The Market Potential of Helix

In the present day, developed and developing countries of the world are facing various problems like global warming, which is majorly caused by carbon emission from automobiles, increased traffic, depletion of fossil fuels etc. The best and simple remedy for all these problems is to GoEasy and green i.e. using bicycles. This will reduce the traffic congestion and the dependency on fossil fuels. It also provides lots of health benefits to the user. A research data shows that people who are coming to work by cycles are healthier and more productive than their counterparts. Though it has many advantages, people are not preferring cycles are due to some constraints like lack or improper of parking space, fear of theft or damage of whole bike or some parts, etc.

Helix is a foldable cycle specially designed considering all these constraints to make life easier and comfortable for the users. It is the smallest foldable cycle which can be carried everywhere with ease. Owing to its titanium frame its light weight and durable. The small size and foldable feature allow the user to take it in a public transport without disturbing others, office, classroom or anywhere with minimal space requirement. Unlike other foldable cycles, the wheels of Helix are bigger and can move even when it is folded. Hence, the user can just drag it which eliminates the problem of lifting. The innovative idea and the add-on features make Helix best of its kind.

Target Market:

It is the group of people to whom the product is aimed. They may be of people with similar characteristic traits like gender, age, education, work area, locality etc. A healthy target market is very much essential for any product to reach the market, without which the product is meaningless. They determine the flow of product in and out of the market. Identifying the target market helps to design the product to address and fulfill their needs to the maximum extent possible, which is the prime factor behind every business. Different people will have different perspectives towards a product. When it is found out and analyzed, it will give a clear picture of what actually the people want so that the company can add or remove accessories depending on the needs. This will help the firm to fix the price of the product.

The target market can be classified into two types:

Direct or Primary Target market are the people who buy the product for their own usage. They occupy the large spectrum of the market and are the one's business corporations give more concentration. The product is focused on satisfying their needs and views.

Indirect or Secondary Target market are the people who buy the product, not for their usage, may be to gift someone. They occupy only a meager area of the market spectrum and are not considered as they don’t have the experience of using that product.

The target market for Helix is identified to be:

People who use cycles as their main means of transportation or utilitarian.

People who do cycling as a hobby or recreational users.

A research was conducted in Toronto to estimate the number of people using cycles in 1999. Figures showed that more than half of the population were not using cycles and were relying on other modes of transport. Only one-fifth of the them was utilitarian and 28% were recreational users. The research was repeated on the same set of people in 2009 revealed an increase of 7% in people using cycles as their major transportation. The number of non-cyclists reduced to 48% and recreational users counts reduced by 2%.

Table 1: Details of people using cycles in 1999 & 2009.

  1999 2009

Number of people Percent Number of people Percent

Non-cyclist 520 52% 469 47%

Recreational users 280 28% 260 26%

Utilitarian 200 20% 271 27%

The increase in the number of cyclists may be due to the development of infrastructure, attitude of people towards cycling, introduction of new and sophisticated models, health concerns etc. This clearly shows the potential market for cycles and this numbers may increase in the future. The majority of the active users were 18 to 49 years of age, covering up to 73% of the spectrum. The contribution of people below 18 is very less which clearly shows that junior cycles are sought less in Toronto. Hence, the sizing problem is eliminated and more focus can be given to the aspects that are needed by people aged above 18 years. Near to a quarter of the spectrum is above 50 years of age which implies the need for safety accessories to assist them and to make their riding more comfortable.

Cycles are most preferred by the working class people. Around 72% of them rely on cycles for transportation and 77% uses them for recreational activities. The involvement of students is limited to 13%.

Another important parameter to be considered is the buying capacity of the people. Around 30% of the utilitarian category and 29% of recreational users have their annual income more than $100,000. Next to them 14% of utilitarians and 17% of recreational users have their annual income ranging from $40,000 to $60,000.