Motor Scooters By: Courtney Davis, Account Director Ali Demulling, Research Director Kathleen Kosiec, Public Relations Director Mary Rossetti ...
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Created For Schwinn
Motor Scooters By:
Courtney Davis, Account Director
Ali Demulling, Research Director
Kathleen Kosiec, Public Relations Director
Mary Rossetti, Creative Director
Bobbi Jo Snethen, Media Director
1
Index
Situation Analysis ............................................................. 3
SWOT Analysis ...................................................... 12
Campaign Strategy ........................................................... 13
Media Plan ...................................................................... 19
Budget Allocation..................................................... 24
Creative Plan ................................................................... 25
Creative Brief .......................................................... 26
Radio Ad ................................................................ 29
Print Ads ................................................................ 30
Billboard ................................................................. 35
TV Ad Script ........................................................... 36
Public Relations Plan ........................................................ 37
Press Kit ......................................................................... 45
Appendix ........................................................................ 52
2
Situation
Analysis
3
Situation Analysis
History and Industry Trends
Scooters emerged from Italy after WWII in an effort to produce economical, yet elegant vehicles through war-
rebuilding government subsidies. In 1946, Piaggio’s Vespa had great success both at home and abroad, stirring
up initial interest in the market. Motor scooter popularity ensued in the US around the 1950s, peaking in 1987
with 300,000 units sold according to the Motorcycle Industry Council. However, sales have increased 500
percent since 1999, rising from 83,000 units in 2004 to 130,000 units in 2005. In the entire motorcycle
segment, motor scooters are the fastest growing sales market. According to the Motorcycle
Industry Council, scooter sales were up 17.5 percent in 2005, and up 20 percent in the first six months of
2006.
Many market watchmen attribute the rise in scooter sales since the millennium to the rising cost of gasoline.
With most models getting anywhere from 50 to 80 miles per gallon, the scooter satisfies the budget-conscious
and eco-friendly consumer.
Industry trends are pushing for larger engines with greater sophistication, capable of greater speeds. In
2003, 50cc engines made up 74 percent of the scooter market. In 2005, they only made up 66 percent of the
industry. Scooter engines over 250cc rose from 5 percent to 6.75 percent during this same time period. Dealers
may push these models because they stand to make more profit off the sale, or consumers may want machines
that can keep up with high-speed traffic – or both. Larger scooters provide a more comfortable ride
for two and substantially greater power. Scooters with engines as large as 600cc were first released by
Honda as 2002 models, and were followed by the release of the Suzuki Burgman 650cc scooter in 2003.
Social clubs among scooter owners have also sprung up all over the country, with diverse
memberships and goals, suggesting scooter users are as much enthusiasts as they are
owners. Revivalists seek to bring scooters from the 70s and 80s up to current emissions codes, and others
simply want to organize rides across the country. Some popular Web sites for these groups include www.
mopedarmy.com and www.scoot.net. These groups seem to challenge the idea that there is a youth bias in the
scooter demographic, with members ranging from middle-age suburbanites to retirees.
In comparison to European and Asian countries, the scooter industry in the U.S. is still
in its infancy. Scooters continue to be “step-through” vehicles in the United States, `providing a way for
motorcycling novices to enter the market. Their automatic engines and ease of use allow consumers the
ability to drive their new scooter right off the lot.
Despite the good news about rising scooter sales in 2006, the latest industry figures suggest
that the U.S. scooter market may have hit a ceiling. Some reports indicate that the overall sales
were actually down 4.6 percent last year. Although contentious, some point to the last major sales spike in
fall 2005 as being attributed to high gas prices. With current gas prices falling, some U.S. consumers may no
longer think of scooters as an economical alternative to transportation.
4
Competitive Analysis
Honda is the scooter market leader, with an estimated 36 percent market share in the U.S.
Honda offers a wide-range of products in the U.S. – from retro styled small engines to performance
scooters. Honda has succeeded in providing advanced customization and safety features, along with the
environmentally-friendly four stroke engine on all 12 models. Its most popular models include the 50cc
Metropolitan and Ruckus. Honda scooter sales rose 20 percent from 2002 to 2003 according to Powersports
Business, and continue to dominate scooter sales in the U.S. market.
U.S. sales just for the leading scooter manufacturers Honda and Yamaha of Japan, and Aprilia
(owned by Piaggio of Italy) reached 48,000 units alone in 2004 for their 150cc engine sizes or smaller, and
continue to rise steadily according to industry statistics.
Yamaha reports indicate tremendous sales growth in urban U.S. markets, and their 50cc Vino is
extremely competitive with Honda’s 50cc Ruckus for number one selling scooter in the
small engine category. Yamaha’s 50cc Zuma model has also been competitive in this sales category.
Yamaha admits that they do not aggressively market their scooter, citing that the scooter is part of a larger
brand offering to all potential customers.
The reintroduction of Piaggio’s Vespa in the U.S. market in 2000 has seen much success,
although its market share as of 2006 was only about 1 percent. However, their growth has been aggressive and
their marketing strategies unique. In a marketing campaign aimed at U.S. municipalities and local leaders,
Vespa hopes to make its case for scooters as the answer to many transportation woes in the United States.
For example, they have collaborated with some city officials in creating scooter-friendly
features, such as better parking. Their Web site “Vespanomics” explains to consumers the fuel-
efficiency and reduced emissions of their scooters, and follows their platform that Americans need scooters
to save them from the expense of oil-dependency. The New York Police Department even uses
Vespas to patrol around the city.
In 2004, Italian manufacturer Piaggio acquired Aprilia and MotoGuzzi, which also make motor scooters.
Piaggio’s concentration in the motor scooter industry makes it a threat to companies
like Honda, Yamaha, and Schwinn – who rely on scooter sales secondarily to their
other product line-ups. Piaggio is experimenting with the popularity of hybrid cars by
introducing its first “green” Vespa in Italy recently, along with a new three-wheeled
scooter. Piaggio is looking to compete with the Japanese market by expanding beyond the traditional scooter.
