CHAPTER-1

INTRODUCTION

INDUSTRY PROFILE
1
Indian Two-Wheeler Industry: A Perspective

Automobile is one of the largest industries in global market. Being the leader in product
and process technologies in the manufacturing sector, it has been recognized as one of the
drivers of economic growth. During the last decade, well¬-directed efforts have been
made to provide a new look to the automobile policy for realizing the sector's full
potential for the economy. Steps like abolition of licensing, removal of quantitative
restrictions and initiatives to bring the policy framework in consonance with WTO
requirements have set the industry in a progressive track. Removal of the restrictive
environment has helped restructuring, and enabled industry to absorb new technologies,
aligning itself with the global development and also to realise its potential in the country.
The liberalization policies have led to continuous increase in competition which has
ultimately resulted in modernization in line with the global standards as well as in
substantial cut in prices. Aggressive marketing by the auto finance companies have also
played a significant role in boosting automobile demand, especially from the population
in the middle income group.

Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile

sector that has undergone significant changes due to shift in policy environment. The two-
wheeler industry has been in existence in the country since 1955. It consists of three segments
viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the
share of two-wheelers in automobile sector in terms of units sold was about 80 per cent
during 2003-¬04. This high figure itself is suggestive of the importance of the sector. In the
initial years, entry of firms, capacity expansion, choice of products including capacity mix
and technology, all critical areas of functioning of an industry, were effectively controlled by
the State machinery. The lapses in the system had invited fresh policy options that came into
being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices
(MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly
and foreign investment respectively. This controlling mechanism over the industry resulted
in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of
capacity; and (c) usage of outdated technology. Recognition of the damaging effects of

2
licensing and fettering policies led to initiation of reforms, which ultimately took a more
prominent shape with the introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to the
major macroeconomic crisis faced by the economy. The industrial policies shifted from a
regime of regulation and tight control to a more liberalised and competitive era. Two major
results of policy changes during these years in two-wheeler industry were that the, weaker
players died out giving way to the new entrants and superior products and a sizeable increase
in number of brands entered the market that compelled the firms to compete on the basis of
product attributes. Finally, the two-¬wheeler industry in the country has been able to witness
a proliferation of brands with introduction of new technology as well as increase in number of
players.

MARKET CHARACTERISTICS

Demand

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 segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters.
While the first two emerged as a response to demographic changes, the introduction of 4-
stroke scooters has followed the imposition of stringent pollution control norms in the
early 2000. Besides, these prominent sub-segments, product groups within these sub-
segments have gained importance in the recent years. Examples include 125cc
motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three
broad segments are discussed in Table.

3
Two-Wheelers: Comparative Characteristics

  Scooter Motorcycle Moped

Price*(Rs. as in
> 22,000 > 30,000 > 12,000
January 2005)

Stroke 2-stroke, 4-stroke Mainly 4-stroke 2-stroke

Engine Capacity
90-150 100, 125, > 125 50, 60
(cc)

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Engine Power
6.5-9 7-8 and above 2-3
(bhp)

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency
50-75 50-80+ 70-80
(kms per litre)

Load Carrying High Highest Low

4
 
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 emphasised 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
5
Supply Manufacturers

As the following graph indicates, 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.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly
through: licensing and technical collaboration (as in the case of Bajaj Auto and LML);
and joint ventures (HHML).

A third form - that is, the 100% owned subsidiary route - found favour in the early 2000s.
A case in point is HMSI, a 100% subsidiary of Honda, Japan. Table 2 details the alliances
of some major two-wheeler manufacturers in India.

6
Technological tie-ups of Select Players

Nature of Alliance Company Product

Bajaj Technological tie-up Kawasaki Heavy Industries Ltd, Motorcycles

Auto Japan

Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers

Technological tie-up Kubota Corp, Japan Diesel Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie-up Hyosung Motors & Machinery Motorcycles

Inc

KEL Tie up for Italjet, Italy Scooters

manufacturing
and distribution

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

With the two-wheeler market, especially the motorcycle market, becoming extremely
competitive and the life cycle of products getting shorter, the ability to offer new models
to meet fast changing customer preferences has become imperative. In this context, the
ability to deliver newer products calls for sound technological backing and this has
become one of the critical differentiating factor among companies in the domestic market.
Thus, the players have increased their focus on research and development with some
having indigenously developed new models as well as improved technologies to cater to
the domestic market. Further, with exports being one of the thrust areas for some Indian
two-wheeler companies, the Indian original equipment manufacturers (OEMs) have
realised the need to upgrade their technical capabilities. These relate to three main areas:
fuel economy, environmental compliance, and performance. In India, because of the cost-
sensitive nature of the market, fuel efficiency had been an interest area for manufacturers.

7
It is not only that the OEMs are increasing their focus on in-house R&D, they also
provide support to the vendors to upgrade the technology and also assist them striking
technological alliances.

COMPANY PROFILE

8
TVS Group 

TVS group was established in 1911 as a bus service in Madurai by Late Shri. TVS
Sundram Iyangar. After some years of services they started automobile company with limited
capital TVS motors is a gusty performer. It is declared a splendid result for quality for the
financial year 2002. It is the first year post separation with Suzuki but the company just
surprised its critics though its excellent performance. 

