Vous êtes sur la page 1sur 46

A

PROJECT REPORT ON
SALES AND PROMOTION
FOR
TVS MOTOR COMPANY PVT LTD
BY
ARJUN R
UNDER THE GUIDANCE OF
PROF. HAMJE
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE
AWARD OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION
THROUGH

ASMS INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH


CHINCHWAD PUNE - 411019

DECLARATION

I hereby declare that this project report titled as A study of sales and promotions of TVS motors has been
prepared as a part of my academics for the partial fulfillment of degree of master of business
administration, by savtribai phule university of pune, under guidance of Prof. hemje of ASM Institute of
business management and research.
To the best of my knowledge and belief the matter presented in this report has not been submitted earlier for
the award of any other degree. This report is prepared by me on my own efforts.

ARJUN R
MBA 3RD SEM
DATE :
PLACE :

Chapter No. 1
INRODUCTION& EXECUTIVE SUMMARY

Introduction of marketing:
Marketing is both the Art as well as science. The management process through which goods and services
move from concept to the customer. It includes the coordination of four elements called the 4 P`s of
marketing:
i.

Identification, Selection and development of a product,

ii.

Determination of its price,

iii.

Selection of a distribution channel to reach the customer`s place, and

iv.

Development and implementation of a promotional strategy.

Marketing is based on thinking about the business in terms of customer needs and satisfaction. Marketing
defers from selling because (in the words of Harvard business Schools retired professor of marketing
Theodore C. Leavitt) Selling concerns itself with the tricks and techniques of getting people to exchange
their cashfor your products. It is not concerned with the value that the exchange is all about. And it does not,
as marketing invariable does, view the entire business process as consisting of tightly integrated effort to
discover, create, arouse and satisfy customer needs. In other words, marketing has less to do with getting
customers to pay for your product as it does developing a demand for that product and fulfilling the
customers needs. Ultimately, it makes more sense to thinking of ways to benefit from creating customer
value in the most effective way, subject to ethical and other constrains that one may have. Marketing usually
involves an exchange between buyers and sellers or between other parties. Marketing has an impact on the
firm, its suppliers, its customers, and other effected by the firms choices. Marketing management is the
broad scope of the study of marketing focusing on the practical application of the techniques and marketing
activities of a certain company or business. This business discipline encompasses marketing planning and
strategy, orientations, and processes needed in attaining company goals by providing value to clients. Since it
has a wide coverage involving all factors required to satisfy customers, marketing management must be allpervasive and part of every employees scope of work, from the subordinates to those in higher management.

Definition of Marketing:
Marketing is the beginning and end of all the business activities Philip Kotler
Marketing is the delivery of standard of living to society Paul Masur
5

Deciding on the Promotion mix:


Companies face the task of distribution the total promotion budget over the five promotional tools:

Advertising

Sales Promotion

Public Relations and Publicity

Sales Force

Direct Marketing.

Whatever method a company adopts for promotion its product it must be from above mentioned method.
What is Sales?
Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed
and the methods of distribution decided, the manufactures has to take effective steps in meeting the
consumers in the markets. In the present consumer oriented markets it is the duty of manufactures to know
what is required by the consumer. It is also their duty to make the customers know where, when how and at
what prices. The products would be available.
Meaning Of Promotion:
The term promotion is the term and include mainly three type of sales activity:
1. Mass impersonal selling methods (Advertising).
2. Face to face personal selling (salesman ship).
3. Activities other than personal selling and advertising such as point of purchase display (P.O.P) show
and exhibition, demonstration and other non-securing selling efforts.
This form of activity is called Sales Promotion.

EXECUTIVE SUMMARY

A Summer Internship Project is vital part of every MBA program. It helps us to have a real insight into
corporate world. An internship also enables us to gear up for the career ahead of us. All the theory that we
have learnt in our curriculum is put into practice during internship. I have done my project on SALES AND
PROMOTION with reference to TVS COMPANY PVT LTD.

Promotion is the final element in the marketing mix. After the nature of product is decided, its price fixed and
the methods of distribution decided, the manufactures has to take effective steps in meeting the consumers in
markets, In the present consumer oriented markets it is the duty of manufacturers to know what is required by
the consumer, It is also their duty to make the customer know where, when how and at what prices. The
products would be available. The study would bring out how the product is going in a highly competitive
market with deferent promotional activities. The topic includes that to study the sales & promotion activities
used by TVS Company PVT LTD for increasing the sales of Motorcycles. The reason for selecting this topic
is to get learning experience of automobile sector.

