Term Report SMM - TVS

7/30/2019 Term Report SMM - TVS

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IQRA UNIVERSITY IU

Racing past the BarriersThe Success of the Apache Motorcycle in India

Submitted To: Mr. Ahsan Durrani

Submitted By:

Ahsan Waseem (7022)

Muhammad Imran (5021)

Mehmood Sufiyan (3934)

Irfan ul Haq (6946)



Contents

1. Introduction and history of company

2. Scope of Indian Market before 1990 and after 1990.

3. Characteristics of the market in India?

4. Market Change in India

5. Role of Market Segmentation and Effects of Porter Forces on Company’s Brand

6. Qualitative research and quantitative research

7. The Need Scope System. Marketing Model and Archetypal framework

8. Problems Faced by TVS company facing in marketing its two wheelers

9.

Needs identified thorough identified through quantitative research.

10. Overall Market Image of TVS



Company History

TVS MOTOR COMPANY

The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar . As one of India’s largest industrial entities it

epitomizes Trust, Value and Service. It all began way back in 1984 when Sundaram Clayton Limited (A TVS Groupcompany) introduced its 50 CC mopeds in the arena of road racing, notching up unbelievable speeds of 105 kmph. Since

then, there has been no looking back for TVS Motor Company. TVS Racing was established in 1987 with the objective of

improving the performance of its bikes. Over the years it has provided valuable data, design inputs, development of

reliable motorcycle models, excellent vehicle dynamics & handling etc. The true evidence of it is seen in today's TVS

Victor and TVS Fiero. 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.

With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers,

auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercia

vehicles passenger cars, finance and insurance.

TVS Motor Company Limited, the flagship company of the USD 2.2 billion TVS Group, is the third largest two-wheeler

manufacturer in India and among the top ten in the world, with an annual turnover of over USD 650 million.

The year 1980 is one to be remembered for the Indian two-wheeler industry, with the roll out of TVS 50, India's first two

seater moped that ushered in an era of affordable personal transportation. For the Indian Automobile sector, it was a

breakthrough to be etched in history. TVS Motor Company is the first two-wheeler manufacturer in the world to be

honoured with the hallmark of Japanese Quality – The Deming Prize for Total Quality Management.

MANY FIRSTS TO THE AUTOMOTIVE INDUSTRY IN INDIA

TVS has been at the forefront in bringing a revolution in the way personal commutation

was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use

moped for the middle class in India in the 1980s to launching 7 new bikes in a single day

(first time in the history of the automotive industry in the world), TVS has often taken the

unbeaten path to innovation. Ushering in the personal transportation revolution

1980 Launched TVS 50, India's first 2 seater 50

cc moped

1984 First Indian company to introduce 100 cc

Indo - Japanese motorcycles

1994 Launched India's First indigenous

scooterette (sub - 100 cc variomatic) - TVSScooty

1996 Introduced India's first catalytic converter

enabled motorcycle, the 110 cc Shogun

1997 Introduced India's first 5 speed motorcycle,

Shaolin

2000 Launched India's first 150 cc, 4 stroke

motorcycle - The Fiero



2001 Launched India's first fully indigenously

designed and manufactured motorcycle.

2004 Launched the revolutionary VT-I engine for

the best in class mileage in TVS Centra

2006 Launched TVS Apache - first bike to win 6

awards in a row

2007 Apache RTR - first two wheeler in India to

have racing inspired engine and features.

2008 TVS Flame, TVS Scooty Electric Vehicle and

Three wheeler TVS King launched.

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.

TVS Group CompaniesSundaram Brake Linings

Sundaram Fastners

Southern Roadways

Sundaram Finance

Sundharams Private Limited

Brakes India Limited

THE MAJOR PRODUCTS

Motorcycles

TVS Ind Suzuki AX 100

TVS MAX 100

TVS MAX R 100

TVS Supra

TVS Suzuki Samurai

TVS Suzuki Shogun

TVS Suzuki Shaolin

TVS Suzuki Fiero

TVS Fiero

TVS Star

TVS Star City

TVS Star city deluxe

TVS Star Sport

TVS Fiero F2

TVS Fiero FX

TVS Centra

TVS Victor (110 cc)

TVS Victor GLX (125 cc)

TVS Victor EDGE (125 cc)

TVS Flame (125 cc,ccvti technology)

TVS Apache (150 cc,13.7 Ps@8500rpm)

TVS Apache RTR 160

TVS Apache RTR 160 EFI (ElectronicFuel Injection)

TVS Flame



Former characteristics of the market in India?

1990’s India, Indian economy after independence Indian economy wa s influenced by the colonial experience, which

was seen by Indian leaders asexploitative.Domestic policy tended towards protectionism, witha strong emphasis on

import substitution, industrialization, economic interventionism, a large public sector, businessregulation and centra

planning, while trade and foreign investment policies were relatively liberal.

