INTRODUCTION TO THE TOPIC        The rapid pace of change and intense competitive pressure in todays marketplacedemand tha...
4. Premium image, premium price- Branding can lift what you sell out of the realm of acommodity, with customerswilling to ...
Company Profile       Tata Motors Limited is Indias largest automobile company, with consolidatedrevenues of Rs.70, 938.85...
The foundation of the companys growth over the last 50 years is a deepunderstanding of economic stimuli and customer needs...
employability is focused on youth and women. They range from schools to technicaleducation institutes to actual facilitati...
During the year 1995 a new double pick-up and Army Version of various TelcoVehicles were developed. A new petro engine and...
launched the Indica 2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI)version of Indica. The Company ha...
passenger cars, utility vehicles, pick-ups, trucks and buses for the South African market. TataMotors has launched a face ...
Tata 809 Ex and Ex2                         Tata 909 Ex and Ex2                         Tata 1109 (Intermediate truck)    ...
Global Operations & Subsidiaries         Tata Motors is pursuing growth internationally through exports and acquisitions. ...
Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of TataMotors in the business of heavy commercial vehi...
The company was established in 1948 as Ashok Motors, with an aim to assembleAustin cars. Manufacturing of commercial vehic...
over fluctuating market situations. The acquisition of Daewoos commercial vehicles businessin March 2004 was a step in tha...
“Reach for the stars”Before the launch of Ace, Tata Motors had to pay attention to one important aspect that theyare not g...
operations to several other countries including South Korea, Thailand, South Africa andArgentina and is planning to set up...
systems. The joint venture will absorb technology and expertise in chassis and aggregatesfrom Tata Motors, and Marcopolo w...
 Ashok leyland plans to foray into the utility vehicles segment with both military         and civil models. Ashok Leylan...
•   1901 First Indian to own a car in India - Jamshedji Tata   •   1905 First Woman to drive a car in India - Mrs. Suzanne...
equity participation by British Leyland             and Ashok Leyland commenced             manufacture of commercial vehi...
Maruti 1000, made by Maruti Udyog              was the first ever contemporary sedan-              type car launched in In...
Some of the multinational companies in India are:-Company                  Description                                   P...
Ford entered India in collaboration with                                                   Escort (discontinued), Ikon, Mo...
Renault-                                            Logan (in partnership with Mahindra and           -Nissan             ...
LITERATURE SURVEYProduct:Anything offered to a market for attention, acquisition, use, or consumption that might satisfya ...
Emission                                                   BS III      Engine                   Capacity                  ...
Departure angle                   17o       Weights                          Gross Vehicle weight              2850 kgs   ...
   Placing orders with manufacturers      Acquire funds to finance inventories and credit in the market      Assume res...
• An audio visual presentation was prepared to be used for showing the      customers.        • Demo was given to each seg...
 To know what people perceive and thinking about Tata Motors and its products.    To find out the satisfaction level of ...
• All the competitors are recognized. This would facilitate the organization in making a     proper SWOT analysis.        ...
i.   Questionnaire:- a printed questionnaire was given to each customer with a request           to answer it and return i...
LEVERWISE OWNERSHIP ANALYSIS OF THE TARGETED CUSTOMERGROUP                                              Owners(in %)      ...
ANALYSIS ON             TYPE      OF     CARGO        BOX      USED        BY   TARGETEDCUSTOMER                          ...
MAIN CONCERNS OF CUSTOMERS FOR DELIVERY VAN FEATURES                                      ACCEPTANCE (in %) PRICE         ...
Customer perception about delivery van                               STONGL                                   MILDL       ...
FEATURE ACCEPTABILITY of winger cargo            LOADING                 FUEL                     LOADING              ECO...
Seminar Report Titled³Ma r k etingstr at egi es of Swift ´ is a genuine work done by me & allthe information collected is ...
Limitations3313.Conclusions & Recommendations3314.Bibliography3415.Weblography34VOLUME VS PRICE ANALYSIS OF COMPETITORS OF...
INTERPRETATION      When price and volume is compared then it is found that WINGER CARGO iseconomic in comparison to its c...
INTERPRETATION       The customers interpreted that the Force m40 is the ebst in the market when uel andcargo space is com...
INTERPRETATION        TATA Ace is being widely used in the market. This shows that there is a competitonwithin the brand. ...
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
53013633 introduction-to-the-topic (2)
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  1. 1. INTRODUCTION TO THE TOPIC The rapid pace of change and intense competitive pressure in todays marketplacedemand that brands continuously innovate themselves to maintain their relevance and marketposition. TATA MOTORS has launched a new vehicle i-e “WINGER CARGO”. Thisvehicle belongs to the small commercial vehicle category. The special feature of the vehicle isthe loading area and the closed container body. Tata winger cargo vehicle’s idea has beengenerated from Mercedes-benz sprinter with huge cargo space and easy navigation withincity limits with no legal restrictions giving driver more choice, flexibility and efficiency to thetrucking companies and to the customers . When there is a new launch it is quiet essential to make people aware of the newlaunched vehicle, find out their reactions and views. In order to survive in the cut throatcompetition the competitors and their strategies must be identified . The competitive advantages of TATA MOTORS are:-  Geographical network of offices  Ability to cross sell various TATA businesses  Skill and leadership of its employees  Depth of expertise  Brand  Independence  Performance ethics  Culture of integrity. Segmentation, targeting and positioning are the three important factors for the successof a new launched product. Branding is also an important factor that adds to the success ofthe product. This project deals with the branding and positioning aspects of the product WINGERCARGO. BRANDING A brand is the identity of a specific product, service, or business. Branding is the process of creating distinctive and durable perceptions in the minds of consumers. The benefits of branding are:-1. Memorability- It is easier to remember the branded company than the what is its name.2. Loyalty- When people have a positive experience with a memorable brand, theyre morelikely to buy that product or service again than competing brands.3. Familiarity- Psychologists have shown that familiarity induces liking, and this makes evennon-customers more likely to recommend a brand they know. 1
  2. 2. 4. Premium image, premium price- Branding can lift what you sell out of the realm of acommodity, with customerswilling to pay more for the well-branded product or service.5. Extensions- With a well-established brand, you can spread the respect youve earned to arelated new product, service or location more easily6. Greater company equity- Making your company into a brand usually means that you canget more money for the company when you decide to sell it.7. Lower marketing expenses- Although you must invest money to create a brand, once itscreated you get a bigger bang for every marketing buck using it.8. For consumers, less risk- People tend to choose the brand-name supplier over the no-nameone when afraid of the consequences of a mess-up.POSITIONING • It means the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. • It is the aggregate perception the market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. • It will happen whether or not a companys management is proactive, reactive or passive about the on-going process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions. • It is the third and the final step of STP(Segmentation, Targeting and Positioning). • After segmenting a market and then targeting a consumer, you would proceed to position a product within that market. • Products or services are mapped together on a positioning map. This allows them to be compared and contrasted in relation to each other. • This is the main strength of this tool. Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition (hence the term positioning strategy). • 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 • The goal of positioning 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 2
