E-Bike Marketing

Jopo Irish E-Bike Marketing Plan

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I/We declare that all materials included in this project are the result of our own work and that due acknowledgement has been given in the bibliography and

references to all sources be they printed, electronic or personal. All group members contributed equally to this work.

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Group C2 21/04/2015

Aysha Shibaniya Schamnad (14203387) _____________________________________

Jordan McMahon(10328559)________________________________________________

Meghan Frazier (14207408)_________________________________________________

Nicholas Burns(11361531)__________________________________________________

Noona Happonen(14200756)________________________________________________

Qingjing Ye(14203427)____________________________________________________

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Table of Contents List of Tables and Figures .................................................................................................................... 4

Introduction ........................................................................................................................................... 5

Executive Summary ........................................................................................................................... 5

Terms of Reference ........................................................................................................................... 6

Key Objectives .................................................................................................................................. 6

Business Mission ............................................................................................................................... 7

External Marketing Audit ...................................................................................................................... 7

Macro environment ............................................................................................................................ 7

Political Factor ............................................................................................................................... 7

Economic factors ........................................................................................................................... 7

Socio-cultural factors ..................................................................................................................... 8

Technological factors ..................................................................................................................... 9

Ecological factors .......................................................................................................................... 9

Legal factors ................................................................................................................................ 10

Market Overview ............................................................................................................................. 10

Global Market and Growth Rates ................................................................................................ 11

European Market and Growth Rates ............................................................................................ 11

Trends .......................................................................................................................................... 11

Market profitability .......................................................................................................................... 11

Customer Analysis ........................................................................................................................... 13

Distribution Analysis ....................................................................................................................... 14

Competitor analysis ......................................................................................................................... 14

Internal Marketing Audit ..................................................................................................................... 16

Operating Result .............................................................................................................................. 17

Strategic Issue Analysis ................................................................................................................... 17

Market segmentation ....................................................................................................................... 19

Target market ................................................................................................................................... 21

Positioning ....................................................................................................................................... 22

Marketing Mix Effectiveness .............................................................................................................. 22

Marketing structures and system ..................................................................................................... 22

SWOT Analysis ................................................................................................................................... 23

Marketing Objectives .......................................................................................................................... 24

Strategic Thrust ............................................................................................................................... 24

Key Marketing Strategy Objectives ................................................................................................. 24

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Core Strategy ................................................................................................................................... 25

Target market ................................................................................................................................... 25

Competitor Targets .......................................................................................................................... 25

Competitive Advantage ....................................................................................................................... 26

Marketing Mix Decisions .................................................................................................................... 27

Product ............................................................................................................................................. 27

Price ................................................................................................................................................. 28

Place ................................................................................................................................................ 28

Promotion ........................................................................................................................................ 29

Organisation and Implementation ........................................................................................................ 30

Organisation .................................................................................................................................... 30

Implementation ................................................................................................................................ 31

Control ................................................................................................................................................. 32

References ........................................................................................................................................... 33

Appendix ............................................................................................................................................. 37

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List of Tables and Figures Tables Table 1- Porters Five Forces

Table 2- Competitive Overiew

Table 3- Budget

Table 4- Market Overview

Table 5- SWOT

Table 6-Boston Matrix

Table 7- Competitive Scope

Table 8-Event Roll Out Schedule

Figures Figure 1- EU Rules and Regulations

Figure 2- E-Bike competitor Price Advantage

Figure 3- Irish E-Bike Market Share

Figure 4- Target Market

Figure 5-Organisation Flow Chart

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Introduction Executive Summary

This report intends to highlight and explore the potential market for Jopo’s electronic bicycle

(E-bike) in Dublin.

The Irish economy is on a road to recovery and the consumers are slowly increasing

consumption. As the spending increases, consumers are looking for immersive consumer

experiences and fluidity in the purchasing process. The government has made sizeable efforts

to increase cycling and in the recent years cycling has indeed increased. E-bikes are slowly

making their way to the Irish market, but the market still lacks a clear brand presence. All of

these factors indicate that the time is right for Helkama Velox to bring its popular brand, Jopo

into the Irish market. The current market prospectives can, in fact, provide profitable for the

Brand and its product Jopo Electro 3-V.

C2 Marketing intends to utilise the brand’s already successful marketing strategy in Ireland

and create a whole new Jopo culture and community in Dublin. Through the market

segmentation, two groups were identified as the target market, Students and Young

Professionals between age 18 to 34. Both of these groups tend to follow fashion trends and

use social media as their communications channel. This is an advantage to the brand because

part of its appeal is the colourful and fresh product design. The product will be positioned in

the market as something that the consumer ‘want’ but in addition it is functional, which

encourages to the consumer to purchase it.

As the brand moves into the market, it will face many issues. One being the lack of cycling

culture, which it can combat by creating its immersive Jopo culture. Another issue is the lack

of distribution channels. To combat this, it is proposed that Jopo uses newly identified

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retailers, specifically targeting two in the Dun Laoghaire and City Centre areas. This allows

easy access to its target market. When it comes to Jopo’s competitors, it is important that the

brand stays loyal to its image and focuses on the quality of its product and the uniqueness of

its design.

Jopo’s marketing campaigns will not be conventional because C2 Marketing wants to respect

the brands decision not to invest in print advertising. Instead, the product will gain a huge

amount of visibility via public events and social media presence. C2 Marketing is

recommending that this strong brand awareness and locally embedded approach is kept when

moving the Jopo E-bike into the Irish market.

The key marketing objective is to gain a 8% market share during the first year of operation

and a further 2% increase after that. This will be accomplished through grassroots marketing

and by interacting with the Irish consumers. Jopo will bring colour and playfulness into the

market and its Jopo Electro 3-V will stand out as smile becomes a standard in cycling.

Terms of Reference

Jopo has expressed interest to expand its operations to the Irish market in the month of May

2016, with specific concentration on its Jopo Electro 3-V. C2 Marketing has provided

qualitative and quantitative analysis of the venture. As a result, a marketing strategy has been

penned

Key Objectives

1. To carry out both qualitative and quantitative analysis of the current E-bike market in

Dublin.