Scooter saturation with cheap Chinese and Taiwanese imports also threatens to slow the market for traditional
scooter manufacturers. These small-engine models can sell for as little as $800 to $900 and started becoming
prominent in the market in early 2006. With nearly a quarter of all scooter registrations being
for models below 125cc engines, these Far Eastern imports pose a serious threat to the
market. Manufacturers need to aggressively promote their technology, reputation, and brand values in order
to distract consumers from the cheaper alternative.
5
Situation Analysis
Scooter manufacturers are also pushing for single brand dealerships, steering away from multi-
franchise dealers. The incentives for such include higher service and specialization, as well as brand
differentiation. Manufacturers are likely to offer incentives for dealerships to make this switch.
Consumer Analysis
USERS:
According to data from Simmons Database from a 2003 collection sample, moped users are most likely
to be employed full-time, with 62 percent of users working over 30 hours per week. Not
employed scooter owners accounted for 29 percent of all scooter owners.
Geographically, scooter users were concentrated in West Central United States and the
Northeast, with 171,000 and 165,000 drivers respectively. The South and the Pacific regions each shared 15
percent of all moped users, while cities like New York, Chicago and Los Angeles all had significant users as
well.
Of moped users, .97 percent were full-time male college students and 2.97 percent were part-time male college
students. Far less of all moped users are college-aged females – only a total of 1.45 percent, both full and part-
time. Full-time, female college students were 74 percent less likely than the average person to be moped users.
Although scooter marketing strategies
often identify college students as a niche
market, they make up a relatively small
proportion of all moped users.
According to Simmons, the age and gender segments
with the greatest reported scooter use included: 35-
44 year old women (17 percent of all moped users),
45-54 year old men (12 percent), women over 65
years (12 percent), 35-44 year old men (10 percent)
and 18-24 year old men (9.67 percent). This data
suggests a diverse consumer market for
scooters.
In terms of scooter user psychographics, 49 percent of all users consider themselves a creative
person – compared to only 30 percent of people in the general surveyed population. Scooter
users were also 94 percent more likely than the average person to enjoy taking risks. Although 23 percent
of moped users agreed that people should use public transportation when possible, only
17 percent were worried about the pollution caused by cars. In fact, moped users were
no more likely to care about car pollution than non-moped users. This fact seems to dissuade
against using an environmentalist approach to sell motor scooters. Of all the respondents in this survey, 1.10
6
percent of people that like to stand out in a crowd use a scooter – a significant percentage in comparison to
other values. For example, of all people that enjoy taking risks, 1.06 percent use a scooter.
Scooter owners also have a wide range of hobbies. Forty-four percent of moped users enjoy gardening, 34
percent enjoy photography, and 28 percent enjoy going to bars or night clubs. While scooter owners
enjoyed many other activities according to the data, these items stood out from their non-
moped using counterparts.
CONSUMERS:
Schwinn’s consumer has been described as between the age of 18 to 35, with men owning more, although
women’s interest and ownership is growing. There was a consumer bias toward college kids and adults
with no children. This consumer group was described as style-conscious, free-spirited, moderate risk-takers.
Typically the consumer was economically and ecologically inclined, and lived either in coastal or metropolitan
locales.
On the contrary, Motorcycle Industry Council spokesman Mike Mount said the median age of all
scooter owners in the industry is 46 years. Along with this trend, the age of the average
scooter owner has nearly doubled in the past five years to over 40 – which some cultural
experts credit to mopeds’ acceptance as “cool” by kids. Mount cited that scooters also have wide
appeal to both the young and old, male and female. In fact, a quarter of all scooter owners are
female.
INFLUENCERS:
One trend in American life is the technology early adopter. Many preteens and teenagers have graduated from
bicycles with the advent of the electric scooter. Some attribute rising motor scooter sales to these
youngsters moving up the “scooter food chain.” In some teenage circles, scooters have turned into
the definitive fashion statement.7
Scooters continue to be “step-through” vehicles into the motorcycle industry as well.
Scooters feature automatic engines, relative ease of use, and often little licensing for the smaller models. As a
result, many people looking to get into motorcycle riding will experiment with scooters. Likewise, someone
who may have been away from motorcycle riding for some time may decide to try out a scooter instead.
Others point to the rise in scooter use as a result of the uniquely modern mindset of Generation Y. Neil
Howe, cultural historian and coauthor of “Millenials Rising: The Next Great Generation” explains moped
resurgence due to the idea among Generation Y “Millenials” that “the idea of a big, bad, dangerous gas-
guzzling machine is not the millennial style. They prefer something that is not only socially
responsible in a big sense, but also in a little sense: It makes less noise, and it’s less likely to
get them into an accident.”
7
Situation Analysis
Brand Analysis
While Schwinn maintains the image of an all-American, classic brand in the minds of adults, the brand
name holds little to no importance to younger demographics. The only consistent
comment that people were able to make about Schwinn was that they sold bikes and some
did not even know the brand existed. Not a single person that was interviewed was aware
that Schwinn manufactured and sold motor Scooters. Those who were somewhat familiar with
the brand felt that mostly “old people” or children used the products. There was also a common
perception that Schwinn bikes were not made for sport uses such as mountain biking. One person felt that
Schwinn had “sold out” by selling their bicycles in Wal-Mart and outsourcing their labor.
Category Creative Analysis
In early 2005, Schwinn Bicycle Company announced its entry into the gas-powered motor scooters industry.
This new venture, under the name Schwinn Motor Scooters, rolled out three 50cc models, the Schwinn
“Campus,” the “Collegiate” and the “Graduate.”
The company press release announcing Schwinn’s entry into the motor scooter market described Schwinn as
“a highly trusted name in the wheeled goods category” and “one of the most recognized and respected brands
in the U.S.” Since introducing the three models in 2005, Schwinn has expanded its line to include two more
50cc models as well as two 150cc models. Moving into the gas powered scooter category was
described as a “natural extension of the Schwinn brand.”