  3. 3. Company Profile Tata Motors Limited is Indias largest automobile company, with consolidatedrevenues of Rs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercialvehicles in each segment, and among the top three in passenger vehicles with winningproducts in the compact, midsize car and utility vehicle segments. The company is theworlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 24,000 employees are guided by the vision to be "BEST IN THEMANNER IN WHICH WE OPERATE BEST IN THE PRODUCTS WE DELIVER ANDBEST IN OUR VALUE SYSTEM AND ETHICS." Established in 1945, Tata Motors presence indeed cuts across the length and breadthof India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954.The companys 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 jointventure with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat andTata cars and Fiat power trains. The companys dealership, sales, services and spare partsnetwork comprises over 3500 touch points; Tata Motors also distributes and markets Fiatbranded cars in India. Tata Motors, the first company from Indias engineering sector to be listed in the NewYork Stock Exchange (September 2004), has also emerged as an international automobilecompany. Through subsidiaries and associate companies, Tata Motors has operations in theUK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a businesscomprising the two iconic British brands that was acquired in 2008. In 2004, it acquired theDaewoo Commercial Vehicles Company, South Koreas second largest truck maker. Therechristened Tata Daewoo Commercial Vehicles Company has launched several newproducts in the Korean market, while also exporting these products to several internationalmarkets. Today two-thirds of heavy commercial vehicle exports out of South Korea arefrom Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, areputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.Hispanos presence is being expanded in other markets. In 2006, Tata Motors formed a jointventure with the Brazil-based Marcopolo, a global leader in body-building for buses andcoaches to manufacture fully-built buses and coaches for India and select internationalmarkets. In 2006, Tata Motors entered into joint venture with Thonburi AutomotiveAssembly Plant Company of Thailand to manufacture and market the companys pickupvehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of theXenon pickup truck, with the Xenon having been launched in Thailand in 2008. Tata Motors is also expanding its international footprint, established through exportssince 1961. The companys commercial and passenger vehicles are already being marketedin several countries in Europe, Africa, the Middle East, South East Asia, South Asia andSouth America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh,Ukraine, Russia, Senegal and South Africa. 3
  4. 4. The foundation of the companys growth over the last 50 years is a deepunderstanding of economic stimuli and customer needs, and the ability to translate them intocustomer-desired offerings through leading edge R&D. With over 3,000 engineers andscientists, the companys Engineering Research Centre, established in 1966, has enabledpioneering 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 wasTata Motors, which developed the first indigenously developed Light Commercial Vehicle,Indias first Sports Utility Vehicle and, in 1998, the Tata Indica, Indias first fully indigenouspassenger car. Within two years of launch, Tata Indica became Indias largest selling car inits segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indiasfirst indigenously developed mini-truck. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which Indiaand the world have been looking forward to. The Tata Nano has been subsequentlylaunched, as planned, in India in March 2009. A development, which signifies a first for theglobal automobile industry, the Nano brings the comfort and safety of a car within the reachof thousands of families. The standard version has been priced at Rs.100, 000 (excludingVAT and transportation cost). Designed with a family in mind, it has a roomy passenger compartment withgenerous leg space and head room. It can comfortably seat four persons. Its mono-volumedesign will set a new benchmark among small cars. Its safety performance exceedsregulatory requirements in India. Its tailpipe emission performance too exceeds regulatoryrequirements. In terms of overall pollutants, it has a lower pollution level than two-wheelersbeing manufactured in India today. The lean design strategy has helped minimize weight,which helps maximize performance per unit of energy consumed and delivers high fuelefficiency. The high fuel efficiency also ensures that the car has low carbon dioxideemissions, thereby providing the twin benefits of an affordable transportation solution witha low carbon footprint. In May 2009, Tata Motors introduced ushered in a new era in the Indian automobileindustry, in keeping with its pioneering tradition, by unveiling its new range of worldstandard trucks called Prima. In their power, speed, carrying capacity, operating economyand trims, they will introduce new benchmarks in India and match the best in the world inperformance at a lower life-cycle cost. Tata Motors is equally focused on environment-friendly technologies in emissionsand alternative fuels. . It has developed electric and hybrid vehicles both for personal andpublic transportation. It has also been implementing several environment-friendlytechnologies in manufacturing processes, significantly enhancing resource conservation Through its subsidiaries, the company is engaged in engineering and automotivesolutions, construction equipment manufacturing, automotive vehicle componentsmanufacturing and supply chain activities, machine tools and factory automation solutions,high-precision tooling and plastic and electronic components for automotive and computerapplications, and automotive retailing and service operations. Tata Motors is committed to improving the quality of life of communities by workingon four thrust areas – employability, education, health and environment. The activities touchthe lives of more than a million citizens. The companys support on education and 4
  5. 5. employability is focused on youth and women. They range from schools to technicaleducation institutes to actual facilitation of income generation. In health, our intervention isin both preventive and curative health care. The goal of environment protection is achievedthrough tree plantation, conserving water and creating new water bodies and, last but not theleast, by introducing appropriate technologies in our vehicles and operations for constantlyenhancing environment care. With the foundation of its rich heritage, Tata Motors today is etching a refulgentfuture. HISTORY OF TATA MOTORS The Company was incorporated on 1st September 1945 at Mumbai to manufacturediesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgingsand 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 withDaimler-Benz AG, West Germany. The company also used to manufacture pulp and papermaking machinery. In 1960 the companys name, which was Tata Locomotive & EngineeringCompany Ltd. was changed to Tata Engineering & Locomotive Company Ltd. In the year1987 the company undertook to set up a new forge shop, a high output foundry line, a newpaint shop as well as augmentation of engine and gearbox manufacturing facilities, all atJamshedpur In 1991 during the year the company entered into a collaborative agreement with aninternationally renowned engine research and development organization to jointly develophigher horsepower, fuel efficient diesel and petrol engines to meet the future requirements ofthe company. The last quarter saw the company launching two new passenger vehicles, theSIERRA and the ESTATE totally designed and manufactured in India. The companyacquired a BIFR company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telcoworked out to Rs.18 crores as against setting up of similar critical castings foundry. Duringthe year company launched new earth moving equipment TWK-3036 Tata Front End WheelLoader. Two new models in the EX series of hydraulic excavators were launched. A 10 tonnepick and carry articulated crane, designed and developed in-house was also introduced.During the year company entered into an agreement with Nachi-Fujikoshi Corporation, Japanto manufacture arc and spot welding robots suitable for automobile manufacturingapplications. During the year, company undertook to set up a joint venture with Asian GlassCo. Ltd., Japan to manufacture float glass to be used as wind shields for automobiles. ACCalong with Tata Exports Ltd. participated in the joint venture. The joint venture named asFloathlass 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 NitaCompany Ltd., are the joint Ventures of theCompany 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, forthe manufacture of their `ACCORD model of cars in India. On 22nd April, an agreement wasentered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a jointventure company Mercedez-Benz India to manufacture `E class paneyer cans and engines inIndia. 5
