A PROJECT REPORT ON
“Marketing Strategy of TVS WEGO” In the subject Strategic Management
SUBMITTED TO UNIVERSITY O MUMBAI SEMESTER I M!COM "ADVANCED "ADVANCED ACCOUNTING ACCOUNTI NG PART I#
BY NAME O STUDENT "SAMATA $! %EGDE# RO$$ NO "&'()')*# YEAR '+&,(&-
DEC$ARATION
I SAMATA $A.MINARAYAN %EGDE Roll No. &, / )')*, the student student of M.Com (Accountanc! Semester I ("#$%!, 0! V! Pen12arkar Co33ege4 Do56i73i4 Affiliated Affiliated to &ni'ersit of Mumbai, Mumbai, hereb declare that the roject roject for the subject Strategic Management of )roject reort on 8MAR0ETING STRATEGY O TVS WEGO9 :;65itte1 b me to &ni'ersit of Mumbai, for semester I e*amination is based on actual +or carried b me.
I further state that this +or is original and not submitted an+here else for an e*amination.
P3a
Signat;re of t2e St;1ent
"SAMAT "SAM ATA A $! %EGDE# %EGD E# "Ro33 No= ( &, ()')*#
AC0NOW$EDGEMENT
I SAMATA $A.MINARAYAN %EGDE Roll No. &, / )')*, the student student of M.Com (Accountanc! Semester I ("#$%!, 0! V! Pen12arkar Co33ege4 Do56i73i4 Affiliated Affiliated to &ni'ersit of Mumbai, Mumbai, hereb declare that the roject roject for the subject Strategic Management of )roject reort on 8MAR0ETING STRATEGY O TVS WEGO9 :;65itte1 b me to &ni'ersit of Mumbai, for semester I e*amination is based on actual +or carried b me.
I further state that this +or is original and not submitted an+here else for an e*amination.
P3a
Signat;re of t2e St;1ent
"SAMAT "SAM ATA A $! %EGDE# %EGD E# "Ro33 No= ( &, ()')*#
AC0NOW$EDGEMENT
It is a leasure to than all those +ho made this roject +or ossible. I -han the Almight Almight od for his blessings in comleting comleting this tas. -he successful comletion of this roject is ossible onl due to suort and cooeration of m m teachers, relati'es, relati'es, friends and +ell/+ishers. +ell/+ishers. I +ould lie to e*tend m sincere s incere gratitude to all of them. I am highl indebted to )rincial , Coordinator CA!Pra:a1 $i5aye4 and m subject teacher Dr! Ra>e:2ri De:2?an1e for their encouragement, guidance and suort. I also tae this oortunit to e*ress sense of gratitude to m arents for their suort and co/oeration in comleting this roject. 0inall I +ould e*ress m gratitude to all those +ho directl and indirectl heled me in comleting this roject.
Na5e of t2e :t;1ent SAMATA SAMATA $! %EGDE %EGD E
INDE.
SR!N
TOPIC
PG!NO
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I II III I5 5 5I 5II 5III I; ;
Introduction 1bjecti'e Research Methodolog Scoe And 6imitation Re'ie+ 1f 6iterature Concet )rofile :ata Analsis 0inding And Suggestions Conclusion
% 2 4 7 8 9 "# "4 34 37
INTRODUCTION
MAR0ETING STRATEGY "Marketing is not only much broader than selling; it is not a specialized activity at all. It encompasses the entire business. It is the whole business seen from the point of view of its final result, that is, from the customer
Mareting strateg is the goal of increasing sales and achie'ing a sustainable cometiti'e ad'antage. Mareting strateg includes all basic and long/term acti'ities in the field of mareting that deal +ith the analsis of the strategic initial situation of a coman and the formulation, e'aluation and selection of maret/ oriented strategies and therefore contributes to the goals of the coman and its mareting objecti'es. Some alternati'e definitions of the Mareting Concet include> "Your business will perform better, if you know what people want in the first place." Anon.
Mareting Strateg is artiall lanned and artiall unlanned. See strateg dnamics. Mareting strateg needs to tae a long term 'ie+, and tools such as customer lifetime 'alue models can be 'er o+erful in heling to simulate the effects of strateg on ac?uisition, re'enue er customer and churn rate.
OBJECTIVES
-he objecti'e of studing mareting strateg and stud of the roject is to get no+s the mareting strateg of the -5S @1 roduct. -he aim is also to get no+ the customer resonse regarding the roduct and +hether the customer is satisfied +ith the roduct. -he stud of roject also includes the roduct a+areness in maret and +hether it is reaching the customer.
