Summer internship Report(TVS) by Bhargava Sai Kumar

11

COMPETITOR ANALYSIS OF SCOOTERS,

CUSTOMER RESERVATIONS ON

TVS JUPITER

A Training report submitted in the part fulfillment of the

requirements for the award of

“Post Graduate Diploma in Management”

Year 2014-2016

Project Mentor Industry mentor

Prof. R.J. Masilamani J. Naresh Kumar

BIMTECH, Greater Noida Sales manager,

Vijayawada Territory,

TVS motors

An effort by –

Bhargava SaiKumar Sudikonda-14DM059

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SUMMER PROJECT CERTIFICATE

This is to certify that Mr. Bhargava SaiKumar Sudikonda, Roll No. 14DM059, a student of

PGDM (Marketing), BIMTECH, has worked on a summer project titled “COMPETITOR

ANALYSIS OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” at TVS motor

company Limited after Trimester-III in partial fulfillment of the requirement for the Post Graduate

Diploma in Management program.

This is his original work to the best of my knowledge.

Date: -----------------------------------------

(Prof. RJ Masilamani)

BIMTECH SEAL

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ACKNOWLEDGEMENT

I would like to gratefully acknowledge my thanks to all the people who took active part in my

active part and provided valuable support to me during the course of this project. To begin with, I

would like to acknowledge my sincere thanks to “J. Naresh Kumar, Territory Sales Manager

(AMD) – Vijayawada” for providing me the opportunity to do my summer training at “TVS

Motor Company”. Without their guidance, support, and valuable suggestions during the

research, the project would not have been accomplished.

My heartfelt gratitude also goes to Mr. Sandeep Chukkala and Mr. Rajesh Babu for their co-

operation and willingness to answer my queries, which made the project possible.

I also sincerely thank “Prof. R. J. Masilamani, PGDM-IIMA”, my faculty mentor at

BIMTECH, who provided valuable suggestions, shared his rich corporate experience, and helped

me script the exact requisites.

Last, but not the least, I would like to thank Kusulava TVS, dealer of TVS Motor Company for

sharing their experience and giving their valuable time to me during the course of my project.

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LETTER OF TRANSMITTAL

Birla Institute of Management Technology

Plot no. 5, Knowledge Park-II, Institutional Area,

Greater Noida (NCR), U.P-201306, INDIA

Date:

Mr. J. Naresh Kumar,

TVS Motor Company Pvt. Ltd

Vijayawada.

Dear Sir,

Re: Summer Project Report

Attached herewith is a copy of my summer-project report “COMPETITOR ANALYSIS OF

SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” which I am submitting in

order to mark the completion of an 8-week summer project at your organization. This report was

prepared by me using the best of practices and summarizes the work performed on the project and

is being submitted in partial fulfilment of the requirements for award of diploma.

I would like to mention that the overall experience with the organization was very good, and

helped me to know how work is carried out in real practice with the help of your esteemed

organization. I feel honoured that I got an opportunity to work with TVS Motor Company, a

company of great repute.

I hope I did justice to the project and added some value to the organization.

Suggestions/comments would be appreciated.

Yours truly,

Bhargava SaiKumar Sudikonda

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LETTER OF AUTHORIZATION

I, Bhargava SaiKumar Sudikonda, a student of Birla Institute of Management Technology

(BIMTECH), hereby declare that I have worked on a project titled “COMPETITOR ANALYSIS

OF SCOOTERS, CUSTOMER RESERVATIONS ON TVS JUPITER” during summer internship

at TVS Motor Company, in partial fulfilment of the requirement for the Post Graduate Diploma in

Management program.

I guarantee/underwrite my research work to be authentic and original to the best of my

knowledge in all respects of the process carried out during the project tenure.

My learning experience at TVS Motor Company, under the guidance of J. Naresh Kumar,

Territory Sales Manager, and Prof. R. J. Masilamani, PGDM-IIMA, has been truly enriching.

Date: _______________

(Bhargava Sai Kumar Sudikonda)

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TABLE OF CONTENTS

S.No. SUBJECT PAGE No.

