Tvs scooty


Published on

Published in: Automotive, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Tvs scooty

  1. 1. TVS SCOOTYBRAND MANGEMENTGROUP ASSIGNMENT By- Jayesh Singh (2011193) Sudhanshu Sharma(2011199) Uplaksh Gupta(2011211) Vasundhara Singh(2011222) Yugmala Singh(2011238)
  2. 2. TVS SCOOTYIntroductionThe Indian two-wheeler industry has come long way since its humble beginning in 1948 whenBajaj Auto started importing and selling Vespa Scooters in India.Since then, the customer preferences have changed in favour of motorcycles and gearlessscooterettes that score higher on technology, fuel economy and aesthetic appeal, at the expenseof metal-bodied geared scooters and mopeds.These changes in customer preferences have had an impact on fortunes of the players. Theerstwhile leaders have either perished or have significantly lost market share, whereas newleaders have emerged.If the metal bodied scooters have fallen out of the consumers choice, scooterettes have beenclimbing up the popularity charts lately. These set of two wheelers are a hit among people overthe age group of 45, women and the young adults.These two wheelers are lighter which makes them easier to handle, they come with a digitalignition system to do away with the inconvenience of the kick start. They also have smallerwheels for better balance and maneuverability. They cater to the load carrying and personaltransport requirement of most urban two wheeler user. Scooterettes and moped segment amountfor a quarter of the two wheeler market share in India and about 8% of all the exports whichtakes place from the country.One company which has remained in the forefront of scooterettes and mopeds manufacturing inthe country is TV Sundram Iyengar and Sons Limited (TVS), they were the first to launch anindigenous scooterettes in the Sub 100 cc category in the year 1984. Incidentally the companyhad also launched a two-seater 50 cc moped in the year 1980.Scooty is an Indian brand of Scooters manufactured by TVS Motors. Designed for women,Scooty is the largest selling Scooter brand in its segment. It has come to represent a genericname for any womens two-wheeler in India.
  3. 3. Demand for Two WheelersThe demand for two-wheelers has been influenced by a number of factors over the past fiveyears. The key demand drivers for the growth of the two-wheeler industry are as follows: • Inadequate public transportation system, especially in the semi-urban and rural areas. • Increased availability of cheap consumer financing in the past 3-4 years. • Increasing availability of fuel-efficient and low-maintenance models. • Increasing urbanization, which creates a need for personal transportation. • Changes in the demographic profile. • Difference between two-wheeler and passenger car prices, which makes two-wheelers the entry level vehicle. • Steady increase in per capita income over the past five years. • Increasing number of models with different features to satisfy diverse consumer needs. TARGET MARKETBasis of segmentation Target segmentsAge Youngsters 15-25 yrsIncome Middle income groupProfession Students, young working women.Lifestyle Modern and IndependentGeographic area Urban and semi urbanBenefit Quality and economy HISTORY OF TVS SCOOTY
  4. 4. Scooty was initially conceived of as a Scooter for both sexes. However sales figures over thefirst two years indicated that more women were buying the Scooty than men. In 1996, Scootywent through a repositioning exercise to target women. Though it was seen as a risk with thelarge majority of Indian two-wheeler riders being male, TVS chose the strategy to tap the nascentsegment of women riders. Over the last decade, Scooty has launched several models that cater todifferent segments of the market. These include the Scooty ES (1996), the Scooty Pep (2003)and Pep+ (2005), Scooty Teenz (2007) and Scooty Streak (2009).Models And FeaturesDomestic Range  Scooty Streak  Scooty pep  Scooty Pep+  Scooty Teenz and Teenz ElectricScooty Streak • Launched in March 2009, the TVS Scooty Streak features LED tail lamps, external fuel filling and an easy-to-use center stand: making it specifically designed for the young woman. It has 90mm wide anti-skid tyres fashioned from wet compound giving it stronger grip in wet weather driving. Indian tennis player endorsed the brand and has appeared in several commercials around the model.
  5. 5. Scooty Teenz and Teenz Electric • The Scooty Teenz has also been released in the electric edition that is designed specifically for young women who travel short distances.Scooty Pep • 74.6 cc 4 stroke single cylinder air-cooled engine. • Maximum power -3.0 kw @ 6500 rpm. • Better mileage-result of auto-choke for instant start, auto reserve fuel tap and power/economy mode. • Safety and security features- side reflectors, multi reflector headlamp, puncture resistant tyre, side stand alarm etc. • Presence of hydraulic shock absorber- key factor for smoother riding. • Sleek dual tone body with complementary colored mirrors, appealing body lining and 5 different types of metallic colors. • Fuel tank capacity-5 liters.
