In this article, I’ll share a significant experience from my time at Canal Digital, a wholesaler dedicated to hardware commercialization, venturing into the renewable energy sector with a line of electric motorcycles. I was contacted by a former boss to support them (for a period of one year) in developing the marketing and brand positioning strategy, as they hadn’t achieved this. A SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis approach and its interpretation were key to our success.
Initial situation
Upon joining Canal Digital, the electric motorcycle line was the least profitable in the company, with high volumes of inventory and spare parts, and average monthly sales of 3 or 4 vehicles. Additionally, the market for these vehicles in Colombia (in 2017) was immature. A detailed SWOT analysis was necessary.
Situation analysis (SWOT)
I conducted an in-depth analysis of Aima’s situation in Colombia and the electric vehicle sector:
- Weaknesses: We had a limited national presence, few and small distributors, and prices above the market average.
- Opportunities: A virgin market, legally they didn’t need vehicle insurance (mopeds) – this changed in mid-2017. A need was detected in some energy trading companies in certain regions.
- Strengths: We had German motors (Bosch), attractive motorcycle models, and trained personnel to develop and support strategies.
- Threats: Companies like Auteco entering this market with a very extensive and consolidated national presence, high and restrictive financing for this market niche.
Set objectives
- Negotiate with financing companies to offer alternatives to the end customer.
- Study alternatives to avoid abandoning the small distributors who trusted the brand.
- Identify market niches that would provide competitive advantages.
- Leverage our strengths to compete in the market.
Strategy and results
After conducting a deep market analysis, I detected an opportunity with energy trading companies. I identified one in particular, and we found that they had a requirement to increase energy consumption in their regions and care for the environment. We identified the right people and sought a meeting space to present them with an alternative. I managed to secure a meeting with EEP to present our project, which aligned with their strategy to increase energy consumption and clean mobility in Pereira, Colombia. In that meeting, we presented our proposal and listened to their concerns, which were primarily two: issues with spare parts, after-sales service, battery recycling, and safety (Colombia is among the top countries worldwide for motorcycle accident fatalities).
After this meeting, we had 2 weeks until our next one. During this time, we developed an e-commerce platform for spare parts (1,000 references), a virtual training in defensive motorcycle driving (speeds not exceeding 45 km/h), an after-sales training program for EEP personnel, and a program for receiving defective batteries or those needing replacement.
In the following meeting, we presented our more consolidated project, and we won, over companies like Auteco, the exclusive representation for motorcycle sales in their region. With an additional advantage: EEP would finance the mopeds for their customers through the energy bill. This way, we covered all the details identified in the previous analysis. We increased monthly sales by more than 1500%, with very accessible and direct financing with EEP. Additionally, we conducted marketing campaigns directly with their MEEP line (we as a white label).
We worked very closely with EEP, supporting them step by step, becoming strategic partners. At the level of small exclusive AIMA distributors, they were allowed to market other brands.
My work lasted a year, and Canal Digital continued with the commercialization, leaving doors open with EDEQ and EPM.
Conclusion
The proposed strategy was risky but yielded incredible results. We went from being the last line in terms of revenue to being the 2nd in that period. The profit margins on motorcycles were higher than those on hardware sales. A successful negotiation won us this exclusive representation process as a white label. In addition to lacking resources for marketing or sales strategies on this regions. Having a 360-degree vision with a SWOT analysis was key. Below, I share some of the achievements.
