Professional Documents
Culture Documents
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- Marketing Managemen t
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MKT40560
E-Bike
Marketing Strategy 2015
David McCarthy
Madeleine Byrne
Alexander Daniel
Chang Zheng
Akash Singhal
Table of Contents
1. TERMS OF REFERENCE: 3
2. EXECUTIVE SUMMARY: 3
3. BUSINESS BACKGROUND 4
BUSINESS MISSION 4
PEST ANALYSIS 5
6. SWOT ANALYSIS 13
7. MARKETING OBJECTIVES 14
8. CORE STRATEGY 15
9. MARKETING MIX 16
PRODUCT 16
PRICE 17
PLACE 19
13. FINANCIALS 26
REFERENCES 26
APPENDIX 29
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APPENDIX 4: D8 DESIGNED DONNYBROOK BIKES KENBAY FLYER 33
1. Terms of Reference:
The objective of this project is to develop a marketing plan for electric bikes (E-Bikes), at
Donnybrook Bikes. This marketing plan endeavours to:
Strengthen Donnybrook Bikes brand value with respect to customer service and after
sales services.
Introduce E-Bikes to a traditional store.
Increase customer volumes and their awareness of the E-Bike.
Ultimately, increase sales volumes and increase profits.
2. Executive Summary:
Donnybrook Bikes was established in June 2014. The business is an owner-managed enterprise
which is operated by seasoned industry professionals, Andrew Persons and Ruairi Persons.
Between them, they possess over 15 years, experience in bicycle sales and repairs. The business
is one of south county Dublins leading bicycle specialists and is located in the prime upmarket
location of Donnybrook, Dublin 4. Donnybrook Bikes sells both new and second hand bicycles
in various shapes and sizes. Additionally, they offer a large selection of all-weather clothing,
safety accessories and spare parts and also provide a fantastic after sales service.
A comprehensive analysis of internal and external market factors was carried out in the form
of online surveys, street surveys, industry professional interviews and academic research
analysis. After analysing the brand, product and prospective area for growth, the overall
objectives of the marketing plan were set. These objectives include
3
The planned campaign will be titled, Southside E-Bikes and will consist of three phases,
which will adhere to a strict budget of 12,000.
These three phases will employ different guerrilla-marketing techniques where applicable.
Guerrilla marketing is an advertising strategy which focuses on low-cost, unconventional,
marketing tactics that yield maximum results (Creative Guerrilla Marketing, 2015). We have
placed particular focus on this marketing technique, as Guerrilla marketings philosophy aligns
itself with the companys expansion vision. The soul and spirit of guerrilla marketing is
small businesses with big dreams but tiny budgets (Levison, 2007). Guerrilla marketing puts
particular emphasis on keeping in touch with previous customers, exploiting creative-
marketing avenues and taking advantage of the sharing power of others. We have meticulously
designed these marketing plans with reference to Levinsons sixteen secrets of marketing.
To summarise, these marketing guidelines pay particular attention to committing to a plan,
viewing marketing as a long-term investment with patience and consistency as integral
fundamentals.
Subsequent to the completion of the marketing plan, a retrospective analysis of data will be
conducted to determine whether campaign objectives were met. The data will compare the
sales volume, social network interactions and site visits, both before and after the campaigns
lifecycle ends.
3. Business Background
Business Mission
Donnybrook Bikes aims to be at the forefront of Kenbay E-Bikes sales in south county
Dublin, with particular focus on the Dun Laoghaire Rathdown county council area.
Increase existing customer base and expand into new markets.
Increase Donnybrook Bikes online presence and reach.
Aim to further diversify their product range.
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Company Mission Statement
Donnybrook Bikes is a bicycle shop that sells both new and high quality, second hand bicycles
in south county Dublin. We use our extensive industry knowledge and experience to offer high
quality customer service and superior after sales services. We strive to go above and beyond
our customers expectations.
This marketing campaign is titled Southside E-Bikes. The marketing strategies employed
have been meticulously designed to maximise exposure and work within both the budget and
scope of the business, to reach the following marketing objectives:
1. Introduction of the Kenbay Swift E-Bike to Donnybrook Bikes, with projected sales of
300+ units for summer 2015.
2. Increase online network traffic by 25% through mediums such as Facebook, Twitter
and Instagram.
