Marketing plan for DC bike

Dịch vụ viết thuê luận án tiến sĩ, luận văn thạc sĩ,báo cáo thực tập, khóa luận
Sdt/zalo 0967 538 624/0886 091 915 https://lamluanvan.net/
TABLE OF CONTENT
EXECUTIVE SUMMARY.................................................................................................2
CHAPTER I: REPORT INTRODUCTION........................................................................3
CHAPTER II: MAIN BODY OF REPORT........................................................................4
1. Market overview ..........................................................................................................4
1.1 Marketing audit.......................................................................................................4
1.2 Market information.................................................................................................4
1.3 Customer information.............................................................................................5
2. Marketing strategies and tactics...................................................................................5
2.1 Marketing mix.........................................................................................................5
2.1.1 Product..............................................................................................................5
2.1.2 Place (Distribution channel).............................................................................6
2.1.3 Pricing ..............................................................................................................7
2.1.4 Promotion .........................................................................................................7
2.2 Budget ........................................................................................................................9
CHAPTER III: CONCLUSION AND RECOMMENDATION.......................................10
REFERRENCE..................................................................................................................11
APPENDIX .......................................................................................................................12

EXECUTIVE SUMMARY
This paper outlines the marketing plan for DC bike –a new bike of Kano Company into
City of Cambridge. There are two important things in this plan, including market
overview –Cambridge with its population, targeted customers and marketing tactics,
using four P strategies. In addition, the plan also introduces about Kano Company as well
as its new product and recommendation for the following marketing plans.
To conclude, DC bike stands for Dutch-Cambridge bike, which serves mainly adults and
cyclists and is offered at the premium price at two stages with the skimming strategy.
Promotion is taken through advertising, salespeople, PR and website channels.

CHAPTER I: REPORT INTRODUCTION
Kano Company is originated in Dutch, or Netherlands and based in City of Cambridge,
Britain. For a long time, Kano Company has been successful in producing bicycles and
selling them to the Dutch. In order to extend its cycling network, Kano Company has
established one branch in United Kingdom, which has served more than 100 thousand
residents in City of Cambridge. In 2012, the president of Kano Company decided to
design a new bicycle into this market segment. After one year researching and
experimenting, the manufacturers of Kano have created a special bicycle, which is
expected to bring lots of benefits to both this branch in UK and its head office in Dutch.
At the end of 2013, many conferences about introducing this bicycle were held;
especially operational marketing plan was discussed and investigated thoroughly for
some months. Finally, the president of Kano Company came to a decision that this new
bike would be named DC bike, which stands for Dutch – Cambridge bicycle. He also
announced that the marketing plan must be completed at the beginning of April, 2014 and
come to effect one month later after everything is being prepared carefully. This paper is
the final operational marketing plan for DC bike.

CHAPTER II: MAIN BODY OF REPORT
1. Market overview
1.1 Marketing audit
Kano Company has been successful for many years since it produces few kinds of
bicycles but only perfect ones. Its key value propositions are known as innovation and
high satisfaction of customers. All of its samples have focused on design and customer
expectation as well as customer safety. Because of sophisticated designs and precision to
details, almost products of Kano Company are offered at very high prices, which seem to
be usual for a perfect bike in Dutch, where the average price of one bicycle is €745 –
according to Statistics from COLIPED and COLIBI, representing the European Bicycle
Industry.
However, it is not easy to apply this high price in UK market, since the bicycle’s average
price here is found to be only €280, or around £242. Existence of Kano Company has to
face with success of some manufacturers originated in Cambridge such as Cambridge
Cycle Company, Electric Transport Shop, Dutchbike dealer. Price of a road bike in Cycle
Company lies in range of £500 to £1,000 while an electronic bicycle is very expensive,
offered at above £2,000 and Dutch bikes’ prices do not fluctuate as much as that of Cycle
Company. Thus, to get market share and fight against many competitors here, Kano
Company put lots of efforts in this new bike, DC bike.
1.2 Market information
UK is another suitable market for cycling manufacturing after Germany, if not
mentioning Netherlands here, which is proved that in 2012, sale of bicycle in Britain
reached to 3600 thousands, 366 thousands lower than sale in Germany. Simultaneously,
UK is also listed in top ten bike-friendly countries in Europe. This information will be
illustrated more clearly in appendices part.

