PROJECT REPORT

ON
MARKET ANALYSIS OF ATLAS CYCLES
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE
DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION
2011-14
UNDER THE GUIDANCE OF:
Rajiv Jain

SUBMITTED BY:
Abhishek Sukhija

06561101711

Maharaja Agrasen Institute of Management Studies

Affiliated to Guru Gobind Singh Indraprastha University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

CERTIFICATE OF APPROVAL

This is to certify that the project titled MARKET ANALYSIS OF ATLAS CYCLES is an
academic work done by Abhishek Sukhija submitted in the partial fulfilment of the
requirement for the award of the degree of Bachelor Of Business Administration from Maharaja
Agarsen Institute of Management Studies, Delhi, under my guidance & direction. To the best of
my knowledge and belief the data & information presented by him/her in the project has not been
submitted earlier.

Mr. RAJIV JAIN

ASSISTANT PROFESSOR

STUDENT DECLARATION

This is to certify that I have completed the Project titled MARKET ANALYSIS OF ATLAS
CYCLES under the guidance of Mr. Rajiv Jain in partial fulfilment of the requirement for the
award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of
Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier
elsewhere.

ABHISHEK SUKHIJA

ACKNOWLEDGEMENT

Apart from the efforts of me, the success of any project depends largely on the encouragement
and guidelines of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project.
A special note of Thank goes to Dr. .N.K Kakkar for his guidance while undergoing this project.
I would like to show my greatest appreciation to Mr. Rajiv Jain. thank you wont be enough for
his tremendous support and help. I feel motivated and encouraged every time I attend his
meeting. Without his encouragement and guidance this project would not have been materialized.
The guidance and support received from all the members who contributed to this project, was
vital for the success of the project. I am grateful for their constant support and help.

ABHISHEK SUKHIJA

EXECUTIVE SUMMARY

The project entitled MARKET ANALYSIS OF ATLAS CYCLES includes profile of atlas
cycles, its market share in bicycle industry , other competitors in bicyle industry. All the data and
information about the company is collected from secondary sources. ATLAS CYCLES was set
up long back in 1951 since then it has been a leading manufacturer & exporter of bicycles. This
study throws light on the analysis of ATLAS CYCLES with its competitors in terms of
marketing strategies and advertising campaigns undertaken by these companies. During the study
I observed some problems that were a hindrance for ATLAS CYCLES. ATLAS CYCLES reach
in the Rural Market is weak because of its distribution channel. The Bicycle Industry in India
had its genesis in 1939. long after the establishment of the industry in the Western countries
when Hind Cycles Ltd. (a Birla company) set up their Bombay plant. Another Unit which was set
up at about the same time was Hindustan Bicycle Corporation at Patna. Both of these units
manufactured most of the components for bicycles, barring few items like tyres & tubes, free
wheels, chains and balls.
Today, the company exports its products across five continents and 85 countries of varied
destinations, geographical, social and climatic conditions, putting formidable challenge to
leading bicycles manufacturers in the world.

More than 90 per cent of the bicycle production in India comes from four bicycle companies.
Major players with their per cent share in this sector are Hero Cycles 35%, Atlas Cycles 24%, TI
Cycles 18% and Avon 15%. Hero Cycles has grown to become the worlds largest bicycle maker
followed by Atlas Cycles.
Domestic success led to international acclaim. Today, Atlas Cycles as well as components are
exported to over 35 countries, among them advanced countries like Italy, Holland, U,K.. Japan
and Australia.

TABLE OF CONTENTS

STUDENTS DECLARATION

CERTIFICATE FROM THE GUIDE

ii

ACKNOWLEDGEMENTS

iii

EXECUTIVE SUMMARY

iv

CHAPTER 1 -Introduction
1.1 Purpose of study
1.2 Research Objectives
1.3 Research Methodology Of the Study
1.3.1 Research Method
1.3.2 Data Source
1.3.3 Limitations
1.3.4 Literature Review

CHAPTER 2 - About the organisation/Company profile

11

CHAPTER 3 - Findings & analysis

27

CHAPTER 4 - Suggestions

36

CHAPTER 5 - Conclusion & Limitation

39

Bibliography

CHAPTER 1- INTRODUCTION

42

1.1 Purpose of study

The main purpose of this study is to study the market analysis of atlas cycles in cycle industry

1.2

Research objective of the study:

Primary Objective:
1. To find out the market share of the Atlas Cycles.
2. To explore its product range and compare atlas cycle with its competitors.
Secondary Objective:
To study the factors that influences the Customer Buying Behaviour.

