PREFACE

Someone has rightly said that practical knowledge is far better than classroom

teaching. During this project I fully realized this and I came to know about how

a consumer chooses among a varied range of products available to him.

The subject of my study is market survey of customer buying behavior in bikes

taking TVS for comparison, which has slowly but steadily evolved, from a

beginner to a corporate giant earning laurels and kudos throughout.

The report contains first of all brief introduction about the company. Finally

there comes data presentation and analysis in the end of my report. I also put

forward some of my suggestion hoping that they help TVS Motor Company

move a step forward to being the very best.

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CONTENTS

Chapter 1 :

Company Profile

Introduction of the Project

Scope of Study

Objectives

Chapter 2 : Research Methodology

Sample Size

Sample Location

Research Type

Data Type

Instruments

Chapter 3 : Finding and Discussions

Chapter 4 :

Recommendations

Limitations

2

Summary and Conclusions

References / Bibliography :

Annexure Questionnaires :

3

Indian Two-Wheeler Industry

Automobile is one of the largest industries in global market. Being the leader in

product and process technologies in the manufacturing sector, it has been

recognised as one of the drivers of economic growth. During the last decade,

well-directed efforts have been made to provide a new look to the automobile

policy for realising the sector's full potential for the economy. Steps like

abolition of licensing, removal of quantitative restrictions and initiatives to

bring the policy framework in consonance with WTO requirements have set the

industry in a progressive track. Removal of the restrictive environment has

helped restructuring, and enabled industry to absorb new technologies, aligning

itself with the global development and also to realize its potential in the country.

The liberalisation policies have led to continuous increase in competition which

has ultimately resulted in modernisation in line with the global standards as well

as in substantial cut in prices. Aggressive marketing by the auto finance

companies have also played a significant role in boosting automobile demand,

especially from the population in the middle income group.

Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the

automobile sector that has undergone significant changes due to shift in policy

environment. The two-wheeler industry has been in existence in the country

since 1955. It consists of three segments viz. scooters, motorcycles and mopeds.

4

According to the figures published by SIAM, the share of two-wheelers in

automobile sector in terms of units sold was about 80 per cent during 2003-¬04.

This high figure itself is suggestive of the importance of the sector. In the initial

years, entry of firms, capacity expansion, choice of products including capacity

mix and technology, all critical areas of functioning of an industry, were

effectively controlled by the State machinery. The lapses in the system had

invited fresh policy options that came into being in late sixties. Amongst these

policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign

Exchange Regulation Act (FERA) were aimed at regulating monopoly and

foreign investment respectively. This controlling mechanism over the industry

resulted in: (a) several firms operating below minimum scale of efficiency; (b)

under-utilisation of capacity; and (c) usage of outdated technology.

Recognition of the damaging effects of licensing and fettering policies led to

initiation of reforms, which ultimately took a more prominent shape with the

introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to

the major macroeconomic crisis faced by the economy. The industrial policies

shifted from a regime of regulation and tight control to a more liberalised and

competitive era. Two major results of policy changes during these years in two-

wheeler industry were that the, weaker players died out giving way to the new

entrants and superior products and a sizeable increase in number of brands

entered the market that compelled the firms to compete on the basis of product

5

attributes. Finally, the two-¬wheeler industry in the country has been able to

witness a proliferation of brands with introduction of new technology as well as

increase in number of players. However, with various policy measures

undertaken in order to increase the competition, though the degree of

concentration has been lessened over time, deregulation of the industry has not

really resulted in higher level of competition.

A Growth Perspective

The composition of the two-wheeler industry has witnessed sea changes in the

post-reform period. In 1991, the share of scooters was about 50 per cent of the

total 2-wheeler demand in the Indian market. Motorcycle and moped had been

experiencing almost equal level of shares in the total number of two-wheelers.

In 2003-04, the share of motorcycles increased to 78 per cent of the total two-

wheelers while the shares of scooters and mopeds declined to the level of 16

and 6 per cent respectively. A clear picture of the motorcycle segment's gaining

importance during this period is exhibited by the Figures 1, 2 and 3 depicting

total sales, share and annual growth during the period 1993-94 through 2003-04.

National Council of Applied Economic Research (NCAER) had forecast two-

wheeler demand during the period 2002¬-03 through 2011-12. The forecasts

had been made using econometric technique along with inputs obtained from a

primary survey conducted at 14 prime cities in the country. Estimations were

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based on Panel Regression, which takes into account both time series and cross

section variation in data.

A panel data of 16 major states over a period of 5 years ending 1999 was used

for the estimation of parameters. The models considered a large number of

macro-economic, demographic and socio-economic variables to arrive at the

best estimations for different two-wheeler segments. The projections have been

made at all India and regional levels. Different scenarios have been presented

based on different assumptions regarding the demand drivers of the two-wheeler

industry. The most likely scenario assumed annual growth rate of Gross

Domestic Product (GDP) to be 5.5 per cent during 2002¬-03 and was

anticipated to increase gradually to 6.5 per cent during 2011¬-12. The all-India

and region-wise projected growth trends for the motorcycles and scooters are

presented in Table 1. The demand for mopeds is not presented in this analysis

due to its already shrinking status compared to' motorcycles and scooters.

It is important to remember that the above-mentioned forecast presents a long-

term growth for a period of 10 years. The high growth rate in motorcycle

segment at present will stabilise after a certain point beyond which a condition

of equilibrium will set the growth path. Another important thing to keep in mind

while interpreting these growth rates is that the forecast could consider the trend

till 1999 and the model could not capture the recent developments that have

taken place in last few years.

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However, this will not alter the regional distribution to a significant extent.

Table 1 suggests two important dimensions for the two-¬wheeler industry. The

region-wise numbers of motorcycle and scooter suggest the future market for

these segments. At the all India level, the demand for motorcycles will be

almost 10 times of that of the scooters. The same in the western region will be

almost 20 times. It is also evident from the table that motorcycle will find its

major market in the western region of the country, which will account for more

than 40 per cent of its total demand. The south and the north-central region will

follow this. The demand for scooters will be the maximum in the northern

region, which will account for more than 50 per cent of the demand for scooters

in 2011-12.

Table 1: Demand Forecast for Motorcycles and Scooters for 2011-12

2-Wheeler

Segment

Regions

South WestNorth-

Central

East & North-

East

All

India

Motorcycle2835

(12.9)

4327

(16.8)

2624

(12.5)

883

(11.1)

10669

(14.0)

Scooter203

(2.6)

219

(3.5)

602

(2.8)

99

(2.0)

1124

(2.08)

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The present economic situation of the country makes the scenario brighter for

short-term demand. Real GDP growth was at a high level of 7.4 per cent during

the first quarter of 2004. Both industry and the service sectors have shown high

growth during this period at the rates of 8.0 and 9.5 per cent respectively.

