Summer Internship Report

Summer Internship Report On “TO STUDY THE CUSTOMER PERCEPTION TOWARDS TATA MOTORS & FACTORS SIGNIFICANT WHILE CHOOSING A FOUR WHEELER” By

Aamir Hamidi A0116209002 MBA-RM Class of 2011

Under the Supervision of

Dr. Himani Sharma Department of Marketing And Sales In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2010

1

AMITY UNIVERSITY UTTAR PRADESH AMITY BUSINESS SCHOOL

DECLARATION

I, Aamir Hamidi student of Masters Masters of Business Business Administratio Administration n from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on “To study the customer perception towards Tata Motors and factors significant while choosing a four wheeler” as part of the course requirement requirement .

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: 23/07/2010

Aamir Hamidi Enroll. No:A011620900

Place: Noida

MBA-RM Class of 2011

2


DECLARATION

I, Aamir Hamidi student of Masters Masters of Business Business Administratio Administration n from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on “To study the customer perception towards Tata Motors and factors significant while choosing a four wheeler” as part of the course requirement requirement .

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: 23/07/2010

Aamir Hamidi Enroll. No:A011620900

Place: Noida

MBA-RM Class of 2011

2

3


CERTIFICATE

I hereby certify that Aamir Hamidi students of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed Summer Internship on “To study the customer perception towards Tata Motors and factors significant while choosing a four wheeler”, under my guidance.

Dr. Himani Sharma Department of Marketing and Sales

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Acknowledgement

I am heartily thankful to all of them who helped me to achieve this project in Tata Motors. I got lots of support and inspiration from my mentor, Mr. Sanjeev Gulati (G.M). The support and guidance which my industry mentor provide cannot be expressed by words. I am also grateful to Dr. Himani Sharma, Faculty guide (ABS) for her guidance and support. I wish to express my sincere gratitude to her for providing me an opportunity to do the project. Lastly, I offer my regards to all of those who supported me in any respect during the completion of the project.

Aamir Hamidi Enroll no. A0116209002 MBA-Retail Management

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TABLE OF CONTENT

S.No.

Particular

Page No.

1.

Executive Summary

7

2.

Introduction

8- 23

3.

Literature Review

24- 29

4.

Research Methodology

30- 34

5.

Data Analysis & Interpretation

35- 67

6.

Findings, Conclusion & Recommendation

68-71

7.

Reference

72

8.

Annexure

73-77

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EXECUTIVE SUMMARY

During my training, project was “To study the customer perception towards Tata Motors and factors significant while choosing a four Wheeler”. In training I analyzed the differentiating factor and reasons that customers thinks before while purchasing a car and also why people choose Tata in comparison to other brands. I also went through various sales presentation and demonstration to know the selling process. And I learned how actual sale happen. For this purpose, a questionnaire was prepared & 100 respondents were approached to fill that questionnaire & select the factors which according to them should be kept in mind while choosing a four wheeler and what is the perception of consumers towards Tata Motors. The area covered under study was Delhi and NCR. The questionnaire took into account various factors that might be necessary for the prospective buyers. These were price, quality, pick up, fuel efficiency, brand image, engine, interior, spacious, free accessories, AC, wheelbase, power steering, power window, airbags, after sale services and many other things. Therefore, the project comprises of both primary as well as the secondary data. Primary data here refers to the questionnaire & the analysis made whereas the secondary data comprises of the information gained from the company’s official website & the other published sources. After receiving all the filled questionnaires, the same were analyzed using simple analytical tools such as tables & graphs. Once, the analysis was complete, it was clear which all factors were of utmost important to the customers & w hich were the least ones. Hence, it can be said that the objective of the project was completely achieved.