CHAP 1 EXECUTIVE SUMMARY 13

1.1 PROJECT TITLE 13

1.2 COMPANY NAME 13

1.3 OBJECTIVE 13

1.4 SCOPE 13

1.5 METHODOLOGY 13

1.6 KEY FINDINGS 14

1.7 RECOMMENDATIONS 14

1.8 IMPLEMENTATIONS 14

CHAP2 INTRODUCTION 15

2.1 OVERVIEW OF TWO WHEELER INDUSTRY 15

2.2 EVOLUTION OF TWO WHEELER INDUSTRY IN INDIA 15

2.3 MARKET SHARE OF TWO WHEELERS IN INDIA 16

2.4 CURRENT MARKET 17

2.5 SCOOTER SEGMENT 17

2.6 SCOOTER SALES IN VIJAYAWADA TERRITORY 18

2.7 TVS MOTOR COMPANY 19

2.8 MILE STONES 19

CHAP3 PROBLEM DEFINITION 24

CHAP4 APPROACH TO THE PROBLEM 25

CHAP5 RESEARCH METHODOLOGY 26

5.1 RESEARCH DESIGN 26

5.2 DATA COLLECTION FROM SECONDARY SOURCE 26

5.3 DATA COLLECTION FROM PRIMARY SOURCE 26

CHAP6 DATA ANALYSIS 27

6.1 ANALYSIS OF MYSTERY SHOPPING 27

6.2 JUPITER NON CONSIDERATION SURVEY 30

6.2.1 ANALYSIS OF RESPONSES FROM VIJAYAWADA CITY 30

6.2.2 ANALYSIS OF RESPONSES FROM GUNTUR CITY 35

6.3 STUDY ON RESALE MARKET FOR SCOOTERS WITH

FOCUS ON TVS VEHICLES 38

CHAP7 RESULTS AND CONCLUSION 39

7.1 CONCLUSION 39

7.2 RESULT 39

CHAP8 LIMITATIONS AND CAVEATS 50

CHAP9 RECOMMENDATIONS 51

CHAP10 LIST OF EXHIBITS 52

10.1 QUESTIONNAIRE 52

10.2 PICTURES OF 1ST

SUMMER CARNIVAL 53

10.3 PICTURES OF 2ND

SUMMER CARNIVAL 54

10.4 MARKETING ACTIVITY AT VIJAYAWADA 55

10.5 MARKETING ACTIVITY AT GUNTUR 56

CHAP11 REFERENCES 57

CHAP12 GLOSSARY OF ABBREVIATIONS 58

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LIST OF TABLES

TABLE DETAILS PAGE

1 Milestones ofTVS 20

2 TVS Product classification 21

3 Price list of TVS & its competitor products 22

4 Attributes considered for Mystery Shopping 25

5 Attributes considered for Mystery Shopping 27

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LIST OF CHARTS

CHART DETAILS PAGE

1 Market share of Automobiles in the year 2014-15 16

2 Scooter market in 2013 vs 2014 18

3 TVS Product classification 21

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LIST OF GRAPHS

GRAPH DETAILS PAGE

1 Sales report of two wheeler companies 17

2 Market share of Activa and Jupiter in Vijayawada Territory 18

3 Average rating of all showrooms in Vijayawada 28

4 Comparison between Vijayawada Industry and TVS

showroom in Vijayawada

28

5 Average rating of all showrooms in Guntur 29

6 Comparison between Guntur Industry and TVS showroom in

Guntur

29

7 Comparison between Age and reason for buying Activa 30

8 Comparison between Age and difference between Activa and

Jupiter

30

9 Comparison between Previous vehicle used and occupation 31

10 Comparison between mode of payment and occupation 31

11 Comparison between Resale value used and occupation 32

12 Comparison between previous vehicle used and main reason

for buying Activa

32

13 Comparison between mode of payment and annual income 33

14 Comparison between considering resale value while

purchasing and annual income

33

15 Comparison between showroom visitors and showroom

Ambience

34


knowledge

34

17 Comparison between previous vehicle used and occupation 35

18 Comparison between annual income and occupation 35

19 Comparison between Annual income and previous vehicle

used

36

20 Comparison between Reason for buying Activa and previous

vehicle used

36


ambience

37


ambience

37

23 Gender statistics of Vijayawada survey 39

24 Age statistics of Vijayawada survey 40

25 Occupation statistics of Vijayawada survey 40

26 Previous vehicle used statistics of Vijayawada survey 41

27 Annual Income statistics of Vijayawada survey 41

28 Response for most seen vehicle in Vijayawada Survey 42

29 Response for main reason for buying Activa in Vijayawada

Survey

42

30 Response for visiting TVS showroom and considered Jupiter

before buying Activa in Vijayawada Survey

43

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31 Response for main difference between Activa and Jupiter in

Vijayawada survey

43

32 Response for recommending Activa in Vijayawada survey 44

33 Gender statistics of Guntur survey 45

34 Age statistics of Guntur survey 45

35 Occupation statistics of Guntur survey 46

36 Previous vehicle used statistics of Guntur survey 46

37 Annual Income statistics of Guntur survey 46

38 Response for most seen vehicle in Guntur Survey 47

39 Response for main reason for buying Activa in Guntur

Survey

47

40 Response for visiting TVS showroom and considered Jupiter

before buying Activa in Guntur Survey

48

41 Response for main difference between Activa and Jupiter in

Guntur survey

48

42 Response for recommending Activa in Guntur survey 49

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LIST OF EXHIBITS

EXHIBIT DETAILS PAGE

1 Questionnaires used for survey 52

2 Marketing Activity in Guntur 53

3 Marketing Activity in Vijayawada 54

4 1st carnival in Vijayawada 55

5 2nd

carnival in Vijayawada 56

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CHAPTER -1 EXECUTIVE SUMMARY

1.1Project Title: “COMPETITOR ANALYSIS OF SCOOTERS, CUSTOMER

RESERVATIONS ON TVS JUPITER”.

1.2 Company Name: TVS Motor Company Limited.

1.3 Objective: The objective of the project is to make recommendations for increasing sale of

TVS Jupiter in Vijayawada and Guntur regions.

1.4 Scope: Understanding the behavior of scooter customers and the factors they considered as the

most important while making their purchase decision. The study was done in Vijayawada and

Guntur regions.

1.5 Methodology Adopted: The data required to measure and understand the competitors is

collected using MYSTERY SHOPPING and SURVEY METHOD.

1.6 Key Findings:

TVS has low brand image in the minds of customer. Honda and Hero are considered major

brands.

Awareness of TVS Jupiter is less compared to its competitor Honda Activa. Very few

people know about Jupiter and its features.

Sales executives have limited knowledge about their competitor products.

TVS is focusing on a push strategy rather than pull.

