A REPORT OF ON-THE-JOB-TRAINING UNDER

THE KANAK TVS MOTORS

“MARKETING strategies of tvs motors”

In The Partial Fulfillment of Requirement for The Degree Of
BACHELOR IN BUSINESS ADMINISTRATION

CIMAGE PROFESSIONAL COLLEGE

PATNA
SUBMITTED BY: -
NAME – Alok Ranjan
COLLEGE ID – 11814
REG. NO. – 20302310008
COURSE – BBA 5 SEMESTER
TH

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Session – {2020-2023}

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 Acknowledgement
I would like to express my sincere gratitude to all the
concerned people who have directly or indirectly contributed
towards completion of this project.
I extend my sincere gratitude towards “KANAK TVS
MOTORS” for providing me this opportunity and resources to
work on this project.
I am extremely thankful to MR. KISHAN KUMAR and MR.
AVINASH KUMAR my mentors in “KANAK TVS MOTORS” for
their guidance and invaluable advice during this internship.
Also, I owe my wholehearted thanks and appreciation to the
entire staff and employees of the KANAK MOTORS for their
cooperation and assistance during the course of my ON -JOB
– TRAINING PROGRAMME.
I hope that I can build upon the experience and knowledge
that I have gained and make a valuable contribution towards
this industry.

Alok Ranjan
BBA (5TH Semester)

Preface

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Internship is the most vital part of a BBA course, both as a
link between theory and actual industrial practices as well as
an opportunity for hands on experience in corporate
environment. I therefore, consider myself fortunate to receive
the training in an esteemed organisation viz. KANAK TVS
MOTORS.
Someone has rightly said that practical knowledge is far
better than classroom teaching. During this project I fully
realized that.
Yet the opportunity could not have been utilised without the
guidance and support of many individuals who although held
varied positions but were equally instrument for although
completion of many trainings.
I thank to all my faculty members, my Parents and friends.
However, I accept the sole responsibility errors of omission
and would be extremely grateful to readers of this project
report if they bring such mistake to my choice.

Alok Ranjan
BBA (5th Semester)

Declaration

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I Alok Ranjan , hereby declare that this report is the record of
authentic work carried out by me during the period from 1 st
March , 2023 to 31st March , 2023. This report submitted by
me in partial fulfilment of the requirements for the award of
BACHELOR OF BUSINESS ADMINISTRATION. The study
was conducted at KANAK TVS MOTORS.

The matter embodied in this project report has been not be

submitted to any institution for the ward of degree. This
project report is based on my original work. This information
is purely of work of my hard labour and purely of academic
interest.

Alok Ranjan

BBA (5th Semester)

Contents
Sno. Page no.
1. Certificate 2
2. Acknowledgement 3
3. Preface 4

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4. Declaration 5
5. Company Profile 7
6. Histroy 9
7. Products 15
8. Mission & Vision 22
9. Characteristics 23
10. Achievements & Awards 24
11. Market Share 26
12. Company Performance 28
13. Annual Report 31
14. Mgmt. Discussion & Report Analysis 32
15. SWOT Analysis 37
16. Marketing Mix 43
17. Market STP 52
18. Suggestion 54
19. Conclusion 55
20. Bibliography 56

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INTRODUCTION

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 Introduction

TVS Motor Company is the third largest 2-wheeler company in India

with a revenue of over ₹18,217 crore (over US$2.9 billion). It has an
annual sale of more than 3 million units and an annual capacity of
over 4.95 million vehicles. TVS Motor is also the 2nd largest exporter in
India with exports to over 60 Countries.

TVS Motor Company (TVS) is an Indian multinational automotive

company that manufactures motorcycles, scooters, and threewheelers,
headquartered in Chennai, India. It is the third largest motorcycle
company in India with a revenue of over ₹20,000 crore (US$2.7 billion)
in 2018–19. The company has an annual-sales of three million units
and an annual capacity of over four million vehicles. TVS Motor
Company is also the second largest two-wheeler exporter in India with
exports to over 60 countries.

TVS Motor Company Ltd (TVS Motor), a member of the TVS Group, is
the largest company of the group in terms of size and turnover.

TVS Motor has footprints globally, including geographies like Middle

East, Africa, SE Asia, Indian subcontinent, Latin & Central America.

Founder – T.V.SUNDARAM IYENGER

Founded – 1978 ; 44 Years Ago
Headquarters – Chennai, Tamil Nadu , INDIA
Industry – Automotive
Area Served - Worldwide
Venu Srinivasan (chairman & managing director) Sudarshan
Venu (joint managing director)

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 History
T. V. Sundaram Iyengar began with Madurai's first bus service in
1911 and founded TVS, a company in the transportation business
with a large fleet of trucks and buses under the name of Southern
Roadways.

Early history
Sundaram Clayton was founded in 1962 in collaboration with Clayton
Dawendre Holdings, United Kingdom. It manufactured brakes,
exhausts, compressors and various other automotive parts. The
company set up a plant at Hosur in 1976, to manufacture mopeds as
part of their new division. In 1980, TVS 50, India's first two-seater
moped rolled out of the factory at Hosur in Tamil Nadu, India. A
technical collaboration with the Japanese auto giant Suzuki Ltd.
resulted in the joint-venture between Sundaram Clayton Ltd and
Suzuki Motor Corporation, in 1987. Commercial production of
motorcycles began in 1989.

Suzuki relationship

TVS and Suzuki shared a one-year-long relationship that was aimed at

technology transfer for design and manufacture of two-wheelers
specifically for the Indian market. Re-christened TVS-Suzuki, the
company brought out several models such as the Suzuki Supra, Suzuki
Samurai, Suzuki Shogun and Suzuki Shaolin. In 2001, after separating
ways with Suzuki, the company was renamed TVS Motor, relinquishing
its rights to use the Suzuki name. There was also a 30month
moratorium period during which Suzuki promised not to enter the
Indian market with competing two-wheelers.

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Recent

TVS Apache RR 310

Recent launches include the flagship model TVS Apache RR 310, the
TVS Apache RTR 200, TVS Victor and TVS XL 100. TVS has recently
won 4 top awards at J.D. Power Asia Pacific Awards 2016, 3 top awards
at J.D. Power Asia Pacific Awards 2015 and Two-Wheeler Manufacturer
of the Year at NDTV Car & Bike Awards (2014–15).

In early 2015, TVS Racing became the first Indian factory team to take
part in the Dakar Rally, the world's longest and most dangerous rally.
TVS Racing partnered with French motorcycle manufacturer sherco,
and named the team Sherco TVS Rally Factory Team. TVS Racing also
won the Raid de Himalaya and the FOX Hill Super Cross held at Sri
Lanka. In three decades of its racing history, TVS Racing has won over
90% of the races it participates in.

In 2016, TVS started manufacturing the BMW G310R, a model

codeveloped with BMW Motorrad after their strategic partnership in
April 2013. In December 2018, the Hosur plant where the motorcycle is
manufactured rolled out its 50,000th G310R series unit.

On 6 December 2017, TVS launched their most-awaited motorcycle,

the Apache RR 310 in an event at Chennai. The 310cc motorcycle with
an engine which was co-developed with BMW features the first ever full
fairing on a TVS bike, dual-channel ABS, EFI, KYB suspension kits,
etc. It is expected to rival bikes like KTM RC 390, Kawasaki Ninja
250SL, Bajaj Pulsar and Dominar and Honda CBR 250R after hitting
the market. The Apache RR 310 is designed and realised entirely in
India.

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On 17 April 2020, it has been reported that TVS Motor Company
acquired Norton Motorcycle Company in an all-cash deal. In the
short term, they will continue the production of motorcycles at
Donington Park using the staff.