PEST Analysis
The PEST (Political, Economical, Socio-cultural and Technological) analysis is a business
measurement tool, created by Francis Aguilar, which examines the big picture factors of the
market. This methodology helps users identify potential obstacles and avoid riskier projects,
which are susceptible to threats outside of their control (Fahy and Jobber, 2012).
5
Funding & Cycle to Work scheme provides These financial incentives will
Grants greatly assist in reaching our
funding to aid the purchase of
sales targets
conventional or E-Bikes.
No planned end of this scheme.
European E-Bike motors must not have a power The Kenbay Swift is
Legislation output which exceeds 250 watts. compliant with this legislation.
Seasonality E-Bike sales are seasonal, increasing Our campaign will exploit this
Issues from the warmer spring and summer and will operate between April
months. and August.
As above.
Specific Bike sales are on the rise; this can be
Industry attributed to the increase in costs of
Factors petrol, insurance and road tax.
Taxation E-Bikes are sold at the standard tax rate Donnybrook will comply with
in Ireland. the national standard tax rate.
Specific to
Products
6
Social Cultural Influence on Business
Lifestyle Trends People in 2015 are more conscious of health trends and exercise. Bicycles
are now out selling cars.
Demographic Irelands largest age demographics are: 25 44yr olds & 45 64yr olds
respectively.
Changes
As these demographics grow older, as does our target audience, aiding
future sales (CSO.ie, 2015).
Urban Centre Our research indicates further sustained growth is estimated in Dublin over
Growth the coming years (Williams, 2015).
Media Views Mainstream media in Ireland have embraced cycling and would be
advocates for its success (Irish Times, 2015).
Major Events & The recession, along with the successful Cycle to Work scheme, has seen
increased sales of bicycles in Ireland (Sticky Bottle, 2015).
Influences
Endurance sports have increased in popularity, with cycling to the fore, in
events like The Iron Man Challenge.
Mental health cycle against suicide (Cycleagainstsuicide.com, 2015).
Maturity of Still in the early phases of this products lifecycle, the technology is
Technology constantly improving in relation to features like extended battery life,
reachable speeds and additional functionality.
Replacement The closest replacement solutions would be other E-Bikes brands and
Solutions attachable motors systems.
Overall, the PEST analysis suggests that there would be no significant interference from any
outside, uncontrollable force, which would hinder the sale of electronic bikes for the coming
twelve-month period.
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Political powers in Ireland have taken a positive stance towards cycling, indeed actively
promoting it with various policies and schemes. These policies include the cycle to work
scheme, building of cycle lanes and the national cycling road map.
The people of Ireland have had a turbulent number of years since the onset of the recession in
2007. Since then, the Irish people have had considerably less disposable income, yet the cost
of using automobiles continued to rise. However, this has led to bicycle sales growing to outsell
their four-wheel counterparts for the last number of years (Sticky Bottle, 2015).
As of March, 2015, Ireland has the fastest growing economy in Europe. Subsequently, an
increasing number of Irish people have more and more disposable income, no longer being
syphoned off to the extent it had been. We believe that this will lead to enhanced sales volumes
of the E-Bike, in the near future.
The sociocultural aspects, with respect to lifestyle trends, demographic change and urban centre
sprawl, are demonstrating continued change. This will add hugely to the marketing of our E-
Bike and future models, as the target audience will continue to grow, as people experiment
outside the traditional.
As stated in the technology section, competing electronic vehicles, such as electric cars and
Segways, havent gained much traction within the Irish commuter market to date. The EBike
technology has plenty of room for future improvement as the technology is most likely, still
someway from maturity.
Policies and Social marketing programmes are critical in achieving changes in peoples chosen
mode of travel (Brog et al, 2009). The Irish government has begun tailoring some of its
national transportation policies, to encourage the rise of cycling among the population. One of
the more prominent policies is the Cycle to Work scheme. This offers employees, savings of
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up to 1000 against the purchase of a bicycle and associated accessories, through their
employer (Citizeninformation.ie, 2015). As the Irish government continues to push these
policies in an effort to realise national targets, our potential market size will continue to grow.
The national target for commuting cyclers, is 10% of all trips by 2020 (National Cycling
Framework).
