GUIDELINES : 1. Objective: To find out the cause of growth of TVS Mopeds in parts of the North Indian market. 2. Topic for the Project Report: Market Mapping of TVS XL. 3. Project Report Faculty Guide: Mr. Sourav Das ( Industry Guide) Mrs. Aarti Mehta Sharma (College Faculty Guide) INTRODUCTION CHAPTER1 1. 1 Introduction: MARKET MAPPING Market mapping is used to develop a clear understanding of how a market actually works, looking at both the routes or channels to market and the role of influencers.
A key stage in market mapping is to identify who makes the decision between alternative offers, as it is on these individuals/departments that the segmentation review will focus. A market map defines the distribution and value chain between supplier and final user, which takes into account the various buying mechanisms found in a market, including the part played by ‘influencers’. Market maps help focus attention on key decision makers within a market, and identify key target market segments within a market segmentation project. Market channels and he key players within channels can be easily identified with the help of a graphic presentation of a market. In addition, the Market Mapping process goes well beyond simply gathering and reporting market data by providing a collaborative, team-based process for bridging the gap between information and action. Market Mapping is an ideal complement to a Future Mapping scenario planning exercise. In the same way that scenarios help company teams to develop and align around a common view of the future, Market Mapping addresses alignment with customers.
Market Mapping can help companies address issues like these: They have a vision of the future but they are not sure whether their customers share it. They think they know the best way to segment their market but they could be wrong. The companies simply don’t know their customers well enough to understand, where they are going and are not sure which new products or services, they will want in the future, or how they will want to buy them. They expect consolidation in the industry and in their markets but they are not sure how that will affect their competitive position.
They can’t agree on how they should differentiate themselves from their competitors or on their best opportunities for growth and profitability. A market map can help deliver key customer and consumer insights, and ensures full awareness of the total market place. Market Mapping takes a strategic, forward-looking approach to crafting market driven strategy and segmentation, focusing on where customers are going, instead of where they’ve been. [pic][pic] Market: Ghaziabad [pic] [pic][pic]
Market: ALIGARH Market: SONIPAT 1. 1 Need for the study: INDUSTRY PROFILE CHAPTER2 INDUSTRIAL PROFILE: India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment.
Bikes are considered to be the favorite among the youth generation, as they help in easy communication Large variety of two wheelers are available in the market, known for their latest technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class for both men and women in India. Benefits of two wheeler: Two-wheelers are the most popular and highly sought out medium of transport in India. The trend of owning two-wheelers is due to its – • Economical price • Safety • Fuel-efficient • Comfort level
Mopeds were first manufactured in the country by automobile Products of India in the year 1955. Nearly three decades later the first indigenous two-seater moped was rolled out of the TVS factory in Hosur, Tamil Nadu. Mopeds are a type of low-powered motorcycle with pedals, designed to provide economical and relatively safe transport with minimal licensing requirements. Traditionally, mopeds are equipped with bicycle-like pedals (the source of the term, motor-pedal), but moped is sometimes applied by governments to vehicles without pedals, based on their similar engine displacement, speed, and/or power output.
Mopeds occasionally resemble powered bicycles, but most are now step-through designs (both kinds, visually similar to a traditional scooter but with either large or small wheels) and step-over designs similar to regular motorcycle. Although mopeds usually have two wheels, in some jurisdictions low-powered three or four wheeled vehicles are also classified as mopeds. [pic] The earliest mopeds were invented by Anthony Derek Davis, which were bicycles with a helper motor in various locations, for example on top of the front wheel; they were also called cycle motors. See picture, below ) [pic] A more innovative design was known in the UK as the Cyclemaster. This had a complete powered rear wheel which was simply substituted for the bicycle rear wheel, which originated from a design by two DKW engineers in Germany. Slightly larger machines, commonly with a 98 cc engine were known as auto cycles. On the other hand some mopeds, such as the Czech-made Jawa, were derived from motorcycles. [pic] While the term “moped” now has a particular meaning, pedals were a sign of sophistication when fitted to early motorcycles. pic] The original moped – a bike equipped with a motor The word moped was coined by Swedish journalist Harald Nielsen in 1952, as a portmanteau of motor and pedal. It is however often claimed to be derived from “motorvelociped”, as Velocipede is an obsolete term for bicycle that is still being used in some languages such as Russian. According to Douglas Harper, the Swedish terms originated from “trampcykel med, motor och ped aler “, which means “pedal cycle with engine and pedals. ” (the earliest versions had auxiliary pedals).
