Consumer Market for the Business - Assignment Example

Give a detailed description of the current consumer market for this business, focusing on demographics and psychographics Analysing the current consumer market for Powerbike business focusing on demographics and psychographics consumer market segmentation it is quiet clear that the current consumer market for Powerbike business is growing tremendously given the health, environmental as well as social benefits associated with cycling. Demographic marketing segmentation refers to target group marketing segmentation basing on consumer demographic characteristics such as age, gender, income levels, education, population, mortality rates among others (ALCOA,1993). Understanding the target group demographics is very critical to the success of any business because it helps marketers to effectively understand and decide exactly what products and service mixes will be included in the business to meet the tastes and preferences of the target consumers in the market (ALCOA,1993). Additionally, understanding consumer demographic characteristics is effective in marketing because it helps many of the marketers when it comes to products pricing, packaging, promotion and even advertising. Consumer demographics affect the choices as well as decisions of any business (ALCOA, 1993).This is because it additional helps marketers as well as the top organizational managers to properly evaluate a particular location, area or country to determine if the demographic profile of the business potential consumers actually exists in that particular location, area and if the location or area identified is actually viable for business. Demographic consumer characteristics help a business, organization or a company to determine whether the identified population offers demographic traits necessary to support the business (Dhruv & Krishnan, 2007). To begin with, Thailand is a country which is densely populated. Actually population is one of the demographic consumer characteristic which affects consumer demand. The high population trends associated with Thailand presents a high consumer market for Powerbike business. The cost of owning a bicycle in Thailand is very low hence most of the people living Thailand own bikes as compared to cars which actual indicates that the consumer market for bikes and bicycles is growing at alarming rate in Thailand due to the affordability and lower costs associated with owning a bike compared to car (Dhruv & Krishnan,2007). Age is another important demographic consumer characteristic considered by marketers when analyzing the target location for their businesses. The business offers products and services which caters for individuals in different age groups. From the case study, it is evident that cycling offers an economic as well as independent travel option for those individuals whose travel options have been restricted among them elderly people (Henry & Helen, 2010).. The elderly people prefer cycling primarily for their individual health benefits because cycling is considered to be a health fitness exercise that helps an individual to keep fit. The use of bikes by elderly people offers an exciting consumer demand market for various bikes manufactured by Powerbike business. Moreover, from the case study cycling presents a travelling opportunity for different age groups among them children under the age of 10 years and those teenagers under the age of 18 years who cannot own a driving license due to age limitations. This offers another target market group for the Powerbike business. From the population census conducted in 2007, it indicated that a third of the Thailand’s total population actually comprises of children under the age of 10 years while almost a quarter of the population consist of teenagers under 18 years old. Given the mere fact that, Powerbike business offers different kinds of bikes among them children’s bikes and children’s mountain bikes in different range and sizes the high population rates of children and teenagers creates another high consumer market for Powerbike business in different cities as well as all over Thailand. The No Child campaign without a Bicycle’ is campaign which allows Thai children to own and have bicycles to ride to school as well as in long distance, instead of walking barefoot (Henry & Helen, 2010). This campaign has created an increased demand for children bikes by various parents and children themselves creating a high consumer market for Powerbike business specifically children bikes meant for children. Moreover, since majority of Thai universities, both public and private, are located in or around the capital. Many of the university and college students prefer cycling to school rather than driving in a car as result of social, environmental and health benefits associated with cycling. Since Powerbike business offers a wide a variety of bikes among them road bikes popularly known as racing bikes, students opt to use these bikes as compared to cars increasing the consumer demand for road bikes as well as other kinds of bikes offered by Powerbike business. Moreover, cycling actually offers an increased mobility to all groups of the population among them, high income earners, low income earners who cannot afford to own a car, middle and unemployed people. Thailand is a country which is densely populated and this relates to its capital city thus Bangkok. From the population census conducted in 2010, by it indicates that population rates in Bangkok as well as Thailand in general in the recent years has been grown tremendously by