  6. 6. During the year 1995 a new double pick-up and Army Version of various TelcoVehicles were developed. A new petro engine and turbo diesel engine, an up-graded 709LCV, new sports utility vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2truck and a bus with cummins engine were launched. Tata Engineering and Locomotive Company (TELCO), has acquired a second handpaint 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 ofimport duty would be Rs 100 crore. During the year a machine tool division was expanded soas to double its machine building capacity and significantly reduce production times. The Company has launched "TATA SAFARI" in its Multi utility vehicle segment.Tata Holsets turbo charger plant inaugurated on November 25, 1996. In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) haveemerged as numerous uno in the Review 200 survey conducted by the Far Eastern EconomicReview in association with Citi Bank. The Company introduced a 9-tonne vehicle which waswell received in the market. A 40 tonne tractor trailer powered by a Tata CumminsEngineering was introduced. The Company developed a low floor bus chassis to meet thespecific needs of urban transport. The Company signed a new agreement with Hitachi formanufacture of upgraded versions of existing range of excavators. The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced atie-up with Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its smallcar "Indica" to be launched in December. Tata Engineering Locomotive Company Ltd(Telco) sold its construction equipment business into a new subsidiary company, TelcoConstruction 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 ofcummins engine powered vehicle which include a 35 tonne and a 40 tonne articulated truckand two variants of buses. To make substantial improvement in the quality of bus bodies available with TATAvehicles, the Company encouraged collaboration between Fuji Heavy Industries of Japan andthe Automobile Corporation of Goa. The new project undertakes production of bodies onTATA chassis, conforming to the most exacting international standards. Concorde MotorsLtd., a Joint Venture between Tata Engineering and Jardine International Motors (Mauritius)Ltd. was appointed as dealer for the Companys passenger cars in several cities across thecountry, in Feb 1998. The year 1999-Telco became the first Indian manufacturer to offer commercialvehicles meeting euro-I emission norms, a year before they are due to be introduced in thecountry. It is proposed to make TCECL a one-stop shop for construction equipment andearthmoving machinery. In Oct 1999, the Company won the National award for R&D Effortsin Development of Indigenous Technology in the Mechanical Engineering Industries Sectorinstituted by Department of Scientific and Industrial Research, Ministry of Science andTechnology for the year 1999. SKF Bearings India Ltd has signed an agreement with Telco tosupply hub bearings for its latest model 2000 saw the Company working towards introducing two new petrol-driven variantsof its small car Indica, powered by a multi-point fuel injection engine. The Company 6
  7. 7. 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 indigenousdevelopment and commercialization of the Tata Indica car. The Company has launched itsnew hi-tech Indica 2000 car with MPFI petro engine in Guwahati. Tata Engineering & Locomotive Co. is renamed as Tata Engineering Ltd. It replacedits three-shift production line with a one-shift daily schedule starting from 26th June. In thesame year FICCI-SEDF- Business world-Compaq award for social responsiveness wasawarded to the company. The Central Pollution Control Board for Environmental Technologyaward has been presented to Tata Engineering in recognition of its contribution towardsefforts to conserve the environment. TATA Engineering on September 10 announced theaddition 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 duringAuto Expo. Announces financial restructuring. Displays its Tata Sedan car at the GenevaMotor Show. Indica adjudged top selling B-segment car in 2002.Launches two newmotorsport cars (The Zero and Double Zero Pace cars). High Court Approves TataEngineerings Financial Restructuring. Tata Engg, BPCL tie up to market co-brandedlubricants.Tata Steels investment in Tata Engineering has been hiked to Rs 117.98 crore overthe last year. Telco names Sedan as Tata Indigo.Unveils EX series of medium and heavycommercial vehicles. Indica sales cross two-lakh mark .Collaborates with Nippon-Arcelor fortechnical knowhow on CR steel. Receives Teris (The Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of strategies for sustainable development andenvironment-business council for sustainable development) corporate social responsibility(CSR) awards for 01-02. Unleashes Safaris petrol version; priced at Rs 9.35 lakh. The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a bindingMemorandum of Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd(DWCV), Korea for the acquisition of this company. It introduces Tata SFC 407 EX TurboLight Commercial Vehicle (LCV). The Company changed from TELCO toTATAMOTORS w.e.f December 24, 2003. In the same year Tata Safari ranks No 1 inMUV/SUV segment. 2004:- The year of glory. Tata Motors launch an upgraded version Indica on January15, 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. TataMotors launches new Indica V2 in Kerala. Tata Motors introduces new Indicab for touroperators. The much hyped Rs one lakh passenger car project of Tata Motors was goingahead as planned. Tata Motors enters agreement with Ukraine bus building firm. Tata Motorsenters into agreement with Etalon. In a move to consolidate its presence in the lightcommercial vehicles segment, Tata Motors has launched a new variant of its 407 series withincreased pay load capacity called SFC 407EX. Tata Motors buys Daewoo truck unit for Rs465 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 countrys largest commercial vehicles manufacturer unveiled the newLPT 909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of 7
  8. 8. passenger cars, utility vehicles, pick-ups, trucks and buses for the South African market. TataMotors has launched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motorsrolls out Tata SFC 407EX BS II turbo light commercial vehicle. Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. TataMotors rolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo witha price tag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes inCVTech 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 CorporateSocial Responsibility (CSR) in the Large Business category by the Institute of Directors in2007. Tata Motors buys Nissan facility in S. Africa. Tata Motors has got a prestigious orderfrom the Delhi Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses. TataMotors Ltd has appointed Mr. P M Telang as Executive Director (Commercial Vehicles).PRODUCT RANGETata Motors product range covers :- 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 8
  9. 9. 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 9
  10. 10. 10
  11. 11. Global Operations & Subsidiaries Tata Motors is pursuing growth internationally through exports and acquisitions. Ithas a joint venture with Marcopolo, the Brazil-based maker of bus and coach bodies. It hasalso entered into a joint venture with Thonburi Automotive Assembly Plant Company ofThailand to manufacture and market the companys pickup vehicles in Thailand. Tata Motorsand Fiat Auto have entered into an agreement for a Tata license to build a commercial vehicleat Fiats facilities in Córdoba, Argentina. The company has made substantial investments in building a network of associate andsubsidiary companies and joint ventures that complement and support its business activities.These include: 11
