Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.
Executive Summary
There is a certain demand for electronic scooters in the market, and their popularity keeps growing. Canadian people also follow the trend and actively use the devices to move across the cities to easily and quickly achieve the final destination. The purpose of this paper is to prove that the company should launch a new product: an electric scooter with a microprocessor to deliver distance efficiency. The scooter will have numerous competitive advantages, and the following paragraphs explore them, the brand name, and the test market. To determine the perspective of the new product, the paper presents a marketing mix that analyzes the product, best options for promotion, price, and place.
Description of the Product and Brand
The new product will be an advanced and highly efficient electric scooter. What will make this product unique is its enhanced functionality it will have microprocessor chips used in electric autos that provide efficiency in distance and energy. The consumers will receive the following benefits: a fast, safe, and lightweight vehicle that will be convenient enough for storage, cost-efficient, and time-saving. In other words, the owners of these scooters will receive an opportunity to enjoy their way to work or college.
Further, the brand name for the product will be Magna. Since Magna is a highly recognized brand with a good reputation and is respected by customers (Magna, 2022), it is possible to state that this brand name will add specific value to the product and our company. It has unique skills that apply to the creation of the entire vehicle, and Magnas entrepreneurial approach and fundamental principles are pushing the limits of innovation, taking responsibility, cooperating, staying creative, and striving toward progress. Looking ahead, Magna recognizes that mobility is developing more quickly than ever. Excessive regulation, whether in the areas of safety or the environment, as well as changing consumer demands, are major drivers of change. Today, electrification is more than simply a controllable factor in fleet emission management. It serves as a differentiation for OEMs in terms of addressing moral obligation and igniting customer interest. Therefore, our company will benefit from cooperation with such a respected brand, and the final version of the product will be unique and safe and meet all the requirements.
Main Target Market
Electric scooters are a great way for people to get to work or college. Therefore, this products target group will be young adults who live in urban areas with quality roads and either study or have jobs not far from their homes. There are certain characteristics that appeal to the target market of the product. According to the statistics, the predominant age range of users is from 25 to 34 years old (Electric Scooter Share Pilot, 2020), but we can expand it to include customers from 21 to 40 years. Generally, men use the device more often than women, and while the first group comprises 55%, female users are 45% (Electric Scooter Share Pilot, 2020). Considering the income of those who generally buy electronic scooters, the numbers show that about 15% of the target market has earnings of $125,000 annually (Electric Scooter Share Pilot, 2020). Furthermore, 35% of the population used electronic scooters more than 16 times, and 47% used them for practical purposes such as getting from one destination to another quickly (Electric Scooter Share Pilot, 2020). The rate of usage of electronic scooters is constantly growing even though the use of the car or public transport still remains the main means of transportation. Overall, the majority agrees that it is a decent way of transportation for short-distance trips.
Electric scooters have begun to overtake walking and cycling for all trip types, which was previously their major use case. According to data found on Statista, researchers expect the U.S. and European electric scooter industries to be worth $12 billion and project Chinas market alone to reach $6 billion (Carlier, 2021). By 2029, the scooter market will be worth about $32 billion worldwide (Carlier, 2021). The general public is rapidly viewing them as handy, quick, and affordable ways of transportation. Consequently, commuters seeking a means to shorten the last mile to their homes or places of employment are the potential customers for an electronic scooter; another significant market is students on college campuses. Selling the vehicles to commuting urbanites and commuters may represent the best market potential for such quick transportation solutions. Electric scooters are, after all, compact and lightweight enough to transport on trains and buses.
Alternative Purchase Options for Consumers
While electric scooters seem to be rather useful, convenient, and safe, there is a range of alternative options for people who need simple vehicles. Thus, the target customers may choose a mere scooter, an electric bike, a bicycle, or even a moped (Austin, n.d.). The price for these means of transport and their characteristics vary, and young adults may prefer them instead of an electric scooter.
