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- Marketing Managemen t

Marketing Strategy 2015

Team D8 Group Members:

David McCarthy

Madeleine Byrne

Alexander Daniel

Linh Tran Hien

Chang Zheng

Akash Singhal
Table of Contents


































1. Terms of Reference:
The objective of this project is to develop a marketing plan for electric bikes (E-Bikes), at
Donnybrook Bikes. This marketing plan endeavours to:
Strengthen Donnybrook Bikes brand value with respect to customer service and after
sales services.
Introduce E-Bikes to a traditional store.
Increase customer volumes and their awareness of the E-Bike.
Ultimately, increase sales volumes and increase profits.

2. Executive Summary:
Donnybrook Bikes was established in June 2014. The business is an owner-managed enterprise
which is operated by seasoned industry professionals, Andrew Persons and Ruairi Persons.
Between them, they possess over 15 years, experience in bicycle sales and repairs. The business
is one of south county Dublins leading bicycle specialists and is located in the prime upmarket
location of Donnybrook, Dublin 4. Donnybrook Bikes sells both new and second hand bicycles
in various shapes and sizes. Additionally, they offer a large selection of all-weather clothing,
safety accessories and spare parts and also provide a fantastic after sales service.

D8 marketing solutions have worked closely with the management/owners of Donnybrook

Bikes to create an in-depth marketing plan for the introduction of the Kenbay Swift E-Bike.
This marketing plan will be representative of the geographic location, Dun Laoghaire
Rathdown, and the age demographic of 45 64 year olds.

A comprehensive analysis of internal and external market factors was carried out in the form
of online surveys, street surveys, industry professional interviews and academic research
analysis. After analysing the brand, product and prospective area for growth, the overall
objectives of the marketing plan were set. These objectives include

1. Cultivating an awareness and understanding of E-Bikes.

2. Increasing sales revenue and increasing customer interactions online.

The planned campaign will be titled, Southside E-Bikes and will consist of three phases,
which will adhere to a strict budget of 12,000.

Phase 1 Traditional Media

Phase 2 Guerrilla Techniques
Phase 3 Online Campaign - Competition, Facebook Adverts & Google Adwords.

These three phases will employ different guerrilla-marketing techniques where applicable.
Guerrilla marketing is an advertising strategy which focuses on low-cost, unconventional,
marketing tactics that yield maximum results (Creative Guerrilla Marketing, 2015). We have
placed particular focus on this marketing technique, as Guerrilla marketings philosophy aligns
itself with the companys expansion vision. The soul and spirit of guerrilla marketing is
small businesses with big dreams but tiny budgets (Levison, 2007). Guerrilla marketing puts
particular emphasis on keeping in touch with previous customers, exploiting creative-
marketing avenues and taking advantage of the sharing power of others. We have meticulously
designed these marketing plans with reference to Levinsons sixteen secrets of marketing.
To summarise, these marketing guidelines pay particular attention to committing to a plan,
viewing marketing as a long-term investment with patience and consistency as integral

Subsequent to the completion of the marketing plan, a retrospective analysis of data will be
conducted to determine whether campaign objectives were met. The data will compare the
sales volume, social network interactions and site visits, both before and after the campaigns
lifecycle ends.

3. Business Background
Business Mission

Donnybrook Bikes aims to be at the forefront of Kenbay E-Bikes sales in south county
Dublin, with particular focus on the Dun Laoghaire Rathdown county council area.
Increase existing customer base and expand into new markets.
Increase Donnybrook Bikes online presence and reach.
Aim to further diversify their product range.

Company Mission Statement

Donnybrook Bikes is a bicycle shop that sells both new and high quality, second hand bicycles
in south county Dublin. We use our extensive industry knowledge and experience to offer high
quality customer service and superior after sales services. We strive to go above and beyond
our customers expectations.

Marketing Plan Objectives

This marketing campaign is titled Southside E-Bikes. The marketing strategies employed
have been meticulously designed to maximise exposure and work within both the budget and
scope of the business, to reach the following marketing objectives:

1. Introduction of the Kenbay Swift E-Bike to Donnybrook Bikes, with projected sales of
300+ units for summer 2015.
2. Increase online network traffic by 25% through mediums such as Facebook, Twitter
and Instagram.

4. External Market Audit

PEST Analysis
The PEST (Political, Economical, Socio-cultural and Technological) analysis is a business
measurement tool, created by Francis Aguilar, which examines the big picture factors of the
market. This methodology helps users identify potential obstacles and avoid riskier projects,
which are susceptible to threats outside of their control (Fahy and Jobber, 2012).

Political Issues Influence on Business

Current An E-Bike must not be able to travel This will not have an adverse
Legislation above 25 kilometres per hour. effect on sales, as our target
They cant be sold to persons under the market is not this specific age

age of 14. demographic.

Funding & Cycle to Work scheme provides These financial incentives will
Grants greatly assist in reaching our
funding to aid the purchase of
sales targets
conventional or E-Bikes.
No planned end of this scheme.

Environmental Perspective sales of E-Bikes

& Ecological All political parties are advocates of can only benefit from these
greener environment, reducing initiatives.
GHGs, improve health prospects and
reduce Healthcare costs.
The EU has allocated resources to
promote these values, build cycle lanes
and a national cycle policy framework.

Lobbying Irish Bike Association lobbies to This will promote positive

Groups improve to view of electric bikes. attitudes towards to the sale of
(Leba.ie, 2015) E-Bike and their use.

