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TVS MOTORS PVT.

LTD

INDEX

1
1.Company Profile 5-9
• Domestic &International rang product 10
TVS MOTORS PVT.LTD
11
• TVS Foray
2.Board of Directors 12-14
• Awards 15-17
18
• Many first
3.Manufacturing excellence 19-20

4.Vision &Mission of Company 21-22

5.Financial Performance of the company 23-24

6.Advertising Effectiveness 25
• Advertising 26-30

i. Electric Media (Radio, TV)

ii. Print Media (Newspaper,


magazines)

iii. Outdoor and transit media


(outdoor advertising, transport
advertising)
7.Sales Promotion 31-35

8.Cross border trade 36-39

9.Consumer Attitude after sales services 40-42


• Research methodology

• Research Problem

• Scope of objective

• Limitation
10.Questionnaire 43-46
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11.Bibiography 48
TVS MOTORS PVT.LTD

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TVS MOTORS PVT.LTD

ACKNOWLEDGEMENT

I sincerely acknowledge the debt my owe from my teacher, friends and staff
of my college who have helped me in various ways for fulfilling the project.
I wish to express sincere appreciation to my guide
MR. Arvind Shorewala for channeling me in the right way to achieve my
goal.

I thank PROF. DR. JANARDHANAN K.P. (B.G.I.M.T.) for his support


throughout the whole project work.

I also thank TVS Motors Pvt. Ltd. for their moral support for me.

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TVS MOTORS PVT.LTD

PREFACE

As a part of course curriculum of Master of Business Administration


(MBA) we were asked to undergo 6 weeks summer training in any
organization so as to give us exposure to practical management to get us
familiar with various activities taking place in the organization.

I have put my sincere efforts to accomplish my objectives within the


stipulated time. Despite all limitations, obstructs, hurdles and hindrances, I
have toiled and worked to my optimum potential to achieve desired goals.
Being neophytes in the highly competitive world of business. I came across
some difficulties to make my objective a reality. Anyhow with the kind of
help and genuine interest and the guidance of my supervisor. I am presenting
this hand carved effort. I tried my level best to conduct a research to gain a
thorough knowledge
about the project on topic, “Advertising Effectiveness”. I put the best of my
efforts and have also tried to be justice with available. If anywhere
something is found unacceptable or unnecessary to the theme; you are
welcomed with your valuable suggestions.

Thanks and regards


Yours sincerely
Anuj Sharma

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TVS MOTORS PVT.LTD

Company Profile

Heritage:

TVS Group - 100 years young

The TVS group has always been inspired by a


century long mission and vision of its own
destiny. It is not just a business but a way of
doing business, which sets TVS apart from
others.
Back in 1911, to the founder of the company,
the ordinary ambitions of a bus fleet operator
or a vehicle servicing business would not
suffice. Rather, he wanted to create an
enduring business led by a family of likeminded workers and
managers united by a set of shared high principles.
Driven by this inspiration, the TVS group has today emerged
as India's leading supplier of automotive components. Today
the TVS Group is the largest automotive component
manufacturer in India, with annual turnover of more than
USD 4 billion.
The group has over 30 companies employing a work- force of
40,000 people.
Underlying the success of the group is its philosophy of
commitment to the cherished values of promoting trust,
value and customer service. This was the personal
philosophy of the Group's Founder Shri T V Sundaram
lyengar, and it remains the overarching code by which the
Group functions. Market leadership and rewards of business
have followed naturally.

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TVS MOTORS PVT.LTD

The inspirational heritage although the letters TVS


represent the initials of our founder, T V Sundaram lyengar,
to us within TVS they have always stood for Trust, Value and
Service. The founder of the company embodied these values
and set an example for all employees to emulate.
TVS believes that the success of any enterprise is built on the
solid foundation of customer satisfaction.
Continuous innovation and close customer interaction have
enabled TVS companies to stay ahead of competition. Quality
at TVS determines not only the end product but the systems,
processes and operations at all levels. The first four
companies in India, which have won the coveted Deming
Prize, are from the TVS group.
The business ranges across automobile component
manufacturing, components distribution, manufacturing of
powered two-wheelers, computer peripherals, financial
services, contract manufacturing services and software
development.

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TVS MOTORS PVT.LTD

TVS Motors
What makes TVS stand out from all other two wheeler companies in the
country is that it is without any foreign collaboration. The company was
established by T.V Sundaram Iyengar in the year 1911 and was primarily
into the production of mopeds. TVS Motor Company Limited, the flagship
company of the USD 2.2 billion TVS Group, is the third largest two-wheeler
manufacturer in India and among the top ten in the world, with an annual
turnover of over USD 650 million. The company has many first to its credit
like the introduction of the first indigenous moped and a 100 cc motorcycle
in collaboration with Japanese auto giant Suzuki. When the collaboration
ended in 2003, many thought that the company would die a natural death due
to the exit of the foreign collaborator. However the company proved its
detractors wrong by introducing the TVS Victor and rest as they say is
history. The company roped in master blaster Sachin Tendulkar for the
promotions and the sales went northwards after that. TVS Company is
aiming to capture a quarter of the total two wheeler market in the country.

Focus on Motorcycle
TVS group was a pioneer in mopeds but slowly they have shifted focus to
the motorcycle segment since the entire market seems to be moving in that
direction as consumer preferences and choices have changed with the
changing times. The company has been able to outdo itself and spring a
surprise, as many analysts felt that the company would be pushed to the
periphery of the two wheeler market. With the exit of Suzuki, many felt TVS
would have to limit itself to the moped market in the country.
The company did not have a good track record of in-house product
development as most of its' earlier ventures like the Shoaling, Shogun and
the Surpass failed to take off.
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This further heightens the importance of the success of the TVS Victor, the
company aims to become the number 2 two wheeler manufacturers in India
and also want to crack the top five in Asia. The company has products across
all categories from premium motorcycles to entry level mopeds and has
recently launched Apache in the premium segment.
Some of the models that the TVS Company produces are as follows.

