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Folding bikes
industry

Secondary data
is data which already exists for example government statistics and internet
research. An advantage is that you are able to find a lot of information very
quickly but a disadvantage is that you it could but outdated.

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Primary
research is first hand data that is used go get information from examples such
as questionnaire/surveys and interviews. The advantage for this is it will be

Brompton bikes
are one of the largest manufactures the UK, it is based in Greenford, London.
Which was previously based in Brentford. Brompton bikes are a successful
running business that is known all around the UK, which is making around
400,000 on production a year.

They also have
feature which allows the public to rent/hire a bike from one point to another
point, the bikes will be outside and you will have to give a small deposit and
you will get that back after returning back the bike to point you put. Recently
now 35-40% customers of Brompton are women. Which has increased over the years
and the average rider’s age has also dropped below 40 younger people are
starting to ride bikes.

Advantage of
folding bikes are that it is easy to carry around, you can also pack it and
take it on holiday if you enjoy riding bikes, this also shows that these bikes
are really light and it won’t be struggle to carry around like loading it
inside your car. Another good advantage is that you are able to take these
types of bikes on transport such as trams as they allow only folded bikes and
this can help you as save time if you have long journey.

Another option
you can get with the bike is that it can be electric powered so if you just use
to get to places it will be an easy journey and easy to pack.

The
disadvantage for folding bikes is that these bikes are quite expensive, as they
price from £150-300 depending on the size and style you want. Also with design
of the bike doesn’t look so good and for me the high seat it doesn’t look nice.

Aims and
objective

 

 

 

The target
market of these are for the older people

And around 23%
ride bikes and this is really bad as there is so much more potential

Doesn’t look
great

Not many young
people ride bikes

 

 

PEST ANALYSIS OF BROMPTON BICYCLE:

Political factor:

Many people are cycling on London
major roads and it has nearly doubled since 2000 and TfL is targeting a 5% mode
share for cycling by 2025. South West Trains is a part of Stagecoach Group, has
joined forces with Brompton Bicycle to encourage passengers for cycle as part
of a fully integrated low carbon journey combining bike and train. Every one
like this bikes because it is efficient to ride but can be quickly folded into
a package smaller than an average suitcase, so people can take wherever they
like.

 

Political factor:

 

Economic factor:

Though exports account for around
75 per cent of its output, it continues to manufacture all of its bikes in the
UK. It’s getting profit here.

Social factor:

Brompton bike got an award, Mr
Ritchie, who was awarded the prize that recognizes a lifetime contribution to
design, he has spent 21 years perfecting to the Brompton, which is manufactured
in Britain and sells around the world. At a reception in Buckingham Palace 50
years of British design genius was celebrating.

The social trends for folding
bikes is that sales in bikes increased during the Olympics because people saw

Technological factor:

When transporting a Brompton
Bicycle by Train, Car plane or boat it would be beneficial to have a protective
case. There is a need for such a protective case to also double as a fully
functional bike trailer so it will attach to the rear of the bike and be used
to transport light to moderate loads.

SWOT ANALYSIS OF BROMPTON BICYCLE:

Strength:

Brompton bicycle is travel free
and without booking restrictions we can use on rail, bus, underground, and
ferry or air services. It’s that freedom to travel anywhere that gives folding
bikes a magic quality. A folding bike can be new ways of travelling. Its have
many colour with extra tall frame to fit tall riders.

From 1976, Brompton was in
business, but growth was infuriatingly slow. Today, Brompton Bicycle Ltd turns
out 100 precision-crafted bikes a day from its cosy in Kew.

Brompton bicycle sold in 27
international markets and servicing needs of the 200,000 Brompton users who are
already on the road. They make something fashionable. People like the Brompton
because it’s fun and it fits into their lives. In London, the bike is moving
from being an issue of personal choice. On the corporate side, Brompton already
leases a fleet of bikes to South West Trains at Waterloo. Mr Butler-Adams
planned to provide package deals including bikes, training, storage and
insurance to other companies. Brompton Bicycle is going to produce 25,000 bikes
this year, achieving sales of £7m- £8m. Ritchie expects it to grow 25% a year
under the leadership of managing director Butler-Adams. Brompton bicycle
exports to markets to Netherlands, America, Germany, Japan and Scandinavia
account for about 60% of its sales.

Weakness:

Brompton bicycle’s seat pillars
in both steel and aluminium versions. Standard seat pillar, the Brompton and
Brooks saddles can be up to 995mm from the ground. If customer’s inside leg is
more than 33″/84cm, he will almost need either of the longer seat pillars.
So for the shorter people it can be difficult for ride. It’s not adjustable as
other bigger cycle. The merits and drawbacks of small and large wheels alike
can be argued into the late hours.

