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The marketing environment and analysis

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veronica lai

on 24 May 2016

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Transcript of The marketing environment and analysis

Demographic Trend
- Demographic Trend
- Technological Trend
- Economic Trend
- Political/Legal Trend
- Socio-cultural Trend
- Natural Environment Trend
Technological trend
- Appearance of Mountain bike
Current situation
Different from the past generation
Driving Force behind

- Evolved designing for performance cycle
Current situation
Different from the past generation
Driving force behind

Economic Trend
Political/ legal trend
- “wear an Australian standards approved helmet”
- “wear appropriate footwear such as enclosed shoes”
- “recognize all signs and obey road safety rules”
Alice Ferguson
Cora Peng
Margaret Liu
Veronica Lai Chak Wing
External Analysis

there are 4 million people riding on bikes each week (near 1/4 Australian population),
yet number is decreasing.

National Cycling Participation Survey (2011)
Demographic Trend
In Queensland,
There are 814,000 people riding on bikes
(18% of Queensland population riding bikes),
number is increasing.

In Australia,
(Queensland Cycling Participation Survey, 2011)
Australia Interest Rate

(Trading economics, 2013)

Economic Trend
Domestic Economics Environment

(Reserve Bank of Australia, 2013, pp.26-30)

Brisbane City Council’s Website (2013)

External analysis
Market analysis
Swot analysis
Q&A session (last 5 mins)
Our company Logo
Social-Cultural Trend
Australian Culture:
- outdoor lifestyle
-> Advantageous for bicycle industry
Natural Environment Trend
“ Brisbane is in the centre of the South East Queensland air shed. This air shed is the air volume that is enclosed by the surrounding mountains and bay islands. ”

(City Council, 2013)
mountains can be a block for bike industries in Brisbane development in the long term, people may find that it is hard for them to use bikes as a daily transport due to climbing difficulties.
Customers are more inclined to choose riding cycles as an exercise instead of other indoor activities or as convenient transport to work
the end

The increasing bicycle users in Queensland
Influence on INNOBIKES:

-> more government support
-> more Queensland residents are encouraged to purchase bicycles
-> INNOBIKES will be a good choice for them.
Source Details:

Bike Europe (2012) states that the number of cyclists increased steadily in the past five years.

Bicycles have outsold motor vehicles for six consecutive years (see Figure 1).
Competitive Situation- Level of competition
Competitive Situation- Key Player

Competitive Situation- Type of Competition

Competitive Situation- INNOBIKES’s competitive advantage

Competitive Situation- INNOBIKES’s competitive advantage

Customer Needs
As for the customers of INNOBIKES, they prefer to get high quality products and service. INNOBIKES offers the cargo-bikes to customers who need to carry the heavy and large things, it is convenient for them to get door-to-door service.

On the other hand, customers prefer to find the INNOBIKES’s shop and maintenance location easily.

Key issue

APOLLO BIKES 2013, viewed 4 September 2013, <http://www.apollobikes.com/>

Australian Bicycle Council 2011, National Cycling Participation 2011 Survey, viewed 26 August 2013, <http://www.austroads.com.au/abc/national-cycling-participation-2011.>

Australian Bicycle Council 2011, Queensland Cycling Participation, Summary Sheet, 2011 National Cycling Participation Survey, viewed 26 August 2013, < http://www.austroads.com.au/abc/images/pdf/NCP2011_QLD.pdf>.

Australian Bicycle Council 2011, Queensland Cycling Participation Survey, viewed at 26 August 2013, <http://www.austroads.com.au/abc/images/pdf/NCP2011_QLD.pdf.>

Australian Bicycle Council 2011, Queensland cycling participation, viewed 24 August 2013, < http://www.austroads.com.au/abc/images/pdf/NCP2011_QLD.pdf>
Investopedia n.d., Industry Handbook: Porter’s 5 force analysis, viewed 31 August 2013, <http://www.investopedia.com/features/industryhandbook/porter.asp>

Australian Bureau of Statistics 2013, Australia Age Structure in 2012, Australian Demographic Statistics, viewed 26 August 2013, <http://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia>.

