1

MARKET RESEARCH ON INSTITUTIONAL CUSTOMER

REQUIREMENT IN ICV SEGMENT

Summer project report submitted in partial fulfillment of the requirements for the

Post graduate diploma in management.

SUBMITTED BY:

PRIYANKA

Roll No. - 60

PGDM 2014-16

Supervisors:

Company guide: Mr. Purusothaman. C

Alumni guide: Mr. Ankur Varshney

Faculty guide: Dr. Janki Niak

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES, HARIHAR,

KARNATAKA (PGDM-2014)

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ACKNOWLEDGEMENT

With an overwhelming sense of gratitude, I want to thank Kirloskar Institute of Advanced

Management Studies for giving me the opportunity of internship. This internship has been a

very good experience for me in the way; it has given me the chance to understand the real world

outside the classroom. Internship nurtures the interpersonal skills and helps to know about office

environment.

Words are inadequate to offer my profound gratitude to Ashok Leyland Limited for providing

me a platform to work in Regional Sales Office, Hosur, Tamil Nadu under the guidance – Mr. C.

Purusothaman (Manager- RSO).

The completion of this project would have been not possible if not dependent on the steadfast

support and encouragement from Mr. Rajesh Kannan S (Private Bus Sales), Mr. Sai

Subramanian (ASM) & Mr. Arivazagan. N (ASE), their guidance and motivation has created

a path for me to work in correct manner.

I take this opportunity to express a very special thanks to my Faculty guide Dr. Janki Naik and

my Alumni Student guide Mr. Ankur Varshney for their cooperation, inputs, suggestions, and

guidance throughout the tenure of the project.

At last, I would like to thank the staff members of the company, dealers, Educational Institution

for sharing their valuable knowledge, feedbacks, suggestions & time to carry out the research.

Priyanka

Roll no. 60

Batch 2014-16

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TABLE OF CONTENT

Sr. No. Page No.

1. Title Page 1

2. Acknowledgements 2

3. Table of contents 3

4. Executive Summary 4

5. Introduction 5

6. Objectives of the study 6

7. Brief about the industry / organization where the study was carried out 7

8. Methodology followed 14

9. Tabulation and findings / results 24

10. Brief description of the concept/model introduced in the study 36

11. Interpretations and conclusions / summary 38

12. Recommendations 40

13. Limitations of the study 41

14. Scope for future improvements 42

15. Bibliography 43

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EXECUTIVE SUMMARY

Ashok Leyland ltd., an Indian automobile’s manufacturing company has given me a topic to do

market research for its ICV (Intermediate Commercial Vehicle) – Lynx & Stag. The two variant

in school bus with a seating capacity of 28seater to 50seater having a tonnage of 9 to 12 for

Institutional requirement involved in education. This market research has been done to identify

the suitable requirement in ICV segment for Educational Institute and the specification needed

by a particular segment of customers, doing competitive analysis, giving value based suggestion

that will help company to increase the sales of school buses and will enhance the market reach to

bridge the gap between competitors.

The report will mainly deal with the findings of Educational Institute’s requirements and analysis

of school buses in different Talukas of Krishnagiri District.

Firstly, I have to know the specified norms provided by government for school buses,

considering the specifications provided by our brand. This research involves identifying the

Educational Institutions that provides bus service to the students to know their feedbacks.

Meeting dealers of Ashok Leyland to get suggestions on customer’s requirement from their side

so that improvements can be made by the company in order to increase Ashok Leyland sales.

Identification & Collection of data through brochures and going to Dealership of competitor’s

brand - Tata Motors(TML) , Eicher (EML) , Mahindra & Mahindra(M&M) , Swaraj

Mazda(SML) to determine the Variants provided by them with various seating range, their

specification, features and prices. Framing an idea about the market reach, sale of product,

customer’s perception and requirement.

Secondly, Analyzing the Information gathered to list down the specific features required in a

school bus in this segment, including valuable inputs from users and dealers, suggesting

company about the requirement of customers to increase its customer based sales and market

reach.

To get the most exact and accurate data, I personally interacted with Educational Institutes and

Dealers. In this report, I have tried my level best to depict my experience with people mentioned

above.

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INTRODUCTION

The automotive industry is wide range of companies and organizations involved in the design,

development, manufacturing, marketing and selling of motor vehicles. It is one of the world’s

important economic sectors by revenue. According to the data of 2013, India ranks amongst the

6th producers of automotive having a production unit of 38, 80,938.

Under the automobile industry there is segment for Bus. In Bus segment, Ashok Leyland

continues to lead with over 50% Market share in M&HCV (Medium& Heavy Commercial

Vehicle).

Bus segment has a sub-segment - School Bus. This segment of School Bus comes under ICV

which ranges in-between 9 Tonnage to 12 Tonnage, It has a seating capacity of 28 – 50seater.

Ashok Leyland is having 18% Market Share in the ICV segment. Tata motors continues to

be in lead in ICV segment with its Starbus with around 40% Market Share followed by

Swaraj Mazda & Eicher.

