According to Israel Central Bureau of statistics, the country had a population of 8,855,000 people. There are slightly more males than females with the ratio of male to female estimated at 1.05. Approximately 75% of the population are Jews and 20% are Arabs. The rest of the immigrants are about 5% of the total population. The population is estimated to be growing at 2% with average life expectancy of 82 years. The high life expectancy is due to the fact that there is high standard of living hindering disease prevalence. The population in Israel is such that children between 0 to 14 years are approximately 27% while those who are between 15 to 64 years are the majority at 62%. The population of people who are 56 years and above is about 10%. (Israel Central Bureau of statistics, 2018).
The population structure in Israel favours bicycle business due to the fact that majority lie between the ages of 15 and 64 (Burns, 40). Although bicycles are sold even to children or those who are below 14 years, having a youthful majority suggests that the population has a high purchasing power and can be able to buy the goods which are being sold. In the bicycle industry, manufacturing, distribution and retail is undertaken by different entities. In some cases, manufacturers may sell directly to consumers. Depending on the establishment, establishing complete bicycle industry in Israel may be profitable. Having one premise for the manufacture of bicycles with a chain of distributers and retailers can enhance business.
Bicycles are commodities that are consumed by children, youths and adults (Collins, 193). The market ranges from those who rent bicycles to those who buy their own and service the same by doing repairs in case of break down. Establishing a bicycle industry in Israel means that everyone is a potential customer since each person can use the commodity. Although the transport network in Israel is adequate, bicycles are used in sports and for exercise making it an industry that meets the demand of the present generation which is physical exercise and environmental conservation.
With increasing environmental consciousness and concerns on health, many people are resorting to the use of bicycles (Daley, 211). Bicycles do not pollute the environment by production of greenhouse gases (Omer, 2262). They also provide opportunity for exercise as well as an alternative means of transport. Due to traffic snarl ups and problem of parking, bicycles remain one of the best means of transportation (Mahmud et al, 112). Many cities like Tel Aviv are incorporating cycling paths in their urban planning and consider cycling as an environmentally friendly means of transportation (Washburn et al., 1). The bicycle market in Tel Aviv therefore includes both the working class who will be using bicycles to go to work and the non-working class who will use it for recreation (Lyons et al., 181).
Location
Israel is a relatively small country and Tel Aviv is the most populous city and suitable for bicycle business (Martens et al., 326). The city has a large population that includes children, youth and adults who are all major users of bicycles. This industry will also be useful to the education sector in which those who are going to school as well as work will be able to arrive in time as they avoid traffic jam by using bicycles. JETTA cycle will target the entire population in Israel by having retailers in various parts of the city.
Bicycle business in Tel Aviv can be located in places like Levinsky Street, HaNevi'im Street, HaHashmonaim Street and Frishman Street. There are several bicycle shops as well as repair workshops and having a bicycle industry along these streets can be better because the streets are known to have the commodities. Since JETTA cycle will take care of all the three layers in the industry, there will only be one point for manufacturing while distribution will be done by few companies but attempts will be made to ensure that there are retail shops in the major streets especially those that already have bicycle shops in order to utilize the huge customer base which has already been created by the other shops.
Some bicycle stores in Tel Aviv specialize in the kind of products that they sell to consumers (Tractinsky, et al., 1). For example, Oz bicycles in Levinsky Street deals exclusively in electric cars and do not sell the conventional cars. JETTA cycle will be one stop store for all the bicycle needs in Israel. It will ensure that consumers get what they want where they want it. Currently, it is estimated that there are over 250,000 electric bicycles in Israel. This is a large number owing to the population of Israel as a country.
Setting up a bicycle shop requires a place with human traffic and a population with good purchasing power. Tel Aviv is the most reliable city when it comes to the sale of bicycles (Price, et al., 58). Currently, there are several shops dealing in the sale of bicycles and the spares. There are also people who service the bicycles at a fee and repair the ones which are worn out. JETTA cycles will set up stores in the major streets in the city and a few points for distribution of the goods as well as the services offered by the industry.
Owing to the nature of the industry, JETTA cycle will have stores which will be located in all the major streets in Tel Aviv city. The manufacturing point will be a way from the central business district in order to save on the rental facilities. This is because, the further away from the central business district, the lower the rent. Sores will be set up at each of the major streets so that customers will be able to access the bicycles as they approach the city centre from whichever direction.
Marketing plan
JETTA Cycles will be a bicycle industry that will specialize in the satisfaction of all bicycle needs. The company will specialize in production, retailing, repair and distribution of bicycles in Tel Aviv. The immediate market for bicycles are the people living in Tel Aviv town. Since this is the major city in Israel, it is expected that buyers will come from all over the country to purchase commodities from the city. Both male and female are potential customers for bicycles as the commodities are used by both sexes indiscriminately. This is to mean that there are no bicycles which are meant for men and those that are used by only women. There will also be designs to take care of the young ones especially children who used it as play objects.
