GCRG Memorial Trust's Group of Institutions, Lucknow

Faculty of Management

A Summer Training Project Report

on

“MARKET RESEARCH AND PROMOTION OF TVS SCOOTY”

Submitted for partial fulfillment for award of

Master of Business Administration

Degree

SUBMITTED TO

MR. PASHUPATI NATH VERMA

SUBMITTED BY

RUBINA KHATOON

Roll-1362070049

UNIVERSITY OF LUCKNOW, LUCKNOW, INDIA

2014-2015

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ACKNOWLEDGEMENT

Co-operation and building up of moral are the essence of success. These are two factors that go a long

way in achieving it. It is a Herculean task, which lacks these two determinants of success. Summer

training was an exposure to corporate environment. It was an opportunity and great pleasure for me to

be in such an environment and having interaction with concerned people.

I express my deep sense of gratitude to our Respected H.O.D Mr. Pashupati Nath Verma. ‘‘G.C.R.G.

Memorial Trust’s Group of Institutions” for providing me this opportunity to undergo summer training

as per their summer internship program.

I express my heartily respect and profound thanks seniors for their enlightening and meticulous

guidance for the consummation and evaluating of this project.

Finally, to my parents, for all the care and support with which they overwhelmed me through long

months of compiling the report.

I sincerely hope that my first venue in this field is appreciated. Offering thanks.

RUBINA KHATOON

Roll no.-1362070049

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DECLARATION

I hereby declare that the project report entitled “Market Research And Promotion Of TVS

Scooty”. in partial fulfillment of requirements for the degree of Master of Business

Administration to Institute of management, Luc know is my original work and not submitted

for the award of any other degree, diploma, fellowship or any other similar title or prizes.

RUBINA KHATOON

Roll no.-1362070049

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CERTIFICATE

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Table of Content

Particular Page No.

ACKNOWLEDGEMENT

DECLARATION

CERTIFICATE

TABLE OF CONTENT

PREFACE

PART-I

1. INTRODUCTION TO THE COMPANY

1.1 Company Profile

1.2 Major Competitor

1.3 Recent Problem Faced by Company.

PART-II

2. INTRODUCTION & DESIGN OF STUDY

2.1 Introduction to the problem

2.2 Review of Literature

2.3 Objective of the Study

2.4 Research Problem

3. RESEARCH METHODOLOGY

3.1 Research Objective

3.2 Research Hypothesis

3.3 Research Design

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3.3.1 Sampling Design

3.3.2 Data Collection Design

4. DATA COLLECTION & FIELD WORK

4.1 Data Editing

4.2 Data Coding

4.3 Coded Data

5. DATA ANALYSIS & INTERPRETATION

5.1 Graphical Representation

5.2 Data Analysis: Different Measures

5.3 Data Analysis: Test of Hypothesis

5.4 Interpretation of Research Findings

6. FINAL REPORT

6.1 Results

6.6. Conclusions

6.7. Limitation

6.8. Further implications

7. APPENDED PARTS

7.1 Data Collection Forms

7.2 Bibliography

7.3 …………….

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PREFACE

Someone has rightly said that practical knowledge is far better than classroom

teaching. During this project I fully realized this and I came to know about how a

consumer chooses among a varied range of products available to him. The

subject  of  my  study  is  market  survey  of  customer buying behavior in bikes

taking TVS for comparison, which has slowly but steadily evolved, from a

beginner to a corporate giant earning laurels and kudos throughout. The report

contains first of all brief introduction about the company. Finally there comes

data presentation and analysis in the end of my report. I also put forward some of

my suggestion hoping that they help TVS Motor Company move a step forward

to being the very best.

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PART -I

INTRODUCTION

INTRODUCTION OF TWO WHEELER INDUSTRY

Automobile is one of the largest industries in global market. Being the leader

in product and process technologies in the manufacturing sector, it has been

recognized as one of the drivers of economic growth. During the last decade, well

directed effort shave been made to provide a new look to the automobile policy

for realizing the sector's full potential for the economy. Aggressive marketing by

the auto finance companies have also played a significant role in boosting

automobile demand, especially from the population in the middle income group.

Two-wheeler segment is one of the most important components of

the automobile sector that has undergone significant changes due to shift in

policy environment. The two-wheeler industry has been in existence in the

country since 1955. It consists of three segments viz. scooters, motorcycles and

mopeds. In India there are some MNC’s and Indian company dealing in

automobile sector. The main key players who are dealing in this sector are Hero,

Bajaj, Yamaha, Honda, and TVS.

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Global two wheeler market – 2012

Two-wheelers to remain the preferred option over Cars –The ownership

and maintenance cost of a car is 4 times of a two wheeler  –Two wheelers deliver

a superior mileage of 70kmpl as compared to 22kmpl of the cars. –Mileage is a

key factor influencing buying behavior.

Size of the total market: 43 million numbers

Two-wheelers Purchase Trend-

Growing working population

Increased access to credit and lower interest loans

Increased consumer embrace of financial products

Upward migration of household income levels

Fast paced urbanization to rise from 28% to 40% by 2020

Middle class expanding by 30 - 40 million every year

 

India is on every major global automobile player's roadmap and it isn't hard to

see why:

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India is the2nd largest two-wheeler marketin the world,

4th largest commercial vehicle market in the world

11th largest passenger car market in the world and is

Expected to become the 7th largest by 2016.

Two-wheelers on a roll

The demand drivers for the two-wheeler industry are

High growth in service sector @ 9%

Favorable demographics – a young population, rising house-holdincomes,

increasing literacy levels

Faster introduction of new models

Increasing replacement demand (from 6 to 3 years)

Absence of effective public transport.

Increased availability of low cost retail finance (more than 1500locations)

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The key factors emerging are:-• Target audience for two-wheelers is huge.• 140

mn people will be added to the working population in the next 5 years time. Two-

wheelers to remain the preferred option over Cars

 – 

The ownership and maintenance cost of a car is 4 times of a two wheeler – Two

wheelers deliver a superior mileage of 70kmpl as compared to 12kmpl of the

cars – Mileage is a key factor influencing buying behavior.

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TV Sundaram Iyengar and Sons Limited (TVSs)

 

TVS Motors is the second largest company in the two-wheeler industry with a

market share of 16%. Infect, it is the only Indian company without a foreign

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collaboration in the two-wheeler industry. When the company opted out of the

collaboration with Suzuki in 2002, many believed that TVS was headed towards

extinction. But the company proved the doomsayers wrong and came out with a

very successful 

`TVS SCOOTY'. TVS Motors Ltd. originally incorporated in 1982 to

manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS

was one of the leaders in two-wheeler industry. It is the holding company for the

TVS Group of companies engaged in the manufacturing of various automotive

components, two wheelers and a few other industrial products. They are also into

the financial services sector. The turnover of the entire group was close to $2

billion in 2011.TVS was founded by T. V. Sundaram Iyengar in 1911.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. The TVS group of companies is mainly situated in Padi,

Tamil Nadu, in the outskirts of Chennai (formerly Madras) Type Private 

Conglomerate  (BSE) Founded in  1911  by  Shri. T  V  Sundaram Iyengar Head

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quarters Chennai, Tamilnadu, India Key people Mr.Venu Srinivasan Chairman

Products Motorcycles, Mopeds, Ungeared scooters,  Automotive components

Revenue USD 3.2 billion (FY 2011)

Employees5,633 (2010)Website www.tvsmotor.in

The Vespa was the first globally popular scooter.

A scooter is a motorcycle with step-through frameand a platform for the

operator's feet. Elements of scooter design have been present in some of the

earliest motorcycles, and motorcycles identifiable as scooters have been made

from 1914 or earlier. Scooter development continued in Europe and the United

States between the World Wars.

