CHAPTER 1.

INTRODUCTION

Marketing is an important socio-economic activity with history of many centuries. It is an

essential activity for the satisfaction of human wants and for raising social welfare.

Production is the base of marketing. It supplements production activities by distributing goods

and services. Marketing facilitate transfer of ownership of goods and services from producers to

consumers. Production will be meaningless if goods produced are not supplies to consumers

through appropriate marketing mechanism.

Marketing is a societal process by which individuals and groups obtain what they need and want

through creating, offering, and freely exchanging products and services of value with others.

For a managerial definition, marketing has often been described as “the art of selling products.”

But people are surprised when they hear that the most important part of marketing is not selling!

Selling is only the tip of the marketing iceberg. Peter Drucker, a leading management theorist,

puts it this way:

There will always, one can assume, be need for some selling. But the aim of marketing is to

make selling superfluous. The aim of marketing is to know and understand the customer so well

that the product or service fists him and sells itself.

Ideally, marketing should result in a customer who is ready

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MARKETING CONCEPTS

There is basic difference between marketing and marketing concept. Marketing is a continuous

activity in which goods and services are supplied to consumers by business. It is a narrow

concept dealing with exchange of goods or transfer of ownership. Marketing concept is the basic

philosophy behind the conduct of marketing activities.

Marketing is the expression of marketing concept in actual practice. Marketing concept suggests

the manner in which marketing activity is to be conducted.

The philosophy of an organization behind the conduct of marketing activities is called marketing

concept there are six distinct concepts of marketing which are as follows:

Exchange concept

Production concept

Product concept

Sales concept

Marketing concept

Societal concept

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ELEMENT OF MARKETING MIX

Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives

in the target market. McCarthy classified these tools into four broad groups that he called the

four Ps of marketing: product, price, place, and promotion.

3

ABOUT THE REPORT

TITLE OF THE STUDY:

The present study is titled as “MARKETING STRATEGY OF TVS HONDA”

OBJECTIVES AND SCOPE OF THE STUDY:

To gain in-depth knowledge about marketing strategies adopted by the organization.

To study importance and benefits of marketing strategies in general.

To study the role of marketing strategies in organization.

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RESEARCH METHODOLOGY:

To define any research problem and give a suitable solution for any research, a sound research

plan is inevitable. Research methodology underlines the various steps involved by the researcher

in systematically solving the problem with the objective of determining various facts.

Methods of data collection:

For completing this project two types of data was used:

Primary data collection

Secondary data collection

Primary data collection:In this project the primary data collection was mainly through the questionnaires to employees.

Secondary data collection:

I collected my secondary data from various marketing management books and websites.

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CHAPTER LAYOUT

CHAPTER 1:

Information of the project and introduction of the title

CHAPTER 2:

Profile of TVS HONDA

CHAPTER 3:

Theoretical view of marketing strategy

CHAPTER 4:

Analysis on marketing strategy with reference to TVS HONDA

CHAPTER 5:

Conclusion of the study

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CHAPTER 2.

PROFILE

INTRODUCTION OF TVS

TV Sundaram Iyengar and Sons Limited (TVSs) is the holding company for the TVS Group of

companies engaged in the manufacturing of almost all

kinds of automotive components, best two wheelers and

a few other industrial products. They are also into the

financial services sector. The turnover of the entire

group was close to $2 billion in 2003.

TVS was founded by T. V. Sundaram Iyengar in

1911.

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 allowed by

Sundaram Brake Linings also getting the Deming Prize. This prize is "given to 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.

The TVS group of companies is mainly situated in Padi, Tamil Nadu, in the outskirts of Chennai

(formerly Madras).

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HISTORY OF TVS MOTORS

TVS Group is one of India's oldest business groups. It is a giant conglomerate with presence in

diverse fields like automotive component manufacturing, automotive dealerships and electronics.

Today, there are over thirty companies in the TVS Group, employing more than 40,000 people

worldwide and with a turnover in excess of USD 2.2 billion.

TVS Group originated as a transport company in 1911. TV Sundaram Iyengar and Sons Limited

are the parent and holding company of the TVS Group. TV Sundaram Iyengar and Sons Limited

have the following three divisions:

TVS and Sons: TVS and Sons is the largest automobile distribution company in India. It

distributes Heavy Duty Commercial Vehicles, Jeeps and Cars. TVS and Sons represent premier

automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., and Honda. The

company is also one of the leading logistics solution providers and has set up state-of-the-art

warehouses all over the country. TVS and Sons have also diversified into distributing a range of

Garage equipments.

