This is preparation work for the external assessment exam on Unit 2 - Developing a Marketing Campaign. This document contains comprehensive marketing plan for a fictional cycle selling business called Biki. The marketing plan has the correct layout and structure, needed to achieve distinction. Furt...
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Unit 2 Developing Marketing Campaign
External assessment
Activity A – prepare rationale for the bakeshop marketing campaign which can be
(establish business which want to increase profits or new business in which case it will be
about increasing awareness)
1. The Rationale - Aims and objectives for Biky’s marketing campaign [8 marks]
Biky is bicycle shop which aims to increase its revenue by 40% by the end of 2018. To help achieve
this aim a number of SMART objectives have to be set:
1.1 - Reach 30% more people in the area, this is important because it will increase brand awareness
and drive new people into their customer’s base, because people will only go in the shop if they
know about it. As the brand awareness increase people will start to talk, which will become a word
of mouth advertising which is free and is one of the best ways to advertise.
1.2 - Gain 25% of the bike market in London and 5% of the online market floor. This would put the
shop in the top three most successful bike shops in London and get even further recognition and
exposure. From this point the shop will have a substantial number of regular customers and stable
profit, which will enable the owners to afford more advertising and further develop the shop.
Research and Analysis of Market Information / Justification [22 marks]
2. Introduction to the business (Refer to the case study!) Product, Price, Place and Promotion. >
Summary of points for the business.
Biky is a small bicycle shop based in London, which is specialised in the niche market of folding bikes.
The shop is doing well due to the accessories sold and the services like bike repair which are
provided. The shop owner wants to expend his business and increase the bikes sales in his shop. To
achieve that he has decided to hire a marketing agency to develop marketing campaign.
3. (SWOT + PESTLE – bullet points) – Summary and analysis of SWOT + PESTLE > Summary of points
for the business.
SWOT ANALYSIS OF BIKY
Biky is in the really competitive bike market, this means that in order to successfully achieve the
aims and objectives set the by owner, it is necessary to carry out a number of analysis. One of the
most important analyses is SWOT which looks at both internal and external aspects.
Strength –The shop is based on the high street of London which means that it has great exposure to
a lot of potential customers. Also, there aren’t any other bike shops in the area which eliminates the
element of direct competition. The shop is specialised in folding bikes, which have many advantages
over the other type of cycles. You can travel free and without booking restrictions on rail, bus,
underground, ferry or air services. The research of British Cycling Economy e-magazine shows that
the sales of cycles in the UK increases every year with the folding bike category showing the greatest
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increase. This means that the demand of this type of bikes is increasing. More then 3 million cycles
were sold in 2016 UK alone, which shows that the market is huge and there is a lot of revenue to be
made. Cycling is currently hot topic on the political and social agenda, and increasingly promoted as
a healthy, fun and cost-effective way to improve well-being and support the environment for all age
groups. Another strength is that people in the age group of 40+ (that is within our ideal target
market) prefer to buy offline as they like to see and feel the product before buying, this gives Biki
competitive advantage over the online competitors and can win over a lot of clients.
Weakness – It is difficult to raise visibility and brand awareness among all of the perspective
customers because of the strong competition. Another point to be considered is the seasonal nature
of the cycling market – sales are directly affected by the weather. A wet summer is not good for the
business on the other hand sunny and worm weather is shown to greatly increase bike sales. The
fact that the cycle market is seasonal means that during winter and wet weather the business may
struggle to make any profit.
Opportunities – As people become more environmentally aware this may lead to increase in bike
sales especially with the use of the right marketing campaign. The bicycle is really popular gadget
with a market of about 100 million sold annually in UK. But with Brexit in the horizon there is
financial uncertainly coming up. The prices of living in the UK are increasing and especially so in the
case of gasoline and diesel. Running a car has a lot of expenses associated with it, like tax, fuel,
insurance, maintenance which may lead to people start looking at alternative ways of transport. The
national statistics are showing increase in bikes sales every year, and the Folding Bicycle is one of the
fastest growing bicycle categories because of its many practical and conceivable uses in recreation
and personal mobility. This means that the cycle market share is growing, providing good
opportunities for the Biky shop.
Threats – There are many online shops specialized in selling bikes like bicycles4u.com and
cycleking.co.uk as well as some well-established online retailers like Amazon that have a wide range
of bikes up for sell. Those shops offer the lowest prices possible in order to keep up with the
competition and can be a serious treat for Biky as younger customers are not freight so shop online
if the price is lower. With the use of the internet people become more and more price aware and if
the shop doesn’t offer equal or even cheaper prices than online then a lot of people would go online
and buy their bikes from there. It is hard to compete with e-commercial bike business because they
don’t have a lot of the expenses a physical shop has, like paying staff and renting the shop. There are
also hundreds of cycle shops in the UK some of which really successful and well know. Evans Cycles
and Cycle Surgery are two well know cycle retailers that have shops all around UK. Because they are
well known, people trust them and it can be hard for a new cycle shop to win customers. In terms of
folding bikes, the biggest competitor is Brompton, which is the leader of manufacturing and selling
folding bikes since 1970s. Brompton has shops all around the world including UK in London. The
shop is on two levels and has bike and accessories show room and also workshop making it the
biggest shop for folding bikes in the UK. This company has continued to grow with 30% increase of
sales for number of years and can be a serious competitor of Biki.
PEST ANALYSIS
• Political factor - Many people are cycling on London major roads; the numbers have nearly
doubled since 2000. The UK government has a number of agreements and laws to reduce the
harmful emissions and improve the air conditions in the cities. Cycling is the most environmentally
friendly way of traveling and at the same time regular cycling is a great way to improve physical and
mental health, improving well-being and reducing the risk of premature death and ill- health. The
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