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This document provides an overview of the sales and distribution strategies of Tata Motors in India. It discusses Tata Motors' distribution channel and analyzes customer satisfaction through research conducted at a Tata Motors dealership. The author interned at the dealership to understand the automobile industry and Tata Motors' business in particular. Research methods included questionnaires distributed to existing and potential customers to collect data on sales and service.

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Sales and Distribution for Tata Motors and Fiat in India Sales and Distribution for Tata Motors Summer Training Report on Sales and Distribution for Tata Motors Submitted Partial fulfilment for the award of degree of Master of Business Administration Academic Session: 2011-13 Submitted By: Vikas Singal MBA 3rd Semester Roll No:736/MBA/11 P.D.M.COLLEGE OF ENGINEERING Maharshi Dayanand University, Rohtak2011
Sales and Distribution for Tata Motors and Fiat in India DECLARATION
Sales and Distribution for Tata Motors and Fiat in India CERTIFICATE
Sales and Distribution for Tata Motors and Fiat in India ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr.Abhishek Grover , DIRECTOR, Grover Motors, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Grover Motors, for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Mr T.V.Raman of my institute, for his continued guidance and invaluable encouragement.
Sales and Distribution for Tata Motors and Fiat in India Contents Declaration Certificate from Faculty guide Acknowledgement Executive Summary Chapter 1. INTRODUCTION 1.1. Objectives 1.2. Industry Profile 1.3. Company Profile PAGE NO. 7 Chapter 2: Distribution of Tata Motors 34 Chapter 3. Research Methodology 3.1 Types of Research 3.2 Data Collection Procedures Used in my Research 3.3 Data Collection Techniques 44 Chapter 4. Findings and Analysis 47 Chapter 5. Conclusion 5.1 Conclusion and Recommendations 5.2 Learning from the Internship 77 References 80 Annexure (Sample Questionnaire) 82
Sales and Distribution for Tata Motors and Fiat in India EXECUTIVE SUMMARY My Study will be limited to speedometers with reference to Sales and Distribution for Tata Motors in India. To analyze the sales and distribution of TATA motors, I had taken a dealership as a case study. By working in a dealership I came to know about the distribution channel of the company. The main purpose of pursuing my Summer Internship at Tata Motors was to get a better understanding of the Indian Automobile Industry. Also, I wanted to specifically get an overview of Tata Motor‟s business group- the kind of customers it caters to, the attributes which influence the sales of cars; and the strategies which may improve the sales of the same. The research started by conducting a small pilot study on a few respondents- this process easily detects the errors in the questionnaire which may otherwise be overlooked. I applied the tool of Questionnaires to collect data. I conducted the survey on the existing customers of the company towards the sales and service of the vehicles. Consumers, from eclectic age groups, were also surveyed to get a broader picture of their preferences.
Sales and Distribution for Tata Motors and Fiat in India INTRODUCTION 1.1 Objectives  To study the distribution channel of Tata motors.  To conduct sales of cars of Tata Motors.  To analyze the customer's satisfaction by conducting a research.
Sales and Distribution for Tata Motors and Fiat in India 1.2 INDUSTRY PROFILE AUTOMOBILE INDUSTRY IN INDIA In the fast moving world with the biggest countries with huge economies India has managed to be the eleventh in the world for annual production of 2 million units approximately. This sector in India is growing at a very fast rate and it has crossed China in terms of selling the Units. In the matter of population India is the second largest country in the world with a population of 1.1 billion. In this respect it is just next to China. But it has a very small land mass as compared to China. India has become an attraction for car manufacturers around the Globe as a graph of its ownership of car i.e. 7 per 1000 people. Automobile industry in India comprises of 13 million direct and indirect employees. It contributes 3.1% of India‟s GDP (nominal) and the valuation of the industry is about US$ 34 billion. India's motorcycle market with an annual sale of 5 million units is the second largest around the globe. India has Fourth largest commercial vehicle market, Eleventh largest passenger car market, Fifth largest bus & truck market (by volume) around the globe. With this growing pace India by 2016 is expected to be the seventh largest automobile market and by 2030 worlds 3rd largest behind US & China. Late 1890‟s is the time when Automobile was introduced in India but it came into existence only after the independence in 1947. Until 1980‟s Hindustan Motors and some small manufacturers Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly till the time when Maruti Udyog Suzuki came into existance after the death of the great Indian politician Sanjay Gandhi who championed the need for a "people's car". It quickly gained over 50% of the market share. The Maruti 800 became popular because of its low price, high fuel efficiency, reliability and modern features relative to its competition at the time. From the decades in the Indian automotive industry there were only few vehicle models but then also there is a good lead time to get a car after the booking. So with changing
Sales and Distribution for Tata Motors and Fiat in India economy, competition, and urge to grow big we are here with more than 100 Models and every moth with a new model to offer. Keeping in mind the comfort of the people and their choice the models are prepared. Performance of vehicle is increasing day by day, its fuel efficiency and reliability has no match with others around the globe. Inspite of having manufacturing of major foreign automakers based in India our Indian Domestic Automobile Companies are leading in the Market. Tata Motors is the largest commercial vehicle company, Maruti Suzuki is the largest passenger vehicle company & Hero Honda is the largest motorcycle company in India. Mahindra & Mahindra, Ashok Leyland and Bajaj Auto are some more leading automobile manufacturers. Automobile Domestic Sales Trends (Number of Vehicles) Category 2006-07 2008-09 % change Passenger Car 882208 1076408 22.01 Total Passenger Vehicles 1143076 1379698 20.7 Total Commercial Vehicles 351041 467882 33.28 Three Wheelers 359920 403909 12.22 Total Two Wheelers 7052391 7857548 11.41 Grand Total 8906428 10109037 13.5 Source: Society of Indian Automobiles Manufacturers.  Maruti Udyog Ltd, the biggest car maker of the country, selling 2, 93,536 vehicles as against 2,43,211 in the corresponding year last year. having a growth rate of about 20.7 per cent during April-August,2009  Mahindra & Mahindra Ltd's (M&M) cumulative sales with exports were 1,06,094 units compared to 78,144 units in the corresponding period last fiscal during the April-September having a growth rate of about 35.8 per cent  Honda Siel Cars India Ltd. (HSCI), leading manufacturer of premium cars in India, selling 41,638 units against 35,853 units. having a growth of 16.1 % in cumulative sales for the period January to August, 2009.
Sales and Distribution for Tata Motors and Fiat in India  DaimlerChrysler sold 1,681 units in India from January to August, growth of over 22 per cent from a year ago.  Car-maker General Motors India (GM), totally owned subsidiary of General Motors Corporation, reported a 114 % increase in domestic sales during August at 5,817 units against 2,720 units in the same month last year.  Hero Honda crossed the 2 million unit sales mark during the Jan-Aug period.  Motorbike exports from India have grown to 3 to 21 to 321 units in the AprilAugust period this fiscal from 2 to 37 to 103 units in the same period last year. CARS BY PRICE RANGE   Nano Ambassador Fiat Palio  Hyundai Santro, Getz  Chevrolet Opel Corsa  Maruti Zen, Wagon R, Versa, Esteem, Gypsy  Ford Icon & Fiesta  Tata Indica, Indigo XL, Indigo Marina  Chevrolet Swing, Optra Magnum, Tavera  Rs. 5-10 Lakhs Reva  Rs. 3-5 Lakhs   Under Rs. 3 Lakhs Maruti 800, Alto, Omni Hyundai Accent, Elantra  Mahindra Scorpio  Maruti Baleno  Toyota Innova  Tata Safari
Sales and Distribution for Tata Motors and Fiat in India   Mahindra Bolero  Hyundai Sonata Embera  Toyota Corolla  Ford Mondeo & Endeavour  Chevrolet Forester  Skoda Octavia & Combi  Honda Civic  Honda CR-V  Maruti Suzuki Grand Vitara  Terracan & Tucson, Captiva  Mitsubishi Pajero  Audi A4  Opel Vectra  Honda Accord  Mercedes C Class  Rs. 15-30 Lakh Honda City ZX  Rs. 10-15 Lakhs Mitsubishi Lancer, Mitsubishi Cedia Toyota Camry Major Companies List of automobile manufacturers in India Indian companies Force Motors Force Motors was formerly known as Bajaj Tempo Ltd. Founded in 1958, it is located in Akurdi, a Pimpri-Chinchwad neighbourhood of Pune, India. They manufacture three wheelers, multi utility and cross country vehicles, light commercial vehicles, tractors and now heavy commercial vehicles.  Gama, Cruiser
Sales and Distribution for Tata Motors and Fiat in India  Trax, Toofan, Challenger Ashok Leyland Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. For over five decades, Ashok Leyland has been the technology leader in India's commercial vehicle industry, moulding the country's commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. Ashok Leyland has six manufacturing plants - the mother plant at Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at Alwar and Bhandara. From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel engines for industrial, marine and genset applications, Ashok Leyland offers a wide range of products. Hindustan Motors Hindustan Ambassador Hindustan Motors is one of the oldest Indian car manufacturers. It is best known for the Ambassador which has been virtually unchanged for about 30 years. It is still very popular as a taxi and is widely used by Indian politicians. Many people have come to associate India with Ambassador and is a prominent part of the Indian landscape.  Trekker (Discontinued)  Landmaster (Discontinued)  Contessa (Discontinued) - 5th Generation Vauxhall Victor  Ambassador - a version of the 1950s Morris Oxford Mahindra & Mahindra Limited Mahindra Classic The automotive section of Mahindra started off when a first batch of seventy five Utility Vehicles (UVs) was imported in CKD condition from Willys in 1947. It has come a long way, not just manufacturing Jeeps but also agricultural equipment and light trucks.
Sales and Distribution for Tata Motors and Fiat in India  Armada (Discontinued)  Voyager Discontinued)  Bolero  Commander  CL  MaXX  Scorpio  Mahindra and Mahindra Classic This was an open jeep with good off roading capabilities, a 4*4 and 4*2 option, huge headlamps and roof mounted lights. == Maruti Suzuki Maruti 800 Maruti Gypsy Maruti Udyog was formed as a partnership between the Government of India and Suzuki of Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car manufacturer in India and especially dominant in the small car sector. Then it brought out The Maruti 1000, made by Maruti Udyog was the first ever contemporary sedan-type car launched in India. The car (which Suzuki sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs. 3.81 lakh, it was back then the costliest car released in the Indian market. Then the company replaced it with Esteem and from that days on a line of Suzuki cars rolled out in the Indian market.  800  Omni  1000 (Discontinued)  Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)  Alto  Esteem(Discontinued)  Baleno - (Discontinued)  Baleno Altutra - (Discontinued)
Sales and Distribution for Tata Motors and Fiat in India  Gypsy  Swift  SX4  WagonR  Versa  Zen Estilo - First Generation Suzuki MR Wagon  Grand Vitara - First Generation Suzuki Grand Vitara  Eigo Multi-national companies BMW BMW is manufacturer of prestigious sport sedans that are known for their nimble handling. BMW enjoys good brand recognition in India, thanks to Indian movies and the rich who have been importing these cars for decades. It has set up a plant in Chennai, Tamil Nadu, to manufacture cars locally exclusively for the local market with no plans for export. It set up the plant to circumvent high import duties.  3 Series  5 Series  7 Series Fiat Fiat India has struggled in India since its inception. The Fiat Uno was one of the first products to be introduced. The Fiat Palio was later introduced and was initially a big hit with its style and ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency. Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the Fiat Siena to Fiat Petra without much success. It roped in Sachin Tendulkar as one of its brand ambassadors. Even Michael Schumacher appeared in an ad for the Palio. It has entered now into an alliance with Tata Motors to jointly manufacture cars at its plant in Ranjangaon, near Pune. The facility will enable the two companies to make about 200,000 cars per annum, and also house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance will also see
Sales and Distribution for Tata Motors and Fiat in India Tata Motors use Fiat's diesel technology - the 1.3 litre multijet diesel engine - for its own vehicles. The two companies also have a distribution and service partnership.  Uno(Discontinued)  Palio  Palio Stile  Siena(Discontinued)  Siena Weekend (Discontinued)  Petra(Discontinued)  Adventure  Punto  Linea Ford Motors Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a major plant in Tamil Nadu. The first model was the Escort.  Escort (Discontinued) - It was offered with a 1.3 Liter petrol termed Alpha and 1.5 Liter Diesel engine termed Orion, and at a time when the car wars in India had just begun. The diesel version was fancied by many due to the fact that diesel was available at half the price of petrol(gasoline/gas) in India at that time. Among the famous owners of the Ford Escort was Azim Premji who drove a black one for almost eight years until he traded it for a Toyota Corolla. The Ford Escort 1.8 was ranked the highest in the J.D. Power and Associates 1997 Indian Customer Satisfaction Study. It was also voted the Best Quality Car in the J.D. Power India Initial Quality Study.  Ikon - Was launched to phase out the Escort, known for the Rocam engine, available with a choice of petrol and diesel version, the car did well. Ford is known for launching new versions with some minor cosmetic changes every now and then.  Mondeo (Discontinued) - Was Ford's offering to the D segment in India in 2001, was brought in as a CBU from Belgium with Ghia being the only trim version available. It was available with both 2.0L Duratorq diesel and 142 bhp 2.0L petrol
Sales and Distribution for Tata Motors and Fiat in India Duratec engines. It was the first car to be offered with Xenon HID headlamps in India. It is alleged that the Mondeo performed better than the 2.3 L Accord available in India at that time. But buyers stayed away as it was more expensive than the Accord. The diesel version was phased out in 2003.  Endeavour - Sold as the Ford Everest in other parts of Asia and based on the Ranger pickup, it was offered in both 4X4 and 4X2 options but with only a 2.5 L, 4 Cylinder In-line, Turbocharged & Inter cooled Diesel Engine and manual transmission.  Fusion - was launched as an Urban Activity Vehicle available with a 1.6 L , 4 cyl 101 bhp (75 kW/102 PS) engine with 5 speed manual transmission. In 2007 a diesel version was launched which has the same 1.4 L 68 bhp (51 kW/69 PS) engine as the Fiesta.  Fiesta - Launched in November 2005 and was Ford's fifth model in India, and is available in 1.6 L petrol and 1.4 L diesel engines. Bill Ford made a personal visit to launch the car in India. General Motors Chevrolet has been one of the most recognized brands in India for several decades. They were made popular as the vehicle of choice of the heroes in Bollywood movies. The model lineup consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered India with the Opel brand, but the Opel brand was dropped in March 2006 because sales were at an all time low due to high prices and General Motors wanted to focus more on their Chevrolet brand. Since the Chevrolet brand was introduced in India, there have been no new Opel products. GM's Indian operations were originally a JV between Hindustan Motors and GM, with most of GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now wholly owned by GM. Cars from Chevrolet are:  Tavera - Rebadged Isuzu Panther  Forester - (Discontinued) Rebadged First Generation Subaru Forester  Aveo - Second Generation Daewoo Kalos sedan
Sales and Distribution for Tata Motors and Fiat in India  Aveo UV-A - First Generation Daewoo Kalos hatchback  Optra - Rebadged Daewoo Lacetti  SRV - Rebadged Daewoo Lacetti  Spark - Formerly Daewoo Matiz in India  Cruze  Captiva Honda Honda Siel Cars entered India in 1995. It sells 4 cars in India - the City, Civic, Accord, and CR-V. The manufacturing plant of Honda Siel is located in Greater Noida. The model of Accord sold in India is the 2003 model. The most inexpensive car from Honda The City. The most Expensive - The Honda Accord V6.  Accord - It was introduced in India in July 2001. It is sold in three versions Accord VTi-L M/T, Accord VTi-L A/T and Accord V6 A/T. Both the engines, the standard i-4 and V-6 have be de-tuned which produce less power compared to the American models, the I-4 produces 142 bhp (106 kW/144 PS) while the V6 produces 221 bhp (165 kW/224 PS), de-tuned for better fuel efficiency.  City - Was launched in India in December 1997 ,initially offered in two options. A 1.3 liter engine producing 90 bhp (67 kW/91 PS) and a bigger 1.5 liter producing 100 bhp (75 kW/101 PS). Two years later a VTEC option was also offered. All were four cylinder engines. In October 2003 the City underwent a major revamp and is popularly called as New Honda City (NHC). Surprisingly Honda gave the new City less powerful engines and decided to improve the fuel efficiency. The new City features a 1.5 liter engine producing 77 bhp (57 kW/78 PS). It offered more interior space and with bright and refreshing interiors. About two years later, a face lifted version - CITY ZX - was introduced. At the same time, a VTEC engine model too was introduced.  Civic - Was launched in July 2006 in India 6 months after the international debut. The car is the first in this segment in India to offer unprecedented safety features like ABS, EBD as standard. It is also the first in its class to feature reverse swing
Sales and Distribution for Tata Motors and Fiat in India windshield wipers. The only problem with the car with respect to India is its low ground clearance.  CR-V - It was introduced in India along with the Accord. It was and is still offered with a 2.4 liter i-VTEC engine producing 152 bhp (113 kW/154 PS). Hyundai When Hyundai entered India, the brand was virtually unknown in the Indian market. They signed up Bollywood actor Shah Rukh Khan and their excellent advertising campaign made Hyundai a household name and helped it reach the second place behind market leader Maruti Suzuki.  Santro - second generation Hyundai Atos  Accent - second generation Hyundai Accent sedan  Sonata - sold as the Sonata Embera  Verna - third generation Hyundai Accent sedan  Getz - sold as the Getz Prime  Elantra - 3rd generation Hyundai Elantra sedan  Terracan (discontinued)  Tucson  i10 - brand new small car, global launch in India in 2007.  I20 Renault-Nissan  Logan In partnership with Mahindra and Mahindra Mercedes-Benz  M-Class  S-Class  E-Class  C-Class Mercedes-Benz has had to cater to the ever growning luxury segment in India, in a much better fashion now, especially after the arrival of the other luxury German manufacturers.
