MARKET RESEARCH ON INSTITUTIONAL CUSTOMER

REQUIREMENT IN ICV SEGMENT

Summer project report submitted in partial fulfillment of the requirements for the

Post graduate diploma in management.

SUBMITTED BY:

PRIYANKA

Roll No. - 60

PGDM 2014-16

Supervisors:

Company guide: Mr. Purusothaman. C

Alumni guide: Mr. Ankur Varshney
Faculty guide: Dr. Janki Niak

KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT STUDIES, HARIHAR,

KARNATAKA (PGDM-2014)

1
 ACKNOWLEDGEMENT

With an overwhelming sense of gratitude, I want to thank Kirloskar Institute of Advanced

Management Studies for giving me the opportunity of internship. This internship has been a
very good experience for me in the way; it has given me the chance to understand the real world
outside the classroom. Internship nurtures the interpersonal skills and helps to know about office
environment.
Words are inadequate to offer my profound gratitude to Ashok Leyland Limited for providing
me a platform to work in Regional Sales Office, Hosur, Tamil Nadu under the guidance Mr. C.
Purusothaman (Manager- RSO).
The completion of this project would have been not possible if not dependent on the steadfast
support and encouragement from Mr. Rajesh Kannan S (Private Bus Sales), Mr. Sai
Subramanian (ASM) & Mr. Arivazagan. N (ASE), their guidance and motivation has created
a path for me to work in correct manner.
I take this opportunity to express a very special thanks to my Faculty guide Dr. Janki Naik and
my Alumni Student guide Mr. Ankur Varshney for their cooperation, inputs, suggestions, and
guidance throughout the tenure of the project.
At last, I would like to thank the staff members of the company, dealers, Educational Institution
for sharing their valuable knowledge, feedbacks, suggestions & time to carry out the research.

Priyanka

Roll no. 60

Batch 2014-16

2
 TABLE OF CONTENT

Sr. No. Page No.

1. Title Page 1

2. Acknowledgements 2

3. Table of contents 3

4. Executive Summary 4

5. Introduction 5

6. Objectives of the study 6

7. Brief about the industry / organization where the study was carried out 7

8. Methodology followed 14

9. Tabulation and findings / results 24

10. Brief description of the concept/model introduced in the study 36

11. Interpretations and conclusions / summary 38

12. Recommendations 40

13. Limitations of the study 41

14. Scope for future improvements 42

15. Bibliography 43

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 EXECUTIVE SUMMARY

Ashok Leyland ltd., an Indian automobiles manufacturing company has given me a topic to do
market research for its ICV (Intermediate Commercial Vehicle) Lynx & Stag. The two variant
in school bus with a seating capacity of 28seater to 50seater having a tonnage of 9 to 12 for
Institutional requirement involved in education. This market research has been done to identify
the suitable requirement in ICV segment for Educational Institute and the specification needed
by a particular segment of customers, doing competitive analysis, giving value based suggestion
that will help company to increase the sales of school buses and will enhance the market reach to
bridge the gap between competitors.

The report will mainly deal with the findings of Educational Institutes requirements and analysis
of school buses in different Talukas of Krishnagiri District.

Firstly, I have to know the specified norms provided by government for school buses,
considering the specifications provided by our brand. This research involves identifying the
Educational Institutions that provides bus service to the students to know their feedbacks.
Meeting dealers of Ashok Leyland to get suggestions on customers requirement from their side
so that improvements can be made by the company in order to increase Ashok Leyland sales.
Identification & Collection of data through brochures and going to Dealership of competitors
brand - Tata Motors(TML) , Eicher (EML) , Mahindra & Mahindra(M&M) , Swaraj
Mazda(SML) to determine the Variants provided by them with various seating range, their
specification, features and prices. Framing an idea about the market reach, sale of product,
customers perception and requirement.

Secondly, Analyzing the Information gathered to list down the specific features required in a
school bus in this segment, including valuable inputs from users and dealers, suggesting
company about the requirement of customers to increase its customer based sales and market
reach.

To get the most exact and accurate data, I personally interacted with Educational Institutes and
Dealers. In this report, I have tried my level best to depict my experience with people mentioned
above.

4
 INTRODUCTION

The automotive industry is wide range of companies and organizations involved in the design,
development, manufacturing, marketing and selling of motor vehicles. It is one of the worlds
important economic sectors by revenue. According to the data of 2013, India ranks amongst the
6th producers of automotive having a production unit of 38, 80,938.

Under the automobile industry there is segment for Bus. In Bus segment, Ashok Leyland
continues to lead with over 50% Market share in M&HCV (Medium& Heavy Commercial
Vehicle).

Bus segment has a sub-segment - School Bus. This segment of School Bus comes under ICV
which ranges in-between 9 Tonnage to 12 Tonnage, It has a seating capacity of 28 50seater.
Ashok Leyland is having 18% Market Share in the ICV segment. Tata motors continues to
be in lead in ICV segment with its Starbus with around 40% Market Share followed by
Swaraj Mazda & Eicher.

