International Marketing of E-Bike Brands †MyAssignmenthelp.com

Question: Discuss about the International Marketing of E-Bike Brands. Answer: Introduction This report compares and contrasts two E-Bikes brands based on their effectivemarketing segmentation and product positioning techniques in the international market. International market is the process of doing business across the national borders by the companies. In the global marketing, it is crucial to understand how the products are perceived by the customers in the new market (Laker, 2017). For the discussion, Australian E-Bike brand Dillenger and German E-Bike brand Bosch is selected. Both the companies have expanded their businesses in the overseas market. Key objective of the report is to develop the segmentation and positioning responses based on the marketing fit design process for these two brands of E-Bikes. The comparison in the report will be done based on market opportunity analysis for both the companies in the different countries including market segmentation and market diversification. Along with this, positioning and market fit requirements i.e. target customers, m arketing mix and consumption and buying patterns will be considered. At last, segmentation requirements will also be considered for both the companies. The brief description of both e-bike brands is as follows: Dillenger Pty Ltd Dillenger Pty Ltd started its operations in 2007 as a company in Queensland, Australia. With the quickly developed production models, company has sustainable growth in the Australian market. New technologies in the electric bikes and intelligent motor controllers are the reason of huge improvements in the quality and reliability of electric bikes. Due to the reduction in the cost of electric bike components, the sales of e-bikes have enhanced. The market of Dillenger has improved in the last 3 years and its products are now sold in all over the world (Dillenger Pty Ltd, 2017). Bosch E-Bikes Systems Famous e-bike company Bosch started its operations in 1951 in Germany and now it has a strong presence in the market. In current time, company has over 70 leading bike brands in all over the world. Company provides high quality, powerful and reliability drive units along with durable batteries that make e-bike successful. Bosch E-Bikes Systems is working on the future of mobility and economic and ecologic sustainability. The company has around 10,108 associates and it has strong service network to ensure widespread availability of both products as well as services (Bosch, 2018). Comparison Australian E-Bike brand Dillenger is famous company among the Australian consumers and the company has expanded the business in the UK market. On the other hand, German E-Bike brand Bosch has expanded its business in the US market. There are some factors that can be analyzed while comparing these two E-Bike brands. Market opportunity analysis Dillenger Australian E-Bike brand Dillenger has expanded its business in the UK market. There are various market opportunities in the country for the growth and development of E-Bike business. The UK Electronic bike market is one of the developing markets for the overseas companies. The total e-bike market in UK is estimated to be worth 1.5 billion. The market is growing by around 5% per year that is beneficial for the company Dillenger. Along with this, the sale of new e-bikes is estimated to be 800 million and this data reveals that the Dillenger will have hike in the sales in UK market. Dillenger has opportunities to grow in the market as the UK bike market is highly fragmented (Peace, 2017). There are various market growth opportunities in the e-bike market for the overseas companies: Despite of increase in the popularity of sports vehicles, large number of e-bikes are sold in the country, The wellbeing and health benefits are associated with the electronic bikes, The government infrastructure investment is high in various cities of UK, Rapidly growing electric bike segment in the UK market that makes cycling more easy to both older generation as well as commuter, and Existing consumers are spending more amounts on using electronic bikes (Oortwijn, 2016) Bosch e-bike systems On the other hand, German E-Bike brand Bosch has expanded the business in US market due to some market and business opportunities available in the market. The sale of e-bikes is expected to be doubled in US market. By the expansion in the US market, Bosch has become leader in the e-bike market. Bosch e-bike systems provide high quality drive system in the e-bikes (MacArthur, Dill Person, 2013). In the US market, the electric bikes are growing in popularity. The continuous trend is enhancing number of electric bikes models and styles. By the growing trend, Bosch e-bike system is able to set success in the growing market. There are around 200 million electric bikes ridden today and it is predicted that industry will grow to 2 billion by 2050 (Willem, 2017). Market segmentation Market Segmentation Dillenger Bosch Demographical, geographical, and psycho-graphical segmentation, Middle income families, and higher income groups segmentation Psychographic, Demographic and geographic segmentation, Business to business segmentation, Business to consumer segmentation Market diversification In the UK market, Dillenger is able to maintain its strong position by diversifying its product and services. For the Dillenger diversification is not as risky as it has launched variety of e-bikes in the market with its own brand. The products of Dillenger have created the sense of demand in the UK market o n the launch of new products (Langkos, 2014). In order to position itself in the US market, Bosch e-bike systems have adopted market differentiation strategy. Bosch in the UK market diversifies into new products and markets including the global group and trailer sector. Along with this, Bosch has adopted niche strategy, mission marketing strategy, diversified its marketing mix and provides cheap products as compared to its rivals. The company has new and diversified range of e-bikes. Positioning and market fit requirements Target customers In UK market, target market selected by Dillenger is based on the demographical, geographical, and psycho-graphical segmentation. The target customers are rural households deprived of basic electricity, middle income families, and higher income groups who are conscious for the fitness and contributor to