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A MARKETING PROJECT ON
By:-
Sindoor Naik

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TABLE OF CONTENTS
TOPICS Page No.
1. Executive Summary………………………………………………………………3
2. Reason for selecting this product………………………………………….4
3. Concept of the bike………………………………………………………………5-6
4. Current market situation analysis…………………………………………7-8
5. Porter’s 5 forces……………………………………………………………………9
6. SWOT Analysis………………………………………………………………………10
7. PEST Analysis………………………………………………………………………..11-12
8. Segmentation……………………………………………………………………....13
9. Targeting………………………………………………………………………………14
10. Positioning………………………………………………………………………….15
11. Marketing Mix…………………………………………………………………….16-18
12. Product Concept…………………………………………………………………19
13. Marketing action plan…………………………………………………………20-21
14. Bibliography ……………………………………………………………..………..22

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Executive Summary
Indian Bicycle Industry is very large with India producing almost 10% of total
Bicycle production of the world and exporting around $200 million of it. With
many brands present in the bicycle industry, a new approach towards marketing
is needed and also to penetrate competitive market cost competitiveness is
required. The segment of bicycle is mostly unorganized with very few companies
focusing on this quickly growing and lucrative section. As people are very choosy
about their choice these days we would like to customize the cycle with various
models, designs and also different accessories, we will provide a platform for the
various people to come and select their unique cycle in terms of color and
accessories.
Currently in the marketplace, a prospective customer usually goes out on their
own to hunt for a bicycle for themselves. This usually involves dedicating some
time and energy along with the money spent in transportation to and from the
market and home respectively. Also transportation of the cycle to home is also a
major problem. But with home delivery of the cycle along with customization of
accessories and an option of Cash On Delivery with almost the same price as that
with the retailer, this service provides an additional value that customer can drive
out of the company.
Although the online e-portal is a good way to enter the marketplace, the bulk
sales in the beginning will have to be made by the retailer’s dealer network where
both a discount and a credit period will have to be provided to the retailer to
promote the sales. But in the long run it not only creates a valuable dealer
network but also a loyal direct sales network with benefit of both the models.
We are mainly focusing on people who are either eco friendly or health conscious
or just crazy about cycles. They could be male or female and have their choice of
some parts in the bicycle.

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REASON FOR SELECTING THIS PRODUCT
In today’s world there is a lot of need for change to improve the present
ecological condition. The bicycle's invention has had an enormous effect on
society, both in terms of culture and of advancing modern industrial
methods. People have started to buy cycles for various reasons.
Firstly, people who are concerned about the environment are already on the
move buying cycles and using it as a means of commuting to their workplace.
Then there are people who are health conscious as today most of the people are
working in MNC’s and have a desk job. So, to have a healthy living they go in for
bicycle either as a part of their exercise or as their transport.
There are a few sporty people who like cycling as a sport rather they do it for their
hobby or passion and prefer to have a cycle for sure.
When there are so many reasons for a person to think or consider while buying a
cycle, why not develop a bicycle with all the requirements and not just that but, a
little more. That is it also has a battery that allows people to pedal as long as they
want and take a break when they are tired.
With all the above factors, why even think of getting into any other business,
when the right product is in demand. The name of the product is ‘SYNERGY BIKES’
as synergy means combined energy of multiple elements. We have just the right
product i.e. a bicycle with battery as well.
The tag line is ‘PEDAL FOR GREEN EARTH’ which is just apt as cycle is just the right
mode of commuting which is totally eco-friendly.