Development and Impact 

Name Changed To TVS Motor 

      After the exit of Suzuki from the joint venture, selling its 25.97% stake at Rs.15 per share
to sundaram claylon, the board in November decided to change the name of the company to
TVS motors Ltd. 

Early End to Licensing Agreement  

      In December 2001, TVS sought an early end to its licensing agreement with Suzuki by
giving the mandatory 120 days prior notice. Accordingly the licensing agreement has came to
an end in April. TVS can now launch products under its own brand name .

Victory with Victory 

      In the end at 2001, the company had launched indigenously developed 110cc bike the
victor in the executive segment. Priced at around 41,200. (ex- show room Chennai) the
company had invested to 70 crosses on the project and has been amply rewarded. The
products has been a huge hit given its high mileage and competitive pricing coupled with a
higher cc engine for its class. 

TVS Motors Opening a Plant in Indonesia 

      TVS motors is considering opening up a manufacturing plant in the South Eastern

Asian Country of Indonesia and they would be finalizing the plans within a month itself.
They are planning to start production within 15 months and the estimated investment is
expected to be in the region of USD 50 million. 

      The company would be launching a series of motor cycles in the Indonesian market to
compliments sales in the local industry. Some of the variants of their popular models like
victor and start are expected to make entry in to the Indonesian market. 
9
      TVS motors plans to sell more than a million bikes this year and want to capture at
least 15% of the market share in the Indian sector. 

      The motor bike market grew by around 20% last year through TVS itself saw a 5%
drop in sales figures. Much of it can be blamed on the entry of the Honda as an
independent unit in the market. 

      The company’s latest product centra trough technically quite advance has failed to
generate any fire on the sales DIAGRAM. They are also planning to enter the three –
wheeler market next year with a planned investment of around Rs.100 Crores for a plant
at Mysore. 

Sachin to Promote TVS 

      TVS has roped in Sachin Tendulkar as the brand ambassador. The contract entered for
an undisclosed sum would be for a period of three years. The company would be
spending 50 crores on building the TVS brand as a whole rather than spending on
advertising on products. 

To end Royalty Payment 

      TVS will no longer have to pay royalty to Suzuki on its motor cycles after the end of
the licensing agreement. 

To Increase Research and Development  

      The company will be increasing its research and development from 1.8% of sales to
3.6% of sales in the next year. 

To Invest 200 Crores for Expansion  

      The company has announced plans to invest Rs.200 crores to increase the capacity up
to 1.2 million units a year no meet the increasing demand for its motor cycles. 

      In the export front TVS motor company recorded its highest ever exports of 11,008
units in august 2007, at a growth of 71% compared to the same period last year.

Achievement of TVS Motor Company 

10
 TVS motor company records 28% growth in motor cycles.

 TVS motors company report turnover of Rs.939.62 crores record 26% growth.

 TVS motor company sales up by 23%

 TVS bike sales up by 53%

 Market Launches of TVS Group 

 India’s first 2 seated 50cc moped, TVS 50 in August 1980.

 Introduced 100cc indo – Japanese motorcycle in September 1984

 Introduced first indigenous scooter (Sub – 100 cc variomatic scooters), TVS

scooty in June 1994.

 First catalytic converter enabled motor cycles, the 110 cc shogun in December
1996.

 Launched India’s first 5 speed motor cycles the Shaolin in October 1997.

 Launched TVS victor, 4 stoke 110 cc motor cycle, in august 2001. India’s first
indigenously designed and manufactured motor cycle.

 Launched TVS centra in January 2004, a world class 4 stoke 100 cc motor cycle
with the revolutionary VT-I engines for best in-class mileage

 Introduced TVS star in September 2004, a 100 cc motor cycle with is ideal for
rough terrain.

 Launched TVS Flame in March 2008, a 125 cc motor cycle with a twin spark
plug.

 Acknowledged by the Japanese for Quality  

 TVS motor company have been awarded the prestigious and converted Deming
prize, institute by Jose. (Japanese union of scientists and engineers).
11
 TVS motors was also awarded the prestigious TPM excellence award first
category by Japanese institute of plant maintenance, rated as the bench mark in TPM
excellence in India.

 Asian Network for Quality Award 2004 

 TVS Scooty Pep won the prestigious outstanding design excellence award from
business world and national institute of design.

 Star of Asia award to Mr. Venu Srivasan, CMD TVS motor company by business
week international.

 Venu Srinivasan, chairman and managing director, TVS motor company was
honored with doctorate in science by university of Warwick United Kingdom.

 Present Condition of the Company 

 Largest and automotive components group in India.

 Diversified into consumer durables, computer peripherals and two wheelers

 Joint venture with world leaders.

 Sales turnover of Rs.75000 Crores.

TVS Motor Company Ltd has 0 positive reviews and 0 negative reviews.