ten percent due to high mortality rates. Poverty therefore continues to be a problem due to high rates of unemployment. This has been attributed to lack of enough resources and lack employment creation which has limited individuals who can own a car. Since Thailand generally is associated with high rates of unemployment, it presents a high consumer marketing opportunity for Powerbikes business as many people cannot effectively own and manage a car due to eth costs associated with it. Moreover, bikes are cheaper, cost effective and easy to maintain compared to the cost of owning car. Since the bikes are cheaper compared to cars, many of the people in Thailand specifically unemployed as well as low income earners prefer buying bikes to cars as the cost of bikes is cheap and they are easier to maintain compared to cars. This has increased demand for various bikes manufactured by Powerbike business especially in the consumer target group of unemployed as well as low income earners. The case evidently indicates that Cycling as a method of transport is cheap, meaning that the society can afford and buy bicycles at cheaper prices. This is the cheapest method of transport not only on the affordability but requires fewer expenses on fuels. It is estimated that around 80% of the world’s populations are in position to buy and afford a bicycle as compared to the 10% of the population capable of buying cars. Therefore low income earners and unemployed form a larger consumer market of Powerbike business given its affordability. Gender is another consumer demographic characteristic which many marketers use to segment the market as well as their consumers in terms of male and females (Lamb, Hair & McDaniel, 2012). Relating this demographic characteristic to the case study it quiet evident that both male and females forms a larger consumer market for Powerbike business. This is because the business offers a wide variety of bikes which are suitable for men and women. Specifically from the case study, Powerbike offers women bikes specifically meant for women. The women’s specific bikes are usually fitted with ladies’ saddles, smaller frame sizes and alternative colours, and are designed to make women feel more comfortable. This evidently indicates that working, unemployed and young women form a consumer market for the Powerbike business bikes. When the current consumer market of Powerbike business is analysed using Psychographic segmentation which refers to the grouping of consumers according to their individual lifestyles as well as other psychographic variables such as activities, opinions, attitudes, interests and values, it is quiet evident that the current consumer market for Powerbike business products is growing tremendously (Shimp, 2010). Tourists therefore form apart of the consumer market for Powerbike business products because many of the tourists usually prefer cycling so that they can view the great city as well as others use bikes to see and access places which cannot be accessed by a bus or any car. Since Powerbike business offers various bikes among them road bikes, mountain bikes, hybrid bikes and bicycle motocross motor cross, tourists purchase these bikes for various purposes increasing demand as well as consumer market for Powerbike business bikes in Thailand. Additionally, athletes and other sport lovers form another category of Powerbike business consumers. From the case study Powerbike business offers hybrid bikes which take design features from road and mountain bikes. These bikes are suitable for general recreational riding and commuting. On other hand bicycle motocross a (BMX) bike which refers to the type of bikes that can be used for dirt jumps, street riding, BMX racing and just mucking around. Additionally, those individuals who have health problems, forms another consumer market for Powerbike business. This is because cycling is associated with various health benefits. Many of the health professional have recommended that health fitness is an important activity and especially where physical exercises are supposed to be incorporated. Cycling is an important exercise and individual with the capability of cycling in a day receive enough good physical exercises. Moreover, cycling is reduces pollution caused by various vehicles on the road. Individuals concerned with the environment both young, adults and old among them the government of Thailand in general forms another consumer market for this business. From the case study it is indicated that cycling has various environmental advantages. Research on environmental issues clearly illustrates that cycling does not have any negative impacts on the environment. Using bicycles does not emit any from of carbon to the environment which is termed as a safe method of travel to the environment. Appropriate positioning strategy for Powerbike and an example of the body copy for a piece of advertising Given the competitive nature of the market in which Powerbike business operates, it is important for the business owners to consider a competitive positioning strategy. Competitive positioning is a marketing strategy that focuses on product differentiation, enhancing and creating value to the market. Competitive strategies explains the idea of getting competitive advantage in the market and creating better strategies of enhancing products in the market. The key element of competitive positioning strategy includes the value position and they include product management, operational quality and customer understanding. Positioning strategy can be characterized and developed in different