Thesis Report

On
Product Strategy of Motorbike Industry in Bangladesh:
A Case Study on TVS Auto Bangladesh Ltd.

Submitted by:
Partho Saha
ID: EMBA2202026001
Major: Marketing
Semester: Summer-2023
Sonargaon University (SU)

Submitted to:
Department of Business Administration
Sonargaon University (SU)
Submitted for the partial fulfillment of the degree of
Executive Master of Business Administration

Sonargaon University (SU)

147/I, Green Road, Tejgaon, Dhaka-1215, Bangladesh.

Date of Submission: September 05, 2023

i
 Thesis Report
On
Product Strategy of Motorbike Industry in Bangladesh:
A Case Study on TVS Auto Bangladesh Ltd
Submitted by:
Partho Saha
ID: EMBA2202026001
Major: Marketing
Semester: Summer-2023
Sonargaon University (SU)

Submitted to:
Sharmila Sikder
Assistant Professor
Department of Business Administration
Sonargaon University (SU)
Submitted for the partial fulfillment of the degree of
Executive Master of Business Administration

Sonargaon University (SU)

147/I, Green Road, Tejgaon, Dhaka-1215, Bangladesh.

Date of Submission: September 05, 2023

ii
 Letter of Transmittal

September 05, 2023

Sharmila Sikder
Assistant Professor
Department of Business Administration
Sonargaon University

Subject: Submission of thesis paper.

Dear Madam,
I am hereby submitting my thesis paper entitled “Product Strategy of
Motorbike Industry in Bangladesh. A Case Study on TVS Auto
Bangladesh Ltd.” which was assigned to me as a requirement for the
completion of the EMBA Program. I have discovered this paper very
interesting, beneficial, and insightful.

The entire report is based on my practical experience in TVS Auto Bangladesh

Ltd. I expect this paper to be informative as well as comprehensive. This thesis
paper will help me a lot in my future career life.

Thank You very much for your guidance and cooperation during the course
without which this thesis paper cannot be completed.

Moreover, if you have any further inquiries concerning any additional

information, I would be very pleased to clarify that.

Yours Sincerely

Partho Saha
ID: EMBA2202026001
Major: Marketing
Department of Business Administration
Sonargaon University (SU)

iii
 Declaration of Student

This is to notify you that, the thesis paper on “Product Strategy of Motorbike
Industry in Bangladesh. A Case Study on TVS Auto Bangladesh Ltd.”, has
been prepared as a part of my dissertation formalities. It is an obligatory part
of my EMBA program to submit a thesis paper.

Moreover, I was inspired and instructed by my supervisor Sharmila Sikder,

Assistant Professor, Department of Business Administration, Sonargaon
University.

I am further declaring that I did not submit this report anywhere for awarding
any degree or certificate.

Yours Sincerely

Partho Saha
ID: EMBA2202026001
Major: Marketing
Department of Business Administration
Sonargaon University (SU)

iv
 Certificate of Supervisor

This is to certify that the thesis report “Product Strategy of Motorbike

Industry in Bangladesh. A Case Study on TVS Auto Bangladesh Ltd.” has
been prepared as a part of completion of the EMBA program from Department
of Business Administration, Sonargaon University (SU), carried out by Partho
Saha, bearing ID: EMBA2202026001 under my supervision. The report or the
information will not be used for any other purposes.

Sharmila Sikder
Assistant Professor
Department of Business Administration
Sonargaon University (SU)

v
 Acknowledgment

In the beginning, I would like to convey my sincere appreciation to the

Almighty God for giving me the strength and ability to finish the task.

I want to thank my academic supervisor Sharmila Sikder, Assistant Professor,

Department of Business Administration, Sonargaon University, for providing
me with all the necessary help for the completion of this report. I want to give
the greatest thanks to her for guiding me as an advisor to start and complete
this report successfully.

The opportunity I had with TVS Auto Bangladesh Ltd. is a great chance for deep
learning and professional development. I consider myself a very lucky
individual as I was provided with an opportunity to be a part of it. I am also
grateful for having a chance to meet so many wonderful people and
professionals who led me through this period.

I would like to express my deep sense of thankfulness to Md Jamir Sikder, GM,

HR & Admin, Head Office, Tvs Auto Bangladesh ltd for his enormous help and
endless support throughout the dissertation period.

And last but not the least; thanks to all my office colleagues working at Tvs Auto
Bangladesh ltd. The opportunity I had with Tvs Auto Bangladesh ltd is a great
chance for deep learning and professional development. I consider myself a
very lucky individual as I was provided with an opportunity to be a part of it. I
am also grateful for having a chance to meet so many wonderful people and
professionals who led me through this period.

vi
 Abstract

The motorbike industry in Bangladesh has witnessed substantial growth in

recent years, driven by factors such as increasing disposable income, improved
road infrastructure, and changing consumer preferences. This thesis paper
presents a comprehensive analysis of the product strategies adopted by three
prominent motorbike manufacturers in Bangladesh: TVS Auto Bangladesh Ltd.
The study utilizes a case study approach, incorporating both qualitative and
quantitative research methods. Primary data is collected through interviews
with key stakeholders, including executives from the respective companies,
industry experts, and consumers. Additionally, secondary data from industry
reports, academic literature, and online sources are employed to complement
the primary findings. The analysis examines various aspects of the product
strategies, including product development, market segmentation, branding,
pricing, and distribution channels. Furthermore, it explores the unique
challenges and opportunities faced by each company in the competitive
landscape of the Bangladeshi motorbike industry. The findings reveal that all
three companies have implemented distinct product strategies to cater to the
diverse needs and preferences of Bangladeshi consumers. TVS Auto
Bangladesh Ltd. have introduced a wide range of motorbike models with
features and specifications tailored to different customer segments.
Additionally, they have emphasized effective branding and marketing
strategies to enhance their brand equity and attract target customers. The
study concludes by providing valuable insights into the product strategies of
TVS Auto Bangladesh Ltd. in the Bangladeshi motorbike industry. The findings
contribute to the existing body of knowledge on product strategy and provide
practical recommendations for motorbike manufacturers operating in
Bangladesh. It is hoped that this research will serve as a valuable resource for
industry practitioners, academics, and policymakers interested in
understanding and improving the motorbike industry in Bangladesh.

