“Double O” is a set of LED bicycle lights in the shape of an “O” – as shown. The
ID: 329064 • Letter: #
Question
“Double O” is a set of LED bicycle lights in the shape of an “O” – as shown. The lights attach to the clip magnetically, so they can be easily taken on and off the bike. The two lights (the front and rear) will also magnetically attach to one another for easy carrying. Finally, because of their shape, they can be attached to a lock when locking up the bike.
For this question we want you to describe the target market for this product. Start with a description of their underlying needs – what needs does this product satisfy better than the available alternatives? In other words, what is this product doing better (or worse) than the other options out there? Then we want you to do two further things: A) think a bit about how big this target market is likely to be. How many people are there likely to be in this market? Don’t worry about coming up with precise figures, but do try to intuit what percentage of the total market is likely to be particularly attracted to this product and why. B) We want you to try to characterize the target market. Don’t fall into the trap of stereotyping individuals, but do your best to think about the specific kinds of people who are most likely to be part of the target market (i.e. have the needs that you identified previously).
Explanation / Answer
Market Segmentation
The university students are our main target market.
University employees are another prime market segment.
Greater Metroburg population
This segment has a choice of going to any bike shop in Metroburg, and will probably choose a shop located closer to their home. They are not the main target market segment of University Cycle Works, and we market to them casually, only as a collateral effect to our university-oriented efforts.
We've chosen our target market segments, the greater university population because:
This product will do better than other similar products because of following reasons:
Market research analysts at Technavio predict that the global bicycle lights market will grow steadily during the next four years and post a CAGR of close to 9% by 2021. This market research analysis identifies the gaining interest in cycling as one of the primary growth factors for this market. Due to the growing awareness about the personal health benefits and environmental benefits, there is an increasing preference towards cycling among the people across the world. Additionally, cycling is also gaining popularity because of the quality of material used in bicycles and the superior components. Furthermore, the rise in urbanization and the increase in traffic jams are also factors inducing the preference of people towards cycling. This preference of people towards cycling will subsequently contribute to the demand for bicycle lights, fueling market growth.
To help drivers quickly adjust their behavior, psychologists are developing lights that include symbols. These lights will enable the driver to see through the windscreen and not only detect the light but also see a cyclist moving as these shapes also help obtain information extremely quickly. This intervention of psychologists in designing bicycle lights will be one of the major trends that will gain traction in the bicycle lights market during the next few years.
Competitive landscape and key vendors
Due to the presence of several vendors, this market appears to be highly fragmented. The growth of vendors in this market depends on factors such as market conditions, government support, and industry development. Vendors in the bicycle lights market are using innovative approaches in marketing and customer service to penetrate the market. Furthermore, the vendors are also focusing on practicing efficient techniques in production to minimize the product costs and reduce risks, which will in turn, help them improve their profit margins.
The leading vendors in the market are -
The other prominent vendors in the market include Topeak, BBB Cycling, Blitzu, Bright Eyes Products, Reelight, Giant, LIGHT & MOTION, Knog, Trek Bicycle, and Serfas.
Segmentation by end-user and analysis of the bicycle lights market
During 2016, the aftermarket segment accounted for the major shares and dominated this market. Factors such as the ease of availability of products and the popularity of do-it-yourself (DIY), will contribute to the growth of this industry segment in the coming years. Additionally, the stringent rules and regulations in several countries such as the UK, Germany, and the Netherlands, that drive the demand for aftermarket products to be fitted in bicycles, will also augment the growth of the bicycle lights market in this segment.
Geographical segmentation and analysis of the bicycle lights market
This market study estimates that in terms of geographic regions, EMEA will be the major revenue contributor to the market by 2021. This is mainly due to the imposition of strict rules that mandate the need to use bicycle lights after sunset and before sunrise. Additionally, the focus of the World Health Organization (WHO) and the governments of several countries towards increasing the participation in physical activities to promote the benefits of exercise and sports that have resulted in the demand for bicycles, will also positively influence the growth of the bicycle lights market in EMEA.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.