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Market Segmentation – Power Bike in Thailand Essay

Powerbike is a local family enterprise in Thailand. Powerbike opened one-stop retailer bicycle in 2006 at Roi Et, Thailand. Roi Et is a city in north east part of Thailand. Powerbike sell a lot of kind of bike, and also the bike with a specialization function. Powerbike also provide for service and repairing for the bike. Furthermore powerbike is a one-stop retailer within quality and reasonable price.

In the Marketing Segmenting there are four kind of segmentation, they are Behavioral Segmentation, Demographic Segmentation, Psychographic Segmentation, and Geographic Segmentation.

Behavioral Segmentation is the most powerful type of segmentation because it uses actual consumer behaviour or product usage to make distinctions among market segment (Farrell & Hartline, 2005). Demographic Segmentation consists of dividing the market into group based on variable such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality (Kotler, Brown, Adam & Armstrong, 2004). Psychographic Segmentation is based on consumer characteristic. Psychographic Segmentation is based on differences in psychological traits (personality attributes and motives), key demographics, and lifestyles (the expression of the two former categories) (Elliot, Rundle-Thiele, & Waller, 2010). Geographic Segmentation are the areas in which buyers reside, such as coastal, inland, urban, rural, tropical and temperature (McColl-Kennedy & Kiel, 2000).

Actually, the main function of the marketing segmentation is to explore more, to set the target market. This segmentation will helpful for the marketer to set their target market, base on the behavioral segmentation, demographic segmentation, psychographic segmentation or base on area, use the geographic segmentation.

Q1. Based on Powerbike , Roi Et —provide a detailed description of 2 market segment profiles from their current consumer market. (use specific demographics; psychographics & behavioral variables). Why are these two segments different?

Demographic segmentation is segmentation base on variable of people, such as age, family member, life cycle, income, occupation, education, religion, race and also nationality. Base on the demographic segmentation, this segmentation can make the specific of the target market. For example in the average of age, kid in a family will use kid bike, when the kid growing up, become a teenager, the teenager will change the bike to the suitable size. When the teenager becomes an adult, the adult will change the bike again, and will use an adult bike. Furthermore in income, someone who had low income, mediocre income and high income will have different thinking. Levels of income will make people think in the different ways and affect the way they make decisions also. People with high income will purchase a bike within good quality and also choose the bike within specialization faction. However people with in low income will purchase a bike base on what they needs.

Psychographics segmentation is a segmentation base on consumer characteristic. Psychographics segmentation makes us understand the way consumer act and think (McColl-Kennedy & Kiel, 2000). In this psychographics segmentation, teenager from high class family for example, the teenager will spend more money to purchase something. When they buy a bike, they will choose bike with specific function such as, bicycle motocross (BMX) this bike can do dirt jumps, mountain bike, or a bike with high speed.

Behavioral segmentation is one of the most powerful more then the other of segmentation. Behavioral segmentation is base on people attitudes and behavior. For example there is a famous brand of a bike, with a good quality and also reasonable price, a slightly difference in price, people may not think about it, because of people already known about the brand and also the quality. Hence, people will believe with that brand and purchase it.

Every segment has different effect to set the specific target market. In this case, powerbike use two different segmentations to set their target market. First powerbike use demographic segmentation and the second, powerbike use psychographics segmentation. Demographic segmentation is to set their target market base on their age, family member, life cycle, income, occupation, education, religion, race and also nationality. In other hand, powerbike use psychographic segmentation to set the characteristic of powerbake customer characteristic. All people, in all age can use bike. Furthermore people have their own reason to use bike. There some people use bike as their transportation tools, there some people use bike as their hobby or to do some sport activity. For example university student and housewife they use bike for support their activity and also they use bike for different reason and major also.

First, base on demographic segmentation, a university student and a housewife will think, purchase and use bike for different reason and also different function of the bike. University student will use bike as their transportation tool, and also in their ages, they need a fashionable bike. Thus most of them will go to purchase bicycle motocross (BMX) bikes. Since they think this type of bike is fashionable and not bad at the speed also. With this kind of bike they can do dirt jumps, street riding and also in a few area there are BMX ranching. However, for a housewife, she will not purchase BMX bike because it fashionable. She will think to use bike in the other ways. For example, when she go to the market, and she buy many things such as, vegetable, meat, and other things. She will need a bike with the basket in front of the bike to put all of their things, so it will make her easier to bring their things and more simple. Furthermore in a housewife ages, they will think more about the quality and value of the bike not like a university student.