European E-Bike motors must not have a power The Kenbay Swift is
Legislation output which exceeds 250 watts. compliant with this legislation.

Economical Influence on Business

Economic Ireland has one of the fastest growing This will have positive impacts
Trends economies in Europe as of 2015. on sales as people will have
higher levels of disposal
income (Inman, 2015).

Seasonality E-Bike sales are seasonal, increasing Our campaign will exploit this
Issues from the warmer spring and summer and will operate between April
months. and August.

As above.
Specific Bike sales are on the rise; this can be
Industry attributed to the increase in costs of
Factors petrol, insurance and road tax.

Taxation E-Bikes are sold at the standard tax rate Donnybrook will comply with
in Ireland. the national standard tax rate.
Specific to

Social Cultural Influence on Business
Lifestyle Trends People in 2015 are more conscious of health trends and exercise. Bicycles
are now out selling cars.

Demographic Irelands largest age demographics are: 25 44yr olds & 45 64yr olds
As these demographics grow older, as does our target audience, aiding
future sales (CSO.ie, 2015).

Urban Centre Our research indicates further sustained growth is estimated in Dublin over
Growth the coming years (Williams, 2015).

Media Views Mainstream media in Ireland have embraced cycling and would be
advocates for its success (Irish Times, 2015).

Major Events & The recession, along with the successful Cycle to Work scheme, has seen
increased sales of bicycles in Ireland (Sticky Bottle, 2015).
Endurance sports have increased in popularity, with cycling to the fore, in
events like The Iron Man Challenge.
Mental health cycle against suicide (Cycleagainstsuicide.com, 2015).

Technology Influence on Business

Competing Similar, yet distinct products include, E-Cars and Segways, but these
Technology markets are unsaturated in Ireland at present and we believe, do not pose
any immediate threat to the E-Bike market.

Maturity of Still in the early phases of this products lifecycle, the technology is
Technology constantly improving in relation to features like extended battery life,
reachable speeds and additional functionality.

Replacement The closest replacement solutions would be other E-Bikes brands and
Solutions attachable motors systems.

Overall, the PEST analysis suggests that there would be no significant interference from any
outside, uncontrollable force, which would hinder the sale of electronic bikes for the coming
twelve-month period.

Political powers in Ireland have taken a positive stance towards cycling, indeed actively
promoting it with various policies and schemes. These policies include the cycle to work
scheme, building of cycle lanes and the national cycling road map.

The people of Ireland have had a turbulent number of years since the onset of the recession in
2007. Since then, the Irish people have had considerably less disposable income, yet the cost
of using automobiles continued to rise. However, this has led to bicycle sales growing to outsell
their four-wheel counterparts for the last number of years (Sticky Bottle, 2015).

As of March, 2015, Ireland has the fastest growing economy in Europe. Subsequently, an
increasing number of Irish people have more and more disposable income, no longer being
syphoned off to the extent it had been. We believe that this will lead to enhanced sales volumes
of the E-Bike, in the near future.

The sociocultural aspects, with respect to lifestyle trends, demographic change and urban centre
sprawl, are demonstrating continued change. This will add hugely to the marketing of our E-
Bike and future models, as the target audience will continue to grow, as people experiment
outside the traditional.
As stated in the technology section, competing electronic vehicles, such as electric cars and
Segways, havent gained much traction within the Irish commuter market to date. The EBike
technology has plenty of room for future improvement as the technology is most likely, still
someway from maturity.

The Market Size

The potential market size for the Kenbay Swift, comprises the total number of commuters
within the greater Dublin area. This number will continue to grow, owing to internal migration
patterns in Ireland (CSO.ie, 2015). The daytime working populous of Dublin City and
surrounding areas, according to the 2011 Central Statistics Office (CSO) figures was 469,987.
Data from this report also concluded that in Dublin, 39,803 people cycled to work, which is an
increase of 10% on the 2006 figures. Additionally, a further 21,374 students commute to
college or school on bicycles. However, after further analysis, these commutes only account
for 2% of trips in Ireland. This is considerably behind other European countries, such as The
Netherlands 27%, Denmarks 18% & Germanys 10% (Claudy and Peterson, 2014).

Policies and Social marketing programmes are critical in achieving changes in peoples chosen
mode of travel (Brog et al, 2009). The Irish government has begun tailoring some of its
national transportation policies, to encourage the rise of cycling among the population. One of
the more prominent policies is the Cycle to Work scheme. This offers employees, savings of
up to 1000 against the purchase of a bicycle and associated accessories, through their
employer (Citizeninformation.ie, 2015). As the Irish government continues to push these
policies in an effort to realise national targets, our potential market size will continue to grow.
The national target for commuting cyclers, is 10% of all trips by 2020 (National Cycling

The areas with the most recorded cyclists in Dublin are, the City Centre with 23,265 and the
Dun LaoghaireRathdown council area with 6,869 (Ginty, 2012). These areas account for over
75% of the commuter cyclists in Dublin. Analysing the 2011 and 2006 CS0 figures, we can
conclude that the highest growth rate in bicycle use has also been in these areas. Dublin City
Centre bicycle use has increased to 7.75% from 5.6% and the Dun Laoghaire Rathdown area
has also shown considerable growth, rising to 5.25% from 3.85%.
Those working in the City Centre, are significantly more likely to walk or cycle, or take public
transport to work (Commins & Nolan, 2011).

