1. MANAGEMENT THESIS ON“Repositioning Strategy of Tata Motors and its acceptance level in customer A study in Rourkela Market” By (PRANAB MISHRA) MBA 2008-2010
2. MANAGEMENT THESIS ON“Repositioning Strategy of Tata Motors and its acceptance level in customer A study in Rourkela Market” By (PRANAB MISHRA) (INC Rourkela) A report submitted in partial fulfillment of the requirements of THE MBA PROGRAM (The Class of 2010)
3. DECLARATION CERTIFICATEThis is to certify that the Management Thesis titled “Repositioning Strategy of Tata Motors andits acceptance level in customer - A study in Rourkela Market” submitted during Semester (IV)of the MBA Program (The Class of 2010) embodies original work done by me.Signature of the StudentName (in Capitals) : PRANAB MISHRAEnroll Number : 8NBRU032Campus : INC ROURKELA Signature of the Faculty Supervisor Name (in Capitals) : MRS. ASMITA JHA Designation : HR FACULTY Campus : INC ROURKELA
4. TABLE OF CONTENTS1. Acknowledgements.2. Introduction3. Objectives.4. Limitations.5. Research Methodology.6. Results and analysis7. Findings.8. Conclusions.9. Appendices.10. References.
5. ACKNOWLEDGEMENTSAny accomplishment requires the effort of many people and this work is not different. I amthankful to my faculty supervisor Mrs. Asmita Jha for supporting me and guiding methroughout the project. This report would not have been possible without her help. I would alsolike to express my gratitude towards Mr. Bishan Singh, INDERA MOTORS, Rourkela for hiscooperation and giving his valuable time and information for my thesis preparation.I am equally thankful to the Principal, INC Rourkela, Mr. D. P. Das for encouraging me andinspiring me to do my project with full dedication. PRANAB MISHRA
6. INTRODUCTIONThe rapid pace of change and intense competitive pressure in todays marketplace demand thatbrands continuously innovate and reinvent themselves to maintain their relevance and marketposition. In this context, brand repositioning and other revitalization strategies have become abusiness imperative for battling brand erosion. The appeal of brand repositioning is furtherheightened by the rising costs and high risk associated with launching a new brand.Brand repositioning has received little attention in the marketing literature and has mostly beentreated as a variation of brand positioning. Biel, for example, has defined brand positioning as"building (or rebuilding) an image for a brand". The goal of positioning and repositioningstrategies relates to the management of consumers perceptions. However, positioning focuses onthe creation of brand associations - consumers perceptions of the attributes that differentiate thebrand from competitive offers – while repositioning also implies managing existing brandassociations. The unique challenge of a repositioning strategy, thus, lies in rejuvenating the brandimage to make it relevant in an evolving environment, while honoring the brand equity heritage.Repositioning can be required as the market changes and new opportunities occur. Throughrepositioning the company can reach customers they not intended to reach in the first place. If abrand has been established at the market for some time and wish to change their image they canconsider repositioning, although one of the hardest actions in marketing is to reposition afamiliar brand.According to Solomon, position strategy is an essential part in the marketing efforts becausecompanies have to use the elements in the marketing mix to influence the customersunderstanding of the position. During the movement from something less attractive and relevanttowards a more attractive and relevant position several of strategic choices has to be made. Theones responsible for the repositioning have to evaluate why a reposition is necessary, and if theoffer is the one who will change or just the brand name. There are several risk factors that haveto be taken into consideration when preparation for a repositioning of the offering or the brand.During repositioning, the risk of losing the credibility and reliability is high and the need for athorough strategy is therefore necessary to avoid this occurrence. Some analyst argue that tosuccessfully reposition a establish brand name is almost impossible because repositioning of abrand can make the most loyal customer to switch brand. But, in some circumstances arepositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition is inquestion it has to be of relevance from a customer perspective, is this achievable? Some brandswill on no account be thought on as a luxury brand and therefore an attempt to reposition willonly damage the brand image or the actual company.Numerous failed attempts at brand repositioning testify to the difficulty of developing andimplementing such a tactic. For example, while the soft drink brand, Mountain Dew hasremained relevant to the youth market through continuous repositioning in its thirty years ofexistence, Levis Jeans has been losing market share to newcomers such as The Gap, despitenumerous campaigns designed to reposition the brand as trendy.
7. The strategic importance of brand repositioning in preserving and enhancing brand equity,coupled with the mixed results of repositioning attempts, underscores the need to develop abetter understanding of the dynamics of brand repositioning. Specifically, questions of whether,when and how brands should be repositioned need to be addressed. Research into brandrepositioning is relevant not only to the development of brand management theory, but alsoextends to corporate strategy through an examination of corporate brands. Indian Automobile IndustryThe automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percentover the past five years, the Economic Survey 2008-09 tabled in parliament on 2nd July’09 said.The industry has a strong multiplier effect on the economy due to its deep forward and backwardlinkages with several key segments of the economy, a finance ministry statement said.The automobile industry, which was plagued by the economic downturn amidst a credit crisis,managed a growth of 0.7 percent in 2008-09 with passenger car sales registering 1.31 percentgrowth while the commercial vehicles segment slumped 21.7 percent.Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti800 to latest M&M Xylo. The industry is highly competitive with a number of global and Indiancompanies present today. It is projected to be the third largest auto industry by 2030 and justbehind to US & China, according to a report. The industry is estimated to be a US$ 34 billionindustry.Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler &four wheeler segment. The domestic two-wheeler market is dominated by Indian as well asforeign players such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc.Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country. AndIndia is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market iscatered by players like Tata Motors, Ashok Leyland, Volvo, Force Motors, Eicher Motors etc.The major players have not left any stone unturned to be global. Major of the players have gotinto the merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero withHonda, Tata with Fiat, Mahindra with Renault, Force Motors with Mann.Key Facts:• India ranks 12th in the list of the worlds top 15 automakers• Entry of more international players• Contributes 5% to the GDP• Production of four wheelers in India has increased from 9.3 lakh units in 2002-03 to 23 lakhunits in 2007-08• Targeted to be of $ 145 Billion by 2016• Exports increased from 84,000 units in 2002-03 to 280,000 units in 2007-08
8. OBJECTIVES• To understand the market potentiality for TATA Motors.• To determine the acceptable price of the product.• To determine the requirements and needs of the potential customers.• To know what people perceive and thinking about Tata Motors and its products.• To analyze the brand repositioning strategies of Tata Motors.• To study consumer awareness and perception about the brand repositioning strategies of Tata Motors.• To find out the satisfaction level of people.• To find out the awareness level of customer.• To find the satisfaction amongst the customers of TATA Motors.
9. LIMITATIONS• The study is confined to Rourkela area only.• There is possibility of sampling errors in the study.• The responses of the consumers may not be genuine.• The questions included in the questionnaire may not be comprehensive.• Continuous and reliable information was not available.• Some of the information was confidential so much information was not revealed.• The time span of the survey was short and hence only major aspects were considered.• Information provided by the respondent in terms of their fuel usage and their expense could not be very accurate.• Availability of the respondents amidst their busy schedule did not permit detailed study.• This study will be limited to only some areas of Rourkela.• Lack of professional approach since researcher is a student.• The sample size is only 50 so the sample may not be truly representative of the Rourkela population.
