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Impact of Advertising on Customers in Tata Motors


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The consumer durable market in India has been very competitive in the recent years, with opening up of market for international players due to liberalization; the domestic players are facing a tough competition. So it‟s time for domestic companies to frame new strategies for their production and marketing activities. An evaluation of the effectiveness of the past activities of a company will enable the company in framing these new strategies. Such an effort has been made through this market research to know the on Customers in TATA MOTORS (A case study in AUTO MATRIX, HASSAN).

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Impact of Advertising on Customers in Tata Motors

  1. 1. http://www.project Visit for more information Introduction The consumer durable market in India has been very competitive in the recent years, with opening up of market for international players due to liberalization; the domestic players are facing a tough competition. So it s time for domestic companies to‟ frame new strategies for their production and marketing activities. An evaluation of the effectiveness of the past activities of a company will enable the company in framing these new strategies. Such an effort has been made through this market research to know the on Customers in TATA MOTORS (A case study in AUTO MATRIX, HASSAN). Advertising is the dissemination of information concerning an idea, service or a product to compel action in accordance with the intent of the advertiser. It is any paid form of nonpersonnel presentation of ideas, goods or service by an identified sponsor. The role of advertising in the promotional plan of a company is very vital. Advertising, whether it is on a national, local or direct basis is important as it can inform, remind or persuade established or potential customers of the existence of a product or organization, developing an image through advertising amount to giving a brand a distinct identity or personality. A research study on “ ON CUSTOMERS in TATA MOTORS AUTO MATRIX” HASSAN was aimed at analyzing the effectiveness of advertisement. The survey was conducted at HASSAN through a questionnaire for customer who uses TATA cars. The customer were interviewed on the various aspect like specific programs followed, their awareness about advertisement, their impression about the advertisement, the newspapers etc. the perception with respect to various attributes like price, range, style/design, cost of spares, availability of spares, service, brand names, film stars role in advertisement, and ease of purchase were also included in the questionnaire. The study also made an effort to understand what makes an advertisement popular, whether it is pictuarization, music, models or humor. Http:// Page 1
  2. 2. http://www.projects Consumers are increasingly exposed with advertising campaigns in which they are often confronted with idealized representations of the world (e.g., idealized situations, attractive models). A large amount of studies has shown that advertising presenting idealized images can have strong effects on consumer satisfaction and welfare. However, obtained results were not consistent with each other. Some studies found that advertising had an increasing effect on consumer satisfaction; other studies found that advertising had a negative impact and led to consumer dissatisfaction. No research has ever tried to resolve why conflicting results were obtained in this area of research. Moreover, there exists no extant consumer behavior model on the effects of advertising on consumer satisfaction. Consumers really play an important and a vital role in the success of any advertisement. Any advertisement is said to be a successful one when consumers are attracted to a particular advertising. Advertisements are made by keeping the consumer s‟ perspective in the mind so that it can appeal the right consumer which the company needs to target for their product. People like the advertisements which appeal them or through which they can connect or relate themselves. Some of the emotional advertisements also really work on consumers as the consumers feel that someone like them is also using that product. Problem statement In Indian car industry, small car segments have played a very crucial and significant role due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into Indian markets, the pace of competition has hiked. As today s world is of competition, a firm has to attract the interest of the customers‟ and provide satisfactory service to them according to their taste and requirements. They have to know about the changing customer needs and preferences. Marketing occupies an important position in the organization of business. Peter Drucker, points out that the purpose of marketing or business is “to create a customer”. Few decades back the seller was the king of the market; the simple reason for this was lack of competition. Http:// Page 2
  3. 3. http://www.project Marketing is the human activity directed at satisfying human wants through the exchange of goods and service. Marketing management occupies the most important position in business management. Marketing management in a firm is critical as it deals with customers and their needs. The major task of marketing management is to adopt firm s resources to‟ market opportunities The essence of marketing concept is that the customer and not the product shall be the heart of the entire business system. It emphasizes on customer oriented marketing process, plans. Policies and programs, which are formulated to serve efficiently the customer demand. “Marketing is so basic that it cannot be considered as a separate function. It is the whole business seen from the point view of its final results i.e., from the customer s point‟ of view”. A consumer is the king and has the right to choose from a large variety of offering. He is the central point and all marketing activities revolve around him. Today market is a more consumer oriented in the sense all the business operations revolve around the customer satisfaction and service. Thus, marketing is often dynamic, challenging and rewarding. It can also be frustrating and even disappointing but never dull. The topic “” is chosen to study the Advertising strategies adopted in M/s AUTO MATRIX dealers for M/s TATA MOTORS Ltd. This project deals with how M/s AUTO MATRIX defines its consumer target and uses its marketing tools in the best way to attract and satisfy their needs and wants competitively and profitably. Here marketing functions are limited to the function of buying and selling, but they include all functions necessary to satisfy the customer such as financing, after sales services, etc. Customer oriented marketing approach points out the primary task of business enterprise is to study needs, besides the value of potential customer on the basis of latest and accurate knowledge of marketing demand. Marketing management usually represents all managerial efforts and functions to operate the marketing concept, not only in letters but also in the spirit. Marketing concept Http:// Page 3
  4. 4. http://www.projects demands customer oriented marketing plans, programs and policies so that the merchants can assume perfect correlation between demand and supply. Thus, marketing is a matching process by which a producer provides a marketing mix i.e., product, price, promotion and physical distribution that meet consumer s‟ demand of a target market within the limits of society. Finding out “The” is the important statement of the problem in this project. This will help the company to improve their marketing as well as servicing strategies adopted by them. This also helps them to know their current position in the market. Objectives of the Study: The study is conducted with reference to The important objectives of this study are:-  To study the advertising strategies adapted by the manufacturing company M/s.TATA MOTORS.  To know the marketability of the products, to identify major problems the company/dealer is facing and to provide suggestions to overcome such problems.  To analysis the product ranges of the company.  To study advertising and promotional activities of the company.  To assess the selling performance of the dealer and services provided by them.  To study the attitude of customers towards the facilities provided at the centre.  To evaluate the effectiveness of marketing mix strategy adopted by AUTO MATRIX. Http:// Page 4
  5. 5. http://www.projects Scope of the study: This study was conducted with reference to „ on customers in AUTO MATRIX, an authorized dealer for TATA MOTORS, in HASSAN.‟ This study was conducted to evaluate the effectiveness of advertising strategy adopted by TATA MOTORS; hence it studies the marketing activities. It also studies the opinion of the management towards publicity and promotion of products of the company. The study also makes an effort to show the inter-relation between the product and the consumer to know how TATA MOTORS would compete with its competitors in recent years in marketing and promotional activities. The result of the study helps the company to gives better service to their customers, as the feedback is directly got from the customers. It also provides a base for the company to gear up to the customer s demands and expectations and also has and‟ understanding of customer needs and preferences in the future. Research Methodology The formidable problem that follows the task of designing the research project is known as the "Research Design". The design of a quantitative research study includes the method for collecting the data. The sample design and construction of the data collection instrument. Purpose of enquiry: The scope of the enquiry is to support the data required to make study on Scope of data: The scope of enquiry is limited to the study of the topic concerned only. Sources of data: The data was collected through primary data collection. Nature and type of enquiry: Non-official Non-confidential Direct: There is 100 degree of accuracy. Sampling Design A sample size of 100 respondents was covered. Random sampling procedure of survey was conducted the primary data. Respondents were classified on the basis of their age, car owned etc. Respondents were intervolved at the showroom. Http:// Page 5
