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bikeMi Expansion Plan
Marketing Plan by
Jo Patroni, Nesreen Ramadan, Michelangelo
Secchi and Bernadette Gutmann
INTRODUCTION
WHY WE CHOSE THE PRODUCT                WHAT WE EXPECT
 Underserved - room for expansion       Increase use of bikeMi and
 Inspired by successful expansion in     improve tourism in Milan
  other EU cities                        Create a new value of seeing
 Positive Externalities                  Milan in different way,
                                         New kind of experience
                                         Make the bikeMi more
                                          fashionable in a way to attract
                                          visitors
                                         Improving city image
GAP ANALYSIS
Everyday in Milan: 70 000 tourists, 200 000 Commuters, 1.3 m Inhabitants
100%
                        Finance restricted
 90%
 80%
 70%
 60%                    Laziness, lack of safety and
 50%                    comfort
 40%
 30%                    Physical
 20%                    ability, distance, station
 10%                    locations, payment
                        method, awareness
   0%
DETAILED SEGMENTATION

Potential       Duration of   Destination      Expected           Kind of
                   Stay                         Benefit           Visitors



                  Long Term
                                                   Safety
                              Moving outside                                      BIKE MI
 All visitors
                                 Center
                                                                                    for
                 Short Term
                                               Experience/Fun
                                                                  Art/Culture     Tourists
                               Moving inside                       Tourists
                                 Center

                                                                 Event visitors

                                                 Flexibility

                                                                Study/Education
WHAT WE ARE OFFERING
   Facilitating the Access
   Better way of Communication
   Price easy Payment
   Increasing stations in different Places
   Create Partnerships
   Rebrand the Product
HOW WE ARE OFFERING IT - THE MARKETING MIX
   We want to provide a service for tourists in relation with partners
    who can cover price related problems (deposit) in order to provide a
    easier access to the service.
   It is important to promote the service through a strong
    campaign, rebranding and to develop “full-tourist-packages”.
PARTNERSHIPS


                       Government
        Intermediary      and
                        Agencies



          Tourism
                       Promotion
          Network
ONE STRATEGY FOR PUBLICS

      ATM          Intermediaries            Final Users
                                              (Targeted
                                             Segments)

                     Hosting Services
                                           Art & Culture Tourist
                   (Hotel, B&B, Hostels)
      ATM
 (Clear Channel)     Students Hosting
                         Services           Education Tourist
                    (Dorms, Agencies)


                    Events Production
                                            Event&Fair Tourist
                        Agencies
PRICE – COST & PRICES
•   Fixed costs: bike, bike station, bike station maintenance, infastructure, (GPS)
•   Variable Costs: bike maintenance,
•   Cost strucure: not proportional to number of users (increase by addition of bike
    station)

Actual Service                                           Cost Coverage
                         Condition of Service
                         0/30 min         Free
                         30min/2h         0.50
                         1 more hour      2.00
                                                                            30%


          Fees (€)                                             70%
                     Season      Weekly         Daily

          Fee        36.00       6.00           2.50

          Deposit    150.00      150.00         150.00
                                                                                       Fees
PRICES & STRATEGY
                                                                                               PRICE FOR FINAL USER

                       Final User     Hosting Services   Student Services   Agencies

PASS                   Daily/Weekly   Yearly             Yearly             Weekly

Subscription           Free           36.00              25.00              6.00

Deposit                NO             150.00             150.00             150.00

Bonus&Promoti          na             4+1                9+1                4+1
ons                                   6 months free
Condition of service                                                                    PRICE FOR INTERMEDIARY
0/30 min               Related to     Free               Free               Free
                       Intermediary
30min/2h               Related to     Free               0.50               Free
                       Intermediary
1 more hour            Related to     1.00 €             2.00               2.00
                       Intermediary
Payment                Same           Credit             Credit             Credit
                       method used    Card/Phone/        Card/Phone/ bank   Card/Phone/ bank
                       to pay         bank account       account            account
                       intermediary
PLACE – WHERE TO ACCESS BIKEMI

• Stations are not more than 300 meters apart from each other
• Providing all touristic places with bikeMi stations nearby
• Providing all universities and colleges with bikeMi stations
  nearby
• Providing partners with stations nearby
• Expansion to 90/91 area
• “Adopt” bikeMi stations
PLACE – BIKEMI ACCESS VISIBLE

• Make terminals visible
  through involvement
  of “potential users”
• New Logo – new places
  – “catchy” places –
  suitable to different
  locations
• Technical opportunities
  for additional uses

                            Design Your Stations
POLICY & PURSE-STRINGS

EC Directive to reduce air pollution
                          Intermodality improvement by lobbyists
Fiscal policy that gives
incentives to cities with                      Road / Cycle Safety
                      Functioning lobbying
greater decrease of
                      group on European
pollution                                        Short Term – Road
                      level supports cities in
                                                 Rules in Italy “lax”
                      introducing bike-
                      friendly measures
PRODUCT – CREATING BRAND
AWARENESS




                MI
                           Milan for Tourists
                           – See the city by
                                bikeMi
SELECTION OF COMMUNICATION
       STRATEGIES
    SMART OBJECTIVES                                STRATEGY FOCUSING MATRIX


                              Create
     Increase
                            partnership
   number of
                              with 10
   art/culture
                              tourist
  tourists using
                           accommodati
    bikeMi by
                            on facilities
  20% within 8
                              within 8
     months
                              months



                                                        Cost/Effort/Difficulty
Strong Partnerships – Expansion of bikeMi Service
COMMUNICATION PLAN
Phase 1 (0-4 months)
- Promotion/contact intermediaries
- Building partnerships with Hotel Associations and Chains
- Contracting with min 10 intermediaries

Phase 2 (1 year)
- Experiment on focused target
- Involve Event Agencies
- Promotion through web
- Promotion through intermediary

Phase 3 (after 1st year)
- Control on results
                                                       Experience Milan by Bike
- Mass pull campaigns
- Blogs
Q&A?

