The market for motorcycles can be divided into segments, each with its own needs and wants.
The key to successful marketing is understanding these different segments and targeting them with the right products.
One of the most popular methods for performing market segmentation uses demographic factors like age, gender and income.
Other methods use psychographic factors like lifestyle, motivations, values, likes and dislikes as well as behavioral factors like purchasing habits, how someone intends to use a product or service, how often they will use it, the benefits they seek, or brand preference that they have.
In this article, we will perform motorcycle market segmentation using the following 7 variables: type of motorcycle, price range, style and comfort, country of origin, services available, rider experience level and terrain.
But first, let’s start by understanding why motorcycle market segmentation is important.
The Importance of Segmentation of the Motorcycle Market
The segmentation of the motorcycle market is essential because it allows motorcycle manufacturers and dealers to:
- Understand the needs and wants of their target market
- Develop products and services that meet the needs of this market
- Design marketing campaigns that appeal to different segments of their target market
- Focus their resources on the most promising segments of the motorcycle market
By understanding the needs and wants of different segments, motorcycle companies can create products that are more likely to appeal to them and motorcycle shops can stock motorbikes that their customers are most likely to buy. This is referred to called needs-based segmentation.
Variables for Motorcycle Market Segmentation
Motorcycle market segmentation can be performed along the following 7 axes:
- Type of motorcycle
- Price range
- Style and comfort
- Country of origin
- Services available
- Rider experience level and
- Terrain
Different people have different needs, wants and motivations for purchasing a product or service.
And so most motorcycle manufacturers do not cater to all buyers. Instead, they focus on those segments of the market that are most likely to buy their products.
With market segmentation, they can target specific groups of consumers with tailor-made products or services that satisfy their needs.
It is therefore essential that motorcycle manufacturers decide which segments they want to target and then design their products, marketing, and sales strategy accordingly.
Let’s now look in detail at each of the 7 variables used in motorcycle market segmentation.
#1. Segmentation Based on Motorcycle Type
Motorcycles come in many different types and the type of motorcycle is one of the most important factors that customers take into account while making a buying decision.
The most common types of motorcycles are :
- Sport bikes: Designed for speed and agility, sport bikes are the motorcycle of choice for racing or going on long rides.
- Cruiser bikes: These motorcycles are designed for comfort and style, making them ideal for leisurely rides.
- Touring bikes: Built for long-distance travel, touring bikes come with features like storage compartments and comfortable seats.
- Dual-purpose bikes: These are motorcycles that can be used both on and off the road.
- Dirt bikes: As the name suggests, dirt bikes are designed for riding on rough terrain.
Motorcycle manufacturers who focus on a specific type of motorcycle often have a competitive advantage because they can design their products specifically for their target market segment.
This is why businesses need to decide which types of motorcycles they want to sell before designing them and defining marketing and sales strategy.
#2. Segmentation Based on Motorcycle Price Range
Price is, of course, a major factor that influences consumer behavior.
Motorcycle buyers can be segmented based on the price range they are willing to pay for a motorcycle.
There are three main price ranges for motorcycles:
- Low-priced motorcycle: These motorcycles typically cost less than $5000 and are usually entry-level bikes or those that are designed for budget-conscious buyers.
- Mid-priced motorcycle: Mid-priced motorcycles usually fall in the $5000 to $15,000 range. These bikes offer more features and better performance than a low-priced motorcycle but are still relatively affordable.
- High-priced motorcycle: High-priced motorcycles typically cost more than $15,000. These bikes are designed for experienced riders who are looking for the best performance and features.
Motorcycle manufacturers need to decide which price range they want to target before designing and marketing their products.
They also need to keep in mind that the price range of a motorcycle can vary depending on the country or region where it is being sold.
Manufacturers and retailers often use price segmentation techniques to maximize their revenue and profit by extracting the most revenue out of each customer based on their willingness to pay.
#3. Segmentation Based on Style and Comfort
Motorcycles come in different styles.
For example, some motorcycles are designed to be stylish and sleek, while others are meant to be rugged and tough.
Comfort is another important factor that motorcycle buyers take into account while making a purchase decision. This decision is usually based on how the motorcycle will be used.
For instance, if a motorcycle is going to be used for long-distance travel, comfort becomes a more important factor than it would be for a motorcycle that is only going to be used for short trips.
So when segmenting the market based on style and comfort, motorcycle manufacturers need to decide which type of motorcycle they want to sell and what their target market is looking for in a motorcycle.
#4. Motorcycle Market Segmentation Based on Country of Origin
Many people are loyal to motorcycle brands that are made in certain countries.
For instance, many motorcycle buyers prefer Japanese brands like Honda and Yamaha because of the perception that these brands offer better quality and reliability.
Similarly, some motorcycle buyers prefer American-made brands like Harley-Davidson because of the perception that these motorcycles are more rugged and tough.
Motorcycle market segmentation based on country of origin can be a powerful way to combine with brand loyalty to create a competitive advantage.
#5. Segmentation Based on Services Available
Motorcycles are machines and, like all machines, they require regular maintenance and servicing.
The availability of service is an important factor that motorcycle buyers take into account while making a purchase decision.
For instance, if a motorcycle brand has a wide network of authorized service centers, it will be more attractive to buyers than a brand that doesn’t have as many service centers.
Other services that motorcycle owners look at are roadside assistance, extended warranty, and insurance.
#6. Segmentation Based on Rider Experience Level
Rider Experience Level is an important factor in motorcycle market segmentation.
This is because the level of rider experience often impacts the type of motorcycle a buyer buys.
For instance, a beginner rider is likely to be looking for a motorcycle that is easy to ride and has fewer features, while an experienced rider is likely to be looking for a motorcycle that has more power and features.
#7. Motorcycle Market Segmentation Based on Terrain
The terrain on which a motorcycle will be mostly used is another factor in motorcycle market segmentation.
This is because the type of terrain a motorcycle will be used on often impacts the type of motorcycle a buyer buys.
For instance, a motorcycle that is going to be ridden on paved roads is going to be different from a motorcycle that is going to be ridden off-road.
The former is likely to be smaller and lighter, while the latter is likely to be larger and heavier.
So there you have it, seven important variables that motorcycle manufacturers need to take into account while segmenting the motorcycle market.
By segmenting the market based on these factors, motorcycle manufacturers can better target their products at buyers who are most likely to purchase them.
Conclusion
As you can see, the market for motorcycles can be segmented using many variables and can be analyzed from different angles.
In this article, we performed motorcycle market segmentation following these 7 factors: type of motorcycle, price range, style and comfort, country of origin, services available, rider experience level and terrain.
Motorcycle manufacturers and retailers often use market segmentation to better understand their customers and figure out how to appeal to them.
With motorcycle market segmentation, they can better understand which of their products are likely to sell well and can target their audiences more effectively.