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TO STUDY THE MARKET POTENTIAL OF PREMIUM BICYCLES IN AND AROUND ADONI TOWN

Project submitted in partial fulfilment of the requirements for the

Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

OF

BANGALORE UNIVERSITY

of MASTER OF BUSINESS ADMINISTRATION OF BANGALORE UNIVERSITY By TINKAR ABDUL AEJAZ AHMED Reg. No. 17YUCMD214

By

TINKAR ABDUL AEJAZ AHMED

Reg. No. 17YUCMD214

Under the guidance of

Mr. ELLUR ANAND

Associate Professor

ACHARYA BANGALORE B-SCHOOL

Bangalore University

2018-2019

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CHAPTER-1

INTRODUCTION

1.1 Bicycle Design

1.2 History of Cycling

1.3 Types of Premium Bicycles in India

1.4 Present Status of Premium Bicycles in India

1.5 Export Potential

1.6 Growth of Indian Bicycle Industry

1.7 Market Potential

1.8 About Adoni

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INTRODUCTION

Cycling, likewise called bicycling or biking, is the utilization of bicycles for transport, entertainment, practice or sport. People occupied with cycling are alluded to as "cyclists", or less regularly, as "bicyclists". Apart from two-wheeled bikes, "cycling" additionally incorporates the riding of unicycles, tricycles, and Quadra cycles, prostrate and comparative human-fuelled vehicles (HPVs).

Bicycles were presented in the nineteenth century and now number around one billion worldwide. They are the primary methods for transportation in numerous parts of the world.

Cycling is generally viewed as an exceptionally compelling and effective method of transportation ideal for short to direct separations.

Bicycles furnish various advantages in correlation with engine vehicles, including the continued physical exercise engaged with cycling, simpler leaving, expanded mobility, and access to streets, bicycle ways and provincial trails. Cycling likewise offers a diminished utilization of petroleum derivatives, less air or commotion contamination, and much decreased traffic clog. These lead to the lessmoney-related expense to the client and added to society everywhere (unimportant harm to streets, less street zone required). By fitting bicycles racks on the facade of transports, travel offices can altogether build the regions they can serve.

The essential shape and setup of a common upstanding or "security bicycle", has changed little since the primary chain-driven model was created around 1885. However, numerous subtleties have been enhanced, particularly since the approach of present day materials and PC helped structure. These have considered a multiplication of specific plans for some kinds of cycling.

Among the disservices of cycling are the prerequisite of bicycles (aside from tricycles or Quadra cycles) to be adjusted by the rider so as to stay upstanding, the diminished assurance in accidents in contrast with engine vehicles, regularly longer travel time (aside from in thickly populated regions), defencelessness to climate conditions, trouble in transporting travellers, and the way that a fundamental dimension of wellness is required for cycling moderate to long

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separations. The Indian bike showcase is required to develop fundamentally soon because of expanding reception of premium bicycles separated from standard ones, as indicated by the India Bicycle Market Outlook, 2021. The passage of remote firms will be a force. The significant residential organizations like Hero Cycles, TI Cycles, Avon Cycles, and Atlas are endeavoring endeavors to snatch the market through wise developments in this fragment.

1.1 Bicycle Design:

Any kind of bicycle configuration is characterized by what the bicycle is utilized for; these are the prerequisites of the plan. As dependably the real generally speaking bicycle prerequisites are speed, wellbeing, solace, and perseverance. The bicycle weight is the way to speed, however, the lightweight need must be adjusted by alternate elements (wellbeing, solace, and perseverance). For us to satisfy these prerequisites we should choose explicit materials. This is called material determination.

1.2 History of Cycling:

Cycling rapidly turned into a movement after bicycles were presented in the nineteenth century and stay well known with in excess of a billion people worldwide utilized for amusement, transportation, and game.

1.2.1 Racing:

The principal archived cycling race was a 1,200-meter race hung on May 31, 1868, at the Park of Saint-Cloud, Paris. It was won by ostracize Englishman James Moore who rode a bicycle with strong elastic tires. The principal cycle race covering a separation between two urban communities was ParisRouen, additionally won by James Moore, who rode the 123 kilometers partitioning the two urban areas in 10 hours and 40 minutes.

partitioning the two urban areas in 10 hours and 40 minutes. The most established built up

The most established built up bike dashing club in the United States is the St. Louis Cycling Club. Working Bicycle Racer posed at Salt Palace constantly since 1887, the club has supported races and planned separation

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occasions since its commencement. Its individuals have incorporated various national heroes and Olympic colleagues.

1.2.2 Recreation:

Cycling as amusement ended up composed not long after hustling did. In its initial days, cycling united the genders in an unchaperoned way, especially after the 1880s when cycling turned out to be progressively available attributable to the innovation of the Rover Safety bicycle. Open cries of alert at the possibility of good mayhem emerged from this and from the advancement of ladies' cycling clothing, which became logically less encompassing and restrictive.

On 4 March 1915, the general public for the development of cycleways in the Gooi and Eemland locale in the Netherlands was established. It is the last private "Cycle Path Society" that still exists today. A few people thought the expanding measure of engine traffic in the mid-twentieth century was so unsafe for individuals cycling, particularly the individuals who rode as a relaxation movement, that they needed separate cycling framework to be constructed. The courses would likewise not be associated with a course for engine traffic and for the most part for entertainment - so not the briefest courses, but rather the most delightful routes.

Today we see a resurgence of recreational cycling. We can see this with numerous companies taking care of the demand for this pattern and spend significant time in retro/vintage style bicycles that began in the Netherlands.

1.2.3 Touring:

Numerous cyclists needed to utilize their machines to travel; some of them circumvented the world. Annie Londonderry did as such during the 1880s, taking 15 months. Six Indian men cycled 71000 km around the globe during the 1920s.

