Marketing Strategies of Tvs Motors 1071913907

Marketing Strategies of TVS Motors
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TABLE OF CONTENTS
Executive Summary Theoretical Framework Objective of the Study Limitation of the Study Company Profile Milestones of the Company The Major Products Research Methodology Group Companies Company at Present and in Future Marketing Strategies adopted by TVS Conclusion Bibliography
Gitarattan International Business School
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EXECUTIVE SUMMARY
Ever since man evolved into social animal he felt the need for Transportation. As he formed a civilization he felt the need for Better Transportation. Today on the threshold of exploring the universe he feels the need for Best Transportation. Truly the modern world relies on transport which can be airways, roadways, railways and on water. Bicycle was the most important part of road transportation in early days and as the scenario changed bicycle was transformed into a fast, stylish and trendy mode of transport known as Motorcycle, now-a-days known as Motorbike. The topic of the project is Marketing Strategies adopted by automobile industry taking TVS Motors for comparison. TVS Motor Company is one of the leading bike manufacturers in India. For the study, secondary data is collected from business newspaper, magazines, company brochures, journals and the Internet. The major conclusion from this study was that TVS has to improve itself to gain the first position in the market as it is doing well to maintain its third position in the market. In terms of competition, TVS has nick-to-nick competition with Hero Honda and Bajaj. TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in India. This report incorporates sincere efforts to submit the best possible dossier on the topic assigned because no study can be perfect. There are bound to be limitations that I faced and within which I had to work.
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THEOROTICAL FRAMEWORK
MARKET
In economics, a market is a natural social structure developed by any economic or economically-oriented, human interaction to facilitate the exchange of rights, services or product ownership. Markets enable peoples' services, firms and products to be evaluated and priced. There are two roles in markets, buyers and sellers. The definition implies that at least three actors are needed for a market to exist; at least one actor, on the one side of the market, who is aware of at least two actors on the other side whose offers can be evaluated in relation to each other. A market allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. This is commonly done through trade. These trades may be handled a variety of ways, but in small market environments, buyers and sellers typically deal in currency, and goods. In everyday usage, the word "market" may also refer to the location where goods are traded, or in other words, the marketplace.
MARKET STRATEGY
A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
Types of strategies
Every marketing strategy is unique, but can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below:
Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies:
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Leader Challenger Follower
Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage.
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Cost leadership Product differentiation Market segmentation
Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
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Pioneers Close followers Late followers
Growth strategies - In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:
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Horizontal integration Vertical integration Diversification Intensification
A more detailed scheme uses the categories:

Prospector Analyzer Defender Reactor
Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies
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OBJECTIVE OF THE STUDY

1. The objective of the study is to analyze the customer buying behavior of the respondents in motorbikes of different brands. 2. To study the future prospects of TVS Motorbikes 3. To provide a fair picture of technology used by TVS Motors 4. To study the sales trend of TVS Motors 5. To analyze the quality of after sales services being provided by TVS Motors
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LIMITATION OF THE STUDY

1. Time Constraint As the time was less so only the secondary data could be collected for the study 2. Personal bias Since the study required the comprehensive analysis, so there would be chances of personal bias.
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COMPANY PROFILE
TVS MOTOR COMPANY (inspiration in motion ")
COMPANY FLASHBACK
TVS Motor Company Ltd. was established in 1911byT.V.SundaramIyengar in India. The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of Chennai (formerly Madras). TVS Motor Company Limited is the flagship company of TVS Group, the USD 2.2 billion group. The Group is the third largest two-wheeler manufacturer in India and globally among the top ten, with an annual turnover of over USD 650 million. Currently, the group has more than 30 companies and employees over 40,000 people worldwide. With steady growth, expansion and diversification, it commands a strong presence in the manufacturing of two-wheelers, auto components and computer peripherals. They also have vibrant businesses in the distribution of heavy commercial vehicles (HCV) passenger cars, finance and insurance. 1980 is the red letter year for TVS when India's first two-seater moped rolled out that redefined the realm of personal transportation. In 1982, the company entered into a technical collaboration with Suzuki Motor Corporation of Japan which helped the fledgling joint venture gain from the expertise of a global two-wheeler giant like Suzuki. In 2000, the TVS group and Suzuki Motor Corporation parted ways from their joint venture with the former buying out the 25.97 per cent stake of the Japanese company for Rs 9 crore. Globally, TVS Motor Company is the first two-wheeler manufacturer to be honored with the hallmark of Japanese Quality - The Deming Prize for Total Quality Management. It is the only automotive manufacturer in India to get the prestigious Deming Prize. One of its subsidiaries Sundaram Clayton was the first company in India to receive the Deming followed by Sundaram Brake Linings also getting the Deming Prize. This prize is "given to
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organizations or divisions of organizations that have achieved distinctive performance improvement through the application of TQM in a designated year."Sundaram Clayton went on to be awarded the Japan Quality Medal.