10. COMPANY PROFILETATA MOTORS LIMITEDTata Motors Limited is Indias largest automobile company, with consolidated revenues ofRs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles ineach segment, and among the top three in passenger vehicles with winning products in thecompact, midsize car and utility vehicle segments. The company is the worlds fourth largesttruck manufacturer, and the worlds second largest bus manufacturer.The companys 24,000 employees are guided by the vision to be "best in the manner in whichwe 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 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Thecompanys 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 withFiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars andFiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The companysdealership, sales, services and spare parts network comprises over 3500 touch points; TataMotors also distributes and markets Fiat branded cars in India.Tata Motors, the first company from Indias engineering sector to be listed in the New YorkStock Exchange (September 2004), has also emerged as an international automobile company.Through subsidiaries and associate companies, Tata Motors has operations in the UK, SouthKorea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the twoiconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo CommercialVehicles Company, South Koreas second largest truck maker. The rechristened Tata DaewooCommercial Vehicles Company has launched several new products in the Korean market,while also exporting these products to several international markets. Today two-thirds of heavycommercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motorsacquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, andsubsequently the remaining stake in 2009. Hispanos presence is being expanded in othermarkets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, aglobal leader in body-building for buses and coaches to manufacture fully-built buses and
11. coaches for India and select international markets. In 2006, Tata Motors entered into jointventure with Thonburi Automotive Assembly Plant Company of Thailand to manufacture andmarket the companys 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 inThailand in 2008.Tata Motors is also expanding its international footprint, established through exports since1961. The companys commercial and passenger vehicles are already being marketed in severalcountries 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 companys growth over the last 50 years is a deep understanding ofeconomic stimuli and customer needs, and the ability to translate them into customer-desiredofferings through leading edge R&D. With over 3,000 engineers and scientists, the companysEngineering Research Centre, established in 1966, has enabled pioneering technologies andproducts. The company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad inIndia, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the firstindigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in1998, the Tata Indica, Indias first fully indigenous passenger car. Within two years of launch,Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created anew segment by launching the Tata Ace, Indias first indigenously developed mini-truck.In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and theworld have been looking forward to. The Tata Nano has been subsequently launched, asplanned, in India in March 2009. A development, which signifies a first for the globalautomobile industry, the Nano brings the comfort and safety of a car within the reach ofthousands of families. The standard version has been priced at Rs.100, 000 (excluding VATand transportation cost).Designed with a family in mind, it has a roomy passenger compartment with generous legspace and head room. It can comfortably seat four persons. Its mono-volume design will set anew benchmark among small cars. Its safety performance exceeds regulatory requirements inIndia. Its tailpipe emission performance too exceeds regulatory requirements. In terms ofoverall pollutants, it has a lower pollution level than two-wheelers being manufactured in Indiatoday. The lean design strategy has helped minimize weight, which helps maximizeperformance per unit of energy consumed and delivers high fuel efficiency. The high fuelefficiency also ensures that the car has low carbon dioxide emissions, thereby providing thetwin 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 truckscalled Prima. In their power, speed, carrying capacity, operating economy and trims, they willintroduce new benchmarks in India and match the best in the world in performance at a lowerlife-cycle cost.
12. Tata Motors is equally focused on environment-friendly technologies in emissions andalternative fuels. . It has developed electric and hybrid vehicles both for personal and publictransportation. It has also been implementing several environment-friendly technologies inmanufacturing processes, significantly enhancing resource conservationThrough its subsidiaries, the company is engaged in engineering and automotive solutions,construction equipment manufacturing, automotive vehicle components manufacturing andsupply chain activities, machine tools and factory automation solutions, high-precision toolingand plastic and electronic components for automotive and computer applications, andautomotive retailing and service operations.Tata Motors is committed to improving the quality of life of communities by working on fourthrust areas – employability, education, health and environment. The activities touch the livesof more than a million citizens. The companys support on education and employability isfocused on youth and women. They range from schools to technical education institutes toactual facilitation of income generation. In health, our intervention is in both preventive andcurative 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 introducingappropriate technologies in our vehicles and operations for constantly enhancing environmentcare.With the foundation of its rich heritage, Tata Motors today is etching a refulgent future. HISTORY OF TATA MOTORSThe Company was incorporated on 1st September 1945 at Mumbai to manufacture dieselvehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings andmachine tools. The commercial diesel vehicles which were known `Tata Mercedes Benz (TMB)is now called `Tata vehicles after the expiry of the collaboration agreement with Daimler-BenzAG, West Germany. The company also used to manufacture pulp and paper making machinery.In 1960 the companys name, which was Tata Locomotive & Engineering Company Ltd. waschanged to Tata Engineering & Locomotive Company Ltd. In the year 1987 the companyundertook to set up a new forge shop, a high output foundry line, a new paint shop as well asaugmentation of engine and gearbox manufacturing facilities, all at JamshedpurIn 1991 during the year the company entered into a collaborative agreement with aninternationally renowned engine research and development organization to jointly develop higherhorsepower, fuel efficient diesel and petrol engines to meet the future requirements of thecompany. The last quarter saw the company launching two new passenger vehicles, the SIERRAand the ESTATE totally designed and manufactured in India. The company acquired a BIFRcompany, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco worked out to Rs.18crores as against setting up of similar critical castings foundry. During the year companylaunched new earth moving equipment TWK-3036 Tata Front End Wheel Loader. Two new
13. models in the EX series of hydraulic excavators were launched. A 10 tonne pick and carryarticulated crane, designed and developed in-house was also introduced. During the yearcompany entered into an agreement with Nachi-Fujikoshi Corporation, Japan to manufacture arcand spot welding robots suitable for automobile manufacturing applications. During the year,company undertook to set up a joint venture with Asian Glass Co. Ltd., Japan to manufacturefloat glass to be used as wind shields for automobiles. ACC along with Tata Exports Ltd.participated in the joint venture. The joint venture named as Floathlass India Ltd., the Companywould have a stake of 16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata HolsetLtd., Tata Precision Industries, Singapore and Nita Company Ltd., are the joint Ventures of theCompanyTaking advantage of the broad banding policy announced by the Government of India, theCompany entered into a collaboration agreement with Honda Motor Co. Ltd., Japan, for themanufacture of their `ACCORD model of cars in India. On 22nd April, an agreement wasentered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a jointventure company Mercedez-Benz India to manufacture `E class paneyer cans and engines inIndia.During the year 1995 a new double pick-up and Army Version of various Telco Vehicles weredeveloped. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sportsutility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus withcummins engine were launched.Tata Engineering and Locomotive Company (TELCO), has acquired a second hand paint shop,machine line and cylinders from the Australian unit of the Japanese auto giant, Nissan. TELCOis believed to have picked up the unit for Rs. 70 crore. The total cost of import duty would be Rs100 crore. During the year a machine tool division was expanded so as to double its machinebuilding capacity and significantly reduce production times.The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. Tata Holsetsturbo charger plant inaugurated on November 25, 1996.In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) have emerged asnumerous uno in the Review 200 survey conducted by the Far Eastern Economic Review inassociation with Citi Bank. The Company introduced a 9-tonne vehicle which was well receivedin the market. A 40 tonne tractor trailer powered by a Tata Cummins Engineering wasintroduced. The Company developed a low floor bus chassis to meet the specific needs of urbantransport. The Company signed a new agreement with Hitachi for manufacture of upgradedversions of existing range of excavators.The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up withTata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car "Indica" tobe launched in December. Tata Engineering Locomotive Company Ltd (Telco) sold itsconstruction equipment business into a new subsidiary company, Telco Construction EquipmentCompany Ltd. The Company in its small car segment has launched "Tata Indica" which evoked
