A Project Report On “BUYING BEHAVIOUR & PERCEPTION OF SCOOTERETEES AMONG YOUNG WOMEN” (A STUDY AT KOTA CITY, RAJASTHAN) Research Project Submitted Towards partial Fulfillment of Two Year MBA Degree Program (2007-2009) Submitted by :- Under the Guidance of :- Ms. RITU MAHESHWARI Dr. HEMANT KOTHARI PACIFIC INSTITUTE OF MANAGEMENT, UDAIPUR.
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AProject Report
On
“BUYING BEHAVIOUR & PERCEPTION OFSCOOTERETEES AMONG YOUNG WOMEN”
(A STUDY AT KOTA CITY, RAJASTHAN)
Research Project Submitted Towardspartial Fulfillment of
Two Year MBA Degree Program (2007-2009)
Submitted by :- Under the Guidance of :- Ms. RITU MAHESHWARI Dr. HEMANT KOTHARI
PACIFIC INSTITUTE OF MANAGEMENT,UDAIPUR.
(Affiliated to Rajasthan Technical University &
Approved by AICTE)
Post box no. 12, Pratap Nagar Extension, Airport Road,
Udaipur – 313001
CERTIFICATE
DECLARATION
I HEREBY STATE THAT THE INFORMATION FURNISHED BY
ME IN THIS ASSIGNMENT IS CORRECT AS PER THE FACTS AND FIGURES
KNOWN TO ME. I HAVE COMPLETED THIS ASSIGNMENT BY THE HELP OF
“Mr. Umesh Maheshwari” (DIRECTOR) TVS MOTOR COMPANY. IF
THERE IS ANY ERROR IN THIS ASSIGNMENT THEN PLEASE GIVE ME EXCUSE.
NAME : RITU MAHESHWARI
PIM UDAIPUR
ACKNOWLEDGEMENT
THIS PROJECT HAS BEEN AN EYE OPNER FOR ME. THERE ARE MANY,
WHO HAVE HELPED AND INSPIRED ME.
I WOULD LIKE TO EXPRESS MY GRATITUDE TO MY FACULTY WHO
TOOK PAINS TO SUPERVISE THE LIVE PROJECT TO ALL THE TEACHER
AND STAFF MEMBER FOR THEIR KIND CO-OPERATION AND GUIDENCE
DURING THE COURSE OF THE PROJECT STUDY UNDERTAKEN IN THE
CONCERN.
I WISH TO EXPRESS MY SINCERE GRATITUDE TO “Dr. Hemant Kothari”
MY PROJECT GUIDE & “Prof. B.P. Sharma” OUR DIRECTOR WITHOUT
WHOM THIS PROJECT WOULD NOT HAVE COMPLETED.
I WOULD SPECIALLY THANK MY FRIENDS FOR THEIR CONSTANT
SUPPORT, WHICH HAS ALWAYS BEING A GREAT SOURSE OF STRENGTH
AND INSPIRATION.
AND I AM ALWAYS, GREATFUL TO THE ALMIGHTY GOD WHO ALWAYS
PROVIDED ME NECESSARY SUPPORT WHENEVER I AM NEED.
NAME : MS. RITU MAHESHWARI
PIM UDAIPUR
INDEX
S.No. PARTICULARS PAGE NO1 EXECUTIVE SUMMARY 1
2 TITLE, OBJECTIVES&
SCOPE OF THE PROJECT
3
3 COMPANY PROFILE 6
4 THEORETICAL BACKGROUND 13
5 RESEARCH METHODOLOGY 25
6 DATA ANALYSIS &
INTERPRETATION
29
7 LIMITATIONS OF THE PROJECT 46
8 FINDINGS 47
9 SUGGESTIONS 48
10 CONCLUSION 49
11 BIBLIOGRAPHY 50
ANNEXURE
EXEUTIVE SUMMARY
TITLEOBJECTIVEND
SCOPE OF THE TOPIC
COMPANY PROFILE
THEORETICAL BACKGROUND
RESEARCHMETHODOLOGY
DATA ANALYSISAND
INTERPRETATION
LIMITATIONS OF THE PROJECT
FINDINGS
SUGGESTIONS
CONCLUSION
BIBLIOGRAPHY
EXECUTIVE SUMMARY
The study of project are known to be a student’s first brush with
corporate world. This is the time for student to push words and theories
into action. This is the opportunity to integrate classroom learning with
real life situation. While doing project, student are placed under the
guidance of a manager. These managers serve as a mentor. The
mentorship possibilities available during the invaluable for student and
company. For student apart from guidance, it is also an opportunity to
understand responsibilities involved in their chosen fields. For companies
this mentorship gives opportunity to evaluate student for future
employment. Companies admit that they use the summer programs to
gauge the abilities of the student. For many students summer programs
are primary source for final recruitment.