It contains all important and prominent function, sales & promotion including distribution channel in
particular. The study on motorcycle can give a valuable learning about how to analyze a product success or
failure and according set action plans for its betterment. Also it would be a great opportunity for interacting
with different kind of people and get to know how actually the system runs. It would also a big idea for
taking a call towards satisfying customer needs, which is ultimately the prime objective of any company and
its employees.
7

This project was prepared during work of two months as Summer Internship Training Program in TVS
Company PVT LTD on topic STUDY OF SALES AND PROMOTION it is the survey for the marketing
strategies and promotional activities of Motorcycles.

REASONS FOR SELECTING THE TOPIC

To gain practical knowledge along with marketing theory.


To understand the challenges of the organization.
To get the market information.
To became aware of our strengths and weakness as required for potential manager.
To understand market situation.

Chapter No. 2
INDUSTRY PROFILE

2.1 INDUSTRY PROFILE


Automotive industry:
The automotive industry is a term that covers a wide range of companies and organizations involved in the
design, development, manufacture, marketing, and selling of motor vehicles, towed vehicles, motorcycles
and mopeds. It is one of the world's most important economic sectors by revenue.
The term automotive industry usually does not include industries dedicated to the maintenance of
automobiles following delivery to the end-user, such as repair shops and motor fuelfilling stations.
History:

The automotive industry began in the 1890s with hundreds of manufacturers that pioneered the horseless
carriage. For many decades, the United States led the world in total automobile production. In 1929 before
the Great Depression, the world had 32,028,500 automobiles in use, and the U.S. automobile industry
produced over 90% of them. At that time the U.S. had one car per 4.87 persons. After WWII the U.S.
produced about 75 percent of world's auto production. In 1980 the U.S. was overtaken by Japan and became
world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production and held this rank until
10

2009, when China took the top spot with 13.8 million units. By producing 18.4 million units in 2011, China
produced more than twice the number of automobiles made by the U.S. in second place with 8.7 million
units, while Japan was in third place with 8.4 million units.

World motor vehicle production:


For many decades, the United States led the world in total automobile production. In 1929 before the Great
Depression, the world had 32,028,500 automobiles in use, and the US automobile industry produced over
90% of them. At that time the U.S. had one car per 4.87 persons. After WWII the U.S. issued 3/4 of world's
auto production. In 1980 the U.S. was overtaken by Japan and became world's leader again in 1994. In 2006,
Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top spot
with 13.8 million units. By producing 18.4 million units in 2011, China produced more than twice the
number of automobiles made by the U.S. in second place with 8.7 million units, while Japan was in
thirdplace with 8.4 million units

Indian automobile sector:


The Indian automobile sector is one of its most vibrant industries. The industry accounts for 22 per cent of
the country's manufacturing gross domestic product (GDP). It comprises passenger cars, two-wheelers, threewheelers and commercial vehicles and is currently the seventh-largest in the world with an average annual
production of 17.5 million vehicles, of which 2.3 million are exported.

In addition, with the government's backing and a special focus on exports of small cars, multi-utility vehicles
(MUVs), two and three-wheelers and auto components, the automotive sector's contribution to the GDP is
expected to double, reaching a turnover of US$ 145 billion in 2016, according to the Automotive Mission
Plan (AMP) 2006-2016.

11

Market size

The automobile industry produced a total of 1,861,849 vehicles including passenger vehicles, commercial
vehicles, three-wheelers and two-wheelers in April 2014 as against 1,687,243 in April 2013, registering a
growth of 10.35 percent over the corresponding month of 2013. The growth is mostly attributed to the rise in
two-wheeler production.

Two-wheeler sales registered growth of 11.67 percent in April 2014 over April 2013. Within this segment,
scooters, motorcycles and mopeds grew by 26.08 percent, 8.06 percent and 0.23 percent respectively.

In April 2014, passenger car sales stood at 1,786,899 units while utility vehicles sales stood at 525,942 units,
as per data from Society of Indian Mobile Manufacturers (SIAM). Export of utility vehicles showed an
improvement of 298 percent with 41,550 units.

