A STUDY AND RECOMMENDATION OF MARKETING STRATEGY FOR TWO WHEELER STARTER PRODUCED BY LUCAS-TVS

ARUNPRASATH.R.M (10MBR012)
II MBA DEPARTMENT OF MANAGEMENT STUDIES KONGU ENGINEERING COLLEGE PERUNDURAI

AUTOMOBILE INDUSTRY- AN OVERVIEW

INDUSTRY PROFILE (AUTOMOBILE INDUSTRY)

Automobile, which is a self propelled vehicle used primarily on public roads but adaptable to other surfaces. Automobiles changed the world during 20th century, particularly in US and other industrialized nations. The key elements of industrial economies are the manufacturing, sales and servicing of automobiles. Along with job creation and greater mobility, automobile has brought noise and air pollution. Automobile accidents rank as the leading cause of death and injury throughout the world. Automobiles can be classified by size, style, number of doors, and intended use. The typical automobile, called car, auto, motorcar, and passenger car, has four wheels and can carry up to six people. Larger vehicles are designed to carry more passengers are called vans, minivans, omnibuses, or buses. Depending on their size and design, those which are used to carry cargo are called pickups or trucks. Sport-utility vehicles, also known as SUVs, are more rugged than passenger cars and are designed for driving in mud or snow. In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S. A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distances. ELECTRIC STARTER Charles Ketterings invention of the electric starter in 1912, turned the process of starting automobiles more faster and easier at the same time, doing away with the hand tools. Crude oil being discovered in Texas, the automobiles driven by engines that ran on gasoline became even more affordable, as the prices of gasoline reduced. The prices of electric automobiles were going through a constant rise, in spite of the fact that these were less efficient than the gasoline

automobiles. Jean Joseph tienne Lenoir was the first to invent an internal combustion engine that ran on petroleum and attached it to a three-wheeled carriage, and successfully traversed a distance of fifty miles in 1863.Karl Benz manufactured the first automobile ( a three-wheeled car) that was affordable and compatible for travelling over long distances for its internal combustion engine that ran on gas, in 1886.Later in 1887, Gottlieb Daimler was the first to invent the predecessor of the modern automobile with an engine that had a vertical cylinder in addition to a gasoline driven carburetor. First building a two-wheeled automobile (Reitwagen), Daimler was again the first to build a four-wheeled automobile in 1886. The engines manufactured by Daimler were improved upon and these portable and fast engines made automobiles the way we see them today. The advanced engines turned the slow, expensive automobiles of the yesteryears, a thing of the past, and cars became more affordable as both the prices of gasoline and petroleum as well as the manufacturing costs reduced through their mass manufacture at the assembly lines of factories. Penhard and Levassor in 1889, and Peugeot in 1991 became the earliest mass manufacturers of the modern automobiles. At present, Indian automobile industry is making a major contribution in increasing the countrys GDP by 9% every year. New heights have been scaled by the industry in the year 2010.In January 2010, total automobile sales in the domestic market reached 11,14,157 units, this shows an increment of 44.9% compared to the sales units of 7,68,698 of same period last year. Even for the month of April-October after a gap of 11 years, total automobile sales in India stood at 1,120,081 Units. Annually, the Indian automobile industry is growing at an average rate of 30% and marking itself as one of the fastest growing industries in India. According to the reports of Society of Indian Automobile Manufacturers (SIAM), annual car sales are estimated to reach5 million vehicles by 2015 and more than 9 million by 2020. New York Times reports, several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki have expanded their manufacturing facilities owing to Indias strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars. Some of the statistics for the Automobile Industry are, at present, India is The second largest market for two & three wheelers after China. India along with China is the largest manufacturers in the world in the production of tractors.

 The subcontinent stands as the 4th largest producer of trucks in the world. Our country is positioned 11th in car production in the world in passenger car segment. In India car penetration per 1000 is only 7 compared to 500 in Germany. India will become the worlds third largest automobile market by 2030, behind just China and the US. (Forecasted by US-based consultancy Keystone-a subsidiary of LaSalle Consulting Associates)

MAJOR PLAYERS OF THE AUTOMOBILE INDUSTRY IN INDIA

The largest manufacturers in each segment within the automobile industry in India are given in the Table 1. Car Market Maruti Suzuki Hyundai Motors Tata Motors Mahindra & Mahindra Hindustan Motors Honda siel cars India Ltd Fiat India Pvt Ltd Reva Electric Car Co General Motors Ford India Ltd Toyota Kirloskar Motor Ltd Skoda Auto India Private Ltd Table 1: Major players of the automobile industry in India Ashok Leyland Eicher Motor Ltd Tata Motors Swaraj Enterprise Force Motor Heavy Vehicles Market

GLOBAL SCENARIO
Over the years, the industry has grown significantly to become as one of the well-established industries all over the world. The global automotive industry has been evolving through different phases characterized by its own developments. Over a period of time, the industry has witnessed several ups and downs, only to emerge stronger and better equipped to take on the challenges. General Motors, established in 1908 in Michigan, USA is almost completing a century of operation. Later, it was Henry Ford, who in the year 1914 endeavored in the mass production of cars, reducing the costs of manufacturing. In fact, these two companies are considered to be the pioneers in the automobile industry for bringing in innovation and setting high standards in the industry. In 2007, a total of 79.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and other parts of Asia grew strongly. Of the major markets, China, Russia, Brazil and India saw the most rapid growth. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly [SIAM India Society of Indian Automobile Manufacturers]. The numbers are increasing rapidly, especially in China. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars. The sustainable transport movement focuses on solutions to these problems.

INDIAN SCENARIO
India is emerging as a source of high value and advanced quality engineering products and services for multinational companies. India is set to emerge not only as a large domestic market for automotive manufacturers, but also as a crucial link in the global automotive chain. Among other industries, the automotive industry in India is understood to be the most dynamic. It has been experiencing strong growth rates after de-licensing of the industry in 1991, when major economic reforms took place in India. SIZE OF THE INDUSTRY The automotive industry is one of the largest industries in India and is of high strategic importance to the Indian manufacturing sector overall. The industry has been growing at a fast and steady pace over the past five years registering a CAGR of 17 per cent. According to the Indian Brand Equity Foundation (IBEF), India is envisaged to be the third largest automobile market in the world by 2030 only behind USA and China. Given below are some of the key features of the automotive industry in India, Fourth largest market for passenger cars in Asia Second largest manufacturer of two-wheelers worldwide Fifth largest manufacturer of commercial vehicles worldwide Largest manufacturer of tractors and three-wheelers worldwide The table 3 depicts about the market share for the year 2010-11 according to the category. We can clearly see that more than 75% of the market share is held by the two-wheeler category. Market Share Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers 16.25% 4.36% 3.39% 76% Table 2: The domestic market share 2010-11

