ADMINISTRATION
TERM PAPER
Of
MARKETING MANAGEMENT
On
4-STROKE BIKE
SUBMITTED TO
SUBMITTED BY
SUDHIR MISHRA(51)
M.B.A.(e-B) II sem
INDEX
Topics
Future Strategy
Bibliography
ACKNOWLEDGEMENT
4-STROKE BIKE
SUDHIR MISHRA
INTRODUCTION ABOUT TVS COMPANY
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
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 commercial vehicles passenger cars,
finance and insurance.
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.
Future Focus:-
In the future, TVS Motor Company will be one among the top two 2-wheeler companies
in India and one among the top five 2-wheeler companies in Asia.
We will have profitable operations overseas, especially in Asian markets, capitalizing on
our expertise in the areas of manufacturing, technology and marketing. The Company
will hone and sustain its cutting edge of technology by constant benchmarking against
international leaders.
TVS Motor Company is the only two-wheeler company in the world to be awarded the
world’s most prestigious and coveted recognition in Total Quality Management .
3. Star of Asia Award to Mr. Venu Srinivasan, CMD TVS Motor Company by
Business Week International.
4. TVS Scooty Pep won the prestigious 'Outstanding Design Excellence Award' from
Business World and National Institute of Design .
5. Venu Srinivasan, Chairman and Managing Director, TVS Motor Company was
Honoured with Doctorate in Science by University of Warwick, United Kingdom.
6. Emerging Corporate Giant in the Private Sector awarded by The Economic Times
and the Harvard Business School Association of India.
7. Best Managed Company award from Business Today, one of India’s leading
business magazines.
7% 4%
12%
16% 61%
FY 2008E
7%
6%
9%
12%
66%
Bajaj CT 100 continuous to be a clear leader in this segment inspite of strong competition
from TVS Star-city and upgraded CD Dawn. It is believe that CT100's with its excellent
performance and fuel economy will help the company to sustain and improve the market
share going forward.
Executive Segment-
Exhibit 4: Market share
Players Models Market Share (%)
This is the segment which constitutes nearly 50% of the total market and is poised to
grow at a robust rate with Hero Honda holding major share. Bajaj's share in the segment
was paltry 7-9% a year back. But today the success of Bajaj Discover has shaken up the
market place, taking its share close to 20%. While we believe that Hero Honda would
continue to hold major chunk, we are also witnessing greater competition (especially
from Bajaj Auto) in this high growth segment.
Premium Segment-
Exhibit 5: Market share
Players Models Market Share (%)
TVS-APACHE :- AN INTRODUCTION
TVS Motor Company, one of the largest players in the two-wheeler segment in India, is a
perfect play on the boom in the country's two-wheeler industry. The company has
indigenously developed a number of products across the two-wheeler segment. It now
has a strong presence in all the product categories: motorcycles, scooters and mopeds.
The proposed foray into the three-wheeler market should further fuel the company's
growth.
TVS Motor Company is the third largest 2 wheeler Company after HHML and BAL.
After the success of economy and executive segment, TVS focused on premium segment.
Hence company launched its new motor cycle Apache-150 to raise the competition in this
segment. Earlier HHML and BAL was the key player in this segment. But now TVS is
giving tough competition to these players. Initially Apache was launched in selected
cities but after the initial response, company decided to launch it all across the country.
After the success of Apache-150, company launched the new variant Apache- RTR 160.
Finally, APACHE holds 13% in premium segment and proved very beneficiary to TVS to
be a market leader in this segment.
The Apache RTR 160cc has all the makings of a lean, mean and wild machine; the latest
Apache to hit the Indian roads, it takes over from where the older TVS Motors offerings
left off: get reading to earn your racing stripes, true-blue bikers!
Known for its affinity to techno-savvy bike designing and accessorizing flanks with
sensational stylizing, TVS Motors has more than adequate ammo for capturing a whole
new bike-loving segment in India and converting old-faithfuls from other established
brand loyalty status to potential owners of a technologically advanced and powerful
riding experience: the new Apache 160 unveiled! While the earlier model did not
receive the attention it deserved, due to limited marketing and advertising exposure, the
new RTR 160 plans to take over the remaining customers who were not reachable
through inadequate outreach sales programs and is all set to win hearts and sales targets
where its predecessor, the Apache 150 failed.
