Public Funding for Scottoiler (Scotland) Limited

Scottoiler has been designing and manufacturing award winning chain lubrication systems for motorcycles since 1986. The oiler system works by delivering lubrication to a motorcycle chain as it is driven. Scottoiler has developed an international reputation and brand with a multi channel market strategy with OEM, wholesaler, dealer and end user outlets. Ten years ago the company looked at developing a product similar in nature to the motor cycle chain oiler for the bicycle. Some ad-hoc activity took place culminating in the development of an initial prototype in 2002. However initial testing failed to deliver meaningful results and the project was halted. Initially the project was regarded as a development of the existing motor cycle oiler. It turned out to be a requirement to design a completely new system for the cycling community. The impression remained that there was a large market opportunity for an oiler for bicycles. Following on from a very successful Proof Of Market exercise supported by the Technology Strategy Board, it was established that there was a significant and tangible market opportunity of £150M for a targeted market sector of the cycling community. In addition the user product requirements were also established with potential price points for market entry. The purpose of this Proof of Concept exercise is to test the technical feasibility of the user requirements. If the user concepts can be proven to be technically feasible a product would be highly desirable to the targeted market and hence the decision to make final the investment to develop the sellable product can be made from a position of knowledge and understanding.

Scottoiler has been developing and manufacturing award winning chain lubrication systems for motor bikes since 1986. The system works by delivering lubrication to a motor bike chain as it is driven. This increases the life of the bike chain and sprockets, improves performance, reduces bike chain maintenance saving time and money for the owner. The company based near Glasgow in Scotland has successfully developed an international reputation and brand. Scottoiler has a multi channel market strategy with OEM, wholeseller, dealer and end user outlets. This market is well understood with product volumes being directly related as a percentage of both the second hand and newly purchased bikes by market territory. Over a decade ago the company looked at developing a product similar in nature to the motor bike chain lubricator for the bicycle market. Some ad-hoc activity took place culminating in the development of an initial prototype in 2002. However no further progrees was made. Some laboratory testing suggests that cyclists performance can be enhanced in addition to savings on chain maintanance and chain life. The impression remains that there is a large and, as yet, un-quantified market opportunity for a chain lubrication system for bicycles. The purpose of this Proof of Market project is to assess the commercial viability and market demand for a Chain Lube Delivery System.