Final Marketing TVS

Marketing Strategies of TVS Motors 1071913907

TABLE OF CONTENTS

Executive Summary

Theoretical Framework

Objective of the Study

Limitation of the Study

Company Profile

Milestones of the Company

The Major Products

Research Methodology

Group Companies

Company at Present and in Future

Marketing Strategies adopted by TVS

Conclusion

Bibliography

Gitarattan International Business School - 1 -


EXECUTIVE SUMMARY

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

formed a civilization he felt the need for “Better Transportation.” Today on the threshold

of exploring the universe he feels the need for “Best Transportation.”

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

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

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

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

The topic of the project is “Marketing Strategies adopted by automobile industry taking

TVS Motors for comparison.” TVS Motor Company is one of the leading bike

manufacturers in India. For the study, secondary data is collected from business

newspaper, magazines, company brochures, journals and the Internet. The major

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

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

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

TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in

India. This report incorporates sincere efforts to submit the best possible dossier on the

topic assigned because no study can be perfect. There are bound to be limitations that I

faced and within which I had to work.



THEOROTICAL FRAMEWORK

MARKET

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

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

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

and priced. There are two roles in markets, buyers and sellers. The definition implies that

at least three actors are needed for a market to exist; at least one actor, on the one side of

the market, who is aware of at least two actors on the other side whose offers can be

evaluated in relation to each other. A market allows buyers and sellers to discover

information and carry out a voluntary exchange of goods or services. This is commonly

done through trade. These trades may be handled a variety of ways, but in small market

environments, buyers and sellers typically deal in currency, and goods. In everyday

usage, the word "market" may also refer to the location where goods are traded, or in

other words, the marketplace.

MARKET STRATEGY

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

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

competitive advantage.

Types of strategies

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

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

of the most common categorizing schemes is presented below:

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

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

of market dominance strategies:


http://en.wikipedia.org/wiki/Market_dominance

http://en.wikipedia.org/wiki/Location_(geography)

http://en.wikipedia.org/wiki/Currency

http://en.wikipedia.org/wiki/Trade

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Goods

http://en.wikipedia.org/wiki/Information

http://en.wikipedia.org/wiki/Seller

http://en.wikipedia.org/wiki/Buyer

http://en.wikipedia.org/wiki/Price

http://en.wikipedia.org/wiki/Ownership

http://en.wikipedia.org/wiki/Economics


o Leader

o Challenger

o Follower

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

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

strength refers to the firm’s sustainable competitive advantage.

o Cost leadership

o Product differentiation

o Market segmentation

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

development and business model innovation. It asks whether the company is on

the cutting edge of technology and business innovation. There are three types:

o Pioneers

o Close followers

o Late followers

Growth strategies - In this scheme we ask the question, “How should the firm

grow?”. There are a number of different ways of answering that question, but the

most common gives four answers:

o Horizontal integration

o Vertical integration

o Diversification

o Intensification

A more detailed scheme uses the categories:

Prospector

Analyzer

Defender

Reactor

Marketing warfare strategies - This scheme draws parallels between marketing

strategies and military strategies


http://en.wikipedia.org/wiki/Marketing_warfare_strategies

http://en.wikipedia.org/wiki/Porter_generic_strategies


OBJECTIVE OF THE STUDY

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

respondents in motorbikes of different brands.

2. To study the future prospects of TVS Motorbikes

3. To provide a fair picture of technology used by TVS Motors

4. To study the sales trend of TVS Motors

5. To analyze the quality of after sales services being provided by TVS Motors



LIMITATION OF THE STUDY

1. Time Constraint – As the time was less so only the secondary data could be

collected for the study

2. Personal bias – Since the study required the comprehensive analysis, so there

would be chances of personal bias.



COMPANY PROFILETVS MOTOR COMPANY (“inspiration in motion ")

COMPANY FLASHBACK

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

The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of

Chennai (formerly Madras).

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

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

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

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

worldwide. With steady growth, expansion and diversification, it commands a strong

presence in the manufacturing of two-wheelers, auto components and computer

peripherals. They also have vibrant businesses in the distribution of heavy commercial

vehicles (HCV) passenger cars, finance and insurance.

