Electric Bicycle Market Description - Term Paper Example

?Marketing Table of Contents II. Current Marketing Situation 3 Market 3 Product Review 4 Competitive Review 5 Channels and Logistics 5 V.Marketing Strategy 6 Positioning 6 Product Strategy 6 Pricing Strategy 7 Distribution Strategy 8 Marketing Communication Strategy 8 Marketing Research 9 Marketing Organization 9 10 References 11 Bibliography 13 II. Current Marketing Situation Electric bicycle which is also acknowledged as e-bike is a kind of bicycle that comprises an electronic motor in order to power the vehicle. Electric bicycles are provided with rechargeable batteries for running on roads and are able to travel around 15 to 20 mph i.e. 24 to 32 km/hr. It has been apparently observed that the usage of e-bikes has been increased drastically in recent business context. This is owing to the reason that e-bikes deliver extreme mobility as well as health benefits to the disable or older people. Moreover, the e-bikes have become a better substitute for cars that is quite cost-efficient as well as effective. It has been viewed that the business market of e-bikes is growing tremendously in Australia that is mostly used by the youths, older people and retirees among others as an effective transportation system. With regard to determine the current market situation in Australia, it has been viewed that the regulatory authorities belonging to Australia have challenged towards the execution of e-bikes. It is obvious to the fact that e-bikes consume considerable portion of energy in comparison with any conventional bike (Electric Vehicles Pty Ltd., 2010). Market Description With regard to determine the market situation of e-bikes in Australia, it has been viewed that the growth rate of the usage of bicycles amid the people aged 9 and above has been recorded to 37.5% which is quite less as compared to previous 25 years. Moreover, it has also been observed that the intensification of bicycle trips has reached to a level of 20.9% which is nearly a third of population growth in Australia (Scribeworks, 2011). On the basis of the above discussion, it can be stated that Stealth Electric Bicycle should introduce its broad assortment of products in the business market of New South Wales and Queensland in Australia concerning the market situation of e-bikes and presence of the chief market competitors. Product Review The different products of Stealth Electric Bicycles can be reviewed by focusing upon certain important dimensions that include Frame, Motor, Transmission and Front Suspension. Frame One of the products of Stealth Electric Bicycles is Fighter Electric Bike which is improved by alertness and of less weight in structure. Accordingly, the frame is smaller and less heavy in comparison to other products like Bomber. The Fighter electric bikes also claim a less weight in swing and torque arms with adaptable wheelbase for comfortable riding (Stealth Electric Bikes USA, 2011) Motor The company manufactures the DC hub brushless motor having only a single stirring part which is between the motor and the ground that facilitates control, efficiency and reliability without sound radiation (Stealth Electric Bikes USA, 2011) Transmission Pedal power of Fighter electric bikes is conducted through gearing interior support from bottom. gear shifting that provide a speed from low to high. The floating drive train eradicates the requirement of maintenance and provides less sound effects as well as increases efficiency of the pedal power (Stealth Electric Bikes USA, 2011) Front Suspension The company provides the facet of front suspension in all of its products especially for the riders who are adventurous. It aims to develop its customer base by introducing such quality features in its every product (Stealth Electric Bikes USA, 2011). Competitive Review The competitors in the markets of Australia relating to e-bikes are many. The competitors in the bicycle industry include Australian Electric Vehicles and Electric Bicycle Co. that provides ample competition in the market. It has been observed that Australian Electric Vehicles is working in the sector over twenty five years. Conversely, The Electric Bicycle Co. is regarded as one of the biggest manufacturers as well as importers of superior quality of e-bikes in the business market of Australia. These two companies can be viewed as the major business market competitors of Stealth Electric Bikes especially in Australia (The Electric Bicycle Co., 2007). Channels and Logistics Stealth Electric Bikes is a distributor of electric mountain bikes in around 12 countries. It delivers its products and performs its commercial activities