Carbtrek

Innovation at its best

Objectives
Our objective is to create a brand
name with our new innovations and
design in bicycles.
First we will be focusing only the
urban segment with high specific
designs and later on expanding our
business to rural segment.
The price of our bicycles would be
high as we enter a niche market
focusing more on technology and

Specialized High Range

Cycles
We will be
producing cycles
having Carbon
bodies
Designs capturing
the imagination of
Young generation
Tubeless tyre
technology for
better grip and
speed

Strategic Planning
1.Assessment of Indian Bicycle
Market
-Indian market 2nd largest bicycle
manufacturer in the world.
-maximum sales of bicycles in the
range(Rs 2500-3000)
-It produces 10% of bicycles in the
world(125mn)
-Annual Domestic demand is 10mn units
government use-2.5mn
-Growth of Bicycle sales has been sluggish
only 4-6%

2.Market Share(%)

Hero

11%

Ti

10%
40%

Avon
17%
Atlas
22%

Others

3.Which parameter is more important

Performance
Major
Streng
th

Marketing
Company
reputation

Market share

Customer
retention

High

Finance

High

Cash flow

Financial
Stability
Manufacturi
ng

Neutra
l

Minor
Weakne
ss

High

Minor
streng
th

Importance
Major
Weakne
ss

Hig
h

Hig
h
weak

Hig
h

neutr
al

mediu
m

mediu
m
minor

mediu
m
neutr
al

High

Medium

Hig
h
Hig
h

Low

Performance
Major
Streng
th

Minor
streng
th

Neutra
l

Minor
Weakne
ss

Importance
Major
Weakne
ss

Hig
h

R&D

High

Hig
h

1
0

New
Technologies

High

Hig
h

1
1

Design

High

Hig
h

Distribution

neutr
al

1
2

Retailers

neutr
al

1
3

Online
Retailers

neutr
al

Medium

Hig
h
mediu
m
Hig
h

Thus, Marketing, Manufacturing and

R&D should be given more attention
than others.

Low

4.PESTEL environments
Political and Legal
-Strict Quality control for manufacturers
-High Excise duty

Economic
-Raw Materials are easily available in India
-Better labour

Social
-Scope for Urban population is more as it deals with design
and technology
-Will attract youths with its design, comfort and Technology

 Technology
-Innovation, Design and Smart
Technology
-One of our major factors of success
would be
technology

Environment
-Its environment friendly
-doesnt cause pollution

5.Porters 5-force model

Rivalry among existing
competitors(High)
-High fixed cost
-High exit barriers
-Product differentiation is difficult

Threat of a New Entrant(Medium)

-In the current scenario Chinese bicycle companies
entering the market
-Other new entrants with better Technology and
Design

 Threat of Substitute(Low)
-Cycle substitutes have higher Pricing
-Environmental problems caused by other modes of
Transportation
-Cycling is good for health

Bargaining power of
Consumers(High)
-Consumers are price sensitive
-Chinese carbon cycles will attract consumers

Bargaining power of Suppliers(Low)

-Many suppliers present
-No product differentiation

6.SWOT
Strengths
-Innovation and Design
-Latest Machinery
-Fulfils the ISO requirements at all Levels
-Comfort
-Strong R&D

Weakness
-Rising Input Costs
-Lack of Experience

 Opportunities
-Expansion of the business
-Try to design cycles for various segments

Threats
-Non-Acceptance of the new Design and Technology
-Dominance of other existing players
-Cheap products from China
-4-6% sluggish growth of bicycles in India
-Entrance of Chinese companies in the market

4ps
Price
- Starting from (Rs 20000)
-Will depend on the carbon fiber polymer we get from
the suppliers
-Technical gadgets will add to the cost

Place
-Urban locations having interest for technology and
design
-Most of the public are health conscious and would
like to have a comfortable bicycle
-Depends on the distributors or dealers

 Product
-High end Carbon cycles basically for youths, design
and technological enthusiast
-Specific Designs for Indian roads with High comfort

Promotion
-Digital media
-Social media
-Advertisements
-Unique Marketing Strategy

Raw Materials

Carbon fiber
Tubeless Tires
Breaks
Rubber Pedals
Crank-set
Gear-set
Technical Gadgets

Costing of the product

Carbon fiber cost Rs. 6000 per cycle.

Tubeless Tyres cost Rs. 1500
Brake And Brake Wire cost Rs. 600
Rubber Pedals Cost Rs. 400
Crank-set Cost Rs. 4500
Gear Set cost Rs. 2000
Total Production Cost Rs. 15000

Plant Location
Gujrat, Vadodara
Goa
Carbon fiber making industries in
Gujrat and Goa

Marketing Strategy
TradeShows:Carbtrek Deals will be visible at the two major industry
trade shows. 75% of the retail bicycle shops attend at least one trade
show a year. The shows provideretailers an opportunity to view
upcoming products and chat withrepresentatives from the
companies as well place pre-season orders.
Advertisements:Carbtrek Deals will be advertising in Bicycle
Retailer, THE industry magazine. Ninety-eight percent of the bicycle
shops in India receive a copy of Bicycle Retailer making the
advertising opportunities especially valuable.
Website:Carbtrek Deals will develop a website that includes a
current catalog of their offerings. This will be the most up-to-date
source of product information and availability. All advertising
activities and trade show presence will highlight the website as an
indispensable source of information

Target Markets
The two segments that Carbtrek Deals will be targeting are:
Independent Bicycle Shops:The large majority of bicycle retailers
are independently owned sole proprietorships. They are usually owned
by one person and range from three to ten employees, depending on
the season.
Chain Bicycle Shops:Although chains are not the predominant
business form, most large cities (over 200,000 people) have at least
one chain serving the community. Sometimes the chains are
franchises with different owners, other times they are same owners
with multiple stores.

The majority of sales will be to the independent bicycle shops. The

reason for this is most of the chains have a very uniformed product
offering that does not deviate for specials and closeouts. The chains
tend to value consistency of product offerings at the expense of
increased profit margins on special items.

Distributors