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BACHELORS OF MANAGEMENT STUDIES ACADEMIC YEAR 2011-2012
COLLEGE NAME: NES RATNAM COLLEGE OF ARTS, SCIENCE AND COMMERCE. BHANDUP (W), MUMBAI-400601.
SUBMITTED BY: RANJANI VISHWANATHAN ROLL NO.40
“ADAPTATION OF UNIQUE STRATEGIES & INCREASING PENETRATION OF TVS SCOOTY AMONG ALL GENDER”
BACHELORS OF MANAGEMENT STUDIES SEMESTER V
In partial fulfilment of the requirement for the award of the Bachelor in management studies.
By: RANJANI VISHWANATHAN ROLL NO: 40 COLLEGE NAME: NES RATNAM COLLEGE OF ARTS, SCIENCE AND COMMERCE. BHANDUP (W), MUMBAI-400601
I Ranjani vishwanathan the student of bachelors in management studies semester V year 2011-2012 hereby, declare that I have completed the project on “ADAPTATION OF UNIQUE STRATEGIES & INCREASING PENETRATION OF TVS SCOOTY AMONG ALL GENDER” The information submitted is true and original to the best of my knowledge.
NAME: RANJANI VISHWANATHAN ROLL NO. 40
................................ STUDENT‟S SIGN [RANJANI VISHWANATHAN]
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TABLE OF CONTENTS
EXECUTIVE SUMMARY INTRODUCTION OBJECTIVES FEATURES SCOPE OF MARKETING RESEARCH METHODOLOGY SALES OF TVS SCOOTY-WEGO AUTOMOBILE INDUSTRY SOME OF THE FEATURES DESERVING IN RESPECT OF TWO WHEELER SEGMENT IN INDIA
ANALYSIS AND INTERPRETATION OF TVS SCOOTY
ABOUT TVS SCOOTY VISION STATEMENT
13 14 15 16 17
SIGNIFICANCE OF TVS SCOOTY MARKETING MARKETING OBJECTIVES IMPORTANCE/BENEFITS OF MARKETING KNOWLEDGE OF BUYING MOTIVES
18 19 20 21 22 23 24
MEDIA PLAY A VITAL ROLE FOR PROMOTION PRODUCT SALES & HIERARCHY OF COMMUNICATION MODEL TAG LINES OF MEDIA MARKETING SHOWING STRATEGIES RATE THE MEDIUM OF ADVERTISING THAT YOU COME ACROSS THE MOST? DO YOU KNOW ABOUT TWO WHEELER-WEGO? INFLUENCE ON AGE OF BUYING DECISION DESCRIPTION WHY DO YOU HAVE TO USE TVS-WEGO
25 26 27
WHICH SCOOTY DO YOU USE? WHAT MADE YOU TO BUY WEGO? ARE YOU SATISFIED ABOUT THE EXPLANATION ABOUT THE BENEFIT/FEATURES/WARRANTY OF VEHICLE?
5 SOURCES OF INFORMATION
29 30 31 32 33 34 35
WHY DO YOU THINK THAT WEGO IS EASY TO DRIVE? WHY DO YOU THINK THAT IT HAS A BODY BALANCE? HOW DO YOU RATE THE METTALIC BODY OF WEGO?
IS WEGO A FUEL EFFICIENT SCOOTY? HOW DO YOU RATE THE PRICE OF WEGO? DEALER OF TVS IN ANDHERI FOR TEST FRIVE
Depth of sales of a particular product in a given market. The deeper the penetration, the higher the volume of product sales. In order to expand the sales of current products in markets where their products are already being sold, marketers utilize market penetration strategies such as cutting prices, increasing advertising, obtaining better store or shelf positions for their products, or innovative distribution tactics. TVS Scooty is the market leader in the Indian scooty market for women & also all gender – Wego. Scooty is a brand targeted on young girl for scooty and well Wego for all gender. Scooty had been in the market since 1994 and over a period of time has evolved substantially in style and features that it offers. TVS Scooty is the market leader in the young girls & wego for all gender segments. The brand straddles both the big town confident and aspiring girl and the small town hesitant girl and wego for all gender. The brand is retailed across 600 TVS distributors and an equal number of multi brand outlets. The current problem facing the company is how to increase penetration of scooters among girls and Wego for all gender? How to make scooters an absolute necessity for young girls and Wego for all gender across town classes and thereby explode the market for scooters among women and wego for all gender?
Adaptation of Unique Strategies & Increasing Penetration of TVS Scooty - „Wego‟ among All Gender
Today youth in India are leading the change in different fields as can be witnessed Across the different strata in the society. Youth are ambitious for themselves and are moving ahead to prove their potential. Youth today enrol in various programmes to enhance their skills (like computer classes, entrance test preparations) which are besides regular classes and tuitions. This essentially means that they are running against time and there is a need to do more and more in less and less time. Though this is true for girls across town and income classes, we still have the small town girl who is still a little hesitant/restricted by societal norms to step ahead in the open to prove herself. Given the need to achieve, anything that enables girls/women/boys to realize their true potential is more than welcome. This is where personal mobility plays a big role. Personal mobility not only reduces dependence and saves time but also allows girls to explore different avenues to realize their potential to the fullest. Though there is a definite felt need for mobility among women; they are not taking to riding in a big way.
