TVS MOTOR COMPANY
A study on Customer Preferences and satisfaction level towards Tvs Motors Submitted to Sanskrithi School of Business, Puttaparthi, An Affiliated Institution under JNTU-A, in Partial Fulfillment of Master of Business ADMINISTRATION.
SANSKRITHI SCHOOL OF BUSINES AFFILIATED TO J.N.T.UNIVERSITY, ANANTAPURAMU
PUTTAPARTHI Submitted by P.NAGA SAI SNEHA
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TVS MOTOR COMPANY
PROJECT REPORT ON CUSTOMER PREFERNCES AND SATISFACTION LEVELS TOWARDS TVS MOTORS IN “ESWAR TVS MOTORS” BY P.NAGA SAI SNEHA H.T. NO: 14HX1E0049 SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE MASTER’S DEGREE IN BUSINESS ADMINISTRATION (2014-2016)
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TVS MOTOR COMPANY
Ref: TVS/PROJ-MARKETING/2016 Date:6/04/2016 Project Completion certificate This is to certify that Ms. P. Naga Sai Sneha, (Regd. No. 14HX1E0049), of SANSKRITHI SCHOOL OF BUSINESS, PRASHANTHI GRAM, PUTTAPARTHI, ANATAPURAMU DT., A.P, has successfully completed the project titled “Customer Preferences and Satisfaction Level towards their expectations” at TVS MOTORS, HINDUPUR, Anantapuramu Dist., for partial fulfillment of her MBA from 22/02/2016 to 06/04/2016. During this period she was given hands on exposure for 45 days. Her conduct is good. We wish her good luck and all the best in his future endeavors.
SANTHOSH
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TVS MOTOR COMPANY
CERTICATE FROM GUIDE This is to certify that the project entitled “Customer Preferences and Satisfaction Level
towards
their
expectations”
at
TVS
MOTORS,
HINDUPUR,
ANANTAPURAMU Dist., is a bonifide work of P. Naga Sai Sneha, a student SANSKRITHI SCHOOL OF BUSINESS bearing Roll No.14HX1E0049, and was successfully completed at TVS MOTORS, semester–IV, of MBA 2014-2016 Academic year for the partial fulfillment of the award of MASTER OF BUSINESS ADMINISTRATION to the best of my knowledge it is an original piece of work and it has not been previously submitted as a part of other degree or diploma of any other business school or university.
I wish her all the best in her career endeavors.
KARIMULLA BASHA (H.O.D)
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TVS MOTOR COMPANY
DECLARATION I here by the declare that this project report entitled “Customer Preferences and Satisfaction Level towards their expectations” at TVS MOTORS , HINDUPUR, has been prepared by me during the months of 45 days to be submitted to SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi in practical fulfillment
for
the
awarded
degree
MASTER
OF
BUSINESS
ADMINISTRATION prescribed by JAWAHARLAL NEHURU TECHNOLOGY UNIVERSITY, Anantapuramu. Under the guidance of Karimulla Basha Head of the Department, SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi. I also declare that this project report is the result of my own effort and that has not been copied from any of the earlier reports submitted by anybody to ‘JAWAHARLAL NEHURU TECHNOLOGY UNIVERSITY’ for the award of any degree in diploma. I also assert that the information collected by me for TVS MOTORS, HINDUPUR, ANANTAPURAMU District., A.P. will be kept confidential.
(P.Naga Sai Sneha)
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TVS MOTOR COMPANY
Acknowledgement My profound thanks and deep sense of gratitude are due to authorities of TVS MOTORS who gave me the opportunity for doing this project work at HINDUPUR. It’s my primary duty to express my humble thanks and deep sense of gratitude to SANTHOSH for giving me this opportunity, also who acted as a source of inspiration in completing my work by constantly enlightening me with his valuable guidance and suggestions during the period of this project . I also thank the staff for providing me all help and facilities in carrying out my project and making me feel at home. I also express my gratitude towards the help rendered by KARIM sir faculty & HOD, SANSKRITHI SCHOOL OF BUSINESS, Puttaparthi in completing this project work. Finally I thank all my friends for spending their valuable time providing their valuable suggestions in successful completing of this project.
(P.NAGA SAI SNEHA)
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TVS MOTOR COMPANY
INDEX S.NO
CONTENTS
PAGE NO
CHAPTER-1
INTRODUCTION
9
CHAPTER-2
THE STUDY DESIGN
13
CHAPTER-3
PROFILE OF THE COMPANY
19
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
CHAPTER-5
51 72-81
FINDINGS
73
SUGGESTIONS
75
CONCLUSION
76
QUESTIONNAIRE
77
BIBLOGRAPHY
81
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TVS MOTOR COMPANY
INTRODUCTION It gives me an immense pleasure to present you this entire project. The topic is “A STUDY REPORT ON CUSTOMER PREFERENCE AND SATISFACTION LEVEL TOWARDS TVS MOTORS IN HINDUPUR”
the
study is undergone at ESWAR TVS. The project report
focuses on customer satisfaction and post-sale
services, of ESWAR TVS motors. A two wheeler showroom in HINDUPUR.
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TVS MOTOR COMPANY
CHAPTER - 1 INTRODUCTION
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TVS MOTOR COMPANY EXECUTIVE SUMMARY Topic of the study: “A study report on Customer Preferences and Satisfaction level towards ESWAR TVS MOTORS in HINDUPUR”. Need for study: To understand the Customer Preferences and satisfaction level towards of the customer regarding the service provided by ESWAR TVS, to understand what are the customer requirement and improvement required by them in service. Objective of the study: To knows the customer satisfaction level towards services of ESWAR TVS. To knows the problems presently faced by the customers at ESWAR TVS. To study the post sales service performance. To know the new area of improvement. To study the pre-purchase and post-
purchase behavior of customers of TVS Motors in Anantapuramu. To study the factors affecting the purchase behavior of customers. To study the satisfaction level of customers towards various attributes / features of TVS Motors.
ABSTRACT: This research is outcome of the study conducted on Pre-purchase and Postpurchase Behaviour of Customers with reference to TVS Motors in Erode District. This study was carried out for a period of 9 Months from in Hindupur. The objective of conducting this project work is to identify the attitude of twowheeler owners towards TVS Motors. For this purpose 300 two-wheeler owners/customers were taken as sample for the study in order to get the needed information. The study is a descriptive type and convenient sampling is used. The data are collected from survey using questionnaire through interview schedule.
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TVS MOTOR COMPANY Consumers make three types of purchases: trial purchases, repeat purchases and long term commitment purchases. When a consumer purchases a product (or brand) for the first time and buys a smaller quantity than usual, this purchase would be considered a trial. Thus, a trial is the exploratory phase of purchase behavior in which consumers attempt to evaluate a product through direct use. The collected data were consolidated and interpreted by using statistical tools like percentage analysis, weighted average ranking method and chi-square test. Tables and charts are used for representation purpose. From this survey, it was found that TVS vehicles are mainly preferred for its Power & Pickup, Safety & Comfort and Design. Performance is a major factor for purchasing TVS brand. TVS motors has to update its technology to meet the changing customer needs and preference to cope up with the competitions in the market and adequate steps should be made to increase the quality in their services for better customer satisfaction. A search for information before making a purchase decision is known as prepurchase behavior. Purchasing is a dynamic science and also most important function of every family. A home maker must devote time, attention and energy to it. It is influenced by certain considerations which lead the consumers to select a particular brand of products. Besides, the availability of wide. To study the buyers opinion about the services rendered by dealers in Hindupur.
A search for information before making a purchase decision is known as prepurchase behavior. Purchasing is a dynamic science and also most important function of every family. A home maker must devote time, attention and energy to it. It is influenced by certain considerations which lead the consumers to select a particular brand of products. Besides, the availability of wide varieties of brands aggregates and complicates the act of purchasing. Page-
TVS MOTOR COMPANY Purchasing is complicated involving many decisions as each family differs widely. The stages are,
1. Problem Recognition 2. Information Search and 3. Evaluation of Alternatives.
The buyer’s satisfaction is a function of the closeness between the buyer’s expectations and the product’s perceived performance. If performance falls short of expectations, the customer is disappointed, if it meets expectations, the customer is satisfied, if it exceeds expectations, and the customer is delighted. The larger the gap is between expectations and performance, the greater the consumer’s dissatisfaction. Satisfaction or dissatisfaction with the product will influence a consumer’s subsequent behavior. If the consumer is satisfied, he or she will exhibit a higher probability of purchasing the product again. The satisfied customer will also tend to say good things about the brand to others. Marketers say “Our best advertisement is a satisfied customer”. Dissatisfied consumers may abandon or return the product. They may seek information that confirms its high value.