TVS Motor Company Limited is the flagship company of TVS Group, the USD 4 billion
group. The Group is the third largest two-wheeler manufacturer in India and globally
among the top ten, with an annual turnover of over USD 650 million. Currently, the group
has more than 30 companies and employs over 40,000 people worldwide. With steady
growth, expansion and diversification, it commands a strong presence in the
manufacturing of two-wheelers, auto components and computer peripherals. They also
have vibrant businesses in the distribution of heavy commercial vehicles (HCV)
passenger cars, finance and insurance.

1980 was the milestone year for TVS when India’s first two-seater moped rolled out. It
ushered in an era of affordable personal transportation. Globally, TVS Motor Company is

12
the first two-wheeler manufacturer to be honoured with the hallmark of Japanese Quality
– The Deming Prize for Total Quality Management.

The company has 4 plants – located at Hosur and Mysore in South India, in Himachal
Pradesh, North India and one at Indonesia. The company has a production capacity of 300
thousand units a year.

"Inspiration in Motion"

TVS Motor is the third largest two-wheeler manufacturer in India and ranks among the
top ten globally. It is the first company in the world to be honored with The Deming Prize
for Total Quality Management. The company was the first in India to launch 2-seater
50cc moped and 100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor,
TVS Scooty, TVS Centra and TVS Fiero are the popular bikes in Indian market.

13
Quick Facts

Founder T V Sundaram Iyengar

Country India
Year of Establishment August 1980 (TVS Group in 1911)
Industry Manufacturing of two-wheelers and auto components
Business Group TVS Group
Listings & its codes NSE
TVS - Suzuki Ltd: TVSSUZUKI
TVS Motor Company Limited: TVSMOTOR
TVS Motor Company Limited: TVS-SUZUKI
BSE
TVS Motor Company Ltd.: 532343
Head Office TVS Motor Company Jayalakshmi Estates V Floor
8, Haddows Road, Chennai - 600006 Tel.: +(91)-(44)-
28272233 Fax: +(91)-(44) 28257121
Factory Post Box No. 4 Harita, Hosur - 635 109Tel.: +(91)-(4344)-
276780 Fax: +(91)-(4344)-276878 Post Box No.1
Byathahalli Village, Kadakola Post Mysore - 571 311 Tel.:
+(91)-(821)-2596561 Fax: +(91)-(821)-2596550/ 2596553
Website www.tvsmotor.in

Segment and Brands

TVS Apache

TVS Apache RTR FI 160

TVS Centra

TVS Fiero FX

TVS Flame

TVS Scooty
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TVS Star

TVS Victor

TVS Victor GLX 125

TVS XL Super

TVS 180 RTR Menace New

TVS JUPITER

TVS SPORT

TVS SCOOTY ZEST

TVS STAR CITY PLUS

TVS WEGO

TVS PHEONIX

TVS SCOOTY STREEK

Milestones of TVS Motor

1980 India's first 2 seater 50cc Moped TVS 50, launched in Aug.

1984 First Indian Company to introduce 100cc Indo-Japanese motorcycles

in Sept.

1994 Launched first indigenous Scooterette (sub-100 cc variomatic

scooters), TVS Scooty in June.

1996 Introduced first catalytic converter enabled motorcycle, the 110cc

Shogun in Dec.

1997 Launched India's first 5-speed motorcycle, the Shaolin in Oct.

15
2000 Launched TVS Fiero, India's first 150 cc, 4 stroke motorcycle in
April.

2001 Launched TVS Victor, 4-stroke 110 cc motorcycle, in August, India's

first fully indigenously designed and manufactured motorcycle.

2004 Launched TVS Centra in January, a world-class 4-stroke 100 cc

motorcycle with the revolutionary VT-i Engines for best-in-class
mileage.

Launched TVS Star in Sept, a 100 cc motorcycle which is ideal for

rough terrain.

16
2006
Making a style statement. Launched TVS Apache, which set the
youth's imagination on fire. Apache went on to win 6 prestigious
awards

2007 Yet another first. TVS launches its Himachal Pradesh Plant at
Nalagarh.

2008 TVS Motor Company bags two coveted IT awards SAP ACE 2008
and 2008 Symantec South Asia Visionary Award

2010
Jive : The Auto - Clutch bike launched

2013 TVS Motor Company launched Its premium executive 125cc

motorcycle, TVS Phoenix

2015 TVS launches its all new premium commuter scooter, the TVS Wego
110cc.

To celebrate the 1st year anniversary of the Jupiter, TVS launches the
special edition of the Jupiter with a new colour and additional
features, to be sold in limited numbers.

J.D Power Asia Pacific India Automotive Awards

The most Appealing Executive Scooter - TVS Wego
The most Appealing Premium Motorcycle - TVS Apache 
The most Appealing Economy Motorcycle - TVS Sport

2016 After decades of conquering the track, 2016 saw the launch of the
new TVS Apache RTR 200 4V. The most powerful Apache yet.

2017 A new Victor to make you smile with every ride. The new TVS
Victor launched.

2018 2018 was special for TVS Motor Company as we launched TVS
Ntorq 125, India’s first scooterwith Bluetooth and smart connectivity.