Other terms used for low-powered cycles include: Mofa (Motor-Fahrrad, German for motor-bicycle), Mokick (equipped with kick-start), Motorbicycle, Motorized Bicycle, Motor-Driven Cycle, and Goped (motorized inline skateboard with T-bar), Mopo (Moottoripolkupyora, Finnish meaning motor-powered bicycle). The term “Noped” is sometimes used for mopeds that do not have the pedals fitted. By the 1970s, it was obvious that the pedals on mopeds were no longer performing any useful function, in fact the performance of the 49 cc engines available was delivering speeds in excess of 50 mph (80 km/h), a common model in the UK being the Yamaha FS1E.
Such speeds were felt to be considerably more than the target market could safely handle. What is a moped really and where does it come from? One needs to go back to the early days of the bicycle and the invention that revolutionized the 20th century – the internal combustion engine. Put one of these into a coach and you have an automobile; mount it on a bicycle, you have a moped (Motor +Pedals), the precursor of ALL motorcycles. The pedals were omnipresent on all, used both as a starter device and as emergency fallback on human power.
As engine sizes got bigger and bigger, it looked as if the half-bicycle-half motorcycle mopeds were just a short-lived early development phase (like a tadpole) that progress simply left behind. History however proved it otherwise: The moped’s evolution can be broken down into 4 distinct periods: From the very beginning to the end of the first world war, the period between the two wars, the phase after WWII to the early ’80s and finally today.
We also have to define what we call a moped: a cross between a human-powered bicycle and an engine powered motorcycle, equipped with a (usually) under-50cc gasoline engine (although some early models used 98cc displacements as well). After the end of WWI, with Europe’s map completely redrawn, the short period until the Great Depression of the ’30s was not conducive to the development of the moped. While motorcycle manufacturing boomed, largely fuelled by the rapid re-armament needs on all sides, it seemed that the low-cubic, low-speed moped would become extinct forever, Except nobody factored in WWII.
After the war ended in Europe, the demand for simple and economical, means of transportation skyrocketed. Nobody could afford a car, or even a motorcycle. Most factories were in ruins anyway. In Southern European countries, like Italy and France, people got around on bicycles. This was fertile breeding ground for the rebirth of the moped and also gave us the other Italian cultural icon, the scooter. Bicycle makers (most of which were also motorcycle manufacturers) all started offering small auxiliary engines for their bicycles. Motobecane, Peugeot, Ducati, Moto Guzzi all got into the act.
The first giant leap forward was the appearance of the Velosolex, a giant among the dwarfs. If you ever rode a Velo, either with its engine running or as a bicycle, you’ll appreciate how well that entire machine was constructed. Originally equipped with a 33cc engine (later to grow to 42 then 49) it had a friction roller over the front wheel. You could engage-disengage the power with a lever. You had to help sometimes going uphill, but that was part of the experience. The Solex became a genuine cult idol, and rightly so. Amazingly, after more than 50 years, it’still going strong. pic] The common ancestor to mopeds and motorcycles; the Benz ‘rolling saddle’ from 1886. Still with training wheels and lever-type pedals. The 1947 prototype Velosolex, virtually unchanged ever since and still going strong. Mopeds were (and still are) typically powered by a 2-stroke engine, although some experimented with 4-stroke (Ducati, Honda, Indian, Motom) The scene changed dramatically, when Steyr-Puch of Austria, the company founded by Johann Puch, a master bicycle maker in the late 1800’s, introduced the first MS-50 in 1952.
