Founded in 1887 in Nottingham, England, Raleigh Wheels became known as the original all-steel bicycle manufacturer. Eventually, ownership of a Raleigh bike became a status symbol. Raleigh's product development has been significantly influenced by trends in the European market where biking had long been a lifestyle choice. Then, in the past 1 O to 15 years, technological advances have fueled bikers' desires for equipment that is lighter, faster, and better. All companies in the industry, including Raleigh, began incorporating these technological advances into their products. Sensing that it was getting lost as a company, Raleigh returned to what customers really expected. It returned to its roots as a steel bike producer for customers who are committed to bikes and biking as a lifestyle choice. Part of this impetus for returning to the all-steel bike came from the desire for messenger-style bikes by customers of Raleigh America. Customers who pursue biking as a lifestyle choice want durable equipment and a quality ride, both of which are provided by the all-steel bike. To ensure that Raleigh continues to satisfy its customers' wants and needs, Raleigh America's marketing manager constantly uses various venues to gather input from bike enthusiasts.

Video Discussion Questions

1. How can market segmentation be useful for producers of bicycles?
2. On what factors does Raleigh Wheels base its market segmentation?
3. How can Raleigh Wheels benefit from the market segment that it pursues?