However, poor rainfall last year will pull down the GDP growth to some extent.

Taking into account all these factors along with other leading indicators

including government spending, foreign investment, inflation and export

growth, NCAER has projected an average growth of GDP at 6.7 per cent during

the tenth five-year plan. Its mid-term forecast suggests an expected growth of

7.4 per cent in GDP during 2004-05 to 2008-09. Very recently, IMF has

portrayed a sustained global recovery in World Economic Outlook. A

significant shift has also been observed in Indian households from the lower

income group to the middle income group in recent years.

The finance companies are also more aggressive in their marketing compared to

previous years. Combining all these factors, one may visualise a higher

growth rate in two-wheeler demand than presented in Table 1, particularly

for the motorcycle segment.

There is a large untapped market in semi-urban and rural areas of the country.

Any strategic planning for the two¬-wheeler industry needs to identify these

markets with the help of available statistical techniques. Potential markets can

be identified as well as prioritised using these techniques with the help of

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secondary data on socio-economic parameters. For the two-wheeler industry, it

is also important to identify the target groups for various categories of

motorcycles and scooters.

With the formal introduction of secondhand car market by the reputed car

manufacturers and easy loan availability for new as well as used cars, the two-

wheeler industry needs to upgrade its market information system to capture the

new market and to maintain its already existing markets. Availability of easy

credit for two-wheelers in rural and smaller urban areas also requires more

focussed attention. It is also imperative to initiate measures to make the

presence of Indian two-wheeler industry felt in the global market. Adequate

incentives for promoting exports and setting up of institutional mechanism such

as Automobile Export Promotion Council would be of great help for further

surge in demand for the Indian two-wheeler industry.

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INTRODUCTION

The TVS Group is one of India's largest industrial conglomerates. TV Sundram

Iyengar and Sons Limited, established in 1911, is the parent and holding

company of the TVS Group.

TVS Motor Company is the third largest two-wheeler manufacturer in India and

one among the top ten in the world, with annual turnover of more than USD 1

billion in 2008-2009, and is the flagship company of the USD 4 billion TVS

Group. With a workforce of over 5000, the company has 4 plants - located at

Hosur and Mysore in South India, in Himachal Pradesh, North India and one at

Indonesia. The company has a production capacity of 300 thousand units a year.

TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and

Cars. It represents premier automotive companies like Ashok Leyland,

Mahindra and Mahindra Ltd., Fiat and Honda. It also distributes automotive

spare parts for several leading manufacturers.

TVS & Sons has grown into a leading logistics solution provider and has set up

state-of-the-art warehouses all over the country. It has also diversified into

distributing Garage equipment that ranges from paint booths to engine analyzers

and industrial equipment products.

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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 Components Limited - Large OE supplier of two wheeler

gears and camshafts.

Lucas Indian Service Limited (www.lucasindia.com) - Company looks after

the distribution of auto electrical components all over India.

Axles India Limited - A joint venture with Eaton Limited, U.K. Manufactures

axle housings and drive heads for heavy and light commercial vehicles

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COMPANY AT PRESENT & IN FUTURE

Successfully launched the Victor and Fiero-F 2 models after parting ways

with Suzuki.

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

The company is suffering a decline in volumes due to poor response of its

two strokes Max motorcycles.

Recently launched the TVS Centra and 125 cc TVS Victor GLX and four

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

Plans major foray into three-wheeler and quadricycles market through

fresh investments of Rs 500 crore.

Actively looking to set up manufacturing unit in Indonesia or Vietnam.

Strong focus on R&D and product development.

Apache the Savior

TVS launched Apache RTR 160 cc model in September 2008, with its ultra

modern technology for Indian bikes has proved to be a big success. The success

of TVS Apache is especially significant because it was developed with

indigenous technology.

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Two stroke Max Range – On the way out

The company is currently looking forward to phase out its two stroke Max

range, which is perceived to be less fuel efficient with a new four stroke range.

The changeover is expected to take place by the end of June 2009.

Two new launches could out TVS on a high growth

trajectory

TVS Centra

TVS Centra a new 100 cc 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 125 cc TVS Victor has been launched which will improve

the trajectory of the company.

Three wheeler project- entering a new market

TVS Motor has set the stage for entry into the three-wheeler markets 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 ton passenger and

goods carriers segment of the market.

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With an investment of about Rs 50 crore in phase-1, it will cater to both

passenger and cargo segments. The total investments for the three wheeler and

four-wheeler quardricycle project are expected to be in the range of Rs 500

crore in the next two-three years. It plans to go with 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 03, 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 FY05 to garner a 30% market share with around

100,000 unit sales by the end of FY08.

Three-wheeler market scenario

These are two main segments in the Indian passenger three -wheeler markets

are:

Number of seats, including driver, not exceeding 4 and maximum mass not

exceeding 1 tonne.

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

exceeding 1.5 tonnes.

The three-wheeler goods carrier segments are:

Maximum mass not exceeding 1 tonne

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Others.

Around 95% of the three-wheeler sold in India belongs 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 logistics purpose.

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

companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Quardricycle-A new introduction in the Indian market

There is a new challenger emerging in the Quardricycle segment. These new

vehicles could impact on the entry level sales. These new vehicle could impact

on the entry level sales. Quardricycles are three wheelers converted into four

wheelers by using, a column axle. All the major three-wheeler units have

prepared Quardricycles prototypes.

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Merger of engine components Division of Lakshmi Auto components with

TVS Motor:

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 for every seven share

held as consideration for the merger. Presently TVS motor holds 66.5% of

equity capital of LAC, which would be cancelled. Around 66% of LAC’s sales

come from the engine components division, mode of which is currently being

sold to TVS motor. LAC’s total net sales in HI FY 04 were Rs. 69 crore and

made a net profit of Rs. 10.5 crore..

The Plastics and Rubber components division of LAC will be transferred to the

wholly owned subsidiary company, Sundaram Auto Components Ltd. The total

consideration on slump – sale based is Rs. 12.25 crore.

Strong focus on R&D

The company has put in place a strong R & D team consisting 400 engineers &

is spending about 3% of its turnover on R & D every year and has in the

process setup a strong world class facility for product design and development.

During 2002-03, the company applied for 16 patents & published five technical

research papers in international conference. Modified research projects are

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carried in association with leading international research labs and Indian

institutes. R & D as percentage of sales in expected to increase from 1.5% in FY

o2 to 3.2% in FY 04.

Valuation

The company’s valuations are dependent on five events:

Current four businesses grow at the normal industry growth rates.

New product launches achieve their targets and are well accepted by the

market.

Three wheeler foray achieve targeted volume in the desired rates of return on

capital employed.

Quadricycle foray achieve the desired rate of return on the capital employed.