ways. It entails the aspects of product attribution, application, the targeted customers and the quality of the product. All these aspects have a different strategy in enhancing competitive positioning strategies even though they are all components of positioning strategies. To successful compete in the market, it will be important for Powerbike business to characterize its competitive positioning strategy under the following approaches. Products as a positioning strategy This approach focuses only on the significances as well as the characteristics of the product in enhancing customers benefits. For instance, the application of the introduction of bicycle in Bangkok will illustrate the significances and the importance it will have on the customers for instance economy. Many of the bicycles introduced will emphasize on the fuel economy and environmental protection from pollution and stresses on durability. In positioning strategy the bicycle will be positioned along with its significance.Products are associated with the feature of the products, attributes and customer feature. In some cases products are associated with more than two attributes which include the price and quality that are the major components of product positioning. Therefore it is an important aspect that marketers of Powerbike business analyzes the attributes considered to be more important to the customers. These fundamentals are important in making effective consumer decision as far as the products and services of Powerbike business are concerned. Developing an effective product positioning strategy by Powerbike will enhance products positioning in the market, through advertising and promotion. In this case Powerbike business will market its products with the objective of having a meaning fill and differentiated theme in the customers mind. This will create a high consumer market for Powerbike business.Development of effective product positioning strategy by Powerbike business is an important and crucial idea that will mark a difference in the overall business marketing strategy. The positioning strategy will be effective if the company develops a planning procedure that defines its goals and branding is one of the effective means that can be considered. Every element of the marketing strategy is supposed to be effective and focused on the objectives and differentiated concepts are supposed to be developed in order to target the customers. The application of the product positioning strategy can be executed in an effective way using different creative methodologies. Moreover, to differentiate itself from other competitors in the marketing, Powerbike business should use various marketing and advertisements campaigns which lure consumers into cycling such as “BIKES FOR SALE.GET ONE AND ALL YOUR NEEDS ARE FULFILLED” Using such product positioning strategy and advertisements will attract the target market which Powerbike business intends to achieve. Pricing as a competitive positioning strategy Pricing is an effective way of targeting customers (Dickinson, 2007). The prices that are imposed on the products have a meaning on the products characteristics and nature. Since Powerbike produces different types of bicycles and each type of bicycle has different prices, it is important that the prices which will be imposed on the target consumers be reasonable and affordable (Dickinson, 2007). To win the target market, it is important for Powerbike to price its bikes slightly lower than its competitors depending on the cost involved. This will give Powerbike an advantage over its competitors because the bikes will be priced cheaply enabling many consumers to purchase them from low income earners to high income earners. Pricing as a competitive positioning strategy, analyses the quality of the products and the prices that are issued by the company. In many of the products criteria, there are different types of brands that are in apposition of providing more services than the others and in features and performance. The prices are strategized according to the products characteristics. Positioning strategy based on the application of the products In this type of strategy the products will be based on the application in the second and third characteristics (Maclaran, 2010). For instance, the Powerbike advertisers may convince the customers on the importance of cycling and its advantages. Cycling is very important on health, affordable and it is environmental friendly. Many customers will definitely understand the role of the product and its significance. The brand of the products is supposed to be well defined. Positioning strategy based on products process In this positioning strategy the products are usually associated with the users. Since Powerbike offers a wide variety of bikes it caters for various consumers. This is added advantage over its competitor’s but it’s important that Powerbike business brands its bicycles more effectively depending on the use of the bike. This will market the Powerbike business bikes in the market more effectively since each customer in the target group will purchase a different bike brand depending on the products image and the principles a as well as model communicated by the product. Positioning strategy based on cultural symbols To differentiate products many companies are applying cultural symbols that differentiate their brands from those of competitors. In this case Powerbike should use a significant approach on the cultural symbols as they advertise their products. The most important task is in the identification of product that