There are many different types of bicycles on the market, and each one is designed for a specific type of rider or purpose.
Likewise, there are many different bicycle market segments, and each one is unique with customers having their own needs and wants.
To be successful in the bicycle industry, it is important to understand the different types of bicycle markets and how to segment them.
This article will discuss bicycle market segmentation using 7 different variables: type of bicycle, price range, type of cyclist, gender, age group, riding environment, and brand preference.
Let’s dive in!
The Importance of Segmentation of the Bicycle Market
The segmentation of the market for bicycles is essential because it allows bicycle businesses to target a specific group of customers that are more likely to purchase their product.
By targeting a specific group, businesses can create marketing campaigns specifically designed for that group which is more likely to result in success.
Segmentation also allows businesses to better understand the needs and wants of their target market which they can then use to improve their products and services.
For example, if a bicycle company is targeting young adults, they can design their products and marketing to appeal to that demographic.
This could include using more modern designs and colors as well as using social media platforms like Snapchat and Instagram to reach their target market.
On the other hand, if a bicycle company is targeting seniors, they might use more traditional designs and colors as well as advertise in magazines that are popular with that demographic.
They would also likely use more print media rather than social media to reach their target market.
By understanding the needs and wants of their target market, bicycle businesses can improve their chances of success.
Now that we’ve discussed the importance of bicycle market segmentation, let’s take a look at some of the variables with which we can perform this segmentation.
Variables for Bicycle Market Segmentation
Bicycle Market Segmentation can be performed along the following 7 axes:
- Type of bicycle
- Price range
- Type of cyclist
- Gender
- Age group
- Riding environment and
- Brand preference
Most bicycle manufacturers do not cater to all these segments and hence bicycle market segmentation is vital for them to focus on the right target group.
Segmentation also affects how they design, brand, and price their products.
For example, a bicycle company that is targeting the high-end market would not want to use the same branding or pricing as a bicycle company that is targeting the budget market.
Segmentation also helps in product design. For instance, a bike company making mountain bikes would design a different product than one making beach cruiser bikes.
Mountain bikes need to be designed to be durable and resistant to damage, while beach cruiser bikes need to be designed for comfort and style.
In short, different bicycle companies will have different products, branding, pricing, and marketing based on the segment they are targeting.
Let’s now look in detail at each of the variables used in bicycle market segmentation.
#1. Segmentation Based on Type of Bicycle
Bicycles come in many types like road bikes, mountain bikes, hybrid bikes, BMX bikes, and so on.
The type of bicycle a customer chooses depends on many factors like where they will be riding the bicycle (on-road or off-road), what they will be using it for (racing, leisurely rides, commuting, etc.), and their budget.
Bike companies build different types of bicycles to cater to different segments of the market.
For example, Trek is a bicycle company that makes road, mountain, and hybrid bikes.
The type of bike can also vary based on the power source. Most bikes are on “human power” but there is a growing market for electric bikes targetting commuters who are willing to replace their daily car commute with a short electric bike ride.
A growing trend happens to be folding bikes. These are becoming increasingly popular as convenient to ride and to store especially when storage space is at a premium.
Segmentation Based on Bicycle Price Range
Price as always has an impact on the customer’s decision to buy and so it is always a segmentation variable of importance.
Bicycles can be divided into three categories based on price: budget, mid-range, and high-end.
The needs of the customer differ based on the price range they are looking at.
For example, a customer looking for a budget bicycle is mostly concerned with getting a bicycle that is affordable and lasts long.
On the other hand, a customer looking for a high-end bicycle is mostly concerned with getting a bicycle that is lightweight and has the latest features.
For instance, the company we mentioned earlier – TREK – has entry-level road bikes that start at $600 while their top-of-the-line mountain bikes can cost up to $8000.
Hence, bicycle companies need to segment their products based on price range in order to cater to the needs of different customers.
Segmentation Based on Type of Cyclist
Some cyclists are casual riders who ride for leisure or to commute short distances.
