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Summer internship Report(TVS) by Bhargava Sai Kumar

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Summer internship Report(TVS) by Bhargava Sai Kumar

  1. 1. 11 COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER A Training report submitted in the part fulfillment of the requirements for the award of “Post Graduate Diploma in Management” Year 2014-2016 Project Mentor Industry mentor Prof. R.J. Masilamani J. Naresh Kumar BIMTECH, Greater Noida Sales manager, Vijayawada Territory, TVS motors An effort by – Bhargava SaiKumar Sudikonda-14DM059
  2. 2. [Type text] Page 2 SUMMER PROJECT CERTIFICATE This is to certify that Mr. Bhargava SaiKumar Sudikonda, Roll No. 14DM059, a student of PGDM (Marketing), BIMTECH, has worked on a summer project titled “COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” at TVS motor company Limited after Trimester-III in partial fulfillment of the requirement for the Post Graduate Diploma in Management program. This is his original work to the best of my knowledge. Date: ----------------------------------------- (Prof. RJ Masilamani) BIMTECH SEAL
  3. 3. [Type text] Page 3 ACKNOWLEDGEMENT I would like to gratefully acknowledge my thanks to all the people who took active part in my active part and provided valuable support to me during the course of this project. To begin with, I would like to acknowledge my sincere thanks to “J. Naresh Kumar, Territory Sales Manager (AMD) – Vijayawada” for providing me the opportunity to do my summer training at “TVS Motor Company”. Without their guidance, support, and valuable suggestions during the research, the project would not have been accomplished. My heartfelt gratitude also goes to Mr. Sandeep Chukkala and Mr. Rajesh Babu for their co- operation and willingness to answer my queries, which made the project possible. I also sincerely thank “Prof. R. J. Masilamani, PGDM-IIMA”, my faculty mentor at BIMTECH, who provided valuable suggestions, shared his rich corporate experience, and helped me script the exact requisites. Last, but not the least, I would like to thank Kusulava TVS, dealer of TVS Motor Company for sharing their experience and giving their valuable time to me during the course of my project.
  4. 4. [Type text] Page 4 LETTER OF TRANSMITTAL Birla Institute of Management Technology Plot no. 5, Knowledge Park-II, Institutional Area, Greater Noida (NCR), U.P-201306, INDIA Date: Mr. J. Naresh Kumar, TVS Motor Company Pvt. Ltd Vijayawada. Dear Sir, Re: Summer Project Report Attached herewith is a copy of my summer-project report “COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” which I am submitting in order to mark the completion of an 8-week summer project at your organization. This report was prepared by me using the best of practices and summarizes the work performed on the project and is being submitted in partial fulfilment of the requirements for award of diploma. I would like to mention that the overall experience with the organization was very good, and helped me to know how work is carried out in real practice with the help of your esteemed organization. I feel honoured that I got an opportunity to work with TVS Motor Company, a company of great repute. I hope I did justice to the project and added some value to the organization. Suggestions/comments would be appreciated. Yours truly, Bhargava SaiKumar Sudikonda
  5. 5. [Type text] Page 5 LETTER OF AUTHORIZATION I, Bhargava SaiKumar Sudikonda, a student of Birla Institute of Management Technology (BIMTECH), hereby declare that I have worked on a project titled “COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” during summer internship at TVS Motor Company, in partial fulfilment of the requirement for the Post Graduate Diploma in Management program. I guarantee/underwrite my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure. My learning experience at TVS Motor Company, under the guidance of J. Naresh Kumar, Territory Sales Manager, and Prof. R. J. Masilamani, PGDM-IIMA, has been truly enriching. Date: _______________ (Bhargava Sai Kumar Sudikonda)
  6. 6. [Type text] Page 6 TABLE OF CONTENTS S.No. SUBJECT PAGE No. CHAP 1 EXECUTIVE SUMMARY 13 1.1 PROJECT TITLE 13 1.2 COMPANY NAME 13 1.3 OBJECTIVE 13 1.4 SCOPE 13 1.5 METHODOLOGY 13 1.6 KEY FINDINGS 14 1.7 RECOMMENDATIONS 14 1.8 IMPLEMENTATIONS 14 CHAP2 INTRODUCTION 15 2.1 OVERVIEW OF TWO WHEELER INDUSTRY 15 2.2 EVOLUTION OF TWO WHEELER INDUSTRY IN INDIA 15 2.3 MARKET SHARE OF TWO WHEELERS IN INDIA 16 2.4 CURRENT MARKET 17 2.5 SCOOTER SEGMENT 17 2.6 SCOOTER SALES IN VIJAYAWADA TERRITORY 18 2.7 TVS MOTOR COMPANY 19 2.8 MILE STONES 19 CHAP3 PROBLEM DEFINITION 24 CHAP4 APPROACH TO THE PROBLEM 25 CHAP5 RESEARCH METHODOLOGY 26 5.1 RESEARCH DESIGN 26 5.2 DATA COLLECTION FROM SECONDARY SOURCE 26 5.3 DATA COLLECTION FROM PRIMARY SOURCE 26 CHAP6 DATA ANALYSIS 27 6.1 ANALYSIS OF MYSTERY SHOPPING 27 6.2 JUPITER NON CONSIDERATION SURVEY 30 6.2.1 ANALYSIS OF RESPONSES FROM VIJAYAWADA CITY 30 6.2.2 ANALYSIS OF RESPONSES FROM GUNTUR CITY 35 6.3 STUDY ON RESALE MARKET FOR SCOOTERS WITH FOCUS ON TVS VEHICLES 38 CHAP7 RESULTS AND CONCLUSION 39 7.1 CONCLUSION 39 7.2 RESULT 39 CHAP8 LIMITATIONS AND CAVEATS 50 CHAP9 RECOMMENDATIONS 51 CHAP10 LIST OF EXHIBITS 52 10.1 QUESTIONNAIRE 52 10.2 PICTURES OF 1ST SUMMER CARNIVAL 53 10.3 PICTURES OF 2ND SUMMER CARNIVAL 54 10.4 MARKETING ACTIVITY AT VIJAYAWADA 55 10.5 MARKETING ACTIVITY AT GUNTUR 56 CHAP11 REFERENCES 57 CHAP12 GLOSSARY OF ABBREVIATIONS 58