Showroom ambience plays a major role in retaining customer.

1.7 Recommendations:

Impart knowledge to sales executives on competitor products.

There is no more belief that scooter segment is for women, it is better to have both men

and women sales executives for scooter segment.

Sales executives should do regular follow up with customers and get feedback as also

provide help where needed either through expediting After Sales Service or providing

advice where asked for.

Proper recruiting of sales executives will have a great positive impact on sale of TVS

products.

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Run Customer Reward Programs like giving offers to existing TVS customers.

Proper enquiry quotation should be maintained.

Adequate availability of spare parts should be ensured at reasonable prices.

1.8 IMPLEMENTATIONS:

Enquiry & Quotation form is implemented for customers at TVS showrooms in

Vijayawada territory.

Jupiter key chains were distributed as a part of promotional activity to increase awareness.

Training classes were conducted to sales executives on competitor products.

Post sale feedback (PSF) is going to be implemented.

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CHAPTER-2 INTRODUCTION

2.1 Overview of the Indian Two Wheeler Industry:

Automobiles constitute one of the largest industries in the global market. Being the leader in

product and process technologies in the manufacturing sector, it has been recognized as a driver

of economic growth.

In the last few years steps like abolition of licensing and various initiatives have been taken to

bring the policy framework in accordance with the WTO requirements to set the industry on a

progressive track. Removal of trade restrictions has helped in restructuring the industry and to

absorb new technologies. This has also led to intense competition and also on the positive side

advancement in technology and better product features.

2.2 Evolution of Two-Wheeler Industry in India:

The two-wheeler segment is one of the most important components of the automobile sector and

has undergone significant changes due to shifts in the trade policies in the last two decades. The

two-wheeler industry has been in existence in the country since 1955.The two-wheeler market

was opened for foreign companies in the mid 1980’s which led to an increase in the number of

brands competing and hence the advancement in the features at competitive prices. Indian two-

wheeler industry has seen spectacular growth in recent years. Presently, India is the second largest

producer and manufacturer of two wheelers in the world.It consists of three segments: scooters,

motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers

in automobile sector in terms of units sold was about 76 per cent during 2010-11. The high

percentage is suggestive of the importance of the sector. In the initial years, entry of firms,

capacity expansion, choice of products including capacity mix and technology along-with all

critical areas of functioning of an industry were effectively controlled by the State machinery.

However, some major set of reforms launched in the year 1991 in response to the macroeconomic

crisis faced by the economy shifted the policies from a regime of regulation and tight control to a

more liberalised and competitive era. Two major results of policy changes during these years in

two-wheeler industry were that the:

1) Weaker players perished giving way to the new entrants and superior products and

2) Increase in number of brands that entered the market which forced the firms to compete on the

basis of product features.

I believe that the scope of growth in the 2 wheeler industry is lucrative in future because of the

following reasons:

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There are limited players to enjoy growth. About 95% of the market share is shared

amongst four players of which three are Indian companies (Hero, Bajaj and TVS) the

fourth is Honda.

Rising income levels of people is also a favorable indication.

About 70% of India’s population is between 15 to 50 age group. As this age group

comprises bulk of working class so this age group can be of vital importance in deciding

the future of the 2 wheeler segment and the economy as well.

Rural India accounts for more than 60% of total population of India so this presents a

major opportunity for the 2 wheeler companies.

There is a considerable difference between two wheelers and car prices that makes two

wheelers the obvious choice for majority of people.

2.3 Market share of two wheelers in Automobile industry in India:

According to the latest data by SIAM the total sales of two-wheeler accounts for about 81% of the

total vehicles sold in India, where passenger vehicle accounts for only 13% of total sales.

Chart 1 Market share of Automobiles in the year 2014-15

81%

3%

13%

3%

Market share of Automobile Industry in the year 2014-2015

Two wheelers

passenger vehicles

Commercial vehicles

Three wheelers

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2.4 Current Market:

Company wise sale of two wheelers Hero leads the market with a market share of 41.12%

followed by Honda and TVS.

Graph 1 Sales report of two wheeler companies

2.5 Scooter Segment:

This segment continues to grow mainly due to change in product positioning and entry of new

players. As a product category, scooters have evolved from being a laggard in technology and

characterised by two-stroke engines, higher emissions, and old styling. Scooters have now

acquired more refined engines and contemporary styling. Product positioning has also undergone

a change in the gearless scooters with low kerb weight and self-start, features that appeal to

certain consumer categories like women. HMSI currently occupies the leading position in the

scooters segment with a market share of 56% and drawing on its flagship brand Activa (besides

Aviator and Dio). It is followed by Hero (Pleasure and Maestro) which has market share of 18%

and TVS (Wego, Scooty Pep+, Streak, Zest, Jupiter ), which has a market share of more than

15.2%.