MILESTONES OF THE COMPANY

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1980 1984 1994 1996 1997 2000 2001
India's first 2 seated 50cc Moped TVS 50, launched in Aug. First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept. Launched first indigenous Scooterette (sub-100 cc variomatic scooters), TVS Scooty in June. Introduced first catalytic converter enabled motorcycle, the 110cc Shogun in Dec. Launched India's first 5-speed motorcycle, the Shaolin in Oct. Launched TVS Fiero, India's first 150 cc, 4 stroke motorcycle in April. Launched TVS Victor, 4-stroke 110 cc motorcycle, in August, India's first fully indigenously designed and manufactured motorcycle.
2004
Launched TVS Centra in January, a world-class 4-stroke 100 cc motorcycle with the revolutionary VT-i Engines for best-inclass mileage.
Launched TVS Star in Sept, a 100 cc motorcycle which is ideal for rough terrain.
THE MAJOR PRODUCTS
MOTORCYCLES TVS Star Sport TVS Fiero F2 TVS Centra TVS Victor (110 cc) TVS Victor GLX (125 cc)
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Marketing Strategies of TVS Motors TVS Victor EDGE (125 cc) TVS Flame (125 cc,ccvti technology) TVS Apache (150 cc,13.7 Ps @8500rpm) TVS Apache RTR 160 TVS Apache RTR 160 EFI (Electronic Fuel Injection)
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SCOOTERS Spectra Dx (150 cc) Spectra Ax (150 cc)
SCOOTERETTES TVS Scooty ES (60 cc) TVS Scooty KS (60 cc) TVS Scooty Pep (75 cc) TVS Scooty Pep + (90 cc) TVS Teenz
MOPEDS TVS 50 XL (50 cc) TVS XL (60 cc) TVS XL Super (60 cc) TVS Champ (60 cc) TVS Super Champ (60 cc)
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RESEARCH METHODOLOGY
Research methods may be understood as all those methods/techniques that are used for the conduction of research. Research methods or techniques thus refer to the methods the researcher use in performing the research operations. In other words, all those methods which are used by the researcher during the course of studying his research problems are termed as research methods since the object of research, particularly the applied research, is to arrive at a solution for a given problem, the available data and the unknown aspects of the problem have to be related to each other to make a solution possible. Keeping, this view, research methods can be put into the following three groups:
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In the first group, we include those methods which are concerned with the collection of data. These methods will be used where the data already available are not sufficient to arrive at the required solution. The second group consists of those statistical techniques which are used for establishing relationships between the data and the unknown. The third group consists of those methods, which are used to evaluate the accuracy of the results obtained. Research methods falling in the above stated last two groups are generally taken as analytical tools of research. Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically. Because of the time constraint only the secondary research is done in studying the market strategies of the company.
GROUP COMPANIES
With steady growth; expansion and diversification, today TVS commands a strong presence in various fields two wheelers, automotive components, automotive spares, computer peripherals and finance. Lakshmi Auto Component Ltd. Lucas Indian Service Ltd. Axles India Ltd. Brakes India Ltd. Harita Grammer Ltd. India Motor Parts And Accessories Ltd. Gitarattan International Business School - 12
Marketing Strategies of TVS Motors Indian Nippon Electricals Ltd. Lucas TVS Ltd. Madras Auto Service Southern Roadways Ltd. Sundaram Brake Linings Ltd. Sundaram Fastners Ltd. Sundaram Finance Ltd. Sundaram Industries Ltd. Sundaram Motors Sundaram Clayton Ltd. TV Sundaram Iyengar & Sons Ltd.
