our bike lock price is $180
Here is general info about the product but I only need The Implementation on the bottom of this page
How many of us understand the importance of security with our prized possessions? Many individuals want their assets to be protected and safe no matter time or location. Technology has evolved and it is nearly impossible to steal cars, laptops, and cellphones without them being tracked or having it disabled. The gift of retrieving something once lost is now an industry standard with all technology and other assets. One area that has been neglected of security for quite some time is bicycles. Bikes are a convenient way to get around over short distances. This may be from home to the nearest station, or even to work. Leaving mountain bikes or racers at stations or other public places unfortunately attracts many thieves. What makes this issue so much more relevant is that we are an urban campus stuck in the heart of Denver and many use bicycles as their main mode of transportation. Bicycle thieves are a major irritant to getting around by bicycle. While most riders would be motivated and determined to do all in their power to stop thieves getting at their precious bicycle, the most sturdy and secure bike locks are often the heaviest and most cumbersome. In a recent article it states “Bike locks can be difficult to carry around while riding. One therefore needs to make a trade-off between portability of bike lock and the level of security it can provide” (Importance of Bike Locks). Bike locks do not ever need to compromise ever for either security or portability, which is why our product Ultimate Bike Lock encompasses security from the 21st century.
Ultimate Bike Lock is bike lock with an alarm built into the lock as-well-as a GPS which is a separate module for your bike. If our all metal U-Lock gets cut or tampered with, an alarm will sound. This is to deter people from continuing with the act just like a car alarm. Also included with our product is a GPS device that installs into frame of the bike enabling users to locate their bicycle wherever and whenever. Users will be able to track their bike using an Application on Android or iOS devices via Google maps, or they can simply log into the website. Our lock is one piece metal design which resists attack from bolt cutters, but are still reasonably easy to carry around. Our GPS is a very small device similar to LO-JACKs GPS module and is included as a bundle deal. The problem we are trying to solve is to provide individuals with a full package of security towards items that normally don’t have adequate ant-theft measures in place. For this application we want to focus on bikes in urban areas where bike theft is high.
The Ultimate Bike Lock is strategically positioned in the market to be very successful. The main strength of the product is the application which will tie in with the bike lock to alert the owner in case of a problem. Currently, none of our competitors are using an application-linked notification system which gives the UBL a huge leg up on the competition. By creating a user-friendly interface for customers to actively track their bike and bike lock, they will feel much more secure when locking up their bike in any area. In addition to the notification center that will be provided with the bundle, the lock has a built in vocal alarm system that will likely deter anyone from finishing the theft after the alarm has been triggered. However, our product has to be competitive with the current market price for bike locks. Our main competitors, such as Kryptonite and Master Lock, price their locks at roughly $30-$50, based on the model the customer is purchasing. The weakness with our product is finding a way to include this new wireless transmitter without unreasonable pricing. The best way to solve this problem is by showing customers that our product is worth the extra money. While the Ultimate Bike Lock may cost roughly 15 to 20 dollars more, it will be worth the peace of mind for the consumer.
With the induction of this new product, we will have to opportunity to showcase a new idea that is incomparable to other brands in this market. For example, New York City experiences nearly 1,500 bike related thefts per year and rising. If we were to actively engage this market into purchasing a product as secure as the Ultimate Bike Lock, consumers would flock to a product that has a user friendly application to monitor the status of their bike at all times without worry. This market would undoubtedly benefit from a more efficient system, considering the problems with theft faced in New York City. Finally, we need to consider the threats associated with our product. The main problem with creating such a unique product comes when others attempt to recreate the product with similar features. For example, other bike locks (those that already include an alarm) may be pressured into creating an application for their locks as well. Not only would this harm long term sales, our product would have to match or outmatch our competitors by further improvements. In the context of the market, our application system may become obsolete if other companies can outdo the work we have already done.
The category for our product, The Ultimate Bike Lock, is athletic accessory. It calls under the same category as other biking merchandise such as biking helmets, bike lights, and other items set to enhance the bike riding experience.
