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  • 1. A MINOR PROJECT REPORT ON  CUSTOMER BUYING BEHAVIOUR IN BIKES TAKING TVS FORCOMPARISON SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF DEGREE OF BACHELOR OFBUSINESS ADMINISTRATION (B.B.A.) G.G.S. INDRAPRASTHA UNIVERSITY, DELHI PROJECTGUIDE Ms. Vandana Deswal (Assistant Professor) SUBMITTED BY: Chirag GuptaENROLLMENT NO. 02821201709SESSION 2009-2012MAHARAJA SURAJMAL INSTITUTE C-4, Janak Puri, New Delhi-1100581
  • 2. CERTIFICATEThis is to certify that CHIRAG GUPTA, Enrollment No. 02821201709 has completedhis minor project report. He has done a project on  Customer buying behaviorin bikes taking TVS for comparison . This project is a partial fulfillment ofB.B.A. (GEN) programme from MAHARAJA SURAJMAL INSTITUTE, affiliated to GURUGOBIND SINGH INDRAPRASTHA UNIVERSITY, under my guidance. Hereby, it is declaredthat this project is an original piece of work and has not been influenced tothe extent of copying by any other such similar study.Ms. VANDANA DESWAL (Assistant Professor) (M.S.I.)2
  • 3. ACKNOWLEDGEMENTI would like to express my sincere gratitude to Mr. Niraj Kumar, NationalService Manager, TVS Motor Company Limited for giving me the exposure of whatthe real market actually is and special thanks to Mr. P. S Basu Area Manager TVSMotor Company Limited, without whose invaluable guidance and support thisproject could not have been accomplished. I greatly acknowledge my indebtednessto all those respondents and Mr. Praveen Kumar Gaur Area Coordinator GS TVS NewDelhi who rendered direct or indirect help in completing this project. I wouldalso like to express my sincere thanks to, Maharaja Surajmal Institute, NewDelhi and my organizational guide Ms. Vandana Deswal.CHIRAG GUPTA BBA (G) 2009-2012 028212017093
  • 4. PREFACESomeone has rightly said that practical knowledge is far better than classroomteaching. During this project I fully realized this and I came to know about howa consumer chooses among a varied range of products available to him. Thesubject of my study is market survey of customer buying behavior in bikes takingTVS for comparison, which has slowly but steadily evolved, from a beginner to acorporate giant earning laurels and kudos throughout. The report contains firstof all brief introduction about the company. Finally there comes datapresentation and analysis in the end of my report. I also put forward some of mysuggestion hoping that they help TVS Motor Company move a step forward to beingthe very best.4
  • 5. CONTENTSChapter 1 : • Company Profile • Introduction of the Project • Scope ofStudy • Objectives Chapter 2 : Research Methodology • Sample Size • SampleLocation • Research Type • Data Type • Instruments Chapter 3 : Finding andDiscussions Chapter 4 : • Recommendations • Limitations • Summary andConclusions 06-35 07 34 35 35 36-40 37 37 38 38 40 41-64 65-72 66 67 68 73 74-77References / Bibliography : Annexure Questionnaires :5
  • 6. CHAPTER-1COMPANY PROFILE INTRODUCTION  SCOPE OF STUDY  OBJECTIVE6
  • 7. INTRODUCTIONThe TVS Group is one of Indias largest industrial conglomerates. TV SundramIyengar and Sons Limited, established in 1911, is the parent and holding companyof the TVS Group. TVS Motor Company is the third largest two-wheelermanufacturer in India and one among the top ten in the world, with annualturnover of more than USD 1 billion in 2008-2009, and is the flagship company ofthe USD 4 billion TVS Group. With a workforce of over 5000, the company has 4plants - located at Hosur and Mysore in South India, in Himachal Pradesh, NorthIndia and one at Indonesia. The company has a production capacity of 300thousand units a year. TVS and Sons also distribute Heavy Duty CommercialVehicles, Jeeps and Cars. It represents premier automotive companies like AshokLeyland, Mahindra and Mahindra Ltd., Fiat and Honda. It also distributesautomotive spare parts for several leading manufacturers. TVS & Sons has growninto a leading logistics solution provider and has set up state-of-the-artwarehouses all over the country. It has also diversified into distributingGarage equipment that ranges from paint booths to engine analyzers andindustrial equipment products.7
  • 8. GROUP COMPANIESWith steady growth, expansion and diversification, today TVS commands a strongpresence in various fields-two-wheelers, automotive components, automotivespares, computer peripherals and finance. Lakshmi Auto Components Limited -Large OE supplier of two wheeler gears and camshafts. Lucas Indian ServiceLimited (www.lucasindia.com) - Company looks after the distribution of autoelectrical components all over India. Axles India Limited - A joint venture withEaton Limited, U.K. Manufactures axle housings and drive heads for heavy andlight commercial vehicles8
  • 9. COMPANY AT PRESENT & IN FUTURE Successfully launched the Victor and Fiero-F 2 models after parting wayswith Suzuki.  Two wheeler markets show sign of revival after a lacklusterfirst half.  The company is suffering a decline in volumes due to poorresponse of its two strokes Max motorcycles.  Recently launched the TVSCentra and 125 cc TVS Victor GLX and four stroke Max in the pipeline, whichwould be launched later this year.  Plans major foray into three-wheeler andquadricycles market through fresh investments of Rs 500 crore.  Activelylooking to set up manufacturing unit in Indonesia or Vietnam.  Strong focuson R&D and product development.9
  • 10. Apache the SaviorTVS launched Apache RTR 160 cc model in September 2008, with its ultra moderntechnology for Indian bikes has proved to be a big success. The success of TVSApache is especially significant because it was developed with indigenoustechnology.Two stroke Max Range   On the way outThe company is currently looking forward to phase out its two stroke Max range,which is perceived to be less fuel efficient with a new four stroke range. Thechangeover is expected to take place by the end of June 2009.Two new launches could out TVS on a high growth trajectoryTVS Centra TVS Centra a new 100 cc model has recently been launched and thecompany has set ambitions targets of achieving monthly sales in the range of15000-20000 bikes per month. Also, a new upgraded 125 cc TVS Victor has beenlaunched which will improve the trajectory of the company.10
