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INTRODUCTION
Marketing is an important socio-economic activity with history of many
centuries. It is an essential activity for the satisfaction of human wants and
for raising social welfare.
Marketing is a societal process by which individuals and groups obtain what they need and want
through creating, offering, and freely exchanging products and services of value with others.
For a managerial definition, marketing has often been described as the art of selling products.
But people are surprised when they hear that the most important part of marketing is not selling!
Selling is only the tip of the marketing iceberg. Peter Drucker, a leading management theorist,
puts it this way:
There will always, one can assume, be need for some selling. But the aim of
marketing is to make selling superfluous. The aim of marketing is to know
and understand the customer so well that the product or service fists him
and sells itself.
Ideally, marketing should result in a customer who is ready
MARKETING CONCEPTS
The philosophy of an organization behind the conduct of marketing activities is called marketing
concept there are six distinct concepts of marketing which are as follows:
Exchange concept
Production concept
Product concept
Sales concept
Marketing concept
Societal concept
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives
in the target market. McCarthy classified these tools into four broad groups that he called the
four Ps of marketing: product, price, place, and promotion.
P L AC E
P R O M O T IO N
M A R KE T IN G M IX
P R IC E
PRO DUCT
RESEARCH METHODOLOGY:
To define any research problem and give a suitable solution for any research, a sound research
plan is inevitable. Research methodology underlines the various steps involved by the researcher
in systematically solving the problem with the objective of determining various facts.
CHAPTER LAYOUT
CHAPTER 1:
Information of the project and introduction of the title
CHAPTER 2:
Profile of TVS HONDA
CHAPTER 3:
Theoretical view of marketing strategy
CHAPTER 4:
Analysis on marketing strategy with reference to TVS HONDA
CHAPTER 5:
Conclusion of the study
CHAPTER 2.
PROFILE
INTRODUCTION OF TVS
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
sector.
in 2003.
the
following
three
divisions:
TVS and Sons: TVS and Sons is the largest automobile distribution company in India. It
distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier
automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The
company is also one of the leading logistics solution providers and has set up state-of-the-art
warehouses all over the country. TVS and Sons have also diversified into distributing a range of
Garage equipments.
Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial Vehicles, Cars, and
auto spare parts for several leading manufacturers. The company is also the dealer for Ashok
Leyland, Honda, Fiat, Ford and Mercedes Benz.
Madras Auto Service: Madras Auto Service distributes automotive spare parts for all leading
manufacturers.
braking
equipment
for
automotive
and
non-automotive
applications.
Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS Group. It
deals
in
retail
finance,
hire
purchase,
leasing
and
bill
discounting.
India Motor Parts and Accessories Limited: It is engaged in the distribution of automobile
spare parts.
India Nippon Electricals Limited: It is a joint venture between Lucas Indian Service and
Kokusan Denki Co Ltd., Japan. The company manufactures Electronic Ignition Systems for two
wheelers
and
portable
genets.
,etc.
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 2007-2008, and is the
flagship company of the USD 4 billion TVS Group.
We are committed to being a highly profitable, socially responsible, and leading manufacturer of
high value for money, environmentally friendly, lifetime personal transportation products under
the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and
prosperity for employees, dealers and suppliers.
CHAPTER 3
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THEORETICAL VIEW
Marketing Strategy
A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. A marketing strategy should be centered around the key concept that customer
satisfaction is the main goal.
A marketing strategy is most effective when it is an integral component of firm strategy, defining
how the organization will successfully engage customers, prospects, and competitors in the
market arena. Corporate strategies, corporate missions, and corporate goals. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A
key component of marketing strategy is often to keep marketing in line with a company's
overarching mission statement.
Basic theory
The basic theory of marketing strategy is:
Target Audience
Proposition/Key Element
Implementation
The Five D's
Tactics and actions
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains
a set of specific actions required to successfully implement a marketing strategy. For example:
"Use a low cost product to attract consumers. Once our organization, via our low cost product,
has established a relationship with consumers, our organization will sell additional, highermargin products and services that enhance the consumer's interaction with the low-cost product
or service."
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A strategy consists of a well thought out series of tactics to make a marketing plan more
effective. Marketing strategies serve as the fundamental underpinning of marketing plans
designed to fill market needs and reach marketing objectives. Plans and objectives are generally
tested for measurable results.