  12. 12. Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of TataMotors in the business of heavy commercial vehicles. It is South Koreas second largest truckmaker and the largest exporter of heavy trucks. Telco Construction Equipment Company makes construction equipment and offersallied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi ConstructionMachinery Company, Japan. Tata Technologies provides specialized engineering and design services, productlifecycle management and product-centric information technology services. It has twooperating companies, INCAT and Tata Technologies EKS. Tata Cummins manufactures high horsepower engines used in the companys range ofcommercial vehicles. HV Transmissions and HV Axles are 100 per cent subsidiaries that make gearboxesand axles for heavy and medium commercial vehicles. TAL Manufacturing Solutions is a 100 per cent subsidiary that provides factoryautomation solutions and designs and manufactures a wide range of machine tools. Tata Motors European Technical Centre is a UK-based 100 per cent subsidiaryengaged in design engineering and development of products. TML Financial Services is a 100 per cent subsidiary in the business of financingcustomers and channel partners of Tata Motors. Hispano Carrocera is a reputed Spanish bus manufacturing company in which thecompany has acquired a 21 per cent stake. Tata Auto Comp Systems (TACO) is a holding company for promoting domestic andforeign joint ventures in auto components and systems. It is also engaged in engineeringservices, supply chain management and after-market operations for the auto industry. Concorde Motors is a 100 per cent subsidiary that retails Tata Motors range ofpassenger vehiclesCOMPETITORSMahindra & Mahindra Ltd. Mahindra & Mahindra (M&M) was first known for assembly of the iconic Jeep inIndia and is part of the US $6.7 billion Mahindra Group, an automotive, farm equipment,financial services, trade and logistics, automotive components, after-market, IT andinfrastructure conglomerate. The company was set up in 1945 as Mahindra & Mahindra. Thecompany later branched out into manufacture of light commercial vehicles (LCVs) andagricultural tractors agricultural tractors, rapidly growing from being a manufacturer of armyvehicles and tractors to an automobile major with a growing global market. At present, M&Mis the leader in the utility vehicle (UV) segment in India with its flagship UV, the Scorpio. It had done a joint venture with ITEC, North American leader in heavy trucks. M&Mhas formed a 51:49 JV called Mahindra International with ITEC, USA (parent NavistarInternational), to manufacture commercial vehicles and to bolster its position in the CVbusiness. ITEC is the leader in medium and heavy trucks and buses in North America, and isthe worlds largest manufacturer of medium-duty diesel engines. Mahindra International aimsto have a presence across the CV market (6-35 tones GVW) with variants of passengertransport, cargo and specialized load applications and is likely to start producingmedium/heavy commercial vehicles from 2009.Ashok Leyland Ltd. 12
  13. 13. The company was established in 1948 as Ashok Motors, with an aim to assembleAustin cars. Manufacturing of commercial vehicles was started in 1955 with equitycontribution from Leyland Motors. Today the Company is the flagship of the Hinduja Group,a British-based and Indian originated transnational conglomerate. Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL) recently acquiredthe truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonneLCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL directaccess to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines,state-of-the-art paint shop and R&D facilities. ALL has also entered into technologyagreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&Defforts and developing complementary components and aggregates.Force Motors Joint Venture with MAN for manufacturing high-tonnage vehicles Force Motors haspaired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, suchas long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 ton range atits Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment ofRs7bn. The JV plans to sell nearly half of its production in the domestic market, while the restis to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the twocompanies have formed another JV to manufacture buses in India from end-2007.Hyundai Motors The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, isSouth Korea’s largest and the world’s fifth largest automaker in terms of units sold per year.Headquartered in Seoul, Hyundai operates the world’s largest integrated automobilemanufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. TheHyundai logo, a slanted, stylized H, is said to be symbolic of two people (the company andcustomer) shaking hands. Hyundai means "modernity" in Korean.Maruti Suzuki India Ltd. Maruti Suzuki India Limited is a publicly listed automaker. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds amajority stake in the company. It was the first company in India to mass-produce and sellmore than a million cars. It is largely credited for having brought in an automobile revolutionto India. It is the market leader in India. On 17 September 2007, Maruti Udyog was renamedto Maruti Suzuki India Limited. The companys headquarters remain in Gurgaon, near Delhi.Maruti Udyog Limited (MUL) was established in February 1981, though the actualproduction commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles.STRATEGIES FOR COMMERCIAL VEHICLE “Ever since 2000 - when Tata Motors made a hefty Rs 500 crore (Rs 5 billion) loss inits worst financial performance - the company has been looking at ways to overcome cyclicalups and downs.” The company chalked out a two-pronged strategy. The first was the classical route oftrying to balance sales in different markets. Through an overseas push, Tata Motors felt thiscould be done. If there was a downturn in one market, an upturn in another could help it tide 13
  14. 14. over fluctuating market situations. The acquisition of Daewoos commercial vehicles businessin March 2004 was a step in that direction. The second part of the strategy was to add to its portfolio, products that would largelybe immune to industry fluctuations. One way out: make vehicles that were smaller. Buyers ofsmall and light commercial vehicles are largely individuals. The 207 DI (small commercialvehicle two-tonner) launched in August 2002, which had a Tata Mobile chassis and thesuccessful Tata 407s engine, was one such instance. The Ace was another part in this product strategy. However, industry analysts say thatdeveloping the one-tonne Ace was a tougher task in many ways than the 207 DI. The challenges were both internal and external. One was to have the entiremanagement team on the same wavelength on various operational and developmental issues. Right costing was another challenge. The vehicle had to be built to a pre-determinedprice band, that too at a certain quality standard. If potential buyers were individuals whowould otherwise opt for a three-wheeler, they had to be given a vehicle that would look andperform better. In this quest, the vehicle cabin incorporated car-like features to stand out in acrowd of rudimentary three wheelers. Partly to keep costs under control, the company also banked on outsourcing. Today, asignificant 82 per cent of the Tata Ace is outsourced. Even some of the design elements werefocused on costs. It also paid attention to safety features. For instance, the rearview mirrorwas mounted on the windscreen glass instead of the roof of the vehicle. The logic: the windscreen of a vehicle has the lowest vibration, so the rearview for thedriver will be perfect. It is trying to add value for customers in other ways too. The companyrecently introduced a range of Ace accessories like a vehicle protection system, musicsystems and even Ganesha idols.Customer gainsThe company also did a market segmentation analysis to understand potential customersbetter. There were primarily two sets of customers: entry-cost sensitive customers and otherswho valued return-on-investment.The company decided to focus on the ROI-sensitive customer who would be willing to pay aslightly higher price, but would require lower operating costs.Tata Motors also had to address a key concern of commercial vehicle buyers - lead (timetaken to travel a distance) and load (weight it could take). Hence, the Ace was built to achievetop speeds of 64 kmph compared to 50-56 kmph in the case of three-wheelers.From the customer’s point of view, it could mean more trips on any given day. In terms ofload bearing capacity, the cargo bed of the Ace was bigger at 2,200X1,500 mm, compared toan average of 1,950X1,450 mm of other three-wheelers.There were other benefits, too. In running costs, the company claims that Ace requires an oilchange only after every 9,000 kilometers of driving, compared to 2,500-5,000 kilometers inthe case of three-wheelers. Savings: Rs 1,000-Rs 1,500. 14
