Synopsison

Sales and distribution for Tata Motors

in view of

Customer Satisfaction

Submitted By

Name: Biplab Ganguly

Roll No: DM13151023

Batch : 2013-15

Industry Guide (12 TNR Bold) Faculty Guide (12 TNR Bold)

Name: Name:

Designation: Designation:

Company Name:

ACCURATE INSTITUTE OF MANAGEMENT & TECHNOLOGY, PLOT NO. 49, KNOWLEDGE PARK 3, GREATER NOIDA- 201306 (UP)

INTRODUCTION

1.1 Objectives

To study the distribution channel of Bhandari Automobiles for Tata motors.

To conduct sales of cars of Tata Motors in Bhandari Automobiles.

To analyze the customer's satisfaction by conducting a research.

1.2 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY IN INDIA

In the fast moving world with the biggest countries with huge economies India has managed to be

the eleventh in the world for annual production of 2 million units approximately. This sector in India

is growing at a very fast rate and it has crossed China in terms of selling the Units. In the matter of

population India is the second largest country in the world with a population of 1.1 billion. In this

respect it is just next to China. But it has a very small land mass as compared to China. India has

become an attraction for car manufacturers around the Globe as a graph of its ownership of car i.e. 7

per 1000 people.

Automobile industry in India comprises of 13 million direct and indirect employees. It

contributes 3.1% of India’s GDP (nominal) and the valuation of the industry is about US$ 34

billion. India's motorcycle market with an annual sale of 5 million units is the second largest

around the globe. India has Fourth largest commercial vehicle market, Eleventh largest

passenger car market, Fifth largest bus & truck market (by volume) around the globe.

With this growing pace India by 2016 is expected to be the seventh largest automobile market and

by 2030 worlds 3rd largest behind US & China.

Late 1890’s is the time when Automobile was introduced in India but it came into existence

only after the independence in 1947. Until 1980’s Hindustan Motors and some small

manufacturers Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors

held an oligopoly till the time when Maruti Udyog Suzuki came into existance after the death

of the great Indian politician Sanjay Gandhi who championed the need for a "people's car". It

quickly gained over 50% of the market share. The Maruti 800 became popular because of its

low price, high fuel efficiency, reliability and modern features relative to its competition at

the time.

From the decades in the Indian automotive industry there were only few vehicle models but

then also there is a good lead time to get a car after the booking. So with changing economy,

competition, and urge to grow big we are here with more than 100 Models and every moth

with a new model to offer. Keeping in mind the comfort of the people and their choice the

models are prepared. Performance of vehicle is increasing day by day, its fuel efficiency and

reliability has no match with others around the globe.

Inspite of having manufacturing of major foreign automakers based in India our Indian

Domestic Automobile Companies are leading in the Market. Tata Motors is the largest

commercial vehicle company, Maruti Suzuki is the largest passenger vehicle company &

Hero Honda is the largest motorcycle company in India. Mahindra & Mahindra, Ashok

Leyland and Bajaj Auto are some more leading automobile manufacturers.

Major Companies

List of automobile manufacturers in India

Indian companies

1.Force Motors2.Ashok Leyland

3.Hindustan Motors

Hindustan Ambassador

4.Mahindra & Mahindra Limited

Mahindra Classic

5.Maruti Suzuki

Multi-national companies

1.BMW

2.Fiat

3.Ford Motors

4.General Motors

5.Honda

6.Hyundai

7.Renault-Nissan8.Mercedes-Benz

9.Mitsubishi Motors

10.Škoda

11.Toyota

1.3 COMPANY PROFILE

a. Review of literature on the company

Tata Motors

Tata Motors Limited (formerly known as TELCO (TATA Engineering and Locomotive

Company), (NYSE: TTM) - is India's largest passenger automobile and commercial vehicle

manufacturing company. It is a part of the Tata Group, and has its headquarters in Mumbai,

Maharashtra.

Tata Motors was established in 1945, when the company began making trains. Tata Motors

was first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during 2001-2006

which was among the top 10 corporate profits in India. In 2004 it also bought Daewoo's truck

manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In

March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in

the company. On 10 January 2008, Tata Motors launched their much awaited Tata Nano,

noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati Maidan, Delhi.

b. Historical analysis

Background

Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is

currently headed by Ratan Tata.