A marketing strategy often integrates an organization's marketing goals, policies, and action
sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which
might include advertising, channel marketing, internet marketing, promotion and public relations
can be orchestrated. Many companies cascade a strategy throughout an organization, by creating
strategy tactics that then become strategy goals for the next level or group. Each one group is
expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it
is important to make each strategy goal measurable.Marketing strategies are dynamic and
interactive. They are partially planned and partially unplanned. See strategy dynamics.
Types of strategies
Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief description
of the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified based on their
market share or dominance of an industry.
Typically there are three types of market dominance strategies:
Leader
Challenger
Follower
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Strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the
market penetration while strategic strength refers to the firms sustainable competitive advantage.
Product differentiation
Market segmentation
Innovation strategies - This deals with the firm's rate of the new product development and
business model innovation. It asks whether the company is on the cutting edge of technology and
business innovation. There are three types:
1. Pioneers
2.Close followers
3.Late followers
Growth strategies - In this scheme we ask the question, How should the firm grow?. There
are a number of different ways of answering that question, but the most common gives four
answers:
Horizontal integration
Vertical integration
Diversification
Intensification
Prospector
Analyzer
Defender
Reactor
Marketing warfare strategies - This scheme draws parallels between marketing strategies and
military strategies.
Strategic models
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Marketing participants often employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of
the strategic environment. An Ansoff Matrix is also often used to convey an organization's
strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing
plan to pursue a defined strategy.
Product
Price
Place (distribution)
Promotion
The term "marketing mix" became popularized after Neil H. Borden published his 1964 article,
The Concept of the Marketing Mix. Borden began using the term in his teaching in the late
1940's after James Culliton had described the marketing manager as a "mixer of ingredients".
The ingredients in Borden's marketing mix included product planning, pricing, branding,
distribution channels, personal selling, advertising, promotions, packaging, display, servicing,
physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these
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ingredients into the four categories that today are known as the 4 P's of marketing, depicted
below:
Distribution channels
Market coverage (inclusive, selective, or exclusive distribution)
Specific channel members
Inventory management
Warehousing
Distribution centers
Order processing
Transportation
Reverse logistics
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18
This framework assumes that an increase in relative market share will result in an increase in the
generation of cash. This assumption often is true because of the experience curve; increased
relative market share implies that the firm is moving forward on the experience curve relative to
its competitors, thus developing a cost advantage. A second assumption is that a growing market
requires investment in assets to increase capacity and therefore results in the consumption of
cash. Thus the position of a business on the growth-share matrix provides an indication of its
cash generation and its cash consumption.
Henderson reasoned that the cash required by rapidly growing business units could be obtained
from the firm's other business units that were at a more mature stage and generating significant
cash. By investing to become the market share leader in a rapidly growing market, the business
unit could move along the experience curve and develop a cost advantage. From this reasoning,
the BCG Growth-Share Matrix was born.
The four categories are:
Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume
a large amount of cash. However, dogs are cash traps because of the money tied up in a business
that has little potential. Such businesses are candidates for divestiture.
Question marks - Question marks are growing rapidly and thus consume large amounts of cash,
but because they have low market shares they do not generate much cash. The result is a large
net cash comsumption. A question mark (also known as a "problem child") has the potential to
gain market share and become a star, and eventually a cash cow when the market growth slows.
If the question mark does not succeed in becoming the market leader, then after perhaps years of
cash consumption it will degenerate into a dog when the market growth declines. Question marks
must be analyzed carefully in order to determine whether they are worth the investment required
to grow market share.
Stars - Stars generate large amounts of cash because of their strong relative market share, but
also consume large amounts of cash because of their high growth rate; therefore the cash in each
direction approximately nets out. If a star can maintain its large market share, it will become a
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cash cow when the market growth rate declines. The portfolio of a diversified company always
should have stars that will become the next cash cows and ensure future cash generation.
Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater
than the market growth rate, and thus generate more cash than they consume. Such business units
should be "milked", extracting the profits and investing as little cash as possible. Cash cows
provide the cash required to turn question marks into market leaders, to cover the administrative
costs of the company, to fund research and development, to service the corporate debt, and to pay
dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value
can be determined with reasonable accuracy by calculating the present value of its cash stream
using a discounted cash flow analysis.