  6. 6. Sources of Data Collection The task of data collection begins after a research problem has defined & Research design of plan cooked out. There are 2 basis ways of data collection. Primary Data  A detailed questionnaire was handed over to a chosen sample.  Frequent visitors to the AUTO MATRIX.  Interaction with Customer.  Discussion with executives of AUTO MATRIX. Secondary Data  Product broachers.  Previous annual report.  Magazines & journals.  Internet. Techniques for data analysis Questionnaire method was used as research instrument for this study. Questionnaire both open ended and closed ended are used for the customers to answer the questions. Pie charts, bar graph Http:// Page 6
  7. 7. Limitations of the Study  The information obtained or the collection of data is limited.  The study is purely academic.  Due to time constraints the study is restrict to HASSAN and prohibited from going deep into the subject.  Only the customers of AUTO MATRIX were considered as respondents.  The survey was conducted in this urban sector of respondents thus it cannot be generalized.  The information provided by respondents could be biased. Http:// Page 7
  8. 8. http://www.project 2.1 Industry Profile Everything began with the invention of the wheel, an achievement that is shrouded in the darkness of history. The first known illustration of a vehicle with wheels is dated to the year 3000 BC. The invention of the wheel ushered in the development of mobility. Ever more refined mechanical systems and ever more ingenious features for carts and carriages made transportation and travel easier. The inventions of Karl Benz, Gottlieb Daimler and Wilhelm Maybach finally ushered in the automotive age. One idea — how many parents? Who invented the automobile? Assumptions concerning the answer to this question differ widely throughout the world. Most Americans believe that Henry Ford invented the car. In England, many people will tell you that the car was invented by Charles Rolls and Henry Royce. The widely held French view is that it was Count de Dion and Georges Bouton who invented the car. In Austria, even highly respected historians believed for a long time that the Viennese Siegfried Marcus (1831-1890) built the first car in 1865 when he fitted a stationary engine to a cart and took it for a 200 meter test run. He went on to build a second vehicle with a four-stroke engine in 1888/89. This was the source of much confusion for decades because it was incorrectly identified as having been built in 1877 and was therefore presented as the world's first automobile. 100 years before Marcus, France's Nicolas Joseph Cugnot (1725-1804) designed and built a vehicle which was later declared to be the first automobile in the world. It was a monstrous steam-powered affair which is said to have caused a road accident during a test run in 1769. In 1801 it was taken to the Conservatoire des Arts et Mé´©ers in Paris without having made any further impact on the history of the automobile. Switzerland's Isaac de Rivaz (1752-1829) worked on gas engines from 1770 and was the first person to equip a stationary gas engine with electric ignition. In 1813 de Rivaz fitted an engine of this type to a vehicle and conducted test runs in the area around Vevey on Lake Geneva. In 1883, the French industrialist Edouard Delamare-Deboutteville (1856-1901) installed a gas engine in a three-wheeled vehicle. The experiment ended when the gas Http:// Page 8
  9. 9. http://www.projects container exploded. The frame of a second vehicle with a liquid fuel engine broke during its first trials. Delamare-Deboutteville gave up. In the USA, George Selden (1846-1922) claimed that he was the inventor of the automobile. This son of a patent attorney had filed a patent application for a motor vehicle in 1879. He was granted the patent in 1895 without ever having built an automobile. Selden bombarded American car manufacturers with demands for license fees. It was not until 1911, following protracted litigation that Henry Ford succeeded in overturning the mysterious Selden patent. From a historical perspective, all of these would-be "world's first automobiles" have one thing in common: the influence which they exerted on the development of automotive transport was extremely short-lived because none of them had the necessary qualities to go down in history as a real breakthrough. In 1886, Karl Benz and the team of Gottlieb Daimler and Wilhelm Maybach initiated general motorization with their inventions. These gave rise to several hundred different types of vehicle and design concepts which continue to be applied anywhere in the world to this day. 2.1.1 Importance of Cars: The development of the car has had an enormous effect on people s way of life‟ throughout the world. Probably no other invention, discovery or technological advance created greater and rapid changes in the society. 2.1.2 Importance of Society: The development of the car has given many people freedom of movement, it enables them to decide where they want to go and when the car influences their proper time and work and how they spend their time and the striking changes in people s time‟ created by a car. Http:// Page 9
  10. 10. http://www.projects Began in US how speed arose the whole of the globe especially in distillers countries but also in developing countries like India, the car is increasingly responding the patterns of living. When the car was the first produced only the well to do could offer, soon however prices, behind as produce increased to the growing demand the lower prices, but the car within reach of more and more people well of urban residing found, which further increased travel. 2.1.3 Economic Impact: Such industrialized natures as the U.S, Japan, Germany, France, Britain, and Italy depend on cars. Cars produced to provide jobs for millions of workers, but even in India translation with little or not, car produced the widespread use of car has become vital to the society that a traveler can use of major importance to the economic well being of all industrial countries and increasing of developing nations home beings making motor vehicle parts the vehicle needed for growth. 2.1.4 Car – a Necessity Now a Day: Gone are the times when a car was considered a status symbol. It is now a necessity. Transport becoming a vital part of human existence and with the advent of the Nonveau Niche, it s the golden age for the automobile industry. One of 20‟ th century s‟ biggest achievements are taking is all into the 21 st century, at full speed. Since the car is becoming the object of desire of more and more people will go for small cars which space wise offers the same. Comfort as that of midsize cars. There are other practical reasons like “SMALL IS BEAUTIFUL”. Idea to spread, “The narrow and crowded roads of India can cope with small cars”- most of these cars are tested under very rigorous road and weather conditions. All companies are hoping that the boom in the automobile industry will ultimately lead to better infrastructure. Http:// Page 10
  11. 11. 2.2 Company Profile Company profile of 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 power trains. 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 Http:// Page 11
  12. 12. 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). Http:// Page 12
  13. 13. 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 Http:// Page 13
  14. 14. 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. 2.2.1 Milestones It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership. 1945: Tata Engineering and Locomotive Co. Ltd. were established to manufacture locomotives and other engineering products. 1948: Steam road roller introduced in collaboration with Marshall Sons (UK). 1954: Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract. 1959: Research and Development Centre set up at Jamshedpur. 1961: Exports begin with the first truck being shipped to Ceylon, now Sri Lanka. 1966: Setting up of the Engineering Research Centre at Pune to provide impetus to automobile Research and Development. 1971: Introduction of DI engines. 1977: First commercial vehicle manufactured in Pune. 1983: Manufacture of Heavy Commercial Vehicle commences. 1986: Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608. Http:// Page 14
  15. 15. 1989: Introduction of the Tata mobile 206 - 3rd LCV model. 1991: Launch of the 1st indigenous passenger car Tata Sierra  One millionth vehicle rolled out. 1992: Launch of the Tata Estate. 1994: Launch of Tata Sumo - the multi utility vehicle.  Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India. 1996: Tata Sumo deluxe launched. 1997: Tata Sierra Turbo launched.  100,000th Tata Sumo rolled out. 1998: Tata Safari - India's first sports utility vehicle launched.  2 millionth vehicles rolled out.  Indica, India's first fully indigenous passenger car launched. 1999: 15,000 bookings for Indica registered against full payment within a week.  Commercial production of Indica commences in full swing. 2000: First consignment of 160 Indicas shipped to Malta.  Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.  Utility vehicles with Bharat 2 (Euro II) compliant engine launched.  Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. 2001: Indica V2 launched - 2nd generation Indica.  100,000th Indica wheeled out.  Launch of the Tata Safari EX  Indica V2 becomes India's number one car in its segment. Http:// Page 15
  16. 16.  Exits joint venture with Daimler Chrysler. 2002: Unveiling of the Tata Sedan at Auto Expo 2002.  Petrol version of Indica V2 launched.  5,00,000th passenger vehicle rolled out.  Launch of the Tata Sumo'+' Series  Launch of the Tata Indigo. 2003: Launch of the Tata Safari Limited Edition.  On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited.  3 millionth vehicles produced.  135 PS Tata Safari EXi Petrol launched  Tata SFC 407 EX Turbo launched 2004: Tata Motors unveils new product range at Auto Expo '04.  New Tata Indica V2 launched  Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement  Tata Motors completes acquisition of Daewoo Commercial Vehicle Company  Sumo Victa launched  Indigo Marina launched  Tata Motors lists on the NYSE 2005: Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune  Tata Ace, India's first mini truck launched  Tata Motors wins JRD QV award for business excellence.  The power packed Safari Dicor is launched  Introduction of Indigo SX series - luxury variant of Tata Indigo  Tata Motors launches Indica V2 Turbo Diesel.  Inauguration of new factory at Jamshedpur for Novus Http:// Page 16
