Target Market Demographic Description The general customer is characterized by one or more of the following features: active, healthy, environmentally aware, fun seeking, spontaneous, keen on experimenting or eager to learn. Furthermore, the target market can be divided into three categories of the services offered: · Student bike rental · Guided tours and rental for Segway, tandem, bikes · Corporate and private event rental and entertainment Student bike rentals are geared to the needs for transportation of male and female students in Koblenz in the age range from 18 to 30 with a limited budget and low income range. Foreign students who are only staying for a limited time, or students who originate from further away than the surrounding federal states and are especially likely to be attracted by the company’s products. Students are also mainly the target market for skate rentals. Guided tours and rentalsgenerallyencourage people of all age groups to be active in the outdoors. However, research revealed that higher priced guided tours and Segway rentals, as well as bike rentals in the region, are most likely to attract and satisfy the needs of affluent tourists and locals at the age of 40 to 70 (Works). Furthermore, doing surveys about the characteristics of bike tourists in Rhineland-Palatinate revealed that they are mainly between 35 and 65 and white-collar worker or retired with a high level of education (Europaeisches Tourismus Institut an der Universitaet Trier GmbH). Concerning nationalities, approximately one fourth of tourists in Koblenz are from foreign countries, mainly from English-speaking (USA, UK) and the BENELUX countries (Koblenz city council - statitics department). Corporate and private event rentals and entertainment programsare developed for the midsize and large companies as entertainment on office parties, and team building options on private or office parties and staff outing. Advertising opportunities on Student bikes will be offered to local businesses that provide student related services or products. Geographic Description The main target markets are locals and visitor of Koblenz and the narrow surrounding area. The company will be present once a month for about three hours on the two campuses of the Universities of Koblenz to promote bike rental options. An internet presence in German and later also in English and French as well as strategic marketing partnerships with the tourism board of Koblenz, the German and federal bike associations and other companies will also announce the company’s services to the target group in the wider geographical area. Lifestyle and Psychographic Description College students are usually part time workers with a low budget and high need for entertainment and leisure activities. Budget restrictions and high gas prices force students to use the public transportation services of Koblenz. However, a bike would give them more flexibility to commute between downtown and th ...

1. Target Market
Demographic Description
The general customer is characterized by one or more of the
following features: active, healthy, environmentally aware, fun
seeking, spontaneous, keen on experimenting or eager to learn.
Furthermore, the target market can be divided into three
categories of the services offered:
· Student bike rental
· Guided tours and rental for Segway, tandem, bikes
· Corporate and private event rental and entertainment
Student bike rentals are geared to the needs for transportation of
male and female students in Koblenz in the age range from 18 to
30 with a limited budget and low income range. Foreign
students who are only staying for a limited time, or students
who originate from further away than the surrounding federal
states and are especially likely to be attracted by the company’s
products. Students are also mainly the target market for skate
rentals.
Guided tours and rentalsgenerallyencourage people of all age
groups to be active in the outdoors. However, research revealed
that higher priced guided tours and Segway rentals, as well as
bike rentals in the region, are most likely to attract and satisfy
the needs of affluent tourists and locals at the age of 40 to 70
(Works). Furthermore, doing surveys about the characteristics
of bike tourists in Rhineland-Palatinate revealed that they are
mainly between 35 and 65 and white-collar worker or retired

