A

SUMMER TRAINING PROJECT REPORT

ON

MARKETING STRATEGIES OF TVS BIKES

Submitted to the partial fulfillment of the requirement for

the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY,
LUCKNOW (2021-2023)

UNDER GUIDANCE OF: SUBMITTED BY:

Proff. SARTHAK TYAGI Nitesh
Sharma MBA
III SEM
Roll No: 2102310700045

R.D. ENGINEERING COLLEGE DUHAI GHAZIABAD

(Affiliated to AKTU and Approved by AICTE)

1
 CERTIFICATE

This is to certify that Nitesh Sharma has done his summer training project report on

“MARKETING STRTEGIES OF TVS BIKES.” under the guidance of Proff SARTHAK

TYAGI as a part of MBA course during MBA III semester.

Nitesh Sharma
MBA III SEM
Roll NO. 2102310700045

2
 DECLARATION

I Nitesh Sharma declare that the survey, data collection and analysis work related to

Dissertation of “MARKETING STRTEGIES OF TVS BIKES. Has been carried out

exclusively on my efforts under the guidance of ASST PROF: SARTHAK TYAGI

I, further declare that this was neither published nor submitted to any other institution for award

of any other degree or diploma.

Nitesh Sharma
MBA III SEM
Roll NO. 2102310700045

3
 ACKNOWLEDGEMENT

The satisfaction euphoria that accompanies the successful completion of any work would be

incomplete unless we mention the name of the person, who made it possible, whose constant

guidance and encouragement served as a beckon of light and crowned our efforts with success. I

consider it a privilege to express through the pages of this report, a few words of gratitude and

respect who guided and inspired in the completion of this project.

I am deeply indebted to the contribution offered by Asst. Proff. SARTHAK TYAGI (Faculty

of management) who helped me throughout the project.

Nitesh Sharma
MBA III SEM
Roll NO. 2102310700045

4
 EXECUTIVE SUMMARY

Ever since man evolved into social animal he felt the need for “Transportation.” As he formed a

civilization he felt the need for “Better Transportation.” Today on the threshold of exploring the

universe he feels the need for “Best Transportation.”

Truly the modern world relies on transport which can be airways, roadways, railways and on

water. Bicycle was the most important part of road transportation in early days and as the

scenario changed bicycle was transformed into a fast, stylish and trendy mode of transport

known as Motorcycle, now-a-days known as Motorbike.

The topic of the project is “Marketing Strategies adopted by TVS Motors” TVS Motor

Company is one of the leading bike manufacturers in India. For the study, secondary data is

collected from business newspaper, magazines, company brochures, journals and the Internet.

The major conclusion from this study was that TVS has to improve itself to gain the first position

in the market as it is doing well to maintain its third position in the market.

In terms of competition, TVS has nick-to-nick competition with Hero Honda and Bajaj. TVS has

a lot of work to do if it has to take lead and remain the leading manufacturer in India. This report

incorporates sincere efforts to submit the best possible dossier on the topic assigned because no

study can be perfect. There are bound to be limitations that I faced and within which I had to

work.

5
 TABLE OF CONTENTS

PARTICULARS PAGE

NO.

1. INRODUCTION 7-92

2. OBJECTIVE OF STUDY 93

3. SCOPE OF THE STUDY 94

4. LITERATURE REVIEW 95-96

5. IMPORTANCE OF THE STUDY 97-98

6. RESEARCH METHADOLOGY 99-106

7. ANALYSIS OF DATA COLLECTED 107-119

9. FINDINGS 120

10. LIMITATIONS 121

11. CONCLUSIONS 122

12. RECOMMENDATIONS 123

12. BIBLIOGRAPHY 124

13. ANNEXURE (III)

6
 INTRODUCTION

AUTOMOBIE INDUSTRY

INDIAN AUTOMOBILE INDUSTRY A REVIEW:

The Indian automobile industry is too very Large extent, dominated by the four wheeler sector-

comprising 12 in manufactures (at present).the passenger can senior mostly dominated b four

companies namely TVS. Tata, Ashok, and Mahendra among which TVS is in the lead, with a

market share of nearly 75 percent. The growth in the Heavy vehicle sector has been to the extent

of 20 percent during the last year, which was in continuum from its previous year. Thus leaving

the Indian roads with almost 35-4O percent more four-wheeler vehicles within a span of 2 year .

Flee expects the Heavy vehicle production to rise to 520.00 (1 units by the year 2000 and to

750,000 units by 2005.

The two-three wheeler sector comprises of over 13 manufacturers with installed capacity of

about 3,544,000 units and Bajaj Auto dominating the market with a share of about 48 percent. As

with the rest of the automobile industry, the two and the three wheelers sector have been

notching up excellent results. NO with the easy availability of finance and a spurt in demand as

there is a growing need for personal transport, the stage is set for four wheeler .

Manufactures to cash in on the expending demand in the current financial year there has been

unprecedented growth of 22 present over the previous year. Further. This trend is expected I

continues at 15 percent over the next two year with more emphasis being put on the low cc (50-

100) two wheelers, the market is becoming more and more crowded with stiff competition

between Eicher, Tata and TVS. Company are coming up with new ranges more frequently than

7
in the previous years. A Rs. 250 crore expansion plan is on the anvil with ten new scooter models

slated to he launched in the next three years. In the heavy vehicles segment a hoot race is being

contested between Eicher , Tata and TVS. The three wheeler sector too has been remarkable

recovery in the past 2-3 years to the extent of recording a 57 percent growth with total sales of 1

13.704 units in 1994-95.

The market in this segment is being led by TVS in a nearly monopolistic environment with a

market share of 90 percent. However the growth in the coming years is expected to stabilize at

around 15 percent. The heavy vehicle is being recognized as Ashok Nangia economical, cost

effective and convenient mode of transport, when compared not only with taxis and Mini trucks

but even with public transport, for short distances.

The heavy, medium and light commercial vehicles (HCV/MCV/LCV) sectors comprise TELCO

and Bajaj Tempo. The record for this sector are similar to the Heavy vehicle sector. With Ashok

Nangia average figure of 20 percent, the HCVs and MCVs outpaced the growth of the LCVs at

comparative levels of 94,000 and 87,000 units respectively. The new infrastructural projects,

additional capacities in steel and cement plans, prospective privatization of public transport arc

expected to spur demand for the HCVs. The scales are increasingly tilting in favors of HCVs

from HCVs clue to benefits like lower transportation costs per ton. Better Maneuverability and

improved customer goods transportation. In the MCV segment, TELCO holding a 66 percent

market share is best geared to meet the growing demand with its plans to increase capacities.

Ashok Leyland too is doing well in the MCV segment. In the LCV segment, the total sales

amounted to 82.353 units where TELCO’s market share is 52 percent. However, HCVs made

8
with Japanese collaboration are under immense pressure because of the escalation in the yen and

countervailing duties imposed on imported components on the whole. This sector of the industry

has been consolidating its position in the few years.

GROWTH PROSPECTS OF THE AUTOMOBILE

INDUSTRY

The Indian economy is now at a take-off stage and is taking rapid strides towards high quality

goods needed to meet intense global competition. The growth of the Indian automobile industry

in the next 5-10 years is expected to be exponential. Major growth has been forecast in all sectors

of this industry.

The optimism has been triggered off by the deliquescing of the sector.

Aided by positive macro-economic factors in the economy as a whole, growth rates of 15 percent

in the two/wheelers and twelve percent in the four wheeler sector are expected by the turn of this

century.

The Heavy vehicle market is expected to dominate the Indian automobile industry in the years to

come while India moves towards attaining the status of a developed country. The demand for the

Heavy vehicle at the point of its entrance into the market will dominate the future outlook.

Customers are expected to move up from scooters and motorcycles to passenger Heavy vehicles.

Passenger’s Heavy vehicle sales. on the whole, are expected to increase from 183.000 units in

1994 to 432,000 units by 2000 and 611,000 by 2005. It is a known fact that already has n

significant position ‘in world terms’ as a heavy truck producer. Whole production is expected to

9
grow from 70,000 units in 1994 to 1.22 lakhs units by 2005 with participation from TELCO and

Ashok Leyland. Resides, India is one of’ the largest producers of’ motorcycles whole production

is expected to grow by 250% to 5.4 million units by 2005. Amidst this entire boom, the only

exception is the jeep. At the level of 50,900 sales of jeeps for the previous years have virtually

defied the industry-wide growth, growing just above 2.9 percent in the last year. With only 10-15

percent being sold to individuals, the bulk of the buying is by the government and other

institution which are facing resource crunch. So, the only source for growth can be exports.

10
 EMERGING TRENDS IN THE AUTOMOBILE INDUSTRY

Things have been consistently changing over the past few years in this industry, several world

brands. Which one saw only in glossy magazines or on the TV in the past are making a beeling

to enter to enter the country. Many of the current collaborators have a majority share holding in

the collaborations. Collaborators are willing to hold the hands of the Indian manufacturers in the

export markets. In fact, the focus of the new generation of collaborations is to build

technological capabilities in the Indian automobile industry.

In 1993 the worlds largest Heavy vehicle market, Genera) Motors, signed up with Hindustan

Motors for assembling one of its German products-the Opel Astra. French giant Peugeot has

joined hands with Premier Automobiles to make Peugeot 309 and Britain’s Heavy vehicle major

Rover has tied up with Bangalore-based small-timer Spain Automobiles, to assemble the Rover

Montego. Mahindra and Mahindra have embarked upon the process of’ assembling Chrysler’s

Jeep Cherokee, using its new Peugeot engine and gear box, ‘TELCO has finally signed up with

Dailmer-Benz for manufacture of the Mercedes-Benz. DCM has tied up with the emerging South

Korean Heavy vehicle maker, Daewoo. All this is not surprising, considering the fact that the

Heavy vehicle manufacturing sector – one of the last to bre decanted in in June. 1993 –has

recorded a growth of 29 percent during that financial year.

11
 INTRODUCTION

In the first nine months of this financial year (2007-06), the domestic heavy vehicle industry

grew by 5.3 per cent. This has come on the back of 27 per cent growth in 2003-04 and 17 per

cent in 2004-05, Clearly , while the industry continues to show growth on a high base, the

momentum has slowed this year.

Within the industry, the compact Heavy vehicle (or A2) segment has been the key growth driver,

having grown by 16 per cent. The upper segments of the Heavy vehicle market have shown

dismal performance; with the A4-A6 segments combined registering a drop of 8 per cent over

last year.

As a result, the compact Heavy vehicle segment, which constituted 56 per cent of the heavy

vehicle market during April-December 2004-05, has increased its share to 61 per cent in 2007-

06. If we also include the A1segment (Maruti 800) and Omni, then compact Heavy vehicles

constitute more than 75 per cent of the Indian market. More than a decade after the Heavy

vehicle industry was opened up to global players, India's Heavy vehicle market remains

essentially one of sub-Rs 4 lacks Heavy vehicles.

Unfortunately, the diesel Heavy vehicle segment, which has shown strong growth in recent years

and currently makes up almost 20 per cent of the domestic Heavy vehicle market. has also seen a

reversal this year and dropped 4 per cent over last year.

12
 FAVORABLE FACTORS

Despite the deceleration in recent months, there is optimism about the medium to long-term

prospects of the heavy vehicle industry. The macro indicators are favorable.

Globally, it has been observed that a boom in the Heavy vehicle industry is accompanied by four

major growth drivers. First is economic growth. Second, falling interest rates and easy

availability of finance. Development of road infrastructure is another major growth driver.

Finally, a reduction in taxes sets the pace for the Heavy vehicle industry.

All these growth drivers are currently coinciding in India. The economy is growing at 7 per cent

plus and is widely expected to maintain this growth rate in the medium term. Interest rates are far

lower than three years ago, even as finance reaches deeper into the country. Successive

governments have been focusing on road infrastructure. Besides, excise and customs duties are

on a downward trend.

The Heavy vehicle industry has to make the most of this positive macro-economic environment

by not only introducing new models, but also through better service levels, superior quality,

lower cost of ownership and by addressing other specific needs and concerns of the Indian

customer.

Heavy vehicle buyers are broadly classified into three categories: "first time buyers" who are

normally buying an entry level Heavy vehicle, upgrades who are replacing their existing Heavy

13
vehicles with a new one and finally, those who are buying an additional Heavy vehicle for the

family. Heavy vehicle companies have to calibrate their strategies to address each of these

segments.

D& E Segment Heavy vehicles in India

These two segments, representing premium and super luxury Heavy vehicles such as the Skoda

Octavia, TVS Sonata, the new Honda Accord, Ford Monde and the luxury brand Mercedes

Benz's E-class, have had to face competition from the Opel Vector, Toyota Camry and the

Toyota Corolla.

14
 CONCEPTUAL FRAMEWORK

Buyer behavior in the heavy vehicle market

The purpose of this chapter is to gain a better understanding of factors that influence customer

buying behavior in Heavy vehicles. Specifically, we considered a number of internal factors that

influence customer behavior including perception, motivation and learning. I also examined how

a customer’s attitude, which is a lasting evaluation of a person, object, or issue, can affect what

they buy.

I reviewed other factors that influence customer purchasing decisions and buying behavior

including personal, social, and situational issues. The personal influences on customers are

important determinants of their needs and wants. Such factors as age, income, family status, and

chosen lifestyle are strongly related to the types of products people buy and the specific brands

they select.