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

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

technical collaboration with Suzuki Motor Corporation of Japan which helped the

fledgling joint venture gain from the expertise of a global two-wheeler giant like Suzuki.

In 2000, the TVS group and Suzuki Motor Corporation parted ways from their joint

venture with the former buying out the 25.97 per cent stake of the Japanese company for

Rs 9 crore.

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

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

is the only automotive manufacturer in India to get the prestigious Deming Prize. One of

its subsidiaries Sundaram Clayton was the first company in India to receive the Deming


http://en.wikipedia.org/wiki/Deming


followed by Sundaram Brake Linings also getting the Deming Prize. This prize is "given

to organizations or divisions of organizations that have achieved distinctive performance

improvement through the application of TQM in a designated year."Sundaram Clayton

went on to be awarded the Japan Quality Medal.


http://en.wikipedia.org/w/index.php?title=Japan_Quality_Medal&action=edit&redlink=1


MILESTONES OF THE COMPANY

1980 India's first 2 seated 50cc Moped TVS 50, launched in Aug.

1984 First Indian Company to introduce 100cc Indo-Japanese

motorcycles in Sept.

1994 Launched first indigenous Scooterette (sub-100 cc variomatic

scooters), TVS Scooty in June.

1996 Introduced first catalytic converter enabled motorcycle, the

110cc Shogun in Dec.

1997 Launched India's first 5-speed motorcycle, the Shaolin in Oct.

2000 Launched TVS Fiero, India's first 150 cc, 4 stroke motorcycle

in April.

2001 Launched TVS Victor, 4-stroke 110 cc motorcycle, in August,

India's first fully indigenously designed and manufactured

motorcycle.

2004 Launched TVS Centra in January, a world-class 4-stroke 100

cc motorcycle with the revolutionary VT-i Engines for best-

in-class mileage.

Launched TVS Star in Sept, a 100 cc motorcycle which is

ideal for rough terrain.



THE MAJOR PRODUCTS

MOTORCYCLES

TVS Star Sport

TVS Fiero F2

TVS Centra

TVS Victor (110 cc)

TVS Victor GLX (125 cc)

TVS Victor EDGE (125 cc)

TVS Flame (125 cc,ccvti technology)

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

TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection)

SCOOTERS

Spectra Dx (150 cc)

Spectra Ax (150 cc)

SCOOTERETTES

TVS Scooty ES (60 cc)

TVS Scooty KS (60 cc)

TVS Scooty Pep (75 cc)

TVS Scooty Pep + (90 cc)

TVS Teenz


http://en.wikipedia.org/w/index.php?title=TVS_Apache_RTR_160&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=TVS_Apache&action=edit&redlink=1


MOPEDS

TVS 50 XL (50 cc)

TVS XL (60 cc)

TVS XL Super (60 cc)

TVS Champ (60 cc)

TVS Super Champ (60 cc)



RESEARCH METHODOLOGY

Research methods may be understood as all those methods/techniques that are used for

the conduction of research. Research methods or techniques thus refer to the methods the

researcher use in performing the research operations. In other words, all those methods

which are used by the researcher during the course of studying his research problems are

termed as research methods since the object of research, particularly the applied research,

is to arrive at a solution for a given problem, the available data and the unknown aspects

of the problem have to be related to each other to make a solution possible. Keeping, this

view, research methods can be put into the following three groups:

In the first group, we include those methods which are concerned with the

collection of data. These methods will be used where the data already

available are not sufficient to arrive at the required solution.

The second group consists of those statistical techniques which are used

for establishing relationships between the data and the unknown.

The third group consists of those methods, which are used to evaluate the

accuracy of the results obtained.

Research methods falling in the above stated last two groups are generally taken as

analytical tools of research.

Research methodology is a way to systematically solve the research problem. It may be

understood as the science of studying how research is done scientifically.

Because of the time constraint only the secondary research is done in studying the market

strategies of the company.



GROUP COMPANIES

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

presence in various fields – two wheelers, automotive components, automotive spares,

computer peripherals and finance.