Customer Analysis Market Segmentation

The analysis of market size has concluded that the area with the most growth, with respect to
cycling in Dublin, is the City Centre. However, E-Bike users generally commute from further
afield than conventional cyclists. The average trip distance on an E-Bike is 9.8km, compared
to 6.3km on a conventional bicycle (Engelmoer, 2012). Therefore, we believe it logical to
select the Dun Laoghaire Rathdown area as our targeted customer base, as it has the
subsequent highest growth rate and better geographical suitability.

Our potential customers have a number of alternative choices in terms of travel. In the Dun
Laoghaire Rathdown area, commuters can avail of numerous methods of public transport
such as, Dublin Bus, The Dart and The Luas. These methods have their own distinct
advantages such as, their pick up/drop-off locations, price and speed of travel. Additionally,
commuters can choose to use their own vehicles, taxis, motorcycles and bicycles as the
appropriate infrastructures are in place (Dlrcoco.ie, 2015).

In order to obtain further information on our target segment, we carried out an online survey.
We conducted this survey utilizing surveymonkey.com. We distributed this survey via email
and Facebook. Additionally, we brought printed surveys to Grafton Street and approached
people at random. The survey questions can be seen in appendix 3 to this report. A total of 74
people completed this survey.
The participants fell into the following age demographics:
1 person aged under 18

62 people between the ages of 19 & 30
12 between the ages of 31 & 40
45% were Male
55% were Female

The most popular methods of transport to work were:

Car - 46.67 %
Bicycle - 24%
Walking - 14.47%.
Public Transport - 14.47%

The main reasons those surveyed did not cycle to work were:
Time Constraints - 26.56%
Unpredictable Weather - 25%
Dangerous, as result of traffic - 17.19%
Perspiration - 12.50%
Too far from work - 18.75%

The predominant suggested use of electric bikes, according to our participants, would be:
Travelling to Work - 29.17%
For Leisure - 25%
A Mixture of both 45.83%

For the selected participants, the most important factors in deciding on whether to purchase an
E-Bike were:
1. Price
2. Functionality
3. Reliability
4. Aesthetics.

The data collected gave us a valuable insight into the various demographics and the E-Bikes
predominate use and suitability. Upon closer analysis, the age demographic survey participants
was in the age demographic of 24 30 year olds. This is only our secondary targeted market
segment. It may be beneficial to repeat the survey and specifically target the 45 65 year old
age group. Due to time constraints, for more conclusive results, we have decided to carry out
industry professional interviews.

We interviewed Ruairi Parsons from Donnybrook Bikes. Ruairi is the assistant manager at
Donnybrooks Bikes and has gained over 15 years of experience, in Irelands bicycle industry.
Ruairi indicated early in the interview, that Donnybrook Bikes do not currently sell E-Bikes.

However, he suggested that during his previous employment in a comparative shop, on the
North Side of Dublin, he gained valuable experience into the electric bicycle market:
An Irish branded product, the Kenbay Swift E-Bike was the most popular seller
Predominantly purchased for commuting
The age demographic that most frequently purchased E-Bikes, were the 45 65year old age
group. (Ruairi stated, throughout his years in the cycling industry he has never has sold an
EBike to a person under 45)
The gender spread at purchase point is usually equal but a lot of female customers are
purchasing for their husbands and partners rather than for themselves.

After conducting an extensive customer analysis through the mediums of online surveys,
central statistics information, academic research and industry professional interviews, we have
concluded a target age demographic and geographic location for our ideal customers. The
segmentation we have chosen to aim for is the 45 65 year age group, in the area of Dun
Laoghaire Rathdown council catchments areas. Dun Laoghaire Rathdown has an overall
population of over 206,000, with over 49,014 of these people ranging from 45 64 (Cso.ie).
Therefore an accurate market size estimation for this campaign is 49,014 people.

Competition - South County Dublin Area.

The competitor analysis is a vital section of any marketing report. We have comprised a list of
competitors from our online research and from information obtained from Donnybrook Bikes
Owner, Ruairi Parson. During the interview, Ruairi stated the following shops are their largest
competitors, for normal push bicycles and accessories:
Think Bikes
Hollingsworth Bikes

In what will hopefully provide a competitive advantage for Donnybrook Bikes, they have
recently acquired the licensing rights to sell Kenbay products, to the South County Dublin area.
Further analysis of these competitors concludes that, Fitzcycles are potential competitors in the
E-Bikes market. They sell a number of different branded E-Bikes, such as Cube, KTM and
Hercules. However, their closest comparable product is priced considerably higher than the
Kenbay Swift E-Bike.
These competitors have various different strengths and weaknesses. All have interactive
websites, which offer interactive E-commerce. Upon visiting these sites, we believe none to be
as user-friendly as the site offered by Donnybrook Bikes.
All exploit social media as a marketing platform, some better than others. Ultimately, their
main weakness, and Donnybrook Bikes main advantage, is that none are able to offer the
Kenbay Swift E-Bike. The only E-Bike designed and repaired in Ireland. Consumers want
to buy Irish but are still looking for value for money (Euromonitor.com, 2015).

Fitzcycles.ie Old Church Hall, Stillorgan, County Dublin.

FitzCycles.ie is the next generation of Bike Shop, and although that sounds pretty airy fairy
its actually a very simple idea to offer Irish cyclists the brands, customer service and
shopping experience they deserve and at the best prices possible (Fitzcycles.ie, 2015).

