Description
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.[1] It blends elements from psychology, sociology, social anthropology and economics.
A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION FOR TVS MOTOR COMPANY LIMITED A PROJECT REPORT Submitted to the Department of management studies in the FACULTY OF ENGINEERING AND TECHONOLOGY In partial fulfillment of the requirements For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION By HARISH.B REG.NO.35104117 Under the guidance of Dr.G.Ramanaiah, .M.COM, M.F.M., M.B.A Ph.D. PROFESSOR, SRM SCHOOL OF MANAGEMENT
SRM SCHOOL OF MANAGEMENT SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (Deemed University) CHENNAI (May 2006)
ACKNOWLEGEMENT • I would like to express my sincere thanks to our beloved principal for giving me an opportunity to carryout this project
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I am very grateful to the Dean of S.R.M SCHOOL OF MANAGEMENT STUDIES, Mrs.JAYASHREE SURESH who encouraged me during the course of the project
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I extend my gratitude to my resourceful guide Dr.G.RAMANAIAH faculty of Department of management studies, for his moral support, encouragement, valuable suggestions and last but not least his excellence guidance that he had offered sight thought the project.
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It gives me immense pleasure to express my heartfelt gratitude to Mr.SETHU RAMAN, TVS MOTOR COMPANY LTD (CHENNAI) for giving me permission and an opportunity to work and also giving me all the necessary aids required for the successful completion of the project.
(Harish)
TVS SCOOTY
TVS STAR CITY
TVS SCOOTY PEP
TVS STAR
TVS VICTOR GX
TVS VICTOR EDGE
TVS FIERO FX
TVS FIERO F2
TVS VICTOR GLX
TVS XL SUPER
TVS CENTRA
TVS APACHE
CHAPTER
CONTENTS
PAGE.NO
I
Introduction Statement of problem Objectives of study Hypothesis Sample Scheme Period of study Methodology (A) Data collection
2 3 6 7 8 9 9
(B) Questionnaires design Limitations Scope of the study Chapter Arrangements Methods and Tools Of Analysis II THEROTICAL SETTINGS Review of Literature Company Profile Product Profile III IV DATA ANALYSIS AND CONCLUSION FINDINGS AND SUGGESTION CONCLUSION ANEXURE BIBLIOGRAPHY 15 21 24 27 68 72 73 82 10 10 11 11
LIST OF TABLES TABLE NO 1 2 3 4 5 6 7 8 PAGE NO 27 29 31 33 35 37 39 41
DESCRIPTION Occupation of Consumers Gross Family Income Of Consumers Monthly Spending On Motorcycle Two-Wheelers previously preferred by the consumer's Reasons for shifting from the previous two wheelers Current Preference of consumer's Criteria for decision-making Consumers rating of their motorcycle advertisement
9 10 11 12 13 14 15 16 17 18 19 20 21 22
Engine power of motorcycle Feature disliked by the Consumers in their Motorcycles Servicing Facilities offered by the companies -consumer's opinion Servicing intervals Kilometers Traveled per month(in average) mileage offered Consumers will to respond to exchange melas Consumers Expectation about the bike Consumers Expectation about the service of the bike Decision making Criteria of the consumers Income Level and attracting features Income level and number of Km .Traveled per month Cross Tabulation (Age group vs. Bikes) Cross Tabulation ( Income level vs. Number of Km.Travelled per month)
43 45 47 49 51 53 55 57 59 61 62 63 64 65
TITLE OF THE CHARTS TABLE NO 1 2 3 4 5 6 7 8 PAGE NO 28 30 32 34 36 38 40 42
DESCRIPTION Occupation of Consumers Gross Family Income Of Consumers Monthly Spending On Motorcycle Two-Wheelers previously preferred by the consumer's Reasons for shifting from the previous two wheelers Current Preference of consumer's Criteria for decision-making Consumers rating of their motorcycle advertisement
9 10 11 12 13 14 15 16 17
Engine power of motorcycle Feature disliked by the Consumers in their Motorcycles Servicing Facilities offered by the companies -consumer's opinion Servicing intervals Kilometers Traveled per month(in average) mileage offered Consumers will to respond to exchange melas Consumers Expectation about the bike Consumers Expectation about the service of the bike
44 46 48 50 52 54 56 58 60
INTRODUCTION “We may talk as long as we please about manufacturers wholesalers and retailers but in last analysis consumer is the king”-Parlin
In today’s context marketing has become the toughest task to carryout. In recent days marketing theory has turned to the development of models of buyers behavior and the structure of the markets .Companies both in domestic and international markets fought a very stiff competition .When it comes to the marketing of consumers products the competition becomes tougher and the companies are trying out all possible strategies to capture markets. Today’s markets are absolutely ruled by the consumer and consumer satisfaction has become the prime task of marketers. Consumers determine the brands that should survive in the markets. Companies that win the confidence of consumer wins the markets and the companies that lose the confidence of consumers lose the markets. Hence constant efforts are made by the companies to know the tastes and preference of the consumers who are the rulers in the marketers.
This task is successfully performed by the research and development department of companies by applying various techniques of studying the consumer behavior like markets surveys etc. This study of researcher is an effort towards this cause i.e to study what motivates a consumer to prefer a particulars brand among the available alternative brands in the segments of motorcycles.
THE HISTORY OF MOTOR CYCLES: The invention of motor cycles dates back to the latter half of the eighteenth century. One of the first motorcycles was the stream driven velocipede invented in 1866 by WW.AUSTIN of WITHROP MASS.GOTTLIER DAMLIER of germane invented the real motor cycle. He attached a four-cycle piston to a bicycle frame in the year 1885.This invention of motor cycle was very useful scientific invention and motorcycles have become the main source of personal transportation mode for all age groups particularly youth these days.
STATEMENT OF PROBLEM: Motor cycle industry is one of the few industries in growth phase today. A consumer who wants to be mobile today considers personal transportation as one of his basic needs. Motor cycles satisfy this need immensely. This fact could be clearly from the data recorded as the share of motor cycles in the two wheeler industry has grown from 26 % in 1988-89 to 48% in 1998-99.Motor cycles have also become very common among our large middle class population. To study the reasons for this success story recorded by motorcycles in a span of a short period the study of consumer preference for motor cycles will be of great use .The study gains importance since it could throw light on the reasons for the growth of motor cycle’s industry.
Definition of sales promotion An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods”. More than any other element of the promotional mix, sales promotion is about “action”. It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to. Sales promotion is commonly referred to as “Below the Line” promotion. Sales promotion can be directed at: • The ultimate consumer (a “pull strategy” encouraging purchase) • The distribution channel (a “push strategy” encouraging the channels to stock the product). This is usually known as “selling into the trade”
Methods of sales promotion There are many consumer sales promotional techniques available they are • • • • • • • Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Frequent user / loyalty incentives free travel, such as free flights
Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Definition of CONSUMER BEHAVIOUR. Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Consumer Behaviour is defined as "the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behaviour is the psychology behind Marketing and the behaviour of consumers in the Marketing environment.
According to the American Marketing Association, Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Marketing environment. Two major psychological disciplines come into play when observing and trying to explain Consumer Behavior. The first is Cognitive Psychology. Cognitive Psychology is the study of all knowledge related (mental) behaviors. The Attention, Perception, Memory/Comprehension, and Decision Making links on this
website are the various aspects of cognitive psychology that play an important role in Consumer Behavior. The second psychological discipline that has theories to explain certain phenomenon of Consumer Behavior is Social Psychology. Social Psychology is "the study ofthe manner in which the personality, attitudes, motivations, and behaviors of the individual influence and are influences by social groups" this is also an area of interest.
OBJECTIVE
GENERAL OBJECTIVE: To study the behavioral pattern of consumers, with regard to motor cycles in Chennai Corporation.
SPECIFIC OBJECTIVES:
1
To know the factors motivating a consumer to prefer a particular motorcycles among other available alternatives. To study the role of advertisements, in persuading a consumer to buy a motor cycle. To know the market leader and market share of major competitors in the motor cycle market. To know the decision-making criterion used by the consumers in deciding to purchase a motor cycle. To know the purpose for which the consumers used the motor cycle most often.
2
3
4
5
SAMPLE SCHEME: Since the study strictly confines to the household consumers of Chennai city,non probability sampling method has been used from which convenience sampling technique is adopted. PERIOD OF STUDY The research work “A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION AT CHENNAI. Was carried on from Febrauary2006 to April 2006 in Chennai only.
METHODOLOGY The research design is the basic plan that guides the data collection and analysis phases of the research project. It is the framework that specifies the type of information to be collected, the sources of data and the data collection procedure .The objective of the research project logically determines the characteristics determined in the research design.
RESEARCH DESIGN: Descriptive Research design is followed in this project. This is typically concerned with determining the frequency with which something occurs or how two variables vary together .Besides these, it helps to describe the characteristics of certain groups, to estimate the proportion of people in a specified population, to make specific predictions and to determine whether certain variables are associated.
DATA COLLECTION METHOD: Since the secondary data obtained was not sufficient to proceed with the work, primary data collection was necessary .The primary data collection was done through the personal contact method, as the study emphasized to find out the attitude of the consumers.
TARGET GROUP The study is confined to household consumer of Chennai City only.
QUESTIONNARIE DESIGN: Structured Undisguised questionnaire was used in the study for the purpose of data collection .Both close-end and open-end questions are used in this questionnaire because the statement of alternatives in the close –end questions allows the respondent in recalling and formulating the answer and in the open –end questions the respondents has got the freedom to express his views in his own words pertaining to any aspect of the issue raised.
Research Area. The Survey was carried out in Chennai localities like. ¾ Adyar ¾ Tambaram ¾ Chengalpatu ¾ Anna salai ¾ Annanagar
LIMITATIONS: 1 The results could not be applied widely without making appropriate changes for cultural and regional expectations since the study was conducted in limited area.
2
The period within which the study was completed is also very small .The accuracy of the results is limited because of very small sample size. The money and other resources at the disposal of the researcher were limited and a detailed study was not possible.
3
SCOPE OF THE STUDY 1 The study could be used in designing the motorcycles to the expectations of consumers.
2
The study could throw a light on the success of present day advertisements for motorcycles.
3
The study could help to know how much money the consumers could spend for their motorcycles.
CHAPTER ARRANGEMENTS
The chapter arrangements in this research report are being divided in to four sections of the report consists of introduction about the research work ,the problem statement for carrying on the research work, the sample scheme and methodology ,the scope and limitations in doing the research work .
The second section consists of the literature review, the profile of the company and the product profile .The third section is wholly dedicated to the data analysis and interpretation and conclusion .The final part of the research report consists of the findings and recommendations given by the researcher to the company.
OPERATIONAL DEFINITIONS: The operational definitions of the statistical tools used are given below. 9 Chi –Square test-Independence of attributes.
A chi-square test of statistical independence is employed when the researcher wants to know whether there are associations between two or more variables in a given study. Two variables are statistically independent if knowledge of one would offer no information as to the identity of the other. The concept of independence is really central not only to the Chi- Square statistic but to all association measures. 9 Two Way Analyses Of Variances The analysis of variance in such problems where the researcher wants to test for the significance of the differences between two sample means. In One –Way classification, data are classified according to one criterion. The null hypothesis takes the form Ho: µ1=u2 =u3 =u k, i.e., the arithmetic means of the population from the k samples are
randomly drawn, is equal to one another. ANOVA stand for Analysis for Variance, the generic name given to a set of techniques for studying cause-and-effect of one or more factors (independent variable) on a single dependent variable .The analysis of Variance technique is used when the independent variables are of nominal scale (categories) and the dependent variable is metric (continuous) .The application areas in marketing research for experiments using ANOVA as the analytical method are wide. Whenever a marketing mix variable (independent variable) such as price, a specific promotion of type of distribution, even specific elements like shelf space, or colour, of packaging and so on is changed, We would want to know its effect .Under proper conditions, as experiment can tell us the effects of specific variations in one or more elements of the marketing mix.
This particular design is used when there is only one categorical independent variable and one dependent (metric) variable. Each category of an independent variable is called a level. The independent variable may be different levels of prices, or different pack sizes, or different product colours, and effect (dependent variable) could be sales of the product. In this type of design, we random ally allocate the various sampling elements to the different levels of the independent variable and measure the resulting dependent variable .Then, we conduct an F-test under the ANOVA to test the null hypothesis that the mean values of the dependent variable are not significally different from each other, at different levels of the independent variable. If the computer output from the F-test shows a significance level (p-value) of less than .05 on the ANOVA table, the null hypothesis is rejected .If the P-value from the F-test is greater than or equal to 05, the null hypothesis is accepted .Thus, if the P-value from the F-test is less than 05 .It proves at the 95 percent confidence level that variation in the independent variable is able to cause significant variation in the dependent variable. That is one variable depends on the other, assuming other variables are not in the picture.
A randomized block design is used, if there is an additional variable (called the block) which has an impact on the relationship between the independent and dependent variables. This variable is accounted for in the design of a randomized block design by explicitly changing the levels of the block and testing if that has an impact on the relationship between the independent and dependent variables .An example of this is the day of the week having an impact on the relationship between type of display ina store (independent variable) and sales (dependent variable).Another example is the magazine in which an advertisement appears (block) affecting the impact (dependent variable) of different versions of the ad (independent variable).
If two or more independent variables are to be tested through an ANOVA ,we use a factorial design, because each independent variable in ANOVA is also known as a factor .The factorial design can accommodate several factors(independent variables) at several levels (categories)each. The major difference in analysis factorial design with two or
more factors is that interactions of two or three factors among themselves form a separate effect. These interaction effects need to be tested along with the main effects of individual factors. This is quite easy to do on computer, but care should be taken to assign sampling units or elements to each combination of the factors being tested for their effects. The interaction effects should first be looked at see if they are significant (p-value less than 05 on the ANOVA table).which would on the analysis may stop there. If not, we must also look at the results of the individual factor F-test (called the main effects) to check if the factors individually have an effect on the dependent variable.
