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Folding Bikes marketing strategy in Germany

Running head: folding bikes Strategy marketing in Germany

Folding bicycles marketing strategy in Germany

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Introduction:

The folding bike today would be a great introduction in Germany, also known as the Federal Republic of Germany. Types of urban bicycle Folding bicycles are useful, urban performance bikes, road bikes and mountain bikes. There a competitive boost of motivation to innovate to be simpler, lighter, faster and stronger. Most of all Germans active life styles of life and are "green products". These bikes can help people keep track of their daily training, weekly gas bill and carbon footprint and how to help make it easy to any economic, environmental pressures, or the life they have. From youth to old age almost anyone can ride a bicycle and Germans are big on family. Moreover, according to CIA – World Fact Book (2009) Germany is "the largest economy and second most populous nation (after Russian), which provides marketers a great opportunity there.

II. The market

A. The target market

In Germany, public transport is very popular and driving is a luxury rather than a common means of transport. Therefore, instead of people who have to walk or drive a bus, train or subway, you can use the folding bike as a convenient and efficient way to reach your destination.

i. Size and characteristics of the target market

From July 2009, the total population of Germany was estimated at 82,329,758 (CIA – World Fact Book, 2009). 13.7% of the population of 0-14 years, 66.1% of the total population are between 15-64 years and 20.3% of those age 65 and older. The average family income in Germany is $ 35,400 (EUR 23604.72), and because the cost of the bike folding bike has guided the households that have an average income of at least 30,000 euros. (CIA – World Factbook, 2009).

ii. Target market segmentation:

1. Age group:

The group age of the folding bike is the youth and young professionals between 15 and 64 years, people aged 15 to 64 years amounts to 54,384,520, which is 66.1% of the population Overall, given also that most companies and universities are located in the city and many young Germans to pursue higher education, therefore, if the folding bike is marketed to this age group, many people see an advantage in that and decided to invest in making the same product gain popularity quickly.

2. Genre:

Those aged 15 to 64 years 66.1% amount of the total population, the number of men in this group age amount of 27,707,761 and 26,676,759 number of women, this is approximately a 1:1 ratio of males and females in this market and therefore the folding bike is headed both sexes do not differ one over the others.

3. Geographical location:

The majority of companies and universities are in the city, the target location for the introduction of the product will be big cities like Berlin. In this way more people will be exposed to the product and by Therefore the product easily penetrate the market and gain popularity.

iii. Fundamentals of options in the target market:

The logic specific geographic area of the market is that most universities and businesses in major cities, the age group is the target given These are individuals who are facing challenges of transport to travel to work and school. Both men and women are the target and this is because the bicycle is a mode of transport if in both sexes.

B. Competition

Direct and indirect

As noted, the direct jurisdiction over the sale folding bicycle in Germany is expected to come from the company by the name Riese and Mueller. According to a report in 2007, reportedly selling 5000 bikes annually. The report also shows that the Germans buy four million bicycles per year. This indicates that therefore it is only a small percentage of total bicycle sold (McClellan, 2007).

The major indirect competition is expected in folding bicycles marketing in Germany is expected to come from the non-folding bikes. There are many types of brands of this type of bikes that are in the German market. Most of them are at prices far much less and the fact that most of the German population is the most price sensitive than other features such as brand recognition, they have a great challenge. Also motor bikes are more powerful than bicycles and with the Germans for being economically empower people prefer them. The competence of the different brands of motor vehicles is also expected to occur in Germany.

C. SWOT

Strengths:

Differentiation product by introducing a folding bike

Performance due to the large population in Germany, who face challenges in transport demand

Opportunities:

Expanding into new markets

The lower prices to boost demand

Product differentiation

III. Marketing strategy

a. Distribution

Michael Roos (2005) found that in Germany "Geography is more likely to influence the spatial distribution of production of the distribution of consumption" regulations (p. 605). Germany bureaucratic procedures to encourage foreign investment, but at the same time can be quite complicated. "Although not discriminatory in the classic sense, regulation Government is often complex and may offer a degree of protection to established local suppliers. "Germany has" few formal barriers to U.S. trade or investment interest "and" German government and industry to actively promote foreign investment in Germany "(German Tariffs, Trade Taxes, Marks, 2000).

b. Retail Outlets

The distribution of our folding bikes should be very simple. We will present our Bicycles in Germany so it will be very cheap and then distribute to retail outlets. The type of retail outlets which will focus on the independent bicycle dealers. In Germany there are two independent bicycle dealer cooperatives called ZEG mass and Rico. BICO is a coalition of more than 500 bicycle dealers from all over Germany (Potente Verbundgruppe). ZEG is a cooperative bike shop around 1000 in Europe. ZEG has about $ 2 billion in annual sales. provides a list of about 100 bikes and bicycles related suppliers and properties that have an inventory of 41,000 bicycles (Crenshaw, 2008). This is very important to our company because we can go through one source to reach hundreds of bicycle retailers. We must join with their cooperatives to enable them to our bikes in all its outlets.

