sales and promotion of tvs motor company

8/19/2019 sales and promotion of tvs motor company

1/46

A

PROJECT REPORT ON

“SALES AND PROMOTION”

FOR

TVS MOTOR COMPANY PVT LTD

BY

ARJUN R

UNDER THE GUIDANCE OF

PROF. HAMJE

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE

AWARD OF THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

THROUGH

ASM’S INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

CHINCHWAD PUNE - 4!"

1


2/46

2


3/46

DECLARATION

I hereby declare that this project report titled as “A study of sales and promotions” of TVS motors has been prepared as a part of my academics for the partial fulfillment of degree of “master of businessadministration”, by savtribai phule university of pune under guidance of Prof. hemje of AS Institute of business management and research.

To the best of my !no"ledge and belief the matter presented in this report has not been submitted earlier forthe a"ard of any other degree. This report is prepared by me on my o"n efforts.

A#$%& # 'A (#) S*)AT* +

PA-* +

3


4/46

Chapter No! "

INROD#CTION$ E%EC#TI&E '#((AR)

4


5/46

Introdu*tion of mar+etin,-

ar!eting is both the Art as "ell as science. The management process through "hich goods and sericesmoe from concept to the customer. It includes the coordination of four elements called the / P0s of

mar!eting+

i. Identification, Selection and deelopment of a produ*t

ii. )etermination of its pri*e

iii. Selection of a distribution channel to reach the customer0s pla*e and

i. )eelopment and implementation of a promotional strategy.

ar!eting is based on thin!ing about the business in terms of customer needs and satisfaction. ar!eting

defers from selling because 1in the "ords of 2arard business School3s retired professor of mar!eting

Theodore -. eaitt4” Selling concerns itself "ith the tric!s and techni5ues of getting people to e6change

their cashfor your products. It is not concerned "ith the alue that the e6change is all about. And it does not,

as mar!eting inariable does, ie" the entire business process as consisting of tightly integrated effort to

discoer, create, arouse and satisfy customer needs.” In other "ords, mar!eting has less to do "ith getting

customers to pay for your product as it does deeloping a demand for that product and fulfilling the

customer3s needs. %ltimately, it ma!es more sense to thin!ing of "ays to benefit from creating customer

alue in the most effectie "ay, subject to ethical and other constrains that one may hae. ar!eting usually

inoles an e6change bet"een buyers and sellers or bet"een other parties. ar!eting has an impact on the

firm, its suppliers, its customers, and other effected by the firm3s choices. ar!eting management is the

broad scope of the study of mar!eting focusing on the practical application of the techni5ues and mar!eting

actiities of a certain company or business. This business discipline encompasses mar!eting planning and

strategy, orientations, and processes needed in attaining company goals by proiding alue to clients. Since it

has a "ide coerage inoling all factors re5uired to satisfy customers, mar!eting management must be all7

perasie and part of eery employee3s scope of "or!, from the subordinates to those in higher management.

Definition of (ar+etin,-

“ar!eting is the beginning and end of all the business actiities 8 Philip 9otler”

“ar!eting is the deliery of standard of liing to society 8 Paul asur”

5


6/46

De*idin, on the .romotion mi/+

-ompanies face the tas! of distribution the total promotion budget oer the fie promotional tools+

• Adertising

• Sales Promotion

• Public #elations and Publicity

• Sales :orce

• )irect ar!eting.

;hateer method a company adopts for promotion its product it must be from aboe mentioned method.

0hat is 'ales1

Promotion is the final element in the mar!eting mi6. After the nature of product is decided, its price fi6ed

and the methods of distribution decided, the manufactures has to ta!e effectie steps in meeting the

consumers in the mar!ets. In the present consumer oriented mar!ets it is the duty of manufactures to !no"

"hat is re5uired by the consumer. It is also their duty to ma!e the customers !no" "here, "hen ho" and at

"hat prices. The products "ould be aailable.