Schwinn’s marketing campaign suggests that Schwinn is attempting to capture the youth market as it
transitions into adulthood. Schwinn does this by suggesting that a gas powered motor scooter
is a logical extension of the old fashioned bike of childhood and is playing to customer
and brand loyalties that may have been established early in life. Furthermore, the names of the
three models – the Campus, Collegiate and Graduate – clearly suggest the late high school, college and recent
college graduate crowd as the clearly targeted demographic.
Other marketing efforts by Schwinn confirm a continuation of this marketing strategy. Earlier this month,
Schwinn announced a national consumer promotion and scooter giveaway with the
clothing retailer Buckle.
By contrast, Piaggio USA, the manufacturer of the Vespa brand scooter, reaches out to a decidedly
different demographic. This can be seen in their marketing materials that address global
warming issues, such as reducing carbon emissions and fuel efficiency. Furthermore, Vespa’s
partnership with A Shaper Image, seems to indicate they are reaching for a more sophisticated and
professional audience. On the Vespa website it also emphasizes the history of the scooter and it’s use in
major cities (opposed to college campuses).
8
On Schwinn’s website, the slogan is, “What’s your Adventure?” This emphasizes more of a
college lifestyle than a busy professional who is trying to save time scooting through traffic. Unlike Vespa,
Schwinn’s website does not emphasize a busy lifestyle where people seem to value time,
money, and durability.
Other competitors of Schwinn such as Honda and Yamaha are more geared for the middle of these two
decidedly separate demographics. Honda and Yamaha are trying to take the logical step from
motorcycles to scooters, while Schwinn is extending from bikes to scooters. Honda’s
website estimates that consumers care about outside appearance, but deep down value
what’s in the inside. On Hondas website for their Metropolitian scooters they point out “sure it’s cute,
hip, and cool….but beneath that fun-loving form is a fuel efficient, ultra-reliable machine.” Schwinn does not
use this method in their advertising on their website. Schwinn’s website is geared toward recreation and taking
“adventures” on your scooter. Yamaha uses a more simple and to-the-point strategy on their
website. Unlike Schwinn, Yamaha only uses pictures of the scooters and facts about their
durability, engine strength, speed (etc). However, Yamaha gives little insight into their
consumer’s lifestyle and personality.
Media Usage Analysis
With a limited income, Schwinn Motor Scooters has yet to make a name for itself in the
media. Schwinn scooters are being sold at local dealers, but this is leaving the discovery of the Schwinn
Motor Scooter in the hands of chance and dealer strategy. Schwinn Motor Scooters provides dealers with
branded banners, hang tags and static cling decals to project the name and description of each Schwinn
model.
Schwinn is also involving dealers with the POP program that will include metal signs with the Schwinn
quality seal, Schwinn Scooters logo, illuminated Schwinn Scooter signs and 10 x10 canopies that adorn the
Schwinn logo. Dealers can purchase these goods with cash or credit or can use 2 percent co-op dollars
toward buying POP.
Schwinn Motor Scooters’ main method of media has been through press releases that have informed the
public about upcoming promotions and specialty products.
Schwinn Motor Scooters launched a national consumer promotion and scooter giveaway with Buckle taking
place on March 7-28, 2007. Any customer that tries on BKE Buckle brand items will receive a chance to enter
a sweepstakes to win one of five Schwinn Motor Scooters in addition to a chance to receive 10 to 25 percent
off BKE merchandise. Buckle’s homepage will feature the scooter sweepstakes along with an interactive game
featuring Schwinn scooters. Schwinn Motor Scooters is targeting a younger audience through Buckle, which
sells trend conscious apparal, footwear and accessories to young men and women and has an all-American
brand appeal similar to Schwinn’s. Buckle has more than 350 retail locations throughout 38 states.
9
Situation Analysis
On August 1, 2006, Schwinn Motor Scooters presented the Hope motor scooter. The Hope model is a
50cc, pink scooter in which a portion of sales goes to raise awareness and support research
of breast cancer. This particular model caters to females due to its chosen color and develops a message
that Schwinn is more than a profit-oriented enterprise.
On March 14, 2006, Portland Motorcycle Company donated a Schwinn Campus model to a 50-year-old
mentally disabled man whose three-wheeled Honda Gyro was stolen in front of his home. This story
projected a message that Schwinn Motor Scooters are considered very safe and functional
for any customer.
Schwinn Motor Scooters’ website provides a list of upcoming national events that the
company will partake in. These include Camp Scoot, Mile High Mayhem and Kings Classic. Camp
Scoot is run by the Atomic Scooter Club formed late in 2003. The rally features multiple brand names in the
form of scooters, mopeds, motorcycles, racers and riders of all ages and backgrounds. Mile High Mayhem
occurs July 28-31, 2007, and includes a four-day agenda for any involved scooter riders that will congregate
in the Denver City, CO area. The event is sponsored by numerous motor scooter companies. The Kings
Classic will take place on August 10-13, 2007, in San Francisco, CA, where participants will meet, ride, attend
conferences, concerts and other social events.
Schwinn Motor Scooters announced on March 14, 2006, that ARI, the leading provider of technology-
enabled business solutions that help equipment dealers build sales and profits, will host EMPARTweb and
provide an interface to the Schwinn website to low on-demand access to its parts and service catalogs by
authorized Schwinn dealers and personnel. Approximately 81,000 catalog subscriptions are provided through
ARI to more than 29,000 dealers and distributors in approximately 89 countries.
Stakeholder and Public Opinion Analysis
DEALER/STAKEHOLDER:
SAVVY, INC. spoke with sales associates from the following five stores that sell motor scooters in addition to
ATVs, motorcycles, and/or snowmobiles: Appleton Powersports. Appleton, WI, Corse Superbikes, Saukville,
WI, Engelhart Center, Madison, WI, Majestic Trikes N Cycles, Horicon, WI, and Sport Rider, Altoona, WI.