1.3 RESEARCH METHODOLOGY OF THE STUDY

1.3.1 RESEARCH METHOD

Research methodology is a way to systematically solve the research problem. Research

methodology constitutes of research methods, selection criterion of research methods, used in
context of research study and explanation of using of a particular method or technique so that
research results are capable of being evaluated either by researcher himself or by others. Why a
research study has been undertaken, how the research problem has been formulated, why data
have been collected and what particular technique of analyzing data has been used and a best of
similar other question are usually answered when we talk of Research methodology concerning a
research problem or study. The main aim of research is to find out the truth which is hidden and
which has not been discovered as yet.

1.3.2 DATA SOURCE

The data can be collected from two sources, i.e. Primary and Secondary.

PRIMARY DATA:
Primary research entails the use of immediate data in determining the survival of the market. The
popular ways to collect primary data consist of surveys, interviews and focus groups, which
shows that direct relationship between potential customers and the companies.

SECONDARY DATA:
Where as secondary research is a means to reprocess and reuse collected information as an
indication for betterments of the service or product. Both primary and secondary data are useful
for businesses but both may differ from each other in various aspects.
I have collected entire data of this project from SECONDARY SOURCES like websites, books,
newspapers and magazines.

1.3.3 LIMITATIONS

1. Due to wide spread information of the data, the scope of project becomes very wide.
2. All the matter has been collected through secondary sources; hence, the errors might have
crept in.
3. Given the time constraints, all the information could not be gathered.

1.3.4 LITERATURE REVIEW

Marketing is "the activity set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large
For business to consumer marketing it is "the process by which companies create value for
customers and build strong customer relationships, in order to capture value from customers in
return". For business to business marketing it is creating value, solutions, and relationships either
short term or long term with a company or brand. It generates the strategy that underlies sales
techniques, business communication, and business developments. It is an integrated process

through which companies build strong customer relationships and create value for their
customers and for themselves.
Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the
customer as the focus of its activities, marketing management is one of the major components
of business management. Marketing evolved to meet the stasis in developing new markets
caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing
strategies requires businesses to shift their focus from production to the perceived needs and
wants of their customers as the means of staying profitable.
and wants of consumer satisfy these more effectively than competitors.

Promotion

Promotion is the marketing term used to describe all marketing communications activities and
includes personal selling, sales promotion, public relations, direct marketing, trade fairs and
exhibitions, advertising and sponsorship. Promotion needs to be precisely coordinated and
integrated into the businesses global communications message, and this is called Integrated
Marketing Communications (IMC). IMC integrates the message through the available channels
to deliver a consistent and clear message about your companys brands, products and services.
Any movement away from the single message confuses the consumer and undermines the brand.
Promotion is the element of the marketing mix which is entirely responsible for communicating
the marketing proposition. Marketers work hard to create a unique marketing proposition for
their product or service. McDonald's is about community, food and enjoyment. Audi is about the
driver experience and technology. Fundamentally, however there are three basic objectives of
promotion. These are:
1. To present information to consumers as well as others.
2. To increase demand.
3. To differentiate a product.
There are different ways to promote a product in different areas of media. Promoters use internet
advertisement, special events, endorsements, and newspapers to advertise their product. Many
times with the purchase of a product there is an incentive like discounts, free items, or a contest.
This is to increase the sales of a given product. The term "promotion" is usually an "in"
expression used internally by the marketing company, but not normally to the public or the
market - phrases like "special offer" are more common.
Promotion is basically a communication process. Without proper flow of information & effective
communication from the producer to the consumer, no sale is possible today. The various
promotion mix elements designed for this purpose are also referred as Communication Mix.