2. with a high level of education (Europaeisches Tourismus
Institut an der Universitaet Trier GmbH). Concerning
nationalities, approximately one fourth of tourists in Koblenz
are from foreign countries, mainly from English-speaking
(USA, UK) and the BENELUX countries (Koblenz city council -
statitics department).
Corporate and private event rentals and entertainment
programsare developed for the midsize and large companies as
entertainment on office parties, and team building options on
private or office parties and staff outing. Advertising
opportunities on Student bikes will be offered to local
businesses that provide student related services or products.
Geographic Description
The main target markets are locals and visitor of Koblenz and
the narrow surrounding area. The company will be present once
a month for about three hours on the two campuses of the
Universities of Koblenz to promote bike rental options.
An internet presence in German and later also in English and
French as well as strategic marketing partnerships with the
tourism board of Koblenz, the German and federal bike
associations and other companies will also announce the
company’s services to the target group in the wider
geographical area.
Lifestyle and Psychographic Description
College students are usually part time workers with a low
budget and high need for entertainment and leisure activities.
Budget restrictions and high gas prices force students to use the
public transportation services of Koblenz. However, a bike
would give them more flexibility to commute between
downtown and the University. They frequently use the web for
information and communication services. Social networks such

3. as “Studivz“, “Facebook“ and “Wer-Kennt-Wen“ are pages
frequently visited. Targeted students are in the age of 18 to 25,
trend oriented, fun seeking, environmentally concious and
responsible. It is therefore important to offer rental bikes that
are in trend but also practical for there daily transportation
needs.
Tourists visit Koblenz on the way through the Rhine or Mosel
valley and stay only for a day or overnight guests for an average
of two days in the city; tourists interested in renting a bike need
a flexible offer that allows them to leave there bike wherever
they are, without having to come back to the company’s
office.Furthermore, they are cultural interested and are
increasingly demanding for unique experiences on their
holidays. Seg and Cycle the City will meet this demand by
offering an alternative to walking city tours. Tourists also want
to take pride in telling friends about their vacation experience.
A Segway city tour is unique and will enhance their experience
and fulfil their desire to improve their status among friends.
Fascinating historical buildings and sights combined with new
technology is what they are looking for. The description of
early eagers describes this segment well. They are also
interested in culinary experiences, visiting museen and castles,
tasting local wine or doing a boot trip on the river. These
aspects will be considered in the choice of marketing channels
and partners.Moreover, bike tourists are fun-seeking, active,
environmentally concious and live a healthy lifestyle. A survey
conducted among bike tourists in Rhineland-Palatinate revealed
that the purposes for using a bike on vacations are: fun factor,
being healthy and stay fit, it is convenient and it conserves the
environmentand that decisions are mainly based on
recommendations of friends and family, brochures, online and
by visitor centers. Bike specific magazines are less popular
(Europaeisches Tourismus Institut an der Universitaet Trier
GmbH). Locals targeted are looking for activites to fullfill their
available leisure time and spend their weekend with family and
friends.

4. Targeted companies are environmetally conscious, value team
work and seek to provide a good working environment for
employes to improve their image in the labour market and
among partners by providing unique entertainment next to
business issues. A successful office party and a content
workforce is of high priority for them. Potential customers for
bike advertinsing are companies that offer products and services
for students and seek new possibilities to set themselves apart
from the competition and provide in trend advertising that
boosts their image for the younger population.
Purchasing Patterns Description
Students have restricted budgets and will welcome an
alternative to purchasing a bike. They are likely to continue the
rental contract after one month for this reason but interrupt
rental during the winter months. Students are not likely to rent
for longer than one year as a cheap purchasing price will be
offered to them after that time or they move away. Purchasing
decisions will be mainly made with the start of a semester,
when they discover the need for a flexible transportation to
commute between the city burdens. The rental service will be
announced on an ongoing basis through flyers and posters on
campus, emails as well as physical presence once a month to
offer maintenance services on campus.
All of our products are mainly created used in the outdoors to
get around the city or enjoy a ride along the riverbank.
The typical buying patterns of rental customers is to either
search on the internet for offers or call different bike or outdoor
shops and ask for rental equipment. Tourists ask the hotel
employees or their host for advice or call the local tourism
board for help. Convenience and availability are typical
variables that customers are concerned with.

