Anurag Doshi Roll No – 1914021 EPGP-IIMB

The Indian Moped Market- Market Analysis

Q1. How do you see current market w.r.t. Moped Segment?

 Overall two-wheeler industry has grown over the last 5 years but in last 2 years the growth rate
have been declining due to stagnation of demand and economic factors.
 There have been major innovations in the industry specifically in Motor cycle and scooter but
mopeds were targeted at entry level segment so there were no significant innovations.
 As it can be seen the graphs, Moped segment growth has become 0% during 1986-87. TVS is the
number 2 player in the moped segment in terms volume. Also, Moped is facing significant
competition from the Motorcycle industry due to intensive R&D involved.
 Preference of scooters w.r.t. mopeds has been increasing over last 2 years.

Q2. As TVS Product Manager what product management initiatives would you see for this
category?
I can clearly see as a TVS product Manager that TVS has very strong base in the South India due to
regional connect however I will develop my initiatives to increase my market share in the west zone
of India (Targeting Luna segment) as well as sustain and improve the market share in the south. I
would like to see below initiatives to be taken to drive this strategy:
 Protect TVS from the attack of Motorcycle segment by positioning it more in the rural market
 Revise the pricing strategy across all TVS moped brands to compete with Luna and Other players
as I am not offering any great benefits to the consumer apart from one extra seat.
 Incentives distributors in the west zone to promote and push TVS moped products and come out
of “pull situation”
 Revive the brand image in the west zone by using advertisement with more local content
 Target Urban and Rural segment with different products and not all brand of TVS.
 Push for R&D initiatives to have more number PODs w.r.t. competitors in the market.
 Utilize Suzuki’s expertise for technological Innovation for the Moped industry
 Utilize the core strength of the TVS- “Build tough and last long” and target retail industry for
transporting the goods in local areas.

Q3. You decide to launch a product to take on Luna TFR head on in the western India market.
What would be your concept statement of the product?
 Luna is considered for women and students in Tier 2 cities for local transport within cities as it
was single seater, easy to handle and reliable.
 To take on Luna, I would suggest that TVS should come with the product with similar attributes
and along with those it should have better fuel efficiency and reduced total ownership cost.
 One of the reasons behind this is, Women are frugal, and students won’t be having cash flow to
spend money on the vehicle. Along with that, it would make sense to keep the 2 seater option as
a POD as currently there is not that much cost difference w.r.t addition of one seat.
 So, concept statement of the Product would be,
“Pocket Friendly, Multipurpose, Stylish Champ for the Champions!”