Promotional Mix:

Promotional mix refers to the communication of various promotional tools used by a business
firm to create, maintain & increase demand. It involves an appropriate integration of advertising,
sales promotion, public relations, direct marketing.
The 4 Ps of marketing are product, price, place and promotion. All four of these elements
combine to make a successful marketing strategy. Promotion looks to communicate the
companys message across to the consumer. The four main tools of promotion are advertising,
sales promotion, public relation and direct marketing.

The elements of the promotions mix are:

Personal Selling.

Sales Promotion.

Public Relations.

Direct Mail.

Trade Fairs and Exhibitions.

Advertising.

Sponsorship.
And also online promotions.

The elements of the promotions mix are integrated to form a coherent campaign. As with all
forms of communication, the message from the marketer follows the 'communications process' as
illustrated above. For example, a radio advert is made for a car manufacturer. The car
manufacturer (sender) pays for a specific advert with contains a message specific to a target
audience (encoding). It is transmitted during a set of commercials from a radio station
(message/medium).
The Promotions Mix.
Let us look at the individual components of the promotions mix in more detail. Remember all of
the elements are 'integrated' to form a specific communications campaign.
1. Personal Selling.
Personal Selling is an effective way to manage personal customer relationships. The sales person
acts on behalf of the organization. They tend to be well trained in the approaches and techniques
of personal selling. However sales people are very expensive and should only be used where
there is a genuine return on investment. For example salesmen are often used to sell cars or home
improvements where the margin is high.
2. Sales Promotion.
.

Sales promotions tend to be thought of as being all promotions apart from advertising, personal
selling, and public relations. For example the BOGOF promotion, or Buy One Get One Free.
Others include couponing, money-off promotions, competitions, free accessories (such as free
blades with a new razor), introductory offers (such as buy digital TV and get free installation),
and so on. Each sales promotion should be carefully costed and compared with the next best
alternative.
3. Public Relations (PR).
Public Relations is defined as 'the deliberate, planned and sustained effort to establish and
maintain mutual understanding between an organization and its publics' (Institute of Public
Relations). PR can be relatively cheap, but it is certainly not free. Successful strategies tend to be
long-term and plan for all eventualities. All airlines exploit PR; just watch what happens when
there is an incident. The pre-planned PR machine clicks in very quickly with a very effective
rehearsed plan.
4. Direct Marketing.
Direct marketing is any marketing undertaken without a distributor or intermediary. In terms of
promotion it means that the marketing company has direct communication with the customer.
For example Nintendo distributes via retailers, although you can register directly with them for
information which is often delivered by e-mail or mail.
Direct mail is very highly focussed upon targeting consumers based upon a database. As with all
marketing, the potential consumer is targeted based upon a series of attributes and similarities.
Creative agencies work with marketers to design a highly focussed communication in the form of
a mailing. The mail is sent out to the potential consumers and responses are carefully monitored.
For example, if you are marketing medical text books, you would use a database of doctors'
surgeries as the basis of your mail shot.
Similarly e-mail is a form of online direct marketing. You register, or opt in, to join a mailing list
for your favourite website. You confirm that you have opted in, and then you will receive
newsletters and e-mails based upon your favourite topics. You need to be able to unsubscribe at
any time, or opt out. Mailing lists which generate sales are like gold dust to the online marketer.
Make sure that you use a mailing list with integrity just as you would expect when you sign up.

The mailing list needs to be kept up-to-date, and often forms the basis of online Customer
Relationship Management (CRM).

5. Trade Fairs and Exhibitions.

Such approaches are very good for making new contacts and renewing old ones. Companies will
seldom sell much at such events. The purpose is to increase awareness and to encourage trial.
They offer the opportunity for companies to meet with both the trade and the consumer.
6. Advertising.
Advertising is a 'paid for' communication. It is used to develop attitudes, create awareness, and
transmit information in order to gain a response from the target market. There are many
advertising 'media' such as newspapers (local, national, free, trade), magazines and journals,
television (local, national, terrestrial, satellite) cinema, outdoor advertising (such as posters, bus
sides). There is much more about digital, online and Internet advertising further down this pages,
as well as throughout Marketing Teacher and the Marketing Teacher Blog.
7. Sponsorship.
Sponsorship is where an organization pays to be associated with a particular event, cause or
image. Companies will sponsor sports events such as the Olympics or Formula One. The
attributes of the event are then associated with the sponsoring organization.
The elements of the promotional mix are then integrated to form a unique, but coherent
campaign.

