Stealth Electric Bikes - Case Study Example

Stealth Electric Bikes Executive Summary This report sets out to explore the marketing activities of stealth bikes and a lot of emphasis will be placed on their electrical bikes. The report first offers an overview of the company, product overview and competitor analysis. This section is closely followed by a current situational analysis of the company. The report also looks at the current marketing strategies that the company has adopted in relation to their electrical bikes. The report also offers a number of recommendations that the company can adopt so as to gain a competitive edge in the market and they include: Focusing more on electrical bikes rather than on dispersed market More stringent quality control measures Takeover of some firms and acquisition of the ones that are performing poorly Contents Stealth Electric Bikes 1 Executive Summary 1 Contents 2 Introduction 4 Company Overview 4 Competitors 5 Product description 6 Current market situation 6 Technological analysis 6 Economic analysis 6 Social analysis 7 Political analysis 7 Swot Analysis 8 Objectives and issue analysis 8 Stealth electrical bikes 9 Marketing strategies 10 Pricing and positioning strategy 10 Distribution strategy 11 Promotion strategy 11 Public relations and publicity 12 Action Program 13 Recommendation 14 Focus on electrical bikes 14 Strategic takeovers 15 Enhancement of quality of their products 15 Conclusion 15 References 17 Introduction Due to the outstanding performance of Stealth Electric Bikes limited, most of the products have accessed Queensland market and New South Wales markets. Their products have also been preferred by most customers in comparison to their competitors. This could be caused by some of the recent manufactured competitive products. According to (Van 2012), some of the recently manufactured products are two powerful electric bikes named bomber and fighter that have a speed of over 80km/h. The have quality batteries which covers 70 miles per every charge. These electric bikes are made from high quality and strong aerospace materials. They are also made with integral skills of electric automobile technology. The machines have no sound and the only sound one can hear is when the machine is at a very great speed. It has other models of motorbikes which are sold at affordable prices. Stealth limited aims to sell its product in Queens land and New South Wales markets areas because of anticipated potential markets. These areas also have stable political environment, stable sources of incomes, is less affected by inflation rates and has less competitors. It aims at making movement and transport fast and reliable even in jungle areas of Queens land and the southern parts. They also aim to offer their products which are of high quality at affordable prices. Company Overview When conducting the current market situation analysis the company should evaluate it current status and one of the analysis is market overview. Stealth Electric Bikes Company is based in Australia at place called Melbourne. It started during the year 2005. It is an engineering company that is outstanding in production and manufacture of electric bikes. Its products are preferred by people who cover long distances especially on jungles (Van 2012). The company uses marketing principle to operate its day to day business operations. In selling and distributing their products the company sells to customers directly without bias or prejudice. The company also sells through sales representatives who help the company to evaluate the condition of the market at marketing and distribution level. The company has a quality control department that evaluates and enhances quality of motor bikes produced. The products are also in conformity with the bylaws and standards required by the Australian government. The products are also legalized to be sold in Queensland and the south Wales markets (Ciopi 2010). Competitors The company has been devised ways and means of remaining competitive in the Queensland and south Wales markets. One of the ways of remaining competitive is producing fast machines that are of high quality and with affordable prices to the consumers. For instance they have produced very fast electric bikes of 70km/hour. One is called the bomber and the other is called the fighter. Stealth Electric bikes have a power of over 750 watts. Stealth has also analyzed and identified some of its competitors. Some of the competitors of stealth are Stromer Electric bikes which offers an Electric bike of 600watts power , Focus Jarifa which has about 300 watts and Kalkhoff about 250 watts (Buczynski 2012). Compared to all competitors Stealth electric bikes are the toughest and also affordable. Product description Stealth deals in variety of products and services like helmets, hand baggage, ornaments, tresses and racks. Some electric bikes models are fighters, bombers, scooters commuters folding cargo, ladies shopper, budget and standard. They offer guarantee services, repair, and give special offers on all accessories. Stealth electric bikes are also of the best quality and the strongest. They have both pedals and an electric motor which can travel very fast and they are not heavy in weight (Buczynski 2012). Current market situation The company should undertake a pest analysis. Pest analysis includes evaluating the Political, economic, social