Driving AI Competency - Key Considerations for B2B Marketers - Rosemary Brisco
TVS JUPITER (SECTOR, COMPANY & PRODUCT ANALYSIS)
1. 11ST SEMESTER FINAL PROJECT| 2017
| TVS MOTORS – TVS JUPITER |
NOVEMBER 13, 2017
SOUMYARKA DE
PRN NO.- DM17B56
SESSION- 2017-19
2. SECTORAL INFORMATION
The automobiles sector is compartmentalized in four different sectors which are as follows:
• Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers
• Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose vehicles
• Commercial Vehicles that are light and medium-heavy vehicles
• Three Wheelers that are passenger carriers like auto-rickshaw and goods carriers.
INDIAN AUTOMOBILE INDUSTRY IS AMONG THE TOP 5 AUTOMOBILE INDUSTRIES IN THE WORLD
CONTRIBUTION TO THE GDP OF THE NATION – 7.1%
Two-wheelers and passenger cars accounted for 78% and 15% of production volume in FY17
respectively.
Total production volume grew at a CAGR of 5.9 % between FY12-17 and increased 9.18% year-on-years
in April-September 2017.
Automobile exports from India increased 10.71% year-on-year in April-September 2017.
2
3. 79
3
3 15
% of market share of each segment in total production volume
in FY17
Two Wheelers Three Wheelers Commercial Vehicle Passenger Vehicle
3
59
66
68
58
59
64
69
2011 2012 2013 2014 2015 2016 2017
Gross turnover of Automobile manufacturer in India (in US $ billion)
Growth
Linear (Growth)
SECTORAL
GROWTH
4. Because of the brand
equity and capital
intensive nature of the
business.
Product differentiation.
Low costs of storage.
Large size industry. Fast
growth rate in the
industry. Entry of few
competitors
BARGAINING POWER OF
SUPPLIERS (Low)
Medium suppliers’
concentration. Critical
inputs production. Critical
volume to suppliers
THREAT OF SUBSTITUTES
(High)
There is a high threat in
terms of making a switch
to substitutes. The
substitutes are limited
The buyer price sensitivity
is low. There is a low
distributors dependency.
The number of customers
is large
4PORTER’S FIVE FORCE
MODEL OF THE
AUTOMOBILE SECTOR
OF INDIA
6. 6
Headquarters Chennai, Tamil Nadu, India
Sector Two- wheeler
Founder T.V. Sundaram Iyenger
Current CMD Venu Srinivasan
Parent Company Sundaram – Clayton Ltd.
Number of Subsidiaries 90+
Current Revenue 12308.68 CR INR (2016-17)
Total Assets 49.22 billion INR
Tagline/ Slogan We love to see you smile
USP One of the largest three two-wheeler manufacturers in India
FACTS ABOUT TVS
MOTORS
7. SWOT Analysis of TVS Ltd.
Strengths
1. Huge brand equity and one of the biggest players in the two wheelers Indian market.
2. Excellent R&D, and wide variety of products in every segment.
3. Excellent distribution and good number of service centers.
4. TVS Group has over 40,000 employees and a customer reach of over 15 million.
5. Associating itself with celebrity brand ambassadors.
6. ‘Scooty’ as a brand has become a second name for the scooter rate segment.
Weaknesses
1. Absence in the premium bike segment.
2. The after sales service network is weak and the service quality is not up to the
standards.
Opportunities
1. Two-wheeler segment is one of the most growing industries.
2. Export of bikes is limited i.e. untapped international markets.
Threats
1. Strong competition from Indian as well as international brands like Honda, Suzuki and
Yamaha.
2. Dependence on government policies and rising fuel prices
3. Better public transport will affect two-wheeler sales
7
MARKETING
8. Motor Cycles
• Apache Series RTR
• Victor
• StaR Series
• Fiero
• Victor
• Max 4R
Scooters
• Jupiter
• Wego
• Scooty Zest 110
• Scooty Streak
• Scooty Pep+
Mopeds
• XL 100
• XL Super
• XL Super Heavy Duty
8
9. 0
10000
20000
30000
40000
50000
60000
70000
80000
Tata Motors Ltd. Mahindra &
Mahindra Ltd.
Maruti Suzuki
India Ltd.
Hero MotoCorp
Ltd.
Bajaj Auto Ltd. Yamaha Motors TVS Motor
Company Ltd.
Eicher Motors
Ltd.
