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Tata Motors
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Preface
The underlying aim of the seminar on contemporary issue as an integral part of MBA program is to provide the students with practical aspects of the organization working environment. Such type of presentation helps a student to visualize and realize about the congruencies between the theoretical learning in the premises of college and actual followed by the organization. It gives the knowledge of application aspect of the theories learnt in the classroom. The seminar project in TATA MOTORS is a complete experience in itself, which provide me with the understanding. This has become as inspirable of my knowledge of management being learned in MBA program.
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Table of contents
Executive summary Introduction Objective of the study Scope of the study Evolution of automobile industry Segmentation of Automobile Industry History Production area Vision and Mission Statement Values Tata motors in international market Tata Daewoo Commercial Vehicle Tata novus World truck Future plans
Product profile
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EXECUTIVE SUMMARY
Focus of the research is to Developing the understanding of the consumers preferences towards the various heavy vehicle options
Company Profile
Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. IT is the leader by far in commercial vehicles in each segment, and among the top three in passenger in vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the worlds second largest bus.
Dealer Profile
Cargo Motors Limited was established by late Shri Y.P. Nanda, founder Chairman & Managing Director of Cargo Motors. He started his career in the Automobile Industry around 1948 and in 1959 seeing his enterprising abilities Telco awarded a Dealership to the Company for Sales and Service of Tata Vehicles, for the remote area of Kutch at Gandhidham in Gujarat. Cargo Motors continued to set landmarks for the automobile trading wherever Cargo Motors' business expanded be it Gujrat, Punjab, Rajasthan or Delhi & NCR.
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The study will be helpful to know the consumer behavior towards the TATA Motors and nature of heavy vehicle industry.
Primary Objective: To find out the consumer preference criteria for heavy commercial vehicles and consumers perception & attitude towards TATA Motors.
Secondary Objective To find out the various options people consider for heavy vehicles To determining the factors that will help to achieve customer satisfaction.
Research methodology
1. Research design 2. Sampling plan 3. Instruments of collection of data 4. Data analysis and interpretation
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Conclusion
Indian HCV users are more concern about resell value, insurance facilities and brand name. Price and fuel efficiency are other parameters of buying HCV. Tata Motors has made a great brand image in the mind of people. People are highly satisfied with Tata Motors. High resell value and availability of spare parts and service center are major advantages of Tata Motors. We can say Tata Motors is in the position of Market leadership. But to sustain this position it need to make strong strategies to fight with upcoming players. At the same time it should make some new plans to fight with existing players.
Limitation
Within the limit period of time it is too difficult to cultivate in a whole market. Cost is also a major factor of pushing back to us in our research.
Recommendation
The price of Tata Motors vehicle is higher as compare to Ashok Leyland. So company can design some low cost HCV to fight the low cost rivals. Spare parts of Tata HCV are costlier so customers buy low quality parts. Company should work on higher price of spare parts.
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INTRODUCTION
The purpose of this training was to have practical experience of working within the organization, in the field of marketing and to have exposure to the important management practices in field of marketing. While writing this report the language has been keep simple and the entire Discussion has been logical and has coherent outlines. The main motto of the Project work was Buying behavior of heavy vehicle users and their perception and experience about Tata Motors for Tata Motors. It includes market research of consumer preference criteria for heavy commercial vehicles and in detail consumer (Satisfaction) responses analysis, by surveying number of consumers. The project report is divided into two parts:
1) First part consists market research for finding consumers preferences
towards the various heavy vehicle options and their level of satisfaction from Tata Motors.
2)
Second part consist some assignments like gathering data (Fleet information) from various HCV owners, knowing their future possibilities to find out potential customers and convince them to preferred Cargo Motors ( Authorized dealer of Tata Motors). For that purpose attended 2 days training programme organized by MERCURI GOLDMANN (INDIA) Pvt. Ltd. for the marketing people of Tata Motors on How to make an effective sales call.
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The study will also be helpful to know the consumer behavior towards the TATA Motors and nature of heavy vehicle industry.
Primary Objective:
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To find out the consumer preference criteria for heavy commercial vehicles and consumers perception & attitude towards Tata Motors.
Secondary Objective: To study the consumers buying behavior for buying or rejecting heavy vehicles.