LIMITATIONS: To offer suggestions based on the result of the study. This study is applicable only to TVS Motor Industry (P) Limited, Hindupur. Time duration for this study is limited for nine months from Nov-2011 to July2012. The study does not include comparison between two Wheeler brands.
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CHAPTER-2 STUDY OF THE DESIGN
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Research Design: Primary Source: Questionnaire & Personal interaction. Secondary Source: Company data through Internet. Sample Size: 100 customers Location: Hindupur.
RESEARCH METHODOLOGY “A research design is the specification of methods and procedures for acquiring the information needed. In this study, researcher used Descriptive Research. A research design thus specifies, the type of information required the sources of the information and the methods or techniques of data collection”.
SAMPLE DESIGN: The study uses primary data collected from customers using TVS vehicle. 300 customers were selected for the study in Hindupur as sample area. In this research, convenience sampling was adopted. Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it. Convenience sampling is most often used forgetting some basic information quickly and efficiently. Outcome & Benefits of the study: The outcomes of this project would give the Organization a clear understanding about the customer feedback as well as their satisfaction level and also to understand what the problems faced at the time of service. With the help of this study report the organization come to know the customer feedback and make improvements in the required area. Page-
TVS MOTOR COMPANY
LITERATURE REVIEW: About Customer Preference Customer preference occurs when the experience obtained from transaction match expectation. Customer may forget experience that match expectation although, customers will generally notice and also remember those experience that deviated from expectation. This stage is particularly known as dissatisfaction results in to a feeling of dissonance in case where an experience obtains from product/sender falls short of expectations. In opposite situation i.e. state of satisfaction it may result in to repurchase of product/ service as case may be. One has to accept the fact that people i.e., employee in an organization play a crucial role in determining, and delivering of the level of service quality and ultimately consumers satisfaction. It has been observed that even manufacturing organization have gradually realized the fact that along with tangible offering, intangible customer services the only possible distinct way to create a point of differentiation and positioning in to the competitors. It is needless to state companies need to manage customer contact effectively where the desired outcome is a satisfied customer. Customer's satisfaction data customer data provides early warning sign of problems before they show up in revenue and down in profit. Customer satisfaction Customer satisfaction is to the success. Getting your customer to tell you what’s good about your products or services, and where you need improvement helps you to ensure that your business measures up to their expectations. The Attached file contains a customer satisfaction survey form designed to help gather. This important Page-
TVS MOTOR COMPANY information .it was designed to make it easy for customer to fill out and to make it easy for you to quickly customize to exactly match your company activities. It also includes suggestion for distributing the form. Ensuring that customer that will be return in the form and following up on comments. Here are a few principles given by Steve smith. The goal is to exceed customer expectation. The more the employee satisfaction, the more the customer satisfaction. Customer satisfaction is necessary, but not sufficient how many times do Satisfied customer switch brands? Answer, a lot. All initiative must be derived from defined problems. For instance , Dissatisfied customers don’t buy. That’s an example of a clear problem. Initiative must produce either measurable or conceptual benefits. Distinguish between the two benefits types. The plan must be clear and congruent. The plan must be resonate with the VP and at least a minority of managers who agree with the objective and initiative. The following items amplify customer satisfaction given by Steve smith
Quality of a company’s product and service.
Quality of the relationship between the co agent the customer. Responsiveness Thoroughness Creativity
MANAGEMENT PROBLEM: Through this project, the sales and operation manager want to know the post and pre sales service performance and to analyze the satisfaction level by the feedback of the customers. To know the quality of service and improvement to be made in the service provided by ESWAR TVS. STATEMENT OF THE PROBLEM: Page-
TVS MOTOR COMPANY There are many two wheeler brands available in the market but customers go only for a selected brand. This highly depends on the behavior of customers during the purchase of vehicle. The customer preference may vary from each other, depending on the factors like after sales service rendered by the dealers, brand name, price, performance, mileage, etc. during the purchase of vehicle. These factors in two wheelers play a key role in ensuring the brand image and long term credibility of the company. The behavior of customer changes rapidly before and after the purchase of vehicle. The researcher through this study has aimed to find out the factors affecting the prepurchase and post-purchase behavior of the customers and customer’s satisfaction on various factors. Research problem: To find the problems faced by the customers and to know the new area of improvement with the help of customer feedback. Through this project, the sales and operation manager want to know the post sales service performance and feedback of the consumers, Organization want to know the quality of service and improvement to be made in the service provided by ESWAR TVS. Purpose of the Study: To understand the Customer Preferences and satisfaction level regarding the service provided by ESWAR TVS, to understand what are the customer requirement and improvement required by them in service. Scope of the study: Hindupur The Scope is very limited because attitude of the people change according to the time. The study is restricted to HINDUPUR and ANANTAPURAMU Dist and that to among 100 respondents The study is conducted for 45 days. The study is restricted to certain area .so it could not give an accurate picture about Andhra Prasad. Page-
TVS MOTOR COMPANY
Objectives of the study: To study the pre-purchase and post-purchase behavior of customers of TVS
Motors in ANANTAPURAMU.
To study the factors affecting the purchase behavior of customers
To study the satisfaction level of customers towards various attributes / features of TVS Motors
To study the buyers opinion about the services rendered by dealers in Hindupur.
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CHAPTER-3 PROFILE OF THE COMPANY
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ORGANIZATION CHART Chairman
Managing Director
Director
TVS Sales
Sales Manager
TVS Service
Office executive
Supervision
Mechanics Sales Executive
Supervisor
Mechanics
Sales Executive
RTO Co-coordinator
Assistant
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TVS MOTOR COMPANY
ORGANISATION PROFILE Name of the Organization
: Eswar TVS
Address of the company
: Eswar TVS Motors, Penugonda Road, Hindupur.
ESWAR TVS MOTORS Eswar TVS motors is a part of Eswar Motors is one of the major automobile dealers in Hindupur, which is spread into various diversified. Though the people of Hindupur may know it just in the name of dealer of automobiles but it has spread it net into various business units. So let me tell its profile right from beginning of its inception if the foundation of the business it started with.
The History: 1920: 1950: 1951: 1954: 1958:
The business stared with the landmark if mill and oil mill. One of partners being educated in the field of engineering with mechanical and electrical stated with the business in automobiles. Manic bag automobile came into light, know for dealers in automobile TVS Motors got the dealership of MICO and PERKINGS ENGINES TVS Motors came the big screen by getting the dealership of Ashok Leyland (heavy commercial vehicles) from Hinduja groups. Along with the dealership of Ashok Leyland, Manic bag even stepped in the
dealership of international tractors. 1959-60 Started with machine shop in the name of Manic bag garage and industries.
1983-84 Got the dealership of two wheelers from TVS automobiles and started with dealership of TVS mopeds, later with motorbike-IND SUZUKI, and finally also with dealership scooterettes… TVS Scooty, Suzuki
1992
Fiero, Victor. Gave up the dealership of Ashok Leyland (heavy commercial vehicles) of the Hinduja group and diverting towards TATA Page-
TVS MOTOR COMPANY MOTORS. Where it had the various types of vehicles to the customer, LCV-light commercial vehicle, HVC-Heavy commercial vehicles, MUV-Multi Utility Vehicles, PCD-Passenger Car Division, since from the year 1998. It has the unique distinction of having sold nearly 4 million the
highest ever in India. It exports its range of products to 17 countries worldwide. Its unrelenting pursuit of customer satisfaction in all aspects if manufacturing of 2-wheeler is reflected in over 6 million satisfied owners of mopeds, motorcycles and scooters. Its 4000 highly motivated employees manufacture high quality vehicles from two manufacturing plants in Hosur and Mysore, with a wide dealer network of around 410. Apart from the above-mentioned business diversified taken up by
TVS Motors. It also
has the dealership of BOSCH, Mico
Blaupaunkta (Car stereo) also runs a pollution check center approved by the government of Karnataka and RTO. Head office of Manic bag automobile if situated in Hubli where it
again deals with TATA vehicles (LCV, HCV, MUV, PCD). Apart from having the Head Office, TVS Motors has it branch office at Ankola and Bijapur also…..