COMPANY PROFILE

COMPANY PROFILE
Lucas - TVS was set up in 1961 as a joint venture of Lucas Industries plc., UK and T V Sundaram Iyengar & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas Industries of the UK and the Varity Corporation of the US in September 1996. The co m p a n y d e s i g n s , m a n u f a c t u r e s a n d s u p p l i e s a d v a n c e d t e c h n o l o g y s ys t e m s , p r o d u c t s a n d services to the worlds automotive, after market, diesel engine and aerospace industries. The combination of these two well-known groups has resulted in the establishment of company, which has had a successful track record of sustained growth over the last threedecades.TVS is one of India's twenty large industrial houses with twenty-five manufacturing c o m p a n i e s a n d a t u r n o v e r i n e x c e s s o f U S $ 1 . 3 b i l l i o n . T h e t u r n o v e r o f Lu c a s - T V S a n d i t s divisions is US$ 233 million during 2003-2004.Incorporating the strengths of Lucas UK and the TVS Group, Lucas TVS has emerged as o n e o f t h e f o r e m o s t l e a d e r s i n t h e a u t o m o t i v e i n d u s t r y t o d a y. L u c a s T V S r e a c h e s o u t t o a l l segments of the automotive industry such as passenger cars, commercial vehicles, tractors, jeeps two-wheelers and off-highway vehicles as well as for stationary and marine applications. With the automobile industry in India currently undergoing phenomenal changes, Lucas-TVS, with its excellent facilities, is fully equipped to meet the challenges of tomorrow.

MISSION AND VISION Mission

To be a respected supplier in the global auto industry, by developing innovative products and solutions of value to customers through creative skills and involvement of employees, suppliers and dealers and use of contemporary technology.

Vision
o Dominant supplier to all leading vehicle manufacturers in India. o Strong presence in select NICHE market. o Recognized supplier to vehicle / Engine manufacturers in Europe for Starters, Alternators and small Motors. o By 2015, reach Sales turnover of 3500 Crore (USD 770 Million) with a third being export sales.
o

Customer delight and stake-holders pride will form the basis of our activities.

PRODUCTS
Lucas-TVS Manufactures the most comprehensive range of auto electrical components in the country. A range which continues to set standards in the industry. The products are designed to meet the demands of vehicle manufacturers both in India and worldwide. With the emission standards in In d i a becoming

i n c r e a s i n g l y s t r i n ge n t , Lu c a s - T V S h a v e e n s u r e d t h a t e a c h o f i t s products is manufactured to meet global standard. List of Products Manufactured o Starter motors o Alternator o Wiper motors o Blower/Fan motors o Small Motors o Ignition

ACHIEVEMENTS
Lucas-TVS, a TVS group company, has bagged the prestigious Deming Application Award for t h e ye a r 2 0 0 4 . T h i s w a s a n n o u n c e d b y t h e D e m i n g P r i z e C o m m i t t e e o f J a p a n e s e U n i o n o f Scientists and Engineers (JUSE).

DIVISIONS
Lucas TVS has grown hand in hand with the automobile industry in the country. The company's policies have recognized the need to respond effectively to changing customer needs, helping to propel it to a position of leadership. The company has raised its standards on quality, productivity, reliability and flexibility by channeling its interests. At present, there are five divisions: 1. Auto Electricals L-TVS 2. Fuel Injection Equipment (FIE) - DTVS 3. Electronic Ignition Systems (INEL) 4. Automotive Lighting (IJL) 5. After Market Operations (LIS)

PEOPLE
Human resource is an asset never disclosed in a companys balance sheet. They at Lucas-TVS strongly believe that an organizations most valued assets are its people who individually and collectively contribute to the achievement of the objectives of the business. Keeping this in mind, Lucas-TVSs management style lays great emphasis on employee involvement and actively encourages participation and commitment through Small Group Activities (SGA), Suggestion Schemes, Voluntary Work Teams and the like.

CULTURE
A highly visible culture of Commitment, backed up by Discipline & Positive Attitude prevails across the organization. They believe in the following equation: Employee Performance = (Knowledge + skill) * Will Trust, Value, and Service are the key words and beliefs practiced always internally and externally. Openness and transparency are seen in leadership styles/ meetings. Internal customer-Supplier equations are extremely strong. SOP (Standard Operating Procedure-shop floor) &SWP (Standard Work Procedure-office areas) are base points of DRM in line and staff functional departments. TEI (Total Employee Involvement) is the foundation of the organization. Learning culture prevails at all times and all places in the company. 5S is the first

step in every function. Approach and outlook of engineers / managers is always bi-focal (short term and long term). PDCA is the belief and the Continuous improvement is the driver of growth. Systems and procedures are always put in place in reality to recognize an orderly workflow. Performance culture is encouraged and visible results are rewarded. Customer, economy in operations and Gemba are the basics of business culture. They take care of their employees and they in turn take care of our customers.

EDUCATION AND DEVELOPMENT

Human Potential is vast and requires the right amount of inputs to be utilized satisfactorily. Keeping this in mind, they invest significantly in upgrading our employees and their potential. Training, Skill-building & Career Development are given primary importance as they all lead to all round development. Beyond all this, On the Job Training and Job Rotation are also practiced extensively to hone the skills of our employees. Company operates a fully equipped training center, which features a multi-skill workshop, a product knowledge center, a CNC trainer and computer facilities. Individual skills are fine-tuned through specialized courses, both within the country and abroad. Lucas TVS employees in every part of India share ideas and learn from each other every day. This rich diversity and cultural experience come together to inspire new technologies, design ideas that meet the needs of all our customers.

KAIZEN CULTURE
The word Kaizen originates from the Japanese language. Kai means change and zen means better. Anything that is improved form the existing level can be termed as Kaizen. From the industry perspective, the Kaizens can generally be classified into 3 levels, namely simple and first level Kaizens, medium level and high level Kaizens, which are innovations or breakthrough improvements. In a nutshell, Kaizen is a way of life in Lucas-TVS at all levels of functions for sustaining the existing standards of performance and continually improving the standards for better to cope up with ever increasing customer expectations and business competitiveness. As a part of TPM implementation, they have created Kaizen circles. The circles focus on Kaizens in line with those nine pillars. Periodical reviews are being conducted Pillar wise and the Kaizen

done in each pillar are explained to all and this way the Kaizen culture is implemented in all the departments.