LIKERT SCALE: In Likert’s method, the respondents is asked to rate each statement on the basis of strength of personal feelings towards it. While applying Likert scale for research project, the statements are selected from a larger list that has been evaluated by a panel of judges. The statements finally chosen are those for which there is a greatest among the judges in terms of scores assigned.
THEORITICAL SETTINGS
Motor cycle Industry in India –An Overview
Important players in Indian Motor Cycle Markets:
Hero Honda: The company is the collaboration between the world’s largest motor cycle manufacturer and the largest manufacturers of bicycles. Hero Honda is today the largest selling Indian motor cycle and the most Fuel efficient in the category .Excellent marketing also helped Hero Honda establish as an Leading player in the motor cycle market .It operates the mobile work shop’s in deep interiors of the country .It has an efficient dealer network across the country to facilitate the purchase .Hero Honda motors have recently turned its attention overseas and the exports have been steadily on the rise ,The company also discharge its social obligations by operating a mobile dispensary van I service of those living within a 10 km radius of its plan and others similar facilities. YAMAHA
Yamaha is originally a Japan based multinational company incorporated in 1887 .It was producing reed organs initially and now it has become the world’s largest manufacturer of musical instruments, leading producer of audio visual products and other products. Yamaha now owns 44 subsidiaries and representative offices in overseas market. It has started its subsidiary unit in America, in 1960 and since the have expanded its market share all over the world .The Yamaha motor corporation Ltd ,begun in 1955 is the major part of the Yamaha group .But is a separately managed business entity from Yamaha corporation. The Yamaha motor corporation is the second largest manufacturer of motor cycles in the U.S called Yamaha motor Corporation U.S.A that is handling not only motor cycle, but also snowmobiles, golf court, outboard engines and water vehicles under the brand name of Yamaha.
TVS The Tvs was initiated by thriu.T.V sundaram Iyengar, by introducing a first ever rural bus service operate between madurai and devakottai in the state of Tamil nadu .Tvs started its first production of two wheelers .This move was the result of the vision of the late Mr.T.S.Srinivasan, the founder of Sundaram Clayton-a TVS Group Company in 1982 Indian Motor cycle Pvt, Ltd, was incorporated to manufacture motor cycle in collaboration with Suzuki Japan. During the year 1992-1994, company have launched a series of new vehicles including scooty,samurai,shoghun, max100,victor,star city, apache.
BAJAJ The bajaj group was founded by Mr.Jamnalal Bajaj.The Company Gained fast momentum when the elder son Jamaal Bajaj took over the diversified the production in to various manufacturing activities and elevated the group to the status it is enjoying now ,From 1968,Rahul Bajaj is the CEO of bajaj group .Bajaj is currently the India’s largest two and three wheeler manufacturer is one of the biggest in the world by now Bajaj had been become as one of the competitor in the two wheelers ,in Indian market.
CURRENT TRENDS: India is highly populous country with the huge middle class population .Two Wheelers are becoming a most common mode of transport for middle classes. India is the world’s largest two wheelers market with its 3.1 million motorized bi wheelers sold .Current SALES REPORTS JANUARY
TVS MOTOR COMPANY REPORTS TURNOVER OF Rs. 883.38 CRORES , RECORDS 8.4% GROWTH.PBT Rs. 45.03 crores at 7% growth & PAT Rs. 31.06 crores at 10% growth TVS Motor Company recorded a turnover of Rs. 883.38 crores in the third quarter ended December 2005 compared to Rs. 815.23 crores achieved in the corresponding period last year, registering a growth of 8.4%. The total two wheelers sold in Quarter Three ended December 2005 was at 358,559 units compared to 322,412 units in the same period last year, recording a growth of 11.2%. The concerted efforts have helped the company to improve its market share in motorcycles to 13.3% at the end of the third quarter compared to 12.6% in the first quarter of this fiscal year. In December 2005, the company achieved a new milestone with the launch TVS Apache. This stylish and performance driven motorcycle has already won good reviews from several two-wheeler experts. Apache won three “best bike of the year” awards by CNBC TV18 AUTOCAR India, OVERDRIVE and Business Standard Motoring. On design front too the Apache won two top awards namely “best design of the year” by BBC Top Gear and “best indigenous design of the year” by OVERDRIVE. TVS Apache was showcased at the Auto Expo 2006 in New Delhi and the response has been very encouraging. TVS Apache will be available in key markets by the end of February 2006 and with this launch the company will gain significant volumes and improve its presence in the premium segment of motorcycles. TVS StaR City continued to receive good response across all markets and has enabled the company to make significant inroads in the economy segment of the motorcycle market and TVS StaR has crossed the 50,000 units mark per month.Scooty Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant player in the ungeared scooter category. The total two wheelers sold in nine months ended December 2005 was at 991,514 units compared to 870,845 units in the same period last year, recording a growth of 13.9%. FEBRAUARY TVS Motors records 25% growth in motorcycles in January,Overall 2-wheeler growth 20%Beginning the New Year on a spirited note, TVS Motor Company has recorded a growth of 25% in the number of motorcycles sold during January 2006 over the corresponding period in the previous year. The total motorcycle sales in January 2006 stood at 69,278 units compared to 55,639 units recorded during January 2005.The company’s total two wheeler sales in January 2006 clocked 112,909 units compared to 94,467 units in January 2005 recording a growth of 20%. The performance in January 2006 represents the shape of things to come in the coming months. While the performance of new brands launched last year, in particular, StaR City continue to beat expectations, TVS Apache, the new 150 CC motorcycle in the premium segment promises to be a winner as it has already won several coveted awards for its overall performance and style. TVS Apache performed a hat trick last month by winning the “best bike of the year”
award from CNBC TV18 AUTOCAR India, OVERDRIVE and Business Standard Motoring. TVS Apache also won two top design awards namely “best design of the year” by BBC Top Gear and “best indigenous design of the year” by OVERDRIVE. TVS Apache was showcased at the Auto Expo 2006 in New Delhi, and elicited encouraging response from the visiting public. The new motorcycle will be available in key markets by the end of February 2006 and with this launch the company plans to gain significant volumes and improve its presence in the premium segment of motorcycles. TVS StaR City is amongst the few bikes that have crossed the sale of 50,000 units per month. StaR City has enabled the company to make significant inroads in the economy segment of the motorcycle market. TVS Scooty recorded 17,957 units in January 2006 compared to 14,724 units in the same period last year recording a growth of 22%. Scooty Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant player in the ungeared scooter category. In the export front, TVS Motor Company continued its robust performance having exported 6,374 units in January 2006. Exports recorded a growth of 147% compared to the same period last year.
MARCH Aggregate sales touch 108,923 units
The upward sales trend in motorcycles continued for TVS Motor Company (TVS M) in February 2006 as it posted a growth of 16%. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18% in motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company. The strong growth in motorcycles has pushed the sales of total two wheelers units in February 2006 to 108,923 units compared to 96,020 units recorded last year, a growth of 13%. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category. TVS Apache, the new 150 cc sensation and the winner of three ‘bike of the year’ awards by leading Auto Magazines received overwhelming response in Chennai where the commercial launch was commenced in late February. TVS Apache will be available in other key markets in phased manner and the company hopes to gain significant volumes and improve its presence in the premium segment of motorcycle market. In scooters, different variants of TVS Scooty clocked 16,052 units of sales in February
2006 compared to 15,900 units. On the export front, TVS continued with its growth trend with export of 6,007 vehicles in February 2006, a growth of 73% compared to the corresponding period in the previous year. TVS Motor Company Limited, the flagship company of the USD 2.7 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 740 million. The company is the only two-wheeler manufacturer in the world to be honoured with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.
TVS Motor Company continues to make rapid strides with a record of 16 per cent last month during this fiscal. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18 per cent in
motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company.The strong growth in motorcycles has pushed the sales of total two wheelers units in February 2006 to 108,923 units compared to 96,020 units recorded last year, a growth of 13 per cent. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category. TVS Apache, the new 150 cc sensation and the winner of three 'bike of the year' awards by leading Auto Magazines received overwhelming response in Chennai where the commercial launch was commenced in late February. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18 per cent in motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company. Motor Company exported 18,205 units of two wheelers in the third quarter of this fiscal year as against 12,253 units sold during the same period last year registering a growth of 49%. The exports in the nine months ended December 05 stood at 61,320 units compared to 36,666 units recording a growth of 67%.
ABOUT TVS MOTOR COMPANY
TVS Motor Company Limited, part of the TVS Group, is one of India's leading twowheeler manufacturers. With a turnover of over Rs 2800 crore ($574.94 million), the company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. TVS Motor Company Limited is one of the largest two-wheeler manufacturers and also among the fastest growing companies in the country. It is the largest manufacturer of sub 100cc (50cc, 60cc & 70cc category) 2-wheelers in the world. It has the unique distinction of having sold nearly 4 million mopeds the highest ever in India. It exports its range of products to 17 countries worldwide. The company has 4,000 highly motivated employees working in two manufacturing plants in Hosur and Mysore. The company manufactures motorcycles, mopeds, scooterettes and scooters. Today, there are over thirty companies in the TVS Group, employing more than 40,000 people worldwide and with a turnover in excess of USD 2.2 billion. With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers, auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance and insurance. was established in 1911 by Shri. T V Sundaram Iyengar. As one of India’s largest industrial entities it epitomizes Trust, Value and Service. TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable personal transportation. For the Indian Automobile sector, it was a breakthrough to be etched in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be honored with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.
Milestones Many firsts 9 India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980.
9 First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984. 9 Launched India's first indigenous Scooterette (sub-100cc variomatic scooters), TVS Scooty in June 1994. 9 Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in Dec 1996. 9 Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997. 9 Launched TVS Fiero, India’s first 150 cc, 4 stroke motorcycles in April 2000. 9 Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; India’s first fully indigenously designed and manufactured motorcycle. 9 Launched TVS Centra in January 2004, a world-class 4-stroke 100 cc motorcycle with the revolutionary VT-i Engines for best-in-class mileage. 9 Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough terrain. NETWORK TVS Motor Company has one of the most extensive networks with over 500 dealers and 2500 Customer touch points. We are the first in the two-wheeler industry to measure customer satisfaction, audited by external consultants of international repute. We have taken care to standardize facilities across all customer touch points. Up gradation of facilities and continuous improvement in all processes is given importance. The company also takes an active part in imparting training and capability building in all areas including sales, service and business management.
All our dealers are connected through the extended network of SAP, ensuring operational efficiency.
Supply Chain Management Forming the inner rung of the extended TVS family, our suppliers are involved at every stage of product development.
We extend core values and best practices to all our suppliers. Through continuous training forums we impart TPM (Total Productivity Maintenance) and JIT (Just in Time) practices. Our suppliers are committed to quality through continuous improvement and up gradation of processes. This has helped them obtain prestigious international certifications like ISO 9000, QS 9000 & TS 16949. We also facilitate knowledge sharing by reputed international consultants in order to build & enhance management expertise within our supplier base.
PRODUCT PROFILE: The TVS products are very use friendly. There are various kinds of vehicles are there in TVS brand. So the customers can able to purchase the vehicle according to their wish. TVS 50 This has engine capacity of 50cc it’s very comfortable for lower class and middle class people .We can able to ride this vehicle on any kinds of road .This can be serviced by ordinary mechanics to professionals and even owners. TVS SCOOTY This has as an engine capacity of 80cc .It’s very comfortable for ladies. Because of its low maintenance, good mileage and favor price. In scooters, different variants of TVS Scooty clocked 16,052 units of sales in February 2006 compared to 15,900 units.
TVS VICTOR This is a four–stroke bike with the engine capacity of 110cc.highly mileage of 70 km\liter .The feature involved in the customer purchase was style,colour,performance etc. This bike having special technology of mode indicators (Economy, Power).This is a fastest moving bike among TVS motors.
TVS APACHE This is a four –stroke bike with the engine capacity of 150cc. The company claimed that Apache would give 60 km per liter on normal conditions. Apache is powered by 13.5 Brake Horse Power (BHP) engine. Apache will sports wide tyres in black alloy wheels of 17-inch in the front and 18-inch at the rear to facilitate greater road grip. Apache comes with an Inductive Digital Ignition (IDI) technology that gives a host of benefits to the rider including excellent engine response, consistent fuel economy and good 'cold start
ability'. The Business Standard Motoring Bike of the Year 2006 is the superb new TVS Apache.
TVS STAR CITY This is a four–stroke bike with the engine capacity of 100cc.highly mileage of 70 km\liter .The feature involved in the customer purchase was style,colour,performance etc..This is a fastest moving bike among TVS motors in both urban and rural areas. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category.
DATA ANALYSIS AND INTERPRETATION
Nature of the occupation Self employed Professional Government employee Private employee TOTAL Source: computed.
Number of Consumers 20 12 45 23 100
PERCENTAGE (%) 20 12 45 23 100.0
INFERENCE The above table shows occupation of sample consumers. Government employees constitute the majority with 45% share.20% of consumers are self employed, 23% of consumers are employed in private concerns, where as only.12% of consumers are professional
OCCUPATION OF THE RESPONDENTS
Self employed Professional Government employee 10% 6% Private employee TOTAL 49% 12% 23%
GROSS FAMILY INCOME OF THE CONSUMERS
Range of Income Up to Rs 5000 5000-10,000 10,000-15,000 15,000-Above TOTAL
Number of consumers 11 42 30 17 100
PERCENTAGE (%) 11 42 30 17 100.0
INFERENCE The table brings out the gross family income of the sample consumers earn 5000-10,000 per month .They constitute the majority of mobile owners11% of consumers same earning 5000 and below per month .30% of consumers earn above 10,000 per month.