I examined the stages of the customer decision-making process for buying a Heavy vehicle:

problem recognition, information search, evaluation of alternatives between different brands of

Heavy vehicles, product choice and post purchase evaluation with respect to after sales service,

customer relationship, and resale value of the Heavy vehicle. I also addressed the impact of the

amount of effort expended and of perceived risk; factors associated with relative importance and

perceived consequences of the purchase, from the customer’s perspective.

15
 HISTORY OF AUTOMOBILE INDUSTRY

The automobile as we know it was not invented in a single day by a single inventor. The history

of the automobile reflects an evolution that took place worldwide. It is estimated that over

100,000 patents created the modern automobile. However, we can point to the many firsts that

occurred along the way. Starting with the first theoretical plans for a motor vehicle that had been

drawn up by both Leonardo da Vinci and Isaac Newton.

In 1769, the very first self-propelled road vehicle was a military tractor invented by French

engineer and mechanic, Nicolas Joseph Cugnot (1725 - 1804). Cugnot used a steam engine to

power his vehicle, built under his instructions at the Paris Arsenal by mechanic Brazen. It was

used by the French Army to haul artillery at a whopping speed of 2 1/2 mph on only three

wheels. The vehicle had to stop every ten to fifteen minutes to build up steam power. The steam

engine and boiler were separate from the rest of the vehicle and placed in the front (see

engraving above). The following year (1770), Cugnot built a steam-powered tricycle that carried

four passengers.

In 1771, Cugnot drove one of his road vehicles into a stone wall, making Cugnot the first

person to get into a motor vehicle accident. This was the beginning of bad luck for the inventor.

After one of Cugnot's patrons died and the other was exiled, the money for Cugnot's road vehicle

experiments ended.

Steam engines powered cars by burning fuel that heated water in a boiler, creating steam

that expanded and pushed pistons that turned the crankshaft, which then turned the wheels.

During the early history of self-propelled vehicles - both road and vehicles were being developed

16
with steam engines. (Cugnot also designed two steam locomotives with engines that never

worked well.) Steam engines added so much weight to a vehicle that they proved a poor design

for road vehicles; however, steam engines were very successfully used in locomotives.

Historians, who accept that early steam-powered road vehicles were automobiles, feel that

Nicolas Cugnot was the inventor of the first automobile.

The automotive industry has certain trends it has to follow, just like fashion designers and

musical composers. In times of recession and decreasing sales there is less room to take chances

and manufacturers are prone to follow the common pattern as a safer bet rather than releasing a

controversial product or idea that might or might not be successful. However throughout the

automotive industry's history, great innovators have "boldly gone where no man has gone

before" to set new trends which have dynamically altered the industry as a whole.

1880's & early 1900's

 About hundred years ago -The first motor car was imported

-Import duty on vehicles was introduced.

-Indian Great Royal Road (Predecessor of the Grand Trunk Road) was conceived.

 First car brought in India by a princely ruler in 1898.

 Simpson & Co established in 1840.

-They were the first to build a steam car and a steam bus, to attempt motor car

manufacture, to build and operate petrol driven passenger service and to import American

Chassis in India.

 Railways first came to India in 1850's

17
 In 1865 Col. Rookes Crompton introduced public transport wagons strapped to and

pulled by imported steam road rollers called streamers. The maximum speed of these

buses was 33 kms/hr.

 From 1888 Motors Spirit attracted a substantial import duty.

 In 1919 at the end of the war, a large number of military vehicles came on the roads.

 In 1928 assembly of CKD Trucks and Cars was started by the wholly owned Indian

subsidiary of American General Motors in Bombay and in 1930-31 by Canadian Ford

Motors in Madras, Bombay and Calcutta In 1935 the proposals of Sir M Visvesvaraya to

set up an Automobile Industry were disallowed.

 1942 Hindustan Motors Ltd incorporated and their first vehicle was made in 1950.

 In 1944 Premier Automobiles Ltd incorporated and in 1947 their first vehicle was

produced.

 In 1947 the Government of Bombay accepted a scheme of Bajaj Auto to replace the cycle

rickshaw by the auto and assembly started in a couple of years under a license from

Piaggio. Manufacturing Programme for the auto and scooter was submitted in 1953 to the

Tariff Commission and approved by the Government in 1959.

 In 1953 the Government decreed that only firms having a manufacturing programme

should be allowed to operate and mere assemblers of imported CKD units be asked to

terminate operations in three years.

 Only seven firms namely Hindustan Motors Limited, Automobile Products of India

Limited, Ashok Leyland Limited, Standard Motors Products of India Limited., Premier

Automobiles Limited, Mahindra & Mahindra and TELCO received approval. M&M was

manufacturing jeeps. Few more companies came up later.

18
 Government continued with its protectionism policies towards the industry.

 In 1956, Bajaj Tempo Ltd entered the Indian market with a programme of manufacturing

Commercial Vehicles, and Simpson for making engines.

1960's

 In sixties 2 and 3 Wheeler segment established a foothold in the industry.

 Escorts and Ideal Jawa entered the field in the beginning of sixties.

 Association of Indian Automobile Manufacturers formally established in 1960.

 Standard Motors Products of India Ltd. moved over to the manufacture of Light

Commercial Vehicles in 1965.

1970's

 Major factors affecting the industry's structure were the implementation of MRTP Act,

FERA and Oil Shocks of 1973 and 1979.

 During this decade there was not much change in the four wheeler industry except the

entry of Sipani Automobiles in the small car market.

 Oil Shock of 1973 quickened the process of dieselization of the Commercial Vehicle

segment.

 Three other companies, namely, Kirloskar Ghatge Patil Auto Ltd, Indian Automotive Ltd

and Sen & Pandit Engg products Ltd entered the market during 1971-75. They ultimately

withdrew in early eighties.

 During the seventies the economy was in bad shape. This and many specific problems

affected the Automobile Industry adversely.

19
1980's - The period of liberalized policy and intense competition

 First phase of liberalization announced.

 Unfair practices of monopoly, oligopoly etc slowly disappeared.

 Liberalization of the protectionism policies of the Government.

 Lots of new Foreign Collaborations came up in the eighties. Many companies went in for

Japanese collaborations.

 Hindustan Motors Ltd. in collaboration with Isuzu of Japan introduced the Isuzu truck in

early eighties.

 ALL entered into collaboration with Leyland Vehicles Ltd. for development of integral

buses and with Hino Motors of Japan for the manufacture of W Series of Engines.

 TELCO after the expiry of its contract with Daimler Benz, indigenously improved the

same Benz model and introduced it in the market.

 Government approved four new firms in the LCV market, namely, DCM, Eicher, Swaraj

and Allwyn. They had collaborations with Japanese companies namely, Toyota,

Mitsubishi, Mazda and Nissan respectively.

 In 1983 Maruti Udyog Ltd was started in collaboration with Suzuki, a Japanese firm.

 Other three Car manufacturers namely, Hindustan Motors Ltd., Premier Automobiles

Ltd., Standard Motor Production of India Ltd. also introduced new models in the market.

 At the time there were five Passenger Car manufacturers in India - Maruti Udyog Ltd.,

Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India

Ltd. and Sipani Automobiles.

 Ashok Leyland Ltd. and TELCO were strong players in the Commercial Vehicles sector.

20
 In 1983-84 Bajaj Tempo Ltd. entered into a collaboration with Daimler-Benz of Germany

for manufacture of LCVs.

 Important policy changes like relaxation in MRTP and FERA, delicensing of some

ancillary products, broad banding of the products, modifications in licensing policy,

concessions to private sector (both Indian and Foreign) and foreign collaboration policy

etc. resulted in higher growth / better performance of the industry than in the earlier

decades.

1990's

 Mass Emission Norms were introduced for in 1991 for Petrol Vehicles and in 1992 for

Diesel Vehicles.

 In 1991 new Industrial Policy was announced. It was the death of the License Raj and the

Automobile Industry was allowed to expand.

 Further tightening of Emission norms was done in 1996.

 In 1997 National Highway Policy has been announced which will have a positive impact

on the Automobile Industry.

 The Indian Automobile market in general and Passenger Cars in particular have

witnessed liberalisation. Many multinationals like Daewoo, Peugeot, General Motors,

Mercedes-Benz, Honda, Hyundai, Toyota, Volvo and Fiat entered the market.

 Various companies are coming up with state-of-art models of vehicles.

 TELCO has diversified in Passenger Car segment with Indica.

21
 Preview of Automobile Industry

The automobile industry, one of the core sectors, has undergone metamorphosis with the advent

of new business and manufacturing practices in the light of liberalization and globalization. The

sector seems to be optimistic of posting strong sales in the next couple of years in view of a

reasonable surge in demand.

The Indian automobile market is gearing towards having international standards to meet

the needs of the global automobile giants and become a global hub. Players are strategizing to

consolidate their position and gradually increase market penetration with the launch of new

models, targeting different segments. Since the sector is price driven, huge investment is

envisaged to remain competitive through cost advantage, for which indigenization is highly

important. The product becomes dearer if it is manufactured using imported parts. IT in the

automobile sector plays a crucial role.. Some players are working towards development of

efficient production systems that control the entire production process with high precision and

accuracy. Such systems working on real time operating systems allow efficient control of

different parts of manufacturing and production. It is essential to leverage skills of different

engineering disciplines to build these kinds of integrated systems.

Analysts foresee high scope in the electronics for auto sector and expect the retailing of

such electronics products to contribute a major chunk of future revenues. The government is

increasing the research and development (R&D) fund for the automobile industry over and above

the Rs 1400 crores earmarked for eight years. All laboratories in the country researching on

automobile technology, such as BHEL which is developing cell technology as alternative fuel,

have also been brought together through the setting up of a national R & D working group.

22
Indian automobile sector being a driver of product and process technologies, and has become a

excellent manufacturing base for global players, because of its high machine tool capabilities,

extremely capable component industry, most of the raw material locally produced, low cost

manufacturing base and highly skilled manpower Not only a large number of world

manufacturers have set up production bases in India but also a large number of foreign

companies are collaborating with the auto component suppliers and vendors.

Indian Automobile Components Industry has been making rapid strides towards

achievement of world-class Quality Systems by imbibing ISO 9000/QS 9000 Quality Systems

whereby the Indian Automotive industry has become more competitive in the export market due

to its technological and quality advances, so much so that in quality conscious markets such as

Europe and America, it is emerging as a major player, based on its performance. India today

exports: Engine and engine parts, electrical parts, drive transmission & steering pats, suspension

& braking parts among others.

The sector is striding inroads into the rural middle class after its inroads into the urban

markets and rural rich. It is trying to bring in varying products to suit requirements of different

class segments of customers.

States like Rajasthan, Uttar Pradesh, Maharashtra, Andhra Pradesh and West Bengal are

vying to woo global players with proposals including heavy tax exemptions and to create a more

investor friendly regime, each state is proposing to provide all regulatory clearances at express

speed.

23
 The Government should promote Research & Development in automotive industry by

strengthening the efforts of industry in this direction by providing suitable fiscal and financial

incentives.

The current policy allows Weighted Tax Deduction under I.T. Act, 1961 for sponsored

research and in-house R&D expenditure. This will be improved further for research and

development activities of vehicle and component manufacturers from the current level of 125%.

In addition, Vehicle manufacturers will also be considered for a rebate on the applicable

excise duty for every 1% of the gross turnover of the company expended during the year on

Research and Development carried either in-house under a distinct dedicated entity, faculty or

division within the company assessed as competent and qualified for the purpose or in any other

R&D institution in the country. This would include R & D leading to adoption of low emission

technologies and energy saving devices.

Government will encourage setting up of independent auto design firms by providing

them tax breaks, concessional duty on plant/equipment imports and granting automatic approval.

Allocations to automotive cess fund created for R&D of automotive industry shall be

increased and the scope of activities covered under it enlarged.

24
1:4 Automobile industry – Wheels of Change

India had its date with this wonderful vehicle first time in 1898. Then for the next fifty

years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile

industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and

Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000

mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing

the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant.

Hindustan Motors (HM), which started as a manufacturer of auto components graduated to

manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to

enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors

and the Fiat from Premier Auto Ltd. for many of the initial years.

In 1952, the GOI set up a tariff commission to devise regulations to develop an

indigenous automobile industry in the country. After the commission submitted its

recommendations, the GOI asked assembly plants, which did not have plans to set up

manufacturing facilities, to shut operations. As a result General Motors, Ford and other

assemblers closed operations in the country. The year was 1954 and this decision of the

government marked a turning point in the history of the Indian car industry. The GOI also had a

say in what type of vehicle each manufacturer should make. Therefore, each product was safely

cocooned in its own segment with no fears of any impending competition. Also, no new entrant

was allowed even though they had plans of a full-fledged manufacturing program. The restrictive

set of policies was chiefly aimed at building an indigenous auto industry. However, the

restrictions on foreign collaborations led to limitations on import of technology through technical

25
agreements. In the absence of adequate technology and purchasing power, the car industry grew

at a snail's pace in the 60’s. The demand for cars in 1960 was to the tune of 15,714. In the next

two decades the number increased to 30,989 i.e. a CAGR of only 3.5 per cent.

The other control imposed on carmakers related to production capacity and distribution.

