Lubes em Foco Magazine – issue 94
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Introduction
A company’s success depends on offering the right product to the right consumer at the right time. To do this, marketers need to know their customers inside out, making market segmentation a vital tool for organizations to study and segment consumer behavior – a tool that can yield enormous dividends.
This article presents a preliminary analysis of market strategies based on consumer segmentation, with a specific focus on the motorcycle lubricants sector in Brazil. Combining theoretical framework and practical vision, we will explore everything from fundamental concepts to concrete applications, considering the Brazilian context and the particularities of this market, without claiming to exhaust the subject.
1 Competition/Strategy Concept Based on Consumer Segmentation
1.1 What is Market Segmentation?
Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar characteristics, needs, or behaviors. By identifying and targeting specific segments, companies can better tailor their products, services, and marketing efforts to meet the needs and preferences of their target audience.
A Harvard Business School study in the US found that 95% of new products fail due to ineffective marketing segmentation. This is because each consumer has unique requirements, and a one-size-fits-all marketing strategy will not work to engage consumers across the board.
1.2 Why is Segmentation Important for Competitive Strategy?
Market segmentation is crucial for businesses to effectively target their desired audience and tailor their marketing efforts. By dividing a larger market into smaller groups, businesses can:
1. Create more personalized messages: Communication that resonates with the specific needs of each group.
2. Improve customer satisfaction: Products and services that better meet specific expectations.
3. Increase profitability: By targeting the right customers with the right strategies, businesses improve their conversion and loyalty rates.
4. Identify unserved niches: Uncover market segments with unmet needs.
5. Optimize marketing resources: Direct investments to the most promising segments.
As Mauro F. Guillén points out in his article “The Future of Marketing Is Intergenerational” in the Harvard Business Review (2024), “companies have traditionally focused their attention on people in their 20s, 30s, and early 40s, considering them the largest age groups, the biggest spenders, and the trendsetters.” However, this approach is changing as demographics evolve and new consumption patterns emerge.
1.3 Types of Market Segmentation
There are four main types of marketing segmentation based on unique attributes:
Demographic Segmentation
Demographic segmentation is the simplest and most generalized category. It creates large groups of people based on: – Age – Gender – Income – Education – Occupation – Marital status – Religion
Practical example: A high-performance motorcycle lubricant may be targeted primarily at men aged 30-45 with above-average income.
Psychographic Segmentation
People who think alike tend to buy alike. Psychographic segmentation groups users based on: Attitudes, Lifestyles, Interests, Values or Personality.
Practical example: A synthetic-based lubricant, not mineral, can be targeted at motorcyclists with sustainability and environmental concerns, regardless of age or income.
Behavioral Segmentation
As marketing expert Jon Miller put it: “Knowing who your customers are is great. Knowing how they behave is even better.” Behavioral segmentation divides customers based on: – Motivation for use (in the case of motorcycles, for example, “work”, “commuting”, “leisure and adventure”, “status and passion”); Purchasing patterns – Frequency of use – Brand loyalty – Benefits sought – Occasions of use – User status (potential, first-time user, regular)
Practical example: A premium lubricant might be targeted at motorcyclists who change oil more frequently than average and value performance above price.
Geographic Segmentation
Geographic segmentation groups people based on: – Geographic location – Climate – Population density (urban/suburban/rural) – Regional cultural characteristics
Practical example: Lubricants with special protection against dust can be targeted at motorcyclists in arid regions or regions with many unpaved roads.
2 Step by Step Guide to Adopting Segmentation-Based Strategies
2.1 Current Customer Analysis
The first step to developing an effective segmentation strategy is to analyze the current/potential customers of the product and/or service:
• Get direct feedback: Ask customers about their experience with the product through qualitative market research.
• Brainstorm with the sales team: The sales team spends most of their time talking to customers, so their ideas are a critical resource.
• Analyze website and social media data: Use metrics such as time spent, bounce rate, and key pages to better understand customers and engagement levels.
• Analyze audience interest: Map consumer online habits. If a consumer visits the site to explore a particular product category, place them in the corresponding psychographic segment.
2.2 Creating Consumer Segments
Once you have a better understanding of your consumer, you can divide your market into relevant segments:
1. Identify relevant segmentation variables: Determine which characteristics are most important to differentiate consumers in your market.
