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7/30/2019 Term Report SMM - TVS
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IQRA UNIVERSITY IU
Racing past the BarriersThe Success of the Apache Motorcycle in India
Submitted To: Mr. Ahsan Durrani
Submitted By:
Ahsan Waseem (7022)
Muhammad Imran (5021)
Mehmood Sufiyan (3934)
Irfan ul Haq (6946)
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Contents
1. Introduction and history of company
2. Scope of Indian Market before 1990 and after 1990.
3. Characteristics of the market in India?
4. Market Change in India
5. Role of Market Segmentation and Effects of Porter Forces on Company’s Brand
6. Qualitative research and quantitative research
7. The Need Scope System. Marketing Model and Archetypal framework
8. Problems Faced by TVS company facing in marketing its two wheelers
9.
Needs identified thorough identified through quantitative research.
10. Overall Market Image of TVS
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Company History
TVS MOTOR COMPANY
The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar . As one of India’s largest industrial entities it
epitomizes Trust, Value and Service. It all began way back in 1984 when Sundaram Clayton Limited (A TVS Groupcompany) introduced its 50 CC mopeds in the arena of road racing, notching up unbelievable speeds of 105 kmph. Since
then, there has been no looking back for TVS Motor Company. TVS Racing was established in 1987 with the objective of
improving the performance of its bikes. Over the years it has provided valuable data, design inputs, development of
reliable motorcycle models, excellent vehicle dynamics & handling etc. The true evidence of it is seen in today's TVS
Victor and TVS Fiero. Today, there are over thirty companies in the TVS Group, employing more than 40,000 people
worldwide and with a turnover in excess of USD 2.2 billion.
With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers,
auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercia
vehicles passenger cars, finance and insurance.
TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler
manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million.
The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out of TVS 50, India's first two
seater moped that ushered in an era of affordable personal transportation. For the Indian Automobile sector, it was a
breakthrough to be etched in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be
honoured with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.
MANY FIRSTS TO THE AUTOMOTIVE INDUSTRY IN INDIA
TVS has been at the forefront in bringing a revolution in the way personal commutation
was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use
moped for the middle class in India in the 1980s to launching 7 new bikes in a single day
(first time in the history of the automotive industry in the world), TVS has often taken the
unbeaten path to innovation. Ushering in the personal transportation revolution
1980 Launched TVS 50, India's first 2 seater 50
cc moped
1984 First Indian company to introduce 100 cc
Indo - Japanese motorcycles
1994 Launched India's First indigenous
scooterette (sub - 100 cc variomatic) - TVSScooty
1996 Introduced India's first catalytic converter
enabled motorcycle, the 110 cc Shogun
1997 Introduced India's first 5 speed motorcycle,
Shaolin
2000 Launched India's first 150 cc, 4 stroke
motorcycle - The Fiero
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2001 Launched India's first fully indigenously
designed and manufactured motorcycle.
2004 Launched the revolutionary VT-I engine for
the best in class mileage in TVS Centra
2006 Launched TVS Apache - first bike to win 6
awards in a row
2007 Apache RTR - first two wheeler in India to
have racing inspired engine and features.
2008 TVS Flame, TVS Scooty Electric Vehicle and
Three wheeler TVS King launched.
TV Sundaram Iyengar and Sons Limited (TVSs) is the holding company for the TVS Group of companies engaged in
the manufacturing of almost all kinds of automotive components, best 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
2003.TVS was founded by T. V. Sundaram Iyengar in 1911.
TVS Group CompaniesSundaram Brake Linings
Sundaram Fastners
Southern Roadways
Sundaram Finance
Sundharams Private Limited
Brakes India Limited
THE MAJOR PRODUCTS
Motorcycles
TVS Ind Suzuki AX 100
TVS MAX 100
TVS MAX R 100
TVS Supra
TVS Suzuki Samurai
TVS Suzuki Shogun
TVS Suzuki Shaolin
TVS Suzuki Fiero
TVS Fiero
TVS Star
TVS Star City
TVS Star city deluxe
TVS Star Sport
TVS Fiero F2
TVS Fiero FX
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 (ElectronicFuel Injection)
TVS Flame
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Former characteristics of the market in India?
1990’s India, Indian economy after independence Indian economy wa s influenced by the colonial experience, which
was seen by Indian leaders asexploitative.Domestic policy tended towards protectionism, witha strong emphasis on
import substitution, industrialization, economic interventionism, a large public sector, businessregulation and centra
planning, while trade and foreign investment policies were relatively liberal.
