SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL BUSINESS

REVIEW OF CUSTOMER SATISFACTION AT THE SERVICE STATION OF TATA MOTORS

SUBMITTED BY: AMIT KRISHNA

Roll No. : A1802007C06

INDUSTRY GUIDE Mr. RANVIJAY KANT Marketing Manager Tata Motors, Jamshedpur.

FACULTY GUIDE Mr. NISHANT KUMAR RAI

AMITY INTERNATIONAL BUSINESS SCHOOL NOIDA

AMITY UNIVERSITY UTTAR PRADESH

TO WHOM IT MAY CONCERN

This is to certify that DUBBHI CHOUDHARY, a student of Amity International Business School, Noida, undertook a project on REVIEW OF CUSTOMER SATISFACTION AT THE SERVICE STATION OF TATA MOTORS at MITHILA MOTORS JAMSHEDPUR from 8/5/2008 to 8/7/2008. Mr.AJIT KUMAR has successfully completed the project under the guidance of Mr. RAVI KANT. He is a sincere and hard-working student with pleasant manners. We wish all success in him future endeavours.

Signature with date RAVI KANT MARKETING MANAGER TATA MOTORS, JAMSHEDPUR

CERTIFICATE OF ORIGIN
This is to certify that Mr. Dubbhi Choudhary, a student of Post Graduate Degree in MBA IB (2007-09), Amity International Business School, Noida has worked in the USAGE OF SPECIAL SKILL AND TOOLS IN MARKETING FOR BETTER EFFICIENCY OF PRODUCT AND CUSTOMER SATISFACTION REVIEW, under the able guidance and supervision of Mr. Ranvijay Kant, Marketing Manager, Mithila Motors, Jamshedpur. The period for which he/ she was on training was for 8 weeks, starting from 8/5/2008 to 8/7/2008. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature NISHANT K. RAI

Signature DUBBHI CHOUDHARY

ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. RANVIJAY KANT, Marketing Manager, Tata Motors, Jamshedpur 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 Tata Motors, Jamshedpur, for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Prof.Mr. Nishant Kumar Rai of my institute, for his continued guidance and invaluable encouragement.

Signature DUBBHI CHOUDHARY

TABLE OF CONTENTS
Chapter No. Ch. 1.0 Ch. 2.0
2.1 2.2 2.3 2.4

Subject Executive Summary. Research Methodology Primary Objective(s) Hypothesis Research Design Sample Design Scope of the Study Limitations Critical Review of Literature.. Company Profile . Industry Profile Swot Analysis Data.. Collection Primary Data Secondary Data

Page No. 6 7-11

2.5
2.6

Ch. 3.0 Ch. 4.0 4.1 4.2 Ch. 5.0 5.1 5.2 5.3 Ch. 6.0 Ch. 7.0 Ch. 8.0 Ch. 9.0 9.1 9.2 Ch. 10.0 Ch. 11.0

12-13 14-26

27-28

Findings & Analysis. Recommendations Bibliography. Annexure.. Tables Graphs Case Study........................................ synopsis of the project..

29-46 47-49 50 51-58

59-66 67

CHAPTER 1 EXECUTIVE SUMMARY

The automotive industry is at the centre of Indias new global dynamics. TATA MOTORS Commercial Vehicle Business Unit (CVBU) is a division of TATA MOTORS, having a TATA MOTORS product range covers Medium and heavy, light commercial vehicle, small commercial vehicle and buses. As the project title CUSTOMER SATISFACTION SURVEY Suggests that the project report is all about the technical and the commercial aspect of the company. While doing survey I realize that the things learnt from the books are quite different from the actual practice in field. The body of the project report takes a micro level approach, using each step of the marketing research process. The main source of analyzing the data is through questionnaires. A complete analysis has been done in research methodology part to find the advantages and disadvantages of the company. A complete Analysis of variance has been done to find the kind of satisfaction Tata Motors Service Stations provides to their Customers. The best part of this project report is the analysis and interpretation of the various services provided by Service Station. This part directly shows whether the customers are satisfied with the products and services of Tata Motors and criticizes the ill part of the company. At the last part I wrap up the project with suggestion and recommendations to enhance the future growth and prospects of the company.

CHAPTER 2 RESEARCH METHODOLOGY

Objective of the study 2.1 Primary objectives To ascertain the level of satisfaction among the Tata Motors vehicle owners (commercial vehicles) with respect to services provided by authorized service stations. To evaluate critically market acceptance of Tata Motors (CVBU) products. To analyze the price sensitivity in various spares. To find out the customers perception on different attributes through questionnaires. Secondary objectives Consumer perception towards the products of Tata Motors(CVBU) Advice to change some attributes of Service Station. To understand the potential market. What are the ways to retain the existing customers of commercial vehicles to service station 2.2 SCOPE OF THE STUDY As the title of the project CUSTOMER SATISFACTION SURVEY suggests that the project is divided into two major parts:

1) Technical 2) Commercial The scope of the technical part is limited to the company premises only. Various raw materials are imported from our own Domestic and foreign market also. The research and development department of TATA MOTORS is constantly attempting to lower the cost of some of the models. The scope of the commercial part is very wide. The geographical area covered is JAMSHEDPUR. The time period assigned to me was complete two months. The authorized service station covered for the survey was MITHILA MOTORS PVT. LTD. Basically there was a questionnaire to which the respondent has to respond. 2.3 Research Design All research approaches can be classified into three general categories: 1) Exploratory Research 2) Descriptive Research 3) Casual Research Since data collection method is from surveys, hence Descriptive type of research is used for analysis of the data. The study was descriptive in nature because it depicts characteristics or functions of the market. It describes the number, distribution and socio-economic characteristics of potential customers for the product. Type and collection of data used Basically there are two types of data which are used in marketing research process.

1. Primary Data: the methods of collecting primary data are as follows, A: Observation : Interview C: Telephonic Interview D: Questionnaires Interview: Interview is one of the chief means of collecting data in research process. Interview may be defined as a systematic conversion initiated for a specific purpose and focus on certain planned content areas. It is not a simple two way conversion between an investigator and an informant. Surveys: There are three main types of surveys, depending upon the method of data gathering used: personal interview surveys, telephone surveys and mail surveys. Advantages of survey: Following are the main surveys: 1. Wider Distribution 2. Less Distribution Bias 3. Thoughtful Reply The primary data under processing is collected from both direct filling the questionnaires and through telephone interviews also. 2. SECONDARY DATA: The data once collected by one person become the secondary data if used by another person. Sources Of secondary data: The various sources of secondary data are as follows: 1. Bibliographies. 2. Directories. 3. Newspaper. 4. Journals. 5. Websites

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6. Television The secondary data like information of existing customers, information about companys profile product line and sales figure has been taken from companys website. 2.4 Sampling A sample is a part of the population. The sample should be representative of the population and the information obtained must be reliable. In any survey where reliability is desired , the error and variance have to be controlled , measured , and interpreted. The sample size is of one hundred for existing customers. The type of population selected is the TATA MOTORS service station named MITHILA MOTORS PVT. LTD at JAMSHEDPUR. Sampling Technique: Non probability judgment sampling Statistical tools used The list of statistical tools used while analyzing the data is as follows: TABLES BAR CHARTS PIE CHARTS OPERATING ECONOMY TEST OF HYPOTHESIS

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2.5 Limitations of the study Every study conducted may have certain shortcomings and unfortunately ours is also a similar case. A few errors have crept in despite our best effort to avoid them but it is expected that still our study and findings are very much relevant.