TVS GROUP:
TVS Group was established in 1911 by Shri. T.V.Sundaram Iyenger. As one if India’s largest industrial entities it epitomizes Trust, Value and Service.
TVS Motor Company Limited, the third largest two-wheeler manufacture. 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 break through to be etched in history.
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TVS MOTOR COMPANY
TVS Motor Company is the first two-wheeler manufacture in the world to be honored with the hallmark of Japanese Quality –The Deming Prize for Total Quality Management.
TVS Motor Company Limited is one of the largest two-wheeler manufactures and also among the fastest growing companies in the country. It is the largest manufacturer of sub 100cc (50cc, 60cc & 70cc category) 2-wheeler in the world.
It has the unique distinction of having sold nearly 4 million the highest ever in India. It exports its range of products to 17 countries worldwide. Its unrelenting pursuit of customer satisfaction in all aspects if manufacturing of 2-wheeler is reflected in over 6 million satisfied owners of mopeds, motorcycles and scooters. Its 4000 highly motivated employees manufacture high quality vehicles from two manufacturing plants in Hosur and Mysore, with a wide dealer network of around 410.
Products: Two Wheelers in India was set up as a joint venture between TVS and Dunlop, UK in 1960. The company supplies wheels as Original Equipment to all major vehicle manufacturers in the country. Wheels India is entering into collaboration with Titan, the world leader in off-highway vehicle wheels relating to earthmoving, construction and agricultural equipment. Manufacturing Plants are located at Chennai, Tamil Nadu, Rampur, UP and Ranjangaon, Maharashtra. Wheels India has a workforce of 100. Products and Service Wheels for commercial vehicle, cars, jeeps, tractors construction equipment / earth mover and defense vehicle, wire wheels for export and air suspension systems for commercial vehicle.
Launched Models: Page-
TVS MOTOR COMPANY 1. India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980. 2. First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984. 3. Launched India’s first indigenous Scooterette (sub-100 cc variomatic scooters), TVS Scooty in June 1994. 4. Introduced India’s first catalytic converter enabled motorcycle, the 110cc Shogun in Dec 1996. 5. Launched India’s first 5-speed motorcycle, the Shaolin in Oct 1997. 6. Launched TVS Fiero, India’s first 150 cc, 4 stroke motorcycle, in April 2000. TVS has Launched TVS Victor, 4-Stroke 100CC motorcycle, in august 2001; India’s first fully indigenously designed and manufactured motorcycle. 7. Launched TVS Centra in January 2004, a world-class 4-stroke 100CC motorcycle with the revolutionary VT-I Engines for best-in-class mileage. 8. Launched TVS Star in Sept 2004, a 100 a motorcycle which is ideal for rough terrain. Products: TVS Victor: 4-Stroke, 125cc, performance motorcycle with VT-I technology.
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TVS MOTOR COMPANY TVS Apache: 4-Stroke, 150cc high performance motorcycle.
TVS Scooty : 4-Stroke, 90cc scooterette for the new generation.
TVS Centra: 4-Stroke, 150cc premium performance motorcycle.
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TVS MOTOR COMPANY TVS Star: 4-Stroke, 100cc value for money economy motorcycle for good mileage and rugged terrain.
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TVS MOTOR COMPANY
HISTORY OF TWO- WHEELER INDUSTRY IN INDIA According to a study conducted by global consulting firm Frost and Sullivan, the twowheeler industry will be the fastest-growing segment of the Indian automobile industry. The study said that of all personal transportation vehicles, the motorcycle segment will grow the fastest, followed by passenger cars. Automotive sales in the country will get a boost from cuts in the excise duty, new model launches, higher disposable incomes and a changing consumer mindset. The Indian automotive market is now a buyers market and the general economic slowdown makes it imperative for industry participants to stay ahead of demand trends, said the firm. TWO–WHEELER INDUSTRY IN INDIA: The origin of Indian two-wheeler industry can be tracked back to 1948, when Bajaj Auto Ltd., Started importing and marketing Vespa scooters in India. Shortly afterwards, Enfield India Ltd., (Manufacturer of the famous “Bullet” motor bike) started its manufacturing operations in India. This was followed by Ideal Jawa and Escorts Ltd., in 1960s. The motorcycle segment registered a healthy upward trend during the 1960’s and in the early 1970’s, it accounted for 36% of the entire two-wheeler market. However, the motorcycle market in the 1960s and 1970s was largely seller dominated.
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TVS MOTOR COMPANY
TVS MOTORS PROFILE: 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. 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. TVS Motor Company Limited is the third largest two-wheeler manufacturer in India and among the top ten in the world. It has profitable operations overseas, especially in Asian markets, capitalizing on our expertise in the areas of manufacturing, technology and marketing. The company will hone and sustain its cutting edge of technology by constant benchmarking against international leaders.
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Tw o w heelers
Passenger vehicles
Comercial vehicles
Two wheelers Passenger vehicles Commercial vehicles Three wheelers
Three w heelers
78.63% 10.44% 4.03% 3.90%
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TVS MOTOR COMPANY Two-wheelers: Market Size & Growth In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around 77.5% of the total vehicles sold in the period mentioned. Segmental Growth of the Indian Two Wheeler Industry After facing its worst recession during the early 1990’s, the industry bounced back with a 25% increase in volume sales in FY 1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY 1996 and further down to 12% in FY 1997. The economic slowdown in FY 1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% of that year. However, sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure-1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.
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TVS MOTOR COMPANY Demand drivers The demand for two-wheelers has been influenced by a number of factors over the past five years. The key demand drivers for the growth of the two wheeler industry are as follows: Inadequate public transportation system, especially in the semi –urban and rural areas; Increased availability of cheap consumer financing in the past 3-4 years; Increasing availability of fuel – efficient and low-maintenance models; Increasing urbanization, which creates a need for personal transportation; Changes in the demographic profile;
Difference between two-wheeler and passenger car prices, which makes two-wheeler the entry –level vehicles;
Steady increase in the per capita income over the past five years; and Increasing
number of models with different features to satisfy diverse
consumer needs. With the demand drivers listed here operate at the broad level, segmental demand is influenced by segment- specific factors. MARKET CHARACTERSTICS DEMAND Segmental classification and Characteristics The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other sub-segment emerged, viz scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as response to response demographic changes, the introduction or 4-stroke scooters has followed the imposition of stringent pollution controls norms in the early 2000, Besides, these prominent sub- segments, product group within these sub- segments have gained importance in the recent years. Examples include 125CC motorcycles, 100-125CC Page-
TVS MOTOR COMPANY gearless scooters, etc. The characteristics of each of the three broad segments are discussed. Two-Wheeler: Comparative Characteristics Scooter
Motorcycle
Moped
>22,000
>30,000
>12,000
2-stroke,4- Stroke
Mainly 4-stroke
2-stroke
90-150
100, 125, >125
50,60
Kick/electronic
Kick/Electronic
Kick/Electronic
6.5-9
7-8 and above
2-3
90-100
>100
60-70
50-75
50-80+
70-80
High
Highest
Low
Price* (Rs. as in January 2005) Stroke Engine Capacity(cc) Ignition Engine Power (bph) Weight(Kg) Fuel Efficiency (kms Per liter) Load carrying Lowest Segmental Market Share
The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY 1998, accounting for around 42% of the twowheeler sales (motorcycles and mopeds accounted for 37%) and 21% of the market respectively, that year). However, the motorcycles segment that had witnessed high growth (since FY1994) became larger than the scooter segment in terms of market share for the. first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16%> and 5%, respectively. Page-
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Trends in Segmental Share in Industry Sales (FY1996-9MFY2005) While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy growth of 20%), indicating a clear shift in consumer preference. This shift, which continues, has been prompted by two major factors: change in the country's demographic profile, and technological advancements. Over the past 10-15 years the demographic profile of the typical two-wheeler customer has changed. The customer is likely to be salaried and in the first job. With a younger audience, the attributes that are sought of a two-wheeler have also changed. Following the opening up of the economy and the increasing exposure levels of this new target audience, power and styling are now as important as comfort and utility. The marketing pitch of scooters has typically emphasized reliability, price, comfort and utility across various applications. Motorcycles, on the other hand, have been traditionally positioned as vehicles of power and style, which are rugged and more durable. These features have now been complemented by the availability of new designs and technological innovations. Moreover, higher mileage offered by the executive and entry-level models has also attracted interest of two-wheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising that the new set of customers has preferred motorcycles to scooters. With better ground clearance, larger wheels and better suspension offered by motorcycles, they are well positioned to capture the rising demand in rural areas where these characteristics matter most. Scooters are perceived to be family vehicles, which offer more functional value such as broader seat, bigger storage space and easier ride. However, with the second-hand car market developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration and more environment-friendliness. Given the declining difference in prices of scooters and motorcycles in the past few years, the preference has shifted towards motorcycles. Besides a change in demographic profile, technology and reduction in the price Page-