TVS Motor Company the flagship company of TVS Group is the third
largest two-wheeler manufacturer in India. The company manufactures
a wide range of two-wheelers from mopeds to racing inspired
motorcycles. The company also manufactures three-wheelers. The
company has an annual production capacity of 4 million 2 wheelers &
120000 three wheelers. It is one of the leading two-wheeler and three-
wheeler exporters from India distributing to over 60 countries. The
company has manufacturing plants located at Hosur in Tamil Nadu
Mysore in Karnataka and Nalagarh in Himachal Pradesh.
It also has one manufacturing unit located at Karawang in Indonesia.In
the year 1979 TVS Group company Sundaram-Clayton Ltd started
Moped Division at Hosur to manufacture TVS 50 mopeds. In the year
1982 the company entered into a technical know-how and assistance
agreement with Suzuki Motor Co Ltd of Japan and in the year 1985
they incorporated a new company Lakshmi Auto Components Pvt Ltd
for the manufacture of critical engines and transmission parts.In the
year 1986 the company acquired the assets of the moped division from
Sundaram Clayton Ltd. Also the name of the company was changed
from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd. In the year 1992
they launched two modes of motor cycles namely Samurai and Shogun
and in the year 1993 they launched TVS Scooty.During 1999-2000 TVS
Suzuki Ltd was amalgamated with Sundaram Auto Engineers Ltd an
unlisted group company which was incorporated in the year 1992. As
per the scheme all the assets and liabilities of erstwhile TVS Suzuki Ltd
together with all obligations and contingent liabilities were vested in
Sundaram Auto Engineers (India) Ltd with effect from April 22 1999.
This merged entity was later renamed TVS Suzuki Ltd.The TVS group
and Suzuki Motor Corporation parted ways from their 15-year-old joint
venture on September 27 2001. The shares held by the Suzuki Motor
Corporation were acquired by Anusha Investments Ltd a wholly owned
subsidiary of Sundaram-Clayton Ltd for Rs 9 crore. Thus the company
became a subsidiary of Sundaram-Clayton Ltd with effect from
November 15 2001. Since Suzuki Motor Corporation ceased to be a
shareholder of the company the company cannot use the word 'Suzuki'

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as the part of their name and hence the name of the company was
changed to TVS Motor Company Ltd. During the year 2002-03 the new
stylish TVS Scooty Pep and the upgraded version of Fiero was launched
in the market. In April 1 2003 the subsidiary company namely
Lakshmi Auto Components Ltd acquired the entire paid up capital of
Sundaram Auto Components Ltd. Consequently Sundaram Auto
Components Ltd became a subsidiary company with effect from April 1
2003.In October
2003 the company entered into a scheme of arrangement with
Lakshmi Auto Components Ltd and Sundaram Auto Components Ltd.
As per the scheme all the assets and liabilities of the rubber and plastic
businesses of Lakshmi Auto Components Ltd were transferred to
Sundaram Auto Components Ltd on slump sale basis on April 1 2003
for a consideration of 12.25 crores. The remaining business of Lakshmi
Auto Components Ltd namely engine components division together
with their investments in other bodies corporate was transferred to the
company with effect from April 2 2003.During the year 2003-04 the
company launched new products such as TVS Centra New Victor GL
Fiero F2 & Fx and Scooty Pep. During the year
2004-05 they launched new products such as TVS Star New Victor
GLX New Victor GX and Scooty Pep 'Splash' series.During the year
2005-06 the company entered into a joint venture with Columbian
party for exploring opportunities in Columbian market with an equity
investment of Rs 5 million. The company incorporated TVS Motor
Company (Europe) B V in Netherlands as a wholly owned subsidiary of
the company with an investment of Rs 91.63 crore. During the year
TVS Motor Singapore Pte Ltd Singapore became a wholly owned
subsidiary of the company with an investment of Rs 30.51 crore. PT
TVS Motor Company Indonesia was incorporated in Indonesia to
manufacture motorcycles and parts with an investment of USD 27.60
million and became subsidiary of the company in view of it being the
subsidiary of TVS Motor Company (Europe) B V which holds 75% of
the share capital. The remaining 25% was held by TVS Motor
Singapore Pte Ltd. PT TVS Motor Company Indonesia has acquired
lands in Indonesia for setting up a facility for manufacturing two
wheelers.During the year 2006-07 the company has established a new
plant in Himachal Pradesh with an annual production capacity of
400000 units scalable to 600000 units. PT TVS Motor Company
Indonesia a subsidiary of the company established a manufacturing

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facility at Karawang near Jakarta in Indonesia with production
capacity of 3 lakh vehicles per annum. During the year the company
launched multiple new products and variants such as StaR City ES
StaR Sport Scooty Teenz and 99 Colors on Scooty PEP. During the year
2007-08 the company commenced commercial production from its
Nalagarh Plant located in Himachal Pradesh. They commenced their
commercial production from their state-of-the art plant located at
Karawang in Indonesia and launched TVS Neo which is exclusively
developed for the Indonesian market. During the year the company
launched various new products and variants such as TVS Flame
Apache RTR StaR Sport StaR City 110 cc Scooty TeenZ Electric TVS
Tru4 Oil. During the year 2008-09 the company launched Scooty
Streak a tough and trendy variant of Scooty Pep+ and Apache RTR RD
premium segment motorcycle. Also they launched their three-wheeler
TVS King in six states. In June 2009 T V Sundram Iyengar & Sons Ltd
and their subsidiaries acquired the holding of foreign collaborators
Clayton Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus
Sundaram-Clayton Ltd became a subsidiary of T V Sundram Iyengar &
Sons Ltd. Consequent to this acquisition the company also became the
subsidiary of TVS with effect from June 3 2009.During the year 200910
the company launched TVS JIVE and TVS Wego in the market.
They also launched a four stroke three-wheeler with superior features.
They commenced export of TVS Apache to Brazil. Also they developed a
pan India presence in three-wheelers. In December 2009 the company
acquired the entire shareholding of TVS Energy Ltd. Thus TVS Energy
became a wholly owned subsidiary of the company. In June 2010 they
acquired the entire paid up capital of TVS Housing Ltd and thus TVS
Housing Ltd became a wholly owned subsidiary of the company.In
October 2010 the company won the SAP ACE Award for Consumer
Excellence 2010 in 'Best Run Award in Automotive' category. They also
won the Silver EDGE award from Information Week a leading IT
magazine for in house design and development of Data Acquisition
System for improving shop floor productivity. Information Week
annually recognize enterprises driving growth and excellence through
IT.In November 2010 the company launched TVS TRU4 Premium a
semi-synthetic 4T Engine Oil. In February 2011 Indian Bank signed an
MoU with the company for financing three wheelers manufactured by
the company. In March 2011 the company introduced ABS (Anti-lock
Braking System) in their premium segment motorcycle TVS Apache

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RTR 180 giving the bike formidable stopping power and superior
braking control that compliments its high performance capability.In
2011 the Company has developed an engine that is 20 per cent more
fuel efficient and is usable both in scooters and motorcycles. The
Company also launched Stylish TVS StaR City+ Asian Network for
Quality Award 2014.In 2015 TVS Motor Company & Kangra Central
Co-operative Bank in Himachal Pradesh sign MOU. The company has
launched the 2015 edition of TVS Phoenix 125 for the drum version
and for the disc brake version. During the year the company has
introduced a special edition of its legendary TVS XL Super' in
celebration of crossing the milestone of 1 crore mark in sales. The
Company signs MOU with TN Government for investment of Rs 350
crore. The Company also has launched its motorcycle 'TVS
Sport' with improved mileage and additional features during the year
under review.On 16 March 2016 TVS Motor Company announced that
it has entered into a partnership with Snapdeal to sell its motorcycles
and scooters online. Nine two-wheeler products from TVS Motor
Company will be available on Snapdeal. Customers will now be able to
select model colour and dealership of their choice on the Snapdeal
Motors platform from the comfort of their homesOn 26 September
2017 TVS Motor Company announced that its popular scooter brand
TVS Jupiter has clocked sales of 2 million units within 4 years of its
launch. On 6 December 2017 TVS Motor Company announced the
launch of TVS Apache RR 310. The motorcycle marks TVS Motor
Company's entry into the super-premium segment both in domestic
and international markets.On 5 February 2018 TVS Motor Company
announced its foray in the 125cc scooter segment with the launch of
TVS NTORQ 125. Designed for the youth TVS NTORQ 125 has been
developed based on the TVS Racing pedigree and comes with the
stateof-the-art CVTi-REVV 3 Valve engine. The scooter also marks the
launch of an exclusive technology platform - TVS SmartXonnect -
making it India's first connected scooter.On 14 March 2018 TVS Motor
Company launched the new 2018 TVS Apache RTR 160 4V. A
testimony to the racing legacy of the TVS Apache RTR series the new
TVS Apache RTR 160 4V is the most powerful 160cc motorcycle
creating a new benchmark in the segment. On 23 August 2018 TVS
Motor Company launched a new 110cc commuter motorcycle - TVS
Radeon. On 10 September 2018 TVS Motor Company announced that
its premium motorcycle brand TVS Apache has crossed a key sales

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milestone of 3 million units. On 18 September 2018 TVS Motor
Company announced that its 125cc scooter offering TVS NTORQ 125
has crossed the 1 lakh sales mark. On 19 September 2018 TVS Motor
Company announced its association with leading distributer in the
Mexican region Torino Motors a subsidiary of Groupo Autofin. In the
first year of the association Torino Motors will work with TVS Motor
Company to open 40 exclusive stores in the country for the distribution
of two-wheelers. With over 40 years of experience in the region Torino
Motors specialises in automobile and retail finance.

