Marketing Communications Proposal – Lit Motors C-1 (2016)

University of College Dublin

Bachelor of Business Studies (Singapore)

Marketing Communications & Digital Marketing

(MKT3004S)

Assignment 2

Marketing Communication Proposal – Lit Motors C1 (2016)

Name: Abigail Catherine Yang Wenjie

UCD Student ID: 14208093

Class/Batch: FT UCD BBS 22 Marketing

Submission Date: 23rd Dec 2015

Lecturer: Mr Jason Tan

Marketing Communications Proposal – Lit Motors C-1 (2016)

Table of Contents

Page No. 1.0 Target Audience Profile 1 2.0 Communication Objectives and Evaluation 2 3.0 Positioning Statement 4

3.1 Competitive Advantages 4 3.2 Customer Appeal 4

4.0 IMC Tools Recommendations 4

4.1 Advertising 4 4.2 Digital Marketing 8 4.3 Public Relations 9

5.0 Budget Allocation 11 Reference List & Bibliography 12 Appendix A – Singapore Land Transport Statistics In Brief 14 Appendix B – IMC Activities 14 Appendix C – C-1 Estimated Selling Price In S’pore 15 Appendix D - Advertising Rates for Top Car Magazines 15 Appendix E – Cost of App 16 Appendix F - Mediacorp OOH Promotion 16 Appendix G – TODAY online 17

Marketing Communications Proposal – Lit Motors C-1 (2016)

1.0 Target Audience Profile Table A below summarizes our target audience profile.

Main dimension

Segmentation variables Typical Breakdowns Sources

Customer characteristics

Geographic Region Island wide

Department of Statistics Singapore, (2015)

Audience Size 2.54 million Density High

Demographic

Gender Male and Female Age 24 yr old to 50 yr old Race Chinese, Malay, Indian & Eurasian Life stage Single & Married without Kid Birth Era Late Gen X, Gen Y (Millennials) Household size 2 Residence tenure Rented or owned

Marital status Single, Married without kids, divorced, widowed

Customer characteristics

Socioeconomic Income $30,000 and above per annum Kail, (2015) Education Diploma & above MOM, (2015) Occupation White collar workers range

Psychographic

Personality Image conscious, highly creative, possess positive energy, look towards better living Roy Morgan

Values Segment Motives Socially aware Lifestyle (hobby)

Outdoor activities that imposes challenges

Buying Situations

Outlet Type In-store Cycle & Carriage (Distributor)

Lit Motors Corporation, (2015)

Direct order via company website

Benefits Sought (Customer)

Product features

Auto-balancing fully electric operated enclosed motorcycle with car amenities

Needs Price and value

Usage

Usage rate Daily

Land Transport Authority of Singapore, (2015)

Usage status 1) Owns existing vehicle & wish to downgrade 2) no ownership of any vehicle

Awareness and Intentions

Product knowledge Unaware as C-1 is a new product

Behaviour Involvement mid-high, tend to compare product benefits between car and motorcycle

Table A (Self-drawn)

Marketing Communications Proposal – Lit Motors C-1 (2016)

Our research and studies on the changing demographics of Singapore shows majority of

the Gen X and Gen Y prefer to own their owned vehicle. (Refer to Appendix A) Such

desire is driven by their need to satisfy and pursue their social status recognition and the

sense of asset ownership. But due to the Government’s interference to control the car

population, they started to impose high COE price, which makes it not possible for many

to buy and maintain a car in Singapore. (Adrian, 2015)

Such situations actually open up another new market entrant for us to bring in C-1, a

“mini version of a car in a size of a motorbike” because the cost to buy and maintain is

definitely cheaper than a car.

2.0 Communications Objective & Evaluation

To market a new product like C-1, we need the target audience to know and like it before

any sales closure take place. Using the AIDA attitude progression model, this will be our

strategy to link our marketing objectives and achieve the hierarchy of effects. Table B illustrates the progressive stages, SMART objectives and evaluation metrics used.