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COMPANY AT PRESENT AND IN FUTURE

1. Successfully launched the Victor and Fiero F2 models after parting ways with Suzuki 1. Two Wheelers markets show sign of revival after a lackluster first half 2. Recently launched the StaR Sport and 125cc TVS Victor GLX and four stroke Max in the pipeline, which would be launched later this year 3. Plans major foray into three wheeler and quadricycles market through fresh investment of Rs 500 crore 4. Actively looking to set up manufacturing unit in Indonesia and Vietnam 5. Strong focus on R&D and product development Gitarattan International Business School - 13
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VICTOR THE SAVIOUR TVS launched Victor 110 cc model in September 2001, with leading cricketer Sachin Temdulakar as the brand ambassador. The model proved to be a big success. The success of TVS Victor is especially significant because it was developed with indigenous technology Two New Launches could out TVS on a high Growth Trajectory TVS CENTRA TVS Centra a new look model has recently been launched and the company has set ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per month.
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Also, a new upgraded 125cc TVS Victor has been launched which will improve the trajectory of the company. TVS MOTOR COMPANY LAUNCHES STAR SPORT, A NEW 100cc MOTORCYCLE Two wheeler major, TVS Motor Company expanded its economy segment offering with the launch of a new motocycle, Star Sport. Star Sport is a stylish, compact and affordable 100cc motorcycle, aimed at discerning urban motorcycle customers who are on the look out for sleek and compact style. The Bike has been built to deliver punchy four stroke performance with excellent mileage and effortless maneuverability that will have customers tackle busy city traffic with absolute ease.
THREE WHEELER PROJECT ENTERING A NEW MARKET TVS Motor has set the stage for entry into the three wheeler market with the setting up of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the company would be targeting the sub one tonne passenger and goods carriers segment of the market. With an investment of about Rs. 50 crore in phase I, it will cater to both passenger and cargo segments. The total investment for the three wheeler and four wheeler quadricycle project are expected to be in the range of Rs 500 crore in the next 2 to 3 years. It plans to go with the petrol version of three wheelers and expects higher demand to come from B class towns. The company expects higher margin and low competition in three wheeler business as compared to its two wheeler business. Three wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY 05, and are expected to grow at the same rate for the next five years. TVS is expected to roll out its first three Gitarattan International Business School - 15
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wheeler by the end of FY 07 to garner a 30% market share with around 1,00,000 unit sales by the end of FY 09.
THREE WHEELER MARKET SCENARIO There are two main segments in the Indian Passenger three wheeler markets are: Number of seats including driver not exceeding 4 and maximum max not exceeding one tonne Number of seats including driver excluding 4 but not exceeding 7 max mass not exceeding 1.5 tonne The three wheeler goods carrier segments are: Maximum mass not exceeding one tonne Others Around 95% of the three wheeler sold in India belong to the smaller vehicles category in which Bajaj Auto is the major player and has around 90% market share. The other players in the segment are Atul Auto and Piaggio Group, Italy. Similarly, in the three wheeler segment, domestic sales of the goods carrying variety grew a whopping 46.95%. This growth in 2002-03 could have possibly come from two factors: 1. The increasing number of cities whose corporations have legislated that larger goods carrier, like trucks be kept out for logistic purpose 2. The increase in the number of offerings in this category, especially from companies such as Mahindra & Mahindra and Piaggio Vehicles Private Ltd.
