IN-COMPANY TRAINING REPORT ON SALES SALE S AND DISTRIBUTION DISTRIB UTION CHANNELS OF TA TATA MOTORS LT LTD D
SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) GURU JAMBHESHWAR JAMBHESHWAR UNIVERSITY UNIV ERSITY OF SCIENCE & TECHNOLOGY, HISAR
TRAINING S SU UPERVISOR:
SUBMITTED BY BY:
MR. NITIN UMAR (SALES MANAGER)
SOM DUTT ENROLLMENT NO.: !"#$$%%#!#
SESSION ' %!!"- %!
%$JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES VASANT UNJ, U NJ, NEW DELHI-$$!!! DELHI -$$!!!
i
DECLARATION I, S D*++, studen entt of BBA BBA of G* D*++, a stud G** * J/01 J/012 2 U345/04+6 U345/04+6 7 S84/38/ S84/38/ & respec ecti tivel vely y here hereby by decl declar aree that that the the Proj Projec ectt Repor Reportt on ;SALES AND T/81396 , resp AND DISTRIBUTION CHANNELS OF TATA MOTORS LTD< is the outcome of my own
work and the same has not been submitted to any other University/Institute for the award of any deree or any Professional diploma!
SOM DUTT
ii
E=ECUTIVE SUMMARY "ata #otors $imited is an Indian multinational automotive corporation head%uartered in #umbai #um bai,, India! India! Part Part of the "ata ata &roup, &roup, it was former formerly ly kno known wn as "'$() "'$() *"A *"A"A 'nineerin and $ocomotive (ompany+! Its products include passener cars, trucks, vans and coaches! "ata #otors is outh Asia-s larest automobile company. it is the leader in commercial vehicles and amon the top three in passener vehicles! orldwide it is the world0s fourth fourth1la 1lar rest est truck truck manufa manufactu cturer rer and second second1la 1lar rest est bus manufac manufactur turer er!! It has auto auto manufa manufactu cturin rin and assemb assembly ly plants plants in 2amshe 2amshedpur dpur,, Pantnaa Pantnaar, r, $ucknow $ucknow,, anand, anand, 3harwad and Pune, India, as well as in Arentina, outh Africa, "hailand and the United 4indom! "ata "ata #otors has produced and sold over 5 million vehicles in India since 6785! 678 5! 'stablished in 6758 as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 6785 in collaboration with 3aimler1Ben9 A&, which ended in 67:7! In ;<6<, "ata #otors surpassed Reliance to win the coveted title of 0India0s most valuable brand0 in an annual survey conducted by Brand =inance and "he 'conomic "imes "ata "ata #otors is a part of the "ata &roup manaes its share1holdin throuh "ata "ata ons! "he company was established in 678< as a locomotive manufacturin unit and later e>panded its operations to commercial vehicle sector in 6785 after formin a joint venture with 3aimler1Ben9 A& of &ermany! 3espite the success of its commercial vehicles, "ata reali9ed his company had to diversify and he bean to look at other products! Based on consumer demand, he decided that buildin a small car would be the most practical new venture! venture! o in 677? it launched launched "ata "ata Indica, India0s first fully indienous passener passener car! 3esined to be ine>pensive and simple to build and maintain, the Indica became a hit in the Indian market! It was also e>ported to 'urope, especially the U4! "ata ac%uired panish panish bus and coach manufacturer manufacturer @ispano @ispano (arrocera (arrocera in ;<<7! In ;<<: it formed formed a joint venture with #arcopolo !A! of Bra9il, and introduced low1floor buses in the Indian #arket under the name "ata #arcopolo Bus! Recently, it has ac%uired British 2auar $and Rover *2$R+, which includes the 3aimler and $anchester brand names!
ACNOWLEDGMENTS iii
"he satisfaction and euphoria that accompany the successful completion of any task is incomplete without the mention of people who helped in makin it possible! hile it may not be possible for me to e>press my ratitude to them individually but I wish to place on record my deepest sense of ratitude to all the retailers in 3elhi oida for the help they e>tended to me durin the completion of my thesis work!
I would like to thank, M. N4+43 * my uide, for his inspirin and invaluable uidance throuhout my work! I would like to thank him for all the advice, encouraement, help and everythin that I learnt from him!
I am deeply indebted to my friends and family, for kind interest in my work and his encouraement! It was pleasure learnin about how the whole process of buyin works! ithout him this thesis would not have been possible!
iv
TABLE OF CONTENT S9.N $.
TOPIC CHAPTER-$.! INTRODUCTION $.$
%.
$
OVERVIEW OF INDUSTRY AS A WHOLE
CHAPTER-%.! COMPANY PROFILE %.$
PROFILE OF THE ORGANISATION
%.%
PROBLEMS OF THE ORGANISATION
%.>
COMPETITION INFORMATION
%.?
SWOT ANALYSIS
@
>.
CHAPTER->.! CONCEPTUAL DISCUSSION
$
?.
CHAPTER-?.! RESEARCH METHODOLOGY
%?
#. @. . . ".
?.$
RESEARCH OBJECTIVES
?.%
RESEARCH DESIGN
?.>
DATA SOURCES
?.?
QUESTIONNAIRE DESIGN
?.#
SAMPLING DESIGN
?.@
LIMITATION OF STUDY
CHAPTER-#.! DATA ANALYSIS AND INTERPRETATION CHAPTER-@.! FACTS AND FINDINGS CHAPTER-.! RECOMMENDATIONS CHAPTER-.! CONCLUSION BIBLIOGRAPHY ANNE=URE
v
% @! @$ @? @ @"
CHAPTER ' $ INTRODUCTION "his project report is based on an in1depth analysis of an Automobile industry! "he companies selected areC •
"A"A #)")R $I#I"'3!
•
#ARU"I U3D)& $"3!
•
@)3A I'$ $"3!
•
@I3U"A #)")R $"3!
•
&''RA$ #)")R $"3!
A thorouh study of these companies, how they came into e>istence and their operations in India has been presented alon with analysis! "he companies were analysed in the backdrop of Indian car industry! "he report beins with an introduction to car industry, discussin how they entered the scene of Indian Automobile market! "hereafter an intense study has been done reardin their history, their oriin, development, e>pansion, strateies, mission, vision and how these companies work! "he findins forms the major part of the report in which an intense study has been done of the companies selected confinin automobile industry! It discusses comparison of the 8 companies on the basis of their attributes! "he ne>t section of the report is the limitations, which mentions the major limitations faced while writin the project report! After this section, conclusions have been drawn and recommendations iven to the companies under study for better functionin and availin all opportunities that come its way! (onclusion section includes the analysis of these companies! "his has been done keepin the industry in mind! Appendi> sections show the %uestionnaires filled by the various customers! Biblioraphy section mentions various sources from where the information has been e>tracted!
6
INDUSTRY OVERVIEW
"he automotive industry in India has underone a rapid transformation in the last few years! =orm a small industry sector held by a few traditional monopoly units, it has been able to evolve into one of the most dynamic sector of the Indian economy, driven by market forces! "his has been brouht about only throuh the process of liberalisation, which has provided a "ata tiple impetus to the Indian economy! Brimmin with chane and challenes, the automotive sector has not only been encourain domestic manufacturers to compete in a market which is flooded with major lobal players but is also attractin many more lobal majors to enter the fray! "he arrival of new players into the market has encouraed component manufacturers to invest in fresh capacities! @owever, the scenario has chaned in the last two yeas and rowth in the industry has been slidin mainly because today the market is flooded with too many players which has resulted in framented capacities in the vehicle sector! "he situation has turned very rim with buses and trucks showin a neative rowth of EFG percent in ;<ist for the year 677? also mainly because of hih rates of interest, inflation and reduction in overall e>penditure by the overnment and industry! (onse%uent to this, the auto component sector has also been effected by this slump in demand which has resulted in very low production rowth of 8 percent only in 67771<ports!
;
INDIA
IS
EMERGING
AS
THE
PREFERRED
OUTSOURCING DESTINATION OF THE WORLD.
"he Indian auto (omponents Industry InvestmentC U F6<< mn *;<<716<+ ProductionC U :GF< mn *;<<716<+ '>portsC U 66<< mn *;<<716<+ 4ey playersC 568 units *in the orani9ed sector+ 'mploymentC ;8<,<<< individuals
*ourceC A(#A+
F
AUTO
COMPONENT
*ourceC A(#A+
*ourceC A(#A+ Automotive components
5
!
