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CHAPTER 1

INTRODUCTION

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Purchasing behaviour of consumer is depends on factors and attributes of the product. Consumer always
prefers their expectance product from where they will satisfy fully. If the company’s perform is better
than the Expectation of the customer, than the customer will satisfied from the company. But if the
performance is less than the expectation, than the customer will defiantly dissatisfaction. In the
Automobile Industry, all the companies are much focused to satisfy their customer because the satisfied
customer will create good word of mouth publicity for you.
Sales promotion is one of the seven aspects of the promotional mix. (the other six parts of the
promotional mix are advertising, personal selling, direct marketing, publicity/public relations, corporate
image and exhibitions). Media and non-media marketing communication are employed for a pre-
determined, limited time to increase consumer demand, stimulate market demand or improve product
availability. Examples include contests, coupons, freebies, and loss leaders, point of purchase displays,
premiums, prize, product samples, and rebates.
Sales promotion can be directed at the customer, sales staff, or distribution channel members
(such as retailers). Sales promotion targeted at the consumer are called consumer sales promotions. Sales
promotions targeted at retailers and wholesale are called trade sales promotions. Some sales promotions,
particularly ones with usual methods, are considered gimmicks by many.

Theoretical background

Promotion is term taken from Latin (Promovere) where it means moving from one end to
another. In marketing, promotion means all those tools that a marketer uses to take his Products from
factory to the customer and hence involves advertising, sales promotion, personal selling and public
relations. Communication with prospective and present customers. It is called as integrated marketing
communication.

Integrated Marketing Communication:

IMC is a way of looking at the whole marketing process from view point of customer.
IMC consists of:

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Integrated
Marketing
Communication

Direct &
Public Relation Personal
Advertising Sales Promotion Interactive
& Publicity Selling
Marketing

1) Advertising:

Any Paid form of non personal presentation and promotion of ideas, goods, or services by
an identified sponsor.

Advertising is a form of communication designed to persuade potential customers to choose your product
or service over that of a competitor.

Successful advertising involves making your products or services positively known by that section of the
public most likely to purchase them.

It should be a planned, consistent activity that keeps the name of your business and the benefits of your
products or services uppermost in the mind of the consumer.

Objectives of advertising:

The objective of advertising is to increase your profit by increasing your sales. Advertising aims to:

 Make your business and product name familiar to the public


 Create goodwill and build a favourable image
 Educate and inform the public
 Offer specific products or services
 Attract customers to find out more about your product or service

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The rules of advertising

There are four rules to consider when planning any advertising activity – i.e. before you prepare and book
any form of advertising.

Aim - What is the primary purpose of the advertisement? Is it to inform, sell, produce listings or improve
the image of your business?

Target - Who is the target? From which sector of the public are you trying to achieve a response? For
example is it male, female, adult, teenager, child, mother, father etc.

Media – Bearing the aim and target in mind, which of the media available to you is the most suitable –
i.e. TV, radio, press or Internet?

Competitors – What are your competitors doing? Which media channel do they use? Are they
successful? Can you improve on their approach and beat them in competition?

Developing effective advertising

Good advertising generally elicits the following four responses:

Attention – It catches the eye or ear and stands out amid the clutter of competing advertisements.

Interest – It arouses interest and delivers sufficient impact in the message or offering.

Desire – It creates a desire to learn more or crave ownership.

Action – It spurs an action which leads to achievement of the ad’s original objective – i.e. it prompts
potential customers to purchase or use your product or service.

Commonly used media:

There are many media options open to advertisers. Which media you use will depend on who you are
trying to reach, what you want to say and your budget. Often a combination of media (the media mix) can

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be used to good effect. Remember to keep your branding and message consistent across all media. This
includes use of colours, logos, design elements and fonts.

• Stationery

Stationery, which includes letterheads, envelopes and business cards, is a means by which your business
image or “name identification” is projected. Good quality stationery, used with care and attention and
with a high standard of presentation, is an everyday means of presenting your business image.

• Window display or office front

The external presentation of your business office or shop is one of the principal ways of establishing your
business image. An attractive, well maintained exterior with clear, bold sign writing is an essential start.
Windows should be bright, attractively presented, scrupulously clean and well lit at night. The display
should be arranged neatly and aimed at projecting an attractive company image and providing a reason to
buy your products or services. Above all it should have sufficient impact to attract attention.

• Press advertising

This is a commonly used form of general advertising and includes advertising in all press such as
newspapers, magazines and journals. Press advertising is suitable for image building, information
dissemination and sales campaigns. It is also a very affordable option for small businesses.

• Radio

Radio is considered by many advertisers as an ideal medium due to its ability to reach specific target
groups e.g. teenagers, racing followers or grocery buyers. Radio advertising covers spot adverts (usually
15 or 30 second), promotions or talkback/DJ discussions. Most radio stations offer packages which
include production and extension of your radio campaign through their websites.

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• Television

Television is a powerful advertising medium because it creates impact through sight, sound and
movement however the cost of producing the advertisement and procuring sufficient air time to allow the
campaign to work often makes it prohibitive for small business.

• Direct mail

This is a broad category covering direct communication with the consumer through email, post or fax. It
can include newsletters, catalogues and letters. If you plan to use email, be sure to comply with national
anti-SPAM legislation which makes it illegal to send unsolicited commercial electronic messages. Visit
the Australian Communications and Media Authority website for more details - www.acma.gov.au.

• Outdoor

This is any type of advertising which is done outdoors, including static advertising such as billboards,
backs of street benches and bus shelters or mobile advertising displayed on buses, trains, taxis or towed
signage.

• Ambient

Refers to any form of advertising that occurs in a non-standard medium outside the home, and usually
where your consumers are likely to be. It’s limited only by your imagination and includes things like
advertising on the back of shopping receipts or toilet doors at the cinema, placing branded coasters at the
local pub, projecting onto buildings, advertising inside lifts or distributing branded cups.

• Cinema

You can purchase cinema advertising by individual cinemas or screens for a set amount of screenings or
“runs”. Most providers offer packages which include production and screening of your advertisement

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• Point of Sale

Advertising at the point where the consumer makes a purchase decision eg: floor stickers, in-store digital
advertising, shopping trolley signage, shelf or counter posters or playing interviews about your product in
store.

• Online

The options for online advertising continue to grow rapidly. They include advertising on your website,
advertising on other websites, creating links to your website from other websites, publishing blogs,
offering online product games, social networks and forums.

• Directory listings

Many consumers use business directories to find a supplier. Directories include the yellow or white pages,
union directories, trade directories or local business directories.

2) Sales Promotion:

Sales promotion relates to short term incentives or activities that encourage the purchase or sale of a
product or service. Sales promotions initiatives are often referred to as “below the line” activities.
3) Public Relation & Publicity:

The Public Relations Institute of Australia (PRIA) defines Public Relations (PR) as: “The deliberate,
planned and sustained effort to establish and maintain mutual understanding between an organisation (and
individual) and its (or their) publics”.

Put more simply, public relations is about building good relations with the stakeholders (public) of your
business by obtaining favourable publicity, building a good corporate image and handling or heading off
unfavourable rumours, stories and events.

By building good relationships with your stakeholders, particularly customers, you can generate positive
word of mouth and referrals from satisfied customers.

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STAKEHOLDER:

Stakeholders are the various groups in a society which can influence or pressure your business’s decision
making and have an impact on its marketing performance. These groups include:

 Clients/customers
 Staff
 Shareholders
 Strategic partners
 Media
 Government
 Local community
 Financial institutions
 Community groups

Operationally, stakeholders really refer to those groups that your business is or should be, communicating
with.

