Detroit's economy since the crash of 2008 has been steadily rising thanks to new manufacturing companies like Detroit Bikes. Detroit Bikes is an American bicycle manufacturer that wanted to improve direct-to-consumer sales through its e-commerce site. I helped implement search engine optimization strategies and analyzed Detroit Bikes' decision to outsource marketing to Marketing Supply Co. Most of my data came from primary sources. Using accurate cost and interaction data from two online tracking tools, I was able to evaluate the extent to which outsourcing was successful. Furthermore, the decision to outsource marketing to Marketing Supply Co was analyzed through the lens of an Ansoff matrix. The key findings were that this decision was indeed successful as there was an improvement in clicks generated through organic means or user-generated clicks and inorganic means or paid advertising campaigns. However, it was noted that due to the low quantity of products purchased during the time frame, the customer acquisition cost and cost per product sold were high. Likewise, a high bounce rate and low conversion rate of e-commerce was displayed. Due to the short time frame, further research will likely be necessary and recommended. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Additionally, a recommendation to invest in cart abandonment software that reminds customers of products remaining in their carts will not only allow for an additional point of interaction but allow for an increase in the customer database through the provision of emails. Detroit Bikes "believes the streets are best explored on two wheels" was founded in 2011 with the goal of bringing manufacturing back to Detroit. Detroit Bikes produces high-quality American bicycles made from American steel on the west side of Detroit. Detroit Bikes also "assembles, distributes, sources and contract manufactures" for third parties. Currently, “99.5% of bicycles sold in the United States are produced by foreign manufacturers and simply branded by American companies.” By using American labor, American steel, and building high-quality bicycles, Detroit Bikes aims to reduce this number. Detroit Bikes sells its bicycles to the customer in three ways: through its own Detroit retail store, through third-party retail stores, and directly to the consumer through the Detroit Bikes website. However, another major profit stream is large orders of custom bikes from companies like local builder Toll Brothers. Finally, Detroit Bikes also offers bikes specifically made for police departments that are not available for civilian purchase. Due to the nature of the startup, limited capital was spent on marketing activities. However, this has recently changed with marketing outsourcing. Through outsourcing, the main change Detroit Bikes plans to make is marketing to improve customer interaction with the website and ultimately increase sales. This leads me to ask the question: To what extent have outsourced marketing to Marketing Supply Co. and Below-The-Line marketing efforts been aimed at improving customer interaction and sales at Detroit Bikes. The primary research was conducted with pre-compiled data provided by Mr. Pashak. The main data obtained is the online monitoring data of 2017. Furthermore, I will monitor the implementation of thesocial media advertising. To do this I will monitor the change in sales and customer clicks or sessions caused by the social media implementation. In terms of secondary research, Detroit Bikes recently began working with a company called Marketing Supply Co. who will provide all additional customer data and assist in the implementation of Above-The-Line and Below-The-Line (4.1). The validity of my data depends on the information provided by Detroit Bikes. Considering this, there will be some expectation inherentinternal bias. However, it can be assumed that the combination of internal and third-party research will provide valid and credible information. The business tools I will use will help me in my overall goal of evaluating the impact of developing a website forum and implementing social media. I will use an Ansoff matrix (3.3) to determine the risk associated with the decision to outsource marketing and investment in SEO and "web marketing" and its approximate effect on customer interaction. I will also use external benchmarking (5.5) Shinola Bikes vs. Detroit Bikes to get detailed pricing information. Key Findings and Findings The first steps taken when understanding Detroit Bikes were to create a product portfolio to encompass the various bikes and their individual prices. This research was mainly conducted through website data and discussions with Mr. Zak Pashak. Next, I leveraged Google Analytics primary data through a “view administrator” position. Google Analytics is subscription-based software that allows website owners to track interaction data. Data collection began in November 2017 once work began with Marketing Supply Co. This data compared total "sessions" to sessions that made a purchase which was displayed as approximately 131 users. Likewise, it was necessary