8
C1+/ ' % COMPANY PROFILE "ata #otors $imited is India-s larest automobile company, with consolidated revenues of Rs!6,;F,6FF crores *U3 ;G billion+ in ;<6<166! It is the leader in commercial vehicles in each sement, and amon the top three in passener vehicles with winnin products in the compact, midsi9e car and utility vehicle sements! "he (ompany is the world0s fourth larest truck manufacturer, and the world0s third larest bus manufacturer! "he (ompany0s over ;8,<<< employees are uided by the vision to be Jbest in the manner in which we operate, best in the products we deliver, and best in our value system and ethics!J 'stablished in 6758, "ata #otors0 presence indeed cuts across the lenth and breadth of India! )ver 8!7 million "ata vehicles ply on Indian roads, since the first rolled out in 6785! "he (ompany0s manufacturin base in India is spread across 2amshedpur *2harkhand+, Pune *#aharashtra+, $ucknow *Uttar Pradesh+, Pantnaar *Uttarakhand+, anand *&ujarat+ and 3harwad *4arnataka+! =ollowin a strateic alliance with =iat in ;<<8, it has set up an industrial joint venture with =iat &roup Automobiles at Ranjanaon *#aharashtra+ to produce both =iat and "ata cars and =iat powertrains! "he (ompany0s dealership, sales, services and spare parts network comprises over F8<< touch points. "ata #otors also distributes and markets =iat branded cars in India! "ata #otors, the first (ompany from India0s enineerin sector to be listed in the ew Dork tock '>chane *eptember ;<<5+, has also emered as an international automobile company! "hrouh subsidiaries and associate companies, "ata #otors has operations in the U4, outh 4orea, "hailand and pain! Amon them is 2auar $and Rover, a business comprisin the two iconic British brands that was ac%uired in ;<portin these products to several international markets! "oday two1thirds of heavy commercial vehicle e>ports out of outh 4orea are from "ata 3aewoo! In ;<<8, "ata #otors ac%uired a ;6K stake in
:
@ispano (arrocera, a reputed panish bus and coach manufacturer, and subse%uently the remainin stake in ;<<7! @ispano0s presence is bein e>panded in other markets! In ;<<:, "ata #otors formed a joint venture with the Bra9il1based #arcopolo, a lobal leader in body1buildin for buses and coaches to manufacture fully1built buses and coaches for India and select international markets! In ;<<:, "ata #otors entered into joint venture with "honburi Automotive Assembly Plant (ompany of "hailand to manufacture and market the (ompany0s pickup vehicles in "hailand! "he new plant of "ata #otors *"hailand+ has beun production of the Lenon pickup truck, with the Lenon havin been launched in "hailand in ;<pandin its international footprint, established throuh e>ports since 67:6! "he (ompany0s commercial and passener vehicles are already bein marketed in several countries in 'urope, Africa, the #iddle 'ast, outh 'ast Asia, outh Asia and outh America! It has franchisee/joint venture assembly operations in 4enya, Banladesh, Ukraine, Russia, eneal and outh Africa! "he foundation of the (ompany0s rowth over the last 8< years is a deep understandin of economic stimuli and customer needs, and the ability to translate them into customer1 desired offerins throuh leadin ede R3! ith over 5,8<< enineers and scientists, the (ompany0s 'nineerin Research (entre, established in 67::, has enabled pioneerin technoloies and products! "he (ompany today has R3 centres in Pune, 2amshedpur, $ucknow, 3harwad in India, and in outh 4orea, pain, and the U4! It was "ata #otors, which developed the first indienously developed $iht (ommercial Hehicle, India0s first ports Utility Hehicle and, in 677?, the "ata Indica, India0s first fully indienous passener car! ithin two years of launch, "ata Indica became India0s larest sellin car in its sement! In ;<<8, "ata #otors created a new sement by launchin the "ata Ace, India0s first indienously developed mini1truck! In 2anuary ;<cludin HA" and transportation cost+! G
3esined with a family in mind, it has a roomy passener compartment with enerous le space and head room! It can comfortably seat four persons! Its mono1volume desin will set a new benchmark amon small cars! Its safety performance e>ceeds reulatory re%uirements in India! Its tailpipe emission performance too e>ceeds reulatory re%uirements! In terms of overall pollutants, it has a lower pollution level than two1 wheelers bein manufactured in India today! "he lean desin stratey has helped minimise weiht, which helps ma>imise performance per unit of enery consumed and delivers hih fuel efficiency! "he hih fuel efficiency also ensures that the car has low carbon dio>ide emissions, thereby providin the twin benefits of an affordable transportation solution with a low carbon footprint! In #ay ;<<7, "ata #otors introduced ushered in a new era in the Indian automobile industry, in keepin with its pioneerin tradition, by unveilin its new rane of world standard trucks called Prima! In their power, speed, carryin capacity, operatin economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life1cycle cost! "ata #otors is e%ually focussed on environment1friendly technoloies in emissions and alternative fuels! It has developed electric and hybrid vehicles both for personal and public transportation! It has also been implementin several environment1friendly technoloies in manufacturin processes, sinificantly enhancin resource conservation! "hrouh its subsidiaries, the (ompany is enaed in enineerin and automotive solutions, construction e%uipment manufacturin, automotive vehicle components manufacturin and supply chain activities, machine tools and factory automation solutions, hih1precision toolin and plastic and electronic components for automotive and computer applications, and automotive retailin and service operations! "ata #otors is committed to improvin the %uality of life of communities by workin on four thrust areas E employability, education, health and environment! "he activities touch the lives of more than a million citi9ens! "he (ompany0s support on education and employability is focussed on youth and women! "hey rane from schools to technical education institutes to actual facilitation of income eneration! In health, our intervention is in both preventive and curative healthcare! "he oal of environment protection is achieved throuh tree plantation, conservin water and creatin new water bodies and, ?
last but not the least, by introducin appropriate technoloies in our vehicles and operations for constantly enhancin environment care! ith the foundation of its rich heritae, "ata #otors today is etchin a refulent future!
B 7 D4/8+0
#r! Ratan ! "ata *(hairman+
#r! ubodh Bharava
#r! H! 4! 2airath
#r! Ravi 4ant
#r! Ranendra en
#r! usli ! adia
3r! Ralf peth
#r! ! #! Palia
#r! (arl1Peter =orster
3r! R! A! #ashelkar
#r! P! #! "elan
#r! asser #unjee
/6 M3//3+ P/033/9 S/34 M3//3+ -
#r! (arl1Peter =orster1
#anain 3irector &roup (')
#r! P! #! "elan
1
#anain 3irector 1 India )perations
#r! (! Ramakrishnan
1
(hief =inancial )fficer
#r! Ravi Pisharody
1
President *(HBU+
3r! "im $everton
1
@ead *Advanced and Product 'nineerin+
#r! ! B! Borwankar
1
enior Hice President *#f )perations1(HBU+
#r! Prabir 2ha
1
enior Hice President *@uman Resources+ 7
#r! R! Ramakrishnan
1
Hice 1 President *(ommercial 1 P(BU+
#r! &irish ah
1
@ead *Passener (ar )perations 1 P(BU+
#r! R! "! asan
1
@ead *International Business 1 (HBU+
#r! 2ohnny )ommen
1
@ead *International Business 1 P(BU+
#r! @! 4! ethna
1
(ompany ecretary
L//014 24+1 +*0+
"he "ata roup comprises over 7< operatin companies in seven business sectorsC communications and information technoloy, enineerin, materials, services, enery, consumer products and chemicals! "he roup has operations in more than ?< countries across si> continents, and its companies e>port products and services to ?8 countries! "he total revenue of "ata companies, taken toether, was :G!5 billion *around RsF67,8F5 crore+ in ;<<716<, with 8G per cent of this comin from business outside India! "ata companies employ around F78,<<< people worldwide! "he "ata name has been respected in India for 65< years for its adherence to stron values and business ethics! 'very "ata company or enterprise operates independently! 'ach of these companies has its own board of directors and shareholders, to whom it is answerable! "here are ;? publicly listed "ata enterprises and they have a combined market capitalisation of about 6<6!7: billion *as on 2une F<, ;<66+, and a shareholder base of F!8 million! "he major "ata companies are "ata teel, "ata #otors, "ata (onsultancy ervices *"(+, "ata Power, "ata (hemicals, "ata &lobal Beveraes, Indian @otels and "ata (ommunications! "ata teel became the tenth1larest steelmaker in the world after it ac%uired (orus, later renamed "ata teel 'urope! "ata #otors is amon the top five commercial vehicle manufacturers in the world and has recently ac%uired 2auar and $and Rover! "( is a leadin lobal software company, with delivery centres in the U, U4, @unary, Bra9il, Uruuay and (hina, besides India! "ata &lobal Beveraes is the second1larest player in tea in the world! "ata (hemicals is the world-s second larest manufacturer of soda ash and "ata (ommunications is one of the world-s larest wholesale voice carriers! In tandem with the increasin international footprint of "ata companies, the "ata brand is also ainin international reconition! Brand =inance, a U41based consultancy firm, 6<
recently valued the "ata brand at 66!;; billion and ranked it :8th amon the world0s "op 6<< brands! Businesseek maa9ine ranked "ata 6Gth amon the 08< #ost Innovative (ompanies0 list and the Reputation Institute, UA, in ;<<7 rated it 66th on its list of world0s most reputable companies! =ounded by 2amsetji "ata in 6?:?, "ata-s early years were inspired by the spirit of nationalism! It pioneered several industries of national importance in IndiaC steel, power, hospitality and airlines! In more recent times, its pioneerin spirit has been showcased by companies such as "(, India-s first software company, and "ata #otors, which made India-s first indienously developed car, the Indica, in 677? and recently unveiled the world-s lowest1cost car, the "ata ano! "ata companies have always believed in returnin wealth to the society they serve! "wo1 thirds of the e%uity of "ata ons, the "ata promoter company, is held by philanthropic trusts that have created national institutions for science and technoloy, medical research, social studies and the performin arts! "he trusts also provide aid and assistance to non1 overnment oranisations workin in the areas of education, healthcare and livelihoods! "ata companies also e>tend social welfare activities to communities around their industrial units! "he combined development1related e>penditure of the trusts and the companies amounts to around 5 per cent of the net profits of all the "ata companies taken toether! &oin forward, "ata is focusin on new technoloies and innovation to drive its business in India and internationally! "he ano car is one e>ample, as is the 'ka supercomputer *developed by another "ata company+, which in ;<cellence and innovation, while balancin the interests of shareholders, employees and civil society!
