KAMLA LOHTIA SANATAN

DHARAM COLLEGE

FINAL REPORT
ON

COMPREHENSIVE RESEARCH & ANALYSIS OF MARKETING

STRATEGIES OF YUVRAJ CYCLES VERSUS COMPETITORS

Submitted in Partial Fulfillment of the Requirements for the

POST GRADUATE DEGREE IN MASTER OF COMMERCE

SUBMITTED BY: SUBMITTED TO:

HARISH SINGH
 ACKNOWLEDGEMENT
For every opportunity may God be thanked.

I express my sincere thanks to YUVRAJ bikes (punjab) .

for giving me an opportunity to work with them through this
summer project.

I express my sincere gratitude to my industry guide Mr. JATINDER SINGH

sales Manager, YUVRAJ bikes (punjab) ., 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.karant kant uppal of

my institute, for her continued guidance and invaluable
encouragement.

Signature
(Student)
 Index
1. CHAPTER 1: INTRODUCTION1-30

1.1. Overview of the Industry

1.1.1 Industry Profile
1.1.. Distribution Channel
1.1.3. Recent History Overview
1.1.4. Major Players Name in Bicycle

1.2. Company Profile

1.2.1 Background
1.2.2. Ten Years of Cycling Revolution
1.3. Swot Analysis

2. CHAPTER 2 : RESEARCH METHODOLOGY

2.1. Objective & Scope

2.1.1. Primary Objective
2.1.2. Secondary Objective
2.2. Problem Defination
2.3. Research Design
2.4. Sample Design
2.5. Scope of Study
2.6. Limitation of Project

3. CHAPTER 3 : CRITICAL REVIEW OF LITERATURE

4. CHAPTER 4 : DATA COLLECTION

5. CHAPTER 5 : FINDING & ANALYSIS

6. CHAPTER 6 : CONCLUSION

7. CHAPTER 7 : RECOMMENDATION

8. BIBLIOGRAPHY
9. ANNEXURE
10. CASE STUDY
CHAPTER - 1

INTODUCTION

1
1.1 OVERVIEW OF THE INDUSTRY
People don't care how much you know until they know
how much you care - about them and their problems."

Robert Cavett

1.1.1 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 quadrupled, while car
2
production has roughly doubled. (Source:http://www.earth-
policy.org ).

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

In the chart, "SOV" means Single
Bicycles and carriages which fall under the codes 8713 attract a
Most of the factories
manufacturing bicycles and parts are
located in Punjab and Tamil Nadu.
Major companies in this industry are
Hero , Tube Investment of India,
Atlas Cycles, Hamilton Industries, R
M I Cycles, National Bicycle Corp. of
Occupant
India. Vehicle.

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.
3
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 Industrys 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:

4
Year Bicycles Sold (Millions) 20" and Bicycles Sold (Millions), all wheel
Above sizes
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. Departmen

5
of Commerce import statistics, and estimates of domestic market
production by National Bicycle Dealers
Association and Gluskin Townley Group, LLC.
* indicates projected figures

1.1.2 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
servics such as bike fitting, expert assembly and repair. The 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

6
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.

7
1.1.3 RECENT HISTORY: OVERVIEW

The industrys 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.

Todays 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"

8
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.

9
Specialty Bicycle Sales By Year, Units, 2006-2009

Category 2006 2007 2008 2009

Unit % Unit % Unit % 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

10
Source: U.S. Commerce Department statistics, Gluskin Townley
Group estimates. Source: U.S. Commerce Department statistics, Gluskin
Townley Group estimates

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 2000over 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

11
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.

12
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.

13
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.

14
 The Worldwide Bicycle Market, in Millions,
1997-1998

Production Imports Exports

Country 1997 1998 1997 1998 1997 1998
India 11.00 10.50 N/A N/A 2.50 2.00
China 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
India 11.00 10.50 N/A N/A 2.50 2.00
Europeon 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 0.21
Japan 5.98 5.72 1.6 1.84 0.21 0.32
Indonesia 3.00 2.80 N/A N/A 0.13 0.10
Germany 2.82 3.0 1.77 1.92 0.3 0.42
Thailand 1.80 1.60 N/A N/A 0.18 0.80
France 1.29 0.92 1.15 1.14 N/A 0.23
Malaysia 0.80 0.70 N/A N/A 0.05 0.04
Korea 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.

15
Top 12 Sources of Bicycle Imports into the Europeon Union in 1998,
1997 and 1996 (In Thousand of Units)
Country 1998 1997 1996
India 328 379 383
Sources: Taiwan 2725 2699 2444
European Poland 403 415 335
Bicycle Czech Rep 361 358 288
Philippines 178 127 N/A
Vietnam 134 46 N/A
U.S.A. 124 149 118
Lithuania 116 122 88
Turkey 96 156 N/A
Thailand 64 160 123
Indonesia 58 74 65
Sri Lanka 49 31 N/A
Others 262 275 N/A
Total 4898 4991 4471

Manufacturers Association.