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1.3 Types of Premium Bicycles in India:

1.3.1 City Bicycles:

In the event that you are looking to simply ride inside the city, consider getting yourself a city bike. These bicycles accompany a straightforward casing geometry with a raised handlebar that offers you an upstanding riding position offering the rider a great deal of solace. The bicycles additionally have an expansive seat to that improves riding even. There are additionally ladies explicit city bicycles accessible that offer more solace.

1.3.2 Hybrid Bicycles:

A bicycles perfect for wellness, and long separation visiting is a half and half bicycles. Cross breed bicycles are fundamentally a mix of a street bicycle (700c street bike wheels) and a trail blazing bicycle (level handlebars). These bicycles are more towards execution and offer a proficient riding position.

There is a wide assortment of cross breed bicycles accessible in the market. Some have more extensive tires and a suspension fork in advance, to assuage harsh streets, while others have smaller tires and an unbending fork for progressively proficient landing area riding.

1.3.3 Road Bicycles:

Intended for execution and speed, street bicycles are light and intended to be ridden on cleared streets. The geometry of these bicycles offers a short wheelbase, low base section, and the lofty head tube that lets the rider to respond in a split second. The bicycle additionally offers a low focal point of gravity which is reasonable for turning.

Another attributes of these bikes are the thin tires 20-25mm width put on 700C wheels. The bicycle likewise accompanies a drop bar handle bar that positions the rider in an air position.

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1.3.4

Mountain Bike(MTB):

As the bike accompanies wide tires that offer additional footing and an upstanding edge offering higher freedom, it is anything but difficult to ride onassortment of surfaces, including rock, soil, shake and sand.

Moreover, these sort of cycles likewise has an extensive variety of adapting that offers an assortment of riggings to pick while riding on level or soak landscapes.

MTB's are generally accessible in 2 types; the hard tail (front suspension) and a double suspension bike (front and back suspension).

1.3.5 Fat Bike:

As the name recommend, this kind of cycles accompanies fat tires which are larger than average. Such sorts of bikes are intended to be ridden on snow, sand, earth tracks and on rough territories. The wide tires are the thing that makes it conceivable to offer the rider more footing and padding. Likewise, the adaptable bicycles accompany wide tires that make conveying loads a lot simpler.

1.3.6 Time Trail:

These bicycles are called as time preliminary or TT bicycles! These bicycles are a regulated variant of street bicycles with more accentuation on a streamlined edge structure and furthermore an expansion of time trail explicit handlebar augmentation to make the riding stance air.

1.3.7 BMX Bicycles:

These sorts of cycles accompany little casing and wheels. They likewise have a level handlebar and no apparatuses. In spite of their little size, the bicycles are solid and can deal with the heaviness of a normal grown-up while playing out the tricks.

The best part about BMX bicycles is the 360° rotational pivot and expansion tubes from the front and back tire centre ribs which are altogether used to perform traps.

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1.3.8

Folding Bicycles:

The bikes are structured explicitly to drive. The bicycles are light can be effectively collapsed into a minimal shape (size of a bag) that can be conveyed effortlessly on open transports or prepares.

1.3.9 Fixed-Gear Bicycles:

Settled apparatus bicycles, additionally called as fixies, and are intended to be ridden on a velodrome. These bicycles are supposed in light of the fact that the back centre of the bike is bolted that is utilized as an approach to stop. The majority of the bicycles don't accompany any brakes.

1.3.10 Touring Bicycles:

These sorts of street bicycles are exceptionally intended for the cleared streets. These bicycles offer great solidness and a perfect for self-help long separation riding.

1.3.11 Cyclocross Bicycles:

Additionally called as 'Cross bicycles or CX bicycles, these bicycles are particularly intended for blended sorts of surfaces, which could be a mix of both cleared and unpaved trails with rock and grasses.

1.3.12 Tandem Bikes:

Tandem bicycles are a pair bicycles will be bikes that are particularly made for two individuals or riders to ride. Such kind of cycles are accessible in a wide range of styles, from cruiser couples and half breed couples for the bicycle way or footpath, rough terrain trail blazing bicycle couples, and elite street dashing couples. Be that as it may, not all may be accessible in India.

1.3.13 Recumbent Bike:

These bikes put the rider in a laid-back leaning back position. This kind of cycles let the rider disseminate its weight serenely over a bigger region, bolstered by back and hindquarters.

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In the event that you've seen the upstanding position of a conventional bike, the body weight lays completely on a little bit of the sitting bones, the feet, and the hands. However, on prostrate bicycles, it is disseminated over a bigger zone.

1.4 Present Status of Premium Bicycles in India:

The bicycle fabricating centre of India at Ludhiana is stagnating because of the absence of development. The state government has contributed to encouraging joint efforts among Chinese and Indian organizations to make cutting-edge bikes in Ludhiana. The arrangement is to set up the world's biggest, top of the line, electric bicycle fabricating office with a limit of 15 million cycles for each year.

The hi-end bicycle portion is new to the Indian cycling industry. In a previous couple of years, it has picked up a piece of the pie of 6 % of the 6 million standard bicycles sold each year in India. Shiv Inder Singh, Managing Director of Firefox Bikes stated, "Right now the market volumes around 350,000 top of the line bicycles and by 2020 this figure would prone to contact the one million stamp. Most of the top of the line bikes are foreign made and appropriated by well-known global brands."

As indicated by the information given by ChooseMyBicycle, the main five goals as far as bikes deals are Uttar Pradesh, Madhya Pradesh, Bihar, Tamil Nadu, and Maharashtra. The general market is developing at around 2 to 3% on a yearly premise, while the 'Excessively premium' bike class is developing at 25-30%. The Indian bicycle advertises developed with a CAGR of only 1.04% from 2010 to 2015. At present, the pattern of the premium bike is developing in India and thusly, the significant local players are attempting endeavors to get this space.

