Marketing Campaign for Foldable Bikes: A Case Study Analysis, Study notes of Business

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UNIT 2 DEVELPING A

MARKETING CAMPAIGN

Activity 1-Marketing rationale

Phoenix collegiate

13th January 2022 Aaron Bal

Phoenix collegiate Centre number: Activity 1 Introduction: In this marketing campaign I will be conducting a rationale for the bicycle shop. The Bicycle Shop is a medium-sized independent retailer that specialises in commuter bicycles and equipments. The company is a niche market because they specialise in commuter bicycles and equipment; a niche market means that they are limited to specific interests or demands. The owners want to increase sales of foldable bikes and opened the shop to capitalise on cycling's growing popularity among urban commuters. Many of their current customers buy folding bicycles so that they can be easily transported and stored on a train or at work. The bicycle shop wants to focus on one segment of the market to attract more customers and increase the profitability of them making a purchase in order to encourage more people to buy folding bicycles from them. The campaign's goal will be to attract a larger number of affluent people.

Aim: The primary aim of this marketing campaign is to diversify and expand their product line,

which will be targeted to a specific segment of their customer base, such as affluent customers. Rather than focusing solely on its current products, this will help increase sales and broaden appeal, allowing them to have more than one source of income.

Objectives:

1. Attract 1480 new affluent customers to the store, increasing brand awareness.

People will only buy products if they are aware of them, and larger manufacturers

spend a lot of money making sure their brands are known. If the company wants to

expand into the production of foldable bikes, they will need to build awareness with

their target market so that they can begin to attract new customers and gain market

share. Throughout the case study, I learned that the company wants to capitalise on

the growing demand for foldable bicycles, so by focusing on raising awareness of

their more specialised brand, they may increase sales and improve their business's

profitability, gaining market share.

2. To sell 250 bikes to people who see the advertisement during the first 8 weeks. Since

the company has only recently expanded into this product line, it will need to attract

more customers based on their target demographic (for example, affluent

individuals) to increase sales and income. There has been a 10% decrease in foldable

bicycle sales but a 40% increase in bicycle expenditure, indicating that demand for

parts/accessories has increased; therefore, they may discover that by focusing on

specialised bikes, their brand recognition and sales will improve. Throughout the

case study, I learned that the company wants to capitalise on the growing demand

for foldable bicycles, so it will need to attract more consumers by raising awareness

through advertising to differentiate itself from competitors and ensure demand is

met.

3. to enhance customer service. The company has entered the market with this

product; thus, in order to improve customer service and differentiate itself from

competitors, it will need to offer specialised goods that are of high quality, better

value, and status elevating in order to meet the needs of wealthy consumers.

Phoenix collegiate Centre number: bikes, producing 45,000 bicycles per year, the vast majority of which are exported to Europe and other locations. Brompton Bikes will be one of The Bicycle Shop's main competitors. Brompton Bikes has been encouraging the public to try their products by launching a campaign that gave consumers the chance to win a month-long loan of a Brompton Model. Airframe is yet another competitor for the Bicycle Shop. This bike is yet another folding bike design with a speed range of 4-8. The prices for these bikes vary depending on the features that they include, but they start at £965, which is already a few hundred pounds less than any Brompton Bike. PESTLE Analysis Political: Political factors impacting folding bicycle sales include the fact that more people are riding bikes on major roads in places such as London; the number of people riding bikes on key roads has increased considerably since 2000, and TfL hopes to share a 5% form of riding by 2025. Furthermore, the emergence of collaborations between railway companies and bicycle firms, such as South West Trains and the Brompton-based cycling organisation, enables riders to benefit from completely integrated low-carbon excursions and train travel. Furthermore, governments and private organisations have encouraged people to use foldable bikes as their primary form of transportation in order to minimise carbon footprints. Furthermore, national governments have been investing in dedicated cycling routes and implementing rules to ensure cyclists' safety, which would encourage consumers to prefer riding even more if they know they are safe. Building bicycle-friendly streets promotes more people to utilise bicycles as their primary form of transportation, avoiding a big concern in today's society: traffic pollution. Long queues and hours spent stopped in traffic are likely to lead customers to acquire foldable bicycles in order to move conveniently and promptly inside city limits because the bulk of the urban population is prone to traffic challenges on a regular basis. Economics: Economically, the use and purchase of folding bicycles contributes a significant amount of money to the UK economy. In 2015, £1.6 billion was added to the UK economy, and this figure is expected to rise in the coming years. People are realising that these bicycles are a good way to commute and that they are free to use, so they are increasing at this rate. There's also the fact that they're environmentally friendly. However, certain economic aspects are concerning, such as Brexit, which implies imports and exports will be more costly due to the loss of trade union membership; this increases the cost of making products if parts for the bike must be shipped in. Inflation has a substantial influence on a company's sales since it diminishes spending power and boosts borrowing rates. Social: One social factor is that carbon awareness in modern society is extremely high, which means that more people are gravitating toward more environmentally friendly modes of transportation, such as bicycles. Foldable bicycles are more appealing to customers because they are a more convenient and practical option for the consumer. Another factor is that, as a result of the global pandemic that occurred in 2020-2021, from which the world and its economies are still recovering, the folding bicycles market regained its growth trend as a result of public transportation being neglected as to avid direct contact with another individual, which meant that those who did not have a driver's licence and/or a car were forced to opt for a bicycle. Technology: These portable bicycles are very advanced in terms of technology. Their smart, compact design makes it easier for customers to decide whether or not to buy them. They are easy to store because they take up little space, so customers can keep them in their own homes. Because of its small size, it has the added benefit of being able to travel via metros and subways, as well as any other form of public transportation. However, as technology advances, many more people are becoming less active and social as a result of the increasing popularity of video games and social