Ashok Leyland is having a market Share of around 26% in Tamil Nadu, where the annual

sales of school buses in Krishnagiri district is about 14 to 18Nos and they have to achieve a

target of 30Nos.

Perception of customers, its research and analysis: The project aims to know the suitable

requirement of seat variant with specification needed in ICV segment by Educational Institute’.

Providing them the required specification at a nominal price, doing competitive analysis

knowing the reasons for buying competitor’s brands from the customers. The products need to be

reaching to the consumer by giving them more profit than competitors, because it is the era of

competition, consumer will go where they get more profit. So, useful suggestions can be made,

which can attract consumers to boost the sales of Lynx & Stag school buses and augment the

market reach to bridge the gap between competitors.

.

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OBJECTIVE OF THE STUDY

To derive the suitable requirement in ICV segment of Ashok Leyland’s Lynx and Stag for

Educational Institute. Doing alternate evaluation & giving value based suggestion to increase the

sales of school buses that will enhance the market reach to bridge the gap between competitors.

To achieve this ambition following intent has to be achieved:

Understanding requirement of Educational Institution drafting its Price, Quality, Model, and

other specification needed.

Visiting Academic Institution of Krishnagiri to know their preferences through Questionnaire.

Meeting & having telephonic conversation with Ashok Leyland’s Dealers in Tamil Nadu to

know the current sales, customer’s requirement & preference.

Meeting Dealers of EML, SML, TML and M&M to know some of the information about their

brands.

Outlining preferred Seating range with other specifications needed in connection to price

affordability.

Alternate Evaluation.

Plotting customer’s requirement.

Knowing reasons of dis-satisfied customers of Ashok Leyland.

Suggesting Value Preposition.

Value based recommendation for improvement will help to increase its market in ICV segment.

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DESCRIPTION ABOUT THE COMPANY

Ashok Leyland:

Ashok Leyland is an Indian Automobile manufacturing company based in Chennai, Tamil

Nadu. The Company is under the Flagship of Hinduja Group, a British based and Indian

originated trans-national conglomerate. Ashok Motors was incorporated in 1948 as a company

to assemble and manufacture Austin Car from England, by Mr. Raghunandan Saran. It is one of

the largest commercial Vehicle manufacturers in India with a turnover of US $ 2.3 billion in

2012-2013.

Ashok Leyland is India’s largest Exporter of M&HCVs having its chief competitors as-

Mahindra, Volvo, and Tata Motors. It sells close to 83,000 M&HV each year. The company has

a near 98.5% market share in the Marine Diesel engine markets in India. At 60

million passengers a day, Ashok Leyland buses carry more people than the entire Indian

Railway network. It has also one of the largest private sector employers in India- with about

16,000 employees working in 7 factories in India looking forward to enhance the scope of its

action.

1. Ennore, Tamil Nadu

2. Hosur: Unit 1, Tamil Nadu

3. Hosur: Unit 2, Tamil Nadu

4. Hosur: Unit 2A, Tamil Nadu

5. Alwar, Rajasthan

6. Bhandara, Maharashtra

7. Pantnagar, Uttarakhand

The current M.D is Mr. Vinod K Dasari who is looking forward to make it more globally

accessible.

Some of the products offered are: Mitr (Bus), U-Truck, Comet, Tippers, Dost (SCV), Partner

(LCV) etc. From 18seater to 82seater double-decker buses, from 7.5tonne to 49tonne

in Haulage vehicles, from numerous special application vehicles to Diesel engines

for industrial, marine and genset applications, Ashok Leyland offers a wide range of products.

LYNX & STAG are the two variant in school buses offered by Ashok Leyland in ICV

(Intermediate Commercial Vehicle) Segment.

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The Five AL Values are:

1. International.

2. Speedy.

3. Value Creator.

4. Innovative.

5. Ethical.

Vision

Be in the Global Top 10 in Medium & Heavy Commercial Vehicle Trucks (> 7.5T GVW)

&

Global Top 5 in Medium & Heavy Commercial Vehicle Buses (8M and above) in Volume terms

Mission

Identifying with the customer.

Being the lowest cost manufacture.

Global benchmarking our products, processes and people.

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Quality Policy

Ashok Leyland is committed to provide world class products and services to delight customers

while complying with all regulatory requirements.

Towards this, we will implement “Total Quality Management” with the involvement of all our

employees, suppliers and network partners by:

Aligning all activities towards out vision “To be in the Global Top 10 in Medium &

Heavy Commercial Vehicle Trucks (> 7.5T GVW) & Global Top 5 in Medium & Heavy

Commercial Vehicle Buses (8M and above) in Volume terms.

Continually improving our products & processes to deliver superior value to all

stakeholders.

Nurturing a culture of excellence and innovation.

MANAGING DIRECTOR

(2013)

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About the industry:

India is an important educational center in the global education industry. India has more than

1.4 million schools and more than 35,000 higher education institutes and there is still a lot of

potential for further development in the education system.

In this potential to grow educational institutes are having a requirement for school buses. School

Bus represents a vital link in the transportation of school children in India. Reliable schools

require a significant number of school buses to ensure that the children will be able to get to and

from school properly. Indeed, the school bus segment is one of the most important money

spinners for commercial vehicle manufacturers are ever increasing day by day.

