TVS Victor : TVS Victor The story behind the smiles…


Slide2: Background Motorcycle Market share of TVS-M Market share loss: From 23 % to 20 % in one year


Hero Honda & Mileage : Hero Honda & Mileage Launch of 4-stroke motorcycles – the “CD” series Launch of the classic “Fill it, Shut it, Forget it” campaign Redefined the customer requirements Market shift towards more mileage Launch of Splendor in ’94, a runaway success


TVS & Suzuki : TVS & Suzuki The first Indo Jap 100cc bike - 1984 Tried to establish power as a key choice factor Later opted for reliability Symbolised by the No Problem Samurai A partnership that lasted 17 years Took separate ways on account of differing ambitions TVS backed a vision that developed capability Demonstrated in XL Super & TVS Scooty


The Market - 2 stroke Vs 4 stroke: The Market - 2 stroke Vs 4 stroke Volume Market Share 2 strokes were declining in share and started stagnating in volumes


Slide6: Customer requirement study Study conducted to formulate the target quality through customer voice Identified Hero Honda Splendor and TVS Max 100 R strong markets Name : Mr.Raju Haratti – Field officer in Sugar factory User of Splendor , Daily travels 50 to 60 kms “I bought Splendor for its mileage and not beauty. It is a ‘Gatti gadi’ (strong) and fit for rough roads. Repair cost in Splendor is very high”. Name : Mr.Vishnu Reddy – Agriculturist User of Max100 R , Daily travels 30 to 40 kms “Max R can be used roughly and can carry 3 persons easily. In Hero Honda ‘Kir Kiri Jasti’ (troublesome – bothering).


Slide7: Strengths Rugged Low maintenance Affordability Weaknesses Mileage Styling Customer feedback Max R Strengths Weaknesses Fuel Economy Riding Comfort Better Style High Maintenance Splendor


Slide8: Target Quality Must be quality Mileage (65kmpl) Deal Stopper Reliability Desirable quality Style Satisfiers Ruggedness Power Attractive quality Ride Comfort Balance Tilters and Handling Product that could beat Splendor and replace Max 100R


Benchmarking with the consumer- Product & Price: Benchmarking with the consumer - Product & Price


Slide10: Dynamic clinic - Pre and Post Ranking by customers on styling Resulted in best rank in its category Style ranking during Dynamic clinic Style ranking during Styling clinic Customer feedback incorporated in styling Initial feedback Feedback after improvement


Recommended Price: Recommended Price Splendor at Rs. 42,500 is the benchmark price in the market today, at the moment Keeping in mind the above and, Market Research recommendations – Rs. 38,000-42,000 Business proposition – Rs. 41,800 Recommend an ex-showroom price of Rs. 41,000 (Bangalore) A price difference of Rs. 1500 between Victor GL and Splendor – this will decide differential pricing state-wise


Our Final Product Offer: Our Final Product Offer A better product than at a marginally lower price


The Launch- Method of taking to Market: The Launch - Method of taking to Market


Managing Expectations - External: Managing Expectations - External Autoexperts’ personal feel & experience - extensive testing on all conditions Assessments by all leading auto magazines Source of reassurance to customers Building credibility around the product Shootouts by automagazines with top ratings across, against leading competitor brands


Managing Expectations - Internal: Managing Expectations - Internal Comparative test rides and sales training to all involved parties Marketing & Sales staff Dealers (Leading to personal involvement in the sales process) Dealer sales & service people Private Garage Mechanics Leading to “Sales on Wheels” Demonstrative method of explaining product benefits & superiorities Customers’ personal feel of the bike during the sales talk


Sales on Wheels: Sales on Wheels Customers ride the Victor while the Salesmen sit at the back and explain product benefits & features – the concept behind SoW


Brand Proposition&Communication: Brand Proposition & Communication


Defining Attractive quality: Defining Attractive quality Stated Importance Uniqueness High Low Low High Mileage Reliability Style Power Ruggedness Ride Comfort


Slide19: Brand propositions - Mileage & Style Style seen to be Modern and Attractive *. But, Style is a continuously evolving proposition Involving quick turnaround of product variants In the Popular segment, a choice factor Honda is the benchmark with CBZ & Passion 2. Mileage stated as the most important need today, Honda occupies this position in the consumer mind We offer parity on this parameter Has become a hygiene factor & all players offer similar mileage Hence, both Style & Mileage not options for us * Consumer research – ORG Marg


Slide20: Possible proposition for us Ride Comfort is seen as the ‘Attractive Quality’ for this product* Power / Acceleration of the bike is also seen to be higher as compared to its competitors * Ride Comfort Power / Acceleration Control Laddered into Superior Ride Experience * Consumer research – ORG Marg


Slide21: Splendor- perceived as a mileage bike. Superior Riding experience translated into customer being confident and happy post a ride on the vehicle Communication was pitched on, ‘Smileage’ (Smiles + Mileage) Hence the baseline, ‘More Smiles per hour’ Brand Communication


Slide22: Brand Mnemonic


Communication – the package: Communication – the package Built around an understanding of consumer needs Two issues to address Tell me about the product How do you want me to feel Addressing both the heart and the head ACTION: Theme ad to address the heart – 1 TVC Product ad (Feature-benefit) to address the head – 3 TVCs


Why & Who as a Brand Ambassador : Why & Who as a Brand Ambassador Growth faster than expected on Victor Limited visibility for TVS in the North & West After Suzuki we needed rapid salience build up Needed a marriage on performance Between TVS & the celebrity Sports and films sources to consider In a high salience cricket year the solution was obvious


Status Today- Victor & Competition : Status Today - Victor & Competition


Slide26: Market Share - Victor


Victor & Competition: Victor & Competition Hero Honda forced to drop prices For the 1st time in their history in Apr ’02 Followed by another drop in Aug’02 Victor enjoying a price premium against Splendor in all markets


The source of strength at TVS: The source of strength at TVS Resilience Hard Work directed by logic Courage Grabbing Opportunity All pervasive passion for being good


Slide29: Keep Smiling