1.

0 INTRODUCTION

In today’s globalizing and continuously developing economies, the competition among

enterprises grows quickly, the market share gets narrower; and in order to gain new markets,
companies are trying to create superiority over their rivals by positioning new products
aimed at consumer behaviors and perceptions. In this sense, product positioning strategy in
marketing management has emerged and now companies conduct studies on this strategy. In
this research, product positioning strategy is emphasized and related examples are given on
the basis of Tvs.

Opens by exploring the changing relationship between customer value and how it has been
traditionally interpreted within the organization. Business leaders today acknowledge that
the traditional 4Ps approach to brand marketing needs to be transformed in order to realise a
broader vision of customer value across the organization. Argues that it is the business
leader who should be leading this transformation, as manager of the organisation’s brand
and its values, as well as challenging the marketing department to redefine its role as brand
custodians.Outlines a framework which enables senior management to develop superior
customer value through branding and positioning their organisation and to deliver this value
through its business processes. Uses practical examples to illustrate the use of this
framework and concludes by considering whether or not the traditional marketing
department is acting as a barrier when it comes to positioning and branding their
organisation.

Positioning is the fight for the consumers mind. The different marketers want to secure a
place in the mind of the target consumer. To do this the marketers use "positioning". What
this means is that the marketers want their product to come to mind when the consumer
thinks about purchasing that product type.

For example: The marketers of "Liril" soap want the people to think "Liril" when they think
soap. The marketers of "Colgate" want the consumers to think "Colgate" when they think
toothpaste etc.
 In India, "Xerox" is what comes to mind when people think of "photo-copying". "Colgate"
comes to the mind of people when they think toothpaste. However, now with intensive
competition things are changing.

Positioning a product in the minds of the consumer is becoming harder. However,

positioning is going to play a very important role in marketing in an overly competitive
environment.

Product positioning is closely related to market segment focus. Product positioning involves
creating a unique, consistent, and recognized customer perception about a firm’s offering
and image. A product or service may be positioned on the basis of an attitude or benefit, use
or application, user, class, price, or level of quality. It targets a product for specific market
segments and product needs at specific prices. The same product can be positioned in many
different ways. The figure below is taken from Philip Kotler’s book, Marketing
Management published by Prentice Hall.This two-dimensional perception map shows how
Kotler analyses the positioning of an instant breakfast drink relative to variables of the price
of the product and the speed of preparation.

Another common framework for product positioning is taken from a series of questions.
You can position a product using a positioning statement that answers these important
questions:

 For whom is the product designed?

 What kind of product is it?
 What is the single most important benefit it offers?
 Who is its most important competitor?
 How is your product different from that competitor?
 What is the significant customer benefit of that difference?

About Product Positioning and its Strategies

Positioning is a concept in marketing which was first popularized by Al Ries and Jack
Trout in their bestseller book “Positioning - a battle for your mind". According to them
‘Positioning is what you do to mind of the prospect’. They iterate that any brand is valued
by the perception it carries in the prospect or customer's mind. Each brand has thus to be
'Positioned' in a particular class or segment. Example: Mercedes is positioned for luxury
segment, Volvo is positioned for safety.

The position of a product is the sum of those attributes normally ascribed to it by the
consumers – its standing, its quality, the type of people who use it, its strengths, its
weaknesses, any other unusual or memorable characteristics it may possess, its price and the
value it represents.

Although there are different definitions of Positioning, probably the most common is: "A
product's position is how potential buyers see the product", and is expressed relative to the
position of competitors. Positioning is a platform for the brand. It facilitates the brand to get
through to the mind of the target consumer.

The position of the brand has thus to be carefully maintained and managed. Example: when
Malboro cut down its prices, its sales dropped immediately, as it began being associated
with the generic segment. Watches like Rolex are positioned as luxury segment watches,
thus they being one of the most expensive have become a symbol for accomplishment in
life. If Rolex reduces its prices, it loses its perceived image and hence is in danger of losing
its customers. This differs slightly from the context in which the term was first published in
1969 by Al Ries and Jack Troutin the paper "Positioning" is a game people play in today’s
me-too market place" in the publication

Industrial Marketing, in which the case is made that the typical consumer is overwhelmed
with unwanted advertising, and has a natural tendency to discard all information that does
not immediately find a comfortable (and empty) slot in the consumers mind. It was then
expanded into their ground-breaking first book, "Positioning: The Battle for Your Mind", in
which they define Positioning as "an organized system for finding a window in the mind. It
is based on the concept that communication can only take place at the right time and under
the right circumstances."
 POSITIONING CONCEPTS
Generally, there are three types of positioning concepts:

Functional positions

Solve problems.

Provide benefits to customers.

Get favorable perception by customers and lenders.

Symbolic positions

Self-image enhancement.

Ego identification.

Belongingness and social meaningfulness.

Affective fulfillment.

Experiential positions

Provide sensory stimulation.

Provide cognitive stimulation.

APPROACHES OF POSITIONING :-

The main positioning strategy is to either developing or reinforcing a particular image for
the brand in the mind of the customer. The main approaches to positioning strategy are:-

Customer benefits approach.

The price-quality approach.
The use or application approach.
The product user approach.
The product class approach.
The cultural symbol approach.
The competitor approach.

1. Customer benefit approach: -

This is an important positioning strategy. It involves putting the brand above competitors,
based on specific brand attributes and customer benefit. In the automobiles sector we can
see many car manufacturer give emphasis on different technical aspects such as fuel
efficiency, safety, engine performance, power windows etc. Generally marketers identify
positioning in respect of product characteristics that have been ignored by the competitor.
Often we can see that firms attempts to position their brands along with two or more
characteristic simultaneously, this is done to give an extra edge to the product from its rival
and also helps increase the product’s life cycle. Thus a single product can solve many
problem is the main theme behind the product. Example: Procter & Gamble’s Head &
shoulder shampoo functions as anti dandruff and anti hairfall shampoo.

Head & Shoulder positioned as both anti-dandruff & anti-hairfall shampoo

2. Price quality approach: -

Sometimes brands attempts to offer more in term of service, feature, quality, or
performance. Manufacturer of such brands charge higher prices partly to cover the cost and
partly to communicate the fact that they are of high quality. In fact in the same product
category there are brands, through comparable in qualities, which appeal on the basis of
price. For example brands like Rado and Timex use quality and price positioning technique
respectively. Rado competes for quality and Timex competes for price. It is difficult to use
both quality and price positioning together
because there is a risk that high quality-low price positioning technique may infer the image
of the product in the mind of the consumer.
 3. The use and application approach: - In this strategy the product is positioned with a
use or application approach. For example: - Largest Mobile manufacturer in the world
Nokia positioned its few variant of N-series mobiles as music phones with enhanced
memory and multimedia capabilities.
4. The product user approach:- In this approach, the brand identifies and determines the
target segement for which the product will be positioned. Many brand uses a model or a
celebrity to position their product. The expectation are that a model or a celebrity is likely
to influence the product’s image by reflecting their own image to it. For example:- Dabur
Chyvanprash is positioned for all age groups.

5. The product class approach:- This approach is use so that the brand is associated with a
particular product category. This is generally used when a category is too crowded. For
example:- HLL has positioned Dove toilet soap as a cleansing cream product for young
womwn with dry skin and its is positioned as a premium segment toilet soap.

6. The cultural symbol approach:- The positioning strategy is based on deeply

entrenched cultural symbol. The use of cultural symbol can help to differentiate the brand
from competitors brands. For example:- The positioning technique of Marlboro cigarettes
use the image of typical American cowboy .

7. The competitor approach:- Many brands use competitor as a dominant plank in their
campaign. These brands are positioned following its competitor. This is an offensive strategy.

PRODUCT POSITIONING PLANNING

Positions are described by variables and within parameters that are important to the customers.
Common examples are price, supporting services, quality, reliability, and value for money.
Often, customers position a product in relation to a brand or product that is especially visible to
them. This could be the market leader or any other offer with a high media exposure and an
above average marketing budget. Therefore, it is advisable to use in-depth market research to
determine relevant parameters in order to understand how customers rate different products and
marketing variables.

The number of relevant parameters is normally low. Most often, they can be described with a
two- or three-dimensional matrix. This tool to visually depict customers’ perceptions of a
product and its position is called perceptual mapping.

Normally, most suppliers in a market or in a market segment will be positioned along the
diagonal. This diagonal is called the Value-Equivalence-Line (VEL), since value and price are
balanced there.

In our example, product A is positioned unfavourably. It is too expensive for the mass market
and its quality is not good enough for the premium segment. In general, there are the following
strategies for repositioning; however, their feasibility will depend on the particular situation.

 Change the relation of price and quality for the existing brand; e.g. product relaunch with
improved characteristics
  Change the relation of price and quality by introducing a new brand; e.g. introduction of
clone under a ‘cheap’ brand or a retailers own brand

 Alter believes about the brand; e.g. image campaign, creation of a ‘hype’

 Alter believes about competitive brands; e.g. comparing advertisements

 Alter customers’ rankings of important factors; e.g. focus on additional features and
characteristics (example: car manufacturers focus on very different product characteristics in
their commercials, for instance security, fuel consumption, image, luxury interior, fun)

 Introduction of new or neglected attributes; e.g. product relaunch with new features that are
new for the whole market segment.

When planning such activities it is critical to think about possible reactions of competitors. A
shift of a product into a more favourable position in the price-quality-map above the diagonal
(e.g. into position B) will normally lead to in shift of market shares in favour of this product.
Competitors could react with a reduction of general price level, thus moving the VEL to the left.
Product B would lose its superior position.

Moreover, it is advisable to keep in mind that customer and their individual preferences of a
price-quality-combination are not distributed equally along the VEL. Neglecting the distribution
of customers could lead to the following problems:

 Positioning in a segment with very few potential customers (e.g. positioning in a middle-
segment in a market where customers prefer either the budget-product or the premium product)

 Positioning in a too low or too high price-value-combination (segments a and b in our

example). This product does not appeal to a large proportion of the market, since customers
either expect a higher quality (a) or are not willing to pay that high price.

ISSUES IN PRODUCT POSITIONING

The main issues in product positioning are:

1. Where is the new offer going to compete? As what?
2. Which product function/customer need is it trying to meet?
3. What other product categories serve this need? In other words, what are the substitute
products that serve the same need?
4. Where the real gap is, where is such a new offer welcome and wanted by the market?
5. What are the company’s competencies to fight here?
In fact, these are the issues the firm agitates in target market decision selection too. The linkage
is only natural because in product positioning, the firm is actually bridging the product offer with
the right target market.

 CRITERIA’S FOR SUCCESSFUL POSITIONING

Certain criteria are needed to be fulfilled for successful positioning are:-

Clarity: - While positioning its brand the firm must be able to position itself in both distinct
value, proposition, and to its target audience.
Consistency: - Consistency in positioning means keeping the positioning plank/bases intact for
longtime. Planks should be carefully chosen while positioning. But it does not mean that the firm
must change its positioning bases even though its survival is at stake. The firm must be flexible
to the changing environment.
Credibility: - The firm must deliver trustworthy and believable value proposition. There should
be perfect match between promise and action.
Competitiveness: - For surviving in this competitive and changing environment innovative
resources, talent pool, competitive advantage, strong financial backup etc are very important.

How is positioning related to product management?

Many products are essentially the same thing. There may be hundreds of different detergents.
However, all the detergents essentially do the same thing. They clean the clothes. Still all the
detergents are sold telling the consumer many different things. Detergents are sold telling the
consumer that their clothes will be whiter if the use this detergent. Some detergents are sold
telling the consumer that the color of the clothes will be retained or that the clothes will have a
fresh smell etc. This is basically product management for positioning.
As discussed, in positioning the marketer tries to occupy a place in the mind of the consumer.
Once the marketer decides the place he wishes to occupy, he has to change his product to reflect
the position he has chosen.

