COMPETITOR ANALYSIS OF SCOOTERS,

CUSTOMER RESERVATIONS ON
TVS JUPITER

A Training report submitted in the part fulfillment of the

requirements for the award of

“Post Graduate Diploma in Management”

Year 2021-22

Project Mentor Industry mentor

Prof. R.J. Masilamani J. Naresh Kumar
BIMTECH, Greater Noida Sales manager,
Vijayawada Territory,
TVS motors

An effort by –

Bhargava SaiKumar Sudikonda-14DM059

11
 SUMMER PROJECT CERTIFICATE

This is to certify that Mr. Bhargava SaiKumar Sudikonda, Roll No. 14DM059, a student of
PGDM (Marketing), BIMTECH, has worked on a summer project titled “ COMPETITOR
ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” at TVS motor
company Limited after Trimester-III in partial fulfillment of the requirement for the Post Graduate
Diploma in Management program.

This is his original work to the best of my knowledge.

Date: -----------------------------------------

(Prof. RJ Masilamani)

BIMTECH SEAL

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[Type Page
 ACKNOWLEDGEMENT
I would like to gratefully acknowledge my thanks to all the people who took active part in my
active part and provided valuable support to me during the course of this project. To begin with, I
would like to acknowledge my sincere thanks to “J. Naresh Kumar, Territory Sales Manager
(AMD) – Vijayawada” for providing me the opportunity to do my summer training at “TVS
Motor Company”. Without their guidance, support, and valuable suggestions during the
research, the project would not have been accomplished.

My heartfelt gratitude also goes to Mr. Sandeep Chukkala and Mr. Rajesh Babu for their co-
operation and willingness to answer my queries, which made the project possible.

I also sincerely thank “Prof. R. J. Masilamani, PGDM-IIMA”, my faculty mentor at

BIMTECH, who provided valuable suggestions, shared his rich corporate experience, and helped
me script the exact requisites.

Last, but not the least, I would like to thank Kusulava TVS, dealer of TVS Motor Company for
sharing their experience and giving their valuable time to me during the course of my project.

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 LETTER OF TRANSMITTAL

Birla Institute of Management Technology

Plot no. 5, Knowledge Park-II, Institutional Area,

Greater Noida (NCR), U.P-201306, INDIA

Date:

Mr. J. Naresh Kumar,

TVS Motor Company Pvt. Ltd

Vijayawada.

Dear Sir,

Re: Summer Project Report

Attached herewith is a copy of my summer-project report “COMPETITOR ANALYSIS OF

SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” which I am submitting in
order to mark the completion of an 8-week summer project at your organization. This report was
prepared by me using the best of practices and summarizes the work performed on the project and
is being submitted in partial fulfilment of the requirements for award of diploma.

I would like to mention that the overall experience with the organization was very good, and
helped me to know how work is carried out in real practice with the help of your esteemed
organization. I feel honoured that I got an opportunity to work with TVS Motor Company, a
company of great repute.

I hope I did justice to the project and added some value to the
organization. Suggestions/comments would be appreciated.

Yours truly,

Bhargava SaiKumar Sudikonda

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 LETTER OF AUTHORIZATION
I, Bhargava SaiKumar Sudikonda, a student of Birla Institute of Management Technology
(BIMTECH), hereby declare that I have worked on a project titled “COMPETITOR ANALYSIS
OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” during summer internship
at TVS Motor Company, in partial fulfilment of the requirement for the Post Graduate Diploma in
Management program.

I guarantee/underwrite my research work to be authentic and original to the best of my

knowledge in all respects of the process carried out during the project tenure.

My learning experience at TVS Motor Company, under the guidance of J. Naresh Kumar,
Territory Sales Manager, and Prof. R. J. Masilamani, PGDM-IIMA, has been truly enriching.

Date:
(Bhargava Sai Kumar Sudikonda)

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 TABLE OF CONTENTS

S.No. SUBJECT PAGE No.

CHAP 1 EXECUTIVE SUMMARY 13
1.1 PROJECT TITLE 13
1.2 COMPANY NAME 13
1.3 OBJECTIVE 13
1.4 SCOPE 13
1.5 METHODOLOGY 13
1.6 KEY FINDINGS 14
1.7 RECOMMENDATIONS 14
1.8 IMPLEMENTATIONS 14
CHAP2 INTRODUCTION 15
2.1 OVERVIEW OF TWO WHEELER INDUSTRY 15
2.2 EVOLUTION OF TWO WHEELER INDUSTRY IN INDIA 15
2.3 MARKET SHARE OF TWO WHEELERS IN INDIA 16
2.4 CURRENT MARKET 17
2.5 SCOOTER SEGMENT 17
2.6 SCOOTER SALES IN VIJAYAWADA TERRITORY 18
2.7 TVS MOTOR COMPANY 19
2.8 MILE STONES 19
CHAP3 PROBLEM DEFINITION 24
CHAP4 APPROACH TO THE PROBLEM 25
CHAP5 RESEARCH METHODOLOGY 26
5.1 RESEARCH DESIGN 26
5.2 DATA COLLECTION FROM SECONDARY SOURCE 26
5.3 DATA COLLECTION FROM PRIMARY SOURCE 26
CHAP6 DATA ANALYSIS 27
6.1 ANALYSIS OF MYSTERY SHOPPING 27
6.2 JUPITER NON CONSIDERATION SURVEY 30
6.2.1 ANALYSIS OF RESPONSES FROM VIJAYAWADA CITY 30
6.2.2 ANALYSIS OF RESPONSES FROM GUNTUR CITY 35
6.3 STUDY ON RESALE MARKET FOR SCOOTERS WITH 38
FOCUS ON TVS VEHICLES
CHAP7 RESULTS AND CONCLUSION 39
7.1 CONCLUSION 39
7.2 RESULT 39
CHAP8 LIMITATIONS AND CAVEATS 50
CHAP9 RECOMMENDATIONS 51
CHAP10 LIST OF EXHIBITS 52
10.1 QUESTIONNAIRE 52
10.2 PICTURES OF 1ST SUMMER CARNIVAL 53
10.3 PICTURES OF 2ND SUMMER CARNIVAL 54
10.4 MARKETING ACTIVITY AT VIJAYAWADA 55
10.5 MARKETING ACTIVITY AT GUNTUR 56
CHAP11 REFERENCES 57
CHAP12 GLOSSARY OF ABBREVIATIONS 58