These cyclists are mostly concerned with getting a bicycle that is comfortable and easy to ride.
On the other hand, some cyclists are hardcore riders who ride for exercise or competition.
These cyclists are mostly concerned with getting a bicycle that is lightweight and performance-oriented.
Mountain bikers also fall into this category as they need a bicycle that can handle the rigors of off-road riding.
Another important type of cyclist with their own special needs is children. Children ‘s bicycles need to be durable and safe. Also, these bikes need to cater to different ages of children.
Segmentation Based on Age Group of Cyclists
People in different age groups tend to have different bicycle needs because they may use their bikes for different activities.
Teenagers and young adults, for example, may use their bikes for recreation or commuting to school or work. They are also more likely to do bike sports and mountain biking. Their interest in bikes is more as an instrument to have fun and stay fit with.
Middle-aged adults are more likely to use bikes for commuting, running errands, or short family outings. They want a bicycle that is comfortable, easy to ride, and low maintenance.
Older adults are also interested in comfort and low maintenance but may be less concerned about speed. Instead, they focus on getting an easy-to-ride bike so they can enjoy time with family or friends. Older adults may use also their bikes for exercise.
Children, as we saw earlier, have different sub-categories of their own. Younger children often need a starter bike on which they can learn to ride. As they get older, they will need a larger bicycle that can accommodate their size. And finally, as they become teenagers, they may want a bicycle that is more specialized for the activities they are interested in, such as BMX or mountain biking.
Segmentation Based on the Cyclist’s Gender
Although society is changing, bicycle manufacturers still segment their products by gender.
For many years, bicycle companies have marketed their products differently to men and women.
They used different colors, designs, and even advertising campaigns to target each gender.
Nowadays, however, there are more unisex bicycles on the market. These bicycles are designed to be comfortable for both men and women.
However, some bicycle companies still produce bicycles that are specifically designed for either men or women.
For example, the company Liv produces bicycles that are designed specifically for women.
Their bikes have a lower standover height to make it easier for women of all sizes to get on and off the bicycle.
They also have a shorter reach to the handlebars to make it more comfortable for women’s shorter arms.
Bicycle Market Segmentation Based on Riding Environment
The environment in which someone habitually goes riding has a big impact on the bicycle they will need.
Riders who live in hilly areas, for example, need a bicycle that can handle the inclines and declines. They also need a bicycle with good brakes to safely navigate the hills. They may choose a bicycle with gears to make it easier to pedal uphill. They may even opt for a bike with a motor to help out on really steep climbs.
Riders who live in areas with a lot of traffic need a bicycle that is easy to maneuver in and out of traffic. They also need a bicycle with good brakes so they can stop quickly if necessary.
Riders who live in rural areas may want a bicycle that is designed for off-road riding. This type of bicycle has thicker tires to navigate through mud and sand. They also have suspension to absorb the bumps from riding on rough terrain.
Bicycle Market Segmentation Based on Brand Preference
Many bicycle owners tend to display brand loyalty. This may be because they have had good experiences with that particular brand in the past. It isn’t uncommon to see bicycle owners who only ride bikes from one particular brand.
Some bicycle brands are known for their high-end, expensive products. These brands include Specialized, Trek, and Cannondale. These brands are often preferred by competitive cyclists and bicycle enthusiasts.
Other bicycle brands are known for their mid-range or budget-friendly products. These brands include Schwinn, Raleigh, and Giant. These brands are often preferred by casual cyclists and people who are new to riding.
Conclusion
As you can see the market for bicycles can be segmented using different variables and analyzed from different perspectives.
In this article, we reviewed bicycle market segmentation using different factors: type of bicycle, price range, type of cyclist, gender, age group, riding environment, and brand preference.
Bicycle manufacturers use market segmentation to decide what products to build, what features add, and how to market and distribute their bikes.
Similarly, bicycle shops use bicycle market segmentation to decide which types of bikes to carry and how to promote them to potential customers in their neighborhoods.