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Background of the company
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among top ten in the world, with annual turnover of more than USD 1.4 billion in 2011-2012, and i flagship company of the, USD 7.29 billion, TVS Group.
The business ranges across automobile component manufacturing, components distribution, manufacturing of powered two-wheelers, computer peripherals, financial services, contract manufacturing services and software development. TVS Motor Company Ltd (TVS Motor), member of o f the TVS group, is the largest compan the group in terms of size and turnover. The TVS group has today emerged as India's leading player in the automobile and automotive components industries. The group has 30 companies employing a work force of around 40,000 people. TVS Motor Company is the largest among the group companies in terms of size and turnover. Today, TVS Motor Company has, o 4 manufacturing plants (Hosur in Tamilnadu, Mysore M ysore in Karnataka, Nalagarh in Himachal Pradesh – India India and Karawang - Indonesia)
16% market share in the two-wheeler industry in India Product offerings in all segments of the two-wheeler industry in India Product offerings for the three-wheeler industry in India More than 15 million customers Products exported to more than 50 countries worldwide Sign up to vote on this title
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Resilience, can-do attitude, indomitable spirit to continuously better industry norms, doing business with a human touch and putting customers at the forefront are some of the salient
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pillars of TQM (Total Quality Management)-Management Commitment, Customer focus, Quality Costs, Quality Systems and Continuous Improvement.
TVS Motor Company has international presence in more than 50 countries in Asian, African and Latin American Continents and will enter more international markets in due course. In India, the company functions through a strong network of sales, service, authorised service centers and other certified service points
1(a)
PORTER’S 5 FORCES ANALYSIS
Porter’s five forces Model of Competition are as follows:
Rivalry among competing sellers Potential new entrants Substitute products You're Reading a Preview Competitive pressures from supplier - seller relations: Bargaining power full access with a free trial. Competitive pressures from Unlock seller – buyer relations: Bargaining power. Download With Free Trial
Rivalry: The key players in two-wheeler industries are Hero Honda motor ltd. (HHML), Ba Auto ltd and TVS motor Company ltd. The other players are Kinetic, Lml, Yamaha, Majesti auto ltd, Royal Enfield ltd and Honda motorcycle & scooter India. Two-wheelers domestic market growth rate for 2008-09 is 76.49% which is very high when compared to that of thre Sign up to vote on used this title wheelers, Passenger and commercial vehicles. The standardized product in manufactur useful in India fo Useful Not of two-wheelers is steel, aluminum and rubber, because there are many industries manufacturing those standardized product the production is going smooth. Sales of twowheelers are very high when compared to that of three wheelers, Passenger and commercial
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change the model on going basis to show differentiation among their competitors because of there is more learning and experience in this field. Each company in industry not only make differentiation in their product strategy but also makes differentiation in the promotional stra to create” brand preference and loyalty”. Because of low cost production, this industry enjoy good growth rate and profitability.
Substitute Product: Substitute products for two-wheeler industries are bus transportation, A transportation and even low-end cars, but people using two-wheelers can only use the servic buses and auto as a substitute product. Sometimes low-end car is a substitute product for the people using high-end motor cycles. Because nowadays there is lot of segment in buses in u areas and the private companies also influenced very much, buses are available from norma buses to hi-tech ac buses which is threat to two-wheeler industry. Since only two people can travel in a bike most of them uses auto when they go out with their family and if they are affordable to buy car will use car instead of auto. Since bus service has increased when compared to five years back people who are aged above 45 years uses buses because of thei health condition. These are the substitute product available to two-wheelers.