INCOME LEVELS OF THE RESPONDENTS
250 NO.OF RESPONDENTS 200 150 100 50 0 Up to Rs 5000 5000-10,000 10,00015,000 SALARY P.M 15,000Above TOTAL PERCENTAGE (%) Number of consumers
MONTHLY EXPENSES ON MOTOR CYCLE
RANGE OF EXPENDITURE UP to Rs 250 250-500 500-1000 1000 and above TOTAL
NO.OF CONSUMERS 51 34 10 5 100
PERCENTAGE (%) 51 34 10 05 100
INFERENCE From the above table shows 34% of peoples spend Rs 250-500p.m ,51% spend up to Rs 250 pm towards their motor cycle.10% of consumers have a monthly expenditure of Rs 500-1000 p.m for motor cycles .Only 5 consumers out of 100 consumers spend 1000 and above for their motorcycles.
MONTHLY EXPENSES ON MOTOR CYCLE
26%
UP to Rs 250 250-500 500-1000
49% 17% 3% 5%
1000 and above TOTAL
TWO WHEELERS PREVIOULY PREFERED BY THE CONSUMERS
Brand name Mopeds Scooters Cycle Motor Cycle Nothing Total Source: Computed
No. Of Consumers 32 28 20 16 4 100
Percentage 0.32 0.28 0.20 0.16 0.4 100
INFERENCE From the above table shows that majority of the sample consumers have used mopeds before purchasing their brand.28% of consumers have preferred scooters, 14% consumers have directly purchased the motorcycles.
TWO WHEELERS PREVIOULY PREFERED BY THE CONSUMERS
4% 16% 32% Mopeds Scooters Cycle 20% Motor Cycle Nothing 28%
REASONS FOR SHIFTING FROM THE PREVIOUS TWO WHEELERS.
Reasons Fuel economy Better engine power More comfortable and sophisticated Other reasons Total Source: Computed INFERENCE
No. Of Consumers 52 21 15 12 100
Percentage 0.52 0.21 0.15 0.12 100
From the above table we can infer that most of the consumer i.e. 52% has shifted from the previous two wheelers for the fuel economy. Comfort ability and sophistication was the reasons given by 15% of consumers 21% consumers either for better engine power and12% of consumers have other reasons for making the shift.
REASONS FOR SHIFTING FROM THE PREVIOUS TWO WHEELERS.
12% 15% 52% 21%
Fuel economy Better engine power More comfortable and sophisticated Other reasons
CURRENT PREFERENCE OF THE CONSUMERS
Brand Name TVS HERO HONDA BAJAJ YAMAHA OTHERS TOTAL
No. Of Consumers 29 32 28 7 4 100
Percentage 0.29 0.32 0.28 0.07 0.04 100
INFERENCE
From the above table we can infer that the present preference of consumers 32% of consumers prefer Hero Honda ,29% of consumers prefer TVS ,Yamaha and other bikes 11% of consumers are using the Bajaj company motorcycles.
CURRENT PREFERENCE OF THE CONSUMERS
7%
4% 29% TVS HERO HONDA
28%
BAJAJ YAMAHA OTHERS 32%
CRETERIA FOR DECISION MAKING
Criteria ADVERTISEMENT FAMILY MEMBERS PEER GROUP IDEAS OWN DECISIONS TOTAL
No. Of Consumers 15 30 35 20 100
Percentage 0.15 0.30 0.35 0.20 100
INFERENCE From the above table we can infer that Peer group ideas have been the deciding factor in making decisions for motorcycles. Ten consumers have been made their purchase because of family member’s stress.Advertisemnt were the criterion for decision making incase of only 15 consumers .20consumers have made their purchase based on their own analysis
CRETERIA FOR DECISION MAKING
20%
15%
ADVERTISEMENT FAMILY MEMBERS PEER GROUP IDEAS 30% 35% OWN DECISIONS
CONSUMERS RATING FOR THEIR MOTORCYCLE ADVERTISEMENT
RATINGS IMPRESSIVE GOOD NOT INTERSTING TOTAL
NO.OF CONSUMERS 16 72 12 100
PERCENTAGE 0.16 0.72 0.12 100
INFERENCE From the above table we can infer that 72% of consumers feel good of their advertisements .16% of consumers impressed by the advertisements.12% of the consumers are not satisfied with the advertisements for their motorcycle.
CONSUMERS RATINGS FOR THEIR MOTORCYCLE ADVERTISEMENT
12%
16%
IMPRESSIVE GOOD NOT INTERSTING
72%
ENGINE POWER OF THE MOTORCYCLE
ENGINE POWER BELOW 100CC 100CC-250CC 250CC-350CC TOTAL
NO.OF CONSUMERS 35 55 10 100
PERCENTAGE 0.35 0.55 0.10 100
INFERENCE From the above table we can infer that100cc and below 100cc is the engine power preferred by 35% of the consumers. 55% of the consumers have bikes with 250cc and 10% of the consumers have bikes with 350cc.
ENGINE POWER OF THE MOTORCYCLE
10% 35% BELOW 100CC 100CC-250CC 250CC-350CC 55%
FEATURES DISLIKED BY THE CONSUMERS IN THEIR MOTORCYCLES
FEARTURE FUEL ECONOMY COSTLIER TECHNOLOGY SERVICING OTHER REASONS TOTAL
NO.OF CONSUMERS 56 24 15 3 2 100
PERCENTAGE 0.56 0.24 0.15 0.03 0.02 100
INFERENCE From the above table we can infer that 56% of the consumers said that the fuel economy is the factor they dislike their bikes .15% of the consumers said that technology is the disliking factor.24% of the consumers said that they were disappointed with the cost of their bike.3%and 2% of the consumers are dissatisfied with the servicing and other reasons.
FEATURES DISLIKED BY THE CONSUMERS IN THEIR MOTORCYCLES
6% 14% FUEL ECONOMY 44% 19% COSTLIER TECHNOLOGY SERVICING
OTHER REASONS
17%
SERVICING FACILITIES OFFERED BY THE COMPANIES –CONSUMER OPINION
RATING VERY GOOD GOOD BAD TOTAL INFERENCE
NO.OF CONSUMERS 38 54 8 100
PERCENTAGE 0.38 0.54 0.08 100
From the above table we can infer that most of the consumers 54% were satisfied with the servicing facilities offered by the companies .38% of the consumers were highly satisfied of the service facility offered.8% of the consumers felt badly of the service facilities offered.
SERVICING FACILITIES OFFERED BY THE COMPANIES –CONSUMER OPINION
17%
19% VERY GOOD GOOD BAD 64%
SERVICING INTERVALS TIME INTERVAL EVERY 3 MONTHS EVERY 6 MONTHS EVERY12 MONTHS TOTAL NO.OF CONSUMERS 58 30 12 100 PERCENTAGE 0.58 0.30 0.12 100
INFERENCE From the above table we can infer that 58. % of the consumers goes for servicing in every 3 months and 30% of the consumer services their bike in every 6 months. Only 12% of the consumers are used to service their bikes once in a year.
SERVICING INTERVALS
11%
EVERY 3 MONTHS 31% 58% EVERY 6 MONTHS EVERY12 MONTHS
KILOMETERES TRAVELLED PER MONTH (IN AVERAGE)
NO.OF KM'S/MONTH BELOW 300 Kms 300-500Kms 500-1000Kms ABOVE 1000Kms TOTAL
NO.OF CONSUMERS 27 45 13 15 100
PERCENTAGE 0.27 0.45 0.13 0.15 100
INFERENCE From the above table we can infer that 45% of the consumers travels 300500Kms/Month.13% of the consumers travels, either below 300Kms or between 5001000 Kms /Month .Only 15% of the consumers travel above 100kms per month.
KILOMETERES TRAVELLED PER MONTH (IN AVERAGE)
15% 32% BELOW 300 Kms 300-500Kms 500-1000Kms 53%
MILAGE OFFERED
NO.OF KM'S/Liter UP TO 35Kms/ltr 35-50 Kms\ltr 50-75 Kms\ltr ABOVE 75 Kms\ltr TOTAL
NO.OF CONSUMERS 36 47 12 5 100
PERCENTAGE 0.36 0.47 0.12 0.05 100
INFERENCE From the above table shows that 12% of the consumers get 50-75 Kms\Lr of mileage.47% of the bike offers 35-50 Kms\Lr of mileage .36% of the bikes gives only 35 Kms\Lr and below.5% of the consumers get a mileage of more than 75 Kms\Lr.
MILAGE OFFERED
50 45 40 35 30 25 20 15 10 5 0
UP TO 35Kms/ltr 47 36 12 UP TO 35Kms/ltr 35-50 Kms\ltr 50-75 Kms\ltr 35-50 Kms\ltr 50-75 Kms\ltr
CONSUMERS RESPONSE FOR EXCHANGE MELAS
OPTIONS YES NO TOTAL
NO.OF CONSUMERS 38 62 100
PERCENTAGE 0.38 0.62 100
INFERENCE From the above table shows that 38% of the consumers have expressed willingness to accept the exchange offers and 62% of the consumers have returned to accept the exchange melas .If anywhere offered by the consumers.
CONSUMERS RESPONSE FOR EXCHANGE MELAS
70 60 50 40 30 20 10 0 YES NO 38 62 YES NO
CONSUMER EXPECTATION ABOUT THE BIKE
FEATURES TECHNOLOGICAL FEATURE FUEL ECONOMY COST ENGINE POWER TOTAL
NO.OF CONSUMERS 30 52 10 8 100
PERCENTAGE 0.30 0.52 0.10 0.08 100
INFERENCE From the above table shows that 52% of consumers have suggested fuel economy and 30% is technological features to make their motorcycle a best one.10% of the consumers suggested cost of the bike and 8% of the consumers suggested engine power is the better feature.
CONSUMER EXPECTATION ABOUT THE BIKE
8% 10% 30% TECHNOLOGICAL FEATURE FUEL ECONOMY COST ENGINE POWER 52%
CONSUMERS EXPECTATION ABOUT THE SERVICE OF THE BIKE
YEARS 0-5 YEARS 5-10 YEARS 10-15 YEARS ABOVE 15 YEARS TOTAL
NO.OF CONSUMERS 30 54 12 4 36
PERCENTAGE 0.30 0.54 0.12 0.04 100
INFERENCE From the above table shows that 54% expect their motorcycle to serve them for 5-10 years.30% of the consumers wish to use their bikes for 0-5 years.1/4th of the consumers expect to use 10-15 years and 12% of the consumers want to use their motorcycle for more than 15 years.
CONSUMERS EXPECTATION ABOUT THE SERVICE OF THE BIKE
60 50 40 30 20 30 10 0 0-5 YEARS 5-10 YEARS 10-15 YEARS 12 4 ABOVE 15 YEARS 54 0-5 YEARS 5-10 YEARS 10-15 YEARS ABOVE 15 YEARS
DECISION MAKING CRETERIA OF THE CONSUMERS
AGE UP TO 25 25-35 35-45 45-55
ADVERTISEMENT 2 1 1 2
FAMILY MEMEBRS STRESS 0 4 3 3
PEER GROUP IDEAS 1 5 3 9
INDIVIDUAL DECISION 0 2 0 0
INFERENCE From the above table shows that the age group and the decision-making criteria. Consumers with the age of 25 years consider advertisement as the criteria for decisionmaking. Consumers in the age of 25-35 keep peer group ideas and family members stress on decision –making criterion. Consumers in the age group of 35-45 also have the same criteria while making decicions.Consumer of age group 45-55 were keeping peer group ideas as their decision making criterion most cases.
INCOME LEVEL AND THE ATTRACTING FEATURE INCOME LEVEL UP TO 5000 5,000-10,000 10,000-15,000 ABOVE 15,000 SERVICING FUEL FACLITY ECONOMY COMFORTABILITY OTHER 0 1 1 1 6 0 1 2 8 4 0 3 0 2 2 1
CHEAPER 0 1 3 0
INFERENCE From the above table shows that the income level and the attracting features are compared .Consumers having an income of below Rs5, 000 were attracted by both fuel and comfort ability. Income group of 5,000-10,000 was mostly attracted by comfort ability. Income group of 10,000-15,000 was attracted by cheaper prices. Consumers of earning group 15,000 and above were mostly attracted by fuel economy and comfort ability.
INCOME LEVEL AND NO.OF Kms.TRAVELLED PER MONTH
INCOME LEVEL UP TO 5000 5,000-10,000 10,000-15,000 ABOVE 15,000
BELOW 300 0 2 2 1
300-500 3 1 0 2
500-1000 6 3 3 2
ABOVE 1000 5 2 2 2
INFERENCE From the above table brings out the relationship between the income level and the Kms traveled by the consumers. Income group of below Rs 5,000 id traveled monthly above 500Kms every month .All the other income groups travel evenly.
RANK CORRELATION
BIKES
AGE GROUP 2535 1 2 2 0 0 3545 0 2 0 2 1 4555 0 1 4 0 0
Below 25 BAJAJ 1 HONDA 0 TVS 1 YAMAHA 3 OTHERS 0
d1 AB 0 -2 -1 3 0
d2 AC 1 -2 -1 3 0
d3 AD 1 -1 -3 3 0
d4 BC 1 0 2 -2 -1
d5 BD 1 1 -2 0 0
d6 CD 0 1 -4 2 1
d1
d2
d3
d4
d5
d6
0 4 1 9 0
1 4 1 9 0
1 1 9 9 0
1 0 4 4 1
1 1 4 0 0
0 1 16 16 1
Calculation:
(A, B) = 1-0.7 (A-C) = 1-0.75 (A, D) = 1-1 (B, C) = 1-0.5
=0.3 =0.25 =0 =0.5
(B, D) = 1-36/120 = 0.7 (C, D) = 1-132/120 = -0.1
INFERENCE The table shows that the rank correlation. The researcher to find out the age groups that have close ideas and preference in purchasing a motorcycle used the table .From the above table shows the calculation it’s observed that age group 25-35 and 35-45 have similar preference for motorcycles than all the other groups.