Mopeds
• TVS Super XL

• TVS Scooty

Motorcycles
• TVS Fiero
• TVS Victor
• TVS Centra
• TVS Star
• TVS Apache
• TVS Pep+

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TVS MOTORS PVT.LTD

TVS Motor enters into three-wheeler business

10 March 2008

Chennai: TVS Motor Company (TVSM), the Chennai based firm, today
launched its first two-stroke 200cc auto rickshaw, TVS King, marking the
company's entry into the three-wheeler segment. The auto rickshaws will be
available in LPG and petrol versions.
The King, which has an electric start, is priced in the range of Rs90,000 to
Rs1.30 lakh (ex-showroom), the company reported. The King will be
manufactured at the TVSM Hosur factory, which has an installed capacity of
one-lakh units per year. The company plans to introduce a diesel version by
December. TVSM says the auto rickshaw is powered by a 200cc, low friction 7-
port engine, which is fuel-efficient and would run about 30 km per litre. Other
standard features of the King include, a water bottle compartment, a magazine
shelf, mobile charger, FM radio, floor mats, large tail lamps and a rear bumper,
the company reported K Stalin, minister for rural development and local
administration in Tamil Nadu, launched the vehicle in the presence of the state
transport minister, K N Nehru and TVS chairman and managing director Venu
Srinivasan.
''Styled on the lines of a car, TVS King will redefine all performance
characteristics like initial pickup and power, comfort and convenience, fuel
efficiency and safety,'' Venu Srinivasan said.
He stated that the three-wheeler business would add Rs400 crore to the top line
of the company in 18 months. TVSM has invested about Rs 120 crore in the
project and the target sales volume is expected to be 30,000 units for 2008-09,
which will include a four-stroke CNG version (to be launched in July) for places
such as Delhi, Venu Srinivasan added.
He said that the company would acquire around 30 per cent of the market share

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of three-wheelers in India in 18 months. After Chennai, the company would
launch the King in the southern region of India before making it available to
other parts of the country by December this year, Srinivasan noted.TVSM
would be make use of its existing distribution and service network in the
country, besides exporting the King to more than 20 countries, he added The
company has also tied up with insurance companies such as United India
Insurance, New India Assurance and National Assurance Company to provide
free medical cover of up to Rs30,000 per annum on a floater basis for TVS King
drivers and their families.
The owner of the vehicle will additionally be covered by a personal accident
policy for Rs.1 lakh. TVS Motor will pay the first premium for the Rs.1 lakh
cover and the beneficiaries will pay subsequent premiums of Rs240 per annum.
The company also introduced a training programmed for drivers in safety and
preventive maintenance, Srinivasan said.

History and Early Years

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


and is among the world's top ten. It is the flagship company of the parent
TVS Group employing over 40,000 people with an estimated 15 million
customers.[ It manufactures motorcycles, scooters, mopeds and auto
rickshaws. It is India's only two-wheeler company to have won the Deming
Prize awarded for commitment to quality control, received in 2002.When
TVS Motor was founded in 1978, its parent TVS Group, founded by T. V.
Sundaram Iyengar had already been in existence for 67 years. Over the years
TVS Motor has grown to be the largest in the group, both in terms of size
and turnover, with four state of the art[4] manufacturing plants in Hosur,
Mysore and Nalagarh in India and Kerrawang in Indonesia. TVS Motor is
credited with many innovations in the Indian automobile industry, notable
among them being the introduction of India's first two-seater moped, the
TVS 50cc. The company became the leader in its category of sub 100 cc
mopeds, having sold 7 million units. It also introduced the TVS Scooty,
which is India's second largest brand in the scooterette segment.

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TVS MOTORS PVT.LTD

International Range-Two Wheeler

Three Wheeler

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TVS MOTORS PVT.LTD
B

TVS makes its foray into the three-wheeler


market with TVS KING

Chennai 09, March 2008: TVS Motor Company


today scripted a new page in its history with the
formal launch of the TVS King, thus announcing
its foray into the three-wheeler market in India.
The company's latest offering was launched at a
glittering function in Chennai by Thiru M. K. Stalin,
Minister for Rural Development and Local
Administration, Government of Tamilnadu and
Thiru K N Nehru, Minister for Transport,
Government of Tamilnadu in the presence of TVS
Motor Company's Chairman Thiru Venu
Srinivasan and other dignitaries.

Launched in
LPG and
Petrol
Versions,
the TVS
King would
be India's
first 200 cc
two stroke
auto
rickshaw that will come with electric start and that
is loaded with superior features. The TVS King
promises good mileage and is fitted with a higher
capacity engine with the peak torque at lower rpm
to take care of grad ability without frequent
gearshifts. A modern low friction 7-port engine
that is high in fuel efficiency drives the TVS King.
The engine operates at Lowe
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TVS MOTORS PVT.LTD

TVS MOTOR COMPANY LIMITED

Board of Directors

VENU SRINIVASAN
Chairman & Managing Director
H. LAKSHMANAN
T. KANNAN
C. R. DUA
K. S. BAJPAI
R. RAMAKRISHNAN
PRINCE ASIRVATHAM

Audit Committee

T. KANNAN
Chairman
C.R. DUA
R. RAMAKRISHNAN
PRINCE ASIRVATHAM

Investors’ Grievance Committee

T. KANNAN
Chairman
VENU SRINIVASAN
R. RAMAKRISHNAN

President & CEO

K.N. RADHAKRISHNAN

Executive Vice President – Finance

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TVS MOTORS PVT.LTD

S.G. MURALI

Secretary

K.S. SRINIVASAN

Auditors

SUNDARAM & SRINIVASAN


Chartered Accountants,
23, Sir C.P. Ramaswamy Road,
Alwarpet, Chennai - 600 018.

