Factor Influencing on Purchase Decision of Two Wheeler-Bilal Luhar

ASummer Internship ProjectReport onFactor Influencing Purchase Decision of Two Wheeler in HimatnagarUndertaken atTVS MOTORS COMPANY LTDIN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF MASTER OF BUSINESS ASMINISTRATIONInGujarat Technological University

Under the Guidance of:Assi.Prof.Ankit ParekhSIM, HimatnagarSubmitted By:Bilal Sirajuddin LuharBatch:- 2011-13 Enrollment no:-117530592001

Submitted to:Samarth Institute of Management, HimatnagarAffiliated to Gujarat Technological University

Preface

Master of Business Administration (MBA) one of the most reputed professional course which includes both theoretical and practical training as a part of two year curriculum. Progress is the continuous process. We cannot stop at certain destination and declare that target has achieved.During my project, I carried out a research on the factors which influence the purchase decision of two wheeler in Himatnagar.This report helps in applying the entire theoretical concept into the real corporate world. It helps in the developing managerial skills using which I can convert abstracts into language in this regards. I had undertaken a project study on purchase decision of buyer in Himatnagar.I believe that this report surly helps to TVS motors company ltd for increase their sales volume.

AKNOWLEGEMENT

I would like to thank Mr. Arun Sharma, Area Manager-Sales, TVS Motor Company and Mr. Manish Shah, Area Manager-Service, TVS Motor Company for granting me a permission to prepare my project report. I am grateful to him for having taken time off his busy schedule and spoken to the concerned person to get me this Training.

I express my gratitude to the TVS Motor Company and Agwan TVS for giving me an opportunity to work for them. I thank all other staff members to guide me specially Mr.Islam Luhar owner of Agwan TVS Motors Pvt Ltd for supported me in the survey.

I also thank my College, Samarth Institute of Management to give me this opportunity to put the theoretical knowledge into practical knowledge that I am imparting from the MBA program. I thank Professor, Mr. Ankit Parekh Sir and our Head of Department Prof. Tushar Bhavsar Sir for guiding and supporting me throughout the course of Training.

I am also greatly Indebted to our other faculty members of our college, who was there to listen me and help me throughout this project, if I had any problem. They have been also so lenient.

At last, thanks to our friends and classmates for being so supportive.

Thank you.

INDEXChapterParticularPage no.

IPreface

IIAcknowledgement

1.Executive summary1

2.Indian Automobile Industry3

2.1The Indian Automobile Industry 2.2Indian Automobile Industry structure 45

3.Introduction of Two Wheeler Industry6

3.1. Introduction of two wheeler Industry3.2. introduction of Indian Two wheelers company3.3. Overview of two wheeler sector3.4. Evolution of two wheeler industry in India3.5. Market share of two wheeler automobile sector78101217

4.Introduction of Tvs motors company ltd19

4.1 Introduction of Tvs group4.2 Detail about Tvs Motors Pvt Ltd4.3 Other major companies of Tvs group202325

5.Major factors influencing consumer behavior27

5.1 Cultural factor5.2 Social factor5.3 Personal factor5.4 psychological factors28282930

6Literature Review31

6.1 Journal of Economics and Behavioral Studies Vol. 2, No. 3, pp. 108-116, Mar 20116.2 Consumer behavior towards two wheeler motor bikes.32

32

ChapterParticularPage no.

7.Research Methodology34

7.1 Objective of the research7.2 Type of research7.3 Research Plan7.4 sample Design7.5 Test and hypothesis7.6 Gender vise distribution7.7 Age vise distribution7.8 Occupation vise distribution7.9 Income vice distribution353536373739414344

8.Data Analysis45

8.1 Company vice Distribution8.2 maintenance-Various brand of two wheeler cross tabulation8.3 Factor Analysis8.4 Chi-square Analysis4749505357

9.Findings64

10.Limitation, Conclusion and Recommendations66

10.1 Limitation10.2 Conclusion10.3 Recommendation676869

11.Bibliography70

12.Annexure72

INDEX OF TABLE

Table no.ParticularPage no.

1.Gender vise distribution39

2.Age vise distribution41

3.Occupation vise distribution43

4.Income vise distribution44

5.Company vise distribution47

6.Cross Tabulation of Maintenance and company of the bike.49

7.Factor Analysis50

INDEX OF GRAPH

Graph no.ParticularPage no.

IMarket share 2010-1117

IIMarket share 2011-1217

1.1Gender vise Distribution-Pie39

1.2Gender vise distribution-Bar39

2.1Age vise Distribution-Pie41

2.2Age vise distribution-Bar41

3.1Occupation vise Distribution43

4.1Income vise distribution44

5.1Market share of Two wheeler company-Pie47

5.2Market share of Two wheeler company-Bar48

6.1Maintenance company of the bike cross tabulation49

Executive Summary

Executive SummaryPurchasing behavior of consumer is depend on factors and attributes of the product. Consumer always prefer their expectance product from where they will satisfied fully. If the companys perform is better than the Expectation of the customer, than the customers will satisfied from the company. But If the Performance is less than the Expectation, than the customer will defiantly dissatisfaction. In the Automobile Industry, all the companies are much focused to satisfy their customer because the satisfied customer will create good word of mouth publicity for you.

In MBA, I am planning to select marketing as my specialization subject so, needs to prepare a survey based project report. I have decided to prepare a report on Factors influencing on purchase decision of two wheeler in Himatnagar. The main objective to prepare this executive report is to know the factors which consumer consider while purchasing two wheeler in Himatnagar.