Phoenix collegiate Centre number: media, as well as more and more people working from home, which reduces the need for people to travel. Environmental: Cycling to work decreases carbon emissions thanks to initiatives such as the cycle to work scheme, and the carbon footprint of people who ride is significantly smaller. Renewable resources, such as recycled material, can be used for bicycles. Legal factors include the numerous legislative changes enacted in response to the environmental impact of carbon emissions. This may have an impact on car usage, and there will be a greater emphasis on travelling with greener options. This will significantly increase the opportunities for folding bicycles to expand their markets. Consumers' ongoing concern about carbon emissions from automobiles is one of the environmental factors. This is a factor that will compel consumers to purchase a bicycle because they will no longer contribute to the carbon footprint and will be using an environmentally friendly mode of transportation. People who choose to travel by bicycle instead of bus or car reduce air pollution, which is environmentally sustainable. SWOT Analysis Strengths Security - With a folding bike, you are less likely to be robbed because you don't have to worry about your bike being taken from the bike rack because you can take your bike anywhere you like since it can be easily moved. For added security, most compacting folding bikes can be conveniently moved and kept at work, stores, and homes. Convenience and multi modal- The bikes are one-of-a-kind creations that fold down to a manageable size. They are innovative because the original idea of a bicycle has been adapted and evolved to better fit humanity, as folding bicycles are more practical due to their easy carry purpose, allowing them to have easy access to transportation, allowing them to travel anywhere while also having environmental benefits. The bikes' small size and compactness allow them to be conventional because they are lightweight and have increased flexibility. This clever design benefits its consumers and customer targets because it is seen as practical because the bike can be easily carried when not in use and has very little storage requirements. Another advantage of the bikes is their light weight, which means they are not a burden to their users because there is no extra weight for them to carry. Environment- Furthermore, these bikes are environmentally friendly, allowing their users to not contribute to carbon emissions while also assisting them in reducing them. This is because by not getting in the car, bus or train, you are reducing your carbon footprint and therefore polluting less in the world. Weakness Price -These bikes are very expensive due to the clever design and advanced technology required to manufacture them. This can be a deterrent to consumers, discouraging them from purchasing and driving them to a cheaper, competing alternative. Diversifying into a new market- The bicycle store may find it difficult to join the new market since it is dominated by large corporations with large client bases, such as Brompton. Due to a lack of market awareness, firms may fail to successfully target consumers, resulting in a loss in sales. Opportunities Opportunities for market growth in the bicycle market are positively affected by factors like: Opportunities created by foldable bikes include an increase in the production of electric bikes. This is because the production of electric foldable bikes is increasing as a result of the increased interest in electric bikes in the United Kingdom. This opens up the possibility of hiring more workers to meet their target output.

Phoenix collegiate Centre number:

develops to enable it to

evaluate whether it has

the desired impact.

Throughout this

schedule the business

will also measure non-

revenue-based success,

which

my campaign also

targets too. Some non-

revenue-based

successes for my

campaign could

be:

• Number of hits from

website advertisements

Phoenix collegiate Centre number:

• Total number of

viewers of the television

advertisements

• The reach f the social

media adverts.

