Strategic Memo

Topics: Corporation, Strategy, Customer Pages: 1 (539 words) Published: September 29, 2014
To: Cyril Masson
From: XXXXXXXX
Date: February 26, 2014
Subject: CityBird's implementation strategy for the set up in Roma

Issue:
CityBird decided to increase its revenue from 734.000€ up to 1.000.000€ by expanding its activity in the European Capital City of Roma where the concept of "taxi-bikes" is unknown. 1. Partnerships Agreements: Hotel Chain or Taxi's companies

2. Publicity / Promotion campaigns
The risk is that the brand image could be considered as unsecure which will consequently harm the turnover of CityBird.

Alternatives:
CityBird is driven by the desire of becoming one of the most great, used and known company of "taxi-bikes" in Europe, thanks to its reputation of reliable and safe service. Its strong brand image is built on the quality of its provided service and on partnerships and promotion campaigns well-chosen. To do so, CityBird wants to enter the Italian market by implementing its activity in Roma. The bigger challenge for the company is to reach as many customers as possible while trying to establish a reliable brand image.

Promotion Campaign: CityBird thinks to elaborate a promotion campaign in Roma through brochures, flyers and magazines. This can greatly expand CityBird's notoriety in Roma and increase its number of customers. On a long-term strategy, it could impact the turnover of the company. However, this type of approach requires a large investment for a limited profitability. Moreover, publicity doesn't build a brand reputation.

Partnership with Taxi Company: CityBird is contemplating the opportunity to set up a partnership with a local taxi company. It would give the company an immediate access to a wide customer pool. However, it means a loss of independence for CityBird. The taxi companies will take their commissions, obliging CityBird to increase its prices. In addition, the only beneficiary in this deal is the taxi company which widens its activity at a minimum cost.

Partnership with a Hotel Chain:...
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