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Chapter 1- Introduction

8

History of Automotive Industry in India

In 1953, the government of India and the Indian private sector initiated manufacturing processes to help develop the automobile industry, which had emerged by the 1940s in a nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry continued to grow at a slow pace due to the many government restrictions. A number of Indian manufactures appeared in 1970-1980. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. Timeline of Indian automobile industry: 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company, Mumbai 1901 First Indian to own a car in India – Jamshedji Tata 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata 1905 Fiat Motors 1911 First Taxi in India 1924 Formation of traffic police 1928 Chevrolet Motors 1942 Hindustan Motors 1944 Premier Auto Limited 1945 Tata Motors 1947 Mahindra Motors

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1948 Ashok Motors 1948 Standard Motors 1974 Sipani Motors 1981 Maruti Suzuki 1994 Rover Motors 1994 Mercedes Benz 1994 Opel 1995 Ford Motors 1995 Honda SIEL 1995 Reva Electric Car Company 1995 Daewoo Motors 1996 Hyundai Motors 1997 Toyota Kirloskar Motors 1997 Fiat Motors (Re-Entry) 1998 San Motors 1998 Mitsubishi Motors 2001 Skoda Auto 2003 Chevrolet Following the economic reforms of 1991, the automobile section underwent delicensing and opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and purchasing power led to growth in the Indian automobile industry, which grew at a rate of 17% on an average since the economic reforms of 1991. The industry provided

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employment to a total of 13.1 million people as of 2006-07, which includes direct and indirect employment.

History of Tata Motors Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1935 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy. In 2004 it acquired Tata Daewoo Commercial Vehicle, and in late 2005 it acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. It has formed a joint venture with Marcopolo of Brazil, and introduced low-floor buses in the Indian Market. Recently, it has acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names.

Expansion After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors 11

also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors.

Joint ventures

Tata Marco Polo released this low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Bangalore and Lucknow Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Delhi, Mumbai, Lucknow and Banglore transport corporations. Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. Tata Motors sells Fiat cars in India and is looking to extend its relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with many small companies in various countries around the world.

Important Development Tata Nano

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In January 2008, Tata Motors launched Tata Nano, the least expensive production car in the world at about Rs. 1,00,000 (US $2,500). The city car was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Tata has faced controversy over developing the Nano as some environmentalists are concerned that the launch of such a low-priced car could lead to mass motorization in India with adverse effects on pollution and global warming. Tata has set up a factory in Sanand, Gujarat and the first Nano are to roll out summer 2009. Tata Nano Europa has been developed for sale in developed economies and is to hit markets in 2010 while the normal Nano should hit markets in South Africa, Kenya and countries in Asia and Africa by late 2009. A battery version is also planned. Tata has also been approached by a province in France named Moselle to setup Tata Nano manufacturing plant.

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Vision And Mission Statement

Vision “To evolve into a world class Indian car brand”

Mission “To provide passenger vehicles that offer customers exceptional value, and through this build a company that provides its shareholders with superior returns, and is seen by society and other stakeholders as a valuable contributors to their developments”

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Tata Motors Profile Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 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 indeed cuts across the length and breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, 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. 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

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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, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its

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tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimise weight, which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

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Manufacturing

Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolutiondesign, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North. Jamshedpur:

Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab & Cowl Factories.

Pune:

The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tool making facilities in the Indian sub-continent.

Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market.

Uttarakhand

The company has set up a plant for its mini-truck Ace and the passenger carrier Magic (based on the Ace platform) at Pantnagar in Uttarakhand. This is the company's fourth plant, after Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger

18

vehicles) and Lucknow (commercial vehicles). The plant is spread over 953 acres, of which 337 acres is occupied by the vendor park.

Joint Venture, Subsidiary and Associate Companies

Tata Motors has several joint venture, subsidiary and associate companies: Jaguar Land Rover Tata Technologies Ltd. (TTL) and its subsidiaries Telco Construction Equipment Co. Ltd. (Telcon) HV Axles Ltd. (HVAL) HV Transmissions Ltd. (HVTL) TAL Manufacturing Solutions Ltd. (TAL) Sheba Properties Ltd. (Sheba) Concorde Motors (India) Ltd. (Concorde) Tata Daewoo Commercial Vehicle Company Ltd (TDWCV) Hispano Carrocera S. A. (HC) Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL) Tata Motors European Technical Centre plc Tata Motors Finance Limited Tata Motors Thailand Tata Marcopolo Motors Ltd (TMML) Tata Motors(SA) Proprietary Ltd (TMSA) TML Distribution Company Ltd (TDCL)

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Products of Tata Motors (Passenger vehicle)

Tata Indica Vista

Tata Indigo Manza

20

Tata Indigo CS

Tata Safari

21

Tata Nano

22

Preamble of research PURPOSE OF STUDY

The purpose of study is to understand the customer perception towards Tata Motors and to get a deep insight into the various influencing factors significant while choosing a four wheeler.