An error may have been due to the samples taken not conforming to the actual population: this is because the sample is a convenience sample. Personal bias or error of the interviewer might also have crept in: some cases, while interpreting the respondents. Certain questions which are not properly responded by the responders. Some of the respondents have not responded totally.

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CHAPTER 3
CRITICAL REVIEW OF LITERATURE
Presenting a tempered vision of the technological future, Tata Motors MD As increasing liberalisation norms transform the Indian economy, the transportation sector is set for explosive growth. The personal and public transport segments are still in an early stage of growth, but you don't need a crystal ball to see the sweeping changes waiting to happen. The government's massive infrastructure development programme is connecting thousands of towns and villages all over the country. The building of roads where dirt tracks existed before is spurring communication and commerce. Suddenly, cars, buses and scooters are plying where only bullock carts used to. A whole new world of opportunities is opening up for our rural communities. Rapid growth will inevitably bring problems in its wake. This doesn't mean we should curtail growth; instead, if we have to bring about an improvement in the quality of life of our people, we must remove constraints. The challenge will be to ensure there is greater discipline in the development process, more certainty. Strategies for tomorrow Looking ahead, there are strategic issues that Tata Motors need to address. One such discussion involves moving from low-cost production to high-quality products. Frankly, in today's environment, I don't see a conflict between the two. I would argue that it's not an either/or situation at all, for I can be a low-cost producer and yet steal a march over others through innovation.

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In fact that's how the strategy is unfolding for us. The equation that a good vehicle can be made at a lower cost is emerging quite clearly with advances in technology and development of appropriate business models and product packages. A case in point is Ace, our small truck, launched in 2005. As a four-wheeler, it is positioned against the big three-wheelers, and gives customers what they want, and at a competitive price, while meeting safety, emission and comfort norms. The Ace is doing pretty well. Similarly with the Tata Motors low-priced car. It will have all the features essential for comfort and safety. By applying effective technologies and innovative solutions, we will try and ensure that it remains a low-priced vehicle, without compromising on its quality. As economies liberalize, competition will only stiffen, be it in India or elsewhere. Compared to us, there is a gap in quality and performance that works in favour of foreign brands; on the other hand, there is a gap in cost that is not to their advantage. What foreign companies would like to do is to retain that positive gap in performance and quality, and reduce the gap in cost. Companies like ours, which have an advantage in cost but an adverse gap in quality and performance, will aim to close the gap in quality and retain the gap in cost. These will be the two key strategies for the future. I feel that companies like Tata Motors, which have the cost factor on their side, will have an advantage. Time alone will tell if I am right! Steps ahead But technology and cost competitiveness are only one part of the story. It is the principles with which the Tata Group does business that will be the real differentiator. Our commitment to the communities, the countries we operate in, sets us apart from other multinationals. As the largest automobile company in India, Tata Motors has to keep at least half a step ahead in an evolving market in order to maintain its leadership position. I am confident

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our company will adapt to expanding opportunities in the market even as they emerge, and maintain its leadership.

CHAPTER 4 COMPANY PROFILE

COMPANYS STATEMENT VISION STATEMENT To be a world class corporate constantly furthering the interests of all its stakeholders. MISSION STATEMENT SHARE HOLDERS: To consistently create share holder value by generating return in excess of weighted average cost of capital [WACC] during the upturn and at least equal to weighted average cost of capital [WACC] during the downturn of the business cycle. CUSTOMERS: To strengthen the TATA brand and create lasting relationship with the customers by working closely with business partner, to provide superior for money over the life cycle. EMPLOYEES: To create a seamless organization that incubates and promotes innovation, excellence and the TATA core values COMMUNITY: To proactively participate in reshaping countrys economic growth. To take a holistic approach towards environmental protection. TATA MOTORS Limited is India's largest automobile company, with revenues of Rs.20, 483 crores (USD 4.7 billion) in 2004-05. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning 15

products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. The company's 22,000 employees are guided by the vision to be best in the manner in which we operate best in the products we deliver and best in our value system and ethics. Established in 1945, TATA MOTORS' presence indeed cuts across the length and breadth of India. Over 3 million TATA vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across Jamshedpur, Pune and Lucknow, supported by a nation-wide dealership; sales, services and spare parts network comprising about 1,200 touch points. TATA MOTORS, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as a global automotive company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristhinied TATA Daewoo Commercial Vehicles Company has already begun to launch new products. 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. Hispanos presence is being expanded in other markets. These acquisitions will further extend TATA MOTORS' global footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customerdesired offerings through leading edge R&D.

16

With 1,400 engineers and scientists, the company's Engineering Research Center, established in 1966, has enabled pioneering technologies and products. TATA MOTORS, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the TATA Indica, India's first fully indigenous passenger car. Within two years of launch, TATA Indica became India's largest selling car in its segment. The pace of new product development has quickened. In 2005, TATA MOTORS created a new segment by launching the TATA Ace, India's first indigenously developed minitruck. 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. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. 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, labor and environment standards in compliance with the principles of the Global Compact. Simultaneously, it also plays an active role in community development, serving rural communities adjacent to its manufacturing locations. With the foundation of its rich heritage, TATA MOTORS today is etching a refulgent future.

17

MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

18

Domestic Sales

TATA MOTORS have shown a continuous growth in commercial vehicle segment. There is a growth of 34% in MHCV and 46% in LCV in 2006-07. A total growth of 3% growth is achieved in total CV.

COMPETETIORS:

19

Ashok Ashok Leyland Leyland

EICHER EICHER

MAHINDRA & MAHINDRA & MAHINDRA MAHINDRA

SWARAJ SWARAJ

The above companies are the leading manufacturers in heavy & medium commercial vehicles which are operating in JAMSHEDPUR. In Jamshedpur TATA is the leading vehicle and has a greater market share.

SWOT ANALYSIS FOR TATA MOTORS STRENTHS

20

Tata Motors has major share in HMCV segment (60%) and second largest in passenger vehicle market. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). The company has made major mergers and acquisitions in the recent past viz. Ford and Land Rover (U.K.), Daewoo commercial vehicles company (Korea). The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal.

