RIDE ME

MARKETING PLAN

URANBILEG BATSAIKHAN
2022029452

TMKT601 Marketing Management

Unit Coordinator: Dr Hamin Hamin
EXECUTIVE SUMMARY

"BUDGET FRIENDLY,
BODY CHARGER"

RIDE ME
RIDE ME is a new entrant to the Australian fitness equipment market with a mission to inspire and
empower people to achieve their fitness goals through innovative and high-quality fitness
equipment.

Our RIDE ME bike is a top-notch stationary fitness bike designed to appeal to any age range and
provides health value to its users. Additionally, embedded with smart tech and it’s overall built, users can
easily assemble the product, relocate the product, get online tutorials in the digital screen and health status
monitoring and tracking services.

Our customers are primarily working-class Gen-X (aged 40-54) followed by Millennials (25-39) and
Baby boomers (55-74). We have built bikes such as they provide efficiency and convenience to each target
group. Our competitive advantage is the smart technology embedded and affordable price for the value
offered.

Our marketing objectives are to create and increase brand awareness among the targeted market group
via various channels such as social media, traditional media, and advertising campaigns. In addition, while
boosting brand presence, the campaigns will also share the benefits of the bikes. The final objective is to
create customer engagement and an online presence.

Our long-term goal is to be a brand that provides a wide range of products and services to improve
customer health and fitness and become the best fitness equipment brand in all of Australia. To achieve
this vision, we will utilize online platforms such as social media, blogs, YouTube, and websites to attract
customers and maintain a long-lasting relationship with them.

We are excited to commence our pre-launch campaigns in August 2023, focusing on traditional media
and social media. The bikes will be launched in November while targeting sales during Christmas and
New Year's festive seasons. The bikes will be launched in three cities Brisbane, Sydney, and Melbourne.
We expect to reach the break-even point before the end of 2024, and we will consider 2024 as our starting
year. We expect to be generating profit from 2025 and the sales to increase by at least 10% each year. In
contrast, we predict our cost will also increase by at least 5% each year.
TABLE OF CONTENTS
1. Current Situation Analysis 4
1.1. Market Summary 4
1.1.1. Market Environment and Size 5
1.1.1.1. Geographics 5
1.1.1.2. Demographics 6
1.1.1.3. Behaviour Factors 7
1.1.2. Market Trends 8
1.1.3. Market Needs 9
1.1.4. Market Growth 10
1.2. Competition 13
1.3. SWOT Analysis 14
1.3.1. Strengths 14
1.3.2. Weaknesses 14
1.3.3. Opportunities 15
1.3.4. Threats 15
1.4. Product Offering 16
1.5. Keys to Success 18
1.6. Critical Issues 19
2. Marketing Strategy 20
2.1. Mission 20
2.2. Marketing Objectives 20
2.3. Segmentation 21
2.4. Target Markets 22
2.5. Positioning 24
3. Marketing Program 25
3.1. Product Strategy 25
3.2. Pricing Strategy 28
3.3. Communications and Influence Strategy 30
3.4. Channel Strategy 31
4. Implementation and Marketing Controls 33
4.1. Implementation 33
4.1.1 Financial analysis 34
4.1.1.1 Financial objectives 34
4.1.1.2 Break-Even analysis 34
4.1.1.3 Sales forecast 35
4.1.1.4 Expense forecast 36
4.2. Marketing Organisation 37
4.3. Contingency Planning 38
5. Reference 39
1. CURRENT SITUATION ANALYSIS
1.1 MARKET SUMMARY

In recent years, the Australian market has experienced

The market rapid
now isgrowth
competitive, in
withthe home gym and fitness
presence of international brands like
products market. The primary factor for the growth Nordic
can Track
be accounted for the lifestyle and preferences
and Bowflex as well as local
Australian brands offering a range of

changes brought upon by the COVID pandemic and the increase in health and fitness trends. The
smart gym gears at
various price points.

demand for home workoutInequipment such as treadmills, stationary bikes, weights, and so on has
the recent years, home gym and fitness

increased. Accommodated with online and virtual fitness classes, consumers are shifting towards the
products market has experienced a rapid growth in
the Australian market. The primary factor for the

working out-from-homegrowth
trend becausebroughtof itsby convenience
can be accounted to the lifestyle and
preferences changes upon the COVID (Fitzgerald, 2021).
pandemic and the increase in health and fitness
trends. The demand for home workout equipment
such as treadmills, stationary bikes, weights and so
on has gone up. Accommodated with online and
virtual fitness classes, consumers are shifting towards
the working out from hometrend because of the The market now is competitive,
convenience it provides.
with the presence of international
brands like Nordic Track and
Bowflex, as well as local
Australian brands offering a
range of smart gym gear at
various price points.

In 2021, the gym and fitness equipment market increased by 33%, and it rose for the second year
after declining during the pandemic shutdowns. Consumption is also expected to rise in the coming
years with steady market growth (INDEXBOX, 2022). Due to the continuous innovation and
technological advancements in the fitness product sector and the rise in people prioritizing their
health and fitness as well as wellness, the market is expected to grow even more.

4
1.1.1 MARKET ENVIRONMENT AND SIZE

1.1.1.1 GEOGRAPHICS

In June 2021, the total

population who aged 20-74 years
in Australia was 17,693,618
(Australian Bureau of Statistics,
2021).