Improving Existing Product:
Our product builds off a previous pre-existing product. There have been bike locks for as long as there have been bikes. However, very few of them go beyond the basic format of a bike lock. The majority of the bike locks on the market are molded pieces of metal with a locking mechanism. A select few among those go above and beyond the traditional approach of a bike lock and incorporate an alarm system into the lock. Our product, The Ultimate Bike Lock, goes a step further and incorporates a smart app to the bike lock which alerts the owner of the bike of the threat if someone attempts to cut the bike lock.
The market for the bike locks is substantial. Catering to the same niche as bikers, we stand to have considerable revenues. Without even examining statistics, the amount of bicycles that are seen on the street an average summer day is exceedingly high. Given that fact, it is safe to assume that the market for bike locks is directly related to the market for bike sales. With that assumption in mind, it can be extrapolated that people will spend money on a highly protective bike lock which will protect their highly valuable assets, their bicycles.
Brand Name Stock Price Company
Kryptonite $36.76 Ingersole Rand PLC
Master Lock $53.98 Fortune Brands (H&S)
There are two major brands that have a majority in the market for bike locks; Kryptonite and Master Lock. The most secure bike lock offered by Kryptonite costs around $100, which does not contain any of the frills of the “Ultimate Bike Lock”, but is considered to be “uncuttable”. It is a common bike lock in New York, where the number of bike thefts extends to more than 1500 per year. The Master Lock on the other hand, is not as heavy duty as the Kryptonite, and costs around $45 for the standard package. I think this will give our product a competitive edge. While we may have to price higher for the security software and alarm features, it will give us a leg up when dealing in areas of high bike theft such as NYC.
Strengths – Superior product. The Ultimate Bike Lock is the only lock with app notification in case of a security breach. In addition, the UBL has a vocal alarm which will likely deter anyone who attempts to break or cut the locking mechanism.
Weaknesses – Price. With the addition of new technology in the UBL, our pricing will more likely be based upon the manufacturing costs and upkeep. With the installment of a wireless transmitter inside the UBL, we will need to focus on showing the customer that these changes may cost more, but will be more effective in preventing theft.
Opportunities – One major thing we could emphasize in our marketing strategy would be the inclusion of our product into areas of high bicycle theft, such as NYC. These areas experience an increasing number of bike thefts every year, which may create an opportunity for our product to be more effective than what is currently on the market. In addition, we will be the only product which incorporates the App, which should be our major selling point to consumers.
Threats – It is possible that other bike lock companies (that already incorporate alarms) will catch on to our idea for an App associated with the alarm. This may cut into our late term profits greatly. If they can find out how to create an app for their future products, their product could become very similar to ours.
For our product, we intend to utilize cost-plus pricing model. The cost-plus pricing model is the simplest pricing model. First, we combine all the cost of producing the bike lock and smart app, and then we add on a percentage which serves as our profit. The cost of the product will range as follows:
Plain Bike Lock: $10-15 per unit
Alarm System: $15-20 per unit
Labor: $5 per unit
Total Est. Variable Cost for Alarmed Bike Lock: $25-35
Total OH and Direct Costs per Unit* $ 10-12
*(Including App Development)
Total Est. Cost per Unit $35-47
Using a conservative approach, if one product costs us $47 dollars to manufacture, we intend to sell the product at a price of $60. If we do this, we are anticipating a 27% profit on each unit sold. This price is still far less expensive than the most expensive alarmed bike lock on the market and it still offer greater safety and protection the high priced bike locks.
There is very little available in regards to alarmed bike locks. The cheapest alarmed lock available costs $8 and the most expensive will cost around $90. Ours is priced in the middle giving people a reasonable pricing option. None of the other alarmed bike locks have an app that is incorporated in its anti-theft measures. One of our biggest competitors, Master Lock, produces the U-Lock. The U-lock, however, has absolutely no alarm system incorporated into their bike locks. This lack of theft prevention is the shortcoming in an otherwise spectacular U-lock. Our product, The Ultimate Bike Lock, takes into account this Master Lock negligence and deficiency and incorporates and alarm system which will alert the owners of potential threats to their bikes. This boosted anti-theft measures will allow the owner to be notified of the ongoing theft via the smart app, which will give the owner a greater chance of deterring the theft. This extra feature available only in the Ultimate Bike Lock will provide more adept bike theft protection.