OBJECTIVE OF THE STUDY •

To analyze the customer perception towards Tata Motors.

•

To analyze the important factors while choosing a four wheeler.

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Chapter 2- Literature Review

24

Conceptual framework

Background

Consumer Perception Customer perceptions are what indicate whether you have achieved satisfaction or not. In other words, they represent stepping stones along a continuum. Perceptions accumulate over time and gradually equate to either satisfaction or dissatisfaction. You job is to understand and act on these perceptions so the final result is customer satisfaction.

The word ‘perception’ was used in ISO 9001, in my opinion, to highlight just how subjective this quality is. Perceptions can comprise just about anything: fact, fiction, fantasy, whatever. If customers believe their perceptions, though, the perceptions have the weight of fact. That is why it is so important to reach out to customers and specifically ask them what they think. By their very nature, you probably won’t agree with all the perceptions. A perception equals fact in the mind of the customer, though. You must act on these perceptions and let the customer know what you’ve done. Customer perceptions are influenced by a variety of factors. Besides the actual outcome – i.e. did the product or service deliver the expected function and did it fulfil the customers need – the whole process of consumption and all interactions involved are of crucial importance. In today’s globalize information driven economy this can also comprise issues like How other customers or influencing groups perceive the product or brand The degree to which the customer feels the actual marketing campaign addresses the most important issues Responsiveness and service quality of any affiliates, e.g. distribution partners

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Customer perceptions are dynamic. First of all, with the developing relationship between customer and company, his perceptions of the company and its products or services will change. The backbone of any customer perception management and measurement system, however, is thorough market research and surveys.

•

Before purchasing a product customer consider many factors hence the decision making process is given below:

THE DECISION PROCESS CAN BE DIVIDED INTO FIVE STAGES: 1. Problem Recognition

This occurs when the buyer notices that there is a difference between the desired state and the actual conditions. The consumer gets aware that he has to change something to get satisfied. For example, the person recognizes that there is a difference between the desired state (a working mobile) and the actual condition ( a broken mobile). 2. Information Search

After receiving the problem, the buyer searches for information about a new product that can solve his problem and also will be able to satisfy his needs. Here we can distinguish two aspects to an information search: In the internal search buyer check first if they have any information about the needed product in their memory. If they cannot get enough information for their memory for a decision, they are looking for more information in an external search. In an external search the buyer may focus on communication with friends or relatives, to hear about

26

their experience with special brands. He also can obtain information from public sources like manufacturers, sales persons or product test organizations. 3. Evaluation of alternatives

To evaluate the products of which the buyer got information is looking for criteria to compare the products. These criteria are for example characteristics or features that the buyer wants (or does not want). The buyer also thinks about how important each criterion is because some features may carry more weight than others. This evaluation of consumer can be influenced by the marketer by framing the alternatives that means the manner how the marketer describes the products and their features. 4. Purchase

In this stage the consumer chooses the product or brand which he wants to buy. This selection is based on the result of the previous evaluation stage. There is also a set of criterions, which must be taken into account. One of the most important criterions is the product availability, which may influence which brand is purchased. If the favorite brand is not available at the moment the consumer may choose the brand that is ranked second. Other criterion that also could be important for the consumer is for example the price, delivery, guarantees, maintenance, agreements and installation and credit agreements. 5. Post Purchase Evaluation

After the purchase the buyer begins to check the product with actual performance meeting the expected level. In this stage many of the criteria used on the evaluating alternatives stage are used again. The result is either satisfaction or dissatisfaction.

•

Bill Brewer presents an original view of the role of conscious experience in the acquisition of empirical knowledge. He argues that perceptual experiences must 27

provide reasons for empirical beliefs if there are to be any determinate beliefs at all about particular objects in the world. This fresh approach to epistemology turns away from the search for necessary and sufficient conditions for knowledge and works instead from a theory of understanding in a particular area. •

Paul Rookes and Jane Wilson explain perception and perceptual processes in a way that almost anyone can understand. The study of perception, or how the brain processes information from the senses, has fascinated psychologists and philosophers for a long time. Perception takes the key research areas and presents the arguments and findings in a clear, concise form, enabling the reader to have a quick working knowledge of the area. This clear and informative text discusses sensation and perception then looks

at theories and explanations of perception. The way visual perception is structured is examined, followed by an analysis of the development of perceptual processes. The authors then consider individual social and cultural variations in perceptual organization. Perception will be particularly useful to students new to higher-level study. With it's helpful textbook features to assist in examination and learning techniques, it should interest all introductory psychology students.