WEAKNESSES There is a need for more service stations for its authorized dealers. The recent mergers and acquisitions were too expensive. Maintaining the good quality product at a comparatively low cost is becoming tough for the company. OPPORTUNITIES There has been a continuous increase in the exports of both commercial and passenger vehicles of Tata Motors. Government has provided the companies with SEZs and EEZs with flexible policies and also providing concessions for manufacturing plants meant for export. Though the urban market has been penetrated, the rural market is still open for penetration. The average annual income of people in India has increased which ensures the demand for both passenger and commercial vehicles. THREAT The biggest threat for the company is the increasing prices of the raw material, most important among them is steel. The interest rate on vehicle loans has been increased by the government several times during the past few years which has lead to fall in the demand. Since the government has allowed 100% FDI in automobile sector lot of foreign players have entered into the Indian automobile sector e.g. Hyundai, Toyota. There is also a rise in the number of domestic competitors in the recent years.

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4.1 INDUSTRY PROFILE: Automobile put the horses on rest and changed the way of living for mankind, is a wheeled passenger vehicle that carries its own motor. The term 'automobile' is derived from Greek and Latin words. 'Auto' in Greek means 'self' and 'mobiles' in Latin means 'movable.' The phrase refers the fact that it 'moves by itself.' Automobile used to be also addressed as 'motorwagen' or 'horseless carriage'. The first automobile rolled in India in 1897 in Bombay (now Mumbai). Soon the number of cars increased on the roads and it became the status symbol until MARUTI UDYOG entered the market in 1980s with cars at economical price and high fuel efficiency. Maruti800 had ousted the outdated model of HINDUSTAN MOTORS best seller brand Ambassador. Today, the Indian automobile industry has matured greatly. It has become one of the largest industries in India, witnessing impressive growth during the last two decades. Worldwide, the industry is getting recognition and vehicles as well as components are making good progress in the export market. . In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. INDIAN AUTOMOBILES CURRENT SCENARIO

Largest two-wheeler manufacturer in the world. 2nd largest tractor manufacturer in the world. 5th largest commercial vehicle manufacturer in the world. #1 global motorcycle manufacturer is in India. 4th largest car market in Asia - crossed the 1 million mark.

PRODUCTION SCENARIO The bar diagram given below compares the figures between 1998-99 and 2004-05 (AprDec).

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1. Among the two-wheeler segment, motorcycles has the major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 2 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the passenger vehicles. 3 Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. 4 In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. India has witnessed a sudden and sharp twist to its earlier staggering political and business scenario. With the influx of F.D.I, the economy has seen the sensex soaring thanks to the young working population from the various strata of the society, who are sincerely contributing to the G.D.P of the country. The young population has become extremely mobile in terms of conducting business and serving the society. The sales of commercial and passenger vehicles has thus witnessed a sudden increased demand which is expected to grow in leaps and bounds in the following months to come.

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The average working population has increased, and with the B.P.O sector tagged to provide employment to thousands there has also been an increase in the passenger car market.

T R E N D S IN T H EA U

PRODUCTION IN

P r o d u c tio no f
C A G R

MILLION

1 0 8 6 4 2 0 4 .8

15.4%

India's aut
12 24 2 0 0 0 -0 1

ion

2 0

GROWTH PATTERN COMPARISON FOR 6 YEARS Liberalization and Globalization has contributed largely to the sudden entry of new players in various segments of the automobile industry. With the dawn of the new millennium and the introduction of new vehicles with extended features, better quality product and after sales services in the commercial and passenger vehicles, the market had seen a tremendous rise in the demand for new vehicles. The above graphs show a sudden rise in the production of automobiles. It shows a rise of 77% in 5 years from the year 2000 to 2005. Last fiscal saw the production touching 9.74 million units from the automobile sector. The trend is predicted to prevail in the coming 5 years and the production is expected to grow by another 15 % in the next few years to come.

SEGMENT WIS

G row th R ates
23.5 25 years because the two-wheelers continue to form the major share of domestic sales in the 20 vehicles lead the export market with a 57.4% share. Indian market whereas the passenger
The Automobile Industry has not experienced much change in its structure over the last 6 The growth of the 2 wheeler and the sudden demand for the 4 wheeler cars, the passenger vehicle market is being probed by the danger of losing its market share. It is witnessing

4 year CAGR

15 10

11.3

5 0

25

competition from the 2 wheeler manufacturers who are now providing vehicles to the customers with minimum down payment options and easy repayment schemes. Private financers have mushroomed into the cities and are fundamental in the increased sales of the new vehicles. New customers are constantly being lured by the best quality automobiles from various parts of the globe and from the local competitors. The current market share but belongs to the commercial vehicles in which TATA motors holds a major market share.

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SWOT ANALYSIS FOR AUTOMOBILE INDUSTRY STRENGTHS Indian automobile industry sales grew to 11.12 billion units in 2006-07, exhibiting an impressive CAGR of 15.5% during the past 5 years. India is the second largest two-wheeler manufacturer in the world. The Indian automobile industry has reached a size of US$ 15 billion in 200607, growing at a CAGR of nearly 29% in the last four years Fifth largest commercial vehicle manufacturer in the world. Acquisitions made overseas are helping Indian automobile companies get access to new set of skills, technology and customers e.g. recent acquisition of Jaguar and Land Rover brands (U.K.), Daewoo Commercial Vehicle Company (Korea). WEAKNESSES The automobiles manufactured in India are not of the European standards and their import duty is sometimes more than 100%. The Indian automobile sector has been flooded by both foreign and domestic companies. The burden of direct and indirect taxes is higher in India as compared to in other countries. OPPORTUNITIES Penetration level of commercial vehicles is less, especially in Rural area. Rapid Urbanization and Increase in income level. The Indian automobile sector has shown a rise of 78% from 2000-2008 and the production is expected to grow at 15% in the years to come. THREATS Increased Automobile-density gap between Rural and Urban India. With 100% FDI allowed in India more and more foreign companies are opening there manufacturing plants in India and hence building more competitors. In order to emerge as a manufacturing hub, India would face competition from other low cost countries such as China, Thailand, Brazil

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CHAPTER-5 DATA
PRIMARY DATA: The primary data was collected by asking the consumers who come to the authorized service stations for the servicing of their commercial vehicles and also the new customers of the commercial vehicles to fill up the questionnaires by me. It is a very important part of the project as it is only through the properly filled up questionnaires that I can reach to any conclusion from the data which I got from the questionnaires. SECONDARY DATA: Secondary data are the information which is attained indirectly. They are the data collected by someone else and which has already passed through statistical process. There exist two sources of secondary data. Internal sources- they can be classified into four broad categories

Internal sources

External sources

Accounting Records Generate a great deal of information. It gives a detailed analysis of sales by product, customer, industry, geographical area. Sales force reports- this source provide a great deal of information Miscellaneous reports- any studies done on marketing problem of the company, Internal experts- executives working as product manager, marketing research

special audits also provide a good deal of information manager, advertising personnel also serve to be a good source of information.