Opportunities:

The Brompton is the only bike in
the world to combine such ready portability with a first-class ride, and it
creates countless new opportunities for using a bicycle. Malcolm Shepherd,
Chief Executive of Sustrans said: “Cycling England has been a crucial
conduit for funding which has touched the lives of millions of people by making
it possible for people to cycle for everyday journeys. And Brompton bikes are
suitable for the every journey.

Here are so many bike company
competitor for the Brompton bikes. Alldays & Onions, Bickerton- folding
bikes. Boardman bikes, british eagle, claud bulter, dawes, etc.. Bicycles are
here. Like Brompton bickerton is also a folding cycle. It can be a main
competitor. The Bickerton was a portable, aluminium folding bicycle designed by
Harry Bickerton it had manufactured in the UK between 1971 and 1991. The
bicycle was made of aluminium profiles and riding properties were poor,
aluminium parts could never be properly locked in place. Its weight and folded
package size broke and it is cited by Andrew Ritchie as one of his inspirations
in creating the highly successful Brompton bicycle. So the Brompton is better
than any cycle that’s why70% Brompton bike are exporting to Asia and Europe.

 

Threats:

The UK folding bike Brompton is a
curious company. Brompton bicycle exports for around 75 per cent of its output,
it continues to manufacture all of its bikes in the UK.

Brompton bicycle’s many parts are
custom made so it may bring delays and extra costs for repairing than authorized
dealers. The bike is less suited to long rides as most models have restricted
gears. Riders requiring a bottom bracket to saddle top height of more than
715mm/28″ can select an extended seat post to give a maximum saddle height
of 775mm/30.5”

-http://www.bikesandtrailers.com/folding-bikes/brompton.html

Before doing any business first
we have to do pest analysis in that country which is following:

Competitors

Brompton,
Birdy, Dahon, Strida

PESTLE

Social trend:
what to buy during the Olympics a massive increase in bike sales.

Dahon bicycles
have at least 60% of the folding bicycle market. If bicycles imitating the
Dahon folding system are included, Dahon-type bikes account for about 80% of
the folding bicycle market.

Dahon bicycles
are dominant in the market largely due to:

 A dealer network significantly more extensive
than their rivals.

– Producing at
a volume that allows them to sell at a lower cost than their rivals.

– A relatively
simple and reliable folding design.

– Being mostly
compatible with standard, non-proprietary bicycle parts.

– A ride
quality similar to basic full-size bicycles.

Top of Form

 

Folding Bikes questionnaire

What is your gender?

Male

Female

What is your age?

16 – 18

19 – 25

26 – 35

35+

Do you own a bike?

Yes

No

What type of bike do you own?

BMX

Mountain Bike

Racing Bike

Folding Bike

Other:

 

How often do you ride your bike?

Daily

2 – 4 times a week

More than 5 times a week

Weekly

Never

Which of the following reasons
apply to you for riding your bike?

Going to work, School and college

Fitness/exercise

Other:

 

What do you mainly look for when
buying a bike?

Type of bike

Cost

Brand

Looks

Other:

 

4PS ABOUT THE PRODUCT:

Product:
my product is folding bicycle.

Price:
labour cost will be low so per cycle it will cost £90.

Place:
i will open my company in Colombo kingdom of sri lanka because there i can get
more facility than other place.

Promotion:
The literacy rate is 92% in Sri Lanka which is considered as a good rate. To
sell the Brompton folding bikes every company more emphasizes on direct
marketing such as event or trade show and personal selling. We will give this
news first all over in sri lanka later 3 other countries by tv news and
international newspaper.

MARKETING PLAN:

Our
product have made plan for Brompton folding bicycle for next five yrs. To
increase our sale and profit we will spend half of our advertisement budget on
personal selling because by this only we can aware consumers about our products
and persuade consumers to buy the products.

PRODUCTION CAPACITY:

During
the first year, product will be imported to Sri Lanka and later the demand of
the product goes 3 other countries to have a manufacturing Unit can also be
considered. This will result in better pricing of the product will result in
more sales and Profits.

BUDGET:

Selling expenses:

Staff
salaries, Sales support and distribution staff expenses are included. The total
expenditure is

£
1210000.00

Sales and advertisement:

For
radio advertisement =£5000

Newspaper/magazine
=£6000

Tv
ad =£25000

Sales
promotion =£250000 including customer awareness program

Customer
oriented =£200000

Trade
oriented =£750000

Support
line =£600000

 

 

 

 

 

 

January

February

March

April

May

June

July

August

September

October

November

December

Newspaper

 

 

 

 

 

 

 

 

 

 

 

 

Social Media

 

 

 

 

 

 

 

 

 

 

 

 

Leaflets

 

 

 

 

 

 

 

 

 

 

 

 

Billboards

 

 

 

 

 

 

 

 

 

 

 

 

Tv Ads

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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