I surveyed over 200 consumer from Himatnagar. The most of market share is of Hero Honda(now HERO), Bajaj auto, and TVS. Hero Honda is market leader than Bajaj auto is market challenger while Tvs motors id market follower.

I also found the factors which consumer prefer most while purchasing two wheeler in this report. In this study. I also study the satisfaction level of their current two wheeler.

I also found the product awareness should be increase through Paper Adv and Television Adv because very less get information about Tvs new released brands from this popular media. Mostly the customers are come to know about TVS products by reference from friends & family and Dealer Showroom visit. Company should focus on the others media for build brand value and awareness.

This report cannot be possible without the immense support of the valuable respondents, Asst. Prof. Ankit Parekh and My loving Friends & Family.

Introduction of Automobile Industry

2.1. The Indian Automobile Industry

The Indian automobile industry is the tenth largest in the world with an annual production of approximately 2 million units. Indian auto industry, promises to become the major automotive industry in the upcoming years and the industry experts are hopeful that it will touch 10 million units mark. Indian automobile industry is involved in design, development, manufacture, marketing, and sale of motor vehicles. There are a number of global automotive giants that are upbeat about the expansion plans and collaboration with domestic companies to produce automobiles in India.

Background to the Automobile IndustryThe growth of Indian automobile sector can be divided into two phases

Pre-Liberalization: After independence, the Indian government closely protected the Indian passenger car market for a period of over four decades. Before 1990s, consumer have very limited choice with only a few major automobile manufacturers such as Hindustan motors premier automobiles ,and maruti udygo ltd. in 1991, the Indian economy went through major reforms ,which includes : Approval of foreign direct investment (FDI) in many sectors, including the automobile industry. Removal of industry and import licensing.

Post-Liberalization: After 1993 ,many global players entered the Indian market mainly through joint venture and collaboration .Hyundai, ford, general motors ,Toyota ,Honda ,are among them since then, 17 new ventures have come up in the last ten years. Over the last five years, the industry has growth at the rate of 14 percent. 9 million vehicles have been sold in year 2005-2006. Indian vehicles exports have growth at a rate of 40 percent in recent past.

The industry encompasses commercial vehicles, multi-utility vehicles, passenger car, two wheeler, three wheeler and components. Present, India is the: Second largest two-wheeler market in world. Fourth largest commercial vehicle market in the world. Eleventh largest passenger car market in the world and is expected to be the seventh largest market by 2016.

2.2. Indian Automobile Industry Structure

Introduction of Two wheeler Industry.

3.1. Introduction of Two Wheeler Industry

Throughout the centuries man has striven to expand his capabilities through the use of machine. His ever inventive mind has constantly dewised ways to use tool to increase his abilities to explore the world around him. To go faster, deeper, higher and further than before was it. Coupled with his need to find new thrills, new adventures and new modes of transportation, the invention refinement of the motorcycle seems an inevitable outcome.

It would seem that Michelangelo conceived of the bicycle as early 14th century. And his drawing shows a remarkable resemblance to he modern day bike. It had wheels of similar size and even pedals and chain. Albeit made without any apparent means of steering.

Through never built, it was a remarkably clever design, and early bicycle makers would have done well to study his concepts, there have, in fact been 4 machines built based on his drawing, attesting to the viability of his design.

It wasnt until 1869 that the first serious attempts were made to produce motor driven bicycles. These very first were powered by steam, and driven by leather belts or as in the case of the roper steam velocipede of 1869 by a system of levers attached to a crank on the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or motor bicycle, as it was the first to employ an internal combustion engine and was designed from the ground up to be motor powered. Designed by gottlibe Daimler it was powered by an Otto cycle engine producing about horse powers. Note this design again employed wooden wheels and Daimler dropped the twist grip controls from his 1877 design in favor of leavers on the frame.

In 1894, Hildebrand and Wolfmuller, France Worlds produce first motorcycle. It came with a 1428 cc water cooled four-stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production motorcycle was this entry built by the Metz Company, in Waltham, mass, it used an aster engine that was a French copy of the Metz Company, in Waltham, mass.

3.2 Introduction of Indian Two wheelers Company

Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth over the years. Now owing a bike has become a must for most Indians. Even if people own a car they prefer to have a bike as it is very economical and fuel efficient.

With the growth in the economy the demand for two wheelers is increasing over the years. It is one of the most dynamic industries today and with the increasing competition companies are bringing in new products with sophisticated technologies and innovative features to capture a major pie of the Indian market and its the consumer who is benefited from it..

With the availability of reduced consumer loans and high disposable income the Indian two- wheeler industry has perceived an exceptional growth over the past few years thereby making India the second largest market for two wheelers in the world only after China.

The motorcycle has now become one most popular mode of transportation among the Indian middle class families because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the Indian two wheelers.

Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj India.

The motorcycle industry in India has witnessed a tremendous change in the 90s with the invention of 4 stroke engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to make the motorcycle ride more comfortable, safe and user friendly and economical.

In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India:

Easy accessibility to cheap consumer loans The increase in the average income of the family. The reduction in duties and taxes. Continuous innovations in technology making the bikes economic and fuel-efficient. The first choice among youths and teenagers.

A Nations economy is well known from its transport system. For instant and rapid growth in economy, a well-developed and well-networked transportation system is essential. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry is very essential in Indian economy. Various types of vehicles are manufactured by the Automobile Industry. Indian Automobile Industry includes the manufacturing of trucks, buses, passenger cars, defense vehicles, two-wheelers.

