A project report on

“TATA MOTORS”

Submitted in the partial fulfillment for the award of degree

in
BACHELOR OF BUSSINESS ADMINISTRATION
from
University College Of Business Studies (UCBS)

2010-2011

Submitted by Guided By
SAURAV GUPTA

1
MR. O.P. VERMA BBA 6TH SEM
FACULTY (UCBS)

Dclaration
I Saurav gupta student of sixth semester at
“shri shankaracharya mahavidyalaya” her by
declare that these research report under the
title “customer satisfaction & buying
behavior” is the record of my original work
under the guidance of Mr. Sandeep Jashwant
(H.O.D ) B.B.A . These report has never been
submitted any where for award of any degree or
diploma.

Place: ABHISHEK KU

2
 Certificate
This is to certify that Mr. Saurav Gupta has
completed the project entitled “A PROJECT
REPORT ON THE COMPANY PROFILE OF TATA
MOTORS” under my supervision. To the best of
my knowledge the report consists of result of
an empirical study conducted by my student. In
my opinion, the work is of the requisite
standard expected of a BBA student. Therefore,
I recommend the same to be sent for
evaluation.

Dated: Mr.
O.P. Verma
Fac
ulty
UCB
S, H.P.U, SIMLA
3
 Acknowledgement
Perhaps the most awaited moment of any
endeavor is its successful completion of the
same. The following project report cases study
which demands rigorous work for the whole
academic year. I would like to express my
sincere gratitude to all those who made it
possible.

Firstly I would like to thank Mr. Ramesh

Sharma, H.R. manager, TATA motors
Chandigarh, who helped me molding the
project and giving a final touch to it. I take this
opportunity to express my sincere gratitude to
my mentor Mr. O.P. Verma who has been a
valuable guide in the completion of this
project.

I shall be failing in my duty if I don’t

express my deep sense of gratitude to our
college librarian, all my friends and the
relatives who have shared their valuable time

4
and helped me directly or indirectly in the
preparation of their project .

At the end last but not the least, I would like

to thank the other staff and non staff members
of this college.

Sau
rav gupta
BBA
6 semester
th

1412

Pr
eface

“Customer
The topic chosen by me for my project is
satisfaction & Buying behavior” in reference to
TATA motors. At present Tata is market leader in the Indian
market in four wheeler segment.

Today there are various companies coming in the

automobile sector of the INDIAN market which has made it
one of the most competition prone sectors of today. I have

5
chosen a Tata motors as a topic essence of my project
.Today consumers, due to the various manufacturers have
started to get a wide choice of vehicles which has made
both the competition and consumer selection process more
intense.

A normal customer is quit puzzled and faces, for an uneven

some time, huge problems in deciding which vehicle to buy. I
realized the problem and decide to take these up as the
challenge and provide answer to as the requirement of The
Tata motors.

Index
Page
no:

6
 Introduction
Chapter
• Historical back ground 8-14
-1
• Current scenario
Company profile 15-20
Chapter- • Products of company
2 Marketing strategy
21-24
Chapter-
• Current facts
3 Outlook of industry
• Global operations 25-27
Chapter- Consumer buying behavior
4 • Consumer buying decision 28-32
process
Chapter- • Characteristics of buying
5 behavior 33-35
Problem definition
• Scope of study 36-50
Chapter-
• Limitation of study
6
• Object of study
Customer satisfaction
51-52
• Questionnaire
• Research methodology
Chapter- 53-59
Findings and suggestion
7
SWOT Analysis of Tata motor
Future of automobile in
Chapter- economy
8 June 2009 domestic sales
report
Inflation effect on car market
Chapter-
9
Chapter-
10

7
Introduction

India is an emerging country with huge potential. The

domestic economy is now growing at around 9-10% per
annum and India’s importance in global terms is being
reinforced by rapidly rising exports and domestic
consumption. At a time when numbers of a slowdown and
overheating in the Indian economy have started gaining
momentum, the Indian rupee sprang a surprise by pushing
the GDP figure past the trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the center of India’s new
global dynamic. The domestic market expanding rapidly as
incomes rise and consumer credit becomes more widely
available. Manufacturer’s product lines are being continually
expanded, as is the local automotive manufacturing base.
Expectation are high that India can develop as a global hub
for vehicle manufacturers and as an outsourcing center that
offers the global automotive industry solution high up the
automotive value chain.

 India eyes 25 million automotive jobs.

