A PROJECT REPORT ON “SALES AND PROMOTION” FOR TVS MOTOR COMPANY PVT LTD BY ARJUN R UNDER THE GUIDANCE OF PROF. HAMJE SUBMITTED TO SAVITRIBAI PHULE PUNE UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION THROUGH
ASM’S INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH CHINCHWAD PUNE - 4!"
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DECLARATION
I hereby declare that this project report titled as “A study of sales and promotions” of TVS motors has been prepared as a part of my academics for the partial fulfillment fulfillment of degree of “master of business Institute of administration ”, by savtribai phule university of pune under guidance of Prof. hemje of AS Institute business management and research.
To the best of my !no"ledge and belief the matter presented in this report h as not been submitted earlier for the a"ard of any other degree. This report is prepared by me on my o"n efforts.
A#$%& # 'A (#) S* )AT* + PA-* +
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Chapter No! " INROD#CTION$ INROD#CTION$ E%EC#TI&E '#((AR)
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Introdu*tion of mar+etin,-
ar!eting is both the Art as "ell as science. The management process through "hich goods and serices moe from concept to the customer. It includes the coordination of four elements called the / P0s of mar!eting+ i.
Identification, Selection and deelopment of a produ*t
ii.
)etermination of its pri*e
iii.
Selection of a distribution channel to reach the customer0s pla*e and
i.
)eelopment and implementation of a promotional strategy.
ar!eting is based on thin!ing about the business in terms of customer needs and satisfaction. ar!eting defers from selling because 1in the "ords of 2arard business School3s retired professor of mar!eting Theodore -. eaitt4” Selling concerns itself "ith the tric!s and techni5ues of getting people to e6change their cashfor your products. It is not concerned "ith the alue that the e6change is all about. And it does not, as mar!eting inariable does, ie" the entire business process as consisting of tightly integrated effort to discoer, create, arouse and satisfy customer needs.” In other "ords, mar!eting has less to do "ith getting customers to pay for your product as it does deeloping a demand for that product and fulfilling the customer3s needs. %ltimately, it ma!es more sense to thin!ing of "ays to benefit from creating customer alue in the most effectie "ay, subject to ethical and other constrains that one may hae. ar!eting usually inoles an e6change bet"een buyers and sellers or bet"een other parties. ar!eting has an impact on the firm, its suppliers, its customers, and other effected by the firm3s choices. ar!eting management is the broad scope of the study of mar!eting focusing on the practical application of the techni5ues and mar!eting actiities of a certain company or business. This business discipline encompasses mar!eting planning and strategy, orientations, and processes needed in attaining company goals by proiding alue to clients. Since it has a "ide coerage inoling all factors re5uired to satisfy customers, mar!eting management must be all7 perasie and part of eery employee3s scope of "or!, from the subordinates to those in higher management.
Definition of (ar+etin,-
“ar!eting is the beginning and end of all the business actiities 8 Philip 9otler” “ar!eting is the deliery of standard of liing to society 8 Paul asur” 5
De*idin, on the .romotion mi/ +
-ompanies face the tas! of distribution the total promotion budget oer the fie promotional tools+ •
Adertising
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Sales Promotion
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Public #elations and Publicity
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Sales :orce
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)irect ar!eting.
;hateer method a company adopts for promotion its product it must be from aboe mentioned method.
0hat is 'ales1
Promotion is the final element in the mar!eting mi6. After the nature of product is decided, its price fi6ed and the methods of distribution decided, the manufactures has to ta!e effectie steps in meeting the consumers in the mar!ets. In the present consumer oriented mar!ets it is the duty of manufactures to !no" "hat is re5uired by the consumer. It is also their duty to ma!e the customers !no" "here, "hen ho" and at "hat prices. The products "ould be aailable.
(eanin, Of .romotion-
The term promotion is the term and include mainly three type of sales actiity+ <. ass impersonal selling methods 1Adertising4. =. :ace to face personal selling 1salesman ship4. (. Actiities other than personal selling and adertising such as point of purchase display 1P.>.P4 sho" and e6hibition, demonstration and other non7securing selling efforts. This form of actiity is called ?Sales Promotion3.
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E%EC#TI&E '#((AR)
A Summer Internship Project is ital part of eery 'A program. It helps us to hae a real insight into corporate "orld. An internship also enables us to gear up for the career ahead of us. All the theory that "e hae learnt in our curriculum is put into practice during internship. I hae done my project on “SA*S A&) P#>>TI>&” "ith reference to TVS ->PA&@ PVT T).