TVS MOTOR COMPANY difference between motorcycles and scooters, another factor that has weighed in favour of motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay an up-front premium while purchasing a motorcycle in exchange for lower maintenance and a relatively higher resale value. Supply Manufacturers As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI). Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the twowheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader TVS. On the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then. Impact Analysis - Two wheelers Robust demand to continue After an 11.4 per cent growth in 2003-04, two-wheeler sales surged by over 17 per cent year-on-year (Y-o-Y) for the first 10 months of 2004-05. Sales growth, led by the sales of motorcycles, escalated consistently during the April to January period due to
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TVS MOTOR COMPANY increasing household incomes, easy availability of finance, and the success of certain new models launched during the period. Two-wheeler demand is expected to grow at a healthy rate of 11-12 per cent from 2004-05 to 2005-06. Rising household incomes, frequent new model launches and the increasing penetration of finance and distribution will act as key growth drivers. The motorcycle segment witnessed stupendous growth in 2004-05 (20.3% Y-o-Y) after a moderate performance (growth of 13.7% Y-o-Y) in 2003-04. The buoyant growth in this segment will be maintained on account of the entry of global players like Honda Motors and Suzuki (entry expected in 2005) and the domestic players' growing focus on motorcycles. The segment is expected to grow by 12-13% in 200506. Led by the ungraded segment, scooter sales are likely to grow by 8%, while moped Sales are expected to stagnate or decline marginally in 2005-06. Budget Impact Neutral impact on the two-wheeler segment A. The reduction in the import duty on used two-wheelers will not affect the
industry... B. The hike in the excise duty on steel will not affect the industry, as Cenvat Credit
can be availed for the same. C. The extension up to March 2007 of 150 per cent deduction on R&D expenditure will marginally benefit domestic two-wheeler players, such as TVS Motors, Bajaj Auto and Kinetic. D. The reduction in personal tax rates will increase household disposable income, which is a positive for two-wheeler demand.
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TVS MOTOR COMPANY Prices and Duties.
Two wheelers Tariffs Percentage
Customs
Excise
2004-05
2005-06
2004-05
2005-06
Two wheelers
61.2
61.2
16.3
16.3
Steel items
5.1
5.1
12.2
16.3
Engines and engine parts
20.4
15.3
16.3
16.3
Other components
20.4
15.3
16.3
16.3
Secure: CRIS INFAC
Major Players Company name
Impact
Impact factors
Bajaj Auto Ltd.
Neutral
A,B,C,D
Hero Honda Motors Ltd.
Neutral
A,B,C,D
TVS Motors Company Ltd.
Neutral
A,B,C,D
Company Network: Page-
TVS MOTOR COMPANY
TVS Motor Company has one of the most extensive networks with over 500 dealers and 2500 Customer touch points. We are the first in the two-wheeler industry to measure customer satisfaction, audited by external consultants of international repute. We have taken care to standardize facilities across all customer touch points. Up gradation of faculties and continuous improvement in all processes is given importance. The company also takes an active part in imparting training and capability building in all areas including sales, service and business management. All our dealers are connected through the extended network of SAP, ensuring operational efficiency.
Supply Chain Management Forming the inner of the extended TVS family; our suppliers are involved at every stage of product development. We extend core values and best practices to all our suppliers. Through continuous training forums we impart TPM (Total Productivity Maintenance) and JIT (Just in Time) practices. TVS suppliers are committed to quality through continuous improvement and up gradation of processes. This has helped them obtain prestigious international certifications like ISO 9000, QS 9000 & TS 16949. The TVS Motor Company R&D team has a strong pool of technical talent supported by state-of-the-art infrastructure capable of developing new and innovative designs. Currently, more than 400 engineers work on developing radically new products and cutting edge engine technologies. Our R&D team has developed the revolutionary Variable Timing Intelligent (VT-i) Engines, one of the most innovative technologies developed in the two wheeler industry. TVS R&D Engineers have published multiple technical papers in international conferences on engine and vehicle technologies. They also have a number of patents to their credit.
Quality is the way of life Page-
TVS MOTOR COMPANY
At TVS Motor Company, every department works in tandem to produce quality product. The people from the pillars of the support, strengthening the overall quality standards and moving towards total customer satisfaction. In our quest to achieves world class levels in quality as well as improvements in design and processes, the company has formed special task forces to monitor quality related performance. The basis tents of TQM, including daily work management, Policy management, Kaizen (continuous improvement), training and standardization are followed across our organization. Acknowledges by the Japanese for Quality. We at TVS Motor Company are proud to have been awarded the prestigious and coveted Deming Prize, instituted by JUSE (Union of Japanese Scientists and Engineers). TVS Motor Company in the only 2wheeler company in the world to have received this award. TVS Motor Company was also awarded the prestigious “TPM Excellence award First category” by Japan Institute of Plant Maintenance (JIPM), rated as the benchmark in TPM excellence in India.
Social responsibility This extended arm of the company believes in social responsibility and has involved itself in several community development initiatives that have significantly improved the standard of living of the people in 51 villages across the country.
Economic development The program enables people below the poverty line these adopted villages to earn their livelihood by involving them in activities that generate income.
Health Page-
TVS MOTOR COMPANY
Health is one of the main focus areas of the Srinivasan Service Trust. Dental care camps; eye camps, health check-up and nutrition programs are conducted. The initiative also focuses on primary health, maternal health, child-care and leprosy eradication.
Infrastructure Development The Company is actively in the community development of the villages by providing infrastructure facilities such as housing, sanitation, roads drains, bus shelters, medial centres and natural resources management.
Rebuilding Quake Hit Villages Suppurated by Rural Research & Development Society and Kutch Nav Nirman Abhiyan, the Company has rebuilt “Goyersama” a village in the District of Gujarat, which was hit by an earthquake of unprecedented scale and magnitude on 26 th Jan 2001.
Education and literacy
In addition to providing infrastructure facilities like new building for school, the Company helps establish computer education programs for school children. The Srinivasan Service Trust has successfully achieved 98% primary school enrollment in the adopted villages.
The performance in January 2006 represents the shape of things to come in the coming months. While the performance of new brands launched last year, in particular, Star City continue to beat expectations, TVS Apache, the new 150 cc motorcycle in the premium segment promises to be a winner as it has already won several coveted awards for its overall performance and style.
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TVS MOTOR COMPANY
TVS Star City is amongst the few bikes that have crossed the sale of 50,000 units per month Star City has enabled the company to make significant inroads in the economy segment of the motorcycle market.
TVS Scooty recorded 17,957 units in January 2006 compared to 14,724 units in the same period last year recording a growth of 22% Scooty Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant player in the ungraded scooter category.
In the export front, TVS Motor Company continued its robust performance having exported 6,374 units in January 2006. Exports recorded a growth of 147% compared to the same period last year.
Milestones:
1980 TVS Motor launched India’s first two–seater 50cc moped –– TVS 50.
1984 The two–wheeler major became the first Indian company to introduce 100cc Indo–Japanese motorcycles.
1994 It launched India’s first indigenous scooterette –– TVS Scooty, a 100cc model.
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TVS MOTOR COMPANY
1996–97 Introduced India’s first catalytic converter–enabled motorcycle, the 110cc Shogun. Launched India’s first 5– speed motorcycle, the Shaolin.