5. Tourists will purchase the company’s services once and are
likely to come back for their next visit as management is
committed to satisfy customers to the highest, through
providing quality customer service. Frequency is expected to be
an average of a year due to yearly repeated visits for events.
Purchasing decisions for rental equipment will be made no
longer than one week in advance whereas city tours are
expected and recommended to be reserved at least one months
in advance due to limited capacities. All services can be
reserved via email, in person or on the phone. Accepted
methods of payment are cash and money transfer in advance.
For the second year the management will rent a POS System to
be able to accept VISA and Master Cards.
Buying Sensitivity Description
Students are especially sensitive to prices and can be captured
through special offers and advertising. Image is important to
attract a younger target segment. Due to limited mobility, a
central location and frequent presence on campus will increase
sales.
Tourists value quality of experience and will be attracted to
product bundling and packaging, such as wine testing in order
to be able to explore as much as possible of the city in a short
time with the least amount of involvement in the planning
process. Therefore, people are usually less price sensible on
vacations.
Location is also an important factor as it encourages short term
decisions and the opportunity to start their exploration tour
right away. Furthermore, a pickup service for bikes will
increase their flexibility and satisfaction. Quality customer
service and personal relations is another important success
factor in order to enhance the clients’ experience.

6. Market Size and Trends
Two universities are located in the city of Koblenz. The largest
is the University of Koblenz with 6,257 students in 2007/2008
and the University of Applied Science has 5,885 students in
2007. The following statistic shows the origin of students at the
University of Koblenz. Students likely to purchase our services
are those who originate from further away than the surrounding
states as they are less likely to already own a bike and take it
with them. From the statistic below it is estimated that 36.6%
(foreigners plus students originated from further away than
surrounding states) of total students are potential customers for
the student rental program (Statistisches Landesamt Rheinland
Pfalz).
The University of Applied Science in Koblenz reported a
number of around 25 foreign students (Schellenbach). The
company also estimates 5% of the 5,885 students to be potential
customers. Consequently, management revealed a total sales
potential of 2,604 students.
The city tour and rental market in Koblenz can be segmented
into:
1. Overnight visitors – the number of guests that
accommodations in Koblenz have reported (283,174 in 2007)
spending around € 56,193,418.
2. Day-trippers: “Endbericht Mittelrhein 2007” for Koblenz
calculates the number in accordance to the “German Economic
Institute for Tourism (DWIF)” by multiplying inhabitants
(106,024) with the number of trips per year (36). The average
expenditure of day-trippers is calculated to be around €28 per
day. Therefore, the company estimates that only 5% of all day-
trippers are likely to purchase Segway tours and 8.5% for other

7. rentals (Forschungskreis Tourismus Management Trier e.V.).
Market Analysis
Market Potential SegwayMarket Potential Bike/Skate/Tandem
To compute the total sales potential for Segways the following
segmentation factors are being applied: Age, Interest and
Income
According to a survey among Tourists in Germany (domestic
and foreign) conducted by Qualitätsmonitor Deutschland-
Tourismus (results are attached in appendix) a 45% of visitors
in Germany are between 40 and 70 and 71% are interested in
sightseeing (Europaische Reiseversicherung AG und DTZ). The
annual report for Germany states that around 40% of all german
inhabitants have an income of more than 2000 ($2723) Euro per
month (Federal Statistical Office).
Consequently, the estimated number of potential customers for
guided Segway tours or rentals is 59,726.
To compute the total sales potential for bike/tandem and skate
rental the following segmentation factors are being applied: Age
(same number as above) and Interest in outdoor activities
during vacations.
Besides 13% who like to go on an all bike trip for holidays (not
included in target market) 24% of all vacationers in Germany
like to be active or do sports on holidays (Europaische
Reiseversicherung AG und DTZ). Applied to the total market
potential, management estimates a number of 71,805 potential
customers for bike/tandem and skate rentals/tours per year.