Products
1. Scooters

❖ TVS Jupiter 125

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❖ TVS Jupiter

❖ TVS NTORQ

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 ❖

TVS Zest

❖ TVS Scooty Pept+

2.Motorcycle

❖ TVS Apache RR 310

❖ TVS Apache RTR Series

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❖

TVS Apache RTR 165 RP

❖ TVS Raider

❖ TVS Radeon

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 ❖

❖ TVS Star City+

TVS Sport

3.Mopeds

❖ TVS XL 100

4.Electric

❖ TVS iCube

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❖

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 New Product Launches and Initiatives

During the year 2020-21, the following new products and variants

were Launched.

JUPITER
TVS Jupiter, reached 4 Mn+ happy customers during FY'20-21.
To continue the journey of providing "Zyada ka Fayda" ZX Disc
intelliGO and a sheet metal wheel variant was introduced in this
period. TVS Jupiter ZX Disc intelliGO was launched in February
2021, making it the first 110cc scooter to have Stop-go
technology (idle stop / start). TVS Jupiter ZX Disc intelliGO
further enhances the Zyada philosophy by reinstating Zyada
Convenience, Zyada Mileage and also enhancing technologically
advanced imagery. The non alloy wheel variant was launched in
October 2020, catering to more price sensitive customers who are
looking for affordability and utility led features and has received
positive response across markets. To sustain the strong brand
association and to establish Jupiter offers better features and
higher value than others in the segment campaign named, 'Har
Scooter se Zyada' was aired with high frequency during festive
season and was again promoted in Q4 for sustained mind share.

APACHE
TVS Apache Series has been a pioneer in race performance and
introduced many industry firsts and best-in-class offering. As a
brand, keeping in view of the evolving customer needs, it has
proudly upheld the tradition this year as well. The Apache series
achieved global sales milestone of 4 Million in the month of
October 2020. The customer experience is further enhanced by
the presence of exquisite brand experience program with Apache
Owners Group (AOG), APP (Apache Pro Performance), Apache
Riding Experience (ARE), TVS Racing Training School, Women's
Training and Selection and One Make Championship, which
continue to develop aspiration. The brand witnessed it's never
seen before increase in customer experience program with 172
activities in just 4 active months. Leading the 200cc sports

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segment with its technological prowess, the TVS Apache RTR 200
4V was introduced with ride modes. This is not just an industry
first but also a technology usually seen in 650cc and above
motorcycles. The three ride modes are "Sport, Urban and Rain",
with varying acceleration and ABS response; all from the same
engine. Another development this year was upgrade of Apache
RTR 160 4V with 17.63 PS of power, making it the most powerful
160cc motorcycle. Leading the two wheeler industry with another
big breakthrough, was the launch of first ever Augmented Reality
experience by a two wheeler OEM- TVS ARIVE. This app allows
customers to view the TVS Apache series motorcycles right before
their eyes, from the place of their choice. Adding to that it offers
detailed information about the machine with the options of
booking a test ride and placing an order, instantly.

XL 100 HD i-TOUCH START

TVS XL100 HD i-TouchStart crossed a new milestone of 4 million
customers since its launch in 2015. The year 2020 was the 40th
anniversary year of TVS mopeds and a special edition variant -
"Win Edition" was launched to mark this celebration. Win edition
was launched with many appealing style features including a new
color 'Delight Blue', chrome finish mirrors, metal shield for the
platform, diamond pattern seats and chrome style elements.
HeavyDuty series has been the most popular one among XL
customers and the new edition would add more interesting style
option for them to choose from. This variant comes with useful
features like easy on-off combo switch and USB mobile charging.
Also, the Company has introduced entry level variants with kick
start to provide affordable option to the customers with BS VI
technology benefits.

NTORQ
TVS NTORQ was launched in February 2018 and it was
Company's first 125cc product in the Scooter segment. Designed
for Gen-Z, TVS NTORQ provides a revolutionary riding experience
with cutting edge technology, style and performance. Keeping the
core customers in mind, this product has been provided with
many technologically superior features like Bluetooth
connectivity- the first ever scooter to have this feature. TVS

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NTORQ became one of the fastest growing scooters crossing 1
lakh sales within 6 months of launch. The product continues to
delight customers and has garnered several accolades since its
inception. In October 2019, TVS NTORQ Race Edition was
introduced in the market and it found exceptional resonance with
customers. It is currently the only scooter with a Race Tuned
Fuel Injection system with Best-in-class Performance in its
category. In FY 2020-21, TVS NTORQ introduced a special
variant in the portfolio - Super Squad Edition, in association with
Marvel Studios, inspired from the epic characters of the Marvel
Avenger's series - a first of its kind association in the two wheeler
industry in India. This resulted in significant growth of the brand
(13% growth from July-March over LY) and the variant currently
contributes to 30% of the overall portfolio in just 6 months of
launch.

I-QUBE
Launched in January 2020, TVS iQUBE marked the foray of
Company into the Electric Vehicle segment. The TVS iQUBE is a
smart mobility solution that promises to deliver a convenient,
personalized, connected and future mobility experience. It comes
equipped with SmartXonnect, advanced features like Geofencing,
Ride Statistics, Telematics, Remote charge assist and Navigation
assist along with 117 connected features. With a top speed of 78
kmph, a range of 75 Km in a single charge and features like Q-
Park assist, the TVS iQUBE redefines style, comfort and riding
experience. A dedicated public charging ecosystem spanning
across 10 dealerships in Bengaluru further enhances customer
ease and experience. With TVS iQUBE, the Company also
leveraged digital channels for vehicles booking and sales. A
digitally enabled purchase process allows seamless home
charging unit installations providing a truly hassle-free
experience to the customers. The product has seen extremely
encouraging response from the customers. With the increased
focus on Electric Vehicles, the TVS iQUBE is a strong contender
in this space in the times to come.

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 Strategic partnership with BMW Motorrad The Company has a
strategic partnership with BMW Motorrad to develop and
manufacture sub-500cc bikes both for domestic and global
markets. The Company has produced 83,592 units of BMW
310cc motorcycle till date.

Mission
We are committed to being a highly profitable, socially
responsible, and leading manufacturer of high value for
money, environmentally friendly, lifetime personal
transportation products under the TVS brand, for customers
predominantly in Asian markets and to provide fulfilment and

prosperity for employees, dealers, and suppliers.

Vision

TVS Motor will be responsive to customer requirements

constants with its core competence and profitability. TVS

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 Motor will provide total customer satisfaction by giving the
customer the right product, at the right price, at the right
time.
Characteristics of TVS Motor Company

It was the first Indian company to deploy a catalytic converter in a

100cc motorcycle and the first to indigenously produce a four-stroke
motorcycle. The list of firsts from the firm include:

1. India's first 2-seater moped – TVS 50

2. India's first Digital Ignition – TVS Champ

3. India's first fully indigenous motorcycle – TVS Victor

4. India's first Indian company to launch ABS in a motorcycle -

Apache RTR Series

5. Indonesia's first dual-tone exhaust noise technology – TVS

Tormax

6. India's first connected scooter which claims to be India's first

Bluetooth Connected Scooter with features like Call Assistance,
Navigation and Engine Killswitch - TVS NTORQ

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7. India's First 125cc bike with 3 Valve Engine, Inverted TFT display
with Gear Shift Indicator, Underneath Storage - TVS Raider 125.