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Chart 2 Scooter market in 2013 vs 2014

2.6 Scooter sales in Vijayawada territory:

Information regarding the scooter Industry in Vijayawada territory is collected from April 2014 to

May 2015 Sale of Jupiter is less till financial year 2014 but they boosted up from April 2015

Graph 2 Market share of Activa and Jupiter in Vijayawada Territory

2014 APR

2014 MAY

2014 JUN

2104 JUL

2014 AUG

2014 SEP

2014 OCT

2014 NOV

2014 DEC

2015 JAN

2015 FEB

2015 MAR

2015 APR

2015 MAY

Market share of Jupiter 3.16% 4.35% 5.11% 4.69% 6.49% 4.20% 7.07% 5.42% 4.19% 5.50% 4.20% 5.88% 7.00% 8.00%

Market share of Activa 47.52 50% 52% 63% 64% 57% 64% 66% 72% 58% 64% 64% 37% 58%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Axi

s Ti

tle

Market share of Activa and Jupiter in Vijayawada Territory

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2.7 TVS Motor Company:

TVS Motor Company - a member of the TVS group is the largest company of the group in terms

of size and turnover. The TVS group has always been inspired by a century-long mission and

vision of its own destiny. It is not just a business but a way of doing business, which sets TVS

apart from others. TVS Motor Company is the third largest two-wheeler manufacturer in India

and one among the top ten in the world, with annual turnover of more than $1 billion in 2008-

2009. It is the flagship company of the $4 billion TVS Group. The company has four

plants located at Hosur and Mysore in south India, Himachal Pradesh, North India and one in

Indonesia. The company has a production capacity of 2.5 million units a year. TVS Motor's

strength lies in design and development of new products, with the latest launch of seven products

on the same day seen as a first in automotive history. TVS delivers total customer satisfaction by

anticipating the customer's need and presenting quality vehicles at the right time and at the right

price. The customer and his ever changing need is its continuous source of inspiration.

TVS has been at the forefront in bringing a revolution in the way personal commutation was

happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the

middle class in India in the 1980s to launching seven new bikes in a single day (first time in the

history of the automotive industry in the world), TVS has often taken the unbeaten path to

innovation.

2.8 MILESTONES:

1980 TVS Motor launched India first two-seater 50cc moped -TVS 50

1984 The two-wheeler major became the first Indian company to introduce

100cc Indo-Japanese motorcycles

1994 - It launched India first indigenous scooterette -- TVS Scooty.

1996-97 - Introduced India first catalytic converter-enabled motorcycle, the

110cc Shogun. Launched India first 5- speed motorcycle, the Shaolin.

2000 - Launched TVS Fiero, India first 150cc, 4-stroke motorcycle.

2001 Launched TVS Victor, 4-stroke 110cc motorcycle, India first fully

indigenously designed and manufactured motorcycle

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2002 TVS becomes the world first two-wheeler company to win the world

most prestigious recognition in Total Quality Management the Deming

Award 2002. TVS wins the Technology Award from Ministry of

Science, Government of India for successful commercialization of

indigenous technology.

2004 Launched TVS Centra, a world class 4-stroke 100cc motorcycle with

revolutionary VT- I engine for best in class mileage. Launched TVS

Star, a 100cc motorcycle ideal for the rough terrain. TVS wins TPM

Excellence award from Japan Institute of Plant Maintenance (JIPM).

TVS wins Outstanding design Excellence Award for TVS Scooty Pep.

2005-06 TVS launches its Indonesian plant. Launched TVS Apache, which set

the youth imagination on fire. Apache went on to be the Bike of the

year for 2006, winning six prestigious awards.

2007 TVS Motor Company rolls out seven new products. TVS launches its

Himachal Pradesh Plant at Nalagarh.

2008 TVS Motor company bags two coveted IT awards in September

2008 SAP ACE 2008 Award and 2008 Symantec South Asia Visionary

Award

2008 Apache RTR FI was launched

2008 TVS Motor Company launched the revolutionary 125cc Flame

2009 TVS scooty Streak was launched.

2010 Launch of India’s first Automatic Clutch Motorcycle- TVS JIVE.

Launch of India’s first Automatic scooter- TVS WEGO

2012 125 cc premium bike Phoenix was launched.

2013 TVS Jupiter was launched.

Table 1 Milestones of TVS

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4 P’s of TVS Motor Company:

Product:

Chart 3 TVS product classification

TVS is known for its superior quality and the products having advanced features like Anti

braking system (ABS), continuous variable timing ignition (CVTI) engine and body-balance

technology.

The table below shows the Various TVS products:-

MOTORCYCLE SCOOTER MOPED

Apache RTR 180 ABS Scooty Pep+ XL Super

Apache RTR 180 Scooty Pep (Fashion Series) XL Heavy Duty

Apache RTR160 Scooty Pep

Phoenix 125 drum Scooty Streak

Phoenix 125 disc Wego

Jive Wego fresh

Star City Scooty Zest

Sport Jupiter

Max 4R

Flame

Table 2 Products of TVS

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Price:

1) TVS is known for its competitive pricing strategy.

2) Customers can make the payment by cash, through debit/credit card or by financing.

Table 3 Price of TVS & its competitor products

TVS Ex showroom

PRICE

HERO Ex

showroom

PRICE

HONDA Ex

showroom

PRICE

Max-4R 48,770 HF Deluxe 46,318 CD110 46561

Sport 45,194 HF Deluxe

ECO

48,336 Dream neo 50403

Star city 48,201 Splendor+ 47,300 Dream Yuga 53733

Apache 160 73019 Splendor

PRO

50,800 CB Twister 56045

Apache 160

(Rear Disc)

75064 Splendor

PRO Classic

51,300 CB Shine 64256

Apache 180 78054 Splendor

iSmart

52,008 CBF

Stunner

61633

Apache 180

(ABS)

86492 Passion

PRO TR

55,100 CB Trigger 81492

Phoenix (drum

brakes)

