tata motors - marketing st

7/27/2019 Tata Motors - Marketing St.

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Summer Training Project Report

ON

Developing marketing strategiesFor increasing the saleOf

Light Commercial Vehicle

Of

TATA MOTORSA Report Submitted to

Mahamaya Technical University, Noida

In partialfulfilmentfor the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

By

Ravi kumar

Univ. Roll No:- 1215370023

Semester III Session: 201314

Under the guidance of:-

Mr. Deepak DayalMgr. (CVBU)

TATA MOTORS

Skyline Institute of ENGINEERING and Technology

Skyline Group of Institutions, Greater Noida 1


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(153)

Plot No - 3, Knowledge Park I I , Greater Noida Gautam Buddha Nagar 201

306 ((UP)

Skyline Institute of Engineering &Technology

Affiliated to Mahamaya Technical University, NoidaApproved by AICTE, Ministry of HRD, Govt. of India.

Plot No 3, Knowledge Park II, Greater Noida, Gautam Buddha Nagar 201306 (NCR UP). Ph: 0120 2320206;Fax: 2320207

Department of Management Studies

TO Whomsoever IT MAY CONCERN

Th i s i s to cer t i f y that the Summer Tra in ing

Research P ro jec t Repor t ent i t l ed Developing

marketing strategies

For increasing the sale Of Light Commercial Vehicle Of

TATA MOTORShas been p repared by Mr . Ravi

kumar bear ing Un iv . Ro l l No : - 1215370023 andenro l l ed as MBA I I I Semester s tudent a t Sky l i neIns t i tu te o f Eng ineer ing and Techno logy ,Greater No ida .

T hi s r ep or t e mb od ie s t he o rig in al w or kd on e b y t h e s tu de nt a nd p ar t i al ly f ul f i l l s t herequ i rement o f the Mahamaya Techn ica lU ni ve rs it y t o a wa rd t he d eg re e o f Ma st er o f Bus iness Admin i s t ra t i on

...............H e a d o f t h e I n s t i t u t i o n



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Acknowledgement

I would like to thank and express deep sense of gratitude to Mr.

DEEPAK DAYAL (manager LCVBU) area sales and service office

,mentor at TATA MOTORS .It was a great pleasure working under

him .I express my hearty thanks to my college guide Prof.

N.P.Singh. Who granted

me permission to do the project .I am indebted to Prof. N.P.Singh Who

always inspires us towards achieving goal through his professional

experience. Express my special thanks to the respondents who spared

their valuable time in answering the questionnaire. I am also thankful to

all my Friends for their constructive criticism and encouragement

that helped me making my project come true...

Finally my sincere thanks to all ,who were directly or indirectly

,involved with the progress and success of my work.



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(RAVI KUMAR)

Preface

If we can compare marketing to a long train with a multiple compartments,then marketing research would justify claim the dual of the engines that

powers the train and the links that connects the individual compartments toform a cohesive functional units. In others words, marketing research is

pervasive- the brain and the brawn of any marketing organization.

The automotive industry is at the centre of Indias new global dynamics.TATA MOTORS Commercial Vehicle Business Unit (CVBU) is adivision ofTATA MOTORS, having a TATA MOTORS product rangecovers Medium and heavy, light commercial vehicle, small commercialvehicle and buses.

As the project title Marketing Strategy for Increasing The Sale OfLight Commercial Vehicle Suggests about the market viability of TataLPT 407, LPT 709EX, LPT 909EX, LPT 1109EX .While doing survey Irealize that the things learnt from the books are quite different from theactual practice in field.

The body of the project report takes a micro level approach, using each stepof the marketing research process. The main source of analyzing the data isthrough questionnaires. A complete analysis has been done in research

methodology part to find the market potential of Light Commercial Vehiclein Jharkhand.

A complete Analysis of variance has been done to find the kind of marketpotential in Jharkhand.



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The best part of this project report is the operating economics of customersbased on the customer survey. This part directly shows the market leader ofLight Commercial Vehicle in Jharkhand.

At the last part I wrap up the project with suggestion and recommendationto enhance the future growth and prospects of the company.



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DECLARATION

I RAVI KUMAR student ofSkyline Group of Institutions, Greater

Noida(2012-14) declare that every part of the Project Report Developingmarketing strategiesFor increasing the sale Of Light Commercial Vehicle

Of TATA MOTORS that I have submitted is original.I was in regular contact with nominated guide and contacted times for

discussing the project.

Date of project submission:-

(RAVI KUMAR)



7/98

CONTENTS

1. . Certificate

2 Acknowledgement

3. Preface

4. DECLARATION

5. Introduction

6. History

7. Profile of TATA MOTORS

8. Problem Definition , Objectives & Scope

9. Research Methodology & Design Organization

Structure

10. Distribution Channel

11. Micro Perspective on LCV sector

12. Competitors Profile13. Finding & Analysis

14. Technical Specification & Price

15. TATA MOTORS Network

16. Details about Jharkhand

17. Sales Promotion

18. Analyzing the Competitor

19. SWOT Analysis & Pricing Issue

20. Suggestions21. Limitations

22. Conclusion

23. Bibliography

24. Appendix



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TATA MOTORS

Aim of the company

To become a truly global company.

Vision of the company

To be a world class corporate constantly furthering the interests of all itsstakeholders.

J.R.D.

TATA

Mission of the company

Towards:

Shareholders:-To consistently create shareholder value by generating returns inexcess of weighted Average cost of capital (WACC) during the upturnand at least equal to weighted Average Cost of Capital (WACC) during

the downturn of the business cycle.

Customers:-To strengthen the Tata brand and create lasting relationship with thecustomers by working closely with business partners to provide superiorvalues for money over the life cycle.

Employees:-To create seamless organization the incubates and promotes innovation,excellence and Tata core values.

Purpose:-



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To create economic asset for road transport for bulk movement of goodsand people participate in managing these over the life of assets in order

to create and capture economic values.

HISTORY OF TATA MOTORS

1945-The Company was incorporated on 1st September at Mumbai tomanufacture diesel vehicles for commercial use, excavators, industrialshunter, dumpers, heavy forgings and machine tools.

-The commercial diesel vehicles which were known `Tata Mercedes Benz'(TMB)are now called `Tata' vehicles after the expiry of the collaborationagreement with Daimler-Benz AG, West Germany. The company also usedto manufacture pulp and paper making machinery.

1946

-Tata Engineering undertook manufacture of 5000 'KC' broad gauge openwagons for the Indian Railway.

1959

-Research and Development Center set up at Jamshedpur.1960

-The company's name,which was Tata Locomotive & Engineering

Company Ltd. was changed to Tata Engineering & Locomotive CompanyLtd.

1988

-During the year company negotiating with Daimler-Benz formanufacturing their World Concept Truck in India. These vehicles were to



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be marketed overseas by Daimler-Benz under their brand which would leadto technological upgradation of the existing range of vehicles in India.

1993

-Tata vehicles were launched in Argentina Chill, Paraguay etc.

1994

-During the year company introduced the Tata SUMO and LPT 709. Thecompany developed a new fuel injected, 4 cylinder petrol engine with theassistance of AVL Austria.1995

-During the year a new double pick-up and Army Version of various TelcoVehicles were developed. A new pero engine and turbo diesel engine, anup-graded 709 LCV, new sports utility vehicle Safari expected to belaunched shortly.

1997-Telco became the first Indian private company to reach the sales ofRs.10,000 crore.-Telco is the second Indian four wheel maker after Mahindra and Mahindrato participate in the show which has attracted 200 exhibitors from 28countries including world market leaders like BMW and Mercedes.

1998

-Telco proposes to set up authorized service stations every 100 km on every

highway.

1999

-In Oct 1999, the Company won the National award for R&D Efforts inDevelopment of Indigenous Technology in the Mechanical EngineeringIndustries Sector instituted by Department of Scientific and IndustrialResearch, Ministry of Science and Technology for the year 1999.



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2002

-Uses Tata Safari in Ram Gopal Varma's film 'Road', spends close to Rs 1crore for the in-film product.

-Collaborates with Nippon-Arcelor for technical knowhow on CR steel.

2003

-Receives Teri's (The Energy and Resources Institute) CoRE-BCSD(Corporate roundtable on development for sustainable development andenvironment-business council for sustainable development) corporate socialresponsibility (CSR) awards for '01-02.

-Overtakes Hyundai in passenger vehicle market.