The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc.

The automobile industry in the country is one of the key sectors of the economy in terms of the employment opportunities that it offers. The industry directly employs close to around 0.2 million people and indirectly employs around 10 million people. The prospects of the industry also has a bearing on the auto-component industry which is also a major sector in the Indian economy directly employing 0.25 million people.

All is not well with the automobile industry the world over currently with the slowdown that has gripped most of the major economies of the world. The gap between the manufacturing capacity volume and the assembly volume is growing by the day and has worried the manufacturers. This state of affairs has triggered a lot of cutthroat competition and consolidation in the industry. Cost reduction initiatives have come to be the in thing in the global industry today. Towards this direction, many automobile factories are being closed down.

The Indian automobile industry is a stark contrast to the global industry due to many of the characteristics, which are peculiar to India. The Indian automobile industry is very small in comparison to the global industry. Except for two wheelers and tractors segments, the Indian industry cannot boast of big volumes vis--vis global numbers.

3.3 Overview of two wheeler sector in India

The Indian two wheeler contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz.; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooterettes and step-thru's . In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25% , while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in propelling the demand for motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been taking away the share of scooters and mopeds in a 4.3 million two-wheeler market and surging ahead with its market share of 68%. The increasing demand from semi-urban and rural segments may have caused this positive shift towards motorcycles. Also, easy credit coupled with low interest rate regime, constrained personal transport, increasing income levels in middle class and higher aspirations of young people all seem to be the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been robust enough to counter the slow down and other factors constraining the overall business activity in the country. Also, rationalization of excise duty in the Union Budget 2002-03 had a positive impact on the demand for motorcycles. We also expect the motorcycles to continue to lead the two-wheeler segment like in all other Asian countries. Available forecasts suggest that this trend would continue for another couple of years and the industry would record nearly double-digit average annual growth up to 2006.

During the year, there have been important developments in two-wheeler industry. The competition has strengthened though there are hardly any new entrants into the industry. There is an increasing emphasis on price and this has led to cost cutting efforts all across the industry, thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity ranging from 100 to180cc bikes. We anticipate that many more new models will be launched during the year and provide customers plenty of choice at competitive prices.

Businesses cannot consistently grow at 25-30 per cent. Each business has a tendency to taper and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy.

The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Honda CD100 SS (best standard motorcycle segment); Hero Honda Splendor (best executive motorcycle segment); Bajaj Pulsar (best premium motorcycle segment); and

3.4.Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNCs and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand.

Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959.

Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And created the world's single largest two wheeler company and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India. Over 19 million Hero Honda two wheelers running on Indian roads today.

TVS Motors is the third largest company in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd.

Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in India since 1955 and providing latest technology in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan.

Honda motors of Japan is not a new name in the two wheeler scenario in the country, they were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world.Though Honda has come on its own on the Indian market yet it will be providing technological support to Hero Honda for the next ten years. Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motorcompany Japan eventually entered the Indian market with Honda Unicorn in 2004.

3.5 Market Share of Two Wheeler Automobile Sector:1. 2010-2011 Graph-I

2. 2011-2012Graph-II

Interpretation:-Here we have market share of various two wheeler company of India. In 2010-11 the market leader is hero Honda with market share of 48.21%. than after Bajaj comes with 25.76%, and after that there is Tvs, Suzuki, Yamaha, Honda with their market share of 14.12%, 1.27%, 3.44%, 7.20% respectively.In 2011-12 the definition is changed that is the market leader company hero Honda market share is decreased and reached at 39.12% but the market challenger take this opportunity and increase its market share and reached at 30.56% than after Tvs market share decrease quite and fixed at 13.97%, than after big change in the Honda two wheeler its market share is increased by more than 3% and reached at 10.37%.

INTRODUCTION OF TVS MOTOR COMPANY LTD

4.1 INTRODUCTION OF TVS GROUPTVS Group - 100 years young The TVS group has always been inspired by a century long mission and vision of its own destiny. It is not just a business but a way of doing business, which sets TVS apart from others.

Back in 1911, to the founder of the company, the ordinary ambitions of a bus fleet operator or a vehicle servicing business would not suffice. Rather, he wanted to create an enduring business led by a family of likeminded workers and managers united by a set of shared high principles.

Driven by this inspiration, the TVS group has today emerged as India's leading supplier of automotive components. Today the TVS Group is the largest automotive component manufacturer in India, with annual turnover of more than USD 4 billion. The group has over 30 companies employing a work- force of 40,000 people.

Underlying the success of the group is its philosophy of commitment to the cherished values of promoting trust, value and customer service. This was the personal philosophy of the Group's Founder Shri T V Sundaram lyengar, and it remains the overarching code by which the Group functions. Marketleadership and rewards of business have followed naturally.

Although the letters TVS represent the initials of our founder, T V Sundaram lyengar, to us within TVS they have always stood for Trust, Value and Service. The founder of the company embodied these values and set an example for all employees to emulate. TVS believes that the success of any enterprise is built on the solid foundation of customer satisfaction.

Continuous innovation and close customer interaction have enabled TVS companies to stay ahead of competition. Quality at TVS determines not only the end product but the systems, processes and operations at all levels. The first four companies in India, which have won the coveted Deming Prize, arefrom the TVS group.

Many firsts to the Automotive Industry in IndiaTVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation.