Listing of shares with

Madras Stock Exchange Ltd., Chennai.


Bombay Stock Exchange Ltd., Mumbai.
The National Stock Exchange of India Ltd., Mumbai.

Share Transfer Agent

Sundaram-Clayton Limited
New No. 22, Old No. 31
Railway Colony, 3rd Street,
Mehta Nagar, Chennai - 600 029.
Tel : 044 - 2374 1889, 2374 2939
Fax: 044 - 2374 1889

Bankers

STATE BANK OF INDIA


Corporate Accounts Group Branch,
Greams Road, Chennai - 600 006.
STATE BANK OF MYSORE

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TVS MOTORS PVT.LTD
Industrial Finance Branch,
Medford Garden Road, Bangalore - 560 001.

Registered office

Jayalakshmi Estates,
29 (Old No.8), Haddows Road, Chennai - 600 006.
Tel: 044 - 2827 2233
Fax: 044 - 2825 7121

Factories

Post Box No. 4, Harita, Hosur - 635 109.


Tel : 04344 - 276780
Fax : 04344 - 276016
Post Box No. 1, Byathahalli village,
Kadakola Post, Mysore - 571 311.
Tel: 0821 - 2596560
Fax: 0821 - 2596530/2596533
Bhatian Village, Nalagarh Post & Taluk
Solan District - 174 101.
Himachal Pradesh
Tel: 01795 - 220494
Fax : 01795 – 220496

Subsidiary Companies

Sundaram Auto Components Limited, Chennai


TVS Motor Company (Europe) B.V., Amsterdam
TVS Motor (Singapore) Pte. Limited, Singapore
PT. TVS Motor Company Indonesia, Jakarta

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TVS MOTORS PVT.LTD

"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. The
award was presented by the Hon'ble President of Republic of
Maldives, Mr. Mohamed Nasheed, at a glittering function at
Maldives on 21st Feb'10"

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TVS MOTORS PVT.LTD

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

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TVS MOTORS PVT.LTD
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.

Engineering
The Deming Prize - TVS Motor Company
is the only two-wheeler company in the
world to be awarded the world's most
prestigious and coveted recognition in
Total Quality Management

Technology Award 2002 from Ministry of


Science, Government of India for the
successful commercialization of
indigenous technology for TVS Victor

Asian Network for Quality Award 2004 - TVS Scooty


Pep won the prestigious 'Outstanding Design
Excellence Award' from Business World and National
Institute of Design

Progressive Manufacturer 100 Award - TVS wins


coveted 2009 Progressive Manufacturer 100 Award for
end-to-end automation of the entire business process of
its lubricant brand, TVS TRU4
TPM Excellence Award 2008 - First category by Japan
Institute of Plant Maintenance (JiPm).

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TVS MOTORS PVT.LTD

Management
Emerging Corporate Giant in the Private
Sector awarded by The Economic Times
and the Harvard Business School
Association of India.

Best Managed Company award from


Business Today, one of India's leading
business magazines.

Most Investor friendly company by Business Today,


one of India's leading business
The 'Good Advertising' award by Auto India Best
Brand Awards 2009.
SAP ACE AWARD 2007 - The company won the SAP
ACE 2007 Award for Customer Excellence in the Most
Innovative Netweaver Category.

TEAM TECH 2007 Award - TVS Motor Company


bags TEAM TECH 2007 Award of Excellence for
Integrated use of Computer Aided Engineering
Technologies.

Many firsts to the Automotive Industry in India


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TVS has been at the forefront in bringing a revolution


in the way personal commutation was happening, way
back in the 1980s. Beginning with launching a simple,
easy-to-use moped for the middle class in India in the
1980s to launching 7 new bikes in a single day (first
time in the history of the automotive industry in the
world), TVS has often taken the unbeaten path to
innovation.

Ushering in the personal transportation revolution

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


1980
moped
First Indian company to introduce 100 cc Indo -
1984
Japanese motorcycles
Launched India's First indigenous scooterette
1994
(sub - 100 cc variomatic) - TVS Scooty
Introduced India's first catalytic converter
1996
enabled motorcycle, the 110 cc Shogun
Introduced India's first 5 speed motorcycle,
1997
Shoaling
Launched India's first 150 cc, 4 stroke
2000
motorcycle - The Fiero
Launched India's first fully indigenously
2001
designed and manufactured motorcycle.
Launched the revolutionary VT-I engine for the
2004
best in class mileage in TVS Centra
Launched TVS Apache - first bike to win 6
2006
awards in a row
Apache RTR - first two wheeler in India to
2007
have racing inspired engine and features.
TVS Flame, TVS Scooty Electric Vehicle and
2008
Three wheeler TVS King launched.
2009 TVS Apache RTR 180 and TVS Strealaunched.

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TVS MOTORS PVT.LTD

Launch of 7 vehicles on the same day -


Manufacturing Excellence makes this feasible

At the heart of the new product launches is the


Production Team, setting to motion the dream put
forward by the R&D.

Driven by the Five Pillars of TQM

The management philosophy is based on five pillars of


TQM (Total Quality Management) which rests on the
foundation of Total Employee Involvement, daily
management and Kaizen (Continuous improvement).

The Total Employee Involvement

The Total Employee Involvement program ensures that


responsibility for the company's performance is the
shared responsibility of all levels of employees. It
provides all employees with the opportunity to be
involved in breakthrough activities and other
improvements, over and above their daily routine.

Daily work management


Daily work management consists of defining and
monitoring key processes, ensuring that they meet set
targets, detecting abnormalities and preventing their
recurrence. TVS Motor encourages continuous
improvement in all aspects of work, using Cross
Functional Teams (CFT), Supervisory Improvement
Teams (SIT) Quality Control Circles (QCC) and
suggestion schemes
The five pillars start with policy management, which is
used to arrive at the annual breakthrough objectives.
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TVS MOTORS PVT.LTD
There are generally not more than three company
objectives, arrived at after a detailed exercise, which
are deployed and reviewed periodically.