Ashok Leyland is having a market Share of around 26% in Tamil Nadu, where the annual
sales of school buses in Krishnagiri district is about 14 to 18Nos and they have to achieve a
target of 30Nos.

Perception of customers, its research and analysis: The project aims to know the suitable
requirement of seat variant with specification needed in ICV segment by Educational Institute.
Providing them the required specification at a nominal price, doing competitive analysis
knowing the reasons for buying competitors brands from the customers. The products need to be
reaching to the consumer by giving them more profit than competitors, because it is the era of
competition, consumer will go where they get more profit. So, useful suggestions can be made,
which can attract consumers to boost the sales of Lynx & Stag school buses and augment the
market reach to bridge the gap between competitors.

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 OBJECTIVE OF THE STUDY

To derive the suitable requirement in ICV segment of Ashok Leylands Lynx and Stag for
Educational Institute. Doing alternate evaluation & giving value based suggestion to increase the
sales of school buses that will enhance the market reach to bridge the gap between competitors.

To achieve this ambition following intent has to be achieved:

Understanding requirement of Educational Institution drafting its Price, Quality, Model, and
other specification needed.

Visiting Academic Institution of Krishnagiri to know their preferences through Questionnaire.

Meeting & having telephonic conversation with Ashok Leylands Dealers in Tamil Nadu to
know the current sales, customers requirement & preference.

Meeting Dealers of EML, SML, TML and M&M to know some of the information about their
brands.

Outlining preferred Seating range with other specifications needed in connection to price
affordability.

Alternate Evaluation.

Plotting customers requirement.

Knowing reasons of dis-satisfied customers of Ashok Leyland.

Suggesting Value Preposition.

Value based recommendation for improvement will help to increase its market in ICV segment.

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 DESCRIPTION ABOUT THE COMPANY

Ashok Leyland:

Ashok Leyland is an Indian Automobile manufacturing company based in Chennai, Tamil

Nadu. The Company is under the Flagship of Hinduja Group, a British based and Indian
originated trans-national conglomerate. Ashok Motors was incorporated in 1948 as a company
to assemble and manufacture Austin Car from England, by Mr. Raghunandan Saran. It is one of
the largest commercial Vehicle manufacturers in India with a turnover of US $ 2.3 billion in
2012-2013.
Ashok Leyland is Indias largest Exporter of M&HCVs having its chief competitors as-
Mahindra, Volvo, and Tata Motors. It sells close to 83,000 M&HV each year. The company has
a near 98.5% market share in the Marine Diesel engine markets in India. At 60
million passengers a day, Ashok Leyland buses carry more people than the entire Indian
Railway network. It has also one of the largest private sector employers in India- with about
16,000 employees working in 7 factories in India looking forward to enhance the scope of its
action.
1. Ennore, Tamil Nadu
2. Hosur: Unit 1, Tamil Nadu
3. Hosur: Unit 2, Tamil Nadu
4. Hosur: Unit 2A, Tamil Nadu
5. Alwar, Rajasthan
6. Bhandara, Maharashtra
7. Pantnagar, Uttarakhand

The current M.D is Mr. Vinod K Dasari who is looking forward to make it more globally
accessible.

Some of the products offered are: Mitr (Bus), U-Truck, Comet, Tippers, Dost (SCV), Partner
(LCV) etc. From 18seater to 82seater double-decker buses, from 7.5tonne to 49tonne
in Haulage vehicles, from numerous special application vehicles to Diesel engines
for industrial, marine and genset applications, Ashok Leyland offers a wide range of products.

LYNX & STAG are the two variant in school buses offered by Ashok Leyland in ICV
(Intermediate Commercial Vehicle) Segment.

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 The Five AL Values are:

1. International.
2. Speedy.
3. Value Creator.
4. Innovative.
5. Ethical.

Vision
Be in the Global Top 10 in Medium & Heavy Commercial Vehicle Trucks (> 7.5T GVW)
&
Global Top 5 in Medium & Heavy Commercial Vehicle Buses (8M and above) in Volume terms

Mission
Identifying with the customer.
Being the lowest cost manufacture.
Global benchmarking our products, processes and people.

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 Quality Policy

Ashok Leyland is committed to provide world class products and services to delight customers
while complying with all regulatory requirements.

Towards this, we will implement Total Quality Management with the involvement of all our
employees, suppliers and network partners by:

Aligning all activities towards out vision To be in the Global Top 10 in Medium &
Heavy Commercial Vehicle Trucks (> 7.5T GVW) & Global Top 5 in Medium & Heavy
Commercial Vehicle Buses (8M and above) in Volume terms.

Continually improving our products & processes to deliver superior value to all
stakeholders.

Nurturing a culture of excellence and innovation.

MANAGING DIRECTOR
(2013)

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About the industry:

India is an important educational center in the global education industry. India has more than
1.4 million schools and more than 35,000 higher education institutes and there is still a lot of
potential for further development in the education system.

In this potential to grow educational institutes are having a requirement for school buses. School
Bus represents a vital link in the transportation of school children in India. Reliable schools
require a significant number of school buses to ensure that the children will be able to get to and
from school properly. Indeed, the school bus segment is one of the most important money
spinners for commercial vehicle manufacturers are ever increasing day by day.

