A STUDY ON CONSUMER BEHAVIOUR AND SALES PROMOTION

FOR TVS MOTOR COMPANY LIMITED

PROJECT REPORT

Submitted to the
Department of management studies in the
FACULTY OF ENGINEERING AND TECHONOLOGY

In partial fulfillment of the requirements

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

HARISH.B
REG.NO.35104117

Under the guidance of

Dr.G.Ramanaiah, .M.COM, M.F.M., M.B.A Ph.D.
PROFESSOR, SRM SCHOOL OF MANAGEMENT

SRM SCHOOL OF MANAGEMENT

SRM INSTITUTE OF SCIENCE AND TECHNOLOGY
(Deemed University)
CHENNAI
(May 2006)
 ACKNOWLEGEMENT

• I would like to express my sincere thanks to our beloved principal for giving me
an opportunity to carryout this project

• I am very grateful to the Dean of S.R.M SCHOOL OF MANAGEMENT

STUDIES, Mrs.JAYASHREE SURESH who encouraged me during the
course of the project

• I extend my gratitude to my resourceful guide Dr.G.RAMANAIAH faculty of

Department of management studies, for his moral support, encouragement,
valuable suggestions and last but not least his excellence guidance that he had
offered sight thought the project.

• It gives me immense pleasure to express my heartfelt gratitude to Mr.SETHU

RAMAN, TVS MOTOR COMPANY LTD (CHENNAI) for giving me
permission and an opportunity to work and also giving me all the necessary aids
required for the successful completion of the project.

(Harish)
TVS SCOOTY TVS STAR CITY TVS SCOOTY PEP
TVS STAR TVS VICTOR GX TVS VICTOR EDGE

TVS FIERO FX TVS FIERO F2 TVS VICTOR GLX

TVS XL SUPER TVS CENTRA TVS APACHE

CONTENTS
CHAPTER PAGE.NO

I Introduction 2
Statement of problem 3
Objectives of study
Hypothesis 6
Sample Scheme 7
Period of study 8
Methodology
9
9
(A) Data collection
 (B) Questionnaires design

Limitations 10
Scope of the study 10
Chapter Arrangements 11
Methods and Tools Of Analysis 11

II THEROTICAL SETTINGS
Review of Literature 15
Company Profile 21
Product Profile 24

III DATA ANALYSIS AND CONCLUSION 27

IV FINDINGS AND SUGGESTION 68

CONCLUSION 72
ANEXURE 73
BIBLIOGRAPHY 82

LIST OF TABLES

TABLE PAGE
NO DESCRIPTION NO

1 Occupation of Consumers 27

2 Gross Family Income Of Consumers 29

3 Monthly Spending On Motorcycle 31

4 Two-Wheelers previously preferred by the consumer's 33

5 Reasons for shifting from the previous two wheelers 35

6 Current Preference of consumer's 37

7 Criteria for decision-making 39

8 Consumers rating of their motorcycle advertisement 41

 9 Engine power of motorcycle 43

10 Feature disliked by the Consumers in their Motorcycles 45

11 Servicing Facilities offered by the companies -consumer's opinion 47

12 Servicing intervals 49

13 Kilometers Traveled per month(in average) 51

14 mileage offered 53

15 Consumers will to respond to exchange melas 55

16 Consumers Expectation about the bike 57

17 Consumers Expectation about the service of the bike 59

18 Decision making Criteria of the consumers 61

19 Income Level and attracting features 62

20 Income level and number of Km .Traveled per month 63

21 Cross Tabulation (Age group vs. Bikes) 64

Cross Tabulation ( Income level vs. Number of Km.Travelled per
22 month) 65

TITLE OF THE CHARTS

TABLE PAGE
NO DESCRIPTION NO

1 Occupation of Consumers 28

2 Gross Family Income Of Consumers 30

3 Monthly Spending On Motorcycle 32

4 Two-Wheelers previously preferred by the consumer's 34

5 Reasons for shifting from the previous two wheelers 36

6 Current Preference of consumer's 38

7 Criteria for decision-making 40

8 Consumers rating of their motorcycle advertisement 42

9 Engine power of motorcycle 44

10 Feature disliked by the Consumers in their Motorcycles 46

11 Servicing Facilities offered by the companies -consumer's opinion 48

12 Servicing intervals 50

13 Kilometers Traveled per month(in average) 52

14 mileage offered 54

15 Consumers will to respond to exchange melas 56

16 Consumers Expectation about the bike 58

17 Consumers Expectation about the service of the bike 60

INTRODUCTION

“We may talk as long as we please about manufacturers wholesalers and retailers but in
last analysis consumer is the king”-Parlin

In today’s context marketing has become the toughest task to carryout. In recent days
marketing theory has turned to the development of models of buyers behavior and the
structure of the markets .Companies both in domestic and international markets fought a
very stiff competition .When it comes to the marketing of consumers products the
competition becomes tougher and the companies are trying out all possible strategies to
capture markets.

Today’s markets are absolutely ruled by the consumer and consumer satisfaction has
become the prime task of marketers. Consumers determine the brands that should survive
in the markets. Companies that win the confidence of consumer wins the markets and the
companies that lose the confidence of consumers lose the markets. Hence constant efforts
are made by the companies to know the tastes and preference of the consumers who are
the rulers in the marketers.

This task is successfully performed by the research and development department of

companies by applying various techniques of studying the consumer behavior like
markets surveys etc. This study of researcher is an effort towards this cause i.e to study
what motivates a consumer to prefer a particulars brand among the available alternative
brands in the segments of motorcycles.
THE HISTORY OF MOTOR CYCLES:

The invention of motor cycles dates back to the latter half of the eighteenth century.
One of the first motorcycles was the stream driven velocipede invented in 1866 by
WW.AUSTIN of WITHROP MASS.GOTTLIER DAMLIER of germane invented the
real motor cycle. He attached a four-cycle piston to a bicycle frame in the year 1885.This
invention of motor cycle was very useful scientific invention and motorcycles have
become the main source of personal transportation mode for all age groups particularly
youth these days.

STATEMENT OF PROBLEM:

Motor cycle industry is one of the few industries in growth phase today. A consumer
who wants to be mobile today considers personal transportation as one of his basic needs.
Motor cycles satisfy this need immensely. This fact could be clearly from the data
recorded as the share of motor cycles in the two wheeler industry has grown from 26 %
in 1988-89 to 48% in 1998-99.Motor cycles have also become very common among our
large middle class population.

To study the reasons for this success story recorded by motorcycles in a span of a
short period the study of consumer preference for motor cycles will be of great use .The
study gains importance since it could throw light on the reasons for the growth of motor
cycle’s industry.

Definition of sales promotion

An activity designed to boost the sales of a product or service. It may include an

advertising campaign, increased PR activity, a free-sample campaign, offering free gifts
or trading stamps, arranging demonstrations or exhibitions, setting up competitions with
attractive prizes, temporary price reductions, door-to-door calling, telemarketing, and
personal letters on other methods”. More than any other element of the promotional mix,
sales promotion is about “action”. It is about stimulating customers to buy a product. It is
not designed to be informative – a role which advertising is much better suited to. Sales
promotion is commonly referred to as “Below the Line” promotion.

Sales promotion can be directed at:

• The ultimate consumer (a “pull strategy” encouraging purchase)

• The distribution channel (a “push strategy” encouraging the channels to stock the
product). This is usually known as “selling into the trade”
Methods of sales promotion

There are many consumer sales promotional techniques available they are

• Price promotions
• Coupons
• Gift with purchase
• Competitions and prizes
• Money refunds
• Frequent user / loyalty incentives
• free travel, such as free flights

Sales promotions can be directed at the customer, sales staff, or distribution channel
members (such as retailers). Sales promotions targeted at the consumer are called
consumer sales promotions. Sales promotions targeted at retailers and wholesale are
called trade sales promotions.