RESEARC% MET%ODO$OGY Pri5ary Data -he rimar data is the first hand information collected from resondents +ith the hel of ?uestionnaire, inter'ie+s, schedules .In this roject a structured ?uestionnaire is reared and data of 3# resondents is collected tabulated and analBed on ercentage basis.
Se
SCOPE AND $IMITATION
-he rimar data is collected from 3# customers of -5S @1. -he data is collected +ith the hel of ?uestionnaire. -he ?uestionnaire includes $# ?uestions. -he information ro'ided b resondents is sufficient to ro'e the accurac of stud and its data analsis.
REVIEW O $ITERATURE DEINITION
-he mareting guru )hili otler defines the Mareting Concet as> "he marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors"
-his otler breas do+n into four comonentsD Maret 0ocus, Customer 1rientation, Coordinated Mareting and, )rofitabilit. Some alternati'e definitions of the Mareting Concet include> "Your business will perform better, if you know what people want in the first place." Anon.
CONCEPT
Marketing Strategy Mareting strateg in'ol'es careful and recise scanning of the internal and e*ternal en'ironments. Internal en'ironmental factors include the mareting mi* and mareting mi* modeling, lus erformance analsis and strategic constraints. *ternal en'ironmental factors include customer analsis, cometitor analsis, target maret analsis, as +ell as e'aluation of an elements of the technological, economic, cultural or oliticalElegal en'ironment liel to imact success. A e comonent of mareting strateg is often to ee mareting in line +ith a coman
De7e3o?ing a 5arketing :trategy Mareting strategies ser'e as the fundamental underinning of mareing lans designed to fill maret needs and reach mareting objecti'es. )lans and objecti'es are generall tested for measurable results. Commonl, mareting strategies are de'eloed as multi/ear lans, +ith a tactical lan detailing secific actions to be accomlished in the current ear. -ime horiBons co'ered b the mareting lan 'ar b coman, b industr, and b nation, ho+e'er, time horiBons are becoming shorter as the seed of change in the en'ironment increases. Mareting strategies are dnamic and interacti'e. -he are artiall lanned and artiall unlanned. See strateg dnamics. Mareting strateg needs to tae a long term 'ie+, and tools such as customer lifetime 'alue models can be 'er o+erful in heling to simulate the effects of strateg on ac?uisition, re'enue er customer and churn rate. Mareting strateg in'ol'es careful and recise scanning of the internal and e*ternal en'ironments. Internal en'ironmental factors include the mareting mi* and mareting mi* modeling, lus erformance analsis and strategic constraints. *ternal en'ironmental factors include customer analsis, cometitor analsis, target maret analsis, as +ell as e'aluation of an elements of the technological, economic, cultural or oliticalElegal en'ironment liel to imact success. A e comonent of mareting strateg is often to ee mareting in line +ith a coman
the otimal mareting mi* to attain these goals, and detail imlementation. A final ste in de'eloing a mareting strateg is to create a lan to monitor rogress and a set of contingencies if roblems arise in the imlementation of the lan. Mareting Mi* Modeling is often used to hel determine the otimal mareting budget and ho+ to allocate across the mareting mi* to achie'e these strategic goals. Moreo'er, such models can hel allocate send across a ortfolio of brands and manage brands to create 'alue.