Sales and Distribution for Tata Motors and Fiat in India Now, Mercedes-Benz cars are launched in India soon after the worldwide launch and homologation as opposed to earlier, when Mercedes-Benz had monopolized the niche Indian market. Mitsubishi Motors  Lancer - Sixth Generation Mitsubishi Lancer  Cedia - Seventh Generation Mitsubishi Lancer  Pajero - Second Generation Mitsubishi Pajero  Montero - Third Generation Mitsubishi Pajero Škoda Škoda is an important car manufacturer of India. It recently launched the Laura, the Octavia still continues to exist. Skoda also offers the Superb in India but it's not too popular.  Octavia  Superb  Laura  Fabia Toyota Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to make way for the Toyota Innova, which was launched in India in 2005. The most expensive car from Toyota is a very powerful SUV - The Land Cruiser Prado. Toyota Kirloskar Motors LTD is a joint venture between Toyota Motor Corporation and the Kirloskar Group.  Qualis (Discontinued) - 3rd Generation Toyota Kijang  Camry - 6th Generation Toyota Camry  Corolla - 9th Generation Toyota Corolla  Innova  Land Cruiser Prado - 3rd Generation Toyota Prado SWOT STRENGTHS  Largest production base about cars per day
Sales and Distribution for Tata Motors and Fiat in India  Different model exported to different country.  Well established networking and distribution system in 30 countries of the world.  Market share of 30% in the Indian car industry.  Good technical support and service abroad.  Produces the most fuel efficient vehicles.  Highly efficient and technical staff abroad.  Good customer support.  Good infrastructure in Europe. WEAKNESS  Low emphasis on research and development  Technology in automobile is out dated. OPPORTUNITIES  Largest market in Europe and also good market in India. THREATS  Competition from the automobile industry of the world.
Sales and Distribution for Tata Motors and Fiat in India 1.3 COMPANY PROFILE a. Review of literature on the company Tata Motors Tata Motors Limited (formerly known as TELCO (TATA Engineering and Locomotive Company), (NYSE: TTM) - is India's largest passenger automobile and commercial vehicle manufacturing company. It is a part of the Tata Group, and has its headquarters in Mumbai, Maharashtra. One of the world's largest manufacturers of commercial vehicles and known for its hatchback passenger vehicle Tata Indica, Tata Motors has its manufacturing base in Jamshedpur, Lucknow, Pune and Singur. The OICA ranked it as the world's 21st largest vehicle manufacturer, based on figures for 2006.[1] Tata Motors was established in 1945, when the company began making trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during 2001-2006 which was among the top 10 corporate profits in India. In 2004 it also bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in
Sales and Distribution for Tata Motors and Fiat in India South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. On 10 January 2008, Tata Motors launched their much awaited Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati Maidan, Delhi. Tata Motors commences distribution of Fiat Cars across India Tata Motors and Fiat India Private Limited announced the commencement of the new Tata-Fiat dealer network to sell both Tata and Fiat branded cars, along with service and sales of spare parts, in 11 cities across India. The Tata-Fiat dealer network comprises 25 existing Tata Motors Passenger Vehicles dealers and 3 existing Fiat India dealers. The 28 Tata-Fiat dealers will sell the Fiat Palio (1.2 EL PS, 1.2 ELX, 1.6 Sports) and the Fiat Adventure (1.6 Sports), and all Tata Motors Passenger Vehicles - the Tata Indica, the Tata Indigo, the Tata Indigo Marina, the Tata Sumo and the Tata Safari. The beginning of operations of the Tata-Fiat dealer network follows the agreement, announced by the Fiat Group and Tata Motors on January 13, 2006, to cooperate on dealer network sharing. The execution of the distribution arrangement is the first initiative post the signature of the Memorandum of Understanding signed between the Fiat Group and Tata Motors in September 2005. Discussions are on to explore other areas of co-operation, on which specific announcements can be expected once their feasibility is established. Commenting on the commencement of the Tata-Fiat dealer network, Mr. Rajiv Dube, Sr. Vice-President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata Motors, said, “Tata Motors is delighted to be partnering Fiat India in bringing a larger portfolio of products under a single roof at our joint dealerships. Between the Tata and Fiat brands, the company is in a position to offer one of the widest product offerings in the Indian market with the promise of several exciting options to come.” Mr. Giovanni de Filippis, Managing Director of Fiat India Private Limited, said, “The coming together of Tata and Fiat through the dealer network sharing signifies better service, after sales support and more convenience to Fiat customers. Our customers have always been delighted with the superior build quality of our cars. The after sales support
Sales and Distribution for Tata Motors and Fiat in India that comes with the Tata trust will complement this, and Fiat is confident of serving its customers better.” Existing Fiat dealers will continue to retail the full range of Fiat offerings, including the Fiat Petra. About Fiat One of the pioneer companies in the automobile industry, Fiat has produced more than 85 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy. Some of them have represented milestones in the automotive industry. The Fiat Group‟s Automobiles Sector operates world-wide with the following brands: Fiat, celebrated for value, economy, and innovation and whose mass produced cars are distributed over almost the entire price class spectrum; Lancia (acquired in 1969) means prestige cars noted for their elegant styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and luxury vehicles of style and distinction; Maserati (acquired in 1992) represents a landmark in the history of the automobile; Ferrari (acquired in 1969), well renowned for unsurpassed design, performance, and luxury, is a legendary automobile that imparts special cachet to its owner. Fiat India Private Limited, with its renewed brand strategy for the Indian market, is focused on the premium end of the B & C category in the growing automobile sector.
Sales and Distribution for Tata Motors and Fiat in India Fiat Adventure Sport is the latest offering targeted at the new generation of customers who enthusiastically seek out the latest trends in style, safety, engine and performance. Fiat‟s superiority in design and technology has been re-emphasized from the fact that its 1.3-multi jet has been chosen as the “Engine of the Year 2005” in the 1 to 1.4 litres by the Jury of the “International Engine of the Year” award.
Sales and Distribution for Tata Motors and Fiat in India b. Historical analysis Background Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently headed by Ratan Tata. The company has the workforce of 24000 employees working in its four plants and other regional and zonal offices across the country. Tata Motors' range of passenger cars is still not comprehensive by international standards. In commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic heavy commercial market. The company is trying to modernise its range of commercial vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006. Time line and milestones Tata Motors launches its first truck in collaboration with Mercedes-Benz 1960-1986 Tata Motors is the 2nd largest commercial vehicle maker in India. World over it is the world's fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in 1960 with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in Pune. It took five years for the company to begin the commercial
Sales and Distribution for Tata Motors and Fiat in India production of heavy commercial Vehicles. Considering the road infrastructure of the country which does not support heavy vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986. 1987-1996 Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines. 1997-2006 In 2000, it launched compressed natural gas (CNG) buses and also filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium tonnage loads. Post 2000, the company introduced a variety of new models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers' requiring one and same vehicle for commercial as well as personal use. Tata Novus In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:  Company‟s global plans to reduce domestic exposure The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.
Sales and Distribution for Tata Motors and Fiat in India  To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus). Joint ventures In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. A venture with British carmaker MG Rover saw the launch of the CityRover in 2003. This car was based on the Tata Indica and built alongside it in India, but sales were not strong and production finished in April 2005 when MG Rover went bankrupt. MG Rover was purchased by Nanjing Automobile of China three months later, but when car production resumed in 2007, the City Rover was not part of the production plans. Tata Ace The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that Ace had changed the dynamics of the light commercial vehicle (LCV) market in India by creating a new market segment termed the SCV segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, since the launch of Ace, LCV sales of Tata Motors had
Sales and Distribution for Tata Motors and Fiat in India grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries. [3] By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Autoline In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a Briggs & Stratton emissions test) to express any formal interest in the turbulenceboosting cylinder head grooves invented by Somender Singh (Mysore). 2007 Tata Indigo Tata Motors, through its joint venture with Fiat, gained access to Fiat‟s diesel engine technology and is likely to gain access to the latter‟s strong overseas distribution network for its passenger cars. Tata Motors is looking to extend this relationship to other segments like pick-ups and MHCVs. The company also plans to expand its global footprint with the launch of „Global Truck‟ and „Global Pick-up‟ in domestic and international markets by 2007-08. Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. The launch of the global truck will mark the entry of the company into developed markets like Europe and the United States. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo‟s design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailand‟s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will hold a 70% stake. The joint venture will set up a plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the second largest pick-up market in the world, and in other regional markets. The joint venture product is likely to be a part of Tata Motors‟ „Global pick-up‟ plans.
Sales and Distribution for Tata Motors and Fiat in India 2008 onwards On January 3rd, 2008, The Hindu Business Line reported that Ford Motor Company (US) named Tata Motors the "preferred bidder for Ford's British marquees Jaguar and Land Rover ... but a final decision for the sale was yet to be taken". Auto policy of Government of India (GOI) envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction which will lead to increased sales for Tata motors Commercial vehicle division. Effect of Government Policy on Tata Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years. Following factors have led to growth in sales:  The cut in excise duty that enabled manufacturers like Tata Motors to reduce prices  The attractive financing offers and freebies enabled by low interest rate policies by Government  the need to transport higher volumes of agricultural and industrial goods  Low interest rates Tata Xover New auto policy considered by Government of India last announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least $50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India.
Sales and Distribution for Tata Motors and Fiat in India The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively Global competition Tata Motors have some distinct advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. India is an excellent source for IT based engineering solution for products & process Integration. There are strong supporting industries i.e. auto component industry has world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry i.e. Incentive for R&D. c. SWOT SWOT Analysis - Tata Motors Limited The company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limited is the largest car producer in India. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people. Strengths  The internationalisation 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
Sales and Distribution for Tata Motors and Fiat in India 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 pickup targeted at Central and South America. 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 (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?  One weakness which is often not recognised 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 (see opportunities and strengths). 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.
Sales and Distribution for Tata Motors and Fiat in India  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) committee to address potential strategies that will make is operations more sustainable.  The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly 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 globalises 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
Sales and Distribution for Tata Motors and Fiat in India 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 aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.
Sales and Distribution for Tata Motors and Fiat in India 2 Distribution Strategy/ Channels of the Tata Motors and Fiat in India Distribution of the product Distribution Method Distribution always takes place through a cycle but it is different with the products. There are several steps which complete the entire cycle. It usually starts with manufacturer then to distributor and then finally reaches in the hand of consumer. This is the main cycle which is used globally. Retail may takes place before it reaches to the consumer. MANUFACTURER – DISTRIBUTOR – CONSUMER 1st distribution channel 1. In this type of channel the company uses its sales representatives to deal with the dealers directly. The dealers place the order through the sales representatives who visit them periodically, and the products are delivered directly from the company. Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showrooms. 2nd distribution channel 2. In this channel of distribution the company appoints distributors on the basis of District/ Population /No of Dealers to be handled by one distributor. The area of operation and its potential is also taken into consideration. Some of the companies make the distributor totally responsible from appointing the dealers to providing after sales service.
Sales and Distribution for Tata Motors and Fiat in India 3rd distribution channel 3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The company appoints distributors to deal with small dealers who order small quantities. With the dealers who have good potential and sales the company deals directly. 4th distribution channel 4. In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.
Sales and Distribution for Tata Motors and Fiat in India DISTRIBUTION NETWORK TATA MOTORS TATA MOTORS TIER I VOLUME RESELLE rR TIER I Distributors System Integrators Own sales force Value Resellers Resellers CUSTOMER
Sales and Distribution for Tata Motors and Fiat in India CHANNEL STRUCTURE Scenario 1 Scenario 2 Company‟s warehouse Customer (Placing Order (Direct billing) Directly) Customer To save the consumer from paying extra amount in the form of taxes and duties a consumer can directly place an order with the Tata Motors warehouse is a pictorial representation of the same, also there maybe a case where all the 4 or any one of the national Dealers have warehouses in Singapore and consumer places order with these distributor then in that case these distributors will place the order to Tata Motors which will have direct billing with the distributors and distributors will have direct billing with the consumer. How do the finished products of your company move from your end to consumer’s end? CONSUMER RESELLER In this distribution network a customer with the small requirement reaches the reseller who buys the product from the big distributors like Ingram, Redington,Tech pacific and iris. How the finished products moves from Tata Motors end to consumer’s end: CONSUMER RESELLER
Sales and Distribution for Tata Motors and Fiat in India In this distribution network a customer with the small requirement reaches the reseller who buys the product from the big distributors like Ingram, Redington, Tech pacific and iris. SALES FORCE VALUE RESELLER BUSINESS Tata Motors This model is drawn to show that for named accounts or big business opportunities it is the companies‟ own sales force and system integrators (value resellers), which hunts down the prospective business. Distribution Channels Channel Structure 1. Outside Pune Tata Motor Organization C&F Distributer Retailer Consumer
Sales and Distribution for Tata Motors and Fiat in India 2. There are 17 C&F and 50 distributors who directly deal with Tata Motor. Functions performed by different channel member 1. The main functions of different channel members are to supply goods, to achieve targets and to increase sales. 2. One of the main functions of C&F is to achieve the targets assigned to them. They are responsible for all the activities of their areas. 3. The sale of other goods including the sale of its entire outlet is around 150 crores. Selection of Channel members: Channels members are selected if the following facilities are available:1. Godown Facilities 2. Experience sale persons. 3. Van, truck, three-wheelers for transportation. 4. Registered office. 5. Proper computer facility of maintaining accounts. 6. Financially strong. Financial terms and conditions Tata Motor takes the full payment in advance from the distributor and C&F. Most probably it takes Cheque if it is local payment and Demand Drafts if it is central payment. From some distributors Tata Motor also take cash also but always try to avoid it. No credit facilities are given to any distributor or C&F. Tata Motor keep some blank cheques from some distributor and C&F even before taking the order and use the cheque after delivering the goods. Distributor and C&F mostly sale goods on credit basis which varies from one to another. Tata Motor give 6-7% discount to C&F and distributor. No margin is given to them. But they give margin of 10-12% to retailers. Tata Motor is responsible if any goods spoiled or leak on the way in its transport. Tata Motor also give 1-2% discount that takes responsibility of spoiled goods. Mainly these options are given to those who are very far from Raipur and occurred heavy expense of transport to return back the goods. To promote sale Tata Motor give extra discount of 2-3 % where the sale is low.
Sales and Distribution for Tata Motors and Fiat in India Order processing Sale persons of C&F and distributors go to the retailers of their areas and bring the order daily. After that they give order in the Corporate Office of Tata Motor in Raipur to the general manager. From corporate office general manager give order in the factory. the order is ready to deliver and confirming from the corporate office, the goods are delivered in the trucks. Order within Raipur and the places near Raipur delivered within 24 hours. Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours. Every distributor and C&F has a fixed day in a week to give order. Warehousing Tata Motor has its own warehouse, which is manage by its own staff. The order of Tata Motor is delivered by truck. Tata Motors pay expenses for transportation from which the Tata Motor deals directly. Sales functioning: Factors taken into account while assigning targets and territories  Population of the area.  Income of the consumers in that area.  Sales during festival seasons.  Area cover. Targets Targets are decided by the owner of the Tata Motor for every distributor and C&F. Every year targets are increased by 10-15%. All the Distributor and C&F have to achieve minimum 90 % of its targets monthly and remaining has to adjust with the next month target. There is a meeting held every month of C&F and distributors with the General Manager of Tata Motor where they find reasons for not achieving the targets and how they overcome by this problem. In this meeting extra benefits are also given for achieving the targets. Responsibilities of the sales person  To supply goods.