The company conducts an exhaustive range of training


programs, utilising both in-house skills and consuftants
from all over the world. The programs are conducted
for all employees, at all levels.
The Inspiration Moment
When we won the Deming Prize in Quality in 2002, we
were the only two wheeler manufacturer in the world
to have won the award. However, our penchant for
quality continues as we work in line with the principles
of Kaizen (Japanese for Continuous improvement) and
TQM (Total Quality Management).
TVS Motor company Ltd (TVS Motor)- member of the
TVS group is the largest company of the group in
terms of size and turnover.

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TVS MOTORS PVT.LTD

TVS Motor Company – Vision & Mission

We are committed to being a highly profitable, socially responsible, and


leading manufacturer of high value for money, environmentally friendly,
lifetime personal transportation products under the TVS brand, for customers
predominantly in Asian markets and to provide fulfilment and prosperity for
employees, dealers and suppliers.

Vision Statement

TVS Motor - Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its


core competence and profitability. TVS Motor will provide total customer
satisfaction by giving the customer the right product, at the right price, at the
right time.

TVS Motor - The Industry Leader


TVS Motor will be one among the top two two-wheeler manufacturers in
India and one among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian


markets, capitalizing on the expertise developed in the areas of
manufacturing, technology and marketing. The thrust will be to achieve a
significant share for international business in the total turnover.

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.
TVS Motor - Committed to Total Quality

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


perpetuity by adopting TQM as a way of life. TVS Motor believes in the
importance of the process. People and projects will be evaluated both by
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TVS MOTORS PVT.LTD
their end results and the process adopted.

TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being
is dependent on the commitment and growth of its people. There will be a
sustained effort through systematic training and planning career growth to
develop employees talents and enhance job satisfaction. TVS Motor will
create an enabling ambience where the maximum self-actualisation of every
employee is achieved. TVS Motor will support and encourage the process of
self-renewal in all its employees and nurture their sense of self worth.
TVS Motor - Responsible Corporate Citizen

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


Environmental aspects with all business activities and ensure protection of
employees and environment including development of surrounding
communities. TVS Motor strives for long-term relationships of mutual trust
and interdependence with its customers, employees, dealers and suppliers.

TVS Motor reports turnover of Rs. 3741.18 crore


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TVS MOTORS PVT.LTD
exports up 44% in FY '08-'09

Hosur, June 26, 2009: Despite the challenges brought


on by the global economic meltdown, the TVS Motor
Company (TVS) crossed several important milestones
in the financial year 2008-09. Not only was the one
millionth Scooty Pep+ rolled out from the company's
Mysore plant, the Apache brand celebrated its first
anniversary crossing the three-lakh mark. New models
were introduced in the company's premium motorcycle
and scooter segments. During the year, TVS also
expanded its presence in the Indian three-wheeler
market, adding CNG to the already-launched LPG and
Petrol versions. The company also expanded ts global
footprint to 55 countries and strengthened its
dealership network in Indonesia .

FINANCIAL PERFORMANCE:

During the year ended March 2009, TVS registered a


5% growth in sales with overall sales registering 13.42
lakh units against 12.77 lakh units in the the previous
financial year. Motorcycles accounted for 6.45 lakh
units against 6.10 lakh units in the year 2007-2008,
posting a growth of 6%. Scooters registered sales of
2.59 lakh units against 2.58 lakh units in the
corresponding period of the previous year.

TVS recorded a total revenue of Rs. 3741.18 crores for


the year ended March 2009, compared to previous
year's 3310.35 crores . Profit after tax during the year
ended March 2009 was marginally lower at Rs. 31.08
crores as against Rs. 31.77 crores recorded in the
corresponding period last year.

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TVS MOTORS PVT.LTD

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TVS MOTORS PVT.LTD
Project Report on Advertising Effectiveness [Advertising/Sales
Promotion/Sales Management/Consumer Attitude after Sales Services]

ADVERTISING EFFECTIVENESS

CONCEPTUAL STUDY OF PROMOTION MIX

People no longer buy shoes to keep there feet warm and dry. They buy them
because of the way the shoes make them feel masculine, feminine, rugged,
different, sophisticated, young, glamorous, "in" buying shoes has become an
emotional experience . Our business now is selling excitement rather than
shoes. - Francis C. Rooney

Modern marketing calls for more than developing a good product it


attractively and making it accessible to target customers. Companies must
also communicate with their present and potential customers. Every
company is inevitably cast into the role of communicator and promoter.

What is communicated however should not be left to change. To


communicate effectively; companies hire advertising agencies to develop
effective ads; sales promotion specialists to design sales incentive
programmers and public relations firms to develop the corporate image.
They train their sales people to be friendly and knowledgeable. For most
companies, the question is not whether to communicate but rather what to
say, to whom.

Promotion influences demand by communicating product and


company message to the market. A promotion Techniques involves the co-
ordination of all communication efforts aimed at a specific audience;
consumer and shareholder. The most critical promotional question is the
proper mix of advertising, personal selling, sales promotion and publicity.
The promotion mix is usually co-ordinate on a campaign basis; taking the
campaign may efforts include a total campaign with one unified theme. All
promotion messages tie in to this theme in one way or the, rather than
conflicting with it.

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TVS MOTORS PVT.LTD
ADVERTISING

The word ‘Advertising’ has its origin from a Latin word ‘Adventure’
which means to turn to. The dictionary meaning of the word is ‘to
announce publicity or to give public concerned to a specific thing which
has been announced by the advertiser publicity in order to inform and
influence them with the ideas which the advertisement carries. In business
world the terms in mainly used with reference to selling the product of the
concern.