Australian Education International 2013, Monthly Summary of International Student Enrolment Data, Australian Government Australian Education International, viewed 26 August 2013, < https://www.aei.gov.au/research/International-Student-Data/Documents/Monthly%20summaries%20of%20international%20student%20enrolment%20data%202013/06_June_2013_MonthlySummary.pdf>.

Brisbane City Council 2013, Cycling Rules, Signs and Safety tips, viewed 26 August 2013, < http://www.brisbane.qld.gov.au/facilities-recreation/sports-and-leisure/cycling/cycling-rules-and-signs/index.htm>.

Brisbane City Council 2012, Footpath Dining Permit Guide, Brisbane City Council, Brisbane, viewed 26 August 2013, < http://www.brisbane.qld.gov.au/downloads/laws_permits/local_laws/Footpath_Dining_Permit_Guide.pdf>.

Brisbane City Council 2013, Natural Environment, viewed 26 August 2013, < <http://www.brisbane.qld.gov.au/environment-waste/natural-environment/>.

Bike Europe 2006, Bicycles outsell car in Australia, viewed 23 August 2013, < http://www.bike-eu.com/Home/General/2006/1/Bicycles-Outsell-Cars-in-Australia-BIK001822W/>

Bike Europe 2012, Cycling surges in Australia but business fared poorly, viewed 23 August 2013, <http://www.bike-eu.com/Sales-Trends/Market-Report/2012/4/Cycling-Surges-in-Australia-but-Business-Fared-Poorly-BIK005813W/>.

David Fiedler 2013, Why Bike? Top 5 Reasons to Ride, About.com Guide, viewed 26 August 2013, <bicycling.about.com/od/thebikelife/a/why_ride.htm>.

EVELO n.d., viewed 4 September 2013, <http://www.evelo.com/>

Giant 2013, Giant, viewed 31 August 2013, <http://www.giant-bicycles.com/en-au/>

London School of Economics 2011, Australian Cycling: an economic overview, The British Cycling Economic, Australian Bicycle Council.

Olmsted, L 2013, 2013 Bicycle Buyers Guide: New Trends & Technology, viewed 26 August 2013, < http://www.forbes.com/sites/larryolmsted/2013/05/23/2013-bicycle-buyers-guide-new-trends-technology/>.

Queensland Cycle Strategy 2012, Cycling in Queensland Today, viewed 26 August 2013, <http://www.tmr.qld.gov.au/~/media/Travelandtransport/Cycling/Strategy/QCS%202011%20to%202021/07Pagesfrom01440MIPparta4.pdf.>

Queensland Treasury and Trade 2013, Population Growth Highlights and Trends, Queensland Government Queensland Treasury and Trade, Queensland, viewed 26 August 2013, < http://www.oesr.qld.gov.au/products/publications/pop-growth-highlights-trends-qld/pop-growth-highlights-trends-qld-2013.pdf>.

Reserve Bank of Australia 2013, Statement on Monetary Policy, viewed 26 August 2013, < http://www.rba.gov.au/publications/smp/2013/aug/pdf/dom-eco-cond.pdf>.

Trading economics 2013, Australia Interest Rate, viewed 26 August 2013, < http://www.tradingeconomics.com/australia/interest-rate>.

Tourism Australia 2013, Australia’s Culture, viewed 26 August 2013, < http://www.australia.com/about/culture-history/culture.aspx>.

Zacharias, C 2012, Functional and economical, cargo bikes on the rise, Next America City, viewed 31 August 2013, <http://nextcity.org/daily/entry/functional-and-economical-cargo-bikes-on-the-rise>

Market Definition
bicycle industry
Brisbane Area
To customers who:
for shopping purposes
prefer alternative, short-term travel options
Market Trend
Market Trend

Increasing bicycle users in Australia
Influence on customers:

-> advance bicycle industry
-> new technology & features further benefit cyclists.
Source Details:

Australian Bicycle Council (2011) claimed that 18% of Queensland residents ride in a week, increasing to 26% in a month and 39% during a year. Otherwise, close to 60% of households have at least a bicycle.
Influence on INNOBIKES:

-> more competitors may emerge in market

Increased market competition:
- greater discipline to keep costs down
- faster pace of innovation

provides more opportunities to gain sales
 Influence on customers:

Increased market competition:

- benefits from price competition (price cutting)
- greater variety of products (given more choices)
- better customer service
Full transcript