APROJECT REPORT

ON

“TATA MOTORS”

IN CONTEXT WITH “SAIRAM AUTOMOBILES”BHILAI (C.G)

Submitted in the partial fulfillment for the award of degree OF

BACHELOR OF BUSSINESS ADMINISTRATIONOf

Pt.Ravishankar Shukla University, Raipur (C.G)

Session 2009-2010

Submitted byGUIDED BY

ABHISHEK KUMAR MR.SANDEEPJASHWANT BBA 6TH SEM

HOD (MANAGEMENT)

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DEPARTMENT OF MANAGEMENTSHRI SHANKARACHARYA MAHAVIDYALAYA

SECTOR-6 BHILAI (C.G)

Declaration

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

Place: ABHISHEK KUMAR

BBA 6TH SEMDate:

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Certificate This is to certify that Abhishek kumar a student of

B.B.A sixth semester at our institute under my guidance and supervision he had carried out the

research project under title

“Customer satisfaction &buying behavior”

This research report is the original one.

Project guide PRINCIPAL

(H.O.D management)

Place:

Date:

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AcknowledgementPerhaps the most awaited moment of any endeavor in its successful competition of their project report cases study having worked on her project for the whole academic session. I would like to express my sincere gratitude to all those who made it possible.

Firstly I am heartily thankful to my guide Mr. Sandeep Jashwant (H.O.D) of the B.B.A department under whose able guidance. I had the privilege to work and who guided at every stage.

I take this opportunity to express my sincere gratitude to our principle for being guide of philosopher throughout B.B.A program.

I shall be failing in my duty if I don’t express my deep sense of gratitude to all my friends and the relatives who have share their valuable time and helped me directly or indirectly in the preparation of their project .

At the end last but not the least; I would like to thanks the other staff and non staff member of this college.

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ABISHEK KUMAR BBA 6TH SEM

Preface

The topic chosen by me for my project is “customer satisfaction & buying behavior” In reference to Sairam automobiles. At present Tata is market leader in the Indian market in four wheeler segment.

Today there are various companies coming in Indian and these certainly will exist a cutthroat competition in these field. I have chosen a Tata motors as a topic essence of my project .today four wheeler consumer due to new manufacturing entrant has started getting a wide choice while buying one these gave to considered the facility provided by the four wheeler the price ,mileage , maintenance and service etc. while buying a four wheeler

A normal customer is quit puzzled and faces for an uneven some time huge problems in deciding which vehicle to buy. I

realized the problem and decide to take these up as the challenge and provide answer to as the requirement of The

Tata motors.

INDEX

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Page no:Chapter -1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Chapter-6

Chapter-7

Introduction Historical back ground Current scenario Company profile Products of company Marketing strategy Current facts Outlook of industry Global operationsConsumer buying behavior Consumer buying decision process Characteristics of buying behaviorProblem definition Scope of study Limitation of study Object of studyCustomer satisfaction Questionnaire Research methodology Findings and suggestion SWOT Analysis of Tata motor

8-14

15-20

21-24

25-27

28-32

33-35

36-50

51-5253-59

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Chapter-8Chapter-9

Chapter-10

Future of automobile in economy June 2009 domestic sales report Inflation effect on car market Bibliography

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

India eyes 25 million automotive jobs. India's GDP is set to double over the next decade

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In percentage terms, the automotive industry's contribution should also double.

In dollar terms, the sector's contribution is set to quadruple to some $145bn

With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.

Historical back ground

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

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Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

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FOUNDATION - The seeds of what would mature and become today's Tata group were laid long years before India became independent.

CONSOLIDATION - The Tata group ventured into new areas and built on the foundations, in spite of the restraints imposed by a controlled economy.

LIBRILISATION -The Indian economy unleashed a period of remarkable growth for the Tata group, in India and worldwide.

FIVE CORE VALUES OF TATA

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

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

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Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around 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-today work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

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

Current Scenario

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The growth of the Indian middle class along with the growth of the economy over the past few years has attracted global auto majors to the Indian market. Moreover, India provides trained manpower at competitive costs making India a favored global manufacturing hub. The attractiveness of the Indian markets on one hand and the stagnation of the auto sector in markets such as

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Europe, US and Japan on the other have resulted in shifting of new capacities and flow of capital to the Indian automobile industry. According to the International Yearbook of Industrial Statistics 2008 released by United Nations Industrial Development Organization (UNIDO), India ranks 12th in the list of the world’s top 15 automakers.