14. an overwhelming response in the Indian market. A new range of cummins engine poweredvehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses.To make substantial improvement in the quality of bus bodies available with TATA vehicles, theCompany encouraged collaboration between Fuji Heavy Industries of Japan and the AutomobileCorporation of Goa. The new project undertakes production of bodies on TATA chassis,conforming to the most exacting international standards. Concorde Motors Ltd., a Joint Venturebetween Tata Engineering and Jardine International Motors (Mauritius) Ltd. was appointed asdealer for the Companys passenger cars in several cities across the country, in Feb 1998.The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meetingeuro-I emission norms, a year before they are due to be introduced in the country. It is proposedto make TCECL a one-stop shop for construction equipment and earthmoving machinery. In Oct1999, the Company won the National award for R&D Efforts in Development of IndigenousTechnology in the Mechanical Engineering Industries Sector instituted by Department ofScientific and Industrial Research, Ministry of Science and Technology for the year 1999. SKFBearings India Ltd has signed an agreement with Telco to supply hub bearings for its latestmodelTata Indica.2000 saw the Company working towards introducing two new petrol-driven variants of its smallcar Indica, powered by a multi-point fuel injection engine. The Company launched the Indica2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. TheCompany has won the National Technology Award for indigenous development andcommercialization of the Tata Indica car. The Company has launched its new hi-tech Indica2000 car with MPFI petro engine in Guwahati.Tata Engineering & Locomotive Co. is renamed as Tata Engineering Ltd. It replaced its three-shift production line with a one-shift daily schedule starting from 26th June. In the same yearFICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to thecompany. The Central Pollution Control Board for Environmental Technology award has beenpresented to Tata Engineering in recognition of its contribution towards efforts to conserve theenvironment. TATA Engineering on September 10 announced the addition of MPFI petrolversion to the Indica V2 range.In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13.34% launchessix new products in light, medium and heavy vehicles segments on Jan 15 during Auto Expo.Announces financial restructuring. Displays its Tata Sedan car at the Geneva Motor Show.Indica adjudged top selling B-segment car in 2002.Launches two new motorsport cars (The Zeroand Double Zero Pace cars). High Court Approves Tata Engineerings Financial Restructuring.Tata Engg, BPCL tie up to market co-branded lubricants.Tata Steels investment in TataEngineering has been hiked to Rs 117.98 crore over the last year. Telco names Sedan as TataIndigo.Unveils EX series of medium and heavy commercial vehicles. Indica sales cross two-lakh mark .Collaborates with Nippon-Arcelor for technical knowhow on CR steel. ReceivesTeris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on developmentof strategies for sustainable development and environment-business council for sustainable
15. development) corporate social responsibility (CSR) awards for 01-02. Unleashes Safaris petrolversion; priced at Rs 9.35 lakh.The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a binding Memorandum ofUnderstanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for theacquisition of this company. It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle(LCV). The Company changed from TELCO to TATAMOTORS w.e.f December 24, 2003. Inthe same year Tata Safari ranks No 1 in MUV/SUV segment.2004:- The year of glory. Tata Motors launch an upgraded version Indica on January 15, 2004,in a bid to shore up sales of the small car.Auto Expo: Tata unveils new version of Indica. Tata Motors unveils Indica V2. Tata Motorslaunches new Indica V2 in Kerala. Tata Motors introduces new Indicab for tour operators. Themuch hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned. TataMotors enters agreement with Ukraine bus building firm. Tata Motors enters into agreement withEtalon. In a move to consolidate its presence in the light commercial vehicles segment, TataMotors has launched a new variant of its 407 series with increased pay load capacity called SFC407EX. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors unveils Tata SFC407 EX. Tata Motors inks agreement with Austrian, French companies. Acquires DaewooCommercial Vehicle Company Ltd (DWCV), Korea. Tata Motors launches most anticipated new6-tn truck in India.Tata Motors, the countrys largest commercial vehicles manufacturer unveiled the new LPT909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of passengercars, utility vehicles, pick-ups, trucks and buses for the South African market. Tata Motors haslaunched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motors rolls out TataSFC 407EX BS II turbo light commercial vehicle.Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. Tata Motorsrolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo with a pricetag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes in CVTech tomake parts for its small car. Tata Daewoo inks pact with Pakistan co.Tata Motors has been presented the Golden Peacock Global Award for Corporate SocialResponsibility (CSR) in the Large Business category by the Institute of Directors in 2007. TataMotors buys Nissan facility in S. Africa. Tata Motors has got a prestigious order from the DelhiTransport Corporation (DTC) for 500 non-AC, CNG-propelled buses. Tata Motors Ltd hasappointed Mr. P M Telang as Executive Director (Commercial Vehicles).
16. CURRENT SITUATIONThe Tata Motors group is a passenger and commercial vehicle manufacturer based in India. Themotor group was established in 1945 as part of the larger Tata Group. They have long beenknown for their commercial vehicles and in the past ten years entered into the passenger carmarket. Currently, Tata Motors has a line of five passenger vehicles and a large line ofcommercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both productlines of the Tata Motors group have seen success, but much of this has been built upon the moredeeply established commercial vehicle product line.Tata Motors commercial line has been established for several years in many market segmentssuch as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motorshas expanded their business and market share around the world through a series of acquisitions.In 2004, they acquired Daewoo commercial vehicle Company in South Korea which was SouthKorea’s second largest truck manufacturer. This acquisition gave Tata Motors a significantpresence in the Korean market. They have also entered into joint ventures with companies suchas Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucksin Thailand.Tata Motors have been making global headlines in the auto industry lately; the largest newsbeing their acquisition of Jaguar and Land Rover from Ford. “Tata paid 2.3 billion dollars toFord for the two brands that cost Ford 5.3 billion” (Carty, USA Today). This is a major step forthe company because it catapults them into the luxury car business which they are not known forat this time. Tata, like many new businesses it acquires, is allowing this new segment of thebusiness to be run by previous management since they have more experience in the luxuryautomotive business. “Tata will give us some space. They want us to run our business, be apremium British car company” (Mike O’Driscoll, managing director of Jaguar). This is yetanother large acquisition for the Tata Motors group and could create great success for thecompany in the near future.Porters five forces analysis is a framework for the industry analysis and businessstrategy .It uses concepts developed in Industrial Organization economics to derive five forces,which determine the competitive intensity and therefore attractiveness of a market.The Five Forces:1.The threat of substitute products-As we know the Indian customers choices range frommileage, pick-up, power steering to various other things so substitute is very important aspect inthis industry as other product available in the market may act as the substitute to the brands ownexisting product.2. The threat of the entry of new competitors-New completion from the new entrant or fromexisting company is also highly potent force which a company must have to take care of for itsmarket share and growth.
17. 3. The intensity of competitive rivalry-The very effective way of putting competitor out of trackis pitching new vibrant products in the market so a company must be aware of this tactics by itsrival company so that it can cater the effect.4. The bargaining power of customers-Another important aspect for a car or auto company wherethey have to manage the pricing control of their product to spurt the sales in the market.5. The bargaining power of suppliers- The distribution channel is very important in country likeIndia where the demand is highly different with all across its dimension so, supply is very muchrequired in the industry for a company.PRODUCTS OF TATA MOTOR 1. Passenger cars and utility vehicles: TATA SUMO GRANDE TATA SAFARI Indica Vista Tata Sierra Tata Estate Tata Sumo/ Spacio Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Nano Tata Xenon XT Tata Xover 2. Concept vehicles: 2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indiva 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima 3. Commercial vehicles: TATA 1616 STARBUS TATA MARCOPOLO BUSES Tata Ace Tata TL/ Telcoline /207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex
18. Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Globus (Low Floor Bus) Tata Marcopolo Bus (Low Floor Bus) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8X2) Tata 3516 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6X4) Tata Novus (Heavy truck designed by Tata Daewoo) 4. Military vehicles: Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top,4x4, and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E Tata SD 1015 TC (4x4) Tata LPTA 1615 TC (4x4) Tata LPTA 1621 TC (6x6) Tata LPTA 1615 T
19. SWOT ANALYSISSTRENGTH: • Strong Presence in the Marketplace:-Tata Motors is the only company in India with a broad based presence across the industry, in all segments of the commercial vehicles
20. market – heavy and medium commercial vehicles, light commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsize car and utility vehicle segments - of the passenger vehicles market.• Unique Understanding of Customer Need: - With 50 years’ presence in the automotive business, Tata Motors understands customer needs and develops products that meet their Needs. To consider a few examples, as early as 1980s, the company launched Light Commercial Vehicles, amidst Japanese competition, in which it today strongly leads. In the 1990s, Anticipating the need for an affordable family car, it launched the now famous Tata Indica, which occupies a leading position among compact cars.• Skill Base Developed over the Last 40 Years:-Tata Motors is also very well-placed on technology capability. The company had set up its Engineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-the-art development, testing and validation facilities, it is this technology capability which has, allowed Tata Motors, over the decades, to offer indigenously developed products. This strength has been accentuated, with the inclusion of TMETC, TDCV and Hispano Carrocera in the R&D network, besides several other specialist external agencies. The company no longer needs to develop every necessity itself. Today it just has to manage the process of product creation, drawing upon already available R&D and skills from different sources.• People Strength: - The Company’s key strength is its people. The over 22,000 employees comprise a very broad talent base, with the required skills in every aspect of the industry. With increasing international initiatives by the company, this talent base is now getting enriched with the necessary competencies to respond to meet world-class standards of quality and cost. The company will achieve this by developing and marketing relevant products, on its existing platforms and new ones, which delight consumers in every market they are introduced in.• Tata Motors’ linkages in Europe through Subsidiary Companies: - In October 2005, Tata Technologies Ltd, a 100 per cent subsidiary of Tata Motors, acquired a 94.3 per cent stake in INCAT International Limited. INCAT is a supplier of engineering & design, product lifecycle management and product-centric IT services to the automotive, aerospace and durable goods industries.• Tata Motors R&D in Europe: - Deepening its engagement with the European R&D space, in September 2005, Tata Motors set up the Tata Motors European Technical Centre, a 100 per cent subsidiary, in the UK. It is engaged in design engineering and development of products for the automotive industry. Working synergistically, TMETC provides the company with design engineering support and development services, complementing and strengthening the company’s skill sets and providing European standards of delivery to the company’s passenger vehicles.• The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after