to identify the medium through which customers were attracted. E-commerce conversion rate refers to the “percentage of visits that resulted in an e-commerce transaction”. In the case of Detroit Bikes this value is equal to 0.85%. The time frame of the paid advertising campaign corresponded to the peak of sessions on the social media platform. Furthermore, for all users, the largest interaction channel was social with 31.2%, followed by display with 23.5%. Analysis and Discussion The primary implementation during the time period was Below The Line promotion through targeted social media ads and search engine optimization to drive the Detroit Bikes website to increase sessions and decrease frequency of rebound. The product portfolio allowed me to realize the scope and price range of the products and the value that could be gained from marketing below the line low priced options or limited edition models through images on Facebook and Instagram. Additionally, this portfolio allowed for benchmarking against Detroit Bikes' main competitor, Shinola Bikes. One of the key competitive advantages to market was undercutting the price range of Shinola Bikes. Detroit Bikes prices range from (C-Type) $599.99 to (Cortella) $799.99 and Shinola Bikes prices range from (The Detroit Arrow) $1000 to (The Runwell) $2950. This reveals that even more expensive Cortello or limited edition models are about $200 less. This price point provides Detroit Bikes with a competitive advantage and allows "Detroit brand focused" customers a lower priced product with no effect on quality. This idea was at the centerof paid advertising campaigns recently during the holiday season. By identifying one or a few focus areas, the marketing team was able to set themselves up for success as a narrow scope allows for more effective advertising. From the primary analysis, it is important to note that Google Analytics began tracking after November 13, 2017. November 13 is also the date Marketing Supply Co. began implementing SEO, page tracking, and targeted ads on Facebook. The first basis for discussing marketing outsourcing is through the Ansoff matrix. Detroit Bikes operates in the Midwest through its own retail store and has a national reach through third-party specialty bicycle dealers. They have 6-7 bikes on offer (depending on the limited edition models) that they have been producing since the beginning. Outsourcing is a low-risk strategy that Detroit Bikes can use to improve the effectiveness of selling existing products in existing markets. Market penetration is achieved through outsourcing to Marketing Supply Co. Another nonspecific research strategy is the medium-risk strategy of market development through an increased third-party retail network. Additionally, they revamped their direct-to-consumer e-commerce site. A recent sale also increased marketing spending capacity. An ongoing effort at Detroit Bikes aims to continue bringing in third-party dealers to enhance the nationwide network. The most useful data to answer the question is interaction data. The main means of interaction is "social", with 31.2% of clicks coming from Facebook/Instagram. This growth can be attributed to a more targeted social media advertising strategy. The second largest category is “display” at 23.4%. Generally it can be assumed that these two categories have seen the most growth thanks to outsourced marketing efforts. Originally, the only marketing activity Detroit Bikes was involved in online was posting images, web links and information. Detroit Bikes has 13,000 followers on Instagram and recently began taking advantage of the "one-click shop feature." This allows the customer to view the price and be taken directly to the product page from a post; linking directly to the product page allows Detroit Bikes to get more interaction. Furthermore, Detroit Bikes has also activated a paid advertising campaign on Instagram. However, tracking by the social media platform Instagram is limited. A more appropriate example of Marketing Supply Co's lower-the-line marketing implementation is Facebook tracking data. The most important statistic when examining Marketing Supply Co.'s efforts is the clicks generated for Detroit Bikes. The Facebook advertising campaign began in November 2017 and generated 27,102 clicks in approximately 2 months of November and December. This value can be compared to last year's pre-organic advertising clicks which generated only 361 clicks. This confirms the click-generating effectiveness of the lower-the-line promotion. Likewise, the sessions that interacted with 'Detroit Bikes' (across all mediums) are 15,346. Of these, 131 sessions resulted in a purchase. The current e-commerce conversion rate is 0.853% and to have a successful DTC model, a conversion rate of 5-10% is considered ideal in this industry. Additionally, the costs associated with a simple and singular “add to cart” are $163.64. This conversion rate is quite low and the price of individual add to cart is high, but it is important to consider that the website was made more consumer-centric and revamped at the end of.
tags