2. To identify where the product range will fit best, identify potential locations and to

segment the market for Jopo.

3. To suggest a budget of proposed operations such as targeting events, promotions.

4. To devise strategy and marketing plan.

5. To present the findings and proposals to Jopo

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Business Mission

Jopo’s primary aim is to not only

manufacture high quality, fun bikes

and e-bikes but to truly embed those

bikes into the spirt and astatic of the

local community. They will always

endeavour to capture the

imagination of the user with its

timeless look and functionality. As

Jopo looks to expand its market into Ireland their integral spirt and dedication to their slogan

“Smile as Standard” will never be compromised.

External Marketing Audit

Macro environment The macro environment provides the framework for internal operations of the marketplace

and influences the actions of individual companies, thus PESTLE analysis is key for

examination of the Irish market to see if it is worth Jopo attempting to introduce its E-bike to

it.

Political Factor The Irish government is involved in cycle-to-work scheme, which aims to increase cycling

among professionals. Participants can save up to 51% on the bike of their choice and E-bikes

are included in the plan (IBBA, 2011). Despite the savings, the success of this scheme has

been underwhelming (Claude and Peterson, 2014). In addition, The National Cycle Policy

Framework (NCPF) aims to build a sustainable cycling culture by building better

infrastructure, educating the population about safety, image and common conceptions, and

marketing the health benefits of cycling. While Jopo will not be directly taking part in these

initiatives, any improvements in the safety and image of the cyclists in Ireland will benefit

Jopo since it will make the brand more desirable to consumers.

Economic factors Ireland is emerging from a serious downturn that affected all areas of the economy. The

recovery process has been impressive and in 2013, personal disposable income rose 3.3%,

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which resulted in an increase in customer confidence, peaking at +12 in September 2014 (The

Marketing Institute of Ireland, 2014). This is positive for any potential start-ups or investors

in the Irish consumer goods industry. For Jopo improvement in the economy is good news

(see Appendix A, for an outlook of the Irish economy). Investment is up (+10.0% in 2015)

and unemployment down (10.0% in 2015) which indicates that the market opportunities for

premium goods are starting to look positive (Power, 2014).

The benchmark interest rates in the Eurozone have dropped to 0.5% (TradingEconomics,

2015), which would increase consumer spending.

Since December 2014, Ireland has experienced deflation and in March 2015 it hit 0.6%

(Taborda, 2014). This could negatively affect Jopo as deflation can reduce profits, where

goods are sold undervalue, which subsequently can have knock-on effects on areas such as

employee wages and even employment. Ireland is set to experience inflation for May 2015

and the following months (TradingEconomics, 2015).

Another aspect of deflation is on the consumer's side; deflation makes it seem like their

money is going further in the short run. This is due to the lagging effect of market

adjustments; their wages will stay the same, but the price of the goods is going down. This

has the potential to increase consumer spending.

Socio-cultural factors 27.75% of the Irish population lives

in Dublin County (CSO, 2011). See

Appendix B for the population by

age groups. Cycling as a mode of

transport is still relatively

underutilised (CSO, 2012) because

there is a clear lack of cycling culture. Cycling Ireland (2015) has around 400 events in its

event calendar. However, many of the events are competitive in nature or focused on raising

awareness for a specific cause. The lack of cycling culture is not necessarily a threat to Jopo

because the brand has constantly separated itself from a typical cycling culture that is either

viewed as a method of transportation or a sports activity. However, Jopo should be aware of

these conditions when transitioning into the market.

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Consumer values and trends are aligned with Jopo's values, which highlight the importance

of community and the shared experiences. BordBia study (2014) suggests that one of the key

drivers in the consumer's buying decision process is fluidity and simplification. Choices and

the availability should be made easy to consumers with busy lifestyles. Consumers want to

have fun and the creation of immersive customer experience; belonging and sharing

experiences are important values.

In the BordBia study (2014) it is also noted that the consumers have become more

environmentally friendly and more aware of their health, which even further benefits the

brand.

Technological factors Innovation is driven by technology, and technological changes have had, and continue to

have, a knock-on effect on the E-bike industry. Jopo is meant for the urban environment.

Because of this some of the developments do not have a major effect on the brand that aims

to produce a simple and easy-to-use quality product for its consumers. Having said that,

developments in the Irish market are constantly being followed, and new technologies will be

implemented based on maintaining a convenient top-quality product.

Currently, there are multiple mobile applications that directly impact the brand. These

applications vary from mapping to calorie counting. Any improvements and increase in

mobile applications is naturally in Jopo's best interest because it indicates that the consumers

are cycling more.

Ecological factors Jopo's manufacturing does not take place in Ireland and

as result; many of the ecological factors do not affect the

brand. However, Helkama Velox and Jopo as a brand are

dedicated to following all national and European Union

(EU) regulations in regards to sustainability and climate

change. All packing materials will be made from

recyclable material and because the bike is rechargeable, its carbon footprint is very small.

As a mode of transport, cycling is extremely environmentally friendly, and as noted earlier,

the consumers are becoming more aware of environmental issues. However, travelling to

work by car remains popular and according to the Census 2011 (Central Statistics Office,

2012), 55% of the commuters living in Dublin drove to work by car while only 5.9% cycled.

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Legal factors

Figure 1. EU rules and regulations

In order to be categorised as a bicycle, E-bikes must apply all the qualities listed in figure one

(Kenbay, 2015). Jopo Electro 3 V. meets all these requirements, and it is categorised as

pedelecs.

Market Overview E-bikes are part of the global electric two-wheel vehicle market within the consumer durables

section. Other products include E-scooters and E-motorcycles and despite the rapid market

evolution, E-bikes remain a niche product. The global market for the E-bikes is broad due to

the number of variations in terms of motors, batteries, colours and designs that are used.