Think Bike Lower Rathmines Road, Rathmines, Dublin 6

Think Bike is designed to promote cycling as an exciting activity and also to make commuting
by bike the most practical solution to Dublin Transport. Experienced in the biking trade as we
are now in our 15th year of operation. Think bike is run by a young team of passionate from
many different areas of cycling (Thinkbike.ie, 2015). Further competitor information in
appendix 2.

Hollingsworth Bikes - 1 Drummartin Road, Kilmacud Lower, Stillorgan, Dublin 14

Hollingsworth Bikes is now one of the biggest cycle agents in Ireland with the opening of our
second shop in Kilmacud, Dublin South during the 1990s. The business continues to be
operated and managed directly by the Hollingsworth family with Kilmacud managed by Joe
whilst Maeve and Joe Jnr run the original business that is still to be found in Templeogue
Village, Dublin South (Mycycle.ie, 2015).

5. Internal Marketing Audit:

Operating expenses

Since its opening 9 months ago, Donnybrook Bikes have successfully managed their operating
expenses. Similar to their competitors, the most substantial expense that the shop incurs is the
cost of inventory, payroll, rent and sundry. According to Ruairi, the owner of Donnybrook
Bikes, inventory is their primary cost, a figure he did not disclose with us.
Payroll roughly accounts for between 18% and 22% of the monthly sales revenue. Secondly
fixed monthly Occupancy expense, generally accounts for between 7 and 8% of Sales Revenue.
Overall financially the business is trading well but due to the business early lifecycle is
impossible to do a more in-depth market audit on their operating expenses.

Analysis of Current Marketing Methods:

As Donnybrook Bikes is a relatively new venture, they are continuing to expand their customer
base and are attempting to penetrate additional geographical areas. Up till now they have used
basic advertisements and promotional methods. Some previous examples include: The formal
marketing structure utilized is very basic at present, hence the employment of D8 consultants.

Basic functional website

Non targeted Facebook campaigns to gain initial awareness
Advertising in south side people paper
Word of mouth

6. SWOT Analysis
Despite the fact that Donnybrook Bikes is still in its infancy as a business venture, we believe
the following, to be to the current status of the fledgling company:

Renowned for providing reasonably priced products
Owners expertise, over 15 years industry experience
Great location, situated in an affluent area and on a busy commuter route
Varied range of products, including extensive array of cycling accessories
Superior after sales service
Limited number of current distribution channels
Superior after sales service can impact on selling activities, due to staffing resources
Limited funding available for expansion, owing to this being a relatively new venture
Competing against more established competitors, whose costs may have dissipated over
time, compared to that of this new company

Cycle to work scheme
Environmental protection, less CO2 emissions
Gap in the market
An improving Irish economy, more investment
Higher price of petrol
Large market in close proximity, approximately 200,00 people
Increased awareness of health & fitness
Limitation in current Irish and European legislation
Changeable Irish Climate
Poor condition of Irish road network Lack of cycle lanes
Cost of electricity!

7. Marketing Objectives
Strategic Thrust
Our strategic thrust will define which products we will choose to sell, and into which market
we will choose to sell. In light of this, our product is the Kenbay Swift E-Bike and our
strategically selected target market segment will be commuters in the South County Dublin,
specifically the Dun-Laoghaire/Rathdown area. Our marketing strategy will require new
market penetration. This involves bringing the exciting, new Kenbay Swift E-Bike, into the
Electric Bike market.

Strategic Objectives
An objective is a measurable step a business takes in realising a strategy. Realisation of our
strategy will involve successful market penetration. We will attempt to forge significant early
sales, so as to secure significant market share of this emerging market. To achieve this, we need
to set realistic goals. These objectives are as follows:
Strengthen Donnybrook Bikes brand value with respect to customer service and after
sales services.
Introduce E-Bikes to a traditional store.
Increase customer volumes and their awareness of the E-Bike.
Ultimately, increase sales volumes and increase profits.

When we succeed in securing a healthy market share early on, we hope to become synonymous
in the greater Dublin area, for the sales of E-Bikes.
As previously mentioned, we will initially focus our marketing campaign on the 45 65 year
old residents of the Dun Laoghaire Rathdown area. A catchment area of over 200,000 houses
(CSO.ie). We expect to achieve similar initial sales to that of our European counterparts, who

have recorded sales of E-Bikes to 0.15% of homes, during their first 18 weeks of sales (Bike-
eu.com, 2014). This would equate to sales volumes of 300 E-Bikes, generating 374,700 in
sales revenue. We believe that with our aggressive strategic marketing plan and with a truly
outstanding product, we will see sustained growth in E-Bike sales.

8. Core Strategy
Target Market(s)
Our target customers are south Co. Dublin based commuters. We believe the most appropriate
age range to target, are those between the ages of 45 and 65 years old. The geographic location
we will target, comprises the affluent catchment area of Dun Laoghaire Rathdown. Owing to
the relative cost of the E-Bike compared to conventional transport, like cycling, we believe this
particular age demographic, in this particular area, to be the optimum selection in generating
initial sales.
We will also target a sub segment of potential customers, made up of people aged 25-34 years
old. We envisage that this group will choose to buy the product more often as a gift for their
parents, than for themselves.

Competitive Targets
There are three established competitors in the South County Dublin area. These include
Fitzcycles, Hollingsworth Bikes and Think Bike. While these competitors are established, due
to their distance from Donnybrook, we do not envisage any significant threat to Donnybrook
Bikes E-Bike sales.

