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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
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)
DECLARATION
CERTIFICATE
This is to certify that the Management Thesis titled “Repositioning Strategy of Tata Motors and
its 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 Student
Name (in Capitals) : PRANAB MISHRA
Enroll Number : 8NBRU032
Campus : INC ROURKELA
Signature of the Faculty Supervisor
Name (in Capitals) : MRS. ASMITA JHA
Designation : HR FACULTY
Campus : INC ROURKELA
TABLE OF CONTENTS
1. Acknowledgements.
2. Introduction
3. Objectives.
4. Limitations.
5. Research Methodology.
6. Results and analysis
7. Findings.
8. Conclusions.
9. Appendices.
10. References.
ACKNOWLEDGEMENTS
Any accomplishment requires the effort of many people and this work is not different. I am
thankful to my faculty supervisor Mrs. Asmita Jha for supporting me and guiding me
throughout the project. This report would not have been possible without her help. I would also
like to express my gratitude towards Mr. Bishan Singh, INDERA MOTORS, Rourkela for his
cooperation 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 and
inspiring me to do my project with full dedication.
PRANAB MISHRA
INTRODUCTION
The rapid pace of change and intense competitive pressure in today's marketplace demand that
brands continuously innovate and reinvent themselves to maintain their relevance and market
position. In this context, brand repositioning and other revitalization strategies have become a
business imperative for battling brand erosion. The appeal of brand repositioning is further
heightened 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 been
treated 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 repositioning
strategies relates to the management of consumers' perceptions. However, positioning focuses on
the creation of brand associations - consumers' perceptions of the attributes that differentiate the
brand from competitive offers – while repositioning also implies managing existing brand
associations. The unique challenge of a repositioning strategy, thus, lies in rejuvenating the brand
image 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. Through
repositioning the company can reach customers they not intended to reach in the first place. If a
brand has been established at the market for some time and wish to change their image they can
consider repositioning, although one of the hardest actions in marketing is to reposition a
familiar brand.
According to Solomon, position strategy is an essential part in the marketing efforts because
companies have to use the elements in the marketing mix to influence the customers
understanding of the position. During the movement from something less attractive and relevant
towards a more attractive and relevant position several of strategic choices has to be made. The
ones responsible for the repositioning have to evaluate why a reposition is necessary, and if the
offer is the one who will change or just the brand name. There are several risk factors that have
to 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 a
thorough strategy is therefore necessary to avoid this occurrence. Some analyst argue that to
successfully reposition a establish brand name is almost impossible because repositioning of a
brand can make the most loyal customer to switch brand. But, in some circumstances a
repositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition is in
question it has to be of relevance from a customer perspective, is this achievable? Some brands
will on no account be thought on as a luxury brand and therefore an attempt to reposition will
only damage the brand image or the actual company.
Numerous failed attempts at brand repositioning testify to the difficulty of developing and
implementing such a tactic. For example, while the soft drink brand, Mountain Dew has
remained relevant to the youth market through continuous repositioning in its thirty years of
existence, Levis' Jeans has been losing market share to newcomers such as The Gap, despite
numerous campaigns designed to reposition the brand as trendy.
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 a
better understanding of the dynamics of brand repositioning. Specifically, questions of whether,
when and how brands should be repositioned need to be addressed. Research into brand
repositioning is relevant not only to the development of brand management theory, but also
extends to corporate strategy through an examination of corporate brands.
Indian Automobile Industry
The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent
over 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 backward
linkages 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 percent
growth 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 Maruti
800 to latest M&M Xylo. The industry is highly competitive with a number of global and Indian
companies present today. It is projected to be the third largest auto industry by 2030 and just
behind to US & China, according to a report. The industry is estimated to be a US$ 34 billion
industry.
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 as
foreign 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. And
India is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market is
catered 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 got
into the merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero with
Honda, 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 lakh
units 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
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.
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.
COMPANY PROFILE
TATA MOTORS LIMITED
Tata Motors Limited is India's largest automobile company, with consolidated revenues of
Rs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The company is the world's fourth largest
truck manufacturer, and the world's second largest bus manufacturer.
The company's 24,000 employees are guided by the vision to be "best in the manner in which
we operate best in the products we deliver and best in our value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and
Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market,
while also exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and
subsequently the remaining stake in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a
global leader in body-building for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. In 2006, Tata Motors entered into joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand)
has begun production of the Xenon pickup truck, with the Xenon having been launched in
Thailand in 2008.
Tata Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America.
It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia,
Senegal and South Africa.
The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a
new segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT
and transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India
today. The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.
Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. . It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation
Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company's support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative health care. The goal of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies in our vehicles and operations for constantly enhancing environment
care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
HISTORY OF TATA MOTORS
The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel
vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and
machine 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-Benz
AG, West Germany. The company also used to manufacture pulp and paper making machinery.
In 1960 the company's name, which was Tata Locomotive & Engineering Company Ltd. was
changed to Tata Engineering & Locomotive Company Ltd. In the year 1987 the company
undertook to set up a new forge shop, a high output foundry line, a new paint shop as well as
augmentation of engine and gearbox manufacturing facilities, all at Jamshedpur
In 1991 during the year the company entered into a collaborative agreement with an
internationally renowned engine research and development organization to jointly develop higher
horsepower, fuel efficient diesel and petrol engines to meet the future requirements of the
company. The last quarter saw the company launching two new passenger vehicles, the SIERRA
and the ESTATE totally designed and manufactured in India. The company acquired a BIFR
company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco worked out to Rs.18
crores as against setting up of similar critical castings foundry. During the year company
launched new earth moving equipment TWK-3036 Tata Front End Wheel Loader. Two new
models in the EX series of hydraulic excavators were launched. A 10 tonne pick and carry
articulated crane, designed and developed in-house was also introduced. During the year
company entered into an agreement with Nachi-Fujikoshi Corporation, Japan to manufacture arc
and 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 manufacture
float 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 Company
would have a stake of 16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holset
Ltd., Tata Precision Industries, Singapore and Nita Company Ltd., are the joint Ventures of the
Company
Taking advantage of the broad banding policy announced by the Government of India, the
Company entered into a collaboration agreement with Honda Motor Co. Ltd., Japan, for the
manufacture of their `ACCORD' model of cars in India. On 22nd April, an agreement was
entered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a joint
venture company Mercedez-Benz India to manufacture `E' class paneyer cans and engines in
India.
During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were
developed. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sports
utility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus with
cummins 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. TELCO
is believed to have picked up the unit for Rs. 70 crore. The total cost of import duty would be Rs
100 crore. During the year a machine tool division was expanded so as to double its machine
building capacity and significantly reduce production times.
The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. Tata Holset's
turbo charger plant inaugurated on November 25, 1996.
In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) have emerged as
numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in
association with Citi Bank. The Company introduced a 9-tonne vehicle which was well received
in the market. A 40 tonne tractor trailer powered by a Tata Cummins Engineering was
introduced. The Company developed a low floor bus chassis to meet the specific needs of urban
transport. The Company signed a new agreement with Hitachi for manufacture of upgraded
versions of existing range of excavators.
The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with
Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car "Indica" to
be launched in December. Tata Engineering Locomotive Company Ltd (Telco) sold its
construction equipment business into a new subsidiary company, Telco Construction Equipment
Company Ltd. The Company in its small car segment has launched "Tata Indica" which evoked
an overwhelming response in the Indian market. A new range of cummins engine powered
vehicle 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, the
Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile
Corporation of Goa. The new project undertakes production of bodies on TATA chassis,
conforming to the most exacting international standards. Concorde Motors Ltd., a Joint Venture
between Tata Engineering and Jardine International Motors (Mauritius) Ltd. was appointed as
dealer for the Company's passenger cars in several cities across the country, in Feb 1998.
The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting
euro-I emission norms, a year before they are due to be introduced in the country. It is proposed
to make TCECL a one-stop shop for construction equipment and earthmoving machinery. In Oct
1999, the Company won the National award for R&D Efforts in Development of Indigenous
Technology in the Mechanical Engineering Industries Sector instituted by Department of
Scientific and Industrial Research, Ministry of Science and Technology for the year 1999. SKF
Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest
model
Tata Indica.
2000 saw the Company working towards introducing two new petrol-driven variants of its small
car Indica, powered by a multi-point fuel injection engine. The Company launched the Indica
2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. The
Company has won the National Technology Award for indigenous development and
commercialization of the Tata Indica car. The Company has launched its new hi-tech Indica
2000 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 year
FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the
company. The Central Pollution Control Board for Environmental Technology award has been
presented to Tata Engineering in recognition of its contribution towards efforts to conserve the
environment. TATA Engineering on September 10 announced the addition of MPFI petrol
version to the Indica V2 range.
In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13.34% launches
six 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 Zero
and Double Zero Pace cars). High Court Approves Tata Engineering's Financial Restructuring.
Tata Engg, BPCL tie up to market co-branded lubricants.Tata Steel's investment in Tata
Engineering has been hiked to Rs 117.98 crore over the last year. Telco names Sedan as Tata
Indigo.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. Receives
Teri's (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development
of strategies for sustainable development and environment-business council for sustainable
development) corporate social responsibility (CSR) awards for '01-02. Unleashes Safari's petrol
version; priced at Rs 9.35 lakh.
