Professional Documents
Culture Documents
Branding. Group 7. Final
Branding. Group 7. Final
BRANDING
SECCIÓN YX6A
FINAL ASSIGNMENT
Group 7
UPC 2021-2
GLOSSARY
1
LIST OF CHARTS
2
LIST OF FIGURES
3
1. Analysis of the Situation
● PESTEL Analysis
Chart N°1: Pestel
PESTEL
POLITICAL/LEGAL ECONOMIC
- Due to the pandemic and health crisis, - Increase in sales of bicycles: The online
restrictions were imposed to protect search for bicycles increased. (Gestión, 2020).
people and maintain Covid cases to a - Sales of cycling products, such as bicycles
minimum to which a curfew and a ban on and helmets, increased. (Gestión, 2020).
driving took action, which encouraged the - The highest demand has been found for
use of different means of transportation bicycles that oscillate between S /. 900 and S
such as bicycles. (Gob, 2021). /. 1,500, although an increase in demand for
- Adaptation of streets to cyclists: high-end bicycles is also anticipated.
According to projections of the (How2Go ,2021).
Municipality of Lima, it is planned to - The price was raised: Demand for high-end
enable 374 kilometers of interconnected bicycles is expected to increase, raising their
bicycle lanes in 29 districts of the capital price by 2021.
before the culmination of the current
management. (Gestión, 2020).
- Also, emergent and temporary bicycle
lanes will be implemented on different
roads and in other avenues of the city, as
well as more parking spaces for bicycles,
said the Municipality of Lima. (Gestión,
2020).
- Additionally, sanctions have been
implemented against the cyclists
themselves, ranging from 22 to 352 soles,
depending on the transgression. Fines will
be issued if you drive while intoxicated, or
at high speeds, or if the bicycle does not
have brakes, lights, or bells. In addition,
they will also be fined if they drive on the
sidewalk. (El Comercio, 2021).
“Continue””
4
“Continuation”
PESTEL
TECHNOLOGICAL ENVIRONMENTAL
SOCIAL
- As people stopped using the main means of transportation such as buses or cars and started to
use bicycles, motorcycles, among others; Peru became the ninth country in the world to declare the
bicycle as a means of transport to stop contagion. (El Comercio, 2021).
- The percentage of the population that transport by bicycle within the urban environment has gone
from less than 1% to 4%. (How2Go ,2021).
- Consumer preferences: The majority of consumers are men between 18 and 34; in addition, it is
noted that they have a preference for aluminum mountain bikes. (Gestión, 2020).
Conclusion:
In conclusion, we can observe that as a consequence of the pandemic, the use of bicycles as a
means of transportation in daily life has increased in Peru. As a result, the sale of bicycles has
increased in the market; However, cyclists now have to take into account the new bicycling
regulations that have been placed in action. Nevertheless, it is not all bad since there are new
benefits such as an increased number of roads and parking spaces destined for bikes only.
Bikes have become one of the main means of transportation and everyday cities are making
more accommodations for these growing habits. Therefore, under these circumstances, it is
safe to assume that the category will be growing even more in the near future and many new
opportunities have presented themselves.
5
● Brand’s strengths and weaknesses
Strengths Weaknesses
Box bike is a Peruvian brand with high recognition and market share. They have an extended
warranty policy that really appeals to their audience and they count with over 15 years of
knowledge of the Peruvian market. All these features make it a strong rival locally to big
brands like oxford and trek. Although, it doesn't have a big social media presence, a place
where they should take advantage to extend their reach. Finally, they don't really appeal to
high-end bike customers.
6
● Brand’s target audience
7
Regarding Demographic and Psychographic
Figure 15 shows a standard model from Box Bike that appeals to its core audience. As their
name implies, they sell bikes with “boxes'' or baskets for audiences that want that functional
feature implanted in their bike. It also appeals to their core niche that likes vintage-style
bicycles.
Regarding Behavioral
Figure 15 shows a statement by the brand where it shows the conduct of their audience and
that “there's nothing better than traveling on two wheels”. This shows the behavioral conduct
of their audience and how they like traveling across the city with a bike instead of using
normal means of transportation.
