[TYPE THE COMPANY NAME]
Marketing Plan
M.M Ananda Devapriya
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Contents
1. Introduction..................................................................................................................2
2 . The background of the company....................................................................................2
3 Situational Analysis..........................................................................................................5
3.1 SWOT Analysis.........................................................................................................5
3.2PESTEL analysis............................................................................................................5
3.3 New product launch...................................................................................................7
.........................................................................................................................................8
4 Growth Strategy................................................................................................................8
4.1Market Penetration......................................................................................................9
4.2Product development..................................................................................................9
4.3Price differentiation..................................................................................................10
4.4Competitor Analysis.................................................................................................11
4.5 Market Segmentation...............................................................................................11
4.5.1 Positioning........................................................................................................12
4.5.2 Differentiation.................................................................................................12
4.4 value forecasts.............................................................................................................12
4.7Estimate of Variable Costs.......................................................................................13
5 Recommendation............................................................................................................13
6 Conclusion......................................................................................................................14
References..........................................................................................................................14
List of Figures
Figure 1-Bike volume increase ………………………………………………………….3
Figure 2-Samsons Product Portfolio …………………………………………………….4
Figure 3-e-bike configuration …………………………………………………………….5
Figure 4-Bicycles market share…………………………………………………………..6
Figure 5-Ansoff Matrix………………………………………………………………….. 7
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Figure 6-Penetration Strategy……………………………………………………………8
List of Tables
Table 1- Sales Coverage
…………………………………………………………………..8
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1. Introduction
DSI is a well-known product brand for Sri Lankan customers that operates in more than
20 countries. Samsons Bike Pvt Ltd is one of the major bike manufacturers industry in
the South Asian region established in 2007. The company supplies the bikes to the
European market including 20 countries and the Asian market. The company
manufactures a wide range of bikes to suit the armature rider to the highly professional
user of the bicycles. The company caters to the needs of the emerging market in Europe
amidst the covid outbreak as people are focused more and more on cleaner energy
applications and prone to a healthy way of life with physical exercises. There is an
unprecedented demand for bicycles all over the world. (EDB, 2021)
In developing the marketing plan of the Samsons bike company both qualitative and
quantitative methods were followed. This study reveals the reality of the bike
manufacturing business and the possibilities of grabbing the emerging markets in B2B
marketing opportunities in Europe and South Asia. In developing the marketing plan
theoretical framework such as SWOT analysis, marketing mix, consumer segmentation,
and competitor analysis was used.
Although the factory can make products what makes the sale of the product is the
coordination of all the activities of the business with a profit. In other words, it's the co-
coordinating force of the total system called business. Therefore the purpose of the
marketing plan is to direct the company towards some aspects of the business such as
developing a specific product or service to generate profit. (Voorn, 1992)
2 . The background of the company
Setting goals for the next five years
• First two years ( 2022/ 2024)
– 12,000 bikes/month ( 120,000 bikes/annum )
• Final three years ( 2025- 20128 )
– 20,000 bikes/month ( 200,000 bikes/annum)
Our main focus is to maintain 7% GP on export orders & 15% on local orders
The bike production shows an upward trend from the year 2012 onward achieving the
highest number in 2021. The next two years are crucial to the company with the
mounting number of new buyers and urgent supply of bikes to the European market.
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Figure 1- bike volume increase
Source (DSI, 2020)
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Figure 2- Samson's product portfolio
Source (DSI, 2020)
3 Situational Analysis
3.1 SWOT analysis
Strengths Weaknesses
The company has so far established a strong Establishing a presence in cloud-based
capital stock. The company could maintain a marketing.
capital base. Maintains aggressive and highly Lack of techno-savvy disposition.
focused marketing strategies, and specific Lack of training for recruits.
goals. Lack of problem-solving competencies in the
Strong backup from DSI Group top management
Lack of quick response to inquiries
Opportunities Threats
A new generation of consumers during the Major bike manufacturing Industries, Raleigh,
Covid outbreak appreciates the high-end design and Trek bikes have control of supplies and
of the e-bike. distribution to the European Market.
