Marketing Opportunity for Power Bike in Thailand - Assignment Example

Executive summary The use of power bike is mainly concerned with reducing over reliance on use of motor vehicles and other sources means of transport that are expensive and environmentally degrading. Marketing is a strategic step undertaken to harmonize the relating ideology of how customers are serviced by a business entity. This is one of the strategic involvements that power bike company has undertaken in Thailand to score their contemporary positioning in the market segment. The company is set upon a basis that the consumers of a commodity are the key determinants to its supply, so that should they be missing then there is no enterprise to score their needs, because there would be nothing to necessitate the quest. Due to the existence of the consumers to provide for their formidable market, the forerunners of Power bike entity are set to satisfy their consumers' demands. Their entrepreneurial involvements target a market to satisfy the travel needs alongside complementary needs such as recreation. Introduction The report herein is about a marketing and strategic approach to establishing a marketing opportunity, both in essence and practicability within the Thailand region and neighboring capital, Bangkok. The business in question is that of power bikes which has been set by a company entitled to a family setting; that is, by the two siblings Nui and Ning. This region is globally reputable for the biking business especially that in its current standing it is on the global picture of shedding a limelight to the biking industry. The biking industry is used as a sample to a business approach strategy aimed at incorporating excellent standards in the entrepreneurial world. The method here entails an explanation to all the parameters as regards aspects like capital, apt explanations to the demographics and psychographics to the immediate community and the future expansion strategies and possibilities. In this regard, the socio-contextual framework is some of the major parameters in question yet to be seen into. They include the population of the area, socialization patterns, economic activities in the broader perspective, education levels of the local residents as well as their international immigrating counterparts, governance of the region and related demographics, skilled versus non skilled manpower, just to mention but a few. Socialization agents like other private corporations and organizations like Rotary International; which has solely in its capacity been of service to governmental interest’s further boost the enterprise. This implies that the government is fully in support of the biking industry idea since it has been on the forefront in advocating for such economic involvements. The reason attributed to this is that, for one, the business is the type that is viable in all respects; so that it addresses both socio economic issues as well as the environmental issues of the broader community. It is therefore considered as both economically viable as well as environmentally friendly. This has not only given the managers an upper hand when it comes to product promotion to the public, especially with the influence of environmentally conscious individuals. For instance, the national environmental campaign drive has severally sited the enterprise as one of the national and international model businesses for the conservation of the ecosystem as it should be. History of the Power bike The power bike is an invention of two siblings Nui and Ning. Their contribution to use of power bikes emanates from an inspiration from their parents who owned bicycle shops. In addition to attaining business related degrees from different universities, the two had developed the passion since childhood. The power bike business came into existence in 2006 [WHe11] in a northern city of Roi in Thailand. The siblings began their operations as a retail shop offering wide varieties of bikes to the larger Thailand population. Their management skills and massive support from both the public, private organizations and the government has seen their rise into fame. Today, their power bike company is a giant enterprise commanding almost 30% of the power bike industry. Their expansion into neighboring countries has also increased their popularity [Joh10]. Demographics and Psychographics The current population of the Thailand country stands at 70 million people [Ago10]. Five years ago, Nui and Ning projected the estimated growth at the rate of 0.615% per annum. The rising population has greatly opened up a market opportunity for power bike companies. The population of Bangkok, the capital city of Thailand is currently standing at 20 million people. According to the ministry of foreign affairs the population growth rate as per 2009 stands at 0.615% and 0.566% in 2011 population results. The population comprises of 21% of people between ages 0-14 years. People aging between 15-64 years occupy a whopping 70%. The remaining 8% is occupied by people who are 65 years and above [Min11]. The youthful age in Thailand is between 16-35 years old who are estimated to be the largest percentage of people owning power bikes. Products and Services range Power Bike Company trades in virtually all bicycles and accessories. The category of products offered includes; Mountain Bikes which are best suited for any terrain; be it level or rocky as well as mountainous Road Bikes, which are also referred to as racing bikes. They are best known for being multipurpose and efficient as regards their speed. They are also the lightest and used for recreational purposes. Custom made bikes for women. This is the type which is designed to have a low frame that can be used by women with ease. It is designed to be light and well cushioned to protect from any probable injuries during motion as it is cycled. Children's' Bikes which are specifically for kids. They are of varied sizes depending on the size and comfort of the child. Hybrid Bicycles. This is a special type that is designed with gears and can be used for both roads as well as mountainous regions. BMX (Bicycle Ma-cross). They are the type designed for gymnastic maneuvers and can even be used to cross a rocky and shallow river. Wheel chairs for handicapped that are automated and simple to use are also available. Spare parts and bike related machines are also available to its wide range of customers. Alongside the product range that power Bike Company provides, there is a range of services it also offers. For instance, it has technical support for its goods. That is, there are qualified technicians whose task is to provide repair and maintenance services to the range of goods offered by the company. The service is more often than not provided during the agreed upon period in the warranty terms free of charge. The company also offers free delivery services to their commodities. The company also provides technical