CUSTOMERS
Cars/Utility vehicle

LCVs/CVs

Tractors

Earth movers

Two/ Three Wheelers

EXPORTS

AWARDS
Lucas-TVS, believes that quality begins and ends with the customer. This means identifying customer needs and comprehensively meeting them. For the company, quality is not just conformance to drawings or specifications but ensuring customer satisfaction. 1) II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS - 2008 Automotive sector Ministry of Power, Govt. of India 2) TATA CUMMINS Lucas-TVS is Awarded "OUTSTANDING SUPPLIER & EXCELLENCE PERFORMANCE during the year 2007 by CUMMINS INDIA LIMITED 3) Deming Application prize JUSE, Japan 4) Best Supplier Award Maruti Udyog 5) 100 PPM Award Hyundai motor India 6) Q1 Award from Ford

Lucas-TVS Limited located in India provides:

Fig 1: Product range of Lucas TVS

PRODUCT PROFILE

PRODUCT PROFILE
STARTER MOTORS - Introduction Automobile self starter also known as starter motor or simply starter is an electric motor initiates rotational motion in an internal combustion engine before it can power itself. The electric starter ensures that anyone could easily start and run an internal combustion engine of any vehicle car. One of the important feature of these electric motors is a soft on/off electronic switch for easy operation. Automobile self starter or starter motor is known for flawless performance and high durability. These parts find application in trucks, tractors, cars, bikes and ATV of all models and makes. These starter motors are equipped with various high quality components made by renowned companies. These motors are highly dependable and economically priced. These are motors are capable to suit various applications. Working Starter Motor is instrumental for initial engine rotation. It consumes a large amount of battery current, which is also shared by other elements of the circuit. The common belief is that the current produced by battery gets distributed to the ignition system to start the engine instantaneously. However, it is not the case. Electric current can't set crankshaft in motion, as it bears a huge amount of pressure created in the combustion chambers. The starter motor uses the electric current produced by the battery and then performs its task of rotating the flywheel. The flywheel in rotation enables piston movement. Afterwards, the piston starts functioning independently only on the induction of combustible air and fuel mixtures. Due to a heavy build and constitution, the starter motor needs massive electricity from the battery. It houses internal working ancillaries like carbon brushes, rotating armature, field coil, etc. These components in coordination make engine rotation possible. Starter motor and its internal working parts are robust enough to withstand the negative thrust produced by the internal cylinder pressures on the piston. Motor starter is connected to the positive terminal of the battery through the solenoid switch. The solenoid switch is a transitional component, which facilitates metering of the incoming electric

current. The volume of current via solenoid to motor being massive, a large diameter wire is engaged for transportation of the electric current. The current starts flowing in the starting circuit when the ignition switch is turned on. Solenoid also enables movement of a lever, whose one end is connected to the solenoid and the other to the drive. Prior to starter motor working, the battery current is poured into the starter motor by the second terminal of the solenoid. This current is absorbed by the field coil and the carbon brushes. Permanent magnet strips are used in the construction of the field coil. Rotating armature in the form of copper windings is placed to encompass by the field coil. One end of the armature is inserted in a circular metal carbon-brush plate so that the metal portion of the armature made of copper rubs against the carbon brushes hinged on the base plate. The tip of the armature is fitted into a circular recess in the body of the starter motor. The whole procedure though seems to be overly lengthy. However, in practical reality, the entire circuit is completed within a fraction of second. All the inter-related functions happen so quick that one does not give a thought to the starter motor when a vehicle breaks down and instead the battery is blatantly put to blame. Type Electric Starter The modern starter motor is either a permanent magnet or a series/series-parallel wound direct current electric motor. A solenoid switch is mounted on it. When current from the battery is applied to the solenoid through a key-operated switch, it pushes out the drive pinion on the starter drive shaft and meshes the pinion with the ring gear on the flywheel of the engine. The solenoid also closes high-current contacts for the starter motor, which begins to turn. Once the engine starts, the key-operated switch is opened. A spring in the solenoid assembly pulls the pinion gear away from the ring gear. This yields the stopping of starter motor. The starter's pinion is clutched to its drive shaft through an overrunning sprag clutch, which permits the pinion to transmit drive in only one direction. This way, drive is transmitted through the pinion to the flywheel ring gear, but if the pinion remains engaged, the pinion will spin independently of its drive shaft.

Gear-reduction Starters Gear-reduction starters are almost entirely obsolete owing to their larger size, heavier weight and higher current requirements. A direct-drive, movable pole shoe design are mainly used for cost reduction rather than electrical or mechanical benefits. This type of starter eliminated the solenoid, replacing it with a movable pole shoe and a separate starter relay. This starter operates as follows: o Operator closed the key-operated starting switch o A small electric current flowed through the starter relay coil, closing the contacts and sending a large current to the starter motor assembly o Pole shoes linked to the starter drive o Spring loaded away from its normal operating position, swung into position o Pinion gear to engage the flywheel ring gear o Closed a pair of heavy-duty contacts supplying current to the starter motor winding o The starter motor cranked the engine until it started. o Overrunning clutch in the pinion gear uncoupled the gear from the ring gear o Operator released the key-operated starting switch, cutting power to the starter motor assembly Pneumatic Starter Some gas turbine engines and Diesel engines (from trucks and earth moving equipment) use pneumatic starters. These starters consist of a geared turbine, an air compressor and a pressure tank. Compressed air released from the tank is used to spin the turbine. Apart from it, a set of reduction gears engages the ring gear on the flywheel. The engine, once running, powers the compressor to recharge the tank. Another method uses additional valves in cylinder heads. Compressed air is let in the cylinders so that its pressure pushes pistons down when appropriate. At the upward piston movement, air is discharged through normal exhaust valves. Since large trucks typically use air brakes, the system does double duty, supplying compressed air to the brake system. Pneumatic starters have the advantages of delivering high torque, mechanical simplicity and reliability. They eliminate the need for oversized, heavy storage batteries in prime mover electrical systems.

REVIEW OF LITERATURE

REVIEW OF LITERATURE STRATEGIES FOR AUTOMOBILE INDUSTRY

Sumit Jain Dr. R.K.Garg

Abstract Peter Drucker has called the automobile industry as "the industry of industries". During the last few years, the production and management systems have been revolutionized worldwide in the automobile industry. One of the major changes in the industry has been the opening up and growth of several emerging markets. The automotive industry is now facing new and pressing challenges. Globalization, individualizations, digitalization and increasing competition are changing the face of the industry. In addition, increasing safety requirements and voluntary environmental commitments have also contributed to the changes ahead. Size of the organization is no longer a guarantee of success. Only those companies that find new ways to create value may prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and highlight challenges facing the industry. Based on this perspective, some strategic methodology which enabling them to transform into competitive enterprises has been discussed. The information and opinions presented in this paper are based on a series of interviews that held with automotive industry experts, who gave us the benefit of their extensive knowledge.

Keywords: Globalization, competitiveness, success, environment

Introduction The automotive industry is facing new and pressing challenges. Globalization,

individualizations, digitalization and increasing competition are pressing the face of the industry. In addition, increasing safety requirements and voluntary environmental commitments by the automotive industry have also contributed to the changes ahead. Size is no longer a guarantee of success. Only those companies that find new ways to create value will prosper in the future. The purpose of this paper is to present a short overview of the automotive industry today and

highlight challenges facing the industry. Based on this perspective, some strategic methodology which enabling them to transform themselves for the competition.