-Company turns around, posts profit of Rs 300.11 crore as against the lossof Rs 53.73 crore the previous corresponding period-Crosses production milestone of 3 million.

-Tata Motors Ltd signed a binding Memorandum of Understanding (MoU)with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for theacquisition of this company.

-Introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV).

-The Company shall be changed from 'TELCO ' to 'TATA MOTORS' w.e.fDecember 24, 2003.

2004

-Tata Motors launch an upgraded version Indica on January 15, 2004, in abid to shore up sales of the small car.

-Auto Expo: Tata unveils new version of Indica.

-Tata Motors unveils Indica V2.

-Tata Motors launches new Indica V2 in Kerala.

-The much hyped Rs one lakh passenger car project of Tata Motors wasgoing ahead as planned.



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-Tata Motors in talks with bus body builders to franchise manufacturing.

-Tata Motors enters agreement with Ukraine bus building firm.

-Tata Motors enters into agreement with Etalon.-In a move to consolidate its presence in the light commercial vehiclessegment, Tata Motors has launched a new variant of its 407 series withincreased pay load capacity called SFC 407EX.

-Tata Motors buys Daewoo truck unit for Rs 465 crore.

-Tata Motors unveils Tata SFC 407 EX in Kerala.

-Tata Motors inks agreement with Austrian, French companies.

-Acquires Daewoo Commercial Vehicle Company Ltd (DWCV), Korea.-Tata Motors launches new 6-TN truck.

- Tata Motors forays into used truckbiz with Tata Preowned.-Tata Motors, the country's largest commercial vehicles manufacturerunveiled the new LPT 909EX Turbo Truck in Tamil Nadu.

-Tata Motors and Tata Africa unveiled a range of passenger cars, utilityvehicles, pick-ups, trucks and buses for the South African market.

-Tata Motors has launched a facelifted version of its multiutility vehicle,Tata Sumo.

-Tata motors rolls out Tata SFC 407EX BS II turbo light commercialvehicle.

-HR-training division of Tata Motors bags the prestigious andinternationally recognised "Golden Peacock National Training Award" inthe category of `Large Employer'..-Tata Motors launches Indigo Marina on September 14, 2004.



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-Tata Motors joins hands with Magma Leasing Ltd.

-Bharat Petroleum Corporation Ltd (BPCL) has entered into a marketingtie-up with automobile manufacturer Tata Motors for marketing of engine

oils as co-branded lubricants for their commercial vehicles.-Tata unveils Indigo Marina in Kerala.2005

-Tata Motors partners with IOC for bio-diesel pilot project.-Tata Motors launches ACE.

-Tata Motors unveils Tata Safari DICOR in Kerala market on August 11.

2006.

-Tata Motors rolls out 2 luxury variants of Indigo.

-Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 4.10 lakhfor DLG variant and Rs 4.31 lakh for DLX.2007

-Tata Motors has been presented the Golden Peacock Global Award for

Corporate Social Responsibility (CSR) in the Large Business category bythe Institute of Directors.

-Tata Motors buys Nissan facility in S. Africa.

-Tata Motors has got a prestigious order from the Delhi TransportCorporation (DTC) for 500 non-AC, CNG-propelled.

2008

-Tata Motors has captured the US based motors company Land rover andJaguar in $2 Billion.

-Tata Motors going to Launches Nano car in Rs.1 lakh.

-Tata motors sell over 12000 indica vista in Kerala.



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-Tata motors to introduce Air cars it the next big things.



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The First Truck of TATA MOTORS

PROFILE OF TATA MOTORS

Quality policy- Tata Motors is committed to maximizingcustomer satisfaction and strives to achieve the goal ofexcellence through ongoing development, manufacture and saleof reliable, safe, cost-effective, quality product and services ofinternational standards, using environmentally sustainabletechnologies for improving the levels of efficiency and

productivity within the plants and ancillaries. Tata Motors also

has a commitment towards improving the quality of life of itsemployees, both within and out side its plants and offices,through improved work practices and social welfare schemes.

RatanN.Tata

Board of Directors

Mr. Ratan N. Tata (Chairman) Mr. N A SoonawalaDr. J J Irani Mr. V R Mehta

Mr. R Gopalakrishnan Mr. Nusli NWadia

Mr. S A Naik Mr. S M Palia

Mr. Ravi Kant Mr. P P KadleMr. P M Telang



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Senior Management

Mr. Ravi Kant Managing Director

Mr. P P Kadle Executive Director (Finance and Corporate Affairs)

Mr. A P Arya President (Heavy and Medium CommercialVehicles)

Mr. P M Telang President (Light and Small Commercial Vehicles)

Mr. Rajiv Dube President (Passenger Cars)

Mr. C Ramakrishnan Vice-President (Chairman's Office)

Mr. Shyam Mani Vice-President (Sales & Marketing -Commercial Vehicle Business)

Mr. K C Girotra Vice President (Lucknow Works & FBV)

Mr. R S Thakur Vice President (Finance)

Mr. M V Rajarao Vice President (Manufacturing - Pune)

Mr. R K Ghosh Vice President (Customer CarCommercialVehicles)

Mr. S Krishnan Vice President (Commercial - Passenger Cars)

Mr. Zackria Sait Vice President (Technical Services)

Mr. Akshaykumar

Mankad Head (Car Plant)Mr. P Y Gurav Vice President (Corporate Finance Accounts and

Taxation)

Dr. S J Tambe Vice President (Human Resource)

Mr. H K Sethna Company Secretary

Corporate Communications

Mr. Debasis Ray

About the Company:-

Established in 1945, Tata Motors is India's largestautomobile company, with revenues of Rs 24,000 crore (USD 5.5 billion) in2005-06. The company began manufacturing commercial vehicles in 1954



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with a 15-year collaboration agreement with Daimler Benz of Germany. Itis the leader by far in commercial vehicles in each segment, and the second-largest in the passenger vehicles market with winning products in thecompact, midsize and utility vehicle segments. The company is the world's

fifth-largest medium and heavy commercial vehicle manufacturer.

Areas of Business:- Tata Motors' product range covers passenger cars,multi-utility vehicles as well as light, medium and heavy commercialvehicles for goods and passenger transport. Seven out of 10 medium andheavy commercial vehicles in India bear the trusted Tata mark.The

company developed India's first indigenously developed light commercialvehicle, India's first sports utility vehicle and, in 1998, the Tata IndicaIndia's first indigenously manufactured passenger car. Within two years oflaunch, Tata Indica became India's largest selling car in its segment.

Commercial vehicle business unit:-

The company has over 130 models of light, medium and heavy commercialvehicles ranging from two tonnes to forty tonnes, buses ranging from 12-seaters to 60-seaters, tippers, special purpose vehicles, off-road vehicles anddefence vehicles.

Passenger car business unit:-

The company's passenger car range comprises the compact car Indica, themidsize Indigo and Indigo Marina in both petrol and diesel versions. TheTata Sumo, the Tata Safari and its variants are the company's multi-utilityvehicle offerings.

In addition to the growth opportunities in the domestic market, the companyis pursuing growth through acquisitions. In 2004, it acquired the DaewooCommercial Vehicle Company, Korea's second largest truck maker, nownamed Tata Daewoo Commercial Vehicles Company. In 2005, Tata Motorsacquired a 21-per cent stake in Hispano Carrocera, a reputed Spanish bus



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and coach manufacturer, with an option to acquire the remaining stake aswell.

Research and development:-

Tata Motors invests approximately up to 2 per cent of its annual turnover onresearch and development, with an emphasis on new product / aggregatesdevelopment and technology upgradation. Its Engineering Research Centrein Pune employs over 1,400 scientists and engineers and has India's onlycertified crash-test facility and hemi-anechoic chamber for testing of noiseand vibration.

The company also draws on the resources of leadinginternational design and styling houses like the Institute of Development in

Automotive Engineering, SPA, Italy, and Stile Bertoni, Italy. The companyhas also been implementing several environmentally sensitive technologiesin manufacturing processes and uses some of the world's most advancedequipment for emission checking and control.

Environmental responsibility:-

Tata Motors has led the Indian automobile industry's anti-pollution effortsthrough a series of initiatives in effluent and emission control. The company

introduced emission control engines in its vehicles in India before the normwas made statutory. All its products meet required emission standards in therelevant geographies. Modern effluent treatment facilities, soil and waterconservation programmes and tree plantation drives at its plant locationscontribute to the protection of the environment and the creation of Green

belts.

