PROJECT REPORT

ON

BRAND PREFERENCE IN MOTORCYCLES WITH

SPECIAL REFERENCE TO TVS IN ANANTAPUR

A PROJECT REPORT
SUBMITTED TO THE

SRI. KRISHNADEVARAYA UNIVERSITY

ANANTAPUR IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE
OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

G.NARESH
ROLL NO: 603361

UNDER THE GUIDANCE OF

A. THIMMA REDDY, MBA (Ph.D)
(FACULTY GUIDE)
DEPARTMENT OF MANAGEMENT

DEPARTMENT OF MANAGEMENT STUDIES

ALLAGADDA INSTITURE OF MANAGEMENT SCIENCES
(AFFILIATED TO SRI KRISHNADEVARAYA UNIVERSITY)
2006-2008
ALLAGADDA
KURNOOL D.T

AIMS, Allagadda.
 DECLARATION

I here by declare that the project titled ”BRAND PREFERENCE IN MOTOR

CYCLES WITH SPECIAL REFERENCE TO TVE at MG BROTHRES TVS,
Anantapur, submitted to ALLAGADDA INSTITUTE OF AMANAGEMENT
SCIENCES, ALLAGADDA in partial fulfillment of the requirement for the award of
the degree of “Master Of Business Administration” is a bonafide research carried out
by me under the guidance of Mr. A. Thimma Reddy, faculty guide, Department of
Management studies, ALLAGADDA INSTITUTE OF AMANAGEMENT
SCIENCES, ALLAGADDA.

DATE:

PLACE:

(G.NARESH)

AIMS, Allagadda.
 ACKNOWLEDGEMENT

AIMS, Allagadda.
 ACKNOWLEDGEMENT

The satisfaction and euphoria that I feel after the successful completion of my project
would be incomplete if I did not mention the people who has able to guidance and
encourage crowned my efforts with success.

It is my privilege to express my gratitude and respect to all those who inspired and
helped me in the completion of this project.

I wish my thanks to Dr.K. RAJA REDDY Garu, Director of Allagadda Institute of

Management Sciences, Allagadda.

It is with great pleasure I acknowledge my deep sense of gratitude to Mr. A THIMMA

REDDY.MBA (Ph.d) (Faculty guide) project guide, to his guidance and valuable
suggestions offered during the course of the project.

On the company front I would like to express my sincere gratitude to EERANNA.K,

Manager MG BROTHERS TVS, ANANTAPUR for giving an opportunity to work in
their organization.

Last but not the least I extend my heartful gratitude to my parents and all my friends for
their encouragement and moral support.

(G.NARESH)

AIMS, Allagadda.
 PREFACE

This research study has been mainly undertaken in order to know the brand
preference in motorcycles with special reference to MG BROTHERS TVS in
Anantapur.

After collecting the required data for this research study through a detailed
survey of target audience and the distribution channel members in the trade, an in depth
analysis has also been carried out by applying various statistical tools and techniques
and the finding, inference and their interpretations along with certain feasible
recommendations and suggestions for further improvement are high lightened in this
research analysis.

AIMS, Allagadda.
 CONTENTS

1. Introduction (Industry profile)

2. Company Profile

3. Product Profile

4. Need for Study

5. Objectives of Study

6. Limitations of Study

7. Sources of Data

8. Research Methodology

9. Analysis and Interpretation

10. Findings

11. suggestions

12. Appendix

13. Bibliography.

AIMS, Allagadda.
 INTRODUCTION

AIMS, Allagadda.
 INDUSTRY PROFILE

The two wheeler industry has been going steadily over the years all over the
world. India is not an exception for that. Today India is the second largest manufactures
of two wheelers in the world. It stands next only to Japan and China in terms of number
of two wheelers produced and sold.

Until 1990 geared scooters dominated the two wheelers market so much so that
their sales equaled the combined sales of Motor cycles and Mopeds. Today the
customer preferences have shifted from geared scooters to motorcycles and also to an
extent to the premium end scooters. With rising fuel cost and more recently stringent
emission norms imposed by the government, there is a distinct consumer preference for
high efficiency.

Earlier the customer used to buy a two wheeler based on its reliability and price
comfort and utility were the two basic traits he needed in the two wheelers. Now with
the opening up of the economy and availability of new design and technology the
consumer is increasingly according greater priority to power and style.

An interesting trend is the shift in the reference towards Japanese designed two
wheelers as compared to the Italian designed machines. In the last one year the
motorcycle segment has consistently kept its growth chart intact and grown by 30%. Its
share is increasing year by year. Today motorcycles command 58% of total two wheeler
industries.

Hero Honda alone commands nearly half of the market shares that are 48%. A
key trend in the motorcycles segment has been the single-minded preference for 4
stroke engines in motor cycles.

AIMS, Allagadda.
 In India scooter manufacturing was started in the 1950’s by “APL” in
collaboration with “INNOCENTRE” of Italy, and in 1972 BAJAJAUTO began its
operations in collaboration with “PIAGGIO” of Italy. The name “BAJAJ” synonymous
with two wheelers but the scooters suffered from poor aesthetics low fuel efficiency and
difficulty in driving. The most effected have been those with Italian design, while
Japanese designs have actually gained. The decline of 16% shown by Italian design.
Scooters; like BAJAJ and LML in 20101-2002 continued further to 38% in 2002-2003
on the other hand Japanese designed scooters like KINETIC and TVS which showed a
growth of 15% in 2001-2002 almost doubled it to 27% in 2002-2003.

Scooters sales have seen a major in the last decade is so. While the Italian
designed scooters saw a negative growth of 38% during 2000-2001, the Japanese
designed vehicles like KINETIC and TVS grow by 27% during the same period. Even 4
stroke scooters have been unable to stem the tide of consumers growing preference doe
motorcycles. The whole moped segment which includes the scooters (below 100cc)
witnessed a decline last year. However it had largely to do with mopeds with large
wheels or the Italian designed mopeds.