The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a binding Memorandum of
Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the
acquisition 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. In
the 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 Motors
launches new Indica V2 in Kerala. Tata Motors introduces new 'Indicab' for tour operators. The
much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned. Tata
Motors enters agreement with Ukraine bus building firm. Tata Motors enters into agreement with
Etalon. In a move to consolidate its presence in the light commercial vehicles segment, Tata
Motors has launched a new variant of its 407 series with increased pay load capacity called SFC
407EX. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors unveils Tata SFC
407 EX. Tata Motors inks agreement with Austrian, French companies. Acquires Daewoo
Commercial Vehicle Company Ltd (DWCV), Korea. Tata Motors launches most anticipated new
6-tn truck in India.
Tata Motors, the country's largest commercial vehicles manufacturer unveiled the new LPT
909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of passenger
cars, utility vehicles, pick-ups, trucks and buses for the South African market. Tata Motors has
launched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motors rolls out Tata
SFC 407EX BS II turbo light commercial vehicle.
Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. Tata Motors
rolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo with a price
tag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes in CVTech to
make parts for its small car. Tata Daewoo inks pact with Pakistan co.
Tata Motors has been presented the Golden Peacock Global Award for Corporate Social
Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007. Tata
Motors buys Nissan facility in S. Africa. Tata Motors has got a prestigious order from the Delhi
Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses. Tata Motors Ltd has
appointed Mr. P M Telang as Executive Director (Commercial Vehicles).
CURRENT SITUATION
The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. The
motor group was established in 1945 as part of the larger Tata Group. They have long been
known for their commercial vehicles and in the past ten years entered into the passenger car
market. Currently, Tata Motors has a line of five passenger vehicles and a large line of
commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both product
lines of the Tata Motors group have seen success, but much of this has been built upon the more
deeply established commercial vehicle product line.
Tata Motors commercial line has been established for several years in many market segments
such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motors
has 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 South
Korea’s second largest truck manufacturer. This acquisition gave Tata Motors a significant
presence in the Korean market. They have also entered into joint ventures with companies such
as Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucks
in Thailand.
Tata Motors have been making global headlines in the auto industry lately; the largest news
being their acquisition of Jaguar and Land Rover from Ford. “Tata paid 2.3 billion dollars to
Ford for the two brands that cost Ford 5.3 billion” (Carty, USA Today). This is a major step for
the company because it catapults them into the luxury car business which they are not known for
at this time. Tata, like many new businesses it acquires, is allowing this new segment of the
business to be run by previous management since they have more experience in the luxury
automotive business. “Tata will give us some space. They want us to run our business, be a
premium British car company” (Mike O’Driscoll, managing director of Jaguar). This is yet
another large acquisition for the Tata Motors group and could create great success for the
company in the near future.
Porter's five forces analysis is a framework for the industry analysis and business
strategy .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 from
mileage, pick-up, power steering to various other things so substitute is very important aspect in
this industry as other product available in the market may act as the substitute to the brands own
existing product.
2. The threat of the entry of new competitors-New completion from the new entrant or from
existing company is also highly potent force which a company must have to take care of for its
market share and growth.
3. The intensity of competitive rivalry-The very effective way of putting competitor out of track
is pitching new vibrant products in the market so a company must be aware of this tactics by its
rival company so that it can cater the effect.
4. The bargaining power of customers-Another important aspect for a car or auto company where
they 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 like
India where the demand is highly different with all across its dimension so, supply is very much
required 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
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
SWOT ANALYSIS
STRENGTH:
• 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
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
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
• 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 Tata's products run on Diesel fuel which is becoming
expensive globally and within its traditional home market.
WEAKNESS:
• 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 company's passenger car products are based upon 3rd and 4th generation platforms, which
put Tata Motors Limited at a disadvantage with competing car manufacturers.
• Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not
got a foothold in the luxury car segment in its domestic, Indian market. Is the brand
associated with commercial vehicles and low-cost passenger cars to the extent that it has
isolated itself from lucrative segments in a more aspiring India?
• One weakness which is often not 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.
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 that
the initial production of this car will be of 250,000 a year. After about four years of hard efforts
TATA Nano (1 lakh rupee car) was on road now.
The introduction of the Nano received media attention due to its targeted low price. The car
is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as
well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman
of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano
has been greatly appreciated by many sources and the media for its low-cost and eco-friendly
initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata
Group is expected to mass manufacture the Nano, particularly the electric-version, and, besides
selling them in India, to also export them worldwide.
Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in
road-accidents every year), and have also criticized the pollution that it would cause (including
criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised
that it would definitely release Nano's eco-friendly models alongside the gasoline model.
The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but
increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is
reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant
has been proposed for Sanand Gujarat. The company will bank on existing dealer network for
Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000
for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal
government.
The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarily
at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highway
and around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on January
10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23, 2009
and a booking period from April 9 to April 25, generating more than 200,000 bookings for the
car. The sales of the car begin in July 2009, with a starting price of Rs 115,000 (rupees). This is
cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at
184,641Rupees.
DESIGN
Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production
car in 2003, inspired by the number of Indian families with two-wheeled rather than four
wheeled vehicles. The Nano's development has been tempered by the company's success in
producing 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 of
India reported the vehicle is "a properly designed and built car". The Chairman is reported to
have said, "It is not a car with plastic curtains or no roof — it's a real car."
To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and
sought new design approaches from suppliers. The car was designed at Italy's Institute of
Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as
the elimination of one of two windscreen wipers. Some components of the Nano are made in
Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other
technologies.
The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an
8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three
versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air
conditioning, power windows, and central locking. Tata has set its initial production target at
250,000 units per year.
COST CUTTING FEATURES
• The Nano's 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.
• It has three nuts on the wheels instead of the customary four.
• It only has one side view mirror.
PRICE
Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming
for a starting price of 100,000 rupees or approximately, despite rapidly rising material prices at
the time.
As of August 2009, material costs had risen from 19% to 29% over the car’s development, and
Tata faced the choice of:
· Introducing the car with an artificially low price through government subsidies and tax breaks
forgoing profit on the car
· Using vertical-integration to artificially boost profits on cars at the expense of their materials
industries
· Partially using inexpensive polymers or biodegradable plastics instead of a full metal body
raising the price of the car
Nano 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 driver's, which will be adjustable, while the
deluxe and luxury models will get air conditioning and body coloured bumpers.
Technical Specifications
According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a
623 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 opposed
petrol engine will be used in a car with a single balance shaft. Tata Motors has reportedly filed
34 patents related to the innovations in the design of Nano, with powertrain accounting for over
half of them. The project head, Girish Wagh has been credited with being one of the brains
behind Nano's design.
Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the
New 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-cylinder
engine’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 has
tweaked existing technologies to target an as-yet untapped segment of the market", yet it has
been stated by the same sources that Nano is not quite "revolutionary in its technology", just low
in price. Moreover, technologies which are expected of the new and yet-to-be-released car
include a revolutionary compressed-air fuel system and an eco-friendly electric-version,
technologies on which Tata is reportedly already working, though no official incorporation-date
for 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'. Tata
Nano passed the required 'homologation’ tests with Pune-based Automotive Research
Association of India (ARAI).This means that the car has met all the specified criteria for
roadworthiness laid out by the government including emissions or noise & vibration and can now
ply 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’s
tests on its windshield. According to ARAI it conforms to Euro IV emission standards which will
come into effect in India in 2010.
REAR MOUNTED ENGINE
The use of a rear mounted engine to help maximize interior space makes the Nano similar to the
original Fiat 500, another technically innovative "people's car". A concept vehicle similar in
styling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the
1990s to succeed the original Mini but was not put into production. The eventual new Mini was
much larger and technically conservative. The independent, and now-defunct, MG Rover Group
later based their Rover CityRover on the Tata Indica.
Tata is also reported to be contemplating offering a compressed air engine as an option.
2. MODIFICATION IN TATA SUMO
The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to
launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of
changes in terms of refinement in this decade. It has been the favorite choice for cab owners, as it
is rugged and affordable.
The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff
competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a
carryover 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 7
Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a
2- litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel
engine 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. Tata's latest three variants
under 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) engine
SUMO SPACIO
A no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc DI
diesel engine sourced from the popular LCV Tata 407. The prominent visual difference was the
presence of round headlamps instead of the rectangular lamps. A soft top version of the Spacio
called the Spacio ST was also introduced for the rural markets. After the facelift, the Spacio
inherited the styling elements of the older Tata Sumo. In 2007, the Victa became available with
the Spacio's 3000 cc engine. And in terms of styling, the positioning of the spare wheel was
changed from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10
seater variants and is very much popular with private transporters & contract taxi vendors
because of its lower cost.
SUMO VICTA
The new Sumo Victa released in 2004 featured power windows, power steering, dual AC, central
locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti-glare ORVMS
with 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 cc
120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up
market version of the Sumo available and features completely different body work. It lies below
the Tata Safari in Tata's product portfolio.
3. NEW VERSIONS OF INDIGO, INDIGO DICOR
Dicor Variants
The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has
already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver
maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been
made apt for Indian roads especially with its driver & co passengers oriented positive attributes
such 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 engine
Indigo LX Dicor
Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear
view window, black dials with chrome rings & star check as the new pattern for its console &
AC fascia.
Indigo LS Dicor
Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz
silver as the new pattern for console & AC fascia. It has no mounted LCD screens.
4. TAPPING OF RURAL MARKET
According to the National Council for Applied Economic Research, or NCAER, rural India
accounts for 70% of India’s population, 56% of the national income, 64% of the total
expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets
pale 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. NCAER
data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16
trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will
be 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 which
runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets.
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 Garg
Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July
2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The
company’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599
nos., 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 lower
by 1%, compared to 172,462 nos. sold last year.
Commercial Vehicles: The Company’s sales of commercial vehicles in July 2009 in the
domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July
last year.
LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658
nos. turning positive after almost a year with a growth of 6% over July last year and the highest
since 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., a
growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over
last year.