17
Company Flashback

TVS Motor Company Limited is the flagship company of TVS Group, the USD 2.2
billion group. The Group is the third largest two-wheeler manufacturer in India and
globally among the top ten, with an annual turnover of overUS650million.

Currently, the group has more than 30 companies and employs over 40,000 people
worldwide. With steady growth, expansion and diversification, it commands a strong
presence in the manufacturing of two-wheelers, auto components and computer
peripherals. They also have vibrant businesses in the distribution of heavy commercial
vehicles (HCV) passenger cars, finance and insurance.

1980 is the red letter year for TVS when India's first two-seater moped rolled out. It
ushered in an era of affordable personal transportation.

Globally, TVS Motor Company is the first two-wheeler manufacturer to be honored with
the hallmark of Japanese Quality - The Deming Prize for Total Quality Management.

18
 CHAPTER-2
ABOUT THE STUDY

ABOUT THE STUDY

In this competitive modern age, where different qualities and types of goods exist,
branding is of special importance in the business world, branding not only gives separate

19
identify and easy recognition of the product but also creates a special brand preference.
Consumers are aware and prefer particular brand when it is available for purchase. 

The competition among the bike makers is growing day-to-day. The Indian auto industry
is also subject to tremendous, changes, with the opening up to the domestic corporation to
meet challenges vehicle productivity, entrance market orientation loyalty. For knowing
consumer taste and preferences, consumer oriented survey place an important role in the
entire market. 

In modern day, vehicle is a necessary one from every family to keep the prestige of
holding them in the society.

MARKETING STRATEGIES
The starting point for the effective rural marketing strategy is the rural consumer
and his product preferences. Studying the rural consumer closely, analyzing his needs,
life styles and standard of living will enable marketer to formulate effective marketing
strategies. Elements for effective marketing strategies are:-

20
 1. Product planning
2. Pricing
3. Positioning of product
4. Distribution channel planning
5. Promotional planning
1. PRODUCT PLANNING:-
Before entering into the production process, it would be important to understand
the likely improvements and modifications required in the existing products. The
production design, colour and quality ought to be planned as per demand and the taste of
the rural consumers. This would help make products acceptable to the rural population.
For example, it has been observed that rural consumers relish "Home made ghee" which
is prepared by heating butter obtained by churning curd. This process induces a peculiar
attempt the ripening process for manufacturing ghee and should develop flavour as close
to that of the "Home made ghee".
The packing of products should be strong enough to with stand rough handling.
The size of packing should be smaller than urban retail pack so as to suit the affordability
by the rural masses. A low unit price pack is desirable because of the low purchasing
power of rural consumers.

2. PRICING:-

Price is an important element of the marketing strategy. In rural areas, the role of
price becomes more significant because of low purchasing power of the rural masses.
This factor should be considered while pricing the product. For example, the price of ghee
must be lower than the cost of manufacturing ghee at home by milk producers, otherwise
they would not find it attractive to buy from the market.
Packing cost of the product should be kept as low as possible.

3. POSITIONING OF PRODUCT:-

21
 After analyzing the preferences of the rural consumer a firm should position its
product in an appropriate way. The positioning of the product can be done in many ways.
For example:-
a) Low price positioning
b) Positioning on the sense of belongingness
c) Quality leadership

After analyzing the product attributes and studying the rural habits, tastes and life
style, one can come up with a proper strategy to position the milk products in rural areas.

4. DISTRIBUTION CHANNEL PLANNING:-

Distribution is a major problem in rural marketing. Inspite of the growing

awareness about the potential of rural market, most marketing firms have failed to tap it
because they could not develop an effective distribution system.
The rural areas hardly have any agents, dealers or stockiest. Milk Plant has
an advantage over the private enterprises because of their daily milk collection network of
village level societies. The society works as stockists/dealer and the secretary of the
society becomes a good medium to route the products to the ultimate consumer.
Therefore, if the secretary is given retailer's margin, he gets motivated to sell the
products. Credit facilities against the milk sale can also boost the sales. Gram Seva Samiti
can also be used as sales point by giving them suitable margin.

5. PROMOTIONAL PLANNING:-

While deciding on as to which media would reach the prospective rural buyers
effectively, the socio-cultural background, the literacy level and their media preferences
need to be studied. Rural people with low literacy level would only remember brands by
picture symbols as opposed to brand names. For the rural consumer a message should be
simple and design should be catchy to comprehend.

22
 As mentioned earlier one should understand the psychology of the rural consumer
before designing the "Message". Rural milk producers generally perceive that converting
milk into ghee at home is a cheaper proposition. The message should so designed as to
break these notions of rural masses. Rural people should educate that conversion of milk
into ghee at home is a costlier proposition. Posters in this context should be pasted at
various societies and message should be communicated through village extension
workers.
Personal contact of village extension workers and secretary with the
producer members also plays an important role. Milk van could be painted with
advertisements of the brand of the Milk Plant to increase awareness. Because of literacy
level in rural areas, media selection becomes a problem. However, "Word of mouth"
advertising will emerged as the most effective means of advertising and communications.
It is also felt that opinion leaders and important informants in the village have a greater
role in improving product image. Field team should contact them and seek their help.
Another popular effective rural media is "Wall painting" which is already done by the
Milk Plant's authority in case of sale of Reliance cattle feed. Propaganda and
demonstration vans, loudspeakers and participation in village fairs & melas help in
turning the villagers into buyers.