(eanin, Of .romotion-

The term promotion is the term and include mainly three type of sales actiity+

.P4 sho"

and e6hibition, demonstration and other non7securing selling efforts.

This form of actiity is called ?Sales Promotion3.

6


7/46

E%EC#TI&E '#((AR)

A Summer Internship Project is ital part of eery 'A program. It helps us to hae a real insight into

corporate "orld. An internship also enables us to gear up for the career ahead of us. All the theory that "e

hae learnt in our curriculum is put into practice during internship. I hae done my project on “SA*S A&)P#>>TI>&” "ith reference to TVS ->PA&@ PVT T).

Promotion is the final element in the mar!eting mi6. After the nature of product is decided, its price fi6ed and

the methods of distribution decided, the manufactures has to ta!e effectie steps in meeting the consumers in

mar!ets, In the present consumer oriented mar!ets it is the duty of manufacturers to !no" "hat is re5uired by

the consumer, It is also their duty to ma!e the customer !no" "here, "hen ho" and at "hat prices. The

products "ould be aailable. The study "ould bring out ho" the product is going in a highly competitie

mar!et "ith deferent promotional actiities. The topic includes that to study the sales promotion actiities

used by TVS -ompany PVT T) for increasing the sales of otorcycles. The reason for selecting this topic

is to get learning e6perience of automobile sector.

It contains all important and prominent function, sales promotion including distribution channel in

particular. The study on motorcycle can gie a aluable learning about ho" to analyBe a product success or

failure and according set action plans for its betterment. Also it "ould be a great opportunity for interacting

"ith different !ind of people and get to !no" ho" actually the system runs. It "ould also a big idea for

ta!ing a call to"ards satisfying customer needs, "hich is ultimately the prime objectie of any company and

its employees.

7


8/46

This project "as prepared during "or! of t"o months as Summer Internship Training Program in TVS

-ompany PVT T) on topic “ST%)@ >: SA*S A&) P#>>TI>&” it is the surey for the mar!eting

strategies and promotional actiities of otorcycles.

REA'ON' 2OR 'ELECTIN3 T4E TO.IC

To gain practical !no"ledge along "ith mar!eting theory.

To understand the challenges of the organiBation.

To get the mar!et information.

To became a"are of our strengths and "ea!ness as re5uired for potential manager.

To understand mar!et situation.

8


9/46

Chapter No! 5

IND#'TR) .RO2ILE

9


10/46

5!" IND#'TR) .RO2ILE

Automotive industry-

The automotive industry is a term that coers a "ide range of companies and organiBations inoled in the

design, deelopment, manufacture, mar!eting, and selling of motor ehicles, to"ed ehicles, motorcycles

and mopeds. It is one of the "orldCs most important economic sectors by reenue.

The term automotive industry usually does not include industries dedicated to the maintenance of

automobiles follo"ing deliery to the end7user, such as repair shops and motor fuelfilling stations.

4istory-

The automotie industry began in the


11/46

=FFE, "hen -hina too! the top spot "ith


12/46

(ar+et si6e

The automobile industry produced a total of


13/46

Top .layers in automotive industries in India- 7

"! 4ONDA- 7

5! 4ERO- 7

13


14/46

8!9A:A:- 7

;!T&'- 714


15/46


16/46

5!5CO(.AN) .RO2ILE

Type Public

Traded as BSE: 532343,NSE: TVSMOTO

R

Industry Automotive

PredecessorsSundaam ! "la#ton

$imited Mo%ed &ivi'ion

(ndia Moto "#cle'$imited

16

http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_company


17/46

TVS ! Su)u*i $imited

Founded +-.

Founders Sundaam

Headquarters "/ennai, (ndia

Number oflocations

3 t0o 0/eele and + t/ee

0/eele %lant'

Key people VenuSiniva'an

1"/aiman M&

Products Motoc#cle', 'coote', t/ee!