Table B (Self-drawn)

Marketing Communications Proposal – Lit Motors C-1 (2016)

Attention: Focusing on 500,000 which is about 20% of the 2.54 million target audience, we aim to achieve brand+product recognition and brand+product recall of Lit Motor

C-1 and attract their attention within a 1 year time frame. as we believe setting realistic

target audience size optimizes our objective, allows us to focus and facilitate better

communication to lead interested parties to find out more.

Interest: Within the same year, we estimate about 100,000 intended target audience,

20% of the 500,000 to respond with interest and make further enquires. Interested

parties aroused by the persuasive impact tend to show likelihood of purchase intent and progress to the “desire” stage.

Desire: Using a 6% conversation rate from 100,000 interested target audience, we are

expecting about 5,800 of them to respond and display purchase intention by placing refundable deposits within the same year. However that does not imply their

purchase decision.

Action: Ultimately, we expect to achieve target sales quantity of 276 units of C-1

electric motorcycles within the same year. This sales figure is computed based on a 5% conversion rate from the 5,800 intended target audience who placed deposit for the

product.

To achieve sales of 276 units, on average there needs to be 23 sales closures every

month. The estimated sales projection is based on 3 assumptions; product innovation,

value pricing and experiential benefits. According to LTA, (2015) Nonetheless, we

believe after C-1 official launch, more sales order will come in because by then, C-1

motorcycles will be seen on the roads and customers who showed interest and desire

previously are likely to reconsider their purchase decision.

Marketing Communications Proposal – Lit Motors C-1 (2016)

3.0 Positioning Statement

3.1 Competitive Advantages

.

3.2 Customer Appeal

4.0 IMC Tools Recommendation

Our message is to let our target audience know about our C-1 official launch event, to

use stimulation as the leverage point and multiply response. To achieve that we will

adopt the affective-conative-cognitive attitude formation sequence. Here is a brief

description of the plan:

1. Inform: C-1 event launch date, duration, time and location via advertising Medias

and digital marketing platforms

2. Spread the message: C-1 “Early birds” who register and turn up on Day 1 stand

a chance be among the 50 lucky ones to experience “Riding in a driven car” in

Singapore for the first time.

-

-

-

Manoeuvred by a steering wheel similar to car but its two-wheeled motorized platform allows it to twist around corner like a motorcycleProtection with enclosure like a car to allo “riding” comfortably via its auto gyro self-balancing system ensuring it will not fall

“mini version” of a car on 2 wheels equipped with basic car amenities like seal belts, air condition and entertainment system

As C-1’s positioning is based on its product attributes, value-pricing and

experiential benefits, we shall position it as “Riding In A Driven Car”

We want create a user imaginary that symbolises the experiential benefit it can

bring to the driver. Our positioning statement aims to create imaginary perception of “Driver gets to enjoy the moving angle of motorcycle without the

need of strength in handling it and the instant torque of acceleration from an

electric motor” link that up with the “feel good” experiential benefits of owning it.

The role of marketing is to facilitate selling through the application of marketing mix

strategies using various marketing tools. As such, we shall focus on the use of

advertising and digital marketing tools as the “drivers” to deliver, support, trigger

response and achieve the maximum effect for our main PR campaign.

Marketing Communications Proposal – Lit Motors C-1 (2016)

3. Reinforce message: Interested parties who turns up on day 2 & 3, only gets to

experience “Riding in a driven car” as a passenger upon placing deposit

To enable better understanding of the series of activities we have planned; please refer to Appendix B for reference.

