/ 26

Share

Related

More

BicyleHYPERLINK "http://www.slideshare.net/ankitag9/bicyle-industry" industryHYPERLINK

"http://www.slideshare.net/ankitag9/bicyle-industry"4306 views

Marketing Strategy of Hero cyclesHYPERLINK "http://www.slideshare.net/joshuafinny1/marketingstrategy-of-hero-cycles"2787 views

Hero Cycle StrategyHYPERLINK "http://www.slideshare.net/santhoshmadheswaran/hero-cycle32480207"868 views

cycle industryHYPERLINK "http://www.slideshare.net/vikrampassy/cycle-industry"887 views

Marketing Project on Hybrid Bicycles in INDIAHYPERLINK

"http://www.slideshare.net/SindoorNaik1/marketing-project-hybridbicycles"202 views

Analysis of case hero cycleHYPERLINK "http://www.slideshare.net/MohitMalviya/analysis-of-case-herocycle"3352 views

Economic Benefits of BicyclingHYPERLINK "http://www.slideshare.net/jocelynbergh/economic-benefitsof-bicycling"3046 views

An Economic Analysis Of The Bamboo Bicycle Industry By Heath Cox HYPERLINK

"http://www.slideshare.net/heathscox/an-economic-analysis-of-the-bamboo-bicycle-industry-by-heath-cox"11840 views

Ti cycle industry report cycle trend in indiaHYPERLINK "http://www.slideshare.net/bhagyesh2000/ticycle-industry-report-cycle-trend-in-india"319 views

Hero HYPERLINK "http://www.slideshare.net/ambuj2020/hero-motocorpsaaa"motoHYPERLINK "http://www.slideshare.net/ambuj2020/hero-moto-corpsaaa" corps.aaaHYPERLINK

"http://www.slideshare.net/ambuj2020/hero-moto-corpsaaa"1954 views

Public Bicycle Scheme in IndiaHYPERLINK "http://www.slideshare.net/jaaaspal/public-bicycle-scheme-inindia"3818 views

Bike rental shopHYPERLINK "http://www.slideshare.net/Roth020292/bike-rental-shop"718 views

Bike SegmentationHYPERLINK "http://www.slideshare.net/amwiese/bike-segmentationpresentation"8041 views

Bicycle Master Plan - Bicycle Boulevard Project - City of AustinHYPERLINK

"http://www.slideshare.net/bangthetableclients/bicycle-master-plan-bicycle-boulevard-project-city-of-austin"1732 views

Business plan bikes pointHYPERLINK "http://www.slideshare.net/naveen13safare/business-plan-bikespoint"1158 views

Sustainable planning through introduction of bicycle facilities in HYPERLINK

"http://www.slideshare.net/aruntheacb/sustainable-planning-through-introduction-of-bicycle-facilities-in-indiancities"indianHYPERLINK "http://www.slideshare.net/aruntheacb/sustainable-planning-through-introduction-of-bicyclefacilities-in-indian-cities" citiesHYPERLINK "http://www.slideshare.net/aruntheacb/sustainable-planning-through-introduction-ofbicycle-facilities-in-indian-cities"740 views

Hike HYPERLINK "http://www.slideshare.net/11903556x/hike-bike-hk-marketingplan"&HYPERLINK "http://www.slideshare.net/11903556x/hike-bike-hk-marketing-plan" Bike HK Marketing

PlanHYPERLINK "http://www.slideshare.net/11903556x/hike-bike-hk-marketing-plan"1021 views

Hero CycleHYPERLINK "http://www.slideshare.net/msdukecairo/hero-cycle-3655433"17969 views

Business Plan Multi Purpose BicyclesHYPERLINK "http://www.slideshare.net/tkjainbkn/business-planmulti-purpose-bicycles-2927626"933 views

Comprehensive Bicycle Plan for PuneHYPERLINK "http://www.slideshare.net/rgadgi/comprehensivebicycle-plan-for-pune"204 views

GUIDEBOOK: 10 Relevant Insights to Ecommerce SuccessHYPERLINK

"http://www.slideshare.net/Znode/znode-retail-guidebook"890 views

History of BicycleHYPERLINK "http://www.slideshare.net/monsadako/history-of-bicycle"3215 views

Why HYPERLINK "http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indianmarket"yoHYPERLINK "http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market" HYPERLINK

"http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market"bykesHYPERLINK
"http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market" failed in a HYPERLINK
"http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market"indianHYPERLINK
"http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market" marketHYPERLINK
"http://www.slideshare.net/yogeshchevale/why-yo-bykes-failed-in-a-indian-market"12186 views

Mobile Commerce for Retailers WebinarHYPERLINK "http://www.slideshare.net/embitel1/6mobilecommerceforretailerswebinar"1449 views

BeginingHYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-and-mysqlecommerce-by-chayon-shaah-professional-web-developer-of-bangladesh" HYPERLINK

"http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaah-professional-web-developer-ofbangladesh"phpHYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaahprofessional-web-developer-of-bangladesh" and HYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-andmysql-ecommerce-by-chayon-shaah-professional-web-developer-of-bangladesh"mysqlHYPERLINK

