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INTRODUCTION Tube investments of India Ltd is one of the famous and reputed company located at Chennai and its brand own very good position in the Chennai market.

The project is about the market potential identification of the product Hercules E3 cycle. Marketing of this product is purely undertaken by the marketing department of Ti cycles.

The project aims at finding the real potential for the product Hercules E3 cycle in Chennai. Also the project aims at other issues such as purchase behavior of consumer and to identify the various ways to promote the brand.

The sample size for the project is 200.The sample design is convenient sampling.

The research study used in the project includes the descriptive research, and research methodology user here is survey.

The sampling unit is some areas in Chennai. The coverage duration for this project is about three months.

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INDUSTRY PROFILE ABOUT BICYCLE A bicycle or bike is a pedal – driven land vehicle with two wheels attached to a frame, one behind the other. First introduced in 19th-century Europe, bicycle evolved quickly into their familiar, current design. Numbering over1000, 000,000 in the world today, bicycles provide the principal means of transportation in many regions and a popular form of recreational transport in others. To distinguish a bicycle from a motorcycle, it is also called a pushbike. The bicycle in one of the most notable of human invention.The basic shape and configuration of the frame, wheels, pedal, saddle and handle bars has hardly changed since the first chain-driven model was developed around 1885, although, many important detail improvements have been made since, especially in recent years using modern materials and computer-aided design. A remarkable aspect of the bicycle is its widespread adoption in many different fields of human activity, e.g. as a child’s toy in adult recreation and fitness, as a means of everyday transport, in cycle- touring as a barks of cycle sport (branches: tack, off- road or MTB, downhill, cycle-cross, time tailing, road racing, cycle speedway, cycle polo, BMX), and as a basis for static gymnasium or home fitness versions. A human being traveling on a bicycle at low to medium speeds of around 10-15 mph (16-24kph), using only the energy required to walk, in the most energy – efficient means of transport generally available. Is day, which increases with the square of speed, requires increasingly higher power outputs relative to speed. A bicycle in which the rides lies in a prone position and which may be covered in as aerodynamic faring to achieve very low air drag in referred to as a recumbent bicycle or human powered vehicle.

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The bicycle has affected history considerably in both the cultural and industrial realness. In its early years, bicycle construction drew on pre-existing technologies; in turn, to others, newer areas. Beyond recreation and amputation, bicycles have been adapted for use in many occupations, including the military, policing, courier services, and sports. A recurrent theme in bicycling has been the tension between bicyclists and drivers of motor vehicles, each group arguing for its fair share of the world’s roadways.

THE HISTORY OF BICYCLE INDUSTRY

No single time a person can be identified with the invention of the bicycle. Its earliest know forebears were called velocipedes and included many types of humanpowered vehicles. One of these, the scooter-like dandy horse of the French comet de sivrac, dating to 1970, was long cited as the earliest bicycle. Most bicycle historians now believe that these hobbyhorses with no steering mechanisms probably never existed, but were made up by Louis bawdry de saunier, a 19th- century French bicycle historian. The most likely originator of the bicycle in German Baron Karl Von Drais, who rode his tenants. He patented his draisine, a number of which still exist, including one of the paleis let too museum in Apeldoorn, the Netherlands. These were pushbikes, powered by the action of the rider’s feet pushing against the ground. Scottish blacksmith Kirkpatrick Mac Million shakes creative credit with von Drais, for adding a treadle drive mechanism, in 1840 that enabled the rider to lift his feet off the ground while driving the rear wheel. However, some reports describe Macmillan’s vehicle as more of a “quadricycle”. In the 1850s and 1860s, Frenchman Ernest Michaux and his pupil Pierre Lallement took bicycle design in a different direction, placing pedals on an enlarged front wheel. There creation, which came to be called the “Boneshaker”, featured a heavy steel fame on which they mounted wooden wheels with iron tires. Lallement emigrated to America,

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where he recorded a patent on his bicycle in 1866 in new haven, Connecticut. The boneshaker was further refined by James Starley further refined the Boneshaker in the 1870s. He mounted the seat more squarely over the pedals, so that the rider could push more firmly, and further enlarged the front wheel to increases the potential for speed with tires of solid rubber, his machine became known as the ordinary. British cyclists likened the disparity in size of the too wheels to their win age, nicknaming it the penny-farthing. The primitive bicycles of this generation were difficult to ride, and the high seat and poor weight distribution made for dangerous falls. The subsequent dwarf ordinary addressed some of these faults, by adding gearing, reducing the front wheel diameter, and setting the seat further back with no loss of speed. Having to both pedal and steer via the front wheel remained a problem. Staley’s nephew, J.K. Starley, J.H. Lawson, and Shergold solved this problem by introducing the chain and producing rear- wheel drive. These models were know as dwarf safeties, a safety bicycles, for their lower seat height and better weight distribution. Starley’s 1885s Rover is usually described as the first recognizably modern bicycle. Soon s the seat tube was added, creating the double triangle, diamond frame of the modern bike. While the Starley design was much safer, the return to smaller wheels made for a bumpy ride. The next innovations increased comfort and ushered in the 1890s golden age of bicycles. In 1885 Scotsman john Boyd Dunlop introduced the pneumatic tire, which soon became universal. Shortly there often the rear free wheel was developed, enabling the rider to coast without the pedals spinning cut of control. This refinement led to the 1897 invention of coaster brakes. Derailleur gears and hand-operated; cable-pull brakes were also developed during these years, but were only slowly adopted by casual riders. By the turn of the country, bicycling dubs flourished on both sides of the Atlantic, and touring and racing were soon the range. Successful early bicycle manufactures included Englishman frank Bowden and German builder Ignaz Schwinn. Bowden started the Raleigh Company in noting ham in the1890s and soon was producing some 80,000 bicycles a year. Schwinn emigrated to the