The GOI control even extended to fixation of prices for cars and dealer commissions. This

triggered the start of a protracted legal battle in 1969 between some carmakers and GOI. Simply

put, the three decades following the establishment of the passenger car industry in India and

leading upto the early 1980s, proved to be the 'dark ages' for the consumer, as his choice

throughout this period was limited to two models viz. Ambassador and Padmini. It was only in

1985, after the entry of Maruti Udyog, that the car makers were given a free hand to fix the

prices of cars, thus, effectively abolishing all controls relating to the pricing of the end product.

In the early 80's, a series of liberal policy changes were announced marking another

turning point for the automobile industry. The GOI entered the car business, with a 74% stake in

Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of

the industry was changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint

venture with the Suzuki Corporation of Japan. Car sales grew by 42 per cent yoy in 1985 after

Maruti 800 was launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from

1981 to 1990.

In 1985, the GOI announced its famous broadbanding policy which gave new licenses to

broad groups of automotive products like two and four-wheeled vehicles. Though a liberal move,

the licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing

a complete facelift to the Indian car industry. The car was launched as a "people’s car" with a

26
price tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was well

accepted by middle income families in the country and its sales increased from 1,200 units in

FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down due to

rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'.

MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-

sized cars. The company has single handedly driven the sales of cars in the country cornering

around 79.6% market share. With increasing competition from new entrants, this market share

has plummeted to almost 62% in FY2000.

A brief 3-year downturn till 1993 and car sales bounced back to register a 17 per cent

growth rate in 1997.Since then, the economy slumped into recession and sales of cars remained

quite stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year

for the Auto industry with the economy looking up. The automobile industry, crossed the half

million mark for the first time in FY2000.

Overwhelmed by newer models from new and existing players had led to an impressive shift

from a constrained supply situation to a surplus one. Within the past decade, about 30 models

have entered the Indian market with a number of models still awaiting launch. The de-licensing

of auto industry in 1993 opened the gates to a virtual flood of international auto makers into the

country with an idea to tap the large population. Also the lifting of quantitative restrictions on

imports by the recent policy is expected to add up to the flurry of foreign cars in to the country.

The Indian Automobile industry registered one of the strongest growth rates in FY’04.

Aided by sustained economic recovery, the industry registered high growth rates in all major

segments.

27
The growth story was led by Medium and Heavy Commercial Vehicles (M&HCVs) registering a

40% growth while Light Commercial Vehicles (LCVs) recorded a 32% jump in total sales.

Passenger cars also registered an impressive 34% growth in FY’04 and total sales volume

crossed the 1 million mark for the first time. Interestingly, two wheelers registered the lowest but

healthy growth rate of 13% in FY’04. While motorcycle volumes tripped on a high base,

scooters registered a 10% growth after 4 years of continuous decline. Three wheelers grew by

23% in FY’04.

Apart from strong economic growth in all sectors, low interest rate regime, normal

monsoon, continued infrastructure investment, fiscal measures like cut in excise duty (in case of

cars), etc provided impetus for the growth. The year also saw a sharp 56% rise in export volumes

with all the sectors registering more than 40% growth, signalling the rising international

competitiveness of the industry.

Profitability improvements were recorded in companies across segments driven by rise in

volumes and lower interest costs to some extent, notwithstanding the rise in prices of certain

inputs like steel.

Though the peak customs duty had been reduced to 20% in January 2004 and Special

Additional Duty was abolished, the domestic industry still enjoys adequate protection, with no

import threats. The potential borne by the industry is well exhibited by the growing number of

international players setting up base in India and increasing

competitiveness in the industry.

28
 MARKET SHARE OF HEAVY VEHICLE

INDUSTRY

10%
30%
20%

40%

TVS Tata Mahendra Other

Kind of vehicle use :

10%
40%

35%

15%

Bikes Scooter Moped Others

29
 COMPANY HISTORY OF TVS

TVS was established by Thirukkurungudi Vengaram Sundaram Iyengar. He began with

Madurai's first bus service in 1911 and founded T.V.Sundaram Iyengar and Sons Limited, a

company that consolidated its presence in the transportation business with a large fleet of trucks

and buses under the name of Southern Roadways Limited. When he died in 1955 his sons took

the company ahead with several forays in the automobile sector, including finance, insurance,

manufacture of two-wheelers, tyres and components. The group has managed to run 33

companies that account for a combined turnover of nearly $3 billion.

Early years Sundaram Clayton, then the flagship company, was founded in 1962 in collaboration

with Clayton Dewandre Holdings, United Kingdom. It manufactured brakes, exhausts,

compressors and various other automotive parts. The company set up a plant at Hosur in 1978 to

manufacture mopeds as part of a new division.[ A technical collaboration with the Japanese auto

giant resulted in the joint-venture Ind Suzuki Limited in 1982 between Sundaram Clayton Ltd

and Suzuki Motor Corporation. Commercial production of motorcycles began in 1984.

Suzuki relationship

TVS and Suzuki shared a 19 year long relationship that was aimed at technology transfer to

enable design and manufacture of two-wheelers specifically for the Indian market. Rechristened

TVS-Suzuki, the company brought out several models such as the Suzuki Samurai, Suzuki

Shogun and Suzuki Fiero. Differences in opinion on how to run the join venture eventually led to

the partners going their separate ways in 2001 with the company being renamed TVS Motor,

30
relinquishing rights to use the Suzuki name. There was also a 30 month moratorium period

during which Suzuki promised not to enter the Indian market with competing two-wheelers. The

company also got over a period of labour unrest that required Chairman Venu Srinivasan to take

tough measures to resurrect a company that was in a state of turmoil. He would go on to invest in

new technology, nurture in-house design, and implement Toyota-style quality program segment.

Over the years TVS Motor has grown to be the largest in the group, both in terms of size and

turnover, with four state of the art manufacturing plants in Hosur, Mysore and Nalagarh in India

and Karawang in Indonesia. TVS Motor is credited with many innovations in the Indian

automobile industry, notable among them being the introduction of India's first two-seater

moped, the TVS 50cc. The company became the leader in its category of sub 100 cc mopeds,

having sold 7 million units. It also introduced the TVS Scooty, which is India's second largest

brand in the scooterette segment.The TVS Jive launched in November 2009 became India's first

clutch-free motorbike aimed at a stress-free rider experience while the unisex scooter TVS

Wego is targeted at urban couples, featuring body-balance technology for easier handling [ On 1

June 2012, TVS Motors reported a dip of 5% in its total sales for May 2012 In July 2012, TVS

Motors and BMW Motorrad were reported to be in talks for technology sharing. 0n 8 April 2013,

BMW Motorrad and TVS Motor Company signed a cooperation agreement with the aim to

develop and produce motorcycles in the segment below 500cc.

In July 2013, TVS Motor announced plans to construct a motorcycle assembly plant in Uganda

and to introduce two new models suited to the East African environment. The new plant is

expected to become operational in 2014.

31
Awards

TVS Motor won the Deming Application Prize in 2002

The same year, the work done for the TVS Victor motorcycle won TVS Motor the National

Award for successful commercialization of indigenous technology from the Technology

Development Board, Ministry of Science & Technology, Government of India.[14] In 2004, TVS

Scooty Pep won the 'Outstanding Design Excellence Award' from BusinessWorld magazine and

the National Institute of Design, Ahmedabad. The effective implementation of Total Productivity

Maintenance practices won TVS Motor the TPM Excellence Award given by the Japan Institute

of Plant Maintenance in 2008.

TVS Motor has won several management awards, notable among them being the Emerging

Corporate Giant in the Private Sector awarded by The Economic Times and the Harvard

Business School Association of India. Business Today magazine awarded TVS Motor the Best

Managed Company and the Most Investor Friendly Company awards. Its advertising practices

won it the Good Advertising award by Auto India Best Brand Awards 2009] Company Chairman

Venu Srinivasan is a recipient of several awards for corporate excellence such as the Star of Asia

Award by Bloomberg BusinessWeek[5] and the JRD Tata Corporate Leadership Award.The

University of Warwick, United Kingdom gave him an honorary Doctorate of Science degree[

while the Government of India honoured him with the Padma Shri, one of India's highest civilian

distinctions.

Innovative implementation of Information Technology has won TVS Motor the Ace Award for

Most Innovative NetWeaver Implementation in 2007 awarded by technology major SAP AG[and

32
the Team Tech 2007 Award of Excellence for Integrated use of Computer-aided engineering

Technologies

COMPANY PROFILE

Being the trading and distribution arm of the group, the business activities of TVS & Sons

include Dealerships for automobile vehicles, Distribution of spares for after-market, Sales &

service support for Garage Equipment, Sales & Service of Products for Special applications

like construction & Material handling and providing Customer Centric Services for Heavy

vehicle customer under the brand “My TVS".

TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-

art warehouses all over the country.

The Global business operation of the company includes managing Joint Ventures in Bangladesh,

Sri Lanka, Thailand, UK, USA & Europe for automobile distribution / dealership business,

Sourcing and Supply chain related activities. The company is also present in Africa through

Consultancy Services.

The customer centric MyTVS offers a TVSti-brand integrated service solution to Heavy vehicle

customers, founded on their full life cycle of Heavy vehicle owner- ship. A revolutionary

concept born with the new millennium focuses to fulfill the Heavy vehicle servicing, repairs,

body rework, on-road emergency service and buying- refurbishing-selling of pre-owned Heavy

vehicles, finance and insurance needs of the Heavy vehicle customers irrespective of the Heavy

33
vehicle brand. The business model of My TVS is based on the core strengths of TVS which are

“Relationship and Trust”, and present day requirement of “Customer Centricity”.

 MyTVS All Heavy vehicle Service - regular / periodical maintenance

 MyTVS 24x7 Emergency Services – emergency roadside assistance

 MyTVS Collision Repair Services - complete body rework

 MyTVS Quality Used Heavy vehicles – buying-refurbishing-selling of pre-owned

Heavy vehicles

The Company is the largest automobile spare parts distributor in India. The Company sells over

35,000 part numbers– manufactured by more than 80 suppliers and caters to 5,000 customers

across eleven states and has also markets TVS Quality branded products. Sophisticated

warehousing facilities with state of the art IT infrastructure enable smooth procurement &

deliveries.

TVS PartSmart is the recent initiative of the company. This concept envisages establishing a

franchise network across the country. These retail stores would be denoted as “TVSti Brand

Truck Parts Shop”. This unique business model gives a new dimension to the existing Auto

component retail sales. Only OE and Genuine replacement parts will be sold, with complete

transparency in pricing. The benefits will reach all end users. In the beginning, the company will

cater to the needs of the commercial vehicle customers. Later it will be expanded to cover

Heavy vehicles and two wheeler segments also.

34
PRODUCTS AND SERVICES

TVS America is in the business of sourcing high quality automobile / engineering products from

TS / QS / ISO certified suppliers located in India , China , Taiwan and Thailand for OE / Tier 1

& 2 customers in America . It takes Heavy vehiclee of the complete “Business Process

Outsourcing (BPO)” of customers by providing services like supplier identification, supplier

audit, inspection, sourcing, monitoring timely submission of samples & PPAP, offers tailor made

logistics solutions like JIT, VMI & line feeding, engineering support, vendor management, etc. A

true “end to end solution provider” with marketing office in Michigan and ISO 9001: 2000 TUV

Certified sourcing & back office in India .

TVS Autoserv a 51:49 joint venture between TVS Automotive Europe and Autoserv GmbH of

Germany with marketing office in Germany providing “end to end solutions” for all sourcing /

supply chain requirements of German customers with value added services like quality audits,

inspection, logistics support and warehouse facility to customers.

TVS Autoserv is in the business of sourcing high quality automobile / engineering products from

TS / QS / ISO certified suppliers located in India, China, Taiwan and Thailand for OE / Tier 1 &

2 customers in Europe. It takes Heavy vehicle of the complete “Business Process Outsourcing

(BPO)” of customers by providing services like supplier identification, supplier audit, inspection,

sourcing, monitoring timely submission of samples & PPAP, offers tailor made logistics

solutions like JIT, VMI & line feeding, engineering support, vendor management etc. A true

“end to end solution provider” with marketing office in Baden-Baden and ISO 9001: 2000 TUV

Certified sourcing & back office in India

35
The TVS Group is India's leading supplier of automotive components and one of the country's

most respected business conglomerates.

Originating as a transport company in 1911, it now comprises over 29 companies that operate in

diverse fields like automotive component manufacturing, automotive dealerships and electronics.

Underlying the success of the group is an ethos of commitment to the values of Quality, Service

and Reliability. Continuous innovation and close customer interaction have enabled the Group to

consolidate its position at the leading edge of the automotive industry.

36
 COMPANY FLASHBACK

TVS Motor Company Ltd. was established in 1911byT.V.SundaramIyengar in India. The TVS

group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of Chennai (formerly

Madras).

TVS Motor Company Limited is the flagship company of TVS Group, the USD 2.2 billion

group. The Group is the third largest two-wheeler manufacturer in India and globally among

the top ten, with an annual turnover of over USD 650 million.

Currently, the group has more than 30 companies and employees over 40,000 people worldwide.

With steady growth, expansion and diversification, it commands a strong presence in the

manufacturing of two-wheelers, auto components and computer peripherals. They also have

vibrant businesses in the distribution of heavy commercial vehicles (HCV) passenger cars,

finance and insurance.