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CONCEPT OF THE BIKE
The pedal-assist augments the efforts of the rider when they are pedaling. These
battery operated bicycles have a sensor to detect the pedaling speed, the
pedaling force, or both. Brake activation is sensed to disable the motor as well.
There is a dynamo which can be attached or detached by just pressing a button.
When the button is pressed it will attach the dynamo to the tyre and it will
convert mechanical energy to electrical energy which is stored in the battery. The
main purpose of the dynamo is in the slope when there is no need of pedaling,
the movement of tyre will help the dynamo transform the energy and this indeed
will help in energy conservation.
Technical Specification 180 W Brush Type DC Motor Commuting with low fatigue
at a top speed of 24KMph 12V 12 Ah * 2 LA Battery extends the riding range –
30kms on a single charge. Controller with charge indicators Operating cost – Less
than 10 paise/ Km Charger 220V AC,50Hz,1.0A Charger Lesser maintenance cost
Brake Cut Off Assembly Normal pedaling is possible when not on power assist
mode. Thumb throttle Detachable battery, can be taken inside the house for
charging. PU saddle V Brakes Centre stand Wheel reflectors Softer Rubber Grips
Rod Carrier with hooks to carry lunch box
Easy Detachable Battery box with 12V -12Ah Battery 2 Nos. Broader, soft,
adjustable saddle & Low step tho frame 200w BLDC Motor with drum brake
Plastic Dress guard Pedal assist sensor New Nylon Tyre Seat Clamp Steel Center
stand Front fork suspension Heavy duty spokes Front drum brake Wire mesh steel
basket Extra PU Foam Cushion Saddle LED Head Lamp With electric horn, Hi-riser
Adjustable Handle bar & Stem.
Speed Selector Adjust pedaling speed as per your comfort Accelerator For
effortless riding, when you don't want to pedal Ignition switch Option of riding in
auto or manual mode 26 " Urban Profile Tyres For comfortable ride and smooth
power delivery. Soft Aero Grips For comfortable throttle use. Suspension fork

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with Disc brake system for comfortable ride and excellent braking on any surface.
Center Stand For stable parking Quick Release (Seat) Adjust your seat height as
per your convenience EXIDE sealed lead acid battery pack Guaranteed
performance and longer battery life of up to 10000 km. DC Motor and Digitized
Controller For smooth power delivery of up to 24 km/hr, and Enhanced riding
range of up to 30 km.

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CURRENT MARKET SITUATION ANALYSIS
MARKET SHARE OF THE COMPETITORS-
As with other durables, consumers in the Rs. 17 billion Indian bicycle industry too
seem to be moving up the value chain. With sales of over 12 million units a year,
India is the second-largest player, after China (50 million units), in the
approximately 100-million-unit global cycle market. Entering a new market where
the competitors are established and flourished is not such a good idea. Some of
the good Companies are already leading in this market and has got there won
place.
The market share of bicycle in June 2013 had Hero Cycles at the top followed by
Hercules and Avon respectively. The pie chart and table below will show the
market share of the competitors in detail:
Cycle Brands Market Share
Hero 40%
Hercules 22%
Avon 17%
Atlas 10%
Firefox 3.5%
Bmx 2%
Others 6%

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According to above table and Pie chart Hero cycles are leading with 40% of
Market share followed by Hercules with 22% Market share. The others like Avon,
Atlas, Firefox and BMX are at 17%, 10%, 3.5% and 2%.
Ranking according to sales 2012-2013
Ranking of Bicycle Brands Annual Sales(Cr.)
Hero Rs 1450
Hercules Rs 378.29
Avon Rs 300.59
Atlas Rs 245.82
Firefox Rs 7.38
Bmx Rs 2.42
With the launch of the Synergy Bikes it is sure to be at the 5th
place in next 6
months with 6% in the market share charts and who doesn’t wants to reach the
top, the aim of Synergy Bikes is to reach zenith in the next 5 years till December
2018. Strategies will be altered according to the advancement made by the
company.

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PORTERS 5 FORCES
Availability of Substitute Products.
(High)
Inline Skating, Hiking, Pro Scooter, Solar powered
Lightweight two wheeler bikes, Geared Cycles,
Exercise Equipments, Fitness Clubs etc
Bargaining
power of
supplers.
(Moderate)
 Metal Industry.
 Rubber and
Tyre Industry.
 Battery
Industry.
Competitive rivalry within
the industry (High)
The key players in the bi-cycle
industry are Hero Cycles,
Hercules and Atlas.
 Price Wars ( Moderate )
 Investment in innovation (
High )
 Intensive promotion (
High )
Threat of new entrants. (Moderate)
 Existing motorbike manufacturers with already established brand
loyalty.
 Foreign bicycle industries with technological expertise in eco bicycle
manufacturing.
Bargaining Power
of Customers.
( Moderate )
A buyer has an added
advantage over a
seller as there are
over 3-4 popular
companies in this
segment and the
buyer is aware of Eco
friendly cycles. This
gives the buyer a
chance to switch
brands. So pricing
should be competitive.