Marketing is an important aspect in business. It is necessary to conduct trade shows to display the products which are available in the industry. Trade shows are among the best advertising initiatives for companies. For example, participating in national trade shows can inform people from all over the country about new products which are in the market (Nelson, 19). National trade shows brings together people from different places. Furthermore, in a national trade show, there can be a demonstration on the operation of particular products giving customers opportunity of knowing the true value of a product. There are many international trade fairs organized in Israel annually. Conducting such shows annually is an important marketing strategy.
Bicycle advertisements in print media and televisions is a good way of informing the target audience about the available bicycle products (Lichtenthal et al., 236). Television is still one of the most important media for marketing (Keller 139). Both children and adults watch television and television is used by both the poor and the reach. This means that advertisements made on television reach out to many potential bicycle customer. Televisions builds brands and keep them in the mind for a longer period of time. It has been observed that brands advertised on TV remain relevant for a longer period of time. Reports have indicated that TV adverts are useful in short, medium and long term.
In this digital era, creating a website that will display the products, indicate the directions and the services available at what locations is one of the best ways of marketing the bicycle industry (Belk, 1595). Furthermore, many people are now hooked to electronic devices ranging from mobile phones to lap tops. The online life of individuals has increased significantly in the recent past and having an active website or creating social media platform gives customers opportunity to interact closely with the consumer. Posting nice pictures of bicycles on social sites and suggesting where customers can find them will work especially for the youthful population. New arrivals, bicycles for special needs and other products that promote the brand will be pictured and put in social sites for customers to see. Feedback from customers will also be used as a marketing strategy.
Additionally, being one of the commodities used in sports, organizing competitions in which various models of bicycles are used is also a way of promoting the business (McGrath, 247). Sports activities attract both the young and the old. Such activities will be organized by JETTA cycles to reach out to customers in schools and colleges as well as those who are out of school. Competitions will be organized for schools and colleges and trophies presented to the best schools and certificates presented to the individual winners.
Bicycle market in Israel can be divided into various segments. There is the market share who are the individual customers. Individual customers range from young children to adults as bicycle is used by people of all ages. There can also be distributors in case a manufacturing industry is established. Such customers may help in distributing the commodities and ensure that they reach the intended customers. Israel is one of the most economically stable countries and it is believed that they have high purchasing power and can afford to purchase bicycles. JETTA Cycle will ensure that bicycles reach all the intended customers in Israel and will also ensure that the bicycles are serviced and maintained.
As a marketing strategy, JETTA bicycle will conduct awareness sessions in order to pass information to the members of the public about the commodities which are being sold by the company. After creating awareness, the company will develop a customer base and work to ensure that the customers are maintained. Sensitization sessions will be held in public gathering and workshops conducted for the retailers to inform them about the new products in the market. It will also be necessary to ensure customer loyalty through engaging the repeat customers both for service and purchase of the bicycles (Rust et al., 193).
JETTA cycle will ensure that distributors are maintained through relationships, deals and through trade shows. Distributors are important in the marketing chain as they take products in large quantities and are able to sell to retailers who will eventually get the products to the intended customers. The bicycle industry mainly consist of the retailers, manufacturer and distributors. All the three layers are important in the industry and have to be well taken care of for success. JETTA cycle will have a complete set of the bicycle industry having all the three layers of the business.
In Tel Aviv, there are several shops that deal in bicycles including bicycle spares and repairs (Beroud " Anaya, 269). The JETTA cycle will deal with the competitors through effective marketing. For example, Puncher TLV sells bicycles and owns a garage that repairs the bicycles. In their marketing strategy, the bicycle store holds competition for riders monthly which brings together most of their customers. JETTA cycle will also maintain a close contact with the consumers, distributors and the retailers. For consumers, promotional competitions will be held either monthly or quarterly. Distributors and retailers will be rewarded greatly depending on the number of traded items to encourage their participation in marketing.
JETTA cycle will work to ensure that they become the solution for the bicycle needs in the city of Tel Aviv. Since there are already many stores dealing in bicycles in Tel Aviv, JETTA will offer the best prices that will enable the retailers to have huge profit margin. Additionally, the company will ensure that the consumer prices are affordable and the repairs are done without at minimal fees. Marketing options such as after sale services will be given to the customers to ensure that the customers are attracted to and remain loyal to the company (Rust et al., 193).
Suppliers who provide the materials used for the manufacture of the bicycles will be maintained by establishing a cordial relationship through effective payment of the supplied goods and confirmation of the quality of goods supplied before the payments are made to prevent the occurrence of carriage outwards.
The manufacturing will take care of the current needs of the consumers as well as the changing technology. For example, many people currently prefer electric bicycles which are being referred to as e-bicycles. The industry will ensure provision of such in order to satisfy the needs of the customers. E-bicycles are fun to the youth and can as well be used by the elderly. JETTA bicycle will ensure that they trade in such commodities.
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