Passenger Vehicles
The passenger vehicle business reported a total sale and distribution offtake of 19,881
nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to
15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by
21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were
2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July lastyear. The
Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range
of 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 the
brands’ flagship store in Mumbai. The response has been quite encouraging in the first month
with the initial India stock and pipeline imports booked to a large extent.
Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the
fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813
Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range
at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422
nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%.
Exports
The Company’s sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared
to 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. Sardha
Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a standalone basis
for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared
to Rs.6928.44 crores in the corresponding quarter previous
year.
The company’s continued focus on cost efficiencies, coupled with reduction of raw material
prices, inventory reduction and improvement in sales realisation, yielded considerable benefits
resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating
profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the
previous year.
Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09
crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of
57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due to
increased debt taken by the company during the previous year to support its product
programmes, investments and working capital requirements and depreciation at Rs.229.12
crores was higher by 26.7% reflecting the increased investments in new products and supporting
capabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreign
exchange 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 products
and variants improved the company’s sales, except in the case of the heavy truck segment. The
heavy truck segment is recovering, albeit slowly, in response to infrastructure development,
Government stimulus packages for the automobile industry and Jawaharlal Nehru National
Urban 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 vehicles
continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global
environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared
to the corresponding quarter of the previous year. The company gained market share in
commercial vehicles to 67.4% during the quarter compared with 61% in the corresponding
quarter 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 been
growing sequentially every month of the quarter breaking into positive growth in June. The
market share for Tata passenger vehicles has sequentially improved from April to June 2009 with
the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the
company has a joint market share of 12.3% in the industry.
The company continues to upgrade its resources to leverage emerging opportunities. In
commercial 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 which
are being gradually launched in India and also in select international markets over a period of
time. An all-new Starbus range of buses has also been introduced. A new mileage enhancing
automatic 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 State
Governments 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. The
company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the
Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat
Grande Punto in June 2009.
The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. The
consolidated financial results for the 1st quarter of Financial Year would
be voluntarily disclosed separately in due course.
Released on: 17th July, 2009
TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI
- Rojar R. Karm
Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has become
the 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, at
the company’s dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, “I
hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as
also 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 their
cars today.
As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different
towns 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 Sure
Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles were
45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company’s
domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were
43,244 nos., a 1% decline over 43,814 nos. sold in June last year.
Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined
by 7%, compared to 131,733 nos. sold last year.
Commercial Vehicles
The Company’s sales of commercial vehicles in June 2009 in the domestic market were 26,205
nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256
nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of
23% over June 2008 but an increase of 15% over May 2009.
Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal
were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626
nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth
of 27% over last year.
Passenger Vehicles
The 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 to
17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos.
(15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month
at sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of
3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009.
The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June
2008, but a growth of 29.7% over 2,550 nos. of May 2009.
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 the
quarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401
Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported a
growth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over the
same period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of
35%.
Exports
The Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to
3,431 vehicles in June 2008. The cumulative sales from exports for the fiscal at 5,220 nos.
declined by 43% over 9,159 nos. in the same period last year.
Released on: 28th June, 2009
FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA
Jaguar Land Rover's official entry to the fast-growing Indian car market was marked today by
the 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 Rover's award-winning vehicles are well known around the world. Jaguar has
become one of the world's leading producers of beautiful fast cars. Land Rover produces the
world’s most versatile all-terrain vehicles, combining refined luxury with a true breadth of
capability.
The exciting new range of premium luxury vehicles available for the Indian market will include
the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range
Rover. 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-class
Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rover
vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark
experience in luxury car sales in India, with plans to develop the dealer network throughout 2009
and 2010.
Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased
and proud to introduce the Jaguar Land Rover brands in the Indian market and give the
discerning Indian customer direct access to these prestigious brands, accompanied by a parts and
service network. We hope that they will delight customers in India just as they have done in
markets the world over."
Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have
officially opened our first showroom in India. It is an exciting time to be entering the Indian
market, a country with increasing affluence and an economy which is still growing. We believe
100 that the Indian market holds significant growth potential in the long term, and we hope to tap
the demand for premium vehicles from discerning customers."
Released on: July 7, 2009
TATA MOTORS TO INTRODUCE AIR CAR
– Ben MaGreow
Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar
deal, then the world's 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 $150 per barrel, it is about time we heard some breakthrough!
India's largest automaker Tata Motors is set to start producing the world's first commercial air-
powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for
Luxembourg-based MDI, uses compressed air, as opposed to the gasand- oxygen explosions of
internalcombustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are
scheduled to hit Indian streets by August of 2009.
The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would
have 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 world's
cheapest 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 welded
and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in
the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no
keys - 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 petrol
car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10
hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists
drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the
market develops, take place at adapted petrol stations to administer compressed air. In two or
three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200-
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 every
50,000Km.] The temperature of the clean air expelled by the exhaust pipe is between 0-15
degrees below zero, which makes it suitable for use by the internal air conditioning system with
no need for gases or loss of power.
Released on: 26th June, 2009
Consolidated Revenue in 2008-09 Rs. 70938.85 crores,
Loss after Tax Rs. 2505.25 crores
Tata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. The
consolidated financial performance of the company is not comparable to 2007-08 on account of
the acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenue
was 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 2008-09
of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70
crores.
Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (2007- 08: Profit
of Rs. 56.24) for its consolidated operations.
Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net of
excise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year was
Rs.1001.26 crores.
Business Highlights:
Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in the
first half of 2008. However, the global meltdown, especially after July 2008 with vehicle
financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land
Rover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able to
maintain the sales level primarily on the back of a very strong consumer response to the newly
launched XF sedan.
The company has actively responded to this changed situation by taking a number of urgent and
long term measures. These include cutting costs drastically and working on a plan of substantial
cost reduction, aligning production with demand and tight control over cash flows. In addition,
Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land
Rover 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 domestic
performance, it strongly grew exports. The company is focusing on aggressive growth in both
home and international markets harnessing stimulus packages announced by different
governments, as also product development initiatives.
Telcon:
The company has launched several new products, but was impacted by the credit squeeze in the
third quarter of the year. It expects demand revival supported by infrastructure spend in the
country.
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 plans
include strengthening in-house design and validation capabilities and expanding customer base
in India and broad.
TMFL:
In line with Tata Motors’ sales in 2008-09, there was a decline in disbursals. It is focused on
incremental captive vehicle financing of Tata Motors through increased securitisation and
borrowings on its own books with higher ability to leverage.
Tata Technologies:
The company has consolidated position among the top three solutions and software provider of
leading Engineering and PLM products in all major geographies winning several projects, and
has expanded presence in aerospace design and aero structures. While the year ahead is
challenging, it has developed appropriate business structures and processes to strengthen
relationship with strategic clients.
Released on: 29th May, 2009
Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores,
and Net Profit lower at Rs.1001.26 crores, due to market upheaval
Tata 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 automobile
industry.
Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores
in 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared to
Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year was
Rs.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 finance
throughout the year; particularly in the October-December quarter post the global financial
market upheavals. The impact on heavy commercial vehicles was more severe, abetted by
reduction in freight movement in different segments and customer concerns on economic
conditions. Small commercial vehicles, like the Tata Ace and the Tata Magic, have continued to
improve penetration.
Stimulus packages from the Government in the last quarter of the year have to an extent helped
regenerate overall sales, as in the automobile industry, but growth is yet to revive to earlier
levels.
The fall in volumes combined with peak input prices and high interest rates brought margins
under pressure. The company accelerated cost reduction measures and proactively managed
working 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. The
company retained its domestic leadership position in commercial vehicles, and continued to be
amongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to
265,373 units (2007-08: 312,935 units). The company increased market share in commercial
vehicles to 63.8% (2007-08: 62.2%), aided by its wide product offering. Domestic passenger
vehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the second
generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped
recover 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, introduced
during the year or the previous year, offering benefits like higher fuel efficiency, grew at a faster
rate and helped enhance market share.
The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, and
the launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings were
received for the Tata Nano, the deliveries of which will begin from July 2009. The Pantnagar
plant began producing the Tata Nano during the year, while the Sanand plant is rapidly
progressing towards completion.
DIVIDEND
The Board of Directors has recommended a dividend of Rs.6/- per Ordinary share and Rs.6.50
per ‘A’ Ordinary share of Rs.10/- each for the financial year 2008-09 (2007- 08: Rs.15/- for
Ordinary share). The dividend is subject to approval of shareholders; tax on the dividend will be
borne by the Company.
The Audited Financial Results for the financial year ended March 31, 2009, are enclosed.
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work. This includes
the 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 sources
RESEARCH DESIGN:
Research Design is the arrangement for conditioned for data collection & analysis of data in a
manner 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 blue
print that is followed in completing study.
The research conducted by me is a descriptive research. This is descriptive in nature because
study 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 the
technique or the procedure that researcher would adopt in selecting items to be inched in the
sample i.e. the size of sample. Sampling plan is determined before data are collected.
STEPS IN SAMPLING PLAN:
SAMPLING FRAME:
The list of sampling units from which sample is taken is called sampling frame. Rourkela City
map was studied thoroughly and samples were selected from the place in a scattered manner to
get 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 SECTOR
SAMPLING PROCEDURE:
The selection of respondents were accordingly to be in a right place at a right time and so the
sampling were quite easy to measure, evaluate and co-operative. It was a randomly area
sampling 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 50
people in all. I had done my field work in the following area.
CIVIL TOWNSHIP, CHHEND, BASANTY COLONY, KOELNAGAR, SECTOR
I started my project very first educating the respondents about my entire project, and ask them to
co–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’t
face any type of difficulty during my project in the process of explaining and taking their
responses on the questionnaire.