Sundaram Motors: Sundaram Motors distributes Heavy Duty Commercial Vehicles, Cars, and

auto spare parts for several leading manufacturers. The company is also the dealer for Ashok

Leyland, Honda, Fiat, Ford and Mercedes Benz.

Madras Auto Service: Madras Auto Service distributes automotive spare parts for all leading

manufacturers.

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Other major companies of TVS Group are:

TVS - Motor Company Limited: TVS Motor Company Limited is one of the largest two-

wheeler manufacturers in India. It manufactures Motorcycles, Mopeds, Scooterettes and

Scooters.

TVS Electronics Limited: TVS Electronics was incorporated in 1986 in collaboration with

Citizen Watch Co. of Japan. The company manufactures a complete range of computer

peripherals.

Axles India Limited: Axles India was promoted by Sundaram Finance, Wheels India and Eaton

Corporation for the manufacture of axles for medium and heavy duty commercial vehicles in

India.

Plastic compounds for various applications. Brakes India Limited: Brakes India is a joint

venture between TV Sundaram Iyengar and Sons Ltd. and Lucas Industries Plc., UK. It

manufactures braking equipment for automotive and non-automotive applications.

Sundaram Polymers Division: Sundaram Polymers Division manufactures Engineering

Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS Group. It

deals in retail finance, hire purchase, leasing and bill discounting.

India Motor Parts and Accessories Limited: It is engaged in the distribution of automobile

spare parts.

India Nippon Electricals Limited: It is a joint venture between Lucas Indian Service and

Kokusan Denki Co Ltd., Japan. The company manufactures Electronic Ignition Systems for two

wheelers and portable genets. ,etc.

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TVS Company in brief

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the

top ten in the world, with annual turnover of more than USD 1 billion in 2007-2008, and is the

flagship company of the USD 4 billion TVS Group.

A bike for anyone

TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing

inspired motorcycles.

Motorcycles (TVS Apache, TVS Star, TVS Flame)

Variomatic Scooters (TVS Scooty Streak, TVS Scooty Pep +, TVS Scooty Teenz) and

Mopeds (TVS XL Super, TVS XL Heavy Duty)

Penchant for Quality

The company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh,

North India and one at Indonesia. The company has a production capacity of 2.5 million units a

year.

Innovation at the helm

TVS Motor's strength lies in design and development of new products - the latest launch of 7

products on the same day seen as a first in automotive history. We at TVS deliver total customer

satisfaction by anticipating customer need and presenting quality vehicles at the right time and at

the right price. The customer and his ever changing need is our continuous source of inspiration.

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TVS Motor Company - Vision

We are committed to being a highly profitable, socially responsible, and leading manufacturer of

high value for money, environmentally friendly, lifetime personal transportation products under

the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and

prosperity for employees, dealers and suppliers.

15 million smiles on the Road

TVS has always stood for innovative, easy to handle, environment friendly products, backed by

reliable customer service.

No wonder, then, that our 15 million customers on the road have a reason to smile.

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CHAPTER 3

THEORETICAL VIEW

Marketing 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. A marketing strategy should be centered around the key concept that customer

satisfaction is the main goal.

A marketing strategy is most effective when it is an integral component of firm strategy, defining

how the organization will successfully engage customers, prospects, and competitors in the

market arena. Corporate strategies, corporate missions, and corporate goals. As the customer

constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A

key component of marketing strategy is often to keep marketing in line with a company's

overarching mission statement.

Basic theory

The basic theory of marketing strategy is:

Target Audience Proposition/Key Element Implementation The Five D's Tactics and actions

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains

a set of specific actions required to successfully implement a marketing strategy. For example:

"Use a low cost product to attract consumers. Once our organization, via our low cost product,

has established a relationship with consumers, our organization will sell additional, higher-

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margin products and services that enhance the consumer's interaction with the low-cost product

or service."

A strategy consists of a well thought out series of tactics to make a marketing plan more

effective. Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives. Plans and objectives are generally

tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and action

sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which

might include advertising, channel marketing, internet marketing, promotion and public relations

can be orchestrated. Many companies cascade a strategy throughout an organization, by creating

strategy tactics that then become strategy goals for the next level or group. Each one group is

expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it

is important to make each strategy goal measurable.Marketing strategies are dynamic and

interactive. They are partially planned and partially unplanned. See strategy dynamics.

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business.

However there are a number of ways of categorizing some 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:

Leader Challenger Follower

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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 firm’s sustainable competitive

advantage.

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:

1. Pioneers 2.Close followers 3.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:

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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Strategic models

Marketing participants often employ strategic models and tools to analyze marketing decisions.