The evolving automotive landscape The global automotive industry is subjected to a range of factors that are increasing complexity and influencing the economic options available to automobile manufacturers. The majority of these factors interacts with one another and has strong interdependencies. However, some of these factors are market-induced and, consequently, cannot be influenced directly by the automobile manufacturers. These factors include: Globalization, regionalization and market convergence Due to the effects of liberalization, national markets are increasingly globalized. This gives companies a chance to expand to new markets, but also increases the threat of new entrants or increased competition in traditional markets. Increasingly diversified consumer aggregate patterns of behavior Consumers are no longer accepting standardized products, but want products that satisfy their individual requirements. Target groups thus have to be downsized by companies so customers will be attracted by the products offered. However, because of the increased global competition with a stronger focus on price and not on brand loyalty, consumers generally do not reward companies for their more individualized products. As a result of these factors, automobile manufacturers have new demanding requirements within their field of activity. Accelerated modification and diversification of the product portfolio The companies have to shorten product lifecycles in order to react to the expectations of individualize and fast changing consumer demands with innovative products. In the past, an average product lifecycle in the automotive industry was eight years; today, lifecycles are much shorter, or at least the products design is often modified after just two or three years on the market. With development costs for a new model remaining on the same level or even increasing, this concurrently means a shortening of amortization time for the OEM and, potentially, lower profits. Pervasion of automobiles with digital technology In 2002, digital technology in cars already averaged 22 percent of the total value of a car, with a forecasted increase to 35 percent of the

total value in 2010. The integration of hardware and software into automobiles represents the predominant accelerator of increased functionality coupled with increasing complexity. This complexity results in overstrained car development departments, product failures, a cost explosion with respect to guarantee and warranty costs, and impact on customer satisfaction. Increased pressure for innovation and flexibility in development and manufacturing Development departments are not just overburdened by the complexity of digital technology, but also by the shortening of product lifecycles. Another aspect is the increasing number of parallel development projects since companies develop more and more niche models for special target groups. This certainly requires the use of new development techniques such as virtual reality. For example, this technique enabled BMW to shorten the development time of its Z4 model to just 30 months.

Strategic steps toward the competitive business Based on experience with the seven areas of strategic action, several conclusions can be drawn and recommendations are given for further action. The automotive industry has developed into a complex network of interrelations across the entire value system, where decisions at any level often impact various other levels. Integration with customers, for example, affects not only sales but also product development or expansion into new markets. Therefore, increased business and cost efficiency can result from focusing on ones own core competencies and strengths. Vehicle manufacturers must define and focus on those features and characteristics that differentiate them from competitors and outsource those non-core design, manufacturing, supply, marketing and administration tasks that can be better handled by suppliers. The integration of strategic partners with more responsibility into the value chain should be intensified. By doing so, the supplier interaction, organization, process and IT are addressed. SRM has to be supported by collaborative engineering, pay-on-supply, risk-sharing models and alignment of the suppliers QM. On demand CRM requires a seamless, single view of the customer with consistent crosschannel interaction models. Therefore, we recommend that companies bundle all internal CRM strategies into one comprehensive multi-channel strategy. On this basis, customer data can be systematically gathered and evaluated for later use at multi-channel customer touch-points from dealership to profitable value-add activities, such as financial services. The selective use of

comprehensive customer data will drive more personalized communication and thus help increase both customer loyalty and customer sales.

To increase loyalty even further, companies should create customer awareness and build or defend a strong brand image that rightly balances the brands cognitive and emotional aspects. If they integrate CRM with SCM, then product design and production planning can be aligned with the customer information available. Dealers will remain the most important customer touchpoint. To enhance dealers efficiency and service, OEMs can streamline channel orders processes and warranty claims through coherent dealer management systems and simplify dealer access to content, applications, people and processes. Therefore, opportunities must be identified on demand with improved data analysis and insights. And, once in the market, supplier and dealer networks have to be developed with reliable local partners. For their integration, vehicle manufacturers have to install virtualized learning solutions and increase communication solutions. This requires technologically consolidated, virtual and local applications and infrastructure management consistent with the internal standards. Where development cycles and the final product do not conform to increasingly complex market requirements, product development parameters for cost, quality, time-to-market and processes have to be optimized. A set of coordinated actions will help improve efficiency, quality and cost. Companies design departments should be very responsive by using collaborative tools that define and control standardized processes and distribute knowledge. These tools should also feed lessons learned from manufacturing and service into reliability, design failure and diagnostic models. Web-based design, simulation, tooling, virtualized testing and product lifecycle management capabilities all need to be built on a common infrastructure. Where design centers are globally distributed and collaborative engineering works across company borders, those will need a real time system for tracking, managing and communicating engineering changes and defects. Since automotive electronics and software are influencing product development, quality, core competency and brand management alike, the respective actions recommended above also pertain to automotive E/E and software. Successful software management is the entry gate to innovation, one of the main market differentiators. Open

standards contribute to more reliable functions, allowing company and suppliers to develop their applications based on a standard architecture and platform. Thus companies should acquire and set up architecture and integration competencies in embedded systems lifecycle management. This help enables definition, organization and implementation of a standardized software development and tracking process. This enlargement of internal capacities will allow the specification of requirements, effective outsourcing and surveillance of partners design processes, and exertion of integration competency. In addition, manufacturers should separate software from hardware to develop a software release policy that helps them control both product quality and innovation flow. With all these activities, organization can use the extensive opportunities of automotive digitalization for innovation and quality enhancement. Vehicle manufacturers have realized that the interconnectedness of business design and technology capabilities is making businesses more focused, responsive, variable and resilient. It is anticipated that managing the seven areas of strategic action depicted here, they will successfully move forward to strategic excellence. By focusing on these seven strategic levers, automobile manufacturers will increase their potential to successfully cope with the challenges of globalization, individualization, digitalization and increasing competition. Conclusion Todays tough challenges in the automotive industry require to find new ways to create value if they are to prosper. To successfully adapt these levers companies will be able to respond to changes with focus, responsiveness, variability and resilience.

References 1 Mercer Management Consulting/Marco Ehmer, 2002: Automobiltechnologie 2010. http://www.vectorinformatik.com/ongress/VeCo_Vortrag04_Ehmer.pdf. Recall: May 10, 2004. 2 Strikt nach 30-Monats-Plan. Automobil-Produktion. 2003 (4). 3 Benchmark personalization and CRM integration 2003. IBM Business Consulting Services. 2003. 4 Universitt Bamberg / FAW Forschungsstelle Automobilwirtschaft 2003: Supplier Satisfaction Index 2003. 5 Global production summary by country. CSM Worldwide. 2004. http://www.csmauto.com/forecast.

RESEARCH METHODOLOGY

PROBLEM STATEMENT
The main problem of the company as of now is, the starter products havent reached the sales as the other products. Their expectation of increase in sales was purely because of their brand name. The issues/concerns faced by Lucas-TVS in the sales of starters have to be identified and marketing strategy for increasing the sales of their starter products

OBJECTIVES:
The Main objective is to study and recommend the marketing strategy for two wheeler starter produced by Lucas-TVS. The other objectives of study are: 1) To identify the issues/concerns faced by Lucas-TVS in the sales of starters. 2) To analyse the significant difference in opinions given by dealers and mechanics. 3) To identify the promotional strategy for increasing the sales.

RESEARCH METHODOLGY
The methodology of the study would include conducting research with target audience as the dealers and mechanics. This includes primary data collection by person administered survey for analysis and final interpretation of data. Descriptive research is undertaken in this study to obtain answer to questions of who, what, where, when, and how. Descriptive research is also desirable when we wish to project a studys findings to a larger population. If a descriptive studys sample is representative, the findings may be used to predict some variable of interest, such as sales.