66
V9*/0 3 P*0/ P*0/
At the "ata roup we are committed to improvin the %uality of life of the communities we serve! e do this by strivin for leadership and lobal competitiveness in the business sectors in which we operate! )ur practice of returnin to society what we earn evokes trust amon consumers, employees, shareholders and the community! e are committed to protectin this heritae of leadership with trust throuh the manner in which we conduct our business! C/ 59*/0
"ata has always been values1driven! "hese values continue to direct the rowth and business of "ata companies! "he five core "ata values underpinnin the way we do business areC InterityC e must conduct our business fairly, with honesty and transparency! 'verythin we do must stand the test of public scrutiny! UnderstandinC e must be carin, show respect, compassion and humanity for our colleaues and customers around the world, and always work for the benefit of the communities we serve! '>cellenceC e must constantly strive to achieve the hihest possible standards in our day1to1day work and in the %uality of the oods and services we provide! UnityC e must work cohesively with our colleaues across the roup and with our customers and partners around the world, buildin stron relationships based on tolerance, understandin and mutual cooperation! ResponsibilityC e must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensurin that what comes from the people oes back to the people many times over! L//014 24+1 +*0+
"he "ata roup comprises over 7< operatin companies in seven business sectorsC communications and information technoloy, enineerin, materials, services, enery, consumer products and chemicals! "he roup has operations in more than ?< countries across si> continents, and its companies e>port products and services to ?8 countries!
6;
"he total revenue of "ata companies, taken toether, was :G!5 billion *around RsF67,8F5 crore+ in ;<<716<, with 8G per cent of this comin from business outside India! "ata companies employ around F78,<<< people worldwide! "he "ata name has been respected in India for 65< years for its adherence to stron values and business ethics! 'very "ata company or enterprise operates independently! 'ach of these companies has its own board of directors and shareholders, to whom it is answerable! "here are ;? publicly listed "ata enterprises and they have a combined market capitalisation of about 6<6!7: billion *as on 2une F<, ;<66+, and a shareholder base of F!8 million! "he major "ata companies are "ata teel, "ata #otors, "ata (onsultancy ervices *"(+, "ata Power, "ata (hemicals, "ata &lobal Beveraes, Indian @otels and "ata (ommunications! "ata teel became the tenth1larest steelmaker in the world after it ac%uired (orus, later renamed "ata teel 'urope! "ata #otors is amon the top five commercial vehicle manufacturers in the world and has recently ac%uired 2auar and $and Rover! "( is a leadin lobal software company, with delivery centres in the U, U4, @unary, Bra9il, Uruuay and (hina, besides India! "ata &lobal Beveraes is the second1larest player in tea in the world! "ata (hemicals is the world-s second larest manufacturer of soda ash and "ata (ommunications is one of the world-s larest wholesale voice carriers! In tandem with the increasin international footprint of "ata companies, the "ata brand is also ainin international reconition! Brand =inance, a U41based consultancy firm, recently valued the "ata brand at 66!;; billion and ranked it :8th amon the world0s "op 6<< brands! Businesseek maa9ine ranked "ata 6Gth amon the 08< #ost Innovative (ompanies0 list and the Reputation Institute, UA, in ;<<7 rated it 66th on its list of world0s most reputable companies! =ounded by 2amsetji "ata in 6?:?, "ata-s early years were inspired by the spirit of nationalism! It pioneered several industries of national importance in IndiaC steel, power, hospitality and airlines! In more recent times, its pioneerin spirit has been showcased by companies such as "(, India-s first software company, and "ata #otors, which made India-s first indienously developed car, the Indica, in 677? and recently unveiled the world-s lowest1cost car, the "ata ano!
6F
"ata companies have always believed in returnin wealth to the society they serve! "wo1 thirds of the e%uity of "ata ons, the "ata promoter company, is held by philanthropic trusts that have created national institutions for science and technoloy, medical research, social studies and the performin arts! "he trusts also provide aid and assistance to non1 overnment oranisations workin in the areas of education, healthcare and livelihoods! "ata companies also e>tend social welfare activities to communities around their industrial units! "he combined development1related e>penditure of the trusts and the companies amounts to around 5 per cent of the net profits of all the "ata companies taken toether! &oin forward, "ata is focusin on new technoloies and innovation to drive its business in India and internationally! "he ano car is one e>ample, as is the 'ka supercomputer *developed by another "ata company+, which in ;<cellence and innovation, while balancin the interests of shareholders, employees and civil society!
65
SWOT S+/3+10 •
"he internationali9ation stratey so far has been to keep local manaers in new ac%uisitions, and to only transplant a couple of senior manaers from India into the new market! "he benefit is that "ata has been able to e>chane e>pertise! =or e>ample after the 3aewoo ac%uisition the Indian company leaned work discipline and how to et the final product Mriht first time!-
•
"he company has a stratey in place for the ne>t stae of its e>pansion! ot only is it focusin upon new products and ac%uisitions, but it also has a proramme of intensive manaement development in place in order to establish its leaders for tomorrow!
•
"he company has had a successful alliance with Italian mass producer =iat since ;<<:! "his has enhanced the product portfolio for "ata and =iat in terms of production and knowlede e>chane! =or e>ample, the =iat Palio tyle was launched by "ata in ;<
W/3/00/0 •
"he company-s passener car products are based upon Frd and 5th eneration platforms, which put "ata #otors $imited at a disadvantae with competin car manufacturers!
•
3espite buyin the 2auar and $and Rover brands *see opportunities below+. "at has not ot a foothold in the lu>ury car sement in its domestic, Indian market! Is the brand associated with commercial vehicles and low1cost passener cars to the e>tent that it has isolated itself from lucrative sements in a more aspirin IndiaN
•
)ne weakness which is often not reconised is that in 'nlish the word Mtatmeans rubbish! ould the brand sensitive British consumer ever buy into such a brandN #aybe not, but they would buy into =iat, 2auar and $and Rover *see opportunities and strenths+!
68
O+*34+4/0
In the summer of ;<
•
purchased the $and Rover and 2auar brands from =ord #otors for U4 O;!F million! "wo of the orld-s lu>ury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the lu>ury sements! "ata #otors $imited ac%uired 3aewoo #otor-s (ommercial vehicle business in
•
;<<5 for around U3 6: million! •
ano is the cheapest car in the orld 1 retailin at little more than a motorbike! hilst the orld is ettin ready for reener alternatives to as1u99lers, is the ano the answer in terms of concept or brandN Incidentally, the new $and Rover and 2auar models will cost up to ?8 times more than a standard ano "he new lobal track platform is about to be launched from its 4orean
•
*previously 3aewoo+ plant! Aain, at a time when the orld is lookin for environmentally friendly transport alternatives, is now the riht time to move into this sementN "he answer to this %uestion *and the one above+ is that new and emerin industrial nations such as India, outh 4orea and (hina will have a thirst for low1cost passener and commercial vehicles! "hese are the opportunities! @owever the company has put in place a very proactive (orporate ocial Responsibility *(R+ committee to address potential strateies that will make is operations more sustainable! "he rane of uper #ilo fuel efficient buses are powered by super1efficient, eco1
•
friendly enines! "he bus has optional oranic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 6
)ther competin car manufacturers have been in the passener car business for 5<, 8< or more years! "herefore "ata #otors $imited has to catch up in terms of %uality and lean production!
6:
•
ustainability and environmentalism could mean e>tra costs for this low1cost producer! "his could impact its underpinnin competitive advantae! )bviously, as "ata lobalises and buys into other brands this problem could be alleviated!