Promotion is the final element in the mar!eting mi6. After the nature of product is decided, its price fi6ed and the methods of distribution decided, the manufactures has to ta!e effectie steps in meeting the consumers in mar!ets, In the present consumer oriented mar!ets it is the dut y of manufacturers to !no" "hat is re5uired by the consumer, It is also their duty to ma!e the customer !no" "here, "hen ho" and at "hat prices. The products "ould be aailable. The study "ould bring out ho" the product is going in a highly competitie mar!et "ith deferent promotional actiities. The topic includes that to study the sales promotion actiities used by TVS -ompany PVT T) for increasing the sales of otorcycles. The reason for selecting this topic is to get learning e6perience of automobile sector.
It contains all important and prominent function, sales promotion including distribution channel in particular. The study on motorcycle can gie a aluable learning about ho" to analyBe a product success or failure and according set action plans for its betterment. Also it "ould be a great opportunity for interacting "ith different !ind of people and get to !no" ho" actually the system runs. It "ould also a big idea for ta!ing a call to"ards satisfying customer needs, "hich is ultimately the prime objectie of any company and its employees.
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This project "as prepared during "or! of t"o months as Summer Internship Training Program in TVS -ompany PVT T) on topic “ST%)@ >: SA*S A&) P#>>TI>&” it is the sure y for the mar!eting strategies and promotional actiities of otorcycles.
REA'ON' 2OR 'ELECTIN3 T4E TO.IC
To gain practical !no"ledge along "ith mar!eting theory. To understand the challenges of the organiBation. To get the mar!et information. To became a"are of our strengths and "ea!ness as re5uired for potential manager. To understand mar!et situation.
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Chapter No! 5 IND#'TR) .RO2ILE
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5!" IND#'TR) .RO2ILE Automotive industry-
The automotive industry is a term that coers a "ide range of companies and organiBations inoled in the design, deelopment, manufacture, mar!eting, and selling of motor ehicles, to"ed ehicles, motorcycles and mopeds. It is one of the "orldCs most important economic sectors by reenue. The term automotive industry usually does not include industries dedicated to the maintenance of automobiles follo"ing deliery to the end7user, such as repair shops and motor fuelfilling stations. 4istory-
The automotie industry began in the
=FFE, "hen -hina too! the top spot "ith <(.D million units. 'y producing
0orld motor vehi*le produ*tion-
:or many decades, the %nited States led the "orld in total automobile production. In
Indian automobile se*tor-
The Indian automobile sector is one of its most ibrant industries. The industry accounts for == per cent of the countryCs manufacturing gross domestic product 1G)P4. It comprises passenger cars, t"o7"heelers, three7 "heelers and commercial ehicles and is currently the seenth7largest in the "orld "ith an aerage annual production of
In addition, "ith the goernmentCs bac!ing and a special focus on e6ports of small cars, multi7utility ehicles 1%Vs4, t"o and three7"heelers and auto components, the automotie sectorCs contribution to the G)P is e6pected to double, reaching a turnoer of %SM
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(ar+et si6e
The automobile industry produced a total of <,DK<,D/E ehicles including passenger ehicles, commercial ehicles, three7"heelers and t"o7"heelers in April =F
T"o7"heeler sales registered gro"th of <<.KJ percent in April =F
In April =F
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Top .layers in automotive industries in India- 7 "! 4ONDA- 7
5! 4ERO- 7
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8!9A:A:- 7
;!T&'- 7 14
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?!)A(A4A 15
5!5CO(.AN) .RO2ILE
Type
Public
Traded as
BSE: 532343,NSE: TVSMOTO R
Industry Predecessors
Automotive Sundaam ! "la#ton $imited Mo%ed &ivi'ion (ndia Moto "#cle' $imited 16
TVS ! Su)u*i $imited Founded
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Founders
Sundaam
Headquarters "/ennai, (ndia Number of locations
3 t0o 0/eele and + t/ee 0/eele %lant'
Key people
VenuSiniva'an 1"/aiman M&
Products
Motoc#cle', 'coote', t/ee! 0/eele ve/icle' and '%ae %at'
Revenue
--35 billion 1S6+2 billion 127+4
Profit
254 billion 1S63. million 127+4
Total assets
+74. billion1S6+87 million 127+4
Parent
Sundaam ! "la#ton $imited
Website
000tv'motoin
CO(.AN) .RO2ILE- 7 T&' (otor Company , the flagship company of the TVS Group, is India3s third largest
T"o7"heeler manufacturer and one among the top ten in the "orld. The TVS Group "as established bac! in