To get a complete idea consider this, suppose that there is a store selling pizza. However, the
store is not doing that well in comparison to the pizza selling giants. So the store identifies who
its target market is.

It sees that maybe it’s target market might find it convenient to have the pizza home delivered
quickly. So it decides to position itself in the minds of the consumers as the "quick home
delivery of pizza" store. Next the store changes its pizza and the packaging, labeling, brand
name, price , distribution policy etc. to represent its home delivery of pizza positioning.

Finally it launches an advertising campaign to tell the people about its unique offer and position
its self in the minds of the consumers. Sales go up and the store grows. This is more or less the
story of how Dominoes came to be.
INDUSTRY PROFILE

HISTORY OF TWO- WHEELER INDUSTRY IN INDIA

The feeling of freedom and being one with the Nature comes only from riding a two-wheeler.
Indians prefer the two wheelers because of their small manageable size, low maintenance, and
pricing and easy loan repayments. Indian streets are full of people of all age groups riding a two-
wheeler.

According to a study conducted by global consulting firm Frost and Sullivan, the two- wheeler
industry will be the fastest-growing segment of the Indian automobile industry. The study said
that of all personal transportation vehicles, the motorcycle segment will grow the fastest,
followed by passenger cars.

Automotive sales in the country will get a boost from cuts in the excise duty, new model
launches, higher disposable incomes and a changing consumer mindset.

The Indian automotive market is now a buyers market and the general economic slowdown
makes it imperative for industry participants to stay ahead of demand trends, said the firm.
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% Two wheelers
Passenger vehicles Comercial vehicles Three wheelers Series1 Two wheelers 78.63% Passenger
vehicles 10.44% Commercial vehicles 4.03% Three wheelers 3.90% Two-wheelers: Market Size
& Growth In terms of volume, 4,613,436 units of two-wheelers were sold in the country in
9MFY2005 with 256,765 units exported.

The total two-wheeler sales of the Indian industry accounted for around 77.5% of the total
vehicles sold in the period mentioned. After facing its worst recession during the early 1990s, the
industry bounced back with a 25% increase in volume sales in FY 1995. However, the
momentum could not be sustained and sales growth dipped to 20% in FY 1996 and further down
to 12% in FY 1997. The economic slowdown in FY 1998 took a heavy toll of two-wheeler sales,
with the year-on-year sales (volume) growth rate declining to 3%o that year. However, sales
picked up thereafter mainly on the strength of an increase in the disposable income of middle-
income salaried people (following the implementation of the Fifth Pay Commission's
recommendations), higher access to relatively inexpensive financing, and increasing availability
of fuel efficient two-wheeler models.

Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally
in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although,
the overall two-wheeler sales increased in FY2002, the scooter and Segmental Growth of the
Indian Two Wheeler Industry moped segments faced de-growth. FY2003 also witnessed a
healthy growth in overall two-wheeler sales led by higher growth in motorcycles even as the
sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during
FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth
while the mopeds continued to decline. Figure 1 presents the variations across various product
sub-segments of the two-wheeler industry between FY1995andFY2004

Difference between two-wheeler and passenger car prices, which makes two- wheeler the
entry level vehicles;

Changes in the demographic profile;

Increasing urbanization, which creates a need for personal transportation;

Increasing availability of fuel –efficient and low-maintenance models;

Increased availability of cheap consumer financing in the past 3-4 years;

Inadequate public transportation system, especially in the semi –urban and rural areas;

The demand for two-wheelers has been influenced by a number of factors over the past five
years. The key demand drivers for the growth of the two wheeler industry are as follows:

With the demand drivers listed here operate at the broad level, segmental demand is influenced
by segment- specific factors.

Increasing number of models with different features to satisfy diverse consumer needs.
 Steady increase in the per capita income over the past five years;

Segmental classification and Characteristics

The three main product segments in the two-wheeler category are scooters, motorcycles and
mopeds. However, in response to evolving demographics and various other factors, other sub-
segment emerged, viz scooterettes, gearless scooters, and stroke scooters.

While the first two emerged as response to response demographic changes, the introduction or 4-
stroke scooters has followed the imposition of stringent pollution controls norms in the early
2000, Besides, these prominent sub- segments, product group within these sub- segments have
gained importance in the recent years

Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past 10 years with
the preference changing from scooters and mopeds to motorcycles. The scooters segment was the
largest till FY 1998, accounting for around 42% of the two-wheeler sales (motorcycles and
mopeds accounted for 37%) and 21 % of the market respectively, that year).

However, the motorcycles segment that had witnessed high growth (since FY1994) became
larger than the scooter segment in terms of market share for the. first time in FY1999. Between
FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-
wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16%
and 5%, respectively.

Trends in Segmental Share in Industry Sales (FY1996-9MFY2005) While scooter sales

declined sharply by 28% in FY2001, motorcycle sales reported a healthy growth of 20%),
indicating a clear shift in consumer preference.

This shift, which continues, has been prompted by two major factors: Change in the country's
demographic profile, and technological advancements.
Over the past 10-15 years the demographic profile of the typical two-wheeler customer has
changed. The customer is likely to be salaried and in the first job. With a younger audience, the
attributes that are sought of a two-wheeler have also changed. Following the opening up of the
economy and the increasing exposure levels of this new target audience, power and styling are
now as important as comfort and utility.

The marketing pitch of scooters has typically emphasized reliability, price, comfort and utility
across various applications. Motorcycles, on the other hand, have been traditionally positioned as
vehicles of power and style, which are rugged and more durable.

These features have now been complemented by the availability of new designs and
technological innovations. Moreover, higher mileage offered by the executive and entry- level
models has also attracted interest of two-wheeler customer. Given this market positioning of
scooters and motorcycles, it is not surprising that the new set of customers has preferred
motorcycles to scooters. With better ground clearance, larger wheels and better suspension
offered by motorcycles, they are well positioned to capture the rising demand in rural areas
where these characteristics matter most. Scooters are perceived to be family vehicles, which
offer more functional value such as broader seat, bigger storage space and easier ride.

However, with the second-hand car market developing, a preference for used cars to new two-
wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have
witnessed a shift in preference towards gearless scooters (that are popular among women) within
the scooters segment.

Motorcycles, offer higher fuel efficiency, greater acceleration and more environment-
friendliness. Given the declining difference in prices of scooters and motorcycles in the past few
years, the preference has shifted towards motorcycles.

Besides a change in demographic profile, technology and reduction in the price difference
between motorcycles and scooters, another factor that has weighed in favour of motorcycles is
the high re-sale value they offer. Thus, the customer is willing to pay an up-front premium while
purchasing a motorcycle in exchange for lower maintenance and a relatively higher resale value.
Supply Manufacturers, the Indian two-wheeler industry is highly concentrated, with three
players- Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor
Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005.

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL),
Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic
Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P)
Ltd (HMSI). Although the three players have dominated the market for a relative long period of
time, their individual market shares have undergone a major change. Bajaj Auto was the
undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes
in the country that year.

Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the
demand started shifting towards motorcycles, the company witnessed a gradual erosion of its
market share. HHML, which had concentrated on the motorcycle segment, was the main
beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to
emerge as the market leader.

TVS. On the other hand, witnessed an overall decline in market share from 22% in FY2000 to
18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till
FY2003 as it changed its product mix but has declined since then. Impact Analysis - Two
wheelers Robust demand to continue

After an 11.4 per cent growth in 2003-04, two-wheeler sales surged by over 17 per cent year-on-
year (Y-o-Y) for the first 10 months of 2004-05. Sales growth, led by the sales of motorcycles,
escalated consistently during the April to January period due to increasing household incomes,
easy availability of finance, and the success of certain new models launched during the period.

Two-wheeler demand is expected to grow at a healthy rate of 11-12 per cent from 2004- 05 to
2005-06. Rising household incomes, frequent new model launches and the increasing penetration
of finance and distribution will act as key growth drivers. The motorcycle segment witnessed
stupendous growth in 2004-05 (20.3 per cent Y-o-Y) after a moderate performance (growth of
13.7 per cent Y-o-Y) in 2003-04. The buoyant growth in this segment will be maintained on
account of the entry of global players like Honda Motors and Suzuki (entry expected in 2005)
and the domestic players' growing focus on motorcycles. The segment is expected to grow by
12-13 per cent in 2005-06.

Led by the ungeared segment, scooter sales are likely to grow by 8 per cent, while moped Sales
are expected to stagnate or decline marginally in 2005-06.

Budget Impact on the two-wheeler segment :

A. The reduction in the import duty on used two-wheelers will not affect the industry...

B. The hike in the excise duty on steel will not affect the industry, as cenvat credit can be availed
for the same.

The extension up to March 2007 of 150 per cent deduction on R&D expenditure will
marginally benefit domestic two-wheeler players, such as TVS Motors, Bajaj Auto and Kinetic.
D. The reduction in personal tax rates will increase household disposable income, which is a
positive for two-wheeler demand
COMPANY PROFILE

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-wheeler
manufacturer in India. The company manufactures a wide range of two-wheelers frommopeds to
racing inspired motorcycles. The company is having their manufacturing pla nts atHosur in
Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They are also havingone unit
located at Indonesia. Their subsidiaries include Sundaram Auto Components Ltd, TVSMotor
Company (Europe) BV, TVS Motor (Singapore) Pte Ltd, PT TVS Motor Company,Indonesia,
TVS Energy Ltd and TVS Housing Ltd. TVS Motor Company Ltd is a part ofSundaram Clayton
group in TVS group of companies. In the year 1979, Sundaram-Clayton Ltdstarted Moped
Division at Hosur to manufacture TVS 50 mopeds.

In the year 1982, the company entered into a technical know-how and assistance agreement with
Suzuki Motor Co Ltd of Japan and in the year 1985, they incorporated a new company Lakshmi
Auto Components Pvt Ltd for the manufacture of critical engines and transmission parts. In the
year 1986, the company acquired the assets of the moped division from Sundaram Clayton Ltd.
Also, the name of the company was changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki
Ltd. In the year 1992, they launched two modes of motor cycles namely, Samurai and Shogun
and in the year 1993, they launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd was
amalgamated with Sundaram Auto Engineers Ltd, an unlisted group company which was
incorporated in the year 1992.

As per the scheme, all the assets and liabilities of erstwhile TVS Suzuki Ltd together withall
obligations and contingent liabilities were vested in Sundaram Auto Engineers (India) Ltdwith
effect from April 22, 1999. This merged entity was later renamed TVS Suzuki Ltd.

TheTVS group and Suzuki Motor Corporation parted ways from their 15-year-old joint venture
onSeptember 27, 2001. The shares held by the Suzuki Motor Corporation were acquired by
AnushaInvestments Ltd, a wholly owned subsidiary of Sundaram-Clayton Ltd for Rs 9 crore.
Thus, thecompany became a subsidiary of Sundaram-Clayton Ltd with effect from November 15,
2001.Since, Suzuki Motor Corporation ceased to be a shareholder of the company, the
companycannot use the word Suzuki as the part of their name and hence the name of the
company was changed to TVS Motor Company Ltd. During the year 2002-03, the new stylish
TVS Scooty Pepand the upgraded version of Fiero was launched in the market. In April 1, 2003,
the subsidiary company namely, Lakshmi Auto Components Ltd acquired the entire paid up
capital of Sundaram Auto Components Ltd. Consequently, Sundaram Auto Components Ltd
became a subsidiary company with effect from April 1, 2003. In October 2003, the company
entered into a scheme of arrangement with Lakshmi Auto Components Ltd and Sundaram Auto
Components Ltd. As per the scheme, all the assets and liabilities of the rubber and plastic
businesses of Lakshmi Auto Components Ltd were transferred to Sundaram Auto Components
Ltd on slump sale basis on April 1, 2003 for a consideration of 12.25 crores. The remaining
business of Lakshmi Auto Components Ltd, namely engine components division together with
their investments in other bodies corporate was transferred to the company with effect from April
2,2003.