Interestingly, even though these dealers were found on Schwinn’s website, one dealership,
when contacted said they do not even carry scooters! (Thundervalley Cycle, Oshkosh)
All of these stores carry Schwinn scooters, including one store that only carries Schwinn, (Majestic) and
one store that sells more Schwinn scooters than any other brand (Sport Rider.) The Yamaha Vino was the
top selling brand, and the Aprilia SR50 was cited as another top seller. According to my interview results,
the dealers feel that Schwinn’s strengths are the past association with bikes, and the
American-owned company association. Weaknesses mentioned included that the quality is not
perceived to be on par with brands like Yamaha and Honda because the scooters have only been
10around for 2 years.
4 out of the 5 dealers also did not believe that they sold most of their scooters to college
students, or to parents. The split was almost 50/50, with working professionals buying scooters
for transportation, and for recreational purposes. Fuel economy was cited as the main reason
consumers buy scooters, but many dealers said that recreation was also a big factor.
In interviews and the focus group, brand didn’t really appear to be a main concern; price is the overwhelming
factor on selecting a scooter. None of the respondents were aware of Schwinn as a scooter
brand, but thought of Schwinn bicycles when asked about Schwinn. Another interesting
insight is that many of the students in the focus group felt scooters aren’t safe because of the traffic in Madison
and fear of “wipeouts.”
PUBLIC OPINION:
The scooter dealers did feel that gas prices would increase scooter sales. “Greener” transit is becoming more
of a trend in the Midwest, with Minneapolis’s Metro Transit system purchasing hybrid buses. (Blake, Star
Tribune) Barb Thoman, “Climate change is a lot on people’s minds, as is fluctuating gas prices, and the
combination of those two things is causing a lot of people to reevaluate how to get around.”
Besides more environmentally-friendly transportation, fuel efficiency is important. It is not only
important to consumers to save money, but also to reduce the U.S.’s dependence on foreign
oil. “Reducing this country’s dependence on foreign oil was more important to likely voters than any other
national security issue, according to a survey in August by the Democracy Corps, a Democratic strategy group
spearheaded by James Carville.” (Gallagher, Milwaukee Journal-Sentinel)
Another interesting trend is the criticism aimed at charity campaign like the (RED) campaign
that has spent $100 million on marketing, but has only managed to raise $18 million. A watchdog group
believes that campaign like (RED) really only give college-age consumers “… an excuse to feel good about
themselves while they buy an overpriced item they don’t really need.” There is a lot of speculation that
this “Gen Y” is not interested in charity, and that expensive campaigns like (RED) aren’t
effective.
11SWOT Analysis
Strengths:
• Schwinn brand has been around for a long time and is associated with some positive qualities.
• The company has created a legacy in the bike industry that has remained imprinted in the minds of many
adults.
• To men and women who grew up with Schwinn, the brand name elicits a kind of nostalgia about their
youth.
• They feel that Schwinn creates quality products that are classic and dependable.
• Dealers are also familiar with the Schwinn legacy and are attracted to the quality customer service that the
brand prides itself on.
• As bike-riding has long been considered a recreational pastime, many people may associate a brand that is
famous for manufacturing bicycles with leisure.
Weaknesses:
• One of Schwinn’s greatest assets, its brand name, is irrelevant to it’s current target market of college
students.
• Most college students said they would buy a Honda or Yamaha
• only 6 percent of motor scooter riders are in college.
• not a single person interviewed was even aware that Schwinn made motor scooters.
• The creative message of the website is not effective toward its target audience and must be updated.
Opportunities:
• Schwinn has the opportunity to corner a specific market as the motor scooter industry is taking off.
• Schwinn can emphasize its classic brand name and make its motor scooter industry into the specialty
brand name it once was for bikes.
• The brand holds much more sentimental value to older generations than other brands. Whereas most
motor scooters function as step-through vehicles to owning a motorcycle, Schwinn has an opportunity to
become a step-up from a bicycle
Threats:
• Brands like Honda and Yamaha currently dominate the market and the Piaggio Vespa has begun to
rapidly gain market share.
• Foreign imports threaten Schwinn’s share of lower priced moped market.
12Campaign
Strategy
13Campaign Strategy
The Schwinn Consumer
After much research, Saavy, Inc. has developed a strategy that
will aid Schwinn in achieving their goals of doubling their 2006
motor scooter sales of $5 million and increasing the number of
dealers that carry Schwinn motor scooters to 500 by 2007.
Schwinn’s current target market, college students, are valuable
customers. However, we have determined that they should not
be the primary target market. According to our data, less than
7 percent of motor scooter users are either part-time
or full-time college students. In addition to low scooter
usage, college students have little to no association with the
Schwinn brand. With relation to age, the scooter market is very
diverse across age-groups. Because of the wide range of people
that use scooters, it is important for Schwinn to develop
a niche.
The best opportunity for Schwinn to develop this
niche is by targeting females just out of college, aged
23 to 30, just beginning their careers. These women are
moderate risk-takers who are determined to be successful but
also enjoy having a good time. These independent women do
not have children and are just beginning to really experience life
on their own.
According to Simmons, 25 percent of scooter users are women. After analyzing Schwinn and other
scooter brands, it is evident that this market is being ignored. Most scooter brands, like Yamaha and Honda,
are extensions of motor cycle companies that are more likely to appeal to males. According to survey results,
males reported that they are more likely to purchase a motorcycle than women despite the fact that both sexes
reported an equal likeliness to own motor scooters and bicycles. As Schwinn is most often associated with
bikes, women may be more drawn to the brand-name over more masculine motorcycle brands.
Survey results also revealed that respondents most likely to own a scooter rated success, having fun/
recreation, and family as their top three values. When asked about scooter characteristics, good price
and gas mileage ranked highest. Interestingly, style ranked an entire point (on a scale of one to
seven) higher for women than men. As the Schwinn name is associated with good value and a classic
look, it may also be more appealing to women.
By focusing primarily on young female professionals, Schwinn also maintains their current targets: college
students and dealerships. Marketing toward these independent professionals would also appeal to college
students who aspire to one day become successful as well. In addition, Schwinn could convince more
dealers to buy their product because they offer a unique product that appeals to a relatively untapped target
demographic in the motor sports segment.
