International Marketing Strategies of E-Bike Brands: A Comparison

This report provides a comparative analysis of the international marketing strategies employed by two e-bike brands, Dillenger and Bosch. The analysis encompasses market opportunity analysis, market segmentation, market diversification, and positioning strategies. The report examines the target customers, marketing mix, and consumer behavior in the UK and US markets. It explores demographic and lifestyle segmentation variables to understand the brands' approaches. The report highlights the key differences in their marketing strategies, focusing on how each brand adapts to the unique preferences of consumers in different countries. The conclusion summarizes the effectiveness of these strategies in achieving market fit and meeting customer requirements within the growing e-bike market. The report also includes a detailed discussion on the marketing mix of both brands.

Running Head: International Marketing 1
International Marketing of E-Bike Brands

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Executive Summary
This report discusses about the international marketing practices of two different brands
of E-Bikes. The report will basically compare and contrast the positioning strategies of both the
brand. For the discussion, Australian company Dillenger and German company Bosch will be
selected. Customers in different country have different taste and preferences. Both the companies
have to adopt various types of strategies and tactics in order to stay competitive in the market.
The report will compare both the brands based on market segmentation, market diversification;
positioning and market fit requirements and various segmentation variables. Based on the
analysis, segmentation and positioning responses based on the market fit process for both e-bikes
brands will be developed.

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Contents
Introduction......................................................................................................................................4
Comparison......................................................................................................................................5
Market opportunity analysis.........................................................................................................5
Market segmentation....................................................................................................................6
Market diversification..................................................................................................................6
Positioning and market fit requirements..........................................................................................7
Target customers..........................................................................................................................7
Marketing mix..............................................................................................................................7
Consumption and purchasing patterns.........................................................................................8
Segmentation requirements.............................................................................................................8
Demographic variables................................................................................................................8
Lifestyle segmentation.................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
This report compares and contrasts two E-Bikes brands based on their effective
marketing segmentation and product positioning techniques in the international market.
International market is the process of doing business across the national borders by the
companies. In the global marketing, it is crucial to understand how the products are perceived by
the customers in the new market (Laker, 2017). For the discussion, Australian E-Bike brand
Dillenger and German E-Bike brand Bosch is selected. Both the companies have expanded their
businesses in the overseas market. Key objective of the report is to develop the segmentation and
positioning responses based on the marketing fit design process for these two brands of E-Bikes.
The comparison in the report will be done based on market opportunity analysis for both the
companies in the different countries including market segmentation and market diversification.
Along with this, positioning and market fit requirements i.e. target customers, marketing mix and
consumption and buying patterns will be considered. At last, segmentation requirements will also
be considered for both the companies. The brief description of both e-bike brands is as follows:
Dillenger Pty Ltd -
Dillenger Pty Ltd started its operations in 2007 as a company in Queensland, Australia.
With the quickly developed production models, company has sustainable growth in the
Australian market. New technologies in the electric bikes and intelligent motor controllers are
the reason of huge improvements in the quality and reliability of electric bikes. Due to the
reduction in the cost of electric bike components, the sales of e-bikes have enhanced. The market
of Dillenger has improved in the last 3 years and its products are now sold in all over the world
(Dillenger Pty Ltd, 2017).
Bosch E-Bikes Systems-
Famous e-bike company Bosch started its operations in 1951 in Germany and now it has
a strong presence in the market. In current time, company has over 70 leading bike brands in all
over the world. Company provides high quality, powerful and reliability drive units along with
durable batteries that make e-bike successful. Bosch E-Bikes Systems is working on the future of
mobility and economic and ecologic sustainability. The company has around 10,108 associates

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and it has strong service network to ensure widespread availability of both products as well as
services (Bosch, 2018).
Comparison
Australian E-Bike brand Dillenger is famous company among the Australian consumers
and the company has expanded the business in the UK market. On the other hand, German E-
Bike brand Bosch has expanded its business in the US market. There are some factors that can be
analyzed while comparing these two E-Bike brands.
Market opportunity analysis
Dillenger-
Australian E-Bike brand Dillenger has expanded its business in the UK market. There are
various market opportunities in the country for the growth and development of E-Bike business.
The UK Electronic bike market is one of the developing markets for the overseas companies.
The total e-bike market in UK is estimated to be worth £1.5 billion. The market is growing by
around 5% per year that is beneficial for the company Dillenger. Along with this, the sale of new
e-bikes is estimated to be £800 million and this data reveals that the Dillenger will have hike in
the sales in UK market. Dillenger has opportunities to grow in the market as the UK bike market
is highly fragmented (Peace, 2017). There are various market growth opportunities in the e-bike
market for the overseas companies:
 Despite of increase in the popularity of sports vehicles, large number of e-bikes are sold
in the country,
 The wellbeing and health benefits are associated with the electronic bikes,
 The government infrastructure investment is high in various cities of UK,
 Rapidly growing electric bike segment in the UK market that makes cycling more easy to
both older generation as well as commuter, and
 Existing consumers are spending more amounts on using electronic bikes (Oortwijn,
2016)
Bosch e-bike systems-

