Business Plan (Teamwork) BZC971
呂信儒 493920261 陳柏翰 496230112 林怡彤 495032379
許儷齡 495031210 林玉芳 495031600 張婕希 495032240
Folding
bike
Summary
As the increasing of oil price and unstable economy, and the decreasing of
parking lot and living space, folding bike seems to be a trend in the market. It is
saving energy sources and money. And protecting the earth, and making the
environment better.
Folding Bike is a lifestyle of going and being human — transportation solutions
for your life that are practical, affordable and fun. Our exciting line of folding
bicycles is performance minded with an eye towards economy. We've packed in as
much as we could into our folding bikes at a price to let everyone experience the joys
of Citizenship.
Folding bicycles are not specialty bikes, they're bikes with a amazing bonus –
portability. Citizen Bike offers a great bicycle in a small, more versatile package. Folding
bikes are ideal for storage and travel. Our foldup bikes are perfect for your RV, truck, boat
and airplane. And also to just enjoy the amazing convenience and versatility of folding
bikes for every day and every ride.
Vision
Because of the folding bike. Now the bicycle market is no longer traditional in
the past. bicycle has change a lot; its market need, growing potential, sale quantity,
and sharing rate are more steadily. And its price is not so expensive. We hope that we
can achieve our product in market need, growing potential, sale quantity, and sharing
rate are high; yet it price is low. Our target market and customers are not only in
Taiwan but also in the whole global. We are going to positioning our brand and
product in the international market for high-level brand.
Market Analysis
The overall market
Now,
the
folding
bike
has
already
gradually substituted
with
the
traditional-bicycle in the market. As the increasing of oil price and unstable economy,
and the decreasing of parking lot and living space, folding bike seems to be a trend in
the market. The market importance of folding bike are saving energy sources and
money, protecting the earth, and making the environment better, etc. But the
difference is that what company can let customers moving, with a suite of services to
face consumers in practice, from the three levels of strategy, support, and service to
meet consumer demand for the needs commitment of the product quality assurance,
the company can get the high acceptability of customers and extend to the most
market.
Changes in the market
Now the bicycle market is no longer traditional in the past. The function of
bicycle should be more advanced at present and in the future. In the past, the bicycle
is merely a bicycle; its market need, growing potential, sale quantity, and sharing rate
are low. Now, bicycle has change a lot; its market need, growing potential, sale
quantity, and sharing rate are more steadily. And its price is not so expensive. We
hope that we can achieve our product in market need, growing potential, sale quantity,
and sharing rate are high; yet it price is low.
Market segments
Every type of customers is all our entire service subjects. Depending on different
characteristics, such as age, gender, personality, and living style, we develop different
kind of folding bike to attract and satisfy the different clusters.
Target market and customers
Our target market and customers are not only in Taiwan but also in the whole
global. Expect to enter international stage, we positioning our brand and product in
the international market for high-level brand. Based on consideration of all aspects of
competitiveness, we fast the pace of overseas distribution letting our product favored
by overseas markets. In addition, in order to enter the international market, have to
rely on the use of the most understanding of the situation of local talents in the
overseas market to assist in the success of brands opening up overseas markets. In
order to promote the work of international brand, we running a global perspective,
sharing with members of the brand experience, and hoping to help more Taiwan
brands onto the international stage.
Customer characteristics
Customers may want to save money and time, avoid be stolen, share riding
pleasure with friends or family, like challenges, and do not like too much trouble.
Moreover, they may like doing exercise so that beneficial to health.
Customer needs and buying decisions
At present, many people rent out or have no enough space, so having an ideal
folding bike to transport can make their life more convenient. There is no doubt that
low price and high function are what customer first buying decisions. But high
security and portability are the first considerations to customers. Also, customers
often take climbing performance, the convenience of using transportation to go out,
riding distance, folding up small and light, moderate price, and good warranty into
considerations. Besides, can fold quickly, easily good collection, with a
variable-speed or electric function, complete after-sales service, and adhere the
quality and taste to the product are important to customers’ buying decisions, too.