Exports:-

Tata Motors' vehicles are exported primarily to Europe, Africa, the MiddleEast, South and South East Asia and Australia. The company also hasassembly operations in Malaysia, Bangladesh, Ukraine, Kenya and Russia.Over the years, the company has received more than 50 awards from thegovernment of India's Engineering Export.Promotion Council, for its export initiatives. While currently about 14 percent (as on March 31, 2005) of its revenues are from its international



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business, the company intends to increase its international business throughorganic and inorganic growth routes.

Associates:-

Tata Motors has made substantial investments in building associate andsubsidiary companies that complement and support its business activities.These include:

Tata Daewoo Commercial Vehicle Company manufactures heavy trucksranging from 15T GVW to 45T GVW. Tata Motors acquired this companyin March 2004.

Tata Cummins, a joint venture with Cummins, USA, manufacturesCummins engines for Tata Motors.Telco Construction Equipment Company, a joint venture with HitachiMachinery Company, Japan, is engaged in the manufacture and sale ofearthmoving machinery and construction equipment such as hydraulicexcavators, cranes and wheel-loaders.

Tata Technologies provides IT support in the areas of engineering design,development and validation, business information systems and ERPsystems.

HV Axles manufactures axles for Tata Motors' medium and heavycommercial vehicles.

HV Transmissions, supplies gearboxes for the company's medium andheavy commercial vehicles.Tata Holset, a joint venture between Holset Engineering Company, UK, a

wholly-owned subsidiary of Cummins Engine Company, USA and theTatas (Tata Motors, Tata International and Tata Industries are shareholders).Incorporated in 1994, this company manufactures turbochargers for enginesmade by Tata Cummins as well as other auto manufacturers.

TAL Manufacturing Solutions manufactures painting systems, weldinglines, material handling systems and robotics. It also develops factory



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automation solutions and provides consultancy services in the field ofmanufacturing processes and factory layouts.Concorde Motors (India): Retails Tata Motors' range of passenger vehicles.

Tata Precision Industries, Singapore and Tata Engineering Services,Singapore, are engaged in the manufacture of high precision tooling andspare parts, and warehousing, respectively.

Nita Company, Bangladesh, is engaged in the assembly of Tata vehiclesfor the Bangladesh market.

Awards:-

Tata Motors has been chosen as India's Most Trusted Brand in cars in aReaders Digest-AC Nielsen consumer survey in 2006.

Tata Motors' mini-truck, Ace, which has created an all-new category in thecommercial vehicles market, received the BBC-Top Gear' Design of theYear 2006. The company's Star bus low-floor city bus and the Novus heavytruck were adjudged second and third respectively.For the second consecutive year, Tata Motors was rated by Auto Monitoras the 'Commercial Vehicle Manufacturer of the Year' for 2006.

The Commercial Vehicle Business Unit won the CII-Exim Bank Award for2005 for Business Excellence, for being a role model of excellence inmanagement. The award particularly recognizes excellence in themanagement of quality as a fundamental process.

The two divisions of the company also won the Tata Group's JRD QVAwards for Business Excellence in 2005.

The Jamshedpur plant and the car plant at Pune received the UnionMinistry of Power's National Energy Conservation Award, which recognizesignificant initiatives to reduce energy intensity and improve energyefficiency. The Jamshedpur plant won the award for the fourth year in arow.

The Commercial Vehicle Business Unitand the Passenger Car Business Unit also received the CII's National Award



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for excellence in energy management. The Foundry Division at the Puneplant received the Gargi Huttenes Albertus Green Foundry of the YearAward.



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LOCATION OF THE PLANTS

JAMSHEDPUR

Birth June 1,1945Plant area 822acres or 35,80,632sq.meters

Divisions Automobile, Foundry, Forge, HRD,R&D, Support

Facilities The Township

PUNE

Birth Pimpri (1966) Chinchwad (1966)

Plant area 380.44 acres 126.15 acresDivisions Production Engineering

Vehicle ManufacturingcomplexEngineering ResearchCenterElectronics

Foundry



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Training

LUCKNOW

Birth 1991

Plant Area 600 acres

Divisions AssemblyTraining

INDUSTRY GROWTH



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FUTURE OF THE AUTOMOBILE IN

ECONOMY



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GROWTH AND OUTPUT IN INDUSTRY

TATA MOTORS planning to invest in Uttaranchal for new capacity

manufacturing department.



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TATA MOTORS' FLASH FIGURES FORMAY 2007

PRODUCTION

Category May '07 May '06 May'05 2007-08 2006-07 2005-06

M& HCV 13901 13594 9910 25989 26229 16536

LCV 12159 12143 6919 25844 21936 12032

UTILITY 3836 3633 2223 7792 6513 4641

CARS 14681 17257 12206 31546 28568 25888

TOTAL 44577 46627 31258 91171 83246 59097

SALES

A. For the month

Domestic Exports Total

Category May '07May'06 May '05 May '07 May '06 May '05 May '07 May '06

May'05

M& HCV 10500 12682 8177 934 779 403 11434 13461 8580

LCV 10175 9221 5161 2012 1828 1651 12187 11049 6812

UTILITY 3363 2862 2493 84 215 10 3447 3077 2503

CARS 14217 15253 11511 1273 1517 1187 15490 16770 12698

TOTAL 38255 40018 27342 4303 4339 3251 42558 44357 30593

B. For the year

Domestic Exports Total

Category 2007-08 2006-07 2005-06 2007-08 2006-07 2005-06 2007-08 2006-072005-06

M& HCV 20892 24799 13425 1813 1338 835 22705 26137 14260

LCV 19390 16778 8281 4101 3467 3010 23491 20245 11291

UTILITY 6703 5110 4529 141 447 27 6844 5557 4556

CARS 27719 26333 22211 2285 2659 2164 30004 28992 24375

TOTAL 74704 73020 48446 8340 7911 6036 83044 80931 54482



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Five core values of Tata motors

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test ofpublic scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customersaround the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in thequality 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 theworld, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive tothe countries, communities and environments in which we work,always ensuring that what comes from the people goes back tothe people many times over.

TATAs Culture



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Organizational Culture:-

It refers to a set of shared meaning held by the members of the organization

that differentiates one organization from the other. Every organization hasits own unique culture.

Tatas Culture is very much prevalent in its statement:-

Improving the quality of Life.

A century of Trust

Aspects of TATAS culture:-

Integrity Honest and ethical in every aspects

Team approach Working in teams

Equality Treating all employees equally without any

discriminationon grounds of cast, creed, sex, etc.

Flexibility Open to change in the present competitive scenario

Welfare Improving the life of its employees both organization as

well asoutside the organization.



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Subsidiaries:-

Tata Construction equipment company Ltd.(TELCON):- Its principalbusiness is manufacture and sale of construction, material handling andearthmoving equipment.

Tata technologies Ltd.:- It oversees the IT requirements of Tataengineering and provides services for SAP implementation;CAD/CAM

based design and e-commerce facilities to customers in India and abroad.

Seba properties Ltd.:- It is an investment and finance company and a

wholly owned subsidiary of tata engineering since its inception. It isregistered with RBI as a non Banking finance company.

Telco Dadajee Dhakjee Ltd. (TDDL):- It is an investment and financecompany and proposes to undertake activities pertaining to the sales andservices of tata engineerings vehicles and spare parts.

Minicar (India) Ltd.:- Formerly known as Mazda Industrial chemicalsLtd., this company was incorporated on January 18, 1972 and is currentlyengaged in the business of automobile sales and services.

HV Transmission Ltd.:- It was incorporated on March 13, 2000 with theobjective of acquiring the Heavy- Duty Gear Box Division of Tataengineering at Jamshedpur as a going concern. It supplies transmissions andtheir parts to Tata engineering against purchase orders raised by Tataengineering on HVTL.

HV Axles Ltd.:- It was incorporated on March 13, 2000 with the objectiveof acquiring the Heavy duty axle division of Tata engineering at

Jamshedpur as a going concern. It supplies axles and their parts to Tataengineering against purchase order raised by Tata engineering on HVAL.

Telco Automation Ltd.:- It was incorporated on March 13, 2000 with theobjective of acquiring the machine tool and growth division of tataengineering as a going concern. As and when required, tata engineeringsources factory automation equipment from TAL.