For some time we have been hearing about cheap Chinese goods flooding the
Indian market. For some it has turned into big trouble but what is the business without
some thread. Indeed the whole two wheeler industry should look at it as a challenge and
join forces to over come this challenge.

Hero Honda is not unnecessarily perturbed by the cheap Chinese bikes, which
may floods the market for as it believes on Indian roads a bike needs have 3R’s –
reliability, resale value and ruggedness. On all these counts, Hero Honda motors scores
much higher than the Chinese competition

Indeed today’s some of Indian bikes are no more costly that the Chinese one’s
and are almost in same range. I could be a problem for the Chinese imports to beet the
India counterparts although such cheap variety will not last on Indian roads, with all the
potholes and ditches.

AIMS, Allagadda.
 Still the Indian two wheeler industry is confident that is quite capable of meeting
all challenges and over coming them. Hero Honda is the most buzzing word which can
be heard frequently in commercial bikes market. Hero Honda took many years to be in
number one position in market, at present, though it has faced many bottle necks and
struggles.

The company’s innovative functioning made it known to every body in India.

We can analyze its performance with its market share by comparing it with others like
BJAJA, LML etc.

MANUFACTURER 2005-06 2006-07 GROWTH (%)

HERO HONDA 3, 01,577 3, 14,567 4.31
BAJAJ AUTO 2, 72,271 2, 06,208 -24
TVS 1, 62,200 1, 15,097 -29.04

On January 25, 2007 TVS Motor Company recorded a growth of 8% and

reported a turnover of Rs. 952.98 crore for the third quarter ended December 2006
compared to Rs. 883.38 crore recorded for the corresponding quarter of the previous
year. The turnover in the 9-month period ended December 2006 was Rs. 2981.35 crores
compared to Rs. 2445.34 crores, recording a growth of 22%.

The product line of TVS are APACHE, STAR CITY, SPORT, VICTOR, VICTOR GLX,
SCOOTY TEENZ, SCOOTY PEP, PEP plus, TVS MAX 100.

In the present study title “Brand Preference towards TVS Motor Cycle”, all the
aspects with reference to nature of consumer and his attitude towards style of the bike,
mileage, his opinion towards after sales service, maintenance and opinion on the issue
that whether TVS products are suitable for rugged roads etc., have been studied
carefully.

AIMS, Allagadda.
 COMPANY PROFILE

TVS Motor Company has Established an e-business system, which maximizes

company values and profits through e-transformation.

With the establishment of ERP systems by SAP, all process of the company are
integrated across the manufacturing plants, suppliers, area officers and warehouses
India. All area and branch offices access the system via leased lines and VSAT.

The company has successfully rolled out a Dealer Management System (DMS) to help
in standardizing best practices in dealerships and CRM to improve interaction with
customers and product quality.

TVS Motor Company is a reliable partner providing customers with quality products
through an e-sales portal site and information exchange.

TVS was established in 1911 by Shri. T V Sundaram Iyengar. As one of India’s

largest industrial entities it epitomizes trust, value and service. Today, there are over
thirty companies in the TVS Group, employing more the 40,000 people worldwide and
with a turnover in excess of USD 2.8 billion.

With steady growth, expansion and diversification, TVS commands a strong presence in
manufacturing of Two-wheelers, auto components and computer peripherals. We
also have vibrant businesses in the distribution of heavy commercial vehicles passenger
cars, finance and insurance.

AIMS, Allagadda.
TVS Motor Company

TVS Motor Co. is the flagship company of the TVS Group. The TVS group was
established in 1911 by Sri T.V. Sundaram Iyenger. TVS group commands a strong
presence in manufacturing of two-wheelers, auto components and computer peripherals.
TVS Motor Company's first launch was 50 cc Moped TVS 50 in August 1980. It is the
first Indian company to introduce 100cc Indo-Japanese Motorcycles in India in 1984. It
was also the first Indian company to launch indigenous scooterette in India in 1994. It
has grown rapidly since it's beginning to become one of the prominent two-wheeler
manufacturers in India. Today TVS is a well-known brand in the field of bike
manufacturing. The manufacturing unit of TVS Motor is located at Hosur and Mysore.

Turnover:

On January 25, 2007 TVS Motor Company recorded a growth of 8% and reported a
turnover of Rs. 952.98 crore for the third quarter ended December 2006 compared to
Rs. 883.38 crore recorded for the corresponding quarter of the previous year. The
turnover in the 9-month period ended December 2006 was Rs. 2981.35 crores compared
to Rs. 2445.34 crores, recording a growth of 22%

Net Profits:

However, TVS Motor's net profit declined 63.1% to Rs 11.46 crore in Q3 December
2006 from Rs 31.06 in Q3 December 2005. Sales inched up 7.3% to Rs 935.41 crore in
Q3 December 2007 (Rs 871.40 crore).

Infrastructure

TVS Motor Company has one of the most extensive networks of over 500

AIMS, Allagadda.
dealers and 2500 service centers evenly distributed across the country.

Organization

TVS Motor Company is headed by Mr. Venu Srinivasan who is the Chairman
and Managing Director of the company.

FUTURE FOCUS

In the future, TVS Motor Company will be one among the top two 2-wheeler
companies in India and one among the top five 2-wheeler companies in Asia.

We will have profitable operations overseas, especially in Asian markets, capitalizing

on our expertise in the areas of manufacturing, technology and marketing. The
Company will hone and sustain its cutting edge of technology by constant
benchmarking against international leaders.

OBJECTIVES OF THE COMPANY

1. To make it a consistent high volume business.

2. Developing customer relation ship and loyalty.
3. Attain the position of “leadership” in all major institutions in the country.
4. To make institution sales a profit center in ling term.
5. Exploring new business opportunities/niche marketing.

AIMS, Allagadda.
 MILESTONES

1980- Indians first 2 seater 50cc Moped TVS 50, launched in August.

1984- First Indian co., to introduce 100 motorcycles in September.

1994- Launched first indigenous scooterette, TVS scooty in June.

1996- Introduced first catalytic converter enabled motorcycle, the 110cc showgun in

December.