  17. 17. 2006: Tata Motors vehicle sales in India cross four million mark  Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto Expo 2006  Indica V2 Xeta launched  Tata Motors first plant for small car to come up in West Bengal  Tata Motors and Fiat Group announce three additional cooperation agreements 2007: Construction of Small Car plant at Singur, West Bengal, begins on January 2  Tata Motors launches the long wheel base Indigo XL, India's first stretch limousine  Common rail diesel (DICOR) engine extended to Indigo sedan and estate range  Tata-Fiat plant at Ranjangaon inaugurated  Fiat Group and Tata Motors announce establishment of Joint Venture in India  Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level utility vehicle, the Sumo Spacio  Tata Motors launches Indica V2 Turbo with dual airbags and ABS 2008: Indica Vista – the new generation Indica, is launched.  Tata Motors' new plant for Nano to come up in Gujarat  Indigo CS (Compact Sedan), world s first sub four-meter sedan, launched.‟  Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV with the comforts of a family car.  Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.  Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover.  Tata Motors completes acquisition of Jaguar Land Rover.  Indica Vista – the second generation Indica, is launched. 2009: Tata Motors launches the next generation all-new Indigo MANZA  FREELANDER 2 launched in India  Tata Marcopolo Motors' Dharwad plant begins production.  Tata Motors launches Nano - The People's Car Http:// Page 17
  18. 18.  Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and Land Rover in India. 2.2.2 Management Board of Directors: Mr. Ratan N Tata (Chairman) Mr. Ravi Kant Mr. N A Soonawala Dr. J J Irani Mr. R Gopalakrishnan Mr. Nusli N Wadia Mr. S M Palia Dr. R A Mashelkar Mr. Nasser Munjee Mr. Subodh Bhargava Senior Management: Mr. P M Telang: Managing Director - India Operations Mr. Rajiv Dube: President (Passenger Cars) Mr. C Ramakrishnan: Chief Financial Officer Mr. R Pisharody: President (Commercial Vehicles Business Unit) Mr. S N Ambardekar: Head (Manufacturing Operations - CVBU) Mr. S B Borwankar: Head (Jamshedpur - Plant) Mr. A M Mankad: Head (Car Plant) Mr. B B Parekh: Chief (Strategic Sourcing) Mr. U K Mishra: Vice President (ADD and Materials - CVBU) Mr. S Krishnan: Vice President (Commercial - PCBU) Mr. P Y Gurav: Vice President (Corp. Finance - A/c and Taxation) Mr. A Gajendragadkar: Vice President (Corp. Finance - Business Planning) Mr. N Pinge: Chief Internal Auditor Http:// Page 18
  19. 19. http://www.project Mr. R Bagga: Vice President (Legal) Company Secretary: Mr. H K Sethna Corporate Communications: Mr. Debasis Ray: Head - Corporate Communications 2.3 Joint Venture, Subsidiary and Associate Companies Tata Motors has several joint venture, subsidiary and associate companies: Jaguar Land Rover Tata Technologies Ltd. (TTL) and its subsidiaries Telco Construction Equipment Co. Ltd. (Telcon) HV Axles Ltd. (HVAL) HV Transmissions Ltd. (HVTL) TAL Manufacturing Solutions Ltd. (TAL) Sheba Properties Ltd. (Sheba) Concorde Motors (India) Ltd. (Concorde) Tata Daewoo Commercial Vehicle Company Ltd (TDWCV) Hispano Carrocera S. A. (HC) Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL) Tata Motors European Technical Centre plc Tata Motors Finance Limited Tata Motors Thailand Tata Marcopolo Motors Ltd (TMML) Tata Motors(SA) Proprietary Ltd (TMSA) TML Distribution Company Ltd (TDCL) 2.4 Manufacturing Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenization. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution- Http:// Page 19
  20. 20. http://www.projects design, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North 2.4.1 Jamshedpur; Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab & Cowl Factories, and the Novus. The divestments in March 2000 hived off the Axle and Engine plants into independent subsidiaries viz. HVAL &HVTL, respectively. The Truck Division boasts of two assembly lines. The main assembly line, measuring 180m in length has 20 work stations with a vehicle rolling out every 8 minuts. The other line is dedicated to special purpose vehicles and for meeting the requirements of the Indian Army. The uniqueness of the Factory lies in its possession of advanced facilities for manufacturing long members comprising of a set-up of 5000 Tones Hydraulic press line, cut-to-length line for strip preparation purchased from M/s Kohler of Germany and a Camber Correction line. Facility for hot forming of axle halves with a 3000 tone press and heating furnace. Flexibility in manufacturing frames with an off line Proto-typing facility. The Cab, Cowl & Novus Factory is equipped with state- of- art facilities like Centralized Paint Shop and automated painting set up, Robot painting, BIW Fabrication of day & sleeper cabs for trucks, Articulates (Tractor/ Trailer), BIW Fabrication of Cowls for buses, and other miscellaneous applications. The fully equipped Foundry, that the unit is supported by, supplies high-grade SG Iron castings for automobile components and excavators, and is rated as one of the cleaner, better and highly automated foundries in the world. It has an annual capacity of 42,000 MT of Good castings and makes, both, Gey and SG cast Iron casting. It manufactures all critical automobile castings e.g. Cylinder Block, Cylinder Head etc. It has a sophisticated Kunkel Wagner High Pressure Molding line of a rated production capacity of 90 moulds/ hour. This is supported by a sand cooler and sand mixer from Kunkel Wagner. Its melting shop has Medium Frequency Induction Furnaces for melting and Channel Furnaces for holding. The pouring is done by a Channel Press Pour coupled Http:// Page 20
  21. 21. http://www.projects with a Steam Inoculation Dispenser. The core shop has a state- of-the- art Cold Box Machine, making four cores per minute. It has elaborated sand and metallurgical laboratories. In 1993 the foundry was ISO 9002 certified by the Bureau Veritas Quality International, which was later followed by the more stringent QS 9000 certification from the BVQI in the year 2000. Currently it is certified as TS: 16949 by BVC. 2.4.2 Pune; The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tool making facilities in the Indian sub- continent. It houses a Vehicle manufacturing complex which is one of the most integrated automotive manufacturing centers in the country producing a large variety of individual items and aggregates. It is engaged in the design and manufacture of sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as models for the development of new ranges of automobile products. Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fixtures. Over the years, this division has developed expertise in design and manufacture of automated dies, fixtures and welding equipment. Its large design group is fully conversant with state-of-the-art CAD facilities and manufacturing facilities comprising of light and heavy CNC machine shops, jigs boring room, plastic template shop, wood pattern and model pattern shop, five axis precision machine tools and laser control machines. To cope with such a diverse range, four assembly lines have been established, one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars (Indica and Indigo). The Passenger Car Division in 'K' block executes the entire process of car manufacture over five shops - the engine shop, the transmission shop, press and body shops, paint shop and the trim and final assembly shop. The shops are fully automated ensuring that there is minimal chance for error in the manufacturing processes. After the car is completely assembled, it goes through several checks like wheel alignment, sideslip test, brake test, shower test, and a short test run before it is ready for dispatch. All systems such as materials management, maintenance and other activities are Http:// Page 21
  22. 22. http://www.projects computerized, enabling smooth operations and minimum inventory needs. The Electronics Division is engaged in the production of a wide variety of Machine Tool Controllers, PLCs, Test rig instrumentation, Servomotors, Proximity Switches. In addition, it has developed a number of components such as flashers, horns, timers that are used in Tata Motors' vehicles. Industry experts rate the fully automated Foundries at Chinchwad and Maval among the best, worldwide. The Iron Foundry at Chinchwad produced 37,000 Tons of high precision castings in 2006-07 while the Iron Foundry at Maval produced 14000 Tons of spherical Iron castings in 2006-07. These include Cylinder Blocks, Cylinder Heads, Gear Box Housing, etc. To dispense with the need for outsourcing, an Aluminum Foundry with an annual capacity of 3,300 Tones has been established. 2.4.3 Lucknow; Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. The state of art plant is strongly backed by an Engineering Research Centre and Service set-up to support with latest technology and cater to the complexities of automobile manufacturing. Fully Built Vehicle business, which is one of the fast growing areas of our business, is also established in Lucknow. Our plant rolls out commercial vehicles and is specialized in the designing and manufacturing of a range of modern buses which includes Low-floor, Ultra Low-floor, CNG & RE Buses the Lucknow facility also specializes in manufacturing HCBS (High capacity Bus System) buses. In light of Company s aggressive growth plans, we are currently in expansion‟ phase and production at Lucknow would grow many-fold in near future. The expansion shall be in the areas of painting, welding, vehicle assembly & testing and utility services, driven by latest technology. To achieve these plans we invite people who have good Technical Knowledge, seek Challenging Opportunities and have a Drive for Engineering Excellence to come and partner us in our journey. Http:// Page 22