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 LIST OF TABLES

TABLE DETAILS PAGE

1 Milestones ofTVS 20
2 TVS Product classification 21
3 Price list of TVS & its competitor products 22
4 Attributes considered for Mystery Shopping 25
5 Attributes considered for Mystery Shopping 27

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 LIST OF CHARTS

CHART DETAILS PAGE

1 Market share of Automobiles in the year 2014-15 16

2 Scooter market in 2013 vs 2014 18
3 TVS Product classification 21

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 LIST OF GRAPHS
GRAPH DETAILS PAGE

1 Sales report of two wheeler companies 17

2 Market share of Activa and Jupiter in Vijayawada Territory 18
3 Average rating of all showrooms in Vijayawada 28
4 Comparison between Vijayawada Industry and TVS 28
showroom in Vijayawada
5 Average rating of all showrooms in Guntur 29
6 Comparison between Guntur Industry and TVS showroom in 29
Guntur
7 Comparison between Age and reason for buying Activa 30
8 Comparison between Age and difference between Activa and 30
Jupiter
9 Comparison between Previous vehicle used and occupation 31
10 Comparison between mode of payment and occupation 31
11 Comparison between Resale value used and occupation 32
12 Comparison between previous vehicle used and main reason 32
for buying Activa
13 Comparison between mode of payment and annual income 33
14 Comparison between considering resale value while 33
purchasing and annual income
15 Comparison between showroom visitors and showroom 34
Ambience
16 Comparison between showroom visitors and showroom 34
Knowledge
17 Comparison between previous vehicle used and occupation 35
18 Comparison between annual income and occupation 35
19 Comparison between Annual income and previous vehicle 36
Used
20 Comparison between Reason for buying Activa and previous 36
vehicle used
21 Comparison between showroom visitors and showroom 37
Ambience
22 Comparison between showroom visitors and showroom 37
Ambience
23 Gender statistics of Vijayawada survey 39
24 Age statistics of Vijayawada survey 40
25 Occupation statistics of Vijayawada survey 40
26 Previous vehicle used statistics of Vijayawada survey 41
27 Annual Income statistics of Vijayawada survey 41
28 Response for most seen vehicle in Vijayawada Survey 42
29 Response for main reason for buying Activa in Vijayawada 42
Survey
30 Response for visiting TVS showroom and considered Jupiter 43
before buying Activa in Vijayawada Survey

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 31 Response for main difference between Activa and Jupiter in 43
Vijayawada survey
32 Response for recommending Activa in Vijayawada survey 44
33 Gender statistics of Guntur survey 45
34 Age statistics of Guntur survey 45
35 Occupation statistics of Guntur survey 46
36 Previous vehicle used statistics of Guntur survey 46
37 Annual Income statistics of Guntur survey 46
38 Response for most seen vehicle in Guntur Survey 47
39 Response for main reason for buying Activa in Guntur 47
Survey
40 Response for visiting TVS showroom and considered Jupiter 48
before buying Activa in Guntur Survey
41 Response for main difference between Activa and Jupiter in 48
Guntur survey
42 Response for recommending Activa in Guntur survey 49

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 LIST OF EXHIBITS

EXHIBIT DETAILS PAGE

1 Questionnaires used for survey 52

2 Marketing Activity in Guntur 53
3 Marketing Activity in Vijayawada 54
4 1st carnival in Vijayawada 55
5 2nd carnival in Vijayawada 56

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 CHAPTER -1 EXECUTIVE SUMMARY

Project Title: “COMPETITOR ANALYSIS OF

SCOOTERS, CUSTOMER RESERVATIONS ON TVS
JUPITER”.

Company Name: TVS Motor Company Limited.

Objective: The objective of the project is to make recommendations for increasing sale of
TVS Jupiter in Vijayawada and Guntur regions.

Scope: Understanding the behavior of scooter customers and the factors they considered
as the most important while making their purchase decision. The study was done in
Vijayawada and Guntur regions.

Methodology Adopted: The data required to measure and understand the competitors is
collected using MYSTERY SHOPPING and SURVEY METHOD.

Key Findings:

 TVS has low brand image in the minds of customer. Honda and Hero are considered major
brands.
 Awareness of TVS Jupiter is less compared to its competitor Honda Activa. Very few
people know about Jupiter and its features.
 Sales executives have limited knowledge about their competitor products.
 TVS is focusing on a push strategy rather than pull.
 Showroom ambience plays a major role in retaining customer.