When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of

the strategic environment. An Ansoff Matrix is also often used to convey an organization's

strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing

plan to pursue a defined strategy.

The Consumer-Centric Business

There are a many companies especially those in the Consumer Package Goods (CPG) market

that adopt the theory of running their business centered on Consumer, Shopper & Retailer needs.

Their Marketing departments spend quality time looking for "Growth Opportunities" in their

categories by identifying relevant insights (both mindsets and behaviors) on their target

Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in

market trends, segment dynamics changing and also internal brand or operational business

challenges.The Marketing team can then prioritize these Growth Opportunities and begin to

develop strategies to exploit the opportunities that could include new or adapted products,

services as well as changes to the 7Ps.

The Marketing Mix (The 4 P's of Marketing)Marketing decisions generally fall into the following four controllable categories:

Product Price Place (distribution) Promotion

The term "marketing mix" became popularized after Neil H. Borden published his 1964 article,

The Concept of the Marketing Mix. Borden began using the term in his teaching in the late

1940's after James Culliton had described the marketing manager as a "mixer of ingredients".

The ingredients in Borden's marketing mix included product planning, pricing, branding,

distribution channels, personal selling, advertising, promotions, packaging, display, servicing,

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physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these

ingredients into the four categories that today are known as the 4 P's of marketing, depicted

below:

Fig 4. The Marketing Mix

These four P's are the parameters that the marketing manager can control, subject to the internal

and external constraints of the marketing environment. The goal is to make decisions that center

the four P's on the customers in the target market in order to create perceived value and generate

a positive response.

i) Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services

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ii) Price Decisions

Some examples of pricing decisions to be made include: Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination

iii) Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution

decisions include:

Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistics

iv) Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing

communication, that is, the communication of information about the product with the goal of

generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget

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Limitations of the Marketing Mix Framework

The marketing mix framework was particularly useful in the early days of the marketing concept

when physical products represented a larger portion of the economy. Today, with marketing

more integrated into organizations and with a wider variety of products and markets, some

authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people,

process, etc. Today however, the marketing mix most commonly remains based on the 4 P's.

Despite its limitations and perhaps because of its simplicity, the use of this framework remains

strong and many marketing textbooks have been organized around it.

The BCG Growth-Share Matrix

The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of

the Boston Consulting Group in the early 1970's. It is based on the observation that a company's

business units can be classified into four categories based on combinations of market growth and

market share relative to the largest competitor, hence the name "growth-share". Market growth

serves as a proxy for industry attractiveness, and relative market share serves as a proxy for

competitive advantage. The growth-share matrix thus maps the business unit positions within

these two important determinants of profitability.

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This framework assumes that an increase in relative market share will result in an increase in the

generation of cash. This assumption often is true because of the experience curve; increased

relative market share implies that the firm is moving forward on the experience curve relative to

its competitors, thus developing a cost advantage. A second assumption is that a growing market

requires investment in assets to increase capacity and therefore results in the consumption of

cash. Thus the position of a business on the growth-share matrix provides an indication of its

cash generation and its cash consumption.

Henderson reasoned that the cash required by rapidly growing business units could be obtained

from the firm's other business units that were at a more mature stage and generating significant

cash. By investing to become the market share leader in a rapidly growing market, the business

unit could move along the experience curve and develop a cost advantage. From this reasoning,

the BCG Growth-Share Matrix was born.

The four categories are:

Dogs - Dogs have low market share and a low growth rate and thus neither generate nor consume

a large amount of cash. However, dogs are cash traps because of the money tied up in a business

that has little potential. Such businesses are candidates for divestiture.

Question marks - Question marks are growing rapidly and thus consume large amounts of cash,

but because they have low market shares they do not generate much cash. The result is a large

net cash comsumption. A question mark (also known as a "problem child") has the potential to

19

gain market share and become a star, and eventually a cash cow when the market growth slows.

If the question mark does not succeed in becoming the market leader, then after perhaps years of

cash consumption it will degenerate into a dog when the market growth declines. Question marks

must be analyzed carefully in order to determine whether they are worth the investment required

to grow market share.

Stars - Stars generate large amounts of cash because of their strong relative market share, but

also consume large amounts of cash because of their high growth rate; therefore the cash in each

direction approximately nets out. If a star can maintain its large market share, it will become a

cash cow when the market growth rate declines. The portfolio of a diversified company always

should have stars that will become the next cash cows and ensure future cash generation.