The current scooter penetration (among women and Wego for all gender in the riding age of 18-45 years) in India is only around 4% and this decreases further as we go down town class and income class. Even in metros/mini metros the penetration of scooters is only around 15%. This is low when compared to penetration of other white goods and consumer durable like mobile phones. Despite new launches in the category and other initiatives by leading players, the penetration of scooters has not gone up significantly. Scooters are currently growing at 10% annually.
To understand the consumer‟s attitude towards TVC products of the Automobile sector To understand the unique strategies by TVS – campaign in college. How Media plays a role in promotion of TVS sooty To understand the influence of advertising on consumer behavior towards them. To find out the most preferred brand. To know how TVS sooty. To know 3600C penetration level
FEATURES OF TVS SCOOTY
TVS isn‟t exactly new to the gearless scooter segment, with Scooty and its variants, the Pep, pep+ and the streak all stand testimony to the companies experience in this field, with almost endless waiting periods for the current market leader, the Honda Activa, it was inevitable that TVS would come up with a rival against the Japanese giant.
We take a close look at the machine and wonder if this two – wheeler has what it takes to grab the hearts of prospective scooter buyers. The Wego was first launched along with the Jive back in November 25, 2009, TVS claimed to have spent a whopping 50 crore developing this machine which is designed and marketed to be family friendly unlike the Scooty which was for the Ladies. Priced slightly higher than the competition by about 1000Rs, the Wego has plenty of features worth mentioning along with the good looks.
Looks and Features: The styling is best described in one word „Edgy‟, it features muscles and curves all around its metal body with sharp looking indicators just like on the Scooty streak and the white color that seems to have been lifted straight from the RTR 180, its far from the conservative design language of the Activa and the Duro. On closer inspection of the Wego, TVS‟s trademark attention to detail in the design can be seen, take for example the air vent below the seat, while most designers would be happy to go ahead and put two holes there, TVS has given the Wego a cool looking transformers-logostyle air vent, complete with a plastic mesh.
The tail lamps, they may seem ordinary but the three inverted-U shaped optical tubes is almost identical to the tubes used on BMW cars to light up their brake lights and corona rings.
The very well done stitching on the rear seat and the design of the rear grab rail both speak volumes about the effort that has been put into the creation of this scooter, even under the seat there were no wires, imperfections or mechanical bits visible, the key too followed the same tradition with a new fob design that makes it look like it was of a car. The 12” inch silver alloy wheels with its unique design also helps to set this bike apart from the crowd.
Overall, the Wego definitely looks more stylish than the Activa but might not go down as a good looking machine with everyone out there, particularly the older crowd; it seems to suit a younger buyer with its energetic lines. Looks aside, on the features front, the bike does have quite a lot to offer, firstly it features an all metal body which is different to the Scooty‟s which features a fiber shell, the metal ensures longer life, stability due to the added weight, and durability in the event of bumps and dents, there have also been two patented features on the Wego, one is the EZ Stand, this is a spring operated stand with a long kick lever, its designed and positioned in a way that makes it amazingly easy to put the bike onto the centre stand, on testing it we found that it takes less effort, to place the bike on the main stand, than lifting a bag of rice provided the kick lever was firmly pushed to the ground, another patent has been applied for TVS‟s Body Balance Technology, more about this in the Handling section, this technology is a mix of components that enable the rider to have maximum steering ability and maneuverability in traffic or at cruising speeds. The Wego also features 12 inch alloy wheels for both front and back which is fitted with
newly designed TVS Tyres. The scooter features twin telescopic front shock absorbers and a gas filled rear spring.
There isn‟t any disc brake option for the bike and it features drum units for both front and rear. Another interesting feature is the integrated front storage compartment, this compartment isn‟t an add – on accessory that seems to have been bolted into place like on the Activa, it is part of the standard package, the fuel lid is positioned right behind the seat and can be opened by inserting a key on the left rear side of the bike, turning the key to the right opens the fuel lid and the key can be turned to the left to open the seat.
Other features include a hook beside the ignition key slot for hanging bags or groceries weighing less than 3 Kg‟s, an optional under seat 12V socket for mobile charging and an illuminated key ring. Engine Performance and Drivability: The engine on the Wego is an all new, all aluminum unit designed with two key principles in mind, low noise and less friction. On paper, it is a 109cc engine that produces 8.1 Bhp of power. The same basic engine was also featured on the Jive, TVS‟s „no tension bike‟. On the test bike I was given the battery was disconnected since it had just arrived from the factory. So the only option was to kick start it. I put it into the main stand and kept kicking it, on the third kick, the lever went all the way down without any resistance and got me worried for a second, it‟s only when I touched the seat that I felt that the engine was on, this wasn‟t a noisy place at the centre of town, it was a showroom on the side of a deserted highway at noon, and still the silence of the engine really made an Impression As I got on the highway, accelerating at full throttle, I remember a smile being put on my face by the scooter as I went on with the journey, there was an eerie silence
about the engine, it literally felt like the Wego was running on butter instead of petrol, the engine was that smooth and quiet, yet, TVS doesn‟t mention this remarkable characteristic in any of the ads of the Wego, the company seems to be following a policy of „Promise less, Deliver more‟. Riding without a pillion, I felt that the scooter had a decent level of pickup and acceleration; it was really hard to compare it to my friends Honda Activa I rode later that day simply because of the lack of engine noise.