During the year 2003-04, the company launched new products such as TVS Centra, New Victor
GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they launched new productssuch
as TVS Star, New Victor GLX, New Victor GX and Scooty Pep Splash series. During theyear
2005-06, the company entered into a joint venture with Columbian party for exploring
opportunities in Columbian market with an equity investment of Rs 5 million. The company
incorporated TVS Motor Company (Europe) B V in Netherlands as a wholly owned subsidiary
of the company with an investment of Rs 91.63 crore. During the year, TVS Motor Singapore
Pte Ltd, Singapore became a wholly owned subsidiary of the company with an investment of
Rs30.51 crore. PT TVS Motor Company Indonesia was incorporated in Indonesia to manufacture
motorcycles and parts with an investment of USD 27.60 million and became subsidiary of
thecompany in view of it being the subsidiary of TVS Motor Company (Europe) B V, which
holds75% of the share capital. The remaining 25% was held by TVS Motor Singapore Pte Ltd.
PT

TVS Motor Company Indonesia has acquired lands in Indonesia for setting up a facilityfor
manufacturing two wheelers. During the year 2006-07, the company has established a newplant
in Himachal Pradesh with an annual production capacity of 4, 00,000 units scalable to 6,00,000
units. PT TVS Motor Company Indonesia, a subsidiary of the company, established
amanufacturing facility at Karawang, near Jakarta in Indonesia with production capacity of 3
lakh vehicles per annum. During the year, the company launched multiple new products and
variants such as, StaR City ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP. During
the year2007-08, the company commenced commercial production from its Nalagarh Plant
located in Himachal Pradesh. They commenced their commercial production from their state-of-
the art plant located at Karawang in Indonesia and launched TVS Neo, which is exclusively
developed for the Indonesian market.

During the year, the company launched various new products and variants such as TVSFlame,
Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS Tru4 Oil. InMarch
2008, the company launched their three wheeler, TVS King in two variants, namely twostroke
petrol and two stroke LPG. The company won the Team Tech 2007 Award of Excellence for
Integrated use of Advanced Computer Aided Engineering Technologies in product development.
.

They also won the prestigious SAP ACE 2007 Awards for Customer Excellence in the Most
Innovative Net weaver Category for several SAP implementations that are put in place. In June
2008, the company entered into a contract manufacturing arrangement with Mahabharat Motors
Manufacturing Pvt Ltd whereby TVS motor cycles will be manufactured at the latter stwo-
wheeler manufacturing facility that is located on the outskirts of Kolkata. TVS would help
Mahabharat Motors to set up the factory and provides engineering support to them.

The production would commence from June 2009. During the year 2008-09, the company
aunched Scooty Streak, a tough and trendy variant of Scooty Pep+ and Apache RTR RD,
premium segment motorcycle. Also, they launched their three-wheeler, TVS King in six states.
In June 2009, T V Sundram Iyengar & Sons Ltd and their subsidiaries acquired the holding off
oreign collaborators, Clayton Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus,
Sundaram-Clayton Ltd became a subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent
tothis acquisition; the company also became the subsidiary of TVS with effect from June 3,
2009. During the year 2009-10, the company launched TVS JIVE and TVS Wego in the market.
They also launched a four stroke three-wheeler with superior features. They commenced export
of TVS Apache to Brazil. Also, they developed a pan India presence in three-wheelers. In
December 2009, the company acquired the entire shareholding of TVS Energy Ltd. Thus, TVS
Energy became a wholly owned subsidiary of the company. In June 2010, they acquired then tire
paid up capital of TVS Housing Ltd and thus, TVS Housing Ltd became a wholly owned
subsidiary of the company

In October 2010, the company won the SAP ACE Award for Consumer Excellence 2010in Best
Run Award in Automotive category. They also won the Silver EDGE award fromInformation
Week, a leading IT magazine for in house design and development of Data Acquisition System
for improving shop floor productivity. Information Week annually recognize enterprises driving
growth and excellence through IT. In November 2010, the company launched TVS TRU4
Premium, a semi-synthetic 4T Engine Oil. In February 2011, Indian Bank signed anMoU with
the company for financing three wheelers manufactured by the company.

In March 2011, the company introduced ABS (Anti-lock Braking System) in theirpremium
segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping powerand
superior braking control that compliments its high performance capability.

INTRODUCTION TO AUTOMOBILE INDUSTRY

Indian automobile industry has grown leaps and bounds since 1898, a time when a carhad
touched the Indian streets for the first time. At present it holds a promising tenth position inthe
entire world with being number two in two wheelers and fourth in commercial vehicles.
Withstanding a growth rate of 18% per annum and an annual production of more than 2million
units,it may not be an exaggeration to say that this industry in the coming years will soon touch
afigure of 10 million units per year.

Besides a steady growth in Indias fiscal system, the expansion of Indian middle classhasalso
played a major role in drawing the attention of international auto manufacturers towardsthe
Indian Automobile Market. Moreover, India is one nation which provides skilled workforceat
cut-throat prices making itself a preferable manufacturing centre. The magnetism of the
Indianmarkets and the decline of global auto industries such as Japan Europe and US have
triggered theinflux of new conglomerates along with huge capital investments in the sector.
Overseas autoplayers like Suzuki, Hyundai, Honda, etc have their manufacturing units in India
and aremaximum utilization of their Indian functions to expand their business.
As per a recent research conducted by Deloitte, 2020 will witness the emergence of atleast one
Indian auto firm that would not only feature among the best six car manufacturers butwould also
dominate the international auto sector. Moreover, the global car sector would witness an
enourmess competence building in low priced nations like china as most of the producers would
alter based on insustrial region.

Future of Indian Automobile Market

In the financial year 2010, Automobile Industry of India is expected to witness a 10 to12%of
massive growth in its vehicles sales. As per a research conducted by Indian Auto SectorOutlook,
rivalry in the nations Automobile sector is anticipated to grow due to escalating influxof
international original equipment manufacturers (OEM).

Background

TVS Motor Company has its origin in Sundaram Clayton Limited, Moped Division,started
in1980. The factory was started in Hosur, Tamil Nadu in southern India. The first
productlaunched was a 50 cc moped, which appealed to the masses because of its capability to
carry twopeople. In the same location, the same pro motors started another company in 1984, in
collaboration with Suzuki Motor Corporation of Japa• India stands at the first rank in three-
wheeler and two-wheeler markets, second in tractor segment, fifth in commercial vehicles and
first in motor cycle manufacturing •n, for the manufacture of 100 cc motorcycles under the brand
name of Ind-Suzuki Motorcycles. Subsequently in the moped division was bought by Ind -
Suzuki Motorcycles in 1987 and the company changed its name toTVS Suzuki Ltd. Even though
the company started producing all kinds of two wheelers likemopeds, scooters and motorcycles,
the collaboration with Suzuki continued for the motor cyclesonly. The collaboration with Suzuki
Motor Corporation ended in 2001 and since then the nameof the company changed to TVS
Motor Company.

The company now develops all types of two-wheelers through its own in house R&Dfacility and
manufactures in three locations in India, Hosur in Tamil Nadu, Mysore in Karnatakaand Baddi in
Himachal Pradesh. It has recently started a new manufacturing plant in Indonesia tocater to the
Southeast Asian market. The Chairman and Managing Director of the Company isMr. Venu who
is the grandson of TV Sundaram Iyengar. It is the only automotive manufacturerin India to get
the prestigious Deming Prize. One of its subsidiaries Sundaram Clayton was thefirst company in
India to receive the Deming followed by Sundaram Brake Linings also gettingthe Deming Prize.

This prize is given to organizations or divisions of organizations that have achieveddistinctive

performance improvement through the application of TQM in a designated year.Sundaram
Clayton went on to be awarded the Japan Quality Medal.TVS Motor is the thirdlargest two-
wheeler manufacturer in India and ranks among the top ten globally. It is the firstcompany in the
world to be honored with The Deming Prize for Total Quality Management. Thecompany was
the first in India to launch 2-seater 50ccmoped and 100cc Indo-Japanese motorcycles.

Corporate profile

TVS Motor Company was incorporated in 1982. It is third largest two-wheeler manufacturer in
India and one among the top ten in the world. TVS Motor is the flag ship company of the$4
billion TVS Group.

The company manufactures a wide range of two wheelers such as mopeds, scooters and
motorcycle. It has four manufacturing facilities located at Hosur, Mysore, Himachal Pradesh and
Indonesia and a production capacity of 300 thousand units a year.

Business Growth

The two wheelers being a major part of the industry are growing strongly with the growthof
India. The reasons for the strong growth are Economic liberalization; increase in per
captaincome, various tax relief policies, easy accessibility of f inane, and launch of new models a
n dexciting discou nt offers made by dealers.

Market Share

In the two wheelers segment Hero Honda is the major company with over 50%of themarket
share (by volume). A distant second is Bajaj with about25.65 % of the market share andTVS
motors is third in the race with just over 18 % market share. Together the top three
companiesconstitute for more than 93 % of the total sales in the industry other minor players
being Honda andYamaha.

TVS Motor Company - Mission

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

high value for money, environmentally friendly, lifetime personal transportationproducts under
the TVS brand, for customers predominantly in Asian markets and to provide fulfillment 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 corecompetence and
profitability. TVS Motor will provide total customer satisfaction by giving thecustomer 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 oneamong
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 constantbenchmarking
against international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity byadopting
TQM as a way of life. TVS Motor believes in the importance of the process. People andprojects
will be evaluated both by their end results and the process adopted.

TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being isdependent on the
commitment and growth of its people. There will be a sustained effort throughsystematic training
and planning career growth to develop employees talents and enhance jobsatisfaction. TVS
Motor will create an enabling ambience where the maximum self-actualisationof 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

CitizenTVS Motor firmly believes in the integration of Safety, Health and Environmental
aspects withall business activities and ensures protection of employees and environment
includingdevelopment of surrounding communities. TVS Motor strives for long-term
relationships ofmutual trust and interdependence with its customers, employees, dealers and
suppliers.

TVS group to diversify, eyes green power

The TVS group, a leading brand in the automotive industry, is set to create its brand in‘green’
power energy through a new company. It is also eyeing the defense sector, as part of a
diversification plan, through Sundaram Clayton, a leading supplier for the automobile industry.

Speaking on the sidelines of Sundaram Clayton’s annual general meeting Venu Srinivasan,MD,
said, “We are planning to venture into green power. Our immediate focus would be windand
micro-hydro, followed by solar and biomass.”

Sundaram Clayton is planning to set up a 5 Mw wind energy farm in Tamil Nadu througha new
company, which is expected to be floated in the next six months. On the capital for thenew
company, Srinivasan said, “It’s in the drawing stage.”And, “we are talking to (the) defense
(ministry) for supplying to aviation and maritime force,”said Srinivasan.

The company’s products, including raw aluminum castings and machined castings,catering to
commercial vehicles, passenger cars and the two-wheeler industry.

Srinivasan said the proposed diversification plan would help the company reach its targetof Rs
1,000 crore turn over in five years, from Rs 492 crore last year. “To support the target, wewill
increase our foundry capacity to 50,000 tons from the current 35,000 tones, with aninvestment of
around Rs 200 crore over the next five years.”

The increase in capacity is mainly to cater to the company’s new customers, includingNissan
Motors, Daimler, BMW and others. The company, said Srinivasan, is expecting ordersworth Rs
400 crore from these majors over the next three to five years.