2. Develop segment profiles: Create detailed descriptions of each segment, including demographic, psychographic, behavioral, and geographic characteristics.
3. Assess the attractiveness of each segment: Analyze the size, potential growth, profitability, and accessibility of each segment.
4. Select target segments: Choose the segments that offer the best opportunities for your company.
2.3 Developing Strategies for Each Segment
With the segments defined, it is time to develop specific strategies:
1. Positioning: Define how the company wants to be perceived in each segment.
2. Marketing Mix: Adapt product, price, place (distribution) and promotion for each segment.
3. Implementation plan: Define resources, schedule and success metrics.
4. Monitoring and adjustment: Monitor results and make adjustments as necessary.
2.4 Implementation and Measurement of Results
Effective implementation requires:
1. Internal communication: Ensuring that the entire organization understands the segmentation strategy.
2. Resource allocation: Directing appropriate resources to each target segment.
3. Coordinated execution: Ensuring that all areas of the company work in alignment.
4. Performance measurement: Establishing clear KPIs to assess the success of the strategy.
5. Continuous learning: Using the results to continually refine the approach.
3 The Brazilian Motorcycle and Lubricant Market
3.1 Overview of the Motorcycle Market in Brazil
According to estimates by FactorK and Senatran – National Traffic Secretariat:
• Brazil has a circulating fleet of motorcycles, scooters and mopeds, of approximately 17 million units in 2024 – FactorK, representing about 30% of the automotive fleet (the number of registered motorcycles according to the National Traffic Secretariat exceeds 35 million, but this number does not consider scrapping)
• FactorK estimates that in ten years the number of motorcycles will reach 32% to 33% of the automotive fleet, maintaining the growth trend.
• There are 39.4 million CNHs that include category A. (National Traffic Secretariat – Senatran 2024)
• The predominant profile of drivers is male (75%), with permission also in category B (76.8%).
• The main age groups are 30 to 39 years old (11.6 million people) and 40 to 49 years old (10.2 million).
In terms of regional distribution of the circulating fleet, FactorK estimates point to:
• States with the highest absolute number of circulating motorcycle fleets: São Paulo (3.2 million), Minas Gerais (1.7 million), Bahia (1.02 million), Ceará (1.02 million) and Rio de Janeiro (850,000).
3.2 The Motorcycle Lubricant Market in Brazil
According to data from FactorK (2024):
• The Brazilian lubricants market is estimated at around 1.5 billion liters in 2024.
• The automotive sector – light vehicles, represents around 35% of total consumption.
• The motorcycle segment (MCs) represents approximately 27% of total consumption of light automotive lubricants.
• Motor oils are the most consumed type of product due to the large volume required and high replacement frequencies.
Segmentation of the Motorcycle Lubricant Market in Brazil
4.1 Relevant Segmentation Criteria
For the purposes of the analyses in this article, we defined some of the following segmentation criteria that are particularly relevant to the Brazilian motorcycle market:
Age Segmentation
• Young people (18-29 years old): Generally more price-sensitive, seek information online, tend to be beginners.
• Adults (30-49 years old): Greater purchasing power, value quality and performance, represent the largest group of drivers.
• Matures (50+ years old): Value reliability and established brands, tend to be more loyal to brands.
Targeting by Personal Interests
• Technology enthusiasts: They look for innovative and high-performance products.
• Economical: They prioritize cost-benefit and durability.
• Environmentally conscious: They value products with a lower environmental impact.
• Adventurers: They look for products that are resistant to various conditions.
Segmentation by Life Moment
• Beginners: First motorcycle, limited technical knowledge, tight budget.
• Professionals: Intensive use for work, focus on durability and cost-benefit.
• Established: Financially stable, value quality, may have multiple motorcycles.
• Retired/Hobbyists: Occasional use, value quality and premium brands.
Segmentation by Primary Motorcycle Use
• Work/Delivery: Daily intensive use, high mileage, frequent oil changes.
• Daily commuting: Regular use, average mileage, scheduled maintenance.
• Leisure/Ride: Occasional use, variable mileage, greater willingness to buy premium products.
• Mixed: Combination of uses, varied needs.
Segmentation by Purchasing Habits
• Price-oriented: Always looking for the most economical option.
• Quality-oriented: Willing to pay more for superior products.
• Convenience-oriented: Value ease of purchase and application.