Premium bikes section is relied upon to get about 7% of the aggregate bike to advertise in India by 2021. The information from residential cycle fabricates demonstrate that in 2012-13 India created around 15.5 million bikes out of which 12 million bikes were sold.

The Global Bicycle Industry generates deals for over $45 billion in 2017 and is anticipated, as indicated by analyst agreement, at 6-0% p.a. throughout the following 5yr

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In 2016 in the United States, it created $6 billion of income and in Europe, it produced €14 billion in incomes.

1.5 Export Potential:

In 2015, Hero Cycles, the world's biggest bike maker, cooperated with International Indian Film Academy Awards (IIFA), for a reason and propelled its 'Cycling Heroes' crusade that advanced the utilization of cycling for good wellbeing. In the Netherlands, Germany, and the UK, there are assigned cycling paths, which whenever actualized in India, can facilitate its urban traffic hardships.

1.6 Growth of Indian Bicycle Industry:

India - Second biggest maker and Third biggest exporter on the planet

India was the fourth biggest maker of bikes after China, USAand Japan from 1978 to 1991. It outmanoeuvred USA and Japan in 1992 to wind up the second biggest maker of bikes on the planet.

India delivers roughly 10% of the world yearly bike generation, which is assessed at 125 Million units. Significant players in the local bike industry are Hero Cycles, TI, Avon and Atlas with 40%, 22%, 17% and 10% of offer of volume individually. Most cycles fabricated and sold in India are in the low value section of Rs. 2,500 to 3000.

The market for the premium or the way of life bicycles focused towards the way of life customer is just about developing. The meaning of top of the line bicycles itself is evolving. Prior the top of the line bicycles was considered as those moving between Rs. 5000 to 8000. Anyway now with worldwide brands moving into the nation, this definition is likewise changing with value guides beginning from Rs.15000 toward as high as a couple of lakhs!

Not exclusively are the value focuses changing however even meaning of the portion is. Heretofore, cycles were short-sightedly sectioned into gentlemen, women, children,and top of the line. In any case, presently the way of life bicycles are being sectioned in accordance with the worldwide pattern that depends on their use. There are Road bicycles, Mountain bicycles, Tourers, Hybrids, BMX' to

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give some examples. For all intents and purposes, all the enormous names are available in the nation like Giant, Trek, Merida, and Canondale and so forth.

The interest for these cycles at this stage is extremely restricted however is set to develop at a frantic pace in future. While the mass-showcase portion is encountering a drowsy development of between 4-6% every year the premium and way of life section is developing at a CAGR of over 30%. The market measure for the way of life cycles is assessed at not more than 0.25 million units yearly but rather its solitary time that this section will frame an essential piece of the business

India bike advertise comprises of household and additionally global players. India has been seeing a moderate development since a decade ago in bike industry. Rising discretionary cashflow, quick urbanization and monstrous development in framework prompted increment in the vehicular populace in India which blocked the development of bike showcase. Nonetheless, the market is presently indicating positive development from most recent two years. Country shoppers are the key end clients of bike as in rustic region bike is a standout amongst the most vital methods of transportation for center and low salary gatherings. Key highlights of bike, for example, condition well disposed and wellbeing neighborly are driving the interest of bikes in urban India. At present, the pattern of premium bike is rising in urban India and thus all the local players are trying endeavors to snatch the space in this quickly developing portion.

As indicated by "India Bicycle Market Outlook, 2021", bike advertise estimate crossed INR 5000 crore stamp in 2015. The market is currently expected to develop at a sound rate in the figure time frame because of expanding reception of premium bikes separated from standard ones. Passage of remote firms has turned out to be less demanding and hence numerous global bike organizations have presence in the Indian market. This has prompted monstrous rivalry among global and household players. The low entrance of bike in India pulls in different worldwide firms through serving more prominent open doors for universal players. The key residential players, for example, Hero Cycles, TI Cycles, Avon Cycles, and Atlas are endeavouring endeavours to snatch the market through development and premiumization in bicycles.

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1.7

Market Potential:

1.7.1 Definition of Market Potential:

Deciding the market capability of an item is a piece of a fruitful advertising process and requires showcasing research. You'll have to look at somewhere around three factors that will decide if the market capability of your item merits the speculation. You have to break down your potential client base, dissect your opposition and investigate the current natural conditions that may influence advertising potential.

1.7.2 Analysing Potential Customer Base:

You have to decide the size and statistic qualities of your potential shoppers. Imperative data to get incorporates the populace size of your objective market, their item inclinations, and their middle yearly family salary. This will disclose to you the number of potential clients and whether they can really bear the cost of the item. You can survey your item's potential client base by investigating optional information, or information that as of now exists, for example, statistic information gathered by the United States Census Bureau on family socioeconomics in each state. You may likewise choose to gather essential information, which is information you gather explicitly to dissect the market capability of an item. Run of the mill methods for gathering essential information incorporates phone overviews utilizing an arbitrary example of families drawn that you trust coordinate your objective market.

1.8 Research has been carried out at Adoni town:

market. 1.8 Research has been carried out at Adoni town: Adoni is a city in Kurnool

Adoni is a city in Kurnool locale in the Indian territory of Andhra Pradesh. It is a district and the central station of Adoni Mandal, regulated under the Adoni Revenue Division. As of 2011 enumeration of India, Adoni had a populace of 166,537, making it the sixteenth most crowded city in the state. It had an urban agglomeration populace of 184,771.