Recommendations:

 Impart knowledge to sales executives on competitor products.

 There is no more belief that scooter segment is for women, it is better to have both men
and women sales executives for scooter segment.
 Sales executives should do regular follow up with customers and get feedback as also
provide help where needed either through expediting After Sales Service or providing
advice where asked for.
 Proper recruiting of sales executives will have a great positive impact on sale of TVS
products.
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  Run Customer Reward Programs like giving offers to existing TVS customers.
 Proper enquiry quotation should be maintained.
 Adequate availability of spare parts should be ensured at reasonable prices.

IMPLEMENTATIONS:

 Enquiry & Quotation form is implemented for customers at TVS showrooms

in Vijayawada territory.

 Jupiter key chains were distributed as a part of promotional activity to increase awareness.

 Training classes were conducted to sales executives on competitor products.

 Post sale feedback (PSF) is going to be implemented.

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 CHAPTER-2 INTRODUCTION

Overview of the Indian Two Wheeler Industry:

Automobiles constitute one of the largest industries in the global market. Being the leader in
product and process technologies in the manufacturing sector, it has been recognized as a driver
of economic growth.

In the last few years steps like abolition of licensing and various initiatives have been taken to
bring the policy framework in accordance with the WTO requirements to set the industry on a
progressive track. Removal of trade restrictions has helped in restructuring the industry and to
absorb new technologies. This has also led to intense competition and also on the positive side
advancement in technology and better product features.

Evolution of Two-Wheeler Industry in India:

The two-wheeler segment is one of the most important components of the automobile sector and
has undergone significant changes due to shifts in the trade policies in the last two decades. The
two-wheeler industry has been in existence in the country since 1955.The two-wheeler market
was opened for foreign companies in the mid 1980’s which led to an increase in the number of
brands competing and hence the advancement in the features at competitive prices. Indian two-
wheeler industry has seen spectacular growth in recent years. Presently, India is the second largest
producer and manufacturer of two wheelers in the world.It consists of three segments: 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 76 per cent during 2010-11. The high
percentage 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 along-with all
critical areas of functioning of an industry were effectively controlled by the State machinery.
However, some major set of reforms launched in the year 1991 in response to the macroeconomic
crisis faced by the economy shifted the policies 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:

1) Weaker players perished giving way to the new entrants and superior products and

2) Increase in number of brands that entered the market which forced the firms to compete on the
basis of product features.

I believe that the scope of growth in the 2 wheeler industry is lucrative in future because of the
following reasons:

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  There are limited players to enjoy growth. About 95% of the market share is shared
amongst four players of which three are Indian companies (Hero, Bajaj and TVS) the
fourth is Honda.
 Rising income levels of people is also a favorable indication.
 About 70% of India’s population is between 15 to 50 age group. As this age group
comprises bulk of working class so this age group can be of vital importance in deciding
the future of the 2 wheeler segment and the economy as well.
 Rural India accounts for more than 60% of total population of India so this presents a
major opportunity for the 2 wheeler companies.
 There is a considerable difference between two wheelers and car prices that makes two
wheelers the obvious choice for majority of people.

Market share of two wheelers in Automobile industry in India:

According to the latest data by SIAM the total sales of two-wheeler accounts for about 81% of the
total vehicles sold in India, where passenger vehicle accounts for only 13% of total sales.

Market share of Automobile Industry in the

year 2014-2015

3%
13%
3%

Two wheelers
passenger vehicles Commercial vehicles

81%

Chart 1 Market share of Automobiles in the year 2014-15

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Current Market:

Company wise sale of two wheelers Hero leads the market with a market share of 41.12%
followed by Honda and TVS.

Graph 1 Sales report of two wheeler companies

Scooter Segment:

This segment continues to grow mainly due to change in product positioning and entry of new
players. As a product category, scooters have evolved from being a laggard in technology and
characterised by two-stroke engines, higher emissions, and old styling. Scooters have now
acquired more refined engines and contemporary styling. Product positioning has also undergone
a change in the gearless scooters with low kerb weight and self-start, features that appeal to
certain consumer categories like women. HMSI currently occupies the leading position in the
scooters segment with a market share of 56% and drawing on its flagship brand Activa (besides
Aviator and Dio). It is followed by Hero (Pleasure and Maestro) which has market share of 18%
and TVS (Wego, Scooty Pep+, Streak, Zest, Jupiter ), which has a market share of more than
15.2%.

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 Chart 2 Scooter market in 2013 vs 2014

Scooter sales in Vijayawada territory:

Information regarding the scooter Industry in Vijayawada territory is collected from April 2014 to
May 2015 Sale of Jupiter is less till financial year 2014 but they boosted up from April 2015

Market share of Activa and Jupiter in Vijayawada

Territory
80.00%
70.00%
60.00%
50.00%
Axis Title

40.00%
30.00%
20.00%
10.00%
0.00%
2014 201 201 210 201 201 2014 2014 2014 2015 2015 2015 2015 2015
APR 4 4 4 4 4 OCT NOV DEC JAN FEB MAR APR MAY
Market share of MAY JUN JUL AUG SEP
3.16% 4.35% 5.11% 4.69% 6.49% 4.20% 7.07% 5.42% 4.19% 5.50% 4.20% 5.88% 7.00% 8.00%
Jupiter share of
Market 47.5 50% 52% 63% 64% 57% 64% 66% 72% 58% 64% 64% 37% 58%
Activa 2