• The time spent by

visitors on the company

website.

The Timescale:

Below I have set out a

timeline for the

marketing campaign.

Timelines refer to the

length

and phases of a

campaign. A business

will monitor the

Phoenix collegiate Centre number:

• Number of hits from website advertisements
• Total number of viewers of the television advertisements
• The reach f the social media adverts.
• The time spent by visitors on the company website. Product lifecycle Development: When a new product is introduced to the market, it is often complex and consumes a significant number of resources. Introduction: a new product is introduced; sales are typically low. Due to low capacity utilisation and high unit cost, businesses rely heavily on promotion to make customers aware of the product and encourage them to purchase it. Typically, cash flow is negative. Growth: sales increase at a much faster rate as the product gains market acceptance, unit costs fall, and the market expands, resulting in higher profits. As a result, cash flow is positive. Maturity: characterised by slower sales growth, low unit costs, and high profits for those with a large market share; weaker competitors begin to leave, and prices begin to fall. I believe that the bicycle shop is in the development and introduction stage, this is because folding bikes are not popular yet and there is much more growing to do in this market. Once they have built up their market share they will be able to conduct a new product which will enter the product life cycle. Porter 5 forces Bargaining power of suppliers- If you have negotiating power, a company will have power and will sell their products (foldable bikes) at a higher price. The higher the customer's purchasing power,

Phoenix collegiate Centre number: the lower the prices that can be achieved. The bicycle shops profits will be reduced if the suppliers force up the prices of imports. If the bicycle shop has strong links and bonds with their suppliers, they may be able to get any deliveries for a lower price, which would help their cash flow because less money would be leaving the business. bargaining power of customers- This includes, for example, the stores audience. Powerful customers can use their purchasing power to drive down prices or increase the quality they require for the same price, reducing profits in an industry. Factors influencing bargaining power include: the number of customers, the size of orders, the number of firms supplying the product, and the cost of switching—customers are less likely to switch if they are loyal to the supplier. Threat new entrants in the market- New entrants will gain market share, and competition will heat up. If the barriers to entry are low, the threat is high, implying more competition. Barriers to entry include: the cost of entering the market, as well as a compelling USP (need a strong unique selling point). The bike business faces some competition in the market, which means their sales may suffer. Threat of substitute/similar products- There are substitute products for folding bikes that might have a significant impact on the bicycle store; if the costs for a folding bike are too expensive, customers will just switch to regular bikes, but commuters on trains would be irritated because they take up too much room. Customers will switch if the bicycle store does not provide the correct product at the proper quality and pricing, and they will not encourage others to switch to their business. Degree of competition rivalry- If there is intense competition in an industry, it will encourage businesses to engage in price wars, investment in innovation, new services, and intensive promotion, which may be the case with Rebecca, but only on a small scale between her local competitors. Reliability and validity of the information researched Due to covid-19 and having only recently known about this topic a day before, primary research has been limited to the case study, which should be reliable. All secondary data research has been compiled from the most recent and well-known publications, and is thus current and reliable. I have avoided using websites such as Wikipedia because they can be unreliable at times. As a result, the information gathered is accurate and legitimate because I used original sources and guaranteed that the data collection procedure produced consistent findings when input was consistent. Justification of rationale Throughout the rationale, it is clear that there is a slight growth in demand for the product. The particular reason for this is because it is convenient and multi modal. This product's adaptation and evolution will better suit mankind, since folding bicycles are more practical due to its simple carry purpose, allowing people to have quick access to transportation, allowing them to travel everywhere while also providing environmental advantages. This design advantages its customers and customer objectives since it is considered as practical because the bike can be readily carried when not in use and has very minimal storage requirements, meeting the bulk of customer needs. This can also be seen by the increased usage and purchase of foldable bicycles, which has contributed significantly to the UK economy. In 2015, the UK economy gained £1.6 billion, and this amount is likely to climb in the following years. People are realising that these bicycles are an excellent method to commute and that they are free to use, thus the number of them is growing at this rate. There's also the fact that they're good for the environment. Furthermore, the demand for the product has grown, as evidenced by the increase in folding bike sales, as well as the fact that more people are riding bikes on major roads in places such as London; the number of people riding bikes on major roads has Activity 1 Aaron Bal 10 | P a g e