  7. 7. [Type text] Page 7 LIST OF TABLES TABLE DETAILS PAGE 1 Milestones ofTVS 20 2 TVS Product classification 21 3 Price list of TVS & its competitor products 22 4 Attributes considered for Mystery Shopping 25 5 Attributes considered for Mystery Shopping 27
  8. 8. [Type text] Page 8 LIST OF CHARTS CHART DETAILS PAGE 1 Market share of Automobiles in the year 2014-15 16 2 Scooter market in 2013 vs 2014 18 3 TVS Product classification 21
  9. 9. [Type text] Page 9 LIST OF GRAPHS GRAPH DETAILS PAGE 1 Sales report of two wheeler companies 17 2 Market share of Activa and Jupiter in Vijayawada Territory 18 3 Average rating of all showrooms in Vijayawada 28 4 Comparison between Vijayawada Industry and TVS showroom in Vijayawada 28 5 Average rating of all showrooms in Guntur 29 6 Comparison between Guntur Industry and TVS showroom in Guntur 29 7 Comparison between Age and reason for buying Activa 30 8 Comparison between Age and difference between Activa and Jupiter 30 9 Comparison between Previous vehicle used and occupation 31 10 Comparison between mode of payment and occupation 31 11 Comparison between Resale value used and occupation 32 12 Comparison between previous vehicle used and main reason for buying Activa 32 13 Comparison between mode of payment and annual income 33 14 Comparison between considering resale value while purchasing and annual income 33 15 Comparison between showroom visitors and showroom Ambience 34 16 Comparison between showroom visitors and showroom knowledge 34 17 Comparison between previous vehicle used and occupation 35 18 Comparison between annual income and occupation 35 19 Comparison between Annual income and previous vehicle used 36 20 Comparison between Reason for buying Activa and previous vehicle used 36 21 Comparison between showroom visitors and showroom ambience 37 22 Comparison between showroom visitors and showroom ambience 37 23 Gender statistics of Vijayawada survey 39 24 Age statistics of Vijayawada survey 40 25 Occupation statistics of Vijayawada survey 40 26 Previous vehicle used statistics of Vijayawada survey 41 27 Annual Income statistics of Vijayawada survey 41 28 Response for most seen vehicle in Vijayawada Survey 42 29 Response for main reason for buying Activa in Vijayawada Survey 42 30 Response for visiting TVS showroom and considered Jupiter before buying Activa in Vijayawada Survey 43
  10. 10. [Type text] Page 10 31 Response for main difference between Activa and Jupiter in Vijayawada survey 43 32 Response for recommending Activa in Vijayawada survey 44 33 Gender statistics of Guntur survey 45 34 Age statistics of Guntur survey 45 35 Occupation statistics of Guntur survey 46 36 Previous vehicle used statistics of Guntur survey 46 37 Annual Income statistics of Guntur survey 46 38 Response for most seen vehicle in Guntur Survey 47 39 Response for main reason for buying Activa in Guntur Survey 47 40 Response for visiting TVS showroom and considered Jupiter before buying Activa in Guntur Survey 48 41 Response for main difference between Activa and Jupiter in Guntur survey 48 42 Response for recommending Activa in Guntur survey 49
  11. 11. [Type text] Page 11 LIST OF EXHIBITS EXHIBIT DETAILS PAGE 1 Questionnaires used for survey 52 2 Marketing Activity in Guntur 53 3 Marketing Activity in Vijayawada 54 4 1st carnival in Vijayawada 55 5 2nd carnival in Vijayawada 56
  12. 12. [Type text] Page 12 CHAPTER -1 EXECUTIVE SUMMARY 1.1Project Title: “COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER”. 1.2 Company Name: TVS Motor Company Limited. 1.3 Objective: The objective of the project is to make recommendations for increasing sale of TVS Jupiter in Vijayawada and Guntur regions. 1.4 Scope: Understanding the behavior of scooter customers and the factors they considered as the most important while making their purchase decision. The study was done in Vijayawada and Guntur regions. 1.5 Methodology Adopted: The data required to measure and understand the competitors is collected using MYSTERY SHOPPING and SURVEY METHOD. 1.6 Key Findings:  TVS has low brand image in the minds of customer. Honda and Hero are considered major brands.  Awareness of TVS Jupiter is less compared to its competitor Honda Activa. Very few people know about Jupiter and its features.  Sales executives have limited knowledge about their competitor products.  TVS is focusing on a push strategy rather than pull.  Showroom ambience plays a major role in retaining customer. 1.7 Recommendations:  Impart knowledge to sales executives on competitor products.  There is no more belief that scooter segment is for women, it is better to have both men and women sales executives for scooter segment.  Sales executives should do regular follow up with customers and get feedback as also provide help where needed either through expediting After Sales Service or providing advice where asked for.  Proper recruiting of sales executives will have a great positive impact on sale of TVS products.