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CHAPTER-2

COMPANY PROFILE

2.1 About JAIHIND CYCLE STORES

2.2 History of JAIHIND CYCLES

2.3 Objectives of JAIHIND CYCLES

2.4 TOP Brands of Premium Bicycles in Adoni

2.5 4Ps of JAIHIND CYCLES

2.6 Competitors

2.7 Top Premium Bicycle Models in Adoni

2.8 SWOT analysis of JAIHIND CYCLES

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COMPANY PROFILE

2.1 About JAIHIND CYCLE STORES:

JAIHIND CYCLE STORES is the top bicycle store in Adoni Town. Since 1997 JAHIND CYCLE’S have been active in the Bicycle industry, they sales multi- brand bicycle as well as spare parts. JAIHIND CYCLE’S are having five Company’s dealership with them like Hero Cycles, Avon Cycles, TI Cycles, Atlas Cycles,and Milton Cycles. There are different models of bicycles available from low cost to high cost, Customers are very likely to purchase bicycles from them because of their quality materials as well as services.

2.2 History of JAIHIND CYCLES:

In 1995 they entered in this business by selling the Rickshaw spare parts and also they were owing 20 Rickshaws with them at that time, His father uses to give those Rickshaws for rent by that he was getting paid from other persons. Then they had purchased few bicycles from other dealers to expand their business from Rickshaws to Bicycles, at that time there was a huge demand for bicycles in Adoni Town. The owner of that shop wants to get dealership from any company to enter in bicycles market that was the only opportunity to enhance his business, he starts purchasing more bicycles from other dealers then he got the opportunity to expand bicycles business by getting offers from Avon Cycles. He grabs that opportunity which was very significant to enhance business and ordered full truck approximately he had given an order of 300 to 400 quantity of bicycles from Avon Cycles. By this information, other companies provided their company dealership to JAIHIND CYCLE’S and their journey from 1997. Now they are leading sellers in and around Adoni town.

2.3 Objectives of JAIHIND CYCLES:

To provide a qualitativeproduct or service to their customers.

To maintain a good relationship with their service members.

To improve sales by offering discounts to their customers.

To satisfy customer needs and wants with their product or service.

To understand the premium market scenario in and around Adoni town.

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To reach their targets by that they get huge discounts or offers from companies.

2.4 Top Brands of Premium Bicycles in Adoni:

2.4.1 Hero Cycles:

Saint Cycles, which as of now directions and a lot of the mass market cycles in India, has recently wheeled in a superior range.

Propelled on Monday in the Rs 10,000 Rs 43,000 value go, the new premium arrangement of 17 models highlights carbon fiber bicycles, for example, 'Red Dot'. The arrangement is to later take the range up to Rs 3.5 lakh with simultaneous model increments.

New outlets of the 260 merchants expected to retail the new premium range, Hero Cycles will open 30 organization claimed outlets in 25 urban areas, aside from 30 establishments devoted to the brand. Furthermore, 200 out of the current 2,200 Hero Cycle merchants will likewise move the range crosswise over 35 urban communities.

The Rs 1,700-crore organization is focusing on offers of 70,000 units in the top- notch cycle advertise (above Rs 10,000), which is at around two lakh units a year. On the whole, Hero moves 5.6 million cycles every year.

2.4.2 TI Cycles:

Known best for its lead bike brands BSA, Hercules and Montra, TI Cycles has for all intents and purposes made and idealized each new cycle classification in the nation the first MTB, the principal adapted bicycle, the first Shox demonstrate, the main young ladies' bicycle, the primary children's bicycle, the primary light roadster, the principal carbon outline bicycle and India' first cycling bistro.

TI Cycles has plants at Chennai, Nasik and Noida; and significant distribution centers at Guwahati, Durgapur, Patna and Cuttack and territorial workplaces, through which it serves it across the nation 2500 or more merchant arrange.

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2.4.3

Avon Cycles:

They began with a bike seats and brakes producing unit in 1948 and set off on a long and exhausting adventure. Before long, it was the ideal opportunity for a yearning take-off. To understand their appreciated dream, the business was fused in 1951. To create bikes, the organization Avon Cycles appeared. A start was made when the main clump, maybe 250 bikes, took off of the plant.

The quality was brilliant, the cost was sparing and the business dealings moral. That earned the advertisers moment agreeableness. Holding such qualities dear, the Pahwas constructed trust, step by determined step. The numbers continued developing and in the pioneers' association, AVON along these lines stayed in the best entertainer's position from that point forward. The advertisers' tolerating confidence in human qualities and decency, similarly fabricated persevering business bonds with a tremendous system of merchants in India and abroad. High- class innovation, reliable quality and compelling after-deals benefit made an ideal suggestion.

Throughout the years the business extended and it saw the introduction of more organizations doing different segments expected to finish bike gathering. The Group developed to claim offices making every such part.

2.4.4 Atlas Cycles:

The productive adventure of Atlas Cycles started in 1951 and from that point forward the organization has set their foot in excess of 50 nations over the world. Map book Cycles has three offices in Sahibabad, Sonepat,and Gwalior with a day by day normal of delivering 15,000 units from the initial two assembling plants.

At first, Janki Das Kapur, who established the framework stone of Atlas cycles, used to import save parts from universal markets. Afterward, he guaranteed himself to convey quality bikes to his kinsmen at a sensible cost and thus, began Atlas Cycles in Sonepat.

Map book Cycles has been getting a charge out of the respect of being the biggest bike creator on the planet. Chartbook R&D fixate centers around assembling a few models, for example, bikes, city bicycles, trailblazing bicycles, kids bicycles,and sports bicycles. In the principal year of its tasks, Atlas produced

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12,000 cycles. To take care of the popularity of steel tube, Atlas likewise set-up steel tube office in Gurgaon.

Chartbook has a condition of-workmanship office in Sahibabad and the organization has been profited with various honors, for example, EEPC Award, FICCI Award,and Italy's Gold Mercury International Award. Map book has a tremendous dealership organize in the nation.