Cash cows - As leaders in a mature market, cash cows exhibit a return on assets that is greater

than the market growth rate, and thus generate more cash than they consume. Such business units

should be "milked", extracting the profits and investing as little cash as possible. Cash cows

provide the cash required to turn question marks into market leaders, to cover the administrative

costs of the company, to fund research and development, to service the corporate debt, and to

pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its

value can be determined with reasonable accuracy by calculating the present value of its cash

stream using a discounted cash flow analysis.

Under the growth-share matrix model, as an industry matures and its growth rate declines, a

business unit will become either a cash cow or a dog, determined soley by whether it had become

the market leader during the period of high growth.

While originally developed as a model for resource allocation among the various business units

in a corporation, the growth-share matrix also can be used for resource allocation among

products within a single business unit. Its simplicity is its strength - the relative positions of the

firm's entire business portfolio can be displayed in a single diagram.

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Limitations

The growth-share matrix once was used widely, but has since faded from popularity as more comprehensive models have been developed. Some of its weaknesses are:

Market growth rate is only one factor in industry attractiveness, and relative market share is only one factor in competitive advantage. The growth-share matrix overlooks many other factors in these two important determinants of profitability.

The framework assumes that each business unit is independent of the others. In some cases, a business unit that is a "dog" may be helping other business units gain a competitive advantage.

The matrix depends heavily upon the breadth of the definition of the market. A business unit may dominate its small niche, but have very low market share in the overall industry. In such a case, the definition of the market can make the difference between a dog and a cash cow.

While its importance has diminished, the BCG matrix still can serve as a simple tool for viewing a corporation's business portfolio at a glance, and may serve as a starting point for discussing resource allocation among strategic business units.

SWOT Analysis

SWOT analysis is a simple framework for generating strategic alternatives from a situation

analysis. It is applicable to either the corporate level or the business unit level and frequently

appears in marketing plans. SWOT (sometimes referred to as TOWS) stands for Strengths,

Weaknesses, Opportunities, and Threats. The SWOT framework was described in the late 1960's

by Edmund P. Learned, C. Roland Christiansen, Kenneth Andrews, and William D. Guth in

Business Policy, Text and Cases (Homewood, IL: Irwin, 1969). The General Electric Growth

21

Council used this form of analysis in the 1980's. Because it concentrates on the issues that

potentially have the most impact, the SWOT analysis is useful when a very limited amount of

time is available to address a complex strategic situation. The following diagram shows how a

SWOT analysis fits into a strategic situation analysis.

SWOT Profile

The internal and external situation analysis can produce a large amount of information, much of

which may not be highly relevant. The SWOT analysis can serve as an interpretative filter to

reduce the information to a manageable quantity of key issues. The SWOT analysis classifies the

internal aspects of the company as strengths or weaknesses and the external situational factors as

opportunities or threats. Strengths can serve as a foundation for building a competitive

advantage, and weaknesses may hinder it. By understanding these four aspects of its situation, a

firm can better leverage its strengths, correct its weaknesses, capitalize on golden opportunities,

and deter potentially devastating threats.

Internal AnalysisThe internal analysis is a comprehensive evaluation of the internal environment's potential

strengths and weaknesses. Factors should be evaluated across the organization in areas such as:

Company culture Company image Organizational structure Key staff Access to natural resources Position on the experience curve Operational efficiency Operational capacity Brand awareness

22

Market share Financial resources Exclusive contracts Patents and trade secrets

The SWOT analysis summarizes the internal factors of the firm as a list of strengths and

weaknesses.

External Analysis

An opportunity is the chance to introduce a new product or service that can generate superior

returns. Opportunities can arise when changes occur in the external environment. Many of these

changes can be perceived as threats to the market position of existing products and may

necessitate a change in product specifications or the development of new products in order for

the firm to remain competitive. Changes in the external environment may be related to:

Customers Competitors Market trends Suppliers Partners Social changes New technology Economic environment Political and regulatory environment

The last four items in the above list are macro-environmental variables, and are addressed in a

PEST analysis.

The SWOT analysis summarizes the external environmental factors as a list of opportunities and

threats.

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When the analysis has been completed, a SWOT profile can be generated and used as the basis

of goal setting, strategy formulation, and implementation. The completed SWOT profile

sometimes is arranged.

When formulating strategy, the interaction of the quadrants in the SWOT profile becomes

important. For example, the strengths can be leveraged to pursue opportunities and to avoid

threats, and managers can be alerted to weaknesses that might need to be overcome in order to

successfully pursue opportunities.

 Strengths  Weaknesses      

1.

2.

1.

2.

3.

 Opportunities       Threats

1.

2.

3.

1.

2.

3.

Fig 5. SWOT profile

Multiple Perspectives Needed

The method used to acquire the inputs to the SWOT matrix will affect the quality of the analysis.