 India's GDP is set to double over the next
decade
 In percentage terms, the automotive
industry's contribution should also double.
 In dollar terms, the sector's contribution is
set to quadruple to some $145bn
With the world’s second largest and fastest-growing
population, there is no denying India’s potential in
both economic and population terms and the effect it
8
will have on the auto industry in the years to come.
The country is already off to a good start, with a well-
developed components industry and a production
level of 1 million four-wheeled vehicles a year, plus a
further 5 million two- and three-wheelers.
Histori
cal back ground

In India there are 100 people per vehicle, while this figure is 82
in China. It is expected that Indian automobile industry will
achieve mass motorization status by 2014.
Since the first car rolled out on the streets of Mumbai (then
Bombay) in 1898, the Automobile Industry of India has come
a long way. During its early stages the auto industry was
overlooked by the then Government and the policies were
also not favorable. The liberalization policy and various tax
reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile Industry. Indian
auto industry, which is currently growing at the pace of
around 18 % per annum, has become a hot destination for
global auto players like Volvo, General Motors and Ford. A
well developed transportation system plays a key role in the
development of an economy, and India is no exception to it.
With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an
important place on the 'canvas' of Indian economy.
Today Indian automotive industry is fully capable of
producing various kinds of vehicles and can be divided into
03 broad categories: Cars, two-wheelers and heavy vehicles.

 The first automobile in India rolled in 1897 in Bombay.

 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in Indian auto
industry.
 Within two-wheelers, motorcycles contribute 80% of the segment
size

9
 Unlike the USA, the Indian passenger vehicle market is dominated
by cars (79%).
 Tata Motors dominates over 60% of the Indian commercial vehicle
market.
 2/3rd of auto component production is consumed directly by
OEMs.
 India is the largest three-wheeler market in the world.
 India is the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the
world.
 The number one global motorcycle manufacturer is in India.
 India is the fourth largest car market in Asia - recently crossed the
1 million mark.

FOUNDATION - The seeds of what would

mature and become today's Tata group were

10
 laid long years before India became
independent.

CONSOLIDATION - The Tata group ventured

into new areas and built on the foundations, in
spite of the restraints imposed by a controlled
economy.

LIBRILISATION -The Indian economy unleashed

a period of remarkable growth for the
Tata group, in India and worldwide.

FIVE CORE VALUES OF TATA

The Tata Group has always sought to be a

value-driven organization. These values
continue to direct the Group’s growth and
businesses. The five core Tata values
underpinning the way we do business are:

 Integrity: We must conduct our business fairly,

with honesty and transparency. Everything we
do must stand the test of public scrutiny.

 Understanding: We must be caring, show

respect, compassion and humanity for our
colleagues and customers around the world, and

11
 always work for the benefit of the communities
we serve.

 Excellence: We must constantly strive to

achieve the highest possible standards in our
day-today work and in the quality of the goods
and services we provide.

 Unity: We must work cohesively with our

colleagues across the Group and with our
customers and partners around the world,
building strong relationships based on tolerance,
understanding and mutual cooperation.

 Responsibility: We must continue to be

responsible, sensitive to the countries,
communities and environments in which we
work, always ensuring that what comes from the
people goes back to the people many times
over.

12
The growth of the Indian middle class along with the
growth of the economy over the past few years has
attracted global auto majors to the Indian market.
Moreover, India provides trained manpower at
competitive costs making India a favored global

13
manufacturing hub. The attractiveness of the Indian
markets on one hand and the stagnation of the auto
sector in markets such as Europe, US and Japan on
the other have resulted in shifting of new capacities
and flow of capital to the Indian automobile industry.
According to the International Yearbook of Industrial
Statistics 2008 released by United Nations Industrial
Development Organization (UNIDO), India ranks 12th
in the list of the world’s top 15 automakers.

GENERAL OVERVIEW

• INDIAS LARGEST BUSINESS

GROUP
• DIVERSE BUSINESS IN 7 SECTOR
• INTERNATIONAL INCOME 61%OF
GROUP REVENUE
• OPERATION IN OVER 80
COUNTRIES
• PRODUCT AND SERVICES EXPORED
IN 85 COMPANIES
• LARGEST EMPLOYER IN PRI VATE
SECTOR OVER 300,000
• GROUP REVENUE FY09 : 251,543
CR/ $62.5 bn

