Abstract

The growing preference for two-wheelers has affected the purchase of bicycles in India. Since the late 1990s, the urban market has stagnated while the purchases in the rural market have been decreasing. It was in this scenario that Chennai-based TI Cycles launched a range of bicycles in early 2005, targeted at urban adults in their early thirties. 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 strategies to get a share of the rural and urban markets.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Product innovations in the bicycle industry
• Value added services to attract customers
• and Strategies for rural bicycle market.

Keywords

Bicycles, Murugappa Group, Urban Adults, Hercules, BSA Cycle Run, BSA City, Hero Group, Ergonomically Suitable, Direct Selling Network(DSN), ICICI