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Copy of Copy of S-Cargo

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Laura Rey

on 10 September 2013

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Transcript of Copy of Copy of S-Cargo

Marketing Environment and Analysis

This presentation will focus on the environmental analysis that identifies factors that can affect the success of the S-Cargo. These include:

Market Analysis - market, product, competitive and distribution situations
External Analysis - demographic, technological, economic, political/legal, socio-cultural, natural environmental trends
SWOT analysis - Issues facing the company and product

Newly innovated by Ofir Yadan , the S-Cargo is an attachment that can replace the front wheel of a standard bicycle, turning it into a multi-purpose tricycle that can be used for many different purposes. From carrying children, to bags, to boxes, the S-Cargo can be easily connected/disconnected to go from the front wheels of a tricycle, to a stroller or a trolley.

Presented by Green Wheels
Market Analysis:
Market Situation
SWOT Analysis
Environmentally friendly
Cheaper alternative to motor vehicles
Unique design
Greater Brisbane is predicted to be one of Australia's fastest growing areas

Inner City Brisbane is predicted to reach 1.33 million by 2031
Largest age bracket in Brisbane City is 25-44 y/o (31.8%)

By 2031, this bracket is predicted to remain the largest (28.7%)
Effects on the product
Increase in population:

Benefit - increase in population and traffic means people might look for alternative modes of transport over road vehicles
Effects on the product
The largest age range (25-44) represents the target age that the S-Cargo is being marketed to, meaning Brisbane is extremely suitable to introduce this product.
From the 2011 Census Data - Transport to work

43.6% of people living in Brisbane City traveled by foot
Only 26.6% of people traveled by car, as a driver or a passenger
Effects on the product
The amount of people travelling on foot may decide to try the S-Cargo as an alternative mode of transport as it can get them to work quicker and allows them to carry more with them
External Analysis:
Demographic trends
Technological Trends
Social media allows people to be connected across the world over various different platforms - more access & more customers
'Facebook Marketing' for effective social media marketing strategies

Disadvantages - Negative customer feedback is publicly displayed
2011 Census Data - Inner City Brisbane has highest median weekly personal income out of Statistical Areas in QLD ($858)

Reserve Bank of Australia's August Statement on Monetary Policy - Motor vehicle sales increased by 3.5%
Australians are not avoiding buying a new vehicle and the target area are earning a higher income than the surrounding areas - meaning the S-Cargo is being introduced into at an optimal time and in the optimal area
Australian Competition and Consumer Commission have standards for all bicycles in Australia regarding design, safety, labeling, and markings regarding the producer and product number.
The S-Cargo is not technically classified as a bicycle under the ACCC, and the attachment may mean extra standards must be included.
QLD government created the 'South East Queensland Principle Cycle Network Plan'.
Allocation of $556 million for cycle network planning and infrastructure
Cycling in Inner Brisbane is becoming much easier with new infrastructure, allowing more citizens to ride, meaning the S-Cargo is being introduced in a suitable place
Natural Environmental
Zero emissions vehicle
Favourable for people wishing to reduce carbon emissions & expenses associated with road vehicles
Target: All people in Brisbane from 30 y/o and above, focusing more on adults & housewives.

Expected to cost around 300 Euros

Market Definition
S-Cargo can be easily connected & disconnected to any bike
Multi-functions: Stroller, Trolley, Carrier
User-friendly & light
Product Situation
Market Trend
18% of residents (about 814,000 people) ride a bicycle for transport

60% of the population have access to bicycles

Frequent cycling - 75% ride to work and 54% ride to shopping
Competitive Situation
Eg. Triobike
3 main competitors to S-Cargo Bike:
Triobike, Yuba Bike and Toms Cargo Bike
Huge design
Cargo cannot be disconnected from the bike
Mostly serves only 1 function : items/children
Distribution Situation
Partnership with Bike Retail shops e.g Big Shop Bike, Gold Cross Cycles.
Retail Stores e.g Kmart, Target, Myer, Woolworths and Coles
Opening the official stores in later years.
Yuba Bike
Five Forces Of Competition
Competitive Advantage
Threats of New Entrants : Low barrier to entry

Determinants of Supplier Power: Require materials from different suppliers - moderate number of suppliers increases the bargaining power

Determinants of Buyer Power: Prices, quality, number of substitutes
Rivalry Among Competitors: Relatively low, as some are available only in some regions

Threat of Substitute Products: First platform that can be attached to bike - large potential customer base
Competitive Advantage
• High cost of product
• Little product and brand awareness

Increase of popularity and effectiveness of advertising through social media and the web
The South East Queensland Principle Cycle Network Plan and the development of new pathways
Toward Q2 Goal program
Increase in motor vehicle prices
Brisbane’s growing population
Potential business relationships
• Ageing population of Australia
• Rainy days
• Increasing weight related health issues among the population.

"Green Wheels is determined to become one of a unique and most convenient bicycle market in different countries."
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