It represented a dramatic departure from the bicycle-based design principles; with its steel pressed frame, fan-boosted engine cooling, 2-speed handlebar-shifted gearbox and an elaborate electrical system it had more in common with ‘real’ motorcycles; the first moped that was designed to be driven by its engine most of the time. The MS-50 design’s success attracted many followers and became the kingpin of its era. It remained in production virtually unchanged until 1982. They reached North-America in the late ’50s through the Sears catalogue, as the Allstate Mo-Ped.
As Europe gradually recovered economically, again it looked that the moped, originally intended as a stopgap measure would disappear, this time for good. Instead, it kept on flourishing and its popularity went on to become a craze. There were moped races, clubs, meets and trips. [pic] This 1980 Indian carries the famous brand’ name and was meticulously conceived as the ‘non-plus’ultra’ among mopeds. With its large frame, extended handlebars, elongated seat (sold as a 2-seater where permissible) riding one didn’t feel like riding a smaller, more bicycle-like moped.
Automobile Products of India commenced the manufacturing of scooters and mopeds from 1955. Between 1955 and 1960 only API produced mopeds. During the first half of the ’60s, three companies namely Mopeds India Ltd (1965), SZUL Gwalior (1964) and Pearl Scooters Ltd (1962) entered the mopeds arena. Mopes India Ltd launched ‘Suvega’. Soon, Kinetic Engineering Limited, a part of the Kinetic group of companies, launched the moped — Luna — in 1972. The company also introduced the first gearless scooter. TVS too launched a moped TVS 50 — in the Indian market in 1980. [pic] COMPANY PROFILE CHAPTER3
TVS group, which established in1911 by late Mr. T. V Sundaram Iyengar (1877-1955) as a bus service in Madurai, now consist of 30 Companies. It is the largest automotive Component-manufacturing group in India with annual sales of more than RS 100 billion (2002-2003). TVS motor is the largest company in the TVS group, consisting 27%of the group sales. In TVS, “T” stands for trust “v” stands for value. “S” stands for service. TVS MOTOR COMPANY LIMITED is the third largest two-wheeler manufacturer in India and among the top ten in the world. It is the largest manufacturer of sub 100cc [50cc, 60cc&70cc category] 2-wheeler in the world.
TVS motor has been a major player in the Indian Two-wheeler industry since its inception. It started manufacturing of mopeds in 1979 at moped division of SCL in Hosur [Ind-suzuki motorcycles limited [ISML] was formed in 1982 at Hosur, as a joint venture between SCL and Suzuki motor corporation [SMC],Japan. during 1987 SCL Moped division was acquired by ISML. The new company after this merger was named as TVS-SUZUKI Limited [TSL]. In2001; both the joint venture parties SCL and SMC decided to amicably part ways and TSL was renamed as TVS MOTOR COMPANY LIMITED.
TVS MOTOR COMPANY LTD has the two major plants at Harita, Hosur and Byathahalli, Mysore. in additional; there are upcoming plants at Nalagarah, Himachal Pradesh to meet the rising need of vehicles in North India and Indonesia solely for Export purpose. Also TVS MOTOR COMPANY LTD is planning to build a plant for the manufacturing of 3- wheeler in Hosur. TVS MOTOR manufactures the entire range of Two-wheelers such as mopeds, motorcycle and scooters varying from 50cc to 150cc from its plant located at Hosur and Mysore in south India.
The production capacity is 1. 5 million vehicle per year [2002-2003] with net fixed assert of RS 10billion. Under the able leadership of chairman Mr. Venu Srinivasan, TVS MOTOR is poised to make its presence felt in the India and international markets. India’s first two-seater 50 Moped TVS 50, Launched In AUG 1980 and now in the year 2006 it has the highest market share of its moped products of 69%. According to a recent study by BCG&CII, TVS MOTOR COMPANY LTD is among the list of 100 companies chosen out of 12 rapidly developing economies.
It is also the recipient of the respected DEMING PRIZE awarded by the JUSE counselors. 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.
