44061417 atlas project

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MASTER IN

BUSINESS ADMINISTRATION

“COMPREHENSIVE RESEARCH & ANALYSIS OF MARKETING

STRATEGIES OF ATLAS CYCLES VERSUS COMPETITORS”

INDUSTRY GUIDE: SUBMITTED BY:

Mr. Rahul Mathur Sanjay Chopra

(Sales Manager) MBA-IB (2009-2011)

1MIMT SANJAY CHOPRA

Roll No. : 0915270094

MANGALMAY INSTITUTE OF MANAGEMANT AND TECHNOLOGY

GREATER NOIDA, UTTAR PRADESH

CERTIFICATE OF ORIGIN

This is to certify that Mr. SANJAY CHOPRA, a student of Post Graduate Degree in MBA (2009-2011), Mangalmay Institute of Technology And Management, Greater Noida has worked in the ATLAS CYCLES (SAHIBABAD) LTD., under the able guidance and supervision of Mr. RAHUL MATHUR, designation--Sales Manager, ATLAS CYCLES (SAHIBABAD) LTD. The period for which she was on training was for 8 weeks, starting from 19ND

June to 10ND Aug. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in Master in Business Administration. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

2MIMT SANJAY CHOPRA

Signature Signature

(Faculty Guide) (Student)

3MIMT SANJAY CHOPRA

ACKNOWLEDGEMENT

For every opportunity may God be thanked.”

I express my sincere thanks to ATLAS CYCLES (SAHIBABAD) LTD. for giving me an opportunity to work with them through this summer project.

I express my sincere gratitude to my industry guide Mr. RAHUL MATHUR Sales Manager, ATLAS CYCLES (SAHIBABAD) LTD., for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Marketing Deptt. for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Mr. Sandeep Sharma of my institute, for her continued guidance and invaluable encouragement.

Signature(Student)

4MIMT SANJAY CHOPRA

CHAPTER 1

EXECUTIVE SUMMARY

1.0 EXECUTIVE SUMMARY

People don't care how much you know until they know how much you care - about them and their problems." Robert Cavett –

With an annual turnover of more than 12 million bicycles, the bicycle industry is one of the most established industries in India. It has raised the country's position to that of the second largest bicycle manufacturer in the world, next only to China. India has seen a tremendous increase in the number of bicycle manufacturers and bicycle exporters in the recent past. Today, the Indian bicycle manufacturing and bicycle spares industry is well accepted and is also widely recognized for its quality standards in international markets. There is a significant scope for export of Indian bicycles, bicycle spare parts and bicycle accessories. The approximate export and import figures of bicycle for the year 2005-06 are Rs.111.68 crore and Rs. 20.06 crore, respectively. The total production of all kinds of bicycles in the organized sector has been 82.68 lakh numbers during the year 2005-06. The industry has been delicensed and is allowed 100 per cent FDI under automatic approval.

Total number of units producing Bicycles in India

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Total No. of Units in Bicycle 4125and parts

No. of Units in Organized Sector 674

No. of Units in Small Scale Sector 3451

Concentrations of Units In India Hero Honda, Tube Investments of India, Atlas Cycles, Hamilton Industries, RMI Cycles, National Bicycle Corp. Of India.

Most bicycle components, spares and bicycle accessories in India, except for free wheels and single piece bicycle hubs, are manufactured by the Small Scale Sector (SSIs), while the large scale units are permitted to manufacture bicycle frames, chains and rims for captive consumption. Manufacture and export of complete bicycles falls within the purview of the Organized Sector. The Indian bicycle industry is currently in the midst of making endeavors for enhanced and increased bicycle exports since the scope for export of Indian manufactured bicycles in the international market is significant. As per public reports the present level of exports falls within the range of Rs. 150 crores. This includes Bicycles, bicycle spare parts and bicycle accessories.

A popular means of transportation in various areas of the world today, the bicycle actually evolved from a little wooden horse with a fixed front wheel, in France in the 1790's. This model was improved in Germany in 1817, by Baron Karl von Drais. The model for the modern bike was the "safety bicycle", invented in England in the early 1880's, with a chain, sprocket driving rear wheel and equal sized wheels. The years that followed saw the further development of the bicycle with pneumatic tires, two and three speed hub gears, and the dérailleur gears, which was the last major innovation of bicycle design until the 1970's. Bicycles today offer more than just the simple pleasure of cycling. From fitness and trekking to racing, bicycles today cover a much broader spectrum of activities than in the days of their predecessors.

To face the challenges of global competition, a thrust on quality and constant innovation has been an integral part of the philosophy of Atlas. This stress on detail has resulted in Atlas taking a proud place amongst the well known brands in the world.

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Domestic success led to international acclaim. Today, Atlas cycles as well as components are exported to over 35 countries, among them advanced countries like Italy, Holland, U,K., Japan and Australia.

Recognized as leaders of the bicycle world, it was the next step for Atlas to start exporting expertise, lending know-how, and setting up bicycle plants in several countries. A company inspired by grit and nurtured by the will to excel. Atlas Cycle Industries Ltd. is today racing along in the fast track of success. Inspite of the fierce competition from TUBE INVESTMENTS, AVON, HERO, HAMILTON, RMI INDUSTRIES, and many more the ATLAS CYCLES (SAHIBABAD) LTD, has been able to a fair market share and is still the leader for the bicycle industry. My main objective is to determine the marketing strategies of Atlas Cycles and the competitors and to do the comparative analysis, and target on the potential customers and which model of that segment to follow up and thereby suggesting the company to attack which segment.

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8MIMT SANJAY CHOPRA

Research Methodology

PRIMARY OBJECTIVE

The main objective of the project is

To study the marketing strategies of Atlas Cycles and to compare them with its competitors for the year 2008-09

SECONDARY OBJECTIVE

To find consumer awareness about various Atlas Cycles brands in the market.

To study the perception of the consumers about Atlas Cycles Brands vis-à-vis other brands.

Forecasting its potential for the upcoming years. To determine those strategies which can be the potential

strength for the industry in the upcoming years and thereby suggesting ways to increase the market share of the company.

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PROBLEM DEFINITION

Over the last few years the bicycle segment has undergone a major change which is creating direct impact on potential markets. So in the process the company has experienced high degree of fluctuations in their market share.

NULL HYPOTHESIS

Hypothesis 1 (H o) : Atlas performance in Fancy segment will eventually help company to obtain No-1 position in the overall bicycle segment.

Hypothesis 2(H o): Atlas provide complete satisfaction and services to its customers.

ALTERNATE HYPOTHESIS

Hypothesis 1 (Ho): Atlas performance in Fancy segment will not help company to obtain No-1 position in the overall bicycle segment.

10MIMT SANJAY CHOPRA

Hypothesis 2(H o): Atlas do not provide complete satisfaction and services to its customers.

RESEARCH DESIGN

“Research is common parlances refer to a search for knowledge.”

Explanatory & Conclusive Research

As the term suggests, provides insights and comprehension of the problem. We develop the hypothesis rather than testing it. This type of research design is tentative and the type of research is qualitative in nature. The outcome is that the findings are followed by further research which has to be concluded. It aims at exploring in order to find out trends and shifts in consumer patronage pattern.

Explanatory research is often conducted because a problem has not been clearly defined as yet, or its real scope is as yet unclear. It allows the researcher to familiarize him/herself with the problem or concept

to be studied, and perhaps generate hypotheses to be tested. It is the initial research, before more conclusive research is undertaken. Explanatory research helps determine the best research design, data


collection method and selection of subjects, and sometimes it even concludes that the problem does not exist!

Another common reason for conducting explanatory research is to test concepts before they are put in the marketplace, always a very costly endeavor. In concept testing, consumers are provided either with a written concept or a prototype for a new, revised or repositioned product, service or strategy.

Explanatory research can be quite informal, relying on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.

The results of explanatory research are not usually useful for decision-making by themselves, but they can provide significant insight into a given situation. Although the results of qualitative research can give

some indication as to the “why”, “how” and “when” something occurs, it cannot tell us “how often” or “how many”. In other words, the results can neither be generalized; they are not representative of the whole population being studied.

Conclusive Research is the type where one tests the hypothesis and comes to a conclusion. This research is concrete and final. The type is qualitative in nature. The findings are final and used for decision making by the managers. Since this research describes the market characteristics or phenomenon etc ,this is descriptive in nature and here we test the hypothesis which has already been formed in the explanatory research where job is to collect the primary data.


The research that has been undertaken here is a combination of explanatory and conclusive research. In the first part of the research, primary data has been collected from the market and then a hypothesis has been formulated based on the data. In the second part, the already developed hypothesis is tested with the help of sampling and statistical tools and a conclusion is arrived at.

Sample design

Sampling may be designed as the selection of some part of an aggregate or totality on the basis of which judgment or interference about the aggregate or totality is made. It is the process of obtaining information about an entire population by examining only a part of it in which generalizations or influences are drawn on the samples about the parameters of populations from which the samples are taken.

The study was restricted to Noida, Sahibabad, and Ghaziabad regions only keeping in mind convenience to sample because of accessibility lack of abundance of time and cost and because of the fact that the population of these cities is composed of people of diverse background income level etc., the sample were chosen on the basis of convenience sampling.


The sample size taken for the purpose of study is 100. For this purpose customers were contacted at their working places and homes.