4.1 Advertising

Through advertising, we aim to achieve the following objectives:

- Informative: create brand awareness, knowledge of product features

- Persuasive: create liking, preference and conviction and purchase action

The MECCAS advertising framework used will be based on the Means-end theory 1. Value orientation – Hedonism, enjoy benefits of a car in the size of a bike at lower

cost

2. Brand consequences – Freedom to enjoy the moving angle of motorcycle &the

instant torque of acceleration from an electric motor

3. Brand attributes – Unique unforgettable “Riding In A Driven Car” experience

4. Creative strategy – Mediacorp Radio personality, DJ Justin Ang will be the invited

emcee to host the event. The Minister of Environment and water resource ‘Mr

Masagos Zulkifli and Justin Ang will be the first 2 persons to kick start test riding

C-1

5. Leverage point –Value of a 2-wheel self-balancing “mini car that cannot fall” at a

price more affordable than a conventional car cost and environment friendly.

Achieved the triple bottom line too

1. Transit advertising: According to LTA, (2015) statistics shows the average daily

ridership of passengers taking MRT is 2,762,000 and average daily ridership of

passengers taking bus is 3,751,000. For this reason, the use of Bus Ads and MRT

ads as the advertising media to draw attention and create brand+product

awareness remains popular in many industries. There is no guarantee that every

passenger will notice or read the bus ads or MRT ads, but surely its 1 of the best

way to reach target audience who do not own their own vehicles because

essentially they need to travel to and fro through these modes of public transport.

Marketing Communications Proposal – Lit Motors C-1 (2016)

In terms of capturing attention and cost, it is definitely cheaper and its reach will

definitely be more effective than using TV’

Why is it appropriate? - Fits into the 2nd group of our usage status target consumer profile

- These people DO NOT own any existing vehicle therefore taking public

transport is definitely part of their usual daily routine

- This media vehicle allows us to achieve the reach, coverage and frequency

elements and achieves cost effectiveness.

Attention: Using these Medias via the pulsing scheduling method to create awareness

among target audience, draw attention to brand+product recognition, brand+product

recall impact and inform them about the official launch.

Interest: In the course of advertising, apply unique selling proposition and classical

conditioning strategy such as continuous exposure of our ad message, to arouses interest of target audience and lead them to contact us to make enquiries. Modes of

contact such as hotline number, email address, website, social media platforms and QR

code will be written on or mentioned in the ad.

2. Radio advertising- Radio ad is typically one of the low-cost yet effective

traditional media, specifically targeting existing car owners. CNA, (2015) reports radio listenership remains strong especially for those who listen while driving. Different radio station targets different audience. Based on the lifestyle,

personality and preferences the target profile, we chose the highest listenership

English radio station Class 95 and highest listenership Chinese radio station

LOVE97.2 as our media choice. The radio ad duration is 30 seconds and we

believe the key points and message we wish to convey can be achieved.

Why is it appropriate? - Radio ads are targeted at those who currently own a car and wish to

downgrade.

- Radio ads are still popular today because of its reach and cost effectiveness

Marketing Communications Proposal – Lit Motors C-1 (2016)

- Evolution of technology allows digital radio streaming to reach more people

anywhere, anytime.

Attention: Asia Radio Today, (2015) shows Class 95FM as the top English radio

station with a listenership of 16.2% and LOVE 97.2FM as the top Chinese radio stations

with a listenership of 20.2% all stations. Out of these listeners, majority are drivers. It

means to say through radio ads, we can catch their attention Interest: In the midst of hearing the radio ads, target audience probably gets curious and

wants to find out more about C-1 because in the ads, information of its product attributes,

value pricing, experiential benefits and modes of contacts will be mentioned. Through

classical conditioning of repeating our ads, we will arouse their interest to response.

3. Torque & Top Gear car magazine- Advertise in specific-theme magazine

displays better quality images of C-1 and provides specific information which cannot be

found on ads and radio ads. Providing information helps our target audience to

understand the product better.

Why is it appropriate? - Highest readership in automobile segment

- Instant reach to specific target audience

- Detailed information of C-1 allows target audience to know and understand its

functionality and features.