Production capacities were limited, and yet it was a marketing heaven for the existing producers. Customers waiteduncomplainingly for long periods (extending to a year and beyond) after full

Payment to collect their set of wheels

Before change;

Limited Licensing

Restriction in import

Lobbyism

Limited production capacity

Customer perception based on experiences about payment methodology

Demand supply gap

Two wheelers considered as family transport

Main Players of the Market:



How was the market changing?

After 1991 , a new India emerged after the Balance of Payment(BoP) crisis. The balance of crisis, which show Indian

currencies falling rapidly also forced the Government, to take a new direction . India, from a socialistic and protected

economy moved to capitalist and market economy.

A thriving new affluent middle class came into existence. The neglected software sector of Indian Business , became the

new poster boy for India’s Business success . The economic reforms which was forced , by the troubling situation , India

faced in the times of 1991 , actually brought a new level of change . There where blockbusters IT companies, which

came out from Indian young generation . It is these time onwards, that three major IT companies of India, made its mark

in the World – Infosys,Wipro and TCS .

The market economy also brought substantial change in the Indian society . It seemed for some time , that India has

opened up, and the entire cultural psyche , is going through a strong transformation . The internet also brought a new

revolution to Indian Business . Though things look pretty positive , India still didn’t become an economic superpower.

Changing Attributes;

Customer oriented

Permission of import by Govt. led to advance technological impact on product

Due to encouragement to the foreign investment increased production capacity

Improved distribution

Increased growth rate

Technical collaborations

No. of choices

Increased capacity

Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the

combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one

approaching "pure competition", in which available profits for all firms are driven to normal profit.

Brand equity

sunk costs

Customer loyalty to established brands

http://en.wikipedia.org/wiki/Profit_%28economics%29#Normal_profit



http://en.wikipedia.org/wiki/Brand_equity


http://en.wikipedia.org/wiki/Sunk_costs


http://en.wikipedia.org/wiki/Customer_loyalty








The existence of products outside of the realm of the common product boundaries increases the propensity of customersto switch to alternatives. Note that this should not be confused with competitors' similar products but entirely differentones instead

Buyer propensity to substitute Relative price performance of substitute

Buyer switching costs

Perceived level of product differentiation Number of substitute products available in the market

Ease of substitution. Information-based products are more prone to substitution, as online product can easily

replace material product. Substandard product

Quality depreciation

What roles did qualitative research and quantitative research fulfill?

Qualitative Research;

Qualitative research is a method of inquiry employed in many different academic disciplines, traditionally in the socia

sciences, but also in market research and further contexts.[1] Qualitative researchers aim to gather an in-depth

understanding of human behavior and the reasons that govern such behavior. The qualitative method investigates the

why and how of decision making, not just what , where , when.

Qualitative Research Attributes

Critical Social Research, used by a researcher to understand how people communicate and develop symbolic meanings.

Ethical Inquiry, an intellectual analysis of ethical problems. It includes the study of ethics as related to obligation,

rights, duty, right and wrong, choice etc.

the beliefs, and develops ways to specify how

a knowledge base should change in light of new information.

one to reflect and provide possible answers to current issues and problems.

Following are the things which TVS did in order to clear out the Market Requirement:

Market structure identified More in-depth analysis of consumer behaviors.

Better connection of brands leading customization

Quantitative Research;

In quantitative research your aim is to determine the relationship between one thing (an independent variable)

and another (a dependent or outcome variable) in a population. Quantitative research designs are either

descriptive (subjects usually measured once) or experimental (subjects measured before and after a treatment).

http://en.wikipedia.org/wiki/Propensity



http://en.wikipedia.org/wiki/Switching_costs



http://en.wikipedia.org/wiki/Product_differentiation



http://en.wikipedia.org/wiki/Social_sciences




http://en.wikipedia.org/wiki/Market_research


http://en.wikipedia.org/wiki/Qualitative_research#cite_note-1



http://en.wikipedia.org/wiki/Human_behavior


http://en.wikipedia.org/wiki/Decision_making



http://en.wikipedia.org/w/index.php?title=Critical_Social_Research&action=edit&redlink=1


http://en.wikipedia.org/w/index.php?title=Ethical_Inquiry&action=edit&redlink=1















A descriptive study establishes only associations between variables. An experiment establishes causality

For an accurate estimate of the relationship between variables, a descriptive study usually needs a sample of

hundreds or even thousands of subjects; an experiment, especially a crossover, may need only tens of subjects.

The estimate of the relationship is less likely to be biased if you have a high participation rate in a sample

selected randomly from a population. In experiments, bias is also less likely if subjects are randomly assigned to

treatments, and if subjects and researchers are blind to the identity of the treatments.

Related with Quantitative technique, TVS follow the strategy to stimulate with market requirements and correlation the

customer requirement with Brand like:-

Segmentation to validate the need structure and measure the sizes of the need segments. Mapping and measuring ofexisting brands on the needs landscape helped to identify where the opportunity lay. Concepts were developed andtested and THEN finally the technical design team given the direction toDevelop/ identify a suitable product that expressed the desired brand positioning.

