ti cycles final
TRANSCRIPT
![Page 1: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/1.jpg)
Tube Investment (TI) CYCLES-New Product Strategy
BY-GROUP 3
![Page 2: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/2.jpg)
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
![Page 3: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/3.jpg)
Two Categories of Bicycles
Standard Category Bike
Special Category Bike
![Page 4: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/4.jpg)
Market Scenario in1990’s
➡ Distinctive Range: Standards and Specials
➡ Marketing television and sports events
➡ Early 1997, 993 dealers, aimed at towns with population more than 1lakh
➡ Dealers receive cycles in ckd (complete knock down)
➡ Standard cycles lost markets slowly
![Page 5: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/5.jpg)
![Page 6: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/6.jpg)
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
![Page 7: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/7.jpg)
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
![Page 8: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/8.jpg)
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
![Page 9: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/9.jpg)
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
![Page 10: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/10.jpg)
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
![Page 11: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/11.jpg)
New Product Dilemma• 15 models in last 3 years‣ 1 Standard‣ 14 special
• Product ideas & concepts were generated through industry, company & competitors obtained from various sources.
• Team of managers from PM, PD, manufacturing & purchase under guidance of GM(marketing), VP.
• TI cycles uses 3 approaches‣ Product design‣ Prototypes‣ Product test
![Page 12: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/12.jpg)
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
![Page 13: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/13.jpg)
THE SIMULATED RESEARCH• Sample size– 300
•Different classes were made on the basis of classes in which studying, intending to buy what, monthly family income up to 5000/- and 5001/-, central campus was selected.
Steps
Forming panels
Get detailed perceptions
Get responses
![Page 14: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/14.jpg)
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
![Page 15: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/15.jpg)
GET RESPONSES
Display area
Identification
RidingMake a choice, Reason
![Page 16: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/16.jpg)
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
![Page 17: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/17.jpg)
Strategic Implication
Short term:
• Brand positioning in existing market and product group
Long term:
• Expansion of market and get into more demanding products
![Page 18: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/18.jpg)
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
![Page 19: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/19.jpg)
…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
![Page 20: Ti Cycles Final](https://reader036.vdocuments.site/reader036/viewer/2022081413/5476d7a0b4af9f98798b4572/html5/thumbnails/20.jpg)