Competitive Advantage
According to Grant (2013), Competitive advantage is the advantage a business has over its
competitors. The company may develop some aspect of superiority over competitors, by
providing either better value for a product or service at a lower price, or through a higher cost
structure for a product or service that adds greater value to the customer through differentiation.
Donnybrook Bikes do both. They hold a differential advantage by providing a product whose
competitors pale in comparison, in terms of quality, design, value and functionality. They also
hold a comparative advantage, as they have the ability to sell the E-bike at a lower cost than its
We believe that by adopting a dual competitive advantage approach, Donnybrook Bikes will
gain an edge over its rivals and will have the sustained ability to generate more customers and
ultimately add greater value to the business as a whole.

9. Marketing Mix
In consultation with the owner and through extensive market research, we have chosen the
Kenbay Swift E-Bike to be the first of its kind to retail at Donnybrook Bikes.
We believe that this particular product has a number of unique selling points which distinguish
Kenbay from other competitors in the market. These include;
1. Appearance
2. Functionality
3. Intangible/augmented components
4. Ability to meet the targeted customers expectations & requirements

The appearance and functionality of the Kenbay Swift E-Bike is really like no other in the
market at present. We believe that this product will attract and satisfy the needs of our target
audience. To begin with, this E-Bike is aesthetically pleasing. It has a step through alloy
frame, making it unisex and easily scalable. Through our research, we have found that our more
mature customers, 45yrs plus, prefer a bike that is easily mounted, as flexibility is generally
The Kenbay also holds front suspension forks, three assistance levels, a handlebar mounted
charge indicator, and a throttle that is very user friendly, with a twist and go functionality,
ensuring safe and comfortable travel.
Electrically, the bikes battery has a range of up to 70km. The bike has a maximum assisted
speed of 25kmph, generated from a 250w, high torque, rear hub, brushless motor, all of which
is contained within the bikes 25Kg structure.

At its core, the E-Bike is an excellent form of transportation. It will efficiently and effectively
transport our target market in the way they want and need.

The Kenbay Swift has many add on features, both tangible and intangible. The augmented
aspect of this E-Bike embraces a bundle of benefits. For example, if he/she wishes, mudguards,
a light, a bell and a saddle protector can be added, free of charge, features not offered by its

Aftersales services, including

a competitive guarantee, servicing
and customer relationship management,
are intangible assets, which Donnybrook
Bikes have been renowned for, since
opening in 2014. They have developed a
loyal customer base and through their
brand and this developed goodwill, we
feel they can catapult their sales of this
product and ultimately drive profits.

The Kenbay Swift E-Bike will be an addition to the existing product line and at least initially,
will be the only electric bike the shop will be retailing. To spark interest and to encourage
perspective buyers, the E-Bike will come with a free 6 month aftersales service and a further 6
months with 50% off any repairs, maintenance or servicing. All mechanical issues will be fixed
on site and any electrical issues will be fixed by the design team, at their headquarters in
Tallaght, Dublin.

According to The Economic Times (2015), Price is the value that is put to a product or service
and is the result of a complex set of calculations, research and understanding and risk taking
Of the perceived marketing mix, we believe pricing to be one of the most important elements.
Setting a price can be difficult, as it must accurately reflect the supply and demand relationship
of the product and its customers (Marketing.Net: Accessed Mar. 2015).
Prior to setting the products price, a pricing strategy must first be decided upon. When
choosing a pricing strategy however, important factors first need to be considered, ensuring it
best fits with the goals of the business. These factors include:
market conditions
input and output costs
company objectives
market segmentation and customers behaviours around willingness to pay
Having previously analysed many of these factors and gained a deep understanding and
awareness of our competition, the market and what the business is about, we feel the pricing
strategy that best suits Donnybrook Bikes is the Cost Price Strategy. This strategy takes into
account the costs involved in production and distribution. Based on these, the retailer can both
cover costs and mark up the product to include the desired level of profit. This strategy focuses
on the product and the returns that can be garnered from its sale.
Based on the Cost Price Strategy, the Kenbay Swift will retail at 1249. Costing
approximately 1000 to build and deliver each unit, this will deliver a mark-up per unit, of just
under 25%. Based on these figures, the company will achieve the following revenue flows:

Cost Volume Profit Analysis








! !
! 100 200 300 400 500

Costs Revenue Profit

We believe this price to be very competitive within the electric bike market, when compared
to the aforementioned, top three competitors in south county Dublin.

1. Fitzcycles.ie
2. Hollingsworth Bikes
3. Think Bike

The Kenbay Swift E-Bike will retail at a considerably lower margin than the electric bikes
stocked by our competitors. For example the cheapest electric bike which Fitzcycles stock, is
the 2015 // Cube / Access WLS Pro Hybrid, priced at 1,999. This product possesses only a
fraction of the Kenbay Swifts functionality and is not as aesthetically pleasing.

Through analysis of our survey and questionnaires, we have found that when asked to grade
price, functionality and aesthetics, in terms of what was the biggest factor influencing the
purchasing decision, 90% chose price.

When marketer Jerome McCarthy put forward the four Ps categorisation in 1960, place was
considered the point in which the consumer could gain easy access to a product or service.
Getting the right product, to the right place, at the right time, involves planning, organisation
and most of all, an efficient distribution method. The distribution of our product, the Kenbay
Swift will involve two different methods; Retail and Online.