55171 Passion

PRO

54,300 CB Unicorn

160

80917

Phoenix (disc) 57815 Glamour 59,125 CBR 150R 127468

Scooty zest 47130 Hunk 73,992 CBR250R 195728

Scooty pep 43579 Impulse 72,771 Activa 125 64541

Scooty streak 45252 Xtreme 73,800 Activa 3G 52112

Wego 52157 ZMR 107,100 Activa i 48568

Jupiter 51278 Karizma 85,000 Dio 50573

XL- Super 31,690 Maestro 50,613 Aviator 58543

XL-heavy duty 33,400 Pleasure 48,900

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Place:

For a company, dealers play an important role in serving customers. It also helps the

company to grow and sustain its position in competitive markets. TVS has a robust two

tier distribution network with 784 exclusive dealers along with more than 2000 sales and

service points. This helped the company to maintain TVS’s name and its promise of

reliability to every part of country. The power of such highly efficient and motivated

network goes a long way to create goodwill for TVS Motor Company.TVS has also got

three manufacturing units in the country i.e. Hosur in Tamil Nadu, Mysore in Karnataka

and Solan in Himachal Pradesh and one manufacturing unit outside the country

The channel of distribution is the ‘authorized main dealer and authorized dealer’ network.

A direct dealer is a dealer who is authorized to purchase the product directly from the

company and sell. An authorized dealer is a dealer who is authorized to purchase the

product from any dealer and sell.

Promotion:

The following promotion variables are considered by TVS for its 2Wheeler segment:

Brand ambassador: M.S. Dhoni, Captain of Indian Cricket Team, Virat Kohli for TVS

Sport, Tamil matinee idol Surya for TVS Star.

Tollywood super star Mahesh babu is chosen as the brand ambassador for premium

product “Phoenix 125”.

Anushka Sharma, Bollywood star for Scooty pep+

Brand line : ‘Trust, Value and Service’

Advertising : TV, Newspaper, Magazines, Social Media, Sports like Indian Premier

League (IPL) and TVS Racing

Sales Promotion: Various schemes are available in the market where customer can avail

best of discount in procurement cost and in financing the vehicle.

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CHAPTER -3 PROBLEM DEFINITION

Honda Motors has 56% market share in scooters, Hero has 18% market share and TVS is in third

position with 15.2% market share for the FY2015. TVS Jupiter is better in features, specifications

and cheaper in cost compared to Honda Activa. My study is focused on why people are

considering Activa over Jupiter and recommendations I give will help TVS to identify ways to

increase its market share.

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CHAPTER-4 APPROACH TO THE PROBLEM

Mystery Shopping: I was asked to do Mystery shopping where I visited 14 showrooms in

Vijayawada and Guntur as a customer, measured the following attributes and made a comparative

assessment of all outlets visited.

Sales executives Ambience Sales process

Attire Space management Greeting, reception

Product knowledge Product display Understanding customer needs

Product knowledge of

competitor products

Customer convenience Product presentation

Enthusiasm Test rides

Sales closure

Complaint handling if any

Table 4 Attributes considered for Mystery Shopping

Survey: I was given a questionnaire and asked to conduct TVS Jupiter non consideration survey

and analyze survey results. Here customers of Activa were targeted as it has major market share in

scooter segment. As the survey questionnaire is not scale based I did analysis in Microsoft excel.

Sales executive: I was given an opportunity to act as a real time sales executive of TVS in the two

Carnivals they conducted each for 3 days. For the first day I was asked to observe the sales

process at the carnival and understand how the sales executives explain the product to the

customer, what features they were highlighting. Then for the remaining 2 days of first carnival

and 3 days of second carnival I interacted directly with the customers.

Study on resale value: During the Carnival period most of the customers pointed out low resale

value. TVS products carries negative image of low resale value. I did some basic research on

factors affecting resale value, had some face to face interviews with the auto consultants.

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CHAPTER-5 RESEARCH METHODOLOGY

5.1 Research design:

The research design is exploratory in nature. A questionnaire was designed to study Activa

customers, A total of 233 responses were collected. The study focused more on new Activa

customers i.e., customers who bought Activa after the launch of Jupiter in 2013. 131 responses

were collected from Vijayawada city and 102 responses from Guntur city.

5.2 Data collection from secondary source:

Secondary data was collected from sources including the company website. The product brochure

was also used to study the technical specifications and features of the product. Society of Indian

Automobile Manufacturers (SIAM) website was used to study the industry trend and market

share.

5.3 Data collection from primary source:

The primary data consists of the responses to the questionnaire by the Activa customers in

Vijayawada and Guntur. 131 responses from Vijayawada city and 102 responses from Guntur

city.

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CHAPTER-6 DATA ANALYSIS

The data gathered was analyzed according to the requirements of the project i.e. to understand

why Activa customers preferred this vehicle over TVS Jupiter. Each question of the questionnaire

was analyzed in depth to develop an understanding on why people are buying Activa and not

considering Jupiter.

The data analysis has been done by using Excel. All the data is entered in to Excel sheets and

using pivot tables the data is analyzed and compared.

6.1 Analysis of Mystery shopping:

Mystery shopping is an activity done to observe the competitors’ pre-sales process and compare it

with TVS dealers’ pre-sales process. This observation can be helpful in improving the dealers’

pre-sales process. There are a total of thirteen parameters, which are divided into three segments

for convenience.