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united states. Where he founded his similarly successful company in Chicago I 1895. Schwinn bicycles soon featured widened tires and spring-cushioned, padded seats, sacrificing some efficiency for increased comfort facilitated by connections between European nations and their overseas colonies. European- style bicycles were soon available worldwide. By the mid. 20th century bicycles had become the primary means of transportation for millions of people around the globe. In many western countries the uses of bicycles traveled off a declined, as motorized D became affordable and car- centered policies led to an increasingly hostile road environment for bicycles. In North America, bicycle sales declined markedly after 1905, to the point where by the 1940s they had largely been relegated to the role of children’s toys. In the other part of the world however, such a china, India and European countries such as Germany, Denmark, and the Netherlands, the traditional utility bicycle remained a mainstay of transportation, its design only gradually changing to incorporated handoperated brakes and internal hub gears allowing up to seven speeds. In the Netherlands, such so- called granny bikes have remained popular, and are again in production. Especially in austere Dane they are often colorfully painted and or otherwise decorated. Preservation spawned a renaissance of bicycling in the late1960s. Bicycle sales in the United States boomed, largely in the form of the racing bicycles long used in such events as the hugely popular Tour de France. Sales were also helped by a number of technical innovation that were new to the us marked, including higher number of gears. While 10 speeds were the rage in the 1970s, 12-speed designs In North America, increasing consciousness of physical fitness and environmental were introduced in the 1980s and today most bikes features 18 or more speeds. By the 1980s these newer designs had driven the three-speed bicycles from the roads. In the late 1980s the mountains bike became particularly popular, and in the 1990s something of a major fad. These task- specific designs led many American recreational cyclists to demand a more comfortable and practical product. Manufactures responded with

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the hybrid bicycles, which restored many of these features long enjoyed by riders of the time-tested European utility bikes. INDUSTRY SCENARIO •

4 Major manufactures- Hero, TICI, Atlas, Avon



Industry capacity-250 lakhs cycles per annum (as on 2009)



Industry capacity utilization-91%(as on 2009)



Industry penetration- 54 %(as on 2009)



Concentration of component supplies at Ludhiana/ Delhi



Approx. 3500 deals across the country

MAJOR PLAYERS (as on 2009) Company HERO TII ATLAS OTHERS

Volume (Lakh Nos.) 53.85 28.83 28.30 7.68

Market Share 40% 26% 28% 06%

India is the second largest maker of bicycles in the world. Around a million bicycles (valued at rs.1500 crore) are produced each year. Ludhiana has been the prime source of components fir the cycle industry in India. Recently, vendor bases have come up in other parts of the country there by diluting the geographical risk. Cycles can be classified into two segments- standards and specials. There are four major players- Hero cycles, TI cycles, Atlas cycles and Avon cycles. With changing environment, the market for standard for standard bicycles has become highly price sensitive allowing small players to take aggressive price postures. The special category

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bicycles are more differentiated by design and find market in kids, students and youth, for fitness and leisure. The bicycle industry in India has witnessed continue downward tend in demand over the last three years. In 2004-2005, there was 7 percent drop in volume over the previous year. Increased urbanization, in proved public transport system, increased affordability of motorized vehicles and limited road-space for bicycles (there in complete absence of “cycles only” lanes even in most congested and polluted cities) are said to be some of the causes for the down turn. However, the bicycle is still the first vehicle for most children and there is growing use of bicycle as health and leisure products.

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COMPANY PROFILE

MURUGAPPA GROUP

The Murugappa group, headquartered in Chennai, India, is a $1.5dillion conglomerate with interest in engineering, abrasives, sanitary ware, fertilizers, finance, bio-products and plantations. It has 29 companies under its umbrella; eight are listed and actively handed on the national stock exchange and the Bombay stock exchange. Together, they have over 28,000 employees. The business has its origins in 1990, when Dew a bahadur AM Murugappa chattier established a money-lending and banking business in Burma (now Myanmar), which then spread to Malaysia, Sirlanka, Indonesia and Vietnam. A century down the line, it has withstood enormous vicissitudes (including strategically moving its assets bank to India and restarting from scratch in the 30’s before the Japanese invasion in world war 2) to became one of the country’s biggest industrial houses. The group turn over crossed the $1 billion mark in 2003-04, with an impressive growth of 25% Rs. 42,060 million in 2002-03. The group clocked a 40 percent jump in profit before tax over the previous year. Murugappa Group’s consolidated turn over for 2004-05 crossed $1.44 billion. The group achieved a growth of 20 percent over the previous year. The group is a market leader in India across a spectrum of products like sanitary ware, fertilizers, abrasive, automotive chains, car doorframes and steel tubes. Neemzal, a neem-based organic pesticide, is the country’s best known brands like BSA and Hercules in bicycles, parry ware in sanitary ware, parry’s spiraling and parry’s Beta carotene in nutraceuticals, ball master and Ajax in abrasives, Gromor and Paramfos in fertilizers, and many more come from the Murugappa group Its companies have tie-up with Borg-Warner of the USA, wend of Germany. Morgan Crucibles of the U.K and Mitsui Sumitomo insurance of Japan. It has registered 43 8

International patents for its research and development innovation. The group has grown consistently through its decisive and visionary response to change times. Its pioneering efforts, steadfast commitment to ethical business practices and its dogged pursuit of new arras to extend its business acumen have brought in its wake several prestigious national and international awards. Social commitment has always been the cornerstone of the group’s ethos and its has been at the forefront of eco-conservation, public health, and education in the communities where its companies operate, since 1957. It runs four schools, a polytechnic college and four hospitals. Besides, the group runs a research and development center for rural development the sir AMM Murugappa Chettiar research center (MCRC), which has been a derigning simple, cocst-effective technology for local artisans since 1977. The Murugappa group has 29 companies active in the area of engineering, abrasive, sanitary- ware, fertilizers, finance, bio-products and plantations. The major companies of the group all: •

Carborumdum universal limited



Cholamandalam investment& finance company Ltd.