Overall investment returns

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TVS MOTOR COMPANY

TVS Motor Company Limited, part of the TVS Group, is one of India's leading

two-wheeler manufacturers. With a turnover of over Rs.2700 crores, the

Company manufactures a wide range of motorcycles, scooters, mopeds and

scooterettes. Little wonder, it boasts of more than 7 million happy customers.

The chapter called two wheelers in India begins…..

The year was 1980. And it is a year to remember for the Indian two-wheeler

industry. For it was this year that saw India's first two-seater moped, TVS 50,

rolling out on the Indian roads. For some it was freedom to move. For some,

shorter distances to span. For the Indian Automobile sector, a breakthrough to

be etched in history.

With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki

became the first Indian company to introduce 100 cc Indo-Japanese motorcycles

in September 1984. Through an amicable agreement the two companies parted

ways in September 2001.

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Unmatched Performance

Today TVS Motor Company has the largest market share in the moped category

with a whopping 65.3% and is also the undisputed leader in the scooterette

segment with 34.3% share. It also holds 18.3% market share in motorcycles.

Graph

Wide Network

With a strong sales and service network of 500 Authorized Dealerships, 1018

Authorized Service Centres and over 864 Certified Service Points, TVS is

growing from strength to strength.

World Class Facilities

The company manufactures its motorcycles, scooterettes and mopeds at its

state-of-the-art factories in Mysore and Hosur.

Product Range

TVS offers a wide range of two-wheelers

- Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS

Max 100 R

- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S

- Mopeds - TVS XL Super/ TVS XL Super HD

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VISION

TVS Motor - Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core

competence and profitability. TVS Motor will provide total customer

satisfaction by giving the customer the right product, at the right price, at the

right time.

TVS Motor - The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India

and one among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian

markets, capitalizing on the expertise developed in the areas of manufacturing,

technology and marketing. The thrust will be to achieve a significant share for

international business in the total turnover.

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant

benchmarking against international leaders.

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TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in

perpetuity by adopting TQM as a way of life. TVS Motor believes in the

importance of the process. People and projects will be evaluated both by their

end results and the process adopted.

TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being is

dependent on the commitment and growth of its people. There will be a

sustained effort through systematic training and planning career growth to

develop employees' talents and enhance job satisfaction. TVS Motor will create

an enabling ambience where the maximum self-actualization of every employee

is achieved. TVS Motor will support and encourage the process of self-renewal

in all its employees and nurture their sense of self worth.

TVS Motor - Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and

Environmental aspects with all business activities and ensures protection of

employees and environment including development of surrounding

communities. TVS Motor strives for long-term relationships of mutual trust and

inter- dependence with its customers, employees, dealers and suppliers.

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TVS MOTOR COMPANY

The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar. As one of

India’s largest industrial entities it epitomizes Trust, Value and Service. It all began way back

in 1984 when Sundaram Clayton Limited (A TVS Group company) introduced its 50 CC

mopeds in the arena of road racing, notching up unbelievable speeds of 105 kmph. Since

then, there has been no looking back for TVS Motor Company. TVS Racing was established

in 1987 with the objective of improving the performance of its bikes. Over the years it has

provided valuable data, design inputs, development of reliable motorcycle models, excellent

vehicle dynamics & handling etc. The true evidence of it is seen in today's TVS Victor and

TVS Fiero. Today, there are over thirty companies in the TVS Group, employing more than

40,000 people worldwide and with a turnover in excess of USD 2.2 billion.

With steady growth, expansion and diversification, TVS commands a strong presence

in manufacturing of two-wheelers, auto components and computer peripherals. We also have

vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance

and insurance.

TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS

Group, is the third largest two-wheeler manufacturer in India and among the top ten in the

world, with an annual turnover of over USD 650 million.

The year 1980 is one to be remembered for the Indian two-wheeler industry, with the

roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable

personal transportation. For the Indian Automobile sector, it was a breakthrough to be etched

in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be

honoured with the hallmark of Japanese Quality – The Deming Prize for Total Quality

Management.

23

MANY FIRSTS TO THE AUTOMOTIVE INDUSTRY IN INDIA

TVS has been at the forefront in bringing a revolution in the way personal

commutation was happening, way back in the 1980s. Beginning with launching

a simple, easy-to-use moped for the middle class in India in the 1980s to

launching 7 new bikes in a single day (first time in the history of the automotive

industry in the world), TVS has often taken the unbeaten path to innovation.

Ushering in the personal transportation revolution

 

1980 Launched TVS 50, India's first 2 seater 50 cc moped

1984 First Indian company to introduce 100 cc Indo - Japanese

motorcycles

1994 Launched India's First indigenous scooterette (sub - 100 cc

variomatic) - TVS Scooty

1996 Introduced India's first catalytic converter enabled motorcycle, the

110 cc Shogun

1997 Introduced India's first 5 speed motorcycle, Shaolin

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

2001 Launched India's first fully indigenously designed and manufactured

24

motorcycle.

2004 Launched the revolutionary VT-I engine for the best in class mileage

in TVS Centra

2006 Launched TVS Apache - first bike to win 6 awards in a row

2007 Apache RTR - first two wheeler in India to have racing inspired

engine and features.

2008 TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS

King launched.TVS MOTORS LIMITED.

TVS Motors

Type Private Conglomerate (BSE)

Founded in 1911 by Shri.T V Sundaram Iyengar

Headquarters Chennai, Tamilnadu, India

Key people Mr.Venu Srinivasan Chairman

ProductsMotorcycles,Mopeds,Ungeared scooters, Automotive

components

Revenue USD 2.2 billion (FY 2006)

Employees 5,633 (2007)

Website www.tvsmotor.in25

TV Sundaram Iyengar and Sons Limited (TVSs) is the holding company for

the TVS Group of companies engaged in the manufacturing of almost all kinds

of automotive components, best two wheelers and a few other industrial

products. They are also into the financial services sector. The turnover of the

entire group was close to $2 billion in 2003.TVS was founded by T. V.

Sundaram Iyengar in 1911.

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 allowed 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.

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

outskirts of Chennai (formerly Madras).

TVS MOTORS

TVS Motor Company has its origin in SUndaram CLayton Limited, Moped

Division, started in 1980. The factory was started in Hosur, Tamilnadu in

26

southern India. The first product launched was a 50 cc moped, which appealed

to the masses because of its capability to carry two people. In the same location,

the same promotors started another company in 1984, in collaboration with

Suzuki Motor Corporation of Japan, for the manufacture of 100 cc motorcycles

under the brand name of Ind-Suzuki Motorcycles. Subsequently in the moped

division was bought by Ind Suzuki Motorcycles in 1987 and the company

changed its name to TVS Suzuki Ltd. Even though the company started

producing all kinds of two wheelers like mopeds, scooters and motorcycles, the

collaboration with Suzuki continued for the motorcycles only. The collaboration

with Suzuki Motor Corporation ended in 2001 and since then the name of the

company changed to TVS Motor Company. The company now develops all

types of two-wheelers through its own in house R&D facility and manufactures

in three locations in India, Hosur in Tamlnadu, Mysore in Karnataka and Baddi

in Himachal Pradesh. It has recently started a new manufacturing plant in

Indonesia to cater to the South east Asian market. The Chairman and Managing

Director of the Company is Mr. Venu Srinivasan who is the grandson of TV

Sundaram Iyengar.