The advertisement for our lock will focus on three areas we can easily enter: commercials, company’s website, Forms/Reviews, endorsement, and local bike shops. Now our product is not a new making it challenging to have consumers understand what we are selling. Television, both cable and online (Hulu) would be avenues to show what our product is all about. The commercial would be very simple, it would show a thief trying to steal a bike with our lock on it, as he is trying to steal it the alarm sounds deterring the thief and notifying the owner via the smart app that the bike is being tampered with.
Using the internet to get our product marketed is a must. Having a main company website showing our product and allow users to purchase directly through us or other stores. Within our company website we would allow customers write a review on their bike lock. Also we would let other review websites like Gizmodo and Cnet to review the product and have a link within our webpage. These two websites deal with high tech product reviews. Having this third party review would give us more credibility with potential customers.
Next we would endorse the product by allowing many famous bike riders a free lock and allowing them to use it. People like Kristin Armstrong, Lance Armstrong, Judith Arndt, Dede Barry, Ivan Basso. That’s just to name a few of the famous Tour De France riders. We would also advertise this in the BMX world as well. Having well known riders use our product, free to them.
Finally, we would talk to local bike shops, starting with the Denver area and working our way out. Giving each owner of a bike shop a free lock, will promote our product and even encourage shop owners to carry the product in store local.
Our target market for geographic segmentation is anyone in the world. Anyone can ride a bike anywhere. We would sell more in warmer climates because it is nicer weather to ride a bike. People are less likely to ride a bike out in Canada than in Arizona. For the demographic segmentations are college students between the age of 18-24, bicyclist between the age of 10-100, people with Smartphones (for the app), gender can be male and female, and their income can be between $100-$100,000. For the psychographic segmentation their lifestyle can be any lifestyle because biking is for anyone. For behavioral segmentation people will become loyal to us if they buy the product and realize it is a great product and they will recommend our product to anyone that has a bike. For product-related segmentation are other bike alarms. We are going to have the GPS which the others do not have that so we would have one advantage against them.
The Ultimate Bike Lock features many high-tech and advanced technologies gathered together in a easy to carry security unit for your bike. As individuals expectations for security are getting higher it is crucial for companies to innovate and modernize, making the old new. Companies that currently produce bike locks have failed to innovate and advance with current technology. Here in the following list is how our brand is currently positioned now and into the future:
Our branding strategy for: Ultimate Bike Lock
• Have a catchy name and slogan, which is easy for people to remember the product.
• Make the unit in different colors, covers for it, a good way to distinguish from other locks.
• Have the packaging be bold so it can catch consumer’s eyes.
• Internet advertising like Twitter, Facebook, YouTube, Google and Hulu.
• Implement location services via GPS unit bundled with the lock.
• Tracking location services application for both Android and iOS. Which notifies users that the bike alarm has gone off, or that someone is actively taking their bike.
• Have technology blogs /Biking sites test it out and write reviews.
• Reach out to people on the Auraria campus by telling them that they is a better lock out there to leave a bike on campus. So they can have peace of mind.
• Reasonable pricing for consumers, students, and bicyclist.
• Show consumers that it is very easy to use and needed.
• Have some large corporations test it out and if they like it then sell it to their employees and advertise through them.
• Continue to update with customer input and research as the technology advances
• Having customer support and free tutorial online
We have not implemented our product in the market yet. I do not think we will have any problems during this phase because we will ask a few people to test it out and tell us what we can do to make the Ultimate Bike Lock better. This will allow us to reach our target market and fulfill their needs. As for our research methods we want to implement two different strategies, observational and field trials. We will give the Ultimate Bike Lock to people that commute every day and other avid cyclists. This will allow us to see the product in action and see what our everyday bike riders want from such a product. Whether it is the packaging, price, or the product itself we will try to fix it as soon as we get the results. Using field trials method we will be able to let a small group of individuals test out our product and measure it as-well. We want to pick a group of random bike riders and give them a Ultimate Bike Lock and have them use it for a month. After that we would require them to write about their experience with the lock and see what they like and didn’t like about our product. After they have completed the review of the lock they are free to keep the lock free of charge. Testing it locally is also a must. On the Denver’s Auraria campus we can have a small group of students that commute on a bike regular try our product out and see what needs to be changed about our product. Collecting results from all observational and field trials will allow us to work out all the issues that the product may have.