Coromandel fertilizers Limited



EID parry Indian Limited



Godavari fertilizers Limited



Parry Agro industries Limited



Parry nutraceuticals Limited



Tube investment of India Limited

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Name of the Organization

% of turn over

TII

28%

EIDP

34%

CFL

16%

CUMI

8%

OTHERS

14%

TUBE INVESTMENTS OF INDIA LIMITED A reputed engineering company in India, driving excellence in work and part of the US $1.5 billion India conglomerate, the Murugappa Group

CORPORATE CHRONICLE •

Incorporate in 1949- TI cycles of India (TICI) in collaboration with TI, UK the world’s largest manufactures of bicycles.



A tube product of India (TPI) was established in 1955 with the objectives of providing backward integration to bicycles.



TPI merged with TICI in 1959. Name of the company changed to tube investments of India Ltd.



TPI established a cold Rolling mill in 1962 for the production of cold Rolled close annealed steel strip.



TPI established EOU at Avadi in 1996



Tube plant commissioned in 1997 at Shirwal, Maharashta.



Facilities to produce doorframes for Maruti 800 cc and Hyundai Santro in 1998



Cycle’s plant at Nashik set up in 2001.

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Tube Investments of India limited is the flagship company of Rs. 6250 cr. Murugappa Group. It manufactures precision steel tubes and ships, car door flames, auto motives and industrial chain and bicycles. The company has 13 manufacturing assembly units spread across the country. Marketing offices that act as interface between customer requirements and production train ably support these units. The company’s shares are listed on the national, Mumbai and Chennai stock exchanges within India and GDRS on the Luxembourg stock Exchange. The company’s product segments are- Engineering, metal formed products and cycles. •

TI is the market leader in precision tubes with 61 percent market share by virtue of its quality & application engineering capabilities



TI is a leading players in auto motive chain with 35 percent market share by virtue of its quality, cost& delivery and association with two wheeler major



TI is a leading player in bicycles segment with 30 percent market share by virtue of its brand equity, product development capability and proximity to the markets.



TI is the market leader in roll formed car door flames with 57 percent market share by virtue of its cist efficiency, association with key auto majors and roll forming capabilities



The company reported a turn over of Rs. 1563.39cr and profit after tax of Rs. 98.55cr in 2004-2005

The company also has an interest in the services sector through its investments in Cholamandalam Investment and finance company Ltd and Cholamandalam MS general insurance Co.Ltd.

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Tube investment of India was one of the most important postindependence forays of the Murugappa group into manufactures. It was a niche the group identified as a trump card for a nascent nation; marking the poor man’s vehicle, the bicycle. It was originally founded as TI cycles of India, in 1949.Group companies Tube products of India and TI miller-, which manufactured cycle, lamps and dynamo sets-were merged with the company in 1959 and 1984 respectively. TII in the second largest- manufacturer of bicycles in India, marketing top. Brands like Hercules, BSA and Philips, and had a market share of 31 percent in 200304.In the value-added special segment, TI in the leader, with a 50 percent market share. More recently, the company entered the promising health conscious ‘exercise’ bicycle’ segment in 2002-03. TI cycles of India, one of the leading bicycle manufacturers in India, started in 1949, has been at the forefront of innovation and is a pioneer in the market of cycles. TI cycles are the makes of country’s most famous brands like Hercules, BSA and Philips cycles. The company’s vision is to be a world wide leader in cycling and solution by instilling the pride of ownership in the customers”

Brands Hercules– 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 heroisne and integrity, to which the brand’s customers subscribe in their own lives. BSA- another flag ship brand of TI cycles, BSA stands for Birneighani 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 teams and adults. Certificates: certified with ISO 9002 &ISO 14001 Exports: TI cycle is an exporter to many regions across the global-Europe, south East Asia and Africa; being some of them 12

Locations: Chennai (corporate HO), Nashile, Noida, Durgapur, Bang lore, kolkatta, Patna& ludhiana A subsidiary, tube products of India was set up in 195 in collaboration with tube products (old bury) Ltd, UK to produce electric resistance welded (ERW), cold drawn welded (CDW) tubes and draw over mandrel (DOM) tubes. In 1957, tube investments of India started production of cold-rolled close annealed steel strips, in collaboration with TI, UK, primarily to meet in- house and group requirements

Though started as a backward integration project for the manufacture of bicycles, today, TPI is a major preferred supplies of precision welded tubes to major automotive companies in India and abroad. It is the undisputed leader in the Indian market for precision welded ERW & CDW steel tubes, with the widest variety and range in terms of size as well as material gracles offered. TPI started operation at Avadi, chennai, but has expanded with two more plants satirically located in western and northern India Another subsidiary, TI metal forming, is a pioneer in coid roll forming. It manufacturers and dupplies value- added metal formed components like car door flames, sash/ division channels, door guide rails and bar assembly. It has plant in chennai and Bawal(near Gurgaon). Both plants in chennai and QS 9000 certified. The chennai plant is ISO14001 certified. A third plant has been set up near Baroda (in Gujarat state, western India) to manufacture and supply doorframes, impact beam, bar and rail assembly for general motors, India. Its client list includes Maruti udyog and Hyun TIDC INDIA formerly known as TI Diamond chain Ltd, was establisted in 1960 in collaboration with the Diamond chain co, USA. Starting as a marker of bicycle chains, it now makes over 1,000 varieties of chains- in industrial chains TIDC produce from tiller chains, leaf chains and conveyor chain to in dustrial power drive chains, engineering class chains, in automotive TIDC produces motarcycle drive chains

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ands engine mechanism chain and fine blank parts. annually production runs to 45 million ESS feet, and commands 40 percent of the domestic market share. The company is known for developing high performance chains, for specific applications and machinery. Some of TIDC’S popular brands are Diamond and Xtron, TIDC exports to over 50 countries worldwide. TII has entered into a joint venture with Borg Warner Morse TEC, USA for production of timing and silent chains. It has entered into a technology agreement with Tsubakimoto chains company, Japan, for engineering class chains. Some of TI Diamond chain’s popular brands are Diamond and Xtron.

