SIMC BENGALURU

“Mit hjem Danmark!”: The CountryConstitutional monarchy with a parliamentary

system of governmentMember of the European Union (EU)Mixed market capitalist economy and a large

welfare state"the happiest place in the world“ based on

standards of health, welfare, and educationMost flexible labour market in EuropeRanked as the least corrupt country in the world

in the 2008 Corruption Perceptions Index, along with Sweden and New Zealand

Kongeriget Danmark: Facts GDP - real growth rate:

Field info displayed for all countries in alpha order. -3.6% (2009 est.)country comparison to the world: 171 -1.2% (2008 est.) 1.6% (2007 est.)

Household income or consumption by percentage share: lowest 10%: 2% highest 10%: 24% (2000 est.)

Natural resources: Field info displayed for all countries in alpha order. petroleum, natural gas, fish, salt, limestone, chalk, stone, gravel and sand

Population: 5,500,510 (July 2009 est.)

Age structure: 0-14 years: 18.1% (male 511,882/female 485,782) 15-64 years: 65.8% (male 1,817,800/female 1,798,964) 65 years and over: 16.1% (male 387,142/female 498,940) (2009 est.)

The Product What is it?

Digital Bicycle Security System Comes with a remote controlled system that can be

fit into a watch Why this product?

The country has a huge existing market for bicycles Addressing the need for protecting Bicycles against

loss/theft How does it work?

Just set the lock by pressing a button on your watch System comes with a tracker. If the bike is stolen by

chance, its location can be retrieved by local police authorities via GPS

Market Analysis Around 18% of the total population uses cycling

as a mode for commuting Out of whom most of the people use bicycles to

get to work/schools Bicycles are covered under household insurance.

However, these are only aimed at the working class group and young people cannot avail it.

People are buying more and more expensive bicycles which attracts thieves

An estimated 222 bicycles are stolen in the country every day

Bike thefts soared to 75% during the last year

CompetitionBatavus is the leading Bicycle security

solution providers in the country

DK Bicycles had also got into manufacturing security locks and pads for bikes in Denmark

Jingdong Hardware manufacturers are an omnipresent company that operates the world over from China and is largely popular in Denmark

Marketing Strategy Tie ups (JVs) with a few bicycle manufacturers

Hold PR campaigns that involve demonstrating the use of the product at public forums and bike showrooms

Sell the Security systems at a discounted price along with the purchase of a new bike (brand who we have tied up with)

POP advertisements in and around bike showrooms

Distribution NetworksCollaborate with a local bicycle distributor

company such that we can initially save on plant costs

Tie ups with a few bicycle manufacturers and provide the security system as an add-on kit with the purchase of a bike

SWOT

PESTEL

PoliticalDepend crucially on a wide range of

supportive government policies to make cycling convenient and safe

The Government should implement key transport and land use policies that establish the necessary supportive environment for cycling to thrive

Government can provide policies whereby it can cut subsidies on the new digital security system in order to promote cycling

EconomicalThe cost of exporting the products into the

country might be a little expensive as the exchange rates will differ from one country to another

Social80% of the times, the bike thefts are

opportunistic

A need for a security system that everyone in the society can avail

There is a need for a fool proof security system

TechnologicalThe country does not have manufacturers

that specialize in making digital security systems for bicycles

The cost of technology used for the product is high, that being the reason the product is priced at a higher point

EnvironmentalThe security system indirectly helps to curb

CO2 emissions as better security of bikes will encourage more people to buy bicycles

LegalThe product is subject to legal consequences

if by chance it fails to deliver what it promises

The parties in collaboration (parent company and distributor) must adhere to the agreement formulated and have a mutual duty of fidelity and honesty towards each othesr

Porter’s 5 Forces Analysis

Bargaining Power of customers The customers might want discounts on the product

during the initial launch as they might point out at the fact that it is a new brand and therefore should not be priced so high

They have other substitutes to choose from if not our security system

Threat of New Entrants Makers of Bicycle Security systems already exist in

the market, if they are to adopt the “digital” concept of the product then it would be a major threat

Threat of Substitute Products Substitute products like pad locks, chains and public

security systems might take preference over the product

Bargaining Power of Suppliers The suppliers know that having a tie-up with them is

essential for us to tap into the market initially, therefore will quote a higher profit margin

Competitive Rivalry within an industry In a country like Denmark, there is no dearth of

technology and research. So, there is always a potential threat of competition coming up with better technological and advanced products

“Tak!” - Thank you