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AMAZIN BIKES
Executive Summary
Premier Manufacturer of
bikes
Chandigarh, India
Developing 3 year improvement plan
to tap the U.S. Market
Market Summary
Did you know ?
In 2014, 114 nations including Europe,
Middle East, and the Americas were having
over half of the adult population obese
Why paddle?
• Eco-friendly
• Non-expensive
• Healthy
• No need of external fuel
• Avoidance of massive traffic congestion
U.S. Bicycle
Market
$6.2 bn U.S. bicycle
imports
$480m
No. of
cyclists in the
U.S.
59.67m
Consumer
purchases of
recreational
transport
products
$27.15bn
SWOT Analysis
STRENGTH
• Pricing
• Low labor costs in India
• 95% of bicycle sources supplied from
domestic sources
WEAKNESS
• Lack of brand awareness
• Substitute products for recreational
activities
• Indian share in global bicycle business :
1%
OPPORTUNITIES
• Enormous potential in global market
THREATS
• Competition from China
Lower cost of production
• Trump’s Import Taxes
Competitor’s Analysis
Giant Manufacturing Electra Bicycle Schwinn Bicycle
Company
Trek Bicycle Company
Road training,
mountain, comfort,
indoor, family, specialty
Specializes in Cruisers Road, commuter,
cruisers, electric,
mountain, BMX, and
kids
Mountain, road, city,
custom, bike products
Manufacturing units in
Japan – low quality
standards
Manufactured in –
Taiwan
Retro-trendy bikes than
functional commuter
bikes
Not popular among
avid bikers
$300-$8,000 $350-$800 $100-$500 $300-$15,000
BikeGroupsNegatives
Products
Hybrid Bikes
$200 to $500
Electric Bikes
$200 to $500
Cruiser Bicycles
$150 to $400
BMX Bikes
$150 to $400
Adult Tricycle
$300 to $500
Price
Market share for manufacturers
priced at $400 and up:
Pricing Strategy Adopted :
24%
7%
6%
Market Penetration
Place
Distribution Channels :
• Specialty bicycle Retailers
• Mass merchants
• Full-line sporting good store
• Outdoor specialty store
• Internet Sales
Department, Discount and
Chain toy stores sell price
oriented goods.
Distribution
0.52%
0.30%
0.08% 0.07%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Special bike retailers Mass merchants Online Company outlets
2014-2016
2014-2016
Marketing Communication
Social Media
Contests
Events
Hoardings
Market Segmentation
Target Markets
School Students Sophomore Military Personnel's
Positioning
Products
Priced
≥ $500
Color
Customization
Financials
• Factory Set up cost : INR 5,00,00,000
• R & D : INR 10,00,000
• Production cost : INR 50,00,000
• Warehousing cost : INR 2,50,000
• Exporting cost : INR 15,00,000
• Promotional activities : INR 5,00,000
• TOTAL COSTS : INR 5,82,50,000
• Estimated budget : INR 6 Cr.

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Marketing of new bike

  • 2. Executive Summary Premier Manufacturer of bikes Chandigarh, India Developing 3 year improvement plan to tap the U.S. Market
  • 3. Market Summary Did you know ? In 2014, 114 nations including Europe, Middle East, and the Americas were having over half of the adult population obese Why paddle? • Eco-friendly • Non-expensive • Healthy • No need of external fuel • Avoidance of massive traffic congestion U.S. Bicycle Market $6.2 bn U.S. bicycle imports $480m No. of cyclists in the U.S. 59.67m Consumer purchases of recreational transport products $27.15bn
  • 4. SWOT Analysis STRENGTH • Pricing • Low labor costs in India • 95% of bicycle sources supplied from domestic sources WEAKNESS • Lack of brand awareness • Substitute products for recreational activities • Indian share in global bicycle business : 1% OPPORTUNITIES • Enormous potential in global market THREATS • Competition from China Lower cost of production • Trump’s Import Taxes
  • 5. Competitor’s Analysis Giant Manufacturing Electra Bicycle Schwinn Bicycle Company Trek Bicycle Company Road training, mountain, comfort, indoor, family, specialty Specializes in Cruisers Road, commuter, cruisers, electric, mountain, BMX, and kids Mountain, road, city, custom, bike products Manufacturing units in Japan – low quality standards Manufactured in – Taiwan Retro-trendy bikes than functional commuter bikes Not popular among avid bikers $300-$8,000 $350-$800 $100-$500 $300-$15,000 BikeGroupsNegatives
  • 6. Products Hybrid Bikes $200 to $500 Electric Bikes $200 to $500 Cruiser Bicycles $150 to $400 BMX Bikes $150 to $400 Adult Tricycle $300 to $500
  • 7. Price Market share for manufacturers priced at $400 and up: Pricing Strategy Adopted : 24% 7% 6% Market Penetration
  • 8. Place Distribution Channels : • Specialty bicycle Retailers • Mass merchants • Full-line sporting good store • Outdoor specialty store • Internet Sales Department, Discount and Chain toy stores sell price oriented goods.
  • 9. Distribution 0.52% 0.30% 0.08% 0.07% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% Special bike retailers Mass merchants Online Company outlets 2014-2016 2014-2016
  • 12. Target Markets School Students Sophomore Military Personnel's
  • 14. Financials • Factory Set up cost : INR 5,00,00,000 • R & D : INR 10,00,000 • Production cost : INR 50,00,000 • Warehousing cost : INR 2,50,000 • Exporting cost : INR 15,00,000 • Promotional activities : INR 5,00,000 • TOTAL COSTS : INR 5,82,50,000 • Estimated budget : INR 6 Cr.