Sales executives Ambience Sales process

Attire Space management Greeting, reception

Product knowledge Product display Understanding customer needs

Product knowledge of

competitor products

Customer convenience Product presentation

Enthusiasm Test rides

Sales closure

Complaint handling if any

Table 5 Attributes considered for Mystery Shopping

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Graph 3 Average score of all showrooms in Vijayawada

Graph 4 Comparison between Vijayawada Industry and TVS showroom in Vijayawada

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Graph 5 Average rating of all showrooms in Guntur

Graph 6 Comparison between Guntur Industry and TVS showroom in Guntur

7.6

5.8

1.4

4.4

6.2 6

4.8

5.8

2

5.8

2

6.2

0 0

1

2

3

4

5

6

7

8

Guntur Industry

7.6

5.8

1.4

4.4

6.2 6

4.8

5.8

2

5.8

2

6.2

0

8

7

3

4

8

7

6 6

2

7

0

6

0 0

1

2

3

4

5

6

7

8

9

Guntur Industry PioneerTVS

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6.2 Jupiter non consideration survey:

A total of 14 questions are framed and each question except the Name is analyzed using Microsoft

Excel. Each of the questions were compared with other question.

6.2.1 Analysis for responses in Vijayawada city:

Graph 7 Comparison between Age and reason for buying Activa

Graph 8 Comparison between Age and difference between Activa and Jupiter

Honda Brand

Features Mileage Comfort Friends/Fa

mily Suggestion

Based on market

demand

Overall 27.48% 9.16% 2.29% 39.69% 12.98% 8.40%

18-25 years 20.00% 16.00% 4.00% 32.00% 20.00% 8.00%

26-35 years 31.71% 9.76% 0.00% 34.15% 12.20% 12.20%

36-45 years 30.56% 8.33% 2.78% 38.89% 8.33% 11.11%

above 45 years 24.14% 3.45% 3.45% 55.17% 13.79% 0.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Axi

s Ti

tle

Main reason for buying Activa compared to Age

Overall 18-25 years

26-35 years

36-45 years

above 45 years

Brand Value 46.73% 40.00% 47.06% 53.57% 45.00%

Features of Activa > Jupiter 17.76% 32.00% 11.76% 7.14% 25.00%

Activa is well known than Jupiter 35.51% 28.00% 41.18% 39.29% 30.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Axi

s Ti

tle

Main difference between Activa & Jupiter compared to Age

[Type text]

Graph 9 Comparison between Previous vehicle used and occupation

Graph 10 Comparison between mode of payment and occupation

Overall Student Job Business

Scooter 25.95% 0.00% 24.19% 38.00%

Bike 38.93% 42.11% 33.87% 44.00%

First time user 29.01% 52.63% 35.48% 12.00%

TVS moped 6.11% 5.26% 6.45% 6.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Axi

s Ti

tle

Previous Vehicle compared to Occupation


Cash 61.83% 68.42% 61.29% 60.00%

Finance 38.17% 31.58% 38.71% 40.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Axi

s Ti

tle

Mode of payment compared to Occupation

[Type text]

Graph 11 Comparison between Resale value used and occupation

Graph 12 Comparison between previous vehicle used and main reason for buying Activa


Yes 45.04% 31.58% 51.61% 42.00%

No 54.96% 68.42% 48.39% 58.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Axi

s Ti

tle

Considering Resale value compared to

Occupation

Honda Brand

Features Mileage Comfort Friends/Fa

mily Suggestion

Based on market

demand

Overall 27.48% 9.16% 2.29% 39.69% 12.98% 8.40%

Scooter 29.41% 2.94% 2.94% 55.88% 8.82% 0.00%

Bike 41.18% 7.84% 1.96% 29.41% 5.88% 13.73%

First time user 13.16% 13.16% 2.63% 36.84% 23.68% 10.53%

TVS moped 0.00% 25.00% 0.00% 50.00% 25.00% 0.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Axi

s Ti

tle

Main reason for buying Activa compared to Previous vehicle

[Type text]

Graph 13 Comparison between mode of payment and annual income

Graph 14 Comparison between considering resale value while purchasing and annual income

Overall less than 100000

100000-250000 250000-400000 above 400000

Cash 61.83% 58.62% 52.46% 74.19% 90.00%

Finance 38.17% 41.38% 47.54% 25.81% 10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Axi

s Ti

tle

Mode of payment compared to Annual Income

Overall less than 100000

100000-250000 250000-400000 above 400000

Yes 45.04% 41.38% 55.74% 38.71% 10.00%

No 54.96% 58.62% 44.26% 61.29% 90.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%

100.00%

Axi

s Ti

tle

Considering resale value when purchasing compared to Annual Income

[Type text]

Graph 15 Comparison between showroom visitors and showroom Ambience

Graph 16 Comparison between showroom visitors and showroom knowledge

Poor Average Good Excellent

Overall 17.14% 37.14% 37.14% 8.57%

Yes 17.14% 37.14% 37.14% 8.57%

No 0.00% 0.00% 0.00% 0.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Axi

s Ti

tle

Showroom Ambiance compared with Showroom

visitors


Overall 5.71% 31.43% 60.00% 2.86%

Yes 5.71% 31.43% 60.00% 2.86%

No 0.00% 0.00% 0.00% 0.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Axi

s Ti

tle

Sales Executive knowledge compared to showroom visitors

[Type text]