•
ince the company has focused upon the commercial and small vehicle sements, it has left itself open to competition from overseas companies for the emerin Indian lu>ury sements! =or e>ample I(I(I bank and 3aimler(hrysler have invested in a new Pune1based plant which will build 8<<< new #ercedes1 Ben9 per annum! )ther players developin lu>ury cars tareted at the Indian market include =ord, @onda and "oyota! In fact the entire Indian market has become a taret for other lobal competitors includin #aruti Udyo, &eneral #otors, =ord and others!
•
Risin prices in the lobal economy could pose a threat to "ata #otors $imited on a couple of fronts! "he price of steel and aluminium is increasin puttin pressure on the costs of production! #any of "ata-s products run on 3iesel fuel which is becomin e>pensive lobally and within its traditional home market!
6G
CHAPTER ' > CONCEPTUAL DISCUSSION
S9/0 3 D40+4*+43 C133/9 7 T+ M+0 L+
Promotion is an intricate part of market mi>! #arketin mi> includes product, price, place/distribution and promotion *5 Ps+! "he activities of the first three Ps 11 product plannin, pricin, and distribution 11 are performed mainly within the firm or between the firm and its marketin Qpartners! ith promotional activities, a firm communicates directly with potential customers! Promotion is an attempt to influence! Promotional activities are desined to inform, persuade, or remind the market of the firm and its products and ultimately to influence consumers- feelins, beliefs, and behavior! A successful promotion proram should include all the communication tools that can deliver a messae to a taret audience! A promotion proram can include five componentsC advertisin, sales promotion, public relations, sales force, and direct marketin!
A5/+4043 ! Advertisin is a paid form of nonpersonal communication by an identified
sponsor! "he mass media used include "H, radio, maa9ine, billboards, newspapers, and direct mailin! Advertisin is the most effective tool for buildin awareness of a company, product or service! It is also relatively ine>pensive based on the cost per thousand people reached! @owever, broadcastin a messae to everyone throuh media such as television is not very tareted! "he most effective advertisin is narrowly tareted and uses media taretin specific audience interests! "he drawback is that most advertisin does not deliver sales %uickly! It works mostly by chanin minds, not chanin behaviors!
S9/0 P+43 ! )n the other hand, sales promotion chanes behavior! (ustomers will
act upon a sale, an offer, or a chance to win somethin! ales promotion activities include coupons, discounts, in1store displays, trade shows, samples, in1store demonstrations, and contests! A company can also sponsor trade promotion, in which supermarkets or other 6?
retailers are iven discounts to promote a specific product! @owever, most incentives are short1term in nature! In addition, sales promotion taretin consumers weakens consumer brand loyalty! (onsumers increasinly e>pect to buy products below listed prices! (onsumers simply buy whichever brand is on sale durin a particular week and switch to a competin brand when it oes on sale! "he only situation where sales promotion is profitable is when the company truly has a superior product paired with low product awareness! In this case, sales promotion will et people to try the product, and they will be less likely to switch to a competin brand when sales are over!
P*948 R/9+430 ! Because sales promotion often loses money, and advertisin is
becomin less effective and e>pensive, companies should investiate the impact of marketin public relations! #arketin public relations is desined to create a positive imae of the company to a taret market! It uses non1paid communication by presentin commercially sinificant news in a published medium or obtainin favorable presentation of the business or product on radio or television! "ools to create publicity include publications *reports and brochures+. events *sponsorin activities and trade shows+. news *favorable stories about the company, its people, and products+. community involvement *time or money invested in local interests+. identity media *business cards, stationary, and sins+. lobbyin activity. and social responsibility to the environment and society!
S9/0 F8/ ! "he more comple> the product or service, the more necessary to use sales
people who can answer %uestions and help customers! @owever, a company-s sales force is one of the most e>pensive marketin communication personal sellin than on any other form of promotion! hat is important is not the sales person-s costs but his/her costs in relation to the sales he/she enerated! A top sales person can often sell five to ten times more than an averae sales person! (ompanies tryin to save money by payin less to the sales people often have the hihest costs1to1sales ratio with hih turnover rate and hih trainin costs! In addition to hirin ood people, a company should help its sales people be more productive by providin them sales tools, i!e!, computers, fa> machine, and e1mail, and 67
ivin them easy access to company data to help them become more informed! ales people offer the advantae of one1on1one sellin! "hey should be trained to consciously find out what customers want and alert the company!
D4/8+ M/+43 ! 3irect marketin by mail, phone, or personal contact can be used to
effectively communicate with a very narrowly tareted roup! $ists for direct marketin purposes can be purchased from different sources! @owever, for direct marketin to be effective, it is important to maintain a comprehensive customer database in the company and manae the database in a way that it can be divided into subcateories for different promotional prorams! All the promotional activities must be interated to deliver a consistent and positive messae! A multi1media promotion campain is usually more effective than any promotional activity alone! =or e>ample, if a company is launchin a new product or proram, it can contact the media to et free press and then run an advertisement offerin information, combined with offerin sales promotion, direct marketin by mail or phone, and product demonstration or a visit by sales people! In developin a promotion proram, a company must first determine the taret audience, the most important objectives, and a promotion budet and then desin the promotion activities accordinly! Promotional objectives can include providin product information, stimulatin demand, increasin store traffic, differentiatin products, buildin a brand imae, remindin current customers about product benefits, counterin competitorsoffers, respondin to the news, smoothin out seasonal demand fluctuation, and improvin customer relationships! Promotion must be interated into a firm-s strateic plannin because all elements of the market mi> 11 product, price, place, and promotion 11 must be coordinated in order for a promotion proram to be successful!
S//3++43 is essentially the identification of subsets of buyers within a market who
share similar needs and who demonstrate similar buyer behavior! "he world is made up from billions of buyers with their own sets of needs and behavior! ementation aims to match roups of purchasers with the same set of needs and buyer behavior! uch a roup is known as a 0sement0! ;<
ementation is a form of critical evaluation rather than a prescribed process or system, and hence no two markets are defined and semented in the same way! @owever there are a number of underpinnin criteria that assist us with sementationC S
Is the sement viableN (an we make a profit from itN
S
Is the sement accessibleN @ow easy is it for us to et into the sementN
S
Is the sement measurableN (an we obtain realistic data to consider its potentialN
"here are many ways that a sement can be considered! =or e>ample, the auto market could be semented byC driver ae, enine si9e, model type, cost, and so on! @owever the more eneral bases includeC S
by eoraphy 1 such as where in the world was the product bouht!
S
by psychoraphics 1 such as lifestyle or beliefs!
S
by socio1cultural factors 1 such as class!
S
by demoraphy 1 such as ae, se>, and so on!
A company will evaluate each sement based upon potential business success! )pportunities will depend upon factors such asC the potential rowth of the sement the state of competitive rivalry within the sement how much profit the sement will deliver how bi the sement is how the sement fits with the current direction of the company and its vision! P04+4343 A product0s position is how potential buyers see the product! Positionin is
e>pressed relative to the position of competitors! Positionin is somethin *perception+ that happens 43 +1/ 430 7 the taret market! It is the areate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same cateory! It will happen whether or not a company0s manaement is proactive, reactive or passive about the on1oin process of evolvin a position! But a company can positively influence the perceptions throuh enlihtened strateic actions! In marketin, 04+4343 has come to mean the process by which marketers try to create an imae or identity in the minds of their taret market for its product, brand, or orani9ation! It is the 0relative competitive comparison0 their product occupies in a iven market as perceived by the taret market
;6
DISTRIBUTION CHANNEL
3istribution in marketin conte>t means the transfer of oods from producer to consumer, as we all known in a distribution system, we are to first find out what kind of distribution channels is to be selected so as the firm can et a convenient supply and economic maintenance of profit! In "ata #otor Industry, where flow of oods, matters a lot, it is must to consider followin points very carefully! election of channels for distribution arehousin and transport! )perational research $oistic #i>
$. SELECTION OF CHANNEL OF DISTRIBUTION
=or selectin a channel for distribution followin point are to be considered! )nce a consumer does not find it in retail shop, head may instantly choose the another, at lease for trial and here beins the decrease of market share! "ata #otor should not only be always available in retail ships but be visible to consumer also! =inancial position of manufacturerC1 "he fewer the number of orani9ation in the chain, smaller the burden on the manufacturer! '>penditure on distribution throuh alternative channels must be noted! "he distribution marin is affected with the selection of distribution channel! Hariety of product to be soldC1 more the variety of product, more the responsibility of marketin department of the company!
%.
WAREHOUSING AND TRANSPORTING
arehousin and transport are essential part of distribution system! arehousin should be done in a manner, minimum maintenance of cost should occur! "hat should be a source of %uick supply to customer because from this place basic supply starts! "ransport is costly, so decision should be taken as to whether warehouses are to be centrally situated or de centrali9ed! "o maintain economical transport, control of cost of ;;
vehicle is essential and shipment must be planned so those vehicles are effectively employed!