Lakshmi Auto Component Ltd.

Lucas Indian Service Ltd.

Axles India Ltd.

Brakes India Ltd.

Harita Grammer Ltd.

India Motor Parts And Accessories Ltd.

Indian Nippon Electricals Ltd.

Lucas TVS Ltd.

Madras Auto Service

Southern Roadways Ltd.

Sundaram Brake Linings Ltd.

Sundaram Fastners Ltd.

Sundaram Finance Ltd.

Sundaram Industries Ltd.

Sundaram Motors

Sundaram Clayton Ltd.

TV Sundaram Iyengar & Sons Ltd.



COMPANY AT PRESENT AND IN FUTURE

1. Successfully launched the Victor and Fiero F2 models after parting ways with

Suzuki

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

2. Recently launched the StaR Sport and 125cc TVS Victor GLX and four stroke

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

3. Plans major foray into three wheeler and quadricycles market through fresh

investment of Rs 500 crore

4. Actively looking to set up manufacturing unit in Indonesia and Vietnam

5. Strong focus on R&D and product development



VICTOR THE SAVIOUR

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

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

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

technology

Two New Launches could out TVS on a high Growth Trajectory

TVS CENTRA

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

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

month.

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

trajectory of the company.

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

MOTORCYCLE

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

the launch of a new motocycle, “Star Sport.” Star Sport is a stylish, compact and

affordable 100cc motorcycle, aimed at discerning urban motorcycle customers who are

on the look out for sleek and compact style. The Bike has been built to deliver punchy

four stroke performance with excellent mileage and effortless maneuverability that will

have customers tackle busy city traffic with absolute ease.



THREE WHEELER PROJECT – ENTERING A NEW MARKET

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

of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the company

would be targeting the sub – one tonne passenger and goods carriers segment of the

market. With an investment of about Rs. 50 crore in phase I, it will cater to both

passenger and cargo segments. The total investment for the three – wheeler and four –

wheeler quadricycle project are expected to be in the range of Rs 500 crore in the next 2

to 3 years. It plans to go with the petrol version of three wheelers and expects higher

demand to come from B class towns. The company expects higher margin and low

competition in three – wheeler business as compared to its two – wheeler business. Three

– wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY

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

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

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

THREE – WHEELER MARKET SCENARIO

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

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

tonne

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

exceeding 1.5 tonne

The three – wheeler goods carrier segments are:

Maximum mass not exceeding one tonne

Others

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

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

players in the segment are Atul Auto and Piaggio Group, Italy.



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

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

factors:

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

goods carrier, like trucks be kept out for logistic purpose

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

companies such as Mahindra & Mahindra and Piaggio Vehicles Private Ltd.

QUADRICYCLE – A NEW INTRODUCTION IN THE INDIAN MARKET

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

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

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

prototypes.

PLANS SETTING UP MANUFACTURING UNITS IN INDONESIA/VIETNAM

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

has made top level visits to Indonesia and Vietnam. Indonesia is the third largest two

wheeler market in the world with an estimated size this year of 2 million units. Presently,

in Indonesia there is one motorcycle for every 15 people, in Vietnam one for every 7

people. Further, in Indonesia 40 million households, representing 86% of the total not

having motorcycle.

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

Motors

TVS Motor would merge engine component division of Lakshmi Auto Component Ltd

(LAC) and investments and other assets with itself and the dwap ratio has been fixed at

once phase of TVS Motor



DATA ANALYSIS AND INTERPRETATION

MARKET STRATAGIES FOLLOWED BY TVS

1 .Star and Apache - key volume drivers

“Much of the volume growth is being contributed by the Star and Apache along with a

fillip from the Victor variants. For the period April - October 06, the company recorded

9,37,405 units of two wheelers compared to 7,70,841 units recorded in the previous year,

at a growth of 22%. The motorcycles during this period clocked 5,84,155 units at a

growth rate of 30%. TVS Star brand crossed the 1 million sales mark since its launch and

with the recent launch of the electric start variant the demand for the vehicle is expected

to grow further in the coming months. Apache continues to be in demand and has

captured sizeable share in the premium segment of the motorcycle market.”