23
 CHAPTER-3
OBJECTIVES OF
THE STUDY

SCOPE OF THE STUDY

 The present scenario of business is facing a hard challenge it is must to uphold the
existing customer and to serve them as our best.

 From this study the preference of the customer can be analyzed and helps the
organization to fulfill that scenario.

 The study helps to know the factors that influence the customer to buy the products at
their convenience.

24
 The study helps to know the necessary services required by the customers to
overcome the problem in the products and provides various insights into customer
attitudes and satisfactions.

 The study helps to maintain the better relationship with customer by the company

OBJECTIVES OF THE STUDY

Primary Objective:  

To find out the factors behind the customer preference to TVS two wheelers

Secondary Objectives: 

 To know the awareness about TVS vehicles among the vehicles users.

 To find out the opinion of the respondents SHOWING TVS vehicles, like
cost price, mileage, and maintenance cost and gear opinion of their vehicles.

25
 To study the importance criteria the consumer looks for the product
performance.

 To analyze the service rendered and level of consumer satisfaction through

delivery process.

LIMITATION OF THE STUDY

 This study is limited to Punjab . Therefore the findings of the study cannot be

extended to other areas.

 The samples have been collected from the limited number of respondents.

 The project was completed within 30 days. Time achieve is considered inadequate to

conduct such survey.

26
 The result of the study may not be generalized to all.

 Some of the respondents were non co-operative.

27
 CHAPTER-4
RESEARCH
METHODOLOGY

Area of the Study

      The area of the study is TVS two wheeler vehicles users in New Delhi. 

Methods of Data Collection

      A questionnaire is used as data collection tool where the researcher interviews the

respondents.  

Primary Data

28
      The primary data has been collected by conducting direct interview using structured

questionnaire. 

Secondary Data

      The secondary data are collected from books, journals, company records and internet. 

Analysis

      Analysis is done on the basis of sample Percentage analysis. 

Sampling Technique

      There are two sampling techniques. They are probability sampling and non

probability sampling. In this study the research had adopted convenient sampling. 

Sampling Size

      Sampling size taken from the study is 100 respondents. 

29
 CHAPTER -5
DATA ANALYSIS AND
INTERPRETATION

30
 Data interpretation

Simple Percentage Analysis

The Percentage method is used for comparing certain feature. The collected data

represented in the form of tables and graphs in order to give effective visualization of

comparison made. 

Actual population

Simple Percentage =    x 100

Sample size

31
Table showing the age group of the respondents

Age No. of respondents Percentage

20-30 45 45
30-40 28 28
40-50 18 18
50-60 09 09

Total 100 100

Interpretation

The above table and DIAGRAM shows the age group of respondents that 45% of the
respondents are between the age group of 20-30, 28% are 30-40, 18% are 40-50 and the
remaining 9% are in the age group 50-60.

DIAGRAM

DIAGRAM showing the age group of the respondents

No. of respondents

20-30
30-40
40-50
50-60

32
 Table showing the occupation of the respondents

Occupation No. of respondents Percentage

Private employee 40 40
Government employee 15 15
Business man 20 20
Students 18 18
Others 07 07
Total 100 100

Interpretation

From the above table it can be analyzed that above 40% of the respondents are occupied
in private employment, 20% are business people, 18% are students, 15% are government
employees and the remaining 7% are from other category.

DIAGRAM

Diagram showing the occupation of the respondents

No. of respondents
 
Private employee

Government
employee
Business man

Students

Others

Table showing the number of family members

33
 Family members No. of respondents Percentage

1-2 15 15

2-4 48 48

4-6 25 25

6 and above 12 12

Total 100 100

 Interpretation

The above table shows that 48% of the respondents lies under 2-4 family members
category, 25% are in 4-6 category, 15% are in 1-2 category and the remaining 12% lies in
6and above category.

DIAGRAM

Diagram showing the number of family members

No. of respondents

02-Jan
  
04-Feb
 

Table showing the monthly income of the respondents.

34
 Income No. of respondents Percentage

4000-6000 46 46

6001-8000 28 28

8001-10000 15 15

10000 above 11 11

Total 100 100

Interpretation

The above table shows that 46% of the respondents have a monthly income 4000-6000,
28 % are in 6001-8000, 15% are in 8001-10000 and the remaining 11% are earning above
10000. 

DIAGRAM

Diagram showing the monthly income of the respondents

  

35
 Table showing the most preferred model in TVS by the respondents

Particulars No. of respondents Percentage

TVS apache 41 41

TVS victor 26 26

TVS star city 21 21

TVS MAX R100 12 12

Total 100 100

Interpretation  

The above table shows that 41% of the respondents prefer TVS apache, 26% prefer TVS
Victor, 21% prefer Star City and the remaining 12% prefer TVS MAXR 100.