Direction of the Supreme Court of India for School Bus:

School Bus must be written on the back and front of the Bus.
If it is a hired bus, On School Duty should be clearly indicated.
Bus must have a First-Aid-Box.
The windows of Bus must be fitted with horizontal grills.
There must be a Fire Extinguisher in the Bus.
School Name and Telephone No. must be written on the Bus.
The doors of the Bus should be fitted with reliable locks.
To keep School Bags safely, there should be a space fitted under the seats.
School cabs should be fit with speed governors with maximum speed limit of 40Kmph.
The body of school Bus shall be highway yellow color with a horizontal strip in green
color of 150mm width in the middle all around the vehicle and the words SCHOOL
BUS must be prominently displayed on all four sides of the vehicle.
There must be enough space provided to keep school bags inside the vehicle and the bags
should not be hung outside the vehicle or placed on roof carriers.
Two emergency exits are mandatory on all school buses in India. One on the rear half of
the bus on the right hand side and on the rear side of the bus. Children should be trained
to operate these doors.
Whenever the bus passenger door or one of the emergency exits is open, the bus should
be incapable of motion. The driver should get an indication of the doors being open by
means of flashing light/buzzer or other suitable means.
The lowest footstep height shall not be more than 220mm from ground. The bus should
be incapable of motion without folding or retracting the steps.
All seats other than the ones facing the passenger step well should be forward facing.
Also, a partition should be provided to the seat facing the step well.
Stopping signals, a hazard warning and a stop signal arm should operate whenever the
passenger door opens.
A tamper-proof speed governor that complies with the requirements of Rule 118 of CMV
(A) R 1989 should be provided to ensure the driver doesnt cross the speed limit.

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Commercial Vehicle manufacturers took the government specified norms for school buses as a
huge opportunity to offer factory made Fully Built Buses (FBV) complying with all the design
and safety standards with certain student friendly features at a nominal price with various seating
capacity options.

The school Bus market is rapidly growing segment. Of the 60,000 buses sold in India annually,
Schools account for nearly 10,000. This segment has grown at 20% the last 5years. The potential
can also be gauged by the fact that there are 14 Lakh schools across the country & only near
about 5 Lakh schools have school buses, which means 65% of the school market is still
untapped.

The major producers of buses in India are Ashok Leyland, TML, SML, EML and M&M.
However, there are huge sub-categories of buses like commuter Bus, School Bus, Electric bus,
tourist bus, and Mini bus and so on. In India, CNG buses have occupied the huge market thus
making it a fuel efficient and environmental friendly vehicle.

According to industry estimates, about 80% of School Bus sales happen during March
July.

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LYNX AND STAG:

These models have been created by Ashok Leyland to provide high standard safety when it
comes to children. It has been designed to support educational institute and share the
responsibility by providing them with the-state-of-the-art transport solutions that ensures highest
standards of safety, with an ultra- low entry foot step. It provides the children with individual
seat belts in specific seats, hand-rest on the aisle seats, also keep them safe and prevent them
from falling in case of sharp turns. The large windows are guarded with grills to provide the
children with fresh air without fear. It is also equipped with fire extinguisher, first aid kit & 2
Emergency exits in case of emergency.

Ashok Leyland tries it level best to provide the passengers with a comfortable travel experience
that is economic and travel free.

In Lynx: No. of seats available 37 + D, 41 + D &49 + D

In Stag: No. of seats available 28 + D, 34 + D &40 + D

Competitor Brands:

TATA: Tata Motors is the world's fourth largest bus manufacturer with the most complete range
of transit vehicles that meet every need of every segment with technological benchmarks. It
manufactures a variety of premium buses and coaches that cater to the entire gamut of utility
vehicles and applications, from luxurious inter-city travel options to safe transport choices for
school going children. So whether you want to ensure that your child reaches school safely or
wishes to take your family out on a holiday trip to the nearby hotspot, buses from Tata Motors
guarantee a journey that is pleasant and comfortable.

In Starbus Skool 16seater, 20seater, 26seater, 36seater, 40seater & 52seater

In Starbus Ultra Skool 30seater, 36seater, 42seater, 46seater & 56seater.

In CityRide Ex Skool - 12seater, 16seater, 20seater, 26seater, 36seater, 40seater & 50seater.

In SkoolMan 56seater with (3 X 2) Layout.

Even they have School Winger and vans (6seater to 12Seater) for school purpose.

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MAHINDRA: Mahindras idea is to build company around core idea that people will succeed
only when they have opportunities. Internally, it follows three basic tenetsaccepting no limits,
thinking alternatively, and driving positive change in everything we do. These brand pillars
guide all their actions and business decisions from deciding whether or not to enter a new field or
planning a portfolio of services.

They are also trying to utilize the potential market of school buses having a range of school
buses in CRDs and CNG engines.

In Touristor Excelo 15seater, 25seater, 32seater & 36seater.

