TI Cycles Analysis

Done by,AbhinavHemanthDhruvAnujNishantVaaniShruthiVineeshaPratyushSuprotim

STRENGTHS WEAKNESS

• Leadership position in ‘Specials’ segment• Good brand value• Rich experience in cycle industry• Ability to produce international quality products• Large variety of products for different segments

• Preference for two wheelers• Cheap variants from China• Indian bicycle market has stagnated• Volatility of input prices• Import restrictions in European Union

• Increase the market penetration in domestic products

• Rising health awareness among consumers• Increasing environment concerns among

consumers

• Inability to reduce input costs• Unable to produce high end cycles for western

markets• Dominance only in the southern region• Decrease in exports• High inventory holding

OPPORTUNITIES THREATS

Market SegmentationAge• <12 – Cycles with colour ful themes and safety features.• 13-19( Teenagers) - Cycles that look stylish, which come with differentiated features.• 20+ Geared cycles for cycles enthusiast and daily cycle users. Income• Upper : High end cycles for sports and leisure.• Middle: Durable geared cycles for daily/occasional use.• Lower: They want cheap and durable cycles. Lifestyle• Sports oriented – Want cycle only for sportive purposes.• Daily user – Use cycle as a means of transportation ( workers, students)

Region• Rural – Cheap and durable cycles for daily use• Semi urban – Cheap and durable cycle, but open trying out moderate prices cycles• Cities – Mostly used by students (teenagers) and cycle enthusiast. Do not mind paying premium price for quality.

Strategies

Higher variety, especially of premium bikes. Products based on customer need. Promoting "Cycling" as a concept - leisure, fitness, fun and recreation. Cost competitiveness Development of lower cost models Focus on enhancing quality of key components i.e. spare parts etc.. Promotional activities for market activation Development of models meeting price value expectation Strategic alliance with educational institutions Identifying cycles as a ‘cool’ thing

Market challenger, follower or niche?• Market leader in specials segment• Even in standards segment they are in a comparable position with

competitors (Avon)• TI Cycles targets a large variety of customers and not a particular

segment. • They also cater to different regions like rural urban as well as various

income groups. • They are also challenging the market leaders, Hero Cycles, by

providing Specials segment products.• Hence, they are market challengers.