Ushering in the personal transportation revolution

1980 Launched TVS 50, India's first 2 seater 50 cc moped1984 First Indian company to introduce 100 cc Indo - Japanese motorcycles1994 Launched India's First indigenous scooterette (sub - 100 cc variomatic) - TVS Scooty1996 Introduced India's first catalytic converter enabled motorcycle, the 110 cc Shogun1997 Introduced India's first 5 speed motorcycle, Shaolin2000 Launched India's first 150 cc, 4 stroke motorcycle - The Fiero2001 Launched India's first fully indigenously designed and manufactured motorcycle.2004 Launched the revolutionary VT-I engine for the best in class mileage in TVS Centra2006 Launched TVS Apache - first bike to win 6 awards in a row2007 Apache RTR - first two wheeler in India to have racing inspired engine and features.2008 TVS Flame, TVS Scooty Electric Vehicle and Three wheeler TVS King launched.

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group.

A bike for anyoneTVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles.Motorcycles : (Apache RTR, Flame DS 125, Flame, Jive, StaRCity,Sports) Variomatic Scooters : (Wego, Scooty Streak, Scooty Pep+, Scooty Teenz)Mopeds : (TVS XL Super, TVS XL Heavy Duty)

Penchant for QualityThe Company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, NorthIndia and one at Indonesia. The company has a production capacity of 2.5 million units a year.

Innovation at the helmTVS Motor's strength lies in design and development of new products - the latest launch of 7 products on the same day seen as a first in automotive history. We at TVS deliver total customer satisfaction by anticipating customer need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is our continuous source of inspiration.

15 million smiles on the RoadTVS has always stood for innovative, easy to handle, environment friendly products, backed by reliable customer service. No wonder, then, that our 15 million customers on the road have a reason to smile.

4.2 Detail about Tvs Motor Company Ltd

NAME OF THE COMPANY TVS MOTOR COMPANY LTD

REGISTERED OFFICEJAYALAKSHMI ESTATES,8 HADDOWS ROAD, CHENNAI- 600 006

CONTACT NO.Phone no: 044-28272233E-mail id: [email protected] site: www.tvsmotor.in

ESTABLISHMENT OF THE UNIT The unit was established in year 1911

PRODUCT MANUFACTUREDRange of Motorcycles and Automatic Scooters

PLANTTVS motor company has four large plants:1. Hosur Plant2. Mysore Plant3. Himachal Pradesh Plant4. Indonesia Plant

TOTAL NUMBER OF EMPLOYEESSThere are 40, 000 employees working in the company

BANKERS1. STATE BANK OF INDIA2. Corporate Accounts Group Branch,3. Greams Road, Chennai - 600 006.4. STATE BANK OF MYSORE5. Industrial Finance Branch,6. Midford Garden Road, Bangalore - 560 001.

EXISTING MANEGMENT GROUP1. VENU SRINIVASAN -Chairman & Managing Director2. H. LAKSHMANAN -Director3. T. KANNAN -Director4. C. R. DUA -Director5. K. S. BAJPAI -Director6. R. RAMAKRISHNAN -Director7. PRINCE ASIRVATHAM -Director

MISSION & VISION OF THE TVS MOTOR COMPANY

TVS MOTOR COMPANY MISSIONWe 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 fulfillment and prosperity for employees, dealers and suppliers.

TVS MOTOR COMPANY VISIONTVS Motor will be responsive to customer requirements consonant with its core competence and profitability. TVS Motor will provide total customer satisfaction by giving the customer the right product, at the right price, at the right-time.

4.3 OTHER MAJOR COMPANIES OF TVS GROUP

1. TVS - Motor Company Limited: TVS Motor Company Limited is one of the largest two-wheeler manufacturers in India. It manufactures Motorcycles, Mopeds, Scooterettes and Scooters.

2. TVS Electronics Limited: TVS Electronics was incorporated in 1986 in collaboration with Citizen Watch Co. of Japan. The company manufactures a complete range of computer peripherals.

3. Axles India Limited: Axles India was promoted by Sundaram Finance, Wheels India and Eaton Corporation for the manufacture of axles for medium and heavy duty commercial vehicles in India.

4. Brakes India Limited: Brakes India is a joint venture between TV Sundram Iyengar and Sons Ltd. and Lucas Industries Plc., UK. The company manufactures braking equipment for automotive and non-automotive applications.

5. Sundaram Polymers Division: Sundaram Polymers Division manufacturesEngineering Plastic compounds for various applications.

6. Harita Finance Limited: Harita Finance Ltd is a finance company under the TVS Group. It deals in retail finance, hire purchase, leasing and bill discounting.

7. India Motor Parts and Accessories Limited: It is engaged in the distribution of automobile spare parts.

8. India Nippon Electricals Limited: It is a joint venture between Lucas Indian Service and Kokusan Denki Co Ltd., Japan. The company manufactures Electronic Ignition Systems for two wheelers and portable gensets.

9. IRIZAR TVS (P) Ltd: IRIZAR TVS (P) Ltd. is a joint venture between Sundaram Industries Ltd, Ashok Leyland Ltd and IRIZAR S. Coop of Spain. The company builds bus bodies for export and domestic market.

10.Lakshmi Auto Components Limited: The company is a subsidiary of TVS-Suzuki. It manufactures gears, crankshafts and connecting rods for TVS-Suzuki motorbikes and mopeds.

11.Lucas Indian Service: Lucas Indian Service is a wholly owned subsidiary of Lucas-TVS Ltd., engaged in the sales and service of auto-electricals and fuel injection equipment.

12.Lucas - TVS Limited: Lucas-TVS, a joint venture between Lucas Varity group, UK and TVS Group, is a leading manufacturer of auto electrical products and diesel fuel injection equipment in India.