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External sources-external secondary data do not originate in the firm and are obtained from outside source. Example-govt publications, non-govt publications, newspapers, magazines, journals, websites etc.

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CHAPTER-6 FINDINGS AND ANALYSIS

SAMPLE SIZE = 100 CUSTOMERS The questions were asked to 100 customers about customers satisfaction that have purchased Tata Motors heavy & light commercial vehicles. I have selected several models which are LPT 2515 TC, 2516 TC, SE/SK/1613, ACE, 407 EX, 207 DI EX, 3516 TC, 1109 EX, 709 LP. The datas collected were of the month of May and June from MITHILA MOTORS pvt. Ltd. (DEALER) in JAMSHEDPUR.

Q1. When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS?
YEAR 2006 MARCH (07) 25%

PERIOD MARCH (07) APRIL (07) JAN-FEB (07) YEAR 2006

NO. OF CUSTOMERS 25 32 25 18

18%

JAN-FEB(07) 25% APRIL (07) 32%

MARCH (07)

APRIL (07)

JAN-FEB(07)

YEAR 2006

INTERPRETATION Most of the customers have come for service in TATA DEALER SERVICE STATION in the month of april i.e. 32% last time and the least the customers came for service is in the year 2006 i.e. only 18%. According to the customer survey many customers told that they have to come for service again and again because of some problem in the vehicle. Only 18% of the total customers said that they have come to a dealer service after a very long time. Those 18% customers are quite satisfied with the service.

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Q2) Where did you take it for service? (Name of the dealer)

% O F C U S TO M E R S

DEALER MITHILA MOTORS OTHERS

No. OF CUSTOMERS 80 20

M ITH IL A M O TO R S O TH E R S O T H ER S 20%

M IT H IL A M OTORS 80%

INTERPRETATION 80% of the customers come for services in MITHILA MOTORS (DEALER).Only 20% prefer others. According to the survey all the people are very well known to the people in mithila and they trust them.80% customers regularly come for service in mithila motors.

Q3) How was the overall experience?

% OF CUSTOMERS

OVERALL EXPERIENCE SATISFIED DISSATISFIED

No. OF CUSTOMERS 60 40
DISSATISFIED 40% SATISFIED 60%

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INTERPRETATION According to the survey 60% customers are overall satisfied and 40% are dissatisfied. According to the survey: Most customers are dissatisfied with the unavailability of spare parts in Mithila motors. Some are dissatisfied with the product quality. Some are unhappy with the mechanics working in Mithila motors. Most of the customers are very much happy with the culture of Mithila motors and also the way the staffs attend the customers. Some are unhappy with the space available for servicing at dealer point. Some are dissatisfied with the delay in service. No. OF VEHICLES <= 5 vehicles > 5 vehicles > 10 vehicles No.OF CUSTOMERS 43 22 35

Q4) NO. of TATA commercial vehicles used in the past 5 years?

% OF CUSTOMERS

> 10 vehicles 35%

<= 5 vehicles 43%

<= 5 vehicles > 5 vehicles > 10 vehicles

> 5 vehicles 22%

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INTERPRETATION According to the survey customers who have used more than 10 tata commercial vehicles are 35% of the sample customers. Customers who have more than 5 Tata CV are 22% and 43% of the customers have less than 5 commercial vehicles. This shows that many customers are satisfied and happy with TATA COMMERCIAL VEHICLES and of their services. The FLEET OPERATORS of TATA COMMERCIAL VEHICLES who operate in whole of Jharkhand and have more than 10 TATA CV is:

1 2 3 4 5 6 7 8 9 10 11 12

UTILITY TRANSPORT FRONTLINE ASSOCIATES B.S. ROADWAYS COMMERCIAL CARRIERS TARAPORAN COMPANY RAHANIA TRAILORS MALLIK TRANSPORT HAULERS INDIA TAURIAN FINANCE STEEL CO. NARESH KUMAR AND CO. C.C.I. SEIZER METALLICS

Q5) Type of work required in your vehicle. No. of customers

40 30 30 20 20 10 0 14 PAID SERVICE FREE SERVICE PAID REPAIR PAID FREE PAID WARR SERVI SERVI REPAI ANTY 30 36 14 20 WARRANTY 36

33

No. of custom ers

Most of the customers i.e.36% come to MITHILA MOTORS for FREE SERVICE and only 14 out of the 100 customers come for the paid repair. The reason behind this is that according to the survey many customers told me that spare parts available in any dealer is very costly. Therefore sometimes they buy parts from local shops at lower cost.30% of the sample customers come for PAID SERVICE and 20% customers come for repairing if its vehicle is in warranty period. Type of service Q6) Did you have to make an advance booking?
NO.OF CUSTOMERS

PAID SERVICE FREE SERVICE PAID REPAIR WARRANTY

No. customers 30 36 14 20

of

NO 34%

Y ES NO

YES 66%

INTERPRETATION 66% Customers have to make an advance booking for servicing because in MITHILA MOTORS because of the rush of customers time consumption is more. This results in a loss of the customers. Therefore they have to do advance booking. Only 34% of the samples customers do not do advance booking. These customers mainly come for paid repairing of the vehicle and not for free servicing. Many customers have to wait in the queue because of the rush.

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Warranty Immediately Accepted

No. of customers

YES NO

65 35

Q. 7) If your vehicle was under warranty was it immediately accepted or it took time for a decision to be taken?

No. of customers

NO 35%

YES 65%

YES NO

INTERPRETATION According to the survey 65% of the customers said that their vehicle under warranty was accepted.35% of the customers said that although their vehicle was under warranty then also it was not immediately accepted. Customers view 1. Some customer said that there was unavailability of spare parts in MITHILA MOTORS therefore it was not accepted. 35

2. In some dealer workshops (mithila motors chaibasa), they do not have the authority to accept warranty. 3. Some times parts are not available so the dealer have to bring from OPTIONS NO.OF CUSTOMERS IMMEDIATELY 75 NOT IMMEDIATELY 25 outside. It is time consuming and also loss for the customer.

Dealers view 1. According to the dealer some parts of vehicle are not under warranty so it is not accepted. 2. Also some customers do not bring their registration book so it is not possible for the dealer to repair the vehicle under warranty because for some vehicle warranty is accepted till one year from the purchase date. INTERPRETATION 94% Customers told that they need not have to pay any deposit but also 6% customers told that they once gave the deposit before their vehicle was repaired. The reason being sometimes spare parts were not available in MITHILA MOTORS therefore the customers had to buy from outside from their own pocket. Q9) When the vehicle arrived at dealership/ TASS (TELCO AUTHORISED SERVICE STATION), how long did it take for the vehicle to be taken into the workshop and open job card?
NO.OF CUSTOMERS

25%

75%

IMMEDIATELY

NOT IMMEDIATELY

36

INTERPRETATION According to the survey 75% customers said that when their vehicle arrive at the authorized workshop their vehicle was immediately taken inside and the job card was immediately opened.25% customers also said that that it took time for the job card to be opened. According to the customers there is a queue formed sometimes. The customers also complained that sometimes the dealer do not accept the warranty period of the parts which is to be repaired therefore the vehicle is not being taken inside. The dealer also said me that sometimes the customer do not bring the registration book therefore it is not possible for them to take the vehicle inside the workshop.

