The company focuses on offering personalized tours for its customers. As a successful company, the current goal is to further expand the services and potential across South Eastern Europe, encouraging new clients to become part of a healthier community by protecting the environment through the services provided. Situation Analysis AAA Bike Challenger is dependent on annually visiting clients from the tourism and local sectors with guaranteed rentals per year. This area of business accounts for 80% of the company’s revenue.
The current market is seasonal, high demand in the summer and lower demand in the winter, due to the downturn of tourism during the colder months. The current expansion goal will have a focus on the South Eastern European countries of Slovenia, Croatia and the Central European countries of Poland, and Czech Republic. The geographic locations of the expansion are critical to the company success since it relies on the amount of tourists and locals in the area trying to find recreational activities such as cycling in easily accessible locations.
The focus will remain to find the locations with the highest tourism rates and high local recreational activities locations. AAA Bike shall as well continue to focus on levering an exemplary service, at affordable rates, in order to develop customer retention beyond one visit and create business-to-customer trust to be recommended to future travelers and local clients by the present ones. Customer Segmentation The strongest target market is focused on all tourists, both foreign and local.
From this group, the best targets are the tourists and locals who enjoy sightseeing, recreational activities, and who are environmentally and health conscious. It is important that the company also takes account on the size of the groups that will be renting bikes. The company must be prepared to offer different deals to different group sizes like solo riders, couples, families, or big visiting groups Of 6 or more people. SOOT;misanalysis The following analysis presents the internal strengths and weaknesses of AAA Bike Challenger and the current opportunities and threats that the company faces in the external environment.
The company must focus to improve in the areas of weaknesses and eliminating or surpassing the potential threats. Strengths Weaknesses Reliable service Top rated bicycles Unique and exclusive tours Lack of reputation Lack of customer retention Lack of expansion experience Opportunities Threats Continuous tourism growth Rising gas prices Existing competitors positioning When entering the new markets in different countries, the company must focus on being eye-catching in the market.
To successfully achieve this, AAA Bike Challenger will focus on implementing thematic tours for clients, among them: religion based tours, historic tours, and romantic tours for couples. To successfully implement these ideas, the company must focus on cooperating with the existing local businesses that can also benefit from our services, such s hotels, hostels, motels, guesthouses, restaurants, cafes and shops. Along with this cooperation, the company will focus on providing affordable prices by offering permanent promotions, which will make the company a strong competitor in the market.
Current Competition Bike Tours Road bike holidays Salamander’s Mountain bike holidays Extreme Biking Cycling Holidays in Europe & UK Market Research Poland The following chart presents the ongoing tourism growth in Poland: 2010 201 1 2012 As the tourism grows in Poland, it is also an advantage that Poland provides mom of the most appealing biking routes for tourists. The main route in Poland starts at the Polish-German border in Conscience and passes through the picturesque seaside resorts of Microcode, OK;border, Million, Status, Babe, and Hell.
While traveling through these wonderful places the tourists have a chance to admire the beauty of the surrounding nature (alluring wetlands, moving dunes pristine forests, scenic hills) and feel the freshness of the sea breeze. Afterwards the route reaches the cities of Agenda, Spot and Shahs, where a wide variety of attractions, events and places are waiting for rigorists. While being there you cannot omit to visit the Amber Museum, Agenda aquarium or have a stroll at the Spot Pier.
Cute next section of the trail leads through Labels and Framework where we can take an unforgettable cruise along the Fistula Lagoon or watch the stars at the local planetarium. To sum up, the Polish section passing through golden beaches of the southern Baltic coast and adjacent areas is undoubtedly one of the most beautiful parts of the Baltic Sea Cycle Trail. For the expansion, the AAA Bike rental would be located in Warsaw. Warsaw has approximately 10 different bike rentals mongo them Vitriol, Bamboo Bike, Rondo, and Bamboo Bike. These are automatic shops where there is no office necessary.
The goal is to expand into Prague. It is clear that cycling in Czech Republic is a really[Lowell-balanced vacation experience. The current bike rentals in Prague are: Pariah Bike, KOLA Bike Rental Prague, Like Bike, City Bike, Automate, FAME sport, Green Lemon s. R. O. , HOMEWORK s. R. O. And Michael Sub – Scooter’s. The vast amount of offices in Prague might make the competition difficult and the slight drop in tourism might affect the results as well. The safe expansion decision into Prague would be to collaborate with one of the local businesses first before expanding.
Slovenia Lausanne reported 458,527 tourists visiting for the year of 2013 according to the Region of Central Slovenia Journalists. Since it is a small city, there are around 3 to 4 bike rental offices in Lausanne, among them the most successful one being Lausanne Bike Tours. This would give AAA Bike Challenger an advantage to open in a market that is not yet saturated. Lausanne is a charming small city and tourists can get the best overview of the main city attractions by bike.
This gives tourists the advantage to easily ride off the beaten tourist tracks and find amazing places, normally visited just by the coals. Lausanne is definitely a cycles-friendly city, in fact, the oldest preserved wheel in the world here. Marketing Strategy The marketing strategy’s objective is to expose and communicate the unique set of services that AAA Bike Challenger offers to tourists in the South Eastern European regions where the company will expand.
The focus will be directed to the unique and personalized tour offers and the affordable prices offered for them. This marketing strategy will allow the company to communicate its value, create customer retention and to be able to receive valuable feedback that ay improve the company’s service in that specific location based on customers’ reviews. Continued differentiation and growth are part of this expansion goal. The growth will naturally progress through the targeting of tourists, both locals and internationals.
Value Proposition AAA Bike Challenger offers the best and most personalized service for the adventurous traveler. We offer different tour options, such as romantic, religious or historic tours, and provide any other equipment that might be needed such as helmets and locks for the bicycles. Financial Objectives Increase local revenue in Challenger by 10% in the upcoming year Accomplish growth in each new opening in the South Easter European region with a given budget Of 10,000 E for each shop.
Accomplish customer retention with the locals to increase permanent revenue Keep payroll expenses low and maintain a low level of overtime within the workforce Marketing Objectives To communicate the strategic objectives to the target market effectively To provide a positive biking experience to every biker To accomplish growth targets within the given time and budget To have successful expansions and keep on identifying new markets to provide the reduces and services.
Implementation All figures will be monitored on an ongoing basis in relation to projections versus actual, and the ongoing plan will be altered or manipulated as necessary in order to react to and, wherever possible, anticipate external changes to the environment in each city where the company has applied its expansion. Annual results will be evaluated first on each of the offices based on each city, which will then proceed to the headquarters at the Challenger office. Afterwards, the structure of the plan for the approaching year will also be established.