The Main Competitors
There is a certain number of competitors in the market that are necessary to consider. For example, competitors such as Bird Rides, Govecs AG, and Lime are concentrating on the introduction of e-scooter rental services in several nations with a joint venture plan to increase their market share internationally. To achieve that, leading market players are concentrating on a variety of growth tactics, including R&D initiatives, mergers, and the introduction of new products. For instance, Ford and the new lab collaborated in October 2021 to integrate electric car technology into the mobility innovation initiative (Electric Scooters Market Size, n.d.). Helbiz launched innovative standing electric scooters in November 2021 in preparation for establishing a new racing league (Electric Scooters Market Size, n.d.). Some of the major competitors are also Vmoto Limited, Yadea Technology Group Co., Ltd., Hero Electric, and Terra Motors Corporation.
Further, the e-scooter industry is divided into three battery categories: sealed lead acid, lithium-ion, and nickel metal hydride (SLA). Over the projected period, the lithium-ion battery market is anticipated to grow at a strong CAGR of 10.4% (Electric Scooters Market Size, n.d.). The need for Li-Ion batteries has increased as a result of rising environmental consciousness and their outstanding quality over encased acid and NiMH batteries. (North America Electric Scooters, 2021). The introduction of these batteries has raised the cost of scooters in emerging nations since they are more expensive than the other two. These batteries have high-discharge cycles, which protects them from harm.
Positioning Strategy
Currently, the target market needs a safe, quality, convenient, lightweight, not expensive, and quick mode of transport, and the electric scooter can meet these needs. Scooters have now started to replace having to walk and bicycling for all trip types, and the average person increasingly sees them as practical, quick, and affordable vehicles (Nikiforiadis et al., 2021). Therefore, the scooter meets the target markets primary needs to quickly and easily reach the destination in a short matter of time the product will be able to get a high speed and drive for 200KM. Since the potential customers will own the scooter rather than rent it, the question of transportation is crucial. This scooter will be a lightweight device that will be comfortable to carry with them. It also has to be compact due to the fact that the consumers will most likely want to leave it in the workplace or any other place to use it after they finish their business (Sanders et al., 2020). Moreover, the product will provide the clients with a sense of security because they will not have to worry about charging it too often and get anxious that the battery might be low during the ride.
Parity and Difference
There are several similarities and differences with the competitors that need to be considered in order to market the product successfully. For example, the GoTrax GLX V2 has a 250W power and 12 miles range which is similar to the characteristics of Magnas product (Prospero, n.d.). Still, it requires more charge than the regular vehicle, which is the main distinction. The Segway Ninebot Kickscooter Max is a severe competitor because it can travel 40 miles on a single charge, which is twice as far as many other scooters batteries can (Prospero, n.d.). This is also a treat since the Magna scooter has a similar quality, but it stands as the competitor in the price affordability and more lightweight device. The same situation is with another competitor Unagi Model One; despite its great design, it costs significantly higher and is hard to carry around (Prospero, n.d.). Even though there are several models of scooters that can be easy to take everywhere, that are fast and cheap, Magnas device has an important distinction.
The Products Most Distinguishing Feature
There are specific features that will distinguish the product of Magna from other competitors. First, such an electric scooter will be a new and high-quality item. Its microprocessor chips from electric cars will deliver efficiency in terms of distance and energy. One charging procedure will be enough for a person to use the scooter and drive about 200KM, using 25% less energy thanks to the microprocessor chips. It is also lightweight and does not exceed 40 pounds, making the scooter convenient to carry to any place. Due to these characteristics, the product significantly outweighs the majority of the competitors on the market. Unlike other devices that usually have only one of the mentioned features, this electric scooter will have them all simultaneously. Customers will have an opportunity to travel fast around the city without the need to recharge their scooters too often. Most importantly, it will be compact and lightweight, making it easy to take the vehicle everywhere the person needs to go. Finally, the price of $600 is relatively low, considering all the characteristics and costs of other competitors.
Marketing Mix
Product
The product is an electronic scooter with specific features that are supposed to distinguish it from the other players in the market. Specific characteristics set Magnas product apart from those of its competitors. What makes it different is that the new electric scooter will make use of the same microprocessor processors that people utilize in electric automobiles to achieve efficiency in terms of distance and energy. Thanks to these chips, the scooter will be able to go for much longer distances without requiring additional recharging energy spending will be 25% less. It is also lightweight, weighing little more than 40 pounds, making it easy to transport to any location. These features considerably distinguish the product from the bulk of its market rivals and add value to it. As for the needs of the target market, it is perfect for busy people who want to get to the place without spending much time in traffic, waiting for their bus, or walking on their own (Investors Business Daily, n.d.). It is also less money-consuming in the long run than using a car or taxi service, which gives it more value than the alternatives. In addition, the main benefits for the target market are the high speed, long-lasting battery, and the affordable price considering all the qualities.
