The Use of Power Bikes in Thailand - Assignment Example

The Use of Power Bikes in Thailand Executive summary The last decade has been marked with various changes worldwide. These events have been phenomenal and have taken place with the main objective being able to survive. Environmental awareness has pushed people to conserve the environment. It is for this reason that Nui and Ning the power bike inventors decided to introduce and advocate for use of power bikes, which has low environmental degradation on the environment. The two, a brother and sister targeted the large population of Thailand. Their invention was backed by various organizations including the government. Use of power bikes becomes a better option due to health advantages it posses and the fact that power bikes can quickly maneuver against traffic jams and are cheaper compared to vehicles [Asi11] . The research aims at penetrating through Thailand’s economy through sales of power bikes and bicycles. The research entails the marketing opportunities available due to the large population in Thailand and its neighboring countries. The use of power bikes aims at reducing traffic congestions and waste of time and money in Thai roads. Introduction This research seeks the advantages related to inventions of power bikes in Thailand. The use of power bikes has the following advantages; the physical fitness aspect involved while cycling has encouraged a larger population of Thai people into use of power bikes. The fact that power bikes are cheaper as compared to vehicles has also lured a larger population into using power bikes. The environmental concerns and the massive pollution involved with Asian countries has led to many organizations and various governments to embrace cheaper methods of transport with low degrading effect on the environment. The massive advertisement through the media and positioning of the power bike business has led to its successful use. Private organizations such as the Rotary club have been in the forefront to advocate for use of power bikes in Thailand. The government through its ministries of tourism has also been playing a major role in advocating for use of power bikes with the main aim of reducing pollution [Wng10]. Power bike companies have employed a larger population of Thailand people hence creating jobs. The government also hire bike to its population therefore advocating for use of power bikes. However, despite the fact that use of power bike in Thai has been embraced by many people, there are a couple of limitations, some of the limitations include; competition from other sectors of transport, which are also cheaper such as the railway transport and motor vehicles. Some social and cultural factors also hinder the full use of power bike as the single mode of transport. Due to different social classes found within a community, different people of higher strata will not prefer to use power bikes as their means of transport. With the increasing population in Thailand and its neighboring countries, it is believed that use of power bike will keep on increasing. Important information regarding the cycling industry in Thailand can be attained by the use of a variety of sources from the internet. However, some of the methods implemented by this particular business organization include product positioning, advertisements and communication media to gain access to the target market. Organization Roi city in Thailand boasts of a one-stop Power bike retail and wholesale shop. Two family members started the shop in 2006 after developing interest in the business since childhood. Nui and Ning attribute their success in the business as an aspiration from their parents who also own a similar shop. Nui and Ning are now the largest distributors of power bikes in Thailand after expanding and opening many branches all over Thailand and the neighboring countries. The shop specializes in manufacturing bikes and their accessories on a retail and wholesale basis [Ali06]. Products and services The large enterprise deals with different varieties of bicycles that suit the needs of every consumer. Some of their products include; the road bikes that can be used for racing and recreation. BMX bikes are also available and are used for sporting and recreation purposes. Various modes of women bikes fitted with saddles and little frames are available for women. They are custom made and therefore suit all the needs of the consumer including the color. Children’s mountain bikes are also available in different sizes to compliment the different ages of the children. Hybrid bikes are also available not forgetting the mountain bikes. The hybrid bikes are suited for general purpose as they can be used for recreation and commuter services. The mountain bikes are made special for use of hard terrain roads. The shops also provide spare parts and after sale services to its customers. The power bike company also provides the wheel chairs of different sizes with the latest atomization that requires less energy to use and little knowledge to operate. Competition This business has identified some of other businesses that will offer it direct competition. Such businesses include the likes of KCI bicycle and Parts Company limited. Aojaisai ordinary partnership and BMX alloy frame bicycle also joins the list of stiff competitors. The Power bike business organization seeks to root itself in the market by taking advantage of the following customers: women, students in colleges and universities, sports personalities, the handicap among many others. With custom-made bicycles that are of high quality and specifically designed to meet the needs of its target market then this business is bound to realize abundant profits. The power bike business also faces stiff competition from the government that is providing bikes for higher especially to the target group, which includes the college and university students. Rising living standards and inflation also pose a major threat to power bike expansion due to rising costs of inputs in the business. Differentiation of power bikes products and services from other competitors A survey that was recently conducted in Thailand by Asia-Australia marketing journal indicates that a majority of people in Thailand craves for bikes, however they are deterred by the fact that they are presented with low quality bicycles. Power bike producers Nui and Ning have taken this advantage by producing high quality products therefore attracting the largest share of customers in the field. People have generally become sensitive to their health and therefore they have developed a tendency to like the use of bikes as compared to motor vehicles. The target market prefers that the bikes be of high quality while at the same time meet their specific needs. It is for this reason that Nui and Ning has provided its customers with the custom made bikes that equally suit their needs. Power bike producers also identified several problems that they have corrected creating a big difference between their business and their