12

Top Players in automotive industries in India: 1. HONDA: -

2. HERO: -

13

3.BAJAJ: -

4.TVS: 14

5.SUZUKI: -

6.YAMAHA
15

2.2COMPANY PROFILE

Type

Public

Traded as

BSE: 532343,NSE: TVSMOTO


R

Industry

Automotive

Predecessors

Sundaram - Clayton
Limited Moped Division
India Motor Cycles
Limited
16

TVS - Suzuki Limited


Founded

1978

Founders

Sundaram

Headquarters Chennai, India


Number of
locations

3 two wheeler and 1 three


wheeler plants

Key people

VenuSrinivasan
(Chairman & MD)

Products

Motorcycles, scooters, threewheeler vehicles and spare


parts

Revenue

77.35 billion (US$1.2 billion)


(2014)

Profit

2.54 billion (US$38 million)


(2014)

Total assets

10.48 billion(US$160 million)


(2014)

Parent

Sundaram - Clayton Limited

Website

www.tvsmotor.in

COMPANY PROFILE: TVS Motor Company, the flagship company of the TVS Group, is Indias third largest
Two-wheeler manufacturer and one among the top ten in the world. The TVS Group was established back in
1911, when the founder of the company,Shri T V SundaramIyengar created an enduring business, led by a
family of like-minded workers and managers united by a set of high, yet shared principles. Driven by
thisinspiration, the TVS group has today emerged as India's leading player in the automobileand automotive
components industries. The group has 30 companies employing a workforce of around 40,000 people. TVS
Motor Company is the largest among the groupcompanies in terms of size and turnover.
Today, TVS Motor Company has,
17

4 manufacturing plants (Hosur in Tamil nadu, Mysore in Karnataka, Nalagarh in Himachal Pradesh
India and Kerrawang - Indonesia)

16% market share in the two-wheeler industry in India

Product offerings in all segments of the two-wheeler industry in India

Product offerings for the three-wheeler industry in India

More than 15 million customers

Products exported to more than 50 countries worldwide

Leading from the front, the Chairman of TVS Motor Company, Mr. VenuSrinivasan, has won many laurels
for the company. The most recent awards conferred on him, while being head of the Confederation of Indian
Industries include the Honoris Causa Doctor of Science (D. Sc.) for his outstanding contributions in the field
of Quality Movement and Manufacturing Excellence, the distinguished civilian honor Order of Diplomatic
Service Merit (Heung-In Medal) conferred by the President of the Republic of Korea, His Excellency Lee
Myung-bak in recognition of his valuable contribution in promoting Korea-India bilateral relations and the
prestigious honor by the President of Indian with the Padma Shri award for his valuable and outstanding
contributions in the field of Trade and Industry. The JRD Tata Corporate, The Star of Asia award by Business
Week, The Jamshedji TATA Lifetime Quality Achievement Award, Emerging Corporate Giant - Times &
Harvard Business School Association are some of the other high-profile awards bestowed on him.

The current product portfolio of the company comprise of motorcycles including TVS Star in the economy
segment, TVS Apache RTR inperformance segment. TVS Scooty Pep+, TVS Scooty Streak make up the
scooterette segment while XL Super and Heavy Dutyform the mopeds segment. The company recently
launched Indias first clutch lessmotorcycle, TVS Jive along with an automatic metal bodied scooter TVS
Wegoand TVS Jupiter thereforeoffering consumers a comprehensive product portfolio.

18

TVS Motor Company is renowned for its human resource management. Employees get exposure to various
skilldevelopmental aspects like Cross Functional Teams (CFT), Supervisory Improvement Teams (SIT), and
Quality Control Circles (QCC) among various others. Specific care is taken toensure the creation and
maintenance of an incomparable working environment withemployee welfare at the focal point.
As part of its global operations, TVS Motor Company has international presence in more than 50 countries
in Asian, Africanand Latin American Continents and will enter more international markets in due course.
InIndia, the company functions through a strong network of sales, service, authorized servicecenters and
other certified service points.

19

Chapter No.4
RESEARCH METHODOLOGY& DATA ANALYSIS

Research is an art of science investigation through search for few facts in any branch of knowledge. It is a
movement from known to unknown
Research always with the question or problem
It is purpose is to find answer to question through the application of scientific method
It is a systematic and intensive study directed towards a work complete knowledge of the subject
studied

20

As the marketing does not address itself the basic or fundamental question it doesn`t qualify as basis research
on the contrary, it tackles problems, which seems to have immediate commercial potential. In view of major
consideration, marketing research should be regarded as applied research, we may also say that marketing
research is both types problem solving and problem and oriented.
Marketing research is a systematic and objective study of the problems pertains to the marketing of goods
and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applied
to all the phase and aspects.
Methods of Data collection: 1) Data to be collected:
Data includes facts and figures, which are required to be collected to achieve the objectives of the
projecting order to determine the present position and satisfaction of customer of TVS Automobiles.