>. OPERATIONAL RESEARCH
)perational research is valuable in improvin aspects of distribution process, @owN •
By #athematical representation of whole distribution system
•
othin and comparin transport cost
•
#easurin warehouse operation costs
•
#easurin stock level
;F
CHAPTER ' ? RESEARCH OBJECTIVES & METHODOLOGY RESEARCH OBJECTIVE
In this project work, attempt has been made to study and analy9e important dimensions related to the distribution etwork of "ata #otor (ompany! "he research work has been carried out with the followin objectives in mindC 6+ "o study the sales and distribution (hannel of "ata #otors $imited ;+ "o identify the factors that affects brand repeat purchasin toward "ata #otor users! F+ "o find out that whether the "ata #otor users are brand loyal or not! 5+ "o study market share of "ata #otor in comparison to other competitors! 8+ "o study the problems that 3ealers are facin in that reion! :+ "o study the strateies adopted by different competitors! G+ "o study and evaluate the sales distribution strateies of the "ata #otors! ?+ "o study and enlist the benefits of the popular plans of the "ata #otors! 7+ "o do cross product analysis of various Auto products of "ata #otors with different 'lectrical companies in the market as it will help in comparin and contrastin the difference in these products!
S8/ 7 +1/040 2 "hese are some of the scope of the studyC 6! "he present study can be e>tended to access the present marketin condition of Indian automobile sector! ;!"he study can be used to desin a proper product, price, place and promotional stratey for the market! F! =rom the present study we can know the market share of different products and accordinly formulated stratey to enhance it! 5! "he result of marketin success can be interpreted to assess the rate of employee satisfaction in variousdepartments!
;5
8! "his study can be applied to find out an effective distribution channel to enhance the sale of various products of "oyota motors! I will try to enlist the key features of the sales and distribution of "ata India $td and also try and evaluate the strenths and weakness if any of the ales and 3istribution trateies of "ata India $td! "he thesis is beneficial for orani9ation! "he thesis will provide complete information about the comparative analysis of "ata with their competitor like @yundai, #ahindra, "ata, and "ata!It will serve as a source of reference and help "ata to improve the system!
METHODOLOGY DATA COLLECTION METHODS: T1/ 09/ 04/ +/3 20 $!! 830*/0
"he Area chosen was 3elhi! "he data was collected by means of a+ Tuestionnaires b+ Informal 3iscussions c+ Interviews *formal informal+
QUESTIONNAIRES
Tuestionnaire prepared was open ended, structured, and disuised! "he Tuestionnaire was desined in such a way that it catered to every aspect of the research objective! It was disuised as the consumer was kept unaware of the product for which the research was bein conducted! Before fillin up the Tuestionnaire, it was thorouhly discussed with them and their views were noted down in the form of facts *answers+ in the Tuestionnaire! It was open ended, structured and many factual Tuasifactual information was needed to be taken down!
;8
INFORMAL DISCUSSIONS
Informal discussions were conducted after arranin Informal meetins with the people *"ata #otor viewer and correspondent+! A detailed discussion was done and personal characteristics, psycholoy, demoraphic psychoraphic behaviorial dimensions were studied durin the interview! "heir likins, dislikins, tastes, preferences, etc! were taken into account and it was tried that overall personal sketch was drawn! "his all helped in locatin e>actly the taret market for "ata Products! It also helped in knowin the needs, demands, e>pectations supply in the market! Althouh the sample si9e was only 6<< yet it led to a very weihted conclusion!
INTERVIEWS
Interviews just like informal discussions were preplanned! Infact interviews only led to informal discussions! Interviews were formal and in some cases, this was the initial step which led to second third meetin with the interviewee and they were able to part with the information freely and informally with the researcher! Interviews were preplanned *after takin an appointment with them in many cases+ very formal and structured! hen this was throuh, they were asked to fill in one chart with parameters of a "ata Product ivin their rankins! It helped in findin out their awareness level and needs! A sample of Tuestionnaire and Rankin chart are unopened in the Anne>ures!
INFORMATION
6! =acts ;! Tuasi1facts F! "he awareness of the people 5! "heir needs 8! 3emands :! atisfaction with the product G! )pinions ;:
SAMPLING
amplin done was stratified random samplin! It was random because consumers were not determined, they were divided into roups and this was done only to e>plore the dimensions of the taret market! Any "ata #otor was picked up at random with objective to conduct the research! It was stratified in the way that the percentae to interview the e>act number "ata #otor was not predecided! "hey were picked up at random! @owever, the percentae of these two was calculated while drawin the results!
SCALING TECHNIQUES
In the second last chapter of the project, the rankin chart is used with the help of which the weihtaes etc! have been iven to different competitions the product in consideration! =or the rankin chart *as e>plained above+ rankin was done by the customers in ordinal scalin method!
PERCEPTUAL MAPPING
Perceptual mappin techni%ue is used to locate the customers- preferences their perceptions on raph chart! It helps in findin out the most needed parameter in the market! "he techni%ue of perceptual mappin helps marketers to determine just how their products appear to consumers in relation to competitions products on one or more product characteristics!
;G
CHAPTER ' # DATA ANALYSIS AND INTERPRETATION COMPARATIVE STUDY OF LEADING BRANDS OF TATA MOTOR IN RETAIL IN SOUTH AND EAST DELHI
Q. $ A5// M3+196 S9/0 V9*/ NORTH DELHI A5// M3+196 S9/0 V9*/
nF8 60.00%
57.14%
50.00%
s r e l a e 40.00% 3 f o e 30.00% a t n e 20.00% c r e P
20% 14.28% 8.58%
10.00% 0.00% 0 - 100
100 - 200
200 - 300
300 & above
#onthly ,ales
In orth 3elhi 8G!65 K of the total (ar dealers have monthly sales volume in units less than 6<< and ;
;?
WEST DELHI Average Monthly Sales volume
nG: 70.00%
65.81%
60.00%
s r e l a 50.00% e D f 40.00% o e g 30.00% a t n e c 20.00% r e P 10.00%
21.05% 6.57%
6.57%
200 - 300
300 & above
0.00% 0 - 100
100 - 200
Monthly Sales
In est 3elhi :8!?6 K of the total (ar dealers have monthly sales volume in units less than 6<< and :!8G K of the total (ar dealers sell more than F<< (ars on averae every month!
CENTRAL DELHI Average Monthly Sales volume
nF7 60.00% s r 50.00% e l a e 40.00% D f o e 30.00% g a t n 20.00% e c r e 10.00% P
48.73%
25.64% 17.94% 7.69%
0.00% 0 - 100
100 - 200
200 - 300
300 & above
Monthly Sales
In (entral 3elhi 5?!GF K of the total (ar dealers have monthly sales volume in units less than 6<< and ;8!:5 K of the total (ar dealers sell more than F<< (ars on averae every month!
;7
TOTAL AREA COVERED
n68<
)verall in the covered area most of the (ar dealers are small sellin less than 6<< (ars a month! @owever data in the sales value terms would have iven even better idea!
F<
Q. % D 6* // +1/ 799243 30 7 C0 NORTH DELHI
OTH!"
51.42% 91.14%
Tata Motor s d n a r B
Hyundai
97.14%
Maruti
97.14%
Toyota 0.00%
48.57% 20.00% 40.00% 60.00% 80.00% 100.00 % Percentage of Dealers
120.00 %
As it is shown in the above chart that only 76!65K dealers out of total dealers *who responded+ keep "ata #otor! hereas 7G!65K of them keep #aruti, 7G!65K of them keep @yundai, 5?!8GK of them keep "ata! WEST DELHI
OTH!"
48.68%
Tata Motor s d n a r B
94.73%
Hyundai
96.05%
Maruti
94.73%
Toyota 0.00%
52.63% 20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Percentage of Dealers
In est 3elhi the penetration level of "ata is slihtly better than that of orth 3elhi!
! F6
CENTRAL DELHI
OTH!"
s d n a r B
53.84%
Tata Motor
94.87%
Hyundai
97.43%
Maruti
97.43%
Toyota
64.11%
0 .0 0%
50 .00 %
1 0 0.00 %
1 50 .0 0 %
Percentage of Dealers
In (entral 3elhi the penetration level of "ata #otor is better than that of orth and est 3elhi!
TOTAL AREA AREA COVERED COVER ED
OTH!"
50.67
Tata Tata Motor M otor
94
Hyundai
96.67
Maruti
96
Toyota
54.67 0
50
100
Brands
"erie#1
150 Percentae of 3ealers
In the total area covered "ata #otor penetration level or reach is comparable at all to its competitors #aruti, @yundai and "oyota! "oyota!