Competitive Analysis
Industry overview
The industry’s high point, in terms of unit sales, was the so-called "bike boom"
in the 1970s. The boom ended suddenly when the industry reached a rapid saturation
point and did not have breadth of product choices to sustain sales levels.
Today, the industry has a much stronger foundation, with an estimated 2,000
companies involved in manufacturing and distributing cycling products to retailers,
and approximately 100 different bicycle brand names to choose from. A wider variety
of product is being sold to a wider range of consumers than ever before. Since the
"boom," no part of the bicycle has remained unchanged, with fundamental
improvements in design and materials being the norm throughout the industry.
Today’s quality bicycles are more comfortable than ever before, the components
more function-specific and reliable, and new and exciting features are introduced
regularly. This allows professional retailers many options to match the right bike to
each consumer — male or female, big or little, frequent or infrequent rider,
status-conscious or not.
Changes in the industries
There’s no clear route to cheating industrial death. Those companies that have
survived technological challenges have in common some combination of
perseverance, creativity, versatility and luck. Their precise strategies vary. Some
made sweeping changes, and abandoned their original products entirely; others were
able to endure by changing little but their marketing.
1.
Small retailers are a major force in the bicycle business, accounting for more
than half of the $3.5 billion in annual sales. But competition from discount stores and
mass retailers is forcing many independent dealers to rethink the way they do
business.
Around 6,600 specialty bicycle dealers-most of them very small
businesses-handle most of the higher-quality bicycles, those carrying price tags into
the thousands of dollars.
Discount stores and other mass merchants sell far more units but at much lower
prices.
2.
China Tax Change Will Hardly Affect Prices
CHANGHUA, Taiwan (BRAIN)—China’s decision to give some tax relief to
exporters will have little to no effect on bicycle prices, according to Bob Margevicius,
Specialized’s vice president and a sourcing expert.
“When you parse it down to what the net effect is, it’s tiny,” Margevicius said
Friday.Bicycle Retailer reported Thursday that the Chinese government is increasing
the export tax rebate on Chinese-made bicycles from 9 to between 11 and 14 percent.
But Margevicius pointed out that the increase amounts to only 2 percentage
points, to 11 percent from 9 percent, for whole bicycles and almost all parts and
accessories. The exception is tires and inner tubes.
The story noted that the rebate applies only to locally made components, not to
the value of the entire bicycle. For example, a China-made bicycle that consists of 30
percent local content, the rebate would amount to only 0.6 percent of the total value.
The change, effective Dec. 1, is part of a sweeping effort by the Chinese government
to bolster its slowing export industries. The government awarded tax relief to some
3,700 products, accounting for more than one fourth of its exports.
Primary competitors
MERIDA Bikes
The second largest bicycle producer in the world with well established
production techniques offering the very best quality and value for money.
The Merida Bicycle Factory was founded in 1972 and the Merida bike brand
launched in 1986. They have won the Merida World Championships in 2003, 2004 &
2005 as well as Merida Olympic gold and silver medal winners in 2004. If you are
looking for a REALLY good bike than you cant get better than Merida bikes, they are
great value for money and offer a complete range to chose from.
"Merida is one of the biggest players in the bike industry"
This manufacturer produces for many brands including Specialized and Carrera
to name but a few. Merida make quality bikes ranges include mountain bikes,
trekking bikes, road bikes, kids bikes and more. Merida bike's prices range
from ?49 up to many ?00.00s.
Accell Group N.V.
Accell Group is much more than a bicycle peddler. The company designs,
produces, and markets a variety of bicycles, parts, and exercise equipment through a
number of brand name subsidiaries. Targeting the mid to upper segments of the riding
cognoscenti, the company's products include children's bikes, specialty touring and
racing bikes, stationary exercise cycles, and various parts and accessories....
Bitech, Inc.
Lance Armstrong to the contrary, Bitech would assert that it is about the bike.
Doing business as Performance, Inc. and also known as Performance Bicycle and
Performance Bike Shop, Bitech sells bicycles, bike parts, bicycling apparel,
nutritional supplements, and accessories through stores in 15 states and through its
Web site....