vii
 Table of Contents
Cover Page…........................................................................................................................................................................................................
i
Inner Page….........................................................................................................................................................................................................
ii
Letter of Transmittal….............................................................................................................................................................................. iii
Declaration of Student …..............................................................................................................................................................................iv
Certificate of Supervisor…..............................................................................................................................................................................
v
Acknowledgment…..................................................................................................................................................................................................
vi
Abstract…....................................................................................................................................................................................................................
vii
Table of Contents…..............................................................................................................................................................................................
viii

CHAPTER 1…..............................................................................................................................................................................
1-6
Introduction…..............................................................................................................................................................................
1
1.1 Introduction…...........................................................................................................................................................................................
2
1.2 Origin of the Report…..............................................................................................................................................................................
2
1.3 Background of the Study…..............................................................................................................................................................................
2
1.4 Scope of the Study…..............................................................................................................................................................................
3
1.5 Objectives of the Study…..............................................................................................................................................................................
3
1.6 Methodology of the Study 3
1.7 Limitations of the Study…..............................................................................................................................................................................
5

CHAPTER 2…..............................................................................................................................................................................
7-14
Literature Review…..............................................................................................................................................................................
7
2.1 Literature Review…..............................................................................................................................................................................
8
2.1.1 Product Design and Features: Influencing Customer Preferences…........................................................................................................................................
10
2.1.3 Pricing Strategies: Determining Value Proposition…......................................................................................................................................................................
10
2.1.4 Branding and Market Positioning: Creating a Unique Identity…..............................................................................................................................................
11
2.1.4 Product Design and Features…..............................................................................................................................................................................
11
2.1.5 Pricing Strategies…..............................................................................................................................................................................
12
2.1.6 Branding and Market Positioning…..............................................................................................................................................................................
12
2.1.7 Challenges and Opportunities in the Motorbike Industry of Bangladesh…..........................................................................................................................
12
2.1.8 Case Study: TVS Auto Bangladesh Ltd…..............................................................................................................................................................................
14

CHAPTER 3…..............................................................................................................................................................................
15-34
Organizational Profile…..............................................................................................................................................................................
15
3.1 History…...................................................................................................................................................................................................
12
3.2 Mission….................................................................................................................................................................................................
12
3.3 Vision…....................................................................................................................................................................................................
13
3.4 Strategic Objectives…..............................................................................................................................................................................
13
3.5 Core Values…..................................................................................................................................................................................................
13
3.6 Location…...............................................................................................................................................................................................
14

viii
 3.7 Corporate Information…..............................................................................................................................................................................
17
3.8 Milestone…...............................................................................................................................................................................................
17
3.9 Product List…....................................................................................................................................................................................................
17

CHAPTER 4…..............................................................................................................................................................................
35-41
Product Strategy of TVS Auto Bangladesh Ltd. 35
4.1 Analysis for Product Strategy of Motorbike Industry in Bangladesh …...................................................................................................................................
36
4.2 Product/Market Strategy…..............................................................................................................................................................................
36
4.3 Strategy Evaluation…..............................................................................................................................................................................
36
4.4 Sales & Marketing Strategy…..............................................................................................................................................................................
36
4.5 Strategic Business Unit…..............................................................................................................................................................................
37
4.6 Basis for segmenting the market…..............................................................................................................................................................................
37
4.7 Definition of the markets for the product…..............................................................................................................................................................................
37
4.8 Profile of the customers in each segment…..............................................................................................................................................................................
37
4.9 Scope and dimensions of each market…..............................................................................................................................................................................
38
4.10 Expected rate of growth of each segment…..............................................................................................................................................................................
38
4.11 Requirements for success in each market…..............................................................................................................................................................................
38
4.12 Marketing standing with established customers in each segment…......................................................................................................................................
38
4.13 Benefits customers in different segments derive from the product…....................................................................................................................................
38
4.14 Reasons for buying the product in different segments….............................................................................................................................................................
39
4.15 Customer attitudes in different segments…..............................................................................................................................................................................
39
4.16 Overall reputation of the product in each segment 39
4.17 Purchase or use habits that contribute to this attitude 39
4.18 Reasons that reinforce customer's faith in the company and product…..............................................................................................................................
39
4.19 Reasons that force customers to turn elsewhere for help in using the product…........................................ 39
4.20 Life-cycle status of the product…..............................................................................................................................................................................
40
4.21 Story of the product line quality development, delivery, service…...........................................................................................................................................
40
4.22 Product reaches and improvements planned…..............................................................................................................................................................................
40
4.23 Market share: overall and in different segments….........................................................................................................................................................................
40
4.24 Deficiencies in serving or assisting customers in using the product…................................................................................................................................
40
4.25 Possibility of reducing services in areas where customers are becoming more self-sufficient…..........................…..
41

CHAPTER 5…..............................................................................................................................................................................
42-45
Findings…..............................................................................................................................................................................
42
5.1 Findings….............................................................................................................................................................................................43

CHAPTER 6…..............................................................................................................................................................................
46-50
Recommendations and Conclusion…........................................................................................................................................................
46
6.1 Recommendations…..............................................................................................................................................................................
47
6.2 Conclusion…..........................................................................................................................................................................................
49
Bibliography…..............................................................................................................................................................................
51
References…..............................................................................................................................................................................
ix 52
Chapter: 01

Introduction

1|Page
1.1 Introduction

The motorbike industry plays a vital role in the transportation sector of

Bangladesh, offering an affordable and convenient means of commuting for
millions of people. Over the years, this industry has witnessed significant
growth and competition, with several prominent players vying for market
dominance. Understanding the product strategies adopted by companies in this
industry is crucial for assessing their market position and identifying areas for
improvement. This thesis paper aims to explore the product strategies
employed by three leading motorbike manufacturers in Bangladesh: TVS Auto
Bangladesh Ltd.

