Raleigh Bicycle is a bicycle manufacturing company founded in 1887 in Nottingham, England. When the “Lance Armstrong effect” towards lighter, faster bikes began to dominate the cycling market, Raleigh needed a way to differentiate its products. Historically Raleigh is known for producing a sturdy, all-steel frame bicycle. To compete in today’s market Raleigh relied on the culture of its European consumers as well as the messenger cyclists here in the states. The result is a return to the steel-frame lifestyle bicycle for the U.S. market that stands out in a sea of training cycles and meets the needs of an emerging market.
1. How does Raleigh use its knowledge of existing consumer cultures to adapt and market a competitive product?
2. How does Raleigh’s steel-frame bicycle translate into value for their target consumer?