• Brand-oriented: Loyal to specific brands, less price-sensitive.
Other segmentations could include level of education, geographic region of residence (urban, rural, metropolitan) and predominant type of motorcycle – low displacement (up to 150 cc); medium displacement (151 cc – 500 cc); high displacement (above 500 cc) or even type of engine – combustion versus electric.
4.2 Customer groupings / “clusters” for the Brazilian Market
Based on the data collected and the segmentation criteria identified, we arrived at five customer groups that represent, non-exhaustively, key segments of the Brazilian motorcycle lubricants market:
Group 1: The Professional Motorcyclist
Demographic Profile: – Male, 32 years old – Resident in São Paulo (capital) – Completed high school – Monthly income: R$ 3,000-4,000
Life Stage: – Married, with a young child – Has worked as a delivery person/motorcycle courier for 8 years – Supports his family with his income
Motorcycle Use: – Intensive use for work (delivery apps) – Travels about 200-250 km daily – Motorcycle: Honda CG 160 (2021) – Changes oil every 3,000 km (approximately once a month)
Buying Behavior: – Extremely price-sensitive – Seeks value for money – Buys from local auto parts stores or large chains when there are promotions – Intermediate technical knowledge about maintenance
Personal Interests: – Fuel economy – Engine durability – Most profitable delivery apps – Traffic safety
Challenges and Needs: – Maximize working time (minimize maintenance stops) – Reduce operating costs – Extend the life of the motorcycle – Protect the engine during intensive use
Group 2: The Urban Motorcyclist
Demographic Profile: – Female, 28 years old – Resident in Belo Horizonte – Completed higher education – Monthly income: R$5,000-6,000
Life Stage: – Single – Works as a marketing analyst – Financially independent
Motorcycle Use: – Daily transportation to work and social activities – Rides about 50-70 km daily – Motorcycle: Yamaha Fazer 250 (2022) – Oil change every 3 months or 3,000 km
Buying Behavior: – Values quality and convenience – Willing to pay more for premium products – Purchases from dealerships or specialized stores – Basic technical knowledge, trusts reliable mechanics
Personal Interests: – Practicality in urban mobility – Groups of female motorcyclists – Stylish accessories and protective equipment – Sustainability
Challenges and Needs: – Products that offer convenience – Simplified maintenance – Reliability and safety – Products with a sustainable appeal
Group 3: The Experienced Motorcyclist
Demographic Profile: – Male, 48 years old – Resident in Fortaleza – Completed technical education – Monthly income: R$ 7,000-8,000
Life Stage: – Married, teenage children – Works as a telecommunications technician – Financial stability
Motorcycle Use: – Mixed use: work and leisure on weekends – Travels about 100 km during the week and 150-200 km on weekends – Motorcycle: Honda XRE 300 (2020) – Changes oil every 5,000 km or as recommended by the manufacturer
Buying Behavior: – Values quality and performance – Loyal to brands he considers reliable – Purchases from specialized stores and online – Advanced technical knowledge, does part of the maintenance himself
Personal Interests: – Motorcycle trips – Performance and technology – Regional motorcycle groups – Preventive maintenance
Challenges and Needs: – High-performance products – Engine protection in different conditions – Durability over long distances – Detailed technical information about the products.
Grupo 4: El motociclista principiante
Demographic Profile: – Male, 22 years old – Resident in Recife – College student – Monthly income: R$ 1,500-2,000 (internship + family support)
Life Stage: – Single – Engineering student – Owns first motorcycle
Motorcycle Use: – Transportation to college and for leisure – Rides about 30-40 km daily – Motorcycle: Honda Fan 160 (2023) – Strictly follows the maintenance manual
Buying Behavior: – Researches extensively before buying – Influenced by online recommendations and friends – Purchases in physical stores and e-commerce – Limited technical knowledge, in the learning phase
Personal Interests: – Technology and innovation – Economy (limited budget) – Online motorcycle communities – Learning about basic mechanics
Challenges and Needs: – Clear guidance on suitable products – Cost-benefit – Products that are easy to use/apply – Educational content on maintenance
Group 5: The Rural Motorcyclist
Demographic Profile: – Male, 42 years old – Resident in a rural area of Maranhão – Completed elementary education – Monthly income: R$2,000-2,500
Life Stage: – Married, three children – Works as a family farmer – Motorcycle is the family’s main means of transportation
Motorcycle Use: – Essential transportation for work, shopping, and family commuting – Rides unpaved roads daily – Motorcycle: Honda Bros 160 (2019) – Irregular maintenance, depending on financial availability
Buying Behavior: – Extremely price sensitive – Purchases from small local businesses – Practical technical knowledge, based on experience – Values resistant and durable products
Personal Interests: – Durability and resistance – Fuel economy – Affordable parts and products – Practical maintenance solutions
Challenges and Needs: – Products resistant to severe conditions (dust, mud) – Availability in local markets – Affordable price – Extra protection for the engine in adverse conditions
Quantification of Opportunities by Consumer Group
After defining customer groups, the next critical step is to quantify and assess the profitability of each cluster, enabling strategic analysis for decision-making. This process involves a detailed mapping of the market, considering key factors such as volume, value and profile of the products used.