SOURCE OF DATA
The two main sources of data are primary data and secondary data. PRIMARY DATA: Primary data is a term for data collected on source which has not been subjected to processing or any other manipulation. Here the questionnaire is considered as the primary data, from this questionnaire the opinions of various people is known.

Data collection methods in questionnaire are, o Dichotomous form (yes or no). o Multiple choice questions. o Ranking based questions. o Scaling based questions. o Open ended questions i.e., inviting free response. SECONDARY DATA: Secondary data is data collected by someone other than the user. The sources of secondary data include company details, surveys, and organizational records.

SAMPLING PLAN: The study was conducted as convenient sampling. The areas in my survey constitute of Chennai city (Ambattur, Nungambakkam, Pudupet and GP Road). The sample size comes around 125. Dealers 75 Mechanics 50 Table 3: Sampling plan The table gives the detailed information about the sample size of the survey being conducted. SAMPLING TECHNIQUE: Convenience sampling is a non-probability sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. The subjects are selected just because they are easiest to recruit for the study and the researcher did not consider selecting subjects that are representative of the entire population. TOTAL 125

TOOLS USED FOR DATA COLLECTION:

The main tool that is being used for the data collection is questionnaire. The questionnaire was developed after getting in depth knowledge about the given topic from various people from Chennai area. STATISTICAL TOOL USED: The role of statistics in research is to finish a tool in designing research, analyzing its data and drawing conclusions there from. As well as know that a researcher cannot ignore the science of statistics. Tools used in the study are as follow. PERCENTAGE ANALYSIS: This method is widely used to find the percentage of each of the attribute in the given question. This is helpful to estimate how many of the respondent support the attribute, t also clearly state the preference and non preference of the respondent. It is the easy method to find the respondent lakes and dislikes. Formula: Percentage = (No. of respondents/Total respondent)*100 CROSS TABULATION: Cross tabulation with simple percentage analysis is used in places where it is appropriate along with graphs.

LIMITATIONS OF THE STUDY:

o The study is based on assumption that all the responses given are true. o The study is based on the response obtained from the people in Chennai. It cannot be generalized for the whole country.

OBSERVATION & ANALYSIS

(QUESTIONNAIRE ANALYSIS)

SIMPLE PERCENTAGE ANALYSIS

1. Are you aware of starters produced by Lucas-TVS? Yes Dealers Mechanics 62 21 No 13 29

Table 4: Awareness about starters produced by Lucas-TVS Awareness about starters produced by Lucas-TVS
Dealers 83% 58% 42% 17% Mechanics

Yes

No

Fig 2: Awareness about starters produced by Lucas-TVS Inference: Dealers: From the figure we can infer that the awareness about the starter products among dealers is only 83% and not even reached 100%. This is because of their sales, which is mainly concerned only with the main retailers and not concerned about the small sized retailers. This implies that the company has to take some serious steps regarding advertisement of the product produced by Lucas-TVS. Mechanics: The figure also depicts that the awareness about the product among the main end users is itself very low. We can infer that the percentage of unknown users (58%) is more than the known users (42%). This implies that company has to take some serious steps for increasing their awareness about the product to end users.

2. Which brand would you prefer while purchasing starters? Lucas-TVS Dealers Mechanics 24 13 Varroc 8 5 Mitsubishi 29 23 Others 14 9

Table 5: Preference towards purchasing starters Preference towards purchasing starters

Dealers Mechanics 46% 39% 32% 26% 18% 11% 10% 18%

Lucas-TVS

Varroc

Mitsubishi

Others

Fig 3: Preference towards purchasing starters Inference: Dealers: From the figure we can recognize Mitsubishi that dominates the market share with 39% of total purchase. We can also infer that the purchasing of Lucas-TVS brand by dealers is very low in some areas. This indicates that some serious strategies should be adopted as soon as possible to gain market share in this competitive market. Mechanics: The figure depicts that the customers are more attached towards Mitsubishi brand and gets the majority of the market share with 46%. We can also infer that the purchasing of LucasTVS brand by mechanics is low. This indicates that important strategies should be adopted by marketing department as soon as possible to gain the market share in this competitive market.

3. Why do you prefer that brand? Brand name Quality Customer Preference Dealers Mechanics 7 2 20 21 35 24 12 1 3 Awareness Profit Margin Others

Table 6: Reasons for preferring that brand Reason for preferring that brand
Dealers 42% 27% 9% 16% 4% Quality Customer Preference 0 0% 0% 1% 6% 47% 48% Mechanics

Brand name

Awareness Profit Margin

Others

Fig 4: Reasons for preferring that brand Inference: Dealers: From the figure we can recognize that the purchasing power of the particular brand mainly depends up on the customer preference. Customer preference gains the majority of the share with 47%. Besides the customer preference the dealer also prefers quality and profit margin for purchasing the particular brand. Mechanics: The figure depicts that most of the mechanic is mainly concerned about the customer preference. Next to customer preference is quality of the brand. Brand name is not preferred mostly by mechanics while choosing a particular product/brand.

4) Which factor influences customer to purchase starters? Brand name Dealers Mechanics 4 Price factor 21 5 Quality 45 37 Awareness 5 8 Others -

Table 7: Opinion on factors influencing customers on purchasing starters Opinion on factors influencing customers on purchasing starters
Dealers 60% 28% 5% 0 10% Price factor Quality 7% 16% 0 0 Mechanics 74%

Brand name

Awareness

Others

Fig 5: Opinion on factors influencing customers on purchasing starters Inference: Dealers: In this data analysis the customer is mechanic most of the times. We can infer that the mechanic / customer give more preference to quality 60% rather than price factor 28%. The mechanic / customer give least preference to awareness and brand name. Mechanics: In this data analysis the customer is the owner of the particular vehicle. From the figure we can infer that the end users prefer quality and awareness about the particular brand name for purchasing starters. We can recognize almost 74% of the customers give preference to quality and only 10% of the customers give preference to the price factor of the particular product. the picture also depicts that the second factor but most significant factor that influence the purchasing behaviour is awareness about the particular brand.

5) Are you satisfied with the Price range of Lucas-TVS products? Yes Dealers Mechanics 29 10 No 46 40

Table 8: Opinion about price range of Lucas-TVS products Opinion about price range of Lucas-TVS products
Dealers Mechanics 80% 61% 39% 20%

Yes

No

Fig 6: Opinion about price range of Lucas-TVS products Inference: Dealers: From the figure we can infer that only 38% of dealers are satisfied with the price range of the Lucas-TVS products. This is because of their sales, which is mainly concerned only with the main retailers and not concerned about the small sized retailers. Mechanics: From the figure we can infer that 80% of the customers (Mechanics) are not satisfied with the price range of Lucas-TVS products. This implies that the company has to take some serious steps regarding price range of the products produced by Lucas-TVS (concerning small sized retailers and small customers).

