Kids Bicycle: An insight into its market position in Punjab.

PRESENTED BY:Harsimran Singh

MBA -2 C 95972238174

Presentation on

Summer Training Project

Pedal driven Human powered

Bicycle

1817 in Germany by Baron Von Drais. Name of 1st bicycle was Running machine.

History of bicycles

History Indian bicycle Industry

Bicycle was seen in India in the year 1890.

Five persons in Punjab imported Bicycles.

Allowed to use bicycles on ‘The Mall' Shimla only for one hour in a

day.

INDIAN CYCLE INDUSTRY

The Indian Bicycle Industry is having an annual turnover of over 1.2 million bicycles.

Indian Bicycle Industry is second to that of china in international market .

Major players are 1. Hero Cycles Ltd 2. Atlas Cycles Ltd 3. TI Cycles 4. Avon Cycles Ltd5. Others

Together control 85% of the market source::http://www.indianbicycleexporters.com/

Hero Group

Type of Company- Private Company. Founded-1956 Head Quarter-Ludhiana Key people-Brij Mohan Lal Munjal Industry -Bicycles Website –www.herocycles.com Turnover -Rs1490 Cr (approx)2008-09 Hero has already sold 10,00,17,493 Cycles. No. of employees:3155 (513 staff &2642

workers)

Source :wwwherocycles.com

Hero Cycles Limited

Vision- Strive for the synergy between technology, systems

and human resources to provide the products and services that meet the quality, performance, and price aspirations of the customers.

Mission- To strive for the fulfillment of the vision.

4 P’s

PRODUCT

1. CYCLES

2. RIMS

3. PEDALS

4. COLD ROLLED STRIPS

5. E – BIKES

PRICE

COST PLUS PRICING

PLACE

DEALERS

SUB - DEALERS

DIRECT COMPANY

PROMOTION

WALL PAINTINGS

TELEVISION

PRINT MEDIAS

Departments

Marketing

Manufacturing

Human Resource

Finance

Dispatching

Mass production Maintenance Kaizen rules

About Manufacturing Department

3200 Dealers.

27 Field Executives.

Discount schemes for dealers .

Marketing Of HERO Cycles.

Chairman

M.D

President

GM

ASM

Clerical staff

MARKETING STRUCTURE

STRENGTH –

1Management with vision.2Location advantage.3Strong brand image.4 Better quality .

WEAKNESS –

1Packaging material not of the required standards.This causes damages during transportations.

SWOT Analysis

OPPORTUNITIES –

1 Potential Growth in e-bike sector.2 Direct / indirect export opportunities to increase

the market.

THREATS –

1 Local / non branded manufacturers of cycle parts.2 Chinese cycles entering in INDIA in big way.3 Fluctuating steel prices.

FINANCIAL ANALYSIS

Year 2006-2007 2007-2008 2008-2009

Current Assets

3,514,169,012

4,078,120,805

4,500,174,202

Current Liabilities

2,174,339,220

2,117,280,044

1,897,907,454

Current Ratio

1.61 1.92 2.37

CURRENT RATIO (in rupees)

(in rupees)

Year 2006-2007 2007-2008 2008-2009

Quick Assets 2,078,507,978 2,971,184,464 3,722,592,925

Current Liabilities

2,174,339,220 2,117,280,044 1,897,907,454

Liquid Ratio 1.24 1.40 1.96

QUICK RATIO

( in rupees)

Year 2007 2008 2009

Absolute Liquid Assets

22,134,657 151,600,603 1,52,820,715

Current Liabilities

2,174,339,220

2,117,280,044

1,897,907,454

Cash Ratios 0.0101 0.0716 0.0805

ABSOLUTE LIQUID RATIO

(in rupees)

Year 2007 2008 2009

Gross Profit 1,575,635,349 1,412,590,733 2,036,019,569

Net Sales 13,308,705,116 12,850,038,969 14,901,978,247

Gross Profit Ratio

11.83 10.99 13.66

GROSS PROFIT RATIO

2004-2005 2005-2006 2006-2007 2007-2008 2008-090

20

40

60

80

100

120

140

160

Trend

Turnover

Net Profit

2004-05 2005-2006 2006-2007 2007-08 2008-090

20

40

60

80

100

120

140

160

180

200

Trend

EPS

2004-05 2005-06 2006-07 2007-08 2008-090

20

40

60

80

100

120

140

160

180

200

Kids Bicycle: An insight into its market position in Punjab.