UNITS TI CYCLES OF INDIA TUBE PRODUCTS OF INDIA TI METAL FORMING OF INDIA TIDC INDIA

TII- Business portfolio Business Cycle

% Turn over 41%

Engineering

56%

Metal Forming

3%

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PRODUCT PROFILE- “TI CYCLE SOF INDIA” TUBE INVESTMENTS OF INDIA is one of the largest integrated cycle manufactures in Asia, Manufactures high quality bicycles for both domestic and international market. TI CYCLES OF INDIA manufactures and markets the Hercules, BSA and Phillips brands. HERCULES  Hercules MTB  Hercules Thriller  Gear Ezy Ultra  Hercules Ultima  Hercules Captain Shakthi  Hercules Bravo  Hercules Tornado  Hercules Axn  Hercules Glider  Hercules Top Grand Champion  Hercules Explorer  Hercules Captain Kidz  Hercules Ultima Dx  Hercules Ultima Ex  Hercules Windpacer  Hercules Hurricance  Hercules Spitfire

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BSA •

BSA Champ Plus



BSA Lady Bird sport



BSA Lady Bird



BSA Dinosour



BSA Dash Dx



BSA Comet



BSA Champ-H-Plus



BSA Aqua Zing



BSA Aqua Marine



BSA Rocket



BSA Diana



BSA I-Bike



BSA Mach



BSA New Mach



BSA Spice-Ic



BSA Foldman



BSA City Axt



BSA Photon



BSA SLR 2000



BSA Delite



BSA Supreme

Health Segment • BSA Trim Gym • BSA Trim Gym Jogger • BSA Trim Gym Step

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HERCULES E3 Color: Orange/Cool Grey Price: 12,202/Get there faster with the Hercules e3 kit. A battery operated motor that can be fitted on any standards bicycle, it assists you when you need to pedal for long distances.So you can cover more distance with less effort. In order to make biking a viable commuting option, two months ago BSA launched Hercules E3, the motorised bicycle.A chargeable battery makes the old-fashioned bike more efficient, require less energy to ride. With a three-hour charging, the bike can be used to travel a distance of 30 km. These cycles can be used in rural areas where cycles are still the mode of transport

Features and Benefits: •

It can be fitted on any Standards bicycle, including the existing one on road.



The cycle can also be ridden normally when it’s not on the power assist mode.



It comes with a detachable battery that can be taken inside the house for charging.



Its thumb throttle is easy to operate and less strain on the hands.



Has a top speed of 24kmph and runs 30km on a single charge.



Has a running cost of less than 10paise / km.

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PARTS

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REVIEW OF LITERATURE Market Potential Analysis Market potential analysis is a primary analytic service performed by Mapping Analytics. We have the people, experience, tools, and data required to perform sophisticated and accurate market sizing. Market potential has been defined as the “the maximum demand response possible for a given group of customers within a well defined geographic area for a given product or service over a specified period of time under well defined competitive and environmental conditions. First, market potential is the maximum demand response under certain assumptions. It denotes a meaningful boundary condition on ultimate demand. Another condition on which the concept of market potential depends is a set of relevant consumers of the product or service. It is not merely the present consumer who is to be included but also the potential consumer as maximum possible demand is to be achieved. Market potential will vary depending on which particular group of consumers is of interest. Further the geographic area for which market potential is to be determined should be well defined. It should be divided into mutually exclusive subsets of consumers so that the management can assign a sales force and supervise and control the activities in different territories without much difficulty. Another relevant aspect in understanding the concept of market potential is to clearly know the product or service for which market potential is to be estimated. Especially in those cases where the product in question can be substituted by another, it is desirable to have market potential for the product class rather than that particular product.

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The most difficult estimate to make is that of the total potential available to the whole market, including all segments covered by all competitive brands. It is often achieved by determining the “maximum potential individual usage”, and extrapolating this by the maximum number of potential consumers. This is inevitably a judgment rather than a scientific extrapolation, but some of the macro forecasting techniques may assist in making the estimate more soundly based. The maximum number of consumers available will usually be determined by market research, but it may sometimes be calculated from demographic data or government statistics. Ultimately there will, of course, be limitations on the number of consumers. For guidance one can look to the numbers using similar products. Alternatively, one can look to what has happened in other countries. It is often suggested that Europe follows patterns set in the USA, but after a time lag of a decade or so. The increased affluence of all the major western economies means that such a lag can now be much shorter. A market potential analysis from Mapping Analytics may include: •

A customer profile to understand where to find more like them.



Market penetration and market share reports showing performance in existing markets and expected performance in new markets.



Market ranking reports allowing you to prioritize resource deployment into new markets.



A geographic view of market opportunity on detailed maps.

Benefits of Market Potential Analysis •

Understand market potential for a single store, network of stores or a new market



Deploy resources effectively by ranking markets in priority order.



Forecast total opportunity in terms of number of customers and revenue potential.



Estimate your market share.

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RESEARCH METHODOLOGY Business research is a systematic inquiry that provides information to guide business decisions and aimed to solve managerial problems. Business research is of recent origin and is largely supported by business organizations that hope to achieve competitive advantages. Research methodology is a way to systematically solve the research problems. It may be understood as a science of studying how research is done scientifically. It includes the overall research design, the sampling procedure, data collection method and analysis procedure.

3.1 RESEARCH DESIGN Research design stands for advance planning of the methods to be adopted for collecting the relevant data and the techniques to be used in analysis, keeping in view the objectives of the research and availability of time. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of this research is description of state of affairs as it exits at present. In this survey the design used is descriptive in nature. The information is collected from the individuals and analyzed with the help of different statistical tools, for describing the relationship between various types of variables, pertaining to different investment options. Moreover Cross table Analysis has been done for processing the data and information is derived to meet the objectives of the study.

3.2

DATA

3.2.1 Nature of Data Under the study Primary data was collected by using Questionnaire.

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3.2.2

Source of Data

The Primary data was collected from the individuals residing in Chennai City, with the help of the questionnaire, which was prepared after getting inputs from the experts and executives in Way 2 wealth .Secondary data are sourced from Magazines, Books, Pamphlets, Periodical Surveys, and Websites etc.