To find out consumers expectations for authorized dealers and service stations.
Understand the marketing system of HCV in Rural Market. To compare Tata Motors with its competitor. Market Surveyed to find the demand of Tata Vehicles
The result of this research would help the company and the researcher to have a better understanding about the consumer behavior towards heavy commercial vehicle.
The study helps the company to know that what is the major parameters consumer looks before buying a vehicle.
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The study also enables the company to focus on the consumers preferences and expectations of the product which they offer.
The study also helpful to know that what are customer expectations from the authorized distributor offering a vehicle.
only. The survey was conducted by visiting different places like Industries (J.k. Cement, Birla Cement etc.), Transport offices and meet with people like Drivers, attachment contractors etc.
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Introduction of company
The time has gone when people just wanted to have vehicles as a means of transportation but nowadays they are more aware about the vehicle model, their price and various other features which make them owner of a commodity which makes their neighbors feel envy of their choice. As India opened its gates for the foreign companies various automobiles giants entered our country seeking it as their target market. We Indians also got a wide variety of commercial vehicle to choose from. MAN entered in India with a view to capture the small market segment earlier captured mostly by two giant Indian companies- Tata Motors and Ashok Leyland. Tata is one of the company in which the Indians trust like anything. It has diversified itself in a number of sectors gaining the trust and proving its competence in every such field. It had a wide choice of commercial wheelers to satisfy the varied Indian choices. In the other hand Ashok leyland is also a well known brand in India. Now these two companies even have to fight for their existence in this automobile sector and had to produce in context of giving tough competition to the various foreign companies. If we think about just these two companies they are also tough competitor of each other since ages. They had always tried to give their customers the products to cherish upon. There are products which are liked by the customers in India and worldwide.
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Manufactures diversifying 1980s into related activities: finance lease, fleet Auto finance boom ore -m Entry of MUL, better product, m anagem ent, insurance players (foreign banks & with governm ent support and used car m arket non banking com panies, better schem es. Sellers Market Long W aiting Periods
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Automobile
2 Wheeler
3 Wheeler
Passenger Vehicle
Commercial Vehicle
L.C.V.
M.C.V.
H.C.V.
Truck
Trailer
Tipper
Bus
L.C.V. (Light Commercial Vehicle) M.C.V. (Medium Commercial Vehicle) H.C.V. (Heavy Commercial Vehicle)
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CARGO MOTORS India is emerging as one of the most attractive automotive markets in the world, and is poised to become a key sourcing base for auto components.
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The Indian automobile industry is highly competitive with a large number of players in each industry segment. Most of the global majors are present in the passenger vehicle and two wheeler segments. In terms of volume, two wheelers dominate the sector, with nearly 80 per cent share, followed by passenger
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vehicles with 13 per cent. The industry had few players and was protected from global competition till the 1990s. After government lifted licensing in 1993, 17 new ventures have come up. At present, there are 12 manufacturers of passenger cars, 5 manufacturers of multi utility vehicles (MUVs), 9 manufacturers of commercial vehicles, 12 of two wheelers and 4 of three wheelers, besides 5 manufacturers of engines. With the arrival of global players, the sector has become highly competitive.
History:
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Established in 1945, Tata Motors is one of the 32 publicly listed enterprises infer the Tata Group, Indias largest business conglomerate. Tata Motors collaborated with Germanys Daimler Benz in 1945 for 15 years to manufacture commercial vehicles .Since then, Tata Motors has grown enormously and produces several vehicles through their main Divisions- Passenger Cars, Utility Vehicles and Commercial Vehicles. In 1959, they set up their first and largest R&D centre in Jamshedpur .In 1961, exports had begun and the first truck was shipped to Sri Lanka. Another R&D Centre was started in Pune in 1966 to support automobile research which produced the first commercial vehicle by 1983 and light commercial vehicles three years later. With increasing sales popularity, they sold their one millionth vehicle by 1991 .Their interest in tapping the diesel engine market was evident through their joint venture with Cummins Engine Co. Inc in 1993 for the production of high horsepower and emission friendly diesel engine. The companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat). The companys dealership network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an
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international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand. Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been looking forward to. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. When launched in India later in
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2008, the car will be available in both standard and deluxe versions. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost). The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on human rights, labour and environment standards in compliance with the principles of the Global Compact. It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership from the glorious year of 1945 till date it is working on it success road.