Definition of CONSUMER BEHAVIOUR.

Consumer behaviour is the study of how people buy, what they buy, when they buy and
why they buy. It is a subcategory of marketing that blends elements from psychology,
sociology, sociopsychology, anthropology and economics. It attempts to understand the
buyer decision making process, both individually and in groups. It studies characteristics
of individual consumers such as demographics, psychographics, and behavioral variables
in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.

Consumer Behaviour is defined as "the dynamic interaction of affect and cognition,

behaviour, and environmental events by which human beings conduct the exchange
aspects of their lives." More generally, Consumer Behaviour is the psychology behind
Marketing and the behaviour of consumers in the Marketing environment.

According to the American Marketing Association, Consumer Behavior is defined as

"the dynamic interaction of affect and cognition, behavior, and environmental events by
which human beings conduct the exchange aspects of their lives." More generally,
Consumer Behavior is the psychology behind Marketing and the behavior of consumers
in the Marketing environment. Two major psychological disciplines come into play when
observing and trying to explain Consumer Behavior. The first is Cognitive Psychology.
Cognitive Psychology is the study of all knowledge related (mental) behaviors. The
Attention, Perception, Memory/Comprehension, and Decision Making links on this
website are the various aspects of cognitive psychology that play an important role in
Consumer Behavior. The second psychological discipline that has theories to explain
certain phenomenon of Consumer Behavior is Social Psychology. Social Psychology is
"the study ofthe manner in which the personality, attitudes, motivations, and behaviors of
the individual influence and are influences by social groups" this is also an area of
interest.

OBJECTIVE

GENERAL OBJECTIVE:

To study the behavioral pattern of consumers, with regard to motor cycles in Chennai
Corporation.

SPECIFIC OBJECTIVES:

1 To know the factors motivating a consumer to prefer a particular motorcycles

among other available alternatives.

2 To study the role of advertisements, in persuading a consumer to buy a motor

cycle.

3 To know the market leader and market share of major competitors in the motor
cycle market.

4 To know the decision-making criterion used by the consumers in deciding to

purchase a motor cycle.

5 To know the purpose for which the consumers used the motor cycle most often.
SAMPLE SCHEME:

Since the study strictly confines to the household consumers of Chennai city,non
probability sampling method has been used from which convenience sampling technique
is adopted.

PERIOD OF STUDY

The research work “A STUDY ON CONSUMER BEHAVIOUR AND SALES

PROMOTION AT CHENNAI. Was carried on from Febrauary2006 to April 2006 in
Chennai only.

METHODOLOGY

The research design is the basic plan that guides the data collection and analysis phases
of the research project. It is the framework that specifies the type of information to be
collected, the sources of data and the data collection procedure .The objective of the
research project logically determines the characteristics determined in the research
design.

RESEARCH DESIGN:

Descriptive Research design is followed in this project. This is typically concerned with
determining the frequency with which something occurs or how two variables vary
together .Besides these, it helps to describe the characteristics of certain groups, to
estimate the proportion of people in a specified population, to make specific predictions
and to determine whether certain variables are associated.

DATA COLLECTION METHOD:

Since the secondary data obtained was not sufficient to proceed with the work, primary
data collection was necessary .The primary data collection was done through the personal
contact method, as the study emphasized to find out the attitude of the consumers.

TARGET GROUP

The study is confined to household consumer of Chennai City only.

QUESTIONNARIE DESIGN:

Structured Undisguised questionnaire was used in the study for the purpose of data
collection .Both close-end and open-end questions are used in this questionnaire because
the statement of alternatives in the close –end questions allows the respondent in
recalling and formulating the answer and in the open –end questions the respondents has
got the freedom to express his views in his own words pertaining to any aspect of the
issue raised.

Research Area.

The Survey was carried out in Chennai localities like.

¾ Adyar

¾ Tambaram

¾ Chengalpatu

¾ Anna salai

¾ Annanagar

LIMITATIONS:

1 The results could not be applied widely without making appropriate changes for
cultural and regional expectations since the study was conducted in limited area.

2 The period within which the study was completed is also very small .The
accuracy of the results is limited because of very small sample size.

3 The money and other resources at the disposal of the researcher were limited and
a detailed study was not possible.

SCOPE OF THE STUDY

1 The study could be used in designing the motorcycles to the expectations of

consumers.
 2 The study could throw a light on the success of present day advertisements for
motorcycles.

3 The study could help to know how much money the consumers could spend for
their motorcycles.

CHAPTER ARRANGEMENTS

The chapter arrangements in this research report are being divided in to four sections of
the report consists of introduction about the research work ,the problem statement for
carrying on the research work, the sample scheme and methodology ,the scope and
limitations in doing the research work .

The second section consists of the literature review, the profile of the company and the
product profile .The third section is wholly dedicated to the data analysis and
interpretation and conclusion .The final part of the research report consists of the findings
and recommendations given by the researcher to the company.

OPERATIONAL DEFINITIONS:

The operational definitions of the statistical tools used are given below.

9 Chi –Square test-Independence of attributes.

A chi-square test of statistical independence is employed when the researcher wants to

know whether there are associations between two or more variables in a given study.
Two variables are statistically independent if knowledge of one would offer no
information as to the identity of the other. The concept of independence is really central
not only to the Chi- Square statistic but to all association measures.

9 Two Way Analyses Of Variances

The analysis of variance in such problems where the researcher wants to test for the
significance of the differences between two sample means. In One –Way classification,
data are classified according to one criterion. The null hypothesis takes the form Ho:
µ1=u2 =u3 =u k, i.e., the arithmetic means of the population from the k samples are
randomly drawn, is equal to one another. ANOVA stand for Analysis for Variance, the
generic name given to a set of techniques for studying cause-and-effect of one or more
factors (independent variable) on a single dependent variable .The analysis of Variance
technique is used when the independent variables are of nominal scale (categories) and
the dependent variable

is metric (continuous) .The application areas in marketing research for experiments using
ANOVA as the analytical method are wide. Whenever a marketing mix variable
(independent variable) such as price, a specific promotion of type of distribution, even
specific elements like shelf space, or colour, of packaging and so on is changed, We
would want to know its effect .Under proper conditions, as experiment can tell us the
effects of specific variations in one or more elements of the marketing mix.

This particular design is used when there is only one categorical independent variable and
one dependent (metric) variable. Each category of an independent variable is called a
level. The independent variable may be different levels of prices, or different pack sizes,
or different product colours, and effect (dependent variable) could be sales of the product.
In this type of design, we random ally allocate the various sampling elements to the
different levels of the independent variable and measure the resulting dependent variable
.Then, we conduct an F-test under the ANOVA to test the null hypothesis that the mean
values of the dependent variable are not significally different from each other, at different
levels of the independent variable. If the computer output from the F-test shows a
significance level (p-value) of less than .05 on the ANOVA table, the null hypothesis is
rejected .If the P-value from the F-test is greater than or equal to 05, the null hypothesis is
accepted .Thus, if the P-value from the F-test is less than 05 .It proves at the 95 percent
confidence level that variation in the independent variable is able to cause significant
variation in the dependent variable. That is one variable depends on the other, assuming
other variables are not in the picture.