The company has the workforce of 24000 employees working in its four plants and other

regional and zonal offices across the country.

Tata Motors' range of passenger cars is still not comprehensive by international standards. In

commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic

heavy commercial market. The company is trying to modernise its range of commercial

vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML

Financial Services (TMLFS), in September 2006.

Time line and milestones

Tata Motors launches its first truck in collaboration with Mercedes-Benz

1960-1986

Tata Motors is the 2nd largest commercial vehicle maker in India. World over it is the world's

fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in

1960 with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in

Pune. It took five years for the company to begin the commercial production of heavy

commercial Vehicles. Considering the road infrastructure of the country which does not

support heavy vehicles the company adopted a route for light commercial vehicles (LCV). It

came out with its first LCV, Tata 407, in 1986.

1987-1996

Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company

adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the

manufacture of high horsepower and emission friendly diesel engines. It was an effort made

to reduce the pollution in the existing Tata engines and to produce more environmentally

friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata

Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines.

1997-2006

In 2000, it launched compressed natural gas (CNG) buses and also filled the product line gap

through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and

is useful for medium tonnage loads. Post 2000, the company introduced a variety of new

models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and

also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to

the customers' requiring one and same vehicle for commercial as well as personal use.

Tata Novus

In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons

behind the acquisition were:

Company’s global plans to reduce domestic exposure The domestic commercial vehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata

Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light

commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the

company are at the mercy of the structural economic factors, it is increasingly looking at the

international markets. The company plans to diversify into various markets across the world

in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus

from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of

TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was

mainly to cater to the international market and also to cater to the domestic market where a major

improvement in the Road infrastructure was done through the National Highway Development

Project On its 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).

Joint ventures

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired

21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its

high-end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based

global leader in bus body building. This joint venture is to manufacture and assemble fully-

built buses and coaches targeted at developing mass rapid transportation systems. The joint

venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and

Marcopolo will provide know-how in processes and systems for bodybuilding and bus body

design.

A venture with British carmaker MG Rover saw the launch of the CityRover in 2003. This

car was based on the Tata Indica and built alongside it in India, but sales were not strong and

production finished in April 2005 when MG Rover went bankrupt. MG Rover was purchased

by Nanjing Automobile of China three months later, but when car production resumed in

2007, the City Rover was not part of the production plans.

Tata Ace

The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed

sub-one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that

Ace had changed the dynamics of the light commercial vehicle (LCV) market in India by

creating a new market segment termed the SCV segment. Ace rapidly emerged as the first

choice for transporters and single truck owners for city and rural transport. By October 2005,

since the launch of Ace, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units

due to the rising demand for Ace. The Ace was built with a load body produced by Autoline

Industries. [3] By 2005, Autoline was producing 300 load bodies per day for Tata Motors.

Autoline

In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a

Briggs & Stratton emissions test) to express any formal interest in the turbulence-boosting

cylinder head grooves invented by Somender Singh (Mysore).

2007

Tata Indigo

Tata Motors, through its joint venture with Fiat, gained access to Fiat’s diesel engine

technology and is likely to gain access to the latter’s strong overseas distribution network for

its passenger cars. Tata Motors is looking to extend this relationship to other segments like

pick-ups and MHCVs. The company also plans to expand its global footprint with the launch

of ‘Global Truck’ and ‘Global Pick-up’ in domestic and international markets by 2007-08.

Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa,

Turkey and Saudi Arabia. The launch of the global truck will mark the entry of the company

into developed markets like Europe and the United States. The project was initially a

collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but

later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync with the

needs of sophisticated European customers. The company has formed a joint venture with

Thailand’s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will

hold a 70% stake. The joint venture will set up a plant with capacity to manufacture pick-ups

a year and will sell them in Thailand, the second largest pick-up market in the world, and in

other regional markets. The joint venture product is likely to be a part of Tata Motors’

‘Global pick-up’ plans.

2008 onwards

On January 3rd, 2008, The Hindu Business Line reported that Ford Motor Company (US)

named Tata Motors the "preferred bidder for Ford's British marquees Jaguar and Land

Rover ... but a final decision for the sale was yet to be taken".

