Marketing Analysis
Product Outline
The product we are planning to release to the market is an alternative option to modern day Lycra for those looking to enter the world of cycling. For too long cyclists have been getting around suburban coffee shops in nothing but tight fitting, figure hugging active wear however, Lycra has positive safety features such as clothing not interfering with the chain of the bike, no air resistance to slow cyclists down and reduces sweat and chafing (Merz, 2014). This has left those who wish to enter the clique with little option other than to conform. No longer must they worry however. Our product aims to give those who are more conscious about their body a looser-fitting garment to wear on the bike, with all the practicalities of Lycra.
2 Target Market
The group of people we are aiming our products at are the people who are cycling as a form of exercise or commuting to work. As earlier mentioned, these people want the safety features of Lycra without the tight fitting clothes. Therefore, we wish to target two segments including bicycle commuters and middle aged people wanting low intensity exercise. The 2011 census revealed that 24,000 people commuted to work in Brisbane by bicycle and these are the people we will be targeting at (Australian Bureau of Statistics, 2011). The segmentation strategy we will use is both psychographic as we will assess the values and motivations of people who wish to cycle and demographics as we will divide by age and sex.
3 Current Marketing Environment
I have included a detailed SWOT analysis, as well as a micro environmental and macro environmental analysis in the appendices. A brief summary of those analyses is that the cycling wear and active wear markets in general are highly competitive, there are many market participants offering a wide variety of products to loyal customers. This does not mean market entry is unfeasible though. As the market’s external environment is constantly changing, there is an opportunity for a business such as ours to establish a niche competitive advantage in a segment of the market that is not currently being serviced by established market participants.
4 Adding Value and Competitive Advantage
The competitive position that our active wear company will take is that of the market niche. We want to get to know the target customer on a more personal level than our competitors to deliver products that meet the specific needs of our clientele better than any competitor. We are aiming to be specific customer specialist. Our competitive advantage will be a niche advantage. Through knowing the needs of our customer better than anyone, we will be able to deliver value to customers and build a niche competitive advantage.
5 Action Plan
We have developed a detailed action