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2007-2008, and is the flagship company of the USD 4 billion TVS Group. A bike for anyone TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. Motorcycles (TVS Apache, TVS Star, TVS Flame) Variomatic Scooters (TVS Scooty Streak, TVS Scooty Pep +, TVS Scooty Teenz) and Mopeds (TVS XL Super, TVS XL Heavy Duty) [pic] Penchant for Quality
The company has 4 plants – located at Hosur and Mysore in South India, in Himachal Pradesh, North India and one at Indonesia. The company has a production capacity of 2. 5 million units a year. TVS Motor’s strength lies in design and development of new products – the latest launch of 7 products on the same day seen as a first in automotive history. We at TVS deliver total customer satisfaction by anticipating customer need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is our continuous source of inspiration.
TVS has always stood for innovative, easy to handle, environment friendly products, backed by reliable customer service. TVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right time. TVS Motor – The Industry Leader: TVS Motor will be one among the top two two-wheeler manufacturers in India and one among the top five two-wheeler manufacturers in Asia. TVS Motor – Global overview:
TVS Motor will have profitable operations overseas especially in Asian markets, capitalizing on the expertise developed in the areas of manufacturing, technology and marketing. The thrust will be to achieve a significant share for international business in the total turnover. TVS Motor – At the cutting edge: TVS Motor will hone and sustain its cutting edge of technology by constant benchmarking against international leaders. TVS Motor – Committed to Total Quality: TVS Motor is committed to achieving a self-reviewing organization in perpetuity by adopting TQM as a way of life. TVS Motor believes in the importance of the process.
People and projects will be evaluated both by their end results and the process adopted. TVS Motor – The Human Factor: TVS Motor believes that people make an organization and that its well-being is dependent on the commitment and growth of its people. There will be a sustained effort through systematic training and planning career growth to develop employees talents and enhance job satisfaction. TVS Motor will create an enabling ambience where the maximum self-actualisation of every employee is achieved. TVS Motor will support and encourage the process of self-renewal in all its employees and nurture their sense of self worth.
TVS Motor – Responsible Corporate Citizen: TVS Motor firmly believes in the integration of Safety, Health and Environmental aspects with all business activities and ensure protection of employees and environment including development of surrounding communities. TVS Motor strives for long-term relationships of mutual trust and interdependence with its customers, employees, dealers and suppliers. [pic] TVS XL: It has come up with all the features which is highly required to market this bike. Every two wheeler riders are pleased to have all the technical specifications and salient features in one scooter.
It is fully equipped with various standard equipments which assure the safety and security of this two wheeler. Models of TVS XL: [pic] TVS XL Super TVS XL Super comes equipped with several important features. It comes available with 70 cc engine with the kick start option. It is further marketed with auto wet clutch system which make this moped reliable to all the riders. There are found many safety and comfort features to make this moped better for riding. Those special features included in it are safety fuel tank lock, super speedometer and ignition control, super multi reflector head lamp and indicator etc, it is found in different colors Red • Black • Green • Blue TVS XL Super Heavy Duty Its 70 cc engine provides easy kick start for smarter beginning. Reliability of this two wheeler is assured by its auto wet clutch system, wheel removal with QD wheel system, safer suspension etc. The only difference between the two variants is of 9 kg weight more of TVS XL Super HD. Its bold tubular frame gives proper support to the rider’s to ride it any road condition. Night riding becomes safer due to the presence of powerful 12V electrical system.
Passengers feel comfortable for its detachable seat, load carrier and secured due to the presence of effective front shock absorber, rear brake of 110 mm diameter etc, It is found in different colors • Red • Blue • Black • Green RECENT ACHIVEMENTS: TVS Motor posts 2% growth in July 2009 Hosur, August 1, 2009 : TVS Motor Company has posted 2% growth in July 2009, registering total two wheeler sales of 120,994 units against 118,545 units in the corresponding period of the previous year. The company continued its positive growth trend, registering 4% growth for the period April to July 2009.