A. PRIMARY DATA:
The data is being collected for the first time or to particularly fulfil the objectives or the project is
known as primary data.
The primary data were collected through response of consumer was conducted through the
questionnaires prepared for them & by face to face interaction.
B. SECONDARY DATA:
This dataare the types of data which are already assembled and needs not to collected from outside.
This type of data were:
I.
II.
III.

Company profile
Product profile
Competitors profile

The aforesaid data were collected through internet and company`s financial report.
2) Data collection method:
For given project the primary data, which needed to collect for the first time, where much significant.
This type of information gathered through survey techniques, which is the most popular and effective
21

technique for collection. The survey was completed with use of questionnaires & by face to face
interaction.
3) Sampling:
Sample is the small group taken under consideration from the total group. This small group represent the
total group in the project the market research, which was ask to be studied in market area but as it was
possible to approach all the respondents customer of the city, hence a sample was selected which
represent the whole city. The area selected for the sample is present further in the appendix. Sample size
of customer list was taken from TVS Automobile customer data basic.
4) Data evaluation:
The data so collected were not simply accepted because it contained unnecessary information and over or
under emphasized facts. Therefore only reverent data were included in the report which helps in
achieving the objective of the project.

5) S.W.O.T analysis:
According to the survey we have done, we found that there are some strong points about TVS group as well
as some flaws in there working fashion. We would present it to you by the SWOT analysis as follows:STRENGTHS: Quality product
Target oriented staff
Good working environment
Proper implementation of TPM policy
Tie-ups with foreign companies

WEAKNESSES:22

Lack of thinking beyond the market


Lack of marketing aftermarket
Lack of advertisement
OPPORTUNITIES: Can launch various categories of product in Scooty pep.
Lots of room in sales improvement of 2-wheeler
Can capture whole market as the competitors are lacking in low price with high quality for 2-wheeler
Can tie-up with 4-wheeler manufacturing company for O.E. products.
THREATS: Neglecting small machine shop will be beneficial for competitors to overcome our quality products
sale.
In 4-wheeler small the only reason why customer will purchase our product is series provided to
them; otherwise big industries will through us out of the competition.

Research Instrument:For this purpose Questionnaire & Observation has been used astool.
Contact Method: Direct survey of the employees and questionnaire for the customers.
Sampling Size: Sampling Area:I.

10 employees
20 customers
TVS motor (PCMC Area)

Does TVS adopt the sales promotion techniques?

Table No.:- 1
Yes: - 85%
No: - 15%

23

Graph No.: - 1

PromOtion Activity
No; 15%

Yes; 85%

Interpretation:
According to survey it is found that TVS (85%) Adopt Promotion activity and (15%) Not.
II.

Which type of sales promotion technique adopted by TVS?

Table No.:- 2
Promotion Techniques
Discounts
Coupons
Free Gifts
Others

In %
60%
20%
10%
10%

Graph No: - 2

24

Promotion Techniques

Interpretation:
According to survey used Sales and promotion Techniques by TVS that (80%) respondent used discount
technique (20%) used coupons technique (10%) used free gift and other technique.

III.

How long one techniques is used by TVS motors?

Table No.:- 3
Time
1 Week
1 Week To 15 Days
16 Days to 30 Days
More Than 30 Days

%
60%
20%
15%
5%

25

Chapter No.5
26

FLOW CHARTS & DIAGRAMS

TVS two wheelers: -

27

1. WEGO: -

2. JUPITER: 3. SCOOTY PEP +: -

28

4. APACHE: -

29

5. PHEONIX: -

30

6. STAR CITY +: -

7. STAR SPORT: -

31

8. TVS XL HEAVY DUTY: -

32

Comparison between Jupiter &Activa: -

33

Comparison between TVS Star Sport & BAJAJ Discover (100 cc): -

34

35

Chapter No.7
CONTRIBUTINON TO THE HOST ORGANIZATION

36

OBSERVATION

In the future TVS motor Company will be the top 2-wheeler company in India and one among the top
five 2-wheeler company in Asia.

In current markets scenario, respondents give maximum no. of weightage to price the after they
consider mileage and colors respectively.

The study shows that more no. of respondents have connected as sources of income from agriculture.