F;
Q. > G45/ +1/ 3/0 7 + 745/ 30 43 / 7 09/0. NORTH DELHI
5 4 3 2 1 0
3.85
4
3.72 2.7
2.29
Toyota
Maruti Hyundai Hyundai Tata Motor Ot$er# Brands
&ivin 8 to 6 points to the rank 6 to 8 respectively the averae points have been calculated for each of the brands
@yundai happens to be the most sellin brand in orth 3elhi area!
WEST DELHI
5
4.15 3.5
4 2.62
3
3.74 2.3
2 1 0 Toyota yota
Maru Maruti ti
Hyun Hyunda daii
Tata Moto Motorr Ot$e Ot$er# r#
Brands
In est est 3elhi also @yundai is the ma>imum sellin brand followed by b y "ata "ata #otor and #aruti!
FF
CENTRAL DELHI
5
4.16
3.97
4
3.35 2.36
3
2.1
2 1 0 Toyota yota
Maru Maruti ti
Hyun Hyunda daii
Tata Moto Motorr Ot$e Ot$er# r#
Brands
In (entral 3elhi #aruti is the most sellin brand followed by @yundai and "ata #otor!
TOTAL AREA AREA COVERED COVER ED 5
3.76
4 3
4.06
2.48
3.63 2.33
2 1 0 Toyota yota
Maru Maruti ti
Hyun Hyunda daii
Tata Moto Motorr Ot$e Ot$er# r#
Brands
In the total area covered @yundai is the most sellin Brand closely followed by #aruti "ata #otor!
F5
Q. ? G45/ +1/ 3/0 7 + 745/ 30 43 / 7 /0/ 7 549494+6. NORTH DELHI
Availability of Brands
4.38
5 4 3 2 1 0
3.38
3.06
Toyota
3.72 2.33
Maruti Hyundai Tata Motor Ot$er# Brand
#ost of the dealers said that each brand is available at e%ual ease! o the findins shown in the above chart are not of much importance! WEST DELHI Availability of Brands 4.35
5 4 3
3.66 2.9
3.28 2.32
2 1 0 Toyota
#aruti Hyundai
"ata #otor Ot$er#
Brand
In est 3elhi most of the dealers said that each brand is e%ually easily available!
F8
CENTRAL DELHI Availability of Brands 4.49
5
3.68
4 3
3.24
2.48
1.95
2 1 0 Toyota
#aruti Hyundai
"ata #otor Ot$er#
Brand
In (entral 3elhi most of the dealers said that each brand is e%ually easily available
TOTAL AREA COVERED
4.4
5 4 3
3.6 2.8
3.37 2.23
2 1 0 Toyota
#aruti Hyundai
"ata #otor Ot$er#
Brands
Almost all the brands are available to the dealers at e%ual ease in the total area covered!
F:
Q. # R3 +1/ 799243 78+0 8843 + +1/ /7//38/ 7 +1/ 8*0+/. NORTH DELHI
6 5 4 3 2 1 0
4.79 4.06 2.88 2.14 1.17
& ' ! %
+ * ) ! (
, . . T - " , O O * H Brands ' T
" ! 0 T ) /
Brand and Price are the first two preferences of the customer in orth 3elhi!
After that they see the style *looks+ of the (ar!
#ost (ustomers here are not aware of the technoloy part of a (ar that-s why they-ve ranked it in the end! WEST DELHI 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
4.59
2.89 2.18 1.04
& ' ! %
4.29
+ * ) ! (
. " , ! . 0 T T , O " ) O / * H ' Brands T
In est 3elhi also the picture is almost similar to what it is in orth 3elhi when it comes to the preference of the customer! FG
CENTRAL DELHI 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
4.64
4.23 2.85 2.2 1.08
& ' ! %
+ * ) ! (
. " , ! , O . 0 T O T " ) * H / ' T Brands
In (entral 3elhi also the picture is almost similar to what it is in orth and est 3elhi when it comes to the preference of the customer!
TOTAL AREA COVERED 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0
4.61
4.22 2.88 2.18 1.08
& ' ! %
+ * ) ! (
. " , O ! . , 0 T T O " ) * H / ' T Brands
In the total covered area Price and Brand are the two most important thins that the customers look for while buyin a (ar!
F?
Q. @ R3 +1/ 799243 30 8843 + +1/ 43 /3/ (3 ? 43+ 089/, 21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G). NORTH DELHI Rating according to Margin Earned (where 1 stands for Very Poor and stands for Very !ood" 4 3.5 3 k n a R
2.5 2
1
3.5
3.26
1.5 2.12
1.58
0.5 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
#ost of dealers in orth 3elhi said that they et ma>imum marin on "ata #otor, followed by #aruti and then on "oyota!
In @yundai they et the least marin!
F7
WEST DELHI Rating according to Margin Earned (21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G)
3.5 3 2.5 k 2 n a R 1.5
2.75
3.21
2.99
1
1.84
0.5 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
In est 3elhi most of the dealers said that they et ma>imum marin on #aruti, followed by "ata #otor!
Aain "oyota is on Frd place!
As it was in orth 3elhi, most of the dealers in est 3elhi said that they et minimum marin on @yundai!
5<
CENTRAL DELHI Rating according to Margin Earned (21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G)
3.5 3 2.5 k 2 n a R 1.5
3.27
3.21
1
2.07
1.8
0.5 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
In (entral 3elhi most of the dealers said that they et ma>imum marin on "ata #otor, followed by #aruti!
@yundai is on Frd place in (entral 3elhi!
"he dealers of (entral 3elhi et least marin in "ata!
TOTAL AREA COVERED
3.5
3.22
3.18
3 2.5
2.33 1.84
2 1.5 1 0.5 0 Toyota
#aruti
@yundai
Brands
"ata #otor
#ost of the dealers in the total area covered said that they et ma>imum marin on #aruti and "ata #otor and minimum on @yundai! 56
Q. H2 7/*/3+ 0/849 77/0 / 45/3 + 6* 6 799243 30 NORTH DELHI
80.00% 70.00% s r e l a e D f o e g a t n e c r e P
60.00% Toyota
50.00%
Maruti
40.00%
Hyundai
30.00%
Tata Motor
20.00% 10.00% 0.00% One in an year
Ha yeary
uatery
More t$an 4 tie#
Time Duration
Almost F8!;7K of the dealers who keep "ata motor et special offers and
discounts half year, and :5!G6 K of dealers et special offers and discounts Tuarterly! *As per what they said+
5;
WEST DELHI 80.00% s r e l a e D f o e g a t n e c r e P
70.00% 60.00% Toyota
50.00%
Maruti
40.00%
Hyundai
30.00%
Tata Motor
20.00% 10.00% 0.00% One in an year
Ha yeary
uatery
More t$an 4 tie#
Time Duration
In est 3elhi about G!8K of the dealers *who keep "ata motor+ said that they et schemes on "ata motor once a year whereas about 88K said that they et it half yearly, ;G!8
5F
CENTRAL DELHI
80% 70% s r e l a e D f o e g a t n e c r e P
60% Toyota
50%
Maruti
40%
Hyundai
30%
Tata Motor
20% 10% 0% One in an year
Ha yeary
uatery
More t$an 4 tie#
Time duration
In (entral 3elhi about 5K of the dealers *who keep "ata motor+ said that they et schemes on "ata motor once a year whereas about :5K said that they et it @alf yearly, ;?K said that they et schemes Tuarterly and 5K said that they et more than 5 times a year! TOTAL AREA COVERED
s r e l a e D f o e g 80.00% a t 70.00% n e 60.00% c r 50.00% e P 40.00%
30.00% 20.00% 10.00% 0.00% One a year
Toyota
Maruti
Ha eary
uartery ore t$an 4 tie# a year Time Duration
Hyundai
55
Tata Motor
#ost of the dealers said that they et special offers or schemes half yearly on almost all the brands!
58
Q. H2 6* +/ +1/ 7+/ 09/0 0/548/ 7 +1/ 799243 30 (3 ? 43+ 089/, 21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G).
#$R%& 'E&) Rating on the basis of After Sales Service (21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G) 4 3 k n a 2 R
2.94
3.15
3.38 2.56
1 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
In orth 3elhi the after sales service of "oyota and "ata #otor has been rated averae and the service of #aruti, and @yundai has been rated as ood as it is shown in the above raph!
WEST DELHI Rating on the basis of After Sales Service (21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G) 3.5 3 2.5 2 k n a R 1.5
2.68
2.92
2.88 2.3
1 0.5 0 Toyota
Maruti
Hyundai
Brands
5:
Tata Motor
In est 3elhi the picture is completely different! All the three brands e>cept @yundai have been rated above averae, as far as the after sales service is concerned!
CENTRAL DELHI Rating on the basis of After Sales Service (21// $ 0+30 7 V/6 P 3 ? 0+30 7 V/6 G)
3.5 3 2.5 k n a R
2 3.26
1.5 1
2.5
2.78
1.8
0.5 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
In (entral 3elhi #aruti has the best After ales ervice, followed by "ata #otor!