The areas with the most recorded cyclists in Dublin are, the City Centre with 23,265 and the
Dun LaoghaireRathdown council area with 6,869 (Ginty, 2012). These areas account for over
75% of the commuter cyclists in Dublin. Analysing the 2011 and 2006 CS0 figures, we can
conclude that the highest growth rate in bicycle use has also been in these areas. Dublin City
Centre bicycle use has increased to 7.75% from 5.6% and the Dun Laoghaire Rathdown area
has also shown considerable growth, rising to 5.25% from 3.85%.
Those working in the City Centre, are significantly more likely to walk or cycle, or take public
transport to work (Commins & Nolan, 2011).
Our potential customers have a number of alternative choices in terms of travel. In the Dun
Laoghaire Rathdown area, commuters can avail of numerous methods of public transport
such as, Dublin Bus, The Dart and The Luas. These methods have their own distinct
advantages such as, their pick up/drop-off locations, price and speed of travel. Additionally,
commuters can choose to use their own vehicles, taxis, motorcycles and bicycles as the
appropriate infrastructures are in place (Dlrcoco.ie, 2015).
Survey
In order to obtain further information on our target segment, we carried out an online survey.
We conducted this survey utilizing surveymonkey.com. We distributed this survey via email
and Facebook. Additionally, we brought printed surveys to Grafton Street and approached
people at random. The survey questions can be seen in appendix 3 to this report. A total of 74
people completed this survey.
The participants fell into the following age demographics:
1 person aged under 18
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62 people between the ages of 19 & 30
12 between the ages of 31 & 40
45% were Male
55% were Female
The main reasons those surveyed did not cycle to work were:
Time Constraints - 26.56%
Unpredictable Weather - 25%
Dangerous, as result of traffic - 17.19%
Perspiration - 12.50%
Too far from work - 18.75%
The predominant suggested use of electric bikes, according to our participants, would be:
Travelling to Work - 29.17%
For Leisure - 25%
A Mixture of both 45.83%
For the selected participants, the most important factors in deciding on whether to purchase an
E-Bike were:
1. Price
2. Functionality
3. Reliability
4. Aesthetics.
The data collected gave us a valuable insight into the various demographics and the E-Bikes
predominate use and suitability. Upon closer analysis, the age demographic survey participants
was in the age demographic of 24 30 year olds. This is only our secondary targeted market
segment. It may be beneficial to repeat the survey and specifically target the 45 65 year old
age group. Due to time constraints, for more conclusive results, we have decided to carry out
industry professional interviews.
Interview
We interviewed Ruairi Parsons from Donnybrook Bikes. Ruairi is the assistant manager at
Donnybrooks Bikes and has gained over 15 years of experience, in Irelands bicycle industry.
Ruairi indicated early in the interview, that Donnybrook Bikes do not currently sell E-Bikes.
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However, he suggested that during his previous employment in a comparative shop, on the
North Side of Dublin, he gained valuable experience into the electric bicycle market:
An Irish branded product, the Kenbay Swift E-Bike was the most popular seller
Predominantly purchased for commuting
The age demographic that most frequently purchased E-Bikes, were the 45 65year old age
group. (Ruairi stated, throughout his years in the cycling industry he has never has sold an
EBike to a person under 45)
The gender spread at purchase point is usually equal but a lot of female customers are
purchasing for their husbands and partners rather than for themselves.
After conducting an extensive customer analysis through the mediums of online surveys,
central statistics information, academic research and industry professional interviews, we have
concluded a target age demographic and geographic location for our ideal customers. The
segmentation we have chosen to aim for is the 45 65 year age group, in the area of Dun
Laoghaire Rathdown council catchments areas. Dun Laoghaire Rathdown has an overall
population of over 206,000, with over 49,014 of these people ranging from 45 64 (Cso.ie).
Therefore an accurate market size estimation for this campaign is 49,014 people.
In what will hopefully provide a competitive advantage for Donnybrook Bikes, they have
recently acquired the licensing rights to sell Kenbay products, to the South County Dublin area.
Further analysis of these competitors concludes that, Fitzcycles are potential competitors in the
E-Bikes market. They sell a number of different branded E-Bikes, such as Cube, KTM and
Hercules. However, their closest comparable product is priced considerably higher than the
Kenbay Swift E-Bike.