1.2 Origin of the Report

This thesis paper is the outcome of extensive research conducted on the

product strategies of the motorbike industry in Bangladesh. The author, having
a keen interest in marketing and a passion for the automotive sector, identified
the need for a comprehensive analysis of the product strategies employed by
major motorbike manufacturers. The report draws upon various primary and
secondary sources, including interviews with industry experts, market reports,
company publications, and academic literature.

1.3 Background of the Study

The motorbike industry in Bangladesh has experienced remarkable growth in

recent years, driven by factors such as rapid urbanization, improved road
infrastructure, and increasing purchasing power of consumers. The entry of
both domestic and international manufacturers has intensified competition,
leading to a diverse range of motorbike models available in the market. To gain
a competitive edge, companies need to develop effective product strategies that
align with consumer preferences and market demands.

2|Page
1.4 Scope of the Study

This study focuses on the product strategies implemented by three prominent

motorbike manufacturers in Bangladesh: TVS Auto BangladeshLtd. These
companies have established themselves as key players in the industry and have
a substantial market share. By examining their product strategies, including
aspects such as product positioning, pricing, branding, and promotional
activities, this research aims to provide insights into their competitive
advantage and market performance.

1.5 Objectives of the Study

Broad Objective:
The broad objective of this study is to analyze and evaluate the product
strategies employed by TVS Auto Bangladesh Ltd in the motorbike industry of
Bangladesh.

Specific Objectives:

To examine the product positioning strategies of TVS Auto Bangladesh Ltd in

the Bangladeshi motorbike market.
To assess the pricing strategies adopted by these companies and their impact
on market penetration and consumer perception.
To analyze the branding and promotional activities undertaken by TVS Auto
Bangladesh Ltd to create brand awareness and enhance customer loyalty.
To evaluate the effectiveness of product diversification and innovation
strategies employed by these companies in meeting consumer needs and
preferences.

1.6 Methodology of the Study

This study adopts a qualitative research approach to delve into the product
strategies of TVS Auto Bangladesh Ltd in the context of the motorbike industry
in Bangladesh. Primary data will be collected through in-depth interviews with

3|Page
industry experts, including marketing managers and executives from the three
companies. Secondary data will be sourced from company reports, industry
publications, academic journals, and relevant books. The collected data will be
analyzed using thematic analysis to identify patterns and draw meaningful
conclusions.

Source of Secondary Data

Research Objective Definition:

Clearly define the objectives of the study, such as understanding TVS Auto
BangladeshLtd.'s product strategy, analyzing its effectiveness, and evaluating
its impact on the motorbike industry in Bangladesh.

Case Selection and Data Collection:

Select TVS Auto BangladeshLtd. as the case company. Gather data through a
combination of primary sources (interviews, surveys, company reports) and
secondary sources (industry reports, news articles) to provide a
comprehensive view.

Data Validity and Reliability:

Ensure the collected data's validity and reliability through triangulation, cross-
referencing different sources, and using established research methods and
tools.

Industry Analysis:
Conduct a detailed analysis of the motorbike industry in Bangladesh, including
market trends, consumer preferences, competition, and regulatory factors. This
provides context for understanding TVS Auto Bangladesh Ltd. product strategy.

Product Strategy Analysis:

Analyze TVS Auto Bangladesh Ltd. product strategy, considering factors like
product positioning, differentiation, target market, pricing, branding, and
innovation. Compare their strategy with competitors and industry best
practices.

4|Page
SWOT Analysis:
Perform a SWOT analysis of TVS Auto Bangladesh Ltd. product strategy,
identifying its strengths, weaknesses, opportunities, and threats. This aids in
understanding the internal and external factors influencing their strategy.

Case Study:
Present a comprehensive case study of TVS Auto Bangladesh Ltd., highlighting
their historical product strategy evolution, key decisions, successes, challenges
faced, and adaptation strategies.

Effectiveness Evaluation:
Evaluate the effectiveness of TVS Auto Bangladesh Ltd. product strategy by
analyzing metrics such as market share growth, customer satisfaction, financial
performance, and product lifecycle management.

1.7 Limitations of the Study

 The findings of the case study may be specific to TVS Auto Bangladesh
Ltd. and may not be applicable to other companies or the broader
motorbike industry in Bangladesh.

 Focusing solely on TVS Auto Bangladesh Ltd. might not provide a

comprehensive understanding of the entire motorbike industry's
product strategy dynamics in the country.

 The study's time frame may not allow for a complete analysis of the long-
term effects of TVS Auto Bangladesh Ltd.'s product strategies, potentially
overlooking significant trends and developments.

 The study's conclusions could be limited by the availability and accuracy

of data provided by TVS Auto Bangladesh Ltd., affecting the depth and
reliability of the analysis.

5|Page
 The researcher's interactions with the company's personnel and
management might introduce bias in data collection and interpretation,
potentially influencing the study's outcomes.

 Economic, political, or technological changes occurring outside the scope

of the study might impact TVS Auto Bangladesh Ltd.'s product strategy,
potentially confounding the analysis.

 The study might not encompass the viewpoints of all relevant

stakeholders, such as customers, competitors, and government agencies,
potentially leading to an incomplete understanding.

