Marketing Plan – Metro Bikes G R O U P N O . 5

D H E E R A J R A J AWAT

K A N I K A C H A N D N A

P R A N J U L G U P TA

Executive summary Flexo bikes are bicycles designed to allows users to easily transport the bike using less space when the bike is “folded” in to a compact size

Premiere manufacturer of folding bikes in India

The versatility of a folding bike is also appropriate even for air travel

The objective is to export 50,000-1,00,000 bikes to USA annually

Situation analysis

1) Market summary: Flexo Bikes will leverage the information of US market and target customers to better understand who is served, their specific needs about quality and other features of the bikes like color, mileage, seating etc.

2) Market needs:• Quality

• Selection

• Accessibility

• Customer service

• Competitive pricing

Situation analysis cont.…3) Market analysis:

•It was found that 21% of the respondents used bicycles, after bus, walking and cars

•The 85 % of respondents (people who rode conventional bikes) that currently take their bike on the train would consider using a folding bike instead

4) Competitors:

•Japanese manufacturers

•European manufacturers

SWOT analysis

Strength

• Reduce parking demand

• Reduce transportation costs and encourage sustainable transportation

• Easy to maintain and reliable

• Sales and services are convenient

weakness

• Preferable for places with low traffic

• Safety factor is low

• Not very durable

SWOT analysis cont...

opportunities

• Enormous potential to operate in the global market

• Scope of innovation is high

threats

• Fluctuating demands due to economic factors

• Growing competition

Marketing strategy1) Objectives:

•Increase repeat customers by 4% per quarter

•Create general awareness of Flexo Bikes within the industry

•Increase the catalog of products by 15% a year by skillfully communicating to the distributors the success of this business model

2) Target markets:

•Existing transit riders who use full-size, conventional bicycles to connect to transit

•Existing single occupant drivers

•Existing transit Park-and-Riders who may give up their parking space in favor of a folding bike

Marketing strategy 3) Positioning:

•Flexo Bikes will position themselves as the premier bike, they would establish stores in all key markets in the US

•By offering value-added services which provide people with better, Flexo Bikes is developing value that creates a steady flow of customers

4) strategies:

•To position themselves as the premier source for bike and bike component deals within the U.S.

•Create customer awareness regarding the products offered

•Develop the customer base, and finally work toward building customer loyalty and repeat business

Marketing mixFlexo Bikes marketing mix is comprised of the following approaches to pricing, distribution, advertising and promotion, and customer service

•Pricing: Profit margin, the forecasted period that the product will be inventory, and the availability of the product to the target markets

•Distribution: All products distributed from Flexo Bikes warehouse to any shop in the U.S.

•Advertising and Promotion: Multi-pronged advertising campaign to generate visibility

•Customer Service: Emphasis on customer training to achieve profits

Marketing research The primary goal of the survey was to determine people’s willingness to

1) Use Flexo Bikes product and

2) Their keenness about the brand

It was also found:

Portability is the most important attribute of a folding bike when used in conjunction with transit

Important that bikes are available for purchase from local vendors to ensure a high level of service and support

Financials Objectives:

A growth rate for the first two years.

An increase of the profit margin by 5% a year

Risks and contingencies

•Offer trial periods.

•Other companies as option.

Companies may not want to partner with our company

•Focus on international sales

Stagnant US demand for folding bike category

•Clause in our license agreement that will prohibit competition for military contract

Trek tries to earn military contracts

•Change promotional strategy to highlight differentiating quality and performance factors

Flexo bikes is perceived as another folding bike

Thank you