Consumer Behavior Analysis
Owning a HT is more of a social want according to Pavlov’s hierarchy of needs. It seems more of a status symbol of being trendy and cool. No one really needs a HT but it’ll be cool to have one, making this market quite small.
If we had more money and the economy was bullish then we would have more money to spend on something more frivolous. Most people don’t have the cash flow to spend on this new and improved big scooter. Therefore, Segway has a very selective market - people with a lot of disposable income.
How badly do you want to be cool and different or be a trend setter? Baby boomers are retiring, and less mobile. Generation-X is making substantial income, while Generation-Y is living a more health conscious life, influenced heavily by trends.
Cultural Trends (North America)
We are getting lazier and letting technology do all the work, in the case of the HT we are letting technology eliminate walking. The following are more common trends: * Time is money
* A green solution
* Clean air
* Reduce fuel consumption
* Ease a stressed environment
The HT will be the future way of personal transportation. We let technology do so much for us already. Why not let tech help us walk and commute around too. The HT is the first of its kind, and will be the base of many other models by competitors in the near future.
Market Size and Growth
The initial market for the Segway consisted of thousands of corporations, both domestic and international. The vision was that the Segway could provide firms with environmentally conscious, inexpensive, efficient means of transportation and commuting. A typical company would be FEDEX, who could use the Segways for their urban deliveries, cut down on costs and promote conservation of fossil fuels. Walt Disney, another ideal market could use the Segway at theme parks around the world, or rent them out to visitors.
The market could eventually grow to include millions of fun-seeking consumers, but with a price of around $4,000 and a heavy weight (80lbs), the consumer market would not be as easy to enter, as most leisure devices in the Segway class (scooters) are far cheaper ($300-$1,000) and weigh about 40 lbs less.
Market Segment Analysis
Geographic and Psychographic – Segway divided the market into two segments: lifestyle-conscious, environmentally oriented people, as well as those located in busy, congested urban cities. It should be noted that the ideal segment (gold slice) is a combination of both segments within a temperate climate.
The typical consumers are cutting edge, efficiency-oriented businesses, looking to spend money to improve transportation costs. These businesses rely heavily on time saving measures and may be conscious of factors such as environmental friendliness and fuel reduction.
Sales for Segway is moving slow due to being a new product in the market. Their target market is mainly American in urban city areas. The price for a Segway can range anywhere from $4000 - $6000, which most consumers find overpriced for a new product. The largest sales for Segway come from corporate businesses, where almost 200 companies purchased the transporters in 2001 but the orders have been only a few units. Segway has anticipated shipping 50,000 to 100,000 units annually by 2003, in which most sales would be made to corporate customers with larger volumes of purchase. Segway has the potential to achieve sales in excess of $100 million, which is an annual sale of 20,000 units. Being a new invention and a new product which is costly in price, sales will take time to rise.
Online retailer Amazon.com and Segway has an auction for the transporters. Bids for the transporters topped to $30,000. Proceeds of the auction went to...