  15. 15. “Reach for the stars”Before the launch of Ace, Tata Motors had to pay attention to one important aspect that theyare not going into the market with the mindset of selling a medium and heavy commercialvehicle. For instance, medium and heavy commercial vehicles typically cover hundreds ofkilometers at a stretch - even the 207 DI travels an average distance of more than 200kilometers a day.Not so for the Ace. The operators of the vehicle travel for a shorter distance as it is primarilyused for last mile transport between the outskirts of a city to the centre (60-100 kilometers).One fallout: it would be too much to expect owners to drive a longer distance to get to anafter-sales outlet.So, while focusing on maximum reach it tried to benchmark itself broadly with motorcycles.Typically, motorcycle manufacturers have a sales or service outlet every 10-20 kilometers.That scale of reach was not required for selling the Ace.Nevertheless, Tata Motors had to augment distribution. To increase the number of serviceoutlets, the company trained automobile garages and branded them Tata-certified servicepoints.At present, the company claims to have a sale or authorized service station at every 50-70kilometers in the states where the Ace is sold.Now, Tata Motors was ready for the acid test in choosing its entry and market strategy. Onechoice was to follow a tried and successful route taken by the 207 DI during launch. The 207DI made its foray in a smaller market such as the north-east.At that time, this region was out of market leader, Mahindra & Mahindra’s radar and throughthis deliberates strategy, Tata Motors managed to create a market for pick-ups in that region.But this time, Tata Motors took the battle straight to the enemy camp. With an aggressivepricing strategy, it launched the Ace in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh andMaharashtra - 70 per cent of three- wheeler sales happen in these five states.At a value price point of Rs 220,000, the Ace was targeted to attract buyers who wouldotherwise buy three-wheelers at price points from Rs 120,000-Rs 190,000.Clearly, if the price and product were in place, positioning could not afford to be behind. Butthe advertising was careful that it did not hype-up the looks of the Ace.GLOBAL STRATEGIES The Tata Motors is one of the world’s largest manufacturers of commercial vehiclesapart from being India’s largest passenger automobile and commercial vehicle. The OICAranked it as the world’s 20th largest automaker, based on figures for 2006. Tata motors from being present as an exporter in 70 countries, the company todayfocuses on 15 -20 key countries where it will have a significant presence in terms of volumesand market share. Apart from this the company has expanded its production and assembly 15
  16. 16. operations to several other countries including South Korea, Thailand, South Africa andArgentina and is planning to set up plants in Turkey Indonesia and Eastern Europe. In internationalization the company’s first step was to align the international businessto the two business units — the Passenger Car Business Unit (PCBU) and the CommercialVehicle Business Unit (CVBU), to bring greater focus and increased synergy between thedomestic and international operations. Tata motors feel that the international business needsto be looked at from a perspective that goes beyond volumes and presence in many countries.According to Dr V. Sumantran, executive director, PCBU, the company has now embarkedon a road where exports are made an integral part of business and they do not think of salesoutside the country as a separate activity but integrated within the mission of each of itsbusinesses. According to Mr. Ravi Kant, executive director, CVBU in a cyclical businesssuch as one of their, it is important that they hedge against cyclicality and internationalbusiness offers an opportunity as different countries go through peaks and troughs in demandat different points in times and hence capacity utilization is more effective and risks ofdownturns can be mitigated. Tata motors as part of their business strategy to make an entry in new and yetuncharted markets entered the market of China and the CIS countries. Besides the assemblyplants that Tata Motors has in Bangladesh and Malaysia, the company’s recent order for 500buses from Senegal will involve providing technical and commercial assistance to theSenegalese government for setting up a bus body building plant. Tata Motors has been short-listed for South Africa’s "Taxi Project" in which the government will provide an entirely newtransport system in that country. A joint venture project for bus body building in Ukraine andserious due diligence into the opportunities available in the Chinese market are other areaswhere Tata Motors is looking to create new opportunities. In addition, inorganic growththrough acquisitions also quickens the process of internationalization of the company. In2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:  Company’s global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.  To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development ProjectThe synergies were significant – a presence in the 250 to 400 HP ranges of trucks is what theKorean company brings to the table. This complements the existing product range of TataMotors which delivers vehicles up to 210 HP.In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rightsin the company. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., aBrazil-based global leader in bus body building. This joint venture is to manufacture andassemble fully-built buses and coaches targeted at developing mass rapid transportation 16
  17. 17. systems. The joint venture will absorb technology and expertise in chassis and aggregatesfrom Tata Motors, and Marcopolo will provide know-how in processes and systems forbodybuilding and bus body design. On March 26, 2008 Tata Motors agreed to purchaseJaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn (£1.15bn). Tata Motorshas also acquired from Ford the rights to three other brand names: Daimler, Lanchester andRover. The possible reasons behind the acquisition are:  These are the marquee brands and the legacy of both the Land Rover and Jaguar are well recognized badges in the up market SUV (sports utility vehicle) and luxury car segments respectively fuels the Tata motors global aspirations. This buy out establishes its global footprints as a company with premium brands. Also the company now can compete with giants like BMW, Mercedes and Audi.  This acquisition also gives Tata motors to access to a readymade product pipelines and technology. Developing a car from the scratch could otherwise take the company anywhere between two and five years.  The technology that propels the top-end cars is changing according to auto experts and the hybrid technology will take over the luxury cars in a decade. Post the takeover the Tata’s won’t be left over with obsolete technology as the ford’s existing technology will fill the need gap for Tata’s in the interim.Innovation, knowledge, commitment and pride are the Tata Motors greatest asset.STRATEGIES BY COMPETITORSAshok Leyland Ltd  Ashok Leyland Ltd (ALL) has entered into a tripartite arrangement with TVS Coaches and a European company, Irizar, to manufacture bus-bodies for tourist and luxury vehicles.  Iveco, the Commercial Vehicle entity of Fiat and Hinduja Group who together hold 51% shareholding in India’s Ashok Leyland and 59% in Ennore Foundries have concluded a new Agreement to significantly enlarge the cooperation between Ashok Leyland and Iveco  The enlarged cooperation between Iveco and Ashok Leyland is a major step in Ashok Leyland strategy of global profitable growth.  Ashok Leyland has signed an agreement with Japanese Nissan Motor Company for three joint venture companies to develop, manufacture and market light commercial vehicles (LCVs), powertrains and technical development. The joint venture companies will cover the following business areas: Vehicle manufacturing company - a company with exclusive rights to manufactureLCV products in India for both the partners.Powertrain manufacturing company - responsible for the manufacture and assembly ofengines and other drivetrain components to be fitted in the LCV products and for exports.Manufacturing will be located in IndiaTechnology development company - responsible for the development of LCV products andrelated powertrains. The company will be owned 50:50 by the two partners. 17