3.3

METHOD OF DATA COLLECTION Structured Questionnaire method is used as an instrument for collecting

information from the individuals. A Pilot study was conducted based on which a few changes were made in the Questionnaire. 3.4

SAMPLING Since the populations of consumers are large in number, researcher was

unable to collect information from all individuals due to limitation of time. So part of the population is taken for analyzing and generating the findings, which may be applicable for total market.

3.4.1 Sampling Unit The number of items selected from the population constitutes the sample size.

3.4.2 Sample Size The sample size for the study is 200

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3.4.3 Sampling Method Convenient non-probability sampling is applied. Non-probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. In this type of sampling, items for the sample are selected deliberately by the researcher; his or her choice concerning the items remains supreme.

3.5

TOOLS USED The data has been mainly analyzed by using the following methods and tests.

Cross Tabulation and Percentage method supplemented by appropriate charts. 1.

Percentage Analysis

2.

Chi – Square Test

3.

Mean

4.

Weighted average

5.

Correlation

STATISTICAL TOOLS  PERCENTAGE ANALYSIS Percentage analysis is used to describe a relationship. It is used extensively to convert the data in terms of percentage to aid the interpretation quantitatively. Percentage = No. of respondents in category / Total no.of respondents*100

 Mean Arithmetic average is also called mean. It is obtained by dividing total values of various items by their number. 23

 CHI SQUARE TEST Chi square tests are conducted to test whether two or more attributes are associated or not. It describes the magnitude of the discrepancy between theory and observation. Chi square can only be used if the experimental data or sample observation are independent of each other. The data collected must be drawn at random from the universe or population. We use the following formula for calculating the value of chisquare. y2 = ( Oi – Ei) 2 / Ei Where Oi = observed frequency Ei = expected or theoretical frequency The degree of freedom is calculated from the frequency table called contingency table by using the formula d.f = (c-1)(r-1) Where, c = No. of cell frequencies in columns; r = No. of cell frequencies in rows  WEIGHTED AVERAGE ANALYSIS An average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average. Weightings are the equivalent of having that many like items with the same value involved in the average.

Weighted Average =

XiWi Wi

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 CORRELATION ANALYSIS Correlation or co-relation refers to the departure of two variables from independence , although correlation does not imply causation. In this broad sense there are several coefficient, measuring the degree of correlation , adapted to the nature of

the data. The correlation is defined only if both of the standard

deviations are finite and both of them are nonzero. It is a corollary of the cauchy-Schwarz inequality that the correlation cannot exceed 1 in absolute value. The correlation is 1 in the case of an increasing linear relationship, -1 in the case of a decreasing linear relationship, and some value in between in all other cases, indicating the degree of linear dependence between the variables. The coefficient is to either -1 or 1 , the stronger the correlation between the variables.

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OBJECTIVES Primary objective

 To know about market potential of the product Hercules E3 cycle.

Secondary objectives

 To bring awareness about the product Hercules E3 cycle.  To identify the consumer preference.  To understand whether the new concept is welcomed by people or not.

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SCOPE OF THE STUDY  To understand the consumer perception, buying pattern and behavior.  To identify the potential market growth and various marketing strategies to be adopted.  To know the real opportunities that is present.  The research findings have interdisciplinary use.  The research findings will fill the gap in the existing theory and will create new paradigms useful to both academics and the marketers.

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LIMITATIONS OF THE STUDY  The research study is based only on the data collected only from few areas in Chennai.  Definite population is unconfined since the market is large.  Time is the major limiting factor as the available time for survey was only three months.  Many customers are reluctant in answering the questionnaire as they are not aware of the product.  The information given by the respondents are tentative which may change from time to time.

Despite the above limitations the researcher has made the study as objective and meaningful as possible.

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GENDER CLASSIFICATION TABLE 4.1

Particulars

No of respondents

Percentage of respondents

Male

130

65

Female

70

35

Inference

 Majority of the respondents 65percent of them are male.  Only 35percent of the respondents are female.

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GENDER CLASSIFICATION CHART- 4.1

Female 35%

Male 65%

Male Female

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AGE OF THE RESPONDENTS Table-4.2

Particulars

No of Respondents

Percentage of Respondents

15-20

80

40

20-25

48

24

25-30

50

25

>30

22

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Inference  It is found that majority of the respondents belong to the category of 15-20 years.  24 percent belong to the category 20-25.  25 percent belong to the category 25-30.  Only 11 percent belongs to the category above 30.

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AGE OF THE RESPONDENTS Chart -4.2

80 80 70 60

48

50

50

40 22

30 20 10 0

15-20

20-25

25-30

>30

15-20 20-25 25-30 >30

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INCOME OF THE RESPONDENTS Table- 4.3 Particulars

No of respondents

Percentage of respondents

<10000

54

27

10000-20000

69

34.5

20000-35000

48

24

>35000

29

14.5

Inference  It is found that 27 percent of people belong to the category of income level which is less than Rs10,000/ Majority of the respondents that is 34.5 percent comes in category 10000-20000.  24 percent belongs to the category level 2000-35000.  Only 14.5 percent belong to the category level which is greater then 35000.

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INCOME OF THE RESPONDENTS Chart - 4.3

15% 27%

24% <10000 10000-20000

34%

20000-35000 >35000

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OCCUPATION OF THE RESPONDENTS Table-4.4

Particulars

No of Respondents

Percentage of Respondents

Employed

30

15

Professional

16

8

Postman

24

12

Student

128

64

Others

2

1

Inference  It is found that majority that is 64 percent of respondents belongs to students.  15 percent of the respondents were employed.  8 percent were professional people.  12 percent of respondents belong to post man.  Only one percent comes in other category.