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Tata Technologies, USA : - It was incorporated on August 22, 1999 andbecame a wholly owned subsidiary of Tata technologies limited onDecember 22, 2000. The company is engaged in the business of computer

consultancy and related services.Tata Motor finance: - Tata Motor finance is the auto financing arm of TataMotors, providing finance primarily for Tata Motors vehicles. It wasestablished in June 2003, through the joint marketing arrangement, betweenTata Motors' Bureau for Hire Purchase and Credit (BHPC) division, andTata Finance's Asset Financing arm. It became a division of Tata Motors inApril 2005, with the merger of Tata Finance with Tata Motors.

Strategic alliances:-

Tata engineering has several joint ventures and alliance. These included

Tata Cummins Ltd.:- A joint venture with Cummins engine company inc.,USA, makes fuel efficient, low emission, environment friendly dieselengines.

Tata Holset Ltd.:- A joint venture with Holset engineering company, UK,makes turbochargers for diesel engines manufactured by Tata CumminsLtd. and other OEMs.

Concorde Motors Ltd.:- A joint venture with Jardine International Motors(Mauritius) for dealership of passenger vehicles. Concorde has dealershipfor Tata engineering passenger vehicles in Delhi, Mumbai, Bangalore,Ludhiana, Hyderabad, Chennai and Lucknow.

Tata precision Industries Pvt. Ltd.:- Singapore for the manufacture and saleof high precision tooling as well as electronic and plastic components forthe computer industry.

Tata Engineering Services Ltd.:- Singapore, for the sale of spare parts fortata vehicles.

Nita company Ltd.:- Bangladesh, for the assembly and sale of the tatacommercial vehicles.



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RESEARCH AND DEVELOPMENT

TATA MOTRORS with 1,400 engineers andscientists, the company's Engineering ResearchCentre, established in 1966, has enabled

pioneering technologies and products. Thecompany today has R&D centers in Pune,Jamshedpur, Lucknow, in India, and in SouthKorea, Spain, and the UK.

Tata Motors investup to 1.3% of its total turnover on research anddevelopment, with an emphasis on new

product/aggregate development and technologyup gradation.The company also draws on the resource ofleading international design styling house likeInstitute of Development in AutomotiveEngineering, SPA and Italy.

Designing and Styling (CAD CENTRE)

The CAD centre is equipped with 53 state-of-the-art CAD stations and thelatest software. The CAD centre is a vital organ of ERC's Cab DesignSection.CAD designing involves development of vehicle specifications, stylinginteriors and exteriors, reviewing the styling from the engineering andaesthetic points of view, virtual prototyping to check for design

acceptability andfeasibility of manufacture.



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INTRODUCTIONTO

PROJECT

DEVELOPINGMARKETING

STRATEGIES FOR

INCREASING THE SALEOF LIGHT COMMERCIAL

VEHICLES OF TATAMOTORS IN

JHARKHAND



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PROBLEM DEFINITION

A marginal decrease in the market share of TATA MOTORS in the lightcommercial vehicle sector in Jharkhand.

OBJECTIVE OF THE STUDY

1. To develop marketing strategies for increasing the sale of TATAMOTORS light commercial vehicles in Jharkhand.

2. To evaluate critically market acceptance of Tata Motors (L.C.V)products.

3. To identify the market acceptance of TATA 407, 709, 909, 1109

4. To find out the customers perception on different attributes of the

products .

5. To identify the factors which can affect the sales of the abovementioned vehicles.

6. To analyze the strength and the weakness of the Tata motors in theL.C.V sectors and its competitors.

7. To acquire knowledge about the different financer and their term andconditions.

8. To analyze the channels of distribution.



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SCOPE OF THE STUDY

Scope of the study covers a wide range of theoretical application andadministrative aspect, under which product reaches from the producer to theultimate consumer.

The objective is mainly to find the true value of business activity of thefirm. Finally, it will be concluded after successful completion of the studiesin respect of fruitful implementation of the knowledge.

The present study aims to analyse the existing practices in market by TataMotors and its competitors and to suggest any modification if required inthe marketing strategy to increase the market share in the Jharkhand.

We can primarily be concluded its scope under following heads:-

To know the level of customer satisfaction.

To study the market share of each company.

The impact of various promotional activities of the companies.

Comparative study of the strategies applied by the competitors

Increasing sales volume of the products.

Analyzing the marketing mix



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RESEARCH DESIGN

The study was exploratory type at the beginning because much was notknown about the dealers and the customers but at the later stage it was adescriptive type because it depicts characteristics or functions of the market.It describes the number, distribution and socio-economic characteristics of

potential customer for the product. The study was undertaken to answer thefollowing research questions.

1) What are the demographic and socio-economic characteristics ofprimary member?

2) How extensively vehicles are used and the attributes towards suchvehicles.

3) What will be the interest for the new upgrade vehicle?

4) How can be distribution channel more effective.

5) In which of the basic features TATA needs to be work on.

RESEARCH METHODOLOGY

First of all an exploratory study was conducted with the helpof a pilot questionnaire with a sample size of 10 in order to knowthe various attributes differentiating the different models of LCV

in this competitive market. Based on the findings of the study adescriptive study was conducted.

The survey was conducted by takingin-depth interview of dealers of the four companies along with fleet ownersand staffs of the LCV. Datas were also collected from the regional



40/98

transport office to know which vehicle has sold the most in which city inthe last fiscal year 2006-07 ending march 31st.

TOOLS USED FOR DATA

COLLECTION

DATA SOURCES

PRIMARY DATA SECONDARY DATA

INDEPTH TELEPHONIC QUESTIONNAIRE

INTERVIEW

RTO NEWSPAPERS REPORTS

JOURNAL INTERNET

PAMPHLETS

Statistical Tools used for analysis

1. Bar diagram2. Pie charts3. Tables



41/98

Sample size

The total sample size was 142 .

APPROACHES TO DATA COLLECTION

The approach to data collection was survey method. Survey is conductedthrough questionnaire .The questionnaires are comprised of both open

ended and close-ended question. Close-ended questions are used to bringobjectives to the survey and to bring forth the answers needed elaboratingopen-ended question were used, so that respondents can express their viewsclearly without any binding of format.

AREA COVERED FOR THE STUDY

Tatanagar

Ranchi ( capital )

Hazaribagh

Dhanbad



42/98

ORGANIZATIONAL STRUCTURE

AGMovt &Inst sales

DMO&DD

AGM

LCVSALES

RMNorth

RMSouth

RMWest

RM

East

AreaOffice

AreaOffice

RSO RSO RSO

RSO

General Man ager

Sales ( CVB U)

MgrLogistics

AreaOffice

AreaOffice

Sr VP (Manuf J SR)

Sr vp (manuf pune)

GM Manuf lucknow)

GM (Corporate HRD)

DG M(CUSTOMER SERVICES-C V

Lobs 1,2,3,4

BUSINE SS UNIT(CVB U)

The figure above shows the organizational hierarchy which is related withthe working of the Area office with other departments. The project wasconducted in the Area office which primarily deals with the Marketing andsales of the commercial and passenger Vehicles.

AREA OFFICE

NEW DELHI ,CHANDIGHAR, LUCKNOW, JAIPUR, DEHRADUN,

HYDERABAD,VIJAYWADA,CHENNAI,BANGALORE,

AHMADABAD, INDORE, JAMSHEDPUR, RAIPUR, NAGPUR,



43/98

TATA MOTORS LTD

CVBU PCBU

INDICAM&H CV LCV/ICV SCV BUS

16 TON 4 TON

25 TON + HAVIES

LCV 4 - 7 TON

ICV

9 11 TON

207 DI

ACE

I MCV

11 15 TON

LCV

4T 7 T

ACE PLATFORM

SOME NEW

VEHICLES COME

SOON

TRUCK

TRIPPER

TRAILER

LOB

LOB LOBLOB

PUNE, MUMBAI, KOLKATA, PATNA, GUWAHATI,

BHUWANESHWARTATA MOTORS PRODUCT LINE

THE ABOVE FIGURE SHOWS US THE PRODUCT LINE OF TATA

MOTORS LTD



44/98

DISTRIBUTION CHANNEL

Name & Address of the Dealers Tel / Fax / Cable / e-Mail inJharkhand

Mr. R. P. Kamani

ENAR INDUSTRIAL ENTP. LTD. Tel.:'06542-247696 /WESTERN AVENUE, BOKARO 247684 ; 9431180444STEEL CITY DHANBAD - 827 001 Fax.06542-242915Jharkhand Cable:ENARCOe-mail.: [email protected]

Mr S. P. Sinha

JMA STORES LTD.