Direction of the Supreme Court of India for School Bus:

“School Bus” must be written on the back and front of the Bus.

If it is a hired bus, “On School Duty” should be clearly indicated.

Bus must have a First-Aid-Box.

The windows of Bus must be fitted with horizontal grills.

There must be a Fire Extinguisher in the Bus.

School Name and Telephone No. must be written on the Bus.

The doors of the Bus should be fitted with reliable locks.

To keep School Bags safely, there should be a space fitted under the seats.

School cabs should be fit with speed governors with maximum speed limit of 40Kmph.

The body of school Bus shall be highway yellow color with a horizontal strip in green

color of 150mm width in the middle all around the vehicle and the words ‘SCHOOL

BUS’ must be prominently displayed on all four sides of the vehicle.

There must be enough space provided to keep school bags inside the vehicle and the bags

should not be hung outside the vehicle or placed on roof carriers.

Two emergency exits are mandatory on all school buses in India. One on the rear half of

the bus on the right hand side and on the rear side of the bus. Children should be trained

to operate these doors.

Whenever the bus passenger door or one of the emergency exits is open, the bus should

be incapable of motion. The driver should get an indication of the doors being open by

means of flashing light/buzzer or other suitable means.

The lowest footstep height shall not be more than 220mm from ground. The bus should

be incapable of motion without folding or retracting the steps.

All seats other than the ones facing the passenger step well should be forward facing.

Also, a partition should be provided to the seat facing the step well.

Stopping signals, a hazard warning and a stop signal arm should operate whenever the

passenger door opens.

A tamper-proof speed governor that complies with the requirements of Rule 118 of CMV

(A) R 1989 should be provided to ensure the driver doesn’t cross the speed limit.

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Commercial Vehicle manufacturers took the government specified norms for school buses as a

huge opportunity to offer factory made Fully Built Buses (FBV) complying with all the design

and safety standards with certain student friendly features at a nominal price with various seating

capacity options.

The school – Bus market is rapidly growing segment. Of the 60,000 buses sold in India annually,

Schools account for nearly 10,000. This segment has grown at 20% the last 5years. The potential

can also be gauged by the fact that there are 14 Lakh schools across the country & only near

about 5 Lakh schools have school buses, which means 65% of the school market is still

untapped.

The major producers of buses in India are Ashok Leyland, TML, SML, EML and M&M.

However, there are huge sub-categories of buses like commuter Bus, School Bus, Electric bus,

tourist bus, and Mini bus and so on. In India, CNG buses have occupied the huge market thus

making it a fuel efficient and environmental friendly vehicle.

According to industry estimates, about 80% of School Bus sales happen during March –

July.

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LYNX AND STAG:

These models have been created by Ashok Leyland to provide high standard safety when it

comes to children. It has been designed to support educational institute and share the

responsibility by providing them with the-state-of-the-art transport solutions that ensures highest

standards of safety, with an ultra- low entry foot step. It provides the children with individual

seat belts in specific seats, hand-rest on the aisle seats, also keep them safe and prevent them

from falling in case of sharp turns. The large windows are guarded with grills to provide the

children with fresh air without fear. It is also equipped with fire extinguisher, first aid kit & 2

Emergency exits in case of emergency.

Ashok Leyland tries it level best to provide the passengers with a comfortable travel experience

that is economic and travel free.

In Lynx: No. of seats available 37 + D, 41 + D &49 + D

In Stag: No. of seats available 28 + D, 34 + D &40 + D

Competitor Brands:

TATA: Tata Motors is the world's fourth largest bus manufacturer with the most complete range

of transit vehicles that meet every need of every segment with technological benchmarks. It

manufactures a variety of premium buses and coaches that cater to the entire gamut of utility

vehicles and applications, from luxurious inter-city travel options to safe transport choices for

school going children. So whether you want to ensure that your child reaches school safely or

wishes to take your family out on a holiday trip to the nearby hotspot, buses from Tata Motors

guarantee a journey that is pleasant and comfortable.

In Starbus Skool – 16seater, 20seater, 26seater, 36seater, 40seater & 52seater

In Starbus Ultra Skool– 30seater, 36seater, 42seater, 46seater & 56seater.

In CityRide Ex Skool - 12seater, 16seater, 20seater, 26seater, 36seater, 40seater & 50seater.

In SkoolMan 56seater with (3 X 2) Layout.

Even they have School Winger and vans (6seater to 12Seater) for school purpose.

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MAHINDRA: Mahindra’s idea is to build company around core idea that people will succeed

only when they have opportunities. Internally, it follows three basic tenets—accepting no limits,

thinking alternatively, and driving positive change in everything we do. These brand pillars

guide all their actions and business decisions from deciding whether or not to enter a new field or

planning a portfolio of services.

They are also trying to utilize the potential market of school buses having a range of school

buses in CRDs and CNG engines.

In Touristor Excelo – 15seater, 25seater, 32seater & 36seater.