0/eele ve/icle' and '%ae

%at'

Revenue --35 billion 1S6+2 billion127+4

Profit 254 billion 1S63. million

127+4

Total assets +74. billion1S6+87 million

127+4

Parent Sundaam ! "la#ton $imited

Website 000tv'motoin

CO(.AN) .RO2ILE- 7

T&' (otor Company, the flagship company of the TVS Group, is India3s third largest

T"o7"heeler manufacturer and one among the top ten in the "orld. The TVS Group "as established bac! in


18/46

• / manufacturing plants 12osur in Tamil nadu, ysore in 9arnata!a, &alagarh in 2imachal Pradesh 8

India and 9erra"ang 7 Indonesia4

• rder of )iplomatic

Serice erit3 12eung7In edal4 conferred by the President of the #epublic of 9orea, 2is *6cellency ee

yung7ba! in recognition of his aluable contribution in promoting 9orea7India bilateral relations and the

prestigious honor by the President of Indian "ith the Padma Shri a"ard for his aluable and outstanding

contributions in the field of Trade and Industry. The $#) Tata -orporate, The Star of Asia a"ard by 'usiness

;ee!, The $amshedji TATA ifetime Nuality Achieement A"ard, *merging -orporate Giant 7 Times

2arard 'usiness School Association are some of the other high7profile a"ards besto"ed on him.

The current product portfolio of the company comprise of motorcycles including TVS Star in the economy

segment, TVS Apache #T# inperformance segment. TVS Scooty PepO, TVS Scooty Strea! ma!e up thescooterette segment "hile Super and 2eay )utyform the mopeds segment. The company recently

launched India3s first clutch lessmotorcycle, TVS $ie along "ith an automatic metal bodied scooter TVS

;egoand TVS $upiter thereforeoffering consumers a comprehensie product portfolio.

18


19/46

TVS otor -ompany is reno"ned for its human resource management. *mployees get e6posure to arious

s!illdeelopmental aspects li!e -ross :unctional Teams 1-:T4, Superisory Improement Teams 1SIT4, and

Nuality -ontrol -ircles 1N--4 among arious others. Specific care is ta!en toensure the creation and

maintenance of an incomparable "or!ing enironment "ithemployee "elfare at the focal point.

As part of its ,lobal operations, TVS otor -ompany has international presence in more than HF countries

in Asian, Africanand atin American -ontinents and "ill enter more international mar!ets in due course.

InIndia, the company functions through a strong net"or! of sales, serice, authoriBed sericecenters and

other certified serice points.

19


20/46

Chapter No!;

RE'EARC4 (ET4ODOLO3)$ DATA ANAL)'I'

#esearch is an art of science inestigation through search for fe" facts in any branch of !no"ledge. It is a

moement from !no"n to un!no"n

#esearch al"ays "ith the 5uestion or problem

It is purpose is to find ans"er to 5uestion through the application of scientific method

It is a systematic and intensie study directed to"ards a "or! complete !no"ledge of the subject

studied

20


21/46

As the mar!eting does not address itself the basic or fundamental 5uestion it doesn0t 5ualify as basis research

on the contrary, it tac!les problems, "hich seems to hae immediate commercial potential. In ie" of major

consideration, mar!eting research should be regarded as applied research, "e may also say that mar!eting

research is both types problem soling and problem and oriented.

ar!eting research is a systematic and objectie study of the problems pertains to the mar!eting of goods

and serices. It may be emphasiBed that it is not restricted to any particular area of mar!eting, but is applied

to all the phase and aspects.

(ethods of Data *olle*tion- 7

"@ Data to be *olle*ted-

)ata includes facts and figures, "hich are re5uired to be collected to achiee the objecties of the projecting order to determine the present position and satisfaction of customer of TVS Automobiles.

A! .RI(AR) DATA-

The data is being collected for the first time or to particularly fulfil the objecties or the project is

!no"n as primary data.

The primary data "ere collected through response of consumer "as conducted through the

5uestionnaires prepared for them by face to face interaction.

9! 'ECONDAR) DATA-

This dataare the types of data "hich are already assembled and needs not to collected from outside.