TVS Group Companies

Sundaram Brake Linings

Sundaram Fastners

Southern Roadways

27

Sundaram Finance

Sundharams Private Limited

Brakes India Limited

THE MAJOR PRODUCTS

Motorcycles

TVS Ind Suzuki AX 100

TVS MAX 100

TVS MAX R 100

TVS Supra

TVS Suzuki Samurai

TVS Suzuki Shogun

TVS Suzuki Shaolin

TVS Suzuki Fiero

TVS Fiero

TVS Star

TVS Star City

TVS Star city deluxe

28

TVS Star Sport

TVS Fiero F2

TVS Fiero FX

TVS Centra

TVS Victor (110 cc)

TVS Victor GLX (125 cc)

TVS Victor EDGE (125 cc)

TVS Flame (125 cc,ccvti technology)

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

TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection)

TVS Flame

Scooterettes

TVS Scooty ES (60 cc)

TVS Scooty KS (60 cc)

TVS Scooty Pep (75 cc)

TVS Scooty Pep + (90 cc)

29

TVS Teenz

TVS Teenz Electric

Mopeds

TVS XL 50(50 cc)

TVS XL (60 cc

TVS Eco

TVS Astra

TVS XL Super (60 cc)

TVS XL Super Heavy Duty

TVS Champ (60 cc)

TVS Super Champ (60 cc)

TVS APACHE

Price: Rs.58,600/- (Pune)

Displacement 150 cc

Good Balance, Good brakes

4-stroke single cylinder

Electric start & kick start option

Six-spoke black alloy wheels

30

MILESTONES

Launched Centra in January 2004, a TECHNOLOGY Uncompromising Quality,

TECHNOLOGY

TVS Motor Company's R&D division has an imposing pool of talent and one of

the most contemporary labs, capable of developing innovative designs.

Committed to achieving total customer satisfaction through Total Quality

Control (TQC), the Company continuously strives to give the customer, the best

value for money.

ECO-FRIENDLY

TVS is committed to protecting the environment. The company's manufacturing

facilities at Mysore & Hosur have state-of-the-art facilities & air pollution

control measures. Even the suppliers are encouraged to ensure that their

products meet eco-friendly norms.

ALWAYS FIRST

- Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.

- First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept

1984.

31

Launched India's first indigenous Scooterette, TVS Scooty in June 1994.

- Introduced India's first catalytic converter enabled motorcycle, the 110cc

Shogun in Dec 1996.

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

- Launched India's first high performance moped - the XL Super, with a 70 cc

engine in Nov 1997.

- Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.

World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class

mileage.

AWARDS Deming Award

TVS Motor is the third Indian company to win the Deming Prize. Only two

other TVS companies have managed this before.

It's been a long time since the Union of Japanese Scientists and Engineers

instituted the Deming Prize. But very, very few organizations outside Japan

have had the honor of receiving it. In fact, the TVS Motor Company is the

world's first motorcycle company to be awarded the prize.

32

As for the TVS Group, it's a third. Sundaram-Clayton Ltd. (Brakes Division)

and Sundaram Brake Linings Ltd. have already won it. The Deming Prize is

the ultimate confirmation of our commitment to quality control. A confirmation

known to every TVS rider across the country.

TVS Motor Company unveils TVS Centra with 'VT-i Engines'

Creates History in the Technology Frontier of the

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales

mark in 40 days

Hosur, March 6, 2004: TVS Motor Company today announced that the sales of

TVS Centra, powered by the indigenously developed Variable Timing

Intelligent (VT-i) engine technology crossed 20,000 units in just 40 days since

its launch in mid January 2004, the best ever clocked by any new product from

the TVS Motor Company stable. This achievement is expected to spiral the

overall growth of TVS Motorcycles sales in the coming months.

The impressive sales figures reflect the customer's faith in the technological

capability of TVS Motor Company to fully live up to its promise of delivering a

world-class product at an affordable price. Due to excellent customer feedback

across the country, TVS dealers are being pressurized with enquiries on the new

100 CC 4 Stroke Centra and its revolutionary VT-i engine technology. Having

caught the public's imagination, TVS Centra has fully lived up to its promise of

33

a 'Fill it Once a Month Bike' where a full tank of petrol lasts for a month based

on the average use of motorcycle customers.

A panel of leading auto experts in India, after having tested TVS Centra, have

endorsed the fact that it was the 'best in its class' and also commended TVS

Motor Company on its technology prowess and innovation.

TVS Centra is powered by VT-i engines which are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental

actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction.

Added to its technological edge are features that include attractive price, fuel

efficiency, low maintenance, contemporary style, ride comfort and backed by

TVS Motor Company's reliability, making it truly the preferred two-wheeler in

its class.

Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor

Company's commitment to produce the best technology in its products for its

customers has led to the launch of TVS Centra with Variable Timing intelligent

engines

(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.

34

This revolutionary new VT-i engine technology, developed indigenously by

TVS Motor Company, inbuilt into TVS Centra will make it the most fuel-

efficient motorcycle in the Country. It will be rightfully called as the 'Fill it

Once a Month Bike' where a full tank of petrol will last for a month based on

the average use of motorcycle customers.

The VT-i Engines by TVS Motor Company will go down in the history of the

Automobile Industry in India as one of the most innovative technology

developed indigenously. The VT-i engines are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental

actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction. This action facilitates deceleration fuel

cut off, faster warm up of the Engine and has four curve ignition mapping

Like all TVS Motor Company products, TVS Centra too has been engineered

and designed keeping in mind extensive customer feedback and changing

customer needs. TVS Centra will be the first motorcycle in India that will

bundle price, mileage, maintenance, style, reliability, power, ruggedness and

ride comfort making it truly a value for money personal transportation two-

wheeler. Those who want all these performance attributes in a commuter

motorcycle at a great price; nothing will beat the TVS Centra for all the

advantages it offers.

35

TVS Centra is built around to give a mileage that will offer atleast 10 per cent

more than any other motorcycle in the country, today. It will be powered by 7.5

Brake Horse Power (Bhp) at 7250 RPM making it the most powerful

motorcycle in its class. TVS Centra will also be known for its nimble handling

and riding comfort enabling easy maneuvering even in busy city traffic. Its

contemporary style with big muscular tank and well-rounded looks with a

horizontal engine and superior ergonomics will mark a new standard in the

popular segment of two wheelers. It will come with Econometer to keep a check

on the mileage / power ratio, wide and skid free seat and Utility space.