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SWOT ANALYSIS
STRENGTH OPPORTUNITIES
 High oil prices, people seeking alternative
transport which are environment friendly.
 Government schemes encouraging
customers to buy bikes
 Innovative technology used, attracting
more customers
 Less R&D costs (hardly any model changes)
 Outsourcing some raw materials
 Increase in adventure sports activities.
 Outsourcing more raw materials.
 Expansion in other foreign markets where
local made bicycles are expensive.
 Suppliers of raw materials in the US and
other foreign markets.
 Government funding for future projects.
 Increasing demand for eco friendly motor
driven bicycles.
WEAKNESS THREATS
 Growing competition.
 “Synergy Bike” is unique, but can be easily
copied by competitors.
 Not benefiting from cheap labor costs (not
making use of China, Taiwan).
 Lack of high speed.
 Companies mass producing bicycles on
similar concepts abroad like China.
 Not being able to meet demand.
 Mass import of eco friendly bicycles.

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PEST ANALYSIS
Political/Legal
The bicycle manufacturing industry includes a political / legal aspect. From a
global standpoint, there have been political disagreements and legislative
measures regarding the monopoly of bicycle products and technologies. The
beginnings of “SYNERGY BIKES” provide details regarding the obstacles of
obtaining and managing the powers between basic or common bicycles and
technologies. The onset of the 20th
century initiated the initial progress of global
movement for excellent bicycles and technologies.
 Tax policies, trade regulation, political influence and some of the rules &
regulations of government policies which are considered as political
analysis.
 Ecological/environmental issues.
 Government schemes in favor of cyclists.
Economic
On the microeconomic perspective, companies like SYNERGY BIKES have utilized
Information Technology to support the progress of their business. They have
taken advantage of modern technologies as opposed to its rivals. In major spots
all over Taiwan and China, the majority of people have their keen interests in
using these kind of bicycles for their traveling necessities.
On the macroeconomic perspective, experts in SYNERGY BIKES discovered a
fundamental connection between high quality bicycles and economic
development. Few argue the existence of a link even though some state that it is
a major fault to see the connection as causal. Because of the economic benefits
being provided by top quality bicycles and technologies, there is an emerging
uncertainty concerning the disproportionate access to bicycles amongst various
nations of the globe—this is pertained to as the digital divide.

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 Economic growth, exchange rate and inflation rate.
 Home economy going into recession
 Indian jobs and spending
Socio-cultural
Bicycles and its technologies are having an important role in social relationships.
Over the past few years, the emergence of social networking websites that are
marketing bicycles and technologies has ballooned tremendously (Fine, 1999).
These websites allow the bicycle enthusiasts to communicate with each other as
well as post images, happenings and profiles for other individuals to check.
 Popularity, subculture, mobility, safety.
 Change in consumer lifestyle
 Good company image
Trends/Factors of Technology
High quality yet affordable bicycles and technologies are still Giant Bicycles’
largest profit generator, but due to the developments in the bicycle
manufacturing industry, this is now developing. Bicycles are not about all basic
travelling machines anymore but now more about being creative.
 Efficiency in Electric motors and Dynamos used.
 What is innovative technology today will be commonly used by other
companies in the future.
 Other companies can produce the technology for a considerably lower price

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SEGMENTATION
The synergy bike is a combination of style, economy and safety. To give a better
view of the segmentation done for the synergy bike
The above table shows segmentation on the basis of age, income, speed, price
sensitivity, health, passion and environment conscious. The age factor also plays
an important role in segmenting the battery operated cycle.
With the specifications and the look given to the bicycle it tilts more towards the
youth. But the question arises, is it affordable for them? The answer would be a
simple yes. As the synergy bikes will not be priced high so any one who desires to
buy one should be able to own it.
For the business class, the synergy bike will give them a comfortable and safe ride
to their destination.
Business cool Business
practical
Youth cool Youth practical
Age 30-40 40-60 18-25 20-30
Income Med Low High High
Speed Med Low High High
Price
sensitivity
Low Low Med Med
Health
Conscious
Med High Low Med
Passion Med High High Med
Environment
conscious
Med High Low Med

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TARGETING
As the bicycle should be available to everyone, the bicycle must also have a stylish
look as well as speed which should attract everyone and synergy bike offers all
this.
We have targeted every age group people as we have made different models for
male, female and for sports. As synergy bikes provide a safety which cannot be
compromised, price factor is also under control as the synergy bike is not highly
priced. Another target group would be the race enthusiasts as synergy bike gives
45 km/hr speed. The combination of price and speed is rarely available which our
synergy bike gives.
We have targeted business class people who are very conscious about the
environment and are very concerned about their health which synergy bike gives
them.