  13. 13. [Type text] Page 13  Run Customer Reward Programs like giving offers to existing TVS customers.  Proper enquiry quotation should be maintained.  Adequate availability of spare parts should be ensured at reasonable prices. 1.8 IMPLEMENTATIONS:  Enquiry & Quotation form is implemented for customers at TVS showrooms in Vijayawada territory.  Jupiter key chains were distributed as a part of promotional activity to increase awareness.  Training classes were conducted to sales executives on competitor products.  Post sale feedback (PSF) is going to be implemented.
  14. 14. [Type text] Page 14 CHAPTER-2 INTRODUCTION 2.1 Overview of the Indian Two Wheeler Industry: Automobiles constitute one of the largest industries in the global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as a driver of economic growth. In the last few years steps like abolition of licensing and various initiatives have been taken to bring the policy framework in accordance with the WTO requirements to set the industry on a progressive track. Removal of trade restrictions has helped in restructuring the industry and to absorb new technologies. This has also led to intense competition and also on the positive side advancement in technology and better product features. 2.2 Evolution of Two-Wheeler Industry in India: The two-wheeler segment is one of the most important components of the automobile sector and has undergone significant changes due to shifts in the trade policies in the last two decades. The two-wheeler industry has been in existence in the country since 1955.The two-wheeler market was opened for foreign companies in the mid 1980’s which led to an increase in the number of brands competing and hence the advancement in the features at competitive prices. Indian two- wheeler industry has seen spectacular growth in recent years. Presently, India is the second largest producer and manufacturer of two wheelers in the world.It consists of three segments: scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 76 per cent during 2010-11. The high percentage is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology along-with all critical areas of functioning of an industry were effectively controlled by the State machinery. However, some major set of reforms launched in the year 1991 in response to the macroeconomic crisis faced by the economy shifted the policies from a regime of regulation and tight control to a more liberalised and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the: 1) Weaker players perished giving way to the new entrants and superior products and 2) Increase in number of brands that entered the market which forced the firms to compete on the basis of product features. I believe that the scope of growth in the 2 wheeler industry is lucrative in future because of the following reasons:
  15. 15. [Type text] Page 15  There are limited players to enjoy growth. About 95% of the market share is shared amongst four players of which three are Indian companies (Hero, Bajaj and TVS) the fourth is Honda.  Rising income levels of people is also a favorable indication.  About 70% of India’s population is between 15 to 50 age group. As this age group comprises bulk of working class so this age group can be of vital importance in deciding the future of the 2 wheeler segment and the economy as well.  Rural India accounts for more than 60% of total population of India so this presents a major opportunity for the 2 wheeler companies.  There is a considerable difference between two wheelers and car prices that makes two wheelers the obvious choice for majority of people. 2.3 Market share of two wheelers in Automobile industry in India: According to the latest data by SIAM the total sales of two-wheeler accounts for about 81% of the total vehicles sold in India, where passenger vehicle accounts for only 13% of total sales. Chart 1 Market share of Automobiles in the year 2014-15 81% 3% 13% 3% Market share of Automobile Industry in the year 2014-2015 Two wheelers passenger vehicles Commercial vehicles Three wheelers
  16. 16. [Type text] Page 16 2.4 Current Market: Company wise sale of two wheelers Hero leads the market with a market share of 41.12% followed by Honda and TVS. Graph 1 Sales report of two wheeler companies 2.5 Scooter Segment: This segment continues to grow mainly due to change in product positioning and entry of new players. As a product category, scooters have evolved from being a laggard in technology and characterised by two-stroke engines, higher emissions, and old styling. Scooters have now acquired more refined engines and contemporary styling. Product positioning has also undergone a change in the gearless scooters with low kerb weight and self-start, features that appeal to certain consumer categories like women. HMSI currently occupies the leading position in the scooters segment with a market share of 56% and drawing on its flagship brand Activa (besides Aviator and Dio). It is followed by Hero (Pleasure and Maestro) which has market share of 18% and TVS (Wego, Scooty Pep+, Streak, Zest, Jupiter ), which has a market share of more than 15.2%.