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The global popularity of scooters dates from the post-World War II introductions

of the Vespa and theLambretta. These post-war scooters were intended to provide

low-power personal transportation (engines from 50 to 250 cc). The original

layout is still widely used in this application. Maxi-scooters, with engines from

250 to 850 cc have been developed for Western markets. Scooters are popular for

personal transport, partly based on their low cost of purchase and operation and

on benefits that include convenience in parking and storage. Licensing

requirements for scooters are easier and less expensive than those for cars in most

parts of the world, and insurance is generally cheaper.

PREDECESSORS TO THE SCOOTER

Scooter-like traits began to develop in motorcycle designs around the 1900s. In

1894, Hildebrand & Wolfmüller produced the first motorcycle that was available

for purchase. Their motorcycle had a step-through frame, with its fuel tank

mounted on the down tube, its parallel two-cylinder engine mounted low on the

frame, and its cylinders mounted in line with the frame. It was water-cooled and

had aradiator built into the top of the rear fender. It became the first mass-

produced and publicly-sold powered two-wheel vehicle, and among the first

powered mainly by its engine rather than foot pedals. Maximum speed was

40 km/h (25 mph). The rear wheel was driven directly by rods from the pistons in

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a manner similar to the drive wheels of steam locomotives. Only a few hundred

such bikes were built, and the high price and technical difficulties made the

venture a financial failure for both Wolfmüller and his financial backer,

Hildebrand.[15]

In France, the Auto-Fauteuil was introduced in 1902. This was basically a step-

through motorcycle with an armchair instead of a traditional saddle. Production

continued until 1922.[16]

Predecessors to the scooter

1894 Hildebrand & Wolfmüller motorcycle 1908 Auto-Fauteuil

motorcycle

First generation (1915–1930)

The Motoped entered production in 1915, and is believed to be the first motor

scooter. They were followed that year by the Autoped, whose engine was

engaged by pushing the handlebar column forward and whose brake was engaged

by pulling the column back. Autopeds were made in Long Island, New

York from 1915 to 1921, and were also made under licence by Krupp in

Germany from 1919 to 1922.

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The number of scooter manufacturers and designs increased after World War I.

The Skootamota, the Kenilworth, and the Reynolds Runabout debuted in 1919,

with Gloucestershire Aircraft Companyfollowing with its Unibus in 1920. The

Skootamota was noted for being practical, popular, and economical, the

Kenilworth for its electric lights,[citation needed] and the Reynolds Runabout for

its advanced specifications, including front suspension, a two-speed gearbox, leg

shields, and a seat sprung with leaf springs and coil springs. The Unibus also had

a two-speed gearbox, but it is more notable for its full bodywork, similar to that

which would appear of second- and third-generation scooters.

The reputation of first-generation scooters was damaged by a glut of unstable

machines with flexible frames, and more substantial examples like the Reynolds

Runabout and the Unibus were too expensive to be competitive. The first

generation had ended by the mid 1920s.

First generation scooters, 1915–1930

1919 Autoped Ever Ready ABC Skootamota, designed by Granville

Bradshaw

 

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1921 Kenilworth scooter

Second generation (1936–1968)

E. Foster Salsbury and Austin Elmore developed the Salsbury Motor Glide, a

scooter with a seat above an enclosed drivetrain, and began production in 1936 in

California. In 1938, Salsbury introduced a more powerful scooter with

a continuously variable transmission (CVT). This was the first use of a CVT on a

scooter. It was such a success that Salsbury attempted to license the design to

several European manufacturers including Piaggio. The Motor Glide set the

standards for all later models. It inspired production of motor scooters by Powell,

Moto-scoot, Cushman, Rock-Ola, and others.

The Cushman Company produced motor scooters from 1936 to 1965. Cushman

was an engine manufacturer that started making scooters after Salsbury found

their offer to supply engines to be unacceptable. Cushman and Salsbury

competed against each other, with both companies advertising the economy of

their scooters. Cushman claimed an efficiency of 120 miles per gallon at 30 mph.

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Cushman introduced a centrifugal clutch to their scooters in 1940. The Cushman

Auto Glide Model 53 was designed to be dropped by parachute with Army

Airborne troops, and was eventually called the “Cushman Airborne”. Cushman

scooters were also used around military bases for messenger service.

Salsbury continued manufacturing scooters until 1948, while Cushman continued

until 1965.

Small numbers of the 165 cc Harley-Davidson Topper scooter were produced

from 1960 to 1965 using the engine from their line of light motorcycles based on

the DKW RT 125. It had a fiberglass body, acontinuously-variable transmission,

and a pull-cord starting mechanism.

Second generation scooters, USA, 1936–1965

Typical Cushman scooter, 1948 Salsbury Model 85 scooter, in

the middle

 

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Harley-Davidson Topper

Third generation (1946–1964) and beyond

1952 Lambretta 125 D

In post-World War II Italy the Piaggio Vespa became the standard for scooters,

and has remained so for over 60 years. Patented in April 1946, it used aircraft

design and materials. D’Ascanio's 98 cc scooter had various radical design

concepts, including a sleek, stress-bearing structure. The gear shift lever was

moved to the handlebars for easier riding. The engine was placed near the rear

wheel, eliminating the belt drive. The typical fork support was replaced by an

arm similar to an aircraft carriage for easier tire-changing. The elegantly-styled

body protected the driver from wind and road dirt, and bore little resemblance to

uncomfortable and noisy motorcycles. The smaller wheels and shorter wheelbase

provide improved maneuverability through narrow streets and congested traffic.

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Combining the best elements of automotive, aeronautical and motorcycle design,

the Vespa quickly became an icon of design and economy. The name reportedly

originated when Piaggio's president upon seeing the prototype,

remarked "Sembra una vespa", "It looks like a wasp".

 

1954 DKW Hobby 1955 Dürkopp Diana

 INDIA

Bajaj Chetak

In India, Bajaj Auto manufactured its line of scooters from 1972 to 2009, which

included the Chetak, Legend, Superand Priya. The Chetak and Legend were

based on the Italian Vespa Sprint. It was discontinued in 2009.

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Another Vespa partner in India was LML Motors. Beginning as a joint-venture

with Piaggio in 1983, LML, in addition to being a large parts supplier for

Piaggio, produced the P-Series scooters for the Indian market. In 1999, after

protracted dispute with Piaggio, LML bought back Piaggio's stake in the

company and the partnership ceased. LML continues to produce (and also

exports) the P-Series variant known as the Stella in the U.S. market and by other

names in different markets.

Popularity

Bangalore couple on a scooter

Motor scooters are popular in most parts of the first world, Europe (particularly

Italy and the Mediterranean), Japan and Taiwan, but not the US.[58] They are

even more popular in most parts of the developing world, particularly in

countries such as India, Vietnam and China where there is local manufacture.

Parking, storage, and traffic issues in crowded cities, along with the easy driving

position make them a popular form of urban transportation. In many nations,

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scooter (or other small motorcycle) sales exceed those of automobiles, and a

motor scooter may even be the family transport

COMPANY PROFILE

TVS MOTOR COMPANY

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TVS Motor Company Limited

Type Public company

Traded as BSE: 532343,NSE: TVSMOTO

R

Industry Automotive

Founded 1978

Founder(s) T V Srinivasan

Headquarter

s

Chennai, India

Key people Venu Srinivasan

(Chairman & MD)

Products Motorcycles, scooters, three-

wheeler vehicles and spare

parts

Revenue INR 62.99 billion (US $ 1.26

billion)

Parent Sundaram-Clayton Limited

Subsidiaries PT TVS Motor, Indonesia

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Website www.tvsmotor.in

TVS Motor Company Limited (BSE: 532343,NSE: TVSMOTOR) is the fourth

largest two-wheeler manufacturer in India. It is part of TVS Group and

manufactures motorcycles, scooters, mopeds and auto rickshaws.