In Tourister Cosmo 16seater, 25seater, 32seater & 40seater.

SWARAJ MAZDA: ML Isuzu Limited (SMLI) is a trusted and reliable commercial vehicle
manufacturer since 1985. SMLI is a first company to manufacture fully built buses, and
customized Vehicles.

Sumitomo Corporation, Japan & Isuzu Motors, Japan respectively holds 44% and 15%
shareholding in the company.

The company also offers school buses to the Educational Institute and provides vehicles
designed for new generation with new ideas.

They have two models S7 and Turbo T3500

Turbo T3500 18seater, 20seater, 24seater, 26seater, 32seater &40seater.

S7 41seater.

EICHER: The new Starline and Skyline school buses of Eicher buses are offering superior
vehicle performance with safety feature, superior comfort and redefined styling. Jointly designed
by Eicher & IRTE (Institute Of Road traffic education) the bus offers safe and sound journey to
children with care and comfort.

Starline - 16seater, 40seater & 56seater.

Skyline - 24seater, 32seater, 50seater & 65seater.

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 METHODOLOGY

Methodology for the Project Market Research on Institutional Customer requirement in ICV
segment includes Market Research. However, it includes Primary collection of data. Primary
collection of data has been done with a Questionnaire which was prepared by me & is unbiased
and unambiguous.

The data was collected through face to face in-depth interview and through phone interview from
Dealers of Ashok Leyland and Educational Institutes in Krishnagiri district.

The information from different Dealers of other brands has been collected as a student of
Kirloskar Institute of Advanced Management Studies doing a survey on ICV Segment. For these
dealers a Questionnaire has been prepared by me to know the relevant information and findings.

List of Educational Institute in Krishnagiri District is company database. As well assume of the
information related to the Dealership of our brand and Competitors brand has been provided by
the company.

Firstly I interacted with Ashok Leyland Dealers collecting the Brochure & Information about the
models, specifications, features, price, getting an over view of all the safety features- design and
layout recommended by the government for the safety of the student. Getting an idea about
customers preferences and wants. Then interacting with competitors brand dealership.
Collecting the Brochure and Information related to my prepared questionnaire about price,
models, customers preferred seating range, customers expectations, no. of service center, sales,
their scheme and offerings to customers. Lastly, Interacting with Educational Institute knowing
about the brand & model they use, what are their buying preferences, seating preference,
expected price range with value addition & suggestion from their side to Ashok Leyland,
feedback about LYNX and STAG, etc.

Face to face Interaction/

Market Research Questionnaire
Telephonic Interview

Categories of research:
1. Educational Institute.
2. Dealers Research.

14
Steps followed:
1. Form a sample size, prepare a relevant questionnaire.
2. Collect the data/information from ICV dealers, Educational Institutions
3. Record the data.
4. Analyze and interpret the findings.
5. Give suggestions and feedback to the companies.

Sample size

Under ICV (Intermediate commercial vehicle) segment school bus lies in the range of 9tonnage
to 12tonnage having a seating capacity of 28seater to 50seater and are meant for educational
purpose.

There was a dealership fair in Krishnagiri, where I had face to face interaction with the dealers
and I have collected the accurate data about the product and customers from the under mentioned
dealers.

TVS Authorized Dealer of Ashok Leyland.

1. Krishnagiri
Selam
2.
Madhurai
3.
Nammakkal
4.
Sangagiri
5.

I had face to face interaction with the Dealers of other brand to gather informations regarding
their brand, sales, features and their satisfaction level according to their brand.

1. TML VST Motors ltd. Hosur, Tamil Nadu.

2. EML Jai Laxmi Auto workshop & agencies Pvt. Ltd.
3. M&M Ari ARN Motors.
4. SML SML Isuzu Ltd.

15
I have collected data from 50 educational Institute in Krishnagiri district. I have taken it with a
considerable fleet varying from 3 school buses to 75school buses in different schools and
colleges.

1 St. John Bosco School. 2 Adhiyamaan Engineering College.

3 ParimalamMatriculation Higher 4 ShriBharatiVidayalayaMatriculation
Secondary School. Higher Secondary School.
5 Seventh Day. 6 KKP Matriculation School.
7 TVS Academy. 8 SRV Matriculation School of
Excellence.
9 MaharshiVidyaMandir. 10 Sri BCR Matriculation School.
11 Sishya School. 12 VelankaniMatriculation Higher
Secondary School.
13 Achievers Academy. 14 Sri SawarashwathiVidiyalaya.
15 Litera Valley Zee School. 16 Crescent Matriculation Higher
Secondary School.
17 Nalanda International Public School. 18 Euro Kids.
19 RIMS. 20 Mathagondapalli Model School.
21 SwathiMatriculation Higher Secondary 22 Shemford Futuristic School.
School.
23 Shri Vijay Vidayalaya Matriculation 24 ParimalamManimekala Engineering
Higher Secondary School. College.
25 St. Joshep Matriculation Higher 26 Manchester School.
Secondary school.
27 Green Valley School. 28 Holy Cross Matriculation Higher
Secondary School.
29 Sri Ramkrishna School. 30 Sri SawarashwathiVidiyalaya.
31 Advith International Academy. 32 Sri VidyaMandir Matriculation
School.
33 Siddharth Village School. 34 Dimond Stone International School.
35 Hosur Public School. 36 SVET Institute.
37 Ashok Leyland School. 38 Canara Insitute.
39 The Titan school. 40 Sri Annapurna School.
41 MGR. 42 Hosur Institute Of Technology
&Science.
43 CSI. 44 KET Polytechnic College.
45 St. Joshep ITI & Polytechnic. 46 Euro Kids.
47 Cambridge School. 48 Eternal Light Public School.
49 Bharat International School. 50 VIS.