In Tourister Cosmo – 16seater, 25seater, 32seater & 40seater.

SWARAJ MAZDA: ML Isuzu Limited (SMLI) is a trusted and reliable commercial vehicle

manufacturer since 1985. SMLI is a first company to manufacture fully built buses, and

customized Vehicles.

Sumitomo Corporation, Japan & Isuzu Motors, Japan respectively holds 44% and 15%

shareholding in the company.

The company also offers school buses to the Educational Institute and provides vehicles

designed for new generation with new ideas.

They have two models S7 and Turbo T3500

Turbo T3500 – 18seater, 20seater, 24seater, 26seater, 32seater &40seater.

S7– 41seater.

EICHER: The new Starline and Skyline school buses of Eicher buses are offering superior

vehicle performance with safety feature, superior comfort and redefined styling. Jointly designed

by Eicher & IRTE (Institute Of Road traffic education) the bus offers safe and sound journey to

children with care and comfort.

Starline - 16seater, 40seater & 56seater.

Skyline - 24seater, 32seater, 50seater & 65seater.

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METHODOLOGY

Methodology for the Project “Market Research on Institutional Customer requirement in ICV

segment” includes Market Research. However, it includes Primary collection of data. Primary

collection of data has been done with a Questionnaire which was prepared by me & is unbiased

and unambiguous.

The data was collected through face to face in-depth interview and through phone interview from

Dealers of Ashok Leyland and Educational Institutes in Krishnagiri district.

The information from different Dealers of other brands has been collected as a student of

Kirloskar Institute of Advanced Management Studies doing a survey on ICV Segment. For these

dealers a Questionnaire has been prepared by me to know the relevant information and findings.

List of Educational Institute in Krishnagiri District is company database. As well assume of the

information related to the Dealership of our brand and Competitor’s brand has been provided by

the company.

Firstly I interacted with Ashok Leyland Dealers collecting the Brochure & Information about the

models, specifications, features, price, getting an over view of all the safety features- design and

layout recommended by the government for the safety of the student. Getting an idea about

customer’s preferences and wants. Then interacting with competitor’s brand dealership.

Collecting the Brochure and Information related to my prepared questionnaire about price,

models, customer’s preferred seating range, customer’s expectations, no. of service center, sales,

their scheme and offerings to customers. Lastly, Interacting with Educational Institute knowing

about the brand & model they use, what are their buying preferences, seating preference,

expected price range with value addition & suggestion from their side to Ashok Leyland,

feedback about LYNX and STAG, etc.

Categories of research:

1. Educational Institute.

2. Dealers Research.

Market Research QuestionnaireFace to face Interaction/

Telephonic Interview

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Steps followed:

1. Form a sample size, prepare a relevant questionnaire.

2. Collect the data/information from ICV dealers, Educational Institutions

3. Record the data.

4. Analyze and interpret the findings.

5. Give suggestions and feedback to the companies.

Sample size

Under ICV (Intermediate commercial vehicle) segment school bus lies in the range of 9tonnage

to 12tonnage having a seating capacity of 28seater to 50seater and are meant for educational

purpose.

There was a dealership fair in Krishnagiri, where I had face to face interaction with the dealers

and I have collected the accurate data about the product and customers from the under mentioned

dealers.

TVS Authorized Dealer of Ashok Leyland.

1. Krishnagiri

2. Selam

3. Madhurai

4. Nammakkal

5. Sangagiri

I had face to face interaction with the Dealers of other brand to gather information’s regarding

their brand, sales, features and their satisfaction level according to their brand.

1. TML VST Motors ltd. Hosur, Tamil Nadu.

2. EML Jai Laxmi Auto workshop & agencies Pvt. Ltd.

3. M&M Ari ARN Motors.

4. SML SML Isuzu Ltd.

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I have collected data from 50 educational Institute in Krishnagiri district. I have taken it with a

considerable fleet varying from 3 school buses to 75school buses in different schools and

colleges.

1 St. John Bosco School. 2 Adhiyamaan Engineering College.

3 ParimalamMatriculation Higher

Secondary School.

4 ShriBharatiVidayalayaMatriculation

Higher Secondary School.

5 Seventh Day. 6 KKP Matriculation School.

7 TVS Academy. 8 SRV Matriculation School of

Excellence.

9 MaharshiVidyaMandir. 10 Sri BCR Matriculation School.

11 Sishya School. 12 VelankaniMatriculation Higher

Secondary School.

13 Achiever’s Academy. 14 Sri SawarashwathiVidiyalaya.

15 Litera Valley Zee School. 16 Crescent Matriculation Higher

Secondary School.

17 Nalanda International Public School. 18 Euro Kids.

19 RIMS. 20 Mathagondapalli Model School.

21 SwathiMatriculation Higher Secondary

School.

22 Shemford Futuristic School.

23 Shri Vijay Vidayalaya Matriculation

Higher Secondary School.

24 ParimalamManimekala Engineering

College.

25 St. Joshep Matriculation Higher

Secondary school.

26 Manchester School.

27 Green Valley School. 28 Holy Cross Matriculation Higher

Secondary School.