21. the Daewoo acquisition the Indian company leaned work discipline and how to get the final product right first time.OPPURTUNITIES: • India’s huge geographic spread-This is one aspect where the company is looking for and its diversified range of cars suits very much this area of car or say auto industry in country. • Easier finance schemes- The current fiscal stimulus and easy loan will surely guide the company to post good sales as the current trend shows the cars sales has been boosted by easy loan norms in the country. • Replacement of aging four wheelers-One of very important reason where the car industry and commercial vehicle can take advantage in coming days. • Increasing Road Development, Golden Quadrilateral-as we all know the infrastructure will surely boost the auto industry as it is directly related to the this industry and the government policy in spending the money ion infrastructure will create good demand. • Increasing dispensable income of rural agri sector-Somehow this year the rural demand was very enthusiastic than the urban market which drive the auto industry so, the development of rural infrastructure and condition will create handsome demand from the rural area. • Higher GDP growth-With standing tall during the slowdown our economy has shown the industry that demands will gain momentum in near future very soon. • Increasing disposable income with the service sector-As the consumers have money in their hand definitely there will be demand from their side so, this is also very good opportunity for this sector. • Graduating from Two wheeler to four wheeler-The dream of “NANO” will boost demand for four wheeler in the auto industry.THREAT: • Indian is lacking in proper infrastructure this is slowing the pace of growth of auto industry
22. • Global crisis- this really hurts the Indian growing industry and not only the auto but tyre industry went for toss. • High competition from foreign players-As the giants like GM, Audi, MERC etc are trying to capture the high segment market it is one of the very effective threat to the company. • Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. • Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated. • Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others. • Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tatas products run on Diesel fuel which is becoming expensive globally and within its traditional home market.WEAKNESS:
23. • The current financial situation of its recently acquired firms like “Corus” and “Land Rover-Jaguar” is very big headache for the company and it should be back to the track in the near future.• The high ratio of debt equity ratio is also weakness of the company.• The small car segment is still not good for the company due to “maruti-suzuki” so, it need to tap this section also.• The CV segment is becoming highly competitive by new player like Volvo,and rival M &M are coming with new products to cater the TATA in the market as the rural area has given thumps up to M&M during this year.• The companys passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers.• Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?• One weakness which is often not recognized is that in English the word tat means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover.
24. MARKETING STRATEGIES 1. Launch of Tata Nano TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after tax) for the masses and they call it “The People’s Car”. It’s a sweet looking small car, just enough to take four people around the city. 1 Lakh rupees roughly translate to 2500 rupees monthly installment and because of this reason TATA is expect to sell record breaking numbers and leave Indian roads blocked. Following TATA Nano car specs in comparison with Maruti 800: Overall Length of Nano is 3100 MM which is 7% shorter than Maruti 800 Overall Breadth of Nano is 500 MM which is 4% wider than Maruti 800 Overall Height of Nano is 1600 MM which is 14% taller than Maruti 800 Overall inside Space of Nano is 21% bigger than Maruti 800 Engine Capacity 623 CC 2 Cylinder, Maruti 800`sgot 3Cylinders Power 33BHP, less than Maruti 800 Top Speed: 120 Kmph Top Speed lower than Maruti 800 Fuel efficient TATA Nano will hit the roads and as it is a definite threat to Maruti 800. TATA stated thatthe initial production of this car will be of 250,000 a year. After about four years of hard effortsTATA Nano (1 lakh rupee car) was on road now. The introduction of the Nano received media attention due to its targeted low price. The caris expected to boost the Indian economy, create entrepreneurial-opportunities across India, aswell as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairmanof the Tata Group and Tata Motors, who has described it as an eco-friendly "peoples car". Nanohas been greatly appreciated by many sources and the media for its low-cost and eco-friendlyinitiatives which include using compressed-air as fuel and an electric-version (E-Nano). TataGroup is expected to mass manufacture the Nano, particularly the electric-version, and, besidesselling them in India, to also export them worldwide.Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed inroad-accidents every year), and have also criticized the pollution that it would cause (includingcriticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promisedthat it would definitely release Nanos eco-friendly models alongside the gasoline model.The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, butincreasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors isreportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother planthas been proposed for Sanand Gujarat. The company will bank on existing dealer network for
25. Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000for Singur. Gujarat has also agreed to match all the incentives offered by West Bengalgovernment.The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarilyat the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highwayand around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on January10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23, 2009and a booking period from April 9 to April 25, generating more than 200,000 bookings for thecar. The sales of the car begin in July 2009, with a starting price of Rs 115,000 (rupees). This ischeaper than the Maruti 800, its main competitor and next cheapest Indian car priced at184,641Rupees.DESIGNRatan Tata, the Chairman of Tata Motors, began development of the worlds cheapest productioncar in 2003, inspired by the number of Indian families with two-wheeled rather than fourwheeled vehicles. The Nanos development has been tempered by the companys success inproducing the low cost 4 wheeled Ace truck in May 2005.Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times ofIndia reported the vehicle is "a properly designed and built car". The Chairman is reported tohave said, "It is not a car with plastic curtains or no roof — its a real car."To achieve its design goals, Tata refined the manufacturing process, emphasized innovation andsought new design approaches from suppliers. The car was designed at Italys Institute ofDevelopment in Automotive Engineering — with Ratan Tata requesting certain changes, such asthe elimination of one of two windscreen wipers. Some components of the Nano are made inGermany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and othertechnologies.The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in threeversions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have airconditioning, power windows, and central locking. Tata has set its initial production target at250,000 units per year.COST CUTTING FEATURES • The Nanos trunk does not open. Instead, the rear seats can be folded down to access the trunk space. • It has a single windscreen wiper instead of the usual pair. • It has no power steering. • Its door opening lever was simplified.
26. • It has three nuts on the wheels instead of the customary four. • It only has one side view mirror.PRICETata initially targeted the vehicle as "the least expensive production car in the world"— aimingfor a starting price of 100,000 rupees or approximately, despite rapidly rising material prices atthe time.As of August 2009, material costs had risen from 19% to 29% over the car’s development, andTata faced the choice of:· Introducing the car with an artificially low price through government subsidies and tax breaksforgoing profit on the car· Using vertical-integration to artificially boost profits on cars at the expense of their materialsindustries· Partially using inexpensive polymers or biodegradable plastics instead of a full metal bodyraising the price of the carNano is available in three trim levels: • The basic Tata Nano Std priced at 123,000 Rupees has no extras; • The deluxe Tata Nano CX at 151,000 Rupees has air conditioning; • The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central locking • The Nano Europa, European version of the Tata Nano has all of the above plus a larger body, bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards and emission norms.The base model will have fixed seats, except for the drivers, which will be adjustable, while thedeluxe and luxury models will get air conditioning and body coloured bumpers.Technical SpecificationsAccording to Tata Groups Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (21.97 km/L,51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways(25.974 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder non opposedpetrol engine will be used in a car with a single balance shaft. Tata Motors has reportedly filed34 patents related to the innovations in the design of Nano, with powertrain accounting for overhalf of them. The project head, Girish Wagh has been credited with being one of the brainsbehind Nanos design.
