Task Approaches
To evaluate the current market for bicycles, and identify the size and growth rates of the key product segments This is desk research. Topics to investigate:
What is the installed base of UK bike ownership?
• This will give you some idea of the replacement market
• How many people use a bike to get to work might give a handle on this.
How many bikes are sold per year?
Sources:
• ONS production and import data
• Market reports such as Data Monitor Mintel
• Annual reports of Halfords
Market segmentation
• How is the bike market segmented? o By price, customer, features, by outlet?
• Segment the market and identify the characteristics of each segment you identify; where it is sold, what market share, what end user price?
The focus is on the UK market, but you might also sketch out in general terms the opportunity in the rest of Europe or elsewhere.
• Use ratios to estimate this population? GDP?

To determine the potential for a new range of electrically assisted bicycles based on new battery technology
Evaluate where this type of bike fits into your segmentation.
• What should be the specification of your proposed market entry? Features, price
• What is your estimate of market sales for this type of product?
• Would it make a sensible possibility for a company such as Cyclermate?

To understand the routes to market and margin structures of the channels
This requires an analysis of the structure of distribution of bikes in the UK.
• How many channels are there?
• What market segments do they serve?
• What is the average price of products through each channel?
• What percent of the market is sold through each channel?
• What gross margin is obtained in each channel?
This will be difficult. You might use annual reports of companies to build assumptions.

To identify the required pricing structure for the any proposed