Question

In: Economics

What distribution and pricing strategies would you suggest for Lime (transportation) to enter into Greece's market?

What distribution and pricing strategies would you suggest for Lime (transportation) to enter into Greece's market?

Solutions

Expert Solution

Lime transportation is an American transportation company which runs electronic scooters, bikes and car sharing services.

Thus the distribution channel should be the same as it has in other cities all over the world, directly with the customer. Keeping the vehicle in the selected preferred zones will lead to customers seeking the bikes with the help of the app and thus the connect with the audience is direct, with no hindrances in place as there are no middle men. It is completely run with the help of the app. Thus each city in Greece should have a set of bikes depending on the population size and scope. It can also have local tourist agencies/ schools/ colleges as partners wherein they will make customers aware of such services, thus distribution could be through such third party players as well in the form of marketing.

Now in terms of pricing strategy, it should focus on the per capita income and region specific lifestyle. When customers are availed through travel agencies/schools/colleges, it could focus on lower pricing for them as it is in bulk, for individual customers who are in tourist destinations, it could charge a higher premium whereas in local areas where there is not much penetration it could charge a lower price. If there are more than 2 people hailing a bike, or it is a family group, the charge could be lower thus bundle pricing so that it is able to take advantage of the huge tourist traffic especially in a country like Greece.


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