Swapnil Final
Swapnil Final
Swapnil Final
PROJECT REPORT
ON
2016-2018
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
BATCH 2016-2018
DECLARATION
I hereby declare that the project report entitled “A Study on customer relationship and
promotional activity at TVS Motors” is an independent analysis work carried out by me as a
part of MBA curriculum, university of Pune, under the guidance of Prof Prapti dhanashetti
This project was undertaken as a part of academic curriculum according to the university rules
and norms and had no commercial interest and motive. It is my original work. It is not submitted
to any other organization for any other purpose.
Place:
relationship and promotional activity at TVS Motors” I take this opportunity to express my
SAMARTHA TVS for giving me the opportunities and helping me for completing my project
I sincerely thank my esteemed guideProf. PRAPTI DHANSHETTI his valuable guidance and
co-operation rendered to me throughout the project report. It would not have been possible for
I give my thanks to all friends & SKNSSBN for their valuable contribution, co-operation and
1 Executive Summary
2 Introduction
3 Industry profile
4
Company Profile
5 Theoretical Background
6 Research Methodology
7 Data Analysis
9 References
10 Annexure
Chapter No. 1
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The project was undertaken to study on the consumer perception and effectiveness
of Sales Promotion activity individually and to evaluate their impact on the customer
buying preference towards the two wheelers of TVS Motor Company.
Now coming to the initial weeks of the project was purely survey and collection of
data from many institutional customers, so as to get to know where exactly the product is
standing in the market currently, collection of the up-to –date data and material from
numerous sources and areas consumed considerable time and involved regular efforts.
The data collected from two sources such as Primary data and Secondary data.
Primary data is collected directly from each and every customer with the help of
questionnaires and unstructured interview. Secondary data was collected from various
business newspapers, websites journal and various magazines. Sample of 176 respondents
chosen as a simple random method.
The analysis of the data obtained had been done by using the Bar Diagrams, Pie
chart and on the basis of this at the end of the report a trail has been made to suggest
certain steps that may help the company in reducing the constraints and thereby it can help
identify and increases or enhance the customer satisfaction level.
This research will be helpful to make decisions on which sales promotion tool
should be given more attention and which not. Depending on the research carried out the
affectivity of each and individual tool used by TVS Motor can be understood. The research
also suggests that there should be the continuous improvement and changes in the sales
promotion strategies as per the customer response. This will act as a tool for the company
officials to know their threats and opportunities in the market.
The company taken various types of promotional activities so as to improve their sales
and services. The promotional activities mainly are canopies, tagging and direct marketing
activities etc. To study the post sales service performance. Just analyses the market position of
TVS Motors and making improvement in that position. To know the customer satisfaction level
towards services of various TVS Motors bikes/scooter distributors..To know the problems
presently faced by the customers at distributors place. To know the new area of improvement.
Chapter No.2
INTRODUCTION
ADVERTISMENT & SALES PROMOTION
INTRODUCTION
The Automobile industry in India is expanding at large extent, with the income sources
and level of income increase; people are tending to purchase the thing like car which is
considered as a Luxury at some time ago. The market has become very competitive due to this
reason and availability of variety of products in market.
At this point of time, promotion is the most important and effective tool to get market
advantage and to have company in limelight. 75% of sales depend on the effectiveness of
advertisement & sales promotional activities undertaken by the company.
Now day’s companies are trying to find out ‘n’ number of ways to attract people towards
their product and convert their desire of purchase to actual purchase. While promoting their
products and services, they keep in mind various aspects like time and place of advertising &
sales promotion, the segment to target, the extent of market to penetrate and level of promotional
activities.
DEFINITION OF ADVERTISING
The American Marketing Association, Chicago, has defined advertising as “any paid
form of non-personal presentation of promotion of ideas, goods or services, by an identified
sponsor.”
Advertising is only one element of the promotion mix, but it often considered prominent
in the overall marketing mix design. Advertising is the dissemination of information by non-
personal means through paid media where the source is the sponsoring organization.
SCOPE
The project title “A Study on customer relationship and promotional activity at TVS
Motors” in pune market via Samarth tvs. has a scope which is limited to Pune city. The other
regions are not covered under this study.
