PIAGGIO STATION

PIAGGIO's New Business Model to Interact with Young People in the Future

  • Year of Project: 2012

  • Project Duration: 3 months

  • Roles of Project: Design Strategist

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    #FutureStudy
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Summary

This is a project sponsored by PIAGGIO in 2012. PIAGGIO, an Italian motorcycle company, had been losing sales & its brand identity in the market for the last few years. They asked us for a design solution on how PIAGGIO can stay relevant in the industry in 2022. To find the solution, I conducted various design & business research such as market analysis, target user research, future studies, STEEP analysis, technology trend, and generation cycle study.

How can PIAGGIO utilize its core competencies to stay relevant in the industry in 2022?

Vision

1. WHAT TO PLAY?

“Motorbike Sales in 2011 Dropped by 40 Percent.”

PIAGGIO's sales in 2011 dropped 40 percent. As affordable Japanese bikes have well established their brand identity in the market, the PIAGGIO Brand image, Luxury Italian brand heritage, is no longer attractive to the customers. The more cheap Chinese bikes are getting into the market, the more the market is packed. Most of all, however, the overall market size of the motorbike has been shrunken, meaning many people are not looking for a motorbike anymore.

Goal

What might be a new business model for PIAGGIO to interact with young people in 2022?

Outcomes

  1. Optimizing PIAGGIO’s competencies to support people’s transportation needs in the future

  2. Recalibrating PIAGGIO's scope of activities for the future

  3. Reestablishing PIAGGIO’s Brand Identities & Vision in the market 

Strategy

2. WHERE TO PLAY?

Target Customer Segment

Generation Z Consumer Behavior

“Gen Z are not interested in what they have as much as

how they experience it.”

Having researched how Gen Z spends their time and money, I came up with an assumption that the younger generation, PIAGGIO's target customers in 2022, is more aware of safety. The needs for a motorcycle are no attraction to them, and the market size is getting smaller and smaller, causing sales to decrease. To stay relevant in the future, PIAGGIO has to find a channel to interact with the people at 18~30 years old in 2022 and envision their lifestyle.

How can PIAGGIO interact with young people in 2022?

Indonesia Will Be a Key Global Market for PIAGGIO in the Future

Geographic Segment

PIAGGIO is an international company. Several branches/manufacturers are located internationally, and each of them has a distinct purpose. After studying the future market, I believed that Indonesia is the major market for PIAGGIO that needed to be concentrated on due to the following reasons - High Population, Straits/Geographic Advantages, Abundance of Natural Resources, and PIAGGIO’s strong presence in South-east-countries.

More Strict Traffic Enforcement in the City of Jakarta

10 Years of Indonesia City Plan

The Indonesian government is aware of automobiles causing Traffic Congestion, Air Pollution, & Noise problems. Currently, to control the issues, the government plans out developing transportation infrastructures and enforcement regulations in the city of Jakarta.

In the future, as the population increases in Jakarta, Transportation regulations will become more strictly enforced, meaning PIAGGIO’s business model in Indonesia needs to be changed along with the plan.

How can PIAGGIO support the needs of young people in Indonesia & the government’s city plan in 2022?

Solution

3. HOW TO WIN ?

“PIAGGIO will provide young people with the freedom of commuting.”

PIAGGIO E-Trike Vending Machine for Short Term Rental Service

PIAGGIO STATION

More Young people are moving toward suburban areas, the commuting time to the city is getting longer. Public transportation and infrastructures are not enough to support their needs in the suburban areas, and their life will be constrained by public transportation schedules. 

PIAGGIO station will provide young people the freedom of commuting and support the Indonesian government with transportation in the suburban area.

Providing Young People with a Safe and Enjoyable Personal Time in Commuting

PIAGGIO E-TRIKE

The Trike is in the Autobike category of the vehicle law, which means PIAGGIO can utilize their core competencies to develop a trike. To provide a unique driving experience, PIAGGIO E-Trike will provide a fast and agile movement, which is what people like to drive a motorbike. PIAGGIO E-Trike is covered by a protective shell so that it will give a safe personal space for a rider to enjoy their commuting journey.

Tactics

4. BUILDING CAPABILITIES

Set of Activities for PIAGGIO STATION

To rollout PIAGGIO STATION in 2022, there are four capabilities needed to develop; Software Development infotainment, Electrical E-Trike development, E-Trike Rental Management, and User & Driving Data Analysis. By utilizing the PIAGGIO's existing capabilities, the four activities can be developed and form a distinct set of activities for PIAGGIO.

Next Steps

5. Review Management

Rollout Plan

In order for a city to grow, it must be able to accommodate a large number of people moving around. In a simple example, even lack of parking infrastructures can cause traffic congestion, Air Pollution, and Noise problems. Once a city is occupied, it is difficult to build up infrastructures to fill the gap. Having a partner with the Indonesian government, PIAGGIO has to look for how it can contribute to the city plan over the next ten years and compensate for the shortage of public transportation infrastructure.