competitors hence giving them the largest share of customers. The identity that Power Bikes has established for itself in the recent past has been ensuring high quality while at the same time taking care of the needs of the wide range of customers in Thailand. However, with the environmental issues coming up Power Bike can increase its scope of the market by sensitizing the people on environmental affairs. In this way it will able to get the confidence of the young population and hence increase the demand for its bikes. Some of the limitations include; with the highly qualified technicians, the business will be a position to repair goods that are sold to the target market by its direct competitors. Secondly, by increasing the number of technicians Power Bikes will be in a position to produce a large number of bikes to cater for the expanding market. Thirdly, Power Bikes will offer after sales services to the customers. The prices of power bike are cheaper therefore attracting large numbers of customers. This has been the reason for success of power bikes in Thailand. Nui and Ning also provide credit facilities that have enabled customers to purchase their products. The shops are well distributed with the marketing brands available in almost all the streets hence cannot be mistaken. The payment methods include the cash on sale method, higher purchase and credit methods. Market description Bangkok is the capital city of Thailand and has a population close to 20 million people according to city population journal of 2010 [Cit10]. For this reason, the popularity of bicycles has increased in Thailand following a chronological sequence of events in the last decade. Some changes like people becoming generally environmentally aware in the world have led to cheaper modes of transport. Power Bike has invested heavily on its future in order to ensure survival in an ever-competitive market. When a business unit is located in a suitable place then it attains popularity in its target market by the virtue of being convenient. In high population areas, profits are realized due to accessibility. Positioning strategies provide the means by which business organizations create an image for themselves in a market. For this reason, the power bike has strategically positioned itself in order to maximize its profits and serve its customers better and quicker. The strategic location has also helped the power bike enterprise to fight its competitors by acquiring feedback from their customers. There has been an increasing trend on use of power bikes. According to a recent survey by Asia- Australian journal [Ima10], it was noted that almost 60% of Asian use bike as their mode of transport. The journal also indicates that governments are continuously advocating for use of bikes in Asian countries. Due to this, the Thailand government has purchased many bikes that it hires every day to million of its population. In this sense, the power bike identified a market niche for its variety of bikes. The highest percentage of Thailand’s population includes the youth of between 16-35 years who continuously use the bikes as means of transport. Students attending colleges and universities are the target group when it comes to power bike use. Because of this competition, the power bike has greatly concentrated on production on different models of bikes majorly the women and children bikes. While the government is facing losses due to theft and breakdown of its bikes Nui and Ning takes an advantage in this by offering after sale services it s customers in order to maintain and protect its customers. Power Bikes seeks to identify itself as sensitive to the changes that have taken place in the environment in the recent past. In this way, a lasting impression is left in the minds of the target market. It is important that businesses have positioning concepts in order to thrive in a competitive market place. In the Thailand, people are interested in bikes hence its popular use. Bangkok has also witnessed growth in the number of people interested in using bikes. By presenting the people with the advantages associated with the use of bikes, Power Bike will ensure that it identifies with the needs of the people. Micro and macro environmental factors Due to congestion, many people in Thailand prefer to use bikes as their means of transport. Recent global forums have increasingly opposed the use of carbon emitting sources of energy hence cheaper and safer methods such as use of bikes are encouraged. Bikes are gaining their popularity because they can easily access different sections of the road at any time. Modification of various parts of the bike has led to cheaper means of transportation such as the carts. Easy and cheaper maintenance costs have also led to increased use of power bikes. In Thailand, ten percent of the population consists of the senior members of the society. These people feel the need for bicycles due to their fragile nature. In addition to this, special groups of people who are not in a position to drive use wheelchairs. Such people include the handicapped, people who do not have driver’s licenses because they have not qualified to use them, people who are underage and those who attend school and work. These special groups have their own special needs; therefore, Power Bikes has taken advantage and ensured that it prowess in the manufacture of bikes by manufacturing bikes that are suitable for use by the individuals mentioned above. The benefits of cycling can be grouped into categories that include health benefits, environmental benefits and social benefits. Briefly, here are some of the benefits that may be attributed to cycling; the use of bicycles is environmentally aware, as they have no emissions to the environment. It virtually has not carbon footprint. The use of bicycles increases the mobility of its users. This is often the case for those people who have no access to motor vehicles. Such people may include those that do not have drivers’ licenses, those that cannot afford vehicles and those who would rather not drive such as people with health defects like arthritis and back pains. Scientifically speaking, bicycles are the most energy saving and soundproof machines ever invented. Efficiency in machines is calculated by comparing the energy input and the energy output. People who are health conscious find cycling as a way of exercising. Health experts recommend that people take at least thirty minutes of their days taking part in moderate to intensive physical activity. Due to this revelation, people can keep at bay diseases such as diabetes, heart complications and tone their bodies. Cycling also saves money in these harsh economic times. Cycling offers a good value for money as it is in everybody’s interest to cut down on costs for use for the next best alternative. Cycling cuts down on the costs attributed to maintaining and driving a motor vehicle and the parking fees. Segmentation targeting and positioning Power bikes investors target the low-income earner in Thailand. This is by