Tvs sector market and organization

1. BY-
Dipthartha Dey
Mba Section 3
2019-0907-0001-0009

2. Market Overview
Segment-wise Domestic Market Share in FY18
Two-wheeler
81%
Commercial Vehicle
3%
Three-wheeler
3%
Passenger Vehicle
13%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
Motorcycle Scooters Moped
TWO-WHEELER MARKET SHARE
• Industry sector is contributing around 29 % of the Indian GDP and $ 93
billion automotive industry contributes 7.1% to India’s GDP
• An optimistic revenue target of $300 billion for FY 2026 has been set.
• average production of around 24 million vehicles annually and
employer of over 29 million people (direct and indirect employment).
• An average production of around 24 million vehicles annually and
employer of over 29 million people (direct and indirect employment).
13, 13%
4, 4%
3, 3%
80, 80% Passenger Vehicles Commercial Vehicles
Three Wheelers Two Wheelers

3. Growth
• Growing Demand
• Opportunity
• Rising Investment
• Policy Support
Reason for Growth
Rising Investment
Policy Support
Cumulative FDI inflow of about US$ 19.29 billion in
automobile sector between April 2000 to June 2018.
Automotive Mission Plan 2016-2026 shows clear vision of
the government.
Growth in April-March 2019
Motorcycle Scooters Moped
Series1 -0.27% 7.76% 2.41%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
Growth Pattern
• Automobile exports grew 14.5 % during
FY 2019. CAGR of 3.05 per cent during
2016-2026 expected.
• sales increased at 6.71 per cent CAGR
between FY13-19 with 26.27 million
vehicles getting sold in FY19

4. Porter’s Five Force Canvas
• Financially strong brands.
• Fast growth rate in the
industry.
• Low switching cost.
HIGH
Competitive
Rivalry
• High market competition.
• Wide range of products
available.
• Price sensitive decisions.
HIGH
• Competitors like Honda,
Yamaha and Hero in the
market.
• Technologically advanced
industry.
LOW
• Key inputs of production.
• Fewer options.
MODERATE
• Highly capital intensive
market.
• Excellent R&D required.
• Volatile market.
MEDIUM TO LOW
Bargaining
Power of
Buyers
Threat of
Substitutes
Bargaining
Power of
Suppliers
Threat of
Entrants

5. Market Share
Competitors
• Hero is leading the
market.
• Suzuki has the lowest
market share.
• TVS Motors has 14.8%
market share
TVS JUPITER
Honda Activa is the direct
competitor for TVS Jupiter.
Suzuki,
3.20%
Yamaha,
3.80%
Royal
Enfield,
3.80%
Bajaj,
12.00%
TVS,
14.80%
HMSI,
26.10%
Hero Moto
Corp,
35.90%
Others,
0.40%
MARKET SHARE TVS MOTORS

6. TVS Motors Product Line
TVS MOTORS
SCOOTERS
 JUPITER
 WEGO
 SCOOTY ZEST
110
 SCOOTY STREAL
 SCOOTY PEP+
MOPEDS
• XL 100
• XL
• XL SUPER
HEAVY
DUTY
MOTORCYCLES
 APACHE SERIES
 VICTOR
 STAR SERIES
 FIERO
 VICTOR
 MAX 4R
THREE-
WHEELERS

7. SWOT Analysis
S
WT
O
• Absence in the premium bike segment.
• The after sales service network is weak
and the service quality is not up to the
standards
• Competitive disadvantage in terms of
economies of scale.
Weakness
• Two-wheeler segment is one of the most
growing industries.
• Export of bikes is limited i.e. untapped
international markets.
Opportunity
• Huge brand equity and one of the biggest
players in the two wheelers Indian market.
• Excellent R&D, and wide variety of
products in every segment.
• "Scooty" as a brand name has become a
second name for the scooter rate segment
• 25 years of racing experience, provokes
mindset.
.
Strength
• Better public transport will affect two-
wheeler sales.
• Dependence on government policies and
rising fuel prices.
• Substitutes and competitors.
Threat

8. BCG Matrix
BCG MATRIX
.
TVS JUPITER
CASH COW
TVS MAX 4R.
DOG
TVS PHOENIX
QUESTION MARK
TVS APACHE
STAR

9. STP of TVS Motors
Middle-class people
who want a stylish
bike with good
mileage.
Middle-class youth
from the age bracket
of 20 – 40 years and
affordable prices
targeting families with
minimum of 5LPA
income.
Indian company
producing bikes which
bring a smile in the
lives of customers.
SEGMENTATION
TARGET
POSITION

10. Product Life Cycle
Introduction
This is the stage when the product is very new to the market, and
the firm tries to create product awareness and develops a market
for the product.
Growth
This stage is characterized by increased sales and profits as the
product becomes a hit in the market.
Maturity
This stage is characterized by slow growth and intense
competition. There are several firms that offer similar kinds of
products and competition is high.
Decline
Finally, the product reaches the stage where the profits touch the
lowest point, competition becomes severe and customers start
using other better alternatives.
TVS Apache
RTR 310 is in the
Introduction
stage.
TVS Jupiter is in
the Maturity
stage.
.TVS Apache is
in the Growth
stage.
Scooty Pep+ is in
the Decline
stage.