Under the growth-share matrix model, as an industry matures and its growth rate declines, a
business unit will become either a cash cow or a dog, determined soley by whether it had become
the market leader during the period of high growth.
While originally developed as a model for resource allocation among the various business units
in a corporation, the growth-share matrix also can be used for resource allocation among
products within a single business unit. Its simplicity is its strength - the relative positions of the
firm's entire business portfolio can be displayed in a single diagram.
Limitations
The growth-share matrix once was used widely, but has since faded from popularity as more
comprehensive models have been developed. Some of its weaknesses are:
Market growth rate is only one factor in industry attractiveness, and relative market share is only
one factor in competitive advantage. The growth-share matrix overlooks many other factors in
these two important determinants of profitability.
20
The framework assumes that each business unit is independent of the others. In some cases, a
business unit that is a "dog" may be helping other business units gain a competitive advantage.
The matrix depends heavily upon the breadth of the definition of the market. A business unit may
dominate its small niche, but have very low market share in the overall industry. In such a case,
the definition of the market can make the difference between a dog and a cash cow.
While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing
a corporation's business portfolio at a glance, and may serve as a starting point for discussing
resource allocation among strategic business units.
SWOT Analysis
SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. It is applicable to either the corporate level or the business unit level and frequently
appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths,
Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960's
by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in
Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric Growth
Council used this form of analysis in the 1980's. Because it concentrates on the issues that
potentially have the most impact, the SWOT analysis is useful when a very limited amount of
time is available to address a complex strategic situation. The following diagram shows how a
SWOT analysis fits into a strategic situation analysis.
21
SWOT Profile
The internal and external situation analysis can produce a large amount of information, much of
which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to
reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the
internal aspects of the company as strengths or weaknesses and the external situational factors as
opportunities or threats. Strengths can serve as a foundation for building a competitive
advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a
firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities,
and deter potentially devastating threats.
Internal Analysis
The internal analysis is a comprehensive evaluation of the internal environment's potential
strengths and weaknesses. Factors should be evaluated across the organization in areas such as:
Company culture
Company image
Organizational structure
Key staff
Access to natural resources
Position on the experience curve
Operational efficiency
Operational capacity
Brand awareness
Market share
Financial resources
Exclusive contracts
Patents and trade secrets
The SWOT analysis summarizes the internal factors of the firm as a list of strengths and
weaknesses.
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External Analysis
An opportunity is the chance to introduce a new product or service that can generate superior
returns. Opportunities can arise when changes occur in the external environment. Many of these
changes can be perceived as threats to the market position of existing products and may
necessitate a change in product specifications or the development of new products in order for
the firm to remain competitive. Changes in the external environment may be related to:
Customers
Competitors
Market trends
Suppliers
Partners
Social changes
New technology
Economic environment
Political and regulatory environment
The last four items in the above list are macro-environmental variables, and are addressed in a
PEST analysis.
The SWOT analysis summarizes the external environmental factors as a list of opportunities and
threats.
When the analysis has been completed, a SWOT profile can be generated and used as the basis
of goal setting, strategy formulation, and implementation. The completed SWOT profile
sometimes is arranged.
When formulating strategy, the interaction of the quadrants in the SWOT profile becomes
important. For example, the strengths can be leveraged to pursue opportunities and to avoid
threats, and managers can be alerted to weaknesses that might need to be overcome in order to
successfully pursue opportunities.
Strengths
1.
Weaknesses
1.
2.
2.
3.
23
Opportunities
Threats
1.
1.
2.
2.
3.
3.
Fig 5. SWOT profile
7S FRAMEWORK
It's all very well devising a strategy, but you have to be able to implement it if it's to do any good.
The Seven S Framework first appeared in "The Art Of Japanese Management" by Richard
24
Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been
so successful, at around the same time that Tom Peters and Robert Waterman were exploring
what made a company excellent. The Seven S model was born at a meeting of the four authors
in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was
taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known
as the McKinsey 7S model.