SALES/ FINANCIAL ANALYSIS CHART
Turnover (FY- 2016-
17)
PAT (FY- 2016-17)
33%
28%14%
16%
4%
3%
2%
Market share percentage
Hero
Honda
TVS Motor Co
Bajaj Auto
India Yamaha Motor
Royal Enfield
Mahindra Two Wheelers
COMPETITOR
ANALYSIS 9
11. 11
PRODUCT
• PRODUCT VARIETY: TVS Jupiter classic edition, Jupiter ZX DISC, millilon-R SE, ZX, STD
• FEATURES: Mileage- 62 kmpl, disc/drum brake, alloy wheel, kick/self start, fuel tank capacity 5ltr, 4- stroke/
single cylinder/ air cooled, OHC engine, automatic gearbox, 109.7cc displacement, LEDtail lamp, metal body,
phone charger.
• BRAND IMAGE: The logo itself is very popular among youngstars because of the horse illustration which
indicates how stretchable and sporty today's youngstars are.
• USE: For convenience, comfortable and cost effective journey in own vehicle.
• WARRANTY & CUSTOMER SERVICE: Company is providing XPRESS SERVICE, online service booking, mobile
app, road-side assistant & parts warranty.
PRICE
• Price varies with the variants of features,(Listed Price):- 1. TVS Jupiter MillionR- 52894/-; 2. TVS Jupiter STD- Rs.
53327/-; 3. TV Jupiter Jupiter ZX- Rs. 55994/-; 4. TVS Jupiter ZX DISC- Rs. 58190/-; 5. TVS Jupiter Classic Edition-
59141/- (+ 28% G.S.T. ON ALL MODELS)
PLACE
• TVS Motors have around 2000 country wide main dealer showrooms and service stations attached to it.
Manufacturing plants of TVS are located at Hosur, Mysore, Nalagarh and Karawang in Indonesia. There are also
sub dealers who are engaged in selling multiple brands in their showrooms with proper agreements.
• Top five cities of TVS ex- showroom: Kolkata; Mumbai; Chennai; Delhi; Kochi.
PROMOTION
• TVS has been able to strengthen its brand in India with extensive marketing. It has clearly understood its
segmention and positioning and directs its promotional activities to specific target audiences only.
• A multi- faceted strategy of communications with a strong online presence helps it to gain leverage as far as
back of the mind recall is concerned.
• Good media relations, and carefully targeted advertising campaigns as a part of the promotional activities
• Brand Ambassador: Mr Amitabh Bachchhan; popular Indian icon, popular amongst all age groups.
M
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13. 13SWOT ANALYSIS OF TVS JUPITER
Strengths
1. High Connectivity to young generation.
2. Backed by TVS motors.
3. Continuous innovation has proved to be a top performer in the
market.
4. Good performance over the years and the most awarded scooter.
Weaknesses
1. They have limited their target group and thus their revenue
2. Price is on the higher side
3. Safety is a concern for the driver
Opportunities
1. Expansion in the rural market with an image makeover
2. Introduction of measures that insure safety thus commanding a
premium
3. New technological developments, like introduction of fuel-less
(chargeable) motors.
Threats
1. Competitors
2. Change of taste of the target market due to globalization
14. 14
•Geographic: TVS Motors has one of the most extensive network
of 500+ dealers and 2500 service centres evenly distributed
throughout India.
•Demographic: TVS mainly focuses on Middle class people who
wants a vehicle which is stylish as well as save huge amount of
fuel expenses, young generation who wants to get away from
their usual boring life. Those who are price sensitive towards
travelling expenses. Income range could be between 15k-20k
p.m.
•Psychographic: Attitude - TVS JUPITER is gearless with greater
comfort, greater space- "ZYADA KA FAYDA", the tagline itself
created a pooling effect among customerswho want more/ extra
benefits by spending less. Interest - Less complex, easy to drive
would be the prime interest behind buying this.
•Behavioural: When the intention of buying the product is either
it would be driven by the husband as well as the wife. When the
customer is using the scooty for a long period of time but now
they want something upgraded & switch to another modern
version of scooty.
SEGMENTING
•Middle class youth between the age of 20-35 years
•College students and school going students are mainly the targeted
customer
•Presently housewives are also getting attracted towards the product
•Due to its comfort & gearless vehicle is always easy to drive
TARGETING
•Point of Difference (POD): Pulling capacity, convenient metallic parts,
greater mileage, high cubic centimeters, exclusive premium colors,
Brand image, special "Dura Cool" seats which tend to be around 10
degree lower than the normal seat temperature when parked under
sunlight.