6) What is your priority given while purchasing starters? Inference: The data is been analyzed in the excel sheet and the excel sheet is attached with this document. The results from analyzed results are depicted below, Dealers: The total survey consists of 75 dealers. The priority is been calculated by the least count method. The dealers have given more priority to the customer preference. Next to that preference the quality factor is given more priority. This is followed by profit margin, brand name, and last to the promotional schemes. Mechanics: The total survey consists of 50 mechanics. The mechanics have given more priority to the quality. Next to that preference the customer preference factor is given more priority. This is followed by making profit, brand name and at last to promotional schemes.

7) Have you purchased Lucas-TVS starters? Yes Dealers Mechanics 45 17 Table 9: Purchase of Lucas-TVS starters Purchase of Lucas-TVS starters
Dealers 60% 34% 40% Mechanics 66%

No 30 33

Yes

No

Fig 7: Purchase of Lucas-TVS starters Inference: Dealers: From the figure we can recognize that the purchasing power of starters by dealers is about 60% only. This is mainly because of less customer preference given to the particular product. Another main reason for this reduced percentage is the fear of inventory being created if there is no customer preference towards the product. Lack of awareness about the product is also another reason. Mechanics: The figure shows that the purchasing of starters in Lucas-TVS is just 34%. The reason for this lower percentage of purchase by mechanic is mainly due to lack of awareness of the product. Another main reason is the unavailability of the product in most of the retailer shop.

8) What is your opinion about the usage of Lucas TVS starters? The table provides you the list of users who has purchased the Lucas-TVS starters. The users referred here are both dealers and mechanic. As per the survey only 45 dealers and 17 mechanics have purchased the product. So, their opinion is been figured by scaling method. We have used the scale of 5 to analyze the opinion about starter product. The data is been analyzed in the excel sheet and the excel sheet is attached with this document. Dealers: As per the survey 45 dealers have purchased the starters produced by Lucas-TVS. As per opinion given by them in the scale of 5, we can see that quality has got the least count. This depicts that the quality of the Lucas-TVS is almost very good. Next to the quality factor, we can find the availability factor has got the least counting. This infers that the opinion about the availability factor is good. The main factor that has to be noted here is the Fast Moving factor. This factor has got the maximum counting, which clearly indicates that its not preferred by most of the customer. Mechanics: As per the survey 17 mechanics have purchased and used the starters produced by LucasTVS. As per the opinion given by them, we can see that ease of fit has got the least counting. This indicates that they dont find any problem in fixing the starters in vehicle. Next to this, we can find the quality factor has got the least counting. This infers that the opinion about the quality is good. The Availability and Awareness factors have got the maximum counting, which clearly indicates that it lacks awareness and availability at shops. Inference: According to the opinion given by the dealers and mechanics, we can infer that the awareness factor to the end user is very worst. Because of this reason the customer preference towards the product will be very less. Since there is no much of customer preference the dealers are afraid of inventory being created in future. This is one of the important factors that have to be noted and rectified as soon as possible by increasing the awareness to the end user / mechanic.

9) What strikes your mind when you think of Lucas-TVS? Brand name Dealers 45 Quality 26 Profit Margin Others 4

Table 10: Lucas-TVS

Dealers 60%

35%

5% 0 Brand name Quality Profit Margin Others

Fig 8: Lucas-TVS

Inference: Dealers: From the figure we can recognize that the Brand name strikes first when they think of Lucas-TVS. Brand name gains majority of the share with 60%. Next to brand name is quality, with 35%.

10) What type of promotional activity would you like to get from Lucas-TVS? Providing Discounts Dealers Mechanics 33 Increasing Credit period Increasing Profit Margin 37 Coupons or Points 42 5 8 Others

Table 11: Promotional activity for Lucas-TVS

Promotional activity for Lucas-TVS

Dealers Mechanics 84% 44% 49% 16%

0 Providing Discounts

0 Coupons or Points

7%

Increasing Increasing Profit Credit period Margin

Others

Fig 9: Promotional activity for Lucas-TVS Inference: Dealers: As per the result, the dealers mainly suggest to increase their profit margin in the sales of starters. This suggestion by dealers is around 50%. 44% of dealers suggest providing discounts. Mechanics: As per the figure, the mechanics mainly suggest to provide coupons or points during the sales of starters. The suggestion for providing coupons is 84%. Some mechanic who provides the authorized service doesnt require any sorts of promotional activity for increasing the sales. Some of the mechanic gave other ideas like providing gifts according to their purchasing power per month.

11) Provide your ranking for Lucas-TVS based on its starter products? Excellent Dealers Mechanics Good 17 Fair 49 10 Poor 9 40

Table 12: Ranking based on starter products Ranking based on starter products
Dealers Mechanics 80% 65%

23% 0 0 Good 0

20%

12% Poor

Excellent

Fair

Fig 10: Ranking based on starter products Inference: Dealers: According to the figure we can infer that around 77% of dealers gave the ranking as fair and poor. This is purely because of the awareness created among the customers is very low. The awareness created also constitute only to some regular customer for the purpose of their sales. This clearly indicates that some advertisement strategy should be adopted by some means for creating proper awareness. Mechanics: The figure depicts that only 20% of the mechanics has voted fair for providing the ranking for starters produced by Lucas-TVS and 80% of mechanics has voted Poor. This is mainly because of awareness created for the product is very low towards the end customers and also because of lack of availability in all shops.

12) How often the company representatives visit you? Once in a month Dealers Mechanics 1 When needed 43 6 Never 31 44 Others -

Table 13: Visiting by company representative Visiting by Company representative

Dealers Mechanics 88%

57% 42% 12% 1% 0 When needed Never 0 0

Once in a month

Others

Fig 11: Visiting by company representative Inference: Dealers: The figure depicts that the company representative have visited only when they need to increase their sales. This answer by dealers is around 57%. The 41% of dealers says that the company representative have never visited them. This clearly indicates that there is no proper relationship being maintained between the company and dealers. Mechanic: The figure depicts that the company representative have never visited their customers (mechanics). They have visited only 12% of customers when they need to increase their sales. This clearly indicates that there is no proper relationship being maintained between the company and mechanics.

13) What do you feel about after sales service provided by Lucas-TVS? Highly satisfied Dealers Mechanics Satisfied 15 5 Moderate 35 Neutral 19 10 Dissatisfied 6 35

Table 14: About after sales service provided by Lucas-TVS About after sales service provided by Lucas-TVS
Dealers Mechanics 70% 47% 20% 10% 0 0 Satisfied 0 Moderate Neutral Dissatisfied 25% 20% 8%

Highly satisfied

Fig 12: About after sales service provided by Lucas-TVS Inference: Dealers: From the figure it is clear that most of the dealers are not fully satisfied with after sales service provided by the company. This indicates that there is no proper relationship between the company and the dealers. Mechanics: From the figure it is clear that 70% of the mechanics are dissatisfied and only 10% of the mechanics are satisfied with the after sales service provided by Lucas-TVS. So the company should maintain a proper relationship with the mechanics in order to satisfy them.