8
Chart N°4: Box Bike’s Secondary Target
Secondary target group: Box Bike
We consider them as the secondary target group since the brand does not direct its advertising
efforts to this age group; however, parents are the ones who encourage their teenagers or
young children to ride a bicycle to have fun and, also, exercise. In this way, they are the ones
who make the purchase of the product. They also enjoy going for a family bike ride and
spending the afternoon like this.
9
● Brand Funnel
➔ From the results obtained in the survey, 57% of our primary group were aware
of Box Bike, which means more than a half have heard about this brand.
➔ In the same way, 53% of our primary group were familiar with Box Bike; they
have seen it before or have done research.
➔ As it is shown above in the brand funnel figure, 27% have bought Box Bike in
recent years.
➔ Also, 24% of people have bought this brand more than once before.
➔ Finally, 20% of the primary group seems to be loyal because they chose Box
Bike as the brand which they would never choose to replace.
On the other hand, we estimated the brand funnel ratios to find the percent conversion from
one stage of the funnel to the next one. To create these ratios, we divided the absolute
numbers by the number above it on the funnel. From what we got, we could look for the
lowest brand funnel ratios for finding our bottleneck. In this case, we can define that as the
“Like it” model, because we can interpret that the consumers have a basic idea of what Box
Bike stands for, but they do not feel a connection with it. They do not see it as different and
unique, more like ordinary. Also, the “like it” brands have sales funnels that are solid from
the beginning but start being narrow at the purchase stage, just as Box Bike (27% absolute
score). What its market indicators portray is that the brand presents a low conversion rate of
sales and if it is not advertised, sales could fall off dramatically. Also, they have low loyalty,
strong private label share and probably a very low ROI (Return on investment).
10
2. New Target
According to the Pestel analysis, we can mention that due to the COVID-19 pandemic
and the measures that were taken in the country to avoid the increase of contagions,
the lifestyle of all people changed radically; one of the measures that fostered this
great change was the imposition of the curfew and the prohibition of driving that was
established in different stages throughout the pandemic, both encouraged the use of
different means of transportation within the people, and the one that was most used
was the bicycle. This caused that little by little people were acquiring new bicycles
and products with cycling purposes, increasing their sales in the market.
Taking this into account, it was also observed that the main consumers of cycling
products were men and women between 18 and 34 years old, these people began to
use this means of transportation more frequently, either to go to work, shopping, going
out with friends or moving to a nearby place, in addition to using it to stay active
within the quarantine.
On the other hand, we can highlight that these consumers like to try new things and
keep updated on the products that come to market, that is why when using bicycles in
their daily lives, they began to look for new ways to transport with them, making their
use more dynamic and simple for them, so they began to acquire electric bicycles, this
can be demonstrated in the increase in the number of sales that they witness in the
market.
In addition, we can classify this target as people who like to take care of the
environment, being eco-friendly, since they are motivated to use this means of
transportation considering that they are contributing to the conservation of the
environment since it produces much less carbon dioxide than conventional cars. (El
Comercio, 2020). In addition to occupying less space on public roads, it also reduces
noise pollution, having a positive impact compared to motorized vehicles. (El
Peruano, 2020).
Finally, we can mention that these people like to take care of their wellbeing, being
this the main incentive why they chose to use bicycles to mobilize during the
pandemic since the main means of transportation such as buses, cabs, etc; have been
established as one of the main sources of COVID-19 contagion.
From the aforementioned we can conclude that there is a slight change in terms of the
new target, with respect to demographic, behavioral and psychographic:
11
Chart N°5: Box Bike’s New Target
Primary target group: Box Bike
12
3. Brand Strategy
In this section, we are going to show our smart objectives regarding our brand equity
proposal, a new positioning statement and our brand brief for the relaunch. 4
objectives will be listed below.
○ Smart Objectives
13
○ New Brand Equity Proposal
First of all, we are going to show our old Keller model with the results we got
from our quantitative evaluation:
14
Second, we are going to show the new Keller model based on what we investigated in
our Pestel and Foda analysis:
The changes we have made were the following: loyalty, high consideration, high-quality
bike parts, medium price, medium variety, good awareness, and good recognition. This is
due to the data obtained according to the pestel and swot analysis where it is indicated that
now the consumer is sensitive to the price and they look for bicycles totally eco friendly, In
other words, they prefer electronic bicycles, since they are quite concerned about the
environment. (Go to chart N°1) Likewise, we seek to improve the perception by the target
towards the brand and therefore seek to be with good awareness and recognition. In addition,
regarding the price, we decided to keep it as "medium", since if we reduce our prices, the
perceived quality may also decrease, since these two aspects are linked in a certain way; also,
according to pestel’s data, sales in bikes have been increasing (Go to chart N°1).
