The document summarizes the target market for a business renting bikes, Segways, and related equipment in Koblenz, Germany. There are three main customer categories: student bike rentals, guided tours and rentals for tourists, and corporate/private event rentals. The target markets are students aged 18-30, tourists aged 40-70, and companies with 10+ employees. Key factors considered include demographics, geography, lifestyle, purchasing patterns, and market size/trends for each category. The total estimated potential market is over 664,000 customers annually.

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