These competitors have various different strengths and weaknesses. All have interactive
websites, which offer interactive E-commerce. Upon visiting these sites, we believe none to be
as user-friendly as the site offered by Donnybrook Bikes.
All exploit social media as a marketing platform, some better than others. Ultimately, their
main weakness, and Donnybrook Bikes main advantage, is that none are able to offer the
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Kenbay Swift E-Bike. The only E-Bike designed and repaired in Ireland. Consumers want
to buy Irish but are still looking for value for money (Euromonitor.com, 2015).
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Since its opening 9 months ago, Donnybrook Bikes have successfully managed their operating
expenses. Similar to their competitors, the most substantial expense that the shop incurs is the
cost of inventory, payroll, rent and sundry. According to Ruairi, the owner of Donnybrook
Bikes, inventory is their primary cost, a figure he did not disclose with us.
Payroll roughly accounts for between 18% and 22% of the monthly sales revenue. Secondly
fixed monthly Occupancy expense, generally accounts for between 7 and 8% of Sales Revenue.
Overall financially the business is trading well but due to the business early lifecycle is
impossible to do a more in-depth market audit on their operating expenses.
6. SWOT Analysis
Despite the fact that Donnybrook Bikes is still in its infancy as a business venture, we believe
the following, to be to the current status of the fledgling company:
Strengths:
Renowned for providing reasonably priced products
Owners expertise, over 15 years industry experience
Great location, situated in an affluent area and on a busy commuter route
Varied range of products, including extensive array of cycling accessories
Superior after sales service
Weaknesses:
Limited number of current distribution channels
Superior after sales service can impact on selling activities, due to staffing resources
Limited funding available for expansion, owing to this being a relatively new venture
Competing against more established competitors, whose costs may have dissipated over
time, compared to that of this new company
Opportunities:
Cycle to work scheme
Environmental protection, less CO2 emissions
Gap in the market
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An improving Irish economy, more investment
Higher price of petrol
Large market in close proximity, approximately 200,00 people
Increased awareness of health & fitness
Threats:
Limitation in current Irish and European legislation
Changeable Irish Climate
Poor condition of Irish road network Lack of cycle lanes
Cost of electricity!
7. Marketing Objectives
Strategic Thrust
Our strategic thrust will define which products we will choose to sell, and into which market
we will choose to sell. In light of this, our product is the Kenbay Swift E-Bike and our
strategically selected target market segment will be commuters in the South County Dublin,
specifically the Dun-Laoghaire/Rathdown area. Our marketing strategy will require new
market penetration. This involves bringing the exciting, new Kenbay Swift E-Bike, into the
Electric Bike market.
Strategic Objectives
An objective is a measurable step a business takes in realising a strategy. Realisation of our
strategy will involve successful market penetration. We will attempt to forge significant early
sales, so as to secure significant market share of this emerging market. To achieve this, we need
to set realistic goals. These objectives are as follows:
Strengthen Donnybrook Bikes brand value with respect to customer service and after
sales services.
Introduce E-Bikes to a traditional store.
Increase customer volumes and their awareness of the E-Bike.
Ultimately, increase sales volumes and increase profits.
When we succeed in securing a healthy market share early on, we hope to become synonymous
in the greater Dublin area, for the sales of E-Bikes.
As previously mentioned, we will initially focus our marketing campaign on the 45 65 year
old residents of the Dun Laoghaire Rathdown area. A catchment area of over 200,000 houses
(CSO.ie). We expect to achieve similar initial sales to that of our European counterparts, who
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have recorded sales of E-Bikes to 0.15% of homes, during their first 18 weeks of sales (Bike-
eu.com, 2014). This would equate to sales volumes of 300 E-Bikes, generating 374,700 in
sales revenue. We believe that with our aggressive strategic marketing plan and with a truly
outstanding product, we will see sustained growth in E-Bike sales.
8. Core Strategy
Target Market(s)
Our target customers are south Co. Dublin based commuters. We believe the most appropriate
age range to target, are those between the ages of 45 and 65 years old. The geographic location
we will target, comprises the affluent catchment area of Dun Laoghaire Rathdown. Owing to
the relative cost of the E-Bike compared to conventional transport, like cycling, we believe this
particular age demographic, in this particular area, to be the optimum selection in generating
initial sales.
