The Market Target for the Moveo Foldable Electric Scooter - Assignment Example

MARKETING COMMUNICATIONS PLAN FOR THE MOVEO – FOLDING ELECTRIC SCOOTER s s Address Company Goals MOVEO Limited Liability Company is a subsidiary unit of the Antro Group established in 2008 dedicated to innovation of eco-friendly transport means. The company in 2013 unveiled a new product the MOVEO the folding electric scooter which they intend to begin distributing by June 2014. The company was founded by Zsolt Hegedűs and Géza Hivessy in 2001. The company’s headquarter is based in Őriszentpéter, in the western corner of Hungary (Antro Group). The vision of the company is to lead in the innovation of prototypes making use of environmental friendly technologies and materials that decrease the weight of the locomotives in order to reduce the consumption of energy. Their mission is to establish an environmentally friendly quality mode of transport that offers a cheap and comfortable alternative to the existing transport means. Marketing Goals Target Market The market target for the MOVEO foldable electric scooter is individuals mainly residing in urban areas. The foldable electric scooter was created with the intention of regulating commuting by car which in turn reduces the emissions that pollute the environment. This follows the growth of awareness among the consumers who are now beginning to welcome two wheeled vehicles as a new mode of transport (Hurst & Gartner 2012). The market for electric scooters has also been boosted by the introduction of electric cars since there are charging spots that are easily accessible within the city which is attracting the interest of both new and existing consumers (Pinson, Jinnett & Pinson 1996). The major primary market for the MOVEO foldable scooter is the Asia Pacific region. This is because there is a high rate of urbanisation which continues to grow every day. Due to this, it leads to congestion in traffic coupled with emissions that pollute the environment. Following these reasons, the governments in the region have all come together to promote the use of electric scooters in order to manage pollution. The electric scooter market is expected to grow tremendously in countries like china and India which also happen to lack the foldable scooter models. The secondary target markets include the North American and the Western Europe markets where electric scooters are currently gaining popularity. The North American emerging market has consumers who buy the electric scooters for luxury purposes who will not hesitate to spend on anything that is stylish in order to match their lifestyles. This is because the clients in the region view two wheeled vehicles as a form of luxury rather than a necessity which means those acquiring them are people who can afford to spend on luxuries easily. The other secondary target market for the MOVEO foldable electric scooter is the Western Europe region. The demand for electric scooters is expected to grow by roughly 40% in the region which has mainly been attributed to increased employment opportunities and a new interest in consumers to find alternative transportation modes to ease travel within the city (Hurst et al 2012). Market Positioning MOVEO Company limited acquired a patent that will help them remain in control of the foldable scooters market for a while now. This successfully locks out competition since entry to the market is limited to other companies that may decide to copy the design (Prigg 2013). To create a niche for themselves in the market, the company intends to use the internet to make the first initial sales. This is also the mode being used to place pre orders for the first batch of production. The company has also capitalised on its ability to produce stylish and affordable foldable electric scooters to emerge as the sole player in the new industry. By adding the folding feature, this distinguishes the company’s approach to the market by offering a modern stylistic and cheap solution. This makes the product to command a huge market base since it is a can fulfil the lifestyle requirements of urban residents together with it’s environmentally and human friendly characteristics (Von Possel 2011). Product Positioning The MOVEO foldable electric scooter differentiates from other scooters in that it can be carried in doors to avoid any uncertainties like theft in the parking space (Coxworth 2013). This security feature is not available with other electric scooters which ensure that consumers do not need to worry about the safety of their scooters. This also helps to save consumers the agony of searching for appropriate parking spaces and saves them time in so doing. The foldable electric scooter can also be easily transported using other means of transport and this mobility allows the consumers to use the scooters whenever they want. This is because they are light and they also hide the dirty underside inside after being folded ensuring that the scooter is easy and neat to carry around. In this way, it helps to reduce reliance on vehicles for personal use which in turn saves on maintenance costs for them. This is also putting in mind that the electric scooter has minimal or no operational costs making it even more pocket friendlier to most consumers (Mohr, Sengupta & Slater 2010). By hiding the dirty