Chapter No. 3
INDUSTRY PROFILE
TWO WHEELER AUTOMOTIVE INDUSTRY IN INDIA
TVS MOTOR:-
The name of the company was changed from Hero Honda Motors Limited to Hero
MotoCorp on 29 July 2011. The new brand identity and logo of Hero MotoCorp were
developed by the British firm Wolff Olins. Hero MotoCorp now export to Latin America,
Africa and West Asia. The company has sold over 47 million two wheelers since its
inception in 1984 till March 2013. It sold 6.07 million 2-wheelers in 2012, out of which 5.5
million were motorcycles.
BAJAJ AUTO:-
It is an Indian two wheeler and three wheeler manufacturing company. Bajaj Auto
manufactures and sells motorcycles, scooters and auto rickshaws. They sold a total of 2,
46,828 motorcycles in July 2013, down by 20% from 3, 08,858 in July 2012. For April-
July 2013, motorcycle sales fell to 11, 06,878 units, 14% lower than 12, 91,481 units in the
same period last year.
Today, we operate in key industries that drive economic growth and cherish our
leadership positions in tractors, utility vehicles, and information technology and vacation
ownership. We also have great presence in aerospace, agribusiness, automotive,
components, consulting services, defense, energy, financial services, industrial equipment,
logistics, real estate, retail.
SWOT Analysis of Indian Motorbike Industry :
STRENGTHS WEAKNESSES
Rise in the working and middle class High interest rate and overhead level
Increasing demand for European quality other Asian States such as China
OPPORTUNITIES THREATS
COMPANY PROFILE
COMPANY PROFILE
Type Public
Industry Automotive
Predecessor
• India Motor Cycles Limited
Founded 1979
Website www.tvsmotor.in
TVS 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 Rs.10,098
Cr in 2014-2015, and is the flagship company of the USD 7.29 billion TVS
Group.A Bike For Any one.
TVS- COMPANY STRUCTURE
TVS Motor
Company
Subsidiaries
PLANTS:-
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.
The art of delivering innovative and inspired technology at great value. Where the
style and technology meet to creat fuel efficient vehicles that also deliver better
environment performance that is Technodynamism to them. There R&D is a well qualified
team of engineers who work diligently to provide value solutions for present day
challenges. 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.
The TVS Group has always been inspired by a century long mission and vision of
its own destiny. It is not just a business but a way of doing business. Which Sets TVS
Apart from other. Back in 1911, to the founder of the company, the ordinary ambitions of a
bus fleet operator or a vehicle servicing business would not suffice. Rather, he wanted to
create an enduring business led by a family of likeminded.
TVS is India’s most trusted brand in the TWO wheeler category Source:
economic Ties most trusted brand.
\
EXPORT:-
TVS Motor Company has been awarded 'Star Performer - Silver Shield' in
two/three wheelers category, by EEPC India, for excellent export performance for year
2007-08.
LEADERSHIP:-
Star of Asia Award to Mr. Venu Srinivasan. CMID TVS Motors Company by
Business Week International.
Mr. Venu Srinivasan was conferred with the prestigious JRD TATA corporate
Leadership Award for the year 2004.
Theoretical Background
TASK UNDERTAKEN
STATEMENT OF PROBLEM
Though the Two wheeler automotive sector is going to be among the fastest
growing sector in India. In such situation one has to take into account the spending of these
manufacturers for their marketing activities. In the growing phase of the industry if TVS or
any other market leader in this sector has to increase the sales they have to use various
innovative sales promotion tools to push their product to the customer. The cost of sales
promotion is as high as 70% as the marketing communication budget of the company.
Also check the satisfaction level of customers. They are also satisfied with our
product or not. About services provided by company/dealer and about the quality of the
product as well as performance of product. Mileage of product or consider all features of
product. To proper evaluate.
TASK UNDERTAKEN BY ME :-
1. Product Training –
The product training was provided by sales executive staff of the showroom for the product
features and their specifications. I came to know the technical specifications of all the two
wheeler bikes and scooty. It was very important to get the product training because unless and
until you don’t have product knowledge, you can’t sell or promote the product in the market. The
training includes:-
2. Leaflet Distribution/Tagging –
Distribution of Leaflet which contain product information, Scheme, Address, Contact Number
and Tagging is process to tag the vehicle in the parking with TVS Sticker with latest scheme and
offers.