Achievements And Awards

➢ Bike of the year 2021
TVS Raider is awarded “Bike of the year” at coveted 2021 Jagran
Hi-Tech awards.

➢ Bike Awards - 2019

Two-wheeler manufacturer of the year.

➢ Indian Motorcycle of the year - 2017

➢ Highest in Customer Satisfaction

TVS Motor has been awarded Highest in Customer Satisfaction
by J.D. Power Asia Pacific Awards for 2018.

➢ Most Appealing Executive Scooter

TVS Scooty Zest 110 is awarded the Most Appealing Executive
Scooter by J.D.Power Asia Pacific Awards for 2016.

➢ TwoWheeler Manufacturer of the Year

TVS Motor Company was named the Two-Wheeler Manufacturer
of the Year by NDTV Car and Bike Awards 2015.

➢ Most Trusted Brand

TVS is India's Most Trusted Brand in the Two-Wheeler Category.

➢ Most Appealing Premium Motorcycle

TVS Apache RTR180 is the Most Appealing Premium Motorcycle
as awarded by J.D.Power Asia Pacific Awards for 2018.

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➢ Highest Ranked Economy Motorcycle in Initial Quality TVS StaR
City + is awarded the highest ranked Economy Motorcycle by
J.D.Power Asia Pacific Awards for 2018.

➢ Most Appealing Economy Motorcycle

TVS StaR City + is awarded the Most Appealing Economy
Motorcycle by J.D.Power Asia Pacific Awards for 2018.

➢ Most Appealing Executive Scooter

TVS Jupiter is awarded the Most Appealing Executive Scooter by
J.D.Power Asia Pacific Awards for 2018.

➢ Highest in Customer Satisfaction

TVS Motor has been awarded Highest in Customer Satisfaction
by J.D. Power Asia Pacific Awards for 2016.

➢ Most Appealing Premium Motorcycle

TVS Apache RTR180 is the Most Appealing Premium Motorcycle
as awarded by J.D.Power Asia Pacific Awards, 2016.

➢ Best Executive Scooter

TVS Wego is awarded the Best Executive Scooter by J.D.Power
Asia Pacific Awards for 2016.

➢ Most Appealing Economy Motorcycle

TVS StaR City + is awarded the Most Appealing Economy
Motorcycle by J.D.Power Asia Pacific Awards for 2016.

➢ Motorbeam - Bike manufacturer of the year - 2018

➢ NDTV Car & Bike 2018

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MARKET SHARE OF TVS MOTORS

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 Company Performance (2020-2021)
The Company registered sales of 29.3 lakh units of two wheelers in 2020-21.

2020-21 tested the strength of the very fundamentals of India, its

institutions, administrative and healthcare system and even its social,
moral and economic fibre. The choices between lives and livelihood
needed to be made every day, by individual citizens, organizations,
institutions and the entire administrative system. The nationwide 42
day lockdown a key response, led to GDP contraction of 24% in the
first quarter. But with the easing of the active cases and the
Government intervening with multiple initiatives, recovery in Quarter 2
was ahead of estimates with a 7% GDP decline instead of the
estimated 11% decline. The Q3 & Q4 saw the GDP return to positive
territory, posting gains of 0.5% and 1.6%, bringing the full year to a
7.5% decline.

The domestic two wheeler industry declined by 13% in 2020-21 over

18% decline during 2019-20. The two wheeler industry saw sharp
changes in growth momentum over the quarters. Q1 2020-21
contracted due to the pandemic with a 74% decline and when the
markets opened up, registered 0% growth in Q2, 13% in Q3 and 24%
growth in Q4.

Compared to 2W industry decline of 13%, Company''s performance in

domestic was at 10% decline in sales volume of 2020-21.

In the International Business, exports of two wheelers in 2020-21 were

at 7.6 lakh units with a growth of 12% over 2019-20. Company exited
the month of March 2021 with an all-time high of 1,05,282 two
wheelers exports resulting in Q4 volume of 2,84,098 with a growth of
74%. Threewheeler exports during the year reached 1.15 lakh units
with a decline of 29% over 2019-20.

Sales revenue of spare parts grew by 1% in domestic and 41% in

exports.

In course of the transition to BS VI compliant technology, TVS Motor

was the first and only company to launch dual Fi platforms catering to
consumer use cases - Eco Thrust Fuel injection (ETFi) for enhanced
fuel efficiency and Race Tuned Fuel injection (RTFi) for enhanced

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throttle response. Across the portfolio, consumer insights were
converted to thoughtful improvements that went beyond BS VI, like
ride modes for Apache or additional underseat storage for Jupiter. This
enhanced portfolio was also taken to consumers in a much loved
corporate campaign Hum Banaye Jo Aapka Dil Chahe !, this focused
on TVS DNA of customer centric innovation.

Continuing with customer centric innovation beyond the BS VI

transitions, saw new launches like TVS NTORQ 125

super squad edition, RTR 200 4V with riding modes, Jupiter ZX Disc
intelliGo and TVS XL100 Win Edition. During the year 2020-21,
Company''s products bagged 10 awards, of which Moped won 5
awards, Motorcycles won 3 awards and Scooter 2 awards.

The Company also ensured systematic, company-wide initiatives to

control costs, prioritize capex, improve productivity and above all
improve health of cash flows across the extended enterprise, unlocking
significant potential for velocity and financial returns.

Total income of the Company including other income was $ 16,783.51

Cr in the current year 2020-21 as against $ 16,455.44 Cr in the
previous year. Profit before tax (PBT) was $ 826.24 Cr in the current
year as against $ 754.41 Cr in the previous year (after exceptional item
of $ 32.33 Cr). Similarly, Profit after tax (PAT) was $ 612.04 Cr in the
current year as against $ 592.25 Cr in 2019-20.

The Company has always recognized its social responsibility as an

integral and critical part of its value system. The response to CoVID-19
needed to be widespread and collective. The Company and its CSR
arm, the Srinivasan Services Trust (SST) undertook the following
initiatives:

• 10 lakh masks, 1.5 lakh gloves were handed to Government

agencies.

• 12.5 lakh Food Packets were distributed.

• 30,000 man-hours of community service.

• 4122 Villages covered with sanitization drives across states.

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• Donated Disinfectant Mist Spray Cannon mounted truck to the
Corporation of Chennai.
• Contributed to PM CARES fund, CM Funds of Tamil Nadu and
Karnataka.

Towards the employees & their families:

• Crisis Management task force deployed to ensure business continuity

plans.

• 2000 employees were seamlessly migrated to work from home with

no loss of productivity.

• TVSM Health Centre has been operating 24/7.

• Employees & families provided sensitization about safe practices at

home.

• Best Practice SOPs designed and deployed for resumption of

operations.

Towards the extended enterprise:

• The supplier / dealer claim payment settlements were expedited.

• Significant benefits in the form of interest waiver schemes were

introduced.

• Training for Suppliers, Indian and International dealers and almost

25,000 of their staff on best practices and SOPs in order to prepare
for the opening of dealerships post lockdown.

Towards consumers:

• Service Workshops and Road Side Assistance (RSA) programs were

kept operational.

• Over 100 service camps conducted for frontline law & order and
healthcare professionals.

• Ongoing communication on how to take care of the 2-wheeler

through the lockdown(s).

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• 100% ongoing adherence to strict Sanitization Protocol for all
dealership facilities.