Auto policy of Government of India (GOI) envisions to establish a globally competitive

automotive industry in India and to double its contribution to the economy by 2010. GOI

policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air

quality. The terminal life policy for commercial vehicles and move toward international

taxing policies linked to age of vehicles, are steps in the right direction which will lead to

increased sales for Tata motors Commercial vehicle division.

Effect of Government Policy on Tata Motors CV Division Commercial Vehicles segment

sector has been at the forefront of the strong showing by the automotive industry over the

past few years. Following factors have led to growth in sales:

The cut in excise duty that enabled manufacturers like Tata Motors to reduce prices

The attractive financing offers and freebies enabled by low interest rate policies by

Government

the need to transport higher volumes of agricultural and industrial goods

Low interest rates

Tata Xover

New auto policy considered by Government of India last announced an automobile policy in

December 1997. The policy required majority-owned subsidiaries of foreign car firms to

invest at least $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 $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

Global competition

Tata Motors have some distinct advantages in comparison to other MNC competitors. There

is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales

in developed economies. Tata motors have extensive backward and forward linkages and it is

strongly interwoven with machine tools and metals sectors. India is an excellent source for IT

based engineering solution for products & process Integration. There are strong supporting

industries i.e. auto component industry has world class capabilities. There is huge demand in

domestic markets due to infrastructure developments and Tata Motors is able to leverage its

knowledge of Indian market. There are favorable Government polices and regulations to

boost the auto industry i.e. Incentive for R&D.

c. SWOT

SWOT Analysis - Tata Motors Limited

The company began in 1945 and has produced more than 4 million vehicles. Tata Motors

Limited is the largest car producer in India. It manufactures commercial and passenger

vehicles, and employs in excess of 23,000 people.

Strengths

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 programme 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 2006. This

has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge

exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies

have an agreement to build a pick-up targeted at Central and South America.

Weaknesses

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 brand? Maybe not, but

they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths).

Opportunities

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.

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for

around USD $16 million.

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!

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 is 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%.

Threats

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 globalises 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 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 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 aluminium 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.

Distribution Strategy/ Channels of the Tata Motors

Distribution of the product

Distribution Method

Distribution always takes place through a cycle but it is different with the products. There are

several steps which complete the entire cycle. It usually starts with manufacturer then to distributor

and then finally reaches in the hand of consumer. This is the main cycle which is used globally.

Retail may takes place before it reaches to the consumer.

MANUFACTURER – DISTRIBUTOR – CONSUMER

1st distribution channel

1.   In this type of channel the company uses its sales representatives to deal with the dealers

directly. The dealers place the order through the sales representatives who visit them

periodically, and the products are delivered directly from the company.

Some companies appoint Direct Dealers who act as their Franchisee Outlets or their

Exclusive showrooms.

2nd distribution channel

 2.   In this channel of distribution the company appoints distributors on the basis of District/

Population /No of Dealers to be handled by one distributor. The area of operation and its

potential is also taken into consideration.

Some of the companies make the distributor totally responsible from appointing the dealers to

providing after sales service.

3rd distribution channel

3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The

company appoints distributors to deal with small dealers who order small quantities. With the

dealers who have good potential and sales the company deals directly.

4th distribution channel

 

4. In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F

agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the

Distributors and the Direct Dealers at the same rates.

TATA MOTORS

S y s t e m I n t e g r a t o r s

D i s t r i b u t o r s

CUSTOMER

R e s e l l e r s

Own sales force

V O L U M ER E S E L LErR

Value Rese l le rs

DISTRIBUTION NETWORK TATA MOTORS

TIER I

TIER I

CHANNEL STRUCTURE Scenario 1 Scenario 2

Company’s warehouse Customer

(Placing

Order (Direct billing)

Directly)

Customer

To save the consumer from paying extra amount in the form of taxes and duties a consumer can

directly place an order with the Tata Motors warehouse is a pictorial representation of the same,

also there maybe a case where all the 4 or any one of the national Dealers have warehouses in

Singapore and consumer places order with these distributor then in that case these distributors will

place the order to Tata Motors which will have direct billing with the distributors and distributors

will have direct billing with the consumer.

How do the finished products of your company move from your end to

consumer’s end?

In this distribution network a customer with the small requirement reaches the reseller who buys

the product from the big distributors like Ingram, Redington,Tech pacific and iris.