through online basis. The different products of the company are distributed through campaigning of social media and online mode.. Processing of retail dealerships is also been initiated in the process of distribution channels and logistics. The company distributes its products to different retailers such as DTR Motorsports, Blue Bear Cycles, Javelina Cycles that are introduced in the business market for the customers and meets the demands of the customers (Stealth Electric Bikes USA, 2012) V. Marketing Strategy The marketing strategy for Stealth Electric Bicycle in order to introduce its broad array of products particularly in the business markets of New South Wales and Queensland of Australia can be based upon certain imperative factors. The factors comprise positioning, product, pricing, distribution, marketing communication, marketing research and marketing organization. Positioning Stealth Electric bicycles are considered to be the hybrid sort of electric bikes which are readily accessible throughout the globe. In order to introduce the bikes in the market of New South Wales and Queensland of Australia concerning positioning strategy, the company can launch its different e-bikes with certain added features such as superior performance motors and powerful pedals among others. Moreover, with regard to positioning strategy, the company can make its e-bikes more convenient as well as adaptable for both professional and personal usage (Elance, Inc., n.d.). Product Strategy In relation to product strategy, the company i.e. Stealth Electric Bikes needs to focus much upon developing its e-bikes in a customizable manner so that the products get fit with the preferences of every individual customers. Moreover, the products of the company are to be launched concerning the market conditions or trends particularly in the areas of New South Wales and Queensland of Australia. The different technological advancements that introduced by the company such as the creation of DuraRazorback tires, Regen Breaking Systems and Carbon Fiber seats can be the most effective features that can support the company to successfully introduce its e-bikes especially in the business markets of New South Wales and Queensland. It has been viewed that the company took the initiative of introducing standard as well as attractive colours of its different e-bikes in order to reach the attention of the customers by a significant level (Vocus PRW Holdings, LLC. 2012). Thus, it can be stated that the new technological advancements as well as innovative features of e-bikes would certainly enable Stealth Electric Bikes to penetrate into the business markets of New South Wales and Queensland of Australia by a considerable level. Pricing Strategy The aspect of pricing strategy plays an imperative part in devising marketing strategies of any particular company. It is such a kind of strategy that determines the profitability as well as the productivity of the companies at large. In this regard, it can be stated that one of the major contenders of Stealth Electric Bikes is The Electric Bicycle Co. that provides attractive prices for its products to the customers. With regard to pricing strategy, Stealth Electric Bikes can price its products i.e. e-bikes that are quite affordable as compared to the other contenders of the industry. However, it can be suggested that while determining the pricing strategy, the company should focus upon quality rather than price as it can affect in its profitability by a greater extent (Elance, Inc., n.d.). Distribution Strategy The facet of distribution strategy is considered to be the other significant marketing strategy of a company that determines the accessibility of products in the business markets as well as the customers. In relation to distribution strategy, Stealth Electric Bikes can target the websites in order to sell its different categories or models of e-bikes. Moreover, apart from introducing and developing websites, the company can also build a strong association with its existing dealers for the purpose of raising its sales especially in the business markets of New South Wales and Queensland of Australia (Elance, Inc., n.d.). For a company like Stealth, it is required to channelize its distribution pattern through executing different websites, forming a strong association with its existing dealers and most significantly increasing along with developing interrelation with new dealers. Thus, the aforementioned initiatives can ultimately support the company to introduce its e-bikes in the business markets of New South Wales and Queensland of Australia successfully and also can raise its sales by a considerable