To derive the estimated Irish market for E-bikes, United Kingdom figures were used

(Peace,2014). Based on the United Kingdom market size it was concluded, that in 2014

roughly 3,500 units1 were sold in Ireland. This figure is relevant due to the similarities in

cycling culture between the two countries.

1 This number was derived by dividing the UK market by the British population. The result was then multiplied by the Irish population: 49,000/64.1 million. X 4.8 million.

Max Weight 40 kg

Maximum Speed 25 mph

Maximum con?nulous

rated power of 0.25 kw

Pedal assisted cycle:motor stops when

pedalling stops

Fully Func?onal Pedals

EU E-‐Bike Requirements

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Global Market and Growth Rates In 2013, global sales reached 40 million E-bikes with China as the world's largest producer

covering 85-90% of the market (Hurst and Wheelock, 2010). Strong demand and a robust

differentiation strategy contributed to many companies’ successes within China.

The Global market for E-bikes has experienced a rapid growth since early 2000. In a global

study, Hurst Wheelock (2010) forecasted a further growth increase within the next three

years and a global compound annual growth rate of 7-8% accumulating in 2018. According

to the report, China is set to keep its top position with a forecast of 42.5 million units in 2018,

the highest figure of the total global market. Western Europe will take second place.

European Market and Growth Rates In line with global trends, E-bikes have also seen a strong growth in Europe, in the last

decade. The standard bicycle market, however, has declined. Figures produced by European

Cyclists’ Federation (2015), show that sales have increased in top geographic markets, which

include Netherlands, Switzerland, and Germany.2 According to Hurst and Wheelock (2012,

pp. 2), ‘Western Europe will account for 3.4% of the global E-bike marketplace by 2016,

generating 12% of the revenue from the global market.

Trends Trends that contribute to the growth of E-bikes depend on the external environment of the

geographic location. In China, the urban landscape aids E-bike popularity, as a source of

transport, due to area’s dense population. In addition, socio-economic conditions, such as

growing wealth and high technological developments increase demand within the country.

The green movement and fitness trends also aid growth particularly in areas such as Europe

and the United States. Cultural trends are also a factor. In Western Europe, Germany, and the

Nordic countries, there is a large cycling culture. This will be key in examining the entry of

Jopo into the Irish market as Ireland has a relatively low cycling culture compared to Finland.

Luckily for Jopo, E-bike sales have increased in the UK, which shares similar attitudes

toward cycling as Ireland (Walker,2012).

Market profitability To determine the profitability of the market, Porter’s Five Force analysis has been used (see

Table 2). The analysis concludes that for an established company and brand, entering the

Irish market can be profitable because an enormous start-up investment will not be necessary.

2 In the Netherlands E-bike purchases elevated by 9% while in Germany sales were up 8% from 2012 to 2014

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Since Jopo has already established a strong brand image in Nordic countries, and it is

strongly focused on its brand, the market offers possibilities for profit earning

1.Bargaining

Power of

Suppliers

Moderate

All Jopos are manufactured in Finland in Helkama Velox’s factory and

then exported to global markets. Raw materials and rest of the

components (including gears and breaks, etc.) can be purchased from

multiple suppliers, which gives them a little bargaining power. Besides

this, switching from one supplier to another is easy, and there is a small

threat of supplier forward integration.

2.Bargaining

Power of

Buyers

High

The bargaining power of the buyers is quite high due to the restriction in

the distribution channels. However, the consumers are not highly

concentrated, which has an effect on the market. The consumer also has

the option to choose a cheaper substitute, which in turn increases their

bargaining power. From the manufacturer point-of-view the bargaining

power remains high despite the consumers’ power.

3.Substitutes

Moderate

A normal bicycle is the closest substitute to an E-bike. Since most of

them are cheaper, the switch to the substitute can be more attractive

option during a downturn. As a mode of transport, also public transport,

motorcycles and cars are substitutes. The two latter require a higher

investment, and the consumer must also have a license to operate them,

which makes the switch more difficult. In that sense, public transport

poses the biggest threat as the switching cost is affordable, and the

consumers might be attracted to the easiness of the option.

4. Threat of

New Entrants

Moderate

Because of deregulation, the lack of big brand names and the existence of

small companies, barriers to entry is relatively high. However, adding to

that, the entrance to the market requires a high capital investment and the

distribution channels are restricted, which creates barriers for new

entrants.

5. Rivalry

Moderate

Some of the factors in the market indicate that the industry rivalry is low.

The E-bike market is still relatively small, which means that there are a

small number of competitors. Many of the companies manufacture

normal bicycles and because of that the barriers of exit is low. However,

the market is lacking a clear leader; brand loyalty is insignificant, and

many of the bicycles are similar because of regulations. For an

established company and brand, entering the market can be profitable

because an enormous start-up investment will not be necessary. Since

Jopo has already established a strong brand image in Nordic countries,

and it is strongly focused on its brand, the market offers possibilities for

profit earning.

Table 1- Porter’s Five Forces

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Customer Analysis Jopo’s target market in Ireland is Students and Young Professionals (between the age of 18-

34). Jopo E-bikes are a ‘want’ based-product thus the aim is to market it as a fashion trend, a

‘must-have’ item rather than fulfilling any transportation needs. Thus, the buying process is

not a completely individual one; the persuasive forces surrounding customers also have to be

acknowledged.

Students may not be financially stable.

Therefore, the Jopo E-bike should to appeal to

the Decider, i.e., the parent(s) or Guardians(s).

Savings on transport cost in Dublin, which

usually run up to around €1,200 a year

(Numbeo), may persuade the Decider. In

addition, the student no longer has to depend on

other transportation. While appealing to Students, there must be consideration given to the

social factors, i.e. the students’ peers who are the Influencers. Due to the colourful and

innovative nature of the E-bikes the product should appeal to this demographic.

Young professionals’ purchase decision process

differs slightly. They are more financially stable. They

are the ultimate decider; however they may have

spouses whom they may consult in their decision-

making process. Co-workers may also be influencers

over the young professionals and become a persuasive

force in purchasing the E-bike.