The study shows that 51 respondents are already user of TVS motorcycle. So TVS is popular
Automobile Company in study region.

LIMITATIONS
37

This research conducted on a very small sample size, so it might be possible that the information given by
such respondents may not match with the replay of total customer available in the TVS at that time.

The limitation of the study was about time.

It might be possible that the answers given by the respondents are full of biasness.

As there are two types of respondents so there is difference between the responses towards the sales
promotion tools avail by both them which become a constraint towards the research project.

The number of respondents covered by me can`t give appropriate results rather can provide some
ideas.

Sometimes respondents not interested.

CONCLUSION
38

The research project was good experience in two months. It enables to come the different opinion
of the customer about the TVS motors.TVS motors taking many opinions from the customer they utilize
all the opinion in new production.Company should design new and attractive offers as well as policies
such as warranty so as it is helpful in promotion process.In the context of price, quality, service back up,
maintenance and safety. It was possible to understand the level of customer satisfaction factors.Promotion
activities very useful to know all information about product at TVS.TVS motors price is not very high
compare to the competitor product so everyone can buy as per his/her need.

TVS taking care of his customer or delight the customers with its product quality.TVS should try
to enhance its post-sale service as preventive measure for maximizing the satisfaction level.The
preventive measure maintenance should be monitored on regular basis to maintain the brand image in
market, so that it competes with the competitors in the market.Most of the respondents are satisfied with
the services of Saibaba TVS motors.Less labor charge and service in time and increase in number of
service station they are three major parameters in demand.The sale of Scooty and Wego and Jupiter are
high as compared other vehicles.

SUGGESTIONS
39

Customer`s feedback should be taken in a better way.


Offers which are provided by company to the customers should be same for everyone.
There should be more & emphasis given by the company for satisfying the customer up to an
apex limit by providing the utility of every penny of his money.
The company can communicate & develop stronger customer bonding by providing social &
financial benefits.
The company should be flexible to bend its rules & procedures in the client`s favors.
Should increase the strengths of customer relationship management department by hiring the
component employee.
There should be more use of information technology.
To fulfill the needs of the respondents Saibaba TVS should set new branches near PCMC
Area, to reach the maximum number customer.
To know the problems faced by the customers at the time of post-sale service should conduct
free checkup camps and collect the feedback of at the time of service.

40

Chapter No.8
REFERENCES

Bibliography:Books:
Philip Kotler, 2008, Marketing Management 13thedition, Pearson Education, Keller, Koshy.
41

C.R.Kothari, 2011, Research Methodology 2nd edition, New Age International Publishers.
George EBelch&Michael, 6th Reviewed Edition Published by McGraw-Hill Higher Education.

Web sites:
www.tvs.co.in
www.Indian2W.com
www.wikipedia.com
www.businessline.com
www.google.co.in

42

ANNEXURE

Questionnaire

CUSTOMER PERSONAL INFORMATION:A. Name: B. Address:C. Contact no.:D. Gender:- Male / Female
43

E. Age(in year):18 to 20 ( )

21 to 25 ( )

26 to 30 ( )

31 to 35 ( )

36 to 40 ( )

41 & Above ( )

F. Occupation:Agriculture (
Students (

Businessman (

Professional ( )

Others ( )
G. Monthly income:5000 (

5000-10,000 (

10,000-15,000 ( )
20,000 Above (

15,000-20,000 (

1. Which model do you have from TVS Group?

2. Did sales person spend sufficient time with you and explain everything about the vehicle?
Yes:No:3. Was the vehicle delivered on promised time?
Yes:No:44

4. Were you offered a test drive during your visit to our showroom?
Yes:No:5. How do you feel about TVS two wheeler vehicles?
Excellence:Good:Moderate:Satisfactory:Unsatisfactory:6. According to you which promotion activities is most effective for TVS?
Advertisement
Newspaper
Selling
7. Would you prefer to follow promotion activities used by the competitors?
Yes:No:8. What kind of support services provide you provide your customers?

Information
Transport
Credit facilities
After-sales services
Guarantee and others

9. Which of the following promotion activities should adopted by your company?

Exhibition
Exchange offer
Discount
Gift vouchers

10. How do you rate service provided by TVS Saibaba?


Very good
45

Good
Average
Bad
Very bad
11. What are the different problems that you face at the time of servicing of your vehicle?
High price of spare parts

Delay in service

Not easily available

Low quality of spare parts

46