16
Questionnaire 1: For Educational Institute:

Institution
Name
Strength :
Bus Hostel
Address

Contact
Name Contact Number Designation
Details
Primary
contact
Key Mgmt.
Person

1. The most preferred key factors in purchases.

BRAND MODEL

SITTING RANGE PRICE

(i) If Brand, please name the Brand.(please tick)

Ashok Leyland TATA Eicher SML

Mahindra Force Motors Swaraj Mazda Others__________

(ii) If Model ,please name the model (please tick)

Skyline Turbo T3500 Starbus Tourister Stag

Starline S7 Cityride Cosmo Lynx

(iii) If seating capacity, what is the preferred range _____________.

(iv) If Price, what is the price you are expecting ________________.

17
2. Number of vehicle you own in each variant:

Vehicle
28 to 50Seater (ICV) > 50Seater (MDV) <28Seater
Details
AL
EML
TML
SML
M&M
Total

3. Most preferred feature in ICV Segment:

Safety
Price affordability
Drivers comfort
Spacious & comfort
Mileage
Fuel capacity & Efficiency
Seating Range
Design & Looks
Cost of Maintenance
Spare Parts Availability
After sales service
Brand Reliability

4. Your buying preference:

Chassis
FBV

(i) What is the influencing factor for such kind of purchase? _____________________

(ii) From where you get finance for these vehicles? ____________________________

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5. On what factor your owned Vehicle in ICV segment is better than other brands Vehicle:

Safety and comfort

Price affordability
Accessories
Local Mechanics availability
Fuel capacity & Efficiency
Seating range
Body Building
Cost of maintenance
Spare part availability
Quality

6. If you own Ashok Leylands ICV. What problems you are facing currently:

Service center availability

Quality
Safety & comfort
Price affordability
Body Building
Fuel capacity & Efficiency
Cost of Maintenance
Spare parts availability
Accessories
Local Mechanics Availability
Sitting Range
Others please specify _ _ _ _ _ _ _ _ _ _ _ _

7. Are you planning to switch to another brand for new purchases?

Yes
No

If yes:
Brand__________________________________
Model__________________________________
Seating Range____________________________
Reason _________________________________

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8. Do you have any suggestions for improvement in ASHOK LEYLAND SCHOOL BUSES
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_____________________

**********************

20
 QUESTIONNAIRE 2: FOR DEALERS OF OTHER BRANDS

DEALERSHIP NAME:
LOCATION:
PERSON INCHARGE:
CONTACT: EMAIL ID:

1. Name of the brand you deal with:

Eicher(EML)
Tata Motors(TML)
Swaraj Mazda(SML)
Mahindra(M&M)

2. Number of School bus you sold monthly in ICV segment in Krishnagiri?

3. Models you have in ICV segment:

One
Two
Three
More than Four

4. Seat capacity you have in each model:

___________________________________________________________________________
___________________________________________________________________________

5. Price of these models according to Seating capacity:

MODEL SEAT CAPACITY PRICE

(i) Seating capacity mostly preferred by customers. ___________________________

(ii) Price range a customer expects. ___________________________

21
 6. Do you have your own Body- builder?

7. No. of service center you have in Krishnagiri?

8. Years of warranty provided by your brand

(I) Are there any schemes and offers provided by you to customers?
______________________________________________________________________________

9. Any suggestions given by the customers for improvement in school bus?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

10. Do you think any improvement can be done from your side to increase your sales?

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

*********************

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QUESTIONNAIRE 3: FOR DEALERS OF ASHOK LEYLAND:

DEALERSHIP NAME
LOCATION
PERSON INCHARGE
CONTACT NO. EMAIL ID:

1. Which model of school buses of Ashok Leyland is preferred more?

Stag
Lynx

2. Which seating capacity is more preferred by the customers?

26seater
32seater
38seater
34seater
39seater
47seater

(I) what is the price range a customer expects? _____________________

3. No. school buses you sell approximately in a month? ____________________

4. Suggestions given by customers to improve in Ashok Leylands School buses:

_________________________________________________________________________
_________________________________________________________________________

5. Suggestions or improvement for ASHOK LEYLANDs School buses.

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

***********************

23
 FINDINGS AND CONCLUSION

NUMBER OF VEHICLE SOLD IN TAMIL NADU

NAME OF THE BRAND NO. Of VEHICLES SOLD IN 2014 15

Ashok Leyland 274
EML 357
TML 164
SML 182
M&M 84
TOTAL 1061

No. of Vehicles sold in Tamil Nadu

M&M, 84
Ashok Leyland,
SML, 182
274

TML, 164

EML, 357

*As per company database.