GENERAL OVERVIEW

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

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Tata motors

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

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also has a strong auto finance operation, Tata Motors Finance for supporting customers in purchasing Tata Motors vehicles

Company profile

The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top10 wealth creators in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India.Tata motor’s passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2005-2009, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2008from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called “A” share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores)

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Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”.

As TATA MOTORS is regarded as one of the best fuel efficient cars. Hence I conducted a study on the consumer perception about small cars. Firstly, I took three brands of small cars; Zen estilo,Indica and Santro for a comparative study of small car segment.Later I went through the process of filling the questionnaires, to know exactly what the customer’s of small cars perceived about their cars. Tata motors were established on September 1, 1945, originally for the manufacture of Steam Locomotives at

Jamshedpur. All the cars taken for the sample showed that the consumers perceived them as almost same in all the attributes like safety, comfort and luxury. But, at the end the research was limited due to small sample size, small sample area and time constraints.

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TELCO (TATA Engineering and Locomotive Company) Multinational Corporation. Headquarters in Mumbai. India's largest passenger automobile and

commercial vehicle manufacturing company. World's 19th largest automaker. Sales: 19,654.41cr. Stock price: Rs. 347

In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It had also developed the capability of designing, testing and manufacturing such vehicles.

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Leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments.

With the Launch of Tata Indica, a Euro 2 compliant vehicle is the country’s first indigenously designed, developed and manufactured passenger car.

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

Products of TATA Motors

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[1] Passenger cars and utility vehicles

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[2]Commercial vehicles

[3] Military vehicles

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[4] Concept vehicles

2000 Aria Roadster2001 Aria Coupe2002 Tata Indica2002 Tata Indica2004 Tata Indigo Advent2005 Tata Xover2006 Tata Cliffrider2007 Tata Elegante2009 Tata Prima

MARKETING STRATEGIES

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TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it “The People’s Car”. It’s a sweet looking small car, just enough to take four people around the city. 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked.

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

The introduction of the Nano received media attention due to its targeted low price. The car is expected to boost the Indian economy, create

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entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to mass manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide.Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasoline model.The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government.

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Currents facts

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

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

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

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

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OUTLOOK OF INDUSTRY

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

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GLOBAL OPERATIONSTata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the company. Hispano’s presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of

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2009. In 2006, it formed a joint venture with the Brazil-based Marco polo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh

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investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively.

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Consumer Buying Decision Process

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There are following five stages in consumer buying decision Process.

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

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

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

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

5. Post Purchase Behavior:-After purchase the product, the consumer will experience the same level of product. The Marketer’s job not end when the product is buying must monitor

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post-purchase satisfaction, post-purchase action, post-purchase use and disposal.

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

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

Post-Purchase Use or Disposal:-The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close,

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the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

Characteristic of Buyer Behaviors

The chief characteristics of the buyer’s behaviors are asFollow:-

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

(2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands.

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(3) Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot.

(4) The individuals specific behaviors in the market place is affected by internal factor, such as need , motives, perception, and attitudes, as well as by external of environment influences such as the family social groups, culture, economics and business influences.

PROBLEM DEFINATION

PROBLEM DEFINATION

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SCOPE OF STUDY

OBJECTIVE OF STUDY

LIMITATIONS OF STUDY

PROBLEM DEFINATION

Consumer says something and does something. There are many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of customer on

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whether, what, how, and for whom to purchase the CAR.Therefore, research is required to measure present consumer buying behavior at the purchase of TATA cars. So the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the cars.

SCOPE OF STUDY

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

(2) It also analysis the benefits accruing to the company as a result of those service.

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

Limitations of study

(1) When the buyers are busy we can’t get accurate data from them.

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(2) According to the time limit of our project we can cover only the some area.

(3) During survey some respondents may not give answer in proper manner.

OBJECTIVES OF STUDY

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

(2) To know consumer behavior for purchase of four wheeler.

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Questionnaire Questionnaire is a source of Primary Data.

