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A Step Towards Reducing Obesity by Good Cycles

MARKETING PLAN; ‘A Step Towards Reducing Obesity by Good Cycles’

A case study of Good Cycles

Executive summary:

The aim of the report is to prepare a marketing plan for the next 12 months for a social enterprise in Australia. Good Cycles has been selected as the social enterprise. Good Cycles was founded by Loretta Curtin and Luke Wright with the inspiration of growing a non-profit organisation. The organisation offers practical and time saving services to the cyclists of Melbourne.The Non-Profit Organisations in Australia is facing challenges due to the downturn of the global economic condition. This situation has contributed to resourcing pressures for the non-profit sectors.It has been found that the number of cyclists in Australia has increased in the past decade. From 13% population in 2005, it has increased to 19% who cycled regularly. This equals to 3.7 million people. There are certain factors that actually favour this industry. For instance, the climate of Australia is pleasant enough for a ride.The Not for profit organisations have gained positive impact on the economic downturn because this has increased the focus on good governance and management of risks and reserves.This particular marketing strategy has aimed at another social issue, obesity that has created major health concern around the world. The main aim of this marketing strategy is compel the target population to use bicycles to improve their health. Cycling for 30 mins regularly will help them to remain fit and create an obesity free society. The campaign can be named as ‘RIDE FOR YOUR HEALTH’ campaign.Thus, the campaign should encourage the target group from aged 14 years to 45 years, including both male and female. The economic condition of the target group of people needs not to be very high as a bicycle is easily affordable by all.The promotion technique will be highly focused on the Social media marketing as well. The Facebook page and the Twitter account will have to remain active and there should be continuous posting on these pages. The posts shall be related to the benefits of cycling and how Good Cycles can help in improving the health of the one who rides the cycle. Focus has to be made towards the increasing cases of obesity.In order to keep a check of the entire marketing and communication process, it is expected to keep getting feedback of the entire marketing process and to make changes whenever required.

Introduction:

            The aim of the report is to prepare a marketing plan for the next 12 months for a social enterprise in Australia. Good Cycles has been selected as the social enterprise.Good Cycles was founded by Loretta Curtin and Luke Wright with the inspiration of growing a non-profit organisation. The organisation offers practical and time saving services to the cyclists of Melbourne. The organisation has its own Dockland bike shop, service centres and workshops (Goodcycles.org 2017). They offer cycle servicing while the owner remains at their respective works in offices, Universities or any other public places. In addition to this, they also teach the cyclists about bike maintenance in order encourage people to deliver a bicycle-based community. Based on the detailed situational and market analysis, a marketing plan for Good Cycles will be framed.

Part 1: Marketing plan:

Part A: Situational Analysis

a. Micro environment: (PESTEL ANALYSIS)

  1. Economic environment: With a GDP of $1.1 trillion and a growth of 2.5%, the economic condition of Australia is at a stable condition (Solomon 2014). The country also attracts foreign investment in major industries. The financial crisis is substantially lower than other countries.
  2. Technological environment: Advancement in the technology has resulted in better communication and marketing approach. In fact, there has been improvement in the design and structure of the vehicles as well. So, there is opportunity for the company to use technological advancement in improving its products and service.
  3. Legal/Regulatory environment: The strong law on property rights has helped to reduce the corruption. The Australian taxation system is also favourable towards the non-profit organisations. They enjoy income tax exemption, goods and service tax concessions and even deductable gift receipt status.
  4. Political environment: The NGOs in Australia are expected abide by the legal obligations of Australia. The Australian Aid Program’s Fraud Policy Statement also stresses to inform and report about the fraud cases related to NGOs (Armstrong et al. 2015).
  5. Socio-Cultural environment: Australia is internationally competitive in terms of its services, technologies as well as high-value-added manufacturing goods. With the total population of 23.9 million, people are well concern about their health as well as the environmental condition.
  6. Environmental factor: The decreasing amount of natural resources accompanied by factors like global warming has created an alarming situation for the people to transform their regular habit that is more environmental friendly.

b. Competitive environment

i. Industry:                           

            The Non-Profit Organisations in Australia is facing challenges due to the downturn of the global economic condition. This situation has contributed to resourcing pressures for the non-profit sectors. It is a common problem that the non-profit organisations face lower returns on the funds invested that tightens the corporate budget. In addition to this, Australia has seen rise in the rate of unemployment that has also created a significant constraints on the ability of this industry towards the global financial crisis. However, as argued byWilkenet al. (2015), there are some NGOs that work for the health, community support and the welfare of the people who get significant support from the government as well.