The above all the companies manufactures different models in premium bicycles such as Geared, Non-geared, Lightweight, Fancy, Stylist and so on.

2.5 4Ps of JAIHIND CYCLES:

2.5.1 Price:

In JAIHIND CYCLES, they are having different models of bicycles at different prices its depend upon the brand as well as a model. Premium Bicycles prices start from Rs.7000 in their store, Adoni is a place where from low class to high-class peoples living there so that every customer needs and wants are different as compared to another one it is significant to keep different models of bicycles in different price strategy. JAIHIND CYCLES purchases in high quantity from the company it helps them to provide discounts as well as to make a more benefit.

2.5.2 Product:

When it comes to product JAIHIND CYCLES are the leading sellers of bicycles and spare parts as well in and around Adoni town. Satisfying the customer is the important thing for any business to grow their business in the future. JAIHIND CYCLES are having the 2 to 3 godowns where they store all materials and bicycles. Sometimes they face losses through damage materials and labor issues.

2.5.3 Promotion:

JAIHIND CYCLES promotes especially premium bicycles more because if a customer wants to buy bicycles they directly visitthe storeonly because of their quality products or service. There is no need to spend more cost on promotion about their store that is a good decision taken by the dealer of that store to save the time as well as the cost of business, JAIHIND CYCLES knows about their

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customers

qualitative products.

and

also

2.5.4 Place:

everyone

in

that

town knows

about

their

loyalty

and

Marketers saying that marketing is about putting the right product, at the right price, at the right place. JAIHIND CYCLES sales their products from store and godown as well, if a consumer wants to see more products apart from which are available in store they bring that customer directly to godown which helps the customer to select bicycles by looking many models in different brands. JAIHIND CYCLES business highly grows on festive seasons such as Dussehra, Diwali, Ramzan, Christmas, New Year and so on.

2.6 Competitors:

BHARAT CYCLE AGENCIES

GANESH CYCLE MART

In Adoni, there are only 3 stores of bicycles so the competition is low for JAIHIND CYCLES.

2.7 Top Premium Bicycle models in Adoni:

2.7.1 Hero Sprint Pro:

Legend Sprint Pro is another move by Hero Cycles to extend its quality in the premium and semi-premium wellness classification of bicycles

The brand makes an intrigue to the adolescent, wellness lovers and outside game fans who take up cycling as a recreation and experience movement.

Features :

Shimano EF-51

650B Wheel Size

Double Disc Brake

Front Suspension

21 speed

movement. Features :  Shimano EF-51  650B Wheel Size  Double Disc Brake  Front

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2.7.2

Hercules Roadeo:

Hercules Roadeo gone for young men and youngsters who display their aptitudes,

Hercules Roadeo is perfect for the striking and bold pioneer. Roadeo's scope of

outlines acclaimed
outlines
acclaimed

for

bicycles flaunts trendy steel and composite creator with full suspension and globally Shimano gears.

Features:

21sp Shimano

(EF-

EZ

fire

51)

smooth riding.

shifters

Double-walled Alloy rims for traction. MTB27.5Tx2.1 progressive nylon tire tread for smooth rolling.

6061 alloy frame providing superior ride quality.

2.7.3 ATLAS Cycles:

Atlas cycles are a major player in the bicycle market, with over 60 years in the industry. Started in a small shed in Sonepat, India, Atlas cycles are now a global force with over 4 million Atlas bicycles produced each year.

Atlas Peak Big Boss 26inches 21speed mountain bicycle for adults. Aluminium Frame & Front Fork.Disc Brake & Fat Tires,With Complete Shimano Equpiments.

Features:

Wall

Single

Alloy

wheel

Wanda 26x4.0 tire

21 Speed Shifters

Grey color

Features:  Wall Single Alloy wheel  Wanda 26x4.0 tire  21 Speed Shifters  Grey

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2.7.4

AVON Cycles:

Avon's Geared Bicycle Series offers bicycles that are imaginatively planned and have authoritative specialized prevalence. These power bicycles are intended for all investigation fans. Experience undoubted

control

astounding

hold

finish

balance.

Experience undoubted control astounding hold finish balance. with and Features:  Dual Suspension  Front and

with

and

Features:

Dual Suspension

Front and Back Disc Brake with Alloy Levers

6/18/21 Speed, Shimano Derailleur System

2.8 SWOT Analysis of JAIHIND CYCLES:

2.8.1 Strengths:

Monolopy in selling Premium Bicycles in Adoni.

Customer Loyalty

High skill service persons

Multi-Brand Dealership

Availability of all resources

Financial background family

Situated on the Main Road and Traffic zone area

Attracting customers by offering various schemes

Promotional Strategies by billboards

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2.8.2

Weakness:

Delay in Sales estimation

Labor difficulties

Time constraint

2.8.3 Opportunities:

Expansion of business in local areas

Doctors advice such as physical fitness

Business acquisition of local traders

Massive warehouses provide an opportunity to store surplus stock

2.8.4 Threats:

Entrants of New competitors

Improductive labors

Downfall of bicycles due to increase in use of motorcycles.

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CHAPTER-3

RESEARCH DESIGN

3.1 Review of Literature

3.2 Statement of the Problem

3.3 Objectives of the study

3.4 Scope of the study

3.5 Research Methodology

3.6 Sampling

3.7 Plan of analysis

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RESEARCH DESIGN

3.1 Review of Literature:

3.1.1 An Article Discovering the real India on Bicycle published

by The Hindu on july 19 2018:

Speaking to The Hindu on Wednesday during his visit to the textile town of Pedana on the 327th day of his mission to cover 21,000 km across India on bicycle, Mr. Ankit, 29, said: “Aiming at learning about the real India, I have started the cycle expedition to cover 21,000 km in five months. At this juncture, after covering 12 States, including Jammu & Kashmir, and six Union Territories, my mission will have no deadline until I cover Nepal and Bhutan.”