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Annual Report (2020-2021)

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MANAGEMENT DISCUSSION AND ANALYSIS REPORT

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

Two-wheeler
The domestic two wheeler industry recorded a sale of 15.1 Mn units in
2020-21, a decline of 13% from 17.4 Mn units of 2019-20. It witnessed
a decline of 74% in Q1. However, for the rest of the year, the industry
revived and grew by 11% compared to same period previous year. This
growth was primarily led by a resilient rural economy which was less
affected due to the pandemic, supported by good monsoon and
agriculture growth. The scooter industry declined by 20%, with 4.5 Mn
units sold in 2020-21 over 5.6 Mn units in 2019-20. The category
share declined to 29.7% in 2020-21 from 32% in 2019-20. This was
primarily led by higher spread of CoVID-19 cases in urban areas,
stringent lockdown norms and implementation of work from home.
The motorcycle industry declined by 11% over last year. The category
share of motorcycle grew by 1.9% to 66.3% in 2020- 21. The premium
motorcycle sales declined by 14% from 1.61 Mn units in 2019-20 to
1.39 Mn units in 2020-21 maintaining category share at 9.2%. The
commuter motorcycle category share grew 1.5% to 51.5% while
volumes declined by 11% to 7.8 Mn units in 2020-21 from 8.7 Mn
units in 2019-20. In international market, two wheeler industry
declined by 7% in 2020-21 over 2019-20. Industry was adversely
impacted by the CoVID-19 related lockdowns of the demand markets
and also by supply side factors which impaired the speed to restore
export supplies due to CoVID-19 during Q1. However stable price of
crude oil, steady rates and availability of forex and continued growth
in Africa propelled the growth of exports in the remaining quarters of
2020-21.
Three-wheeler
Overall three wheeler small passenger industry (3 plus 1 segment)
declined by 41% in 2020-21 (from 7.46 lakh units in 2019-20 to 4.42
lakh units in 2020-21). Domestic industry declined by 77% and
exports market declined by 22% in 2020-21 over last year.

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 2. BUSINESS OUTLOOK AND OVERVIEW
Directors are optimistic about the future but are concerned about the
evolving CoVID-19 scenario across the country and it's effects on
consumer demand. The second wave of rising cases could adversely
impact customer sentiment, however a more measured approach, by
regulators, adopting more targeted, localized responses and increased
vaccination should see minimized disruption and a swift recovery in
the economy. Post normalization, it is also expected that travel and
tourism will bounce back in 2021-22 as most of the surveys indicate
customers willingness to travel once normalcy returns. This is likely to
result in a 10-11% growth in service sector. On the rural front, 202122
is likely to witness a normal monsoon and hence agriculture is
expected to grow by 3.5%-4%. Since much of the sale of two wheelers
are in semi urban and rural areas, two wheeler industry could see
some benefit from this. Despite the rising second wave of active cases,
the Company remains confident that adverse impact would be lower
and bounce back swifter. This outlook of cautious optimism is built
upon, on one hand, the Company's own supply chain preparedness
and on the other, a belief that the administrative responses would be
far more measured, targeted and widespread vaccination drive to
"Break the Chain". Social Distancing and Work From Home practices
will continue. These new long-term practices of social distancing could
see consumer preferences change towards personal mobility leading to
new demand in the Two wheeler industry. The Company is cognizant
of this opportunity, and well poised to leverage this opportunity with
its superior product offerings across the widest range of personal
mobility needs. Export of two wheelers is likely to see a growth during
the year fueled by consumption growth and stable economic & political
situation in all operating geographies. Stable crude oil prices will have
a positive impact on export market growth in oil dependent economies
of Africa and LATAM.

3. DOMESTIC SALES
The Company achieved sales of 21.6 lakh units of two wheelers in the
domestic market compared to sales of 24.1 lakhs in 2019-20. The
Company outperformed the broader Industry which declined by 13%.
In domestic motorcycles, Company achieved sales of 6.3 lakh units

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and registered a decline of 17% over 2019-20. The TVS Apache, grew
better than the Premium motorcycle industry with sale of 3.3 lakh
units, posting a decline of only 11% while the Premium Motorcycle
industry declined by 14% in 2020-21 against 2019-20. In domestic
scooters, Company achieved sales of 9.2 lakh units and registered a
decline of 10% over 2019-20. However, Scooters volume growth was
higher than Industry supported by product interventions in Jupiter
and launch of Super Squad edition in TVS NTORQ .

4. EXPORTS SALES - TWO-WHEELER AND THREE-WHEELER

The Company's two wheeler exports in 2020-21 were 7.64 lakh units
and witnessed an improvement with a growth of 12% over 2019-20.
Three wheeler exports during the year reached 1.15 lakh units and
recorded a decline of 29% over 2019-20.

5. RISKS AND CONCERNS

Domestic Business:
The Government has already started the vaccination drive and has
covered some of the vulnerable sections, frontline responders, senior
citizens and individuals with co-morbidities. The stated intent is to
inoculate 30% of the population by September. However, a widespread
second wave could result and contribute to delay of this plan. While, it
is expected that the response to the second wave will be very
measured, targeted and localized, there will be economic
implications / impact of the counter measures. This could include: 1.
Impact from the demand side: Consumption may take a hit. The
uncertainty of the date and speed of resolution, might further weaken
the overall consumer sentiment and affect demand. The severity of
impact is likely to be higher, at the lower to mid income level, who
form bulk of the commuter 2W consumers. 2. Impact from the supply
side: Labour reverse migration leading to non-availability of manpower
at tier-2 and tier-3 suppliers affecting the supply of parts and daily
operations. The transit per se of goods should not be impacted, but
some localized hubs may see lockdowns impacting productivity. The
Company has taken appropriate steps to minimize the impact of such
risks based on learnings from last year. 3. Semi-conductor availability:

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The increase in demand for consumer goods and unexpected growth in
auto sector had led to supply shortfall of semi-conductors and the lead
time for these goods have increased from 3 months to 18 months.
These semiconductors form a critical component in two wheelers too.
The shortfall of semiconductors is likely to continue and pose as a risk
in meeting the production demand.
International Business:
1. Container availability - Due to continued high traffic container
movement from China to North America and Europe post CoVID-19
outbreak, there has been shortages of containers at Indian ports. This
clubbed with increased exports from India is posing further shortage of
space availability or availability at higher costs. This situation is
expected to continue and result in delayed supplies to global
customers.
2. Some of the Company's target markets/countries might witness a
rapid spread of CoVID-19 second wave thereby lowering economic
activity. A sustained drop in commodity prices and exports could
reduce foreign exchange income in some of the export countries. The
effect of second wave is already seen in LATAM, Bangladesh and
Tanzania which are important export destinations. The Company has
looked at options to minimize the impact by leveraging opportunity in
less affected countries and by launching new products and leveraging
financing solutions for customers.
3. Country specific Socio economic political factors. The Company
keenly tracks progress of country specific factors which could impact
its ability to service its consumers like: a. Ban of two wheeler imports
in Srilanka - Sri Lankan Government banned import of all motor
vehicles (except special category of vehicles) since March 2020. This
import ban is put in place to preserve the foreign currency reserve. b.
Political turmoil in Myanmar: Exports from India and PT TVS,
Indonesia to Myanmar is affected due to the current political situation
there. This is expected to affect the exports.

6. Opportunities
The CoVID-19 pandemic is causing paradigm shifts in consumer
behavior affecting many industries including the automobile Industry.

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Social distancing norms followed across the globe due to CoVID-19,
could become the new normal. People may move away from use of
shared / public transport solutions. This changed preference would
lead to enhanced need for a personal mobility solution. This could
emerge as an area of opportunity for two wheelers. The move towards
alternative-energy based mobility solutions is needed and has been
receiving considerable policy support. In light of the revised priorities
post CoVID-19, the speed and extent of the policy support may alter,
modifying the rate of change. The Company will be closely studying
such factors and is well poised to leverage this space through
appropriate offerings across its wide stable of technology, products and
business solutions. The EV portfolio of the Company today has TVS
iQUBE which had been very well received in Bengaluru. The TVS
iQUBE was then launched in New Delhi as well, basis the strong
prelaunch online interest evinced by the customers from New Delhi.
Across its 2 cities there is a 8-week order-book and the Company is
looking to service the same expeditiously. Through the year, The TVS
iQUBE footprint will expand to 20 more Indian cities. The portfolio also
is set to expand to newer formats including a 3W version.

7. CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis Report
describing the Company's objectives, projections, estimates and
expectations may be "forward looking statements" within the meaning
of applicable securities laws and regulations. Actual results could
differ materially from those expressed or implied. Important factors
that could make a difference to the Company's operations include,
amongst others, Economic Conditions affecting demand/ supply and
Price Conditions in the Domestic and Overseas Market in which the
Company operates, changes in the Government Regulations, Tax Laws
and Other Statutes and Incidental Factors.