2000 Launched TVS Fiero, India’s first 150cc, 4–stroke motorcycle.
2001 Launched TVS Victor, 4–stroke 110cc motorcycle, India’s first fully indigenously designed and manufactured motorcycle.
2002 TVS becomes the world’s first two–wheeler company to win the world’s most prestigious recognition in Total Quality Management – the Deming Award 2002. TVS wins the Technology Award from Ministry of Science, Government of India for successful commercialization of indigenous technology.
2004 Launched TVS Center, a world class 4–stroke 100cc motorcycle with revolutionary VT– I engine for best in class mileage. Launched TVS Star, a 100cc motorcycle ideal for the rough terrain. TVS wins TPM Excellence award from Japan Institute of Plant Maintenance (JIPM). TVS wins Outstanding design Excellence Award for TVS Scooty Pep.
2005– 06 TVS launches its Indonesian plant. Launched TVS Apache, which set the youth’s imagination on fire. Apache went on to be the Bike of the year for 2006, winning six prestigious awards.
2007 TVS Motor Company rolls out seven new products. TVS launches its Himachal Pradesh Plant at Nalagarh.
2008– 09 Apache Refresh with Rear Disc Brakes was launched in December 2008. TVS Motor company bags two coveted IT awards in September 2008 –– SAP ACE 2008 Award and 2008 Symantec South Asia Visionary Award. Scooty Pep was launched with balancing wheels in August 2008. Scooty Wimbledon Collection launched in June 2008.
Apache RTR FI was launched June 2008.
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TVS MOTOR COMPANY
TVS Motor Company launched the revolutionary 125cc Flame in March 2008. TVS made by its foray into the three–wheeler market with TVS King in March 2008.
2009 TVS unveils ‘High performance’ with Apache RTR 180 in June 2009. TVS scooty Streak was launched. TVS Flame SR 125 launched was June 2009.
TVS Brands: •
TVS Apache
•
TVS Apache RTR FI 160
•
TVS Centra • TVS Fiero FX
•
TVS Flame • TVS Scooty
•
TVS Star • TVS Victor
•
TVS Victor GLX 125
•
TVS XL Super
Group companies: •
TV Sundram Iyengar and Sons
•
Lakshmi Auto Components
•
Lucas Indian Service
•
Axles India
•
Brakes India
•
HaritaGrammer
•
India Motor Parts and Accessories
•
India Nippon Electricals
•
Lucas TVS Limited
•
Madras Auto Service
•
Southern Roadways
•
Sundaram Brake Linings
•
Sundaram Fasteners
•
Sundaram Finance
•
Sundaram Industries Page-
TVS MOTOR COMPANY •
Sundaram Motors
•
Sundaram Clayton
•
Sundaram–Clayton
•
Srinivasan Services Trust
Awards and Achievements:
2012 – CII–ITC Sustainability Awards 2012 •
The Deming Prize – TVS Motor Company is the only two–wheeler company in the world to be awarded the world's most prestigious and coveted recognition in Total Quality Management.
•
Technology Award 2002 from the Ministry of Science, Government of India for the successful commercialization of indigenous technology for TVS Victor.
•
Asian Network for Quality Award 2004 – TVS Scooty Pep won the prestigious 'Outstanding Design Excellence Award' from Business World and National Institute of Design.
•
Progressive Manufacturer 100 Award – TVS wins coveted 2009 Progressive Manufacturer 100 Award for end–to–end automation of the entire business process of its lubricant brand, TVS TRU4.
•
TPM Excellence Award 2008 – First category by Japan Institute of Plant Maintenance (JiPm). Most Investor friendly company by Business Today, one of India's leading business.
•
The 'Good Advertising' award by Auto India Best Brand Awards 2009.
•
SAP ACE AWARD 2007 – The company won the SAP ACE 2007 Award for Customer Excellence in the Most Innovative Netweaver Category.
•
TEAM TECH 2007 Award – TVS Motor Company bagged the TEAM TECH 2007 Award of Excellence for Integrated use of Computer Page-
TVS MOTOR COMPANY Aided Engineering Technologies.TVS APACHE bages 5 coveted awards by leading Auto Magazines.
“Bike of the Year”
CNBC-TC18 AUTOCAR AWARDS 2006
“Bike of the Year”
OVERDRIVE Awards 2006
“Bike of the Year”
Business Standard Motoring Awards 2006
“Indigenous design of the year”
OVERDRIVE Awards 2006
“Design of The year 2006-Two wheeler”
BBC Top Gear design awards 2006
SCOOTY PEP PLUS
“Scooter of the year”
OVERDRIVE Awards 2006
ISOTOPE 200 (CONCEPT BIKE FROM TVS motor Company )
“Design of the Year- Concept Vehicles”
Top Gear design awards 2006
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TVS MOTOR COMPANY
Strategy:
CONSOLIDATION is the current theme at TVS Motor. In the intervening period that is, before new models are rolled out – the company seems to be trying to refocus and offer potential customers more choice with the launch of new variants under the existing badges.
The new variants have been fine-tuned based on customer feedback. They will attempt to offer more value to the customer, even as competitors have been nibbling away at the company’s market share.
The new variants are basically spruced up versions of bikes that have either been performing below expectations or attracting customers only in specific markets.
So, the obvious two to get the cosmetologist treatment are the TVS Victor GX and the Star.
The 110cc Victor GX was not finding many takers from either the 100cc or the 125cc segments. Designed to attract the entry-level bike buyer interested in a bit more of power and style, the Victor GX (and for that matter the GLX) has not been able to stir up the same level of interest among potential customers that the original Victor had managed to do.
Now, TVS is replacing the Victor GX with newly developed Victor Edge, and the principal change is the heart transplant. The old 110cc engine has been hauled out and a slightly tweaked version of the GLX’s 125cc engine has been in its place.
The new, fine-tuned 125cc engine delivers a higher 9.2 bhp of peak power against the 8.1 bhp that the earlier 110cc engine managed. Page-
TVS MOTOR COMPANY
The extra power should give the Edge an advantage in the premium entrylevel bikes category. However, TVS has not chosen to replace the four-speed gearbox with a Five-speed shifter, a feature that more bikes in this segment want as part of the package.
The Victor Edge’s engine performance has been aided by a roller cam follower for reducing friction losses, and this is expected to improve fuel-efficiency. The engine also features larger valves and a reworked air-box for better sir induction.
Overall, the changes boost peak torque to a high 10 Nm at a low 4,000 rpm.
The Edge also features changes to the chassis, including an increased wheelbase and a new box section swing arm for greater stability and better maneuverability, handling and ride. The Edge’s wheelbase has been increased from 1,200mm to 1,240mm, and comes with gas filled shock absorber at the rear.
The other additions are optional alloy wheels and disc brakes, new dual tone side panel stickers with five colour theme options, enhanced grip levers for better feel, and slightly reworked switchgear that feels more study and reliable.
The Edge is priced at Rs. 40,990 (ex-showroom, Channai).
Along with the launch of the Victor edge, TVS has unveiled a new version of the company’s barebones, entry-level 100cc bike.
The Star (spelt as StaR) had replaced TVS’ long standing two-stroke entrylevel bike series – the erstwhile Max 100 and Max 100R – last year.
After the launch of the Star DLX, the slightly jazzed-up version of the basic stripped down model, the TVS Star City, launched earlier this month, will now attempt to offer the entry-level biker who wants to continue to stick within the bounds of this segment, a bit more style and finish. Page-
TVS MOTOR COMPANY
The Star City will target potential, fuel-efficiency conscious 100cc bike buyers who live in the city and will be willing to pay a marginally higher price for more features and better looks and finish quality.
With that target audience, the bike is being offered with a new headlamp fairing and halogen bulb combo, easy-to-read instrumentation with a new blue backlight, push-cancel indicator switches, new spring shock absorbers with a hand-operated pre-load adjustment lever and a new sporty silencer and heat shield combo that feature the same diagonally chopped-off design that Yamaha first brought to the market.
Seat width on the Star City has also been increased slightly to improve ride comfort for long distance travel. The roller cam follower technology that TVS first adopted in the Center has been inducted into the Star City for friction reduction and increased mileage.
The bike will also sport a new, more rigid, reinforced chassis frame and wider three-inch tires at the rear for improved stability and road holding.
Dual tone colours are also being offered and TVS will soon launch a new advertising campaign for all its three new variants-Sciity Pep+, Victor Edge and the Star City.