•

To effectively communicate, we must realize that we are all different in the way we perceive the world and use this understanding as a guide to our communication with others. - Tony Robbins

•

It is our choice how we choose to see and perceive things. We always get to choose how we see a person, place or a situation. Our perception determines our experience. - Ryan Pearson

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•

Disability is a matter of perception. If you can do just one thing well, you're needed

by

someone. - Martina Navratilova

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Chapter 3- Research Methodology

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MARKET RESEARCH PROBLEMS

1. To study the customer Perception towards Tata Motors. Hypotheses

The perception of customers towards Tata Motors is good.

2.To study the factors significant while choosing a four wheeler with reference to Tata Motors.

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Research Method

Research is a collection and analysis of data gathered from a sample of individuals relating to their characteristics, behavior, attitudes or opinions (Market research society, 1998). Research objectives can be obtained or answered by using both primary and secondary-research. Collins (1985) further defines research as, “systematic investigation to establish facts or principles or to collect information on the subject” (p.1690). (Finn et

al., 2000) suggests that existing literature will benefit primary research and work as a framework for analysis; likewise research carried out will constantly review, modify and challenge the theoretical details.

Primary Research

Primary research (also called field research) involves the collection of data that does not already exist, which is research to collect original data. Primary Research is often undertaken after the researcher has gained some insight into the issue by collecting secondary data. This can be through numerous forms, including questionnaires, direct observation and telephone interviews amongst others. This information may be collected in things like questionnaires and interviews .

Secondary-Research

Secondary research includes data that has been previously collected and assembles for projects other than the one in hand (Zikmund, 1999). This method allows researchers to evaluate and identify gaps in literature with the help of various sources which further validates the proposal economically. It is relatively inexpensive as compared to primaryresearch and can be undertaken without going into the field.

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Primary data resources used Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents.

Secondary data resource used

Industry presentations and company database. Books , electronic resources.

Different forms of secondary-methods have been used to gather relevant data for study which can further be analyzed to make appropriate implications and achieve the objectives. This includes topics that have been discussed covering the subject area and has identified areas that need to be explored. However, there is a disadvantage of information being outdated as this industry is evolving at a rapid pace.

Data Collection Primary Data

It is collected through questionnaire, and analysis is done with the SPSS software and MS Excel. Secondary Data

These are collected through websites, company database, and company reports.

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Research Design

The research design here used is descriptive research. Descriptive research , also known as statistical research , describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what , where, when and how.

Sampling method

Non Probability Sampling This includes the personal judgment of the researcher rather than chance to select sample elements. The researcher can arbitrarily or consciously decide what elements to include in the sample. Non probability samples may yield good estimates of the population characteristics. Commonly used non probability sampling techniques are: •

Convenience Sampling

•

Judgmental sampling

Scaling Technique

Scaling technique used here is Likert scale, and Q – sort scaling. Likert scaling involves a list of statements relating to attitude in question. In Likert scaling we can also check the degree of agreement and disagreement. Each degree of agreement and disagreement is given a score on a level of 1 to 5 or it can also be rated on at a scale of 1 to 5. Score is computed by summing up these scores from all the statements. Q – sort scaling, a scaling technique that uses a rank order procedure to sort objects, based similarity respect to some criterion.

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Chapter-4 Data Analysis

35

Keeping in mind the pre- requisites of the research, the research survey was done for 150 respondents. These belong to different age groups and professions.