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Production area
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VALUES
Trust Ethics Customer Centric Innovation Team Work Simplicity Integrity
Tata Motors has proven excellence over the years through its technologically advanced products, market expansion, customer satisfaction and increasing sales. Tata Motors consistently strives to increase shareholder value, build stronger customer relations and work with its business partners to provide the best value for money. The company is also involved in accelerating the countrys economic growth and protecting the environment.
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2004, Tata Motors acquired the Daewoo Commercial Vehicle Company of South Korea. Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo is the 2nd largest heavy commercial vehicle manufacturer in South Korea.
portfolio Tata Motors introduced the 25MT GVW TATA Novus from Daewoos (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 then National Highway Development.
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3.
World Truck range, developed jointly with Tata Daewoo Commercial Vehicles of South Korea in May09. The developing infrastructure in India makes it possible for transporters to reap the benefit of trucks with higher power, speed and carrying capacity. The new range from Tata Motors will meet those needs. It will also help it penetrate international markets more effectively and competitively.
Future Plans:
The commercial launch of these trucks in India is scheduled during SeptemberNovember 09. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of the fiscal. The trucks will be made at the Jamshedpur facility and at Gunsan in South Korea. The company expects international volumes to be at par with numbers in India.
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Product Profile
Tata Motors constantly looks for ways to offer the customer the best value for money. Beginning with a single truck model way back in the 1950s, Tata Motors manufactures more that 130 models of light, medium and heavy commercial vehicles ranging from two tones to 40 tones. Tippers, trailers, 4x4 off road vehicles, multi-utility vehicles-our range is vast.
Trucks
LPTA 713 Power : 119 HP Weight : GVW 7650 kg Drive : 4x4 Available in Right Hand Drive & Left Hand Drive LPT 1109 Power : 90 HP Weight : GVW 11900 kg Drive : 4x2 Available in Right Hand Drive
LPT 1112 Power : 125 HP Weight : GVW 11990 kg Drive : 4x2 Available in Right Hand Drive
SE 1613 Power : 125 HP Weight : GVW 15660 kg Drive : 4x2 Available in Right Hand Drive
LPT 1613 Power : 130 HP Weight : GVW 15660 /16200 kg Drive : 4x2 Available in Right Hand Drive
LPT 1615 Power : 138 HP Weight : GVW 16000 kg Drive : 4x2 Available in Right Hand Drive & Left Hand Drive
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LPT 1518/1618 Power : 178 HP Weight : GVW 14900 kg Drive : 4x2 Available in Right Hand Drive & Left Hand Drive
LPT 1918 Power : 175 HP Weight : GVW 19000 kg Drive : 6x2 Available in Right Hand Drive
LPT 2515 Power : 142 HP Weight : GVW 25000 kg Drive : 6x2 Available in Right Hand Drive
LPT 2518 Power : 176 HP Weight : GVW 25000 kg Drive : 6x2 Available in Right Hand Drive
LPT 2516 Power : 157 HP Weight : GVW 25000 kg Drive : 6x4 Available in Right Hand Drive
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Tippers
SK 1613 Power : 119 HP Weight : GVW 16200 kg Drive : 4x2 Tipper Body Vol : 8.5 cubic meter Available in Right Hand Drive LPK 1615 Power : 145 HP Weight : GVW 16000 kg Drive : 4x2 Tipper Body Vol : 8.5 cubic meter Available in Right Hand Drive & Left Hand Drive
LPK 1518/1618 Power : 178 HP Weight : GVW 14900 kg Drive : 4x2 Tipper Body Vol : 6-8.5 cubic meter Available in Right Hand Drive
LPK 2516 Power : 176 HP Weight : GVW 25000 kg Drive : 6x4 Tipper Body Vol : 12-14 cubic meter Available in Right Hand Drive & Left Hand Drive
SAK 1212 Power : 119 HP Weight : GVW 12180 kg Drive : 4x4 Tipper Body Vol : 4.5 cubic meter Available in Right Hand Drive
LPK 2518 TC Power : 176 HP Weight : GVW 25000 kg Drive : 6x4 Tipper Body Vol : 14 cubic meters Available in Right Hand Drive
Trailers
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LPS 3516 Power : 160 HP Weight : GVW 35200 kg Drive : 4x2 Available in Right Hand Drive
LPS 4923 TC Power : 227 HP Weight : GVW 49000 kg Drive : 6x4 Available in Right Hand Drive
LPS 4018 Power : 177 HP Weight : GVW 40200 kg Drive : 4x2 Available in Right Hand Drive
Opportunities
There are very few competitors available in the market. So Tata has opportunity to capture the market.