A randomized block design is used, if there is an additional variable (called the block)
which has an impact on the relationship between the independent and dependent
variables. This variable is accounted for in the design of a randomized block design by
explicitly changing the levels of the block and testing if that has an impact on the
relationship between the independent and dependent variables .An example of this is the
day of the week having an impact on the relationship between type of display ina store
(independent variable) and sales (dependent variable).Another example is the magazine
in which an advertisement appears (block) affecting the impact (dependent variable) of
different versions of the ad (independent variable).

If two or more independent variables are to be tested through an ANOVA ,we use a
factorial design, because each independent variable in ANOVA is also known as a factor
.The factorial design can accommodate several factors(independent variables) at several
levels (categories)each. The major difference in analysis factorial design with two or
more factors is that interactions of two or three factors among themselves form a separate
effect. These interaction effects need to be tested along with the main effects of
individual factors. This is quite easy to do on computer, but care should be taken to
assign sampling units or elements to each combination of the factors being tested for their
effects. The interaction effects should first be looked at see if they are significant (p-value
less than 05 on the ANOVA table).which would on the analysis may stop there. If not, we
must also look at the results of the individual factor F-test (called the main effects) to
check if the factors individually have an effect on the dependent variable.

LIKERT SCALE:

In Likert’s method, the respondents is asked to rate each statement on the basis of
strength of personal feelings towards it. While applying Likert scale for research project,
the statements are selected from a larger list that has been evaluated by a panel of judges.
The statements finally chosen are those for which there is a greatest among the judges in
terms of scores assigned.

THEORITICAL SETTINGS

Motor cycle Industry in India –An Overview

Important players in Indian Motor Cycle Markets:

Hero Honda:

The company is the collaboration between the world’s largest motor cycle manufacturer
and the largest manufacturers of bicycles. Hero Honda is today the largest selling Indian
motor cycle and the most Fuel efficient in the category .Excellent marketing also helped
Hero Honda establish as an Leading player in the motor cycle market .It operates the
mobile work shop’s in deep interiors of the country .It has an efficient dealer network
across the country to facilitate the purchase .Hero Honda motors have recently turned its
attention overseas and the exports have been steadily on the rise ,The company also
discharge its social obligations by operating a mobile dispensary van I service of those
living within a 10 km radius of its plan and others similar facilities.

YAMAHA
 Yamaha is originally a Japan based multinational company incorporated in 1887 .It was
producing reed organs initially and now it has become the world’s largest manufacturer
of musical instruments, leading producer of audio visual products and other products.
Yamaha now owns 44 subsidiaries and representative offices in overseas market. It has
started its subsidiary unit in America, in 1960 and since the have expanded its market
share all over the world .The Yamaha motor corporation Ltd ,begun in 1955 is the major
part of the Yamaha group .But is a separately managed business entity from Yamaha
corporation. The Yamaha motor corporation is the second largest manufacturer of motor
cycles in the U.S called Yamaha motor Corporation U.S.A that is handling not only
motor cycle, but also snowmobiles, golf court, outboard engines and water vehicles under
the brand name of Yamaha.

TVS

The Tvs was initiated by thriu.T.V sundaram Iyengar, by introducing a first ever rural bus
service operate between madurai and devakottai in the state of Tamil nadu .Tvs started its
first production of two wheelers .This move was the result of the vision of the late
Mr.T.S.Srinivasan, the founder of Sundaram Clayton-a TVS Group Company in 1982
Indian Motor cycle Pvt, Ltd, was incorporated to manufacture motor cycle in
collaboration with Suzuki Japan. During the year 1992-1994, company have launched a
series of new vehicles including scooty,samurai,shoghun, max100,victor,star city,
apache.

BAJAJ

The bajaj group was founded by Mr.Jamnalal Bajaj.The Company Gained fast
momentum when the elder son Jamaal Bajaj took over the diversified the production in to
various manufacturing activities and elevated the group to the status it is enjoying now
,From 1968,Rahul Bajaj is the CEO of bajaj group .Bajaj is currently the India’s largest
two and three wheeler manufacturer is one of the biggest in the world by now Bajaj had
been become as one of the competitor in the two wheelers ,in Indian market.

CURRENT TRENDS:

India is highly populous country with the huge middle class population .Two Wheelers
are becoming a most common mode of transport for middle classes.

India is the world’s largest two wheelers market with its 3.1 million motorized bi
wheelers sold .Current SALES REPORTS

JANUARY
TVS MOTOR COMPANY REPORTS TURNOVER OF Rs. 883.38 CRORES ,
RECORDS 8.4% GROWTH.PBT Rs. 45.03 crores at 7% growth & PAT Rs. 31.06 crores
at 10% growth TVS Motor Company recorded a turnover of Rs. 883.38 crores in the
third quarter ended December 2005 compared to Rs. 815.23 crores achieved in the
corresponding period last year, registering a growth of 8.4%. The total two wheelers sold
in Quarter Three ended December 2005 was at 358,559 units compared to 322,412 units
in the same period last year, recording a growth of 11.2%. The concerted efforts have
helped the company to improve its market share in motorcycles to 13.3% at the end of the
third quarter compared to 12.6% in the first quarter of this fiscal year.

In December 2005, the company achieved a new milestone with the launch TVS Apache.
This stylish and performance driven motorcycle has already won good reviews from
several two-wheeler experts. Apache won three “best bike of the year” awards by CNBC
TV18 AUTOCAR India, OVERDRIVE and Business Standard Motoring. On design
front too the Apache won two top awards namely “best design of the year” by BBC Top
Gear and “best indigenous design of the year” by OVERDRIVE. TVS Apache was
showcased at the Auto Expo 2006 in New Delhi and the response has been very
encouraging. TVS Apache will be available in key markets by the end of February 2006
and with this launch the company will gain significant volumes and improve its presence
in the premium segment of motorcycles.

TVS StaR City continued to receive good response across all markets and has enabled the
company to make significant inroads in the economy segment of the motorcycle market
and TVS StaR has crossed the 50,000 units mark per month.Scooty Pep+ won the best
“Scooter of the year award 2006” by OVERDRIVE and it continues to be a dominant
player in the ungeared scooter category. The total two wheelers sold in nine months
ended December 2005 was at 991,514 units compared to 870,845 units in the same period
last year, recording a growth of 13.9%.
FEBRAUARY

TVS Motors records 25% growth in motorcycles in January,Overall 2-wheeler growth

20%Beginning the New Year on a spirited note, TVS Motor Company has recorded a
growth of 25% in the number of motorcycles sold during January 2006 over the
corresponding period in the previous year. The total motorcycle sales in January 2006
stood at 69,278 units compared to 55,639 units recorded during January 2005.The
company’s total two wheeler sales in January 2006 clocked 112,909 units compared to
94,467 units in January 2005 recording a growth of 20%.

The performance in January 2006 represents the shape of things to come in the coming
months. While the performance of new brands launched last year, in particular, StaR City
continue to beat expectations, TVS Apache, the new 150 CC motorcycle in the premium
segment promises to be a winner as it has already won several coveted awards for its
overall performance and style.

TVS Apache performed a hat trick last month by winning the “best bike of the year”
award from CNBC TV18 AUTOCAR India, OVERDRIVE and Business Standard
Motoring. TVS Apache also won two top design awards namely “best design of the year”
by BBC Top Gear and “best indigenous design of the year” by OVERDRIVE. TVS
Apache was showcased at the Auto Expo 2006 in New Delhi, and elicited encouraging
response from the visiting public. The new motorcycle will be available in key markets
by the end of February 2006 and with this launch the company plans to gain significant
volumes and improve its presence in the premium segment of motorcycles.