More in store for the man looking for a fitting companion for long rides on lonely streets:
the Apache RTR bike is not short of either powered performance or external beauty.
Dual triangular LED tail lamp features are arresting enough for the first-time looker but
what calls for a second glance towards the Apache RTR 160 lies beyond the integrated
reflex reflector: the entire riding position is made affordable in a way that lends
ergonomics a whole new meaning, with style and comfort adequately provided for.
The gearbox is the same as found in the 150Apache, no change, no problem, as the old
one too was a gem as they gave effortless shifting. The clutch is also a well hand around.
The Apache RTR160 got new features, which includes the latest technology, like the Digi
Speedo.
Pricing perfect, wide wheel and tire ratios makes for road and ride-worthiness factors in
the four stroke, single cylinder 15.2bhp (at 8500rpm) Apache RTR, a great buy for bold
bikers!
NewFeatures:-
The Brake Pedals are made up of alloys. The new racing stickers from the head to the but
looks really good on it, but i like it most with the yellow. New LED tail lamps. Jealous of
the Pulsar, the Apache also got the LCD digi speedo and the X-tremes split grab tail.
Some more modifications have been made in lights, handle bars and pedals , Fuel
tachometer and odometer. They have tried to maximize the styling without changing its
real identity and made a new design for the side mirrors. How much ever you forget to
get the bike to the workshop, the bikes cares for itself with the reminders that alert
you..and oh ya.. forgot.. you gotta take it to the shop. Improvement in the riders position
with clip on handlebars and low bike profile and has also improved braking. And the
engine fairing also is another feature of sporting
The RTR160 is like an upgrade to the ride, the next level for accelerating. The bike just
loves to be raced. The riding comfort too has increased with the well balanced clutch and
soft gear shifts along with the Apache's Poly Shocks that takes up potholes well and
enhance the sporty feel. The RTR160 is really comfortable to ride and its bleddy damn
fast!! And braking is another feature where it should be appreciated, they have
RotorPetalDisc and promised a confirm stop.
Verdict:-
The Apache is definitely a great bike and the revving will surely entertain you. The
Apache and the Pulsar is priced almost equally and this is a big choice, go with your
heart, not the brain. A definite Rocker, cheers to Apache RTR160.
TECHNICAL SPECIFICATION
Engine
Type Air-Cooled OHC
Stroke (2/4) 4 - Stroke
No. of cylinders Single Cylinder
Bore x stroke 57 mm x 57.8 mm
Displacement 147.5 CC
Electrical 5.0 Ah (Kick-Start) / 12 Volts, 9.0 Ah (Self-Start)
Transmission
No. of Gears 5 Speed Constant mesh
Clutch Double Cradle
Performance
Maximum Power 9.95 kw / (15.2 bhp) @ 8500 rpm
Max. Torque 12.3 Nm @ 6000 rpm
Start Kick Start / Electric Start
Suspensions
Front Telescopic Fork, 105 mm Front Suspensions
Rear Monotube inverted Gas filled shox (MIG)
Brakes
Front Disc Brakes, 240 mm at Front
Rear Drum Brakes, 130 mm at Rear
Tyres
90 x 90 x 17 (Kick-Start) / 90 x 90 x 17", Spoked
Front
Wheel (Self-Start)
Rear 100/80 X 18” – 90/90 X 18”(optional)
The Apache RTR comes with a price tag of Rs.65, 000 with color choices of Red, Yellow,
Silver, Black and Titanium; its closest competitors are the Bajaj Pulsar and Honda
Unicorn, both being considerably higher in price ranges. This makes the Apache RTR
from TVS Motors a real bargain deal for similar style treatment and quality riding
experience.
b)Demographic Segmentation
Age: 18-30
Gender: Male
Social class: working class, middle class, upper middle class, lower uppers.
c) Psychographic segmentation
d) Behavioral Segmentation
BCG MATRIX
TARGET OF APACHE RTR:-
With the increasing need for sporty bike being felt by youths, especially to attend college
students and working men, the projected growth in demand for these types or sporty bike
could well start to show up in actual numbers on the roads.
The company that started off the trend by targeting college going youth as potential
customers for its two-wheelers was TVS Motor with its apache and apache rtr.
