The Current Consumer Market of Powerbike - Assignment Example

 The Current Consumer Market of Powerbike Introduction Cycling is recognized as one of the most renowned and effective modes of transportation to cover short or medium distances. In most of the countries, bicycle is utilized not only as a road vehicle but also a mountain transport vehicle, to ease the difficulties of travelling. Moreover, cycling is a human powered transport because it uses individual muscle power to transfer from one place to the other. With due regard to this fact, cycling is highly appreciated by the individuals all across the globe as a mode of exercise, which helps in reduction of varied types of physical disorders such as arthritis and cardiovascular diseases. Furthermore, cycling is also regarded as an experience, which provides relaxation from the entire day of hardship along with entertainment. In addition to the above mentioned facts, cycling is utilized as an amazing vehicle for enjoying various beautiful regions, in a miraculous way, which is highly preferred by the travelers and the tour guides as well. Due to this cause, cycling is considered as a significant vehicle for the individuals all round the world (Scribd, n.d.). The objective of the paper is identifying the advantages available for Powerbike in the market of Thailand. In addition, it also includes the varied market opportunities of Powerbike due to the high inclination of bicycles among the individuals, by spotlighting the demographic and psychographic factors. It is done to examine the efficiency and effectiveness of the brand of Powerbike. Furthermore, this paper also includes a suitable positioning strategy for Powerbike to analyze its position in the market among other similar competing transporting vehicle providers. It also comprises the underlying prospects and effectiveness of a cycle enterprise such as Powerbike, if it is transferred into the business market of Bangkok. Description of the Current Consumer Market of Powerbike Focusing On Demographics and Psychographics Factors In this era of globalization and industrialization, the consumer market of Thailand is one of the most intriguing components of mystery, which is illustrated by diverse types of languages, beliefs along with economic and social status. With due regard to this fact, the consumer market of Thailand has always positioned itself as a tricky proposition to evaluate for individuals. Therefore, the prospects of Powerbike within the market of Thailand can be evaluated by determining the demographic and psychographic factors of the population (State.Gov, 2012). Population The consumer market of Thailand is mainly dominated by the younger generation customers, who are highly sophisticated and considerate about the benefits derived from using cycles of varied brands. The total population of Thailand according to 2010 census is 67.4 million, with approximately 70 percent of the individuals falling under the age group of 15 to 64 years. Consequently, 8.5 percent of the total population of Thailand falls under age group of above 65 years. Moreover, approximately, male population is around 33.1 million and 34.3 million falls under female category (Bank of Thailand, 2008). This aspect is depicted in the figure below: Percentage Wise Population Differentiation of Thailand in the year 2010 Thus, it can be said that as the young generation of Thailand comprises maximum percent of citizens, which is quite beneficial for the brand of Powerbike. Gross Domestic Product (GDP) Growth Rate The Gross Domestic Product (GDP) growth rate mainly provides information about the amplification in the total value of the products and/or services formed within the economy. The GDP of Thailand expanded by about 11 percent in the first quarter of 2012, which is quite noteworthy. This shows that the economy is at a stage of development, which is largely dependent upon exports. As a result, about two-third of the total GDP of the economy of Thailand is attained from the exports operations. Thus, due to the well-organized infrastructure, financial system and free-trade agreements in Thailand, the economy is recognized as one of the finest performers in East Asia. Therefore, it can be determined that due to rise in GDP growth rate, the economic condition of the country is also quite stable, which highly influences the buying behavior of the consumers (Trading Economics, 2012). It can be highly valuable for the growth of the brand i.e. Powerbike within the economy of Thailand. GDP Growth Rate of Thailand Source: (Trading Economics, 2012) GDP of Thailand The Gross Domestic Product (GDP) of Thailand was about 318.85 billion USD in the year 2010 as portrayed in the figure below. The GDP value of Thailand is approximately equivalent to 0.51 percent of the total world economy. With due regard to the GDP rate, it can be affirmed that the employment rate as well as the purchasing behavior of the citizens of Thailand are also