INCOME LEVEL vs. NUMBER OF KM .TRAVELLED PER MONTH Analysis Of Variance Below 300 < = 5000 5000-1000 10000-15000 > = 15000 Calculation: Hypothesis Ho: there is no significant difference between income level and number of K/m traveled per month. H1: There is significant difference between income level and number of K/m traveled per month 0 2 2 1 300-500 3 1 0 2 500-1000 6 3 3 2 >1000 3 2 2 2
Test statistics: F treatment = Variance of treatment ------------------------Variance of error F block = Variance of block ----------------------Variance of error Correction factor: T =36, N=16, then correction factor is given by C.F = T2/N. C.F = (36)2 ---- = 1296/16 = 81 16 Total sum of squares: TSS = xij2 –C.F
TSS = 9+36+25+4+1+9+4+4+1+4+4+4-81 =118-81 = 37 Degree of freedom = 16-1 = 15
Sum of squares of Treatment: SST= (average of the treatment) C.F. =49+16+12.25-81 =89.50-81 =8.5 Degree of freedom =4-1 =3
Sum of squares of block: SSB = (average of the block)-C.F =6.25 +9+49+30.25-81 =94.50-81 =13.5
Degree of freedom =4-1=3
Tabulation: Source SST SSB ERROR TSS SS 8.5 13.5 15 37 D.F 3 3 9 15 Variance 2.8333 4.5 1.6667 F-Test 1.6999 2.6999
Inference: As per the table the calculated value is 1.6999and 2.6999 and the table value for its respective degree of freedom is 3.86 and 3.86. F- Tabulated value for treatment (3, 9) =3.86 F-Tabulated value for block (3, 9) = 3.86 So calculated value is less than tabulated value, we accept the null hypothesis (H0) That is, there is no significant difference between the income level and number of Km.Travelled per month.
In this chapter the researcher has listed out the results of the analysis done in the previous chapter. These findings are the brief summary of the analysis done with the help of various statistical tools i.e table, piedia grammars, bar diagram and rank correlations. Based on these findings and observations the researcher has said out the suitable suggestions for the problem identified during these studies. ? ? ? ? Government employee constitute 45% of the sample size and 20% of the consumers are self employed Majority of the consumers earn Rs 5000-Rs 10000 P.M There were at least some amount of expenditure towards education, entertainment and health in most cases is up to Rs 500 P.M. Mopeds and scooters together have been the previous preferences of 60% consumers. Motor cycle to motor cycle shifts are very marginal.
? ?
Fuel economy and comfort ability was the inducing factor for 52 % of the consumers to make a shift. Motorcycle sales are picking up very fastly .This is revealed from the data recorded as 47.22% of the bikes were purchased within a period of five years compared to 36.11 % of bikes purchased within 5-10 years. However in the last three years there was a marginal decrease of 2.78 % in the bikes sale. For motorcycles, peer group ideas were the most effective decision making criterion. Family member’s stresses in the next effective criterion .Advertisement are found to be not an effective decision making criteria. No consumers has said that the advertisement were impressive. But most of the consumers feel good of their advertisements. Fuel economy and comfort ability was the main attracting features. Comfort ability has attracted 15 % of consumers and fuel economies have attracted 52 % of the consumers .The cost was not a major attracting feature for motorcycle.
?
? ?
? ? ? ? ?
Most of the consumers (61%) feel good about the preference of their motorcycles only (3%) of the consumers were dissatisfied of the performance of their bikes. Major feature disliked by the consumers (56%) was bad mileage. Technology and cost were the other major features disliked by the consumers. Majority feature disliked by the consumers (92%) were satisfied with their service facilities offered by the companies through dealers 3Months and below that were the ideal time interval for servicing their bikes in case of 58% of the consumers. 27% of the consumers travel around 300-500km every month 1/4th of the consumers travel below 300 kms and 500-1000 kms every month. Only 15% of the consumers go for extensive traveling i.e. more than 1000 kms p.m The cycles offering 50-75 kms/lr have highest market share (12%) closely followed by the motorcycle offering 35-50 km\lr (47%).The motorcycle which offer either below 35 km\lr or above 75 kms\lr has a very little market share (36% and 5%) respectively. Majority of the consumers doesn’t want to accept exchange melas. Only 38% of the consumers have the will to accept the exchange melas.
?
?
? ? ? ?
30% of the consumers consider technology and fuel economy as the feature that could make their motorcycle a best one in the market (52%) Of the 17 consumers who have an idea of making a shift 35.29% of the consumers preferred Yamaha .This shows that Yamaha has good future market. The second hand cars gave a threat to the motorcycles.3 consumers have opted for the second hand cars incase of making shift. Comfort ability is the main consideration for consumers of all income groups except the income group 10,000-15,000.Cost is the main consideration for them.
? ?
Consumers in the income group of Rs 5,000 and below travel extensively compared to other income groups. Engine power and comfort ability are the most common attracting feature present in all the motorcycles.
SUGGESTIONS 9 Since peer group’s ideas and the family members stress are the most inducing factors for consumers to decide on purchase of motorcycles. Hence companies should try to find out the opinion leaders in these groups by suitable sales promotion techniques. 9 The company should try to build up brand loyalty among the consumers up to 45 years of age persons. Companies have to design the best motorcycles for this purpose. 9 The performance attracts more consumers compared to fuel economy. Hence companies should design bikes. that could perform well and at same time fuel economy could not be gave up. 9 Company should concentrate more on age groups 25-35 and 35-45 since they have common preference compared to other groups. 9 Bajaj should boost up the sales of motorcycles. Since only 28% of the consumers prefer Bajaj motorcycle compare to that of Hero Honda 32% market, TVS and Yamaha also try to improve their market shares. 9 In the last 3 years there was a marginal decrease in the growth rate of
motorcycles. This should be considered and needed improvements to be made. 9 Peer groups ideas and family members stress are found to be more effective than advertisements in motivating a consumer to buy motorcycles. Hence the companies should concentrate more on other sales promotion techniques through their dealers. 9 In advertisements their brands the companies should advertise through TV’s and NEWS papers as these advertisements .The advertisements should also be impressive. 9 The company should produce motorcycles offering good fuel economy and comfort ability even at slightly higher cost, as cheaper bikes don’t attract so many consumers. 9 The consumers like red colored bike more. The companies may produce red colored bikes to attract more consumers.
CONCLUSION
Existence of a large middle class offers a great scope for the growth of motorcycle market. In the last 15 years this fact was visible seen in our Indian markets. The existing competition however makes it a tough task for the companies to be the market leader. In future bikes which are technologically supreme alone could survive in the markets like most of the other consumer products quality alone speaks in motorcycles industry also and companies producing quality products alone win the confidence of consumers.
APPENDIX -1 QUESTIONER FOR STUDYING THE PREFERENCE OF CUSTOMERS FOR TVS MOTOR CYCLE IN CHENNAI
1, Name & age of the Respondent
:
2, Education qualification of the Respondent: (a) illiterate (b) + 2 and below
(c) Graduate (U.G (or) P.G) (d) Professional 3, Occupation of the Respondent. (a)Self-Employed (b) Professional (c) Govt.Emloyee (d) Private employee 4, Family size of the Respondents. (a) 1-3 (b) 4-6 (c) 6 & above 5, No. Of earnings members in the Family (a)One (b) Two (c) Three & above 6, Gross Family income P.M of the Respondent. (a) Up to Rs 5,000 (b) 5,000 – 10,000 (c) 10,000-15000 (d) Above 15000
7, what is your monthly expenditure on the following heads? (Tick the appropriate box) EDUCATION Up to Rs 500 500-1,000 Above 1,000 ENTERTAINMENT Up to Rs 200 200-500 Above 500 HEALTH Up to Rs 500 500-1,000 Above 1,000
8, How much do you spend for your Motor cycle P.M ? (a)Up to Rs 100
(b) 100-300 (c) 300-500 (d) Above 500 9, What Motor Cycle do you own now? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others 10, How do you feel of the advertisement of your Motor Cycle? (a) Impressive (b) Fare (c) Not interesting 11, For how long you are using the Motor Cycle? (a) 1-3 years (b) 3-5 years (c) 5-10 years (d) Above 10 years
12, How will you rate the performance at your bike? (a) Very Good (b) Good (c) Not Bad (d) Poor 13, If you have owned previously a two-wheeler what was that? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others (specify) _________ 14, Give the reason for your shifting? (a) Fuel Economy (b) Better engine power (c) More Comfortable & Sophisticated
(d) Other reasons (specify) _______________________________ 15, In case of making a shift, which Motor Cycle will you buy? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others (specify) ________________________________ 16, How long do you expect your Motor Cycle to serve you? (a) 1-3 years (b) 3-5 years (c) 5-7 years (d) 7-10 years (e) Above 10 years
17, What feature attracted you most to this motor cycle? (TVS) (a) Its cheapness (b) Adequate servicing facilities (c) Fuel economy (d) Comfortable to use (e) Others (specify) __________________ 18, Which color is suitable for the Motor Cycle? (a) Red (b) Blue (c) Green (d) Black (e) Gray (f) Others 19, How do you feel the service facilities offered by companies through their dealers? (a) Very Good (b) Comparatively Good (c) bad
20, Specify the engine power of your Motor Cycle?
21, What is the Mileage offered by your Motor Cycle? (a) Up to 35 km/litre (b) 36 to 50 km/litre (c) 51-75 km\litre (d) Above 75 km\litre 22, How many Kms do you travel every month in an average?
23, At what time interval do you go for servicing ? 24, What features should be developed in TVS motor Cycle to make it as the best?
25. Will you go in for a new one if the company offers any “Exchange mela”?
26, For what purpose do you use your motor cycle often? (a) To commuting to the work place (b)To meet the household needs (c)For entertainment and fun (d) For office works 27, Please select the category of service work performed for this visit (a)Warranty (b) Non-warranty (c) Oil change\Factory scheduled Maintenance (d) Other 28, After your service visit, did someone from the dealership contact you by phone or by e- mail to see if you were satisfied with overall Service experience? (a) Yes (b) No (c) Not at all
29, overall, how would you rate the dealership staff that you bought the vehicle from? (a) Excellent (b) Very good (c) Good (d) Average (e) Bad
APPENDIX -2 QUESTIONER 2 QUESTIONER FOR SERVICE PROCESS
INTERVIEWED BY: OWNED : DEALER NAME:
DATE:
VEHICLE:
PLACE:
Q1, As I read aspect I would like you to express your opinion by rating the dealer I request you to give marks out of 100 for each aspect.
10 20 30 UNACCEPTABLE
40
50
60 AVERAGE
70
80
90 100 OUTSTANDING
SL.NO MARKS 1. 2. 3. 4. 5.
STATEMENT
Quality of work performed Overall performance of the service personnel Honesty and integrity of service personnel Ability to fix problem’s the first time Service personnel’s understanding of the problem
6. 7.
Length of time to have your two wheeler serviced Courtesy and friendliness of service personnel
Q 2 , I would now like you to answer a few questions relating to your experience with dealer at that time of taking the vehicles.
SL. NO
STATEMENT
YES
NO
SL STATEMENT
YES
NO
Was the service work fully Explained before servicing?
7
Did the person take you 2-wheeler for service listen to all problems patiently and do enough probing to understand the problems?
Was a Written estimate of the Service amount provided before Servicing?
8
Did the person take your 2-wheeler for road trail?
Were the charges for servicing Reasonable?
9
Did the service center charge you for free service carried out on your 2-wheeler(except oil change)
Did the dealer explain the work Done after servicing
10
Were you asked to deposit money for warranty replacement?
Was the vehicle returned clean And washed? In your opinion, does this TVS Dealership value your service Business?
11
When you arrive the service center for booking, did someone attend to You within a reasonable time?
Q3, I would like you to give marks for the overall satisfaction with the service capabilities of the RamKay agencies (TVS) dealer you’re visited most recently. 10 20 30 UNACCEPTABLE 40 50 60 AVERAGE 70 80 90 100 OUTSTANDING
BIBLIOGRAPHY
BOOK NAME Contemporary Marketing The Dictionary Of Marketing Marketing Management Marketing Management Fundamentals of marketing Marketing Concepts And Applications Marketing Management Marketing Management Modern Marketing
AUTHOR NAME Boone & Kurtz Rona Ostrow Philip Kotler Crurens Hills Wooruf William J.Stanton Charles D.Schewe Ramasamy Subbi Redid RSN Pillai & Bagavathi
doc_527130925.pdf
Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society.[1] It blends elements from psychology, sociology, social anthropology and economics.
A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION FOR TVS MOTOR COMPANY LIMITED A PROJECT REPORT Submitted to the Department of management studies in the FACULTY OF ENGINEERING AND TECHONOLOGY In partial fulfillment of the requirements For the award of the degree of
MASTER OF BUSINESS ADMINISTRATION By HARISH.B REG.NO.35104117 Under the guidance of Dr.G.Ramanaiah, .M.COM, M.F.M., M.B.A Ph.D. PROFESSOR, SRM SCHOOL OF MANAGEMENT
SRM SCHOOL OF MANAGEMENT SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (Deemed University) CHENNAI (May 2006)
ACKNOWLEGEMENT • I would like to express my sincere thanks to our beloved principal for giving me an opportunity to carryout this project
•
I am very grateful to the Dean of S.R.M SCHOOL OF MANAGEMENT STUDIES, Mrs.JAYASHREE SURESH who encouraged me during the course of the project
•
I extend my gratitude to my resourceful guide Dr.G.RAMANAIAH faculty of Department of management studies, for his moral support, encouragement, valuable suggestions and last but not least his excellence guidance that he had offered sight thought the project.