2, Brand Building – focus to sustain

“The company has been spending whole-heartedly in creating its key model brands. The

company plans to capitalise on the sizable success achieved by top brands in respective

segments. The Star, Victor and Apache in respective segments have done well and all

future efforts would be directed towards keeping the brand image live and fresh by

introducing newer variants of the existing successful bikes.”

3. Trying to capture the Imagination of people

TVS Motors launches seven products in one go

TVS Motors, the country's third largest two-wheeler manufacturer, launched seven

products here on Thursday in a first-of-its-kind rollout in the Indian automobile industry.


http://x-trememachine.blogspot.com/2007/09/tvs-motors-launches-seven-products-in.html


Apache RTR 160 EFI

The seven products include a completely new 125 cc motorcycle FLAME, an all new 110

cc StaR City, an Apache variant with fuel injection technology and the electric variant of

a Scooty.

TVS Flame (125cc)

The other three products were the petrol, CNG and LPG version of a three-wheeler

passenger vehicle that will compete with the Bajaj group, the only player in that segment.

"This is the first step to make the announcement of TVS as a young Indian multinational

company. We have done significant amount of hard work in the last three years and now

2007 will mark the emergence of new TVS," said Venu Srinivasan, chairman and

managing director of TVS Motors.

He added that the simultaneous rollouts are a tribute to the engineering skill of the

research and development wing of TVS, making it the first two-wheeler company to

make multiple rollouts in a single day.


http://www.rockingroadies.com/blog/wp-content/uploads/ApacheRTR160EFI.jpg

http://www.rockingroadies.com/blog/wp-content/uploads/TVS_Flame.jpg


He said the production of all newly launched vehicles will start in October and they will

hit the road by November.

"Each new rollout signals avowed intent on the part of TVS to regain market share and

momentum within the industry. The new offerings are targeted at different segments of

the two-and three-wheeler customers with emphasis on superior technology, styling and

engine capabilities," said Srinivasan.

In its bid to make more environment-friendly vehicle, TVS also announced the launch of

its new CCVTi (controlled combustion variable timing intelligent) engine, which will be

integrated in the newly launched 125cc FLAME.

"The CCVTi engine not only reduces the carbon dioxide but also cuts down carbon

monoxide production by 70 per cent. The Indian auto industry has to make its best effort

to make a green revolution," said Srinivasan.

TVS starCity (110cc)

The new StaR City comes in a 110 cc platform while the Apache RTR is mated with

electronic fuel injection and has a greener technology.

Out the seven models launched, three were versions of a three-wheeler passenger vehicle

- in petrol, CNG and liquefied petroleum gas (LPG) variants.

"The CNG is just an alternate source of fuel for us. And it can be on any platform -

maybe a motorcycle or a scooter. But it will be a motorcycle," said Srinivasan.


http://www.rockingroadies.com/blog/wp-content/uploads/starCity_110.jpg


The other four launches were a completely new 125 cc motorcycle FLAME, an all new

110 cc StaR City, an Apache variant with fuel injection technology and the electric

variant of Scooty.

TVS scooty Teenz Electric

"The auto industry has to make its best effort to make a green revolution by developing

the technology of the future," said Srinivasan.

The TVS chief added the company has plans for a "hybrid vehicle" but it would take a

long time as the cost is significantly high and the market is niche.

4. Customer Satisfaction And Quality

The continued improvement in quality of its products has resulted in the company

winning several quality awards as well as bringing in more value for its

customers. Last year, TVS Apache, which was awarded 'Bike of the Year 2006'

by several leading auto magazines, was chosen as the number 1 motorcycle

brand in its class, in an all India customer satisfaction survey conducted by TNS

Automotive. Recently, TVS Apache won the 'NDTV Car & Bike – AAA viewers

choice Bike of the Year 2007' award, thus reinforcing customer's preference.