Online Promotions
Online promotions will include many of the promotions mix elements which we considered
above. For example advertising exists online with pay per click advertising which is marketed by
Google. You can sponsor are website for example. Online businesses regularly send out

newsletters which are targeted using e-mail and mailing lists, which is a form of direct
marketing.

CHAPTER -2
About the Organization / Company
Profile

2.1 ABOUT THE CYCLE INDUSTRY

Indian Industry has made significant progress and the 90s have witnessed a new era of industrial
growth. A quantum leap in industrial output has been accompanied by a new accent on modern
technology. Large investments with foreign participation in the infra structural development and
other industries, such as automobiles, petrochemicals, food processing, engineering and an
inflow of funds from non-resident Indians have continuously accelerated the pace of expansion.
The economic reforms process, now underway, attempts to move the economy from a controlled
regime to market economy leading to competitive environment. The policy also provides
incentive for expanding export oriented industries and encouraging the inflow of foreign capital.
All these developments signal optimism about the economy's potential for reaching new heights.
Bicycles & Components Industry in India is having a promising future considering the size of the

country and growing environmental hazard. The Industry, however, has been trying to keep pace
with state of the art technology. Indian companies have provided technical know-how to various
developing countries to set up Bicycle manufacturing units, and can render similar assistance to
other developing countries. Indian companies are exporting not only traditional "Roadster"
cycles to developing countries but have also started exporting new models of Bicycles with latest
design to developed countries in the world.

The Bicycle Industry in India had its genesis in 1939. long after the establishment of the industry
in the Western countries when Hind Cycles Ltd. (a Birla company) set up their Bombay plant.
Another Unit which was set up at about the same time was Hindustan Bicycle Corporation at
Patna. Both of these units manufactured most of the components for bicycles, barring few items
like tyres & tubes, free wheels, chains and balls.
In 1949, Sen Raleigh Group of India set up a plant at Asansol (WB) with know-how from the
Raleigh Group of U.K. While TI Cycles of India Ltd. set up a plant at Madras (Chennai) with
know-how from Tube Investment of U.K. The production of cycles entered the fast track after
1950 with Atlas Cycle Industries Ltd., Sonepat (1950). Hero Cycles Ltd., Ludhiana (1951). Avon
Cycles Ltd.. Ludhiana (1952) and Roadmaster Industries. Rajpura (1954) coming into existence.
Major manufacturing activities of bicycles and its components in India started, only after
independence as all parts were being imported till then. The Bicycle Industry has risen from a
mere scratch, and complete dependence on imports, to making the country self-sufficient within
a period of about ten years.
The Bicycle Industry's center of activity are mainly in and around Ludhiana, which can boast of
having over 1,500 factories making bicycles and components, providing employment to 0.25
million people and today it is a jewel in the crown of India's industrial cities. The components
and spares are manufactured strictly as per international standards such as ISO 9000, which
ensures production quality in the absolute sense of the world. Exports of Bicycle and its parts
from India during financial year 1997-98 were of US$ 109.01 million, in 1999-2000 it was US$
146.25 million and during 2001-02 it is estimated to cross US$ 205 million

STRENGTHS
The Indian bicycle industry is almost entirely self-sufficient, with more than 95% of bicycle
components supplied from domestic sources. It also obtains most of its raw materials, such as
steel tubes, from within the country.
It concentrates on producing a simple, cheap, and rather old-fashioned roadster model. The
could be seen as a deliberate attempt to satisfy the basic transportation needs of the less affluent
segment of the population. The industry is capable of producing roadster model at highly
competitive Price.
It has made minimal use of foreign technology, creating or adapting most of the technology it
employs and emphasizing labour-intensive production techniques.
Although it procures a substantial volume of its components from a large number of small
producers, final production is strongly concentrated.
More than 90% of its exports are directed towards other developing countries where the basic
transportation needs of large numbers of less affluent people are far from being satisfied.
India has been eminently successful in entering into joint venture and licensing agreements for
the production of bicycles and components in many developing countries. This breakthrough
might be attributed to the fact that India offers a technology appropriate to the needs of many
developing countries.
The domestic market is far from saturated. The replacement market alone is likely to generate
annual sales of 3 million bicycles in the near future, The leisure market is just beginning to be
tapped.
Highly skilled entrepreneurial community capable of adapting to any environment with

remarkable resilience.