Managers, they said, need to take account of all seven of the factors to be sure of successful
implementation of a strategy - large or small. They're all interdependent, so if you fail to pay
proper attention to one of them, it can bring the others crashing down around you. Oh, and the
relative importance of each factor will vary over time, and you can't always tell how that's
changing. Like a lot of these models, there's a good dose of common sense in here, but the 7S
Framework is useful way of checking that you've covered all the bases. The Seven Factors are:
Fig 6. 7s Model
Strategy
Structure
Systems
All the processes and information flows that link the organisation together
Style
Staff
Superordinate Goals Longer-term vision, and all that values stuff, that shapes the destiny of the
organisation
25
Chapter 4.
Analysis
TVS Business Strategy
Senior Leadership
The leadership of TVS has been proactive in developing strategic management, envisioning
future direction of the firm, and being actively involved in internal development of associates,
managers, and staff. The five directors are all responsible for, promoting quality, motivation, and
improvement using quality tools, reviewing plans, competitive performance, goals and
objectives, education and training, customer and supplier relations.
Individual directors are responsible for overview and improvement of specific areas of activity,
such as finance and administration, office facilities, operations, research and development,
human resources, public relations and quality processes. They are very proud of their leadership
style, which includes high involvement, shared leadership, teamwork, and empowerment of
associates.
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Customer Focus
TVS consciously develops processes and plans to enhance customer focus. Directors encourage
associates to focus on the needs of the customer. Simultaneously, these efforts contribute to
accomplishing their strategy and making their vision materialise. Thus, the processes may been
seen as planned, deliberate, and integrated. They include
The vision of TVS focuses on three areas -- self, customers, and community. The company
developed the slogan, Success through service, in 1990. It later broadened its perspective to
include a customer and a community focus. They try to share it down very deep in the
organization. They have developed a company model that graphically integrates their vision and
the operational application of quality practices to every facet of the business. They are
consciously attempting to use operating systems, customer and associate feedback, and quality
improvement tools and techniques to provide an integrated approach to reaching their strategic
vision.
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Leadership
Star of Asia Award to Mr. Venu Srinivasan, CMD TVS Motor Company by Business Week
International.
Venu Srinivasan, Chairman and Managing Director, TVS Motor Company was Honoured with
Doctorate in Science by University of Warwick, United Kingdom
Engineering
The Deming Prize - TVS Motor Company is the only two-wheeler company in the world to
be awarded the worlds most prestigious and coveted recognition in Total Quality Management.
Technology Award 2002 from Ministry of Science, Government of India for the successful
commercialization of indigenous technology for TVS Victor
TPM Excellence Award - First category by Japan Institute of Plant Maintenance (JIPM)
Asian Network for Quality Award 2004 - TVS Scooty Pep won the prestigious
'Outstanding Design Excellence Award' from Business World and National Institute of Design
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Management
Emerging Corporate Giant in the Private Sector awarded by The Economic Times and the
Harvard Business School Association of India.
Best Managed Company award from Business Today, one of Indias leading business magazines.
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31
TVS-
STARCITY PROFILE
The unique selling proposition of TVS Star City is its feather-like weight. So be very confident,
that once you have it by your side, like a swashbuckling lover you can easily sweep your female
off her feet. The other alluring facets of the bike involve the power economy indicator: This
actually serves the purpose of a tachometer as the indicator is based on the rpm and not the
speed. Take a sneak-peak into the other benefiting aspects of the bike.
Looks
Ride switch
Intelligent speedometer
Control
Electric start
Headlight reflectors
Comfort
Electric start
34
M
G
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R
L
P
D
IA
S
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ra
is
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e
o
b
g
rfy
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e
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ia
c
e
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o
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h
s
o
g
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a
to
rn
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y
a
S
lrh
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itp
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35
2. DEMOGRAPHIC SEGMENTATION: TVS motors have segmented their twowheeler bikes on the basis of age, sex, income.
a. AGE: TVS motors have divided the two wheelers on the basis of age.ie, Teenage
consumers and middle age consumers. TVs-motors introduces TVs Suzuki, victor etc for the
middle age consumers. TVs starcity,flame,apache ftr etc.for the teenage consumers.
36
b. SEX: TVs-motors has segmented bikes and scooteries on the basis of sex.ie; maleconsumers and female-consumers.tvs motors has launched TVS victor, Apache, starcity,flam
etc.for the male consumers. Were as TVS motors has launched Tvs scooty,scooty pep,scooty
streak etc. for the female consumers.
c. INCOME: TVS MOTORS has segmented their two-wheelers on the basis of
income.ie; middle income group and higher income group.Tvs has charged reasonable value for
their bikes and scooteries which middle income group consumers and higher income group
consumer will easily afford.