Figure 1. Source: Australian Bureau of Statistics, regional population by age and sex, 2021 (Calculation
were made with distribution percentages of each cities to total population of people aged 20-74).

Total persons aged 25-74 who

States Total Population aged 20-74 Capital cities lives in
capital cities

NSW 5,532,838 Sydney 3,645,016

VIC 4,541,410 Melbourne 3,453,453

QLD 3,599,848 Brisbane 1,798,249

SA 1,238,448 Adelaide 966,249

WA 1,893,811 Perth 1,506,061

TAS 392,268 Hobart 172,971

NA 175,390 Darwin 106,690

ACT 319,605 Canberra 317,944

Total 17,693,618 11,966,634

Figure 2. Source: Australian Bureau of Statistics, regional population by age and sex, 2021 (Calculation were
made with distribution percentages of each cities to total population of people aged 20-74).

The majority of the Australian population lives in major cities of Australia such as Sydney,
Melbourne, Brisbane, Adelaide, and so on. Among them, Sydney, Brisbane, and Melbourne have the
highest population density making them ideal locations.

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1.1.1.2 DEMOGRAPHICS

According to ABS, the majority of

Australians aged 20-74 reside in major cities. In
terms of population size, Sydney, Brisbane and
Melbourne are the cities with largest population for
this age group. Sydney makes up for almost 21 %
of the total Australian population, Melbourne
makes up around 19% and Brisbane has around 10
% of the population. (Australian Bureau of
Statistics, 2021). We can say that approximately
50% of our target population reside in these three
Figure 3. Source: Population percentage calculation. Australian Bureau of
major regions and are the ideal location for our Statistics, 2021, Calculated from Figure 2.
market.

According to AusPlay Survey, around 32% of the population has a gym membership. 37.5% of
Australian adults participated in fitness/gym activities during the time period between July 2020 to June
2021 (Clearinghouse for Sport, n.d.).
Among the total population of Australia, our target market consists of Millennials, Gen X and Baby
boomers. A study reports that among gym members, people aged 25 or more workout regularly in the gym
than their younger counterparts with irregular schedules. People prefer online and home workout sessions
rather than attending gym and fitness clubs since the pandemic. (XTEND BARRE, n.d.) This is why we
have chosen people aged 25 and above as our primary target segment.

According to ABS, around

27% of the millennials were
physically active followed by
approximately 45 % of GEN X and
19 % of baby boomers. Among the
target segments, GENX are more
aware of their health and fitness
needs and they are our priority.

Figure 4. Source: ABS- Activities by age group 2022

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1.1.1.2 BEHAVIOUR FACTORS

Baby
Factors Millennials GENX
Boomers

Independent and
More likely to try new Health-conscious people who
practical people who
and unique fitness prioritize fitness and health and
Personality are focused on specific
equipment. value the support and guidance of
fitness goals.
trainers and tutors.

Improving overall
Maintaining physical function and
health and wellness,
Maintaining a healthy preventing injury, improving overall
Motive managing stress and
lifestyle health and wellness, and reducing
maintaining physical
stress.
functions.

They prioritize
convenience, are tech They prioritize
savvy, are welcoming efficiency and workout They value health and wellness,
Lifestyle to new and trendy routines that fit their prefer low impact exercises and easy
things. They also prefer schedule. Prefer to use equipment.
online communities and convenience.
interactions.

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1.1.2 MARKET TRENDS

As with many trends that the pandemic boosted, adoption of personal fitness technology has accelerated
which has also led the gym-members to expect and demand not only new and clean equipment but also the
smart gears. As a result, many gyms and fitness clubs are investing in the smart gym equipment (MAIA
Financial, 2021).

The observed market trends can be categorised as below:

• Increase in health and fitness concerns: People are

becoming more health concerned globally, especially
after the pandemic. The trend for staying fit and healthy
popularised by social media influencers is only getting
stronger every year.

• Rise in tech embedded equipment and their demand:

Technology has improved many industries. It has also
boosted the fitness industry in the recent years. With the
rise in smart gym equipment, the fitness industry is
booming. Study shows that gym members are looking for
smart home-based equipment for their workout routines.
The gym providers and fitness clubs are also investing in
smart gears.

Rise in work from home jobs: The pandemic ensured that most companies would allow their employees to
work from home. With it, there was a rise in workout from home practices. Since people now have their
transport time at hand, they want to utilise it and improve their health and fitness. And most people prefer home
based equipment rather than gyms and clubs.

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1.1.2 MARKET NEED

73.4% of people aged

18-64 years undertook 150
minutes or more of
physical activity in the last
week.
Nearly half (49.4%) of
employed people aged 18-
64 years described their
day at work as mostly
sitting.

Figure 5. Source: Australian Bureau of Statistics, Physical activity 2020-21 financial year

The fitness industry in Australia has a growing demand for:

- Convenient and accessible fitness solutions: This includes online fitness classes, at-home workout
equipment, and wearable technology.

- Personalized fitness experiences: Customers are seeking personalized workout plans and nutrition advice
tailored to their specific goals and needs.

- Innovative and engaging workout experiences: The popularity of unique and immersive workout
experiences, such as virtual reality and boutique studios, continues to increase.