27. Much has been made of Tatas patents pending for the Nano. Yet during a news conference at theNew Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-shaking technology. He said most relate to rather mundane items such as the two-cylinderengine’s balance shaft, and how the gears were cut in the transmission.Though the car has been appreciated by many sources, including Reuters due to "the way it hastweaked existing technologies to target an as-yet untapped segment of the market", yet it hasbeen stated by the same sources that Nano is not quite "revolutionary in its technology", just lowin price. Moreover, technologies which are expected of the new and yet-to-be-released carinclude a revolutionary compressed-air fuel system and an eco-friendly electric-version,technologies on which Tata is reportedly already working, though no official incorporation-datefor these technologies in the new car has been released.According to Tata, the Nano complies with Bharat Stage-III and Euro-IV emission standards.Ratan Tata also said, The car has passed the full-frontal crash and the side impact crash. TataNano passed the required homologation’ tests with Pune-based Automotive ResearchAssociation of India (ARAI).This means that the car has met all the specified criteria forroadworthiness laid out by the government including emissions or noise & vibration and can nowply on Indian roads. Tata Nano managed to score around 24 km per litre during its‘homologation’ tests with ARAI. This makes Tata Nano the most fuel efficient car in India.Nano will be the first car in India to display the actual fuel mileage figures it recorded at ARAI’stests on its windshield. According to ARAI it conforms to Euro IV emission standards which willcome into effect in India in 2010.REAR MOUNTED ENGINEThe use of a rear mounted engine to help maximize interior space makes the Nano similar to theoriginal Fiat 500, another technically innovative "peoples car". A concept vehicle similar instyling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the1990s to succeed the original Mini but was not put into production. The eventual new Mini wasmuch larger and technically conservative. The independent, and now-defunct, MG Rover Grouplater based their Rover CityRover on the Tata Indica.Tata is also reported to be contemplating offering a compressed air engine as an option.
28. 2. MODIFICATION IN TATA SUMOThe Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis tolaunch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series ofchanges in terms of refinement in this decade. It has been the favorite choice for cab owners, as itis rugged and affordable.The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiffcompetition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is acarryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa variants:CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 10/7Str, GX 7Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a2- litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged dieselengine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine.Refinement, both internal and external, is evident across the variants. Tatas latest three variantsunder the Sumo Grande category are LX, EX and GX available in 2-seater, 7- seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L Direct Injection Common Rail(DICOR) engineSUMO SPACIOA no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc DIdiesel engine sourced from the popular LCV Tata 407. The prominent visual difference was thepresence of round headlamps instead of the rectangular lamps. A soft top version of the Spaciocalled the Spacio ST was also introduced for the rural markets. After the facelift, the Spacioinherited the styling elements of the older Tata Sumo. In 2007, the Victa became available withthe Spacios 3000 cc engine. And in terms of styling, the positioning of the spare wheel waschanged from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10seater variants and is very much popular with private transporters & contract taxi vendorsbecause of its lower cost.SUMO VICTAThe new Sumo Victa released in 2004 featured power windows, power steering, dual AC, centrallocking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti-glare ORVMSwith electronic control, remote keyless entry, tachometers, LCD monitors, voice warnings,multiple trip odometers are all either standard or available options.New TATA Sumo (SUMO GRANDE)Tata launched the Sumo Grande on January 10, 2008 powered with a new generation 2200 cc120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most upmarket version of the Sumo available and features completely different body work. It lies belowthe Tata Safari in Tatas product portfolio.
29. 3. NEW VERSIONS OF INDIGO, INDIGO DICORDicor VariantsThe DICOR (common rail diesel) version of Tata Indigo is available in two variants which hasalready hit the bulls eyes. The beefy & bony structured sedan has the capacity to delivermaximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has beenmade apt for Indian roads especially with its driver & co passengers oriented positive attributessuch as: • Anti-submarine front seats • New electronic instrument cluster with engine RPM meter • Rear Seat with double folding backrest • Video player with MP3: with headrest mounted LCD screens • 1.4-litre as rail diesel engineIndigo LX DicorTata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rearview window, black dials with chrome rings & star check as the new pattern for its console &AC fascia.Indigo LS DicorTata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benzsilver as the new pattern for console & AC fascia. It has no mounted LCD screens. 4. TAPPING OF RURAL MARKETAccording to the National Council for Applied Economic Research, or NCAER, rural Indiaaccounts for 70% of India’s population, 56% of the national income, 64% of the totalexpenditure and one-third of the total savings. So, the difficulties faced in cracking these marketspale before the huge potential they offer a company. Of the total sales (of consumer goods),around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAERdata suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income willbe about two-thirds of the rural economy by 2012-13.Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of whichruns on cash. Tata motors ltd. is working on strategies to make inroads into these markets.
30. REVIEW OF LITERATURE Released on: 3rd August, 2009 Tata Motors July sales at 48,054 nos., growth of 18% M&HCV sales record year-on-year growth after almost a year - Ashish GargTata Motors total sales (including exports) of Tata commercial and passenger vehicles in July2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. Thecompany’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599nos., a 23% growth over 37,033 nos. sold in July last year.Cumulative sales (including exports) for the company for the fiscal at 171,168 nos., was lowerby 1%, compared to 172,462 nos. sold last year.Commercial Vehicles: The Company’s sales of commercial vehicles in July 2009 in thedomestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in Julylast year.LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658nos. turning positive after almost a year with a growth of 6% over July last year and the highestsince September 2008.Cumulative sales of commercial vehicles in the domestic market for the fiscal were 100,464 nos.,a growth of 7% over last year. Cumulative LCV sales were 63,180 nos., agrowth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% overlast year.Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19,881nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July lastyear. TheIndigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV rangeof Sumo/Safari accounted for sales of 2,638 nos., flat compared to July last year.The company began the sale and deliveries of the Jaguar and Land Rover range through thebrands’ flagship store in Mumbai. The response has been quite encouraging in the first monthwith the initial India stock and pipeline imports booked to a large extent.
31. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for thefiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica rangeat 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%.ExportsThe Company’s sales from exports at 2,455 vehicles in July 2009 were lower by 34% comparedto 3,696 vehicles in July last year. The cumulative sales from exports for the fiscal at 7,676 nos.were lower by 40% over 12,855 nos. in the same period last year. Released on: 27th July, 2009 Tata Motors First Quarter Stand-alone net revenue Rs.6405 Crores, PAT grows 58% to Rs.514 crores- R. S. SardhaTata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a standalone basisfor the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% comparedto Rs.6928.44 crores in the corresponding quarter previousyear.The company’s continued focus on cost efficiencies, coupled with reduction of raw materialprices, inventory reduction and improvement in sales realisation, yielded considerable benefitsresulting in the operating margin to 11.4% (from 7.1% in the previous year), with operatingprofits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of theprevious year.Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due toincreased debt taken by the company during the previous year to support its productprogrammes, investments and working capital requirements and depreciation at Rs.229.12crores was higher by 26.7% reflecting the increased investments in new products and supportingcapabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreignexchange valuation loss of Rs.5.54 crores (previous year loss of Rs.161.59 crores).Improvement in liquidity, increased reach across the country and introduction of new productsand variants improved the company’s sales, except in the case of the heavy truck segment. Theheavy truck segment is recovering, albeit slowly, in response to infrastructure development,Government stimulus packages for the automobile industry and Jawaharlal Nehru NationalUrban Renewal Mission (JNNURM) initiatives.The company’s domestic sales volume at 122,120 vehicles recorded a marginal decrease of 1.4%over the corresponding quarter of the previous year, whilst the exports at 5220 vehiclescontinued to be severely impacted (negative 43%) in the wake of continuing tumultuous global
32. environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as comparedto the corresponding quarter of the previous year. The company gained market share incommercial vehicles to 67.4% during the quarter compared with 61% in the correspondingquarter of previous year on the back of a marginal 1.1% growth in domestic sales to 72,216 units.Tata passenger vehicles declined by 10% in the domestic market to 45,846 units but have beengrowing sequentially every month of the quarter breaking into positive growth in June. Themarket share for Tata passenger vehicles has sequentially improved from April to June 2009 withthe June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, thecompany has a joint market share of 12.3% in the industry.The company continues to upgrade its resources to leverage emerging opportunities. Incommercial vehicles, the company unveiled its new range of world standard trucks in May 2009,comprising multi-axle trucks, tractor-trailers, tippers, mixers and special purpose vehicles whichare being gradually launched in India and also in select international markets over a period oftime. An all-new Starbus range of buses has also been introduced. A new mileage enhancingautomatic stop-start technology, developed in-house, has been introduced in the Ace mini truck.Tata Motors has received a majority of the orders for buses released by different StateGovernments under the JNNURM.In passenger vehicles, the company has completed the process of allotment of Tata Nanos,following the car’s launch in March 2009. Deliveries to the allottees have since begun. Thecompany also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with theFiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the FiatGrande Punto in June 2009.The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. Theconsolidated financial results for the 1st quarter of Financial Year wouldbe voluntarily disclosed separately in due course. Released on: 17th July, 2009 TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI- Rojar R. KarmTata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has becomethe first customer in India of the Tata Nano. Mr. Vichare received his choice, the Tata Nano LX(Lunar Silver), at the hands of the Chairman of Tata Sons and Tata Motors, Mr. Ratan N. Tata, atthe company’s dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, “Ihope the Tata Nano will bring motoring pleasure to those who will be buying their first car asalso those who currently own cars but want a modern, contemporary, emission-friendly city car.”Along with Mr. Vichare, two other customers, Mr. Ashish Balakrishnan (Tata Nano LX –Sunshine Yellow) and Kores India Limited (Tata Nano LX – Lunar Silver), also received theircars today.