Production capacities were limited, and yet it was a marketing heaven for the existing producers. Customers waiteduncomplainingly for long periods (extending to a year and beyond) after full
Payment to collect their set of wheels
Before change;
Limited Licensing
Restriction in import
Lobbyism
Limited production capacity
Customer perception based on experiences about payment methodology
Demand supply gap
Two wheelers considered as family transport
Main Players of the Market:
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How was the market changing?
After 1991 , a new India emerged after the Balance of Payment(BoP) crisis. The balance of crisis, which show Indian
currencies falling rapidly also forced the Government, to take a new direction . India, from a socialistic and protected
economy moved to capitalist and market economy.
A thriving new affluent middle class came into existence. The neglected software sector of Indian Business , became the
new poster boy for India’s Business success . The economic reforms which was forced , by the troubling situation , India
faced in the times of 1991 , actually brought a new level of change . There where blockbusters IT companies, which
came out from Indian young generation . It is these time onwards, that three major IT companies of India, made its mark
in the World – Infosys,Wipro and TCS .
The market economy also brought substantial change in the Indian society . It seemed for some time , that India has
opened up, and the entire cultural psyche , is going through a strong transformation . The internet also brought a new
revolution to Indian Business . Though things look pretty positive , India still didn’t become an economic superpower.
Changing Attributes;
Customer oriented
Permission of import by Govt. led to advance technological impact on product
Due to encouragement to the foreign investment increased production capacity
Improved distribution
Increased growth rate
Technical collaborations
No. of choices
Increased capacity
Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the
combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one
approaching "pure competition", in which available profits for all firms are driven to normal profit.
Brand equity
sunk costs
Customer loyalty to established brands
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The existence of products outside of the realm of the common product boundaries increases the propensity of customersto switch to alternatives. Note that this should not be confused with competitors' similar products but entirely differentones instead
Buyer propensity to substitute Relative price performance of substitute
Buyer switching costs
Perceived level of product differentiation Number of substitute products available in the market
Ease of substitution. Information-based products are more prone to substitution, as online product can easily
replace material product. Substandard product
Quality depreciation
What roles did qualitative research and quantitative research fulfill?
Qualitative Research;
Qualitative research is a method of inquiry employed in many different academic disciplines, traditionally in the socia
sciences, but also in market research and further contexts.[1] Qualitative researchers aim to gather an in-depth
understanding of human behavior and the reasons that govern such behavior. The qualitative method investigates the
why and how of decision making, not just what , where , when.
Qualitative Research Attributes
Critical Social Research, used by a researcher to understand how people communicate and develop symbolic meanings.
Ethical Inquiry, an intellectual analysis of ethical problems. It includes the study of ethics as related to obligation,
rights, duty, right and wrong, choice etc.
the beliefs, and develops ways to specify how
a knowledge base should change in light of new information.
one to reflect and provide possible answers to current issues and problems.
Following are the things which TVS did in order to clear out the Market Requirement:
Market structure identified More in-depth analysis of consumer behaviors.
Better connection of brands leading customization
Quantitative Research;
In quantitative research your aim is to determine the relationship between one thing (an independent variable)
and another (a dependent or outcome variable) in a population. Quantitative research designs are either
descriptive (subjects usually measured once) or experimental (subjects measured before and after a treatment).
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A descriptive study establishes only associations between variables. An experiment establishes causality
For an accurate estimate of the relationship between variables, a descriptive study usually needs a sample of
hundreds or even thousands of subjects; an experiment, especially a crossover, may need only tens of subjects.
The estimate of the relationship is less likely to be biased if you have a high participation rate in a sample
selected randomly from a population. In experiments, bias is also less likely if subjects are randomly assigned to
treatments, and if subjects and researchers are blind to the identity of the treatments.
Related with Quantitative technique, TVS follow the strategy to stimulate with market requirements and correlation the
customer requirement with Brand like:-
Segmentation to validate the need structure and measure the sizes of the need segments. Mapping and measuring ofexisting brands on the needs landscape helped to identify where the opportunity lay. Concepts were developed andtested and THEN finally the technical design team given the direction toDevelop/ identify a suitable product that expressed the desired brand positioning.
Powerful brands understand that emotion is critical to every marketing activity and decision. Managed well, emotion can
turn products into brands and build committed consumers.Whether you are developing and executing brand strategy,
finding innovation gaps and filling them or constantly reviewing brand delivery, NeedScope brings the emotive element to
your research.