and technological factors. Technological analysis Technological factors also have a noteworthy impact on Stealth electrical bikes. In relation to this companies opt to hold meetings online for example using video conferencing. This may ultimately affect the electrical bikes in that a few people will be willing to purchase them. Another factor is attributed to the aspect of people working at home. Therefore little means of transport is required. At the same time other competitors are using growing technological advancement to improve on speed and quality of their products which might affect Stealth products (Choe & Orr 2011). Economic analysis The petroleum prices have increased tremendously and this might make people opt to use Stealth electric bikes. These bikes are economical in consumption of petrol. Most people in Queensland and New South Wales are earning. There is continuous and reliable exchange of currencies in Queensland and the New South Wales parts. On the other hand inflation rate may hike and these may have adverse effects on the prices of Stealth products. The prices of bikes may increase and most customers would not afford. A great percentage can afford to buy Stealth Electric bikes as they are of best quality and are available at fair prices. The increase in inflation rates may affect interest rates. This would make customers experience difficulties in obtaining loans to buy Stealth products (Choe & Orr 2011). Social analysis In focusing the social aspect the population growth rate of Queensland and the new south parts is on the rise which forecasts a reliable market for stealth products. Many people are employed and the income data shows that most people in these parts are earning. The religious beliefs and cultural practices of Queensland and the new south parts are friendly and welcoming to most people. The perception and attitudes in regards to new products from other countries and other parts is not conservative and therefore people would buy electric bikes as an alternative means of transport (Choe & Orr 2011). Political analysis The government law and regulations are subject to change. The government may change some tariffs, increase some taxation charges or put some business restrictions. This might affect Stealth electrical bikes sales adversely. The political status of the country can change. These can affect business performance. For instance strikes protests and riots would affect the business activity (Choe & Orr 2011). Swot Analysis The SWOT analysis is usually used to depict the threats, strengths, opportunities and weaknesses of a firm. It is a popular method that is usually applied in strategic market planning, decision making, analysis and evaluation (Yadin 2002). The table below shows the SWOT analysis of Stealth Electric Bikes. Strengths No consumption of petrol Low maintenance cost Light weight No gear Less noisy Smooth riding Environmental friendly Zero pollution Weaknesses Speed limit Limited charge store Not suitable for long drives Non availability of the spare parts in the market Opportunities Aspect of global warming Availability of market Stable social environment, high income and low inflation rate Threats Low awareness Negative consumer perception High competition Objectives and issue analysis All marketing plans are usually designed with the certain marketing objectives in mind. Marketing objectives describes what an organizations needs to achieve with their marketing activities (Albaum and Strandskov 2005). The major marketing objectives of 'Stealth Electric Bikes' in the marketing of their electrical bikes are: Increase the awareness of electrical bikes among the prospective target market notify the target audience about the advanced features and the benefits that are associated with the electrical bikes decrease potential customer resistance to purchasing the electrical bikes from stealth deliver company value to the customers as well to their partners Issue analysis One of the major issues that need to be addressed related to the lack of spare parts in the market. The company ought to ensure that they make their spare parts readily available in the market so as to ensure customer retention and satisfaction. Customers’ tend to shun away from buying commodities that lack spare parts since it will prove hard to them to repair them. The other issue that ought to be given some prevalence relates to low inflation are, stable economy and high incomes (Armstrong et al. 2012). Through this the customers will be able to purchase the products more easily and in large quantities. Thus the company ought to ensure that the products are available at all their distribution centers so as to ensure that the customers are not frustrated due to lack of enough stock. Stealth electrical bikes Stealth electrical bikes offer their customers with distinct level of benefits as compared to the electrical bikes that are offer by their competitors in the market. The size of the electrical bikes makes them easily portable and offers a lot of convenience to the users. The bikes are termed as been among the most powerful and hybrid bikes in the world. Stealth electrical bikes have also been noted to offer a lot of convenience and comfort to the users. Marketing strategies Stealth seems to be a leader in using new and innovative technologies in the aim of keeping their customers with the ever changing technological