3. Rally–
The objective of the rally was to create awareness and attracting people from different areas of
Pune. The rally was concluded by the group of trainees wearing TVS T-Shirt, Flaunting TVS
Bikes and Scooty in different areas along with distributing TVS Folders.
5. Direct marketing–
The task of Direct marketing was really interesting. We visited various places like Hospitals/
Commercial Shop Owners/ Banks/ Medical Shops/ and directly approached to many Individuals.
Our main task is to create awareness among people about our product and to make adifference
about how we are better than competitor and what gives us competitive edge over competitiors.
Very few of the selected Trainee got the chance to do personal selling at the showroom,
where I was one out of them. I got the task to sell the product in showroom. It was direct
interaction with the customers coming in the showroom. I have to personally interact with the
customer so as to understand their requirements and according to which I was suppose to sell the
suitable product.
7.Tie up with Motor Driving School and Garages–
In this task we have to approach different motor driving schools and garages to inform
them about good schemes and incentive plans. If any customer referred by them buys the
vehicle he will get a commission of Rs. 800 for per Bike orScooty.
a) Enquiry handling
b) Product demonstration
c) Offering test rides
d) Providing quotations
e) Booking
f) Exchange
A cold Calling was done from the generated enquires to know the customer consideration
and non-consideration points towards TVS vehicle. In this task the data was provided by the
authorities and I have to note down the feedback.
Chapter No. 6
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
WHAT IS RESEARCH?
This research will be helpful to make decisions on which sales promotion tool
should be given more attention and which not. Depending on the research carried out the
affectivity of each and individual tool used by TVS Motor can be understood. The research
also suggests that there should be the continuous improvement and changes in the sales
promotion strategies as per the customer response. This will act as a tool for the company
officials to know their threats and opportunities in the market.
The research is limited to the Pune City only. It only focuses on the sales promotion
tools being used by TVS Motor in Pune City so other factors like availability of vehicles at
the dealer’s place, easy payment options for buying, etc. are not covered in this report.
The project is based on the date collected from latest customers of TVS Motor
Company and thereby analyzing and recording their views about present strategies adopted
by the company.
Secondary data is data collected by someone other than the user. Secondary data
analysis saves time that would otherwise be spend collecting data and particularly in the
case of quantitative data, provides larger and higher quality databases that would be be
unfeasible for any individual researcher to collect on their own.
SAMPLING:-
The sample method involves taking a representative selection of the population and
using the data collected as research information. A sample is a “subgroup of a population”.
It has also been described as a representative “taste” of a group. The sample should be
“representative in the sense that each sampled unit will represent the characteristics of a
known number of units in the population”. All disciplines conduct research using sampling
of the population as a method, and the definition is standard across these disciplines. Only
the creative description of sampling changes for purposes of creating understanding. The
standard definition always includes the ability of the research to select a portion of the
population that is truly representative of said population.
Types-
Probability Sampling-
There are four types of probability sampling that are standard across disciplines. These
four include simple random sampling, systematic random sampling, stratified random
sampling, and cluster sampling .
Simple random sampling is often called straight random sampling. Simple random
sampling requires that each member of the population have an equal chance of being
selected (as is the main goal of probability sampling). A simple random sample is selected
by assigning a number to each member in the population list and then “use a random
number table to draw out the members of the sample”.
Cluster Sampling
Cluster sampling, on the surface, is very similar to stratified sampling in that “survey
population members are divided into unique, non over lapping groups prior to sampling”.
These groups are referred to as clusters instead of strata because they are “naturally
occurring groupings such as schools, households, or geographic units”.
Non-probability Sampling -
Convenience
Convenience sampling includes participants who are readily available and agree to
participate in a study. MacNealy indicates that convenience sampling is often called
accidental, while Frey agree with the alternate title of accidental but also include haphazard
as an alternate title. Babbie does not use the specific title of convenience, but calls this
same type of non-probability sample “reliance on available subjects”.