advice for its clients in addition to providing rewards for its esteemed customers. Competition and Market Description The company has constantly enjoyed a larger market share since it has dominated the market with a whopping 30% share. The other market operators include other automobile companies like the motorbike companies; herein consisting the Honda company, Bajaj auto limited among others. Other than this, the other competitors are the Toyota Company, which trades in public service vehicles that have also a substantial share in the market. Fortunately for the power bike industry, there has been sufficiency in addressing efficient transportation, affordable costs and environmental championing [Tim12]. These three areas have focused on the economical, social and environmental concerns of Thailand; a combination that has never been met by other sectors in question. For instance, the public service vehicles are one of the major causes to air and noise pollution in Thailand owing to the dense population and jamming on the roads. The motorbike sector also have not championed for a cleaner ecosystem. The power bike company has used these shortcomings as the reason to coming into the competition to address both immediate as well as long-term plans of the people and Thailand. In addition, Thailand hosts a good number of tourists [Tou10]. This makes the destination quest for more attention in the product and service industry. For example, tourism directly affects the transport industry; this means that all the stakeholders in this sector need to address this concern. To be appropriate, power bike has seen the need to address the concern. They have shed light on the capabilities of the biking transportation in meeting the needs of the tourists, especially those spending long moments within Thailand. The biking transportation is receiving a favor after the government through its corresponding agencies has stood its ground in encouraging the tourists to board the bikes in their entourage; especially for short destination travels. The power bike company targets the school-going students especially at college and university level. According to the statics provided above, the highest percentage is youths who use the bicycles. Another interesting fact noted is that women are increasingly using bikes as means for transport as compared to other continents like Africa and America where women have neglected bikes as means of transport. It is for this reason that Nui and Ning provide custom- made bikes for ladies. The bikes have smaller frames and saddle fitted and come with varieties of colors that impress the females. The government of Thailand has adopted a bike hire service that is widely used in countries like Australia. Melbourne Bike Share (MBS) [WoF10] is widely used by municipal council of Australia. The government of Thailand has adopted the method and provides million of bikes to her population every day. This poses a threat to the power bike companies as bikes are easily accessed at an affordable rate without fear of incurring cost of repair and maintenance as an individual. Nui and Ning has found a way to round through this stiff competition by offering direct after sale services to its customers. Nui and Ning have also employed professional personnel who repair and handle breakdown of the government businesses. Due to the overwhelming demand, Nui and Ning extend their services to the government when contracted. Differentiation of power bikes products and services from other competitors Nui and Ning opted to maintain direct contact with their customers as a means getting direct feedback and attending to them efficiently. Through their website, they are able to advertise their products quickly. They have also embraced social sites like face book where they easily target the youth who are actively involved in such social sites. After sale services and rewards offered to its customers has also helped the company enjoy the market demand. The subsidies offered by the government for bicycle use has been an encouraging factor in increasing the sales for Nui and Ning. The popularity of the Chinese language used in Thailand has also made communication so simple hence increasing sales. Given the differing locality as regards the geography of the area, power Bike Company has considered other non-pricing strategies to aid them market their products and services in Bangkok. For instance, some measures to be undertaken include: Value addition to the free and extra services in existence. For instance, in the provision of free delivery services Formalized education of consumers in the better use of their products A well timed and establishment of good relationship, for instance, with special customers, communications and events Enhancement in the public relations sector to evaluate the public attitudes, changes policies and procedures Power bike producers have 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. The distribution of the giant company all over Thailand has enabled it to compete well with its competitors. The payment methods also vary as credit facilities are also made possible for those who are unable to purchase bikes at once. Hire purchase services are inclusive together with warranties that ensure that the products offered are valid and genuine therefore ensuring quality services to the customers. Product discretion is well done in all the shops and customer service facilities are well handled. To Nui and Ning the customers are always right and must be treated with respect. Macro and micro environmental factors There has been a major concern about over dependence on use of oil as the major energy producer. Oil has great environmental degrading factors ranging from oil spills in the oceans to air and environmental pollution. For this reason, many organizations globally have condemned the high rate at which Asian countries depletes the ozone layer. This is the major reason as to why the government of Thailand has recommended use of bikes as a source of transport. The use of bikes has great advantages ranging from ease of movement, health advantages and social advantages. Bikes are known to maneuver in between jams and this help reduce millions of money and time that people waste on the road as they use vehicles [Edi]. Bikes offer physical exercise, which are highly recommended by health experts. Bikes are also cheaper and the lower class people can afford them besides maintaining them. Bikes also reduce the pollution of both the air and the environment. As people have become more sensitive to their health and environment, many people have embraced cycling as a major source of transport. Thailand attracts many foreign visitors annually and the government has been keen on encouraging their visitors to embrace the use of bikes as their means of transport. The increasing population has been met with many efforts to ensure that bikes are available to serve them. Segmentation targeting and positioning 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. Bangkok is the capital city of Thailand and has a population close to 20 million people according to city population journal of 2010 [Placeholder1]. 