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 SWOT ANALYSIS OF TVS MOTORS

TVS Motor Company is an Indian multinational automobile company

specializing in the production of motorcycles, scooters and
threewheelers, headquartered in Chennai, India. It is one of the biggest
names in the automobile industry in India.

The major element which has contributed to the success of the

company is its smart marketing tactics. Marketing is essential for the
growth of any business, to know more about marketing and its digital
aspect, check out Free Digital Marketing Masterclass by Karan Shah,
the founder and CEO of IIDE.

In this blog, we’ll go through the TVS Motor Company’s strengths,

weaknesses, opportunities, and threats in-depth, but first, let’s learn a
little about the company.

TVS Motor Company, one of the major producers of personal vehicle

products, is a strong believer in incorporating environmental,
occupational health, and safety concerns into all business processes to
ensure employee and company well-being.

A one-year partnership between TVS and Suzuki focused on

technology transfer for the design and manufacture of two-wheelers
exclusively for the Indian market. The business was renamed
TVSSuzuki and released various vehicles, including the Suzuki Supra,
Suzuki Samurai, Suzuki Shogun, and Suzuki Shaolin.

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Services Provided by TVS Motor Company

Following are the services TVS provides their customers –

• Two-Wheeler
• Three-Wheeler
• Automobile Parts
• Vehicle Services

Competitors of TVS Motor Company

Some of TVS’s top competitors are as follows:

• Bajaj Auto
• Hero Motocorp
• Honda Motorcycles
• Kymco
• Suzuki

SWOT Analysis is a process of evaluating your company’s strengths,

weaknesses, opportunities, and threats. It allows you to maximize your
strengths, overcome your weaknesses, reduce risks, and increase your
chances of success. SWOT analysis helps corporate decision-makers to

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develop strategic plans according to the internal and external factors of
the company.
STRENGTHS OF TVS MOTORS

• Many Sub-brands – TVS offers motorcycles, mopeds, scooters,

three-wheelers and features popular brands across all categories.
Motorcycles, for example, include well-known brands such as
Apache RTR and Star City.
• Strong Financial Performance – In recent years, TVS has had a
strong financial performance. It recorded growth in revenue
(12.3%) and operating margin (4.8%) in 2016. As a result, the
company has improved its financial conditions, increased
shareholder value, and supported its growth plan.
• Excellent Research & Development skills – TVS Motor’s
strength lies in its extensive research and development process,
creating products that lead the industry in innovation TVS has
established a strong research and development department that
enables continuous innovation in the design of its products and
the inclusion of the latest technologies in its products.

• Differention: In comparison to competition TVS Motors has

always maintained a price differentiation strategy choosing to
offer economy two-wheelers which are also high on performance
and fuel efficiency.

• Focus on Local Market: TVS Motors won the trust and

confidence of the customer through their mopeds which primarily
targeted the local population.Even today the company relies
primarily on the local population for their business.

• Positioning: TVS Motors has always positioned their vehicles as

reliable and easy to use vehicles which can run on Indian terrain.
They are also well known for their string regional connect.

• Emotional Value: TVS has been able to connect emotionally with

the Indian audience primarily through their association with
moped which during the early days used to be the most popular
mode of transport in villages.

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 • Innovation: TVS Motors has been high on innovation and has a
lot of firsts to its credit.The company has always tried to stay in
tune with the latest trends in styling, performance and fuel
efficiency, while also being conscious about developing
environmentally friendly vehicles that strictly adhere to
compliance norms.
WEAKNESSES OF TVS MOTORS

• Lack of Scale – Although TVS has had a recent increase in

revenue, it still doesn’t stand out from big players like Bajaj Auto
and Hero MotoCorp. These companies have a big advantage over
TVS.

• Reliant on the Indian Market – India is the main market for

TVS engines, accounting for more than 75% of sales. TVS has
limited geographical diversity and is therefore too dependent on
the Indian market. Any downturn in the Indian market will have
an impact on the company’s finances.

• Low profitability: The company for the past few years have been
consistently registering low profitability and showing single-digit
margins in comparison to its competitors who are showing
doubledigit margins.
• Launch time: TVS Motors has faced criticism for the longer time
it takes to launch new vehicles. The company takes more time
than their competitors to introduce products into the market with
the result that the competitors get an upper hand over them
giving them less time to react.
• Limited Global Reach: TVS Motors in comparison to competitors
like Honda have limited global reach and most of their focus is on
domestic markets.
• Poor advertisements: TVS Motors have never been aggressive in
advertising their products with the result that their products do
not have the brans recall or recognition enjoyed by market
leaders like Bajaj which are household names in India.

OPPORTUNITIES OF TVS MOTORS

• Market potential: Research indicates that India is going to be

the biggest market in the world for two-wheelers, with a market

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 size of 48,000 units per day.This is going to be a huge
opportunity for two-wheeler companies.
• Improved roads: The central government in India has a plan for
the massive development of roads and related infrastructure in
rural India which will increase the demand for two-wheelers in
villages. TVS Motors which is already a popular brand due to
their mopeds will find it simple to capture this market.
• Change of trends: The growing number of dual-income
households, the increase in the need for smarter vehicle options
to beat the crowded city roads, and growth in rural infrastructure
are all trends that will result in a surge in two-wheeler sales.

• Growing Market – India has experienced rapid growth in the

2wheeler market, it is also expected that it will continue in the
near term. India is the world’s second-fastest-growing twowheeler
market. TVS will be able to capture the demand generated in the
process of this.

• Growing Indian Three-wheeler Market – In India, the

threewheeler passenger and load carrier business is expanding,
between 2005 and 2015, the three-wheeler industry grew at a
CAGR of 4.4 percent. TVS has an advantage as a result of this.
With multinational and national brands such as Yamaha, Bajaj
Auto, Honda, and Hero MotoCorp, India’s two-wheeler business
is fiercely competitive. TVS being subjected to such competition
must constantly innovate to thrive in such a fiercely competitive
atmosphere.

• Global Expansion – To capitalize on the favorable forecast for

the global motorcycle industry, which is predicted to increase at a
CAGR of 6.3 percent until 2019, TVS must look forward to
expanding operations globally.

THREATS OF TVS MOTORS

• Intense Competition – With multinational and national brands

such as Yamaha, Bajaj Auto, Honda, and Hero MotoCorp, India’s
two-wheeler business is fiercely competitive. TVS being subjected
to such competition must constantly innovate to thrive in such a
fiercely competitive atmosphere.

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 • Environmental Regulations – The company is subject to several
strict environmental standards that are constantly updated,
leading to rising compliance expenses.

• Improvement in Public Transport – In India, public

transportation is improving, posing a challenge to the passenger
automobile industry as a whole.
• Technology: Some of the emerging technology areas like
robotdriven cars, alternate energy vehicles, interconnected traffic
and safety systems may affect the sale of two-wheelers since
these are more adapted towards bigger vehicles. Moreover, people
may start preferring four-wheelers due to safety reasons as well.
• Competition: TVS Motors in spite of continuous attempts have
not been able to beat their two nearest rivals Bajaj Auto and
Honda Motor Corp for the past many years and continues to
retain its third spot only. This can be a threat to the business in
the long run as more new players make a foray into the lucrative
twowheeler market.

Conclusion

TVS Motor Company is one of the leading automobile industries in

India. It competes against companies like Yamaha, Bajaj Auto, Honda,
and Hero MotoCorp, etc. Therefore it must constantly innovate its
products to stay ahead of the competition.

Even though TVS’s revenue has increased in recent years, it still has a
long way to go. After Hero MotoCorp, Bajaj Auto, and Honda, it is just
the fourth-largest Indian motorcycle manufacturer. With India’s
growing two and three-wheeler market, TVS should try to grab this
opportunity and give its competitors a run for their money.