•Point of Parity (POP): Great Mileage, comfortable drive, family two
wheeler vehicle, easy to drive, comfortability and style, light weight,
affordable price tag
POSITIONING
S-T-P OF TVS
JUPITER
15. 15
FINANCE
• Net Sales in FY 2017: Rs.13190.06 Cr
• Gross Profit: {Revenue from operations - (Cost of material consumed + Cost of Finished Goods + Excise
duty)} = {13190.06 – (8620.88+(58.73) +1054.75)} = Rs.3573.16 cr.
• Net Profit: Rs.558.08 Cr.
• NET PROFIT MARGIN = (Net Profit/ Net Sales) x 100
= (558.08/ 13190.06) x 100
= 4.231%
• GROSS PROFIT MARGIN = (Gross Profit/ Net Sales) x 100
= (3573.16/13190.06) x 100
= 27.08%
• Total fixed assets added during the year amounts to Rs.562.22 Cr. The amount of tangible
assets purchased during the year is Rs.529.37 Cr. and intangible assets purchased during the
year is Rs.32.85 Cr.
• Working Capital = Current Assets – Current Liabilities
= 2186.89 - 2851.08= -664.19
• Debt Equity Ratio = Total Liabilities/Shareholder’s Equity
Debt equity ratio for FY 17 is 1.45 as compared to 1.52 in FY 16.
Particulars 2017 2016 % CHANGE
DIRECT EXPENSES
Cost of Material Consumed
Change in Inventories
Excise Duty
TOTAL
8620.88
(58.73)
1054.75
9616.9
7657.23
70.53
986.26
8714.02
12.58 %
(183.26) %
6.94%
10.36 %
INDIRECT EXPENSES
Purchase of stock in trade
Employee Expenses
Other Expenses
Depreciation Expenses
Finance Cost
TOTAL
291.22
745.64
1679.23
287.81
43.95
3047.85
251.41
652.39
1663.23
236.05
48.73
128385.27
15.83 %
14.29 %
0.96 %
21.92 %
(09.80) %
(31.97) %
16. 16CHAIRMAN OF
COMPANY
BOARD OF
DIRECTORS
VP -
FINANCE
MANAGE
R-
FINANCE
EXECUTIVE
VP -
MARKETING
MANAGER-
MARKETING
EXECUTIVE
VP- HR
MANAGER-
HR
EXECUTIVE
VP- PRODUCT
TEAM
MANAGER-
OPERATIONS
SPARES
MANAGER
SPARES
BILLING
SPARE SALE
EXECUTIVE
SPARES
PURCHASING
WORKSHOP
MANAGER
SUPERVISORFLOOR
SUPERVISOR
MANAGER-
PRODUCT
TEAM
EXECUTIVE
VP- SALES
TEAM
MANAGER
SALES TEAM
EXECUTIVE
DIRECT
MARKETING
ORGANISATIONAL
STRUCTURE OF TVS
MOTORS
HUMAN RESOURCE
MANAGEMENT
17. 17
Preliminary interview
Selection tests
Employment
interview
Physical
Examinations
Selection decision
Reference and
Background checks
Job Offer
Contract Of
Employment
Evaluation Of
Selection program
SELECTION
PROCESS
AT TVS
WELCOME NEW EMPLOYEE
PROVIDE INFORMATION ON
ORIENTATE THEM TO NEW
ORGANISATION
OUTLINE OF EMPLOYEES NEW
JOB OBJECTIVES
OUTLINE L & D
OPPORTUNITIES
PROVIDE H & S
INFORMATION
EXPLAIN TERMS AND
CONDITIONS OF
EMPLOYMENT
INDUCTION
PROCESS AT
TVS MOTORS
SETTING
PERFORMANCE
STANDARDS
COMMUNICATI
NG
STANDARDS
MEASURING
STANDARDS
COMPARING
STANDARDS
DISCUSSING
RESULTS
TAKING
CORRECTIVE
STANDAREDSPERFORMAN
CE
APPRAISAL
MODEL OF
TVS
CAREER
PLANNING AT
TVS MOTORS
POSITIVE CULTURE NEGATIVE CULTURE
• Good company for career growth
• Fixed timing and good working
environment
• Seniors are supportive
• Encourages innovation
• Good learning environment
• Treating employees negatively
• Employees have to often fight for
their rights
• HR function needs much
improvement
• Too much bossism
• Lack of professionalism
ORGANIZATIONA
L CULTURE AT
TVS