Low labour cost and reasonable quality/price mix, This becomes crucial as in low end segment
buyer looking for reliable quality at affordable price, cost accounts for 80% to 90% of
competitiveness.
Concentration of industry in Ludhiana makes it possible to benefit from collective efficiency
arising out of pool of skills availability, specialized suppliers and attracting buyers besides
possibilities of joint action to undertake collective facility like customs clearance.
Large numbers of supplier at same place have been instrumental in low cost infrastructure and
jus-in time deliveries.
The small/tiny units in bicycle parts industry have mastered the art of manufacturing a
comprehensive range components which are sturdy, reliable for both OEM and replacement
market.

Industry has evolved a system of using efficient and simple technologies. The close integration
of manufacturers of degeral parts has ensured that each and every portion of the basic raw
material e.g., steel is used-waste generated in one activity becomes input for some other part.
Besides minimizing the waste, this has resulted in better price utilization.

Indian bicycle industry has achieved a certain level of product quality standard under
competitive price parameters, which makes imports of comparable Chinese, or other foreign
made products uneconomical at present. An elaborate system of dealers/sub dealers has been set
up over the years. These dealers assemble the bicycles making it possible for companies to
dispatch cycle units in CKD form and save on cost. Such an arrangement is difficult to duplicate
and given the popularity of Indian brands and lack of any well-known international brand of
bicycle in that price category acts as a significant entry barrier for imports from other low cost
countries like China. With the availability of spare parts all over the country at very reasonable

prices, it will be difficult for any foreign player to match that advantage.
Some of the units have developed technological, capabilities and quality reputation to be a
global sourcing center. For instance, Continental AG of Germany will source its tyre
requirements for global market from Metro Tyres in Ludhiana.
Many of the Cycle entrepreneurs are aware of the emerging global challenges and are in the
process of leveraging and upgrading their units by undertaking value addition, instituting cost
cutting measures and setting up websites.
The United Cycles & Parts Manufacturing Association (UCPMA) is organizing a virtual
exhibition on Internet as a part of its upgradation mission. The online exhibition will also
features a virtual buyer-seller meet.

WEAKNESSES

The Indian share in the global bicycle business is around one percent, this too is in the low cost
and low quality products. For producing higher end bicycle for global and domestic market, there
is need for overall improvement in vendor base as well as in the basic infrastructure and
resolution of logistic issues.
The Indian Industry, however, recognizes that the quality of its bicycles has to be improved in
order to increase its competitiveness in foreign markets. Upgradation of technology and quality
has to b3 built in every part, every dimension of bicycle within this context, opportunities for
foreign collaboration exists, although mainly for the production of certain types of components.
The basic mechanical skill of entrepreneurs is better suited to copy/adapt rather than develop

new technologies. There is a need to provide technological support in the form of developing and
making available superior technologies through innovative R&D efforts.
Due to lack of development of new models and use of better and lightweight material such as
Aluminium alloy, India is left behind in developed markets, which are largest importers of
bicycle and components.
There are too many tiny units, most of them nut and bolt shops operating with low-end obsolete
machinery resulting in deterioration of the component.

Except for about 150 units excluding larger units, other small/tiny units do not have computer
facilities and this digital divide can further exclude them from emerging possibilities of ecommerce

It is unlikely that SMEs will collaborate in product development since each firm will see this as
a specific competitive advantage. This explains the secretive nature of small units and lackluster
performance of various e-commerce initiatives.

OPPORTUNITIES

Enormous potential to operate in a global market, though challenges of quality, cost delivery are
equally large.

 Germany will source its tyre requirements for global market from Metro Tyres in Ludhiana.
Many of the Cycle entrepreneurs are aware or the emerging global challenges and are in the
process of leveraging and upgrading their units by undertaking value addition, instituting cost
cutting measures and setting up websites.

The United Cycle & Parts Manufacturing Association (UCPMA) is organizing a virtual
exhibition on Internet as a part of its upgradation mission. The online exhibition will also feather
a virtual buyer-seller meet.

