Ti Cycles Final
Ti Cycles Final
Ti Cycles Final
BY-GROUP 3
COMPANY BACKGROUND
TI Cycles of India (a Unit of Tube Investments of India Ltd.) is one of the leading bicycle manufacturers in India Started in 1949 by the Murugappa Group and Sir Ivan Stedeford of Tube Investments Group in UK The maker of the country's most famous cycle brands like Hercules, BSA and Philips cycles BSA: style and looks, hercules: strength and toughness BSA: 40% volume and 50% profit hercules: remaining Currently the first largest manufacturer in India and number one manufacturer in special segments like Mountain bikes, Sports Lite Roadsters, Racing bikes etc It has manufacturing capacity of around three million bicycles per year
OPPORTUNITIES Internet/Mobile introduces new avenues to customer. This can save costs of dealerships New markets in India (geared bikes) Entry into the lower cost bicycle market may add to market share Customization of the product Market penetration in tier ii, tier iii cities and rural market
SWOT Analysis
STRENGTHS
Strong Financial Support from group Capability to adsorb foreign technologies- no restrictions Brand name awareness Known as a high-performance leader in the bicycle industry
WEAKNESS Unable to reduce cost price No balanced focus on domestic and export markets Product innovations are few Unable to penetrate into rural market No new market tapping(North) No good rapport with customers/dealers Research and Development capabilities
THREATS The popularity of less expensive substitute products (Scooty) More competitors entering the market(China, Taiwan) Shift of demand for higher priced to lower priced bicycles Unsure trends in the bicycle industry
PROBLEMS FACED
Lack of access to complementary assets Matured marked Inferior manufacturing capabilities Gap in distribution network & Dealers are not well equipped Dealers intending more towards Special category The idea of specialised distribution CYCLINICS constrained to large towns & that to in less number No substitute for better training for dealers Inaccuracy in data-collection and future analysis
The Decision
The launch of geared bicycles in India Popular brands that were fitted with gears imported from Shimano Japan, were: Hercules Univers BSA Easybird BSA Dirtgrinder
Forming panels
Steps
RESEARCH METHODOLOGY
List of students, their age, class studying in, intention to buy a bike in next 3/6 months, top choice of brand, and current brand own etc Next, home interviews were conducted with parents for verification and invitations to the central campus Questionnaire was prepared
GET RESPONSES
Display area
Identification
Riding
Feedback Procedure
Price sensitivity of the respondents
Perceptions of 1st, 2nd choices of each test brands through detailed probing questions
Respondents were asked to provide a few infos as income class, sporty or studious, modernity and liking/empathy
Strategic Implication
Short term:
Brand positioning in existing market and product group
Long term:
Expansion of market and get into more demanding products
Recommendations
Involving the manufacturing dept. in product design stage, hence improve time to market Analyze customer complaints through cross functional teams and timely review of the complaints This will provide useful inputs for product design and even process change Simultaneous focus on price and quality Focus on manufacturing process through Outsourcing Synergies in the production of standard
continued
Working more closely with dealers and vendors- relation building for better inflow of infos from customers and consumers Significant up gradation of product development and manufacturing process- innovation Design changes, prices and speed to market are critical for maintaining competitiveness In the long run, synergies between domestic and export market The ultimate decision for the company, that we derived is that the company should launch all the three bicycles together