In the same way, according to the market environment and demands, consumers' bikes are
totally committed to using as a means of transportation for their bikes 90% of the time, that is
why we change from “community” to “loyalty” because they are loyal to ride and also to
taking care of the environment. That is how we consider they would love our brand because
of our newly developed brand identity and communication. As well, we consider that the
15
“High Consideration” is the most important change, because as a brand we depend on what
people say about us and how they take us into account, and if, as we expected, we get a high
consideration, thus our consumers will eventually begin to increase more and they are will
recommend Box Bike to other bikers and son. That is how a “loyalty” face in the future will
become true. Finally, all the aforementioned goes according to the objectives set out above.
○ Brand Brief
Value Proposition The best alternative for eco-friendly and stylish bikes to be
mindful of the environment.
16
Key Competitors ● Monark
- It has nearly 70 years of innovating in the
Peruvian market and the brand promotes a
healthy and sustainable lifestyle.
● Ecoride
- Consolidated as a pioneer brand in this sector,
arriving with enthusiasm and many fresh
proposals to Lima, where it was very well
received and has achieved the trust of more
than 3,000 users.
● Xiaomi
- Recognized brand of mobile devices with a
high level of recognition and high level of
innovation. Its forte is folding electric bikes
designed for the city
Products ● Bikes
● Electric Bikes
● Bike Accessories
17
4. Brand Identity
After having presented the brand strategy, which shows the new business objectives,
the new positioning to work, and finally, the new value proposition of the brand,
exhibited in the Keller Model, the new identity will be presented made for Box Bike.
In order to begin to expose this section, in which the new brand identity will be
presented, we will show the new Kapferer Model, which was used as the principle and
justification for the changes made for the benefit of the bicycle brand, Box Bike.
First of all, we are going to show our old Kapferer's model with the results we got
from our quantitative evaluation:
18
Second, we are going to show the new Kapferer's model based on what we investigated in our
Pestel and Foda analysis:
The changes made are due to the information collected, after the investigation that was done
previously. In this, new data were obtained on the Box Bike consumer, on consumption and
perspective towards this brand. It is worth mentioning that the most noticeable changes to
consider are the link between the brand and the eco-friendly and vintage characteristics; in
addition, to maintain its modern, practical and fun style. In addition to this, the information
presented in PESTEL and the SWOT is considered, since they are relevant data to take into
account, about the brand, its consumer and the category of this product.
These changes include different aspects, not only related to the visual image of the brand but
also to aspects related to its functionality and quality of Box Bike. Some of these changes
were the choice of price, since consumers seek to pay an average price; a vision much more
modern, young and involved with the environment. Despite demanding an average price, they
ask that the quality and durability of the products not be affected by it, thus seeking to
maintain a close and friendly relationship with the brand. In addition, we consider that the
greatest change is perceived in “Reflection”, because it is in the category where the most
important characteristics for the public have been added and how they seek to reflect on the
brands they consume, as in this case with Box Bike . Similarly, a slight change was evidenced
in the "Personality" and "Self-Image" categories, in which one characteristic was included
respectively, with the aim of bringing the new identity of the brand even closer to the desire
or search for the consumer.
19
● New Identity Visual Guidelines
Introducing the new Brand Identity Manual, it can be mentioned that it includes
different components such as the new logo, colors and fonts to be used; in addition to
the new Corporate Identity, Points of Sale and Advertising.
20
As mentioned above, brand identity has entered the territory of eco-friendly and vintage, so it
was decided that the appropriate colors to use would be green and blue, and some of their
shades. In the same way, and in relation to the new preferences of the public, it was decided
to provide a much more modern image to Box Bike, so the elements used will be minimalist
and concise.
21
Figure N°12: Brand Identity Positives and Negatives
Regarding the new selected fonts, it was decided to use them because they are related to the
new personality of the brand. In this way, they contribute to enrich the new positioning that
Box Bike seeks to show.