Price
Since the target market is people who strive to have a possibility of reaching their destination such as work and move around the city fast and convenient, the value proposition should be accordingly. The customers appreciate the quality and mobility that the scooter provides, and therefore the value proposition should be Fast and easy through the city. It emphasizes the benefits that the consumers get when they purchase the product at a relatively affordable price and considers all the qualities of the device. The cost for the scooter would be $600, which is the middle option between the most expensive and lowest offers on the market.
Pricing Method
There are several pricing methods to set the price accordingly to the companys and customers needs. The first one is value-based pricing which is precisely what it seems like: it is pricing based on the needs of the client. Value-based pricing is defined more specifically as setting a product or services price on the basis of what the intended audience thinks it is worth (Kotler & Keller, 2016). Value-based pricing allows looking outside rather than within the business or laterally toward rivals. Because the company bases its pricing on the customers perceived worth or what consumers say they are ready to pay, there is a chance that it may charge more than rivals. If they want and can spend more than the competition, that will result in more sales revenue. When using value-based pricing, the primary focus is on the consumer.
Consumer feedback, questionnaires, and interviews are the main methods for gathering customer information for value-based pricing. This focus on the consumer will probably improve the connections with the present clients (Kotler & Keller, 2016). They will value the dedication to aiding them since the company is more aware of their requirements. As a result, according to Kotler and Keller (2016), retention will rise, and there will be a threat to the churn. However, there might be certain complications regarding the pricing method. There is a need to be committed to using a value-based pricing model in order to succeed. It takes time to establish the foundation for measuring the buyer personas. It is harder than it seems to determine customer values, which is why so many businesses use competitor-based methods. As a result, once there is a chosen pricing plan, there will be a need to improve and develop the data. Thus, the process is never fully over, and it is necessary to monitor all the changes.
Place
Distribution Channel
The full distribution channel for the electric scooter will be a dual distribution. When a firm uses dual distribution, it sells its goods both directly to consumers and indirectly through independent distributors and merchants (Sun et al., 2022). They utilize many distribution channels to connect with the final consumer, which expands the products market. The manufacturer may communicate with customers directly while using a direct distribution approach. Manufacturers will select to collaborate with distributors or brokers when utilizing the indirect distribution technique.
By using this technique, businesses directly give part of their duties to mediators. These middlemen often portray the product in front of the final consumer as an expansion of the producer. Distributors usually manage the delivery of the products, whereas brokers typically manage the marketing of the commodity to retailers (Sun et al., 2022). Distributors purchase goods from manufacturers to resell to retailers at a profit. The distribution channel can significantly add value to the target market for many reasons. For instance, the constant development and monitoring of the trends will contribute to the improvement of the product quality and allow a greater variety of people to access the vehicle and buy it.
Strategy
There is a need to use a pull strategy in placing the electronic scooter. It ensures sustained business expansion and allows to maintain supremacy in a certain sector or industry (Corporate Finance Institute, 2021). Moreover, there is a chance to increase loyalty and the base of repeat customers along with the growth of brand awareness and familiarity through consumer interaction. Both social media traffic and sharing should be expanded as well as website traffic from social, organic, and referral sources.
Without spending a fortune on advertising, it is possible to expect the growth of sales and income on a budget. Finally, it will engage customers early in their purchasing journey before they have any idea what they want to buy. Therefore, regarding special consideration of the channel distribution, it is crucial to cooperate also with the firms that provide the rental services of the electronic scooters (Kotler & Keller, 2016). While there also will be an option of direct sale to customers, some of the buyers might find the rental business which will provide the device for the people who want to use it temporarily, which is beneficial for the promotion.