This project gave me an opportunity to work with one of the
market leader in Buying behaviour & Perception about amoug young
women (a study at kota city) in TVS Motors Company Kota (Raj.). I got
the chance to study and analyze the market scooteretees vehicles by
conduction research which is a core function of marketing.
For this I developed a research design and then according to it I
collected the data using both primary and secondary methods. Majority of
the data collected was through the questionnaires. My project guide also
provided me the necessary information.
After collecting the data I used various statistical techniques to
interpret and formulate the results.
The main aim of the project was to find out the market share of
TVS Motors in Kota. The opinions of the customers were taken by
visiting various places of Kota and information was collected form the
customers.
The project was started from the questionnaire. The questions are
asked to respondent about their experiences towards products of TVS
Motors and other competitors. The survey was conducted to know the
market potential and market share for scooteretees segment.
TVS Motors company is India’s third largest two wheeler
manufacturer and globally among the top 10 with an annual turnover of
650 US$ hence I wanted to do my Live research project in TVS Motors
Company.
TITLE
“BUYING BEHAVIOUR & PERCEPTION OF SCOOTERETEES AMONG YOUNG WOMEN”
(A STUDY AT KOTA CITY, RAJASTHAN)
The study is all about the market buying behaviour & perception of
scooteretees among young women in Kota city and the market analysis
for Scooteretees. This market research was done to know the performance
of TVS Scooty and its competitors. And also to study the satisfaction
level of scooteretees users in Kota.
OBJECTIVES OF THE PROJECT
Primary objectives:
1 The market analysis for TVS Company in Kota (Rajasthan).
2 To study different competitors in the same sector.
3 To study the Consumer buying behaviour of Scooteretees.
Secondary objectives:
1 To know the satisfaction level of scooteretees users.
SCOPE OF THE STUDY
India is the second largest manufacturer and producer of
scooteretees in the world. It stands next only to Japan and China in terms
of the number of scooteretees produced and domestic sales respectively.
But still in India only 20 to 25 people per thousand have scooteretees. So
in India there is high scope of scooteretees young women manufacturers.
In Kota region scooteretees are basic mode of transportation but in
Kota only 0.4% people have scooteretees. So there are more and more
potential customers available in Kota market.
Because of Industrial development and increase in number of
students in Kota city, sales of scooteretees are increasing and there is high
scope for scooteretees Companies in future.
Disposable income of people in Kota is increasing and because of
this scooteretees companies can increase market share in Kota.
Scope of this project includes study of consumer buying behaviour
for scooteretees female customers.
COMPANY PROFILE
TVS Motor Company
"Inspiration in Motion"
The company was incorporated as Indian Motorcycle Pvt. Ltd. on
15th July. Its name was changed to Indo Suzuki Motorcycles Pvt. Ltd.
and it was converted into a public limited company on 12th January,
1984. It was promoted by Mr. N. Krishnan in collaboration with Suzuki
Motor Co. Ltd. Japan; Sundaram-Clayton, Ltd., a member of the
Company to the extent of Rs 70 lakhs.
The company entered into a technical know-how and assistance
agreement with Suzuki Motor Co. Ltd., of Japan on 22nd September. As
per the terms of the Collaboration, Suzuki agreed to furnish complete
technical information and know-how, trade secrets and other data.