1980 is the red letter year for TVS when India's first two-seater moped rolled out that redefined

the realm of personal transportation. In 1982, the company entered into a technical collaboration

with Suzuki Motor Corporation of Japan which helped the fledgling joint venture gain from the

expertise of a global two-wheeler giant like Suzuki. In 2000, the TVS group and Suzuki Motor

Corporation parted ways from their joint venture with the former buying out the 25.97 per cent

stake of the Japanese company for Rs 9 crore.

37
Globally, TVS Motor Company is the first two-wheeler manufacturer to be honored with the

hallmark of Japanese Quality - The Deming Prize for Total Quality Management. It is the only

automotive manufacturer in India to get the prestigious Deming Prize. One of its subsidiaries

Sundaram Clayton was the first company in India to receive the Deming followed by Sundaram

Brake Linings also getting the Deming Prize. This prize is "given to organizations or divisions of

organizations that have achieved distinctive performance improvement through the application of

TQM in a designated year."Sundaram Clayton went on to be awarded the Japan Quality Medal.

38
 THE MAJOR PRODUCTS

MOTORCYCLES

 TVS Star Sport

 TVS Fiero F2

 TVS Centra

 TVS Victor (110 cc)

 TVS Victor GLX (125 cc)

 TVS Victor EDGE (125 cc)

 TVS Flame (125 cc,ccvti technology)

 TVS Apache (150 cc,13.7 Ps @8500rpm)

 TVS Apache RTR 160

 TVS Apache RTR 160 EFI (Electronic Fuel Injection)

SCOOTERS

 Spectra Dx (150 cc)

 Spectra Ax (150 cc)

39
SCOOTERETTES

 TVS Scooty ES (60 cc)

 TVS Scooty KS (60 cc)

 TVS Scooty Pep (75 cc)

 TVS Scooty Pep + (90 cc)

 TVS Teenz

MOPEDS

 TVS 50 XL (50 cc)

 TVS XL (60 cc)

 TVS XL Super (60 cc)

 TVS Champ (60 cc)

 TVS Super Champ (60 cc)

40
VICTOR THE SAVIOUR

TVS launched Victor 110 cc model in September 2001, with leading cricketer Sachin

Temdulakar as the brand ambassador. The model proved to be a big success. The success of

TVS Victor is especially significant because it was developed with indigenous technology

Two New Launches could out TVS on a high Growth Trajectory

TVS CENTRA

TVS Centra a new look model has recently been launched and the company has set ambitions

targets of achieving monthly sales in the range of 15000-20000 bikes per month.

Also, a new upgraded 125cc TVS Victor has been launched which will improve the trajectory of

the company.

TVS MOTOR COMPANY LAUNCHES “STAR SPORT”, A NEW 100cc

MOTORCYCLE

Two wheeler major, TVS Motor Company expanded its economy segment offering with the

launch of a new motocycle, “Star Sport.” Star Sport is a stylish, compact and affordable 100cc

motorcycle, aimed at discerning urban motorcycle customers who are on the look out for sleek

and compact style. The Bike has been built to deliver punchy four stroke performance with

excellent mileage and effortless maneuverability that will have customers tackle busy city traffic

with absolute ease.

41
THREE WHEELER PROJECT – ENTERING A NEW MARKET

TVS Motor has set the stage for entry into the three – wheeler market with the setting up of a

new plant at Nanjangud, near Mysore in Karnataka. We understand that the company would be

targeting the sub – one tonne passenger and goods carriers segment of the market. With an

investment of about Rs. 50 crore in phase I, it will cater to both passenger and cargo segments.

The total investment for the three – wheeler and four – wheeler quadricycle project are expected

to be in the range of Rs 500 crore in the next 2 to 3 years. It plans to go with the petrol version of

three wheelers and expects higher demand to come from B class towns. The company expects

higher margin and low competition in three – wheeler business as compared to its two – wheeler

business. Three – wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh

units FY 05, and are expected to grow at the same rate for the next five years. TVS is expected

to roll out its first three – wheeler by the end of FY 07 to garner a 30% market share with around

1,00,000 unit sales by the end of FY 09.

THREE – WHEELER MARKET SCENARIO

There are two main segments in the Indian Passenger three – wheeler markets are:

Number of seats including driver not exceeding 4 and maximum max not exceeding one tonne

Number of seats including driver excluding 4 but not exceeding 7 max mass not exceeding

1.5 tonne

The three – wheeler goods carrier segments

are: Maximum mass not exceeding one tonne

42
Others

Around 95% of the three – wheeler sold in India belong to the smaller vehicles category in which

Bajaj Auto is the major player and has around 90% market share. The other players in the

segment are Atul Auto and Piaggio Group, Italy.

Similarly, in the three – wheeler segment, domestic sales of the goods carrying variety grew a

whopping 46.95%. This growth in 2002-03 could have possibly come from two factors:

1. The increasing number of cities whose corporations have legislated that larger

goods carrier, like trucks be kept out for logistic purpose

2. The increase in the number of offerings in this category, especially from companies

such as Mahindra & Mahindra and Piaggio Vehicles Private Ltd.

QUADRICYCLE – A NEW INTRODUCTION IN THE INDIAN MARKET

There is a new challenge emerging in the Quadricycle segment. These new vehicles could

impact on the entry level sale. Quadricycles are three wheelers converted into four wheelers by

using, a column axle. All the major units have prepared quadricycles prototypes.

PLANS SETTING UP MANUFACTURING UNITS IN INDONESIA/VIETNAM

TVS Motor is actively looking to set up a foothold in the south-east Asian markets and has made

top level visits to Indonesia and Vietnam. Indonesia is the third largest two wheeler market in

the world with an estimated size this year of 2 million units. Presently, in Indonesia there is one

43
motorcycle for every 15 people, in Vietnam one for every 7 people. Further, in Indonesia 40

million households, representing 86% of the total not having motorcycle.

Merger of the Engine Components Division of Lakshmi Auto Components with TVS Motors

TVS Motor would merge engine component division of Lakshmi Auto Component Ltd (LAC) and

investments and other assets with itself and the dwap ratio has been fixed at once phase of TVS Motor.

TVS Motor Company is the third largest two-wheeler manufacturer in India and

one among the top ten in the world, with annual turnover of more than USD 1.4

billion in 2011-2012, and is the flagship company of the, USD 7.29 billion, TVS

Group.

The business ranges across automobile component manufacturing, components

distribution, manufacturing of powered two-wheelers, computer peripherals,

financial services, contract manufacturing services and software development.

TVS Motor Company Ltd (TVS Motor), member of the TVS group, is the

largest company of the group in terms of size and turnover.

A Vehicle for Everyone

TVS Motor currently manufactures a wide range of two-wheelers. Take your

pick from mopeds to racing inspired motorcycles.

Motorcycles (Apache Series RTR, Phoenix 125, MAX4R, Star City, Sport)

Variomatic Scooters (Jupiter, Wego, Scooty Streak, Scooty Pep +)

44
Mopeds (TVS XL Super, TVS XL Heavy Duty)

Manufacturing Locations

The company has four manufacturing plants, three located in India (Hosur and

Mysore, Karnataka and Nalagarh, Himachal Pradesh) and one in Indonesia

(Karawang).

Innovation at the Helm

TVS Motor's strength lies in design and development

of new products. We at TVS deliver total customer

satisfaction by anticipating customer need and

presenting quality vehicles at the right time and at the

right price. The customer and his ever changing need

is our continuous source of inspiration. We have

proved time and again that this sense of

responsiveness along with a penchant for quality is a

winning formula. The company has many firsts to its

credit including the fact that we launched seven

vehicles on the same day - a rare feat in Automotive

45
history.

Inspiring Millions of Smiles

TVS has always stood for innovative, easy-to-handle, and environment-friendly

products, backed by reliable customer service.

More than 24 million* customers have bought a TVS product to date.

Innovative, easy to handle, environment-friendly and backed by reliable

customer service, TVS products give you only reasons to smile!

TVS Automatic Transmission Technology (TVSATT)

TVSAT What is it?

A new technology that will enhance fuel efficiency by as much as twenty

percent when compared to the conventional technology deployed today.

46
Click to enlarge Click to enlarge

Why was it developed?

The conventional rubber belt CVT equipped scooters deliver up to 20% worse

fuel economy compared to a standard motorcycle but CVT has the benefit of

ease of riding.

Click to enlarge

The ultimate objective is to achieve the ease of riding of a CVT equipped

scooter, with the fuel economy of a standard motorcycle - develop a fuel

efficient engine that can be used across various platforms like Scooter,

Motorcycle, Step-Thru's

How does it work?

This technology employs an Automatic Transmission in place of conventional

Continuously Variable Transmission Technology (CVT). This changes gears

effortlessly through electronic control, automatically selecting the gear ratios for

47
a particular riding condition. This enables the engine to run at its most efficient

RPM (revolutions per minute) for a range of vehicle operating conditions,

thereby maximizing the engine performance to achieve peak efficiency;

overriding the requirement of a clutch.

The engine developed for this is compact, fuel efficient and can be used across

product forms like Scooter, Motorcycles and Step-Thru's. Some other important

advantages of this technology are:

1. Lowest CO2 emission in Scooters

2. Low Floor Board

3. Space for luggage

This technology employs an innovative ECU (Electronic Control Unit) which

enhances the performance and fuel economy, giving greater convenience of

riding. An advanced cooling arrangement, which is based on the vehicle motion

itself, avoids use of engine driven fan, thus minimizing the additional

consumption of fuel. The improvement in engine efficiency is derived through

friction reduction and multi map electronic ignition control, while transmission

efficiency is boosted through this new technology.

What do you get?

20% better fuel economy without compromising the riding comfort and

48
convenience

Type of Vehicle Fuel economy Convenience

Motorcycle High Low

Scooter Low High

TVS AMT High High

TVS Motor Company –

Mission

We are committed to being a highly profitable, socially responsible, and

leading manufacturer of high value for money, environmentally friendly,

lifetime personal transportation products under the TVS brand, for customers

predominantly in Asian markets and to provide fulfilment and prosperity for

employees, dealers and suppliers.

Vision Statement

Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its

core competence and profitability. TVS Motor will provide total customer

49
satisfaction by giving the customer the right product, at the right price, at the

right time.

TheIndustryLeader

TVS Motor will be one among the top two two-wheeler manufacturers in

India and one among the top five two-wheeler manufacturers in Asia.

Globaloverview

TVS Motor will have profitable operations overseas especially in Asian

markets, capitalizing on the expertise developed in the areas of

manufacturing, technology and marketing. The thrust will be to achieve a

significant share for international business in the total turnover.

At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant

benchmarking against international leaders.

Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in

50
perpetuity by adopting TQM as a way of life. TVS Motor believes in the

importance of the process. People and projects will be evaluated both by their

end results and the process adopted.

The Human Factor

TVS Motor believes that people make an organization and that its well-being

is dependent on the commitment and growth of its people. There will be a

sustained effort through systematic training and planning career growth to

develop employees talents and enhance job satisfaction. TVS Motor will

create an enabling ambience where the maximum self-actualisation of every

employee is achieved. TVS Motor will support and encourage the process of

self-renewal in all its employees and nurture their sense of self worth.

Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and

Environmental aspects with all business activities and ensure protection of

employees and environment including development of surrounding

communities. TVS Motor strives for long-term relationships of mutual trust

and interdependence with its customers, employees, dealers and suppliers.

51
 SWOT ANALYSIS

This project oil the customer behavior level has thrown a light on the strengths weaknesses,

opportunities & the threats TVS is facing in the Indian market. These can be summarized as:

STRENGTHS:

TVS the big small cur from TVS is the most advanced vehicle technologically as well as

aesthetically. Some more strong points that were reflected during the survey are given below.

1. The outlook of the ear has a great appeal and almost every body during the survey was

found satisfied with the outlook.

2. The safety features of the Heavy vehicle are also one of the strong reasons for the

customers to buy TVS has the best safety features in its range of the Heavy vehicle.

3. The customers have accepted this Heavy vehicle as the family Heavy vehicle and thus

Heavy vehicle can target the families now.

4. The exteriors of the Heavy vehicle i.e. size shape, space, headlight the tail light arc also

appealing and most of the customers arc fully satisfied with these features of the Heavy

vehicle.

5. The legroom & headroom of the Heavy vehicle is very good. The customers are praising

this feature very much.

6. All the models of TVS Motors. Are EURO II compliant

52
WEAKNESS

TVS even with the best Heavy vehicle technically as well as aesthetically is not performing very

well in the Indian Heavy vehicle market the sales & hence the market share of TVS is very low

the survey also reflected the weakness of the company.

I. Mileage is the first factor of consideration for and buyer of the small Heavy vehicle TVS.

Truck although performing very well on this aspect but some of the customers are not all

satisfied as their Heavy vehicle is not giving it good average these small customers can cause

disloyalty to the company & Hills the company need to remain consistent as well as this factor

should be communicated very well to the customers.

2. Pick up of the Heavy vehicle especially while the load is more, is also not satisfying the

customers.

3. Heavy load is yet another area, which needs a considerable amount of attention from the

engineers.

4. The service network and the availability of spares also is in area causing a lot of problems for

the customers.

Those are some of the weaknesses of the company as far the TVS is concerned these field need it

complete reservation of the features and a complete repositioning and is creating good brand

loyalty.

These are sonic of the few points that TVS has in its accounts as far the customers are concerned

overall the Heavy vehicle TVS can command a good market but it is now the responsibility of

the marketing people to position this Heavy vehicle.