TVS Motor Company posts 117,101 two wheeler sales in

October 2008; Exports up by 30%

Hosur November 1, 2008 : TVS Motor Company has registered total two

wheeler sales of 117,101 units in October 2008 against 129,614 units in the

corresponding period of the previous year.

This year, both the important festivals of Dussera and Deepavali were

celebrated in October and consequently, placement of stocks with the dealers

for the festival season was effected in September. Restricted availability of

retail finance, high liquidity and general inflationary trends witnessed by the

36

market also affected sales. However, the cumulative sales of September 2008

and October 2008, show a growth of 4% when compared to the same period of

the previous year.

The company's motorcycle sales stood at 59,217 units in comparison with

67,752 units recorded in October 2007. Scooters recorded 23,487 units as

against 28,119 units during the same period of the previous year

During the month, the company won two prestigious IT Awards, namely the

SAP ACE 2008 award and the 2008 Symantec South Asia Visionary Award.

While the company won the SAP ACE Award for digitization of new product

development process in SAP by implementing PLM (Product Lifecycle

Management), the Symantec South Asia Visionary Award was conferred for the

way the company secured and managed systems and information.

Exports continued its upward growth trend, posting an increase of 30%;

registering 17,013 units of two wheelers in October 2008 as against 13,042 units

in the corresponding period of the previous year.

TVS Motor revenues grow at 23.2% in Q2 exports up 52%

37

Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 %

increase in revenues, registering Rs. 1034 crores for the quarter ended

September 2008 of the financial year 2008-09, when compared to Rs. 839

crores in the corresponding quarter of the previous year. Despite the challenging

environment caused by increasing input material costs, general inflationary

trends and lack of availability of retail finance, the company has posted Profit

before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores when

compared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding period of

the previous year. The last year's September Quarter had the benefit of Rs. 10.2

crore (net) on account of exceptional items. Profit before exceptional items for

the quarter is higher at Rs. 13.9 crore in comparison with Rs. 6.7 crores of the

corresponding quarter of last year.

The company has recorded growth in sales despite adverse retail financing.

Motorcycles witnessed higher sales at 1.81 lakh during the quarter compared to

1.44 lakh units over the previous period. Scooters clocked sales of 0.77 lakh in

comparison to 0.76 lakh units during the corresponding quarter of the previous

year.

During the quarter, the company crossed yet another milestone when it reached

two million units of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza

became the new Brand Ambassador for the Scooty brand. The company chose

to associate with Sania as brand ambassador since she emanates the brand

qualities of independence, progress and accomplishment.

38

During the quarter, the company further broadened the horizons of its TVS

Scooty brand with the launch of Balancing Wheels, a unique and innovative

product engineered specifically for the TVS Scooty, addressing a never-before

segment, who do not know how to ride, even a bicycle.

In June 2008, the company unveiled its feature rich TVS Apache RTR FI

offering riders the instant thrill and superior performance of a fuel injected

160cc engine. The second quarter also witnessed the commemoration of the first

anniversary of the Apache RTR brand while the company crossed yet another

landmark delivering the 2,50,000thApache.

Exports

Exports continued the upward growth path registering a total number of 0.55

lakh units during the quarter ended September 2008, recording a growth of 52%

over the same period last year. The company has expanded its footprint to more

than 54 countries across the globe.

Future Outlook

The global financial crisis, the consequent serious liquidity issues and higher

financing costs are likely to impact the growth prospects of the two-wheeler

industry. Retail finance has become even more difficult. The tight liquidity will

39

affect the ability of dealers to stock two-wheelers. The drop in the commodity

prices, however, is a welcome break.

The company will continue the vigorous implementation of its improved value-

engineering program to reduce costs. The company continues to maintain the

highest quality standards of all its products.

40

SUB DIVISION OF SHARES

In order to improve the shareholder value and to facilitate greater liquidity in its

equity shares, TVS Motor Company recently subdivided the face value of its

shares to Re. 1/- each. Earlier the face value of the shares was Rs. 10/-

MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR

COMPANY

The Shareholders of TVS Motor Company and Lakshmi Auto Components

(LAC) have on 19th January 2004 approved the merger of Engine Division of

LAC with TVS Motor Company and transfer of Rubber and Plastics division of

LAC to Sundaram Auto Components Limited, a wholly owned subsidiary of

TVS Motor Company. The company expects to obtain the approval of High

Court of Tamil Nadu and complete other statutory formalities in the next few

months. This merger is expected to improve the overall profitability of TVS

Motor Company.

41

PRODUCT PROFILE

TVS APACHE (RTR)

The recently launched TVS Apache RTR FI 160 has added an another stunner

on the roads. Stylish alloys, unique grab rails, classy silencer, larger & sharp

lined fuel tank, all these elements combine perfectly to give TVS Apache RTR

160 a sporty eye-catching looks.

The Apache RTR 160 has been upgraded with electronic fuel injection (EFI)

and becomes Apache RTR 160 Fi. The EFI technology has enabled TVS to

boost peak power of this bike. TVS has priced the new model at Rs. 65000.

TVS SCOOTY PEP – First Love

A sleek duo-tone body. Body colored coordinated mirrors. A smiley headlamp.

Winky indicators. Looks even better with you on it.

POWER

75cc 4stroke engine to pep up your ride. A bigger, more comfortable seat for

two and strong hydraulic shock absorbers for a smoother ride.

TECHNOLOGY

A unique power/economy mode for extra mileage. An auto reserve fuel tap. No

more turning knob from main to reserve. Auto chokes for instant starts. Every

time.

SAFETY

Puncture Resistant Tyres that come with a special sealant inside, minimizing

chances of a flat. A side stand alarm that beeps if you forget to take off the

42

stand. Multi focal reflector headlamp and side reflectors for enhanced visibility.

Now all you need is an equally funky helmet and you” re all set to pep.

43

INTRODUCTION OF THE PROJECT

Someone has rightly said that practical knowledge is far better than classroom

teaching. During this project I fully realized this and I came to know about how

a consumer chooses among a varied range of products available to him.

The subject of my study is market survey of customer buying behavior in bikes

taking TVS for comparison, which has slowly but steadily evolved, from a

beginner to a corporate giant earning laurels and kudos throughout.

The report contains first of all brief introduction about the company. Finally

there comes data presentation and analysis in the end of my report. I also put

forward some of my suggestion hoping that they help TVS Motor Company

move a step forward to being the very best.

44

SCOPE OF THE STUDY

The scope of the study is to study the customer buying behavior of the

respondents in New Delhi and attain the awareness level of the customers. The

scope is that the services of the dealer, advertising media as well as celebrity

has made an effect on the customer or not and how much.