  • 11. Three wheeler project- entering a new marketTVS Motor has set the stage for entry into the three-wheeler markets with thesetting up of a new plant at Nanjangud, near Mysore in Karnataka. We understandthat the company would be targeting the sub-one ton passenger and goods carrierssegment of the market. With an investment of about Rs 50 crore in phase-1, itwill cater to both passenger and cargo segments. The total investments for thethree wheeler and four-wheeler quardricycle project are expected to be in therange of Rs 500 crore in the next two-three years. It plans to go with petrolversion of three wheelers and expects higher demand to come from B class towns.The company expects higher margin and low competition in three-wheeler businessas compared to its twowheeler business. Three wheeler sales have grown at a CAGRof 7% over the last 9 years to 2.26 lakh units FY 03, and are expected to growat the same rate for the next five years. TVS is expected to roll out its firstthree-wheeler by the end of FY05 to garner a 30% market share with around100,000 unit sales by the end of FY08.11
  • 12. Three-wheeler market scenarioThese are two main segments in the Indian passenger three -wheeler markets are:Number of seats, including driver, not exceeding 4 and maximum mass notexceeding 1 tonne. Number of seats including driver excluding 4 but notexceeding 7 max mass not exceeding 1.5 tonnes. The three-wheeler goods carriersegments are: Maximum mass not exceeding 1 tonne Others. Around 95% of thethree-wheeler sold in India belongs to the smaller vehicles category in whichBajaj Auto is the major player and has around 90% market share. The otherplayers in the segment are Atul Auto and Piaggio group, Italy. Similarly, in thethree-wheeler segment, domestic sales of the goods carrying variety grew awhopping 46.95%. This growth in 2002-03 could have possibly come from twofactors. 1) The increasing number of cities whose corporations have legislatedthat larger goods carrier, like trucks be kept out for logistics purpose. 2) Theincrease in the number of offerings in this category, especially from companiessuch as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.12
  • 13. Quardricycle-A new introduction in the Indian market There is a new challengeremerging in the Quardricycle segment. These new vehicles could impact on theentry level sales. These new vehicle could impact on the entry level sales.Quardricycles are three wheelers converted into four wheelers by using, a columnaxle. All the major three-wheeler units have prepared Quardricycles prototypes.Merger of engine components Division of Lakshmi Auto components with TVS Motor:TVS motor would merge engine component division of Lakshmi Auto Component Ltd.(LAC) and investments and other assets with itself and the dwap ratio has beenfixed at once phase of TVS motor for every seven share held as consideration forthe merger. Presently TVS motor holds 66.5% of equity capital of LAC, whichwould be cancelled. Around 66% of LAC s sales come from the engine componentsdivision, mode of which is currently being sold to TVS motor. LAC s total netsales in HI FY 04 were Rs. 69 crore and made a net profit of Rs. 10.5 crore..The Plastics and Rubber components division of LAC will be transferred to thewholly owned subsidiary company, Sundaram Auto13
  • 14. Components Ltd. The total consideration on slump   sale based is Rs. 12.25crore.Strong focus on R&DThe company has put in place a strong R & D team consisting 400 engineers & isspending about 3% of its turnover on R & D every year and has in the processsetup a strong world class facility for product design and development. During2002-03, the company applied for 16 patents & published five technical researchpapers in international conference. Modified research projects are carried inassociation with leading international research labs and Indian institutes. R &D as percentage of sales in expected to increase from 1.5% in FY o2 to 3.2% inFY 04.ValuationThe company s valuations are dependent on five events:  Current fourbusinesses grow at the normal industry growth rates.  New product launchesachieve their targets and are well accepted by the market.  Three wheelerforay achieve targeted volume in the desired rates of return on capitalemployed.  Quadricycle foray achieve the desired rate of return on thecapital employed.14
  • 15.  Overall investment returnsTVS MOTOR COMPANYTVS Motor Company Limited, part of the TVS Group, is one of Indias leading two-wheeler manufacturers. With a turnover of over Rs.2700 crores, the Companymanufactures a wide range of motorcycles, scooters, mopeds and scooterettes.Little wonder, it boasts of more than 7 million happy customers. The chaptercalled two wheelers in India begins….. The year was 1980. And it is a year toremember for the Indian twowheeler industry. For it was this year that sawIndias first two-seater moped, TVS 50, rolling out on the Indian roads. Forsome it was freedom to move. For some, shorter distances to span. For the IndianAutomobile sector, a breakthrough to be etched in history. With the jointventure with Suzuki Motor Corporation in 1983, TVSSuzuki became the first Indiancompany to introduce 100 cc IndoJapanese motorcycles in September 1984. Throughan amicable agreement the two companies parted ways in September 2001.15
  • 16. Unmatched PerformanceToday TVS Motor Company has the largest market share in the moped category witha whopping 65.3% and is also the undisputed leader in the scooterette segmentwith 34.3% share. It also holds 18.3% market share in motorcycles. Graph WideNetwork With a strong sales and service network of 500 Authorized Dealerships,1018 Authorized Service Centres and over 864 Certified Service Points, TVS isgrowing from strength to strength. World Class Facilities The companymanufactures its motorcycles, scooterettes and mopeds at its state-of-the-artfactories in Mysore and Hosur. Product Range TVS offers a wide range of two-wheelers - Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/TVS Max 100 R - Scooterettes - TVS Scooty Pep/ TVS Scooty 2S - Mopeds - TVS XLSuper/ TVS XL Super HD16