Graph 2 Market share of Activa and Jupiter in Vijayawada Territory

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TVS Motor Company:

TVS Motor Company - a member of the TVS group is the largest company of the group in terms
of size and turnover. The TVS group has always been inspired by a century-long mission and
vision of its own destiny. It is not just a business but a way of doing business, which sets TVS
apart from others. TVS Motor Company is the third largest two-wheeler manufacturer in India
and one among the top ten in the world, with annual turnover of more than $1 billion in 2008-
2009. It is the flagship company of the $4 billion TVS Group. The company has four
plants located at Hosur and Mysore in south India, Himachal Pradesh, North India and one in
Indonesia. The company has a production capacity of 2.5 million units a year. TVS Motor's
strength lies in design and development of new products, with the latest launch of seven products
on the same day seen as a first in automotive history. TVS delivers total customer satisfaction by
anticipating the customer's need and presenting quality vehicles at the right time and at the right
price. The customer and his ever changing need is its continuous source of inspiration.
TVS has been at the forefront in bringing a revolution in the way personal commutation was
happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the
middle class in India in the 1980s to launching seven new bikes in a single day (first time in the
history of the automotive industry in the world), TVS has often taken the unbeaten path to
innovation.

MILESTONES:

1980 TVS Motor launched India first two-seater 50cc moped -TVS 50

1984 The two-wheeler major became the first Indian company to introduce
100cc Indo-Japanese motorcycles

1994 - It launched India first indigenous scooterette -- TVS Scooty.

1996-97 - Introduced India first catalytic converter-enabled motorcycle, the

110cc Shogun. Launched India first 5- speed motorcycle, the Shaolin.

2000 - Launched TVS Fiero, India first 150cc, 4-stroke motorcycle.

2001 Launched TVS Victor, 4-stroke 110cc motorcycle, India first fully
indigenously designed and manufactured motorcycle

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 2002 TVS becomes the world first two-wheeler company to win the world
most prestigious recognition in Total Quality Management the Deming
Award 2002. TVS wins the Technology Award from Ministry of
Science, Government of India for successful commercialization of
indigenous technology.

2004 Launched TVS Centra, a world class 4-stroke 100cc motorcycle with
revolutionary VT- I engine for best in class mileage. Launched TVS
Star, a 100cc motorcycle ideal for the rough terrain. TVS wins TPM
Excellence award from Japan Institute of Plant Maintenance (JIPM).
TVS wins Outstanding design Excellence Award for TVS Scooty
Pep.
2005-06 TVS launches its Indonesian plant. Launched TVS Apache, which set
the youth imagination on fire. Apache went on to be the Bike of the
year for 2006, winning six prestigious awards.

2007 TVS Motor Company rolls out seven new products. TVS launches its
Himachal Pradesh Plant at Nalagarh.

2008 TVS Motor company bags two coveted IT awards in September

2008 SAP ACE 2008 Award and 2008 Symantec South Asia Visionary
Award

2008 Apache RTR FI was launched

2008 TVS Motor Company launched the revolutionary 125cc Flame

2009 TVS scooty Streak was launched.

2010 Launch of India’s first Automatic Clutch Motorcycle- TVS JIVE.

Launch of India’s first Automatic scooter- TVS WEGO

2012 125 cc premium bike Phoenix was launched.

2013 TVS Jupiter was launched.

Table 1 Milestones of TVS

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[Type Page
4 P’s of TVS Motor Company:

 Product:

Chart 3 TVS product classification

TVS is known for its superior quality and the products having advanced features like Anti
braking system (ABS), continuous variable timing ignition (CVTI) engine and body-balance
technology.

The table below shows the Various TVS products:-

MOTORCYCLE SCOOTER MOPED

Apache RTR 180 ABS Scooty Pep+ XL Super
Apache RTR 180 Scooty Pep (Fashion Series) XL Heavy Duty
Apache RTR160 Scooty Pep
Phoenix 125 drum Scooty Streak
Phoenix 125 disc Wego
Jive Wego fresh
Star City Scooty Zest
Sport Jupiter
Max 4R
Flame
Table 2 Products of TVS

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Price:

1) TVS is known for its competitive pricing strategy.

2) Customers can make the payment by cash, through debit/credit card or by financing.

TVS Ex showroom HERO Ex HONDA Ex

PRICE showroom showroom
PRICE PRICE

Max-4R 48,770 HF Deluxe 46,318 CD110 46561

Sport 45,194 HF Deluxe 48,336 Dream neo 50403

ECO

Star city 48,201 Splendor+ 47,300 Dream Yuga 53733

Apache 160 73019 Splendor 50,800 CB Twister 56045

PRO

Apache 160 75064 Splendor 51,300 CB Shine 64256

(Rear Disc) PRO Classic

Apache 180 78054 Splendor 52,008 CBF 61633

iSmart Stunner

Apache 180 86492 Passion 55,100 CB Trigger 81492

(ABS) PRO TR

Phoenix (drum 55171 Passion 54,300 CB Unicorn 80917

brakes) PRO 160

Phoenix (disc) 57815 Glamour 59,125 CBR 150R 127468

Scooty zest 47130 Hunk 73,992 CBR250R 195728

Scooty pep 43579 Impulse 72,771 Activa 125 64541

Scooty streak 45252 Xtreme 73,800 Activa 3G 52112

Wego 52157 ZMR 107,100 Activa i 48568

Jupiter 51278 Karizma 85,000 Dio 50573

XL- Super 31,690 Maestro 50,613 Aviator 58543

XL-heavy duty 33,400 Pleasure 48,900

Table 3 Price of TVS & its competitor products

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Place:

 For a company, dealers play an important role in serving customers. It also helps the
company to grow and sustain its position in competitive markets. TVS has a robust two
tier distribution network with 784 exclusive dealers along with more than 2000 sales and
service points. This helped the company to maintain TVS’s name and its promise of
reliability to every part of country. The power of such highly efficient and motivated
network goes a long way to create goodwill for TVS Motor Company.TVS has also got
three manufacturing units in the country i.e. Hosur in Tamil Nadu, Mysore in Karnataka
and Solan in Himachal Pradesh and one manufacturing unit outside the country
 The channel of distribution is the ‘authorized main dealer and authorized dealer’ network.
A direct dealer is a dealer who is authorized to purchase the product directly from the
company and sell. An authorized dealer is a dealer who is authorized to purchase the
product from any dealer and sell.

Promotion:

The following promotion variables are considered by TVS for its 2Wheeler segment:

 Brand ambassador: M.S. Dhoni, Captain of Indian Cricket Team, Virat Kohli for TVS
Sport, Tamil matinee idol Surya for TVS Star.
 Tollywood super star Mahesh babu is chosen as the brand ambassador for premium
product “Phoenix 125”.
 Anushka Sharma, Bollywood star for Scooty pep+
 Brand line : ‘Trust, Value and Service’
 Advertising : TV, Newspaper, Magazines, Social Media, Sports like Indian Premier
League (IPL) and TVS Racing
 Sales Promotion: Various schemes are available in the market where customer can avail
best of discount in procurement cost and in financing the vehicle.

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 CHAPTER -3 PROBLEM DEFINITION

Honda Motors has 56% market share in scooters, Hero has 18% market share and TVS is in third
position with 15.2% market share for the FY2015. TVS Jupiter is better in features, specifications
and cheaper in cost compared to Honda Activa. My study is focused on why people are
considering Activa over Jupiter and recommendations I give will help TVS to identify ways to
increase its market share.

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 CHAPTER-4 APPROACH TO THE PROBLEM

Mystery Shopping: I was asked to do Mystery shopping where I visited 14 showrooms in

Vijayawada and Guntur as a customer, measured the following attributes and made a comparative
assessment of all outlets visited.

Sales executives Ambience Sales process

Attire Space management Greeting, reception

Product knowledge Product display Understanding customer needs

Product knowledge of Customer convenience Product presentation

competitor products
Enthusiasm Test rides
Sales closure
Complaint handling if any

Table 4 Attributes considered for Mystery Shopping

Survey: I was given a questionnaire and asked to conduct TVS Jupiter non consideration survey
and analyze survey results. Here customers of Activa were targeted as it has major market share in
scooter segment. As the survey questionnaire is not scale based I did analysis in Microsoft excel.

Sales executive: I was given an opportunity to act as a real time sales executive of TVS in the two
Carnivals they conducted each for 3 days. For the first day I was asked to observe the sales
process at the carnival and understand how the sales executives explain the product to the
customer, what features they were highlighting. Then for the remaining 2 days of first carnival
and 3 days of second carnival I interacted directly with the customers.

Study on resale value: During the Carnival period most of the customers pointed out low resale
value. TVS products carries negative image of low resale value. I did some basic research on
factors affecting resale value, had some face to face interviews with the auto consultants.

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 CHAPTER-5 RESEARCH METHODOLOGY
Research design:

The research design is exploratory in nature. A questionnaire was designed to study Activa
customers, A total of 233 responses were collected. The study focused more on new Activa
customers i.e., customers who bought Activa after the launch of Jupiter in 2013. 131 responses
were collected from Vijayawada city and 102 responses from Guntur city.

Data collection from secondary source:

Secondary data was collected from sources including the company website. The product brochure
was also used to study the technical specifications and features of the product. Society of Indian
Automobile Manufacturers (SIAM) website was used to study the industry trend and market
share.

Data collection from primary source:

The primary data consists of the responses to the questionnaire by the Activa customers in
Vijayawada and Guntur. 131 responses from Vijayawada city and 102 responses from Guntur
city.

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 CHAPTER-6 DATA ANALYSIS

The data gathered was analyzed according to the requirements of the project i.e. to understand
why Activa customers preferred this vehicle over TVS Jupiter. Each question of the questionnaire
was analyzed in depth to develop an understanding on why people are buying Activa and not
considering Jupiter.

The data analysis has been done by using Excel. All the data is entered in to Excel sheets and
using pivot tables the data is analyzed and compared.

Analysis of Mystery shopping:

Mystery shopping is an activity done to observe the competitors’ pre-sales process and compare it
with TVS dealers’ pre-sales process. This observation can be helpful in improving the dealers’
pre-sales process. There are a total of thirteen parameters, which are divided into three segments
for convenience.