"http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaah-professional-web-developer-ofbangladesh" ecommerce by HYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-bychayon-shaah-professional-web-developer-of-bangladesh"chayonHYPERLINK

"http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaah-professional-web-developer-ofbangladesh" HYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaahprofessional-web-developer-of-bangladesh"shaahHYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-andmysql-ecommerce-by-chayon-shaah-professional-web-developer-of-bangladesh" (professional web developer
ofHYPERLINK "http://www.slideshare.net/chayonshaah/begining-php-and-mysql-ecommerce-by-chayon-shaah-professional-webdeveloper-of-bangladesh"38626 views

Marketing research project on electric bikeHYPERLINK

"http://www.slideshare.net/hemanthcrpatna/marketing-research-project-on-electric-bike"10577 views

BicycleHYPERLINK "http://www.slideshare.net/ashutoshgupta9275/bicycle-26119477"336 views

STRATEGI
DISTRIBUSIHYPERLINK "http://www.slideshare.net/abeyow/strategi-distribusi"47430 views

Product Market Analysis - MotorcycleHYPERLINK "http://www.slideshare.net/pradipmondal/productmarketanalysis-motorcyclepresentation"3357 views

If not now, when? Prospects for a cycling revolution in 2012/13HYPERLINK

"http://www.slideshare.net/liveablelondon/if-not-now-when-prospects-for-a-cycling-revolution-in-201213"5210 views

Cycles and CyclingHYPERLINK "http://www.slideshare.net/malanideepak/cycles-and-cycling"686 views

Building an emotional connection with specialized bicycles, thrubis HYPERLINK

"http://www.slideshare.net/athrubis23/building-an-emotional-connection-with-specialized-bicycles-thrubis"266 views

Track n trailHYPERLINK "http://www.slideshare.net/rajalingamr/track-n-trail-8328047"1130 views

50 Amazing BicyclesHYPERLINK "http://www.slideshare.net/ajmitchell/50-amazing-bicyclespresentation"7699 views

Guideline for writing a Bicycle Master PlanHYPERLINK

"http://www.slideshare.net/herberttiemens/guideline-for-writing-a-bicycle-masterplan"212 views

Summer trainingHYPERLINK "http://www.slideshare.net/jasdeepchawla/summer-training5347142"1686 views

Bicycle PowerPoint TemplateHYPERLINK "http://www.slideshare.net/indezine_powerpoint/bicycle01"3706 views

Changes of Perception - Bicycle Culture in ChinaHYPERLINK

"http://www.slideshare.net/inesbike/changes-of-perception-bicycle-culture-in-china-2821506"11368 views

Perspectives on China's economic growthHYPERLINK

"http://www.slideshare.net/NewEconomicSchool/perspectives-on-chinas-economic-growth"4077 views

HYPERLINK "http://www.slideshare.net/andrey_travin/travin-conf-imetrics"
HYPERLINK "http://www.slideshare.net/andrey_travin/travin-conf-imetrics"HYPERLINK
"http://www.slideshare.net/andrey_travin/travin-conf-imetrics" HYPERLINK
"http://www.slideshare.net/andrey_travin/travin-conf-imetrics"HYPERLINK

"http://www.slideshare.net/andrey_travin/travin-conf-imetrics" HYPERLINK "http://www.slideshare.net/andrey_travin/travinconf-imetrics"HYPERLINK "http://www.slideshare.net/andrey_travin/travin-conf-imetrics"HYPERLINK

"http://www.slideshare.net/andrey_travin/travin-conf-imetrics"5670 views

Busness plan, bicycle retailing

Follow

by Mustahid Ali , student at universal business school

on Apr 01, 2014
inShare

1,407views

whole business plan of bicycle retail store, how to start a new cycle retail store with target market, start up cost, financial plan.
Show more

No comments yet
1 Like

Subscribe to commentsPostHYPERLINK
"http://www.slideshare.net/signup?login_source=slideview.popup.comment&from=comments&from_source=http%
3A%2F%2Fwww.slideshare.net%2Fmustahidali90%2Fbusness-plan-bicycle-retailing" Comment

Busness plan, bicycle retailingDocument Transcript

1. Rtl Cycl Mustahid Ali MBA 3, 1334 Instructor: Prof. Bibhas Basumatray Universal Business
School, Karjat By Business Plan Generation Model E-Strat Project All in one BYCYCLE RETAIL
STORE

2. Rtl Cycl All in one RETAIL BICYCLE STORE 1 Acknowledgement I have taken efforts in this
project. However, it would not have been possible without the kind support and help of many
individuals. I would like to extend my sincere thanks to all of them. I am highly indebted to Professor
Bibhas for their guidance and constant supervision as well as for providing necessary information
regarding the project & also for their support in completing the project. I would like to express my
gratitude towards my siblings for their kind co-operation and encouragement which help me in
completion of this project. My thanks and appreciations also go to my colleague in developing the
project and people who have willingly helped me out with their abilities.
3. Rtl Cycl All in one RETAIL BICYCLE STORE 2 Table of contents Particulars Page No. Executive
Summary . 3 1. Objective
4 2.1. Start-up Summary
. 4 2.2. Start-up Requirement
.. 5 3. Company Location And Facilities
. 6 4. Products and Services
. 6 5.1. Market Analysis Summary
. 8 5.2. Porters Analysis