Purposive
Snowball
Snowball sampling is also called as “network” sampling. The definitions are the same.
Snowball sampling is used “in those rare cases when the population of interest cannot be
identified other than by someone who knows that a certain person has the necessary
experience or characteristics to be included”
Quota
It is define it as dividing the “population group being studied into subgroups. Then
based on the proportions of the subgroups needed for the final sample, interviewers are
given a number of units from each subgroup that they are to select and interview”
QUESTIONNAIRE DESIGN:-
Structured Undisguised questionnaire was used in the study for the purpose of data
Collection. Both close-end and open-end questions are used in this questionnaire because
the statement of alternatives in the close –end questions allows the respondent in recalling
and formulating the answer and in the open –end questions the respondents has got the
freedom to express his views in his own words pertaining to any aspect of the issue raised.
SAMPLE SIZE:-
176 Respondents SAMPLING UNIT – Customers who most recently bought TVS
Motor’s two wheeler automotive vehicle. The sampling technique used in this research is
non probability convenience sampling.
RESEARCH AREA:-
The Survey was carried out by interviewing customers who bought TVS’s vehicle
from THE SHELAR TVS (Authorized distributor).
Chapter No. 7
Sales
1%
3%
8%
12%
Apache RTR
5%
Phoenix
Star
Wego
24% Jupiter
Scooty Pep+
47%
Heavy Duty XL
Apache RTR 13
Phoenix 5
Star City + 9
Sport 8
Wego 40
Jupiter 79
Scooty Pep+ 20
Heavy Duty
2
XL
Total 176
Interpretation:-
Above question shows the no. of sample units who own various vehicles of TVS
motors as per the data collected the 79 customers are having Jupiter, 40 having
Wego, 20 having scooty pep+. So the 50% of the total customers are having
Jupiter and other 50% having other vehicles. So customers are more preferring
Jupiter.
Factors consider while choosing the two wheeler
Total Respondent-176
Colour
13% 16%
Cost
Ease Of Maintenance
15%
Good Features
28%
1% Good Mileage
1%
Power
26% Look & Style
Color 27
Cost 27
Ease Of Maintenance 2
Good Features 2
Good Mileage 46
Power 49
Look & Style 23
Total 176
Interpretation:-
The above graph shows the number of what features you consider while you
purchase in the total persons Good mileage by 46, and Cost by 27 and Ease of
maintenance by 2, Look and Style by 23, Good features by 2, and Power by 49. It
shows that customers looking for good mileage.
Analysis of satisfaction towards vehicle mileage
Total Respondent-176
Highly Dissatisfied 9
Dissatisfied 15
Satisfied 91
Highly Satisfied 35
0 20 40 60 80 100
Highly Satisfied 35
Satisfied 91
Neither Satisfied Nor
Dissatisfied 26
Dissatisfied 15
Highly Dissatisfied 9
Total 176
Interpretation:
The above graph shows the number of people who satisfied with
mileage of the vehicle in the total respondents response given by customers. From
the total respondent 91 are satisfied, 35 highly satisfied and 26 are neither
satisfied nor dissatisfied. So most of the customers are satisfied with the mileage
of TVS vehicles.
Analysis of customer service
Total Respondent-176
60
40
39 51
20 54
0
16
Very 16
Good Good
Average
Poor
Very
Poor
Very Good 39
Good 51
Average 54
Poor 16
Very Poor 16
Total 176
Interpretation:-
The above graph shows the Maximum number of customer who average
satisfied with customer services of the TVS Motors in the total respondent’s
response given by customer and remaining satisfaction level shows by graph.
Analysis of delivery time
Delivery time
180
160
140 159
120
100
80
60
40 17
20
0
Yes No
Yes No Total
159 17 176
Interpretation:-
The above graph shows the number of customers who receive the product
on delivery time is yes by 159 customers and no by 17 customers. The most of the
customers are getting delivery of vehicle on time.