33. As planned, Tata Motors has commenced deliveries of the Tata Nano this month to differenttowns and cities of the country. Dispatches to dealerships have begun from the Pantnagar plant,where the car is being produced, in accordance with schedules informed to customers. Released on: 1st July, 2009 TATA Motors’s June 2009 DOMESTIC SALES at 43,244 nos.- G. Lata SureTata Motors’ total sales (including exports) of Tata commercial and passenger vehicles were45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company’sdomestic sales of Tata commercial and passenger vehicles for the month of June 2009 were43,244 nos., a 1% decline over 43,814 nos. sold in June last year.Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declinedby 7%, compared to 131,733 nos. sold last year.Commercial VehiclesThe Company’s sales of commercial vehicles in June 2009 in the domestic market were 26,205nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of23% over June 2008 but an increase of 15% over May 2009.Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscalwere 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growthof 27% over last year.Passenger VehiclesThe passenger vehicle business reported a total sale and distribution offtake of 19,513 nos.(17,039 Tata + 2,474 Fiat) in the domestic market in June 2009, an 11% increase compared to17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos.(15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive monthat sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009.The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June2008, but a growth of 29.7% over 2,550 nos. of May 2009.The company launched the Jaguar and Land Rover range in the last week of June in Mumbai.Cumulative sales and distribution offtake of passenger vehicles in the domestic market for thequarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported agrowth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over thesame period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of35%.
34. ExportsThe Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to3,431 vehicles in June 2008. The cumulative sales from exports for the fiscal at 5,220 nos.declined by 43% over 9,159 nos. in the same period last year. Released on: 28th June, 2009 FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIAJaguar Land Rovers official entry to the fast-growing Indian car market was marked today bythe opening of a flagship showroom facility at Ceejay House in Mumbai by Mr. Ratan N. Tata,Chairman of Tata Sons and Tata Motors.Jaguar and Land Rovers award-winning vehicles are well known around the world. Jaguar hasbecome one of the worlds leading producers of beautiful fast cars. Land Rover produces theworld’s most versatile all-terrain vehicles, combining refined luxury with a true breadth ofcapability.The exciting new range of premium luxury vehicles available for the Indian market will includethe Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and RangeRover. Further details, including specifications, are available on the new Jaguar India website(www.jaguar.in) and Land Rover India website (www.landrover.in).Jaguar Land Rover has confirmed Tata Motors as its exclusive importer and the world-classCeejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rovervehicles, with a dedicated showroom section for each brand. It aims to establish a benchmarkexperience in luxury car sales in India, with plans to develop the dealer network throughout 2009and 2010.Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleasedand proud to introduce the Jaguar Land Rover brands in the Indian market and give thediscerning Indian customer direct access to these prestigious brands, accompanied by a parts andservice network. We hope that they will delight customers in India just as they have done inmarkets the world over."Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to haveofficially opened our first showroom in India. It is an exciting time to be entering the Indianmarket, a country with increasing affluence and an economy which is still growing. We believe100 that the Indian market holds significant growth potential in the long term, and we hope to tapthe demand for premium vehicles from discerning customers."
35. Released on: July 7, 2009 TATA MOTORS TO INTRODUCE AIR CAR– Ben MaGreowTata Motors is taking giant strides and making history for itself. First the Landrover-Jaguardeal, then the worlds cheapest car and now it is also set to introduce the car that runs on air,compressed air to be specific.With fuel prices touching nearly $150 per barrel, it is about time we heard some breakthrough!Indias largest automaker Tata Motors is set to start producing the worlds first commercial air-powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre forLuxembourg-based MDI, uses compressed air, as opposed to the gasand- oxygen explosions ofinternalcombustion models, to push its engines pistons. Some 6000 zero-emissions Air Cars arescheduled to hit Indian streets by August of 2009.The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and wouldhave a range of around 300 km between refuels.The cost of a refill would be about Rs. 85 ($ 2). Tata motors also plans to launch the worldscheapest car, Tata Nano priced famously at One lakh rupees(£1200) by October.The MiniCAT which is a simple, light urban car, with a tubular chassis that is glued not weldedand a body of fiberglass powered by compressed air. Microcontrollers are used in every device inthe car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are nokeys - just an access card which can be read by the car from your pocket.According to the designers, it costs less than 50 rupees per 100Km (about a tenth that of a petrolcar). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10hours of driving), a factor which makes a perfect choice in cities where the 80% of motoristsdrive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once themarket develops, take place at adapted petrol stations to administer compressed air. In two orthree minutes, and at a cost of approximately 100 rupees, the car will be ready to go another200-300 kilometers.As a viable alternative, the car carries a small compressor which can be connected to the mains(220V or 380V) and refill the tank in 3-4 hours. Due to the absence of combustion and,consequently, of residues, changing the oil (1 litre of vegetable oil) is necessary only every50,000Km.] The temperature of the clean air expelled by the exhaust pipe is between 0-15degrees below zero, which makes it suitable for use by the internal air conditioning system withno need for gases or loss of power.
36. Released on: 26th June, 2009 Consolidated Revenue in 2008-09 Rs. 70938.85 crores, Loss after Tax Rs. 2505.25 croresTata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. Theconsolidated financial performance of the company is not comparable to 2007-08 on account ofthe acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenuewas Rs.40340.79 crores.The consolidated revenues (net of excise) in 2008-09 amounted to Rs.70938.85 Crores (2007-08:Rs. 35660.07 crores). On a consolidated basis, the company reported a Loss after Tax in 2008-09of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70crores.Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (2007- 08: Profitof Rs. 56.24) for its consolidated operations.Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net ofexcise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year wasRs.1001.26 crores.Business Highlights:Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in thefirst half of 2008. However, the global meltdown, especially after July 2008 with vehiclefinancing and demands drying up, impacted the auto industry worldwide, including Jaguar LandRover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able tomaintain the sales level primarily on the back of a very strong consumer response to the newlylaunched XF sedan.The company has actively responded to this changed situation by taking a number of urgent andlong term measures. These include cutting costs drastically and working on a plan of substantialcost reduction, aligning production with demand and tight control over cash flows. In addition,Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and LandRover brands, and is to unveil the all new XJ sedan shortly.TDCV:While market illiquidity and high interest rates in South Korea impacted the company’s domesticperformance, it strongly grew exports. The company is focusing on aggressive growth in bothhome and international markets harnessing stimulus packages announced by differentgovernments, as also product development initiatives.Telcon:
37. The company has launched several new products, but was impacted by the credit squeeze in thethird quarter of the year. It expects demand revival supported by infrastructure spend in thecountry.HVAL & HVTL:Though impacted by lower volumes on the back of decline in medium and heavy trucks,the two companies significantly reduced variable costs to counter the slowdown. Their plansinclude strengthening in-house design and validation capabilities and expanding customer basein India and broad.TMFL:In line with Tata Motors’ sales in 2008-09, there was a decline in disbursals. It is focused onincremental captive vehicle financing of Tata Motors through increased securitisation andborrowings on its own books with higher ability to leverage.Tata Technologies:The company has consolidated position among the top three solutions and software provider ofleading Engineering and PLM products in all major geographies winning several projects, andhas expanded presence in aerospace design and aero structures. While the year ahead ischallenging, it has developed appropriate business structures and processes to strengthenrelationship with strategic clients. Released on: 29th May, 2009Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores,and Net Profit lower at Rs.1001.26 crores, due to market upheavalTata Motors today reported gross revenue (stand-alone) of Rs.28599.27 crores (2007- 08:Rs.33093.93 crores) in 2008-09, a year marked by severe demand contraction in the automobileindustry.Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 croresin 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared toRs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year wasRs.1001.26 crores compared to Rs.2028.92 crores, a decline of 50.7%.The demand contraction was triggered by high interest rates and unavailability of financethroughout the year; particularly in the October-December quarter post the global financialmarket upheavals. The impact on heavy commercial vehicles was more severe, abetted byreduction in freight movement in different segments and customer concerns on economicconditions. Small commercial vehicles, like the Tata Ace and the Tata Magic, have continued toimprove penetration.Stimulus packages from the Government in the last quarter of the year have to an extent helpedregenerate overall sales, as in the automobile industry, but growth is yet to revive to earlierlevels.