producing cheaper safer and better means of transport for them. The main agenda behind the wide variety of bikes and services is to increase the scope of the business. The owners of the business who are determined to provide what other bike manufacturers cannot provide can attest the business slogan. The specific approach to business has enabled them to manufacture the following range of bikes; Mountains bikes are manufactured to last long and are easy to use. This is attributed to the fact that they are specifically designed to suit any terrain. They target sports personality and the younger generation. Racing bikes are available at cheaper rates. They are light, durable and strong. Different sporting companies contact the producers with their specific designs that they require. The business has also embraced gender sensitivity in its catalogue by introducing women specific bikes. These particular bikes are designed to suit the ladies by having smaller saddles, colors that appeal to ladies and have smaller body frames. There are also children bikes, which are smaller and are hardy. Hybrid bikes which are bikes that are specifically designed to suit the different terrains. Motocross bikes that are meant for sporting activities About 10% of people living in Thailand use wheel chairs according to Asia-Australia journal. Power bike producers like Nui and Ning have taken advantage of this situation by producing custom-made wheel chairs. They also produce wheel chairs that are automated and easily to use with little or no knowledge. Promotional plan Nui and Ning have increasingly advertised their products through different means including the media, brands on their products, posters and through services such as after sale services. The use of well-understood Chinese language has made communication with the customers quicker and easier. This is attributed by the fact that Nui and Ning get the feedbacks from their clients faster. Billboards and promotional sporting activities have also been in the forefront when it comes to promoting the giant enterprise. The company also provides rewards to its esteemed customers as a way of promoting its business. The company also takes records of its customers and conducts a follow up after duration of time. The company maintains contacts with its customers by posting regular updates on their websites informing them of new offers and products available. All businesses have gone a notch higher in establishing their popularity in the market. This has been the case for Power Bike business organization as it provides after sale services to its clients. In this instance, it provides repair services for its clients. Their main slogan is ensuring that they produce quality bicycles at fair prizes and that by ensuring that they produce quality hence boosting their popularity in the bicycle market while earning them a profit. Future expansion to Bangkok Power Bike has aimed at hitting the market in Bangkok for as long its life span dates. Bangkok is a densely populated area with a population of about 7 million as of May 2012 [Goo10]. This population is concentrated in Bangkok whereas the extensive Bangkok area has a population of at least twelve million people. Power bike investor’s aim at hitting this target with major competitors like KCI bicycle and Parts Company limited competing for the same share of customers. The hiring of bikes by the government also poses a major threat to power bike expansion. The increasing number of bike owners is also proving to be a deadlock for power bike investors in Thailand even though a wider market is open to African countries . There have been problems that have affected the motor vehicle industry that has reduced its popularity in Bangkok. Some of these problems include traffic jams. Until recently, traffic jams were not a global phenomenon. Another problem has been the fact that the entire population in the world is becoming environmentally sensitive. The market for motor vehicles is slowly declining for these reasons and due the fact that people are becoming aware of health issues. The prices over which Power bike sells its bikes is lower compared to other bike vendors in Thailand. This gives this business organization a strategic advantage in the market. Thirdly, the government of Thailand has involved in various initiatives to promote the bicycle industry. Such efforts include efforts by the Tourism Authority of Thailand to sensitize the people on the advantages of bicycles as compared to the use of motor vehicles. One disadvantage that may be attributed to the use of vehicles would be the fact that people can often times not appreciates the aesthetic value of nature by the virtue of not being able to access a place that a vehicle would not due to mobility to particular tourism destination. There was also the “No child without a bicycle” campaign, which aimed at ensuring that every child in Thailand went on its day-to-day business with the aid of a bicycle. In this case, no child was to walk to school but instead use bicycles as their means of transport to schools [Rot07]. Fourthly, the population of Bangkok entails the working population and students. Students are known to be environmentally sensitive and are bound to embrace the use of bikes in their daily activities. Forty percent of the population in Thailand is made up of the young generations who are mostly working or are in collage. Being in a position to win them would mean that Power Bike could finally beat the main bike manufacturers in Thailand by a landslide. As a strategy to ensure the success of this business, once Power Bikes is capable of selling a majority of its bikes to either the working population or the people who are involved in university of college education then, a demand for the bikes will be generated and therefore people in other occupations will follow suit. This strategy should be in the minds of the creators of this business organization. Its implementation would ensure that they are able to penetrate the market efficiently. Conclusion The invention and use of power bike has continuously received massive support globally due to various advantages associated to it. The marketing strategy and the support by the government continue to prove the use of carbon emitting energy sources wrong. The health and environmental advantages associated to cycling promotes the use of bikes. The continual provision of services to the poor people in Thailand has helped increase the countries per capita income over the last five years. The ease of management and acquisition of a bicycle in Asian countries is a factor that should be adopted by third world countries that lose millions of their incomes annually to carbon emitting energy sources. The reduced reliance to use of oil as the major source of energy is a factor to be admired from Thailand economy. Bibliography Asi11: , (Direct, 2011), Wng10: , (Lui, 2010), Ali06: , (Alibaba, 2006), Cit10: , (population, 2010), Ima10: , (Mundi, 2010), Goo10: , (Maps, 2010), Rot07: , (Rotary, 2007), Read More