            Keeping the downturn in the industry, the NGOs are found to cut cost and increase their fundraising effort. In fact, the economic downturn has also reduced the support from the major supporters and even from the government. On the other hand, the demand for community services has increased. From the report, it has been observed that 65% of the NGOs has found an increase in the demand of their service.

ii. Competition:

            The NGOs are finding more times in spending with the partners in order to manage their relationship. The NGOs always wanted to remain in a long term relationship so that they can get help from their partners whenever necessity arises. Good Cycles has turned two years old and at the same time, it has also redirected new competitors and challenges for itself. The competitors could be the other NGOs in Melbourne. These are Beyondblue, Oxfam Australia, Philanthropy Australia Inc, Marie Stopes International Australia and others (Heraldsun.com.au 2017). In addition to this, the increasing impact of technology has also resulted in great competition as more people are shifting their preferences from bicycles to other vehicles.

c. Company/Product

i. Company trends:

            Good Cycles work in big workshops and ware houses and has appointed diverse skilled professionals and experts. The main work is to provide service and the repair nad maintenance of bikes and cycles. The company is also working with many disadvantaged people of the community and provide hands-on bike based employment to people. The aim is to create a transition in the bike industry. There are some other bicycle organisations as well thatwork for a Nobel cause towards the society like the Australian Cyclists Party. 

ii. Product trends:

            It has been found that the number of cyclists in Australia has increased in the past decade. From 13% population in 2005, it has increased to 19% who cycled regularly. This equals to 3.7 million people (Cycling.org.au 2016). There are certain factors that actually favour this industry. For instance, the climate of Australia is pleasant enough for a ride. Melbourne has hipster fraternity tooling in the inner city that creates a comprehensive network of cycling path for the cycling enthusiasts. From these instances, it can be easily said that the demand of the product has increased since past time.

d. Customers:

            The customers of Good Cycles are the bicycle lovers. According to reports, the popularity of bicycles has seen no bounds. The love for bicycles has increased among both men and women. The age groups of these bicycle lovers range from 14 to 35 years. In fact, children and old people are also found to be enthusiasts on buying and riding cycles. On the other part, the company serve those who are needy, that include, refugees, unemployed youths and others.

e. Internal Company analysis:

            If the level of trust, strength and reputation of the company is taken into account, it has to be said that within a small duration of time, the company has managed to gain much popularity in the market. The members at the management level are all successful and high regarded commuter who are specialised in bicycle retailing, manufacturing or even in the management process. Good Cycles has helped the community in different way by stepping towards eradicating long term unemployment, refugees and asylum seekers. The company has been able to create the belief that bikes can actually change lives. In fact, many of the programs initiated by Good Cycles have been funded by the financial institutions of Australia.

f. Collaborations/Alliance:

            Good Cycles has been found to make alliance with a number of schools, colleges and even rehabilitation centres to help those who are in distress. The organisation is often found to come up with programs where bicycles play a major role (Goodcycles.org 2017). In such cases, the organisation is found to collaborate with other organisations as well; such as, in schools or Universities where people use bicycles as a means of transport. Otherwise, there is no such alliance with any other organisation

III. Opportunities and Issues Analysis (SWOT ANALYSIS):

  1. Strengths:The reputation of the company and positive response of the consumers have been strengths to the particular organisation. Good Cycles has been working for a number of vital social reasons that made it acceptable among the population of the country.
  2. Weaknesses: The economic distress around the globe has resulted in the change in the mindset of the people. The introduction and changes in the taxes and superannuation has brought new guidelines to the business and made it tougher for the organisations to survive (Abc.net.au 2017). The organisation also has limited numbers of investors and their work is financed from the commercial benefits gained by selling the products.
  3. Opportunities:The Not for profit organisations have gained positive impact on the economic downturn because this has increased the focus on good governance and management of risks and reserves. In fact, the NGOs have gained financial opportunities as well (Ass.gov.au 2017). The increased demand of this sector has created the opportunity of making partnership with other organisations that would ultimately result in recruiting better and skilled labour.
  4. Threats: The ongoing issues related to managing the budget of the not for profit organisations can be a major threat to the organisation. The increasing numbers of other not-for-profit organisations that work on other social issues are also a threat to the organisation as more investors can shift their choice of investment to others.

