Marketing Strategy Assignment Help
The target market comprises of teenagers, aged 11-20 years, who travel various distances for the school or colleges and for tuitions across the city all seven days of the week. This segment of the population is known to be price conscious as they do not have fixed source of income and would love to have economic personal vehicle till they can afford other personal vehicles.
The product’s value proposition is – “Affordable and high-power everyday transportation with the desired x-factor”. The product is positioned as a vehicle that is cost-effective for the target segment, is complemented with a high power electric motor for speed, and complements the contemporary style of the youth in its design.
The biggest challenge for the people in the target market is that they don’t find cost effective transportation on daily basis and also desire convenience with style while travelling.
The product features are as follows:
- High speed cycle with a strong electric motor
- Special contemporary style design that matches the youth identity
- Faster means of travel that is convenient and comfortable
The product is priced on the economical side keeping in mind the profile of the target market and hence is sure to beat the existing competition that have not launched products specifically for this segment.
The company would tie-up with local bike distributors in the New South Wales and Queensland area as it does not have a strong network there. This partner would help in local market sensing of demand and quick reach to the target segment. Thought the investments would be higher and the company would lose some control, the benefits outweigh these issues.
The promotion strategy for this product would be a composite program with the following things:
- Use the website and social media integration to create a viral campaign that creates a sense of interest and urge among the target market to know more about what’s in store for them.
- Run print ads in various schools, colleges, holiday destinations and adventure sports arenas to grab quick eyeball among the target population. These ads would help in creating an impression in the minds of the target population.
- Host various adventure sports events for creating interest among the off-roaders. Free participation and media coverage for the same is considered as style statement and hence a reason to participate.
- Introduce a promotional offer of up to 10% off for the first 100 orders for the bike that could be custom printed for the users. This would just be an introductory offer and once the market is captured the offer would be taken away.
In order to achieve the sales target as defined in the marketing goals, following measures would be taken:
- Establish stalls at various adventure sports events, college and schools events to introduce the product to the users, check their awareness levels and also give promotional offers to garner additional sales.
- In order to create better user interaction, initial users would be asked to tape their experiences and share it on the user forum for the benefit of other users. This would help them in purchase decision making.
- Additional compensation based on sales figures for the in-store sales person, which would motivate them to push to their limits and achieve the targets.
Advertisements & Promotions
As discussed in the promotional strategy section, the ads would be run in the following manner:
- Create two videos – one each for teenagers and off-roaders. The video for teenagers would show how the bike helps them in increasing the glamour quotient and also add to their convenience of travelling – all this at a low cost. The second video would have graphics stunting stills showing the relevance of the product for such events, exuberating sheer power. Both videos would be launched on various social media platforms.
- Print ads would be created and run through in various magazines and posters would be displayed at various places as described earlier. These ads would highlight the value proposition of the product so that target audience can directly relate to it.
- Various sports events that are to be hosted for off-roaders would give them free limelight of media coverage and a chance to try a new bike that is powerful and cost effective. On spot registrations for the products would attract the promotional discount of 10%.
- An initial 3 month promotional offer for registration of 100 bikes would include a 10% discount. If the targets are achieved within the timeline, the offer would be revoked.
The budget for the marketing plan has been divided on a rough estimate of prices for the various modes of advertisements and promotions employed in the project. The breakup of the cost components is more important than the actual value as reflected in the table below:
|Particulars||Media Vehicle||Weight of||Cost incurred per vehicle||Amount (in Rs.)|
|Internet Campaign||Social Networking:||45%||450000|
|Facebook Community Page, Teasers on the internet, Website|
|Print Ads||Billboards at various Events||35%||50 Billboards X 6 Months each||350000|
|Magazines||2 Magazines X Monthly Issue X 6 Months|
|Sales Promotions||10% off on first 100 registrations||20%||200000|
Since the goals have been set for the next one year only, the timeline for the project would be as follows:
- Start with the launch of the video for viral campaign on various websites like Facebook, Youtube etc. Both the videos would be launched in a period gap of one week and would continue to be present there forever.
- At the same time, community pages on Facebook would be created for user discussions and participations and free forum participation on company website would be started.
- After a period of half a month, various billboards would be placed near the schools. Colleges, adventure sports arenas and at various adventure events. This would be placed over a period of 3 months across the two cities.
- Magazines on sports and adventures would also have print ads following the same timeline as that of the hoardings.
- The promotions would start from the day the print ads are run till the next three months.
- Once this first quarter of operations is over, a review would have to be conducted. This review would be in two parts – first a consumer research to analyse the level of awareness and knowledge that the target segment has garnered about the product range over this period of three months. Secondly, a review of sales performance over the last three months. Both these reviews would help in understanding the effectiveness of this plan which would have to be revised accordingly.
- If the quarterly targets have been achieved properly then the plan would continue would additional print ads for the next period of time.
- As a contingency, a user review would be taken about the product and necessary modifications would be made into the plan and the product.
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