INTERPRETATION: Eicher has sold highest no. of vehicles in Tamil Nadu i.e. 357.

Mahindra & Mahindra sold least no. of vehicles i.e. 84.

ASHOK LEYLAND being second highest seller in ICV segment in Tamil Nadu by selling
274 no. of vehicles.

24
Sales Trend of all brands in 2014 2015 in Krishnagiri District.

NAME OF THE BRAND NO. OF VEHICLE SOLD IN 2014 2015

Ashok Leyland 14

EML 17

TML 10

SML 7

M&M 4

TOTAL 52

NO. OF VEHICLES SOLD IN KRISHNAGIRI IN ICV SEGMENT(%) FOR

SCHOOL BUS
( 2014 - 15 )
Ashok Leyland EML TML SML M&M

8%
13% 27%

19%

33%

*As per company data base.

INTERPRETATION: In Krishnagiri District the highest no. of vehicle sold in FY2014 - 15 is by

Eicher i.e. 17 Nos.
Whereas, Ashok Leyland being 2nd sold 14 Nos. of vehicles in ICV segment.

25
*As per company data base:
In FY2013 2014, Ashok Leyland has sold 12Nos. of school bus & in the FY2014 2015, they
sold 14Nos. of school bus in Krishnagiri. It shows an increment of 16.67% in Krishnagiri
district. The company is currently having a Market Share of 27% and they are targeting to
achieve 40%Market Share in this Fiscal Year in Krishnagiri.

26
 FINDINGS ACCORDING TO MY STUDY

Preference given by customers during purchase of a school bus in ICV segment.

DECIDING FACTOR NO. OF RESPONDENT

BRAND 13
PRICE 14
MODEL 5
SEATING RANGE 18
TOTAL 50

DECIDING FACTOR
BRAND PRICE MODEL SEATING RANGE

26%
36%

10% 28%

*As per Institutional Feedback.

INTERPRETATION: For purchasing a School Bus the first thing Educational Institute look
into is Seating Range followed by Price than Brand.

27
IF BRAND:

BRAND NAME PREFRENCE

Ashok Leyland 15
EML 11
TML 7
SML 5

M&M 4

BRAND PREFRENCE IN ICV SEGMENT FOR

SCHOOL BUS

9%
12% 36%
Ashok Leyland
EML
17%
TML
SML
26% M&M

*As per Institutional Feedback.

INTERPRETATION: According to the above graph Ashok Leyland is mostly preferred brand by
Educational Institute in Krishnagiri.

28
IF MODEL:

MODEL PREFRENCE IN ICV SEGMENT FOR

SCHOOL BUS
Skyline
Starline
Skyline, 1 Starbus
Tourister, 1
Cityride
Turbo T3500

Starbus, 1 S7
Lynx
Starline, 2
Stag
Tourister
Cosmo

*As per Institutional Feedback.

INTERPRETATION: As per responses collected by customers Model wise preference is given to

Starline of Eicher then Skyline.
Starbus of Tata, Tourister of Mahindra is also now a day preferred by customer in FBV.

IF SEATING RANGE:
INTERPRETATION: As per Institutional response, Educational Institute prefer mostly 32
40seater in ICV segment & Colleges prefers more than 50seater that falls in the segment of HCV
(Heavy commercial Vehicle).

IF PRICE:
INTERPRETATION: As per Institutional response, they are likely to invest from 14lakhs to
17lakhs.

I have made a comparison in price of different brands from 32 40seater as they are likely
preferred.

29
PRICING STRATEGY OF EICHER
EX- RTO Speed
Showroom Charges(Quarterly Governor
VARIENT Price charges) Insurance Charges Discount TOTAL
EICHER SKYLINE
(32+1Seater) 1608000 36000 52000 13000 100000 1609000
STARLINE
(41Seater) 1725725 46000 59000 13000 100000 1743725

PRICING STRATEGY OF SWARAJ MAZDA

EX-
Showroom Tax upto R.T.alt
VARIENT Price Registration Insurance March charges TOTAL
SML
TURBO(32Seater) 1623586 31000 53750 6400 124736 1650000
S7(41Seater) 1696789 33000 64994 8200 112983 1750000

PRICING STRATEGY OF TATA MOTORS

EX-
Showroom Speed governor
TML VARIANT Price Registration Insurance charges TOTAL
CITYRIDE(36seater) 1619360 57384 25000 15000 1716744
CITYRIDE(40seater) 1689884 60905 27000 15000 1792789
STARBUS(40seater) 1704912 27000 61152 15000 1808064

PRICING STRATEGY OF MAHINDRA

Speed
Variant Road- governor
EX- Tax Reg. Free
M&M Showroom Insurance Annual Charges Fitted T/R Permit Total
32seater 1124834 40703 3800 6000 0 1500 5500 1182334
40seater 1347230 51210 5500 6000 0 1500 5500 1416940

PRICING STRATEGY OF ASHOK LEYLAND

Ex-Showroom T/R Registration
Variant
Price Insurance charges Charges Total
Stag 34Seater 1609870 40000 8000 6700 1664570
Ashok
stag 40Seater 1762155 45000 8000 7000 1822155
Leyland
Lynx41Seater 1814825 48000 8000 7050 1877875

INTERPRETATION: For 34seater Ashok Leyland enjoys the monopoly.40 & 41seater of
Ashok Leyland ranges higher than other brand.