HISTORY

TVS Motor traces its origins back to the entrepreneurial spirit of Trichur

Vengaram Sundaram Iyengar who gave up lucrative careers in the Indian

Railways and in banking to set up his own business. 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.

TVS Motors:-

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TVS Motor Company has its origin in Sundaram Clayton Limited, Moped

Division, started in 1980. The factory was started in Hosur, Tamil Nadu

in southern India. The first product launched was a 50 cc moped, which appealed

to the masses because of its capability to carry two people. In the same location,

the same promoters started another company in 1984, in collaboration with

Suzuki Motor Corporation of Japan  for the manufacture of 100 cc motorcycles

under the brand name of Ind-Suzuki Motorcycles. Subsequently in the moped

division was bought by Ind Suzuki Motorcycles in 1987 and the company

changed its name to TVS Suzuki Ltd. Even though the company started

producing all kinds of two wheelers like mopeds, scooters and motorcycles, the

collaboration with Suzuki continued for the motorcycles only. The collaboration

with Suzuki Motor Corporation ended in 2001 and since then the name of the

company changed to TVS Motor Company. The company now develops all types

of two-wheelers through its own in house R&D facility and manufactures in three

locations in India, Hosur in Tamil Nadu, Mysore in Karnataka and Baddi in

Himachal Pradesh. It has recently started a new manufacturing plant in

Indonesia to cater to the South East Asian market. The Chairman and Managing

Director of the Company is Mr. Venu Srinivasan who is the grandson of TV

Sundaram Iyengar. 

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OPERATIONS REVIEW

Quality

The Company has significantly improved the quality performance of all its

products through a systematic task force approach. The fact that the Company

came out with Industry first five year extended warranty program on Star brand is

a testimony to its manufacturing quality. 

TQM

The Company continues to benefit from 100% participation of employees in

TQM activities. The employees have completed more than 1,200 projects through

QC Circles and Cross Functional Teams. The average number of suggestions

implemented per employee was 69 during 2010-11. 

Cost management

The Company continues its rigorous focus on costs through an effective

deployment system. Value engineering and aggressive global sourcing

projects are being pursued to reduce material costs and also to partially neutralize

input material cost increase.

 

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TPM is practiced in all the plants to ensure significant improvement in

productivity and reduction in manufacturing cost. During 2007-08, the Hosur and

Mysore plants were awarded the TPM excellence certificate by the Japanese

Institute of Plant Management (JIPM).

Going forward-

Going forward, the road for TVS appears to be bumpy. Automobile industry is

the most competitive industry with competition on all fronts viz. pricing,

innovations, supply chain, efficiency etc. The situation is further aggravated by

rise in raw materials like steel, rubber, plastics etc, as the company is not able to

increase the selling price in proportion, thereby affecting the net profit growth.

This is evident from the fact that though in FY11 sales grew by 4%, operating

profit fell by 1%. Though the raw material prices have cooled off from their

peaks, we expect margins to remain under  pressure in near future. Riding on

significant growth in the two-wheeler segment over the years, coupled with

strong cash position and expectation of buoyant economy, two wheeler

companies have been planning capacity expansions. Hero Honda has embarked

on a green field expansion plan (initial investment of Rs 2.5 bn). Bajaj Auto

(BJAT.BO,news) is expected to increase its capacity by 33% by June 2005.

Similarly Honda Motors and Scooters (SCOO.BO,news) India Ltd, 100%

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subsidiary of Honda Motors Japan is expected to double its capacity in FY06.

These developments are likely to create a significant increase in supply of

two wheelers, changing the demand supply scenario and thus putting pressure on

margins. As compared to TVS, its competitors are sitting with on a huge pile of

cash. Hero Honda generated close to Rs 9 bn from operations, where as Bajaj

Auto generated Rs 15 bn from operation in FY11, thereby are in a better position

to execute expansion plans. TVS generated Rs 2 bn from operations

inFY11. National Council for Applied and Economic Research (NCAER), in its

report has projected that the demand for motorcycles will be almost 10 times of

that of the scooters by 2011-12. TVS, traditionally is considered to be a regional

player with a strong hold in Southern region. As per NCAER report, major

demand for Scooters is expected to come from northern region, which will

account for 50% of the total demand. Similarly the major demand for motorcycle

is expected to be from Western region, which will account for 40% of the total

demand. Thus it will require considerable effort on part of the management to

significantly improve their presence in these regions. This may have an

adverse impact on profits due to additional expenditure on account of advertising

and publicity.

Suzuki sees TVS Motor as main competitor

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SUZUKI MOTOR Corporation (SMC) and Venu Srinivasan-led TVS Group may

have parted company. But the separation seems to be still working on the mind of

the erstwhile foreign partner in the former joint venture TVS Suzuki Ltd. (now

TVSMotor).SMC, which is now entering the Indian two-wheeler segment

independently, has sort of identified TVS Motor as its principal competitor. In a

chat with the visiting Indian newspersons at Hamamatsu in Japan, Shinzo

Nakanishi, Managing Director, had on more than one occasion indicated that

their target would be TVS Motor. Suzuki would aim to match the production and

sales of TVS. "Otherwise, there is no meaning for the divorce,'' he asserted.

Suzuki is currently waiting for the `cooling off' period post-separation to end

to launch head-on into the Indian two-wheeler market. The cooling-off period

ends in April2004.Mr. Nakanishi indicated that the SMC joint venture with

Integra Group would go on stream in the autumn of 2005.While declining to

divulge the capacity of the proposed plant, he said the initial Suzuki investment

in the venture would be around $10 million. To a question, he said, the joint

venture would focus on producing products in the growing segments (100cc to

150cc four-stroke vehicles). Suzuki had picked the plant location in Haryana in

view of the fact that Maruti Udyog had already established a large vendor base

around that place. Mr. Nakanishi said Integra would function only as a facilitator

for Suzuki to get into the two-wheeler business. "It will be a gate for us. We will

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buy them out over a period,'' he added. Asked to comment on TVS Motor's

proposal to enter the Southeast Asian market, Mr. Nakanishi was guarded but did

not mince words. "We will fight them out there as well,'' he asserted. The market

in Southeast Asia was competitive, he said. And, Suzuki had presence in

countries like Indonesia, Thailand and Vietnam.

 

Indian two wheeler market – Competitive Scenario

India is now the second largest two-wheeler market in the world

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

TVS Motor - Driven by the customer

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 TVS Motor will be responsive to customer requirements consonant with its core

competence and profitability. TVS Motor will provide total customer satisfaction

by giving the customer the right product, at the right price, at the right time.

TVS Motor - The Industry Leader

 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. 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 billion in

2007-2008, and is the flagship company of the USD 4 billion TVS Group.

TVSM – Strategy for growth

• Secure product leadership by – Introducing brands that break compromises for

customers. – Offering the most innovative ‘package’ of product, access and

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finance. – Faster introduction of Refresh / upgrades• Forge TVSM into an

organization that is ‘fit for growth’ by – Delivering best-in-class durability &

reliability

 

Building a lean and flexible manufacturing with faster ramp-up capability. –

Aggressive global sourcing – Sweating assets to the maximum. – Leveraging the

power of IT across core functions.• Accelerate development & deployment of

energy-efficient technologies.

TVS Motor posts 23% growth in November 2011

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Scooters grow at 38%; Domestic Sales increase 38%Hosur, 01 December 2010:

TVS Motor Company has posted 23% growth in November 2011, registering

total two wheeler sales of 120,844 units against 98,402 units in the corresponding

period of the previous year. The company continued to post growth in sales for

the eighth consecutive month, registering a cumulative growth of 8% with sales

of 989,353 units in the current financial year up to November

2011against917,439 units in the same period last year. Domestic sales of

the company witnessed a quantum increase in sales positing growth of 38%

recording 106,836 units in November 2011as against 77,491 in the corresponding

period of the previous year. The company's scooter sales grew by 38% posting

25,115 units when compared to18,210 units in the corresponding period of the

previous year. Total motorcycle sale so f the company stood at 45,080 units in

November 2011when compared to 45,276units recorded in November

2008.Exports recorded sales of 14,008 units of two wheelers in November

2011as against60,911 units in the corresponding period of the previous year.