Today, TVS otor -ompany has,
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/ manufacturing plants 12osur in Tamil nadu, ysore in 9arnata!a, &alagarh in 2imachal Pradesh 8 India and 9erra"ang 7 Indonesia4
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Product offerings in all segments of the t"o7"heeler industry in India
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Product offerings for the three7"heeler industry in India
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ore than
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Products e6ported to more than HF countries "orld"ide
Leadin, from the front , the -hairman of TVS otor -ompany, r. VenuSriniasan, has "on many laurels
for the company. The most recent a"ards conferred on him, "hile being head of the -onfederation of Indian Industries include the 2onoris -ausa )octor of Science 1). Sc.4 for his outstanding contributions in the field of Nuality oement and anufacturing *6cellence, the distinguished ciilian honor ?>rder of )iplomatic Serice erit3 12eung7In edal4 conferred by the President of the #epublic of 9orea, 2is *6cellency ee yung7ba! in recognition of his aluable contribution in promoting 9orea7India bilateral relations and the prestigious honor by the President of Indian "ith the Padma Shri a"ard for his aluable and outstanding contributions in the field of Trade and Industry. The $#) Tata -orporate, The Star of Asia a"ard by 'usiness ;ee!, The $amshedji TATA ifetime Nuality Achieement A"ard, *merging -orporate Giant 7 Times 2arard 'usiness School Association are some of the other high7profile a"ards besto"ed on him.
The current product portfolio of the company comprise of motorcycles including TVS Star in the economy segment, TVS Apache #T# inperformance segment. TVS Scooty PepO, TVS Scooty Strea! ma!e up the scooterette segment "hile Super and 2eay )utyform the mopeds segment. The company recently launched India3s first clutch lessmotorcycle, TVS $ie along "ith an automatic metal bodied scooter TVS ;egoand TVS $upiter thereforeoffering consumers a comprehensie product portfolio.
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TVS otor -ompany is reno"ned for its human resource management. *mployees get e6posure to arious s!illdeelopmental aspects li!e -ross :unctional Teams 1-:T4, Superisory Improement Teams 1SIT4, and Nuality -ontrol -ircles 1N--4 among arious others. Specific care is ta!en toensure the creation and maintenance of an incomparable "or!ing enironment "ithemployee "elfare at the focal point.
As part of its ,lobal operations , TVS otor -ompany has international presence in more than HF countries
in Asian, Africanand atin American -ontinents and "ill enter more international mar!ets in due course. InIndia, the company functions through a strong net"or! of sales, serice, authoriBed sericecenters and other certified serice points.
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Chapter No!; RE'EARC4 (ET4ODOLO3)$ DATA ANAL)'I'
#esearch is an art of science inestigation through search for fe" facts in any branch of !no"ledge. It is a moement from !no"n to un!no"n
#esearch al"ays "ith the 5uestion or problem
It is purpose is to find ans"er to 5uestion through the application of scientific method
It is a systematic and intensie study directed to"ards a "or! complete !no"ledge of the subject studied
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As the mar!eting does not address itself the basic or fundamental 5uestion it doesn0t 5ualify as basis research on the contrary, it tac!les problems, "hich seems to hae immediate commercial potential. In ie" of major consideration, mar!eting research should be regarded as applied research, "e may also say that mar!eting research is both types problem soling and problem and oriented.
ar!eting research is a systematic and objectie study of the problems pertains to the mar!eting of goods and serices. It may be emphasiBed that it is not restricted to any particular area of mar!eting, but is applied to all the phase and aspects.
(ethods of Data *olle*tion- 7 "@ Data to be *olle*ted-
)ata includes facts and figures, "hich are re5uired to be collected to achiee the objecties of the projecting order to determine the present position and satisfaction of customer of TVS Automobiles.
A! .RI(AR) DATA-
The data is being collected for the first time or to particularly fulfil the objecties or the project is !no"n as primary data. The primary data "ere collected through response of consumer "as conducted through the 5uestionnaires prepared for them by face to face interaction.
9! 'ECONDAR) DATA-
This dataare the types of data "hich are already assembled and needs not to collected from outside. This type of data "ere+ I. II. III.