QUADRICYCLE A NEW INTRODUCTION IN THE INDIAN MARKET
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There is a new challenge emerging in the Quadricycle segment. These new vehicles could impact on the entry level sale. Quadricycles are three wheelers converted into four wheelers by using, a column axle. All the major units have prepared quadricycles prototypes. PLANS SETTING UP MANUFACTURING UNITS IN INDONESIA/VIETNAM TVS Motor is actively looking to set up a foothold in the south-east Asian markets and has made top level visits to Indonesia and Vietnam. Indonesia is the third largest two wheeler market in the world with an estimated size this year of 2 million units. Presently, in Indonesia there is one motorcycle for every 15 people, in Vietnam one for every 7 people. Further, in Indonesia 40 million households, representing 86% of the total not having motorcycle. Merger of the Engine Components Division of Lakshmi Auto Components with TVS Motors TVS Motor would merge engine component division of Lakshmi Auto Component Ltd (LAC) and investments and other assets with itself and the dwap ratio has been fixed at once phase of TVS Motor
DATA ANALYSIS AND INTERPRETATION

MARKET STRATAGIES FOLLOWED BY TVS
1 .Star and Apache - key volume drivers Much of the volume growth is being contributed by the Star and Apache along with a fillip from the Victor variants. For the period April - October 06, the company recorded 9,37,405 units of two wheelers compared to 7,70,841 units recorded in the previous year, at a growth of 22%. The motorcycles during this period clocked 5,84,155 units at a growth rate of 30%. TVS Star brand crossed the 1 million sales mark since its launch and with the recent launch of the electric start variant the demand for the vehicle is expected to grow Gitarattan International Business School - 17
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further in the coming months. Apache continues to be in demand and has captured sizeable share in the premium segment of the motorcycle market. 2, Brand Building focus to sustain The company has been spending whole-heartedly in creating its key model brands. The company plans to capitalise on the sizable success achieved by top brands in respective segments. The Star, Victor and Apache in respective segments have done well and all future efforts would be directed towards keeping the brand image live and fresh by introducing newer variants of the existing successful bikes. 3. Trying to capture the Imagination of people TVS Motors launches seven products in one go TVS Motors, the country's third largest two-wheeler manufacturer, launched seven products here on Thursday in a first-of-its-kind rollout in the Indian automobile industry.
Apache RTR 160 EFI The seven products include a completely new 125 cc motorcycle FLAME, an all new 110 cc StaR City, an Apache variant with fuel injection technology and the electric variant of a Scooty.
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TVS Flame (125cc) The other three products were the petrol, CNG and LPG version of a three-wheeler passenger vehicle that will compete with the Bajaj group, the only player in that segment. "This is the first step to make the announcement of TVS as a young Indian multinational company. We have done significant amount of hard work in the last three years and now 2007 will mark the emergence of new TVS," said Venu Srinivasan, chairman and managing director of TVS Motors. He added that the simultaneous rollouts are a tribute to the engineering skill of the research and development wing of TVS, making it the first two-wheeler company to make multiple rollouts in a single day. He said the production of all newly launched vehicles will start in October and they will hit the road by November. "Each new rollout signals avowed intent on the part of TVS to regain market share and momentum within the industry. The new offerings are targeted at different segments of the two-and three-wheeler customers with emphasis on superior technology, styling and engine capabilities," said Srinivasan. In its bid to make more environment-friendly vehicle, TVS also announced the launch of its new CCVTi (controlled combustion variable timing intelligent) engine, which will be integrated in the newly launched 125cc FLAME.
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"The CCVTi engine not only reduces the carbon dioxide but also cuts down carbon monoxide production by 70 per cent. The Indian auto industry has to make its best effort to make a green revolution," said Srinivasan.
TVS starCity (110cc) The new StaR City comes in a 110 cc platform while the Apache RTR is mated with electronic fuel injection and has a greener technology. Out the seven models launched, three were versions of a three-wheeler passenger vehicle in petrol, CNG and liquefied petroleum gas (LPG) variants. "The CNG is just an alternate source of fuel for us. And it can be on any platform - maybe a motorcycle or a scooter. But it will be a motorcycle," said Srinivasan. The other four launches were a completely new 125 cc motorcycle FLAME, an all new 110 cc StaR City, an Apache variant with fuel injection technology and the electric variant of Scooty.