13.Sundaram Brake Linings Limited: Sundaram Brake Linings is the leading manufacturer of brake linings in India.

Major Factors Influencing Consumer Behavior

5.1. Cultural Factors:Cultural factors exert the broadest and deepest influence on consumer behavior. The roles Played by the buyers culture, subculture and social class are particularly important.

CultureCulture refers to that complex whole which includes in it knowledge, beliefs, art or Anything man acquires as a member of society.

SubcultureEach culture consists of smaller subcultures that provide more specific identification and socialization for their members. Sub cultures include nationalities, religions, racial groups and geographic regions.

Social ClassVirtually all-human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different castes are reared for certain roles and cannot change their caste membership more frequently; stratification takes the form of social class.

5.2. Social Factors:

Reference GroupsA persons reference groups consists of all the groups that have a direct or indirect influence on the persons attitudes or behavior.

FamilyThe family is the most important consumer buying organization in the society and it constitutes the most influential primary reference group.

Roles and statusesA person participates in many groups, family, clubs, organizations etc. The persons position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status.

5.3. Personal Factors:

Age and stage in the life cycle People buy different goods and services over their lifetime. Taste in clothes, furniture and recreation is all age related. Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups as their target market.

Occupation and economic circumstancesOccupation also influences a persons consumption pattern. Product choice is greatly affected by economic circumstances; spendable income, savings and assets, debts, borrowing power and attitude toward spending versus saving.

LifestylePeople from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is the persons pattern of living in the world expressed in activities, interests and opinions. Lifestyle portrays the world person interacting with his or her environment.

Personality and self conceptEach person has a distinct personality that influences buying behavior. It is that distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Related to personality is self-concept or self image. Marketers try to develop brand images that match target markets self image.

5.4. Psychological Factors:MotivationA person has many needs at a given time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.PerceptionPerception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. How a, motivated person actually acts is influenced by his or her perceptions of the situation.LearningWhen people act they learn. Learning involves changes in an individuals behavior arising from experience. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and positive reinforcement.

Beliefs and attitudesThrough doing and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. The beliefs make up product and brand images and people act on these images.

Literature Review

6.1 Journal of Economics and Behavioral Studies Vol. 2, No.3, pp. 108-116, Mar 2011Factors Affecting the Consumers Decision on Purchasing Power*Sher Akbar, Abu Hassan Abu BakarSchool of Housing, Building and Planning,, University Sains Malaysia*[email protected]: The purpose of this study is to evaluate the determinants of decision making, purchasing motorcycles from students perspectives of University Sains Malaysia in Penang. The research model used in this study was adapted from Model of Buyer Behavior. This study shows three factors (product, price, and place) affected the consumers decision on buying motorcycles in Penang, Malaysia. The primary data were collected from 415 students of University Sains Malaysia, main campus, and analyzed by using statistical techniques, like Percentage, mean and standard deviation. The result has shown that the mention three factorswas significance in students decision on buying motorcycles. Most respondents have given importance to purchase the cheapest Motorcycles from competitors. The consumers give keen interest in shops distributing only Motorcycles and also respondents have an importance on Personal Relationship with owners/providers.

6.2 Consumer behavior towards two wheeler motor bikes.DR. K. MALLIKARJUNA REDDYAssociate Professor, Department of Business Management, Osmania University, HyderabadAbstract : The marketing concept is consumer oriented and the emphasis is more on the consumer rathr than on the product. The essence of modern marketing lies in building of profit along with creating meaningful value satisfaction for the customer, whose needs and desires have to be co ordinate with the set of products and production programmes. Therefore, marketing success an enterprise depends as its ability to create to create a community of satisfied consumers. All the business activities should be carried out in ways which are directed towards the satisfaction of the consumer needs.Consumer behavior is affected by a host of variable ranging from personal, professional needs, attitudes and values, personality characteristics, social economic and cultural background, age, gender, professional status to social influence of various kinds of exerted a family, friend, colleagues and society as a whole. The combination of these factors help the consumer in decision making further psychological factors that as individual consumer needs, motivations, perceptions, attitudes, the learning process personality characteristics are the similarities, which operate across the different type of people and influence their behavior.There are four major factors which influences on the buying behavior of consumer. Cultural factors Social factors Personal factors Psychological factos

So a study had been conducted on consumer behavior towards two wheeler motor bikes in the twin cities .i.e., Hyderabad and secunderabad with a sample of 100 consumers by selecting two wheeler motor bikes i.e., hero Honda, Yamaha and TVS bikes and data has been collected through structured Questionnaire.

Research Methodology

7.1 Objective of Research

Primary objective of Product:

To find out factors influencing purchase decision of two wheeler in Himatnagar.

Secondary objective of product:

To study the behavioral factors of consumers in motor bikes.

To analyze the impact of behavioral factors of consumers on choosing particular brand of Two wheeler To find out consumer satisfaction level

To find out the market share of different bikes in Himatnagar.

7.2 Type of Research Design

In this project I am going to use Descriptive research designDescriptive researchDescriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time.

7.3 Research PlanSources of Data-Primary - Primary data is one which is collected by the individuals for the purpose of specific in query or study. I surveyed Dealers, Consumers of two wheeler.Secondary- Catalogue and promotional document of various cement brands and Internet.

Research Approach-Basically there are two approaches in collection of primary data. Observation SurveyI have used survey in my research.Survey There are four methods by which data can be collected in a survey. The four methods are.1) Personal survey2) Mail survey3) Telephone survey and4) Computer survey.We have used Personal Survey.