•
It gives me immense pleasure to express my heartfelt gratitude to Mr.SETHU RAMAN, TVS MOTOR COMPANY LTD (CHENNAI) for giving me permission and an opportunity to work and also giving me all the necessary aids required for the successful completion of the project.
(Harish)
TVS SCOOTY
TVS STAR CITY
TVS SCOOTY PEP
TVS STAR
TVS VICTOR GX
TVS VICTOR EDGE
TVS FIERO FX
TVS FIERO F2
TVS VICTOR GLX
TVS XL SUPER
TVS CENTRA
TVS APACHE
CHAPTER
CONTENTS
PAGE.NO
I
Introduction Statement of problem Objectives of study Hypothesis Sample Scheme Period of study Methodology (A) Data collection
2 3 6 7 8 9 9
(B) Questionnaires design Limitations Scope of the study Chapter Arrangements Methods and Tools Of Analysis II THEROTICAL SETTINGS Review of Literature Company Profile Product Profile III IV DATA ANALYSIS AND CONCLUSION FINDINGS AND SUGGESTION CONCLUSION ANEXURE BIBLIOGRAPHY 15 21 24 27 68 72 73 82 10 10 11 11
LIST OF TABLES TABLE NO 1 2 3 4 5 6 7 8 PAGE NO 27 29 31 33 35 37 39 41
DESCRIPTION Occupation of Consumers Gross Family Income Of Consumers Monthly Spending On Motorcycle Two-Wheelers previously preferred by the consumer's Reasons for shifting from the previous two wheelers Current Preference of consumer's Criteria for decision-making Consumers rating of their motorcycle advertisement
9 10 11 12 13 14 15 16 17 18 19 20 21 22
Engine power of motorcycle Feature disliked by the Consumers in their Motorcycles Servicing Facilities offered by the companies -consumer's opinion Servicing intervals Kilometers Traveled per month(in average) mileage offered Consumers will to respond to exchange melas Consumers Expectation about the bike Consumers Expectation about the service of the bike Decision making Criteria of the consumers Income Level and attracting features Income level and number of Km .Traveled per month Cross Tabulation (Age group vs. Bikes) Cross Tabulation ( Income level vs. Number of Km.Travelled per month)
43 45 47 49 51 53 55 57 59 61 62 63 64 65
TITLE OF THE CHARTS TABLE NO 1 2 3 4 5 6 7 8 PAGE NO 28 30 32 34 36 38 40 42
DESCRIPTION Occupation of Consumers Gross Family Income Of Consumers Monthly Spending On Motorcycle Two-Wheelers previously preferred by the consumer's Reasons for shifting from the previous two wheelers Current Preference of consumer's Criteria for decision-making Consumers rating of their motorcycle advertisement
9 10 11 12 13 14 15 16 17
Engine power of motorcycle Feature disliked by the Consumers in their Motorcycles Servicing Facilities offered by the companies -consumer's opinion Servicing intervals Kilometers Traveled per month(in average) mileage offered Consumers will to respond to exchange melas Consumers Expectation about the bike Consumers Expectation about the service of the bike
44 46 48 50 52 54 56 58 60
INTRODUCTION “We may talk as long as we please about manufacturers wholesalers and retailers but in last analysis consumer is the king”-Parlin
In today’s context marketing has become the toughest task to carryout. In recent days marketing theory has turned to the development of models of buyers behavior and the structure of the markets .Companies both in domestic and international markets fought a very stiff competition .When it comes to the marketing of consumers products the competition becomes tougher and the companies are trying out all possible strategies to capture markets. Today’s markets are absolutely ruled by the consumer and consumer satisfaction has become the prime task of marketers. Consumers determine the brands that should survive in the markets. Companies that win the confidence of consumer wins the markets and the companies that lose the confidence of consumers lose the markets. Hence constant efforts are made by the companies to know the tastes and preference of the consumers who are the rulers in the marketers.
This task is successfully performed by the research and development department of companies by applying various techniques of studying the consumer behavior like markets surveys etc. This study of researcher is an effort towards this cause i.e to study what motivates a consumer to prefer a particulars brand among the available alternative brands in the segments of motorcycles.
THE HISTORY OF MOTOR CYCLES: The invention of motor cycles dates back to the latter half of the eighteenth century. One of the first motorcycles was the stream driven velocipede invented in 1866 by WW.AUSTIN of WITHROP MASS.GOTTLIER DAMLIER of germane invented the real motor cycle. He attached a four-cycle piston to a bicycle frame in the year 1885.This invention of motor cycle was very useful scientific invention and motorcycles have become the main source of personal transportation mode for all age groups particularly youth these days.
STATEMENT OF PROBLEM: Motor cycle industry is one of the few industries in growth phase today. A consumer who wants to be mobile today considers personal transportation as one of his basic needs. Motor cycles satisfy this need immensely. This fact could be clearly from the data recorded as the share of motor cycles in the two wheeler industry has grown from 26 % in 1988-89 to 48% in 1998-99.Motor cycles have also become very common among our large middle class population. To study the reasons for this success story recorded by motorcycles in a span of a short period the study of consumer preference for motor cycles will be of great use .The study gains importance since it could throw light on the reasons for the growth of motor cycle’s industry.
Definition of sales promotion An activity designed to boost the sales of a product or service. It may include an advertising campaign, increased PR activity, a free-sample campaign, offering free gifts or trading stamps, arranging demonstrations or exhibitions, setting up competitions with attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and personal letters on other methods”. More than any other element of the promotional mix, sales promotion is about “action”. It is about stimulating customers to buy a product. It is not designed to be informative – a role which advertising is much better suited to. Sales promotion is commonly referred to as “Below the Line” promotion. Sales promotion can be directed at: • The ultimate consumer (a “pull strategy” encouraging purchase) • The distribution channel (a “push strategy” encouraging the channels to stock the product). This is usually known as “selling into the trade”
Methods of sales promotion There are many consumer sales promotional techniques available they are • • • • • • • Price promotions Coupons Gift with purchase Competitions and prizes Money refunds Frequent user / loyalty incentives free travel, such as free flights
Sales promotions can be directed at the customer, sales staff, or distribution channel members (such as retailers). Sales promotions targeted at the consumer are called consumer sales promotions. Sales promotions targeted at retailers and wholesale are called trade sales promotions.
Definition of CONSUMER BEHAVIOUR. Consumer behaviour is the study of how people buy, what they buy, when they buy and why they buy. It is a subcategory of marketing that blends elements from psychology, sociology, sociopsychology, anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics, psychographics, and behavioral variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.
Consumer Behaviour is defined as "the dynamic interaction of affect and cognition, behaviour, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behaviour is the psychology behind Marketing and the behaviour of consumers in the Marketing environment.
According to the American Marketing Association, Consumer Behavior is defined as "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, Consumer Behavior is the psychology behind Marketing and the behavior of consumers in the Marketing environment. Two major psychological disciplines come into play when observing and trying to explain Consumer Behavior. The first is Cognitive Psychology. Cognitive Psychology is the study of all knowledge related (mental) behaviors. The Attention, Perception, Memory/Comprehension, and Decision Making links on this
website are the various aspects of cognitive psychology that play an important role in Consumer Behavior. The second psychological discipline that has theories to explain certain phenomenon of Consumer Behavior is Social Psychology. Social Psychology is "the study ofthe manner in which the personality, attitudes, motivations, and behaviors of the individual influence and are influences by social groups" this is also an area of interest.
OBJECTIVE
GENERAL OBJECTIVE: To study the behavioral pattern of consumers, with regard to motor cycles in Chennai Corporation.
SPECIFIC OBJECTIVES:
1
To know the factors motivating a consumer to prefer a particular motorcycles among other available alternatives. To study the role of advertisements, in persuading a consumer to buy a motor cycle. To know the market leader and market share of major competitors in the motor cycle market. To know the decision-making criterion used by the consumers in deciding to purchase a motor cycle. To know the purpose for which the consumers used the motor cycle most often.
2
3
4
5
SAMPLE SCHEME: Since the study strictly confines to the household consumers of Chennai city,non probability sampling method has been used from which convenience sampling technique is adopted. PERIOD OF STUDY The research work “A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION AT CHENNAI. Was carried on from Febrauary2006 to April 2006 in Chennai only.
METHODOLOGY The research design is the basic plan that guides the data collection and analysis phases of the research project. It is the framework that specifies the type of information to be collected, the sources of data and the data collection procedure .The objective of the research project logically determines the characteristics determined in the research design.
RESEARCH DESIGN: Descriptive Research design is followed in this project. This is typically concerned with determining the frequency with which something occurs or how two variables vary together .Besides these, it helps to describe the characteristics of certain groups, to estimate the proportion of people in a specified population, to make specific predictions and to determine whether certain variables are associated.
DATA COLLECTION METHOD: Since the secondary data obtained was not sufficient to proceed with the work, primary data collection was necessary .The primary data collection was done through the personal contact method, as the study emphasized to find out the attitude of the consumers.
TARGET GROUP The study is confined to household consumer of Chennai City only.
QUESTIONNARIE DESIGN: Structured Undisguised questionnaire was used in the study for the purpose of data collection .Both close-end and open-end questions are used in this questionnaire because the statement of alternatives in the close –end questions allows the respondent in recalling and formulating the answer and in the open –end questions the respondents has got the freedom to express his views in his own words pertaining to any aspect of the issue raised.
Research Area. The Survey was carried out in Chennai localities like. ¾ Adyar ¾ Tambaram ¾ Chengalpatu ¾ Anna salai ¾ Annanagar
LIMITATIONS: 1 The results could not be applied widely without making appropriate changes for cultural and regional expectations since the study was conducted in limited area.
2
The period within which the study was completed is also very small .The accuracy of the results is limited because of very small sample size. The money and other resources at the disposal of the researcher were limited and a detailed study was not possible.
3
SCOPE OF THE STUDY 1 The study could be used in designing the motorcycles to the expectations of consumers.
2
The study could throw a light on the success of present day advertisements for motorcycles.
3
The study could help to know how much money the consumers could spend for their motorcycles.
CHAPTER ARRANGEMENTS
The chapter arrangements in this research report are being divided in to four sections of the report consists of introduction about the research work ,the problem statement for carrying on the research work, the sample scheme and methodology ,the scope and limitations in doing the research work .
The second section consists of the literature review, the profile of the company and the product profile .The third section is wholly dedicated to the data analysis and interpretation and conclusion .The final part of the research report consists of the findings and recommendations given by the researcher to the company.
OPERATIONAL DEFINITIONS: The operational definitions of the statistical tools used are given below. 9 Chi –Square test-Independence of attributes.
A chi-square test of statistical independence is employed when the researcher wants to know whether there are associations between two or more variables in a given study. Two variables are statistically independent if knowledge of one would offer no information as to the identity of the other. The concept of independence is really central not only to the Chi- Square statistic but to all association measures. 9 Two Way Analyses Of Variances The analysis of variance in such problems where the researcher wants to test for the significance of the differences between two sample means. In One –Way classification, data are classified according to one criterion. The null hypothesis takes the form Ho: µ1=u2 =u3 =u k, i.e., the arithmetic means of the population from the k samples are
randomly drawn, is equal to one another. ANOVA stand for Analysis for Variance, the generic name given to a set of techniques for studying cause-and-effect of one or more factors (independent variable) on a single dependent variable .The analysis of Variance technique is used when the independent variables are of nominal scale (categories) and the dependent variable is metric (continuous) .The application areas in marketing research for experiments using ANOVA as the analytical method are wide. Whenever a marketing mix variable (independent variable) such as price, a specific promotion of type of distribution, even specific elements like shelf space, or colour, of packaging and so on is changed, We would want to know its effect .Under proper conditions, as experiment can tell us the effects of specific variations in one or more elements of the marketing mix.
This particular design is used when there is only one categorical independent variable and one dependent (metric) variable. Each category of an independent variable is called a level. The independent variable may be different levels of prices, or different pack sizes, or different product colours, and effect (dependent variable) could be sales of the product. In this type of design, we random ally allocate the various sampling elements to the different levels of the independent variable and measure the resulting dependent variable .Then, we conduct an F-test under the ANOVA to test the null hypothesis that the mean values of the dependent variable are not significally different from each other, at different levels of the independent variable. If the computer output from the F-test shows a significance level (p-value) of less than .05 on the ANOVA table, the null hypothesis is rejected .If the P-value from the F-test is greater than or equal to 05, the null hypothesis is accepted .Thus, if the P-value from the F-test is less than 05 .It proves at the 95 percent confidence level that variation in the independent variable is able to cause significant variation in the dependent variable. That is one variable depends on the other, assuming other variables are not in the picture.
A randomized block design is used, if there is an additional variable (called the block) which has an impact on the relationship between the independent and dependent variables. This variable is accounted for in the design of a randomized block design by explicitly changing the levels of the block and testing if that has an impact on the relationship between the independent and dependent variables .An example of this is the day of the week having an impact on the relationship between type of display ina store (independent variable) and sales (dependent variable).Another example is the magazine in which an advertisement appears (block) affecting the impact (dependent variable) of different versions of the ad (independent variable).