Awards

TVS Motor won the Deming Application Prize in 2002, becoming the first and onlyIndian two-
wheeler company to win the award given to companies that do outstanding work inthe field of
Quality Management. It is considered to be one of the worlds most prestigiousquality awards.
The same year, the work done for the TVS Victor motorcycle won TVS Motorthe National
Award for successful commercialization of indigenous technology from theTechnology
Development Board, Ministry of Science & Technology, and Government of India.In 2004, TVS
Scooty Pep won the Outstanding Design Excellence Award from BusinessWorld magazine and
the National Institute of Design, Ahmadabad. The effectiveimplementation of Total Productivity
Maintenance practices won TVS Motor the TPMExcellence Award given by the Japan Institute
of Plant Maintenance in 2008.

TVS Motor has won several management awards, notable among them being theEmerging
Corporate Giant in the Private Sector awarded by The Economic Times and theHarvard Business
School Association of India. Business Today magazine awarded TVS Motorthe Best Managed
Company and the Most Investor Friendly Company awards. Its advertisingpractices won it the
Good Advertising award by Auto India Best Brand Awards 2009. CompanyChairman Venu
Srinivasan is a recipient of several awards for corporate excellence such as theStar of Asia
Award by Bloomberg Business Week and the JRD Tata Corporate LeadershipAward. The
University of Warwick, United Kingdom gave him an honorary Doctorate ofScience degree
while the Government of India honored him with the Padma Shri, one of Indiashighest civilian
distinctions.

Innovative implementation of Information Technology has won TVS Motor the AceAward for
Most Innovative Net Weaver Implementation in 2007 awarded by technology majoR AG and the
Team Tech 2007 Award of Excellence for Integrated use of Computer-aided engineering
Technologies.

Board Of Directors

Chairman & Managing Director :Venu Srinivasan ,H Lakshmanan

Director :C.R Dua ,T.Kannan K.S Bajpai

Company Secretary :K S Srinivasan R Ramakrishnan

Director :Prince Asirvatham

The chairman Venu Srinivasan is the grandson of the TVS Groups founder, T. V. Sundaram
Iyengar.After graduating as an engineer from the University of Madras, he completed a Masters
Degreein Industrial Engineering from Purdue University in the USA.

He became the Managing Director of Sundaram Clayton Ltd. in May 1979. He went onto
become Chairman of TVS Motor Company in July 2002.

In the late 1980s, Srinivasan scripted a turnaround of the company, which was then miredin
labour trouble and was sinking into the red. Srinivasan dealt with the situation sternly and
shutthe factory down for three months, forcing the unions to relent. He then re-structured
operationsby upgrading plant machinery, investing in new technologies and implementing Total
QualityManagement practices. He also brought in Professor Lord Kumar Bhattacharyya ofthe
University of Warwick as a consultant to provide guidance. In 2001, TVS Motor Company split
with Suzuki and started manufacturing on its own. TVS Motor Company re-enteredcontention by
successfully launching Victor, Indias first indigenously built four stroke motorcycles. The slew
of launches that followed propelled TVS Motor Company to become the thirdlargest two
wheeler manufacturer in India.

Srinivasan later brought in Professor Yasutoshi Washio of Japan, a Deming ApplicationPrize

Winner and globally renowned expert in Total Quality Management and Japanese
QualityManagement Guru Prof Yoshikazu Tsuda as mentors to strengthen the TQM processes
withinthe company.

Under his leadership as the Managing Director, Sundaram Claytons brakes division wonthe
Deming Prize in 1998 for having "achieved distinctive performance improvements
throughapplication of company-wide quality control". In 2004, TVS Motor Company also won
theDeming Prize, becoming the first two-wheeler company in the world to do so.

MILESTONES OF TVS MOTORS COMPANY:

1980: Launched TVS 50, Indias first 2 seater 50 cc moped

1984: First Indian company to introduce 100 cc Indo - Japanese motorcycles

1994: Launched Indias First indigenous scooterette (sub - 100 cc variomatic) TVS Scooty.

1996: Introduced Indias first catalytic converter enabled motorcycle, the 110cc Shogun

1997: Introduced Indias first 5 speed motorcycle, Shaolin2000: Launched Indias first 150 cc, 4
stroke motorcycle - The Fiero

2001: Launched Indias first fully indigenously designed and manufactured Victor motor cycle.

2004: Launched the revolutionary VT-I engine for the best in class mileage in TVS Centra

2006: Launched TVS Apache - first bike to win 6 awards in a row

2007: Apache RTR - first two wheeler in India to have racing inspired engine and features.
2008: TVS Flame, TVS Scooty Electric Vehicle and three wheeler TVS King launched.

2009: TVS Apache RTR 180, TVS Streak and TVS Wego launched.

2010: TVS JIVE the auto clutch bike launched.

2011 TVS Apache 180 RTR ABS launched.

PRODUCT LINE

TVS motors have a range of two-wheelers under all the categories and it is the onlyIndian two-
wheeler manufacturer that has a product line of moped to a premium segment bike.
Itmanufactures moped (XL Super/Heavy Duty) and scooterettes (Scooty pep+/Streak).
Theentry/economy segment bikes are the Star duo (City/Sport/JIVE) while Flame is in the
executivesegment and Apache RTR (160/Fi-160/180/ABS) in the premium segment. Their latest
launchWEGO is a unisex scooterette.TVS is also venturing in the three-wheeler market with
King which waslaunched in 2008.

APACHE RTR 180/160 /ABS

TVS motors have come up with another variant of apache ± the RTR 180 ABS. Apache RTR has
beenvery well received by bike enthusiasts and the new RTR 180 is going to take a step further
withmore powerful engine and some interesting additions in design. The bike retains the basic
linesof the current RTR & comes with all the high tech features: digital Speedo meter with top
speed,0-60 timer, trips, and other extra functionality plus stunning looks. Apache RTR looks best
in itsclass and has been priced very competitively in comparison to other bikes in its segment.
The ApacheRTR 180 is powered by a 177.4cc engine which generates 17 Bhp of maximum
power with 15.5 Nm ofmaximum torque. The new 177.4cc mill is a bored out variation of the
160cc mill, and has a longer stroke too. Thenew engine still remains an over square unit, but not
so much so as the 160. Power is up by 1.3 Bhp to 17 Bhp andthe new engine produces 2.4 more
units of twisting force at 15.5Nm. The peak power is producedat 8500rpm, similar to RTR 160,
though the peak torque is now produced at 6500 revs. The aerodynamic airscoops add to the
design plus it ensures air is directed towards the engine unit to help bettercooling efficiency.
TVS claims the new apache RTR 180 to reach60kmph from standstill in 4.15 seconds and
topspeed as 125kph.

JIVE

TVS India has tapped the market of gearless bikes with the launch of TVS Jive. It is thefirst
Indian two-wheeler to feature automatic transmission. Jive comes with 4-speedtransmission but
features a hand-free gearshift and it comes with T-matic technology. TVS Jivecomes with gear
Indicator and under seat space which can accommodate a bottle, umbrella orany documents .In
terms of design and styling TVS Jive looks very balanced and simple, as it isa commuter bike,
the buyers dont expect lot of styling. TVS has kept it very basic and it looks like the TVSStar
City from many angles. The only change is the spruced-up tank which brings character tothe
Jive. Jive is powered by a new 110cc engine which also powers the TVS Wego. The 110cc
engine of TVSJive generates maximum power of 8.1 Bhp at 7500 rpm with 8.1 Nm of torque
at5500 rpm. TVShas good experience in manufacturing bikes with automatic clutch as they are
selling TVS Neo in Indonesia and itis selling in good numbers.

The TVS Jive features a rotary gear technology and two clutches. One of the two is anormal
multiplate job while the other one is a automatic centrifugal clutch that prevents theengine from
stalling. There is an anti-stall mechanism to boot ± which means that even when youtry to ride
along in a high gear at low speeds, the motorcycle does not sputter and stall.

Also, therotary gear system means that you can shift directly from a high gear to
neutral.Convenience-wise, the Jive is going to please a lot of new riders or people have to ride a
lot inheavy traffic.

FLAME

Flame sports a new design and embraces the contemporary black theme. Flame borrowsthe
headlamp, front fender, attractive rear view mirrors; body colored shock absorber springs
andspecial engine cowl from its big brother apache. Flame is packed with exciting features like
attractivebody graphics, alloy wheels, disc brake at the front, electric start and handle bar
weights tocontrol vibrations. It has been designed to capture attention in one go. The bike has
been given acontemporary urban look by having a black theme. The Flame is technologically the
most advanced motorcycle in the country with a 3-valve125cc engine and sports the India’s first
three-valve CC VTi (controlled combustion variable timing intelligent) engine. The engine
producesmaximum power of 10.5 bhp at 8,250 rpm. TVS has patented the CC-VTi technology in
Austria and rest ofthe world. It has sporty delta-edge exhaust that is not just a styling element but
also to deliver thesmoothest of sounds, lowest emissions and excellent performance. The engine
has two differentin take ports, swirl and power port.

A swirl motion is created of the intake air-fuel mixture in the combustion chamber, whichleads
to efficient burning of lean air-fuel mixture and helps improve the bike’s fuel efficiency.

STAR CITY/SPORTCITY

TVS India launched the upgraded and refreshed Star City in 2007. The graphic design onthe fuel
tank was replaced by new graphic pattern. A new colour option had been added and Itnow came
with a 12V mobile charger socket, placed just behind the front left indicator. This made the
StarCity the first motorcycle in India to have this feature.TVS Star city sports a new 110cc
CVTiengine with VTi technology consisting of fuel cut-off on deceleration and significantly
reducedfriction to improve the overall fuel efficiency. TVS bikes have always been known to be
tidyhandlers, and the Star City is no different, offering among the better handling traits and
ridecharacter within its segment. Riders will find the bike moulding them into an upright
andcommuter-friendly posture. The frame skeleton is a single down-tube with the engine bolted
on andoffers just the right rigidity.

The Star City continues with a rectangular section swing arm. Star City also allows ridersto
adjust the rear shock absorbers via a convenient lever with no additional tools required forthe
jstandard features like backlit speedo with fuel gauge, econometer for better mileage and
rideswitch shocks for a truly smooth ride.

SPORT

TVS expanded its economy segment offering with the launch of, Sport - a stylish, compact
andaffordable 100 cc motorcycle, aimed at discerning urban motorcycle customers who are on
thelook-out for a sleek and compact style.TVS Sport looks more or less same like the Star
City.Body panels and tail lamps received some tweaking to give sleeker and elegant
appearanceoverall from rear. The fuel tank is sleek and the dual toned side panel makes it
attractive. TVSSport is fitted with alloy wheels, broad tires and a shoe type seat which gives it a
sporty look.TVS Sport is a bike good for average users who are looking for a bike which offers
good featuresalong with decent mileage. TVS Sport is powered by a 99.7cc engine which
generates maximum power of7.5 Bhp @7500 rpm with maximum torque of 7.5 Nm @ 5000
rpm. The engine is mated to 4 speed gearbox.

The suspension has the same looks as that of the Star City, but the rear one comes with 5steps
adjustable stroke that is just a little longer than the Star City.

SCOOTY PEP+/STREAK

The Pep+ retains the familiar face with its friendly expression but gets a tangy new setof
graphics. The grab-rail also now matches its body color. Dual-tone shades spruce up the scooter
with a racychequered look on the front apron and rear panels. Grips, levers, switchgear and
mirrors are topob. Additionally, it has the option of an electric start and alloy wheels and comes
with notch. In a smart move, the key slot itself is fluorescent, so as to allow grope-free access in
thedark. Theres also a new cell phone-charging point.