8. For 2011, when the National Garden Show takes place in
Koblenz, the committee that is in charge of the organization
estimates to attract around 1.75 Mio. visitors for the period of
April to October 2011. Consequently, management estimates to
be able to double sales to tourists in the second year, due to
increased advertising expenditure for that year and equipment
purchases.
The market for event entertainment is comprised of companies
with a size above 10 employees and based on the following
graph that shows the number of respondents to a survey
conducted by the chamber of commerce in Koblenz. A number
552 potential customers are estimated. Management also expects
a growth rate of 2% every year due to increased knowledge and
advertising efforts by the company (IHK Koblenz).
Total Visitors to Koblenz = 4,102,045
Total market potential = 664,860
Total market potential = 474,017
Number of number of % of
Employees responding companies
responding companies

9. Competition
Competitive Position
Seg and Cycle the City will be the only store to offer Segway
and tandem tours as well as roller skates rental in Koblenz.
Furthermore, it will be the first company to offer bike rentals
targeted to students. Nevertheless, there are a variety of
products and services provided by local companies that can be
seen as trade-offs for the company’s products and are mainly
considered budget or generic competitors.
Companies with competing products are:
· Retail bike stores who offer bikes for rental
· Retailer stores selling inline skates
· Segway-Koblenz who offers Segways for rental
· Walking and other sightseeing tours offered by the tourism
board of Koblenz
· Burg and bike who offers bike rentals and mountain bike tours
outside of Koblenz
· Other leisure activities such as cruise operators
· Koblenz old town express, a small train operating April to
October to drive visitors around the old part of the city
Although offering similar product as Seg and cycle the city, the
tourism board of Koblenz (Koblenz-Touristik) and Segway-
Koblenz will not be viewed as direct competitors as both
companies are expected to benefit from Seg and Cycle the City.
For one, the company will enter a purchasing and leasing
contract with Segway–Koblenz and provide a significant amount
of revenue for the company. Furthermore, the company will
benefit from the publicity gained for Segway. Concerning
Koblenz-Touristik, the owner-operated tourism board of

10. Koblenz, Seg and Cycle the City pursues common goals of
improving the image of the city, attracting more visitors to
Koblenz and make their stay a memorable one. Entering a
strategic partnership will strengthen the relationship between
Seg and Cycle the City and the Tourism board. In return for
including the products in their promotional literature or
packaged tours, Seg and Cycle the City will offer advertising
space on Segways.
Currently, they have the advantage of being an established
organization, associated with the city which provides a high
amount of credibility.
Competitive Edge
Seg and Cycle the City’s comparative edge is recognizing a
niche market that is unfulfilled at the moment and providing
excellent customer service compared to most rental places that
only go briefly over the features of the rental equipment. Seg
and Cycle the City sees helping the customers with fitting
bicycles and explaining different features as an opportunity to
impress them and encourage repeated business.
The figure in the next sections shows that the tourism board of
Koblenz currently serves less than a quarter of overnight
tourists by their guided walking tours and theme tours. Seg and
Cycle the City will capture the rest of visitors who consider
walking tours as exhausting, too crowded and old fashioned,
and bus or the old town express as impersonal with no room for
individual questions. The company, on the other hand, combines
a relaxing, fun and innovative transportation device and
valuable information about the city with small group experience
and a close relationship between customers and staff.
Furthermore, independent-minded visitors have the option to
rent a MP3 Audio-City guide delivering the same valuable
information with the opportunity for customers to set their own
schedule and time. The central location of the company’s retail
store provides a comparative advantage over Segway Koblenz,