Primarily, we will focus our distribution efforts through the established retail outlet, based in
Donnybrook, South Co. Dublin. Research has shown that our core target market, 45-64 year
olds, prefer to have a tangible, face to face, in shop experience. Accordingly, we have
researched the demography of particular areas in Dublin, which we believe will generate most
sales. This has led us to the catchment area of Dun Laoghaire-Rathdown. The population for
this area from CSO figures, are estimated at about 206,000 (CSO .ie).
To ensure we do not constrict our customer base, we will also aggressively target additional
customers through our second distribution channel, our Online presence. We will look to build
a strong presence Online and envisage that this channel will capture the younger segment of
the market, who increasingly prefer to purchase through this platform.

Many benefits can be gained from providing this dual distribution channel for our product, for
example: the bike shop can aid in creating a stronger personal relationship with both current
and future customers. This face to face experience is something that the owners value and
regard as an integral part of the businesss vison.

By developing an online platform, we feel we can exploit a more affordable medium of
advertising. This platform will allow all of our products to reach a wider audience, and present
the possibility of sales being generated from further afield.

10. Marketing Strategies/ Promotion

Our following, carefully designed marketing strategies, will use a synergy of both economic
and informative approaches, to maximise our visibility to our potential customers. The
economic method will accentuate the benefits of E-Bikes in monetary terms. This will
rationalise the cost of the E-Bike, in comparison to associated costs incurred with annual car
and bus transportation.
The informative approach will examine behavioural choices and will highlight the positive
health attributes associated with cycling. These marketing strategies are designed to utilise both
the Push and Pull approaches to marketing techniques. Push marketing is a promotional
methodology whereby organisations take the physical products, to the customers. Pull
marketing, on the other hand, involves enticing potential customers to come to you (Fahy and
Jobber, 2012).

Method 1 Traditional Media Advertising.

1. Flyer distribution via the Dublin South Side People Paper.

Phase one of the promotions and implementation section involves utilising the traditional media
platforms of newspaper and Adshel spaces. Donnybrook Bikes management indicated in an
interview that they used newspapers adverts for previous push-bicycle promotions and found
South Side People to be the most effect newspaper publication to advertise with. In previous
campaigns, they used small, black and white ads in the lifestyle section of the publication.
However, we have designed a sleek and colourful, two-sided colour leaflet folded into a
convenient A6 size, which is attached below in Appendix 4. These flyers will be graphical and
will give information on the product, price, company and any upcoming interactive
promotional events. The leaflet will be distributed in the Dublin South Side Peoples (DSSP)
issue, circulated just before the May bank holiday weekend. The leaflet will be printed by
DSSP, inserted into their newspaper and then distributed via their network, to their 43,000
customers (Dublin people.ie, 2015).

2. Adshel Bus Stop Poster Campaign

In order to create maximum awareness of our product, we will also plan to advertise using
Adshel bus stop platforms for two weeks, from April 20 th May 4th. Adshel advertising has
a number of benefits; they are hugely effective in terms of their reach and frequency, as they
have 24hr visibility, with the added benefit of potentially turning public transport users, into

customers. The Adshel advertising method is expensive, but the cost per 1000 exposures should
validate this expenditure. QR Codes will be present on Adshel adverts, allowing users to
interact instantaneously with the companys social channels, product details and competition
information. We have meticulously researched geographic locations and have subsequently
picked where we feel we will have maximum exposure. We will deploy posters in 8 locations,
Killiney, Sandyford, Dundrum, Stillorgan, Blackrock, Dun Laoghaire, Donnybrook and

Method 2 Guerrilla Marketing Techniques.

1. E-Bikes in Herbert Park.

E-Bikes in Herbert Park is an event designed to provide customers with a hands-on
interaction with the product. Customers will be able to see, touch and experience the benefits
of E-Bikes, in the beautiful surroundings of Herbert Park in Donnybrook. The event costs will
be minimal. Donnybrook Bikes have little or no transportation costs, the use of the park is
freely available and the event advertising will be done via social networking and previous
customer email addresses. This will give the company a great opportunity to service existing
customers, entice new customers and demonstrate their new product. At the location in Herbert
Park, the company will have a promotional, stocked with a number of E-Bikes, banners,
brochures, flyers, mailing listings documentation, a Facebook check-in facility and business
cards. The initial event will be staged on the Sunday of the May bank holiday weekend and
will be repeated July 6th, utilising the same materials.

2. Product Placement Farmers Markets.

From May 1st, we have devised a twelve-week schedule for product placement, at popular
farmers markets in the South County Dublin Area. Our research indicates that Farmers markets
would provide a great location to interact with our targeted demographic, as the average age of
attendees is approximately 42 years old (Gumirakiza et al, 2014). We have cautiously selected
the following market locations, in order to achieve maximize exposure: Dun Laoghaire,
Dalkey, Dundrum, Ranelagh and Donnybrook. At the farmers markets, our display will consist
of two E-Bikes, a table with E-Bike leaflets, company brochures and a pull up display brochure.
On site, our stall will be located strategically, to ensure maximum visibility and offer ample
space for test rides. Stall placement fees have been researched and an estimate is included in
the attached budget. This phase of the marketing section is expected to reach people who may
as yet, have failed to view our alternative promotional efforts. It also gives customers a chance
to engage with our knowledgeable representatives.