Supplier – Seller Relations: Since their selling units are very high in two-wheeler industry because of many competitors supplier are very high. Since they change their models on goin You're Reading a Preview basis they create good relationship between their suppliers. Some of the components in twowheeler industry are very common for all the two-wheeler industries like steel, aluminum, ty Unlock full access with a free trial. and tubes, these material are available in abundant. This makes them to drive a smooth production of their finished products. Download With Free Trial
Seller – Buyer Relations: Buyer has added advantage than seller because there are five to s big popular brands of two-wheelers are available in India, so that they can switch brand from another. Since full information is available to the buyers about their product details and their prices buyers are fully aware of seller costs and products. Buyers are very consciousin spen Sign up to vote on this title their money to purchase two-wheeler, because it attracts most of the middle-income group’s Useful Not useful seller cannot price their product very high. Nowadays people go to unique brand because of good service they provide after purchase. Because service centers and spare parts shop avail
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TVS Jupiter, the newly launched scooter bagged seven awards acclaiming its superiority competitive products.
New product launches and initiatives in the year included the following: TVS Sport, Phoenix 125, TVS Apache, TVS Jupiter The Company's two wheeler exports increased by 14% in 2013-14 due to demand expan better product mix and improvement in distribution network in some major export markets.
TVS Motor company said in its Annual General Meeting held recently that it plans to re third position in the country's two wheeler market. This would be done through new lau like scooter "Zest" and upgraded versions of its motorcycle models like Apache and Victor i current fiscal.
The company is also looking for exporting its products in emerging markets like Africa, S America and Indonesia. TVS Motors declared that they are expecting that the Indon subsidiary of the company would turn cash positive this year. In the current fiscal, TVS m have grown by ~35% in its scooter and motorcycle sales. You're Reading a Preview Unlock full access with a free trial.
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2. PRODUCT MIX TVS Motor Company’s customer inspired engineering approach, has e nabled it to introduce a wide product range that caters to all industry segments with TVS Sport and StaR City in the economy segment, TVS Phoenix 125 in the executive segment and TVS Apache RTR in the performance segment. The company also manufactures TVS Max4R, a product dedicated to rural commuters. The scooter segment of the company, comprises of TVS Scooty Pep+, Scooty Streak, TVS WEGO and TVS Jupiter, while XL Super and Heavy Duty comprise the mopeds segment. The company’s three-wheeler TVS King is India’s first 200 cc auto rickshaw with electric start and elegant styling, available in Petrol, LPG and CNG versions. The company recently launched the diesel version of TVS King.
Marketing mix of TVS Motors You're Reading a Preview
TVS Motors is the third largest automobile manufacturer in India next to Hero Moto Corp a Unlock full access with a free trial. Bajaj auto. TVS motors is belongs to TVS group which is $ 2.2 billion. It is the first compan produce indigenous moped and enter into 100 cc two wheeler markets with collaboration of Download With Free Trial Suzuki. The 19 year old relation with Suzuki was to engage in technology transfer and desig suiting to Indian market. In 2001, they had a strain in relationship in continuing the joint ven which led to a separation.
Product Sign up to vote on this title TVS motors broad product categories include Domestic range, Three wheelers, Interna Useful Not useful range.TVS motors is the only two wheeler automobile which has its penetration all cons segments. They have products like Apache ATR which caters to sports segment, TVS supe
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Place TVS motors have around 2000 country wide main dealer show rooms and service sta attached to it. Manufacturing plants of TVS are located at Hosur, Mysore, Nalagarh Karawang in Indonesia. There are also sub dealers who are engaged in selling multiple bran their show rooms with proper agreements.
Promotions The promotional strategies involve placing brand ambassadors for each product specif geographic division (North India and South India).ViratKohli ,Dhoni for North India, A Surya and Trisha for south India. The promotional activities include dirt bike rally, MRF cross championship rally promotional events in Malls etc.TVS motors majorly concentrate rural markets. They also observed that volume wise the 100 cc generates a lot of volumes, seen in terms of profitability it did not add
3. PLC And Related Strategies You're Reading a Preview
FUNCTIONAL LEVEL STRATEGIES Unlock full access with a free trial. 3.1.1 Star and Apache - Key volume drivers
Download With Free Trial "Much of the volume growth is being contributed by the Star and Apache along with a fillip the Victor variants. For the period April - October 06, the company recorded 937,405 un two-wheelers compared to 770,841 units recorded in the previous year, at a growth of 22% motorcycles during this period clocked 584,155 units at a growth rate of 30%. TVS Star b crossed the 1 million sales mark since its launch and with theuplaunch of this the title electric start va Sign to vote on the demand for the vehicle has grown further in the coming months. Not usefulcontinues to Useful Apache demand and has captured sizeable share in the premium segment of the motorcycle market." 3.1.2. Brand Building - Focus to sustain
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TVS Motors, the country's third largest two-wheeler manufacturer, launched seven product first-of-its-kind rollout in the Indian automobile industry.