During the month, the company unveiled two novel products, 110 cc motorcycle

TVS Jive and 110 cc automatic scooter, TVS WEGO. TVS Jive features

innovative T-Matic technology with rotary gear technology coupled with

an automatic clutch.

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The bike's anti-stall mechanism makes smooth riding possible at low speeds even

in high gears, without the engine shutting off. The downward rotary gear

system enables the rider to reach neutral straight from top gear. The bike can be

started in any gear and is fitted with an electric start for convenience. TVS

WEGO is a multi-user, family-friendly and sleek metal bodied scooter that strikes

a perfect balance between stability and maneuverability, power and mileage, and

sturdiness and ease, making it a delight to ride for any category of users. The

company hopes to add around 15% to 20% to its monthly sales, once these new

products are made available in the market.

SCOOTY PEP

The TVS Scooty Pep Plus is a modern 4 stroke 90cc scooty that is ideal for the

ladies. Its powerful engine generates maximum power of 3.68kw (5 bhp) @

6500rpm and maximum torque of 5.8 @ 4000 rpm.

35

 

Some of the best features of the Scooty Pep Plus are jewel box headlamp,

integrated tail lamp, chrome plated exhaust, multi reflector indicators, and the

striking pillion grab rail. Besides these, there are many other features to this

scooterette that prove very user-friendly- auto choke, bag hooks,

compartmentalized utility box, auto fuel tap, glove box push and pull bag holder

among others. The Pep Plus Scooty comes in dual texture colors and arresting

graphics.TVS Scooty has always been a good looker. The Pep+ retains

the familiar face with its friendly expression but gets a tangy new set of graphics.

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The grab-rail also now matches its body color. Dual-tone shades spruce up the

scooter with a racy cheque redlook on the front apron and rear panels. Grips,

levers, switchgear and mirrors are top-notch. The only drawback is absence of a

rear brake-locking clamp. In a smart move, the key slot itself is florescent, so

as to allow grope-free access in the dark. There's also a new cell phone-charging

point. Pep+ lights up its lockable under seat storage bay and offers yet another

smart feature that would do well on any such scooterette, a spring at the

mounting pivot prevents the seat from accidentally closing at a fuel station and

crushing unsuspecting fingers. It retains its quality feel in offering alloy rims,

both front and rear. The refreshed force air-cooled Plus motor feels just as buzz-

free and convenient in its automatic ways as before, but there is a difference with

healthy dozes of supplementary performance begging to be used

The Plus not only feels meaty where it matters most in its low- and midrange

punch, but does manage a relatively respectable top speed of 71kph delivered

with refinement. Sitting on the Scooty is comfortable for all except the tallest and

the heaviest, who will surely feel cramped. The Scooty was always bold offering

twin telescopic forks as front suspension. While the rest of the industry sticks

with diminutive and far less effective front dampers, the Pep Plus carries forward

this handling-enhancing theme. At the rear, there is a single shock absorber doing

37

duty in conjunction with its hingedengine.The alloy rim-shod Pep Plus is set

just right for a ride quality that doesn't wallowovertly, nor feels too firm. It's a

well-damped scooterette that offers as much stabilityas can be expected from any

two-wheeler on 10-inch wheels. It steers accurately, turn-in to corners is feather-

like and cornering manners satisfactory. The 110mm drum brakes are adequate

kit for this vehicle, and offer fine feedback through their individual levers.

Recent

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 Karawangin 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

2011became 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

38

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.

Awards

TVS Motor won the Deming Application Prize in 2002, becoming the first and

only Indian two-wheeler company to win the award given to companies that do

outstanding work in the field of Quality Management. It is considered to be one

of the world's most prestigious quality awards. The same year, the work done for

the TVS SCOOTY 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. 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

39

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.[16] The University of Warwick,

United Kingdom gave him an honorary Doctorate of Science degree[17] 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 [19]  and the Team Tech 2007 Award of Excellence for

Integrated use of Computer-aided engineering Technologies.

GROUP COMPANIES

With steady growth, expansion and diversification, today TVS commands  a

strong  presence  in  various  fields-two-wheelers, automotive components,

automotive spares, computer peripherals and finance.

40

Lakshmi Auto Components Limited

- Large OE supplier of two wheeler gears and camshafts.

Lucas Indian Service Limited (www.lucasindia.com)

- Company looks after the distribution of auto electrical components all

over India.

Axles India Limited

- A joint venture with Eaton Limited, U. K. Manufactures  axle  housings  and 

drive  heads  for  heavy  and light commercial vehicles.

COMPANY AT PRESENT & IN FUTURE

41

Successfully launched the SCOOTY and Fiero-F 2 models after  parting

ways with Suzuki.

Two wheeler markets show sign of revival after a lackluster first half.

The company is suffering a decline in volumes due to poor response of its

two strokes Max motorcycles.

Recently launched the TVS PEP and 125 cc TVS SCOOTY GLX and four

stroke Max in the pipeline, which would be launched later this year.

Plans major foray into three-wheeler and quadricycles market through

fresh investments of Rs 500 crore.

Actively looking to set up manufacturing unit in Indonesia or Vietnam.

Strong focus on R&D and product development

Two wheeler markets show sign of revival after a lackluster first half.

The company is suffering a decline in volumes due to poor response of its

two strokes Max motorcycles.

Recently launched the TVS PEP and 125 cc TVS SCOOTY GLX and four

stroke Max in the pipeline, which would be launched later this year.

Plans major foray into three-wheeler and quadricycles market through

fresh investments of Rs 500 crore.

Actively looking to set up manufacturing unit in Indonesia or Vietnam.

42

Strong focus on R&D and product development. 

APACHE THE SAVIOR

TVS launched Apache RTR 160 cc model in September 2008, with its ultra

modern technology for Indian bikes has proved to be a big success. The success

of TVS Apache is especially significant because it was developed with

indigenous technology.

Two stroke Max Range – On the way out

The company is currently looking forward to phase out its two stroke Max range,

which is perceived to be less fuel efficient with a new four stroke range. The

changeover is expected to take place by the end of June 2009.

Two new launches could out TVS on a high growth rajectory

TVS PEP a new 100 cc 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 125 cc TVS SCOOTY has been launched

which will improve the trajectory of the company.

 

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Three wheeler project- entering a new market

TVS Motor has set the stage for entry into the three-wheeler markets 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 ton passenger

and goods carriers segment of the market. With an investment of about Rs 50

crore in phase-1, it will cater to both passenger and cargo segments. The total

investments for the three wheeler and four-wheeler quardricycle project are

expected to be in the range of Rs 500 crore in the next two-three years. It plans to

go with 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 03, and

are expected to grow at the same rate for the next five years. TVS is expected to

rollout its first three-wheeler by the end of FY05 to garner a 30% market share

with around 100,000 unit sales by the end of FY08.

Three-wheeler market scenario

These are two main segments in the Indian passenger three -wheeler markets

are: Number of seats, including driver, not exceeding 4 and maximum mass not

exceeding 1 tonne. Number of seats including driver excluding 4 but not

44

exceeding 7max mass not exceeding 1.5 tonnes. The three-wheeler goods carrier

segments are: Maximum mass not exceeding 1 tonne Others. Around 95% of the

three-wheeler sold in India belongs 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 2002-03could 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 logistics

purpose.2)The increase in the number of offerings in this category, especially

from companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Piaggio vehicles pvt. Ltd.