During the year, the company offered a unique 5–year warranty scheme for its

discerning TVS StaR customers.


http://www.rockingroadies.com/blog/wp-content/uploads/scootyTeenzElectric.jpg


5. Research And Development

Several Advanced Engineering and technological researches are constantly

undertaken by the company to ensure world-class products are offered to its

customers. TVS Motor works closely with global Design and Research houses to

give the Indian Consumer the very best in terms of technology, style and fuel

efficiency. The company has applied for over 150 patents and its R&D team has

published 33 technical papers in national and international conferences

6. Increasing Nationwide Network And Reach

TVS Motor Company is aggressively increasing its national reach of its sales and

service footprint through increased national network for customer access.

Currently the products of the company can be purchased and serviced from over

3000 points.

7. Creating goodwill in the market- Serving the society

This extended arm of the company believes in social responsibility and has involved

itself in several community development initiatives that have significantly improved the

standard of living of the people in 51 adopted villages across the country.

Economic development

The program enables people below the poverty line in these adopted villages to earn their

livelihood by involving them in activities that generate income..

Health

Health is one of the main focus areas of the Srinivasan Services Trust. Dental care

camps; eye camps, health check-up and nutrition programs are conducted. The initiative



also focuses on primary health, maternal health, child-care and leprosy eradication.

Infrastructure Development

The company is actively involved in the community development of the villages by

providing infrastructure facilities such as housing, sanitation, roads, drains, bus shelters,

medical centre and natural resources management.

Rebuilding Quake Hit Villages

Supported by Rural Agro Research & Development Society and Kutch Nav Nirman

Abhiyan, the Company has rebuilt “Goyersama” a village in the District of Gujarat,

which was hit by an earthquake of unprecedented scale and magnitude on 26th January

2001.

Education and Literacy

In addition to providing infrastructure facilities like new buildings for school, the

Company helps establish computer education programs for school children. The

Srinivasan Services Trust has successfully achieved 98% primary school enrollment in

the adopted villages

8. Changing Technology when needed

After the controversial legal duel with Bajaj Auto on ignition technology, the Chennai-

based two-wheeler manufacturer TVS Motors,launched its 125cc motorcycle 'Flame' with

a new and modified engine. The company incorporated a single-spark ignition engine

based on controlled combustion variable timing intelligent (CC-VTi) technology.

The engine has been developed and patented by Austria-based AVL and has been

licensed to TVS in India. AVL is the world leader in internal combustion engine

technology and develops power train systems. It is a leading provider of technology to

the global engine and automotive industry.



The 125cc segment has blurred the line between the 100cc and 125cc segments and it has

been reckoned as the new entry level of the bike riders, considering the element of youth

and style attached to it. TVS Motors, considering this approach and segment and its

increasing wide acceptance, has pitched ‘Flame’ against the current rage, ‘Bajaj Exceed’.

It is the combination of two factors, which would determine the acceptance of Flame.

First, it is the time and then there are the features. ‘Flame’ comes with the already

accepted single-spark ignition. It's launch was to coincide with the ‘Exceed’. However,

due to a legal duel with Bajaj Auto, its launch was delayed. And in this span, the Exceed

has been branded and promoted as a motorcycle having premium features (mileage-

108km and disc breaks). Hence, a lot would depend on the company’s branding strategy

and Flame’s fight with the features present in the Exceed (almost of a 150cc bike).TVS

Motors’s OPM has been hovering around 4-5%.

Due to a slump in the sector, its sales have been dipping, bringing about a sharp decline

in its NPM which decreased in September 2007 from 1.41%, to 0.65 % in the December

2007 quarter. TVS posted a net profit of Rs 5.83 crore for the quarter-ended December

31, 2007 as compared to Rs 11.46 crore in the quarter-ended December 31, 2006.

9. Launch goods carrier, gearless scooter

(IANS) City-based TVS Motor Company Ltd will soon get into commercial vehicle

segment, said a top official here Sunday. Talking to reporters after launching TVS King

200cc three-wheeler, company chairman Venu Srinivasan said: “Next year we will

launch a sub-one-tonne goods carrier. A diesel-powered three-wheeler will also be

launched.”

He also said the company would launch a gearless scooter, a segment that is logging

growth even when the motorcycles are registering slide in sales.