The advertising, as Jones defines it is "a sort of machine made mass


production method of selling which supplements the voice and personality of
the individual salesman, such as manufacturing the machine supplements the
hands of the craftsman." It is thus a process of buying/sponsor/identified
media space or time in order to promote a product or an idea. From a careful
scrutiny of the above definition, the following points emerge:

Advertising is a paid form and hence commercial in nature. This any


sponsored communication designed to influence buyer behavior advertising.

Advertising is non-personal. Unlike personal selling, advertising is done in a


non-personal manner through intermediaries or media whatever the form of
advertisement (Spoken, written or visual). It is directed at a mass audience
and not directed at the individual as in personal selling.

Advertising promotes idea, goods and services. Although most advertising is


designed to help sell goods, it is being used increasingly to further public
interest goals.

Advertising is identifiable with its sponsoring authority and advertiser. It


discloses or identifies the source of opinions and ideas.

Advertising thus is:

1. Impersonal

2. A communication of ideas.

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TVS MOTORS PVT.LTD
3. Aimed at mass audience

4. By a paying sponsor.

The two forms of mass communication that are something confused with
advertising are publicity and propaganda. If we eliminate the elements of the
"paying sponsor" (The paid requirement) we would have the element of
publicity left: For publicity is technically speaking, advertisement without
payment. In a similar manner. If we eliminate the requirement of an
"identified sponsor", the resulting communication is propagandistic.

It is important for us to emphasize that advertising may involve the


communication of ideas or goods of service. We are all aware that
advertising attempts to sell goods and services. But we may overlook the
more important fact that it often sells ideas. Advertising may persuade with
information; it may persuade with emotion: more frequently, it endeavours to
persuade with some mixture of both.

(1) Electronic Media

Advertisers use two types of media to reach target consumers over the
airwaves; radio or T.V.

Radio:

Advertisers using the medium of radio may also be classified as National or


Local advertisers. The radio is a prominent vehicle of advertising in our
country and accounts for a large sum of the total advertising budget.

The radio serves principally local rather than national or large regional
markets. Many small advertisers use the radio. So do some large
organizations.

When T.V. became a factor in the advertising scene, some industry observers
felt that radio advertising might become insignificant or even disappear. This
has not been so, for radio operators have responded to the challenge by
offering programmers that features music etc. which appeal to local audience
consumers have responded very favorably to this approach. Moreover TV
does not have much coverage in our country.

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(B) Television:

Late in India, a growing class of advertising media has been the TV. In our
country, commercial advertising on TV is severely limited because broadcast
timings are only in the evenings. The TV is a unique combination timing of
sight and sound and achieves a deeper impact than the other media do. This
is particularly advantageous for advertisers whose product require
demonstration. TV advertising offers advantage of impact, mass coverage,
repetition, flexibility and prestigious. In our country not everyone has a TV
set; therefore it does not reach everyone. Moreover, in rural India where
76.31% of our population lives. There are hardly any TV sets, except at the
community centers where electricity is available. Moreover, TV
programmers in our country do not offer much selectivity. The translation is
limited, any centers do not have TV towers.

TV appeals to both the senses of sound and of sight . As a result is combines


the two to produce high-impact commercials. Finally, the fact that product or
service is promoted on TV may build a prestigious image of the product and
its sponsor. The pleasure derived from watching TV is at least potentially
transferable to the advertising message delivered through the medium.

(ii) Print Media

The print media carry their massages entirely through the visual mode. These
media consist of newspapers, magazines and direct mail.

(A) Newspaper:

A sizable share of the total advertising budget is spent on advertising in


newspapers. Newspapers in our country virtually reach most of the homes in
the cities. Since newspapers are local, marketers can easily use them to reach
particular markets. This selectivity is easily rigorous. Some are in the twelve-
hour range. From the viewpoint of the advertiser, newspaper offers several
advantage, they are local in content and appeal and provide opportunity for
direct communication between a product and its local dealers or distributors.
Because newspapers supply news, they offer an atmosphere of factual
information and of currency that may be favorable for some advertising
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TVS MOTORS PVT.LTD
situations. Advertisers can reach a very broad audience through newspapers
which offer great flexibility. The advertisers may choose the specific area to
be covered and the advertisement can be placed in newspapers at very short
notice as compared with other media.

(B) Magazines:

Magazines are also mean of reaching different market, both original and
maternal and of general and specific interest. An organization may approach
national markets through such publication as Business India, Famine, Sports
week, India Today, Business World and Film fare. Some marketers divide
their market on the basis of such variable as age, educational level and
interest magazines. Magazines are divided into those parts that serve
business, industrial consumers, ladies, sports etc. The diversity of magazines
is tremendous. Some offer news or together "General Interest" content to
huge audience. Others are highly specialized, technical or even exotic. In
general, magazines offer advertiser the opportunity to reach highly selective
audience.

The primary advantage of magazine advertising is selectivity of market


targets; quantity reproduction long life; the prestige associated with some
magazines; and the extra service offered by many publications. The quality
of magazines reproduction is usually high. Consumers sometime keep
individual copies for long period of time; reread them or pass them on to
other. Some magazines have prestige value. The marketer can cover national
or large regional markets at a low cost per contract (per individual reached).
Magazines generally offer high-quality printing of advertisement.

(iii) OUTDOOR AND TRANSIT MEDIA

(A) Outdoor Advertising:

Outdoor advertising involves the use of sign and bill-boards, posters or


displays (such as those that appear on a building’s wall) and electric
spectacular (large, illuminated, sometime animated sign and display). The
marketers may purchase billboards on the basis of showings. A showing
indicates the percentage of the total population of a particular geographic
area that will be exposed to it during one month period. The highest showing
is 100. Here the number of billboards is would attract approximately 50% of
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TVS MOTORS PVT.LTD
the local population about 20 times during a month. Sings are usually smaller
than billboards and are erected and maintained by the marketer rather than by
the advertising media.