38. The fall in volumes combined with peak input prices and high interest rates brought marginsunder pressure. The company accelerated cost reduction measures and proactively managedworking capital to contain the impact as best as it could. The total 2008-09 sales volume(including exports) is 506,421 units, compared to 585,649 units in the previous year. Thecompany retained its domestic leadership position in commercial vehicles, and continued to beamongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to265,373 units (2007-08: 312,935 units). The company increased market share in commercialvehicles to 63.8% (2007-08: 62.2%), aided by its wide product offering. Domestic passengervehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the secondgeneration Tata Indica Vista and the continuing good run of the Tata Indigo CS has helpedrecover market share in passenger vehicles in the second half which stands at 13.1% for the year(2007-08: 14%) and a March exit share of 14.5%. Tata Motors’ exports were 33,536 numbers(2007-08: 54,659 numbers), impacted by the worldwide downturn in the industry.The launch of the Tata Indica Vista was augmented by the distribution of the Fiat 500 and Linea,both of which have been received well. In commercial vehicles too, new products, introducedduring the year or the previous year, offering benefits like higher fuel efficiency, grew at a fasterrate and helped enhance market share.The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, andthe launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings werereceived for the Tata Nano, the deliveries of which will begin from July 2009. The Pantnagarplant began producing the Tata Nano during the year, while the Sanand plant is rapidlyprogressing towards completion.DIVIDENDThe Board of Directors has recommended a dividend of Rs.6/- per Ordinary share and Rs.6.50per ‘A’ Ordinary share of Rs.10/- each for the financial year 2008-09 (2007- 08: Rs.15/- forOrdinary share). The dividend is subject to approval of shareholders; tax on the dividend will beborne by the Company.The Audited Financial Results for the financial year ended March 31, 2009, are enclosed.
39. RESEARCH METHODOLOGYThe purpose of methodology is to describe the process involved in research work. This includesthe overall research design, data collection method, the field survey and the analysis of data.SOURCE OF DATA COLLECTION:PRIMARY:For my survey primary data have been used as a questionnaire to collect the data.SECONDARY:The secondary data has been collected from the following modes: • Magazines • Books • Newspaper • Data through internet sourcesRESEARCH DESIGN:Research Design is the arrangement for conditioned for data collection & analysis of data in amanner that aims to combined relevance to research purpose with economy in procedure.A research design is a master plan or model for the conduct of formal investigation. It is blueprint that is followed in completing study.The research conducted by me is a descriptive research. This is descriptive in nature becausestudy is focused on fact investigation in a well-structured from and is based on primary data.RESEARCH PLAN • Type of study: For completing my study I have gone for sample study because looking at the size of population & the time limitation it was not convenient for me to cover entire population. Hence, I have gone for sample study rather than census study.SAMPLING PLAN:A sample design is a definite plan for obtaining a sample from a given population. It refers to thetechnique or the procedure that researcher would adopt in selecting items to be inched in thesample i.e. the size of sample. Sampling plan is determined before data are collected.
40. STEPS IN SAMPLING PLAN:SAMPLING FRAME:The list of sampling units from which sample is taken is called sampling frame. Rourkela Citymap was studied thoroughly and samples were selected from the place in a scattered manner toget effective result.SAMPLING SIZE:Total sample size is 50. The following sample size according to area wise is as follows: • 10 CIVIL TOWNSHIP • 10 CHHEND • 10 BASANTY COLONY • 10 KOELNAGAR • 10 SECTORSAMPLING PROCEDURE:The selection of respondents were accordingly to be in a right place at a right time and so thesampling were quite easy to measure, evaluate and co-operative. It was a randomly areasampling method that attempts to obtain the sample of convenient.ANALYSIS:The important factors and data’s collected were sequentially analyzed and graphed.FIELD WORK:I have collected the data through medium called questionnaire collecting the responses from 50people in all. I had done my field work in the following area.CIVIL TOWNSHIP, CHHEND, BASANTY COLONY, KOELNAGAR, SECTORI started my project very first educating the respondents about my entire project, and ask them toco–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’tface any type of difficulty during my project in the process of explaining and taking theirresponses on the questionnaire.
41. RESULTS AND ANALYSISTata Motor`s exclusive showroomsThe respondents were asked to rate Tata Motor`s exclusive showrooms on 5 point rating scale –Poor, Average, Above Average, Good and Excellent. The factors related to showrooms that wereprovided to the respondents for rating are – store ambience, sales personnel, after sales serviceand display of watches. Consumer perception of store ambience36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “AboveAverage” and “Excellent”. This proves that store ambience plays an important role in consumerperception of service quality. Consumer perception of sales personnel
42. With respect to sales personnel, 35 respondents rated them as “Good”, while 4 each rated as“Poor” and “Average”, 7 respondents gave rating of “Above Average”. Consumer Perception about after sales serviceIn the survey, 31 out of 50 respondents rated after sales service as” Good”, 4 each as “Average”,“Above Average”, “Excellent” while 7 respondents rated as “Poor”. Consumer perception of Display of cars
43. Most of the respondents have given high ratings to the display of watches in Tata`s showroom.22 respondents rated it as “Excellent”, 24 respondents as “Good” and only 4 respondents gaverating of “Average”. Overall perception about Tata showroomsThe respondents were also asked to give overall rating to Tata`s exclusive showrooms. It wasfound that out of total 50 respondents, 30 rated as “good” while the remaining considered theshowrooms to be “excellent”.Around 50% of the respondents rated all the variables related to Tata`s exclusive showrooms as“good”. This shows that the store ambience, sales personnel, after sales service and display ofcars in the showrooms play a major role in determining the customer perception about brand. Car customers
44. No. of people First time user 23 More than once 27 27 26 25 First time user 24 More than once 23 22 2123% were first time users and 27% reported that they have used car more than once. Customer satisfaction from Tata cars Customer satisfaction No. of people Satisfied 21 Not satisfied 29 30 25 20 Satisfied 15 Not satisfied 10 5 021% of people were satisfied but 29% were not satisfied. Tele media creates a brand appeal T.V.ads appeal No. of people Yes 17 No 33
45. 35 30 25 20 Yes 15 No 10 5 017% people agreed that T.V. ads do create brand appeal whereas 33% were against it. Tata Passenger Cars, Creating brand value Brand value No. of people Yes 15 No 5 15 10 Yes No 5 015% people were favorable towards Tata passenger cars creating brand value whereas 5% wereagainst it. Factors affecting buying of customers Features No. of people Power steering 10 Mileage 12 Price 20 Others 8 20 15 Power steering Mileage 10 Price 5 Others 0
46. 10% replied power steering while 12% mileage, 20% price and 8% other factors. Associated with Tata Motors No. of people 1 year 0 1-3 years 0 3-5 years 0 5-10 years 30 Above 10 years 20 30 25 1 year 20 1-3 years 15 3-5 years 10 5-10 years 5 Above 10 years 030% people replied that they were associated with Tata motors for more than 5 years whereas20% replied that they own Tata car for more than 10 years. Knowledgeable salesperson No. of people Strongly Disagree 0 Disagree 0 Neither disagree nor 0 agree Agree 36 Strongly agree 14 Strongly 40 Disagree 35 Disagree 30 25 Neither disagree 20 nor agree 15 Agree 10 5 Strongly agree 036% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that thesales persons are knowledgeable. Employee spent enough time with you before sales No. of people Strongly Disagree 0