 The motorbike industry is subject to rapid changes in consumer

preferences, technology advancements, and market dynamics, which
might challenge the study's ability to capture the latest trends.

 Limited access to resources like budget, time, and personnel might

restrict the scope of the study, preventing a more in-depth analysis of TVS
Auto Bangladesh Ltd.'s product strategy.

 If the study heavily relies on interviews with key personnel from TVS
Auto Bangladesh Ltd., their availability, willingness to share information,
and potential biases could impact the quality of the data collected.

6|Page
 Chapter: 02

Literature Review

7|Page
2.1 Literature Review
Marketing activities are crucial for the success of companies in the motorbike
industry. According to Millat (2010), motorbike manufacturers in Bangladesh
should place more emphasis on their marketing activities. This includes participating
in trade fairs and utilizing the internet as a marketing tool. Establishing an
international reputation is also important for building credibility and expanding
market reach.

Buyer-seller relationships and promotional support are critical factors in the apparel
sector, as studied by Kincade, Woodard, and Park (2002). This finding highlights
the importance of strong relationships between motorbike manufacturers and their
customers for promotional support, which can contribute to overall success in the
industry.

Kennedy (2003) points out that under turbulent market conditions, such as in the
apparel industry, companies often become overly reliant on their existing customers.
This observation can be applied to the motorbike industry as well, emphasizing the
need for companies to diversify their customer base and avoid overdependence on a
few key customers.

In the clothing industry in Slovenia, advertising, personal selling, sales promotion,

and public relations were identified as the most important instruments of the
marketing communications mix, as found by Završnik and Mumel (2007). Similarly,
motorbike manufacturers in Bangladesh should consider utilizing a combination of
these marketing communication tools to effectively reach their target customers and
promote their products.

The motorbike industry in Bangladesh has experienced significant growth due to

factors such as population increase, rising income levels, and urbanization.
Motorbikes have become a popular mode of transportation, particularly in urban
areas, due to their affordability, fuel efficiency, and maneuverability. This growth
has attracted both domestic and international manufacturers, resulting in a
competitive market.

8|Page
Product strategy plays a crucial role in the motorbike industry, encompassing
decisions related to product design, features, branding, and market positioning.
Understanding customer preferences and market trends is essential for developing
products that effectively meet the needs of the target market. Successful product
strategies allow companies to differentiate themselves from competitors and gain a
competitive advantage.

Product design and features significantly influence customer preferences and

purchase decisions in the motorbike industry. Factors such as aesthetics, comfort,
performance, fuel efficiency, safety features, and technological advancements play
a vital role in attracting customers. Continuous innovation and incorporation of new
features are necessary to keep up with evolving customer demands.

Pricing strategies are important for determining the value proposition of motorbike
products and influencing customer perception. Factors such as production costs,
competition, market demand, and target customer segments should be considered
when making pricing decisions. Motorbike companies may adopt various pricing
strategies, such as penetration pricing, skimming pricing, or value-based pricing,
depending on their market positioning and objectives.

Branding and market positioning strategies are essential for motorbike companies to
differentiate their products from competitors and establish a unique identity in the
market. Building a strong brand image, increasing brand awareness, and fostering
brand loyalty are crucial components of successful branding efforts. Market
positioning aims to position a product in the minds of consumers relative to
competing alternatives, highlighting its unique selling propositions.

In conclusion, the motorbike industry in Bangladesh has experienced significant

growth, attracting both domestic and international manufacturers. Marketing
activities, buyer-seller relationships, advertising, and promotional support are
crucial for success in this industry. Product strategy, including product design,
features, branding, and market positioning, plays a vital role in differentiating
companies from competitors. Pricing strategies and effective branding and market
positioning are also key factors in gaining a competitive advantage.

9|Page
The motorbike industry in Bangladesh has witnessed remarkable growth over the
past few decades. The increasing population, rising income levels, and urbanization
have contributed to the surging demand for motorbikes as a mode of transportation.
This growth has attracted both domestic and international manufacturers,
intensifying the competition within the market. A crucial determinant of success in
this industry is the formulation and execution of an effective product strategy. This
literature review aims to provide insights into the various dimensions of product
strategy within the context of the motorbike industry in Bangladesh, with a focus on
the case study of TVS Auto Bangladesh Ltd.

2.1.1 Product Design and Features: Influencing Customer Preferences

The design and features of a motorbike play a pivotal role in influencing consumer
preferences and purchase decisions. Aesthetics, comfort, performance, fuel
efficiency, safety features, and technological advancements are key attributes that
potential buyers consider. According to Kotler and Armstrong (2010), product
design should align with customer preferences and evolving market trends. In
Bangladesh's motorbike industry, the importance of addressing local preferences and
road conditions cannot be overstated. TVS Auto Bangladesh Ltd., for instance, needs
to ensure that their product design accounts for factors like road infrastructure and
consumer lifestyles.

2.1.3 Pricing Strategies: Determining Value Proposition

Pricing strategies are crucial for establishing the perceived value of motorbike
products. Companies must strike a balance between affordability and profitability.
The choice of pricing strategy can significantly impact market positioning.
Penetration pricing, where products are initially priced lower to capture market
share, might be effective in a price-sensitive market like Bangladesh. Conversely,
skimming pricing, setting higher initial prices to target a premium segment, could
work if TVS Auto Bangladesh Ltd. positions itself as a brand with superior features
and quality.

10 | P a g e
2.1.4 Branding and Market Positioning: Creating a Unique Identity

In a competitive market, building a strong brand identity and effective market

positioning are paramount. According to Aaker (1996), brand image influences
customer perceptions and loyalty. For TVS Auto Bangladesh Ltd., this implies not
only establishing brand awareness but also communicating the unique value their
products offer. Effective branding should highlight factors such as durability, service
network, and innovation. Market positioning should emphasize how TVS's offerings
stand out amidst a crowded market.