How the finished products moves from Tata Motors end to consumer’s

end:

CONSUMER RESELLER

CONSUMER RESELLER

Consumer

Retailer

Distributer

C&F

Tata MotorOrganization

In this distribution network a customer with the small requirement reaches the reseller who buys

the product from the big distributors like Ingram, Redington, Tech pacific and iris.

This model is drawn to show that for named accounts or big business opportunities it is the

companies’ own sales force and system integrators (value resellers), which hunts down the

prospective business.

Distribution ChannelsChannel Structure

1. Outside Pune

VALUE

RESELLER

SALES FORCE

Tata MotorsBUSINESS

2. There are 17 C&F and 50 distributors who directly deal with Tata Motor.

Functions performed by different channel member

1. The main functions of different channel members are to supply goods, to achieve targets and to

increase sales.

2. One of the main functions of C&F is to achieve the targets assigned to them. They are responsible

for all the activities of their areas.

3. The sale of other goods including the sale of its entire outlet is around 150 crores.

Selection of Channel members: -

Channels members are selected if the following facilities are available:-

1. Godown Facilities

2. Experience sale persons.

3. Van, truck, three-wheelers for transportation.

4. Registered office.

5. Proper computer facility of maintaining accounts.

6. Financially strong.

Financial terms and conditions

Tata Motor takes the full payment in advance from the distributor and C&F. Most probably it takes

Cheque if it is local payment and Demand Drafts if it is central payment. From some distributors Tata

Motor also take cash also but always try to avoid it. No credit facilities are given to any distributor or

C&F.

Tata Motor keep some blank cheques from some distributor and C&F even before taking the order

and use the cheque after delivering the goods.

Distributor and C&F mostly sale goods on credit basis which varies from one to another.

Tata Motor give 6-7% discount to C&F and distributor. No margin is given to them. But they give

margin of 10-12% to retailers.

Tata Motor is responsible if any goods spoiled or leak on the way in its transport.

Tata Motor also give 1-2% discount that takes responsibility of spoiled goods. Mainly these options

are given to those who are very far from Raipur and occurred heavy expense of transport to return

back the goods.

To promote sale Tata Motor give extra discount of 2-3 % where the sale is low.

Order processing

Sale persons of C&F and distributors go to the retailers of their areas and bring the order daily. After

that they give order in the Corporate Office of Tata Motor in Raipur to the general manager. From

corporate office general manager give order in the factory.

the order is ready to deliver and confirming from the corporate office, the goods are delivered in the

trucks.

Order within Raipur and the places near Raipur delivered within 24 hours.

Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours.

Every distributor and C&F has a fixed day in a week to give order.

Warehousing

Tata Motor has its own warehouse, which is manage by its own staff. The order of Tata Motor is

delivered by truck. Tata Motors pay expenses for transportation from which the Tata Motor deals

directly.

Sales functioning: -

Factors taken into account while assigning targets and territories

Population of the area.

Income of the consumers in that area.

Sales during festival seasons.

Area cover.

Targets

Targets are decided by the owner of the Tata Motor for every distributor and C&F. Every year targets

are increased by 10-15%. All the Distributor and C&F have to achieve minimum 90 % of its targets

monthly and remaining has to adjust with the next month target. There is a meeting held every

month of C&F and distributors with the General Manager of Tata Motor where they find reasons for

not achieving the targets and how they overcome by this problem. In this meeting extra benefits are

also given for achieving the targets.

Responsibilities of the sales person

To supply goods.

To make new customers.

To bring the order from retailers of their area.

To promote Tata Motor Tata Car.

To report about the sale.

Performance Appraisal

The manager on the targets basis checks the performance of the sales person. The performance

appraisal is check on monthly basis. It is check as regard to achieve target. The sales persons give

daily report to the manager and on that basis the performance is checked and new target is

assigned.

Functions performed by different channel member

The main functions of different channel members are to supply goods and give monthly

report in the organization.

The channel members also supply goods in the outlets of the Tata Motor India.

They frequently visit outlet of Tata Motor India within Raipur and outside Raipur to

check the sales and whether the target is achieving or not.

They also promote Tata Motor India Tata Car.

The main role of showroom is to supply goods to the area that are assign to them.

They are responsible for achieving the target assign to them.

Selection of Channel members: -

Channels members are selected if the following facilities are available:-

Financially strong.