TVS StaR City is amongst the few bikes that have crossed the sale of 50,000 units per
month. StaR City has enabled the company to make significant inroads in the economy
segment of the motorcycle market. TVS Scooty recorded 17,957 units in January 2006
compared to 14,724 units in the same period last year recording a growth of 22%. Scooty
Pep+ won the best “Scooter of the year award 2006” by OVERDRIVE and it continues to
be a dominant player in the ungeared scooter category.

In the export front, TVS Motor Company continued its robust performance having
exported 6,374 units in January 2006. Exports recorded a growth of 147% compared to
the same period last year.

MARCH

Aggregate sales touch 108,923 units

The upward sales trend in motorcycles continued for TVS Motor Company (TVS M) in
February 2006 as it posted a growth of 16%. The motorcycle sales recorded 66,391 units
in February 2006 compared to 57,009 units in February 2005. With the launch of TVS
Apache, TVS expects to close this year with a growth of 18% in motorcycle sales and the
highest volumes ever achieved in the history of TVS Motor Company.

The strong growth in motorcycles has pushed the sales of total two wheelers units in
February 2006 to 108,923 units compared to 96,020 units recorded last year, a growth of
13%.

During February, TVS StaR City continued its steady growth and together with the StaR
brand has helped TVS M garner over 27 per cent market share in the economy segment.
The economy segment accounts for about 39 per cent of the total motorcycle category.

TVS Apache, the new 150 cc sensation and the winner of three ‘bike of the year’ awards
by leading Auto Magazines received overwhelming response in Chennai where the
commercial launch was commenced in late February. TVS Apache will be available in
other key markets in phased manner and the company hopes to gain significant volumes
and improve its presence in the premium segment of motorcycle market.

In scooters, different variants of TVS Scooty clocked 16,052 units of sales in February
2006 compared to 15,900 units. On the export front, TVS continued with its growth trend
with export of 6,007 vehicles in February 2006, a growth of 73% compared to the
corresponding period in the previous year.

TVS Motor Company Limited, the flagship company of the USD 2.7 billion TVS Group,
is the third largest two-wheeler manufacturer in India and among the top ten in the world,
with an annual turnover of over USD 740 million. The company is the only two-wheeler
manufacturer in the world to be honoured with the hallmark of Japanese Quality – The
Deming Prize for Total Quality Management.

TVS Motor Company continues to make rapid strides with a record of 16 per cent last
month during this fiscal. The motorcycle sales recorded 66,391 units in February 2006
compared to 57,009 units in February 2005. With the launch of TVS Apache, TVS
expects to close this year with a growth of 18 per cent in

motorcycle sales and the highest volumes ever achieved in the history of TVS Motor
Company.The strong growth in motorcycles has pushed the sales of total two wheelers
units in February 2006 to 108,923 units compared to 96,020 units recorded last year, a
growth of 13 per cent. During February, TVS StaR City continued its steady growth and
together with the StaR brand has helped TVS M garner over 27 per cent market share in
the economy segment. The economy segment accounts for about 39 per cent of the total
motorcycle category. TVS Apache, the new 150 cc sensation and the winner of three
'bike of the year' awards by leading Auto Magazines received overwhelming response in
Chennai where the commercial launch was commenced in late February.

The motorcycle sales recorded 66,391 units in February 2006 compared to 57,009
units in February 2005. With the launch of TVS Apache, TVS expects to close this year
with a growth of 18 per cent in motorcycle sales and the highest volumes ever achieved
in the history of TVS Motor Company. Motor Company exported 18,205 units of two
wheelers in the third quarter of this fiscal year as against 12,253 units sold during the
same period last year registering a growth of 49%. The exports in the nine months ended
December 05 stood at 61,320 units compared to 36,666 units recording a growth of 67%.
ABOUT TVS MOTOR COMPANY

TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-
wheeler manufacturers. With a turnover of over Rs 2800 crore ($574.94 million), the
company manufactures a wide range of motorcycles, scooters, mopeds and scooterettes.

TVS Motor Company Limited is one of the largest two-wheeler manufacturers and also
among the fastest growing companies in the country. It is the largest manufacturer of sub
100cc (50cc, 60cc & 70cc category)
2-wheelers in the world. It has the unique distinction of having sold nearly 4 million
mopeds the highest ever in India. It exports its range of products to 17 countries
worldwide. The company has 4,000 highly motivated employees working in two
manufacturing plants in Hosur and Mysore.

The company manufactures motorcycles, mopeds, scooterettes and scooters. Today, there
are over thirty companies in the TVS Group, employing more than 40,000 people
worldwide and with a turnover in excess of USD 2.2 billion.

With steady growth, expansion and diversification, TVS commands a strong presence in
manufacturing of two-wheelers, auto components and computer peripherals. We also
have vibrant businesses in the distribution of heavy commercial vehicles passenger cars,
finance and insurance. was established in 1911 by Shri. T V Sundaram Iyengar. As one of
India’s largest industrial entities it epitomizes Trust, Value and Service. TVS Motor
Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third
largest two-wheeler manufacturer in India and among the top ten in the world, with an
annual turnover of over USD 650 million.

The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll
out of TVS 50, India's first two-seater moped that ushered in an era of affordable
personal transportation. For the Indian Automobile sector, it was a breakthrough to be
etched in history.

TVS Motor Company is the first two-wheeler manufacturer in the world to be

honored with the hallmark of Japanese Quality – The Deming Prize for Total
Quality Management.

Milestones

Many firsts

9 India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980.
 9 First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept
1984.

9 Launched India's first indigenous Scooterette (sub-100cc variomatic scooters),

TVS Scooty in June 1994.

9 Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun
in Dec 1996.

9 Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.

9 Launched TVS Fiero, India’s first 150 cc, 4 stroke motorcycles in April 2000.

9 Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; India’s first
fully indigenously designed and manufactured motorcycle.

9 Launched TVS Centra in January 2004, a world-class 4-stroke 100 cc motorcycle

with the revolutionary VT-i Engines for best-in-class mileage.

9 Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough
terrain.

NETWORK

TVS Motor Company has one of the most extensive networks with over 500 dealers and
2500 Customer touch points. We are the first in the two-wheeler industry to measure
customer satisfaction, audited by external consultants of international repute.

We have taken care to standardize facilities across all customer touch points. Up
gradation of facilities and continuous improvement in all processes is given importance.
The company also takes an active part in imparting training and capability building in all
areas including sales, service and business management.

All our dealers are connected through the extended network of SAP, ensuring operational
efficiency.

Supply Chain Management

Forming the inner rung of the extended TVS family, our suppliers are involved at every
stage of product development.
We extend core values and best practices to all our suppliers. Through continuous
training forums we impart TPM (Total Productivity Maintenance) and JIT (Just in Time)
practices.

Our suppliers are committed to quality through continuous improvement and up

gradation of processes. This has helped them obtain prestigious international
certifications like ISO 9000, QS 9000 & TS 16949.

We also facilitate knowledge sharing by reputed international consultants in order to

build & enhance management expertise within our supplier base.

PRODUCT PROFILE:

The TVS products are very use friendly. There are various kinds of vehicles are there in
TVS brand. So the customers can able to purchase the vehicle according to their wish.

TVS 50

This has engine capacity of 50cc it’s very comfortable for lower class and middle class
people .We can able to ride this vehicle on any kinds of road .This can be serviced by
ordinary mechanics to professionals and even owners.

TVS SCOOTY

This has as an engine capacity of 80cc .It’s very comfortable for ladies. Because of its
low maintenance, good mileage and favor price. In scooters, different variants of TVS
Scooty clocked 16,052 units of sales in February 2006 compared to 15,900 units.