The main public relations tools:

Typical PR tools include:

 News creation and distribution (media releases)


 Special events such as news conferences, grand openings and product launches
 Speeches and presentations
 Educational programs
 Annual reports, brochures, newsletters, magazines and AV presentations
 Community activities and sponsorships

4) Personal Selling:
Face to face interaction with prospective purchaser for the purpose of making presentations,
answering questions, and procuring orders. Opposite of the one directional promotional method,
direct selling connects company representatives with the consumer. These interactions can be in

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person, over the phone and over email or chat. This personal contact aims to create a personal
relationship between the client and the brand or product.

5) Direct and Interactive Marketing:

Use of mail, telephone, fax, e-mail, or internet to communicate directly with or solicit
response or dialogue from specific customer or prospects.

SALES PROMOTION:

In marketing, sales promotion is one of the five aspects of promotion. The other four Parts of the
promotional mix are advertising, personal selling, publicity/public relations, and direct &interactive
marketing. Sales promotions are non-personal promotional efforts
That is designed to have an immediate impact on sales. Sales promotion is media and
Non-media marketing communications employed for a pre-determined, limited time to
Increase consumer demand, stimulate market demand or improve product availability.
Examples include:

 Rebate :
Under it in order to clear the excess stock, products are offered at some reduced price.

 Discount:
Under this method, the customers are offered products on less than the listed price.

 Refunds:
Under this method, some part of the price of an article is refunded to the customer on showing proof of
purchase.

 Product Combination:
Under this method, along with the main product some other product is offered to the customer as a gift.

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 Quantity Gift:
Under this method, some extra quantity of the main product is passed on as a gift to the customers.

 Instant Draw and Assigned Gift:


Under this method, a customer is asked to scratch a card on the purchase of a product and the name of the
product is inscribed thereupon which is immediately offered to the customer as a gift.

 Lucky Draw:
Under this method, the customers of a particular product are offered gifts on a fixed date and the winners
are decided by the draw of lots. While purchasing the product, the customers are given a coupon with a
specific number printed on it. On the basis of this number alone the buyer claims to have won the gift.

 Usable Benefits:
Under this method, coupons are distributed among the consumers on behalf of the producer. Coupon is a
kind of certificate telling that the product mentioned therein can be obtained at special discount.
It means that if a customer has a coupon of some product he will get the discount mentioned therein
whenever he buys it. Possession of a coupon motivates the consumer to buy the product, even when he
has no need of it.

Such coupons are published in newspapers and magazines. Some companies distribute coupons among its
shareholders. Sellers collect the coupons from the customers and get the payment from the company that
issues the same.

 Full Finance @ 0%:


Under this method, the product is sold and money received in instalment at 0% rate of interest. The seller
determines the number of instalments in which the price of the product will be recovered from the
customer. No interest is charged on these instalments.

 Samples or Sampling:
Under this method, the producer distributes free samples of his product among the consumers. Sales
representatives distribute these samples from door-to-door.

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This method is used mostly in case of products of daily-use, e.g., Washing Powder, Tea, Toothpaste, etc.
Thus, the consumers willy-nilly make use of free sample. If it satisfies them, they buy it and in this way
sales are increased.

 Contests:

Some producers organise contests with a view to popularizing their products. Consumers taking part in
the contest are asked to answer some very simple questions on a form and forward the same to the
company. The blank form is made available to that consumer who buys the product first.

Result is declared on the basis of all the forms received by a particular date. Attractive prizes are given to
the winners of the contest. Such contests can be organised in different ways.

Whereas advertising gives a reason to buy, Sales promotion offers an incentive to buy. Sales promotion
can be directed at either the customer, own sales staff, or distribution channel members (such as retailers).
Sales promotions targeted at the consumer are called consumer sales promotions. For example:
Samples, coupons, cash refunds, price offs, prizes etc.
Sales promotions targeted at retailers and wholesalers are called trade sales promotions. For example:
Prices offs, advertising allowances, and free goods etc. Sales promotions targeted at company s own sales
forces are called as sales-force promotion. For example: Trade shows, conventions, contests for sales
representatives and specialty advertisements.

Sales promotion activities can be targeted toward final buyers (consumer promotions), business customers
(business promotions), retailers and wholesalers (trade promotions) and members of the sales force (sales
force promotions). Here are some typical sales promotion activities:

Consumer promotions

 Point of purchase display material


 In-store demonstrations, samplings and celebrity appearances
 Competitions, coupons, sweepstakes and games
 On-pack offers, multi-packs and bonuses
 Loyalty reward programs

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Business promotions

 Seminars and workshops


 Conference presentations
 Trade show displays
 Telemarketing and direct mail campaigns
 Newsletters
 Event sponsorship
 Capability documents

Trade promotions

 Reward incentives linked to purchases or sales


 Reseller staff incentives
 Competitions
 Corporate entertainment
 Bonus stock

Sales Force Promotions

 Commissions
 Sales competitions with prizes or awards

PURPOSE OF SALES PROMOTION:

Sales-promotion tools vary in their specific objectives. Though some common Objectives are:
 Stimulate consumer trial
 To reward loyal customers
 To increase the repurchase rate of occasional buyers
 To attract brand switchers
 Enables manufacturers to adjust to short term variation in supply and demand
 Promote greater consumer price awareness

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Promotion Schemes include:

 To attract the customers


 To increase the sales of the product within a short time period
 To make aware to the customers about the product.

REASON FOR SELECTING THE TOPIC:

The automobile sector is progressing rapidly and the Indian automobile market in Pune has grown
rapidly in last few years. All kinds of automobiles such as cars, pickup trucks, two-wheelers and tractors,
have witnessed an increase in sale. The Automobile market in Pune is highly competitive so it is a hub for
several automobile companies. Customers in Pune are known as an intelligent consumer as majority of
new aspirant of buying new vehicles for convenience and prestige or as a status also are from IT industry,
BPO industry, consultancy, and businessman. In earlier days in automobile sector there were very few
options available to customer but as time changing and increase in the competition customers have lots of
options to choose so it is important to study the effect of promotional activities on purchase decision of
two wheeler by customers. The core part of the project was to study and identify key factors of purchase
decision of two wheelers by customers. The sample of the project was 105 customers.

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OBJECTIVES OF THE PROJECT

The project was undertaken with a prime objective to understand the practical aspects of
Sales promotion carried out for the consumer durable products.

Primary Objectives:

To study the execution of promotional schemes for TVS motor in Pune City

Secondary Objectives:

 To make the customers aware about the products & offers provided
 To understand the preferences of customers
 To solve the queries of the customers related to the products & services
 To know the popularity of TVS vehicles among the customers
 To increase the sales of TVS vehicles

SCOPE

The scope of the project was within Pune City around total 105 prospects were interacted in the process
of due completion of this project and complete product range of the categories of the company products
were duly considered for this study providing a holistic approach.