29 Sri Ramkrishna School. 30 Sri SawarashwathiVidiyalaya.

31 Advith International Academy. 32 Sri VidyaMandir Matriculation

School.

33 Siddharth Village School. 34 Dimond Stone International School.

35 Hosur Public School. 36 SVET Institute.

37 Ashok Leyland School. 38 Canara Insitute.

39 The Titan school. 40 Sri Annapurna School.

41 MGR. 42 Hosur Institute Of Technology

&Science.

43 CSI. 44 KET Polytechnic College.

45 St. Joshep ITI & Polytechnic. 46 Euro Kids.

47 Cambridge School. 48 Eternal Light Public School.

49 Bharat International School. 50 VIS.

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Questionnaire 1: For Educational Institute:

Institution Name

Address

Strength :

Bus Hostel

Contact Details

Name Contact Number Designation

Primary contact

Key Mgmt. Person

1. The most preferred key factors in purchases.

BRAND MODEL

SITTING RANGE PRICE

(i) If Brand, please name the Brand.(please tick)

Ashok Leyland TATA Eicher SML

Mahindra Force Motors Swaraj Mazda Others__________

(ii) If Model ,please name the model (please tick)

Skyline Turbo T3500 Starbus Tourister Stag

Starline S7 Cityride Cosmo Lynx

(iii) If seating capacity, what is the preferred range _____________.

(iv) If Price, what is the price you are expecting ________________.

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2. Number of vehicle you own in each variant:

Vehicle Details

28 to 50Seater (ICV) > 50Seater (MDV) <28Seater

AL

EML

TML

SML

M&M

Total

3. Most preferred feature in ICV Segment:

Safety Price affordability Driver’s comfort Spacious & comfort Mileage Fuel capacity & Efficiency Seating Range Design & Looks Cost of Maintenance Spare Parts Availability After sales service Brand Reliability

4. Your buying preference: Chassis FBV

(i) What is the influencing factor for such kind of purchase? _____________________

(ii) From where you get finance for these vehicles? ____________________________

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5. On what factor your owned Vehicle in ICV segment is better than other brand’s Vehicle:

Safety and comfort Price affordability Accessories Local Mechanics availability Fuel capacity & Efficiency Seating range Body – Building Cost of maintenance Spare part availability Quality

6. If you own Ashok Leyland’s ICV. What problems you are facing currently:

Service center availability Quality Safety & comfort Price affordability Body – Building Fuel capacity & Efficiency Cost of Maintenance Spare parts availability Accessories Local Mechanics Availability Sitting Range Others please specify _ _ _ _ _ _ _ _ _ _ _ _

7. Are you planning to switch to another brand for new purchases? Yes No

If yes:

Brand__________________________________ Model__________________________________ Seating Range____________________________ Reason _________________________________

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8. Do you have any suggestions for improvement in ASHOK LEYLAND SCHOOL BUSES ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

**********************

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QUESTIONNAIRE 2: FOR DEALERS OF OTHER BRANDS DEALERSHIP NAME: LOCATION: PERSON INCHARGE: CONTACT: EMAIL ID:

1. Name of the brand you deal with: Eicher(EML) Tata Motors(TML) Swaraj Mazda(SML) Mahindra(M&M)

2. Number of School bus you sold monthly in ICV segment in Krishnagiri?

3. Models you have in ICV segment: One Two Three More than Four

4. Seat capacity you have in each model: ______________________________________________________________________________________________________________________________________________________

5. Price of these models according to Seating capacity:

MODEL SEAT CAPACITY PRICE

(i) Seating capacity mostly preferred by customers. ___________________________ (ii) Price range a customer expects. ___________________________

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6. Do you have your own Body- builder?

7. No. of service center you have in Krishnagiri?

8. Years of warranty provided by your brand

(I) Are there any schemes and offers provided by you to customers? ______________________________________________________________________________

9. Any suggestions given by the customers for improvement in school bus? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

10. Do you think any improvement can be done from your side to increase your sales?

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

*********************

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QUESTIONNAIRE 3: FOR DEALERS OF ASHOK LEYLAND: DEALERSHIP NAME LOCATION PERSON INCHARGE CONTACT NO. EMAIL ID:

1. Which model of school buses of Ashok Leyland is preferred more? Stag Lynx

2. Which seating capacity is more preferred by the customers? 26seater 32seater 38seater 34seater 39seater 47seater

(I) what is the price range a customer expects? _____________________

3. No. school buses you sell approximately in a month? ____________________

4. Suggestions given by customers to improve in Ashok Leyland’s School buses: __________________________________________________________________________________________________________________________________________________

5. Suggestions or improvement for ASHOK LEYLAND’s School buses.

________________________________________________________________________________________________________________________________________________________________________________________________________________________

***********************

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FINDINGS AND CONCLUSION

NUMBER OF VEHICLE SOLD IN TAMIL NADU

NAME OF THE BRAND NO. Of VEHICLES SOLD IN 2014 – 15

Ashok Leyland 274

EML 357

TML 164

SML 182

M&M 84

TOTAL 1061

*As per company database.