14
 Tata motors

Tata Motors is India’s largest automobile company. Its revenue in

2008-2009 was Rs 24,000 crore (U.S.$ 6.4 billion).It is the leader
in commercial vehicles in each segment and the second largest in
the passenger vehicles market ,with winning products in
compact, mid-size car and utility vehicle segment. The company
is the world’s fifth largest medium and heavy commercial vehicle
manufacturer and the world’s second-largest medium and heavy
bus manufacturer. The company’s 29,600 employees are guided
by the vision to be “best in the manner in which we operate, best
in the products we deliver and best in our value system and
ethics” Established in 1945, Tata Motors’ presence extends
across the length and breadth of India. Over 3.5 million Tata
vehicles have driven on Indian roads since the first one rolled out
on 1954.The company’s manufacturing base is spread across
multiple plants, supported by a nationwide dealership, sales and
services and spare parts network comprising of about 1,200
15
touch points. The company also has a strong auto finance
operation, Tata Motors Finance for supporting customers in
purchasing Tata Motors vehicles

Company profile

The largest passenger automobile and commercial vehicle

manufacturing company of India Tata Motors Limited, was
formerly called TELCO (TATA Engineering and Locomotive
Company), has its headquarters in Bombay, now Mumbai,
India. Established in 1945, listed on the New York Stock
Exchange in 2004 has created Rs. 320 billion wealth and was
one of the top
10 wealth creators in India, with manufacturing facilities in
the towns of Jamshedpur, Lucknow, and Pune. This company
was founded by Jamshetji Tata and is run by Ratan Tata
under the flagship company known as Tata and sons group.
16
He commands 22000 employees working in three plants as
well as other regional and zonal offices across the length and
breadth of India.

Tata motor’s passenger cars still need to reach

acceptable international requirements. The company
commands an imposing 65% share of the domestic
commercial vehicle market and is trying to
modernize this segment. The financial business of
Tata motors was separated into a subsidiary
company in sep. 2006, where it recorded a strong
financial performance during the last 5 year period.
From year 2005-2009, the profits of the company
went up at a CAGR of 36.4%, to attain Rs. 331, 525
million in 2008from Rs. 95, 731 Million in 2003. By
floating two rights issues at the end of Sep 2009 Tata
Motors Ltd expected to raise Rs 4, 150 crores. They
are offering one ordinary share valued at Rs. 340
every six shares expecting to net Rs. 2.90 Crores, the
so called “A” share would have different voting and
dividend rights, for every such 6 shares held at a
face value of 305 would raise Rs. 1.960 Crores, these
proceed would be utilized for an early repayment of
the short term funding of 2.3 Billion $ (Rs. 10,189
Crores) Borrowed for Acquisition of jaguar and Land
Rover from their principle “The Ford Motor
Company’s”.

17
As TATA MOTORS is regarded as one of the best fuel
efficient cars. Hence I conducted a study on the
consumer perception about small cars. Firstly, I took
three brands of small cars; Zen estilo,
Indica and Santro for a comparative study of small
car segment.
Later I went through the process of filling the
questionnaires, to know exactly what the customer’s
of small cars perceived about their cars. Tata motors
were established on September 1, 1945, originally for
the manufacture of Steam Locomotives at
Jamshedpur.
All the cars taken for the sample showed that the
consumers perceived them as almost same in all the
attributes like safety, comfort and luxury. But, at the
end the research was limited due to small sample
size, small sample area and time constraints.

18
TELCO (TATA Engineering and Locomotive
Company)
• Multinational Corporation.
• Headquarters in Mumbai.
• India's largest passenger automobile and
commercial vehicle manufacturing
company.
• World's 19th largest automaker.
• Sales: 19,654.41cr.
• Stock price: Rs. 347

In 1969 Tata motors had become an independent

producer of Medium Commercial Vehicles. It had also

19
developed the capability of designing, testing and
manufacturing such vehicles.

Leading commercial vehicle manufacturer and has

significant presence in the multi-utility and
passenger car segments.

With the Launch of Tata Indica, a Euro 2 compliant

vehicle is the country’s first indigenously designed,
developed and manufactured passenger car.

With the launch of Tata nano, Tata has penetrated

the market to its extreme by making a car available
for Rs. 132000 only. This is the cheapest car in India
till date and with the announcement of its diesel
variant it has made potential buyers to eagerly wait
for it.

Products of TATA Motors

>>>>>

20
MARKETING STRATEGIES

TATA unveiled its long awaited 1 Lakh rupee car

(actually a little over 1 lakh after tax) for the masses
and they call it “The People’s Car”. It’s a sweet
looking small car, just enough to take four people
around the city. 1 Lakh rupees roughly translate to
2500 rupees monthly installment and because of this

21
reason TATA is expect to sell record breaking
numbers and leave Indian roads blocked.

TATA Nano will hit the roads and as it is a definite

threat to Maruti 800. TATA stated that the initial
production of this car will be of 250,000 a year. After
about four years of hard efforts TATA Nano (1 lakh
rupee car) was on road now.