green energy. On the other hand, target customers by Bosch in UK market are based on various factors including income, age, region, attitude, behavior and consumption patterns etc. Bosch basically uses a mix of psychographic, demographic, and geographic segmentation strategies. Company uses differentiating targeting strategy and targets the customers from automobile companies from the diversified strategies, professionals and executives and upper-class social group (Ferrell Hartline, 2011). Marketing mix Marketing Mix Dillenger Bosch Product Electric cars, electric bikes, spares like electric bike kit spares, accessories i.e. safety, storage and tools Mobility, industry and trade services, software solutions and various vehicles Price Competitive pricing strategy in UK market, special financing options (Keegan, 2002). Different pricing strategy of different product category, competitive pricing strategy is followed Place Various stores and logistics centers i.e. UK warehouse, UK dispatch, spares inventory and returns centre Distribution form independent Bosch dealers and retailers in US, Stores and Bosch offices available in the country Promotion Personal selling, Advertising on various media i.e. television, newspaper and magazines, publicity by road show and free trails for the new customers and credit and finance schemes Direct approach- Direct interaction with regular trade channels, Media Branding- Local paper, Regional TV channels, automobile and trade magazines, Direct market promotion- Auto shows, Rally events, sponsor of local events (Fahy Jobber, 2012) Consumption and purchasing patterns The buying or purchasing behavior of the consumers for e-bikes in UK and US market are as follows: Buying patterns Dillenger (UK market) Bosch (US market) Satisfied with the mileage of electric bikes, Satisfied with the sales after services, Buy e-bikes due to its speed, Satisfied with the speed, power, battery life and appearance of e-bikes (Kazmi, 2012) Positive attitude towards e-bikes, Buy e-bikes to enhance cycling frequency, Use e-bikes to reduce travel time, Buy e-bikes to replace the cas Segmentation requirements Demographic variables In the demographic factors, Dillenger focuses on the age, income and occupation of the customers. In the income factor, company focuses on the high income level customers who are also contributing to the environmental sustainability. The key segmented group for the e-bikes are 18 years and above. All kinds of people are targeted i.e. business people, students, servants etc (Cateora, 2008). On the other hand, Company Bosch focuses on the young professionals and students for the sale of e-bikes. Students are targeted who are living far away from the college campus and using public transport. Company basically focuses on those students who do not live with their parents. Along with this, company is focusing on young professionals who travel daily for their work by the public transport. Lifestyle segmentation In the UK market, Dillenger targets the consumers based on the lifestyle segmentation. The company is targeting upper middle class people with stylish design and looks along with the affordable prices. Further, company also targets the corporate executives who prefer to travel by the public transports to reach their work station. Bosch has targeted family size in the market and in this segment, people of high class, and high income group are focused by the company. The e-bikes are helpful in the contribution for the sustainability of the environment. Conclusion From the above analysis, it is observed that both the companies are doing well in the global market. It is analyzed that companies have different marketing and positioning strategies while operating in the overseas market. The customers in UK and US market have different preferences and requirements and it is important for the companies to understand those requirements so that their requirements can be fulfilled by the products and services. Dillenger and Bosch, both the companies are market leader in terms of fulfilling market fit requirements for e-bikes. With the increased air pollution in the environment and scarcity of fuels electric bikes, there is the high demand of electric bikes among the customers and both e-bike brands are successful in meeting the requirements of the customers in different countries. References Bosch, (2018). Everything about the eBike. Retrieved on 3rd February 2018 from https://www.bosch-ebike.com/en/experience-ebike/experience-ebike/ Cateora, P.R. (2008). International Marketing (13th). NY: Tata McGraw-Hill Education. Dillenger Pty Ltd. (2017). Dillenger Electric Bikes. Retrieved on 3rd February 2018 from https://dillengerelectricbikes.com.au/about-dillenger/ Fahy, J. Jobber, D., (2012). Foundations of Marketing. (4th). Maidenhead: McCGrawHill Ferrell, O. Hartline, M., (2011). Marketing management strategies. New York: South-Western. Higher Education. Kazmi, S. Q., (2012). Consumer Perception and Buying Decisions: International Journal of Advancements in Research Technology. Volume 1(6) Keegan, (2002). Global Marketing Management. IND: Pearson Education India Laker, L. (2017). Rise of the ebike: how going electric could revolutionise your ride. Retrieved on 3rd February 2018 from https://www.theguardian.com/lifeandstyle/2017/sep/16/rise-of-the-ebike-how-going-electric-could-revolutionise-your-ride Langkos, S. (2014). Marketing Plan with product diversification strategy. Retrieved on 3rd February 2018 from https://www.researchgate.net/publication/265466588_Marketing_Plan_with_product_diversification_strategy_Case_study_of_Media_Strom_SA_Athenian_Bedmatress_Company MacArthur, J., Dill, J., Person, M., (2013). E-Bikes in the North America: Results from an online survey. Retrieved on 3rd February 2018 from https://docs.trb.org/prp/14-4885.pdf Oortwijn, J., (2016). Growth of UK E-Bike Market Estimated at 20%. Retrieved on 3rd February 2018 from https://www.bike-eu.com/sales-trends/nieuws/2016/11/growth-of-uk-e-bike-market-estimated-at-20-10128028 Peace, R., (2017). Brexit Looms Over UK Market Where E-Bikes Boom. Retrieved on 3rd February 2018 from https://www.bike-eu.com/sales-trends/nieuws/2017/7/brexit-looms-over-uk-market-where-e-bikes-boom-10130459 Willem, J. (2017). USA E-Bike Market Doubles in Units and Value. Retrieved on 3rd February 2018 from https://www.bike-eu.com/sales-trends/nieuws/2017/9/usa-e-bike-market-doubles-in-units-and-value-10131284