TI Cycles, a Rs 470-crore unit of Chennai-based Tube Investments of India, makers of popular brands Hercules and BSA, is adopting a new brand building strategy wherein the ad campaigns will focus on the features of the products.
The brand building initiatives would be supplemented by heavy on-ground activities like sponsoring of cycling events. G Hari, President, TI Cycles, says the latest Hercules ad, featuring cricketer Yuvraj Singh is the first step towards achieving the objective. Besides this the company will be sponsoring all the national cycling events that are hosted by Cycling Federation of India. In addition to organising five national cycle championships, the company at present is spending around five per cent of its annual turnover on advertising and around Rs 1.5 to 2 crore will be spent this year on the ground events as well, he informs.
The cycle market in India is estimated at Rs 1,500 crore. As per Hari, there are four major players - Hero, Atlas, Avon and TI Cycles. Out of these, TI Cycles brand Hercules, with an array of products, from the Mountain Terrain Bike (MTB) and Lady Bird to the Sports Light Road (SLR), contribute significantly to the 30.5 per cent marketshare the company holds. TI Cycles is targeting a 10 per cent increase in both its annual turnover and marketshare this fiscal. Increased focus on ground activities will act as a buffer, says Hari. "We exported 33,000 cycles last year; this year, we'll sell over one lakh Hercules and BSA cycles to Middle East and Africa," he adds.