distributors independent bicycle (EII) market share was 54% in 2006. Two wheels German Industry Association (ZIV) Rolf Lemberg GM estimates that the independent Bicycle participation in terms of sales value in 2006 was € 1,530,000,000 total bicycle, which is "more than 71%." According to ZIV this underlines a trend towards high-value purchases the product in the independent bicycle dealers. Do it yourself and the department store market share was 37% and sales online, including sales of websites IBD were 4.5%. share of mail order suppliers was the least at 2.5% (Bike Europe, 2007). These numbers show that not only should shop for bicycles originating in an independent bicycle dealer, but these are usually higher end purchases. Our bike will be an end highest price, so sales of bicycles in independent bicycle dealers gives us the best opportunity to capture the market we are targeting. We do not want to confine only work with the cooperatives, but instead of working with the largest independent bicycle many dealers as possible.

Trade shows are another distribution method you want to use. The fairs are very important in doing business in Germany because they are business events where contracts are negotiated and made tenders. Eurobike is held annually in Germany and is considered the most important fair for the bicycle industry. "The international trade fair ended on Saturday Bicycle with 39 152 professional visitors from 75 countries (an increase of six percent), 21,000 cycling fans pay an open day (2008: 18,000), and 1556 journalists from 36 countries (Eurobike, 2009). EUROBIKE Attend fairs and would be a very valuable resource to get exposure for our product in the German market and to seek orders from a bike shop.

c. Intermediaries

The easiest way to get into the bicycle business would working directly with independent bicycle dealers and not use any wholesalers, resellers or distributors. bike shops or order the bicycle as orders come in for them or if it is something they think they will be able to sell quickly you could order stock to keep on hand for walk in purchases. This allows our company to maximize profits and minimize costs. The cost of less between production and purchase the highest profit potential for our company and dealers sales of folding bikes.

d. Promotion

Objectives and mixed media

The company placed ads in magazines like DMEuro and approach The money, which is a German version of Money "magazine we have here in the States USA. In this review, the folding bike is compared with other competing products on the market and provide readers with financial information about the product, such as: Why is a good product to invest? Also be posted on a bicycle (German Edition), a magazine devoted to bicycles, Neue Revue, a weekly update of what is happening in Germany and the lifestyle there, and men's Health (Edition Germany). Commercial advertisements will be posted on the sports channels as the Super Sports Network or My Sports Germany and play at night when it most people are in tune and will also play several times during the big football matches.

Overall, Germany has a 4-season climate, but the time is different between regions, therefore, advertising and promotions will differ between cities like Berlin and Munich. In Berlin, summers are usually warm and sunny, with very little rain, however, the winters can get very cold, "their" season of snow and frost (Hochstadt). As Therefore, more publicity will be carried out during summer rather than winter. In Munich, where the climate is pleasant throughout, the foldable bicycle use will increase, so Therefore, promotional offers and advertising will be stronger in this part of the region.

To introduce the folding bike in Germany, we will place a notice of entry into the Neue Reveue and a month in advance. Each week, the announcement in the Neue Reveue provide readers with the specifications product, date of launch and stores that sell them. We'll put the same ad in bicycles, but Bicycle magazine subscriptions published monthly, we will place ads in this magazine two months before launch. In this way, it will be exposed to more people, especially those who are interested on bicycles. After the product is launched, we'll put a notice on the health of men, DMEuro and Focus Money.

e. Message

The media customarily used advertising to reach the market for folding bikes and all other cars in general, Germany is the media. This is due to the fact that one is able to give detailed information about the product being marketed a relatively cheaper price. The objectives of the folding bike advertising would increase its popularity and promotion of the product to the target market. Leading the growing popularity, we intend to more people (both inside and outside the target market) to be exposed to the benefits of the product. The message in all ads announcing it will focus on product benefits. It will be designed to promote faster travel, increased leisure and better health.

f. Internet Advertising

The World Wide Web is increasing its popularity by the minute and people spend more time surfing the Internet to make it look television or browsing though magazines. Therefore, the placement of ads on social sites such as the face or My book will help promote bicycle space Foldable and more people will be exposed to it. In addition, advertisements can also be placed in TVSPLANET.com. Sports is a big part of German culture, however, due to hectic schedules and busy life, people tend to follow sports online. Place an ad in tvsplanet.com, where the Germans have access to the TV, a channel German sports will be beneficial for the marketing of the folding bicycle.

g. Sales Promotions

Sales Promotions be used to browse people to invest in the product. Our internet links will direct customers to our website where after filling out a short survey, have the privilege to print the voucher to receive a discount on the purchase of the folding bicycle. In addition, we will organize sweepstakes drawing at all major colleges and universities for students to enter for a chance to win a folding bike free.

The Internet link will provide customers with a voucher of 50 € for a brand new folding bike. The estimated amount of people who will print this voucher and use it to buy the product is 1,000 people. Therefore, the amount can spend on promoting Internet sales is € 50,000.