Pep+ lights up its lockable under seat storage bay and offers yet another smart featurethat would
do well on any such scooterette, a spring at the mounting pivot prevents the seat from
accidentallyclosing at a fuel station and crushing unsuspecting fingers. It retains its quality feel
in offering alloy rims, both front and rear. The Plus not only feels meaty where it matters most in
its low-and midrange punch, but does manage a relatively respectable top speed of 71kph
delivered with refinement.

The Scooty was always bold offering twin telescopic forks as front suspension. While therest of
the industry sticks with diminutive and far less effective front dampers, the Pep Pluscarries
forward this handling-enhancing theme. At the rear, there is a single shock absorber doing dutyin
conjunction with its hinged engine.
STREAK

TVS after enjoying huge success with its scooty pep has now come up with a scootercalled
Scooty streak. Scooty streak is the TVS second attempt to conquer the 100cc plusscooter
customer, after its first attempt in 1999 with 150cc four stroke Spectra. The gearedscooter
spectra failed to take off in the market and it was withdrawn. Scooty streak is a 100ccplus four-
stroke scooter which is positioned above the scooty and it targets urban customers.

With the scooty streak, TVS hopes to widen its customer base. The 90cc TVS Scooty hasalways
been associated with women and the 100cc plus scooty streak could bring in malecustomers into
the fold. It inherits the styling of the popular scooty which means the Scooty streakwill not be a
full- bodied scooter. Scooty streak is a typical gearless scooter with a prominent snout,handlebar
mounted head lamp, multi-purpose die-cast rear grab rail and contoured seats. TVSScooty Streak
comes with a razor sharp, sleek unisex styling features sharp head lamps and LED tail-
lamps.Scooty streak also comes with broad anti-skid tires that provide enhanced wet braking
stabilityand is equipped with an external fuel fill at the rear for refueling. Mobile charger and
lockable front glove boxes are the other usable features in the new scooty streak.

WEGO

TVS India launched all new gearless scooters - The Wego in Nov2009. It is powered by
anew110cc engine. TVS has good experience in manufacturing scooterettes with
automatictransmission as they are selling TVS Scooty Variants in good numbers. But Scooty is
generallyconsidered by only female buyers and TVS wants to capture the market of Suzuki
Access & Honda Aviatorwhich are unisex scooter. Though Wego is not too unique and different
in terms of style andtechnology in comparison to its rivals but it can be very successful as it has
been priced verycompetitively.TVS has made use of vehicle simulation models, computational
fluid dynamicsand frequency response analysis techniques to ensure smooth and noise-free
engine and best-in-class ridecomfort and handling. The all aluminum low-friction engine ensures
best-in-class mileage.Multi-reflector halogen headlamps and LED tail lamp with optical guides
give the scooter dynamicstyling better described as urban dynamism.
XL HEAVY DUTY/SUPER

Its 70 cc engine provides easy kick start for smarter beginning. Reliability of this two-wheeler is
assured by its auto wet clutch system, wheel removal with QD wheel system,safer suspension.
The only difference between the two variants is of 9 kg weight more of TVS XLSuper HD. Its
bold tubular frame gives proper support to the riders to ride it any road condition.Night riding
becomes safer due to the presence of powerful 12V electrical system. It hasdetachable seat and
load carrier keeping in mind its passengers.
OBJECTIVES

Primary objective

 To study the product positioning of TVS

Secondary objectives

 To identify the expectation and perception of consumers towards the product

 To study the consumer satisfaction level towards TVS
 To know the consumers opinion towards TVS
LIMITATION OF THE STUDY

Even though this research have done best effort to obtain the accurate information from the
following lamination were occurred.

 Sampling size was 100 employees. Some employees didn't response to our question
because they are busy with work.
 A few respondents might have give biased information which may affect the reliability
of result
 Lack of Interest and time on the part of respondents to answer patiently.
STATEMENT OF THE PROBLEM

The product position of indicate how well a firm is doing in the market place compared to
its competitors. In this fast moving era, there has been a great demand for instant product as
result; we can see that present market is being flooded by Auto mobile companies which have
been a boon for many people.

Many leading brands in order to sustain the market the company must have good hold over
the market. In this scenario of tight competition a study was conducted to know the product
position.
RESEARCH METHODOLOGY

The objective of the current study is accomplished by conducting a market research. The market
Research process that will be adopted in the present study consist of the following stages:

Research design

The research design has been considered as a “blueprint” for research.

Here the descriptive research design is used

Sample size:

A Sample of 100 respondents was taken into consideration for my study and the data was
collected.

Sampling technique

To study the project a simple random sampling technique under lottery method is used

Period of study

The period of study for the study was a course of 2 months.

Data Collection

Collection of data was done by Questionnaires Interview Source of Data The data collected
for this project work was from two sources

1. Primary Source

2. Secondary Source.

Primary Source:

Primary data is collected from managers, employees of Tvs Some data was also collection
employees by using structured questionnaire.

Secondary Source:
The secondary data was collected by company website, books and internet, Wikipedia.

Tools used

The collected data was tabulated and analyzed using the following statistical tools is Percentage
analysis and Bar chart

Percentage of Respondent = No. Of Respondents * 100

Total No. Of Respondents

LITERATURE REVIEW
Product positioning?

Different scholars defined positioning in different ways. A “position” is a set of buyers at whom
the product is primarilyaimed (Cronshaw et al., 1990) ; the place product occupies in a given
market (Ansari et al., 1994);and is the combination of choice of target market and competitive
advantage (Hooley et al. , 2001)Positioning is the act of designing, establishing the company’s
offer and image and communicating the products’ key distinctive benefits in the market so that it
occupies a distinct and valued place in the minds of the target customers(e.g. Kotler, 1996;
Kotler& Keller, 2009)Positioning indicates how the business aspires to be perceived by the
stakeholders in relation with the competition and the marketplace (Aaker&McLoughlin, 2007).

Cravens & Piercy (2009) mentioned that positioning is deciding the desired perception/
association of an organization/ brand by customers of the target market segment and developing
the marketing program with a view to meet (or exceed) the needs and requirements of the
customers of that marketplace. The objective of positioning is to locate the brand/product in the
consumers’ minds so that organization can secure maximize potential benefits (Kotler& Keller,
2009).Marketer formulates different value propositions for positioning different brands for
different market segments. For example, Chevrolet positionedits Cobalt automobile with its
sporty styling, minimal rear seat, and small trunk to young singles; it positions its Impala, a
much larger vehicle, at the family car buyer needing a
roomier vehicle(source: Schiffman&Kanuk, 2010)
.
Why is positioning important?

Market positioning sets the competitive positioning for the product and creates a detailed
marketing mix. The outcome of positioning is the creation of an effective value proposition
which is customer oriented (Kotler& Keller, 2009).
Positioning of a brand/product helps to differentiate it from its competitors on the basis of
important attributes to the customers of the target marketplace and develops a distinctive identity
for the product/brand in the minds of
the customers (Ansari et. al.,1994);creates a unique perception in buyers’ minds of the target
market segment (Cravens & Piercy, 2009).

An effective positioning is helpful to guide marketing strategy by clarifying the brand’sessence,

what goals it helps the consumer achieve, and how it does so in a unique way (Kotler& Keller,
2009). Positioning is an important source of competitive advantage and acts as a support for
competitive advantage. (Cronshaw et al., 1990). Positioning strategy whichincludes product
strategy, distribution strategy, pricing strategy, advertising and salespromotion strategy, sales
force strategy, direct marketing strategy, and the Internet strategypoints out how (and why) the
product mix, line, or brand is to be positioned in the targetmarket segment and hence effective
targeting and positioning of the firm’s products are coredimensions of market-driven strategy
and hence are essential in gaining and sustainingsuperior performance (Cravens & Piercy, 2009)
.

How to position in the marketplace?

During 1950s marketing concepts challenged the old concepts and was focused to create
andmarket products as per customers’ needs and wants. During the 1960s and 1970s, as most
ofall major industries were over communicated with plenty of existing brands in each
productcategory, which were serving same customers’ wants. Availability of high volume of
existingproducts/brands and their advertising activities created the marketplace as noisy and
asleading brands had already made up customer’s mind and hence traditional approach
ofadvertising of new brands were unable to create a space in the market by changing the mindsof
the prospects.

Advertising became ineffective to persuade customer by highlightingproduct features or

customers’ benefit due to customers changing habit towards a satisfactorybrand instead of best
one for any product category in the already mature and complex andhence chaotic marketplace
(Trout &Ries, 1972) and hence Trout &Ries (1972) emphasized on positioning approach which
focused on competitors instead of needs and requirements ofthe customers.
Trout &Ries (1972) introduced new marketing philosophy under which, organisation
shouldconduct their marketing activities. They redefined the marketing concept by focusing
onindustry competitors instead of traditional focus on customers. By analysing and giving a lotof
real evidence from the different industrial sectors they suggested that the companies
shouldfollow positioning concept for their orientation towards the chaotic marketplace.
Theyfocused mainly on competitors as a way to position the products or brands. Whereas
Aakerand Shansby (1982) suggested that the competition is a reference point for positioning.

Despite on focusing only on competitors as suggested by Trout &Ries (1972), theyhighlighted

six strategies of positioning as- positioning by attribute, positioning byprice/quality, positioning
by use/application, positioning by product user/class of users,positioning by product class
association and positioning by competitors. Aaker and Shansby(1982) also emphasised on
identifying competitors where competitors might be primarycompetitors and secondary
competitors (e.g. For Tab, all products in diet cola category areprimary competitors and other
colas and all soft drinks are secondary competitors). They alsosuggested identifying competitors
by association of products with product situation (e.g. otherbeverages regarded as appropriate for
snack products might be the competitors of Tab). Sujan&Betman (1989) also suggested
identifying the competitive brands before going topositioning the brands.Shostack (1987)
suggested that service firms should position their products based onstructural complementarity,
structural diversity, and overall development direction. He usedtwo variables to describe service
processes. The variables are: complexity (the steps andsequences that constitute the processes)
and divergence (executional latitude or variability ofthose steps and sequences). He classified
service processes under 2 × 2 matrixes as per
following figure:

Shostack (1987) suggested four strategic directions to differentiate a service process whichare
reducing divergence (e.g. legal firms for specific service), increasing divergence (e.g.H&R
Block), reducing complexity (e.g. retailer selling ice cream only), and increasing complexity
(barbering, supermarkets). Whereas Sujan&Betman (1989), with the help ofSchema plus tag
model and Sub-typing model suggested that presence of customers’perception about strong
discrepancy helps to position a brand in a niche market segmentwhereas presence of customers’
perception about moderate discrepancy helps to differentiatea brand and depends on brand
attributes, brand evaluations and market and categoryperceptions.