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. Thailand is also strategically set in the middle of many Asian countries who share the same social cultural values hence the ease to sell it products. 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. Promotional plan Proposed promotion mix is the major reason as to why the power bike operation has flourished. The current advertisement that they have been running is the “Power man Power bike”. The power bike company provides the most advanced power bikes with the latest technology. The products are efficient and highly reliable, with the company offering a wide range of variety. The company offers highly affordable and appreciate the needs of its customers through the provision of satisfactory commodities. After sale services offered to the customers have greatly increased sales. The provision of genuine and quality products to its clients has brought other competitors to their knees since Nui and Ning have won so many customers. Their operations are well distributed along the country and this has increased their popularity. Rewards by the government and offering of subsidies, which are translated to the customers, has also encouraged many buyers to stick with the bike company. It is this concept that has received recognition and they have made some interesting advertisements that have earned them acclaim. This advertisement focuses on the fact that power Bike Company gives you quality products and services efficiently and at highly affordable prices. Other than this power bike, entrepreneurial entity has also used various promotion strategies like Push strategy as well as the pull Strategy that has ensured the maximal exploration of all available channels of distributing the product to the market. In these methods of advertising Snickers has employed various stratagems like Product comparison advertising; whereby it has enjoyed the benefit of an outstanding product. Other equally competitive marketing schemes include product family advertising; since their products are more to address the regularly used bikes personal protection products, and finally the products benefits analysis set upon the company’s standards for their market dominance [Aus10]. Future expansion to Bangkok Bangkok is the largest city in Thailand with an estimated population of six million, three hundred thousand. However, the greater Bangkok city has an exceedingly abundant population of eleven million, nine hundred thousand. These are estimates with the current population’s estimations for the year 2010. A majority of the locals in the city are middle to low income earners. This has the implication that they are well suited with a cheap and readily available transportation service. This need is well appropriate in the context of the power bike company since it has been their move in Thailand. Concept Testing The power bike management is set to undertake a likening comparability to the viability of their product in Bangkok. They have assimilated this approach basing on the fact that the two areas lie proximally on the same localities. The people share an almost similar culture and other societal linkages. For example, they share the same modes of governance, the same economic impacts, and similar political involvements among other related concerns. This advancement will incorporate first the promotion of the product and management of its brand to form the basis upon which the public will buy the idea from the company. In this regard, the available market shall be given an equivalent approach as that in Thailand. Alongside the product promotion, the company must also be set to carry out a product differentiation strategy to encourage the locals to prefer their commodity. Other factors for Appropriateness of Bangkok city Bangkok city is a prominent city for the common daily traffic jams. It is globally known for this and even reputable to the extent of being used in most renown movies; where crowded cities are the setting of appropriateness. This has been common in most Asian movies where most shootings are done in Bangkok city. Other than this, the government has as in the case of Thailand, greatly encouraged the transportation using this environmental friendly mode of transportation. This will encourage the option of using power bikes for short distance traveling to encourage reduced congestion of the jammed cities, so that instead of insisting on the usage of public service vehicles commuters can opt for the bikes. Alongside the incumbent advocating for the sector, other private entities like Rotary international have poised stern campaigns for the biking transportation. Through campaigns such as “The No Child without a Bicycle Campaign”, [Clu10] and also relevant bodies like the Tourism Authority of Thailand[Tou11] which has also offered a lending hand in the marketing of the commodities. To address the needs of college students who are environmentally conscious, the power bike has stood in for such a quest. It has been a reliable market for their goods and services due to the existence of many universities and colleges in the capital. Finally yet importantly, the biking transportation is one such kind that can offer an aesthetic value to tourists as they travel relaxed and traversing the streets of the city, no wonder Bangkok is regarded as “The City of Angels”. Conclusion The power bike company in Thailand has offered employment to millions of people living in the country. The viability of the business has increasingly led to reduction of oil as a source of energy. Use of bikes in racing, commuter and for recreational purposes has led to reduced overcrowding among the major cities in Thailand. As the Thailand government is seeking for safer, cheaper and environmental friendly means of transport focus should change to larger means of transport with no or little harm on the environment. Introduction and use of electric trains is a solution but at the end most of the electricity is generated using manufactured of oil. As much as a lot of emphasis has been made about Thailand’s bike use environmentalists are still concerned on how remains of the scrap metal are disposed. China and other Asian countries have been accused of dumping their waste products to African countries and developing countries around the world thereby increasingly polluting the environment. Bibliography WHe11: , (W.Henry L. Ho, 2011), Joh10: , (Lisbon, 2010), Ago10: , (Sare, 2010), Min11: , (Ministry, 2011), Tim12: , (Lui, 2012), Tou10: , (Thailand, 2010), WoF10: , (Fung, 2010), Edi: , (Pdnih, 2008), Placeholder1: , (population, 2010), Aus10: , (Australia, 2010), Clu10: , (Rotary, 2010), Tou11: , (Thailand, Touring Thailand, 2011), Read More