Financial Daily from THE HINDU group of publications
Tuesday, Mar 08, 2005

Port Info

Group Sites

Corporate - Outlook
Marketing - Channels and Franchises

TI Cycles bets on exclusive franchisee route for growth

Our Bureau

Chennai , March 7

TI Cycles of India, a Murugappa group company, is opting for exclusive franchisee route to sell more cycles. All variants of its 80 models of cycles, accessories, fitness equipment, after-sales service and easy purchase options in one place - at the TI Cycle World - is what the company is offering buyers.

Addressing reporters at the inauguration of the second TI Cycle World here on Monday, Mr Mohit Khattar, Vice-President, TI Cycles, said that a TI Cycle World would thus meet the needs of the company's entire market segment.

They could expect to see the entire range at company assured prices and guarantees. Facilities would also be available for the prospective buyer to test-ride cycles and get it delivered at his doorstep, exchange old cycle for new, use a credit card to buy, or opt for hire purchase, he said.

The point of the exercise in this franchisee model is to offer the customer something more than what the neighbourhood multi-brand cycle dealer would offer.

A satisfied customer talking of a happy experience is a sure route to attracting more. For instance, at the first TI Cycle World opened nearly a year ago, cycle sales have doubled compared with sales when the franchisee was just another dealer, according to Mr Khattar.

To the company, the value is not in just increasing sales but also building its brands. In the utility segment, brand awareness is high. Over 80 per cent of the customers know what make they want.

In most other segments only about 50-60 per cent look for a particular brand. An exclusive outlet showcasing what the company has on offer will strengthen the brand, he said.

TI Cycles is hoping to first set up over 25 such franchises in the top six-seven cities, including the metropolises. In Tamil Nadu, they would come up in Coimbatore and Madurai soon. In Chennai alone it hopes to set up four, with the third expected in April.

TI Cycles has been experimenting with novel marketing options. Earlier it was the `Cyclinic,' where a customer could get specialised after-sales service at a dealer. A TI Cycle World goes beyond that concept, Mr Khattar said.

TI Cycles makes and markets cycles in three brands — BSA, Hercules and Philips — and has a 30 per cent share in a market where industry estimates peg cycle sales at about 10 lakh a year.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GAIL investments overseas at Rs 257 cr

L&T-CASE gets Rs 2.5 cr order from Mumbai Corporation
RIL bags export awards
`Companies must recognise different skills of women'
Aditya Birla group enrolls execs for online MBA course
SC okays out-of-court settlement — Mallya to acquire Kishore Chhabria's stake in Herbertsons for Rs 131 cr
Dabur shareholders okay Balsara buy
Narmathaa Textiles sets up processing unit at Erode
Forbes group, HDFC set up publishing co
Custom-made coaches for Kingfisher Airlines
Sirpur Paper rights issue
Kerala CM moots Rs 20-cr loan from KMML to revive Autokast
Tata Motors aims for billion-dollar biz from chassis, bus body building
TI Cycles bets on exclusive franchisee route for growth
Kishore vows to stay in liquor biz
Mid-Day Multimedia mulls starting a national tabloid
Toyota may roll out small car for Indian market
Tata Motors February sales up 20 pc

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line