This form of advertising has the advantage of communication quick and


simply ideas of repetition and of the ability to promote products that are
available for sales. Outdoor advertising is particularly effective in
metropolitan and other can use this medium to bring the products to the
attention of consumers or to remaining them of the product, while they are
on shopping trips or area disposed towards shopping. Advertisers may utilize
this medium to economically reach a large mass of people or small local
markets.

(B) Transport Advertising :

Transport advertising appears on the inside or outside of taxis, buses,


railways and other modes of passenger transportation. Marketers may use
transit advertisement to attain high exposure to particular groups consumers
on theory way to and from work and tourists. Repeat exposure is possible for
a majority of the people in our country use public transport basis. Transport
advertising is useful in reaching consumers at an advantageous point which
they are embarking on a shopping trip. This medium is a low cost medium.

SALES PROMOTION

According to the American Marketing Association, “Sales Promotion


consists of those marketing activities other than personal advertising and

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TVS MOTORS PVT.LTD
publicity that stimulate consumer purchasing and dealer effectiveness, such
as displays shows and expositions, demonstration and various non-recurrent
selling efforts not in the ordinary routine”.

Sales promotion activities are impersonal and usually non-recurring and are
directed at the ultimate consumers, industrial consumers and middlemen.
These activities tend to supplement the advertising and personal selling
efforts. Examples of sales promotion are free product samples, trading
stamps, store displays, premiums, coupons and trade shows. For many
organisations, including the marketers of food, toys and clothing, store
displays are an important sales promotion device. Display exposes the
promotion messages to consumers at the time and place of purchase. Such
exposure is especially important for items that are bought on impulse.
Numerous consumers products are purchased in stores that use self-service
selling method's. Marketers of such items need effective display in order to
distinguish their products from those of their rivals.

PUBLICITY

Publicity is a means of promoting the mass market and is similar to


advertising, except that it is free, is found in the editorial portion of news
media and pertains to newsworthy events. The most common type of
publicity are news release (also known as press release), photographs and
feature stories. Marketers have less control over the nature of the publicity
that their organization and products receive than they have over their
advertising, personal selling and sales promotions messages. Upon receiving
a news release, for instance, the editor or broadcast station programmed
director may choose to throw the release in the waste paper basket, change
the hording, or print or broadcast it in the original form. The disposition of
the news release is entirely in the hands of the media and cannot be dictated
by the marketer. Publicity may be negative as well as positive. Some
products and brands have received bad publicity; for example cigarettes,
wings, artificial sweeteners have been branded unsafe or unhealthy in the
publicity which they would rather have done without. Many a companies and

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TVS MOTORS PVT.LTD
trade association officials attempt to develop favorable working
relationships, with the media in order to minimize bad publicity. They realize
that such communications to the public may have every adverse impact upon
the image of the organization.

PERSONAL SELLING

Personal selling consists of persons to communication between the sales


persons and their prospects. Unlike advertising, it involves personal
interactions between the sources and the destination. Advertising aims at
grouping the shotgun approach, while personal selling aims at individuals the
right approach. Sales persons are in the position to tailor their messages
according to the unique characteristics of each prospect. Further, by
observing and listening, sales persons receive immediate feedback on the
extent to which their messages are getting across. If feedback indicates that
the message is not getting across, the sales person may quickly adjust it or
the method of its presentation.

Personal selling may be a very intense means of promotion. Consumers can


easily leave the room-during a TV commercial, ignore a store display. The
most effective method of promotion probably is to have sales person
provided that the organization has sufficient funds. The most effective
method of promotion probably is to have sales person call upon every target
consumers, for many institutions, especially those that appeal to the mass
market, this would be terribly inefficient. As a result, they employ mass
marketing techniques such as advertising, personal selling is very important
in industrial marketing.

PUBLIC RELATIONS

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TVS MOTORS PVT.LTD
Marketers engage in public relations in order to develop a favorable image of
their organization and products join the eyes of the public. They direct this
activity to parties other than target consumers. These "other" include the
public at large labor unions, the press and environmental groups. Public
relations activities include sponsoring, lobbying and using promotion
message to persuade members of the public to take up a desired position. The
term public relations refer to a firm's communication and relationships with
the various sections of the public. These sections include the organization
customers, suppliers, share holders, employees, the government, the general
public and the society in which the organization operates. Public relations
programmed may higher be formal or informal. The critical point is that
every organization, whether or not it has a formalized (organized,
programmed, should be concerned about its public relations.

ADVERTISING EFFECTIVENESS

Advertising is an art not a science. Effectiveness of which cannot be


measured with a mathematical or empirical formula some advertisers argue
that advertising efforts go to waste, but every advertiser is keenly interested
in measuring or in evaluation of ad effectiveness. Testing for the
effectiveness of ad will lead advertisement testing must be done either before
or after the ad ad has done in t he media. It is of two types, pretesting which
is done before then. Has been launched and one is referred to as cost testing
which is done before the ad has been launched and one is referred to as cost
testing which is done after launching the advertising campaign. The basic
purpose of advertising effectiveness is to avoid costly mistakes, to predict the
relative strength of alternative strength of alternative advertising strategies
and to increase their efficiency. In measurement of ad effectiveness feedback
is always useful even if it costs some extra expenditure to the advertiser.

Sales-Effect:

Communication-effect advertising research helps advertisers assess


advertising's communication effects but reveals little about its sales impact.

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TVS MOTORS PVT.LTD
What sales are generated by an ad that increases brand awareness by 20%
and brand preference by 10%?

Advertising's sales effect is generally harder to measure than its


communication effect. Sales are influenced by many factors besides
advertising, such as the product's features, price, availability and competitors'
actions. The fewer or more controllable these other factors are, the easier it is
to measure advertising's effect on sales. The sales impact is easiest to
measure in direct-marketing's effect on sales. The sales impact is easiest it is
to measure in direct-marketing situations and hardest measure in brand or
corporate-image-building advertising.

