Described about the main factors that lead to decrease in sales of filters in 2011. Also recommended a better & unique promotional strategy for gaining a reasonable share in the present competitive market. For further queries mail me to arunhsr@hotmail.com or contact me in my address..;) 6/4,Vasavi Nilayam, Lakshmi Narayana Nagar, Hosur-635109. Tamil Nadu.

1. Report on
A STUDY ON EFFECTIVE PROMOTIONAL ACTIVITIES FOR
FILTERS IN LUCAS-TVS
Prepared by
R.Arun Kumar
Registration no:
10SBCM0284
Under the Guidance of Prof. Jacob Alexander
In partial fulfillment of the Course-Industry Internship Programme (IIP) in
Semester II of the Post Graduate Programme in Management
(Batch: Aug 2010-12)
Alliance University School of Business
Chikkahagade Cross, Chandapura - Anekal Main Road, Anekal, Bangalore - 562106, Karnataka, India
Page 1

2. Post Graduate Programme in Management
Industry Internship Programme (IIP)
Declaration
This is to declare that the Report entitled “A STUDY ON EFFECTIVE PROMOTIONAL
ACTIVITIES FOR FILTERS IN LUCAS-TVS” has been made for the partial fulfillment of
the Course: Industry Internship Programme (IIP) in Semester II (Batch: August 2010-12) by me
at Lucas-TVS (organization) under the guidance of Prof. Jacob Alexander
I confirm that this Report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by any other
person. I also confirm that the contents of the report and the views contained therein have been
discussed and deliberated with the Faculty Guide.
Signature of the Student :
Name of the Student (in Capital Letters) : R.ARUN KUMAR
Registration No : 10SBCM0284
Page 2

3. Post Graduate Programme in Management
Certificate
This is to certify that Mr. R.Arun Kumar. Regn. No.10SBCM0284 has completed the Report
entitled “A STUDY ON EFFECTIVE PROMOTIONAL ACTIVITIES FOR FILTERS IN
LUCAS-TVS” under my guidance for the partial fulfillment of the Course: Industry Internship
Programme (IIP) in Semester II of the Post Graduate Programme in Management (Batch: Aug
2010 – 2012).
Signature of Faculty Guide:
Name of the Faculty Guide: Prof. Jacob Alexander
Page 3

4. ACKNOWLEDGEMENT
First and foremost, I would like to thank my Faculty Guide, Prof. Jacob Alexander for his
closely monitoring my work and giving feedback ensuring that the work I did was relevant to the
market as well in keeping with the academic requirements.
I would also like to thank my Industrial Guide, G.N.Balasubramaniyan, for giving me the
opportunity to work at Lucas-TVS marketing unit. He was flexible in allowing me do work that
was useful for Lucas-TVS while at the same time was in alignment to the college needs.
My thanks to all other faculties, seniors and batch mates of Alliance who have been of immense
help and have always been ready to help me irrespective of their other commitments.
R.Arun Kumar.
Page 4

5. TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………………………. 08
1. INTRODUCTION………………………………………………………………… 10
1.1 INDUSTRY PROFILE (AUTOMOBILE)……...……………………………. 12
1.2 COMPANY PROFILE (Lucas-TVS)…..……………………….…………….. 25
1.3 PRODUCT/PROJECT PROFILE…………………………………………….. 34
2. METHODOLOGY……………………………………………………………….. 35
2.1 PROBLEM STATEMENT…………………………………………………… 36
2.2 OBJECTIVE………………………………………………………………...... 36
2.3 RESEARCH METHODOLOGY……………………………………………... 36
2.3.1 SOURCES OF DATA……………………………………………… 36
2.3.2 SAMPLING PLAN………………………………………………… 37
2.3.3 TOOLS USED FOR DATA COLLECTION…………………........ 38
2.4 LIMITATIONS OF THE STUDY……………………………………………. 39
3. ANALYSIS & FINDINGS……………………………………………………….. 40
4. RECOMMENDATIONS…………………………………………………………..67
5. CONCLUSION ……………………………………………………………………69
6. LEARNING OUTCOME………………………………………………………… 71
BIBILIOGRAPHY…………………………………………………………………….. 73
ANNEXTURE………………………………………………………………………….75
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6. TABLE OF FIGURES
Fig 1: The domestic market share 2010-11…………………………………………………21
Fig 2: Air Filters…………………………………………………………………………… 30
Fig 3: Fuel Filters………………………………………………………………………….. 31
Fig 4: Oil Filters…………………………………………………………………………… 32
Fig 5: Awareness to dealers about filters produced by Lucas-TVS……………….............. 41
Fig 6: Awareness to mechanics about filters produced by Lucas-TVS……………………. 42
Fig 7: Preference of dealers towards purchasing filters…………………………………… 43
Fig 8: Preference of mechanics towards purchasing filters……………………….............. 44
Fig 9: Reasons for preferring that brand by dealers……………………………….............. 45
Fig 10: Reasons for preferring that brand by mechanics………………………….............. 46
Fig 11: Dealers opinion on factors influencing customers on purchasing filters….............. 47
Fig 12: Mechanics opinion on factors influencing customers on purchasing filters………. 48
Fig 13: Purchase of Lucas-TVS filters by dealers…………………………………………. 50
Fig 14: Purchase of Lucas-TVS filters by mechanics…………………………………….. 51
Fig 15: Promotional activity for Lucas-TVS by dealers…………………………………… 54
Fig 16: Promotional activity for Lucas-TVS by mechanics………………………………. 55
Fig 17: Dealers ranking based on filter products………………………………………….. 56
Fig 18: Mechanics ranking based on filter products………………………………............. 57
Fig 19: Dealers opinion to improve sales of filters………………………………………… 58
Fig 20: Mechanics opinion to improve sales of filters…………………………………….. 59
Fig 21: Visiting of dealers by company representative……………………………............. 60
Fig 22: Visiting of mechanics by company representative…………………………………61
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7. LIST OF TABLES
Table 1: Major players of the automobile industry in India……………………………….. 15
Table 2: Business activities of Eicher group………………………………………………. 18
Table 3: The domestic market share 2010-11……………………………………………… 21
Table 4: Sample size of the survey………………………………………………………… 37
Table 5: Awareness to dealers about filters produced by Lucas-TVS…………….............. 41
Table 6: Awareness to mechanics about filters produced by Lucas-TVS…………………. 42
Table 7: Preference of dealers towards purchasing filters…………………………………. 43
Table 8: Preference of mechanics towards purchasing filters…………………………….. 44
Table 9: Reasons for preferring that brand by dealers…………………………………….. 45
Table 10: Reasons for preferring that brand by mechanics……………………………….. 46
Table 11: Dealers opinion on factors influencing customers on purchasing filters………. 47
Table 12: Mechanics opinion on factors influencing customers on purchasing filters……. 48
Table 13: Purchase of Lucas-TVS filters by dealers………………………………………. 50
Table 14: Purchase of Lucas-TVS filters by mechanics…………………………………… 51
Table 15: Opinion about the usage of filters…………………………………………......... 52
Table 16: Promotional activity for Lucas-TVS by dealers………………………………… 54
Table 17: Promotional activity for Lucas-TVS by mechanics…………………………….. 55
Table 18: Dealers ranking based on filter products……………………………………….. 56
Table 19: Mechanics ranking based on filter products………………………………......... 57
Table 20: Dealers opinion to improve sales of filters……………………………………… 58
Table 21: Mechanics opinion to improve sales of filters………………………………….. 59
Table 22: Visiting of dealers by company representative……………………………......... 60
Table 23: Visiting of mechanics by company representative……………………………… 61
Table 24: Group statistics and Independent test in terms of making profit by mechanic…..63
Table 25: Group statistics and Independent test in terms of profit margin by dealers ……. 64
Page 7