35

OCCUPATION OF THE RESPONDENTS Chart -4.4

1%

15%

8%

12% 64%

Empolyed Professional Postman Student Others

36

FACTORS THAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY HEAR ABOUT TI CYCLES Table-4.5 Factors

No of respondents

Percentage of respondents

Quality

92

46

Price

40

20

Reliability

60

30

Others

8

4

Inference  Quality is the first thing which attracts many customers towards ti cycles. Majority of the people say quality is the first thing which comes to their mind.  20 percent of people consider price.  30 percent of people say that reliability is the thing which comes to their minds.  Only 4 percent of people say other things like fashion, color and comfort comes to their mind.

37

FACTORS THAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY HEAR ABOUT TI CYCLES Chart -4.5

100 80 Others Reliability Price Quality

60 40

92 60

20 0

40 8

38

PURPOSE OF USING THE BICYCLE Table – 4.6 Purpose

No of respondents

Percentage of respondents

Education

128

64

Postal services

24

12

Household purpose

32

16

Others

16

8

Inference  64 percent of people use bicycle only for education purpose. Majority of the persons who are using bicycle are students.  12 percent of people use it for postal services.  16 percent of people use it for household purposes.  Other people use it for different purposes like fitness, delivering newspaper and milk etc.

39

PURPOSE OF USING THE BICYCLE Chart – 4.6

140 128 120 Education

100

Postal services

80

Household services Others

60 40 20

32 24

16

0

40

FACTORS INFLUENCING PURCHASE DECISION Table-4.7 Factors

No of respondents

Percentage of respondents

Quality

56

28

Price

96

48

Brand name

28

14

Features

20

10

Inference  28 percent of people consider quality as a main thing before making a purchase decision.  Majority that is 48 percent of people prefer price as a main factor.  14 percent of people consider brand name.  10 percent of people consider features they want the look to be attractive.

41

FACTORS INFLUENCING PURCHASE DECISION Chart -4.7

10% 28% 14%

Quality Price Brand name Features

48%

42

AWARENESS ABOUT E3 CYCLES Table-4.8

Factors

No of respondents

Percentage of respondents

Before my explanation

60

30

Only after my explanation

140

70

Inference  The awareness level is very low for the product E3 cycles. Because nearly 70 percent of the people were not aware about the product only after my explanation they came to know about the product. To reach the market the company has to bring lot of awareness about the product to the people.

43

AWARENESS ABOUT E3 CYCLES Chart -4.8

30%

Before explanation After explanation

70%

44

INFLUENCE OF PERCENTAGE OF WARRANTY TO BUY THE CYCLE Table-4.9

Factors

No of respondents

Percentage of respondents

25%

12

6

25% to 50%

40

20

50% to 75%

68

34

75% to 100%

80

40

Inference  40 percent of people consider warranty is an important factor for purchasing a cycle.  34 percent consider warranty between the range 50% to 75%.  20 percent of people consider warranty less than 50% but more than 25%.  Only 6% do not worry about the warranty. They give less importance to it.

45

INFLUENCE OF PERCENTAGE OF WARRANTY TO BUY THE CYCLE CHART -4.9

6% 20% 40%

34% 25% 25% to 50% 50% to 75% 75% to 100%

46

PREFERENCE OF RESPONDENTS TO HAVE A DEMO BEFORE MAKING A PURCHASE Table-4.10

Particulars

No of respondents

Percentage of respondents

Yes

168

84

No

32

16

Inference  Majority of the people believe that they need to have a demo before making their purchase. They want to check and see whether the new technology is working properly or not.

47

PREFERENCE OF RESPONDENTS TO HAVE A DEMO BEFORE MAKING A PURCHASE CHART -4.10

180

Yes

160 140 120 100

Yes

80

No

60 40

No

20 0

48

REACTION TO THE NEW CONCEPT TABLE -4.11 Particulars

No of respondents

Percentage of respondents

Poor

28

14

Good

70

35

Very good

60

30

Excellent

42

21

Inference

 It is found that majority of the respondents 30 percent consider the concept to be a good one.  30 percent feel that it is really too good.  21 percent feel that it is really an excellent one they consider this as a good advancement of technology.  Only 14 percent feel that the concept is a poor one they are just satisfied with the old model itself.

49

REACTION TO THE NEW CONCEPT CHART -4.11

80 70

70

60

60 50

42 40 30

28

20 10 0

POOR GOOD VERY GOOD EXCELLENT

50

SATISFACTION LEVEL TOWARDS PRICE TABLE -4.12 Particulars

No of respondents

Percentage of respondents

Poor

78

38

Average

63

32

Fairly good

37

19

Very good

22

11

Inference  It is found that majority of the respondents are not satisfied with the price 38 percent consider it as a poor one.  32 percent say price is some what average one.  19 percent consider the price is good for the quality of the product.  Only 11 percent say the price is a very good one they are satisfied with it.

51

SATISFACTION LEVEL TOWARDS PRICE CHART -4.12

11%

38%

19%

32%

Poor Average Fairly good Very good

52

FACTORS INFLUENCING WHILE DECIDING TO BUY A PRODUCT TABLE- 4.13 Particulars

No of respondents

Percentage of respondents

Sales representative

28

14

Offers and discounts

60

30

Advertising

72

36

Trade shows

20

10

Other

20

10

Inference  14 percent of people feel that apart from the product sales representative play a vital role.  30 percent of people want offers and discounts other than the product itself.  36 percent of people feel that advertisement plays a vital role.  10 percent of people feel that trade shows are important other than the product itself.  And remaining ten percent of people consider other facts.

53

FACTORS INFLUENCING WHILE DECIDING TO BUY A PRODUCT CHART - 4.13

10%

14%

Sales representative Offers and discounts

10%

Advertising 30%

Tradeshows Others

36%

54

LEVEL OF PREFERENCE TO BUY THE PRODUCT Table -4.14 Particulars

No of respondents

Percentage of respondents

Very high

6

3

High

30

15

Normal

82

41

Low

54

27

Very low

28

14

Inference  41percent of respondents have normal preference level towards the product.  15percent have high level of preference towards the product.  3percent have very high level of preference.  27percent of respondents have low level of preference.  14percent of respondents have very low level of preference.