.. 8 5.3. Swot Analysis

. 10 5.4. Market Segmentation
. 11 6.1. Competitor Analysis
. 13 6.2. Competitive Comparison
. 13 7. Marketing Strategy
. 14 8. Marketing Mix
. 14 9. Pricing Strategy
. 18 10. Sales Strategy
. 19 11. Business Model Canvas
. 20 12. Financial Plan
. 22 12.1. P&L A/C for 3 years
. 23 13. Action Plan
. 24 References
. 25
4. Rtl Cycl All in one RETAIL BICYCLE STORE 3 Executive Summary Indian Bicycle Industry is
very large with India producing almost 10% of total Bicycle production of the world and exporting
around RS200 million of it. Out of the complete sales of bicycle, around 13% is constituted by the
kids segment with CAGR (Compounded Annual Growth Rate) of around 20%. With many brands
present in the bicycle industry, a new approach towards marketing is needed and also to penetrate
competitive market cost competitiveness is required. The kids segment of bicycle is mostly
unorganized with very few companies focussing on this quickly growing and lucrative section. Most
of the parents who have higher purchasing power and less time to spend with their kids are mostly
looking towards buying things online. This provides a good opportunity to provide various designs of
hi quality kids bicycles online for the parents to buy and free them off of going to the market
themselves as free home delivery is provided by the company. Also since many of the kids are very
choosy and would like to customize the cycle with various models, designs and also different
accessories, the online portal will provide a platform for the various people to come and select their
unique cycle in terms of colour and accessories. Currently in the marketplace, a prospective
customer usually goes out on their own to hunt for a bicycle either for themselves or for the kids.
This usually involves dedicating some time and energy along with the money spent in transportation
to and from the market and home respectively. Also transportation of the cycle to home is also a
major problem. But with home delivery of the cycle along with customization of accessories and an
option of Cash On Delivery with almost the same price as that with the retailer, this service provides
an additional value that customer can drive out of the company. Although the online e-portal is a
good way to enter the marketplace, the bulk sales in the beginning will have to be made by the
retailers dealer network where both a discount and a credit period will have to be provided to the
retailer to promote the sales. But in the long run it not only creates a valuable dealer network but
also a loyal direct sales network with benefit of both the models. This report explains the business
plan for launching a bicycle retail shop name as Rtl Cycl I have chosen bisociation technique
(bicycle and retailing). To knowing the target customers I have used segmentation and targeting .I
have also tried to find out its competitors. I have also paid special attention to the price, product,
place, promotion and its design. I have also decided how to promote it and where.
5. Rtl Cycl All in one RETAIL BICYCLE STORE 4 1. Objectives The objectives of this business plan
are: 1. Continue to provide the high quality of sales and services. 2. Manage a seamless transfer of
ownership. 3. Maintain a financially healthy business and validate the trust and advocacy of other
people in support of this business purchase. 4. Repay the start-up loan provided by family members
within the first year. 5. Achieve monthly and yearly sales equal to or better than the previous year
under the former owner. 6. Aim to improve sales of bicycle specific garments and rainwear over the
year. 7. Focus marketing on new student influx to maintain current growth in sales and service
revenue. 2.1 Start-up Summary The price existing store fixtures, tools, and mobile leasehold
improvements. These included bicycle wall racks, display cases, track lighting, repair and assembly
tools, supply cabinets and storage shelving, air compressor, etc., and are part of the purchase price.
Inventory, accounts payable, and invoices were tracked for five months to determine an accurate