- Technologically advanced fitness equipment: Customers are looking for equipment that is not only
effective but also easy to use and equipped with advanced technology.

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1.1.2 MARKET GROWTH

In order to identify TAM in at

NSW, VIC,
Age generations ratios to total population of each cities addressed capital cities, ABS-regional
QLD
age and sex distribution statistics.
Cities Millennials (%) Generation X (%) Baby boomer (%) Following calculations were made in
Figure 6. data was collected from
ABS-Australian Total persons aged 25-
Sydney 23.8 19.6 19.2
74, 2021. As for the SAM calculation
of market size, we selected people aged
Melbourne 24.3 19.5 18.8
25-74 (Millennials, Gen X, Baby
boomers) and who live in 3 major
Brisbane 22.5 19.7 19.2 capital cities Sydney, Melbourne,
Brisbane.
Figure 6. Source: Australian Bureau of Statistics, Regional population
by age and sex 2021, NSW, VIC, QLD

States Change over previous year (%)

NSW 0.7 Selected major 3

ERP at 30 June 2021
cities' population
VIC 1.0

Sydney 5,259,764
QLD 2.0

Figure 7. Source: Australian Bureau of Melbourne 4,976,157

Statistics, National, state and territory
population June 2022

Brisbane 2,568,927

Figure 8. Source: Australian Bureau of

Statistics, Regional population, 2021

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1.1.2 MARKET GROWTH

According to figures from Statista, the projected volume for the fitness equipment market in Australia
is projected to be around AUD 140.47 billion by 2027. Revenue in the sector amounts to AUD 0.8 billion in
1.1.4 MARKET GROWTH
2023. The market is expected to grow annually by 5.38% (CAGR 2023 – 2027).

The demand for home workout equipment is on the rise, especially since the Covid pandemic. Various
studies report that the annual growth rate for the fitness industry is around 3% till the year 2024. Australians
are reported to spend almost $8.5 billion on fitness and equipment and contribute around $3 billion to the
Australian economy every year. (Australian Fitness Academy, n.d.)

TAM, SAM, SOM summary

TAM - Population in Sydney, SAM- Population active in fitness and

Brisbane and Melbourne physical activities SOM
Age Group
(Population of cities * percentage (Age group population, p1 * (SAM*5%)
of age groups, P1) percentage active), P2

Millennials 3,270,996 883,169 44,158

Gen X 2,710,434 1,219,695 60,985

Baby boomers 2,636,563 500,947 25,047

Total 8,617,993 2,603,811 130,191

Figure 9. TAM was calculated from Figure 6 and 8, SAM was calculated from Figure 4 based on TAM, SOM was
estimated as 5% of SAM.

Projected market growth 2022-2027

2023 2024 2025

130,191 133,633 135,073

Figure 10. Calculation was based on Figure 9 and Figure 7.

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1.1.2 MARKET GROWTH
FIGURES

TAM
Sydney, Melbourne Brisbane population in Millennials,
Gen X, Baby boomers
8,617,993

SAM
Population active in fitness and
physical activities, in 3 Generations
2,603,811

Millennials aged 25-39 in capital cities- 44,158

SOM Gen X aged 40-54 in capital cities-60,985
Baby Boomers aged 55-74 in Capital cities -25,047

Total: 130,191

Figure 11. Illustrates Figure 10 graph

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1.2 COMPETITION

A. Gyms and fitness clubs: The Australian consumer nowadays enjoys a number of choices when it
comes to fitness clubs and gyms.
B. Home gym products: The number of home gym equipment providers is growing. Some of the
equipment available in the market are as follows:

Competitive Competition’s lucrative Competitive

Products offer advantage for RIDE ME

Smart tech embedded, Comes with apps

DeskCycle Small size, portability, Calorie calculator, and websites, tutorials and lessons, online
Under Desk Bike Workout while working in a desk setting communities

Nordictrack Wide Range of selection, Smart tech

Price, online communities
Exercise Bike embedded, interactive training

Size, Smart technology, tutorials and

Celsius lessons, online communities, Appealing
Digital screens, Adjustable, portable, Pricing
Exercise Bike design

Portability and size, Smart technology,

Lifespan Adjustable, commercial grade, wide range of
tutorials, lessons and online communities,
Fitness Spin Bike products for different price
appealing design

Portability and size, Smart technology,

Horizon
Wide range of products, digital screen tutorials, lessons and online communities,
Comfort Programmable Bike
appealing design

Source: individual product website

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1.3 SWOT ANALYSIS

RIDE ME considers itself to be a home gym equipment provider. For now, we are only focusing on
bikes. What sets RIDE ME apart from the above-mentioned products are mainly its design, portability,
tech infused and smart, affordability and the comfort of use. With a website and app, RIDE ME will not
only provide a tool but also a plethora of tutorials, tips and guidance.

1.3.1. STRENGHTS

Affordable

Sleek designed and robust performance

Smart and connects to smartphones and smart watches

Records and tracks performances as well as user stats

Portable: ease of relocating

1.3.2. WEAKNESSES

New product on the market

Less brand awareness

Difficult to penetrate the existing gym market

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1.3 SWOT ANALYSIS

1.3.3. OPPORTUNITY

Demand for home fitness equipment

People’s preference for home workouts

Increased awareness for health and fitness

1.3.4. THREATS

Market on recession (currently)

Fitness club’s wide range of services

Economic changes, policies and regulations

Increasing number of new products from already established brands.