  • 17. VISIONTVS Motor - Driven by the customer TVS Motor will be responsive to customerrequirements consonant with its core competence and profitability. TVS Motorwill provide total customer satisfaction by giving the customer the rightproduct, at the right price, at the right time. TVS Motor - The Industry LeaderTVS Motor will be one among the top two two-wheeler manufacturers in India andone among the top five two-wheeler manufacturers in Asia. TVS Motor - Globaloverview TVS Motor will have profitable operations overseas especially in Asianmarkets, capitalizing on the expertise developed in the areas of manufacturing,technology and marketing. The thrust will be to achieve a significant share forinternational business in the total turnover.17
  • 18. TVS Motor - At the cutting edge TVS Motor will hone and sustain its cutting edgeof technology by constant benchmarking against international leaders. TVS Motor- Committed to Total Quality TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motorbelieves in the importance of the process. People and projects will be evaluatedboth by their end results and the process adopted. TVS Motor - The Human FactorTVS Motor believes that people make an organization and that its well-being isdependent on the commitment and growth of its people. There will be a sustainedeffort through systematic training and planning career growth to developemployees talents and enhance job satisfaction. TVS Motor will create anenabling ambience where the maximum self-actualization of every employee isachieved. TVS Motor will support and encourage the process of self-renewal inall its employees and nurture their sense of self worth.18
  • 19. TVS Motor - Responsible Corporate Citizen TVS Motor firmly believes in theintegration of Safety, Health and Environmental aspects with all businessactivities and ensures protection of employees and environment includingdevelopment of surrounding communities. TVS Motor strives for long-termrelationships of mutual trust and inter- dependence with its customers,employees, dealers and suppliers.19
  • 20. MILESTONESLaunched Centra in January 2004, a TECHNOLOGY Uncompromising Quality, TECHNOLOGYTVS Motor Companys R&D division has an imposing pool of talent and one of themost contemporary labs, capable of developing innovative designs. Committed toachieving total customer satisfaction through Total Quality Control (TQC), theCompany continuously strives to give the customer, the best value for money.ECO-FRIENDLY TVS is committed to protecting the environment. The companysmanufacturing facilities at Mysore & Hosur have state-of-the-art facilities &air pollution control measures. Even the suppliers are encouraged to ensure thattheir products meet eco-friendly norms.20
  • 21. ALWAYS FIRST- Launched TVS 50, Indias first 2-seater, 50cc moped in Aug 1980. - FirstIndian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.Launched Indias first indigenous Scooterette, TVS Scooty in June 1994. -Introduced Indias first catalytic converter enabled motorcycle, the 110ccShogun in Dec 1996. - Launched Indias first 5-speed motorcycle, the Shaolin inOct 1997. - Launched Indias first high performance moped - the XL Super, with a70 cc engine in Nov 1997. - Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle. World-class 4-stroke 100 cc motorcycle with VT-iEngines for bestin-class mileage.21
  • 22. AWARDS Deming AwardTVS Motor is the third Indian company to win the Deming Prize. Only two otherTVS companies have managed this before. Its been a long time since the Union ofJapanese Scientists and Engineers instituted the Deming Prize. But very, veryfew organizations outside Japan have had the honor of receiving it. In fact, theTVS Motor Company is the worlds first motorcycle company to be awarded theprize. As for the TVS Group, its a third. Sundaram-Clayton Ltd. (BrakesDivision) and Sundaram Brake Linings Ltd. have already won it. The Deming Prizeis the ultimate confirmation of our commitment to quality control. Aconfirmation known to every TVS rider across the country.22
  • 23. TVS Motor Company unveils TVS Centra with VTi EnginesCreates History in the Technology Frontier of the Automobile Industry in IndiaTVS Centra crosses an astounding 20,000 sales mark in 40 days Hosur, March 6,2004: TVS Motor Company today announced that the sales of TVS Centra, powered bythe indigenously developed Variable Timing Intelligent (VT-i) engine technologycrossed 20,000 units in just 40 days since its launch in mid January 2004, thebest ever clocked by any new product from the TVS Motor Company stable. Thisachievement is expected to spiral the overall growth of TVS Motorcycles sales inthe coming months. The impressive sales figures reflect the customers faith inthe technological capability of TVS Motor Company to fully live up to itspromise of delivering a world-class product at an affordable price. Due toexcellent customer feedback across the country, TVS dealers are beingpressurized with enquiries on the new 100 CC 4 Stroke Centra and itsrevolutionary VT-i engine technology. Having caught the publics imagination,TVS Centra has fully lived up to its promise of a Fill it Once a Month Bikewhere a full tank of petrol lasts for a month based on the average use ofmotorcycle customers.23
  • 24. A panel of leading auto experts in India, after having tested TVS Centra, haveendorsed the fact that it was the best in its class and also commended TVSMotor Company on its technology prowess and innovation. TVS Centra is powered byVT-i engines which are designed to deliver superb performance on fuel efficiencyand torque delivery based on three fundamental actions namely variable ignitiontiming and superior combustion of fuel, friction reduction and fuel wastagereduction. Added to its technological edge are features that include attractiveprice, fuel efficiency, low maintenance, contemporary style, ride comfort andbacked by TVS Motor Companys reliability, making it truly the preferred two-wheeler in its class. Chennai, January 5, 2004: Indias leading two wheelermajor, TVS Motor Companys commitment to produce the best technology in itsproducts for its customers has led to the launch of TVS Centra with VariableTiming intelligent engines (VT-i), a 100 CC 4 Stroke motorcycle targeted at thePopular Segment. This revolutionary new VT-i engine technology, developedindigenously by TVS Motor Company, inbuilt into TVS Centra will make it the mostfuel-efficient motorcycle in the Country. It will be rightfully called as theFill it Once a Month Bike where a full tank of24