15, 16 PALIKA MARKET, NEAR BUS STAND Tel.:0326- 2303794 /HAZARIBAGH - 825 301 2303018 ;Jharkhand 9835184669

Fax.:0326-2303794Mr R. P. Choudhary

JMA STORES P. LTD. Tel.:06542-247641JHARIA ROAD, DHANSAR / 247772 ; 06546-DHANBAD - 828 106 09835149711Jharkhand Fax.:246977

e-mail.:[email protected]

Mr. Bipin Parikh / Mr. Diloo B. Parikh

MITHILA MOTORS LTD.

A-3, 2ND PHASE, ADITYAPUR- Tel.:0657-2407595 /KANDRA MAIN ROAD 2409159 / 2409961JAMSHEDPUR - 831 013 09835199324/9334658600



45/98

Jharkhand Fax.:0657-2200646e-mail.:

[email protected]

A MICRO PERSPECTIVE ONCOMMERCIAL VEHICLE SECTOR

Global demand for truck is largely cyclic and the stage of cycle is related tothe prevailing macro economic conditions. The economies are moreinterconnected now than ever before.

Value chain profitability: A series of cost reduction and restructuringprogrammes have been undertaken. The business has now been redefined

from one that was historically associated with manufacturing buses to onewhich encompasses all the aspects of providing means of transportation andconveyance by road.

Indian scenario: In developing countries such as India, the commercialvehicle sector is broadly classified into light commercial vehicles (LCVs)with gross vehicle weight (GVW) upto 7 tonnes and pay load upto 11tonnes

The key to growth in India is the development of the transport

infrastructure. The political environment is pushing for significant laborbenefits and investment to aid development of both the industrial andtransport infrastructure. This would seem to be a major factor in fuellingdemand for buses over the next decade.

Government policies: The commercial vehicle sector is controlled by thegovernment policies on depreciation norms, diesel pricing and the motorvehicles act. Change in depreciation norms will significantly affect thedemand for vehicles as they provide tax shelter to operators.

The motor vehicles act that came into effect in July 1989, intended tostreamline laws related to emission norms, maximum age of vehicles,restructuring on payload and other safety measures. However overloading

practices still prevail. The pricing of commercial vehicles to a great extentdepends upon excise duty which was rationalized to 16% in 2001-2002

budget.



46/98

Infrastructure key growth driver: In the long term, the long haul market willshift towards medium and heavy multi axel vehicles following closely thetrends in developed countries. M&HCVs are used for transport of heavycommodities such as steel, cement and fertilizers. LCVs are preferred for

high volume, low bulk cargo such as consumer goods and textiles for shortdistance haulage.

The commercial vehicles apart from being highly capital intensive arecharacterized by strong entry barriers, which include requirement of strongdistribution/after sale service network, vendor/ancillary network, longgestation period and technological adoptions to peculiar Indian conditions.Due to these barriers, the significant threats from MNC ventures.

The product life cycle for a commercial vehicle has new product launches toretain market share. New products that cater to niche consumer segmentshave also increased the marke4t segments. High ancillarisation is an integralfeature of the industry.

Legislation: Environmental legislation have made a significant impact onthe development of vehicle technology and the exhaust gas and particulatestructure of the industry since the early 1980s, particularly with regard toemission and safety.

Emission norms: India is implementing emission norms in two phases.Bharat stage 1 (EURO 1) norms were implemented in 1996 and Bharatstage 2(EURO 2) norms came into effect from October 1, 2001.

Future trends: The new product launched in recent times emphasize theincreasing customer expectations in terms of total solution to their needs,assured quality deliveries value for money and ready to use products.

Technological up gradation: Todays customer is happy with low cost

technology and is not worried by uptime issues. Technological up gradationwill be key activities for CV manufacturers and with need to focus on cost,weight, safety and noise suppression technology forecasting skills aregaining prominence and vehicles manufacturers are channeling their effortsin these areas to remain competitive.Value added services: The currentscenario with factors such as good damage, haphazard pricing of freightmovement, no adherence to schedules, lack of quality services and no



47/98

collaboration transportation for express/small cargo business providesimmense opportunities.

The

Main Competitors

Of

TATA MOTORS

in LCV sector are:-

Ashok Leyland



48/98

Mahindra& Mahindra

Eicher

The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's firstPrime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enterautomotive manufacture. In 1948, Ashok Motors was set up in what wasthen Madras, for the assembly of Austin Cars. The Company's destiny andname changed soon with equity participation by British Leyland and AshokLeyland commenced manufacture of commercial vehicles in 1955.

Since then Ashok Leyland has been amajor presence in India's commercial vehicle industry with a tradition oftechnological leadership, achieved through tie-ups with internationaltechnology leaders and through vigorous in-house R&D.

Access to international technologyenabled the Company to set a tradition to be first with technology. Be it full

air brakes, power steering or rear engine busses, Ashok Leyland pioneeredall these concepts. Responding to the operating conditions and practices inthe country, the Company made its vehicles strong, over-engineering themwith extra metallic muscles. "Designing durable products that makeeconomic sense to the consumer, using appropriate technology", became thedesign philosophy of the Company, which in turn has moulded consumerattitudes and the brand personality.



49/98


50/98

HOSUR : UNIT 2

HOSUR : UNIT 2A

ALWAR

BHANDARA

The birth of Mahindra & Mahindra began when K.C. Mahindra visited theUnited States of America as Chairman of the India Supply Mission. He metBarney Roos, inventor of the rugged 'general purpose vehicle' or Jeep andhad a flash of inspiration: wouldn't a vehicle that had proved its invincibilityon the battlefields of World War II be ideal for India's rugged terrain and itskutcharural roads?

Swift action followed thought. The Mahindra brothers joined hands with adistinguished gentleman called Ghulam Mohammad. And, on October 2nd,1945, Mahindra & Mohammad was set up as a franchise for assembling

jeeps from Willys, USA.Two years later, India became an independent nation and Mahindra &Mohammad changed its name to Mahindra & Mahindra. GhulamMohammad migrated to Pakistan post-partition and became the firstFinance Minister of Pakistan.



51/98

Since then, Mahindra & Mahindra has grown steadily in size and statureand evolved into a Group that occupies a premier position in almost all keysectors of the economy. The Group's history is studded with milestones.Each one taking the Group forward. In fact, today, its total turnover is about

4* billion dollars.These days, Mahindra is a group in a hurry, engaged in an ambitious,

sustained and prolonged penetration into the global arena. Its spirit can beencapsulated in the words of the poet Robert Frost, a favorite of India's firstPrime Minister, Pandit Jawaharlal Nehru:

"The woods are lovely, dark and deep,

But I have promises to keep,

And miles to go before I sleep,

And miles to go before I sleep. "

For Mahindra & Mahindra, this translates into many more milestones to beset up before it rests. If ever.

The Company's current Board of Directors is as follows:

1. Mr. Keshub Mahindra ( Chairman )2. Mr. Anand G. Mahindra ( Vice Chairman and ManagingDirector )3. Deepak Shantilal Parekh ( Director )4. Nadir Burjorji Godrej ( Director )5. M. M. Murugappan ( Director )6. Bharat Narotam Doshi ( Executive Director )



52/98

7. Arun Kumar Nanda ( Executive Director & Secretary )8. Narayanan Vaghul ( Director)9. Dr. Ashok Sekhar Ganguly ( Director )10. R. K. Kulkarni (Director )

11. Anupam Pradip Puri ( Director )12. Thomas Mathew T. ( Nominee of LIC )

Eicher Motors was founded in 1982 to manufacture a range of reliable,fuel-efficient commercial vehicles of contemporary technology. Theunit manufactures and markets commercial vehicles with Gross VehicleWeight (GVW) ranging from 5-25 tons.

Today, Eicher Motors is one of theleading manufactures of commercial vehicles in India with a 33% marketshare in the 7T-11T segment. The success and growth of this unit is a resultof various customer- driven strategies. The manufacturing facility is situatedin Central India Pithampur, Madhya Pradesh. Eicher Motorshas stepped into the Heavy Commercial Vehicle segment with its state-of-



53/98

the-art HCV, the "Eicher 20.16", the first commercial vehicle designed anddeveloped indigenously.