price of current inventory and amounts of accounts payable assumed. We are investing some of our
own money, partially a home equity loan, in the company. An additional amount is being invested, as
short-term interest free loans, by family members. This plan calls for these loans to be repaid in the
first year.
6. Rtl Cycl All in one RETAIL BICYCLE STORE 5 2.2 Start-up Requirements Start-up Expenses (In
Rupees) Legal 96000 Stationery 15000 Promotional Materials 18000 Consultants 48000 Insurance
21000 Down Payment 600000 Total Start-up Expenses 798000 Start-up Assets Cash Required
5500000 Start-up Inventory 1020000 Other Current Assets 480000 Total Assets 5000000 Total
Requirements 13596000
7. Rtl Cycl All in one RETAIL BICYCLE STORE 6 3. COMPANY LOCATIONS AND FACILITIES
Rtl Cycl will be going to locate in Chandigarh, and also in other metropolitans cities. Outdoor
recreation is very popular in the area; there are bicycle friendly country roads leading to parks and
lakes, as well as an extensive array of mountain biking trails for the more adventurous. The store is
2,000 sq. ft. of interior space with covered outside space adjacent to the heavily trafficked sidewalk.
Used bicycles are displayed in this space. One or two new bikes are displayed as well as a visual
draw. All are secured with lock and cable. As a service to all cyclists, a hose from the air compressor
and a pressure gauge are present under the overhang next to the sidewalk. This primes the pump
for quite a bit of spontaneous walk-in business. 4. PRODUCTS AND SERVICES 4.1. Retail Sales 1.
Bicycles. We sell new bicycles, predominantly in the mountain bike style, retro-cruiser is a close
second, and sport/touring/racing road bikes a distant third. We also sell some used bikes which we
take in on trade as a service to our customers who are buying new bikes. 2. Accessories. We offer a
wide variety of accessories. Locks, computer speedometers, fenders, cargo racks, comfortable
seats, headlights, helmets, water bottles, panniers/back packs/messenger bags, child seats and
trailers, bike storage racks, and auto roof rack systems all fall in this category. It is not possible to
carry every possible accessory, so we try to carefully choose those which will be most useful or
desired by our target markets. When we receive special requests for a new item, we'll often order
several to test the local demand, and if adequate, will add it to our regular stock. 3. Clothing.
Clothing appeals to all cyclists, whether it is a logo emblazoned T-shirt or a piece of waterproof
rainwear. We rotate our clothing based on the season. Just before the autumn rains we stock jackets
and Gore-Tex. Come winter we offer helmet covers and liners, insulated jerseys and pants, gloves,
and shoe covers. And when spring arrives and the first crocus appears through the melting snow, we
start displaying summer jerseys, and racing shorts. 4. Parts. Parts generally refers to pieces or
materials necessary to the basic functioning of the bicycle. Generally, parts are installed during
service and are an additional charge beyond
8. Custom wheel building. 4.3. Future Products And Services The bicycle industry is a mix of old
and new technologies. Frame sets are made of various lightweight materials: T-6 aluminium, 4130
chromium-molybdenum steel, titanium, and/or carbon fibre matrix mixes. And yet the drive train is
still a linked chain moving over cog gears, on axles supported by ball bearings. Wheels can be
anything from wire spokes to aerodynamic discs. Clothes range from high-tech moisture wicking
synthetic fibre jerseys and Gore-Tex rainwear to traditional wool or cotton shorts. Each year the
major component companies such as Shimano, Mavic, and Campanology introduce new parts
groups. The marketing has become as strident as that of the automobile industry. This means that
the bike shop must maintain replacement parts to repair old groups, stock parts for early
replacements of new models, and have an inventory of high priced groups for the equipmentfocused bike nobs who want to upgrade their bikes with the newest and greatest. Additionally, the
shop must regularly order manuals and specialty tools to service the new bikes and components.
Authorized warranty repairs on the bikes. Installation of all accessories. Scheduled tune-ups,
replacement of all bearing surfaces, repacking of lubricants, and adjustments of derailleurs and
brake systems. Quick repairs for flat tires, broken chains, brake cables, etc. Free 30-day/100-mile
tune up with every new bike sold. Rtl Cycl All in one RETAIL BICYCLE STORE 7 the service fees.
Some, like crank sets, pedals, tires, derailleurs or brakes, are both integral parts and upgrade
accessories. Others, such as headsets, bottom brackets, spokes, chains, cables, and cable
housings are strictly maintenance, though some will be sold to cyclists who prefer to work on their