8. EXECUTIVE SUMMARY
Page 8

9. Lucas - TVS joint venture of Lucas Industries plc., UK and T V Sundaram Iyengar &
Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive
component suppliers in the world, Lucas Varity was formed by the merger of the Lucas
Industries of the UK and the Varity Corporation of the US in September 1996. The company
designs, manufactures and supplies advanced technology systems, products and services to the
world's automotive, after market, diesel engine and aerospace industries. Lucas-TVS Limited
provides: Air Freight Services, Alternators, Headlamp Washing Systems, Ignition Coils, Motor
Bases, Starter Motors, Starters and filters.
The project undertaken is a study on the product promotion of filters produced by Lucas-
TVS. The focus of the study was to understand the reasons for the decrease in the sales of filter
products, when compared with their level of expectation and identify the issues & concerns
followed by the suggestions to fill the gap. The study involves working with salesman of Lucas-
TVS for the purpose of getting opinions from the dealers and mechanic/end users regarding the
survey. The primary data was collected by visiting the market along with the sales
representatives. Various data were collected and was used to understand the competitor‟s
strategy at the ground level which helped to respond accordingly for the marketing unit.
Page 9

10. 1. INTRODUCTION
Page 10

11. Lucas-TVS Limited follows the multi market strategy where the risk is being diversified
and serves several markets. Lucas-TVS manufacture products such as: Alternators, Headlamp
Washing Systems, Ignition Coils, Motor Bases, Starter Motors, Starters and filters. Lucas-TVS
started to produce filters only from the middle of the year 2009. Right now they are
manufacturing filters around 50 varieties for four wheelers including heavy commercial vehicles.
The entering of Lucas-TVS in to manufacturing of filters can be referred as laggard entry. The
earlier companies in to this field are Mico Bosch, Purolator, Fleet Guard, Elofic etc... The
competition is high regarding the sales of filters. This is due to the awareness and the trust
established by the end users towards the previous companies
.
As the filter products of Lucas-TVS falls under the laggard entry strategy, they have to
serve the needs of the market better than the present firms. As they need to serve the market in a
better manner and capture the market share, they are providing many offers and promotional
schemes to the dealers/retailers right now. As the end users are mostly mechanic, Lucas-TVS
which has a good brand name in the market purely believe in personal selling (in the form of
dealers) rather than creating awareness by advertising to the end users. Right now, the company
can‟t reach out their expected sales in the market because of various factors.
In this project a detailed study is done based on all their activities and their effectiveness
on their target customers by doing a survey. The survey is mainly done to both dealers and
mechanics. The sample size is based on the two types of localities, urban and semi-urban. The
two different localities are taken to find whether there is any significant difference between two
different localities. This survey based on two different localities gives us a clear knowledge
about the factors affecting the sales of the product.
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12. 1.1 INDUSTRY PROFILE (AUTOMOBILE INDUSTRY):
Automobile, which is a self propelled vehicle used primarily on public roads but
adaptable to other surfaces. Automobiles changed the world during 20 th century, particularly in
US and other industrialized nations. The key elements of industrial economies are the
manufacturing, sales and servicing of automobiles. Along with job creation and greater mobility,
automobile has brought noise and air pollution. Automobile accidents rank as the leading cause
of death and injury throughout the world.
Automobiles can be classified by size, style, number of doors, and intended use. The
typical automobile, called car, auto, motorcar, and passenger car, has four wheels and can carry
up to six people. Larger vehicles are designed to carry more passengers are called vans,
minivans, omnibuses, or buses. Depending on their size and design, those which are used to
carry cargo are called pickups or trucks. Sport-utility vehicles, also known as SUVs, are
more rugged than passenger cars and are designed for driving in mud or snow.
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first
automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military
tractor that made the use of a steam engine. The range of the automobile, however, was very
brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these
automobiles were not fit for the roads as the steam engines made them very heavy and large, and
required ample starting time. Oliver Evans was the first to design a steam engine driven
automobile in the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832
and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were
amongst the first to invent more applicable automobiles, making use of non-rechargeable electric
batteries in 1842. Development of roads made travelling comfortable and as a result, the short
ranged, electric battery driven automobiles were no more the best option for travelling over
longer distances.
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13. Charles Kettering's invention of the electric starter in 1912, turned the process of starting
automobiles more faster and easier at the same time, doing away with the hand tools. Crude oil
being discovered in Texas, the automobiles driven by engines that ran on gasoline became even
more affordable, as the prices of gasoline reduced. The prices of electric automobiles were going
through a constant rise, in spite of the fact that these were less efficient than the gasoline
automobiles.
Jean Joseph Étienne Lenoir was the first to invent an internal combustion engine that ran
on petroleum and attached it to a three-wheeled carriage, and successfully traversed a distance of
fifty miles in 1863.Karl Benz manufactured the first automobile ( a three-wheeled car) that was
affordable and compatible for travelling over long distances for its internal combustion engine
that ran on gas, in 1886.Later in 1887, Gottlieb Daimler was the first to invent the predecessor of
the modern automobile with an engine that had a vertical cylinder in addition to a gasoline driven
carburetor. First building a two-wheeled automobile (“Reitwagen”), Daimler was again the first
to build a four-wheeled automobile in 1886. The engines manufactured by Daimler were
improved upon and these portable and fast engines made automobiles the way we see them
today.
The advanced engines turned the slow, expensive automobiles of the yesteryears, a thing
of the past, and cars became more affordable as both the prices of gasoline and petroleum as well
as the manufacturing costs reduced through their mass manufacture at the assembly lines of
factories. Penhard and Levassor in 1889, and Peugeot in 1991 became the earliest mass
manufacturers of the modern automobiles.
At present, Indian automobile industry is making a major contribution in increasing the
country's GDP by 9% every year. New heights have been scaled by the industry in the year 2010.
In January 2010, total automobile sales in the domestic market reached 11,14,157 units, this
shows an increment of 44.9% compared to the sales units of 7,68,698 of same period last year.
Even for the month of April-October after a gap of 11 years, total automobile sales in India stood
at 1,120,081 Units. Annually, the Indian automobile industry is growing at an average rate of
30% and marking itself as one of the fastest growing industries in India. According to the reports
Page 13

14. of Society of Indian Automobile Manufacturers (SIAM), annual car sales are estimated to reach
5 million vehicles by 2015 and more than 9 million by 2020. New York Times reports, several
automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki have
expanded their manufacturing facilities owing to India's strong engineering base and expertise in
the manufacturing of low-cost, fuel-efficient cars.
Some of the statistics for the Automobile Industry are,
 At present, India is the second largest market for two & three wheelers after China.
 India along with China is the largest manufacturers in the world in the production of
tractors.
 The subcontinent stands as the 4th largest producer of trucks in the world.
 Our country is positioned 11th in car production in the world in passenger car segment.
 In India car penetration per 1000 is only 7 compared to 500 in Germany.
 India will become the world‟s third largest automobile market by 2030, behind just China
and the US. – ( Forecasted by US-based consultancy Keystone-a subsidiary of LaSalle
Consulting Associates)
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15. 1.1.1 MAJOR PLAYERS OF THE AUTOMOBILE INDUSTRY IN INDIA:
The largest manufacturers in each segment within the automobile industry in India are
given in the Table 1.
Car Market Heavy Vehicles Market
Maruti Suzuki Ashok Leyland
Hyundai Motors Eicher Motor Ltd
Tata Motors Tata Motors
Mahindra & Mahindra Swaraj Enterprise
Hindustan Motors Force Motor
Honda siel cars India Ltd
Fiat India Pvt Ltd
Reva Electric Car Co.
General Motors
Ford India Ltd
Toyota Kirloskar Motor Ltd
Skoda Auto India Private Ltd
Table 1: Major players of the automobile industry in India
1.1.1.1 CAR SEGMENT:
1.1.1.1.1 Maruti Suzuki:
Maruti Suzuki India Ltd. This was formerly known as the Maruti Udyog Ltd. Is a
subsidiary of the Japan based Suzuki Motor Corporation.
The company offers around 14 brands and over 150 variants of cars across a wide range
of segments. It is one of the biggest and one of the first companies to serve India in car segments.
Maruti was the first Company which studied the consumer demand and reacted to it. Market
segmentation strategy adopted by Maruti is to target different income level people and with
different models or variants of cars.
The company is also listed on Bombay Stock Exchange and National Stock exchange.
Page 15