Analysis of satisfaction towards after sale service
Total Respondent-176
Highly Dissatisfied 9
Dissatisfied 14
Neither Satisfied Nor Dissatisfied 28
Satisfied 95
Highly Satisfied 30
0 10 20 30 40 50 60 70 80 90 100
Highly Satisfied 30
Satisfied 95
Neither Satisfied Nor Dissatisfied 28
Dissatisfied 14
Highly Dissatisfied 9
Total 176
Interpretation:-
The number of customers who satisfied/not satisfied with the after sales
service of the company from a number of 176 customers. Highly satisfied 30,
Satisfied 95, Neither Satisfied Nor Dissatisfied 28, Dissatisfied 14 and Highly
Dissatisfied 09. So from this we can say that the customers are satisfied with the
after sales service of the company.
Test-drive of the vehicle before buying
Total Respondent-176
No 36
Yes
140
0
50
100
150
Yes No Total
140 36 176
Interpretation:-
The above graph shows the number of customers who were offered test
drive for the product is yes by 140 customers and no by 36 customers. The test
drive is offered to customers in the showrooms when they comes for
demonstrations of the vehicle.
Satisfaction towards usage of Bike / Scooter and Analysis of buying .
preferences of customers in near future.
Total Respondent-176
140
120
100
80
60
40
20
0
Neither
Satisfied/Definite Dissatisfied/Defi
Highly satisfied satisfied/Nor
ly nitely not
dissatisfied
Usage 31 94 29 15
Preferences 116 21
Highly Satisfied 31
Satisfied 94
Neither Satisfied Nor Dissatisfied 29
Dissatisfied 15
Highly Dissatisfied 7
Total 176
Definitely 116
Definitely Not 21
Might be 39
Total 176
Interpretation:-
Total Respondent-176
160
140
120
100
80
139
60
40
20 37
0
Satisfied Not satisfied
Interpretation:-
The above graph shows the consumer’s experience at show room the number of customers
who feel satisfied is 139 and who feels not satisfied is 37. So the showrooms of TVS
Motors are giving good service as per the graph.
Recommendation of TVS product
Total Respondent-176
No 50
Yes
126
0
50
100
150
Yes No Total
126 50 176
Interpretation:-
The above graph shows the number of people who recommend TVS Two
Wheelers in the total persons yes by 126 and No by 50. So the 126 respondents
are recommending TVS vehicles to others from the 176 respondents.
Analysis of various promotional activities
Sales
28% 22%
Canopy activity
Loan schemes
11% 23% Garage activity
Interpretation:-
The percentage of the customers who purchased TVS vehicles because of some of
the promotional activities done by TVS Motors is shown in the graph. The
canopies activities done by TVS Motors on various locations is given 22% sales
from total sale, special loan scheme given 23%, garage activity and pamphlets
16%, TVS vehicle rally with tagging 11% and very effective direct marketing is
around 28% in total sales of TVS bikes and scooters.
Analysis of improvement in sales promotional activities
Total Respondent-176
160
140
120
100
80
139
60
40
20 37
0
Yes No
Yes No Total
37 139 176
Interpretation:-
The main purpose of TVS Motors is to improve their sales and services. So the
promotional activities like canopies,tagging,rallys,petrol pump,garage scheme and direct
marketing are mainly build for the improvement in enquiries and sales of TVS Motors
bikes/scooters. We are started with the canopy activity. The first canopy we placed near
DSK city because most of the families are staying there so the rout of going home, office,
school or college is same. So it will help us to improve the enquiries and sales of TVS
Motors bikes/scooters. The peoples are coming for enquiries getting knowledge of TVS
bikes/scooters they are taking quotations, rides and product pamphlets. We are giving
enquiries to distributors at least 7-8 per day and the booking around 2-3 per day. This
activity created the awareness of TVS Motors bikes/scooters in the peoples of DSK city
and near that area.
After this activity the Samarth TVS Narhe showroom is given under my team. So the
activities we are going to implement is for Samarth TVS. The main problem is of Samarth
TVS is that it is a new showroom of TVS Narhe so the peoples are not aware about this
showroom so they are buying the TVS bikes/scooters from other showrooms. So we started
distributing the pamphletes of showrooms with the bikes/scooters information brouchers
near Narhe area to make peoples aware about the showroom. We started going to shops,
societies and classes to show the presence of TVS showroom in Narhe and make them to
buy the bikes/scooters from the Samarth showroom.