There was a time, not long ago, when a two-wheeler meant a Bajaj Chetak or an LML Vespa. In the past five years or so, sales of motorcycles have outstripped sales of nearly all other two-wheelers.
Consumer preferences have shifted in favour of motorbikes and though this is partly related to price factors, it is also due to the fact that motorcycles are actually being seen as better vehicles than the heavy and unwieldy geared scooters.
The sales tax rationalization that took place in the 2001 budget resulted in scooters becoming more expensive than before. In addition the government began to enforce strict Euro-emission norms which forced scooter manufacturers to install catalytic converters in existing vehicles or to go in for Page-
TVS MOTOR COMPANY four-stroke engines to reduce pollution, thus adding to the costs of scooters. But, fortuitously, motorcycles were already in tandem with these new norms.
Motorcycle, being more suited for commuting than any other vehicle, combines a variety of factors such as comfort, ability to handle bad roads and intrinsic stability. All this makes it extremely suitable for the Indian market.
Here comes gearless but, curiously enough, in the past one year the scooter has not only back, but is surging ahead in sales-and this time it is sleeker, lighter and, most importantly, without gears. Indeed, in a number of B and C cities
and small towns across India, women and teenagers are taking to
gearless scooters like “ducks to water”.
It’s easy to see why. Gearless scooters are light and easy to handle, have sufficient compartments to carry goods and go easy on fuel, much like mopeds, with their almost legendary fuel-saving ability.
In fact, in recent times, auto industry experts say there has been a discernible shift of buyers from mopeds to gearless scooters as the latter cost just a coupe of thousand more and come with sturdier bodies and better looks.
Around two year ago when sales of geared scooters started falling, a number of companies led by Honda Motor and Scooters India, which did not have a motorbike model in the market, launched gearless scooters in an effort to grow this segment.
The gearless scoters segment (75-125 cc) comprises four major players: Honda with the Active and the Dio; Kinetic with the Zoom and the Nova; Bajaj with the Sunny and the Saffire; and TVS with the Scooty.
The Honda Active’s fast growth has encouraged other players to come out with new offerings to increase the market shar. One example is Kinetic Engineering; wit sister company Hinetic Motor, who are the pioneers in the gearless scooters segment and the largest manufacturer of gearless scooters in India starting from humble beginnings with the Luna moped in 1970. Page-
TVS MOTOR COMPANY
Kinetic energy:
In the past one year the Kinetic group has launched a number of automatic scooter models in the domestic market, which has helped it to get customers who might have otherwise opted for motorcycles. The company is focusing on designing scooter models specifically suited for Indian conditions.
For instance, its 115-cc four-stroke Kinetic Nova is designed for Indian conditions in its styling and utility. Its success has encouraged the company launch new variants with special features. The company has also come out with a two-year warranty for its Nova, launched last year, as an added attraction to foster customer retention.
In January 2003 the Kinetic group launched the premium Nova DLX priced at Rs. 35,576 ex-showroom price Delhi, and announced that it would launch another gearless scooter by the end of the year.
Also recently, the Nova DLX launched the Mileage Expert, an electronic device, which keeps the rider informed of fuel efficiency during the ride and the company claims it improves efficiency by 10 percent.
Southern spirit:
The South-based TVS Motor is another major player in the gearless scooters market It is also aspiring to become a leadership position in the gearless scoters segment.
TVS is planning a new Scooty with a 100-plus cc engine and as part of the flexible and low-cost product development strategy, the new Scooty is expected to share the engine with the TVS Victor, which comes with a 110 cc four-stroke engine. Company sources say the Victor engine can be easily fitted into the new Scooty with minor modification.
Currently, the Scooty is available in the sub-75cc scooterette segment where it competes against Bajaj Auto’s Sprit and Sunny. While the lower-priced variant Page-
TVS MOTOR COMPANY comes with a 60cc engine, the launched Scooty Pep has 75cc four-stroke engine.
TVS is also a major in the mopeds segment with its TVS Champ and hopes to replicate its success with gearless scooters as well. The new Scooty launch is part of TVS’ larger plan to beef up its product portfolio.
In all, TVS plans to roll out six new models of scooters and motorcycles next fiscal with a total investment of Rs. 600 corer during the next three years to expand its product range in the domestic market.
India is the second largest manufacturer and producer of two-wheeler in the world. It stands next only to Japan and China in terms of the number of twowheelers produced and domestic sales respectively.
Two Wheeler segment as a whole during the year 2004-05 grew by over 15% Backed by Government’s initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of rural people, the two wheeler industry was able to achieve the record performance of crossing 6 million two wheelers with exact sales standing at 6,208,860 during the year 2004-05.
Hero Honda
47%
Bajaj Auto
30%
TVS Motors 17%
Future Focus
In the future TVS Motor Company will be one among the top two 2 wheeler companies in India and one among the top five 2-wheeler companies in Asia.
We will have profitable operations overseas, especially in Asian markets, capitalizing on our expertise in the areas of manufacturing, technology and marketing. The Company will hone and sustain its cutting edge of technology by constant benchmarking against international leaders. TQM will be a way of life and guide all our endeavors. Page-
TVS MOTOR COMPANY
Performance vis-a-vic competitors:
With rise in per capita income, lowering of interest rates, changes in consumer preference towards trendier two-wheelers, there was a conscious shift in the composition of two wheeler industry led by increase in the demand of motorcycle as against scooters and moped. In FY04 out of the total twowheeler industry of 506 m units, the share of motorcycle was 77% as against 42% in FY99. During the period FY97 to FY04, while two-wheeler industry grew CAGR of 10% the demand for motorcycle grew at 27% CAGR. However, TVS managed to achieve a CAGR of 11%. Thus while competitors were cashing on this boom, TVS’ market share was declining due to lack of a 4 stroke model in its stable. This fall has been somewhat restricted with the introduction of ‘Victor’ in 2003.
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TVS MOTOR COMPANY
CHAPTER - 4 DATA ANALYSIS AND INTERPRETATION Page-
TVS MOTOR COMPANY
ANALYSIS AND INTERPRETATION 1
Are you belonging to which age group in the following?
Response
No of Customers
Below 20
8
21-30
40
31-40
25
41-50
17
Above 50
10
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TVS MOTOR COMPANY
No of Customers 45 40 35 30
No of Customers
25 20 15 10 5 0 Below 20 21-30
31-40
41-50 Above 50
Interpretation: The highest number of respondents falls in the age group 20-40. The rest of the population under study can be listed in the following descending order of distribution – the working age group, the older age group, the middle age group, and senior citizens
2
Will you prefer which following model of TVS model?
Response
No of Customers
TVS XL
48
SCOOTY SERIES
6
PEP SERIES
10
VICTOR SERIES
15
STAR CITY SERIES
12
APACHI SERIES
9
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TVS MOTOR COMPANY
No of Customers 60 50 40 30 20 10 0 SE RI ES CI TY
SE RI ES ST AR
PE P
TV S
XL
No of Customers
Interpretation: In the TVS bikes the customers are giving more preference to TVS XL , Star city series & Victor series rather than Scooty series, Apachi and PEP series.
3
Are you belonging to which income level respondent?
Response
No of Customers
Below 3000
19
3001-6000
39
6001-8000
11
8001-10000
9
Above 10,000
22
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TVS MOTOR COMPANY
No of Customers 45 40 35 30 25 20 15 10 5 0 10 ,0 00
Ab ov e
10 00 0
80 01 -
80 00 60 01 -
60 00 30 01 -
Be lo w
30 00
No of Customers
Interpretation: In the base of economically, It is used in the base of income i.e. 19% income group below 30000, 39% of 3001-6000, 11% of 8001-10000 and rest of used in the rarely above income 10,000.
4. What type of occupation does the consumer belonging?
Response
No of Customers
Farmer
20
Private employee
34
Government employee
10
Student
7
Business
29 Page-
TVS MOTOR COMPANY
No of Customers 40 35 30 25 20 15 10 5 0 Bu si ne ss
pl oy ee en te m G ov er nm
Fa rm
er
No of Customers
Interpretation: Occupationally and professional the motor bike has been used i.e. 20% preferred by farmers, 34% preferred by private employees and 10% preferred by government employees & 7% preferred by students and remaining 29% preferred by business people.