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CHAPTER 2

COMPANY PROFILE

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Type Public Limited Company
Traded as BSE – 532343
NSE – TVSMOTOR
Industry Automobiles
Founded 1978
Founder(s) Venu Srinivasan, Chairman
Key People  Venu Srinivasan, Chairman
 K N Radhakrishnan, President & CEO
 S G Murali, CFO
 H S Goindi, President Marketing

Products  TVS Apache


 TVS Scooty Pep+
 TVS Zest
 TVS Wego
 TVS Jupiter
 TVS Phoenix
 TVS Star city+
 TVS Star Sport
 TVS XL Super HD
Revenue around USD 1.6 billion
Net Profit 347.83 Cr
Net Sales 10098.22 Cr
Website WWW.tvsmotor.in

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A) THE COMPANY HISTORY

TVS Motors Company, a leading two wheeler company that began with the vision of the founder of the
Sundaram Clayton Group, the late T.S. Srinivasan- “to design, develop and produce an affordable
moped for the Indian family”, “This vision was realized in 1980 when TVS 50, India’s first two-seated
moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. A byword for ruggedness and
reliability, the TVS 50 proved to be promising success and paved the way for many success for TVS
Suzuki ever since.
TVS Motor traces its origins back to the entrepreneurial spirit of Trichur Vengaram Sundaram
Iyengar who gave up lucrative careers in the Indian Railways and in banking to set up his own business.
He founded T.V.Sundaram Iyengar and Sons Limited in 1911, a company that consolidated its presence
in the transportation business with a large fleet of truck and buses under the name of South Roadways
Limited. When he died in 1955 his sons took the company ahead with several forays in the automobile
sector, including finance, insurance, and manufacture of two-wheelers, tyres and components. Now Venu
Srinivasan is the grandson of the TVS Group’s founder, T.V. sundaram Iyengar is became the Managing
Director of Sundaram Clayton Ltd. In May 1979. He went on to become Chairman of TVS Motor
Company in July 2002.
TVS Motor Company (TVS Motor), is the flagship company of TVS Group, manufactures a range of
two-wheelers including motorcycles, scooters, and mopeds. The company also manufactures three
wheelers, two strokes petrol and two stroke liquid petroleum gas (LPG). It also offers automobile spares
and accessories. The company operates in India, Singapore, Indonesia and the Netherlands. It is
headquartered in Chennai, India and employees about 4,248 people. 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 $1 billion in2009-2010. It has four manufacturing facilities located at Hosur, Mysore,
Himachal Pardesh, and Indonesia and a production capacity of 300 thousand units a year. The company
has a production capacity of 2.5million units a year. The company manufactures a wide range of two
wheelers such as mopeds, scooters and motorcycles.

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PRESS RELEASES - TVS MOTOR COMPANY LTD.
1982
- The company was incorporated as Indian Motorcycle Pvt. Ltd. on 15th July. Its name was changed to Indo Suzuki
Motorcycles Pvt. Ltd. and it was converted into a public limited company on 12th January, 1984. It was promoted
by Mr. N. Krishnan in collaboration with Suzuki Motor Co. Ltd. Japan; Sundaram-Clayton, Ltd., a member of the
Company to the extent of Rs 70 lakhss.
- The company entered into a technical know-how and assistance agreement with Suzuki Motor Co. Ltd., of Japan
on 22nd September. As per the terms of the Collaboration, Suzuki agreed to furnish complete technical information
and know-how, trade secrets and other data.
- All shares taken up by promoters etc.
1984
- The company received a letter of intent for the manufacture of 20,000 spark ignition operated out board motors
and 30,000 internal combustion spark ignition engines upto 500cc per annum.
- 59,40,000 shares issued at par in 1984. 7,00,000 shares allotted to Sundaram Clayton, Ltd. Chennai, 70,000 shares
allotted to Anusha Investments (P) Ltd. Chennai, 20,00,000 shares allotted to Suzuki Motor Co., Ltd., Japan;
2,20,000 shares allotted to employees and business associates and 29,70,000 shares offered to the public.
1985
- A new company "Lakshmi Auto Components Pvt Ltd." was incorporated for the manufacture of critical engines
and transmission parts.
1986
- The company acquired the assets of the moped division from Sundaram Clayton Ltd. The cost of acquisition was
met partly by rights issue of equity shares. The company subscribed to 39,20,000 equity shares of Rs.10 each of
Lakshmi Auto Components Pvt Ltd, whereupon it became a subsidiary of the company.
- The name of the company was changed from Indo Suzuki Motorcycles Ltd. to TVS Suzuki Ltd with effect from
18th August.
- 154,00,000 Rights Equity shares issued at par in prop. 2:1.
1988
- The company obtained a letter of intent for expanding the capacity to 4,00,000 Nos. two wheelers.
1989
- The working was adversely affected due to labour unrest which resulted in a lock-out from 28th February 1990.
The lock out was lifted in the second week of June 1990.
1990
- The company launched a 34cc miniped to take advantage of the Motor Vehicle Act that exempts such vehicles
from the payment of road tax. The Company worked for only 10 months due to lock-out.

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1991
- The technical aid agreement entered into with Suzuki Motor Co., Japan which expired in August 1991 was
extended for three more years with the approval of the Government of India.
1992
- The Company launched two new models of motor cycles viz. `Sumurai' and `Shogun'.
1993
- The Company launched a new model of moped viz. `TVS Scooty'.
1995
- The Company was studying the feasibility of opening a second plant at a different location to meet the growth in
demand for two wheelers in the near future. It also proposed to introduce upgraded version of mopeds. In addition,
during the year, the Company undertook to develop new models of motorcycles.
1996
- The company is taking steps to meet the increase in demand for its products and improve the market share.
- A statement relating to the subsidiary, M/s Lakshmi Auto Components Limited, Chennai, and a copy of its annual
accounts for the year ended 31st March, 1996 are attached to the Balance Sheet pursuant to section 212 of the
Companies Act, 1956.
- As per the requirements of section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of
Particulars in the Report of Board of Directors) Rules, 1988, the information regarding conservation of energy,
technology absorption and foreign exchange earnings and outgo are given in annexure I to this report.
1997
- TVS-Suzuki plans to set up an auto ancillary estate through joint venture with some of its existing components
suppliers. The proposed project is to come up at a new 57 - acre site near TVS-Suzuki's existing plant at Hosur.
- Leading two-wheeler manufacturer in the country, TVS Suzuki, will soon set up a new 2.5 lakhs capacity scooter
plant in Mysore.
- TVS-Suzuki (TSL) - a joint venture between the TVS group and Suzuki Motor Corporation, Japan - was the first
company to launch a 100-cc motorcycle in the Indian market.
- Credit Analysis & Research Ltd (Care) has assigned the credit rating of CARE AA+ (double A plus) to the
proposed non-convertible debenture issue of Rs.100 crore by TVS-Suzuki Ltd (TSL).
- TVS Suzuki is a joint venture between Saundaram Clayton Ltd. of the TVS group and Suzuki Motor Corporation,
Japan.
- The company proposes to introduce kick start facility.
- TVS Suzuki Ltd (TSL), the second largest two-wheeler manufacturer in the country, will be restructuring its
entire vendor-base in the next five years with the objective of creating robust vendors to meet its future expansion
plans.

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- TVS Suzuki Limited is officially launching its new moped model, the XL Super.
- The Rs. 100 crores non-convertible debentures of TVS-Suzuki Limited rating of AA + (high safety with higher
standing) has been retained by CARE.
1998
- TVS Suzuki Ltd, one of the leading two-wheeler manufacturers in the country, has crossed the Rs.1, 000-crore
turnover mark in 1997-98.
- TVS will be the first company in the country to introduce the 4 stroke scooter in the Indian market.
- TVS' new-generation state-of-the-art four-stroke scooter Spectra, of which we gave you an exclusive preview last
month, was launched in spectacular fashion at the TVS Millennium Show on October 1 in New Delhi.
- TVS Suzuki Ltd on October 1 launched its new generation 4-stroke scooter `TVS Spectra' in Delhi.
1999
- TVS Suzuki is all set to launch a scaled-down version of Spectra -- the recently launched four-stroke scooter
- The company is set to launch Spectra on a nation-wide basis in April.
- Suzuki has indicated to the TVS group that if it did not agree to the Japanese company's acquiring a majority
stake, it should allow Suzuki to set up a 100 per cent subsidiary.
2000
- The Company, pioneers of Indo-Japanese motorcycles in the country, has launched its latest offering, Suzuki
Fiero, in the Kerala market.
- The Tamil Nadu based TVS-Suzuki has launched the 150 CC four-stroke powerhouse Suzuki Fiero in Tamil
Nadu, close on the heels of its launch in Rajasthan, Karnataka and Kerala.
- Two-Wheeler major, TVS-Suzuki Limited is set to create a special cell to tap the institutional segment.
- The Company proposes to re launch its four-stroke scooter, Spectra, in July.
- Suzuki has indicated to the TVS group that if it did not agree to the Japanese company's acquiring a majority
stake, it should allow Suzuki to set up a 100 per cent subsidiary.
- Two-wheeler major TVS Suzuki is all set to cross the magic one million mark durisng the current fiscal with 12
new models lined up over the next 18 months.
- Motorcycle giant, TVS Suzuki, has forged an alliance with Brand Dotcom to leverage the latter's online expertise
brand building on the Net.
- TVS-Suzuki Ltd on August 30th formally launched its indigenously developed 4-stroke motorcycle, TVS Victor,
here. The price has been fixed at Rs 41,187, (ex-showroom, Chennai).
- The TVS group and Suzuki Motor Corporation September 27 parted ways from their 15-year-old joint venture
with the former buying out the 25.97 per cent stake of the Japanese company for Rs 9 crore.