53
OPPORTUNITIES

The small Heavy vehicle market in India is still in its rowing, stages and there are as lot of

opportunities for the companies in this field. TVS the big Heavy vehicle market in India is still in

its growing stages and there are as lot of opportunities for the companies in this field all the

players except TVS Motors arc now and Competition is intense the opportunities for TVS are

also there in the market.

1. Most of the population in India belong to the middle class who prefer to buy small Heavy

vehicles therefore TVS has also a lot of opportunities in this field.

2. Spare availability needs a complete exploration from every company this factor is one of

the most important for the customers.

3. The service network and the customer Heavy vehicle is also the sank story.

“These are the Field which needs a complete exploration not only by TVS but from every

company.

THREATS

Every enterprise with its evolution is hound to get certain threats and they need a Heavy vehicle

analysis and action. The chief threat to TVS is the competition itself. The entry of four major

competitors at almost same price has evolved major threats front the customers side the

following threats coming in light.

1. The pricing policy of the company is not good the Company some time increases and some

dine decreases so that customer make uncertainly which make the customers felt exploited.

2. The communication with the customers about the arability ad the feature is good but workshop

attitudes are not good owner.

54
3. With the intense competition to provide the best quality at cheapest price must also he the

attention of the top management.

4. TVS 800, it is the responsibility of the marketing people now to communicate it as the small

Heavy vehicle to the potential customers.

5. The strong points need more perfection the weak points need more Heavy vehicle,

the opportunities, need more attention and the threats need a complete change of vision.

55
 MARKET STRATEGY

MARKET

In economics, a market is a natural social structure developed by any economic or

economically-oriented, human interaction to facilitate the exchange of rights, services or product

ownership. Markets enable peoples' services, firms and products to be evaluated and priced.

There are two roles in markets, buyers and sellers. The definition implies that at least three actors

are needed for a market to exist; at least one actor, on the one side of the market, who is aware of

at least two actors on the other side whose offers can be evaluated in relation to each other. A

market allows buyers and sellers to discover information and carry out a voluntary exchange of

goods or services. This is commonly done through trade. These trades may be handled a variety

of ways, but in small market environments, buyers and sellers typically deal in currency, and

goods. In everyday usage, the word "market" may also refer to the location where goods are

traded, or in other words, the marketplace.

MARKET STRATEGY

A marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage. Marketing strategy is defined by David Aaker as a process that can allow an

organization to concentrate its resources on the optimal opportunities with the goals of increasing

sales and achieving a sustainable competitive advantage. Marketing strategy includes all basic

and long-term activities in the field of marketing that deal with the analysis of the strategic initial

56
situation of a company and the formulation, evaluation and selection of market-oriented

strategies and therefore contribute to the goals of the company and its marketing objectives .

Characteristics of Good Strategic Marketing Plans

The late President Eisenhower's laconic remark expresses a cardinal tenant of effective strategy

formulation: Good planning is a process, not a document or event.

When conducted earnestly, the process produces a detailed but structured view of the business

landscape and the forces at work in it. But the true value of the process has less to do with the

deliverable (a document or report), than with exploring possible ranges of actions, with a wide

array of contingencies and alternative scenarios accounted for. The end product is more like a

map than a report—adaptable, fluid and informative in nature, not a two-dimensional to-do list

of dictated initiatives, budgets and timelines.

Eight parameters can help in gauging the viability of strategic marketing plans. If your planning

process reflects these attributes, it's probably off to a good start.

 Accountability—responsibility is assigned for successful completion of initiatives.

 Balance—the plans inform and guide not only financial decision-making, but also

operational and human resource issues.

 Flexibility—a mechanism for changing and updating the plan is built into the

process.

57
 Manageability—in-process measures are identified to ensure processes are working

as intended, critical performance issues are addressed, resources required are projected,

and methods of status reporting are in place.

 Prioritization—priorities are established whenever multiple interdependent actions

have been planned.

 Realism—the question of what the organization really can do versus what it would

like to do is addressed rationally, though the tone may be optimistic.

 Specificity—expected results and milestones are clearly defined, along with the

specific actions for implementation and the deliverables for each step.

 Sustainability—a sufficient time period is allowed to close performance gaps.

58
Types of strategies

Every marketing strategy is unique, but can be reduced into a generic marketing strategy. There

are a number of ways of categorizing these generic strategies. A brief description of the most

common categorizing schemes is presented below:

 Strategies based on market dominance - In this scheme, firms are classified based on their

market share or dominance of an industry. Typically there are three types of market

dominance strategies:

o Leader

o Challenger

o Follower

Here are some popular marketing strategies

 Affinity Marketing - Also known as Partnership Marketing, this technique links

complementary brands, thereby creating strategic partnerships that benefit both companies.

While one adds value to existing customers by generating more income, the other builds new

customer relationships.

 Alliance Marketing - Here two or more entities come together to pool in their resources

to promote and sell a product or service, which will not only benefit their stakeholders, but

also have a greater impact on the market.

59
 Ambush Marketing - This strategy is used by advertisers to capitalize on and associated

themselves with a specific event without the payment of any sponsorship fee, thereby

bringing down the value of sponsorship. It has sub-categories like direct or predatory

ambushing or indirect ambushing by association, to name a few.

 Call to Action (CTA) Marketing - CTA is a part of inbound marketing used on websites

in the form of a banner, text or graphic, where it is meant to prompt a person to click it

and move into the conversion funnel, that is, from searching to navigating an online store

to converting to a sale.

 Close Range Marketing (CRM) - Also known as Proximity Marketing, CRM uses

bluetooth technology or Wifi to promote their products and services to their customers at

close proximity.

 Cloud Marketing - This refers to the type of marketing that takes place on the internet,

where all the marketing resources and assets are transferred online so that the respective

parties can develop, modify, utilise and share them.

 Community Marketing - This technique caters to the needs and requirements of the

existing customers, as opposed to using resources to gather new consumers. This

promotes loyalty and product satisfaction and also gives rise to word of mouth marketing

among the community.

60
 Content Marketing - In this case, content is created and published on various platforms

to give information about a certain product or service to potential customers and to

influence them, without making a direct sales pitch.

 Cross-media Marketing - As the name suggests, multiple channels like emails, letters,

web pages etc are used to give information about products and services to customers in

the form of cross promotion.

 Database Marketing - This utilizes and information from database of customers or

potential consumers to create customised communication strategies through any media in

order to promote products and services.

 Digital Marketing - This strategy uses various digital devices like smartphones,

computers, tablets or digital billboards to inform customers and business partners about

its products. Internet Marketing is a key element in Digital Marketing.

 Direct Marketing - This is a wide term which refers to the technique where

organisations communicate directly with the consumer through mail, email, texts, fliers

and various promotional materials.

61
  Diversity Marketing - The aim of this strategy is to take into account the different

diversities in a culture in terms of beliefs, expectations, tastes and needs and then create a

customised marketing plan to target those consumers effectively.

 Evangelism Marketing - It is similar to word-of-mouth marketing, where a company

develops customers who become voluntary advocates of a product and who promote its

features and benefits on behalf of the company.

 Freebie Marketing - Here a particular item is sold at low rates, or is given away free, to

boost the sales of another complimentary item or service.

 Free Sample Marketing - Unlike Freebie Marketing, this is not dependent on

complimentary marketing, but rather consists of giving away a free sample of the product

to influence the consumer to make the purchase.

 Guerrilla Marketing - Unconventional and inexpensive techniques with imagination,

big crowds and a surprise element are used for marketing something, a popular example

being flash mobs.

 Social Marketing:

It refers to the design, implementation and control of programs to increase the acceptability of a

social cause or practice among people e.g. No Smoking campaign in Delhi University, publicity

campaign for casting vote.

62
  Augmented Marketing:

It refers to providing additional services by way of innovative offerings and benefits to the

customers to increase his level of satisfaction e.g. free home delivery service by Supermarkets.

 Relationship Marketing:

Marketing through creating, maintaining and enhancing strong long-term relationships with

customers in order to win his loyalty e.g. a restaurant can build relationships with customers by

sending him wishes and discount offers on his birthdays.

 Services Marketing:

It is applying the concepts, tools and techniques of marketing to services like banking, insurance,

retailing, educational etc.

 Person Marketing:

It consists of activities undertaken to create, maintain or change attitudes or behavior towards

particular people like politicians, sports stars, film stars, professionals to promote their careers

and income.

 Organisation Marketing:

It consists of activities undertaken to create, maintain or change attitudes and behavior of target

audiences towards an organisation.

 Place Marketing:

63
Place marketing involves activities undertaken to create, maintain, or change attitudes and

behavior towards particular places e.g. tourism marketing.

 Differential Marketing:

A market-coverage strategy in which a firm decides to target different markets through different

strategies or offers e.g. Hindustan Unilever offers different types and qualities soaps for different

markets and customers.

 Synchro marketing:

It refers to balancing the fluctuations in irregular demand for a product due to seasons, timings

etc, through flexible pricing, promotion and other incentives e.g. heavy off-season discount on

woollens may increase its demand to some extent.

 Concentrated Marketing:

A market-coverage strategy in which a firm focuses on only one or few markets.

12. De-marketing:

Marketing strategies to reduce demand temporarily or permanently, not to destroy demand but

only to shift it e.g. Super stores may offer no discounts on Saturdays, Sundays and holidays to

reduce overcrowd.

By keeping in mind the distinctive features of the product, the demographics of the target

consumer and their spending power, and the current strategies of existing companies, an

effective marketing strategy may be successfully created.

64
 Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength refers to

the firm’s sustainable competitive advantage.

o Cost leadership

o Product differentiation

o Market segmentation

 Innovation strategies - This deals with the firm's rate of the new product development and

business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

o Pioneers

o Close followers

o Late followers

 Growth strategies - In this scheme we ask the question, “How should the firm grow?”.

There are a number of different ways of answering that question, but the most common

gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

A more detailed scheme uses the categories:

 Prospector

 Analyzer

65
  Defender

 Reactor

 Marketing warfare strategies - This scheme draws parallels between marketing strategies

and military strategies

Developing a marketing strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill

market needs and reach marketing objectives.Plans and objectives are generally tested for

measurable results. Commonly, marketing strategies are developed as multi-year plans, with a

tactical plan detailing specific actions to be accomplished in the current year. Time horizons

covered by the marketing plan vary by company, by industry, and by nation, however, time

horizons are becoming shorter as the speed of change in the environment increases. Marketing

strategies are dynamic and interactive. They are partially planned and partially unplanned. See

strategy dynamics. Marketing strategy needs to take a long term view, and tools such

as customer lifetime value models can be very powerful in helping to simulate the effects of

strategy on acquisition, revenue per customer and churn rate.

Marketing strategy involves careful and precise scanning of the internal and external

environments.Internal environmental factors include the marketing mix and marketing mix

modeling, plus performance analysis and strategic constraints. External environmental factors

include customer analysis, competitor analysis, target market analysis, as well as evaluation of

any elements of the technological, economic, cultural or political/legal environment likely to

impact success. A key component of marketing strategy is often to keep marketing in line with a

company's overarching mission statement.

66
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify

business alternatives, establish challenging goals, determine the optimal marketing mix to attain

these goals, and detail implementation. A final step in developing a marketing strategy is to

create a plan to monitor progress and a set of contingencies if problems arise in the

implementation of the plan.

Marketing Mix Modeling is often used to help determine the optimal marketing budget and how

to allocate across the marketing mix to achieve these strategic goals. Moreover, such models can

help allocate spend across a portfolio of brands and manage brands to create value.

67
 MARKETING STRATEGIES ADVANTAGES

Communicate Your Goals

 One of the most important advantages of creating a marketing strategy is that it helps you

clearly identify your marketing goals. This is important because often businesses do not spend

the necessary time to plan and articulate their business goals. Using a marketing strategy to

develop your marketing goals gives you a reference document that all your employees and

company stakeholders can refer to when developing other strategies for your business.

Understand Your Competition

 Another advantage of a marketing strategy is that it helps you better understand your

competitors. Marketing strategies commonly have a competitive analysis section, which lists

each of your competitors, describes their strengths and weaknesses, identifies their market share

and communicates their strategies and tactics. Understanding your competitors' strengths and

weaknesses can help you focus on your own company's competitive advantages.

Understand Your Target Market

 Another advantage of creating a market strategy is that you develop a deep understanding

of the customers you are targeting. In your marketing strategy, you include profiles for each of

your target customer segments. For example, one segment might be "Caucasian females between

the ages of 40 and 60 who make the majority of health decisions for their family." Marketing

strategies help you better understand the unique needs and preferences of your customers, which

can lead to insights about what marketing strategies and tactics to use.

68
 Develop Strategies

 Marketing strategies also outline the specific strategies and tactics you will use to target

your customers, which is an advantage because it helps you organize a plan based on your

unique marketing goals. Some companies simply choose one or two marketing strategies and

tactics to focus on without any rhyme or reason. With a marketing strategy, the tactics you

choose are based on research and market insights, which can be a huge competitive advantage.

Develop an Implementation Plan

 Finally, marketing strategies are advantageous to companies because they let you create a

detailed plan for implementing your marketing tactics. Having a plan in place allows you to

develop and organize key milestones, dates and budgets related to each tactic you choose. When

you decide and plan your implementation schedule ahead of time, you can save time and money

down the road.