- Chances of converting interested target audiences to “desire” stage is higher

Attention- As mentioned, only “car and motorbike” lovers will buy specific-theme car

magazines. The objective of these readers are actually to get first hand information about

anything in the automobile industry thus by advertising C-1 in such magazines, we have

already caught their attention because C-1 is new, C-1 is unique, C-1 is a “mini-car in

the size of a bike”, all other info can be found.

Marketing Communications Proposal – Lit Motors C-1 (2016)

Interest- Once we got their attention, they can refer to the various channels we have for

them to contact us for further enquiries and even pre-register their attendance for the

official launch as invites.

4.2 Digital Marketing

According to reports from Digital Influence Lab, (2015) Singapore has the highest

internet penetration rate of 80% in Asia and at least 96% of the population own a social

media account. The evolution of digital technology has made marketing easier than

before because the number of people we reach via digital marketing platforms has

proven to be low cost, fast and efficient. As such, the use of DM will be to support and

reinforce on our advertising Medias.

Attention: Our purpose of digital marketing is to reinforce product and brand awareness, and further stimulation of prospects’ attention and interest towards C-1.

Interest: Through the various digital media platforms such as YouTube’s video clips to

see the actual product functions, FB and Twitter updates on their pages, App which

allows them to experience C-1 game specially designed to let target audience have a

“feel” of the virtual product and create “desire” to buy the real thing.

Social: Twitter, Face Book:

Paid: Google AdWords: It allows advertisement on website as it will appear on Google search

as well as anything related to the key words such as lit motor. It is not as costly as it is

Marketing Communications Proposal – Lit Motors C-1 (2016)

charged by per click so even if consumers never click on the link, it will still create a sub

conscious image in their mind that there is a existence of this product, which is also a

form of awareness.

TODAY online: Monthly visitors (web+mobile) 1.3 million, monthly page view

(web+mobile) 21.1 million, social media followers of TODAY online is 219,000, thus

through this platform, if we are able to advertise by providing images, some product info,

PR event details to reinforce awareness of our PR event

Mobile Application (Social+Owned): An application (APP) created for target audience

who use the QR code found on the different ads, download on their smart-phone. It will

be an APP for consumer to sign up and know more about the product and play mini

game with C-1 to experience and feel the virtual product.

4.3 Public Relation

Public relation is our main focus for the entire campaign, to convey C-1 unique features

such as it’s electric powered modular which represents an innovative start in protecting

the environment without creating additional greenhouse gas and saving land space as it

is relatively smaller in size compared to cars. Through PR events, we aim to achieve 2

purposes:

1. Instil confidence to public and target audience about C-1’s various product

attributes and the experiential benefits to consumer.

2. Perform corporate social responsibility by advocating environmental friendly

products

Event Highlights:

• Official C-1 launch live event held at Suntec City from 10th Jun to 12th Jun 2016

• Mediacorp Radio Personality DJ Justin Ang to introduce the Guest of honor will be

Singapore Minister of Environment and Water Resource ‘Mr Masagos Zulkifli’

• Start with a brief introduction about Lit Motors and its milestones

• Followed by talks about land spaces and greenhouse gas effect happening

around the world

Marketing Communications Proposal – Lit Motors C-1 (2016)

• Only Pre-registered invites will get to feel and touch the C-1 first hand on the first

day.

• Members of the public will also get to feel, touch and experience C-1 upon deposit

received

• This is an open event so all are welcome to join on the 2nd and 3rd day

• Monthly Newsletter will also be available via our websites and emailed to the

invites to keep them updated about lit motor c-1 status and their involvement in

the society on mobile app. This will ensure desired interest in purchasing and

owning C-1.

5.0 Budget

The estimated selling price of C-1 in Singapore inclusive of GST is about $30,784 (Refer to Appendix B) Total revenue to achieve 150 sales closure of C-1 Motorcycle within 1 year assuming

Total sales (excluding road tax) S$9,235,170 (=300x30,783.90)

Marketing budget is set at 15% of sales revenue will be translate as

Marketing budget S$1,385,280 (=9,235,170x15%)

Task and objective method is an ideal budget setting method that allows us to set aside

the projected marketing expenses. After reviewing the activities, we still had a surplus.