  18. 18.  Ashok leyland plans to foray into the utility vehicles segment with both military and civil models. Ashok Leyland has indigenously developed a new four-wheeler light specialist vehicle (LSV). Ashok Leyland’s LSV is a Humvee-type vehicle and the company will offer a prototype to the Indian army for field trials soon.  Commercial vehicles manufacturer Ashok Leyland is planning to enter the luxury bus market with the launch of its top end vehicle `InterCentury Luxura by the second quarter of the next fiscal.Mahindra & Mahindra Ltd  A wholly owned affiliate of Navistar International Corporation (Other OTC: NAVZ),signed a joint venture agreement with Mahindra & Mahindra Ltd. of India to produce diesel engines for medium and heavy commercial trucks and buses in India.  Mahindra, which was defeated in a bidding contest by rival Tata for Jaguar and Land Rover, has partnered with Atlanta-based Global Vehicles USA, which will distribute the vehicles, establish marketing plans and manage a network of hundreds of dealers that have signed up to sell Mahindras throughout the U.S.  Mahindra & Mahindra will set up a world class plant in Maharashtra to manufacture commercial trucks through its joint venture with US-based truck major International Truck and Engine Corp. This JV will produce medium & heavy commercial vehicles which would be designed and developed with in-house capabilities.  The venture will leverage M&Ms distribution network to rapidly launch a full range of M&HCV based, in part, on ITECs existing product line and adapted for the Indian market.  M&M is looking to export 20 per cent of its total produce which could be roughly at 40,000-50,000 vehicles per annum. The company is looking to become a major export player. The vehicles will be designed and developed with in-house capabilities. INDUSTRY PROFILE One of the major global automotive industries in the coming years. A number ofdomestic companies produce automobiles in India and the growing presence of multinationalinvestment, too, has led to an increase in overall growth. Following the economic reforms of1991 the Indian automotive industry has demonstrated sustained growth as a result ofincreased competitiveness and relaxed restrictions. The monthly sales of passenger cars inIndia exceed 100,000 unitsHistoryIn 1953, the government of India and the Indian private sector initiated manufacturingprocesses to help develop the automobile industry, which had emerged by the 1940s in anascent form. Between 1970 to the economic liberalization of 1991, the automobile industrycontinued to grow at aslow pace due to the many government restrictions. A number ofIndian manufactures appeared between 1970-1980. A number of foreign firms initiated jointventures with Indian companies.Timeline of Indian automobile industry: • 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company, Mumbai 18
  19. 19. • 1901 First Indian to own a car in India - Jamshedji Tata • 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata • 1905 Fiat Motors • 1911 First Taxi in India • 1924 Formation of traffic police • 1928 Chevrolet Motors • 1942 Hindustan Motors • 1944 Premier Auto Limited • 1945 Tata Motors • 1947 Mahindra Motors • 1948 Ashok Motors • 1948 Standard Motors • 1974 Sipani Motors • 1981 Maruti Udyog • 1994 Rover Motors • 1994 Mercedes Benz • 1994 Opel • 1995 Ford Motors • 1995 Honda SIEL • 1995 Reva Electric Car Company • 1995 Daewoo Motors • 1996 Hyundai Motors • 1997 Toyota Kirloskar Motors • 1997 Fiat Motors (Re-Entry) • 1998 San Motors • 1998 Mitsubishi Motors • 2001 Skoda Auto • 2003 Chevrolet Motors (Re-Entry) Following the economic reforms of 1991, the automobile section underwentdelicensing and opened up for 100 percent Foreign Direct Investment. As urge in economicgrowth rate and purchasing power led to growth in the Indian automobile industry, whichgrew at a rate of 17% on an average since the economic reforms of 1991. Increased presenceof multiple automobile manufacturers has led to market competitiveness and availability ofoptions at competitive costs. India was one of the largest manufacturers of tractors in theworld in 2005-06, when it produced 2,93,000/- units. India is also largely self-sufficient intyre production, which it also exports to over 60 other countries.The following are some of the notable Indian automobile manufacturers: Company Description ProductAshok Ashok Leyland is a commercial vehicle 18 seater to 82 seater double-deckerLeyland manufacturing company based in buses, 7.5 tonne to 49 tonne in haulage Chennai, India. In 1948, Ashok Motors vehicles, special application vehicles, was set up in what was then Madras, and diesel engines for industrial, for the assembly of Austin Cars. The marine and genset applications. Companys name changed soon with 19
  20. 20. equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. Ashok Leyland has six manufacturing plants: a plant at Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II, along with a press shop), and the assembly plants at Alwar and Bhandara. Gas-cylinder carrier, copied from 3- wheel Vidal & Sohn Tempo-Werke (German) Hanseat; Matador, a version Force Motors, formerly Bajaj Tempo, of Hanomag van and light-truck (1.5Force Motors is a Pune-based manufacturer of a tonne payload); Tempo-traveller,Ltd number of commercial vehicles Indian version of Daimler-Benz T-1 transporters; Man-Force Trucks, licensed version of MAN AG trucks; and UVs copied from Daimler-Benz. Hindustan Motors is one of the oldest Trekker(discontinued), Land master Indian car manufacturers in India. It is (discontinued), Contessa perhaps best known for theHindustan (discontinued)—5th generation Ambassador which has remainedMotors Vauxhall Victor, and the Ambassador virtually unchanged for about 30 years. —a version of the 1950s Morris It is still very popular as a taxi and is Oxford. widely used by Indian politicians. The automotive section of Mahindra started off when a first batch of seventy Armada (discontinued), VoyagerMahindra & five Utility Vehicles (UVs) was (discontinued), Bolero. Commander, CL,Mahindra imported in CKD condition from MaXX, Scorpio, and Mahindra andLimited Willys in 1947. It presently Mahindra Classic. manufactures Jeeps along with agricultural equipment and light trucks.Maruti Maruti Suzuki (formerly Maruti 800, Omni, Alto, Gypsy, Swift, SX4,Suzuki Udyog) was formed as a partnership WagonR, Versa, Zen Estilo, Grand between the Government of India and Vitara, and Swift Dzire. Suzuki of Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car manufacturer in India and especially dominant in the small car sector. Then it brought out the 20
  21. 21. Maruti 1000, made by Maruti Udyog was the first ever contemporary sedan- type car launched in India. The car (which Suzuki sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs.3.81 lakh, it was back then the costliest car released in the Indian market. Then the company replaced it with Esteem and from those days on a line of Suzuki cars rolled out in the Indian market. Walchand Hirachand started Premier Automobiles Ltd. (PAL) in 1942. They assembled De Soto and Plymouth carsPremier Padmini (discontinued), 118 NE in 1946 in association with ChryslerAutomobiles (discontinued), and Premier Sigma. from the United States. They also manufactured the Premier Padmini which was a version of the Fiat 1100. REVA Electric Car Co. is the producer of the Reva (G-Wiz), an electric car intended for use as a City car. More REVAs have been produced than anyREVA REVA (G-Wiz). other currently selling electric car and sales are increasing. It is currently the worlds leading electric car manufacturing company. Tata Motors, formerly known as TELCO, is the largest automobile manufacturer in India and commands more than 70% of the commercial vehicle market in India and has also increased its share of passenger vehicle market. It was responsible for Indica, Indigo, Indigo Marina, Safari,Tata Motors developing Indias first indigenous Sumo, TL, and Tata Nano. vehicle, the Indica. It has proved to be a success in the market after initial quality problems. The company also exports the car to many countries. Tata owns major stake in Jaguar and Range Rover. 21
  22. 22. Some of the multinational companies in India are:-Company Description Product In January 2008, Audi started production with the Audi A4 and A6 atAudi A4, A6, A8, R8, Q7, and TT. its factory in Aurangabad in the state of Maharashtra. BMW is a manufacturer of sport sedans. BMW enjoys good brand recognition in India. It has set up a plant in Chennai, Tamil Nadu, to 3 Series, 5 Series, 6 Series, 7 Series, X3,BMW manufacture cars locally exclusively and X5. for the local market with no plans for export. It set up the plant to circumvent high import duties. The Fiat Uno was one of the first products to be introduced. The Fiat Palio was later introduced and was initially a success with its style and ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency. Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the Uno (discontinued), Palio, Palio Stile, Fiat Siena to Fiat Petra without much Siena (discontinued), Siena Weekend success. It roped in Sachin Tendulkar (discontinued), Petra (discontinued), as one of its brand ambassadors. Even Adventure, Fiat Bravo—sold inFiat Michael Schumacher appeared in an ad collaboration with Tata Motors, Fiat 500 for the Palio. It has entered now into an —sold in collaboration with Tata Motors, alliance with Tata Motors to jointly and Fiat Linea—sold in collaboration manufacture cars at its plant in with Tata Motors. Ranjangaon, near Pune. The facility will enable the two companies to make about 200,000 cars per annum, and also house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance will also see Tata Motors use Fiats diesel technology the 1.3 litre multijet diesel engine for its own vehicles. 22