The introduction of the Nano received media attention due

to its targeted low price. The car is expected to boost the
Indian economy, create entrepreneurial-opportunities across
India, as well as expand the Indian car market by 65%. The
car was envisioned by Ratan Tata, Chairman of the Tata
Group and Tata Motors, who has described it as an eco-
friendly "people's car". Nano has been greatly appreciated
by many sources and the media for its low-cost and eco-
friendly initiatives which include using compressed-air as
fuel and an electric-version (E-Nano). Tata Group is expected
to mass manufacture the Nano, particularly the electric-

22
version, and, besides selling them in India, to also export
them worldwide.
Critics of the car have questioned its safety in India (where
reportedly 90,000 people are killed in road-accidents every
year), and have also criticized the pollution that it would
cause (including criticism by Nobel Peace Prize winner
Rajendra Pachauri). However, Tata Motors has promised that
it would definitely release Nano's eco-friendly models
alongside the gasoline model.
The Nano was originally to have been manufactured at a
new factory in Singur, West Bengal, but increasingly violent
protests forced Tata to pull out October 2008. Currently,
Tata Motors is reportedly manufacturing Nano at its existing
Pantnagar (Uttarakhand) plant and a mother plant has been
proposed for Sanand Gujarat. The company will bank on
existing dealer network for Nano initially. The new Nano
Plant could have a capacity of 500,000 units, compared to
300,000 for Singur. Gujarat has also agreed to match all the
incentives offered by West Bengal government.

Currents facts

Today Advertising is one of the most common ways to make

car buyer or car enthusiast aware of the new car with special
promotion price. Another more important way of advertising
23
is to create an image or brand image. Take BMW Z3 for
example, it was introduced in 1996 and shortly the car has
been used in the famous James Bond movie. Over the years
Tata Motors have been successful in creating their brand
image.

The packaging, innovations, and quality control. Tata Motors

provide many innovative features to attract car lover. One of
these innovations is the Tata Safari 4X4 Dicor that has
“Reverse Guide System”. A weather-proof camera is fixed to
the rear car to help the driver while reversing the car.

There are various factors to determine a price of a car.

These factors are such as market condition (it can’t be too
low or too high with the prices of same vehicle from
competitors, it has to be at par), cost incurred to build a car,
profit by company, dealer profit. Giving discount every
month and special promotion for certain type of vehicle also
one of the strong strategy use by Tata Motors. Discount can
be made from Company’s profit or from dealer’s profit at
certain range.

Place of dealership does play an important role. The

channel of distribution, physical location, and
dealership method of distribution and sales is
generally adopted. The distribution of vehicle must
be in a very systematic way, from the plant to
dealership and to end user. This is not only in India
itself but also to the world-wide dealership.

OUTLOOK OF INDUSTRY

24
The industry witnessed a change in demand dynamics in last
few years. The demand for LCVs in the <=3.5 tones segment
is rising at the cost of demand in 5 to 7.5 tones category,
while demand in 7.5 to 12 tones segment and 16.2 to 25
tones segment is booming at the cost of demand in 12 to
16.2 tones segment. Demand for trailers of >35.2 tones is
witnessing a surge while demand for semi-trailers in 26.4 to
35.2 tones segment is suffering. This structural shift in
demand dynamics is due to the evolution of Hub & Spoke
model of distribution, which is now adopted by
transportation players because of improved road
infrastructure and also the ban on trucks in many cities by
the authorities to tackle the traffic congestion issues.
According to the Hub & Spoke model, HCVs plying over the
highways to transport goods to different states and districts,
while MCVs are used in distributing goods to different cities
and the last leg of distribution in intra city is done by using
<=3.5 tonner vehicles

25
GLOBAL OPERATIONS

Tata Motors has been aggressively acquiring foreign

brands to increase its global presence. Tata Motors
has operations in the UK, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was
acquired in 2008. Tata Motors has also acquired from
Ford the rights to three other brand names: Daimler,
Lanchester and Rover. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South
Korea’s second largest truck maker. The rechristened
Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market,
while also exporting these products to several
international markets.