Sales staff hours

Due to the fact that we are a young company Created in Germany, we will not have a sales force, but will be selling our bikes directly to dealers. retailers will be educated with knowledge relating to our product so they can offer their customers all the necessary information for our product. In the future if we begin to grow we will reconsider this decision and build a sales force at that time.

i. Advertising

As a folding bike launches in Germany, the budget for the creation advertising will be relatively small. Due to the fact that people pay special attention to the details of the products is very important that all information as possible is given on the product in the product offering (Gianfranco, 2001). Therefore, as noted earlier, most of the advertising budget is devoted to the creation TV commercials and magazine ads for the folding bicycle. This is the fastest and most efficient way to expose this product to the Germans.

j. Scope and Motivation

In general, the promotion plan will focus specifically to the target market for many reasons. First, Neue Reveue and biking are some of the best-selling magazines in Germany, therefore, the placement of advertisements in these magazines are exposed Germans the product quickly. In addition, the notice shall include the specifications to inform readers with details of the bike, which is what the German company looks for when Display the print ads. Second, television commercials will air during peak hours of the day and in the channels of sports, mostly. Like most 20-35 years old tune boys in sports entertainment channels, outdoor ads in the folding bike during rush hours in the channels Sports are expose to more people. In addition, young men spend a lot of time surfing the Internet-wide for either educational or professional purposes. Therefore, placing ads on the Internet definitely expose the product to consumers concerned. Last but not least, raffle drawings at all major colleges and universities will be very vital in promoting the product to the target market, and most people who attend college are between the ages of 20 and 25. In addition, many universities are around other businesses, as young professionals ages 25-35 will hear about the promotion offer simple word of mouth. Thus as the promotional plan to reach and motivate the target market to invest in the folding bicycle.

B. Stage of PLC

The product is in the introductory stage in its life cycle. The product thus should be very affordable for most consumers to enter the market and to counteract the effect of face competition (Jacobs & Stone, 2001). The product must be of high quality and good brand to attract and maintain a broad customer base. First, be distributed selectively among consumers. The product should be promoted to raise awareness of its presence in the market.

C. relative advantage

There are many advantages of the product-folding bike. It is more economical due to low maintenance costs. It is also free of contamination, it does not use fuel. It is compatible as the majority of the population is between 30 and 50. This range contains the physically able.

Support D. Complexity, Trialabilty, and Observability

Due to shortage of space in urban areas, where the majority of the population, the bike Folding is relatively smaller than other vehicles. It is easy to use, requiring minimal training to operate. Transport infrastructure is well developed and therefore the use of the product would be easier. Moreover, the product will come in different sizes and colors to suit different needs and preferences of consumers.

E. The product and the competition:

The product is easy to operate, will lighter, faster and stronger in comparison with the products on the market. The product will also be better than competitors, since it will be the only Folding bike hand built German made, the product will also be high quality, being that attract and maintain a strong customer base. The product will also face competition from other modes of transport and the advantage is that the product is economical and free from contamination and therefore easily penetrate the market.

The product is also sold at an affordable price to win market size, low

F. Product name and logo:

The product name and logo represents both about why the product is better than other products on the market, the product name and logo must contain words are related to something well known and at the same time, related to the product, the best product name is the German word for a bicycle "fahrrad" and will also include the German name for cheetah "Gerpen, hence the product name is" Fahrrad Gerpen, "this will give an indication the bike is so strong and fast as a cheetah, so the logo contains an image of a cheetah and a person on a bicycle.

Package:

Since the product is a folding bike on the package size will depend on the size of the bike, however the size of the package will easy fold to save space and allow easy transport and storage. The product name and logo to comply with labeling requirements and required not the copyright laws of chlorine and there is no warning that it should indicate on the label.

H. Product Features

The product is classified in sizes including small, medium In general, this will allow the user to select the right product they prefer and also on prices will be different, this will ensure that there will be a product for each income group on the larger sizes will be for higher-income workers.

I. Warranties:

A six-month warranty will be provided to consumers, the products must be checked free of charge for the first six months after purchase, but only if the damage is not due to negligence, but the company will continue to provide services after six months at a lower cost compared to its competitors.

J. The main problems for the acceptance of the product:

Due to advanced technology and slow change of preferences, the product complies with the difficulties in the acceptance. The aging of the population is reluctant to accept of, due to their physical limitations and existing products on the market could make it less acceptable compared to other products on the market.

K. The product and target market needs:

The product meets many needs of the target market, which is cheap (the high level of scale Life of cheaper products), environmentally friendly (the Germans are selective buyers) and requires minimal storage space (most of the population living in urban areas leading to a shortage in space).

Conclusion

great economy of Germany and the population provides marketers a great opportunity there. "Cyclists are directed further, bagging their bikes to take them on trains or buses. And companies are responding to this new trend, offering products and services that meet these "trips" riders "(Folding bikes, 2009). The availability of media, low cost of advertising, and because there are no laws that affect the distribution of the product production folding bikes should be a relatively profitable in Germany. In addition, the Germans, being an information society largely meeting persuades the products they buy will be happy to know these folding bikes are becoming more attractive, easier to get, and softer to handle, so drivers will no doubt be more to come and go in the "cover".

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