CUSTOMER RELATIONSHIP MANAGEMENT

In Automotive sector & TATA motors

 ACKNOWLEDGEMENT

Before we embark upon the details of this project, let us take this opportunity to express our
heartiest gratitude towards the people who have provided invaluable help & support through
the entire duration the project
We are thankful to our facilitator Mr. S. Suresh for his continuous guidance & support. We
would like to thank him for
giving us excellent suggestion
Sharma

Pandey

Agarwal

Agarwal

Group No. 9
SUBMITTED BY:

and affectionate, encouraging

through development of
project and for devoting their
precious time.
08609065

08609066
Aggarwal

Agarwal
08609068
08609034

08609061

We offer thanks to them for co-

08609012
Vaibhav

Tanushre

Punit

Gaurav

Aashi
Vinay G

ordination and grateful to all

our well-wishers who extended
their support and to the entire
staff of MBA Department of
Jaypee Business School for their valuable help throughout the work
AASHI AGRAWAL (08609061)

GAURAV AGRAWAL (08609066)

PUNEET AGGARWAL (08609012)

TANUSHEE AGARWAL (08609065)

VINAY G PANDEY (08609068)

VAIBHAV SHARMA (08609034)

OBJECTIVE

To understand the CUSTOMER RELATIONSHIP MANAGEMENT in automotive industry (

in passenger cars ) & than sync it with CRM of TATA motors .

INTRODUCTION OF TOPIC

To understand the real business scenario about the practice of CRM in Indian Automotive
industry & than compare it with TATA motors in passenger cars.
The automobile industry in India is the tenth largest in the world with an annual production
of approximately 2 million units—is expected to become one of the major global automotive
industries in the coming years. A number of domestic companies produce automobiles in
India and the growing presence of multinational investment, too, has led to an increase in
overall growth. Following the economic reforms of 1991 the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. The monthly sales of passenger cars in India exceed 100,000 units.

According to Society of Indian Automobile Manufacturers in 2008-09 the cumulative growth

of the Passenger Vehicles segment during April 2008 – March 2009 was 12.17 percent.
Passenger Cars grew by 11.79 percent, Utility Vehicles by 10.57 percent and Multi Purpose
Vehicles by 21.39 percent in this period.

BRIEF ABOUT COMPANY

Tata Motors Limited is India’s largest automobile company, with revenues of Rs. 35651.48
crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment,
and among the top three in passenger vehicles with winning products in the compact, midsize
car and utility vehicle segments. The company is the world’s fourth largest truck
manufacturer, and the world’s second largest bus manufacturer.

The company’s 23,000 employees are guided by the vision to be “best in the manner in which
we operate best in the products we deliver and best in our value system and ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth of
India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh) 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 company’s dealership, sales, services and spare parts network
comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars
in India.

Tata Motors, the first company from India’s engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea’s second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new products
in the Korean market, while also exporting these products to several international markets.
Today two-thirds of heavy commercial 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.
Hispano’s presence is being expanded in other markets. 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 company’s pickup vehicles in Thailand. The new
plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the
Xenon having been launched in Thailand at the Bangkok Motor Show 2008..

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 labour and environment standards in
compliance with the principles of the Global Compact. In accordance with this, it plays an
active role in community development, serving rural communities adjacent to its
manufacturing locations.

METHODOLOGY

We collected information from both primary & secondary data. We divided our group of 6
members into 3 groups of 2 each and visited various dealear’s showroom of TATA motors,
MARUTI & HYUNDAI and asked their respective relationship managers about the
companies offerings. To get detailed knowledge of CRM applications & practice in real
business scenario.
 Findings & Analysis

BUSINESS STRATEGY & CRM

Three key phases:

• 1. Customer Acquisition.
• 2. Customer Retention.
• 3. Customer Extension.
Three contextual factors:
• 4. Marketing Orientation.
• 5. Value Creation.
• 6. Innovative IT.

1. Customer Acquisition - This is the process of attracting our customer for the first their
first purchase. We have acquired our customer.
2. Customer Retention - Our customer returns to us and buys for a second time. We keep
them as a customer. This is most likely to be the purchase of a similar product or service,
or the next level of product or service.

3. Customer Extension - Our customers are regularly returning to purchase from us. We
introduce products and services to our loyal customers that may not wholly relate to their
original purchase. These are additional, supplementary purchases. Of course once our
loyal customers have purchased them, our goal is to retain them as customers for the
extended products or services.

4. Marketing Orientation - means that the wholes organisation is focused upon the needs
of customers. Customer needs are addressed by the Three Levels of a Product whereby the
organisations not only supplies the actual, tangible product, but also the core product and
its benefit, and also the augmented product such as a warranty and customer service.
Marketing orientation will focus upon the needs of consumers for all three levels of a
product. (N.B. 'market' orientation and 'marketing' orientation are not the same).

