The Benefits of Cycling - a Marketing Opportunity for Powerbike in Thailand - Case Study Example

Executive Summary Powerbike which provides bicycle facilities to the people are looking towards ensuring a market in Thailand by increasing awareness and creating demand for their product. For this Powerbike has identified the internal strengths and looked towards mixing it with the macro environment so that marketing strategies can be found. This has helped Powerbike to develop a marketing strategy and identifying the prospective customers. Since, Powerbike is aimed at all section of the society the transport company has decided to use all forms of advertising media. This will help Powerbike to spread awareness. The company has further concentrated on the budget allocations and highlighted that the company is able to earn profits by their service. This will thereby help Powerbike to develop a strategy through which they are able to develop a strategy through which they will be able to market their product and ensure that they are able to ensure a wide market to cater with their product. Table of Contents Introduction 3 About the Organization 4 About the product 4 Competition 5 Differentiation Strategy 5 Market Description 6 Macro Environmental Factors 6 Micro Factors 9 Segmentation, Targeting & Positioning 10 Promotional Plan 12 Future Plans 13 Conclusion 14 References 15 Introduction The increasing concern towards world environment has resulted is world economies looking towards developing a framework through which the business are individuals are able to ensure that carbon emission is reduced so that the world environment can be saved. This has further been propagated by different measures and strategies being pursued by the economies which look towards reducing environmental hazards. Powerbike cycling is an example in that direction which is looking towards targeting Thailand and develops demand for bicycle so that people substitute it for other mode of transport. This report thereby looks to present the manner in which Powerbike looks towards identifying both the macro and micro environmental factors and based on it develop a strategy which will help the business to be able to market properly. This will thereby ensure that Powerbike is able to develop better strategies for the future. The report looks towards gathering qualitative data based on past research and findings which will help the business to ensure that the business is able to identify the factors through which the business will be able to ensure better results. The method thereby has been used based on secondary data which will help the business to execute strategies of growth for the future The study is limited to the fact that the research is based on secondary data and no first hand research is done. Conducting primary research through questionnaire and other form of data will help the business to ensure that better information regarding to the perception of the customer is identified. This will thereby help to ensure that better information is gathered and the manner in which the customer looks towards the product can be understood. About the Organization The Powerbike is a company which is located on the eastern part of Thailand and looks towards serving around 1.2 million people. The company looks to work on developing bicycle and is under an ownership of two people who looks towards providing business so that the local community can be served. Further, the organization has also ensured that the company looks towards providing business and has ensured that the environment is looked after by providing bicycle which is eco friendly. Being in the business for over a long period of time and providing customers with different experience and proper service and quality has been a cornerstone based on which Powerbike has been able to grow its market and ensure that they are able to serve maximum customers. About the product Powerbike in Thailand is looking towards selling bicycle and looks towards developing a mechanism through which the demand for motor vehicles reduces and looks towards improving the environmental. The company looks towards selling bicycle for low income earner, unemployed people, senior people and people under the age of 18. The company also looks towards different type of bikes like mountain bikes, road bikes, women specific bikes, children bikes, hybrid bikes, and bicycle motor cross bikes aimed at different section of the society. The availability of bicycle will also provide health and social benefits which will help Powerbike to ensure that they are able to provide better products matching the customer needs and the changing environment. Further, bicycle will ensure low maintenance cost and will help Powerbike to ensure that they are able to provide better products which helps the customers in different ways. Competition Powerbike faces certain degree of competition from the local players in the market but is largely limited due to the fact that there are few bicycle providers dealing in different type of bikes. Also, the fact that Powerbike looks towards different bikes for different segment it has ensured that the degree if competition reduces to a large extent as Powerbike has looked towards a different market. The problem for Powerbike is that they face a difficulty in competition with relation to the target audience as all providers look towards the same segment which has intensified competition and thereby ensured that the degree of competition is there but limited to a large extent. Differentiation Strategy Powerbike which performs in the bicycle segment has developed a strategy which ensures that they have a competitive advantage in delivering quality service as they have ensured that their product is targeted at the niche market. This has ensured that Powerbike stays away from the competition that the bicycle segment is witnessing and developing a bicycle which is sporty and is aimed at a different section of the consumer will ensure that Powerbike is able to provide better services and maximize the satisfaction level of customers. This has helped Powerbike to gain a competitive advantage as performing in this manner has ensured that they remain away from the competition level and ensure an advantage for them. Powerbike has looked towards differentiating themselves from others by ensuring that the product provided by them is different in comparison to those available in the market. Further, Powerbike has looked towards ensuring that there are different variants of bicycle which has ensured a differentiation strategy. Since, Powerbike is looking towards providing bicycle it thereby ensures that they are differentiating themselves as they look towards providing products which is aimed at the environment and looks towards developing a strategy