video and question activity

Founded in 1887 in Nottingham, England, Raleigh Wheels became known as the original all-steel bicycle manufacturer. Eventually, ownership of a Raleigh bike became a status symbol. Raleigh’s product development has been significantly influenced by trends in the European market where biking had long been a lifestyle choice. Then, in the past 10 to 15 years, technological advances have fueled bikers’ desires for equipment that is lighter, faster, and better. All companies in the industry, including Raleigh, began incorporating these technological advances into their products. Sensing that it was getting lost as a company, Raleigh returned to what customers really expected. It returned to its roots as a steel bike producer for customers who are committed to bikes and biking as a lifestyle choice. Part of this impetus for returning to the all-steel bike came from the desire for messenger-style bikes by customers of Raleigh America. Customers who pursue biking as a lifestyle choice want durable equipment and a quality ride, both of which are provided by the all-steel bike. To ensure that Raleigh continues to satisfy its customers’ wants and needs, Raleigh America’s marketing manager constantly uses various venues to gather input from bike enthusiasts.

VIDEO DISCUSSION QUESTIONS you can login in my school thing to watch the video

How can market segmentation be useful for producers of bicycles?

On what factors does Raleigh Wheels base its market segmentation?

How can Raleigh Wheels benefit from the market segment that it pursues?

1. Activities:

Activity I: Choose a product that you would like to introduce in the market. Create a profile of your target market and to discuss the reasons for choosing this market.

This activity/assignment will help students understand concept of positioning and its importance

Activity II: Find a company that is struggling. Where is it in the positioning matrix? Could the company be more successful if it changed any of its Ps (e.g., to head to the lo-lo-lo-lo or hi-hi-hi-hi cells)? Kohl’s, Game Stop, or JC Penney should not be used.