Bicycles Ownership in Selected Countries

1996-1997

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.

16
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 1992

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

17
Hungary 3,500,000 1995
Australia 3,300,000
1995
Finland 3,250,000 1995
Norway 3,000,000 1995

POSITIVE TREND IN EXPORTS:-

India's Exports of Bicycle & Bicycle Parts

2000- 2001- 2002-

SI.No Product
2001 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

5 Bicycles and other cycles (including delivery tricycles)

34.0979 28.4801
not 26.854 motorised
6 Bicycles and parts 39.3436 133.0237 131.7516
7 Bicycles, not motororised 26.4861 33.8126 28.1771

8 Brakes, incl. coaster braking hubs & hub brakes & parts 4.6245 3.412 3.2111
thereof
9 Frames, forks & parts thereof 7.8316 8.7719 7.4479

10 Hubs, other than coaster braking hubs and hub brakes, 46.7238 50.1123
and free-wheel sprocket-wheels
11 Invalid carriages not mechanically propelled 0.0062
12 0.0335 0.0554 0.0117
Invalid carriages, whether or not motorised or otherwise
mechanically propelled

18
12 Other invalid carriages 0.0273 0.0554 0.0117
13 Others
30.2266 33.1735
14 Others
39.6371 40.8244
15 Others (cycles, rickshaws, delivery cyles, cycles,
tricycles, toy bicycles, etc), not motorized 0.3679 0.2853 0.303
16 Wheel, rims and spokes
39.9627 42.4885
Currency: US $ Million Source: DGCIS

1.1.4 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 countrys
most famous brands like Hercules, BSA and Philips cycles. The
companys vision is to be a worldwide
leader in cycling and cycling solutions by instilling the pride of
ownership in the customers.

Brands:

19
 - 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 brands 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

20
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 Indias 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

21
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.

1.2 COMPANY PROFILE :

Yuvraj Bikes (Ludhiana (Pb)), Indias leading bicycle maker has earned the
coveted ISO 9001: 2000
a and company has been recognized level of quality and service that gives
customers the assurance that every single cycle manufactured by Yuvraj
has passed nationally accepted and strict quality process checks.

1.2.1 BACKGROUND
Established more than 5 years ago under the pioneering efforts of Mrs
preeti shukla, the company begins its activities by manufacturing bicycles
saddles as a small business enterprise. In the very first year, 600 cycles
were rolled out. Since then, Yuvraj 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
Indias top fifteen cycle brand Yuvraj continues to maintain an enviable
status in India and abroad. Yuvraj is proud to be one of the top bicycle
producing companies in the world, with a capacity to produce 4 thousands
bicycles per year. Yuvraj has earned not only brand loyalty but also millions
of satisfied customers in India and abroad. This is corroborated by the fact
that Yuvraj Bicycles are being used in over 85 countries.

22
1.2.2 Ten years of Cycling Revolution
Yuvraj name is synonymous with the cycling revolution India.
Since 12 years the company has enjoyed a position of eminence and
leadership in the bicycle industry. This was made possible because Yuvraj
Co. constantly strived to move ahead with never ending zeal, technological
upgradations, backward and forward integration and user friendly
innovations.

THE PHILOSOPHY

Yuvraj 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, Yuvraj Cycles strives to move ahead
with never-ending zeal, technological upgradations, rapid expansion and
user friendly innovations to be
the trend setter.

THE ISO 9001:2000 CERTIFIED COMPANY

Yuvraj Cycles (Ludhiana (Pb)), Indias leading bicycle maker has earned
the coveted ISO 9001: 2001from India. Yuvraj Cycles has industry-

23
recognized level of quality and service that gives customers the assurance
that every single cycle level manufactured by Yuvraj has passed
internationally accepted and strict quality process checks. Yuvraj 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. Yuvraj 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.

Yuvraj 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 Yuvraj. Yuvraj 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.

THE MANUFACTURING UNIT

Yuvraj Cycles has three manufacturing units in Sahibabad (U.P.), Malanpur

(M.P.), and Sonepat (Haryana). With ever increasing demand for Yuvraj

24
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.

YUVRAJ 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 Yuvraj Cycle. Yuvraj 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.

GROWTH

The companys 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 31 August 2003
st

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 todays
life style.

25
 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.

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 Yuvraj
Cycles has a wide range of bicycles including standard roadster, mountain
bike, SLRs (sport light roadster), childrens bike, womens bikes, city bikes,
fitness bikes and sporty exercisers.