This report suggests that the initial buying process for

both target markets shall be primarily based on

consumer culture theory (Arnold and Thompson, 2005).

The latter suggests that buying is less rational and rather a socio-cultural act. Secondary

buying processes lies in an information processing approach, which relies more on rationale.

While the aim is to market the product as a trend, the product is also a functional purchase. In

the decision-making process, while primary buying process will be captured, the secondary

option needs to be kept in mind.

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Distribution Analysis One barrier to entry worldwide and particularly in Ireland is caused by the limited number of

distribution channels in the market. However, recently there is a growing number of

companies importing bikes into Ireland. Because the product is manufactured in Finland and

exported to Ireland, the distribution will usually depend on independent retailers.

In Ireland, the E-bike industry is small with less than ten distributors. In the county of Dublin,

the main distributors are individual retailers including Greenaer, CI E-bike, Kenbay, and Go-

Electric. The issue with having a small number of retailers in the market is that once they

adopt one brand of E-bike for distribution they will not adopt another. Thus, Jopo will need to

attract a new distributors with no previous experience in the market. The main manufacturer

in Ireland is Halford plc. This is a threat considering Halfords huge brand recognition in

Ireland. Halford has its privately owned distribution channel, which gives it a competitive

advantage in the market.

Competitor analysis Direct competition: There are four main competitors in the Dublin market, who are currently

providing E-bikes. They are Greenaer, Ci Ebike, Kenbay Electric Bikes and Go Electric.

While other retailers providing conversion kits, these four groups are the main existing

competition. Most of the competition is located in the city centre, excluding KenBay Electric

Bikes, that is located in Tallaght. There is a clear absence of E-bike presences in the Dun

Laoghaire-Rathdown area. See Table 3 for the competition overview.

Competition Targeting Price/quality Strengths Weaknesses Competitive advantage

Greenaer Leisure, commuters

Expensive/high quality

- Market leader and the largest supplier - Wide variety of brands - Distribution channels - Offers repairs

- High prices - Lack of branding

- Differentiation

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Ci eBike Commuters Reasonably priced/good quality

- Supplies used bikes - Repairs - EU market leader - Nationwide

- Lack of branding - Offers cheap quality E-bikes - Lack of focus in competitive advantage

- Differentiation - Low cost

KenBay Commuters Average price/average quality

- Product variety - Rentals

- Lack of branding -No repairs

-Differentiation

Go-Electric Functionality and commuters

Reasonably priced/high quality

- Supplies brand E-bikes - Multiple locations in Ireland - Corporate buyers

- Lack of branding - No repairs

- Differentiation

Table 2. Competition Overview

Potential competition: Cheap Chinese E-bike companies and other small companies are the

main potential competition. However, while the cheap E-bikes might appeal to the consumer,

the lack of branding and the quality of the product might not seem attractive to the customer.

Due to the barriers to entry, the access to the market would require a big investment, which

makes the access to small companies quite difficult.

Figure 2 shows the range in prices charged for current E-bikes in the Dublin market.

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Figure 2: E-bike competitior price range in Dublin market.

Figure 3: E-bike market share

Internal Marketing Audit

The internal marketing audit will acquire in-depth knowledge of the company’s internal

operations and performance, in order to review its competencies and abilities. The gathering

of this information will help in the process of creating an effective marketing plan for Jopo’s

E-bike to enter the Irish market.

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Greenaer Ci Ebike Kenbay Go Electric

E-‐Bike Compe4tor Price Ranges

Lowest Price

Highest Price

Market Share

Greenaer

Kenbay

CI Ebike

Go Electric

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RESEARCH 1000

PERSONNEL Promotion Team Salaries Project Manager 3000

Data Analyst 2400 Promotion Manager 3000 8400

OFFLINE MARKETING Public Relations 1000

Events Freshers Week and University Marketing Sep-16 3800

Colour Run Jun-16 800 Dublin Pride Jun-16 1000 Electric Picnic Sep-16 2000 4800

OVERHEAD & ADMINISTRATION Telephone Charges 870 Exporting Costs 11,300

Table 3: Budget

Operating Result During the first year in the Irish market, an estimated 300 units will be sold. This would

mean that Jopo would achieve 8% of the current market. This would result in roughly

€500,000 in revenue. Since Jopo is manufactured in the Helkama Velox factory, it benefits

from economies of scale, which leads to higher profit margins. The accessories are projected

to increase the final revenue around €75,000. Since Jopo is completely new to the Irish

markets, these numbers are extremely cautious. After the first year, it is predicted that jopo

will increase its market share by 2% as it introduces more colour options.

Strategic Issue Analysis

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The recovering economy provides a good opportunity for Jopo to venture into the Irish

market. The brand has already managed to gain profitable niche position in the UK market,

which is in nature fairly similar to the Irish. The government initiatives, including cycle-to-

work scheme and the NCPF, aim to increase

cycling in Ireland and according to the 2011 Census

(Central Statistics Office, 2012), cycling has seen a

9.6% increase since 2006. However, the attitudes

towards cycling and cyclists are still lagging

behind, and a successful marketing campaign

should aim to increase the interest towards cycling

and address these negative attitudes.

Jopo’s brand has always been about individuality

and standing out. At the same time the people who

own a Jopo, belong to the Jopo community, which is all about having fun and enjoying life.

The brand values are clear: authentic, simple and timeless (Helkama,2013). As mentioned

before, the consumers are currently looking for immersive customer experiences and the

sense of belonging is an important factor. Jopo has all the necessary qualities to appeal to the

consumer, but there are some major issues that must be addressed. One of which is how to

interact with the Irish consumers and how to make Jopo part of the Irish culture. While the

brand has managed to accomplish a following in its national market and other Nordic

markets, this does not guarantee success in the Irish market. Since the marketing of the Jopo

Electro 3-V is going to focus on selling the product as a ‘must-have’ product, it is detrimental

that this issue will be addressed.