1997- Launched India’s first 5-speed motorcycle, the shaolin in October.

2000- Launched TVS Fiero, India’s first 150cc, 4 stroke motorcycles in April.

2001- Launched TVS Victor, 4-stroke 110cc motorcycle, in August, India’s first fully

indigenously designed and manufactured motorcycle.

2004- Launched TVS Centra in January, a world class 4-stroke 100cc motorcycle

with the revolutionary VT-I engines, for bet in class mileage.

Launched TVS Star in September, a 100 cc motorcycle which is ideal for rough

terrain.

AIMS, Allagadda.
 PRODUCT

PROFILE

AIMS, Allagadda.
 TVS Stat City

Its stylish alloy wheels and sleek designed new exhaust are taking the breath away of
every biker. Other features like single touch ride switch shocks, extra grip tyres etc can
be very much helpful in riding this bike in any terrain.

Its powerful headlamp and useful parking light leave an additional impression on
buyer’smind.

Its new Roller Cam Follower (RCF) technology results in reduction of engine friction.
Its engine maintains the mileage of 102 kmpl.

IT IS FOUND IN DIFFERENT COLORS:

 Red
 Purple

AIMS, Allagadda.
  Black

TVS Stat City Specifications

ENGINE &TRANSMISSION

Type 4-Stroke
Cubic Capacity 99.7cc
Max. Power 5.50KW(7.5bhp)@7500rpm
Max torque 7.5 Nm@5000rpm
Bore X Stroke 51.0 x 48.8
Compression Ratio 9.51:1
Transmission 4 speed constant mesh

CHASIS & SUSPENSION

Front Telescopic hydraulic fork (110mm stroke)

Rear Spring-loaded hydraulic shocker (78mm stroke)

BRAKES & WHEELS

Tyre (front) 2.75*18

Tyre (rear) 2.75*18
Brake (front) 130mm
Brake (rear) 130mm

ELECTRICALS

Head Lamp 12v, 35/35w

Tail Lamp 12v, 10w
Turn signals 12v, 10w
Ignition System A/C Digital CDI

DIMENSION & WEIGHT

Wheel base 1250mm

Dry Mass Weight 104kg

CAPACITIES

Fuel tank 16 ltrs

Fuel Reserve 2.5 ltrs

AIMS, Allagadda.
 TVS Star Sport

With the excellent body graphics, TVS star sport comes with VTi engine. Its
digitally controlled ignition timing and temperature sensors ensure its reliability and
fuelefficiency.

Its better mileage is the result of fuel wastage reduction system and friction
reduction technology. Power and economy indicator can be said as the mileage
controller.

Its mesmerizing body lining, stunning muscular fuel tank, stylish trapezoidal MFR
headlight accentuates the creativity of the manufacturers along with their
technicalexpertise.

Its methodically designed ergonomic seats and 5 step rear shock absorbers give
complete guarantee of comfortable and smooth riding.

IT IS FOUND IN DIFFERENT COLORS:

 Blazing Red

AIMS, Allagadda.
  Deep Black
 Teitian Blue

TVS Star Sport Specifications

ENGINE &TRANSMISSION

Type 4-Stroke
Cubic Capacity 99.7cc
Max. Power 5.50KW(7.5bhp)@7500rpm
Max torque 7.5 Nm@5000rpm
Bore X Stroke 51.0 x 48.8
Compression Ratio 9.15:1
Transmission 4 speed constant mesh

CHASIS & SUSPENSION

Front Telescopic hydraulic fork (110mm stroke)

Rear Spring-loaded hydraulic shocker (79mm stroke)

BRAKES & WHEELS

Tyre (front) 2.75*18

Tyre (rear) 3.00*18
Brake (front) 130mm
Brake (rear) 130mm

ELECTRICALS

Head Lamp 12v, 35/35w

Tail Lamp 12v, 10w
Turn signals 12v, 10w
Ignition System A/C Digital CDI

DIMENSION & WEIGHT

Wheel base 1250mm

Dry Mass Weight 99kg

CAPACITIES

Fuel tank 12 ltrs

Fuel Reserve 2 ltrs

AIMS, Allagadda.
 TVS Victor GLX

Its
125 cc VT-i
engine
delivers
power of 10
bhp (7.36 kw) and mileage of
85 kmpl. This fuel economy duralife engine is highly temperature sensitive which
is helpful in sensing the low temperature of the engine. Accordingly engine active-ates
spark plug and advances the ignition timing.

This bike is equipped with various high end designs which include digitally
designed petrol tank with knee recess, twin pod instrument panel with Econometer, fuel
gauge, trip meter and tachometer etc.

Its comfort feature comprises triple rated 5 step adjustable rear and telescopic
front shock absorbers which result in synchronized suspension.

IT IS FOUND IN DIFFERENT COLORS:

GLX Red
GLX Blue
GLX Black Silver

AIMS, Allagadda.
 TVS Victor GLX Specifications

ENGINE &TRANSMISSION

Type 4-Stroke, air-cooled OHC

Cubic Capacity 124.8cc
Max. Power 7.36 KW (10bhp)@7500rpm
Max torque 9.8 Nm @ 6000rpm
Bore X Stroke 54.5 mm x 53.5 mm
Compression Ratio 9.2:1
Transmission 4 speed constant Mesh

CHASIS & SUSPENSION

Front Telescopic Oil-damped; 105mm travel

Rear Gas Filled shock Absorbers with co-axial spring;
75mm travel, with 5-Strp adjustable Preload

BRAKES & WHEELS

Alloy Wheel with Drum brake Version

Tyre (front) 90*90*17

Tyre (rear) 3.0*18
Brake (front) 130mm Drum
Brake (rear) 130mm Drum

ELECTRICALS

Head Lamp 12v, 35/35w Halogen bulb

Tail Lamp 12v, 10w
Turn signals 12v, 10w
Ignition System Digital Ignition

DIMENSION & WEIGHT

Wheel base 1260mm

Dry Mass Weight 122kg

CAPACITIES

Fuel tank 13 ltrs

Fuel Reserve 2.5 ltrs

AIMS, Allagadda.
 TVS Apache

TVS Apache RTR with its shapely streamlined tank and engine design is really an
eye -stopper. Its smooth and flawless finish makes this bike desirable to the market.