11. who also offers rentals, but is more concentrated to selling and
leasing the vehicle in the broader region.
Bike rentals are offered by only a few retail bike shops in
Koblenz and one provider outside of Koblenz (Burg & Bike 4.5
miles away). However, only one retailer is currently mentioned
on the homepage of the tourism board of Koblenz. Management
recognizes the opportunity to gain market share and
differentiate the company from the competition with targeted
advertising efforts to tourists. Another advantage of the
company is that rental equipment offered by retailers is usually
limited. Seg and Cycle the City will win a competitive
advantage by offering mountain bikes in addition to city and
trekking bikes, as well as skates in different sizes and thereby
attract a larger market segment. With at least five tandems, Seg
and Cycle the City will also attract families and groups
travelling to Koblenz, which retailers cannot serve.
Market Share Distribution
There is currently one bike store in the inner city of Koblenz
who offers bike and tandem rentals, called “Zangmeister.”
“Caravan Hire Koblenz” which is located in a district of
Koblenz also offers a small amount of bikes to their customers
which are different from the company’s target market as it
targets hotel guests rather than campers. Furthermore, Burg &
Bike which is located around 4.4 miles outside of Koblenz.
Segway Worms, which is about an hour and a half away from
Koblenz, is currently the only company to offer Segway tours in
Rhineland-Palatinate. This area is geographically located
outside our potential target market and is therefore only to a
small amount considered as competition. Seg and Cycle the City
will benefit from Segway Worms’ publicity for Segways.
(Ohlwein)

12. (Ohlwein)
Future Competition and Barriers of Entry
As in Rhineland-Palatinate regulations require a special permit
issued by the administrative district for operations of Segways
on public roads, that are fairly expensive (100 Euro each) and
take some time, potential competitors are hesitant to enter the
market. For the bike industry, on the other hand, barriers of
entry are fairly low. By establishing strong strategic
partnerships with local tourism suppliers and by establishing the
company’s brand among students, the market will appear
unattractive for future competitors due to Seg and Cycle the
City’s first mover advantage. Furthermore, the high start-up
costs of 15,000 Euro and 700 Euro per month in addition to the
high inventory costs for Segways will prevent small competitors
to enter a tour franchise contracts with Mindways (one German
Segway dealer), especially if there is already a tour guiding
company established in the market. Nevertheless, Seg and Cycle
the City has to take track of bike retailers in the region and
other bike stores to offer cheap deals for students to purchase
bikes, as well as the threat by retailers to enter the rental
business. Furthermore, hotels might start offering bike rentals
as a free service for their guests. This can be prevented by
entering negotiation with hotel owners and offering packages or
reduced rates to their customers.
Estimated share of Seg and Cycle the City of the total added
value generated by overnight guests in Koblenz ($76,512,958 in
2007 (Forschungskreis Tourismus Management Trier e.V.)) is
0.15% for the first year.

13. Strategic Position & Risk Assessment
Seg and Cylcle the City’s objective is to become well-known in
Koblenz, Germany and the surrounding communities for
providing an exceptional city experience not only for those new
to the city, but locals as well. The company will captilalize on
the following core competencies to become the premier rental
and tour provider for Koblenz:
· High quality information combined with entertainment
· Personalized Customer Service
· Innovative Products and Services
· Strategic Partnerships
· High flexibility in services
Seg and Cycle the City’s strategic position is based on
evaluating the following factors:
A. Industry Trends and Opportunities
B. Customer Needs
C. The Competitive Environment
D. Our Strengths
E. Risks
Industry Trends and Opportunities
As a result of the emerging speciality tourism industry and
increasing variety of products and services offered to provide
unique experiences, tourists become more and more demanding
for new and different services. Also, issues that are apparent in
the development of the tourism industry provide opportunities
of: eco-friendliness, healthy living, comfort and relaxation,
increased historical and cultural interest, unique experiences
and serice bundling.
The “new” tourist expects all this at the same time with the
least involvement in the planning process. City tourism and
short trips to explore one’s own country became more popular