5. Mostly on what type of purpose respondent use vehicles?
Response
No of Customers
Personal use
83
Official use
17
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TVS MOTOR COMPANY
No of Customers 90 80 70 60
No of Customers
50 40 30 20 10 0 Personal use
Official use
Interpretation: With the above analysis, from the 100 respondents, 83% are using for the purpose of personal , and the remaining 13% of respondents are using for official .
6. What type of purchase mode of the bike does respondent prefer?
Response
No of Customers
Reddy cash
58
Bank loan
24
Private loan
18 Page-
TVS MOTOR COMPANY
No of Customers 70 60 50 No of Customers
40 30 20 10 0 Reddy cash
Bank loan
Private loan
Interpretation: With the above analysis, from the 100 respondents, 58% people are prefer to buy in ready cash mode & 24% people are prefer to buy using bank loan and remaining 18% people are prefer to busy using private loan.
7. What type of opinion does respondent see on price?
Response
No of Customers
Highly satisfied
10
Satisfied
60 Page-
TVS MOTOR COMPANY Neutrally satisfied
10
Not satisfied
12
Highly not satisfied
8
No of Customers 70 60 50 40 30 20 10 0 at is fe d H ig hl y
no ts
sa tis fe d eu tr al ly N
H ig hl y
sa tis fe d
No of Customers
Interpretation: Out of the responses obtained from 100 customers 10% said that they highly satisfied regarding price, 60% said that they satisfied, 22% said that they not satisfied and 8% said that they highly not satisfied.
8. How customer preferences before purchasing the bike?
Response
No of Customers
Brand Name
15 Page-
TVS MOTOR COMPANY Price
19
Performance
28
Mileage
21
After sale service
17
No of Customers 30 25 20 15 10 5 0 se rv ic e Af te rs
al e
an ce Pe rfo rm
Br an d
N
am
e
No of Customers
Interpretation: From the above it can be stated that general normally any one while purchasing a four wheeler most of the members are seeing 28% of members are seeing performance and 21 % of members are seeing Mileage And 19% of members are seeing PRICE and 17% of members are seeing after sale services and 17% of members are seeing Brand Image.
9. What education qualification of respondent belonging?
Response
No of Customers
Page-
TVS MOTOR COMPANY Illiterate
20
School level
2
College level
35
Others
43
No of Customers 50 45 40 35 30 25 20 15 10 5 0 O th er s
le ve l Co lle ge
Sc ho ol le ve l
Illi te ra te
No of Customers
Interpretation: In the base of education qualification, with the above analysis, from the 100 respondents, 20% of the people are illiterate and 2% of the people are school level & 35% of the people are college level and remaining 43% of the people are others.
10 What are the opinions does the respondent have after sale services?
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TVS MOTOR COMPANY Response
No of Customers
Highly satisfied
14
Satisfied
45
Neutrally satisfied
32
Not satisfied
8
Highly not satisfied
1
No of Customers 50 45 40 35 30 25 20 15 10 5 0 at is fe d no ts H ig hl y
sa tis fe d eu tr al ly N
H ig hl y
sa tis fe d
No of Customers
Interpretation: Out of the responses obtained from 100 customers 14% said that they highly satisfied after sale service, 45% said that they satisfied, 32% said that they neutrally satisfied and 8% said that they not satisfied and remaining 1% people are said that highly not satisfied after sale service provided by TVS motors.
11
About convenience does the respondent are satisfying when the delivered as per the allotment times? Page-
TVS MOTOR COMPANY
Response
No of Customers
Highly satisfied
25
Satisfied
40
Neutrally satisfied
15
Not satisfied
10
Highly not satisfied
10
No of Customers 45 40 35 30 25 20 15 10 5 0 at is fe d no ts H ig hl y
sa tis fe d eu tr al ly N
H ig hl y
sa tis fe d
No of Customers
Interpretation: According to my survey, Out of 100 respondents 25% of the people highly satisfied at the time of vehicle delivered as per the allotted time in TVS motod. And 40% of the people satisfied & 15% of the people neutrally satisfied & 10% of the people not satisfied and the remaining 10% of the people says hoghly not satisfied about the time of vehicle delivered as per the allotted time in TVS Motors.
12 Do you feel the service charges /repair charges were reasonable? Page-
TVS MOTOR COMPANY
Response
No of Customers
Excellent
28
Good
38
Bad
24
Very poor
10
No of Customers 40 35 30 25
No of Customers
20 15 10 5 0 Excellent
Good
Bad
Very poor
Interpretation: In the sample taken out of 100 respondents 28% of the people feel service charges/repair charges were Excellent & 38% of the people says good. On the other hand 24% of the people says bad and remaining 10 % of the people feel the service charges/repair charges were very poor.
13 Do you recommend your friends to purchase? Page-
TVS MOTOR COMPANY
Response
No of Customers
Yes
71
No
29
No of Customers 80 70 60 50
No of Customers
40 30 20 10 0 Yes
No
Interpretation: A look at the chart shows that 71% of the members are suggesting to friends and 29% of the members are not suggesting.
14 Satisfaction level of quality of service after sale being provided? Page-
TVS MOTOR COMPANY
Response
No of Customers
Highly satisfied
55
Satisfied
25
Neutrally satisfied
12
Not satisfied
8
Highly not satisfied
0
No of Customers 60 50 40 30 20 10 0 at is fe d no ts H ig hl y
sa tis fe d eu tr al ly N
H ig hl y
sa tis fe d
No of Customers
Interpretation: Out of the responses obtained from 100 customers 55 % said that they highly satisfied of quality of service after sale being provided, 25% of the people are satisfied, 12% of the people are neutrally satisfied and 8% of the people that they highly not satisfied of quality of service after sale being provided.
15 What is the opinion regarding mileage of the preferred bike? Page-
TVS MOTOR COMPANY Response
No of Customers
Highly satisfied
40
Satisfied
30
Neutrally satisfied
15
Not satisfied
10
Highly not satisfied
5
No of Customers 45 40 35 30 25 20 15 10 5 0 at is fe d no ts H ig hl y
sa tis fe d eu tr al ly N
H ig hl y
sa tis fe d
No of Customers
Interpretation: Out of the responses obtained from 100 customers 40% said that they highly satisfied regarding Mileage of the bike, 30% said that they satisfied, 15% said that they neutrally satisfied and 10% said that they not satisfied and remaining 5% said that they highly not satisfied about mileage of the preferred bike.
16 On what basis do you prefer to buy tvs model? Page-
TVS MOTOR COMPANY
Response
No of Customers
Product variety
21
Brand
24
Pricing
35
Offers
20
No of Customers 40 35 30 25
No of Customers
20 15 10 5 0 Product variety Brand
Pricing
Offers
Interpretation: From the above table it is shown that 35% of the respondents are citing Price as the factor. While 24% cited brand image as the reason for choosing the service 21% cited Product variety as the factor. As far as Offers is concerned only 20% of the respondents have quoted it as the reason for choosing this service.
17 What type of service betterment do you expect from tvs motors? Page-
TVS MOTOR COMPANY Response
No of Customers
Better Service
45
Better settlements & claims
35
Better returns
15
Others
5
No of Customers 50 45 40 35 30 25 20 15 10 5 0 re tu rn s Be tt er
Be tt er
Se rv ic e
No of Customers
Interpretation: From the source of field survey, out of 100 respondents 45% of the people expect betterment of service from TVS motors & 35% of the people better settlements and claims & 15% of the people better returns & 5% of the people need other futures in TVS motors.
18 Based on your overall experience would you visit this service centre again? Page-
TVS MOTOR COMPANY Response
No of Customers
Yes
72
No
28
No of Customers 80 70 60 50
No of Customers
40 30 20 10 0 Yes
No
Interpretation: According to my survey 72% of people like to say that, they are recommended to visit this service centre again & 28% of the people are not recommended to visit this service centre again.
19 Did you find service centre staff co-operative, Courteous & polite? Page-
TVS MOTOR COMPANY
Response
No of Customers
Excellent
21
Satisfied
45
Average
23
Not satisfied
8
Highly not satisfied
3
No of Customers
at is fe d
No of Customers
H ig hl y
no ts
Av er ag e
Ex ce lle nt
50 45 40 35 30 25 20 15 10 5 0
Interpretation: Out of 100 respondents 21% of the people say excellent service centre staff very co-operative in TVS motors. 45% of the people satisfied & 23% of the people average & 8% of the people are not satisfied and remaining 3% people are highly not satisfied.