14The Schwinn Advantage
Schwinn’s competitive advantage is that it has the quality and
familiarity associated with Schwinn bikes. Consumers, especially baby
boomers, recognize the brand and tend to think of an American-made
quality product. Schwinn products appeal to consumers because they are
extremely affordable but are still perceived as a higher quality product
because of the association with the Schwinn brand name. Schwinn motor
scooters are different from the competition because they offer a quality
product for less money than Honda or Yamaha and have a
recognizable brand name among the lower priced models
from overseas - like Kymco.
Currently, the brand is still relatively new to the scooter market. The scooters have only been around for two
years and consumers are still unfamiliar with Schwinn as a scooter brand. They heavily associate Schwinn
with bikes and the past, since many baby boomers had Schwinn bikes growing up. Currently, Schwinn is
competing with Kymco and the other cheap imports from overseas. Our campaign aims to gain a greater
market share for Schwinn and eventually take some market share from Honda and Yamaha. First, Schwinn
must be perceived as a higher quality scooter than Kymco. After the campaign, Schwinn scooters
will be seen as the “metropolitan” scooter for those that can’t afford the Honda original.
Schwinn’s scooters have a stylish, retro appeal like the Metropolitan, but for a lower price.
The New Schwinn
Schwinn’s new branding strategy should be a mixture
of classy retro with a sense of independence
and free sprit. It will emphasize a mixture of a
successful and responsible lifestyle juxtaposed with the
spirit of being young and having endless possibilities.
Since our primary SVC is females, 23-30, Schwinn
scooters will offer an alternative edge to the daily routine
this age group is slowly moving into as they transition
into the working world. We will emphasize Schwinn
as a timeless brand that is trustworthy yet
affordable. Schwinn will provide them with freedom,
creativity, and convenience as they make big decisions in
their new lifestyles.
Schwinn’s current brand strategy is linked to old school bikes, nostalgia and Americana.
This current brand strategy will be incorporated into our desired brand strategy in the most attractive way
to the lifestyle of young professionals. We will take these aspects and try to package the Schwinn brand as
a classic choice. A customer who used Schwinn as a child when riding a bike, will now be
15Campaign Strategy
able to use the brand in the working world. The feeling of first
learning to ride a bike is a huge victory for a child’s sense of independence.
Hopefully, we can link these feelings of nostalgia of first leaning to ride a
bike to the feelings
young professionals have when moving further away from their parents’
support and entering the intimidating workforce. Thus, the Schwinn
scooter can be another step toward independence, just as
learning to ride a Schwinn bike might have been to a child.
These feelings of nostalgia might ignite feelings of trustworthiness,
independence, and freedom we want these young professionals to feel
when considering to buy a Schwinn scooter. Of course we also want to
emphasize that a Schwinn scooter is a more “grown up” choice to these
young professionals.
While we want to maintain a positive connection to bicycles, Schwinn
will be associated with a successful and sexy lifestyle.
Bicycles hardly scream sex appeal. Therefore, we will work
with the nostalgic feelings of independence our audience gained when
leaning to ride a bike, but also greatly emphasize the new and exciting lifestyle they have transitioned into
since then via the motor scooter. We want the Schwinn morot scooter to be the sexy mode of
transportation of the working world .
Campaign Strategy
Some of the most salient strategies forming the backbone of our campaign include the timing and location of
the desired campaign objectives. The emphasis will reflect the strengths of Schwinn motor scooters and cater
toward the desired demographic’s interests.
We would like to align Schwinn’s motor scooter campaign with the fall and spring fashion
weeks to coincide with our SVC’s interests. We would like to incorporate the campaign with
designer fashion in order to reach women who could be interested in motor scooters along with new seasonal
apparel. The campaigns will likely occur in September and February – the months when designers reveal their
new lines. We would like to keep the campaign domestic, primarily featuring the two major Fashion Weeks in
the U.S. – Los Angeles and New York.
Schwinn’s style will be emphasized as a modern remake of the retro-style bicycles and
automobiles of decades earlier. Schwinn motor scooters will provide a sophisticated alternative method
of transportation that is less expensive than a vehicle and classier than riding the city bus. We like to compare
Schwinn motor scooters to the fashion store H&M. H&M’s clothing looks expensive, classy and
sophisticated, but the clothes are sold for a very reasonable price. We will stress the less
expensive pricing of the scooters but in a discreet manner that will avoid the label “cheap.”
16Our campaign strategy will avoid mentioning Schwinn’s outsourcing to foreign countries in order to
conserve the All-American Schwinn reputation. And although Schwinn’s historic name is a positive aspect
to build upon, we will try to upgrade customers’ opinions of Schwinn from “good old American bikes” to a
more modern take on transportation and the progression to the automotive industry.
What’s Next?
By building upon Schwinn’s existing, positive brand image while creating
the progressive “need” for motor scooters, SAVVY, INC. will develop
a creative plan to target young female professionals and reach Schwinn’s
future goals.
1718
Media
Plan
19Media Plan
Demographic Target
“With You All the Way” will be targeting young, female professionals ranging from ages 23-30 who have
secondary education, are career-oriented and consider themselves fashionable and stylish. This demographic
considers themselves moderate risk-takers, seeks bargains when shopping, is fairly cynical toward the
effectiveness of television advertising and strives to be successful with style.
General Reach and Frequency Goals
Schwinn Motor Scooters “With You All the Way” campaign is nationwide. Our goal
is to reach the target audience in large cities along with incorporating smaller cities who’s
public transportation is not a large competitor. We plan to reach our SVC by dedicating 50 percent
of our budget to magazine print advertisements that will cater to fashion-conscious, independent women.
In order to spend money efficiently, we will distribute our advertisements through a flighting
strategy that will coincide with the spring and fall fashion lines’ release. We will compliment
our flighting strategy by pulsing with other forms of media, such as outdoor spot marketing, radio spot
marketing, buzz marketing and other miscellaneous methods elaborated in public relations.