Attention: The launch event will create attention and increase the credibility of Lit-Motor

to enter the market, build up its brand equity through its triple bottom line concept.

Interest: The respondents’ who turns up already shows their interest by either pre-

registering or walk-in.

Desire: Through the idea of letting end users have a chance to experience and have a

feel of “Riding In A Driven Car”, we hope to stir up their desires and motivate them to

leave down deposit for pre-ordering.

Action: After the test-driving during the official launch, we believe that our ultimate sales

target of selling 300 units of C-1 can be achieved within 1 year. in building a stylish,

Marketing Communications Proposal – Lit Motors C-1 (2016)

Marketing Communications Proposal – Lit Motors C-1 (2016)

Reference List and Bibliography

Adrian, L. (2015) ‘Spike in motorcycle COE prices due to a quota shortage’, Straits Times, 24 April. Available at: http://www.straitstimes.com/singapore/transport/spike-in-motorcycle-coe-prices-due-to-quota-shortage [accessed on 20 Nov 2015]

Anna, T. (2014) How Much Does Advertising On YouTube Cost. Available at:

https://www.quora.com/How-much-does-advertising-on-YouTube-cost [accessed on 20

Dec 2015]

Asia Radio Today (2015) MediaCorp Stations top Singapore’s latest Nielson survey. Available at: http://www.asiaradiotoday.com/news/mediacorp-stations-top-

singapore%E2%80%99s-latest-nielson-survey [accessed on 14 Dec 2015]

Channel News Asia Singapore (2015) ‘Class 95FM is most-listened English language radio station: Survey’, Channel News Asia, 2 July. Available at:

http://www.channelnewsasia.com/news/entertainment/class-95fm-is-most/1955952.html

[accessed on 20 Dec 2015]

Digital Influence Lab (2015) Singapore Digital Marketing Statistics. Available at:

http://digitalinfluencelab.com/singapore-digital-marketing-stats/ [accessed on 20 Dec

2015]

Facebook (2015) How much does it cost to advertise on Facebook. Available at: https://www.facebook.com/business/help/214319341922580 [accessed on

20 dec 2015]

Google Adwords (2015) Google Adwords. Available at:

https://www.google.com.sg/adwords/costs/ [accessed on 13 Dec 2015]

How Much To Make An App (2015). How much to make an app. Available at:

http://howmuchtomakeanapp.com/estimates/results [accessed on 20 Dec 2015]

Jing Yi, H (2013). ‘MediaCorp stations tops ratings yet again’, TODAY, 30 Nov.

Available at: http://www.todayonline.com/entertainment/music/mediacorp-radio-stations-

top-ratings-yet-again [accessed on 17 Dec 2015]

Land Transport Authority of Singapore (2015). Singapore Land Transport Statistics In Brief 2015. Available at:

https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigu

res/Statistics%20in%20Brief%202015%20FINAL.pdf [accessed on 10 Dec 2015]

Marketing Communications Proposal – Lit Motors C-1 (2016)

Marketing Interactive (2015) Motor Vehicle Magazine of the Year. Available at:

http://www.marketing-interactive.com/features/magazine-year/ [accessed on 20 Dec

2015]

Mediacorp (2015). Current Promotions - Rate Cards for OOH Media. Available at:

file:///C:/Users/acer/Downloads/OOHMediaRateBookNov2015_20151125143527.pdf[acc

essed on 15 Dec 2015]

Mediacorp (2015). Current Promotions – Rate Cards for Radio Ads. Available at:

file:///C:/Users/acer/Downloads/151015RadioRateBook_20151015162720.pdf

Mediacorp (2015). TODAY online brand display package. Available at:

https://www11.mediacorp.sg/promotions/list/packages [accessed on 15 Dec 2015]