6.2.2 Analysis of responses from Guntur city:

Graph 17 Comparison between previous vehicle used and occupation

Graph 18 Comparison between annual income and occupation


Scooter 19.61% 7.14% 15.52% 33.33%

Bike 52.94% 50.00% 56.90% 46.67%

First time user 21.57% 42.86% 22.41% 10.00%

TVS moped 5.88% 0.00% 5.17% 10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Axi

s Ti

tle

Previous Vehicle compared to Occupation


less than 100000 15.69% 14.29% 10.34% 26.67%

100000-250000 50.00% 28.57% 51.72% 56.67%

250000-400000 30.39% 35.71% 36.21% 16.67%

above 400000 3.92% 21.43% 1.72% 0.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Axi

s Ti

tle

Annual Income compared to Occupation

[Type text]

Graph 19 Comparison between Annual income and previous vehicle used

Graph 20 Comparison between Reason for buying Activa and previous vehicle used

Overall Scooter Bike First time user TVS moped

less than 100000 15.69% 25.00% 14.81% 0.00% 50.00%

100000-250000 50.00% 40.00% 46.30% 68.18% 50.00%

250000-400000 30.39% 35.00% 33.33% 27.27% 0.00%

above 400000 3.92% 0.00% 5.56% 4.55% 0.00%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

Axi

s Ti

tle

Annual Income compared to Previous Vehicle

used

Honda Brand

Features Mileage Comfort Friends/Fam

ily Suggestion

Based on market demand

Overall 19.61% 8.82% 5.88% 41.18% 14.71% 9.80%

Scooter 5.00% 15.00% 5.00% 60.00% 10.00% 5.00%

Bike 31.48% 5.56% 5.56% 38.89% 3.70% 14.81%

First time user 9.09% 9.09% 0.00% 31.82% 50.00% 0.00%

TVS moped 0.00% 16.67% 33.33% 33.33% 0.00% 16.67%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Axi

s Ti

tle

Main reason for buying Activa compared to Previous vehicle

[Type text]

Graph 21 Comparison between showroom visitors and showroom ambience

Graph 22 Comparison between showroom visitors and sales executive knowledge


Overall 10.00% 46.67% 43.33% 0.00%

Yes 10.00% 46.67% 43.33% 0.00%

No 0.00% 0.00% 0.00% 0.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

Axi

s Ti

tle

Showroom Ambiance compared with Showroom

visitors


Overall 6.67% 10.00% 76.67% 6.67%

Yes 6.67% 10.00% 76.67% 6.67%

No 0.00% 0.00% 0.00% 0.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Axi

s Ti

tle

Sales Executive knowledge compared to showroom visitors

[Type text]

6.3 Study on resale market for scooters with focus on TVS vehicles:

Resale value:

It is the negotiated price of a vehicle that has already been purchased and used significantly.

Obviously the perception of remaining useful economic life by the buyer would be a critical

determinant of this variable.

I took responses from 20 Auto consultants some of whom have been active in the market for the

past 20 years.

Factors influencing for buying a vehicle:

1. Model (Year of manufacturing)

2. Engine Condition of vehicle

3. Outlook of vehicle : External condition of the vehicle like body paint, damage though

accidents, scratches.

4. Tires condition

Fast moving vehicles in secondary market:

1. Honda

1. Activa

2. Unicorn

3. Shine

2. Hero

1. Passion pro

2. Glamour

3. Bajaj

1. Pulsar

4. Yamaha

1. FZ

2. R15

5. TVS

1. XL-Super, Heavy duty

6. Suzuki

1. Access

Reason for low resale value for TVS:

1. Brand value plays a major role. Honda and Hero are considered as the only brands in the

market.

2. Demand in the market.

3. Spares availability is less in the secondary market.

4. Mechanical work for TVS is difficult compared to Hero and Honda. Engines of TVS are

vertical where it is difficult to repair or replace parts to engine

[Type text]

CHAPTER-7 RESULTS AND CONCLUSION

7.1 Conclusion:

For TVS, it should have a clear understanding of the competitive advantages and disadvantages of

its products with the competitors. It was also proved that TVS has to improve its products

visibility by employing better marketing communication strategies.

It was also observed that TVS has to improve awareness of Jupiter when compared with the

market leader Honda Activa.

I have done this project to identify the loopholes in the strategies and processes of the company

and to enhance the sales and sustain it is a long term aspect.

7.2 Result:

A total of 233 responses were collected. Focused more on new Activa customers i.e, customers

who bought Activa after the launch of Jupiter in 2013. 131 responses were collected from

Vijayawada city and 102 responses were recorded in Guntur city.

Some of the results related to the survey are shown below graphically

Results in Vijayawada City:

Gender:

Graph 23 Gender statistics of Vijayawada survey

[Type text]

Age:

Graph 24 Age statistics of Vijayawada survey

Occupation:

Graph 25 Occupation statistics of Vijayawada survey

[Type text]

Previous Vehicle Used:

Graph 26 Previous vehicle used statistics of Vijayawada survey

Annual Income:

Graph 27 Annual Income statistics of Vijayawada survey

[Type text]

Which of these vehicles do you see/hear more though advertisements?

Graph 28 Response for most seen vehicle in Vijayawada Survey

What is main reason for buying Activa?

Graph 29 Response for main reason for buying Activa in Vijayawada Survey

[Type text]

Did you visit TVS showroom and consider Jupiter before buying Activa?

Graph 30 Response for visiting TVS showroom and considered Jupiter before buying Activa in

Vijayawada Survey

In your opinion What is main difference between Activa and Jupiter?