Columbia Manufacturing, Inc.
Bicyclists have been sharing the road with Columbia for years.
ColumbiaManufacturing has been making bicycles for nearly 150 years. Models
include the Sienna, Thrust, and Impulse mountain bikes, the Intruder boys freestyle
bike, and the Comfort and Classic cruiser bikes.
Pacific Cycle, Inc.
Don't tread on Pacific Cycle. Founded in 1983, it designs and markets bicycles
and scooters under the DYNO, GT, InSTEP, Mongoose, Murray, Pacific Outdoors,
Powerlite, Roadmaster, and Schwinn brands. It's also a top maker of bicycle helmets
in the US. Its bikes are sold by mass merchandisers (Target, Wal-Mart), sporting
goods chains (Dick's, The Sports Authority), and independent suppliers.
Cannondale Bicycle Corporation
Cannondale's lightweight products are heavyweights in the high-performance
bicycle market. It is a leading maker of mountain, road racing, multisport, recreational,
and specialty bicycles, most of them with aluminum frames. Cannondale also makes
bicycle-related items, such as apparel, accessories, and suspension forks....
Easton-Bell Sports, Inc.
Afraid your favorite athlete might take a knockin' on the noggin? Easton-Bell
Sports (EBS) products can help soften the blow. A leading helmet maker, EBS caters
to baseball, softball, football, hockey, cycling, and auto racing markets, as well as
snow and motorcycle sports....
Giant Manufacturing Co., Ltd.
Giant Manufacturing has peddled its way to the top of the bicycle industry. In 1980 it
became the largest bicycle maker in Taiwan; today Giant Manufacturing is the largest
bicycle maker in the world. It manufactures bikes for competition, exercise, recreation, and
transportation....
Huffy Corporation
Huffy has built a longtime business peddling bikes and other wheeled products to
children. The company is best known for its all-purpose bikes, although its Micro
Scooters and Playcenters play a big role in its products portfolio. Its Huffy, Micro,
and Royce Union bikes include kids' bikes and tricycles, comfort cruisers, mountain
bikes, and BMX racing bikes (which are bought from makers in Asia)....
Specialized Bicycle Components, Inc.
Specialized Bicycle Components didn't set out to make a museum piece, but the
company's original Stumpjumper (the first mass-produced mountain bike) is now
permanently parked inside the Smithsonian Institution. The 1981 introduction of the
Stumpjumper established the company as a top-seller in bicycle shops, where it ranks
up with other big manufacturers such as Trek, for high-end cycles....
SRAM Corporation
SRAM keeps the wheels of change turning. The company makes and sells
bicycle shifters, derailleurs, brakes, gear hubs, chains, rear shocks, and suspension
accessories. Founded in Chicago in 1987, the company holds well over 90 patents for
its innovative technologies....
Trek Bicycle Corporation
Lance Armstrong's speedy treks through France have been good news for Trek
Bicycle. The company is a top maker of high-end bikes, which it sells through
independent specialty bike shops worldwide. Trek makes mountain, road, children's,
tandem, police, and BMX bikes....
Dahon
Dahon is a manufacturer of folding bicycles founded by David Hon, a former
physicist, in 1982 — with headquarters in Los Angeles, California , an assembly
factory in Taiwan and other factories in Macau and China.
Several Dahon bicycles use a patented single hinge frame design, whereby the
handlebar folds down and the frame hinge swings to the left, leaving the handlebar
inside. Biggest sellers are the models with 16 or 20 inch wheels, but models are
available with wheels from 12 to 27 inches. Models are available with derailleur or
hub gear shifter, or both or none.
Dahon factories also make folding bicycles for sale under other brand names
including Ridgeback (bicycles) and the affiliated Yeah Bicycles.
Birdy
The Birdy is a folding bicycle designed by Riese und Müller. As of 2007 over
70,000 have been sold.
Released in 1995, it was the first fully suspended folding bike. The ride is
regarded as more sporty than the Brompton, thanks in part to a stiff single-piece
aluminium frame with no hinge and road bike rider geometry. Some prefer its stiff
suspended ride and rapid acceleration to that of a full sized bike.