26
 Today two-thirds of heavy commercial vehicle
exports out of South Korea are from Tata Daewoo. In
2005, Tata Motors acquired a 21% stake in Hispano
Carrocera, a reputed Spanish bus and coach
manufacturer, giving it controlling rights of the
company. Hispano’s presence is being expanded in
other markets. On Tata's journey to make an
international foot print, it continued its expansion
through the introduction of new products into the
market range of buses (Starbus & Globus) as well as
trucks (Novus). These models were jointly developed
with its subsidiaries Tata Daewoo and Hispano
Carrocera. In May, 2009 Tata unveiled the Tata World
Truck range jointly developed with Tata Daewoo.
They will debut in South Korea, South Africa, the
27
SAARC countries and the Middle-East by the end of
2009. In 2006, it formed a joint venture with the
Brazil-based Marco polo, a global leader in body-
building for buses and coaches to manufacture fully-
built buses and coaches for India and select
international markets. Tata Motors has expanded its
production and assembly operations to several other
countries including South Korea, Thailand, South
Africa and Argentina and is planning to set up plants
in Turkey, Indonesia and Eastern Europe. Tata also
franchisee / joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal.
Tata has dealerships in 26 countries across 4
continents. Though Tata is present in many counties
it has only managed to create a large consumer base
in the Indian Subcontinent namely India, Bangladesh,
Bhutan, Sri Lanka and Nepal and has a growing
consumer base in Italy, Spain and South Africa.

The Government of India announced an

automobile policy in December 1997. The
28
policy required majority-owned subsidiaries of
foreign car firms to invest at least US$50
million in equity if they wished to set up
manufacturing projects in India. It also forced
them to take on export obligations to fund their
auto part imports and required them to submit
to a schedule for increasing the share of locally
made parts in their cars. Mere car assembling
operations were not welcomed. An Indian
cabinet panel will soon consider a new
automobile policy that aims to set fresh
investment guidelines for foreign firms wishing
to manufacture vehicles in the country.
Investments in making auto parts by a foreign
vehicle maker will also be considered a part of
the minimum foreign investment made by it in
an auto-making subsidiary in India. The move
is aimed at helping India emerge as a hub for
global manufacturing and sourcing for auto
parts. The policy sets an export target of $1
billion by 2005 and US$2.7 billion by 2010.
The policies adopted by Government will
increase competition in domestic market,
motivate many foreign commercial vehicle
manufactures to set up shops in India, whom
will make India as a production hub and export
to nearest market. Thus Tata Motors CV will
have to face tough competition in near future,
which might affect its growth negatively.

29
Consumer Buying Decision Process

There are following five stages in consumer buying

decision Process.

1. Problem identification:-
The buying process starts when the buyer
recognizes a problem or need. The need can be
triggered by internal or external stimuli.
Marketers need to identify the circumstances
that trigger a Particular need. By gathering
information from a number of consumers,
Marketers can identify the most frequent
stimuli that spark an interest in a product
category. They can then develop marketing
strategies that trigger consumer interest.

2. Information Search:-
30
The consumer tries to collect information
regarding various products/service. Through
gathering information, the consumer learns
about completing brands and their features.
Information may be collected form magazines,
catalogues, retailers, friends, family members,
business association, commercial, chamber of
commerce, telephone directory, trade fair etc.
Marketers should find out the source of
information and their relative degree
importance to the consumers.

3. Evaluation of
alternative:-
There is no single process used by all consumers by
one consumer in all buying situations. There is
several First, the consumer processes, some basic
concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits
from the product solutions. The marketer must know
which criteria the consumer will use in the purchase
decision.

4. Choice of purchasing
decision:-
From among the purchase of alternatives the
consumer makes the solution. It may be to buy or not
31
to buy if the decision is to buy. The other additional
decisions are:
Which types of bike he must buy from whom to buy a
bike? How the payment to be made? And so on.
The marketer up to this stage has tried every means
to influence the purchase behavior, but the choice is
properly consumers. In the evaluation stage the
consumer forms preferences among the brands in
the choice set. The consumer may also form an
intention to but the most preferred brand.

5. Post Purchase Behavior:-

After purchase the product, the consumer will
experience the same level of product. The Marketer’s
job not end when the product is buying must monitor
post-purchase satisfaction, post-purchase action,
post-purchase use and disposal.

Post Purchase Satisfaction:-

The buyer, S satisfaction is a function of
closeness between the buyer, S
expectation and the products Perceiver
performance. The larger the gap between
expectation and performance, the greater
the consumer dissatisfaction.

32
 Post purchase Action:-
The Consumer, S satisfaction or
dissatisfaction with the product influence
subsequent behavior. If the consumer
satisfied, he or she will exhibit a higher
probability of purchasing the product
again. Dissatisfaction consumer may
abandon and return the product.

Post-Purchase Use or Disposal:-

The marketer should also monitor new
buyers use and dispose of the product. If
the consumer store the product in a close,
the product is probably not very
satisfying. If the consumer throws the
product away, the marketer needs to
know how they dispose of it; especially it
can be hurt the environment.