Company Profile

INTRODUCTION TO
COMPANY

ATLAS CYCLES(HARYANA) LTD.

Atlas: A Journey of Achievements

Man had a dream .To provide quality bicycles to his countrymen at

reasonable prices. The man was Late Shri Janki Das Kapur. The dream : Atlas
Cycles Industries Ltd.
A modest beginning in an improvised shed at Sonepat. This was transformed into a 25 acre
factory complex in a record period of 12 months.

In the very first year of operation 12000 Atlas Cycles rolled out of the plant. Soon, the first
consignment of Atlas Cycles was sent overseas. Atlas has since then exported to over 35
countries.
By 1965, Atlas had emerged as India's largest Cycles manufacturer. Greater demand, higher
production and ever-expanding markets made Atlas a name to reckon with.
It was time for accolades. Atlas was presented with the FICCI Award for 'Best Industrial
Relations'. Atlas' growing importance in the international arena did not go unnoticed either.
Italy's Gold Mercury International Award was conferred on Atlas. Subsequently, At also received
the prestigious EEPC Award for export excellence for the year 198O-81 and several times later
on.
The innovations and the constant quest for perfection continued. Atlas Goldline was an instant
success all over the country. Then came the Funfleet range of sports bikes which took the market
by storm. The racer bike of international class, Atlas Pro-10, was the new breed of Cycles to roll
out of the Atlas plant.
The honour of being appointed official supplier of bicycles to the IXthAsiad, at Delhi, added
another feather to Atlas' cap. With growing demand for its products came the need for achieving
self-sufficiency in specialized bicycles components.
To meet its entire steel tube requirements the Atlas Steel Tube mill was set up at Gurgaon.
Not only was dependence on external suppliers broken but the stringent quality controls,
synonymous with Atlas, could be maintained.
The frontiers kept expanding. A second Cycles plant at Sahibabad raised the production capacity
to meet ever growing demand.
At Atlas this is a process that never seems to stop. An Atlas Cycles to suit every individual taste
and requirement.The dream of one man fifty years ago. The dream continues. To clock new
records, new innovations, new ventures.

The Philosophy behind Atlas Cycles

To face the challenges of global competition, a thrust on quality and constant innovation has
been an integral part of the philosophy of Atlas. This stress on detail has resulted in Atlas taking
a proud place amongst the well known brands in the world.
Domestic success led to international acclaim. Today, Atlas Cycles as well as components are
exported to over 35 countries, among them advanced countries like Italy, Holland, U,K.. Japan
and Australia.
Recognized as leaders of the bicycles world, it was the next step for Atlas to start exporting
expertise, lending know-how, and setting up bicycles plants in several countries.
A company inspired by grit and nurtured by the will to excel. Atlas Cycles Industries Ltd. is
today racing along in the fast track of success
Atlas Cycles R&D Unit

Atlas Cycles (Haryana) Ltd., Sonepat, has the privilege of being the only Indian complete
bicycle manufacturing unit whose in house R&D unit has been recognized by the Department of
Scientific & Industrial Research, Ministry of Science & Technology, Government of India. Our
R&D Centre is well equipped with Computer Aided Designing facility, prototype making facility
and testing facilities etc. Atlas R&D concentrates on development of new models of bikes
ranging from Kids to Mountain Bikes, City Bikes, Suspension Bikes, Sports Bikes etc.

Manufacturing &Infrastructure

Atlas: World Class Technology

Automated hi-technology machines at Atlas' continuously updated plants ensure precision

engineering, optimum application of manpower, and obtaining value of time. Accuracy is
determined to the smallest detail.
Quality Control
Dedication to quality is the unwritten code at Atlas. Every Atlas Cycles undergoes a series of
uncompromising quality control tests before taking to the roads. Individual parts of every Cycles
are checked for quality, endurance and roadworthiness.

Research & Development

Atlas spends a sizeable amount of money every year on research and development activities
aimed at improving the product design, obtaining material optimisation, improving surface
finishing methods as well as better handling and packing techniques.
Atlas is the only complete bicycles producing unit in India to have beer accorded recognition for
its in-house Research &. Development unit by the| Government of India.