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PRESENT VEHICLE DETAILS OF EDUCATIONAL INSTITUTE IN ICV SEGMENT:

BRAND NAME NO. OF VEHICLES

Ashok Leyland 104
EML 89
TML 67
SML 43
M&M 21

MARKET SHARE IN KRISHNAGIRI

M&M
SML 7%
13% Ashok Leyland
32%
TML
21%
EML
27%

*As per Institutional Feedback.

INTERPRETATION: Ashok Leyland is having 32% Market Share in Krishnagiri.

Least Market share is of M&M with only 7%.

31
Preferred features in ICV segment while making any purchase decision:

FEATURES No. Of Respondents IN PERCENTAGE

SAFETY 35 70%
PRICE AFFORDABILITY 42 84%
DRIVER'S COMFORT 10 20%
SPACIOUS AND COMFORT 18 36%
MILEAGE 22 44%
FUEL CAPACITY &EFFIENCY 16 32%
SEATING RANGE 40 80%
DESIGN & LOOKS 8 16%
COST OF MAINTENANCE 24 48%
SPARE PARTS AVAILABILITY 32 64%
AFTER SALES SERVICE 38 76%
BRAND RELIABILITY 12 24%
RESALE VALUE 6 12%

PREFFERED FEATURES BY CUSTOMERS IN ICV

SEGMENT
Safety
Resale Value Price affordability

84%
Brand Reliability 70% Driver's Comfort

After Sales Service Spacious and Comfort

76% 24% 12%20%36%

16% 44%
64% 32%
Spare Parts Availability 48% Mileage

80%
Cost of Maintenance Fuel Capacity & Effiency

Design & Looks Seating Range

*As per Institutional Feedback.

INTERPRETATION: The preferred feature by a customer while making buying decision in

ICV segment is to be price affordable with preferred seating range.

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BUYING PATTERN:

Buying Pattern No. Of Respondent

CHASIS 35

FBV 15

BUYING PATTERN FOR SCHOOL BUS

30%

CHASIS
FBV

70%

INTERPRETATION:
(I) According to preference of Educational Institutes, they like to buy Fully Built Vehicle
(FBV) for their institutions according to government specified norms.
People preferring Chassis model thinks that, they can increase no. of seats in their vehicle by
giving it to any other Pvt. Body builder and can add on the accessories according to their
requirement.
(II) Educational Institute mostly get finance for school bus through their school reserves.
And some may take the help of banking institutions for getting loan for their vehicle.

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 Problem faced by customer of school buses in ICV segment (Ashok Leyland):

FEATURES No. Of Respondents (%) No. Of Respondents

Quality 4% 2
Price 86% 43
Safety & comfort 10% 5
Body-building 36% 18
Fuel capacity and efficiency 22% 11
Cost of maintenance 14% 7
Spares part availability 48% 24
Accessories 40% 20
Local mechanics availability 24% 12
seating range 62% 31
service centre availability 54% 27

PROBLEM FACED BY ACTUAL USERS OF ASHOK LEYLAND

QUALITY

SERVICE CENTRE AVAILABILITY PRICE AFFORDABILITY

86%
54%
SEATING RANGE SAFETY & COMFORT
62%
4%
10%
24% 36%
LOCAL MECHANICS AVAILABILITY BODY-BUILDING
14% 22%
40%

ACCESSORIES 48% FUEL CPACITY AND EFFCIENCY

SPARES PART AVAILABILITY COST OF MAINTENANCE

INTERPRETATION: The Prices of Ashok Leyland school buses are very high whereas
Quality wise Ashok Leyland is the reliable & leading brand.

34
The below graph shows ranking from 1 to 5 for various preferred features given by customers
in connection with other brands & explains the vehicles leading and lagging in different
parameters with respect to other brands.

RANKING GIVEN BY CUSTORMES TO PREFERRED FEATURES IN

COMPARISION TO OTHER BRAND

SERVICE CENTER
AVAILABILITY
5
SEATING RANGE QUALITY
4

3
LOCAL MECHINENIS
2 SAFETY AND COMFORT
AVAILABILITY

0
ACCESSORIES PRICE

SPARES PART AVAILABILITY BODY-BUILDING

COST OF MAINTENANCE FUEL CAPACITY & EFFIENCY

ASHOK LEYLAND EML TML SML M&M

35
Description about the concept & model introduced in the study:

Segmentation-Targeting-Positioning (STP) Analysis:

According to my study for this research, the concept I have used is Segmenting, Targeting and
Positioning. With the help of STP, I will be able to know customers preference & buying
behavior.