3. Strategic Flyers!
10,000 printed colour flyers, at a cost of 399 have been ordered. These flyers will be placed
strategically in the following locations with the permission of the business and premises

All bicycle clubs in the in the Dun Laoghaire-Rathdown area.

Local Shops
Colleges (Referral)
Other Businesses

These flyers will be placed in these locations between the 29 th & 30th of April. We will also
partake in a flyer swop program. This will enable us to advertise via other local businesses
and in turn build inter business relationships.

4. Projection Mapping of Store front.

3D projection mapping is another guerrilla marketing technique we will utilise. 3D projection

mapping is a method of mapping three-dimensional points to a two-dimensional plane
(creativegorillamarketing.com, 2015). Given their strategic location and store front layout, we
believe that this will be highly effective for Donnybrook Bikes. During his interview, Mr.
Parsons indicated that the business have access to a powerful projector. He has highlighted his
advanced computer literacy and that he would be keenly interested in trialling the proposed
projection advertising.

This section of the campaign will involve the sequential decline, over a two week period, from
14 days to 0, the launch of the E-Bike. Intertwined will be graphical manipulations of the shop

front, which will finish with a graphical image of The Kenbay Swift and their logo, A little
bit of effort goes a long way. Lightscape.ie will design the projection mapping for an arranged
fee of 500. (Projection location is outlined in the red box in the photo below)

Method 3 - Online Section

1. The Competition - Facebook, twitter & Instagram.

In this section, we will focus on the development of a Facebook, Twitter and Instagram
competition. (One prize winner to be selected at random) Although our demographic is of a
greater vintage, we shall be targeting our Facebook adverts to an alternative demographic. The
sub segment of 25 34 year olds, is the largest grouping on Facebook in Ireland
(eightytwenty.ie, 2015). The objective is that these users will refer a parent, friend or colleague
to Donnybrook Bikes. The campaign will consist of people Liking, Sharing or
Retweeting our E-Bike promotional advertisement, depending on their choice of social
media platform. Upon completion, the contestant will be placed into a draw to win one of our
exciting Kenbay Swift E-Bikes. The competition will launch on April 16th, 14 days before
the start of our print media campaign. The winner of the competition will be announced two
weeks after the start of the print media campaign.

2. Paid Google Adwords and Facebook adverts.

Throughout the summer months, we have allocated a weekly budget of 100 to promote
Facebook posts and 70 a week for Google Adwords. The social networks competition will
be the first message to be promoted and will run as a paid ad from April 16th May 4th.

11. Media Timeline

For a marketing plan to be successful, one must be patient and view the investment as a long
term investment (Levison, 2007). With this in mind, we have carefully designed our
marketing strategy to align to an end to end timeline of 18 weeks, beginning April 16th and
culminating on August 31st. The marketing process is broken up into the following three

Phase 1 April 16th to May 1st.

Facebook, Instagram and Twitter competition.
Facebook paid ad campaign for competition.
Projection mapping of store front.
Flyer distribution to local business, clubs and shops.

Phase 2 April 20th to May 4th.

8 Adshell posters.
Southside People flyer distribution - April 30th.

Stall at Dun Laoghaire farmers Market Saturday Morning - May 1st.
Shop demonstration of E-Bike.
E-Bikes in Herbert Park Event.

Phase 3 May 5th - August 31st.

Weekly Paid Facebook Adverts.
Weekly Paid Google Adwords.
Monthly flyer location refill.
Second flyer distribution via Southside people July 4th.
Second E-Bikes in Herbert Park Event July 6th.
Attendance at a different farmers market every week with stall, samples, and flyers.

12. Marketing Metrics

In the marketing metrics section of this report, various parameters will be measured
quantitatively, in order to track the campaigns performance and effectiveness (Fahy and
Jobber, 2012). This analysis will take place after the campaign has completed and will
ultimately decide whether the campaigns objectives have been met.
Additionally, when the product is launched, interactions with customers will be analysed. We
aim to decipher where customers saw our advertisements. This will enable us to discover the
effectiveness and productivity of our various advertising mediums. We may then choose to
concentrate our efforts on the more successful platforms, to achieve maximum exposure.
Eliminating the weapons that werent pulling their weight and doubling those that did give us
the biggest bang for our buck (Levison, 2007).
To measure if objective one has been reached, the sales volumes data of E-Bikes will be
analysed. The second objective, the effectiveness of the marketing campaign, can be measured
using Facebook analytics. The company will gain an insight into their page views by users,
likes, comments and demographics of their fan base, by comparing analytical data from
before and after the campaign.

13. Financials
We have allocated the industry average of 4% of expected gross sales turnover, to our marketing
budget (Levinson, 2007). Donnybrook Bikes had gross sales of 300,000 for the fiscal year end
2014, allowing for an annual marketing budget of 12,000, in 2015. This financial information
was obtained during an interview with Owner, Ruairi Parsons. After our campaign, we predict
sales in our target area to account for approximately 0.15% of the population. This equates to
the sale of approximately 300 E-Bikes, generating 374,700 in gross sales revenue, with a net
profit of 74,700. This will provide a significant return on our marketing investment, detailed
below. The return on marketing investment formula is a quantitative measure, used to evaluate
whether or not, the marketing spend was efficient in translating capital into increased sales and
ultimately in increasing profits (Economywatch.com, 2015).
ROI = (Gain from Investment Cost of Investment)
Cost of Investment

ROI = (74,700 12,000)


ROI = 5.225 Times = 523% of Initial Investment

Initial Budget 12,000

1. South Side People Flyer printing and 3000

distribution Two delivery dates.
2. Display Banner 200

3. Adshel x 8 (375) 3000

4. A4 - Flyers (10,000) 399

5. Projection Mapping 500

6. Facebook & Google AdWords 2720

7. Graphic Design 250

8. Field Marketing Staff (Two staff x 1680

12 Days)

Total% 11,949%

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Appendix 1: Donnybrook Bikes Interview

Friday 27th February - Onsite Interview with Ruairi Parsons.