If the information is obtained hastily during a quick interview with the CEO, even though this

one person may have a broad view of the company and industry, the information would represent

a single viewpoint. The quality of the analysis will be improved greatly if interviews are held

with a spectrum of stakeholders such as employees, suppliers, customers, strategic partners, etc.

SWOT Analysis Limitations

While useful for reducing a large quantity of situational factors into a more manageable profile,

the SWOT framework has a tendency to oversimplify the situation by classifying the firm's

environmental factors into categories in which they may not always fit. The classification of

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some factors as strengths or weaknesses, or as opportunities or threats is somewhat arbitrary. For

example, a particular company culture can be either a strength or a weakness. A technological

change can be a either a threat or an opportunity. Perhaps what is more important than the

superficial classification of these factors is the firm's awareness of them and its development of a

strategic plan to use them to its advantage.

7S FRAMEWORK

It's all very well devising a strategy, but you have to be able to implement it if it's to do any

good. The Seven S Framework first appeared in "The Art Of Japanese Management" by Richard

Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been

so successful, at around the same time that Tom Peters and Robert Waterman were exploring

what made a company excellent. The Seven S model was born at a meeting of the four authors

in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was

taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known

as the McKinsey 7S model.

Managers, they said, need to take account of all seven of the factors to be sure of successful

implementation of a strategy - large or small. They're all interdependent, so if you fail to pay

proper attention to one of them, it can bring the others crashing down around you. Oh, and the

relative importance of each factor will vary over time, and you can't always tell how that's

changing. Like a lot of these models, there's a good dose of common sense in here, but the 7S

Framework is useful way of checking that you've covered all the bases. The Seven Factors are:

25

Fig 6. 7s Model

Strategy A set of actions that you start with and must maintain

Structure How people and tasks / work are organised

Systems All the processes and information flows that link the organisation together

Style How managers behave

Staff How you develop managers (current and future)

Superordinate Goals Longer-term vision, and all that values stuff, that shapes the destiny of the

organisation

Skills Dominant attributes or capabilities that exist in the organisation

There's a lot more to the 7S framework of course, especially how you apply it in practice. It may

appear as an outmoded concept in today's environment of "constant change and learning", but the

basic principle that you've got to watch a lot of factors all the time as you implement any strategy

still applies.

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Chapter 4.

Analysis

TVS Business Strategy

Senior Leadership

The leadership of TVS has been proactive in developing strategic management, envisioning

future direction of the firm, and being actively involved in internal development of associates,

managers, and staff. The five directors are all responsible for, promoting quality, motivation, and

improvement using quality tools, reviewing plans, competitive performance, goals and

objectives, education and training, customer and supplier relations.

Individual directors are responsible for overview and improvement of specific areas of activity,

such as finance and administration, office facilities, operations, research and development,

human resources, public relations and quality processes. They are very proud of their leadership

style, which includes high involvement, shared leadership, teamwork, and empowerment of

associates.

Policy, Planning, and Decision-Making

TVS has developed a unique strategy that has evolved over more than eight years. Policy and

planning are key parts of the AQA criteria. The World Competitive Manufacturing process and

established strategic planning and led TVS to think more broadly than conventional architectural

firms about their mission and vision. Consequently, they became very entrepreneurial.

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Customer Focus

TVS consciously develops processes and plans to enhance customer focus. Directors encourage

associates to focus on the needs of the customer. Simultaneously, these efforts contribute to

accomplishing their strategy and making their vision materialise. Thus, the processes may been

seen as planned, deliberate, and integrated. They include

Customer focused marketing approaches, Business development approaches, cross-selling, Innovative product/service development, such as Environmental Building Management.

People - linking strategy & operations

Human resource management (HRM) is extremely important in both the core business of

consulting as well as the new hospitality division at TVS. In a professional service organization,

human resources determine both the strategic and operational quality, and eventual success, of

the firm. This is a continuing emphasis at TVS. Three areas of HRM are consistently and

creatively addressed:

Recruiting and induction, Compensation and rewards, and Teamwork.

Operations and TQM Deployment

The vision of TVS focuses on three areas -- self, customers, and community. The company

developed the slogan, “Success through service,” in 1990. It later broadened its perspective to

include a customer and a community focus. They try to share it down very deep in the

organization. They have developed a company model that graphically integrates their vision and

the operational application of quality practices to every facet of the business. They are

consciously attempting to use operating systems, customer and associate feedback, and quality

28

improvement tools and techniques to provide an integrated approach to reaching their strategic

vision.