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2002
- TVS Motor Company Ltd has informed that the Board declared an interim dividend of Rs 9.00 per share on 2, 31,
00,070 equity shares of Rs 10/- each fully paid up, aggregating to Rs 231.00 million.
2003
-TVS Motor Company has recorded a market share of 35% from motorcycles division
-K.S.Bajpai has been appointed as an Additional Director on the Board.
-TVS, Bajaj Auto and Yamaha have grabbed the market share from the country's largest motor cycle maker Hero
Honda.
-The TVS victor sales have crossed 4 lakhs unit marks in less than 18 months of its launch.
-TVS Motor has recorded a 31% growth in its sales.
-C V R Panikar has been appointed as Additional Director on the Board of TVS Motor Company Ltd.
-TVS Motor Company has reintroduced Fiero, in order to compete with Bajaj Pulsar.
-TVS Motor Company Ltd has introduced its own racing bikes which Team TVS will test on the tracks in Asian
Circuit.
-TVS Motor launched 4 new mobiles including a new brand 100-cc mobile called the Centra.
-TVS Motor Chairman and MD Venu Srinivasan has been selected in Business Week's Stars of Asia which covers
the top 25 achievers in the continent.
-TVS Motor Company adds two new models in two-wheeler segment.
-TVS Motor ties up with State Bank of India for scooter and Motorcycle financing.
-Launches Fiero F2 and Scooty Pep models
-Board of approves the merger of engine components division of its subsidiary, Lakshmi Auto Components (LAC)
with TVS Motors effective from April 2, 2003
2004
-TVS Motor, on Jan 5 launched Centra, a 100 cc four-stroke motor cycle, with variable timing intelligent (VTI)
engines, claiming to give more mileage to consumers. The Centra has bundled price, style, power along with fuel
efficiency making it a fill-once-a-month bike, and it's priced at Rs.36, 990. Nearly Rs 100 crore investments had
gone into the launch of 'Centra', including R&D, plant and machinery.
-TVS Motor Company Unveil TVS Centra With ' VT-i Engines',, a 100 CC 4 stroke motorcycle
-TVS Motor Company launched its new bike - TVS Centra - here on February 9, 2004, for the first time in the
State. It is a 100-cc four-stroke motorcycle targeted at the popular segment and a Fill-it-once-a-month bike,
competitively priced at Rs. 36,990. The vehicle has been launched in January in the metros and other cities and so
far 8,000 vehicles had been sold in the country.

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-TVS Motor Company and Union Bank of India (UBI) have announced the launch of `Union Miles Scheme,' an
exclusive two-wheeler finance scheme
- TVS Motor Company (TVS) launches new 125cc, 4-stroke Victor GLX motorcycle in Chennai on May 02, 2004
-TVS Vice President resigns
-TVS Motors forges alliance with Andhra Bank
- Canara Bank, TVS Motor rolls out TVS Can mobile
-TVS picks up Asian Network for Quality award
-TVS unveils new version of 'Victor GX'
2005
-TVS Motor Company introduced its entry-level 4-stroke motorcycle - TVS Star - in the Kerala market
-TVS rolls out Star bike in Andhra Pradesh
-TVS Motor Company launches TVS Centra VT-i, a variant of its four-stroke 100cc model TVS Centra on May 6
-TVS Motor rolls out two motorcycle variants named Victor EDGE, Star City and Scooty Pep plus
2006
-TVS Motor appoints new President
-TVS launches Apache in Vizag
-TVS Motor Company launched a new version of 125 cc Victor GLX with an electric start option
2007
-TVS Motor Co, has rolled out seven new vehicles, including its first three-wheeler and a new 125 cc bike, aimed
at gaining lost share in a highly competitive market.
2009
- TVS Motor Company launched Scooty Streak, which is its latest scooterette targeted at girls of 16 to 20 age
group.
- TVS Motor Company Limited has appointed Mr Prince Asirvatham as an additional and independent director of
the board of directors of the company effective April 21, 2009.
- TVS Motor Company entered the 110 cc segment by unveiling 2 brand new products, an auto-clutch motorcycle
and an automatic scooter.
2010
- TVS Motor Company has launched India's first auto-clutch motorcycle- TVS Jive, in Chandigarh.
- TVS Motor Company has given the Bonus in the Ratio of 1:1
2011
- TVS Motor Company joins hands with Syndicate Bank for three-wheelers

22
-TVS Motor Company has developed an engine that is 20 per cent more fuel efficient and is usable both in scooters
and motorcycles.
2012
- TVS motor company signed a MOU with Central Bank of India to provide attractive financing options for its
three wheeler TVS king across all 4,000 branches operating in India.
- TVS Motor Company appoints Sudarshan Venu as Vice President
- TVS Motor Company Ltd is a winner of the CII ITC Sustainability Awards 2012
2013
-TVS Motor Company wins Silicon India Mentor Graphics Best VLSI / Embedded Design – Automotive Award
-TVS Motor Company and BMW Motorrad Sign Cooperation Agreement -Indias TVS Motor Company to set up
assembly line in Uganda.
2014
-TVS Motor Company launches TVS TRU4 Synthetic 10W 30 Engine Oil -Indias TVS Motor Company launches
Star HLX 125 Motorcycle in Tanzania -TVS Motor Company launches Stylish TVS Star City+ -Asian Network for
Quality Award 2014
- Venu Srinivasan, Chairman of TVS Motor Company made Honorary Citizen of Busan
-TVS Motor Company posts 36% sales growth in November
-Appointment of Mr Sundarsan Venu as Joint Managing Director and Dr Lakshmi Venu as Director
-TVS Motor Company introduces TVS WEGO
-Purdue University, USA Honours Mr. Venu Srinivasan
2015
-TVS Motor Company sign MOU with TN Government for investment of 359 Crore
-TVS Jupiter crosses 500,000 Landmark
-TVS Motor revenue grows 27% to Rs. 10098 Crores in FY 2014-15

23
FUTURE PLANS OF TVS MOTOR COMPANY LTD. –

 TVS Motor and Sundaram Clayton together to invest Rs 800 crore :

India's leading two-wheeler company TVS Motor and Sundaram Clayton together
planning to invest around Rs 800 crore in Tamil Nadu. Speaking on the sidelines of Tamil Nadu Global
Investors Meet at Chennai today Venu Srinivasan, chairman and managing director, TVS Motor and
Sundaram Clayton said that Tamil Nadu is the best place to invest and has tremendous work force, great
degree of industrial peace, trained graduates, and very responsive government

Both the companies together would invest around Rs 800 crore over the next three years this will be
increasing the two-wheeler capacity from 2 million to 2.5 million in Tamil Nadu. The investment will be
on castings, plastic and aluminium casting and also on the BMW project.

