Bho1171 Introduction To Marketing For Assessment Answers

1.    Analyse how the key elements of the marketing mix contribute to an organisation's marketing strategy;     
2.    Compare alternative theories of consumer behaviour and contrast how they influence marketing activities;     
3.    Determine the practical implications of core marketing theory including marketing empirical generalisations, the Double Jeopardy and Duplication of Purchase laws;     
4.    Investigate marketing problems in business situations using marketing research and marketing metrics, and effectively report results to a broader audience;     
5.    Formulate basic marketing strategies that can be implemented to address marketing problems

Answers:

Introduction 

Taga 2.0 is an innovative family bike that is offering simultaneously a great riding experience, unmatched functionality and contemporary design, all at an extremely affordable price. The bike is specially designed for addressing the modern family needs. Most of the family bikes that are found in the market today has been originally designed for carrying cargo not children. Seeing this Taga turned every stone in making the most safe, comfortable, practical and easy to ride family bike ever. Taking the conventional wooden-box cargo bikes to the next level – by the help of high pressure injection moulded plastics in place of wood – they have managed in reducing the costs of the bike, adding modularity and other different options for families on the go. Taga 2.0 is offering an e-bike version and is even available in different colours. The only challenge the product is facing is creating a positive experience for both children and their parents, as the product is already a part of the ecological mobility trend and has huge contributions in reducing air pollution and overcrowding of traffic (Tagabikes.com 2017).

The aim of this plan is to discuss the development of the product and a unique buying experience for the customers of the area, as the customers would be treated to something new, the opportunity of getting the experience of using something that would give them the option of spending time with their family, with no worries of carrying additional luggage or cargo. For effectively tailoring the marketing plan for Taga 2.0, the plan would be focusing on the couples with kids and the older people, who regularly consider day visits in nearby areas, checking off adventure from their bucket list. There is not much competition in this industry. However, the following marketing plan is creating a differentiated approach to the servicing of these couples.

Situation Analysis

External Environment Analysis

Demographic factors

The family bike and the whole bicycle industry market can be divided into two major sections: the older Baby Boomers and the younger and more trendy Generation X and Y population. The older population is possessed with an opportunity for spending time with their family and even exercising. With obesity and heart diseases plaguing the lives of people all across the world, every individual is looking for methods by which they can comfortably and easily stay active. These kinds of bikes easily offer people with the option of staying active that would not be dexterous in any way. Moreover, taking stroll in a bike around the local areas, with family members do not seem like any exercise at all. Moreover, people of the retired population are mostly on a fixed income and with the regular price hikes, bikes are good and cost-effective alternative. The Generation X and Y consumers are both an opportunity and a threat, the young consumers are mostly concerned with the environmental issues and the Green movement, making them fall easily into the Taga’s market. However, at times it becomes difficult to target them (Turpin 2013).

Economic factors

It is no secret that the economy of the world is getting better with each day. As gas costs are rising each day, people are turning to alternatives for transportation. With the increase in public transportation people are flocking in the direction of bike retailers. The local bike shop owners have reported a record number of sale. People are generating increased tune-up work for their old bikes or buying new ones. New bike sales are inching up with each passing day, with majority of the buyers choosing hybrid bike models or family bikes like Taga. These kinds of bikes are good for road trips and regular strolls. Even the local governments have started forwarding benefits for the cyclists that were already being provided to the motorists for years. There are reimbursements for the expenses that get incurred by the employees in buying a cycle or carrying out improvements, repairs and storage (Smethurst 2015).

Technological factors

It is very important inside the bicycle industry that there is some amount of ground-breaking research and development. Consumers are at all times looking for the most recent and the greatest of components that have lighter material inside them and is the next best and trendiest thing. The Japanese bicycle industry is the only industry that can pose any threat, with the help of their innovative cutting-edge discoveries. It was in Japan itself that the world’s first device using the pedalling of the ride for automatically replenishing the air in the bicycle’s tires was discovered. Air Hub is a device that has been developed by Nakano Iron Works Co., who are a small bicycle parts maker based in Mihara-sho, Osaka. Magical Light is another device created by Aki Denki who are makers of small electronic equipment in Chofu, Tokyo. This special light is mounted on the front of the bicycle and gets operated with the help of a generator that is brought in direct contact with the rotating tires and turns a magnet with the generator for creating electric power. In short, the biker’s kinetic energy is generated from the peddling and powers the light. Taga however, is ready for taking the Japanese head on. The researchers at Taga have made use of their talent and knowledge, working towards developing of new things that can be introduced to the public for their benefit (Smith 2012). 

