Page 174 - Foundations of Marketing

Target Markets: Segmentation and Evaluation | Chapter 5 141

and tradition of getting around on bicycles, and its long his- who have been on bicycles with steel frames praise the qual-
tory in the business, Raleigh is looking to reinvigorate sales ity of the ride, saying that steel “has a soul,” according to
and capture a larger share of the $ 6 billion U.S. bicycle market research.
market. To stay in touch with its target market, Raleigh is increas-
Raleigh’s U.S. marketers have been observing the “mes- ingly active in social media. Ten thousand fans visit its
senger market,” customers who ride bicycles through down- Facebook page to see the latest product concepts and post
town streets to deliver documents and small packages to their own photos and comments about Raleigh bicycles. It
businesses and individuals. They have also noted that many also uses Twitter to keep customers informed and answer
everyday bicycle riders dress casually, in T-shirts and jeans, questions about its bicycles and upcoming demonstration
rather than in special racing outfits designed for speed. events. The company’s main blog communicates the latest
Targeting consumers who enjoy riding bicycles as a lifestyle, news about everything from frame design and new bike colors
Raleigh’s marketers are focusing on this segment’s specific under consideration to product awards and racing activities.
needs and preferences as they develop, price, promote, and It has a separate blog about both the fun and the challenges
distribute new models. of commuting on bicycle, a topic in which its customers are
In recent years, Raleigh’s marketers have stepped up the intensely interested because so many do exactly that. By lis-
practice of bringing demonstration fleets to public places tening to customers and showing that it understands the daily
where potential buyers can hop on one of the company’s life of its target market, Raleigh is wheeling toward higher
17
bicycles and pedal for a few minutes. The idea is to allow sales in a highly competitive marketplace.
consumers who enjoy bicycling to actually experience the
fun feeling of riding a Raleigh. The marketers are also fan-
ning out to visit bicycle races and meet bicyclists in cities Questions for Discussion
and towns across America, encouraging discussions about 1. Of the four categories of variables, which is most impor-
Raleigh and about bicycling in general and seeking feedback tant to Raleigh’s segmentation strategy, and why?
about particular Raleigh products. 2. How would you describe Raleigh’s positioning for its
Listening to consumers, Raleigh’s marketers recognized steel-frame bicycles?
that many had misperceptions about the weight of steel- 3. Raleigh sells exclusively through retail dealers, not
frame bicycles. Although steel can be quite heavy, Raleigh’s directly to consumers. How does this affect its ability to
bicycles are solid yet light, nimble, and easy to steer. Those segment the bicycle market using geographic variables?

NOTES

1 Based on information in Matthew Boyle, “In 4 American Community Survey, U.S. Census August 19, 2012, www.nytimes.com/2012/08/19/
Emerging Markets, Unilever Finds a Passport Bureau, 2011, www.census.gov/compendia/statab/ business/electronic-scores-rank-consumers-
to Profit,” Bloomberg Businessweek , January 3, cats/population.html (accessed January 19, 2013). by-potential-value.html (accessed January 19,
2013, www.businessweek.com ; Matthew Boyle, 5 Elizabeth Sweet, “Guys and Dolls No More?” 2013).
“Unilever Wants to Be America’s Ice Cream
New York Times , December 21, 2012, www 10 “ Households and Families: 2010, ” U.S. Census
King,” Bloomberg Businessweek , August 23, 2012,
.nytimes.com/2012/12/23/opinion/sunday/gender- Briefs, www.census.gov/prod/cen2010/briefs/
www.businessweek.com ; “Unilever Maintains
based-toy-marketing-returns.html . c2010br-14.pdf (accessed January 19, 2013).
Pole Position,” Grocer , September 22, 2012, S57;
6 American Community Survey, U.S. Census 11 “My Best Segments,” Claritas, www.claritas
“Keep Your Cool,” Convenience Store , October
12, 2012, 52; “Media Headliner: Di Como Seeks Bureau, 2011, www.census.gov/compendia/statab/ .com/MyBestSegments/Default.jsp?ID=0&menuOp
to Discover Unilever’s Sweet Spot,” Campaign , cats/population.html (accessed January 19, 2013). tion=home&pageName=Home (accessed
January 20, 2013).
November 30, 2012, 21. 7 “Marketing to Women—Quick Facts,” She-
Conomy, http://she-conomy.com/report/marketing- 12 Joseph T. Plummer, “The Concept and
2 Katie Smith, “Lululemon Targets Men’s Wear
to-women-quick-facts/ (accessed January 19, Application of Life Style Segmentation,” Journal
for Future Growth,” just-style, January 18, 2013,
2013). of Marketing (January 1974): 33.
www.just-style.com/analysis/lululemon-targets-
mens-wear-for-future-growth_id116702.aspx . 8 “FAQ,” Iman Cosmetics, www.imancosmetics 13 SRI Consulting Business Intelligence, “About
.com/faq (accessed January 19, 2013). VALS™,” www.strategicbusinessinsights.com/
3 Unsweetened Vanilla Almondmilk, Silk, http://
vals/international.shtml (accessed February 3,
silk.com/products/unsweetened-vanilla-almond- 9 Natasha Singer, “Secret E-Scores Chart
2013).
milk , accessed January 28, 2013. Consumers’ Buying Power,” New York Times ,
Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.