Market Study

Atlas Cycles is one of the three largest bicycles manufacturer in the country. It is currently
exporting its bicycles to 85 countries across the globe. This has been possible due to its large
production capacity along with our innovative production processes. Atlas constantly upgrade its
operations and products to meet the ever changing requirements of the global market without
compromising on the quality and standards of our products.
Its endless efforts to exceed customer expectations have won it numerous awards for export
excellence as well as recognition from the Govt of Italy. It continue to forge stronger
relationships with its clients all across the globe in its endless pursuit of product excellence and
rewarding customer relations.

Domestic Sales

Atlas Cycles (Haryana) Ltd. has a wide domestic sales network in the following states.

International Sales

Atlas Cycles (Haryana) Ltd. exports Cycles to over a dozen countries.

Presently, Atlas Cycles (Gwalior Unit) is looking after the international

markets mentioned as under:

Angola

Guinea
Bissau

Australia

Guinea Mozambiq
Spain
Conakry ue

Belarus

Hong
Kong

Magnolia

South
Africa

Lithuania Tajikistan

Botswana

Hungary Namibia

Togo

Burkina
Faso

Italy

New
Zealand

Turkmenist
an

Cameroon

Ivory
Coast

Nigeria

United
Kingdom

Congo

Japan

Romania

Ukraine

Czech
Republic

Kazakhst
Russia
an

Uzbekistan

Gambia

Liberia

Senegal

Zimbabwe

Ghana

Mali

Sierra
Leone

INTERNATIONAL BUSINESS

OVERVIEW

Starting exports of Bicycles in 1958, ATLAS has come a long way in the International Market. Today,

the company exports its products across five continents and 85 countries of varied destinations,
geographical, social and climatic conditions, putting formidable challenge to leading bicycles
manufacturers in the world.
This has been possible due to our large production capacity along with our innovative production
processes. We constantly upgrade our operations and products to meet the ever-changing requirements
of the global market without compromising on the quality and standards of our products.
Its endless efforts to exceed customer expectations have won us numerous awards for export excellence
as well as recognition from the Government of Italy. We continue to forge stronger relationships with
our clients all across the globe in our endless pursuit of product excellence and rewarding customer
relations.

CHAPTER -3
Findings and Analysis

India is the largest producer of bicycles next only to china. It Produces around 1.26 crore
bicycles every year; with almost each day witnessing new designs, colours and features.
Today, the Indian bicycle manufacturing and bicycle parts industry is widely recognized
for its quality standards in the international market.

India produces approximately 10% of the world annual bicycle production, which is
estimated at 125 million units.

Exports out of India are largely to Africa and the less developed economies and
negligible to western markets.

The annual domestic demand of bicycles in India is approximately 10 million units out of
which around 2.5 million units is a government demand for the various welfare schemes

More than 90 per cent of the bicycle production in India comes from four bicycle
companies. Major players with their per cent share in this sector are Hero Cycles 35%,
Atlas Cycles 24%, TI Cycles 18% and Avon 15%. Hero Cycles has grown to become the
worlds largest bicycle maker followed by Atlas Cycles.

Major players in the domestic bicycle

industry

Hero Cycles-35%

ATLAS-24%

TI-18%

AVON-15%

MARKET SHARE
HERO

ATLAS

TI

AVON

OTHERS

8%
15%

35%

18%
24%

Products

ROADSTERS

The Roadster is the common man's daily use Cycles. Strong and reliable these bikes have been
designed with an emphasis on simplicity and sturdiness. Choose from our range of Roadsters for
both men and women.

FANCY

LADIES

Its range of Ladies Cycles are elegant and comfortable. Designed with an eye on style and easy
handling, they stand out from the ordinary. Choose from the various models available for all age
groups.

CHILDREN

Rugged, colourful and exciting, these Children Bikes have been designed keeping in mind safety,
style and individuality. These bikes stand out because of their colour and design.