Tittle

Objectives

To find out the sales leader in kids bicycle segment.

To know the factors which affects the sales of kids bicycle.

To know the future of kids bicycle in market.

RESEARCH DESIGN: Descriptive Design.

UNIVERSE –All the existing bicycle dealers of all brands in the world.

POPULATION- All the bicycle dealers existing in India.

SAMPLING TECHNIQUE Non probability sampling technique(convenience

sampling).

Research Methodology

Geographical Area

DATA COLLECTION- Primary data: Structured Questionnaire &

Schedules. Secondary data: News papers ,

Magazines.

SAMPLE UNIT- Each and every bicycle dealers in Punjab .

SAMPLE SIZE- 50

Human error. Conversion of Questionnaires into

Schedules. Time constraints . Sample size.

Limitations

Options No of Respondents Percentage

ATLAS 0 0

AVON 7 14

HERO 38 76

TI 2 4

OTHERS 3 6

Total 50 100

Table no - 4.7 Most preferable brand in kids cycle segment in market ( N =50 )

Table no 4.13 Monthly sales kids cycle of all companies (approx)

Brands Volume Percentage (approx)

HERO 2706 56ATLAS 296 6AVON 781 15TI 550 11 Tara--------- 25 Top track----- 47 Neelam ----- - 47OTHERS Nova---------- 89 S.k bykes… … 222 Raja cycles -- 5 Sun cross---- 70 Everbest--- 20 Hi bird------- 10 Oster ------- 20 Sendencer--- 10

565 12

Total 4898 100

Options No of Respondents

Percentage

Parents 27 54

Kids 23 36

Total 50 100

Table-4.8 Decision maker while purchasing kids bicycle. ( N =50 )

Table no-4.10 Customers prefer while buying kids bicycle .(More than 1) ( n =140 )

Options No of Responses Percentage

Price 25 18

Comfort 13 9

Design 36 26

Colour 19 14

Safety features

15 10

Quality 32 23

Total 140 100

Options No of Respondents

Percentage

Yes 32 64No 18 36

Total 50 100

Table no-4.11 Alteration in choice after looking all the brands and . their features . ( N =50 )

Options No of Respondents

Percentage

Less than 1000 0 0

1000-1500 4 8

1500-2000 19 38

More than 2000 27 54

Total 50 100

Table no 4.9 Range of price preferable by buyers for . kids cycle. ( N =50 )

Options No of Respondents

Percentage

High prices 38 76

Fair prices 12 24

Total 50 100

Table no.4.12 Opinion of dealer’s regarding prices of kids bicycle. ( N =50 )

Companies No of Respondents

Percentage

HERO 6 12ATLAS 14 28AVON 12 24TI 8 16OTHERS 10 20Total 50 100

Table no 4.14 Companies with maximum complaints in kids bicycle. ( N = 50 )

Table no-4.15 Rating on the basis of how speedily complaints entertained by the companies .

Very speedily = 2 Speedily = 1 Neutral = 0 Slowly = -1 Very slowly = -2

Options No of Respondents

Percentage

Yes 49 98

No 1 2

Can”t say 0 0

Total 50 100

Table no 4.18 Affect of advertisement on customers from the point of view of dealers .( N = 50 )

Companies No of Respondents

Percentage

HERO 45 90

AVON 5 10

ATLAS 0 0

TI 0 0

OTHERS 0 0

Total 50 100

Table no.4.19 Companies engaged in advertisement of kids bicycle. ( N = 50 )

Chart no 4.20 Growth in sale of kids bicycle up to the date of survey . ( N =50 )

76 %

12 % 12 %

yes No

Can,t say

Chart no 4.21 Prospects of kids bicycle segment in coming years from the point of view of dealers. ( N =50 )

78 %

10%12 %

Yes No

Can’t say

HERO is leading in the case of kids cycle segment.

HERO cycle brand in kids cycle segment is most preferable.

Most of the customers are ready to pay more than Rs 2000 for kids bicycle.

Parents and kids are final decision maker. Comfort, Durability ,Design ,Quality ,

Safety features are considered by customers.

Findings & Results

Most of the customers alter their choice. HERO cycles is very speedily in handling

complaints . HERO is involved in advertisement very

much including hoardings ,electronics ,wall paintings .

Majority of the dealers said that sale of kids cycle will be definitely increase in coming years.

Contd..

Suggestion

Reduction of prices

Light Weight

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