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 MARKETING MIX

Introduction to Marketing Mix

Every business organization has to determine its Marketing Mix for the
satisfaction of needs of the customers. Marketing mix represents a
combination of the marketing methods, devices and tools – product,
price, promotion and place. These elements are inter-related because
decision in one will usually affect actions in the others.
The 4P‟s were formalized and developed over the years by experts to
ensure the creation and execution of a successful marketing strategy.
Through the use of this tool, the attempt is to satisfy both the
customer and the seller. When properly understood and utilized, this
mix has proven to a key factor in a product‟s success .

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 According to William J. Stanton, “Marketing mix is the term used to
describe the combination of the four inputs which constitute the core
of a company‟s marketing system, the product, the price structure,
the promotional activities and the distribution system.” A successful
marketing strategy must have a marketing mix as well as a target
market for whom the marketing mix is prepared. The marketing mix
will be changing (naturally) according to changing marketingconditions
and also with changing environmental factors (technical, social,
economic and political) affecting each market.If the needs of the
customers change, the marketing mix will also be changed.

Types of Marketing Mix

Marketing mix is mainly of two types.
1). Product marketing mix – Comprised of Product, Price, Place and
Promotions. This marketing mix is mainly used in case of Tangible
goods.
2). Service marketing mix – The service marketing mix comprises of
Product, Price, Place and Promotions and has three further variables
included which arePeople, Physical evidence and Process.

But here in this unit we are going to discuss only the Product
Marketing Mix comprising of the 4Ps.
Significance / Importance of Marketing Mix
Marketing mix represents a blending of all the four elements namely
product, price, promotion and place /physical distribution.

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Determination of an effective marketing mix is an important decision
for any manager of an organization. If a proper marketing mix is
determined, the following benefits will accrue to the organization.

• Marketing mix helps in pursuing consumer-oriented marketing

as it serves as a direct link between the organization and its
customers thus focusing on the satisfaction of the customers.
• It helps in increasing the sales and earning higher profits.
• Marketing mix gives consideration to the various elements of
marketing system. There is a balanced relation between these
elements. For instance, the price of a product depends upon is 7
features and branding, packaging etc. The different media
required in promoting the product will depend upon the product
and its features. The channels of distribution will also depend
upon the nature, utility etc of the product.
• Marketing mix facilitates meeting the requirement of different
types of customers. Product design, pricing, promotion and
distribution will depend upon the needs and purchasing power of
the customers.
• Marketing mix signifies that its four elements are closely
interrelated. Decisions or changes in one element usually affect
decisions or changes in the other.

It was the marketer E. Jerome McCarthy who proposed a four Ps

classification in 1960, which has since been used by marketers
throughout the world. A good and easy way to understand the 4Ps is
by the questions that you need to ask to define your marketing mix.
Some questions that will help you understand and define each of the
four elements .
Product/Service :
The product is either a tangible good or an intangible service that is
seem to meet a specific customer need or demand. All products follow
a logical product life cycle and it is vital for marketers to understand
and plan for the various stages and their unique challenges. It is key
to understand those problems that the product is attempting to solve.
The benefits offered by the product and all its features need to be

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understood and the unique selling proposition of the product need to
be studied. In addition, the potential buyers of the product need to be
identified and understood.
Place/Distribution :
Place includes the distribution channels, the extent of market
coverage, managing inventories, transportation and logistics.
Availability of the product to the customers at the right time, right
place and in the right quantity are some crucial decisions in placement
of a product.Place or placement has to do with how the product will be
provided to or reach the customer. Distribution is a key element of
placement. The placement strategy will help assess what channel is
the most suited to a product. How a product is accessed by the end
user also needs to compliment the rest of the product strategy.
Distribution is of two types:
Direct distribution : Your business sells its products directly to
customers through channels such as retail stores, markets, the
internet, direct mail orders, door to door sales and catalogues.
Indirect distribution : Your business sells its product through some
form of middleman who sells the product on behalf of the business.
This may be through retailers (such as department stores),
wholesalers, agents (such as a real-estate agent) or a distributor.
Price :
Price covers the actual amount the end user is expected to pay for a
product. How a product is priced will directly affect how it sells. This is
linked to what the perceived value of the product is to the customer
rather than an objective costing of the product on offer. If a product is
priced higher or lower than its perceived value, then it will not sell.
This is why it is imperative to understand how a customer sees what
you are selling. If there is a positive customer value, than a product
may be successfully priced higher than its objective monetary value.
Conversely, if a product has little value in the eyes of the consumer,
then it may need to be underpriced to sell. Price may also be affected
by distribution plans, value chain costs and markups and how
competitors price a rival product.
Pricing strategy is an important part of the marketing mix. There are a
number of popular pricing techniques to choose from:

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1. Cost-plus pricing. A common way to make pricing decisions is to
calculate how much it costs to do a particular job or activity, and then
add on a given percentage as a return for the job or activity. This is
sometimes known as mark-up. For example, a business may decide
that to do a small repair job on a car, including use of
premises ,infrastructure, labor but excluding parts, etc, it will charge
Rs 100. The business works on the basis of making a return of 25% on
all the work that it does. It therefore charges the customer Rs 125.
2. Hour-based pricing. Many small businesses are able to work out
what their costs are on the basis of every hour of work they do, e.g. for
gardening, sign writing, photography, etc. The business owner is then
able to charge a standard rate per hour.
3. Penetration pricing. When a firm brings out a new product into a
new or existing market, it may feel that it needs to make quick sales in
order to establish itself and to make it possible to produce larger
quantities. It may therefore start off by offering the product at a low
price. When it sees that product has penetrated well in the market and
market penetration has been achieved, then he goes for price rise.
4. Skimming. When you bring out a new product, you may be able
to start off by charging quite a high price. Some customers may want
to be the first to buy your product because of the prestige of being
seen with it, or because they want to be associated with your product
before anyone else. Example mobile phones. Another example would
be an exclusive and unique dress could be sold initially at a particilar
price to wealthier customers. The next season, the price could be
lowered making it accessible to a less wealthy group of customers.
Later on, the dress could be mass produced and made available at low
prices to the mass market.
A premium price is an exclusive price charged for up market
products.
The marketing mix for a bank account might include:

• the product/service itself - the account and what the customer

can do with it - e.g. overdraft facilities, direct debit payment etc .
• the place - either online/ over the telephone or in a physical
location .

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• the promotion - for example attractive offers to students who
open the account when first going to university such as an
interest free loan, or money to buy books .
• the price - the rate of interest paid on positive balances and
charged on negative balances.

Promotion :

The marketing communication strategies and techniques of an

organization fall under the promotion. These may include
advertising, sales promotions, public relations, direct mail,
personal selling and internet promotion. All these have been
discussed briefly. Whatever the channel used, it is necessary for
it to be suitable for the product, the price and the end user it is
being marketed to. It is important to differentiate between
marketing and promotion. Promotion is just the communication
aspect of the entire marketing function.
1. Advertising:Is any non personal paid form of communication
using any form of mass media. For example on TV, Radio,
Billboard, Newspaper
2. Sales Promotion:Commonly used to obtain an increase in
short term sales. Could involve money off coupons or special
offers, loyalty cards, coupons, price promotions e.g. point of
sales, packaging promotions or web coupons.
3. Public Relations:This involves developing positive
relationships with the organization media public. The art of good
public relations is not only to obtain favorable publicity within
the media, but also involves being able to handle successfully
negative attention.
4. Direct Mail:Is the sending of publicity material to a named
person from an organization. The aim of direct marketing is to
create one to one relationships with the organizations target
market. Direct marketing can come in the form of post, e-mail,
telephone calls and mail order. The company usually contacts a
named person at the address.
5. Personal Selling:Selling a product service one to one. This
can either be done face- toface (door to door) or over the phone.

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6. Internet Marketing:The use of the web for the promotion of
products or services. This could be the firm advertising via the
use of banner ads, flash videos, or Google keywords. It is
becoming very popular among firms as a tool for promotion.