55

LEVEL OF PREFERENCE TO BUY THE PRODUCT Chart -4.14

90

82

80 70 54

60 50 40

30

30 20 10

28

Very high High Normal Low Very low

6

0

56

CHI SQUARE TEST RELATIONSHIP BETWEEN DISTANCE TRAVELED AND PREFERENCE FOR CYCLES Null Hypothesis Ho – There is no significant relationship between Distance traveled and preference Alternative Hypothesis H1 - There is significant relationship between Distance traveled and preference CHI TEST TABLE Distance Traveled

Very High

<5 km 5 -10km 10 -15 km 15-20 km >20 km Total

High

1 3 1 1 0 6

Normal Low 8 12 6 3 1 30

27 23 18 11 3 82

Very Low 12 10 12 14 6 54

Total 4 4 5 7 8 28

52 52 42 36 18 200

Calculated value (CV) = ∑ (O-E)* (O-E) Ei = 35.54 Level of significance = 5% Degrees of Freedom = (R-1)* (C-1) = (5-1)*(5-1) = 4*4 = 16 AT 16DOF and 5% level of significance, the table value is = 26.296

57

OBSERVED VALUE (Oi)

EXPECTED (Oi – VALUE Ei) (Ei)

(Oi-Ei) *(OiEi)/Ei

1

1.56

-0.56

0.20

3

1.56

1.44

1.33

1

1.26

-0.26

0.05

1

1.08

-0.08

0.01

0 8 12 6 0 1 27 23 18 11 3 12 10 12 14 6 4 4 5 7 8

0.54 7.8 7.8 6.3 5.4 2.7 21.32 21.32 17.22 14.76 7.38 14.04 14.04 11.34 9.72 4.86 7.28 7.28 5.88 5.04 2.52

-0.54 0.2 4.2 -0.3 -5.4 -1.7 5.68 1.68 0.78 -3.76 -4.38 -2.04 -4.04 0.66 4.28 1.14 -3.28 -3.28 -0.88 1.96 5.48 TOTAL

0.54 0.01 2.26 0.01 5.40 1.07 1.51 0.13 0.04 0.96 2.60 0.30 1.16 0.04 1.88 0.27 1.48 1.48 0.13 0.76 11.92 35.54

Interpretation: Calculated χ2 value is greater than the table value. So Null Hypothesis is rejected. Therefore, there is significant relationship between distance traveled and preference for E3 cycles

58

CHI-SQUARE TEST TO ANALYSE THE PURCHASE DECISION Null Hypothesis Ho: Customers does not consider the following factors while going in for the purchase of the product Alternative Hypothesis Ha : Customers consider the following factors while going in for the purchase of the product. Table 4. : FEATURES

NO.OF

E

(O-E)

(O-E)²

RESPONDENTS Quality

56

50

6

36

Price

96

50

46

2116

Brand Name

28

50

-22

484

Features

20

50

-30

900

Total

200

200

0

3536

(O-E)²

= 17.98

E

59

γ2 = 17.98 Degree of freedom = ( n-1 ) 5-1 = 4 The Table Value for 4 degree of freedom at 5% level of significance is 9.448 Calculated value > table value i.e. 17.98 > 9.448 Therefore, we reject the null hypothesis. INFERENCE. The degree of freedom for 4 is 9.448; the calculated value is 17.98, since the calculated value is greater than the table value. The null hypothesis is rejected. Hence the customers consider the following factors while going in for the purchase of the product

60

TO ESTIMATE THE RELATIONSHIP BETWEEN INCOME AND SATISFACTION LEVEL FOR PRICE OF THE PRODUCT USING CORRELATION ANALYSIS TABLE 4.40 – ESTIMATING THE RELATIONSHIP BETWEEN INCOME AND SATISFACTION LEVEL FOR PRICE OF THE PRODUCT USING CORRELATION ANALYSIS PRICE NO OF INCOME LEVEL NO OF RESPONDENTS RESPONDENTS Poor value 78 <10000 54 Average value 63 10000-20000 69 Fairly good value 37 20000-35000 48 Very good value 22 >35000 29 Total 200 200 TABLE 4.41 – CORRELATION ANALYSIS BETWEEN INCOME AND PRICE x

x-

( x - )2

y

y-

( y - )2

( x-) ( y-)

54 69 48 29 200

4 19 -2 -21 0

16 361 4 441 822

78 63 37 22 200

28 13 -13 -28 0

784 169 169 784 1906

112 247 26 588 973

= 200/4 = 50

= 200/4 = 50

r = 975/√822 * 1906 = 975/1251 = 0.77 Interpretation There exists a strong positive relation between Income and thought about price

61

WEIGHTED AVERAGE FOR RANKING THE SERVICE OREINTED ATTRIBUTES TABLE 4 - TO ESTIMATE THE WEIGHTED AVERAGE OF E3 CYCLEORIENTED ATTRIBUTES Highly Satisfied Neutral Dis-satisfied Highly dissatisfied satisfied Rank 1 2 3 4 5 A good 8 50 99 36 7 value Well built 11 83 76 26 4 A brand I can trust Price High quality

13

82

87

16

2

8 34

82 63

78 78

18 15

14 10

36 2 72

7 1 7

26 2 52

4 1 4

TABLE – A good value VALUE WEIGHT TOTAL

8 5 40

50 4 200

99 3 297

W.A.M= 616/200 = 3.08 TABLE – WELL BUILT VALUE WEIGHTS TOTAL

11 5 55

83 4 332

76 3 228

W.A.M = 671/200 = 3.355

62

A BRAND I CAN TRUST VALUE WEIGHTS TOTAL

13 5 65

82 4 328

87 3 261

16 2 32

2 1 2

TABLE – PRICE 82 78 4 3 328 234

18 2 36

14 1 14

14 2 28

9 1 9

W.A.M = 658/200 = 3.29

VALUE WEIGHTS TOTAL

8 5 40

W.A.M = 652/200 = 3.26 TABLE – High quality VALUE WEIGHTS TOTAL

26 5 130

82 4 328

69 3 207

W.A.M = 702/200 = 3.51 FACTORS A good value Well built A brand I can trust Price High quality

WEIGHTED AVERAGE 3.08 3.35 3.29 3.26 3.51

RANK 5 2 3 4 1

Inference The table shows that the factors of the E3 cycle, based on high quality(78) respondents are neither satisfied nor dissatisfied. 83 of the respondents say the product is well build and satisfied. 87 of the respondents say their have neutral level of trust towards brand. 83 respondents wear satisfied with the price of the cycle, 99 of the respondents say it has good value.

