This document discusses the concept of "nudge theory" from behavioral science, which explains how subtle cues can influence individuals' decisions. It proposes using nudge theory to increase sales of bicycles over motorcycles for short-distance travel. A survey found that those under 18 use bicycles most. Strategies suggested include companies providing employee bicycles, societies offering bicycles on weekends, and businesses renting bicycles, to familiarize more people with bicycling and its health and environmental benefits. The key is appealing to people's desire to save money.

1. Explanation of nudge and its concept,
Nudge means “approach, nearby something, gently
encouraged to do something”. Nudge theory is one of
the concepts from behavioral science, political theory
and economics which explains that “any event or action
which indirectly create strong positive belief and
positioned something which influence the decision of
individual, group etc. for long or short term
effectiveness”.
This is some assumptions made by several people on
nudge theory i.e. “How to Help People Make Better
Choices to Lead a HEALTHIER, WEALTHIER & HAPPIER
LIFE”
it is somewhere provide right expression of influencing
people emotionally and psychologically which effects
the decision making. It is kind of diverting the mind of
people with the help of behavioral study of consumers.
Examples: - Bourn-vita a product of Cadbury, sold in
the market as a chocolate drink, which is very much
famous among children’s. Cadbury usually use “Nudge
concept” to influence and position their product by
generating fear in the parents mind by showing
different advertising which focused on lack of mental
and physical growth in their child.
Mutual Fund Companies is also
advertising their mutual fund schemes with the help of
nudge theory, where they used to influence people for
the future income which positioned the new and smart
way of investment in the people mind.
These are some industrial more
examples that are using this theory for the purpose of
increasing their revenue and influencing people for the
short period of time.
Let us explain it in a more viable and
practical manner by designing marketing strategy of a
specific industrial product as a corporate strategic
specialist.
Bicycle industry
Here we are going to focus on influencing the
decision making of people from buying motorcycle to
bicycle for local usage.
Bicycle industry or cycling industry is oldest form of
two-wheeler commutation. But these days’ people are
using more convenient two wheeler i.e. motor bike
which causes damage to environment as well as
physical or mental problems by being not following
traffic rules.
In India, there are many player who are
into this product of several sizes, designs etc. such as
Hero Cycles, Atlas Cycles, BSA/ Hercules, Avon cycles,
Firefox, Trek etc. they are doing great in kids cycling
products but unfortunately day by day they are losing
their sale because of will of buying motor product over
bicycle for some unrealistic reasons which I found
during sampling like:-
1. Status in the society.
2. Showing off money.
3. Lack of health related education etc.
So, here I am totally focused on converting or
positioning bicycle into the people decision making over
purchase of motor products.
Advantages of cycling industry:-
Economic benefits: - bicycle is an economic product
because it reduces the most of the expenses of
commuting from one place to another (basically for
short distance).
Health benefits: - Sorting most type of Health related
issues such as blood pressure, heart diseases, laziness
etc. it also reduces cost of gym, aerobics, yoga and
many more.
Social benefits: - instead of losing status in the society it
actually increase you social life. You get to know many
people and also increase your visibility in the society of
being health freak.
Environmental benefits: - most important benefit is you
are not going too stuck in any sort of traffic jam because
there are no such rules. Even it does not produce any
sort of polluted chemicals which are usually produced
by motor products.
Only disadvantage of cycling products is
we can’t use it for long distance commutation. That’s
why we are focusing on diverting people towards short

2. distance use of bicycle. Let us strategize its marketing
technique with the help of nudge theory.
Firstly, we have to know what people think about using
this product in day to day life.
For this I conducted survey form from which I took
sample for evaluating the customer preference, choices
and thinking…
Results: - I asked some question from every age
group so that we can get to know about consumer
behavior and preference. 10 people each from every
age group. .
Solution to the problem
So, what I got to know that below age 18 people do
cycling more often than any other group. So how we
can position our product in other age groups specially
above age 18 -49 for domestic use..
solution of this problem is awareness of various
benefits…
first strategy is
for people who are living in household(society)-
Provide cycles by the society management
for domestic use to society member, usually on Sundays
and public holidays. It will help people becoming use to
or familiar with cycling and its benefits. This will
definitely affect our major age group i.e. age 30- 49 as
well as it will aware people about social and
environmental responsibility.
For employees of several corporate groups…
Companies can gift cycles to their employees on various
festivals or may organize an event related to cycling for
the refreshment of their employees and even they can
start a scheme of earning more incentive from the
constant use of cycles for commuting domestic area,
this will help the company to make their employees fit
and health oriented.
For small business people,
They also can start a new business of renting cycles
which actually increase their income and product and
service line.
For government point of view,
Government also gets benefit from such campaign
which helps them in controlling pollution but for this
they have to provide some more subsidies so that
people get motivated.
Communication
These are some solution to the problem and as a
corporate strategist of any company in cycling industry
would pursue first in their own industry and spread
awareness, so that there is an increase in the income or
profit.
Company can communicate these by pursuing
corporates; societies etc. not by too heavy advertising
but with help of awareness and health schemes tie ups
with other companies(MNC’s) and then to societies
management and various colleges.
In India, people usually think of having benefited from
anything they are using, whether it relates to their
wealth or any social or environmental scenario, so we
just focus on saving their money because no one want
to spend their saving without something in return, even
they donate in mandir, masjid, foundation etc for the
sake of their happiness and saving tax..
Conclusion & suggestions
The only thing they have to remember is “save their
money, they will increase yours”. It is a conclusion of
above discussion and core concept of nudge theory.
Suggestion is that “Behavior of customer is directly
proportionate to the saving of their money and time”.
below 18
18-30 age
30- 49 age
50 above
0
2
4
6
8
10
below 18
18-30 age
30- 49 age
50 above