We will also target a sub segment of potential customers, made up of people aged 25-34 years
old. We envisage that this group will choose to buy the product more often as a gift for their
parents, than for themselves.
Competitive Targets
There are three established competitors in the South County Dublin area. These include
Fitzcycles, Hollingsworth Bikes and Think Bike. While these competitors are established, due
to their distance from Donnybrook, we do not envisage any significant threat to Donnybrook
Bikes E-Bike sales.
Competitive Advantage
According to Grant (2013), Competitive advantage is the advantage a business has over its
competitors. The company may develop some aspect of superiority over competitors, by
providing either better value for a product or service at a lower price, or through a higher cost
structure for a product or service that adds greater value to the customer through differentiation.
Donnybrook Bikes do both. They hold a differential advantage by providing a product whose
competitors pale in comparison, in terms of quality, design, value and functionality. They also
hold a comparative advantage, as they have the ability to sell the E-bike at a lower cost than its
competitors.
We believe that by adopting a dual competitive advantage approach, Donnybrook Bikes will
gain an edge over its rivals and will have the sustained ability to generate more customers and
ultimately add greater value to the business as a whole.
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9. Marketing Mix
Product
In consultation with the owner and through extensive market research, we have chosen the
Kenbay Swift E-Bike to be the first of its kind to retail at Donnybrook Bikes.
We believe that this particular product has a number of unique selling points which distinguish
Kenbay from other competitors in the market. These include;
1. Appearance
2. Functionality
3. Intangible/augmented components
4. Ability to meet the targeted customers expectations & requirements
The appearance and functionality of the Kenbay Swift E-Bike is really like no other in the
market at present. We believe that this product will attract and satisfy the needs of our target
audience. To begin with, this E-Bike is aesthetically pleasing. It has a step through alloy
frame, making it unisex and easily scalable. Through our research, we have found that our more
mature customers, 45yrs plus, prefer a bike that is easily mounted, as flexibility is generally
reduced.
The Kenbay also holds front suspension forks, three assistance levels, a handlebar mounted
charge indicator, and a throttle that is very user friendly, with a twist and go functionality,
ensuring safe and comfortable travel.
Electrically, the bikes battery has a range of up to 70km. The bike has a maximum assisted
speed of 25kmph, generated from a 250w, high torque, rear hub, brushless motor, all of which
is contained within the bikes 25Kg structure.
At its core, the E-Bike is an excellent form of transportation. It will efficiently and effectively
transport our target market in the way they want and need.
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The Kenbay Swift has many add on features, both tangible and intangible. The augmented
aspect of this E-Bike embraces a bundle of benefits. For example, if he/she wishes, mudguards,
a light, a bell and a saddle protector can be added, free of charge, features not offered by its
competitors.
The Kenbay Swift E-Bike will be an addition to the existing product line and at least initially,
will be the only electric bike the shop will be retailing. To spark interest and to encourage
perspective buyers, the E-Bike will come with a free 6 month aftersales service and a further 6
months with 50% off any repairs, maintenance or servicing. All mechanical issues will be fixed
on site and any electrical issues will be fixed by the design team, at their headquarters in
Tallaght, Dublin.
Price
According to The Economic Times (2015), Price is the value that is put to a product or service
and is the result of a complex set of calculations, research and understanding and risk taking
ability.
Of the perceived marketing mix, we believe pricing to be one of the most important elements.
Setting a price can be difficult, as it must accurately reflect the supply and demand relationship
of the product and its customers (Marketing.Net: Accessed Mar. 2015).
Prior to setting the products price, a pricing strategy must first be decided upon. When
choosing a pricing strategy however, important factors first need to be considered, ensuring it
best fits with the goals of the business. These factors include:
competition
market conditions
input and output costs
company objectives
market segmentation and customers behaviours around willingness to pay
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Having previously analysed many of these factors and gained a deep understanding and
awareness of our competition, the market and what the business is about, we feel the pricing
strategy that best suits Donnybrook Bikes is the Cost Price Strategy. This strategy takes into
account the costs involved in production and distribution. Based on these, the retailer can both
cover costs and mark up the product to include the desired level of profit. This strategy focuses
on the product and the returns that can be garnered from its sale.