Moove Media (2015). Moove Media 2016 packages. Available at:

http://www.moovemedia.com.sg/wp-content/uploads/2015/11/MM-2016-PACKAGE.pdf

[accessed on 15 Dec 20150

Northstar Travel Media (2015) Suntec Singapore Intl Convention & Exhibition Centre. Available at: http://www.meetings-conventions.com/Meeting-

Facilities/Singapore-Singapore/Convention-Center/Suntec-Singapore-Intl-Convention-

Exhibition-Ctr-p2021774 [accessed on 14 Dec 2015]

Penna, P. (2014) How Much Do Ads on Twitter Cost?Available at:

http://www.pennapowers.com/how-much-do-ads-on-twitter-cost/ [accessed on 12 Dec

2015]

SPH Magazines (2015). Torque – Singapore’s Premium Home-grown Car Magazine. Available at: http://www.sphmagazines.com.sg/magazines/torque [accessed on 15 Dec

2015]

Singapore Press Holdings Limited (2013). SPH Media Pedia Rate Book. Available at:

http://www.diseno.com.sg/wp-

content/uploads/2013/pdf/sph_apr2013/RateBook_24April2013.pdf [accessed on 15 Dec

2015]

Marketing Communications Proposal – Lit Motors C-1 (2016)

Appendix A – Singapore Land Transport Statistics In Brief

Appendix B – IMC Activities

Motor Vehicle Population 2013 2014Cars (1600cc & below) 540,063 536,882

Other cars (above 1600cc) 83,625 82,141

Motorcycles 144,934 145,026

Annual Average Quota of COE Premuim 2013 2014

Cat A (Cars,1600cc & low) $ 74,690 $ 67,675 Cat B (Cars,1600cc above) $ 78,712 $ 73,282 Cat D (Motorcycles) $ 1,757 $ 4,027

2013 2014No. of new vehicles registered 45,761 55,588No.of vehicles de-registered 41,501 57,721

(Self-drawn) Source. LTA (2015) http://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsResearch/files/FactsandFigures/Statistics%20in%20Brief%202015%20FINAL.pdf (accessed on 15 Dec 2015)

Self-drawn

Marketing Communications Proposal – Lit Motors C-1 (2016)

Appendix C – C-1 Estimated Selling Price In Singapore

Appendix D – Advertising Rates for Top Car Magazines

AD Size Wheels Asia

Top Gear S’pore

Torque Hot Stuff Autocar Asean

Hyper Tune

Inside Front Cover

$4,200 $15,000 $10,000 * * (IFCS) $5,700 NA $2,357

Inside Back Cover

$3,850 $7,000 $5,000 $5,700 NA $2,142

Outside Back Cover

$5,250 $9,000 $7,500 $7,600 NA $2,789

Double Page

Spread $5,600 $10,000 $7,200 $7,500 $7,220 $3,428

Full Page $3,500 $4,250 $4,500 $3,800 $3,800 $2,014 Half Page $2,100 $2,500 NA $2,000 $2,850 NA

Series Discount (Best Car Magazine –Proposed)

4 x 8x 12x 10% 20 to 25% 30% Source: Best Car - Top 6 Magazines AD Rates.doc [accessed on 20 Dec 2015]

The YouTube clip on the left illustrates C-1’s unique “mini-car like motorcycle that cannot fall.

Self-drawn. Source. http://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/owning-a-vehicle/costs-of-owning-a-vehicle/tax-structure-for-motorcycles-and-scooters.html [accessed on 12 Nov 2015]

Marketing Communications Proposal – Lit Motors C-1 (2016)

Appendix E – Cost of App

Appendix F – Mediacorp OOH Promotion

Appendix G – TODAY online

Marketing Communications Proposal – Lit Motors C-1 (2016)

Appendix G – TODAY online