Cambridge is the administrative centre of the county of Cambridgeshire, England.
According to the United Kingdom Census 2011, its population was 123,867. Among
more than 100 thousand people, the targeted customers will be described carefully in the
next part.
Selecting City of Cambridge as the target market, managers of Kano Company believe
that this city will become “bicycle capital” of UK (Space for Cycling) in the near future.
Additionally, an attractive “Cycle Super Highway” between the main axes of Cambridge
to connect with the existing cycle network within the city is in progress.
1.3 Customer information
Grous (2012) confirmed an expansion in the cycling market with indications that this will
be a longer-term trend in UK. The number of cyclists in the UK rose by 11% to 13
million in 2010, according to a London School of Economics report, while Mintel
estimated that 34% of UK adults owned a bike.
YouGov Sixth Sense Bicycle Survey (2011) also addressed that four reasons why people
in UK, particularly in Cambridge prefer to cycle were for enjoyment, for keeping feet, for
saving money and for environment protection. In addition, it divided respondents into
two groups: cyclist and adults aged 16 +. Based on this data, targeted customers among
123,867 residents in Cambridge are:
 Cyclists who are finding enjoyment
 Adults who love special bicycles and would like to keep fit as well as relax
2. Marketing strategies and tactics
2.1 Marketing mix
2.1.1 Product

In complying with the existing value proposition of Kano Company, this kind of product
still remains its offering of innovation and high satisfaction for customers. In detail, DC
bike brings these two offerings:
a) It is an example of perfect design for a road bike. Mintel (2012) highlighted the fact
that most of customers are now buying, riding road bikes, not mountain bikes as in the
past. While mountain bicycles are changed their designs regularly, almost road bikes
seem to be similar and traditional. So, it is the time for innovation and turning these old,
traditional bikes into new attractive ones. Additionally, as mentioned above, people in
Cambridge are willing to purchase a bike to keep fit and for enjoyment, thus, they will
feel more confident and interesting when riding on an attractive bicycle with novel
designs.
b) It is a connection between traditional Dutch bikes and Cambridge residents’
expectation so as to fulfill shortages of Britain bicycles. Classic Dutch bikes are
considered to be basic and pretty indestructible. Rachel (2013) identified in UK, most
bicycles do not come with rear wheel locks or built in lights, often there is no chain
guard, mudguard or pannier rack. Moreover, cyclists in the Cycling Culture project had
expressed their willingness to wear their everyday clothing instead of helmets and hi-vis
(fluorescent jackets). DC bike certainly solves their problems and offers them the best
product.
2.1.2 Place (Distribution channel)
DC bike will be firstly distributed only directly from Kano Company to its customers; it
means there is no retailer, wholesaler or agent in the chain of selling this product. The
reason is that Kano Company uses the strategy of skimming in Cambridge market. DC
bike will be introduced at initial high price to find its potential customers so that this firm
can segment small niches in this market for next products in the future and improve
relationship with potential customers. After gathering purchasing power of customers at
very high price, DC bikes will be transferred to some main retailers with the lower prices

in order to increase sales. Kano Company can use this strategy due to high quality of DC
bikes and desires of Cambridge customers towards a perfect bicycle.
2.1.3 Pricing
As mentioned in the previous part, DC bike will be put at the premium price. Firstly, the
market DC bikes aimed to is the high end market, so the economy price is not suitable.
Secondly, DC bike is launched as a perfect road bicycle, which fixed any problem of
normal UK bikes and was inspired by classic Dutch bikes. Thus, high price can
accurately measure its valuation. Thirdly, customers who really would like to enjoy this
new bicycle and are willing to purchase it will be potential customers of Kano Company.
In the second stage, DC bikes are offered at high price, not economic price but lower than
the first price.
To conclude, the price of DC bike is decided to be £1,800, higher than any normal Dutch
bike. It covers all costs of producing the bicycle, wages for employees, cost for
maintenance and huge amount of profit. However, this price excludes taxes, VAT or
tariff if someone wants to export it. At the time when salespeople inform that the sale of
DC bike tends to decrease, the managers will lower price down to £1,600 or £1,500,
depending on the purchasing power in the market.
2.1.4 Promotion
Advertising
Kano Company selected institutional advertisement so that DC bike can meet
requirements of customers and receive their goodwill. The advertisement “Try a Dutch
bikes in Cambridge and feel perfect freedom and beauty of cycling with it” will be placed
in the local press and banners of famous locations. The word “freedom” refers to
convenience when riding a bike with everyday clothing, which is very attractive to
cyclists. “Beauty of cycling” means perfect design of DC bike, which can draw attentions
of woman and people who want to keep fit.

It can be also called a persuasive advertisement, which is conveyed through newspapers,
magazines, radios, televisions and direct mails.
Website
E-commerce appears and leads to an increase of demand for website. Kano Company
also has its owned website in order to connect with customers and make online orders
easily. To introduce and make impression for DC bikes, the website will have a big
banner about features of DC bike and what characteristics other bicycles do not have.
Also, this banner gives customers opportunities to get discount of 5 to 10% if they are
ready to make pre-orders.
Aiming to increase the view of DC bike, each customer shares it on social networks and
invites friends to visit the website will also accumulate about £1 in their accounts if they
sign it up.
In addition to traditional method, the marketing department of Kano Company tries to
take advantage of Search Engines Optimization, which helps DC bike rank in top
positions in Google and Yahoo and maximize the discoverability of the website.
Public relations
It is essential to hold an event to launch DC bike. This special event is planned to be set
up in the middle of April. Many famous cyclists will be honorably invited; one of them
will be selected to become an ambassador for DC bike in order to attract his fan to be
potential customers. Talented experts will appear in this event to ensure the safety of this
new bicycle. Important people in Government are also sent invitation cards to prove DC
bike is sold legally.
In this event, DC bicycle will be introduced, taken photos and the ambassador will have
chance to try it. Guests can enjoy an afternoon tea and snacks on offer. Music and a
viewing of the improved facilities will be available.