  23. 23. http://www.projects 2.4.4 Uttarakhand; The company has set up a plant for its mini-truck Ace and the passenger carrier Magic (based on the Ace platform) at Pantnagar in Uttarakhand. The plant began commercial production in August 2007. This is the company's fourth plant, after Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger vehicles) and Lucknow (commercial vehicles). The plant is spread over 953 acres, of which 337 acres is occupied by the vendor park. State-of-the-art facilities include weld shops, paint shops, engine and gear box shops and assembly lines. The company has invested over Rs.1000 crores in the plant. Vendors for the vehicle have made additional investments to set up their plants in the vendor park adjoining the plant. The operation has generated about 7500 direct and indirect jobs in the plant, among vendors and service providers in the area. 2.5 Awards  Car Plant Pune bags Safety, Health & Environment Award.  Tata Motors Jamshedpur wins Energy Conservation Award  Tata Motors bags two awards for excellence in IT implementation  Land Rover Discovery 4 named best 4X4 at the 'What Car Awards 2010  Auto critics recognize new generation Tata Motors Cars  Tata Motors has received the prestigious NDTV Profit Business Leadership Award  Tata Motors among India s most Trusted Brand in cars‟  Tata Motors wins award at the Bangkok International Motor Expo  CVBU Pune wins Rajiv Gandhi National Quality Award for 2007  Tata Motors receives Uptime Champion Award 2007  Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL  Tata Motors bags National Award for Excellence in Cost Management  Tata Motors' TRAKIT bags silver award for 'Excellence in Design'  Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality Award  Tata Motors was awarded four prestigious honors, at the 'CNBC TV18- Autocar Auto Awards', and the 'TNS Voice of the Customer Awards'  Tata Motors chosen as India's Most Trusted Brand in Cars Http:// Page 23
  24. 24. http://www.projects  Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.  ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.  Tata Motors receives JRD QV awards for Business Excellence.  'Car Maker of the Year' Award for Tata Motors  Tata Motors is 'Commercial Vehicle Manufacturer of the Year'  TNS Voice of the Customer Award for Indica Diesel.  Tata Motors wins the prestigious 'Corporate Platinum' Award at the India Manufacturing  Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.  Tata Motors CVBU Pune wins National Energy Award  TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES.  Tata Indica and Tata Safari EXi win awards.  Tata Motors-Car plant gets two ISO certifications.  Tata Motors Receives "India's Best Employer" Award From The Employee.  Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute.  Tata Motors receives all India trophy for Top Exporters.  Tata Indigo ad campaign wins Effie award.  Golden Peacock Environment Management Award - 2003.  Tata Engineering was conferred Bharat Gaurav Puraskar.  Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto Awards - 2003  National Best Training Establishment Award  National Award for Successful Commercialization of Indigenous Technology.  National Award for R&D Efforts.  Regional Top Exporter's Trophy.  Best Company Award at Work skills Competition. Http:// Page 24
  25. 25. http://www.projects 2.6 Brief History of Auto Matrix, Hassan (Authorized Dealers for TATA MOTORS) AUTO MATRIX is the authorized dealers and distributors of TATA MOTORS in and around HASSAN and CHICKMANGALUR. This organization is more than 7 years old and regarded amongst the most loyal dealers to TATA MOTORS. It was started by Mr. RAJENDRE KUMAR in the year 2003. Mr. RAJENDRE KUMAR who is very smart businessman marketed TATA PRODUCTS in HASSAN over the years built a very strong and unshakable relationship with TATA motors. AUTO MATRIX is one amongst the most successful and trusted dealer of TATA MOTORS all over Karnataka. AUTO MATRIX is situated in B.M. road, HASSAN. The working hour of the showroom is from to 7 pm apart from this they also have a service station at backside of the showroom. 2.6.1 Advertising Techniques adopted by AUTO MATRIX, Hassan AUTO MATRIX gives first importance to advertising. At frequent intervals, Advertisement appears in newspapers and magazines. Cars like Indigo, Indica and now the Sumo Grandy, launched by the company, AUTO MATRIX advertises with great enthusiasm. AUTO MATRIX often selects print media to advertise their product. By this way it has improved their sales to greater heights. Clarion advertising Company, Sands Advertising Agency, Trishul Advertisement and promodrome Advertising Company designs its advertising campaigns. Besides these promotional activities are also done pasting stickers on cars that are delivered and serviced by the AUTO MATRIX, provision of financial assistance to the customers through link with financial institutions etc. As mentioned above advertisement is major tool. It is accomplished in order to make the public aware of the product and create an impression on the minds of the people. Http:// Page 25
  26. 26. http://www.projects 2.6.2 Services Provided By Auto Matrix, Hassan; AUTO MATRIX, Hassan, uses judicious mix of service with its products offering to meet the customer s requirements. It has recognized the importance of service to‟ exceed customer s expectations, the range of services provided by AUTO MATRIX,‟ Hassan can by broadly classified under the following three heads. A part from these regular services like exchange schemes, they also have in-house spare parts section to add to the convenience of customers obtaining various components at one place. They also provide customized car seat covers and designs. Apart from this they also provide car stereos of customers choice.‟ Now let us discuss about the various services provided by AUTO MATRIX, Hassan  Pre – Sale Service.  After Sales Service.  Free Service.  Paid Service.  Regular Service (Paid Service).  Accidental repairs.  Warranties and running repairs. 2.6.3 Sales Promotion in Auto Matrix, Hassan: AUTO MATRIX, Hassan reveals that this outlet depends much on the sales promotional activities of the parent Company, M/s TATA MOTORS that is found not only efficient but also effective. In addition AUTO MATRIX undertakes separate promotional activities in Hassan and Chickmangalore City. In AUTO MATRIX the sales promotion activity is a combination of consumer sales promotion and dealer sales promotion. The other sales Promotions carried out are, demonstration and instructions. In the showroom, the following activities are performed with a view to provide proper information and adequate exposure to the potential buyers. Http:// Page 26
  27. 27. a. Explanation of Product. b. Explanation of usage and Safety Measures. c. Pre-delivery Service and Demonstration. d. Periodical training on minor Maintenance. e. Explanations about tool kit 2.6.4 Organization structure of AUTO MATRIX Managing director Sales general manager Finance general manager Service general manager Sales manager (senior Sales manager Sales manager Showroom manager UV and SUV) (manager for FEAT) (manager for car) manager Seven Seven Seven Seven executives executives executives executives Workshop Warranty Regular/Floor Spares Bode shop manager manager manager manager manager Workshop team Http:// Page 27
  28. 28. http://www.project 2.7 Products / Services 2.7.1 Tata Indica; More Cars per Car December 1998 saw India's first hatchback car Tata Indica developed indigenously by Tata Motors Ltd. After its launch this car has placed itself at a prominent place in small car market that carries compact but classy looks, roomy interiors and a powerful engine to coup with tough Indian road conditions. Gone through remarkable model revamp Tata Indica has become a hot cake in this segment. Tata Indica car was the epitome of the vision for every Indian that Ratan Tata had. Ease of maneuverability, small-size with large space, comfortable with safety of passengers are the striking features that are accredited to Tata Indica. Since its launch Tata Indica saw number of changes in its technology combined with the state-of-the-art features. Tata Indica has been launched in three upgraded versions as Indica V2 (in year 2002), Indica V2 Turbo (in year 2005) and Indica V2 Xeta (in year 2006). The Indica V2 was the revamped version of Tata Indica. Indica V2 was launched with lots of exciting features like: new front grille, clear lens head & tail lamps, muscled sporty look, designer alloy wheels, refurbished interiors combined with micro processor based engine to deliver superior fuel efficiency. The Indica V2 Turbo was launched with turbo engine to offer turbo charger that make turbo diesel engine more advanced with power output of 68PS@ 4500 rpm. Indica V2 Turbo was launched with lots of new features like: Chrome-plated strip on hood, internally adjustable Outer Rear View Mirror, plush fabric used in interiors, adjustable head rest and rear seat, new electronic instrument cluster, power Steering, power Windows. Http:// Page 28
  29. 29. http://www.projects Price Available Versions Price (Rs.) Tata Indica V2 DLE BSII 3,41,647 Tata Indica V2 DLE BSIII 3,48,821 Tata Indica V2 DLS BSII 3,58,855 Tata Indica V2 DLS BSIII 3,70,112 (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) 2.7.2 Tata Indigo MANZA; Luxury within Range Tata Motors has launched the all new Indigo Manza at a surprising cost of Rs 4.8 lakhs. The car simply shows how effectively Tata Motors has progressed as a car maker. Tata Manza is a new and updated version of Tata's Indigo Vista. A combination of space, features, technology and looks Manza is available at a competitive and surprising price of Rs 4.8 lakhs. The segment of sedans is surely at an all time hot point with Fiat Linea, Honda City, Maruti Suzuki SX4 and the all new Tata Indigo Manza. Sleekly styled and very well built, the new multi-featured Indigo Manza is sure to gear up the sedan car segment in India. Packed with exciting features like Bluetooth Http:// Page 29
