Essay About Ti Cycle And Own Shops

Ti Cycles
Ti Cycles
External environments:
Customers: The youth segment was believed to grow by 20,000 per month which constitute
35% of bicycle market. The taste and preference of youth changes regularly so TI Cycle has to
give more focus on the youth.
Government: The import duties were increased by the European countries and the devaluation
of Chinese currency has adversely affected the exports sale of TI CYCLE.
Competition: New competitors were entered in the market with introduction of low price
bicycles in the market. The entrance of new competitor has reduced the market share of TI
Cycles and there is also a competition of TI Cycles with the motorized two-wheeler mopeds. So,
Competitors had a great influence on the sales of TI Cycles.
Options Mr. Ramkumar can adopt
1) To increase the sale in northern India: With the entry of Hero cycles, Avon, and Atlas
cycles, the cycle market scenario in India changed dramatically, TI cycles being the
prime sufferer. The low-cost and load bearing capacity being manufactured by the
competitors caught the attention of the people. These companies were quick to make their
image in youth and children segment and were successful in bringing out cycles targeting
this segments .TI somehow adopted a second league and in this process lost the crucial
timing and market share. The company therefore should upgrade its R&D and ensure that
the marketing cell also adopts proactive approach. And also the other competitors have
their own shops which give benefit to them and help them to improve their sales. We can
also compare from the data and see that the market share of TI in southern side is 43%
which is nearby half of the total market share where as in the western and eastern India,
TI also has good market share than northern India which is an average of 19% and in
northern India, TI has only 4% market share.
4% 24%
Market Shares
North
South
Atlas
Others
TI & its Competitors
A Geographic representation
2) Rural area can become an important segment: TI cycle has mainly focused into urban
area, TI cycle has the market share of 35% in urban area where as in rural area, and TI
cycle has only 15% of market share. To improve the performance in rural area, TI cycle
should improve the distribution network into rural area. Also TI cycle should provide
cycles in rural area at low price.
Rural Towns(<1 Lakh) 1-10 Lakh 10 Lakh+ Atlas