underside and dragging it like a suitcase, it makes it even easier to move around with since it requires minimal space and also has an attractive appearance which fulfils those classy tastes of urban residents. While other electric scooters are use of Lead-acid batteries, the MOVEO foldable electric scooter uses a Li-on battery. This makes it different from the rest since this battery requires a shorter recharge time of one hour and has a prolonged battery life unlike the Lead-acid batteries (Prigg 2013). Although Lead-acid batteries have a higher flow of voltage, they are heavy and cannot offer long ranges like the Li-on batteries. Incidentally also, the current use of Li-on batteries stands at 5% which again creates a competitive advantage for the product (Hurst et al 2012). This is because most electric scooters are unreasonable heavy and they offer a relatively small range unlike the MOVEO foldable electric scooter which has a prolonged battery life range of up to 35 kilometres. Marketing Communication Campaign Goals The marketing communication campaign for the MOVEO foldable electric scooters will run for a 12 month period from June 2014 to May 2015. The main aim of the marketing communication campaign will be to create awareness about the foldable electric scooters to the entire global market. This will seek to create a new market or clientele base that will begin using the foldable electric scooters in order to increase the number of consumers all over the world. This communication campaign will also seek to create a niche in the market for electric scooters in the already heavily dominant Asian market which currently leads in consumption. Together with this, it will seek to identify a new and dominant market for MOVEO foldable electric scooter in the North American and Western Europe markets which are yet to be exploited to their full potential. Promotional objectives This marketing communication campaign will make use of both pull and push marketing strategies. The pull marketing strategy helps a company to create demand for a new product in the market. This is because it attracts consumers to try out the new product and also helps to create or promote the brand. The main intention of this marketing strategy is to pull in new clients from an existing market in order to establish brand loyalty among the new consumers and also to attract totally new clients to your product. The pull marketing strategy is thus a long term strategy that is used to build a brand name and also to create a reputable image for the company (Shin, 2013). Ideally, the pull marketing strategy works by prompting the consumers to enquire for the products from retailers or wholesalers who will in turn create orders for the products to the manufacturer. This method of promotion is achieved through the use of sales promotions, media advertising, and customer relationship management. The other promotional strategy that will be used is the push marketing strategy. This mode of promotion involves finding avenues through which the company can avail the products directly to the consumers in order to create an interest in them. Generally, this method works for markets where the products are purchased on impulse basis just because the client is now aware of such a product (Shah & Dsouza 2009). The MOVEO foldable electric scooter is a new invention and this may easily catch the attention of new clients. The push marketing strategy is achieved through identifying a supply chain to establish a proper distribution channel, making use of technology expos and offering retailers discounts for them to stock the new products. The promotional strategy will thus involve combining the two push and pull strategies in order to ensure that demand for the product is created and also to create awareness of the existence of the product directly to consumers. Factors Influencing the Marketing Mix Nature of the Product The new ultra-light MOVEO foldable electric scooter is made of light carbon fibre material in a design of an organic shape. This great innovation is new category of the electric scooters because it can be folded instead of being left outside in the parking. The MOVEO foldable electric scooter weighs as little as 25 kilograms and is foldable into two within a short span of 2 minutes, which makes it convenient to drag around instead of leaving it in the parking (Coxworth 2013). The top speed of the MOVEO foldable electric scooter speed ranges between 35 km/h to 45 km/h. Its Li-on battery life runs up to 35 kilometres. The scooter is easily rechargeable and it takes only one hour to full charge. The wheels are propelled by special in wheel motors and they are hidden below the body. The scooter also has a leather seat on top of the hood in order to improve the comfort of the ride. After the rider arrives at their destination, it takes them a maximum of two minutes to fold the carbon fibre body into two exposing the integrated handle that allows them to drag the scooter like a suitcase as they enter indoors (Prigg 2013). To prevent the owner from getting into contact with dirt, it has an enclosed design that helps to hide these soiled parts. Nature of the Market According to findings in the a Market Drivers and Barriers, Government Policies, Technology Issues, Key Industry Players, and Global Demand