In an Activa, on hard acceleration, the engine purrs audibly and the acceleration can really be felt and due to the lack of the rev counter, the engine noise can help in judging how fast the bike is accelerating in relation to the speed, but on the Wego due to the suppressed sound, all there is, is the feeling of gliding along, slowly getting faster and faster. Hence, in terms of a real world comparison of the two scooters, the Activa felt slightly faster, this might be due to psychological factors or because of the fact that TVS has turned its scooter for better mileage than the rest. In the cities too, the engine feels stress free and ready to move at every twist of the throttle, with the ambient noises in city
areas, it felt like driving an electric scooter around. Overall, in the engine and performance department, the Wego was impressive, not for its power, but for its amazing refinement, I honestly have yet to come across a bike or a scooter that has an engine that feels so pure and so smooth. With almost zero noise, there‟s no doubt that it‟s a job well done by TVS. Ride, Handling and Ergonomics: The initial part of the test session covered deserted highways which had a glass like smoothness to them, needless to say, the bike felt rock solid on these roads, it was without a doubt, nimble and sporty, requiring nothing more than a slight twist of the hip to lean the bike, the bike did have great lean angles but the centre stand was always eager to touch the ground when turning to the left.
At cruising speed, the Wego can take turns like a bee and is quite fun to ride too, but our Indian roads in general are far from glass-smooth so I found a path of bumpy inner roads to give the suspension a good work out.12” wheels are standard at both the front and rear and also, the front end sports dual telescopic
arms and the rear houses a single gas filled shock absorber, though the rear suspension took every bump and pothole with smiles, the front suspension was quick to transmit some of the bumps onto the handlebars, it wasn‟t the most pleasant experience having my hands shaking like it was on a tractor engine while going through some rough patches. But, the rear felt really comfortable, the seat, though it seems flat, is actually curved well once a rider sits on it and is also soft, this added to the ride quality of the scooter and made up for the hard front end. To be honest, with the 12” wheels, I had expected a little more. But things started to get into the right perspective once I started using the brakes really well, the Wego, on hard braking, felt just like a two wheeler should feel, planted and secure.
The front end dives in well and gives a great amount of feedback about the level of grip on the tires; this was more bikes – like and did not feel awkward even when the front brakes were tried on a patch of mud. It feels predictable and safe on braking despite the use of drum brakes. The 12” wheels also added to the feedback of the whole setup. Rubber quality, to say the least was good and it
definitely felt a lot better than the ones used on the Scooty but not quite up to Activa standards. Speaking of the Wego‟s braking in comparison to the current market leader, Activa, its almost entirely different, the Activa features a bottom link, spring loaded hydraulic damper at the front, on the road this meant that the front of the bike actually rises up on applying the brakes, which can feel odd and also unpredictable on muddy roads, this issue is non-existent on the Wego since it uses the bike-like telescopic Suspension System. In the city though, TVS‟s „body balance tech‟ made its presence felt, with the least amount of effort required to flick the bike in and out of traffic, and roads. This technology, in my opinion consists of the 12″ wheels, telescopic suspension in front, the comparatively higher ground clearance and a well implemented front – rear weight distribution. The good brakes on the scooter also lent a bit of confidence for taking it around at above average speeds. Overall, in the handling department, the bike felt refreshing; it was sporty, nimble, predictable and confidence inspiring, at the cost of being slightly bumpy on bad roads. Not bad at all.
THE VERDICT The Wego is definitely an impressive machine; it‟s got some really appealing looks especially in that White color, sporty handling, good ride comfort, lots of storage space, mileage, and best of all, refinement. This scooter, without a doubt goes into my books as the quietest two wheeler I have ever ridden. Looking at the scooter segment from a business point of view, the Activa led the market due to its very conservative and simple looks which appealed to everyone from youngsters to adults, the Wego though has a more energetic styling, one that the younger buyers would love and the older customers may loathe. On the whole it‟s a welcome addition to the 110cc scooter segment. With the level of refinement and class that TVS has managed to cram into this little scooter, we wouldn‟t be surprised if the Wego took a big bite into the pie, the Activa had all to itself. SCOPE OF MARKETING Product planning & develop Pricing Advertising & publicity Packaging Branding & labelling After sales service Recruitment, selection, training & motivating of sales personnel (sales forces) etc.
The Production concept: It holds that consumer will prefer products that are widely available & inexpensive.
The product concept: It holds that consumer will prefer those products that offer the most quality performance or innovative features.