  17. 17. [Type text] Page 17 Chart 2 Scooter market in 2013 vs 2014 2.6 Scooter sales in Vijayawada territory: Information regarding the scooter Industry in Vijayawada territory is collected from April 2014 to May 2015 Sale of Jupiter is less till financial year 2014 but they boosted up from April 2015 Graph 2 Market share of Activa and Jupiter in Vijayawada Territory 2014 APR 2014 MAY 2014 JUN 2104 JUL 2014 AUG 2014 SEP 2014 OCT 2014 NOV 2014 DEC 2015 JAN 2015 FEB 2015 MAR 2015 APR 2015 MAY Market share of Jupiter 3.16%4.35%5.11%4.69%6.49%4.20%7.07%5.42%4.19%5.50%4.20%5.88%7.00%8.00% Market share of Activa 47.52 50% 52% 63% 64% 57% 64% 66% 72% 58% 64% 64% 37% 58% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% AxisTitle Market share of Activa and Jupiter in Vijayawada Territory
  18. 18. [Type text] Page 18 2.7 TVS Motor Company: TVS Motor Company - a member of the TVS group is the largest company of the group in terms of size and turnover. The TVS group has always been inspired by a century-long mission and vision of its own destiny. It is not just a business but a way of doing business, which sets TVS apart from others. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than $1 billion in 2008- 2009. It is the flagship company of the $4 billion TVS Group. The company has four plants located at Hosur and Mysore in south India, Himachal Pradesh, North India and one in Indonesia. The company has a production capacity of 2.5 million units a year. TVS Motor's strength lies in design and development of new products, with the latest launch of seven products on the same day seen as a first in automotive history. TVS delivers total customer satisfaction by anticipating the customer's need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is its continuous source of inspiration. TVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching seven new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation. 2.8 MILESTONES: 1980 TVS Motor launched India first two-seater 50cc moped -TVS 50 1984 The two-wheeler major became the first Indian company to introduce 100cc Indo-Japanese motorcycles 1994 - It launched India first indigenous scooterette -- TVS Scooty. 1996-97 - Introduced India first catalytic converter-enabled motorcycle, the 110cc Shogun. Launched India first 5- speed motorcycle, the Shaolin. 2000 - Launched TVS Fiero, India first 150cc, 4-stroke motorcycle. 2001 Launched TVS Victor, 4-stroke 110cc motorcycle, India first fully indigenously designed and manufactured motorcycle
  19. 19. [Type text] Page 19 2002 TVS becomes the world first two-wheeler company to win the world most prestigious recognition in Total Quality Management the Deming Award 2002. TVS wins the Technology Award from Ministry of Science, Government of India for successful commercialization of indigenous technology. 2004 Launched TVS Centra, a world class 4-stroke 100cc motorcycle with revolutionary VT- I engine for best in class mileage. Launched TVS Star, a 100cc motorcycle ideal for the rough terrain. TVS wins TPM Excellence award from Japan Institute of Plant Maintenance (JIPM). TVS wins Outstanding design Excellence Award for TVS Scooty Pep. 2005-06 TVS launches its Indonesian plant. Launched TVS Apache, which set the youth imagination on fire. Apache went on to be the Bike of the year for 2006, winning six prestigious awards. 2007 TVS Motor Company rolls out seven new products. TVS launches its Himachal Pradesh Plant at Nalagarh. 2008 TVS Motor company bags two coveted IT awards in September 2008 SAP ACE 2008 Award and 2008 Symantec South Asia Visionary Award 2008 Apache RTR FI was launched 2008 TVS Motor Company launched the revolutionary 125cc Flame 2009 TVS scooty Streak was launched. 2010 Launch of India’s first Automatic Clutch Motorcycle- TVS JIVE. Launch of India’s first Automatic scooter- TVS WEGO 2012 125 cc premium bike Phoenix was launched. 2013 TVS Jupiter was launched. Table 1 Milestones of TVS
  20. 20. [Type text] Page 20 4 P’s of TVS Motor Company:  Product: Chart 3 TVS product classification TVS is known for its superior quality and the products having advanced features like Anti braking system (ABS), continuous variable timing ignition (CVTI) engine and body-balance technology. The table below shows the Various TVS products:- MOTORCYCLE SCOOTER MOPED Apache RTR 180 ABS Scooty Pep+ XL Super Apache RTR 180 Scooty Pep (Fashion Series) XL Heavy Duty Apache RTR160 Scooty Pep Phoenix 125 drum Scooty Streak Phoenix 125 disc Wego Jive Wego fresh Star City Scooty Zest Sport Jupiter Max 4R Flame Table 2 Products of TVS
  21. 21. [Type text] Page 21 Price: 1) TVS is known for its competitive pricing strategy. 2) Customers can make the payment by cash, through debit/credit card or by financing. Table 3 Price of TVS & its competitor products TVS Ex showroom PRICE HERO Ex showroom PRICE HONDA Ex showroom PRICE Max-4R 48,770 HF Deluxe 46,318 CD110 46561 Sport 45,194 HF Deluxe ECO 48,336 Dream neo 50403 Star city 48,201 Splendor+ 47,300 Dream Yuga 53733 Apache 160 73019 Splendor PRO 50,800 CB Twister 56045 Apache 160 (Rear Disc) 75064 Splendor PRO Classic 51,300 CB Shine 64256 Apache 180 78054 Splendor iSmart 52,008 CBF Stunner 61633 Apache 180 (ABS) 86492 Passion PRO TR 55,100 CB Trigger 81492 Phoenix (drum brakes) 55171 Passion PRO 54,300 CB Unicorn 160 80917 Phoenix (disc) 57815 Glamour 59,125 CBR 150R 127468 Scooty zest 47130 Hunk 73,992 CBR250R 195728 Scooty pep 43579 Impulse 72,771 Activa 125 64541 Scooty streak 45252 Xtreme 73,800 Activa 3G 52112 Wego 52157 ZMR 107,100 Activa i 48568 Jupiter 51278 Karizma 85,000 Dio 50573 XL- Super 31,690 Maestro 50,613 Aviator 58543 XL-heavy duty 33,400 Pleasure 48,900
  22. 22. [Type text] Page 22 Place:  For a company, dealers play an important role in serving customers. It also helps the company to grow and sustain its position in competitive markets. TVS has a robust two tier distribution network with 784 exclusive dealers along with more than 2000 sales and service points. This helped the company to maintain TVS’s name and its promise of reliability to every part of country. The power of such highly efficient and motivated network goes a long way to create goodwill for TVS Motor Company.TVS has also got three manufacturing units in the country i.e. Hosur in Tamil Nadu, Mysore in Karnataka and Solan in Himachal Pradesh and one manufacturing unit outside the country  The channel of distribution is the ‘authorized main dealer and authorized dealer’ network. A direct dealer is a dealer who is authorized to purchase the product directly from the company and sell. An authorized dealer is a dealer who is authorized to purchase the product from any dealer and sell. Promotion: The following promotion variables are considered by TVS for its 2Wheeler segment:  Brand ambassador: M.S. Dhoni, Captain of Indian Cricket Team, Virat Kohli for TVS Sport, Tamil matinee idol Surya for TVS Star.  Tollywood super star Mahesh babu is chosen as the brand ambassador for premium product “Phoenix 125”.  Anushka Sharma, Bollywood star for Scooty pep+  Brand line : ‘Trust, Value and Service’  Advertising : TV, Newspaper, Magazines, Social Media, Sports like Indian Premier League (IPL) and TVS Racing  Sales Promotion: Various schemes are available in the market where customer can avail best of discount in procurement cost and in financing the vehicle.