Sales executives Ambience Sales process

Attire Space management Greeting, reception

Product knowledge Product display Understanding customer needs

Product knowledge of Customer convenience Product presentation

competitor products

Enthusiasm Test rides

Sales closure

Complaint handling if any

Table 5 Attributes considered for Mystery Shopping

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 Graph 3 Average score of all showrooms in Vijayawada

Graph 4 Comparison between Vijayawada Industry and TVS showroom in Vijayawada

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 8 7.6
7
6 6.2 6 6.2
5.8 5.8 5.8
5
4 4.8
4.4
3
2
1
0 2 2
1.4

Guntur Industry

Graph 5 Average rating of all showrooms in Guntur

9 8 8
8 7.6
7 7 7 7
6.2 6 6 6.2 6
6 5.8 5.8 6 5.8
5
4.8
4 4.4
4
3
2 3
1 22 2
0 1.4

0 00

Guntur Industry PioneerTVS

Graph 6 Comparison between Guntur Industry and TVS showroom in Guntur

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Jupiter non consideration survey:

A total of 14 questions are framed and each question except the Name is analyzed using Microsoft
Excel. Each of the questions were compared with other question.

Analysis for responses in Vijayawada city:

Main reason for buying Activa compared to Age

60.00%
50.00%
40.00%
30.00%
Axis Title

20.00%
10.00%
0.00%

Friends/Fa Based on
Honda
Features Mileage Comfort mily Suggestion
market demand
Brand
12.98% 8.40%
20.00% 8.00%
Overall27.48% 9.16% 2.29% 39.69%
12.20% 12.20%
18-25 years20.00% 16.00% 4.00% 32.00%
8.33% 11.11%
26-35 years31.71% 9.76% 0.00% 34.15%
13.79% 0.00%
36-45 years30.56% 8.33% 2.78% 38.89%
above 45 years24.14% 3.45% 3.45% 55.17%

Graph 7 Comparison between Age and reason for buying Activa

Main difference between Activa & Jupiter

compared to Age
60.00%
50.00%
40.00%
30.00%
Axis Title

20.00%
10.00%
0.00%
Overall

18-25 26-35 36-45 above 45

years 40.00%years 47.06%years 53.57%
years 45.00%
Brand Value46.73% 32.00% 11.76% 7.14% 25.00%
28.00% 41.18% 39.29%
Features of Activa > Jupiter17.76% Activa is well known than Jupiter35.51% 30.00%

Graph 8 Comparison between Age and difference between Activa and Jupiter

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Previous Vehicle compared to Occupation
60.00%

50.00%

40.00%
Axis Title

30.00%

20.00%

10.00%

0.00%
Overall Student Job Business
Scooter Bike 25.95% 0.00% 24.19% 38.00%
First time user TVS moped
38.93% 42.11% 33.87% 44.00%
29.01% 52.63% 35.48% 12.00%
6.11% 5.26% 6.45% 6.00%

Graph 9 Comparison between Previous vehicle used and occupation

Mode of payment compared to Occupation

80.00%

70.00%

60.00%

50.00%
Axis Title

40.00%

30.00%

20.00%

10.00%
Overall Student Job Business
0.00%
Cash 61.83% 68.42% 61.29% 60.00%
Finance 38.17% 31.58% 38.71% 40.00%

Graph 10 Comparison between mode of payment and occupation

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 Considering Resale value compared to
Occupation
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
Axis Title

20.00%
10.00%
0.00%
Yes No

Overall Student Job Business

45.04% 31.58% 51.61% 42.00%
54.96% 68.42% 48.39% 58.00%

Graph 11 Comparison between Resale value used and occupation

Main reason for buying Activa compared to

Previous vehicle
60.00%
50.00%
Axis Title

40.00%
30.00%
20.00%
10.00%
0.00%
Based on
Honda Friends/Fa
Features Mileage Comfort mily market demand
Brand
8.40%
Suggestion 12.98%
8.82% 0.00%
Overall27.48% 9.16% 2.29% 39.69%
5.88% 13.73%
Scooter29.41% 2.94% 2.94% 55.88%
23.68% 10.53%
Bike41.18% 7.84% 1.96% 29.41%
25.00% 0.00%
First time user13.16% TVS moped0.00%
13.16% 2.63% 36.84%
25.00% 0.00% 50.00%

Graph 12 Comparison between previous vehicle used and main reason for buying Activa

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 Mode of payment compared to Annual Income
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
Axis Title

30.00%
20.00%
10.00%
0.00%

less than
Overall 100000 100000-250000250000-400000above 400000

Cash 61.83% 58.62% 52.46% 74.19% 90.00%

Finance 38.17% 41.38% 47.54% 25.81% 10.00%

Graph 13 Comparison between mode of payment and annual income

Considering resale value when purchasing

compared to Annual Income
100.00%
90.00%
80.00%
70.00%
Axis Title

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
less than
Overall 100000 100000-250000250000-400000above 400000

Yes 45.04% 41.38% 55.74% 38.71% 10.00%

No 54.96% 58.62% 44.26% 61.29% 90.00%

Graph 14 Comparison between considering resale value while purchasing and annual income

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Showroom Ambiance compared with Showroom visitors
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Axis Title

Overall Yes
No

Poor Average Good Excellent

17.14% 37.14% 37.14% 8.57%
17.14% 37.14% 37.14% 8.57%
0.00% 0.00% 0.00% 0.00%

Graph 15 Comparison between showroom visitors and showroom Ambience

Sales Executive knowledge compared to

showroom visitors
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
Axis Title

10.00%
0.00%

Poor Average Good Excellent

Overall 5.71% 31.43% 60.00% 2.86%
Yes 5.71% 31.43% 60.00% 2.86%
No 0.00% 0.00% 0.00% 0.00%

Graph 16 Comparison between showroom visitors and showroom knowledge

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Analysis of responses from Guntur city:

Previous Vehicle compared to Occupation

60.00%

50.00%

40.00%

30.00%
Axis Title

20.00%

10.00%

0.00%

Scooter Bike
First time user Overall Student Job Business
TVS moped 19.61% 7.14% 15.52% 33.33%
52.94% 50.00% 56.90% 46.67%
21.57% 42.86% 22.41% 10.00%
5.88% 0.00% 5.17% 10.00%

Graph 17 Comparison between previous vehicle used and occupation

Annual Income compared to Occupation

60.00%

50.00%

40.00%
Axis Title

30.00%

20.00%

10.00%

0.00%

less than 100000 Overall Student Job Business

100000-250000 15.69% 14.29% 10.34% 26.67%
250000-400000
above 400000 50.00% 28.57% 51.72% 56.67%
30.39% 35.71% 36.21% 16.67%
3.92% 21.43% 1.72% 0.00%

Graph 18 Comparison between annual income and occupation

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 Annual Income compared to Previous Vehicle
used

80.00%
70.00%
Axis Title

60.00%
50.00%
40.00%
30.00%
20.00%
10.00% Overall Scooter Bike First time user TVS moped
0.00%
15.69% 25.00% 14.81% 0.00% 50.00%
less than 100000 50.00% 40.00% 46.30% 68.18% 50.00%
100000-250000 30.39% 35.00% 33.33% 27.27% 0.00%
250000-400000
above 400000 3.92% 0.00% 5.56% 4.55% 0.00%

Graph 19 Comparison between Annual income and previous vehicle used

Main reason for buying Activa compared to

Previous vehicle

70.00%
60.00%
50.00%
Axis Title

40.00%
30.00%
20.00%
10.00%
0.00%

Friends/FamBased on
Honda
Features Mileage Comfort ilymarket
Brand
Suggestiondemand
14.71%9.80%
Overall19.61% 8.82% 5.88% 41.18%
10.00%5.00%
Scooter5.00% 15.00% 5.00% 60.00%
3.70%14.81%
Bike31.48% 5.56% 5.56% 38.89%
50.00%0.00%
First time user9.09% 9.09% 0.00% 31.82%
0.00%16.67%
TVS moped0.00% 16.67% 33.33% 33.33%

Graph 20 Comparison between Reason for buying Activa and previous vehicle used

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Showroom Ambiance compared with Showroom visitors
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
Axis Title

0.00%

Poor Average Good Excellent

Overall 10.00% 46.67% 43.33% 0.00%
Yes 10.00% 46.67% 43.33% 0.00%
No 0.00% 0.00% 0.00% 0.00%

Graph 21 Comparison between showroom visitors and showroom ambience

Sales Executive knowledge compared to

showroom visitors
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
Axis Title

30.00%
20.00%
10.00%
0.00%

Overall Yes
No
Poor Average Good Excellent
6.67% 10.00% 76.67% 6.67%
6.67% 10.00% 76.67% 6.67%
0.00% 0.00% 0.00% 0.00%

Graph 22 Comparison between showroom visitors and sales executive knowledge

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Study on resale market for scooters with focus on TVS vehicles:

Resale value:

It is the negotiated price of a vehicle that has already been purchased and used
significantly. Obviously the perception of remaining useful economic life by the buyer
would be a critical determinant of this variable.

I took responses from 20 Auto consultants some of whom have been active in the market for the
past 20 years.

Factors influencing for buying a vehicle:

1. Model (Year of manufacturing)

2. Engine Condition of vehicle
3. Outlook of vehicle : External condition of the vehicle like body paint, damage
though accidents, scratches.
4. Tires condition

Fast moving vehicles in secondary market:

1. Honda
1. Activa
2. Unicorn
3. Shine
2. Hero
1. Passion pro
2. Glamour
3. Bajaj
1. Pulsar
4. Yamaha
1. FZ
2. R15
5. TVS
1. XL-Super, Heavy duty
6. Suzuki
1. Access

Reason for low resale value for TVS:

1. Brand value plays a major role. Honda and Hero are considered as the only brands in
the market.
2. Demand in the market.
3. Spares availability is less in the secondary market.
4. Mechanical work for TVS is difficult compared to Hero and Honda. Engines of TVS
are vertical where it is difficult to repair or replace parts to engine

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 CHAPTER-7 RESULTS AND CONCLUSION

Conclusion:

For TVS, it should have a clear understanding of the competitive advantages and disadvantages of
its products with the competitors. It was also proved that TVS has to improve its products
visibility by employing better marketing communication strategies.

It was also observed that TVS has to improve awareness of Jupiter when compared with the
market leader Honda Activa.

I have done this project to identify the loopholes in the strategies and processes of the company
and to enhance the sales and sustain it is a long term aspect.

Result:

A total of 233 responses were collected. Focused more on new Activa customers i.e, customers
who bought Activa after the launch of Jupiter in 2013. 131 responses were collected from
Vijayawada city and 102 responses were recorded in Guntur city.

Some of the results related to the survey are shown below graphically

Results in Vijayawada City:

Gender:

Graph 23 Gender statistics of Vijayawada survey

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Age:

Graph 24 Age statistics of Vijayawada survey

Occupation:

Graph 25 Occupation statistics of Vijayawada survey

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Previous Vehicle Used:

Graph 26 Previous vehicle used statistics of Vijayawada survey

Annual Income:

Graph 27 Annual Income statistics of Vijayawada survey

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Which of these vehicles do you see/hear more though advertisements?

Graph 28 Response for most seen vehicle in Vijayawada Survey

What is main reason for buying Activa?