SEGMENTATION

Segmentation involves dividing a broad target into subsets according to customers preference,
features and priorities and then designing and implementing strategies to target them.

Targeting the customers of ICV segment. (28 50Seater)

Brand sensitive, Performance sensitive, price sensitive, balanced perspective.

TARGETING

Targeting is done with defining the resources required in the market, knowing companies
resources then comparing with potential of competitors brand, and then deciding the actual
target market.

Educational Institute ( schools & colleges )

POSITIONING

Positioning is the marketing activity to identify the markets problem or opportunity and then
launching the feature with specific in the target market.

Launching Lynx & Stag with more value added services at a nominal price & with
more aesthetic looks.

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SWOT ANALYSIS:

STRENGTH WEAKNESS
1.Brand Name 1.Less Seating range
2. Quality Of Product 2.High Price
3. Customer's Loyality 3.Body-builders
4. Safety & comfort. 4. Less no. of service center
availability.

OPPORTUNITY
THREATS
1.New techology.
1.Change in government norms.
2.Increasing no. of Educational
2. Competitors.
Institute.

37
 Interpretations and conclusions

The major player in ICV segment in Tamil Nadu is Eicher with 357no. of vehicles sold in
FY2014-15

The major player in ICV segment for school bus in krishnagiri district is Eicher with
14no. of vehicles sold in FY2014-15

Highest no. of vehicles (17nos.) sold by Eicher in Krishnagiri in FY2014 15.

Ashok Leyland has sold 14nos. of school bus in FY2014-15 & has increased its sales
growth by 16.66% in Krishnagiri from 2014 to 15.

Customer purchase ICV based on parameters like:

Price affordability.
Seating range.
After sales service.
Safety.
Spare parts availability.

Most of the people knows Ashok Leylands model name by its year of purchase, not by
Lynx & Stag model.

Preferred seating range in Krishnagiri district is 32 40seater for schools, 50seaters for
colleges.

Ashok Leyland enjoys the benefit of Brand name in Krishnagiri & is having the highest
market share of 32% followed by Eicher with 27%.

FBV according to the government specified norms are preferred mostly preferred by
Educational Institute.

After sales services, Spare parts availability is main requirement of Educational Institute
for their convenience.

Major problem of actual users of Ashok Leyland is the high prices and followed by less
seat range and less service center availability for school buses.

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 The customer who are brand loyal and takes Ashok Leyland for its Quality are switching
to other brands because of lesser seating range needed by them for transportation service
which is not provided by Ashok Leyland.

Heavy aggregates are being used by Ashok Leyland for school buses which gives lesser
mileage as compared to other brands though its not the key requirement of Institutions
as they dont use for commercial purpose and just use is for pick and drop service for
children.

Those customers coming for walk-ins in the dealership, reports the vehicle lacks
aesthetics.

39
 Recommendations

Adapting viable and necessary modification as per customers feedback.

Promote the product through Value engineering workshops.

In order to improve the marketing Strategy of Ashok Leyland the company has to start
working from December as according to the analysis the highest no. of vehicles sold is in
the month of March to July.

To have only one body builder for school buses as customers who wants a specific
standard in their vehicle are finding it difficult to get as they report difference in color,
parts, codes, etc. Poor body-building will give a bad image of companys Quality
product.

Offers to be provided to customers as most of them are price sensitive.

Use of website to make LYNX & STAG more attractive and remembered model.

40
 Limitations

Difficulties in getting relevant data from company as the executives were very busy in
their schedule.

Convincing and getting appointment from the institutions to give relevant feedback.

Difficult to find the respective person in school to give proper feedback as April May is
the time of report card distribution or the schools were getting closed due to summer
holidays.

Dealers of other brands not willing to disclose useful information.

Lack of interest of the concerned persons to give response. Getting neutral responses for
all questions made my work difficult to analyze the actual situation.

41
 Scope for future improvements

India has more than 1.4 million schools and more than 35,000 higher education institutes.
India has one of the largest higher education systems in the world and there is still a lot of
potential for further development in the education system. In this potential to grow
educational institutes are having a requirement for school buses, If Ashok Leyland take it
as an opportunity and make viable and necessary modifications according to customers
requirement company will be able to increase its market share.

Increase the range of seating capacity in order to give the customers required seating
preference, so the customer wont switch to other brands & will increase market reach.

Number of School bus in ICV segment is has a potential to increase in future.

Providing the institute FBV according to government specification norms with additional
features like CCTV and GPS tracking device with AC, as these are the new requirement
of most of the International or Elite schools.

Increase promotional activity and event like school fest by which company will try to
connect to more school across country.

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 Bibliography

http://www.team-bhp.com/forum/commercial-vehicles-india/135810-tata-motors-loses-mhcv-market-
share-ashok-leyland-gains.html

http://www.ashokleyland.com/

http://www.edb.gov.hk/en/student-parents/safety/sch-bus-services/index.html

www.teambhp.com

www.articles.economictimes.in

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