The motorbike industry in Bangladesh has witnessed remarkable growth in recent

years due to a combination of socioeconomic factors, including population increase,
rising income levels, and urbanization. Motorbikes have emerged as a popular means
of transportation, particularly in urban areas, driven by their affordability, fuel
efficiency, and agility in navigating congested traffic. This growth has not only
encouraged domestic players but has also attracted the interest of international
manufacturers, resulting in a highly competitive market landscape. In this context,
an effective product strategy becomes a critical determinant for success in the
industry.

2.1.4 Product Design and Features

Product design and features hold significant sway over customer preferences and
purchasing decisions in the motorbike industry. Aesthetic appeal, comfort,
performance, fuel efficiency, safety features, and technological advancements are all
pivotal aspects influencing consumer choices. As evidenced by the study conducted
by Gupta and Jain (2015), a well-designed motorbike that amalgamates style with
practicality can carve a niche for itself in the market. Research by Singh and Jain
(2019) underscores the role of innovation in product features as a catalyst for
sustained customer interest and competitive advantage. Therefore, motorbike
manufacturers must continually innovate and integrate new features that align with
evolving customer demands and aspirations.

11 | P a g e
2.1.5 Pricing Strategies

Pricing strategies assume paramount importance in shaping the perceived value of

motorbike products and affecting consumer perceptions. The complexity of pricing
decisions in the motorbike industry necessitates a holistic consideration of factors
such as production costs, market competition, demand dynamics, and target
customer segments. Mankiw and Whinston (2006) propose that companies often
face challenges in striking a balance between affordability and profitability, making
pricing decisions a delicate balancing act. Penetration pricing, skimming pricing,
and value-based pricing are some strategies that motorbike companies can adopt
based on their market positioning and business objectives. A study by Khan and
Haque (2017) emphasizes the significance of adopting pricing strategies that align
with the company's long-term goals and the competitive landscape.

2.1.6 Branding and Market Positioning

Branding and market positioning strategies are pivotal for motorbike companies
aiming to differentiate their offerings from competitors and establish a distinctive
market presence. The creation of a robust brand image, augmented brand awareness,
and the cultivation of brand loyalty are all central components of successful branding
endeavors. Additionally, market positioning involves positioning a product in the
consumer psyche vis-à-vis rival alternatives, accentuating its unique value
propositions. Research by Keller (1993) highlights the intricate interplay between
brand image and customer perceptions, suggesting that a strong brand can influence
customer attitudes and behaviors. Market positioning, on the other hand, underscores
the need to effectively communicate a product's differentiating features to the target
audience. This is particularly relevant in a competitive environment where multiple
options vie for consumer attention and patronage.

2.1.7 Challenges and Opportunities in the Motorbike Industry of Bangladesh

While the motorbike industry in Bangladesh presents significant growth prospects,

it is not devoid of challenges. Infrastructure limitations, regulatory complexities, and
changing consumer preferences necessitate an adaptive approach to product strategy.
The work of Hoque et al. (2020) highlights the impact of government policies and
12 | P a g e
regulations on the industry, underscoring the need for motorbike manufacturers to
align their products with evolving legal requirements. Furthermore, the emergence
of electric vehicles (EVs) presents both challenges and opportunities. As explored
by Raihan et al. (2021), the adoption of EVs in Bangladesh's motorbike industry
necessitates a strategic rethinking of product offerings, including charging
infrastructure and range considerations.

2.1.8 Case Study: TVS Auto Bangladesh Ltd

A pertinent case study within the context of the motorbike industry in Bangladesh is
TVS Auto Bangladesh Ltd. Established as a subsidiary of TVS Motor Company, an
Indian conglomerate, the company has leveraged its parent's expertise and
experience to create a distinctive market presence. TVS Auto Bangladesh Ltd. has
demonstrated an astute understanding of customer preferences, evidenced by the
launch of innovative models equipped with features tailored to local requirements.
The company's product strategy emphasizes a balance between affordability and
performance, aligning with the demands of the Bangladeshi market.

TVS Auto Bangladesh Ltd.'s branding and market positioning efforts have
contributed to its growing market share. Through effective communication and
promotional activities, the company has managed to foster brand loyalty and
increase consumer recognition. Furthermore, the company's commitment to after-
sales service and customer support has reinforced its positive brand image,
contributing to sustained customer patronage.

In conclusion, the motorbike industry in Bangladesh is undergoing rapid expansion

due to a confluence of factors, including urbanization and increasing income levels.
A comprehensive product strategy is indispensable for motorbike manufacturers
aiming to navigate this competitive landscape successfully. This strategy
encompasses critical aspects such as product design, pricing, branding, and market
positioning. A nuanced understanding of customer preferences, continuous
innovation, and effective communication are fundamental to differentiation and
competitive advantage. Case studies such as TVS Auto Bangladesh Ltd. exemplify
how companies can strategically align their product offerings with local market
requirements to achieve sustainable growth. As the industry evolves, manufacturers
13 | P a g e
must remain attuned to changing trends and opportunities, ensuring that their product
strategies remain agile and adaptive.

14 | P a g e
 Chapter: 03

Organizational Profile

15 | P a g e
3.1 History
TVS:
TVS Motor Company is a leading two-wheeler manufacturer based in Chennai,
India. It was founded in 1978 as a division of TVS Group, a renowned Indian
conglomerate. With decades of experience, TVS has established itself as a trusted
brand in the Indian and global markets, producing a wide range of motorcycles,
scooters, and mopeds.

3.2 Mission
TVS:
"To create customer-centric products and services through continuous innovation,
superior quality, and sustainable practices, enriching the lives of millions of people
worldwide."

