TVS Tyres Project

Introduction

Problem Statement

• TVS Tyres has been operating in the tyre industry for more than 3 decades but still it has not been able to
penetrate the market the way it desired to.
• With continuous dip in market share and decreasing sales TVS wants to re-position its tyre brand in the
market albeit with a new product

Objective

• To study the purchase behavior and decision-making process of consumers before purchasing tyres
• To study the parameters which drives the consumers to the purchase decision
• To gather consumer insights as how TVS should position its tyre project
Research Methodology

• Primary and secondary data was collected for the research purpose
• Data was collected from field Survey done through a Questionnaire
• A five step decision making matrix was followed for preparing the questionnaire
Project Specifications
• Respondents: - 30

• Location: - Delhi/NCR

• Gender: Male

• Age:25-45

• Employment Status: Employed

• SEC Classification:- A

• Type of Vehicle Owned

Mix of Car and Two Wheelers Owners
Single Car Owners
Single Two Wheelers Owners
 Problem Recognition
Problems that prompted to change vehicle tyres

20 Problem Recognition
18
18 Top Problems
16
Problem % Of Respondents
14
12
RESPONDENTS

12 11
10 Early Wear & Tear 60
10
8 Low tread life 40
6
6
4 Frequent Flay Tyres 36.70
4
2 1 Tyre Grip 33
0
Early Wear & Tyre Grip Low Tread Life After Sales Tyre Scuff Frequent Flat Balance
Tear Service Tyres

• Early wear and Tear was found to be the most prominent problem for change in tyres
• 60% of the respondents recognized as the primary problem for change in tyres
• Frequent Flat tyres and Low tread life were found to be another prominent problems that consumers face
 Brand Awareness
Awareness (Unaided) Awareness (Aided)
Goodyear 10 Goodyear 22

CEAT 15 CEAT 26

Bridgestone 20 Bridgestone 26

Apollo 15 Apollo 24

MRF 26 MRF 29

Yamaha 8 Yamaha 19

Michelin 18 Michelin 28

Yokohama 16 Yokohama 25

TVS Tyres 12 TVS Tyres 23

0 5 10 15 20 25 30 0 5 10 15 20 25 30 35

Brands No. of Respondents % of Awareness

• MRF, Bridgestone and Michelin have strong brand awareness MRF 26 86.66666667
Bridgestone 20 66.66666667
• Almost 90% of the respondents were aware of MRF indicating a
Michelin 18 60
strong brand recall Yokohama 16 53.33333333
• TVS has a low brand recall of 40% indicating a laggard in the CEAT 15 50
industry Apollo 15 50
TVS Tyres 12 40
Goodyear 10 33.33333333
Yamaha 8 26.66666667
 Current Ownership Experience

CURRENT BRAND
Experience Chart
5
Goodyear Tvs Tyres
10% 7% 4.5

Yokohama 4
CEAT
13%
10% 3.5

Bridgestone 2.5
7%
Michelin 2
Apollo 13%
3% 1.5

1
Yamaha
3% 0.5

0
MRF TVS Yamaha Apollo Bridgestone CEAT Goodyear Yokohama Michelin MRF
34%
Price Safety Reliability After Sales Service Warranty Brand Name Premium

• 1/3rd of the market is dominated by MRF in terms of market share signalling a deep penetration
• Yokohama and Michelin are considered to be the premium brands and enjoy strong brand name
• With 7% market penetration, users do not consider TVS Tyres reliable
 Positioning Parameters
Reliability Popularity
4.50 4.2
3.90 3.90 4.5 4.1
4.00 3.70 3.9 3.9
3.50 3.47 4.0 3.7 3.6
3.37 3.3
3.50 3.07 3.10 3.5 3.0
3.00 3.0
2.37 2.5 2.3
2.50
2.0
2.00
1.5
1.50 1.0 1.11
0.92 0.76
1.00 0.95 0.5 0.55 0.64 0.64 0.52
0.86 0.78 0.42 0.40
0.50 0.59 0.51 0.55 0.42 0.51 0.0
0.33
0.00