TVS scooty Teenz Electric
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"The auto industry has to make its best effort to make a green revolution by developing the technology of the future," said Srinivasan. The TVS chief added the company has plans for a "hybrid vehicle" but it would take a long time as the cost is significantly high and the market is niche.
4.Customer Satisfaction And Quality The continued improvement in quality of its products has resulted in the company winning several quality awards as well as bringing in more value for its customers. Last year, TVS Apache, which was awarded 'Bike of the Year 2006' by several leading auto magazines, was chosen as the number 1 motorcycle brand in its class, in an all India customer satisfaction survey conducted by TNS Automotive. Recently, TVS Apache won the 'NDTV Car & Bike AAA viewers choice Bike of the Year 2007' award, thus reinforcing customer's preference. During the year, the company offered a unique 5year warranty scheme for its discerning TVS StaR customers. 5.Research And Development Several Advanced Engineering and technological researches are constantly undertaken by the company to ensure world-class products are offered to its customers. TVS Motor works closely with global Design and Research houses to give the Indian Consumer the very best in terms of technology, style and fuel efficiency. The company has applied for over 150 patents and its R&D team has published 33 technical papers in national and international conferences
6.Increasing Nationwide Network And Reach
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TVS Motor Company is aggressively increasing its national reach of its sales and service footprint through increased national network for customer access. Currently the products of the company can be purchased and serviced from over 3000 points.
7.Creating goodwill in the market- Serving the society This extended arm of the company believes in social responsibility and has involved itself in several community development initiatives that have significantly improved the standard of living of the people in 51 adopted villages across the country. Economic development The program enables people below the poverty line in these adopted villages to earn their livelihood by involving them in activities that generate income.. Health Health is one of the main focus areas of the Srinivasan Services Trust. Dental care camps; eye camps, health check-up and nutrition programs are conducted. The initiative also focuses on primary health, maternal health, child-care and leprosy eradication. Infrastructure Development The company is actively involved in the community development of the villages by providing infrastructure facilities such as housing, sanitation, roads, drains, bus shelters, medical centre and natural resources management. Rebuilding Quake Hit Villages Supported by Rural Agro Research & Development Society and Kutch Nav Nirman Abhiyan, the Company has rebuilt Goyersama a village in the District of Gujarat, which was hit by an earthquake of unprecedented scale and magnitude on 26th January 2001.
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Education and Literacy In addition to providing infrastructure facilities like new buildings for school, the Company helps establish computer education programs for school children. The Srinivasan Services Trust has successfully achieved 98% primary school enrollment in the adopted villages 8.Changing Technology when needed After the controversial legal duel with Bajaj Auto on ignition technology, the Chennaibased two-wheeler manufacturer TVS Motors,launched its 125cc motorcycle 'Flame' with a new and modified engine. The company incorporated a single-spark ignition engine based on controlled combustion variable timing intelligent (CC-VTi) technology. The engine has been developed and patented by Austria-based AVL and has been licensed to TVS in India. AVL is the world leader in internal combustion engine technology and develops power train systems. It is a leading provider of technology to the global engine and automotive industry. The 125cc segment has blurred the line between the 100cc and 125cc segments and it has been reckoned as the new entry level of the bike riders, considering the element of youth and style attached to it. TVS Motors, considering this approach and segment and its increasing wide acceptance, has pitched Flame against the current rage, Bajaj Exceed. It is the combination of two factors, which would determine the acceptance of Flame. First, it is the time and then there are the features. Flame comes with the already accepted single-spark ignition. It's launch was to coincide with the Exceed. However, due to a legal duel with Bajaj Auto, its launch was delayed. And in this span, the Exceed has been branded and promoted as a motorcycle having premium features (mileage-108km and disc breaks). Hence, a lot would depend on the companys branding strategy and Flames fight with the features present in the Exceed (almost of a 150cc bike).TVS Motorss OPM has been hovering around 4-5%.