Question 1 Which vehicle do you own ?

options

no. of respondent

(a) Maruti

28

(b) Tata

22

(c) Hyundai

32

(d) chevrolet

6

(e) Honda

8

(f) other

4

current vehicle which customer own s t n e d n o p s e r f o . o n

35 30 25 20 15 10 5 0

no. of respond

i a t i t a a e r l e t u d a r d h o n t T o o v r u n M a ) H e y b ) f ) ( ( h a e ) ( ( c H ) c d ( options

Chi-square test

36

Frequencies

Maruti Observed N

Expected N

Residual

no

72

50.0

22.0

yes

28

50.0

-22.0

Total

100

Observed N

Expected N

Residual

no

78

50.0

28.0

yes

22

50.0

-28.0

Total

100

Observed N

Expected N

Residual

no

68

50.0

18.0

yes

32

50.0

-18.0

Total

100

Tata

Hyundai

37

Chevrolet Observed N

Expected N

Residual

no

94

50.0

44.0

yes

6

50.0

-44.0

Total

100

Observed N

Expected N

Residual

no

92

50.0

42.0

yes

8

50.0

-42.0

Total

100

Observed N

Expected N

Residual

no

96

50.0

46.0

yes

4

50.0

-46.0

Total

100

Honda

Other

38

Test Statistics maruti

tata

hyundai

chevrolet

honda

other

Chi-Square

19.360a

31.360a

12.960a

77.440a

70.560a

84.640a

df

1

1

1

1

1

1

Asymp. Sig.

.000

.000

.000

.000

.000

.000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 50.0.

Question 2 Which fuel option of Tata vehicle you want to purchase?

options

no. of respondents

Diesel

70

Petrol

30

39

fuel option of Tat vehicles customer want to purchase 80 s t 70 n e 60 d n 50 o p 40 s e r 30 f o . 20 o n 10 0

no. of responde

Diesel

Petrol options

Chi-Square test Frequencies

Diesel Observed N

Expected N

Residual

no

30

50.0

-20.0

yes

70

50.0

20.0

Total

100

40

Petrol Observed N

Expected N

Residual

no

70

50.0

20.0

yes

30

50.0

-20.0

Total

100

Test Statistics diesel

petrol

Chi-Square

16.000a

16.000a

df

1

1

Asymp. Sig.

.000

.000

a.

(.0%)

0

cells

have

expected

frequencies less than 5. The minimum expected cell frequency is 50.0.

41

Question 3 what are the options you are looking in Tata?

Options (a) Indigo

no. of respondents Manza

38

(b) Indica Vista

20

(c) Indigo CS

24

(d) Safari

16

(e) nano

2

options customer looking in Tata 40 s 35 t n e d n o p s e r f o . o n

30 25 20 15

no. of responde

10 5 0 (a) Indigo (b) Indica c Indigo (d) Safari (e) nano Manza Vista CS options

42

Chi-Square Test Frequencies

indigo_manza Observed N

Expected N

Residual

no

62

50.0

12.0

yes

38

50.0

-12.0

Total

100

Observed N

Expected N

Residual

no

79

50.0

29.0

yes

21

50.0

-29.0

Total

100

indica_vista

43

indigo_CS Observed N

Expected N

Residual

no

74

50.0

24.0

yes

26

50.0

-24.0

Total

100

Observed N

Expected N

Residual

no

84

50.0

34.0

yes

16

50.0

-34.0

Total

100

Observed N

Expected N

Residual

no

98

50.0

48.0

yes

2

50.0

-48.0

Total

100

safari

nano

44

Test Statistics indigo_manza

indica_vista

indigo_CS

safari

nano

Chi-Square

5.760a

33.640a

23.040a

46.240a

92.160a

df

1

1

1

1

1

Asymp. Sig.

.016

.000

.000

.000

.000


Question 4 Kindly rate the features of Tata vehicles. Particulars

poor

average

Good

very good

Best

Looks of the vehicle

0

6

66

16

12

Interiors of the vehicle

0

8

66

20

6

Leg space

0

8

30

50

2

Boot space

0

12

20

58

10

seat comfort

1

18

48

25

8

45

pick up

0

24

42

26

8

operations

0

26

46

18

10

overall evauation

0

4

66

22

8

featurs of tata vehicle

s t n e d n o p s e r f o . o n

70 60 50 40 30 20 10 0

poor averag good very go best f o e l c s e i k h h t o e o v L

e c a p s g e L

t r t f o a e m s o c

s n o i t a r e p o

options

Z-Test

46

One-Sample Statistics N

Mean

Std. Deviation

Std. Error Mean

looks_of_vehicle

100

3.3400

.76831

.07683

interior_of_the_vehicle

100

3.2400

.68343

.06834

leg_space

100

3.6400

.82290

.08229

boot_space

100

3.6800

.83943

.08394

seat_comfort

100

3.1600

.88443

.08844

pick_up

100

3.1400

.94302

.09430

operations

100

3.1200

.91320

.09132

over_all_evaluation

100

3.3600

.71802

.07180

One-Sample Test Test Value = 0 95% Confidence Interval of the Difference t

df

Sig. (2-tailed)

