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ENT203 Marketing for Entrepreneurs
Assessment 2 Case Study Analysis
Ari and Jenna are local entrepreneurs who have started a town scooter business. They produced a prototype with the assistance of the local hardware incubator and accelerator and conducted some early prototype testing with a small focus group brought together by the incubator.
They are not first to market in the industry as another well-established town scooter business has moved into Australia and started rolling out across cities. Ari and Jenna have observed the early days of the establishment, trials and roll out of their competitor paying particular attention to take up rates, safety reports in the media and any legislative threats and hurdles.
They have also spent several months researching other countries’ experiences with town scooters and other potential competitors. They felt particularly lucky to come across a government report on a scooter trial in a similar country revealing take up and public opinion, plus the perceived benefit to tourism. Furthermore, the demographics report on one of the major cities was similar to the results of the Australian 2016 Census report.
Ari had studied marketing at university and decided to use social media and mobile strategies to research the market’s appetite for a second supplier in the city. He decided the first step was to test their brand with the focus group at the incubator and on a social media group of past students from university. He attended a few carefully selected free business networking events and asked participants questions about the brand, their likelihood to use any scooter, and likelihood to try an alternative to the known brand.
Ari and Jenna planned and set up a ‘come and try day’ with the permission of the city council. This was held in a well-known tourist destination and local recreational area. Over the course of the day, over 200 people tried the prototypes and gave feedback on the brand, likelihood to use the brand and price they would pay to use the scooter. Jenna took photographs and videos using her mobile phone, and took several testimonials on Facebook Live. Ari set up a business site on several social media platforms and the media collected on the day was uploaded along with the logo that had received the best feedback.
Ari started online polls in social media, with prizes promising free rides for those responding. He used an inexpensive mobile marketing app to deliver polls on an opt-in basis. They did not have the cash to purchase a database of potential customers, so they targeted social media groups in the identified demographic with engaging videos and stories about the founders. He knew that the main features of the product and method of collection and payment did not differ significantly from the other provider, so their point of difference was to attract customers wanting to support local companies over the international larger companies. Ari decided to focus on local content and showcase local features.
Jenna made contact with tourism operators with an option to provide EEZY Scooters as part of the tourism package. She found three operators interested in a package deal and who were prepared to promote for free through their databases, websites and local media. There was a fourth interested operator, but Jenna knew they used push promotions on mobiles and social media, and talked a lot about data scraping. Although it sounded like they could get a lot more marketing research information, she felt this was not a good option and did not continue with the discussions.
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