Legal and ethical factors

Taga is a market leader in the family bike industry, in both legal and regulatory standards, also a model for sound ethical operations. The local legislative committees lead regular presentations that outlines the immediate influence of new laws. Safety Acts enforces standards that asks for manufacturers for supplying all the bikes and helmets with generic assessment certification that shows confirmation with standards. However, for non-compliance stiffer penalties are implemented, with high civil penalties and criminal penalties, punishable with prison statement too. Taga is also partnered with local agencies and organisations for dedicating their efforts to the development and construction of family bike infrastructure in all cities. These organisations even work with city planners to educate the locals on how to build a bike friendly city. More and more investments are getting subsidised for assisting with these efforts (Dauncey 2017). 

SWOT Analysis

Define the Customer/Target market  

The profile of Taga bikes consumers contains the following geographic, demographic, and psychographic and behaviour factors:

Geographic: The people of the local areas would be targeted first, especially those who are staying there for a long time.

Demographic: The general target market is male and female, from the age of 6 to 65, even that is segmented into smaller and more identifiable groups –

• Families having children
• Avid travellers, old people and health enthusiasts.

Psychographic:

• Priority given to health and fitness
• Enjoying travelling, staying outdoors and physically active

Behaviours:

• Regular shopping at travelling stores
• Enjoying reading about travelling
• Loving to spend time with family
• Loving working out (Pride 2013)   

Marketing Objectives 

The major objectives of Taga is to keep on providing the best quality in both their products and services, even in their sales. Thy have an objective of maintaining a financially healthy and strong business and at the same time validating the advocacy and trust of the people around who are in support of their business purchases. The most important goals for Taga is achieving regularly monthly and yearly sales that is equal to or better than the previous year. They are constantly aiming to better their sales of the bikes and the accessories. For that they have focused their marketing on the influx of families looking to regularly go out for them to maintain the current steady growth in their sales and service revenue. They need to gain information regarding their customers to convey the product or service message across. Developing a strong brand name recognition is also important, along with brand loyalty.

Marketing Mix Strategy

Pricing

Taga is famous for the production of quality family bikes that are tailored to customer’s needs. As an organisation, Taga looks in the direction of their customers for product features. Loyal Taga bikers have expectations no less but the best from this famous brand. Prices of Taga bikes are different across the board. Price variation is based on several options that a customer can choose from. For instance, a regular biker might be able to spend $400 on a simple bike for working out, but an experienced biker or a professional rider would be looking for something lightweight, with the latest and best components might be open to spending more. Taga is not into controlling consumer prices, they leave that to their most trusted dealers (Scott 2015).

The budget for Taga’s pricing strategy is as follows:

Placing/distribution

Distribution of Taga bikes are considered as exclusive. A customer does not get the option of walking into any retail store or online sites and expect buying a Taga. Taga is only into selling via certified bike dealers who are most of the time owners of independent bike shops. This is one way that Taga has taken up for showing dedication to the biking industry. Taga bikes can be ordered or brought from certified distribution shops. If these shops do not have the model then orders are placed with Taga who then passes the order along to the certified distributing warehouses who would be filling the orders and then shipping the bike to the shop where that would get assembled and delivered to the customer (Archer et al. 2015).

The budget for Taga’s placing strategy is as follows:

Promotion

Taga is not relying heavily on the mainstream media for promoting their products. With a niche market, Taga makes use of some print media that is mixed with a healthy dose of PR. Print ads for Taga could be seen in targeted magazines. Lifestyle biking is their current focus. Taga is targeting the common public for engaging them in biking, an activity everyone can take part in. Taga asks their customers into pledging miles and keeping tracks of where they are riding their bikes to, making sure for Taga in understanding their biking customers (Ryan 2016).

The budget for Taga’s promotion strategy is as follows:

Product/services

Taga offers full service and care to their customers and has pledged into always looking out for the best interest of their customers. Industry standards have support for carbon fibre bikes as these are mostly lightweight, durable, expensive but functional. Taga customers when buying these family bikes are making a lifetime investment, both financially, physically and health wise. Crashing of the bike or any accident is difficult to tell because of the durable material used. It is difficult to detect any damage. Taga even offers their customers with complimentary bike checks. Certified bike engineers inspect the bikes for making sure there is no compromise made on the structure of the bike. This complementary service is available for all aspects of the Taga brand. If any bike gets damaged repairs are done without any cost to the customer. Helmets are there for guaranteed lifetime protection. One more facet of Taga’s services are their programs that are dedicated to the coordination of cycling vacations for a lifetime. These programs are the ultimate method of experiencing the best locations of the area or even outside that. Taga travellers get the option of exploring as much as they can, moreover they can do it with their family, at their own pace (Branco 2016).