Research Instrument-I have used Structured Questionnaire.

7.4 Sample DesignPopulationThe respondents living in Himatnagar and owning a two-wheeler have been considered as the population for data collection in this Study.

Sample SizeFor calculating sample size I have been take a error of 7%.by that a got a sample size of 200 for this study.

Sampling MethodThe sampling method is of non-probability, which is convenience sampling method.

Sample UnitConsumers of two wheeler from Himatnagar area are selected to study.

7.5 Test and Hypothesis

Managers can visualize the competitive structure of their markets, as perceived by their customers. Typically, data for mapping include customer perceptions of existing products (and new concepts) along various attributes, customer preferences for products, and measures of the behavioral responses of customers toward the products (e.g., current market shares).

The following data analysis tools were used for the primary data, which was collected using structured-closed ended questionnaire (see annexure).Factor AnalysisA method of quantitative multivariate analysis with the goal of representing the interrelationships among a set of continuously measured variables (usually represented by their intercorrelations) by a number of underlying, linearly independent reference variables called factors. Although the term factor analysis has come to represent a family of analysis methods, the two most commonly used approaches are the full component model, in which the entire variance of the variables (represented by unities inserted in the principal diagonal of the correlation matrix) is analyzed, and the common factor model, in which the proportion of the variance that is accounted for by the common factors (represented by communality estimates inserted in the principal diagonal) is analyzed.

Chi-Square AnalysisA test that uses the chi-square statistic to test the fit between a theoretical frequency distribution and a frequency distribution of observed data for which each observation may fall into one of several classes. The chi-square test statistic can be used to evaluate whether there is an association between the rows and columns in a contingency table. More specifically, this statistic can be used to determine whether there is any difference between the study groups in the proportions of the risk factor of interest. Returning to our example, the chi-square statistic could be used to test whether the proportion of individuals who smoke differs by asthmatic status. The chi-square test statistic is designed to test the null hypothesis that there is no association between the rows and columns of a contingency table.

7.6 Gender wise distributionTable-1

GenderTotal

MaleFemale

KindMoped295079

Bike1220122

Total15150201

Graph-1.1

Graph-1.2

Interpretation:- From table 1 we find gender wise distribution of Himatnagar area respondents. From Graph 1.1 we interpret that from total respondent there are 25% respondents are female respondents and 75% respondents are male respondents. In graph 1.2 y-axis indicates no. of respondents and X- axis indicates gender. From grapg 1.2 we can see that thire is 151 male out of them 122 has bike and 29 has moped and all 50 femalews have moped.

7.7 Age wise Distribution Table-2AgeTotal

18-25 year26-35 year36-45 yearmore than 46 year

GenderMale60621910151

Female34132150

Total94752111201

Graph-2.1

Graph-2.2

Interpretation:- From table 2 we find Age wise distribution Himatnagar respondents. From Graph 2.1 I interpret that from total respondent there are 46.77% respondents are from age group of 18-25, 37.31%are from the group of 26-35, 1.45% are from the36-45 and Remaining 5.47 are from more than 46 age group. In graph 2.2 Y axis indicates age and X axis indicate age group. From graph 2.2 we can see that the age group of 18-25 consist 60 males and 34 females, than in group 26-35 there is 62 males and 13 females, in group 36-45 thrie is 19 males and 2 females and in last group that is more than 46 age there is 10 mae and 1 female.

7.8 Occupation wise Distribution Table-3Total

OccupationGovernment employee13

Private employee45

Business72

Profession11

Student46

Housewife14

Total201

Graph-3.1

Interpretation:- From table 3 we can find the occupation wise distribution in himatnagar. In Graph 3.1 we can see that the 6.47% respondent are government employees, 22.39% age private employees ,35.82% are businessman, 5.47% are profession, 22.88% are students,and remaining 6.96% are housewifes.

7.9 Income wise Distribution Table-4Total

IncomeLess than 10000096

100000-20000065

200000-50000027

more than 50000013

Total 201

Graph-4.1

Interpretation:- From table 4 we can find the Income wise distribution in himatnagar. In Graph 4.1 we can see that the 47.76% respondents income is less than 100000, 32.34% Income is 100000-200000, 13.43% respondents income is 200000-500000 and in catagery og more than 500000 there is only 6.47% respondents. The majority is of less than 100000 income respondents.

Data Analysis

Reliability test:-

Descriptive Statistics

NMeanStd. DeviationSkewnessKurtosis

StatisticStatisticStatisticStatisticStd. ErrorStatisticStd. Error

Gender2011.25.4331.171.172-.635.341

Age2011.75.8551.048.172.482.341

Occupation2013.371.398.308.172-.930.341

Qualification2013.671.092-.608.172-.143.341

Income2011.79.910.959.172.011.341

Valid N (listwise)201

Interpretation:-In this reliablitity test we are going to anlysis that the data we are collocted through survy are reliable or not. In following result data are not reliable:Mean=0, Std.Deviation.=1, Skewness=0, Kurtosis=3 or more than 3But in this study mean is not 0, std. deviation is not 1 and skewness and kurtosis are not as par reject criteria. By this we can say that our data is reliable for this study.Now we can do further study.