59,40,000 shares issued at par in 1984. 7,00,000 shares allotted to
Sundaram Clayton, Ltd. Chennai, 70,000 shares allotted to Anusha
Investments (P) Ltd. Chennai, 20,00,000 shares allotted to Suzuki Motor
Co., Ltd., Japan; 2,20,000 shares allotted to employees
TVS Motor is the third largest two-wheeler manufacturer in India
and ranks among the top ten globally. It is the first company in the world
to honored with the Deming Prize for Total Quality Management. The
company was the first in India to launch 2-seater 50cc moped and 100cc
Indo-Japanese moped. At present TVS scooty Pep+, TVS Teenz, TVS
Scooty and TVS Streak are the popular scooteretees in Indian market.
TVS is the holding company for the TVS Group of companies
engaged in the manufacturing of almost all kinds of automotive
components, scooteretees and a few other industrial products. They are
also into the financial services sector.
TVS was founded by TV Sundaram in 1911. In 1980 TVS 50,
India’s first two-seater moped rolled out of the factory at Hosur in Tamil
Nadu, Southern India. A byword for reliability, the TVS 50 had proved
itself promising and successful in every test and paved a way for many
successes for TVS Suzuki. Likewise the TVS champ and super Champ
gave a reliable and sturdy two wheeler to public, who wanted looks fused
with economy. These two wheelers together redefined the category of
mopeds in India. TVS later left its collaboration with Suzuki and started
to manufacture its own vehicles.
TVS Motors Company is currently the third largest two wheeler
company in India with sales of 107,117 units (as of June 2007). The
company exported 9,133 units of two wheelers in June 2007.
Currently, the group has more than 30 companies and employs
over 40,000 people worldwide. With steady growth, expansion and
diversification, it commands a strong presence in the manufacturing of
two-wheelers, auto components and computer peripherals. They also have
vibrant businesses in the distribution of heavy commercial vehicles
(HCV) passenger cars, finance and insurance.
1980 is the red letter year for TVS when India’s first two-seater
moped rolled out. It ushered in an era of affordable personal
transportation.
CURRENT SCENARIO:
The automobile industry crossed a landmark with total vehicle
production of 10 million units.
1 The scooteretees market grew by 13.6 per cent with 70,56,317
units against 62,09,765 units in 2004-2005.
2 India, sourcing base for global auto majors.
3 Passenger car and motorcycle segment is set to grow by 8-9%.
4 The scooteretees segment will clock 11.5% rise by 2009.
5 Commercial vehicle to grow by 5.2 per cent.
6 Estimated component market size is US$ 6.7 billion.
India, in auto sector, is turning to be a sourcing base for the global
auto majors. The passenger car and the scooteretees segment is set to
grow by 8-9 percent in coming couple of years, says the ICRA report.
The industry is likely to maintain the growth momentum picked up in
2002-2003.
In the scooteretees segment, according to the report, the
motorcycles would clock 11.5 per cent rise during 2004-2007 over its
siblings-scooters and mopeds. Scooters sales would decelerate and
mopeds would also see the same. Overseas market would present huge
opportunities for the scooteretees makers.
Today, there are over thirty companies in the TVS Group,
employing more than 40,000 people worldwide and with a turnover in
excess of USD 2.2 billion. With steady growth, expansion and
diversification, TVS commands a strong presence in manufacturing of
two-wheelers, auto components and computer peripherals.
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.
TVS also 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.
TVS has two manufacturing plants in Mysore and Hosur, near
Bangalore, India’s IT Capital, are spread over 272 acres and 174 acres
respectively, with a combined capacity to produce over 1.5 million two
wheelers per annum.
PRODUCTS AND SERVICES:
Scooteretees:
1 TVS Scooty EX (60cc)
2 TVS Scooty KS (60cc)
3 TVS Scooty Pep (75cc)
4 TVS Scooty Pep+ (90cc)
5 TVS Teenz (60cc)
6 TVS Streak (90cc)
Mopeds:
1 TVS 50 XL (50cc)
2 TVS XL (60cc)
3 TVS XL Super (60cc)
4 TVS Champ (60cc)
DISTRIBUTION NETWORK:
TVS Motors Company has 550 dealers and over 2500 authorized
service centers in all over India.
MILESTONES OF TVS MOTOR:
1 India’s first 2 seater 50cc moped TVS 50, launched in August 1980.
2 First Indian Company to introduce 100cc Indo-Japanese moped in
September 1984.
3 Launched first indigenous Scooteretees (sub-100cc variomatic
scooters), TVS Stooty in June 1994.