5. Value Creation - centres on the generation of shareholder value based upon the
satisfaction of customer needs (as with marketing orientation) and the delivery of a
sustainable competitive advantage.

6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should

be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are
not the entire story for CRM, it is vital to its success. CRM software collects data on
consumers and their transactions. Huge databases store data on individuals and groups of
individuals. In some ways, CRM means that an organisation is dealing with a segment of
one person, since every consumer displays different purchasing habits and preferences.
Organisations will track individuals, and try to market products and services to them based
upon similar buyer behaviour seen in other individuals (e.g. When Amazon tells you that
customers that viewed/bought the same product as you, also bought another product).

In AUTOMOTIVE industry , Companies focus upon the needs of customer, not only
providing the tangible product i.e. CAR but also augmented product such as warranty,
customer service, providing more services than competitors, distributing free gifts, free
vehicle check-up, etc & now-a-days almost every big company use CRM software in
collecting data on consumers & their transaction, providing them customised service .
After every new launch of a car, companies give information about that same product to
their loyal customers. Not only companies stick to that car only but tries to sell accessaries
also like seat covers, Alloy wheels, music system so that customer doesn’t have to go to
several places & quite often dealers give discount also in these items as a CRM business
strategy .

Tata Motors has taken a phased approach to the implementation, with the goal of
achieving success in each phase before moving forward. Phase 1, currently under way,
focuses on capturing customer and vehicle data and automating routine tasks. Phase 2 will
focus on leveraging data to improve customer interactions and streamline product
development and planning. Phase 3 will focus on tuning the system and delivering
additional value-added services to customers.

To address its competitive challenges, Tata Motors began standardizing its customer-
facing business processes companywide, laying the foundation for stronger dealer
relationships, improved operational efficiency and effectiveness, and a better customer
experience. This has posed numerous challenges, as it involves working with 250 dealer
organizations and more than 1,600 locations staffed by more than 10,000 salespeople
across India.

CUSTOMER KNOWLEDGE
 Customer knowledge refers to understanding your customers, their needs, wants and aims
is essential if a business is to align its processes, products and services to build real
customer relationships.
Customer knowledge can be approached from two ends. Firstly, you could say that customer
Knowledge is the "collection of information and viewpoints that an organisation has
about Its customers". Using this definition, the role of customer knowledge management is
to capture and organise this data to allow it to be shared and discussed throughout the
organisation.
An alternative definitive of customer knowledge is that it is the "collection of information
and insight that you need to have to build stronger customer relationships". From this
point of view what you currently know about your customers may not be sufficient. You
may need to put in processes and systems to gather more information and data about who
your customers are, what they do and how they think.

CUSTOMIZATION:

Customization bonds approach suggest that customer loyalty can be encouraged through
intimate knowledge of the individual customers and through the development of one-to one
solutions that fit the individual customer’s needs.
TATA MOTORS believes in 'Customer is THE KING', and also knows well how to make
them feel One. They have an extensive follow up programme and prompt service. This helps
them to change their strategies and customize their services to fit developing customer needs.
For this purpose, they always request the customers to fill in their feedback form that follows
the service/repair visit. If a low score is received on their feedback form, they would go out
of the way to apologize for the error. Simultaneously, they provide technicians who visit their
home place in order to attend the issues and rectify them to their satisfaction level. Follow up
calls are made to ensure that how efficiently their problems were resolved.

RELATIONSHIP POLICY:

The customer is tied to the company primarily through financial incentives – lower prices for
greater volume purchases or lower prices for customers who have been with a firm a long
time.
 As we know, the acquisition cost is not the only cost one faces when buying a car. it
may not necessarily be affordable to maintain, as some of its regularly used spare
parts may be priced quite steeply. Tata Motors provides very good after sale services
to its customers. It is in the economy segment that the affordability of spares is most
competitive as compared to others.

 It also provides its long term customers either with stable prices or lower price
increases as compared to the new customers.

 TATA motors provides financial incentives and rewards to the customers who bring
more business to their service station by recommending and spreading good word of
mouth to others about their services.

 TATA Motors provides free of cost servicing to customers having Tata cars within a 

two­year warranty time period. TATA motors also offers an extended paid­warranty 

program  marketed under the brand, “Forever Yours” for the third and fourth year 

after purchase. The extended warranty program helps in strengthening contact with 

the customer and also  increase the revenue generated from sale of spares, accessories 

and automobile­related services. 