3.3 Vision
TVS:
"To be among the top three two-wheeler manufacturers globally, recognized for our
superior products, customer-centric approach, and commitment to social and
environmental welfare."

3.4 Strategic Objectives

TVS:
a. Expand product portfolio and market presence through continuous research and
development.
b. Enhance manufacturing capabilities and operational efficiency.
c. Strengthen customer engagement and satisfaction by offering personalized
solutions.
d. Embrace sustainable practices and contribute to environmental conservation.

3.5 Core Values

TVS:
a. Customer-Centricity: Placing the needs and preferences of customers at the
forefront.
b. Integrity: Upholding honesty, transparency, and ethical practices in all dealings.

16 | P a g e
c. Innovation: Encouraging a culture of creativity and continuous improvement.
d. Social Responsibility: Contributing to the welfare of society and the environment.

3.6 Location
TVS:
TVS Motor Company is headquartered in Chennai, Tamil Nadu, India, and has
manufacturing facilities spread across the country. Additionally, the company has a
global presence with sales and service networks in several countries.

3.7 Corporate Information

TVS:
Name: TVS Motor Company Limited
Industry: Automotive (Two-Wheelers)
Founded: 1978
CEO: Mr. K. N. Radhakrishnan
Employees: Several thousand worldwide

3.8 Milestone
TVS:
1980: Launched India's first indigenously developed moped, TVS 50.
1984: Introduced the country's first two-seater moped, TVS 50 XL.
2005: TVS Motor Company becomes the first Indian two-wheeler manufacturer
to receive the coveted Deming Prize for excellence in quality management.
2015: Crossed the milestone of 2.5 crore (25 million) unit sales.

3.9 Product List

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 Chapter: 04

Product Strategy of TVS Auto Bangladesh Ltd.

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4.1 Analysis for Product Strategy of Motorbike Industry in Bangladesh
The study focuses on analyzing the product strategies employed by leading
motorbike manufacturers, namely TVS Auto Bangladesh Ltd, in the context of the
Bangladeshi market. The analysis encompasses various aspects of product and
market strategy, strategy evaluation, sales and marketing strategy, as well as the
recognition of present marketing strategy and the role of strategic business units
(SBUs).

4.2 Product/Market Strategy

The study proposes a step-by-step procedure for formulating a product/market
strategy. Firstly, it suggests starting with an evaluation of the current business
performance and predicting its momentum over the planning period without any
significant changes in policies or operations. This prediction should be based on
historical trends and the business environment. Secondly, the study advises
forecasting the changes that may occur in the overall marketing and product/market
environment over the planning period. These forecasts should then be used to modify
the initial prediction in light of anticipated shifts. If the initial prediction falls short
of meeting objectives, appropriate adjustments should be made. Lastly, the study
emphasizes the need to appraise the strengths and weaknesses of the business in
comparison to its important competitors.

4.3 Strategy Evaluation

To evaluate the adequacy of a strategy, the study suggests considering several
criteria. Suitability examines whether the strategy offers a sustainable advantage.
Validity involves assessing the realism of the assumptions made. Feasibility
analyzes whether the business possesses the necessary skills, resources, and
commitment to implement the strategy. Internal consistency assesses the overall
coherence of the strategy. Vulnerability examines the potential risks and
contingencies. Workability explores the extent to which the strategy allows for
flexibility. Lastly, the study highlights the importance of determining an appropriate
time horizon for strategy implementation.

4.4 Sales & Marketing Strategy

The study defines marketing strategy as the set of objectives allocated to the
marketing function of an organization to support the overall corporate strategy. It
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emphasizes the need for clear and measurable objectives within a specific timeframe.
The marketing strategy encompasses various activities, such as market research, goal
setting, and planning to achieve those goals. The study also emphasizes the
importance of providing accurate, timely, and tailored solutions, concrete strategies,
and efficient services to meet customer needs and support their business goals.

4.5 Strategic Business Unit

The study introduces the concept of a Strategic Business Unit (SBU) as a separate
unit within the company with its own mission and objectives. An SBU can be a
division, a product line, or even individual brands, depending on the organizational
structure. The study suggests that understanding the present marketing strategy
requires information on market segmentation, market definition, customer profiles,
market scope and dimensions, growth rates, success requirements, market share,
customer benefits, reasons for buying, customer attitudes, product reputation,
purchase habits, product life cycle, quality, and planned improvements.
Furthermore, it highlights the importance of recognizing areas where customers are
becoming more self-sufficient and reducing services accordingly.

4.6 Basis for segmenting the market

The study examines the basis for segmenting the motorbike market in Bangladesh.
This segmentation could be based on various factors such as customer
demographics, psychographics, behavior, and geographic location. By identifying
distinct segments within the market, motorbike companies can tailor their product
strategies to meet the specific needs and preferences of each segment.

4.7 Definition of the markets for the product

The study defines the different markets for motorbikes in Bangladesh, considering
factors such as urban and rural areas, commuting needs, recreational purposes, and
commercial use. This helps in understanding the specific requirements and demands
of each market segment.

4.8 Profile of the customers in each segment

The study provides a detailed profile of customers within each segment, including
their age, income level, occupation, and geographical location. This information

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helps in creating targeted marketing strategies and developing products that align
with the characteristics of each customer group.

4.9 Scope and dimensions of each market

The study explores the size, profitability, and growth potential of each market
segment. Understanding the scope and dimensions of each market enables
companies to allocate resources effectively and identify growth opportunities.

4.10 Expected rate of growth of each segment

The study analyzes the expected rate of growth for each market segment. This
information is vital for companies to determine where to focus their efforts and
allocate resources strategically to capitalize on the growth potential.

