Paper Example. Market Simulation

Business and all aspects of the classroom are amazing and the wisdom behind a classroom lecture cannot be assumed to be irrelevant (Basha et al., 2019). There are some of the benefits that a classroom comes with that cannot be experienced from a home-based learning program. There are the aspects of friends and even the capacity to interact and grow together as a unit in the class. Students are even privileged to be inquisitive just among themselves and understand whatever there is that was not clear in the lectures. In a business course curriculum, there are interesting lectures, but a considerable number of them lack the hands-on lab sessions and ideal case studies that play a significant role in giving the students an experience like none other while handling cases. There are several ingredients that most colleges will miss and the major one is experience. Experience can now be broken down into three segments and that is excitement, motivation, and knowledge retention. Business simulation allows the students to have a first-hand experience of the newly acquired acquaintance in a virtual professional world. The students are able to gather first-hand managerial experience through the running of their very own business in a safe environment.

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As a group of students, we were able to analyze the situation and the market and we ended up concluding from the internet marketing results globally, that the recreational market was ideally high and thus offered opportunities for the Racycles company brand; Bike4All to sell. At this juncture, it was clear in the minds of the product makers and this had to be put in line with the specifics of the product. The outstanding specs of the products were that the bikes were ideal for roads and off-roads a feature that saw the product sell considerably in comparison to the other bikes. There were some tactics that were used in this venture and some of them can be viewed from the decals, there is the colorful thin brushstrokes, and the carriers are attractive plastic baskets that will ideally invite clients to purchase the products. The seats are comfortable and made of a gel polymer offering lucrative padding on the user’s butts. The speed is relatively low as the gears are 1*7 speed meaning the bikes are meant for recreation and hence fun for cycling for fun.

The subsequent tactical marketing decision was the price tactic that played a substantial role in the research (Riaz, et al., 2017 p.1418). In all businesses one has to consider the aspect of price in that one would consider selling many unit products and make a small fraction of income from a single unit of product and cumulatively make substantial income while another company will consider having premium products that will not sell as much but one unit of product would gather huge revenues at a go. In our case, Racycles company sort to sell many unit products at a low price and for the few who would take more than 4 products in one instance were offered a rebate of 50. Regarding prices, the brand of Bike4All, it is evident that depending on the use that is recreational, mountain and speed they are ranked at positions 3:4:5 respectively in comparison to other bike brands from competing companies

Whenever one is interested in doing business and selling products and services, we have to consider the surrounding target market and the areas or regions where the product sells more than others. This will ensure that the company does not waste a lot of resources allocating more products in areas where they will sell just a few (Wang et al., 2019 p. e0164603). As previously established, Racycles recreational bikes are selling more than mountain and speed bikes but the place where the market is booming happen to be in Rio de Janeiro Brazil where the company sells equal products as the competitors in the market 14 in precise. The product sells well too in Bangalore and in Amsterdam equal to other bike companies selling in the region.

Finally, promotion works magic for very many companies especially when done right and with a target in mind. Advertisements are expensive and thus any company pursuing the course of advertising their products ought to understand the logistics pretty well. Racycles have allocated a substantial amount of resources and ventured to virtual technology where they have been local media inserts even higher than triple the close competitors amounting to 1645. From the internet market result, Bike4All brand has an advertisement judgement of 78, the company have allocated resources in social media campaign and the company has paid an amount of 3,380, total clicks amounting to 3444 and has a budget of 14380.

From the budget allocated for advertisements, it would have been ideal for the business to test the waters with a dip stick other than with two feet. It can be seen that the business was not doing good and this is evident from the number of unit sales that the brand made in the world market. The amount of resources that company allocated to facilitate more sales speaks volumes. Some of the things I assume the company did not consider are pricing. As the data suggests, the brand is wanted in the various cities and price is not a factor to consider. From the idea, there is a wide range of ideas that can be implemented to make sure the business increases its revenue. First, I would suggest for the company to review the pricing strategy (Cocco & Marchesi, 2016). Depending on the region, lowering the prices would increase the sales and thus have larger amounts of revenue collected. An increase in price would create a perception to the buyers of quality and hence gather more revenue. Incorporating enticing messages to promote the brand would make the product sell. In this case, Bike4All brand could incorporate a slogan such as “workout comfortably on me” or “enjoy erasing extra calories comfortably”. Either of the slogan would create curiosity and most probably sell. My final suggestion I would recommend the company to develop relations and cross promote the product such as in school events, or open hiring bikes farm where clients can hire bikes for workouts.

References

Basha, N.K., Sweeney, J.C. and Soutar, G.N., 2019. Evaluating students’ preferences for university brands through conjoint analysis and market simulation. International Journal of Educational Management.

Cocco, L. and Marchesi, M., 2016. Modeling and Simulation of the Economics of Mining in the Bitcoin Market. PloS one, 11(10), p.e0164603.

Mizuta, T., 2016. A brief review of recent artificial market simulation (agent-based model) studies for financial market regulations and/or rules. Available at SSRN 2710495. (Mizuta, 2016)

Riaz, S., Verbic, G. and Chapman, A.C., 2017. Computationally efficient market simulation tool for future grid scenario analysis. IEEE Transactions on Smart Grid, 10(2), pp.1405-1416.

Wang, J., Wu, J. and Che, Y., 2019. Agent and system dynamics-based hybrid modeling and simulation for multilateral bidding in electricity market. Energy, 180, pp.444-456.