After ales ervice of @yundai has been rated averae
"oyota is on the 5th position!
5G
TOTAL AREA COVERED
4 3
3.04
2.61
2.46
2.8
2 1 0 Toyota
Maruti
Hyundai
Tata Motor
Brands
In the total area covered the after sales service of #aruti has been rated as the best followed by @yundai and "ata #otor and after sales service of "oyota is the worst!
5?
Q." W1+ 78+0 8843 + 6*, 477//3+4+/ T+ M+ 7 +1/ 30 NORTH DELHI
othin
s r o t c a F
FK
Innovative 3esins
8K
International Brand
8K
Price
;!8
,porty $ook
8K
$u>uty (ollection
F8K
(ontrol Price
58K
!H
$!H
%!H
>!H
?!H
#!H
Percentage of Dealers
In orth 3elhi, accordin to the (ar dealers $u>ury and porty $ooks are the two major factors, which differentiate "ata #otor from other Brands!
57
F8 K of the dealers said that lu>ury car and 58 K of the "ata #otor from other Brands!
8<
WEST DELHI
othin
After ,ales ,ervice
;F!:?K
8!;:K
Price
s r o t c a =
"echnoloy
International Brand
Innovative 3esins
;G!:FK
7!;6K
:!8?K
65!5GK
on Availability of ,pare parts ,porty $ook
F6!8?K
;:!F;K
In est 3elhi, accordin to the (ar dealers, the three major factors, which differentiate "ata #otor from other BrandsN
F6!8? K of the dealers said that $u>ury, ;:!F; K of the dealers said porty $ooks and ;G!:F K of the dealers said the factors which differentiate "ata #otor from other Brands!
;:!:? K of the dealers of est 3elhi said that "ata #otor don-t have any uni%ue feature, which can differentiate it from other (ars!
86
CENTRAL DELHI
othin
6;!?;K
Innovative 3esins
G!:7K
International Brand
8!6FK
Price
G!:7K
s r o t c a =
,porty $ook
8:!56K
$u>uty (ollection (ontrol Price
5:!68K 8!6FK
In (entral 3elhi, the picture is same as it was in orth 3elhi! Accordin to the (ar dealers the two major factors, which differentiate "ata #otor from other Brands!
5:!68 K of the dealers said that lu>ury car and 8:!56 K of the dealers said the factors which differentiate "ata #otor from other Brands!
6;!?; K of the (ar dealers of (entral 3elhi said that "ata #otor don-t have any uni%ue feature, which can differentiate it from other (ars!
8;
TOTAL AREA COVERED # r e 2 a e + 3 o e 9 a t n e )ter 1 r e %
*ot$in
11.22% 1.46%
"ae# "ervie
2.44% 12.19%
"tye Te$nooy
4.39%
&nternationa (rand
3.90%
&nnovative +e#in#
7.80%
,uury 'oetion
27.32%
"orty ,oo#
29.27%
0.00% 10.00 20.00 30.00 40.00 % Factors % % %
$u>ury car the
thins which dealers find most differentiatin about "ata #otor!
8F
Q. $! W1+ / +1/ +1430, 6* 94/ *+ T+ M+
#$R%& 'E&)
(ontrol Price
:!??K
Tuick Reaction Acc to #arket 3emand
F!55K
#ore ,pecial )ffers
F!55K
#ake 'asily Repairable (ar
F!55K
s r o t c a =
#ake #ore (ar in F!55K $ow Price Rane )pen '>clusive ,howrooms
F!55K
;5!6FK
Increase 3ealer #arin
56!FGK
After ,ales ,ervice
Proper Advertisement
6
6
Percentae of 3ealers
After ales ervice are the two factors, which dealers of orth 3elhi like most about "oyota!
56!FG K of the total (ar dealers said that they like of "oyota!
85
WEST DELHI
othin 3istribution (hannel
6!F;K
After ,ales ,ervice
F!78K
(ontrol Price
s r o t c a =
;;!FGK
;!:FK
Improved "echnoloy Innovative 3esins
,hapes
:!8?K
7!;6K
6
Advertisement
Packain
67!G5K
:!8?K
Repairable #achinery
88!;:K
6
;
F
5
8
:
Percentae of 3ealers
$u>ury cars are the two factors, which dealers of est 3elhi like most about "oyota!
88!;: K of the total (ar dealers said that they like of "ata!
;;!FG K of the total (ar dealers said that they don-t like any thin in "ata!
88
CENTRAL DELHI
othin
G!:7K
"echnoloy
G!:7K
Price
;F!
s r o t c a =
Advertisement
$u>uty (ollection
8!6FK
;F!
:7!;FK
(ontrol Price
Percentae of 3ealers
tyle and $u>ury rane are the three factors, which dealers of (entral 3elhi like most about "ata!
56!FG K of the total (ar dealers said that they like of "ata!
8:
s r e l a e TOTAL AREA COVERED D f o e *ot$in g a t n )dverti#eent# e c r e +ay +ate 'ar# P
+urabiity *e: Mode# rie# ,oo# )ter "ae# "ervie rie &nnovative +e#in# +iita 'oetion 0.00% 10.00 20.00 30.00 40.00 50.00 % % % % % Factors
#ost of the 3ealers like the of "ata (ares which they say is the best! In other thins they like $u>ury, $ooks and new models!
8G
Q. $$ W1+ / +1/ +1430, 6* 3+ 94/ *+ T+ +0 NORTH DELHI
othin on Availability of ,pare Parts
s r o t c a =
;!6GK
;!6GK
#arin
;!6GK
Packain
;!6GK
#ovement Problem Reaction Acc to #arket need
68!;6K
5!F5K
on Repairable #achinery After ,ales ,ervice
F;!:
68!;6K
@ih Price < !<
;F!7:K
8 !<
6
6 8! << K
;
; 8! << K
F
F 8! << K
Percentae of 3ealers
on Repairable #achinery, @ih Price, #ovement Problem and After ales ervice are some of the major factors, which dealers of orth 3elhi don-t like about "ata motors!
)nly ;!6G K of the total (ar dealers said that there is nothin in "ata motors which they don-t like!
8?
WEST DELHI
othin
;;!FGK
Advertisements
;!:FK
o Reular visits of ,alesman
;!:FK
on 3urability
;!:FK
on Repairable )ld #achinery s r o t c a =
F8!8FK
@ih Price
6
Hery $ess 3emand in #arket ,hapes
;;!F:K
;!:FK
#ovement Problem
67!G5K
on Availability of ,pare parts
G!?7K
After ,ales ,ervice
G!?7K
8!<< 6
Percentae of 3ealers
on Repairable #achinery, on Availability of pare Parts, @ih Price, #ovement Problem, Hery $ess 3emand in #arket and After ales ervice are some of the major factors, which dealers of orth 3elhi don-t like about "ata motors!
;;!FG K of the total (ar dealers said that there is nothin in "ata motors which they don-t like!
87
CENTRAL DELHI
68!F?K on Availability of ,pare Parts
G!:7K ;!8:K
@ih Price
6;!?;K G!:7K
s r o t c a =
$ack of Tuick Reaction Acc to #arket ;!8:K 3emand 8!6FK $ess 3emand
6G!78K 8!6FK FF!FFK
on Repairable (ars 68!F?K After ,ales ,ervice
6G!78K
68!<<
;
;8!<<
K K K Percentae of 3ealers
F
F8!<<
K
K
on Repairable #achinery, @ih Price, #ovement Problem, )ld #ovements and After ales ervice are some of the major factors, which dealers of (entral 3elhi don-t like about "ata motors!
:<
TOTAL AREA COVERED
on Repairable #achinery, @ih Price, #ovement Problem, after sales service are some of the major factors, which dealers don-t like about "ata motors!
:6
CHAPTER @ FACT AND FINDINGS
In orth 3elhi 8G!65 K of the total (ar dealers have monthly sales volume in units less than 6<< and ;
In est 3elhi :8!?6 K of the total (ar dealers have monthly sales volume in units less than 6<< and :!8G K of the total (ar dealers sell more than F<< (ars on averae every month!
)verall in the covered area most of the (ar dealers are small sellin less than 6<< (ars a month! @owever data in the sales value terms would have iven even better idea!
In (entral 3elhi 5?!GF K of the total (ar dealers have monthly sales volume in units less than 6<< and ;8!:5 K of the total (ar dealers sell more than F<< (ars on averae every month!
In (entral 3elhi the penetration level of "ata #otor is better than that of orth and est 3elhi!
In est 3elhi the penetration level of "ata is slihtly better than that of orth 3elhi!
In the total area covered "ata #otor penetration level or reach is comparable at all to its competitors #aruti, @yundai and "oyota!
In (entral 3elhi most of the dealers said that each brand is e%ually easily available
In est 3elhi most of the dealers said that each brand is e%ually easily available!