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 Yuvraj
Cycles Sahibabad.

THE ROAD AHEAD

Keeping pace with the spirit of Racing ahead of Times, Yuvraj 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.

26
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.

1.3 SWOT ANALYSIS

Complete manufacturing Solutions- From the drawing board to the
streets theenvisaged 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 hasbeen bridged owing to the use
of new softwares such as ERP and adoption of customer
orientedprocedures leading to overall increase in efficiencies.

Continuous Technology Up gradation:- Due to any new

technology that is being created isrendered obsolete after a short

27
 duration. To maintain the market strong- hold upgrading
oftechnology on a continuous basis is paramount. YUVRAJ
CYCLES strives to maintain its technologyat par with the best in the
world.

Cost Competitiveness:- Due to the continuous hunt for cheap

labour by the internationalplayers, 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 globalscale, 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 itslatest technology which it gets
from its counterpart, and ensuring that all the employees
andsuppliers 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 didnot 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 cyclicdownturns.

28
 Most of the local players are dependent on the global majors for
the latest technology andR&D which in turn hampers their cost
effectiveness since the major player is in a betterposition 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 theirbase in the professional and adventure
categories. The bicycle business is flourishing worldwidewith the
poor and the moneyed classes alike are interested in using this mode
to reach theirdestinations. It resulted in the global companies
experimenting with the change and spreadingtheir wings.

The cycle makers are optimistic that the fancy segment would grow to
constitute nearly 70 percent 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. Theglobal industrys steady production
over the past decade demonstrates the bicyclesresilience and its
promise for the future as a climate-benign, healthy, and affordable
transportation alternative.

29
THREATS

Emerging Economies are becoming volume drivers with their

associated costs, quality 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 cycleindustry.

30
CHAPTER-2
RESEARCH
METHODOLOGY

31
CHAPTER-2

Research Methodology
2.1 OBJECTIVE & SCOPE

2.1.1PRIMARY OBJECTIVE

The main objective of the project is

To study the marketing strategies of Yuvraj Cycles and to

compare them with its competitors for the year 2008-09

2.1.2 SECONDARY OBJECTIVE

To find consumer awareness about various Yuvraj Cycles brands in

the market.

To study the perception of the consumers about Yuvraj Cycles Brands

vis--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.

32
2.2 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) : Yuvraj performance in Fancy segment will eventually

help company to obtain No-1 position in the overall bicycle segment.

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

ALTERNATE HYPOTHESIS

Hypothesis 1 (Ho): Yuvraj performance in Fancy segment will not help

company to obtain No-1 position in the overall bicycle segment.

Hypothesis 2(H o): Yuvraj do not provide complete satisfaction and

services to its customers.

33
2.3 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.

34
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.

35
2.4 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.

2.5 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 Yuvraj Cycle, a company which is making its
presence in the international markets.

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

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

2.6 LIMITATIONS OF THE PROJECT

1) The survey was restricted to Noida, Gaziabad and Sahibabad

36
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 cant 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.

37
CHAPTER 3

CRITICAL REVIEW
OF LITERATURE

38
 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 Yuvraj 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.

Yuvraj 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 Yuvraj 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, Yuvraj 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
decades availability of leather started seriously shrinking affecting bicycle
sale adversely. At the point of time the late President of Yuvraj 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. Yuvraj Cycles is highly proactive
towards environment conservation & preservation. Yuvraj Cycles, Sonepat
has been participating and representing in United Nations Organisation at

39
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 Yuvraj is working to cope up for this big shift from roadster
to fancy segment. Yuvraj 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, Yuvraj is also planning to diversify

into other FMCG products for which talks are in advance stages for
international tie ups. Hence in future, Yuvraj 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. Yuvraj 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 childrens 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.

40
Aiming to further increase its presence in the childrens bicycle segment,
Yuvraj Cycles (Sahibabad) Ltd., Indias leading bicycle maker has recently
launched its new range of childrens bicycles-Yuvraj Lil Devils Series.
Affordably priced at Rs 1000/- to 1200/-, the series includes four models
Yuvraj Chunmun , Yuvraj Simba, Yuvraj Crazy Toons and Yuvraj 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.
Todays 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 consumers minds and consideration set as
not just a poor mans 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 wont 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.

41
Export will continue to be the biggest growth sector.

Replacement of aging four wheelers

Growing concept of second vehicle in urban areas.

42
CHAPTER - 4

DATA COLLECTION

43
 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 Yuvraj 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.