Tagging activity-
The next we started with tagging activity. The TVS Motors provided us a tags of
various bikes/scooters with the information like price, schemes, average and features. So it
will help peoples to understand the benefits of TVS Motors bikes/scooters. So we done this
activity at D-Mart, Abhiruchi mall and Khadak vasla area because most of the peoples visit
this places. This activity brings most of the peoples at the showroom.
The petrol pump activity is the most important activity. We choose the Bharat
Petrolium near the Navale bridge because it is near to Samarth showroom and having
maximum number of peoples come there to fill the petrol. So we distributed the scheme
pamphlets of Bikes/scooters to the peoples who are coming to petrol pumps. So to
reach the scheme on bikes/scooter to the maximum number of peoples. The enquries
increased day by day when we started the petrol pump activity. We started giving them
demos and test drives at petrol pump.
Then we started giving the garage scheme that means if garage owner send the
customer to showroom of TVS and that customer buys the TVS bike/scooter then the
garage owner will get the commission for recommending the TVS bike/scooter. So as to
increase the sales volume. Then we have done the Jupiter and Star City + rallys in various
areas in Pune. The main focus of this rally is to increase the sale of the Jupiter and Star city
bike/scooter. With this rallys we also done the tagging and direct marketing. We travel to
all showrooms of TVS Motors to increase the awareness for TVS bike/scooter in Pune.
Consideration/Non consideration-
Then the consideration non-consideration work. The Shelar TVS Distributor of TVS
bikes/scooters provided us the invoice of customers who have taken the TVS bike/scooter
and also the information of the customers who are visited the showroom but not taken the
TVS bikes/scooter taken other companies bike/scooter. So our work is to call them and ask
them questions like if the customer is having TVS bike/scooter then why he/she has taken
the TVS bike/scooter? What he/she like about the bike/scooter? How was the service? If
the customer is not taken the TVS bike/scooter just had enquiry in the showroom and taken
other companies bike/scooter. Then why he taken that product so we ask questions like.
What you like about that bike/scooter? How was the service they are giving? Why not TVS
bike/scooter?. The information we are taken is very much helpful for the TVS Motors and
distributors that in which think we are lacking so what should we have to do.
Increase in sales-
From all of this activities we are also done the direct marketing in showroom like
handling the customers at the showroom giving test drive and information related to the
loans. So after all this activities the sale and service quality is increased for TVS
bike/scooter. The Samarth showroom who having the sale of 30-40 bikes/scooters in April-
May it increase to the 65-70 in June. The enquiries became 10-15 daily. The all activities
like canopy, rally, tagging, pamphlets, garage scheme, petrol pump and direct marketing
contributed for the improvement in sales and services.
Chapter No.9
References
WEBSITE REFERRED:-
http://www.tvsmotor.in/
http://business.mapsofindia.com/automobile/
http://en.wikipedia.org/wiki/Automobile_industry_in_India
Books refered-
QUESTIONNAIRE
Customer Details: -
NAME :
ADDRESS :
CONTACT NO :
OCCUPATION :
1) From which of the following Advertisement medium of Maruti Suzuki you are
aware?
a) Television d) Hoardings
b) Magazines e) Internet
c) Newspaper
2) According to you which is the most effective medium of the Advertisement?
a) Television d) Hoardings
b) Magazines e) Internet
c) Newspaper
3) Does advertisement provide you required information regarding
company/Product?
a) YES b) NO
8) How the sales promotional offers are importance while purchasing Maruti Cars?
a) Most Important c) Less Important
b) Important d) Not Important
9) If you are getting an attractive sales promotional offer from some other brand than
the brand which you are planning to purchase, will you go for the other brand?
a) YES b) NO
10) Pleaser rate the sales promotion offers used by Maruti Suzuki
5 4 3 2 1
Excellent Very Good Good Poor Very Poor
12) Will you postpone your buying decision in anticipation of getting a good
promotional offer from company?
a) YES b) NO
Price 1 2 3 4 5
Price
Packs(Discounts)
Discount on
Accessories
Gift Hamper
Product Warranties
Coupons
Exchange Scheme
Chapter No. 10
Annexure