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Folding Bikes marketing strategy in Germany

Running head: folding bikes The strategy of 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 and number of 27,707,761 26,676,759 number of women, this is approximately a 1:1 ratio of males to females in this market for what is folding bike aimed at both sexes and are no different one on the other.

3. Geographical location:

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

iii. Justification for the choice of target market:

The logic of the specific geographical area of the market is that most universities and businesses in major cities, the group age is the goal because 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 bike case is a mode of transport in both sexes.

B. Competition

Direct and indirect

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

The major indirect competition is expected in marketing folding bicycles in Germany is expected to come from 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 very for much less, and the fact that most of the German population is the most price sensitive than other features such as brand recognition, these have a great challenge. Bicycles are also more powerful motor 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:

Product differentiation by introducing a folding bike

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

Opportunities:

Expand 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 and bureaucratic procedures to encourage foreign investment, but at the same time can be quite complicated. "Although non-discriminatory in the classic sense, government regulation is often complex and may offer a degree of protection to established local suppliers. "Germany presents" 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, Trade Marks, 2000).

b. Retail Outlets

The distribution of our folding bikes should be very simple. We will present our bikes in Germany so it will be very cheap and then distribute to retail outlets. The type of retail outlets which will focus on the distributors are independent bicycle. In Germany there are two independent bicycle dealer cooperatives called ZEG mass and Rico. BICO is a coalition of more than 500 bicycle dealers throughout Germany (Powerful 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 bicycles and bicycle related suppliers and properties that have an inventory of 41,000 bicycles (Crenshaw, 2008). This is very important to our company because we allowed to pass through one of the sources to reach hundreds of bicycle retailers. We must join with their cooperatives to enable them to carry our bikes at all points sale.

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

Trade shows are another method of distribution to use. The fairs are very important in doing business in Germany because they are business events where contracts are negotiated and deals are made. Eurobike is held annually in Germany and is considered the most important fair for the bicycle industry. "International Bicycle Fair ended on Saturday 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 enter Bicycle business would work directly with independent bicycle dealers and not use any wholesalers, resellers or distributors. Bicycle shops either order the bike 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 to walk in purchases. This enables our company to maximize profits and minimize costs. The cost of less between production and purchase the greater potential benefits for our company and dealers selling folding bicycles.

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 "" The magazine we have here in the United States. 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? They will also be announced by bicycle (in 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 (German edition). Commercial advertisements will be posted on the sports channels like or My Super Sports Network Sports Germany and play at night when 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, the summers are usually warm and sunny, with very little rain, however, the winters can get very cold, "his" snow season and frost (Hochstadt). Therefore, more publicity will be carried out during summer rather than winter. In Munich, where the climate is pleasant throughout the cycling fold greater, therefore, promotional offers and advertising will be stronger in this part of the region.

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

e. Message

The media usually use advertising to reach the market for bicycles folding and all the other cars in general, Germany is the media. This is due to the fact that one is able to provide detailed product information that marketed at a relatively cheaper price. The objectives of the folding bike advertising would increase its popularity and promotion of the product to the target market. Addressing 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 advertisements announcing it will focus on product benefits. It will be designed to promote faster journeys, increased recreation and healthier.

f. Internet Advertising

The World Wide Web is increasing its popularity by the minute and people spend more time surfing the Internet that make watching TV or browsing though magazines. Therefore, the placement of ads on social sites such as the face or My book will help to promote space folding bicycle 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 which is a German sports channel, will be beneficial for the marketing of the folding bicycle.

g. Sales Promotions

Promotions sales will be used to browse people to invest in the product. Our internet links will direct customers to our website where after filling a small survey, will 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 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 they can spend on promoting Internet sales is € 50,000.

h. Sales Staff

Due to the fact that we a newly established company in Germany, we will not have a sales force, but will be selling our bikes directly to dealers. retailers will educated with knowledge of 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 generate a sales force at that time.

i. Advertising

As a folding bike launches in Germany, the budget for the creation of 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 possible information is given on the product in the product offering (Gianfranco, 2001). Therefore, as noted earlier, most of the advertising budget be used to create 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 due to many reasons. First, Neue Reveue and biking are some of the best-selling magazines in Germany, therefore, the placement of advertisements in these journals are presented the Germans with 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 viewing the print ads. Second, television commercials will air during peak hours the day and in the channels of sports, mostly. Like most 20-35 years old tune boys in sports entertainment channels, to air the ads on the bike folding during peak hours in the sports channels are expose to more people. In addition, young men spend a lot of time surfing the Internet-wide and whether for 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 the university 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, the promotion plan will reach the target market and encourage investment in the folding bicycle.

B. Phase PLC

The product is at the introductory stage in its life cycle. The product thus should be very affordable for most consumers to enter in the market and to counteract the side effect of competition (Jacobs & Stone, 2001). The product must be of high quality and good brand to attract and maintain a broad base of consumers. 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.

D. Compatibility, Complexity, Trialabilty, and Observability

Due to shortage of space in urban areas, where the majority of population, the folding bike is relatively smaller than other vehicles. It is easy to use, requiring minimal training to operate. The 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 adapt to different needs and preferences of consumers.

E. The product and the competition:

The product will be easy operate, will be lighter, faster and stronger in comparison with the products on the market. The product will also be better than competitors, since to be the only hand built folding bicycle made in Germany, the product will also be high quality and this will attract and maintain a broad customer base. The product also will 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. Name product and the logo:

The product name and logo represents both about why the product is better than other products on the market, the name the product and the logo should contain words that are related to something well known and at the same time, related to the product, the best product name is the word German bicycle "fahrrad" and also include the German name for cheetah "Gerpen, hence the product name is" Gerpen Fahrrad "this will give an indication that 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 bike, but the size of the package will be easy folded to occupy less space and also allow easy transport and storage. The product and the name of logo comply with the labeling required and not the copyright laws of chlorine and there are no warning labels should indicate.

H. Product Features

The product is classified in sizes including small, medium, in general, allowing the user to select the right product they prefer and also the prices are 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 during the first six months after purchase, but only if the damage is not due to negligence, however the company will continue providing services after six months at a lower cost compared to its competitors.

J. The main problems for the acceptance Product:

Due to the advanced technology and slow change of preferences, the product complies with the difficulties in the acceptance. Aging of the population is reluctant to accept because of his physical limitations and existing products on the market could make it less acceptable in comparison with 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 life of cheaper products), environmentally friendly (the Germans are selective buyers) and requires storage minimum space (most of the population lives in urban areas leading to a shortage in space).

Conclusion

Germany's large economy and population provides marketers a great opportunity there. "Cyclists are directed further, bagging their bicycles to carry 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 media availability, 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 pleased to know these folding bicycles are becoming more attractive, easier to get, and softer to handle, so drivers will no doubt more leave and enter "cover."

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