 

Quardricycle-A new introduction in the Indian market

There is a new challenger emerging in the Quardricycle segment. These new

vehicles could impact on the entry level sales. These new vehicle could impact on

the entry level sales. Quardri cycles are three wheelers converted into four

wheelers by using, a column axle. All the major three-wheeler units

have prepared Quardricycles prototypes

45

.

Merger of engine components Division of Lakshmi Autocomponents with

TVS Motor:

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 for every seven share held

as consideration for the merger. Presently TVS

motor holds 66.5% of equity capital of LAC, which would be cancelled.  Around 

66%  of  LAC’s  sales come from the engine components division, mode of

which is currently being sold to TVS motor. LAC’s total net sales in HI FY 04

were Rs. 69 crore and madea net profit of Rs. 10.5

crore..The Plastics and Rubber components division of LAC will betransferred to

the wholly owned subsidiary company, Sundaram Auto segments are: Maximum

mass not exceeding 1 tonne Others.Around 95% of the three-wheeler sold in

India belongs 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 good scarrying variety grew a whopping 46.95%. This

growth in 2002-03could have possibly come from two factors.

46

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

goods carrier, like trucks be kept out for logistics purpose.

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

companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Components Ltd. The total consideration on slump – sale based is Rs.12.25 crore.

Strong focus on R&D

The company has put in place a strong R & D team consisting 400engineers &

is spending about 3% of its turnover on R & D ever yyear and has in the process

setup a strong world class facility for  product design and development. During

2002-03, the company applied for 16 patents & published five technical research

papers in international  conference.  Modified  research  projects are carried in

association with leading international research labs and Indian institutes. R & D

as percentage of sales in expected to increase from1.5% in FY o2 to 3.2% in FY

04.

 Valuation

The company’s valuations are dependent on five events:

Current four businesses grow at the normal industry growth rates.

47

New product launches achieve their targets and are well accepted by the

market.

Three wheeler foray achieve targeted volume in the desired rates of return

on capital employed.

Quadricycle foray achieve the desired rate of return on the capital

employed.

Unmatched Performance

Today TVS Motor Company has the largest market share in the moped category

with a whopping 65.3% and is also the undisputed leader in the scooter segment

with 34.3% share. It also holds18.3% market share in motorcycles. Graph

Wide Network 

With a strong sales and service network of 500 Authorized Dealerships, 1018

Authorized Service Centres and over 864 Certified Service Points, TVS is

growing from strength to strength.

World Class Facilities

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The company manufactures its motorcycles, and moped sat its state-of-the-art

factories in Mysore and Hosur.

Product Range

TVS offers a wide range of two-wheelers-

Motorcycles - TVS PEP / TVS SCOOTY / TVS Fiero F2/ TVS Max100/ TVS

Max 100 R - Scooterettes - TVS Scooty Pep/ TVS Scooty 2S- Mopeds - TVS XL

Super/ TVS XL Super HD 

 

VISION

TVS Motor - 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 satisfaction by giving the customer the right product,

at the right price, at the right time.

TVS Motor - The Industry

Leader 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.

49

TVS Motor- Global overview 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.

 

 

TVS Motor- Responsible Corporate Citizen TVS Motor firmly believes in the

integration of Safety, Health and

Environmental aspects with all business activities and ensures protection of

employees and environment including development

of surrounding communities. TVS Motor strives for long-term relationships of

mutual trust and inter- dependence with its customers, employees, dealers and

suppliers.

  

MILESTONES

 Launched Scooty Pep in January 2004, a TECHNOLOGY Uncompromising

Quality,

50

TECHNOLOGY

TVS Motor Company's R&D division has an imposing pool of

talentand one of the most contemporary labs, capable of developinginnovative de

signs.Committed to achieving total customer satisfaction through TotalQuality

Control (TQC), the Company continuously strives to give thecustomer, the best

value for money.

ECO-FRIENDLY

TVS is committed to protecting the environment. The company'smanufacturing

facilities at Mysore & Hosur have state-of-the-artfacilities & air pollution control

measures. Even the suppliers areencouraged to ensure that their products meet

eco-friendly norms. 

ALWAYS FIRST

 

51

Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.- First

Indian Company to introduce 100cc Indo-Japanese motorcyclesin Sept

1984.Launched India's first

indigenous Scooterette

TVS Scooty in June1994.- Introduced India's first catalytic converter enabled

motorcycle, the110cc Shogun in Dec 1996.- Launched India's first 5-speed

motorcycle, the Shaolin in Oct 1997.- Launched India's first high performance

moped - the XL Super, witha 70 cc engine in Nov 1997.- Launched SCOOTY in

August 2001, a world-class 4-stroke 110 ccmotorcycle.World-class 4-stroke 100

cc motorcycle with VT-i Engines for best-in-class mileage.

 

 AWARDS

 

 Deming Award 

TVS Motor is the third Indian company to win the Deming Prize. Only two other

TVS companies have managed this before. It's been a long time since the Union

of Japanese Scientists and Engineers instituted the Deming Prize. But very, very

few organizations outside Japan have had the honor of receiving it. In fact, the

52

TVS Motor Company is the world's first motorcycle companyto be awarded the

prize.

 

 

TVS Motor Company posts 117,101 two wheeler sales in October 2008; Exports

up by 30%

Hosur November 1, 2008 : TVS Motor Company hasregistered total two wheeler 

sales of 117,101 units in October 2008 against 129,614 units in the

corresponding period of the previous year.

This year, both the important festivals of Dussera and Deepavali  were 

celebrated  in  October  and  consequently, placement of stocks with the dealers

for the festival season was effected in September. Restricted availability of retail

finance,  high  liquidity  and  general inflationary trends witnessed by the market

also affected sales. However, the

cumulative sales of September 2008 and October 2008,show a growth of 4%

when compared to the same period of the previous year. The company's

motorcycle sales stood at 59,217 units in

comparison with 67,752 units recorded in October 2007.Scooters recorded 23,48

7 units as against 28,119 units during the same period of the previous year .

53

 During the month, the company won two prestigious IT Awards, namely the

SAP ACE 2008 award and the 2008Symantec South Asia Visionary Award.

While the company won the SAP ACE Award for digitization of new product

development process in SAP by implementing PLM(Product Lifecycle

Management), the Symantec South Asia Visionary Award was conferred for the

way the company secured and managed systems and information. Exports

continued  its  upward  growth  trend,  posting  an increase of 30%; registering

17,013 units of two wheelers in October 2008 as against 13,042 units in the

corresponding period of the previous year.

TVS Motor revenues grow at 23.2% in Q2 exports up 52%

Bangalore, October 30, 2008: TVS Motor Company today reported a23.2 %

increase in revenues, registering Rs. 1034 crores for the quarter ended September

2008 of the financial year 2008-09, when compared  to

Rs. 839 crores in the corresponding  quarter of the  previous  year.

Despite the challenging environment caused by increasing input material costs,

general inflationary trends and lack of availability of retail finance, the company

has posted Profit before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4

crores when compared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding

period of the previous year. The last year's September Quarter had the benefit of

54

Rs. 10.2 crore (net) on account of exceptional items.Profit before exceptional

items for the quarter is higher at Rs. 13.9crore in comparison with Rs. 6.7 crores

of the corresponding quarter of last year. The company has recorded growth in

sales despite adverse retail financing. Motorcycles witnessed higher sales at 1.81

lakh during the quarter compared to 1.44 lakh units over the previous period.

Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh units

during the corresponding quarter of the previous year. During the quarter, the

company crossed yet another milestone when it reached two million units of TVS

Scooty in July 2008. Indian Tennis star, Sania Mirza became the new Brand

Ambassador for the Scooty brand. The company chose to associate with Sania as

brand ambassador since she emanates the brand qualities of

independence, progress and accomplishment. During the quarter, the company

further broadened the horizons of its TVS Scooty brand with the launch of

Balancing Wheels, a unique and innovative product engineered specifically for

the TVS Scooty, addressing a never-before segment, who do not know how to

ride, even a bicycle.

 In June 2008, the company unveiled its feature rich TVS Apache RTR FI

offering riders the instant thrill and superior performance of a fuel injected 160cc

engine. The second quarter also witnessed the commemoration of the first

55

anniversary of the Apache RTR brand

while the company crossed yet another landmark delivering the 2,50,000th

Apache.

Exports

Exports continued the upward growth path registering a total number of 0.55 lakh

units during the quarter ended September 2008,recording a growth of 52% over

the same period last year. Thecompany has expanded its footprint to more

than 54 countries acrossthe globe.

Future Outlook 

The global financial crisis, the consequent serious liquidity issues and higher

financing costs are likely to impact the growth prospects of the two-wheeler

industry. Retail finance has become even more difficult. The tight liquidity will

affect the ability of dealers to stock two-wheelers. The drop in the commodity

prices, however, is a welcome break. The company will continue the vigorous

implementation of its improved value-engineering program to reduce costs. The

company continues to maintain the highest quality standards of all its products.

 

SUB DIVISION OF SHARES

56

In order to improve the shareholder value and to facilitate greater liquidity in its

equity shares, TVS Motor Company recently subdivided the face value of its

shares to Re. 1/- each. Earlier the face value of the shares was Rs. 10/-

PRODUCT PROFILE

TVS Scooty

TVS Scooty

57

Type Subsidiary

Industry Scooter

Founded 1994

Headquarters Chennai, India

Parent TVS Motors

Website scootygals.com

Scooty is an Indian brand of Scooters manufactured byTVS Motors. Designed for

women, Scooty is the largest selling Scooter brand in its segment. It has come to

represent a generic name for any women's two-wheeler in India. Anushka Sharma

endorses the brand.

HISTORY

Scooty was initially conceived of as a Scooter for both sexes. However sales

figures over the first two years indicated that more women were buying the

Scooty than men. In 1996, Scooty went through arepositioning exercise to target

women. Though it was seen as a risk with the large majority of Indian two-

58

wheeler riders being male, TVS chose the strategy to tap the nascent segment of

women riders.[1]Over the last decade, Scooty has launched several models that

cater to different segments of the market. These include the Scooty ES (1996),

the Scooty Pep (2003) and Pep+ (2005), Scooty Teenz (2007) and Scooty Streak

(2009)

.

WOMEN ON WHEELS: BUILDING THE RIDING HABIT

TVS Scooty embarked on a project to provide two-wheeler riding training to

women across small and large towns in India with a view to building the habit of

riding in what is considered a low-penetration segment: less than 2% of Indian

women in the potential two-wheeler buying category of 15-60 year olds actually

buy a scooter. Rechristened the TVS Scooty Institute, 80 centers have been set up

and 42,000 women have been trained to ride a two-wheeler.[3] About 20% of

women trained at the institute buy the TVS Scooty. This campaign has won

several awards, notably amongst them the EMVIE by the Ad Club Bombay for

being the best campaign innovation.

ENVIRONMENTAL IMPACT

59

Concerns for the environment and rising fuel prices have resulted in a slew of

Indian automobile manufacturers exploring the electric two-wheeler segment,

notably amongst them Hero Honda and Kinetic. TVS Motors entered the segment

in April 2008 with the brand Scooty Teenz Electric, an ungeared scooter powered

by an 800 Watt motor running on a lead–acid battery.[5]e Teenz Electric can

carry a load of 130 kg with a pillion rider, up to a distance of 40 km on a single

charge. Recognizing special needs of the young Indian woman on the road

Scooty Teenz Electric incorporates design elements such as large utility and

storage spaces, a mobile phone charger and a low battery charge indicator.

TVS SCOOTY IN INDIAN ENTERTAINMENT

The TVS Scooty range has been featured in a number of Bollywood movies and

Indian TV Serials, as either a prop, or in certain cases part of the plot. In the 2008

film Ghajini starring Aamir Khan, lead actress Asin Thottumkal rides the TVS

Scooty Pep+ to get around in the role of Kalpana. It has also been featured in the

films Chance Pe Dance starring Genelia D'Souza and in Sunday starring Ayesha

Takia. Ranbir Kapoor in the lead role of the 2009 release Rocket Singh:

Salesman of the Yearrather unwillingly has to ride the a bright pink Scooty Pep+,

bought lovingly for him by his father, played by the avuncular Prem Chopra. The

60

Scooty becomes PEPl to the plot as much of the time Ranbir's character Harpreet

Singh spends on the road is on this scooter.

MTV Scooty Teen Diva initiative

Today Scooty is shorthand for any women's two-wheeler, it has almost become a

generic name

S Srinivas, General Manager, Marketing, TVS Motor on Scooty promoting the

category of women's scooters in India 

TVS Scooty supported the MTV Scooty Teen Diva reality televisioncontest that

judged contestants on a variety of skills and attributes. The 2009 edition had over

3000 applicants, 11 of whom participated in a 15-day shoot on location which

was televised into an eight-episode reality series on MTV India in July–August

2009. Featuring judges who were members of the Indian fashion industry,

contestants were graded on skills such as ramp-walking, cheerleading, acting and

creativity. The winner Apecksha Porwal competed as India's representative at

the Miss Teen International beauty pageant in July 2010 in Chicago, USA. The

association with a youth-oriented TV series is believed to reinforce Scooty's

position in the minds of the target consumer.

MODELS AND FEATURES

61

Scooty Streak

Launched in March 2009, the TVS Scooty Streak features LED tail lamps,

external fuel filling and an easy-to-use center stand: making it specifically

designed for the young woman. It has 90mm wide anti-skid tyres fashioned from

wet compound giving it stronger grip in wet weather driving. Indian tennis player

endorsed the brand and has appeared in several commercials around the model.

SCOOTY PEP+

Launched in 2005 Scooty Pep Plus features a light-weight body, with a choice of

99 colours. No other scooter in the segment offers such a choice. Pink is the

largest selling colour. At various times,Bollywood actresses Preity

Zinta and Minissha Lamba have endorsed the brand.

SCOOTY TEENZ AND TEENZ ELECTRIC

The Scooty Teenz has also been released in the electric edition that is designed

specifically for young women who travel short distances.

SPECIAL LIMITED EDITIONS

62

In July 2006 Scooty launched the limited edition Fashion Series with the Perky

Pink model that featured a shade-tested hot pink colour believed to be the rage

amongst the target segment of 16- to 24-year-old girls. With Preity Zinta as its

face, the campaign spoke of thoughtful accessories such as the glow-ring around

the key-hole, lit luggage compartment and the mobile charger socket.

Scooty launched a limited edition series to coincide with the start of the 2008

Wimbledon Championships. TVS entered into an agreement with the All

England Lawn Tennis and Croquet Club to be an official licensee and launched

two variants, the Wimbledon Class and the Wimbledon Xtreme bikes. Designed

to be a tribute to women with a sporty attitude, the Class featured white, purple

and green flow strokes while the Xtreme came in red with graffiti art.

A sleek duo-tone body. Body colored coordinated mirrors. A smileyheadlamp.

Winky indicators. Looks even better with you on it.

POWER

75cc 4stroke engine to pep up your ride. A bigger, more comfortableseat for two

and strong hydraulic shock absorbers for a smoother ride

 

63

TECHNOLOGY

A unique power/economy mode for extra mileage. An auto reservefuel tap. No

more turning knob from main to reserve. Auto chokes for instant starts. Every

time.