“We are targeting 30 percent market share in eighteen months time. The market size is

around 1.8 million units per year,” said H.S. Goindi, senior vice-president, international

business and three-wheelers, TVS Motors.


http://amazon.com/gp/product/B0006FU3QK?ie=UTF8&tag=thainindiaint-20&link_code=em1&camp=212341&creative=384049&creativeASIN=B0006FU3QK&adid=ad8b98c9-559f-49f5-ad1d-9cc748a55771


According to Srinivasan, the three-wheeler is expected to beef up the top line by Rs.2

billion in the coming year, selling around 30,000 units.

Apart from the domestic market, TVS Motor will also export its TVS King to countries

like Sri Lanka, Bangladesh, Latin America, Nigeria and others.

“The impact on the bottom line is difficult to quantify now,” Srinivasan added.

The Deming medal-winning company, which has a turnover of Rs.39.28 billion ($969

million), has invested around Rs.1.2 billion in developing its two-stroke three-wheeler in

three versions - petrol, LPG and CNG.

“There is lot of commonality of components between our three-wheeler and two-wheeler

engines. There will be around five-seven percent cost savings due to common parts,”

Srinivasan said.

As the sales of three-wheeler is largely dependent on the state government policy of

issuing passenger carrying vehicle permits, Giondi said the company would work with

various state governments to clear any misconceptions about this vehicle segment.

TVS Motor is also wooing the auto rickshaw driver community with slew of incentives.

The company is offering a free personal accident-cum-health insurance for the owner and

his family (self, wife and three children) by paying the first year premium of Rs.264.

The personal accident insurance cover will be for Rs.100,000 and the health insurance

cover will be for Rs.30,000.

Asked about using 200cc engine in TVS King while many others make similar vehicle

with 150cc engines, Goindi said: “The cities are becoming bigger and there are more

flyovers. It is time that three-wheelers are powered by high power engines.”

The on-road price of TVS King ranges between Rs.90,000-Rs.130,000 depending on the

variant.


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http://amazon.com/gp/product/B000EOHBJA?ie=UTF8&tag=thainindiaint-20&link_code=em1&camp=212341&creative=384049&creativeASIN=B000EOHBJA&adid=20d633ad-0dfa-4343-8efc-9b750750b0a1


Asked about the possible impact the small cars could make on the three-wheeler sales,

Srinivasan said: “We don’t foresee any impact on three-wheeler sales owing to the entry

of Tata Nano or other cars.”

Earlier, Tamil Nadu’s Local Administration Minister M.K. Stalin launched TVS King by

handing over the keys to two buyers.

Appreciating TVS Motor for its impressive growth from a Rs.1 billion turnover company

in nineties to its current position, Stalin said the state was progressing well in its

industrialisation.

10.Taking women on a ride

THE automobile industry is in a sudden rush to cater to the transportation needs of the

fairer sex. Vying with one another, the current bunch of scooterette manufacturers and

potential players are trying to roll out products for women across age groups as their

central focus.

The special requirements of two-wheeler riding women; the features that will help ease

their riding experience; and accessories that can be showcased as unique selling

propositions are now driving innovation in designing scooterettes for this burgeoning

class of riders.

Women were always in the radar for manufacturers of these two wheelers, but only they

were not projected as the primary focus. This was the case with the marketing strategies

that Bajaj and Kinetic had adopted for the earlier versions of the Safire and the Zing

respectively.

The primary targets for these two-wheelers were college-going students, middle-income

households and men and women alike. Now, with the category showing signs of growing

faster than the other two-wheeler segments and with the growth coming from the surge in


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purchases by women, manufacturers such as Bajaj, TVS Motor and Kinetic are keen on

rolling out the red carpet to woo the divas.

And, so, after revamping its scooterette, Bajaj has now relaunched the Safire as the new

Wave and also come out with the new `when-you-are-happy-and-you-know-it'

advertising campaign to attract women buyers. The new Wave is easier to ride, more

powerful and, yet, more fuel-efficient and has attributes that are women-friendly.