Cross Tabulation8.1 Company wise Distribution Table-5GenderTotal

MaleFemale

CompanyHero Honda62567

Tvs121729

Hero (new)606

Yamaha10010

Bajaj32133

Honda192746

Suzuki505

Other505

Total15150201

Graph-5.1

Graph-5.2

Interpretation:- Table -5 shows the company wise distribution of this report. In Graph-5.1 we can see that various companys market share in himatnagar. As usal herohonda lead the market with 33.33% market share, at second position there is Bajaj with 16.42%and their after Tvs at 3rd position with 14.43% market share. In graph-5.2 we can see that male female propotion of various company in himatnagar. Mostly female prefere moped. In himatnagar thire is 2.49% market share of other brand like Mahindra two wheeler, Royal Enfild, Kawasaki etc..

8.2 Maintenance various Brand of bike cross tabulation:-

Table-6CostTotal

Less than 500500-10001000-15001500-20002000-2500More than 2500

CompanyHero Honda4515610067

Tvs168500029

Hero (new)3200016

Yamaha42310010

Bajaj1412520033

Honda2112742046

Suzuki2100025

Other0200125

Total1055426835201

Graph-6.1

Interpretation:- Table-6 saws the maintenance cost of various company. In graph-6.1 we can see that the cost wise distribution of various company in hero honda there is majority of less than Rs.500 maintenance cost, second position for honda at minimum cost of maintenance.

8.3Factor Analysis(Q-13)Reliability Statistics

Cronbach's AlphaN of Items

.73313

In this reliability test we can found that data are reliable or not. If result is greater than .60 than data is reliableIn this we get .733 that means this data is reliable.KMO and Bartlett's TestKaiser-Meyer-Olkin Measure of Sampling Adequacy..583

Bartlett's Test of SphericityApprox. Chi-Square304.839

Df78

Sig..000

Table-7 Rotated Component Matrix

Component

1234

Mileage.563

Power(c.c.).785

Technology.682

Maintenance.746

Pickup.520

Price 812.

Brand image.580

Design.817

Comfort.467

Style.485

Company image.587

Resale Value.792

Durability.625

Interpretation:-The result of KMO (.583) and bartletts test of sphericity (Chi-square 340.839 and significance 0.000) indicate that factor analysis done with the 13 attribute. Here the all the attribute are from the features of bike.KMO test is more than .50 than we can do the factor analysis further.

AttributeFactor LoadingImportance

Mileage.563

First Consideration

Price.812

Resale Value.792

Durability.625

Pickup.520

Highly Involvement

Technology.682

Style.485

Comfort.467

Brand image.580Selected choice

Design.817

Power.784

Maintenance.746Final consideration

Company image.587

Interpretation:-In this table we can see that there is for importance factor. By this analysis we can get this answer that is when consumer go for purchasing two wheeler than he/she fist consider in mileage, price, resale value, durability.After that the factor comes highly involvement in this the buyer highly involve in the purchase criteria like pickup, technology, style, comfort.The third and forth factor importance is for selected people and their must be a final consideration of the product. Mostly buyer cant think about it.

8.4 Chi-square Analysis 1.H0: Kind of two wheeler is independent than annual income. H1:Kind of two wheeler is dependent on annual income.

Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)

Pearson Chi-Square5.668a3.129

Likelihood Ratio5.8113.121

Linear-by-Linear Association.4231.516

N of Valid Cases201

Interpretation:- Here we can see the all analysis regarding this. In this the significant level is .129 which is greater than .05. So it means that the null hypothesis(H0) will be accepted. By this analysis we can say that there is no dependency between the kind of two wheeler and annual income.

2.H0: Engine capacity of two wheeler is independent than Gender. H1: Engine capacity of two wheeler is independent than Gender.

Chi-Square Tests





N of Valid Cases201

Interpretation:- Pearson chi-square significant is .433 that is greater than .05 that means the null hypothesis(H0) is accepted. By this we can say that engine capacity is independent than gender.

3. H0: Brand of two wheeler is Independent than occupation.H1: Brand of two wheeler is dependent on occupation.

Chi-Square Tests





N of Valid Cases201

Interpretation:- Brand of two wheeler used by the respondent is dependent on occupation or not that we analyze in this analysis. The significant level is.455 that is greater than .05 that means null hypothesis is selected. By this we can say that the brand of two wheeler is independent than occupation.

3.H0: Purchase decision maker is independent than Education Qualification.H1: Purchase decision maker is dependent on Education Qualification.Chi-Square Tests




Linear-by-Linear Association4.2751.039

N of Valid Cases201

Interpretation:- Null hypothesis indicates the independent between the purchase decision maker and the education qualification. Chi-square significant level is .093 that is greater than .05 it means null hypothesis is accepted. By this we can say that purchase decision maker for two wheeler is independent from education qualification.

4.H0: Purpose of using two wheeler is independent than the annual income of respondent.H1: Purpose of using two wheeler is dependent on annual income of respondent.ValuedfAsymp. Sig. (2-sided)




N of Valid Cases201

Interpretation:- In this analysis we are evaluate that the purpose of two wheeler is independent from income of respondent or not that we analyze in this. The significant level is more than .05 that is .337 that means null hypothesis is accepted. That means purpose of using two wheeler is independent than annual income of respondent.5.H0:Brand of the two wheeler is independent from age of respondent.H1:Brand of two wheeler is dependent on age of respondent.ValuedfAsymp. Sig. (2-sided)




N of Valid Cases201

Interpretation:- Here we can see that the significant level is .031 that is less than .05 that means alternative hypothesis is accepted. Now we can say that the brand of two wheeler is dependent on age of buyer.

