Reference no: EM134046009

Consumer Behaviour

Assessment - Case study report

Description Purpose: The purpose of this assignment is to assess students' capacity to provide an informed analysis of a contemporary case study in marketing.

Description: Students apply critical thinking and problem solving in assessing theory in the field of consumer behaviour. They effectively communicate in writing the relevance of applied consumer-behaviour theory. This individual assessment requires that students read and reflect upon the case study on Giant Bicycle (provided on CANVAS) and answer the questions listed in the case. Answers should be succinct, concise and focus on directly answering the case-study questions using relevant consumer behaviour theory. Students must support answers with clear evidence (i.e. one scholarly article per question) in making arguments. This assessment is designed to advance academic writing skills, ability to synthesize marketing information and apply consumer behaviour knowledge. The answers relate to topics covered in weeks 1 to 6.

Format of Report 1. Introduction - Briefly introduce Giant bicycle and its journey from a low-cost brand to a respected competitor.
2. Case Analysis - This requires you to address each of the four discussion questions in depth. Your discussion should demonstrate a clear understanding of consumer behaviour concepts and how Giant Bicycle applied these principles strategically. Each question requires thorough analysis and practical application of theories.
3. Conclusion - Summarise how Giant Bicycle successfully leveraged consumer behaviour theories to reshape its brand image and gain consumer loyalty.
4. References - Cite sources relevant to consumer behaviour theories and any additional research on Giant Bicycle or the cycling industry. Students are not to contact any firms associated with the case, but are to use secondary resources only.

Case Study: Giant Bicycle - Shaping Consumer Behaviour in the Cycling Industry

Background: Giant Bicycle, founded in 1972 in Taiwan, has grown to become one of the world's largest bicycle manufacturers. The brand is known for producing a wide range of bikes, from high-performance road and mountain bikes to affordable options for everyday riders. Giant's marketing strategy has effectively leveraged consumer perception, motivation, learning, and attitudes to establish itself as a leading name in the cycling industry.

Perception: Giant Bicycle faced the challenge of competing with established brands in the cycling market, such as Trek and Specialized. The perception of Giant as a brand was initially that of a low-cost option with lower quality. To change this perception, Giant focused on:

• Quality and Innovation: The company invested in research and development to create high-quality bicycles with advanced technology. By emphasizing innovative designs and superior performance, Giant repositioned itself as a brand that could compete with premium manufacturers.
• Brand Ambassadors and Sponsorships: Giant partnered with professional cyclists and teams, sponsoring races and events to enhance its visibility and credibility. This association with high-level athletes helped shift consumer perception towards viewing Giant as a serious competitor in the cycling world.

Motivation: Giant tapped into various consumer motivation to drive sales:

• Health and Fitness: With a growing interest in health and fitness, many consumers are motivated to cycle for exercise. Giant's marketing emphasized the health benefits of cycling, appealing to fitness-conscious consumers.
• Environmental Concerns: As awareness of environmental issues has increased, many consumers are motivated by sustainability. Giant promoted cycling as an eco-friendly transportation option, aligning with consumers' values regarding environmental responsibility.
• Community and Lifestyle: Giant positioned cycling as part of an active lifestyle and a community-oriented activity. By organizing local events and group rides, the brand fostered a sense of belonging among cyclists.

Learning: Giant implemented several strategies to facilitate consumer learning about cycling and the brand:
• Educational Content: The company created informative content, including tutorials on bike maintenance, safety tips, and training programs. This helped consumers feel more confident in their cycling abilities and knowledge.
• In-Store Experience: Giant's retail locations provided hands-on experiences where customers could test bikes, receive expert advice, and participate in workshops. This experiential learning built consumer confidence in their product choices.
• Online Engagement: Giant utilized social media and its website to share success stories, cycling tips, and community events, promoting continuous learning and engagement among consumers.

Attitude: Through its marketing efforts, Giant influenced consumer attitudes towards its brand and cycling in general:

• Positive Brand Image: By emphasizing quality, community, and a healthy lifestyle, Giant cultivated a positive brand image that resonated with various consumer segments.
• Consumer Loyalty: By fostering a sense of community and providing valuable resources, Giant built strong brand loyalty among its customers. Many cyclists began to view Giant as their preferred brand for all cycling needs.
• Changing Attitudes Towards Cycling: Giant's marketing initiatives also contributed to changing attitudes toward cycling as a viable mode of transportation and leisure activity, helping to increase overall interest in the sport.

Results: Giant Bicycle has successfully established itself as a global leader in the cycling industry, achieving significant market share and consumer loyalty. The brand's strategic focus on perception, motivation, learning, and attitude has allowed it to compete effectively in a crowded market.

Discussion Questions:

Question 1. How did Giant Bicycle successfully change consumer perceptions from that of a low-cost brand to a high-quality competitor?

Question 2. What specific consumer motivations did Giant target through its marketing strategies?

Question 3. How did Giant facilitate learning among its customers about cycling and the benefits of its products?

Question 4. In what ways did Giant cultivate a positive attitude toward its brand among cyclists?