Real-life marketing Real/life mareting rimaril re'ol'es around the alication of a great deal of common/senseD dealing +ith a limited number of factors, in an en'ironment of imerfect information and limited resources comlicated b uncertaint and tight timescales. &se of classical mareting techni?ues, in these circumstances, is ine'itabl artial and une'en. -hus, for e*amle, man ne+ roducts +ill emerge from irrational rocesses and the rational de'eloment rocess ma be used (if at all! to screen out the +orst non/runners. -he design of the ad'ertising, and the acaging, +ill be the outut of the creati'e minds emloedD +hich management +ill then screen, often b
mareting emloed. -his, almost instincti'e management, is +hat is sometimes called
Prin
(A)Who Are You Most small businesses may start because of a great idea yet have no clue as to who they are in the marketplace !art of your strategy involves de"ning your business# $reate a mission statement% and "nd your ob&ective% by addressing important% foundational 'uestions What is the point of your product or service ow does it help consumers or other businesses What is
the goal you are trying to accomplish Your answers should be succinct and clear
(*) $reate a Marketing +utline Your outline -- which should include your mission statement% ob&ective and your product or service -- serves as a reference for your marketing e,orts t must de"ne your short- and long-term goals because it.s important to understand what you are trying to achieve in order to appropriately allocate your resources /etermine your demographics0 understand why consumers would choose you and how you.re bene"ting them 1inally% do research about the competition and the marketplace to know your positioning +nce you are clear% you can put a marketing budget together
($) Where Are Your $ustomers Where to market and what tools to use depend on where you "nd your customers 2et to know your audience s this an nternetsavvy group% or are they more likely to respond to a postcard% brochure or some other item in the mail s it a short-term or long-term sale 3nderstanding who you are trying to market to is the key to your marketing strategy 4ust throwing mud on a wall to see if it sticks wastes precious resources (/) 1ocus $reates 5uccess
Many business owners see the big picture and too often want to serve the whole seven-course meal before their customers have
even tried the "rst course Your marketing strategy needs to think big but focus small Market the one thing you do e6ceptionally well% and focus your budget% your time and where you choose to spend your marketing dollars wisely When you have a solid return on investment% you also should have a solid understanding of what else your clients need 1rom there% begin focusing your marketing e,orts on the ne6t product or service% and watch your bottom line grow
Strategi< 5o1e3: Mareting articiants often emlo strategic models and tools to analBe mareting decisions. @hen beginning a strategic analsis, the 3Cs can be emloed to get a broad understanding of the strategic en'ironment. An Ansoff Matri* is also often used to con'e an organiBation
segment dnamics changing and also internal brand or oerational business challenges. -he Mareting team can then rioritiBe these ro+th 1ortunities and begin to de'elo strategies to e*loit the oortunities that could include ne+ or adated roductsD ser'ices as +ell as changes to the 7)s. Mareting articiants often emlo strategic models and tools to analBe mareting decisions. @hen beginning a strategic analsis, the 3Cs can be emloed to get a broad understanding of the strategic en'ironment. An Ansoff Matri* is also often used to con'e an organiBation
Mareting strategies ma differ deending on the uni?ue situation of the indi'idual business. Fo+e'er there are a number of +as of categoriBing some generic strategies. A brief descrition of the most common categoriBing schemes is resented belo+>
&! Strategie: 6a:e1 on 5arket 1o5inan
In this scheme, firms are classified based on their maret share or dominance of an industr. -icall there are four tes of maret dominance strategies>
6eader, Challenger, 0ollo+er, Nicher.
". Porter generi< :trategie: H
Strateg on the dimensions of strategic scoe and strategic strength. Strategic scoe refers to the maret enetration +hile strategic strength refers to the firm
narro+> •
)roduct differentiation Cost leadershi
•
Maret segmentation
@! Inno7ation :trategie: H
-his deals +ith the firm )ioneers, Close follo+ers, late follo+ers.
,! Grot2 :trategie: H
In this scheme +e as the ?uestion, =Fo+ should the firm gro+” -here are a number of different +as of ans+ering that ?uestion, but the most common gi'es four ans+ers> ForiBontal integration, 5ertical integration, :i'ersification, Intensification.
-hese +as of gro+th are termed as organic gro+th. ForiBontal gro+th is +hereb a firm gro+s to+ards ac?uiring other businesses that are in the same line of business for e*amle a clothing retail outlet ac?uiring a food outlet. -he t+o are in the retail establishments and their integration lead to e*ansion. 5ertical integration can be for+ard or bac+ard. 0or+ard integration is +hereb a firm gro+s to+ards its customers for e*amle a food manufacturing firm ac?uiring a food outlet. Jac+ard integration is +hereb a firm gro+s to+ards its source of sul for e*amle a food outlet ac?uiring a food manufacturing outlet.
A more detailed scheme uses the categories> Miles, Ramond ("##3!. 1rganiBational Strateg, Structure, and )rocess. Stanford> Stanford &ni'ersit )ress. ISJN #/8#%7/%8%#/3.
-! Marketing arfare :trategie: H
-his scheme dra+s arallels bet+een mareting strategies and militar strategies. JC
!R+178 TVS Motor Company LTD
-5S Motor Coman 6imited, +hich is art of -5S rou, manufactures motorccles, scooters, moeds and auto ricsha+s in India. -he founder of -5S Motor Coman 6td is . $ %undaram Iyengar . It +as founded in $978.-he C1 of -5S Motors Coman 6td is Mr. &. '. (adhakrishnan. -he M: and Chairman is Mr. $enu %rinivasan.