TVS-APACHE Positioning:-
Target segment
• Urban commuters mainly aging between 18-30 yrs.
• People who want more power, functions, style and feature at higher
Prices.
• People who want to upgrade from their present 125cc bike.
• People who want some sporty look bikes.
Competition
With other products
• Directly positioned against 125-150cc bikes.
• Indirect competition from other premium segment bikes which offers more
power, style and features.
With companies
• In fierce competition with Bajaj Auto for second place in 2 wheelers market.
• In direct competition, with Hero Honda, Yamaha, Honda, Suzuki for market share
in the Premium segment.
Proposed positioning
• Great features and more power at unbelievable price.
• Bike with latest technologies like RTR.
• Great fuel efficiency in premium segment.
• More comfort and better control.
A niche segment, which constitutes nearly 10% of the total market, Bajaj still retains its
growth momentum and an undisputed leader despite healthy competition from Honda
Unicorn, Yamaha's Enticer and TVS Apache. Though, we witness a competition from
Apache in the future, we believe that the Pulsar family will arrest any potential decline in
its market share.
There are three major competitor in the segment.these three competitors are as following:
1.Honda Unicorn
2.Hero Honda CBZ-XTERME
3.Bajaj Pulsar Dts-i
HONDA UNICORN
Striking Features
Striking Features
Technical Specifications
Weight / Measurements
Dry Weight (Kg) 126 (Kick) / 130 (Self)
Kerb Weight (Kg) 139 (Kick) / 142 (Self)
Length (mm) 2090
Width (mm) 750
Height (mm) 1095
Wheelbase (mm) 1340
Seat Height (mm) 790
Ground Clearance (mm) 168
Fuel Tank Capacity (Full ) (Lt) 13
Reserve Tank Capacity (Lt) 1.3
Performance
CBZ Extreme powered by 150 cc engine that generates 14 ps of power @ 8500 rpm, this
makes CBZ Extreme the most powerful bike in this segment.
The powerful CBZ X-treme is equipped with loads of features. Diamond-frame type
tubular chassis, box-section swing arm, adequate ground clearance of 145 mm with
stepped up pillion seat and split grab rail provides the extreme driving pleasure for rider
and the pillion rider.
This new offering from Hero Honda comes with disc brake and 5 spoke alloy wheel as
standard fitment.
Launched in two variants with kick-start and self-start option, CBZ X-treme is up for sale
with a ex-showroom price tag of Rs. 54,000-56,000.
The muscular aerodynamic shape of Pulsar DTSi and its 1350 mm of wheel base with
17" large alloy wheels give this bajaj bike a robust presence on the road.For the first time
in India, Pulsar DTSi is equipped with an Oil cooler, tube less tyres and new digital
console that makes the Pulsar most sporty and stylish two wheeler on Indian roads.
Launched in three variants of 200cc, 150cc and 180 cc, Pulsar DTSi has a price tag of
Rs.70-75,000 (approx.) and up for sale through out the dealerships of Bajaj Auto India.
Company Name Segment USP
• Engine Oil Cooler to control the temperature and maintain the high speed and rpm.
• Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip
Meters contributes to enhanced riding comfort.
• Tubeless tyres for better road grip and stability.
• First bike in India with large 33 mm front fork for better shock absorbing ability.
• Constant velocity (CV) carburetor for high level of performance.
• Split seat for better riding and sitting comfort.
Technical Specifications
Max. Horsepower
18 Ps / 13.25 Kw @ 8000 rpm
(ps/rpm)
Max. Torque (kg
1.75 kgm / 17.17 Nm
m/rpm)
Maximum 11.19kw / (15.2 10.6 kw (14.4 ps) 10.37 bhp (14.09 13.3 bhp / 9.9
Power bhp) @ 8500 rpm @ 8500rpm KW) @ 8500 rpm kW @ 8000 rpm
Ground
180 mm 145 mm - 168 mm
Clearance
MARKETING STRATEGY
“TVS would like to have a market share of 23 per cent of the Indian two-wheeler market.
At present, it has a market share of 19 per cent. It will cross one million vehicles by next
year.
TVS is a hardworking company, sometimes monotonously so. But it is much more than
work. It is setting directions, looking at technologies, marketing surveys, etc. But most
important of all is the customer. Unless we understand the customer and give the
customer the benefits he is looking for, we will not be successful.