-ompany profile Product profile -ompetitors profile
The aforesaid data "ere collected through internet and company0s financial report.
5@ Data *olle*tion method-
:or gien project the primary data, "hich needed to collect for the first time, "here much significant. This type of information gathered through surey techni5ues, "hich is the most popular and effectie 21
techni5ue for collection. The surey "as completed "ith use of 5uestionnaires by face to face interaction.
8@ 'amplin,-
Sample is the small group ta!en under consideration from the total group. This small group represent the total group in the project the mar!et research, "hich "as as! to be studied in mar!et area but as it "as possible to approach all the respondents customer of the city, hence a sample "as selected "hich represent the "hole city. The area selected for the sample is present further in the appendi6. Sample siBe of customer list "as ta!en from TVS Automobile customer data basic.
;@ Data evaluation-
The data so collected "ere not simply accepted because it contained unnecessary information and oer or under emphasiBed facts. Therefore only reerent data "ere included in the report "hich helps in achieing the objectie of the project.
<@ '!0!O!T analysis-
According to the surey "e hae done, "e found that there are some strong points about TVS group as "ell as some fla"s in there "or!ing fashion. ;e "ould present it to you by the S;>T analysis as follo"s+7
'TREN3T4'-7
Nuality product
Target oriented staff
Good "or!ing enironment
Proper implementation of TP policy
Tie7ups "ith foreign companies
0EA>NE''E'-7 22
ac! of thin!ing beyond the mar!et
ac! of mar!eting aftermar!et
ac! of adertisement
O..ORT#NITIE'-7
-an launch arious categories of product in Scooty pep.
ots of room in sales improement of =7"heeler
-an capture "hole mar!et as the competitors are lac!ing in lo" price "ith high 5uality for =7"heeler
-an tie7up "ith /7"heeler manufacturing company for >.*. products.
T4REAT'-7
&eglecting small machine shop "ill be beneficial for competitors to oercome our 5uality products sale. In /7"heeler small the only reason "hy customer "ill purchase our product is series proided to themQ other"ise big industries "ill through us out of the competition.
Resear*h Instrument-7 :or this purpose Nuestionnaire >bseration has been used astool.
Conta*t (ethod- 7 )irect surey of the employees and 5uestionnaire for the customers.
'amplin, 'i6e- 7 'amplin, Area-7 I!
" employees 5 *ustomers TVS motor 1P-- Area4
Does T&' adopt the sales promotion te*hniBues1
Table No!-7 "
@es+ 7 DH &o+ 7
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3raph No!- 7 "
P#$%O'$( A)'*'+ No; 15%
Yes; 85%
Interpretation-
According to surey it is found that TVS 1DH4 Adopt Promotion actiity and 1
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0hi*h type of sales promotion te*hniBue adopted by T&'1
Table No!-7 5
Promotion Techni5ues )iscounts -oupons :ree Gifts >thers
In KF =F
3raph No- 7 5
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P#$%$&'$( T,)-('./,0
Interpretation-
According to surey used Sales and promotion Techni5ues by TVS that 1DF4 respondent used discount techni5ue 1=F4 used coupons techni5ue 1
III!
4o lon, one te*hniBues is used by T&' motors1
Table No!-7 8
Time < ;ee! < ;ee! To
KF =F
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Chapter No!< 26
2LO0 C4ART' $ DIA3RA('
T&' to heelers- 7
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"! 0E3O- 7
5! :#.ITER- 7
8! 'COOT) .E. - 7
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;! A.AC4E- 7
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?! 'TAR CIT) - 7
! 'TAR '.ORT- 7
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F! T&' %L 4EA&) D#T)- 7
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Comparison beteen :upiter $A*tiva- 7
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Comparison beteen T&' 'tar 'port $ 9A:A: Dis*over G" **@- 7
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Chapter No! CONTRI9#TINON TO T4E 4O'T OR3ANI=ATION
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O9'ER&ATION
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In the future TVS motor -ompany "ill be the top =7"heeler company in India and one among the top fie =7"heeler company in Asia. In current mar!ets scenario, respondents gie ma6imum no. of "eightage to price the after they consider mileage and colors respectiely.
The study sho"s that more no. of respondents hae connected as sources of income from agriculture. The study sho"s that H< respondents are already user of TVS motorcycle. So TVS is popular Automobile -ompany in study region.