If two or more independent variables are to be tested through an ANOVA ,we use a factorial design, because each independent variable in ANOVA is also known as a factor .The factorial design can accommodate several factors(independent variables) at several levels (categories)each. The major difference in analysis factorial design with two or
more factors is that interactions of two or three factors among themselves form a separate effect. These interaction effects need to be tested along with the main effects of individual factors. This is quite easy to do on computer, but care should be taken to assign sampling units or elements to each combination of the factors being tested for their effects. The interaction effects should first be looked at see if they are significant (p-value less than 05 on the ANOVA table).which would on the analysis may stop there. If not, we must also look at the results of the individual factor F-test (called the main effects) to check if the factors individually have an effect on the dependent variable.
LIKERT SCALE: In Likert’s method, the respondents is asked to rate each statement on the basis of strength of personal feelings towards it. While applying Likert scale for research project, the statements are selected from a larger list that has been evaluated by a panel of judges. The statements finally chosen are those for which there is a greatest among the judges in terms of scores assigned.
THEORITICAL SETTINGS
Motor cycle Industry in India –An Overview
Important players in Indian Motor Cycle Markets:
Hero Honda: The company is the collaboration between the world’s largest motor cycle manufacturer and the largest manufacturers of bicycles. Hero Honda is today the largest selling Indian motor cycle and the most Fuel efficient in the category .Excellent marketing also helped Hero Honda establish as an Leading player in the motor cycle market .It operates the mobile work shop’s in deep interiors of the country .It has an efficient dealer network across the country to facilitate the purchase .Hero Honda motors have recently turned its attention overseas and the exports have been steadily on the rise ,The company also discharge its social obligations by operating a mobile dispensary van I service of those living within a 10 km radius of its plan and others similar facilities. YAMAHA
Yamaha is originally a Japan based multinational company incorporated in 1887 .It was producing reed organs initially and now it has become the world’s largest manufacturer of musical instruments, leading producer of audio visual products and other products. Yamaha now owns 44 subsidiaries and representative offices in overseas market. It has started its subsidiary unit in America, in 1960 and since the have expanded its market share all over the world .The Yamaha motor corporation Ltd ,begun in 1955 is the major part of the Yamaha group .But is a separately managed business entity from Yamaha corporation. The Yamaha motor corporation is the second largest manufacturer of motor cycles in the U.S called Yamaha motor Corporation U.S.A that is handling not only motor cycle, but also snowmobiles, golf court, outboard engines and water vehicles under the brand name of Yamaha.
TVS The Tvs was initiated by thriu.T.V sundaram Iyengar, by introducing a first ever rural bus service operate between madurai and devakottai in the state of Tamil nadu .Tvs started its first production of two wheelers .This move was the result of the vision of the late Mr.T.S.Srinivasan, the founder of Sundaram Clayton-a TVS Group Company in 1982 Indian Motor cycle Pvt, Ltd, was incorporated to manufacture motor cycle in collaboration with Suzuki Japan. During the year 1992-1994, company have launched a series of new vehicles including scooty,samurai,shoghun, max100,victor,star city, apache.
BAJAJ The bajaj group was founded by Mr.Jamnalal Bajaj.The Company Gained fast momentum when the elder son Jamaal Bajaj took over the diversified the production in to various manufacturing activities and elevated the group to the status it is enjoying now ,From 1968,Rahul Bajaj is the CEO of bajaj group .Bajaj is currently the India’s largest two and three wheeler manufacturer is one of the biggest in the world by now Bajaj had been become as one of the competitor in the two wheelers ,in Indian market.
CURRENT TRENDS: India is highly populous country with the huge middle class population .Two Wheelers are becoming a most common mode of transport for middle classes. India is the world’s largest two wheelers market with its 3.1 million motorized bi wheelers sold .Current SALES REPORTS JANUARY
TVS MOTOR COMPANY REPORTS TURNOVER OF Rs. 883.38 CRORES , RECORDS 8.4% GROWTH.PBT Rs. 45.03 crores at 7% growth & PAT Rs. 31.06 crores at 10% growth TVS Motor Company recorded a turnover of Rs. 883.38 crores in the third quarter ended December 2005 compared to Rs. 815.23 crores achieved in the corresponding period last year, registering a growth of 8.4%. The total two wheelers sold in Quarter Three ended December 2005 was at 358,559 units compared to 322,412 units in the same period last year, recording a growth of 11.2%. The concerted efforts have helped the company to improve its market share in motorcycles to 13.3% at the end of the third quarter compared to 12.6% in the first quarter of this fiscal year. In December 2005, the company achieved a new milestone with the launch TVS Apache. This stylish and performance driven motorcycle has already won good reviews from several two-wheeler experts. Apache won three “best bike of the year” awards by CNBC TV18 AUTOCAR India, OVERDRIVE and Business Standard Motoring. On design front too the Apache won two top awards namely “best design of the year” by BBC Top Gear and “best indigenous design of the year” by OVERDRIVE. TVS Apache was showcased at the Auto Expo 2006 in New Delhi and the response has been very encouraging. TVS Apache will be available in key markets by the end of February 2006 and with this launch the company will gain significant volumes and improve its presence in the premium segment of motorcycles. TVS StaR City continued to receive good response across all markets and has enabled the company to make significant inroads in the economy segment of the motorcycle market and TVS StaR has crossed the 50,000 units mark per month.Scooty Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant player in the ungeared scooter category. The total two wheelers sold in nine months ended December 2005 was at 991,514 units compared to 870,845 units in the same period last year, recording a growth of 13.9%. FEBRAUARY TVS Motors records 25% growth in motorcycles in January,Overall 2-wheeler growth 20%Beginning the New Year on a spirited note, TVS Motor Company has recorded a growth of 25% in the number of motorcycles sold during January 2006 over the corresponding period in the previous year. The total motorcycle sales in January 2006 stood at 69,278 units compared to 55,639 units recorded during January 2005.The company’s total two wheeler sales in January 2006 clocked 112,909 units compared to 94,467 units in January 2005 recording a growth of 20%. The performance in January 2006 represents the shape of things to come in the coming months. While the performance of new brands launched last year, in particular, StaR City continue to beat expectations, TVS Apache, the new 150 CC motorcycle in the premium segment promises to be a winner as it has already won several coveted awards for its overall performance and style. TVS Apache performed a hat trick last month by winning the “best bike of the year”
award from CNBC TV18 AUTOCAR India, OVERDRIVE and Business Standard Motoring. TVS Apache also won two top design awards namely “best design of the year” by BBC Top Gear and “best indigenous design of the year” by OVERDRIVE. TVS Apache was showcased at the Auto Expo 2006 in New Delhi, and elicited encouraging response from the visiting public. The new motorcycle will be available in key markets by the end of February 2006 and with this launch the company plans to gain significant volumes and improve its presence in the premium segment of motorcycles. TVS StaR City is amongst the few bikes that have crossed the sale of 50,000 units per month. StaR City has enabled the company to make significant inroads in the economy segment of the motorcycle market. TVS Scooty recorded 17,957 units in January 2006 compared to 14,724 units in the same period last year recording a growth of 22%. Scooty Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant player in the ungeared scooter category. In the export front, TVS Motor Company continued its robust performance having exported 6,374 units in January 2006. Exports recorded a growth of 147% compared to the same period last year.
MARCH Aggregate sales touch 108,923 units
The upward sales trend in motorcycles continued for TVS Motor Company (TVS M) in February 2006 as it posted a growth of 16%. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18% in motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company. The strong growth in motorcycles has pushed the sales of total two wheelers units in February 2006 to 108,923 units compared to 96,020 units recorded last year, a growth of 13%. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category. TVS Apache, the new 150 cc sensation and the winner of three ‘bike of the year’ awards by leading Auto Magazines received overwhelming response in Chennai where the commercial launch was commenced in late February. TVS Apache will be available in other key markets in phased manner and the company hopes to gain significant volumes and improve its presence in the premium segment of motorcycle market. In scooters, different variants of TVS Scooty clocked 16,052 units of sales in February
2006 compared to 15,900 units. On the export front, TVS continued with its growth trend with export of 6,007 vehicles in February 2006, a growth of 73% compared to the corresponding period in the previous year. TVS Motor Company Limited, the flagship company of the USD 2.7 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 740 million. The company is the only two-wheeler manufacturer in the world to be honoured with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.
TVS Motor Company continues to make rapid strides with a record of 16 per cent last month during this fiscal. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18 per cent in
motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company.The strong growth in motorcycles has pushed the sales of total two wheelers units in February 2006 to 108,923 units compared to 96,020 units recorded last year, a growth of 13 per cent. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category. TVS Apache, the new 150 cc sensation and the winner of three 'bike of the year' awards by leading Auto Magazines received overwhelming response in Chennai where the commercial launch was commenced in late February. The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS expects to close this year with a growth of 18 per cent in motorcycle sales and the highest volumes ever achieved in the history of TVS Motor Company. Motor Company exported 18,205 units of two wheelers in the third quarter of this fiscal year as against 12,253 units sold during the same period last year registering a growth of 49%. The exports in the nine months ended December 05 stood at 61,320 units compared to 36,666 units recording a growth of 67%.
ABOUT TVS MOTOR COMPANY
TVS Motor Company Limited, part of the TVS Group, is one of India's leading twowheeler manufacturers. With a turnover of over Rs 2800 crore ($574.94 million), the company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. TVS Motor Company Limited is one of the largest two-wheeler manufacturers and also among the fastest growing companies in the country. It is the largest manufacturer of sub 100cc (50cc, 60cc & 70cc category) 2-wheelers in the world. It has the unique distinction of having sold nearly 4 million mopeds the highest ever in India. It exports its range of products to 17 countries worldwide. The company has 4,000 highly motivated employees working in two manufacturing plants in Hosur and Mysore. The company manufactures motorcycles, mopeds, scooterettes and scooters. Today, there are over thirty companies in the TVS Group, employing more than 40,000 people worldwide and with a turnover in excess of USD 2.2 billion. With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers, auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance and insurance. was established in 1911 by Shri. T V Sundaram Iyengar. As one of India’s largest industrial entities it epitomizes Trust, Value and Service. TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million. The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable personal transportation. For the Indian Automobile sector, it was a breakthrough to be etched in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be honored with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.
Milestones Many firsts 9 India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980.
9 First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984. 9 Launched India's first indigenous Scooterette (sub-100cc variomatic scooters), TVS Scooty in June 1994. 9 Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in Dec 1996. 9 Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997. 9 Launched TVS Fiero, India’s first 150 cc, 4 stroke motorcycles in April 2000. 9 Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; India’s first fully indigenously designed and manufactured motorcycle. 9 Launched TVS Centra in January 2004, a world-class 4-stroke 100 cc motorcycle with the revolutionary VT-i Engines for best-in-class mileage. 9 Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough terrain. NETWORK TVS Motor Company has one of the most extensive networks with over 500 dealers and 2500 Customer touch points. We are the first in the two-wheeler industry to measure customer satisfaction, audited by external consultants of international repute. We have taken care to standardize facilities across all customer touch points. Up gradation of facilities and continuous improvement in all processes is given importance. The company also takes an active part in imparting training and capability building in all areas including sales, service and business management.
All our dealers are connected through the extended network of SAP, ensuring operational efficiency.
Supply Chain Management Forming the inner rung of the extended TVS family, our suppliers are involved at every stage of product development.
We extend core values and best practices to all our suppliers. Through continuous training forums we impart TPM (Total Productivity Maintenance) and JIT (Just in Time) practices. Our suppliers are committed to quality through continuous improvement and up gradation of processes. This has helped them obtain prestigious international certifications like ISO 9000, QS 9000 & TS 16949. We also facilitate knowledge sharing by reputed international consultants in order to build & enhance management expertise within our supplier base.
PRODUCT PROFILE: The TVS products are very use friendly. There are various kinds of vehicles are there in TVS brand. So the customers can able to purchase the vehicle according to their wish. TVS 50 This has engine capacity of 50cc it’s very comfortable for lower class and middle class people .We can able to ride this vehicle on any kinds of road .This can be serviced by ordinary mechanics to professionals and even owners. TVS SCOOTY This has as an engine capacity of 80cc .It’s very comfortable for ladies. Because of its low maintenance, good mileage and favor price. In scooters, different variants of TVS Scooty clocked 16,052 units of sales in February 2006 compared to 15,900 units.
TVS VICTOR This is a four–stroke bike with the engine capacity of 110cc.highly mileage of 70 km\liter .The feature involved in the customer purchase was style,colour,performance etc. This bike having special technology of mode indicators (Economy, Power).This is a fastest moving bike among TVS motors.
TVS APACHE This is a four –stroke bike with the engine capacity of 150cc. The company claimed that Apache would give 60 km per liter on normal conditions. Apache is powered by 13.5 Brake Horse Power (BHP) engine. Apache will sports wide tyres in black alloy wheels of 17-inch in the front and 18-inch at the rear to facilitate greater road grip. Apache comes with an Inductive Digital Ignition (IDI) technology that gives a host of benefits to the rider including excellent engine response, consistent fuel economy and good 'cold start
ability'. The Business Standard Motoring Bike of the Year 2006 is the superb new TVS Apache.
TVS STAR CITY This is a four–stroke bike with the engine capacity of 100cc.highly mileage of 70 km\liter .The feature involved in the customer purchase was style,colour,performance etc..This is a fastest moving bike among TVS motors in both urban and rural areas. During February, TVS StaR City continued its steady growth and together with the StaR brand has helped TVS M garner over 27 per cent market share in the economy segment. The economy segment accounts for about 39 per cent of the total motorcycle category.
DATA ANALYSIS AND INTERPRETATION
Nature of the occupation Self employed Professional Government employee Private employee TOTAL Source: computed.