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POSITIONING
R
E
A
S
O
N
A
B
L
E
HIGH
DURABILITY
E
X
P
E
N
S
I
V
E
LOW
DURABILITY
Ningbo Twirl Motor
Co
SYNERGY BIKES
S.K. Bikes
Laxmi Industries
Wuxi Jietong
Autocycle Co.
EAI BIKES
Hangzhou Monca
Technology Co.
Hero Ecotech LTD
HERCULES

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MARKETING MIX
PRODUCT
PRODUCT & VARIETY
Product variety includes three variants wiz
Male: models specially designed according to male biking tastes, likings &
features including trendy models for young riders.
Female: Similarly for female bikers bikes are designed as per women comforts,
style, fashion & features.
Unisex: A unique designed model that servers both male & female from the age
between 25-55 years of age.
Sports: Specially designed with speed in mind with light weight body made from
carbon fibre powered by high power battery & performance chain link.
Quality: We offer our clients an excellent quality range of Synergy Battery Cycle
which are made from high grade quality raw materials.
Services: service centres are available within every 30kms in the city with spare
parts & battries available at the service centre as well as in the showroom.
Warranties: warranties include 1 year warranty for body parts & 2 year warranty
for battery & motor.
PRICE
Model Male
(GRACE)
Female
(SWOOP)
Unisex
(LINK)
Sports
(ENERTIA)
Price 13K-15K 13K-15K 13K-15K 40K-70K

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PROMOTION
Sales promotion: Auto expo for exposure in the market, college festivals to make
a trend among youngsters, sponsoring fashion event to create a fashion
statement for the product in the city. Test rides at potential mountain biking sites.
Advertisement :
IMC which includes mass media, on air advertisement, bus covers, taxi adds,
billboard ads, news papers.
Public Relations:
Service reminder calls, pick up & drop facility, 6 months free servicing, home
servicing facility, self serving kit & training
Direct marketing:
Showroom on the move with test drive bikes, Catalogues, Mass text messages,
Mall Displays & bookings

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PLACE
1) Colleges
2) Malls
3) Cosmopolitan clubs
4) Gymkhana’s
5) Sports complex
Covering all the major metropolitan cities with high traffic including Mumbai,
Bangalore, Chennai, Kolkata & Delhi.

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MARKETING ACTION PLAN
Phase I
Before Launching the Bicycle
Before the launch of the synergy, a few costs need to be managed for the
inventory, location and promotions. Promotions for the synergy are done at a
higher level incurring extra cost of hoardings, sponsorships and media ads.
Cost of Inventory
Factory set up INR 4, 00, 00,000
R&D for the engine INR 20,000, 00
Testing INR 9, 00, 000
Showroom set up INR 4, 50,000 * 4 showrooms
Service Station INR 1, 00,000 * 4 cities
Promotional Activities
Newspaper INR 2, 75,000
Hoardings INR 1, 50,000
Media INR 4, 00,000
TOTAL COST BEFORE THE LAUNCH OF THE BIKE (INVESTMENT)
INR 4,42,75,000
Phase II
After Launching the Bicycle
Promotional Activities
Newspaper INR 2, 45,000
Hoardings INR 1, 20,000
Media INR4, 00,000
Sponsorships INR 4, 00,000
Freebies
Test Ride Vehicles INR 2, 70,000
Merchandise INR 2, 00,000
Insurance INR 2, 20,000
Discount INR 1, 45,000
TOTAL COST AFTER THE LAUNCH OF THE BIKE
INR 20, 00,000

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Phase III
Maintaining the Brand Image
Newspaper INR 1, 20,000
Hoardings INR 2, 45,000
Media INR 3, 00,000
Insurance INR 1, 20,000
Events INR 2, 75,000
TOTAL COST INR 10, 60, 000
SALES RETURN
Total cost spent on all phases: INR 4, 73, 35,000
Time taken to recover the cost INR 4,73,35,000 in two years is the target of
synergy.
Cost of Production per bicycle with labor cost, materials, factory cost and
miscellaneous expenses come up to INR
According to the calculation, if YAK sells 8,400 bikes per month, i.e. 1,00,800 bikes
a year, in a span of two years it will cover up the cost incurred in all the three
phases.
14, 000 + 14, 000 + 35, 000 / 3 = 21, 000 approx.
Taking the average in consideration,
4,73,35000 / 21000 = 2254bikes
Our target in two years is to sell 203055 bikes to cover up the investment cost and
other phases.

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BIBLIOGRAPHY
C4cycle.com
Herocycle.com
En.wikipedia.org/wiki/bicycle
www.indiamart.com/bicycle
www.batribike.com