MKT303 International Marketing

Background

• Established in 2008,Stealth electric bikes is the leading manufactures of electric bikes in the country providing quality products and services that meets the customers taste and preferences year after year (www.stealthelectricbikes.com)

• The business was established as a better alternative to the traditional bicycles which were limited to hills and were tiresome when pedaling. They are ecofriendly and sustainable form of transport (Fishman and Cherry, 2016).

• E-bikes are also effective in commuting than cars which are prone to traffic jams and costs an average of $6000 annually to drive in Australia.

Current marketing strategy in Australia

• Product-Stealth electric bikes brand provides quality electric bikes using thehighest quality parts with the latest innovation and technology to achieve speed, perfect design and durability while adhering to the Australian E-bike roads requirements (Leih& Teece, 2014).

• Place-Stealth electric’s products are available online on their website whereclients can access a wide range of products, purchase them and are delivered to their desired location (Solomon et al 2014).

• Promotion- Stealth electric bikes brand offers a wide range of promotions to itsclients such as discounts vouchers, wearable gears such as gloves and accessories such as smart watches and so on (Leih& Teece, 2014).

Competitors Analysis in Australia

• It is no secret that there is a growing appetite for E-bikes in Australia due to the manage advantages related to the product. This has created an increasing demand that attracts emerging and large firms in the market.

• According to a recent study by Grenum (2017), there are over 50 brands of E-bikes local and international which has increased rivalry in the market. However, the survey further shows that Aussies have a strong liking to Stealth electric bikes.

• The 5% blow to e-bike imports in Australia created a strong basis for local firms such as Stealth E-bikes, Reef-Ebikes and Dyson E-bikes to prevail (David ,2018)

Competitors Analysis for South Africa

• South Africa is a major powerhouse economy in the African continent which means conquering the markets will create ease in growth and development of Stealth E-bikes. There are two major E-bike brands that are currently making waves in the country, they are Ezee and E-bike south Africa (Michael ,2018)

• E zee has been around for close to a decade acquiring 38% and is responsible for sustaining the market for a while until E-bike south Africa came around in 2010 acquiring 20% of the markets share (Michael ,2018)

• International firms such as Pedego Electric Bikes from the USA have penetrated the market giving Ezee a run for their money

International Marketing Strategy of competitors in South Africa

 

• Pricing-making E-bikes available at affordable prices is crucial for the success inthe market as most of the south African citizens are in the middle class.

 

• Target audience-Ezee and E-bike south Africa are targeting students in campusand colleges which is an efficient, affordable and effective mode of transport for them

 

• Promotion- competitors also offer a wide range of promotions to their clientssuch as discounts vouchers, wearable gears such as gloves and accessories such as smart watches and so on to woo the clients

Market entry strategy for South Africa

• Joint Ventures-Stealth electric could partner with strategic firms in the SouthAfrican market which would create ease of entering the market and dominate it (Yan and Luo,2016)

 

• Buying out-Stealth electric brand could also identify strategic firms and buy themand easily acquiring their marker share therefore allowing growth and development in the long run.

 

• Licensing-This strategy will allow a local retailer who has experience in themarket to sell Stealth electric products on their behalf for a significant fee or they would play a n assembly role in the market

Conclusion

• Stealth E-bikes are known to have one of the best innovation and technology in the products which has gone a long way In stamping a presence in the Australian markets .Therefore with the analysis of the south African market: a major economic power house in the African continent, It will be easy for the firm to enter the foreign market

References

• David R. 2018. E-bikes to attract 5% import tariff. [ONLINE] Available at: https://cyclingtips.com/2018/02/bikes-imported-australia-hit-unexpected-5-tariff/. [Accessed 17 August 2018].

• Fishman, E. and Cherry, C., 2016. E-bikes in the Mainstream: Reviewing a Decade of Research. Transport Reviews, 36(1), pp.72-91.

• 2017. ELECTRIC BIKE BRANDS IN AUSTRALIA. [ONLINE] Available at: https://grenum.com/au/electric-bike-brands/.

• Leih, S., & Teece, D. 2014. Market Entry Strategies.

• Michael D. 2018. Business Tactics[ONLINE] Available at: https://thebusinesstactics.com/456864/global-ebikes-market-2018-us-uk-china-indiabrazil-south-africa-egypt-japan-koria-australia-canada-mexico-france-industry-research-report-till-2023

• Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014. Consumer behavior:Buying, having, and being (Vol. 10). London: Pearson.

• Stealth Electric Bikes. [ONLINE] Available at: https://www.stealthelectricbikes.com/. [Accessed 17 August 2018].

• Yan, A. and Luo, Y., 2016. International Joint Ventures: Theory and Practice: Theory and Practice. Routledge.