This study also allows knowing the future prospects of the company and where

it is at present in the market.

OBJECTIVE OF THE STUDY

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

respondents in motorbikes of different brands .

To study the future prospects of TVS motorbikes.

To provide a fair picture of technology used by TVS motors.

To study the sales trends of tvs motors.

To analyze the quality of after sales services being provided by tvs motors.

45

RESEARCH METHODOLOGY

SAMPLE SIZE

SAMPLE LOCATION

RESEARCH TYPE

DATA TYPE

INSTRUMENTS

46

SAMPLE SIZE AND LOCATION

The data has been extracted mainly from questionnaires filled up by

respondents from Agra.

Rest of the information has been collected through internet surveys and social

networking communities on websites.

The questionnaire was filled up by 50 respondents scattered at different places

and many more respondents provided valuable information through the internet.

The aforementioned questionnaire has been attached at the end of the project.

RESEARCH AND DATA TYPES

The purpose of methodology section in the report making is to describe the

research process that is followed while doing the main part. The research design

plays a pivotal role in the quality and content of the data in making of any

project report. The type of research design chosen is seen to have a bearing on

all the aspects of report writing.

Research Design: Descriptive Research design

The research design undertaken for the study was Descriptive one. The reason

for using a descriptive research method was to obtain qualitative data and also

since the nature of study is as such that it required the exploration of various

aspects within and outside the company.

47

In order to carry out a well researched analysis efforts were taken to collect

enough information from the respondents. For this purpose various primary and

secondary sources were used. This would however include the research design,

the sampling procedure, and the data collection method. This section is perhaps

difficult to write as it would also involve some technical terms and may be

much of the audience will not be able to understand the terminology used. The

methodology followed by the researcher, during the preparation of the report

was:

Source of Data Collection

a) SECONDRY DATA

b) PRIMARY DATA

SECONDRY DATA - When an investigator uses the data that has been already

collected by others is called secondary data. The secondary data could be

collected from Journals, Reports, and various publications. The advantages of

the secondary data can be –It is economical, both in terms of money and time

spent .The researcher of the report also did the same and collected secondary

data from various internet sites like Google.com, altavista.com and many more.

The researcher of the report also visited various libraries for collection of the

introduction part.

48

PRIMARY DATA - Primary data is that kind of data that is collected by the

investigator himself for the purpose of the specific study. The data such

collected is original in character. The advantage of this method of collection is

the authentic. A Set Of Questions Were Put Together In The Form Of

Questionnaire With 13 Questions. The method of sampling was the Random.

INSTRUMENTS for Data Collection

The instruments used for collection of data were mainly questionnaires, internet

surveys and personal visits to the respondents.

Tools Used for Analysis

Bar Diagram

Pie Diagram

Tables

49

ANALYSIS OF CUSTOMER BUYING BEHAVIOUR

Agra

50

QUE-1

DO YOU OWN A BIKE?

93%

0% 7%

YES NO

INTERPRETATION

In this question particular question it is found that 93% of respondents are

having motorbike and 7% are either having scooter or moped. On the basis of

the above pie-chart it is clear that more people own bike.

51

QUE-2

72

88

66

60

46

29

42

0

10

20

30

40

50

60

70

80

90

VALUES

BRAND

WHICH BRANDS OF BIKE ARE YOU AWARE OF?

72 88 66 60 46 29 42

BAJAJHERO HOND

A

YAMAHA

TVS LMLKINETI

C

ENFIELD

BULLE

INTERPRETATION

The above bar-graph shows the brand awareness of bikes among the

respondents. In the above bar-graph it is clear that HERO HONDA is the most

popular brand in New Delhi whereas BAJAJ and YAMAHA follow 2nd and 3rd

place. TVS comes at 4th place taking lead from LML, KINETIC and ENFIELD

BULLET.

52

QUE-3

4042

4

9

10

4

0

5

10

15

20

25

30

35

40

45

VALUES

BRAND

WHICH SLOGAN OF BIKE AFFECTS YOU THE MOST AND OF WHICH BRAND…?

40 42 4 9 1 0 4

BAJAJHERO HOND

A

YAMAHA

TVS LMLKINETI

C

ENFIELD

BULLE

INTERPRETATION

The above Bar-Graph shows that in New Delhi area HERO HONDA has scored

the maximum number of points with BAJAJ and TVS on 2nd and 3rd spot. TVS

has scored 9 points out of the sample size of hundred and has taken lead from

LML, KINETIC and ENFIELD BULLET.

53

QUE-4

Which factors do you consider while purchasing a Bike?

HICH FACTORS DO YOU CONSIDER WHILE PURCHASING A

BIKE?

Statistics

100 100 100 100 100 100 100 100

0 0 0 0 0 0 0 0

Valid

Missing

NMILEAGE STYLE POWER PRICE BRAND

SPAREPARTS

AFTER SALESERVICE FINANCING

Frequency Distribution

MILEAGE

58 58.0 58.0 58.0

19 19.0 19.0 77.0

15 15.0 15.0 92.0

3 3.0 3.0 95.0

2 2.0 2.0 97.0

2 2.0 2.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

1.00

2.00

3.00

4.00

5.00

6.00

8.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

54

STYLE

12 12.0 12.0 12.0

30 30.0 30.0 42.0

31 31.0 31.0 73.0

16 16.0 16.0 89.0

8 8.0 8.0 97.0

2 2.0 2.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

POWER

25 25.0 25.0 25.0

27 27.0 27.0 52.0

18 18.0 18.0 70.0

9 9.0 9.0 79.0

8 8.0 8.0 87.0

5 5.0 5.0 92.0

5 5.0 5.0 97.0

3 3.0 3.0 100.0

100 100.0 100.0

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

PRICE

2 2.0 2.0 2.0

17 17.0 17.0 19.0

16 16.0 16.0 35.0

39 39.0 39.0 74.0

17 17.0 17.0 91.0

7 7.0 7.0 98.0

2 2.0 2.0 100.0

100 100.0 100.0

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

55

BRAND

3 3.0 3.0 3.0

11 11.0 11.0 14.0

23 23.0 23.0 37.0

37 37.0 37.0 74.0

16 16.0 16.0 90.0

9 9.0 9.0 99.0

1 1.0 1.0 100.0

100 100.0 100.0

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

SPARE PARTS

1 1.0 1.0 1.0

3 3.0 3.0 4.0

5 5.0 5.0 9.0

5 5.0 5.0 14.0

8 8.0 8.0 22.0

28 28.0 28.0 50.0

35 35.0 35.0 85.0

15 15.0 15.0 100.0

100 100.0 100.0

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

FINANCING

1 1.0 1.0 1.0

2 2.0 2.0 3.0

10 10.0 10.0 13.0

30 30.0 30.0 43.0

57 57.0 57.0 100.0

100 100.0 100.0

3.00

4.00

6.00

7.00

8.00

Total

ValidFrequency Percent Valid Percent

CumulativePercent

56

Graphical Representation

57

58

59

60

INTERPRETATION

From the above mentioned tables and graphs we can see that parameters like

mileage, power and style holds an upper edge over the other parameters which

affect the purchase decision of bike. Thus customers are more likely to see the

mileage aspect before actually buying a product.