47. Disagree 0 Neither disagree nor 0 agree Agree 34 Strongly agree 16 Strongly 35 Disagree 30 Disagree 25 20 Neither disagree 15 nor agree 10 Agree 5 Strongly agree 034% people agreed that the sales persons spent enough time with them before the sales and 16%strongly agreed with this. Employee spent enough time with you during sales No. of people Strongly Disagree 0 Disagree 4 Neither disagree nor 0 agree Agree 32 Strongly agree 14 Strongly 35 Disagree 30 Disagree 25 20 Neither disagree 15 nor agree 10 Agree 5 Strongly agree 062% agreed that sales persons spent enough time with them during the sales, while 34% stronglyagreed that the sales persons spent enough time with them during sales and only 4% disagreedwith this. Availability of the product No. of people Strongly Disagree 0
48. Disagree 4 Neither disagree nor 0 agree Agree 31 Strongly agree 5 Strongly 35 Disagree 30 Disagree 25 20 Neither disagree 15 nor agree 10 Agree 5 Strongly agree 031% agreed that the availability of the product was there, 5% strongly agreed that the availabilitywas there while only 4% said they disagreed with this. Prices are affordable No. of people Strongly Disagree 0 Disagree 2 Neither disagree nor 5 agree Agree 21 Strongly agree 22 Strongly 25 Disagree 20 Disagree 15 Neither disagree nor agree 10 Agree 5 Strongly agree 022% strongly agreed that the prices are affordable, 21% agreed that the prices are affordablewhereas only 5% said that they neither disagreed nor agreed with this. Attractive discounts offered No. of people Strongly Disagree 0 Disagree 6 Neither disagree nor 0
49. agree Agree 27 Strongly agree 17 Strongly 30 Disagree 25 Disagree 20 Neither disagree 15 nor agree 10 Agree 5 Strongly agree 027% agreed that the discounts offered are attractive, 17% strongly agreed with this while 6%disagreed and said that the discounts offered were not attractive. Offered test drive No. of people Strongly Disagree 0 Disagree 20 Neither disagree nor 0 agree Agree 24 Strongly agree 6 Strongly 25 Disagree 20 Disagree 15 Neither disagree nor agree 10 Agree 5 Strongly agree 024%agreed that the test drive was offered to them, 6% strongly agreed that the test drive wasoffered while 20% disagreed with this. Responds to complain quickly No. of people Strongly Disagree 0 Disagree 9 Neither disagree nor 11 agree
50. Agree 20 Strongly agree 10 Strongly 20 Disagree Disagree 15 Neither disagree 10 nor agree Agree 5 Strongly agree 020% agreed that the response to complaints is quick, 10% strongly agreed, 11% neither agreednor disagreed and 9% disagreed with this. Careful with personal information No. of people Strongly Disagree 0 Disagree 0 Neither disagree nor 8 agree Agree 35 Strongly agree 7 Strongly 35 Disagree 30 Disagree 25 20 Neither disagree 15 nor agree 10 Agree 5 Strongly agree 035% agreed that yes they were careful with personal information, 7% strongly agreed with thisand 8% neither agreed nor disagreed. Commitments are fulfilled No. of people Strongly Disagree 0 Disagree 7 Neither disagree nor 0 agree Agree 6
51. Strongly agree 37 Strongly 40 Disagree 35 Disagree 30 25 Neither disagree 20 nor agree 15 Agree 10 5 Strongly agree 037% strongly agreed that all the commitments were fulfilled and 6% agreed with this Brand recall No. of people Indica 13 Indigo 0 Safari 10 Sumo 11 Xenon 0 Nano 36 40 35 Indica 30 Indigo 25 Safari 20 Sumo 15 Xenon 10 5 Nano 013% recalled indica model while 10% safari, 11% sumo, and 36% nano. Reasons for brand preference No. of people Design 39 Price 7 Brand image 22 Good quality 25
52. 40 35 30 Design 25 Price 20 Brand image 15 10 Good quality 5 039% replied they prefer brand due to design while 7% price, 22% brand image and 25% quality. Major advertisement media No. of people TV 46 Magazines 25 Newspapers 36 Radio 4 50 40 TV 30 Magazines 20 Newspapers Radio 10 046% responded TV while 25% magazines, 36%newspapers and 4% radio. Awareness of brand ambassador No. of people Yes 6 No 44
53. 50 40 30 Yes No 20 10 06% people are aware of tata`s brand ambassador while 44% are not aware of this. Overall opinion about TATA No. of people Very bad 0 Bad 0 Neither bad nor good 0 Good 4 Very good 96 Very bad 100 80 Bad 60 Neither bad nor 40 good Good 20 0 Very good96% said that there overall opinion about TATA was that it is very good while 4% said that it isgood. Overall opinion about TATA No. of people Very unlikely 0 Unlikely 0 Neither unlikely nor likely 0 Likely 10 Very likely 90
54. Very unlikely 100 80 Unlikely 60 Neither unlikely 40 nor likely Likely 20 0 Very likely90% people said they would very likely recommend TATA to other people and 10% said theywould likely recommend TATA to others.
55. FINDINGS• Tata Motors is number three in passenger car market after maruti-suzuki & hyundai.• Majority of the customers see TATA MOTORS with savings.• Most of the customers spend large sum of money.• Out of the samples, people are highly convinced that TATA MOTORS will yield them better results• As the sales of Maruti grows as well as Hundai’s santro is still doing well in mid-size and small size segment so Tata Motors has to sustaining sales in long run as well as in the current situations.• Product will have a gradual progress. Because most industries would wait for the response about the product from other Company.• Customers were educated by me, about fuel efficient cars by Tata Motors.• Improving the marketing Strategies.• Analysis the business strategies of competitors.• Making the decision to capture the rural market.• More test drives should be offered.• Should be more particular about Post Sales Follow Up as it shows the concern of the company with the customer.• Advertisement in mass media such as television, newspapers, and magazines are best means to spread awareness about brand repositoning.
56. CONCLUSIONThe study was conducted to measure,” Repositioning Strategy of Tata Motors and itsacceptance level in customer - A study in Rourkela Market “. The study was conducted on 50Customers. A questionnaire was designed to understand the Repositioning Strategy of TataMotors and its acceptance level in customer in Rourkela market. Based on the questionnaire, datawas collected and analyzed and it was found that the customers are willing to buy the Cars.However they are also skeptic about it. Findings are provided based on customer and marketsituation. An earnest attempt has been made to make the study realistic and suggestive, but it isnot claimed that the findings and suggestions in the report are perfect.The suggestions to improve consumer awareness about brand repositioning strategy of TataMotors are as follows: • To increase its visibility so that different segments of the customer will notice the products of Tata motors in varied ways. • Invest more in R&D as customer expectations are changing rapidly. • Make use of internet to spread awareness among consumers about the brand. • Brand Appeal and Endorsement • Performance Characteristics • QualityThe two ways firms compete are by either a differentiation strategy or a low cost strategy.However, as weve seen the route TML has taken involves competing on both strategies. Whilethe Nano targets the price conscious common man, the Jaguar Land Rover deal shows us thatTML is now targeting brand conscious, high-end consumers. TML needs to have a similardifferentiated strategies focusing separately on these brands.TML’s vision is to be “best in the manner in which we operate best in the products we deliverand best in our value systems and ethics”. TML has come to be known as an innovator in thepassenger car segment not just in manufacturing but along multiple areas along the value chain.The Tata Indica and Tata Nano are prime examples of the company’s innovation capabilities andbear testimony to the strength of the company’s R&D efforts. This innovation fuelled growthcoupled with strategic acquisitions is expected to catapult the company to a preeminent positioninternationally.
57. APPENDICESQUESTIONNAIRE1) How do you rate Tata`s showrooms with respect to the following?(1–Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent)a) Ambience -b) Sales personnel -c) After sales service -d) Display of watches -e) Overall showroom –2) Which vehicle do you own?3) Did you ride some other vehicle before this? o Yes e No4) What is your experience from the previous vehicle? Satisfied e Not satisfied5) Which is the most essential thing you prefer while buying vehicle? h Price Mileage e Power steering p Others6) Does TV ad appeal you? Yes No7) Do you like TV programs on car? o Yes e No8) Does brand value affect your decision on buying vehicle? Yes No9) How long have you been associated with Tata Motors?10) How would you rate TATA Motors on the following parameter? Strongly Disagree Neither Agree Strongly disagree agree nor agree disagreea) Knowledgeable salespersonb) Employees
58. spent enough time with you: before sales During sales After salesc) Availability of the productd) Prices are affordablee) Attractive discounts offeredf) Offered a test driveg) Responds to complaints quicklyh) Careful with personal informationi) All the commitments are fulfilled11) What is your overall opinion about Tata Motors? Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 512) How likely would you recommend Tata Motors? Very Unlikely Very Likely 1 2 3 4 5