By using variations of these four components you have the ability

to reach to multiple consumers with in your target market.
Various elements of Marketing mix are interrelated and
interdependent. For example: A feature of any product will
depend on the price, but the price the customers can pay also
determines the product features. The choice of the channels is
determined by the nature of the product and its price. Similarly,
any promotional activity adds to the cost of the product; the
nature of product and its price also influence the kind of
promotion to be done.
Another easy and simple way to remember and learn the key
points in the elements of the Marketing mix can be done with the
help of diagram given below :

We can understand the concept of marketing mix with the help of the

example of TVS MOTOR: Marketing mix of TVS Motors

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 Marketing mix of TVS Motors

TVS Motors is the third largest automobile manufacturer in India next

to Hero Moto Corp and Bajaj auto. TVS motors is belongs to TVS group
which is $ 2.2 billion. It is the first company to produce indigenous
moped and enter into 100 cc two wheeler markets with collaboration
of Suzuki. The 19 year old relation with Suzuki was to engage in
technology transfer and design suiting to Indian market. In 2001, they
had a strain in relationship in continuing the joint venture which led
to a separation.
Product/ Product Strategy :

TVS motors broad product categories include Domestic range, Three

wheelers, International range.TVS motors is the only two wheeler
automobile which has its penetration all consumer segments. They
have products like Apache ATR which caters to sports segment, TVS
super XL to rural, Scooty pep to young and dynamic women, Flame
and Star City to working professional. Hence their product category
meets the needs from rural to urban life style. They also have their
presence in three wheeler segments. Recently they launched TVS Jive
which is first clutch free bike.

TVS caters to a wide range of automotive categories which include

mopeds (XL, Super XL, Super Heavy Duty, XL 100, XL 100 Comfort),
Scooters (TVS Scooty pep, Scooty zest 110, Wego 110, Jupiter),
Motorcycles (Sport, Start city +110, Victor 2016 Phoenix 125, TVS
Apache RTR 160, 180, 200 and 200 4V) and 3 wheelers (King), which
all come under the product strategy in the marketing mix of TVS
Motors. TVS has earnt a reputation of producing very innovative
solutions for its product lineup. It has innovated such products as TVS
50, India’s first two seater moped, Scooty, India’s first scooterette, TVS
Champ, India’s first Digital Ignition, Apache, India’s first bike to
feature Anti Lock Braking System, Jive, first bike in India without a
clutch, Wego, first scooter featuring Body balance technology, Victor,
first indegeniously developed Indian bike. So catering to mass markets
as well as young working professionals, smart independent women
and sports oriented youngsters, TVS has a wide range of products.

Price / pricing Strategy :

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TVS motor, a unit of TVS group is which is a 100 year old group is
known for its strong values. There pricing strategy varies according to
product category and the consumer segment. The pricing is often
economical pricing with focus on quality and Indian pricing values and
sentiments.

Strictly keeping in mind the sentiments and value of Indians, TVS

prices its products competitively, undercutting the competition in case
of Scooters, scooterettes, and entry level motorcycles. Traditionally
TVS has been known for its value pricing for its spare parts too, many
of which are used in its own products. Since buyers of these segments
have constantly changing needs, TVS uses survival strategy to remain
competitive. Thus, mostly the pricing strategy in the marketing mix of
TVS Motors is based on competition. The hotly contested Rs50000 to
Rs80000 segment sees a lot of entrants each year but TVS continues
to be profitable and drives home good sales because of its pricing
strategies. Through new tie ups with financial institutions and launch
of updated variants, TVS is able to attract customers without raising
its product prices.

Place/Distribution Strategy :

TVS motors have around 2000 country wide main dealer show rooms
and service stations attached to it. Manufacturing plants of TVS are
located at Hosur, Mysore, Nalagarh and Karawang in Indonesia. There
are also sub dealers who are engaged in selling multiple brands in
their show rooms with proper agreements.

TVS motorcycles have a strong distribution network. Boasting of an

extensive dealer network exceeding 2000 in most states of India, TVS
has presence which is bested only by competitors like Hero MotoCorp
and Bajaj. With manufacturing plants in Hosur, Nalagarh, Mysore,
Karawang, Indonesia. With a strong focus on rural markets, TVS as a
brand is etched in the memories of those living in outskirts and rural
areas and not just cities and tier 1 towns. The wide dealership network
is the place strategy in the marketing mix of TVS Motors, Licensed
showrooms apart from authorized dealerships also stock and sell TVS
vehicles, sometimes paired with finance and loan schemes.

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Service camps are also organized in the hinterland for even better rural
penetration and reach.

Promotions/ Advertising Strategy :

The promotional strategies involve placing brand ambassadors for each

product specific to geographic division (North India and South
India).Virat Kohli , Dhoni for North India, Actor Surya and Trisha for
south India. The promotional activities include dirt bike rally, MRF
super cross championship rally promotional events in Malls etc.TVS
motors majorly concentrates on rural markets.

TVS has been able to strengthen its brand in India with extensive
marketing. It has clearly understood its segmentation and positioning
and directs its promotional activities to specific target audiences. A
multi faceted strategy of communications with a strong online
presence helps it to gain leverage as far as back of the mind recall is
concerned. Good media relations, and carefully targeted advertising
campaigns as a part of the promotional strategy in the marketing mix
of TVS, further help build the brand to grow. Comprehensive
brochures, ATL advertising, standees, direct emailers etc all help boost
TVS sales. Hence, all these points summarize the marketing mix of
TVS Motors.

MARKET SEGMENTATION, TARGETING AND

POSITIONING

Introduction Whenever a producer decides to produce a product that

product may not be suitable for consumption of everyone. So for that
matter he asks his marketing manager to identify the target audience
for his product (the people who would need and buy his product) so
that all the marketing strategies/plans could be designed keeping in
view the needs of those specific people. That is why, when one goes to
a market to buy a product, one might find different types of products
for different types of people. For example, we have normal Coca-cola
for general public and Diet Coca-cola for health conscious and diabetic
people. Now the question arises, how is it done? This is done through

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the techniques of Segmentation, Targeting and then Positioning. First
of all, one should understand that the whole market consists of
different types of people with different tastes, preferences and
behaviours. This means that the whole market is heterogeneous and
catering to everybody‟s taste with one‟s product is practically
impossible. So the whole market needs to be broken into smaller units
or segments which consist of people with similar tastes and behaviour.
By doing so the marketer will also be able to focus better on his
particular target audience. This process is known as Market
Segmentation. Market segmentation cannot be done in isolation. It has
to be followed by „targeting the market‟ and „positioning the product‟.
Marketing targeting aims at evaluating and comparing the various
segments to see their attractiveness and deciding as to which segment
the marketer should focus. After the decision about target market has
been made, next step consists of positioning of the product in order to
place the product so that it occupies a distinct place in the market as
well as in the minds of the consumers.

The sequential relationship between segmentation (S), targeting (T),

and positioning (P), popularly called STP.
Middle-class people who want a bike that is stylish and
Segment gives a good mileage

Target
Middle class youth from the age bracket of 25-35
Group

Positioning Bikes which will bring a smile in the lives of customers

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 RECOMMENDATION
I want to suggest TVS MOTOR Pvt Ltd. to suggest
Human Resource to provide a meeting with student
weekly to ensure the welfare of the students. It is
important for ensuring the health, welfare and fitness
of students in the company. In fact, a lot of new
information can be obtained by the students. Besides
that, I expect the company will provide a suitable place
or room for trainees so that they can have a place to do
reports and communicate with other trainees for more

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knowledge. Moreover, I hope supervisors could improve
motivation session to trainees so can be more
competitive and motivated. This can improve trainees’
skills, general knowledge and expertise on certain
matters.

CONCLUSION

Along my training period, I realize that observation is a main

element to find out the root cause of a problem. Not only for
my project but daily activities too. Moreover, the project
indirectly helps me to learn independently, discipline myself,
be considerate/patient, self-trust, take initiative and the
ability to solve problems. Besides, my communication skills
are strengthening as well when communicating with others.
During my training period, I have received criticism and
advice from manager and trainers when mistakes were made.
However, those advices are useful guidance for me to change
myself and avoid myself making the same mistakes again.

I would like to once again appreciate everyone who has made my

On The Job training a superb experience.

BIBLIOGRAPHY

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 Wikimedia
Commons
has media
related to
TVS.

Wikipedia
has
quotations
related to
TVS.
▪ Official website
▪ TVS Press Library (Graphical timelines bike models)
▪ TVS Automobiles
▪ TVS Motorcycles

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