Mean Difference Lower

Upper

looks_of_vehicle

43.472

99

.000

3.34000

3.1876

3.4924

interior_of_the_vehicle

47.408

99

.000

3.24000

3.1044

3.3756

leg_space

44.234

99

.000

3.64000

3.4767

3.8033

boot_space

43.839

99

.000

3.68000

3.5134

3.8466

seat_comfort

35.729

99

.000

3.16000

2.9845

3.3355

pick_up

33.297

99

.000

3.14000

2.9529

3.3271

operations

34.165

99

.000

3.12000

2.9388

3.3012

over_all_evaluation

46.795

99

.000

3.36000

3.2175

3.5025

47

Question 5 What do you think most important things while purchasing a new vehicle?

Faster Pick up

48

Looks

Mileage

49

After sale service

Maintenance cost

50

Safety

Brand Value

51

Price

Z-Test

52


Mean

Std. Deviation

Std. Error Mean

faster_pick_up

100

3.6800

2.07379

.20738

looks

100

3.4400

2.27556

.22756

mileage

100

3.3600

2.13447

.21345

after_sale_service

100

4.5000

2.23155

.22315

maintenance_cost

100

5.7800

1.97244

.19724

safety

100

5.2800

1.98010

.19801

brand_value

100

5.3200

1.99434

.19943

price

100

4.6400

2.35067

.23507


df

Sig. (2-tailed)


Upper

faster_pick_up

17.745

99

.000

3.68000

3.2685

4.0915

looks

15.117

99

.000

3.44000

2.9885

3.8915

mileage

15.742

99

.000

3.36000

2.9365

3.7835

after_sale_service

20.165

99

.000

4.50000

4.0572

4.9428

maintenance_cost

29.304

99

.000

5.78000

5.3886

6.1714

safety

26.665

99

.000

5.28000

4.8871

5.6729

brand_value

26.676

99

.000

5.32000

4.9243

5.7157

price

19.739

99

.000

4.64000

4.1736

5.1064

53

Question 6 Tata vehicles are good at: Particulars

poor

average

good

very good

best

1. Price

0

4

68

18

10

2. Design

2

18

46

18

16

3. Mileage

4

8

32

48

8

4. interior space

2

10

30

36

22

54

5. safety

8

28

26

30

8

Tata vehicles are good at: 80 t n e d n o p s e r f o . o n

70 60

1. Price

50

2. Design

40

3. Mileage

30

4. interior spa

20

5. safety

10 0 poor

average

good

very good

best

options

Z-test


Mean

Std. Deviation

Std. Error Mean

price

100

3.3400

.71379

.07138

design

100

3.2400

1.05524

.10552

mileage

100

3.5200

.92638

.09264

interior_space

100

3.6600

.99717

.09972

safety

100

3.0200

1.10992

.11099

55


df

Sig. (2-tailed)


Upper

price

46.793

99

.000

3.34000

3.1984

3.4816

design

30.704

99

.000

3.24000

3.0306

3.4494

mileage

37.997

99

.000

3.52000

3.3362

3.7038

interior_space

36.704

99

.000

3.66000

3.4621

3.8579

safety

27.209

99

.000

3.02000

2.7998

3.2402

Question 7 The cost of ownership of a Tata vehicle: options

no. of respondent

very economical

2

economical

38

average

56

expensive

4

very expensive

0

56

cost of ownership s t n e d n o p s e r f o . o n

60 50 40 30 20 10 0

no. of respond

l l c a i c a i o m o m n n c o c o e e r y v e

e i v e i v e a g s s r n n e p e p e a v x x e e r y e v options

Chi-square test

Frequencies

very_economical Observed N

Expected N

Residual

no

98

50.0

48.0

yes

2

50.0

-48.0

Total

100

57

economical Observed N

Expected N

Residual

no

62

50.0

12.0

yes

38

50.0

-12.0

Total

100

Observed N

Expected N

Residual

no

44

50.0

-6.0

yes

56

50.0

6.0

Total

100

Observed N

Expected N

Residual

no

96

50.0

46.0

yes

4

50.0

-46.0

Total

100

average

expensive

58

very_expensive Observed N

Expected N

Residual

no

100

100.0

.0

Total

100a

a. This variable is constant. Chi-Square Test cannot be performed.