SIGNIFICANCE TEST Significance test has to be done to check whether there is any significant difference in the opinion given by the people during the survey. Here, I am using independent chi-square test for checking whether there is any significant difference in the opinions between dealers and mechanics. CHI-SQUARE TEST Chi-square test is a statistical technique used to test significance in the analysis of frequency distribution. It is also used to determine whether there is significant difference between two populations. The calculated chi-square value is compared with the theoretical value, which is based upon your required level of certainty (perhaps you need to be at least 95% certain of the outcome) and the degrees of freedom present in the test. If the chi-square value is less than the theoretical value, you can state that there is no significant difference between two populations.

1) By the chi-square test, we have to analyze whether there is any significant difference in the opinion given by the dealers in terms of satisfaction with the price range of the Lucas TVS starter products. Null Hypothesis H0: 1 = 2 There is no significant difference between opinion given by dealers / mechanics in terms of satisfaction with the price range of the Lucas TVS starter products. Alternate Hypothesis Ha: 1 2 (1 < 2 or 1 > 2) There is a significant difference between opinion given by dealers / mechanics in terms of satisfaction with the price range of the Lucas TVS starter products.

DEALERS: Cross Tabulation

Are you satisfied with the price range of Lucas-TVS products? * Number of Years you have been in this automotive field? Count Number of Years you have been in this automotive field? Less than 5 yrs. Are you satisfied with the price Yes range of Lucas-TVS products? No Total 5 19 24 Between 5 to 10 Between 10 to 15 yrs. yrs. 15 23 38 9 4 13 Total 29 46 75

Table 15: Cross tabulation

Fig 13: Bar chart

CHI-SQUARE TESTS

Value Pearson Chi-Square 8.350a

df 2

Asymp. Sig. (2-sided) .015

Table 16: Chi-square tests.

Degree of Freedom Significant Level Table Value Calculated value

= = = =

2 Significant at 5% 5.991 8.350

At 95% confidence level and degree of freedom 2, the theoretical chi-square value is 5.991. Calculated chi-square value is 8.350, which is greater than the theoretical value. Hence the null hypothesis is rejected. That is there is significant difference in opinion given by the dealers on satisfaction with price range of Lucas TVS starter products.

MECHANICS: Cross Tabulation

Number of years you have been in this automotive field? * Are you satisfied with the price range of Lucas-TVS products? Count Are you satisfied with the price range of Lucas-TVS products? Yes Number of years you have Less than 5 years been in this automotive field? Between 5 to 10 years between 10 to 15 years More than 15 years Total 0 2 3 5 10 No 15 15 9 1 40 Total 15 17 12 6 50

Table 17: Cross tabulation

Fig 14: Bar chart

CHI-SQUARE TESTS

Value Pearson Chi-Square 19.700

a

df 3

Asymp. Sig. (2-sided) .000

Table 18: Chi-square tests

Degree of Freedom Significant Level Table Value Calculated value

= = = =

3 Significant at 5% 7.815 19.700

At 95% confidence level and degree of freedom 3, the theoretical chi-square value is 7.815. Calculated chi-square value is 19.70, which is greater than the theoretical value. Hence the null hypothesis is rejected. That is there is a significant difference between in opinion given by the mechanics on satisfaction with price range of Lucas TVS starter products.

2) By the chi-square test, we have to analyze whether there is any significant difference in the opinion given by the dealers and mechanics in terms of after sales service provided by the Lucas TVS. Null Hypothesis H0: 1 = 2 There is a no significant difference between opinion given by dealers / mechanics in terms of after sales service provided by the Lucas TVS. Alternate Hypothesis Ha: 1 2 (1 < 2 or 1 > 2) There is a significant difference between opinion given by dealers / mechanics in terms of after sales service provided by the Lucas TVS.

DEALERS: Cross Tabulation

Have you purchased Lucas-TVS starters? * What do you feel about after sales service provided by Lucas-TVS? Count What do you feel about after sales service provided by Lucas-TVS? Satisfied Have you purchased Lucas-TVS starters? Total Yes No 0 15 15 Moderate 33 2 35 Neutral 12 7 19 Dissatisfied 0 6 6 Total 45 30 75

Table 19: Cross tabulation

Fig 15: Bar chart CHI-SQUARE TESTS Value Pearson Chi-Square 48.722a Table 20: Chi-square tests Degree of Freedom Significant Level Table Value Calculated value = = = = 3 Significant at 5% 7.815 48.7222 df 3 Asymp. Sig. (2-sided) .000

At 95% confidence level, the theoretical chi-square value is 7.815. Here the calculated chi-square value is greater than the theoretical chi-square value. Hence the null hypothesis is rejected. That is, there is a significant difference between opinion given by dealers in terms of after sales service provided by the Lucas TVS.

MECHANICS: Cross Tabulation

Have you purchased Lucas-TVS starters? * What do you feel about after sales service provided by Lucas-TVS? Count What do you feel about after sales service provided by Lucas-TVS? Satisfied Have you purchased LucasTVS starters? Total Yes No 5 0 5 Neutral 10 0 10 Dissatisfied 2 33 35 Total 17 33 50

Table 21: Cross tabulation

Fig 16: Bar chart

CHI-SQUARE TESTS

Value Pearson Chi-Square 41.597a

df 2

Asymp. Sig. (2-sided) .000

Table 22: Chi-square tests

Degree of Freedom Significant Level Table Value Calculated value

= = = =

2 Significant at 5% 5.991 41.597

At 95% confidence level and degree of freedom 2, the theoretical chi-square value is 5.991. Calculated chi-square value is 41.597, which is greater than the theoretical value. Hence the null hypothesis is rejected. That is, there is significant difference between opinions given by mechanics in terms of after sales service provided by the Lucas TVS.

3) By the chi-square test, we have to analyze whether there is any significant difference in the opinion given by the dealers and mechanics in terms of promotional activity that they expect from Lucas TVS. Null Hypothesis H0: 1 = 2 There is a no significant difference between opinions given by dealers in terms of promotional activity that they expect from Lucas TVS. Alternate Hypothesis Ha: 1 2 (1 < 2 or 1 > 2) There is a no significant difference between opinions given by dealers in terms of promotional activity that they expect from Lucas TVS. DEALERS: Cross Tabulation

Number of Years you have been in this automotive field? * What type of promotional activity would you like to get from Lucas-TVS? Count What type of promotional activity would you like to get from Lucas-TVS? Providing Discounts Number of Years you have Less than 5 yrs. been in this automotive Between 5 to 10 yrs. field? Between 10 to 15 yrs. Total 14 14 5 33 Increasing profit margin 8 24 5 37 Others 2 0 3 5 Total 24 38 13 75

Table 23: Cross tabulation

Fig 17: Bar chart CHI-SQUARE TESTS

Value Pearson Chi-Square 12.567a

df 4

Asymp. Sig. (2-sided) .014

Table 24: Chi-square tests Degree of Freedom Significant Level Table Value Calculated value = = = = 4 Significant at 5% 9.488 12.567

Here the calculated chi-square value is greater than the theoretical chi-square value. Hence the null hypothesis is rejected. That is, there is a significant difference between opinions given by dealers in terms of promotional activity that they expect from Lucas TVS.