Kotler (1996) emphasized on differentiation for positioning and highlighted some tools
forcompetitive differentiation like product differentiation (e.g. features, performance
quality,conformance quality, durability, reliability, repairability, style, design etc.);
servicedifferentiation (e.g. delivery, installation, customer training, consulting service, repair
etc.);personnel differentiation (e.g. competence, courtesy, credibility, reliability,
responsiveness,communication); Image differentiation (e.g. symbol, atmosphere, events etc.).
Kotler (1996)suggested that firm should bring competitive difference in a way so that it is
important,distinctive, superior, communicable, preemptive, affordable and profitable. Kotler
(1996) alsosuggested different ways of positioning a product as- attribute positioning,
benefitpositioning, use/application, user positioning, competitor positioning, product
categorypositioning, quality/price positioning. Firms should define and communicate the
similaritiesand differences between brands for positioning a brand and to take a decision
regardingpositioning firm requires determining a frame of reference by identifying the target
marketand the competition and identifying the ideal points-of-parity (category points-of-parity
whichare essential but not sufficient associations and competitive points-of-parity which
areassociations that negate competitors’ points-of-difference) and points-of-difference (e.g.Apple
for Design; Lexus for quality; Nike for performance) brand associations (Kotler&Keller, 2009)

Ansari et al. (1994) pointed out that firms select the optimal mix of tangible and
intangibleproduct attributes along with prices for positioning their brands/products in the target
market.As it is not possible to find a bundle of attributes that satisfy the needs and requirements
of allthe customers in any market place hence it is suggested to formulate value proposition
byadjusting attributes in ways so that it can attract more customers of the target marketplace
Cronshaw et al., 1990).
Role of promotional tools on positioning
As mentioned earlier that Trout &Ries (1972) suggested that the task of positioning is toposition
the product or brand in the prospects’ minds but they pointed out that advertisingbecame
ineffective to persuade customer by highlighting product features or customers’benefit due to
customers changing habit towards a satisfactory brand instead of best one forany product
category in the already mature and complex and hence chaotic marketplace.Whereas
Aaker&Shansby (1982) suggested the use of comparative advertising to aidcompetitor based
positioning (e.g. Pontiac against imported cars by comparing mileage andprice). They advised to
stick with the effective advertising (if any) and to highlight anyfeature only if it is attributed in
the product.

Sujan&Betman (1989) suggested that in order toestablish a brand in a niche market, marketer
should highlight distinguishing features duringcommunication by a single advertising whereas in
case of differentiating a brand they shoulddisperse the features across multiple
advertisings.Ambler &Vakratsas (1999) tried to find out and generalise the effects of advertising
andconcluded that main intermediate effects of advertising are experience, affect, and
cognitionwhere cognition interferes affect but the hierarchy of these three effects vary as per
contextrelated factors like product category and stage of product life cycle. The effect of short-
termpromotion is 20 times higher than that of advertising. It was noticed that response function
ofadvertising follows an inverted U shape. The effects of advertising for an established brand
inmature frequently purchased packaged goods category diminishes fast and levels off after
3exposures within a purchase cycle. Message of an ad should be familiar to be effective.
Theinfluence of ad likeability on brand preference is not supported as a general rule.
Advertisingis a promotional tool which helps to position a product/brand as it could be used to
establishpremium price in the long-run. The effect of advertising was found to last as per varied
timeand depends on model use of the study, types of the data, nature of the data source,
andproduct category. Response to advertising depends on individual and their involvement
basedon product category. Ambler &Vakratsas (1999) tried to generalize the effects of
advertisingbut the effectiveness of advertising also depends on other external information
sources like word of mouth, magazine articles, PR activities which were not discussed. Marken
(1997)suggested that both advertising and public relations play important role and each
publication'spresentation should support and reinforce the company's and product's position. He
alsosuggested that firms and their agencies should direct all of their communication efforts to
thespecific position that they want to achieve and to reinforce it with all promotional tools
(e.g.PR, advertising, sales promotion, sales contacts, on-line communications etc.). Kotler
(1996)suggested that firm needs to communicate its positioning effectively to the buyers of
thefirm’s target marketplace. And all members of the firm should have clear understanding about
the brand positioning and need to use it as content with a view to take decision (Kotler&Keller,
2009).

Positioning issues/ key points to remember while positioning

There are so many factors that a marketer needs to consider for positioning a product or
brand. The key issues or points to be remembered while positioning are briefly mentioned as
follows-
 The strategic position should resonate with customer, differentiate the firm from
itscompetitors, and reflect and supported by the culture, strategy and capabilities of
thebusiness (Aaker&McLoughlin, 2007)
 While positioning, firm should consider formulating a positioning concept for aparticular
brand only not for all the competing brands that consists of productcategory/class and
firm should follow that positioning concept over the life of thebrand/product (Cravens &
Piercy, 2009).
 Corporate/brand name should not be narrow; should reflect the vision of the firm;should
not be identical with the name of an established firm and use of initials asname is
meaningless and hence not suggested (Trout &Ries, 1972).
 Unnecessary line extension creates confusion and hence decline in market share(Trout
&Ries, 1972) but Aaker&McLoughlin (2007, p-237) pointed out that abroad product
offering indicates substance, acceptance, leadership, and often theconvenience of one-
stop shopping.
 Products should be positioned in a particular market segment as products positionedin
the wider market to appeal to all were not able to establish in the marketplace(Trout
&Ries, 1972). Treacy&Wiersema (1993) supported this as they pointed outthat industry
leaders are focused in the narrow market segment. But Miles & Slow(1978; cited by
 Morgan & Strong, 1997) pointed out that ‘Prospector’ firms areopportunistic and show
interest in new and broader markets.
 Management should not forget what made the brand successful and should not createany
confusion to the customers/prospects (Trout &Ries, 1972) and multipleconcepts may
confuse buyers and may weaken the effectiveness of positioningactions (Cravens &
Piercy, 2009)
 Management of a new brand should not try to compete on head-to-head against aproduct
leader. Focusing to a niche market or to identify a position where strongcompetitors have
weaknesses is suggested (Trout &Ries, 1972). Aaker&McLoughlin (2007, p-234) also
suggested that successful positioning can be done onthe basis of a narrow product focus.
Hamel &Prahalad (1989) pointed out that oneway to creating competitive innovation is
to identify loose bricks.
 Positioning should be in a way to adapt in the changing environment andmanagement
should be aggressive enough to utilise the opportunity (if any) bytaking flexible
strategies which are appropriate for the company (Trout &Ries,1972).
 Trout &Ries (1972) suggested that it is extremely difficult for a company serving inany
product category to establish a position in a different product category asevidence from
the industries confirmed that transfer of skills to other products or marketing situations
was not successful. This view is not always acceptable asexisting competitive
advantages could be used to build sustainability (Ghemawat,1986) and competences
could be enhanced if they are applied and shared. (Hamel &Prahalad, 1990).
 Key to success of a firm in product category is not product innovation or marketingskill
but to establish the position against any opportunity prior to competitors (Trout&Ries,
1972; Cravens & Piercy, 2009). But Aaker&McLoughlin (2007, p-231)pointed out that
perception creation is easy if firm’s offering is based on product orservice innovation.
 TABLE - 1

DISTRIBUTION OF RESPONDENTS BASED ON, HOW DO YOU COME TO KNOW

ABOUT TVS

TVS FREQUENCY PERCENTAGE

FRIENDS 9 9
ADVERTISEMENTS 32 32
REFERENCE 31 31
RELATIVES 6 6
OTHERS 8 8
DIRECT MARKETING 14 14
TOTAL 100 100

INFERENCE :

From the above table it is understood that 8% of the respondents came to

know TVS through others, 31% of the respondents came to know through reference, 32% of the
respondents came to know through advertisements, 15% of the respondents came to know
through friends and relatives and 14% of the respondents came to know through direct
marketing.
 CHART – 1

DIAGRAMATIC OF RESPONDENTS BASED ON, HOW DO YOU COME TO KNOW

ABOUT TVS

TVS

9%
14%

8% FRIENDS
ADVERTISEMENTS
REFERENCE
6% 32%
RELATIVES
OTHERS
DIRECT MARKETING

31%
 TABLE – 2

DIAGRAMATIC OF RESPONDENTS BASED ON, HOW LONG YOU ARE A

PART OF TVS

PART OF TVS FREQUENCY PERCENTAGE

I-2 YEARS 49 49
2-3YEARS 22 22

3-4YEARS 21 21

ABOVE 4YEARS 8 8

TOTAL 100 100

INFERENCE :

From the above table it is inferred that 49% of the respondents are part of
TVS for 1-2yers, 8% of the respondents for above 4 years, 21% of the respondents for 3-4 years,
22% of the respondents for 2-3 years.
 CHART – 2

DIAGRAMATIC OF RESPONDENTS BASED ON, HOW LONG YOU ARE A

PART OF TVS

PART OF TVS
60

50

40

30
PART OF TVS

20

10

0
I-2 YEARS 2-3YEARS 3-4YEARS ABOVE 4YEARS
 TABLE – 3

DISTRIBUTION OF RESPONDENTS BASED ON, WHICH COMPANY DO YOU

THINK IS OUR COMPETITOR

COMPANY FREQUENCY PERCENTAGE

HERO HONDA 13 13
ROYAL ENFILD 50 50
YAMAHA 25 25

BAJAJ 12 12
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 50% of the respondents says that
enfiled is the competitor, 25% of the respondents says yamaha, 13% says hero/honda , 12% says bajaj.
 CHART – 3

DIAGRAMMATIC REPRESENTATION OF RESPONDENTS BASED ON, WHICH

COMPANY DO YOU THINK IS OUR COMPETITOR

COMPETITOR COMPANY

12% 13%

HERO HONDA
ROYAL ENFILD
25%
YAMAHA
BAJAJ

50%
 TABLE – 4

DISTRIBUTION OF RESPONDENTS BASED ON, WHETHER THEY HAVE SEEN

THE ADVERTISEMENTS OF TVS

ADVERTISEMENTS OF FREQUENCY PERCENTAGE

TVS

YES 86 86
NO 14 14
TOTAL 100 100

INFERENCE :

From the above table it is understood that 86% of the respondents have
seen the advertisements of TVS, 14% of the respondents have not seen the advertisements of
TVS.
 CHART – 4

DIAGRAMMATIC REPRESENTATION OF RESPONDENTS BASED ON, WHETHER

THEY HAVE SEEN THE ADVERTISEMENTS OF TVS

ADVERTISEMENTS OF TVS

14%

YES
NO

86%
 TABLE – 5

DISTRIBUTION OF RESPONDENTS BASED ON, THE MEDIA THEY HAVE SEEN

THE ADVERTISEMENTS

MEDIA frequency percentage

NEWSPAPER 21 21
MAGAZINE 64 64
POSTURES 15 15
HOARDINGS 0 0
total 100 100

INFERENCE :

From the above table it is understood that 64% of the respondents

have seen advertisements through magazine, 21% through newspaper, 15% through postures and
none of the respondents through hoardings.
 CHART –5

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, THE MEDIA

THEY HAVE SEEN THE ADVERTISEMENTS

MEDIA
90
84

80

70

60

50

MEDIA
40

30 27

19
20

10
0
0
NEWSPAPER MAGAZINE POSTURES HOARDINGS
 TABLE – 6

DISTRIBUTION OF RESPONDENTS BASED ON, EFFECTIVE MARKETING

STRATEGY OF TVS

MARKETING FREQUENCY PERCENTAGE

STRATEGY
ADVERTISEMENT 52 52
NEWS PAPER 17 17
DIRECT MARKETING 11 11
TV 20 20
TOTAL 100 100

INFERENCE :

from the above table it is understood that 52% say advertisement is the
effective marketing strategy of tvs 11% of the respondents says direct marketing is the effective
marketing strategy of tvs , 17% says news papaper, 20% says tv.
 CHART – 6

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, EFFECTIVE

MARKETING STRATEGY OF TVS

MARKETING STRATEGY

20%

ADVERTISEMENT
NEWS PAPER
11% DIRECT MARKETING
52%
TV

17%
 TABLE – 7

DISTRIBUTION OF RESPONDENTS BASED ON, WHETHER THEYTHINK THE

ADVERTISEMENT IS EFFECTIVE IN INSPIRING CUSTOMERS

ADVERTISEMENT FREQUENCY PERCENTAGE

EFFECTIVE 64 64

HIGHLY EFFECTIVE 20 20
NOT EFFECTIVE 16 16
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 64% of the respondents says
advertisement are effective in inspiring customers,16% thinks not effective and 20% thinks
highly effective.
 CHART - 7