DIAGRAM

Diagram showing the most preferred model in TVS by the respondents

No. of respondents

TVS apache
TVS victor
TVS star city
TVS MAX R100

Table showing the mode of purchase by the respondents

36
 Particulars No. of respondents Percentage

Loan 58 58

Cash 24 24

Credit 13 13

Mortgage 5 5

Total 100 100

Interpretation

The above table shows that 58% of the respondents have resorted to loan, 24% have paid
cash, 13% have purchased in credit, and 5% have done it with mortgage.

DIAGRAM

Diagram showing the mode of purchase by the respondents

No. of respondents

Loan
Cash
Credit
Mortgage

Table showing the mileage performance of the vehicle used by the respondents.

37
 Particulars No. of respondents Percentage

30-40 18 18

40-50 27 27

50-60 40 40

60 and above 15 15

Total 100 100

 Interpretation

The above table shows about 40%of the respondents are getting a mileage in the range
50-60 kilometers, 27% are getting 40-50 kms, 18% are getting 30-40 kms and 15% above
60 kms.

DIAGRAM

Diagram showing the mileage performance of the vehicle used by the respondents

No. of respondents

30-40
40-50
50-60
60 and above

Table showing. the type of media preferred by the respondents

Particular No of respondents Percentage

38
Television 46 46

Newspaper 28 28

Magazine 15 15

Banners 11 11

Total 100 100

Interpretation

The above table shows about 46% of the respondents have come to know TVS vehicles
through advertisement on Television, 28% through Newspaper, 15% through Magazine
and 11% through banners.

DIAGRAM

Diagram showing the type of media preferred by the respondents

No of respondents

Television
Newspaper
Magazine
Banners

39
 Table showing the maintenance cost by the respondents per month.

Particulars No. of respondents Percentage

400 63 63

500 22 22

700 09 09

1000 and above 06 06

Total 100 100

Interpretation

The above table indicated that about 63% of the respondents are incurring maintenance
cost of Rs. 400, 22% incurring Rs.500, 9% incurring Rs.700 and only 6% incurring more
that Rs.1000.

DIAGRAM

Diagram showing the maintenance cost by the respondents per month

Table showing the purpose of the vehicle used by the respondents.

40
 Particulars No. of respondents Percentage

Official 45 45

Personal 55 55

Total 100 100

 Interpretation

The above table shows that 55% of the respondents are using the vehicle for personnel
use and the rest 45% are for official use.

DIAGRAM

Diagram showing the purpose of the vehicle used by the respondents

No. of respondents

Official
Personal

41
 Table showing the usage of the vehicle by the respondents in years.

Particulars No. of respondents Percentage

0-1 years 13 13

1-2 years 20 20

2-3 years 28 28

3 years & above 39 39

Total 100 100

 Interpretation

The above table shows that 39% of the respondents are using the vehicle for 3 years and
above, 28% are in the category of 2-3 years, 20% are in 1-2 years and the remaining 13%
are below one year.

DIAGRAM

Diagram showing the usage of the vehicle by the respondents in years.

No. of respondents

0-1 years
1-2 years
2-3 years
3 years & above

Table showing the gear opinion of the respondents.

42
 Particulars No. of respondents Percentage

Excellent 22 22

Good 54 54

Modification 18 18

Poor 06 06

Total 100 100

Interpretation

The above table shows that 54% of the respondents opinion about the gear system is
good, 22% responded to be excellent, 18% were in need of modification and the
remaining 6% reported to be poor.

DIAGRAM

Diagram showing gear opinion of the respondents 

 

No. of respondents

Excellent
Good
Modificatio
n

Table showing the reason for purchase of the model

43
 Particulars No. of respondents Percentage

Comfort 45 45

Style 23 23

Mileage 29 29

Advertisement 03 03

Total 100 100

Interpretation

The above table shows that 45% of the respondents feel that comport is the reason for
purchase of the selected model, 29% prefer to its mileage, 23% to its style and 3% just by
the advertisement.

DIAGRAM

Diagram showing the reason for purchase of the model

No. of respondents

Comfort

Style

Mileage

Table showing the cost of vehicle

Particulars No. of respondents Percentage

44
 High 29 29

Moderate 50 50

Low 21 21

Total 100 100

Interpretation

The above table indicates that 50% of the respondents feel that the cost of vehicle is
moderate, 29% feel it is high and 21% feel it is low.

DIAGRAM

Diagram showing cost of the vehicle

No. of respondents

High
Moderate
Low

Table showing the warranty period

Particulars No. of respondents Percentage

Yes 87 87
45
 No 13 13

Total 100 100

Interpretation

The above table we can inter that about 87% of the respondents are feeling that the
warranty period is helpful and the remaining few i.e 13% say it is not useful.

DIAGRAM

Diagram showing the warranty period

  No. of respondents

 
Yes
No
 

Table showing the use of vehicle for hours per day

Particulars No. of respondents Percentage

0-1 hour 09 09

1-2 hour 21 21

46
 2-3 hour 43 43

more than 3 hours 27 27

Total 100 100

Interpretation

The above table shows that 43% of the respondents are using the vehicle for 2-3 hours per
day, 27% use more than three hours, 21% use 1-2 hours and 9% use below one hour .