Its tough but light 6 spoke black alloy wheels with red rims are really supportive for
better control and excellent riding of this two wheeler. Its uniquely designed head lamp
and turn signal lamps has become one of the best head turner in the market of two-
wheeler.

It has a uniquely alloy finished one piece brake pedals and levers that makes your
drive an safe one on any sort of tarmac. The bike has an extraordinary racing stripes,
luminous rims and race crouch mirrors that evokes the fantasy of any speed freak. Its
aluminum foot pegs, split grab rails at the rear along with the silencer canister and beat
gives it a complete touch of perfection.

It comes in various exciting colors:

 Yellow
 Black silver
 Red
 Matt gray

TVS Apache Technical Specifications

AIMS, Allagadda.
ENGINE &TRANSMISSION

Type 4-Stroke
Cubic Capacity 147.5cc
Max. Power 9.95 KW/(13.5bhp)@8500rpm
Max torque 12.3 Nm@6000rpm
Bore X Stroke 57 mm x 57.8
Compression Ratio 9.5:1
Transmission 5 speed constant mesh
Power to weight ratio 101.16 bhp / ton
Starting Electric & kick Start
Ignition IDI-dual mode digital ignition

CHASIS & SUSPENSION

Type Double Cradle

Front Telescopic fork (105mm stroke)
Rear Monotube Inverted Gas filled shox (ES)

BRAKES & WHEELS

Tyre (front) 90/90 X 17

Tyre (rear) 100/80 X 18 (ES), 90/90 X 18(ks)
Rim size (Front) Alloy 1.85 X 17
Rim size (Rear) alloy 2.15 X18 (ES), 1.85 X 18 (KS)
Brake (front) 240 mm Disc (ES), 130 mm Drum (KS)
Brake (rear) 130 mm Drum

ELECTRICALS

Battery 12V, 9.0 Ah(ES), 5.0 Ah (KS)

Head Lamp 35/35 W Halogen HS1,
Clear lens with MFR
Tail Lamp 5W
Turn signals 21W
Turn signal lamp 10 W

DIMENSION & WEIGHT

Wheel base 1260mm

Kerb Weight 136kg

CAPACITIES

Fuel tank 16 ltrs

Fuel Reserve 2.5 ltrs
TVS Scooty

AIMS, Allagadda.
TVS Scooty

TVS Scooty has come up with all the salient features which are really essential for good
scooterettes. It is available with several features which are truly required to make the
riding safer and secured. Its variants are found in different colors and many different
technical specifications .

AIMS, Allagadda.
 TVS Scooty Teenz Specifications

ENGINE

Type Single cylinder, forced air cooled,

2 stroke petrol engine
Bore & Stroke (mm) 42.6 & 42.0
Displacement 59.9
Max. Power 2.57 kW (3.5 BHP) @ 5500 rpm
Torque (Nm) 4.5 Nm @ 5000 rpm

DIMENSIONS

Wheel base (mm) 1220

Kerb weight (kg) 82
Brake drum front (mm) Dia 110
Brake drum rear (mm) Dia 130
Ground clearance (mm) 140
Tyre size FR & FR (inches) 2.75” X 10” – 4 PR
Fuel tank capacity Full
/ Reserve (ltr.) 4.5 / 0.75

ELECTRICALS

Ignition System Analog AC CDI

Head Lamp 12V, 35/35 W
Tail Lamp 12V, 21/5 W
Turn Signal Lamp 12V, 10 W
Battery 12V, 5Ah

DRIVE

Clutch Auto centrifugal clutch

Drive Variomatic V belt transmission and
Gear reduction

AIMS, Allagadda.
 TVS FLAME

TVS Flame
The bike that can set the tarmac afire and catch the fantasy of any bike lover is all
ready to grace the surface of Indian roads. It has been styled and decked with all the
features that one could have only dreamt of. It consists of Delta edge Exhaust, Dual
Lens Tail Lamp that promises better visibility, Digital Speedometer and so on.
Extremely captivating in looks, this one can be any buyers' first choice.

Along with this, the bike has been embedded with Delta edge Trafficators with
aerodynamic design, LCD Digital Speedometer that has been integrated with fitness
check. The bike delivers an outstanding performance while having 125 cc, 3 valve CC-
VTI Engine that gives out a 10.5 bhp @8250 rpm.

It goes in sync with the international standards of style and technology thus
becoming the desire of every modern buyer. It has been stylized on the patterns of Delta
Wings that is found in the latest fighter jets. The Delta edge Exhaust ensures the
smoothest sound, low emission and outstanding performance.

AIMS, Allagadda.
 TECHNICAL SPECIFICATIONS OF TVS FLAME

DIMENSIONS & WEIGHT

Wheelbase (mm) 1320

Length (mm) 2030
Width (mm) 760
Height (mm) 1070
Weight (kgs) 121

ENGINE

Model Designation CC-VTi, 04 Stroke

Clutch Multi-Plate Wet type
Displacement (cc) 124.8
Gear Box 04 Gear Constant Mesh
Bore & Stroke 54.5 X 53.5 MM

SUSPENSION

Front Telescopic Hydraulic Fork

Rear Twin tube 05 step adjustable gas filled.

BRAKES

Front Disc 230 dia

Rear Drum 130 dia

TYRES

Front Mag Alloy 90 x 90 x 17

Rear Mag Alloy 90 x 90 x 18
Fuel Tank (In Liters) 8

PERFORMANCE

Max. Horsepower (ps/rpm) 7.7 KW @ 8250 RPM

Max. Torque (kg m/rpm) 10 NM @ 6250 RP

AIMS, Allagadda.
 BRAND

Brands were originally developed as labels of ownership: name, term, design,

symbol. However, today it is what they do for people that matters much more, how they
reflect and engage them, how they define their aspiration and enable them to do more.
Powerful brands can drive success in competitive and financial markets, and indeed
become the organization's most valuable assets.