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, WHETHER

THEY THINK THE ADVERTISEMENT IS EFFECTIVE IN INSPIRING CUSTOMERS

ADVERTISEMENT

16%

EFFECTIVE
HIGHLY EFFECTIVE
20%
NOT EFFECTIVE

64%
 TABLE –8

DISTRIBUTION OF RESPONDENTS BASED ON, WHAT DO THEY VALUE MORE IN

PURCHASE DECISION

PURCHASE DECISION FREQUENCY PERCENTAGE

SERVICE SUPPORT 41 41
PRODUCT FEATURES 16 16
PRICE 29 29
RELIABILITY OF THE 14 14
COMPANY

TOTAL 100 100

INFERENCE :

From the above table it is inferred that 41% of the respondents value more
in service support, 29% value more in price, 16% values more in product features, 14% values
more in reliability of the company.
 CHART – 8

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, WHAT DO

THEY VALUE MORE IN PURCHASE DECISION

PURCHASE DECISION

14%

41% SERVICE SUPPORT

PRODUCT FEATURES
PRICE
29%
RELIABILITY OF THE COMPANY

16%
 TABLE – 9

DISTRIBUTION OF RESPONDENTS BASED ON, THE SPECIAL DIFFERENTIATER

OF TVS FROM OTHER COMPETITORS

SPECIAL FREQUENCY PERCENTAGE

DIFFERENTIATER

PRODUCT 29 29
INTEGRATION
PRICING STANDARD 14 14
SERVICE SUPPORT 19 19
OTHERS 20 20
USER FRIENDLY 18 18
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 29% of the respondents says that
the, product integration is the special differentiator of TVS from other competitors, 20% of the
respondents says , others, 19% says service support, 18% says user friendly, 14% says pricing
standard.
 CHART – 9

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, THE SPECIAL

DIFFERENTIATER OF TVS FROM OTHER COMPETITORS

SPECIAL DIFFERENTIATER
40 38

35

30
25 26
25 23

20 18

15

10 SPECIAL DIFFERENTIATER

0
 TABLE – 10

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (PRICE)

PRICE FREQUENCY PERCENTAGE

HIGHLY SATISFIED 48 48
SATISFIED 23 23
DIS SATISFIED 21 21
HIGHLY DIS SATISFIED 8 8

TOTAL 100 100

INFERENCE :

From the above table it is understood that 23% of the respondents are satisfied with the
level of satisfaction towards the TVS (price), 48% are highly satisfied, 21% are dis satisfied and
8% of the respondents are highly dis satisfied.
 CHART – 10

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (PRICE)

PRICE

8%

21%
HIGHLY SATISFIED
48% SATISFIED
DIS SATISFIED
HIGHLY DIS SATISFIED

23%
 TABLE – 11

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (USER FRIENDLY)

USER FRIENDLY FREQUENCY PERCENTAGE

HIGHLY SATISFIED 32 32
SATISFIED 63 63
DIS SATISFIED 5 5
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 63% of the respondents are satisfied with the level
of satisfaction towards the TVS (user friendly), 32% are highly dissatisfied, 5% are dissatisfied
and none of the respondents are highly dis satisfied.
 CHART – 11

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (USER FRIENDLY)

USER FRIENDLY

90
80
70
60
50
40 82
30
20 41
10
0 7
0 USER FRIENDLY
 TABLE – 12

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (SECURITY)

SECURITY FREQUENCY PERCENTAGE

HIGHLY SATISFIED 24 24
SATISFIED 66 66
DIS SATISFIED 10 10
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 66% of the respondents are satisfied with the level
of satisfaction towards the TVS (security), 24% of the respondents are highly satisfied, 10% of
the respondents are dis satisfied, none of the respondents are highly dis satisfied.
 CHART – 12

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (SECURITY)

SECURITY
90 86

80

70

60

50

40 31
SECURITY
30

20
13
10

0
0
HIGHLY
SATISFIED SATISFIED
DIS SATISFIED
HIGHLY DIS
SATISFIED
 TABLE – 13

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (PRODUCT DESIGN)

PRODUCT DESIGN FREQUENCY PERCENTAGE

HIGHLY SATISFIED 22 22
SATISFIED 70 70
DIS SATISFIED 8 8
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 70% of the respondents are satisfied with the level
of satisfaction towards the TVS (product design), 22% of the respondents are highly satisfied,
8% of the respondents are dissatisfied and none of the respondents are highly dis satisfied.
 CHART – 13

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (PRODUCT DESIGN)

PRODUCT DESIGN

0%

8%

22%

HIGHLY SATISFIED
SATISFIED
DIS SATISFIED
HIGHLY DIS SATISFIED

70%
 TABLE – 14

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (PRODUCT FEATURES)

PRODUCT FEATURES FREQUENCY PERCENTAGE

HIGHLY SATISFIED 22 22
SATISFIED 71 71

DIS SATISFIED 7 7
HIGHLY DIS SATISFIED 0 0

TOTAL 100 100

INFERENCE :

From the above table it is understood that 71% of the respondents are
satisfied with the product features, 22% of the respondents are highly satisfied, 7% of the
respondents are dis satisfied and none of the respondents are highly dis satisfied
 CHART – 14

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (PRODUCT FEATURES)

PRODUCT FEATURES
0%

7%

22%

HIGHLY SATISFIED
SATISFIED
DIS SATISFIED
HIGHLY DIS SATISFIED

71%
 TABLE – 15

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (SERVICE SUPPORT)

SERVICE SUPPORT FREQUENCY PERCENTAGE

HIGHLY SATISFIED 26 26
SATISFIED 62 62
DIS SATISFIED 12 12
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 62% of the respondents are
satisfied with the service support, 26% of the respondents are highly satisfied, 12% of the
respondents are dis satisfied and none of the respondents are highly dis satisfied.
 CHART – 15

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (SERVICE SUPPORT)

SERVICE SUPPORT
90
81
80

70

60

50

40 SERVICE SUPPORT
33
30

20 16

10
0
0
HIGHLY SATISFIED DIS SATISFIED HIGHLY DIS
SATISFIED SATISFIED
 TABLE – 16

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (MAINTANANCE)

MAINTANANCE FREQUENCY PERCENTAGE

HIGHLY SATISFIED 22 22
SATISFIED 73 73
DIS SATISFIED 5 5
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 73% of the respondents are
satisfied with the maintenance, 22% of the respondents are highly satisfied, 5% of the
respondents are dis satisfied and none of the respondents are highly dis satisfied.
 CHART – 16

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (MAINTANANCE)

MAINTANANCE
0%

5%

22%

HIGHLY SATISFIED
SATISFIED
DIS SATISFIED
HIGHLY DIS SATISFIED

73%
 TABLE – 17

DISTRIBUTION OF RESPONDENTS BASED ON, LEVEL OF SATISFACTION

TOWARDS THE TVS (COMPETENCE)

COMPETENCE FREQUENCY PERCENTAGE

HIGHLY SATISFIED 46 46
SATISFIED 35 35

DIS SATISFIED 19 19
HIGHLY DIS SATISFIED 0 0
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 46% of the respondents are highly satisfied with the
competence, 35% of the respondents are satisfied, 19% of the respondents are dis satisfied and
none of the respondents are highly dis satisfied.
 CHART – 17

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, LEVEL OF

SATISFACTION TOWARDS THE TVS (COMPETENCE)

COMPETENCE
60

50

40

30 59

46 COMPETENCE
20

10 25

0
HIGHLY 0
SATISFIED SATISFIED
DIS SATISFIED
HIGHLY DIS
SATISFIED
 TABLE – 18

DISTRIBUTION OF RESPONDENTS BASED ON, WHY DO YOU CHOOSE TVS

TVS FREQUENCY PERCENTAGE

PRICE 15 15
USER FRIENDLY 13 13
SECURITY 23 23
PRODUCT FEATURES 10 10
SERVICE SUPPORT 25 25
MAINTANANCE 14 14
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 25% of the respondents feel service support with
TVS, 23% of the respondents feel security, 15% feels price, 14% feels maintenance, 13% feels
user friendly, 10% feels product features.
 CHART – 18

DISTRIBUTION OF RESPONDENTS BASED ON, WHY DO YOU CHOOSE TVS

SIBS

14% 15%

PRICE
USER FRIENDLY
13%
SECURITY
25% PRODUCT FEATURES
SERVICE SUPPORT
MAINTANANCE

23%
10%
 TABLE – 19

DISTRIBUTION OF RESPONDENTS BASED ON, CONCERNS THEY HAVE BEFORE

PURCHASING TVS

CONCERNS FREQUENCY PERCENTAGE

FIRMS EXPERIENCE 17 17
SERVICE SUPPORT 22 22
PRICE 31 31
QUALITY 15 15
SECURITY 15 15
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 31% of the respondents are
concerned about the price, 22% about service product, 17% about firms experience, 30% about
quality and security respectively.
 CHART – 19

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, CONCERNS

THEY HAVE BEFORE PURCHASING TVS

CONCERNS

15% 17%

FIRMS EXPERIENCE
SERVICE SUPPORT
15%
PRICE
22% QUALITY
SECURITY

31%
 TABLE – 20

DISTRIBUTION OF RESPONDENTS BASED ON, WHY WOULD’NT SOME ONE BUY

TVS

TVS FREQUENCY PERCENTAGE

PRICE 12 12
USER FRIENDLY 14 14
SECURITY 9 9
PRODUCT FEATURES 22 22
SERVICE SUPPORT 27 27
MAINTANANCE 16 16
TOTAL 100 100

INFERENCE :

From the above table it is understood that 27% of the respondents didn’t
buy TVS due to service support, 9 % due to security, 16% due to maintenance, 14% due to user
friendly, 12% due to price, 22% due to product features.
 CHART – 20

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, WHY

WOULD’NT SOME ONE BUY TVS

TVS

12%
16%

PRICE
14% USER FRIENDLY
SECURITY
PRODUCT FEATURES
27% SERVICE SUPPORT
9%
MAINTANANCE

22%
 TABLE – 21

DISTRIBUTION OF RESPONDENTS BASED ON, WHETHER THEIR OVERALL

NEEDS /EXPECTATIONS ARE BEING MET BY THE TEAM

NEEDS FREQUENCY PERCENTAGE

/EXPECTATIONS
YES 89 89

NO 11 11

TOTAL 100 100

INFERENCE :

From the above table it is understood that 89% of the respondents are
saying their overall needs /expectations are being met by the team, 11 % are saying no.
 CHART – 21

DISTRIBUTION OF RESPONDENTS BASED ON, WHETHER THEIR OVERALL

NEEDS /EXPECTATIONS ARE BEING MET BY THE TEAM

NEEDS /EXPECTATIONS
140

120 116

100

80

NEEDS /EXPECTATIONS
60

40

20 14

0
YES NO
 TABLE – 22

DISTRIBUTION OF RESPONDENTS BASED ON, THEIR YOUR OVERALL OPINION

ABOUT TVS

OPINION FREQUENCY PERCENTAGE

EXCELLENT 30 30
AVERAGE 57 57
NOT SATISFIED 13 13
TOTAL 100 100

INFERENCE :

From the above table it is inferred that 30% of the respondents are having
excellent opinion about TVS, 57% are saying average, 13% are saying not satisfied.
 CHART – 22

DIAGRAMATIC REPRESENTATION OF RESPONDENTS BASED ON, THEIR YOUR

OVERALL OPINION ABOUT TVS

OPINION

13%

30%

EXCELLENT
AVERAGE
NOT SATISFIED

57%
CHISQUARE

Chisquare between Period from which a part of TVS & Advertisement is effective in
inspiring customers

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Period from which a

part of TVS *
Advertisement is 100 100.0% 0 0.0% 100 100.0%
effective in inspiring
customers
Period from which a part of TVS * Advertisement is effective in inspiring customers Crosstabulation

Advertisement is effective in inspiring Total

customers

Effective Not Effective Highly

Effective

Count 40 9 0 49
1-2 Expected
31.4 9.8 7.8 49.0
Count

Count 16 6 0 22
2-3 Expected
14.1 4.4 3.5 22.0
Count
Period from which a part
of TVS Count 5 1 15 21
3-4 Expected
13.4 4.2 3.4 21.0
Count

Count 3 4 1 8
Above 4
Years Expected
5.1 1.6 1.3 8.0
Count

Count 64 20 16 100
Total Expected
64.0 20.0 16.0 100.0
Count
Chi-Square Tests

Value df Asymp. Sig.