TVS VICTOR

This is a four–stroke bike with the engine capacity of 110cc.highly mileage of 70

km\liter .The feature involved in the customer purchase was style,colour,performance etc.
This bike having special technology of mode indicators (Economy, Power).This is a
fastest moving bike among TVS motors.

TVS APACHE

This is a four –stroke bike with the engine capacity of 150cc. The company claimed that
Apache would give 60 km per liter on normal conditions. Apache is powered by 13.5
Brake Horse Power (BHP) engine. Apache will sports wide tyres in black alloy wheels of
17-inch in the front and 18-inch at the rear to facilitate greater road grip. Apache comes
with an Inductive Digital Ignition (IDI) technology that gives a host of benefits to the
rider including excellent engine response, consistent fuel economy and good 'cold start
ability'. The Business Standard Motoring Bike of the Year 2006 is the superb new TVS
Apache.

TVS STAR CITY

This is a four–stroke bike with the engine capacity of 100cc.highly mileage of 70 km\liter
.The feature involved in the customer purchase was style,colour,performance etc..This is
a fastest moving bike among TVS motors in both urban and rural areas. During February,
TVS StaR City continued its steady growth and together with the StaR brand has helped
TVS M garner over 27 per cent market share in the economy segment. The economy
segment accounts for about 39 per cent of the total motorcycle category.

DATA ANALYSIS AND INTERPRETATION

Nature of the Number of Consumers PERCENTAGE (%)

occupation
Self employed 20 20
Professional 12 12
Government employee 45 45
Private employee 23 23
TOTAL 100 100.0
Source: computed.

INFERENCE

The above table shows occupation of sample consumers. Government employees

constitute the majority with 45% share.20% of consumers are self employed, 23% of
consumers are employed in private concerns, where as only.12% of consumers are
professional
 OCCUPATION OF THE RESPONDENTS

Self employed
Professional
Government employee
10% Private employee
6%
TOTAL

49% 23%

12%
 GROSS FAMILY INCOME OF THE CONSUMERS

Range of Income Number of consumers PERCENTAGE (%)

Up to Rs 5000 11 11
5000-10,000 42 42
10,000-15,000 30 30
15,000-Above 17 17
TOTAL 100 100.0

INFERENCE

The table brings out the gross family income of the sample consumers earn 5000-10,000
per month .They constitute the majority of mobile owners11% of consumers same
earning 5000 and below per month .30% of consumers earn above 10,000 per month.
 INCOME LEVELS OF THE RESPONDENTS

250
NO.OF RESPONDENTS

200

150
PERCENTAGE (%)
Number of consumers
100

50

0
Up to Rs 5000-10,000 10,000- 15,000- TOTAL
5000 15,000 Above
SALARY P.M

MONTHLY EXPENSES ON MOTOR CYCLE

RANGE OF EXPENDITURE NO.OF CONSUMERS PERCENTAGE (%)

UP to Rs 250 51 51
250-500 34 34
500-1000 10 10
1000 and above 5 05
TOTAL 100 100

INFERENCE

From the above table shows 34% of peoples spend Rs 250-500p.m ,51% spend up to Rs
250 pm towards their motor cycle.10% of consumers have a monthly expenditure of Rs
500-1000 p.m for motor cycles .Only 5 consumers out of 100 consumers spend 1000 and
above for their motorcycles.
 MONTHLY EXPENSES ON MOTOR CYCLE

26%
UP to Rs 250
250-500
500-1000
49% 1000 and above
17% TOTAL
3% 5%

TWO WHEELERS PREVIOULY PREFERED BY THE CONSUMERS

Brand name No. Of Consumers Percentage

Mopeds 32 0.32
Scooters 28 0.28
Cycle 20 0.20
Motor Cycle 16 0.16
Nothing 4 0.4
Total 100 100
Source: Computed

INFERENCE

From the above table shows that majority of the sample consumers have used mopeds
before purchasing their brand.28% of consumers have preferred scooters, 14% consumers
have directly purchased the motorcycles.
 TWO WHEELERS PREVIOULY PREFERED BY THE
CONSUMERS

4%
16%
32% Mopeds
Scooters
Cycle
20% Motor Cycle
Nothing

28%

REASONS FOR SHIFTING FROM THE PREVIOUS TWO WHEELERS.

Reasons No. Of Consumers Percentage

Fuel economy 52 0.52
Better engine power 21 0.21
More comfortable and sophisticated 15 0.15
Other reasons 12 0.12
Total 100 100

Source: Computed

INFERENCE

From the above table we can infer that most of the consumer i.e. 52% has shifted from
the previous two wheelers for the fuel economy. Comfort ability and sophistication was
the reasons given by 15% of consumers 21% consumers either for better engine power
and12% of consumers have other reasons for making the shift.
 REASONS FOR SHIFTING FROM THE PREVIOUS TWO
WHEELERS.

Fuel economy
12%
15% Better engine power

52% More comfortable and

sophisticated
21% Other reasons

CURRENT PREFERENCE OF THE CONSUMERS

Brand Name No. Of Consumers Percentage

TVS 29 0.29
HERO HONDA 32 0.32
BAJAJ 28 0.28
YAMAHA 7 0.07
OTHERS 4 0.04
TOTAL 100 100

INFERENCE
From the above table we can infer that the present preference of consumers 32% of
consumers prefer Hero Honda ,29% of consumers prefer TVS ,Yamaha and other bikes
11% of consumers are using the Bajaj company motorcycles.

CURRENT PREFERENCE OF THE CONSUMERS

4%
7%
29%
TVS
HERO HONDA
28% BAJAJ
YAMAHA
OTHERS

32%
 CRETERIA FOR DECISION MAKING

Criteria No. Of Consumers Percentage

ADVERTISEMENT 15 0.15
FAMILY MEMBERS 30 0.30
PEER GROUP IDEAS 35 0.35
OWN DECISIONS 20 0.20
TOTAL 100 100

INFERENCE

From the above table we can infer that Peer group ideas have been the deciding factor in
making decisions for motorcycles. Ten consumers have been made their purchase
because of family member’s stress.Advertisemnt were the criterion for decision making
incase of only 15 consumers .20consumers have made their purchase based on their own
analysis
 CRETERIA FOR DECISION MAKING

15%
20%

ADVERTISEMENT
FAMILY MEMBERS
PEER GROUP IDEAS
30% OWN DECISIONS

35%

CONSUMERS RATING FOR THEIR MOTORCYCLE ADVERTISEMENT

RATINGS NO.OF CONSUMERS PERCENTAGE

IMPRESSIVE 16 0.16
GOOD 72 0.72
NOT INTERSTING 12 0.12
TOTAL 100 100

INFERENCE

From the above table we can infer that 72% of consumers feel good of their
advertisements .16% of consumers impressed by the advertisements.12% of the
consumers are not satisfied with the advertisements for their motorcycle.
CONSUMERS RATINGS FOR THEIR
MOTORCYCLE ADVERTISEMENT

12% 16%

IMPRESSIVE
GOOD
NOT INTERSTING

72%
 ENGINE POWER OF THE MOTORCYCLE

ENGINE POWER NO.OF CONSUMERS PERCENTAGE

BELOW 100CC 35 0.35
100CC-250CC 55 0.55
250CC-350CC 10 0.10
TOTAL 100 100

INFERENCE

From the above table we can infer that100cc and below 100cc is the engine power
preferred by 35% of the consumers. 55% of the consumers have bikes with 250cc and
10% of the consumers have bikes with 350cc.
 ENGINE POWER OF THE MOTORCYCLE