Almost all the brands are available to the dealers at e%ual ease in the total area covered!
:;
CHAPTER ' RECOMMENDATIONS It was reat opportunity for me to do my internship from "ata #otor!
I ot a project which ave me the opportunity to meet the various people in the corporate world! I could understand the workin culture of corporate as well as overnment offices! Before this I never visited such bi orani9ations!
#akin plan for the ne>t day and findin the concern department and person allowed me to increase my communication ability, written as well as verbal!
#y confidence to meet people has tremendously one up! "oday I have that much confidence that I can meet to any bi person in any orani9ation!
#y boss also helped me very much to learn about corporate world! @ow to prepare the proposals and how to ive the company offer all I learnt from my boss!
I also attended the customer demonstration which ave me the knowlede about how the customer can be convinced, how there %ueries are handled!
I also learnt very small1small thins in the orani9ation which is very necessary in any flat orani9ation like photocopyin. =a> the document which I never know before!
=irstly, the Indian consumers did not et liberty to choose their likins. secondly, they were deceived and frustrated by the available inferior oods and ended up payin premium, the money could have saved and could have spent well, =inally, when the market opened for outsiders, the local 0maharajas0 ot hit and could not revamp their products to woo their lon deceived consumers! "he forced brand loyalty, which created throuh lack of competition, would not work anymore! "ake e>ample, "A"A is a household brand in Indian soil, could not induce people to buy 0I3I(A0 car which faced initial set back resulted the "A"A #otors ended up with a hue loss of around Rs!8<< cr and now, its revamped model is takin place in araes of the taret roup! "he morale learned from the above e>ample is that consumers would not buy brands blind fold! "hey would evaluate the brands throuh their performance, such as to satisfy the e>pectations of users! :F
"he brand loyalty would be ained throuh the willinness of consumers to buy or influence their peer roup from one brand albeit many substitutes available! Unfortunately, the present market trends are not very encourain to e>ercise and maintain brand loyalty! "he fact is that the invasion of more brands in the market arena facilitates potential users to have wide bou%uet of choices to choose with! #oreover, present economic condition in the country made people to become more price sensitive! Also, potential users would aue the %uality of a product/service throuh the satisfaction derived from the formed for the price they paid for! "hese factors have tremendous influence on breakin of brand loyalty! Det, brand is a livin thin would always fiht to et the top of minds of consumers facilitate their buyin decision! S*/0+430 7 +43 +1/ S++/6 8843 + +1/ S//3++43
6! "A"A #otors should increase the dealerships / channel partners for the rural marketin! In case of non viability should force the old dealerships to open abranch increase the market share in that market! ;! $are rane of products is increasin the ap b/w supply demand! "A"A #otors should standardi9e the products! Product should be available at the time of demand, sales marketin should be pro active should plan before the demand by estimations! F! After sales service not satisfactoryC Almost every customer complained of the unsatisfactory after sales service bein provided by the service stations of the company! 'ither these people do not deliver the vehicle on time or they hesitate to provide on1route service! "his type of behaviour causes a feelin of bein inored inside the customers mind! )n the other hand, (ustomers are very satisfied with the after sales service bein offered by Ashok $eyland! $eyland is very ood in providin )n1Route service which is very important for customer satisfaction! "A"A #otors should make ;5LG service point one in each district! 5! "erritory InfrinementC division of the territories of the dealership is not properly done and also the company does not take any action aainst the practice of territory infrinement! @ence it becomes difficult for some dealers to manae the customers in their territory and also it de1motivates them! "his affects the sales of the product in a major way! "he "erritory Infrinement should imposed on dealership stronly!
:5
8! $ack of spare partsC certain bus fleet operators complained of paucity of spare parts with the sales office! "he spare parts how so ever small they may be were not available at certain times which led to the loss of revenue bein enerated by the bus on daily basis! :! on1 availability of productC Bus fleet operators are not ettin delivery of the product asked by them because of the non1availability of the products with the dealer! In that case after waitin for some time customers moved to competitors Product! "his comes as a cause of major concern because the actual sales of that particular product suffered leadin to loss of revenue for the orani9ation! G! Product ImprovementsC "ill now only few models are comin with radial tyres as standard fitments! eed to work on automatic transmissions, (ommon rail 'nines many more technoloy advancements
:8
CHAPTER ' CONCLUSIONS & IMPLICATIONS "A"A motors will be able to establish itself in the &erman market throuh the use of Holkswaen-s brand name and identity! Both "A"A motors and Holkswaen can make use of the joint venture to satisfy their oals which is to provide affordable car products! Both "A"A motors and Holkswaen can make use of the joint venture to compare and share production, control and maintenance strateies! "A"A motors will need to use technoloy transfers to make sure that only the important information will be ac%uired from Holkswaen! "echnoloy transfers will ease any difficulty in ac%uirin the needed manufacturin strateies to con%uer the &erman #arket! Holkswaen can share the manufacturin strateies it has to "A"A motors so that it will achieve a relative success in the &erman market! "hrouh the planned joint venture with Holkswaen, the oal of internationali9ation will be an easier task for "A"A motors! 2oint Henture also speeds up the adjustment process of "A"A motors =or "A"A motors to achieve a ood status in the &erman #arket it need to maintain and improve its production chain so that it will not cause other problems! "A"A motors needs to make sure that it continue to interrelate with automotive companies that have been in &ermany for a lon time so that it can adjust to trends in that country and maintain its competitiveness in that market! "A"A motors needs to maintain and continually improve its policies on personnel so that they will be motivated to create products that people will buy! $astly "A"A motors needs to make sure that the future products will be compatible to chanin demands of the environment! "he person is very difficult to understand because it has many factors involved in it! A marketin stratey ales and 3istribution etwork of "ata #otor is also intended to increasinly influence and shape consumer satisfied!?GK (ompanies make marketin stratey to influence e>chanes of consumer behavior to achieve orani9ational objectives! (ar1buyin preferences are mainly based on the customer0s cultural backround but in this case of "ata car satisfied has come up throuh lare number of "ata users as a friend ac%uaintances there feedback has emered as prominent buyin decision! ::
(onsumers also differ in terms of their pre1purchase information search, they more likely to consult a reference roup member especially friends and family, and also conduct e>tensive automobile research prior to their purchase! Althouh consumers were value1 conscious and appeared to be more concerned with price rane and discounts available on the cars! Also their previous e>periences also help them to decide on what kind of cars and brand names they wished to purchase! Based on findins, a number of implications were come forward! =irst, "ata #otor dealers should be aware that customers from different cultural backrounds respond and process differently! "he types of messaes delivered to each roup and the media selected should be carefully considered! #oreover, it appears that roup-s defined value differently! Auto, "op ear etc! •
As the result shows that customer et major information form electronic media and then comes to the news papers and to the maa9ines so "A"A has to concentrate on the electronic media like internet that is in web sites like indiacar!com, and the maa9ines like "op ear, Auto etc!
•
In the ads the more emphasi9e has to iven on the new features in the car as they will attract the customers! "he advertisement should be so made so that it should be match with the features!
•
In the ad all the contact numbers of the all the dealers and the address in their city has to mention!
•
In the ads,it is very essential to mention the financin details, like the banks which were providin the loan facility and etc!
It should also consider on which elements of the value proposition11price, service, %uality, and imae1they wish to focus, based on cultural preferences! ow day-s companies bein doin business in the JInternet economy,J brand imae is still important and needs to be cultivated and protected properly! =irstly, the Indian consumers did not et liberty to choose their likins. secondly, they were deceived and frustrated by the available inferior oods and ended up payin premium, the money could have saved and could have spent well, =inally, when the market opened for outsiders, the local 0maharajas0 ot hit and could not revamp their :G
products to woo their lon deceived consumers! "he forced brand loyalty, which created throuh lack of competition, would not work anymore! "ake e>ample, "A"A is a household brand in Indian soil, could not induce people to buy 0I3I(A0 car which faced initial set back resulted the "A"A #otors ended up with a hue loss of around Rs!8<< cr and now, its revamped model is takin place in araes of the taret roup! "he morale learned from the above e>ample is that consumers would not buy brands blind fold! "hey would evaluate the brands throuh their performance, such as to satisfy the e>pectations of users! "he brand loyalty would be ained throuh the willinness of consumers to buy or influence their peer roup from one brand albeit many substitutes available! Unfortunately, the present market trends are not very encourain to e>ercise and maintain brand loyalty! "he fact is that the invasion of more brands in the market arena facilitates potential users to have wide bou%uet of choices to choose with! #oreover, present economic condition in the country made people to become more price sensitive! Also, potential users would aue the %uality of a product/service throuh the satisfaction derived from the formed for the price they paid for! "hese factors have tremendous influence on breakin of brand loyalty! Det, brand is a livin thin would always fiht to et the top of minds of consumers facilitate their buyin decision!
:?
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G<