(2-sided)

Pearson Chi-Square 67.251a 6 .000

Likelihood Ratio 61.502 6 .000

Linear-by-Linear
27.987 1 .000
Association

N of Valid Cases 100

a. 6 cells (50.0%) have expected count less than 5. The

minimum expected count is 1.28.

INTERPRETATION :

From the above table it is revealed that the gig value is less than .05. So that there is a significant
association between Periods from which a part of TVS & Advertisement is effective in inspiring
customers.
ANOVA

ANOVA

PRICE

Sum of df Mean F Sig.

Squares Square

Between
6.135 3 2.045 2.096 .106
Groups

Within Groups 93.655 96 .976

Total 99.790 99

Interpretation

From the above table it is revealed that the sig vale is .106 which is less than .05.So that there is
difference in price for different competitor
FINDINGS

 Most of 32% of the respondents came to know about tvs through advertisements.
 Majority of 49% of the respondents are part of TVS for 1-2years
 Most of 50% of the respondents says that enfiled is the competitor
 Majority of 86% of the respondents have seen the advertisements of TVS
 Majority of 64% of the respondents have seen advertisements through magazine
 Majority of 52% say advertisement is the effective marketing strategy of tvs
 Majority of 64% of the respondents says advertisement are effective in inspiring
customers
 Most of 41% of the respondents value more in service support
 Most of 29% of the respondents says that the, product integration is the special
differentiator of TVS from other competitors
 Majority of 48% are highly satisfied with the level of satisfaction towards the TVS
(price)
 Majority of 63% of the respondents are satisfied with the level of satisfaction towards the
TVS (user friendly)
 Majority of 66% of the respondents are satisfied with the level of satisfaction towards
the TVS (security)
 Majority of 70% of the respondents are satisfied with the level of satisfaction towards the
TVS (product design)
 Majority of 71% of the respondents are satisfied with the product features
 Majority of 62% of the respondents are satisfied with the service support
 Majority of 73% of the respondents are satisfied with the maintenance
 Most of 46% of the respondents are highly satisfied with the competence
 Most of 25% of the respondents feel service support with TVS
 Most of 31% of the respondents are concerned about the price,
 Most of 27% of the respondents didn’t buy TVS due to service support
 Majority of 89% of the respondents are saying their overall needs /expectations are being
met by the team
 Most of 57% are saying average opinion about TVS.
 CHI SQUARE revealed that the gig value is less than .05. So that there is a significant
association between Periods from which a part of TVS & Advertisement is effective in
inspiring customers.
 ANOVA revealed that the sig vale is .106 which is less than .05.So that there is
difference in price for different competitor
SUGGESTION

 The best way to establish credibility is by presenting evidence. Customer reviews, testimonials,
case studies, sales numbers, and statistics are just a few methods that can be used to great
effect.
 Your target audience will dismiss your product in a heartbeat if they don’t perceive any value.
This is the most important aspect of product positioning and one of the hardest to execute
effectively. Discover the most valuable aspects of your product and then look for ways to
promise and deliver on that value.
 Unique Selling Proposition : Pinpoint exactly what makes your products and brand unique.
Then, convey those elements to your target audience. People love to have ownership in brands
and products that are different and can stand out.
 Showcase Your Expertise: Demonstrations, testing, and trials can be very effective product
positioning tools. If you’ve won awards, been highly ranked, or professionally reviewed that’s
the perfect opportunity
 Know Your Competition : Knowing the details of your competition is the key to differentiation in
product positioning. There are a few ways to differentiate your products and brand.
 Innovation. If your products are unique and memorable then you have an edge
over the competition.
 Improvement. Make a better mousetrap and market it better than the
competition.
 Core values. Stand out from the crowd with admirable core values and policies
that can’t be replicated.
CONCLUSION

Product positioning involves tailoring an entire marketing program—including product

attributes, image, and price, as well as packaging, distribution, and service—to best meet the needs of
consumers within a particular market segment.

The key to product positioning is understanding the dimensions consumers use to evaluate
competing marketing programs and make purchase decisions.

From this project its been noted that, Advertisement is the best way to reach people and its
clearly seen from the analysis that there is no Hoarding of Tvs in and around palakkad town and I
conclude that it will be one of the important positioning method to reach palakkad audience.
REFERENCE

1. Aaker, D. A. and McLoughlin, D. (2007). Strategic Market Management. West Sussex:

John Wiley & Sons Ltd., 225-245.
2. Aaker, D.A. and Shansby, J.G. (1982). Positioning your Product. Business Horizons,
May/June, 56-62.
3. Alderson, W. (1958). The Analytical Framework for Marketing. In B. M. Enis, K. Cox &
M.P. Mokwa (8th ed.), Marketing Classics (pp. 22-32). NJ: Prentice Hall.
4. Ambler, T. and Vakratsas, D. (1999). How Advertising Works: What Do We Really
Know? Journal of Marketing, 63(1), 26-43.
5. Ansari, A., Economides, N. and Ghosh, A. (1994). Competitive positioning in the market
With non uniform preferences. Marketing Science. 13(3/Summer), 248-273.
6. Cravens, D. W. and Piercy, N. F. (2009). Strategic Marketing (9th ed.). Boston:
McGraw- Hill Irwin, 193-203.
7. Cronshaw, M., Cubbin, J. and Davis, E. (1990). The importance of product positioning:
successful entry in the national newspaper market, Business Strategy Review, Autumn,
53-73.
8. Day, G. S. and Montgomery, D. B. (1999). Charting New Directions for Marketing.
Journal of Marketing, 63 (Special), 3-13.
9. Ghemawat, P. (1986). Sustainable advantage. Harvard Business Review, 64(5, Sep/Oct),
53.
10. Gronroos, C. (1994). From Marketing Mix to Relationship Marketing: Towards a
Paradigm Shift in Marketing. Management Decision, 32(2), 4-20.
11. Hamel, G. (1996). Strategy as revolution. Harvard Business Review, 74(1, Jul/Aug), 69.
12. Hamel, G. and Prahalad, C.K. (1989). Strategic intent. Harvard Business Review, 67(3),
63.
13. Hamel, G. and Prahalad, C.K. (1990). The core competence of the corporation. Harvard
Business Review, 68(3, May/Jun), 63.
14. Hooley, G., Greenley, G., Fahy, J. and Cadogan, J. (2001). Market-focused Resources,
Competitive Positioning and Firm Performance. Journal of Marketing Management, 17,
503-520.
15. Kotler, P. (1996). Marketing Management: Analysis, Planning, Implementation, and
Control (8th ed.). New Delhi: Prentice-Hall of India Private Limited, 291-313.
16. Kotler, P. and Keller, K. L. (2009). Marketing Management (13th ed.). New Jersey:
Pearson Prentice-Hall, 268-78.
17. Kotler, P. and Levy, S. J. (1969). Broadening The Concept of Marketing. In B. M. Enis,
K. Cox & M. P. Mokwa (8th ed.), Marketing Classics (pp. 44-52). NJ: Prentice Hall.
18. Levitt, T. (1960). Marketing Myopia. In B. M. Enis, K. Cox & M. P. Mokwa (8th ed.),
Marketing Classics (pp. 3-21). NJ: Prentice Hall.
19. Marken, G.A.A (1997). What Works in PR? Market Positioning Needs New Look, New
Emphasis, Public Relations Quarterly, Fall, 41-42.
20. Morgan, R. E. and Strong, C. A. (1998). Market orientation and dimensions of strategic
orientation, European Journal of Marketing, 329(11/12), 1051-1073.
21. Porter, M. E. (1996). What is strategy? Harvard Business Review, 74(6, Nov/Dec), 61.
22. Perreault Jr., D. W. and McCarthy, E. J. (2006). Essentials of Marketing: A Global-
Managerial Approach (10th ed.). Boston: McGraw- Hill Irwin, 72-75.
23. Schiffman, L. G. and Kanuk, L. L. (2010). Consumer Behavior (9th ed.). New Delhi:
Pearson Education.
24. Sujan, M. and Betman, J.R. (1989). The Effects of Brand Positioning Strategies on
Consumers’ Brand and Category Perceptions- Some Insights from Schema Research.
Journal of Marketing Research, 26(4), 454-467.
25. Shostack, G.L. (1987). Service Positioning through Structural Change. Journal of
Marketing, 51(1), 34-43.
26. Treacy, M. and Wiersema, F. (1993). Customer intimacy and other value disciplines.
Harvard Business Review, 71(1, Jan/Feb), 84.
27. Trout, J. and Ries, A.L. (1972). Positioning Cuts Through Chaos in the Marketplace. In
B. M. Enis, K. Cox & M. P. Mokwa (8th ed.), Marketing Classics (pp. 234-250). NJ:
Prentice Hall.
28. Walker Jr., O. C., Boyd Jr., H.W., Mullins, J. and Jarreche. J. (2003). Marketing
Strategy: A Decision-Focused approach (4th ed.). New Delhi: Tata McGraw Hill
Publishing Company Limited, 170-187.
QUESTIONNAIRE
1. Name_________________

2. How do you come to know about TVS?

Friends ( ) Advertisements ( ) Bank Reference ( ) Relatives ( )

Others ( ) Direct Marketing ( )

3. How long you are a part of TVS?

I-2 Years ( ) 2-3Years ( ) 3-4Years ( ) Above 4Years ( )

4. Which company do you think is our competitor?

Hero ( ) Honda ( ) Yamaha ( ) Bajaj ( )

5. Have you seen the advertisements of TVS ?

Yes ( ) No ( )

6. In which media have you seen the advertisements?

Newspaper ( ) Magazine ( ) Postures ( ) Hoardings ( )

7. Which marketing strategy of TVS is more effective

Advertisement ( ) Newspaper ( ) Direct Marketing ( ) TV

8. Do you think the advertisement is effective in inspiring customers?

Effective ( ) Not Effective ( ) Highly Effective ( )

9. What do you value more in purchase decision?

Service Support ( ) Product Features ( ) Price ( ) Reliability of the

Company ( )

10. What is the special differentiating of TVS from other competitors?

Product Integration ( ) Pricing Standard ( ) Service Support ( )

Other Installations ( ) User Friendly ( )

Measure the level of satisfaction towards the TVS

Highly Satisfied Dis Highly Dis

 Satisfied Satisfied Satisfied
12. PRICE
13. USER FRIENDLY
14. SECURITY
15. PRODUCT DESIGN
16. PRODUCT
FEATURES
17 SERVICE SUPPORT
18 MAINTANANCE
19 COMPETENCE

20. Why do you choose TVS?

Price ( ) User Friendly ( ) Security ( ) Product Features ( ) Service Support ( )
Maintenance ( )

21. What concerns do you have before purchasing TVS?

Firms Experience ( ) Service Support ( ) Price ( ) Quality ( ) Security ( )

22. Why wouldn’t some one buy TVS?

Price ( ) User Friendly ( ) Security ( ) Product Features ( ) Service Support (
) Maintanance ( )
23. Whether your overall needs /expectations are being met by the team?
Yes ( ) No( )
24. What is your overall opinion about TVS?
Excellent ( ) Average ( ) Not Satisfied ( )