16. 1.1.1.1.2 Hyundai Motors:
Hyundai entered into the Indian market in the year 1996 through its subsidiary
HMIL.HMIL presently markets 6 models of cars across different segments. It manufactures cars
like the Santro, i10, i20, Accent, Verna, Sonata and the Santa Fe.
HMIL is the first automotive company in India that has managed to export around 10
lakh cars in just over a decade. The present market share of HMIL as of 2010 is 13.52%.
1.1.1.1.3 Mahindra & Mahindra:
Mahindra & Mahindra Limited is the company of the Mahindra Group, based in Mumbai,
India. The company was Formed in 1945 in Ludhiana as Mahindra & Mohammed by brothers
K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed. The company changed its
name to Mahindra & Mahindra in 1948.
Mahindra & Mahindra was basically a steel trading company in 1945. But soon it moved
to manufacturing general-purpose utility vehicles, starting with assembly under license of the
iconic Will‟s Jeep in India.
M&M later moved into the manufacturing of light commercial vehicles (LCVs) and
agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its
UV Scorpio and enjoys a growing global market presence in both the automotive and tractor
businesses.
1.1.1.1.4 General Motors:
GMIPL is a subsidiary of General Motors that is into the automobile business in India. It
is the 5th largest automobile manufacturing company in India.
In 1994 GMIPL was formed as a joint venture, where owned 50 percent by Hindustan
Motors and 50 percent by General Motors. GM bought out the Hindustan Motors interest in
1991. In 2003 it started production of Chevrolet vehicles at Haloi location.
Page 16

17. In 2000, GM moved its headquarters to Gurgaon. In 2003, the company also opened its
technical center operations in Bangalore, which included research and development and vehicle
engineering activities.
The technical center was expanded to include purchasing and financial support services
for General Motors operations located outside of India (2006), vehicle engine and transmission
design and engineering (2007) and a vehicle design studio (2007).
GMIPL now has a second vehicle assembly plant in Talagaon, which started production
of Chevrolet vehicles in September 2008
1.1.1.2 HEAVY VEHICLES SEGMENT:
1.1.1.2.1 Ashok Leyland Ltd:
For over five decades, Ashok Leyland has been the technology leader in India's
commercial vehicle industry, molding the country's commercial vehicle profile by introducing
technologies and product ideas that have gone on to become industry norms.
From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage
vehicles, from numerous special application vehicles to diesel engines for industrial, marine and
genset applications, Ashok Leyland offers a wide range of products.
1.1.1.2.2 Eicher Motors Ltd:
Eicher began its business operations in 1959 with the roll out of India‟s first tractor.
Today the Eicher group is a significant player in the Indian automobile industry with a gross
turnover of over 19000 million in the year 2005-06.
Eicher group has diversified business interests in design & development, manufacturing
and local/international marketing of Trucks & Buses, Motorcycles, Automotive Gears and
Page 17

18. components. Eicher Motors Limited comprises of the automotive business of the Eicher group.
The table 2 describes about the business activities of the company are carried out by its
constituent business units, each covering a product category.
Business Area Products
Trucks & Buses
VE Commercial Vehicles Ltd Volvo Trucks
Gears & Shafts
Royal Enfield Motorcycles
Table 2: Business activities of Eicher group
1.1.1.2.3 Tata Motors:
Tata Motors Limited is India‟s largest automobile company, with consolidated revenues
of Rs.1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The Company is the world's fourth largest
truck manufacturer, and the world's third largest bus manufacturer.
The Company's over 25,000 employees are guided by the vision to be "best in the manner
in which we operate, best in the products we deliver, and best in our value system and ethics."
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and
the world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and
transportation cost).
Tata Motors, the first Company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international automobile
company.
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19. 1.1.1.2.4 Force Motors:
A fully vertically integrated and complete automobile company - concentrating on
satisfying customer needs with high quality, high utility and high technology products through
superior product design, production engineering, hi-tech manufacturing and innovative
marketing.
The word 'Force' to us is not just the product of 'mass' and 'acceleration'. It reflects our
values of ethical business, our strength in technology, in manufacturing and our energy in
product development. It is also the binding force in our close and mutually beneficial relations
with our customers, dealers, suppliers and business associates. Force is the dynamism with which
we venture into our future supported by the array of Technical Collaborations and Business
Alliances with world leaders like MAN, Daimler Chrysler.
1.1.2 GLOBAL SCENARIO:
Over the years, the industry has grown significantly to become as one of the well-
established industries all over the world. The global automotive industry has been evolving
through different phases characterized by its own developments. Over a period of time, the
industry has witnessed several ups and downs, only to emerge stronger and better equipped to
take on the challenges. General Motors, established in 1908 in Michigan, USA is almost
completing a century of operation. Later, it was Henry Ford, who in the year 1914, endeavored in
the mass production of cars, reducing the costs of manufacturing. In fact, these two companies
are considered to be the pioneers in the automobile industry for bringing in innovation and
setting high standards in the industry.
In 2007, a total of 79.9 million new automobiles were sold worldwide: 22.9 million in
Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada, 4.4 million in Latin
America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America
and Japan were stagnant, while those in South America and other parts of Asia grew strongly. Of
the major markets, China, Russia, Brazil and India saw the most rapid growth. About 250 million
vehicles are in use in the United States. Around the world, there were about 806 million cars and
Page 19

20. light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel
yearly [SIAM India – Society of Indian Automobile Manufacturers].
The numbers are increasing rapidly, especially in China. In the opinion of some, urban
transport systems based around the car have proved unsustainable, consuming excessive energy,
affecting the health of populations, and delivering a declining level of service despite increasing
investments. Many of these negative impacts fall disproportionately on those social groups who
are also least likely to own and drive cars. The sustainable transport movement focuses on
solutions to these problems.
1.1.3 INDIAN SCENARIO:
India is emerging as a source of high value and advanced quality engineering products
and services for multinational companies. India is set to emerge not only as a large domestic
market for automotive manufacturers, but also as a crucial link in the global automotive chain.
Among other industries, the automotive industry in India is understood to be the most dynamic.
It has been experiencing strong growth rates after de-licensing of the industry in 1991, when
major economic reforms took place in India.
1.1.3.1 Size of the industry:
The automotive industry is one of the largest industries in India and is of high strategic
importance to the Indian manufacturing sector overall. The industry has been growing at a fast
and steady pace over the past five years registering a CAGR of 17 per cent. According to the
Indian Brand Equity Foundation (IBEF), India is envisaged to be the third largest automobile
market in the world by 2030 only behind USA and China. Given below are some of the key
features of the automotive industry in India that indicate the size of the Indian automotive
industry
 Fourth largest market for passenger cars in Asia
 Second largest manufacturer of two-wheelers worldwide
 Fifth largest manufacturer of commercial vehicles worldwide
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21.  Largest manufacturer of tractors and three-wheelers worldwide
The table 3 depicts about the market share for the year 2010-11 according to the category.
We can clearly see that more than 75% of the market share is held by the two-wheeler
category.
Market Share
Passenger Vehicles 16.25%
Commercial Vehicles 4.36%
Three Wheelers 3.39%
Two Wheelers 76%
Table 3: The domestic market share 2010-11
16.25%
4.36%
Passenger Vehicles
3.39%
Commercial Vehicles
Three Wheelers
76% Two Wheelers
Fig 1: The domestic market share 2010-11
The pie chart 1.1.3.1 gives us the information about the domestic share of the automobile
industry according to their category. We can infer that 3/4 th of market share are only by two
wheelers. The remaining 1/4 th of the market share is shared by passenger vehicles, three
wheelers, and commercial vehicles. These above details are gathered from the source SIAM
(Society of Indian Automobile Manufacturers).
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22. 1.1.3.2 Export Trends:
Exports have emerged as a significant revenue earner for the vehicle manufacturers in
India, from past few years. With players‟ aggressive export plans, the next few years are set to
witness new levels of industry revenues from exports. The key destinations are the SAARC
countries, European Countries, Middle East, Latin America, and neighboring countries like
Bangladesh, and Sri Lanka. Maruti Suzuki, Tata Motors and Hyundai Motor India are key
exporters for passenger cars; Tata Motors and Ashok Leyland for commercial vehicles, and Bajaj
Auto for two and three wheelers.
Automobile Export Trends
Category
2008-09 2009-10 2010-11
Passenger Vehicles 22.00% 24.70% 19.40%
Commercial Vehicles 2.70% 2.50% 3.30%
Three Wheelers 9.70% 9.60% 11.50%
Two Wheelers 65.60% 63.20% 65.80%
Table 1.1.3.2 Source: SIAM (Society of Indian Automobile Manufacturers)
From the table 1.1.3.2, we can infer that two wheelers and three wheelers have a better
growth rate when compared to commercial vehicles and passenger vehicles.
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23. 1.1.4 PEST ANALYSIS:
PEST analysis refers to the analysis of the environment in which a business operates. It is
a tool which helps to minimize the threats and maximize the advantages.
1.1.4.1 POLITICAL FACTORS:
Tax policies, laws and trade restrictions relating to the industry are included under this
category. The liberalization policies of 1991 lead to the opening of new paths of growth for the
automobile sector.
The AUTO POLICY proposed by the government in 2002, aimed at converting India into
a globally competitive automobile industry and also a source of automotive components. It also
aimed at achieving high degree of employment and ensures balance of trade and minimizes the
risk for the Indian economy. It facilitates research and development and also encourages
development of vehicles propelled by some alternative sources of energy.
Government of India also introduced environmental regulations to promote healthy
growth of automobile industry. Mass emission norms were introduced for petrol and diesel
vehicles in the year 1991 and 1992 respectively. Two-wheelers in India have to follow the
stringent emission norms. Use of alternative fuels like bio gas and hydrogen are being
encouraged to ensure a healthy growth of the sector.(Davos, 2006)
1.1.4.2 ECONOMIC FACTORS:
The level of economic activity affects the commercial use of automobiles in an economy.
This includes changes in the interest rate, exchange rates and inflationary rates. The contribution
of the automobile industry to the Indian GDP is near about 5% and is expected to grow two-fold
by 2016.
The rapid growth of the Indian economy has encouraged the global competitors to start
up business in India. There has been a growth of 8-10 % in the past 5 years. The improved
standard of living of the people and the feasible financial schemes has enhanced the growth of
the automobile sector.
Page 23