  • 25. petrol will last for a month based on the average use of motorcycle customers.The VT-i Engines by TVS Motor Company will go down in the history of theAutomobile Industry in India as one of the most innovative technology developedindigenously. The VT-i engines are designed to deliver superb performance onfuel efficiency and torque delivery based on three fundamental actions namelyvariable ignition timing and superior combustion of fuel, friction reduction andfuel wastage reduction. This action facilitates deceleration fuel cut off,faster warm up of the Engine and has four curve ignition mapping Like all TVSMotor Company products, TVS Centra too has been engineered and designed keepingin mind extensive customer feedback and changing customer needs. TVS Centra willbe the first motorcycle in India that will bundle price, mileage, maintenance,style, reliability, power, ruggedness and ride comfort making it truly a valuefor money personal transportation two-wheeler. Those who want all theseperformance attributes in a commuter motorcycle at a great price; nothing willbeat the TVS Centra for all the advantages it offers.25
  • 26. TVS Centra is built around to give a mileage that will offer atleast 10 per centmore than any other motorcycle in the country, today. It will be powered by 7.5Brake Horse Power (Bhp) at 7250 RPM making it the most powerful motorcycle inits class. TVS Centra will also be known for its nimble handling and ridingcomfort enabling easy maneuvering even in busy city traffic. Its contemporarystyle with big muscular tank and well-rounded looks with a horizontal engine andsuperior ergonomics will mark a new standard in the popular segment of twowheelers. It will come with Econometer to keep a check on the mileage / powerratio, wide and skid free seat and Utility space..26
  • 27. TVS Motor Company posts 117,101 two wheeler sales in October 2008; Exports up by30%Hosur November 1, 2008 : TVS Motor Company has registered total two wheelersales of 117,101 units in October 2008 against 129,614 units in thecorresponding period of the previous year.This year, both the important festivals of Dussera and Deepavali were celebratedin October and consequently, placement of stocks with the dealers for thefestival season was effected in September. Restricted availability of retailfinance, high liquidity and general inflationary trends witnessed by the marketalso affected sales. However, the cumulative sales of September 2008 and October2008, show a growth of 4% when compared to the same period of the previous year.The companys motorcycle sales stood at 59,217 units in comparison with 67,752units recorded in October 2007. Scooters recorded 23,487 units as against 28,119units during the same period of the previous year .27
  • 28. During the month, the company won two prestigious IT Awards, namely the SAP ACE2008 award and the 2008 Symantec South Asia Visionary Award. While the companywon the SAP ACE Award for digitization of new product development process in SAPby implementing PLM (Product Lifecycle Management), the Symantec South AsiaVisionary Award was conferred for the way the company secured and managedsystems and information.Exports continued its upward growth trend, posting an increase of 30%;registering 17,013 units of two wheelers in October 2008 as against 13,042 unitsin the corresponding period of the previous year.TVS Motor revenues grow at 23.2% in Q2 exports up 52%Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 % increasein revenues, registering Rs. 1034 crores for the quarter ended September 2008 ofthe financial year 2008-09, when compared to Rs. 839 crores in the correspondingquarter of the previous year. Despite the challenging environment caused byincreasing input material costs, general inflationary trends and lack ofavailability of retail finance, the company has posted Profit before Tax of Rs.13.9 crores and Profit after Tax of Rs. 10.4 crores when compared to Rs. 16.9crores and Rs. 11.9 crores in the corresponding28
  • 29. period of the previous year. The last years September Quarter had the benefitof Rs. 10.2 crore (net) on account of exceptional items. Profit beforeexceptional items for the quarter is higher at Rs. 13.9 crore in comparison withRs. 6.7 crores of the corresponding quarter of last year.The company has recorded growth in sales despite adverse retail financing.Motorcycles witnessed higher sales at 1.81 lakh during the quarter compared to1.44 lakh units over the previous period. Scooters clocked sales of 0.77 lakh incomparison to 0.76 lakh units during the corresponding quarter of the previousyear.During the quarter, the company crossed yet another milestone when it reachedtwo million units of TVS Scooty in July 2008. Indian Tennis star, Sania Mirzabecame the new Brand Ambassador for the Scooty brand. The company chose toassociate with Sania as brand ambassador since she emanates the brand qualitiesof independence, progress and accomplishment.During the quarter, the company further broadened the horizons of its TVS Scootybrand with the launch of Balancing Wheels, a unique and innovative productengineered specifically for the TVS Scooty, addressing a never-before segment,who do not know how to ride, even a bicycle.29
  • 30. In June 2008, the company unveiled its feature rich TVS Apache RTR FI offeringriders the instant thrill and superior performance of a fuel injected 160ccengine. The second quarter also witnessed the commemoration of the firstanniversary of the Apache RTR brand while the company crossed yet anotherlandmark delivering the 2,50,000thApache.ExportsExports continued the upward growth path registering a total number of 0.55 lakhunits during the quarter ended September 2008, recording a growth of 52% overthe same period last year. The company has expanded its footprint to more than54 countries across the globe.Future OutlookThe global financial crisis, the consequent serious liquidity issues and higherfinancing costs are likely to impact the growth prospects of the two-wheelerindustry. Retail finance has become even more difficult. The tight liquiditywill affect the ability of dealers to stock two-wheelers. The drop in thecommodity prices, however, is a welcome break. The company will continue thevigorous implementation of its30