SCOPE OF THE STUDY

1) By undertaking this project we shall be able to understand the total Bicycle Industry, their marketing

strategies and along with it the directly proportional Atlas Cycle, a company which is making its presence in the international markets.

2) How much is the market potential of the Atlas Company

3) How the company has to diversify itself and its strategies for the new Business opportunity in this sector.


LIMITATIONS OF THE PROJECT

1) The survey was restricted to Noida, Gaziabad and Sahibabad because of time and resource constraints. Therefore the generality of the findings cannot be claimed until further research has been carried out.

2) The location of study was selected keeping the convenience factor in mind.

3) All the data has been collected from the net. So we can’t verify the extent the data is true and whether it has been put on the net by satisfying all the criteria which should be done before putting it on net.

4) The situation in which person is questioned about routine action is an artificial one at best due to the influence of questioning process, respondents may furnish quite different from facts.

5) The respondents are chosen through convenience.

6) It is also pretty hard to pursue customers and retailers to share their findings as they are in hurry so possibility of bias of the respondents may not be precluded.

7) The Software used for data analysis is SPSS , which being a little cumbersome, some graphs have to be further explained and clarified using the annexure.


CRITICAL REVIEW OF LITERATURE

With changing consumer preferences, the Indian Bicycle Industry is booming increasingly competitive.

Consumer markets today are witnessing change at a rapidly not seen before and offer new opportunities

and challenges. To stay competitive and growing, bicycle makers have to bring out newer models at

affordable rates to cater to changing customer tastes at regular intervals. Leading bicycle makers like

Atlas Cycles are endeavoring to blend the traditional and the modern by offering affordable bicycles for

all age groups across various categories.

Consumer aspirations are fast changing. Even the age-old sturdy roadster models are being given a

new look in a range of colors. Advertising and promotion have become a necessity to stay ahead in the


market. Celebrities have been signed on as brand ambassadors to help in establishing an emotional

connection with customers.

Atlas cycles, for instance, has launched Samrat, an extra sturdy bicycle for the masses in the

roadster segment. Noted film star Sunil Shetty, the brand ambassador for Atlas roadster range of bicycle

features in the launch advertisement campaign of Samrat. Especially designed for Orissa, North Bihar and

U.P. markets, the unique feature of Samrat is its center pull brake system along with heavier side stands,

an extra coat of paint and extra strong tyres. These features will give added support to the rider and help

withstand adverse weather conditions and would have increased longevity.

In present Scenario, Atlas Cycles has always taken lead and acted as a change agent in Indian panorama.

Upto the decades of eighties leather saddle was liked and used in many of the Indian states. In the last


decade’s availability of leather started seriously shrinking affecting bicycle sale adversely. At the point of

time the late President of Atlas Cycles Mr B D Kapur took lead and introduced PVC saddle top as

substitute of leather. Though, initially it met with resistance but by today PVC saddle top almost

substituted leather saddle effectively. Atlas Cycles is highly pro-active towards environment conservation

& preservation. Atlas Cycles, Sonepat has been participating and representing in United Nations

Organisation at different platforms of CleanerProduction, Global Compact, etc to raise Indian bicycle

industries concerns at international level.

The market growth in cycle industry is seeing an all time low in recent times. Hit badly by increase in

price rise of steel and raw material, it has become difficult for masses to cope with general price

increase in Roadster segment, which is normally a mode of conveyance for consumer.


Keeping in view the changing trend the company is reviewing its approach to consolidate its position in

the fancy/sports segment of bicycles. The series is to targeted towards age group of 3-5 years, 6-10

years and 12-15 years of kids and youth respectively. This has been done keeping in mind the radical

change the bicycle industry is going through. The research & development of Atlas is working to cope

up for this big shift from roadster to fancy segment. Atlas is also looking forward for ‘backward

integration’ for its steel tube plant based in Gurgaon and has plans to enter other allied field of bicycles.

With major globalization taking place, Atlas is also planning to diversify into other FMCG products for

which talks are in advance stages for international tie ups. Hence in future, Atlas apart from efforts to

bring its turnover to 600 crore by March 2007, would also focus to gain momentum, work on fiscal

consolidation & doubling growth prospect in next two years. The expansion is aimed to be a

Multiproduct Company.


Atlas Cycles Sahibabad registered a 70.59% growth in net profit to Rs 5.8 million for the quarter ended

June 2007 from a profit of Rs 3.4 million for the quarter ended June 2006. The newer fancy bicycle

segment has also managed to create a strong presence in the market with a high growth rate of over

15%. Newer models in arrange of attractive designs and colors catering primarily to middle class

youngsters in schools and colleges are being introduced in this segment. These include Stud , Tank,

Nucleus, Inferno, centre Shox, Formula-I , ,Velocity, Vogue, Pacific(Sr. & Jr), Double impact, Turbo, Dove,

Spice-G, Swan, Monalisa and Minica.

In addition to the above, the children’s bicycle segment has also shown upward trends in terms of

sales and popularity. The opportunities within this segment are tremendous and it is fast becoming one of

the key focus areas of bicycle majors. Targeted advertising campaigns are also being developed to

attract the immediate attention of children.


Aiming to further increase its presence in the children’s bicycle segment, Atlas Cycles (Sahibabad) Ltd.,

India’s leading bicycle maker has recently launched its new range of children’s bicycles-Atlas Lil Devils

Series. Affordably priced at Rs 1000/- to 1200/-, the series includes four models – Atlas Chunmun , Atlas

Simba, Atlas Crazy Toons and Atlas Beetle. The bicycles are available in a host of attractive colors and

designs.

With all these changes, the Industry seems to be coming of age with changing consumer tastes.

Fuelled by high levels if media exposure. Today’s consumers young or old seem to accept change more

easily than they previously did. More dispensable income with the younger population is driving most

business. The challenge for all of us would be to keep cycling and bicycles firmly in consumer’s minds and

consideration set as not just a poor man’s vehicle but as desirable companion for all age groups. The road

ahead is long but with increased focus on R&D , machinery and distribution channel upgradation with


better image management it won’t be long before India will make a mark for itself in the fancy bicycle

segment in the international markets.

Indian bicycle industry

Is the second largest bicycle producer of the world

Is allowed 100 per cent FDI under automatic approval.

Is also widely recognized for its quality standards in the international market.

The future growth drivers:

Higher GDP Growth

Increasing Road Development

Conservation of fuel and money if gasoline prices rise.

Export will continue to be the biggest growth sector.

Replacement of aging four wheelers


Growing concept of second vehicle in urban areas.


INDUSTRY AND COMPANY

PROFILE

INDUSTRY PROFILE

The global bicycle industry, including bicycles, parts and accessories, is estimated to have total retail

sales in excess of $20 billion. The bicycle manufacturing segment of the industry produces approximately

100 million units per annum. (Source: Derby Cycle Corporation annual accounts, April 2001).

In 2000, world production of bicycles exceeded 101 million units. 41 million cars were produced

worldwide. (Source: http://www.earth-policy.org )


As recently as 1965, world production of cars and bikes was essentially the same, with each at nearly 20

million, but as of 2003 bike production had climbed to over 100 million per year compared with 42 million

cars. Bicycle production was 105 million units globally in 2004, a 1.5% increase over 2003 (WorldWatch

Institute).

The world produced an estimated 130 million bicycles in 2007—more than twice the 52 million cars

produced. Bicycle and car production tracked each other closely in the mid-to-late 1960s, but bike output

separated sharply from that of cars in 1970, beginning its steep climb to 105 million in 1988. Following a

slowdown between 1989 and 2001, bike production has regained steam, increasing in each of the last six

years. Much of the recent growth has been driven by the rise in electric, or “e-bike” production, which

has doubled since 2004 to 21 million units in 2007. Overall, since 1970, bicycle output has nearly


http://www.worldometers.info/cars/

quadrupled, while car production has roughly doubled. (Source: http://www.earth-policy.org )


From 2006 U.S. Census data, as reported at Go Bike Boulder.


http://www.gobikeboulder.net/

In a survey of larger cities, Portland, OR had the highest

percentage of bike commuters at 3.5 percent. Nationwide, the share of commuters biking to work in 2006 was 0.4%.


Total No. of Units in Bicycle and parts 4125

No. of Units in Organised sector 674

No. of Units in Small Scale sector 3451

Concentrations of Units in India

Most of the factories manufacturing

bicycles and parts are located in Punjab

and Tamil Nadu. Major companies in this

industry are Hero Honda, Tube Investment

of India, Atlas Cycles, Hamilton Industries,

R M I Cycles, National Bicycle Corp. of

India

http://hr.blr.com/news.aspx?id=76065

In the chart, "SOV" means Single Occupant Vehicle.

Bicycles and carriages which fall under the codes 8713 attract a total import duty of 35.2 per cent. This

includes 30 per cent basic duty and four per cent special additional duty. There is no additional duty.

However, total import duty on bicycle parts, which comes under the HS code 8712 and 871491 to 871494, is

higher at 40.61 per cent. This is because of the 16 per cent additional duty imposed on these items, in

addition to the 30 per cent basic duty and four per cent special additional duty. The bicycle industry is

mostly in small scale sector since most of the components parts except free wheels and single piece

hubs are reserves for this sector. Large industries are permitted to manufacture bicycle frames, chains

and rims for captive consumption only.