Bike Friday
Bike Friday is a brand of folding bicycle made by Green Gear Cycling, Inc. of
Eugene, Oregon. (Cyclists often refer informally to the company itself as "Bike
Friday" or the "Bike Friday company."). It is a well-known brand in travel bicycles
made in the United States, largely through word of mouth.
Opportunities
1. Due to the recession, more and more employees ride their bikes to work instead of
driving. And the folding bicycle is right a good instrument for them.
2. The boom of cycling around Taiwan contributes to the purchase of bike.
3. Riding bike now becomes a manner to spend leisure time on weekends.
4. The market hasn’t got to the saturation point.
Threats and risks
1. Giant and Merida have large part of the market in Taiwan.
2. The movement of folding bicycle is unsteady.
Strategy
Key competitive capabilities
Folding bike can be fold up and it can not occupy the space, you can put it inside
your house to avoid to be stolen. It is convenience to everyone not only students but
also office works. We can even put it in the luggage, and it also can carry into MRT
and trains. If we went travel around Taiwan, it may be the best choice for us to ride it.
By response in reducing carbon activities, people try to substitute motorcycles and
cars for folding bike because of its handy function. Folding bike is advantageous to
environment protected.
Key competitive weaknesses
Because of folding bike can fold up to small-scale, it may weak in the structure,
it can’t ride in the long way. And the joints of the folding bikes are so complex that
we should always have to maintain it to avert it become rusty.
Folding bikes are a little expensive comparing with formal bikes, so it is not
everyone can afford it.
Implementing strategy
We can using advertisements to publicize the capabilities of riding folding bike.
Especially give some activities in the race by folding bike.
For instances, we hold a
race to encourage people join it by folding bike, make more and more people try to
contact with it. And it is also catch many stranger’s eyes in the folding bike.
To give another way, we can also made some posters on promoting “The
activities in reducing carbon and retrenching source”.
Try to emphasize the
convenience which folding bikes are and create many kinds of bikes’ price that
everyone can effort it. The product services is also an important way to attract
people purchasing it and raise up the buying desire.
Products / Services
Products
Tri-BZC
Bike Weight: 10 kgs
Frame: 7000 Series Aluminum
Drive Train :Kevlar Greaseless Belt Drive (up to 50,000 miles)
Wheels: Alloy 16" Rim
Brakes: Disc Brakes
Speeds: Single Speed
Folded Size: 45" x 20" x 9"(114cm x 51cm x 23cm)
Grip: Gel
Bottom Bracket: Welded
Luggage Rack: Plastic or Alloy new option
Weight Limit: 100 kgs
Height Limit: 153cm – 193cm
BZC-A1
Frame 20" folding AL 7005 Alloy
Fork High-tensile steel
Headset Threaded 1"
Rims Alloy 20"
Hubs Alloy nutted 28°
Tires Kenda 20x1.75
Spokes 14G Stainless 28°
Front Derailleur
N/A
Rear Derailleur Shimano TY18SS
Shifters Twist, 6 Speed
Chain
KMC Z51
Crankset Alloy w/40T & Chainguard
Bottom Bracket
VP-B32
Freewheel Shimano 11-28, 6 Speed
Pedals Foldable right side
Seatpost CP 400mm
Saddle BZC Comfort
Handlebar 600W x 100H, Black
Stem Steel, Black
Grips Krayton
Brake Levers Alloy
Brakes Alloy Linear Pull
Color Liquid Chrome
Frame Size 1-size
Extras Bell, fenders, kickstand, carrier
Services
Welcome to the BZC Folding Bike Service center. Here you'll find answers to
your technical questions, help with packing your Folding bicycle, and information on
getting things fixed.
Q: What is the BZC warranty policy?
A: The BZC does not warranty frames, forks or parts damaged from
use, misuse, crashing, racing, jumping, stunt riding, improper
maintenance, neglect etc. For more information, please read BZC
Warranty Policy
If you're a consumer and have a warranty question, take your bicycle
and sales receipt to your authorized BZC bicycle dealer for evaluation.