4 Introduced first catalytic converter enabled moped, the 110cc Shogun
in December 1996.
5 Launched India’s first 5-speed the Shaolin in October 1997.
6 Launched TVS Fiero, India’s first 150cc, 4 stroke in April 2000.
7 Launched TVS Scooty & Scooty Pep+, 2-stroke in 2003, India’s first
fully indigenously designed and manufactured scooteretees.
8 Launched TVS Teenz in 2007, a world class 2-storke 60cc scooty with
the revolutionary VT-i Engines for best-in-class mileage.
9 Launched TVS Streak in 2009, a 90cc scooty which is ideal for rough
terrain.
THEORETICAL BACKGROUND
HISTORY:-
The era of post independence from the 50’s to 70’s saw the
emergence of the two-wheeler in scooteretees industry. There were few
players like Bajaj Auto, Honda & Hero-Honda though with limited
production. Manufacturing was licensed, expansion restricted and
locations for setting up plants decided by the Government. Two wheeler
(scooteretees) productions were under a lakh during the 70’s and iconic
brands like Honda, Hero-Honda and Bajaj Auto’s won the hearts of
Indian consumers.
After almost decades of a monopoly of Bajaj Auto, things began to
change. The 70’s and 80’s saw new manufacturers like India and kinetic
emerge. This decade got manufacturers the best margins and two
scooteretees production went upto almost 4 and half lakh units. Then in
early 90’s the market shift over period of scooteretees to all compaines.
The 80’s proved to be the transformational decade. Hero tied up
with Honda, TVS . It was Hero Honda that moved the Indian market form
scooteretees with the promise of fuel economy, better technology and
stylish products.
Post liberalization the focus was on technology, pollution control,
emission norms, increased competition and segmentation. Two wheelers
in scooteretees production grew to almost 38 lakh units. This period
incidentally saw global alliances like Kinetic, Honda, TVS, Bajaj and
Hero-Honda come apart with the foreign partners going it alone.
The last 7 years have seen an increase in exports, capacity
expansion, more investments and almost a dozen vehicle manufacturers.
But global big players like BMW, Harley Davidson, Triumph, Ducati
continue to give India the cold shoulder. Increased disposable income-
more families graduating to threshold level of income, increasing need
for mobility, demand from semi-urban and rural areas wider choice,
lower prices and greater financing opportunities are contributing to
scooteretees growth. From almost a single player to a dozen players today
in India, with penetration level of 30-40/1000 people owns a scooteretees
there is a huge potential in the two-wheeler in scooteretees market.
MAJOR SCOOTERETEES PLAYERS IN INDIA:
1 BAJAJ AUTO
2 HERO HONDA
3 TVS MOTORS
4 HONDA
5 OTHERS
MARKET GROWTH
Segmental Growth of the Indian scooteretees Industry (FY1995-
2004)
Trends in Segmental Share in Industry Sales (FY1996-
9MFY2005)
Shares of Two-Wheelers in scooteretees Manufacturers in
Industry Sales (FY2000-9MFY2008)
Technological tie-ups of Select Players
Nature of Alliance Company Product
Technological tie-
up
Kawasaki Heavy Industries
Ltd, Japan
Mopeds
Technological tie-
up
Tokyo R&D Co Ltd, Japan Two-
wheelers in
scooteretees
Technological tie-
up
Kubota Corp, Japan Diesel
Engines
HONDA Joint Venture Honda Motor Co, Japan Scooteretees
TVS
MOTORS
Technological tie-
up
Suzuki, Japan Scooty
KINETIC Tie up for
manufacturing
and distribution
Italjet, Italy Scooteretees
BAJAJ Technological tie-
up
Daelim Motor Co Ltd Scooteretees
HERO-
HONDA
MOTORS
Technological tie-
up
Aprilia of Italy Scooteretees
Consumer Buying Behaviour: Concept
The aim of the marketing is to meet and satisfy target customers
need and wants. The field of the customer behaviour studies how
individuals, groups, and organization select, buy, use and dispose of the
goods, services, ideas, or experiences to satisfy their needs and desires.
Understanding consumer behaviour and knowing customer is not
simple. Customer may say one thing and do another thing. They may not
be in touch with their deeper motivations.