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On the other hand, German E-Bike brand Bosch has expanded the business in US market
due to some market and business opportunities available in the market. The sale of e-bikes is
expected to be doubled in US market. By the expansion in the US market, Bosch has become
leader in the e-bike market. Bosch e-bike systems provide high quality drive system in the e-
bikes (MacArthur, Dill & Person, 2013). In the US market, the electric bikes are growing in
popularity. The continuous trend is enhancing number of electric bikes models and styles. By the
growing trend, Bosch e-bike system is able to set success in the growing market. There are
around 200 million electric bikes ridden today and it is predicted that industry will grow to 2
billion by 2050 (Willem, 2017).
Market segmentation
Market Segmentation
Dillenger Bosch
 Demographical,
geographical, and psycho-
graphical segmentation,
 Middle income families,
and higher income groups
segmentation
 Psychographic,
Demographic and
geographic
segmentation,
 Business to business
segmentation,
 Business to consumer
segmentation
Market diversification
In the UK market, Dillenger is able to maintain its strong position by diversifying its
product and services. For the Dillenger diversification is not as risky as it has launched variety of
e-bikes in the market with its own brand. The products of Dillenger have created the sense of
demand in the UK market o n the launch of new products (Langkos, 2014).
In order to position itself in the US market, Bosch e-bike systems have adopted market
differentiation strategy. Bosch in the UK market diversifies into new products and markets
including the global group and trailer sector. Along with this, Bosch has adopted niche strategy,
mission marketing strategy, diversified its marketing mix and provides cheap products as
compared to its rivals. The company has new and diversified range of e-bikes.

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Positioning and market fit requirements
Target customers
In UK market, target market selected by Dillenger is based on the demographical,
geographical, and psycho-graphical segmentation. The target customers are rural households
deprived of basic electricity, middle income families, and higher income groups who are
conscious for the fitness and contributor to green energy.
On the other hand, target customers by Bosch in UK market are based on various factors
including income, age, region, attitude, behavior and consumption patterns etc. Bosch basically
uses a mix of psychographic, demographic, and geographic segmentation strategies. Company
uses differentiating targeting strategy and targets the customers from automobile companies from
the diversified strategies, professionals and executives and upper-class social group (Ferrell &
Hartline, 2011).
Marketing mix
Marketing Mix Dillenger Bosch
Product Electric cars, electric bikes,
spares like electric bike kit
spares, accessories i.e. safety,
storage and tools
Mobility, industry and trade
services, software solutions
and various vehicles
Price Competitive pricing strategy
in UK market, special
financing options (Keegan,
2002).
Different pricing strategy of
different product category,
competitive pricing strategy is
followed
Place Various stores and logistics
centers i.e. UK warehouse,
UK dispatch, spares inventory
and returns centre
Distribution form independent
Bosch dealers and retailers in
US, Stores and Bosch offices
available in the country
Promotion Personal selling, Advertising
on various media i.e.
television, newspaper and
magazines, publicity by road
Direct approach- Direct
interaction with regular trade
channels,
Media Branding- Local paper,

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show and free trails for the
new customers and credit and
finance schemes
Regional TV channels,
automobile and trade
magazines,
Direct market promotion-
Auto shows, Rally events,
sponsor of local events (Fahy
& Jobber, 2012)
Consumption and purchasing patterns
The buying or purchasing behavior of the consumers for e-bikes in UK and US market
are as follows:
Buying patterns Dillenger (UK market) Bosch (US market)
 Satisfied with the mileage
of electric bikes,
 Satisfied with the sales
after services,
 Buy e-bikes due to its
speed,
 Satisfied with the speed,
power, battery life and
appearance of e-bikes
(Kazmi, 2012)
 Positive attitude towards e-
bikes,
 Buy e-bikes to enhance
cycling frequency,
 Use e-bikes to reduce travel
time,
 Buy e-bikes to replace the
cars
Segmentation requirements
Demographic variables
In the demographic factors, Dillenger focuses on the age, income and occupation of the
customers. In the income factor, company focuses on the high income level customers who are
also contributing to the environmental sustainability. The key segmented group for the e-bikes