Key issues summary:

            The issues that the organisation might face are related to the ongoing confusion of the economic distress around the globe. The expenses of the organisation might exceed of what is spend on the charitable and non-profit works. This will result in the decline of the overall profitability of the organisation and ultimately the organisation might have to suffer.

IV. Strategic/Business Objectives

            The present business strategy is to create awareness about the cause that the organisation focuses on. At the same time, increase its financial condition that the money can be used for the purpose of carrying out the non-profit activities. The strategic business objectives are:

a. Financial objectives:

  • To increase the revenue of the company by 3% in the coming 12 months.

b. Marketing Objectives

  • To create awareness among the people of Melbourne to use bicycles as a vehicle for transport for short distances
  • To improve the image of the organisation as a social enterprise that works for the benefit of the society

V. Market Strategies

            Good Cycles, the charity and social enterprise was founded on the realisation that bicycles can change the lives of people and can also help in alleviating a wide range of social issues that prevails in the society. This social enterprise has come up with many other promotional strategies that have actually helped the organisation to create an image in the society where it works. This particular marketing strategy has aimed at another social issue, obesity that has created major health concern around the world (Goodcycles.org 2017). The main aim of this marketing strategy is compel the target population to use bicycles to improve their health. Cycling for 30 mins regularly will help them to remain fit and create an obesity free society. The campaign can be named as ‘RIDE FOR YOUR HEALTH’ campaign.

a. Segmentation and Targeting:

            The campaign shall be targeted to people of all the ages because it has been found that obesity also occur among the children and not only to the adults. Thus, the campaign should encourage the target group from aged 14 years to 45 years, including both male and female. The economic condition of the target group of people needs not to be very high as a bicycle is easily affordable by all (Kumar et al. 2013). The people of Melbourne are the primary target group of people but the success of the campaign can also target other places of Australia as well.

b. Positioning:

            In order to differentiate this particular organisation from the other, it is recommended that the campaign shall bring the idea that cycling is good for one’s health and it also contributes towards making the planet a better place for living. With the depletion of natural resources, it is important to save resources as well. The idea is also that when one buys a bicycle from Good Cycles, the person is benefitted in terms of his health as cycling can help them overcome obesity; and at the same time a small contribution is used for the purpose of improving the environment.

c. Marketing Mix

i. Product: The products to be sold are bicycles. The bicycles are available in different types depending on the styles and speed that the bicycles offer.

ii. Place: As mentioned the promotional activity will be carried on in Melbourne. Since, the digital and new media is also involved in the process of promotion the promotion might even reach at other places of Australia as well.

iii. Price: Depending on the features of the bicycles, the price range also varies. The expected price of the bicycles from Good Cycles starts from $350 and can reach up to $3500 as well.

iv. Promotion:The promotion will be carried on for a period of 12 months and shall aim at creating a buzz among the people that their small effort can help them to fight obesity and at the same time they can contribute towards the environment as well. The promotion will follow social media marketing largely but there will be other promotional means like cycling marathon, trade show, sponsorship in some events and others.

            The promotion technique will be highly focused on the social media marketing as well. The Facebook page and the Twitter account will have to remain active and there should be continuous posting on these pages. The posts shall be related to the benefits of cycling and how Good Cycles can help in improving the health of the one who rides the cycle. Focus has to be made towards the increasing cases of obesity. In addition to this, there will be press releases and event shows as well every three or four months where the organisation will come up with their promotional idea (Shethand Sisodia2015). The online promotion will include writing blogs and articles on the importance of cycling as a means of fighting against obesity. The idea of the Social media marketing is to share the promotional content and reach out the maximum number of people as possible.