INTERPRETATION: Eicher has sold highest no. of vehicles in Tamil Nadu i.e. 357.

Mahindra & Mahindra sold least no. of vehicles i.e. 84.

ASHOK LEYLAND being second highest seller in ICV segment in Tamil Nadu by selling

274 no. of vehicles.

Ashok Leyland,

274

EML, 357

TML, 164

SML, 182

M&M, 84

No. of Vehicles sold in Tamil Nadu

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Sales Trend of all brands in 2014 – 2015 in Krishnagiri District.

NAME OF THE BRAND NO. OF VEHICLE SOLD IN 2014 – 2015

Ashok Leyland 14

EML 17

TML 10

SML 7

M&M 4

TOTAL 52

INTERPRETATION: In Krishnagiri District the highest no. of vehicle sold in FY2014 - 15 is by

Eicher i.e. 17 Nos.

Whereas, Ashok Leyland being 2nd sold 14 Nos. of vehicles in ICV segment.

*As per company data base.

27%

33%

19%

13%8%

NO. OF VEHICLES SOLD IN KRISHNAGIRI IN ICV SEGMENT(%) FOR SCHOOL BUS( 2014 - 15 )

Ashok Leyland EML TML SML M&M

26

*As per company data base:

In FY2013 – 2014, Ashok Leyland has sold 12Nos. of school bus & in the FY2014 – 2015, they

sold 14Nos. of school bus in Krishnagiri. It shows an increment of 16.67% in Krishnagiri

district. The company is currently having a Market Share of 27% and they are targeting to

achieve 40%Market Share in this Fiscal Year in Krishnagiri.

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FINDINGS ACCORDING TO MY STUDY

Preference given by customers during purchase of a school bus in ICV segment.

DECIDING FACTOR NO. OF RESPONDENT

BRAND 13

PRICE 14

MODEL 5

SEATING RANGE 18

TOTAL 50

*As per Institutional Feedback.

INTERPRETATION: For purchasing a School Bus the first thing Educational Institute look

into is Seating Range followed by Price than Brand.

26%

28%10%

36%

DECIDING FACTOR

BRAND PRICE MODEL SEATING RANGE

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IF BRAND:

BRAND NAME PREFRENCE

Ashok Leyland 15

EML 11

TML 7

SML 5

M&M 4

*As per Institutional Feedback.

INTERPRETATION: According to the above graph Ashok Leyland is mostly preferred brand by

Educational Institute in Krishnagiri.

36%

26%

17%

12%

9%

BRAND PREFRENCE IN ICV SEGMENT FOR SCHOOL BUS

Ashok Leyland

EML

TML

SML

M&M

29

IF MODEL:

*As per Institutional Feedback.

INTERPRETATION: As per responses collected by customers Model wise preference is given to

Starline of Eicher then Skyline.

Starbus of Tata, Tourister of Mahindra is also now a day preferred by customer in FBV.

IF SEATING RANGE:

INTERPRETATION: As per Institutional response, Educational Institute prefer mostly 32 –

40seater in ICV segment & Colleges prefers more than 50seater that falls in the segment of HCV

(Heavy commercial Vehicle).

IF PRICE:

INTERPRETATION: As per Institutional response, they are likely to invest from 14lakhs to

17lakhs.

I have made a comparison in price of different brands from 32 – 40seater as they are likely

preferred.

Skyline, 1

Starline, 2

Starbus, 1

Tourister, 1

MODEL PREFRENCE IN ICV SEGMENT FOR SCHOOL BUS

Skyline

Starline

Starbus

Cityride

Turbo T3500

S7

Lynx

Stag

Tourister

Cosmo

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PRICING STRATEGY OF EICHER

EICHER

VARIENT

EX-

Showroom

Price

RTO

Charges(Quarterly

charges) Insurance

Speed

Governor

Charges Discount TOTAL

SKYLINE

(32+1Seater) 1608000 36000 52000 13000 100000 1609000

STARLINE

(41Seater) 1725725 46000 59000 13000 100000 1743725

PRICING STRATEGY OF SWARAJ MAZDA

SML VARIENT

EX-

Showroom

Price Registration Insurance

Tax upto

March

R.T.alt

charges TOTAL

TURBO(32Seater) 1623586 31000 53750 6400 124736 1650000

S7(41Seater) 1696789 33000 64994 8200 112983 1750000

PRICING STRATEGY OF TATA MOTORS

TML VARIANT

EX-

Showroom

Price Registration Insurance

Speed governor

charges TOTAL

CITYRIDE(36seater) 1619360 57384 25000 15000 1716744

CITYRIDE(40seater) 1689884 60905 27000 15000 1792789

STARBUS(40seater) 1704912 27000 61152 15000 1808064

PRICING STRATEGY OF MAHINDRA

M&M

Variant EX-

Showroom Insurance

Road-

Tax

Annual

Reg.