Domestic sales of the company clocked a growth of 5% registering sales of 107,883 units in July 2009 as against 102,530 in the corresponding month of the previous year. Scooters continued to grow, recording 15% growth in sales with 27,673 units in July 2009 when compared to 24,156 units in the corresponding period of the previous year. Total motorcycle sales of the company stood at 42,998 units in July 2009 when compared to 54,042 units recorded in July 2008. Exports however, continued to be affected with sales of 13,061 units of two wheelers in July 2009 as against 16,015 units in the corresponding period of the previous year.
The recently launched TVS Scooty Streak has been well received in the market and contributed handsomely to the growth of scooter sales of the company. The Apache RTR 180 and TVS Flame SR 125 have also received encouraging response. The TVS Apache RTR 180’s with its innovative blend of revolutionary technology and sporty design with an over square engine that is programmed to whip up an astonishing 17. 3 PS has received rave reviews by auto enthusiasts and experts. The bike’s style statements such as its alloys, unique grab rails, chiseled fuel tank, front and rear petal disc brakes have been well appreciated by customers.
RESEARCH METHODOLOGY CHAPTER 4 4. 1RESEARCH DESIGN: [pic] 4. 1. 1 SOURCE OF DATA: Primary data Primary data was collected through three discussion guides approved by the company to achieve the objective of the study. 4. 1. 2 COLLECTION OF DATA: The data was collected through a desired discussion guide by Survey method. The survey was carried out in three tows in North India ( Ghaziabad, Aligarh & Sonipat ). 4. 1. 3 SAMPLING POPULATION: In the first phase, the respondents targeted were the customers of TVS who were using TVS XL.
The respondents belonged to Ghaziabad and Aligarh to understand their buying behavior regarding the Mopeds and reason for the same. In the second phase the respondents targeted were both TVS XL users and Non-TVS users who were using the bike for the same purpose. These respondents are taken from Sonipat district of Haryana. TVS XL users were taken into consideration to understand their buying behavior and Non-TVS users who are using the other bikes for the same use, are targeted to know their awareness about the TVS XL and the reasons for not choosing the product.
The respondents included the Dealers and Salesman of the above areas, to understand their way of approaching the customers and actions put forward by them to make their customers aware and satisfy about the product. 4. 1. 4 SAMPLING METHOD Cluster Sampling was done to meet the objective of the study. Four groups of respondents were taken into consideration to understand their intentions about the product 4. 1. 5 SAMPLE SIZE The total of 135 respondents were taken into consideration to conduct the study for achieving the objective. The respondents include 62 & 20 customers of TVS-XL from Ghaziabad-Aligarh and Sonipat respectively.
The study included the 38 Non-TVS XL customers to know their awareness about TVS XL. The respondents also include five (5) dealers and ten (10) salesmen. [pic] (4. 1) Showing the sample size of customers at different district 4. 1. 5 SAMPLE UNIT: a) Dealers of three towns of North India Ghaziabad, Aligarh and Sonipat. b) Salesmen of above three towns who are working with the dealer for past 2 years. c) Existing customers of TVS-XL (who bought the bike within last SIX months) d) Non- TVS XL Customers who are using other convenience for same use. ) Systematic interview directly from public. 4. 2 Methodology of Data collection: MOPEDS SALE HAS INCREASED SIGNIFICANTLY FROM LAST 5 YEARS. The Research conducted is based on survey method and the sources of data being the primary data was collected directly through the customers of the TVS XL users and Non-TVS users. The discussion guides were prepared and employed : To understand where this growth has happened, by how much & why. Where & how much would cover dealer-wise changes Study to cover both dealer understanding and end-consumer understanding.
The dealers are discussed as depth interviews to assess push and pull factors such as sales efforts and demand patterns. For consumers the following will be covered basis depth interviews. • Who is buying the product: Men , Age , Income , Geographic Location , Occupation • Why is he buying: o Purpose /need fulfilled to buy the vehicle; Functional and Social needs. This would cover Mobility routine ( distance , time, effort and cost) & load carrying requirements and how this moped fulfils this vs what he was doing before ( such as using public transport or other means).