He said: “I do not have any plan how and when my India tour completes and am prepared to deal with any uncertainty. The quality of life, happiness index and eco-friendly agri-practices in Nepal and Bhutan are a few curious things to extend my cycling trip to the neighbouring countries.”

Hailing from Jaipur in Rajasthan, Mr. Ankit was a freelance travel and content writer. “At the end of the day of my expedition, the distance travelled by bicycle may set a record (Guinness). On the other hand, I am documenting the everyday life of people from different walks of life in Indian society. I am planning to create an online ‘open learning source on India’ by documenting my experiences, photographs, videos, people engaged in different missions, rural life, arts and crafts and people associated with them”, added Mr. Ankit.

3.1.2 An Article Premium Bicycle to Grab 7% of the Market

published by Business Economics on 16 th Sept 2016:

The Indian bicycle market is expected to grow significantly in the near future due to increasing adoption of premium bicycles apart from standard ones, according to the India Bicycle Market Outlook, 2021. The entry of foreign firms will be a propellant. The major domestic companies like Hero Cycles, TI Cycles, Avon

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Cycles, and Atlas are making efforts to grab the market through intelligent innovations in this segment.

According to the bicycle makers lobby, only 90 out of 1,000 people in India own bicycles, compared with 149 out of every 1,000 in China and 400 out of every 1,000 in the US. The Indian bicycle industry is also facing serious challenges in terms of meeting the domestic demand and staying competitive globally. Though being the second largest cycle manufacturing country, India accounts for a small portion of the global bicycle sales’ market.

I.K.Rohit, CEO and Co-Founder of ChooseMyBicycle.com, informed BE, “The Indian market for bicycles has been changing rapidly over the past decade. The consumer’s preferences across age groups have seen a dramatic shift which has forced the industry to accelerate its innovation, design and technology, while keeping in mind that India has always been a price sensitive market. The key dynamics that drive and determine the Indian bicycle market are innovation along with price.”

3.1.3 New York, NY -- (SBWIRE) published by Digital Journal on 10/31/2017:

The report gives an idea on the pricing analysis of various products available in the bicycle market such as roadsters, mountain cycle, lifestyle cycle, ladies cycle, gents and kid's cycle. India bicycle market consists of domestic as well as international players. India has been witnessing a slow growth since last decade in bicycle industry. Rising disposable income, rapid urbanization and massive growth in infrastructure led to increase in the vehicular population in India which hindered the growth of bicycle market. However, the market is now showing positive growth from last two years. Rural consumers are the key end users of bicycle as in rural area bicycle is one of the most important modes of transportation for middle and low income groups. Key features of bicycle such as environment-friendly and health-friendly are driving the demand of bicycles in urban India. At present, the trend of premium bicycle is emerging in urban India and hence all the domestic players are making efforts to grab the space in this fast growing segment.

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According to "India Bicycle Market Outlook, 2021", bicycle market size crossed INR 5000 crore mark in 2015. The market is now expected to grow at a healthy rate in the forecast period due to increasing adoption of premium bicycles apart from standard ones. Entry of foreign firms has become easier and thus many international bicycle companies have existence in the Indian market. This has led to immense competition between international and domestic players. The low penetration of bicycle in India attracts various global firms through serving greater opportunities for international players. The key domestic players such as Hero Cycles, TI Cycles, Avon Cycles, and Atlas are making efforts to grab the market through innovation and premiumization in bicycles. However, Indian bicycle industry is also facing some serious challenges in terms of meeting the domestic demand and staying competitive globally as domestic players are getting tough competition from Chinese players. Though being a second largest cycle manufacturing country, India has a very low penetration of bicycles as compared to other countries.

3.2 Statement of the Problem:

Bicycle market in Adoni town is huge where a number of dealers are available with different brand authorizations but the real issue with premium bicycles is that only a few number of customers are interested in buying it. Hence I'm carrying out this study to explore the potentiality of premium bicycle market, how the market situation can be improved in and around Adoni.

3.3 Objectives of the study:

To understand the current market situation for premium bicycle in and around Adoni town.

To understand the current sales position of local dealers for premium bicycles.

To study and understand the marketing strategies adopted by the local dealers for creating awareness about premium bicycles.

To understand the customer perspective and willingness to purchase a premium bicycle.

To know about the customer perception on Premium Bicycles.

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3.4

Scope of the study:

The scope of the study is to understand and analyse the market potential of Premium Bicycles in and around Adoni town. The data which a researcher collected by customers of JAIHIND CYCLES and peoples of Adoni town through questionnaires helps dealers to improve their service quality as well as to make changes in an organisation which will effect negative in future.

3.5 Research Methodology:

Research Methodology is an approach to methodically take care of the examination issue. It might be comprehended as an investigation of concentrate how examine is done logically. In Research Methodology we ponder different advances that are commonly received by a specialist in concentrate this examination issue alongside the rationale behind them. It is fundamental for the specialist to know the examination strategies/procedures as well as the system. Scientists need to comprehend the suspicions fundamental different strategies and they have to know the criteria by which they can choose certain systems and techniques appropriate to specific issues. This implies it is vital for the specialist to structure his procedure for his concern as the equivalent may vary from issue to issue. Research Methodology has numerous measurements and research strategies do establish a piece of the examination philosophy. The extent of Research Methodology is more extensive than that of research techniques. Accordingly, when we discuss look into philosophy we discussion of the exploration strategies as well as consider the rationale behind the strategies we use with regards to our examination think about and clarify why we utilize specific strategy or procedure so inquire about outcomes are equipped for being assessed either by specialist himself or independent from anyone else.