  23. 23. [Type text] Page 23 CHAPTER -3 PROBLEM DEFINITION Honda Motors has 56% market share in scooters, Hero has 18% market share and TVS is in third position with 15.2% market share for the FY2015. TVS Jupiter is better in features, specifications and cheaper in cost compared to Honda Activa. My study is focused on why people are considering Activa over Jupiter and recommendations I give will help TVS to identify ways to increase its market share.
  24. 24. [Type text] Page 24 CHAPTER-4 APPROACH TO THE PROBLEM Mystery Shopping: I was asked to do Mystery shopping where I visited 14 showrooms in Vijayawada and Guntur as a customer, measured the following attributes and made a comparative assessment of all outlets visited. Sales executives Ambience Sales process Attire Space management Greeting, reception Product knowledge Product display Understanding customer needs Product knowledge of competitor products Customer convenience Product presentation Enthusiasm Test rides Sales closure Complaint handling if any Table 4 Attributes considered for Mystery Shopping Survey: I was given a questionnaire and asked to conduct TVS Jupiter non consideration survey and analyze survey results. Here customers of Activa were targeted as it has major market share in scooter segment. As the survey questionnaire is not scale based I did analysis in Microsoft excel. Sales executive: I was given an opportunity to act as a real time sales executive of TVS in the two Carnivals they conducted each for 3 days. For the first day I was asked to observe the sales process at the carnival and understand how the sales executives explain the product to the customer, what features they were highlighting. Then for the remaining 2 days of first carnival and 3 days of second carnival I interacted directly with the customers. Study on resale value: During the Carnival period most of the customers pointed out low resale value. TVS products carries negative image of low resale value. I did some basic research on factors affecting resale value, had some face to face interviews with the auto consultants.
  25. 25. [Type text] Page 25 CHAPTER-5 RESEARCH METHODOLOGY 5.1 Research design: The research design is exploratory in nature. A questionnaire was designed to study Activa customers, A total of 233 responses were collected. The study focused more on new Activa customers i.e., customers who bought Activa after the launch of Jupiter in 2013. 131 responses were collected from Vijayawada city and 102 responses from Guntur city. 5.2 Data collection from secondary source: Secondary data was collected from sources including the company website. The product brochure was also used to study the technical specifications and features of the product. Society of Indian Automobile Manufacturers (SIAM) website was used to study the industry trend and market share. 5.3 Data collection from primary source: The primary data consists of the responses to the questionnaire by the Activa customers in Vijayawada and Guntur. 131 responses from Vijayawada city and 102 responses from Guntur city.