%i:tory
-5S +as established b -hrissur 5engaramas+am Sundaram Iengar . Fe began +ith Madurai
in a state of turmoil. Fe +ould go on to in'est in ne+ technolog, nurture in/house design, and imlement -oota/stle ?ualit rograms. 1'er the ears -5S Motor has gro+n to be the largest in the grou, both in terms of siBe and turno'er, +ith four state of the art manufacturing lants in Fosur , Msore and Nalagarh in India and ara+ang in Indonesia. -5S Motor is credited +ith man inno'ations in the Indian automobile industr, notable among them being the introduction of India
Aar1: -5S Motor +on the :eming Alication )riBe in "##".
-he same ear, the +or done for the -5S 5ictor motorccle +on -5S Motor the National A+ard for successful commercialiBation of indigenous technolog from the -echnolog :e'eloment Joard, Ministr of Science G -echnolog, and India. In "##%, -5S Scoot )e +on the <1utstanding :esign *cellence A+ard< from
)usiness *orld magaBine and the National Institute of :esign, Ahmadabad. -he
effecti'e imlementation of -otal )roducti'it Maintenance ractices +on -5S Motor the -)M *cellence A+ard gi'en b the Laan Institute of )lant Maintenance in "##8. -5S Motor has +on se'eral management a+ards, notable among them being the merging Cororate iant in the )ri'ate Sector a+arded b he +conomic imes and the Far'ard Jusiness School Association of India. )usiness oday magaBine a+arded -5S Motor the Jest Managed Coman and the Most In'estor 0riendl Coman a+ards. Its ad'ertising ractices +on it the ood Ad'ertising a+ard b Auto India Jest Jrand A+ards "##9. Coman Chairman 5enu Srini'asan is a reciient of se'eral a+ards for cororate e*cellence such as the Star of Asia A+ard b )loomberg )usiness *eek and the LR: -ata Cororate 6eadershi A+ard. -he &ni'ersit of @ar+ic , &nited ingdom ga'e him an honorar :octorate of Science degree +hile the o'ernment of India honored him +ith the )adma Shri, one of India
TVS WEGO
TVS Wego is a motor scooter manufactured b -5S Motor Coman.It is a unise*
scooter and +as launched in India in "##9. After the releasing se'eral 'ariants of -5S Scoot, the coman entered in the higher end segment of the scooterette maret b introducing @ego. -he scooter +as ad'ertised +ith the concet of bod balance.
-5S Motor Coman has incororated se'eral imro'ements in the engine of the ne+ -5S @1 maing it one of the smoothest erformers in its class. -he onl, all metal bodied scooter in India, -5S @1 is an ideal blend of stle, stabilit, maneu'erabilit, o+er and mileage,= said the coman in a ress release. -5S @ego +hich has a good consumer base in the countr is also a reciient of restigious India :esign Mar (I Mar! b the India :esign Council for its stlish design. Recentl, -5S also launched Star Cit, the refreshed 'ersion of Star Cit in India +ith a rice tag of ₹%%,### (e*/sho+room, :elhi!. -5S Star Cit, the latest in the Star range is o+ered b the same $#9.7cc single clinder air/cooled engine, +hich can generate a ma*imum o+er of 8.$8 bh at 7### rm and a ea tor?ue of 8.$ Nm at 2### rm. -he engine comes mated to a % seed gearbo* and the -5S
0ull digital console
•
-ubeless tres
•
)aring braes
•
Stlish ne+ muffler and -5S atented econometer
•
-+el'e/inch allo +heels
•
-elescoic front susension
•
as filled rear shoc absorbers
•
Multi/reflector halogen headlams
•
6: tail lam +ith otical guides
Engine S?e<:
$$# cc engine,8 bh o+er at P 72##rm.
DATA ANA$YSIS &! Is -5S @1 our first t+o/ +heeler Criteria Oes No
Re:?on1ent: "2 2
Per
respondent yes no
As er the table and the rel from the resondents, it is clear that 83.33 of the resondents ha'e bought the roduct for the first time. It means that the maret strateg adoted b the coman is successful in attracting the customer.
