A Marketing Opportunity for Powerbike in Thailand - Assignment Example

The benefits of cycling: a marketing opportunity for Powerbike in Thailand Contents Introduction 3 Detailed of the Thailand Consumer Market for Powerbikes 4 Demographic Segmentation 4 Psychographic Segmentation 5 Positioning Strategy for Powerbike 6 Product 7 Pricing 7 Place 8 Promotion 8 Likelihood of Powerbikes Servicing the Thailand Business Market 10 Conclusion 11 References 13 Introduction Powerbike is a retail business based in Roi Et in Thailand that focuses on the production and sales of different type of bikes for terrains, planes and roads. Acting as a one-stop retailer the firm also specializes in the production of different types of accessories pertaining to bikes. Powerbike in the range of after sales services renders repairs to the customers. The firm specializes in the production of different categories of cycles and bikes customizing such in regards to meeting the needs of different consumers. In the niche category it focuses on the production of cycles and bikes for women and children and also specializes in the production of hybrid bikes that would serve the people both on roads and terrains. The retail chain in the production of bikes and cycles for different consumer groups renders priority to the parameters of quality, economy, comfort, safety and security and overall continued reliability. In terms of expansion programs the retail chain focuses to expand its retail operations to the capital city of Bangkok. Bangkok is chosen as the expansion ground for the business owing to the rise of population that in turn is causing the emergence of traffic jams. Moreover the government authority of Bangkok is also found to enhance the promotion of the use of cycles for student communities pertaining to school and colleges. Use of cycles is also considered as a viable opportunity in reducing pollution for which the tourism authority of Bangkok also demands the rise of cycle holders in the region (Ho, n.d.). In regards to the stated cause the paper endeavors to analyze the market of Thailand and Bangkok as a competent market for the sale of bikes and cycles produced by Powerbike. The analysis would incorporate a marketing segmentation study based on demographic and psychographic variables focusing on the Thailand market. Further the analysis would focus on a positioning strategy that would be taken by the company in regards to the Four Ps of marketing to enhance its market in Thailand and Bangkok following which a feasibility analysis of the company’s business in Bangkok would be incorporated. Detailed Description of the Thailand Consumer Market for Powerbikes Demographic Segmentation Demographic analysis of Thailand reflects high amount of cultural homogeneity owing to the fact that around 80 percent of the population in the region speak the ethnic Thai dialect. The region of Thailand is comprised of people pertaining to different nationalities and ethnic origins like Chinese and people belonging to Muslim religion. Population of Thailand can be divided along certain age brackets as children below the age group of 15 years, people belonging to age group ranging from 15 to 64 years and finally a third group consisting of elderly people of 65 years and above. The rate of literacy in regards to male and female population compared reflects that around 96 percent and 98 percent of the female and male population are literates. This reflects an increasing demand for education in the Thai region. Again the density of the population divided based on the male and female sexes reflect that around 0.98 male exists again a single female. Along with Thai language the people can also speak and write English thus enabling them to gain access and understandability of international products. The age group ranging from 15 to 64 years is comprised of literate groups and also is largely populated by male and female gender groups. Thus this age group needs to be effectively focused in order to market products and concepts. Speaking on the religious side the maximum number of the population consists of people pertaining to Buddhists and Muslim sects. Other minority religious groups like Hinduism and Judaism also constitute the population of Thailand. Again the population of Thailand is found to be comprised of both high and low income households such that the people belonging to the low income groups in addition to be suffering from poverty are also struck by illiteracy. Thus children of the lower income groups mostly turn child laborers in the region (U.S. Department of State, 2012). Owing to the above fact it is held that the people would mostly prefer to commute on the basis of two wheelers rather than using automobiles. Psychographic Segmentation The psychographic study of the consumer attributes in the region of Thailand reflects that the region is increasingly getting populated by aged consumers. A survey made along the period ranging from 1990 to 2010 reflects that the number of aged people have risen from 6 percent to around double amounting to 11 percent. This rise in the number of aged consumers in the Thai population is taken to render a large scale impact in changing the consumer attributes. Increase in the elderly population would amount to a shift in consumer tastes from fashionable and fast moving consumer products to more traditional based and sustainable products (Anken, Chaipooopirutana and Combs, 2008, p.46). However the people belonging to the teen age groups in the Thai community tend to get lured increasingly to westernized products and advertisements. Gradually it is noticed that western culture is gradually invading the psychological mindset of the young Thai consumers that tend to procure western commodities and enjoy products based on western concepts. These people thus reflect a sense of modernization in regards to their consumer choices (Yeung, 2007, p.129-130). Moreover the people of Thailand are also considered as such that though tied to their social, ethnic and religious roots they tend to aspire and get motivated by western cultures. The Malaysian people are found to enjoy sports and entertainment activities. Thus they are keen visitors to movie halls and are also keen in conducting sporting events like basketball and swimming. However these people are also tied to strong family values and thus reflect increased respect for the elderly people and their cultures (Jones, 2000, p.241). Change in the consumer culture and attributes of the people belonging to Thailand is found to gain impetus owing to the large scale development of the economic condition of the residents. Owing to the economic policies taken by the government of the region the per capita income of the Thai households is set to increase that in turn tends to alter the buying habits and consumer psychology of the individuals. Thus with enhanced income level the Thai people endeavor to gain products and commodities that would help them enhance the comfort level and develop their living standards. Further these people tend to gain increased awareness of the different options and alternatives of the products and concepts being marketed to them. Increased amount of consumer awareness instigates them to hunt for more accessible solutions to their needs and wants and in turn makes the buying atmosphere gain due complexity. Thus these people would now be found hunting for established retail outlets for gaining access to consumer products and durables rather than procuring them from near vicinity stores. In regards to the above analysis pertaining to the demographic and psychographic parameters it can be stated that the retail business of Powerbike would thrive in a sustainable manner in Thailand. The development of the economic condition and tastes of the people pertaining to Thailand combined with their traditional value sets is held to help the retail business effectively flourish in the region. Again the increase in the number of elderly consumers in the region is also held to help in the enhancement of the two wheeler production business in the region (Wright, 2006, p.390). Positioning Strategy for Powerbike Powerbike to gain an effective market in Thailand needs to work on an effective positioning strategy for the products concerning bikes and cycles thereby reflecting on the different benefits that the people would tend to gain from such. The positioning strategy would be based on analyzing the Four Ps of marketing in regards to the products manufactured and retailed by Powerbike in Thailand. The Four Ps of marketing would mainly focus on the benefits obtained by the consumers through the product, pricing, distributing and promotional activities conducted by Powerbike. Positioning strategy of Powerbike based on the Four Ps would be rendered as follows. Product The bikes and cycles produced by Powerbike in Thailand are manufactured as such to work on the factors of durability and thereby can render long lasting benefits to the people. Moreover the bikes and cycles are manufactured based on a hybrid range so as to render benefits to the people in helping them enjoy riding pleasure both along the plains and mountains. Again such bikes and cycles are manufactured for both genders and also for the niche children communities to deliver a total 360 degree advantage to different type of consumers in the Thailand region. In addition to addressing the above consumer segments the company also helps in rendering benefits to sporting communities in terms of production of racing bikes that help in evading bumps and in taking swift turns. Again the use of cycles produced by the company would gain a significant position in the market owing to the health and environment benefits rendered. Cycling would help in enhancing the health of the people and in safeguarding the natural environment of the region from the harmful effects of pollution. The government of Thailand is found to promote increased awareness for promoting the region as a global tourist spot and thus is held to embrace the idea of reducing pollution. Owing to the above advantages and benefits the products of Powerbike would gain a significant stand in the Thailand market (Ho, n.d.). Pricing The economy of Thailand is comprised of both poor and rich consumers and also by consumers pertaining to both general and sport categories. Powerbike focuses to meet the needs of the different consumer segments by focusing on effectively pricing the different cycle and bike models to help fit the budget of the different consumer groups. In regards to the bikes or motorcycles that Powerbike retails the company sets a price range ranging from 40,000 Thailand Baht to around 900,000 Thailand Baht. Such range of bikes hovers from normal bikes to such that consumers can use for riding terrains. Again in regards to the bicycles the company tends to produce different range of cycles starting from around 7500 Thailand Baht to around 25,000 Thailand Baht. Price varies in regards to the different models of the cycles. High priced or premium ones are such that help the rider enjoy a ride for both along plain areas and in the terrains. Moreover different accessories are also retailed by the company in different price tags ranging 20 to 80 Thailand Baht. Other accessories pertaining to premium range of cycles and bikes vary along 100 to 250 Thailand Baht by the company. However the retail company focuses on rendering free after sales services to the consumers for a period of one year from the date of purchase that in turn enhances the market for the products in Thailand (Rhoden, 2011, p.44). Place Powerbike undertook a robust distribution strategy that used the conventional systems of wholesaling networks to procure the bikes and cycles from existing dealers that is to be retailed by them through the different outlets. Procuring in bulk from the wholesale market enabled the company to render discounts on the products during specific carnival periods or during the launch of a specific new model. The one-stop retail company aimed to gain a mass market penetration in the Thailand region in marketing of cycles and bicycles through exclusive outlets owned by the company or through outlets opened in established malls or shopping arcades. Similarly the company also gained a shop-in-shop place in multi-brand outlets in specific regions to market its products effectively (Dave, 2008, p.198). Promotion In terms of promotional activities Powerbike takes resort of both print and visual advertisements to promote its products to the Thailand mass market. In terms of print advertisements the company focused on rendering a front page advertisement in the leading newspapers and also in the magazines dedicated to sports and tourism activities. Similarly the company aimed to gain a slot in the televisions and radio broadcasting services to