Sustainable Bicycle Rental Services At Central Cape Cod – XYZ Company

Products/Services

There has been an increasing concern about the environment among customers. They are adapting to every possible way through which the impact on the environment can be reduced (Wojciechowska-Solis & Barska 2021). Therefore, it has also become one of the major responsibilities of an organization to cater to these needs of the customers and implement sustainable options to fulfill the unmet need of the customers (Ahmed et al. 2021). Apart from this, it has been observed that there has been an increasing concern among the travelers who visit a tourist destination about the increased pollution. Also, if a customer is visiting a tourist destination, they likely have to walk or use a means of public transport to visit the nearby sightseeing. Therefore, to cater to the customers and meet their needs, a sustainable business solution has been proposed.

We at XYZ company, have thought to provide a solution to the unmet needs of the customers. We have planned to be a part of the big and budding industry of bicycle rental and will be providing the services, particularly in central Cape Cod. There are several bicycle rental companies but our differentiation factor from our competitors will be that we will distribute the rental bicycles straight to our clients at their campsites, motels, or their summer rental residences. This is the start- up business and currently, we have an in- depth operation plan which includes promotional activities. In addition to this, we have even agreed on providing access to the station wagon in order to distribute bicycles along with a service department to store them in. We have planned to sensibly purchase the used bicycles in brilliant quality at a very affordable price and would also offer to the customers at an affordable rate.

The target market will be the people who want bicycles to be delivered at their campsite, motels or summer residences. This is because our organization will charge with some money in making this delivery and initially the focus will be on the customers who are interested in renting the bicycles for more than a single day. The main target will be the price shopping market because the customers would not purchase bicycles for a longer period and they incline to be price-conscious. With the clients who are looking to have bicycles on rent sent to their location, and primarily leasing for a period longer than one day, these particular individuals will be slightly different from that of a person who rent a bicycle for hourly basis from the roadside stand. The individuals who rent a bicycle for an hour from the roadside stand are mainly young, in their 20s, and are usually in a group of friends. However, the individuals leasing bicycles delivered to their locations and renting them for numerous days mainly are couple or a family group. Therefore, our will company is mainly targeting the couple or a family who will be attending the bicycles for more than one day.

The unique value proposition of our company will be: “Rent a Bike, and get Delivery Free”. The value proposition will indicate a minimum of two bicycles which are hired for at least two days for a free delivery option. Our organization is the only service on the location of Cape Cod that will offer the delivery of bicycles to the locations of customers. Also, offering the bicycles delivery for free will make it much more fascinating and will give a tough competition to the competitors. In addition to this, our unique value proposition is short, simple, valued, and striking which will be greatly used in the marketing campaigns.

Target Market

Products/ Services: Our company will deliver bicycles for renting purposes. We will be renting the bicycles for a day, week or month to our customers. We will not be renting the bicycle for less than a day, such as on an hourly basis. We will have two sorts of bikes: adult bikes and children’s bikes, which will be a different mix of diversified companies purchased second-hand.

Gain Creators: Our competitors are providing bike rentals on an hourly basis, but we will not do the same. Rather we will be providing bike rental for a minimum of one day. Also, unlike our competitors, we will be delivering the bike to the customer’s preferred location. Apart from this we also have different types of bicycles among which the customers can choose.

Pain Relievers: This will solve the issues of the customers of visiting the nearby places along with the option of getting the bike at their doorstep. The customers will not have to visit any place to collect the bike or drop it off which is one of the major pain relievers for them.

As several customers want immediate gratification, the on- demand business model has become more popular among the customers. In addition to this, XYZ company is also providing an on- demand business model to their customers in order to meet the unmet needs of the customers. The company is satisfying their customer’s need for immediate transportation from one area to another with the sustainable option of bike rental. In addition to this, another advantage that the organization is providing is the movement of people as they want to become freelancers.

The overall sale of bicycle in the United States as of the year 2015 was around $6 billion according to the National Bicycle Dealers Association (Fishman & Cherry 2016). Although, if the normal bicycle trader originates 0.8% of their income from hiring services, then the main market for bicycle rental would be around $48 million. The exact data for just the region of Cape Cod is not available but it can be estimated. The projected number of bicycles available for rental is around 1300 and the emphasis will be put on 10- week summer season where most rental occurs. Hence, the total days of rental through the summer season are 28 days per bicycle x 1300 rent bicycles, which comes around 36,400 rental days. The market for bicycle rentals in the region of Cape Cod is constantly growing and it is even fuelled by several favorable factors. As the customers are perceiving a healthier lifestyle, mainly on vacations, they have an increasing preference of wanting a bicycle on their vacation which is a favorable factor for the company.

The bicycle rental industry in which XYZ company is operating is dominated by U Pedal It, Incorporation. The company has a shopfront close to the harbor in Hyannis and the maximum of their payments come from the agent- functioned location all over the region of Cape Cod. Apart from this, there are several retail shops of bicycle on Cape Cod that provide bicycles on a rental basis. The competition within the region is emphasized on the site and exhibiting bicycles in order to attract visitors. Several travelers do not plan to rent a bicycle as a part of their travel but when they take a look at the gleaming bicycle lined up at the rental location, they think of renting it and visiting the nearby places. The company of U Pedal It has been in the market for several years and they have established themselves in the high traffic locations which attract the attention of the travelers.

References:

Ahmed, N., Li, C., Khan, A., Qalati, S. A., Naz, S., & Rana, F. (2021). Purchase intention toward organic food among young consumers using theory of planned behavior: role of environmental concerns and environmental awareness. Journal of Environmental Planning and Management, 64(5), 796-822.

Fishman, E., & Cherry, C. (2016). E-bikes in the Mainstream: Reviewing a Decade of Research. Transport reviews, 36(1), 72-91.  

Wojciechowska-Solis, J., & Barska, A. (2021). Exploring the preferences of consumers’ organic products in aspects of sustainable consumption: The case of the Polish consumer. Agriculture, 11(2), 138.

Dabija, D. C., Bejan, B. M., & Grant, D. B. (2018). The impact of consumer green behaviour on green loyalty among retail formats. Moravian geographical reports.

Luo, R., & Shen, Y. (2009, July). The design and implementation of public bike information system based on Google Maps. In 2009 International Conference on Environmental Science and Information Application Technology (Vol. 2, pp. 156-159). IEEE.

Mastroberardino, P., Calabrese, G., Cortese, F., & Petracca, M. (2019). Sustainability in the wine sector: an empirical analysis of the level of awareness and perception among the Italian consumers. British Food Journal.

Mooney, P., Corcoran, P., & Winstanley, A. C. (2010). Preliminary results of a spatial analysis of dublin city’s bike rental scheme.

Wang, R., & Qian, L. (2019). Ofo: A Bike Sharing Firm from Campus. In China-Focused Cases (pp. 119-136). Springer, Singapore.

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