DIAGRAM

Diagram showing the use of vehicle for how many hours per day

  No. of respondents

0-1 hour
1-2 hour
2-3 hour
more than 3 hours

47
 Table showing the spare parts availability with the local dealers

Particulars No. of respondents Percentage

Satisfied 80 80

Dissatisfied 20 20

Total 100 100

Interpretation

The above the table shows that 80% of the respondents are satisfied with the spare parts
availability with the local dealers and 20% are not satisfied with the same.

DIAGRAM

Diagram showing the spare parts availability with the local dealers

No. of respondents

 
Satisfied
Dissatisfied
 

48
 Table showing the level of satisfaction of the respondent with sales and service

Particulars No. of respondents Percentage

Highly satisfied 58 58

Satisfied 30 30

Dis-satisfied 07 07

Highly dis-satisfied 05 05

Total 100 100

Interpretation

The above table shows that 58% of the respondents are highly satisfied with the sales and
service, 30% are satisfied, 7% are dissatisfied and 5% are highly dissatisfied

DIAGRAM

Diagram showing the level of satisfaction of the respondent with after sales and
service.

No. of respondents

Highly satisfied
Satisfied
Dis-satisfied
Highly dis-satisfied

49
 Table showing the problem faced by the respondents.

Particulars No. of respondents Percentage

Starting trouble 20 20

Pick up 52 52

Mileage problem 28 28

Battery problem 0 0

Total 100 100

Interpretation

The above table shows that 52% respondents faced pick up problem, 28% face Mileage
problem and 20% face starting trouble where none faced battery problem.

DIAGRAM

Diagram showing the problem faced by the respondents

No. of respondents

Starting trouble
Pick up
  Mileage problem
Battery problem

50
 Table showing the respondents opinion about long riding of the vehicle

Particulars No. of respondents Percentage

Wonderful 13 13

Excellent 21 21

Good 51 51

Poor 15 15

Total 100 100

Interpretation

The above table shows that 51 % report good, 21% report excellent, 15 percentage report
poor and the remaining 13% report Wonderful.

DIAGRAM

Diagram showing the respondents opinion about the long riding of this vehicle

No. of respondents

Wonderf ul
Excellent
Good
Poor

51
 Table showing the respondents plan for changing their vehicles

Particulars No. of respondents Percentage

Yes 28 28

No 72 72

Total 100 100

 Interpretation

The above table shows that 72 % of the respondents have no idea to change the vehicle
and the remaining 28% say yes.

DIAGRAM

Diagram showing the respondents plan for changing their vehicles

No. of respondents
 

Yes
No

52
 Table showing the respondents alternative preference

Particulars No. of respondents Percentage

Honda 10 10

Hero Honda 46 46

Bajaj 30 30

Yamaha 14 14

Total 100 100

 Interpretation

The above table shows that 46 % of the respondent’s alternative preference of the vehicle
is Hero Honda, 30% to Bajaj, 14% to Yamaha and the rest 10% to Honda .

DIAGRAM

Diagram showing the respondents alternative preference

No. of respondents

Honda
Hero Honda
  Bajaj
Yamaha

53
 Table showing the overall performance of the vehicle used by the respondents

Particulars No. of respondents Percentage

Highly satisfied 46 46

Satisfied 24 24

Moderate 20 20

Dissatisfied 10 10

Total 100 100

Interpretation

The above table shows that 46% of the respondents feel that they are highly satisfied with
the overall performance, 24% are satisfied, 20% are Moderately satisfied and 10% are not
satified.  

DIAGRAM

Diagram showing the overall performance of the vehicle used by the respondents

No. of respondents

Highly satisfied
Satisfied
Moderate
Dissatisfied

CHAPTER 4

54
 CHAPTER-6
FINDINGS AND
DISCUSSIONS

FINDINGS AND DISCUSSIONS

55
 Responds are 45 % from age group of 20-30.

 Private employees are occupying 40% response.

 2-4 family members are responding 48%.

 Monthly income of family 4001-6000 are responding 46%.

 41% youngsters prefer TVS Apache.

 because of loan 58% responses have been restored

 50-60 km/pl mileage have restored 40% response

 Advertisements on television of TVS Vehicles have gained 46% response

 63% of the respondents are incurring maintenance cost of Rs. 400.

 55% of the respondents are using the vehicle for personnel use.

 39% of the respondents are using the vehicle for 3 years and above.

 54% of the respondents feel good for the gear system.

 50% of the respondents feel that the cost of changed for the vehicle is moderate.

 87% of the respondents are feeling that the warranty period is helpful.

 45% of the respondents feel that comfort is the reason for purchasing the model.

 43% of the respondents are using the vehicle for a day 2-3 years.

 80% of the respondents are satisfied with the spare parts availability.

56
 58% of the respondent’s people are highly satisfied with after sales service offered by

the company.

 52% of the respondents are facing problem while pick-up.

 51% of the respondents are long riding is good.