RESULTS AND ANALYSIS
Tata Motor`s exclusive showrooms
The 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 were
provided to the respondents for rating are – store ambience, sales personnel, after sales service
and display of watches.
Consumer perception of store ambience
36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “Above
Average” and “Excellent”. This proves that store ambience plays an important role in consumer
perception of service quality.
Consumer perception of sales personnel
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 service
In 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
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 gave
rating of “Average”.
Overall perception about Tata showrooms
The respondents were also asked to give overall rating to Tata`s exclusive showrooms. It was
found that out of total 50 respondents, 30 rated as “good” while the remaining considered the
showrooms 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 of
cars in the showrooms play a major role in determining the customer perception about brand.
Car customers
No. of people
First time user 23
More than once 27
21
22
23
24
25
26
27
Firsttimeuser
Morethanonce
23% 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
0
5
10
15
20
25
30
Satisfied
Notsatisfied
21% 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
0
5
10
15
20
25
30
35
Yes
No
17% 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
0
5
10
15
Yes
No
15% people were favorable towards Tata passenger cars creating brand value whereas 5% were
against it.
Factors affecting buying of customers
Features No. of people
Power steering 10
Mileage 12
Price 20
Others 8
0
5
10
15
20
Powersteering
Mileage
Price
Others
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
0
5
10
15
20
25
30
1year
1-3years
3-5years
5-10years
Above10years
30% people replied that they were associated with Tata motors for more than 5 years whereas
20% replied that they own Tata car for more than 10 years.
Knowledgeable salesperson
No. of people
Strongly Disagree 0
Disagree 0
Neither disagree nor
agree
0
Agree 36
Strongly agree 14
0
5
10
15
20
25
30
35
40
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
36% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the
sales persons are knowledgeable.
Employee spent enough time with you before sales
No. of people
Strongly Disagree 0
Disagree 0
Neither disagree nor
agree
0
Agree 34
Strongly agree 16
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
34% 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
agree
0
Agree 32
Strongly agree 14
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
62% agreed that sales persons spent enough time with them during the sales, while 34% strongly
agreed that the sales persons spent enough time with them during sales and only 4% disagreed
with this.
Availability of the product
No. of people
Strongly Disagree 0
Disagree 4
Neither disagree nor
agree
0
Agree 31
Strongly agree 5
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
31% agreed that the availability of the product was there, 5% strongly agreed that the availability
was there while only 4% said they disagreed with this.
Prices are affordable
No. of people
Strongly Disagree 0
Disagree 2
Neither disagree nor
agree
5
Agree 21
Strongly agree 22
0
5
10
15
20
25
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
22% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable
whereas 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
agree
0
Agree 27
Strongly agree 17
0
5
10
15
20
25
30
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
27% 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
agree
0
Agree 24
Strongly agree 6
0
5
10
15
20
25
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
24%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was
offered while 20% disagreed with this.
Responds to complain quickly
No. of people
Strongly Disagree 0
Disagree 9
Neither disagree nor
agree
11
Agree 20
Strongly agree 10
0
5
10
15
20
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
20% agreed that the response to complaints is quick, 10% strongly agreed, 11% neither agreed
nor disagreed and 9% disagreed with this.
Careful with personal information
No. of people
Strongly Disagree 0
Disagree 0
Neither disagree nor
agree
8
Agree 35
Strongly agree 7
0
5
10
15
20
25
30
35
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
35% agreed that yes they were careful with personal information, 7% strongly agreed with this
and 8% neither agreed nor disagreed.
Commitments are fulfilled
No. of people
Strongly Disagree 0
Disagree 7
Neither disagree nor
agree
0
Agree 6
Strongly agree 37
0
5
10
15
20
25
30
35
40
Strongly
Disagree
Disagree
Neitherdisagree
noragree
Agree
Stronglyagree
37% 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
0
5
10
15
20
25
30
35
40
Indica
Indigo
Safari
Sumo
Xenon
Nano
13% 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
0
5
10
15
20
25
30
35
40
Design
Price
Brandimage
Goodquality
39% 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
0
10
20
30
40
50
TV
Magazines
Newspapers
Radio
46% responded TV while 25% magazines, 36%newspapers and 4% radio.
Awareness of brand ambassador
No. of people
Yes 6
No 44
0
10
20
30
40
50
Yes
No
6% 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
0
20
40
60
80
100
Verybad
Bad
Neitherbadnor
good
Good
Verygood
96% said that there overall opinion about TATA was that it is very good while 4% said that it is
good.
Overall opinion about TATA
No. of people
Very unlikely 0
Unlikely 0
Neither unlikely nor likely 0
Likely 10
Very likely 90
0
20
40
60
80
100
Veryunlikely
Unlikely
Neitherunlikely
norlikely
Likely
Verylikely
90% people said they would very likely recommend TATA to other people and 10% said they
would likely recommend TATA to others.
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.
CONCLUSION
The study was conducted to measure,” Repositioning Strategy of Tata Motors and its
acceptance level in customer - A study in Rourkela Market “. The study was conducted on 50
Customers. A questionnaire was designed to understand the Repositioning Strategy of Tata
Motors and its acceptance level in customer in Rourkela market. Based on the questionnaire, data
was 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 market
situation. An earnest attempt has been made to make the study realistic and suggestive, but it is
not claimed that the findings and suggestions in the report are perfect.
The suggestions to improve consumer awareness about brand repositioning strategy of Tata
Motors 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
• Quality
The two ways firms compete are by either a differentiation strategy or a low cost strategy.
However, as we've seen the route TML has taken involves competing on both strategies. While
the Nano targets the price conscious common man, the Jaguar Land Rover deal shows us that
TML is now targeting brand conscious, high-end consumers. TML needs to have a similar
differentiated 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 deliver
and best in our value systems and ethics”. TML has come to be known as an innovator in the
passenger 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 and
bear testimony to the strength of the company’s R&D efforts. This innovation fuelled growth
coupled with strategic acquisitions is expected to catapult the company to a preeminent position
internationally.
APPENDICES
QUESTIONNAIRE
1) 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?
Yes No� �
4) What is your experience from the previous vehicle?
Satisfied Not satisfied� �
5) Which is the most essential thing you prefer while buying vehicle?
Price Mileage Power steering Others� � � �
6) Does TV ad appeal you?
Yes No� �
7) Do you like TV programs on car?
Yes No� �
8) Does brand value affect your decision on buying vehicle?
Yes No� �
9) How long have you been associated with Tata Motors?
10) How would you rate TATA Motors on the following parameter?
Strongly
disagree
Disagree Neither
agree nor
disagree
Agree Strongly
agree
a) Knowledgeable
salesperson
b) Employees
spent enough
time
with you:
before sales
During sales
After sales
c) Availability of
the product
d) Prices are
affordable
e) Attractive
discounts
offered
f) Offered a test
drive
g) Responds to
complaints
quickly
h) Careful with
personal
information
i) All the
commitments
are fulfilled
11) What is your overall opinion about Tata Motors?
Very Bad Bad Neither Bad nor Good Good Very Good
1 2 3 4 5
12) How likely would you recommend Tata Motors?
Very Unlikely Very Likely
1 2 3 4 5
REFERENCES
BOOKS
• ICFAI Journal of Marketing Management
• ICFAI Journal of Brand Management
• ICFAI, Strategic Marketing Management
• ICFAI, Business Strategy
INTERNET
• www.tata.com
• www.tatamotors.com
• http://en.wikipedia.org/wiki/Tata_motors
• http://en.wikipedia.org/wiki/Tata_group
• http://en.wikipedia.org/wiki/Indian_automobile_industry
• http://www.carwale.com/research/cars/tata
• http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull
• http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull
• www.scribd.com
• www.thehindubusinessline.com

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tata motors thesis

  • 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) DECLARATION
  • 3. CERTIFICATE This is to certify that the Management Thesis titled “Repositioning Strategy of Tata Motors and its 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 Student Name (in Capitals) : PRANAB MISHRA Enroll Number : 8NBRU032 Campus : INC ROURKELA Signature of the Faculty Supervisor Name (in Capitals) : MRS. ASMITA JHA Designation : HR FACULTY Campus : INC ROURKELA
  • 4. TABLE OF CONTENTS 1. Acknowledgements. 2. Introduction 3. Objectives. 4. Limitations. 5. Research Methodology. 6. Results and analysis 7. Findings. 8. Conclusions. 9. Appendices. 10. References.