 TVS Motor to launch three products by January 2016 Company to launch new Moped, new TVS
Victor and Apache 200cc :
Two-wheeler major TVS Motor has lined up three major launches in the next six months. Addressing
shareholders at the company's 23rd Annual General Meeting today, Venu Srinivasan, chairman, TVS
Motor Company Ltd said that a new four-stroke Moped, a new TVS Victor and Apache 200cc will be
launched in the next six months.
He added that the launch of TVS Victor will strengthen company's presence in the executive segment,
where it has low presence. Srinivasan said 2014-15 was relatively a slow year, but 2016-17 will be
"dramatic" for the two-wheeler and for automobile industry. The current fiscal, he said, will continue to
be slow. Saying that the slowdown in the rural economy has affected the two-wheeler industry,
Srinivasan said that while the growth in the first half was 16%, growth in the second half was a
marginally 1%. In 2014-15, company sold 24.1 lakhs two wheelers, up 20.9% as compared to 2013-14
sales. Srinivasan said the company's market share has increased to 13.2% from 11.8% in the previous
year.

24
 TVS Motor to invest Rs 350 crore in 2015-16 :

Two wheeler major TVS Motor is planning to invest around Rs 350


crore during the current fiscal. The proposed investment is to increase company's two-wheeler and three-
wheeler manufacturing capacities, product development and toward the BMW project. The company is
also planning to invest in its Indonesian arm and in its financial arm TVS Credit. During an earnings call,
company's President and Chief Executive Officer K N Radhakrishnan and its Chief Financial Officer S G
Murali said that the company plans to invest around Rs 350 crore during the current fiscal.
An email sent to company's spokesperson did not elicit response. The investment will be mainly in
developing products, capacity expansion and in the project, which it is doing with BMW. Last year the
company spent around Rs 450 crore as apex.
Company plans to expand total two-wheeler manufacturing capacity to around 3-3.2 million units from
the current 2.8 million units a year. Three wheeler capacity will be increased to 1.50 lakhs units from one
lakhs units currently. Expansion will come mainly in Himachal Pradesh and Mysore plants.
TVS Motor's all the three facilities in the country are flexible to manufacture all the three products,
including two-wheelers, mopeds and three-wheelers. "We will be reviewing our capacity expansion every
quarter," said Radhakrishnan during the call.
All the three facilities of the company can manufacture all the three products including scooters,
motorcycles and mopeds. Besides, the company is also planning to invest around Rs 40-50 crore in the
Indonesian arm and around Rs 75-100 crore in credit service arm TVS Credit Services Ltd, which funds
two-wheelers, tractors, three-wheelers and used cards. Currently the financial services company has a
loan book is around Rs 2,700 crore.
Speaking about the Indonesian business, they said, PBT loss of the Indonesian arm has come down to $7
million and company made a profit of Rs 55 crore by selling a land. "Industry was bit slow in Indonesia,
Japanese market share is dominated by almost 98-99%, so it taking little longer time. We are using the
platform, which the company developed in the country to expand our exports, while trying to establish in

25
the domestic market," they said during the call. The company while it will focus to cut down the loss.
Combination of export thrust managing with the existing dealers is the strategy the company used in
2014-15 and will continued to do so for this year.
If the company can reach around 6,000-7,000 units a month (in Indonesia), then the company can report
breakeven. Focus is going to be on exports, while working on region based volumes in Indonesia, they
said. During the year ended March 2015, PT TVS Motor Company Indonesia, the subsidiary registered
total sales of 23,348 units compared to 19,191 units in the previous financial year.
Company's total revenue crossed the landmark Rs 10,000 crore figures during the current financial year.
Total revenue increased by 26.8%, growing from Rs 7,965.94 crore in the year ended March 2014 to Rs
10,098.22 crore in the year ended March 2015.
Profit after Tax grew by 32.9% increasing from Rs 261.63 crore in the year ended March 2014 to Rs
347.83 crore in the year ended March 2015.

 TVS Motor-BMW Motorrad to launch first product in 2015-16 :


TVS Motor Co. Ltd on Monday said it will launch a high-powered bike from its partnership with German
auto maker BMW Motorrad in the second half of 2015-16. “The BMW partnership is work in progress as
the bike is designed from scratch,” Venu Srinivasan, chairman and managing director of TVS, said on the
sidelines of the launch of TVS Star City Plus a new 110cc bike.
It is on schedule and will be launched in the second half of 2015-16, he added. He declined to give any
more details. The two companies entered into an agreement last April to sell bikes below 500cc, under the
TVS and BMW brands. The Chennai-based company will invest €20 million in this initiative. “We plan
to improve our market share in the bike segment where we have largely been absent,” Srinivasan said.

The motorcycle market is dominated to the tune of 65% by 100-110cc mass or entry segment bikes used
mostly for City commuting. TVS has just 5.9% of this market, with the Victor and the Star City. In the
executive segment comprising 125 cc bikes, TVS Motor has only Phoenix, launched end of 2012.

With the launch of TVS Star City Plus and re-launch of its new Victor in a few months it expects to
double the sales of two-wheelers to 50,000 a month by January 2015. TVS Star City plus is priced at
Rs.44,000 (on road) in Delhi. Next month, it plans to launch TVS Scooty Zest in the fast-growing scooter
segment.

26
“The new launch and subsequent launches will give us much larger share although I do not want to
speculate on the increase in market share,” said Srinivasan.

TVS Motor was India’s third largest two-wheeler maker with a market share of 18-20% for many years.
However Honda Motorcycle and Scooter India Pvt. Ltd overtook TVS in October 2011. Without a
significant presence in the bike segment, TVS Motor has lost its market share steadily since then,
according to analysts tracking the company. “With the new launches we are positive to improve our
market share to 14.5 % from the current 12 % by next year,” said K.N. Radhakrishan, president and CEO
of TVS Motor.

 TVS Draken

Upcoming

Expected price:

100,000...125,000

Expected Launch Date: DEC 2015 – APR 2016

TVS Draken Overview


TVS Motors India is a reputed two-wheeler manufacturer which offers quality and affordable two-
wheeler models. TVS displayed its new 250 cc street fighter concept motorcycle at the 2014 Indian
Auto Expo. Named as the Draken X-21, this TVS motorcycle concept model is still in the early
stages of development and is expected to come in its production form towards the end of this year.
The TVS Draken X-21 concepts styling cues and features have sparked the audience’s interest, and
it clearly indicates that it will be featuring superb technological advancements and emerge as an
innovative product in the Indian bike market. The concept model also offers a sneak peak at the
upcoming next generation Apache RTR models’ design language. It will be introduced by this

27
year’s end in the Indian motorcycle market and is expected to be primarily targeted at the young
urban Indian audience. The new TVS Draken 250 cc Concept motorcycle model is powered by an
efficient 249.2 cc, 4 strokes, and single-cylinder 4 valves liquid cooled DOHC motor. This petrol
engine has the capability of churning out a max power output of 38.5 bhp at 12,000 rpm and a peak
torque of 23 Nm at 9,500 rpm. The motor is paired to a 6 speed transmission gearbox. TVS India
claims that the Draken will be offering a fuel efficiency of 33.3 km per liter. Though it is too early
to comment on the TVS Draken 250 cc Concept’s performance, the bike is expected to offer power
packed performance coupled with good handling and manoeuvrability. It is fitted with petal disk
brakes for both its front and rear wheels, while inverted telescopic fork and an off-set mono shock
suspension system do the duty at its front and rear respectively.