Q 10) Are you satisfied with the performance and product quality of different models?

SATISFIED

DISSATISFIED
100 86 70

100
% Of C U S T O M E R S

80 60 40 20 0
LPK 1613 T 2515 LP T
62 38 60 40 14

30

T 2516 LP K C

AC E

X 40 7 E

37

INTERPRETATION MODEL 1613 LPK 62% of the customers are satisfied and only 38% customers are dissatisfied. Why dissatisfied According to the survey some customers told that fuse system is not good. Some said that diesel in tank comes to chamber which in diesel loss and mobil loss. MODEL 2515 TC - 60% customers are satisfied and 40 % are dissatisfied with this model. Why dissatisfied A customer name JAI PRAKASH SINGH said that the vehicle has poor pick up.he also had a problem of gear trouble but the action was not taken.Another customer said that he came to MITHILA MOTORS 4 times for steering problem again and again. MODEL 2516 TC 86% Customers are satisfied and only 14% are dissatisfied with is model. Why dissatisfied Few customers have the problem of diesel leakage. MODEL 407 EX All the sample customers to which I have contacted are satisfied with the performance and product quality of this model. MODEL ACE 70% Customers are satisfied and only 30% are dissatisfied. Why dissatisfied According to the survey some customers said that there is no sudden pick up in the vehicle. Some said that tyre is very small. Some said that body and tyre guard is not there. Noisy steering also creates problem. A customer named M.D.SALIM said that while purchasing vehicle it comes without good paint so he had again painted from his own pocket. Q11) How frequently the maintenance cost occur? No. of times(monthly) No. of Respondents

No Maintenance Cost 18 <= 3 times 73 Frequency Of Maintainance Cost(monthly) > 3 times 9

9%

18%

No Maintainance Cost <= 3 times > 3 times

73%

38

INTERPRETATION According to the survey I found that only 9% customers have to incur maintenance cost more than 3 times a month.73% of customers have to incur less than 3 times a month and also 18% customers reported that they didnt incur any expense on their vehicle since they purchased. These customers have recently bought their vehicle. Therefore it means the maintenance cost of TATA commercial vehicles is very less.

MODEL WISE MAINTAINANCE COST

MAINTAINANCE COST(MONTHLY IN RS) 8000 7000 6000 5000 4000 3000 2000 OPTIONS 1000 5000 3500 2000 1500 7500

NO. OF RESPONDENTS

YES 74 0 NO LPT 2515 LPK 2516 1613 LPT 26

TC TC

407 EX

ACE

INTERACTION WITH SERVICE ADVISOR

26%
YES

Q12) Did you interact with the service advisor about your problem?
74%

NO

39

INTERPRETATION 26% customers did not interact with the service advisor and 74% customers took suggestion of them. Understanding the problem
DID HE UNDERSTAND THE PROBLEM WAS A ROAD TEST TAKEN

24%

50 45 40 35 30 25 20 15 10 5 0 YES NO 50 50

8%

68%

YES

NO

NO PROBLEM

INTERPRETATION According to the survey 24% customers who have no problem with the vehicle did not interact with the service advisor.8% customer said that the service advisor did not understood their problem and had taken their problem casually.

Q13) Did the workshop give you a proper estimate of time and cost?

PROPER ESTIMATE OF TIME & COST

40

NO 40% YES 60%

YES NO

INTERPRETATION According to the survey 60% customers said that the dealer gives them proper estimate of time and cost.40% said that they do not give the estimate. The customers said that sometimes spare parts were not available so they took time to arrange the spare parts. Dealers said that first they have to see exactly what is the problem in the vehicle and then they do the repair. Q14) Was it delivered on time?

OPTIONS YES NO

NO. OF RESPONDENTS 76 24

TIMELY DELIVERY
T 76

OPTIONS NO. OF RESPONDENTS YES NO 60 40

80 70 60 50 40 30 20 10 0

%
CUS TO ME NO RS
24OF

YES

NO. OF RESPONDENTS

41

INTERPRETATION 76% Customers said that their vehicle was delivered on time. Only 24% said it was not delivered on time. According to the survey one customer said that the dealer once delayed for 2-3 days in delivering the vehicle because then parts were not available. Sometimes que is formed in the workshop. The main reason is because of space problem in MITHILA MOTORS. Q15) How frequently you change the tyre?

TYRE REPLACEMENT(MONTHS)
8 7 6 5 4 3 2 1 0 8 6 3 5 MONTHS 8

LP

INTERPRETATION

161 3L PT

T2 LP 51

407 EX

AC

K2 51

5T C

6T C

MODEL

42

According to the survey customers of MODEL 1613 LPT said that they change the vehicles tyre once in 3 months because it is heavy commercial vehicle and holds a capacity of around 22 tones. Customer of MODEL LPT 2515 TC said that the average life of tyre is around 6 months. Customer of MODEL LPK 2516 TC said that the average life of tyre is 5 months. Customer of MODEL 407 EX said that the average life of tyre is 8 months. Thus the conclusion is that the LCV of TATA has more average tyre life than H & MCV.

Q16) What is the KMPL of the vehicle?

AVERAGE MILEAGE
18 16 14 12 10 8 6 4 2 0 17

10 AVG. MILEAGE(KMPL) 3 3.5 2.5 LPK 2516 TC 407 EX ACE

1613 LPT

LPT 2515 TC

INTERPRETATION According to the survey I found that MODEL 1613 LPT has a mileage of 3 kmpl. MODEL LPT 2515 TC - 3.5 KMPL MODEL LPK 2516 TC 2.5 KMPL MODEL 407 EX 10 KMPL

43

MODEL ACE 17 KMPL 17) Did you go back to the workshop for the same problem shortly afterwards?
CAME BACK FOR THE SAME PROBLEM SHORTLY AFTERWARDS

NO 42% YES 58%

YES NO

INTERPRETATION According to the survey 42% customers did not come back for the same problem shortly COMPETENCE NO. OF afterwards.Of these some do not have any problem with their vehicle.58% of the customers said that they OF MECHANIC RESPON went to the workshop for the same problem shortly DENTS afterwards. SATISFIED Some came because of pump problem again and again. One customer bought some parts from outside DISSATISFIED 21 because the parts available in MITHILA MOTORS was expensive so he has to come to the workshop again. One customer has a complain that his vehicle was under warranty period then also his complain was not being listened by any service station so he had to come again. Q.18) How do you find the competence of mechanic in the workshop? Do they know their job well? 79

NO. OF RESPONDENTS
90 80 70 60 50 40 30 20 1 0 0 SATISFIED DISSATISFIED

79

21

SATISFIED

DISSATISFIED

44

LEVEL OF SATISFACTION Q19) Will you recommend others for service in this workshop?
% OF RESPONDENTS

NO 82% YES NO YES 18%

INTERPRETATION According to the survey 82% customers are happy with the staff present in MITHILA MOTORS but 18% customers recommended that some others should be brought for better and quick service. Some customers recommended that the mechanic should be increased as there is always a rush in the workshop. The manager should guide the mechanic to do proper work and recheck the vehicle after the servicing is done. One supervisor should also be kept to guide the mechanic.