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3.6

Data Collection Methods:

The study is based on both primary and secondary data. For the present study, the data has been collected in the following ways.

3.6.1 Primary data:

Primary data is collected through interviewing the respondents and taking their responses through a questionnaire issued to them. The researcher can expect straight answers to the questions. The respondents are informed about the significance of the study and requested to give their fair opinions.

3.6.2 Secondary data:

Secondary data is collected through the company websites, news articles, catalogues and sales record of various bicycle stores.

3.7

Sampling:

3.7.1

Sampling Size:

The sample size is 64

3.7.2

Sampling Area:

The survey has been conducted in and around Adoni town with respect to bicycle dealers.

3.7.3

Sampling Technique:

Non-random sampling, where samples are not chosen randomly but on the basis of convenience.

3.8

Plan of analysis:

The data will be analysed by the statistics data provided by the responders in the questioner.

The data analysis will be represented in tabular form and various graphical representations charts such as bar charts, pie charts, diagrams.

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CHAPTER-4

DATA ANALYSIS & INTERPRETATION

28

DATA ANALYSIS & INTERPRETATION

4.1 Did you ever own a Bicycle?

Table-1

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

YES

55

86

NO

6

9

MAY BE IN FUTURE

3

5

TOTAL

64

100

Graph-1

RESPONDENTS

120 100 80 60 40 20 0 YES NO MAY BE IN FUTURE TOTAL NO
120
100
80
60
40
20
0
YES
NO
MAY BE IN FUTURE
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The study shows that respondents are owing bicycle or not. Sso, it can be seen that 86% of peoples owing bicycles in Adoni, 9% of peoples have not own a bicycle and 5% of peoles wants to purchase bicycle in future.

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4.2 For what purpose are you intended to purchase the Bicycle?

Table-2

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

Style

8

13

Health

27

42

Transport

9

14

To promote

   

pollution free

20

31

environment

TOTAL

64

100

Graph-2

RESPONDENTS

120 100 80 60 40 20 0 Style Health Transport To promote TOTAL pollution free
120
100
80
60
40
20
0
Style
Health
Transport
To promote
TOTAL
pollution free
environment
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above graph shows that for what purpose respondents intend to purchase the bicycle so, it can be seen from above table that 13% of respondents purchase bicycle for Style, 42 % for Health, 14 % for transport from one place to another and 31 % of peoples to promote pollution free environment.

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4.3 If you want to purchase a Premium Bicycle which brand will you prefer?

Table-3

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

HERO Sprint Pro

33

52

Hercules Montra

20

31

Firefox

4

6

MACH CITY

2

3

Other

5

8

TOTAL

64

100

Graph-3

Respondents

120 100 80 60 40 20 0 HERO Sprint Hercules Firefox MACH CITY Other TOTAL
120
100
80
60
40
20
0
HERO Sprint
Hercules
Firefox
MACH CITY
Other
TOTAL
Pro
Montra
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above charts shows that 52% of peoples would like to purchase Hero Sprint Pro bicycle, 31% of peoples go for Hercules Montra, 6% go for Firefox, 3% go for MACH CITY and the rest of 8% of peoples like to purchase premium bicycles apart from these companies.

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4.4 What range of Premium product are you willing to buy?

Table-4

RESPONSES 7000-11999 12000-19999 20000-34999 Above 35000 TOTAL NO OF RESPONSES 43 13 4 4 64

RESPONSES

7000-11999

12000-19999

20000-34999

Above 35000

TOTAL

NO OF

RESPONSES

43

13

4

4

64

7000-11999 12000-19999 20000-34999 Above 35000 TOTAL NO OF RESPONSES 43 13 4 4 64 % OF

% OF NUMBER OF RESPONSES

67

21

6

6

100

Graph-4

RESPONDENTS

120 100 80 60 40 20 0 7000-11999 12000-19999 20000-34999 Above 35000 TOTAL NO OF
120
100
80
60
40
20
0
7000-11999
12000-19999
20000-34999
Above 35000
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above table shows the willingness of customers to buy the Pemium Bicycle in and around Adoni.So that 67% of peoples are willing to buy Premium Bicyle between 7000 to 11999, 21% between 12000 to19999, 6% between 20000 to 34999 and the rest 6% of peoples are willing to buy Premium Bicycle above

35000.

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4.5 Does having a Premium Bicycle in Adoni act as an opportunity for status?

Table-5

 
 

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

YES

33

52

NO

4

6

MAY BE

27

42

TOTAL

64

100

Graph-5

 

RESPONDENTS

120 100 80 60 40 20 0 YES NO MAY BE TOTAL NO OF RESPONSES
120
100
80
60
40
20
0
YES
NO
MAY BE
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above chart shows the customer perception about Premium Bicycles. 52% of peoples believes in having a Premium Bicylcle as an opportunity for status, 6% of peoples are against this and rest of 42% were saying may be it acts as an opportunity for status.

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4.6 Which model a Premium Bicycle feasible?

Table-6

do you

think is

more

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

Geared

23

36

Non Geared

7

11

Lightweight

18

28

Fancy

16

25

TOTAL

64

100

Graph-6

RESPONDENTS

120 100 80 60 40 20 0 Geared Non Geared LightWeight Fancy TOTAL NO OF
120
100
80
60
40
20
0
Geared
Non Geared
LightWeight
Fancy
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above table shows the interest of customers in different models of Premium Bicyles. 36% of peoples would like to purchase geared model, 11% Non geared Model, 28% Lightweight bicycles and rest of 25% customers go for fancy bicycles.

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4.7 How satisfied are you with the existing bicycle stores in and around Adoni town?