Brand Equity

Brand equity measures the total value of the brand to the brand owner, and
reflects the extent of brand franchise. The term brand name is often used
interchangeably with "brand", although it is more correctly used to specifically denote
written or spoken linguistic elements of a brand. In this context a "brand name"
constitutes a type of trademark, if the brand name exclusively identifies the brand
owner as the commercial source of products or services. A brand owner may seek to
protect proprietary rights in relation to a brand name through trademark registration.

Brand monopoly

In economic terms the "brand" is a device to create a monopoly—or at least

some form of "imperfect competition"—so that the brand owner can obtain some of the
benefits which accrue to a monopoly, particularly those related to decreased price
competition. For example, the Coca Cola Corporation will probably never have a
monopoly on cola-flavored soda pop, but it can have a monopoly on its own brand of
cola-flavored soda pop. In this context, most "branding" is established by promotional
means. There is also a legal dimension, for it is essential that the brand names and
trademarks are protected by all means available. The monopoly may also be extended,
or even created, by patent, copyright, trade secret (e.g. secret recipe), and other sui
generis intellectual property regimes (e.g.: Plant Varieties Act, Design Act).

AIMS, Allagadda.
Brand extension

An existing strong brand name can be used as a vehicle for new or modified
products; for example, many fashion and designer companies extended brands into
fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses,
furniture, hotels, etc. Mars extended its brand to ice cream, Caterpillar to shoes and
watches, Michelin to a restaurant guide, Adidas and Puma to personal hygiene. There is
a difference between brand extension and line extension. When Coca-Cola launched
"Diet Coke" and "Cherry Coke" they stayed within the originating product category:
non-alcoholic carbonated beverages. Procter & Gamble (P&G) did likewise extending
its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid and Fairy
Automatic) within the same category, dish washing detergents. These are examples of
line, not brand extensions.

Multiple brands

In a market fragmented with many brands, a supplier can choose to launch new
brands apparently competing with its own, extant strong brand (and often with an
identical product), simply to obtain a greater share of the market that would go to minor
brands. The rationale is that having 3 out of 12 brands in such a market will give garner
a greater, overall share than having 1 out of 10 (even if much of the share of these new
brands is taken from the existing one). In its most extreme manifestation, a supplier
pioneering a new market which it believes will be particularly attractive may choose
immediately to launch a second brand in competition with its first, in order to pre-empt
others entering the market. Individual brand names naturally allow greater flexibility by
permitting a variety of different products, of differing quality, to be sold without
confusing the consumer's perception of what business the company is in or diluting
higher quality products.

AIMS, Allagadda.
Once again, Procter & Gamble is a leading exponent of this philosophy, running as
many as ten detergent brands in the US market. This also increases the total number of
"facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to
keep the very different parts of the business separate—from Sara Lee cakes through
Kiwi polishes to L’eggs pantyhose. In the hotel business, Marriott uses the name
Fairfield Inns for its budget chain
BRAND PREFERENCE

Managers in many technology product-markets are faced with a variety of

challenges. One challenge is to monitor changes in consumer’s brand preferences over
time. In practice, intrinsic brand preferences can be inferred from tangible performance
measures such as sales after accounting for the effects of other factors that may have
influenced these measures. Given the rapid introduction and withdrawal of models in
these markets, one needs to, while measuring the dynamics in brand preferences, partial
out the effect of the changing portfolio of models on a brand’s performance.. Besides
monitoring these preference changes, managers are also interested in understanding the
drivers of preferences over time. Hence, managers may be interested in understanding
the role of advertising in driving the dynamics of brand preferences. A second issue of
interest to managers is to understand what drives the changes in a brand’s performance
over time. Given that the markets for technology products evolve rapidly, we usually
observe some interesting dynamics in the performance of the key brands. As noted
previously, one possibility is that changes in performance are tied to changes in
intrinsic preferences. At the same time, they could also be due to (a) the changing
portfolio of models in a brand’s product line; and / or (b) modifications in the attributes
and prices of the models in the product line. This calls for an assessment of the relative
influence of product line and intrinsic brand preferences on the performance of brands
in a category. Such an assessment, will guide managers on which aspect to emphasize in
order to improve their brand’s performance.. Hence, brand-level preferences are driven
by the inclusive value across models as well as the intrinsic preferences for each of the
brands. To allow for time-varying intrinsic preferences at the brand level, we use a
state-space model based on the Kalman filter. This Kalman filter component captures
the dynamics of the intrinsic brand preferences as influenced by marketing actions such
as advertising.

AIMS, Allagadda.
 In this way we allow for changing brand preferences and can also understand the
role that advertising plays in driving these preferences. While the brand level of the
model captures the dynamics in the inclusive value and the brand preferences, the
model choice part evaluates the tradeoffs consumers make between different attributes
and thus enables us to quantify the consumer valuation of these attributes. Over all, we
find that the effect of the dynamics in the intrinsic brand preferences is higher than the
corresponding effect of the dynamics in the product line for all the brands.

AIMS, Allagadda.
 NEED FOR THE STUDY

There exists a severe competition in the automobile industry, especially in two

wheeler sector. All the companies are trying to get dominant market share and new
models are introduced into the market with new features.

The company wants to know the preference level of their customer and gauge
the future expectation. The company wants to know the brand preference in the
motorcycles with a special reference to tvs, to lead them in product design, the
modification of product attributes and consequent benefits to the user, with reference to
the models on offer as well as now models

AIMS, Allagadda.
 OBJECTIVES

AIMS, Allagadda.
 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVE:

1. To identify features responsible for brand preference in TVS motor bikes.

2. To analyze the customer perception towards TVS Motorcycles.

SECONDARY OBJECTIVE:

1. To know which bike is associated with least maintenance cost.

2. To know the customer important consideration while buying a bike.

3. To know the customer rank of preference of TVS product, attributes and

benefits.

4. To know opinion about the overall performance of the manufacturers of

motorcycles.