24. The liberalization further encouraged the de-licensing of automobile industry in India. It
has permitted 100% FDI in manufacturing of automobiles and its components and also 100%
FDI in the automotive route. It allowed easy export and import of automobile and automotive
components.
1.1.4.3 SOCIAL FACTORS:
There has been an increase in the customer base to serve due to the changing life-styles of
people. Population growth rate, age distribution and changes in taste and buying behaviour are
included under social factors.
An average family size of 4 in India makes it favourable for the people to purchase more
of passenger cars. Indian customers prefer fuel efficient cars with low running cost; hence there
is a greater preference for compact cars in India.
1.1.4.4 TECNOLOGICAL FACTORS:
Factors like R&D activities, automation, technology incentives and the rate of technology
change are included here. There has been advancement in technologies due to the entry of global
competitors in India. There have been introduction of hybrid vehicles and fuel-efficient cars due
to the environmental issues. In order to capture the market share and economic growth, heavy
investments on R&D has been done.
The Government of India is promoting NATRIP (National Automotive Testing and R&D
Infrastructure Project) to support the growth of auto industry in India. Integrated supply chain for
the automobiles has been brought into practice. There has also been development of customized
solutions for easier collection and analysis of customer feed-back. Technology developments
have also decreased the use of automobiles to some extent. Internet has lead to the increase in the
number of people working from home, and has thus reduced the use of automobiles for
transportation.
Page 24

25. 1.2 COMPANY PROFILE
The TVS Group was established in 1911 by Shri. T V Sundaram Iyengar. As one of
India's largest industrial entities it epitomizes Trust, Value and Service. Today, there are over
thirty companies in the TVS Group, employing more than 40,000 people worldwide and with a
turnover in excess of USD 4 billion.
With steady growth, expansion and diversification, TVS commands a strong presence in
manufacturing of two-wheelers, auto components and computer peripherals. We also have
vibrant businesses in the distribution of heavy commercial vehicles passenger cars, finance and
insurance.
Lucas - TVS established in 1961 as a joint venture between Lucas UK and T V Sundram
Iyengar & Sons (TVS), India to manufacture Automotive Electrical Systems. Lucas-TVS is the
Leader in Auto Electricals in India today with 48 years experience in design and manufacturing.
4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. Lucas - TVS is a
TS16949 and OSHAS 18001 certified company. Lucas-TVS has bagged the Deming application
price in 2004 from the Japanese Union of Scientists and Engineers (JUSE).
Page 25

26. 1.2.1 PEOPLE:
Human resource is an asset never disclosed in a company's balance sheet. They at Lucas-
TVS strongly believe that an organization's most valued assets are its people who individually
and collectively contribute to the achievement of the objectives of the business. Keeping this in
mind, Lucas-TVS's management style lays great emphasis on employee involvement and
actively encourages participation and commitment through Small Group Activities (SGA),
Suggestion Schemes, Voluntary Work Teams and the like.
1.2.2 CULTURE:
A highly visible culture of Commitment, backed up by Discipline & Positive Attitude
prevails across the organization. They believe in the following equation:
Employee Performance = (Knowledge + skill) * Will
Trust, Value, and Service are the key words and beliefs practiced always internally and
externally. Openness and transparency are seen in leadership styles/ meetings. Internal customer-
Supplier equations are extremely strong. SOP (Standard Operating Procedure-shop floor) &
SWP (Standard Work Procedure-office areas) are base points of DRM in ‘line and staff’
functional departments. TEI (Total Employee Involvement) is the foundation of the organization.
Learning culture prevails at all times and all places in the company. 5S is the first step in every
function. Approach and outlook of engineers / managers is always bi-focal (short term and long
term). PDCA is the belief and the Continuous improvement is the driver of growth. Systems and
procedures are always put in place in reality to recognize an orderly workflow. Performance
culture is encouraged and visible results are rewarded. Customer, economy in operations and
Gemba are the basics of business culture. They take care of their employees and they in turn take
care of our customers.
Page 26

27. 1.2.3 EDUCATION AND DEVELOPMENT:
Human Potential is vast and requires the right amount of inputs to be utilized
satisfactorily. Keeping this in mind, they invest significantly in upgrading our employees and
their potential. Training, Skill-building & Career Development are given primary importance as
they all lead to all round development. Beyond all this, On The Job Training and Job Rotation
are also practiced extensively to hone the skills of our employees. Company operates a fully
equipped training center, which features a multi-skill workshop, a product knowledge center, a
CNC trainer and computer facilities. Individual skills are fine-tuned through specialized courses,
both within the country and abroad. Lucas TVS employees in every part of India share ideas and
learn from each other every day. This rich diversity and cultural experience come together to
inspire new technologies, design ideas that meet the needs of all our customers.
1.2.4 KAIZEN CULTURE:
The word „Kaizen‟ originates from the Japanese language. „Kai‟• means „change‟ and
„Zen‟• means „better‟. Anything that is improved form the existing level can be termed as
“Kaizen”•. From the industry perspective, the Kaizens can generally be classified into 3 levels,
namely simple and first level Kaizens, medium level and high level Kaizens, which are
innovations or breakthrough improvements.
In a nutshell, Kaizen is a way of life in Lucas-TVS at all levels of functions for sustaining
the existing standards of performance and continually improving the standards for better to cope
up with ever increasing customer expectations and business competitiveness.
As a part of TPM implementation, they have created Kaizen circles. The circles focus on
Kaizens in line with those nine pillars. Periodical reviews are being conducted Pillar wise and the
Kaizen done in each pillar are explained to all and this way the Kaizen culture is implemented in
all the departments.
Page 27