Sale teams
Success of a new product has to be implemented with the support of sale teams, who are
in position to find out potential customers and keep relationship with them.
2.2 Budget
Item Date
Completion
Cost Measure of Success
Paid search engine
advertisement to
increase exposure
2nd
April £5,000 All sites listed carrying web link
Cost to pressure test
operations
10th
April £3,500 Smooth performance of DC bike
Advertisement in
cycling newspapers,
television, magazines
12st
April £8,500 Advertorial accepted
Event to launch DC 16st
April £1,500 200 people in attendance
Invite ambassador 16st
April £1,000 Attract more customers
TOTAL £19,500

CHAPTER III: CONCLUSION AND RECOMMENDATION
In conclusion, the operational marketing plan will come into effect at the beginning of
May. This action must comply with planned intentions shown above. However, it is not
mandatory to follow all of these stages in the marketing plan. Depending on each real
situation, some tasks must be changed in flexible way to get the highest outcomes.
In addition, it is recommended that diversification and skimming are the main tactics in
launching DC bike. In the future, if Kano Company intends to invest in low end market,
skimming seems to be unsuitable. Under this circumstance, this company should adopt
cost leadership or penetration method. Therefore, it is necessary to address that this
marketing plan is used for one specific case, not for all products in the future.

REFERRENCE
Jan W. 2012, “United Kingdom 2011: Cycling Economy Boomed”, Bike Europe, Vol.2,
No.1
Jackie C. 2013, “Cycling: Which do you prefer, car or bike culture?”, Maple Ridge News,
December, 2013, viewed on March 29, 2014
< http://www.mapleridgenews.com/community/236297411.html>
Jonathon H. 2011, “How much is the average price of a bike in the UK? £242”, Bike Biz,
October, 2011, viewed on March 29, 2014
< http://www.bikebiz.com/news/read/how-much-is-the-average-price-of-a-bike-in-the-
uk-280/012014>
Kotler Ph. 2000, Kotler on Marketing, Free Press Publishers, pp. 17-30
Kotler Ph. 2000, Marketing management, Pearson Education Publishers, 11th
edition, pp.
11-13
Matthew C. 2009, “British women prefer men who cycle”, Bikeradar, October, 2009,
viewed on March, 29, 2014
< http://www.bikeradar.com/news/article/british-women-prefer-men-who-cycle-23514/>

APPENDIX
1. Research from U.S-based news site NPR
Source: NPR
Figure 1: Bicycle and passenger cars sale in Europe
From this above figure, a total of 3,066,000 bikes were bought in the UK in 2012,
compared to just 2,045,000 passenger cars.
0 1000 2000 3000 4000 5000
Italy
France
Britain
Germany
Passenger cars
Bicycles

2. Motivations for cycling
Source: YouGov Sixth Sense Bicycle Surveys (December 2011)
Figure 2: Motivations for cycling of the British
Nat Rep: 843 nationally representatives UK adults aged 16 + who cycle at least once a
month.
Cyclist: 1,089 UK cyclists aged 16 + who cycle at least once a month.
3. Stuff – lack of UK bicycles (Rachel Aldred, 2013)
In the UK, most bicycles lack features that are normally found in higher – cycling
countries – they do not come with rear wheel locks or built in lights, often there is also no
chainguard, mudguards or pannier rack. Most modern UK bikes are influenced by
demands of racing (e.g. quick release wheel) even for bikes clearly not sold for racing.
This shapes what other stuff people need: for example, to always carry a lock or locks,
and lights if they wish to ride legally after dark. There is pressure to wear helmet, hi-vis,
which are seen as safety clothing. At the same time, many cyclists in Cycling Cultures
project talked about wanting to cycle in their everyday clothing, and finding the need to
wear specialized clothing and carry additional items inconvenient.
4
17
19
21
29
39
78
82
0 10 20 30 40 50 60 70 80 90
To take advantage of my company's
cycle to work scheme
Avoid congestion
Stress relief
Replace cars
Environmental reasons
To save money
Keeping fit
For enjoyment
Cyclist
Nat Rep

4. Most bike-friendly countries in Europe
1 Denmark
2 Netherlands
3 Sweden
4 Finland
5 Germany
6 Belgium
7 Australia
8 Hungary
9 Slovakia
10 UK
Source: European Cyclists' Federation Cycling Barometer
Table 1: most bike-friendly countries in Europe

Marketing plan for DC bike

Recommended

Recommended

More Related Content

Similar to Marketing plan for DC bike

Similar to Marketing plan for DC bike (20)

More from lamluanvan.net Viết thuê luận văn

More from lamluanvan.net Viết thuê luận văn (20)

Recently uploaded

Recently uploaded (20)

Marketing plan for DC bike