10%
35%
BELOW 100CC
100CC-250CC
250CC-350CC
55%
 FEATURES DISLIKED BY THE CONSUMERS IN THEIR MOTORCYCLES

FEARTURE NO.OF CONSUMERS PERCENTAGE

FUEL ECONOMY 56 0.56
COSTLIER 24 0.24
TECHNOLOGY 15 0.15
SERVICING 3 0.03
OTHER REASONS 2 0.02
TOTAL 100 100

INFERENCE

From the above table we can infer that 56% of the consumers said that the fuel economy
is the factor they dislike their bikes .15% of the consumers said that technology is the
disliking factor.24% of the consumers said that they were disappointed with the cost of
their bike.3%and 2% of the consumers are dissatisfied with the servicing and other
reasons.
 FEATURES DISLIKED BY THE CONSUMERS IN
THEIR MOTORCYCLES

6%
14%
FUEL ECONOMY
COSTLIER
44%
TECHNOLOGY
19% SERVICING
OTHER REASONS

17%

SERVICING FACILITIES OFFERED BY THE COMPANIES –CONSUMER

OPINION
RATING NO.OF CONSUMERS PERCENTAGE
VERY GOOD 38 0.38
GOOD 54 0.54
BAD 8 0.08
TOTAL 100 100

INFERENCE

From the above table we can infer that most of the consumers 54% were satisfied with
the servicing facilities offered by the companies .38% of the consumers were highly
satisfied of the service facility offered.8% of the consumers felt badly of the service
facilities offered.
 SERVICING FACILITIES OFFERED BY THE
COMPANIES –CONSUMER OPINION

17% 19%

VERY GOOD
GOOD
BAD

64%

SERVICING INTERVALS

TIME INTERVAL NO.OF CONSUMERS PERCENTAGE

EVERY 3 MONTHS 58 0.58

EVERY 6 MONTHS 30 0.30

EVERY12 MONTHS 12 0.12

TOTAL 100 100

INFERENCE

From the above table we can infer that 58. % of the consumers goes for servicing in every
3 months and 30% of the consumer services their bike in every 6 months. Only 12% of
the consumers are used to service their bikes once in a year.
 SERVICING INTERVALS

11%

EVERY 3 MONTHS
EVERY 6 MONTHS
31%
58% EVERY12 MONTHS

KILOMETERES TRAVELLED PER MONTH (IN AVERAGE)

NO.OF KM'S/MONTH NO.OF CONSUMERS PERCENTAGE

BELOW 300 Kms 27 0.27
300-500Kms 45 0.45
500-1000Kms 13 0.13
ABOVE 1000Kms 15 0.15
TOTAL 100 100

INFERENCE

From the above table we can infer that 45% of the consumers travels 300-
500Kms/Month.13% of the consumers travels, either below 300Kms or between 500-
1000 Kms /Month .Only 15% of the consumers travel above 100kms per month.
 KILOMETERES TRAVELLED PER MONTH (IN
AVERAGE)

15%
32%
BELOW 300 Kms
300-500Kms
500-1000Kms

53%

MILAGE OFFERED

NO.OF KM'S/Liter NO.OF CONSUMERS PERCENTAGE

UP TO 35Kms/ltr 36 0.36
35-50 Kms\ltr 47 0.47
50-75 Kms\ltr 12 0.12
ABOVE 75 Kms\ltr 5 0.05
TOTAL 100 100

INFERENCE

From the above table shows that 12% of the consumers get 50-75 Kms\Lr of
mileage.47% of the bike offers 35-50 Kms\Lr of mileage .36% of the bikes gives only 35
Kms\Lr and below.5% of the consumers get a mileage of more than 75 Kms\Lr.
 MILAGE OFFERED

50
45
40
35
30 UP TO 35Kms/ltr
25 47 35-50 Kms\ltr
20 50-75 Kms\ltr
36
15
10
5 12
0
UP TO 35Kms/ltr 35-50 Kms\ltr 50-75 Kms\ltr

CONSUMERS RESPONSE FOR EXCHANGE MELAS

OPTIONS NO.OF CONSUMERS PERCENTAGE

YES 38 0.38
NO 62 0.62
TOTAL 100 100

INFERENCE

From the above table shows that 38% of the consumers have expressed willingness to
accept the exchange offers and 62% of the consumers have returned to accept the
exchange melas .If anywhere offered by the consumers.
 CONSUMERS RESPONSE FOR EXCHANGE
MELAS

70
60
50
40 YES
30 62 NO
20 38
10
0
YES NO

CONSUMER EXPECTATION ABOUT THE BIKE

FEATURES NO.OF CONSUMERS PERCENTAGE

TECHNOLOGICAL FEATURE 30 0.30
FUEL ECONOMY 52 0.52
COST 10 0.10
ENGINE POWER 8 0.08
TOTAL 100 100

INFERENCE

From the above table shows that 52% of consumers have suggested fuel economy and
30% is technological features to make their motorcycle a best one.10% of the consumers
suggested cost of the bike and 8% of the consumers suggested engine power is the better
feature.
 CONSUMER EXPECTATION ABOUT THE BIKE

8%
10%
30% TECHNOLOGICAL
FEATURE
FUEL ECONOMY

COST

ENGINE POWER

52%

CONSUMERS EXPECTATION ABOUT THE SERVICE OF THE BIKE

YEARS NO.OF CONSUMERS PERCENTAGE

0-5 YEARS 30 0.30
5-10 YEARS 54 0.54
10-15 YEARS 12 0.12
ABOVE 15 YEARS 4 0.04
TOTAL 36 100

INFERENCE

From the above table shows that 54% expect their motorcycle to serve them for 5-10
years.30% of the consumers wish to use their bikes for 0-5 years.1/4th of the consumers
expect to use 10-15 years and 12% of the consumers want to use their motorcycle for
more than 15 years.
 CONSUMERS EXPECTATION ABOUT THE SERVICE
OF THE BIKE

60

50

40 0-5 YEARS
5-10 YEARS
30
54 10-15 YEARS
20 ABOVE 15 YEARS
30
10
12
0 4
0-5 YEARS 5-10 10-15 ABOVE 15
YEARS YEARS YEARS

DECISION MAKING CRETERIA OF THE CONSUMERS

FAMILY MEMEBRS PEER GROUP INDIVIDUAL

AGE ADVERTISEMENT STRESS IDEAS DECISION
UP TO 25 2 0 1 0
25-35 1 4 5 2
35-45 1 3 3 0
45-55 2 3 9 0

INFERENCE

From the above table shows that the age group and the decision-making criteria.
Consumers with the age of 25 years consider advertisement as the criteria for decision-
making. Consumers in the age of 25-35 keep peer group ideas and family members stress
on decision –making criterion. Consumers in the age group of 35-45 also have the same
criteria while making decicions.Consumer of age group 45-55 were keeping peer group
ideas as their decision making criterion most cases.
 INCOME LEVEL AND THE ATTRACTING FEATURE

INCOME SERVICING FUEL

LEVEL CHEAPER FACLITY ECONOMY COMFORTABILITY OTHER

UP TO 5000 0 0 6 8 0

5,000-10,000 1 1 0 4 2

10,000-15,000 3 1 1 0 2

ABOVE 15,000 0 1 2 3 1

INFERENCE

From the above table shows that the income level and the attracting features are compared
.Consumers having an income of below Rs5, 000 were attracted by both fuel and comfort
ability. Income group of 5,000-10,000 was mostly attracted by comfort ability. Income group
of 10,000-15,000 was attracted by cheaper prices. Consumers of earning group 15,000 and
above were mostly attracted by fuel economy and comfort ability.