The sales concept: It holds that consumer & business if left alone will ordinarily not but enough of the organization product, the organization must therefore undertake an aggressive selling & promotion effort . The marketing concept: It holds that the key to achieving its organizational goals consist of the company being more effective than competitors in creating, delivering & communicating customer value to its chosen target market
The Societal marketing concept: It holds that the organization task is to determine the needs, wants ,& interest of target markets & to deliver the desired satisfaction more effectively & efficiently than competitors in a way that preserves or enhances the customers & society well being
Target Population: Population of the research is the consumers who are well aware of the two wheeler segment (TVS sooty) and who are above 18 years of age Research Design : Descriptive Research Sampling design: Same as the sample element Sampling Technique: Convenience sampling Sample Size : 100 sampling units selected from the Target population Contact Method: Researcher have contacted sampling units personally and with the help of one to one interaction researcher have conducted survey. Also using face book and friends. Extent: The location considered by the researcher is Mumbai city.
Sales of TVS scooty-wego Two- wheeler sales in the country have sky rocketed in the recent years, and the annual sales of motorcycles in India expected to cross the 10 million mark by 2010. The low penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004) leaves immense scope for the growth of the market. Overall the industry sales of two-wheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country. The share of motorcycles have increased over the years, while that of other two-wheelers like geared scooters, scooters and mopeds have shown a negative growth or remained stagnant. The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets, thus it leaves an immense scope for the market to grow.
Category Passenger 1,061,572 1,143,076 1,379,979 1,549,882 1,552,703 Vehicles Commercial 318,430 351,041 467,765 490,494 384,194 Vehicles Three 307,862 359,920 403,910 364,781 349,727 Wheelers Two 6,209,765 7,052,391 7,872,334 7,249,278 7,437,619 Wheelers Grand Total 7,897,629 8,906,428 10,123,988 9,654,435 9,724,243 (Number of Vehicles) 2010-11 2,520,421 676,408 526,022 11,790,305 15,513,156
AUTOMOBILE INDUSTRY Automobile Domestic Sales Trends 2004-05 2005-06 2006-07 2007-08 2008-09
2009-10 1,951,333 532,721 440,392 9,370,951 12,295,397
India is on every major global automobile player's roadmap, and it isn't hard to see why: India is the second largest two-wheeler market in the world Fourth largest commercial vehicle market in the world 11th largest passenger car market in the world Expected to be the seventh largest by 2016 Robust production
GROSS TUNROVER OF THE AUTOMOBILE INDUSTRY IN INDIA
Year 2004-05 2005-06 2006-07 2007-08 2008-09
(IN USD MILLION)
20,896 27,011 34,285 36,612 38,238
Conversion Rate Rs.40 = 1USD
Domestic Market Share for 2010-11 Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers 16.25 4.36 3.39 76.00
Automobile Production Trends Category Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total 2004-05 2005-06 2006-07 2007-08 2008-09
(Number of Vehicles) 2009-10 2010-11
1,209,876 1,309,300 1,545,223 1,777,583 1,838,593 2,357,411 2,987,296 353,703 391,083 374,445 434,423 519,982 556,126 549,006 500,660 416,870 497,020 567,556 619,194 752,735 799,553
6,529,829 7,608,697 8,466,666 8,026,681 8,419,792 10,512,903 13,376,451 8,467,853 9,743,503 11,087,997 10,853,930 11,172,275 14,057,064 17,916,035
Automobile Exports Trends
(Number of Vehicles) Category Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers Grand Total 2004-05 2005-06 2006-07 166,402 175,572 29,940 40,600 66,795 76,881 366,407 513,169 198,452 49,537 143,896 619,644 2007-08 218,401 58,994 141,225 2008-09 335,729 42,625 148,066 2009-10 446,145 45,009 173,214 2010-11 453,479 76,297 269,967 1,539,590
819,713 1,004,174 1,140,058
629,544 806,222 1,011,529 1,238,333 1,530,594 1,804,426 2,339,333
Some of the features that deserve attention in respect of the Indian two wheeler segment in India:
The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units.
The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level.
The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2006-07.
India is likely to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2006-07.
Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore).
Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers.
ANALYSIS AND INTERPRETATION OF TVS SCOOTY WITH RESPECT TO OTHER TWO WHEELER. Because of the time and resource constraints it‟s difficult to reach out cities Other than Mumbai (specific area about 10 km from my resident) to conduct exploratory research thus may not give a true picture of the original population
Planning to use email questionnaire with an underlying assumption that all Potential scooter has access over internet which night not be true
Demand and Growth Trend (Problem being addressed)
As per the CRISIL Research Data, ungeared scooters have grown at around 18% from 2002-2007 and are expected to grow around 14-12% over the next 5 years. But the main issue related to the ungeared scooter growth is its low penetration. The addressable female population in total wheeler markets is almost 50% but it contributes to less than 10%of the total demand. As per CRISIL, the penetration rate
presently is 9% and even after the expected growth rate 14-16%, the expected penetration would not be more than 17% by 2011-2012
Even with an under penetrated market, buoyed by demand from college girls and Housewives, the gearless scooter segment has emerged as the second largest category in the two-wheeler segment, after bikes. After the phenomenal growth of the youngest entrant HMSI of 59%, the player likes Suzuki, Yamaha to add scooters to their India product line. The two-wheeler manufacturers are fast revving up their strategies to tap this growing segment and the segment has shown many of recent launches in last few months. 2007 saw the launch of the two wheelers like
Kinetic‟s Flyte Bajaj Kristal Suzuki Access
2008 is likely to be all the more exciting, with Bajaj Auto Ltd (BAL) unveiling and Honda Motorcycle & Scooters India (HMSI) coming up with a premium scooter Aviator, taking the total number of launches in the segment to five in less than a year.