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1.4 PRODUCT OFFERING

Convenience:
RIDE ME, a smart fitness bike, allows the users to have a complete workout experience at home
removing the need to travel to a gym/ fitness club. With tutorials and lessons that can be
accessed through the digital screen, users can get an interactive workout sessions without a
hassle.

Personalization:
With smart technologies, RIDE ME bikes can track user, user performance and user fitness
status (if connected to wearables). This will provide the user to have a more personalized
workout sessions with real time feedbacks on key fitness metrics such as heart rate, power,
speed, and manage their workout goals effectively.

Communities:
With a RIDE ME account, users can be a part of RIDE ME community. Users can connect with
other users, share their sessions, ask for help, get feedback and so on. Involving in a community
can help the user to be motivated in achieving their fitness goals.

Time and Cost saving:

With a RIDE ME bike at home, users can eliminate their need to travel to gym or a fitness club.
Users can save their travel time. Users can also save money on gym memberships, workout
classes, fitness clubs and so on.

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1.4 PRODUCT OFFERING
TO THE TARGET MARKET

Targets Product Offering

Millennials A new fitness equipment embedded with smart technology for health and fitness.

A fitness equipment that can be installed in any room, convenient to use and provides
Gen X an overall experience while improving health and wellness. A handy tool for busy
people.

Easy to use equipment, that promotes health and wellness with guidance and support
Baby Boomers available with a touch in a digital screen.

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1.1 KEYS TO SUCCESS

Quality: RIDE ME bikes are safe, durable and effective in helping users maintain their health and
wellness. They are built with high quality materials and manufacturing processes.

Innovation: The bikes are a top-notch fitness equipment for personal use and is embedded with latest
smart technologies such as internet connectivity, bluetooth support and so on that makes the user’s fitness
routine convenient and efficient.

Marketing and Sales: Sales and marketing processes will involve people. We have policies and
procedures that do not hamper employee motivations rather contribute to their satisfaction. We understand
for a successful business, employee satisfaction must be a priority.

Customer Service: RIDE ME understands that for any business to be successful, the customers must be
satisfied. We are focused, not only on entering the market flashily, but maintaining the customer
relationship at the top most level from day zero. With satisfied employees helping out the customers on a
need per basis or a day-to-day basis, our operations are expected to boost customer engagement and
satisfaction.

Partnerships: RIDE ME has built a strategic partnership with quality manufacturers and distributors as
well as trainers and fitness industry stakeholders which is vital for any company to flourish.

Others:
·Staffs: Recruitment of experienced companies and staffs
·Productivity goals: Raising productivity annually by at least 10%
·Cost goals: Lowering costs annually by at least 15 %

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1.6 CRITICAL ISSUES

There are many processes that start from manufacturing the bike to its sales, after sales
engagement and so on. Manufacturing a bike definitely involves processes that have some adverse
effect on the environment. RIDE ME understands the environmental impact of its business and
outsources manufacturing to a company with sustainable practices and lower carbon footprint. We
accept manufacturers who use recycled raw materials in our support for the environment and
society. For shipping and deliveries, we are prioritising getting hands on cyber-trucks from Tesla
and other electric trucks which can help reduce carbon emission in the supply chain.

There is a nuance in the fitness community that the gym equipment, after some period, will
accumulate sweat and becomes a breeding point for germs and bacteria which may adversely affect
the user’s health. RIDE ME has partnered with hygiene companies and provides proper cleaning
chemicals for the equipment that has null effect on the health of the user.

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2. MARKETING STRATEGY

2.1 MISSION
Mission:
"Our mission is to inspire and empower people to achieve their fitness goals through innovative,
high-quality fitness equipment. We strive to provide safe, effective and easy-to-use solutions that
meet needs and preferences, and our purpose is to improve the lives of individuals and communities
around the world."

Slogan: BUDGET FRIENDLY, BODY CHARGER

1.1 MARKETING OBJECTIVES

Create brand awareness:

To create and increase awareness in the selected customer market about RIDE ME bikes by
introducing brand personality through a brand ambassador. Contents with brand ambassador
will be shared on social media platforms, company website, TV ads, radio ads and newspaper
ads followed by a product marketing campaign utilising SEOs, social media marketing and
offline through print ads, posters and billboards. This will help highlight the features of RIDE
ME bike and its benefits.

Create customer engagement and online presence:

To develop online engagement and customer engagement by utilising website blogs and
discussion forums. Additionally, platforms like Pinterest, Twitch and Discord will be vital to
boost online presence among the potential customers by hosting discussions and live
demonstrations in those medias.

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2.3 SEGMENTATION

Segmentation Geographic Demographic Demand/Behaviour

Who have busy schedule

Sydney,
Busy People GEN X
Melbourne, Brisbane Who prefers to workout at
home, on their own schedule

Who prefers to try out new

Sydney, Melbourne,
Trend followers Millennials, equipment and follow fitness
Brisbane
trends

People with health and

People with health and Sydney, Melbourne, Baby
wellness needs due to their
wellness needs Brisbane Boomers
age and health conditions

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2.4 TARGET MARKET

The target market for RIDE ME bikes is working class people aged 25 and above. They consist of
Millennials, Gen X and Baby boomers. As an exception, baby boomers may not be in the working class.
Millennials, Gen X and Baby boomers all have a strong desire to stay fit and healthy.

