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Case Study 11 – The benefits of cycling: a marketing
opportunity for Powerbike in Thailand
The Powerbike story
The Powerbike story Powerbike is a one-stop bicycle retailer that was established in 2006 at
Roi Et ? a city located in the north-east part of Thailand that has a population of approximately 1.2 million. The business is under the ownership of two siblings ? Nui, and his sister, Ning ? both of whom were born and brought up in Roi Et. Powerbike is a familyowned and -operated business, and is one of the premier retail cycle and accessories shops in Roi Et. A map of Thailand is shown in figure 11.1 (Google Maps 2010).
Nui and Ning first developed their interest in cycling when they were children. Their parents
used to run a small bicycle shop in Roi Et, serving the local community for decades. This
gave the siblings the opportunity to learn how to ride, as well as to learn how to fix their own
bikes ? while they were still children. In addition, the siblings both have Marketing and
Accounting degrees, which were completed at universities in Australia and Thailand
respectively. Nui and Ning are confident that their hard work and innovate approach to
running a bicycle store will eventuate in success and the expansion of their business.
FIGURE 11.1 Map of Thailand
Products and services
Powerbike offers a range of road, mountain and specialty bikes for all types of riders, as well
as accessories and repairs. Ning claims, ?Whether you?re cycling competitively or just
starting out, we, at Powerbike, can definitely find you a bike to suit your riding pattern and
budget?. In brief, Powerbike has a range of bicycles to suit customers who love cycling and
who wish to use a bicycle for transport. They sell
? mountain bikes. Built to last and easy to use, mountain bikes can handle almost any
terrain.
? road bikes. Also known as racing bikes, road bikes are the fastest and lightest bike
category, and can be divided into performance road bikes and recreational road bikes.
? women?s specific bikes. Women?s specific bikes are usually fitted with ladies? saddles,
smaller frame sizes and alternative colours, and are designed to make women feel more
comfortable.
? children?s bikes. Children?s mountain bikes come in a range in sizes.
? hybrid bikes. Hybrid bikes take design features from road and mountain bikes, making
for a bike that is suitable for general recreational riding and commuting.
? bicycle motocross (BMX) bikes. This type of bike can be used for dirt jumps, street
riding, BMX racing and just mucking around.
Powerbike carries out all types of bicycle servicing and repairs. They are keen that quality
comes first with a reasonable price. In addition, repair works are done efficiently and
appropriately, covering all the essentials for customers? bicycles to function safely,
comfortably, reliably and economically.
As claimed by Ning, ?Customers can expect fast and friendly service when it comes to
bicycle maintenance with us at our Roi Et service center?. She further explains that customers
can deal with qualified mechanics at Powerbike?s well-equipped service centre. The siblings
have developed the business to provide service, repairs, parts and accessories for all types
and makes of bicycles.
A marketing opportunity
From time to time, Powerbike, like many companies in Thailand, must consider its future in
terms of expanding the size of its business. Given the planning and expense that goes into
future development (e.g. building a new retail store), such decisions must be carefully
analysed. It is often said that the three most important aspects of retail strategy are location,
location and location. Consequently, where Powerbike decides to expand is extremely
important. Within the same year of Powerbike starting their business in Roi Et, Nui and Ning
decided to set up a new retail office in Bangkok ? ?the city of angels? as claimed by the Thai
people.
Nui and Ning believe that Bangkok is a suitable location for their business due to the
following reasons:
1. Bangkok is the capital of, and the largest city in, Thailand. Bangkok has a
population of approximately 6.3 million people, while the greater Bangkok area has a
population of 11.9 million people (City population 2010). As the cost to own a bicycle is
relatively low, most of the residents in Bangkok should be seen as their target audience.
2. Bangkok has long been notorious for its massive traffic jams, which are still a
serious problem. Most residents tend to stress over the amount of traffic in the city. It is
very easy to get caught up in gridlocked traffic at any time of the day or night (and waste a
great deal of valuable time in the process). Hence, there is a high chance that Bangkok
residents will choose to use bike riding as an alternative transportation option for short
distance trips.
3. Government promotion of ?Bangkok Cycling Tours? by the Tourism Authority of
Thailand (TAT) to tourists (Tourism Authority of Thailand 2010), as well as the ?No Child
without a Bicycle? campaign (which allows Thai children to have bicycles to ride to school,
instead of walking barefoot for long distances) (Rotary Down Under 2007), represent
opportunities for Powerbike. As mentioned on the Asia Web Direct website: ?Cycle the
back roads at the right time of day and you?ll see another facet of this great city? (Asia Web
Direct 2010). Cycling tours have become more popular over the last few years as visitors
discover they can see places not accessible by bus or car.
4. The majority of Thai universities, both public and private, are located in or around
the capital. Nui and Ning believe that university students will use bicycles and create
demand for their products, as students are health and environment conscious.
The business is doing well. Using the first store as a financial backstop and template, Nui and
Ning believe they can duplicate the same conditions in Bangkok that generated their success
at Roi Et. They have started to research Bangkok as a suitable location for expansion, and
although they would face competition from businesses already established in the city, they
believe that their dedication to service and their breadth of service provision will give them a
foothold in the large city.
Conclusion
Despite the success Powerbike has enjoyed thus far, there are no guarantees for its future.
However, if Powerbike is to achieve success in the future, it will be from providing value to
the public. To ensure that its future is as prosperous as its past, Powerbike must keep being
innovative and must execute a successful marketing strategy.
Questions
1. Give a detailed description of the current consumer market for this business,
focusing on demographics and psychographics.
2. Consider an appropriate positioning strategy for Powerbike and give an example
of the body copy for a piece of advertising.
3. What is the likelihood of this enterprise moving to service the business market in
Bangkok? Explain your answer.
(Marketing Cases In The Asia-Pacific Region. John Wiley & Sons Australia,, 10/2010. pp. 50 –
53).
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