Integrating Strategic & Operational Management

The AQA criteria, are similar to those of the U.S. Malcolm Baldrige Award, the Canadian

Quality Award, and the European Quality Award, and stress an integrative system of

management, not just quality control. Hence, the seven components of the AQA form a set of

guidelines for structuring the organisation to integrate strategic and operational planning. These

components are presented as a framework for development of both integrative and operational

management thinking. They are used in the case to provide a broad outline for discussing the

past and present experience of TVS as it developed an integrated TQM focus and structure.

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TVS Awards & Rewards

Mr Venu Srinivasan was conferred with the prestigious JRD Tata Corporate Leadership Award

for the year 2004.

Leadership

Star of Asia Award to Mr. Venu Srinivasan, CMD TVS Motor Company by Business Week

International.

Venu Srinivasan, Chairman and Managing Director, TVS Motor Company was Honoured with

Doctorate in Science by University of Warwick, United Kingdom

Engineering

The Deming Prize - TVS Motor Company is the only two-wheeler company in the world to

be awarded the world’s most prestigious and coveted recognition in Total Quality Management.

Technology Award 2002 from Ministry of Science, Government of India for the successful

commercialization of indigenous technology for TVS Victor

TPM Excellence Award - First category by Japan Institute of Plant Maintenance (JIPM)

Asian Network for Quality Award 2004 - TVS Scooty Pep won the prestigious

'Outstanding Design Excellence Award' from Business World and National Institute of Design

30

Management

Emerging Corporate Giant in the Private Sector awarded by The Economic Times and the

Harvard Business School Association of India.

Best Managed Company award from Business Today, one of India’s leading business magazines.

TVS CONTEMPORARY SALES COVERAGE

TVS Motors one of the biggest bike makers has declared a growth of 3% in two wheeler sales for

the financial year 2008-09. The company has provided its growth to its exports and scooter sales,

which grew by 25% and 44%. Particularly, Export growth has shown a sales growth of 41% for

the year 2008-09.

The company’s sales for March 2009 stood at 121988 units, a 4% growth over the same period

last year, when it posted sales of 117045 units. Segment wise, while scooters registered

maximum YoY growth of 44%, mopeds grew by 7.3%, and motorcycle sales fell by 8.4% in the

same period. Motorcycle sales, however, grew cumulatively by 3% monthly over the financial

year 2008-09.

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TVS FINANCIAL POSITION

With rise in per capita income, lowering of interest rates, changes in consumer preference

towards trendier two-wheelers, there was a conscious shift in the composition of two-wheeler

industry led by increase in the demand of motorcycle as against scooters and moped. In FY04,

out of the total two-wheeler industry of 5.6 m units, the share of motorcycles was 77%, as

against 42% in FY99. During the period FY97 to FY04, while two-wheeler industry grew CAGR

of 10%, the demand for motorcycle grew at 27% CAGR. However, TVS managed to achieve a

CAGR of 11%. Thus while competitors were cashing on this boom, TVS' market share was

declining due to lack of a 4 stroke model in its stable. This fall has been somewhat restricted

with the introduction of `Victor' in 2003.

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TVS- STARCITY PROFILE The unique selling proposition of TVS Star City is its feather-like weight. So be very confident,

that once you have it by your side, like a swashbuckling lover you can easily sweep your female

off her feet. The other alluring facets of the bike involve the power economy indicator: This

actually serves the purpose of a tachometer as the indicator is based on the rpm and not the

speed. Take a sneak-peak into the other benefiting aspects of the bike.

Looks

Available in red, green, silver, blue & black

Stylish alloy wheels & sleek designed new exhaust

Magnesium alloys parts

Stylish headlamp & parking light

Ride switch

Power horse graphics

Intelligent speedometer

Control

Electric start

Reliable front & rear brakes

Power economy indicator

CVTI technology engine

4 speed, constant mesh transmission

Telescopic forks in front

Twin adjustable hydraulic shock absorbers

Headlight reflectors

Excellent transmission & valve train

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Comfort

Padded saddle seat

Comparatively light weight

Electric start

Single cradle, tubular suspension

2-way adjustable shockers

Halogen powered headlamp

Comfy palm grips on handle

Extra grip tyres

Mileage and Economy

Average of about 80 Kmpl

Fuel tank - 16 Litres

Reserve fuel capacity - 2.5 Litres

Affirmative points of TVS Starcity

TVS Starcity has a better external part and body It has enhanced head-lights. It has better pick up. It gives good average on the highway roads It gives long-life with less maintenance. TVS Starcity has stylish body graphics and muscular body framing. It has 4-stroke air cooled OHC engine delivers power of 5.5 kW @ 7500rpm. It has elegant head lamp, powerful indicators provide safer riding even at dark night.