Components of Quantitative Analysis
5.1 Quantitative Mapping of the Market by Customer Grouping
• Assessment of consumption volume and corresponding market value.
• Identification of growth trends and possible regional variations.
5.2 Motorcycle Profile and Oils Used
• Segmentation by lubricant viscosity (e.g.: 10W40, 5W30, etc.).
• Classification of oil types: mineral, semi-synthetic and synthetic, according to application and consumer preference.
5.3 Distribution Channels
• Identification of the main sales channels: specialized distributors, traditional retail, e-commerce and workshops.
• Analysis of the participation of each channel in the market capillarity.
5.4 Geographical Distribution
• Mapping of consumer concentration by region.
• Identification of areas with the greatest demand and growth potential.
5.5 Expected Growth Rates for Each Cluster
• Growth projections based on historical data, market trends and economic indicators.
• Assessment of the impact of technological developments in engines and new environmental regulations.
Crossover with the Brand’s Competitive Positioning
The analysis of customer groups should be carried out vis-à-vis the competitive positioning of the brand/product/company, allowing a clear mapping of opportunities and challenges. This includes:
• Comparison of the current product portfolio with the needs of the identified clusters.
• Assessment of the brand’s ability to compete in each segment.
• Identification of differentials that can maximize competitive advantage in each market.
For example, a group of customers seeking cost-benefit, durability and reliability and using motorcycles as a work tool will tend to value and prefer brands more associated with these concepts, such as Lubrax, Mobil (minerals), Honda/Yamaha original oils, while groups that value extreme performance and protection may prefer Motul, Mobil 1/Mobil Super Moto 100% Synthetic and Castrol. Repositioning a branded product requires significant investments in marketing/communication/branding, product development and distribution channels, which must be carefully weighed vis-à-vis the expected return.
Strategic Prioritization Matrix: Market Attractiveness vs. Competitive Ability
The end result of this process is a matrix of market attractiveness versus the brand/company’s ability to compete, allowing a structured view for defining priorities and allocating strategic investments.
This matrix enables objective decision-making, based on concrete data, ensuring that resources are directed to the best opportunities for growth and strengthening the brand in the lubricants market.
Segmentation Strategy for the Motorcycle Lubricants Market in Brazil
Once the most attractive target audiences have been defined, specific strategies for each identified segment can be developed.