Q20.) Are you happy with the cleanliness and workshop infrastructure?
CLEANLINESS & WORKSHOP INFRASTRUCTURE

NO 14%

YES NO
YES 86%

45

INTERPRETATION

According to the survey 86% customers said that they are happy with the cleanliness and workshop infrastructure but 14%customers also said that they should increase the space of workshop. Most customers complained that they have to park their vehicle outside the gate for 2-3 days as there is rush in MITHILA MOTORS

21) LIKINGS OF THE CUSTOMER ABOUT TATA COMMERCIAL VEHICLE

% OF RESPONDENTS

99

82

75 SERVICING PRODUCT QUALITY BRAND

INTERPRETATION 82% of the customers like the service of TATA commercial vehicles than others as there are more no. of service station of TATA in every district. 99% customers like the brand of TATA as it is a trusted company. Only 75% customers like the product quality of TATA C.V.

46

Q22.) CUSTOMERS ARE COMFORTABLE WITH THE SERVICE OF. DEALER MITHILA DEALERSHIP TASS(Tata Authorised Service Station) Other dealership & serviceability % OF PEOPLE 60 15 25
% OF PEOPLE

25%

15%

60%

INTERPRETATION

MITHILA DEALERSHIP Other dealership & serviceability

TASS(Tata Authorised Service Station)

According to my survey customers are most comfortable with the service of MITHILA MOTORS(DEALER).The spare parts available in MITHILA are sufficient and also the tools the mechanic use there are special tools provided by TATA MOTORS.Mainly the bonding and trust between the staffs and the customers in MITHILA is very good.Only 15% customers go to TASS as there is not so much staff present there.

Q.23

SPARE PARTS AVAILABILITY

% OF CUSTOMERS

37%

63%

47
SATISFIED DISSATISFIED

INTERPRETATION According to the survey 63% customers were satisfied with the spare parts available in MITHILA MOTORS.37% customers are also dissatisfied. Some customers said that even the common regular use parts are not available. Therefore sometimes they have to buy it from outside from their own pocket.

CHAPTER-7 RECOMMENDATIONS
Spare parts should be available in the workshop as & when required by the customers. Workplace should be increased for repairing as there is a queue formed in the workshop. Washing space should be increased. At least two supervisors and service engineer should be kept in the workshop to see whether the mechanics are properly doing the work and they need to guide them time to time.

48

At least 4 mechanics professional as well as non professional, are being given training in a year rather than two.

Proper estimate of the cost and the time taken to repair should be given before only.

Some customers were not knowing about the AMC (Annual maintenance cost) .The dealer should suggest it before only to all the customers.

During the training I even suggested the customers to please interact with the service advisor about their problems.

I also suggested to mithila motors that there should be separate service station for small & heavy vehicles. Mechanics should be increased as there is much waiting time for the customers. They should also keep more professional & trained mechanics for much faster & smart work.

One time work should not be done twice shortly afterwards by the mechanics. Mobile servicing should be spread over larger areas. Road test should be taken for every vehicle after the repairing is finished. One service advisor should always be there when the customer arrives in the front office to guide them.

FACILITIES

49

They should provide a toll free number so that customers can call anytime to check the status of work done.

They can make a good restaurant at the service station to make whole exercise enjoyable.

There should be separate washroom for customer and staff. Mithila motors should provide net facility to customers. This would create a service differentiation.

They must follow up with the customer because that gives the impression that TATA is really caring for them.

CONCLUSION
Customer Satisfaction plays pivotal role in any companys improvement and is the ultimate goal of any organization. Its great learning experience to work with TATA MOTORS. I would like to conclude that a heavy, medium & small commercial vehicle has a great market potential.

During the project I learned about H&MCV and SCV products of TATA MOTORS & the customers view about the product performance. I also came to know different views of the customers about the services provided by the service work stations.

I also suggested some of my views to the customers and also to the MITHILA MOTORS (DEALER) how they can make their service much better. I understood the 50

customers problems, found the solutions with the service advisor and explained to them. From the survey I found that some customers are dissatisfied with the product quality and some are dissatisfied with the services provided by the dealer. As the study concentrates to find the satisfaction level of customers of TATA commercial vehicle and from the findings it can be concluded that almost every area needs improvement whether it is product quality, services or spares provided by the dealer workshop. If these areas are improved systematically there is no doubt that customer will receive more satisfaction and the future of this company will be glorious in the field of automobile. At last I would say that I enjoyed every moment working with Tata Motors.

CHAPTER-8
BIBLIOGRAPHY Marketing Management - Philip Kotler. Business policy and Strategic Management. International Marketing- Lascu. India Today- magazine. 4Ps of Business and Marketing.

REFERENCES www.tatamotors.com. 51

http://www.india-today.com/btoday/20010930/cover2.html www.mahindra.com. www.ashokleyland.com www.thehindubusinessline.com/2002/03/08/stories/ http://www.automobileindia.com/india-automotive/automotive-trends.html http://www.tata.com/tata_sons/articles/20060818_rural_india.html http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

CHAPTER-9 ANNEXURES
QUESTIONNAIRES CUSTOMER FEEDBACK FORM Q1 When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS? Q2 Where did you take it for service? (Name of the dealer) Q3. How was the overall experience? Q4. How many TATA commercial vehicle have you used in the past 5 years? Q5. Q6. What type of work was required in your vehicle?(FC/ PS/PR/ WR) Did you have to make an advance booking?

52

Q7. If your vehicle was under warranty was it immediately accepted or it took time for a decision to be taken? Q8. Were you asked to pay a deposit or charged for lubricants? Q9. When the vehicle arrived at the dealership/ TASS, how long did it take for the vehicle to be taken into the workshop and open job card? Q10. How satisfied are you with the performance quality of Tata novus? Very satisfied..................................................... Quite satisfied.................................................... Very dissatisfied................................................ Q11. How frequently the maintenance costs occur? Q12. Q13. Did you interact with service advisor about your problem? Did he understand the problems? Was a road test taken? Did the workshop give you a proper estimate of time and cost?