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It is a simple way to collect data from general public Multiple choice questions were given to the

respondents and they were asked to fill their opinion. The data was then analyzed and inferences were

drawn on that basis.

Sample of a questionnaire

1. WHAT IS YOUR SALARY? 1 LAC 1 LAKH -3 LAKH 3LAKH-5LAKH 5LAKH

2. WHICH VEHICLE DO YOU OWN? ______________________________________________________________________________________

3. DID YOU RIDE SOME OTHER VEHICLE BEFORE THIS? YES NO

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

5. WHICH IS THE MOST ESSENTIAL THING YOU PREFER WHILE BYING VEHICLE? PRICE MILEAGE POWER STEERING OTHERS

6. DOES TV AD APPEAL YOU? YES NO

7. DO YOU LIKE TV PROGRAMMES ON CAR? YES NO

8. DOES BRAND VALUE AFFECT YOUR DECISION ON BUYING VEHICLE? YES NO

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Research methodology

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

Sample Size: Sample size of 60 was taken based on “convenient Simple Random Sampling”.

Research Tools: The data was collected through “Survey Questionnaire Method”.

Data Collection: Data was collected through the following:-

Primary sources: Questionnaire from General public

Secondary Sources: Magazines, newspapers, Internet.

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ANALYSIS

Sample size – 40

Respondents:

Owners of Santro – 9

Owners of Zen estilo – 8

Owners of Indica – 18

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Owners of other cars – 5

Q1) what do you own?

A) car B) Two Wheeler C) Nothing

From that it was found that:-

20 people owned a car15 owned two wheelers and5 don’t nothing

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Q2) Which car do you own?

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

From that it was found that:-

8 people owns zen estilo18people owns indica9 people owns santro5 people owns others

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Q3) Are you satisfied with it?

A) Yes b) No

From that it was found that:-

25 were satisfied and15 were not.

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(4) Car customers

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

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

From that it was found that:-

25 %spends below 2000 10% spends between 2000-

4000 5 %spends above 4000

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(6) Sample of 30 customers, according to their income.

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

From that it was found that:-

9said zen estilo 8 said santro 17said Indica

6 said others Q8)Out of these which you will see first when you will buy a car?

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From that it was found that:-

12 people consider cost & perf. Before purchasing a car.

9 people consider perf.& style before purchasing a car.

8 people consider style before purchasing a car.11 people consider cost before purchasing a car.

(9)Are you planning to buy a car within next session?

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From that it was found that:-

29 people want to purchase within 1 year 11 people want to purchase in 1 month

(10)Factors affecting buying of customers

Power steering 7

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Mileage 15Price 10Others 8

FINDINGS & SUGESSTIONS

FINDINGS

TATA MOTORS is number three in passenger car market after maruti-suzuki & Hyundai.

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Majority of the customers see TATA MOTORS with savings.

Most of the customers spend large sum of money.

Out of the samples, people are highly convinced that TATA MOTORS will yield them better results.

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

Product will have a gradual progress. Because most industries would wait for the response about the product from other Company.

Customers were educated by me, about fuel efficient cars by TATA MOTORS.

SUGGESTIONS

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

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Demo of the product should be made available to Customers, since most of the purchase decisions are based on it.

Technical details should be made available to the customers in the most accurate numerical form.

The Indica has remained a bestseller throughout in the industry figuring in the top 3 selling list of cars for most of the years.

The distribution channel should be more efficient to cater the demand during peak seasons like during dassraa, diwali etc .

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

SWOT Analysis - Tata Motors Limited

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SWOT – Strengths, Weaknesses, Opportunities, Threat

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

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

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

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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.

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

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The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano!

In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.

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

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

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

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

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

US based consultancy, keystone predicts that India will become world’s third largest automobile market by 2030. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%.

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Released on: 1st July, 2009

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

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

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

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

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

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BIBLIOGRAPHY

Books:1. Philip Kotler, Kevin Keller (2009),Marketing Management (Thirteenth Edition)2. Marketing Management, The McGraw.HillCompany Rajan Saxena (Third Edition)

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

INTERNET:62

1. Tata Motors' Official Website2. Wiki - Tata Motors Ltd8. htttp://www.moneycontrol/com/tata- group/Tata motors9. http://www.yahoofinance.com/tatamotors

10. http://www.carwale.com/research/c ars

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