Sales and Distribution for Tata Motors and Fiat in India  To make new customers.  To bring the order from retailers of their area.  To promote Tata Motor Tata Car.  To report about the sale. Performance Appraisal The manager on the targets basis checks the performance of the sales person. The performance appraisal is check on monthly basis. It is check as regard to achieve target. The sales persons give daily report to the manager and on that basis the performance is checked and new target is assigned. Functions performed by different channel member  The main functions of different channel members are to supply goods and give monthly report in the organization.  The channel members also supply goods in the outlets of the Tata Motor India.  They frequently visit outlet of Tata Motor India within Raipur and outside Raipur to check the sales and whether the target is achieving or not.  They also promote Tata Motor India Tata Car.  The main role of showroom is to supply goods to the area that are assign to them.  They are responsible for achieving the target assign to them. Selection of Channel members: Channels members are selected if the following facilities are available: Financially strong.  Transport facilities.  Registered office.  Godown Facilities. Selection of channel member for the Franchise  Asked around 1.5 crore for franchise  Space required – 12000 Sq feet  Preference given in Mall
Sales and Distribution for Tata Motors and Fiat in India  Transport Facilities  Godown available. Financial terms:  In Raipur the Sales of Tata Motor India is done mainly on credit basis. The credit time is not same for the entire distributor. The Finance department of the company decides the credit period of the Distributor after consulting by sale manager.  Outside Raipur the payment is received at the time of delivered of goods. Maximum 15 days allowed paying the payment.  Extra benefit of 1-2% given to distributors who have achieved their annual target. Order processing  From the main office the order is passed in the factory where production manager note down the order and report back to the office when the order is ready.  Order within Raipur and the places delivered within 24 hours.  Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours. Warehousing:Tata Motor India has its own warehouse, which is manage by its own staff. Sales Distributions Factors taken into account while assigning targets and territories  Targets achieve last year.  Area covered by the Distributors.  Sale made during Festivals seasons.  Locations (for outlets). Targets The sales manager decides targets of the distributors. There is an increase in target of 510% annually both for distributor. The targets of both are checked quarterly by the sales manager and if the target are not seen to be achieve then Tata Motor India sent their own sales person and try to increase the sales. Responsibilities of the sales person
Sales and Distribution for Tata Motors and Fiat in India  To supply goods to distributors and in outlets.  To make new customers.  To bring the order from retailers of their area.  To promote Tata Motor India Tata Car.  To report about the sale and steps taken to increase the sale. Performance Appraisal The sales manager checks the performance of the sales person on target basis and the area covered. The performance appraisal is check on quarterly basis and on that basis there Sales Manager assigns new target. Comparison of Sales and distribution in Tata Motor and Tata Motor India  In the distribution channels both the organization have same distribution channel. But in other parts of the country Tata Motor distribute the Tata Car through C&f and Tata Motor India distribute through Super. But the main functions of both are more or less same.  Tata Motor doesn‟t give franchise but Tata Motor India does and offer around 1-2 crores for that.  Tata Motor take the payment in advance but Tata Motor India takes payment at the time of delivering of the goods and also gives credit to some dealers.  Both have their own warehouses, which are manage by their own staff.  Tata Motor increases the annual target of Distributor and C&f by 10-15% whereas Tata Motor India increases by 5 – 10%.  The owner of Tata Motor checks the annual target of all the distributors and C&F whereas in Tata Motor India Sales manager checks it.  The performance of the Sales person is check on monthly basis in Tata Motor whereas on quarterly basis in Tata Motor India.
Sales and Distribution for Tata Motors and Fiat in India Research Methodology 3.1 Types of research Based on the objectives of the study, there are two types of Research:  Exploratory Research- Exploratory research is conducted when one is seeking insights into the general nature of a situation, the possible decision alternatives, and the relevant variables that need to be considered. While conducting my study, I used exploratory research, which was flexible and was aimed at identifying all the attributes that provides satisfaction to customers before and after buying a vehicle. I undertook an intensive review of the automobile industry in India, and screened some issues which I as a researcher felt needed more clarification or study.  Descriptive research- My exploratory research conducted brought out a host of factors which affect the customer buying attitude. These factors were then filtered to form a set of the most important alternatives, which might affect a consumer‟s and a retailer‟s decision regarding the purchase of vehicle and which brand they prefer. The purpose was to find an accurate snapshot of the market environment of automobiles. 3.2 Data collection procedure used in my research : Pilot Study After constructing the questionnaire, the pilot survey was conducted among 6 individuals from the sales force of the company to find out the errors, if any.
Sales and Distribution for Tata Motors and Fiat in India Questionnaire The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is its reliance on verbal responses to questions, written or oral. The researchers found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researchers to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. The questionnaires were personally administered. As far as possible, the questionnaires were filled by me and not given to the respondents. Field work Field work is a general descriptive term for the collection of raw data direct from the consumers, as opposed to secondary research. It plays an important role in collecting the data. My sample size was 157. In my research, I had to take the feedback from the existing customers of Tata Motors to know about their satisfaction level and the areas in which the company was lagging. Some important points which I kept in mind while doing the fieldwork Making the respondents comfortable before questioning them by introducing ourselves as students of Amity Business School and ensuring the respondent that all information collected is only for academic purpose and will be kept absolutely confidential.  Ensuring that we fill the questionnaires ourselves.  Not leading a person into any preconceived notion.  Not influencing the respondents‟ answers in any way/form.  Using simple language, so that the technical language does not intimidate the respondent.
Sales and Distribution for Tata Motors and Fiat in India 3.3 Data collection techniques Primary data  Pilot Study  Questionnaire Secondary data It refers to the already existing data. I collected them by following methods –  Internet  Books  Published Articles  Journals  Newspaper Articles Data Interpretation Tools Following software‟s has been used during analysis and compiling of data.  SPSS Software  Microsoft Excel  Microsoft Word
Sales and Distribution for Tata Motors and Fiat in India 4. FINDINGS AND ANALYSIS Q 1) Which of the following best describes your line of work? Cumulative Frequency Valid Percent Valid Percent Percent services 36 22.9 22.9 22.9 business 66 42.0 42.0 65.0 student 27 17.2 17.2 82.2 Taxi services 28 17.8 17.8 100.0 157 100.0 100.0 Total
Sales and Distribution for Tata Motors and Fiat in India From this we interpret that most of the customers in that area are business people followed by service class. The housewives do not come to the showroom for the service or purchase of cars. Q2) What parameters do you seek in a car before buying Cumulative Frequency Valid Percent Valid Percent Percent brand popularity 19 12.1 12.1 12.1 Performance 69 43.9 43.9 56.1 looks & style 69 43.9 43.9 100.0 157 100.0 100.0 Total
Sales and Distribution for Tata Motors and Fiat in India The customers look for performance and looks& style in a car before purchasing it. Brand name does not play a vital rule in it. Q3) how long have you been associated with tata motors Frequency Valid Percent Valid Percent Cumulative Percent 0-1 18 11.5 11.5 11.5 1-3 54 34.4 34.4 45.9 3-5 66 42.0 42.0 87.9 more than 5 19 12.1 12.1 100.0 157 100.0 100.0 Total Q4) Which company's car do you possess Frequency Valid Percent Valid Percent Cumulative Percent Tata 106 67.5 67.5 67.5 Fiat 51 32.5 32.5 100.0 Total 157 100.0 100.0 Most of the customers prefer buying Tata cars over Fiat .
Sales and Distribution for Tata Motors and Fiat in India Q 5) If rebuying would you select Tata of Fiat Frequency Valid Percent Valid Percent Cumulative Percent Yes 127 80.9 80.9 80.9 No 30 19.1 19.1 100.0 157 100.0 100.0 Total The customers are satisfied with their cars . this is the reason they can rebuy this company‟s car . Q 6) What parameter important for rebuying Frequency Valid Percent Valid Percent Cumulative Percent post sales service 43 27.4 27.4 27.4 Mileage 68 43.3 43.3 70.7 maintenance cost 46 29.3 29.3 100.0 157 100.0 100.0 Total Of all the customers of TATA motors , most of them consider mileage of the car as an important parameter for rebuying decision.
Sales and Distribution for Tata Motors and Fiat in India Q7a) rate tata motors on following parameter knowledgeable sales person Frequency Valid Percent Valid Percent Cumulative Percent 2 3 1.9 1.9 1.9 3 33 21.0 21.0 22.9 4 108 68.8 68.8 91.7 5 13 8.3 8.3 100.0 157 100.0 100.0 Total The salesperson at the company are rated fairly knowledgeable. Q7 b) employees spend enough time with you before sales Frequency Valid Percent Valid Percent Cumulative Percent 3 24 15.3 15.3 15.3 4 121 77.1 77.1 92.4 5 12 7.6 7.6 100.0 157 100.0 100.0 Total The customers feel that the employees spend sufficient time before the sales
Sales and Distribution for Tata Motors and Fiat in India Q7b) employees spend enough time with you after sales Frequency Valid Percent Valid Percent Cumulative Percent 2 6 3.8 3.8 3.8 3 27 17.2 17.2 21.0 4 115 73.2 73.2 94.3 5 9 5.7 5.7 100.0 157 100.0 100.0 Total The customers also feel that the employees spend good enough time even after sales is conducted. Q7 c) Spare parts availability Frequency Valid Percent Valid Percent Cumulative Percent 2 15 9.6 9.6 9.6 3 39 24.8 24.8 34.4 4 84 53.5 53.5 87.9 5 19 12.1 12.1 100.0 157 100.0 100.0 Total
Sales and Distribution for Tata Motors and Fiat in India The customer has a mixed opinion to the availability of the spare parts at the service center .But still the majority has a positive view to it that the spare parts are readily available. Q7d) Is the Vehicle in good condition at the time of delivery Frequency Valid Percent Valid Percent Cumulative Percent 3 27 17.2 17.2 17.2 4 109 69.4 69.4 86.6 5 21 13.4 13.4 100.0 157 100.0 100.0 Total The vehicle delivered at the time of ownership and after sales is presented in good condition. Representation of anything is an important feature. It leaves a positive impression on the customers. Q7e) Are the prices affordable Frequency Valid Percent Valid Percent Cumulative Percent 3 27 17.2 17.2 17.2 4 106 67.5 67.5 84.7 5 24 15.3 15.3 100.0 157 100.0 100.0 Total
Sales and Distribution for Tata Motors and Fiat in India The prices of the service, spare parts are rendered affordable by the customers. It is an important parameter because all the other companies charge high values on spare parts. The customers become hesitant in getting their cars serviced at the authorized service center. They rather look for cheaper options elsewhere. Q7f) Are there any attractive discounts offered Frequency Valid Percent Valid Percent Cumulative Percent 2 21 13.4 13.4 13.4 3 124 79.0 79.0 92.4 4 9 5.7 5.7 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total This analysis states that there are less attractive discounts offered by the company. This happens in a condition when a company is following low pricing strategy. The company has not much scope to offer discounts. This sometimes can even go against you. There is tendency among people to cherish the discounts that is offered to them. But in the long run the strategy is beneficial. Q7g) Is the décor of the waiting area pleasing Frequency Valid Percent Valid Percent Cumulative Percent 2 51 32.5 32.5 32.5 3 88 56.1 56.1 88.5 4 15 9.6 9.6 98.1 5 3 1.9 1.9 100.0
Sales and Distribution for Tata Motors and Fiat in India Is the décor of the waiting area pleasing Frequency Valid Percent Valid Percent Cumulative Percent 2 51 32.5 32.5 32.5 3 88 56.1 56.1 88.5 4 15 9.6 9.6 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total This is the point that the company should improve on. The customers perceive the décor of the waiting area not up to the standards. The company should give a serious thought on improving this .After giving the car for service the customers wait for their cars in the waiting lounge. Q7h) Is post sale follow ups done regularly Frequency Valid Percent Valid Percent Cumulative Percent 1 3 1.9 1.9 1.9 2 9 5.7 5.7 7.6 3 45 28.7 28.7 36.3 4 97 61.8 61.8 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total Post sales follow up is done on regular basis as seen from the analysis Q7i) Are the complaints responded quickly
Sales and Distribution for Tata Motors and Fiat in India Cumulative Frequency Valid Percent Valid Percent Percent 1 9 5.7 5.7 5.7 2 6 3.8 3.8 9.6 3 34 21.7 21.7 31.2 4 93 59.2 59.2 90.4 5 15 9.6 9.6 100.0 157 100.0 100.0 Total The complaints are duly attended and responded quickly by the employees. The mean value of the sample is 3.63 which is above average . Q7 j) Is the service at Tata Motors excellent Cumulative Frequency Valid Percent Valid Percent Percent 1 3 1.9 1.9 1.9 2 9 5.7 5.7 7.6 3 27 17.2 17.2 24.8 4 103 65.6 65.6 90.4 5 15 9.6 9.6 100.0 157 100.0 100.0 Total When the vehicle is given for servicing, the customers feel that their vehicles have been properly taken care of. All the complaints have been looked after. The mean value comes to be 3.75 Q7k)
Sales and Distribution for Tata Motors and Fiat in India Are all the commitments fulfilled Cumulative Frequency Valid Percent Valid Percent Percent 1 6 3.8 3.8 3.8 2 12 7.6 7.6 11.5 3 45 28.7 28.7 40.1 4 70 44.6 44.6 84.7 5 24 15.3 15.3 100.0 157 100.0 100.0 Total The mean value is 3.6. Majority of the customers perceive that the commitments by the company are fulfilled. Q7 l) Do you find the car value for money Cumulative Frequency Valid Percent Valid Percent Percent 2 6 3.8 3.8 3.8 3 24 15.3 15.3 19.1 4 97 61.8 61.8 80.9 5 30 19.1 19.1 100.0 157 100.0 100.0 Total The customers‟ satisfaction is perceived by the parameter whether they find their car value for money. If this is not the case then the customer is dissatisfied and does not consider the car for re-buying. But this is not case with the cars of Tata motors, the customers find the car value for money. The mean is 3.96 Q 8) payment procedure preference
Sales and Distribution for Tata Motors and Fiat in India Cumulative Frequency Valid Percent Valid Percent Percent cash 30 19.1 19.1 19.1 cheque 27 17.2 17.2 36.3 finance 100 63.7 63.7 100.0 Total 157 100.0 100.0 Most of the customers prefer purchasing a car by the method of finance. So the company should have links with various finance companies at their respective dealership showroom for the convenience of customers. The easy the method of financing, more customers are attracted to the company than their competitors. It gives the company an edge over its competitors. Q 9)
Sales and Distribution for Tata Motors and Fiat in India Are you aware of following facilities offered :Tata Motors Insurance Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent There are various extra facilities that are provided to the customers for extra benefits and convenience. One of them is Tata Motors Insurance. It is a cashless insurance in which during the time of claim, the customer does not have to pay cash and latter get it reimbursed. The majority of the customers were aware of this facility which means that sales force of the company is efficient . Extended warranty Cumulative Frequency Valid YES Percent 157 100.0 Valid Percent 100.0 Percent 100.0 Here a complete sample knew about the extended warranty facility offered by the company which is a good sign. True value Cumulative Frequency Valid Percent Valid Percent Percent yes 133 84.7 84.7 84.7 no 24 15.3 15.3 100.0 157 100.0 100.0 Total
Sales and Distribution for Tata Motors and Fiat in India This was the facility primarily started in the market by Maruti company. The customers used to face various problems while selling off their cars. So to provide convenience to the customers the true value concept came into existence. It was a one stop solution for the customers to get the best value for their used cars. The customers have a confidence that he will not be cheated. This adds to extra benefits offered by the company to keep the customers. They give good exchange offers also if you purchase another car of the same company. The majority of the customers knew about it. Tata finance Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent The company also introduced the finance counter for the customers to avail car loans at the dealership showroom. Everything is at customer‟s convenience. Customer does not has to run here and there for getting the financing done. The customers were aware of it. Autocard Cumulative Frequency Valid Percent Valid Percent Percent yes 15 9.6 9.6 9.6 no 142 90.4 90.4 100.0 Total 157 100.0 100.0 It is a facility in which a customer get points for every 100 rupees spent with the company . These points can later be redeemed. These are also applicable for various
Sales and Distribution for Tata Motors and Fiat in India offers during the year. The customers were not aware about this facility of Tata Motors. The company should make an extra effort to familiarize this facility to the customers. Genuine accessories Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent The customers should use genuine accessories. There are many duplicate product that are available in the market. People use them to save cost. But the customers be made aware about the negative effects that these duplicate products have on the efficiency of the car. These lead to early wear and tear. It can also prove fatal. The customers were aware of the fact to use genuine accessories. Q 10) Overall opinion of tata motors Cumulative Frequency Valid very bad Percent Valid Percent Percent 3 1.9 1.9 1.9 Bad 12 7.6 7.6 9.6 neither bad nor good 21 13.4 13.4 22.9 103 65.6 65.6 88.5 18 11.5 11.5 100.0 Good very good
Sales and Distribution for Tata Motors and Fiat in India Overall opinion of tata motors Cumulative Frequency Valid very bad Percent Valid Percent Percent 3 1.9 1.9 1.9 Bad 12 7.6 7.6 9.6 neither bad nor good 21 13.4 13.4 22.9 103 65.6 65.6 88.5 18 11.5 11.5 100.0 157 100.0 100.0 Good very good Total One-Sample Test Test Value = 3 95% Confidence Interval of the Difference T Overall opinion of Tata 11.729 df Sig. (2-tailed) 156 .000 Mean Difference .771 Lower Upper .64 motors The mean value is 3.77. The opinion of customers on Tata motors is towards the positive side. In t-test we have seen the mean difference to be .771. The customers are happy with their car and have a good experience. .90
Sales and Distribution for Tata Motors and Fiat in India Q 11) would you recommend tata motors to anybody else Cumulative Frequency Valid Percent Valid Percent Percent Yes 127 80.9 80.9 80.9 No 21 13.4 13.4 94.3 9 5.7 5.7 100.0 157 100.0 100.0 Can't say Total Most of the customers are ready to take responsibility and recommend the cars to their family and friends. This is the best method of advertisement i.e. the word of mouth. It does not cost the company and is most influential. So having such customers is advantageous to the company. The company should not loose such customers by
Sales and Distribution for Tata Motors and Fiat in India dissatisfying them. The company has an advantage by having a great deal of these type of customers. Q 12) Gender Cumulative Frequency Valid male female Total Percent Valid Percent Percent 145 92.4 92.4 92.4 12 7.6 7.6 100.0 157 100.0 100.0 Most of the customers that come to the showroom are males. Even if the cars are being bought for females, the males come on their behalf. Q 13) Age Cumulative Frequency Valid Percent Valid Percent Percent 18-25 36 22.9 22.9 22.9 26-35 67 42.7 42.7 65.6 36-50 48 30.6 30.6 96.2 6 3.8 3.8 100.0 157 100.0 100.0 Above 51 Total
Sales and Distribution for Tata Motors and Fiat in India People of all age groups come to the showroom but the majority are of age group 26-35 followed by 36-50 age group . Q 14) Income group (in lacs) Cumulative Frequency Valid Percent Valid Percent Percent below 3 30 19.1 19.1 19.1 3-6 28 17.8 17.8 36.9 6-9 63 40.1 40.1 77.1 9-12 27 17.2 17.2 94.3 9 5.7 5.7 100.0 157 100.0 100.0 Above 12 Total
Sales and Distribution for Tata Motors and Fiat in India People of all income groups come to purchase cars. It has become a necessity rather than luxury. There are all segments of cars available according to the need. gender * Which company's car do you possess Crosstabulation Count Which company's car do you possess Tata gender male female Total Fiat Total 100 45 145 4 8 12 104 53 157
Sales and Distribution for Tata Motors and Fiat in India From this we can state that males prefer buying the car of Tata whereas female prefer buying car of FIAT. gender * What parameters do you seek in a car before buying Crosstabulation Count What parameters do you seek in a car before buying brand popularity gender Male Female Total performance looks & style Total 19 66 60 145 0 3 9 12 19 69 69 157
Sales and Distribution for Tata Motors and Fiat in India Males look for performance as a parameter in their decision making to purchase cars where as female prefer looks and style of the car as a parameter before purchasing. gender * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales maintenance service gender male female Total mileage cost Total 37 65 43 145 6 3 3 12 43 68 46 157
Sales and Distribution for Tata Motors and Fiat in India Males prefer mileage as a parameter for re-buying followed by maintenance cost and then post sales service where as females look for post sales service as an important parameter for making re-buying decision. Which of the following best describes your line of work? * Which company's car do you possess Crosstabulation Count Which company's car do you possess Tata Which of the following best Fiat Total 6 36 business 32 34 66 17 10 27 Taxi services Total 30 student describes your line of work? services 25 3 28 104 53 157 People of service class possess more of Tata cars than FIAT. Customers from business class prefer FIAT cars over Tata. Students also have an inclination towards Tata cars. Taxi owners prefer Tata cars because of its mileage.