We don't think the Indian customer is as demanding as he should be. He should be far
more demanding. We feel the Indian customers can bargain for better things. We would
provide better things if they were a little more aggressive in their demands.” said by Mr.
Venu Srinivasan chairman of TVS Sujiki
Advertising by companies over the past 100 years has primarily been about selling the
product, service or even brand to the consumer. Push the visual image, the taste, feel or
status obtained with using it.
The fundamental law was the consumer had to be informed about the product and its
virtues.
It has opened up a whole new way of thinking about interacting with consumers by
providing them with activities, tools, resources etc.
First a bit of a landscape observation….Increasingly companies are becoming aware that
customer trust, loyalty and spending patterns can be influenced by careful integration into
their lives.
It can be called consumer centric marketing.In fact that use of the term is often used to
mean glorified target marketing using data mining techniques that have becomes very
readily available with gathering and data warehousing becoming increasingly easy.
The trick, is to make consumers pull products by giving them a cause to have a sense of
belonging to brand community.The process of interacting differently with the brand is
coming about as a result of the increasing clutter in the overall media space, making it
important to find new ways communicate effectively with the consumer.
Social Responsibilities:-
This extended arm of the company believes in social responsibility and has involved
itself in several community development initiatives that have significantly improved the
standard of living of the people in 51 adopted villages across the country.
Economic development
The program enables people below the poverty line in these adopted villages to earn their
livelihood by involving them in activities that generate income.
Health
Health is one of the main focus areas of the Srinivasan Services Trust. Dental care
camps; eye camps, health check-up and nutrition programs are conducted. The initiative
also focuses on primary health, maternal health, child-care and leprosy eradication.
Infrastructure Development
The company is actively involved in the community development of the villages by
providing infrastructure facilities such as housing, sanitation, roads, drains, bus shelters,
medical centre and natural resources management.
Networking:-
TVS Motor Company has established an e business system, which maximises company
values and profits through e- transformation.
With the establishment of ERP systems by SAP, all processes of the company are
integrated across the manufacturing plants, suppliers, area offices and warehouses in
India.
All area and branch offices access the system via leased lines and VSAT.
The company has successfully rolled out a Dealer Management System (DMS) to help
in standardising best practices in dealerships and CRM to improve interaction with
customers and product quality
TVS Motor Company is a reliable partner providing customers with quality products
through an e-sales portal site and information exchange.
Integrated Marketing
TVS Motor Company, every department works in tandem to produce quality products.
The people form the pillars of support, strengthening the overall quality standards and
moving towards total customer satisfaction.
These processes help us produce defect free vehicles known for their durability and
reliability.
Channels and Communication
• Television Ad Commercials
• Events
• Pamphlets
• Campaign
Internal Marketing
FUTURE STRATEGY
TVS Motor Company will be one among the top two 2-wheeler companies in India and
one among the top five 2-wheeler companies in Asia.
Buoyed by the success of its Apache, TVS Star and Scooty Pep models, TVS is working
on a strategy that will position them as power brands.
While the Star City crossed the one million mark in October, Apache, which has
established a formidable position for itself in the premium segment, has clocked on
average around 16000 units per month. Similarly, the Scooty Pep in the gearless scooter
segment has been a hit of sorts with women buyers.
In an exclusive interaction with Auto Monitor, Senior vice president, sales and marketing,
RC Chandramouli, TVS Motor Company, confirmed the news and added that his
company will unveil the strategy in a phased manner, starting with the Star City brand.
In a fiercely competitive two-wheeler market, most of the manufacturers are dolling out
buyer sops and discounts. Bajaj for instance, has been running a two-year extended
warranty scheme on all its bikes since the last three months for its CT 100 and the Platina
brand. One has to fork out an additional sum between Rs 500-550 to avail the extended
warranty scheme. The buyer also gets a replacement warranty for electrical parts only.
Will TVS strategy of Power Brands pay dividends? Vijay Sarthy of Karvy Stock Broking,
who sais, ‘While the company’s strategy seems to be quite attractive on a stand-alone
basis, it’s not in sync with the industry which is slated for a shift in buyer’s preference
from 100cc to125cc.
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