MORE than two out of five Indian households own a bicycle. That's a total of more than 83 million bicycles

on the road. Assuming an average bicycle is made to last for seven years, this would mean that

replacement demand alone would add up to around 12 million bicycles each year.

The proportion of households owning a bicycle varies from a high of around 70 per cent for Punjab and UP

to a low of around 30 per cent for Goa, Karnataka, Maharashtra, Kerala and J&K.

A Look at the Bicycle Industry’s Vital Statistics

The U.S. bicycle industry was a $5.6 billion industry in 2009, including the retail value of bicycles, related

parts, and accessories through all channels of distribution, according to research funded by the National

Sporting Goods Association. For comparison purposes, we project the industry at $5.3 billion in 2002,

$5.4 billion in 2003, $5.8 billion in 2004, $6.1 billion in 2005 (an all-time high), $5.8 billion in 2006, $6.0

billion in 2007 and $6.0 billion in 2008. The recession of 2009 definitely had an impact on bicycle sales


with an overall decline approaching 20% from the previous year.Bicycle unit sales (for all bicycles, and

for those with 20-in. wheels and above) for the U.S., including both the dealer and mass merchant

channels are as follows:

Year Bicycles Sold (Millions) 20" and above wheel sizes

Bicycles Sold (Millions), all wheel sizes

2009 10.2* 14.9*

2008 13.4* 18.5*

2007 12.8* 18.2*

2006 12.7* 18.2*

2005 14.0* 19.8*

2004 13.0* 18.3*

2003 12.9* 18.5*

2002 13.6* 19.5*

2001 11.3* 16.7*

2000 11.9* 20.9*

1999 11.6* 17.5*

1998 11.1* 15.8*

1997 11.0* 15.2*

1996 10.9 15.4

1995 12 16.1

1994 12.5 16.7

1993 13 16.8

1992 11.6 15.3

1991 11.6

1990 10.8

1989 10.7

1988 9.9

1987 12.6

1986 12.3


1985 11.4

1984 10.1

1983 9

1982 6.8

1981 8.9

...1973 15.2 (record high)

Source: Bicycle Manufacturers Association, and apparent market consumption based on U.S. Department

of Commerce import statistics, and estimates of domestic market production by National Bicycle Dealers

Association and Gluskin Townley Group, LLC. * indicates projected figures

DISTRIBUTION CHANNELS

Bicycle sales are accomplished in this country through five primary and distinct channels of distribution

— the specialty bicycle retailer, the mass merchant, full-line sporting goods stores, outdoor specialty

stores, and "other," which is comprised of a mixture of retailers (including Internet sales delivered by

mail).

Department, discount and toy stores sell mostly price-oriented products. Approximately 73% of bicycle


units were sold through the mass merchant channel in 2009, but this represented 32% of the dollars due

to the average selling price of $78. This channel's market share trend line was down from 2008.

The approximately 4,200 specialty bicycle retailers feature higher quality merchandise, and also rely on

adding value through added custom services such as bike fitting, expert assembly and repair. This

channel commanded approximately 18% of the bicycle market in terms of unit sales in 2009, but 50% of

the dollars, a dominant dollar share. Dealer price points generally start at around $200, with the average

at approximately $500, though prices can range into the thousands. While the number of specialty bicycle

stores has declined in recent years due to consolidation, they are responsible for approximately the same

amount of business through these fewer (but larger) stores. This is the only distribution channel that

maintained or increased average retail bicycle selling price in recent years, although all categories

experienced price increases in 2008 due to the weak dollar. This channel's overall share was slightly up


in 2009 compared to 2008.

Chain sporting goods stores sold approximately 4% of the bicycles in 2009, and 5% of the dollars, at an

average price of $235. These are merchants that fall somewhere between mass merchant and bicycle

dealers on the spectrum, and include stores such as The Sports Authority, Champs Sports,

JumboSports, Sportmart and Big 5. This channel's overall market share was down in 2009 compared to 2008.

Outdoor specialty retailers sold approximately 2% of the bicycles in 2009, representing 5.8% of dollars

and an average retail selling price of $510. This channel is being broken out separately this year for the

first time so there is no trend line.

The "other" category sold 3% of the units, representing 5.9% of the dollars, with an average price of

$350.


Specialty bike dealers commanded the majority of parts and accessories sales, and virtually 100% of the

service market. They dominate the market in bicycles selling for $250 and up.

CYCLING PARTICIPATION

38.1 million Americans age seven and older were estimated to have ridden a bicycle six times or more in

2009, according to the National Sporting Goods Association. The NSGA has revised its numbers for

several previous years with the new numbers showing participation of 37.4 million in 2007 and 38.7 in

2008. The peak participation year was 1995, with 56.3 million participants. It should be noted that the age

limit on this number eliminates millions of young people who ride bicycles with wheel sizes 19" and under.

Cycling is often cited as the seventh most popular recreational activity in the U.S., behind exercise

walking, swimming, camping, fishing, exercising with equipment and bowling.


Bicycles and related products appeal primarily to a recreation market in the United States. NBDA

research conducted by the Bicycle Market Research Institute in 2006 reported that 73% of adult cyclists

rode for recreation, 53% for fitness, 10% for commuting, 8% racing and 6% sport. The figures add up to

more than 100% because some ride in multiple ways.

Riding for transportation is a growing market that is important for the industry because it establishes

cycling as a legitimate part of the nation’s transportation mix. The industry, as well as cyclists across the

country, have strongly advocated for streets and roads to be made more friendly to bicyclists and

pedestrians in recent years. Bicycles are important not only as vehicles to make an entire trip to work,

for instance, but also as connectors for short trips from mass transit. Several cities and companies have

instituted bike sharing programs that allow people to borrow a bike for transportation and return it later.

Bicycles are clearly much more than toys, and their combination of utility and recreation use continues to


justify support for cycling-friendly roads, trails and related facilities. Cycling facilities construction is at

an all-time high and both pedestrian and bicycle facilities have received an increasing level of support

from the government in recent years. Better facilities continue to be an important factor in the industry’s

growth, as bicycles continue to provide Americans with a clean and

healthy transportation alternative that is both practical and affordable. Bicycle use continues to be a

potential solution for improving peoples' health, as well as contributing to more livable communities.

RECENT HISTORY: OVERVIEW

The industry’s high point, in terms of unit sales, was the so-called "bike boom" in the 1970s. The boom

ended suddenly when the industry reached a rapid saturation point and did not have breadth of product

choices to sustain sales levels.


Today, the industry has a much stronger foundation, with an estimated 2,000 companies involved in

manufacturing and distributing cycling products to retailers, and approximately 150 different bicycle

brand names to choose from. A wider variety of product is being sold to a wider range of consumers than

ever before. Since the "boom," no part of the bicycle has remained unchanged, with fundamental

improvements in design and materials being the norm throughout the industry.

Today’s quality bicycles are more comfortable than ever before, the components more function-specific

and reliable, and new and exciting features are introduced regularly. This allows professional retailers

many options to match the right bike to each consumer — male or female, big or little, frequent or

infrequent rider, status-conscious or not.

The success story of the mountain bike has been the focus of much of the specialty industry in recent

years. The category has apparently matured, however, and it represented 28.5% of all bicycles sold in


the year 2008 by specialty bicycle stores, according to estimates from the NBDA (representing bicycle

stores, not mass merchants). This figure was stable from the years 2006 and 2007, and down from the

high point of approximately 60% in the boom years of the mid 1980s. However, mountain bikes continue to

be the largest single bicycle category for specialty bicycle stores. The decline may also be somewhat

misleading, because the "comfort bike" category could actually be considered a modification of the

mountain bike, and are comparable in many ways to low-end mountain bikes. "Comfort" bicycles look a lot

like mountain bikes, but feature soft saddles, more upright seating position and easier gearing than the

traditional mountain bike. The key growth area in 2008 was the

Hybrid/Cross category. These bikes are utility-oriented and the increase is being attributed primarily to

consumer reaction to high gas prices mid-year as they turned to the bicycle in order to consumer the

more costly gasoline. Retailers also reported an increase in service and repair work during this period as

people were bringing bicycles they already owned out of storage and wanted to make them road-worthy.


The unit sales trends by category are below.

Specialty Bicycle Sales By Year, Units, 2006-2009

Category

2006 Unit %

2007 Unit %

2008 Unit %

2009 Unit %

Mountain

28.5 28.0 28.5 27.8

Comfort 14.0 15.0 12.0 10.3

Hybrid/Cross

15.0 16.5 19.0 20.4

Cruiser 6.0 6.5 4.0 3.3

Road/700C

17.0 15.0 13.0 14.9

Youth 16.5 16.5 21.5 21.3

Other 3.0 2.5 2.0 1.8

Source: U.S. Commerce Department statistics, Gluskin Townley Group estimates.Source: U.S. Commerce Department statistics, Gluskin Townley Group estimates


Specialty Bicycle Sales By Year, Dollars, 2002-2004

Category2002 Retail $ (%)

2003 Retail $

2004 Retail $

2004 Avg. Price

Mountain Front Susp.

26.56 26.24 25.61 $391.31

Comfort 18.03 14.44 11.70 $332.23

Road/700C 16.40 20.79 28.32$1,152.68

Hybrid/Cross

9.89 12.87 10.95 $386.48

Mountain Full Susp.

9.67 8.87 9.57$1,319.97

Freestyle 5.56 4.42 3.78 $226.36

Mountain No Susp.