1). Do you currently stock E-bikes?
Not currently but we are interested in selling Kenbay E-Bikes, as at my previous job we used
to sell them and they sold quite well. This marketing plan came along just in time as we aim start
selling them this summer. Please send the document when its done.

2). What brands? What Models? Price Range?

Kenbay Electric Bikes are by far the best in my experience. Dublin Designed, made in
China but their headquarters are in Tallaght.

Kenbay Swift 1249

Kenbay Wilde 1249
Kenbay Beag 1019

3) What age demographic do the customers fit into?

45 65, we havent sold an E-bike to anyone under 45.

5) What do these customer use there E-bike prominently for?

Mainly for commuting to and from work.

6) Does the customer buy many complementary goods with their E Bike?
They usually buy a lock, helmet and some clothes. They dont need to purchase mudguards or
lights as the Kenbay bikes come with them.

7) What after market service do you offer?
We offer great aftermarket service all our bike customers. We fix the bikes for free for the
first six months and then after that the customer only pays 50% of the fee.

8) What do you think is helping the increase in sale of E-bikes in Ireland?

The everyday increasing cost of running cars with respect to petrol, tax and insurance.
People are somewhat more health conscious these days.
The traffic in Dublin is ridiculous, people dont want to sit in traffic for hours, and they
get to work much quicker in a lot of cases on a bike.
The Bike to work scheme is a huge help on sales, Id estimate that 70%+ sales of the
ebikes were sold under this scheme.

9) What gender predominantly buys the E-bikes?

Its actually 50/50, but what you do notice from the sales stats is that men also buy the ladies
model E- bike, the swift. As you can imagine older people dont want to raise their leg up
and over the higher frame usually associated with male bikes.
Also, a lot of women are actually purchasing the Bike for the husbands or partners, not
actually for themselves.

11) What are the main selling points of the Kenbay line?
Its cheaper than a lot of other brands out there.
The company is local and will fix any problems for free.
People like to support Irish.

12) Are E-Bike sales seasonal?

Yes, late spring and summer months usually, you will see a considerable increase in sales.

13) What makes Donnybrook Bikes different?

Well, we aim to provide exceptional service to our customers; this is evident in all the
aftermarket assistance we offer.
We have many years experience in bike maintenance and sales, between myself and
Andrew we have amassed 21 years of knowledge.
Prime location.

14) Do you offer customers the facility to buy bicycles online?

We advertise them online, but no one buys online. People usually will not spend that amount
of money without trying the product out first and speaking to customer service staff.

15) How do you currently market your E-bikes?

We run basic Facebook campaigns
Local print media D4 Living & Southside people.

16) Who would be your closest competitor?

Fitzcycles - Stillorgan.
Think bikes - Rathmines.
Mycycle aka Hollingworth Bikes.

Appendix 2: Survey Monkey Questions
1. Which one of the following age demographic to fit into?
2. Are you male or female?
3. What method of transport do you use to get to work?
4. What puts you off about cycling to work? Please indicate with 1-5, to which deters you
from cycling. (Traffic, Time, Weather, Perspiration, Other please specify)
5. If you had an E-Bike, what would you use it for predominantly?
6. Rank the most important purchasing factors for an E-Bike?
7. Would you prefer a foldable E-Bike or Non Foldable E-Bike?

Appendix 3: Comprehensive list of other competitors in south county

None of who, stock the Kenbay Product Line. Through extensive research of these companies,
it would seem that Donnybrook Bikes are the only retailers for this brand.

1. 2Wheels.ie Sandymount
2. Belfield Bike Shop
3. Bike Rack Cabinteely
4. Bike Shop Deansgrange
5. CI E-Bike
6. CCM Racing
7. Cycle Ops Ltd
8. Cycle Power
9. Cycle Superstore
10. Cycle Surgery
11. Daly (Joe) Cycles
12. Expert Cycles Rathfarnham
13. Delaney and Son Cycles
14. Dutch Bike Shop
15. Ferris Wheel Cycles
16. Fitzcycles.ie
17. Freemans Cycle Shop
18. Go Electric
19. Green Machines
20. Harrys Bike Shop Clonskeagh 21. Giant Dublin
22. Hollingsworth Bikes Kilmacud
23. Hollingsworth Cycles
Templeogue 24. IrishFit Ltd.
25. Kenbay Electric Bikes
26. Life In Motion
27. MacDonald Cycles Rathgar
28. Mad Elk Cycles
29. Mobile Bicycle Sales and Service
30. McQuaid Cycles Clondalkin
31. Mikes Bikes

32. OC Tuning
33. Rothar.ie Dun Laoghaire
34. Spokesman
35. Swim Cycle Run Ltd.
36. Stagg Cycles
37. Stillorgan Cycles Ltd
38. Wheelworx Fonthill
39. Wolfe Cycles
40. Velo Motion @ Base2Race

Appendix 4: D8 Designed Donnybrook Bikes Kenbay Flyer.