  • 5. ACKNOWLEDGEMENTS Any accomplishment requires the effort of many people and this work is not different. I am thankful to my faculty supervisor Mrs. Asmita Jha for supporting me and guiding me throughout the project. This report would not have been possible without her help. I would also like to express my gratitude towards Mr. Bishan Singh, INDERA MOTORS, Rourkela for his cooperation 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 and inspiring me to do my project with full dedication. PRANAB MISHRA
  • 6. INTRODUCTION The rapid pace of change and intense competitive pressure in today's marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position. In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. The appeal of brand repositioning is further heightened 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 been treated 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 repositioning strategies relates to the management of consumers' perceptions. However, positioning focuses on the creation of brand associations - consumers' perceptions of the attributes that differentiate the brand from competitive offers – while repositioning also implies managing existing brand associations. The unique challenge of a repositioning strategy, thus, lies in rejuvenating the brand image 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. Through repositioning the company can reach customers they not intended to reach in the first place. If a brand has been established at the market for some time and wish to change their image they can consider repositioning, although one of the hardest actions in marketing is to reposition a familiar brand. According to Solomon, position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding of the position. During the movement from something less attractive and relevant towards a more attractive and relevant position several of strategic choices has to be made. The ones responsible for the repositioning have to evaluate why a reposition is necessary, and if the offer is the one who will change or just the brand name. There are several risk factors that have to 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 a thorough strategy is therefore necessary to avoid this occurrence. Some analyst argue that to successfully reposition a establish brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition is in question it has to be of relevance from a customer perspective, is this achievable? Some brands will on no account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand image or the actual company. Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic. For example, while the soft drink brand, Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence, Levis' Jeans has been losing market share to newcomers such as The Gap, despite numerous 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 a better understanding of the dynamics of brand repositioning. Specifically, questions of whether, when and how brands should be repositioned need to be addressed. Research into brand repositioning is relevant not only to the development of brand management theory, but also extends to corporate strategy through an examination of corporate brands. Indian Automobile Industry The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent over 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 backward linkages 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 percent growth 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 Maruti 800 to latest M&M Xylo. The industry is highly competitive with a number of global and Indian companies present today. It is projected to be the third largest auto industry by 2030 and just behind to US & China, according to a report. The industry is estimated to be a US$ 34 billion industry. 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 as foreign 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. And India is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered 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 got into the merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero with Honda, 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 lakh units 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 PROFILE TATA MOTORS LIMITED Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and
  • 11. coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously developed mini-truck. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its mono-volume design will set a new benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India today. The lean design strategy has helped minimize weight, which helps maximize performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost.
  • 12. Tata Motors is equally focused on environment-friendly technologies in emissions and alternative fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It has also been implementing several environment-friendly technologies in manufacturing processes, significantly enhancing resource conservation Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas – employability, education, health and environment. The activities touch the lives of more than a million citizens. The company's support on education and employability is focused on youth and women. They range from schools to technical education institutes to actual facilitation of income generation. In health, our intervention is in both preventive and curative health care. The goal of environment protection is achieved through tree plantation, conserving water and creating new water bodies and, last but not the least, by introducing appropriate technologies in our vehicles and operations for constantly enhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future. HISTORY OF TATA MOTORS The Company was incorporated on 1st September 1945 at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine 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-Benz AG, West Germany. The company also used to manufacture pulp and paper making machinery. In 1960 the company's name, which was Tata Locomotive & Engineering Company Ltd. was changed to Tata Engineering & Locomotive Company Ltd. In the year 1987 the company undertook to set up a new forge shop, a high output foundry line, a new paint shop as well as augmentation of engine and gearbox manufacturing facilities, all at Jamshedpur In 1991 during the year the company entered into a collaborative agreement with an internationally renowned engine research and development organization to jointly develop higher horsepower, fuel efficient diesel and petrol engines to meet the future requirements of the company. The last quarter saw the company launching two new passenger vehicles, the SIERRA and the ESTATE totally designed and manufactured in India. The company acquired a BIFR company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco worked out to Rs.18 crores as against setting up of similar critical castings foundry. During the year company launched 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 carry articulated crane, designed and developed in-house was also introduced. During the year company entered into an agreement with Nachi-Fujikoshi Corporation, Japan to manufacture arc and 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 manufacture float 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 Company would have a stake of 16.33%. Tata Cummins Ltd., Mercedes-Benz (India) Ltd., Tata Holset Ltd., Tata Precision Industries, Singapore and Nita Company Ltd., are the joint Ventures of the Company Taking advantage of the broad banding policy announced by the Government of India, the Company entered into a collaboration agreement with Honda Motor Co. Ltd., Japan, for the manufacture of their `ACCORD' model of cars in India. On 22nd April, an agreement was entered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a joint venture company Mercedez-Benz India to manufacture `E' class paneyer cans and engines in India. During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were developed. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sports utility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus with cummins 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. TELCO is believed to have picked up the unit for Rs. 70 crore. The total cost of import duty would be Rs 100 crore. During the year a machine tool division was expanded so as to double its machine building capacity and significantly reduce production times. The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. Tata Holset's turbo charger plant inaugurated on November 25, 1996. In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) have emerged as numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in association with Citi Bank. The Company introduced a 9-tonne vehicle which was well received in the market. A 40 tonne tractor trailer powered by a Tata Cummins Engineering was introduced. The Company developed a low floor bus chassis to meet the specific needs of urban transport. The Company signed a new agreement with Hitachi for manufacture of upgraded versions of existing range of excavators. The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car "Indica" to be launched in December. Tata Engineering Locomotive Company Ltd (Telco) sold its construction equipment business into a new subsidiary company, Telco Construction Equipment Company 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 powered vehicle 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, the Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile Corporation of Goa. The new project undertakes production of bodies on TATA chassis, conforming to the most exacting international standards. Concorde Motors Ltd., a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius) Ltd. was appointed as dealer for the Company's passenger cars in several cities across the country, in Feb 1998. The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting euro-I emission norms, a year before they are due to be introduced in the country. It is proposed to make TCECL a one-stop shop for construction equipment and earthmoving machinery. In Oct 1999, the Company won the National award for R&D Efforts in Development of Indigenous Technology in the Mechanical Engineering Industries Sector instituted by Department of Scientific and Industrial Research, Ministry of Science and Technology for the year 1999. SKF Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest model Tata Indica. 2000 saw the Company working towards introducing two new petrol-driven variants of its small car Indica, powered by a multi-point fuel injection engine. The Company launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. The Company has won the National Technology Award for indigenous development and commercialization of the Tata Indica car. The Company has launched its new hi-tech Indica 2000 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 year FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the company. The Central Pollution Control Board for Environmental Technology award has been presented to Tata Engineering in recognition of its contribution towards efforts to conserve the environment. TATA Engineering on September 10 announced the addition of MPFI petrol version to the Indica V2 range. In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13.34% launches six 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 Zero and Double Zero Pace cars). High Court Approves Tata Engineering's Financial Restructuring. Tata Engg, BPCL tie up to market co-branded lubricants.Tata Steel's investment in Tata Engineering has been hiked to Rs 117.98 crore over the last year. Telco names Sedan as Tata Indigo.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. Receives Teri's (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development and environment-business council for sustainable
  • 15. development) corporate social responsibility (CSR) awards for '01-02. Unleashes Safari's petrol version; priced at Rs 9.35 lakh. The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a binding Memorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the acquisition 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. In the 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 Motors launches new Indica V2 in Kerala. Tata Motors introduces new 'Indicab' for tour operators. The much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned. Tata Motors enters agreement with Ukraine bus building firm. Tata Motors enters into agreement with Etalon. In a move to consolidate its presence in the light commercial vehicles segment, Tata Motors has launched a new variant of its 407 series with increased pay load capacity called SFC 407EX. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors unveils Tata SFC 407 EX. Tata Motors inks agreement with Austrian, French companies. Acquires Daewoo Commercial Vehicle Company Ltd (DWCV), Korea. Tata Motors launches most anticipated new 6-tn truck in India. Tata Motors, the country's largest commercial vehicles manufacturer unveiled the new LPT 909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of passenger cars, utility vehicles, pick-ups, trucks and buses for the South African market. Tata Motors has launched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motors rolls out Tata SFC 407EX BS II turbo light commercial vehicle. Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. Tata Motors rolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes in CVTech to make parts for its small car. Tata Daewoo inks pact with Pakistan co. Tata Motors has been presented the Golden Peacock Global Award for Corporate Social Responsibility (CSR) in the Large Business category by the Institute of Directors in 2007. Tata Motors buys Nissan facility in S. Africa. Tata Motors has got a prestigious order from the Delhi Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses. Tata Motors Ltd has appointed Mr. P M Telang as Executive Director (Commercial Vehicles).
  • 16. CURRENT SITUATION The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. The motor group was established in 1945 as part of the larger Tata Group. They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both product lines of the Tata Motors group have seen success, but much of this has been built upon the more deeply established commercial vehicle product line. Tata Motors commercial line has been established for several years in many market segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motors has 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 South Korea’s second largest truck manufacturer. This acquisition gave Tata Motors a significant presence in the Korean market. They have also entered into joint ventures with companies such as Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucks in Thailand. Tata Motors have been making global headlines in the auto industry lately; the largest news being their acquisition of Jaguar and Land Rover from Ford. “Tata paid 2.3 billion dollars to Ford for the two brands that cost Ford 5.3 billion” (Carty, USA Today). This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time. Tata, like many new businesses it acquires, is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business. “Tata will give us some space. They want us to run our business, be a premium British car company” (Mike O’Driscoll, managing director of Jaguar). This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future. Porter's five forces analysis is a framework for the industry analysis and business strategy .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 from mileage, pick-up, power steering to various other things so substitute is very important aspect in this industry as other product available in the market may act as the substitute to the brands own existing product. 2. The threat of the entry of new competitors-New completion from the new entrant or from existing company is also highly potent force which a company must have to take care of for its market share and growth.
  • 17. 3. The intensity of competitive rivalry-The very effective way of putting competitor out of track is pitching new vibrant products in the market so a company must be aware of this tactics by its rival company so that it can cater the effect. 4. The bargaining power of customers-Another important aspect for a car or auto company where they 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 like India where the demand is highly different with all across its dimension so, supply is very much required 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
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  • 21. SWOT ANALYSIS STRENGTH: • 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
  • 22. 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
  • 23. 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
  • 24. • 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 Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. WEAKNESS:
  • 25. • 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 company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. • Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? • One weakness which is often not 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.
  • 26. 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 that the initial production of this car will be of 250,000 a year. After about four years of hard efforts TATA Nano (1 lakh rupee car) was on road now. The introduction of the Nano received media attention due to its targeted low price. The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to mass manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide. Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised that it would definitely release Nano's eco-friendly models alongside the gasoline model. The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government.