Promotion
The message should portray all the benefits the customer will receive if they buy the electronic scooter from Magna. These benefits will include the fact that there are no ongoing costs for maintenance or replacement parts, and the scooters are strong and resilient. Parents who wish to get one for their children are aware of what a fantastic present it is since it combines convenience and cost-effectiveness with enjoyment. The expensive cost of petrol, oil changes, maintenance, and other ancillary costs associated with owning an automobile or other commercial vehicle (Austin, n.d.) all disappear when one uses a motor scooter as the primary form of transportation. Purchasing a scooter appears to be the natural decision for city inhabitants who commute a few blocks through downtown streets for business or recreation.
Communication Channels
One of the best ways to promote the product is through digital marketing channels. This is also the most effective and widely accepted kind of advertising, allowing to reach an endless number of individuals with the message (Carlevatti, 2021). Digital marketing includes, among other aspects, email marketing, blogging, affiliate marketing, YouTube, online shopping, and Google Ads. All of these are examples of online marketing, one of the most popular channels for advertising.
In relation to digital marketing, the emphasis should be on social media with the brand page. Social media is currently the most effective tool for advertising, allowing to raise sales significantly (Carlevatti, 2021). Magna should regularly share content on social media in an effort to meet new people. There is a need to provide details regarding the advantages and potential worth of the electron vehicle in the post. Additionally, it is necessary to offer test rides and feedback videos.
Conclusion
Overall, analysis of the product, place, price, and promotion identified the specific strategies necessary to use while launching the electron scooter on the market. Considering the benefits of the relatively low cost, lightness, high speed, and long-lasting battery, the device has great opportunities to outstand the competitors on the market and reach the target audience. Using social media and digital marketing for promotion will be the right tactic for targeting potential customers along with dual distribution. The analysis of the competitors and the similarities will allow us to focus on the products strengths and develop a clever marketing strategy that will help reach the target audience. Finally, taking into consideration the customers needs, Magna will be able to strategically plan all the steps and successfully launch the electron scooter based on the provided marketing mix.
References
Austin, A. (n.d.). Choose your e-transportation method e-bike, trike, scooter or moped. Spinlister. Web.
Carlevatti, J. (2021). Most effective digital marketing channels for your business. Career Charge. Web.
Carlier, M. (2021). Estimated size of the global shared e-scooter market in 2025, by region (in billion U.S. dollars). Statista. Web.
Corporate Finance Institute. (2021). Pull marketing strategy. CFI. Web.
Electric scooters market size, share & trends analysis report by product (retro, standing/self-balancing, folding), by battery (sealed lead acid, NiMH, li-ion), by voltage, and segment forecasts, 2022 2030. (n.d.). Grand View Research. Web.
Electric scooter share pilot. Stakeholder report back: What we heard. (2020). Calgary.
Investors Business Daily. (n.d.). Electric scooter makers see sales opportunities amid the rental boom. Web.
Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson.
Magna. (2022). Company. Web.
Nikiforiadis, A., Paschalidis, E., Stamatiadis, N., Raptopoulou, A., Kostareli, A., & Basbas, S. (2021). Analysis of attitudes and engagement of shared e-scooter users. Transportation research part D: transport and environment, 94, 102790. Web.
North America electric scooters and motorcycles market research report: By type (motorcycle, scooter, kick scooter), battery capacity (<5 kwh, 510 kwh, 1015 kwh, >15 kwh), battery (lead acid, lithium-ion), application (sharing services, food and grocery, personal users) industry analysis and growth forecast to 2025. (2021). Prescient Strategic Intelligence. Web.
Prospero, M. (n.d.). The best electric scooters in 2020. Toms Guide. Web.
Sanders, R. L., Branion-Calles, M., & Nelson, T. A. (2020). To scoot or not to scoot: Findings from a recent survey about the benefits and barriers of using E-scooters for riders and non-riders. Transportation Research Part A: Policy and Practice, 139, 217-227. Web.
Sun, L., Jiao, X., Guo, X., & Yu, Y. (2022). Pricing policies in dual distribution channels: The reference effect of official prices. European Journal of Operational Research, 296(1), 146-157.
Do you need this or any other assignment done for you from scratch?
We have qualified writers to help you.
We assure you a quality paper that is 100% free from plagiarism and AI.
You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)
NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.
NB: All your data is kept safe from the public.