QUE-5

61

25

50

8

17

0

5

10

15

20

25

30

35

40

45

50

VALUE

FACTORS

WHO INFLUENCED YOU WHILE PURCHASING THE BIKE?

25 50 8 17

FRIENDS FAMILY DEALER MEDIA

INTERPRETATION

From the above graph it is clear that FAMILY plays a major role in the

purchase of bike and the reference and suggestions of FRIENDS come at the

second place. Whereas MEDIA factor comes at third place with DEALER

making no promising affect on the purchase of bike.

QUE-6

62

HAVE YOU VISITED ANY TVS SHOWROOM?

62%

0%

38%

0%

YES NO

INTERPRETATION

As shown in the above PIE CHART, the percentage of respondents who have

visited the TVS SHOWROOM is more than those respondents who have not

visited the TVS SHOWROOM. Thus the interest of customers in TVS product

can relate to 62% among 100 respondents.

QUE-7

63

2

30

22

8

0

5

10

15

20

25

30

VALUES

EXPERIENCE

IF YES, WHAT WAS THE EXPERIENCE?

2 30 22 8

V.GOOD GOOD AVERAGE BAD

INTERPRETATION

As shown in the above graph there are four FACTORS, which show the

experience of the respondents after visiting the TVS showroom. It is clear that

most of the respondents had GOOD experience with 22 respondents having

average experience. Only 8 respondents are having a bad experience, which

shows the quality of the TVS showroom.

64

QUE-8

IF NO, WHY YOU HAVE NOT VISITED THE TVS SHOWROOM?

89%

0%11% 0%0%

NOT INTERESTED IN TVS NOT SATISFIED

INTERPRETATION

As shown in the above PIE-CHART 89% of the respondents are not interested

in TVS products and 11% of them are not satisfied with TVS bikes. This was an

open ended question therefore most of the answers were in account to the

satisfaction level and interest in the TVS BIKES.

65

QUE-9A

DO YOU KNOW ABOUT TVS MOTOR BIKE?

91%

0%9% 0%

YES NO

INTERPRETATIO

As given in the PIE CHART above 91% of the respondents know about TVS

motorbike and only 9% of the respondents are unaware about the TVS

motorbike. This question is based on the awareness as well as past usage of the

TVS motorbike.

66

QUE-9B

100

27

35

9

26

0

10

20

30

40

50

60

70

80

90

100

VALUE

FACTORS

IF,YES WHICH BRAND OF TVS MOTORBIKE?

Series1

Series1 100 27 35 9 26

TVS VICTOR

TVS CENTRA

TVS FIERO F2

TVS FIERO FX

TVS MAX R

INTERPRETATION

As shown in the above BAR GRAPH it is clear that TVS-VICTOR is the most

popular bike in New Delhi as 100 respondents are aware of TVS-VICTOR.

Second most popular bike is TVS-FIERO F-2, which is known by 35% of the

respondents and has taken lead from TVS-CENTRA BY 8% which is on the 3 rd

spot. TVS-MAX-R is on the 4th place with 26% share and has taken lead from

TVS-FIERO-FX by 17%.

67

QUE-9C

HAVE YOU VISITED TVS DEALER DEALERSHIP

YES62%

0%

NO38%

INTERPRETATION

In the PIE CHART given above it is clear that out of 100 respondents 68% of

them have visited the TVS DEALERSHIP and only 38% have not visited the

TVS DEALERSHIP. By the chart given above it makes clear that the TVS

DEALERSHIP has attracted more number of respondents

68

QUE-10

2120

4

10

7

0

5

10

15

20

25

VALUE

FACTORS

WHAT HAVE YOU IKED OR DISLIKED AT TVS DEALERSHIP?

21 20 4 10 7

SERVICE FACILITY IS NOT

SERVICE FACILITY IS GOOD

STAFF IS BAD

STAFF IS GOOD

LACK OF SPACE

INTERPRETATION

As shown in the BAR-GRAPH it is clear that 21% of the respondents are not

satisfied with the service facilities and 20% are satisfied with the service

facilities which comes to equal ratio.10% of the respondents liked the staff and

4% are not satisfied with the staff. Interesting part is that 7% of the respondents

wanted more space at the TVS-DEALERSHIP.

69

QUE-11

DOES CELEBRITY ENDORSEMENT AFFECT THE PURCHASE OF BIKE?

YES34%

0%

NO66%

0%

INTERPRETATION

In the given PIE CHART 66% of the respondents have no affect with the

celebrity endorsement during the purchase of the bike. Whereas 34% of the

respondents agreed that celebrity endorsement do make an effect on the

purchase decision of the bike.

70

QUE-12

48

30

86 6

20

0

5

10

15

20

25

30

35

40

45

50

VALUE

FACTORS

WHICH BRAND DO YOU THINK IS THE MOST POPULAR IN THE MARKET?

48 30 8 6 6 2 0

HERO HOND

ABAJAJ TVS

YAMAHA

ENFIELD

BULLELML

KINETIC

INTERPRETATION

As shown in the BAR DIAGRAM it is clear that HERO HONDA is the most

popular bike in New Delhi with BAJAJ taking the 2nd place with 32%. TVS is

the 3rd most popular bike in New Delhi taking lead from YAMAHA, BULLET,

LML and KINETIC.

71

QUE-13

36

28

11

7

20

16

0

5

10

15

20

25

30

35

40

VALUES

BRANDS

IF THERE IS NO PRICE CONSIDERATION WHICH BRAND WOULD YOU BUY?

36 28 11 7 2 0 16

HERO

HON

BAJAJ

TVSYAMA

HALML

KINETIC

ENFIELD

BULL

INTERPRETATION

In the BAR-CHART it is clear that with no price consideration HERO Honda

will be the first choice following with BAJAJ and ENFIELD BULLET as 2nd

and 3rd choice. Whereas TVS will be the 4th choice which is taking lead over

YAMAHA, LML and KINETIC as 5th, 6th and 7th choice.

72

RECOMMENDATIONS

In the analysis the respondents have shown that they consider TVS motor

company after HERO HONDA and BAJAJ and this is a major concern for

the company. TVS motor company has to make some arrangements to

increase the awareness level among the prospects through media.

The company should also emphasize on other bikes excluding TVS VICTOR

and TVS CENTRA because some of the bikes in TVS like Apache RTR are

more popular than these bikes in the surveyed area.