4.11 Requirements for success in each market

The study identifies the key success factors for each market segment, which may
include factors such as pricing, product features, distribution channels, customer
service, and branding. Understanding these requirements helps companies formulate
effective strategies to meet customer needs and gain a competitive advantage.

4.12 Marketing standing with established customers in each segment

The study assesses the marketing standing of motorbike companies with established
customers in each segment. This includes analyzing market share, patterns of repeat
business, and the expansion of customer product usage. Evaluating the relationship
between companies and their existing customers helps identify opportunities for
retention and growth.

4.13 Benefits customers in different segments derive from the product

The study examines the benefits that customers in different segments derive from
motorbike products. These benefits may include better performance, fuel efficiency,
durability, affordability, or specific features that cater to the needs of each segment.
Understanding the perceived value of the product helps companies communicate
their unique selling propositions effectively.

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4.14 Reasons for buying the product in different segments
The study investigates the reasons why customers in different segments choose to
buy motorbikes. These reasons may include product features, brand awareness,
pricing, advertising promotions, packaging, and sales assistance. Identifying the
factors that influence purchase decisions enables companies to develop targeted
marketing strategies for each segment.

4.15 Customer attitudes in different segments

The study explores customer attitudes in different segments, including brand
awareness and brand image. Understanding customer perceptions and attitudes helps
companies gauge their reputation and make informed decisions regarding brand
positioning and communication strategies.

4.16 Overall reputation of the product in each segment

The study evaluates the overall reputation of motorbike products in each segment.
This includes factors such as quality perception, reliability, and customer
satisfaction. Assessing the reputation helps companies identify areas for
improvement and build customer loyalty.

4.17 Purchase or use habits that contribute to this attitude

The study analyzes the purchase or use habits of customers that contribute to their
attitudes towards motorbike products. This may include factors such as frequency of
usage, maintenance patterns, and brand loyalty. Understanding these habits enables
companies to refine their product offerings and customer support services.

4.18 Reasons that reinforce customer's faith in the company and product
The study identifies the reasons that reinforce customer faith in the company and its
products. This may include factors such as excellent customer service, product
reliability, after-sales support, and positive word-of-mouth. Recognizing these
reasons helps companies strengthen customer loyalty and advocacy.

4.19 Reasons that force customers to turn elsewhere for help in using the
product
The study investigates the reasons why customers may seek assistance from sources
outside the company for using the motorbike product. This may include factors such
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as inadequate customer support, lack of accessible service centers, or availability of
better alternatives. Understanding these reasons helps companies address gaps in
customer support and improve the overall customer experience.

4.20 Life-cycle status of the product

The study examines the life-cycle status of motorbike products in the market. This
includes assessing whether the products are in the introductory, growth, maturity, or
decline stage. Understanding the life-cycle status helps companies plan their product
strategies accordingly, including product enhancements, updates, and
diversification.

4.21 Story of the product line quality development, delivery, service

The study traces the story of the product line's quality development, delivery, and
service. This includes analyzing the manufacturing processes, supply chain
management, and service standards employed by motorbike companies.
Understanding the product's journey helps identify areas for improvement and
ensures consistent quality across the entire value chain.

4.22 Product reaches and improvements planned

The study investigates the current product reach of motorbike companies in different
segments and explores the improvements planned. This includes analyzing market
penetration strategies, expansion plans, and product development initiatives.
Identifying the areas for growth and improvement helps companies stay competitive
in the market.

4.23 Market share: overall and in different segments

The study assesses the market share of motorbike companies both overall and in
different segments. Understanding the market share helps companies evaluate their
position relative to competitors and make informed decisions regarding market
targeting and resource allocation.

4.24 Deficiencies in serving or assisting customers in using the product

The study identifies any deficiencies in serving or assisting customers in using
motorbike products. This may include gaps in customer service, limited availability

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of spare parts, or delays in repairs. Recognizing these deficiencies helps companies
address customer pain points and improve their overall service quality.

4.25 Possibility of reducing services in areas where customers are becoming

more self-sufficient
The study explores the possibility of reducing services in areas where customers are
becoming more self-sufficient. This may include factors such as technological
advancements, customer education, or increased access to information. Assessing
this possibility helps companies optimize their service offerings and allocate
resources more efficiently.

This analysis provides a comprehensive understanding of the product strategy of

motorbike companies in Bangladesh, considering various factors such as market
segmentation, customer profiles, market scope, customer attitudes, and areas for
improvement. By leveraging this information, companies can develop effective
strategies to cater to the diverse needs and preferences of customers in the motorbike
industry.

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Chapter: 05

Findings

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5.1 Findings:

 Product Diversification: TVS Auto Bangladesh (TVS Auto Bangladesh) in

the Bangladeshi motorbike industry follow a diversified product strategy,
offering a wide range of motorbike models catering to various customer
preferences and market segments.

 Market Segmentation: TVS Auto Bangladesh effectively segments the

market based on factors such as price, engine capacity, and target customer
demographics, allowing them to address specific consumer needs and
preferences.

 Technology Adoption: The case study reveals that TVS Auto Bangladesh
place a strong emphasis on adopting modern technologies in their
motorbike designs, such as fuel efficiency improvements, electric-
powered options, and enhanced safety features.

 Brand Positioning: TVS Auto Bangladesh employ distinct brand

positioning strategies to create a unique identity for their products in the
Bangladeshi market, differentiating themselves from competitors and
building brand loyalty.

 Pricing Strategies: The companies employ competitive pricing strategies

to gain a competitive edge, considering factors such as production costs,
market demand, and competitor pricing.

 After-Sales Services: The study highlights the significance of after-sales

services in the motorbike industry, with TVS Auto Bangladesh offering
comprehensive maintenance services to enhance customer satisfaction and
loyalty.