Jopo will continue to pursue its differentiation competitive advantage with a narrow scope. In

doing this, it will face a threat from other existing companies that are pursuing the same

strategy. In gaining its market position, Jopo has to position itself in the market, in a way that

will create a barrier to imitation. The product’s core competencies lie in its functionality and

emotionality. The E-bike is easy-to-fix, and both distributors will offer servicing for it. In

addition, it is extremely user-friendly, which makes it easy to use. Emotionally the product

appeals to the customer because it is colourful, authentic and fun.

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Market segmentation Identifying the right market segments is important because it will increase focus in the

marketing process. C2 marketing has kept Jopo’s brand values and core competencies in

mind and segmented the Irish market (see Table 5). All data was collected from the 2011

Census (Central Statistics Office, 2012).

Geographic segmentation

39% of the population lives in Dublin and its suburbs 57% of the people living in Dublin, live in Dublin city

and Dun Laoghaire –Rathdown 3 out of 53 top universities are located in these area,

including Dublin Institute of Technology, which ranks 8th on the list of top universities in Ireland

Aound 44% of all students study in Dublin

3 Trinity College Dublin, University College Dublin and Dublin City University (TopUniversities, 2015)

Dublin City

Dun Laoghaire-‐Rathdown

Fingal

South Dublin

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Demographic segmentation: Dublin City

Unemployment rate slightly lower than the national average

33.5% of population are students aged 15 and over 7.25% cycle to work, school or college 23% use public transport 34.4% of the population are between 18-34 of age

Demographic segmentation: Dun Laoghaire-Rathdown

Low unemployment rate 34,9% of the population are students aged 15

and over 5.15% cycle to work, school or college 23% use public transport 26% of the population are between 18-34 of age

0

10000

20000

30000

40000

50000

60000

70000

0-‐4

10-‐14

20-‐24

30-‐34

40-‐44

50-‐54

60-‐64

70-‐74

80-‐84

Female

Male

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

0-‐4

10-‐14

20-‐24

30-‐34

40-‐44

50-‐54

60-‐64

70-‐74

80-‐84

Female

Male

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Behavioral segmentation: Students and Young professionals (Age 18-34)

Increasingly brand loyal (Eder,2013) High focus on social media Majority are adaptors (Tucker,2011) Influencers are the second largest group Majority pays for their purchase Price influences the purchase decision Quality is important Focus on the design of the product and

its functionality May not be the (only) Decider

Table 4- Market Overview

Target market Two groups have been identified as Jopo’s target market (see figure 4). The decision was

based on market segmentation, which showed that both groups were highly present in the

chosen geographic locations and their purchase behaviour has many similarities.

Figure 4: Target market

Stud

ents

• Students living 2-15km radius of their campus

• Students who currently walk, cycle, or use public transport

• Main focus on students who do not live with their parents

• Age group 18-34 • High focus on social media • Trend followers

Youn

g professio

nals • Young professionals who

travel between 2-15km to work

• Who currently walk, cycle, or use public transportation

• Trendsetters • Age group 18-34 • High focus on social media

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Positioning Jopo will be positioned in the market as a ‘must-have’ urban E-bike. It will appeal to its

target market because it is functional, yet fun. ‘Made in Finland’ will be marketed as

representing the product’s high quality, which makes it a smart investment. The high level of

online presence will give the customers the opportunity to interact with the brand. While the

events that Jopo takes part in will create visibility and allow the consumers to physically

interact with it.

The key issue is to use Jopo’s strengths when moving to a new market. This is why the

segmentation and positioning are consistent with Jopo’s strategy in Finland. In Ireland, its is

inevitable to distance the E-bike’s image as part of the Finnish society and instead turn the

‘Made in Finland’ into a guarantee of high quality.

Marketing Mix Effectiveness

To create the most effective marketing mix, C2 Marketing acknowledges that it has to meet

the specialised needs of the target market, to meet and exceed the set marketing objectives.

By selling through strategically picked retailers, a large section of the target market will be

reached and both retailers will service Jopo bikes fast and conveniently. The chosen retail

partners will have training in all things Jopo, from brand to product, in order to more

effectively sell to the target market.

Without the correct product, the above mean nothing. The hand-made, Finnish E-bike by

Jopo will never be compromised in style, personality and above all quality. Customers of our

target market will come to not only expect, but value the durability and unique feel of their E-

bike. Staying true to Jopo’s vision of locally embedding products and little to print

advertisement, C2 marketing will find the perfect community events, groups and promotions

to keep the integrity and spirit of the brand, Smile as Standard, intact.

Marketing structures and system The main focus in Jopo’s introduction to Ireland is content and product marketing. As

mentioned already, the approach will be very similar to what it is in Finland. However, the

marketing structures have to be flexible enough to respond to differences between the Irish

and the Finnish market. Constant monitoring of the set objectives will take place, to allow

quick response to ineffective approaches.

23

SWOT Analysis

Strengths

• High quality, Finnish handcrafted

bicycle.

• Stylish appearance and unique

design.

• A global foothold with retailers in

Finland, Denmark, Germany,

Iceland, Sweden and United

Kingdom.

• Leading position in Finnish

market.

• Active and strong social media

presence and following

Weaknesses

• Undifferentiated standard e-bike

feature’s in relation to Greenaer,

Kenbay.

• Does not run print and media

campaigns.

• For the target demographic, the

cost of the bike at 1799 is high.

• Strong pre-occupation with being

a Finnish brand might not

translate internationally as a

positive to those looking to buy

domestic.

Opportunities

• E-bikes sales are booming in

Eurozone,

• A developing market such as

online business.

• Increased goods consumption as

economy in Eurozone starts to

improve.

• Move into a new international

market.

• An increasingly health

consciousness of consumer.

Threats

• Existing competitors having

strong market control.

• Competitors have superior access

to channels of distribution.

• Existing companies have superior

economies of scale and bargaining

power.

• Competitors have wider selection

in terms of price points for

customers.