The seven products include a completely new 125 cc motorcycle FLAME, an all-new 110 c City, an Apache variant with fuel injection technology and the electric variant of a Scooty. The other three products were the petrol, CNG and LPG version of a three-wheeler pass vehicle that will compete with the Baja j group, the only player in that segment. “This is the step to make the announcement of TVS as a young Indian multinational company. TVS done significant amount of hard work in the last few years and now forthcoming years will the emergence of new TVS," said Venu Srinivasan, chairman and managing director of Motors. He added that the simultaneous rollouts are a tribute to the engineering skill o research and development wing of TVS, making it the first two-wheeler company to multiple rollouts in a single day. “Each new rollout signals avowed intent on the part of TV regain market share and momentum within the industry. The new offerings are target different segments of the two-and three-wheeler customers with emphasis on sup technology, styling and engine capabilities," said Srinivasan.
In its bid to make more environment-friendly vehicle, TVS also announced the launch of its CCVTi (controlled combustion variable intelligent) You'retiming Reading a Previewengine, which will be integrat the newly launched 125cc FLAME. "The CCVTi engine not only reduces the carbon dioxid Unlock full access with a free trial. also cuts down carbon monoxide production by 70 per cent. The Indian auto industry h make its best effort to make a green revolution," said Srinivasan. Download With Free Trial
"The auto industry has to make its best effort to make a green revolution by developin technology of the future," said Srinivasan. The TVS chief added the company has plans "hybrid vehicle" but it would take a long time as the cost is significantly high and the mark niche. Sign up to vote on this title
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TVS Motor has set the stage for entry into the three - wheeler market with the setting up of a plant at Nanjangud, near Mysore in Karnataka. We understand that the company wou
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The continued improvement in quality of its products has resulted in the company win several quality awards as well as bringing in more value for its customers. TVS was the Indian company to win Deming Quality Award. Company's adoption of Total Qu management has made this possible. Company has adopted policy of employee involveme the best possible manner. Large number of quality circles has been formed. Equal attentio been given to both process and end product. Every employee ranging from manager to has a say as to how the quality can be improved. TVS has always focussed on bus reengineering. Philosophies like JIT have enabled TVS to manufacture the product in the efficient manner. This is one of the strategic advantages that TVS enjoys over its competit the market.
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3.1.6. Increasing nationwide network and reach
TVS Motor Company is aggressively increasing its national reach of its sales and se footprint through increased national network for customer access. Currently the products o company can be purchased and serviced from over 4000 points. 3.1.7. Creating goodwill in the market - Serving the society
You're Reading a Preview This extended arm of the company believes in social responsibility and has involved its Unlock full access with a free trial. several community development initiatives that have significantly improved the standa living of the people in 51 adopted villages across the country. The CSR activities of TVS f Download With Free Trial on following fronts of the society: Economic development - The program enables people below the poverty line in these ad villages to earn their livelihood by involving them in activities that generate income.
Dental Health - Health is one of the main focus areas of the Srinivasan Services Trust. Sign up to vote on this title camps; eye camps, health check-up and nutrition programs are conducted. The initiative Useful Not useful focuses on primary health, maternal health, child-care and leprosy eradication. Infrastructure Development - The Company is actively involved in the community develop
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Srinivasan Services Trust has successfully achieved 98% primary school enrolment in adopted villages.