63

FINDINGS

 It is found that majority of the people are having idea about the Ti cycles. So as a brand it has a good reach among the public.  It is found that majority of the respondents around 64% are using the cycle for education purpose, so mainly cycle users are youngsters.  Majority of the people that is 46%of the people say that quality is the first thing which comes to their mind when they hear of the company name Ti cycles.  Majority of the people who are using the cycle are men.  Regarding purchase decision it is mainly based on the price. Majority of the people 48% consider price as the first thing before taking any purchase decision. Next to price only other things like Quality, Brand name and Features come.  Only the person who are using the cycle for postal services travel a lot when compared to others.  The awareness about the product Hercules E3 cycle is very low. Many people do not have any idea about the cycle. Only 30%of the people were having knowledge about the cycle before my explanation.  Warranty plays major roles nearly 40% percent of people believe that they will go for cycle only when they have cent percent warranty for that.  The most powerful influencers are the youngsters as the majority 64% are using the cycle.

64

 The concept of electronic cycle is welcomed by many people it is a good sign for the product.  Demo plays a major role in this product. As it is a new product many want to have a trial of it. Nearly 84% of people feel that they should have a demo before making the purchase.  Many feel that offers and discounts are very essential. Nearly 30% of people feel that they need offer and discount in addition to the product.  Advertising plays a vital role. Many were asking the same question like we have not seen the product in advertisement itself. 36% people say that their purchase decision is based on advertisement also.  Price is a major barrier many feel that it is priced heavily.  The awareness towards company is significant but the awareness towards the product is not significant.  Respondents were very happy with the quality of the product but they feel that price is little high.  Respondents also feel that there is no advertisement which is a main reason for less awareness towards the product.  There is a significant relationship between the distance traveled and preference towards cycle .Hence they should target the people who travel a lot.  People rate this cycle as a high quality one so it is a good sign for the product.

65

 There is also a strong relationship between the income and thought about the preference for the product.

66

SUGGESTIONS

 Since the concept is liked by many people they have to focus mainly on that they should try to reach the market with the help of that.  The majority of the consumers constitute the youngsters so targeting them and fulfilling their needs with best quality will have the profitable results.  Since the awareness level is very low steps have to be taken to bring awareness. They should bring more advertisements, more trade shows etc.  It is a new concept hence the company should give a demo about the product so that many will have an idea about the cycle. It is also one of the sources to bring awareness.  Pricing plays a major role, the main problem which is faced by the product is its price hence they have to try to make some alterations in it so that they can reach the market easily.  Many introductory offers and discounts must be given to capture the market for this product. Being a new market offers and discounts will help to increase the sales and it will help in capturing the market potential.  They should try to bring down the cost of the product so that they can attract many customers .Mainly steel is used as a raw material for production of cycles which is a very costly one they can take steps to replace it with plastic so that the cost will come down.

67

CONCLUSION

I believe that it is little difficult for the product E3 to capture the market. But it doesn’t mean that it is not having market potential definitely there is a good potential for the product as the consumers are waiting eagerly for the technology and innovative things. They have to grab the market with different marketing strategies at low cost. The innovative product is really a good one they should take proper step to make it a successful one. Finally I would like to conclude by thanking everyone who made me to explore to such a fantastic market research.

68

BIBLIOGRAPHY

BOOKS REFERED  DR. C. R. KOTHARI, “RESEARCH METHODOLOGY”, New age International Publishers, Second revised edition 2006.  DR. G. C. BERI, “MARKETING RESEARCH”, First edition.

COMPANY DETAILS  TUBE INVESTMENTS OF CYCLE LIMITED, CHENNAI.

WEBSITE  www.marketresearch.com  www.marketfinder.com  www.blonnet.com

69

QUESTIONNAIRE ON MARKET POTENTIAL FOR HERCULES E3 CYCLE. 1) Name: 2) Age: a) 15-20

b) 20-25 c) 25-30 d) Above 30

3) Gender: a) Male

b) Female

4) What is your monthly salary range? a) Below 10,000

b) 10,000-20,000 c) 20,000-35,000

d) Above 35,000

5) What is your Occupation? a) Employed

b) Professional

c) Post man

d) Student e) Others

6. What comes to your mind when you hear of TI cycles? a. Quality b. Price c. Reliability d. Others 7. For what purpose you are using the bicycle? a. Education b. Postal services c. Household purpose d. others 8. How much distance will you travel per day? a. < 5 km b.5-10 km c.10-15 km d. 15-20 km e. >20 9. Mainly your purchase decision is based on? a. Quality

b. Price

c. Brand name d. Features

70

10. Are you aware of E3 cycles? a .Before my explanation

b .Only after my explanation

11. Please tell us how you would rate E3 on the following attributes. 1

2

3

4

5

A good value Expensive A brand I can trust Well built High quality 12. What is your reaction to the new concept electronic cycle? a. Poor b. Good c. Very Good d. Excellent 13. What you think about the price of the cycle? a. Poor value b. Average value c. Fairly good value d. Very good value 14. What percentage does warranty influence you to buy the cycle? a.25%

b.25% to 50%

c. 50% to 75% d. 75% to 100%

15. Whether you like to have a demo about the cycle before making a purchase? a. Yes

b.No

71

16. Other than the product itself, which of the following would most influence you when deciding to buy a product? a. Sales representative b. Offers and discounts c. Advertising d. Trade shows e. Other 17. Your level of preference to buy the product a. Very high

b. High c. Normal d. Low e. Very Low

72

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