3.12 1.64 0.41 $220.21

Youth 20" 2.60 2.41 2.24 $171.04

Youth 24" 2.51 2.75 2.23 $242.78

BMX 1.98 1.38 0.97 $204.67


Youth 19" and below

1.76 1.72 1.36 $126.72

Cruiser 1.57 1.90 2.38 $270.22

Source: National Bicycle Dealers Association Retail Data Capture Program. Tracks sales of top 19 bicycle brands through panel of retailers. Year 2005 dollar projections are not available.

Bicycle Production of Selected Countries, in Millions

1986-2000


5.3

8.4 8.8 9 9.9 10.5 11.5 11.3 11 10.5 11 11

0

2

4

6

8

10

12

PRODUCTION

1986 1991 1993 1995 1997 1999

YEARS

BICYCLE PRODUCTION IN INDIA (in Mln) 1986-2000

Sources: Bicycle Retailer & Industry News, Cycle Press, European Bicycle Manufacturers Association, Japan Bicycle Promotion Institute, and Bike Europe


Country 1986 19901991

1992

1993

1994

1995

1996

1997

1998

1999

2000

India 5.3 8.4 8.8 9.0 9.9 10.511.511.311.010.511.011.0

China 41.0 31.9 36.840.341.042.041.038.030.023.142.752.2

France N/A 1.5 1.2 1.0 1.0 1.3 1.3 1.3 1.3 1.6 1.8 1.9

Germany 2.9 3.9 4.9 4.6 3.5 3.2 2.9 2.8 3.2 3.2 3.2 3.2

Indonesia 2.0 2.0 2.0 2.2 2.5 2.8 3.0 2.3 3.0 2.8 2.6 N/A

Italy 1.6 3.5 3.6 4.1 5.2 5.8 5.3 4.0 4.0 3.0 3.3 3.2

Japan 7.8 8.0 7.5 7.3 6.9 6.7 6.6 6.1 6.0 5.9 5.6 4.7

Korea 2.6 1.5 1.5 1.3 1.1 1.2 N/A 0.9 0.8 0.6 0.6 N/A

Malaysia N/A 0.3 0.4 0.6 0.7 0.8 0.8 0.5 0.8 0.7 0.8 N/A

Taiwan9.9 6.8 7.7 7.5 7.9 9.2 9.7 7.4 11.910.1 8.3 7.5

Thailand 1.0 0.7 0.8 1.0 1.0 1.1 1.8 1.5 1.8 1.6 1.5 N/A

United Kingdom

1.2 1.3 1.2 1.2 1.1 1.2 1.2 1.2 1.3 1.2 1.3 1.2

United States

5.8 5.6 7.6 8.9 7.7 7.3 8.8 8.0 6.0 2.5 1.7 1.1

Sources: Bicycle Retailer & Industry News, Cycle Press, European Bicycle Manufacturers Association, Japan Bicycle Promotion Institute, and Bike Europe

China manufactured a record 52 million bicycles in 2000—over half the world total. Nearly two thirds of

these were exported, with 17 million going to the United States. The United States itself produced just over

1 million bikes, down sharply from the 1995 output of nearly 9 million. With over 43 million cyclists, the

United States is the world's largest bicycle export market, with imports meeting 97 percent of demand.

The European Union, led by Germany, produced some 12 million bicycles in 2000. Italy closely trails

German production of 3.2 million bicycles, although cycle sales in Germany reached 5.3 million in 2000, compared with 1.6 million units in Italy.

India produced more than 11 million bicycles. Most of these are ridden domestically or shipped to Africa.

Africa is a potentially large bicycle market, but recently sales have declined in many countries despite the

continued need for low-cost, non-motorized transportation.


In Copenhagen, one third of the population commutes to work by bicycle. By 2005, Copenhagen's

innovative City Bike program will provide 3,000 bicycles for free use within the city. The city's total cycle

fleet is expected to grow, as city planners intend to increase already high car parking fees by 3 percent

annually for 15 years, impose high fuel taxes and vehicle registration costs, and concentrate future

development around rail lines.

Stockholm, one of the world's wealthiest cities, has seen car use decline in recent decades. There, urban

development is concentrated around city centers, allowing for greater public transportation efficiency.

Rail and buses are linked with pedestrian and bicycle-oriented routes. In all of Sweden's urban areas, 1

out of every 10 trips is taken by bicycle, about the same number by public transit, and almost 40 percent

on foot. Just 36 percent of trips are taken by car, a low for Europe. In the Netherlands, bicycles are used for 27 percent of all trips.

Yet with the world automobile fleet climbing to over 530 million, bicycles are losing out to a growing

collection of motorized vehicles in some parts of the world. In Beijing 10 years ago, 60 percent of all trips


were made on bicycle. Now that incomes have risen, residents have begun to favor the car, which is

viewed as a symbol of progress, and bike trips have fallen to 40 percent. In Shanghai, where many major

streets have recently been closed to bicycles during rush hour, the share of trips made by bike has

dropped to 20 percent. The Shanghai government reportedly has plans to ban bicycles altogether from

the city center by 2010.

In the United States and Canada, where development is much less concentrated, 84 and 74 percent of

trips are made by car respectively. In both countries, only about 10 percent of trips are pedestrian, and

just 1 percent is by bicycle. Many residents use bicycles for recreation, not for transit.

Cities at risk of being overrun by polluting, land-hungry automobiles could benefit by ensuring that

bicycles receive consideration in transportation planning and urban development schemes. Tax incentives


can encourage development in areas close to mass transit, and trains and buses can be equipped to

carry bicycles. Making streets and pathways safer and accessible to cyclists will encourage more people

to pedal to work and to use bikes for recreation.

Annual world bicycle production has grown to more than double automobile production since the mid-

twentieth century, when the two nearly coincided. The bicycle is an affordable, space-efficient, low-

maintenance method of personal transportation, and its usefulness promises future growth in the

industry.

The Worldwide Bicycle Market, in Millions,1997-1998

Production Imports Exports

Country 1997 1998 1997 1998 1997 1998India 11.00 10.50 N/A N/A 2.50 2.00China 30.00 23.10 N/A N/A 14.4 17.6

Taiwan 9.40 10.50 N/A N/A 8.95 9.55


Worldwide Bicycle Production (in Mln) 1986-2000

84

98105

95 9299 102 102 105 106

9892

76

93101

0

20

40

60

80

100

120

1986 1988 1990 1992 1994 1996 1998 2000

Years

PRODUCTION

India 11.00 10.50 N/A N/A 2.50 2.00Europeon Union 11.30 10.69 5.07 4.90 1.31 0.93

U.S.A 6.20 2.50 9.80 13.90 0.28 0.21Japan 5.98 5.72 1.6 1.84 0.21 0.32

Indonesia 3.00 2.80 N/A N/A 0.13 0.10Germany 2.82 3.0 1.77 1.92 0.3 0.42Thailand 1.80 1.60 N/A N/A 0.18 0.80France 1.29 0.92 1.15 1.14 N/A 0.23

Malaysia 0.80 0.70 N/A N/A 0.05 0.04Korea 0.76 0.65 N/A N/A 0.11 0.12

Sources: Japan Bicycle Promotion Institute, The Bicycle Council, U.S. Department of Commerce, European Bicycle Manufacturers Association, Cycle Press, Bike Europe, Bicycle Retailer & Industry News.


Sources: Compiled by Worldwatch Institute, Vital Signs 2002 (New York: W.W. Norton &

Company, 2002, Bicycle Cults.

Top 12 Sources of Bicycle Imports into the Europeon Unionin 1998, 1997 and 1996 (In Thousand of Units)


Sources: European Bicycle Manufacturers Association.


Country 1998 1997 1996India 328 379 383

Taiwan 2725 2699 2444Poland 403 415 335

Czech Rep 361 358 288Philippines 178 127 N/AVietnam 134 46 N/AU.S.A. 124 149 118

Lithuania 116 122 88Turkey 96 156 N/A

Thailand 64 160 123Indonesia 58 74 65Sri Lanka 49 31 N/A

Others 262 275 N/ATotal 4898 4991 4471

Bicycles Ownership in Selected Countries1996-1997

Country Bikes Total Bikes Per Person

India* 450,000,00 0.06

China** 450,000,000 2.6

U.S.A*** 100,000,000 2.6

Japan 72,740,000 1.7

Germany 63,000,000 1.7

Brazil 40,000,000 4.0

Italy 26,500,000 2.2

Indonesia 20,000,000 9.6

Netherlands 16,500,000 1.0

South Korea 6,500,000 2.6

Switzerland 3,800,000 1.8

*1992 Figures. **1995 Figures, ***1985-1988 Figures.

Sources::Cycle Press and Maria Lowe, The Bicycle: Vehilce for a Small Planet, Worldwatch Institute, 1989, p. 11-12;Motor Vehicle Manufacturers Association, Facts and Figures, Detroit, MI: various editions;.

How many bicycles are there in the world?