While most of the scooters have positioned themselves as both women‟s and men‟s segment, the positioning of Scooty, Hero Honda Pleasure and newly launched Kinetic Flyte have been completely women oriented. I consider these two as main competitors of TVS Scooty.
Hero Honda Pleasure
The most aggressive entry in the women‟s‟ scooter segment was of Hero Honda Pleasure in 2006. Targeting towards women of 18‐25 years, the Hero Honda product has adopted an entirely women‐oriented positioning for its first launch in the segment and we found it to be the most potential competitor of TVS Scooty. The highlights of Hero Honda Pleasure‟s marketing Strategy
Flyte comes from the collaboration between India‟s leading scooter manufacturer Kinetic Motor and Taiwan‟s $1.1 billion automotive giant SYM. Flyte is targeted at women, the fastest growing two‐ wheeler buyer segment in the country. It is user‐ friendly, innovative and equipped with updated technology. Bollywood‟s
successful and well known actress Bipasha Basu has been selected as its brand
ambassador. Flyte is loaded with numerous features, which the Indian market has been exposed for the first time.
Population / Sample
To comprehend the triggers and barriers and the decision making process involved for The laying out a method of increasing penetration we need to derive insights from the survey of users/non users (women), parents and husbands as well as the dealers of the two wheelers. Recent Communication strategies by different companies
Table Brand Commercial Highlights and Targets
From the table below we see that the communication by all the companies practically hovers around the similar concept of fashion, style and women empowerment and upliftment rather than the actual functionality of the product.
ABOUT TVS SCOOTY INDUSTRY
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 USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group. A bike for anyone TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. Motorcycles (Apache RTR 180, Flame DS 125, Flame, TVS Jive, Star City, Sports) Variomatic Scooters (TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teens) Mopeds (TVS XL Super, TVS XL Heavy Duty)
TVS Motor Company - Mission We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfilment and prosperity for employees, dealers and suppliers.
TVS Motor - Driven by the customer
TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time. TVS Motor - The Industry Leader TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia.
TVS Motor - Global overview TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover. TVS Motor - At the cutting edge
TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders.
TVS Motor - Committed to Total Quality TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motor believes in the importance of the process. People and projects will be evaluated both by their end results and the process adopted.
TVS Motor - The Human Factor TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people. There will be a sustained effort through systematic training and planning career growth to develop employee‟s talents and enhance job satisfaction. TVS Motor will create an enabling ambience where the maximum self-actualization of every employee is achieved. TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth. TVS Motor - Responsible Corporate Citizen TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all business activities and ensures protection of employees and environment including development of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers .
TVS Group - 100 years young The TVS group has always been inspired by a century long mission and vision of its own destiny. it is not just a business but a way of doing business, which sets TVS apart from others.
Back in 1911, to the founder of the company, the ordinary ambitions of a bus fleet operator or a vehicle servicing business would not suffice. Rather, he wanted to create an enduring business led by a family of likeminded workers and managers united by a set of shared high principles. Driven by this inspiration, the TVS group has today emerged as India's leading supplier of automotive components. Today the TVS Group is the largest automotive component manufacturer in India, with annual turnover of more than USD 4 billion.
The group has over 30 companies employing a work- force of 40,000 people.
Underlying the success of the group is its philosophy of commitment to the cherished values of promoting trust, value and customer service. This was the personal philosophy of the Group's Founder Shri T V Sundaram lyengar, and it remains the overarching code by which the Group functions. Market leadership and rewards of business have followed naturally.
The inspirational heritage
Although the letters TVS represent the initials of our founder, T V Sundaram lyengar, to us within TVS they have always stood for Trust, Value and Service. The founder of the company embodied these values and set an example for all employees to emulate.
VS believe that the success of any enterprise is built on the solid foundation of customer satisfaction.
Continuous innovation and close customer interaction have enabled TVS companies to stay ahead of competition. Quality at TVS determines not only the end product but the systems, processes and operations at all levels. The first four companies in India, which have won the coveted Deming Prize are from the TVS group.
The business ranges across automobile component manufacturing, components distribution, manufacturing of powered two-wheelers, computer peripherals, financial services, contract manufacturing services and software development.
TVS Motor company Ltd (TVS Motor)- member of the TVS group is the largest company of the group in terms of size and turnover.
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 USD 1 billion in 2007-2008, and is the flagship company of the USD 4 billion TVS Group A bike for anyone TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. Export Performance Award TVS Motor Company has been awarded 'Star Performer - Silver Shield' in two/three wheelers category, by EEPC India, for excellent export performance for year 2007-08. TVS Motor Company has been awarded 'Star Performer - Silver Shield' in two/three wheelers category, by EEPC India, for excellent export performance for year 2007-08.