NeedScope™ is a qualitative and quantitative market research system for understanding emotion throughout the
marketing process. NeedScope’s™ systematic approach to managing emotion in brands gives clients a framework for
consistent brand development, locally or globally. NeedScope™ is the world’s leading motivational research system and
has helped clients in over 2000 cases across 70 countries.
What insight is drawn from existing theory?
Modernity led the company to move away from family oriented scooters
Need of differentiated product
Company’s internal changes are required, i.e. Technical Enhancement in Functioning
Stability, trust and reliability are prime but not the only.
Explain the concept of The Need Scope System. What does the marketing model and archetypal framework
Need Scope™ is a qualitative and quantitative research system for understanding and managing emotion throughout the
marketing process. Using a psychological framework and unique projective tools, NeedScope goes beyond the functional
to uncover the emotional component central to successful marketing.
There are many layers to consumer needs and brand image.Emotion is at the heart of these and drives the consumer-
brand relationship.This layer is the hardest to reach as it’s less tangible and largely subconscious.
NeedScope uses projective tools qualitatively and quantitatively to reach the emotive layer. Projective sets reflect the
archetypal model. These are validated across 9 cultural regions for global application
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Functional Needs - Product Features
Combination of power , speed, pick up, trendy look
Identity Needs - Social Values
social values of brand with consumers like young people, first time bikers, young-hearted people etc.
Emotive Needs – Symbology
Fun time, first found freedom, adventure, thrill, exploration;
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TNS uses Need Scope to harness the power of emotion using a unique set of tools:
the consumer-brand relationship model links the layers of consumer needs and brand image at the heart of the
marketing equation
our projective tools access and measure emotion qualitatively and quantitatively
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our powerful analysis system is not only simple to use but has been developed to directly answer marketers
questions
the consumer-brand relationship model links the layers of consumer needs and brand image at the heart of the
marketing equation
the Need Scope psychological model summarizes universal human emotions
our projective tools access and measure emotion qualitatively and quantitatively
our powerful analysis system is not only simple to use but has been developed to directly answer marketers
questions
Archetypal Framework
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What problems was TVS Company facing in marketing its two wheelers? What made them change their
thinking?
Increase in competition
The Marketers approach to the Consumer directly increased shift
Need of a brand to connect with consumer’s choice
Customized product
Price and efficiency was prime focus
Changes In Thinking
TVS shifted to no. 3 position
Immediate exploration of market was needed
Multiple choices at all price tiers available
TVS turned to better engineering and designs
A distinct positioning was required
The Need Scope model is a state of the art model for understanding archetypal consumer needs and brand perceptions.
It is an invaluable tool when dealing with strategic issues in branding, creating inspiration in innovation and concept
development as well as building competence and understanding about customer and brands in the organization.
What were the six needs that were identified through quantitative research? What were the characteristics
of each? What segment was selected by TVS and why?
Liberation; 21%: Fun time, first found freedom, exploration
Potency 28%: A love of risk & adventure, conquering, pushing limits
Belonging 12%:To fulfill role as provider to belong to peer group
Exclusivity 13%: Enable efficiency, success with & convenience
Efficiency 13%: Feel better than others and sophisticated
Compensation 13%: want to get the value back from the product they are paying for
Potency and Liberation: As it was the largest segment
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Functional Promise; Stylish look, power and pickup, Lightness to reflect the mood, easy maintenance,
partnership with trendy retailers sponsorship on Moto GP Sports.
Does Apache have the ingredients to be “cool” and is the concept of consumer tribe relevant?
Potency and liberation oriented segment is targeted for Apache that shows consumer’s behavior in shape of love
,adventure, conquering, pushing limits, fun times , freedom and exploration.
Apache was symbol of;
• Celebration
• Not associated with tribe commitments and bounding
• To have a Liberty in activities and journey
• Modernity focused
TVS Apache is an exciting offer from TVS. A powerful blend of contemporary design and engineering, TVS Apache is
superbly styled with fantastic finish. The mighty machine has sleek finish with lines that flow smoothly and seamlessly.
Having a muscular design theme, TVS Apache has arrow shaped headlamp and fairing combo. OverDrive, BS Motoring
and Autocar named it Bike of the Year 2006. BBC Top Gear named it Design of The Year 2006 for Two Wheelers.
It was not just about bold decision making and creating the right concept. The execution and implementation remained
true to the archetypal positioning and delivered the perfect tonality. Advertising created was completely differentbothanything TVS had done before and a complete break from the corporate image. To ensure that the planners
remained true to the archetype and did not give in to the temptation of resorting to a comfortable direction that hadworked before, a principle of NOTness was used to develop the advertising and marketing communication.