  • 31. improved value-engineering program to reduce costs. The company continues tomaintain the highest quality standards of all its products.SUB DIVISION OF SHARES In order to improve the shareholder value and tofacilitate greater liquidity in its equity shares, TVS Motor Company recentlysubdivided the face value of its shares to Re. 1/- each. Earlier the face valueof the shares was Rs. 10/-MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR COMPANY The Shareholders of TVSMotor Company and Lakshmi Auto Components (LAC) have on 19th January 2004approved the merger of Engine Division of LAC with TVS Motor Company andtransfer of Rubber and Plastics division of LAC to Sundaram Auto ComponentsLimited, a wholly owned subsidiary of TVS Motor Company. The company expects toobtain the approval of High Court of Tamil Nadu and complete other statutoryformalities in the next few months. This merger is expected to improve theoverall profitability of TVS Motor Company.31
  • 32. PRODUCT PROFILETVS APACHE (RTR) The recently launched TVS Apache RTR FI 160 has added ananother stunner on the roads. Stylish alloys, unique grab rails, classysilencer, larger & sharp lined fuel tank, all these elements combine perfectlyto give TVS Apache RTR 160 a sporty eye-catching looks. The Apache RTR 160 hasbeen upgraded with electronic fuel injection (EFI) and becomes Apache RTR 160Fi. The EFI technology has enabled TVS to boost peak power of this bike. TVS haspriced the new model at Rs. 65000.TVS SCOOTY PEP   First Love A sleek duo-tone body. Body colored coordinatedmirrors. A smiley headlamp. Winky indicators. Looks even better with you on it.POWER 75cc 4stroke engine to pep up your ride. A bigger, more comfortable seatfor two and strong hydraulic shock absorbers for a smoother ride.32
  • 33.  TECHNOLOGY A unique power/economy mode for extra mileage. An auto reservefuel tap. No more turning knob from main to reserve. Auto chokes for instantstarts. Every time.  SAFETY Puncture Resistant Tyres that come with a specialsealant inside, minimizing chances of a flat. A side stand alarm that beeps ifyou forget to take off the stand. Multi focal reflector headlamp and sidereflectors for enhanced visibility. Now all you need is an equally funky helmetand you  re all set to pep.33
  • 34. INTRODUCTION OF THE PROJECTSomeone has rightly said that practical knowledge is far better than classroomteaching. During this project I fully realized this and I came to know about howa consumer chooses among a varied range of products available to him. Thesubject of my study is market survey of customer buying behavior in bikes takingTVS for comparison, which has slowly but steadily evolved, from a beginner to acorporate giant earning laurels and kudos throughout. The report contains firstof all brief introduction about the company. Finally there comes datapresentation and analysis in the end of my report. I also put forward some of mysuggestion hoping that they help TVS Motor Company move a step forward to beingthe very best.34
  • 35. SCOPE OF THE STUDYThe scope of the study is to study the customer buying behavior of therespondents in New Delhi and attain the awareness level of the customers. Thescope is that the services of the dealer, advertising media as well as celebrityhas made an effect on the customer or not and how much. This study also allowsknowing the future prospects of the company and where it is at present in themarket.OBJECTIVE OF THE STUDY The objective of the study is to analyze the customer buyingbehavior of the respondents in motorbikes of different brands .  To study thefuture prospects of TVS motorbikes.  To provide a fair picture of technologyused by TVS motors.  To study the sales trends of tvs motors.  To analyzethe quality of after sales services being provided by tvs motors.35
  • 36. CHAPTER-2RESEARCH METHODOLOGYSAMPLE SIZE SAMPLE LOCATION RESEARCH TYPE DATA TYPE INSTRUMENTS36
  • 37. SAMPLE SIZE AND LOCATIONThe data has been extracted mainly from questionnaires filled up by respondentsfrom New Delhi, Noida and Ghaziabad. Rest of the information has been collectedthrough internet surveys and social networking communities on websites. Thequestionnaire was filled up by 50 respondents scattered at different places andmany more respondents provided valuable information through the internet. Theaforementioned questionnaire has been attached at the end of the project.37
  • 38. RESEARCH AND DATA TYPESThe purpose of methodology section in the report making is to describe theresearch process that is followed while doing the main part. The research designplays a pivotal role in the quality and content of the data in making of anyproject report. The type of research design chosen is seen to have a bearing onall the aspects of report writing.Research Design: Descriptive Research design The research design undertaken forthe study was Descriptive one. The reason for using a descriptive researchmethod was to obtain qualitative data and also since the nature of study is assuch that it required the exploration of various aspects within and outside thecompany. In order to carry out a well researched analysis efforts were taken tocollect enough information from the respondents. For this purpose variousprimary and secondary sources were used. This would however include the researchdesign, the sampling procedure, and the data collection method. This section isperhaps difficult to write as it would also involve some technical terms and maybe much of the audience will not be able to understand the terminology used. Themethodology followed by the researcher, during the preparation of the reportwas:38