  6. 6. Scooty Pep +Launched in 2005 Scooty Pep Plus features a light-weight body, with a choice of 99 colours. Noother scooter in the segment offers such a choice. Pink is the largest selling colour. At varioustimes, Bollywood actresses Preity Zinta and Minissha Lamba have endorsed the brand. • 90 cc 4 stroke single cylinder air cooled engine. • Available in 99 colours. • Max power rose to 5 bhp @ 6500 rpm. • Mileage - 60kmplSpecial Limited Editions • In July 2006 Scooty launched the limited edition Fashion Series with the Perky Pink model that featured a shade-tested hot pink colour believed to be the rage amongst the target segment of 16- to 24-year-old girls. With Preity Zinta as its face, the campaign spoke of thoughtful accessories such as the glow-ring around the key-hole, lit luggage compartment and the mobile charger socket. • Scooty launched a limited edition series to coincide with the start of the 2008 Wimbledon Championships. TVS entered into an agreement with the All England Lawn Tennis and Croquet Club to be an official licensee and launched two variants, the Wimbledon Class and the Wimbledon Xtreme bikes. Designed to be a tribute to women with a sporty attitude, the Class featured white, purple and green flow strokes while the Xtreme came in red with graffiti art.
  7. 7. GEOGRAPHICAL PRICING City Base Price Ex-Showroom Estimated On Road Price Delhi 32,520 36,585 36,585 Chennai 30,436 34,240 37,896 Kolkata 30,782 34,630 39,980 Mumbai 32,011 36,012 41,010 BRAND STRATEGYFrom TVS Scooty ES to Scooty Pep and then scooty Pep to Scooty Pep plus, is a line extensionbranding strategy of TVS. Since there are a host of enhancements in terms of style, design,colours and features, from the old Scooty Pep model it has been renamed to Scooty Pep Plus.Promotion Strategies:-
  8. 8. Celebrity endorsement- Earlier Preity Zinta used to endorse the brand. Now TVS has hiredAnushka Sharma as their Brand Ambassador. Thus, a celebrity with a peppy image is beingchosen.Advertising:  Print ads  TV commercials  Hoardings  Internet adsPublic RelationsWomen on WheelsTVS Scooty embarked on a project to provide two-wheeler riding training to women acrosssmall and large towns in India with a view to building the habit of riding in what is considered alow-penetration segment: less than 2% of Indian women in the potential two-wheeler buyingcategory of 15-60 year olds actually buy a scooter. Rechristened the TVS Scooty Institute, “Women on Wheels (WOW) Institute” to train thewomen riders to drive. 80 centers have been set up and 42,000 women have been trained to ridea two-wheeler. About 20% of women trained at the institute buy the TVS Scooty. This campaignhas won several awards, notably amongst them the EMVIE by the Ad Club Bombay for beingthe best campaign innovation. If you are at the age of 16 or above you can join this institute.TVS charges Rs350 for this.CSR : Environmental Impact
  9. 9. TVS Motors entered the segment in April 2008 with the brand Scooty Teenz Electric,an ungeared scooter powered by an 800 Watt motor running on a lead–acid battery. The TeenzElectric can carry a load of 130 kg with a pillion rider, up to a distance of 40 km on a singlecharge. Recognizing special needs of the young Indian woman on the road Scooty Teenz Electricincorporates design elements such as large utility and storage spaces, a mobile phone charger anda low battery charge indicator.TVS Scooty Broadens Horizons with Balancing WheelsTVS Motor Company has broadened the horizons of its TVS Scooty brand with the launch ofBalancing Wheels, a unique and innovative product that can be easily fitted on to the Scooty.For the first time in the history of the two-wheeler industry, the company will be addressing anever-before segment, those who do not know how to ride, even a bicycle. CAMPAIGNSTVS Scooty keeps on modifying its ads according to the new variants its launches:-
  10. 10. SALES AND DISTRIBUTION NETWORKTVS Motor Company has one of the most extensive networks with over 500 dealers and 2500customer touch points. All the dealers are connected through the extended network of SAP,ensuring operational efficiency Dealership in NagpurThere are 4 dealers in Nagpur.Promotion activities used- • Demo van activity • Discounts: generally they do not provide discounts, • Display Van unless directed by the • Events Company to do the same for promotional activities. • Radio city: contest 91.1 Example TVS scooties FM. Super Singer Contest were given to Maharashtra : “ Agar awaz mein ho Board Toppers. dum , toh aapki life bana denge hum” SCHEMES:- • Gift hampers (TVS avoids Direct cash discounts)
  11. 11. • BTS SCHEME (from Company): 5 years for selected customers, free servicing. • Extended Warranty for 3 years to 5 years.Few Facts from Nagpur Dealers- • Maximum sales of TVS scooty occur during the Diwali period followed by Dussehra and Gudi Padwa. • WEGO AND SCOOTY PEP+ are the highest grosser in terms of sales among its variants. • TVS Scooty used mostly Print Ad’s like in Newspapers, Banners etc in comparison to TVCsLoan Mela exchange Scooty BazaarLoans: • TVS funds loans also and have tie-ups with HDFC , ICICI , IndusInd Bank. • In the month of July, 102 sales were made through cash while 42 through loans. In June , 91 were made through cash whereas 49 were through loans( Data for Nagpur area only)Consumers give priority to the following- • Mileage • Cost of Vehicle • Brand • CC
