TVS Victor

1
TVS Victor

• The story behind the smiles

2
Background
Motorcycle Market share of TVS-M
Market share loss From 23 to 20 in one year
3
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

4
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

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The Market - 2 stroke Vs 4 stroke
Volume
Market Share
2 strokes were declining in share and started
stagnating in volumes
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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).
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Customer feedback
Max R
Weaknesses
Strengths

• Rugged
• Low maintenance
• Affordability

• Mileage
• Styling

Splendor
Weaknesses
Strengths

• Fuel Economy
• Riding Comfort
• Better Style

• High Maintenance

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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
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Benchmarking with the consumer- Product Price
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Dynamic clinic - Pre and Post
Ranking by customers on styling
Style ranking during Styling clinic
Style ranking during Dynamic clinic
Initial feedback
Feedback after improvement
Customer feedback incorporated in styling
Resulted in best rank in its category
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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

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Our Final Product Offer
A better product than at a marginally lower price
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The Launch- Method of taking to Market
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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

15
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

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Sales on Wheels
Customers ride the Victor while the Salesmen sit
at the back and explain product benefits
features the concept behind SoW
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Brand PropositionCommunication
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Defining Attractive quality
Stated Importance
Mileage
High
Style
Power
Ride Comfort
Low
Ruggedness
Reliability
Uniqueness
High
Low
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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
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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
Laddered into
Control
Superior Ride Experience
Consumer research ORG Marg
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Brand Communication

• 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

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Brand Mnemonic
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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
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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

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Status Today- Victor Competition
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Market Share - Victor
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Victor Competition

• Hero Honda forced to drop prices
• For the 1st time in their history in Apr 02
• Followed by another drop in Aug02
• Victor enjoying a price premium against Splendor
  in all markets

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The source of strength at TVS

• Resilience
• Hard Work directed by logic
• Courage
• Grabbing Opportunity
• All pervasive passion for being good

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Keep Smiling