Duration
“With You All the Way” is a yearlong campaign that will be launched in September of
2007 to align with the release of the New York City spring fashion line. Three-month intervals
will be dedicated to heavy advertising. We will continue running advertisements through November to include
other cities’ seasonal fashion line debuts. We will discontinue running print advertisements through December
and January in order to allocate the budget during peak purchasing seasons. We will reemerge with fall
fashion shows that will begin in February of 2008 and continue through April.
Timing
According to research, 22-29 year-old females can most likely be reached through radio during daytime hours.
Of females ages 22-29 that own a moped, 78 percent would listen to the radio Monday
through Sunday from 10am to 3pm. We are targeting the working woman who generally listens to the
radio while at work or during transit time. Research shows that this age group does not listen to the radio past
7pm or before 6am.
20Regional Emphasis
“With You All the Way” will focus on large cities and cities of smaller magnitude. Of
Miami residents, 14 percent are females ages 22-29 that own a moped. Of females ages 22-29,
9.6 percent live in New York City, 7.1 percent live in Detroit and 4.4 percent live in Los Angeles. Cities with
less traffic congestion and where public transportation is less common, such as Denver, Minneapolis, Raleigh,
Madison and Seattle, will be targeted as well. We will increase advertising in cities according to the month of
the spring and fall fashion line emergence.
Target Geographic Locations:
-Detroit -Los Angeles
-Miami -Seattle
-New York City -Madison
-Minneapolis -Raleigh
-Denver -San Francisco
Media Scheduling Strategy
We will execute a flighting strategy that will allow us to campaign for Schwinn Motor Scooters during
particular seasons while refraining from spending during transition intervals. With a limited budget, we will
be able to allocate spending during specific times of importance rather than practicing a continuing advertising
strategy that is less likely to cater to our SVC’s interests.
21Media Plan
Media Selection Criteria
National Magazines $2,500,000
Spot Radio $350,000
Outdoor Spot Marketing $500,000
Internet Target Sites $650,000
Product Placement $500,000
Miscellaneous $500,000
Total Budget $5,000,000
Editorial Compatibility
The content of the national magazines we added varies, however, fashion, fitness and health, and
entertainment are common themes. Our print ads, discussed in the creative plan, will emphasize growth from
dependent girls to independent women. The ad features high heels, which we are projecting as the perfect
accessory for a Schwinn Motor Scooter. As explained earlier, we want to emphasize style for an affordable
price. We will team up with fashion apparel department store H&M.
22Placement and Scheduling
Print advertising will be placed in Glamour, People Weekly, PARADE, USA Weekend,
Shape and Vogue from September through November and February through April. These
national magazines are most commonly read by our SVC.
Outdoor advertisements will be placed on billboards in the following cities: New York
City, Los Angeles, Detroit, Miami, Madison, Seattle, Minneapolis, Raleigh, Denver and
San Francisco. There will be additional emphasis on New York City and Los Angeles during the months
of February and September to coincide with the release of each city’s seasonal fashion line.
Radio advertising will steadily pulse through the yearlong campaign, slightly increasing
frequency during the peak months we selected. These ads will run during the day between the hours of 10am
and 3pm.
Our Internet advertising will rely on target sites frequented by our SVC. We will place advertisements on
Schwinn’s homepage, although this will not affect our budget spending. The most common online activities
for 25-34 year-olds include news and weather, banking, airline reservations, shopping, real estate listings and
other financial information. The key sites we will advertise with are facebook.com, myspace.com, ebay.com,
orbitz.com, match.com, google.com and cnn.com. The variety of the sites will manage to reach
our SVC through either means of entertainment-based web sites or newsworthy sites.
2324
Budget Allocation
% of Cost CPP GRP Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
Budget
National 50 2,500,000
Magazines
Glamour 9 450,000 21,240 21 4 3 3 4 4 3
People Weekly 11 550,000 64,733 8 2 1 1 2 1 1
PARADE 12 600,000 64,733 9 2 2 1 2 1 1
USA Weekly 10 500,000 64,733 7 1 1 1 2 1 1
Shape 4 200,000 21,240 9 2 1 1 2 1 1
Vogue 4 200,000 21,240 9 2 1 1 2 1 1
Spot Radio 7 350,000 3,461 101 6 10 10 10 6 6 6 6 10 10 10 6
(daytime)
Outdoor
Spot Market 10 500,000 35,000 14 1 2 1 1 1 1 1 1 2 1 1 1
Internet
Target Sites 13 650,000 102,375 6 1 1 1 1 1 1
Product 10 500,000 75,000 6 1 1 1 1 1 1
Placement
Fashion shows 5 250,000 37,500 3
H&M contract 5 250,000 37,500 3
Miscellaneous 10 500,000 16 1 2 2 1 1 1 1 1 2 2 1 1
charity donations 6 300,000
model riders 0.6 30,000
POP advertising 2 100,000
H&M gift 1 50,000
unexpected 0.4 20,000
expenses
Total 100 5,000,000 206 8 29 24 22 8 8 8 8 30 24 22 8Creative
Plan
25Creative Brief
The Goal:
to convince young women that Schwinn motor
scooters will help them gain independence and
acheive success.
The SVC:
Recent female college graduates who are career-
oriented, independent, and aspire to become
successful. They want to look sexy and stylish
but aren’t planning on settling down any time
soon. These women are ready to face the road
ahead, but still have some uncertainties about
the future.
The challenge:
We will overcome the “old bike” image
associated with the Schwinn brand by
transforming Schwinn motor scooters into a
modern, stylish version of their first bike.
The reward:
Schwinn motor scooters allow young women
to save money, gain independence, and look
stylish.
Support:
These women will trust the Schwinn bike
company from their youth to carry them into
their next phases of life. Schwinn has grown up
with these women and the new affordable motor
scooters fit with their stylish lifestyle.
Tone:
We will invoke nostalgia while emphasizing
the women’s progression from young lady to
professional.
