EnvironmenTire

Our Story

TNML Inc. is a company that started in 2020 by four passionate undergraduate Commerce students looking for a way to change the world. We want to demonstrate that reducing and reusing waste to make products that are beneficial to both the consumer and environment, is possible. That is why our mission at TNML is  “to restore the environment in ways that are valuable to people and the planet.” 

EnvironmenTire is not only a product that you can feel good about buying, but it is also a high-quality tire that will be sure to make one’s cycling experience enjoyable. Our tires are the ideal fit for any road bike, whether you are cycling to work or taking a leisurely ride with friends. The tire is made with 100% natural recycled rubber, which allows for excellent tensile strength, creating a longer-lasting tire (VCBS, 2020). We offer various sizing for the tire width so that our customers can find their greatest balance of comfort and grip, in order to create the optimal cycling experience. See Figure 2 for the various dimensions we offer for EnvironmenTire. Each tire comes with a one year warranty, where we will receive the damaged tire and repair it for no cost to the consumer. Additionally, for each tire sold, 5% of the profits will go towards an organization, ‘Forest Trends,’ where they will purchase land in Vietnam, to ensure that it is protected and free from monocropping and/or artificial farming, allowing the land to thrive organically. See Figure 1 to see the product design. 

These are the various dimensions we offer for EnvironmenTire. There are three different widths, and two different diameter sizes. For consumers unsure of which width and diameter to choose, we recommend the 25mm with 700cc as it the most popular option among road cyclists (Western Bike Works, 2020). 

Cycling has become an integral part of many peoples’ daily routines in British Columbia (B.C.) (Government of British Columbia, 2020). The government of British Columbia has invested a substantial amount of time, money and effort to implement protected bicycle lanes throughout the province to ensure safety, promote green transportation and encourage cycling among the population (Government of British Columbia, 2020). This infrastructure has incentivized 2.6 million B.C. residents to ride their bicycle more as they feel protected from traffic (British Columbia Cycling Coalition, 2018). The increased cycling population allows for an even larger target market. Sustainable shopping practices have also become a part of the population’s daily routine. Consumers in this geographical region are willing to pay a higher price for products that are environmentally friendly, and ethically/sustainably produced (PWC, 2019), because it fits with their values. 

According to the fourth edition of MKTG, there are five different areas of segmentation that one should look at when considering their target market in terms of the demographic variable: age, gender, income, ethnicity and family life-cycle (Lamb et. al, 2018).

The age demographic for EnvironmenTire has a large range, as there are various age demographics found in the bicycle market. The main ages that will be focused on are adults aged from 18 to 55, which includes Generation X, Generation Y and Millennials. This is because 95% of the population in B.C. that ride bicycles are between the ages of 18 to 55, with the 31 to 40 years old being the highest (BC Bike Show, 2020). The population in 2020 for this age range is 2,169,680 which is 47% of the population in B.C. (Statistics Canada, 2016). This age demographic, specifically in this geographic segment, is also very aware and conscious about environmental issues (Coughlin, 2018). Purchasing products that support environmental initiatives are becoming a focus in these consumers’ decisions, so it is essential to meet their want and need for sustainability (PWC, 2019). Approximately 79% of cyclists in British Columbia use cycling as their main mode of transportation because it is sustainable and better for the environment  (Statistics Canada, 2016).

It is possible that this data is skewed more towards men because the data does not include the statistics from those who consider themselves ‘other,’ so the proportion of men to women/‘other’ may not be accurate.   

For residents in British Columbia, the mode for household income is between $60,000 to $99,000, making up 25% of this population (Statistics Canada, 2016). In Vancouver and Vancouver Island, 23.9% of household income is between $60,000 to $99,000, 17.9% between $100,000 to $149,000 and 16.7% with $150,000, giving a total household income average of $72,000, for 58.5% of this population (Statistics Canada, 2016). This tells us that the population in this demographic is considered to be middle-class or have high disposable-income, which means they have greater buying power than those of lower-income (Lamb et. al, 2018). However, 65% of the 41.5% that are considered to be of lower-income are willing to pay a premium price for a product that is sold locally or supports environmental causes (Statistics Canada, 2018; PWC, 2019).

EnvironmenTire does not segment their market according to ethnicity. There are no specific statistics, in Canada, relating to trends between ethnicity, and cycling and/or the environment. 

To recall, the age demographic for EnvironmenTire is 18-55, which means that according to the FLC, people in this market can be young, middle-aged, married, divorced, or have children (Lamb et. al, 2018). In Vancouver and Vancouver island, 43% of the population are single, 49% are married and 39% are a census family with children. The middle-aged population, while they are likely at a better financial position, they are hard to influence with advertising, but are more likely to purchase products that fit with their values (Lamb et. al, 2018). Consumers who are young, single or married, with or without children are interested in new products and have the highest purchase rate (Lamb et. al, 2018). In British Columbia, these consumers are interested in purchasing sustainable products, where 71% want ethical and environmentally friendly products and 61% want the product to connect with a social issue (Keeble, 2013). Adults, young and middle-aged, who purchase products that fit their needs are likely to purchase it for their children as well (Marketing Charts, 2019), which can allow the target market to not be limited by those in the specified age range, but their children as well.