Number of Consumers 20 12 45 23 100
PERCENTAGE (%) 20 12 45 23 100.0
INFERENCE The above table shows occupation of sample consumers. Government employees constitute the majority with 45% share.20% of consumers are self employed, 23% of consumers are employed in private concerns, where as only.12% of consumers are professional
OCCUPATION OF THE RESPONDENTS
Self employed Professional Government employee 10% 6% Private employee TOTAL 49% 12% 23%
GROSS FAMILY INCOME OF THE CONSUMERS
Range of Income Up to Rs 5000 5000-10,000 10,000-15,000 15,000-Above TOTAL
Number of consumers 11 42 30 17 100
PERCENTAGE (%) 11 42 30 17 100.0
INFERENCE The table brings out the gross family income of the sample consumers earn 5000-10,000 per month .They constitute the majority of mobile owners11% of consumers same earning 5000 and below per month .30% of consumers earn above 10,000 per month.
INCOME LEVELS OF THE RESPONDENTS
250 NO.OF RESPONDENTS 200 150 100 50 0 Up to Rs 5000 5000-10,000 10,00015,000 SALARY P.M 15,000Above TOTAL PERCENTAGE (%) Number of consumers
MONTHLY EXPENSES ON MOTOR CYCLE
RANGE OF EXPENDITURE UP to Rs 250 250-500 500-1000 1000 and above TOTAL
NO.OF CONSUMERS 51 34 10 5 100
PERCENTAGE (%) 51 34 10 05 100
INFERENCE From the above table shows 34% of peoples spend Rs 250-500p.m ,51% spend up to Rs 250 pm towards their motor cycle.10% of consumers have a monthly expenditure of Rs 500-1000 p.m for motor cycles .Only 5 consumers out of 100 consumers spend 1000 and above for their motorcycles.
MONTHLY EXPENSES ON MOTOR CYCLE
26%
UP to Rs 250 250-500 500-1000
49% 17% 3% 5%
1000 and above TOTAL
TWO WHEELERS PREVIOULY PREFERED BY THE CONSUMERS
Brand name Mopeds Scooters Cycle Motor Cycle Nothing Total Source: Computed
No. Of Consumers 32 28 20 16 4 100
Percentage 0.32 0.28 0.20 0.16 0.4 100
INFERENCE From the above table shows that majority of the sample consumers have used mopeds before purchasing their brand.28% of consumers have preferred scooters, 14% consumers have directly purchased the motorcycles.
TWO WHEELERS PREVIOULY PREFERED BY THE CONSUMERS
4% 16% 32% Mopeds Scooters Cycle 20% Motor Cycle Nothing 28%
REASONS FOR SHIFTING FROM THE PREVIOUS TWO WHEELERS.
Reasons Fuel economy Better engine power More comfortable and sophisticated Other reasons Total Source: Computed INFERENCE
No. Of Consumers 52 21 15 12 100
Percentage 0.52 0.21 0.15 0.12 100
From the above table we can infer that most of the consumer i.e. 52% has shifted from the previous two wheelers for the fuel economy. Comfort ability and sophistication was the reasons given by 15% of consumers 21% consumers either for better engine power and12% of consumers have other reasons for making the shift.
REASONS FOR SHIFTING FROM THE PREVIOUS TWO WHEELERS.
12% 15% 52% 21%
Fuel economy Better engine power More comfortable and sophisticated Other reasons
CURRENT PREFERENCE OF THE CONSUMERS
Brand Name TVS HERO HONDA BAJAJ YAMAHA OTHERS TOTAL
No. Of Consumers 29 32 28 7 4 100
Percentage 0.29 0.32 0.28 0.07 0.04 100
INFERENCE
From the above table we can infer that the present preference of consumers 32% of consumers prefer Hero Honda ,29% of consumers prefer TVS ,Yamaha and other bikes 11% of consumers are using the Bajaj company motorcycles.
CURRENT PREFERENCE OF THE CONSUMERS
7%
4% 29% TVS HERO HONDA
28%
BAJAJ YAMAHA OTHERS 32%
CRETERIA FOR DECISION MAKING
Criteria ADVERTISEMENT FAMILY MEMBERS PEER GROUP IDEAS OWN DECISIONS TOTAL
No. Of Consumers 15 30 35 20 100
Percentage 0.15 0.30 0.35 0.20 100
INFERENCE From the above table we can infer that Peer group ideas have been the deciding factor in making decisions for motorcycles. Ten consumers have been made their purchase because of family member’s stress.Advertisemnt were the criterion for decision making incase of only 15 consumers .20consumers have made their purchase based on their own analysis
CRETERIA FOR DECISION MAKING
20%
15%
ADVERTISEMENT FAMILY MEMBERS PEER GROUP IDEAS 30% 35% OWN DECISIONS
CONSUMERS RATING FOR THEIR MOTORCYCLE ADVERTISEMENT
RATINGS IMPRESSIVE GOOD NOT INTERSTING TOTAL
NO.OF CONSUMERS 16 72 12 100
PERCENTAGE 0.16 0.72 0.12 100
INFERENCE From the above table we can infer that 72% of consumers feel good of their advertisements .16% of consumers impressed by the advertisements.12% of the consumers are not satisfied with the advertisements for their motorcycle.
CONSUMERS RATINGS FOR THEIR MOTORCYCLE ADVERTISEMENT
12%
16%
IMPRESSIVE GOOD NOT INTERSTING
72%
ENGINE POWER OF THE MOTORCYCLE
ENGINE POWER BELOW 100CC 100CC-250CC 250CC-350CC TOTAL
NO.OF CONSUMERS 35 55 10 100
PERCENTAGE 0.35 0.55 0.10 100
INFERENCE From the above table we can infer that100cc and below 100cc is the engine power preferred by 35% of the consumers. 55% of the consumers have bikes with 250cc and 10% of the consumers have bikes with 350cc.
ENGINE POWER OF THE MOTORCYCLE
10% 35% BELOW 100CC 100CC-250CC 250CC-350CC 55%
FEATURES DISLIKED BY THE CONSUMERS IN THEIR MOTORCYCLES
FEARTURE FUEL ECONOMY COSTLIER TECHNOLOGY SERVICING OTHER REASONS TOTAL
NO.OF CONSUMERS 56 24 15 3 2 100
PERCENTAGE 0.56 0.24 0.15 0.03 0.02 100
INFERENCE From the above table we can infer that 56% of the consumers said that the fuel economy is the factor they dislike their bikes .15% of the consumers said that technology is the disliking factor.24% of the consumers said that they were disappointed with the cost of their bike.3%and 2% of the consumers are dissatisfied with the servicing and other reasons.
FEATURES DISLIKED BY THE CONSUMERS IN THEIR MOTORCYCLES
6% 14% FUEL ECONOMY 44% 19% COSTLIER TECHNOLOGY SERVICING
OTHER REASONS
17%
SERVICING FACILITIES OFFERED BY THE COMPANIES –CONSUMER OPINION
RATING VERY GOOD GOOD BAD TOTAL INFERENCE
NO.OF CONSUMERS 38 54 8 100
PERCENTAGE 0.38 0.54 0.08 100
From the above table we can infer that most of the consumers 54% were satisfied with the servicing facilities offered by the companies .38% of the consumers were highly satisfied of the service facility offered.8% of the consumers felt badly of the service facilities offered.
SERVICING FACILITIES OFFERED BY THE COMPANIES –CONSUMER OPINION
17%
19% VERY GOOD GOOD BAD 64%
SERVICING INTERVALS TIME INTERVAL EVERY 3 MONTHS EVERY 6 MONTHS EVERY12 MONTHS TOTAL NO.OF CONSUMERS 58 30 12 100 PERCENTAGE 0.58 0.30 0.12 100
INFERENCE From the above table we can infer that 58. % of the consumers goes for servicing in every 3 months and 30% of the consumer services their bike in every 6 months. Only 12% of the consumers are used to service their bikes once in a year.
SERVICING INTERVALS
11%
EVERY 3 MONTHS 31% 58% EVERY 6 MONTHS EVERY12 MONTHS
KILOMETERES TRAVELLED PER MONTH (IN AVERAGE)
NO.OF KM'S/MONTH BELOW 300 Kms 300-500Kms 500-1000Kms ABOVE 1000Kms TOTAL
NO.OF CONSUMERS 27 45 13 15 100
PERCENTAGE 0.27 0.45 0.13 0.15 100
INFERENCE From the above table we can infer that 45% of the consumers travels 300500Kms/Month.13% of the consumers travels, either below 300Kms or between 5001000 Kms /Month .Only 15% of the consumers travel above 100kms per month.
KILOMETERES TRAVELLED PER MONTH (IN AVERAGE)
15% 32% BELOW 300 Kms 300-500Kms 500-1000Kms 53%
MILAGE OFFERED
NO.OF KM'S/Liter UP TO 35Kms/ltr 35-50 Kms\ltr 50-75 Kms\ltr ABOVE 75 Kms\ltr TOTAL
NO.OF CONSUMERS 36 47 12 5 100
PERCENTAGE 0.36 0.47 0.12 0.05 100
INFERENCE From the above table shows that 12% of the consumers get 50-75 Kms\Lr of mileage.47% of the bike offers 35-50 Kms\Lr of mileage .36% of the bikes gives only 35 Kms\Lr and below.5% of the consumers get a mileage of more than 75 Kms\Lr.
MILAGE OFFERED
50 45 40 35 30 25 20 15 10 5 0
UP TO 35Kms/ltr 47 36 12 UP TO 35Kms/ltr 35-50 Kms\ltr 50-75 Kms\ltr 35-50 Kms\ltr 50-75 Kms\ltr
CONSUMERS RESPONSE FOR EXCHANGE MELAS
OPTIONS YES NO TOTAL
NO.OF CONSUMERS 38 62 100
PERCENTAGE 0.38 0.62 100
INFERENCE From the above table shows that 38% of the consumers have expressed willingness to accept the exchange offers and 62% of the consumers have returned to accept the exchange melas .If anywhere offered by the consumers.
CONSUMERS RESPONSE FOR EXCHANGE MELAS
70 60 50 40 30 20 10 0 YES NO 38 62 YES NO
CONSUMER EXPECTATION ABOUT THE BIKE
FEATURES TECHNOLOGICAL FEATURE FUEL ECONOMY COST ENGINE POWER TOTAL
NO.OF CONSUMERS 30 52 10 8 100
PERCENTAGE 0.30 0.52 0.10 0.08 100
INFERENCE From the above table shows that 52% of consumers have suggested fuel economy and 30% is technological features to make their motorcycle a best one.10% of the consumers suggested cost of the bike and 8% of the consumers suggested engine power is the better feature.
CONSUMER EXPECTATION ABOUT THE BIKE
8% 10% 30% TECHNOLOGICAL FEATURE FUEL ECONOMY COST ENGINE POWER 52%
CONSUMERS EXPECTATION ABOUT THE SERVICE OF THE BIKE
YEARS 0-5 YEARS 5-10 YEARS 10-15 YEARS ABOVE 15 YEARS TOTAL
NO.OF CONSUMERS 30 54 12 4 36
PERCENTAGE 0.30 0.54 0.12 0.04 100
INFERENCE From the above table shows that 54% expect their motorcycle to serve them for 5-10 years.30% of the consumers wish to use their bikes for 0-5 years.1/4th of the consumers expect to use 10-15 years and 12% of the consumers want to use their motorcycle for more than 15 years.
CONSUMERS EXPECTATION ABOUT THE SERVICE OF THE BIKE
60 50 40 30 20 30 10 0 0-5 YEARS 5-10 YEARS 10-15 YEARS 12 4 ABOVE 15 YEARS 54 0-5 YEARS 5-10 YEARS 10-15 YEARS ABOVE 15 YEARS
DECISION MAKING CRETERIA OF THE CONSUMERS
AGE UP TO 25 25-35 35-45 45-55
ADVERTISEMENT 2 1 1 2
FAMILY MEMEBRS STRESS 0 4 3 3
PEER GROUP IDEAS 1 5 3 9
INDIVIDUAL DECISION 0 2 0 0
INFERENCE From the above table shows that the age group and the decision-making criteria. Consumers with the age of 25 years consider advertisement as the criteria for decisionmaking. Consumers in the age of 25-35 keep peer group ideas and family members stress on decision –making criterion. Consumers in the age group of 35-45 also have the same criteria while making decicions.Consumer of age group 45-55 were keeping peer group ideas as their decision making criterion most cases.
INCOME LEVEL AND THE ATTRACTING FEATURE INCOME LEVEL UP TO 5000 5,000-10,000 10,000-15,000 ABOVE 15,000 SERVICING FUEL FACLITY ECONOMY COMFORTABILITY OTHER 0 1 1 1 6 0 1 2 8 4 0 3 0 2 2 1
CHEAPER 0 1 3 0
INFERENCE From the above table shows that the income level and the attracting features are compared .Consumers having an income of below Rs5, 000 were attracted by both fuel and comfort ability. Income group of 5,000-10,000 was mostly attracted by comfort ability. Income group of 10,000-15,000 was attracted by cheaper prices. Consumers of earning group 15,000 and above were mostly attracted by fuel economy and comfort ability.
INCOME LEVEL AND NO.OF Kms.TRAVELLED PER MONTH
INCOME LEVEL UP TO 5000 5,000-10,000 10,000-15,000 ABOVE 15,000
BELOW 300 0 2 2 1
300-500 3 1 0 2
500-1000 6 3 3 2
ABOVE 1000 5 2 2 2
INFERENCE From the above table brings out the relationship between the income level and the Kms traveled by the consumers. Income group of below Rs 5,000 id traveled monthly above 500Kms every month .All the other income groups travel evenly.