bikes themselves. 4.2. Service Rtl Cycl is a full-service specialized bicycle shop. Our service
offering includes, but is not limited to:
9. Rtl Cycl All in one RETAIL BICYCLE STORE 8 Following the trends in technology and futuristic
products is as much fun as it is work for Hub and his staff. They work on bicycles because they love
bicycling. 5.1. MARKET ANALYSIS SUMMARY The predominant market segment for Rtl Cycl is
the university student population, sport person, adventures population, kids. We also cater to the
university staff, local business employees, and, along with every other bicycle shop in town, the
greater Metro population. In part the local market is driven by the lack of parking. Bicycle
transportation is more economical, as well as time and space efficient in the university
neighbourhood. Part of the market is price constrained and another part is hooked on the latest fad,
be it frame style, number of gears, or portrayed image. As long as new students arrive each year at
the small metro city, our market segment growth is assured. 5.2 PORTERS ANALYSIS FOR
BICYCLE INDUSTRY
10. Rtl Cycl All in one RETAIL BICYCLE STORE 9 Rivalry among Existing Competitors Main
competitors include Hero Cycles, Firefox, Atlas Cycles It has long history and established
significant market size Increasing rivalry expected as more firms enter the attractive market (both
domestic and foreign import). Threat of New Entrants Expectation of long term demand for bicycles
for kids segment remain strong However, increased competition into the market from imports from
the China makes it less profitable for new entrants Threat of Substitutes Kids Bicycles are common
and range in prices Different styles and makes are widely available through many outlets
Alternative recreational equipment widely available Bargaining Power of Buyers Buyers demand
depends on discretionary income for recreational equipment Variety of distribution channels
Higher income households comprises a major portion of the market Buyers demand depends on
level of real disposable income and health of household Bargaining Power of Suppliers Primary
Assembly unit is located in Ludhiana so the supplies of raw materials in assembling the cycles take
less time.
11. Rtl Cycl All in one RETAIL BICYCLE STORE 10 5.3 SWOT ANALYSIS Strengths The Indian
bicycle industry is almost entirely self-sufficient, with more than 95% of bicycle components supplied
from domestic sources. It also obtains most of its raw materials, such as steel tubes, from within the
country. It concentrates on producing a simple, cheap, and rather old- fashioned roadster model.
The could be seen as a deliberate attempt to satisfy the basic transportation needs of the less
affluent segment of the population. The industry is capable of producing roadster model at highly
competitive Price. It has made minimal use of foreign technology, creating or adapting most of the
technology it employs and emphasizing labour- intensive production techniques. Although it
procures a substantial volume of its components from a large number of small producers, final
production is strongly concentrated. More than 90% of its exports are directed towards other
developing countries where the basic transportation needs of large numbers of less affluent people
are far from being satisfied. Weaknesses The Indian share in the global bicycle business is around
one percent, this too is in the low cost and low quality products. For producing higher end bicycle for
global and domestic market, there is need for overall improvement in vendor base as well as in the
basic infrastructure and resolution of logistic issues. The Indian Industry, however, recognizes that
the quality of its bicycles has to be improved in order to increase its competitiveness in foreign
markets. Upgradation of technology and quality has to b3 built in every part, every dimension of
bicycle within this context, opportunities for foreign collaboration exists, although mainly for the
production of certain types of components.
12. Rtl Cycl All in one RETAIL BICYCLE STORE 11 Opportunities Enormous potential to operate in
a global market, though challenges of quality, cost delivery are equally large. Germany will source its
tyre requirements for global market from Metro Tyres in Ludhiana. Many of the Cycle entrepreneurs
are aware or the emerging global challenges and are in the process of leveraging and upgrading
their units by undertaking value addition, instituting cost cutting measures and setting up websites.
The United Cycle & Parts Manufacturing Association (UCPMA) is organizing a virtual exhibition on
Internet as a part of its upgradation mission. The online exhibition will also feather a virtual buyerseller meet. Threats Increased competition from foreign producers especially China, which competes

on the basis of lower costs of production. Fluctuating demands as a result of economical changes.
The specials would be majorly affected , as they are priced higher. 5.4 MARKET SEGMENTATION
The adventures people and kids & teen agers are our main target market. Adventures and sporty
segment. 1. Athletes 2. Hill station living people 3. Tourist 4. Tracker Kids segment. 1. Small kids 57 years 2. 8-15 years, teen agers and younger childrens University/college students are another
prime market segment. 1. They are mostly undergraduates, so there is a 25% annual turnover.
13. Rtl Cycl All in one RETAIL BICYCLE STORE 12 2. The lack of parking in the university area
and the general ease of bike mobility & motivates them to use bicycles as inexpensive transport.
Athletic pursuits draw them, and the nearby areas for use of mountain and trail bikes provides a
great place to ride. 3. There is a new enthusiasm for retro Cruiser bikes, and higher tech cruiserstyle bikes with multiple gears, good brakes, etc. among the college age population. 4. Also, main
market for racks, locks, throughout, pannier/bags, fenders, rainwear, etc. 5. They want convenience
for sales and service. Employees/ Working professionals 1. Small growth and turnover, but on the
whole, the group is pretty stable. 2. Are willing to commute by bicycle to work. 3. They want a stable,
comfortable bike and a full range of accessories. 4. When their bikes need service and maintenance,
local drop off/pickup convenience is important. 5. They have families who ride bicycles also, and will
patronize a shop that gives personal service. The Indian bicycle market comprises two segments:
standards and specials. Standards are the workhorses of the rural economy. These cheap and
rugged bicycles have remained unchanged for decades. The specials or fancy segment comprises
new generation bicycles, which are more expensive. Differentiation is the name of the game here.
Specials Out-pacing Standards: Standards, which accounted for over 90% of the market in the early
2000s today account for only 66% of cycle sales in the country. This is mainly because: A new class
of bicycles called juveniles, which are categorized in the specials segment, have over- taken the
standards. The juvenile is, in effect, a standard bicycle with a more urban look, which is targetted at
the rural and semi-urban youth. Its popularity can be gauged from the fact that while standard
bicycles registered a compound annual growth rate (CAGR) of 2.7% between 2006-2007 and 20122013, juveniles raced ahead at 12.6% in the same period. Manufacturers have also increasingly
attempted to wean away consumers to the specials segment through greater marketing push and by
attractively pricing specials. This has, to an extent, hurt standard sales in semi-urban areas.
14. Several garage mechanics offering service only. 6.2. Competitive Comparison The domestic
bicycle industry is oligopolistic in nature, dominated as it is by three organized players: Hero Cycles
Limited (Hero), Tube Investments of India Limited (TI) and Atlas Cycles (Haryana) Limited (Atlas).
These players account for over 90% of the countrys total bicycle sales. Fringe players include Avon
Cycles and Hamilton. While TI is the clear market leader in the specials segment, Hero, which is also
the largest bicycle producer in the world, is a clear leader in the standards and in the overall
domestic market. As TI has the largest presence in specials, and as this segment has registered the
fastest growth in recent years, TIs volumes have recorded the highest growth. Although Hero has a
large base of standard bicycles, it has achieved moderate, albeit, consistent growth through its
strong focus on increasing its specials volumes. Of the three majors, Atlas is the most dependent on
standards. Hence, its volumes have faced the greatest pressure in the current environment. The
ongoing dispute in the promoter family over the division of the companys assets has further added
to Atlass woes .According to industry estimates, the bicycle market in Indi Local multi-location chain
that has specialized in opening shops in small local malls in areas of new housing development.
Local, including the oldest shop in town. State-wide chain of bicycle shops which started out as
Schwinn-only shops, but has had to take on other brands and products. local multi-sport store at the
local megamall Rtl Cycl All in one RETAIL BICYCLE STORE 13 6.1. COMPETITOR ANALYSIS
MAIN COMPETITORS Setting aside the discount department stores,Rtl Cycl has the following
direct competitors. a is 14 million units a year, of which 5-7% belongs to the premium segment,
growing at 25-30% annually. Firefox is one of them, which has a manufacturing facility in Sri Lanka
from where the bicycles are imported. The Trek products are imported from China and the US. While
the Firefox range is priced between Rs 4,000 and Rs 18,000, the Trek's bicycles are priced at Rs
15. Rtl Cycl All in one RETAIL BICYCLE STORE 14 20,000-85,000. Firefox Bikes claim that they
plan to capture 2.5-5% of the total bicycle market in India by growing at the rate of 40% per year. 7.