Transport facilities.

Registered office.

Godown Facilities.

Selection of channel member for the Franchise

Asked around 1.5 crore for franchise

Space required – 12000 Sq feet

Preference given in Mall

Transport Facilities

Godown available.

Financial terms: -

In Raipur the Sales of Tata Motor India is done mainly on credit basis. The credit time is not

same for the entire distributor. The Finance department of the company decides the credit

period of the Distributor after consulting by sale manager.

Outside Raipur the payment is received at the time of delivered of goods. Maximum 15 days

allowed paying the payment.

Extra benefit of 1-2% given to distributors who have achieved their annual target.

Order processing

From the main office the order is passed in the factory where production manager note

down the order and report back to the office when the order is ready.

Order within Raipur and the places delivered within 24 hours.

Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours.

Warehousing:-

Tata Motor India has its own warehouse, which is manage by its own staff.

Sales Distributions

Factors taken into account while assigning targets and territories

Targets achieve last year.

Area covered by the Distributors.

Sale made during Festivals seasons.

Locations (for outlets).

Targets

The sales manager decides targets of the distributors. There is an increase in target of 5- 10%

annually both for distributor. The targets of both are checked quarterly by the sales manager and if

the target are not seen to be achieve then Tata Motor India sent their own sales person and try to

increase the sales.

Responsibilities of the sales person

To supply goods to distributors and in outlets.

To make new customers.

To bring the order from retailers of their area.

To promote Tata Motor India Tata Car.

To report about the sale and steps taken to increase the sale.

Performance Appraisal

The sales manager checks the performance of the sales person on target basis and the area covered.

The performance appraisal is check on quarterly basis and on that basis there Sales Manager assigns

new target.

Research Methodology

3.1 Types of research

Based on the objectives of the study, there are two types of Research:

Exploratory Research- Exploratory research is conducted when one is seeking insights into

the general nature of a situation, the possible decision alternatives, and the relevant

variables that need to be considered. While conducting my study, I used exploratory

research, which was flexible and was aimed at identifying all the attributes that provides

satisfaction to customers before and after buying a vehicle. I undertook an intensive review

of the automobile industry in India, and screened some issues which I as a researcher felt

needed more clarification or study.

Descriptive research- My exploratory research conducted brought out a host of factors

which affect the customer buying attitude. These factors were then filtered to form a set of

the most important alternatives, which might affect a consumer’s and a retailer’s decision

regarding the purchase of vehicle and which brand they prefer. The purpose was to find an

accurate snapshot of the market environment of automobiles.

3.2 Data collection procedure used in my research :

Pilot Study

After constructing the questionnaire, the pilot survey was conducted among 6 individuals from the

sales force of the company to find out the errors, if any.

Questionnaire

The questionnaire method has come to the more widely used and economical means of data

collection. The common factor in all varieties of the questionnaire method is its reliance on verbal

responses to questions, written or oral. The researchers found it essential to make sure the

questionnaire was easy to read and understand to all spectrums of people in the sample. It was also

important as researchers to respect the samples time and energy hence the questionnaire was

designed in such a way, that its administration would not exceed 4-5 minutes. The questionnaires

were personally administered. As far as possible, the questionnaires were filled by me and not given

to the respondents.

Field work

Field work is a general descriptive term for the collection of raw data direct from the consumers, as

opposed to secondary research. It plays an important role in collecting the data. My sample size was

157. In my research, I had to take the feedback from the existing customers of Tata Motors to know

about their satisfaction level and the areas in which the company was lagging.

Some important points which I kept in mind while doing the fieldwork-

Making the respondents comfortable before questioning them by introducing

ourselves as students of AIMT and ensuring the respondent that all information

collected is only for academic purpose and will be kept absolutely confidential.

Ensuring that we fill the questionnaires ourselves.

Not leading a person into any preconceived notion.

Not influencing the respondents’ answers in any way/form.

Using simple language, so that the technical language does not intimidate the

respondent.

3.3 Data collection techniques

Primary data

Pilot Study

Questionnaire

Secondary data

It refers to the already existing data. I collected them by following methods –

Internet

Books

Published Articles

Journals

Newspaper Articles

Data Interpretation Tools

Following software’s has been used during analysis and compiling of data.

SPSS Software

Microsoft Excel

Microsoft Word