level (Lev Association, 2012). Marketing Communication Strategy The strategy of marketing communication supports the different companies in developing their respective brand awareness. It has been viewed that most of the business organisations use this particular strategy with the intention of retaining their existing customer base and preserving strong association with the suppliers as well as the customers. With regard to the strategy of marketing communication, Stealth Electric Bikes can employ the approach of information acceleration. This strategy is related to web-based marketing policy by which the customers can acquire or avail necessary information about the product features of the company. Moreover, this strategy is quite inexpensive that can be suitable for the company to be implemented in the business markets of New South Wales and Queensland. By executing this strategy, the company can increase its sales and also can enhance its profitability at large (Garling, 2000). Marketing Research Marketing research is an important aspect in supplying products in different business markets. Through market research, it is possible to gather feedbacks about the liking and disliking of the customers regarding the products. In this similar context, the company i.e. Stealth Electric Bikes can conduct a survey about its products that would be launched in the business market of New South Wales and Queensland belonging to Australia. This survey might help the company to identify its target customer segments along with the preferences of the customers by a considerable level (Muetze & Tan, 2007). Marketing Organization Marketing Organization is viewed to be an important element in devising marketing strategies for a particular company. For introducing Stealth Electric Bicycles especially in the areas of New South Wales and Queensland of Australia, it is required for the company to set a dedicated as well as skilled team of professionals that can handle the overall operational functions of the company effectively. In this regard, the company can engage the professionals in different departments such as marketing and sales, advertising, promotion and human resource (Elance, Inc., n.d.). A graphical representation of this set of team has been provided hereunder. References Electric Vehicles Pty Ltd., 2010. E-Bikes Today. Home. [Online] Available at: http://www.currietech.com.au/Articles-E-Bikes.shtml [Accessed December 28, 2012]. Elance, Inc., No Date. Marketing Strategies. Electric Bike Marketing Plan. [Online] Available at: http://ws.elance.com/file/Marketing_Plan_-_Powacycle.pdf?crypted=Y3R4JTNEcG9ydGZvbGlvJTI2ZmlkJTNEMzI0OTk0NjIlMjZyaWQlM0QtMSUyNnBpZCUzRDI1NDk4NjI= [Accessed December 28, 2012]. Garling, A., 2000. Marketing Segmentation, Marketing Communication Strategies and Electric Vehicle Drive. Marketing Communication Strategies. [Online] Available at: http://www.kfb.se/pdfer/R-00-18.pdf [Accessed December 28, 2012]. Lev Association, 2012. Electric Bicycle Industry Faces Changes in Distribution and Technology. Analyzing the E-Bike Future. [Online] Available at: http://levassociation.com/assets/Ed-Bike-Europe-1-article1-1.pdf [Accessed December 28, 2012]. Muetze, A. & Tan, Y.C., 2007. Electric Bicycles. A Performance Evaluation. [Online] Available at: http://www2.warwick.ac.uk/fac/sci/eng/staff/am/journalpublications/04283505.pdf [Accessed December 28, 2012]. Scribeworks, 2011. Mandatory Bike Helmet Laws: Random Facts. Australian Cyclist Numbers And Population 1985-86- 2011. [Online] Available at: http://www.cycle-helmets.com/helmet_statistics.html [Accessed December 28, 2012]. The Electric Bicycle Co., 2007. Electric Bicycle Co. Tomorrow’s Transport Today. [Online] Available at: http://www.electricbicycle.com.au/ [Accessed December 28, 2012]. Stealth Electric Bikes USA, 2011. Power to the Pedals. Fighter. [Online] Available at: http://www.electricmotorsport.com/store/pdf-downloads/Stealth_Fighter_Electric_Bike.pdf [Accessed December 28, 2012]. Stealth Electric Bikes USA, 2012. United States of America Retailers. Associations. [Online] Available at: http://www.stealthelectricbikesusa.com/retailers.html [Accessed December 28, 2012]. Vocus PRW Holdings, LLC., 2012. Stealth Electric Bikes Introduces New Upgrades and Customization Options for 2013. Front Page. [Online] Available at: http://www.prweb.com/releases/ronnie/renner/prweb10259496.htm [Accessed December 28, 2012]. Bibliography Ha, T., 2008. The Australian Green Consumer Guide: Choosing Products for a Healthier Home, Planet and Bank Balance. UNSW Press. Malhotra, N.K., 2010. Marketing Research : An Applied Orientation, 6/E. Pearson Education India. Read More