PRODUCT
PRICE
PROMOTION
PLACE
37
1. Product:- Tvs has given a great important to their products that is there bikes motorcycles
etc. in product Tvs has recommended or contained some of the important factors in their
products they are as follows:
Tvs has a great line and range in bikes such as star city, apache,flame, victor, etc.tvs has also
maintained a better quality in bikes and scooteris.they provide best quality bikes to the consumer.
Tvs two wheelers also consider stylish shape, size, design in there products. Brand name and
logo are marked on each and every product. Tvs also provide better after sale service.
2. Price:- Prices is the exchange value of product TVS has also consider price as an
important marketing concept for the company. The price which contains:
As Tvs is the third largest automobile company in India, so they give much more focus on the
price of these two wheelers. Tvs has charged very reasonable price for their bikes as compared to
other competitive products.
TWO-WHEELERS
TVS STARCITY
HERO-HONDA SPLENDER
BAJAJ PULSAR
YAMAHA
PRICE
42000-45000
50000-62000
50000-55000
53000-57000
38
From the schedule we see that TVS Starcity has a reasonable price other than hero Honda,
Yamaha, bajaj.
Every public and private bank provides two wheeler loans for the purpose of purchasing two
wheeler which help the consumers for getting the better financial facility.
TVS has provide a Installment facility to the customer by just paying the money as a down
payment
3. Promotion: - Promotion means to inform consumers about the product and to provide them
to buy product.
Today every company go for promoting, marketing the product in a national and international
market.TVS MOTORS has considered the promotion as a key factor for promoting the products
and services.
TVS promote their product by taking the support from mass-media communication.tvs advertises
their products on television, radio etc.
39
Tvs also maintain a good public relation by giving press release in newspaper.tvs disclose their
balance sheet, current-turnover, sales etc. in newspaper, magazines etc. TVs also go for sales
promotion by giving accessories with TVs products.
TVs hires marketing experts and consultants to promote and sale the product in a market. This
results in direct marketing done by TVS motors.
4. Place: - Place is also being considered as an important marketing mix. TVs has focused on
the place of distribution.
Place contains the following factors:
Distribution channels
Transports
Company-Dealer relation
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1) SPONSORSHIP IN EVENTS
TVS has sponsored India- Srilanka TVS CUP in 2004-05.By sponsoring, TVS has earned huge
surplus in 04-05.TVS has targeted this sport events as people give more importance to sports
TVS has done a huge advertisement in that period. The result gets in terms of decent demand
from public for TVS two-wheelers.
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4) MAINTAINANCE OF TQM
TVs still using the maintenance of total quality management in each and every two-wheeler.
Such maintenance of TQM is modifying the bikes in such a way that the stylish model, newdesign, new shape, size, colour etc.due to this consumer will eager to buy TVs two-wheelers.
5) CUSTOMER-SATISFACTION
Tvs has focused on the aspects of customer satisfaction. TVs has taken up the charge to satisfy
each and every customers by providing correct and proper information of the two-wheelers.by
providing a good quality two-wheelers, clarification of positive and negative points of twowheelers, correct price charged for the customers, after sales service etc.which results in trust and
faithful response from the customers towards the TVS.
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43
Chapter 5
Conclusion
TVS is an organization that is full of contradictions. It has a strong TQM philosophy in
an environment where that is going out of style. It is highly dependent on motivating its
professional staff, yet it cannot settle on a consistent way to do so. It seeks to be innovative and
sell customers on the need for sustainable environmental practices, but cannot profitably do so.
It has brought in associates and inducted them into the practices of using the systems and
procedures it has developed for cost analysis and control, but still struggles with issues of
teamwork, empowerment and organisational governance. However, TVS approach has helped
make the organisation a profitable leader in a field where the old norm has been cost plus a
profit for markup and where the boom or bust environment means that less agile firms have
gone bust. Although it may need some fine tuning for some of its management and quality
systems, TVS is a generally healthy organization with an excellent outlook.
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Bibliography
Marketing management reference books
Webliography
www.google.com
www.wikipedia.com
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