  23. 23. Ford entered India in collaboration with Escort (discontinued), Ikon, MondeoFord Mahindra & Mahindra in 1995 with a (discontinued), Endeavour, Fusion, andMotors plant in Tamil Nadu. The first model Fiesta. was the Escort. Chevrolet has been a recognized brand in India for several decades. The model line-up consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered India Tavera—rebadged Isuzu Panther, with the Opel brand, but the Opel brand Forester (discontinued)—rebadged First was dropped in March 2006 because Generation Subaru Forester, Aveo— sales were at an all time low due to second Generation Daewoo Kalos sedan, high prices and General Motors wantedGeneral Aveo UV-A—first Generation Daewoo to focus more on their Chevrolet brand.Motors Kalos hatchback, Optra—rebadged Since the Chevrolet brand was Daewoo Lacetti, SRV—rebadged introduced in India, there have been no Daewoo Lacetti, Spark—formerly new Opel products. GMs Indian Daewoo Matiz in India, and Captiva— operations were originally a JV recent launch in India. between Hindustan Motors and GM, with most of GMs vehicles assembled at Hindustans plant in Halol, Gujarat. Since then, GM India is now wholly owned by GM. Honda Siel Cars entered India in 1995. It sells 4 cars in India—the City, Civic, Accord, and CR-V. The manufacturing plant of Honda Siel is located inHonda Greater Noida. The model of Accord Accord, City, Civic, and CR-V. sold in India is the 2003 model. The most inexpensive car from Honda— The City. The most expensive—The Honda Accord V6. Santo—second generation Hyundai Atos, Accent—second generation Hyundai Accent sedan, Sonata—sold as the Sonata When Hyundai entered India, the brand Embera, Verna—third generation was virtually unknown in the Indian Hyundai Accent sedan, Getz—sold as theHyundai market. But now Hyundai has good Getz Prime, Elantra—3rd generation market because of its models like Hyundai Elantra sedan, Terracan SANTRO, Accent etc. (discontinued), Tucson, i10—brand new small car, global launch in India in 2007, and i20. 23
  24. 24. Renault- Logan (in partnership with Mahindra and -Nissan Mahindra). Mercedes-Benz has had to cater to the ever gowning luxury segment in India, especially after the arrival of the other luxury German manufacturers. Now, Mercedes-Benz cars are launched in C-Class, E-Class, S-Class, ML-Class,Mercedes- India soon after the worldwide launch SL-Class, CL-Class, SLK-Class, CLK-Benz and homologation as opposed to earlier, Class, GL-Class, and CLS-Class. when Mercedes-Benz had monopolized the niche Indian market. In 2007 they launched the SLK-Class and CLS- Class. Lancer - Sixth Generation Mitsubishi Lancer, Cedia—seventh generationMitsubishi Mitsubishi Lancer, Pajero—second -Motors generation Mitsubishi Pajero, Montero— third generation Mitsubishi Pajero, and Outlander. Škoda Auto is an important car manufacturer of India. It recentlyŠkoda launched the Laura; the Octavia still Octavia, Superb, Laura, and Fabia. continues to exist. Škoda also offers the Superb in India but its not too popular. Qualis (discontinued)—3rd generation Toyota Kirloskar sells 4 car models in Toyota Kijang, Camry—7th generation India. It stopped producing the Toyota Toyota Camry (the latest generation Qualis to make way for the ToyotaToyota Camry), Corolla—9th generation Toyota Innova, which was launched in India in Corolla, Innova, and Land Cruiser Prado 2005. The most expensive car from VX—latest generation Toyota Land Toyota is the Land Cruiser Prado. Cruiser (PRADO). 24
  25. 25. LITERATURE SURVEYProduct:Anything offered to a market for attention, acquisition, use, or consumption that might satisfya need or want. Product provides the functional requirements sought by consumers.Product  Is a bundle of satisfaction that a customer buys.  Almost always a combination of tangible and intangible benefitsA product may be new to the company, but not to the customers and in reverse a product maybe new to the customers but not to the company.NEW PRODUCT DEVELOPMENT PROCESS:  IDEA GENERATION  IDEA SCREENING  CONCEPT TESTING  MARKETING STRATEGY DEVELOPMENT  BUSINESS ANALYSIS  PRODUCT DEVELOPMENT  TEST MARKETING  COMMERCIALISATION / LUNCING The product TATA WINGER CARGO on which the research was being conducted isnow at the commercialization stage of the new product development process. The variousfeatures of the product are:- VARIABLES SUB CATEGORY FEATURES 25
  26. 26. Emission BS III Engine Capacity 1948 cc Power 90 hp at 4300 rpm Torque 190 Nm at 2000-3000rpm Fuel Diesel Driveline Clutch Friction plate 215mm Gear box 5 forward and 1 reverse Axle FWD Power assisted rack and Steering/Brakes Steering pinion Turning radius 6.4 m Front brakes Disc with twin pot caliper Rare brakes Drum with LSPV hydraulic,dual Service brakes circuit,vacuum assisted McPherson strut with coilSuspension Front spring Double parabolic leaf spring with hydraulic telescopic Rear shock absorber Dimensions Wheel base 3200 mm Overall width 1905 mm Overall length 4920 mm Overall height 2445 mm Overhang front 940 mm Overhang rear 780 mm Track front 1560 mm Track rear 1526 mm Min ground clearance 165 mm Cargo area volume 7.8 cu.m Cargo box dimension(LxWxH)mm 2755x1650x1900 Approach angle 19o 26
  27. 27. Departure angle 17o Weights Gross Vehicle weight 2850 kgs Pay load 1200 kgs Misc Tire 185 R 14 LT, 8 PR Fuel tank 60 L Mileage 10.5 kmpl Some of the benefits of the product are:-  Monocoque body  Large Cargo area.  High power to weight ratio  BS III engine for an eco-friendly drive  Safe drive  Driving comfort  Good suspensions to handle fragile goods  Car like passenger comfort  Stylish next generation looks  Low ground clearance for easy loading and unloading  Best value for money PRICEPricing Policies:If a firm has the power in its market to set its own price, it can adopt a pricing policy.  Market penetration pricing: setting prices of products relatively low compared to those of similar products  Destroyer pricing: Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally smaller and weaker) out of business or prevent new entrants  Follow-the-leader pricing: A pricing strategy adopted by firms which copy the market leaders prices  Skimming: High price, Low volumes, Suitable for products that have short life cycles or which will face competition at some point in the future. TATA WINGER CARGO uses the the market penetration pricing policy. The price of WINGER CARGO is set to be 5.72Lakhs(Ex-showrom).PLACEWhat is a Marketing Channel?  This is a set of interdependent organizations involved in the process of making a product or service available for use or consumption.Channel functions  Gathers information on customers, competitors and other external market data  Develop and disseminate persuasive communication to stimulate purchases  Agreement on price and other terms so that transfer of ownership can be effected 27
  28. 28.  Placing orders with manufacturers  Acquire funds to finance inventories and credit in the market  Assume responsibility of all risks of the trade  Successive storage and movement of products  Helps buyers in getting their payments through with the banks  Oversee actual transfer of ownershipTypes of intermediaries  Distributors  Wholesalers  Retailers  Department stores WINGER CARGO has only distributors as intermediaries.PROMOTION Promotion is only a means of communication about the product without the motive of persuading for that act which a customer do not want to do. In marketing terms, the role of promotion is to inform, remind and persuade existing or prospective customers to accept, resell, recommend or use of a product, service and ideas. What is Promotion mix? Promotion mix consists of careful blending of advertising, personal selling, sales promotion, public relations, publicity and propaganda; to accomplish the marketer’s promotional objectives. When deciding the promotional mix, the management should consider:- The target audience/ Market size and concentration  The objective of the promotional effort.  The nature of the product.  The stage of the product’s life cycle.  The funds available for the promotion/ Resource  Availability and the cost of each promotional tool.  Customer information needsElements under Promotion mix a) Advertising b) Sales Promotion c) Personal Selling d) Public Relations e) Publicity f) Propaganda For WINGER CARGO advertising, public relations and publicity was carried out. Aconsistent grass root interaction with the customers was also done for awareness generation,conversion and sustenance. The various tasks carried out are:- • The target levers were first identified such as:- Courier, Logistics, FMCGs, Bakeries, Newspaper circulation departments, Pharmaceuticals, Cash van companies, Packers & Movers. • Database regarding the potential customers from each segment was prepared. 28
  29. 29. • An audio visual presentation was prepared to be used for showing the customers. • Demo was given to each segment for a touch and feel experience. • Leaflets were designed. • Customers were shown the way the can also carry out the branding of the organization with the help of the vehicle. OBJECTIVE Identify the levers Recognize the potential customers from each lever Customer awareness regarding the product(WINGER CARGO) Determinacy of the taste and preference of the customers lever wise Measurement of the potentiality of the targeted group Branding of the product Understand the requirements of the customers Upgradation of customer’s preference. 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. 29