  • 27. The Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 26.00km/l on the highway and around 22.00km/l in the city. It was first presented at the 9th annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi. Nano had a commercial launch on March 23, 2009 and a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car begin in July 2009, with a starting price of Rs 115,000 (rupees). This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 184,641Rupees. DESIGN Ratan Tata, the Chairman of Tata Motors, began development of the world's cheapest production car in 2003, inspired by the number of Indian families with two-wheeled rather than four wheeled vehicles. The Nano's development has been tempered by the company's success in producing 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 of India reported the vehicle is "a properly designed and built car". The Chairman is reported to have said, "It is not a car with plastic curtains or no roof — it's a real car." To achieve its design goals, Tata refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers. The car was designed at Italy's Institute of Development in Automotive Engineering — with Ratan Tata requesting certain changes, such as the elimination of one of two windscreen wipers. Some components of the Nano are made in Germany by Bosch, such as Fuel Injection, brake system, Value Motronic ECU, ABS and other technologies. The Nano has 21% more interior space (albeit mostly as headroom, due to its tall stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800. Tata offered the car in three versions: the basic Tata Nano Std; the Cx; and the Lx. The Cx and Lx versions each have air conditioning, power windows, and central locking. Tata has set its initial production target at 250,000 units per year. COST CUTTING FEATURES • The Nano's 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. • It has three nuts on the wheels instead of the customary four. • It only has one side view mirror.
  • 28. PRICE Tata initially targeted the vehicle as "the least expensive production car in the world"— aiming for a starting price of 100,000 rupees or approximately, despite rapidly rising material prices at the time. As of August 2009, material costs had risen from 19% to 29% over the car’s development, and Tata faced the choice of: · Introducing the car with an artificially low price through government subsidies and tax breaks forgoing profit on the car · Using vertical-integration to artificially boost profits on cars at the expense of their materials industries · Partially using inexpensive polymers or biodegradable plastics instead of a full metal body raising the price of the car Nano 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 driver's, which will be adjustable, while the deluxe and luxury models will get air conditioning and body coloured bumpers. Technical Specifications According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 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 opposed petrol engine will be used in a car with a single balance shaft. Tata Motors has reportedly filed 34 patents related to the innovations in the design of Nano, with powertrain accounting for over half of them. The project head, Girish Wagh has been credited with being one of the brains behind Nano's design. Much has been made of Tata's patents pending for the Nano. Yet during a news conference at the New Delhi Auto Expo, Ratan Tata pointed out none of these is revolutionary or represents earth-
  • 29. shaking technology. He said most relate to rather mundane items such as the two-cylinder engine’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 has tweaked existing technologies to target an as-yet untapped segment of the market", yet it has been stated by the same sources that Nano is not quite "revolutionary in its technology", just low in price. Moreover, technologies which are expected of the new and yet-to-be-released car include a revolutionary compressed-air fuel system and an eco-friendly electric-version, technologies on which Tata is reportedly already working, though no official incorporation-date for 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'. Tata Nano passed the required 'homologation’ tests with Pune-based Automotive Research Association of India (ARAI).This means that the car has met all the specified criteria for roadworthiness laid out by the government including emissions or noise & vibration and can now ply 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’s tests on its windshield. According to ARAI it conforms to Euro IV emission standards which will come into effect in India in 2010. REAR MOUNTED ENGINE The use of a rear mounted engine to help maximize interior space makes the Nano similar to the original Fiat 500, another technically innovative "people's car". A concept vehicle similar in styling to the Nano, also with rear engined layout was proposed by the UK Rover Group in the 1990s to succeed the original Mini but was not put into production. The eventual new Mini was much larger and technically conservative. The independent, and now-defunct, MG Rover Group later based their Rover CityRover on the Tata Indica. Tata is also reported to be contemplating offering a compressed air engine as an option.
  • 30. 2. MODIFICATION IN TATA SUMO The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of changes in terms of refinement in this decade. It has been the favorite choice for cab owners, as it is rugged and affordable. The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a carryover 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 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a 2- litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine 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. Tata's latest three variants under 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) engine SUMO SPACIO A no-frills version called the Tata Spacio is also available. It is equipped with a 3000 cc DI diesel engine sourced from the popular LCV Tata 407. The prominent visual difference was the presence of round headlamps instead of the rectangular lamps. A soft top version of the Spacio called the Spacio ST was also introduced for the rural markets. After the facelift, the Spacio inherited the styling elements of the older Tata Sumo. In 2007, the Victa became available with the Spacio's 3000 cc engine. And in terms of styling, the positioning of the spare wheel was changed from the rear tailgate to the underbody of the vehicle. This model comes in 8 and 10 seater variants and is very much popular with private transporters & contract taxi vendors because of its lower cost. SUMO VICTA The new Sumo Victa released in 2004 featured power windows, power steering, dual AC, central locking, clear lens multi reflector head lamps, crystal finish tail lamp cluster, anti-glare ORVMS with 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 cc 120 bhp (89 kW; 122 PS) DICOR (Direct Injection Common Rail) engine. It is the most up market version of the Sumo available and features completely different body work. It lies below the Tata Safari in Tata's product portfolio.
  • 31. 3. NEW VERSIONS OF INDIGO, INDIGO DICOR Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been made apt for Indian roads especially with its driver & co passengers oriented positive attributes such 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 engine Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window, black dials with chrome rings & star check as the new pattern for its console & AC fascia. Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens. 4. TAPPING OF RURAL MARKET According to the National Council for Applied Economic Research, or NCAER, rural India accounts for 70% of India’s population, 56% of the national income, 64% of the total expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets pale 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. NCAER data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will be 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 which runs on cash. Tata motors ltd. is working on strategies to make inroads into these markets.
  • 32. 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 Garg Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in July 2009 were 48,054 vehicles, a growth of 18% over 40,729 vehicles sold in July 2008. The company’s domestic sales of Tata commercial and passenger vehicles for July 2009 were 45,599 nos., 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 lower by 1%, compared to 172,462 nos. sold last year. Commercial Vehicles: The Company’s sales of commercial vehicles in July 2009 in the domestic market were 28,408 nos., a 27% growth compared to 22,381 vehicles sold in July last year. LCV sales were 17,750 nos., a growth of 44% over July last year. M&HCV sales stood at 10,658 nos. turning positive after almost a year with a growth of 6% over July last year and the highest since 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., a growth of 32% over last year, while M&HCV sales stood at 37,284 nos. was lower by 19% over last year. Passenger Vehicles The passenger vehicle business reported a total sale and distribution offtake of 19,881 nos. (17,191 Tata + 2,690 Fiat) in the domestic market in July 2009, a 32% increase compared to 15,064 nos. (14,652 Tata + 412 Fiat) in July last year. Sales of Tata cars, at 14,537 nos., grew by 21% over July 2008. Dispatches of the Tata Nano began during the month, and the sales were 2,475 nos. The Indica range sales were 8,563 nos., a growth of 14% over July lastyear. The Indigo range recorded sales of 3,499 nos., lower by 22% over July last year. The UV/SUV range of 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 the brands’ flagship store in Mumbai. The response has been quite encouraging in the first month with the initial India stock and pipeline imports booked to a large extent. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal were 70,572 nos. (63,028 Tata + 7,544 Fiat), against 67,559 nos. (65,746 Tata + 1,813 Fiat) last year, a growth of 4%. Nano sales were 2,475 nos. Cumulative sales of the Indica range
  • 33. at 37,412 nos., reported a growth of 13%. Cumulative sales of the Indigo family were 12,422 nos., lower by 29%. Cumulative sales of the Sumo/Safari range were 10,690 nos., lower by 29%. Exports The Company’s sales from exports at 2,455 vehicles in July 2009 were lower by 34% compared to 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. Sardha Tata Motors today reported revenues (net of excise) of Rs.6404.63 crores on a standalone basis for the quarter ended June 30, 2009, of the financial year 2009-10, a decline of 7.6% compared to Rs.6928.44 crores in the corresponding quarter previous year. The company’s continued focus on cost efficiencies, coupled with reduction of raw material prices, inventory reduction and improvement in sales realisation, yielded considerable benefits resulting in the operating margin to 11.4% (from 7.1% in the previous year), with operating profits at Rs.728.00 crores, an increase of 47.9% as compared to the corresponding period of the previous year. Profit before Tax for the quarter grew by 58.8% to Rs.548.04 crores (Q1 2008-09: Rs.345.09 crores) and Profit after Tax was Rs.513.76 crores (Q1 2008-09: Rs.326.11 crores), an increase of 57.5%. The interest cost (net) at Rs.253.45 crores for the quarter increased by 125.6% due to increased debt taken by the company during the previous year to support its product programmes, investments and working capital requirements and depreciation at Rs.229.12 crores was higher by 26.7% reflecting the increased investments in new products and supporting capabilities. For the quarter ended June 30, 2009, there was an exceptional notional foreign exchange 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 products and variants improved the company’s sales, except in the case of the heavy truck segment. The heavy truck segment is recovering, albeit slowly, in response to infrastructure development, Government stimulus packages for the automobile industry and Jawaharlal Nehru National Urban 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 vehicles continued to be severely impacted (negative 43%) in the wake of continuing tumultuous global environment resulting in total sales volume at 127,340 vehicles, a decline of 4.3% as compared to the corresponding quarter of the previous year. The company gained market share in commercial vehicles to 67.4% during the quarter compared with 61% in the corresponding
  • 34. quarter 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 been growing sequentially every month of the quarter breaking into positive growth in June. The market share for Tata passenger vehicles has sequentially improved from April to June 2009 with the June exit market share at 12.5%, and for the period being at 11.3%. Along with Fiat, the company has a joint market share of 12.3% in the industry. The company continues to upgrade its resources to leverage emerging opportunities. In commercial 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 which are being gradually launched in India and also in select international markets over a period of time. An all-new Starbus range of buses has also been introduced. A new mileage enhancing automatic 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 State Governments 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. The company also opened the first Jaguar Land Rover showroom in India at Mumbai. Along with the Fiat Linea, Fiat 500 and the Palio, the company has commenced the distribution of the Fiat Grande Punto in June 2009. The audited stand-alone financial results for the quarter ended June 30, 2009, are enclosed. The consolidated financial results for the 1st quarter of Financial Year would be voluntarily disclosed separately in due course. Released on: 17th July, 2009 TATA MOTORS DELIVERS FIRST TATA NANO IN THE COUNTRY IN MUMBAI - Rojar R. Karm Tata Motors is pleased to announce that Mr. Ashok Raghunath Vichare of Mumbai has become the 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, at the company’s dealership, Concorde Motors, today. Speaking on the occasion, Mr. Tata said, “I hope the Tata Nano will bring motoring pleasure to those who will be buying their first car as also 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 their cars today. As planned, Tata Motors has commenced deliveries of the Tata Nano this month to different towns 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.