MECHANICS: Cross Tabulation

Number of years you have been in this automotive field? * What type of promotional activity would you like to get from Lucas-TVS? Count What type of promotional activity would you like to get from LucasTVS? Coupons or Points Number of years you have Less than 5 years been in this automotive field? Between 5 to 10 years between 10 to 15 years More than 15 years Total 14 13 11 4 42 Others 1 4 1 2 8 Total 15 17 12 6 50

Table 25: Cross tabulation

Fig 18: Bar chart

CHI-SQUARE TESTS Asymp. Sig. (2sided) 3 .314

Value Pearson Chi-Square 3.555a

df

Table 26: Chi-square tests

Degree of Freedom Significant Level Table Value Calculated value

= = = =

3 Significant at 5% 7.815 3.555

At 95% confidence level and 3 dof, theoretical chi-square value = 7.815. Here the calculated chisquare value is less than the theoretical chi-square value. Hence the null hypothesis is accepted. That is, there is no significant difference between opinions given by mechanics in terms of promotional activity that they expect from Lucas TVS.

FINDINGS & RECOMMENDATIONS

FINDINGS
o The awareness about the starter products towards dealers is only 83%. Whereas the awareness towards mechanics is very low, that the percentage of unknown users (58%) is more than the known users (42%). o As per the ranking method, the dealers give more priority to customer preference which is followed by quality of that product. The mechanics give more priority to quality which is followed by customer preference. o The Chi square Test has revealed that there is significant difference between both the dealers opinion and mechanics opinion on satisfaction with price range of Lucas TVS starter products. o The Chi square Test has revealed that there is a significant difference between opinions given by dealers in terms of promotional activity that they expect from Lucas TVS. o Dealers insist to increase awareness, increase profit margin and provide discounts for increasing their sales. The mechanics mainly insist to provide coupons or points during the sales of starters.

RECOMMENDATIONS
Awareness has to be increased mainly to the end users/mechanic. It can be created by arranging a meeting with all the mechanics and offering gifts or by umbrella campaign. Banners can be placed in front of the retail shops for increasing the mind recalling capacity among the users. Painting on the wall about the product will help in mind recalling among the end users. Prepaid Coupons can be provided initially to increase their sales in this competitive market. Prepaid coupons: This is a kind of promotional activity where both the mechanic and dealers will get profit. In this activity, the company will reduce the coupon amount from MRP while selling products to dealers. Whereas the dealers will give the amount to their users only when they get back their coupons. Because of this activity the dealers will gain profit if the coupons are not being returned back to them by their users. This might prove to be one of the most efficient schemes that benefits both dealers and customers. This activity doesn t need any separate department for maintenance as the activity gets completed between dealers and mechanics The company representative has to be sent at least once in six months to maintain proper relationship with dealers and mechanics.

QUESTIONNAIRE

Name: Address:

DEALERS QUESTIONNAIRE

1) Number of years you have been in this automotive field? a) Less than 5 yrs. c) Between 10 to 15 yrs. 2) Are you aware of starters produced by Lucas-TVS? a) Yes b) No b) Between 5 to 10 yrs. d) More than 15 yrs.

3) Which brand would you prefer while purchasing starters? a) Lucas-TVS c) Mitsubishi 4) Why do you prefer that brand? a) Brand name c) Customers preference e) Profit Margin 5) Which factor influences customer to purchase starters? a) Brand name c) Quality e) Others (.................) 6) Are you satisfied with the Price range of Lucas-TVS products? a) Yes b) No b) Price factor d) Awareness b) Quality d) Awareness f) Others (.................) b) Varroc d) Others (.................)

7) What is your priority given while purchasing starters?

Attributes Quality Brand name Profit Margin Customer preference Promotional schemes 1 1 1 1 1

Ranking (According to priority) 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

* 1- Most Preferred & 5 - Least preferred 8) Have you purchased Lucas-TVS starters? a) Yes b) No

9) What is your opinionon about the usage of Lucas TVS starters?

Attributes Quality Fast Moving Packaging Availability Price Factor 1 1 1 1 1

Ranking (According to priority) 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

* 1- Best & 5 - Worst

10) How frequently starters get repaired (during warranty period)? a) 0-3 months c) 1 year e) Others 11) What strikes your mind when you think of Lucas-TVS? a) Brand name c)Profit margin b) Quality d) Others (.................) b) 3-6 months d) 1-2 years

12) What type of promotional activity would you like to get from Lucas-TVS? a) Providing Discounts c) Increasing profit margin b) Increasing Credit period d) Others (.................)

13) Provide your ranking for Lucas-TVS based on its starter products? a) Excellent c) Fair b) Good d) Poor

14) How often the company representatives visit you? a) Once in a month c) Never b) When needed d) Others (.................)

15) What do you feel about after sales service provided by Lucas-TVS? a) Highly satisfied c) Moderate e) Dissatisfied 16) Provide your valuable opinion for Lucas-TVS to improve its sales in starters? b) Satisfied d) Neutral

THANK YOU FOR YOUR VALUABLE SUGGESTIONS

Name: Address:

MECHANICS QUESTIONNAIRE

1) Are you aware of starters produced by Lucas-TVS? a) Yes b) No

2) Which brand would you prefer while purchasing starters? a) Lucas-TVS c) Mitsubishi 3) Why do you prefer that brand? a) Brand name c) Awareness e) Others (.................) 4) Which factor influences customer to purchase starters? a) Brand name c) Quality e) Others (.................) 5) Are you satisfied with the Price range of Lucas-TVS products? a) Yes b) No b) Price factor d) Awareness b) Quality d) Customers preference b) Varroc d) Others (.................)

6) What is your priority given while purchasing starters?

Attributes Quality Brand name Making profit Customer preference Promotional schemes 1 1 1 1 1

Ranking (According to priority) 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

* 1- Most Preferred & 5 - Least preferred 7) Have you purchased Lucas-TVS starters? a) Yes b) No

8) What is your opinionon about the usage of Lucas TVS starters?

Attributes Quality Ease of fit Finish/Appearance Availability Awareness 1 1 1 1 1

Ranking (According to priority) 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5

* 1- Best & 5 - Worst

9) What type of promotional activity would you like to get from Lucas-TVS? a) Providing Discounts c) Coupons or Points b) Increasing Credit period d) Others (.................)

10) Provide your ranking for Lucas-TVS based on its starter products? a) Excellent c) Fair b) Good d) Poor

11) How often the company representatives visit you? a) Once in a month c) Never b) When needed d) Others (.................)

12) Provide your valuable opinion for Lucas-TVS to improve its sales in starters?

13) What do you feel about after sales service provided by Lucas-TVS? a) Highly satisfied c) Moderate e) Dissatisfied b) Satisfied d) Neutral

THANK YOU FOR YOUR VALUABLE SUGGESTIONS

CONCLUSION

CONCLUSION
Lucas-TVS is the one of the key player in automobile sectors and they are dealing with100 years of experience in this sector. The value of their brand name is very high as the people have lot of trust up on their quality. But to compete with todays global business scenario and survive with the competition in a better manner, Lucas-TVS have to focus on each activity in an innovative manner. The period of internship has been fruitful both to company and as well as myself. The study brings out the truth about the importance of awareness for any product even with good brand name.