Test Statistics very_economical economical

average

expensive

Chi-Square

92.160a

5.760a

1.440a

84.640a

Df

1

1

1

1

Asymp. Sig.

.000

.016

.230

.000


59

Question 8 Do you think test drive is important before buying a vehicle?

options

no. of respondents

Yes

98

No

2

Test drive is important before buying veh icle 120 s t n e d n o p s e r f o . o n

100 80 60

no. of responde

40 20 0 Yes

No options

Chi-Square test Frequencies

60

Yes Observed N

Expected N

Residual

no

2

50.0

-48.0

yes

98

50.0

48.0

Total

100

Observed N

Expected N

Residual

no

98

50.0

48.0

yes

2

50.0

-48.0

Total

100

No

Test Statistics yes

no

Chi-Square

92.160a

92.160a

Df

1

1

Asymp. Sig.

.000

.000

a.

(.0%)

0

cells

have

expected


61

Question 9 What is the best thing you like about Tata? particulars

poor

Average

Good

very good

best

product desgn

4

12

66

12

6

Brand

2

0

42

42

14

product features

0

20

56

20

4

Service

4

22

60

14

0

maintenance cost

2

18

60

20

0

overall riding comfort

0

8

64

24

4

best thing customer like about Tata s t n e d n o p s e r f o . o n

70 60 50 40 30 20 10 0

n s g e t d c u o d r p

poor averag

e s r t u e a f t u c d o p r

n d a B r

t t e s o r c f i o c r v o m e e c c S a n n g i n d i t e l r i n a a m e r o v

good very go best

options

Z-Test

62


Mean

Std. Deviation

Std. Error Mean

product_design

100

3.0200

.81625

.08162

brand

100

3.6600

.79417

.07942

product_features

100

3.0800

.74779

.07478

service

100

2.8000

.69631

.06963

maintenance_cost

100

3.0000

.69631

.06963

overall_riding_comfort

100

3.2800

.69747

.06975


Df

Sig. (2-tailed)


Upper

product_design

36.999

99

.000

3.02000

2.8580

3.1820

brand

46.086

99

.000

3.66000

3.5024

3.8176

product_features

41.188

99

.000

3.08000

2.9316

3.2284

service

40.212

99

.000

2.80000

2.6618

2.9382

maintenance_cost

43.084

99

.000

3.00000

2.8618

3.1382

overall_riding_comfort

47.027

99

.000

3.28000

3.1416

3.4184

Question 10 Do you recommend Tata vehicle to your friends and relatives?

63

options

no. of respondents

Yes

92

No

8

Recommend Tata vehicle to others 100 90 s t 80 n e 70 d n 60 o p s 50 e r 40 f o 30 . o 20 n 10 0

no. of responde

Yes

No options

Chi-Square Test Frequencies

Yes Observed N

Expected N

Residual

no

8

50.0

-42.0

yes

92

50.0

42.0

Total

100

64

No Observed N

Expected N

Residual

.00

92

50.0

42.0

1.00

8

50.0

-42.0

Total

100

Test Statistics yes

no

Chi-Square

70.560a

70.560a

Df

1

1

Asymp. Sig.

.000

.000

a.

(.0%)

0

cells

have

expected


65

Chapter 5Findings, Conclusion And Recommendation

Findings •

Most of the customers are using Hyundai brand. Now they shifting from Hyundai to Tata, after Hyundai Maruti brand is used by the customers and after it Tata is used by the customers, it shows that they are using Tata and again they are opting for Tata vehicle.

•

Mostly customers opt for diesel engine rather than petrol engine in Tata vehicles.