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Marketing Objectives

Jopo currently lies in the expansion stage of the business life-cycle. This is clearly evident in the

company’s development into new marketplaces and distribution channels across Europe: most

recently Germany and France. The company’s primary motivation rests in increasing its market

share within the E-bike segment of the business, thus increasing modes of revenue and profit.

This is ultimately to serve the generic goal of increasing shareholder value. The main short-term

objective is to capture 8% of the Irish market. After this further 2% increase is planned, once

more colours enter the market. The long-term objective is to create a strong niche position for

Jopo.

Strategic Thrust

Stage One: Begin with the introduction of the Jopo Electro 3-V to the Irish E-bike market.

Start with the three basic colours and with three additional colours. In addition to the E-bike,

bike accessories will be offered.

Stage Two: Engaging with the local community is extremely important to Jopo and its

success. Continuing the tradition, Jopo Ireland Facebook page and Jopo Ireland Instagram page

will be created. Each new customer will get an invitation to join these pages and post their

pictures and experiences online (see appendix C for an example). Jopo’s Irish social media

campaigns will mainly focus on events in Ireland with some focus on international and Finnish

news regarding Jopo and cycling.

In addition to the social media campaign, Jopo will work closely with the local community, in

events such as Dublin Pride and Rainbow Run. The main aim of the brand is to make it as much

part of the Irish

Stage Three: After the initial introduction to the Irish market, more colour options should be

introduced.

Key Marketing Strategy Objectives

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Following the Boston Matrix structure (Build, Hold, Harvest and Divesting) we have set

strategic objective for the sales of Jopo E-bikes move into the Irish market.

1. Build By carefully selecting and establishing sustainable distribution channels, Jopo will be able to build a core business in Ireland. The retail partners’ strategic location and knowledge, along with the extensive social media network will instantly help to jumpstart and drive sales of the E-bike.

2. Hold In order to hold the business coming in, Jopo will aim to integrate the brand into the local community. C2 Marketing will endeavour to help it to do this by picking strategic community events and charities to align the brand with.

3. Harvest Jopo will look to harvest on not only the sale of the E-bike but the additional accessories sold. It will look to expand customer base with adding in additional colours for sales and features as the market in Ireland shows growth and treads in buying become measurable.

4. Divest As Jopo is just entering the market, a full divesting plan is not needed. Given the unlikely event that the market does not prove profitable Jopo can end the exportation of E-bikes into Ireland. Jopo will not have to invest in personal and resources here in Ireland so exit is feasibly an easy prospect if required

Table 7- Boston Matrix

Core Strategy Jopo is to achieve a unique market position in the Irish market by using differentiation as its

competitive advantage and focusing on a niche market.

Target market Jopo will exclusively target Students and Young Professionals living in Dublin. The goal is to

achieve a profitable position in the market and increase E-bike sales. How this of, is by

strategically appealing to consumers that spend a lot of time online and follow the latest

trends. Creating visibility will increase interest, which will then lead to sales. Adding to this

the functional nature and the prospect of the Jopo community, the product and the brand will

stand out. The consumers will not only want the product because it is functional but also

because they can make a fashion statement with it.

Competitor Targets

Jopo should have no problem in setting all existing competitors in the market as targets.

Some competitors should be more attainable in the short run as others may take longer to

overtake.

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Go Electric and Greenaer are the first that should be targeted as Jopo offers greater value for

money and Go Electric are currently trying to clear its E-bike range from 2014, suggesting it

may have experienced a lack of demand or inability to sell its product. However, it is

important the keep in mind that Jopo does not target the high-end customers, so instead it

should focus on highlighting its product quality and functionality.

Kenbay has production facilities in Dublin and is therefore quite attractive price wise, but in

terms of market share it is not as developed which provides Jopo an advantage.

Competitive Advantage Jopo pursues differentiation competitive advantage. It separates itself from the rest of the

industry due to its atypical brand image, which is less focused on cycling as a form of sport

or as a form of commute, but more focused on Jopo as a ‘lifestyle’ and as community. Its

narrow scope (see Table 7) allows it to focus on its target market by allowing the brand to

respond to consumer trends quickly. Jopo’s biggest strategic advantage is its ability to create

a unique market position. Instead of focusing on many different models, it applies similar

design in different colours. In its value chain, it creates savings by getting many of its parts

from different suppliers, which gives it more negotiation power (Helkama, 2013). Large

savings are also made in marketing, which requires only a small part from Jopo’s budget. All

marketing is mainly focused on creating visibility through social media and different

activities in urban areas. The savings in these areas are channelled to manufacturing and

design expenses, which in part create value for the customer.

Competitive Scope

Industry scope

Narrow -‐ Focused on

manufacturing bicycles

-‐ Nine different models

-‐ Very little

Segment scope

Narrow -‐ Urban focus;

Students and young professionals

27

spending on marketing

Geographic scope

Irish Market: Narrow

-‐ Available for purchase only in Dublin

-‐ Service only in Dublin

Vertical Integration Scope

Narrow -‐ E-bike motor

and battery purchased from Panasonic

-‐ Gears and hubs purchased from Shimano

-‐ Brackets purchased from Shimano

-‐ Wheels purchased from Weinmann

Table 7- Competitive Scope

Marketing Mix Decisions

Coming up with the correct marketing mix to correctly promote, price and place a product, is

vital to the success of the implementation. Below details the suggested marketing mix for

Jopo Electro E-Bike.

Product Despite the modern nature of an E-bike, the core look and feel of a Jopo bike has been

maintained in its electronic version: Helkama Jopo Electro 3-V, E-Bike Pedelec. As a

pedelec bike, it has a motor that is activated when pedaling begins. (See appendix D for

product description)

The Jopo Electro 3-V is currently in the maturity phase of its Product Life Cycle.(NEED

SOURCE). It is an established product with a customer base throughout the Europe. While

the company will be expanding its business into Ireland, the product itself is established and

set in its production and ascetic.

