HTML Preview Sample Market Analysis and Marketing Plan page number 1.
Disclaimer: Cycle-Rama is a fictional company created by the Maine SBDC to illustrate the major
components of the Business Plan. It in no way depicts or represents any known company.
CYCLE-RAMA MARKETING PLAN
I. Market Analysis
The U.S. bicycle industry was a $6 billion industry in 2010 (this includes the retail value of bicycles,
related parts, and accessories through all channels of distribution), selling approximately 19 million
bicycles, according to the National Bicycle Dealers Association 2011 Industry Overview
(NBDA; www.nbda.com). The industry has benefited greatly as Americans have become more aware
of the positive effects associated with a healthy lifestyle. Bicycling is an excellent cardiovascular
exercise and a great stress reliever. A recent industry trade publication showed that 94.5% of those
who ride bicycles do so for recreation or fitness. The sport is continuing to grow as more and more
people become aware of its health benefits. The Bicycle industry, and Cycle-Rama in particular, is
positioned to cash in on this trend.
Cycle-Rama is a specialty bicycle retailer featuring high quality merchandise, and also offering
additional customer services such as bike fitting, expert assembly, and repair. The approximately
4,800 specialty bicycle retailers in the U.S. commanded roughly 16% of the market in terms of unit
sales in 2010, but accounted for 47% of the dollars, a dominant dollar share
(NBDA; www.nbda.com
).
The industry is a seasonal business that can be impacted by poor weather conditions, as well as
changes in the economy. Fortunately, the economy in Abbotville is strong with an unemployment
rate of 3.6% and a median family income of $42,047 (U.S. Census Bureau,
www.census.gov). Additionally, the demand for bicycles nationwide has increased as people look
for more affordable means of transportation. Approximately 5.2% of those who ride bicycles do so
as a means of transportation.
It is also important to note that Abbotville has two bicycle associations, the Abbotville Mountain
Bike Association (AMBA) and Citizens for a Healthy Lifestyle (CHL). The AMBA has about 200
members who are serious trail riders and take advantage of Abbotville’s many miles of trails. In fact,
Abbotville is home to Bear Mountain State Park, which is known for having the best mountain biking
trails in the state. The CHL has about 100 members who are more casual riders that do mostly
intermediate trail riding.
II. Target Market
The profile of the Cycle-Rama customer consists of the following geographic, demographic,
psychographic, and behavior factors:
Geographics
Our immediate geographic market is the Abbotville area, with a population of 31,473. However,
we will include the 145,917 people that make up the major population surrounding Abbotville,
ME (U.S. Department of Commerce- Bureau of Economic Analysis) as part of our overall target
area.