Forecasts study by Pile Research, there is a high level of consumer awareness about electric scooters. This means that the markets for the electronic scooters are expanding all over the world (Hurst et al 2012). This is because they have been concentrated in Asia for a long time with the largest market being in china which in 2012 had an annual sale of over 8.5 million electric scooters. New markets however have begun emerging in North America and Western Europe growing at an annual rate of 9 % and 78% respectively. This is because they have lower maintenance costs and their prices are pocket friendly to the consumers. Due to these conveniences, they have gained popularity among companies with fleets including taxi and delivery companies and also individual customers. It thus shows that the convenience offered by the electric scooters makes consumers ignore the initial high purchasing costs since they also get to enjoy environmentally friendly experience. This is supported by findings from a research which shows that more that 12 million electric scooters were sold in 2013 with the number expected to increase by more than a million in 2014 (Hurst et al 2012). But despite all these advantages, there are no foldable electric scooters in the market currently which shows that there are still a lot of untapped market opportunities. The Chinese market which also holds almost 98% of the market share has in recent times been affected by government legislation which has seen the ban on lead-acid batteries (Hurst et al 2012). This has reduced the number of manufacturers since not many are able to convert to the use of the recommended Li-on batteries. This development definitely creates an opportunity for other players in the industry to fill the gap created by the restrictions on the Chinese markets. Stage in the Life Cycle of the Product MOVEO Company limited began the mass production of the foldable electronic scooters in January 2014. The project was initiated in 2008 and the first prototypes developed by January 2013. The company has already established a manufacturing firm in Hungary which will help with the serial production of the foldable electronic scooters. Currently the company is receiving pre-orders for the first set of foldable electronic scooters to be released in June which it hopes will increase the number of the initial release sales. To roll out its production, the company began with this mode of medium scale production of 4,000 units annually which will be ramped up to 15,000 after the first year in circulation based on the response from consumers. Pricing According to Tamás Slezák one of the founders, the initial offer price for the MOVEO foldable electric scooter is expected to be £2000 during its launch in June 2014. However, this price will be reduced mid-way through the promotional campaign based on the number of orders that will already have been placed and the average costs of producing the foldable electric scooters. The pricing of the MOVEO foldable electric scooter will thus be based on the level of demand but at the same time offer a cheaper offer. This is to create a competitive advantage over other electric scooters whose process range from between £3,200 to £ 4,800 which will ensure that it stays ahead of the competitors (Lamb, Hair & McDaniel 2012). Co-ordinated Communication Mix Advertising The messages that will be used for the advertisements carry a common message that emphasise on the environmental friendliness and convenience offered by the MOVEO foldable electronic scooters. The visual representation on the advertisements will show the images of the electric scooter in both its full and folded forms. The advertisements will also use minimal graphics in order to ensure that more focus is given to the MOVEO electric scooter and its qualities (Shimp 2010), Dahlén & Lange 2008). The theme created for the, marketing campaign will be used across all media to maintain consistency. The various forms of advertising that will be used will include print media and outdoor advertising which will help to cover a larger part of the global market. Radio advertisements will also be used in order to create awareness to the local population. Print Media The most relevant print media that can avail the adverts globally is the use of magazines and journals. This is because people have almost predictable reading habits and they tend to have their favourite magazines and journals. To capture a larger audience, the magazines that will be used to place the adverts will mostly be travel magazines. The intention of the print adverts will be to emphasise to the target market about the quality and low cost of the MOVEO foldable electric scooter. The main advantage of using print media in the form of magazines and journals is that they are normally passed onto others after one is through reading. This will ensure that the message passes on a lengthy period of time creating continuity that can run for a longer period of time while at the same time being exposed to a larger audience (Popp 2012). In terms of costs, print advertisements are rather expensive which creates the need for the print media to be used specifically during major travel holidays or major attractive events. Out Door Advertisements This is an extension of the print media advertising and only