[Project Title]

Motorcycle Airbag Project Report

Executive Summary:
This report provides an overview of the project focusing on the development and distribution of a
motorcycle airbag system, as well as the skimming pricing method proposed for the product. The
report outlines the key features of the motorcycle airbag, the indirect channel of distribution, and
the pricing model adopted for the product.

1. Introduction:
The motorcycle airbag project aims to introduce an innovative safety feature for motorcycle
riders. The airbag system is designed to provide riders with additional protection in the event of
an accident or collision. This report provides a comprehensive analysis of the skimming pricing
method and the indirect channel of distribution for the motorcycle airbag system.

2. Product Description:
The motorcycle airbag system is a cutting-edge safety device designed to enhance the
protection of riders in the event of a crash. The airbag is integrated into the rider's jacket or vest
and is equipped with sensors that can detect an imminent collision. Upon detection, the airbag
rapidly inflates, providing a cushioning effect to reduce the impact on the rider's body. The
system is designed to be lightweight, comfortable to wear, and seamlessly integrated into the
rider's gear.

3. Channel of Distribution:
The distribution of the motorcycle airbag system will involve an indirect approach to reach the
target market effectively. The channel of distribution will include the following components:

a. Authorized Dealerships and Retailers:

Establishing partnerships with authorized dealerships and retailers will enable the motorcycle
airbag system to reach a wider audience. Partnering with motorcycle gear stores and retailers
will provide a physical presence for customers to experience the product firsthand.

b. E-Commerce Platforms:
An online presence through e-commerce platforms will be essential for reaching a global
customer base. The motorcycle airbag system will be made available for purchase through well-
established e-commerce channels, allowing for convenient access for customers worldwide.

4. Pricing Method - Skimming Price:

The pricing of the motorcycle airbag system will follow a skimming pricing method. This
approach involves initially setting a high price for the product before gradually lowering it over
time. The skimming pricing method is based on the following principles:
a. Capturing Early Adopters:
By setting a premium price initially, the motorcycle airbag system targets early adopters and
enthusiasts who are willing to pay a premium for innovative and cutting-edge safety technology.

b. Maximizing Revenue:
The skimming pricing method allows the company to maximize revenue and recoup initial
investments in research, development, and production. The premium pricing strategy is designed
to capitalize on the value offered by the motorcycle airbag system.

c. Competitive Positioning:
The initial high price sets a precedent for the value and quality of the product, positioning it as a
premium safety feature in the motorcycle industry.

d. Gradual Price Reduction:

Over time, as the product gains wider acceptance and competition increases, the price of the
motorcycle airbag system will gradually be reduced to make it more accessible to a broader
customer base.

5. Conclusion:
In conclusion, the motorcycle airbag project aims to revolutionize rider safety by introducing an
advanced airbag system tailored to the needs of motorcycle enthusiasts. The indirect distribution
strategy focuses on leveraging authorized dealerships, retailers, and e-commerce platforms to
reach a wide audience. The skimming pricing method prioritizes capturing early adopters,
maximizing revenue, and gradually expanding market reach while maintaining the perceived
value of the motorcycle airbag system.

The successful implementation of the indirect distribution channel and skimming pricing method
will contribute to the widespread adoption of the motorcycle airbag system, enhancing the safety
and well-being of motorcycle riders globally.