CRM Systems and Implementation

These are some of the key features for which AUTOMOTIVE SECTOR applies CRM
software:

 Sales management shares customer information between sales, service and parts
departments

 Vehicle management gives complete vehicle data along with sales, service and
financial history, as well as dealer and license information and owner and contact
information

 Activity and e-mail management systems link e-mails with associated contacts, leads
and opportunities

 Service management increases customer loyalty by enabling consistent, personalized

interaction across all customer touchpoints including, telephone, e-mail, Web,
wireless devices and in-person meetings.

Tata Motors implemented Oracle's Siebel Automotive, a comprehensive customer

relationship management (CRM) solution designed specifically for companies in the
automotive industry. Seamlessly integrated with Tata Motors’ dealer management system and
SAP back-office applications, Siebel Automotive has delivered significant benefits across the
extended organization, including improved customer satisfaction, increased revenue and
productivity, and reduced costs.

By tightly integrating Siebel Automotive and its dealer management system, TATA has
streamlined transactions and ensured that dealers capture customer data as a part of their
normal operations. The solution provides a 360-degree view of customers to the extended
organization, with appropriate visibility controls to ensure that one dealer is not privy to
information from another. To further enlist dealer support, Tata Motors involved dealers
throughout the solution configuration and deployment process. “Integrating Siebel
Automotive with our dealer management system ensured that our dealers would immediately
see the value in the solution,” Sreenivasan explains. “This has helped us overcome the usual
resistance to change and gain rapid acceptance from our dealers.”

Siebel Automotive has been closely integrated with a wide array of SAP back-office
applications, including applications inventory management, fulfillment, and parts location.
Pricing and tax calculations can be adjusted for each dealer’s requirements. In addition,
comprehensive sales and reporting functionality built into Siebel Automotive enables TATA
to distribute sales targets to its dealers and roll up sales numbers across the country.
Tata Motors also liked the fact that Siebel Automotive provides multiorganization
support, can be deployed easily over the Internet, and provides robust partner
management capabilities—ideal for Tata Motors with its far-flung dealer network.
Further, the user-friendly interface has simplified the process of training Tata Motors’
10,000-plus dealer sales force.
Covering a country with an area of 3.3 million square kilometers (or about one-third the
size of the U.S.) also required an innovative communications solution. Tata Motors links
its 1,600 customer touchpoints with its centralized data center in Mumbai using a
combination of VSATs and high-speed virtual private networks.
Siebel Automotive has already begun to deliver benefits for Tata Motors’ dealers
throughout India. “Overall, Siebel Automotive has transformed our organization and
made it truly customer-centric,” says Sreenivasan. “We’ve overcome the challenges of
relying on disparate sources of information, as well as having inconsistent business
processes. Today, our employees and dealers are much more responsive and can serve
 customers more efficiently and effectively—drawing upon real-time, centralized
customer and vehicle data.
“One of our first dealers to install Siebel Automotive said that his sales volume doubled
in three months without the need for additional manpower,” he continues. “Another
dealer said that for the first time he was able to view his entire stock of vehicles and how
his inventory was aging, improving his control.”
Siebel Automotive has also helped dealers respond to customer queries regarding
vehicles that aren’t in a dealer’s stock, but which can be ordered directly from Tata
Motors.
“Within the first year of implementing the solution, we are targeting improvements of 5
to 10% in customer satisfaction, revenue growth, operating cost reduction, and
productivity gains,” says Sreenivasan. “These numbers should increase considerably over
time.”
He concludes, “Siebel has been very committed to helping us in all aspects of the project.
Combining Siebel Automotive with our dealer management system is unique, so we have
needed quality support. Siebel has played a major role in getting us to where we are
today.

Recommendations

 Many organizations operating in automobile market still do not differentiate their

CRM activities at the segment level. They contact each prospect with the same
Frequency instead of applying a level of effort consistent with the cost of acquisition
and profit potential. Their unrefined use of resources not only leads to wasted
investment but can cause annoyance among customers who are either being
oversupplied or undersupplied with attention.

 Companies keep the name of financing company as the owner of the vehicle and in
many cases does not have the record of effective owner of vehicle who was
responsible for the purchase decision.
  In CRM Indian Automobile industry has to learn much from other service industries
such as airline industry. Each time a customer approaches a service agent, his entire
history was flashed on screen.

 Customer knowledge can be used to give customer specific offer on purchase of

second vehicle in family.

 Services such as pick and drop, on-road service, should be provided at TATA service
station , which are common in other companies.

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 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 country’s economic growth and protecting the environment. With the initial
financial backing of the giant parent company, Tata Group, the division has built a strong
business over the past 60 years and continues to show strong financial results. The continual
improvement and introduction of new products in the market have allowed it to successfully
enter as well as dominate the automobile industry in India. With increasing sales, employees,
product offerings, manufacturing facilities and distribution centers along with expansion
outside India, the company seems to have a promising future.