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Due to a slump in the sector, its sales have been dipping, bringing about a sharp decline in its NPM which decreased in September 2007 from 1.41%, to 0.65 % in the December 2007 quarter. TVS posted a net profit of Rs 5.83 crore for the quarter-ended December 31, 2007 as compared to Rs 11.46 crore in the quarter-ended December 31, 2006. 9. Launch goods carrier, gearless scooter (IANS) City-based TVS Motor Company Ltd will soon get into commercial vehicle segment, said a top official here Sunday. Talking to reporters after launching TVS King 200cc three-wheeler, company chairman Venu Srinivasan said: Next year we will launch a sub-one-tonne goods carrier. A diesel-powered three-wheeler will also be launched. He also said the company would launch a gearless scooter, a segment that is logging growth even when the motorcycles are registering slide in sales. We are targeting 30 percent market share in eighteen months time. The market size is around 1.8 million units per year, said H.S. Goindi, senior vice-president, international business and three-wheelers, TVS Motors. According to Srinivasan, the three-wheeler is expected to beef up the top line by Rs.2 billion in the coming year, selling around 30,000 units. Apart from the domestic market, TVS Motor will also export its TVS King to countries like Sri Lanka, Bangladesh, Latin America, Nigeria and others. The impact on the bottom line is difficult to quantify now, Srinivasan added. The Deming medal-winning company, which has a turnover of Rs.39.28 billion ($969 million), has invested around Rs.1.2 billion in developing its two-stroke three-wheeler in three versions - petrol, LPG and CNG. There is lot of commonality of components between our three-wheeler and two-wheeler engines. There will be around five-seven percent cost savings due to common parts, Srinivasan said. Gitarattan International Business School - 24
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As the sales of three-wheeler is largely dependent on the state government policy of issuing passenger carrying vehicle permits, Giondi said the company would work with various state governments to clear any misconceptions about this vehicle segment. TVS Motor is also wooing the auto rickshaw driver community with slew of incentives. The company is offering a free personal accident-cum-health insurance for the owner and his family (self, wife and three children) by paying the first year premium of Rs.264. The personal accident insurance cover will be for Rs.100,000 and the health insurance cover will be for Rs.30,000. Asked about using 200cc engine in TVS King while many others make similar vehicle with 150cc engines, Goindi said: The cities are becoming bigger and there are more flyovers. It is time that three-wheelers are powered by high power engines. The on-road price of TVS King ranges between Rs.90,000-Rs.130,000 depending on the variant. Asked about the possible impact the small cars could make on the three-wheeler sales, Srinivasan said: We dont foresee any impact on three-wheeler sales owing to the entry of Tata Nano or other cars. Earlier, Tamil Nadus Local Administration Minister M.K. Stalin launched TVS King by handing over the keys to two buyers. Appreciating TVS Motor for its impressive growth from a Rs.1 billion turnover company in nineties to its current position, Stalin said the state was progressing well in its industrialisation.
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10.Taking women on a ride THE automobile industry is in a sudden rush to cater to the transportation needs of the fairer sex. Vying with one another, the current bunch of scooterette manufacturers and potential players are trying to roll out products for women across age groups as their central focus. The special requirements of two-wheeler riding women; the features that will help ease their riding experience; and accessories that can be showcased as unique selling propositions are now driving innovation in designing scooterettes for this burgeoning class of riders. Women were always in the radar for manufacturers of these two wheelers, but only they were not projected as the primary focus. This was the case with the marketing strategies that Bajaj and Kinetic had adopted for the earlier versions of the Safire and the Zing respectively. The primary targets for these two-wheelers were college-going students, middle-income households and men and women alike. Now, with the category showing signs of growing faster than the other two-wheeler segments and with the growth coming from the surge in purchases by women, manufacturers such as Bajaj, TVS Motor and Kinetic are keen on rolling out the red carpet to woo the divas. And, so, after revamping its scooterette, Bajaj has now relaunched the Safire as the new Wave and also come out with the new `when-you-are-happy-and-you-know-it' advertising campaign to attract women buyers. The new Wave is easier to ride, more powerful and, yet, more fuel-efficient and has attributes that are women-friendly. This partly redesigned scooterette that is also more trendy and good looking irons out some of the nit-picky engine and transmission problems that had bugged the erstwhile Safire.
