Although unlikely, there is a chance that the competitors may decide to focus their marketing attention towards the freshman class.  If this does happen The Spoke N’ Rider has developed the following contingency plan.  The Spoke N‘ Rider will lower their markup on bicycles by 5% to capture the competitive pricing edge.  As stated earlier in this plan, pricing is a key deciding factor not only for the average consumer but especially for the student market.  If The Spoke N’ Rider offers the same high performance bike lines as the competitors but at a lower price point, they should be able to maintain their leadership in the student market.

Another risk is the possible delay in the completion of the shop’s expansion.  Currently all plans appear to be ahead of schedule, but construction issues may cause delays.  The Spoke N’ Rider has developed the following temporary solution in the event of this delay.  One of the attractive factors of the planned expansion is the added diversity in the bike offerings.  The Spoke N’ Rider plans to advertise these expanded offerings at the start of the school year.  Instead of changing the advertising plan or timing, The Spoke N’ Rider will offer catalog sales, requiring 50% down payment on all orders.  The shop will guarantee a delivery time of 5 days or less, or the customer will receive 10% off the total price of the bicycle.  If the customer is not happy with the bicycle once it arrives in the shop, he or she may choose another bike or get a full refund on their deposit.  Any bikes that are not purchased will be kept in inventory for the eventual expansion.

The last risk is the proposed student parking deck.  The school board is currently reviewing the proposal and they will decide by December 19xx whether or not they plan to proceed with this deck.  Although the proposal is unlikely to be accepted due to University space constraints and local zoning restrictions, it is still a risk.  If the proposal is accepted, The Spoke N’ Rider will refocus their targeted segment market to cover all students.  This plan would take effect in 19xx.  The advertising and pricing efforts would be refocused to target the entire student market.