  • 35. Released on: 1st July, 2009 TATA Motors’s June 2009 DOMESTIC SALES at 43,244 nos. - G. Lata Sure Tata Motors’ total sales (including exports) of Tata commercial and passenger vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The company’s domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year. Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined by 7%, compared to 131,733 nos. sold last year. Commercial Vehicles The Company’s sales of commercial vehicles in June 2009 in the domestic market were 26,205 nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256 nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of 15% over May 2009. Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth of 27% over last year. Passenger Vehicles The 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 to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month at sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550 nos. of May 2009. 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 the quarter were 50,691 nos. (45,837 Tata + 4,854 Fiat), against 52,495 nos. (51,094 Tata + 1,401 Fiat) in the same period last year. Cumulative sales of the Indica range at 28,849 nos., reported a growth of 12%. Cumulative sales of the Indigo family were 8,923 nos., a 32% decline over the same period last year. Cumulative sales of the Sumo/Safari range were 8,065 nos., a decline of 35%.
  • 36. Exports The Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to 3,431 vehicles in June 2008. The cumulative sales from exports for the fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year. Released on: 28th June, 2009 FIRST JAGUAR LAND ROVER SHOWROOM OPENS IN INDIA Jaguar Land Rover's official entry to the fast-growing Indian car market was marked today by the 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 Rover's award-winning vehicles are well known around the world. Jaguar has become one of the world's leading producers of beautiful fast cars. Land Rover produces the world’s most versatile all-terrain vehicles, combining refined luxury with a true breadth of capability. The exciting new range of premium luxury vehicles available for the Indian market will include the Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover. 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-class Ceejay House facility in Worli, Mumbai, will offer a wide range of both Jaguar and Land Rover vehicles, with a dedicated showroom section for each brand. It aims to establish a benchmark experience in luxury car sales in India, with plans to develop the dealer network throughout 2009 and 2010. Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, said: "We are extremely pleased and proud to introduce the Jaguar Land Rover brands in the Indian market and give the discerning Indian customer direct access to these prestigious brands, accompanied by a parts and service network. We hope that they will delight customers in India just as they have done in markets the world over." Mr. David Smith, CEO of Jaguar Land Rover, said: "Jaguar Land Rover is delighted to have officially opened our first showroom in India. It is an exciting time to be entering the Indian market, a country with increasing affluence and an economy which is still growing. We believe 100 that the Indian market holds significant growth potential in the long term, and we hope to tap the demand for premium vehicles from discerning customers."
  • 37. Released on: July 7, 2009 TATA MOTORS TO INTRODUCE AIR CAR – Ben MaGreow Tata Motors is taking giant strides and making history for itself. First the Landrover-Jaguar deal, then the world's 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 $150 per barrel, it is about time we heard some breakthrough! India's largest automaker Tata Motors is set to start producing the world's first commercial air- powered vehicle. The Air Car, developed by ex-Formula One engineer Guy Nègre for Luxembourg-based MDI, uses compressed air, as opposed to the gasand- oxygen explosions of internalcombustion models, to push its engine's pistons. Some 6000 zero-emissions Air Cars are scheduled to hit Indian streets by August of 2009. The Air Car, called the MiniCAT could cost around Rs. 3,50,000 ($ 8177) in India and would have 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 world's cheapest 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 welded and a body of fiberglass powered by compressed air. Microcontrollers are used in every device in the car, so one tiny radio transmitter sends instructions to the lights, indicators etc. There are no keys - 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 petrol car). Its mileage is about double that of the most advanced electric car (200 to 300 km or 10 hours of driving), a factor which makes a perfect choice in cities where the 80% of motorists drive at less than 60Km. The car has a top speed of 105 kmph. Refilling the car will, once the market develops, take place at adapted petrol stations to administer compressed air. In two or three minutes, and at a cost of approximately 100 rupees, the car will be ready to go another 200- 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 every 50,000Km.] The temperature of the clean air expelled by the exhaust pipe is between 0-15 degrees below zero, which makes it suitable for use by the internal air conditioning system with no need for gases or loss of power.
  • 38. Released on: 26th June, 2009 Consolidated Revenue in 2008-09 Rs. 70938.85 crores, Loss after Tax Rs. 2505.25 crores Tata Motors today reported consolidated gross revenue of Rs.74151.21 crores in 2008-09. The consolidated financial performance of the company is not comparable to 2007-08 on account of the acquisition of Jaguar Land Rover in June 2008. In 2007-08, the consolidated gross revenue was 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 2008-09 of Rs. 2505.25 crores; in 2007-08, the company had reported a Profit after Tax of Rs. 2167.70 crores. Tata Motors has reported a Basic Earnings Per Share (EPS) loss of Rs.(56.88) (2007- 08: Profit of Rs. 56.24) for its consolidated operations. Tata Motors has already reported on May 29, 2009, that its own stand-alone revenues (net of excise) for 2008-09 amounted to Rs.25660.79 crores, and Profit after Tax for the year was Rs.1001.26 crores. Business Highlights: Jaguar Land Rover: Jaguar Land Rover made a profit in 2007 and continued to do so in the first half of 2008. However, the global meltdown, especially after July 2008 with vehicle financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land Rover. In 2008 therefore, Land Rover sales fell considerably. However, Jaguar was able to maintain the sales level primarily on the back of a very strong consumer response to the newly launched XF sedan. The company has actively responded to this changed situation by taking a number of urgent and long term measures. These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows. In addition, Q2QQ2QWthe company has introduced successfully new variants on both Jaguar and Land Rover 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 domestic performance, it strongly grew exports. The company is focusing on aggressive growth in both home and international markets harnessing stimulus packages announced by different governments, as also product development initiatives. Telcon: The company has launched several new products, but was impacted by the credit squeeze in the third quarter of the year. It expects demand revival supported by infrastructure spend in the country.
  • 39. 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 plans include strengthening in-house design and validation capabilities and expanding customer base in India and broad. TMFL: In line with Tata Motors’ sales in 2008-09, there was a decline in disbursals. It is focused on incremental captive vehicle financing of Tata Motors through increased securitisation and borrowings on its own books with higher ability to leverage. Tata Technologies: The company has consolidated position among the top three solutions and software provider of leading Engineering and PLM products in all major geographies winning several projects, and has expanded presence in aerospace design and aero structures. While the year ahead is challenging, it has developed appropriate business structures and processes to strengthen relationship with strategic clients. Released on: 29th May, 2009 Tata Motors Net Revenue in 2008-09 lower at Rs.25660.79 crores, and Net Profit lower at Rs.1001.26 crores, due to market upheaval Tata 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 automobile industry. Revenues (net of excise) for the year were Rs. 25660.79 crores compared to Rs.28739.41 crores in 2007-08, a decline of 10.7%. The Profit before Tax was Rs.1013.76 crores compared to Rs.2576.47 crores in 2007-08, a decline of 60.7%. The Profit after Tax for the year was Rs.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 finance throughout the year; particularly in the October-December quarter post the global financial market upheavals. The impact on heavy commercial vehicles was more severe, abetted by reduction in freight movement in different segments and customer concerns on economic conditions. Small commercial vehicles, like the Tata Ace and the Tata Magic, have continued to improve penetration. Stimulus packages from the Government in the last quarter of the year have to an extent helped regenerate overall sales, as in the automobile industry, but growth is yet to revive to earlier levels. The fall in volumes combined with peak input prices and high interest rates brought margins under pressure. The company accelerated cost reduction measures and proactively managed
  • 40. working 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. The company retained its domestic leadership position in commercial vehicles, and continued to be amongst the top three in passenger vehicles. Domestic commercial vehicles sales amounted to 265,373 units (2007-08: 312,935 units). The company increased market share in commercial vehicles to 63.8% (2007-08: 62.2%), aided by its wide product offering. Domestic passenger vehicles sales amounted to 207,512 units (2007-08: 218,055 units).The launch of the second generation Tata Indica Vista and the continuing good run of the Tata Indigo CS has helped recover 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, introduced during the year or the previous year, offering benefits like higher fuel efficiency, grew at a faster rate and helped enhance market share. The landmark events of the year were the acquisition of Jaguar Land Rover on June 2, 2008, and the launch of the Tata Nano on March 23, 2009. Over 2.03 lakh fully paid bookings were received for the Tata Nano, the deliveries of which will begin from July 2009. The Pantnagar plant began producing the Tata Nano during the year, while the Sanand plant is rapidly progressing towards completion. DIVIDEND The Board of Directors has recommended a dividend of Rs.6/- per Ordinary share and Rs.6.50 per ‘A’ Ordinary share of Rs.10/- each for the financial year 2008-09 (2007- 08: Rs.15/- for Ordinary share). The dividend is subject to approval of shareholders; tax on the dividend will be borne by the Company. The Audited Financial Results for the financial year ended March 31, 2009, are enclosed.
