TI Bicycle – Case Analysis

Presented By:
Group 1
 Problem Statement


Growth Strategy – How to attain profitable

and sustainable growth?
 TI Cycles - SWOT
Strengths Weakness
Extensive Dealership in bigger towns 1- Partial dealership presence – smaller
10L towns and rural
Market Leader – South India Sales force reluctant on “Standard”

Innovations – Special Category, Cyclinics High operation cost – Integrated nature

Market Research based NPI and high wages

Product divisional org structure After sales service

Established Brand name

Opportunities Threats
Domestic Bicycle market density still low Duties and tariffs in international
(1 in 100) market
Growing Youth Segment Competitors – 10% Cost differential

Mid and High Income group growth Substitute – Mopeds and Scooters

Positioning as a recreational product Improvements in Infrastructure

Customer Needs
•Rural and Semi Urban Market
•
–Economic Bicycle
–Sturdy and Durable

•Urban
•
–Variety
–Style
–Unique Experience
–Lifestyle Statement
Current Product Mix

• Standard Bicycles


• Special Bicycles
– SLR
– MTB
– Kids
– Juveniles
–
• International Bicycles
Standard Bicycle – Current STP
• Targeted Segments
– Geographic
• Semi Urban
• Rural
– Demographic
• Age - 20Yrs+
• Gender – Male
• Income – Lower to Lower Middle
– Psychographic
• Social Class – Blue collar workers


 Positioning – Strong and Sturdy life

companion



Standard Bicycle – Current
Issues
• Higher Cost
•
• Low Focus on standard bicycle
•
• Inept Positioning
•
• High competition
•
• Demotivated Dealers
 Standard Bicycle – Proposed
Strategy
• Microfinance for Lower income group


• Make standard bicycle more attractive

– Diversified Colors
– Add useful Accessories


• Make standard bicycle for females.



• Give freebies with basic bicycle – as tube, basket etc.



• Build stronger dealer network in rural and semi urban area



• Conduct road shows/street plays in villages and small

towns


• Give monetary incentives to Dealers

 Special Bicycles - Current STP
Product Target Segment Positioning

SLR Urban (Girls) Stylish and trendy

MTB 12-15 years outgoing “My Bike”

urban
Juniors Urban Kids -

Juveniles Urban -

Current Scenario Challenge

•38.47% market Maintain Market

share Leadership & Growth
•Leaders in SLR &
MTB
 Special Bicycles – Proposed
Strategy
Value Proposition
Product Target Segment Positioning Differentiation

SLR Urban + Upper Rural Sophisticated , Cyclinics

Trendy Exclusive Dealers
MTB 12-15 years outgoing “My Bike” +
urban Build Your own
Bike
MTB Adventure Loving, Strength, Game +
(Geared) Youth for Challenge Cyclothon Club

MTB Urban Adults (working / Exercise partner

(Fitness) family)
Special Bicycles – Proposed
Strategy
• Expand into North, West and East through
special promotions


• Promote Exclusive Dealership to create

value across brands


• Regional Centers
– Build Your Cycle (Capabilities for
customized service, quick painting,
welding etc)
•
International Market Position
• Exports falling - 40%


• Environmental Factors
– Falling demand in Europe
– Unfavorable tariff structure
– High prices – High manufacturing cost
– Currency fluctuations
–

 International Market - SWOT
Strengths Weaknesses
Technology and attitude for producing Insufficient design and manufacturing
international quality products capabilities for hi –end bicycle


 Order tracking


 Tie-up with international suppliers

Opportunities Threats
 Large potential market in USA, Europe Price competitiveness of Chinese
bicycles
International Market – What
Next?
• Continue export ?
– No.


• WHY?
– Standard Cycle: Cannot compete with
Chinese low cost cycles
– Special Cycles: Insufficient design and
manufacturing capabilities


• Alternative
– Technological collaboration with
International Players- Import

 Overall Strategy Mix
Competitive Advantage
High Low

High Imported
Urban Youth Ladies –
High- end
Semi Urban – Standards
bicycles
High Income Bikes
market
Market
Segment Men –
Attractiven Standard bike Juvenile –
ess Ladies – Kids
Special Bike

International
market
Low
 Proposed Value Proposition
Price
More The same Les
s

More More for the More for

More
for More same less
Benefit

The same
The same
s

for less

Less for
Les much less
s
Conclusion
• Reposition Standard Bicycle in Rural and
Semi urban market
•
• Provide customer delight with Special
Bicycles and target new segments


• Serving niche market with high end

international Bikes
•
•
Happy Cycling