quite high (Trading Economics, 2012). Therefore, it can prove extremely beneficial for the brand of Powerbike in future times, resulting in augmentation of its total sales and revenue. It might also result in reduction of business risks by augmenting the underlying strengths of the brand. GDP of Thailand Source: (Trading Economics, 2012) GDP Per Capita of Thailand Gross Domestic Product (GDP) Per Capita is regarded as the purchasing power capability of the citizens of the economy of Thailand. The per capita income of the economy of Thailand is shown in the below illustration, which describes that the citizens possess the power of purchasing technologically advanced Powerbike’s offerings (Trading Economics, 2012). Therefore, it can be avowed that the prospects of Powerbike are rather quite high within the economy of Thailand due to high rate of consumption of the citizens within the society of Thailand. GDP Per Capita of Thailand Source: (Indexmundi, n.d.) Literacy Rate The literacy rate of the populations of Thailand is quite high due to emergence of varied types of industries within the economy. It has gained momentum mainly due to the free-trading laws and the fiscal systems of the government of Thailand. In addition, the multi-ethnic culture and the prevailing belief among people in long-term future oriented dimension are also extremely influential for citizens to enhance the rate of education (Hofstede, n.d.). As a result, the rate of literacy has observed to increase to 94.9 percent among males and 90.5 percent within females in 2012 (State.Gov, 2012), which has reduced the unemployment rate by a considerable amount as depicted in the below illustration. Unemployment Rate of Thailand Source: (Trading Economics, 2012) Therefore, the living standard of the citizens also augmented resulting in enhancement of the buying nature as well. Though the advanced Powerbike’s products with modern technology include moderately high prices but still the economy of Thailand is quite feasible for the growth of the Powerbike brand. Psychographic Features of Thailand The citizens of Thailand exhibit high interest on the purchase of bicycles as it helps in reduction of various types of health disorders such as obesity and arthritis. Moreover, the bicycles are also preferred as it travels without fuel, which enhances the cost saving prospect of the citizens of Thailand. Consequently, the citizens of Thailand offer more attention on the dimension of uncertainty avoidance and they always attempt to reduce risk oriented situations. In recent times, a continual trend of rise in oil prices has been observed which may lead to a constrained situation, resulting in augmentation in the cost of living. Therefore, in order to control such conditions, the citizens have attempted to offer more focus upon the purchase of cycles as a mode of travelling (Hofstede, n.d.). In addition, the rate of collectivism is also quite high among the citizens of Thailand, which acts as a significant factor for the growth of Powerbike. This means that purchase of a single individual in the society may influence the other citizens as well, resulting in augmentation of the profitability of Powerbike (Hofstede, n.d.). Furthermore, another considerable reason for the preference of Powerbike is that it helps in reduction of pollution rates (Yusoff & et. al., 2005). Thus, it can be affirmed from the above mentioned facts that the prospects of Powerbike are considerably high in the economy of Thailand. Appropriate Positioning Strategy for Powerbike and an Example of the Body Copy for a Piece of Advertising Positioning is one of the most vital processes of the marketing strategy. It is because, it is with the help of this strategy, the uniqueness and the advantages of a specific products or a brand can be highlighted among the customers of a country or an economy (Bicyclethailand, n.d.). In addition, positioning also facilitates a brand or an organization to evaluate its opportunities and market share within a particular economy (Hooley & Graham, 2008). Moreover, the most considerable competitors of the product or the brand can also be identified, resulting in gaining a scope of devising appropriate planning and scheduling strategies to cope up with varying challenges present in the environment (Scribd, n.d.). Thus, it can be affirmed that positioning facilitates a brand or an organization to augment its corporate image and value proposition, in order to augment its competitiveness in the future times. It might also help to enhance the rate of sustainability of the brand or the organization among other competitors in the market (Scribd, n.d.). Product Positioning Strategy The brand of Powerbike can be positioned with the strategy of competitor positioning. In this type of positioning strategy, the particular product or the brand is claimed to be superior to its competitor such as ‘Powerbikes is better to GT Cycles of Thailand’. This is because it is not just a