Characteristic of Buyer
Behaviors

The chief characteristics of the buyer’s behaviors are

as
Follow:-
33
(1) It consists of mental and physical activities
which consumers undertake to get goods
and services and obtain satisfaction from
them.

(2) It includes both observable activities such

as walking through the market to
examine merchandise and making a
purchase and mental activities-such as
forming attitudes, perceiving advertising
material, and learning to prefer particular
brands.

(3) Consumer behaviors are very complex and

dynamic to constantly changing. And
therefore, management need to adjust
with the change otherwise market may be
lot.

(4) The individuals specific behaviors in the

market place is affected by internal factor,
such as need , motives, perception, and
attitudes, as well as by external of
environment influences such as the family
social groups, culture, economics and
business influences.

34
PROBLEM
DEFINATION

• PROBLEM
DEFINATION

• SCOPE OF STUDY

• OBJECTIVE OF
STUDY

• LIMITATIONS OF
STUDY
35
PROBLEM DEFINATION

Consumer says something and does something.

There are many companies manufacturing
motorcycles into the market, at the same time as
there are many companies manufacturing
motorcycles, idea about thinking of customer on
whether, what, how, and for whom to purchase the
CAR.
Therefore, research is required to measure present
consumer buying behavior at the purchase of TATA
cars. So the researcher problem is to identify what
are the criteria that prospective customer takes into
consideration before buying the cars.

SCOPE OF STUDY

(1)The main scope of the study is depend to

consumer response

(2) It also analysis the benefits accruing to the

company as a result of those service.

36
(3) This study has been made to find the level
of satisfaction the Customer has regarding the
service provider by car place.

Limitations of study

(1) When the buyers are busy we can’t

get accurate data from them.

(2) According to the time limit of our

project we can cover only the some
area.

(3) During survey some respondents

may not give answer in proper
manner.

OBJECTIVES OF STUDY

37
(1) To know market position of Tata
automobile in the market.

(2) To know consumer behavior for

purchase of four wheeler.

38
Questionnaire
• Questionnaire is a source of Primary Data.
• It is a simple way to collect data from
general public
• Multiple choice questions were given to the
respondents and they were asked to fill
their opinion.
• The data was then analyzed and inferences
were drawn on that basis.

Sample of a questionnaire

1. WHAT IS YOUR SALARY?

1 LAC 1 LAKH -3 LAKH 3LAKH-
5LAKH 5LAKH

2. WHICH VEHICLE DO YOU OWN?

_____________________________________________________________________
_________________

3. DID YOU RIDE SOME OTHER VEHICLE BEFORE THIS?

YES NO

39
4. WHAT IS YOUR EXPERIENCE FROM THE PREVOIUS VEHICLE?
SATISFIED NOT SATISFIED

5. WHICH IS THE MOST ESSENTIAL THING YOU PREFER WHILE

BYING VEHICLE?
PRICE MILEAGE POWER
STEERING OTHERS

6. DOES TV AD APPEAL YOU?

YES NO

7. DO YOU LIKE TV PROGRAMMES ON CAR?

YES NO

8. DOES BRAND VALUE AFFECT YOUR DECISION ON BUYING

VEHICLE?
YES NO

Research
methodology
Research Methodology: The data for the
project was collected from malls, customers at
showrooms, markets and from public also.

Sample Size: Sample size of 60 was taken

based on “convenient Simple Random
Sampling”.

Research Tools: The data was collected

through “Survey Questionnaire Method”.
40
Data Collection: Data was collected
through the following:-

 Primary sources: Questionnaire from

General public
 Secondary Sources: Magazines,
newspapers, Internet.

ANALYSIS

 Sample size – 40

 Respondents:

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  Owners of Santro – 9

 Owners of Zen estilo – 8

 Owners of Indica – 18

 Owners of other cars

–5

Q1) what do you own?

A) car B) Two Wheeler C) Nothing

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From that it was found that:-

 20 people owned a car

 15 owned two wheelers and
 5 don’t nothing

Q2) Which car do you own?

a) zen estilo b) santro c) indica d) others

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From that it was found that:-

 8 people owns zen estilo

 18people owns indica
 9 people owns santro
 5 people owns others

Q3) Are you satisfied with it?

A) Yes b) No

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From that it was found that:-

 25 were satisfied and

 15 were not.

(4) Car customers

45
Q5) How much do you spend on
maintenance on a monthly basis?

a) <2000 b) 2000-4000 c) >4000

46
From that it was found that:-

 25 %spends below 2000

 10% spends between 2000-4000
 5 %spends above 4000

(6) Sample of 30 customers, according

to their income.