  • 39. Source of Data Collection a) SECONDRY DATA b) PRIMARY DATASECONDRY DATA - When an investigator uses the data that has been alreadycollected by others is called secondary data. The secondary data could becollected from Journals, Reports, and various publications. The advantages ofthe secondary data can be  It is economical, both in terms of money and timespent .The researcher of the report also did the same and collected secondarydata from various internet sites like Google.com, altavista.com and many more.The researcher of the report also visited various libraries for collection ofthe introduction part.PRIMARY DATA - Primary data is that kind of data that is collected by theinvestigator himself for the purpose of the specific study. The data suchcollected is original in character. The advantage of this method of collectionis the authentic. A Set Of Questions Were Put Together In The Form OfQuestionnaire With 13 Questions. The method of sampling was the Random.39
  • 40. INSTRUMENTS for Data CollectionThe instruments used for collection of data were mainly questionnaires, internetsurveys and personal visits to the respondents.Tools Used for Analysis • Bar Diagram • Pie Diagram • Tables40
  • 41. CHAPTER-3FINDING & DISCUSSIONS41
  • 42. ANALYSIS OF CUSTOMER BUYING BEHAVIOURNEW DELHI42
  • 43. QUE-1INTERPRETATION0In this question particular question it is found that 93% of respondents arehaving motorbike and 7% are either having scooter or moped. On the basis of theabove pie-chart it is clear that more people own bike.43
  • 44. QUE-2WHICH BR90 80INTERPRETATION8727060 The above bar-graph shows the brand awareness of bikes among therespondents. In the above bar-graph it is clear that HERO HONDA is the mostpopular brand in New Delhi whereas BAJAJ and YAMAHA follow 2ndand 3 place. TVS comes at 4th place taking lead fromrd50 40 30LML, KINETIC and ENFIELD BULLET.VALUES4420
  • 45. QUE-3WHICH SLOGAN45 40INTERPRETATION40The above Bar-Graph shows that in New Delhi area HERO HONDA has scored themaximum number of points with BAJAJ and TVS on3530 2nd and 3rd spot. TVS has scored 9 points out of the sample size ofhundred and has taken lead from LML, KINETIC and ENFIELD BULLET.25 VALUES 20 1545
  • 46. QUE-4Which factors do you consider while purchasing a Bike?WHICH FACTORS DO YOU CONSIDER WHILEPURCHASING A BIKE?S ta t is tic s M IL E A G E S T Y L E V a lid 100 100 M is s in g 0 0 PO W ER100 0 P R IC E 100 0 BRAN D 100 0 SPAR E AF T ER SALE PART S S E R V IC E F IN AN C IN G 100 100 100 0 0 0NFrequency DistributionM E G IL A E F q e cy re u n V alid 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 80 .0 T ta o l 5 8 1 9 1 5 3 2 2 1 10 0 P rce t e n 5 .0 8 1 .0 9 1 .0 5 3 .0 2 .0 2 .0 1 .0 10 .0 0 V alid P rce t e n 5 .0 8 1 .0 9 1 .0 5 3 .0 2 .0 2 .0 1 .01 .0 00 C u tive um la P rce t e n 5 .0 8 7 .0 7 9 .0 2 9 .0 5 9 .0 7 9 .0 9 10.0 0SYE T L F qec re u n y V lid a 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 7 0 .0T ta o l 1 2 3 0 3 1 1 6 8 2 1 10 0 P rc n e et 1 .0 2 3 .0 0 3 .0 1 1 .0 6 8 .02 .0 1 .0 10 0 .0 V lid P rc n a e et 1 .0 2 3 .0 0 3 .0 1 1 .0 6 8 .0 2 .0 1 .010 0 .0 C m la e u u tiv P rc n e et 1 .0 2 4 .0 2 7 .0 3 8 .0 9 9 .0 7 9 .0 910 0 .046
  • 47. P WR O E F qec re u n y V lid a 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 7 0 .08 0 .0 T ta o l 2 5 2 7 1 8 9 8 5 5 3 10 0 P rc n e et 2 .0 5 2 .0 7 1 .0 8 9 .08 .0 5 .0 5 .0 3 .0 10 0 .0 V lid P rc n a e et 2 .0 5 2 .0 7 1 .0 8 9 .0 8 .0 5.0 5 .0 3 .0 10 0 .0 C m la e u u tiv P rc n e et 2 .0 5 5 .0 2 7 .0 0 7 .0 98 .0 7 9 .0 2 9 .0 7 10 0 .0P IC R E F qec re u n y V lid a 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 7 0 .0T ta o l 2 1 7 1 6 3 9 1 7 7 2 10 0 P rc n e et 2 .0 1 .0 7 1 .0 6 3 .0 9 1 .0 77 .0 2 .0 10 0 .0 V lid P rc n a e et 2 .0 1 .0 7 1 .0 6 3 .0 9 1 .0 7 7 .0 2 .010 0 .0 C m la e u u tiv P rc n e et 2 .0 1 .0 9 3 .0 5 7 .0 4 9 .0 1 9 .0 8 100 .0B A D R N F qec re u n y V lid a 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0 .0 7 0 .0 8 0 .0 T ta o l 3 1 1 2 3 3 7 1 6 9 1 10 0 P rc n e et 3 .0 1 .0 1 2 .0 3 3 .0 7 1 .06 9 .0 1 .0 10 0 .0 V lid P rc n a e et 3 .0 1 .0 1 2 .0 3 3 .0 7 1 .0 6 9 .01 .0 10 0 .0 C m la e u u tiv P rc n e et 3 .0 1 .0 4 3 .0 7 7 .0 4 9 .0 0 9 .09 10 0 .047
  • 48. S A EP R S P R A T F qu nc re e y V lid a 1 0 .0 2 0 .0 3 0 .0 4 0 .0 5 0 .0 6 0.0 7 0 .0 8 0 .0 T ta o l 1 3 5 5 8 2 8 3 5 1 5 10 0 P rce t e n 1 .0 3 .0 5 .05 .0 8 .0 2 .0 8 3 .0 5 1 .0 5 1 0.0 0 V lid P rce t a e n 1 .0 3 .0 5 .0 5 .0 8.0 28 .0 35 .0 15 .0 1 0.0 0 C u tive um la P rce t e n 1 .0 4 .0 9 .0 1 .0 42 .0 2 5 .0 0 8 .0 5 10 .0 0A T RS L S R IC F E AE E V E F qec re u n y V lid a 1 0 .0 2 0 .0 3 0 .0 4 0 .05 0 .0 6 0 .0 7 0 .0 8 0 .0 T ta o l 1 1 3 4 2 0 3 0 1 8 2 3 10 0 P rc n e et1 .0 1 .0 3 .0 4 .0 2 .0 0 3 .0 0 1 .0 8 2 .0 3 10 0 .0 V lid P rc n a e et 1 .01 .0 3 .0 4 .0 2 .0 0 3 .0 0 1 .0 8 2 .0 3 10 0 .0 C m la e u u tiv P rc n e et1 .0 2 .0 5 .0 9 .0 2 .0 9 5 .0 9 7 .0 7 10 0 .0F AC G IN N IN F qec re u n y V lid a 3 0 .0 4 0 .0 6 0 .0 7 0 .0 8 0 .0 T ta ol 1 2 1 0 3 0 5 7 10 0 P rc n e et 1 .0 2 .0 1 .0 0 3 .0 0 5 .0 7 10 0 .0 V lidP rc n a e et 1 .0 2 .0 1 .0 0 3 .0 0 5 .0 7 10 0 .0 C m la e u u tiv P rc n eet 1 .0 3 .0 1 .0 3 4 .0 3 10 0 .048
  • 49. Graphical Representation70605040302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 8.00MILEAGE49
  • 50. 40302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 7.00STYLE302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00POWER50
  • 51. 5040302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 7.00PRICE40302010Count0 2.00 3.00 4.00 5.00 6.00 7.00 8.00BRAND51
  • 52. 40302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00SPARE PARTS40302010Count0 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00AFTER SALE SERVICE52
  • 53. 605040302010Count0 3.00 4.00 6.00 7.00 8.00FINANCINGINTERPRETATION From the above mentioned tables and graphs we can see thatparameters like mileage, power and style holds an upper edge over the otherparameters which affect the purchase decision of bike. Thus customers are morelikely to see the mileage aspect before actually buying a product.53
  • 54. QUE-5WHO INFLUENC50 45INTERPRETATION40From the above graph it is clear that FAMILY plays a major role in the purchaseof bike and the 35 reference and suggestions of FRIENDS come at the secondplace. Whereas MEDIA factor comes at third25 place with DEALER making no promising affect on the purchase ofbike.30VALUE 25 2054
  • 55. QUE-6HAVE YOINTERPRETATION As shown in the above PIE CHART, the percentage of respondentswho have visited the TVS SHOWROOM is more than those respondents who have notvisited the TVS SHOWROOM. Thus the interest of customers in TVS product canrelate to 62% among 100 respondents.38%55