help gain a more effective stand in the consumer mindset. Moreover the company also took resort to separate promotional events and road shows to help in creating mass awareness about their products. In addition the company also worked to sending direct mailers to the people in different localities to enhance the level of personal touch. Finally the company also aims to work through the creation of a website and also through creating pages in social networking sites to help the people gain mass awareness of the products (Shimp, 2008, p.449). The following is a copy of the advertisement rendered by Powerbike in regards to selling the range of different bicycles in the rwgion of Thailand. This is a sample of the different types of posters that the company happened to bring out to enhance the sale and create awareness of the bicycle products amongst the consumers in the region. Figure 1 (Source: La Bicycle, n.d.) Likelihood of Powerbikes Servicing the Thailand Business Market Powerbike would be able to gain a feasible market in the business region of Bangkok owing to the presence of a huge amount of population. The total area of Bangkok is estimated to bear a total population of around 12 million people thereby creating a large opportunity for the bicycles and bikes marketed in such region. It is held that bicycle being a cost effective alternative for commutation would be liked by many people in the region for which its sales are held to increase in Bangkok. Again the target consumers in the Bangkok region being middle income level people are also taken to become prospective consumers of the bikes marketed by the retail company in the region. The region of Bangkok being the hub-center for large number of business sectors and companies invites large number of people to reside and commute to different areas resulting in traffic congestion. It is thereby held by Powerbike that the people would thus resort to procuring bikes and cycles for easy transport to short distance areas and thereby can save time and thereby avoids the difficulties of congestion. Further the region of Bangkok is found to host a large number of schools and colleges and other educational institutions thereby attracting a large number of students both from the regional communities and from other areas. Owing to this fact the company can easily locate a huge opportunity for their cycle trade in that the students would certainly like to go for the stylish models of bicycles that the company markets in commuting to school. Similarly the existence of other educational organizations like colleges and institutions also cite a feasible business opportunity for Powerbike to market its products in the region. The government of Thailand also desires to create and enhance the region of Thailand as a tourist hotspot. Thus the government authorities residing in Bangkok focus on reducing the amount of pollution emanating from different vehicles used by the people. In such activity the government is held to focus on the enhanced use of cycles by the different level of consumers both pertaining to the middle and lower income groups in the region. The government authorities of Bangkok are found to cater to large scale promotion to attract the minds of the people in protecting the natural beauty of the region from the harmful effects of pollution. Thus the government authorities are in turn pleading the people to take resort to bicycles for commuting to different places thus helping in reducing both traffic congestion and pollution. Further the region of Bangkok is also found to be a region promoting the growth of large number of universities and colleges to help cater to the educational needs of the teenagers. These teenage groups of people are held to be more conscious in sustaining their health and in caring for the surrounding natural environment in the region. Henceforth owing to the above factors right from countering traffic congestion to acting as a commutation alternative for students pertaining to schools and universities and in also acting as a support for safeguarding health and environment the retail and production chains relating to bicycles and bikes would gain an enhanced market in the region. Thus Powerbike being a retail chain in the bicycle and bike sector is held to gain a sustainable and feasible market in Thailand. Moreover the roads connecting different places of Bangkok are also not found suitable for cars and other forms of transport to be used for commutation purposes by the people. The conditions of the road along with large scale distances in regards to connecting one area with another create a huge demand for the growth of demand for bicycles in such region. Powerbike thus focuses to open up not only new retail branches in the area but is also focusing in opening up an independent retail office in Thailand to conduct marketing and retail activities in a much effective fashion (Ho, n.d.). Conclusion The economy of Thailand is observed to be constituted by people pertaining to the middle income level income groups. The large section of the population generally belongs to the age range from 15 to 64 years. This age group thus consists of both teenagers and old age people who desire to sustain both the health and the natural environment of the region. Thus they are held to increasingly depend on cycles for commutation purposes. Further the region of Thailand and especially the region of Bangkok are filled up with bad roads and heavy traffic disturbances for which the people are found to take resort to bicycles. Thus the business of Powerbike is held to gain a feasible stand in the region of Thailand to market its bikes and bicycles in an expanded fashion. Powerbike in that tends to work out a sustainable positioning strategy focused on the Four Ps of marketing to create a strong hold in the market of Thailand and thereby in Bangkok to market bicycles and bikes. References Anken, A.K., Chaipooopirutana, S., and Combs, H., 2008. Psychographics and Patronage Behavior of Mature Consumers in Thailand. International Review of Business Research Papers, 4(1): 45-56 [Pdf]. 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Available at: http://www.state.gov/r/pa/ei/bgn/2814.htm. [Accessed 1 June, 2012]. Wright, R., 2006. Consumer Behaviour. United States: Cengage Learning EMEA. Yeung, H.W., 2007. Handbook of Research on Asian Business. United States: Edward Elgar Publishing. Read More