  30. 30.  To know what people perceive and thinking about Tata Motors and its products.  To find out the satisfaction level of people. SCOPE OF THE PROJECT In the present world of changing technology and turbulent environment, a firm has toconstantly understand the future demand and latest trend in market. For this, they should belike an open system so that they can change themselves according to the environmentalchanges, only then a firm can survive. I did marketing for TATA MOTORS for two months. I collected data byinterviewing various customers for the fulfillment of my market research. The extent of my project is:- • Consumer preferences are found out which would help the organization for furtherdevelopment of strategies, enhancement of the present strategies and new productdevelopment. • Database of the budding customers is being prepared which would prove profitable inthe near future. • Customer’s attitude towards the brand is identified. • Brand’s position in the market is known. 30
  31. 31. • All the competitors are recognized. This would facilitate the organization in making a proper SWOT analysis. • Market share of the competitors are found out that would help the organization in building up further strategies to gain market share. METHODOLOGY Methodology is defined as1. "the analysis of the principles of methods, rules, and postulates employed by a discipline" or2. "the development of methods, to be applied within a discipline"3. "a particular procedure or set of procedures Methodology refers to the rationale and the philosophical assumptions that underlie a particular study. SOURCES OF DATAA. Primary data:- primary data were collected through a questionnaire designed separately for customers. A pilot survey was conducted to test the utility of the questionnaire and necessary changes being made.B. Secondary data:- secondary data was collected from i. Consortium Automobiles ii. and MODE OF DATA COLLECTION The requisite data was collected using two methods i-e 31
  32. 32. i. Questionnaire:- a printed questionnaire was given to each customer with a request to answer it and return it. ii. Survey:- Personal interview was done to record the likes and dislikes of the customers.RESEARCH INSTRUMENT:- Printed questionnaireSAMPLE SIZE:- 77SAMPLING TECHNIQUE:-Simple random sampling and judgmental sampling.SAMPLING AREA:- Bhubaneswar.METHODS OF DATA ANALYSIS:- • Bar graphs • Pie-charts LIMITATIONS • The study is confined to Bhubaneswar 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. • Availability of the respondents amidst their busy schedule did not permit detailed study. • Lack of professional approach since researcher is a student. • Limited knowledge of the researcher in the field of research may lead to interpretation errors. 32
  33. 33. 33
  34. 34. LEVERWISE OWNERSHIP ANALYSIS OF THE TARGETED CUSTOMERGROUP Owners(in %) non owners(in%)COURIER AND LOGISTICS 66.6 33.4PACKERS AND MOVERS 100 0MARINE EXPORTERS 100 0CATERING SERVICES 50 50F.M.C.G 77.7 22.2PHARMACEUTICALS 40 60LOCAL TRANSPORTERS 100 0BAKERY 66.6 33.3CASH VAN COMPANIES 100 0F.M.C.D 22.2 77.7INTERPRETATION Most of the customers contacted use their own vehicles for their business. Only few segments hire vehicles. 34
  35. 35. ANALYSIS ON TYPE OF CARGO BOX USED BY TARGETEDCUSTOMER OPEN CLOSED CONTAINER(in%) CONTAINER (in %)COURIER AND LOGISTICS 25 75PACKERS AND MOVERS 83.3 16.7MARINE EXPORTERS 0 100CATERING SERVICES 50 50F.M.C.G 62.5 37.5PHARMACEUTICALS 16.7 83.3LOCAL TRANSPORTERS 80 20BAKERY 0 100CASH VAN COMPANIES 0 100F.M.C.D 77.7 22.2INTERPRETATION It was found that the preference of the customers for open container vehicle or closedcontainer vehicle depends upon their type of business. But mostly closed container bodiedvehicle is preferred so that the goods could be protected from certain natural calamities like:-rain, hot sun etc. The cash van companies, confectionaries, marine exporters and thepharmaceutical distributors make use of only closed container bodied vehicles. 35
  36. 36. MAIN CONCERNS OF CUSTOMERS FOR DELIVERY VAN FEATURES ACCEPTANCE (in %) PRICE 20 FUEL EFFICIENCY 38 LOAD CAPACITY 27 WARANTEE 8 WATERPROOFING 7INTERPRETATION Customer’s primary importance is for fuel efficiency then loading capacity and then toprice. The others are of secondary importance. 36
  37. 37. Customer perception about delivery van STONGL MILDL Y MILDLY NEITHER Y DISAGR DISAGR AGREE NOR AGRE STRONGL EE EE DISAGREE E Y AGREEVOLUME CAPPACIITY 15 19 0 8 38LOAD CAPACITY 0 16 0 20 44BUYING DECISIONINFLUENCED BY FINALPRICE 30 28 0 10 12BUYING DECISIONINFLUENCED BYAVAILABILITY OF EASYFINANCE 0 0 5 5 70NO TIME RESTRICTIONS 0 0 20 30 30HIGHER MILEAGE 0 0 0 0 80ELEGANT LOOKING 0 0 40 20 20GOOD SUSPENSION 0 0 13 10 57EXCELLENT AFTER SALESSERVICE 0 0 0 4 76INTERPRETATION Higher mileage, excellent after sales service, availability of easy finance etc are some of the features to which the customers strongly agree to. 37
  38. 38. FEATURE ACCEPTABILITY of winger cargo LOADING FUEL LOADING ECO- AREA PRICE EFFICIENCY VOLUME FRIENDILY LIKE 58 7 49 25 77 DISLIKE 22 73 31 45 3INTERPRETATION From the graph it is found that WINGER CARGO is disliked by people because of itshigh price. The BSIII engine makes it very eco-friendly. The customers appreciate the loadingarea of the vehicle.A STUDY OF MARKETING STRATEGIES OF SWIFTAZN-08-10-DIMAT-1-A STUDY OF MARKETING STRATEGIES OF SWIFTAZN-08-10-DIMAT-2-DECLARATION I Ali Zuhair Naqvi, Master of Business Administration (MBA) 3rd Semester studentfrom Disha Institute of Management And Technology(DIMAT) hereby declare that the 38
  39. 39. Seminar Report Titled³Ma r k etingstr at egi es of Swift ´ is a genuine work done by me & allthe information collected is authentic to the best of my knowledge.I hereby declare that this report is the record of authentic work carried out byme during theacademic year 2009-2010.Ali Zuhair Naqvi`MBA 3rd Sem.Section ± µA¶A STUDY OF MARKETING STRATEGIES OF SWIFTAZN-08-10-DIMAT-4-INDEXSl. No.ParticularsPage Number1.Introduction52.Indian Automobile Industry53.History54.Overview75.An Introduction to Maruti Udyog Ltd.156.Products of Maruti Suzuki177.Competitors of Maruti Udyog Ltd.188.Competitors of Maruti Suzuki Swift209.Marketing Mix2110.Swot Analysis2511.Objectives of the Study3212. 39
  40. 40. Limitations3313.Conclusions & Recommendations3314.Bibliography3415.Weblography34VOLUME VS PRICE ANALYSIS OF COMPETITORS OF WINGERCARGOVehicle TATA Force Maruti Bolero Mahindra Bolero Ace Super TATA Winger Tempo Omni maxi Max Pickup HT Ace 207 DI Cargo Traveller cargo truck Pickup FBvolume 8.6 8.6 1.5 4.6 6.5 6.4 4.6 5.8 6(Cu.M)Price 57281 625000 23126 40085 505778 55933 33750 393500 514112 1 9 0 9 5 40
  41. 41. INTERPRETATION When price and volume is compared then it is found that WINGER CARGO iseconomic in comparison to its competitors. It has a volume of 8.6 cu.m and th price is around572811(ex-showroom).ANALYSIS OF FUEL EFFICIENCY VS VOLUME OF CARGO BOXvehicle maximoMah.. wingerTATA pickupBolero Force trumph Max pickup Bolero truck Omni cargo TATA 207 TATA 407 Force m40 Max truck Force van Super ace Tata aceVolume 1.5 4.5 4.8 5.1 5.85 5.75 5.3 5.9 6.8 6.58 7.3 8.7 8.7 8(in cu.m) 9Fuel 14 18 14 14 14 15 18 20 13 14 16 12 9 8efficiency(in kmph) 41
  42. 42. INTERPRETATION The customers interpreted that the Force m40 is the ebst in the market when uel andcargo space is compared. LEVERWISE MODE OF OPERATION OF LOGISTICS ANALYSIS ACE TATA 407 TATA ERS 3WHEEL 709 TATA PICK UP MAH. OMNI BOLERO 207 TATA TRUKK APE FORCE ES VEHICL HEAVYCOURIER AND 10.LOGISTICS 47.5 26.3 10.5 0 5.2 5 0 0PACKERS ANDMOVERS 66.6 16.6 16.6 0 0 0 0 0MARINE EXPORTERS 10 30 0 30 20 10CATERING SERVICES 50 50 19.F.M.C.G 27.7 19.4 11.1 4 2.7 2.7 2.7PHARMACEUTICALS 33.3 33.3 33.3LOCALTRANSPORTERS 33.3 16.6 50 33. 16. 16.BAKERY 33.2 2 6 6CASH VANCOMPANIES 20 10 20 10 30F.M.C.D 50 22.2 11.1 11.1 5.05 100% 90% HEAVYVEHICLES 80% FORCE 70% APETRUKK 60% TATA 207 50% BOLERO 40% OMNI 30% MAH. PICK UP 20% TATA 709 10% 3WHEELERS TATA 407 0% TATA ACE 42
  43. 43. INTERPRETATION TATA Ace is being widely used in the market. This shows that there is a competitonwithin the brand. Packers and movers are the highest user of the vehicle TATA Ace. ACCEPTANCE OF WINGER CARGO ACCEPTANCE( IN NO.) LIKE 43 DISLIKE 32 NOT INTERESTED 5INTERPRETATION There were very few not interested customers but most of the customers visited likedwinger cargo because of its elegant looks, good suspension, user friendliness etc. there weresome customers who disliked winger cargo and the reason was found to be higher price andin comparison lower mileage. 43