  30. 30. connectivity, outdoor temperature sensor, three barreled headlamps and power outlets for charging laptops and other mobile devices Indigo Manza has a centrally mounted MID (Multi Information Display) which is generally available in the higher end vehicles. Other attractive features of Tata Manza like ABS (Antilock Braking System) and Airbags offer a great safety. Fully fabricated (leather as an option) and comfortable seats offer a high degree of comfort. Equipped with the same 1.4L, 1396cc MPFI petrol engine producing 85PS of maximum power as Indigo, Manza is Assured Luxury at Affordable Price. Company Segment USP Tata Motors Limited Sedan Luxury at affordable price. Striking Features Excellent Engine Performance. Ample Space to make driving comfortable. Great Mileage in city traffic. Affordable Price of Rs 4.8 lakhs only. Model Variants Indigo Manza Aqua Saffire Indigo Manza Aura Saffire Indigo Manza Aura (ABS) Saffire Indigo Manza Aura+ Saffire Indigo Manza Aqua Quadrajet Indigo Manza Aura Quadrajet Indigo Manza Aura (ABS) Quadra jet Indigo Manza Aura+ Quadra jet Http:// Page 30
  31. 31. http://www.projects Price Model Variant Price (Rs. in lakhs) Indigo Manza Aqua Saffire 4,80,000 Indigo Manza Aura Saffire 5,15,000 Indigo Manza Aura (ABS) Saffire 5,40,000 Indigo Manza Aura+ Saffire 5,90,000 Indigo Manza Aqua Quadra jet 5,70,000 Indigo Manza Aura Quadra jet 5,99,000 Indigo Manza Aura (ABS) Quadra jet 6,29,000 Indigo Manza Aura+ Quadra jet 6,75,000 (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) 2.7.3 Tata Indigo CS; Class Starts Early The launch of Tata Indigo CS is all set to redefine the current sedan car segment in India. Indigo Compact Sedan (CS) car has been dubbed as world's first sub four meter sedan, packed with the large capacity space, sleek-stylish design, efficient engine technology for both petrol and diesel variant and this world's shortest sedan has been given price tag starting from 4.0 lakhs. Http:// Page 31
  32. 32. http://www.projects Tata Indigo CS (Compact Sedan) car is the all-new entrant into the sedan car segment launched by India's leading auto company Tata Motors Limited. The launch of Tata Indigo CS is an attempt to encash the lowered excise duty benefits for limiting the overall length and engine class in passenger cars. Tata Motors has dubbed the all new Indigo CS as "sub four-meter sedan" (world's shortest sedan car) and packed it with the size of a hatchback and spaciousness of a sedan car. Tata Indigo Compact Sedan car promises to become a complete pack of comfort, convenience and power packed performance. Under the hood of Indigo CS lies a 1.2 liter, 65 PS, MPFI engine for petrol variant and a 1.4 litre TCIC engine for the diesel version. Tata Indigo CS sports number of interior and exterior features that gives it a look that one would like to flaunt. Beige interiors (in petrol variant), new AC facia, reading lamp, sporty steering wheel and the instrument panel. The spaciousness of sedan, ease of handling like a hatchback and power packed performance of Tata Indigo CS comes with a competitive price between Rs. 4.0- 5.0 lakhs. Indigo CS Car is available in four variants of both petrol and diesel and features seven attractive colors. Striking Features New styled Front Grille and front and rear bumper Soft touch finest quality seats Centre Cluster & Air Conditioning Controls Anti-glare Inner Rear View Mirror Sporty Steering Wheel Larger trunk space of 380 liters Independent McPherson struts equipped suspension system Color Options Scarlet Red Sparkling Gold Mica Grey Carbon Black Cosmic Blue Mint white Http:// Page 32
  33. 33. http://www.projects Arctic Silver Price & Variants The price range of Tata Indigo Compact Sedan car start with Rs 3.79 Lakhs. The ex-showroom (in Mumbai) price of various models are given below: Model Variant Price in Rs. Tata Indigo CS GLE 3,72,954.00 Tata Indigo CS GLS 3,91,400 .00 Tata Indigo CS LE TDI 4,11,397.00 Tata Indigo CS LS TDI 5,07,236.00 Tata Indigo CS LS DICOR 5,35,204.00 (Please Note: The prices are based on the close approximation. Please check the latest prices and variant specifications with your dealer) 2.7.4 Tata Indigo Marina; Carry Your World in Style with You Tata Indigo Marina is a Station Wagon Vehicle packed with power and dressed in style with unbelievable performance which would allow you to 'carry your world in style .‟ Fuel efficient and powerful engine, high-end entertainment system, big trunk space and refined suspension are the eye-catching features of Marina. The large size space with Http:// Page 33
  34. 34. http://www.project great comfort and style has transformed Indigo Marina into useful Multi Utility Vehicle with elegance of Sedan. Tata Motors Ltd., a flagship company of Tata Group, with the launch of Tata Indigo Marina created the new set of standards in terms of style, comfort and space. Tata Indigo Marina is the 2nd car model in Indigo series since its launch in December 2002. With innovative design and attractive features, Tata Indigo Marina makes you to carry your world in style and promises big space, big comfort and also big style. Tata Indigo Marina is packed with the luxury of a Sedan and the convenience of a Multi-Utility Vehicle (MUV). Indigo Marina has a innovative design that provides big trunk space of 670 liters that is convertible to 1370 liters, upgraded soft leather seats, rear seat armrest, new instrument cluster, individual LCD screens gas filled shock absorbers, and 14" classy wheels are teamed up for the premium driving experience. Tata Indigo Marina has 05 striking colors and a price tag of Rs. 4.60-5.60 Lakhs. Available for sale at your nearest Tata Motors dealer in both Petrol and Diesel variants, Tata Indigo Marina comes with 1.4 litre high performance 85 PS petrol engine and the highly fuel efficient 62 PS turbo charged diesel engine. Company Segment USP Tata Motors Ltd. Mid Size (C ), Station Wagon segment Stylish and Spacious Striking Features Improved and powerful engine delivering fuel-efficient output. New front fascia and dual beam headlamps. Central arm rest on rear seat and height adjustable driver seat. Individual LCD screens with built-in-video player with MP3 compatibility. Improved interiors include leather wrapped gear shift knob, sporty steering wheel, analog clock and electronic instrument cluster. Big trunk space of 670 later that is convertible to 1370 later. Convenient power socket of 12V DC one at the rear seat and one for front passenger. Three-link independent rear suspension, with gas filled shock absorbers for comfortable riding. Http:// Page 34
  35. 35. http://www.projects Model Variants Tata Indigo Marina GLS - BS III Tata Indigo Marina GLX - BS III Tata Indigo Marina LX - BS III Tata Indigo Marina LS - BS III Tata Indigo Marina LX Dicor - BS III Colors Variants Sunrise Pearl Mint White Carbon Black Arctic Silver Starry Grey Price The all new Tata Indigo Marina has been priced between Rs. 4.60-5.60 Lakhs. (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) Quotes-Unquote’s "We believe that the Indigo Marina will create a new segment in the market. Tata Motors has always endeavored to grow the market by prying open new segments and it will be our efforts to have the Indigo Marina emulate the success of its predecessors in our product portfolio." 2.7.5 Tata Nano; Http:// Page 35
  36. 36. http://www.project Finally the wait is over. World's most low priced car, Tata Nano, with the price tag of Rs. 1 lakhs is all here. Also called People's Car Tata Nano is the realization of a dream, car for the common man, seen by Ratan Tata, Chairman of Tata Group. Looking nice from the outside and promising to provide better from inside, the Tata Nano features are all set to change the modern face of the Indian automobile Industry. The people's car, Tata Nano was finally launched in Mumbai on 23rd March, 2009. "The journey started six years ago when we overtook what looked like just another business... a business to give Indian families an affordable transport means, a small car which was very low in cost. It is to the credit of the team what we have achieved today" said Ratan Tata at the launch of the car. Ratan Tata (Chairman, Tata Group) announced at the launch that the standard model of Tata Nano will have a dealer price of Rs. 100,000 a promise that he has lived up to despite a steep rise in the prices of steel and other input costs. Ratan Tata has fulfilled his promise of delivering the world s cheapest car, Tata Nano which is safe, affordable‟ and fuel efficient at the same time. The initial 1 lakhs customers which would be picked through a computer draw would be promised price protection which means they will be getting the cars as per the promised launch day prices despite any economic conditions in the future. This would surely be a big reprieve for the initial customers. "A promise is a promise", said Ratan Tata. Nano launched by Tata Motors is going to change the face of Indian automotive industry. With this launch India has most definitely marked its presence in the global automotive industry. A lot has been talked about this car and another first has been associated with this car. Usually with the launch of a new product a company goes into a spending spree in terms of marketing of the product. However, Nano managed to get free publicity because of the hype which was associated with every move that it made. Be it the starting controversy over the Singur project or the hype of the launch day which was tracked through daily countdowns on the visual media, the car has been in news for a long time now. Http:// Page 36
  37. 37. http://www.projects Color Options: Nano base: Bright red, ivory white, summer blue. Nano CX: Bright red, Ivory white, Summer blue, Champagne gold, Lunar silver Nano LX: Champagne gold, Lunar silver, Sunshine yellow Price The standard model, the CX and the LX are the 3 variants of the new Tata Nano. The non AC standard version of the car comes with an ex-factory price of Rs 1 lakh and will cost Rs 1.12 lakh at showrooms in Pant Nagar, where the company is making the car. In Delhi, it will cost just over Rs 1.23 lakh (Rs 1.34 lakh in Mumbai). The AC version would be priced at Rs 1.48 lakh in Delhi and Rs 1.6 lakh in Mumbai, while the deluxe version would cost 1.72 lakh in Delhi (Rs 1.85 lakh in Mumbai). The booking amount would range from Rs 95,000 to Rs 1.4 lakh for different versions 2.7.6 Tata Sumo Grande; More Than Meets the Eye Tata Motors, with the Sumo Grande, has come up with its new entrant in the Multi Utility Vehicle segment. The all new Sumo Grande is boasting a completely changed styling, design and power packed features. This MUV is packed with cutting edge engine and transmission technology for easy riding in tough conditions. It has lots of spacious and plush qualities in the interiors that give a comfy experience to all the passengers. Indian auto giant Tata Motors has come up with its all new version of Multi Utility Vehicle (MUV), Sumo with a unique-catchy name of The Sumo Grande, that promises to deliver "more than meets the eye". Casted with the blend of elements that offers the stylish-sporty looks of a Sports Utility Vehicle (SUV) with the comfort- Http:// Page 37