11. Marketing Mix
PRODUCT
• TVS has earned a reputation of
producing very innovative
solutions for its product line up.
• TVS caters to mass markets as
well as young working
professionals, smart independent
women and sports oriented
youngsters, TVS has a wide range
of products.
PRICE
• Strictly keeping in mind the
sentiments and value of Indians,
TVS prices its products
competitively.
• The pricing strategy in the
marketing mix of TVS Motors is
based on competition.
PLACE
• TVS motorcycles have a strong
distribution network.
• The wide dealership network is the
place strategy in the marketing mix
of TVS Motors,
• A strong focus on rural markets
PROMOTION
• Good media relations, and
carefully targeted advertising
campaigns as a part of the
promotional strategy in the
marketing mix of TVS, further help
build the brand to grow.
• Comprehensive brochures, ATL
advertising, standees, direct
emails, etc all help boost TVS
sales.

12. Product
• mopeds
• Scooters (TVS Sooty
pep, Sooty zest 110,
Wego 110, Jupiter),
• Motorcycles (Sport,
Start city +110,
Apache RTR 160, 180,
200 and 200
4V),Apache RR310)
• 3 wheelers (King)
• Victor 2016 Phoenix
125, TVS
• Quality
• USP
• Image
• Features
• Competitive
• Colors
• Indian brand
• Power to weight ratio
• Variants
• Use
• Slogan
• SBT, ZX SBT, Disc SBT, Classic SBT,
• Grande Disc SBT
• City and rural
• Zyada ka Faida
Price
Listed Price-₹ 53,741 -₹ 62,606
Place
• Showroom, authorized
dealers
• Urban/rural areas
• International Markets
Promotion
• Marketing
Communication
Television advertisements,
Newspapers, Magazines, Online
(Facebook) advertisement
Cost reduction programme plays key role in helping TVS grow EBIDTA
two-wheeler sales fall 20%; three-wheeler sales up 11%.
Launched RR310 Apache, 1st premium bike by TVS collaborated with BMW.
Company
News

13. TVS MOTORS INCOME STATEMENTANALYSIS
 Operating income during the year rose 30.7% on a year-
on-year (YoY) basis.
 The company's operating profit increased by 72.3% YoY
during the fiscal. Operating profit margins witnessed a fall
and down at 9.2% in FY18 as against 7.0% in FY17.
 Depreciation charges and finance costs increased by
17.9% YoY and 46.73% YoY, respectively.
 Other income declined by 12.1% YoY.
 Net profit for the year grew by 30.5% YoY.

14. Particulars 2019 2018 2017 2016
Net Profit/ Loss before Extraordinary Items and Tax 960.96 878.64 698.68 628.94
Net Cash Flow from operating activities 1097.78 1251.57 723.93 941.09
Net Cash from investing activities (1002.28) (1085.61) (748.12) (608.16)
Net Cash used from Financing activities 81.13 (74.74) (-72.70) (306.05)
Net Income in Cash and Cash equivalents 176.63 91.22 (96.89) 26.88
Cash and Cash Equivalents Begin of year (137.62) (228.84) (131.95) (158.83)
Cash and Cash Equivalents End of year 39.01 (137.62) (228.84) (131.95)
CASH FLOW STATEMENT
(in Cr.)

15. ORGANISATIONAL
STRUCTURE
The responsibilities of
a human resource
manager fall into
three major areas:
Staffing, employee
compensation and
benefits and defining /
designing work.
PROS:
Opportunity to explore new
technologies.
Good working hours. (5 days
a week)
Good learning environment.
Good work culture.
Good salary and work
environment.
Excellent recognition of
talent, good work life
balance.
Employee friendly company
with transparency.

16. Job Roles
Good Communication Skills
Communication is the key to management.
Sales Promotion
TVS has a reputed brand value. A manager
is expected to be superb at sales promotion.
Leadership Qualities
A manager should be a great team leader
with great leadership qualities for the
enhancement of employee performances.
Accounting
The finance department requires managers
with good accounting capabilities.
Knowledge of salary, payroll, wages is also
required.
Banking
A good accountant should know banking
techniques.
Key Skills
Required
1. Marketing 2. Finance 3. Human Resource
Capacity Enhancement
Warranty Analysis
Production Planning
Cost Reduction
Delivery Management
Salary
Payroll
Accounting
Banking
Wages
Talent acquisition
Optimize HR investment
Ensure talent pipe
line and compliance

17. Employee Reviews
• Opportunity to explore new technologies.
• Good learning environment.
• Good salary and work environment.
• Excellent recognition of talent, good work life balance.
• Employee friendly company with transparency.
PROS
• Worker oriented, no work-life balance.
• Slow decision making often leading to misreading of market situation.
• Limited growth opportunities and non-flexible working hours.
• HR department needs improvement.
CONS

18. Thank you