Table-7

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

Delighted

18

28

Satisfied

26

41

Good

18

28

Average

2

3

Not Satisfied

0

0

TOTAL

64

100

Graph-7

RESPONDENTS

120 100 80 60 40 20 0 Delighted Satisfied Good Average Not Satisfied TOTAL NO
120
100
80
60
40
20
0
Delighted
Satisfied
Good
Average
Not Satisfied
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above charts reveals the satisfaction of customers on existing bicycle store in and around Adoni.So that 28 % of customers are very satisfied with existing stores, 41% are satisfied, 28% satisfaction level is good and rest of 3% customers satisfaction is average with existing stores.

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4.8 Do you think that using bicycles will result in a reduction of environmental problems?

Table-8

 
 

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

YES

52

81

NO

9

14

No idea

3

5

TOTAL

64

100

Graph-8

 

RESPONDENTS

120 100 80 60 40 20 0 YES NO No idea TOTAL NO OF RESPONSES
120
100
80
60
40
20
0
YES
NO
No idea
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above chart shows that the peoples thought about using bicycles. 81% of peoples aresaying riding bicycle will help to reduce pollution free environment probles, 14% of peoples are saying it will not help to reduce of environmental problems and the rest of 5% of peoples are not having any idea about this.

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4.9 From which channel did you get to know about Premium Bicycles?

Table-9

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

Word of mouth

14

22

Dealers

24

38

Internet

8

12

Newspapers

18

28

TOTAL

64

100

Graph-9

RESPONDENTS

120 100 80 60 40 20 0 Word of mouth Dealers Internet Newspapers TOTAL NO
120
100
80
60
40
20
0
Word of mouth
Dealers
Internet
Newspapers
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above chart reveals about through which channel customers get to know about Premium bicycle. So 22% of customers get to know through word of mouth, 38% of customers through dealers, 12% through Internet and rest of 28% of customers get to know about Premium Bicycles through Newspapers.

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4.10 Will you be interested in buying spare parts from the same store where you buy the bicycle?

Table-10

 
 

RESPONSES

NO OF RESPONSES

% OF NUMBER OF RESPONSES

YES

49

77

NO

1

1

MAY BE

14

22

TOTAL

64

100

Graph-10

 

RESPONDENTS

120 100 80 60 40 20 0 YES NO MAY BE TOTAL NO OF RESPONSES
120
100
80
60
40
20
0
YES
NO
MAY BE
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above chart shows the customer intersest on buiying spare parts of bicycle from the same store where they have purchased. So 77% of repondents reveals that YES they will buy from same store, 1% of rspondents soes not want to buy from same stores and the rest of 22% of respondents were saying that may be they will buy.

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4.11 Are you satisfied with the service provided by bicycle dealers in and around Adoni?

Table-11

 
   

NO OF

% OF NUMBER OF RESPONSES

RESPONSES

RESPONSES

YES

60

94

NO

4

6

TOTAL

64

100

Graph-11

 

RESPONDENTS

120 100 80 60 40 20 0 YES NO TOTAL NO OF RESPONSES % OF
120
100
80
60
40
20
0
YES
NO
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above chart shows the customer satisfaction with the services provided by bicycle dealers in and around Adoni. So, 94% of customers are satisfied with services of local dealers which is huge number and the rest of 6% of customers are not satisfied with the dealer services.

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4.12 How does the idea of a multi-brand Premium Bicycle store sound to you in Adoni?

Table-12

   

NO OF

% OF NUMBER OF RESPONSES

RESPONSES

RESPONSES

Very Good

36

57

Good

25

39

Average

2

3

Bad

1

1

Very Bad

0

0

TOTAL

64

100

Graph-12

 

RESPONDENTS

120 100 80 60 40 20 0 Very Good Good Average Bad Very Bad TOTAL
120
100
80
60
40
20
0
Very Good
Good
Average
Bad
Very Bad
TOTAL
NO OF RESPONSES
% OF NUMBER OF RESPONSES

Interpretation:

The above charts shows the opion of Adoni poeples about the idea of a multi- brand bicyle store how sounds to them. So that the 57% of cutomers were saying its is a very good idea, 39% of cuctomers opinions were good, 3% average opinions, and 1% of customers given a negative opionion that it’s not a good idea to start multi-brand store in Adoni

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CHAPTER-5

SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

41

5.1

Findings:

Maximum number of customer’s focus point relies on price rather than Premium Bicycles.

In the rural setting of adoni region wherein people lack necessary information regarding upbeat trends fail to acknowledge premium bicycles

By seeing lack of interest of customers in premium bicycles, dealers are not interested in much promotional activities.

Still there are vast opportunities ahead

Looking at the price point of Premium bicycles local customers find purchasing a entry level motobike more feasible than the former.

I have also found that dealers go to next extent in promotional activities by giving away free bicycles to charitable events and that eventually helps to increase goodwill.

5.2 Suggesstions:

I would like to suggest the dealers to carry out educational and promotional activities in Adoni to make people aware of benefits of Premium bicycles.

To make it affordable for customers dealers should introduce easy EMI facilities.

People will be more interested in purchasing Premium bicycle if the dealers extend the service lineup.

Dealers should be willing to keep Premiuim bicycles in their store despite of low sales risk so that customersget attracted by seeing various new models when they arrive at the store.

Recriutment of skilled labor for servicing premium bicyles should be encouraged so that due to better services customers will be attracted to purchase premium bicycles.

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5.3 Conclusion:

By compiling this report I have come to a conclusion that Adoni area has great potentially untapped market relating to Premium bicycles but necessary measures shall be undertaken by the dealers to improve the Human Resourse neccesities for well functioning of this section and educate the customers about the benefits of possessing a Premium bicycle and then im sure the sales numbers will surely shoot up in the near future.

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