  12. 12. • Availability of Test Drive • Looks and Colors: these days’ consumers give low priority to this and more to mileage as the petrol costs have shot up drastically.How dealerships view TVS-TVS is viewed as a company which is very customer oriented, with theirown service centers authorized by dealers. Also the first 3 servicing are free.There are always 2 company representatives present at the dealerships thatgive reports back to the company, and are very attentive towards both theconsumers and the dealers. RECOMMENDATIONS FOR THE BRAND • TVC’s must be aired more frequently as their competitors are constantly doing so. Thus , Television Commercials should be focused upon • Print ads are currently more in Hindi and other regional languages. English print ads’ frequency should be increased. • In their Ad’s they should focus more on the advantages and features • Brand positioning should become more clear • Expansion into the rural market requires an image makeover • The current target customers are very narrow they can be increased with a brand image makeover to encompass more customers to increase their customer base. • Introducing safety features can help command a premium
  13. 13. STRATEGIC PLAN• The brand is attempting a makeover to woo the young Indian consumer. In that process, the brand changed its entire persona to cater to the new target segment. The change in the brand personality of Scooty also reflects its change in its targeting strategy. The brand is now targeting much younger consumers. Earlier, Scooty was targeting lady consumers who were looking for a personal transport to office/college. The brands initial communication was catered to young women who just started going to office. The message of successful independent women was the positioning platform adopted by the brand. The brand also tried to ladder up using “Empowerment “as the core value.• Last year, the brand went in for a complete makeover. The brand has become much younger, colorful and naughty. This was a drastic change from the earlier positioning based on style and power. The brand also rationalized its portfolio to three sub-brands - Scooty Pep, Scooty Teenz and Scooty Streak.Recommendation 1:TVS Scooty should concentrate on improving its distribution networkRationalWe see that TVS Scooty is the one of the highest in reputation andconnection. This means that consumers have very high esteem towards TVSas compared to its competitors also they connect more to TVS than SuzukiAccess/Honda Pleasure. This indicates given a choice maximum consumerswould buy TVS Scooty. However, the momentum of TVS is the least. This
  14. 14. strongly indicated that there are some problems regarding the distributionnetwork of TVS Scooty.Recommendation 2:Scooty needs a presence in the higher engine capacity scooters to counterPleasure. It cannot use Wego to counter Pleasure since Wego is a unisexscooter. Pleasure has been very aggressive in its promotions and will becreating a big chunk in the Scootys existing customer base. The issue ismuch deeper that cannot be handled with high decibel ads or celebrityendorsements. Scooty has to see whether the entire category of ladiesscooter is shifting towards higher engine capacity ones. Of course there willbe a market for less powered scooters but that will be much smaller andunprofitable in future.Recommendation 3:TVS Scooty needs to stick to one brand ambassador for some time. Since theinception of the brand TVS has changed the brand ambassador 4th time andhave now settled with Anushka Sharma. Earlier they had roped in ManishaLammba, Preity Zinta and Trisha. I takes time for people to reconnect brandwith the new celebrity. So, selecting an accurate celebrity and giving thecelebrity and the commercial attached to it time on the Ads arena would helpthe brand in boosting itself.Recommendation 4:This category is nonexistent in the semi urban and rural markets. Take TVSScooty to these markets as these markets are gaining potential to make spacein the market cap of scooter industry. It will be a tough call and in the currentconditions, it may not be possible also. The possible competition is fromelectric scooters and second hand Maruti cars. If they can make a great
  15. 15. marketing campaign to get their vehicle sold in the semi-urban areas then itwould make the product back to the top of the mountain ahead of everycompetitor exist in the market?Recommendation 5:Another issue for the brand is to sustain the value proposition for Scooty.Scooty is priced around Rs 32000 which is a premium. It is walking on thethin red line between benefit and cost. The price -value proposition will bebiggest challenge for this brand. Having a no frill low cost Scooty has to bethere to keep away the treat from the price warriors. Price sensitivecostumers can shy away from the product if this matter is not takenseriously.