This type of data "ere+

I. -ompany profile

II. Product profile

III. -ompetitors profile

The aforesaid data "ere collected through internet and company0s financial report.

5@ Data *olle*tion method-

:or gien project the primary data, "hich needed to collect for the first time, "here much significant.

This type of information gathered through surey techni5ues, "hich is the most popular and effectie

21


22/46

techni5ue for collection. The surey "as completed "ith use of 5uestionnaires by face to face

interaction.

8@ 'amplin,-

Sample is the small group ta!en under consideration from the total group. This small group represent the

total group in the project the mar!et research, "hich "as as! to be studied in mar!et area but as it "as

possible to approach all the respondents customer of the city, hence a sample "as selected "hich

represent the "hole city. The area selected for the sample is present further in the appendi6. Sample siBe

of customer list "as ta!en from TVS Automobile customer data basic.

;@ Data evaluation-

The data so collected "ere not simply accepted because it contained unnecessary information and oer or under emphasiBed facts. Therefore only reerent data "ere included in the report "hich helps in

achieing the objectie of the project.


23/46

ac! of thin!ing beyond the mar!et

ac! of mar!eting aftermar!et

ac! of adertisement

O..ORT#NITIE'-7

-an launch arious categories of product in Scooty pep.

ots of room in sales improement of =7"heeler

-an capture "hole mar!et as the competitors are lac!ing in lo" price "ith high 5uality for =7"heeler

-an tie7up "ith /7"heeler manufacturing company for >.*. products.

T4REAT'-7

&eglecting small machine shop "ill be beneficial for competitors to oercome our 5uality products

sale. In /7"heeler small the only reason "hy customer "ill purchase our product is series proided to

themQ other"ise big industries "ill through us out of the competition.

Resear*h Instrument-7

:or this purpose Nuestionnaire >bseration has been used astool.

Conta*t (ethod- 7

)irect surey of the employees and 5uestionnaire for the customers.

'amplin, 'i6e- 7 " employees

5 *ustomers

'amplin, Area-7 TVS motor 1P-- Area4

I! Does T&' adopt the sales promotion te*hniBues1

Table No!-7 "

@es+ 7 DH

&o+ 7


24/46

3raph No!- 7 "

Yes; 85%

No; 15%

P#$%O'$( A)'*'+

Interpretation-

According to surey it is found that TVS 1DH4 Adopt Promotion actiity and 1


25/46

P#$%$&'$( T,)-('./,0

Interpretation-

According to surey used Sales and promotion Techni5ues by TVS that 1DF4 respondent used discount

techni5ue 1=F4 used coupons techni5ue 1


26/46

Chapter No!<26


27/46

2LO0 C4ART' $ DIA3RA('

T&' to heelers- 7

27


28/46

"! 0E3O- 7

5! :#.ITER- 7

8! 'COOT) .E. - 7

28


29/46

;! A.AC4E- 7

29


30/46

30


31/46

?! 'TAR CIT) - 7

! 'TAR '.ORT- 7

31


32/46

F! T&' %L 4EA&) D#T)- 7

32


33/46

Comparison beteen :upiter $A*tiva- 7

33


34/46

Comparison beteen T&' 'tar 'port $ 9A:A: Dis*over G" **@- 7

34


35/46

35


36/46

Chapter No!

CONTRI9#TINON TO T4E 4O'T OR3ANI=ATION

36


37/46

O9'ER&ATION

• In the future TVS motor -ompany "ill be the top =7"heeler company in India and one among the top

fie =7"heeler company in Asia.

• In current mar!ets scenario, respondents gie ma6imum no. of "eightage to price the after they

consider mileage and colors respectiely.

• The study sho"s that more no. of respondents hae connected as sources of income from agriculture.

• The study sho"s that H< respondents are already user of TVS motorcycle. So TVS is popular

Automobile -ompany in study region.