bike to compete but a vehicle in which an individual can depend upon to reach safely to the desired destination as it includes various types of modern technologies such as toe-clips and tire levers among others (Scribd, n.d.). This might facilitate Powerbike to augment its dominance and assortment as compared to other companies in this segment. This can be done by offering value added products at an efficient price to attract large array of customers (Sengupta, 2005). Pricing Strategy Pricing is also the other considerable factor while positioning a new product or a brand into a fresh market. With due regard to this fact, the brand Powerbike can be positioned with penetration pricing strategy (Sengupta, 2005). In this type of strategy, the brand of Powerbike can be placed at reasonable prices so that it can be easily afforded by the citizens of all income groups. It would be done to enhance the brand image and fidelity of Powerbike within the economy of Thailand, resulting in augmentation of its productivity and profitability in the long run (Scribd, n.d.). In addition, if the Powerbike’s offerings are positioned within the market of Thailand with penetration pricing then it might also augment the identity and the uniqueness of the brand among other apparent competitors operating in this sector. Moreover, it might also help Powerbike to attract new customers in this competitive market of Thailand. Therefore, to retain the market value and distinctiveness of Powerbikes, it is extremely essential to present it with the help of above mentioned strategies. An Example of the Body Copy for a Piece of Advertising To promote the brand of PowerBike, the organization might utilize print media, online sites as well as audiovisual sources to attract the attention of the customers in the market of Thailand. All the three types of media are essential as it might facilitate in enhancing the awareness of the target consumers i.e. mainly the young generation. This might help in augmentation of the total sales and the revenue of the brand in the market of Thailand among others (Scribd, n.d.). Print Media User Friendly Bikes at Reasonable Costs – Powerbike Features: Neon Frame, Wheel proof graphics, soft synthetic resin grip and cable controlled pull calipers. Tyres: 26 x 1-3/8, various colors (Scribd, n.d.) ‘Enjoy a Joyful Ride with Powerbike’ (Scribd, n.d.) Online Sites Powerbike – An Excellent City Bike with Aluminium Body Terrain and Mountain Bikes with Low Weight and Price (Scribd, n.d.) Television Advertisement ‘Excellent Journey for All’ Beneficial and Affordable…….Powerbike “Available in various colors with advanced equipments at a nearby shop with attractive discounts”. “HURRY TO GRAB IT” (Scribd, n.d.) Thus, by presenting these types of advertisements, as shown above, Powerbike can attract attention of the customers in the market of Thailand, resulting in proper positioning of its products. This is due to the fact that the advertisements can facilitate in enhancing the strengths by reducing the limitations of the brand in the market of Thailand, which is extremely essential to retain its market portfolio in the long run (Scribd, n.d.). Therefore, these advertisements might prove highly beneficial for Powerbike to enhance the level of sustainability and competitive advantage among other competing organizations in the market. Likelihood of the Enterprise of Powerbike Moving To Service the Business Market in Bangkok In this era of globalization, the industry of bicycles has enhanced by amazing leaps and bounds in the market of Thailand. This is because bicycle is recognized as one of the main vehicles for the purpose of racing or travelling. Consequently, it has helped the industries operating in coordination with the bicycle industry, to augment at a rapid pace, resulting in amplification of their recognition and profit margin. It has also facilitated the industry dealing in cycle segment to enhance its portfolio and inimitability among other companies in the market of Bangkok. Therefore, the prospects of the brand of Powerbike in market of Bangkok can be examined with the help of Porter’s five forces model (Slideshare, n.d.). Bargaining Power of the Buyers The citizens of Bangkok demonstrate a substantial inclination towards the purchase of bicycles as it is regarded as one of the most affordable and suitable vehicles to ride upon. This is because it does not require oil consumption as well as offers no harmful influence upon the pollution level of the economy. Due to this reason, the growth and popularity of the cycle industry is comparatively high in the market of Bangkok (Sengupta, 2005). In addition, Bangkok market also includes a large number of substitutes, which has enhanced the bargaining power of the buyers or the customers by a significant extent. Thus, it can be avowed that if the brand of Powerbike gets commences its operations then it entails high growth prospects in the Bangkok economy in the long run. It