Second, base on psychographic segmentation, in a student and housewife lifestyle will be so very different. Student, who likes to do ranching, will purchase a bike with a high speed of bike. They will purchase road bike, also known as racing bike, because it is the fastest and also lightest bike category. In other hand, housewife will purchase a bike base on the quality, price and also the function. The housewife will choose bike that will help her a lot. For example, women specific bike. Women specific bike are usually fitted with ladies saddles, smaller frame sizes and alternative colours, and are designed to make women feel more comfortable.

Base on the certain segmentation, powerbike can set their target market and make the specific of the product also. Demographic segmentation help powerbike to set the customer need base on age, family member, life cycle, income, occupation, education, religion, race and also nationality. For example in student ages, they need a bike more fashionable. Thus they will choose BMX. However, housewife will think in the different ways. Thus, housewife will purchase bike with the specific design and helpful for her to do activity. Base on physiographic segmentation, both student and housewife will have a different lifestyle. Thus they will purchase different type of bike also. Student who like to ranching in the road will purchase road bike, and housewife will choose women specific bike, because it will fit them and also comfortable for housewife.

Q2. What type of target strategy has Powerbike adopted? Justify your answer.

In the target Marketing Strategies there are five basic strategies for target market selection. First is single segment targeting, this targeting strategy is about give specialists in a particular product category, for example Starbucks, Porsche, and Ray-Ban. Second is selective targeting that has multiple capabilities in many different product categories use selective targeting successfully, for example Procter & Gamble (P&G). Third mass market targeting this targeting involves the development of multiple marketing program to serve all costumer segment simultaneously, for example coca-cola. The Fourth is product specialization these strategies for expertise in a product category can be across many different market segments. The last one is market specialization this type expertise in one market allows to offer customized marketing program (Farrell & Hartline, 2005).

Furthermore, powerbike is adopted single segment targeting. Since powerbike product one type of product but has a specialization of the product. Powerbike, product a bike and the specialization is many kind of the type of the bike such as, mountain bike can handle any terrain, road bike the fastest bike, women’s specific bikes this type will make women more comfortable when ride the bike, children’s bikes for children, hybrid bikes this type take design features from road and mountain bike, and bicycle motocross (BMX) can use for dirt jumps, street riding and also BMX raching. However, adopted a single segment targeting, powerbike will fully understand what their customer need and want. In the other hand, powerbike also can be focus in their target market base on the powerbike specialization product.

In the target market strategies there are five basic strategy, single segment targeting, selective targeting, mass market, product specialization, and market specialization. For powerbike, powerbike adopted single segment targeting, because powerbike product one type of the bike, but the bike has the specialization, mountain bike, road bike, women’s specific bikes, children’s bikes, hybrid bikes, and bicycle motocross (BMX). From adopted a single segment targeting, powerbike can fully understand what the customer need and want.

Q3. Develop an appropriate positioning strategy for Powerbike? Justify

In the positioning strategy there are seven approaches in positioning. There are using product characteristics or customer benefits as a positioning strategy, basically focuses on the product or customer benefit. Pricing as a positioning strategy, base on price and quality. Positioning strategy based on use or application, this type of positioning use represents a second or third position. Positioning strategy based on product process, is to associate the product with its users or a class of users. Positioning strategy based on product class, have to make sure critical positioning decisions. Positioning strategy based on cultural symbols, entrenched cultural symbols to differentiate their brands from that of competitors. Positioning strategy based on competitors, type of positioning strategies, and an implicit or explicit frame of reference is one or more competitors type of positioning strategies, an implicit or explicit frame of reference is one or more competitors (marketing91, 2010).

For powerbike, powerbike will use positioning strategy base on use or application. “Director-general Soithip Trisuddhi said there were more than 6,840,000 motor vehicles registered in the Bangkok area as of October last year, up 6.2 per cent on the 6,444,000 in 2010. On average, 1,225 new cars were registered in Bangkok every day last year, increasing from 991 in 2010, while the total length of the city road network remained the same at 4,149 km (“Bangkok traffic expected,” 2012). Base on it, Bangkok is one of the cities with the high private vehicles. Thus, that makes Bangkok so very crowded and also has traffic jam all the time.

When powerbike open the second one-stop retailer in Bangkok, this is will help Bangkok in reduce the traffic jam and also less pollution. Furthermore this is will be a good challenge for powerbike, because Bangkok is the capital and the largest city in Thailand. Thus, with it powerbike can growing their retailer and also can increase their sales. In the positioning strategy there are seven approaches. They are product characteristics or customer benefits as a positioning strategy, pricing as a positioning strategy, positioning strategy based on product process, positioning strategy based on product class, positioning strategy based on cultural symbols, positioning strategy based on competitors, positioning strategy based on use or application. In powerbike case, powerbike will use positioning strategy base on use or application.


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