69
 MARKETING STRATEGIES DISADVANTAGES

Oversaturation
Marketing and promotional efforts that rely heavily on advertising run the risk of oversaturation in

the targeted market. This can take two forms. In markets with lots of competition, advertising from

one business tends to get lumped and ignored along with advertising from every business in that

industry. The second form occurs when a business or product receives so much advertising and

promotion that the targeted consumers get turned off by the mere mention of the business or

product.

Product Devaluation

Many businesses employ discounts and special pricing as a promotional strategy to capture market

share. Special pricing strategies, when used sparingly and for very limited periods of time, can

generate positive results. When overused or maintained for extended periods of time, discount

pricing strategies can decrease the perceived value of the product. After the discount pricing period

ends, many consumers decline to pay the regular retail price for a product.

Ignoring existing customers

Converting prospects into paying customers almost always costs more than making sales to existing

clients. In spite of this, many marketing and promotional strategies fixate on capturing new

customers with little or no thought given to existing customers. This type of new customer tunnel

vision effectively discards a large group of people with which the business already has a

relationship, and who probably maintain an interest in new products or services in the industry. The

absence of marketing aimed at existing customers loses the business money, as sales to these

customers often require nothing more than sending emails to a client list.
70
Cost

While online marketing and promotional strategies do level the playing field to some extent, cost

represents the big disadvantage for most marketing efforts. Television spots, particularly during high

viewership hours, can cost more than the entire marketing budgets of some businesses. In general,

the larger the geographic area the marketing needs to reach, the higher the costs. Publications with

higher circulation numbers tend to charge more for ad space. In some cases, reaching the right areas

requires negotiating separate arrangement with a number of media outlets, which incurs time costs,

as well as financial costs.

71
FOUR PRINCIPLES OF MARKETING STRATEGY IN DIGITAL
AGE

Life for marketers used to be simpler. We had just a few TV channels, some radio stations, a

handful of top magazines and a newspaper or two in each market. Reaching consumers was

easy, if you were able craft a compelling message, you could move product.

Ugh! Now we’ve got a whole slew of TV channels, millions of web sites and hundreds of

thousands of “Apps” along with an alphabet soup of DMP’s, API’s and SDK’s. Marketing was

never easy, but technology has made it a whole lot tougher.

What used to be a matter of identifying needs and communicating benefits now requires us to

build immersive experiences that engage consumers. That means we have to seamlessly

integrate a whole new range of skills and capabilities. It’s easy to get lost among a sea of

buzzwords and false gurus selling snake oil. Here are 4 principles to guide you:

1. Clarify Business Objectives

There’s so much going on in the marketing arena today, everybody is struggling to keep up. At

the same time, every marketing professional feels pressure to be “progressive” and actively

integrate emerging media into their marketing program.

However, the mark of a good marketing strategy is not how many gadgets and neologisms are

crammed into it, but how effectively it achieves worthy goals. Therefore, how you define your

intent will have a profound impact on whether you succeed or fail.

72
Unfortunately, there is a tendency for marketers to try to create a “one size fits all” approach for

a portfolio of brands or, alternatively, to want to create complicated models to formulate

marketing objectives. However, most businesses can be adequately captured by evaluating just

three metrics: awareness, sales and advocacy (i.e. customer referral).

Some brands are not widely known, others are have trouble converting awareness to sales and

still others need to encourage consumer advocacy. While every business needs all three, it is

important to focus on one primary objective or your strategy will degrade into a muddled

hodgepodge.

2. Use Innovation Teams to Identify, Evaluate and Activate Emerging Opportunities

Marketing executives are busy people. They need to actively monitor the marketplace, identify

business opportunities, collaborate with product people and run promotional campaigns. It is

unreasonable to expect them to keep up with the vast array of emerging technology and tactics,

especially since most of it won’t pan out anyway.

Therefore, it is essential to have a team dedicated to identifying emerging opportunities, meeting

with start-ups and running test-and-learn programs to evaluate their true potential. Of course,

most of these will fail, but the few winners will more than make up for the losers.

Once an emerging opportunity has performed successfully in a pilot program, it can then be

scaled up and become integrated into the normal strategic process as a viable tactic to achieve an

awareness, sales or advocacy objective.

73
3. Decouple Strategy and Innovation

Unfortunately, in many organizations, strategy and innovation are often grouped together

because they are both perceived as things that “smart people” do. Consequently, when firms

approach innovation, they tend to put their best people on it, those who have shown a knack for

getting results.

That’s why, all too often, innovation teams are populated by senior executives. Because

innovation is considered crucial to the future of the enterprise (and also due to the institutional

clout of the senior executives) they also tend to have ample resources at their disposal. They are

set up to succeed. Failure, all too often, isn’t an option.

However, strategy is fundamentally different from innovation. As noted above, a good strategy

is one that achieves specific objectives. Innovation, however, focuses on creating something

completely new and new things, unfortunately, tend to not work as well as standard solutions (at

least at first). The truth is that innovation is a messy business.

So failure must be an option, which is why technologically focused venture capital firms expect

the vast majority of their investments to fail. However, failure must be done cheaply, so

resources (and therefore senior executives) must be kept to a minimum.

4. Build Open Assets in the Marketplace

The primary focus of marketing promotion used to be to create compelling advertising

campaigns that would get the consumer’s attention and drive awareness. Once potential

customers were aware of the product, direct sales and retail promotions could then close the deal.

74
That model is now broken. Today, effective promotional campaigns are less likely to lead to a

sale and more likely to result in an Internet search, where consumers’ behavior can be tracked

and then retargeted by competitors. Simply building awareness and walking away is more likely

to enrich your competition than yourself.

Successful brands are becoming platforms and need to do more than just drive consumers to a

purchase, they have to inspire them to participate. That means marketers have to think less in

terms of USP’s, and GRP’s and more in terms of API’s and SDK’s. Focus groups are giving

way to accelerators and creation to co-creation.

In the digital age, brands are no longer mere corporate assets to be leveraged, but communities of

belief and purpose.

WHEN MARKETING IS STRATEGY

It’s no secret that in many industries today, upstream activities—such as sourcing, production,

and logistics—are being commoditized or outsourced, while downstream activities aimed at

reducing customers’ costs and risks are emerging as the drivers of value creation and sources of

competitive advantage. Consider a consumer’s purchase of a can of Coca-Cola. In a supermarket

or warehouse club the consumer buys the drink as part of a 24-pack. The price is about 25 cents a

can. The same consumer, finding herself in a park on a hot summer day, gladly pays two dollars

for a chilled can of Coke sold at the point-of-thirst through a vending machine. That 700% price

premium is attributable not to a better or different product but to a more convenient means of

obtaining it. What the customer values is this: not having to remember to buy the 24-pack in

advance, break out one can and find a place to store the rest, lug the can around all day, and

figure out how to keep it chilled until she’s thirsty.

75
Downstream activities—such as delivering a product for specific consumption circumstances—

are increasingly the reason customers choose one brand over another and provide the basis for

customer loyalty. They also now account for a large share of companies’ costs. To put it simply,

the center of gravity for most companies has tilted downstream.

Yet business strategy continues to be driven by the ghost of the Industrial Revolution, long after

the factories that used to be the primary sources of competitive advantage have been shuttered

and off-shored. Companies are still organized around their production and their products, success

is measured in terms of units moved, and organizational hopes are pinned on product pipelines.

Production-related activities are honed to maximize throughput, and managers who worship

efficiency are promoted. Businesses know what it takes to make and move stuff. The problem is,

so does everybody else.

The strategic question that drives business today is not “What else can we make?” but “What

else can we do for our customers?” Customers and the market—not the factory or the product—

now stand at the core of the business. This new center of gravity demands a rethink of some

long-standing pillars of strategy: First, the sources and locus of competitive advantage now lie

outside the firm, and advantage is accumulative—rather than eroding over time as competitors

catch up, it grows with experience and knowledge. Second, the way you compete changes over

time. Downstream, it’s no longer about having the better product: Your focus is on the needs of

customers and your position relative to their purchase criteria. You have a say in how the market

perceives your offering and whom you compete with. Third, the pace and evolution of markets

are now driven by customers’ shifting purchase criteria rather than by improvements in products

or technology.

76
 MARKET STRATAGIES FOLLOWED BY TVS

1 .Star and Apache - key volume drivers

“Much of the volume growth is being contributed by the Star and Apache along with a fillip

from the Victor variants. For the period April - October 06, the company recorded 9,37,405 units

of two wheelers compared to 7,70,841 units recorded in the previous year, at a growth of 22%.

The motorcycles during this period clocked 5,84,155 units at a growth rate of 30%. TVS Star

brand crossed the 1 million sales mark since its launch and with the recent launch of the electric

start variant the demand for the vehicle is expected to grow further in the coming months.

Apache continues to be in demand and has captured sizeable share in the premium segment of

the motorcycle market.”

2, Brand Building – focus to sustain

“The company has been spending whole-heartedly in creating its key model brands. The

company plans to capitalise on the sizable success achieved by top brands in respective

segments. The Star, Victor and Apache in respective segments have done well and all future

efforts would be directed towards keeping the brand image live and fresh by introducing newer

variants of the existing successful bikes.”

77
3. Trying to capture the Imagination of people

TVS Motors launches seven products in one go

TVS Motors, the country's third largest two-wheeler manufacturer, launched seven products here

on Thursday in a first-of-its-kind rollout in the Indian automobile industry.

Apache RTR 160 EFI

The seven products include a completely new 125 cc motorcycle FLAME, an all new 110 cc

StaR City, an Apache variant with fuel injection technology and the electric variant of a Scooty.

TVS Flame (125cc)

78
The other three products were the petrol, CNG and LPG version of a three-wheeler passenger

vehicle that will compete with the Bajaj group, the only player in that segment.

"This is the first step to make the announcement of TVS as a young Indian multinational

company. We have done significant amount of hard work in the last three years and now 2007

will mark the emergence of new TVS," said Venu Srinivasan, chairman and managing director

of TVS Motors.

He added that the simultaneous rollouts are a tribute to the engineering skill of the research and

development wing of TVS, making it the first two-wheeler company to make multiple rollouts in

a single day.

He said the production of all newly launched vehicles will start in October and they will hit the

road by November.

"Each new rollout signals avowed intent on the part of TVS to regain market share and

momentum within the industry. The new offerings are targeted at different segments of the two-

and three-wheeler customers with emphasis on superior technology, styling and engine

capabilities," said Srinivasan.

In its bid to make more environment-friendly vehicle, TVS also announced the launch of its new

CCVTi (controlled combustion variable timing intelligent) engine, which will be integrated in

the newly launched 125cc FLAME.

79
"The CCVTi engine not only reduces the carbon dioxide but also cuts down carbon monoxide

production by 70 per cent. The Indian auto industry has to make its best effort to make a green

revolution," said Srinivasan.

TVS starCity (110cc)

The new StaR City comes in a 110 cc platform while the Apache RTR is mated with electronic

fuel injection and has a greener technology.

Out the seven models launched, three were versions of a three-wheeler passenger vehicle - in

petrol, CNG and liquefied petroleum gas (LPG) variants.

"The CNG is just an alternate source of fuel for us. And it can be on any platform - maybe a

motorcycle or a scooter. But it will be a motorcycle," said Srinivasan.

The other four launches were a completely new 125 cc motorcycle FLAME, an all new 110 cc

StaR City, an Apache variant with fuel injection technology and the electric variant of Scooty.

80
TVS scooty Teenz Electric

"The auto industry has to make its best effort to make a green revolution by developing the

technology of the future," said Srinivasan.

The TVS chief added the company has plans for a "hybrid vehicle" but it would take a long time

as the cost is significantly high and the market is niche.

4. Customer Satisfaction And Quality

The continued improvement in quality of its products has resulted in the company

winning several quality awards as well as bringing in more value for its

customers. Last year, TVS Apache, which was awarded 'Bike of the Year 2006'

by several leading auto magazines, was chosen as the number 1 motorcycle

brand in its class, in an all India customer satisfaction survey conducted by TNS

Automotive. Recently, TVS Apache won the 'NDTV Car & Bike – AAA viewers

choice Bike of the Year 2007' award, thus reinforcing customer's preference.

81
During the year, the company offered a unique 5–year warranty scheme for itsdiscerning TVS

StaR customers.

5. Research And Development

Several Advanced Engineering and technological researches are constantly

undertaken by the company to ensure world-class products are offered to its

customers. TVS Motor works closely with global Design and Research houses to

give the Indian Consumer the very best in terms of technology, style and fuel

efficiency. The company has applied for over 150 patents and its R&D team has

published 33 technical papers in national and international conferences

6. Increasing Nationwide Network And Reach

TVS Motor Company is aggressively increasing its national reach of its sales and

service footprint through increased national network for customer access.

Currently the products of the company can be purchased and serviced from over

3000 points.

82
7. Creating goodwill in the market- Serving the society

This extended arm of the company believes in social responsibility and has involved itself in

several community development initiatives that have significantly improved the standard of

living of the people in 51 adopted villages across the country.

Economic development

The program enables people below the poverty line in these adopted villages to earn their

livelihood by involving them in activities that generate income..

Health

Health is one of the main focus areas of the Srinivasan Services Trust. Dental care camps; eye

camps, health check-up and nutrition programs are conducted. The initiative also focuses on

primary health, maternal health, child-care and leprosy eradication.

Infrastructure Development

The company is actively involved in the community development of the villages by providing

infrastructure facilities such as housing, sanitation, roads, drains, bus shelters, medical centre and

natural resources management.