demands. The electrical bikes market in Queensland and New South Wales are estimated to be high. There is a prediction that the growth in the market will continue and thus the creation a great opportunity for the manufacturer of electrical bikes such as stealth (Jobber and Fahy 2006). The various segments if electrical bikes market can basically be classified into the following core segments (Armstrong 2012): House wives School girls and boys College girls Aged and retired people Pricing and positioning strategy Song and Chintagunta 2003 assert that the prices of commodities are the most easily adjustable aspects in the products marketing mix. Stealth electrical bikes use the pricing tactics as a component of its pricing strategy. Variations in price determine the product success in the market. Stealth electrical bikes are priced in a sliding scale in that the higher the quality of the bike the costlier it is. Their use of the sliding scale pricing strategy is bestowed on the notion that customers have that quality of a product is relatively related to the price charged on the item (Royne 2002). The company ensures that it does not price its products below some prices as an assurance of quality to their customers and thus they offer their bikes at reasonably moderated prices. Distribution strategy Stealth electrical bikes ensures that its bikes are available to their customers whenever they want to purchase them and wherever they ar. The company implements various distribution strategies based on the region as well as the perceived effectiveness of the strategy that is in use in the company. The company uses exclusive distributorship in marketing their electric bikes. For Stealth electrical bikes to maintain a better position as a company, they tend to offer the best quality (Tony 2000). The company has its distributors evenly distributed in countries such as Europe, Australia, china, Germany, Colombia, Canada, and France and also in the US. Over time, Stealth electrical bikes have integrated their distribution strategy with IT so as to enhance the manner in which their customers get access to the products that they need. Through the website a customer is directed to the nearest location where he/she can purchase the product based on the specifications offered. Promotion strategy Promotion is usually viewed as been a core aspect in a marketing strategy and more so when to comes to commodities such as electric bikes. Stealth electrical bikes use a number of promotional strategies to attract the customers to perceive their commodities in a positive manner (Westwood 2006). Promotion therefore acts as the only available means for Stealth electrical bikes to make it known to their customers of their products and any other new developments that may have occurred. Promotion offers Stealth electrical bikes with a way of creating an awareness of the products that they have control over. Through promotions Stealth electrical bikes is able to provide their customers with information about the company, products that sway the discernment of consumers positively (Ruskin-Brown 2006). Stealth uses some sales promotion, personal selling and publicity. Stealth electrical bikes out several advertising campaign through various media such as the television and the internet. The advertisement of Stealth electrical bikes applies different advertising strategies in the aim of swaying the customers to buying their electric bikes. The advertisements are slotted in breaks after the program and thus customers are able to know about the products offered. Stealth electrical bikes place several print ads such as in the newspapers; Stealth electrical bikes also use other methods such as billboards and posters. Stealth electrical bikes ensure that their advertisements are in line with the company positioning strategy and thus they tend to control their advertising closely (Stealth official website 2012). Stealth electrical bikes also use some sales promotions as an inducement for the customer to purchase their electric bikes. Through the sales promotions the company aims at generating measurable and specific response for the electric bikes. The sales promotions usually include discounts, samples, exchange offers and coupons. Stealth electrical bikes employs one of the above methods based on the core objective of the promotion been carried out (Onkvisit and Shaw 2008). Public relations and publicity Public relations are termed as the set of activities that are carried out by an organization so as to create and maintain a good public image in the eyes of all the stakeholders. The stakeholders are the media, suppliers, government agencies, employee, the general society and also any other potential investor. Another publicity initiative that the organization has adopted is the company’s official website that offers all the information that is needed by the stakeholder’s and the customers (McDonald 2002). Though the website Stealth electrical bikes is able to offer good quality and also have better relations with the customers since they tend to serve the needs and demands of the customers well. Action Program According to Ciopi 2010, action program are the real budgeted plans. Some of the action programs plans to be implemented in the coming year are sales promotion, offering discounts, publicity, advertising, personal selling and product description. Task Who (responsibility) Where (place) Start date Completion date Expenditure Sales promotion Sales representative Queensland and New south Wales 1st January 2013 29th February 2013 $560 Discounts Retailers and wholesalers At retail and wholesale outlets 1st march 30th April &479 Publicity Media and Websites Websites, billboards and Television. 