5. Any suggestions.

LIMITATIONS:

1. This survey was limited to Anantapur town only.

2. The time allotted for the project was 3 months.

3. Unwillingness to provide information by some customers.

4. Due to bias respondents, the information that has been collected might be

biased, which might lead to biased conclusions.

5. This study covers the sample size of 100.

AIMS, Allagadda.
 SOURCE OF DATA

The task of data collection begins after a research problem has been defined.
There are two types of data which are useful in collection of data. The primary data are
those which collected a fresh and the first time and thus happen to be original in
character.
The secondary data, on the other hand, those which have already been collected
by some one else and which already been passed through the statistical process.

Collection of Primary Data:

The researcher can obtain the primary data either through observation or through
direct communication with respondents in one from of another or through personal
interviews. There were several methods useful in collecting primary data.
Important ones are:
1. Observation Method
2. Interviewing Method
3. Through Questionnaires.

Collection of Secondary Data:

Secondary data means data that are already available that is they refer to the data
which have already been collected and analyzed by some one else. The sources of
secondary data can be given as under.

1. Various publications of the central, state and the local governments.

2 Various publications of foreign government or international bodies and
their subsidiary organizations.
3. Technical and trade journals.
4. Books, magazines and news papers.
5. Reports and publications of various associations connected with
business and industry, banks, stock exchanges etc.

AIMS, Allagadda.
 In my study I have used both primary and secondary data. For primary data
collection I have prepared a questionnaire consisting of both open end and closed end
questions. Questions are prepared in such a way that maximum information can be
obtained from the respondent. Each questionnaire consists of 19 questions.

For secondary data used past data, net with experienced persons in this field
and referred company website http://www.TVSmotors.co.in

AIMS, Allagadda.
 RESEARCH METHODOLOGY

RESEARCH DESIGN:

The main aim of this research study was to know the brand preference in motorcycle
industry with special reference to TVS.

A research design is the framework (or) plan for a study that guides the collection
and analysis of the data.

It provides a scientific framework for conduct of research investigation. In this

research study descriptive research design has been followed wherein it is typically
concerned with determining frequency with which something occurs.

The different types of questions used for this research study are as follows:

1. Open-ended questions.

2. Closed-ended questions.

3. Dichotomous questions.

4. Multiple-choice questions.

AIMS, Allagadda.
SAMPLING PLAN:

Before undertaking the survey , the sampling unit, sample size and sampling
procedure are to be final analysis used for this study.

1. Simple bar Method: A simple bar diagram represents the magnit6ude of only one
. Variable.

2. Pie Diagram: In this the circle is partitioned into various sections representing
the proportions of various components.
3. Chi – Square Analysis:

When certain observed value of a variable are to be compared with the expected
value, the test statistic that is commonly used in x2, which follows the chi-square
distribution. The null hypothesis states that there does not exist significant
difference between the observed and the expected value.

X2 = (O-E) 2\E

This is the calculated value of z2. It is compared with the tabulated value of x2 at a
desired level of significance and (k-1) degree of freedom. If x2cal<x2 tab the null
hypothesis is accepted at the desired level of significance.

4. Likert Scale:

Likert scale involves a list of statements related to the attitude in question instead
of directing only those statements with which they agree, however, respondents are
asked to indicate the degree of agreement or disagreement with each of the
statements. Each degree of agreement is given a numeric scale and respondents
total score is computed by summarize these scores from all the statements. The
basic premise underlying such test is that responds will reveal their attitude by the
extent to which their answers to objective questions vary from the correct answers.

AIMS, Allagadda.
Likert Scale:

Likert score = Total Weighted Score\ Total number of respondents

Rank 1= 5 points
Rank 2= 4 points
Rank 3= 3 points
Rank 2= 2 points
Rank 1= 1 points

5. Weighted average Method:

Formula: WX\W

Here, W= total related data

X= Value Weight

Find the related data for each commodity multiply the related data in step 1 by
corresponding value extent get Wx, obtain the sum of products in step 2 for all the
commodities to get WX. And make the result as % (percentage each product).

AIMS, Allagadda.
 ANALYSIS

&

INTERPRETATION

AIMS, Allagadda.
 ANALYSIS AND INTERPRITATION

The following table shows no. Of respondents according to their age.

Table 1.1

Age No. of Respondents Percentage

Under 25 38 38%
25-34 34 34%
35-44 12 12%
45-54 8 8%
55-64 8 8%
Above 65 0 0
Total 100 100

Inference:

Out or 100 respondents met 38% are under 25, 34% of them were in between

25-34, 12% of them are in between 35-44, 8% of them are in between 45-54 and 8%

of them are in between 55-64.

AIMS, Allagadda.
The following table shows no. of respondents according to their educational

qualifications.

Table 1.2

Educational Qualification No. of respondents Percentage

Primary 2 2%
Secondary 18 18%
Graduation 52 52%
Post Graduation 22 22%
professional 6 6%
total 100 100

Inference:

Out of 100 respondents 2% are primary educated, 18% of them are secondary,

52% of them graduation, 22% of them post graduation and 6% professional.

AIMS, Allagadda.
The following table shows respondents income level per month.

Table 1.3

Income level p.m No. of respondents Percentage

Up to 9,900 48 48%
10,00-14,000 12 12%
15,000-20,000 8 8%
Above 20,000 8 8%
Others 24 24%
Total 100 100

Inference:

Out of 100 respondents met, 48% are below the income level of 9,900, 12%

are in between 10,000-20,000, 8% are in between 15,000-20,000,8% are in between

above 20,000 and 24% are others.

AIMS, Allagadda.
The following table shows the family members of the respondents.

Table 1.4

AIMS, Allagadda.
 Family members No. of respondents percentage
1-2 14 14%
3-4 60 60%
Above 5 26 26%
Total 100 100
Inference:

Out of the 100 respondents met 14% of them are in between 1-2, 60% of

them are in between 3-4, 26% of them are above 5.

The following table shows no. of respondents to come to know about this brand.

