CHAPTER 8: eGO BIKES
SUMMARY
The eGO Vehicles company manufactures and sells electric bicycles. There are challenges in
classifying this new-to-the-world product. It’s not quite a bike, not quite a motorcycle. It’s
definitely environmentally friendly, though. The product serves a specific market need of
reducing traffic congestion by reducing the number of big cars on the road making short trips and
errands.
The video explains how the eGO Cycle was developed from prototype to production. After the
first prototypes were produced, the owners tested the market to see if people were interested in
the product. They executed rounds of market research and found out that the market greatly
favored the product. The result is a booming company, driving sales through word-of-mouth and
huge public relations. The distribution channel has been more difficult to determine. The
majority of sales come through direct sales online and in their stores, rather than through
retailers. While the company is not yet profitable, it continues to push innovative marketing
strategies in order to increase market awareness.
DISCUSSION QUESTIONS:
1. The chapter defines three categories of new products (page 213): classically innovative
products, new-category entries, and additions to product lines or line extensions. Into which
category would you put eGO Bikes?
2. After watching the video, do you believe that the new-product success factors on page 215 in
the chapter are in place for eGO Bikes?
3. Contrast the level of success of the “Segway” to the marketing of eGO Bikes.
1. In small groups, brainstorm a new product concept that spins off of the eGO Bike.
2. To perform a quick and dirty concept test, have the groups in #1 above run informal focus
groups with other groups in the class to determine the viability of their new product ideas.
3. Contact the websites and discuss their current status. Will it or has it become a commercial
success?