Marketing Implementation: Based on your understanding of this section, articulate what was useful in this section for FreeRiders, what was absent that could have been helpful from a strategic marketing point-of-view and rationale as to why for each.

MARKETING IMPLEMENTATION

A. Marketing Organization

FreeRiders serves the following market categories: Professional Cyclist, Retailer and Consumer. Currently, the Consumer marketing is handled locally via retailers and FreeRiders local consultants. The Consumer marketing division is overseen by the Marketing Manager with assistance from the Production and Design Manager. The Pro and Retailer markets are primarily served by the National Sales Manager. While this personal approach is effective in all markets, and should be preserved going forward, more structure will be needed to reach FreeRiders expanded targets.

A sub-division of the specialty markets will be created and overseen by Mr. Andersen, still in the role of National Sales Manager. Initially, this sub-division will be staffed by regional consultants on a contract and or freelance basis. Within five years, this division should expand to include regional FreeRiders offices for the B2B segment, overseen by a Director of B2B Sales (position to be created). A dedicated Pro Shop office will be created to manage the small, but highly specialized Pro Cyclist market. As a nod to FreeRiders roots, Mr. Andersen will run this division of the company. It may become necessary at this time for Mr. Andersen to step down as National Sales Manger and dedicate his full efforts to the Pro Shop. A search for a new National Sales Manager will be conducted at that time.

The immediate goal for the Consumer division is to bring to market a new competitively priced entry-level product. Under the five-year plan, the Consumer division will continue its commitment to bringing to market high quality mountain bikes at several price points. The Marketing Manager and the Production and Design Manager will work together to provide consistent product and associated messaging for each line extension. The Consumer division will continue to employ local consultants in every region throughout North America and will expand its presence to Europe and the Pacific Rim.

B. Activities, Responsibility, and Timetable for Completion

Phase One

Product Line Extension: Entry Level Bike.

1. R&D: Stage 1

Gather data on younger, less affluent market.

Persons responsible: Marketing Manager/Marketing Team

Target completion date: November 15.

2. R&D: Stage 2

Create fully functional prototype based on initial research.

Person responsible: Production and Design Manger.

Target completion date: January 1.

3. Testing

Test prototype in the field for desirability, price, etc.

Persons Responsible: Marketing Manager/Marketing Team

Target completion date: February 15.

4. Product Launch

Bring first production run to market for FreeRide events.

Persons Responsible: Marketing Manager/Marketing Team, Manufacturing and National Sales Manager.

Target completion date: April 1.

5. Official In-Store

Deliver pre-sales of Limited Edition unnamed bike to retail.

Person Responsible: Manufacturing

Target completion date: May 31.

6. First Audit/ Evaluation

Person Responsible: CFO

Target completion date: July 27.

7. Official Release of Contest-Named Bike

Person Responsible: Marketing Manager

Target completion date: August 15.

Phase Two

Five-Year Expansion Plan

Using sales and market data from Phase One activities, the company will embark on a five-year plan to increase revenue to between two and five million. There is no official timeline for completion of this plan, as it is dependant on the results of Phase One, however, the following milestones have been created.

1. Specialty Markets Division

Create an interim Specialty Markets Division to oversee the sales and marketing to FreeRiders B2B, Pro Shop and Global markets.

Persons Responsible: National Sales Manager, Human Resources.

Target Completion Date: 8 months following the new product line introduction.

2. B2B Division

A specialized B2B Division will be created to manage relationships with retailers worldwide.

Person Responsible: Director of B2B Sales (position to be created).

Target Completion Date: Within one year of proven results in the Specialty Markets Division.

3. Talent Search for new National Sales Manager

Person Responsible: Human Resources

Target Completion Date: To coincide with the development of the Pro Shop Division.

4. Pro Shop Division

A specialized Pro Shop Division will be created to manage relationships with professional cyclists.

Person Responsible: Bryce Anderson

Target Completion Date: Upon hiring of new National Sales Manager.

5. Consumer Division Product Extensions

Ongoing R&D with a goal of one new product extension per year for the first two years and two new extensions per year for each year going forward.

Persons Responsible: Marketing Manager and Production and Design Manager.

Target Completion Date: Ongoing

6. Global Markets Expansion.

Establish sales and marketing teams in key global markets and create European, Asian and South American regional sales offices.

Persons Responsible: Global Marketing Manager, Global Sales Manager (positions to be created)

Target Completion Date: Ongoing, with significant infrastructure by year three.