MARKET SEGMENTATION OF TVS-MOTORS

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SexTVS motors have segmented their two wheeler scooteries and bikes in three techniques or

methods of market segmentation.

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1. GEOGRAPHIC SEGMENTATION: TVS-MOTORS has segmented market on the

basis of area. In this,

a. Region: TVS has segmented bikes & scooteries in to cities, districts, state, &nation.

b. Urban: TVS motors has segmented mainly in urban & semi-urban areas.because TVs

had done research that the urban customer prefer western life-style

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2. DEMOGRAPHIC SEGMENTATION: TVS motors have segmented their two-

wheeler bikes on the basis of age, sex, income.

a. AGE: TVS motors have divided the two wheelers on the basis of age.ie, Teenage

consumers and middle age consumers. TVs-motors introduces TVs Suzuki, victor etc for the

middle age consumers. TVs starcity,flame,apache ftr etc.for the teenage consumers.

b. SEX: TVs-motors has segmented bikes and scooteries on the basis of sex.ie; male-

consumers and female-consumers.tvs motors has launched TVS victor, Apache, starcity,flam

etc.for the male consumers. Were as TVS motors has launched Tvs scooty,scooty pep,scooty

streak etc. for the female consumers.

c. INCOME: TVS MOTORS has segmented their two-wheelers on the basis of

income.ie; middle income group and higher income group.Tvs has charged reasonable value for

their bikes and scooteries which middle income group consumers and higher income group

consumer will easily afford.

3. PSYCHOGRAPHIC SEGMENTATION: TVs has segmented two-wheelers on the

basis of psychographic factors such as life-style and personality.

a. lifestyle – TVS motors has divided their products on the lifestyle of consumers today

college students ride bikes in college campus just for showing there wealth & lifestyle to the

society.tvs has focused on the bases of lifestyle.

b. personality - TVS has also segmented their products on the basis of personality TVs

assumes that the person who rides the bike it will influence the personality of the person.

MARKETING MIX OF TVS-MOTORS

Tvs got the huge success by maintaining and obtaining a proper markting mix for there

motorcycles, bikes & for scotteris.

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Tvs has considered the four p’s for their two wheelers they are as follows-

PRODUCT PRICE PROMOTION PLACE

1. Product:- Tvs has given a great important to their products that is there bikes motorcycles

etc. in product Tvs has recommended or contained some of the important factors in their

products they are as follows:-

Product line and range

Total quality maintainece

Stylish shape

Shapes and design

Brand name and logo

After sale service

Tvs has a great line and range in bikes such as star city, apache,flame, victor, etc.tvs has also

maintained a better quality in bikes and scooteris.they provide best quality bikes to the consumer.

Tvs two wheelers also consider stylish shape, size, design in there products. Brand name and

logo are marked on each and every product. Tvs also provide better after sale service.

2. Price:- Prices is the exchange value of product TVS has also consider price as an

important marketing concept for the company. The price which contains:-

list price discount

discount

credit period

Installment facility

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As Tvs is the third largest automobile company in India, so they give much more focus on the

price of these two wheelers. Tvs has charged very reasonable price for their bikes as compared to

other competitive products.

TWO-WHEELERS PRICE

TVS STARCITY 42000-45000

HERO-HONDA SPLENDER 50000-62000

BAJAJ PULSAR 50000-55000

YAMAHA 53000-57000

From the schedule we see that TVS Starcity has a reasonable price other than hero Honda,

Yamaha, bajaj.

Every public and private bank provides two wheeler loans for the purpose of purchasing two

wheeler which help the consumers for getting the better financial facility.

TVS has provide a Installment facility to the customer by just paying the money as a down

payment

3. Promotion: - Promotion means to inform consumers about the product and to provide them

to buy product.

Today every company go for promoting, marketing the product in a national and international

market.TVS MOTORS has considered the promotion as a key factor for promoting the products

and services.

Promotion mix contains: Advertising and publicity

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Press release Sales promotion Direct marketing

TVS promote their product by taking the support from mass-media communication.tvs advertises

their products on television, radio etc.

Tvs also maintain a good public relation by giving press release in newspaper.tvs disclose their

balance sheet, current-turnover, sales etc. in newspaper, magazines etc. TVs also go for sales

promotion by giving accessories with TVs products.

TVs hires marketing experts and consultants to promote and sale the product in a market. This

results in direct marketing done by TVS motors.

4. Place: - Place is also being considered as an important marketing mix. TVs has focused on

the place of distribution.