This partly redesigned scooterette that is also more trendy and good looking irons out

some of the nit-picky engine and transmission problems that had bugged the erstwhile

Safire.

Not to be left behind, both Kinetic and TVS have now launched new, snazzier variants of

their scooterettes and will try to hit back at Bajaj's attempt at a comeback into the

premium scooterette segment.

Small Kinetic

Of the two, though, Kinetic's Kine (a.k.a. Zing 80) only features cosmetic enhancements

that give the scooterette new looks and a marginally better finish than the Zing 80, on



which it is based. It continues to feature the same 71.5cc, two-stroke engine that puts out

a maximum power of 4.2 bhp and a peak torque of 5.7 Nm. The kerb weight of the Kine

is a feather-light 82 kg and fuel tank capacity is four litres.

The additions and special features in the Kine is the new three-tone colour that gives the

scooterette sportier looks and further highlights its design lines, the cola-can holder in the

front, mobile charging point in the under-seat storage area, puncture-resistant tyres and

the new headlamp. Some of these, such as the mobile charging point and can-holder,

were also available in the Zing and these have been retained based on customer feedback,

according to Kinetic.

Kinetic has also used feedback from customers to come up with the new name — `Kine'.

The idea behind the new name being that for many years the good old Kinetic was being

referred to (by users themselves) as `Kine' — a nickname that the vehicle acquired on its

own.

Kinetic's research is also said to have shown that `Kine' as a word in itself has many

characterstics of a popular brand, including instant recall and identification. As this

scooterette is a smaller, lighter package with a lower price tag, Kinetic has decided to

make it into a full-fledged brand of its own.

Peppy plus

Unlike the Kine, which features cosmetic changes, the new TVS Scooty Pep+'s

alterations run deeper. For one, the new Pep+ sports a brand new, more powerful 90cc

four-stroke engine that delivers a peak power of 5 bhp and a peak torque of 5.8 Nm.

The engine feels refined and is said to be peppier compared to its 75-cc predecessor,

which will continue to be available in the Scooty Pep.

Dual tone colours and new racy graphics adorn the new Scooty Pep+'s body panels; a

new stylish dash with an easy-reading speedometer cluster and a fresh new range of body



colours has been added. The new Scooty Pep+ also gets a few neat touches that should

make it more likeable for women riders.

The LED lighting in the under-seat storage area, the cell-phone charger below the

dashboard, the flourescent ignition key slot for better visibility at night and the

innovative, patented centre-stand design with extra leverage that makes parking the

scooterette a breeze, will all be features that will not only be appreciated by women of all

age groups, but also by the men folk, who will invariably also be the users of this

scooterette.

The Bajaj Wave's advertising overtly focuses on women riders, but its other

communication material and the scooterette's actual attributes do not reflect that specific

focus.

Unlike the Bajaj, the TVS Scooty Pep and new Pep+ clearly focus only on the growing

population of women two-wheeler users, though market research has showed that about

35 per cent of the current users are men.

The Scooty Pep's brand ambassador is Preity Zinta and the new ad campaign for the Pep+

will attempt to focus on the improved power and playfulness of the new version. Kinetic,

meanwhile, will continue to position the Kine (like it did for the Zing) as a practical, fuel-

efficient and attractive two-wheeler for the college-going public.

The new TVS Scooty Pep+ has been priced at about Rs 33,000, ex-showroom in

Chennai. The new Kine, on the contrary, will be available for about Rs 5,000 lesser, but

will not be able to offer similar build and finish quality and as many features as the TVS

Scooty Pep+.

Fuel efficiency numbers, however, are unlikely to be much different between the two at

about 50 kmpl (in city conditions), despite the Kine's two-stroke engine.



CONCLUSION

TVS Motor Company is one of the leading bike manufacturers in India. The major

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

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

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

TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in

India.



BIBLIOGRAPHY

WEBSITES

www.google.com

www.tvsmotor.com

MAGAZINES

Autosports

Business Outlook

NEWSPAPER

Times Auto

Economic Times


http://www.tvsmotor.com/

http://www.google.com/

Documents

Final Marketing TVS