which helps to provide the required differentiation so that the services can be aimed at a different market. Market Description The demand for bicycle is on a rise as environmental concerns have made economies and different players to look at this direction. Bangkok which has a population of 20 million provides an opportunity for the bicycle manufacturer. The fact that the government is looking towards supporting it and is looking towards different cycling tours and making it mandatory for students going to universities to use bicycle shows an increasing demand for bicycle. The fact that the environment has been impacted greatly and the steps taken by the management is not providing the required return has made the business look towards developing a mechanism through which the market presents an opportunity where the demand in going to rise with passing year. Macro Environmental Factors The external analysis looks into external factors and the way the business of Powerbike gets affected due to it. This will help Powerbike to develop strategies which will help to deal with the external situation in a better way and ensure growth for the business Political: Powerbike which functions in Thailand have ensured that they understand the political situation in the country and based on it look towards delivering quality services. The fact that Thailand has a stable government has ensured that the policies of the government are in place and has ensured Powerbike to develop strategies based on it. Powerbike by looking to mould its business based on the changing political situation has ensured better business opportunity over a longer period of time Economic: Thailand is slowly recovering from recession which will improve the purchasing power of the people. This will help Powerbike as they will be able to ensure that their product is able to target the different segment of the society and ensure growth for their business. This will also help Powerbike to attract customers and ensure that a better mechanism is developed through which they are able to ensure increased sale Social: The social outlook is governed by modern times where the people look towards having new and trendy products. Powerbike has looked into it and designed its bicycle accordingly so that they are able to tap the correct customers. Also, ensuring a look which is stylish and modern has ensured that Braaap is able to work on the social aspect and ensure minimum harm from the changing environment. This will thereby receive support from environmentalist and social people as the product is aimed at improving the condition of the society and ensuring higher concern for the future. Technological: Rapidly changing technology is an area that Powerbike has used in developing its bike. Thailand is witnessing rapid technological integration and Powerbike has ensured that they use it to develop their services. This has helped Powerbike to ensure that their services are better planned and has ensured maximum use of technology. The fact that Powerbike has looked towards having a wide range of bicycles which is aimed at different section of the society shows that Powerbike is looking towards ensuring that they are able to use the technological advancement and develop services accordingly. Environmental: Thailand has laid increased emphasis on environment and has started the carbon pollution reduction scheme which is primarily aimed at reducing pollution. Powerbike has understood it used it by designing bicycle which do not harm the environment and look towards concerving the environment shows the steps taken to reduce carbon. This has helped Powerbike to ensure that the bikes developed by them provide concern for the environment. Also, the fact that the government is looking towards promoting bicycle as a means of transport and giving boost to cycle tours will further act as a stand which will help to reduce the amount of environmental degradation and will thereby help to preserve the environment. Legal: The government has also framed rules and regulations regarding the manner business are to be conducted in Thailand. Powerbike has ensured that they match the requirements which have helped them to meet the legal requirements. This has also ensured that Powerbike to be able to perform and carry their business without any legal intervention and will thereby ensure long term association with the country. The support the government is providing especially to players looking towards reducng environmental hazards will further receive support from the government and will thereby ensure that the business is able to perform in the most efficienct manner. Micro Factors This will look towards presenting the internal strengths and weakness along with the opportunities and threats that Powerbike has and based on it can look towards molding the external environment so that the society at a large is able to benefit and they are able to plan their future strategies accordingly. This aspect looks to understand the internal strengths and opportunities so that based on it the business can look towards developing a strategy through which they are able to improve their business and ensure a mechanism which will help to grow the business. It is as Strengths Weakness Strong brand name due to long term association in the market Limited advertising and marketing Helps to commute thousand of people at low cost Lack of persuasion to make people use the facility Helps to reduce carbon emission and quicker services Lack of consistency in quality Opportunities Threats Using technology to ensure better services Pressure from other mode of transport Increasing concern towards the environment has increased the demand for products which helps to control carbon Reducing disposable income Promoting themselves by highlighting that they look to conserve the environment Availability of mode of transport Thus, Powerbike has different opportunities on which they can work and based on it look towards developing a strategy which will help them to promote and develop a market through which they are able to provide maximum advantage and growth opportunity to its customers. Sementation, Targeting & Positioning Powerbike which looks towards providing transport facilities to a larger section of the society and has looked towards selling different type of bicycle targeting different sections of the customers in the society so that they are able to ensure a presence everywhere (Krasnikov & Jayachandran, 2008). Since, they look towards targeting the lower section of the society and look towards providing services to people like students and people aged below the age of 18 has looked towards determining the market they are going to serve so that they are able to increase their market size and ensure better strategies for the future which