Place contains the following factors:-

Distribution channels Transports Company-Dealer relation

TVS has a direct distribution channel.ie; Company-dealer-customer.

Company deals with directly to the dealer and dealer deals with directly to the customers for the

purpose of sale of product.tvs has inventory plants in banglore,tamil-nadu etc.tvs has huge

number of dealers showroom in each and every state and district.

For example: - TVS dealer showroom situated in Kalyan, Dombivili etc.

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MARKETING STRATEGIES DONE BY TVS MOTORS

TVS Motors has adopted efficient Marketing Strategy for selling the product and services to the

customer.TVS has taken up the following steps for marketing their product in India. Following

are the steps:-

1) SPONSORSHIP IN EVENTS

TVS has sponsored India- Srilanka TVS CUP in 2004-05.By sponsoring, TVS has earned huge

surplus in 04-05.TVS has targeted this sport events as people give more importance to sports

TVS has done a huge advertisement in that period. The result gets in terms of decent demand

from public for TVS two-wheelers.

2) ADVERTISEMENT THROUGH MASS MEDIA

It is a very common promotional strategy done by every company. But TVS promote or advertise

their motorcycles and bikes at special events.

For e.g. ; TVS has launch new scooteries i.e. ,TVS Scooty Streak which was highly promote

during the time of IPL 09 and T20 WORLD CUP 09.Such advertisement and promotional

activities done by TVS through television, newspaper, radio partners etc.

3) DISPLAY OF POSTERS AND BANNERS

Tvs has done the promotion activity by displaying the posters and banners of a particular product

whichever they are going to launch in a market with full information of the product near to the

malls, public-area, showrooms etc such display of banners and posters helps in the form of

marketing the products.

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4) MAINTAINANCE OF TQM

TVs still using the maintenance of total quality management in each and every two-wheeler.

Such maintenance of TQM is modifying the bikes in such a way that the stylish model, new-

design, new shape, size, colour etc.due to this consumer will eager to buy TVs two-wheelers.

5) CUSTOMER-SATISFACTION

Tvs has focused on the aspects of customer satisfaction. TVs has taken up the charge to satisfy

each and every customers by providing correct and proper information of the two-wheelers.by

providing a good quality two-wheelers, clarification of positive and negative points of two-

wheelers, correct price charged for the customers, after sales service etc.which results in trust

and faithful response from the customers towards the TVS.

6) GOOD PUBLIC RELATION

For maintaining the good public relation TVS issues press release in newspaper, magazines

about the current business affairs of TVS, balance-sheet, new-projects, etc.such issuing of press

release maintain the good public relation with the company. It helps in promoting the products

easily and effectively.

7) SALES PROMOTION TECHNIQUE

Tvs motors carried sales promotion techniques at a time of festivals, special events etc.in a way

of free-gifts, accessories, low-price etc.such technique help TVS to increases the sales and

surplus of the company.

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8) EXIBITIONS AND DEMOS

Tvs recommends exhibitions and demos to the common public for the purpose of marketing and

promotional activity.in this TVs gives valuable information, presentations, demonstration about

their two-wheelers. This results in promoting of the product easily and correctly.

9) HIRING MARKETING EXPERTS AND CONSULTANTS

AS this is the new strategy adopted by TVS-MOTORS.in this they hires marketing experts and

consultants. These experts and consultant directly provide information of the product to the

general public. This results in direct marketing and promoting of two-wheelers in a market.

10) PENETRATION PRICING STRATEGY

As TVs follows the penetration pricing strategy for their two-wheelers bikes by charging

reasonable or low price as compared to competitors’ products. Such pricing strategy helps the

company for increasing the sales and surplus.as it is the main strategy followed by TVS-

MOTORS.

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Chapter 5

Conclusion

TVS is an organization that is full of contradictions. It has a strong TQM philosophy in

an environment where that is going out of style. It is highly dependent on motivating its

professional staff, yet it cannot settle on a consistent way to do so. It seeks to be innovative and

“sell” customers on the need for sustainable environmental practices, but cannot profitably do so.

It has brought in associates and inducted them into the practices of using the systems and

procedures it has developed for cost analysis and control, but still struggles with issues of

teamwork, empowerment and organisational governance. However, TVS’ approach has helped

make the organisation a profitable leader in a field where the old “norm” has been “cost plus a

profit for markup” and where the “boom or bust” environment means that less agile firms have

“gone bust.” Although it may need some “fine tuning” for some of its management and quality

systems, TVS is a generally healthy organization with an excellent outlook.

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Bibliography

Marketing management reference books

Webliography

www.google.com

www.wikipedia.com

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