Ti Cycles

External environments:

Customers: The youth segment was believed to grow by 20,000 per month which constitute

35% of bicycle market. The taste and preference of youth changes regularly so TI Cycle has to

give more focus on the youth.

Government: The import duties were increased by the European countries and the devaluation

of Chinese currency has adversely affected the exports' sale of TI CYCLE.

Competition: New competitors were entered in the market with introduction of low price

bicycles in the market. The entrance of new competitor has reduced the market share of TI

Cycles and there is also a competition of TI Cycles with the motorized two-wheeler mopeds. So,

Competitors had a great influence on the sales of TI Cycles.

Options Mr. Ramkumar can adopt

1) To increase the sale in northern India: With the entry of Hero cycles, Avon, and Atlas

cycles, the cycle market scenario in India changed dramatically, TI cycles being the

prime sufferer. The low-cost and load bearing capacity being manufactured by the

competitors caught the attention of the people. These companies were quick to make their

image in youth and children segment and were successful in bringing out cycles targeting

this segments .TI somehow adopted a second league and in this process lost the crucial

timing and market share. The company therefore should upgrade its R&D and ensure that

the marketing cell also adopts proactive approach. And also the other competitors have

their own shops which give benefit to them and help them to improve their sales. We can

also compare from the data and see that the market share of TI in southern side is 43%

which is nearby half of the total market share where as in the western and eastern India,

TI also has good market share than northern India which is an average of 19% and in

northern India, TI has only 4% market share.

45%

4% 24%

27%

Market Shares

North

31%

36%

18%

15%

West

39%

18%

43%

South

53%

7%

22%

18%

East

Hero

Atlas

TI

Others

TI & its Competitors

A Geographic representation

2) Rural area can become an important segment: TI cycle has mainly focused into urban

area, TI cycle has the market share of 35% in urban area where as in rural area, and TI

cycle has only 15% of market share. To improve the performance in rural area, TI cycle

should improve the distribution network into rural area. Also TI cycle should provide

cycles in rural area at low price.

15

27

35

30

0

10

20

30

40

50

60

Rural Towns(<1 Lakh) 1-10 Lakh 10 Lakh+

Hero

Atlas