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Not to be left behind, both Kinetic and TVS have now launched new, snazzier variants of their scooterettes and will try to hit back at Bajaj's attempt at a comeback into the premium scooterette segment. Small Kinetic
Of the two, though, Kinetic's Kine (a.k.a. Zing 80) only features cosmetic enhancements that give the scooterette new looks and a marginally better finish than the Zing 80, on which it is based. It continues to feature the same 71.5cc, two-stroke engine that puts out a maximum power of 4.2 bhp and a peak torque of 5.7 Nm. The kerb weight of the Kine is a feather-light 82 kg and fuel tank capacity is four litres. The additions and special features in the Kine is the new three-tone colour that gives the scooterette sportier looks and further highlights its design lines, the cola-can holder in the front, mobile charging point in the under-seat storage area, puncture-resistant tyres and the new headlamp. Some of these, such as the mobile charging point and can-holder, were also available in the Zing and these have been retained based on customer feedback, according to Kinetic.
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Kinetic has also used feedback from customers to come up with the new name `Kine'. The idea behind the new name being that for many years the good old Kinetic was being referred to (by users themselves) as `Kine' a nickname that the vehicle acquired on its own. Kinetic's research is also said to have shown that `Kine' as a word in itself has many characterstics of a popular brand, including instant recall and identification. As this scooterette is a smaller, lighter package with a lower price tag, Kinetic has decided to make it into a full-fledged brand of its own. Peppy plus Unlike the Kine, which features cosmetic changes, the new TVS Scooty Pep+'s alterations run deeper. For one, the new Pep+ sports a brand new, more powerful 90cc four-stroke engine that delivers a peak power of 5 bhp and a peak torque of 5.8 Nm. The engine feels refined and is said to be peppier compared to its 75-cc predecessor, which will continue to be available in the Scooty Pep. Dual tone colours and new racy graphics adorn the new Scooty Pep+'s body panels; a new stylish dash with an easy-reading speedometer cluster and a fresh new range of body colours has been added. The new Scooty Pep+ also gets a few neat touches that should make it more likeable for women riders. The LED lighting in the under-seat storage area, the cell-phone charger below the dashboard, the flourescent ignition key slot for better visibility at night and the innovative, patented centre-stand design with extra leverage that makes parking the scooterette a breeze, will all be features that will not only be appreciated by women of all age groups, but also by the men folk, who will invariably also be the users of this scooterette. The Bajaj Wave's advertising overtly focuses on women riders, but its other communication material and the scooterette's actual attributes do not reflect that specific focus. Gitarattan International Business School - 28
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Unlike the Bajaj, the TVS Scooty Pep and new Pep+ clearly focus only on the growing population of women two-wheeler users, though market research has showed that about 35 per cent of the current users are men. The Scooty Pep's brand ambassador is Preity Zinta and the new ad campaign for the Pep+ will attempt to focus on the improved power and playfulness of the new version. Kinetic, meanwhile, will continue to position the Kine (like it did for the Zing) as a practical, fuelefficient and attractive two-wheeler for the college-going public. The new TVS Scooty Pep+ has been priced at about Rs 33,000, ex-showroom in Chennai. The new Kine, on the contrary, will be available for about Rs 5,000 lesser, but will not be able to offer similar build and finish quality and as many features as the TVS Scooty Pep+. Fuel efficiency numbers, however, are unlikely to be much different between the two at about 50 kmpl (in city conditions), despite the Kine's two-stroke engine.
CONCLUSION
TVS Motor Company is one of the leading bike manufacturers in India. The major conclusion from this study was that TVS has to improve itself to gain the first position in the market as it is doing well to maintain its third position in the market. In terms of competition, TVS has nick-to-nick competition with Hero Honda and Bajaj. TVS has a lot of work to do if it has to take lead and remain the leading manufacturer in India.
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BIBLIOGRAPHY
WEBSITES
www.google.com www.tvsmotor.com
MAGAZINES
Autosports Business Outlook
NEWSPAPER
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Marketing Strategies of TVS Motors Times Auto Economic Times
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Marketing Strategies of TVS Motors

Gitarattan International Business School