serves as a support procedure. Its main intention is to deliver the message that was intended while at the same time promoting the brand. This is because they can be put up for a longer period of time in public places and thus reaching a very wide audience (Luther 2001). The bill boards that will be used for outdoor advertising will be placed near borders and inside major cities where the markets for electric scooters are concentrated. This method offers a cheaper alternative since there is no media required to transmit the information but rather the initial costs of acquiring and putting up the bill boards. Posters and banners will also be used as part of the outdoor advertisements since they can be placed in places with huge public presence. These include bus parks, train stations, and recreational parks where most of the target population is expected to be concentrated in all the target markets. Radio Advertising Although these adverts are rather short, they are very useful in capturing a large audience to create awareness about the product. The radio advertisements will be conducted in proximity to major holiday seasons where people are generally expected to spend a lot. This form of advertisements will also be use4d to promote the MOVEO brand while at the same time promoting its benefits as an individual product (Pride, Hughes & Kapoor 2012). Internet Marketing This is the cheapest form of marketing that can be used and also promises to cover the whole globe with ease. The company intends to make its first advertising campaign using the internet and great care requires to be taken to ensure that it is able to gain the attention of a large mass of the targeted market (Smith & Taylor 2004). To be successful with the internet marketing, it will be important to hire individuals with great skills in search engine optimization in order to ensure that only popular pages are used for the campaign. This will involve animating the banners to make them catchy to the target audience with the voice overs used in the radio adverts being used as background vocals (Rosenbloom 2009). The banners should also be similar with the theme identified for the campaign in order to maintain the MOVEO brand and at the same time convey the desired message or outcomes. The internet campaign can also be achieved through use of social media sites like Facebook and twitter which also offer an extremely cheap and effective platform to reach the global market. Sales promotion Sales promotions are important in building the brand loyalty with the consumers. By offering incentives, the consumers will be drawn to the MOVEO foldable electric scooter. This is because it is a new product being introduced in a heavily saturated market and thus by creating a differentiation strategy, the product can gain in on the other competitors (Ajami 2006). One sale promotion strategy that will be used is the reduction of prices in order to stimulate high initial sales. By offering such a quality product with a cheap initial price, the release sales will be boosted significantly which will also satisfy the intention of the marketing campaign. Sales promotion will also be used to create a distribution channel since retailers will be offered the products at a subsidized price in order to bring the products closer to the target market. Retailers can also be offered samples that they can use to create mini promotions where they will be won by their clients another perfect strategy to push the product to the consumers (Kazmi & Batra 2008). Evaluation and Control After developing an appropriate marketing communication plan, it is important that an evaluation be conducted in order to identify the milestones gained from the campaign (Middleton 2012). The MOVEO foldable electric scoter marketing campaign success will be determined using the following criteria; I. Determining the levels of awareness that have been attained among the target population in order to identify the effectiveness of the promotional strategies. II. Special website analytical software will be used to determine the success of the internet marketing in creating global awareness. This will give a rough number of people visiting the website pages and also the company’s Facebook and twitter social media accounts. III. Periodical analysis of the total sales will be also be conducted within a range of three months in order to identify markets that have already been penetrated and to gauge the average success of the marketing communication. Budget and Implementation Radio Advertisements £1000000 Magazines £750000 Journals £750000 Posters £500000 Banners £700000 Bill Boards £1000000 Search engine optimization Professional £300000 TOTAL £5000000 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 Broadcast Radio Adverts Print Magazines Journals Support Media Posters Banners Bill Boards Internet Website Facebook Twitter Bibliography Agricultural and Food Marketing Management. Available from: Chapter 10 Marketing Communications. http://www.fao.org/docrep/004/w3240e/w3240e10.htm (April 26, 2014). Ajami, RA 2006, International business: theory and practice. Armonk, N.Y., M.E. Sharpe. Antro Group. About Antro. Available From: http://www.solo-duo.hu/main.php?lang=en (accessed April 26, 2014). Coxworth, B 2013. 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