It is estimated that more than a billion bicycles are present in the world, with nearly half of them in China. Below is a table with the major countries:

Country Quantity Year China 450,000,000 1992USA 100,000,000 1995Japan 72,540,000 1996Germany 62,000,000 1996India 30,800,000 1990Indonesia 22,300,000 1982Italy 23,000,000 1995UK 20,000,000 1995France 20,000,000 1995Brazil 40,000,000 1996Netherlands 16,500,000 2000Canada 10,150,000 1992Spain 6,950,000 1995Sweden 6,000,000 1995South Korea 6,500,000 1985Mexico 6,000,000 1986Belgium 5,200,000 1995Rumania 5,000,000 1995Denmark 4,500,000 1995Switzerland 3,800,000 1996Hungary 3,500,000 1995Australia 3,300,000 1995Finland 3,250,000 1995Norway 3,000,000 1995


POSITIVE TREND IN EXPORTS:-

India's Exports of Bicycle & Bicycle Parts

SI.No Product2000-

2001

2001-

2002

2002-

2003

1 Bicycle free-wheels 3.544 3.534

2 Bicycle hubs 3.5427 5.7538

3 Bicycle rims 5.7753 4.1902

4 Bicycle spokes 3.9608 5.1248

5Bicycles and other cycles (including delivery tricycles)

not motorised26.854 34.0979 28.4801

6 Bicycles and parts 39.3436 133.0237 131.7516

7 Bicycles, not motororised 26.4861 33.8126 28.1771

8Brakes, incl. coaster braking hubs & hub brakes & parts

thereof4.6245 3.412 3.2111

9 Frames, forks & parts thereof 7.8316 8.7719 7.4479

10Hubs, other than coaster braking hubs and hub brakes,

and free-wheel sprocket-wheels 46.7238 50.1123

11 Invalid carriages not mechanically propelled 0.0062

12

Invalid carriages, whether or not motorised or otherwise

mechanically propelled

0.0335 0.05540.0117

13 Other invalid carriages 0.0273 0.0554 0.0117

14 Others 30.2266 33.1735

15 Others 39.6371 40.8244

16Others (cycles, rickshaws, delivery cyles, cycles,

tricycles, toy bicycles, etc), not motorized0.3679 0.2853 0.303

17 Wheel, rims and spokes 39.9627 42.4885


Currency: US $ Million Source: DGCIS

MAJOR PLAYERS IN THE INDIAN BICYCLE INDUSTRY:-

TUBE INVESTMENTS OF INDIA LIMITED:-

TI Cycles of India, one of the leading bicycle manufacturers in India, started in 1949, has been at the

forefront of innovations and is a pioneer in the market of cycles. TI cycles are the makers of country’s

most famous brands like Hercules, BSA and Philips cycles. The company’s vision is to be a worldwide

leader in cycling and cycling solutions by “instilling the pride of ownership in the customers”.

Brands:

- the flag ship brand of TI cycles portfolio, this brand of ours is still as young as ever.

Hercules stands for a unique pride of possession - anchored in the time-tested values of heroism and

integrity, to which the brand’s customers subscribe in their own lives.


- Another Flagship Brand of TI cycles, BSA stands for Birmingham Small Arms. It signifies the joy of cycling; fun and comfort go hand in hand with BSA. BSA today is an intrinsic part of the Indian family with cycles for everyone - kids, teens and adults.

Certificates: Certified with ISO 9002 and ISO 14001.

Exports: TI Cycles is an exporter to many regions across the global - Europe, South East Asia and Africa; being some of them.

AVON BICYCLES:

Avon Cycles came into being in 1952 when the first batch of 250 bicycles rolled out of its plant. AVON is

the only group anywhere in the world with full backward integration. They have facilities for making

almost all the parts, including Steel Balls needed for their Bicycles. This places them a cut above the rest

when we talk of quality born of work culture. They did not venture into Tyre and Tubes, these being in a

different discipline, altogether. To meet their expanding requirement of raw materials, they


added facilities for making Steel Strips, Steel Tubes and Hot Rolled Steel, achieving full backward

integration, unmatched and unequalled anywhere else.

HERO CYCLES:

Hero Group ranks amongst the Top 10 Indian Business Houses comprising 20 companies, with an

estimated turnover of US$ 3.2 billion during the fiscal year 2005-2006. Hero Cycles Limited is a Guinness

Book Record holder since 1986 as the world's largest manufacturer of bicycles, with annual sales volume

of 5 million bicycles in FY 2006. World Bank has acclaimed Hero Cycles as a role model in vendor

development based on a world-wide study. From a modest beginning of mere 639 bicycles in the year

1956, Hero Cycles products over 18500 cycles a day today, the highest in global reckoning. With the 48%

share of the Indian market and with more than Rs. 10000 Crore turnover annually., it is one of the largest


bicycle manufacturer.

ATLAS CYCLES

Established more than 5 decades ago under the pioneering efforts of Late Rai Bahadur Shri Janki Das

Kapur, the company begins its activities by manufacturing bicycles saddles as a small business

enterprise. In the very first year, 12000 cycles were rolled out. Since then, Atlas has grown and achieved

the distinction of becoming one of the largest manufactures of quality and strong brand presence, it has

emerged as a natural choice of customer. Today as the India’s top cycle brand Atlas –continues to

maintain an enviable status in India and abroad. Atlas is proud to be one of the top bicycle producing

companies in the world, with a capacity to produce 4 million bicycles per year. Atlas has earned not only

brand loyalty but also millions of satisfied customers in India and abroad. This is corroborated by the fact

that Atlas Bicycles are being used in over 85 countries.


OUTLOOK FOR THE FUTURE:-

The outlook for the future in bicycles is positive, though stability is the story of the recent past. The

bicycle industry is a seasonal business that can be impacted by unusual weather, as well as an industry

that relies on discretionary spending impacted by economic conditions. Industry sales of bicycles seem to

be stable at over 15 million bicycle units annually, plus parts, accessories and service, which historically

is a very healthy number for the industry. National trends related to the green movement, environmental

sustainability, the need to address health problems related to inactivity, and higher gas prices also bode

well for the future of human-powered transportation.

The federal government has also budgeted significant transportation money for construction of bicycle-


specific facilities such as bike paths and road improvements friendly to bicycles in the coming years,

which is another sign of the emergence of bicycling as an important form of transportation.

COMPANY PROFILE

Atlas Cycles (Sahibabad (U.P.), India’s leading bicycle maker has earned the coveted ISO 9001: 2000

certification from BSI (British Standards Institution) Management Systems. Atlas Cycles has industry-

recognized level of quality and service that gives customers the assurance that every single cycle

manufactured by Atlas has passed internationally accepted and strict quality process checks.

1. BACKGROUND

Established more than 5 decades ago under the pioneering efforts of Late Rai

Bahadur Shri Janki Das Kapur, the company begins its activities by manufacturing bicycles saddles as a

small business enterprise. In the very first year, 12000 cycles were rolled out. Since then, Atlas has


grown and achieved the distinction of becoming one of the largest manufactures of quality and strong

brand presence, it has emerged as a natural choice of customer. Today as the India’s top cycle brand

Atlas –continues to maintain an enviable status in India and abroad. Atlas is proud to be one of the top

bicycle producing companies in the world, with a capacity to produce 4 million bicycles per year. Atlas has

earned not only brand loyalty but also millions of satisfied customers in India and abroad. This is

corroborated by the fact that Atlas Bicycles are being used in over 85 countries.

2. Five decades of Cycling Revolution

Atlas name is synonymous with the cycling revolution India. Since 5 decades the company has

enjoyed a position of eminence and leadership in the bicycle industry. This was made possible because

Atlas constantly strived to move ahead with never ending zeal, technological upgradations, backward and

forward integration and user friendly innovations.


Atlas logo has been derived from Greek God depicting the legendary hero holding the world on his

shoulders. Thus Atlas assimilates in itself aspirations of the millions in their progress and transition

through various phases in their lives.

3. THE PHILOSOPHY

Atlas Cycles strongly believes in the philosophy that customer satisfaction is paramount for ensuring

their long term loyalty. Keeping its spirit of “Racing ahead of Times”, Atlas Cycles strives to move ahead

with never-ending zeal, technological upgradations, rapid expansion and user friendly innovations to be

the trend setter.

4. THE ISO 9001:2000 CERTIFIED COMPANY


Atlas Cycles (Sahibabad (U.P.), India’s leading bicycle maker has earned the coveted ISO

9001: 2001 certification from BSI (British Standards Institution) Management Systems. Atlas Cycles has

industry- recognized level of quality and service that gives customers the assurance that every single

cycle level manufactured by Atlas has passed internationally accepted and strict quality process checks.

“Atlas Cycles strives for total satisfaction of its customers by constantly upgrading the quality of its

product, both in strength and appearance and maintaining a culture of continuous improvement. Atlas

cycles moves ahead with never-ending zeal , technological up gradations, rapid expansion & user friendly

innovations to be the undisputed leader in the world of bicycles & thus keeps producing quality ‘cycles to

match your lifestyles’. The coveted ISO 9001: 2000 certification is a step forward in this direction.”

Atlas Cycles maintain and improve accuracy of inspection, testing and measuring equipments through

regular maintenance and calibration. The company has a strong dealer base who is satisfied with the


timely supply of quality products to them by Atlas. Atlas Cycles is a staunch believer in achieving total

customer satisfaction by projecting and enhancing the image of the company for excellence in quality.

This is achieved by constant training and orientation programs of the employees to attain high level of

quality consciousness.

The ISO certification is among the most comprehensive and difficult certificates to obtain, which requires

careful documentation of all quality management and evidence of a consistent system in conformance

with international standards.