Sales and Distribution for Tata Motors and Fiat in India Which of the following best describes your line of work? * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales maintenance service Which of the following best mileage cost Total 18 12 36 business 25 28 13 66 9 3 15 27 Taxi services Total 6 student describes your line of work? services 3 19 6 28 43 68 46 157
Sales and Distribution for Tata Motors and Fiat in India Customers of service class give more importance to mileage than maintenance cost followed by post sales service. Customers from business class have an almost equal weightage for mileage and post sales service but mileage has an upper hand. The least important parameter as maintenance cost. In case of students, maintenance cost is the prime parameter followed by post sales service and mileage. In case of taxi, mileage plays an important role followed by maintenance cost.
Sales and Distribution for Tata Motors and Fiat in India Age * What parameters do you seek in a car before buying Crosstabulation Count What parameters do you seek in a car before buying brand popularity Age performance looks & style Total 18-25 0 6 30 36 26-35 7 33 27 67 36-50 12 27 9 48 0 3 3 6 19 69 69 157 Above 51 Total Customers from the age group 18-25 goes for looks & style of the car for buying it. From the age group 26 and above, they give more importance to performance of the car.
Sales and Distribution for Tata Motors and Fiat in India Age * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales service Age mileage maintenance cost Total 18-25 12 3 21 36 26-35 13 41 13 67 36-50 15 21 12 48 3 3 0 6 43 68 46 157 Above 51 Total In making their re-purchase decision, customers from age group 18-25 give importance to maintenance cost than post sales service and lastly to mileage.
Sales and Distribution for Tata Motors and Fiat in India Where as all the customers from other age groups give preference to mileage in rebuying. Which of the following best describes your line of work? * payment procedure preference Crosstabulation Count payment procedure preference cash Which of the following best cheque finance Total 6 0 30 36 business 24 27 15 66 student 0 0 27 27 Taxi services describes your line of work? services 0 0 28 28 30 27 100 157 Total Customers from service sector, students and taxi service providers prefer finance as a mode of payment for the purchase of cars. Where as business class prefer payment to be made either by cash or cheque.
Sales and Distribution for Tata Motors and Fiat in India Which company's car do you possess * Spare parts availability Crosstabulation Count Spare parts availability 2 Which company's car do you Tata possess Total Fiat 3 4 5 Total 3 15 76 10 104 12 24 8 9 53 15 39 84 19 157 Customers of Tata have given higher rating to the availability of the spare parts than that of FIAT. The spare parts of FIAT were not available at all times.
Sales and Distribution for Tata Motors and Fiat in India Income group (in lacs) * payment procedure preference Crosstabulation Count payment procedure preference cash Income group (in lacs) cheque finance Total 0 0 30 30 3-6 0 3 25 28 6-9 21 6 36 63 9-12 9 10 8 27 Above 12 Total below 3 0 9 0 9 30 28 99 157
Sales and Distribution for Tata Motors and Fiat in India Customers below the income of 3 lacs finance their vehicles. From 3-6 lacs also customers go for financing scheme. In the group 6-9 lacs financing is still the majority but a great deal of rise in cash mode of payment is seen. In 9-12 lacs cash and cheque mode of payment is seen. Customers above the income group of 12 lacs prefer making the payment by cheque and do not prefer financing their vehicles. 5. CONCLUSION & RECOMMENDATIONS  Fiat car is preferred more by females rather than males. Business class also has an inclination towards Fiat more.  The décor of the waiting lounge is rated less by the customers, the company should take measures to improve on it.  The availability of spare parts of Fiat cars is less whereas of Tata are readily available. So the company should pay more attention to it.  Most of the customers purchase the cars by mode of financing. There are many customers who after purchasing the cars are not able to pay EMI. So they are considered defaulters. There are many such cases of defaulters. The finance company has be vigilant as to who to give the consent or not.  There are many enquiries which are cold enquiries. The sales person has to make an extra effort to convert the cold and warm enquiries to hot enquiries. Due to negligence of sales man there are many loss of customers Sales Man
Sales and Distribution for Tata Motors and Fiat in India  Should be well versed with the pay scale structure.  Incentive slabs should be formulated to endure them for more sales.  Sales man should be friendlier and solve the problems from both the consumer‟s and company's point of view.  Should be motivated to open new outlets, keeping in mind the incentives being provided on it.  Sales man should clear the schemes as soon as possible.  Should ensure that full product range is available with the ready stock.  Sale man should be energetic, be patients, quick decision maker, problems solver and ready to do any kind of work related to his job profile. Stockiest  To maintain more friendly relationship with the sales man and retailers.  Universal launch of scheme along with the arrangement with the company.  Should have enough of display material for the outlets. Sales Executive  To attend to complaints/problems being recorded by sales man as soon as possible.  To maintain cordial relationship with the sales man.  Sales Executive should attend all key accounts and regular visit should be made every week. He should also appreciate them for their good work.  Random /surprise checks to be made at the outlets to access the working of sales man and whether the schemes are duty fully given to the retailers irrespective of the category of the outlets. To increase the coverage of outlets 1) The outlets, which have stopped purchasing from distributors due to any kind of dispute between stockiest and the retailer, should be solved by the timely action of sales executive. 2) The company should come out with suggestion Letter's that should be given on a quarterly basis to all the retailer's and stockiest, so that the sales Executive handling a particular belt is aware of the problems, grudges, grievances of the retailers. This will
Sales and Distribution for Tata Motors and Fiat in India help him in taking timely action, which will save the matters from aggravating further.
Sales and Distribution for Tata Motors and Fiat in India 5.2 REFLECTIONS ON WHAT HAS BEEN LEARNED DURING THE INTERNSHIP EXPERIENCE It was great opportunity for me to do my internship from TATA Motor.  I got a project which gave me the opportunity to meet the various people in the corporate world. I could understand the working culture of corporate as well as government offices. Before this I never visited such big organizations.  Making plan for the next day and finding the concern department and person allowed me to increase my communication ability, written as well as verbal.  My confidence to meet people has tremendously gone up. Today I have that much confidence that I can meet to any big person in any organization.  My boss also helped me very much to learn about corporate world. How to prepare the proposals and how to give the company offer all I learnt from my boss.  I also attended the customer demonstration which gave me the knowledge about how the customer can be convinced, how there queries are handled.  I also learnt very small-small things in the organization which is very necessary in any flat organization like photocopying; Fax the document which I never know before.
Sales and Distribution for Tata Motors and Fiat in India REFERENCES  2005. Implementation of the VM fuel strategy presses ahead. [online] Available on: http://media.vw.com/article_display.cfm?article_id=9664 [Accessed on 27th March 2006]  2006. Car and Driver. Fighting for street Credit. US: Hachette Filipacchi Media.  BBC publisher, 2005. Top Gear. BBC publisher, 2006. Top Gear. London: BBC publisher. Available on : http://www.topgear.com/drives/A4/ES/new/ [Accessed on 24th March 2006]  BITD, 2005. European Union. The International Customs Journal, 14(26), pp. 1493  BUY USA, 2006. The UK Automotive Parts Aftermarket. A Market Research report, September, pp. 1-8  Burt, T. (2001), „Tata motors set to expand in Spain‟, Financial Times  CAR BUYERS GUIDE, 2006. There are 20 CBG Partner Tata motors Dealers in India. [online] Available from: http://www.cbg.ie/dealer_list.asp?Make= Tata motors [Accessed on 15th May 1006]  CARL R. ANDERSON, CARL P. ZEITHAML, 1984. Academy of Management Journal, 27(1), pp. 5-24.  CAR WARRANTY DIRECT, 2006. Your free Quote. [online] Available from: http://www.carwarrantiesdirect.com/ [Accessed on 14th May 2006]  CARZONE.IE, 2006. Find your nearest dealer.[online] Available from: http://www.carzone.ie/Dealers/ http://www.carzone.ie/Dealers/index.cfm?fuseaction=Garages&CountyID=10 [Accessed on 14th May 2006]
Sales and Distribution for Tata Motors and Fiat in India  CHARITAS, INC., 2006. 66PRIZM marketing segments. [online] Available from: http://www.charitas.com/claritas/Default.jsp?ci=3&si=4&pn=prizmne_segments [Accessed on 12th may 2006]  COS, 2006. Statistics: National Accounts [online]. Available from: http://www.cso.ie/statistics/nationalacc.htm [Accessed 21 March 2006]  Foundry Trade Journal, 2001. Sourcing Strategy of VW. [online] Available on: http://www.bussiness.com/periodicals/article/826786.html. [Accessed on 27th March 2006]  Kotler P. and Armstrong G., 2004. Principles of Marketing 10th ed. New Jersey: Person Education  SIMI, 2006. Pre Budget Submission 2006 [online]. Available from: http://www.simi.ie/showcontent.asp?SubsectionID=12 [Accessed 21 March 2006]  SIMI, 2006. SIMI Statistical Service New Registrations February 2006 [online]. Available from: [Accessed 22 March 2006]  SPRAY, C., 2006. Sunday Independent. Jetta‟s all revved up with no place to go. March 26, 2006.  Team F., 2005. EU GDP per capita in 2004: India 40% above average [online]. Available from: http://www.finfacts.com/Indiabusinessnews/publish/article_10002088.shtml [Accessed 19 March 2006]  WIKIMEDIA, 2006. List of Tata motors factories. [online] Available from: http://en.wikipedia.org/wiki/List_of_ Tata motors _factories [Accessed on 15th May 2006]  WHITWORTH, B., 2002. Company Car. London: World Media Ltd. Available on: http://www.findarticles.com/particles/mi_momxi/is_4_22/ai_85482104. [Accessed on 25th March 2006]  http://www.carzone.ie/ [Accessed on 28th March 2006]  http://www.bmwworld.com/bmw/purves.html [Accessed on 26th March 200]
Sales and Distribution for Tata Motors and Fiat in India ANNEXURE Q.1) Which of the following best describes your line of work : a) Service b) Business c) Student e) Taxi Services Q.2) What parameters do you seek in a car before buying a) Brand Popularity b) Performance Q.3) d) Housewife c) Looks & Style How long have you been associated with TATA Motors? a) 0-1 Year b) 1-3 Year c) 3-5 Year d) More than 5 yrs Q.4) Which company‟s car do you possess? a) Tata b) Fiat Q.5) If you need to buy a new or another car, would you again select the Tata or Fiat Brand? a) Yes b) No Q.6) What parameter is important for influencing your re-buying decision? a) Post Sales services rendered by the company b) Mileage of the car c) Maintenance costs incurred Q.7) How would you rate TATA Motors on the following parameter? i) Are the sales person knowledgeable ii) Do the employees spend enough time with you: 1 2 3 4 5
Sales and Distribution for Tata Motors and Fiat in India Before sales After sales iii) Are the spare parts available iv) Is the Vehicle in good condition at the time of delivery v) Are the prices affordable vi) Are there any attractive discounts offered vii) Is the décor of the waiting area pleasing viii) Were you offered a test drive ix) Is post sale follow ups done regularly x) Are the complaints responded quickly xi) Is the service at Tata Motors excellent xii) Are all the commitments fulfilled xiii) Do you find the car value for money Q.8) What type of payment procedure do you prefer? a) Cash b) Cheque c) Demand Draft d) Finance Q.9) Are you aware of the following facilities provided by Tata Motors? i) FACILITIES Tata Motors insurance ii) iii) iv) v) Extended warranty True value Tata finance Auto card Yes No
Sales and Distribution for Tata Motors and Fiat in India vi) Genuine accessories Q.10) What is your overall opinion about Tata Motors? Very Bad 1 Bad Neither Bad nor Good 3 2 Good 4 Very Good 5 Q.11) Would you recommend Tata Motors to anybody else? a) Yes b) No c) Cant say Gender: Male Female Age: a) Below 18 Income group (in lakhs): a) Below 3 b) e) Above 12 Name: b) 18-25 c) 26-35 b) 3-6 c) 6-9 d) 36-50 e)51&above d) 9-12 _____________________________ Contact no: ____________________________ Address: ____________________________________________________

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Tatamotorsfinal httpcollegeprojects1-130711002011-phpapp0233

  • 1.
    Sales and Distributionfor Tata Motors and Fiat in India Sales and Distribution for Tata Motors Summer Training Report on Sales and Distribution for Tata Motors Submitted Partial fulfilment for the award of degree of Master of Business Administration Academic Session: 2011-13 Submitted By: Vikas Singal MBA 3rd Semester Roll No:736/MBA/11 P.D.M.COLLEGE OF ENGINEERING Maharshi Dayanand University, Rohtak2011
  • 2.
    Sales and Distributionfor Tata Motors and Fiat in India DECLARATION
  • 3.
    Sales and Distributionfor Tata Motors and Fiat in India CERTIFICATE
  • 4.
    Sales and Distributionfor Tata Motors and Fiat in India ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr.Abhishek Grover , DIRECTOR, Grover Motors, for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Grover Motors, for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Mr T.V.Raman of my institute, for his continued guidance and invaluable encouragement.
  • 5.
