schwinn bs final

Priyanka Keshavdas – 32A || Venkatraman Satyamurthy – 53A || Nikhil Bharadwaj – 27A Brajesh M – 14A || Satyaki Mascharak – 45A

GROUP - X

A case study on Schwinn Bicycles

Understanding the company

- Company founded by Adolph Arnold and Ignaz Schwinn in Chicago

- In 1900 there bicycles could go as fast as 60 miles per hours

- By 1909 as Automobiles came in , sales of bicycles dwindled

- Founded the balloon tire - biggest innovation in mountain bike technology in 1930

- It had also ventured into making parts and accessories for other motorcycle companies

- It shifted base to Boulder, Colorado to be nearer to mountain bike scene in 1994

- Pacific cycles bought Schwinn and united it with Pacific’s Cyles other brands

- Pacific cycles were in turn bought by Dorel industries, Inc. ,a global consumer product company

- Schwinn bicycles are still made with qaulity for dependability and performance

The case from hereon tries to find out the age of target market for Schwinn bikes and whether it is more popular in Colorado springs or St. Louis and it also tries to address the question on quality controlled study on the three suppliers and its business implications.

Part 1:Understanding the target age group

- There is a belief that the mean age of Schwinn bikes’ customers is older in locales where mountain bikes are more popular

- We have two samples, one from the Colorado springs and the other from St. Louis, with ages of a random group of customers

- We need to understand if there is any significant variation in mean age in different geographies

- Our null hypothesis is : No significant variation in mean age in different geographies,

µ1=µ2

- Our alternate hypothesis is: µ1≠µ2

- We used one way ANOVA for doing this analysis

- The analysis was done using Excel’s data analysis package

- 95% was the level of confidence in the test


- As per the analysis, we observe that critical F value for df= 19 and α=0.05 is 4.413

- Our calculated F value is coming out to be 18.387

- As this value is outside the acceptance region of -4.413 to 4.413, we have sufficient evidence to reject the null hypothesis that the mean age of customers is same across geographies

- It is clear that the assumption of mean age being greater in the areas where mountain areas is done is true

- In the light of this information, Schwinn can now mould its marketing strategy to suit different types of users

- It can segment its target market based on age, and purpose for which they use their bikes , and possibly come up with specific marketing campaigns for the concerned segments, and in the process increase sales of their bicycles

Part 2: Understanding the distribution of Handle Bar Weight

• The specified weight of the handle bar of a particular model of bike is assumed to be 200 Grams

• The handle bars are supplied by 3 different suppliers

• We need to perform a quality control of the bikes by understanding the distribution of Handle Bar Weights across the bikes supplied by the 3 suppliers

• Our Null hypothesis: No significant variation in the weights of the handle bars across the 3 suppliers

µ1=µ2

- Our alternate hypothesis is: µ1≠µ2

- We used one way ANOVA for doing this analysis

- The analysis was done using Excel’s data analysis package

- 95% was the level of confidence in the test

- As per the analysis, we observe that critical F value for df= 18 and α=0.05 is 3.633

- Our calculated F value is coming out to be 2.2122

- As this value is within the acceptance region of - 3.633 to 3.633, there is not sufficient evidence to reject the null hypothesis that there is significant variation in the weights of the handle bars supplied by the 3 different suppliers

- In the light of this information, we can conclude that the mean of handle bar weights is 200 grams across the 3 suppliers

- As regards to quality it is pretty evident that the suppliers are conforming to the standards set by Schwinn and there are no concerns about the quality of the bikes manufactured


schwinn bs final

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