might facilitate the brand to augment its fidelity and status among other rivals in the sector (Slideshare, n.d.). Bargaining Power of the Suppliers Bargaining power of the suppliers in the Bangkok is quite low due to existence of low number of competing enterprises, with various inventive services at reasonable prices. Due to this fact, the enterprises always attempt to offer innovative types of services to their customers to satisfy their changing needs and desires, resulting in reduction of switching costs (Slideshare, n.d.). Thus, it can be revealed that the industry, in which Powerbike operates, includes high opportunities in Bangkok market but it might endeavor to offer inventive services to its consumers. Moreover, it also needs to tie-up with suitable and quality suppliers in Bangkok in order to ensure that superior products are provided to the consumers. Threat of Substitutes The threat of substitute products of cycle industry is also quite high. This is because of the high passion of two-wheelers among the young generation of the society of Bangkok. It might result in a decline in the market of bicycles, causing downfall of the profit margin and demand of the various types of products offered by Powerbike. Thus, to cope up with this challenging factor, the cycle industry always endeavors to offer variety of services at an efficient cost to retain its competitive image. Moreover, it might also facilitate the industry to preserve the older customers and to attract the new consumers, which is highly valuable to sustain in this aggressive market (Bangkok Post, 2012). Similarly, Powerbike might also attempt to satisfy the requirements of the customers at an efficient and effective way to retain its market share. It might also facilitate the brand of Powerbike to augment its supremacy over other rivals, leading to amplification of its brand equity. Threat of New Entrants The threat of new entrants or players in the segment of cycles is quite high as it includes low capital requirement. Moreover, the switching cost of the customers is also quite high in this sector, which acts as a significant reason for the entrance of new players. The economies of scale are also quite high, which attracts large number of new entrants within the segment of cycle industry in Bangkok. Thus, it can be said that the opportunity of cycle industry is notably higher in Bangkok but the management of Powerbike needs to attempt to offer high concentration upon the research and development aspect to provide consumers with latest upgraded products. It is essential to retain the customers and to attract new ones to enhance the revenue of the organization (Bangkok Post, 2012). Intensity of Rivalry Due to low number of competitors in the cycle industry, in the market of Bangkok, the intensity of competition is quite low (Bangkok Post, 2012). Moreover, the degree of presentation of different types of services to its customers is also quite lower; resulting in reduction of the degree of rivalry. In addition, due to high switching costs of the buyers, the extent of competition among the existing firms reduces by a considerable extent, ensuing lower level of productivity. It might also lead to reduction of brand image and efficiency of the organizations, thereby hindering its sustainability in the long run. Thus, it can be ascertained that the industry of cycle in Bangkok is quite profitable for Powerbike but it is required to offer modern services at a reasonable cost to its customers to maintain competitiveness (Slideshare, n.d.). Conclusion In this era of competitiveness, the demands of the customers are changing at a rapid rate. Therefore, it is extremely essential to offer higher focus upon the introduction of varied types of inventive products and/or services to retain and to satisfy consumer desires. It is relevant for the industry operating in each and every sector to sustain its competitive advantage over others. Substantially, the industry of bicycles in Thailand holds significant prospects of future growth but due to frequent changes in consumer requirements and preferences, the administration of the enterprises such as Powerbike needs to concentrate upon the aspect of invention of new services. This might facilitate the enterprise desiring to operate in the cycle industry of Thailand to retain its portfolio and market demand among other operational enterprises in the market of Bangkok. References Bangkok Post, 2012. Bangkok Cycle Industry. Information. [Online] Available at: http://www.bangkokpost.com/business/company-in-thailand/listing/bangkok-cycle-industrial-co-ltd/7911/ [Accessed June 05, 2012]. Bank of Thailand, 2008. Thailand at a Glance. Population. [Online] Available at: http://www.bot.or.th/English/EconomicConditions/Thai/genecon/Pages/Thailand_Glance.aspx [Accessed June 05, 2012]. Bicyclethailand, No Date. Thailand's Largest English Language Bicycle Resource. News. 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