“With You All
The Way”
26Creative Plan
Creative Theme
Savvy Inc. will introduce a new, stylish line of scooters while reminding consumers that the Schwinn brand
is a stable, All-American brand. As a result, our campaign theme is, “Schwinn: With you all the
Way.” The audience should feel that Schwinn has grown up with them; they should see Schwinn’s motor
scooter as a classy brand that has evolved into something more edgy and modern. In targeting a young,
fashion-conscience, career-focused female demographic, Schwinn wants to remind its SVC that despite
the uncertainties of life, Schwinn will be with them all the way. This tagline links the product with the most
common abstract need amongst this demographic – personal development and growth. In effect, Schwinn
acts as a bridge between their reliance on parents and family and their attempt at finding their position in
society.
Business Objectives
The creative strategy will sell Schwinn as a more fashionable form of recreation and transportation for the
working woman. Other motor scooter brands primarily rely on dealers to sell products, but
we want to build brand interest through an advertising campaign that integrates print ads,
promotional events, outdoor advertisements, online and extensive public relations. In the
clutter of macho motor sports companies, we want women to feel comfortable with Schwinn. We want the
experience of purchasing a Schwinn to be an empowering statement for women.
Schwinn’s creative strategy will appeal to dealers in that it will have an extensive point-
of-purchase program and will have a built-in buzz that will draw in consumers. Consumers
will feel comfortable with the program, especially with the implementation of female salespeople at popular
dealers to help women feel more comfortable with their purchasing decision. Consumers will also connect
bicycles, the most common Schwinn association according to our research, to the motor scooter industry.
Many consumers have expressed that they did not know Schwinn even made scooters previously. We
will translate the existing positive brand perceptions to this newer line of motor scooter
products while creating a need in the mind of consumers that a motor scooter is in effect,
“an adult bicycle.”
MARKETING TARGET:
Professional, Cosmopolitan Women
Age 23-30 years of age
With a strong desire to:
Excel professionally
Live independently
27Creative Plan
Creative Tactics
Savvy Inc. will advertise Schwinn motor scooters as a natural evolution of its most well known product, the
bicycle. Creatively, we will stress to young, modern professionals that Schwinn cares about
their future and understands the challenges they face upon entering the “real world.”
The unifying elements in our campaign will be shown though the idea that Schwinn has grown up with its
audience and is with them through a new transition in their life. Since most people recognize the
Schwinn brand as a bike company, we want to stress the natural extension of bike to
motor scooter and make the audience feel like Schwinn has “grown up” with them. We
picked the tagline “Schwinn: with you all the way” so the audience feels like the Schwinn brand has grown
up, but is still a trusted brand from their youth. We also want our SVC to link the feelings they had as a child,
when they first learned to ride a bike (i.e. freedom of movement, comfort, independence, self-reliance) to
riding a motor scooter as they transition into adulthood.
The audience will see Schwinn as a trusted brand that is now accommodating to their new lifestyle.
Ultimately, we want them to chose Schwinn because Schwinn understands its consumer
Overview of Creative Messages
Creative headlines to accompany our theme ,“With you all the Way,” include “From
high tops to high heels,” “A knee scrape to a clean slate,” “Peddling to never settling,”
and “Testing your brakes to loving your breaks.” Advertisements will implement creative
elements that contrast the user’s association with Schwinn bicycles in childhood with their
life as an adult. The visuals will be clean cut and strong, with a sensitive touch nodding to their past.
Our advertisements will hopefully achieve two goals. Firstly it will attract our SVC to consider purchasing
a scooter in the first place, by tapping into the nostalgic feelings of independence and freedom when first
learning to ride a bike as a child. If the audience links the feelings of independence and freedom
to the brand, whether through a bike or a motor scooter, they will have overall good
feelings toward the brand. Secondly, by understanding their new lifestyle and emphasizing our already
trusted brand name bikes, they will choose the Schwinn brand.
28Radio Script
HIGH HEELS 1/1
SAVVY INC.
5/1/07
SOT: Children playing and singing ambiance, establish, then under
Announcer: Remember riding around the block on your first Schwinn bike? Playing with
your friends, and being the fastest biker on the playground?
SOT: children fade under….
SOT Full: Noisy traffic, establish, then under
Announcer: “Now your playground is Madison Avenue, and you are racing to finish
deadlines, not bike races. You wear high heels now, not high tops. Schwinn is here, to help
you get you where you need to be with a range of 4 stroke, 49-150cc motor scooters that
will not only help stay fashionable, not fashionably late.”
Outcue: “….fashionably late.” ß(CUT OUTCUE)
Runs: :20 ß(CUT LENGTH)
SOT: Children playing, then under
Announcer: From high tops to high heels, Schwinn is with you all the way. Visit www.
schwinnscooters.com
Est. time : 30
29Print Ads
From your first Sting Ray
The maker of the bicycles
you loved as a child have
caught up with your
lifestyle, in style.
...to the end of the work day
Introducing the new
Schwinn Motor
Scooter
It’s fast,
fuel efficient, & the
ultimate accessory to
your stilettos.
With you all the way.
30From High Tops
...to High Heels
The maker of the bicycles you loved as a child, has caught up with your fashion taste.
Introducing the new Schwinn Motor Scooter.
It’s fast, fuel efficient, and the
ultimate accessory to your stilettos.
With you all the way.
31Print Ads
From peddling
...to never settling
The maker of the bicycles you loved as a child, has caught up with your drive to strive.
Introducing the new Schwinn Motor Scooter.
It’s fast, fuel efficient, and the ultimate accessory to your stilettos.
32 With you all the way.From a knee scrape
...to a clean slate
The maker of the bicycles you loved as a child, has caught up with your drive to strive.
Introducing the new Schwinn Motor Scooter.
It’s fast, fuel efficient, and the ultimate accessory to your stilettos.
With you all the way. 33Print Ad
Always fashionable...
Never fashionably Late.
34 With you all the wayAlways Fashionable...
Billboard
Never Fashionably Late. With you all the way.
35(Voiceover)...From High Tops ...To High Heels
From Peddling ...To Never Settling
From a Knee Scrape ...To a Clean Slate
From your First Sting Ray ...To the end of the work day...