28
B) MILESTONES OF TVS MOTORS:

All new TVS Phoenix 125 launched


2014-15 Star City+ launched
TVS Scooty Zest 110 launched
2013 TVS Jupiter launched
2012 TVS Phoenix 125 launched
2011 TVS Apache RTR ABS launched
2010 TVS Wego and TVS Jive launched
2009 TVS Apache RTR 180 and TVS Streak launched.
TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS
2008
King launched.
Apache RTR - first two wheeler in India to have racing inspired
2007
engine and features.
2006 Launched TVS Apache - first bike to win 6 awards in a row
Launched the revolutionary VT-I engine for the best in class
2004
mileage in TVS Centra
Launched India's first fully indigenously designed and
2001
manufactured motorcycle.
2000 Launched India's first 150 cc, 4 stroke motorcycle - The Fiero
1997 Introduced India's first 5 speed motorcycle, Shaolin
Introduced India's first catalytic converter enabled motorcycle, the
1996
110 cc Shogun
Launched India's First indigenous scooterette (sub - 100 cc
1994
variomatic) - TVS Scooty
First Indian company to introduce 100 cc Indo - Japanese
1984
motorcycles
1980 Launched TVS 50, India's first 2 seater 50 cc moped

29
C) COMPETITORS

Bajaj Auto Ltd.

Hero Motorcorp Ltd.

Honda Motorcycle Ltd.

TVS MOTOR
COMPANIES SUZUKI
COMPETITORS

Mahendra Two- Wheeler Motorcycle Ltd

Yamaha Motor Company Ltd.

D) AWARDS:

Engineering :

The Deming Price –


TVS Motor won the Deming Application Prize in 2002,
becoming the first and only Indian two-wheeler company to win the award given to companies that do
outstanding work in the field of Quality Management. It is considered to be one of the world’s most
prestigious quality award.

30
Technology Award 2002-
From Ministry of Science, Government of India for the
successful commercialization of indigenous technology for TVS Victor.

Outstanding Design Excellence Award 2004 –


TVS Scooty Pep won the prestigious ‘Outstanding Design
Award’ from Business World magazine and National Institute of Design.

Management Award :

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
India's leading business magazines.

The ‘Good Advertising’ Award-


By Auto India Best Brand Award 2009.

Most Appealing Premium Motorcycle-

The TVS Apache RTR 180 received the highest numerical score among Premium Motorcycle in the
proprietary J.D. Power Asia Pacific 2015 India Two-Wheeler Automotive Performance, Execution and
Layout (2WAPEAL) StudySM . Study based on evaluations from 10,285 vehicle owners who purchased a
new vehicle between March 2014 and October 2014 The study includes 81 two-wheeler models from nine
makes. Proprietary study results are based on experiences and perceptions of owners surveyed in
September – December 2014.

31
Best Executive Scooter -
The TVS Wego was the highest ranked Executive Scooter in the proprietary J.D. Power Asia Pacific 2015
India Two-Wheeler Initial Quality Study (2WIQS) StudySM. Study based on evaluations from 10,285
vehicle owners who purchased a new vehicle between March 2014 and October 2014 The study includes
81 two-wheeler models from nine makes. Proprietary study results are based on experiences and
perceptions of owners surveyed in September – December 2014.

32
Most Appealing Premium Motorcycle –
The TVS Sport received the highest numerical score among Economy Motorcycle in the proprietary J.D.
Power Asia Pacific 2015 India Two-Wheeler Automotive Performance, Execution and Layout
(2WAPEAL) Studies. Study based on evaluations from 10,285 vehicle owners who purchased a new
vehicle between March 2014 and October 2014 The study includes 81 two-wheeler models from nine
makes. Proprietary study results are based on experiences and perceptions of owners surveyed in
September – December 2014.

Two Wheeler Manufacturer of the Year –

TVS Motor Company was names the Two Wheeler Manufacturer of the Year by NDTV Car and Bike
awards 2015.

Most Trusted Brand -

TVS is India's most trusted brand in the 2 wheeler category.


Source: Economic Times Most Trusted Brands survey 2012.
33
CII ITC Sustainability Awards 2012-
TVS Motor Company Ltd is a winner of the CII ITC Sustainability Awards 2012, Certificate of
Commendation for Significant Achievement.

Exports-

TVS Motor Company has been awarded 'Star Performer - Silver Shield' in two/three wheelers category,
by EEPC India, for excellent export performance for year 2007-08.

Leadership -

Star of Asia Award to Mr. Venu Srinivasan, CMD TVS Motor Company by Business Week International.
He was also honoured with Doctorate in Science by University of Warwick, United Kingdom. Mr Venu
Srinivasan was conferred with the prestigious JRD Tata Corporate Leadership Award for the year 2004.

34
E) PRODUCT PROFILE :

THE PRODUCT OF TVS COMPANY


1) MOTORCYCLE-
 TVS Star City
 TVS Star Sport
 TVS Phoenix
 TVS Centra
 TVS Fiero F2
 TVS Flame DS 125
 TVS Flame SR 125
 TVS Victor
 TVS Victor GLX
 TVS Victor EDGE
 TVS Jive
 TVS Apache RTR 160
 TVS Apache RTR 160 Hyper EDGE
 TVS Apache RTR 180
 TVS Apache RTR 180 ABS
 TVS Apache RTR 220
2) SCOOTERS-
 TVS Wego
 TVS Jupiter
3) SCOOTIES-
 TVS Pep
 TVS Pep+
 TVS Zest
4) MOPEDS-
 TVS XL HD

35
F) DEALERS OF TVS MOTOR COMPANY LTD. IN PUNE CITY:
1) THE CENTURY TVS
2) THE SHELAR TVS
1) THE CENTURY TVS :
THE CENTURY TVS was established in the 1981, considering the rising demand of two-wheelers by
the customer from all economic classes of the society. THE CENTURY is the oldest dealer of TVS Motor
Company in Pune City.
THE CENTURY TVS is the name of renowned dealer of TVS Motor located in Pune (Maharashtra). The
dealer is engaged in selling not only vehicles of TVS Motor to the customers but also the spares parts.
Vehicle that are offered include Two Wheelers. They are very customer centric organization that is why
we offer is priced very reasonably this does not mean that they are dire in terms of quality. They maintain
high quality standards as they believe that quality is the success. In other words, they offer unblemished
products to their entire clientele. They are backed by a team of professionals use their know-how in
serving all our customers in the best possible manner. All their products are applauded for their
stupendous mileage, elegant design, unique colour combination and stunning looks. Today, they have
with them a long list of customers who are very satisfied with their products and with the way they serve
them. In nutshell, with their dedication and hard work, they have preserved a rapport for us in the market
and amongst their customer as well. At THE CENTURY TVS they guarantee their customers a world
class service in both sales and servicing departments. Their highly professional sales staffs take care of all
the needs of customers. Customers are assured of excellent servicing of their vehicle by their well trained
staff.
2) THE SHELAR TVS :
THE SHELAR TVS was established in the August 15, 2000, considering the rising demand of two-
wheelers by the customer from all economic classes of the society. THE SHELAR TVS is now standing
on sound footing because of their hardship and sincere devotional effort in serving the customer on
priority basis with the quality of the vehicle supplied by the TVS Motor Company.
THE SHELAR TVS is the name of renowned dealer of TVS Motor located in Pune (Maharashtra). The
dealer is engaged in selling the vehicle of TVS Motor to all customers. Vehicle that we offer include Two
Wheelers. They are very customer centric organization that is why we offer is priced very reasonably this
does not mean that they are dire in terms of quality. They maintain high quality standards as they believe
that quality is the success. In other words, they offer unblemished products to their entire clientele. They

36
are backed by a team of professionals use their know-how in serving all our customers in the best possible
manner. All their products are applauded for their stupendous mileage, elegant design, unique colour
combination and stunning looks. Today, they have with them a long list of customers who are very
satisfied with their products and with the way they serve them. In nutshell, with their dedication and hard
work, they have preserved a rapport for us in the market and amongst their customer as well. The
company presents the vehicle in the different attractive colours and models considering the choice and
demands of the customers and for this dealer collect green card from the customers duly filled in by the
customers accordingly to their lining and suggestions, etc. This really a good effort which helps to launch
newly modified models as per the current choice of the customers in the market. At THE SHELAR TVS
they guarantee their customers a world class service in both sales and servicing departments. Their highly
professional sales staffs take care of all the needs of customers. Customers are assured of excellent
servicing of their vehicle by their well trained staff.