66

•

Now a days the most demanded car of Tata is Indigo Manza because of its features at economical prices, secondly Indigo CS because recently it launched eseries with advanced engine and new features.

•

Customers rate the features of Tata vehicle and according to them the looks of the vehicle are good, interior are good, the leg space is very good, boot space is again very good, seat comfort is good, pick up is good, the operations are good, and last but not the least the overall evaluation is good.

•

According to customers the important things while purchasing a new vehicle is its mileage, looks and the least important is the brand value, this shows that customer see product not the brand , the product should be good doesn’t matter what the brand is.

•

According to the customers the Tata vehicle are good at its price, design and very good at its mileage, interior space and safety.

•

The cost of ownership of a Tata vehicle is average, not too high and not too low.

•

98% of customers think that test drive is important before p urchasing a vehicle.

•

The best thing customers like about Tata vehicles is its design are good, Brand is very good, the features of the product are good, the service they provide is again good, maintenance cost is good, and finally the riding comfort is good.

•

92% of the customers said they will recommend the Tata vehicle to others.

Conclusion

To study the customer Perception towards Tata Motors. Hypotheses

Ho: The perception of customers towards Tata Motors is good.

67

Ha: The perception of customers towards Tata Motors is not good.

According to the data available and analysis it is clearly observe that : Alternate hypothesis is rejected.

The factors significant while choosing a four wheeler are Mileage and looks which customer prefer as important and things, the thing which is least important is brand value. And, another thing that is test drive is also consider very important before choosing a four wheeler.

Most of the respondents think Tata vehicles are good at overall basis and in case of specific things like the interior space it is very spacious , the leg space is also spacious, if we talk about safety the Tata vehicle’s come under European safety norms. Tata Motors is using the same quality of paint which Mercedes Benz is using.

Recommendation

•

More offers should be provided to customers.

•

Car delivery time should be less.

68

•

The plastic quality should be improved in Tata cars .

•

More test drives should be offered.

References Books

Naresh K. Malhotra, “Marketing Research” Philip Kotler, “ Marketing Management” Leon G. Schiffman, “Consumer Behaviour”

69

Bill Brewer, “Perception and Reason” Perception Theory, Development, and Organization, “Paul Rookes, Jane Willson” Websites

www.tatamotors.com www.themanager.org/marketing/Customer_Perception.htm www.carwala.com http://elsmar.com/Forums/showthread.php?t=10730 www.gaadi.com www.articlesbase.com/article-tags/perception Others

Company’s brochures and presentations Article: Choose Your Perception to Create Your Reality

70

Annexure

QUESTIONNAIRE NAME: _________________________________________ GENDER:

Male

Female

Age: _____ years ADDRESS: _______________________________________

71

OCCUPATION:____________________________________ CONTACT NO.: ___________________________________

QUESTIONS

1. Which vehicle do you own?

(a) Maruti ____________

(b) Tata_______________

(c) Hyundai___________

(d) Chevrolet___________

(e) Honda_____________

(f) other ______________

Year of manufacture:________________

2. Which fuel option of Tata vehicles you want to purchase? (a)

Diesel

(b) Petrol

3. What are the options you are looking in Tata? (a) Indigo Manza

(d) Safari

(b) Indica Vista

(e) Nano

(c) Indigo CS

4.Kindly rate the features of Tata vehicle. 1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best 1 •

Looks of the vehicle

•

Interiors of the vehicle

2

3

4

5

72

•

Leg Space

•

Boot Space

•

Seat comfort

•

Pick up

•

Operations

•

Over all evaluation

4. What do you think most important things while purchasing a new vehicle?

(Rank from 1 to 8 , 1 most important and 8 least important ) (a) Faster pick up (b) Looks (c) Mileage (d) After sales service (e) Repair/Maintenance cost (f) Safety (g) Brand value (h) Price

5. Tata vehicles are good at: (Rate 1 to 5 ) 1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best 1. Price

73

2. Design 3. Mileage 4. Interior space 5. Safety

7. The cost of ownership of a Tata vehicle:

5 – very economical 4 – economical 3 – average 2 – expensive 1 – very expensive

5

4

3

2

1

8. Do you think test drive is important before buying a vehicle?

(a) Yes

(b) No

9. What is the best thing you like about Tata Motors?

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best 74

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