Marketing Strategy Our marketing strategy seeks to optimize our advantage of prime location. We
want the university population to see us as their bike shop, even our name says so Rtl Cycl We
want them to see us as part of their daily experience, and a shop they can depend on for quick
repair and maintenance service. 8. MARKETING MIX: A. PRODUCT: In the first year of operation
we would be launching cycles for kids up to the age of 9 years. We will have special bicycle ranges
for boys (superhero series) and girls (bubbles series). Superhero series will have Batman Black,
Spiderman Red, Hulk green etc and bubbles series will have bubble red, bubble blue and bubble
green etc.
16. Rtl Cycl All in one RETAIL BICYCLE STORE 15 Customization options in terms of colors, seats
etc. would be made available. By the third year we plan to extend our offerings to adults as well
through our ranges Outdoor fun (Adventure Series), For racers (Pace series) and for city riding
(Joy series). B. PRICE: Our strategy is to be cost leaders in the bicycle business but we wont be
compromising on quality and our prices would be the best prices available in the market.
17. Talk about yourself. (explained in detail) D.2 Press Release A well written press release is an
excellent way to make the public aware of our product or company. We can submit a press release
to local and national newspapers, radio, television, magazines and trade publications both online
and off. Making our press release attention grabbing, truthful and newsworthy to get an editors
attention is necessary. For best results focus of the articles should be on a targeted audience
instead of a wide readership. Get others to talk about - The best way to do this is to surpass
customers expectations. This may include free gifts with each product, taking feedback from
customers using our product etc. Another way to get people talking is to provide extra information
like information about the history of our business. Other methods include: o Sending thank-you,
birthday and seasonal cards o Offering special sales for loyal customers. o Handling customer
complaints quickly and to their satisfaction o Being professional and respectful to all customers o
Offer discount coupons in fliers o Offer free evaluations or consultations. o Giving free T-Shirts
having companys logo and name with our products. Rtl Cycl All in one RETAIL BICYCLE STORE
16 C. PLACE: Initially our target market would be concentrated in northern India especially Ludhiana
and Delhi. We would be selling our bicycles through retailers and through our online portal. Amongst
the retailers our main targets would be exclusive multi brand cycle stores, sports good stores etc. D.
PROMOTION: Since our budget is limited we will go for cost effective promotion strategy. D.1.
Advertise for free by word of mouth Word of mouth is the best way to advertise for free. Word of
mouth advertising depends on reliability of the brand and for that quality is must. There are two ways
to promote your business by word of mouth:
18. Television being an image-building and visual medium, it offers the ability to convey our
message with sight, sound and motion D.6 Mailing Lists: The internet has hundreds of thousands of
mailing list that we can subscribe to and sell your product or service. Even if the list group does not
allow you to sell your product, it is common practice to have a 6-8 line "signature line" that is
automatically put at the bottom of all outgoing messages, e-mail responses and forwarding e-mails.
It is easy to find specific mailing lists like biking groups etc. D.7 Mobile Marketing: We would send
SMS to retailers to advertise our products and various schemes. D.8 Social Media: Social media
sites are great for building customer relationship and offer an incredible reach and the opportunity to
connect with customers in an entirely new way. They also offer a wide reach, with its potential for
viral marketing and traffic generated can be extremely targeted. Moreover, Social media tools are
relatively inexpensive. Independent stations and cable offer new opportunities to pinpoint local
audiences Television permits us to reach large numbers of people on a national or regional level in
a short period of time Attend local business groups' meetings and business card exchanges. D.5
Local Television: Advantages of Television advertising: Running booths at local fairs. Giving free
talks to community groups on the health benefits of cycling. Giving cycles or service donations to a
charity auction. Having a "happening" -- contests, parties or picnics for our customers. Distribution
of fliers through newspapers etc. D.4 Sponsor contests Another way to receive free advertising is to
offer to sponsor a contest for a community event or large publication Community Involvement can be
done in many ways: Advertising in local free shopper magazines. Rtl Cycl All in one RETAIL
BICYCLE STORE 17 D.3 Print Media