INCOME LEVEL AND NO.OF Kms.TRAVELLED PER MONTH

INCOME LEVEL BELOW 300 300-500 500-1000 ABOVE 1000

UP TO 5000 0 3 6 5
5,000-10,000 2 1 3 2
10,000-15,000 2 0 3 2
ABOVE 15,000 1 2 2 2

INFERENCE

From the above table brings out the relationship between the income level and the Kms
traveled by the consumers. Income group of below Rs 5,000 id traveled monthly above
500Kms every month .All the other income groups travel evenly.
 RANK CORRELATION

AGE
BIKES GROUP d1 d2 d3 d4 d5 d6 d1 d2 d3 d4 d5 d6
25- 35- 45- A- A- A- B- B- C-
Below 25 35 45 55 B C D C D D
BAJAJ 1 1 0 0 0 1 1 1 1 0 0 1 1 1 1 0
HONDA 0 2 2 1 -2 -2 -1 0 1 1 4 4 1 0 1 1
TVS 1 2 0 4 -1 -1 -3 2 -2 -4 1 1 9 4 4 16
YAMAHA 3 0 2 0 3 3 3 -2 0 2 9 9 9 4 0 16
OTHERS 0 0 1 0 0 0 0 -1 0 1 0 0 0 1 0 1

Calculation:

(A, B) = 1-0.7 =0.3

(A-C) = 1-0.75 =0.25

(A, D) = 1-1 =0

(B, C) = 1-0.5 =0.5

(B, D) = 1-36/120 = 0.7

(C, D) = 1-132/120 = -0.1

INFERENCE

The table shows that the rank correlation. The researcher to find out the age groups that
have close ideas and preference in purchasing a motorcycle used the table .From the
above table shows the calculation it’s observed that age group 25-35 and 35-45 have
similar preference for motorcycles than all the other groups.
 INCOME LEVEL vs. NUMBER OF KM .TRAVELLED PER MONTH

Analysis Of Variance

Below 300 300-500 500-1000 >1000

< = 5000 0 3 6 3
5000-1000 2 1 3 2
10000-15000 2 0 3 2
> = 15000 1 2 2 2

Calculation:

Hypothesis

Ho: there is no significant difference between income level and number of K/m traveled
per month.

H1: There is significant difference between income level and number of K/m traveled per
month

Test statistics:

F treatment = Variance of treatment

-------------------------
Variance of error

F block = Variance of block

-----------------------
Variance of error

Correction factor:

T =36, N=16, then correction factor is given by C.F = T2/N.

C.F = (36)2
---- = 1296/16 = 81
16

Total sum of squares:

TSS = xij2 –C.F

TSS = 9+36+25+4+1+9+4+4+1+4+4+4-81

=118-81

= 37

Degree of freedom = 16-1 = 15

Sum of squares of Treatment:

SST= (average of the treatment) C.F.

=49+16+12.25-81

=89.50-81

=8.5

Degree of freedom =4-1 =3

Sum of squares of block:

SSB = (average of the block)-C.F

=6.25 +9+49+30.25-81

=94.50-81

=13.5

Degree of freedom =4-1=3

Tabulation:

Source SS D.F Variance F-Test

SST 8.5 3 2.8333 1.6999

SSB 13.5 3 4.5 2.6999

ERROR 15 9 1.6667

TSS 37 15

Inference:

As per the table the calculated value is 1.6999and 2.6999 and the table value for its
respective degree of freedom is 3.86 and 3.86.

F- Tabulated value for treatment (3, 9) =3.86

F-Tabulated value for block (3, 9) = 3.86

So calculated value is less than tabulated value, we accept the null hypothesis (H0)

That is, there is no significant difference between the income level and number of
Km.Travelled per month.

In this chapter the researcher has listed out the results of the analysis done in the previous
chapter. These findings are the brief summary of the analysis done with the help of
various statistical tools i.e table, piedia grammars, bar diagram and rank correlations.
Based on these findings and observations the researcher has said out the suitable
suggestions for the problem identified during these studies.

ƒ Government employee constitute 45% of the sample size and 20% of the
consumers are self employed

ƒ Majority of the consumers earn Rs 5000-Rs 10000 P.M

ƒ There were at least some amount of expenditure towards education, entertainment

and health in most cases is up to Rs 500 P.M.

ƒ Mopeds and scooters together have been the previous preferences of 60%
consumers. Motor cycle to motor cycle shifts are very marginal.
ƒ Fuel economy and comfort ability was the inducing factor for 52 % of the
consumers to make a shift.

ƒ Motorcycle sales are picking up very fastly .This is revealed from the data
recorded as 47.22% of the bikes were purchased within a period of five years
compared to 36.11 % of bikes purchased within 5-10 years. However in the last
three years there was a marginal decrease of 2.78 % in the bikes sale.

ƒ For motorcycles, peer group ideas were the most effective decision making
criterion. Family member’s stresses in the next effective criterion .Advertisement
are found to be not an effective decision making criteria.

ƒ No consumers has said that the advertisement were impressive. But most of the
consumers feel good of their advertisements.

ƒ Fuel economy and comfort ability was the main attracting features. Comfort
ability has attracted 15 % of consumers and fuel economies have attracted 52 %
of the consumers .The cost was not a major attracting feature for motorcycle.

ƒ Most of the consumers (61%) feel good about the preference of their motorcycles
only (3%) of the consumers were dissatisfied of the performance of their bikes.

ƒ Major feature disliked by the consumers (56%) was bad mileage. Technology and
cost were the other major features disliked by the consumers.

ƒ Majority feature disliked by the consumers (92%) were satisfied with their service
facilities offered by the companies through dealers

ƒ 3Months and below that were the ideal time interval for servicing their bikes in
case of 58% of the consumers.

ƒ 27% of the consumers travel around 300-500km every month 1/4th of the
consumers travel below 300 kms and 500-1000 kms every month. Only 15% of
the consumers go for extensive traveling i.e. more than 1000 kms p.m

ƒ The cycles offering 50-75 kms/lr have highest market share (12%) closely
followed by the motorcycle offering 35-50 km\lr (47%).The motorcycle which
offer either below 35 km\lr or above 75 kms\lr has a very little market share (36%
and 5%) respectively.

ƒ Majority of the consumers doesn’t want to accept exchange melas. Only 38% of
the consumers have the will to accept the exchange melas.
 ƒ 30% of the consumers consider technology and fuel economy as the feature that
could make their motorcycle a best one in the market (52%)

ƒ Of the 17 consumers who have an idea of making a shift 35.29% of the consumers
preferred Yamaha .This shows that Yamaha has good future market.

ƒ The second hand cars gave a threat to the motorcycles.3 consumers have opted for
the second hand cars incase of making shift.

ƒ Comfort ability is the main consideration for consumers of all income groups
except the income group 10,000-15,000.Cost is the main consideration for them.

ƒ Consumers in the income group of Rs 5,000 and below travel extensively

compared to other income groups.

ƒ Engine power and comfort ability are the most common attracting feature present
in all the motorcycles.

SUGGESTIONS

9 Since peer group’s ideas and the family members stress are the most inducing
factors for consumers to decide on purchase of motorcycles. Hence companies
should try to find out the opinion leaders in these groups by suitable sales
promotion techniques.

9 The company should try to build up brand loyalty among the consumers up to 45
years of age persons. Companies have to design the best motorcycles for this
purpose.

9 The performance attracts more consumers compared to fuel economy. Hence

companies should design bikes. that could perform well and at same time fuel
economy could not be gave up.

9 Company should concentrate more on age groups 25-35 and 35-45 since they
have common preference compared to other groups.