5. THE MANUFACTURING UNIT

Atlas Cycles has three manufacturing units in Sahibabad (U.P.), Malanpur (M.P.), and Sonepat (Haryana).

With ever increasing demand for Atlas Cycles in India and abroad , manufacturing units of Sahibabad

(U.P.) and Malanpur (M.P.), with state-of-art facilities and latest production technology were set up.

Sahibabad unit is headed by Shri Jai Dev Kapur, President and is ably supported by Shri Girish Kapur,

Joint President, Shri Gautam Kapur, Joint President and Shri Rishav Kapur, Vice president. The Malanpur


Unit is headed by Shri Salil Kapur, President.

6. ATLAS IN-HOUSE RESEARCH AND DEVELOPMENT UNIT

The department of scientific and Industrial Research, Ministry of Science and Technology ,

Government of India has recognized the In-House R&D unit of Atlas Cycle. Atlas feels honoured by the fact

that it is the only bicycle manufacturing unit whose R&D unit has been recognized by the government of

India.

7. STEEL TUBE UNIT

Atlas has its own steel tube unit. It can manufacture 50,000 tones of mild steel and alloy steel tubes

per annum. Its computer controlled operations and modern equipment ensures the vitally needed

consistency in quality of steel tubes. Manned by qualified and highly experienced technical staff, the unit is

self- sufficient as it has its own slitting line and has a healthy and congenial atmosphere.

8. A STRING OF FIRSTS


Atlas Cycles holds to its credit many innovations and also the introduction of many new models in India. Amongst the several firsts:-

Atlas introduced the first Racing Bicycle in India in 1973.

Atlas Cycles won the Gold Mercury International Award in 1977. The first nd only Indian Cycle Manufacturer.

Atlas launched the 5 and 10 gears model for the first time in India in 1987.

Atlas had the rare distinction of getting sole franchise as official supplier of bicycles to 9th Asiad.

Atlas is the first Indian Cycle manufacturer to introduce twin suspension double shocker bike.

Atlas is the first Indian Cycle manufacturer to produce bikes with power braks i.e. Macho Cycle.

9. GROWTH

The company’s accomplishments in terms of overall growth are noteworthy. In the year 1951 the

company rolled out 12000 bicycles. Since then its operations have grown manifold and today the company

touches the figure of 10000 bicycles as its daily production. About setup second plant at Sahibabad which


is designed to produce 1.2 million bicycle annually. The current management took over this unit on 31st

August 2003 and since then the production and sales have registered a growth of 40%. Keeping its spirit of “Racing ahead of Times”, this unit initiated technical up gradations and

launched cycle in fancy range surpassing the customer expectation and fulfilling the demand of today’s

life style.

The company is adding a new administrative block with modern facilities with a view of providing

an excellent working atmosphere. Already, an exclusive exports shed has been constructed and is fully

operational. The growth plan envisages setting up of state-of-art paint shop in the near future.

10. THE PRODUCT RANGE

Bicycles these days are much more than just a popular means of transportation. They cover a

much broader spectrum of activities from fitness and trekking to racing bicycles. Keeping these trends in

mind Atlas Cycles has a wide range of bicycles including standard roadster, mountain bike, SLR’s (sport


light roadster), children’s bike, women’s bikes, city bikes, fitness bikes and sporty exercisers. It has more

than 150 models in various categories. Some of the new models launched recently are Samrat , Swan,

Stud, Tank Brave, Cheetah, Web King, Crazy Toons, Turbo, Concorde Pro etc. The company has exclusive

models for export which are custom made as per buyer demand.

11. CUSTOMER PROFILE

The bicycles are sold through a wide and dedicated network of dealers in the territories within our

jurisdiction. The government of Andhra Pradesh, Tamil Nadu, Pondicherry, Jharkhand and Bihar are also

customer of Atlas Cycles Sahibabad.

12. THE GLOBAL PHENOMENON

With a perfect assimilation of styles, technology and a focus on customer needs, Atlas started exporting


bicycles in 1958. Atlas has fomed strong strategic alliances overseas.

By offering wide range of products for almost all segments and age groups, it has strived to be

extremely market friendly and thus emerging as an internationally preferred brand. A fact that is proven

by its wide acceptance despite stiff market competition that is emerging globally. Today Atlas bicycles are

exported to over 50 countries around the globe.

Atlas Cycles are vey popular in Sri Lanka, Bangladesh, Middle East, South East, Asia, Africa etc.

They are also entering the markets in a big way in UK, Russia and Thailand.

13. THE BRAND AMBASSADORS

Atlas Cycles has signed on noted film star Suniel Shetty and Wimbledon Jr. Champion Sania

Mirza as brand Ambassadors for its new range of bicycles. Sania Mirza who will be seen for the first time

in an advertisement will be endorsing the Atlas Women’s range of bicycles.


14. THE ROAD AHEAD

Keeping pace with the spirit of Racing ahead of Times, Atlas is Constantly trying to innovate

and offer products with a firm commitment to meet the emerging customer needs thereby enhancing its

brand image and acceptability in the global market place. Company is planning to expand its capacity by adding new plant and machinery. The plan also

entails setting up a modern paint plant with the view of offering customers a product that matches

international standards.

The R&D division is being an upgraded with latest computer added designing facility. Likewise , the latest

testing facilities and balancing equipments are being added.

The company is strengthening its already fully computerized office system by adding latest software.


4.1 SWOT ANALYSIS

Complete manufacturing Solutions- From the drawing board to the streets the

envisaged and implemented within the company.

Integration of higher level technologies – The technical assistance for the expertise in the

bicycle industry through outsourcing and collaboration in R&D field helps the company to produce

components at cheaper price.

Understanding and integrating customer needs:- The gap between the supply and demand has

been bridged owing to the use of new softwares such as ERP and adoption of customer oriented

procedures leading to overall increase in efficiencies.

Continuous Technology Up gradation:- Due to any new technology that is being created is


rendered obsolete after a short duration. To maintain the market strong- hold upgrading of

technology on a continuous basis is paramount. ATLAS CYCLES strives to maintain its technology

at par with the best in the world.

Cost Competitiveness:- Due to the continuous hunt for cheap labour by the international

players, India has been looked upon as the most favourable places for doing business.

Global Logistics:- The breaking down of transnational barriers has popped logistics on a global

scale, this in turn proves to be enormously beneficial to the industry, and infused a lifeline into it.

High Quality and Productivity:- the company ensures high quality and productivity through its

latest technology which it gets from its counterpart, and ensuring that all the employees and

suppliers thrive for better quality and hence increasing the customer satisfaction level.

The bicycle industry adheres to high quality controls.


WEAKNESS

Till recently many of the organized and unorganized players of the component industry did

not have access to the high levels of research and development capability.

The Bicycle industry experts are of the view that the industry is exposed to cyclic


downturns.

Most of the local players are dependent on the global majors for the latest technology and

R&D which in turn hampers their cost effectiveness since the major player is in a better

position to dictate terms.

Inability to manage high input cost in comparison to its competitors

Inability to focus on its Promotions

OPPORTUNITIES

Bicycle companies in India are now focusing on urban markets and are looking to expand their

base in the professional and adventure categories. The bicycle business is flourishing worldwide


with the poor and the moneyed classes alike are interested in using this mode to reach their

destinations. It resulted in the global companies experimenting with the change and spreading

their wings.

The cycle makers are optimistic that the fancy segment would grow to constitute nearly 70 per

cent of the market by 2010.

The future could also see Indian consumers upgrading to lighter sports cycles.

High oil prices and concerns over climate change may encourage people to take up cycling. The

global industry’s steady production over the past decade demonstrates the bicycle’s

resilience and its promise for the future as a climate-benign, healthy, and affordable

transportation alternative.


http://economictimes.indiatimes.com/Two-wheelers/Bicycle_industry_eyes_urban_market/articleshow/2506735.cms

THREATS

Emerging Economies are becoming volume drivers with their associated costs, quality and

productivity advantages.

Market getting unified into a single integrated market.

Development to global standards in a compressed lead time

Imports pose price based competition in the replacement market.

Solution for high volume and world class quality at low costs.

The presence of a large counterfeit components market poses a significant threat.

Further marginalization of smaller players likely.

Like in many other sectors, the Chinese threat seems to have been overstated in the cycle

industry.


5.1 DATA COLLECTION

A research can call for gathering primary data, secondary data or both. The data have mainly been

collected via primary source. However a good amount of secondary data was also used to have a general

understanding of the subject.

1)Primary Source

The primary data gathered for specific purpose and are collected by the researcher himself. It

includes direct communication and feedback from customer, sales and marketing executives of Atlas

Cycles and other related person . For the purpose of collection of information from customers , a

structured questionnaire was formulated and the customers were directly contacted.

2)Secondary Source

The secondary sources are data which were collected for another purpose and already exists

somewhere. The secondary source of information here includes library resources, articles in various


newspapers and magazines, product catalogs brochure and online resources like company websites,

online reports and articles.


Q1. According to you which is the most selling brand among these?


Q2. Which company comprises of large range of fancy and small kid bicycle?


Q3. Which company provides a great colour combination and design in order of preferences?


Q4. Which company provides a wide and new range of different models of bicycle for sale?


Q5. Range of matching and stylish accessories relevant to bicycle is provided by which company?


Q6. Sale policy of which company suits you the most and is profitable?