PROGRESS TESTS

These assess the various stages of buyer awareness, preference, buying


intention and the actual purchase in relation to ad. effort. They are called
sales effect tests.

Measuring Sales Response to Advertising:

Though increase in sales in the true measure of advertising effectiveness, in


reality it is difficult to measure the increase that is due to a particular
advertisement. It is rather difficult to correlate the response in sales with the
advertising programmed. However, a few methods have been discalced in
the following paragraphs which are generally used to measure the sales
response to advertising.

The Netapps Method:

The term Neaps has been framed from the term net-ad-produce-purchases.
This method, which has been developed by Daniel Starch and Staff
company, requires the measurement of both readers and non-readers who
purchased and who did not purchase the brand under investigation. The
netapps method is useful in the relative measurement of the sales-
effectiveness of various advertising approaches. But the method is subject to
a high level of false reporting and open to interviewer bias. Moreover, we
have considered advertising influence as the only factor which results in a
purchase. There may be, and often are, other variables which affect
purchases.
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TVS MOTORS PVT.LTD
Sales Results Tests:

The additional sales generated by the ads are recorded, taking several routes.

Past Sales before the ad and sales after the ad are noted. The difference is
attributed to an impact.

Controlled Experiment: In experimental market, any one element of


marketing mix is changed. It is compared with the sales of another similar
market. The element's presence observance is a reason for difference in sales.

Instead of two markets, the experiment can be carried on the two groups of
consumers.

The inventory audit is dealers inventory before and after the ad is run.

Attitude Tests

This is an indirect measurement of the post-testing effects of ads on attitudes


towards the advertised product or brands. The change in attitude as a result
of advertising is assessed. The assumption is that favorable attitude towards
the product may lead to purchases.

Most ads are designed to either reinforce or change existing attitudes. An


attitude is a favorable or unfavorable feeling about a product.

Cross-border trade among Advertiser

Most retailers use the traditional method of selling goods to consumers in


shops (79%), but a very significant number of EU retail enterprises are also
engaged in Internet-based sales (57%). This percentage gives an indication
of the potential for growth in cross-border trade. On average, retailers use at

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TVS MOTORS PVT.LTD
least two channels (2, 05) to target their customers, and one third (33%) of
EU retailers offer their products and services via three or more channels.

When analyzing the average number of distant sales channels (that is: e-
commerce, mail order, telesales, or home visits) used for retail purposes, it
appears that an average retailer in the EU offers at least one distant sales
method to consumers (1,26). Slovenian (1,84), Czech (1,82) and Austrian
(1,72) retailers put the most emphasis on utilizing multiple distant sales
channels, while those in Belgium (0,77), Finland (0,77) and France (0,82)
seem to be the least interested. Retailers who are actually involved in distant
cross-border sales are enthusiastic about the very positive effects of, and the
opportunities provided by, e-commerce on their businesses; 50% say Internet
make it much more interesting for them. Two-thirds (66%) of EU retailers
only sell in their domestic market. One-in-ten retailers (9%) within the EU-

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TVS MOTORS PVT.LTD
25 claim to be selling goods to final consumers in at least three other EU
Member States. This proportion rises to 20% of Maltese and 15% of
Luxembourgish retailers, and drops to only 3% in Finland.

Current cross-border sales to final consumers

Overall, three-in-ten enterprises interviewed in the EU (29%) claimed to be


selling cross-border to at least one other EU country. As previously stated,
9% indicated that they sell to three or more countries, the same proportion
told Euro barometer that they are trading cross-border with consumers in two
EU countries, and another 12% sell to one other EU country). Such activity
is less widespread in the new Member States (24%) than in the EU-15
(30%).
Turning to the average proportion of cross-border sales per sales channel,
answers were not weighted to reflect the market shares of the respondents,
and only respondents who were using the given channel were polled.
Therefore, they indicate the average proportion of retailers’ cross-border
sales per sales channel, and not the overall percentage of cross-border sales
compared to total sales. The highest proportion of cross-border trade in
shops is to be found in Malta and Cyprus. In Malta, 29% of income in stores
is spent by visitors, and in Cyprus, the figure is 24%. Belgian retailers also
rely significantly on incomes from tourists or other EU-foreign nationals
(22%), while the figure for
Luxembourg is 20%. Spanish retailers estimate that about 17 cents of every
euro spent, come from people visiting from another EU Member State.
Managers do not see noteworthy income from EU visitors in Slovenia (2% of
retail store income is attributed to such a source), Finland (3%), Sweden
(3%), Denmark (4%), Norway (4%) and Germany (5%). Managers of EU
retail enterprises that do use distance sales methods estimate that about 17%
of the revenue generated via distant sales channels comes from customers
living in other EU countries. The proportion of such revenue among total
distant sales revenue is the highest in Malta (48%) and Cyprus (37%), and it
is around 30% in Greece, the Czech Republic, Austria and Lithuania. At the
same time, this percentage is perceived as small by some managers,
especially in Finland (4%).
Retailers do not limit their distant sales to EU countries. However, they are
most likely to use the advantages offered by the EU Internal Market. Adding
the revenue of non-EU cross-border sales to that achieved within the
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TVS MOTORS PVT.LTD
Union shows that more than a quarter (29%) of all distant retail revenue is
coming from cross-border transactions. In other words, only 71% of all sales
via e-commerce, call centers, mail and in-home visits in the EU are

Performed domestically. Small companies usually have a somewhat higher


proportion of domestic sales as compared to medium and large enterprises
(29% of cross-border transactions of all kinds for small enterprises, and 33%
for medium and large retailers). Cross-border sales are especially important
for those enterprises. (55%), and finally the extra costs arising from cross-
border delivery (51%). Only costs arising from language differences clearly
stand out as being less important (43%). The analysis of the intensity of the
responses, confirms that the primary barrier to cross-border retailing is the
perceived fear that cross-border sales could involve a higher risk of fraud and
non-payment:
40% of retailers told Euro barometer that this is a very important obstacle to
cross-border trade.