G) SHOWROOM/DEALER STRUCTURECHART:

The approximate selling turnover of vehicles is above 10 crores per annum apart from the selling of
spares-parts and servicing jobs. By the observation of the customers it is found that bikes and scooters are
purchased by agents, office employees, youth and students class whereas Scooty’s are by women and
girls mostly.
The dealer is careful and particular in providing all the facilities to the customers and the help in getting
insurance , RTO passing and registration of the vehicles, etc which please the customers. They adopt the

37
various schemes to attracting the customers by way of giving gifts, cash discounts, discount in
accessories, etc for the sale of vehicles. The dealers give some incentives, presents to the workers at
festival time which motivate them and increase the interest.
On minute observation it is found that the dealer is having good aim in his mind of capturing the market
and reaching the top of the competition. The customer on enquiry also expressed their full satisfaction
about the performance of the vehicles and about the after sales services by the dealers. For financially
weak customers dealers arrange spot finance and for this the help desk available in showroom. The
finance options available are TVS CREDIT, BHARTI AXA, and HDFC etc.
I think dealers deserve a complimentary remark for their healthy and proper dealing which has acquired
good market in Pune City. And it is most essential to mention here that the vehicles are of very
competitive and attractive qualities which make their sales promotion easy.

PROMOTIONAL ACTIVITIES
The promotional activities adopted by THE TVS MOTOR COMPANY in Pune City –
 Test driving
 Advertisement in Newspaper & Magazines
 Canopy
 Rally
 Tagging in vehicles
 Leaflet distribution
 Special offers on the purchase of TVS vehicles
 Exchange offer
SERVICES OFFERED -
Service after sales of bikes/scooters-
 Finance through bank (Bharti axa, HDFC etc.)
 Free checkups campaigns
 Acceptance of warranty claims
 5% discount on the spare parts
 Free polish
 10% discount on labour charges (*for extra work)
 July monsoon campaigns

38
CHAPTER 3

RESEARCH & METHODOLOGY

39
RESEARCH METHODOLOGY :
A research process consists of stages/steps that guide the project from its conception through the
final analysis, recommendations and ultimate actions. The research process provides a systematic
and planned approach to the research project and ensures that all the aspects of the research project
are consistent with each other.
RESEARCH PROCESS-
The research process has four distinct interrelated steps for research analysis. It is logical ordering-
1) Determination of research problem
2) Decide research design
3) Determination of sample plan & size
4) Collection of data
5) Analysis & Interpretation
6) Report
Each step is viewed as a separate process that includes a combination of task, step and specific procedure.
The steps undertakes logical, objective, systematic, reliable, ongoing.

A) RESEARCH DESIGN
1) EXPLORATARY RESEARCH-
The method I used for exploratory research was
a) Primary data
b) Secondary data
PRIMARY DATA
New data gathered to help to solve the problem at hand. As compared to secondary data which is
previously gathered data. The primary data is directly collected from the respondents through interview,
observation, survey and questionnaires, sampling. In present case primary data is collected by filling
customer satisfaction form from the respondents i.e. from the Customer of TVS MOTOR COMPANY. It
is original in nature.
SECONDARY DATA-
Information that already exists somewhere, have been collected for another purpose. The sources of
secondary data are documents records, census materials, Indices, books and websites etc. In present, the
secondary data is collected through the annual report and charts of the company.

40
2) DESCRIPTIVE RESEARCH-
STEPS in descriptive research-
a) Identification of information needed to solve the problem
b) Selection instruments for gathering the information
c) Identification of target population and determination of sampling plan
d) Design of procedure for information collection
e) Collection of information
f) Analysis of information
g) Generalization and prediction

B) DETERMINATION OF THE SAMPLE PLAN & SAMPLE SIZE


SAMPLE PLAN-
Sampling is a selection of some part of an aggregate or totality on the basis of which a judgment
or inference about the aggregate or totality is made. Simply it is a process of obtaining information
about an entire population by examining only a part of it. Sampling can save time and money. Here
some samples are collected for the study. The different types of sampling methods are as below:
1. CONVENIENCE SAMPLING :
Convenience sampling is also known as purposive or no probability sampling. This sampling method
involve purposive/convenience selection of particular units of the universe for constituting a sample
which represents the universe. When population elements are selected for the inclusion in the sample
based on the cases of access, it can be also called deliberate sampling.
2. SIMPLE RANDOM SAMPLING :
This type of sampling is also known as chance sampling or probability sampling where each and every
item in the population has equal chance of inclusion in the sample and each one of the possible
samples, in case of finite universe, has the same probability of being selected.
Tool-Questionnaire :
While preparation the questions for the questionnaire the respondent’s knowledge of subject,
ability, willingness, etc. Must be weighted properly. Design of Questionnaire is the most critical and
most important part of the study. The actual study will start with designing the Questionnaire; the
proper questionnaire should be designed considering various services, requirements of customer. The
questionnaire designed for study is includes in Annexure.

41
SAMPLE SIZE-
I have targeted105 people in the group above 18 years for the purpose of research. The
target population influences the sample size. The target population represent the PUNE CITY region. The
people were from different professional backgrounds.

ERRORS IN THE STUDY-


 Interviewer error
 Questionnaire error
 Respondent error
 Sampling error

C) COLLECTION OF DATA-
I have adopted convenience sampling to collect the data. Data collection took place with the help of
filling the Questionnaire. The common factor in all variants of the questionnaire method is this reliance
on verbal response to questions, written and oral. I found it essential to make sure the questionnaire was
easy to read and understand to all spectrums of people in the sample.
The first-hand information was collected by making the customer who is going to plan to purchase
two-wheeler. The primary data collected by directly interacting with such potential customer. The
respondents was contacted at showroom, canopy etc. The data was collected by interacting with 105
respondents who filled the questionnaire and gave me the required necessary information the
respondent consisted of housewives, students, businessmen, professional etc. The required
information was collected by directly interacting with these respondents.

42
CHAPTER 4

DATA ANALYSIS & INTERPRETATION

43
1. How much do you travel daily (in Km)?

Distance Frequency Percent


travelled (in km)
1-10 22 21.0
10-20 25 24.0
20-30 29 28.0
30-40 20 19.0
50 & above 9 8.0
Total 105 100

Travelled

Travelled

29

25
22
20

1 to 10 10 to 20 20 to 30 30 to 40 50 & Above

INTERPRITATION:

About 28% people prefer two-wheelers to travel 20Kms to 30Kms.

44
2. Which two-wheeler do you currently own?

Frequency Percent
Scooter 45 43.0
Motorcycle 47 45.0
Scooty 13 12.0
Total 105 100

Currently Own

Scooty
9%

Scooter
44%

Motorcycle
47%

INTERPRITATION:

About 47% people own Motorcycles and 44% people own Scooters, as compared to Scooty.

45
3) Which brand do you possess?

Brand Frequency Percent


Hero 18 17.1
Honda 18 17.1
Yamaha 13 12.4
TVS 22 21.0
Bajaj 20 19.0
Suzuki 14 13.3
Total 105 100.0

BRANDS

Suzuki Hero
13% 17%

Bajaj
19% Honda
17%

Yamaha
TVS
13%
21%

INTERPRITATION:

There is no much difference in the possession of brands of two-wheelers.


All brands are equally preferred, only 21% people prefer TVS two-wheelers.

46
4) Do the various schemes associated with TVS affect your purchase?

Opinion Frequency Percent


Yes 80 76.0
No 25 24.0
Total 105 100

OPINION

NO
4%

YES
96%

INTERPRITATION:

About 96 % people’s two-wheeler buying decisions depends on the promotional schemes of TVS.