28. 1.2.5 CUSTOMERS:
Man Force Truck Mahindra
Tatra Motors Swaraj Mazda Eicher Motors Tata Motors Ashok Leyland
PVT. LTD & Mahindra
General
Fiat Hyundai
Motors Ford India Honda Motors Maruti Udyog
India Motor India
India
Mahindra Hindustan Force Mahindra
Tata Motors
Renault Motors Motors & Mahindra
Page 28

29. 1.2.6 AWARDS:
Lucas-TVS, believes that quality begins and ends with the customer. This means identifying
customer needs and comprehensively meeting them. For the company, quality is not just
conformance to drawings or specifications but ensuring customer satisfaction.
1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS - 2008 Auto-
motive sector Ministry of Power, Govt. of India
2. TATA CUMMINS Lucas-TVS is Awarded "OUTSTANDING SUPPLIER &
EXCELLENCE PERFORMANCE during the year 2007 by CUMMINS INDIA
LIMITED
3. Deming Application prize JUSE, Japan
4. Best Supplier Award Maruti Udyog
5. 100 PPM Award Hyundai motor India
6. Q1Award From Ford
1.2.7 PRODUCT PROFILE:
Lucas-TVS Limited located in India provides: Air Freight Services, Alternators,
Headlamp Washing Systems, Ignition Coils, Motor Bases, Starter Motors, Starters and filters.
1.2.7.1 Air Filter:
An air filter is an important part of a car's intake system, because it is through the air
filter that the engine "breathes." An engine needs an exact mixture of fuel and air in order to run,
and all of the air enters the system first through the air filter. The air filter's purpose is to filter
out dirt and other foreign particles in the air, preventing them from entering the system and
possibly damaging the engine.
Page 29

30. Fig 2: Air Filters
An air filter for your car will generally be pretty cheap, due to the construction of filter's
is simple. An air filter is generally a paper-like or fibrous material, folded accordion-style and
arranged on a plastic or metal frame to fit your car's air filter holder. An air filter can also be
made out of a cotton- or fabric-like material, which is then oiled in order to increase airflow
through the filter. The air filter holder is usually a plastic or metal box in which the air filter sits.
Generally, the air filter holder is connected to the intake manifold by a large plastic tube through
which the air flows.
1.2.7.2 Fuel Filter:
The fuel filter is found along the fuel lines, either in the engine compartment or
underneath the vehicle by the fuel tank. The job of the fuel filter is to trap any large foreign
particles in the fuel and stop them from getting into the engine. With the force of the fast up-and-
down motion of the pistons (which compress the air-fuel mixture so it will burn more
efficiently), if any large particles manage to get in the fuel, this could cause some serious damage
to the engine. So, maintaining a clean fuel filter is important to the performance of a vehicle‟s
engine.
Page 30

31. Fig 3: Fuel Filters
Every fuel filter is different and this is due to the differences in the fuel delivery systems.
A carbureted engine (uses a vacuum to suck fuel into the engine) has quite a low-pressure fuel
system. Fuel passes through fuel-resistant rubber hoses. So, the fuel filter is made of metal or
plastic, with an inlet tube out one end and the outlet tube from the other, then a hose is attached
over each end with a circular clamp.
In vehicles with electronic fuel injection, the injectors will squirt fuel into each of the
cylinders. Here fuel is highly pressurized by a pressure regulator. Because of the high-pressure
system, the fuel lines have to be made of metal. Sometimes in these cases the fuel injected
system is placed in a low-pressure section, and can be connected to the rubber hoses with clamp
(almost like that in the carbureted system). However, the fuel filter is normally equipped with a
threaded fitting on each end and it screws into the fuel lines on either side.
1.2.7.3 Oil Filter:
An oil filter is an integral part of the inner workings of your car. The oil filter allows oil
to move through various parts of your car, which is important because oil does things such as
cool your engine and absorb potentially harmful particles that could damage your car. When oil
passes through the oil filter it removes these contaminants from the oil allowing it to pass
through your car again. A properly working oil filter is the reason why you only have to have
your oil changed after an average of 3,000 miles of driving.
Page 31

32. Fig 4: Oil Filters
Oil is pushed through the oil filter back into the engine. The actual filter material has two
parts. The first part removes smaller particles (things like dirt and debris) that could harm various
components in your car if they were left to flow normally through. The liquid oil can move
through the filter material but these solid particles cannot. The second part of the filter material
stops larger particles that the first part couldn't get. Once the oil passes through your oil filter it
passes back into the engine free from these particles at which point it repeats the process.
Page 32

33. 1.2.8 SWOT Analysis:
1.2.8.1 Strengths:
 Lucas-TVS have covered all the segments in the automotive industry from two wheelers
to heavy commercial vehicles.
 It comprises of more than 2000 outlets for distribution network which covers the entire
length and breadth of the country.
 It mainly focuses on quality products which are combined with an urge to constantly
learn and improve in their quality.
 The efforts by the workforce are difficult to be matched by its competitors.
 Participation at the worker level is done by the SGA (Small group activity). This clearly
indicates about their management style.
1.2.8.2 Weaknesses:
 The backward integration is not established properly. From the entire suppliers, only 10%
are able to match their quality standard.
 In spite of excessive measures taken to improve the quality, the company has not been
able to bring down the rejection levels to the international standards.
1.2.8.3 Opportunities:
 A huge opportunity is awaiting for Lucas-TVS in the form of exports market.
 Rapid inflow of investments in this sector will further open up new avenues for the
company by ensuring JIT delivery to OEMs (Original Equipment Manufacturer).
1.2.8.4 Threat:
 The company has established many collaborators. This might prove to be a threat in
future.
 With the liberalization on automobile and auto components, world-class automobile
manufacturers shown interest in entering Indian markets. This will further increase the
competition level.
Page 33

34. 1.2.9 PRODUCT/PROJECT PROFILE:
The aim of the study was to understand the reason behind the decrease in sales of their
filter products from their level of expectation and identify the issues & concerns followed by the
suggestions to fill the gap. Lucas-TVS manufacture products such as: Alternators, Headlamp
Washing Systems, Ignition Coils, Motor Bases, Starter Motors, Starters and filters. The main
problem to the company as of now is, the filter products haven‟t reached the sales as the other
products. The filter product has brought in to the market only in the year 2009. Their expectation
of increase in sales was purely because of their brand name. As the end users are mostly
mechanic, Lucas-TVS which has a good brand name in the market purely believe in personal
selling (in the form of dealers) rather than creating awareness by advertising to the end users.
Right now, the company can‟t reach out their expected sales in the market because of various
factors.
The project started with the collection of secondary data for gathering details about the
company and the products produced by them. The initial week is spent by having the experience
of visiting the company and gathering details about the company and by understanding the exact
problem being faced by the company. The observations made on all the members involved
helped in devising the questionnaire. More than nine weeks is spent by doing survey in both
urban and semi-urban areas. The analysis of the data gathered is done and reported to the
industry guide in the final week.
Page 34

35. 2. RESEARCH METHODOLOGY
Page 35

36. 2.1 PROBLEM STATEMENT:
Lucas-TVS haven‟t achieved their expected sales in their filter products which are being
introduced in august-2009. The issues/concerns faced by Lucas-TVS in the sales of filters have
to be identified and promotional strategy for increasing the sales of their filter products.
2.2 OBJECTIVES:
The objectives of study are,
1) To identify the issues/concerns faced by Lucas-TVS in the sales of filters.
2) To analyse the significant difference in opinions between urban and semi-urban areas.
3) To identify the promotional strategy for increasing the sales.
2.3 RESEARCH METHODOLOGY:
The methodology of the study would include conducting research with target audience as
the dealers and mechanics. This includes primary data collection by person administered survey
for analysis and final interpretation of data.
Descriptive research is undertaken in this study to obtain answers to questions of who,
what, where, when, and how. Descriptive research is also desirable when we wish to project a
study‟s findings to a larger population. If a descriptive study‟s sample is representative, the
findings may be used to predict some variable of interest, such as sales.
Finally the tools used in the process of this study are Independent T-test, content analysis
and percentage analysis.
2.3.1 SOURCE OF DATA
The two main sources of data are primary data and secondary data.
2.3.1.1 PRIMARY DATA:
Primary data is a term for data collected on source which has not been subjected to
processing or any other manipulation. Here the questionnaire is considered as the primary data,
Page 36