Powerful brands understand that emotion is critical to every marketing activity and decision. Managed well, emotion can

turn products into brands and build committed consumers.Whether you are developing and executing brand strategy,

finding innovation gaps and filling them or constantly reviewing brand delivery, NeedScope brings the emotive element to

your research.

NeedScope™ is a qualitative and quantitative market research system for understanding emotion throughout the

marketing process. NeedScope’s™ systematic approach to managing emotion in brands gives clients a framework for

consistent brand development, locally or globally. NeedScope™ is the world’s leading motivational research system and

has helped clients in over 2000 cases across 70 countries.

What insight is drawn from existing theory?

Modernity led the company to move away from family oriented scooters

Need of differentiated product

Company’s internal changes are required, i.e. Technical Enhancement in Functioning

Stability, trust and reliability are prime but not the only.

Explain the concept of The Need Scope System. What does the marketing model and archetypal framework

Need Scope™ is a qualitative and quantitative research system for understanding and managing emotion throughout the

marketing process. Using a psychological framework and unique projective tools, NeedScope goes beyond the functional

to uncover the emotional component central to successful marketing.

There are many layers to consumer needs and brand image.Emotion is at the heart of these and drives the consumer-

brand relationship.This layer is the hardest to reach as it’s less tangible and largely subconscious.

NeedScope uses projective tools qualitatively and quantitatively to reach the emotive layer. Projective sets reflect the

archetypal model. These are validated across 9 cultural regions for global application



Functional Needs - Product Features

Combination of power , speed, pick up, trendy look

Identity Needs - Social Values

social values of brand with consumers like young people, first time bikers, young-hearted people etc.

Emotive Needs – Symbology

Fun time, first found freedom, adventure, thrill, exploration;



TNS uses Need Scope to harness the power of emotion using a unique set of tools:

the consumer-brand relationship model links the layers of consumer needs and brand image at the heart of the

marketing equation

our projective tools access and measure emotion qualitatively and quantitatively



our powerful analysis system is not only simple to use but has been developed to directly answer marketers

questions

the consumer-brand relationship model links the layers of consumer needs and brand image at the heart of the

marketing equation

the Need Scope psychological model summarizes universal human emotions

our projective tools access and measure emotion qualitatively and quantitatively

our powerful analysis system is not only simple to use but has been developed to directly answer marketers

questions

Archetypal Framework



What problems was TVS Company facing in marketing its two wheelers? What made them change their

thinking?

Increase in competition

The Marketers approach to the Consumer directly increased shift

Need of a brand to connect with consumer’s choice

Customized product

Price and efficiency was prime focus

Changes In Thinking

TVS shifted to no. 3 position

Immediate exploration of market was needed

Multiple choices at all price tiers available

TVS turned to better engineering and designs

A distinct positioning was required

The Need Scope model is a state of the art model for understanding archetypal consumer needs and brand perceptions.

It is an invaluable tool when dealing with strategic issues in branding, creating inspiration in innovation and concept

development as well as building competence and understanding about customer and brands in the organization.

What were the six needs that were identified through quantitative research? What were the characteristics

of each? What segment was selected by TVS and why?

Liberation; 21%: Fun time, first found freedom, exploration

Potency 28%: A love of risk & adventure, conquering, pushing limits

Belonging 12%:To fulfill role as provider to belong to peer group

Exclusivity 13%: Enable efficiency, success with & convenience

Efficiency 13%: Feel better than others and sophisticated

Compensation 13%: want to get the value back from the product they are paying for

Potency and Liberation: As it was the largest segment



Functional Promise; Stylish look, power and pickup, Lightness to reflect the mood, easy maintenance,

partnership with trendy retailers sponsorship on Moto GP Sports.

Does Apache have the ingredients to be “cool” and is the concept of consumer tribe relevant?

Potency and liberation oriented segment is targeted for Apache that shows consumer’s behavior in shape of love

,adventure, conquering, pushing limits, fun times , freedom and exploration.

Apache was symbol of;

• Celebration

• Not associated with tribe commitments and bounding

• To have a Liberty in activities and journey

• Modernity focused

TVS Apache is an exciting offer from TVS. A powerful blend of contemporary design and engineering, TVS Apache is

superbly styled with fantastic finish. The mighty machine has sleek finish with lines that flow smoothly and seamlessly.

Having a muscular design theme, TVS Apache has arrow shaped headlamp and fairing combo. OverDrive, BS Motoring

and Autocar named it Bike of the Year 2006. BBC Top Gear named it Design of The Year 2006 for Two Wheelers.

It was not just about bold decision making and creating the right concept. The execution and implementation remained

true to the archetypal positioning and delivered the perfect tonality. Advertising created was completely differentbothanything TVS had done before and a complete break from the corporate image. To ensure that the planners

remained true to the archetype and did not give in to the temptation of resorting to a comfortable direction that hadworked before, a principle of NOTness was used to develop the advertising and marketing communication.

Term Report SMM - TVS

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