47
5) Have you seen any Promotional Scheme of TVS?

Opinion Frequency Percent


Yes 80 76.0
No 25 24.0
Total 105 100

Promotional Scheme

No
14%

Yes
86%

INTERPRITATION:

About 86 % people have seen promotional schemes of TVS.

48
Which Promotional Scheme you like the most

Schemes Frequency Percent


Canopy 35 39.0
Test Drive 18 20.0
Offers 12 13.0
Discount in 20 22.0
Accessories
Any Other 5 6.0
Total 90 100

SCHEMES
Any Other
6%

Discount in
Accessories Canopy
22% 39%

Offers
13%

Test Drive
20%

INTERPRITATION:
About 39% people were like Canopy promotional scheme, because they can get much information about
the product at one place. They can also take a test drive.

49
6) What influence your decision while buying TVS two-wheeler?

Influential Frequency Percent


Factors
Mileage 19 18.0
Price 7 7.0
Appearance 8 8.0
Brand Name 5 5.0
Features 18 17.0
Advertisement 40 37.0
Any other 8 8.0
Total 105 100

Influential Factors

Any Other Mileage


8% 18%

Price
7%
Advertisement
Appearance
37%
8%

Features
17%
Brand Name
5%

INTERPRITATION:

About 37% people depend on Advertisement while making decision for purchasing TVS two-wheeler.

50
7) What influence you to buy your preferred brand of two-wheeler?

Influential Frequency Percent


Factors
Friends 32 31.0
Neighbours 15 14.0
Advertisements 40 38.0
Self Experience 15 14.0
Any other 3 3.0
Total 105 100

Influential Factors
Any Other
3%

Self
Experience
14% Friends
31%

Advertisements
38%
Neighbours
14%

INTERPRITATION:

About 38% people depend on advertisement to buy their preferred brand of two-wheeler.

51
8) What do you think of the promotional schemes of TVS?

Influential Frequency Percent


Factors
Friends 32 31.0
Neighbours 15 14.0
Advertisements 40 38.0
Self Experience 15 14.0
Any other 3 3.0
Total 105 100

Opinion

Unsatisfactory
10%

Satisfactory
33% Impressive
57%

INTERPRITATION:
About 57%, people impressed by the promotional schemes of TVS Motor.

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9) Most preferred two-wheeler brand among people you know?

Influential Frequency Percent


Factors
Friends 32 31.0
Neighbours 15 14.0
Advertisements 40 38.0
Self Experience 15 14.0
Any other 3 3.0
Total 105 100

Preferred Brand

Any other
3%
TVS
Yamaha 21%
10%

Hero
19%

Honda
Bajaj 30%
17%

INTERPRITATION:

According to respondent, about 30% people prefer TVS two-wheeler. After the launch of TVS Jupiter.

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10) Why do you not prefer TVS?

Influential Frequency Percent


Factors
Friends 32 31.0
Neighbours 15 14.0
Advertisements 40 38.0
Self Experience 15 14.0
Any other 3 3.0
Total 105 100

Reasons for not prefering TVS

Mileage
24%

After Sales Services


30%

Performance
Appearance 17%
8%

Comfort
10% Price
11%

INTERPRITATION:
About 30% people said no to TVS because of unsatisfactory after sales services.

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CHAPTER- 5

OBSERVATION & FINDINGS

55
OBSERVATION &FINDINGS -

Based on data gathered and analysis the following observations are made-

1) Most people prefer motorcycles & scooters.

2) All the brands have more or less the same preference and there is not a big gap in the percentage of
brand preferred by people.

3) It is observed that Advertisements & promotional Schemes attract the people most.

4) The engine power is one of the important factors of buying decision.

5) Fuel efficiency is the most important factor for most of the people.

6) Most people prefer the product which is tried and tested (i.e. already bought by lot of people).

7) Promotional activities have influence on purchase decision as long as buying of two-wheeler is


concerned.

9) Most people are satisfied with their two wheeler purchase; it means people are very careful buyer when
it comes to buying of a two wheeler.

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CHAPTER 6

SUGGESTIONS

57
SUGGESTIONS & RECOMMENDATIONS

1. As word of mouth is the key factor of buying decision, the customer service should be improved.

2. Mileage is the most important factor because of high prices of fuel in India so the research team of
TVS should work on improve the fuel efficiency of their products (especially 125cc and 150cc bikes).

3. Promotional activities like canopy, rain care camps etc. most be conducted once in a year. It helps to
know the customer in a better way and also helps to increase the sales.

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CHAPTER 7

LIMITATIONS

59
LIMITATIONS:

 Time constrains for the research was 2 months.

 Sometimes the customers were so busy in buying process that they were not so serious about filling the
questionnaire.

60
CHAPTER 8

LEARNINGS FROM THE PROJECT

61
LEARNINGS FROM THE PROJECT:

1) How TVS MOTOR COMPANY promotional schemes are carried out.

2) How the company handle day to day sales operations.

3) How to promote product & services through different promotional activities.

4) How to make people aware about the product & services.

5) How to increase the brand awareness among the people.

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CHAPTER 9

CONTRIBUTION TO THE ORGANISATION

63
CONTRIBUTION TO THE ORGANISATION:

1) Enhancing sales through different promotional schemes of two-wheelers.

2) Helps the dealer to achieve their targets.

3) This study essentially provides insights for improving the service level.

4) This project helped them to increase the awareness of promotional schemes in the given area.

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CHAPTER 10

BIBLIOGRAPHY

65
BIBLIOGRAPHY:

 Information Brochure of TVS products.


 www.tvsmotor.in
 www.business-standard.com
 www.livemint.com

66
ANNEXURE

67
QUESTIONNAIRE

I am (Mithlesh Dey) a student of Sinhgad Institute of Management & Computer Application (SIMCA),
Narhe. This is a survey for academic purpose and the information shared by you will be kept confidential
and will be used for academic purposes only.

Basic Information

Name: Mr. / Mrs. / Ms

Age group:
1) <18 2) 25-35 3) 35-45 4) 45 and above

Annual income:
1) <1,00,000 2) 1,00,000 – 3,00,000 3) 3,00,000 – 6,00,000
4) 6, 00,000 & above

Questionnaire
1) How much do you travel daily (in km)?
a) 1-10 km b) 10 – 20 km c) 20 – 30 km d) 30 – 40 km e) 50
& above

2) Which two-wheeler do you currently own?


a) Scooter b) Motorcycle c) Scooty d) none

3) Which brand do you possess?


a) TVS b) Yamaha c) Bajaj d) Honda e) Hero f) other

4) Do the various promotional schemes associated with TVS affect your purchase?
a) Yes b) No

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5) Have you seen any Promotional Scheme of TVS?
a) Yes b) no
If yes, which promotional scheme you like the most?
a) Canopy b) Test drive c) offers d) Discount in accessories
e) Any Other (Please specify) ----------------------------

6) What influence your decision while buying TVS two-wheeler? (Tick as many as applicable)
a) Mileage b) Price c) Appearance d) Brand name
e) Performance f) Advertisement g) other (please specify)

7) What influence you to buy your preferred brand?


a) Friends b) Neighbours c) Advertisements d) Self Experience
e) Any other (please specify) ------------

8) What do you think of the promotional schemes of TVS?


a) Impressive b) Satisfactory C) Unsatisfactory

9) Most preferred two-wheeler Vehicles among people you know?


a) TVS b) Honda c) Bajaj d) Hero e) Yamaha
f) Any other (Please specify)

10) Why do you not prefer TVS two-wheeler?


a) Mileage b) Performance c) Price d) comfort
e) Appearance f) after sales services
g) Fewer Schemes as compared to other brands
h) Any other (Please specify) -----------------

11) Any other suggestion...........s

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