If you're a BZC Bicycle Dealer and have a bicycle warranty question,
please complete our
on-line bicycle warranty form
If you're a BZC Parts Dealer and have an issue with a Parts Order
(missing, damage or incorrect merchandise), please complete our
on-line-line parts order descrepancy form
Q: I lost my /never received an owner’s manual. Can I get one
on-line?
A: Yes, we have a PDF version of the BZC Owners Manual now
available on-line.
Click here to download
Q: I have an older BZC bicycle and would like more information
about it. Where can I spend endless hours researching history
about my great BZC bicycle?
Q: I want to purchase a bicycle on eBay, but I would like to
know more about it. What can I do?
A: E-mail the seller. The seller, not BZC, has intimate knowledge
of the bicycle he is selling. We may have made the bicycle
originally, but we don't know the size, condition, mileage, year it was
purchased, if it was ridden off a cliff, if it was in Hurricane Katrina, if
it's stolen, if it was once ridden by Paris Hilton, etc. Please do not call,
we cannot help.
Compare the bicycle you're looking at with a similar bicycle for
comparison. One point to mention, proper fit is crucial. As with
shoes--if they don't fit--you'll never wear them.
Q: How do I set-up or adjust my suspension bicycle? Can I
contact the shock manufacturer directly?
A: BZC recommends checking with the suspension manufacturer for
the best and latest set-up and maintenance information.
Q: How can I fold my “Folding” bicycle?
A: Folding bicycles are relatively simple to fold, Click here for PDF
instructions.
A: I need images and/or logos for my website or
advertisement.
Q: You may right click on any image on this site and place on your
shops website or in print ad. The links to the logos are on this page.
Just to the right.
Marketing & Sales
Marketing Strategy
There are two key elements which can help our company to stay sustainable
development in the society:
The first one is that we sell our product only through the virtual channel. Instead
of communicating our customers by front shops, we choice to talk with them though
the internet. In this way, we can help our company to save more cost from the
physical shop stores. So, we can achieve a sustainable competitive advantage on the
pricing.
The second one is that we will hold more of the routine folding bike exhibition
and activities to connect our products with our customers. People who want to know
our product can just search on the net or come to join our activities. This is our niche
market which is different from the present market to compete on the price. We are
going to use the way to bring more customers, enforcing our exposure rate, helping
our customers to have more activities with others and creating the extra profits from
the product. This strategy can be seen as to back up the drawbacks from our first
marketing strategy. However, we highly value the profits from our customers after
they buy our products and we take seriously on the relationships between our products
with our customers. We always value customer satisfaction to be the way that our
company can be sustainable development.
Sales Tactics
Since we highly recommend our customers to buy our product after they satisfied
with it.
And, we emphasize on the utility for our customers after their
consumption. We are not going to give every effort to tell how good of our product is.
Instead of promoting our products, we choice to let our customers to experience it and
join our activities. Through those hidden commercial, we help them to recognize our
product. We tell them to know our product first and then let them have time to think
about it whether this product suit for them. Instead of finding our consumers, we try
to let them go to find us. However, we still have some promotion plans for our
products such as to sale our products combing with our activities and pay in advance
plans. In summary, we are not actively to do it but we are still making effort on it in
other ways.
Advertising/ Promotions
Although the above have already mentioned some of our promotion plans, here
are some more examples about how we are going to do for the future plans:
Retune work
＊Through the printed media
＊Routine activities ( Cycling around the island / yr )
Special events
＊Folding bicycles experience riding
＊Quick folding activities
＊Traditional festivals biking
＊Biking group dating activities
Other activities
＊Sponsoring non-profit organization
In summary, our company sales not only the bicycle but also those activities.
Through those activities, we are doing the advertisement. We want to give an
impression for our customers that we are not going to sell our products simply for the
profit or making money. We do need money, of course, but we just make it in a
reasonable way. We are going to let them enjoy our activities events and to give them
to haves a more convenient lifestyle. So, we are selling the entertainment and our
business spirit which is “Life more easy, Life more healthy”. And, that's our
marketing strategy.