Our research indicates that among these three age groups, Gen X are more active in physical activities
and present more possibility of adopting our product. Millennials are motivated to maintain a healthy
lifestyle and more likely to try new products for their fitness needs. Baby boomers have a need to stay healthy
fit to prevent health issues because of their age.

RIDE ME positions itself as a stationary fitness bike that is lightweight, sleek designed and smart. We
are confident that the Millennials will be allured by our design and the technology embedded within the bike.
We are also confident that the Gen X will understand the benefits that the bike presents, such as efficiency,
convenience, ease of relocation and so on, for their busy lifestyle. Baby boomers will be attracted by the
simple user interface and convenience of working out from their home with online tutors and trainers. Thus,
our marketing efforts will be focused on reaching and engaging with this target demographic through
different marketing channels that suits the target, such as social media, radio and TV ads, newspaper ads,
email marketing and so on.

Overall, our target market is a growing and profitable segment that presents a clear opportunity for us
to establish a strong brand presence and drive long-term growth.

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WHY MILLENNIALS AND
GEN X ARE OUR PRIMARY
TARGET

Millennials and Gen X are mainly working class people with stable income and purchasing capacity. The
following graphs shows the average weekly income of the working class people in Sydney, Brisbane and,
Melbourne.
The second graph shows employment figures in those areas.

Working adults in the targeted market areas

have an income of at least A$1700 per week on an
average. Considering our product price, the selected
target segment is an ideal choice.

Figure 4. Source: Average Weekly Earnings, Australia. Australian Bureau of

Statistics, 2022

Employment Statistics in 2022 shows that in

those big states average employment to
population ratio in NSW 64,4%, VIC 64.3%
and QLD 63.8%

Figure 5. Source: ABS- Labour Force, Australia, states and territories 2022

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 2.5 POSITIONING

RIDE ME is a new product in the market. People/customers will need to be aware of the brand for which the
marketing team must create a brand portfolio that appeals to the target market.

Positioning Statement

Brand RIDE ME, a stationary bike for fitness

Sleek design, robust, portable, smart, affordable and tech enabled or

Competitive frame of reference
SMART

Target audience Working class people aged 25 and above

Convenience:
-Ease of setup and use
-Smartphone apps and website access for various tutorials from experts
Personalization:
-Improves body – muscles, heart and lungs, health
-Tracks performance records, health status and workout setups
Value Proposition
-Settings customizable via smartphone apps and embedded digital screen
Communities:
-Online communities for support and experiences
Time and cost saving:
-Users can work out at home saving time to travel to gym/ fitness clubs
-Users can save money on gym/ fitness club memberships

Tagline Being fit is easy now, ride me!

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3. MARKETING PROGRAM
3.1 PRODUCT STRATEGY

The ‘RIDE ME’ bike will be a sleek and slim designed bike with a robust performance and provides a
comfortable workout session for the users. It will be a portable device so that it can be repositioned with
ease as the user requires. The website and app will be user friendly and easy to browse through.

Products:

Target
Products Features
Market

Trendy and appealing design for trend lovers

Different flywheel weight options
Connectivity features for Bluetooth, smartphones
RIDE ME
Millennials and Wi-Fi
‘Sleek’
Premium apps and website accounts with wide
access to tutorials and communities
Access to ‘RIDE ME’ online community

Robust yet appealing design

Flywheel weight tailored to each customer which
RIDE ME can be upgraded for additional fee in the future
Gen X
‘Unlimited’ Apps and website account access tailored for
each customer according to their needs.
Access to ‘RIDE ME’ online community

Easy to use UI for screens

Default flywheel tailored to the age group
RIDE ME One week free - in person tutoring and guidance
Baby
‘Basic’ including first setup
Boomers
Apps and website accounts access for materials
tailored to the age group
Access to ‘RIDE ME’ online community

25
3. MARKETING PROGRAM
3.1 PRODUCT STRATEGY

Product Elements:

The RIDE ME brand logo is black and white – Ying Yang symbol with letters R and M written on each part
of the logo.

RIDE ME bikes offer following elements of value to the customers.

a. Appealing design: Sleek and slim design with a stylish modern look. Blends in the user’s home décor
easily.
b. Easy to use: With smart tech and screen embedded, setups and operations will be a piece of cake even to
a first-time user. Easy to access UI in the embedded screen makes navigation to different sections easy.
c. Customizable setups: Connecting to the smartphone app with the user’s personal account, pre-saved
workout settings can be easily loaded. Additionally, can record and track performances over a long period of
time and analyses health status and providing recommendations for exercises such as workout length and so
on.
d. Portability: With a lightweight but robust design, the bike can be easily relocated to anywhere the user
prefers within minutes. No hassles if the user wants to work out in the living room or the bedroom or the
balcony. Saves time and effort.
e. Comfortable: The RIDE ME bike’s design provides a comfortable seating and exercising experiences
with easy to maintain and care for guideline.
f. Tutorials and communities: The website account and app let the user to connect with other users and
experts on fitness and hosts a ton of workout tutorials that the users can perform with and without the bike
for their overall health.
g. Saves subscription fees from gyms and fitness clubs on the long run.