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Company has brand equity in the eyes of customers, so its product can easily penetrates in the market.
Company can come with less price vehicle to compete the Ashok Leyland.
Tata can launch more engine capacity vehicle to fight the competition.
To expand the product line Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck.
Threats
Increases in prices of raw materials
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Tata Motors face intense competition from its domestic as well as foreign competitors including Ashok Leyland, Man Motors, Swaraj mazda, M&M and so on.
Threat of new competitors entering in the market like MAN, Ford etc.
Government regulations regarding vehicle emission levels, noise, safety and levels of pollutants generated by its production facilities, increasing share of Foreign partners.
Public expectations which are hard to fulfill and are always changing. If not fulfilled can damage the companys image.
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1.
Tata Motors has made a great brand image in the mind of the
customers.
2.
3. Tata Motors and Ashok Leyland are major players in HCV market. The
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4.
5.
Motors.
6.
7.
facilities most. Whereas Ashok Leyland users face problem like availability of genuine spare parts.
8.
Leyland.
9.
10.
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12.
13.
should charge reasonable price from the customer for service and spare parts.
14.
accommodation and food facilities for driver, availability of genuine spare parts, less hidden charges etc.
Limitations
Rural area was the major problem in respect of language and convenience.
Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices.
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Some of the respondents were not co-operative and many seem to be having no interest because of recession.
The study has not been intended on a very large scale, having the possibility of errors, which cannot be ruled out.
The respondents knows us as people from Tata Motors thereby they could have been bias.
The time was itself a limitation as it was tough to meet too many respondents in the given time span.
Suggestions
1. Tata Motors has made a great brand image in the mind of people
so company should take the advantage of this brand image to diversify the customers of other competitors.
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2. People look for resell value at the time of purchasing any HCV.
And vehicles of Tata Motors have a good resell value. Company should try to get benefit of this advantage.
3.
Leyland. So company can design some low cost HCV to fight the low cost rivals.
4.
considered as real competitors of Tata Motors. So this fact goes in favor of Tata Motors. It should try to achieve the market leadership position.
5.
segment. Now Tata Motors need to develop some luxurious HCV to compete with Ford Motors. Like it can develop some A.C. enable HCV.
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conditions. So Tata Motors can develop some high engine capacity vehicle to penetrate the market.
7.
so that it number of customer can be increase and it can achieve market leadership position.
8.
authorized service center. So Tata Motors need to make it cheaper so that the customers will service their vehicle from authorized service center rather than local garages.
9.
10.
should charge reasonable price from the customer for service and spare parts. In other facilities they expect facilities like service guarantee, accommodation and food facilities for driver, genuine spare parts, less hidden charges etc. so company should help the providers to accomplish their expectations.
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Conclusion
Tata Motors has proven excellence over the years through its technologically, advanced products, market expansion, customer satisfaction and increasing sales. Tata Motors consistently strives to provide the best value for money.
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In HCV segment of automotive industry in India Tata Motors has a Market share of 64% which is a highest of HCV segment. It has high growth in international market also. Indian HCV users are more concern about resell value, insurance facilities and brand name. Price and fuel efficiency are other parameters people looks for before buying HCV. Tata Motors has made a great brand image in the mind of people. People are highly satisfied with Tata Motors. High resell value and availability of spare parts and service center are major advantages of Tata Motors. But there are some hinders in the path of success of Tata Motors like international competition, new entries in HCV segment and customer dissatisfaction from Tata Motors regarding finance facilities. We can say Tata Motors is in the position of Market leadership. But to sustain this position it need to make strong strategies to fight with upcoming players. At the same time it should also make some new plans to fight with existing players.
References
Websites
www.tatamotors.com
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Books
News Papers
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