Rebuilding Quake Hit Villages

Supported by Rural Agro Research & Development Society and Kutch Nav Nirman

Abhiyan, the Company has rebuilt “Goyersama” a village in the District of Gujarat, which was

hit by an earthquake of unprecedented scale and magnitude on 26th January 2001.

83
Education and Literacy

In addition to providing infrastructure facilities like new buildings for school, the Company helps

establish computer education programs for school children. The Srinivasan Services Trust has

successfully achieved 98% primary school enrollment in the adopted villages

8. Changing Technology when needed

After the controversial legal duel with Bajaj Auto on ignition technology, the Chennai-based

two-wheeler manufacturer TVS Motors,launched its 125cc motorcycle 'Flame' with a new and

modified engine. The company incorporated a single-spark ignition engine based on controlled

combustion variable timing intelligent (CC-VTi) technology.

The engine has been developed and patented by Austria-based AVL and has been licensed to

TVS in India. AVL is the world leader in internal combustion engine technology and develops

power train systems. It is a leading provider of technology to the global engine and automotive

industry.

The 125cc segment has blurred the line between the 100cc and 125cc segments and it has been

reckoned as the new entry level of the bike riders, considering the element of youth and style

attached to it. TVS Motors, considering this approach and segment and its increasing wide

acceptance, has pitched ‘Flame’ against the current rage, ‘Bajaj Exceed’.

It is the combination of two factors, which would determine the acceptance of Flame. First, it is

the time and then there are the features. ‘Flame’ comes with the already accepted single-spark

ignition. It's launch was to coincide with the ‘Exceed’. However, due to a legal duel with Bajaj

84
Auto, its launch was delayed. And in this span, the Exceed has been branded and promoted as a

motorcycle having premium features (mileage-108km and disc breaks). Hence, a lot would

depend on the company’s branding strategy and Flame’s fight with the features present in the

Exceed (almost of a 150cc bike).TVS Motors’s OPM has been hovering around 4-5%.

Due to a slump in the sector, its sales have been dipping, bringing about a sharp decline in its

NPM which decreased in September 2007 from 1.41%, to 0.65 % in the December 2007 quarter.

TVS posted a net profit of Rs 5.83 crore for the quarter-ended December 31, 2007 as compared

to Rs 11.46 crore in the quarter-ended December 31, 2006.

9. Launch goods carrier, gearless scooter

(IANS) City-based TVS Motor Company Ltd will soon get into commercial vehicle segment,

said a top official here Sunday. Talking to reporters after launching TVS King 200cc three-

wheeler, company chairman Venu Srinivasan said: “Next year we will launch a sub-one-tonne

goods carrier. A diesel-powered three-wheeler will also be launched.”

He also said the company would launch a gearless scooter, a segment that is logging growth even

when the motorcycles are registering slide in sales.

“We are targeting 30 percent market share in eighteen months time. The market size is around

1.8 million units per year,” said H.S. Goindi, senior vice-president, international business and

three-wheelers, TVS Motors.

85
According to Srinivasan, the three-wheeler is expected to beef up the top line by Rs.2 billion in

the coming year, selling around 30,000 units.

Apart from the domestic market, TVS Motor will also export its TVS King to countries like Sri

Lanka, Bangladesh, Latin America, Nigeria and others.

“The impact on the bottom line is difficult to quantify now,” Srinivasan added.

The Deming medal-winning company, which has a turnover of Rs.39.28 billion ($969 million),

has invested around Rs.1.2 billion in developing its two-stroke three-wheeler in three versions -

petrol, LPG and CNG.

“There is lot of commonality of components between our three-wheeler and two-wheeler

engines. There will be around five-seven percent cost savings due to common parts,” Srinivasan

said.

As the sales of three-wheeler is largely dependent on the state government policy of issuing

passenger carrying vehicle permits, Giondi said the company would work with various state

governments to clear any misconceptions about this vehicle segment.

TVS Motor is also wooing the auto rickshaw driver community with slew of incentives.

The company is offering a free personal accident-cum-health insurance for the owner and his

family (self, wife and three children) by paying the first year premium of Rs.264.

The personal accident insurance cover will be for Rs.100,000 and the health insurance cover will

be for Rs.30,000.

86
Asked about using 200cc engine in TVS King while many others make similar vehicle with

150cc engines, Goindi said: “The cities are becoming bigger and there are more flyovers. It is

time that three-wheelers are powered by high power engines.”

The on-road price of TVS King ranges between Rs.90,000-Rs.130,000 depending on the variant.

Asked about the possible impact the small cars could make on the three-wheeler sales,

Srinivasan said: “We don’t foresee any impact on three-wheeler sales owing to the entry of Tata

Nano or other cars.”

Earlier, Tamil Nadu’s Local Administration Minister M.K. Stalin launched TVS King by

handing over the keys to two buyers.

Appreciating TVS Motor for its impressive growth from a Rs.1 billion turnover company in

nineties to its current position, Stalin said the state was progressing well in its industrialisation.

10. Taking women on a ride

THE automobile industry is in a sudden rush to cater to the transportation needs of the fairer sex.

Vying with one another, the current bunch of scooterette manufacturers and potential players are

trying to roll out products for women across age groups as their central focus.

The special requirements of two-wheeler riding women; the features that will help ease their

riding experience; and accessories that can be showcased as unique selling propositions are now

driving innovation in designing scooterettes for this burgeoning class of riders.

87
Women were always in the radar for manufacturers of these two wheelers, but only they were

not projected as the primary focus. This was the case with the marketing strategies that Bajaj and

Kinetic had adopted for the earlier versions of the Safire and the Zing respectively.

The primary targets for these two-wheelers were college-going students, middle-income

households and men and women alike. Now, with the category showing signs of growing faster

than the other two-wheeler segments and with the growth coming from the surge in purchases by

women, manufacturers such as Bajaj, TVS Motor and Kinetic are keen on rolling out the red

carpet to woo the divas.

And, so, after revamping its scooterette, Bajaj has now relaunched the Safire as the new Wave

and also come out with the new `when-you-are-happy-and-you-know-it' advertising campaign to

attract women buyers. The new Wave is easier to ride, more powerful and, yet, more fuel-

efficient and has attributes that are women-friendly.

This partly redesigned scooterette that is also more trendy and good looking irons out some of

the nit-picky engine and transmission problems that had bugged the erstwhile Safire.

Not to be left behind, both Kinetic and TVS have now launched new, snazzier variants of their

scooterettes and will try to hit back at Bajaj's attempt at a comeback into the premium scooterette

segment.

88
Small Kinetic

Of the two, though, Kinetic's Kine (a.k.a. Zing 80) only features cosmetic enhancements that

give the scooterette new looks and a marginally better finish than the Zing 80, on which it is

based. It continues to feature the same 71.5cc, two-stroke engine that puts out a maximum power

of 4.2 bhp and a peak torque of 5.7 Nm. The kerb weight of the Kine is a feather-light 82 kg and

fuel tank capacity is four litres.

The additions and special features in the Kine is the new three-tone colour that gives the

scooterette sportier looks and further highlights its design lines, the cola-can holder in the front,

mobile charging point in the under-seat storage area, puncture-resistant tyres and the new

headlamp. Some of these, such as the mobile charging point and can-holder, were also available

in the Zing and these have been retained based on customer feedback, according to Kinetic.

89
Kinetic has also used feedback from customers to come up with the new name — `Kinetic'. The

idea behind the new name being that for many years the good old Kinetic was being referred to

(by users themselves) as `Kinetic' — a nickname that the vehicle acquired on its own.

Kinetic's research is also said to have shown that `Kinetic' as a word in itself has many

characteristics of a popular brand, including instant recall and identification. As this scooterette

is a smaller, lighter package with a lower price tag, Kinetic has decided to make it into a full-

fledged brand of its own.

Peppy plus

Unlike the Kinetic, which features cosmetic changes, the new TVS Scooty Pep+'s alterations run

deeper. For one, the new Pep+ sports a brand new, more powerful 90cc four-stroke engine that

delivers a peak power of 5 bhp and a peak torque of 5.8 Nm.

The engine feels refined and is said to be peppier compared to its 75-cc predecessor, which will

continue to be available in the Scooty Pep.

Dual tone colours and new racy graphics adorn the new Scooty Pep+'s body panels; a new stylish

dash with an easy-reading speedometer cluster and a fresh new range of body colours has been

added. The new Scooty Pep+ also gets a few neat touches that should make it more likeable for

women riders.

The LED lighting in the under-seat storage area, the cell-phone charger below the dashboard, the

fluorescent ignition key slot for better visibility at night and the innovative, patented centre-stand

design with extra leverage that makes parking the scooterette a breeze, will all be features that

90
will not only be appreciated by women of all age groups, but also by the men folk, who will

invariably also be the users of this scooterette.

The Bajaj Wave's advertising overtly focuses on women riders, but its other communication

material and the scooterette's actual attributes do not reflect that specific focus.

Unlike the Bajaj, the TVS Scooty Pep and new Pep+ clearly focus only on the growing

population of women two-wheeler users, though market research has showed that about 35 per

cent of the current users are men.

The Scooty Pep's brand ambassador is Preity Zinta and the new ad campaign for the Pep+ will

attempt to focus on the improved power and playfulness of the new version. Kinetic, meanwhile,

will continue to position the Kine (like it did for the Zing) as a practical, fuel-efficient and

attractive two-wheeler for the college-going public.

The new TVS Scooty Pep+ has been priced at about Rs 33,000, ex-showroom in Chennai. The

new Kine, on the contrary, will be available for about Rs 5,000 lesser, but will not be able to

offer similar build and finish quality and as many features as the TVS Scooty Pep+.

Fuel efficiency numbers, however, are unlikely to be much different between the two at about 50 kmpl

(in city conditions), despite the Kine's two-stroke engine.

91
 OBJECTIVE OF THE STUDY

1. The objective of the study is to analyze the customer buying behavior of the

respondents in motorbikes of different brands.

2. To study the future prospects of TVS Motorbikes

3. To provide a fair picture of technology used by TVS Motors

4. To study the sales trend of TVS Motors

5. To analyze the quality of after sales services being provided by TVS Motors

92
 SCOPE OF STUDY

This project report is proven to be relevant and important in various aspects related to the topic—

“MARKETING STRATEGIES OF TVS BIKES”. It provide the details of the term marketing

strategies that is, How it came into existence, its relevancy in the organization and for the

employee, What all benefits it provide, What process is followed for implementing marketing

strategies and to what extent it is efficient, effective and satisfactory.

93
 REVIEW OF LITERATURE

Research conducted by Cuthbertson&Bridson (2006) highlights the specific marketing strategies

employed by retailers to increase customer loyalty. The research presents the internet as a

potential medium of driving loyalty in the consumers.

Fiorito&Laforge (1984) on the other hand have conducted a research on smaller retailers and

what kind of marketing strategies they have employed to stay competitive in the retail industry.

The two types of marketing strategies which are highlighted in the research as being commonly

used by small retailers pertain to integrated marketing strategy and differential marketing.

(Parsons, 1992). The focus of the companies in the retail industry is to effectively market and

differentiate themselves while providing the customers with what they demand. “The mission

now is ruthless efficiency, eliminating the losers and refocusing budgets on genuinely profitable

activities”

A study conducted by McMaster (1987), highlighted the importance of market strategies

pertaining to branding which aid the retail business to initiate growth and positioning for itself in

the market. Another significant research study which contributes to the knowledge available for

the retail industry pertains to the different operations of the retailers in terms of the services they

provide to niche markets.

94
The limited service offering and marketing strategy for catering to niche markets is analyzed by

Campo & Gijsbrechts (2004), who state that supermarkets should adjust their product and service

offerings according to the locality in which they are operating. This enables them to customize

their service for the customers employ loyalty and community support based marketing

strategies.

(Cronin, 1985). “The study concludes that sales growth has been the marketing strategy

demonstrating highest affinity to profit performance. Apart from this, increase in market share,

capital-to-labor ratios, and the average inventory level are keys to evaluating and selecting retail

marketing strategies which promise high profitability.”

95
 IMPORTANCE OF STUDY

A marketing strategy is something that every single business; no matter how big or small, needs

to have in place. Many business owners are hesitant to set up an actual marketing strategy

because they simply don’t know how to do it.

For a truly effective marketing strategy, you must study and evaluate your business and its target

audience, then create a plan of action and follow through with it.

The first part of your business that you will need to evaluate is the actual business that you’re in.

This means looking at your business from a customer’s or end user’s point of view and finding

what they truly get out of your company.

Once you’ve discovered what customers are really getting from your business, you can then ask

yourself who your ideal customer is, or in other words, looking at the demographics of

your customer base. Are you trying to attract customers that are homeowners, other businesses,

or teenagers? While a plumbing business might focus on homeowners, companies that

supply video games might focus on teenagers. It can’t be said enough how important it is to

know who your target audience is, and how you can best appeal to them.

The next part of creating a great marketing strategy is finding out what your company offers that

no other company does. While you’ll definitely want to advertise the fact that you sell a certain

96
product or service, there are probably many other companies that offer the same thing for

customers to choose from. So to set yourself apart, you must also advertise the thing that makes

your company special – the magic that no other company has. So whether you offer the lowest

prices, the best customer service, or promotions whenever customers shop at your store, this

must not only be included in your marketing strategy, but it must be a part of every aspect of

marketing you do. Just make sure that whatever magic your promising your customers, that you

can deliver on it.