is significant to the customers and that the other competitors are not producing in the market and associate the products brand with the symbol. Trademarks are also important in the positioning strategies. Positioning strategy based on competitors In this type of competitive positioning strategy there is more than one or more competitors. Reference competitors are the most dominant components in this type of positioning strategy for power bike. Power bike advertisers can engage in using new strategies of product positioning as compared to the competitors. What is the likelihood of this enterprise moving to service the business market in Bangkok? Explain your answer. Since Powerbike business has established itself as a reputable business in Thailand with high consumer base all over Thailand, the likelihood of this business moving to service the consumer market of Bangkok is very high due to the exciting market opportunities that Bangkok has. First and foremost, due to the increasing health benefits, environmental and social benefits associated with cycling many people are turning to cycling as a travel option which actually presents Powerbike business with a marketing opportunity for bicycles in Bangkok. Additionally, analysing the current consumer market for Powerbikes business from the case study focusing on demographic consumer segmentation it is quiet evident that the identified business location thus Bangkok offers demographic traits necessary to support the Powerbike business in Thailand and Bangkok itself. First and foremost Bangkok’s high population and high rates of mortality presents a high marketing opportunity for the Powerbikes business. In marketing population is usually defined as all persons living in a particular geographic area (Henry & Helen, 2010).. Population is an important consideration in determining the consumer demand because the high the population the higher the demand for various products and services and vice versa. Putting this facts into consideration, it is quiet evident that the high population of Bangkok city presents high consumer market for the Powerbikes business. From the case study it is indicated that, Bangkok has a population of approximately 6.3 million people, while the greater Bangkok area has a population of 11.9 million people (Henry & Helen, 2010). This actually presents a high consumer market for Powerbike business given the mere fact that the cost of owning a bike is relatively low hence most of the people in Bangkok can comfortable purchase and own a bike compared to a car increasing consumer market base for the business. Additionally, from the case study is quiet evident that massive traffic jams within various cities in Thailand in particular Bangkok is still a problem. Most resident’s waste amount of time on the road hence many of the residents prefer riding bicycles to avoid the traffic jams. Since Powerbikes offers bikes which are cheaper and used for various purposes many people among them young, old, working, unemployment are turning cycling as away of reducing environmental pollution within various cities in Thailand as well as avoid traffic jams. This in turn has increased demand for bikes among various consumers due to the benefits associated with cycling. The increased demand for various bicycles and cycling in Bangkok as a result of traffic jams presents the Powerbike business with an opportunity to introduce its bikes to the market because there is a high chance that Bangkok residents will choose to use bike riding as an alternative transportation option for short distance trips. The No child without a bicycle campaign is another exciting opportunity that Powerbike business will use to venture into the Bangkok market emphasizing the need for children to own bicycles as a means of transport to school as well as an alternative option to those parents who cannot afford vehicles to drop off their children to school. Moreover, the government’ promotion of ‘Bangkok Cycling Tours’ by the Tourism Authority of Thailand (TAT) to tourists has increased the need for cycling in Bangkok in particular among tourists (Henry & Helen, 2010). Many tourists prefer cycling as compared to travelling in vehicles. This presents Powerbike business with an opportunity to venture into the market due to increasing demand for cycling from the tourists. Lastly, Powerbike business offers a wide range of products among them road bikes, mountain and specialty bikes for all types of riders, as well as accessories and repairs. Since Powerbike has a wide range bicycles to suit customers who love cycling and who wish to use a bicycle for transport, it gives them an advantage over other competitors to move to Bangkok and acquire a larger consumer market. References ALCOA (1993).Journal of Professional Services Marketing, Volume 9.Chicago:Haworth Press,pp.45 Dickinson, R.A.2007. Journal of Retailing: Special Issue on Consumerism. New York: Institute of Retail Management, New York University,pp.89 Dhruv, P.,A & Krishnan,G.,R..2007. Marketing research. Boston, MA ; New York : Houghton Mifflin Co.,pp.45-56 Henry, H & Helen, M.,H. 2010. Case Study 11: The benefits of cycling: a marketing opportunity for Powerbike in Thailand. Maclaran, P. 2010. The SAGE handbook of marketing theory Author:Los Angeles [u.a.] SAGE, pp.67 Lamb, C. W., Hair, J.,F & McDaniel, C.,D. (2012). Essentials of marketing. Mason, Ohio : South-Western Cengage Learning,pp.12 Shimp, T.,A. (2010).Advertising, promotion, and other aspects of integrated marketing communications. Mason, Ohio : South-Western Cengage Learning,pp.45 Read More