26
3. MARKETING PROGRAM
3.1 PRODUCT STRATEGY

Elements of Value
Targets

A new fitness equipment embedded with smart technology and sleek

Millennials
design for health and fitness.

A fitness equipment that can be installed in any room, convenient to

use and provides an overall experience while improving health and
Gen X
wellness. A handy tool for busy people.

Easy to use equipment, that promotes health and wellness with

Baby
guidance and support available with a touch in a digital screen.
Boomers

What sets the RIDE ME bikes apart from their competitors is the embedded smart technology that
tracks the user’s health status, performance records and customised workout settings. Multiple users can
connect their smartphone and app to get their preferred workout settings and data displayed in the screens.
The screens can also launch the RIDE ME’s online tutorials and lessons. Adding to that, portability is
another huge factor that differentiates the bike from the competitors. Lightweight and built-in wheels
make it easier for the bike to be relocated from one place to another within or to another home.
Packaging
Each separate parts of the bike is packaged with bubble wraps which is then contained in a hard bio
degradable/ recyclable hard carton box. Each packaging contains disassembled parts like handles, screens,
body and pedals. Additionally, there will be a bag to collect all the plastic and packaging remnants, which
can be posted to the recycling facilities with ease.
Guarantees and Warranties
RIDE ME offers a guarantee period of six months and warranty period of two years. We also provide
replacement for the bikes in case of faulty deliveries.
Support services
RIDE ME provides at least two customer enquiry telephone line at each branch. We also have direct
message from our website and social media platforms. Additionally, the customers can also contact us
with emails.

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3.2 PRICING STRATEGY

The RIDE ME bikes are positioned as premium products and offer advanced features. They are
built with high quality components and embedded with latest technology which sets them apart from
the competition. To determine the price for our bikes, we utilized competitive pricing model. We are a
new company and we are providing an alternative to existing smart fitness bikes in the market.
Utilising the competitive pricing model, we understood ‘what features/services to include’ and ‘how
much the customers are willing to pay for them’. It also helped the us to design our bikes in
accordance to our target markets and define our sales goals. Additionally we utilized penetration
pricing to keep our product prices lower than our competition to quickly build a customer base from
the early days.
Cost of manufacturing: RIDE ME bikes are manufactured with top quality materials and components
which is why our bikes are pricier than some of our competition.
Manufacturing is outsourced to REXON in Taiwan. Outsourcing the manufacturing eliminates the cost
and issues related to production of goods. It also provides the company with more time and resources
to focus on customer service. As manufacturing was outsourced and we have a fixed cost of
production for the contract period with the manufacturer, we didn’t use a cost plus pricing model.
Competition: As we are using competitive pricing model to price our bikes, it was vital to understand
our competition. To understand the competitive products and their prices, we conducted a thorough
analysis of the prices of similar fitness bikes offered by leading competitors. Based on this analysis,
we determined a price point that is competitive which reflects the premium quality of our product.
Analysing the products offered by our competition, our bikes cost more than some of our competition.
However, our bikes provide smart technology and advanced features than those products. For the
products with similar features provided, we are affordable than our competition at price of AUD 1000
per bike.
Most smart bikes with digital screens that provide sleek designs and comforts of portability are priced
at AUD 1200 or more. For e.g., NordicTrack fitness bike model s10i are priced at AUD 1785.
Since we have reduced the cost of manufacturing by a significant amount, we can sell our bikes at a
price affordable to any target segments and is lower than our competitors.

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3.2 PRICING STRATEGY

Target market, Products and Prices: Our pricing strategy will be tailored to appeal to the
targeted demographic by offering different purchase options.

Target
Market Product Options Price/Payment options

Price: AUD 1200

Instalment payment
Millennials RIDE ME ‘Sleek’
Payment with third party credit providers
such as after pay

Price: AUD 1000

RIDE ME
Gen X Instalment payment
‘Unlimited’
Third party credit such as after pay

Price: AUD 900

Instalment payment
Baby Boomers RIDE ME ‘Basic’
Payment with third party credit such as after
pay

Since, our target markets are defined by the age group, we want to price our bikes at an affordable price
to all target markets.
RIDE ME ‘basic’ is designed for baby boomers and has limited tailored services assigned to the product
that are useful for the users which is why the price is lower than other two models – ‘RIDE ME Sleek’
and ‘RIDE ME Unlimited’ which provides more customizability and services.

Promotion and discounts: To drive early sales and establish our brand in the market, we will offer
promotions and discounts to incentivize customers to purchase our fitness bike. These discounts will be
strategic and temporary, and will be adjusted as necessary to maintain our desired pricing strategy.

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3.3 COMMUNICATION AND
INFLUENCE STRATEGY

3.3.1 GENERAL ADVERTISING STRATEGY

Creating a brand awareness among the target market is the first priority for RIDE ME as it is a new
product and brand for the market for which we will utilise the mediums of television, radio and newspaper
advertisements with details on ‘how a RIDE ME bike can change a user’s life’ and the health benefits of
the bikes. Though televisions and radios as well as newspapers are thought to be as old school information
media, it is still prevalent source of information among the GEN X and Baby boomers. We can boost our
presence among the Millennials by utilising Google’s search engine optimisations and website ads.