Q7. Which company helps you to advertise their model indoor and outdoor?


Q8. Satisfactory, beneficial and in favour schemes are provided by which company, mostly?


Q9. Best deal in products quality and warranty policies are provides by company?


Q11. In your opinion which company is the best in the grievances handling?


Q12. Which company favours their dealer by organizing most company official seminars and meetings?


Q13. Promptness or satisfactory responses are provided by which company?


CONCLUSION:

1. The marketing strategy been used and implemented by the company is no

more in favors of the dealer, as perhaps the ROADSTAR is the only model

which is the marketing money maker for the company and been on its way

of growth but the other models seems to be not in favour of the growth in

comparison of the other competitors.

2. The dealer satisfaction is the most initial and foremost the more necessary

one for the growth of the company but here also the company stand only for

some grade of satisfaction but not with the major points to hold which

provide the growth to business for the company.

3. The pricing strategy been implemented by the company on their products is


been not satisfactory with the various models of the other company and lack

with the major differences with the other competitors. As the growth is

concern, unless brand is on the tip of the consumer with all point of

satisfaction especially the price, the growth can’t be with the race of the

other competitor.

4. The range provided by the company can be huge and vast but rather is less in

the eye of the consumer as almost the dealer and the consumer been satisfied

by the singular brand only and no one is been satisfied at this point with the

company in the class of range of different bicycle.


RECOMMENDATION:

1. The marketing strategies should be much improved by the company as only

one model sales can’t give the growth of the company, so the more public

relation should be done better with the time and much more awareness of the

company should be done by making certain advertisement and holdings in

the city which is not been done yet by the other company on large, also the

various competition should be organized by the company in certain schools

so as to promote the company and its various models.

2. The dealers satisfaction should be considered the most, other than profit the

various rewards and gifts should be given by the company and the various

schemes on sales of specific model with the large scale of profit should be


given, also various seasonal offer and schemes should be made so as to

make a growth to the company sales and the most make a image of company

in mind of the dealer.

3. The pricing strategies should be revise again by the company as most of the

major models sales is been lacking due to the price substantial differences in

comparison of the other competitors, also one model is been revealed by the

respondents was the shocker bikes which is the lowest of the hero company

in price in comparison of the other companies shocker bikes.

4. The difference if stand by the price so also been stand by the range

availability and it should be notice by the company to retrieve new model

which becomes icon of the consumer also the differences is the matching

accessories been provided by dealer to consumer sometimes not suit with the


sale of that relevant model which make a negative image of lacking behind

of company with the competition of other models of other company.

5. The awareness of the company and its product to the consumer should be

done by providing various modes of schemes to the consumer from time to

time to up thrust the consumer mood and its thoughts of buying.

6. The various differences of the company stand with the quality priorities and

that’s where company should be in favour of consumer with a high quality

with low cost in comparison with the other competitor.


PHILIP KOTLER : MARKETING MANAGEMENT

SUJA.R.NAIR : CONSUMER BEHAVIOUR

RAMANUJ MAJUMDAR: MARKETING RESEARCH

C.R.KOTHARI: MARKETING RESEARCH

BICYCLE RETAILOR & INDUSTRY NEWS, PUBLISHED BY THE NBDA

http://www.financialexpress.com/news/Atlas-Cycle-forays-into-pharma-business/313225/---- Charanjit Ahuja

http://findarticles.com/p/articles/mi_m0EIN/ is_2006_July_6/ai_n26917638

http://www.valuenotes.com/ajain/ ajain_Atlas_02may05.pdf?ArtCd=35016

http://www.thehindubusinessline.com/2007/02/15/ stories/2007021504881300.htm

http://www.business-standard.com/stockpage/ stock_details.php?stk_id=505029

http://www.indiainfoline.com/company/ discorpnews.asp?storyId=6113039007&lmn=4&tbl=news

http://www.tribuneindia.com/2003/20031226/ncr2.htm


http://www.tribuneindia.com/2003/20031226/ncr2.htm

http://www.indiainfoline.com/company/discorpnews.asp?storyId=6113039007&lmn=4&tbl=news



http://www.business-standard.com/stockpage/stock_details.php?stk_id=505029

http://www.business-standard.com/stockpage/stock_details.php?stk_id=505029

http://www.thehindubusinessline.com/2007/02/15/stories/2007021504881300.htm

http://www.thehindubusinessline.com/2007/02/15/stories/2007021504881300.htm

http://www.valuenotes.com/ajain/ajain_Atlas_02may05.pdf?ArtCd=35016

http://www.valuenotes.com/ajain/ajain_Atlas_02may05.pdf?ArtCd=35016

http://findarticles.com/p/articles/mi_m0EIN/is_2006_July_6/ai_n26917638

http://findarticles.com/p/articles/mi_m0EIN/is_2006_July_6/ai_n26917638

Direct Marketing: Strategy Planning Execution By by Edward L Nash

Pharmaceutical Marketing: Strategy and Cases by Mickey Charles Smith

On Target: The Book on Marketing Plans by Doug Wilson

Conversation Marketing: Internet Marketing Strategies By Ian Lurie


http://books.google.co.in/books?id=iOTM6ztJX8wC&dq=BOOKS+ON+MARKETING+STRATEGIES&pg=PP1&ots=oLes99eXTq&source=citation&sig=jx5Ybx2j3DT7ISMPkKBtqSXTwKQ&hl=en&sa=X&oi=book_result&resnum=13&ct=result

http://books.google.co.in/books?id=ZjBUbWbVSNYC&dq=BOOKS+ON+MARKETING+STRATEGIES&pg=PP1&ots=-k-7zT8iI1&source=citation&sig=MYNTicNcroc1uo0Jd5LRK0GlXVE&hl=en&sa=X&oi=book_result&resnum=12&ct=result

http://books.google.co.in/books?id=c8WAVq352o8C&dq=BOOKS+ON+MARKETING+STRATEGIES&pg=PP1&ots=i3JORkxJEf&source=citation&sig=7iKrwrbgEGzQstPdP07QzQLjGWk&hl=en&sa=X&oi=book_result&resnum=11&ct=result

http://www.wheelpublications.com/Annual2004/InnovationPassionBusiness.htm

http://www.bicycleindia.com/bicyclestats.php

http://www.indiandata.com/bicycle-and-parts.html

http://www.bicycleindia.com/bicyclehistory.php

http://economictimes.indiatimes.com/Two-wheelers/Bicycle_industry_eyes_urban_market/ articleshow/ 2506735.cms

http://www.domain-b.com/news_review/200702feb/20070222newsb.html

http://business.gov.in/Industry_services/light_industry.php

www. atlascycles onepat.com

www. atlascycles .co.in/about_ag.asp

www.corporateinformation.com/Company-Snapshot.aspx

www.alacrastore.com/company-snapshot/Atlas _ Cycles _ Haryana _ Limited


http://www.alacrastore.com/company-snapshot/Atlas_Cycles_Haryana_Limited

http://www.alacrastore.com/company-snapshot/Atlas_Cycles_Haryana_Limited

http://www.corporateinformation.com/Company-Snapshot.aspx

http://www.atlascycles.co.in/about_ag.asp

http://www.atlascyclesonepat.com/

http://business.gov.in/Industry_services/light_industry.php



http://economictimes.indiatimes.com/Two-wheelers/Bicycle_industry_eyes_urban_market/%20articleshow/%202506735.cms

http://economictimes.indiatimes.com/Two-wheelers/Bicycle_industry_eyes_urban_market/%20articleshow/%202506735.cms

http://www.bicycleindia.com/bicyclehistory.php

http://www.indiandata.com/bicycle-and-parts.html

http://www.bicycleindia.com/bicyclestats.php



money.rediff.com/money/jsp/company.jsp?

www.zibb.com/all/theme/c/ Atlas + Cycles +( Haryana )+ Ltd

www.alibaba.com/company/100159165.html

www.hotfrog.in/Companies/ Atlas - Cycles - Haryana

www.myatlascycle.com/wikimapia.org/1612511/ - 10k –

www.bombayharbor.com/Company43238/Atlas_Cycles_Haryana_Ltd.html - 19k -

www.datamonitor.com/companies/company/?pid=A9CF400E-87FC-4C20-9285-myiris.com/shares/company/snapShotShow.php?icode=ATLCYCIN&select=1 - 51k –

www.stockmarketmessages.com/stockname/a/ atlascycle .htm - 9 kinvesting.businessweek.com/research/stocks/snapshot/snapshot.asp?symbol=ATCY.BO

www.fundoodatajobs.com/search_results.php?company_id=36904 - 34k –yellowpages.sulekha.com/.../bicycle-dealers-services/indraprastha-h-o/atlas-cycle-haryana-limited.htm - 39k

www.atlascycles.co.in/about_management.asp -

www.atlascycles.co.in/atlasnews.asp?newsid=1 - 11kautomobiles.indiabizclub.com/profile/2246392~atlas+cycles+(haryana)+limited~sahibabad_india - 15k

www.findouter.com/India/City/Uttar_Pradesh/Sahibabad/Bicycles - 6k -


http://www.stockmarketmessages.com/stockname/a/atlascycle.htm%20-%209

http://www.datamonitor.com/companies/company/?pid=A9CF400E-87FC-4C20-9285-

http://www.datamonitor.com/companies/company/?pid=A9CF400E-87FC-4C20-9285-

http://www.hotfrog.in/Companies/Atlas-Cycles-Haryana

http://www.alibaba.com/company/100159165.html

http://www.zibb.com/all/theme/c/Atlas+Cycles+(Haryana)+Ltd

www.bis.org.in/other/tedseminar.htm - 65k -dir.indiamart.com/indianimporters/ag_water.html - 32k

