2. PROBLEM AREA AND PROBLEM FORMULATION
3. THE PRODUCT AND ITS HISTORY: PLC
4. PEST ANALYSIS
5. THE COMPETITORS: PORTER’S 5 FORCES, ANALYSIS OF THE COMPETITORS 6. THE CUSTOMER: STP
7. SWOT - STRENGHTS, WEEKNESSES, OPPORTUNITIES, THREATS
8. MARKETING OBJECTIVES: TOWS
9. COMPETITIVE STRATEGY: GENERIC STRATEGIES
11. DESIGN BRIEF
These days exercise, green energy and hip designs is a part of almost every ones life, granted some mean more for others and so on. The VeloVap is a product that tries to combine these three factors in a bike that comes close to no other. This report will evolve about how we are going to market the re-launch of the VeloVap.
VeloVap is a bike engine that helps pedaling being environment friendly due to the fact it uses electric energy instead of gasoline or any other harmful products. VeloVap is produced under the Velo Company and it is one of the premium products of the company. VeloVap is a product that was very popular in the 60’s, is a French product but with a distribution in several European countries, such as: France, Switzerland, Great Britain, Germany, Denmark, Sweden, Spain, Italy and other. We want to bring back VeloVap on the Danish Market, due to the fact that the country is bicycle friendly and the bike market keeps blooming each year. Because of its strong brand name the company has an advantage when it comes to penetrating a new market as they already have customer loyalty they gained in the past.
PROBLEM AREA AND PROBLEM FORMULATION
VeloVap is an old fashioned bike engine that used to sell during the 1960s. Bringing a product back from the past has always been a challenge for marketeers as they have to re-establish the image of the company and live up to the customers expectations. Whether the product sells or it goes low in profit margins depends on the marketing campaign responsible for adjusting the product to certain target audiences. As well as that the campaign is responsible for the company’s image and it handles the way customers see our product. But will a marketing campaign be enough to keep a product long on the market? This depends on the company’s ability to differentiate and innovate once they gain a fair amount of market share and competition starts to grow.
The VeloVap is going to be launched as an electrical bike, with a hip retro design giving it a wide appeal for people of several ages. With so many e-bike suppliers out there it is crucial that we find a way to successfully differentiate our bike among the hundreds of models that are on the market. PROBLEM STATEMENT
How should the VeloVap be positioned and advertised in order to make its comeback a feasible marketing decision?
THE PRODUCT AND ITS HISTORY: PLC
PLC OF VELOVAP IN THE PAST
During 1957 the VAP Company came up with an engine that helps people bike. At launch the product was facing certain limitations, which slowed down the sales volumes. People were required to have helmets and license to be able to use the engine thus limiting sales.
Due to economies of scale the production costs lowered. Based on that VeloVap saw potential in expanding their business internationally during 1959. It was a feasible decision but it also provided them with more competition and higher risk.The automatic clutch and the accelerator placed next to the handle were features that helped the VeloVap product differentiate from its competition. MATURITY STAGE
As the production facilities of VeloVap increased, they were able to produce more units at low cost. The company vastly reached 100 000 units produced and managed to obtain 35% of its sales in Britain and Switzerland. The success of their bike engine ensured them 5th place in amount of sells in France. Back then a direct competitor of VeloVap was Velo Solex. Their bike engine would...
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