6.1 Strategies for the Professional Segment
Product Strategy:
• Develop a specific line of lubricants for intensive use
• Formula with greater resistance to thermal degradation
• Economical packaging
• Products with protection technology for high-mileage engines
Pricing Strategy:
• Loyalty programs with progressive discounts
• Competitive prices with emphasis on cost per kilometer driven
• Promotional packages for volume purchases
Distribution Strategy:
• Strong presence in auto parts stores in peripheral neighborhoods
• Partnerships with workshops specializing in delivery motorcycles
• Availability in support centers for app delivery drivers
Communication Strategy:
• Messages focused on economy and durability
• Testimonials from other professional motorcyclists
• Educational content on how to maximize engine life
• Presence in WhatsApp groups and motorcycle courier associations
6.2 Strategies for the Urban Segment
Product strategy:
• Premium lubricants with low environmental impact formulas
• Modern and practical packaging
• Products with advanced cleaning technology for urban use
• Complete maintenance kits (oil + filter)
Pricing Strategy
• Premium positioning with emphasis on added value
• Subscription programs for periodic exchange
• Exclusive benefits for loyal customers
Distribution Strategy:
• Strong presence in dealerships and specialized stores
• E-commerce with fast delivery
• Oil change services at home
Communication Strategy:
• Messaging focused on convenience and quality
• Targeted digital marketing on platforms like Instagram
• Partnerships with influencers and female motorcyclist groups
• Emphasis on sustainability and environmental responsibility
6.3 Strategies for the Experienced Segment
Product Strategy:
• High-performance lubricant line
• Specific products for different conditions (city/highway)
• Advanced formulas with special additives
• Detailed technical information on the labels
Pricing Strategy:
• Premium positioning justified by technical benefits
• Loyalty programs with exclusive benefits
• Satisfaction guarantee
Distribution Strategy:
• Specialized stores and e-commerce
• Presence at motorcyclist events and meetings
• Partnerships with motorcyclist clubs and associations
Communication Strategy:
• Conteúdo técnico aprofundado
• Comparativos de desempenho com dados comprovados
• Patrocínio de eventos regionais de motociclismo
• Aplicativo com dicas de manutenção e lembretes de troca
6.4 Strategies for the Beginner Segment
Product strategy:
• Entry-level products with reliable quality
• Packaging with clear application instructions
• Lubricants compatible with the most popular beginner bikes
Pricing Strategy:
• Affordable prices with good value for money
• Seasonal promotions (back to school, holidays)
• First-time purchase discounts
Distribution Strategy:
• E-commerce with educational content
• Presence in department stores and supermarkets
• Partnerships with driving schools and dealerships
Communication Strategy:
• Educational content on basic maintenance
• Video tutorials on oil changes
• Active presence on forums and social media groups
• Simple and accessible language
6.5 Strategies for the Rural Segment
Product strategy:
• Lubricants with greater resistance to severe conditions
• Formulas with extra protection against dust and moisture
• Resistant and reusable packaging
• Multifunctional products (engine and transmission)
Pricing Strategy:
• Competitive prices with a focus on durability
• Economical packaging for lower cost per application
• Seasonal promotions aligned with the agricultural calendar
Distribution Strategy:
• Presence in agricultural stores and local markets
• Distributors in small towns
• Itinerant salespeople for remote areas
Communication Strategy:
• Simple and direct language
• Local radio and posters in rural businesses
• Practical demonstrations at fairs and regional events
• Testimonials from other local users
Cross-Segmentation Strategies
Además de estrategias específicas para cada segmento, algunos enfoques transversales pueden mejorar los resultados:
7.1 Digital Segmentation
• Use online behavior data to personalize offers
• Develop content specific to each user profile
• Implement interest-based remarketing strategies
7.2 Smart Geographic Segmentation
• Adapt products and communication to regional characteristics
• Consider climate and infrastructure conditions in each region
• Develop local campaigns for regions with a high concentration of motorcycles
7.3 Segmentation by Product Life Cycle
• Specific strategies for first purchase, repurchase and loyalty
• Upgrade programs for users of basic products
• Differentiated communication for different stages of relationship with the brand
7.4 Channel Segmentation
• Personalized experiences across different touchpoints
• Unique offers by channel (online vs. offline)
• Omnichannel integration with customer profile recognition
Conclusion
Market segmentation is a fundamental strategic tool for companies that want to stand out in competitive markets such as motorcycle lubricants in Brazil. By deeply understanding the different consumer profiles, their needs, behaviors and preferences, companies can develop more effective and targeted strategies.
The Brazilian motorcycle market, with its 34.2 million registered vehicles and a circulating fleet of over 17 million and distinct regional characteristics, offers fertile ground for segmentation strategies. The five customer groups covered in this article – professional, urban, experienced, beginner and rural – represent representative but non-exhaustive segments of this market, each with specific needs and behaviors.
For each segment, customized product, price, distribution and communication strategies can be developed, maximizing the relevance of the offer and the efficiency of marketing resources. Additionally, cross-cutting digital, geographic, lifecycle and channel segmentation strategies can further enhance results. Defining which segments to target and how to position oneself requires an in-depth strategic economic assessment.
Successful implementation of these strategies requires an organizational commitment to segmentation, adequate resources, coordinated execution and ongoing measurement of results. With this approach, companies in the motorcycle lubricants sector can not only increase their market share and profitability, but also build stronger and more lasting relationships with their customers.
