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BHO1171: Introduction to Marketing Assessment 3B: Marketing Plan Product: Cargo Drive

Due date: 22nd October 2021

Table of Contents Introduction:................................................................................................................................................3

Marketing Objectives:..................................................................................................................................3 Marketing Strategy:.....................................................................................................................................4 Product:...................................................................................................................................................4 Price:........................................................................................................................................................ 4 Place:....................................................................................................................................................... 4 Promotion:...............................................................................................................................................5 Conclusion:.................................................................................................................................................. 5 References:..................................................................................................................................................6

Introduction: A small start-up company gaining a significant amount of recognition in the market for electric bicycles; Cargo Drive is an upcoming project for a unique idea of electric bicycles. Although

appealing for a niche market, Cargo Drive has stood its ground for having a unique product concept. Proper funding and well-qualified product developers; will be a key point for gaining their market position. In this report, a market plan will be formulated for Cargo Drive with the help of elements from the marketing mix. The Marketing Mix elements consists of Product, Price, Place, Promotion (Sharp,2017). The report will set out marketing objectives for Cargo Drive to set clear objectives and structure. Following up with eh objectives, the report will then look into the elements of the marketing mix.

Marketing Objectives: Without having a clear marketing objective, a company drifts away from its initial market strategy. The role of marketing objective is to, set marketing goals for an organization that is specific, measurable, achievable, realistic and time-bound (SMART) (Sharp,2017). An example of marketing objectives would be when an organization sets its marketing goals to; increasing sales, brand awareness, strengthen market positioning etc. Some of the marketing objectives set for Cargo drive are: 1. Build brand awareness through marketing and spend 20% of the marketing budget. 2. Increase sales for the product by 10% in a span of 1 year. 3. Increase the market share by 10% in 1 year

Marketing Strategy: Product: A product is anything offered by an organization to fulfil the needs and wants of its customers. As a result of a purchase, it leads to both physical and psychological satisfaction. In order to keep the product competitively marketable, we must make significant decisions about its function and design to ensure customers are satisfied with it (Sharp 2017). Products with unique characteristics contribute to brands that consumers remember by way of the brand name, the design, the logo, the colors, the labels, the packaging, and the symbols. Cargo bikes' target audience will find quite a few authentic features that make them stand out. It is also almost universally installable making it an innovative product unlike any other on the market. It was developed to help everyday people and bikers get more from their bikes (HUSKY Bike Tech, n.d.). Among the many notable and beneficial features of the Cargo Drive is its safety. The choice of being able to add it to your current bike and use it for either work, every day, and leisure causes consumers to believe that they can use it for almost any reason and has a good footprint on society sending a very clear message that environmental sustainability is extremely important to the business.

Price:

In many businesses, a product's price determines the amount of profit it will make from its sales. Setting a realistic and competitive price for the product is essential (Sharp 2017). To achieve sustained success with Cargo Drive, it is important to reduce the time and effort prices as well (Dominici 2008). Various methods can be used to accomplish this, including cost-based pricing, market-based pricing, value-based pricing, and geographical pricing. The direction that we have chosen for the Cargo drive is value-based pricing. According to Sharp (2017), users believe that the product should be valued according to what they perceive its true value to be. The global electric bike market was valued at $40,312 million in 2019 and is projected to reach $118,657 million by 2030, registering a CAGR of 10.5% from 2020 to 2030. Due to the COVID-19 pandemic, commuters are mostly avoiding public transportation (Allied Market Research, 2017). Cargo drive created a highly innovative product with few to no comparable competitors, which gives us the advantage of controlling the perceptions of what customers should pay for it as it is unlike any other vehicle in terms of simplicity and efficiency. To achieve this, we have focused on other parts of the marketing mix, such as its ability to be installed on almost any bicycle and its environmentally safe features, so that our consumers are more likely to see it as a product worth buying. Thus, the Cargo drive is priced at $1574.95. Also, by employing the odd-even pricing strategy into this. By ending the price with an odd number, this price, visually, is much more appealing to consumers and concedes them into thinking that the add-on piece isn’t $1575, but under it (Sharp 2017).

Place: In the elements of the marketing mix, “Place” can be represented as the location where the product can be purchased, such as retail stores, wholesalers etc. (Sharp,2017). Even though Cargo Drive doesn’t have a physical store, they have been selling their products via online stores. With a rising demand for online stores, there is a huge opportunity for Cargo Drive to expand its market share online. From August 2020 to August 2021, the eCommerce business rose by 24% (Australia post-2021). Even though eCommerce is a growing business in 2021, without having a physical store set up it might be challenging to make it work. Cargo drives need to decide the location of the stores based on the demographics within the area. They need to research whether the location they have set-up in have the targeted demographic or not.

Promotion: Advertising plays a vital role in the success of the product. It allows the business to directly reach their potential customers and inform them about the product. Advertisement is considered to be a weak force, but it is an effective method to reach the targeted audience for a business. While promoting the product, it should be distinct from others as it is essential for buyers to remember the product and recognize the company. With 20% of the marketing budget, Cargo drive will focus on social media marketing more than traditional media. The main reason is, there is a total of 3.78 billion social media users worldwide in 2021 and still increasing (Oberlo 2021). Instagram, Facebook, Reddit, YouTube are some common social media platforms that have a huge number of users. With social media advertising being so cheap, it is a great opportunity to market Cargo Bike to the targeted

demographic and psychographic audience. With Cargo Drive already having a promotional video on YouTube with over 7,700 views, it has reached a lot more potential customers all around the world. It is a good step towards successful promotion. Social media being able to reach 1000 people for less than $3, investing $40,000 would mean that the Cargo Bike can be advertised to the whole world with minimal expenditure. This will increase sales and give a huge brand exposure to the company in the market. This also helps the company to increase its market share over time. Therefore, with these strategies, we expect our marketing objectives to be completed over time.

Conclusion: It is important for a business to set out its marketing objectives before diving into strategies and plans. Objectives can help a business have a clear vision of its goals in marketing. With marketing objectives, the report was able to set up a good strategy for Cargo Drive revolving around the elements of the Marketing Mix. Using the appropriate media to reach the audience will be one of the key factors in completing the marketing objectives set for Cargo Drive.

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References: Sharp, B 2017, Marketing: theory, evidence, practice, 2nd edn, Oxford University Press, Melbourne

Allied Market Research. (2017). Electric Bikes Market, https://www.alliedmarketresearch.com/electric-bikes-market Corkindale, D, Lenders, M & Radel, K 2017, ‘Developing and implementing a marketing plan’, Marketing: theory, evidence, practice, 2nd edn, Oxford University Press, South Melbourne, Victoria, Australia, pp. 558–601 Kennedy, R, Sharp, B & Harnett, N 2017, ‘Advertising’, Marketing: theory, evidence, practice, 2nd edn, OUPANZ, Melbourne, pp. 558–601. HUSKY Bike Tech. (n.d.). Electric Cargo Bike Kit - CargoDrive Electric Front Rack. [online] Available at: https://www.huskybiketech.com/. Oberlo 2021, “How many people use social media in 2021?” , Oberlo, Viewed 22nd October 2021, https://www.oberlo.com/statistics/how-many-people-use-social-media...