37. from this questionnaire the opinions of various people is known. The survey is conducted based
on two localities, urban and semi-urban areas.
Data collection methods in questionnaire are,
o Dichotomous form (yes or no).
o Multiple choice questions.
o Ranking based questions.
o Scaling based questions.
o Open ended questions i.e., inviting free response.
2.3.1.2 SECONDARY DATA:
Secondary data is data collected by someone other than the user. The sources of
secondary data include company details, surveys, and organizational records.
2.3.2 SAMPLING PLAN:
The study was conducted as convenient sampling in urban and semi-urban areas. Urban
areas in my survey constitute of Chennai and Kovai. And semi-urban areas constitute of Hosur
and Krishnagiri. The company had provided a sales representative in order to conduct the survey
in the urban areas. The sample size from both urban and semi-urban areas comes around to 225.
Dealers Mechanics TOTAL
Urban 50 100 150
Semi-Urban 25 50 75
TOTAL 75 150 225
Table 4: Sample size of the survey
The table 4 gives the detailed information about the sample size of the survey being
conducted. From the table we can infer that 150 members from urban and 75 members from
semi-urban areas are being surveyed.
Page 37

38. 2.3 TOOLS USED FOR DATA COLLECTION:
The main tool that is being used for the data collection is questionnaire. The
questionnaire was developed after getting in depth knowledge about the given topic from various
people from urban and semi-urban areas.
STATISTICAL TOOL USED:
The role of statistics in research is to furnish a tool in designing research, analyzing its
data and drawing conclusions there from. As well as know that a researcher cannot ignore the
science of statistics. Tools used in the study are as follow.
2.3.1 PERCENTAGE ANALYSIS:
This method is widely used to find the percentage of each of the attribute in the given
question. This is helpful to estimate how many of the respondent support the attribute, it also
clearly state the preference and non preference of the respondent. It is the easy method to find the
respondent likes and dislike.
Formula:
Percentage= (No. of respondent/total respondent)*100
2.3.2 INDEPENDENT T-TEST:
Independent t-Test involves examination of the significant differences on one factor or
dimension (dependent variable) between means of two independent groups (e.g., male vs.
female, with disability vs. without disability) or two experimental groups (control group vs.
treatment group). For example, you might want to know whether there is a significant difference
Page 38

39. on the level of social activity between individuals with disabilities and individuals without
disabilities.
The independent t-test is used in any analysis where:
o There is only one dimension or factor (dependent variable)
o There are three or more groups of the factor (independent variable)
o One is interested in looking at mean differences across two independent groups
2.3.3 CONTENT ANALYSIS:
Content analysis is used to analyze text, including, interview transcripts, newspapers,
books, manuscripts, and Web sites to determine the frequency of specific words or ideas. The
content analysis is a kind of secondary data. The results of content analysis allow researchers to
identify, as well as quantify, specific ideas, concepts, and their associated patterns, and trends of
ideas that occur within a specific group or over time. It provides objective analysis of written
materials and can identify meaning from text data
The main strength of content analysis is to quantify the qualitative data. The content
analysis is very useful in case of open ended responses.
2.4 LIMITATIONS OF THE STUDY:
 The study is based on assumption that all the responses given are true.
 The study is based on the response obtained from the people in urban (Chennai & Kovai)
and semi-urban (Krishnagiri & Hosur) areas in Tamil Nadu. It cannot be generalized for
the whole country.
Page 39

40. 3. ANALYSIS
&
FINDINGS
Page 40

41. OBSERVATION AND ANALYSIS
3.1 QUESTIONNAIRE ANALYSIS:
1) Are you aware of filters produced by Lucas-TVS?
Dealer:
Yes No
Urban 42 8
Semi-Urban 0 25
Table 5: Awareness to dealers about filters produced by Lucas-TVS
84%
45
40
35
100%
30
25 Urban
20 Semi-Urban
15 16%
10
0%
5
0
Yes No
Fig 5: Awareness to dealers about filters produced by Lucas-TVS
Inference:
From the fig 5 we can infer that the awareness about the filter products in Semi-Urban
area is ZERO percent. The picture also depicts that the awareness about the product in urban area
has only 84% and not even reached 100% (This is because of their sales, which is mainly
concerned only with the main retailers and not concerned about the small sized retailers). This
implies that the company has to take some serious steps regarding advertisement of the product
produced by Lucas-TVS.
Page 41

42. Mechanic:
Yes No
Urban 45 55
Semi-Urban 0 50
Table 6: Awareness to mechanics about filters produced by Lucas-TVS
55%
60 100%
45%
50
40
Urban
30
Semi-Urban
20
10 0%
0
Yes No
Fig 6: Awareness to mechanics about filters produced by Lucas-TVS
Inference:
The fig 6 also depicts that the awareness about the product among the main end users is
itself very low. We can infer that even in urban areas, the percentage of unknown users (55%) is
more than the known users (45%). But in the semi-urban areas, the percentage of known
customers is NIL. This implies that they have to take some serious steps for increasing their
awareness about the product to the end users.
Page 42

43. 2) Which brand would you prefer while purchasing filters?
Dealers:
Elofic Fleet Guard Lucas-TVS Purolator Mico
Urban 6 15 4 40 31
Semi-Urban 4 22 0 9 20
Table 7: Preference of dealers towards purchasing filters
80%
40
35 62%
30
88%
25 80%
20 30% Urban
15 36% Semi-Urban
10 12%
16% 8%
5 0%
0
Elofic Fleet Lucas-TVS Purolator Mico
Guard
Fig 7: Preference of dealers towards purchasing filters
Inference:
From the fig 7 we can recognize that Purolator dominates the market share in urban areas
with 80% of the total purchase. Whereas, Fleet guard dominates in semi-urban areas with 88% of
total purchase. But we can also notice that Mico brand stands in second position in both urban
and semi-urban areas with 62% and 80% respectively. This clearly indicates that Mico brand
stands above all in the overall purchase (both urban and semi-urban). We can also infer that the
purchasing of Lucas-TVS brand by dealers is very low in both urban and semi-urban areas. This
indicates that some serious strategies should be adopted as soon as possible to gain the market
share in this competitive market.
Page 43

44. Mechanic:
Elofic Fleet Guard Lucas-TVS Purolator Mico
Urban 15 35 10 74 55
Semi-Urban 3 41 0 16 35
Table 8: Preference of mechanics towards purchasing filters
80 74%
70
55%
60
50 82%
35% 70%
40 Urban
30 Semi-Urban
32%
20 15%
10%
10 6% 0%
0
Elofic Fleet Lucas-TVS Purolator Mico
Guard
Fig 8: Preference of mechanics towards purchasing filters
Inference:
The fig 8 depicts that the customers in urban are more attached towards Purolator brand
and gets the majority of the market share with 74%. Whereas the customers in semi-urban
prefers Fleet guard with the share of 82%. We can also infer that the purchasing of Lucas-TVS
brand by mechanics is very low in both urban and semi-urban areas. This indicates that some
important strategies should be adopted by marketing department as soon as possible to gain the
market share in this competitive market.
Page 44

45. 3) Why do you prefer that brand?
Dealers:
Brand Name Quality Awareness Profit Margin Cust.Pref Others
Urban 33 17 36 3
Semi-Urban 19 0 24 5
Table 9: Reasons for preferring that brand by dealers
40 72%
66%
35
30
96%
25
76%
20 34%
15 Urban
10 20% Semi-Urban
0% 6%
5
0
Fig 9: Reasons for preferring that brand by dealers
Inference:
From the fig 9 we can recognize that the purchasing power of the particular brand mainly
depends up on the customer preference. Both in urban and semi-urban areas we can see that
customer preference gains majority of the share with 72% and 96%. Besides the customer
preference the dealer also prefers quality and profit margin for purchasing the particular brand.
But the dealers also expect some proper relationship and supply to be maintained between them
for purchasing that particular brand.
Page 45