20 Why do you prefer for this service? Page-
TVS MOTOR COMPANY
Response
No of Customers
Convenience
53
Economical
30
Security
4
Features
13
No of Customers 60 50 40 30
No of Customers
20 10
Fe at ur es
Se cu rit y
Ec on om ic al
Co nv en ie nc e
0
Interpretation In today’s busy world convenience seems to be the most overriding factor. It is clear that 53% of the respondents have preferred this service due to easy & hands free availability, making it convenient to use it. On the other hand 30% have said economy of the service, and 4% of the respondents said that security as their choice. While 13% said features as the reason for preferring the service.
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TVS MOTOR COMPANY
CHAPTER - 5 FINDINGS CONCLUSION SUGGESTIONS QUESTIONARIES BIBILOGRAPHY
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TVS MOTOR COMPANY
FINDINGS
Majority of the respondents in the age group between 21 – 30 years are using TVS XL Super series and majority of the respondents in the income level of Rs. 3001 – 4000 are satisfied with the price of TVS vehicle.
Majority of the respondents are using the vehicle for personal use and they had taken test drive before purchase. Most of the respondents in the school level education and they are satisfied with the after sales service provided by the dealer.
Majority of the respondents feel comfort with the after sales service and they recommend the TVS brand to others.
TVS vehicles are mainly preferred for its Power & Pickup and Safety & Comfort. Majority of the respondents are satisfied with the Design / Style and Safety & Comfort and also feel that the performance of TVS is good.
Majority of the respondents using XL Super series belongs to the occupation of business and private employees and majority of the respondents get aware through Friends & Relatives belongs to the occupation of private employees and business persons.
Most of the respondents (72%) are satisfied with the service of the salesman and least number of respondents(28%) are not satisfied.
To most of the respondents (85%) the vehicle is delivered on promised time. Only two few of the respondents (15%) vehicle is not delivered on promised time.
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TVS MOTOR COMPANY
60% of the respondents were offered test drive and 40% of Respondents were not
offered the test drive. According to the survey 30% of the respondents feel good and 24% Of respondents feel satisfactory and 22% of the respondents feel excellent 18% of
respondents feel moderate and 6% of respondents feel unsatisfactory. Most of the respondents (34%) are satisfied and 26% of respondents Are niether neither satisfied nor satisfied 18% of respondents are dissatisfied 14% of respondents are not at all satisfied and 8% respondents are fully satisfied.
Most of the respondents (60%) feel brand name is important 40% of the respondents feel brand name is not important.
Most of the respondents feel mileage (80%) price (75%) and low maintenance (60%) and 30% of respondents feel brand name is important 20% of respondents feel wide range of respondents is important.
38% respondents purchased Vehicles before 3 years 32% of Respondents purchased before 1- 2 years 18% of respondents Purchased before 6 months and 12% of respondents purchased before 3 – 5 years.
Most of the respondents are need of less labour charges (35%)And Service in time (32%) and 18% of respondents need reliable Service and few of the respondents need well trained mechanics (8%) And availability of Spares (7%).
Most of the respondents face the problem of delay in service (39%)And high price of spare parts (36%) some of the respondents face problem of not easily availability of spares (17%) and low quality Of spare parts (7%).
Most of respondents rate the service performance as good (42%) And Average (33%) some of the respondents rate as very good (16%) And bad (9%).
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TVS MOTOR COMPANY
Most of the respondents are need of increase in number of service stations to reach maximum number customers.
Most of the respondents have complaint about delay in availability of spare parts and high price.
SUGGESTIONS
TVS Motors has to update its technology to meet the changing customer needs and preferences to cope up with the competitions in the market.
Mileage can be improved to increase customer satisfaction as the price of petrol is high.
Offers & Discounts can be given by the dealers to delight the loyal customers. Helmet and its holder can be provided as a gift for the new customers.
Though customers are satisfied by the free service offered by the dealers, adequate steps might be made to increase the quality in services that will result best in customer satisfaction.
The company can increase the service stations and reduce their service charges.
To fulfill the needs of the respondents Eswar TVS should set new branches in the Anantapuramu and near surroundings to reach the maximum number customers. Page-
TVS MOTOR COMPANY
According to the survey most of the respondents are in the need of the improvement in providing service in time and lesslabour charge Eswar TVS should take action by recruiting well trained service staff and. And implement machineries to provide service in time.
To know the problems faced by the customers at the time of post sale service should conduct free check up camps and collect the feedback of at the time of service.
CONCLUSION
TVS is one of the largest automobile industries in India. It has created a notable place in the minds of the people.
Its growth has created a milestone changes in the preference for two wheelers.
But new arrivals of various other brands have really shaken its market in an expected manner.
But better services like after sales service, free service, customer relation will retain the existing user in the same brand.
Preference should be given not only in expanding the market.
This can be successfully carried out only by rendering services in a satisfying manner.
If it is properly executed then the company will be ranked first in the market.
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TVS MOTOR COMPANY
A company which wants to target a particular segment should change its marketing plan to suit the needs of its target group.
Thus the behavioral changes of customers before and after the purchase of vehicle is based on the performance of vehicle and after sales service provided by the dealers.
Most of the respondents are satisfied with the services of Eswar TVS motors.
Less labour charge and service in time service in time and increase in number of service station they are three major parameters in demand.
The sale of scooty and victor are high as compared other vehicles. Most of the respondents feel good about TVS two-wheeler vehicles.
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TVS MOTOR COMPANY
QUESTIONAIRE Customer preference and satisfaction level towards TVS motors NAME
:
PROFESSION
:
(M) (F)
QUESTIONARIES 1. Are you belonging to which age group in the following? Below 20 21-30 31-40 41-50 Above 50 2. Will you prefer which following model of tvs model? TVS XL SCOOTY SERIES PEP SERIES VICTOR SERIES STAR CITY SERIES APACHI SERIES 3. ARE YOU BELONG TO WHICH INCOME LEVEL RESPONDENT? Below 3000 3001-6000 6001-8000 8001-10000 Above 10,000
4. What type of occupation does the consumer belonging? Farmer Private employee Government employee Student Business Page-
TVS MOTOR COMPANY 5.Mostly on what type of purpose respondent use vehicles? Personal use Official use
6.What type of purchase mode of the bike does respondent prefer? Reddy cash Bank loan Private loan
7.What type of opinion does respondent see on price? Highly satisfied Satisfied Neutrally satisfied Not satisfied Highly not satisfied
8.How customer preferences before purchasing the bike? BRAND NAME PRICE Performance Mileage After sale service 9.What education qualification of respondent belonging? Illiterate School level College level Others
10.What are the opinions does the respondent have after sale services? Highly satisfied Satisfied Neutrally satisfied Not satisfied Highly not satisfied
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TVS MOTOR COMPANY
11.About convenience does the respondent are satisfying when the delivered as per the allotment times? Highly satisfied Satisfied Neutrally satisfied Not satisfied Highly not satisfied 12. Do you feel the service charges /repair chargeswere reasonable? Excellent Good Bad Very poor
13.
Do you recommend your friends to purchase ?
Yes No
14.
Satisfaction level of quality of service after sale being
provided? Highly satisfied Satisfied Neutrally satisfied Not satisfied Highly not satisfied 15.What is the opinion regarding mileage of the preferred bike? Highly satisfied Satisfied Neutrally satisfied Not satisfied Highly not satisfied Page-
TVS MOTOR COMPANY
16.On what basis do you prefer to buy tvs model? Product variety Brand Pricing Offers 17.What type of service betterment do you expect from tvs motors? Better Service Better settlements & claims Better returns Others 18.Based on your overall experience Would you visit
this service center again? Yes No 19. Did you find service center staff co-operative,
Courteous & polite? Excellent Satisfied Average Not Satisfied Highly not satisfied 20. Why do you prefer for this service? Convenience Economical Security Features Page-
TVS MOTOR COMPANY
BIBLIOGRAPHY Market Research by Tull and Hawkins Marketing Management by Philip Kotler WWW. Tvmotors.com WWW.tvsvictor.com www.googl.com
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