Graph 29 Response for main reason for buying Activa in Vijayawada Survey

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Did you visit TVS showroom and consider Jupiter before buying Activa?

Graph 30 Response for visiting TVS showroom and considered Jupiter before buying Activa
in Vijayawada Survey

In your opinion What is main difference between Activa and Jupiter?

Graph 31 Response for main difference between Activa and Jupiter in Vijayawada Survey

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Do you recommend Activa to your friends/family members?

Graph 32 Response for recommending Activa on a scale of 10 in Vijayawada survey

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Results in Guntur City:

Gender:

Graph 33 Gender statistics of Guntur survey

Age:

Graph 34 Age statistics of Guntur survey

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Occupation:

Graph 35 Occupation statistics of Guntur survey

Previous vehicle used:

Graph 36 Previous vehicle used statistics of Guntur survey

Annual Income:

Graph 37 Annual income statistics of Guntur survey

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Which of these vehicles do you see/hear more though advertisements?

Graph 38 Response for most seen vehicle in Guntur Survey

What is main reason for buying Activa?

Graph 39 Response for main reason for buying Activa in Guntur Survey

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Did you visit TVS showroom and consider Jupiter before buying Activa?

Graph 40 Response for visiting TVS showroom and considered Jupiter before buying Activa
in Guntur Survey

In your opinion what is main difference between Activa and Jupiter?

Graph 41 Response for main difference between Activa and Jupiter in Guntur Survey

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Do you recommend Activa to your friends/family members?

Graph 42 Response for recommending Activa on a scale of 10 in Guntur survey

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 CHAPTER -8 LIMITATIONS AND CAVEATS

This project hoped to provide as realistic results as possible. The sample was chosen to be as
representative of the population as could be.

The following are the limitations of the project:

 The sample chosen closely represents the target population but the result may lack
accuracy as the sample size is not very large.
 There is a chance of respondents being biased in terms of product characteristics.

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 CHAPTER -9 RECOMMENDATIONS
 Impart knowledge to sales executives on competitor products.
 Sales executives should be appropriately attired.
 There is no more belief that scooter segment is for women, it is better to have both
men and women sales executives for scooter segment.
 Sales executives should offer every prospective customer for a test ride.
 Understanding customer needs is very important which build up brand.
 Sales executives should do regular follow up with customers and get feedback as also
provide help where needed either through expediting After Sales Service or providing
advice where asked for.
 TVS Motors should be able to attract customers by giving discount if they buy on the
same day or the following day.
 Proper recruiting of sales executives will have a great positive impact on sale of
TVS products.
 Giving more and flexible finance options can attract Income groups below 250000 per
annum.
 Run Customer Reward Programs like giving offers to existing TVS customers.
 Encourage dealers by giving incentives if they achieve targets.
 Proper enquiry quotation should be maintained.
 Collect contact information of customers who visited TVS showroom and use it to follow
up.
 TVS Jupiter should be promoted as more comfort scooter because around 60% answered
comfort as main reason for buying Activa.
 Adequate availability of spare parts should be ensured at reasonable prices.
 Brochure stands at every showroom should be mandatory.
 Quality after sale service makes customer loyal to the company increase the
publicity though word of mouth.

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 CHAPTER-10 EXHIBITS
Questionnaire:

Name (optional): Gender: Male ( ) Female ( )

Age: 18-25years ( ) 26-35years ( ) 36-45years ( ) above 45 ( )

Qualification: Student ( ) Job ( ) Business ( ) Previous owned Product:

Annual income (of father if student)

Less than 100000 ( ) 100000 – 250000 ( ) 250000-400000( ) Above 400000 ( )

1. Which of these vehicles do you see/hear more through advertisements?

Honda Activa( ) TVS Jupiter ( ) Suzuki Access ( ) Hero Maestro ( )

2. What is the main reason for buying Activa?

Honda Brand ( ) Features ( ) Mileage ( ) Comfort ( ) Friends/family suggestion

( ) Based on Market Demand ( )

3. Did you visit TVS showroom and considered Jupiter before buying Activa?

Yes ( ) No ( )

4. If yes how is TVS showroom

a) Ambiance Poor ( ) Average ( ) Good ( ) Excellent ( )

b) Sales executives’ knowledge Poor ( ) Average ( ) Good ( ) Excellent ( )

5. In your opinion what is main difference between Activa and Jupiter?

Brand Value ( ) Features of Activa > Jupiter ( ) Activa is well known than Jupiter ( )

6. Which mode of payment did you made? Cash ( ) Finance ( )

7. Do you consider resale value while purchasing? Yes ( ) No ( )

8. Do you recommend Activa to your family/Friends?

0 1 2 3 4 5 6 7 8 9 10

Never For
sure

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Pictures of summer 1st carnival:

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Pictures of summer 2nd carnival:

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Marketing activity at Vijayawada:

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10.3 Marketing activity at Guntur:

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 CHAPTER-11 REFERENCES

http://www.siamindia.com/

http://www.tvsmotor.in/

www.automobileindia.com
http://auto.indiamart.com
Indian two-wheeler industry: back on growth path – ICRA

Indian Two-Wheeler Industry, ICRA Sectoral Analysis

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 CHAPTER-12 GLOSSARY

Following is the list of abbreviations used in the report in an alphabetical order:

1) ABS - Anti breaking system

2) i.e. – That is

3) SIAM – Society of Indian Automobile Manufacturers

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