Digital Marketing Strategy for E-Bikes in Australia

Executive Summary

The marketing director at Worldwide e-Bikes engaged consultants to develop a report on the company's digital marketing strategy in light of a plan to expand into the Australian market. The report provides crucial insights to the board of directors on the digital marketing opportunity in Australia, persona research, strategies for short-term market impact, and KPIs for fiscal oversight.

The research conducted concludes that the Australian market provides a viable opportunity for digital marketing given the high levels of internet penetration, internet usage, and access to mobile devices such as smartphones. To counter the high intra-industry competition, the company could differentiate itself by providing additional aftersales services in line with customer needs, offering personalized customer experiences, and selling through established ecommerce businesses such as Woolworths.com.au, apple.com, and coles.com.au to reach more customers online.

To effectively develop its personas, the company could use a combination of research strategies, including focus group discussions, website analytics, interviews, and online surveys. These would provide an adequate understanding of customers' needs, expectations, and profiles. To realize short-term market impact, the report advises that the company employ pay-per-click advertising and geofencing marketing, and then use KPIs to measure the effectiveness of the selected marketing tactics. The most appropriate KPIs would be the click-through rate, goal completion rate, average time on page, and return on ad spend.

Digital Market Opportunity in Australia

The Australian market presents a promising opportunity for e-bikes. First, Australia offers a flourishing e-bike market that has not been exhaustively exploited. The use of e-bikes only began to take off in Australia in 2017, when the country harmonized e-bike regulations and adopted the Pedelec safety standards used in Europe to govern the construction and design of e-bikes (We Ride Australia, 2021). These measures helped reduce the number of accidents involving e-bikes. Together with the increased focus on healthy lifestyles and environmental conservation, they have resulted in a consistently growing cycling interest that the company could exploit. E-bike sales in the Australian market have grown by over 500 per cent since 2017, with sales nearly doubling every year since then (We Ride Australia, 2021). Demand has increased substantially since the start of the COVID-19 pandemic in 2020, due to increased reliance on e-bike riders for on-demand food delivery and the fact that bikes allowed individuals to travel while maintaining social distance. Projections indicate that e-bike sales in Australia will increase dramatically over the next decade, from 100,000 units in 2025 to 500,000 units in 2035 (Institute for Sensible Transport, 2019). This projected growth presents a viable business opportunity for Worldwide e-Bikes.

The company has indicated that it intends to sell bikes through its ecommerce platform and retail partners should it decide to venture into the Australian market. The Australian market also presents a flourishing opportunity for digital marketing. Ninety-nine per cent of the country's population has internet access, with 91 per cent having access to home internet and 75 per cent having access to the national broadband network (NBN) (Australian Communications and Media Authority, 2021). Furthermore, 94 per cent of Australian adults have access to a mobile phone or mobile device that they use to access the internet (Australian Communications and Media Authority, 2021). In 2021, almost half (45 per cent) of adults worked online from home, 32 per cent studied online, and 41 per cent accessed telehealth services on their devices (Australian Communications and Media Authority, 2021). Australian customers are also firmly established in ecommerce — in 2021, 37 per cent of adults sold items online and 85 per cent bought items online (Australian Communications and Media Authority, 2021). The high levels of internet access and ecommerce usage make the Australian market a viable option for digital marketing.

The bike dealer industry in Australia is fragmented and characterized by high levels of intra-industry competition, with over 600 motorcycle retailers (IBIS World, 2021). Motorcycle Holdings Group holds the leading market position, although its control is not sufficient to influence the market in a specific direction (IBIS World, 2021). None of the companies is large enough to influence industry dynamics. The fragmented nature of the market implies minimal barriers to entry, better opportunities to stand out through differentiated offerings, and ease of reaching target customers (IBIS World, 2021). Given the similarities in brand offerings, Worldwide e-Bikes could differentiate itself by providing personalized customer experiences and additional aftersales services in line with customer needs. The company could also invest in digital marketing platforms or sell through established ecommerce businesses such as Woolworths.com.au, apple.com, and coles.com.au to reach more customers online.

Persona Research Methods and Benefits

A persona is a fictional representation of who a company's customers are, how they buy, how they make purchase decisions, and what their goals are (Hannerberg, 2016). Marketers typically generate personas by conducting research on customer behaviour (Hannerberg, 2016). Research helps to strengthen the foundation upon which the persona is developed (Hannerberg, 2016). Several research methods are available to the organization for researching the persona of bike customers in the Australian market. The methods selected depend on the specific features of the target customers, the nature of the market, and the resources available.

To research the personas for their bike customers, Worldwide e-Bikes could use a combination of methods including focus group discussions, in-person interviews, online surveys, and website analytics. Given the high level of competition in the industry, it may be important for the company to use a combination of methods to ensure that it collects sufficient data on the needs of target customers.

Since the company will primarily be using digital platforms for its marketing activities, it may be vital to administer an online survey with questions designed to understand the profile of potential customers. To ensure a wider reach, researchers could share the survey link on the corporate website and on social media networks such as Facebook and Twitter. Encouraging followers to share the link with friends and family would create a snowballing effect and help the company collect as many responses as possible from diverse customers. The survey would require respondents to provide information on their demographic profile, goals, what they value most, the factors they consider before making a purchase, and their expectations from a vendor (Hannerberg, 2016). This method is cost-effective and will help the company gather a large amount of information.

Since this is a new market, it may also be prudent to carry out focus group discussions in addition to the online survey. Focus groups allow for a real-time exchange of ideas between the researcher and respondents that would not be achievable in an online survey (Hannerberg, 2016). The company could organize a focus group discussion where one of their e-bikes is brought for participants — potential customers meeting a specific profile — to see, test, and then share their views and opinions. Focus groups also provide an opportunity to observe participants' attitudes, feelings, and expressions. Hannerberg (2016) advises that focus group moderators distribute printed questionnaires for each participant to complete, ensuring that everyone has a voice. To minimize the risk of social desirability bias — the tendency to provide answers that seek to please the moderator rather than reflect the truth (Bergen & Labonte, 2019) — the company's staff could remain behind a glass wall during discussions so that participants do not see them. Focus groups are expensive, and it may therefore be important to engage a reputable moderator for maximum efficacy.

Additionally, the company could conduct in-person interviews with sales teams, customer service personnel, and other employees who interact with customers to obtain their views on what potential customers' values may be (Hannerberg, 2016). The company's ecommerce site could also serve as a valuable source of information through website analytics (Hannerberg, 2016). By analysing the details of visitors to the website, the company could obtain crucial information on preferences, geographical location, and demographic characteristics — all of which could inform persona development.

Well-researched personas can yield several benefits. First, personas informed by thorough research ensure that the company gains an adequate understanding of its customers or potential customers. This facilitates the tailoring of content and messaging to address the target group's specific behaviours, concerns, and expectations (Hannerberg, 2016). For instance, the company's customers are bike enthusiasts. However, to obtain a full understanding of their specific interests, needs, and purchasing drivers, the company needs well-researched personas.

Secondly, well-researched personas allow the company to personalize its marketing strategies in line with the needs of different customer segments. Rather than developing a single advertisement for all customers, proper personas would guide the company toward targeted marketing. For instance, the marketing team could develop television adverts for older customer segments and social media adverts for younger ones (Hannerberg, 2016). Personas therefore enable the creation of targeted marketing content, which increases the overall effectiveness of the company's marketing strategy. Finally, well-researched personas help to reduce costs, as targeted marketing minimizes waste and ensures that marketing resources are allocated efficiently.