  • 56. QUE-7IF YES3025INTERPRETATION As shown in the above graph there are four FACTORS, which showthe experience of the respondents after visiting the TVS showroom. It is clearthat most of the respondents had GOOD experience with 22 respondents havingaverage experience. Only 8 respondents are having a bad experience, which showsthe quality of the TVS showroom.20VALUES 155610
  • 57. QUE-8IF NO, WHY YOUINTERPRETATION0%As shown in the above PIE-CHART 89% of the respondents are not interested in TVSproducts and 11% of them are not satisfied with TVS bikes. This was an openended question therefore most of the answers were in account to the satisfactionlevel and interest in the TVS BIKES.57
  • 58. QUE-9ADO YOUINTERPRETATION0%As given in the PIE CHART above 91% of the respondents know about TVS motorbikeand only 9% of the respondents are unaware about the TVS motorbike. Thisquestion is based on the awareness as well as past usage of the TVS motorbike.58
  • 59. QUE-9BIF,YES W100 100 90INTERPRETATION80As shown in the above BAR GRAPH it is clear that TVS-VICTOR is the most popularbike in New 70 as 100 respondents are aware of Delhi TVS-VICTOR. Second mostpopular bike is TVS-FIERO F-2, which is known by 35% of the respondents and hastaken lead from TVSCENTRA BY 8% which is on the 3rd spot. TVS-MAX-R is on the4th place with 26% share and has taken lead from TVS-FIERO-FX by 17%.60 50 40VALUE59
  • 60. .QUE-9CHAVE YOUINTERPRETATION In the PIE CHART given above it is clear that out of 100respondents 68% of them have visited the TVS DEALERSHIP and only 38% have notvisited the TVS DEALERSHIP. By the chart given above it makes clear that the TVSDEALERSHIP has attracted more number of respondents60
  • 61. QUE-10WHAT HAVE YO25 21INTERPRETATION20As shown in the BAR-GRAPH it is clear that 21% of the respondents are notsatisfied with the service facilities and 20% are satisfied with the servicefacilities which comes to equal ratio.10% of the respondents liked the staff and4% are not satisfied with the staff. 15 Interesting part is that 7% of therespondents wanted more space at the TVS-DEALERSHIP.VALUE 1061
  • 62. QUE-11DOES CELEBRITINTERPRETATIONIn the given PIE CHART 66% of the respondents have no affect with the celebrityendorsement during the purchase of the bike. Whereas 34% of the respondentsagreed that celebrity endorsement do make an effect on the purchase decision ofthe bike.62
  • 63. QUE-12WHICH BRAND50 45INTERPRETATION48As shown in the BAR DIAGRAM it40 is clear that HERO HONDA is the most popularbike in New Delhi with BAJAJ taking the 2nd place with 32%. TVS is the 3rd mostpopular bike in New Delhi taking lead 35 from YAMAHA, BULLET, LML and KINETIC.3030 VALUE 25 2063
  • 64. QUE-13IF THERE IS N40 36INTERPRETATION35 28In the BAR-CHART it is clear that with no price consideration HERO 30 Honda willbe the first choice following with BAJAJ and ENFIELD BULLET as 2nd and 3rdchoice. Whereas TVS will be the 4th choice which is taking lead over YAMAHA, LMLand KINETIC as 5th, 6th 25 and 7th choice.VALUES 20 1564
  • 65. CHAPTER-4 RECOMMENDATIONS LIMITATIONSSUMMARY AND CONCLUSIONS65
  • 66. RECOMMENDATIONSIn the analysis the respondents have shown that they consider TVS motor companyafter HERO HONDA and BAJAJ and this is a major concern for the company. TVSmotor company has to make some arrangements to increase the awareness levelamong the prospects through media. The company should also emphasize on otherbikes excluding TVS VICTOR and TVS CENTRA because some of the bikes in TVS likeApache RTR are more popular than these bikes in the surveyed area. In New Delhithe respondents who have visited the dealership are not satisfied with theservice facilities which can be improved by regular visit of the servicemanagers as well as providing regular training to the staff as well as theowner. The dealership in New Delhi also lacks in space, which is a major concernbecause the first impression on the mind of the customer is about the windowdisplay, which can be improved with the help of the professionals. The buyingbehavior of the customers in New Delhi is not focused on the celebrityendorsement but they want a product which should contain all the factors and atan affordable price. The customers in New Delhi want more number of dealers intheir area so as to have more options in visiting the dealership. Every66
  • 67. dealership should have the same services and excellent window display so as toattract more customers. As in the demographic phase of the respondents theyounger generation wants to have a bike with lot of power and style which TVSshould come within future .As TVS has launched its new bike VICTOR GLX in themarket. TVS should improve its channel management and should invest in the brandimage in the market.LIMITATIONSThis report incorporates sincere efforts to submit the best possible dossier onthe topic assigned because no study can be perfect. There are bound to belimitations that I faced and within which I had to work. The data used in mostpart of the report is secondary data, it has inherent discrepancy. As TVS isstill not a household brand name, some of the respondents were not completelyaware of its products and track record.67
  • 68. SUMMARYEver since man evolved into social animal he felt the need for Transportation . As he formed a civilization he felt the need for  BetterTransportation . Today on the threshold of exploring the universe he feels theneed of  Best Transportation . Truly the modern world relies ontransportation which can be airways, roadways, railways and on water. Bicyclewas the most important part of road transportation in early days and as thescenario changed bicycle was transformed into a fast, stylish and trendy mode oftransport known as Motorcycle nowadays known as Motorbike. Each human being thatis living in this social world knows the importance of bikes because it servesthe purpose in any kind of situation and in any part of this world. The topic ofthe project is Customer Buying Behavior taking TVS for comparison. TVS motorcompany is one of the leading bike manufacturers in India. The analysis of theproject was based on customer s point of view. For the study, both primarydata and secondary data were required. The primary data was collected68