  38. 38. http://www.projects convenience and performance of a family car. The clear lined outlook and the roomy- comfy interiors of the Sumo Grande car is perfectly complimented by the strong performance of latest engine and transmission technology that makes sure that all the passengers get a superb riding experience. Under the hoods of all new Tata Sumo Grande, lies a powerful 2.2 L Direct Injection Common Rail (DICOR) engine that delivers 120 ps of refined power with 250 nm torque. The re-designed front fascia of Sumo Grande looks distinctive, supporting the strong on road presence of this MUV. Sumo Grande offers ample legroom and headroom through its spacious seating, the dual HVAC outlets, sporty-plush centre console, MP3 player with IPod interface are some of the highlighting features of this grand MUV. Launched in three variants of LX, EX and GX, the Tata Sumo Grande is available in six sizzling colors. The ex-showroom price of Sumo Grande starts at Rs. 6.55 lakhs to Rs.7.49 lakhs. Company Segment USP Tata Motors Limited Multi-Utility Vehicle (MUV) A Sporty Family Car. Striking Features Strong muscular looks through revamped front fascia and sporty chrome plated tail lamps Spacious interiors with comfortable seat rows offering ample space for legs, shoulders and head Versatile storing capacity by folding rear seats Separate Ac vents for 2nd and 03rd row seats Attractive centre console and newly styled steering wheel 06 speakers Alpine CD/MP3 player with an Ipod interface Height adjustable seats with tilt steering Small turning radius of 5.25 meter Colors Options Marine Blue Zephyr Green Http:// Page 38
  39. 39. http://www.projects Quartz Black Mineral Red Sunset Orange Arctic Silver Variants & their price Version Price (ex-showroom) Tata Sumo Grande LX Rs. 6,70,046 Tata Sumo Grande EX Rs. 7,08,571 Tata Sumo Grande GX Rs. 7,68,147 (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) 2.7.7 Tata Safari; Reclaim Your Life Reclaim your life with fresh and revamped Tata Safari which is here to rule the Sports Utility Vehicle (SUV) segment with the stunning looks, awesome features and power of new age TCIC, DICOR and MPFI engines with state-of-the-art technology. Tata Safari comes powered with Turbo Charged Inter-cooled (TCIC) Diesel, 115 PS Direct Injection Common Rail (DICOR) Diesel, and 127 PS, Multi-point Fuel Injection (MPFI) Petrol engine to deliver a robust performance. Http:// Page 39
  40. 40. http://www.project The all new Tata Safari with its sporty presence and amazing interiors and exteriors makes the SUV distinctive on Road. Roof -mounted AC, lumbar support seats with rear arm rest, adequate storage space, DVD/MP3 system with dual LCD screens, leather wrapped steering wheel, silver finish console, and body colored trimmings are few luxury and comfort features of Tata Safari apart from advanced safety features like antilock braking system (ABS) and dual airbags as standard fitment. Company Segment USP Tata Motors SUV (Sports Utility Engine Options of TCIC, DICOR and Ltd. Vehicle) MPFI Striking Features New generation 2.2 L Dicor (Direct injection common rail) engine Two Tone Beige Interiors, wood-finish center console and leather upholstery Tubeless Alloy Wheels Electric shift-on-the-fly 4 Wheel Drive mechanism DVD / MP3 System with LCD Screen Height Adjustment In Driver's Seat and electrically adjustable side-view mirrors Power Steering and Power Windows At Front & Rear Dual Air Bag, Anti Locking Braking System (ABS) With EBD. Front Seat Belt Warnings, door open warning Leather Wrapped Steering Wheel New spare wheel cover Model Variants Tata Safari 4x2 LX TCIC Tata Safari Dicor 2.2 VTT Tata Safari MPFI Petrol. Http:// Page 40
  41. 41. http://www.projects 09 Colors options of Tata Safari Light Gold Arctic Silver Quartz Black Passion Red Mountain Green Steel Blue Pearl White Cycus Grey Arctic White Price Model Variants 4 X 2 4 X 4 Safari DICOR 2.2 LX 770,761 N.A. Safari DICOR 2.2 EX 903,030 989,501 Safari DICOR 2.2 GX 988,483 1,079,896 Safari DICOR 2.2 VX 1,088,487 1,179,228 (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) Quotes-Unquote’s "Tata Safari has created a premium position for itself in the Indian market and is the highest selling SUV in the above-Rs. 7 lakh category. The Safari brand grew by 18.5 per cent last fiscal and is growing by 18 per cent this year. It has always defined new standards for luxury and comfort for vehicles in its class. The Tata Safari - petrol is amongst the most powerful SUVs available in the country and offers unmatched content and specifications. It is a perfect blend of technology, performance and safety for its price level." Http:// Page 41
  42. 42. http://www.projects 2.7.8 Fiat Linea; The launch of Linea by Fiat stable in India would add another gem in the crown of sedan cars segment. This upcoming car model from the leading auto maker of Italy would be an attempt to raise the sale bar while facing the challenges posed by its arch rivals like Honda City, Hyundai Verna, Ford Fiesta and Maruti Suzuki SX4. So simply read on to find out more about the fascinating features of Fiat Liena. Eying sharp to churn more bucks out of the sedan car market of India, the Italian car major Fiat Auto is gearing up to launch Linea as a mid-size sedan car, by the end of year 2008. In feel of strong competition by other big auto players like Honda, Ford, Hyundai and Maruti, Fiat auto, with the launch of Fiat Liena would target the small family segment in India. The design team of the Fiat Style centre has put lots of brain to carve out a four-door sedan car to appeal all. To think something big for the said segment, Fiat has come up in India having a joint venture (JV) with Indian auto major Tata Motors. The finely tuned interiors of Fiat Linea represent a blend of elegance and functionality. Inside the Fiat Linea everything has been put so thoughtfully, right from the pedals to steering wheel and from front seats to the rear seats. Sporty instrument console with digital illuminated panel, controls mounted steering wheel, rear seats with head rests, high-class entertainment system and voluminous space for storing needs are enough to make it clear that Fiat Linea lets you feel special when you are inside it. Fiat Linea would be launched in both petrol and diesel version with different engine capacities of 1.3 & 1.4 litre options. Fiat Linea car will come up to rock the Indian roads with ten cool color options and may price somewhere between Rs.7-8 Lakhs. Http:// Page 42
  43. 43. http://www.projects Company Segment USP Fiat India Private Petrol-78PS/115Nm Limited Sedan Diesel - 90PS/200Nm; 120PS/206Nm Striking Features Dressed with dynamic outline having finest chrome outline. Sporty wheel-rims and bumpers. Linea comes packed with fuel-efficient three engine variants. Illuminated digital console panel. Rear seat headrests. Spacious luggage capacity of 500 L. Responsive suspension system for great driving pleasure. Maximum levels of safety of passengers by ABS and EBD. It also comes with side and roof bags. The engine of Fiat Linea comes loaded with FPS (Fire Protection System) that stops the fuel supply to the engine, in case of need. Variants Fiat Linea 1.4 - 8v Fiat Linea 1.4 16v T-Jet Fiat Linea 1.3 Multi jet 16v Price The price of this upcoming luxury sedan car Fiat Linea may be between Rs. 7.0-8.0 Lakhs. (Please Note: The prices are ex-showroom and based on the close approximation. Please check the latest prices and variant specifications with your dealer) Http:// Page 43
  44. 44. http://www.projects Color Options Fiat Linea will be made available for sale with 10 sizzling color options as follows: Cool Jazz Blue Techno Grey Flamenco Red Lullaby Blue Fox-Trot Azure Minimal Grey Rockabilly Black Breakdance Green Ambient White 2.7.9 Fiat Grande Punto: With the grand launch of Fiat Grande Punto in New Delhi, India on 17th June 2009, the joint venture between Fiat Motors (Italy) and Tata Motors (India) is all set to revolutionize the hatchback car segment of India. Fiat Grande Punto, the premium hatchback car is equipped with many features including an impressive design, spacious interiors, world class safety features and the power of advanced and ultra responsive multi jet engine. The hatchback car segment has got its newest entrant in the form of the Fiat Grande Punto. This would be the first product from the joint venture between Italy's leading car maker Fiat Motors and India's trusted car maker Tata Motors. Fiat Grande Punto was launched in New Delhi, India on 17th June, 2009. The Grande Punto is a premium B-segment hatchback car powered with a 1.3-litre multi jet diesel engine that is Http:// Page 44
  45. 45. http://www.project similar to the Common Rail Direct Injection (CRDi) technology capable of generating an output of 75bhp. Fiat Grande Punto boasts of a stunning sporty look with host of value additions in terms of design, comfort, safety, style and space. The interiors of Fiat Grande Punto have quality fabric seats, adjustable driver s seat, roomy boot space, dashboard and instrument‟ panel in catchy design. The larger wheelbase gives Fiat Grande Punto a big presence on the road. The launches of the Fiat Grande Punto will definitely give good competition to cars like the Maruti Suzuki Swift and Hyundai i20. Punto is temptingly priced a few notches below the recently launched Honda Jazz in this segment and this very attractive pricing will surely woo the Indian customers. Company Segment USP Fiat India Private Hatchback Innovative look with practical features for comfort, Limited safety, performance and space Striking Features Designed by world renowned Giorgetto Giugiaro Nicely crafted styling for aerodynamic and sporty presence Catchy and clear instrument panel Comfortable Height adjustable driver seat for better sitting posture Optimum power performance from dialogic transmission Secured by active safety features like: ABS, EBD, ESP incorporating Anti Slip Regulation system Dual front air bags, designed on an energy absorbing body shell Variants Fiat Grande Punto 1.2 Fire Petrol Fiat Grande Punto 1.4 Fire Petrol Fiat Grande Punto 1.3 Multi jet Diesel Http:// Page 45