3.3.2 MARKETING PUBLICATIONS AND SOCIAL MEDIA

Nowadays, to achieve an absolute brand awareness, one must utilise the social media platforms.
Platforms such as Facebook ads, Instagram ads, YouTube ads and many more provides a 360-
advertisement platform in the digital age. Having a strong social media presence is vital for any business to
sustain.

In order to inform our target market about our arrival and presence in the market, we will focus on
Facebook, twitter, Instagram, YouTube and TikTok. For these platforms we will mainly develop image
and video contents to share with the online followers followed by digital ads to target people who are
looking for fitness equipment and or lessons on the internet.

Alternatively, to engage our potential customers we will focus on blogs on our own websites, create a
discord community, create Instagram hashtags and create fitness tutorials hosted by fitness experts on
platforms like Udemy.

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3.4 CHANNEL STRATEGY

RIDE ME bikes have three warehouses, one each in the three target market locations. The warehouse stores
the manufactured bike parts. The assembly of bikes and dispatch happens when the company receives an
online order through company websites and other online platforms. Limited number of assembled bikes are
stored in a small store in the store premises to facilitate in store sales.

Channel Strategy

With the company’s website, RIDE ME bikes will be sold in a direct to

customer model in the target market locations.

Traditional online market such as amazon and eBay provide more flexibility
to any businesses.
Direct to customer Tapping into trusted platforms with millions of users will provide RIDE ME
with additional sales boost.

Social media sites provide content driven ecommerce services from which
social media users can tap into a product content to be able to buy a product
or services without leaving the platform. RIDE ME will utilise these
services to boost product sales.

Customers can purchase a RIDE ME bike from stores located in the three
In Store target market locations. They can choose to have it delivered or just pick it
up themselves.

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CUSTOMER SERVICE

Our customer service strategy will be based on the following key principles:
Availability: Our customer service team will be available to assist customers via phone, email, and live chat
during regular business hours, and will respond to all inquiries within 24 hours. We will also provide a customer
service hotline that is accessible outside of regular business hours for urgent inquiries. In addition to these,
customers can also contact us through social media sites such as Facebook, Instagram and so on.

Personalization: Our customer service team will strive to provide a personalized experience to each customer
by understanding their individual needs and offering customized solutions. We will also maintain detailed
customer records to ensure that our team is informed about the customer's history and preferences.

Empathy: Our customer service team will approach all customer inquiries with empathy, understanding that
each customer is unique and may be experiencing different challenges. We will strive to resolve customer issues
in a timely and satisfactory manner.

Continuous Improvement: We will regularly assess our customer service processes and gather feedback from
customers to identify areas for improvement. Based on this feedback, we will continuously improve our
customer service strategies to better meet the needs of our customers.

Customer Service Channels and Communication Tools

Telephone General inquiry lines, hotlines, 24/7 urgent inquiry line, SMS lines

Social media Facebook messenger, Instagram chats, Pinterest, Discord and others

Website and app Chatbots, direct messaging and emails, discussions forums

In store Customer service teams

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4. IMPLEMENTATION AND CONTROLS
4.1 IMPLEMENTATION

People in Charge

RIDE ME is a new company to the market with its new product, RIDE ME bikes. We have a considerably
smaller teams distributed in three different cities of Australia – Sydney, Melbourne and Brisbane. In each
branch, there are different departments headed by number of managers with a total of 15 to 20 employees.
Among them, the marketing department is headed by a marketing manager who leads a team of marketing
manager, marketing analyst, SEO specialist and social media experts. The head office will be in Sydney
accompanied by the store front. The branch managers report to the CEO.

Time and Location

Considering the launch of RIDE ME bikes, the company has determined that the month of November 2023
will be a suitable time. With festive season and new year on the way we can create a brand presence and boost
sales right from the start. The marketing campaign will start around August. We will focus on a push and pull
approach until we meet half of our financial goals. After this point, call to action marketing will be prioritised
to increase online sales.
Regarding the location for the stores, there will be three stores for the first two years - one each in Sydney,
Melbourne and Brisbane. Additionally, there will be a website facilitating online presence and sales in these
regions.

Implementation timeline

Pre-launch: Prior to the launch of RIDE ME bikes, the marketing team will use SEO optimizations,
Facebook ads and other social media site ads to generate interests from potential customers.
Launch: After the pre-launch advertising period, RIDE ME bikes will be launched in the market. There
will be posters placed in major foot traffic areas. The marketing team will contact selected content creators
and influencers to try RIDE ME bikes and directly boost the product in their contents. The website and app
will start providing a free three months trial period for access to tutorials and guidance.
Post-Launch: The ads campaign will remain. Marketing team with fitness experts will conduct free
sessions for interested customers in selected areas to try the bike and teach other physical exercises as
well.
Market-research and feedback: After the first quarter, the marketing team will engage in analysing sales
and feedback from customers and potential customers. They will also review competitor’s performance to
identify gaps and shortcomings. The KPI’s set before will be analysed and adjusted as required

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4.1.1. FINANCIAL ANALYSIS

4.1.1.1 FINANCIAL OBJECTIVES

Being a new company and offering a new product in the market, RIDE ME will adapt different
variations of marketing strategies in different phases to improve brand visibility, awareness and
revenue.
Proper budgeting for production, sales and marketing will be in place to ensure that the company
won’t deviate from its goals.
Revenue generation will be focused on sales of the bike from customers primarily and from
app/website subscription from non-bike owners. Subscription will also provide online engagement and
furthering the customer base.