Also Social & Economic needs fulfilled : Prestige , Earnings , More money value. o Reasons for buying : Awareness , Influencing factors, How did he/she make up his/her mind , what he had before, what would he have done if this moped was not available, what changed his mind to go for a moped. o Post use satisfaction: How satisfied he is and why? 4. 2. 1 METHODOLOGY: Approach: Survey method has been adopted to collect primary data from the TVS XL users, Non-TVS USERS, Dealers and salesmen. Method: Data was collected with the help of depth interview and direct interaction with the customers, dealers and salesmen. . 3 RESEARCH INSTRUMENT: A desired Discussion Guide was designed to allow all respondents to express themselves without any fear of disapproval, dispute, or advice from the interviewer. It contains the questions which makes the Interviewee feel he is important and tries to get irrational mind set of the customer towards the buying of TVS-XL. The discussion guide was generated and approved by the company. Three types of discussion guides were generated for Dealers & Salesmen, TVS-XL customers and Non-TVS-XL customers. 4. 4 METHOD OF ANALYSIS:
Analysis was done to Understand the need of the Survey for finding the cause for high growth of TVS-XL in some parts of North India. Data(Ref. Annex. 1) was given by the company for analysis to find the high and low TVS-XL growth markets in North Indian parts where the bike is already projected. The country data was analyzed with the help of CAGR(Ref. Annex. 2) method to find the exact location for study. Choosing of a particular State after analyzing various factors such as highest state wise Volume sales and CAGR of TVS-XL demographic, geographic factors of a region etc. (Ref. Annex. 3).
Choosing of a particular District after analyzing various factors such as CAGR and highest state wise Volume sales of TVS-XL, demographic, geographic factors of a region etc. (Ref. Annex. 4) Discussion Guides (Ref. Annex. 5, 6, 7) were prepared for depth Interview (Data Collection). (Ref. Annex. 1)It contained the questions which makes the Interviewee feel he is important and tries to get irrational mind set of the customer towards the buying behavior of TVS-XL. Residing 7-12 days in each town for collection of data to meet the dealers, salesmen, customers and public to understand their perception towards TVS-XL.
Taking the sales data of TVS-XL within last SIX months including the bio data (Address, Phone number etc) of the customers. (Ref. Annex. 8) Conducting the Personal interview with the customers and recording it. Taking the Photo of the customer with their bike. (Ref. Annex. 9) Enter the data in excel sheet for further Analysis that hels in quantifying the data. DATA ANALYSIS AND INTERPRETATION CHAPTER 4 INTRODUCTION: The following study is based on the criteria like customers opinion about TVS Xl, their Likes, their Dislikes, awareness about the product and other attributes.
This approach will lead to customer perception and perspective. The data collected was primary and the respondents were both users and non-users of the TVS-XL. Dealers and Salesmen were also part of study. This study gives customer insight and helps in the market mapping of TVS-XL. The customers were personally interviewed and conversation regarding the above mentioned criteria was done. Tables and Graphs: Q1: Age group of TVS-XL customers? Table 1: |Age |Number of Ghaziabad |Customers Aligarh | |Percentage | | | |Sonipat | | |15-25 |4 |6 |4 | | |26-39 |15 |13 |7 | | |40-50 |7 |4 |0 | | |50 & Above |6 |7 |9 | | |TOTAL |32 |30 |20 | | Chapter 5: Results and Conclusions Chapter6:Limitations Chapter7:Appendices ———————– Identification of data sources Research tactics • Discussion Guide Choice of research approach – survey method Conclusion and suggestion Data collection and analysis; • Data collection • Data analysis and interpretation
Defining Research activities Primary data Source; Moped customers Non Moped Customers TVS Motor Company -Mission “We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and prosperity for employees, dealers and suppliers. ” Vision Statement TVS Motor – Driven by the customer Discussion Guide TVS XL Customers Non-TVS XL Customers Dealers/ Salesman CLUSTER SAMPLING DEALERS SALESMEN TVS-XL CUSTOMERS NON-TVS CUSTOMERS