LI(ITATION' 37
This research conducted on a ery small sample siBe, so it might be possible that the information gien by such respondents may not match "ith the replay of total customer aailable in the TVS at that time. •
The limitation of the study "as about time.
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It might be possible that the ans"ers gien by the respondents are full of biasness.
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As there are t"o types of respondents so there is difference bet"een the responses to"ards the sales promotion tools aail by both them "hich become a constraint to"ards the research project. The number of respondents coered by me can0t gie appropriate results rather can proide some ideas. Sometimes respondents not interested.
CONCL#'ION 38
The research project "as good e6perience in t"o months. It enables to come the different opinion of the customer about the TVS motors.TVS motors ta!ing many opinions from the customer they utiliBe all the opinion in ne" production.-ompany should design ne" and attractie offers as "ell as policies such as "arranty so as it is helpful in promotion process.In the conte6t of price, 5uality, serice bac! up, maintenance and safety. It "as possible to understand the leel of customer satisfaction factors.Promotion actiities ery useful to !no" all information about product at TVS.TVS motors price is n ot ery high compare to the competitor product so eeryone can buy as per hisLher need.
TVS ta!ing care of his customer or delight the customers "ith its product 5uality.TVS should try to enhance its post7sale serice as preentie measure for ma6imiBing the satisfaction leel.The preentie measure maintenance should be monitored on regular basis to maintain the brand image in mar!et, so that it competes "ith the competitors in the mar!et.ost of the respondents are satisfied "ith the serices of Saibaba TVS motors.ess labor charge and serice in time an d increase in number of serice station they are three major parameters in demand.The sale of Scooty and ;ego and $upiter are high as compared other ehicles.
'#33E'TION' 39
-ustomer0s feedbac! should be ta!en in a better "ay.
>ffers "hich are proided by company to the customers should be same for eeryone.
There should be more emphasis gien by the company for satisfying the customer up to an ape6 limit by proiding the utility of eery penny of his money.
The company can communicate deelop stronger customer bonding by proiding social financial benefits.
The company should be fle6ible to bend its rules procedures in the client0s faors.
Should increase the strengths of customer relationship management department by hiring the component employee.
There should be more use of information technology.
To fulfill the needs of the respondents Saibaba TVS should set ne" branches near P-Area, to reach the ma6imum number customer.
To !no" the problems faced by the customers at the time of post7sale serice should conduct free chec!up camps and collect the feedbac! of at the time of serice.
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Chapter No!F RE2ERENCE'
9iblio,raphy-7 9oo+s
Philip 9otler, =FFD, “ar!eting anagement” <(thedition, Pearson *ducation, 9eller, 9oshy. 41
-.#.9othari, =F<<, “#esearch ethodology” =nd edition, &e" Age International Publishers.
George *'elchichael, Kth #eie"ed *dition Published by cGra"72ill 2igher *ducation.
0eb sites
""".ts.co.in
""".Indian=;.com
"""."i!ipedia.com
""".businessline.com
""".google.co.in
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ANNE%#RE
Huestionnaire C#'TO(ER .ER'ONAL IN2OR(ATION-7
A. &ame+ 7 '. Address+7
-. -ontact no.+7 ). Gender+7 ale L :emale 43
*. Age1in year4+7
=< to =H 1 4
=K to (F 1 4
(< to (H 1 4
(K to /F 1 4
/< Aboe 1 4
:. >ccupation+7 Agriculture 1 Students 1
4
'usinessman 1
4
4
Professional 1 4
>thers 1 4 G. onthly income+7 HFFF 1
4
HFFF7
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<. ;hich model do you hae from TVS GroupR
=. )id sales person spend sufficient time "ith you and e6plain eerything about the ehicleR @es+7 &o+7
(. ;as the ehicle deliered on promised timeR @es+7 &o+7 44
/. ;ere you offered a test drie during your isit to our sho"roomR @es+7 &o+7 H. 2o" do you feel about TVS t"o "heeler ehiclesR *6cellence+7 Good+7 oderate+7 Satisfactory+7 %nsatisfactory+7 K. According to you "hich promotion actiities is most effectie for TVSR Advertisement Nespaper 'ellin, J. ;ould you prefer to follo" promotion actiities used by the competitorsR
@es+7 &o+7 D. ;hat !ind of support serices proide you proide your customersR
Information Transport -redit facilities After7sales serices Guarantee and others
E. ;hich of the follo"ing promotion actiities should adopted by your companyR
*6hibition *6change offer )iscount Gift ouchers