  26. 26. [Type text] Page 26 CHAPTER-6 DATA ANALYSIS The data gathered was analyzed according to the requirements of the project i.e. to understand why Activa customers preferred this vehicle over TVS Jupiter. Each question of the questionnaire was analyzed in depth to develop an understanding on why people are buying Activa and not considering Jupiter. The data analysis has been done by using Excel. All the data is entered in to Excel sheets and using pivot tables the data is analyzed and compared. 6.1 Analysis of Mystery shopping: Mystery shopping is an activity done to observe the competitors’ pre-sales process and compare it with TVS dealers’ pre-sales process. This observation can be helpful in improving the dealers’ pre-sales process. There are a total of thirteen parameters, which are divided into three segments for convenience. Sales executives Ambience Sales process Attire Space management Greeting, reception Product knowledge Product display Understanding customer needs Product knowledge of competitor products Customer convenience Product presentation Enthusiasm Test rides Sales closure Complaint handling if any Table 5 Attributes considered for Mystery Shopping
  27. 27. [Type text] Page 27 Graph 3 Average score of all showrooms in Vijayawada Graph 4 Comparison between Vijayawada Industry and TVS showroom in Vijayawada
  28. 28. [Type text] Page 28 Graph 5 Average rating of all showrooms in Guntur Graph 6 Comparison between Guntur Industry and TVS showroom in Guntur 7.6 5.8 1.4 4.4 6.2 6 4.8 5.8 2 5.8 2 6.2 0 0 1 2 3 4 5 6 7 8 Guntur Industry 7.6 5.8 1.4 4.4 6.2 6 4.8 5.8 2 5.8 2 6.2 0 8 7 3 4 8 7 6 6 2 7 0 6 0 0 1 2 3 4 5 6 7 8 9 Guntur Industry PioneerTVS
  29. 29. [Type text] Page 29 6.2 Jupiter non consideration survey: A total of 14 questions are framed and each question except the Name is analyzed using Microsoft Excel. Each of the questions were compared with other question. 6.2.1 Analysis for responses in Vijayawada city: Graph 7 Comparison between Age and reason for buying Activa Graph 8 Comparison between Age and difference between Activa and Jupiter Honda Brand Features Mileage Comfort Friends/Fa mily Suggestion Based on market demand Overall 27.48% 9.16% 2.29% 39.69% 12.98% 8.40% 18-25 years 20.00% 16.00% 4.00% 32.00% 20.00% 8.00% 26-35 years 31.71% 9.76% 0.00% 34.15% 12.20% 12.20% 36-45 years 30.56% 8.33% 2.78% 38.89% 8.33% 11.11% above 45 years 24.14% 3.45% 3.45% 55.17% 13.79% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Main reason for buying Activa compared to Age Overall 18-25 years 26-35 years 36-45 years above 45 years Brand Value 46.73% 40.00% 47.06% 53.57% 45.00% Features of Activa > Jupiter 17.76% 32.00% 11.76% 7.14% 25.00% Activa is well known than Jupiter 35.51% 28.00% 41.18% 39.29% 30.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Main difference between Activa & Jupiter compared to Age
  30. 30. [Type text] Page 30 Graph 9 Comparison between Previous vehicle used and occupation Graph 10 Comparison between mode of payment and occupation Overall Student Job Business Scooter 25.95% 0.00% 24.19% 38.00% Bike 38.93% 42.11% 33.87% 44.00% First time user 29.01% 52.63% 35.48% 12.00% TVS moped 6.11% 5.26% 6.45% 6.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Previous Vehicle compared to Occupation Overall Student Job Business Cash 61.83% 68.42% 61.29% 60.00% Finance 38.17% 31.58% 38.71% 40.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% AxisTitle Mode of payment compared to Occupation
  31. 31. [Type text] Page 31 Graph 11 Comparison between Resale value used and occupation Graph 12 Comparison between previous vehicle used and main reason for buying Activa Overall Student Job Business Yes 45.04% 31.58% 51.61% 42.00% No 54.96% 68.42% 48.39% 58.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% AxisTitle Considering Resale value compared to Occupation Honda Brand Features Mileage Comfort Friends/Fa mily Suggestion Based on market demand Overall 27.48% 9.16% 2.29% 39.69% 12.98% 8.40% Scooter 29.41% 2.94% 2.94% 55.88% 8.82% 0.00% Bike 41.18% 7.84% 1.96% 29.41% 5.88% 13.73% First time user 13.16% 13.16% 2.63% 36.84% 23.68% 10.53% TVS moped 0.00% 25.00% 0.00% 50.00% 25.00% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Main reason for buying Activa compared to Previous vehicle
  32. 32. [Type text] Page 32 Graph 13 Comparison between mode of payment and annual income Graph 14 Comparison between considering resale value while purchasing and annual income Overall less than 100000 100000-250000 250000-400000 above 400000 Cash 61.83% 58.62% 52.46% 74.19% 90.00% Finance 38.17% 41.38% 47.54% 25.81% 10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% AxisTitle Mode of payment compared to Annual Income Overall less than 100000 100000-250000 250000-400000 above 400000 Yes 45.04% 41.38% 55.74% 38.71% 10.00% No 54.96% 58.62% 44.26% 61.29% 90.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% AxisTitle Considering resale value when purchasing compared to Annual Income
  33. 33. [Type text] Page 33 Graph 15 Comparison between showroom visitors and showroom Ambience Graph 16 Comparison between showroom visitors and showroom knowledge Poor Average Good Excellent Overall 17.14% 37.14% 37.14% 8.57% Yes 17.14% 37.14% 37.14% 8.57% No 0.00% 0.00% 0.00% 0.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% AxisTitle Showroom Ambiance compared with Showroom visitors Poor Average Good Excellent Overall 5.71% 31.43% 60.00% 2.86% Yes 5.71% 31.43% 60.00% 2.86% No 0.00% 0.00% 0.00% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% AxisTitle Sales Executive knowledge compared to showroom visitors
  34. 34. [Type text] Page 34 6.2.2 Analysis of responses from Guntur city: Graph 17 Comparison between previous vehicle used and occupation Graph 18 Comparison between annual income and occupation Overall Student Job Business Scooter 19.61% 7.14% 15.52% 33.33% Bike 52.94% 50.00% 56.90% 46.67% First time user 21.57% 42.86% 22.41% 10.00% TVS moped 5.88% 0.00% 5.17% 10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Previous Vehicle compared to Occupation Overall Student Job Business less than 100000 15.69% 14.29% 10.34% 26.67% 100000-250000 50.00% 28.57% 51.72% 56.67% 250000-400000 30.39% 35.71% 36.21% 16.67% above 400000 3.92% 21.43% 1.72% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% AxisTitle Annual Income compared to Occupation