www.wheelpublications.com/Annual2004/AtlasCyclesPeddingToGlory.htm - 8k -crescenttechno.com/clients.htm - 18k –

www.financialexpress.com/news/Atlas-Cycles-Eyes-Auto-Ancillary-Foray-In-Diversification-Thrust/106995/0 - 54kbikeandrickshaws.com/manufacturers-exporters-Bicycle_Spares_Parts_and_Accessories.html - 98k

www. atlas steeltubes.com/about_clients.asp - 55 kafaqs.com/perl/news/company_briefs/index.html?id=2454 - 10k

www.dazzleyellowpages.com/Valuable-Resource/People/Baba/?2 - 85k –

www.findouter.com/Asia/India/Business_and_Economy/Industries/Bicycles - 12k -

www.hkwireproducts.com/Sisterconcerns.htm - 21k

www.infodriveindia.com/india-Imports.aspx - 78kcontent.icicidirect.com/research/notestoaccounts.asp?icicicode=ATLCYC - 42k –content.icicidirect.com/research/DirectorsReport.asp?icicicode=ATLCYC - 47k –

www.trademart.in/manufacturers-exporters-Bicycle_And_Rickshaws.html - 107k -indiaearnings.moneycontrol.com/sub_india/reports.php?sc_did=ACI08&type=notestoacc - 59k


http://www.atlassteeltubes.com/about_clients.asp%20-%2055

www.rediff.com/money/2003/sep/13spec4.htm - 21k

www.hinduonnet.com/2001/07/12/stories/0612000f.htm - 7kimporter.indiatradepage.com/all/Indi/499.itp - 42k

www.easy2source.com/supplier/5/2360/ - 8k

www.kompass.com/mt/IN738095 - 19k

www.indianyellowpages.com/india/manufacturer_exporters/b/bicycles_parts.htm - 49k -

www.tribuneindia.com/2006/20060928/delhi.htm - 65k -

www.technoworld.in/techno/fundamental/reports.asp?Location=DIRRPT&ReportType=DIR&CompanyCode=1259... - 75k

www.business-standard.com/common/news_article.php?leftnm=sme&bKeyFlag=BO&autono=323713 - 94k

www.moneycontrol.com/stocks/company_info/notestoaccount.php?sc_did=ACI08 - 91k –

www.bike-eu.com/.../market-reports/2792/%3Cb%3Eindia-2007-%3C-b%3E-levs-to-grow-to-70,000-units.html - 26k

www.dsir.gov.in/tpdup/irdpp/valid06.rtf

www.niir.org/.../ - 78k


http://www.dsir.gov.in/tpdup/irdpp/valid06.rtf

QUESTIONNAIRE

Q1. According to you which is the most selling brand among these?

ATLAS

MILTON

HERCULES

HERO


AVON

OTHER

Q2. Which company comprises of large range of fancy and small kid bicycle?

ATLAS

MILTON

HERCULES

HERO

AVON

OTHER

Q3. Which is the largest selling model of bicycle in your shop?

A) ROADSTAR - ……………….


Cause:

No such availability of model in other companyNo such price of other company bicycle availableDesign and colour appearancesCustomer demand Dealer preferences

B) KIDS - ……………..

Cause:


C) SHOCKER/GEAR - …………….

Cause:



D) MTB/ATB - …………….

Cause:


Q4. Which company provides a great colour combination and design in order of preferences?

ATLAS


MILTON

HERO

HERCULES

AVON

OTHER

Q5. Which company provides a wide and new range of different models of bicycle for sale?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q6. Range of matching and stylish accessories relevant to bicycle is provided by which company?

ATLAS


MILTON

HERO

HERCULES

AVON

OTHER

Q7. Sale policy of which company suits you the most and is profitable?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q8. Which company helps you to advertise their model indoor and outdoor?

ATLAS


MILTON

HERO

HERCULES

AVON

OTHER

Q9. Satisfactory, beneficial and in favour schemes are provided by which company, mostly?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q10. Do you suggest the brand and company to customer?

YES


NO Do they apply the same?

Sometimes

Always

Never

Q11. Best deal in products quality and warranty policies are provides by company?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q12. In your opinion which company is the best in the grievances handling?

ATLAS


MILTON

HERO

HERCULES

AVON

OTHER

Q13. Which company favours their dealer by organizing most company official seminars and meetings?

ATLAS

MILTON

HERO

HERCULES

AVON

OTHER

Q14. Promptness or satisfactory responses are provided by which company?


ATLAS

MILTON

HERO

HERCULES

AVON

OTHER


CASE STUDY

TITLE: MARKET EXPANSION STRATEGIES OF ATLAS CYCLES

ABSTRACT:- The case ‘Market expansion strategies of Atlas cycles ‘ examines the the

market expansion strategies adopted by Atlas Cycles (Haryana) Limited,

India's biggest bicycle maker after Hero Cycles, in response to intense competition and a decline in sales of its Model - the Atlas Goldline. Then came the Funfleet range of sports bikes which took the market by storm.

Atlas Goldline enjoyed a near-monopoly status, until the Government of India liberalized the economy in 1991. This led to the entry of new players like TI, Avon, and Neelam to give Atlas tough challenges. Atlas began to introduce new models, and upgrade its existing models in response to market demand.


The growing preference for two-wheelers has affected the purchase of

bicycles in India. Since the late 1990s, the urban market has stagnated

while the purchases in the rural market have been decreasing. It was in

this scenario that Atlas Cycles launched a range of bicycles in early

2005, targeted at urban adults in their early thirties. The caselet examines

the various steps taken by the company in designing, promoting,

distributing, and selling its new bicycle. It also discusses Hero Cycle's

strategies to get a share of the rural and urban markets.

For instance, the company introduced the ‘fancy

bicycles’ to shed its image of being a manufacturer of roadsters. The case study looks into Atlas Cycles (Haryana) Ltd. came back from the crunch

to retain its place as the top bicycle maker in India. It has also earned the

coveted ISO 9001: 2000 certification from BSI (British Standards

Institution) Management Systems.

Keywords: Bicycles, Urban Adults, Hercules, BSA Cycle Run, Hero Group, Market

leadership ,market expansion, marketing communication, sales promotion, Customer Satisfaction.


"Results always exist outside the orgnisation - in the market place. Only costs and efforts exist inside the organisation". -Peter Drucker

Key Issues:

Product innovations in the bicycle industry

Value added services to attract customers

Strategies for rural bicycle market

Gain an overview of the Indian bicycle Industry, especially the fancy segment

Examine the reasons that made bicycle marketers look for latent markets like the

adult segment. Also briefly mention the stumbling blocks for Atlas Cycles in

marketing to the adult segment.

Comment on the measures being taken by Atlas Cycles and Hero to woo the thirty-

plus urban audience and discuss the other strategies that Atlas cycles can adopt to

increase the market share of Noida .

The Marketing Mix


In order to overcome the problems that Atlas faced in the early 1980s and help the company

regain its market share, a restructuring plan was implemented. They implement a strategy for

bringing both workers and dealers together and involving them in taking key decisions relating to

the company. A new marketing philosophy was developed based on the desires of the customers

and Atlas made efforts to position bicycles as a lifestyle product.

Product

At the time when Atlas was formed, it offered only roadsters bicycle to its customers and

provided three basic styles. However, the company realized that in order to survive, it had to

offer its customers more choice.

Pricing

Atlas realized that it would not be possible for it to compete with the US manufacturers on the

pricing front. This was because manufacturers like HERO not only manufactured a low-priced

high-quality product, but also spent heavily on advertising their products

Distribution

Atlas started selling its Bicycles through its dealers in 1952. All the dealers were independent


individuals with a business orientation.

Promotion

Over the decades, Atlas had adopted several strategies to promote its bicycle brand. The products

of bicycle were sold to retail customers mainly through dealer promotions, customer events, and

advertising through national television, print, radio, direct mailings, and through advertising on

the Internet.


“COMPREHENSIVE RESEARCH & ANALYSIS OF MARKET STRATEGIES OF ATLAS CYCLES VERSUS COMPETITORS”

INDUSTRY GUIDE : Mr. Rahul MathurFACULTY GUIDE : Mr. Sandeep SharmaSTUDENT’S NAME: Sanjay Chopra

OBJECTIVE:- To determine the marketing strategies and potential of Atlas company for the upcoming years and to determine To study the perception of the consumers about Atlas Cycles Brands vis-à-vis other brands.

FINDINGS:- Here I found that there is a boom in the Hero segment as the preference for the fancy cycle is more and Atlas’s market share is less in the fancy segment. Thereby the company have to target all the upcoming fancy brand.

RECOMMENDATION:- In view of the expectations and requirements of the bicycle industry it is recommended that early launching and advertising of the new models will be


beneficial for the company to increase its market share and profits.

ABOUT INDUSTRY GUIDE:- Mr. Atul Sharma is a very positive person who can motivate anyone with his charming personality . Under his precious guidance I learnt a lot regarding the industry and how corporate world functions.


44061417 atlas project

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