22
Figure N°14: Brand Identity Secondary Font
23
Figure N°16: Brand Identity Stationery (Business Card)
24
Figure N°18: Brand Identity Stationery (Stickers)
25
Figure N°20: Brand Identity Enforcement (Shopping Bag - two models)
26
Figure N°22: Brand Identity Enforcement (Water Bottle)
27
Figure N°24: Brand Identity Enforcement (Hanging T-Shirts)
28
Figure N°26: Brand Advertising Cover
Box Bike has a target audience that seeks modernity, youth and a practical style. Therefore, in
the new brand identity, a graphic line with 4 specific concepts will be handled: product photo,
lifestyle, support and model.
29
Figure N°28: Brand Identity Advertising (Post Facebook)
30
Figure N°30: Brand Identity Advertising (View of Flat Devices)
31
5. Brand Communication
Brand Manifesto:
We are the first generation to feel the effects of climate change and the last one that
can do something about it. Hope is not just about sitting around waiting for a better
future, it's about reaching for the stars and grasping the future we want. Just as vintage
came back, so should a green world do too. We are the future, we are Box Bike.
32
● Touchpoints
➢ TV
■ The objective is to showcase the relaunching of the brand and
promote our new campaign.
■ Interviews about our brand
■ 30 second ad that will run for a total of 8 weeks during a period
of 4 months.
● ATV
● Latina
● Canal N
● América TV
● Movistar TV
➢ Radio
■ The objective is to generate brand awareness and promote our
ideals
■ 15 second ad that will run for a total of 8 weeks
● A continuous run of 4 weeks
● Remainder spread out evenly around the remaining time
frame of the campaign
○ Studio 92
○ Onda Cero
○ Radio Corazón
○ Oasis
○ RPP
■ Ads in front of the Mall Bike Parking Lots in all Real Plazas of
Lima, Jockey Plaza, Parque Kennedy, and Larcomar
■ Touchpoint is only used by people of our target and segment.
Amazing place to promote our brand.
➢ Outdoor Panels
■ Our target is known for already owning and using a bike. Most
active users need to at least visit a bike shop every two months
because of worn-out breaks, flat tires, etc. This is an excellent
place where a recommendation and our presence can increase
brand equity.
33
■ Small pamphlets
➢ Social Media
■ Ad mix across Instagram, Facebook, Tik Tok, Twitter, and
Youtube
■ This medium is used to generate engagement with our target
through reels, TikTok, and social media posts.
■ We plan to create a community through this medium.
➢ E-Commerce
■ Our target is known for using online tools for showrooming,
webrooming, or just plain old ordering online. Inside this
touchpoint, we plan to launch ads that will incentivize people to
check out our brand and model. Also generates awareness
● Linio
● OXL
● Facebook Marketplace
● Ripley
● Oechsle
34
6. Conclusion
35
7. Bibliography
Business Empresarial (S.f.). Oxford Store amplió su portafolio de bicicletas con las
marcas Cannondale, GT y Mongoose para Chile, Perú y Bolivia. Recovered
from:
http://www.businessempresarial.com.pe/oxford-peru-inaugura-su-primera-tienda
-en-lima/ [Consultation: September 18, 2021]
36
El Comercio. (2021). Pedalear contra la pandemia. Recovered from:
https://especiales.elcomercio.pe/?q=especiales/pedalear-contra-la-pandemia-ecp
m/index.html [Consultation: September 18, 2021]
37
https://gestion.pe/economia/pandemia-del-covid-19-dispara-la-demanda-por-bic
icletas-y-scooters-electricos-segun-mercado-libre-nndc-noticia/?ref=gesr
[Consultation: September 18, 2021]
Kanter, L. (2020). Inside the Company Trying to Solve the Global Bicycle Shortage.
Marker. Recuperado de:
https://marker.medium.com/inside-the-company-trying-to-solve-the-global-bicycle-sh
ortage-eae6849a9f3b [Consultation: September 18, 2021]
38
-bicentenario-ministerio-del-ambiente-atmp/ [Consultation: September 18,
2021]
PerúRetail (2020). Perú: Oxford abre nueva tienda en medio del boom de la venta
de bicicletas. Recovered from:
https://www.peru-retail.com/peru-oxford-nueva-tienda-boom-venta-de-bicicleta
s/ [Consultation: September 18, 2021]
39
Specialized Bicycles Perú. Instagram Recovered from:
https://www.instagram.com/specializedperu/?hl=es [Consultation: September
18, 2021]
40