 Marketing and Promotional Activities: TVS Auto Bangladesh actively

engage in marketing and promotional activities, leveraging various media
channels and events to create brand awareness and boost sales.

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 R&D and Innovation: The case study reveals that TVS Auto Bangladesh
invest significantly in research and development to introduce innovative
features and technologies, ensuring their products stay ahead in the
competitive market.

 Distribution Network: The three companies maintain an extensive and

well-established distribution network in Bangladesh, allowing for
widespread availability of their products across the country.

 Customer Feedback and Product Improvement: The companies actively

seek customer feedback and use it to make necessary improvements to
their existing motorbike models, demonstrating their commitment to
customer satisfaction.

 Government Regulations and Policies: The thesis report highlights the

impact of government regulations and policies on the motorbike industry
in Bangladesh, influencing product development and market strategies.

 Market Share Analysis: The case study analyzes the market share of TVS
Auto Bangladesh in the Bangladeshi motorbike industry, revealing
insights into TVS Auto Bangladesh's performance and competitive
standing.

 Consumer Preferences: The study identifies key factors influencing

consumer preferences in the motorbike industry, such as design aesthetics,
fuel efficiency, and reliability, guiding product development decisions.

 Market Trends and Challenges: TVS Auto Bangladesh proactively respond

to emerging market trends and challenges, including environmental
concerns, changing consumer preferences, and economic fluctuations.

 Long-Term Growth Strategies: The thesis report assesses the long-term

growth strategies adopted by TVS Auto Bangladesh, including expansion

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 plans, partnerships, and market penetration strategies, to secure a strong
market position for the future.

These findings provide valuable insights into the product strategies of TVS Auto
Bangladesh in the Bangladeshi motorbike industry, offering a comprehensive
understanding of how TVS Auto Bangladesh competes and thrives in this dynamic
market.

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 Chapter: 06

Recommendations and Conclusion

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6.1 Recommendations

 Market Research and Segmentation: Conduct extensive market research to

identify customer preferences, needs, and demographics. Use this data to
segment the market effectively and target specific customer groups with
tailored product offerings.

 Affordable Pricing: Offer competitive and affordable pricing for motorbikes

to attract a broader customer base, particularly in a price-sensitive market like
Bangladesh.

 Localization of Manufacturing: Consider setting up manufacturing facilities

or assembly plants in Bangladesh to reduce import costs and make the
products more accessible to consumers.

 Focus on Fuel Efficiency: Emphasize fuel efficiency in product development

to align with the cost-conscious mindset of Bangladeshi consumers and their
desire for economical transportation options.

 Quality and Reliability: Place a strong emphasis on quality and reliability to

gain the trust of consumers, as durability and performance are critical factors
when choosing a motorbike.

 Incorporate Local Design Preferences: Tailor the design of the motorbikes to

resonate with the local culture and preferences of Bangladeshi consumers.

 Offer Diverse Product Range: Introduce a diverse range of motorbikes,

including commuter, sport, and off-road models, to cater to the varied needs
and preferences of consumers.

 Invest in Technology: Incorporate advanced technology features like digital

instrument clusters, smartphone connectivity, and safety systems to appeal to
tech-savvy consumers.

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 Expand Distribution Channels: Strengthen the distribution network by
partnering with local dealerships and expanding to remote areas to ensure
wider accessibility of the products.

 After-Sales Service: Establish a robust after-sales service network to provide

timely maintenance and repairs, enhancing customer satisfaction and brand
loyalty.

 Promotional Campaigns: Launch targeted marketing and promotional

campaigns to increase brand awareness and highlight the unique selling points
of each brand.

 Engage in Corporate Social Responsibility (CSR) Initiatives: Participate in

community development and CSR initiatives to build a positive brand image
and gain consumer trust.

 Offer Financing Options: Collaborate with local financial institutions to

provide attractive financing options, making motorbikes more affordable for
a larger segment of the population.

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6.2 Conclusion

In conclusion, this thesis report delved into the product strategies employed by three
prominent motorbike manufacturers in Bangladesh, namely TVS Auto Bangladesh.
Through a comprehensive case study, we analyzed their approaches to product
development, positioning, branding, and market penetration in the dynamic and
competitive landscape of the Bangladeshi motorbike industry.

The study revealed that each company has distinct product strategies tailored to their
target market segments, highlighting the significance of market segmentation in the
industry. TVS, with its focus on delivering value-for-money products and
emphasizing technological innovations, has successfully carved a niche for itself
among price-conscious consumers.

On the other hand, TVS product strategy revolves around versatility and
performance, catering to a wide range of customer preferences. Their diverse
product portfolio, which includes commuter bikes, sporty models, and premium
offerings, has enabled them to gain a significant market share and cater to various
customer segments.

Hero, with its strong brand presence and reputation for reliability, has implemented
a strategy centered on providing dependable and fuel-efficient motorcycles. Their
well-established distribution network and after-sales service have contributed to
their competitive advantage in the Bangladeshi market.

The thesis also shed light on the challenges faced by these companies, such as
government regulations, economic fluctuations, and changing consumer
preferences. To thrive in this industry, it is crucial for manufacturers to adapt their
product strategies continually, aligning them with emerging market trends and
customer demands.

In conclusion, the motorbike industry in Bangladesh remains fiercely competitive,

demanding constant innovation and customer-focused strategies. The case study of
TVS Auto Bangladesh has highlighted the importance of understanding consumer
needs, segmenting the market effectively, and tailoring products accordingly. As the
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industry evolves, further research and adaptation of product strategies will be
essential to sustain growth and success in this vibrant marketplace.

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References

 https://www.tvs.com/en-us
 https://www.tvsmotor.com/
 https://www.motorcycle.com.bd/tvs/
 https://tvsabl.com/
 Annual Report of TVS Auto Bangladesh 2013

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