Paying three employees

The product choosen for this plan is a trials bike frame. Trials riding is a development from moutain biking. The equipment that a trial rider uses is developing every year in specialzion. This has lead it to developing furthur away from mountain biking. As Trials has only started to develop five years ago, the market is wide open for a new, more advanced product. I have seen a potencial entrance to the market based on research due to great idervidual intresset and envolvement. This has resulted in depth understanding of product quality and price ranges. I have contacted a Russian source who can supply a product of superiour quality.

Due to the low expenses to my business, price will also be reduced concluding that the business will break the circle of low demand due to high price. This will directly, if marketed increase demand as the pleasures of the sport become widespread and well known. Koxx have a fashionable website with videos of proffessionals riding their frames. The possible customers see this, and atomaticaly gain an image of the company. Koxx have t-shirts, gloves and stickers which research suggested people buy because they feel they have a better image when wearing them riding their bikes.

Koxx last year sold over 20 000 french francs worth of shirts and gloves to add to their frame sales. Hype for their products was added through other stylish advertising techniques such as the aperance at shows and demonstrations, website and videos. Megamo have a ‘proffessional’ image. The customers who buy megamo frames are often higher class. Megamo’s are the most specific bike on the market and have the greatest rider in the world developing their frames for them, Marc Cassio. Trials riders have a high desire for them, but 20/40 riders felt that people who owned them have snobbish type of image.

These bikes are for ‘rich daddy’s boys’, as quated by one on the questionees. Marc Cassio riding a Megamo The picture shows a classic proffesional image. Cassio is wearing a competiton lycra suit with attached sponsorship logos. Only 1/40 riders who filled in the questionair owned a lycra suit and only 2/40 said that they felt the suit add desirability to the image of megamo. Planet-X Planet-X is a UK based company. They try to aim their frames at the ‘street riders’. Street rides are typically teenagers who riders who represent them selfs as ‘cool’.

This means the frames have a long 2-year guarantee with desirable graphics attached. Planet-X sponsor a group of riders called the trials kings, who are some of the very best of the British youth riders. Planet-X have a ‘cool’ style, but research suggests that they are not producing the highest quality design of frames. So infact Planet-X are undermiming their potential overall image in the eyes of the teenager. Adam Burns riding for Planet-X bikes. 2) Price Megamo Megamo are very expensive and do not have a long guarantee. At  500 only a few people can afford them. Only 2/40 owned a Megamo frame.

The sales of Megamo frames in the UK is delt with through a single person who imports the frames from Spain. His business will occur low expenses. This suggest a very high mark up is being placed in the knowledge that higher class perants will pay the price for the frame without consern for value due to the overriding factor of quality. Koxx Koxx try to represent a cool image, but their frames are over priced. At 450 pounds per frame, Koxx only sell to the very enthusiastic expert or proffesional class offspring riders rather than the majority of trials riders, middle class teenagers.

Only 2/40 riders question owned one. Koxx are imported by the same person as Megamo, so again a possible high mark up on prices. Planet-X Planet-X frames are relatively cheap at300 and have a great replacement scheme. Planet-X seems to be the best selling frame in the UK. I owned one myself and I also know four other owners. 12 of the questionees have owned a Planet-X frame. Planet-X have high expenses due renting an office, storage space, and paying three employees.