    Sales and Distributionfor Tata Motors and Fiat in India Contents Declaration Certificate from Faculty guide Acknowledgement Executive Summary Chapter 1. INTRODUCTION 1.1. Objectives 1.2. Industry Profile 1.3. Company Profile PAGE NO. 7 Chapter 2: Distribution of Tata Motors 34 Chapter 3. Research Methodology 3.1 Types of Research 3.2 Data Collection Procedures Used in my Research 3.3 Data Collection Techniques 44 Chapter 4. Findings and Analysis 47 Chapter 5. Conclusion 5.1 Conclusion and Recommendations 5.2 Learning from the Internship 77 References 80 Annexure (Sample Questionnaire) 82
  • 6.
    Sales and Distributionfor Tata Motors and Fiat in India EXECUTIVE SUMMARY My Study will be limited to speedometers with reference to Sales and Distribution for Tata Motors in India. To analyze the sales and distribution of TATA motors, I had taken a dealership as a case study. By working in a dealership I came to know about the distribution channel of the company. The main purpose of pursuing my Summer Internship at Tata Motors was to get a better understanding of the Indian Automobile Industry. Also, I wanted to specifically get an overview of Tata Motor‟s business group- the kind of customers it caters to, the attributes which influence the sales of cars; and the strategies which may improve the sales of the same. The research started by conducting a small pilot study on a few respondents- this process easily detects the errors in the questionnaire which may otherwise be overlooked. I applied the tool of Questionnaires to collect data. I conducted the survey on the existing customers of the company towards the sales and service of the vehicles. Consumers, from eclectic age groups, were also surveyed to get a broader picture of their preferences.
  • 7.
    Sales and Distributionfor Tata Motors and Fiat in India INTRODUCTION 1.1 Objectives  To study the distribution channel of Tata motors.  To conduct sales of cars of Tata Motors.  To analyze the customer's satisfaction by conducting a research.
  • 8.
    Sales and Distributionfor Tata Motors and Fiat in India 1.2 INDUSTRY PROFILE AUTOMOBILE INDUSTRY IN INDIA In the fast moving world with the biggest countries with huge economies India has managed to be the eleventh in the world for annual production of 2 million units approximately. This sector in India is growing at a very fast rate and it has crossed China in terms of selling the Units. In the matter of population India is the second largest country in the world with a population of 1.1 billion. In this respect it is just next to China. But it has a very small land mass as compared to China. India has become an attraction for car manufacturers around the Globe as a graph of its ownership of car i.e. 7 per 1000 people. Automobile industry in India comprises of 13 million direct and indirect employees. It contributes 3.1% of India‟s GDP (nominal) and the valuation of the industry is about US$ 34 billion. India's motorcycle market with an annual sale of 5 million units is the second largest around the globe. India has Fourth largest commercial vehicle market, Eleventh largest passenger car market, Fifth largest bus & truck market (by volume) around the globe. With this growing pace India by 2016 is expected to be the seventh largest automobile market and by 2030 worlds 3rd largest behind US & China. Late 1890‟s is the time when Automobile was introduced in India but it came into existence only after the independence in 1947. Until 1980‟s Hindustan Motors and some small manufacturers Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly till the time when Maruti Udyog Suzuki came into existance after the death of the great Indian politician Sanjay Gandhi who championed the need for a "people's car". It quickly gained over 50% of the market share. The Maruti 800 became popular because of its low price, high fuel efficiency, reliability and modern features relative to its competition at the time. From the decades in the Indian automotive industry there were only few vehicle models but then also there is a good lead time to get a car after the booking. So with changing
  • 9.
    Sales and Distributionfor Tata Motors and Fiat in India economy, competition, and urge to grow big we are here with more than 100 Models and every moth with a new model to offer. Keeping in mind the comfort of the people and their choice the models are prepared. Performance of vehicle is increasing day by day, its fuel efficiency and reliability has no match with others around the globe. Inspite of having manufacturing of major foreign automakers based in India our Indian Domestic Automobile Companies are leading in the Market. Tata Motors is the largest commercial vehicle company, Maruti Suzuki is the largest passenger vehicle company & Hero Honda is the largest motorcycle company in India. Mahindra & Mahindra, Ashok Leyland and Bajaj Auto are some more leading automobile manufacturers. Automobile Domestic Sales Trends (Number of Vehicles) Category 2006-07 2008-09 % change Passenger Car 882208 1076408 22.01 Total Passenger Vehicles 1143076 1379698 20.7 Total Commercial Vehicles 351041 467882 33.28 Three Wheelers 359920 403909 12.22 Total Two Wheelers 7052391 7857548 11.41 Grand Total 8906428 10109037 13.5 Source: Society of Indian Automobiles Manufacturers.  Maruti Udyog Ltd, the biggest car maker of the country, selling 2, 93,536 vehicles as against 2,43,211 in the corresponding year last year. having a growth rate of about 20.7 per cent during April-August,2009  Mahindra & Mahindra Ltd's (M&M) cumulative sales with exports were 1,06,094 units compared to 78,144 units in the corresponding period last fiscal during the April-September having a growth rate of about 35.8 per cent  Honda Siel Cars India Ltd. (HSCI), leading manufacturer of premium cars in India, selling 41,638 units against 35,853 units. having a growth of 16.1 % in cumulative sales for the period January to August, 2009.
  • 10.
    Sales and Distributionfor Tata Motors and Fiat in India  DaimlerChrysler sold 1,681 units in India from January to August, growth of over 22 per cent from a year ago.  Car-maker General Motors India (GM), totally owned subsidiary of General Motors Corporation, reported a 114 % increase in domestic sales during August at 5,817 units against 2,720 units in the same month last year.  Hero Honda crossed the 2 million unit sales mark during the Jan-Aug period.  Motorbike exports from India have grown to 3 to 21 to 321 units in the AprilAugust period this fiscal from 2 to 37 to 103 units in the same period last year. CARS BY PRICE RANGE   Nano Ambassador Fiat Palio  Hyundai Santro, Getz  Chevrolet Opel Corsa  Maruti Zen, Wagon R, Versa, Esteem, Gypsy  Ford Icon & Fiesta  Tata Indica, Indigo XL, Indigo Marina  Chevrolet Swing, Optra Magnum, Tavera  Rs. 5-10 Lakhs Reva  Rs. 3-5 Lakhs   Under Rs. 3 Lakhs Maruti 800, Alto, Omni Hyundai Accent, Elantra  Mahindra Scorpio  Maruti Baleno  Toyota Innova  Tata Safari
  • 11.
    Sales and Distributionfor Tata Motors and Fiat in India   Mahindra Bolero  Hyundai Sonata Embera  Toyota Corolla  Ford Mondeo & Endeavour  Chevrolet Forester  Skoda Octavia & Combi  Honda Civic  Honda CR-V  Maruti Suzuki Grand Vitara  Terracan & Tucson, Captiva  Mitsubishi Pajero  Audi A4  Opel Vectra  Honda Accord  Mercedes C Class  Rs. 15-30 Lakh Honda City ZX  Rs. 10-15 Lakhs Mitsubishi Lancer, Mitsubishi Cedia Toyota Camry Major Companies List of automobile manufacturers in India Indian companies Force Motors Force Motors was formerly known as Bajaj Tempo Ltd. Founded in 1958, it is located in Akurdi, a Pimpri-Chinchwad neighbourhood of Pune, India. They manufacture three wheelers, multi utility and cross country vehicles, light commercial vehicles, tractors and now heavy commercial vehicles.  Gama, Cruiser
  • 12.
    Sales and Distributionfor Tata Motors and Fiat in India  Trax, Toofan, Challenger Ashok Leyland Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955. For over five decades, Ashok Leyland has been the technology leader in India's commercial vehicle industry, moulding the country's commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms. Ashok Leyland has six manufacturing plants - the mother plant at Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at Alwar and Bhandara. From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel engines for industrial, marine and genset applications, Ashok Leyland offers a wide range of products. Hindustan Motors Hindustan Ambassador Hindustan Motors is one of the oldest Indian car manufacturers. It is best known for the Ambassador which has been virtually unchanged for about 30 years. It is still very popular as a taxi and is widely used by Indian politicians. Many people have come to associate India with Ambassador and is a prominent part of the Indian landscape.  Trekker (Discontinued)  Landmaster (Discontinued)  Contessa (Discontinued) - 5th Generation Vauxhall Victor  Ambassador - a version of the 1950s Morris Oxford Mahindra & Mahindra Limited Mahindra Classic The automotive section of Mahindra started off when a first batch of seventy five Utility Vehicles (UVs) was imported in CKD condition from Willys in 1947. It has come a long way, not just manufacturing Jeeps but also agricultural equipment and light trucks.
  • 13.
    Sales and Distributionfor Tata Motors and Fiat in India  Armada (Discontinued)  Voyager Discontinued)  Bolero  Commander  CL  MaXX  Scorpio  Mahindra and Mahindra Classic This was an open jeep with good off roading capabilities, a 4*4 and 4*2 option, huge headlamps and roof mounted lights. == Maruti Suzuki Maruti 800 Maruti Gypsy Maruti Udyog was formed as a partnership between the Government of India and Suzuki of Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car manufacturer in India and especially dominant in the small car sector. Then it brought out The Maruti 1000, made by Maruti Udyog was the first ever contemporary sedan-type car launched in India. The car (which Suzuki sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs. 3.81 lakh, it was back then the costliest car released in the Indian market. Then the company replaced it with Esteem and from that days on a line of Suzuki cars rolled out in the Indian market.  800  Omni  1000 (Discontinued)  Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)  Alto  Esteem(Discontinued)  Baleno - (Discontinued)  Baleno Altutra - (Discontinued)
  • 14.
    Sales and Distributionfor Tata Motors and Fiat in India  Gypsy  Swift  SX4  WagonR  Versa  Zen Estilo - First Generation Suzuki MR Wagon  Grand Vitara - First Generation Suzuki Grand Vitara  Eigo Multi-national companies BMW BMW is manufacturer of prestigious sport sedans that are known for their nimble handling. BMW enjoys good brand recognition in India, thanks to Indian movies and the rich who have been importing these cars for decades. It has set up a plant in Chennai, Tamil Nadu, to manufacture cars locally exclusively for the local market with no plans for export. It set up the plant to circumvent high import duties.  3 Series  5 Series  7 Series Fiat Fiat India has struggled in India since its inception. The Fiat Uno was one of the first products to be introduced. The Fiat Palio was later introduced and was initially a big hit with its style and ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency. Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the Fiat Siena to Fiat Petra without much success. It roped in Sachin Tendulkar as one of its brand ambassadors. Even Michael Schumacher appeared in an ad for the Palio. It has entered now into an alliance with Tata Motors to jointly manufacture cars at its plant in Ranjangaon, near Pune. The facility will enable the two companies to make about 200,000 cars per annum, and also house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance will also see
  • 15.
    Sales and Distributionfor Tata Motors and Fiat in India Tata Motors use Fiat's diesel technology - the 1.3 litre multijet diesel engine - for its own vehicles. The two companies also have a distribution and service partnership.  Uno(Discontinued)  Palio  Palio Stile  Siena(Discontinued)  Siena Weekend (Discontinued)  Petra(Discontinued)  Adventure  Punto  Linea Ford Motors Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a major plant in Tamil Nadu. The first model was the Escort.  Escort (Discontinued) - It was offered with a 1.3 Liter petrol termed Alpha and 1.5 Liter Diesel engine termed Orion, and at a time when the car wars in India had just begun. The diesel version was fancied by many due to the fact that diesel was available at half the price of petrol(gasoline/gas) in India at that time. Among the famous owners of the Ford Escort was Azim Premji who drove a black one for almost eight years until he traded it for a Toyota Corolla. The Ford Escort 1.8 was ranked the highest in the J.D. Power and Associates 1997 Indian Customer Satisfaction Study. It was also voted the Best Quality Car in the J.D. Power India Initial Quality Study.  Ikon - Was launched to phase out the Escort, known for the Rocam engine, available with a choice of petrol and diesel version, the car did well. Ford is known for launching new versions with some minor cosmetic changes every now and then.  Mondeo (Discontinued) - Was Ford's offering to the D segment in India in 2001, was brought in as a CBU from Belgium with Ghia being the only trim version available. It was available with both 2.0L Duratorq diesel and 142 bhp 2.0L petrol
  • 16.
    Sales and Distributionfor Tata Motors and Fiat in India Duratec engines. It was the first car to be offered with Xenon HID headlamps in India. It is alleged that the Mondeo performed better than the 2.3 L Accord available in India at that time. But buyers stayed away as it was more expensive than the Accord. The diesel version was phased out in 2003.  Endeavour - Sold as the Ford Everest in other parts of Asia and based on the Ranger pickup, it was offered in both 4X4 and 4X2 options but with only a 2.5 L, 4 Cylinder In-line, Turbocharged & Inter cooled Diesel Engine and manual transmission.  Fusion - was launched as an Urban Activity Vehicle available with a 1.6 L , 4 cyl 101 bhp (75 kW/102 PS) engine with 5 speed manual transmission. In 2007 a diesel version was launched which has the same 1.4 L 68 bhp (51 kW/69 PS) engine as the Fiesta.  Fiesta - Launched in November 2005 and was Ford's fifth model in India, and is available in 1.6 L petrol and 1.4 L diesel engines. Bill Ford made a personal visit to launch the car in India. General Motors Chevrolet has been one of the most recognized brands in India for several decades. They were made popular as the vehicle of choice of the heroes in Bollywood movies. The model lineup consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered India with the Opel brand, but the Opel brand was dropped in March 2006 because sales were at an all time low due to high prices and General Motors wanted to focus more on their Chevrolet brand. Since the Chevrolet brand was introduced in India, there have been no new Opel products. GM's Indian operations were originally a JV between Hindustan Motors and GM, with most of GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now wholly owned by GM. Cars from Chevrolet are:  Tavera - Rebadged Isuzu Panther  Forester - (Discontinued) Rebadged First Generation Subaru Forester  Aveo - Second Generation Daewoo Kalos sedan
  • 17.
    Sales and Distributionfor Tata Motors and Fiat in India  Aveo UV-A - First Generation Daewoo Kalos hatchback  Optra - Rebadged Daewoo Lacetti  SRV - Rebadged Daewoo Lacetti  Spark - Formerly Daewoo Matiz in India  Cruze  Captiva Honda Honda Siel Cars entered India in 1995. It sells 4 cars in India - the City, Civic, Accord, and CR-V. The manufacturing plant of Honda Siel is located in Greater Noida. The model of Accord sold in India is the 2003 model. The most inexpensive car from Honda The City. The most Expensive - The Honda Accord V6.  Accord - It was introduced in India in July 2001. It is sold in three versions Accord VTi-L M/T, Accord VTi-L A/T and Accord V6 A/T. Both the engines, the standard i-4 and V-6 have be de-tuned which produce less power compared to the American models, the I-4 produces 142 bhp (106 kW/144 PS) while the V6 produces 221 bhp (165 kW/224 PS), de-tuned for better fuel efficiency.  City - Was launched in India in December 1997 ,initially offered in two options. A 1.3 liter engine producing 90 bhp (67 kW/91 PS) and a bigger 1.5 liter producing 100 bhp (75 kW/101 PS). Two years later a VTEC option was also offered. All were four cylinder engines. In October 2003 the City underwent a major revamp and is popularly called as New Honda City (NHC). Surprisingly Honda gave the new City less powerful engines and decided to improve the fuel efficiency. The new City features a 1.5 liter engine producing 77 bhp (57 kW/78 PS). It offered more interior space and with bright and refreshing interiors. About two years later, a face lifted version - CITY ZX - was introduced. At the same time, a VTEC engine model too was introduced.  Civic - Was launched in July 2006 in India 6 months after the international debut. The car is the first in this segment in India to offer unprecedented safety features like ABS, EBD as standard. It is also the first in its class to feature reverse swing
  • 18.
    Sales and Distributionfor Tata Motors and Fiat in India windshield wipers. The only problem with the car with respect to India is its low ground clearance.  CR-V - It was introduced in India along with the Accord. It was and is still offered with a 2.4 liter i-VTEC engine producing 152 bhp (113 kW/154 PS). Hyundai When Hyundai entered India, the brand was virtually unknown in the Indian market. They signed up Bollywood actor Shah Rukh Khan and their excellent advertising campaign made Hyundai a household name and helped it reach the second place behind market leader Maruti Suzuki.  Santro - second generation Hyundai Atos  Accent - second generation Hyundai Accent sedan  Sonata - sold as the Sonata Embera  Verna - third generation Hyundai Accent sedan  Getz - sold as the Getz Prime  Elantra - 3rd generation Hyundai Elantra sedan  Terracan (discontinued)  Tucson  i10 - brand new small car, global launch in India in 2007.  I20 Renault-Nissan  Logan In partnership with Mahindra and Mahindra Mercedes-Benz  M-Class  S-Class  E-Class  C-Class Mercedes-Benz has had to cater to the ever growning luxury segment in India, in a much better fashion now, especially after the arrival of the other luxury German manufacturers.
  • 19.