Marketing is the backbone of the business. Today, marketing becomes the lifeblood of the business. It is an essential activity for the satisfaction of human wants and for raising social welfare. Production is base of marketing. Marketing links producers and consumers together for mutual benefits. Production will be meaningless if goods produced are not supplied to consumers through appropriate marketing mechanism. Marketing activities are conducted with the medium of money .all exchanges are made through money. Such activities are conducted regularly throughout the world. Modern marketing is global in character. Every participant in marketing activities for the satisfaction of needs. Marketing is the world‟s oldest profession. In short, marketing is the study of exchange processes. Definitions of marketing: Philip kotler has defined as “marketing is human activity directed at satisfying needs and wants through exchange processes” American marketing association (AMA) defined marketing includes all activities having do with effecting changes in the ownership and possession of goods and services. It is that part of economics which deals with the creation of time and place and possession utilities and that phase of business activity through which human wants are satisfies by the exchange of goods and services for some valuable consideration “
Marketing is managing profitable customer relationships. Attracting new customers Retaining & growing current customer “Marketing” is not synonymous with “sales” or “advertising”
1 Marketing management is “the art & science of choosing target markets & building profitable relationships with them” 2 Creating, delivering & communicating superior customer value is key. 3 Customer management: - marketers select customers that can be served well & profitably. 4 Demand management: - marketers must deal with different demand states ranging from no demand to too much demand.
Importance / benefits of marketing Satisfying human wants
Provides profit & goodwill to marketing enterprise Improves the standard of living of the society Brings economic growth Provide channel of communication to business firms Facilitates price control Create utilities Facilities introduction of new items
KNOWLEDGE OF BUYING MOTIVES:
Increased turnover of the organization depends upon the successful handling of customers. If the company wants to sell its product in the market it must know why people buy different articles. All customers buy in order to satisfy their wants and desires. However this desire is not exactly same with all customers. The buying motives are emotional in the character. Buying motive is the base of the buying behavior of a customer. They include strong feeling, urge, desire, drive or stimulus that makes a person to take the decision to buy. Buying motive encourages the people to buy specific goods. According to Prof. Duncan “buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purpose of goods or services.” In simple words, buying motives are the thoughts, emotions and instincts, which arouse in the mind of the customer a desire to buy. Buying motives are the aims or objectives due to which a customer decides to buy a specific article or product. The following are some important buying motives: 1. Fear: One of the important motives is fear. It may be fear of death, fear of loss, fear of the future, fear of property etc. tactful sales talk bringing the appropriate fear into prominence would motivate the prospect into immediate action. This motive sells all types of insurance, vitamin pills, burglar alarms, etc.
Relationship between fear levels and massage acceptance
Acceptance of message
Level of fear
Resultant No monotonic Inhabiting effects curve
Before deciding to use a fear appeal based massage strategy, the advertiser should consider how fear operates, what level to use and how different target audiences may respond. One theory suggests that the relationship between the level of fear in the massage and acceptance of persuasion is curvilinear, as shown in the diagram. This means that massage acceptance increases as the amount of fear used rise – to a point. Beyond that point acceptance decreases as the level of fear rises. This relationship between fear and persuasion can be explained by the fact that fears appeals have both facilitating and inhabiting effects. A low level fear can have facilitating effects; it attracts attention and interests in the massage and may motivate the receiver to act to resolve the threat. Thus increasing a level of fear in a massage from low to moderate can result in increased persuasion. High levels of fear however, can produce
inhabiting effects; the receiver may economically block the massage by turning it out, perceiving it selectively or denying its arguments outright.
The above diagram illustrates how these two counter effects operate to
produce the curvilinear relationship between fear and persuasion. 2. Profit/ gain: Every person purchases a product because he gains out of it. He weighs the merit of the product against its price to decide whether to buy it or not. If the advertiser has proper product knowledge and knowledge of selling points he can easily prove to the prospect that his product is more beneficial than the product of competitors. Moreover by offering some discount and concessions or by explaining about gift schemes he can easily induce the prospects to purchase the product.
3. Vanity: It is excessive pride. People possessing this buying motive have a superiority complex. Therefore through advertising companies can increase their sales by explaining this motive properly e.g. a customer can be easily persuaded to purchase a particular product by watching ads that explains to him that he can improve his social status by purchasing such a useful item. Then he may be convinced to purchase it even if he does not really require it.
4. Fashion: Fashion is based on crowd psychology. Fashion can be described as the desire to imitate what others are doing. It is closely linked up with pride or desire for importance. A young man purchases the latest style of sports clothes or the businessman installs a well-known cooling system in his office, each one is motivated by the desire to show superiority and be in fashion.
5. Sex or Romances: Sex is very important in case of sale of articles such as fancy clothes, cosmetics, etc. This is mainly because of attraction of opposite sex.
6. Love and Affection: This is an unselfish motive. Many men can be motivated into immediate action by an appeal to their sense of duty or love for their family or their desire to be of service to humanity, e.g. a father purchases toys for his daughter out of love.
7. Physical Well-being or Health: Everyone likes to be fit and healthy. Products like tonics, vitamin pills etc. can be sold by an advertisement by exploiting this buying motive. The reason for success of health centres today is due to possession of these buying motives among prospects.