  • 69. based on a survey research, using a structured questionnaire with both openended and closed-ended questions.The sampling procedure used was random sampling for the 1st objective i.e. tounderstand consumer needs on motorbikes. For the 2nd objective i.e. tounderstand the awareness levels of TVS I went to the prospects and met therespondents to fill the questionnaire. The mode of survey was of personalinterview, where the respondents filled up the questionnaires. The secondarydata was collected from business newspapers, magazines, Company brochures,journals and the Internet. The major conclusion from this study was that TVS hasto improve itself to gain the 1st position in the market as it is doing well tomaintain its 3rd position in the market. In terms of competition TVS has neck-to-neck competition with Hero Honda and Bajaj. TVS has a lot of work to do if ithas to take lead and remain the leading manufacturer in India.69
  • 70. CONCLUSION The facts and figures shown in the analysis is correct and the survey hasbeen done in a good faith and responsibilityAs HERO HONDA, BAJAJ and YAMAHA have taken the 1st, 2nd and 3rd position. ThusTVS motor co. has to make some more efforts to increase the awareness among thepeople in the context of bikes. The respondents have been asked about the most effective slogan in differentbrands of bikes in which again HONDA and BAJAJ have taken the lead. TVS motorco. has emphasized only on VICTOR and not on other bikes, thus people only knowabout VICTOR and not other bikes. Print media and different types of mediashould be used to make people know about the slogan.  The respondents in thefactors, which they consider while purchasing a bike, have done the ranking.MILEAGE is the first factor following with POWER and STYLE and also with anadaptable PRICE. The company has to make efforts for making a product thatshould have all these three factors with considerable price.70
  • 71.  The most influencing factor in purchasing decision of the bike is FAMILY andafter that FRIENDS which is not at all linked with the company investment. Thecompany generally invests in Dealer promotion and Media, which is notappropriate as analyzed in this question. Awareness level through Media anddealer should be increased.  When asked about the experience at the TVSdealership most of the respondents had a good and average experience with asmall number having bad experience. The small number of bad experience can beavoided by giving warm welcome and good behavior by the staff.The respondents who have not visited the TVS dealership are either notinterested in TVS bikes or they are not satisfied with TVS products. In thismatter the dealer should increase the road shows as well as arrange regularcustomers meeting which will create interests in other prospects. Most of the respondents had knowledge about the TVS bikes, which is a goodsign for the TVS motor company.In TVS motor company VICTOR is the most popular bike and very interestinglywithout any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the3rd spot which has taken a lead with only one place from MAX-R .It isrecommended that FIERO F2 should be given equal sales promotion than71
  • 72. CENTRA because of its popularity has come through people network and not throughchannel media. The respondents have liked the service facility and the staff but theimportant factor is the lack of space. The dealership in New Delhi has toimprove the staff as well as the after sales services and the customerrelations.  Celebrity endorsement does not affect most of the respondentswhereas only 34% of the respondents have an affect over the purchasing decisionof bike. Company should give more importance to the product so as to give thebest in quality to the customer.  In context to popularity TVS ranks 3rdaccording to this sample size and thus the company should introduce new productsas well as reposition its product according to the demand in the market.In the case of no price consideration TVS ranks 4th and according to surveyanalysis the respondent wants to purchase his dream bike which TVS Company hasto make in comparison with HERO HONDA, BAJAJ and ENFIELD BULLET.72
  • 73. BIBLIOGRAPHY WEB SITE • Google.com,www.tvsmotor.com  TEXT BOOKS•Marketing Research, Test and cases, Richard D. Irwin, Linois C.R Kothari,Research Methodology• NEWS PAPER • Times Auto • The Economic Times  MAGAZINES • AutoSports • Business Outlook73
  • 74. TVS MOTOR COMPANYCUSTOMER BUYING BEHAVIOUR (NEW DELHI) QUESTIONNAIREQue1. Do you own a Bike?Yes  No  If yes, which Bike do you have? Specify__________________________________Que2. Which brands of Bike are you aware of……..?TVS HERO HONDA ENFIELD YAMAHA BAJAJ LML KINETIC      74
  • 75. Que3. Which slogan of Bike affects you the most and of whichbrand…? Specify___________________________________Que4. Which factors do you consider while purchasing aBike? [Rank] MILEAGE STYLE PRICE BRAND SPARE PARTS AFTER SALE SERVICEQue5. Who influenced you while purchasing the Bike?     FRIENDS DEALER FAMILY MEDIAQue6. Have You Visited Any TVS Showroom?   Yes No 75
  • 76. Que7. If yes, what was the Experience?VERY GOOD GOOD AVERAGE BAD   Que8. If No, why you have not visited the TVS Showroom?Please Specify______________________________Que9. If you have a Motorcycle other than TVS?Do you know about TVS Motor bike? Yes  No If yes which Brand of TVS Motor bike? Specify___________________________________ Have you visited TVS DEALERSHIP? Yes  No76
  • 77. Que10.What have you liked OR Disliked at TVSDEALERSHIP? Specify____________________________________Que11. Does celebrity endorsement affect the purchase ofBike? Yes  No Que12. Which brand do you think is most popular in theMarket? Specify___________________________________Que13. If there is no price consideration which brand wouldyou buy? Specify___________________________________ THANKS A LOT FORPARTICIPATING!! NAME ………………………………………………..AGE……………………………………………………SEX…………………………………………………….77
  • 78. OCCUPATION……………………………………….INCOME……………………………………………… PHONE NO.………………………………………….ADDRESS…………………………………………….………………………………………………………… SIGNATURE:78