In New Delhi the respondents who have visited the dealership are not

satisfied with the service facilities which can be improved by regular visit of

the service managers as well as providing regular training to the staff as well

as the owner.

The dealership in New Delhi also lacks in space, which is a major concern

because the first impression on the mind of the customer is about the

window display, which can be improved with the help of the professionals.

The buying behavior of the customers in New Delhi is not focused on the

celebrity endorsement but they want a product which should contain all the

factors and at an affordable price.

73

The customers in New Delhi want more number of dealers in their area so as

to have more options in visiting the dealership. Every

dealership should have the same services and excellent window display so as

to attract more customers.

As in the demographic phase of the respondents the younger generation

wants to have a bike with lot of power and style which TVS should come

within future .As TVS has launched its new bike VICTOR GLX in the

market.

TVS should improve its channel management and should invest in the brand

image in the market.

74

LIMITATIONS

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.

The data used in most part of the report is secondary data, it has inherent

discrepancy.

As TVS is still not a household brand name, some of the respondents were

not completely aware of its products and track record.

75

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 of “Best Transportation”.

Truly the modern world relies on transportation 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 nowadays known as Motorbike.

Each human being that is living in this social world knows the importance of

bikes because it serves the purpose in any kind of situation and in any part of

this world.

The topic of the project is Customer Buying Behavior taking TVS for

comparison. TVS motor company is one of the leading bike manufacturers

in India. The analysis of the project was based on customer’s point of view.

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For the study, both primary data and secondary data were required. The

primary data was collected

based on a survey research, using a structured questionnaire with both open

ended and closed-ended questions.

The sampling procedure used was random sampling for the 1st objective i.e.

to understand consumer needs on motorbikes. For the 2nd objective i.e. to

understand the awareness levels of TVS I went to the prospects and met the

respondents to fill the questionnaire. The mode of survey was of personal

interview, where the respondents filled up the questionnaires. The secondary

data was collected from business newspapers, magazines,

Company brochures, journals and the Internet. The major conclusion from

this study was that TVS has to improve itself to gain the 1 st position in the

market as it is doing well to maintain its 3rd position in the market.

In terms of competition TVS has neck-to-neck 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.

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CONCLUSION

The facts and figures shown in the analysis is correct and the survey has

been done in a good faith and responsibility

As HERO HONDA, BAJAJ and YAMAHA have taken the 1st, 2nd and

3rd position. Thus TVS motor co. has to make some more efforts to

increase the awareness among the people in the context of bikes.

The respondents have been asked about the most effective slogan in

different brands of bikes in which again HONDA and BAJAJ have taken

the lead. TVS motor co. has emphasized only on VICTOR and not on

other bikes, thus people only know about VICTOR and not other bikes.

Print media and different types of media should be used to make people

know about the slogan.

The respondents in the factors, which they consider while purchasing a

bike, have done the ranking. MILEAGE is the first factor following with

POWER and STYLE and also with an adaptable PRICE. The company

has to make efforts for making a product that should have all these three

factors with considerable price.

The most influencing factor in purchasing decision of the bike is

FAMILY and after that FRIENDS which is not at all linked with

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the company investment. The company generally invests in Dealer

promotion and Media, which is not appropriate as analyzed in this

question. Awareness level through Media and dealer should be increased.

When asked about the experience at the TVS dealership most of the

respondents had a good and average experience with a small number

having bad experience. The small number of bad experience can be

avoided by giving warm welcome and good behavior by the staff.

The respondents who have not visited the TVS dealership are either not

interested in TVS bikes or they are not satisfied with TVS products. In

this matter the dealer should increase the road shows as well as arrange

regular customers meeting which will create interests in other prospects.

Most of the respondents had knowledge about the TVS bikes, which is a

good sign for the TVS motor company.

In TVS motor company VICTOR is the most popular bike and very

interestingly without any media interaction FIERO F2 has taken the 2nd

spot with CENTRA on the 3rd spot which has taken a lead with only one

place from MAX-R .It is recommended that FIERO F2 should be given

equal sales promotion than CENTRA because of its popularity has come

through people network and not through channel media.

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The respondents have liked the service facility and the staff but the

important factor is the lack of space. The dealership in New Delhi has to

improve the staff as well as the after sales services and the customer

relations.

Celebrity endorsement does not affect most of the respondents whereas

only 34% of the respondents have an affect over the purchasing decision

of bike. Company should give more importance to the product so as to

give the best in quality to the customer.

In context to popularity TVS ranks 3rd according to this sample size and

thus the company should introduce new products as well as reposition its

product according to the demand in the market.

In the case of no price consideration TVS ranks 4th and according to

survey analysis the respondent wants to purchase his dream bike which

TVS Company has to make in comparison with HERO HONDA, BAJAJ

and ENFIELD BULLET.

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BIBLIOGRAPHY

WEB SITE

Google.com,www.tvsmotor.com

TEXT BOOKS

Marketing Research, Test and cases, Richard D. Irwin, Linois

C.R Kothari, Research Methodology

NEWS PAPER

Times Auto

The Economic Times

MAGAZINES

Auto Sports

Business Outlook

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TVS MOTOR COMPANY CUSTOMER BUYING BEHAVIOUR (Agra )

QUESTIONNAIRE

Que1. Do you own a Bike?

Yes

No

If yes, which Bike do you have?

Specify __________________________________

Que2. Which brands of Bike are you aware of……..?

TVS

HERO HONDA

ENFIELD

YAMAHA

BAJAJ

LML

KINETIC

Que3. Which slogan of Bike affects you the most and of which

brand…?

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Specify___________________________________

Que4. Which factors do you consider while purchasing a Bike? [Rank]

MILEAGE

STYLE

PRICE

BRAND

SPARE PARTS

AFTER SALE SERVICE

Que5. Who influenced you while purchasing the Bike?

FRIENDS

DEALER

FAMILY

MEDIA

Que6. Have You Visited Any TVS Showroom?

Yes

No

Que7. If yes, what was the Experience?

VERY GOOD

GOOD

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AVERAGE

BAD

Que8. If No, why you have not visited the TVS Showroom?

Please Specify______________________________

\

Que9. If you have a Motorcycle other than TVS?

Do you know about TVS Motor bike?

Yes

No

If yes which Brand of TVS Motor bike?

Specify ___________________________________

Have you visited TVS DEALERSHIP?

Yes

No

Que10. What have you liked OR Disliked at TVS DEALERSHIP?

Specify____________________________________

Que11. Does celebrity endorsement affect the purchase of Bike?

Yes

No

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Que12. Which brand do you think is most popular in the Market?

Specify___________________________________

Que13. If there is no price consideration which brand would you buy?

Specify___________________________________

THANKS A LOT FOR PARTICIPATING!!

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