AIMS, Allagadda.
Table 1.5

Known about this brand No. of respondents percentage

News paper 20 20%
Television 14 14%
Magazine 12 12%
Friends 30 30%
Sales people 20 20%
Hoardings 4 4%
Total 100 100

Inference:

Out of 100 respondents met 20% come to know by news paper,14% come to

know by television,12% come to know by magazine, 30% come to know by friends,

20% come to know by sales people and 4% come know by hoardings.

Know about this brand

NEWS PAPER
4% 20% TELEVISION
20%
MAGAZINE
14% FRIENDS
30% 12% SALES PEOPLE
HOARDINGS

AIMS, Allagadda.
The following table shows No. of respondents and the mileage they get by their

Motor cycle.

Table 1.6

Specify the Mileage No. of respondents percentage

Below 45 Km/l 28 28%
45-50 26 26%
51-55 14 14%
56-60 18 18%
61-65 10 10%
Above 66 4 4%
Total 100 100

Inference:

Out of 100 respondents met, 28% of them gets mileage below 45, 26% of them

gets mileage between 45-50,14% are gets mileage between 51-55, 18% gets mileage

between 56-60,10% gets mileage between 61-65, only 4% gets mileage above 66.

AIMS, Allagadda.
In the following table shows the mode of purchase of bikes by the Respondents.

Table 1.7

Mode of Purchase No. of respondents Percentage

Cash down 68 68%
Monthly installments 20 20%
0% interests 10 10%
Bike exchange mela 2 2%
Total 100 100

Inference:

Our of 100 respondents met 68% get their bike by cash down, 20% by monthly

Installments, 10% by 0% interest and 4% by bike exchange mela.

AIMS, Allagadda.
The following table shows how much distance the respondents travel a day.

Table 1.8

How long do you ride No. on respondents percentage

Below 20 Kms 48 48%
20-40 36 36%
40-60 12 12%
60-80 2 2%
80-100 2 2%
Above 100 0 0%
Total 100 100

Inference:

Out of the 100 respondents met 48% travel below 20 Kms a day, 36% travel in

between 20-40, 12% travel in between 40-60,2% travel in between 60-80,2% travel in

between 80- and 0% travel above 100.

AIMS, Allagadda.
The following table shows respondents attitude towards motorcycles.

Table 1.9

Towards motorcycles No. of respondents percentage

Basic necessity 66 66%
Affordable 16 16%
Luxury 18 18%
Total 100 100

Inference:

Out of 100 respondents met 66% feel as basic necessity, 16% feel as

affordable and 18% feels as luxury.

AIMS, Allagadda.
CHI – SQUARE TEST

The cross tabulation between Educational qualification and attitude towards

Motor cycle.

Table 2.1

Cross tabulation between educational qualification and attitude towards motorcycle.

Educational Qualifications Basic Necessity Affordable Luxury Total

Primary 2 0 0 2
Secondary 16 2 0 18
graduation 32 14 6 52
post graduation 12 8 2 22
professional 6 0 0 6
total 68 24 8 100

HYPOTHESIS

H0 (Null Hypothesis)

There is no significant relationship between the educational qualifications

and attitude of the motorcycle.

H1 (Alternative Hypothesis)

There is significant relationship between the educational qualifications and

attitude of the motorcycle.

AIMS, Allagadda.
 68 X 2/100 = 1.36 24 X 2/100 = 0.48 8 X 2/100 = 0.16
68 X 18/100 = 12.24 24 X 18/100 = 4.32 8 X 18/100 = 1.44
68 X 52/100 = 35.36 24 X 52/100 = 12.48 8 X 52/100 = 4.16
68 X 22/100 = 14.96 24 X22 /100 = 5.28 8 X 22/100 = 1.76
68 X 6/100 = 4.08 24 X 6/100 = 1.44 8 X 6/100 = 0.48

O E (E-O)2 (E-O)2/E
2 1.36 0.4096 0.3012
0 0.48 0.2304 0.48
0 0.16 0.0256 0.16
16 12.24 14.1376 1.1550
2 4.32 5.3824 1.2459
0 1.44 2.0736 1.44
32 35.36 11.2896 0.3192
14 12.48 6.1504 0.4928
6 4.16 3.3856 0.8138
12 14.96 8.7616 0.5857
8 5.28 7.3984 1.4012
2 1.76 0.0576 0.0327
6 4.08 3.6864 0.9035
0 1.44 2.0736 1.44

AIMS, Allagadda.
 0 0.48 0.2304 0.48

The following table is obtained by using ((O-E) 2/E.

2 1.76 0.0576 0.0327

Hence there is no significant relationship between the educational qualifications

and the attitude towards the motorcycle.

LIKERT SCALE

The following table shows the ranking of the features in TVS as per customers

assessment and preference

Table 3.1

Features R1 R2 R3 R4 R5 Total
Good shape 16 22 26 26 10 100
Attractive color & styling 28 26 24 22 - 100
Mileage 24 22 16 16 26 100
Riding control 26 24 20 20 10 100
Exhaust sound 6 6 14 16 58 100
Total 100 100 100 100 100 500

Likert Scale = Total Weighted Score

Total No Of respondents

Rank 1 = 5 points

AIMS, Allagadda.
 Rank 2 = 4 points

Rank 3 = 3 points

Rank 4 = 2 points

Rank 5 = 1 points

Features R1 R2 R3 R4 R5 Total Weighted Weighted Ranks

total average

Good shape 16 22 26 26 10 100 308 3.08 IV

Attractive color & 28 26 24 22 - 100 370 3.6 I
styling

Mileage 24 22 16 16 26 100 314 3.16 III

Riding control 26 24 20 20 10 100 336 3.46 II
Exhaust sound 6 6 14 16 58 100 186 1.86 V
Total 100 100 100 100 100 500 1514

Inference:

From the above table it is clear that the customers are give more importance to

the attractive color and styling, riding control and mileage, give last choice to good

shape and exhaust sound.