  46. 46. http://www.projects Price Fiat Grande Punto is priced as follows: Type: Grande Punto Petrol 1.2 Fire Active- Rs. 399,552 1.4 Fire Dynamic Rs. 466,562 1.4 Fire Emotion Rs. 506,573 1.4 Fire Emotion PAC Rs. 561,581 Type: Grande Punto Diesel 1.3 Multi jet Active- Rs. 485,567 1.3 Multi jet Dynamic Rs. 516,574 1.3 Multi jet Emotion Rs. 556,579 1.3 Multi jet Emotion PAC Rs. 611,590 Color Options Exotica Red Minima Grey Medium Grey Electric Blue Bossa Nova White Hip Hop Black 2.8 Marketing Mix Marketing is the process by which a product or service originates and is then priced, promoted, and distributed to consumers. The principal marketing functions involve market research and product development, design, and testing. It is the business activity of presenting products or services in such a way as to make them desirable. One has to consider promotion that is balanced with a suitable product available at a reasonable price, provided at all places to maximize the sale of one s product.‟ Http:// Page 46
  47. 47. http://www.projects MARKETING MIX PRODUCT PRICE PROMOTION PLACE Brand Pricing Strategy Personal Selling Channels of distributions Packaging Pricing & Quality Advertising Physical Distribution Innovations Price & Alterations Public Relations Wholesaler & Retailers Quality Discounts 2.8.1 PRODUCT (Brand, Packaging, Innovations, Quality): a. Brand: Advertising is often used to make consumers aware of a product s special low‟ price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image. The brand image goes far beyond the functional characteristics of the product. The products of Tata Motors have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, and class. All of these meanings have been added to the product by advertising. Consumers frequently buy the product not only for its functional characteristics but also because they want to be identified with the image associated with the brand. Tata Motors have been successful in creating and maintaining a professional brand image. b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly of features. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata Safari Dicor has „Reverse Guide System‟ which includes a weather-proof camera to help the driver while reversing the vehicle. c. Innovations: The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tata s have an industrial experience of over 100‟ years and they are well known with the Psychology of Indian customers, who desire more at less price. This experience has helped them to develop products which fulfill the expectations of Indian consumers. d. Quality Control: Tata Motors have their Quality Control standards and the QC department ensures that the customer does not face any inconveniences of a defective product. Http:// Page 47
  48. 48. http://www.project 2.8.2 PRICE (Pricing Strategy, Alterations, Discounts) a. Pricing Strategy: The prices are fixed keeping in mind a number of factors. As told by Mr. Desai, prices have to be at par with the prices of the competitors. Tata Motors give a relative price advantage as compares to its competitors. The various determinants of price are Market Condition Costs incurred Profit percentage desired by the company. Dealer Profit b. Alterations: The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer. c. Discounts: Discounts are decided by the Co. every month. Any further discounts made from the profits of the dealer. However, the Co. may compensate the dealer for the discounts allowed to a certain extent. 2.8.3 PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations) a. Personal Selling: There is minimal personal selling involved. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. b. Advertising: Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Tata Motors is responsible for the advertising of its products. The dealer does play any role in the advertising. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, and Internet etc. The dealer conducts point-of-purchase displays to advertise the products. The advertisements done by the company help the dealer to capitalize on the market. Http:// Page 48
  49. 49. http://www.project c. Sales Promotion: The purpose of sales promotion is to supplement and coordinate advertising and personal selling; Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. The company conducts intensive sales promotion during festivals such as festive discounts during Diwali. d. Public Relations : Public Relations is a management function that creates, develops, and carries out policies and programs to influence public opinion or public reaction about an idea, a product, or an organization. The company takes serious measures to maintain good public relations. The company follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires 2.8.4 PLACE (Channels of Distribution, Physical Distribution) a. Channels of Distribution: In case of vehicles, dealership method of distribution and sales is generally adopted. Tata Motors have also adopted dealership method of distribution of its products. The dealers purchase products from the company at a negotiated price. The MRP is fixed by the company and the dealer gets a profit within these prices. As the company deals in commercial and passenger vehicles, there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. However, if there is a single dealership appointed, then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively. Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles, in some cases, to the Government. Sometimes, bulk quantities of vehicles are ordered by a Government department or a private company. The sales, distribution and billing of these are looked after by the company itself. b. Physical Distribution: The commercial vehicles are manufactured at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market. Http:// Page 49
  50. 50. http://www.projects 2.9 SWOT analysis of Tata motors Strengths 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.‟ The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick- up targeted at Central and South America. Http:// Page 50
  51. 51. http://www.project Weaknesses 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; Tata 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. Opportunities In the summer of 2008 Tata Motor s announced that it had successfully purchased‟ the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World s luxury car brand have been added to its portfolio of brands, and will‟ undoubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor s Commercial vehicle business in‟ 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low- cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) Http:// Page 51
  52. 52. http://www.projects committee to address potential strategies that will make are operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco- friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. Threats 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 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 aluminum 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 Http:// Page 52
  53. 53. http://www.projects 3.1 Introduction In a business environment characterized by an increasing unhealthy competition, greater complexity, shorter product of life cycle, greater rate of new product failure, product, process and technology obsolescence, increasing debates on privatization. Marketing occupies a central position in business. It is not any has an inherent mechanism of facing the turbulent environment but also goes to a long way in building and maintaining the company image, which is very crucial for the effective functioning of any company. In fact, success or failure of the firm is determined by marketing strategies in the exploitation of the best possible mix if 4 p s viz., product, price, promotion and place.‟ Among the 4 P s of marketing mix, a promotion is of great significance to‟ marketing practitioners. The best effort or best of product would be meaningless or of no use without promotional efforts. If the prospective customer are unaware of the product availability, inability, benefit affordability above all its capability of satisfying consumer needs he would be grouping in the market dominated by many such products. Therefore, in order to survive and grow in the market, and also grow in the market, also retain the brand image and to face cutthroat competition, promotion is a vital tool in the hands of marketer. Advertising is one of the activities of promotional mix. Advertising is a powerful mean of communication and a vital marketing tool. It helps to bridge the gap between underdeveloped and untapped resource and the satisfaction of human wants. In modern business world, no business can survive without advertisement. Advertising generates sales over a period of time through sustained efforts involving, the informed and the target audience, through persuasion, reminding, reassurance, image building, developing brand loyalty, developing an inclination to switch to our products. Advertising is defined as, the printed, written, spoken or pictured representation of a person, product service or movement, openly sponsored by the advertiser and at the expense for the purpose of influencing sales, use, votes or endorsements”. Thus Advertising consist of all the activities involved in presenting to a group of non personal, oral or visual, openly sponsored message regarding a product ,service or an idea. Http:// Page 53