As with any technologically based product, E-bikes will continue to evolve over time,

possibly making the Electro 3-V inferior or obsolete in a few years time. However, it is the

hope of C2 Marketing and Jopo that the overall brand identity and quality will help bring

customers back for their next E-Bike at the decline end of the Product Life Cycle for this

particular unit.

28

Price The price of the Jopo Electro 3-V is consistent across Europe, and it is recommended to keep

it at that same price when sold by the Dublin retail partners. All bikes will be bought directly

through Jopo, which cuts out wholesale and intermediary expenses. This in turn allows

margins to not be eroded by extraneous costs and keeps the overall price of the bike down to

a more manageable level.

Price Elasticity needs to be considered when pricing these bikes. Especially in the Irish

market, the ease and availability of substitutes, such as trains and buses as forms of

transportation or cheaper competitor brands, means that consumers could decide to purchase

a more affordable brand or not purchase at all. Keeping the price of the bike consistent, and

competitive against other brands is reflective of the desire to reflect the price elasticity of the

product. If the bike becomes too highly priced, it could easily not be bought as it is after, all

despite its many conveniences, a premium product.

Keeping the price consistent also means that there is little to no benefit from buying online

from a retailer like Amazon, which is very competitive price wise. Additionally as other

countries import the bike, such as England and Germany, it shows that despite the

importation and transportation cost the price is set at a level that still makes the E-bike a

profitable venture for Jopo.

While the higher price point of €1,799 could be difficult for students, it offers fantastic value

for money. Jopo offers a 10-year factory warranty on its products.

Place As discussed previously, C2 has identified to specific locations to sell the Jopo Elektro 3-V

exclusively in Dublin. These partners have to be accessible to the target markets, have built-

in service centres to help assemble the bikes, and have a sterling reputation. Two retailers

has been identified: Cyclebike and The Bike Rack.

Cyclebike- City Centre Retailer

Cyclebike located on Mary Street in Dublin city centre.

Mary Street is easily accessible from Dublin’s busy street,

29

O’Connell Street, making the accessible by all methods of transportation.

The retailer is active on social media, with a Facebook page that is updated on a daily basis

and have more than 6000 likes on Facebook, so it has an extensive network.

More important is its reputation and the extra’s it offers. Cyclebike offers two years of

servicing on bikes purchased with them. Reviews praise not only the stock selection, but the

knowledgeable and friendly service. Jopo’s slogan, 'Smile as Standard' needs to be reflected

in those who sell the product. Cyclebike’s employees already embody that quality and have a

passion for cycling.

The Bike Rack- Dun Loughahire Retailer

The Bike Rack is situated on Jobstown road. Just a short walk from

the Dart station, Like Cyclebike, The Bike Rack has an extensive

social network and is extremely active on Facebook on a daily

basis.

Both locations will begin to carry the bikes in mid-May 2016, more than a month in advance

of the first planned marketing event for the brand. The bikes will be distributed to the

identified retailers directly from Jopo.

Promotion The overall promotions goal of C2 Marketing is to create brand awareness and interest in

Jopo products. The firm will endeavour to do this by utilising, and adapting Jopos’ current

strategic marketing plan that has seen massive success in throughout Europe. Jopo currently

runs a pull-strategy marketing plan. This essentially means it creates demand in its target

market for a specific product which in turn gets the product from channel partners.

(Webopedia). C2 Marketing believes it can translate the successful marketing strategy to the

Irish market by picking specific events that reflect not only the colorful aesthetic of the brand,

but bring together the target age demographic.

The promotional channels that will be utilised are:

30

1. Social Media –Jopo already has a strong social media presence and will look to move

that into Ireland by creating dedicated Facebook, Instagram and Twitter pages. The retail

partners that have been chosen will run campaigns of their own and reach their almost 10,000

combined Facebook followers. The retailers will be advertised clearly on all Jopo specific

pages in order to help get customers to the retail location for purchases.

2. Community Visits – These will be promotional events at specific locations, such as

University and business plan.

3. Community Events- Specific events that attract the target age demographic and reflect

the brand presence, will be targeted. Echoing Jopo’s commitment to community pride,

promotions will always strive to raise charitable funds through rations and promotions with

Jopo at these events. The community needs to see Jopo as a fixture and investor in the

community

Organisation and Implementation

Organisation The organisation of this marketing plan will be overseen by C2 Marketing and an external

promotions team. The firm will select the retailers and then oversee all promotions and

advertisements undertaken to promote the brand and E-bike in Ireland.

For staffing at all events, an external promotion team from Dublin will be used. After

approval of the marketing strategy, an external promotions team will be identified by its

costs, availability and reputation for running events like the ones approved. The promotions

team will answer to C2 Marketing on how to run all promotions. The firm in turn will need

approval on any promotions by the Jopo marketing department already established in

Finland. Jopo will ensure that all promotions run reflect the current, and successful, brand

marketing and strategy it currently has.

31

Figuare-5- Organisation Flow Chart

Implementation The first step in moving Jopo e-bikes into the Irish Market is first identifying the correct

retailers to partner with.

Both the city centre and Dun Laoghire locations will begin to carry the bikes in mid-May

2016, more than a month in advance of the first planned marketing event for the brand. Both

locations will run active social media campaigns, and contests in order to advertise the bikes

in a similar fashion to how Jopo harnesses social media in Finland currently.

To move their innovative e-bike into the Irish market the firm is proposing to have a Jopo

presence at several Dublin community events. These events are in line with their current

social media, grass roots marketing strategy

The following are a list of the proposed events and how they could be run in order to

showcase Jopo’s e-bike to full effect and introduce it in to the Irish market.4

4 Please see appendix E for the full description of the events

3. Firm Distriputes Promo?on Work External promo?on team will be selected off cost effec?veness and ablity to run the promo?ons

Firm supplies funds and monitors the promo?ons work.