  • 41. RESEARCH METHODOLOGY The purpose of methodology is to describe the process involved in research work. This includes the 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 sources RESEARCH DESIGN: Research Design is the arrangement for conditioned for data collection & analysis of data in a manner 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 blue print that is followed in completing study. The research conducted by me is a descriptive research. This is descriptive in nature because study 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 the technique or the procedure that researcher would adopt in selecting items to be inched in the sample i.e. the size of sample. Sampling plan is determined before data are collected.
  • 42. STEPS IN SAMPLING PLAN: SAMPLING FRAME: The list of sampling units from which sample is taken is called sampling frame. Rourkela City map was studied thoroughly and samples were selected from the place in a scattered manner to get 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 SECTOR SAMPLING PROCEDURE: The selection of respondents were accordingly to be in a right place at a right time and so the sampling were quite easy to measure, evaluate and co-operative. It was a randomly area sampling 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 50 people in all. I had done my field work in the following area. CIVIL TOWNSHIP, CHHEND, BASANTY COLONY, KOELNAGAR, SECTOR I started my project very first educating the respondents about my entire project, and ask them to co–operate with me. Mostly all the respondent were aware of this type of surveys. So I didn’t face any type of difficulty during my project in the process of explaining and taking their responses on the questionnaire.
  • 43. RESULTS AND ANALYSIS Tata Motor`s exclusive showrooms The 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 were provided to the respondents for rating are – store ambience, sales personnel, after sales service and display of watches. Consumer perception of store ambience 36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “Above Average” and “Excellent”. This proves that store ambience plays an important role in consumer perception of service quality. Consumer perception of sales personnel
  • 44. 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 service In 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 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 gave rating of “Average”.
  • 45. Overall perception about Tata showrooms The respondents were also asked to give overall rating to Tata`s exclusive showrooms. It was found that out of total 50 respondents, 30 rated as “good” while the remaining considered the showrooms 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 of cars in the showrooms play a major role in determining the customer perception about brand. Car customers No. of people First time user 23 More than once 27 21 22 23 24 25 26 27 Firsttimeuser Morethanonce 23% 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
  • 46. 0 5 10 15 20 25 30 Satisfied Notsatisfied 21% 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 0 5 10 15 20 25 30 35 Yes No 17% 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 0 5 10 15 Yes No 15% people were favorable towards Tata passenger cars creating brand value whereas 5% were against it.
  • 47. Factors affecting buying of customers Features No. of people Power steering 10 Mileage 12 Price 20 Others 8 0 5 10 15 20 Powersteering Mileage Price Others 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 0 5 10 15 20 25 30 1year 1-3years 3-5years 5-10years Above10years 30% people replied that they were associated with Tata motors for more than 5 years whereas 20% replied that they own Tata car for more than 10 years. Knowledgeable salesperson No. of people Strongly Disagree 0 Disagree 0 Neither disagree nor agree 0 Agree 36
  • 48. Strongly agree 14 0 5 10 15 20 25 30 35 40 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 36% people agreed that the sales persons are knowledgeable and 14% strongly disagreed that the sales persons are knowledgeable. Employee spent enough time with you before sales No. of people Strongly Disagree 0 Disagree 0 Neither disagree nor agree 0 Agree 34 Strongly agree 16 0 5 10 15 20 25 30 35 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 34% 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 agree 0 Agree 32 Strongly agree 14
  • 49. 0 5 10 15 20 25 30 35 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 62% agreed that sales persons spent enough time with them during the sales, while 34% strongly agreed that the sales persons spent enough time with them during sales and only 4% disagreed with this. Availability of the product No. of people Strongly Disagree 0 Disagree 4 Neither disagree nor agree 0 Agree 31 Strongly agree 5 0 5 10 15 20 25 30 35 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 31% agreed that the availability of the product was there, 5% strongly agreed that the availability was there while only 4% said they disagreed with this. Prices are affordable No. of people Strongly Disagree 0 Disagree 2 Neither disagree nor agree 5 Agree 21 Strongly agree 22
  • 50. 0 5 10 15 20 25 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 22% strongly agreed that the prices are affordable, 21% agreed that the prices are affordable whereas 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 agree 0 Agree 27 Strongly agree 17 0 5 10 15 20 25 30 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 27% 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 agree 0 Agree 24 Strongly agree 6
  • 51. 0 5 10 15 20 25 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 24%agreed that the test drive was offered to them, 6% strongly agreed that the test drive was offered while 20% disagreed with this. Responds to complain quickly No. of people Strongly Disagree 0 Disagree 9 Neither disagree nor agree 11 Agree 20 Strongly agree 10 0 5 10 15 20 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 20% agreed that the response to complaints is quick, 10% strongly agreed, 11% neither agreed nor disagreed and 9% disagreed with this. Careful with personal information No. of people Strongly Disagree 0 Disagree 0 Neither disagree nor agree 8 Agree 35 Strongly agree 7
  • 52. 0 5 10 15 20 25 30 35 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 35% agreed that yes they were careful with personal information, 7% strongly agreed with this and 8% neither agreed nor disagreed. Commitments are fulfilled No. of people Strongly Disagree 0 Disagree 7 Neither disagree nor agree 0 Agree 6 Strongly agree 37 0 5 10 15 20 25 30 35 40 Strongly Disagree Disagree Neitherdisagree noragree Agree Stronglyagree 37% 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
  • 53. 0 5 10 15 20 25 30 35 40 Indica Indigo Safari Sumo Xenon Nano 13% 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 0 5 10 15 20 25 30 35 40 Design Price Brandimage Goodquality 39% 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
  • 54. 0 10 20 30 40 50 TV Magazines Newspapers Radio 46% responded TV while 25% magazines, 36%newspapers and 4% radio. Awareness of brand ambassador No. of people Yes 6 No 44 0 10 20 30 40 50 Yes No 6% 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
  • 55. 0 20 40 60 80 100 Verybad Bad Neitherbadnor good Good Verygood 96% said that there overall opinion about TATA was that it is very good while 4% said that it is good. Overall opinion about TATA No. of people Very unlikely 0 Unlikely 0 Neither unlikely nor likely 0 Likely 10 Very likely 90 0 20 40 60 80 100 Veryunlikely Unlikely Neitherunlikely norlikely Likely Verylikely 90% people said they would very likely recommend TATA to other people and 10% said they would likely recommend TATA to others.
  • 56. 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.
  • 57. • 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. CONCLUSION The study was conducted to measure,” Repositioning Strategy of Tata Motors and its acceptance level in customer - A study in Rourkela Market “. The study was conducted on 50 Customers. A questionnaire was designed to understand the Repositioning Strategy of Tata Motors and its acceptance level in customer in Rourkela market. Based on the questionnaire, data was 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 market situation. An earnest attempt has been made to make the study realistic and suggestive, but it is not claimed that the findings and suggestions in the report are perfect. The suggestions to improve consumer awareness about brand repositioning strategy of Tata Motors 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
  • 58. • Performance Characteristics • Quality The two ways firms compete are by either a differentiation strategy or a low cost strategy. However, as we've seen the route TML has taken involves competing on both strategies. While the Nano targets the price conscious common man, the Jaguar Land Rover deal shows us that TML is now targeting brand conscious, high-end consumers. TML needs to have a similar differentiated 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 deliver and best in our value systems and ethics”. TML has come to be known as an innovator in the passenger 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 and bear testimony to the strength of the company’s R&D efforts. This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally. APPENDICES QUESTIONNAIRE 1) 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? Yes No� � 4) What is your experience from the previous vehicle? Satisfied Not satisfied� � 5) Which is the most essential thing you prefer while buying vehicle? Price Mileage Power steering Others� � � �
  • 59. 6) Does TV ad appeal you? Yes No� � 7) Do you like TV programs on car? Yes No� � 8) Does brand value affect your decision on buying vehicle? Yes No� � 9) How long have you been associated with Tata Motors? 10) How would you rate TATA Motors on the following parameter? Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree a) Knowledgeable salesperson b) Employees spent enough time with you: before sales During sales After sales c) Availability of the product d) Prices are affordable e) Attractive discounts offered f) Offered a test drive g) Responds to complaints quickly h) Careful with personal information i) All the
  • 60. commitments are fulfilled 11) What is your overall opinion about Tata Motors? Very Bad Bad Neither Bad nor Good Good Very Good 1 2 3 4 5 12) How likely would you recommend Tata Motors? Very Unlikely Very Likely 1 2 3 4 5 REFERENCES BOOKS • ICFAI Journal of Marketing Management • ICFAI Journal of Brand Management • ICFAI, Strategic Marketing Management • ICFAI, Business Strategy INTERNET • www.tata.com • www.tatamotors.com • http://en.wikipedia.org/wiki/Tata_motors • http://en.wikipedia.org/wiki/Tata_group • http://en.wikipedia.org/wiki/Indian_automobile_industry
  • 61. • http://www.carwale.com/research/cars/tata • http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull • http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull • www.scribd.com • www.thehindubusinessline.com