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are 18 years and above. All kinds of people are targeted i.e. business people, students, servants
etc (Cateora, 2008).
On the other hand, Company Bosch focuses on the young professionals and students for
the sale of e-bikes. Students are targeted who are living far away from the college campus and
using public transport. Company basically focuses on those students who do not live with their
parents. Along with this, company is focusing on young professionals who travel daily for their
work by the public transport.
Lifestyle segmentation
In the UK market, Dillenger targets the consumers based on the lifestyle segmentation.
The company is targeting upper middle class people with stylish design and looks along with the
affordable prices. Further, company also targets the corporate executives who prefer to travel by
the public transports to reach their work station.
Bosch has targeted family size in the market and in this segment, people of high class,
and high income group are focused by the company. The e-bikes are helpful in the contribution
for the sustainability of the environment.
Conclusion
From the above analysis, it is observed that both the companies are doing well in the
global market. It is analyzed that companies have different marketing and positioning strategies
while operating in the overseas market. The customers in UK and US market have different
preferences and requirements and it is important for the companies to understand those
requirements so that their requirements can be fulfilled by the products and services. Dillenger
and Bosch, both the companies are market leader in terms of fulfilling market fit requirements
for e-bikes. With the increased air pollution in the environment and scarcity of fuels electric
bikes, there is the high demand of electric bikes among the customers and both e-bike brands are
successful in meeting the requirements of the customers in different countries.

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References
Bosch, (2018). Everything about the eBike. Retrieved on 3rd February 2018 from
https://www.bosch-ebike.com/en/experience-ebike/experience-ebike/
Cateora, P.R. (2008). International Marketing (13th). NY: Tata McGraw-Hill Education.
Dillenger Pty Ltd. (2017). Dillenger Electric Bikes. Retrieved on 3rd February 2018 from
http://dillengerelectricbikes.com.au/about-dillenger/
Fahy, J. & Jobber, D., (2012). Foundations of Marketing. (4th). Maidenhead: McCGrawHill
Ferrell, O. & Hartline, M., (2011). Marketing management strategies. New York: South-
Western.
Higher Education.
Kazmi, S. Q., (2012). Consumer Perception and Buying Decisions: International Journal of
Advancements in Research & Technology. Volume 1(6)
Keegan, (2002). Global Marketing Management. IND: Pearson Education India
Laker, L. (2017). Rise of the ebike: how going electric could revolutionise your ride. Retrieved
on 3rd February 2018 from https://www.theguardian.com/lifeandstyle/2017/sep/16/rise-
of-the-ebike-how-going-electric-could-revolutionise-your-ride
Langkos, S. (2014). Marketing Plan with product diversification strategy. Retrieved on 3rd
February 2018 from

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https://www.researchgate.net/publication/265466588_Marketing_Plan_with_product_div
ersification_strategy_Case_study_of_Media_Strom_SA_Athenian_Bedmatress_Compan
y
MacArthur, J., Dill, J., & Person, M., (2013). E-Bikes in the North America: Results from an
online survey. Retrieved on 3rd February 2018 from http://docs.trb.org/prp/14-4885.pdf
Oortwijn, J., (2016). Growth of UK E-Bike Market Estimated at 20%. Retrieved on 3rd February
2018 from http://www.bike-eu.com/sales-trends/nieuws/2016/11/growth-of-uk-e-bike-
market-estimated-at-20-10128028
Peace, R., (2017). Brexit Looms Over UK Market Where E-Bikes Boom. Retrieved on 3rd
February 2018 from http://www.bike-eu.com/sales-trends/nieuws/2017/7/brexit-looms-
over-uk-market-where-e-bikes-boom-10130459
Willem, J. (2017). USA E-Bike Market Doubles in Units and Value. Retrieved on 3rd February
2018 from http://www.bike-eu.com/sales-trends/nieuws/2017/9/usa-e-bike-market-
doubles-in-units-and-value-10131284