8. Comfort and Convenience: Many products are purchased because people want to feel comfortable. Therefore advertiser should properly understand this motive and exploit it to increase sales e.g. he can easily convince a working lady to purchase a refrigerator by explaining that she can cook in the morning and store it in a fridge when she is away for work. She can just warm up the food after she comes back from work. This will make her job very easy. Consumer goods like Pillsbury Atta, Knor soups, Maggie can be easily sold by exploiting this buying motive. 9. Curiosity: Psychologists describe „Curiosity‟ as a desire for new experience or to know the latest things in the market. Products like books, papers, magazines are sold on a large scale due to this buying motive. Moreover travel agencies make profits due to curiosity of people to know about new places.
10. Habit: People buy certain products out of certain habits e.g. liquor, cigarettes, etc. Habits can also be created by salesmanship and advertising e.g. sales of pan masalas has increased due to heavy amounts of advertising.
11. Jealousy: Jealousy is a desire to secure an edge over others. A person may purchase a colour TV set just to show off to neighbours even if he does not really need the product or a woman may purchase a diamond set so that she can show off to her friends in parties even if she cannot afford to purchase it.
12. Patronage: It can be brand loyalty. Many people have faith in certain brands therefore they purchase the products of only that brand. Therefore an advertiser should focus on to maintain brand loyalty.
13. Hobbies: People cultivate hobbies to spend their leisure time e.g., collection of coins, stamps, photography, playing games, etc. An advertiser can increase his sales by understanding this buying motive of his prospects.
MEDIA PLAY A VITAL ROLE FOR PROMOTION OF TVS WEGO BRAND
Meaning of Advertising and Publicity:
The powerful weapon in the armory of business community today is advertising and publicity. It is a part and parcel of every business today and as no business can survive and grow without advertising and publicity. As a matter of fact today advertising and publicity is required in every walk of life. Salesmanship alone will bring limited success in selling unless it is supported by advertising and publicity. Both these activities are supplementary. “Advertising is impersonal salesmanship”. The approach of salesmanship is personal and direct. On the contrary, the approach of advertising is indirect and it appeals to masses. Advertising creates proper background for salesmanship. It brings customers to shops by creating a desire to purchase. “Advertising is called as salesmanship in print”. In the modern marketing process there is a tendency to use both advertising and publicity interchangeably. Both these terms are treated as terms with the same meaning and one is used for another. The American Marketing Association defines the term advertising as “any paid form of non personal presentation and promotion of goods, services or ideas by an identified sponsor.”
In simple words, publicity means spreading of information relating to a particular article. The main object of publicity is to influence the public opinion or to bring something to the notice of the public at large. The term “publicity” is wider than the term “advertising”. Advertisement is regarded as a part of publicity. It is also a means of information to the public and aims at publicizing the product. However, it is presented in the form of a specific appeal and is usually presented in an attractive and decorative fashion. It is not only a source of public information but also a tool of sales promotion. Advertisement is a specialized technique of popularizing the product or service. That is why it is described as salesmanship in print or in writing. However, both salesmanship and publicity perform the same function. They make non-personal presentation of goods and services. Thus, in practice these words are often used as synonymous. It must, however be noted that all advertising is publicity but all publicity is not advertising. Advertising is useful for giving publicity to products, firms and manufacturers. Modern advertising is based on human psychology.
PRODUCT LIFE CYCLE AND HEIRARCHY OF COMMUNICATION:
HIERARCHY OF COMMUNICATION MODEL
Scooterettes are sub 100 cc Variomatic scooters targeted specifically at the fairer sex. The brand was an instant hit in the market because of its low price and smart positioning. The brand effectively identified the need for the TG and the product was lapped up in the market. The segment for this brand is a. College going teenagers‟ b. working ladies c. Even Men The market can be divided broadly into two based on the customer preference. One set of customers prefer Functionality and another segment prefers style. Scooty has been able to maintain the balance between both.
Marketing is the backbone of the business. Today, marketing becomes the lifeblood of the business. It is an essential activity for the satisfaction of human wants and for raising social welfare. Production is base of marketing. Marketing links producers and consumers together for mutual benefits.
Production will be meaningless if goods produced are not supplied to consumers through appropriate marketing mechanism. Marketing activities are conducted with the medium of money. All exchanges are made through money. Such activities are conducted regularly throughout the world. Modern marketing is global in character. Every participant in marketing activities works for their satisfaction of needs. Marketing is the world‟s oldest profession. In short, marketing is the study of exchange processes.
Tag Lines of Media marketing showing strategies of TVS scooty
Large Alloy Wheels
Under Seat Storage
Contoured Seat space
External Fuel filling capacity
International Colour shade
Latest Add Campaign wining four award for Wego
Rate the medium of advertising that you come across the most?
Rate on a scale of 1-5 (1-lowest and 5- highest)
Medium Television Radio Newspaper Hoardings Internet College promotion Cinema 1 2 3 4 5
80 70 60 50 40 30 20 10 0 20-30 30-40 40-50
Do you know about two wheeler – Wego?