    Sales and Distributionfor Tata Motors and Fiat in India Now, Mercedes-Benz cars are launched in India soon after the worldwide launch and homologation as opposed to earlier, when Mercedes-Benz had monopolized the niche Indian market. Mitsubishi Motors  Lancer - Sixth Generation Mitsubishi Lancer  Cedia - Seventh Generation Mitsubishi Lancer  Pajero - Second Generation Mitsubishi Pajero  Montero - Third Generation Mitsubishi Pajero Škoda Škoda is an important car manufacturer of India. It recently launched the Laura, the Octavia still continues to exist. Skoda also offers the Superb in India but it's not too popular.  Octavia  Superb  Laura  Fabia Toyota Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to make way for the Toyota Innova, which was launched in India in 2005. The most expensive car from Toyota is a very powerful SUV - The Land Cruiser Prado. Toyota Kirloskar Motors LTD is a joint venture between Toyota Motor Corporation and the Kirloskar Group.  Qualis (Discontinued) - 3rd Generation Toyota Kijang  Camry - 6th Generation Toyota Camry  Corolla - 9th Generation Toyota Corolla  Innova  Land Cruiser Prado - 3rd Generation Toyota Prado SWOT STRENGTHS  Largest production base about cars per day
  • 20.
    Sales and Distributionfor Tata Motors and Fiat in India  Different model exported to different country.  Well established networking and distribution system in 30 countries of the world.  Market share of 30% in the Indian car industry.  Good technical support and service abroad.  Produces the most fuel efficient vehicles.  Highly efficient and technical staff abroad.  Good customer support.  Good infrastructure in Europe. WEAKNESS  Low emphasis on research and development  Technology in automobile is out dated. OPPORTUNITIES  Largest market in Europe and also good market in India. THREATS  Competition from the automobile industry of the world.
  • 21.
    Sales and Distributionfor Tata Motors and Fiat in India 1.3 COMPANY PROFILE a. Review of literature on the company Tata Motors Tata Motors Limited (formerly known as TELCO (TATA Engineering and Locomotive Company), (NYSE: TTM) - is India's largest passenger automobile and commercial vehicle manufacturing company. It is a part of the Tata Group, and has its headquarters in Mumbai, Maharashtra. One of the world's largest manufacturers of commercial vehicles and known for its hatchback passenger vehicle Tata Indica, Tata Motors has its manufacturing base in Jamshedpur, Lucknow, Pune and Singur. The OICA ranked it as the world's 21st largest vehicle manufacturer, based on figures for 2006.[1] Tata Motors was established in 1945, when the company began making trains. Tata Motors was first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during 2001-2006 which was among the top 10 corporate profits in India. In 2004 it also bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in
  • 22.
    Sales and Distributionfor Tata Motors and Fiat in India South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company. On 10 January 2008, Tata Motors launched their much awaited Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati Maidan, Delhi. Tata Motors commences distribution of Fiat Cars across India Tata Motors and Fiat India Private Limited announced the commencement of the new Tata-Fiat dealer network to sell both Tata and Fiat branded cars, along with service and sales of spare parts, in 11 cities across India. The Tata-Fiat dealer network comprises 25 existing Tata Motors Passenger Vehicles dealers and 3 existing Fiat India dealers. The 28 Tata-Fiat dealers will sell the Fiat Palio (1.2 EL PS, 1.2 ELX, 1.6 Sports) and the Fiat Adventure (1.6 Sports), and all Tata Motors Passenger Vehicles - the Tata Indica, the Tata Indigo, the Tata Indigo Marina, the Tata Sumo and the Tata Safari. The beginning of operations of the Tata-Fiat dealer network follows the agreement, announced by the Fiat Group and Tata Motors on January 13, 2006, to cooperate on dealer network sharing. The execution of the distribution arrangement is the first initiative post the signature of the Memorandum of Understanding signed between the Fiat Group and Tata Motors in September 2005. Discussions are on to explore other areas of co-operation, on which specific announcements can be expected once their feasibility is established. Commenting on the commencement of the Tata-Fiat dealer network, Mr. Rajiv Dube, Sr. Vice-President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata Motors, said, “Tata Motors is delighted to be partnering Fiat India in bringing a larger portfolio of products under a single roof at our joint dealerships. Between the Tata and Fiat brands, the company is in a position to offer one of the widest product offerings in the Indian market with the promise of several exciting options to come.” Mr. Giovanni de Filippis, Managing Director of Fiat India Private Limited, said, “The coming together of Tata and Fiat through the dealer network sharing signifies better service, after sales support and more convenience to Fiat customers. Our customers have always been delighted with the superior build quality of our cars. The after sales support
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    Sales and Distributionfor Tata Motors and Fiat in India that comes with the Tata trust will complement this, and Fiat is confident of serving its customers better.” Existing Fiat dealers will continue to retail the full range of Fiat offerings, including the Fiat Petra. About Fiat One of the pioneer companies in the automobile industry, Fiat has produced more than 85 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy. Some of them have represented milestones in the automotive industry. The Fiat Group‟s Automobiles Sector operates world-wide with the following brands: Fiat, celebrated for value, economy, and innovation and whose mass produced cars are distributed over almost the entire price class spectrum; Lancia (acquired in 1969) means prestige cars noted for their elegant styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and luxury vehicles of style and distinction; Maserati (acquired in 1992) represents a landmark in the history of the automobile; Ferrari (acquired in 1969), well renowned for unsurpassed design, performance, and luxury, is a legendary automobile that imparts special cachet to its owner. Fiat India Private Limited, with its renewed brand strategy for the Indian market, is focused on the premium end of the B & C category in the growing automobile sector.
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    Sales and Distributionfor Tata Motors and Fiat in India Fiat Adventure Sport is the latest offering targeted at the new generation of customers who enthusiastically seek out the latest trends in style, safety, engine and performance. Fiat‟s superiority in design and technology has been re-emphasized from the fact that its 1.3-multi jet has been chosen as the “Engine of the Year 2005” in the 1 to 1.4 litres by the Jury of the “International Engine of the Year” award.
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    Sales and Distributionfor Tata Motors and Fiat in India b. Historical analysis Background Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently headed by Ratan Tata. The company has the workforce of 24000 employees working in its four plants and other regional and zonal offices across the country. Tata Motors' range of passenger cars is still not comprehensive by international standards. In commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic heavy commercial market. The company is trying to modernise its range of commercial vehicles. Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial Services (TMLFS), in September 2006. Time line and milestones Tata Motors launches its first truck in collaboration with Mercedes-Benz 1960-1986 Tata Motors is the 2nd largest commercial vehicle maker in India. World over it is the world's fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in 1960 with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in Pune. It took five years for the company to begin the commercial
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    Sales and Distributionfor Tata Motors and Fiat in India production of heavy commercial Vehicles. Considering the road infrastructure of the country which does not support heavy vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986. 1987-1996 Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It was an effort made to reduce the pollution in the existing Tata engines and to produce more environmentally friendly engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used on Cummins engines. 1997-2006 In 2000, it launched compressed natural gas (CNG) buses and also filled the product line gap through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is useful for medium tonnage loads. Post 2000, the company introduced a variety of new models. It introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers' requiring one and same vehicle for commercial as well as personal use. Tata Novus In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the acquisition were:  Company‟s global plans to reduce domestic exposure The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors, it is increasingly looking at the international markets. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments.
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    Sales and Distributionfor Tata Motors and Fiat in India  To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project On its journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus). Joint ventures In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end inter-city buses in the country. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global leader in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. A venture with British carmaker MG Rover saw the launch of the CityRover in 2003. This car was based on the Tata Indica and built alongside it in India, but sales were not strong and production finished in April 2005 when MG Rover went bankrupt. MG Rover was purchased by Nanjing Automobile of China three months later, but when car production resumed in 2007, the City Rover was not part of the production plans. Tata Ace The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that Ace had changed the dynamics of the light commercial vehicle (LCV) market in India by creating a new market segment termed the SCV segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, since the launch of Ace, LCV sales of Tata Motors had
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    Sales and Distributionfor Tata Motors and Fiat in India grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries. [3] By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Autoline In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a Briggs & Stratton emissions test) to express any formal interest in the turbulenceboosting cylinder head grooves invented by Somender Singh (Mysore). 2007 Tata Indigo Tata Motors, through its joint venture with Fiat, gained access to Fiat‟s diesel engine technology and is likely to gain access to the latter‟s strong overseas distribution network for its passenger cars. Tata Motors is looking to extend this relationship to other segments like pick-ups and MHCVs. The company also plans to expand its global footprint with the launch of „Global Truck‟ and „Global Pick-up‟ in domestic and international markets by 2007-08. Tata Motors plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. The launch of the global truck will mark the entry of the company into developed markets like Europe and the United States. The project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo‟s design was not in sync with the needs of sophisticated European customers. The company has formed a joint venture with Thailand‟s Thonburi,( Exhibit-1) an independent auto assembler, in which Tata Motors will hold a 70% stake. The joint venture will set up a plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the second largest pick-up market in the world, and in other regional markets. The joint venture product is likely to be a part of Tata Motors‟ „Global pick-up‟ plans.
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    Sales and Distributionfor Tata Motors and Fiat in India 2008 onwards On January 3rd, 2008, The Hindu Business Line reported that Ford Motor Company (US) named Tata Motors the "preferred bidder for Ford's British marquees Jaguar and Land Rover ... but a final decision for the sale was yet to be taken". Auto policy of Government of India (GOI) envisions to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010. GOI policy has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality. The terminal life policy for commercial vehicles and move toward international taxing policies linked to age of vehicles, are steps in the right direction which will lead to increased sales for Tata motors Commercial vehicle division. Effect of Government Policy on Tata Motors CV Division Commercial Vehicles segment sector has been at the forefront of the strong showing by the automotive industry over the past few years. Following factors have led to growth in sales:  The cut in excise duty that enabled manufacturers like Tata Motors to reduce prices  The attractive financing offers and freebies enabled by low interest rate policies by Government  the need to transport higher volumes of agricultural and industrial goods  Low interest rates Tata Xover New auto policy considered by Government of India last announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least $50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India.
  • 30.
    Sales and Distributionfor Tata Motors and Fiat in India The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively Global competition Tata Motors have some distinct advantages in comparison to other MNC competitors. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. Tata motors have extensive backward and forward linkages and it is strongly interwoven with machine tools and metals sectors. India is an excellent source for IT based engineering solution for products & process Integration. There are strong supporting industries i.e. auto component industry has world class capabilities. There is huge demand in domestic markets due to infrastructure developments and Tata Motors is able to leverage its knowledge of Indian market. There are favorable Government polices and regulations to boost the auto industry i.e. Incentive for R&D. c. SWOT SWOT Analysis - Tata Motors Limited The company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limited is the largest car producer in India. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people. Strengths  The internationalisation 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
  • 31.
    Sales and Distributionfor Tata Motors and Fiat in India 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 pickup targeted at Central and South America. 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 (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?  One weakness which is often not recognised 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 (see opportunities and strengths). 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.
  • 32.
    Sales and Distributionfor Tata Motors and Fiat in India  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) committee to address potential strategies that will make is operations more sustainable.  The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly 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 globalises 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
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    Sales and Distributionfor Tata Motors and Fiat in India 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 aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.
  • 34.
    Sales and Distributionfor Tata Motors and Fiat in India 2 Distribution Strategy/ Channels of the Tata Motors and Fiat in India Distribution of the product Distribution Method Distribution always takes place through a cycle but it is different with the products. There are several steps which complete the entire cycle. It usually starts with manufacturer then to distributor and then finally reaches in the hand of consumer. This is the main cycle which is used globally. Retail may takes place before it reaches to the consumer. MANUFACTURER – DISTRIBUTOR – CONSUMER 1st distribution channel 1. In this type of channel the company uses its sales representatives to deal with the dealers directly. The dealers place the order through the sales representatives who visit them periodically, and the products are delivered directly from the company. Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showrooms. 2nd distribution channel 2. In this channel of distribution the company appoints distributors on the basis of District/ Population /No of Dealers to be handled by one distributor. The area of operation and its potential is also taken into consideration. Some of the companies make the distributor totally responsible from appointing the dealers to providing after sales service.
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    Sales and Distributionfor Tata Motors and Fiat in India 3rd distribution channel 3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The company appoints distributors to deal with small dealers who order small quantities. With the dealers who have good potential and sales the company deals directly. 4th distribution channel 4. In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.
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    Sales and Distributionfor Tata Motors and Fiat in India DISTRIBUTION NETWORK TATA MOTORS TATA MOTORS TIER I VOLUME RESELLE rR TIER I Distributors System Integrators Own sales force Value Resellers Resellers CUSTOMER
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    Sales and Distributionfor Tata Motors and Fiat in India CHANNEL STRUCTURE Scenario 1 Scenario 2 Company‟s warehouse Customer (Placing Order (Direct billing) Directly) Customer To save the consumer from paying extra amount in the form of taxes and duties a consumer can directly place an order with the Tata Motors warehouse is a pictorial representation of the same, also there maybe a case where all the 4 or any one of the national Dealers have warehouses in Singapore and consumer places order with these distributor then in that case these distributors will place the order to Tata Motors which will have direct billing with the distributors and distributors will have direct billing with the consumer. How do the finished products of your company move from your end to consumer’s end? CONSUMER RESELLER In this distribution network a customer with the small requirement reaches the reseller who buys the product from the big distributors like Ingram, Redington,Tech pacific and iris. How the finished products moves from Tata Motors end to consumer’s end: CONSUMER RESELLER
  • 38.
    Sales and Distributionfor Tata Motors and Fiat in India In this distribution network a customer with the small requirement reaches the reseller who buys the product from the big distributors like Ingram, Redington, Tech pacific and iris. SALES FORCE VALUE RESELLER BUSINESS Tata Motors This model is drawn to show that for named accounts or big business opportunities it is the companies‟ own sales force and system integrators (value resellers), which hunts down the prospective business. Distribution Channels Channel Structure 1. Outside Pune Tata Motor Organization C&F Distributer Retailer Consumer
  • 39.
    Sales and Distributionfor Tata Motors and Fiat in India 2. There are 17 C&F and 50 distributors who directly deal with Tata Motor. Functions performed by different channel member 1. The main functions of different channel members are to supply goods, to achieve targets and to increase sales. 2. One of the main functions of C&F is to achieve the targets assigned to them. They are responsible for all the activities of their areas. 3. The sale of other goods including the sale of its entire outlet is around 150 crores. Selection of Channel members: Channels members are selected if the following facilities are available:1. Godown Facilities 2. Experience sale persons. 3. Van, truck, three-wheelers for transportation. 4. Registered office. 5. Proper computer facility of maintaining accounts. 6. Financially strong. Financial terms and conditions Tata Motor takes the full payment in advance from the distributor and C&F. Most probably it takes Cheque if it is local payment and Demand Drafts if it is central payment. From some distributors Tata Motor also take cash also but always try to avoid it. No credit facilities are given to any distributor or C&F. Tata Motor keep some blank cheques from some distributor and C&F even before taking the order and use the cheque after delivering the goods. Distributor and C&F mostly sale goods on credit basis which varies from one to another. Tata Motor give 6-7% discount to C&F and distributor. No margin is given to them. But they give margin of 10-12% to retailers. Tata Motor is responsible if any goods spoiled or leak on the way in its transport. Tata Motor also give 1-2% discount that takes responsibility of spoiled goods. Mainly these options are given to those who are very far from Raipur and occurred heavy expense of transport to return back the goods. To promote sale Tata Motor give extra discount of 2-3 % where the sale is low.
  • 40.
    Sales and Distributionfor Tata Motors and Fiat in India Order processing Sale persons of C&F and distributors go to the retailers of their areas and bring the order daily. After that they give order in the Corporate Office of Tata Motor in Raipur to the general manager. From corporate office general manager give order in the factory. the order is ready to deliver and confirming from the corporate office, the goods are delivered in the trucks. Order within Raipur and the places near Raipur delivered within 24 hours. Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours. Every distributor and C&F has a fixed day in a week to give order. Warehousing Tata Motor has its own warehouse, which is manage by its own staff. The order of Tata Motor is delivered by truck. Tata Motors pay expenses for transportation from which the Tata Motor deals directly. Sales functioning: Factors taken into account while assigning targets and territories  Population of the area.  Income of the consumers in that area.  Sales during festival seasons.  Area cover. Targets Targets are decided by the owner of the Tata Motor for every distributor and C&F. Every year targets are increased by 10-15%. All the Distributor and C&F have to achieve minimum 90 % of its targets monthly and remaining has to adjust with the next month target. There is a meeting held every month of C&F and distributors with the General Manager of Tata Motor where they find reasons for not achieving the targets and how they overcome by this problem. In this meeting extra benefits are also given for achieving the targets. Responsibilities of the sales person  To supply goods.
  • 41.