Eicher Motors functions through a strong three-

tier service network consisting of authorised distributors, service centresand company trained private mechanics. The vehicles are sold and servicedthrough a network of over 576 Authorized Contact Points all over India,supported by service centres and over 4500 company trained privatemechanics, who are close at hand on all major highways throughout India to

provide initial "first aid" to the vehicles if required.

In 1986, Eicher Motorsentered into a technical and financial collaboration with Mitsubishi MotorCorporation of Japan to manufacture the Canter range of vehicles. The

technical assistance agreement with Mitsubishi ended in March 94 aftersuccessful transfer of technology and on achieving total indigenisation withonly a few parts sourced globally.

Eicher Motors has acquired formidable expertise in designing anddeveloping commercial vehicles. It has a world-class R&D centre manned

by a team of brilliant engineers and equipped with latest Computer AidedDesign (CAD) and Computer Aided Engineering facilities like NASTRAN,FEM analysis packages. Leveraging its in-house expertise, this unit has

successfully developed a wide range of commercial vehicles to meetvarying customer needs. The product range includes Trucks : Eicher 10.50,Eicher 10.75, Eicher 10.90, Eicher 11.10, Eicher 20.16 & 30.25; Buses:Eicher Skyline, Eicher Cruiser and Eicher School Bus range of buses.Besides the basic models, it offers over 85 models of ready-to-use custom-

built vehicles for various specialized applications. Eicher Motors productshave been well accepted in the market. This is also demonstrated bysignificant sales of its commercial vehicles in export markets where thecompany competes with reputed international brands.



54/98



55/98

ASHOK LEYLAND

0%

66%

27%

7%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

25%

61%

14%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

0%

56%38%

6%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

&ANALYSIS

CABIN COMFORT LEVEL


TATA

62%

30%

0%

8%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED


56/98

62% of the tata motors customers are satisfied with the cabin comfort levelbut side by side 8% of the customer are not so much satisfied with it , whichis less in the case of M&M and Ashok Leyland which are its maincompetitors



57/98

TATA

55%30%

15%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOTSATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

31%

53%

16%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOTSATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

33%

47%

20%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

44%

25%

31%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

STABILITY

In this TATA MOTORS is leading the market followed by M&M, ASHOKLEYLAND and Eicher respectively.



58/98

TATA

49%38%

13%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

0%

53%

47%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

80%

20%

0%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

8%

75%

17%

0%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

HIGH LOAD CAPACITY

In high load capacity Ashok Leyland is ahead of Tata Motors with 80%totally satisfied which is 49% in the case of Tata motors.



59/98

TATA

0%

0%

25%

52%

23%

TOTALLY SATISFIED

SOME WHATSATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

38%

31%

31%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

0%

67%

33%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

17%

8%

75%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAINTANANCE COST



60/98

TATA

49%

13%

30%

8%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

0%

62%

38%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

67%

33%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

PROFITABILITY EICHER

0%

44%

28%

28%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

In thisTATA MOTORS is lagging behind of M&M strongly. M&M leadsthe market in case of maintenance cost

.PROFITABILITY



61/98

TATA

20%

62%

18%

0%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

0%

79%

21%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

80%

20%

0%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

0%

69%

31%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

In case of profitability 49% of tata motors customers feels that TATAMOTORS much more profitable for the business than other companies ,but8% feels that it is not so that is because of high maintenance cost.

RELIABILITY



62/98

In reliability ASHOK LEYLAND in leading the market followed by TATAMOTORS, M&M respectively



63/98

TATA

90%

10%

0%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

0%

28%

16%

56%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

0%

27%

73%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

28%

0%

72%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

AVAILABILITY OF SPARE PARTS



64/98

TATA

0%

23%

3%

74%

0%

TOTALLY SATISFIED

SOME WHATSATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & MAHINDRA

31%

40%

29%

0%

0%

TOTALLY SATISFIED

SOME WHATSATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

0%

80%

20%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

28%

58%

0%14%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

In case of availability of spare parts 90% of TATA MOTORSCUSTOMERS thinks that Tatas spare parts are available every where. Incase of its competitors these facility is not available.

AFTER SALES SERVICE



65/98

TATA

64%

25%

8%

0%

3%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

37%

38%

25%

0%

0%

TOTALLY SATISFIED

SOME WHATSATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

80%

20%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME W HAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

8%

64%

28%

0%

0%TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

IN CASE OF AFTER SALE & SERVICE TATA MOTORS IS FARBEHIND FROM THE SATISFACTION LEVEL OF THE CUSTOMERSACHIVED BY EICHER, M&M.

SATISFACTION LEVEL



66/98

TATA

37%

38%

15%

10% 0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME W HAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

MAHINDRA & M AHINDRA

6%

81%

13%

0%

0% TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

ASHOK LEYLAND

0%

33%

67%

0%

0% TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

EICHER

0%

22%

78%

0%

0%

TOTALLY SATISFIED

SOME WHAT

SATISFIED

NEUTRAL

SOME WHAT NOT

SATISFIED

TOTALLY NOT

SATISFIED

64% of TATA MOTORS customers are totally satisfied with it, 25%saysthat they are some what satisfied and 8% are neutral.

MILEAGE



67/98

TATA MOTORS leads in mileage with 37% totally satisfied followed by

M&M with 6% totally satisfied.

FINDINGS

In Jharkhand TATA MOPTORS leads the market with 92% share

in LCV sector.

Its main competitor is mahindra and mahindras 3200 di, which is

taking over TATAS 407 model. Presently it is estimated to be

holding 3-4 % of market share.

The cost of TATA MOTORS spare parts is high compared to itscompetitors .

The sale of TATA MOTORS is increasing consistently though its

market share has fallen marginally in Jharkhand.

The brand image of TATA is proving to be the driving force behind

its sales.

Organizing customer meet is quite helpful in determining thetechnical problems in the vehicles.

Experienced sales executives are leaving the company getting

attracted by high incentives offered by the competitors.



68/98

LCV volumes increased 20.3 % to 24,254 units all over India for year

ending March 2007.

The percentage of LCV in TATA MOTORS product mix has

increased marginally over passenger vehicles.

CVs Leading the pack

CV volumes grew 13% YoY in March 07 to 55,220 units. Domestic

volumes rose 13.2% YoY to 49,245 units and exports increased 11.7% YoYto 5,975 units. Among various sub-segments, M/HCV volumes rose 7.9%YoY to 30,966 units and LCVvolume increased 20.3% YoY to 24,254 units.

Winners and losers.



69/98

TAMO continued to be the market leader with 61.3% market share (up90bps YoY); however, ALL lost market share by 220bps to 27.5%. M&Mregistered a 420bps market share gain to 24.1% in LCVs.

LCV M&M GAINS M/HCV- TATA MOTORS GAINS

TAMOs total CV volumes grew 25.1% YoY to 35,078 units. Further,

domestic sales rose 12.3% YoY to 30,720 units and exports increased10.3% YoY to 4,358 units. M/HCV volumes increased 10% YoY to 19,083units domestic sales for the segment rose 8.3% YoY to 17,673 units andexports surged 36.1% YoY to 1,410 units. LCV volumes, too, rose 15.1%YoY to 13,047 units on the back of continued buoyancy in the demand forthe mini-truck ACE domestic sales of the LCV segment increased 18.8%YoY to 13,047 units and exports rose 1.1% YoY to 2,948 units.

ALLs volumes dipped 1.6% YoY to 8,444 units on the back of a 1.9%YoY decline in domestic volumes to 7,936 units even as exports rosemarginally 3.7% to 508 units. Among various segments, volumes forM/HCV goods segment declined 1.9% YoY to 6,773 units in March 07.M/HCV passenger segment volumes rose 4.9% YoY to 1,671 units.

M&Ms LCV volumes grew 45.6% YoY to 5,529 units in March 07.Further, domestic sales increased 50.4% YoY to 4,934 units and exportsrose 15.1% YoY to 595 units. M&Ms market share in the LCV segmentrose 420bps to 24.1%.



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It is clear from the above charts that the volume growth of CommercialVehicles (C.V) has increased by 13.1% from FY05 as the market share andthe volume of sale has increased consistently. So opportunity always lies forTATA MOTORS.

PRODUCT MIX OF TATA MOTORS.