14. as a result of current economy conditions.
Customer Needs
The company’s target market is tourists, companies, and
students. A survey conducted by “Qualitaetsmonitor” in
2007/2008 found that tourists in Germany are comprised of 84%
Germans with only 15.1% from other countries. Furthermore,
the survey revealed that relaxation, culture, activities, as well as
city tourism are the most popular purposes to travel. Since
tourists value being active while on vacation, but bringing their
own bike is not very popular, Seg and Cycle the City meets
their needs by offering short term rentals that are available on
site. Moreover, the image of a city is among the most important
factors for the decision-making. Seg and Cycle the City seeks to
contribute to the image of the city by providing a way for
people to enjoy the city tourism while being active. Related
graphs are attached in the appendix.
Corporate entities need to find new ways to advertise
themselves and create a favourable image among customers, the
labour market, and business partners. Therefore, proving eco-
friendliness and team building solutions for a better and more
personal working environment are important in order to succeed
in every field. The company will serve a need in the market that
is comprised of; exchange students, faculty members as well as
students who are from further away than the surrounding federal
states, that are looking for a flexible and low-cost solution to
commute within the city.
Competitive Environment
There is no comparable tour and rental business in Koblenz yet.
Although, different companies provide bike rentals, walking
city tours and Segway rentals, the business concept of Seg and
Cycle the City is unique. As a first mover in a market with low
barriers of entry, management will use the opportunity to build
substantial relationships with the target market as well as
building strategic partnerships with local providers and the

15. University before an effective competitor enters the market.
Strengths
Compared to conventional walking and city bus tours, the
company bundles a small group experience as well as high
quality historical information with a new technology for
transportation. As a small company, with the extensive local
knowledge will enable the company to provide; flexibility for
individual customer’s demands and needs, provide excellent
customer service and attention in order to exceed customer’s
expectations. Well trained employees who are able to share
their passion for outdoor activities provide excellent people
skills and ensure a successful, entertaining tour. The company
meets the need of currently neglected independent-minded
tourists who prefer to discover the city on their own but desire a
more convenient way than reading a travel guide while walking.
The goal is to increase and vary the company’s product line on
a regular basis in order to achieve customer loyalty and
encourage repeated business.
Risks
Segway tours have been implemented successfully in various
bigger cities. Nevertheless, the Segway tours in Koblenz are a
new market and provide risks. A potential risk is due to low
barriers of entry, the threat of competition from various
franchise opportunities offered by Segway companies.
Furthermore, a successful bike rental model might encourage
hotels or retailers to also offer bike rentals for customers. The
uncertainty about the success of the National Garden Show in
Koblenz provides the risk that sales do not transpire as
anticipated or exceed all expectations which negatively affects
the quality of customer service which is crucial for the success
of the business.
Strategic Position
After assessing the risk, we realize that the biggest threat is

16. unexpected demand due to the National Garden Show which is
especially crucial in the introduction phase of a new business.
Unexpected growth can also threaten the high quality and
customer service standards of the company. Therefore,
management needs automate operations in the first year to
prepare for the expected growth in the second year. Prior to the
start of the business management should have already developed
new tour and entertainment concepts in order to be able to
provide flexible services.
The ability to provide flexible and customized solutions for the
needs of tourists and corporate entities, strong strategic
partnerships, as well as being able to react quickly to changes in
demand by adapting our rental equipment will reduce the risk of
failure and help the company build a competitive advantage as a
first mover in the market to make the market unattractive for
future competition.
Results of the survey conducted by “Qualitaetsmonitor and a
S.W.O.T Analysis are attached in the appendix.
Market share of Koblenz-Touristik - All visitors
guests participating in guided tours by Koblenz-Touristik
individual tour or others 1.787905525679382E-2
0.9821209447432061 Market share of Koblenz-
Touristik - All visitors guests participating in guided tours by
Koblenz-Touristik individual tour or others 73332
4028227
Market share of Koblenz-Touristik – overnight guest
guests participating in guided tours by Koblenz-Touristik
individual tour or others 0.25896536746088084
0.7410346325391195 Market share of Koblenz-
Touristik – overnight guest guests participating in guided
tours by Koblenz-Touristik individual tour or others 73332
209841
Estimated share of Seg and Cycle the City
of the total added value

17. Estimated share of Seg and Cycle the City of the total added
value generated by overnight guests in Koblenz Sales Seg
and Cycle the City Other tourist companies
1.5341976453191108E-3 0.99846580235468085