"TI Cycles has consciously moved from selling 'Cycles' to selling 'Cycling'"
13 June 2009
TI Cycles of India, owner of Hercules and BSA brands, has launched a wide range of cycles across segments since the company's inception in 1949. The bicycle itself has donned several roles in society. It means different things to different segments of users, generating the need for different genres of products with clearly differentiated positioning and communication.
Brand BSA has been positioned to address the comfort end of the market, while Hercules is targeted at the 'rough and tough' end.
Over the years, TI Cycles has consciously moved from selling 'Cycles' to selling 'Cycling'. This in turn has resulted in more investments in on-ground promotions to enable experiential marketing. In an e-mail interview with Jagadeesh Krishnamurthy, BK Singh, VP - Sales and Marketing, TI Cycles of India, talks about the company's initiatives in the on-ground space to promote 'Cycling', focus on rural markets and 'serious' cyclists. Excerpts:
How would you define major markets for the bicycle segment? Which is/are the fastest growing segments for (a) the company and (b) for bicycles in India?
The bicycle market can be categorized into five segments, namely: Standards, Juveniles, SLRs, MTBs and Kids. The Standards and the Juveniles target both the rural and the semi-urban markets, while the rest address the urban markets. These categories focus on the needs of different age groups, from the tender age of two years to an 18 year-old teen.
TI Cycles banks on MTBs, Kids and Juveniles, which are its fastest growing segments. However, in terms of the overall bicycle industry, MTBs and Kids emerge as the fastest growing.
Which are the major markets (geographically) for TI Cycles? And, which are the fastest growing markets for bicycles?
TI Cycles has an all-India presence via its flagship brands BSA and Hercules. The major markets for the company are the south and the east. All markets are contributing to growth, with slightly higher contribution from the north and east markets.
What is the estimated market share / market for TI Cycles?
We are the leader in the specials category and second at the all-cycles level.
What percentage of your marketing spends are on BTL activities? What formats and activities does this include? How much of this would be on-ground events / promotions?
TI Cycles has been the pioneer of cycles in India for the last 60 years. The company has progressed from selling the 'Cycle' to selling 'Cycling', and this has brought in focus on various BTL on-ground activities. The effort is to engage with all the key stakeholders of the business and BTL activities form a significant part of our total promotional spends.
TI Cycles have been actively sponsoring sporting events...
TI cycles has been actively sponsoring various events related to cycling in the past... the 'Hercules MTB - Himachal' and the prestigious 'Chennai Open' tennis tournament, to mention a few.
Is there an AoR for your on-ground events and promotions? How do you appoint an agency to work on a campaign?
We believe in being the basic enabler, i.e., working very closely with all our agencies at every stage. This ensures clarity and potential for higher level of contribution from the agencies. This spans across segments and activities.
Bicycles are a common mode of transport in rural India. How has TI Cycles tapped these markets?
More than 2/3rd of the markets are in below 5-lakh population towns. TI reaches its consumers through its large distribution system and multi-brand dealers. Besides the brand building activities through visibility, the company has various consumer engagement programs. These are targeted at both trade partners and end-consumers. Above all, TI Cycles has been at the forefront of bringing quality innovative products.
Have motorised two wheelers taken over from bicycles in rural markets? What is the scene in urban markets?
The bicycle industry has been growing at a very low single digit in the past five years. Looking at the healthy growth trend of the motorized two wheelers, it seems that there has been a definite shift. The improvement in infrastructure and public transport system too has impacted the industry. In urban markets, consumers are exiting from the industry (use of bicycles) much earlier than in the past.
Are there specific communication campaigns for the rural sector? Please elaborate on promotional efforts in these regions.
The company does both brand building and demand generation activities in all markets. However, activations are done with suitable adaptation to suit the nature of the markets.
Measurement has been a contentious issue across all mediums. How do you evaluate spends for an on-ground activation? Is it true that most decisions on events are still made by gut feel or instinct in the absence of measurement mechanisms?
We use both the lead and lag indicators to evaluate any of our campaigns, including the BTL activities.
Could you name some of the on-ground innovations by the brand?
We have various activities. To name a few:
FFF Rides (Fun, Fitness and Freedom Rides) - These rides are organized in various cities/ towns across the country, open for participants in the area by invitation only. These rides are joy rides that are conducted in the mornings with required arrangements like medical aid, water and refreshments and end with breakfast. This is serves as one of the best Outbound Training activities for corporate organizations.
Bicycle Rentals in Resorts - TI Cycles of India (TICI) has tied up with leading resorts (over 70 as of now) across the country and has placed high-end bicycles for a nominal rent. Guests staying at these resorts can use the bicycles for joy rides and exploring nearby areas.
MTB Tracks / Dirt Tracks - TICI has invested in development of dirt tracks to enable users to experience mountain biking in its true form. The first track was built at TICI Chennai and the other at Ooty boat house. These unique facilities can give a cycling enthusiast a memorable experience full of thrills and adventure.
Girl Child Training (Cycling) - Girl Child Training is being initiated in some rural areas. Under this initiative, girl students of the schools are trained to cycle. This helps boost their self confidence and become more independent, and we have received very positive response.
TI Cycles has been leveraging 'cycling' to promote the brand. How did you go about building communication around this?
As an organisation, we wanted to move from 'cycles to 'cycling' and from 'product' to 'experience'. We have always tried to address the needs of consumers and developed products accordingly. We complemented these by various on-ground activities as mentioned above. We also sponsor annual biking events like the Hercules MTB Himachal and The BSA Hercules Duathlon. In addition to the above, we have also tried to enhance the buying experience of consumers through our chain of retail outlets of BSA Go and Hercules Express.
You entered the fitness cycling space with a new product line. How different is it to promote these products as compared to promoting traditional bicycles?
Being fit and healthy is every individual's desire. We saw a great opportunity for us to be present in this space. Cycling as a sport is about being fit and sporty. There was therefore a synergy seen between cycling and fitness. BSA Workouts is retailed through our exclusive retail channels of BSA Workouts, BSA Go, Hercules Express and various multi-brand sports and fitness stores.
Is there a significant market of serious cyclists in India for your premium range products? What is the communication strategy devised for this TG?
Cycling today, be it to office, within office premises, for fitness, or for mere fun, is in vogue. One gets to experience this in cities like Bangalore, Pune, Chennai and Delhi. "I cycle to office" is being seen as a lifestyle statement with CEOs of reputed companies encouraging cycling to work. We have tied up with two very reputed international brands (Bianchi and Cannondale) and these are sold through our exclusive stores named 'Track and Trail'. There is a growing online community of bikers with whom we interact on products, events and community development.
Finally, will we see a growth in your BTL marketing spends in the coming years? And, what specific areas would we see an increase in?
A fair amount of the total marketing spends are already being spent on various on-ground activities. Our focus is to encourage more urban youth to take up cycling as a means of recreation and staying fit.