VI. Action Programs

a. Budget:

Campaign types Quantity Per Unit Cost Total Cost
       
Banner ads 30.00 $150.00 $4,500.00
Newspaper ad 120.00 $50.00 $6,000.00
In-store marketing 50.00 $200.00 $10,000.00
POP 50.00 $170.00 $8,500.00
Public Events 12.00 $1,500.00 $18,000.00
Sponsorship 6.00 $5,500.00 $33,000.00
Press Releases 12.00 $100.00 $1,200.00
Client Events 12.00 $150.00 $1,800.00
Content marketing     $ 50,000.00
Social media marketing     $ 70,000.00
Online marketing     $ 45,000.00
Television marketing     $ 50,000.00
Radio marketing     $ 20,000.00
       
Total     $ 318, 000

Table: Proposed Budget of the marketing plan

(Source: As created by the author)

b. Specific Programs and timing

Activities Jan Feb March April May June July Aug Sept Oct Nov Dec
Social media marketing                        
Television marketing                        
Radio Marketing                        
Online marketing                        
Sponsorship                        
Client meeting                        
Press release                        

Table: Marketing Plan Calendar

(Source: As created by the author)

c. Programming calendar:

Activities Jan Feb March April May June July Aug Sept Oct Nov Dec
Set out marketing objectives                        
Hire the marketing professionals                        
Start with the various marketing processes                        
Taking feedback of the marketing process                        
Making changes if required                        
Carry on with the plan                        
Measure the success of the plan                        

Table: Programming Calender

(Source: As created by the author)

VII. Financials:

            The success of the marketing plan will definitely help to achieve the objectives of the marketing plan. It is expected that the revenue of the organisation will increase by 20% with a 25% increase in the sales figure of the bicycles and other services offered by the organisation.

VIII. Controls:

            The success of the marketing plan can only be known only the complete process will be monitored process. Some of the key performance indicators of the success of the plan are:

  1. Increase in the sales of the bicycles: If the sales rate increases once the marketing plan starts, it can be expected that the plan has been successful and the sales of the bicycles will increased by at least 20%.
  2. Increased rate of response over social media: The marketing plan will also be based on the social media marketing and so it is expected that there will be huge response on the social media like Facebook, Twitter. In addition to this, since the online marketing includes blogs and articles, the response can be gained from those posts as well.
  3. Better consumer satisfaction: The customer satisfaction survey can be carried on that will reveal the satisfaction level of the consumers. It is expected that the idea of the marketing plan will be accepted by the people and that The complete marketing plan will be a successful one.

            In order to keep a check of the entire marketing and communication process, it is expected to keep getting feedback of the entire marketing process and to make changes whenever required.

Part 2: Reflection

            The outcome of the analysis can be counted on the success of the marketing plan as proposed here for Good Cycles. It has been understood that at the timed of coming up with a marketing plan, the elements of the marketing mix are not the only factors that should be taken into consideration but one needs to conduct a detailed market analysis as well because the proposed plan depend on the market where the particular organisation operates. The market analysis involves both the internal and the external market. Checking the political, economic and other social factors before commencing for any marketing plan is important so that the organisation would not face any trouble while carrying out the marketing. Analysing the competitive environment holds equal importance as people should be given the opportunity to distinguish a brand from the other existing in the same market.

            The financial plan and the budget of the marketing plan are equally important for a marketing plan because the cost of marketing should not exceed the profit margin of the organisation. So, the marketing plan should always be made abiding by the budget that has been allocated for the particular purpose. Considering the target group of people is another important factor because not everyone can be targeted by using the same media. The plan that has been proposed here is expected to bring better outcome because people are becoming more conscious about their health and their planet as well. Moreover, as it has been found that the craze for bicycles has increased in the recent time that would definitely contribute towards the success of this marketing plan. It is expected that people will understand the value of riding bicycles and would purchase a one that would make the plan a successful one.

            In case of recommendations to be suggested for this marketing plan, it can be said that the frequency of the marketing process should be increased that would keep reminding people about their contribution towards their health and society. The message that will be delivered should be easier for the people to understand that they can relate it with themselves and can contribute towards the cause. The complete marketing plan should be based on the financial plan because increase in the budget of the plan can result in failure of the entire marketing process. On the completion of this task, I have understood how the marketing process for an organisation actually works and what the factors that needs to be considered before framing a marketing plan. This would definitely help me in future as I would like to pursue my career in the marketing field only. While doing this marketing strategy, I have also gone through many case studies that have contributed equally to my knowledge and ability. I can easily relate the theoretical understanding with the practical factors after the completion of this study. I hope that these knowledge will definitely help me in my future and become a stair towards my success.

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