Graph 31 Response for main difference between Activa and Jupiter in Vijayawada Survey

[Type text]

Do you recommend Activa to your friends/family members?

Graph 32 Response for recommending Activa on a scale of 10 in Vijayawada survey

[Type text]

Results in Guntur City:

Gender:

Graph 33 Gender statistics of Guntur survey

Age:

Graph 34 Age statistics of Guntur survey

[Type text]

Occupation:

Graph 35 Occupation statistics of Guntur survey

Previous vehicle used:

Graph 36 Previous vehicle used statistics of Guntur survey

Annual Income:

Graph 37 Annual income statistics of Guntur survey

[Type text]

Which of these vehicles do you see/hear more though advertisements?

Graph 38 Response for most seen vehicle in Guntur Survey

What is main reason for buying Activa?

Graph 39 Response for main reason for buying Activa in Guntur Survey

[Type text]

Did you visit TVS showroom and consider Jupiter before buying Activa?

Graph 40 Response for visiting TVS showroom and considered Jupiter before buying Activa in

Guntur Survey

In your opinion what is main difference between Activa and Jupiter?

Graph 41 Response for main difference between Activa and Jupiter in Guntur Survey

[Type text]

Do you recommend Activa to your friends/family members?

Graph 42 Response for recommending Activa on a scale of 10 in Guntur survey

[Type text]

CHAPTER -8 LIMITATIONS AND CAVEATS

This project hoped to provide as realistic results as possible. The sample was chosen to be as

representative of the population as could be.

The following are the limitations of the project:

The sample chosen closely represents the target population but the result may lack

accuracy as the sample size is not very large.

There is a chance of respondents being biased in terms of product characteristics.

[Type text]

CHAPTER -9 RECOMMENDATIONS

Impart knowledge to sales executives on competitor products.

Sales executives should be appropriately attired.

There is no more belief that scooter segment is for women, it is better to have both men

and women sales executives for scooter segment.

Sales executives should offer every prospective customer for a test ride.

Understanding customer needs is very important which build up brand.

Sales executives should do regular follow up with customers and get feedback as also

provide help where needed either through expediting After Sales Service or providing

advice where asked for.

TVS Motors should be able to attract customers by giving discount if they buy on the same

day or the following day.

Proper recruiting of sales executives will have a great positive impact on sale of TVS

products.

Giving more and flexible finance options can attract Income groups below 250000 per

annum.

Run Customer Reward Programs like giving offers to existing TVS customers.

Encourage dealers by giving incentives if they achieve targets.

Proper enquiry quotation should be maintained.

Collect contact information of customers who visited TVS showroom and use it to follow

up.

TVS Jupiter should be promoted as more comfort scooter because around 60% answered

comfort as main reason for buying Activa.

Adequate availability of spare parts should be ensured at reasonable prices.

Brochure stands at every showroom should be mandatory.

Quality after sale service makes customer loyal to the company increase the publicity

though word of mouth.

[Type text]

CHAPTER-10 EXHIBITS

10.1 Questionnaire:

Name (optional):_______________________ Gender: Male ( ) Female ( )

Age: 18-25years ( ) 26-35years ( ) 36-45years ( ) above 45 ( )

Qualification: Student ( ) Job ( ) Business ( ) Previous owned Product: __________________

Annual income (of father if student)

Less than 100000 ( ) 100000 – 250000 ( ) 250000-400000( ) Above 400000 ( )

1. Which of these vehicles do you see/hear more through advertisements?

Honda Activa( ) TVS Jupiter ( ) Suzuki Access ( ) Hero Maestro ( )

2. What is the main reason for buying Activa?

Honda Brand ( ) Features ( ) Mileage ( ) Comfort ( ) Friends/family suggestion ( )

Based on Market Demand ( )

3. Did you visit TVS showroom and considered Jupiter before buying Activa?

Yes ( ) No ( )

4. If yes how is TVS showroom

a) Ambiance Poor ( ) Average ( ) Good ( ) Excellent ( )

b) Sales executives’ knowledge Poor ( ) Average ( ) Good ( ) Excellent ( )

5. In your opinion what is main difference between Activa and Jupiter?

Brand Value ( ) Features of Activa > Jupiter ( ) Activa is well known than Jupiter ( )

6. Which mode of payment did you made? Cash ( ) Finance ( )

7. Do you consider resale value while purchasing? Yes ( ) No ( )

8. Do you recommend Activa to your family/Friends?

0 1 2 3 4 5 6 7 8 9 10

Never For sure

[Type text]

10.2 Pictures of summer 1st carnival:

[Type text]

10.2 Pictures of summer 2nd

carnival:

[Type text]

10.3 Marketing activity at Vijayawada:

[Type text]

10.3 Marketing activity at Guntur:

[Type text]

CHAPTER-11 REFERENCES

http://www.siamindia.com/

http://www.tvsmotor.in/

www.automobileindia.com

http://auto.indiamart.com

Indian two-wheeler industry: back on growth path – ICRA

Indian Two-Wheeler Industry, ICRA Sectoral Analysis

http://www.siamindia.com/

http://www.tvsmotor.in/

http://www.automobileindia.com/

http://auto.indiamart.com/

[Type text]

CHAPTER-12 GLOSSARY

Following is the list of abbreviations used in the report in an alphabetical order:

1) ABS - Anti breaking system

2) i.e. – That is

3) SIAM – Society of Indian Automobile Manufacturers

Summer internship Report(TVS) by Bhargava Sai Kumar

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