    Sales and Distributionfor Tata Motors and Fiat in India  To make new customers.  To bring the order from retailers of their area.  To promote Tata Motor Tata Car.  To report about the sale. Performance Appraisal The manager on the targets basis checks the performance of the sales person. The performance appraisal is check on monthly basis. It is check as regard to achieve target. The sales persons give daily report to the manager and on that basis the performance is checked and new target is assigned. Functions performed by different channel member  The main functions of different channel members are to supply goods and give monthly report in the organization.  The channel members also supply goods in the outlets of the Tata Motor India.  They frequently visit outlet of Tata Motor India within Raipur and outside Raipur to check the sales and whether the target is achieving or not.  They also promote Tata Motor India Tata Car.  The main role of showroom is to supply goods to the area that are assign to them.  They are responsible for achieving the target assign to them. Selection of Channel members: Channels members are selected if the following facilities are available: Financially strong.  Transport facilities.  Registered office.  Godown Facilities. Selection of channel member for the Franchise  Asked around 1.5 crore for franchise  Space required – 12000 Sq feet  Preference given in Mall
  • 42.
    Sales and Distributionfor Tata Motors and Fiat in India  Transport Facilities  Godown available. Financial terms:  In Raipur the Sales of Tata Motor India is done mainly on credit basis. The credit time is not same for the entire distributor. The Finance department of the company decides the credit period of the Distributor after consulting by sale manager.  Outside Raipur the payment is received at the time of delivered of goods. Maximum 15 days allowed paying the payment.  Extra benefit of 1-2% given to distributors who have achieved their annual target. Order processing  From the main office the order is passed in the factory where production manager note down the order and report back to the office when the order is ready.  Order within Raipur and the places delivered within 24 hours.  Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours. Warehousing:Tata Motor India has its own warehouse, which is manage by its own staff. Sales Distributions Factors taken into account while assigning targets and territories  Targets achieve last year.  Area covered by the Distributors.  Sale made during Festivals seasons.  Locations (for outlets). Targets The sales manager decides targets of the distributors. There is an increase in target of 510% annually both for distributor. The targets of both are checked quarterly by the sales manager and if the target are not seen to be achieve then Tata Motor India sent their own sales person and try to increase the sales. Responsibilities of the sales person
  • 43.
    Sales and Distributionfor Tata Motors and Fiat in India  To supply goods to distributors and in outlets.  To make new customers.  To bring the order from retailers of their area.  To promote Tata Motor India Tata Car.  To report about the sale and steps taken to increase the sale. Performance Appraisal The sales manager checks the performance of the sales person on target basis and the area covered. The performance appraisal is check on quarterly basis and on that basis there Sales Manager assigns new target. Comparison of Sales and distribution in Tata Motor and Tata Motor India  In the distribution channels both the organization have same distribution channel. But in other parts of the country Tata Motor distribute the Tata Car through C&f and Tata Motor India distribute through Super. But the main functions of both are more or less same.  Tata Motor doesn‟t give franchise but Tata Motor India does and offer around 1-2 crores for that.  Tata Motor take the payment in advance but Tata Motor India takes payment at the time of delivering of the goods and also gives credit to some dealers.  Both have their own warehouses, which are manage by their own staff.  Tata Motor increases the annual target of Distributor and C&f by 10-15% whereas Tata Motor India increases by 5 – 10%.  The owner of Tata Motor checks the annual target of all the distributors and C&F whereas in Tata Motor India Sales manager checks it.  The performance of the Sales person is check on monthly basis in Tata Motor whereas on quarterly basis in Tata Motor India.
  • 44.
    Sales and Distributionfor Tata Motors and Fiat in India Research Methodology 3.1 Types of research Based on the objectives of the study, there are two types of Research:  Exploratory Research- Exploratory research is conducted when one is seeking insights into the general nature of a situation, the possible decision alternatives, and the relevant variables that need to be considered. While conducting my study, I used exploratory research, which was flexible and was aimed at identifying all the attributes that provides satisfaction to customers before and after buying a vehicle. I undertook an intensive review of the automobile industry in India, and screened some issues which I as a researcher felt needed more clarification or study.  Descriptive research- My exploratory research conducted brought out a host of factors which affect the customer buying attitude. These factors were then filtered to form a set of the most important alternatives, which might affect a consumer‟s and a retailer‟s decision regarding the purchase of vehicle and which brand they prefer. The purpose was to find an accurate snapshot of the market environment of automobiles. 3.2 Data collection procedure used in my research : Pilot Study After constructing the questionnaire, the pilot survey was conducted among 6 individuals from the sales force of the company to find out the errors, if any.
  • 45.
    Sales and Distributionfor Tata Motors and Fiat in India Questionnaire The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is its reliance on verbal responses to questions, written or oral. The researchers found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researchers to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 minutes. The questionnaires were personally administered. As far as possible, the questionnaires were filled by me and not given to the respondents. Field work Field work is a general descriptive term for the collection of raw data direct from the consumers, as opposed to secondary research. It plays an important role in collecting the data. My sample size was 157. In my research, I had to take the feedback from the existing customers of Tata Motors to know about their satisfaction level and the areas in which the company was lagging. Some important points which I kept in mind while doing the fieldwork Making the respondents comfortable before questioning them by introducing ourselves as students of Amity Business School and ensuring the respondent that all information collected is only for academic purpose and will be kept absolutely confidential.  Ensuring that we fill the questionnaires ourselves.  Not leading a person into any preconceived notion.  Not influencing the respondents‟ answers in any way/form.  Using simple language, so that the technical language does not intimidate the respondent.
  • 46.
    Sales and Distributionfor Tata Motors and Fiat in India 3.3 Data collection techniques Primary data  Pilot Study  Questionnaire Secondary data It refers to the already existing data. I collected them by following methods –  Internet  Books  Published Articles  Journals  Newspaper Articles Data Interpretation Tools Following software‟s has been used during analysis and compiling of data.  SPSS Software  Microsoft Excel  Microsoft Word
  • 47.
    Sales and Distributionfor Tata Motors and Fiat in India 4. FINDINGS AND ANALYSIS Q 1) Which of the following best describes your line of work? Cumulative Frequency Valid Percent Valid Percent Percent services 36 22.9 22.9 22.9 business 66 42.0 42.0 65.0 student 27 17.2 17.2 82.2 Taxi services 28 17.8 17.8 100.0 157 100.0 100.0 Total
  • 48.
    Sales and Distributionfor Tata Motors and Fiat in India From this we interpret that most of the customers in that area are business people followed by service class. The housewives do not come to the showroom for the service or purchase of cars. Q2) What parameters do you seek in a car before buying Cumulative Frequency Valid Percent Valid Percent Percent brand popularity 19 12.1 12.1 12.1 Performance 69 43.9 43.9 56.1 looks & style 69 43.9 43.9 100.0 157 100.0 100.0 Total
  • 49.
    Sales and Distributionfor Tata Motors and Fiat in India The customers look for performance and looks& style in a car before purchasing it. Brand name does not play a vital rule in it. Q3) how long have you been associated with tata motors Frequency Valid Percent Valid Percent Cumulative Percent 0-1 18 11.5 11.5 11.5 1-3 54 34.4 34.4 45.9 3-5 66 42.0 42.0 87.9 more than 5 19 12.1 12.1 100.0 157 100.0 100.0 Total Q4) Which company's car do you possess Frequency Valid Percent Valid Percent Cumulative Percent Tata 106 67.5 67.5 67.5 Fiat 51 32.5 32.5 100.0 Total 157 100.0 100.0 Most of the customers prefer buying Tata cars over Fiat .
  • 50.
    Sales and Distributionfor Tata Motors and Fiat in India Q 5) If rebuying would you select Tata of Fiat Frequency Valid Percent Valid Percent Cumulative Percent Yes 127 80.9 80.9 80.9 No 30 19.1 19.1 100.0 157 100.0 100.0 Total The customers are satisfied with their cars . this is the reason they can rebuy this company‟s car . Q 6) What parameter important for rebuying Frequency Valid Percent Valid Percent Cumulative Percent post sales service 43 27.4 27.4 27.4 Mileage 68 43.3 43.3 70.7 maintenance cost 46 29.3 29.3 100.0 157 100.0 100.0 Total Of all the customers of TATA motors , most of them consider mileage of the car as an important parameter for rebuying decision.
  • 51.
    Sales and Distributionfor Tata Motors and Fiat in India Q7a) rate tata motors on following parameter knowledgeable sales person Frequency Valid Percent Valid Percent Cumulative Percent 2 3 1.9 1.9 1.9 3 33 21.0 21.0 22.9 4 108 68.8 68.8 91.7 5 13 8.3 8.3 100.0 157 100.0 100.0 Total The salesperson at the company are rated fairly knowledgeable. Q7 b) employees spend enough time with you before sales Frequency Valid Percent Valid Percent Cumulative Percent 3 24 15.3 15.3 15.3 4 121 77.1 77.1 92.4 5 12 7.6 7.6 100.0 157 100.0 100.0 Total The customers feel that the employees spend sufficient time before the sales
  • 52.
    Sales and Distributionfor Tata Motors and Fiat in India Q7b) employees spend enough time with you after sales Frequency Valid Percent Valid Percent Cumulative Percent 2 6 3.8 3.8 3.8 3 27 17.2 17.2 21.0 4 115 73.2 73.2 94.3 5 9 5.7 5.7 100.0 157 100.0 100.0 Total The customers also feel that the employees spend good enough time even after sales is conducted. Q7 c) Spare parts availability Frequency Valid Percent Valid Percent Cumulative Percent 2 15 9.6 9.6 9.6 3 39 24.8 24.8 34.4 4 84 53.5 53.5 87.9 5 19 12.1 12.1 100.0 157 100.0 100.0 Total
  • 53.
    Sales and Distributionfor Tata Motors and Fiat in India The customer has a mixed opinion to the availability of the spare parts at the service center .But still the majority has a positive view to it that the spare parts are readily available. Q7d) Is the Vehicle in good condition at the time of delivery Frequency Valid Percent Valid Percent Cumulative Percent 3 27 17.2 17.2 17.2 4 109 69.4 69.4 86.6 5 21 13.4 13.4 100.0 157 100.0 100.0 Total The vehicle delivered at the time of ownership and after sales is presented in good condition. Representation of anything is an important feature. It leaves a positive impression on the customers. Q7e) Are the prices affordable Frequency Valid Percent Valid Percent Cumulative Percent 3 27 17.2 17.2 17.2 4 106 67.5 67.5 84.7 5 24 15.3 15.3 100.0 157 100.0 100.0 Total
  • 54.
    Sales and Distributionfor Tata Motors and Fiat in India The prices of the service, spare parts are rendered affordable by the customers. It is an important parameter because all the other companies charge high values on spare parts. The customers become hesitant in getting their cars serviced at the authorized service center. They rather look for cheaper options elsewhere. Q7f) Are there any attractive discounts offered Frequency Valid Percent Valid Percent Cumulative Percent 2 21 13.4 13.4 13.4 3 124 79.0 79.0 92.4 4 9 5.7 5.7 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total This analysis states that there are less attractive discounts offered by the company. This happens in a condition when a company is following low pricing strategy. The company has not much scope to offer discounts. This sometimes can even go against you. There is tendency among people to cherish the discounts that is offered to them. But in the long run the strategy is beneficial. Q7g) Is the décor of the waiting area pleasing Frequency Valid Percent Valid Percent Cumulative Percent 2 51 32.5 32.5 32.5 3 88 56.1 56.1 88.5 4 15 9.6 9.6 98.1 5 3 1.9 1.9 100.0
  • 55.
    Sales and Distributionfor Tata Motors and Fiat in India Is the décor of the waiting area pleasing Frequency Valid Percent Valid Percent Cumulative Percent 2 51 32.5 32.5 32.5 3 88 56.1 56.1 88.5 4 15 9.6 9.6 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total This is the point that the company should improve on. The customers perceive the décor of the waiting area not up to the standards. The company should give a serious thought on improving this .After giving the car for service the customers wait for their cars in the waiting lounge. Q7h) Is post sale follow ups done regularly Frequency Valid Percent Valid Percent Cumulative Percent 1 3 1.9 1.9 1.9 2 9 5.7 5.7 7.6 3 45 28.7 28.7 36.3 4 97 61.8 61.8 98.1 5 3 1.9 1.9 100.0 157 100.0 100.0 Total Post sales follow up is done on regular basis as seen from the analysis Q7i) Are the complaints responded quickly
  • 56.
    Sales and Distributionfor Tata Motors and Fiat in India Cumulative Frequency Valid Percent Valid Percent Percent 1 9 5.7 5.7 5.7 2 6 3.8 3.8 9.6 3 34 21.7 21.7 31.2 4 93 59.2 59.2 90.4 5 15 9.6 9.6 100.0 157 100.0 100.0 Total The complaints are duly attended and responded quickly by the employees. The mean value of the sample is 3.63 which is above average . Q7 j) Is the service at Tata Motors excellent Cumulative Frequency Valid Percent Valid Percent Percent 1 3 1.9 1.9 1.9 2 9 5.7 5.7 7.6 3 27 17.2 17.2 24.8 4 103 65.6 65.6 90.4 5 15 9.6 9.6 100.0 157 100.0 100.0 Total When the vehicle is given for servicing, the customers feel that their vehicles have been properly taken care of. All the complaints have been looked after. The mean value comes to be 3.75 Q7k)
  • 57.
    Sales and Distributionfor Tata Motors and Fiat in India Are all the commitments fulfilled Cumulative Frequency Valid Percent Valid Percent Percent 1 6 3.8 3.8 3.8 2 12 7.6 7.6 11.5 3 45 28.7 28.7 40.1 4 70 44.6 44.6 84.7 5 24 15.3 15.3 100.0 157 100.0 100.0 Total The mean value is 3.6. Majority of the customers perceive that the commitments by the company are fulfilled. Q7 l) Do you find the car value for money Cumulative Frequency Valid Percent Valid Percent Percent 2 6 3.8 3.8 3.8 3 24 15.3 15.3 19.1 4 97 61.8 61.8 80.9 5 30 19.1 19.1 100.0 157 100.0 100.0 Total The customers‟ satisfaction is perceived by the parameter whether they find their car value for money. If this is not the case then the customer is dissatisfied and does not consider the car for re-buying. But this is not case with the cars of Tata motors, the customers find the car value for money. The mean is 3.96 Q 8) payment procedure preference
  • 58.
    Sales and Distributionfor Tata Motors and Fiat in India Cumulative Frequency Valid Percent Valid Percent Percent cash 30 19.1 19.1 19.1 cheque 27 17.2 17.2 36.3 finance 100 63.7 63.7 100.0 Total 157 100.0 100.0 Most of the customers prefer purchasing a car by the method of finance. So the company should have links with various finance companies at their respective dealership showroom for the convenience of customers. The easy the method of financing, more customers are attracted to the company than their competitors. It gives the company an edge over its competitors. Q 9)
  • 59.
    Sales and Distributionfor Tata Motors and Fiat in India Are you aware of following facilities offered :Tata Motors Insurance Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent There are various extra facilities that are provided to the customers for extra benefits and convenience. One of them is Tata Motors Insurance. It is a cashless insurance in which during the time of claim, the customer does not have to pay cash and latter get it reimbursed. The majority of the customers were aware of this facility which means that sales force of the company is efficient . Extended warranty Cumulative Frequency Valid YES Percent 157 100.0 Valid Percent 100.0 Percent 100.0 Here a complete sample knew about the extended warranty facility offered by the company which is a good sign. True value Cumulative Frequency Valid Percent Valid Percent Percent yes 133 84.7 84.7 84.7 no 24 15.3 15.3 100.0 157 100.0 100.0 Total
  • 60.
    Sales and Distributionfor Tata Motors and Fiat in India This was the facility primarily started in the market by Maruti company. The customers used to face various problems while selling off their cars. So to provide convenience to the customers the true value concept came into existence. It was a one stop solution for the customers to get the best value for their used cars. The customers have a confidence that he will not be cheated. This adds to extra benefits offered by the company to keep the customers. They give good exchange offers also if you purchase another car of the same company. The majority of the customers knew about it. Tata finance Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent The company also introduced the finance counter for the customers to avail car loans at the dealership showroom. Everything is at customer‟s convenience. Customer does not has to run here and there for getting the financing done. The customers were aware of it. Autocard Cumulative Frequency Valid Percent Valid Percent Percent yes 15 9.6 9.6 9.6 no 142 90.4 90.4 100.0 Total 157 100.0 100.0 It is a facility in which a customer get points for every 100 rupees spent with the company . These points can later be redeemed. These are also applicable for various
  • 61.
    Sales and Distributionfor Tata Motors and Fiat in India offers during the year. The customers were not aware about this facility of Tata Motors. The company should make an extra effort to familiarize this facility to the customers. Genuine accessories Cumulative Frequency Valid yes Valid Percent Percent 151 96.2 96.2 96.2 6 3.8 3.8 100.0 157 100.0 100.0 no Total Percent The customers should use genuine accessories. There are many duplicate product that are available in the market. People use them to save cost. But the customers be made aware about the negative effects that these duplicate products have on the efficiency of the car. These lead to early wear and tear. It can also prove fatal. The customers were aware of the fact to use genuine accessories. Q 10) Overall opinion of tata motors Cumulative Frequency Valid very bad Percent Valid Percent Percent 3 1.9 1.9 1.9 Bad 12 7.6 7.6 9.6 neither bad nor good 21 13.4 13.4 22.9 103 65.6 65.6 88.5 18 11.5 11.5 100.0 Good very good
  • 62.
