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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.

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
2

Limitations

Summary and Conclusions

References / Bibliography :

Annexure Questionnaires :

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.
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 twowheeler industry were that the, weaker players died out giving way to the new
5

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
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 twowheelers 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 twowheeler demand during the period 2002-03 through 2011-12. The forecasts
6

had been made using econometric technique along with inputs obtained from a
primary survey conducted at 14 prime cities in the country. Estimations were
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 longterm 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.
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
North-

East & North- All

Central

East

India

2835 4327 2624

883

10669

(12.9) (16.8) (12.5)

(11.1)

(14.0)

203

99

1124

(2.0)

(2.08)

South West

Motorcycle
219

602

Scooter
(2.6) (3.5) (2.8)

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

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 twowheeler 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.

10

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.

11

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

12

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.

13

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 1500020000 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 LACs sales
come from the engine components division, mode of which is currently being
sold to TVS motor. LACs 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
17

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 companys 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

18

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
20

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.
21

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.
22

TVS MOTOR COMPANY

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

23

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

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


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

1994
variomatic) - TVS
Scooty
Introduced India's first catalytic converter enabled motorcycle, the 110
1996
cc Shogun
1997

Introduced India's first 5 speed motorcycle, Shaolin

2000

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


Launched India's first fully indigenously designed and manufactured

2001
motorcycle.
Launched the revolutionary VT-I engine for the best in class mileage
2004
in TVS Centra
24

2006

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


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

2007
engine and features.
TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS
2008
King launched.

TVS MOTORS LIMITED.


TV

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


Motorcycles,Mopeds,Ungeared scooters, Automotive

Products
components
Revenue

USD 2.2 billion (FY 2006)

Employees

5,633 (2007)

Website

www.tvsmotor.in

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
25

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
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,

26

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

Sundaram Finance

27

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

TVS Star Sport

28

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)

TVS Teenz

29

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

31

- 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 fuelefficient 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 twowheeler. 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 market

36

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 valueengineering 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

42

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
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

INTERPRETATION

51

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.

QUE-2

INTERPRETATION

52

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 2 nd and 3rd
place. TVS comes at 4th place taking lead from LML, KINETIC and ENFIELD
BULLET.

53

QUE-3

INTERPRETATION

54

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.

55

QUE-4
Which factors do you consider while purchasing a Bike?
HICH FACTORS DO YOU CONSIDER WHILE PURCHASING A BIKE?

Statistics

Valid
Missing

MILEAGE
100
0

STYLE
100
0

POWER
100
0

PRICE
100
0

BRAND
100
0

SPARE AFTER SALE


PARTS
SERVICE
100
100
0
0

FINANCING
100
0

Frequency Distribution
MILEAGE

Valid

1.00
2.00
3.00
4.00
5.00
6.00
8.00
Total

Frequency
58
19
15
3
2
2
1
100

Percent
58.0
19.0
15.0
3.0
2.0
2.0
1.0
100.0

Valid Percent
58.0
19.0
15.0
3.0
2.0
2.0
1.0
100.0

Cumulative
Percent
58.0
77.0
92.0
95.0
97.0
99.0
100.0

56

STYLE

Valid

1.00
2.00
3.00
4.00
5.00
6.00
7.00
Total

Frequency
12
30
31
16
8
2
1
100

Percent
12.0
30.0
31.0
16.0
8.0
2.0
1.0
100.0

Valid Percent
12.0
30.0
31.0
16.0
8.0
2.0
1.0
100.0

Cumulative
Percent
12.0
42.0
73.0
89.0
97.0
99.0
100.0

POWER

Valid

1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Total

Frequency
25
27
18
9
8
5
5
3
100

Percent
25.0
27.0
18.0
9.0
8.0
5.0
5.0
3.0
100.0

Valid Percent
25.0
27.0
18.0
9.0
8.0
5.0
5.0
3.0
100.0

Cumulative
Percent
25.0
52.0
70.0
79.0
87.0
92.0
97.0
100.0

57

PRICE

Valid

1.00
2.00
3.00
4.00
5.00
6.00
7.00
Total

Frequency
2
17
16
39
17
7
2
100

Percent
2.0
17.0
16.0
39.0
17.0
7.0
2.0
100.0

Valid Percent
2.0
17.0
16.0
39.0
17.0
7.0
2.0
100.0

Cumulative
Percent
2.0
19.0
35.0
74.0
91.0
98.0
100.0

BRAND

Valid

2.00
3.00
4.00
5.00
6.00
7.00
8.00
Total

Frequency
3
11
23
37
16
9
1
100

Percent
3.0
11.0
23.0
37.0
16.0
9.0
1.0
100.0

Valid Percent
3.0
11.0
23.0
37.0
16.0
9.0
1.0
100.0

Cumulative
Percent
3.0
14.0
37.0
74.0
90.0
99.0
100.0

SPARE PARTS

Valid

1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
Total

Frequency
1
3
5
5
8
28
35
15
100

Percent
1.0
3.0
5.0
5.0
8.0
28.0
35.0
15.0
100.0

Valid Percent
1.0
3.0
5.0
5.0
8.0
28.0
35.0
15.0
100.0

Cumulative
Percent
1.0
4.0
9.0
14.0
22.0
50.0
85.0
100.0

58

FINANCING

Valid

3.00
4.00
6.00
7.00
8.00
Total

Frequency
1
2
10
30
57
100

Percent
1.0
2.0
10.0
30.0
57.0
100.0

Valid Percent
1.0
2.0
10.0
30.0
57.0
100.0

Cumulative
Percent
1.0
3.0
13.0
43.0
100.0

Graphical Representation

59

70

60

50

40

30

20

Count

10
0
1.00

2.00

3.00

4.00

5.00

6.00

8.00

MILEAGE

40

30

20

Count

10

0
1.00

2.00

3.00

4.00

5.00

6.00

7.00

STYLE

60

30

20

Count

10

0
1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

POWER

50

40

30

20

Count

10

0
1.00

2.00

3.00

4.00

5.00

6.00

7.00

PRICE

61

40

30

20

Count

10

0
2.00

3.00

4.00

5.00

6.00

7.00

8.00

BRAND

40

30

20

Count

10

0
1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

SPARE PARTS

62

40

30

20

Count

10

0
1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

AFTER SALE SERVICE

60

50

40

30

20

Count

10

0
3.00

4.00

6.00

7.00

8.00

FINANCING

63

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

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.

64

QUE-6

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.

65

QUE-7

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.

66

QUE-8

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.

67

QUE-9A

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.

68

QUE-9B

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%.

69

QUE-9C

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

70

QUE-10

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.

71

QUE-11

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.

72

QUE-12

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 2 nd place with 32%. TVS is
the 3rd most popular bike in New Delhi taking lead from YAMAHA, BULLET,
LML and KINETIC.

73

QUE-13

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 2 nd
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.

74

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.

75

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.

76

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.

77

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 customers point of view.

78

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 2 nd 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 2 nd
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 4 th 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

83

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

84

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


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VERY GOOD
GOOD

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?
86

Yes

No

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!!
NAME ..
AGE
SEX.
OCCUPATION.
INCOME
PHONE NO. .
ADDRESS.

SIGNATURE:

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