RANK CORRELATION
BIKES
AGE GROUP 2535 1 2 2 0 0 3545 0 2 0 2 1 4555 0 1 4 0 0
Below 25 BAJAJ 1 HONDA 0 TVS 1 YAMAHA 3 OTHERS 0
d1 AB 0 -2 -1 3 0
d2 AC 1 -2 -1 3 0
d3 AD 1 -1 -3 3 0
d4 BC 1 0 2 -2 -1
d5 BD 1 1 -2 0 0
d6 CD 0 1 -4 2 1
d1
d2
d3
d4
d5
d6
0 4 1 9 0
1 4 1 9 0
1 1 9 9 0
1 0 4 4 1
1 1 4 0 0
0 1 16 16 1
Calculation:
(A, B) = 1-0.7 (A-C) = 1-0.75 (A, D) = 1-1 (B, C) = 1-0.5
=0.3 =0.25 =0 =0.5
(B, D) = 1-36/120 = 0.7 (C, D) = 1-132/120 = -0.1
INFERENCE The table shows that the rank correlation. The researcher to find out the age groups that have close ideas and preference in purchasing a motorcycle used the table .From the above table shows the calculation it’s observed that age group 25-35 and 35-45 have similar preference for motorcycles than all the other groups.
INCOME LEVEL vs. NUMBER OF KM .TRAVELLED PER MONTH Analysis Of Variance Below 300 < = 5000 5000-1000 10000-15000 > = 15000 Calculation: Hypothesis Ho: there is no significant difference between income level and number of K/m traveled per month. H1: There is significant difference between income level and number of K/m traveled per month 0 2 2 1 300-500 3 1 0 2 500-1000 6 3 3 2 >1000 3 2 2 2
Test statistics: F treatment = Variance of treatment ------------------------Variance of error F block = Variance of block ----------------------Variance of error Correction factor: T =36, N=16, then correction factor is given by C.F = T2/N. C.F = (36)2 ---- = 1296/16 = 81 16 Total sum of squares: TSS = xij2 –C.F
TSS = 9+36+25+4+1+9+4+4+1+4+4+4-81 =118-81 = 37 Degree of freedom = 16-1 = 15
Sum of squares of Treatment: SST= (average of the treatment) C.F. =49+16+12.25-81 =89.50-81 =8.5 Degree of freedom =4-1 =3
Sum of squares of block: SSB = (average of the block)-C.F =6.25 +9+49+30.25-81 =94.50-81 =13.5
Degree of freedom =4-1=3
Tabulation: Source SST SSB ERROR TSS SS 8.5 13.5 15 37 D.F 3 3 9 15 Variance 2.8333 4.5 1.6667 F-Test 1.6999 2.6999
Inference: As per the table the calculated value is 1.6999and 2.6999 and the table value for its respective degree of freedom is 3.86 and 3.86. F- Tabulated value for treatment (3, 9) =3.86 F-Tabulated value for block (3, 9) = 3.86 So calculated value is less than tabulated value, we accept the null hypothesis (H0) That is, there is no significant difference between the income level and number of Km.Travelled per month.
In this chapter the researcher has listed out the results of the analysis done in the previous chapter. These findings are the brief summary of the analysis done with the help of various statistical tools i.e table, piedia grammars, bar diagram and rank correlations. Based on these findings and observations the researcher has said out the suitable suggestions for the problem identified during these studies. ? ? ? ? Government employee constitute 45% of the sample size and 20% of the consumers are self employed Majority of the consumers earn Rs 5000-Rs 10000 P.M There were at least some amount of expenditure towards education, entertainment and health in most cases is up to Rs 500 P.M. Mopeds and scooters together have been the previous preferences of 60% consumers. Motor cycle to motor cycle shifts are very marginal.
? ?
Fuel economy and comfort ability was the inducing factor for 52 % of the consumers to make a shift. Motorcycle sales are picking up very fastly .This is revealed from the data recorded as 47.22% of the bikes were purchased within a period of five years compared to 36.11 % of bikes purchased within 5-10 years. However in the last three years there was a marginal decrease of 2.78 % in the bikes sale. For motorcycles, peer group ideas were the most effective decision making criterion. Family member’s stresses in the next effective criterion .Advertisement are found to be not an effective decision making criteria. No consumers has said that the advertisement were impressive. But most of the consumers feel good of their advertisements. Fuel economy and comfort ability was the main attracting features. Comfort ability has attracted 15 % of consumers and fuel economies have attracted 52 % of the consumers .The cost was not a major attracting feature for motorcycle.
?
? ?
? ? ? ? ?
Most of the consumers (61%) feel good about the preference of their motorcycles only (3%) of the consumers were dissatisfied of the performance of their bikes. Major feature disliked by the consumers (56%) was bad mileage. Technology and cost were the other major features disliked by the consumers. Majority feature disliked by the consumers (92%) were satisfied with their service facilities offered by the companies through dealers 3Months and below that were the ideal time interval for servicing their bikes in case of 58% of the consumers. 27% of the consumers travel around 300-500km every month 1/4th of the consumers travel below 300 kms and 500-1000 kms every month. Only 15% of the consumers go for extensive traveling i.e. more than 1000 kms p.m The cycles offering 50-75 kms/lr have highest market share (12%) closely followed by the motorcycle offering 35-50 km\lr (47%).The motorcycle which offer either below 35 km\lr or above 75 kms\lr has a very little market share (36% and 5%) respectively. Majority of the consumers doesn’t want to accept exchange melas. Only 38% of the consumers have the will to accept the exchange melas.
?
?
? ? ? ?
30% of the consumers consider technology and fuel economy as the feature that could make their motorcycle a best one in the market (52%) Of the 17 consumers who have an idea of making a shift 35.29% of the consumers preferred Yamaha .This shows that Yamaha has good future market. The second hand cars gave a threat to the motorcycles.3 consumers have opted for the second hand cars incase of making shift. Comfort ability is the main consideration for consumers of all income groups except the income group 10,000-15,000.Cost is the main consideration for them.
? ?
Consumers in the income group of Rs 5,000 and below travel extensively compared to other income groups. Engine power and comfort ability are the most common attracting feature present in all the motorcycles.
SUGGESTIONS 9 Since peer group’s ideas and the family members stress are the most inducing factors for consumers to decide on purchase of motorcycles. Hence companies should try to find out the opinion leaders in these groups by suitable sales promotion techniques. 9 The company should try to build up brand loyalty among the consumers up to 45 years of age persons. Companies have to design the best motorcycles for this purpose. 9 The performance attracts more consumers compared to fuel economy. Hence companies should design bikes. that could perform well and at same time fuel economy could not be gave up. 9 Company should concentrate more on age groups 25-35 and 35-45 since they have common preference compared to other groups. 9 Bajaj should boost up the sales of motorcycles. Since only 28% of the consumers prefer Bajaj motorcycle compare to that of Hero Honda 32% market, TVS and Yamaha also try to improve their market shares. 9 In the last 3 years there was a marginal decrease in the growth rate of
motorcycles. This should be considered and needed improvements to be made. 9 Peer groups ideas and family members stress are found to be more effective than advertisements in motivating a consumer to buy motorcycles. Hence the companies should concentrate more on other sales promotion techniques through their dealers. 9 In advertisements their brands the companies should advertise through TV’s and NEWS papers as these advertisements .The advertisements should also be impressive. 9 The company should produce motorcycles offering good fuel economy and comfort ability even at slightly higher cost, as cheaper bikes don’t attract so many consumers. 9 The consumers like red colored bike more. The companies may produce red colored bikes to attract more consumers.
CONCLUSION
Existence of a large middle class offers a great scope for the growth of motorcycle market. In the last 15 years this fact was visible seen in our Indian markets. The existing competition however makes it a tough task for the companies to be the market leader. In future bikes which are technologically supreme alone could survive in the markets like most of the other consumer products quality alone speaks in motorcycles industry also and companies producing quality products alone win the confidence of consumers.
APPENDIX -1 QUESTIONER FOR STUDYING THE PREFERENCE OF CUSTOMERS FOR TVS MOTOR CYCLE IN CHENNAI
1, Name & age of the Respondent
:
2, Education qualification of the Respondent: (a) illiterate (b) + 2 and below
(c) Graduate (U.G (or) P.G) (d) Professional 3, Occupation of the Respondent. (a)Self-Employed (b) Professional (c) Govt.Emloyee (d) Private employee 4, Family size of the Respondents. (a) 1-3 (b) 4-6 (c) 6 & above 5, No. Of earnings members in the Family (a)One (b) Two (c) Three & above 6, Gross Family income P.M of the Respondent. (a) Up to Rs 5,000 (b) 5,000 – 10,000 (c) 10,000-15000 (d) Above 15000
7, what is your monthly expenditure on the following heads? (Tick the appropriate box) EDUCATION Up to Rs 500 500-1,000 Above 1,000 ENTERTAINMENT Up to Rs 200 200-500 Above 500 HEALTH Up to Rs 500 500-1,000 Above 1,000
8, How much do you spend for your Motor cycle P.M ? (a)Up to Rs 100
(b) 100-300 (c) 300-500 (d) Above 500 9, What Motor Cycle do you own now? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others 10, How do you feel of the advertisement of your Motor Cycle? (a) Impressive (b) Fare (c) Not interesting 11, For how long you are using the Motor Cycle? (a) 1-3 years (b) 3-5 years (c) 5-10 years (d) Above 10 years
12, How will you rate the performance at your bike? (a) Very Good (b) Good (c) Not Bad (d) Poor 13, If you have owned previously a two-wheeler what was that? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others (specify) _________ 14, Give the reason for your shifting? (a) Fuel Economy (b) Better engine power (c) More Comfortable & Sophisticated
(d) Other reasons (specify) _______________________________ 15, In case of making a shift, which Motor Cycle will you buy? (a) TVS (b) Hero Honda (c) Bajaj (d) Yamaha (e) Others (specify) ________________________________ 16, How long do you expect your Motor Cycle to serve you? (a) 1-3 years (b) 3-5 years (c) 5-7 years (d) 7-10 years (e) Above 10 years
17, What feature attracted you most to this motor cycle? (TVS) (a) Its cheapness (b) Adequate servicing facilities (c) Fuel economy (d) Comfortable to use (e) Others (specify) __________________ 18, Which color is suitable for the Motor Cycle? (a) Red (b) Blue (c) Green (d) Black (e) Gray (f) Others 19, How do you feel the service facilities offered by companies through their dealers? (a) Very Good (b) Comparatively Good (c) bad
20, Specify the engine power of your Motor Cycle?
21, What is the Mileage offered by your Motor Cycle? (a) Up to 35 km/litre (b) 36 to 50 km/litre (c) 51-75 km\litre (d) Above 75 km\litre 22, How many Kms do you travel every month in an average?
23, At what time interval do you go for servicing ? 24, What features should be developed in TVS motor Cycle to make it as the best?
25. Will you go in for a new one if the company offers any “Exchange mela”?
26, For what purpose do you use your motor cycle often? (a) To commuting to the work place (b)To meet the household needs (c)For entertainment and fun (d) For office works 27, Please select the category of service work performed for this visit (a)Warranty (b) Non-warranty (c) Oil change\Factory scheduled Maintenance (d) Other 28, After your service visit, did someone from the dealership contact you by phone or by e- mail to see if you were satisfied with overall Service experience? (a) Yes (b) No (c) Not at all
29, overall, how would you rate the dealership staff that you bought the vehicle from? (a) Excellent (b) Very good (c) Good (d) Average (e) Bad
APPENDIX -2 QUESTIONER 2 QUESTIONER FOR SERVICE PROCESS
INTERVIEWED BY: OWNED : DEALER NAME:
DATE:
VEHICLE:
PLACE:
Q1, As I read aspect I would like you to express your opinion by rating the dealer I request you to give marks out of 100 for each aspect.
10 20 30 UNACCEPTABLE
40
50
60 AVERAGE
70
80
90 100 OUTSTANDING
SL.NO MARKS 1. 2. 3. 4. 5.
STATEMENT
Quality of work performed Overall performance of the service personnel Honesty and integrity of service personnel Ability to fix problem’s the first time Service personnel’s understanding of the problem
6. 7.
Length of time to have your two wheeler serviced Courtesy and friendliness of service personnel
Q 2 , I would now like you to answer a few questions relating to your experience with dealer at that time of taking the vehicles.
SL. NO
STATEMENT
YES
NO
SL STATEMENT
YES
NO
Was the service work fully Explained before servicing?
7
Did the person take you 2-wheeler for service listen to all problems patiently and do enough probing to understand the problems?
Was a Written estimate of the Service amount provided before Servicing?
8
Did the person take your 2-wheeler for road trail?
Were the charges for servicing Reasonable?
9
Did the service center charge you for free service carried out on your 2-wheeler(except oil change)
Did the dealer explain the work Done after servicing
10
Were you asked to deposit money for warranty replacement?
Was the vehicle returned clean And washed? In your opinion, does this TVS Dealership value your service Business?
11
When you arrive the service center for booking, did someone attend to You within a reasonable time?
Q3, I would like you to give marks for the overall satisfaction with the service capabilities of the RamKay agencies (TVS) dealer you’re visited most recently. 10 20 30 UNACCEPTABLE 40 50 60 AVERAGE 70 80 90 100 OUTSTANDING
BIBLIOGRAPHY
BOOK NAME Contemporary Marketing The Dictionary Of Marketing Marketing Management Marketing Management Fundamentals of marketing Marketing Concepts And Applications Marketing Management Marketing Management Modern Marketing
AUTHOR NAME Boone & Kurtz Rona Ostrow Philip Kotler Crurens Hills Wooruf William J.Stanton Charles D.Schewe Ramasamy Subbi Redid RSN Pillai & Bagavathi
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