Charges

Speed

governor

Free

Fitted T/R Permit Total

32seater 1124834 40703 3800 6000 0 1500 5500 1182334

40seater 1347230 51210 5500 6000 0 1500 5500 1416940

PRICING STRATEGY OF ASHOK LEYLAND

Variant

Ex-Showroom

Price Insurance

T/R

charges

Registration

Charges Total

Ashok

Leyland

Stag 34Seater 1609870 40000 8000 6700 1664570

stag 40Seater 1762155 45000 8000 7000 1822155

Lynx41Seater 1814825 48000 8000 7050 1877875

INTERPRETATION: For 34seater Ashok Leyland enjoys the monopoly.40 & 41seater of

Ashok Leyland ranges higher than other brand.

31

PRESENT VEHICLE DETAILS OF EDUCATIONAL INSTITUTE IN ICV SEGMENT:

BRAND NAME NO. OF VEHICLES

Ashok Leyland 104

EML 89

TML 67

SML 43

M&M 21

*As per Institutional Feedback.

INTERPRETATION: Ashok Leyland is having 32% Market Share in Krishnagiri.

Least Market share is of M&M with only 7%.

Ashok Leyland32%

EML27%

TML21%

SML13%

M&M7%

MARKET SHARE IN KRISHNAGIRI

32

Preferred features in ICV segment while making any purchase decision:

FEATURES No. Of Respondents IN PERCENTAGE

SAFETY 35 70%

PRICE AFFORDABILITY 42 84%

DRIVER'S COMFORT 10 20%

SPACIOUS AND COMFORT 18 36%

MILEAGE 22 44%

FUEL CAPACITY &EFFIENCY 16 32%

SEATING RANGE 40 80%

DESIGN & LOOKS 8 16%

COST OF MAINTENANCE 24 48%

SPARE PARTS AVAILABILITY 32 64%

AFTER SALES SERVICE 38 76%

BRAND RELIABILITY 12 24%

RESALE VALUE 6 12%

*As per Institutional Feedback.

INTERPRETATION: The preferred feature by a customer while making buying decision in

ICV segment is to be price affordable with preferred seating range.

70%84%

20%36%

44%32%

80%

16%

48%64%

76% 24% 12%

Safety

Price affordability

Driver's Comfort

Spacious and Comfort

Mileage

Fuel Capacity & Effiency

Seating RangeDesign & Looks

Cost of Maintenance

Spare Parts Availability

After Sales Service

Brand Reliability

Resale Value

PREFFERED FEATURES BY CUSTOMERS IN ICV SEGMENT

33

BUYING PATTERN:

Buying Pattern No. Of Respondent

CHASIS 35

FBV 15

INTERPRETATION:

(I) According to preference of Educational Institutes, they like to buy Fully Built Vehicle

(FBV) for their institutions according to government specified norms.

People preferring Chassis model thinks that, they can increase no. of seats in their vehicle by

giving it to any other Pvt. Body builder and can add on the accessories according to their

requirement.

(II) Educational Institute mostly get finance for school bus through their school reserves.

And some may take the help of banking institutions for getting loan for their vehicle.

30%

70%

BUYING PATTERN FOR SCHOOL BUS

CHASIS

FBV

34

Problem faced by customer of school buses in ICV segment (Ashok Leyland):

FEATURES No. Of Respondents (%) No. Of Respondents

Quality 4% 2

Price 86% 43

Safety & comfort 10% 5

Body-building 36% 18

Fuel capacity and efficiency 22% 11

Cost of maintenance 14% 7

Spares part availability 48% 24

Accessories 40% 20

Local mechanics availability 24% 12

seating range 62% 31

service centre availability 54% 27

INTERPRETATION: The Prices of Ashok Leyland school buses are very high whereas

Quality wise Ashok Leyland is the reliable & leading brand.

4%

86%

10%

36%

22%14%

48%

40%

24%

62%

54%

QUALITY

PRICE AFFORDABILITY

SAFETY & COMFORT

BODY-BUILDING

FUEL CPACITY AND EFFCIENCY

COST OF MAINTENANCESPARES PART AVAILABILITY

ACCESSORIES

LOCAL MECHANICS AVAILABILITY

SEATING RANGE

SERVICE CENTRE AVAILABILITY

PROBLEM FACED BY ACTUAL USERS OF ASHOK LEYLAND

35

The below graph shows ranking from 1 to 5 for various preferred features given by customers

in connection with other brands & explains the vehicle’s leading and lagging in different

parameters with respect to other brands.

0

1

2

3

4

5

SERVICE CENTERAVAILABILITY

QUALITY

SAFETY AND COMFORT

PRICE

BODY-BUILDING

FUEL CAPACITY & EFFIENCYCOST OF MAINTENANCE

SPARES PART AVAILABILITY

ACCESSORIES

LOCAL MECHINENISAVAILABILITY

SEATING RANGE

RANKING GIVEN BY CUSTORMES TO PREFERRED FEATURES IN COMPARISION TO OTHER BRAND

ASHOK LEYLAND EML TML SML M&M

36

Description about the concept & model introduced in the study:

Segmentation-Targeting-Positioning (STP) Analysis:

According to my study for this research, the concept I have used is Segmenting, Targeting and

Positioning. With the help of STP, I will be able to know customers preference & buying

behavior.