20-30 30-40 40-50 Total
All know about TVS - Wego Male Female 20 20 20 20 10 10 50 50
Total 40 40 20 100
80 70 60 50 40 30 20 10 0 20-30 30-40 40-50
INFLUENCE ON AGE OF BUYING DECISION DESCRIPTION:
Table shows the different age class of customers and its influence on buying decision of Wego:
120 100 80 60 40 20 0 20-30 30-40 40-50 Total Female Male
Why do you have to use TVS Wego?
- Wego 20-30 30-40 40-50 Total Male 14 7 6 50 Female 17 15 13 50 Total 40 40 20 100
- Wego Total - Wego Female
- Wego Male
0 20-30 30-40 40-50 Total
Which scooty do you use?
TABLE – 1 Features S. No. 1. 2. 3. 4. 5. BBAJAJ AUTO TTVS MOTOR HERO HONDA Not used any vehicle Some Other vehicle 23 8 9 34 26 100 23 8 9 34 26 100 No. of Respondents %
34% of the customers previously not used any vehicle, 26% used some other vehicle, 23% used Bajaj, 9% H-Honda and 8% used TVS. CHART - 1 No. of Respondents
40 35 30 25 20 15 10 5 8 9 23 34 26 Bajaj TVS H-Honda Not used any vehicle Some Other vehicle
Do 0 know about TVS Brand Do you know about Wego brand scooty by TVS Who do like the style of wego
Bajaj Tvs H-Honda Not used Any vehicle Some Other Vehicle
Vehicle used before
What made you to buy Wego?
TABLE S. No. 1. 2. 3. 4. 5. Model Price Quality Brand Name Other Benefits Features No. of Respondents 23 13 21 29 14 100 % 23 13 21 29 14 100
29% of the customer‟s opted TVS wego vehicle basing on the brand name, 23% basing on the model, 21% basing on the quality, 14% basing on other benefits and 13% basing on the price. CHART – 2 No. of Respondents
35 30 25 20 15 10 5 0 Model Price Quality Brand Name Other Benefits 13 14
Are you satisfied about the explanation about the benefit / feat
29 23 21 Model Price Quality Brand Name Other Benefits
Reason for buying TVS Wego
Are you satisfied about the explanation about the benefit / features / warranty of the vehicle and the financial schemes and the delivery procedure at the time of purchase?
TABLE S. No. 1. 2. 3. 4. 5. 6. Features Delighted Very satisfied Satisfied Somewhat dissatisfied Very dissatisfied No response No. of Respondents 4 27 45 12 12 100 % 4 27 45 12 0 12 100
Inference: 45% of the customers are satisfied about the explanation about the benefits,
features, etc., at the time of purchase, 27% are very satisfied, 12% are some what dissatisfied, 4% are delighted and 12% had not responded to the above question. CHART
No. of Respondents
45 40 35 30 25 20 15 10 5 0 Delighted Very satisfied Satisfied Somewhat dissatisfied Very dissatisfied 4 0 12 27
Very satisfied Satisfied Somewhat dissatisfied Very dissatisfied No response
5 SOURCES OF INFORMATION DESCRIPTION:
Table shows the sources from which the customers get information about their purchase:
SOURCES NO. OF PERCENTAGE RESPONDENTS
Television Newspaper Personnel sources
22 3 6
44% 6% 12%
Product demos sales representatives Experienced users
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 20-30 30-40 40-50 Total Female Male
From the above chart it can be found that 44% were influenced by the TV advertisement. 24 % influenced by experienced users, 12% were influenced by Personal sources and 10% were influenced by sales representatives. News paper and product demos were influenced by 6% and 4% respectively
Why do you think that Wego is easy to drive?
20-30 30-40 40-50 Total
Male 20 17 8 50
Female 20 16 6 50
Total 40 40 20 100
Why you think that it has a body balance?
Male 20 17 8 50 Female 19 14 6 50 Total 40 40 20 100
20-30 30-40 40-50 Total
How do you rate the metallic body of Wego?
20-30 30-40 40-50 Total
Male 10 9 8 50
Female 13 11 10 50
Total 40 40 20 100
Is Wego a fuel efficient scooty?
20-30 30-40 40-50 Total
Male 18 15 19 50
Female 20 18 17 50
Total 40 40 20 100
How do you rate the price of Wego?
20-30 30-40 40-50 Total
Male 18 15 14 50
Female 17 16 14 50
Total 40 40 20 100
Dealer of TVS in Andheri for Test drive
The overall performance scooty body-balance, style and fuel efficient, colour easy to drive scooty and the price is satisfactory to many of the customers. Nothing in the world can be perfect. Some faults are seen in the services though not major ones but some of the problems may give side effect and make cause more trouble in the future. So the problems need to be identified and solved immediately. Some of the main things are as follows. Prompt delivery should be made. Charges are high and need to be decreased. The efficiency of workers is to be increased. Check list should be maintained so that any other extra jobs that the customers are unaware can be solved.
If the problems identified are solved effectively, then the customer satisfaction level increases on the organization.
Marketing Management (the Millennium edition & 8th Edition) PHILIP KOTLER Site www.saim.com www.search engine.com www.tvs.com Corporate today : Magazines Auto magazines
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