SAFETY

Puncture Resistant Tyres that come with a special sealant inside, minimizing

chances of a flat. A side stand alarm that beeps if you forget to take off the stand.

Multi focal reflector headlamp and sidereflectors for enhanced visibility. Now all

you need is an equally funky helmet and you” re all set to pep

PART II

INTRODUCTION OF THE PROJECT

Someone has rightly said that practical knowledge is far better than classroom

teaching. During this project I fully realized this and I came to know about how a

64

consumer chooses among a varied range of products available to him.

The subject of my study is market research and promotiom of TVS Scooty, which

has slowly but steadily evolved, from a beginner to a corporate giant earning

laurels and kudos throughout. The report contains first of all brief introduction

about the company. Finally there comes data presentation and analysis in the end

of my report. I also put forward some of my suggestion hoping that they help

TVS Motor Company move a step forward to being the very best.

SCOPE OF THE STUDY

The scope of the study is to study the customer buying behavior of the

respondents in Lucknow and attain the awareness level of the customers. The

scope is that the services of the dealer, advertising media as well as celebrity has

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made an effect on the customer or not and how much. This study also allows

knowing the future prospects of the company and where it is at present in the

market.

OBJECTIVE OF THE STUDY

The objective of the study is to analyze the customer buying behavior of

the respondents in motorbikes of different brands .

To study the future prospects of TVS motorbikes.

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To provide a fair picture of technology used by TVS motors.

To study the sales trends of tvs motors.

To analyze the quality of after sales services being provided by tvsmotors.

RESEARCH METHODOLOGY

SAMPLE SIZE AND LOCATION

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The data has been extracted mainly from questionnaires filled up by respondents

from Lucknow, Barabanki and Bandhra of the information has been collected

through internet surveys and social networking communities on websites. The

questionnaire was filled up by 50 respondents scattered

at different places and many more respondents provided valuable information

through the internet. The aforementioned questionnaire has been attached at the

end of the project.

RESEARCH AND DATA TYPES

The purpose of methodology section in the report making is to describe the

research process that is followed while doing the

main part. The research design plays a pivotal role in the quality and content of

the data in making of any project report. The type of research design chosen is

seen to have a bearing on all the aspects of report writing.

RESEARCH DESIGN:

Descriptive Research design The research design undertaken for the study was

Descriptive one. The reason for using a descriptive research method was to

obtain qualitative data and also since the nature of study is as such that it required

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the exploration of various aspects within and outside the company. In order to

carry out a well researched analysis efforts were taken to collect enough

information from the respondents. For this purpose various  primary  and

secondary sources were used. This would however include the research design,

the sampling procedure, and the data collection method. This section is perhaps

difficult to write as it would also involve some technical terms and may be much

of the audience will not be able to understand the terminology used.

Source of Data Collection

a) SECONDRY DATA

b) PRIMARY DATA

SECONDRY DATA

- When an investigator uses the data that has  been  already  collected  by  others

is  called  secondary  data. The secondary data could be collected from Journals,

Reports, and various publications. The advantages of the secondary data can be 

–It is economical, both in terms of money and time spent .The researcher of the

report also did the same and collected secondary data from various internet sites

like Google.com, altavista.com and many more. The researcher of the report also

visited various libraries for collection of the introduction part.

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PRIMARY DATA

- Primary data is that kind of data that is collected by the investigator himself for

the purpose of the specific study. The data such collected is original in character.

The advantage of this method of collection is the authentic. A Set Of Questions

Were Put Together  In  The  Form  Of  Questionnaire  With 13 Questions. The

method of sampling was the Random.

INSTRUMENTS for Data Collection

The instruments used for collection of data were mainly questionnaires, internet

surveys and personal visits to the respondents.

Tools Used for Analysis

•Bar Diagram

•Pie Diagram

•Tables

SWOT ANALYSIS

Strength & Weakness

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Huge sale network (3500 Dealers).

•Better sale service.

•It has the highest share inautomobile sector.

•It has a good brand image.

•It gives better service for customers.

•Best customer preference.

•Debt equity ratio is only 0.1.

•Suppose to be very sophisticated.

• Not fit for ruler India.

•They have big gap between cubiccapacities of its products.

•Its market share is reducing from lastfew years.

•Spare parts are too costly.

•If they are able to improvise thefuel efficiency of Scooty pep+, it will be a

golden opportunity to take over the market.

•Growing world demand for entry-level motorcycles especially inemerging

markets

threats:-

•Bajaj Auto Ltd.

•Hero

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•Honda.

•Yamaha Motors India.

•The cost of the product is very highin comparison to other companies.

Opportunities:-

•Long term growth prospects for the industry is attractive.

•TVSM poised to grow ahead of market through strong innovation and

fasterupgrades.

•Exports will be a key thrust area and will contribute to 10% of sales.

 •Indonesian project will be an adjacency to current operations and will

improvegeographical insurance.

•Focused efforts to reduce cost will improve profitability.

THEOROTICAL FRAMEWORK

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  productownership. Markets enable peoples' services, firms and

products to be evaluatedandpriced. There are two roles in

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markets, buyersandsellers. The definition implies thatat 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 beevaluated in

relation to each other. A market allows buyers and sellers to

discover informationand carry out a voluntary exchange of goodsor services. This

is commonlydone throughtrade. These trades may be handled a variety of ways,

but in small marketenvironments, buyers and sellers typically deal incurrency,

and goods. In everydayusage, the word "market" may also refer to

thelocationwhere goods are traded, or inother words, the marketplace.

MARKET STRATEGY

A marketing strategy is a process that can allow an organization to conPEPte

itslimited resources on the greatest opportunities to increase sales and achieve a

sustainablecompetitive advantage.

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 descriptionof the most common categorizing

schemes is presented below

Marketing Strategies of TVS Motors 

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•Strategies based onmarket dominance- In this scheme, firms are classified

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

typesof market dominance strategies:

•Porter generic strategies- strategy on the dimensions of strategic scope

andstrategic strength. Strategic scope refers to the market penetration

while strategicstrength refers to the firm’s sustainable competitive advantage.

•Innovation strategies - This deals with the firm's rate of the new

productdevelopment and business model innovation. It asks whether the company

is onthe cutting edge of technology and business innovation. There are

three types:

DATA INTERPRETATION

Que1.Do you own a Bike?

Yes 76

 No 24

74

If yes, which Bike do you have?

Specify __________________________________ 

76

24

Yes No

Que2. Which brands of Bike are you aware of……..?

TVS 22

HERO 32

ENFIELD 8

YAMAHA 8

BAJAJ 21

75

HONDA 9

22

32

8

8

21

9

TVSHEROENFIELDYAMAHABAJAJHONDA

Que3. Which factors do you consider while purchasing a Scooty ?

MILEAGE 10

STYLE 30

PRICE 20

EASY FINANCE 20

LIGHT WEIGHT 10

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AFTER SALE SERVICE 10

10

30

20

20

10

10

MILEAGESTYLEPRICEEASY FINANCELIGHT WEIGHTAFTER SALE SERVICE

Que4. Who influenced you while purchasing the Scooty?

FRIENDS 38

DEALER 25

FAMILY 17

MEDIA 20

77

38

25

17

20

FRIENDSDEALERFAMILYMEDIA

Que5. Have You Visited Any TVS Showroom?

Yes 30

No 70

78

30

70

YesNo

Que6. If yes, what was the Experience?

VERY GOOD 35

GOOD 45

AVERAGE 16

BAD 4

79

35

45

16

4

VERY GOODGOODAVERAGEBAD

Que7.Did you have your scooty on finance?

Yes 65

No 35

80

65

35

YesNo

Que8. Will you recommend Scooty to others?

Yes 85

No 15

81

85

15

YesNo

Que9.If you have a Motorcycle other than TVS?