There is a growing community of e-bike Price fluctuations and increased freight charges
appreciators in Europe. in the post covid situation.
Government programs and initiatives to In the competitive market, new marketing
promote export due to foreign exchange crises campaigns are costly.
prevailing in the country. Higher bargaining power of suppliers and
GSP status customers
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3.2 PESTEL Analysis
Political
The recent political regime brought a positive conducive environment for export
industries through the implementation of new regulations, tax policies, and loan schemes.
The increasing political focus on the dollar crisis as an important aspect of the overall
economy government imposes pressure on export industries.
Economic
There is a growing willingness of consumers to spend on healthcare.
Companies are concerned with value-adding processes in health-promoting products as a
trend
Social
The general customer for bicycles is much more sophisticated and health-conscious
choosing health-promoting products over health-degrading products.
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The growing aging population turning to exercises with technologically improved
products
Popular social networks like Facebook have a higher high impact on business.
Technological
There is a great weight on energy-saving technology and clean energy.
Technology and problem-solving go hand in hand to find sustainable transportation
method
Ecological
Growing awareness of air pollution by using dirty energy.
Legal
The National Medicines Regulatory Authority has taken measures to regulate all types of
local and imported consumer products, from 2018 onward.
3.3 New product launch
e- Bike
The e-bike is a normal pushbike with extra components, an electric motor, a battery, a
sensor, and an electric display. The e-bikes are assisted with the pedals of a normal
bicycle. The motor assists the rider when the pedals are activated only. The rider gets the
extra boost to make the riding easier.
The e-bike has a variety of usage it gives the user a pedaling experience while assisting in
power. There are plus and minus buttons in which the assistance levels can be lowered or
increased. These assistance levels have been segmented as eco, tour, sport, and
turbo(Raleigh, 2020).
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Figure 3- E-bike configuration
Source (Jianmen, 2020)
The launch of the new product "Samson's e-Bike" is expected to bring an increase in
turnover by 20% within the first year at a market share of 30%. It is recommended to
enter into the European and South Asian bicycle market based on the feasibility study to
achieve the corporate objectives of Samson's Bike Pvt Ltd to become the market leader in
the industry capturing both the local and international brands by strengthening the overall
brand name of Samsons.
The consumption patterns of the people being changed during the Covid-19 outbreak
becoming more health-conscious, creating an increased demand for physical fitness needs
promoting various types of bicycles for transport. There is an increasing demand from
Europeans for health issue-solving products such as the product addressing the fitness
need to be led Samsons to invest and set up a designing unit in SL tend to gain growth in
the "wellness" market where health-conscious customers are seeking fitness-promoting
products.
Some strong competitors offer this kind of product to consumers other than the local
leading brand Lumala Cycles products which is also mainly catering to the fitness
criteria. Kotler et al.(1996) suggested competitors that cooperate goals must be based on
delivering the products or services to match the satisfaction level of the customers more
effectively than the competitors.
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Figure 4- Bicycle market share
Source (DSI, 2020)
4 Growth strategy
The Russian American Ansoff created the concept of the Ansoff marketing matrix. It
provides a framework for managers to devise growth strategies for the future. (Igor
Ansoff, 1957)
Figure 5- Ansoff matrix
Source (Dudovskiy, 2018)
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4.1Market Penetration
The company has the target to acquire and sell 200,000 bikes/annum through market
penetration & finding new markets. To penetrate the European and Indian markets the
company uses the following cycle through referrals cross-selling and conducting
exhibitions.
Figure 6- penetration strategy
4.2Product development
In the fourth quarter of 2020, net sales increased by 12 percent. Next to that unit volume
increased by 4 percent with 13 percent higher pricing Operation profit increased by 20
percent in all of Europe and South East Asia to $280 million. The increase in operating
profit is due to a growth in gross profit, which is due to a boom in selling, administrative,
and general quality improvements. However, the higher packaging cost and higher
manufacturing cost influenced the gross profit.