46. Mechanic:
Coup or
Brand Name Quality Awareness points Cust.Pref Others
Urban 100 40 15 30
Semi-
Urban 40 3 45 0
Table 10: Reasons for preferring that brand by mechanics
100%
100
90
80
70
60
90%
50 80% 40%
40 30% Urban
30
15% Semi-Urban
20
6%
10 0%
0
Fig 10: Reasons for preferring that brand by mechanics
Inference:
The fig 10 depicts that most of the mechanic is mainly concerned about the quality of the
product in urban areas. Whereas the quality is considered to be secondary in semi-urban areas
with 80% this is next to the coupons or points with 90%. But some of the other reasons for
preferring that brand are due to proper availability and customers preference towards the brand.
Page 46

47. 4) What influence's customer on purchasing filters?
Dealers:
Quality Price Factor Brand Name Awareness Making Profit Others
Urban 45 0 30 5 15
Semi-
Urban 20 3 15 19 0
Table 11: Dealers opinion on factors influencing customers on purchasing filters
50 90%
40
60%
30
80% 76%
20 60% 30% Urban
Semi-Urban
10 12% 10%
0% 0%
0
Fig 11: Dealers opinion on factors influencing customers on purchasing filters
Inference:
In this data analysis the customer is mechanic most of the times. We can infer from the
fig 11 that the mechanic/customer in the urban areas give more preference to quality 90% rather
than profit 10%. Whereas the mechanic in semi-urban areas the preference given is more or less
equal to both quality 80% and making profit 76% by earning coupons or points.
Page 47

48. Mechanic:
Making
Quality Price Factor Brand Name Awareness Profit Others
Urban 90 15 65
Semi-
Urban 43 10 35
Table 12: Mechanics opinion on factors influencing customers on purchasing filters
90%
90
80
65%
70
60
86%
50
70%
40
Urban
30
15% 20% Semi-Urban
20
10
0
Fig 12: Mechanics opinion on factors influencing customers on purchasing filters
Inference:
In this data analysis the customer is the owner of the particular vehicle. From the fig 12
we can infer that the end users prefer quality and awareness about the particular brand name for
purchasing filters. We can recognize almost 90% of the people in urban and semi-urban areas
give preference to quality and only 15% to 20% of the customers give preference to the price
factor of the particular product. The picture also depict that the second factor but most significant
factor that influence the purchasing behavior is awareness about the particular brand.
Page 48

49. 5) What is your priority given while purchasing filters?
Inference:
The data is been analyzed in the excel sheet and the excel sheet is attached with this
document. The results from the analyzed results are depicted below,
Dealers:
The total survey consists of 75 dealers, out of which 50 are from urban areas and 25 are
from semi-urban areas. The priority is been calculated by the least count method. The dealers in
the urban areas have given more priority to the customer preference. Next to that preference the
availability factor is given more priority. This is followed by profit margin, quality, brand name,
promotional schemes, and at last to the credit period. The dealers in the semi-urban areas also
have given more priority to the customer preference. Next to that preference the availability
factor is given more priority. This is followed by quality, brand name, profit margin, promotional
schemes, and at last to the credit period. One of the main differences between urban and semi-
urban areas is the profit margin factor. In urban areas the profit margin is more prioritized than
quality. But the quality is given more priority than price factor in semi-urban areas.
Mechanic:
The total survey consists of 150 mechanics, out of which 100 are from urban areas and 50
are from semi-urban areas. The mechanics in the urban areas have given more priority to the
quality. Next to that preference the availability factor is given more priority. This is followed by
brand name, customer preference, making profit, promotional schemes, and at last to the credit
period.
The mechanics in the semi-urban areas also have given more priority to the quality. Next
to that preference the making profit is given more priority. This is followed by availability, brand
name, promotional schemes, customer preference, and at last to the credit period. One of the
main differences between urban and semi-urban areas is the profit margin factor. In urban areas
the profit margin is more prioritized than quality. But the quality is given more priority than
price factor in semi-urban areas.
Page 49

50. 6) Have you purchased Lucas-TVS filters?
Dealers:
Yes No
Urban 15 35
Semi-Urban 0 25
Table 13: Purchase of Lucas-TVS filters by dealers
70%
35
30 100%
25
20 30% Urban
15 Semi-Urban
10
5 0%
0
Yes No
Fig 13: Purchase of Lucas-TVS filters by dealers
Inference:
From the fig 13 we can recognize that the purchasing of the filters by dealers in both
urban and semi-urban is very low. In Urban areas low usage is mainly because of very less
customer preference given to the particular product. Another main reason for this reduced
percentage of purchase is the fear of inventory being created if there is no customer preference
towards the product. In the semi-urban areas the purchasing of the product is NIL because of
lack of awareness about the product.
Page 50

51. Mechanic:
Yes No
Urban 20 80
Semi-Urban 0 50
Table 14: Purchase of Lucas-TVS filters by mechanics
80%
80
70
60 100%
50
Urban
40
Semi-Urban
30 20%
20
0%
10
0
Yes No
Fig 14: Purchase of Lucas-TVS filters by mechanics
Inference:
The fig 14 shows that the purchasing of filters in Lucas-TVS in urban is just 20% and
NIL in semi-urban. The reason for this lower percentage of purchase by mechanic in urban areas
is mainly due to lack of awareness of the product. Another main reason is the unavailability of
the product in most of the retailer shops. Some of the mechanics also fear about the duplicity of
the same product available in the market. The reason for Zero% purchase in semi-urban areas is
mainly due to lack of awareness and also the availability of the product is NIL.
Page 51

52. 7) What is your opinion about the usage of Lucas-TVS filters?
The table 15 provides you the list of users who has purchased the Lucas-TVS filters. The
users referred here are both dealers and mechanic. As per the survey only 15 dealers and 20
mechanics have purchased the product. So, their opinion is been figured by scaling method. We
have used the scale of 5 to analyze the opinion about filter product.
Urban
Dealers Mechanics
Q FM P Av PF Q EF F/A Av Aw
2 4 3 2 3 Q-Quality 3 2 2 4 5
2 5 3 1 3 FM-Fast Moving 2 2 3 5 5
3 5 3 2 3 P-Packaging 3 2 3 4 5
2 5 3 1 3 Av-Availability 2 2 3 4 5
2 5 3 1 3 PF-Price factor 3 2 3 4 5
2 4 3 2 3 EF-Ease of fit 2 2 3 5 5
2 5 3 1 3 F/A-Finish/Appearance 3 2 2 4 5
2 5 3 1 3 Aw-Awareness 2 2 3 4 5
3 5 3 2 3 3 2 3 5 5
2 3 3 2 3 Opinion: 2 2 3 4 5
2 5 3 1 3 1- Very Good 3 2 2 4 5
2 4 3 2 3 5- Worst 3 2 3 4 5
3 5 3 2 3 2 2 3 5 5
2 4 3 2 3 3 2 3 4 5
2 5 3 1 3 3 2 3 5 5
33 69 45 23 45 2 2 3 4 5
3 2 2 5 5
3 2 3 4 5
2 2 3 4 5
3 2 3 5 5
52 40 56 87 100
Table 15: Opinion about the usage of filters
Page 52