Q14. Was it delivered on time? Q15. How frequently you change the tyre? Q16. What is the mileage of the vehicle? Q17. Did you go back to the workshop for the same problem shortly afterwards? Q18. How do you find the competence of mechanic in the workshop? Do they know their jobs well?

Q19. Will you recommend others for service in this workshop? Q20. Are you happy with the cleanliness and workshop infrastructure?

Q21. If you could make one suggestion that will help the dealer/ TASS improve their service to customers like you, what would be it?

53

GRAPHS AND CHARTS

INDIAS DEMOGRAPHIC DIVIDEND: A REASON FOR GROWTH

54

Ind ia s D e m o grap hic D ivide n

A 50.00 45.00 40.00 42.64 42.16 35.00 30.00 25.00

55

38.99

T R E N D S IN T H EA U

PRODUCTION IN

P r o d u c tio no fa
CA G R

MILLION

1 0 8 6 4 2 0 4 .8

15.4%

India's aut
12 2 0 0 0 -0 1 10 8 6
56

er in million

2 0 0

SEGMENT W

Growth Rate 4 year CAGR 25 20 15 10 5 0

Commercial Vehicles
23.5

11.3

Passeng Vehicle
57

MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

58

Domestic Sales

Competitive Advantage Of Tata Heavy & Medium Commercial Vehicle

100 90 80 70 60 50 40 30 20 10 0
loa e ar sp y ilit ab a il av ce an fin gy olo hn e tec am dn an ion t br sta t os ice rv ec se nc na tai in ma g din rts pa y cit pa ca

Tata H&MCV Others

59

PROFIT MARGIN

2500000

2000000

2304000

1500000 1399933 1329726

1000000

LPT 1613 TOTAL COST

LPT 2515

477887

407 EX TOTAL REVENUE

When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS ? PERIOD MARCH (07) APRIL (07) JAN-FEB (07) YEAR 2006 NO. OF CUSTOMERS 25 32 25 18

600000

500000

1920000

60

CHAPTER 10 CASE STUDY

THE RACE FOR ACE
ABSTRACT: This case study is an endeavor to unfold the success story and the challenges of one of the most successful commercial vehicles manufactured by Tata Motors i.e. ACE. The company realized that the entry level for the semi-urban and rural market was a product between three wheeler and a pick-up truck, at a price sensitive level. It put together a team to develop such a vehicle, and it came up with an ACE. Ace made a new segment called small commercial vehicle segment and is seen as an ideal vehicle for short, narrow village roads as well as long highway hauls, for the small bulky loads and large heavy ones. Indias first mini-truck- Tatas ACE was launched in May 2005 and sold 6,500 units in a month. Since May 2005 till date Tatas Ace has dominated the one ton four wheeler truck segment (SCVs). Ace is the only commercial vehicle of Tata Motors whose demand exceeded the supply. The Tata Motors plant at Pune which manufactured Tatas Ace had to increase its production to 100% i.e. annual increase of production from 30,000 units to 60,000 units in the period 2005-2006. Though Ace has performed exceptionally well for Tata Motors since it was launched in the year 2005 and still dominates in the market in its own segment, but the future of Tata Motors is full of challenges with all its competitors viz. Bajaj Auto, Force Motors, Eicher, Piaggio, Atul Auto and Ashok Leyland are all ready to counter ACE, though its always a tough task to compete with the products of Tata Motors. The case study tries to find out the reasons for the success of ACE and the challenges ahead.

61

THE RACE FOR ACE

Ace has several firsts to its credit. Tata Motors will outsource more than 90 per cent of its components compared with an average 60 per cent for its other vehicles. The exercise threw up, according to company engineers, the first two-stroke diesel engine in the world to be used in a commercial vehicle. Ace with sport car-like interiors and its noise and vibration levels are closer to Indica's than to the truck family it belongs to. Today, nearly all Tata vehicles are manufactured at its Pune factory. Ace will lead the company to set up assembly units near the markets, setting off another big change in manufacturing strategy. The project also sets another benchmark - it cost all of Rs 200 crore over five years - the lowest in Tata Motors' recent history for a new product. The learnings are expected to accelerate chairman Tata's Rs 1 lakh-car dream. Be sure, Ace is not just a small product for Tata Motors. The vehicle is expected to replace three-wheeled goods carriers and, later, even passenger vehicles in small towns. Small traders and farmers buy 136,000 such vehicles every year for transporting goods. The number has increased rapidly in the last two years, with sales growing at 24 per cent.

In three years, analysts say Tata Motors may well be selling over 60,000 vehicles and Ace could contribute up to 10 per cent of all commercial vehicle sales. It will also take

62

Tata products to new customers at the lower end of the market - the ones who may turn loyal customers to Tata's larger vehicles as business grows. Ace, which is priced at Rs 2, 2,50,000-2,35,000 will be available at a down payment of a mere Rs 20,000. "In the short run, it is going to be one big brand ambassador for Tata Motors.

FEATURES OF ACE VERSATILITY The ACE can be conveniently used in cities as well as in rural areas. 12 tyres for the first time in its class give higher ground clearance and higher loading capacity resulting in better performance on and off the road. The truck-like strength of the front and rear leaf spring suspensions coupled with the shock absorbers provides a smooth ride and great driving comfort. The rigid front axle is designed specially to weather Indian conditions. With a small turning circle of 8.6m, the ACE can be safely and easily navigated, both in narrow village streets and in dense city traffic. SAVINGS The performance of the engine as well as the comfortable conditions for the driver allow the ACE to travel over 500 kms in a day. Low operating costs and the versatility offered through features like its flat, large loading area and small turning radius, give a fantastic opportunity to earn higher business revenue and higher profits, everyday. All this with big Tata reliability make the ACE the best business partner for one and all. STYLE Car-like interiors and numerous accessories allow you to ride in style A spare wheel attached to the lockable swing frame at the rear Twin wiper for safe driving in rain

63

Horn pad on steering wheel Easily accessible hazard warning switch for emergency Engine start and stop with key Styled dashboard with tray, digital clock, radio fitment provision, utility tray and clearly visible instrument cluster Lockable glove-box for keeping valuable documents PERFORMANCE The 700cc engine delivers a power of 16 HP @ 3200 rpm and a torque of 3.8 mkg @ 2000 rpm. It is also eco-friendly and meets BS II and BS III standards. The water-cooled, twin -cylinder IDI engine has an overhead cam shaft, temperature sensitive coolingsystem and rotary fuel injection pump, which together give high fuel efficiency and lowmaintenance operation. This also translates to longer life and lesser downtime. With the lowest loading height of 675 mm, heavy loads can be conveniently placed in the load body. The 4-forward synchromesh +1 reverse gear box gives smooth gear shifting. COMFORT Several big and small features have been added to ensure comfort for the occupants, even on long rides. The fully-built sheet metal cab with doors, roof lining, and floor mat for hear insulation and trims protect the occupants from rain, heat and cold. The ventilation ducts, winding door glass and rear windows ensure good ventilation and continuous air flow at leg and face level. Seats with soft cushion and back support ensure complete driving comfort. Other Features Sun visor for protection from direct glare Car like combi-switch with rotary switches for lamp and wiper control