LI(ITATION'

37


38/46

This research conducted on a ery small sample siBe, so it might be possible that the information gien bysuch respondents may not match "ith the replay of total customer aailable in the TVS at that time.

• The limitation of the study "as about time.

• It might be possible that the ans"ers gien by the respondents are full of biasness.

• As there are t"o types of respondents so there is difference bet"een the responses to"ards the sales

promotion tools aail by both them "hich become a constraint to"ards the research project.

• The number of respondents coered by me can0t gie appropriate results rather can proide some

ideas.

• Sometimes respondents not interested.

CONCL#'ION38


39/46

The research project "as good e6perience in t"o months. It enables to come the different opinion

of the customer about the TVS motors.TVS motors ta!ing many opinions from the customer they utiliBe

all the opinion in ne" production.-ompany should design ne" and attractie offers as "ell as policies

such as "arranty so as it is helpful in promotion process.In the conte6t of price, 5uality, serice bac! up,maintenance and safety. It "as possible to understand the leel of customer satisfaction factors.Promotion

actiities ery useful to !no" all information about product at TVS.TVS motors price is not ery high

compare to the competitor product so eeryone can buy as per hisLher need.

TVS ta!ing care of his customer or delight the customers "ith its product 5uality.TVS should try

to enhance its post7sale serice as preentie measure for ma6imiBing the satisfaction leel.The

preentie measure maintenance should be monitored on regular basis to maintain the brand image in

mar!et, so that it competes "ith the competitors in the mar!et.ost of the respondents are satisfied "ith

the serices of Saibaba TVS motors.ess labor charge and serice in time and increase in number of

serice station they are three major parameters in demand.The sale of Scooty and ;ego and $upiter are

high as compared other ehicles.

'#33E'TION'

39


40/46

-ustomer0s feedbac! should be ta!en in a better "ay.

>ffers "hich are proided by company to the customers should be same for eeryone.

There should be more emphasis gien by the company for satisfying the customer up to an

ape6 limit by proiding the utility of eery penny of his money.

The company can communicate deelop stronger customer bonding by proiding social

financial benefits.

The company should be fle6ible to bend its rules procedures in the client0s faors.

Should increase the strengths of customer relationship management department by hiring thecomponent employee.

There should be more use of information technology.

To fulfill the needs of the respondents Saibaba TVS should set ne" branches near P--

Area, to reach the ma6imum number customer.

To !no" the problems faced by the customers at the time of post7sale serice should conduct

free chec!up camps and collect the feedbac! of at the time of serice.

40


41/46

Chapter No!F

RE2ERENCE'

9iblio,raphy-7

9oo+s-

Philip 9otler, =FFD, “ar!eting anagement”


42/46

-.#.9othari, =F


43/46

ANNE%#RE

Huestionnaire

C#'TO(ER .ER'ONAL IN2OR(ATION-7

A. &ame+ 7

'. Address+7

-. -ontact no.+7

). Gender+7 ale L :emale

43


44/46

*. Age1in year4+7

ccupation+7

Agriculture 1 4 'usinessman 1 4

Students 1 4 Professional 1 4

>thers 1 4

G. onthly income+7

HFFF 1 4 HFFF7


45/46

/. ;ere you offered a test drie during your isit to our sho"roomR

@es+7

&o+7

H. 2o" do you feel about TVS t"o "heeler ehiclesR

*6cellence+7

Good+7

oderate+7

Satisfactory+7

%nsatisfactory+7

K. According to you "hich promotion actiities is most effectie for TVSR

Advertisement Nespaper 'ellin,

J. ;ould you prefer to follo" promotion actiities used by the competitorsR

@es+7

&o+7

D. ;hat !ind of support serices proide you proide your customersR

Information

Transport

-redit facilities

After7sales serices

Guarantee and others

E. ;hich of the follo"ing promotion actiities should adopted by your companyR

*6hibition

*6change offer

)iscount

Gift ouchers


46/46

Good

Aerage

'ad

Very bad

Documents

sales and promotion of tvs motor company