Based on the Cost Price Strategy, the Kenbay Swift will retail at 1249. Costing
approximately 1000 to build and deliver each unit, this will deliver a mark-up per unit, of just
under 25%. Based on these figures, the company will achieve the following revenue flows:
600,000
500,000
400,000
300,000
200,000
100,000
! !
! 100 200 300 400 500
We believe this price to be very competitive within the electric bike market, when compared
to the aforementioned, top three competitors in south county Dublin.
1. Fitzcycles.ie
2. Hollingsworth Bikes
3. Think Bike
The Kenbay Swift E-Bike will retail at a considerably lower margin than the electric bikes
stocked by our competitors. For example the cheapest electric bike which Fitzcycles stock, is
the 2015 // Cube / Access WLS Pro Hybrid, priced at 1,999. This product possesses only a
fraction of the Kenbay Swifts functionality and is not as aesthetically pleasing.
Through analysis of our survey and questionnaires, we have found that when asked to grade
price, functionality and aesthetics, in terms of what was the biggest factor influencing the
purchasing decision, 90% chose price.
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Place
When marketer Jerome McCarthy put forward the four Ps categorisation in 1960, place was
considered the point in which the consumer could gain easy access to a product or service.
Getting the right product, to the right place, at the right time, involves planning, organisation
and most of all, an efficient distribution method. The distribution of our product, the Kenbay
Swift will involve two different methods; Retail and Online.
Primarily, we will focus our distribution efforts through the established retail outlet, based in
Donnybrook, South Co. Dublin. Research has shown that our core target market, 45-64 year
olds, prefer to have a tangible, face to face, in shop experience. Accordingly, we have
researched the demography of particular areas in Dublin, which we believe will generate most
sales. This has led us to the catchment area of Dun Laoghaire-Rathdown. The population for
this area from CSO figures, are estimated at about 206,000 (CSO .ie).
To ensure we do not constrict our customer base, we will also aggressively target additional
customers through our second distribution channel, our Online presence. We will look to build
a strong presence Online and envisage that this channel will capture the younger segment of
the market, who increasingly prefer to purchase through this platform.
Many benefits can be gained from providing this dual distribution channel for our product, for
example: the bike shop can aid in creating a stronger personal relationship with both current
and future customers. This face to face experience is something that the owners value and
regard as an integral part of the businesss vison.
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By developing an online platform, we feel we can exploit a more affordable medium of
advertising. This platform will allow all of our products to reach a wider audience, and present
the possibility of sales being generated from further afield.
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customers. The Adshel advertising method is expensive, but the cost per 1000 exposures should
validate this expenditure. QR Codes will be present on Adshel adverts, allowing users to
interact instantaneously with the companys social channels, product details and competition
information. We have meticulously researched geographic locations and have subsequently
picked where we feel we will have maximum exposure. We will deploy posters in 8 locations,
Killiney, Sandyford, Dundrum, Stillorgan, Blackrock, Dun Laoghaire, Donnybrook and
Rathmines.
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3. Strategic Flyers!
10,000 printed colour flyers, at a cost of 399 have been ordered. These flyers will be placed
strategically in the following locations with the permission of the business and premises
owners.
These flyers will be placed in these locations between the 29 th & 30th of April. We will also
partake in a flyer swop program. This will enable us to advertise via other local businesses
and in turn build inter business relationships.
This section of the campaign will involve the sequential decline, over a two week period, from
14 days to 0, the launch of the E-Bike. Intertwined will be graphical manipulations of the shop
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front, which will finish with a graphical image of The Kenbay Swift and their logo, A little
bit of effort goes a long way. Lightscape.ie will design the projection mapping for an arranged
fee of 500. (Projection location is outlined in the red box in the photo below)
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1. The Competition - Facebook, twitter & Instagram.
In this section, we will focus on the development of a Facebook, Twitter and Instagram
competition. (One prize winner to be selected at random) Although our demographic is of a
greater vintage, we shall be targeting our Facebook adverts to an alternative demographic. The
sub segment of 25 34 year olds, is the largest grouping on Facebook in Ireland
(eightytwenty.ie, 2015). The objective is that these users will refer a parent, friend or colleague
to Donnybrook Bikes. The campaign will consist of people Liking, Sharing or
Retweeting our E-Bike promotional advertisement, depending on their choice of social
media platform. Upon completion, the contestant will be placed into a draw to win one of our
exciting Kenbay Swift E-Bikes. The competition will launch on April 16th, 14 days before
the start of our print media campaign. The winner of the competition will be announced two
weeks after the start of the print media campaign.