Findings

Findings In this study I have find many of points or many factors that will useful for Tvs Motor company ltd In this report I have study about factors which consumer consider while purchasing two wheeler. There is a lack of technical knowledge among Himatnagar consumer about the two wheeler thats why they havent consider it much as other. Mostly in Himatnagar consumer preferred bike that has mileage. By this study I found that the first consideration of consumer is mileage, price, durability and most important resale value. Than the factor comes highly involvement in this consumer consider all the necessary factor of two wheeler i.e. pickup, technology, Style, and comfort. The third parameter is selected choice in this the consumer select their interested featured two wheeler. And final choice is of maintenance and company image that is not important for Himatnagar consumer as per this study From this study I have also found that the reference group play a lead role for purchasing two wheeler.

Limitation, Conclusion and Recommendation

10.1Limitation:- Research work was carried out in Ahmadabad city of Gujarat only; hence the finding may not be applicable to the other parts of the country because of social and cultural differences.

The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.

The views of the some respondent are biased therefore it may not be reflecting true picture.

Due to restricted sample size of 200 the conclusions derived cannot be generalized on a broader context.

10.2Conclusion:- Hero Honda has the maximum sale of two wheeler bike in Himatnagar and second rank followed by Bajaj Auto. For moped market leader is Honda and followed by Tvs. Mileage and resale value play key role in buying behavior of people of Himatnagar. Most of the youth prefer bike having engine capacity between 100-125cc as it gives the maximum average to their bike. Friend and family members are the major source for influencing the purchase of a new two wheeler. About 70% of consumers take their own decision to purchase a particular brand of two wheeler. Most for people use two wheeler as per their occupation. The consumer of Himatnagar very price conscious while purchasing a bike. Performance and price is the most important factor which influences the purchasing decision.

10.3Recommendation:- From this study I learn lots of about two wheeler industry. After this study I will recommend that tvs motor must focus on mileage and performance of the bike as well as moped. Company should plan for medium budget sport bike for the youth. Mostly consumer preferred brand bike thats why company should create brand instead of product. Tvs motors should for work their innovation and creation department because their technology and body balance concept create lots of consumer. Many people is unaware about the new launches of Tvs product thats for company should increase TV ad and Paper ad for consumer awareness. Many consumer purchased Honda active because of their preferred color is not available in Tvs Wego. Company should make it available for future.

Bibliography

Bibliography:-Books:- Marketing Research, Seventh Edition, Luck & Rubbin Marketing Management,13th Edition, Philip Kottler Business research methods, 9th Edition, Cooper Schindler Research Methodology, C.B.Kothari

Website:- www.tvsmotors.in, official website of Tvs motor company ltd www.fadaweb.com/itw_industry.html www.facebook.com/agwantvs

Magazines:- Business India Levin R. I and Rubin D.S, (2007) statistical management, 7th edition published by arrangement with Pearson education inc. and Dorling Kindersley publishing inc. Automobile New Trend by Mr. Narayan Basar(2011) Journal Of marketing, November addition.

Annexure

: Questionnaire : Respected sir/madam,My name is Bilal Luhar. I am a student of Samarth Institute of Management. As a part of our Summer Internship Project (SIP), I am conducting a research on Factors influencing on Purchase Decision of Two wheeler in Himatnagar. The information provided will be for the research purpose only and it will be kept completely confidential.Thank you.

DEMOGRAPHIC DETAIL:Name:-..Gender: - Male FemaleAge: - ..Occupation:- Government employee Private employee Business Profession Student Housewife Retired Other:-..

Education Qualification: Non metricSSCHSCGraduate Post graduateOther:--

Annual Income:Less than 1,00,0001,00,000-2,00,0002,00,000-5,00,000More than 5,00,000Q:-1 Do you have two wheeler?Yes NoQ:-2 Which kind of two wheeler do you have?MopedBikeQ:-3 which two wheeler have you purchased?NewSecond handQ:-4 Which companys two wheeler do you have? (Please select only one)Hero HondaTvsHero (new) YamahaBajajHondaSuzukiOther:-Name of Brand (Two wheeler):-

Q:-5 Since how long you ride two wheeler?Less than 2 year2 year - 4 year4 year 6 year6 year 8 yearMore than 8 years

Q:6 What is the engine capacity of your two wheeler?100cc100cc-125cc126cc-150cc151cc-180ccMore than 181cc

Q:-7 Do you share your two wheeler with whom? (Multiple choice)FatherBrotherUncleOtherSisterNo oneChildren

Q:-8 From where have you collected the information about your two wheeler?News paperTV or RadioFriendsFamilyOutdoor mediaOthers: -..

Q:-9 Who is decision maker for purchasing two wheeler in your family? (Please select only one)FatherBrotherSelfMotherSisterWifeChildren Other: -..

Q:-10 Main purpose of using two wheeler (Please select only one)BusinessSchool-collegeShoppingWanderingStyle iconOffice

Q:-11 How frequently you take your two wheeler for maintenance in a year?Less than 2 times2 times - 4 times4 times - 6 timesMore than 6 times

Q:-12 Approximate cost of maintenance per time?(Rupee)Less than500500 - 10001000-15001500-20002000-2500More than 2500

Q:-13 Attributes you would prefer in your two wheeler? (Please select one box for each attribute to indicate how important it to you)

AttributesImportant

High Medium Low

Mileage

Power(c.c.)

Technology

Maintenance

Pickup

Price

Brand image

Design

Comfort

Style

Company image

Resale value

Durability(life)

1Factor Influencing Purchase Decision of two wheeler in Himatnagar

Documents

Factor Influencing on Purchase Decision of Two Wheeler-Bilal Luhar