The potential markets that Samson's e-bike wants to establish require a different
marketing strategy. This results in higher marketing expenses because for every different
market, a different strategy is needed
In Europe, the e-bike will be launched as a premium bicycle. However, in the Sri Lankan
market, there's a low demand for high-priced e-bikes. Because e-bikes should adjust the
price of the other products to compete with these other brands.
It is suggested to compare the prices of the closest substitute the street bike in the market.
The price is an important penetration strategy as the consumers can be motivated to buy
the e-bike with its added advantages reasonable compared to the other bikes.
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In a B2B marketing strategy Samson's bikes supply bikes to department stores, retail
shops, and supermarket stores in Europe. Besides these, the brand has also dealt with
fitness associations and gymnasiums that help them promote their services. Some of the
chief suppliers of bikes are such organizations in Europe.
Following areas of Europe and South Asia will be covered
Country Number of Towns
Germany 56
Poland 45
Netherland 34
France 25
UK 56
Italy 28
India 21
Table 1- Sales Coverage
4.3Price differentiation
The quality difference between high-priced and low-priced products ensures that the
customers who can buy the goods for higher prices do not turn to cheaper goods(Phlips,
1981). At the moment the company is enjoying a cost advantage there is no need to go for
a lower-price strategy. Starting a price battle with the competitors could be devastating.
However, premium pricing can be applied if the product or service has an actual
advantage to the customer.
4.4Competitor Analysis
Competition among businesses appears in many different ways. Positioning the business
correctly, deciding the correct allocation of resources, and choosing the acceptance level
of performance are the main tasks for senior managers. Therefore skillful competitive
analysis is crucial for an enterprise. (Craig S. Fleisher, 2006)
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Status Area Potters Analysis
Low The threat of The bike manufacturing market in Sri Lanka has a few
New Entrants companies competing with each other. This means that
Samson can function at ease not as in a situation one mistake
could be vital since all the competitors were trying to gain their
market share.
High Threat of The performance of the substitute e-bike also has similar
substitute potential and the cost of making changes to match the
substitute quality is high.
low Bargaining In the European bicycle market, there is a great number of
Power of suppliers and they compete on prices, quality, innovation, and
Customer speed. The supplier's power is quite low regarding the new
product there are a lot of suppliers in this industry. Supplier
low Rivalry among Rivalry among existing firms in Sri Lanka is low. The bicycle
firms manufacturing market comprises a few numbers of brands. A
price war is not possible. The companies may compete on
brand image, innovation, and research and development. This
is to say that the rivalry among existing firms is not very high.
Table 2- competitor analysis
4.5 Market Segmentation
The market segmenting process of the company is not very simple. The whole process
has three basic steps. It includes segmentation, targeting, and positioning. It requires a
large amount of data to be analyzed. Managers need skills for interpretation and judgment
in analyzing big data. In the process, a lot of analysis needs to be done and many
decisions need to be made regarding Segmentation → Targeting → Positioning.
(Motherboug, 2010)
Type of segmentation Description
Geographical Segmentations Middle-class urban and rural population in Europe.
This segment is health-conscious preferred healthy lifestyle 3-75
years. Child population in both urban and rural.
Demographic Segmentation All age groups and all gender is included in demographic
segregation targeting the whole population. Young consumers
between the age of 18-34 are also segmented.
Psychographic segmentation They enjoy improving physical fitness. Physical well-being is of
utmost importance. Studies suggest that more than 55 % of the
consumers in the European market preferred health-promoting
products.
Behavioral segmentation Performance of the bike, health care, brand loyalty, and prices
are important when considering buying behavior of the
consumer. Middle-class and upper-middle-class customers are
less sensitive to prices therefore there is no risk of losing them.
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Table 4-Market Segmentation
4.5.1 Positioning
The company's new product Samson's e-bike Positioning Strategy must be distinguished
from its competitors to communicate with the customer, thereby developing the
positioning strategy.