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Q7)Name he car that comes first in your
mind when you think of small segment
car in India?

48
From that it was found that:-

• 9said zen estilo

• 8 said santro
• 17said Indica
6 said others

Q8)Out of these which you will see first

when you will buy a car?

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From that it was found that:-

• 12 people consider cost & perf. Before purchasing

a car.
• 9 people consider perf.& style before purchasing a
car.
• 8 people consider style before purchasing a car.
11 people consider cost before purchasing a car.

(9)Are you planning to buy a car within

next session?

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From that it was found that:-

• 29 people want to purchase within 1 year

• 11 people want to purchase in 1 month

(10)Factors affecting buying of customers

Power 7
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steering
Mileage 15
Price 10
Others 8

FINDINGS & SUGESSTIONS

FINDINGS

 TATA MOTORS is number three in passenger

car market after maruti-suzuki & Hyundai.
52
 Majority of the customers see TATA MOTORS
with savings.

 Most of the customers spend large sum of

money.

 Out of the samples, people are highly

convinced that TATA MOTORS will yield them
better results.

 As the sales of Maruti grows as well as

Hyundai’s santro is still doing well in mid
size and small size segment so the INDICA
may be a good options for the company in
this term for sustaining sales in long run as
well as in the current situations.

 Product will have a gradual progress.

Because most industries would wait for the
response about the product from other
Company.

 Customers were educated by me, about fuel

efficient cars by TATA MOTORS.

SUGGESTIONS

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Based on the findings from the analysis the
following suggestions could be made:

 Demo of the product should be made

available to Customers, since most of the
purchase decisions are based on it.

 Technical details should be made available

to the customers in the most accurate
numerical form.

 The Indica has remained a bestseller

throughout in the industry figuring in the
top 3 selling list of cars for most of the
years.

 The distribution channel should be more

efficient to cater the demand during peak
seasons like during dassraa, diwali etc .

The city is mostly dominated by the working

class like people employed in high court, AG
office( accountant general office) and
government school employees who this year
are getting more pay due to the
recommendations made by the sixth pay
commission so , the sales for mid size car can
be enhanced in this scenario.

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SWOT Analysis - Tata Motors Limited

SWOT – Strengths, Weaknesses, Opportunities,

Threat

 The internationalization strategy so far has

been to keep local managers in new
acquisitions, and to only transplant a couple
of senior managers from India into the new
market. The benefit is that Tata has been
able to exchange expertise. For example
after the Daewoo acquisition the Indian
company leaned work discipline and how to
get the final product 'right first time.'

 The company has a strategy in place for the

next stage of its expansion. Not only is it
focusing upon new products and acquisitions,
but it also has a program me of intensive
management development in place in order
to establish its leaders for tomorrow

 The company has had a successful alliance

with Italian mass producer Fiat since
2007.This has enhanced the product portfolio
for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat
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 Palio Style was launched by Tata in 2008,
and the companies have an agreement to
build a pick-up targeted at Central and South
America.

The company's passenger car products are based

upon 3rd and 4th generation platforms, which
put Tata Motors Limited at a disadvantage with
competing car manufacturers.

 Despite buying the Jaguar and Land Rover

brands (see opportunities below); Tat has
not got a foothold in the luxury car
segment in its domestic, Indian market. Is
the brand associated with commercial
vehicles and low-cost passenger cars to the
extent that it has isolated itself from
lucrative segments in a more aspiring
India?

 One weakness which is often not

recognised is that in English the word 'tat'
means rubbish. Would the brand sensitive
British consumer ever buy into such a

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 brand? Maybe not, but they would buy into
Fiat, Jaguar and Land Rover.

 The CV segment is becoming highly

competitive by new player like Volvo, and
rival M&M are coming with new products to
cater the TATA in the market as the rural
area has given thumps up to M&M during
this year.

 The new global track platform is about to be

launched from its Korean (previously Daewoo)
plant. Again, at a time when the World is looking
for environmentally friendly transport alternatives,
is now the right time to move into this segment?
The answer to this question (and the one above) is
that new and emerging industrial nations such as
India, South Korea and China will have a thirst for
low-cost passenger and commercial vehicles.
These are the opportunities. However the company
has put in place a very proactive Corporate Social
Responsibility (CSR) committee to address
potential strategies that will make operations more
sustainable.
 The range of Super Milo fuel efficient buses are
powered by super-efficient, eco-friendly engines.
The bus has optional organic clutch with booster
assist and better air intakes that will reduce fuel
consumption by up to 10%.
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 Nano is the cheapest car in the World - retailing at
little more than a motorbike. Whilst the World is
getting ready for greener alternatives to gas-
guzzlers, is the Nano the answer in terms of
concept or brand? Incidentally, the new Land Rover
and Jaguar models will cost up to 85 times more
than a standard Nano!
 In the summer of 2008 Tata Motor's announced
that it had successfully purchased the Land Rover
and Jaguar brands from Ford Motors for UK £2.3
million. Two of the World's luxury car brand have
been added to its portfolio of brands, and will
undoubtedly off the company the chance to
market vehicles in the luxury segments.