  54. 54. http://www.projects 3.2 Definitions “ The dissemination concerning an idea, service or product to compel action in accordance with the interest of the advertiser” -ADVERTISING AGE “Advertising is the presentation and promotion of the product, service or idea where such presentation and promotion is identified with and paid for the sponsor. -BLAKE “Advertising message are identified with the Advertises either by signature or by oral statement advertising is the commercial transaction involving payments to publishers or broadcasters and others whose media are employed” -Borden “Any paid form of non personal communication of ideas , goods or services by business firms identified in the advertising message intended to lead to a scale immediately or eventually” “ Advertising is causing to know , to remember, to do” -Wood “Advertising is any paid form of non personnel presentation of ideas, goods or services for the purchase of including people. -Weeler 3.3 Evolution and Criteria of Advertising The history of advertising dates back to civilization itself. As much as some 3000 year back papyrus sheet were used in Thebes in Egypt to announce the rewards for the return of runway slaves. In Egypt, criers were used to announce the arrival of trade ships. Around 1500 B.C shopkeepers in Athens were advertising. Largely in the form of signboards and hoardings. In ancient Greece town, criers sold slaves and cattle, made public announcements and chanted advertising rhymes, which must have sounded something s, like today s singing commercials.‟ ‟ Then with the rise of craft economy in Europe and Asia, advertising arrived with a rapid pace on the business area. In fact, spoken words were the most predominant form of advertising till 1450 A.D, the invention of movable type printing press by Johann Http:// Page 54
  55. 55. http://www.projects Guestonoberg, revolutionized advertising and the first printed advertisement of prayer book appeared in England in 1477. The first news paper advertisement gained momentum with the introduction of England s first daily newspaper „London daily gourant in 1702.‟ ‟ The modern market system appeared in the scene, by the sixteenth century, and this tempted the Europeans to expand business around the world. By early eighteenth and mid eighteenth century, in North American colonies of England, many newspapers came to be known as advertisers and carried large number of classified advertisements aimed at small but affluent of readership. In early nineteenth century printer and publishers of newspapers who used to sell advertisements space to procure necessary finances for their survival and growth mostly handled advertising. The concept of mass production and standardization of products by industrialists contributed greatly towards not only in the emergence of consumer markets during mid nineteenth century but also gave rise to modern marketing system. Development of chromolithography, especially in Germany, enabled the use if color picture, which rendered advertisement more eyes catching. In the early twentieth century the appearance of consumer product advertisements with pictorial display has given a new shift in advertising. 3.3.1 Criteria Not every product lends to advertising, Prof Neil h Borden has identified five criteria that serve as guides for management in deciding whether the company should use advertising to increase the demand for the product. They are as follows: The primary demand trend for the product should be favorable, and then only the advertising works best. It cannot successfully sell a product that people do not want, nor can it reverse demand trend. There should be considerable opportunity to differentiate the product. When this condition exists, it is easier to advertise because the company has something to say. A trade association may still advertise products, which are not easy to differentiate by brand. Http:// Page 55
  56. 56. http://www.project The product should have hidden qualities. If a product exhibits everything it has, there is no necessity to advertise. Hence, it must possess certain hidden properties, which could be advertised. Powerful emotional buying motives should exist for the product, and then buying action can be stimulated by appeal to these motives. The company must have sufficient funds to support an advertisement program adequately. 3.4 Main Steps in Building Advertisements There are ten steps that are more or less fundamental. Those are: Get the facts. Statement of purpose Assemble ad materials. Organize ad materials. Word or phrase the key idea. Visualize the elements and sequence. Write the first draft. Pre-check the ad Revise and refine. Measure effects and learn. It is a logical order. It should be followed as closely as the organizational and planning situation allows. 3.5 Advertising Copy The term „copy covers all items appearing in an advertisement .the main purpose‟ of an advertising copy is to constitute AIDA formula (attention, interest, desire and action). The advertising copy has 2 main parts i.e. ., advertising theme or appeal and advertising layout. Advertising theme of appeal: it represent a specific point of view or an idea to be stressed in the advertisement which aims at a basic buying motive, attract the right group of prospects, and to tie in logically with the product and its qualities and be capable of being used in multiple media. Http:// Page 56
  57. 57. http://www.projects Advertising Layout: Advertising layout deals with proper and attractive physical arrangement for the best presentation of the message or sales communication. Advertising layout has the following elements. a) Headline: headline put froths the main theme or appeal in a few words. It should be clear, simple, short and attractive to hold attention of the prospect. b) Illustration: it s a vital demonstration consisting of drawings, cartoons,‟ pictures, photographs, for attracting attention, creating interest and arousing desire. c) Color: Color attracts great attention- attraction power and judicious blending of which can evoke emotional reaction. Red ,green, blue and black are the most popular colors used in advertisement d) Text: Is the advertising massages, which explains and develops the ideas presented in the headlines. 3.6 Copy Testing It is necessary to measure the effect of communication in many ways such as, it is said to be copy testing. Copy testing can be done before or after an ad is printed or broadcasted. That is, it may be: a) Presenting b) Possessing 3.6.1 Presenting: They are 3 major type of presenting. Direct rating- where the advertiser exposes panel to alternatives advertisements and asks them to rate the advertisements. Portfolio tests- where consumers view or listen to a portfolio of advertisement and is asked to recall all the ads and their contents. Their recall level indicates the ability of advertising. Laboratory tests- where equipments are used to measure consumer s‟ physiological reactions towards an ad though which attitudes intentions of beliefs of a consumer are revealed? 3.6.2 Post testing: The 2 popular methods of post-testing are stated below. Http:// Page 57
  58. 58. http://www.project Recall tests – were an advertiser asks people to recall everything they can remember the advertiser and products from the television programs or magazines. Recall scores indicates the ad s power to be noticed and retained.‟ Recognition tests- where recognition scores can be used to assess advertising impact in different segment and to compare the company s ad with‟ competitor s advertising.‟ 3.7 Functions and Objectives of Advertising We may group the various function of advertisement in two: 1. Primary functions 2. Secondary functions 3.7.1 Primary functions: Primary functions of advertisements are as follows To increase sales of the product by securing greater consumption attracting new buyers or introducing new uses for a commodity. Persuasion of dealers to stock the goods is one of the functions of advertisements. It helps the dealers (wholesalers and retailers) to sell the products. Advertising is effectively used to increase the per capita use of the commodity by its constant repetition. The receptiveness of a new product or a new model increases if producer as earned a name as a producer of good quality products. Advertising does this 3.7.2 Secondary functions: Such function includes the following: Adverting encourages the salesmen and lens them moral support in facing a difficult customer. Necessary information is furnished to salesman, dealers and customer about the product. The printed word is manufacturer s guarantee.‟ It creates a feeling among the executives and administrative staff that they are working in a company having public response. Http:// Page 58
  59. 59. http://www.projects The worker of the company of a well advertises goods feel themselves secured. It means steady work and consequent prosperity. There is a feeling in the minds of workers that their jobs are permanent and are likely to be promoted. It helps the company to secure better employees, executives, salesmen and workers 3.8 Objectives The purpose of advertising is nothing but so sell- a product, a service or an ideal the real objectives of advertising is effective communication between producers and consumers. The following are the main objectives of advertisings 3.8.1 Preparing ground for new product: Advertisement may be used for introducing a new product in the market. New product needs introduces because potential customers have never used such product earlier and the advertisement prepares a ground for the new product. Most of the advertisement in cinema s –halls or at radio and television serve this purpose.‟ 3.8.2 Creation of demand: The main objective of the advertisements is to create a favorable climate for maintaining or improving sales mainly in growth and maturity stages of product life cycles. Customers are to be commonly reminded about the product and the brand. It may induce new customers to buy the product by informing them its qualities since it impossible that some of the customer may change their brands. Thus in other words, advertisement may bring new areas and customer to the company s product thereby‟ increasing the company s share in the total market.‟ 3.8.3 Facing the competition: Another important objective of the advertisement is to face the competition. In other words advertising in modern days is undertaken not only to inform about a product, but is used also to maintain and increase the demands of the product by wearing people away from rival products in the market. Under competitive conditions advertisement help to build up brand loyalty and when customers have developed brand loyalty, if becomes difficult for the middlemen to change it. 3.8.4 Creating or enhancing goodwill: Http:// Page 59