  35. 35. [Type text] Page 35 Graph 19 Comparison between Annual income and previous vehicle used Graph 20 Comparison between Reason for buying Activa and previous vehicle used Overall Scooter Bike First time user TVS moped less than 100000 15.69% 25.00% 14.81% 0.00% 50.00% 100000-250000 50.00% 40.00% 46.30% 68.18% 50.00% 250000-400000 30.39% 35.00% 33.33% 27.27% 0.00% above 400000 3.92% 0.00% 5.56% 4.55% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% AxisTitle Annual Income compared to Previous Vehicle used Honda Brand Features Mileage Comfort Friends/Fam ily Suggestion Based on market demand Overall 19.61% 8.82% 5.88% 41.18% 14.71% 9.80% Scooter 5.00% 15.00% 5.00% 60.00% 10.00% 5.00% Bike 31.48% 5.56% 5.56% 38.89% 3.70% 14.81% First time user 9.09% 9.09% 0.00% 31.82% 50.00% 0.00% TVS moped 0.00% 16.67% 33.33% 33.33% 0.00% 16.67% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% AxisTitle Main reason for buying Activa compared to Previous vehicle
  36. 36. [Type text] Page 36 Graph 21 Comparison between showroom visitors and showroom ambience Graph 22 Comparison between showroom visitors and sales executive knowledge Poor Average Good Excellent Overall 10.00% 46.67% 43.33% 0.00% Yes 10.00% 46.67% 43.33% 0.00% No 0.00% 0.00% 0.00% 0.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% AxisTitle Showroom Ambiance compared with Showroom visitors Poor Average Good Excellent Overall 6.67% 10.00% 76.67% 6.67% Yes 6.67% 10.00% 76.67% 6.67% No 0.00% 0.00% 0.00% 0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% AxisTitle Sales Executive knowledge compared to showroom visitors
  37. 37. [Type text] Page 37 6.3 Study on resale market for scooters with focus on TVS vehicles: Resale value: It is the negotiated price of a vehicle that has already been purchased and used significantly. Obviously the perception of remaining useful economic life by the buyer would be a critical determinant of this variable. I took responses from 20 Auto consultants some of whom have been active in the market for the past 20 years. Factors influencing for buying a vehicle: 1. Model (Year of manufacturing) 2. Engine Condition of vehicle 3. Outlook of vehicle : External condition of the vehicle like body paint, damage though accidents, scratches. 4. Tires condition Fast moving vehicles in secondary market: 1. Honda 1. Activa 2. Unicorn 3. Shine 2. Hero 1. Passion pro 2. Glamour 3. Bajaj 1. Pulsar 4. Yamaha 1. FZ 2. R15 5. TVS 1. XL-Super, Heavy duty 6. Suzuki 1. Access Reason for low resale value for TVS: 1. Brand value plays a major role. Honda and Hero are considered as the only brands in the market. 2. Demand in the market. 3. Spares availability is less in the secondary market. 4. Mechanical work for TVS is difficult compared to Hero and Honda. Engines of TVS are vertical where it is difficult to repair or replace parts to engine
  38. 38. [Type text] Page 38 CHAPTER-7 RESULTS AND CONCLUSION 7.1 Conclusion: For TVS, it should have a clear understanding of the competitive advantages and disadvantages of its products with the competitors. It was also proved that TVS has to improve its products visibility by employing better marketing communication strategies. It was also observed that TVS has to improve awareness of Jupiter when compared with the market leader Honda Activa. I have done this project to identify the loopholes in the strategies and processes of the company and to enhance the sales and sustain it is a long term aspect. 7.2 Result: A total of 233 responses were collected. Focused more on new Activa customers i.e, customers who bought Activa after the launch of Jupiter in 2013. 131 responses were collected from Vijayawada city and 102 responses were recorded in Guntur city. Some of the results related to the survey are shown below graphically Results in Vijayawada City: Gender: Graph 23 Gender statistics of Vijayawada survey
  39. 39. [Type text] Page 39 Age: Graph 24 Age statistics of Vijayawada survey Occupation: Graph 25 Occupation statistics of Vijayawada survey
  40. 40. [Type text] Page 40 Previous Vehicle Used: Graph 26 Previous vehicle used statistics of Vijayawada survey Annual Income: Graph 27 Annual Income statistics of Vijayawada survey
  41. 41. [Type text] Page 41 Which of these vehicles do you see/hear more though advertisements? Graph 28 Response for most seen vehicle in Vijayawada Survey What is main reason for buying Activa? Graph 29 Response for main reason for buying Activa in Vijayawada Survey
  42. 42. [Type text] Page 42 Did you visit TVS showroom and consider Jupiter before buying Activa? Graph 30 Response for visiting TVS showroom and considered Jupiter before buying Activa in Vijayawada Survey In your opinion What is main difference between Activa and Jupiter? Graph 31 Response for main difference between Activa and Jupiter in Vijayawada Survey
  43. 43. [Type text] Page 43 Do you recommend Activa to your friends/family members? Graph 32 Response for recommending Activa on a scale of 10 in Vijayawada survey
  44. 44. [Type text] Page 44 Results in Guntur City: Gender: Graph 33 Gender statistics of Guntur survey Age: Graph 34 Age statistics of Guntur survey
  45. 45. [Type text] Page 45 Occupation: Graph 35 Occupation statistics of Guntur survey Previous vehicle used: Graph 36 Previous vehicle used statistics of Guntur survey Annual Income: Graph 37 Annual income statistics of Guntur survey
  46. 46. [Type text] Page 46 Which of these vehicles do you see/hear more though advertisements? Graph 38 Response for most seen vehicle in Guntur Survey What is main reason for buying Activa? Graph 39 Response for main reason for buying Activa in Guntur Survey
  47. 47. [Type text] Page 47 Did you visit TVS showroom and consider Jupiter before buying Activa? Graph 40 Response for visiting TVS showroom and considered Jupiter before buying Activa in Guntur Survey In your opinion what is main difference between Activa and Jupiter? Graph 41 Response for main difference between Activa and Jupiter in Guntur Survey
  48. 48. [Type text] Page 48 Do you recommend Activa to your friends/family members? Graph 42 Response for recommending Activa on a scale of 10 in Guntur survey
  49. 49. [Type text] Page 49 CHAPTER -8 LIMITATIONS AND CAVEATS This project hoped to provide as realistic results as possible. The sample was chosen to be as representative of the population as could be. The following are the limitations of the project:  The sample chosen closely represents the target population but the result may lack accuracy as the sample size is not very large.  There is a chance of respondents being biased in terms of product characteristics.