19. Blog Another section of the website will incorporate a blog which will provide bicycle
enthusiasts to communicate with each other, share their experiences and offer help to newbies. 9.
Pricing Strategy Retail Pricing of bicycles is very tight with a markup of between 30% and 40%
depending upon the brand and model. Many people believe that bicycles are priced like automobiles
and are open for negotiation, and make almost insulting offers. The shops have little leeway here.
Parts and accessories are generally keystone priced. Some small items cost more in handling and
sales than they do to buy from supplier. These can be double and triple keystoned, because
customers won't buy them if they don't have a minimum perceived value. On the plus side, these are
great "throw-in" items used to close the sale of a bike. When new technology arrives in bicycles, and
if the supply is limited, almost any price can be demanded. This was the case in the mid-1990s when
RockShox introduced suspension forks for mountain bikes. The bike nobs would pay whatever was
asked just to get those forks. Of course, in this type of situation the price, both wholesale and retail,
lowers. Other accessories, such as step-in pedals, pannier racks, helmets, or headlights are
sometimes heavily marketed by the manufacturers. While this drives demand and brings people into
the shop to get these items, the suggested manufacturer's retail price may limit markup. The markup
on clothes, shoes, jackets, gloves can vary from keystone to triple keystone, depending upon
product, manufacturer, country of origin, and customer perception of value. Pearl Izumi and Burley
Design rainwear can demand premium prices as top-of-the-line garments, but E-portal - Our website
will host an e-portal for dealing directly with customers and to cater to people who want to buy
bicycles online. It will provide customization options and 360 degree view of final selection. Users will
have the option to pay online or opt for Cash on Delivery. Twitter: Twitter is yet another social media
tool which can be used for protmotion of our products. Our company can make an account and
people can follow it to know about the latest happenings in the company. D.9 Website: Facebook:
With millions of members with most being young and thus our potential customers, Facebook is must
to advertise about our products. Easiest way is to create a Facebook page of the company and
constantly update it with all the events and new products. Rtl Cycl All in one RETAIL BICYCLE
STORE 18
20. Rtl Cycl All in one RETAIL BICYCLE STORE 19 many budget conscious students can only
afford a RS35 nylon windbreaker. It has been and always will be a demanding job for us to
adequately stock garments at the various price points. Service We try to maintain a basic "Hourly
shop rate" at Rs200/hour. Standard repairs are then priced based upon an average time for
completion. Some repairs, such as a flat tire, are limited by customer perception of difficulty. All parts
used in repairs are priced at keystone, and added to the labor service charge. With several other
bicycle shops in the city, there are some price constraints based on competition. Coupons and
specials can balance price ceilings by drawing in customers. 10. Sales Strategy Sales vary season
to season and with the academic school year. Surprisingly, summer is the slowest season because
there are fewer students in town. Business picks up in August with the return of the students and
staff, and flourishes in September. Accessories and rainwear sales increase in the autumn and early
winter. Repairs and maintenance are steady. Holiday sales are brisk, though generally leaning again
to accessories, parts, rainwear, gloves, helmets, headlights, etc. Winter sales are moderate, and
then pick up in springtime as people put away their skies and look forward to local outdoor activities,
longer daylight hours, and drier weather.
21. Rtl Cycl All in one RETAIL BICYCLE STORE 20 11. Business Model Canvas Key Partners Key
Resources Customer Relationship Channels Value Propositions SUPPLIERS MANAGING
TEAM/ENGINEER ORDER THROUGH WEBSITE/ FREE DELIVERY OWN STORE NEW
PRODUCT PUBLIC AND PRIVATE PARKING HELPER PARKING NETWORK INFORMATION
WEB SITES CHEAP PRICE JOINT VENTURE WORKER PROMOTION & FORUMS/ BIKERS
EVENTS TV/NEWSPA PER BELONGING TO A CYCLIST COMMUNITY WHOLESALERS
DELIVERY STAFF FRONT STORE HOME DELIVERY SUSTAINABLE BRANDING AND VALUES
AD AGENCY RAW MATERIAL SAFETY WHOLESALE R BRAND SPORTS CELEBRITIES
SUPPLIER GIFT/ LOYALTY PLANS BUS/CAR DEMO
22. Rtl Cycl All in one RETAIL BICYCLE STORE 21 Customer Segment Revenue Stream Cost
Structure Key Activity ADVENTURES PURCHASES BY THE NEW TARGET SALARIES DELIVERY