44
CHAPTER - 5

FINDING AND
ANALYSIS

45
FINDING AND ANALYSIS
Q1. According to you which is the most selling brand among these?

Series 1
7
6
5
4
3
2
1
0
Hero Avon Atlas T.I Yuvraj Other

Series 1

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

Series 1
4
3.5
3
2.5
2
1.5
1
0.5
0
Hero Yuvraj T.I Avon Atlas Other

Series 1

46
Q3. Which company provides a great colour combination and design in order
of preferences?

5
4.5 Series 1
4
3.5
3
2.5
2
1.5
1
0.5
0
Hero Avon Atlas T.I Yuvraj Other

Series 1

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

7
6
Series 1
5
4
3
2
1
0
Hero Avon Atlas Yuvraj T.I Other

Series 1

47
Q5. Range of matching and stylish accessories relevant to bicycle is provided by
which company?

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Hero Atlas Avon Yuvraj T.I Other

Series 1

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

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
T.I Atlas Yuvraj Hero Avon Other

Series 1

48
Q7. Which company helps you to advertise their model indoor and outdoor?

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Yuvraj Avon Atlas Hero T.I Other

Series 1

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

company, mostly?

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Hero Atlas Avon Yuvraj T.I Other

Series 1

49
Q9. Best deal in products quality and warranty policies are provides by
company?

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Hero Atlas Avon Yuvraj T.I Other

Series 1

Q10. In your opinion which company is the best in the grievances handling?

Series 1
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
T.I Hero Atlas Avon Yuvraj Other

Series 1

50
CHAPTER-6

Conclusion

51
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

52
 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 cant 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.

53
CHAPTER 7

RECOMMENDSTION

54
RECOMMENDATION:

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

one model sales cant 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

55
 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
56
 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

thats where company should be in favour of consumer with a high quality

with low cost in comparison with the other competitor.

57
 BIBLOGRAPHY
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.business-standard.com/stockpage/stock_details.php?
stk_id=505029

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

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

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

58
ANNEXURE

I
 ANNEXURE

QUESTIONNAIRE

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

YUVRAJ

MILTON

HERCULES

HERO

AVON

OTHER

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

YUVRAJ

MILTON

HERCULES

HERO

AVON

OTHER

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

A) ROADSTAR - .

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

B) KIDS - ..

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

C) SHOCKER/GEAR - .

Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

D) MTB/ATB - .

III
Cause:

No such availability of model in other company

No such price of other company bicycle available
Design and colour appearances
Customer demand
Dealer preferences

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

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

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

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

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

which company?

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

5
Q7. Sale policy of which company suits you the most and is profitable?

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

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

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

6
Q9. Satisfactory, beneficial and in favour schemes are provided by which
company, mostly?

YUVRAJ

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

7
Q11. Best deal in products quality and warranty policies are provides by
company?

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

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

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

8
Q13. Which company favours their dealer by organizing most company official
seminars and meetings?

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

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

YUVRAJ

MILTON

HERO

HERCULES

AVON

OTHER

9
10
CASE STUDY

I
 CASE STUDY
TITLE: MARKET EXPANSION STRATEGIES OF YUVRAJ CYCLES

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

the market expansion strategies adopted by Yuvraj Cycles (punjab)

Limited, India's biggest bicycle maker after Hero, Avon,Atlas,Milton, in

response to intense competition and a decline in sales of its Model - the

Yuvraj Goldline. Then came the Funfleet range of sports bikes which

took the market by storm. Yuvraj give tough challenges to the old

players like Hero, TI, Avon, and Neelam. Yuvraj 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 2005, the urban market has stagnated

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

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

2006, targeted at urban adults in their early six years. 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

II
 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 Yuvraj bikes & co (punjab). 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 certificate

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

3
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 Yuvraj Cycles in

marketing to the adult segment.

Comment on the measures being taken by Yuvraj Cycles and Hero to woo the

thirty-plus urban audience and discuss the other strategies that Yuvraj cycles can

adopt to increase the market share of other states .

The Marketing Mix

In order to overcome the problems that Yuvraj faced in the early 2008 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 Yuvraj made efforts to position bicycles as a lifestyle product.

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Product
At the time when Yuvraj 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
Yuvraj realized that it would not be possible for it to compete with the old 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
Yuvraj started selling its Bicycles through its dealers in 1952. All the dealers were

independent individuals with a business orientation.

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Promotion
Over the decades, Yuvraj 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 Yuvraj Bikes & Co. VERSUS COMPETITORS

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INDUSTRY GUIDE : Mr. Jaswinder Singh
FACULTY GUIDE : Mr. Sandeep Sharma
STUDENTS NAME: Harish singh

OBJECTIVE:- To determine the marketing strategies and potential of

Yuvraj company for the upcoming years and to determine To study the
perception of the consumers about Yuvraj Cycles Brands vis--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 Yuvrajs 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.

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