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From this diagram it can be seen that the percentage of commercial vehicleshas increased in the product mix of TATA MOTORS so its C.V (M/HCV& L.C.V.) plays an important role in the process of gaining market share inthe competitive market.

Technical Specs 407 EX

ENGINE :TATA 497SP TURBO (BHARAT STAGE-II)POWER : 75 PS @ 2800 rpmTORQUE : 23mkg@ 1500-1800rpmFIP :Mechanical Rotary-MICOCLUTCH :Single plate dry friction type, 240 mm diaGEAR BOX :G18.M Synchronomesh, 5 F,1 RBRAKE :Vacuum assisted dual circuit hydraulic with

tandem master cylinder.TYRES :8.25 x 16 -16PR GVW : 5.7(SFC) 6.25(LPT)PAYLOAD(TONS) :3.6(SFC) 3.8(LPT)

FEATURE BENEFIT

CabSFC EXLPT

Enhanced Safety;Easy Maintainability

Air Filter Dry Type Less Maintenance

Lower Cost as no need to regularly changeoil

Chassis frame

C channel (180 mm) Reinforced Chassis provides highedurability

Special Anti-Corrosion treatment gives along life.



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Tyre 8.25x 16 16 PR Bigger and more rugged tyres give betteload carrying capacity and tyre life onIndian roads.Rear - Lug, Front Rib

Wheel HubsSpigotted with M16 axleshaft bolts

Higher Tyre & Rim life.

No bolt loosening even under overload

Paint Polyester Higher Initial Gloss

Longer Gloss retention - increases resale

value

EX-Deluxe

CABIN

Gap Seat

Tinted Band onWindscreen

Rear Sliding Glass

Magazine/BottlePocket Holder

For resting during waiting hours

Protects against sun glare.

Better cabin ventilation

Ample space to keep things

Driver Seat 4-way adjustable Superior Ergonomics

Gap Seat

Higher Comfort

For resting during waiting hours

Resale Value Excellent Higher Saving

Warranty 3 year / 3 lakh km Better Warranty coverage

Options

Available

Cab Chassis

Cab Load body

Cab High DeckLoad body

CowlChassis(SFC407) Wide choice to the customer

GVW 6250 (LPT) / 5700 (SFC)

Payload(kgs) 3830 / 3626 Higher load carrying capacity

Engine

4 SP Turbo (BSII)

Superior Technology

Superior Fuel Combustion, Better FueAverage



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Power

Torque

75 PS @ 2800rpm

23 mkg @ 1500-1800rpm

Better pickup and acceleration

Max torque is at lower RPM, giving bette

engine life A flat torque means less number of gea

shifts and therefore higher driver comfort

Gear boxG18.M-Six speed gearbox(5- F & 1-reverse)

More speed, less trip time, smoother ride

Technical Specs LPT 709 EX

ENGINE :TATA 497 TURBO (BHARAT STAGE-II)POWER : 90 Ps @ 2400 rpmTORQUE : 33mkg@ 1300-1600 rpmFIP :Mechanical Rotary-MICOCLUTCH : Single plate dry friction type, 280 mm diaGEAR BOX :GBS 27 Synchronomesh, 5 F,1 R BRAKE :Dual circuit full air S-Cam brake

TYRES :7.50X16,16PR GVW :7490PAYLOAD(TONS) :4.7



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Skyline Group of Institutions, Greater Noida

FEATURE BENEFIT

GVW 7490

Higher load carrying capacity

Payload(kgs) 4730

Engine497 Turbo (BSII) Superior Technology

Superior Fuel Combustion, BetterFuel Average

Power90 PS @ 2400rpm Better pickup and acceleration

33 mkg @ 1300-1500rpm

Max torque is at lower RPM, givingbetter engine life

A flat torque means less number ofgear shifts and therefore higher drivercomfort

Gear box GBS-27Synchromesh(5- forward & 1-reverse)

More speed, less trip time, smootherride

Cab SFCLPT

Enhanced Safety,EasyMaintainability

Longer Deck Length

Air Filter

Dry Type Less Maintenance

Lower Cost as no need to regularlychange oil

Chassis frame C channel(Depth-200 mm)

Reinforced Chassis provides higherdurability

Special Anti-Corrosion treatmentgives a long life.

Tyre

7.5 x 16 16PR

Bigger and more rugged tyres givebetter load carrying capacity and tyrelife on Indian roads.

Rear - Lug, Front Rib 75


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ENGINE : TATA 497 TURBO (BHARAT STAGEII)POWER : 90Ps @ 2400 rpmTORQUE : 31mkg@ 1500-2000rpmFIP :Mechanical Rotary-MICOCLUTCH :Single plate dry friction type, 280 mmdiaGEAR BOX :GBS-27 Synchronomesh, 5 F,1R BRAKE : S-Cam air Brakes with LCRV .TYRE :8.25X16 16PR GVW :9600

PAYLOAD(TONS) :6.6


ENGINE : TATA 497 TURBO (BHARAT STAGE-II)POWER : 90Ps @ 2400 rpmTORQUE :31mkg@ 1400-2000rpm

FIP : Mechanical Rotary-MICOCLUTCH :Single plate dry friction type, 310 mm diaGEAR BOX : GBS-40 Synchronomesh, 5 F,1 RBRAKE : S-Cam air Brakes.TYRES :8.25 X 20 -14 Ply - Front, 8.25 X 20 -16 Rear GVW :11900PAYLOAD(TONS) :8.3

FEATURE BENEFIT

GVW 11900

Payload 8355 Higher payload ,More revenue, More

profits

Engine 497 Turbo with Superior Fuel Combustion, better fuel



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Intercooler average

Power 90 PS @ 2800rpm Better pickup and acceleration

Torque31 mkg @ 1400-2000rpm

Max torque is at lower RPM, givingbetter engine life

A flat torque means less number of

gear shifts and therefore higher drivercomfort and more trips

Gear boxGBS 40-Five speedsynchromesh gearbox

High reliability, longer life

Smoother gearshift

Brakes

Dual Circuit Full Air SCam Brakes

Best In Class, Efficient

braking system.

Clutch 310 dia. Longer life. Higher reliability. Higher

Uptime

Chassis frameC channeldepth of 219 mm

Wider cross-section leading tostronger more durable chassis

Reinforced Chassis provides higher

durability

Special Anti-Corrosion treatment

gives a long life

Exhaust BrakesOptional for hilly routeapplications

Especially suitable for driving in hills

Tyre8.25 x 20 14PR-Front83.5x20-16 PR-Rear

Bigger and more rugged tyre will givebetter tyre life on Indian roads

Wheel Hubs Spigotted Higher Tyre & Rim life

No Bolt loosening even underoverload

Clutch 310 dia. Longer life. Higher reliability. Higher

Uptime

Chassis frame C channeldepth of 219 mm

Wider cross-section leading tostronger more durable chassis

Reinforced Chassis provides higher

durability

Special Anti-Corrosion treatment

gives a long life



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Aust BrakesOptional for hilly routeapplications

Especially suitable for driving in hills

Tyre8.25 x 20 14PR-Front83.5x20-16 PR-Rear

Bigger and more rugged tyre will givebetter tyre life on Indian roads

Wheel Hubs Spigotted

PRICES OF THE PRODUCTS.

SL PRODUCT

LINE

MODEL PRICE (Rs.)

1 SFC407 TRUCK SFC407/31 CLB EX BSII 5,16,898

2 SFC407 TRUCK SFC407/31 HD EX BSII 5,28,704

3 SFC407 TRUCK SFC407/31 CAB EX BSII 5,12,481

4 LPT 709 LPT709

EX/38WB,CLB,497TCICBSII

MECH,STR

6,52,012

5 LPT 709 LPT709

EX/38WB,CAB,497TCICBSII

MECH,STR

6,22,276

6 LPT 909 LPT 909/38CLB BSII 7,09,078

7 LPT 909 LPT 909/38CAB BSII 6,79,343

8 LPT1109 LPT1109/36CLB EXBSII 7,46,641

9 LPT1109 LPT1109/36CAB EXBSII 7,24,714

10 LPT1109 LPT1109/42CLB EXBSII 7,25,509

11 LPT1109 LPT1109/42CAB EXBSII 7,62,317



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TATA MOTORS NETWORK IN INDIA

Skyline Group of Institutions, Greater Noida

Main Dealer

Branch

DealerTelco

Authorised Service Station

79


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DETAILS ABOUT JHARKHAND



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SALES PROMOTIONS

The Promotion element of marketing mix communicates the customers

for their solution. Hence, promotion to the design and manage themarketing mix element to inform perused and remind current and

potential customer. There are five forms of promotion

Personal selling

Adverting

Sales Promotion

Public Relations

Publicity

In our survey I have found that the tata motors mainly focuses and put

stress more on sales promotion, public relation than the rests.