 Other competing car manufacturers have been in

the passenger car business for 40, 50 or more
years. Therefore Tata Motors Limited has to catch
up in terms of quality and lean production

 Sustainability and environmentalism could mean

extra costs for this low-cost producer. This could
impact its underpinning competitive advantage.
Obviously, as Tata globalizes and buys into other
brands this problem could be alleviated.

 Since the company has focused upon the

commercial and small vehicle segments, it has left
itself open to competition from overseas
58
 companies for the emerging Indian luxury
segments. For example ICICI bank and
DaimlerChrysler have invested in a new Pune
based plant which will build 5000 new Mercedes-
Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford,
Honda and Toyota. In fact the entire Indian market
has become a target for other global competitors
including Mahindra and Mahindra, Maruti Udyog,
General Motors, Ford and others

 Rising prices in the global economy could pose a

threat to Tata Motors Limited on a couple of fronts.
The price of steel and aluminum is increasing
putting pressure on the costs of production. Many
of Tata's products run on Diesel fuel which is
becoming expensive globally and within its
traditional home market.

59
 Survey conducted by (C.S.O) Central statistical
organization

US based consultancy, keystone predicts that India will

become world’s third largest automobile market by 2030.
Overall size expected to exceed 20 million with compounded
annual growth rate of over 12%.

Released on: 1st

July, 2009

60
TATA Motors’s June 2009 DOMESTIC
SALES at 43,244 nos.

Tata Motors’ total sales (including exports) of Tata commercial and

passenger
Vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles
sold in June last year. The company’s domestic sales of Tata
commercial and passenger vehicles for the month of June 2009 were
43,244 nos., a 1% decline over 43,814 nos. sold in June last year.
Cumulative sales (including exports) for the company for the quarter at
123,113 nos., declined by 7%, compared to 131,733 nos. sold last
year.

Commercial Vehicles
The Company’s sales of commercial vehicles in June 2009 in the
domestic market were 26,205 nos., a 2% decline compared to 26,797
vehicles sold in June last year. LCV sales were 16,256 nos., a growth of
17% over June 2008, while
M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but
an increase of 15% over May 2009. Cumulative sales of commercial
vehicles in the domestic market for the first quarter of the fiscal were
72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales
stood at 26,626 nos., a decline of 26% over last year, while LCV sales
for the quarter were 45,430 nos., a growth of 27% over last year.

61
Passenger Vehicles
The passenger vehicle business reported a total sale and distribution
off take of 19,513 nos. (17,039 Tata + 2,474 Fiat) in the domestic
market in June 2009, an 11% increase compared to 17,567 nos.
(17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over
16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range
grew for the fifth consecutive month at sales of 10,210 nos. -- a growth
of 19% over June 2008. The Indigo family recorded sales of 3,522 nos.,
a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos.
of May 2009. The Sumo/Safari range accounted for sales of 3,307 nos.,
a decline of 11% compared to June 2008, but a growth of 29.7% over
2,550 nos. of May 2009.

Exports
The Company’s sales from exports at 2,155 vehicles in June 2009
declined by 37% compared to 3,431 vehicles in June 2008. The
cumulative sales from exports for the fiscal at 5,220 nos. declined by
43% over 9,159 nos. in the same period last year.

62
63
BIBLIOGRAPHY
Books:
1. Philip Kotler, Kevin Keller (2009),
Marketing Management (Thirteenth
Edition)
2. Marketing Management, Tata
McGraw Hill
Company Rajan Saxena (Third
Edition)

MAGAZINES:
A) OUTLOOK BUSINESS (FEB, 2009)
B) BUSINESS STANDARD (April-July
2009)
C) 4P’S OF BUSINESS AND
MARKETING (June 2009)
D) BUSINESS TODAY - Pick and
Choose

INTERNET:
64
 1. Tata Motors' Official Website
2. Wiki - Tata Motors Ltd
3.
htttp://www.moneycontrol/com/tata
- group/Tata motors
4.
http://www.yahoofinance.com/tata
motors
5.http://www.carwale.com/resea
rch/cars

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