KIDS USAGE/ONLINE SALES DELIVERY SELLING THE SERVICES TEENAGER WORD OF

MOUTH RENT/PROMOTION & CAMPAIGN COSTS RECEIVING ORDERS & INSCRIPTION
SPORTY SALES/ PARTS & ACCESSORIES SALES MARKETING MARKETING
UNIVERSITY/COLLEGE GOING PERSONAL SALES RAW MATERIAL AWARENESS
EMPLOYEES/WORKING PROFESSIONAL BRAND AWARENESS SUPPLIERS PAYMENT
AVAILABILITY MAP
23. Rtl Cycl All in one RETAIL BICYCLE STORE 22 12. FINANCIAL PLAN This financial plan was
developed based upon previous years' data for the existing store, tracking trends in revenues and
expenses. A five-month track of sales, accounts receivables and payables, and inventory from a
year-end benchmark was made. The seller, buyer, and the accountant worked together on the plan
to balance optimism with reality. An attorney was consulted on specifics of the sale contract. The
topics which follow present specific projections. Important Assumptions Payment days are averaged
at 45. This is an average figure used for planning purposes. Bicycle manufacturers and some
accessories suppliers offer dating programs where shops order product at the annual trade show in
September for delivery in February or March so that new product will be available to customers at
the beginning of the cycling That gasoline prices will continue to encourage alternative
transportation, e.g. bicycle commuting. That the lack of auto parking in the university area will
continue. The current enrollment at the university will continue at or above its current level. The
level of discretionary income will remain steady or increase. Interest rates will fluctuate only slightly.
season. Shops are invoiced for payment due, depending upon the program, somewhere between
May and July. The financial projections presented here are based on the assumption that suppliers
will continue their current invoicing programs with University Cycle Works. We are thankful for the
active support and advocacy of the various sales representatives who deal with us. Other products
are ordered on a monthly basis to replace items sold, such as tires, tubes, aptitude and cages, ball
bearings, drive chains, etc. These are invoiced at net 30. Some special orders are C.O.D. We also
assume that:
24. Rtl Cycl All in one RETAIL BICYCLE STORE 23 12.1 Profit and Loss for 3 years projection: (All
terms in Rs* 100, in hundreds) Year 1 Year 2 Year 3 Sales RS501,200 RS576,380 RS662,837
Direct Cost of Sales RS177,680 RS204,332 RS234,982 Other RS0 RS0 RS0 Total Cost of Sales
RS177,680 RS204,332 RS234,982 Gross Margin RS323,520 RS372,048 RS427,855 Gross Margin
% 64.55% 64.55% 64.55% Expenses Payroll RS123,900 RS135,450 RS162,828 Sales and
Marketing and Other Expenses RS24,866 RS27,420 RS30,521 Depreciation RS12,000 RS13,500
RS15,000 Leased Equipment RS1,800 RS1,800 RS1,800 Utilities RS3,600 RS3,600 RS3,780
Insurance RS4,200 RS4,500 RS4,725 Rent RS88,000 RS88,000 RS88,000 Payroll Taxes
RS30,975 RS33,863 RS40,707 Other RS0 RS0 RS0 Total Operating Expenses RS289,341
RS308,132 RS347,361 Profit Before Interest and Taxes RS34,179 RS63,916 RS80,494 EBITDA
RS46,179 RS77,416 RS95,494 Interest Expense RS8,433 RS6,730 RS5,040 Taxes Incurred
RS6,445 RS14,296 RS19,178 Net Profit RS19,302 RS42,889 RS56,276 Net Profit/Sales 3.85%
7.44% 8.49%
25. Rtl Cycl All in one RETAIL BICYCLE STORE 24 This business plan is giving a sustainable
profit per year, even giving the net profit of 3.85% to 8.49 % within first three year, so it is a feasible
and viable model, investor can invest in this model. AAA 13. ACTION PLAN: Phase I First and very
important during the Launch all primary activities of retail store , would be taken care off, as in matter
of location, space, design of store, Contract with Vendor, logistics, Website Development, and all
primary requirements. The store will primarily serve as a bicycle retail store, but with a whole lot of
Augmented Activities. Even the Promotional Part would be kept simple with the main focus on
sponsherships, games events and also online promotions using IMC. The Duration of the Phase I
Action Plan is around One Year. The main objective here is to create as much awareness as
possible for store and its Touchpoints, and also Customer Retention and Loyalty. Phase II In Phase
II the plan is to take Store to another level. This will happen with the Launch of the online and mobile
application to make sales easy, then providing the demo. The Mobile App and online videos demos
will add more Value to Customers. In Phase II we are also increasing our work force and as such
Man Power Cost is increasing.

26. www.Canvasbm.com www.bplans.com www.entreprenuership.com Google Business Plan

Generation Model Philip Kotler- Marketing Management Rtl Cycl All in one RETAIL BICYCLE
STORE 25 Promotional Activities are same as that in Phase I with a little addition of Events into the
scheme of things. Some more time in the future store has plans to tie up with cycling sport
celebrities and collaboration with top cycling and accessories companies like Shimano gears,
Cycleurope , Accell Group to handle national and international Delivery. At this moment it is happy
with Chandigarh being the prime Business Location as it is a sport hub, having enormous number