The budget for Taga’s promotion strategy is as follows:

Taga 2.0 is an innovative family bike that is offering simultaneously a great riding experience, unmatched functionality and contemporary design, all at an extremely affordable price. The bike is specially designed for addressing the modern family needs. Most of the family bikes that are found in the market today has been originally designed for carrying cargo not children. This plan discussed the development of the product and a unique buying experience for the customers of the area, as the customers were treated to something new, the opportunity of getting the experience of using something that would give them the option of spending time with their family, with no worries of carrying additional luggage or cargo. For effectively tailoring the marketing plan for Taga 2.0, the plan focused on the couples with kids and the older people, who regularly consider day visits in nearby areas, checking off adventure from their bucket list. There is not much competition in this industry. However, the marketing plan has created a differentiated approach to the servicing of these couples.    

Recommendations

Taga has already done a lot by seeping inside the untapped markets with the help of their new products that they have developed for their new customers. Already known for catering to families, Taga has understood that continuing to cater this market alone would not be enough for the expansion of the organization at a pace that would be consistent with their growth goals.

For ensuring their future growth, Taga can branch out in mountain bikes cruisers, urban bikes, women specific designs, bike path bikes and kids. Taga can acquire solid market share with the help of several brand lines that can satisfy the needs of almost any type of consumers. 

Reference and bibliography 

Archer, K., Arodz, T., Breland, A., Crichlow, D. and Klug, T., 2015. Promotion, Education, and Marketing of an Expanded VCU Bike Share Program.

Babin, B.J. and Zikmund, W.G., 2015. Exploring marketing research. Cengage Learning.

Boone, L.E. and Kurtz, D.L., 2013. Contemporary marketing. Cengage learning.

Branco, R., 2016. Marketing plan for online aqctivity of Rota Vicentina boosting direct website sales (Doctoral dissertation).

Christopher, M., Payne, A. and Ballantyne, D., 2013. Relationship marketing. Taylor & Francis.

Dauncey, H., 2017. French Cycling: A social and cultural history. Liverpool University Press.

Denny, S., 2014, October. Put a Lid on It, a Statewide Bike Helmet Program, Reaching Many and Increasing Helmet Usage. In 2014 AAP National Conference and Exhibition. American Academy of Pediatrics.

Freeman, R. and Thomlinson, E., 2014. Mountain bike tourism and community development in British Columbia: Critical success factors for the future. Tourism review international, 18(1), pp.9-22.

Pride, W.M., 2013. Marketing 2014. Cengage Learning.

Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.

Salmon, P.M., Young, K.L. and Cornelissen, M., 2013. Compatible cognition amongst road users: The compatibility of driver, motorcyclist, and cyclist situation awareness. Safety science, 56, pp.6-17.

Scott, D.M., 2015. The new rules of marketing and PR: How to use social media, online video, mobile applications, blogs, news releases, and viral marketing to reach buyers directly. John Wiley & Sons.

Shank, M.D. and Lyberger, M.R., 2014. Sports marketing: A strategic perspective. Routledge.

Smethurst, P., 2015. The Bicycle-Towards a Global History. Springer.

Smith, A., 2012. Introduction to sport marketing. Routledge.

Strauss, J., 2016. E-marketing. Routledge.

Sullivan Mort, G., Weerawardena, J. and Liesch, P., 2012. Advancing entrepreneurial marketing: Evidence from born global firms. European Journal of Marketing, 46(3/4), pp.542-561.

Tagabikes.com. 2017. Taga - the original bike-stroller - official website. [online] Available at: https://www.tagabikes.com/ [Accessed 19 Oct. 2017].

Turpin, R.J., 2013. “Our Best Bet is the Boy”: A Cultural History of Bicycle Marketing and Consumption in the United States, 1880-1960.

Wunsch, M., Stibe, A., Millonig, A., Seer, S., Dai, C., Schechtner, K. and Chin, R.C., 2015, June. What makes you bike? Exploring persuasive strategies to encourage low-energy mobility. In International Conference on Persuasive Technology (pp. 53-64). Springer, Cham.