BIKE 55

TVS 45

82

55

45BIKETVS

Que10. Were you offered a test-ride at the TVS Showroom?

Yes 85

No 15

83

85

15

YesNo 

RECOMMENDATIONS

LIMITATIONS

SUMMARY AND CONCLUSIONS

RECOMMENDATIONS

 

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In the analysis the respondents have shown that they consider TVS motor

company after HERO and BAJAJ and this is a major concern for the company.

TVS motor company has to make

some arrangements to increase the awareness level among the prospects through

media. The company should also emphasize on other bikes excluding TVS

SCOOTY and TVS PEP because some of the bikes in TVS like Apache RTR are

more popular than these bikes in the surveyed area. In Lucknow the respondents

who have visited the dealership are not satisfied with the service facilities which

can be improved by regular visit of the service managers as well as providing

regular training to the staff as well as the owner. The dealership in Lucknow also

lacks in space, which is a major concern because the first impression on the mind

of the customer is about the window display, which can be improved with the

help of the professionals. The buying behavior of the customers in Lucknow is

not focused on the celebrity endorsement but they want a product which should

contain all the factors and at an affordable price. The customers in Lucknow want

more number of dealers in their area so as to have more options in visiting the

dealership. Every dealership should have the same services and excellent window

display so as to attract more customers. As in the demographic phase of the

respondents the younger generation wants to have a bike with lot of power and

style which TVS should come within future .

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LIMITATIONS

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. The data used in most part of the

report is secondary data, it has inherent discrepancy.

As TVS is still not a household brand name, some of the respondents were not

completely aware of its products and track record.

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 of “Best

Transportation”.

Truly the modern world relies on transportation 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 nowadays known as  Motorbike.

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Each human being that is living in this social world knows the importance of

bikes because it serves the purpose in any kind of situation and in any part of this

world. The topic of the project is Customer Buying Behavior taking TVS  for 

comparison.

TVS motor company is one of the leading bike manufacturers in India. The

analysis of the project was based on customer’s point of view. For the study, both

primary data and  secondary data were required. The primary data was collected

based on a survey research, using a structured questionnaire with both open

ended and closed-ended questions. The sampling procedure used was random

sampling for the 1st objective i.e. to understand consumer needs on motorbikes.

For the 2nd objective i.e. to understand the awareness levels of TVS I went to the

prospects and met the respondents to fill the questionnaire. The  mode  of 

survey  was  of  personal interview, where the respondents filled up the

questionnaires. The secondary data was collected from business newspapers,

magazines, Company  brochures,  journals  and  the 

Internet. The major conclusion from this study was that TVS has to improve itself

to gain the 1st position in the market as it is doing well to maintain its 3 rd position

in the market. In terms of competition TVS has neck-to-neck competition with

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Hero and Bajaj. TVS has a lot of work to do if it has to take lead and remain the

leading manufacturer in India.

CONCLUSION

 

The facts and figures shown in the analysis is correct and the survey has

been done in a good faith and responsibility

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As HERO , BAJAJ and YAMAHA have taken the 1st. ,2nd and 3rd position.

Thus TVS motor co. has to make some more efforts to increase the

awareness among the people in the context of bikes.

The respondents have been asked about the most effective slogan in

different brands of bikes in which again HERO and BAJAJ have taken the

lead. TVS motor co. has emphasized only on SCOOTY and not on other

bikes, thus people only know about SCOOTY and not other bikes. Print

media and different types of media should be used to make people know

about the slogan.

The respondents in the factors, which they consider while purchasing a

bike, have done the ranking. MILEAGE is the first factor following with

POWER and STYLE and also with an adaptable PRICE. The company has

to make efforts for making

a product that should have all these three factors with considerable price.

The most influencing factor in purchasing decision of the bike is FAMILY

and after that FRIENDS which is not at all linked with the  company 

investment.  The  company  generally  invests in Dealer  promotion 

and Media, which is not appropriate asanalyzed in this question.

Awareness level through Media and dealer should be increased.

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When asked about the experience at the TVS dealership most of the

respondents had a good and average experience with a small number 

having  bad  experience.  The  small  number  of bad experience can be

avoided by giving warm welcome and good behavior by the staff.

The respondents who have not visited the TVS dealership are either not

interested in TVS bikes or they are not satisfied with TVS products. In this

matter the dealer should increase the road shows as well as arrange

regular customers meeting which will create interests in other prospects.

Most of the respondents had knowledge about the TVS bikes, which is a

good sign for the TVS motor company.

In TVS motor company SCOOTY is the most popular bike and very

interestingly without any media interaction FIERO F2 has taken the 2nd

spot with PEP on the 3rd spot which has taken a lead with only one place

from MAX-R .It is recommended that FIERO  F2  should  be  given 

equal sales promotion than PEP because of its popularity has come through

people network and not through channel media.

The respondents have liked the service facility and the staff but the

important factor is the lack of space. The dealership in New Delhi has to

improve the staff as well as the after sales services and the

customer relations.

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Celebrity endorsement does not affect most of the respondents whereas

only 34% of the respondents have an affect over

the purchasing decision of bike. Company should give more importance to

the product so as to give the best in quality to the customer.

In context to popularity TVS ranks 3rd according to this sample size and

thus the company should introduce new products as well as reposition its

product according to the demand in the market.

In the case of no price consideration TVS ranks 4th and according to survey

analysis the respondent wants to purchase his dream bike which TVS

Company has to make in comparison with HERO , BAJAJ and ENFIELD

BULLET.

BIBLIOGRAPHY

WEB SITE

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•Google.com,www.tvsmotor.com

TEXT BOOKS

•Marketing Research, Test and cases, Richard D. Irwin,Linois

•C.R Kothari, Research Methodology

 NEWS PAPER 

•Times Auto

•The Economic Times

MAGAZINES

•Auto Sports

•Business Outlook 

QUESTIONNAIRE

Que1.Do you own a Bike?

Yes

92

 No

If yes, which Bike do you have?

Specify __________________________________ 

Que2. Which brands of Bike are you aware of……..?

TVS

HERO

ENFIELD

YAMAHA

BAJAJ

HONDA

Que3.Which slogan of Bike affects you the most and of which brand…?

Specify___________________________________ 

Que4.Which factors do you consider while purchasing a Scooty / Activa /

Pleasure / ?

[Rank]MILEAGE `

93

STYLE

PRICE

EASY FINANCE

LIGHT WEIGHT

AFTER SALE SERVICE

Que5. Who influenced you while purchasing the Bike?

FRIENDS

DEALER 

FAMILY

MEDIA

Que6.Have You Visited Any TVS Showroom?

Yes

No

Que7.If yes, what was the Experience?

VERY GOOD

GOOD

94

AVERAGE

BAD

Que8. If No, why you have not visited the TVS Showroom?

Please Specify______________________________ 

Que9.If you have a Motorcycle other than TVS?

BIKE

TVS

Que10 Do you know about TVS Motor bike?

Yes

 No

If yes which Brand of TVS Motor bike?

Specify ___________________________________ 

Que 11 Have you visited TVS DEALERSHIP?

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Yes

 No

Que12.What have you liked OR Disliked at TVS DEALERSHIP?

Specify____________________________________ 

Que13.Does celebrity endorsement affect the purchase of Bike?

Yes

 No

Que14.Which brand do you think is most popular in the Market?

Specify___________________________________ 

Que15.

If there is no price consideration which brand would you buy?

Specify___________________________________  

THANKS A LOT FOR PARTICIPATING!!NAME

………………………………………………..

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AGE……………………………………………………

SEX…………………………………………………….

OCCUPATION……………………………………….

INCOME………………………………………………

PHONE NO. ………………………………………….

ADDRESS…………………………………………….

…………………………………………………………

SIGNATURE:

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