OPERATIONAL STRATEGY
3.2.1 Inventory management
TVS Motors has adopted the JIT technique. Quality and productivity improvement targe plants were achieved through the lean manufacturing systems and JIT projects. Signi improvements were achieved in productivity, quality and cost through application of Productive Maintenance (TPM). Lean and TPM were two key initiatives undertaken unde TQM umbrella for rapid improvements in quality, productivity and cost. The initiatives buying and global sourcing resulted in substantial cost savings. 3.2.2 Quality management
You're Reading a Preview Unlock full access with a free trial.
Total Quality Management (TQM): The Company has been using the philosophies of TQ WithBased Free Trial the cornerstone of its managementDownload since 1987. on the "TVS Way" manual creat 2010-11, diagnosis was conducted to refine the understanding and application of diff processes in 2011-12. Focus on application of statistical tools in problem solving and imp rigor in analysis, helped in completion of continuous improvement projects which yielded results. These projects have also won awards both in national and state level competitions Signof upemployees to vote on this Company has continued to benefit from 100% participation intitle TQM activitie Useful Not useful the sixth year in succession.
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facilities for engine testing, Noise, Vibration and Harshness (NVH) measurements and testing. At present, nearly 600 engineers are working on development of new products a other advanced areas of technology. The Company works with leading technological res laboratories and institutions. The Company is also working on development of fuel-effi technologies and CO2 reduction technologies to remain ahead of needs of consumers environment regulations.
R&D has developed and launched 3-wheelers with alternate fuels like LPG and CNG. In first motorcycle with auto clutch technology, a motorcycle which runs on ethanol blended for Brazilian market, a two wheeler with music system for ASEAN market are the innovatio the current year. R&D has developed and demonstrated a motorcycle with Anti-Lock system technology, a scooter and a 3-wheeler with hybrid technology. R&D has also ensure during 2010-11 all products will meet new emission norms. R&D team has so far published 58 technical papers in national and international conference 3.2.2. Changing technology when needed
After the controversial legal duel with Bajaj Auto on ignition technology, TVS Motors laun its 125cc motorcycle 'Flame' with You're a new Reading and modified engine. It incorporated a singlea Preview ignition engine based on controlled combustion variable timing intelligent (CC-VTi) techno Unlock full access with a free trial.
The engine has been developed and patented by Austria-based AVL and has been licens Download With Free Trial TVS in India. AVL is the world leader in internal combustion engine technology and dev power train systems. It is a leading provider of technology to the global engine and autom industry.
it has The 125cc segment has blurred the line between the 100cc and 125cc segments and Sign up to vote on this title reckoned as the new entry level of the bike riders, considering the element of youth and Useful Not useful attached to it. TVS Motors, considering this approach and segment and its increasing acceptance, has pitched 'Flame' against the current rage, 'Bajaj Exceed'.
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TVS Motor Company Ltd has ventured into commercial vehicle segment with launching King 200cc three-wheeler. It was also said that the company would launch a gearless scoo segment that is logging growth even when the motorcycles are registering slide in sales. Apart from the domestic market, TVS Motor will also export its TVS King to countries lik Lanka, Bangladesh, Latin America, Nigeria and others.
TVS motors, the Deming medal-winning company, which has a turnover of Rs.39.28 b ($969 million), has invested around Rs.1.2 billion in developing its two-stroke three-whee three versions - petrol, LPG and CNG.
"There is lot of commonality of components between our three-wheeler and two-wh engines. There will be around five-seven percent cost savings due to common parts," Sriniv said.
You're Reading a Preview
4. PRICING AND PROMOTIONAL STRATEGY Unlock full access with a free trial.
Download With Free Trial exist for a long period of tim The motorcycle industry is such that the uniqueness couldn't the technology is also imitable. So, the only strategy for a company having a competitive of broad target and cost as a competitive advantage ought to have cost leadership as its pri strategy. In order to capture the market share and to have the economy of scale and scope they need to vote on thisatitle have a broad target as their competitive scope. Even if Sign theyuptry to have differentiation useful Useful price Not would be imitable. So they finally zeroed in for the integrated leadership/differenti strategy. So they had technologically advanced products, greater than 100 cc, that too at a
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