Throughout the summer months, we have allocated a weekly budget of 100 to promote
Facebook posts and 70 a week for Google Adwords. The social networks competition will
be the first message to be promoted and will run as a paid ad from April 16th May 4th.
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Stall at Dun Laoghaire farmers Market Saturday Morning - May 1st.
Shop demonstration of E-Bike.
E-Bikes in Herbert Park Event.
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13. Financials
We have allocated the industry average of 4% of expected gross sales turnover, to our marketing
budget (Levinson, 2007). Donnybrook Bikes had gross sales of 300,000 for the fiscal year end
2014, allowing for an annual marketing budget of 12,000, in 2015. This financial information
was obtained during an interview with Owner, Ruairi Parsons. After our campaign, we predict
sales in our target area to account for approximately 0.15% of the population. This equates to
the sale of approximately 300 E-Bikes, generating 374,700 in gross sales revenue, with a net
profit of 74,700. This will provide a significant return on our marketing investment, detailed
below. The return on marketing investment formula is a quantitative measure, used to evaluate
whether or not, the marketing spend was efficient in translating capital into increased sales and
ultimately in increasing profits (Economywatch.com, 2015).
ROI = (Gain from Investment Cost of Investment)
Cost of Investment
Total% 11,949%
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Appendix
29
1). Do you currently stock E-bikes?
Not currently but we are interested in selling Kenbay E-Bikes, as at my previous job we used
to sell them and they sold quite well. This marketing plan came along just in time as we aim start
selling them this summer. Please send the document when its done.
6) Does the customer buy many complementary goods with their E Bike?
They usually buy a lock, helmet and some clothes. They dont need to purchase mudguards or
lights as the Kenbay bikes come with them.
30
7) What after market service do you offer?
We offer great aftermarket service all our bike customers. We fix the bikes for free for the
first six months and then after that the customer only pays 50% of the fee.
11) What are the main selling points of the Kenbay line?
Its cheaper than a lot of other brands out there.
The company is local and will fix any problems for free.
People like to support Irish.
31
Appendix 2: Survey Monkey Questions
1. Which one of the following age demographic to fit into?
2. Are you male or female?
3. What method of transport do you use to get to work?
4. What puts you off about cycling to work? Please indicate with 1-5, to which deters you
from cycling. (Traffic, Time, Weather, Perspiration, Other please specify)
5. If you had an E-Bike, what would you use it for predominantly?
6. Rank the most important purchasing factors for an E-Bike?
7. Would you prefer a foldable E-Bike or Non Foldable E-Bike?
1. 2Wheels.ie Sandymount
2. Belfield Bike Shop
3. Bike Rack Cabinteely
4. Bike Shop Deansgrange
5. CI E-Bike
6. CCM Racing
7. Cycle Ops Ltd
8. Cycle Power
9. Cycle Superstore
10. Cycle Surgery
11. Daly (Joe) Cycles
12. Expert Cycles Rathfarnham
13. Delaney and Son Cycles
14. Dutch Bike Shop
15. Ferris Wheel Cycles
16. Fitzcycles.ie
17. Freemans Cycle Shop
18. Go Electric
19. Green Machines
20. Harrys Bike Shop Clonskeagh 21. Giant Dublin
22. Hollingsworth Bikes Kilmacud
23. Hollingsworth Cycles
Templeogue 24. IrishFit Ltd.
25. Kenbay Electric Bikes
26. Life In Motion
27. MacDonald Cycles Rathgar
28. Mad Elk Cycles
29. Mobile Bicycle Sales and Service
30. McQuaid Cycles Clondalkin
31. Mikes Bikes
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32. OC Tuning
33. Rothar.ie Dun Laoghaire
34. Spokesman
35. Swim Cycle Run Ltd.
36. Stagg Cycles
37. Stillorgan Cycles Ltd
38. Wheelworx Fonthill
39. Wolfe Cycles
40. Velo Motion @ Base2Race
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34