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BikeMi Expansion Marketing Plan

  • 1. bikeMi Expansion Plan Marketing Plan by Jo Patroni, Nesreen Ramadan, Michelangelo Secchi and Bernadette Gutmann
  • 2. INTRODUCTION WHY WE CHOSE THE PRODUCT WHAT WE EXPECT  Underserved - room for expansion  Increase use of bikeMi and  Inspired by successful expansion in improve tourism in Milan other EU cities  Create a new value of seeing  Positive Externalities Milan in different way,  New kind of experience  Make the bikeMi more fashionable in a way to attract visitors  Improving city image
  • 3. GAP ANALYSIS Everyday in Milan: 70 000 tourists, 200 000 Commuters, 1.3 m Inhabitants 100% Finance restricted 90% 80% 70% 60% Laziness, lack of safety and 50% comfort 40% 30% Physical 20% ability, distance, station 10% locations, payment method, awareness 0%
  • 4. DETAILED SEGMENTATION Potential Duration of Destination Expected Kind of Stay Benefit Visitors Long Term Safety Moving outside BIKE MI All visitors Center for Short Term Experience/Fun Art/Culture Tourists Moving inside Tourists Center Event visitors Flexibility Study/Education
  • 5. WHAT WE ARE OFFERING  Facilitating the Access  Better way of Communication  Price easy Payment  Increasing stations in different Places  Create Partnerships  Rebrand the Product HOW WE ARE OFFERING IT - THE MARKETING MIX  We want to provide a service for tourists in relation with partners who can cover price related problems (deposit) in order to provide a easier access to the service.  It is important to promote the service through a strong campaign, rebranding and to develop “full-tourist-packages”.
  • 6. PARTNERSHIPS Government Intermediary and Agencies Tourism Promotion Network
  • 7. ONE STRATEGY FOR PUBLICS ATM Intermediaries Final Users (Targeted Segments) Hosting Services Art & Culture Tourist (Hotel, B&B, Hostels) ATM (Clear Channel) Students Hosting Services Education Tourist (Dorms, Agencies) Events Production Event&Fair Tourist Agencies
  • 8. PRICE – COST & PRICES • Fixed costs: bike, bike station, bike station maintenance, infastructure, (GPS) • Variable Costs: bike maintenance, • Cost strucure: not proportional to number of users (increase by addition of bike station) Actual Service Cost Coverage Condition of Service 0/30 min Free 30min/2h 0.50 1 more hour 2.00 30% Fees (€) 70% Season Weekly Daily Fee 36.00 6.00 2.50 Deposit 150.00 150.00 150.00 Fees
  • 9. PRICES & STRATEGY PRICE FOR FINAL USER Final User Hosting Services Student Services Agencies PASS Daily/Weekly Yearly Yearly Weekly Subscription Free 36.00 25.00 6.00 Deposit NO 150.00 150.00 150.00 Bonus&Promoti na 4+1 9+1 4+1 ons 6 months free Condition of service PRICE FOR INTERMEDIARY 0/30 min Related to Free Free Free Intermediary 30min/2h Related to Free 0.50 Free Intermediary 1 more hour Related to 1.00 € 2.00 2.00 Intermediary Payment Same Credit Credit Credit method used Card/Phone/ Card/Phone/ bank Card/Phone/ bank to pay bank account account account intermediary
  • 10. PLACE – WHERE TO ACCESS BIKEMI • Stations are not more than 300 meters apart from each other • Providing all touristic places with bikeMi stations nearby • Providing all universities and colleges with bikeMi stations nearby • Providing partners with stations nearby • Expansion to 90/91 area • “Adopt” bikeMi stations
  • 11. PLACE – BIKEMI ACCESS VISIBLE • Make terminals visible through involvement of “potential users” • New Logo – new places – “catchy” places – suitable to different locations • Technical opportunities for additional uses Design Your Stations
  • 12. POLICY & PURSE-STRINGS EC Directive to reduce air pollution Intermodality improvement by lobbyists Fiscal policy that gives incentives to cities with Road / Cycle Safety Functioning lobbying greater decrease of group on European pollution Short Term – Road level supports cities in Rules in Italy “lax” introducing bike- friendly measures
  • 13. PRODUCT – CREATING BRAND AWARENESS MI Milan for Tourists – See the city by bikeMi
  • 14. SELECTION OF COMMUNICATION STRATEGIES SMART OBJECTIVES STRATEGY FOCUSING MATRIX Create Increase partnership number of with 10 art/culture tourist tourists using accommodati bikeMi by on facilities 20% within 8 within 8 months months Cost/Effort/Difficulty Strong Partnerships – Expansion of bikeMi Service
  • 15. COMMUNICATION PLAN Phase 1 (0-4 months) - Promotion/contact intermediaries - Building partnerships with Hotel Associations and Chains - Contracting with min 10 intermediaries Phase 2 (1 year) - Experiment on focused target - Involve Event Agencies - Promotion through web - Promotion through intermediary Phase 3 (after 1st year) - Control on results Experience Milan by Bike - Mass pull campaigns - Blogs
  • 16. Q&A?

Editor's Notes

  1. Push / getting the product directly to hotels, intermediaries, etc. Mass pull – airport posters