1. Tata motors provides discounts such as in the month of march 2007

it has provided the following discount

Tata 407 --- cash discount Rs. 50,000

Tata 709 --- cash discount Rs. 20,000 Tata 909 --- cash discount Rs. 20,000

Tata 1109 --- cash discount Rs. 20,000

And so on

The amount of discount may change from time to time.

2. Various financing schemes are run by tata motors from time to time

in collaborations with various financial institutions to provide easy and

flexible financing facility to its customers.

3. Free after sales service.

4. Various exchange offers are provided to the public, in which people

can exchange there old vehicles with brand new ones



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5. Various camps are also conducted to provide free demonstrations to

the public

6. TMF offers range of refinance products to suit the need of itscustomers.

Available for vehicles from 0-8 years of age for loan duration of

12 to 48 months. All this with TMF advantages of faster loan

disbursals, attractive interest rates and flexible terms.

REFINANCING is available for:

1) SALARIED INDIVIDUALS

Eligibility Criteria:-

- Minimum age of Applicant: 21 years- Maximum age of Applicant at loan maturity: 60 years- Minimum employment: 1 year from date of joining

Documents required:-

Proof of Identity:-Passport , Photo Credit Card, PAN Card, Voters Id car, driving license,Employee ID issued by Government of India, PSU, Limited companies,Local Panchayat ID card, Notary certification with Photograph.

Income Proof: -

Latest salary slip with form 16.

Address Proof: -

Lease Agreement, Ration card, Driving license, House Tax Challan,

Housing Society Bill, Voters card, passport, telephone bill, electricity bill,Water Tax Challan, Telephone Bill / WLL Connection, Credit CardStatement, Post Paid mobile bills (2 bills required bill of the lastcompleted month and of 6 month before the last completed month), PANCard, Bank Certification / Statement duly certified by the bank in original,Gas Connection Bill.



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2.) SELF EMPLOYED -

Eligibility Criteria:-

- Minimum age of Applicant: 21 years

- Maximum age of Applicant at loan maturity: 70 years

- Minimum employment: At least 2 years in business

Documents required:-

Proof of Identity:-

Passport, PAN Card, Voters Id car, driving licence,Latest Sales taxassessment order, Sale tax registration certificate.

Income Proof: -

Latest ITR.

Address Proof: -

The documents collected towards identity proof to reflect the currentaddress of the concern/firm.

3.) PARTNERSHIP FIRMS -

Eligibility Criteria/Documents required:-

Proof of Identity:-

Partnership deed, Shop & Establishment Act certificate, Latest Sales taxassessment order, Sale tax registration certificate.Income Proof: -Audited balance sheet, Profit & loss Account for latest two years and thelatest 2 years IT returns of the company.



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Address Proof: -

The documents collected towards identity proof to reflect the current

address of the concern/firm.

4.) PARTNERSHIP FIRMS -

Eligibility Criteria/Documents required:-

Proof of Identity:-

MOA & AOA (with registration certificate).

Income Proof: -

Audited balance sheet, Profit & loss Account for latest two years and thelatest 2 years IT returns of the company.

Address Proof: -

The documents collected towards identity proof to reflect the currentaddress of the concern/firm.

SWOT ANALYSIS



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(A THEORETICAL ASPECT )

This is the technique that plays a very crucial role at the time of making

policy and strategy regarding a particular field. Almost, all the companiesadopt this technique and review it time to time for making their strategiesmore effective so that they achieve their smoothly.

Actually, the term SWOTconsists of four letters and all the letters represent its own attributes asfollows:-

S (Strength): this is the present the most strongest and favorablecondition for the smoothly running of business and almost most of the

purchasers buy its product by considering these strengths.

W (Weakness):this is the attribute which require more attention forcorrection and it deviate the purchasers from buying the products.

O (Opportunity): A marketing opportunity is an area of buyer need inwhich a company can perform profitably. In other words, it presents the

plate form for expanding the business.

T (threats): An environmental threat is a challenge posed by anunfavorable trend or sales or profit.

(Opportunity and Threat Analysis)

In general, a business unit has to monitor keyenvironment forces (demographic economic, technological, political-legaland social-cultural)and significant microenvironment actors (customer,competitors,distributors,suppliers) that affect its ability to earn profits.The

business unit should set up a marketing intelligence system to track trends

and important developments.For each trend or development, managementneeds to identify the associated opportunitiesandthreat(Strenths/Weaknesses Analysis)

It is one thing to discernattractive opportunities and another to have the competencies to succeed inthese opportunities. Each business needs to evaluate its internal strengthsand weaknesses periodically. It can do so by using a form like the one



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shown management-or outside consultant- competencies and rates eachfactor as a major strength, minor strength, neutral factor, minor weakness,or major weakness.

Now we want to analyze the SWOT in context of TML as follow:-

Strengths:- 1. Good availability of parts everywhere. It means spare parts of TMLavailable in any place.

2. Availability of service center in large number by which transportersdont have any problem.

3. Its engine consumes less energy so only 12 volt battery is enough .

4. Good resale value of TATAS vehicle so they purchase these vehicle andoriginal parts they used in these vehicles.

5. Knowledge about parts and engines is easier for mechanics of TATASvehicles.

6. All the parts are available in TATAS retailer but not available in Ashok

Leylands retailer.

7. Quality of motor parts no doubt is very good.

8. Always prefer original parts because you never want to send your child ininferior school.

Weakness:-

1. High price of part about 10% higher price to other competitor.

2. There are various companies which make duplicate of TATAS parts ,other than quality every thing is as same as you confused that it is originalor not. For e.g. Alfas gear box is very confuging.



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3. Main suppliers of Tata motors parts are its main competitors.

4. Boring is requiring up to 5 years in engine so, transporters requireimprovement in engine quality.

5. More consumption of oil. Further it requires some improvement in partsso that engine may improve in quality and service providing .

6. some times old parts of Tatas vehicle are also resale by some companiesin new pack by some technical works.

7. Not very good carrying power of in single gear of Tatas vehicle.

8. Even you want to purchase the original parts but duplicates are sosimilar; you are cheated by retailer in new places.

Opportunity:-

1. The best performing company will be the one that can generate thegreatest customer value and sustain it over time.

2. There is big market or expanding the business of motor parts.

3. There are not such the competitors who have monopoly in any productline and at most all the company in growing stage that open the door forexpanding the market share of TML spare parts.

Threats:-

1. Threat of intense segment rivalry:- These conditions will lead to frequent

price wars , advertising battles, new products introductions and will make itexpansive to complete .

2. Threat of new entrants:- A segments attractiveness varies with the heightof the entry and exist barriers . The most attractive segment is one in whichentry barriers are high and exit barriers are low. Few new firms can enterthe industry , and poor performing firms can easily exit , when both entry



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and exit barriers are high , profit potential is high , but firms face more riskbecause poorer performing firms stay in and fight it out . When entry andexit barriers are low, firms easily enter and leave the industry, and thereturns are stable and low.

1. Treats of substitute products:- A segment is unattractive when there areactual or potential substitutes for the product. Competitors are changedaccordingly with the motor parts vary. So, it is a tough problem to identifysome major competitors for whole products and make policy and strategy toconsider their strategy.

2. Threat of buyers growing bargaining power:- A segment is unattractive ifthe buyers possess strong or growing bargaining power . Buyers will try toforce price down, demand more quality or services, and set competitors

against each other, all the expanses of seller profitability.3. Threat of suppliers growing bargaining power- A segment is unattractiveis the companys suppliers are able to raise price or reduce quantity suppliedthe best defenses are to build win win relations with suppliers or usemultiple supply sources.

Pricing issues

The price of any product is the key factor that affects its sales and it is alsotrue in the spare parts industry. We have got the actual information from themarket regarding the importance of price and its affect on the mind of thecustomer while purchasing the spare parts. In any business, every thing runson the profit margins. The same happens in the transport line also. Every

player wants to earn profit. The benefits of the company, distributor