 72% of the respondents have no idea to changing the vehicle.

 46% of the respondent’s alternative preference of vehicle is hero Honda.

 46% of the respondents feel that they are highly satisfied by the overall performance of

the vehicle.

57
CHAPTER - 7
CONCLUSION

CONCLUSION

58
This study was conducts in New Delhi with a broad objective of consumer preference of

two wheelers in TVS vehicle for this purpose. 100 customers were selected and obtained

the various responses based on the questionnaire method.

The data was collected and consolidated using simple Percentage method, and chi-square

analysis, Graphic and DIAGRAMs, tables were used for representation to achieve the

objective of the study.

By and large it was found that most of the consumer is choose on TVS vehicles because

of its low maintenance cost, good model and good long riding etc. It’s maintained in

awareness of the vehicles and improving the satisfaction level and advertisement. This

study can survey helped in TVS Motors Company to improve their sales and service. 

59
 CHAPTER-8
RECOMMENDATIONS

 The company should maintain the awareness among TVS vehicle users.

 The company should maintain the long riding reduces the cost and increase the

mileage and pick-up.

60
 The company should provide alternative media message.

 Spare parts are made available of reasonable price, it has to be maintained

 It should improve the style and comfortable the TVS vehicle.

 Produce the vehicle at international standard and average technology.

 The company should provide resorted to loan

 The company should provide long term warranty

 The company should improve its marketing strategy to suit middle class family

BIBLIOGRAPHY

BOOKS 

1. BALU.V,Dr (2001) : “MARKETING RESEARCH OF

“CONSUMER BEHAVIOUR”2nd
61
2. KOTHARI. C.R (2003) : “RESEARCH METHODOLOGY”, 

WISHAWAV PRAKASHAN.   

 3. KOTLER PHILIP (2003) : “MARKETING MANAGEMENT” 

MILLENNIUM EDITION PRENTICE

TALL OF INDIA PRIVATE LIMITED,

2001, 10th EDITION.  

4. PILLAI .R.S.N  : “MODERN MARKETING” 2nd

EDITION SULTHAN CHAND BHAGAVATHY

AND SONS.                                                     

WEB SITE:

http://www.tvsmotors.in

http://www.google.com

http://www.managementparadise.com

62
ANEXURE

ANEXURE
63
 A STUDY ON END-USER PREFERENCE OF TVS MOTORVECHILE WITH
SPECIAL REFERENCE TO TVS MOTORS, ABOHAR

QUESTIONARIE

1. Name  :

2. Address  :

3. Age

    a) 20-30        b) 30 -40        

c) 40-50  d) 50-60.

4. Occupation

    a) Private employee       b) Government employee       

c) Business man d) Professional         e) Others.

5. Number of family members:

    a) 1-2 b) 2-4   

c) 4-6   d) 6 and above

6. Family income (Per month)

    a) 4000– 6000  b) 6001 – 8000  

c) 8001 – 10000  d) 10000 and above 

7. Which you preferred in TVS bike model

64
    a) TVS MAX R100  b) TVS Victor 

c) TVS Star city  d) TVS Apache.

8. State the mode of purchase:

    a) Loan     b) Cash    

c) Credit       d) Hypothecation 

9. What is the mileage?

    a) 30- 40  b) 40-50

c) 50-60  d) 60 and above  

10. What is the media in which you have seen the advertisement of TVS

    a) Television      b) Newspaper 

c) Magazine d) Banners

11. What is the maintenance cost (per month)    

a)400 b) 500     

c) 700 d) 1000 and below.

12. For what purpose the vehicle is used?

   a) Official       b) Personal

13 How long you owned the vehicle

    a) 0- 1 year  b) 1-2 year    

65
 c) 2-3 year  d) 3 year and above

14. What is your opinion about the gear system?

    a) Excellent  b) Good  

c) Modification   d) Poor

15. State the reason for purchasing the mode?

    a)  Comfort   b) Style

 c) Mileage   d) Advertisement

16. What do you feel about the cost of the vehicle?

    a) High            b) Moderate            c) Low.

17. Did you get any warranty period?

   a) Yes            b) No

18. If you use Bike, how many hours a day?

    a) 0-1 hours  b) 1-2 hours

c) 2-3 hours  d) More than 3 hours.

19. Are you satisfied with the spare parts available with local dealer?

     a) Satisfied   b) Dissatisfied

20. Are you satisfied with after sales and service?

      a) Highly satisfied b) Satisfied  

66
 c) Highly dissatisfied  d) Dis-satisfied

21. What problem you come across while using the vehicle?

      a) Starting trouble    b) Pick up  

c) Mileage problem   d) Battery problem.

22. What is your opinion about the long riding of this vehicle?

      a) Wonderful    b) Excellent 

c) Good   d) Poor

23. Do you have any idea to change the vehicle?

      a) Yes              b) No.

24. If yes, mention the brand

      a) Honda  b) Hero Honda

 c) Bajaj  d) Yamaha

25. How do you feel about the overall performance of this vehicle?

      a) Highly satisfied  b) Satisfied    c) Moderate  d) Dis-satisfied. 

67