JUNIOR

The Kid's Bike Introduced just after the First World War by several manufacturers, such as Mead,
Sears Roebuck, and Montgomery Ward, to revitalize the bike industry (Schwinn made its big
splash slightly later), these designs, now called "classic", featured automobile and motorcyle
elements to appeal to kids who, presumably, would rather have a motor. If ever a bike needed a
motor, this was it. These bikes evolved into the most glamorous, fabulous, ostentatious, heavy
designs ever. It is unbelievable today that 14-year-old kids could do the tricks that we did on
these 65 pound machines! They were built into the middle '50s, by which time they had taken on
design elements of jet aircraft and even rockets. By the '60s, they were becoming leaner and
simpler.

CHAPTER -4
Suggestions

In order to maintain and increase the sales in the city of Delhi/Ncrthe following
recommendations regarding Atlas Cycles; particularly regarding advertisement, distribution,
promotional policies, etc, are hereby suggested:

First and foremost Atlas should take proper action in order to improve service, because
although being on a top slot in supplies it does not get the sales in Cycles, which it should get.

Company should use brand ambassador which attracts each age segment i.e. sachin
tendulkar, virat kohli,yuvraj singh etc.

Atlas should give local advertisements apart from the advertisements given at the national
level. Local advertisement must mention the exclusive Atlas shops of the city.

Try and change the perception of the people through word of mouth about Atlas in
advertisements, because they are the best source to reach Children and families.

Though Atlas Cycles advertisements are rarely shown on television yet many people could
recall it as per the data of research. It shows that there is only need to give advertisement only to
rememorize customers. Because Atlas is very strong brand name.

Company should launch Cycles in new attractive packing to change image of Atlas Cycles
in consumers mind.

Company should introduce sales promotion schemes like free servicing, free accessories ,
contest, free gifts etc.

Youngsters and adults use Cycles and are consumed largely in this segment.

Advertisement can be done with the help of animations that attracts consumers. As we know
that Atlas Cycles is very big organization and market leader in Cycles products. It has maximum
market share in its roadster segment which is its main/core products.With the help of research,
company can find out its weak points in its product and can increase its market share through
rectify mistakes. People have believed in Atlass product and they can easily influence its sales
if effective actions are taken.

CHAPTER -5
Conclusion and Limitation

The study resulted into following conclusions :

Atlas must come up with new promotional activities so that people become aware about Atlas
Cycles various segments like ATBS/MTBS, CHILDREN BIKES, ROADSTERS, CITY BIKES
etc

Quality is the dominating aspect which influences consumer to purchase Atlas product, but
prompt availability of other Cycles brands and aggressive promotional activities by others
influences the consumer towards them and also leads to increase sales.

In comparison to Atlas Cycles, the other players such as Hero cycles provide a better availability
and give competition to the hilt.

People are mostly satisfied with the overall quality of Atlas Cycles, but for the existence in the
local market Atlas must use aggressive selling techniques.

LIMITATIONS

Atlas cycles is not able to capture the market share it should have captured & still lacks behind ,
inspite of having strong R&D unit and good infrastructure.

 Atlas cycles has not come up with much strong advertising campaigns since many years due to
which competitor like Hero cycles has an edge over it with greater market share

BIBLIOGRAPHY

Books:

Kotler Philip and Armstrong Gary,Principles of Marketing,12th edition, 2008, PHI Learning
Private Limited,M-97, Connaught Circus, New Delhi.
Varshney& Gupta, Marketing Management, 2005, Sultan Chand & Sons (P) Ltd., 4859/24,
Darya Ganj, New Delhi.
Gandhi, T.C., Marketing A Managerial Introduction, 2003,Sultan Chand & Sons (P) Ltd.,
4859/24, Darya Ganj, New Delhi.

Gupta &Suri, Case Studies in Marketing Management,2005, Himalaya Publishing House, 12/B
Ramdoot Building, Dr.BaleraoMarg, Girgoan, Mumbai.

Websites:
1. www.atlascycles.com
2. www.aicma.com
3. www.marketresearch.com
4. www.Cycles.com

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT

STUDIES
ATTENDANCE FOR PROJECT REPORT
Name of the student: Abhishek Sukhija

Class: BBA (Gen.) 2nd Shift

Roll No.: 06561101711

Name of the Supervisor: Mr. Rajiv Jain
S.No.

Date

Time

Progress Report

Signature of Signature of
the student

Supervisor

*Minimum (8out of 10) 80% attendance compulsory.

Coordinator