  50. 50. [Type text] Page 50 CHAPTER -9 RECOMMENDATIONS  Impart knowledge to sales executives on competitor products.  Sales executives should be appropriately attired.  There is no more belief that scooter segment is for women, it is better to have both men and women sales executives for scooter segment.  Sales executives should offer every prospective customer for a test ride.  Understanding customer needs is very important which build up brand.  Sales executives should do regular follow up with customers and get feedback as also provide help where needed either through expediting After Sales Service or providing advice where asked for.  TVS Motors should be able to attract customers by giving discount if they buy on the same day or the following day.  Proper recruiting of sales executives will have a great positive impact on sale of TVS products.  Giving more and flexible finance options can attract Income groups below 250000 per annum.  Run Customer Reward Programs like giving offers to existing TVS customers.  Encourage dealers by giving incentives if they achieve targets.  Proper enquiry quotation should be maintained.  Collect contact information of customers who visited TVS showroom and use it to follow up.  TVS Jupiter should be promoted as more comfort scooter because around 60% answered comfort as main reason for buying Activa.  Adequate availability of spare parts should be ensured at reasonable prices.  Brochure stands at every showroom should be mandatory.  Quality after sale service makes customer loyal to the company increase the publicity though word of mouth.
  51. 51. [Type text] Page 51 CHAPTER-10 EXHIBITS 10.1 Questionnaire: Name (optional):_______________________ Gender: Male ( ) Female ( ) Age: 18-25years ( ) 26-35years ( ) 36-45years ( ) above 45 ( ) Qualification: Student ( ) Job ( ) Business ( ) Previous owned Product: __________________ Annual income (of father if student) Less than 100000 ( ) 100000 – 250000 ( ) 250000-400000( ) Above 400000 ( ) 1. Which of these vehicles do you see/hear more through advertisements? Honda Activa( ) TVS Jupiter ( ) Suzuki Access ( ) Hero Maestro ( ) 2. What is the main reason for buying Activa? Honda Brand ( ) Features ( ) Mileage ( ) Comfort ( ) Friends/family suggestion ( ) Based on Market Demand ( ) 3. Did you visit TVS showroom and considered Jupiter before buying Activa? Yes ( ) No ( ) 4. If yes how is TVS showroom a) Ambiance Poor ( ) Average ( ) Good ( ) Excellent ( ) b) Sales executives’ knowledge Poor ( ) Average ( ) Good ( ) Excellent ( ) 5. In your opinion what is main difference between Activa and Jupiter? Brand Value ( ) Features of Activa > Jupiter ( ) Activa is well known than Jupiter ( ) 6. Which mode of payment did you made? Cash ( ) Finance ( ) 7. Do you consider resale value while purchasing? Yes ( ) No ( ) 8. Do you recommend Activa to your family/Friends? 0 1 2 3 4 5 6 7 8 9 10 Never For sure
  52. 52. [Type text] Page 52 10.2 Pictures of summer 1st carnival:
  53. 53. [Type text] Page 53 10.2 Pictures of summer 2nd carnival:
  54. 54. [Type text] Page 54 10.3 Marketing activity at Vijayawada:
  55. 55. [Type text] Page 55 10.3 Marketing activity at Guntur:
  56. 56. [Type text] Page 56 CHAPTER-11 REFERENCES http://www.siamindia.com/ http://www.tvsmotor.in/ www.automobileindia.com http://auto.indiamart.com Indian two-wheeler industry: back on growth path – ICRA Indian Two-Wheeler Industry, ICRA Sectoral Analysis
  57. 57. [Type text] Page 57 CHAPTER-12 GLOSSARY Following is the list of abbreviations used in the report in an alphabetical order: 1) ABS - Anti breaking system 2) i.e. – That is 3) SIAM – Society of Indian Automobile Manufacturers

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