9 Bajaj should boost up the sales of motorcycles. Since only 28% of the consumers
prefer Bajaj motorcycle compare to that of Hero Honda 32% market, TVS and
Yamaha also try to improve their market shares.

9 In the last 3 years there was a marginal decrease in the growth rate of
 motorcycles. This should be considered and needed improvements to be made.

9 Peer groups ideas and family members stress are found to be more effective than
advertisements in motivating a consumer to buy motorcycles. Hence the
companies should concentrate more on other sales promotion techniques through
their dealers.

9 In advertisements their brands the companies should advertise through TV’s and
NEWS papers as these advertisements .The advertisements should also be
impressive.

9 The company should produce motorcycles offering good fuel economy and
comfort ability even at slightly higher cost, as cheaper bikes don’t attract so many
consumers.

9 The consumers like red colored bike more. The companies may produce red
colored bikes to attract more consumers.

CONCLUSION

Existence of a large middle class offers a great scope for the growth of motorcycle
market. In the last 15 years this fact was visible seen in our Indian markets. The existing
competition however makes it a tough task for the companies to be the market leader. In
future bikes which are technologically supreme alone could survive in the markets like
most of the other consumer products quality alone speaks in motorcycles industry also
and companies producing quality products alone win the confidence of consumers.

APPENDIX -1

QUESTIONER FOR STUDYING THE PREFERENCE OF CUSTOMERS FOR

TVS MOTOR CYCLE IN CHENNAI

1, Name & age of the Respondent :

2, Education qualification of the Respondent:

(a) illiterate
(b) + 2 and below
 (c) Graduate (U.G (or) P.G)
(d) Professional

3, Occupation of the Respondent.

(a)Self-Employed
(b) Professional
(c) Govt.Emloyee
(d) Private employee

4, Family size of the Respondents.

(a) 1-3
(b) 4-6
(c) 6 & above

5, No. Of earnings members in the Family

(a)One
(b) Two
(c) Three & above

6, Gross Family income P.M of the Respondent.

(a) Up to Rs 5,000
(b) 5,000 – 10,000
(c) 10,000-15000
(d) Above 15000

7, what is your monthly expenditure on the following heads?

(Tick the appropriate box)

EDUCATION ENTERTAINMENT HEALTH

Up to Rs 500 Up to Rs 200 Up to Rs 500

500-1,000 200-500 500-1,000

Above 1,000 Above 500 Above 1,000

8, How much do you spend for your Motor cycle P.M ?

(a)Up to Rs 100
 (b) 100-300
(c) 300-500
(d) Above 500

9, What Motor Cycle do you own now?

(a) TVS
(b) Hero Honda
(c) Bajaj
(d) Yamaha
(e) Others

10, How do you feel of the advertisement of your Motor Cycle?

(a) Impressive
(b) Fare
(c) Not interesting

11, For how long you are using the Motor Cycle?

(a) 1-3 years

(b) 3-5 years
(c) 5-10 years
(d) Above 10 years

12, How will you rate the performance at your bike?

(a) Very Good

(b) Good
(c) Not Bad
(d) Poor

13, If you have owned previously a two-wheeler what was that?

(a) TVS
(b) Hero Honda
(c) Bajaj
(d) Yamaha
(e) Others (specify) _________

14, Give the reason for your shifting?

(a) Fuel Economy

(b) Better engine power
(c) More Comfortable & Sophisticated
 (d) Other reasons (specify) _______________________________

15, In case of making a shift, which Motor Cycle will you buy?

(a) TVS
(b) Hero Honda
(c) Bajaj
(d) Yamaha
(e) Others (specify) ________________________________

16, How long do you expect your Motor Cycle to serve you?

(a) 1-3 years

(b) 3-5 years
(c) 5-7 years
(d) 7-10 years
(e) Above 10 years

17, What feature attracted you most to this motor cycle? (TVS)

(a) Its cheapness

(b) Adequate servicing facilities
(c) Fuel economy
(d) Comfortable to use
(e) Others (specify) __________________

18, Which color is suitable for the Motor Cycle?

(a) Red
(b) Blue
(c) Green
(d) Black
(e) Gray
(f) Others

19, How do you feel the service facilities offered by companies through
their dealers?

(a) Very Good

(b) Comparatively Good
(c) bad

20, Specify the engine power of your Motor Cycle?

21, What is the Mileage offered by your Motor Cycle?

(a) Up to 35 km/litre
(b) 36 to 50 km/litre
(c) 51-75 km\litre
(d) Above 75 km\litre

22, How many Kms do you travel every month in an average?

23, At what time interval do you go for servicing ?

24, What features should be developed in TVS motor Cycle to make it as

the best?

25. Will you go in for a new one if the company offers any “Exchange mela”?

26, For what purpose do you use your motor cycle often?

(a) To commuting to the work place

(b)To meet the household needs
(c)For entertainment and fun
(d) For office works

27, Please select the category of service work performed for this visit

(a)Warranty
(b) Non-warranty
(c) Oil change\Factory scheduled Maintenance
(d) Other

28, After your service visit, did someone from the dealership contact
you by phone or by e- mail to see if you were satisfied with overall
Service experience?

(a) Yes
(b) No
(c) Not at all
29, overall, how would you rate the dealership staff that you bought the vehicle from?

(a) Excellent
(b) Very good
(c) Good
(d) Average
(e) Bad

APPENDIX -2
QUESTIONER 2
QUESTIONER FOR SERVICE PROCESS

INTERVIEWED BY: DATE: VEHICLE:

OWNED :

DEALER NAME: PLACE:

Q1, As I read aspect I would like you to express your opinion by rating the dealer I
request you
to give marks out of 100 for each aspect.

10 20 30 40 50 60 70 80 90 100
UNACCEPTABLE AVERAGE OUTSTANDING

SL.NO STATEMENT
MARKS

1. Quality of work performed

2. Overall performance of the service personnel

3. Honesty and integrity of service personnel

4. Ability to fix problem’s the first time

5. Service personnel’s understanding of the problem

 6. Length of time to have your two wheeler serviced

7. Courtesy and friendliness of service personnel

Q 2 , I would now like you to answer a few questions relating to your experience with
dealer
at that time of taking the vehicles.

SL. STATEMENT YES NO SL STATEMENT YES NO

NO

Was the service work fully 7 Did the person take you 2-wheeler
Explained before servicing? for service listen to all problems
patiently and do enough probing
to understand the problems?

Was a Written estimate of the 8 Did the person take your 2-wheeler
Service amount provided before for road trail?
Servicing?

Were the charges for servicing 9 Did the service center charge you
Reasonable? for free service carried out on your
2-wheeler(except oil change)

Did the dealer explain the work 10 Were you asked to deposit money
Done after servicing for warranty replacement?

Was the vehicle returned clean 11 When you arrive the service center
And washed? for booking, did someone attend to
You within a reasonable time?
In your opinion, does this TVS
Dealership value your service
Business?
Q3, I would like you to give marks for the overall satisfaction with the service
capabilities of the
RamKay agencies (TVS) dealer you’re visited most recently.

10 20 30 40 50 60 70 80 90 100
UNACCEPTABLE AVERAGE OUTSTANDING

BIBLIOGRAPHY

BOOK NAME AUTHOR NAME

Contemporary Marketing Boone & Kurtz

The Dictionary Of Marketing Rona Ostrow

Marketing Management Philip Kotler

Marketing Management Crurens Hills Wooruf

Fundamentals of marketing William J.Stanton

Marketing Concepts And Applications Charles D.Schewe

Marketing Management Ramasamy

Marketing Management Subbi Redid

Modern Marketing RSN Pillai & Bagavathi