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SALES PROMOTION PRACTICES AT TVS MOTOR COMPANY LIMITED

Enukurthi Anil Kumar1
1. ABSTRACT
Sales promotion has become a vital tool for marketing and its importance has been increasing
significantly over the years. One of the purposes of a sales promotion is to elicit a direct
impact on the purchase behavior of the firm’s consumers. Firms have to rethink the
relationship between attitude and behavior of their consumers. Sales promotions are highly
effective in exposing consumers to products for the first time and can serve as key
promotional components in the early stages of new product presentation.
2. INTRODUCTION
Promotion is true that products are manufactured to satisfy the needs of the
consumers. But alone is not enough. Today the responsibility of the manufacturers does not
cease with physical production whatever may be the nature of the product. The present day
marketers are consumer oriented where it is the duty of the manufacturers to know from
where, when, how and what price the products would be available. Successful marketing
consists in offering the right product of the right price of the right place (and time) with right
promotion.
In course of time, various activities came into vogue designed particularly to help
easy sale of goods. These activities commonly known as promotional Mix. The marketing
communication Mix also called as the ―Promotion Mix‖ consists of four major tools.
1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
3. MARKETING COMMUNICATION PROCESS:
Generally marketing communication is undertaken to pass on the message of a
product or sale to the ultimate consumers. Thus, there are three elements in this process
Promotion is true that products are manufactured to satisfy the needs of the
consumers. But alone is not enough. Today the responsibility of the manufacturers does not
cease with physical production whatever may be the nature of the product. The present day
marketers are consumer oriented where it is the duty of the manufacturers to know from

1
Associate Professor & Head, Department of Management, Gandhi Academy of Technical Education, Kodad

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where, when, how and what price the products would be available. Successful marketing
consists in offering the right product of the right price of the right place (and time) with right
promotion.
4. NEED FOR THE STUDY
This particular topic is chosen because every organization required sales promotion and
distribution to promote their product and services. Sales promotions and distribution are
playing a vital role in today's market. So it is important to know how far these promotional
activities are creating brand awareness in the minds of the customer and influencing them to
go for the products and services and also the need to increase the quality, creativity and
utilization of technology in the distribution and sales promotions.
5. OBJECTIVES OF THE STUDY
 To find out the opinion of customer about the perfect promotion technique.
 To find out the opinion of the customer on the subject, sales promotion.
 To find out the ways to promote the product so that it reaches the high standards.
 To know how well the product TVS is doing well in the market.
 To know how well the product TVS is withstanding on their words, which makes it to
increase the sales.
 To determine the share of the TVS in two-wheeler by directly questioning the
customer.
6. ABOUT TVS MOTORS
TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-
wheeler manufacturers. With a turnover of over Rs.2800 crores, the Company manufactures a
wide range of motorcycles, scooters, mopeds.
With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became
the first Indian company to introduce 100 cc Indo-Japanese motorcycles in September 1984.
Through an amicable agreement the two companies parted ways in September 2001.
Today TVS Motor Company has the largest market share in the moped category and
is also the undisputed leader in the scooterette segment. It also holds a considerable market
share-in motorcycles.
With a strong sales and service network of 500 Authorized Dealerships, 1018
Authorized Service Centers and over 864 Certified Service Points, TVS is growing from
strength to strength. The company manufactures its motorcycles, scooters and mopeds at its
state-of-the-art factories in Mysore and Hosur.
Various TVS two-wheelers

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6.1 TVS offers a wide range of two-wheelers:

Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100 / TVS/Max 100R
Scooterettes - TVS Scooty Pep/ TVS Scooty 2S
Mopeds - TVS XL Super/ TVS XL Super HD
7. IN GENERAL PROMOTION FALLS IN TO THREE MAIN CATEGORIES:
Final Customer Promotion Manufacturer Promotion to the channels or Trade
Promotion. Channel originated Promotion, or Retailer Promotion.
Final Customer Promotion comes directly to the Customer from the manufacturer.
Trade Promotion, in contrast, is directed at intermediate channels of distribution in an attempt
both to get them to buy more of a product and to commit their own effort to "pushing" the
product through the nest channel and ultimately to the consumer. Channel-originated
Promotions are run by the channel itself to either the next channel in the distribution chain or
to final Customers.
For consumer packaged goods sold through supermarkets, retailer Promotions are an
especially visible form of Promotions. Displays, feature advertising, and price deals (price
cuts, free merchandise, and retailer-issued coupons) all affect sales and profits and either
augment or detract from manufacturers direct Customer Promotions. In general, the purpose
of channel Promotions is to increase sales pf all products to the Customer.
Promotion objectives and programs may be gathering offensive, or defensive.
Offensive Promotion attempt to gain an advantage through exclusively: being the only
company to offer a particular Promotion or level of Promotion support. In most markets, how
ever, competitors quickly match Promotions. On top of that, in some areas, notably consumer
packaged goods; the channels have become sufficiently powerful to both demand and
schedule Promotions. The result is that companies, including those with household brand
names and dominant market shares, are promoting due more to a perceived necessity to
match competition and satisfy the channels than to a conviction that Promotions benefit the
manufacturer.
Many types of consumer products, service and industrial products use sales promotion
devices extensively. Short-term price discounts to consumers are very common in industrial
markets. In addition, farm equipment and office
Products manufacturers, for example, frequently target channel members for
promotions which may or may not passed on to the customers.

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Simplified Channel and Promotion Structure

8. DATA ANALYSIS & INTERPRETATION

1. Which is the best modal of TVS two wheeler?
Table-01

Options No. of Respondents Respondents in %

Apache 48 48%
Victor 38 38%
Fiero 8 8%
Star city 2 2%
Centra 4 4%
Total 100 100%

2. Did the salesperson spend sufficient time with you and explain everything about the
vehicle?
Table-02

No.of respondents in
Options No of respondents %
Yes 72 72%
No 28 28%
Total 100 100%

3. Is the vehicle delivered on promised time?

Table-03

Options No of respondents respondents in %

Yes 85 85%

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No 15 15%
Total 100 100%

4. Were you offered a test drive during your visit to our showroom?
Table-04

Options No of respondents respondents in %

Yes 60 60%
No 40 40%
Total 100 100%

5. How do you feel about TVS two wheeler vehicles?

Table-05

Options No. of Respondents Respondents in %

Excellent 22 22%
Good 30 30%
Moderate 18 18%
Satisfactory 24 24%
Unsatisfactory 6 6%
Total 100 100%

6. State the level of satisfaction for the service provided by Rangaraya TVS showroom?
Table-06

Options no of respondents respondents in %

Completely satisfied 8 8%
Satisfied 34 34%
Dissatisfied 18 18%
Not at all satisfied 14 14%
Neither Satisfied nor
Dissatisfied 26 26%
Total 100 100%

7. Whether brand name plays important role in purchase of TVS two wheeler?
Table-07
no of
Options respondents respondents in %
Yes 40 40%
No 60 60%
Total 100 100%

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8. What are the reasons to purchase TVS vehicles?

Table-08

Options no of respondents respondents in %

Mileage 80 80%
Low maintenance 60 60%
Brand name 30 30%
Price 75 75%
Wide range of products 20 20%
Total 100 100%

9. When did you owned TVS vehicles?

Table-09

Options no of respondents respondents in %

6month 18 18%
1-2years 32 32%
3years 38 38%
3-5years 12 12%
Total 100 100%

10. What are the improvements in service that you need from Rangaraya TVS Motors?
Table-10

Options no of respondents respondents in %

Service in time 32 32%
Reliable service 18 18%
Availability of spares 7 7%
Well trained mechanics 8 8%
Less labour charge 35 35%
Total 100 100%

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11. What are the different problems that you face at the time of service of your vehicle?
Table-11