2. Jopo Marke?ng Approves Promo?on

Jopo internal marke?ng department will review proposal and suggest changes Final approval on promo?on sent to firm

1. Firm Suggests Prom?on

Promo?ons iden?fied on ablity to reach core demographic in irish market Budget Suggested for the Promo?on

32

Event When Run By

Social Media Launch April 2016 C2 Marketing and Jopo

Bikes in Store May 2016 Retail Partners

Colour Run June 2016 Promotions Team

Dublin Pride Festival June 2016 Promotions Team

Electric Picnic September 2016 Promotions Team

Freshers Week/University Visits September-October 2016 Promotions Team

Targeted Work Place Visits September-October 2016 Promotions Team

Table 8- Event Roll Out Schedule

Control

How well a plan is implemented and managed can determine its overall success. Entering a

new market has many unknowns, lots of room for misjudgment’s or miscalculations, but that

should be anticipated, and Jopo needs to possess the ability for flexibility in plans to react to

different potential outcomes.

1. Division of the plan-This plan needs to reflect all aspects of the business, from the top to

the bottom. A contingency plan needs to be developed also to fall back on when problems are

unresolved.

2. Implementation- Clear goals need to be set as they set the course of action. These need to

be clear and decisive.

3. Collection and Evaluation of Data- Key Performance Indicators should be adhered to and

analyse how Jopo has done in comparison to the goals it has initially targeted.

4. Action- When data has been collected from all aspects of the business, it needs to be

evaluated. This will show where the business currently stands and the performance of the

strategy. Further plans need to be devised to take the business to the next stage, whether that

is corrective measures or setting new goals to achieve higher results.

33

Importantly for control, it needs to be carried out regularly not just annually. This allows for

quick action and up to date plans to react efficiently. C2 marketing suggests bi-weekly

meetings in order to carry out this course of action and keep short term goals. For long term

goals, changing market conditions need to be acknowledged in terms of new competitors or

new technologies.

Important aspects of the control process will include target sales, customer feedback, the

budget and market share.

Finally, it is acknowledged that such a rigorous control process is time-consuming for

managers. C2 Marketing aims to make this process as automated as possible. The data will be

made easily presentable to the relevant managers in order for them to make the best decision

possible.

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Appendix

Appendix A.

Outlook of Ireland’s economy (Power, 2014)

38

2013 2014 2015 GDP +0.2% +2.5% +3.8% GNP +3.2% +2.0% +3.2% Consumption5 -0.8% 1.4% 1.6% Investment -2.4% +8.5% +10.0% Gov. Net Expenditure

+1.4% -1.0% -0.5%

Exports +1.1% +3.8% +4.5% Imports +0.6 +2.0% +3.5% CPI +0.5% +0.6% +1.5% Unemployment 15.1% 11.4% 10.0%

Appendix B.

Population by age group, Census of population 2011 (CSO)

Age group Both sexes Male Female 0-14 979,590 501,189 478,401 15-24 580,250 290,898 289,352 25-44 1,450,140 717,055 733,085 45-64 1,042,879 520,243 522,636 65 years and over

535,393 243,415 292,079

Appendix C

5 Source: Central bank of Ireland, 2014

39

40

Appendix D. E-Bike Specifications

Jopo Electro E-Bike Specification MINIMUM HEIGHT OF

RIDER 136 cm

BOTTOM BRACKET Sugino 165 mm FRONT FORK Hi-Ten

REAR SPROCKET 3/32 CHAIN : 3/32"

FRONT/REAR BRAKE Hand brake (V-brake) CENTRE BEARING Panasonic 07

TIRE SIZE 24 FRAME HEIGHT 45 cm AL

GEARS Shimano Nexus 3-speed RIMS/TYRES ZAC 2000 / 47-507

Appendix E. Detailed discpriton of Proposed Promotions

FRESHERS WEEK AND UNIVERSITY MARKETING GIVE AWAY 1 e-bike RUN BY Promotions team WHEN Multiple freshers week- mid

September 2016 The promotions team will run a booth at the Fresher’s week of each university located in

Dublin. A “green screen” back drop booth will be set up for students to take a picture of

themselves on a Jopo e-bike. The student will then upload a fun and creative background on

the photo. These pictures will then be uploaded to the Jopo Instagram or Facebook page and

the most creative winner will be selected at the end of September to win an e-bike

TARGET WORK PLACE VISITS BUDGET Promotion Team Costs RUN BY Promotions team WHEN Throughout August-October 2016

The firm is proposing to reach out to companies in the Dublin area that have concentrated

amounts of the target demographic working for them. Examples of these would be Google,

Twitter and Ebay. The promotions team will go in to the companies with bikes, run

demonstrations, ask questions and refer the clients back to one of our two retailers depending

41

on the needs of the customer. The promotions team will be able to help generate the

certificates used for the cycle to work scheme immediately on site so that the prospective

customers are able to buy their new Jopo e-bike as soon as possible.

COLOUR RUN

GIVE AWAY 1 e- bike(raffle for charity) RUN BY Market team and dun Laoughire

supplier WHEN June 2016

The promotions team will run a scavenger hunt will take place with 10 individuals who

entered into a raffle for online before the race. First to find the bike wins. Jopo has run a

scavenger hunt as a promotion before with great success.

DUBLIN PRIDE GIVE AWAY 2 bikes(raffle for charity) RUN BY Promotions Team WHEN June- 2016

Jopo colourful and cheerful demeanour and slogan, go hand in hand with the great cause of

Dublin Pride Week. Ebikes of all colours will be trotted around for the week, with a raffle of

two bikes on the biggest parade day. Tickets will cost 2 euro each and all proceeds will go to

Yes, Equality charity.

ELECTRIC PICNIC

GIVE AWAY 2 bikes RUN BY Promotion team WHEN September-2016

The promotions team will run two separate events. The first is a raffle. They will have to take

a picture of themselves with one of the bikes the team has at the festival and post it to a social

media outlet on the Jopo’s Electric Picnic Facebook, Twitter or Instagram page. One Bike

will be given away. The second day a scavenger hunt will take place with 10 individuals who

posted pictures for the raffle for the day before but did not win. First to find the bike wins.