53. Dealers:
In Urban areas 15 dealers have purchased the filters produced by Lucas-TVS. As per the
opinion given by them in the scale of 5, we can see that availability factor has got the least
counting (23). This depicts that the availability of the Lucas-TVS filter is almost very good. Next
to the availability factor, we can find the quality factor has got the least counting. This infers that
the opinion about the quality factor is good. The main factor that has to be noted here is the Fast
Moving factor. This factor has got the maximum counting (69/75), which clearly indicates that
it‟s not preferred by most of the customer in urban areas.
Mechanic:
In Urban areas 20 mechanics have purchased and used the filters produced by Lucas-
TVS. As per the opinion given by them in the scale of 5, we can see that Ease of fit factor has got
the least counting (40). This indicates that they don‟t find any problem in fixing the filters in
vehicle. Next to the availability factor, we can find the quality factor has got the least counting.
This infers that the opinion about the quality factor is good. The main factors that have to be
noted here are the awareness and availability factor. These factors have got the maximum
counting (100, 87), which clearly indicates that it lacks awareness and availability at shops in
urban areas.
Inference:
According to the opinion given by the dealers and mechanic from the urban areas, we can
infer that the awareness factor to the end user is very worst. Because of this reason the customer
preference towards the product will be very less. Since there is no much of customer preference
the dealers are afraid of inventory being created in future. This is one of the important factors
that have to be noted and rectified as soon as possible by increasing the awareness to the end
users/mechanic.
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54. 8) What type of promotional activity would you prefer for Lucas-TVS?
Dealer:
Providing Discounts Coupons r Points Inc.Profit Margin No Need Others
Urban 15 35 10
Semi-
Urban 23 5 2
Table 16: Promotional activity for Lucas-TVS by dealers
70%
35
30
25 92%
20
30%
Urban
15
20% Semi-Urban
10 20%
5 8%
0
Providing Coupons r Inc.Profit No Need Others
Discounts Points Margin
Fig 15: Promotional activity for Lucas-TVS by dealers
Inference:
As per the fig 15, the dealer in urban areas mainly suggests to increase their profit margin
in the sales of filters. The suggestion by dealers in urban areas is 70%. But the suggestion for
increasing profit is only 20% in the semi-urban areas. But the suggestion for providing coupons
or points to mechanic gains the major percentage in semi-urban areas with 92%.
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55. Mechanic:
Providing Discounts Coupons r Points Inc.Credit Period No Need Others
Urban 76 20 4
Semi-
Urban 47 3 0
Table 17: Promotional activity for Lucas-TVS by mechanics
76%
80
70
60
94%
50
40 Urban
30 Semi-Urban
20%
20
10 6% 4% 0%
0
Providing Coupons r Inc.Credit No Need Others
Discounts Points Period
Fig 16: Promotional activity for Lucas-TVS by mechanics
Inference:
As per the fig 16, the mechanic in both urban and semi-urban areas mainly suggests to
provide coupons or points during the sales of filters. The suggestion for providing coupons in
semi-urban areas is 94% and urban constitutes of 76%. Some mechanic who provides the
authorized service doesn‟t require any sorts of promotional activity for increasing the sales.
Some of the mechanic gave other ideas like providing gifts according to their purchasing power
per month.
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56. 9) Provide your ranking for Lucas-TVS based on its filter products?
Dealers:
Excellent Good Fair Poor
Urban 14 36
Semi-Urban 0 25
Table 18: Dealers ranking based on filter products
40 72%
35
30 100%
25
20 Urban
28% Semi-Urban
15
10
5 0%
0
Excellent Good Fair Poor
Fig 17: Dealers ranking based on filter products
Inference:
According to the fig 17 we can infer that 72% in urban areas and 100% in semi-urban
gave the ranking as poor. This is purely because of the awareness created among the customers is
very low. The awareness created in the urban areas also constitute only to some regular
customers for the purpose of their sales. This clearly indicates that some advertisement strategy
should be adopted by some means for creating proper awareness.
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57. Mechanic:
Excellent Good Fair Poor
Urban 16 84
Semi-Urban 0 50
Table 19: Mechanics ranking based on filter products
90 84%
80
70
60 100%
50 Urban
40 Semi-Urban
30
16%
20
10 0%
0
Excellent Good Fair Poor
Fig 18: Mechanics ranking based on filter products
Inference:
The fig 18 depicts that only 16% of the mechanic in urban areas has voted fair for
providing the ranking for filters produced by Lucas-TVS. This is mainly because of the lack of
availability in all the shops and also because of awareness created for the product is very low
towards the end customers. Also the ranking given by 100% of mechanic in semi-urban areas is
poor. Which is purely due lack of awareness about the product to both dealers and end
customers.
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58. 10) Provide your valuable opinions for Lucas-TVS to improve its sales in filters?
Dealers:
Proper
Inc. Awareness Inc. Avail C or P Inc Prof.Mar Relationship Others
Urban 50 29 15 6 5
Semi-
Urban 25 18 4 0 3
Table 20: Dealers opinion to improve sales of filters
100%
50
45
40
35 58%
30 100%
25 72%
20 30%
15 Urban
10 16% 12% 10%12%
5 0% Semi-Urban
0
Fig 19: Dealers opinion to improve sales of filters
Inference:
According to the fig 19, we can clearly infer that the first and foremost thing that has to
be done is increasing awareness about the product to the end users/mechanic. Next to that, they
have to provide some kind of coupons or points for mechanic for improving their sales in this
competitive market. The company has to mainly take care of this two things in order to capture
the market and increase their sales.
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59. Mechanic:
Inc. Awareness Inc. Avail C or P Offer Gifts Relationship Others
Urban 89 63 19
Semi-
Urban 50 33 44
Table 21: Mechanics opinion to improve sales of filters
89%
90
80
70 63%
60 100%
50 88%
40 66%
30 Urban
19%
20 Semi-Urban
10
0
Fig 20: Mechanics opinion to improve sales of filters
Inference:
From the fig 20, we can clearly infer that the first and foremost thing that has to be done
is increasing awareness about the product to the end users/mechanic. Next to that, they have to
provide some kind of assurance about the availability of the products. But coupons or points for
mechanic has to be provided for improving their sales in this competitive market. The company
has to mainly take care of all the three things in order to capture the market in both urban and
semi-urban and increase their sales.
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60. 11) How often will the company representative visit you?
Dealers:
Once in a month When Needed Never Others
Urban 41 9
Semi-Urban 0 25
Table 22: Visiting of dealers by company representative
45 82%
40
35
30 100%
25
Urban
20
15 Semi-Urban
18%
10
5 0%
0
Once in a When Never Others
month Needed
Fig 21: Visiting of dealers by company representative
Inference:
The fig 21 depicts that the company representative have never visited the semi-urban
areas and even in the urban areas they have visited only when they need to increase their sales.
This clearly indicates that there is no proper relationship being maintained between the company
and dealers. Because of this perception a negative impression is being created on the company.
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61. Mechanic:
Once in a month When Needed Never Others
Urban 74 26
Semi-Urban 0 50
Table 23: Visiting of mechanics by company representative
80 74%
70
60 100%
50
40 Urban
26%
30 Semi-Urban
20
10 0%
0
Once in a When Never Others
month Needed
Fig 22: Visiting of mechanics by company representative
Inference:
The fig 22 depicts that the company representative have never visited the semi-urban
areas and even in the urban areas they have visited only 74% of the customers when they need to
increase their sales. This clearly indicates that there is no proper relationship being maintained
between the company and mechanics in both urban and semi-urban areas. Because of this
perception a negative impression is being created on the company.
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62. 3.1.12 Significance Test:
Significance test has to be done to check whether there is any significant difference in the
opinion given by the people during the survey. Here, I am using independent T-Test for checking
whether there is any significant difference in the opinions between urban and semi-urban areas.
3.1.12.1 T-Test:
The t test is a statistics test generally used to determine whether the means of two
populations are different. In the t test, a t value is calculated based upon the difference in the
means and variances of samples drawn from each of the two populations. This t value is then
compared to a critical t value, which is based upon your required level of certainty (perhaps you
need to be at least 95% certain of the outcome) and the degrees of freedom present in the test. If
the t value is greater than the critical t value, you can state that the 2 means are different, within
your required degree of certainty.
1) By the independent t-test, we have to analyze whether there is any significant difference
between urban and semi-urban areas in terms of making profit by mechanic during the purchase.
Null Hypothesis H0:
H0: μ1 = μ2
There is a no significant difference between urban and semi-urban areas in terms of
making profit by mechanic during the purchase.
Alternate Hypothesis Ha:
Ha: μ1 ≠ μ2 (μ1 < μ2 or μ1 > μ2)
There is significant difference between urban and semi-urban areas in terms of making
profit by mechanic during the purchase.
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