SEGMENTATION –

Segmentation involves dividing a broad target into subsets according to customer’s preference,

features and priorities and then designing and implementing strategies to target them.

Targeting the customers of ICV segment. (28 – 50Seater)

Brand sensitive, Performance sensitive, price sensitive, balanced perspective.

TARGETING –

Targeting is done with defining the resources required in the market, knowing companies

resources then comparing with potential of competitor’s brand, and then deciding the actual

target market.

Educational Institute ( schools & colleges )

POSITIONING –

Positioning is the marketing activity to identify the markets problem or opportunity and then

launching the feature with specific in the target market.

Launching “Lynx & Stag” with more value added services at a nominal price & with

more aesthetic looks.

37

SWOT ANALYSIS:

STRENGTH

1.Brand Name

2. Quality Of Product

3. Customer's Loyality

4. Safety & comfort.

WEAKNESS

1.Less Seating range

2.High Price

3.Body-builders

4. Less no. of service center availability.

OPPORTUNITY

1.New techology.

2.Increasing no. of Educational Institute.

THREATS

1.Change in government norms.

2. Competitors.

38

Interpretations and conclusions

The major player in ICV segment in Tamil Nadu is Eicher with 357no. of vehicles sold in

FY2014-15

The major player in ICV segment for school bus in krishnagiri district is Eicher with

14no. of vehicles sold in FY2014-15

Highest no. of vehicles (17nos.) sold by Eicher in Krishnagiri in FY2014 – 15.

Ashok Leyland has sold 14nos. of school bus in FY2014-15 & has increased its sales

growth by 16.66% in Krishnagiri from 2014 to 15.

Customer purchase ICV based on parameters like:

Price affordability.

Seating range.

After sales service.

Safety.

Spare parts availability.

Most of the people knows Ashok Leyland’s model name by its year of purchase, not by

‘Lynx & Stag’ model.

Preferred seating range in Krishnagiri district is 32 – 40seater for schools, 50seaters for

colleges.

Ashok Leyland enjoys the benefit of Brand name in Krishnagiri & is having the highest

market share of 32% followed by Eicher with 27%.

FBV according to the government specified norms are preferred mostly preferred by

Educational Institute.

After sales services, Spare parts availability is main requirement of Educational Institute

for their convenience.

Major problem of actual users of Ashok Leyland is the high prices and followed by less

seat range and less service center availability for school buses.

39

The customer who are brand loyal and takes Ashok Leyland for its Quality are switching

to other brands because of lesser seating range needed by them for transportation service

which is not provided by Ashok Leyland.

Heavy aggregates are being used by Ashok Leyland for school buses which gives lesser

mileage as compared to other brands though it’s not the key requirement of Institutions

as they don’t use for commercial purpose and just use is for pick and drop service for

children.

Those customers coming for walk-ins in the dealership, reports the vehicle lacks

aesthetics.

40

Recommendations

Adapting viable and necessary modification as per customer’s feedback.

Promote the product through Value engineering workshops.

In order to improve the marketing Strategy of Ashok Leyland the company has to start

working from December as according to the analysis the highest no. of vehicles sold is in

the month of March to July.

To have only one body builder for school buses as customers who wants a specific

standard in their vehicle are finding it difficult to get as they report difference in color,

parts, codes, etc. Poor body-building will give a bad image of company’s Quality

product.

Offers to be provided to customers as most of them are price sensitive.

Use of website to make ‘LYNX & STAG’ more attractive and remembered model.

41

Limitations

Difficulties in getting relevant data from company as the executives were very busy in

their schedule.

Convincing and getting appointment from the institutions to give relevant feedback.

Difficult to find the respective person in school to give proper feedback as April – May is

the time of report card distribution or the schools were getting closed due to summer

holidays.

Dealers of other brands not willing to disclose useful information.

Lack of interest of the concerned persons to give response. Getting neutral responses for

all questions made my work difficult to analyze the actual situation.

42

Scope for future improvements

India has more than 1.4 million schools and more than 35,000 higher education institutes.

India has one of the largest higher education systems in the world and there is still a lot of

potential for further development in the education system. In this potential to grow

educational institutes are having a requirement for school buses, If Ashok Leyland take it

as an opportunity and make viable and necessary modifications according to customer’s

requirement company will be able to increase its market share.

Increase the range of seating capacity in order to give the customers required seating

preference, so the customer won’t switch to other brands & will increase market reach.

Number of School bus in ICV segment is has a potential to increase in future.

Providing the institute FBV according to government specification norms with additional

features like CCTV and GPS tracking device with AC, as these are the new requirement

of most of the International or Elite schools.

Increase promotional activity and event like school fest by which company will try to

connect to more school across country.

43

Bibliography

http://www.team-bhp.com/forum/commercial-vehicles-india/135810-tata-motors-loses-mhcv-market-

share-ashok-leyland-gains.html

http://www.ashokleyland.com/

http://www.edb.gov.hk/en/student-parents/safety/sch-bus-services/index.html

www.teambhp.com

www.articles.economictimes.in