A good marketing strategy is essential for every business to have. This will give you a clear

direction as to where you should go with your marketing efforts, and will give you a better

understanding of what marketing methods are going to reach your customers in the exact manner

that you were hoping for.

97
 RESEARCH METHODOLOGY

Research Methodology is a systematic way, which consists of series of actions or steps necessary

to effectively Heavy vehicle out research and the desired sequencing of these steps. The

marketing research is a process of involves a number of inter-related activities, which overlap

and do rigidly follow a particicular sequence. It consists of the following steps

1. For TVS the objective of the study

2. Designing the methods of data collection

3. Selecting the sample plan

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings

98
 Objective of Study

Research Design

Sample Design

Data Collection

Data analysis

Reporting of Findings

99
 RESEARCH DESIGN

Research Design specifies the methods and procedures for conducting a particular study. A

Research Design is the arrangement of conditions for collection and analysis of the data in a

manner that aims to combine relevance to the research purpose with economy in procedure.

Research Design is broadly classified into three types as

 Exploratory Research Design

 Descriptive Research Design

 Hypothesis testing Research Design

On the basis of the objective of study, the studies which are concerned with describing the

character tics of a particular individual, or of a group of individual under study comes under

Descriptive Research Design.

Descriptive Research Design: In this research design the objective of study is clearly defined

and has accurate method of measurement with a clear cut definition of population which is to be

studied.

ForTVSating the research problem

Two steps are involved in forTVSating the research problem:

 Understanding the problem

 Rephrasing the problem into meaningful terms from an analytical point of view.

The training sessions are conducted in the beginning of training in order to make

us clear about the task provided and how to handle the different situations.

100
PREPARING THE RESEARCH DESIGN

The research design is developed to collect the relevant information with minimum of efforts,

time and money.

 Type of Study: Descriptive.

 Research Area: Ghaziabad.

 Source of Information: Primary Data and secondary data

 Data Collection Instrument: Questionnaires & Personal Interview.

 Research Approach: Survey Method.

101
SAMPLING DESIGN

A Sample Design is a definite plan for obtaining a sample from a given population. It refers t the

technique the procedure adopted in selecting items for the sample. The main constitution of the

sampling design is as below-

1. Sampling Unit

2. Sample Size

3. Sampling Procedure

SAMPLING UNIT

A sampling framework i.e. developed for the target population that will be sampled i.e. who is to

be surveyed.

 Customers

SAMPLE SIZE

It is the substantial portion of the target population that are sampled to achieve reliable results.

200--------RESPONDENT (Customer)

SAMPLING PROCEDURE

The procedure to choose the respondents to obtain a representative sample, a non-probability

sampling technique is applied for the target – market.

102
Non-Probability Sampling

It is a purposive sampling which deliberately chooses the particular units of the universe for

constituting a sample on the basis that the small mass that they so select out of a huge one will be

typical or representative of the whole.

Judgment sampling: To select population members who are good prospects for accurate

information?

103
 DATA COLLECTION

The data collection process is the predefined task that I have to undergo. The data collection

process starts right from the first day till the final day on the field. During the whole period a list

of different retailers scattered around whole of the South Lucknow gets visited on the regular

basis. The main task is to analyze the market potential, study of the market share of the company

and analyzing the competitor’s strategies.

The survey process is not complete without consulting the Distributor & Retailers. The

distributors are the key nodes that make the chain moving effectively. So the response made by

them is also an essential criterion to involve and reaching for certain decisions.

There are several ways of collecting appropriate data that differ considerably in the

context of money costs, time, and other resources at the disposal of the researcher. The tools

used for data collection are as:

PRIMARY DATA

The primary data are those data, which are collected afresh and for the first time. And happen to

be original in character. The primary data to be collected for the study are-

 Questionnaire – A set of questionnaire is prepared for the cause of collecting

different information related to the pre-determined objectives. The questionnaire

prepared is in two forms & targeted towards the doctors and chemists differently.

The format of questionnaire is structured and non-disguised.

 Direct Personal Interview – Under this method of collecting data there is face-

to-face context with the person from whom the information is obtained. The data

collected are from the respective selected doctors and chemists visited regularly.

The pattern used is Structured and Indirect Interview.

104
SECONDARY DATA

Secondary data means data that are already available i.e., they refer the data, which have

already been collected and analyzed by someone else. When the researcher utilizes secondary

data, then he has to look into various sources from where he can obtain them, IN this case he is

certainly not confronted with the problems that are usually associated with the collection of

original data. Secondary data may either be published data or unpublished data. Usually

published data are available in:

 Various publications of the central, state and local governments;

 Various publications of foreign government or of international bodies and their

subsidiary organization;

 Technical and trade journals:

 Books, magazines and newspapers;

 Reports and publications of various associations connected with business and industry,

banks, stock, exchanges etc.;

 Reports prepared by research scholars, universities, economists etc. In different fields,

and

 Public records and statistics, historical documents, and other sources of published

information. The sources of unpublished data are many; they may be found in diaries,

letters, unpublished biographies and autobiographies and also may be available with

scholars and research workers, trade associations, labor bureaus and other public/private

individuals and organizations.

105
DATA ANALYSIS AND

INTERPRETATION

106
 PERSONAL INFORMATION

Name :

Address :

Q.-1: Do you have bike?

Options No. of Respondents

Yes 150

No 50

INTERPRETATION: When I asked this question from 200 people then 75% people
said that they have bike and rest people said that they dont have a bike.

107
Q2. Do you have TVS bike?

Options No. of Respondents

Yes 100

No 50

INTERPRETATION: When I asked this question from people then 67% people said
that they have TVS bike and rest people said that they don not have a TVS bike.

108
Q3. How did you come to know about the TVS bike?

Options No. of Respondents

Family 10

Friends 20

Office 5

Newspapers 50

others 15

INTERPRETATION: When I asked this question from people then 50% people said that
they come to know about TVS bike from have bike and rest people said that they dont have a

bike from newspaper and 10% family and 20% friend 5% office and 15% from others.

109
Q4. According to you, which factors are that influence a purchase decision of bike?

Options No. of Respondents

looks 20

safty 20

mileage 40

price 15

others 5

INTERPRETATION: When I asked this question from people then 40% people said that

mileage have a great influence to purchase a bike and 20% safety , 15% price 20% looks and 5%

others.

110
Q5. How long you have been using the tvs bike?

Options No. of Respondents

More than three 50

Two to three years 10

One or two years 20

Less than one years 10

INTERPRETATION: When I asked this question from people then 56% people said that
they are using TVS buke from more than three years and 22% people said that from one to two

years and 11% more than three years and 11% less than one years.

111
Q6. Are you satisfied with the tvs bike?

Options No. of Respondents

Yes 70

No 30

INTERPRETATION: When I asked this question from people then 70% people said
that they are stisfy with TVS bike and 30% people said that they are not satisfy with this bike.

112
7. How much you satisfied with the services of TVS service stations?

Options No. of Respondents

High satisfied 50

Some what 25

To an extent 15

Dis satisfied 10

INTERPRETATION: When I asked this question then 50% people were highly

satisfy with the service station of TVS bike, and 25% were some what stisfy and 15% were

extent and 10 were dissatisfy.

113
Q8. After having a drive on your TVS Heavy vehicle how do you feel?

Options No. of Respondents

Exiting 50

Safe drive 25

Can’t say 15

Facingsome 10

problem

INTERPRETATION: When I asked this question from respondents then 50% people said
that they feel exiting during the driving and 25% said safe driving , 10 said ,face some problem

and 15% said that they can not say.

114
Q-9: What facility you want with TVS?

Options No. of Respondents

Insurance facility 60

After sale service 30

More access 5

other 5

INTERPRETATION: When I asked this question from respondents then 60% people

said that they want insurance facility,30% people said that they want after sale services,5% said

that more access and 5% can not say.

115
Q10. Do you recommending your relatives or others to go for purchasing your vehicle.

Options No. of Respondents

Yes 60

No 40

INTERPRETATION: When I asked this question from respondents then 60% people

said that they are recommending to relatives for purchasing tvs bike and 40% said that they are

not recommending for this bike.

116
Q11. Which factors do you like in TVS vehicle?

Options No. of Respondents

Interior/extrioer 20

Safty 20

mileage 40

Powerfull engine 15

Others 5

INTERPRETATION: When I asked this question from respondents then 40% people
said that they like bike mileage in tvs bike , 20% said safety , 20% interior/exterior, 15% said

powerful engine and 5% said others things.

117
Q12. Any promotional scheme offering by TVS at purchase time?

Options No. of Respondents

Yes 80

No 20

INTERPRETATION: When I asked this question from respondents then 80% people
said that some promotional schemes offering by tvs at purchase time, and 20% said that no.

118
 FINDINGS

1-Mostly people wanted to purchase a highly mileage bike ,due to the rise in the cost of petrol.

2- Promotion strategy of bike should be wide in the area of news paper and televisions and

billboard, because mostly people come to know about the bike by this medium.

3- Mostly people were satisfy with the TVs bike but some people wanted advance technology in

the bike.

4- Mostly people wanted insurance facilities and after sale services during the purchase of bike.

119
 LIMITATIONS

This project may not fulfill all the expectations of the reader because it faced certain limitations

which are as follows:

1) In sonic cases the respondents may be biased, this is a frequently occurring error in market

research. Adequate sale guards have been provided for the same so as to minimize such

errors (to be sure or it we crushed checked the responses in the due course or every

interview).

2) The information provided by the various corporate offices are limited subject to the

information revealed sonic points may be Missing.

3) Vie study was continued to Lucknow city with comparatively high living standard but

summers busy road. Hence Heavy vehicle must he taken applying these results to other

cities.

4) The details of the recommended pattern of the corporate customer behaviour have not

been worked out.

120
 CONCLUSION

 TVS Motor Company is one of the leading bike manufacturers in India. The major

conclusion from this study was that TVS has to improve itself to gain the first position in

the market as it is doing well to maintain its third position in the market.

 In terms of competition, TVS has nick-to-nick competition with Hero Honda and Bajaj.

TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in

India.

121
 RECOMMENDATIONS

1. MILEAGE: The company is not consistent as for the mileage is concerned. Some of the

people are quite satisfied while some arc not all satisfied extensive communication is thus

needed to overcome this problem.

2. PICK UP: TVS Heavy vehicle is very poor especially while the heavy load is oil

improvement on the technical aspects should he performed.

3. COST OF SPARE PARTS: The spares Parts of TVS are more expensive as compared to

the competitors people arc not much aware of the out lets. An effective advertising in this

respect is needed.

4. COMMUNICATION: Communication improves customers and dealer this is creating a

big to gap between the customers and the company.

5. ADVERTISING: The advertising policy or the company is not very food so that

improving advertising in the company these are the suggestions which throws light on the

weaknesses of the company and where the company needs to give attention the market dept.

Needs to give more attention and position the Heavy vehicle again so that the customer

loyalty towards the company can be ascertained.

122
 BIBLIOGRAPHY

Marketing Research (Author- C.R.KOTHARI)

Marketing Management (Author- Rajan Sexana)

(Publish by Tata McGraw Hill Publishing Co. LTD, New Lucknow)

Second Edition (2001)

Marketing Management (Author- Philip Kotler)

(Publish by Preen Tice-hall of India PVT. LTD., New Lucknow)

Ninth Edition (2002)

WEB SITES:

www.TVS.com

www.indianHeavy vehicle.com

123
 ANNEXTURE

Personal Information

Name :

Address :

Q.-1: Do you have bike?

a. Yes [ ]

b. No [ ]

Q2. Do you Have TVS bike?

a. Yes [ ]

b. No [ ]

Q3. How did you come to know about the TVS bike?

a. Family [ ] b. Friends [ ]

c. Office [ ] d. T.V. [ ]

e. Newspapers [ ] f. Magazines [ ]

Q4. According to you, which factors are that influence a purchase decision of bike?

a. Exterior style [ ] b. Comfort [ ]

c. Safety [ ] d. Price [ ]

e. Mileage [ ] f. Pickup [ ]

g. Technology [ ] h. Powerful Engine [ ]

i. Interiors [ ] j. Brand Name [ ]

124
Q5. How long you have been using the tvs bike?

a. More than three years [ ]

b. Two to three years [ ]

c. One to two years [ ]

d. Less than one years [ ]

Q6. Are you satisfied with the TVS bike?

a. Yes [ ]

c. No [ ]

Q7. How much you satisfied with the services of TVS service stations.

a. Highly Satisfied [ ]

b. Some what satisfied [ ]

d. Some what dissatisfied [ ]

e. High Dissatisfied [ ]

Q8. After having a drive on your TVS Heavy vehicle how do you feel?

a. Exciting [ ] b. Safe drive [ ]

c. Can’t say [ ] d. Facing some problem [ ]

125
Q-9: What facility you want with TVS?

a. Insurance facility b. After sale service for more time

c. More accessories d. Other scheme

Q10. Do you recommending your relatives or others to go for purchasing your vehicle.

a. Yes [ ]

b. No [ ]

Q11. Which factors do you like in TVS vehicle?

a. Mileage [ ]

b. Interior/ Exterior [ ]

c. Low Maintenance [ ]

d. Safety [ ]

e. Powerful Engine [ ]

Q12. Any promotional scheme offering by TVS at purchase time?

a. Yes [ ] b. No [ ]

126