Options no of respondents no of respondents in %

High Price of Spare parts 36 36%
Not easily available 17 17%
Delay in service 39 39%
Low quality of spare parts 7 7%
Total 100 100%

12. How do you rate the service performance of Rangaraya TVS.

Table-12

Options no of respondents no of respondents in %

Very Good 16 16%
Good 42 42%
Average 33 33%
Bad 9 9%
Very Bad 0 0%
Total 100 100%

13. How would you choose your preference on the following promotional schemes?
Table - 13

Criteria No. of respondents % of respondents

Price off 20 20%
Discount coupons 30 30%
Contents 10 10%
scratch card 10 10%
Cash refund 20 20%
Prizes 10 10%
Total 100 100

14 Do you think that Sales Promotional Activities that are adopted by forever bike are
according To the Consumer Perceptions?
TABLE:14

Criteria No. of respondents % of respondents

Yes 50 50%

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No 30 30%
Not Right Now 20 20%
Total 100 100

15. Do you think that Sales Promotional Activities has power to influence Sales happening?
TABLE: 4.15

Criteria No. of respondents % of respondents

Yes 65 65%
No 25 25%
Not Right Now 10 10%
Total 100 100

16. Does Sales Promotion Activities of Forever are better than others?
TABLE:16

Criteria No. of respondents % of respondents

YES 64 64%
NO 36 36%
Total 100 100

FINDINGS
 According to the survey it is found that most of the respondents have scooty(48%)
and victor(38%)and few of respondents have fiero ,star city and centra
 Most of the respondents (72%) are satisfied with the service of the salesman and least
number of respondents (28%) is not satisfied.
 To most of the respondents (85%) the vehicle is delivered on promised time. Only
few of the respondents(15%) vehicle is not delivered on promised time.
 60% of the respondents were offered test drive and 40% of Respondents were not
offered the test drive.
 According to the survey 30% of the respondents feel good and 24% Of respondents
feel satisfactory and 22% of the respondents feel excellent 18% of respondents feel
moderate and 6% of respondents feel unsatisfactory.
 Most of the respondents(34%) are satisfied and 26% of respondents Are neither
satisfied nor satisfied 18% of respondents are dissatisfied 14%of respondents are not
at all satisfied and 8% respondents are fully satisfied

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 Most of the respondents(60%) feel brand name is important 40% of the respondents
feel brand name is not important
 38% respondents purchased Vehicles before 3 years 32% of Respondents purchased
before 1- 2 years 18% of respondents Purchased before 6 months and 12% of
respondents purchased before 3 – 5 years
 Most of the respondents are need of less labour charges (35%)And Service in time
(32%) and 18% of respondents need reliable Service and few of the respondents need
well trained mechanics (8%) And availability of Spares (7%)
 Most of the respondents face the problem of delay in service (39%)And high price of
spare parts (36%) some of the respondents face problem of not easily availability of
spares (17%) and low quality Of spare parts (7%)
 Most of respondents rate the service performance as good (42%) And Average (33%)
some of the respondents rate as very good (16%) And bad (9%)
 Most of the respondents are need of increase in number of service stations to reach
maximum number customers.
 Most of the respondents have complaint about delay in availability of spare parts and
high price.
CONCLUSION
Sales Promotion is an important function of any Organization in today’s Market.
Sales Promotion deals with various promotion techniques for improving the Sales and
Brand awareness of TVS Brand two-wheelers. Knowing the importance of the Sales
Promotions in to-days Market, I want to conclude by saying that the TVS Brand two-
wheelers should carry out the various program's for increasing the Sales of TVS brand
two-wheelers in the Market.
References
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Allahabad.
 Grove and Fisk, "An Analytical Framework for Service Marketing, Prentice Hall,
USA, 2001.
 Christopher H. Lovelock (1999), Understanding services, Prentice Hall, International
Edition.

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 Kotler Philip (2004), Marketing Management, Tenth Edition, New Delhi, Prentice
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International Journal of Research in Applied Management, Science & Technology