will help them to develop their marketing strategy accordingly. This has helped to identify the target market as Customer Aimed at Age Classification of purchaser Purchaser requirements Business Class 16-80 Office Goers Providing travelling facilities at lower cost Students 8-25 Student Goers Providing travelling facilities at lower cost Households 5 – 80 Married and single households Providing travelling facilities at lower cost Lower Income Group 5-80 People having lower purchasing power Providing travelling facilities at lower cost The manner in which Powerbike has looked towards targeting the customers has ensured that they look towards every section of the society. The manner in which Powerbike has ensured that they have a different bicycle for different customers and the support they are going to receive from the government will help them to develop a strategy which will help to improve the quality of service Powerbike while looking to target the above stated section of the population has also lay stress on the different segment of people that they look to cater. This has made Powerbike look towards dividing the customer based on different segments so that they are able to target the correct customer base and ensure maximum development of their business (Cateora, Mary & Graham, 2009). This has thereby been segmented as Targeted Segment Age Group Class of Customer Customer Needs Urban 5 - 80 years All segment of customers Better transport at low maintainence cost and conserving the environment Rural 5 - 80 years All segment of customers Better transport at low maintainence cost and conserving the environment Semi-Urban 5 - 80 years All segment of customers Better transport at low maintainence cost and conserving the environment The manner in which Powerbike has looked towards identifying the different segment has helped to strengthen their positioning as it ensures that they are able to target all people. This has provided the transport with a variety of options to which they can look to provide services. This has further been divided into different factors like behavior, social economic status and psychographics. They are as Geographic Urban, Sub-Urban, Small Town & Rural Demographics Low Income people, Students, Senior people, Students resifing at universities and people below the age of 18 Social Economic Status Having priced the product in a manner where different section of the society can look towards purchasing the product Psychographics Improved customer servcie by developing a model through which they are able to target all section of the society Thus, Powerbike has identified the target market and positioned their services in a manner that it will ensure maximum customer satisfaction and will help them to grow (Robin & Susan, 2003). The availability of different type of bicycle will further help Powerbike to improve their business and ensure that they are able to target the correct customer base. Promotional Plan Powerbike has laid special stress on marketing of their bikes. This is vital as marketing the product aggressively will ensure that customers accept the product easily and will help to ensure maximum sales. On the promotion front Powerbike looks towards using different media. The company looks to spend the same in different areas so that the benefits of different form of promotion are availed. The company looks towards advertisement, billboards, pamphlets and other form of advertising so that awareness about the product can be spent. Thus, Powerbike has looked towards using media and ways to advertise their product so that customers become aware about the product and look towards spreading awareness about the product (Bangs, 2002). This will help Powerbike and will result in increased sale and help the business to ensure proper growth and return in the future. The promotion strategy adopted by Powerbike will also ensure that they provide consistency to the manner the products is designed and the price that is charged. This will help Powerbike to ensure that the bikes are easily accepted by the people and the customer satisfaction as a result can be enhanced due to it. Powerbike also looks towards advertising by receiving the required support from the government and look towards sponsoring different bicycle tours so that the more awareness can be spread. Further, the manner in which the government is looking towards making it mandatory for students going to university to ensure that they have bicycle will further help to promote their product Powerbike also looks towards bringing forward the different benefits that the customers using the bicycle will get. On this front they also look towards highlighting the social, economic, environmental and personal benefit that the individual will get. Thus, Powerbike looks towards using a different range of mechanism through which they will be able to promote their product and services has ensured that they are able to work on the promotional front and get the required developments which will benefit the business greatly. Future Plans Powerbike looks towards increasing the sale of their bicycle my creating awareness and bringing forward the manner in which the society, customer and all associated with the society will benefit. The company looks towards receiving different support from different departments so that based on it Powerbike will be able to develop their services in such a manner that will help to increase the business and ensure that Powerbike is able to earn better revenues and support the business model over a longer period of time. Conclusion The report thus looks to present the manner in which Powerbike has looked towards developing its products and ensured that they are able to market it properly. The mechanism which Powerbike has adopted has ensured that they are able to work on different aspect of the marketing requirements and ensure better services. Powerbike has also looked towards ensuring that they look towards targeting the niche market and has thereby looked towards developing their services accordingly. This has thereby ensured that Powerbike will be able to provide quality service over a period of time and ensure that their business grows and provides the required return the company is looking for. References Bangs, D. 2002. The market planning guide: creating a plan to successfully market your business, product, or service, Sixth Illustrated edition, Kaplan Publishing Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin:McGraw-Hill Krasnikov, A. and Jayachandran, S. 2008. The relative impact of marketing, research and development, and operational capabilities on firms performance, Journal of Marketing, 72 (4), pp. 187-193 Robin & Susan, 2003. In search of Strategic Management Accounting. Social science Research Network, 14 (3), 29-37 Read More