Practical obstacles to B2C cross-border trade

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TVS MOTORS PVT.LTD
Higher risk of fraud and non-payments in cross-border

Sales Extra costs of compliance with different national fiscal


regulations (VAT rules, etc.) Greater difficulty in resolving complaints
and conflicts
Cross-border Extra costs of compliance with different national laws
Regulating consumer transactions Greater difficulty in ensuring
efficient after-sales service Extra costs arising from cross-border
delivery Costs arising from language differences.

Consumers Attitude "After Sales Services"

About TVS Motors Pvt. Ltd.

Preamble:

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TVS MOTORS PVT.LTD
Consumer Attitudes After Sales Services :- In past six years of experience
in the field of sales and services, TVS has build "Good Image" through
advertisement, but through "Word of Mouth". TVS has created "Good
Image" by continuously rendering high quality services by focusing on all
the five determinants of quality of services - Reliability, Responsiveness,
Assurance, Empathy and Tangibles. More investment has been done in
Manufacturing, training and tangibles.

Keeping pace with changing technology, the group today has widely
diversified operations, covering the entire gamut, of automobiles activities.
Each of them highly focused and operating either as a separate company or
as a separate profit centre.

This success is attributed to its satisfied customers and efficient, devoted 35


technical & support professionals.

RESEARCH METHODOLOGY

Objective

Primary:

1) To understand about derivative market


2) To study how does a derivative has the risk or position
3) To know why the derivatives is considered safer then the cash market

Secondary:

1. To understand scope of derivatives in capital market

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TVS MOTORS PVT.LTD

Research Approach:

Data collection:

1) Primary Data: - Formal and Informal Discussion with the

company guide and clients of the company.


2) Secondary Data: - Internet, Books, Newspapers, TV channels,

News Channels.

Research Problem:

There are very few ways for hedging price risk or price volatility in equity
markets and derivatives is one of them. My study is to see how derivatives
are used for hedging price risk in equity market.

Limitation:

1) As research required detail information of portfolios of clients,


which is very confidential for the company, a huge difficulty was faced in
getting the data.

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TVS MOTORS PVT.LTD
2) As the company guide was very busy in his exhausting work
schedule very less guidance was available.

Scope of study:

1) As derivatives are very vast subject the scope of research is limited to


the financial derivatives viz. future & options.

2) Forwards has been kept out of the scope of this research.

3) Since options are widely used for hedging, only the options cases have
been taken into the consideration in my research.

Questionnaire

(Sales and Marketing department)

1. What type of sales organization structure do you possess?

2. What are the various channel structures in which you operate?

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TVS MOTORS PVT.LTD

3. What are the various criterion/terms and conditions of selecting


your
Channel members?
4. What is the average Inventory Size you keep?
5. What is the average Order Cycle time?

6. What are the various modes of transportation adopted and cost?


Incurred?

7. What are the methods of measurement and frequency of


providing?
Appraisals to channel members?

8. What are the modes of by which you receive your payments:


i) Advance payment
ii) Payment on Delivery
iii) Credit
Payments
9. In case you provide the credit period, what is the time limit?
I) Upto15 days
ii) 15-30 days
iii) >30 days.
10. How frequently do you collect the feedback from your Channel
Members?
I) Weekly
ii) Quarterly
iii) Monthly
11. How will you rate and rank the following aspects of your
Channel Members?
i. Excellent
ii. Very good
iii. Good Fair
iv. Poor

12. What are the margins you provide to your Channel Members?

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TVS MOTORS PVT.LTD
13. How do you assign targets to your sales personnel’s and what
type of targets?
14. Do you support your Channel Members by promotional activities?
a) YES
b) NO
If Yes, I) Number of Promotions.
ii) Timing of Promotions.
iii) Quantity of Promotions.
15. Have you ever gone for market research?
a) YES
b) NO
If Yes, w.r.t. whom?

• Customers

• Channel Members

• General market survey


16. What type of market research was it?
What was your budget?
17. How frequently you go for market research?

18. What are the different brands which you keep in stock?

19. Which brand is most asked by the customers?


I) Hero Honda ii) Yamaha iii) other’s……………………………..

20. What is your average sales/month?

21. Which brand do you recommend to the customer and why?

22. Do you get any credit period from the company?


a) YES

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TVS MOTORS PVT.LTD
b) NO
If Yes, What is the credit period you get:
I) Upton 15 days
ii) 15-30 days
iii) >30 days
23. What is your average order size?

24. What are the margins that you get from the company?

25. What is the average order cycle time taken by the company?
I) < 5 days
ii) 5-10 days
iii) > 10 days

26. Where would you rank the services/assistance provided to you by


the
Company/s?
Very
Good
Good Satisfactory Poor Very
Poor

27. How will you rate the efficiency of your sales persons
a) Very Good
b) Good
c) Satisfactory
d) Poor
e) Very poor

28. Does company provides you with any assistance by means of


Promotional activities?
a) YES
b) NO
If Yes, Numbers, Timing, Quantity of promotions.

29. Do you provide appraisals to your sales persons?

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TVS MOTORS PVT.LTD
a) YES
b) NO
If Yes, on what Parameters?

Name of Respondent… Name of Organization… Designation:


……………………………………………………
Address:
…………………………………………………….
Tel. No.:
…………………………………………………….

THANK YOU

Bibliography:
http://www.tvsmotors.com/

http://www.tvsfinapolis.com/

http://www.sharholderstvs.com
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TVS MOTORS PVT.LTD
http://www.mutualfundsindiatvs.com/

http://www.tvsvaluresearchonline.com/

http://www.tvsfinance.com/

http://www.morningtvsstar.com/

http://finance.wikipedia.com/

http://economictimes.indiatimes.com/

http://money.rediff.com/

http://www.bseindia.com/

http://www.nseindia.com/

http://www.investopedia.com/

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