1st may 2013 30th June 2013 $265 Advertising Marketing Manager Queensland and new south Wales social media 1st July 2013 31st August 2013 $ 371 Personal selling Sales representatives At regional distribution centers 1st September 2013 31st October 2013 $154 Product demonstration Region managers Regional centers 1st November 2013 31st December 2013 $264 Total $1533 The total budgeted cost of promotional campaign is $1533 Recommendation Focus on electrical bikes The company has a wide range of products and some of the competitors seem to be better in the industry. Stealth electrical bikes main disadvantage tend to come along as a result on the limitation that they cannot be used for long distance trips and also lack of spare parts in the market. The electrical bikes are termed as one of the fastest growing market in Queensland and also in New South Wales, and thus stealth stands to benefit enormously if it focuses a considerable part of the firms resources on to this market since to seems to have an enormous potential (Kotler 2003). Strategic takeovers Once stealth electrical bikes concentrate on their electrical bikes business it ought to aggressively aim at overtaking its competitors in the market. By this takeover the company will be able get a large market share and they will be able to control their prices and also take advantage of the economies of scale (Kotler et al. 2007). The company ought to target the small companies operating in the industry for any likely takeover. They should also target other close competitors who seem to have financial troubles for any merger and acquisitions possibility. Enhancement of quality of their products The positioning strategy that is applied requires stealth electrical bikes to maintain reliability and also high quality when it comes to offering their products in the all markets so as to entice the customers. In response to this all the products auto to be checked before they are distributed to market so as to ensure that quality and reliability is enhanced at all times (Jobber 2004). Conclusion Stealth electrical bikes which are of high quality assist stealth to stay among the top sellers of electrical bikes in various parts of the world. The firm also has the ability to influence their customers to belief that they offer products that are of high quality and thus quality stands as an important competitive edge for the organization. Stealth has been able to achieve this through the various strategies that they have been carrying out which includes but are not limited to pricing, promotional, positioning and products strategies. Over time the company has been able to develop products and communicate the idea in an effective manner to both their current and prospective customers. As a provider of products which are ranked among the best in terms of quality, stealth seems to be justified in offering their bikes at premium prices in the market. Its justification is based on the fact that their bikes are of high quality when compared to the bikes that are manufactured by their competitors which are at times within the same price range. Is stealth maintains the high quality of their products it is evident that the customers will always be willing to pay high prices for the products that are developed by the company. References Albaum, D & Strandskov, J 2005, International Marketing and export management, 5th edn, Person Education Limited, Cambridge Armstrong, G, Adam, S, Denize S & Kotler, P 2012, Principles of Marketing, 5th edn., Pearson Australia, Frenchs Forest, Australia. Buczynski, B, 2012, The stealth Bomber: An electric bike for the dark Knight, Tuttle Publishers, United States. Choe, S, & Orr, P 2011, 'Developing An International Marketing Plan With Online Resources: A Student Project', Global Education Journal, 3, pp. 95-106, Education Research Complete, EBSCOhost, viewed 23 November 2012. Ciopi, M 2010, 'Marketing Plan for the Development of Historical, Cultural and Wine Tourism in Prahova', Petroleum - Gas University Of Ploiesti Bulletin, Economic Sciences Series, 62, 2, pp. 116-123, Business Source Complete, EBSCOhost, viewed 23 November 2012. Jobber, D & Fahy, J 2006, Foundations of Marketing, 2nd Edn, McGraw-Hill Education, Berkshire. Jobber, D 2004, Principles and Practice of Marketing, 4th edn, McGraw-Hill International ltd, Berkshire. Kotler, P 2003, Marketing Management, 11th edn, Pearson Education, New Jersey. Kotler, P., Brown, L., Adam, S., Burton, S. and Armstrong, G. 2007, Marketing. 7th edn, Pearson Education Australia, Sydney McDonald, M 2002, How come your marketing plan aren't working, Kogan Page limited, London Onkvisit, S & Shaw, J 2008, International Marketing: Analysis and Strategy, Routledge, New York Royne, M 2002, Promotion of services, Emerald Group, London. Ruskin-Brown, L 2006, Mastering Marketing, 2nd edn, Thorogood, London. Stealth official website 2012, available at Tony, P 2000, Strategic Marketing: An Introduction, Routledge, London & New York. Van, M. 2012, Stealth Bomber Electric Bike. Aether Journal. Retrieved from Read More