Also it is very important for any organization to analyze the
opportunity. It is must for organization to convert challenges in to
profitable opportunity for analyzing marketing opportunities and
formulating effective marketing strategy, an understanding of the relating
market is necessary. Since market consists of buyers, it is the behaviour
of buyers that central to an understanding of markets. Buyer is the king of
the market. Every organization is aim to satisfy the need of the
consumers. So that it is important to buying of the customer.
Consumer behaviour:-
Consumer behaviour explain how the individual consumers, group
of the consumers and organization select, buy, use, and dispose of goods,
and services to satisfy their needs and wants.
1 Models of the buying behaviour:-
Different models of the buying behaviour will help the
organization to understanding the buying behaviour of the consumers.
There are number of various items and the consumers consume number
of items. But the basic aim behind the consumption activities is to satisfy
the needs and wants of the consumers. An understanding of need and
processes that influence the consumer behaviour if such needs can help
the marketer in his task. There is not any kind of discipline that provides
different models for understanding these. We will undertake these main
four models.
1 Economical model: Consumer have certain amount of purchasing
power, and a sets of needs and taste, he will allocate his expenditure over
different product at given prices rationally so as to maximize utility.
2 Learning model: This model refers to the consumer’s formation and
satisfaction of needs and tests. They postulate that living organisms have
both innate needs (primary drivers like hunger, trust, sex) and learned
needs (like fear, guilt).
3 Psychoanalytical model: According to psychologist the consumers
who are concerned with personality, human needs and motives operates
at conscious as well as sub-conscious level.
4 Sociological model: Human learns their behaviour from their culture,
subculture, social class, reference groups and group leaders.
Factor that influence the consumer buying behaviour:-
The customer buying behaviour is influenced by the cultural,
social, personal and physiological factors.
Cultural factor have the major impact on buying behaviour of the
person. Cultural background of any person has deep impact on the buying
behaviour. Culture is the fundamental determinant of person’s wants and
behaviour. The culture will determine the need of the person. Different
people from different culture will have their different need according to
their cultural background. The culture factor like nationalization, religion,
racial groups and geographical region have the big impact on the buying
behaviour of the customer.
1 Social factors :-
The customer behaviour is also affected by the social factors.
Different social factors like reference group, family, social roles and
status etc also affect the buying behaviour of the person. The buying
behaviour will be influenced by the groups with whom the person is
directly or indirectly related the buying pattern of the person is also
influenced the family. The family culture of the person has big impact
over the consumption pattern of any person. Also the status of the person
in the society will decide the buying pattern of the customer and the
person will decide his buying pattern according to his social role.
2 Personal factors :-
The buyer’s decision is also influenced by the personal factors. The
personal factors will decide the buying behaviour of the persons. The
consumption pattern of the person will be changed according to the stage
of the life cycle also the economic factors also have big impact on the
buying pattern. Economic circumstances affect the consumption of the
products so that the buying behaviour is also affected by the personal
factors.
3 Psychological factors :-
A person buying choice is also influenced by the major
psychological factors motivation, perception, learning and beliefs and
attitude, motivation is considered as one of the most important factor that
has major impact on the buying behaviour of the person. If the person
will be motivated then he will be influenced to satisfy his needs and
wants which led to influence his behaviour. Also the perception of the
person will also motivate the behaviour of the person. And beliefs and
attitude will also have big impact on the buying behaviour of the person.
The belief and the attitude of the person will decide the buying pattern of
the person.
2 Consumer buying process:
Let’s see the customer buying process by which it satisfies its
needs and wants. There are number of stages are involved into the
customer buying process. The stapes involved into the customer buying
process can explain as below.
4 Problem reorganization:
The buying process starts with problem reorganization or need.
The need can rise by internal or external stimuli. The internal stimuli
involve general need of the person’s like hunger; thrust etc. and the
person will be motivated to satisfy that need. And the need that will be
aroused by external factors known as external stimuli.
The marketer should try identifying the circumstances that raise the
need of the customer. The marketer should collect the information from
the different sources and it can develop marketing strategies that increase
the customer interest.
5 Information search:
There are number of sources for collecting information. Once the
person will be aroused, he will try to collect more and more information.
Different sources for collecting the information are,