    Sales and Distributionfor Tata Motors and Fiat in India Overall opinion of tata motors Cumulative Frequency Valid very bad Percent Valid Percent Percent 3 1.9 1.9 1.9 Bad 12 7.6 7.6 9.6 neither bad nor good 21 13.4 13.4 22.9 103 65.6 65.6 88.5 18 11.5 11.5 100.0 157 100.0 100.0 Good very good Total One-Sample Test Test Value = 3 95% Confidence Interval of the Difference T Overall opinion of Tata 11.729 df Sig. (2-tailed) 156 .000 Mean Difference .771 Lower Upper .64 motors The mean value is 3.77. The opinion of customers on Tata motors is towards the positive side. In t-test we have seen the mean difference to be .771. The customers are happy with their car and have a good experience. .90
  • 63.
    Sales and Distributionfor Tata Motors and Fiat in India Q 11) would you recommend tata motors to anybody else Cumulative Frequency Valid Percent Valid Percent Percent Yes 127 80.9 80.9 80.9 No 21 13.4 13.4 94.3 9 5.7 5.7 100.0 157 100.0 100.0 Can't say Total Most of the customers are ready to take responsibility and recommend the cars to their family and friends. This is the best method of advertisement i.e. the word of mouth. It does not cost the company and is most influential. So having such customers is advantageous to the company. The company should not loose such customers by
  • 64.
    Sales and Distributionfor Tata Motors and Fiat in India dissatisfying them. The company has an advantage by having a great deal of these type of customers. Q 12) Gender Cumulative Frequency Valid male female Total Percent Valid Percent Percent 145 92.4 92.4 92.4 12 7.6 7.6 100.0 157 100.0 100.0 Most of the customers that come to the showroom are males. Even if the cars are being bought for females, the males come on their behalf. Q 13) Age Cumulative Frequency Valid Percent Valid Percent Percent 18-25 36 22.9 22.9 22.9 26-35 67 42.7 42.7 65.6 36-50 48 30.6 30.6 96.2 6 3.8 3.8 100.0 157 100.0 100.0 Above 51 Total
  • 65.
    Sales and Distributionfor Tata Motors and Fiat in India People of all age groups come to the showroom but the majority are of age group 26-35 followed by 36-50 age group . Q 14) Income group (in lacs) Cumulative Frequency Valid Percent Valid Percent Percent below 3 30 19.1 19.1 19.1 3-6 28 17.8 17.8 36.9 6-9 63 40.1 40.1 77.1 9-12 27 17.2 17.2 94.3 9 5.7 5.7 100.0 157 100.0 100.0 Above 12 Total
  • 66.
    Sales and Distributionfor Tata Motors and Fiat in India People of all income groups come to purchase cars. It has become a necessity rather than luxury. There are all segments of cars available according to the need. gender * Which company's car do you possess Crosstabulation Count Which company's car do you possess Tata gender male female Total Fiat Total 100 45 145 4 8 12 104 53 157
  • 67.
    Sales and Distributionfor Tata Motors and Fiat in India From this we can state that males prefer buying the car of Tata whereas female prefer buying car of FIAT. gender * What parameters do you seek in a car before buying Crosstabulation Count What parameters do you seek in a car before buying brand popularity gender Male Female Total performance looks & style Total 19 66 60 145 0 3 9 12 19 69 69 157
  • 68.
    Sales and Distributionfor Tata Motors and Fiat in India Males look for performance as a parameter in their decision making to purchase cars where as female prefer looks and style of the car as a parameter before purchasing. gender * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales maintenance service gender male female Total mileage cost Total 37 65 43 145 6 3 3 12 43 68 46 157
  • 69.
    Sales and Distributionfor Tata Motors and Fiat in India Males prefer mileage as a parameter for re-buying followed by maintenance cost and then post sales service where as females look for post sales service as an important parameter for making re-buying decision. Which of the following best describes your line of work? * Which company's car do you possess Crosstabulation Count Which company's car do you possess Tata Which of the following best Fiat Total 6 36 business 32 34 66 17 10 27 Taxi services Total 30 student describes your line of work? services 25 3 28 104 53 157 People of service class possess more of Tata cars than FIAT. Customers from business class prefer FIAT cars over Tata. Students also have an inclination towards Tata cars. Taxi owners prefer Tata cars because of its mileage.
  • 70.
    Sales and Distributionfor Tata Motors and Fiat in India Which of the following best describes your line of work? * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales maintenance service Which of the following best mileage cost Total 18 12 36 business 25 28 13 66 9 3 15 27 Taxi services Total 6 student describes your line of work? services 3 19 6 28 43 68 46 157
  • 71.
    Sales and Distributionfor Tata Motors and Fiat in India Customers of service class give more importance to mileage than maintenance cost followed by post sales service. Customers from business class have an almost equal weightage for mileage and post sales service but mileage has an upper hand. The least important parameter as maintenance cost. In case of students, maintenance cost is the prime parameter followed by post sales service and mileage. In case of taxi, mileage plays an important role followed by maintenance cost.
  • 72.
    Sales and Distributionfor Tata Motors and Fiat in India Age * What parameters do you seek in a car before buying Crosstabulation Count What parameters do you seek in a car before buying brand popularity Age performance looks & style Total 18-25 0 6 30 36 26-35 7 33 27 67 36-50 12 27 9 48 0 3 3 6 19 69 69 157 Above 51 Total Customers from the age group 18-25 goes for looks & style of the car for buying it. From the age group 26 and above, they give more importance to performance of the car.
  • 73.
    Sales and Distributionfor Tata Motors and Fiat in India Age * What parameter important for rebuying Crosstabulation Count What parameter important for rebuying post sales service Age mileage maintenance cost Total 18-25 12 3 21 36 26-35 13 41 13 67 36-50 15 21 12 48 3 3 0 6 43 68 46 157 Above 51 Total In making their re-purchase decision, customers from age group 18-25 give importance to maintenance cost than post sales service and lastly to mileage.
  • 74.
    Sales and Distributionfor Tata Motors and Fiat in India Where as all the customers from other age groups give preference to mileage in rebuying. Which of the following best describes your line of work? * payment procedure preference Crosstabulation Count payment procedure preference cash Which of the following best cheque finance Total 6 0 30 36 business 24 27 15 66 student 0 0 27 27 Taxi services describes your line of work? services 0 0 28 28 30 27 100 157 Total Customers from service sector, students and taxi service providers prefer finance as a mode of payment for the purchase of cars. Where as business class prefer payment to be made either by cash or cheque.
  • 75.
    Sales and Distributionfor Tata Motors and Fiat in India Which company's car do you possess * Spare parts availability Crosstabulation Count Spare parts availability 2 Which company's car do you Tata possess Total Fiat 3 4 5 Total 3 15 76 10 104 12 24 8 9 53 15 39 84 19 157 Customers of Tata have given higher rating to the availability of the spare parts than that of FIAT. The spare parts of FIAT were not available at all times.
  • 76.
    Sales and Distributionfor Tata Motors and Fiat in India Income group (in lacs) * payment procedure preference Crosstabulation Count payment procedure preference cash Income group (in lacs) cheque finance Total 0 0 30 30 3-6 0 3 25 28 6-9 21 6 36 63 9-12 9 10 8 27 Above 12 Total below 3 0 9 0 9 30 28 99 157
  • 77.
    Sales and Distributionfor Tata Motors and Fiat in India Customers below the income of 3 lacs finance their vehicles. From 3-6 lacs also customers go for financing scheme. In the group 6-9 lacs financing is still the majority but a great deal of rise in cash mode of payment is seen. In 9-12 lacs cash and cheque mode of payment is seen. Customers above the income group of 12 lacs prefer making the payment by cheque and do not prefer financing their vehicles. 5. CONCLUSION & RECOMMENDATIONS  Fiat car is preferred more by females rather than males. Business class also has an inclination towards Fiat more.  The décor of the waiting lounge is rated less by the customers, the company should take measures to improve on it.  The availability of spare parts of Fiat cars is less whereas of Tata are readily available. So the company should pay more attention to it.  Most of the customers purchase the cars by mode of financing. There are many customers who after purchasing the cars are not able to pay EMI. So they are considered defaulters. There are many such cases of defaulters. The finance company has be vigilant as to who to give the consent or not.  There are many enquiries which are cold enquiries. The sales person has to make an extra effort to convert the cold and warm enquiries to hot enquiries. Due to negligence of sales man there are many loss of customers Sales Man
  • 78.
    Sales and Distributionfor Tata Motors and Fiat in India  Should be well versed with the pay scale structure.  Incentive slabs should be formulated to endure them for more sales.  Sales man should be friendlier and solve the problems from both the consumer‟s and company's point of view.  Should be motivated to open new outlets, keeping in mind the incentives being provided on it.  Sales man should clear the schemes as soon as possible.  Should ensure that full product range is available with the ready stock.  Sale man should be energetic, be patients, quick decision maker, problems solver and ready to do any kind of work related to his job profile. Stockiest  To maintain more friendly relationship with the sales man and retailers.  Universal launch of scheme along with the arrangement with the company.  Should have enough of display material for the outlets. Sales Executive  To attend to complaints/problems being recorded by sales man as soon as possible.  To maintain cordial relationship with the sales man.  Sales Executive should attend all key accounts and regular visit should be made every week. He should also appreciate them for their good work.  Random /surprise checks to be made at the outlets to access the working of sales man and whether the schemes are duty fully given to the retailers irrespective of the category of the outlets. To increase the coverage of outlets 1) The outlets, which have stopped purchasing from distributors due to any kind of dispute between stockiest and the retailer, should be solved by the timely action of sales executive. 2) The company should come out with suggestion Letter's that should be given on a quarterly basis to all the retailer's and stockiest, so that the sales Executive handling a particular belt is aware of the problems, grudges, grievances of the retailers. This will
  • 79.
    Sales and Distributionfor Tata Motors and Fiat in India help him in taking timely action, which will save the matters from aggravating further.
  • 80.
    Sales and Distributionfor Tata Motors and Fiat in India 5.2 REFLECTIONS ON WHAT HAS BEEN LEARNED DURING THE INTERNSHIP EXPERIENCE It was great opportunity for me to do my internship from TATA Motor.  I got a project which gave me the opportunity to meet the various people in the corporate world. I could understand the working culture of corporate as well as government offices. Before this I never visited such big organizations.  Making plan for the next day and finding the concern department and person allowed me to increase my communication ability, written as well as verbal.  My confidence to meet people has tremendously gone up. Today I have that much confidence that I can meet to any big person in any organization.  My boss also helped me very much to learn about corporate world. How to prepare the proposals and how to give the company offer all I learnt from my boss.  I also attended the customer demonstration which gave me the knowledge about how the customer can be convinced, how there queries are handled.  I also learnt very small-small things in the organization which is very necessary in any flat organization like photocopying; Fax the document which I never know before.
  • 81.
    Sales and Distributionfor Tata Motors and Fiat in India REFERENCES  2005. Implementation of the VM fuel strategy presses ahead. [online] Available on: http://media.vw.com/article_display.cfm?article_id=9664 [Accessed on 27th March 2006]  2006. Car and Driver. Fighting for street Credit. US: Hachette Filipacchi Media.  BBC publisher, 2005. Top Gear. BBC publisher, 2006. Top Gear. London: BBC publisher. Available on : http://www.topgear.com/drives/A4/ES/new/ [Accessed on 24th March 2006]  BITD, 2005. European Union. The International Customs Journal, 14(26), pp. 1493  BUY USA, 2006. The UK Automotive Parts Aftermarket. A Market Research report, September, pp. 1-8  Burt, T. (2001), „Tata motors set to expand in Spain‟, Financial Times  CAR BUYERS GUIDE, 2006. There are 20 CBG Partner Tata motors Dealers in India. [online] Available from: http://www.cbg.ie/dealer_list.asp?Make= Tata motors [Accessed on 15th May 1006]  CARL R. ANDERSON, CARL P. ZEITHAML, 1984. Academy of Management Journal, 27(1), pp. 5-24.  CAR WARRANTY DIRECT, 2006. Your free Quote. [online] Available from: http://www.carwarrantiesdirect.com/ [Accessed on 14th May 2006]  CARZONE.IE, 2006. Find your nearest dealer.[online] Available from: http://www.carzone.ie/Dealers/ http://www.carzone.ie/Dealers/index.cfm?fuseaction=Garages&CountyID=10 [Accessed on 14th May 2006]
  • 82.
    Sales and Distributionfor Tata Motors and Fiat in India  CHARITAS, INC., 2006. 66PRIZM marketing segments. [online] Available from: http://www.charitas.com/claritas/Default.jsp?ci=3&si=4&pn=prizmne_segments [Accessed on 12th may 2006]  COS, 2006. Statistics: National Accounts [online]. Available from: http://www.cso.ie/statistics/nationalacc.htm [Accessed 21 March 2006]  Foundry Trade Journal, 2001. Sourcing Strategy of VW. [online] Available on: http://www.bussiness.com/periodicals/article/826786.html. [Accessed on 27th March 2006]  Kotler P. and Armstrong G., 2004. Principles of Marketing 10th ed. New Jersey: Person Education  SIMI, 2006. Pre Budget Submission 2006 [online]. Available from: http://www.simi.ie/showcontent.asp?SubsectionID=12 [Accessed 21 March 2006]  SIMI, 2006. SIMI Statistical Service New Registrations February 2006 [online]. Available from: [Accessed 22 March 2006]  SPRAY, C., 2006. Sunday Independent. Jetta‟s all revved up with no place to go. March 26, 2006.  Team F., 2005. EU GDP per capita in 2004: India 40% above average [online]. Available from: http://www.finfacts.com/Indiabusinessnews/publish/article_10002088.shtml [Accessed 19 March 2006]  WIKIMEDIA, 2006. List of Tata motors factories. [online] Available from: http://en.wikipedia.org/wiki/List_of_ Tata motors _factories [Accessed on 15th May 2006]  WHITWORTH, B., 2002. Company Car. London: World Media Ltd. Available on: http://www.findarticles.com/particles/mi_momxi/is_4_22/ai_85482104. [Accessed on 25th March 2006]  http://www.carzone.ie/ [Accessed on 28th March 2006]  http://www.bmwworld.com/bmw/purves.html [Accessed on 26th March 200]
  • 83.
    Sales and Distributionfor Tata Motors and Fiat in India ANNEXURE Q.1) Which of the following best describes your line of work : a) Service b) Business c) Student e) Taxi Services Q.2) What parameters do you seek in a car before buying a) Brand Popularity b) Performance Q.3) d) Housewife c) Looks & Style How long have you been associated with TATA Motors? a) 0-1 Year b) 1-3 Year c) 3-5 Year d) More than 5 yrs Q.4) Which company‟s car do you possess? a) Tata b) Fiat Q.5) If you need to buy a new or another car, would you again select the Tata or Fiat Brand? a) Yes b) No Q.6) What parameter is important for influencing your re-buying decision? a) Post Sales services rendered by the company b) Mileage of the car c) Maintenance costs incurred Q.7) How would you rate TATA Motors on the following parameter? i) Are the sales person knowledgeable ii) Do the employees spend enough time with you: 1 2 3 4 5
  • 84.
    Sales and Distributionfor Tata Motors and Fiat in India Before sales After sales iii) Are the spare parts available iv) Is the Vehicle in good condition at the time of delivery v) Are the prices affordable vi) Are there any attractive discounts offered vii) Is the décor of the waiting area pleasing viii) Were you offered a test drive ix) Is post sale follow ups done regularly x) Are the complaints responded quickly xi) Is the service at Tata Motors excellent xii) Are all the commitments fulfilled xiii) Do you find the car value for money Q.8) What type of payment procedure do you prefer? a) Cash b) Cheque c) Demand Draft d) Finance Q.9) Are you aware of the following facilities provided by Tata Motors? i) FACILITIES Tata Motors insurance ii) iii) iv) v) Extended warranty True value Tata finance Auto card Yes No
  • 85.
    Sales and Distributionfor Tata Motors and Fiat in India vi) Genuine accessories Q.10) What is your overall opinion about Tata Motors? Very Bad 1 Bad Neither Bad nor Good 3 2 Good 4 Very Good 5 Q.11) Would you recommend Tata Motors to anybody else? a) Yes b) No c) Cant say Gender: Male Female Age: a) Below 18 Income group (in lakhs): a) Below 3 b) e) Above 12 Name: b) 18-25 c) 26-35 b) 3-6 c) 6-9 d) 36-50 e)51&above d) 9-12 _____________________________ Contact no: ____________________________ Address: ____________________________________________________