64

Control pedals, gear shift and parking brake ergonomically positioned for maximum comfort and easy access Higher door opening angle and low floor height for easy boarding SAFETY Designed and manufactured using high strength steel, the ACE meets all Indian safety norms - a novel feature in this class of vehicles. The ACE meets norms for frontal crash, roof crush, and rear wall strength - assuring the utmost safety of the driver and the codriver. Seat belts are also provided for both occupants. High braking performance is given through front disc brakes and rear drum brakes. Driving visibility is excellent through the large windscreen, window glasses, large overhead rear-view mirror and the large rear window. Large-sized, round headlamps with bright halogen bulbs provide excellent lighting for night driving. Reversing is made easy and safer with the help of a 2-box tail lamp with in-built reflector and the bright reverse lamp at the rear.

KEY ISSUES AND CHALLENGES FOR ACE 1. High Cost High cost is one of the major challenge Ace will have to face after the launch of piaggios APE Truck. The price of Tata Ace is Rs 2,50,000 in comparison to its competitor piaggios-APE which is priced at Rs 2,15,000, making a difference of Rs 35,000 between the two which is quite high considering both Ape and Ace comes in the same category of small commercial vehicles (SCVs) and both of them having one ton load carrying capacity. 2. Fuel Efficiency and power train

65

The major threat for Ace is that its main competitor Piaggios- Ape Truck offers a mileage of 20kmpl against Tatas Ace which offers a mileage of 14kmpl. So Ape Truk definitely has an edge over ACE in terms of mileage. The other important difference is that even Ape truk claims a maximum speed of 65km/hr whereas Ace claims a maximum speed of 64km/hr.Ape also has a 6 speed gearbox in comparison to Ace which has 5 speed gearbox. 3. Style Even the style of piaggios Ape-Truk is far more attractive than the Ace. The cabin of Ape is given the look af a car and the tyre of Ace are radial which is weaker than the tyres of Ape which has used nylon tyres.The Ace uses the traditional round shaped headlamp whereas Ape provides a very trendy headlamp far good looking than the traditional headlamp. This definitely has attracted customers to go for Ape-Truk in comparison to Ace which does not have a trendy look. It is also available in more colours than provided by Tata. Even Hyundai is planning to launch a a SMV in the same segment which will eliminate the kind of monopoly enjoyed by Tata Ace in the small commercial vehicle segment which also was Tatas own creation. 4. Aggressive Marketing Policy Tatas Ace will have to give a thought on its marketing of Ace as its main competitors are following aggressive marketing policies to counter attack Ace in the market. The Tata Ace has already penetrated in both the urban and the rural market but the competitors are also trying there best to cut the share of Ace in the small commercial vehicle segment and make their presence felt in the market. Ape-Truk has decided to open large number of authorized outlets and selling points targeting the Ace. They have kept their prices lower than the Ace upto 30,000-35,000 which is an aggressive decision.

ANALYSIS AND CONCLUSION

66

Looking at the present market scenario we can say that it was Tata who owns the credit of giving a new commercial vehicle segment to India i.e the small commercial vehicle segment. Before the introduction of Tatas Ace the market was dived into the following segments viz., heavy commercial vehicles, medium commercial vehicles and light commercial vehicles including the three wheeler cargo carriers. Tata was lagging in the light commercial vehicle segment. The credit goes to Tata as it performed a survey of the customers and understood the need of a low cost commercial vehicle which is between a three wheeler carrier and a pick-up truck. The Ace was then the gift to the price sensitive customers. Its almost three years when Ace was launched in India by Tata and since then it has performed well and has forced the other automobile manufacturing companies to think and come up a product which can compete with the Ace. And the time has arrived when the competitors have replied and replied well with Piaggios Ape-Truk being the first one and the companies like Bajaj, Eicher, Atul auto an Force Motors will follow in the race to capture the Ace. Tata will have to think in order to maintain there supremacy in the small commercial vehicle segment and may be bring some changes in their product. They will have to look into the cost of there production and also the marketing strategy which has to be more competitive now after so many companies are entering in the small commercial vehicle segment. Since the number of companies providing the small segment commercial vehicles will increase, the customers will now be poised of various choices. Prices are bound to decrease further as there will no more be monopoly enjoyed by Tatas Ace and monopolistic competition will rule the prices. This also indicates that Ace which is till now experiencing the growth stage may now enter into the mature stage of the product life cycle. Decline stage may also follow unless a good strategic decision is taken by the company. Aggressive marketing will also become the need of the hour. Product modification and changes as per the market demand is needed even for a product which may have ruled the market in its own segment for consecutive three years.

67

END NOTE The brand Tata is itself more than enough to speak the success story but to maintain this success story in this cut throat competition in automobile sector.Tata not only needs to maintain cost efficieny but it also has to maintain its century old brand image to retain its position as the leader in the automobile sector.

REFERENCES http://www.automobileindia.com/india-automotive/automotive-trends.html http://www.tata.com/tata_sons/articles/20060818_rural_india.html http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

68

CHAPTER 11 SYNOPSIS

69

THE EFFICIENCY OF THE PRODUCT AND CUSTOMER SATISFACTION REVIEW

Name: Ajit Kumar. Industry Guide: Mr. Ran Vijay Kant. Faculty guide: Mr. Nishant Rai.
The objective of the training was to ascertain the performance of the selected products and to find out the quality of service provided by the authorized service station of Tata Motors vehicles (commercial vehicles), to know the level of satisfaction of the customers of heavy and medium vehicles of Tata Motors from these service stations and to ascertain the areas of improvement. Tata Motors holds a major share in commercial vehicles where India holds 5th position in manufacturing of commercial vehicles in the world. Five products viz. LPT 1613, LPK 2516 TC, LPT 2515 TC and LPT2515 TCIC, 407 EX and ACE was selected for the above mentioned purpose. The competitors of Tata Motors were also taken into consideration while doing the research. The project helped me in improving my research skills and managerial skills. My analysis after the research is that there is a need for improvement in the product quality, service provided at the service stations and the spare parts provided by the dealers of the workshop. Lack of service stations in relation to the number of customers for servicing at the service stations is a major concern which needs to be taken care of and which is necessary to increase the customer satisfaction. My industry guide Mr. Ravi Kant (Manager Marketing) is a source of great inspiration for me. He was very helpful and cooperative. He used to guide me whenever I had any problem. I am really thankful to him for the support and guidance he has extended to me during my training.

70