AIMS, Allagadda.
 WEIGHTED AVERAGE METHOD

Following table shows ranking of the features in TVS as per customers

assessment and preference.

Features R1 R2 R3 R4 R5 Total Weighted Weighted Ranks

total average

Good shape 16 22 26 26 10 100 308 20.52 IV

Attractive color 28 26 24 22 - 100 370 24 I
& styling

Mileage 24 22 16 16 26 100 314 20.66 III

Riding control 26 24 20 20 10 100 336 21.79 II
Exhaust sound 6 6 14 16 58 100 186 12.4 V
Total 100 100 100 100 100 500 1514

The weighted given for the rank as follows:

Rank 1=5

AIMS, Allagadda.
 Rank 2=4

Rank 3=3

Rank 4=2

Rank 5=1

Weighted Average= WX\X

Inference:

From the above table it is clear that customer ranked attractive color and

styling, riding control, mileages are in top order and good shape and exhaust sound

are ranked least.

AIMS, Allagadda.
 FINDINGS

FINDINGS

After detailed analysis of data update from this research study we come to the

conclusion that:

1. It was found that 30% customers came to know about the brand by friends and

20% came to know by television and news paper.

2. Out of 100 respondents met for the study, it was found that more customers

are using hero Honda and later they give importance to TVS.

3. It was found that 68% of customers bought their vehicle to cash down

Payments, 20% of customers by monthly installments.

5. It was found that 68% of customers feel owning a bike as necessity and 24%

Of customers are feel affordable.

AIMS, Allagadda.
 6. From the survey it was found that 48% of customers are travel 20 km, 36% are

Travel 20-40 km.

7. In TVS product line it was found that 32% of customers prefer Victor and 30%

Prefer star city.

8. It was found that in TVS respondents preferred mileage, styling, good shape

and reselling price.

9. It was found that there is no significant relationship between

educational .
qualification and attributes towards motorcycles.

10. It was found that price, advertising, brand image, reselling price are

Influencing the respondents while choosing a bike.

11. It was found that according to respondent’s opinion about the overall
performance of the manufacturers of motor cycles, Hero Honda stands first
followed by TVS, Bajaj and Yamaha.

12. Hence efforts should be made to foster harmonious relations among these
groups
.
13. Advertisement is playing major role in the promotion of Hero Honda.

AIMS, Allagadda.
AIMS, Allagadda.
 SUGGESTIONS

SUGGESTIONS

 Positive word of mouth from friends and relatives may be generated and sustained
as it stands next to the Television Media in influencing the customer’s choice

 As TVS position is third as the least maintenance cost bikes, updating their
technology may develop the least cost positioning and image.

 The company needs to concentrate on releasing more models into the market in
order to capture more market share.

AIMS, Allagadda.
 Finance arrangements for purchase of bike may be strengthened in order to induce
more customers towards them.

 As majority feels that a bikes is a necessity to all sectors of the market, including
the lower end of the market may be targeted with suitable models.

 As the major consumer group is under 25 product features as well as the

advertisements may be tailor made for them.

 Low priced models should be promoted in order to attract middle income as well as
the lower income groups.

QUESTIONNAIRE
1. Name: _______________________

2. Age

Under 25 25-34 35-44

45-54 55-64 Above 65

3. Address: __________________________

__________________________

__________________________

AIMS, Allagadda.
4. Education Qualification

Primary Secondary Graduation

Post Graduation Professional

5. Occupation 1. Student
2. Govt.Service
3. Private Service
4. Business
5. Profession
6. Others

6. How many family members you have?

1-2 3-4 5and above

7. Income Level per Month?

Upto Rs.9, 900 Rs.10, 000-14,000

Rs.15, 000 -19,900 above Rs.20, 000

8. Attitude towards the motorcycle?

Basic necessity Affordable Luxury

9. How did you come know about this Brand?

News paper TV Magazine

Friends’ Sales people Hoarding

If other please specify ____________________________

10. Which mode of purchase of bikes you expect?

Cash down Monthly installments

0% interest Bike exchange mela

AIMS, Allagadda.
11. How much mileage gets you by exiting bike?

Below 45 KM/L 45-50 51-55

56-60 61-65 Above 66

12. How much distance travel a day?

Below 20 Km/L 20-40 40-60

60-80 80-100 above 100

13. Which kind of repairs you have choose frequently?

Low mileage Starting problem

Brake/electrical Speedometer

14. Which kind of maintenance problems you have chosen frequently?

Water wash cleaning carburetor

Oil change Spark plug

15. Which one do you prefer in TVS Product Line?

TVS Victor TVS Centra

TVS Star City TVs Apache

16. What is the main reason for purchasing TVS Products?

Riding Comfort Strength/durability

Company reputation Trouble free performance
Engine performance low maintenance cost

17. Rank following features in TVS as per your assessment and preference

Rank
Good shape _______________
Attractive styling and color _______________
Mileage _______________
Riding Control _______________
Exhaust sound _______________

18. What is the main difference between TVS and others?

AIMS, Allagadda.
 ___________________________________________________

___________________________________________________

19. Do you have any suggestions for Improvements of TVS Bike?

_______________________________________________
_______________________________________________
_______________________________________________

AIMS, Allagadda.
 BIBLIOGRAPHY

BIBLIOGRAPHY

BOOKS

1. MARKETING

AIMS, Allagadda.
 PHILIP KOTLER, PRINCIPLES OF MARKETING, NEW DELHI,
MILLENIUE EDITION INDIAN PRINT 2000.

2. RESEARCH METHODOLOGY

KOTHARI, C.R., “RESEARCH METHODOLOGY-METHODS AND

TECHNIQUES”, NEW DELHI, 1997, 2 ND EDITION.

3. STATISTICS

DR.GUPTA S.P. ELEMENTS OF BUSINESS STATISTICS, FIFTH

EDITION.

4. BRAND POSITIONING

SUBRATO SENGUPTA.

WEBSITE

WWW.TVSMOTORS .CO.IN
WWW. GOOGLE.COM
www. AUTO.INDIAMART.COM

AIMS, Allagadda.