Schwinn has caught up to your lifestyle, in style.
Introducing the New Schwinn Motor Scooter.
With you all
the way...
36Public
Relations
Plan
37Public Relations Plan
Public opinion trends:
One of the rising themes in American living according to the 2006 Mintel Reports was the Technology Early
Adopter. Rapidly changing technology and eager, tech-savvy young adults are competing
in the race for the newest and coolest gadgets and devices. As a result, many young people have
“graduated” from the bicycle with the advent of the electric scooter, and others attribute the rising motor
scooter sales to these consumers moving up the “scooter food chain.” Effective advertising for our product
will need to incorporate the drive of the Technology Early Adopter: to be individualistic, yet still part of a
common group. Apple’s iPod understood this principle all too well and has been riding high on success every
since.
Americans also seem to be concerned over eating healthy, perhaps in fear of developing
into the most obese society of all time. Recent trends also suggest that Americans are more interested
in purchasing organic or “natural” care items than ever before, suggesting that people are taking proactive
approaches to consumption.
Another interesting trend that emerged in 2006 was the spending power gains made by the LGBT segment.
Advertisers have already begun to play to this largely untapped consumer base, featuring LGBT-friendly
families in automobile and house ware advertisement campaigns. The LGBT segment has the money needed
to demand attention from the market and the market is beginning to understand the profit that could be
derived from such. We don’t intend to specifically target this segment, just yet, but will keep monitoring the
spending of this segment.
PR strategy:
ISSUES IMPORTANT TO THE SVC
Within our target group of women between 23 and 30 years old, those who are currently moped users
identified that they were 690 percent more likely than the average person to be willing to give up time
with family in order to advance their career. Current female moped users in our target group
also expressed an above-average drive to get to the top of their careers, set up their own
business, or volunteer with an environmental organization. This particular sort of woman says
that she excels best at juggling tasks and considers herself a moderate risk-taker. Female, 22 to 29-year-old
moped users were 55 percent more likely than other women to admit they are workaholics, yet they also
expressed that they valued the importance of looking younger and more attractive over other women their age.
This woman seems to want everything all at once.
Schwinn’s target market also expressed that they were 30 percent more likely than other women in their age
group to be brand loyal consumers, which proves to be a blessing and a curse in the advertising business.
Furthermore, these women reported above-average advertising negativity toward
traditional mass media. Data findings also suggest that these women are by no means impulse shoppers,
38with almost half of all respondents citing they did not make purchase on a whim – compared to 20 percent
of women in the general population. These factors suggest that this woman makes purchasing decisions
critically.
Hyper-successful women in our target market also demonstrated a passion for fashion,
with over three quarters of the women enjoying experimenting with new styles. Moped
users were also 336 percent more likely than the average person to buy the hottest fashions every season,
which fits nicely with our product tie-ins to Fashion Week. While our target market expressed being
conservative with other purchasing decisions, over a quarter of all our respondents admitted to buying clothes
that they don’t need – compared to just 11 percent of other women in their age group who plead guilty to
shopping therapy. This startling find suggests that tying Schwinn Motor Scooters to fashion could help to
decrease the resistance these consumers usually display when making purchasing decisions.
MANAGING OPINION
Dealers:
We want dealers to know that Schwinn is a player in the scooter market, and that carrying
Schwinn scooters is a worthwhile endeavor. We will do this by having a presence at trade shows,
scooter rallies, and also by emphasizing Schwinn’s POP advertising for dealers. We also will offer local dealers
opportunities to gain exposure by joining Schwinn at career fairs and malls in our target markets.
SVC:
Our goal is for our SVC to associate style, quality and accessibility with Schwinn motor
scooters. We want them to think that we understand the demands of their busy lives, and
that owning a Schwinn scooter will make their lives easier. We will accomplish this by having
a strong internet presence on sites like facebook, Myspace and youtube. We also want to stress Schwinn’s
commitment to women through our breast cancer research fundraisers. Lastly, we will associate Schwinn as
a stylish yet accessible product through print advertisements in leading women’s magazines and a partnership
with H&M.
Media Relations and Target Vehicle
Initially, we will be distributing press releases and alerting our media contacts. However, we also anticipate
“buzz” marketing from our H&M promotion (details in promotional section) and the fashion week events
to be a factor in helping our events attracts media attention. Since we are on Myspace and facebook, we
potentially can reach millions of users who are curious about the fashion promotions. We expect this
marketing to not only attract the attention of consumers and dealerships, but also the media who will be
interested in covering our events, especially after the internet “buzz.”
39Public Relations Plan
MEDIA CONTACTS
(additional contacts listed in press kit)According to our research and data, our SVC reads these publications,
so it is important to have a presence here. These publications also emphasize fashion, and being successful,
which are important to our SVC’s.
Glamour USA Weekly
William Wackermann Lee Zellweger
Phone: (212) 286-2860 Phone: (323) 930-3300.
Fax: 212-286-8336 Fax 323-935-4214.
Parade Magazine People
Christie Emden Peter Medwid
Phone: (212) 450-7049 Phone: (212) 522-5386
Vogue Shape
Tom Florio Storm Ackermann
Phone: (212) 286-2810 Phone: (011) 263-4803
Public Relations Tactics
MYSPACE/FACEBOOK PROMOTIONS
During February, we will offer a Facebook “gift” of a pink Hope scooter; ribbons and pink bras that people
can purchase for $1 and will match all the donations to the Susan G. Komen breast cancer foundation. We
will launch a MySpace.com page, “Hope™ for a Cure,” linking viewers to breast cancer charity events in their
area, along with ways to get involved. Five Hope scooters will also be given away in this promotion
MALLS AND CAREER FAIRS:
At malls and career fairs, Schwinn will have a booth with “models” dressed up in business suits riding on
Schwinn scooters. We also plan on inviting Schwinn dealers from the area to be a part of this event. The
dealers will offer test drives of Schwinn scooters. In addition to the test drives, we will also offer Schwinn
ancillary products like keychains, bumper stickers and water bottles.
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