The financial objectives for RIDE ME are as follows:

Decrease customer acquisition cost by at least 5% per year
Decrease cost of product delivery by 2% annually
Increase revenue by at least 10% each year

4.1.1.2 BREAK EVEN ANALYSIS

The initial investment in the company is expected to be AUD 1,500,000. This includes all the
expenses forecasted for the next two years of product launch. To get to the breakeven point just from
sales of the bike, at least 1500 bikes need to be sold. The company has set a time period of one year to
get to the breakeven point.

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4.1.1.3 SALES FORECAST

As a new company, RIDE ME doesn’t estimate a huge number of sales for the first year. The
company however, expects to sell at least 1500 bikes for the first year (2024 will be considered first
year even though the bikes will launch on November of 2023). From second year onwards, company
expects a sales growth of 10% each year. The company will focus on expanding its probable customer
base for the first year and will launch different marketing campaigns.
The drawbacks of being a new company is not having past years data and therefore the need to
focus on estimates to actually generate the forecasts. We are currently estimating our sales from
reviewing the competitor’s performance in the market during the previous years.

Sales forecast (2023 – 2025)

Expected sales (units) Expected revenue (AUD)

Year Price (Expected 10% increase in
per unit: 1000 sales)

2023 (November onwards) 150 150,000

2024 1500 1,500,000

2025 1650 1,650,000

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4.1.1.4 EXPENSE FORECAST

The company will invest at least AUD 300000 each year until the break-even point for marketing.
This will include salaries, advertising, market research, campaigns, customer engagement and so on.
The company also expects the costs to increase every year due to various factors which is why the
minimum budget of marketing expenses may rise on an annual basis. For this forecast expenses in each
category is expected to rise by at least 5%.

Expense Category 2023 2024 2025

Advertising 300000 315000 330750

Salaries 350000 385000 423500

Market Research 20000 21000 22050

Promotion 25000 26250 27562

Public Relations 15000 15750 16537

Total 710000 763000 820400

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4.2 MARKETING ORGANISATION

The marketing department oversees the marketing campaigns. There are 5 employees in the
marketing department. The team includes a marketing manager, marketing analyst, SEO specialist and
social media expert.

Marketing Manager: Marketing manager is responsible for managing the marketing department
activities and processes and reporting to the branch manager. They will oversee the performance of the
marketing team while aiding them to create marketing campaigns as well as running them.

Marketing Analyst: Marketing analyst is responsible for providing insights on market trends,
consumer behaviour and competitive landscape and help the department make informed marketing
decisions.

SEO specialist: SEO specialist is primarily focused on improving online visibility of the company’s
website. They are also responsible for designing UI, creating contents and optimising website on a
whole.

Social media expert: Social media expert is responsible for increasing brand visibility and presence on
different social media platforms. They create appealing contents for the platforms and boost customer
engagement from such platforms. They are also the first to respond to a query lodged through those
platforms.

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4.3 CONTIGENCY PLANNING

For uninterrupted production and supplies, we have contracted at least two manufacturers and
logistics providers.

For data and privacy issues, our IT team will continuously monitor and upgrade the web and app
services.

For equipment failure issues, there is a warranty and guarantee provided to customers.

For safety and health benefits, there are guides and tutorials provided.

For environmental issues, the manufacturers and suppliers are shortlisted with extensive checks.

For economic downturns and issues, the company has shadow investment companies, proper plans
and policies in place.

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5. REFERENCES

Australian Bureau of Statistics. (2022, June). Population. Retrieved from ABS:

https://www.abs.gov.au/statistics/people/population.

Australian Fitness Academy. (n.d.). FITNESS IN AUSTRALIA. Retrieved from Fitness Education:
https://www.fitnesseducation.edu.au/about-us/fitness-in-australia/

Clearinghouse for Sport. (n.d.). Clearinghouse for Sport. Retrieved from Clearinghouse for Sport:
https://www.clearinghouseforsport.gov.au/kb/sport-participation-in-australia/participation-statistics-and-trends

Fitzgerald, T. (2021, 12 31). The Australian Fitness Industry in 2022. Retrieved from Medium:
https://tomfitzgerald.medium.com/the-australian-fitness-industry-in-2022-14ee7d416c49

INDEXBOX. (2022). Australia- Gym and Fitness Equipment - Market Analysis, Forecast, Size, Trends and
Insights. Retrieved from Indexbox: Australia - Gym and Fitness Equipment - Market Analysis, Forecast, Size,
Trends and Insights Please mention the Source: https://www.indexbox.io/store/australia-gymnasium-or-athletics-
articles-and-equipment-market-analysis-forecast-size-trends-and-insights

MAIA Financial. (2021, 04 21). How technology is transforming gyms and recreational centres. Retrieved from
MAIA Financial: https://www.maiafinancial.com.au/article/how-technology-is-transforming-gyms-and-
recreational-centres/

XTEND BARRE. (n.d.). HOW THE FITNESS INDUSTRY IS CHANGING IN 2022. Retrieved from XTEND
FRANCHISE: https://xtendfranchise.com.au/how-the-fitness-industry-is-changing-in-2022/

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