Bicycle was once seen as a convenient mode of transportation. In today’s world, people usually owns a bicycle for the purpose of exercise and for recreation as well. Therefore, Zippo could have a large target market segment.
Other than that, with the brilliant relations with customer and understanding the importance of keeping in with the shop owner through personal service and good prices, Zippo may be able to gain more sales with their bicycle. A good marketing relationship may be able to build trust and loyalty between organisation and customer.
The development of a wide product range and superior design in Zippo bicycle may create an opportunity or advantages when trying to fulfil the consumer needs. People will tend to grab the product if a company or product can fit their needs. It is because everyone has different needs and wants. People nowadays prefer to shop at a location which is convenient for them to purchase all their items in one shop rather than in many shops. So, with the variety of product range of Zippo bicycle people can get what they want all in one location.
The market for bicycle is becoming different today where manufacturers in the far east dominate production for the mass market and import to the UK for exceed the number produced at home. It is cheaper for manufacturers to produce in locations like china and India as compared to producing in UK, therefore, Zippo may stand to lose market share as retailers may be able to obtain cheaper bikes.
The sales of Zippo bikes have been decreasing over the last few years, and also with the need to constantly increase the level of discount to keep stockist each year has strongly affected the profit margin of Zippo.
According to a research by Mintel, the bicycle market in the UK is currently worth £650million, and its forecast is that it is able to increase on a best case value up to £908million and worst case scenario at...