4.5.2 Differentiation
Among the wide variety of similar products in the world bicycle market following
aspects of the products are focused to differentiate Samson’s e-bike from its competitors
o Concept of fitness
o Matching product for upper-middle-class social status
o Value for money
4.4 value forecasts
For the next two years, the company estimates $ 500000000 to be earned. This is an
estimate plus guessing. The company is already in the business for 20 years. Can
extrapolate from the nature of current sales of the bikes. However seasonal fluctuations in
sales may occur.
The company was selling $ 15,00000 of bikes per month to the European market when
the Covid break out reduced the sales by almost 30%. To create a more realistic profit for
the upcoming two years. It is estimated that an average of $ 10,00000 per month over
the next two years.
4.7Estimate of Variable Costs
The monthly cost for the goods or services sold should be estimated as part of the
realization of the company's sales estimate. These are called your variable expenses or
sometimes incremental expenses incurred by them. This is because they increase or
decrease depending on the volume of products or services produced or sold by the
company. The more bikes sold, the higher the shipping cost.
Other variable costs of the company include inventory, supplies, materials, and
packaging. In terms of services, labor costs should be counted as variable costs, which go
up or down depending on the number of sales the company makes. For example, if a
company were to hire independent contractors or temporary workers to cover the busy
peak days of orders, those labor costs would change. However, when a manager,
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bookkeeper, or salesperson, you will have to pay their salaries regardless of the sales, i.e.
their salaries will have to be listed under the fixed cost.
5 Recommendation
Advertising
There are two main opportunities for brand promotion concerning South Asian and
European markets. Physical fitness through the mode of transport to the office and
sightseeing. These concepts can be used to penetrate the European market in particular.
Regarding the company's advertising campaign, the TV commercials will be attractive to
customers because they are more competitive. On the other hand, the billboards displayed
on both sides of the road keep the consumer's eyes fixed on the image of the e-bike. The
use of online advertising in a new dimension is assured to gain an advantage over its
competitors.
Month Jan Feb Mar Apri May June July Aug Sep Oct Nov Dec
ch l
Above the line
TV
Radio
Newspaper
Web site
Billboards
Below the line
Prize promotion
Gifts
Competition
Point sale display
Sponsorships
Partnerships
Exhibitions
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6 Conclusion
Situational analysis for the new product together with the market analysis is done before
the launch and provided the decision-makers with many important facts to develop this
marketing plan. Analysis of the Standardization and Adaptation to newly emerged trends
in the market helps in raising the customer base and sales. In conclusion, this study shows
the reality of the bike manufacturing business and the possibilities of grabbing the
emerging markets in the context of the post-Covid situation and B2B marketing
opportunities in Europe and South Asian markets.
References
Craig S. Fleisher, B. E. B. (2006) Business and Competitive Analysis: Effective
Application of New and Classic ... FT Press.
DSI (2020) ‘DSI Bikes’, Company Profile, 1(12), p. 2.
Dudovskiy, J. (2018) ‘Xiaomi Ansoff Matrix’, Business resource methodology. Available
at: https://research-methodology.net/xiaomi-ansoff-matrix-2/.
EDB (2021) ‘Samsons Bike Pvt Ltd’, Sri Lanka Export Development Board. Available
at: https://www.srilankabusiness.com/.
Igor Ansoff (1957) ‘Strategies for diversification’, Harward Business Review, 35(5), pp.
113–124.
Jianmen (2020) ‘CQ Group International Company’, 1.
Motherboug, hawkings, and David (2010) Consumer Behavior. Building Marketing
Strategy. McGraw-Hill/Irwin.
Philips, L. (1981) The Economics of Price Discrimination. Cambridge University Press.
Raleigh (2020) ‘How does an electric bike work’, Raleigh News Letter. Available at:
https://www.raleigh.co.uk/gb/en/.
Voorn, R. J. (1992) The Marketing Plan Made Simple.
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