Average Variance
Average Variance

• Bridgestone and Michelin are considered to be the • MRF stands out as being the most popular brand with
most reliable but have a high variance implying low variations
variations among consumers perspective • Bridgestone and Michelin enjoy high popularity but
• MRF has positioned itself reliable with low variance with high variations
implying uniformity among consumers • TVS is least popular which almost 55% variations which
• TVS Tyres is not considered reliable but its high is alarming
variance indicates that perspective varies largely
among consumers
 Value For Money
4.50
4.00 3.70
4.00
3.80
3.63 3.73 • MRF and Michelin provides the best value for money
3.43
3.50 3.27
2.97
3.27
to consumers
3.00
2.50
• TVS is also considered to have good value for money
2.00 given the price considerations
1.50
1.00
• There is no relation between brands in respondents
0.50 0.56
0.34
0.55 0.52 0.44 0.55 0.45 0.53 0.41 perception
0.00

Average Variance
Premium
4.50
4.03 3.93
4.00 3.77 3.70
3.57 3.47
3.50 3.33
3.00
• Michelin is perceived as a premium brand in the 3.00
2.50 2.20
market 2.00
• TVS Tyres lags to project itself as a premium brand 1.50

• Though high variance indicates large variations in 1.00

0.50
0.92
0.67 0.59
0.76 0.67
1.06
0.56
0.41 0.46
perception among different consumers 0.00

Average Variance
 After Sales Service Quality
4.50 4.50
4.03 4.00 3.90 3.90
4.00 3.83 3.83 3.70 4.00 3.67
3.50 3.37
3.50 3.27 3.23 3.33 3.30 3.50 3.33
3.10
2.90
3.00 3.00
2.47
2.50 2.50
2.00 2.00
1.50 1.50
1.00 1.00 1.00
0.67 0.71 0.67 0.64 0.58 0.65
0.50 0.42 0.44 0.49 0.53 0.50 0.44
0.34 0.35 0.36 0.34 0.37 0.23
0.00 0.00

Average Variance Average Variance

• MRF and Michelin dominates the market as having the • MRF and Michelin have successfully projected
most effective after sales service themselves as quality brands
• With variance of 0.35 and 0.42 respectively it implies • 2.47 clearly indicates TVS tyres lacks in quality
that there is less variation among the recordings of the • High variance indicates the difference in opinion of
respondents respondents
• TVS is ranked 6th among the brands but with a variance
of 0.34 people are more than satisfied with their
service
 Decision Making Factors
Decision Making

30
26
24
25

20 18
17 17
15
15

10
6

0
Price Safety Reliability After Sales Tread Life Brand Look and
Service Name Feel

• Most consumers consider reliability before making
purchase decision especially wear and tear
• Safety is considered second most with price being a
distant third
• TVS Should project their new product as safe and
reliable with a competitive price entrant
• Safety, Reliability and Price are the most critical
factors in the decision making process
• It indicates that the new product should be projected
as safe and reliable with long life and strong grip
• Look and feel, Brand Name are the least important
factors to be considered
 Decision Influencers
Recommendation
25

20
21 • 70% influence clearly indicates Auto Mechanics have a
major role in tyre decision making
15 • Friends and Family also substantially influence the
13

10
11
10
purchase decision
9
• TVS should specifically target their campaigns towards
5 Auto Mechanics for their project
3

0
Retailers Friends Family Auto Mechanic Relatives Car Service
Newspaper
Centres
Advertisements Information Source
1%
Manufacturer
12%
• 20% of the respondents consider Tire Stores as a
important information source Auto Mechanic
• 17% consider Auto Mechanic while 16% rely on T.V Social Media
17%

Tire Stores
advertisements 8%
20%

• Indicating tyre industry is still dependent on Friends & Family

13%
traditional media Magazine
Articles
T.V Advertisements 13%
16%
 Purchase Preference
Multi Brand Store
Advertising 0
Specific Brands Availability 4
Former Experience 5
Price Recommendation 8
Window Shoping 1
New Products Availability 12
Variety 9
Quality Comparison 17
Accessibility 5

0 2 4 6 8 10 12 14 16 18

Preferred Store

• Quality comparison is the primary

Single Brand Retail
reason why consumers prefer multi 40%

brand store Multi Brand Retail

60%
• New product availability and variety are
other factors considered
• Positioning on the basis of quality
material should be done through MBS
 Post Purchase Evaluation
Default Factors
30 27
24
25 24

20

15 14
15
10

5 9

0
Long Tread
Strong Grip
Life Value for
Long run
Money After Sales
with Flat Look and
tyres Service
Feel