'!Are ou satisfied +ith the -5S @1 mileage
Criteria Oes No
Re:?on1ent $8 $"
Per
Respondents
Yes 9o
-he comanQs -5S @1 mileage is 4"mh, +hereas the sur'e of 3# resondents clears that onl 4# are getting a good mileage +hereas %# are not satisfied +ith it. -he roduct image regarding mileage is 'er good in the maret.
@.Are ou satisfied +ith after sales ser'ices ro'ided b -5S @1
Criteria Oes No
Re:?on1ent "" 8
Per
Respondent
Yes 9o
As er the ?uestionnaire sur'e almost all are satisfied +ith the after sales ser'ice ro'ided b -5S @1. It contains free ser'ices, regular ser'iceD etc .-his clearl indicates that the -5S are ro'iding good ser'ices to their customer.
,!@ill ou recommend -5S @1 to anbod to bu
Criteria
Re:?on1ent
Per
Oes No
"# $#
47 33
Respondents
Yes 9o
-he ie clearl indicates that the 47 +ill recommend buing -5S @1 as the had a 'er good e*erience +ith the 'ehicle. -he -5S @1 is said to be “Scoot )ulsar” as it for both the genders. -he remaining 33 recommend tring an other ind of 'ehicle to ha'e a good e*erience and the are of nature tring ne+ 'ehicles.
-!@hich -5S 5ehicle +ould ou lie to urchase other than @1
Criteria
Re:?on1ent
Per
Strea Luiter ust
8 $2 7
"7 2# "3
Respondents
5treak 4upiter :ust
-he ramid sho+s that the majorit of -5S 'ehicle holder +ill bu Luiter as it has attracted maret a lot. -he Luiter is gi'ing a tough cometition to Fonda Acti'a and Acti'a I. -he ust is recentl introduced b the -5S so it +ill slo+l attract the customer. -he strea is lighter in +eight and hence itQs not much customer attracted.
.@hich other scoot do ou find more fle*ible than -5S @1
Criteria
Re:?on1ent
Per
Acti'a I Fonda :io SuBui Access
"# 4 %
47 "# $3
Respondent
Activa onda /io 5u;uki Access
As er the ie in maret, Acti'a I is found to be most fle*ible 'ehicle and their seems 'er close cometition bet+een -5S @1 and AC-I5A I.As er the resondents Acti'a I is also erforming 'er +ell e'en if it is used roughl. -he @1 is famous for its centraliBed engine in 'ehicle.
)! Is -5S @1, an affordable scoot
Criteria Oes No
Re:?on1ent: $2 $2
Per
Respondent
Yes 9o
-he e*/sho+room rice of @1 is Rs.%4###E/ at. -he ie sho+ e*actl neutral analsis regarding affordabilit of @1. -he customer of @1 holder belongs to different categor and hence the sur'e sho+s a 'er neutral osition.
*!:oes the -5S Ser'ice Centre hels ou out +ith all our ?ueries regarding scoot
Criteria Oes No
Re:?on1ent $7 $3
Per
Respondent
Yes 9o
-he data sho+s that man of the resondents are not satisfied +ith the ser'ice centres of the @1. And man of them feel it 'er costlier than the garage. -he %3 are satisfied +ith the regular ser'icing of @1. It deends on the customer +hether to ha'e a good ser'icing or the garage art.
!If not -5S, +hich other comanQs scoot ou +ould had bued
Criteria Fonda Mahindra Oamaha
Re:?on1ent $8 2 7
Per
Respondent
onda Mahindra Yamaha
-he resondent made an oinion that onl Fonda and -5S are the sound coman for the t+o/+heelers 'ehicle +ho ro'iding a good roduct and ser'icing as comared to another one. And hence, both the comanies had catured maret a lot and are maing customer satisfaction as their ultimate goal.
&+! Are ou ha +ith the sales schemes ro'ided to ou Criteria Oes No
Re:?on1ent: "4 %
Per
Respondents
Yes 9o
Almost 87 are satisfied +ith the sales scheme ro'ided to them. -he coman al+as comes u +ith the monthl sales scheme and the customer gets attracted to e*tra benefit them going to get for long time through it.
INDINGS AND SUGGESTION
-he -5S @1 is successful in ro'iding a good ?ualit 'ehicle to customers. -he are also successful in achie'ing customer satisfaction.
Customers trust the brand -5S for best 'ehicle. -he Coman is ro'iding good ?ualit at affordable rice. -he roduct is also designed in attracti'e manner. -he coman should tae actions regarding the comlaints regarding ser'icing centers of -5S in order to satisf them.
CONC$USION
