Professional Documents
Culture Documents
INDUSTRY GUIDE
COLLEG GUIDE
MR.DEEPAK K OKTE
PROF. SAMBIT BANIK
TERRITORY MANAGER
KOLKATA
EIILM,
(MAY JUNE)
Declaration
I hereby solemnly declare that the project titled demand generation and levers for small
commercial vehicle (Tata ace ht) submitted by me is a bona fide work based on my own
understanding and has not been copied from any published source or website
Ranjeeta kumari
Territory manager
Archi bardhan
PGPM (09-11)
Eiilm, Kolkata
ACKNOWLEDGEMENT
I would like to thank my project guide, Mr. Deepak okte, manager sales SCV, Tata Motors,
under whose valuable guidance and support, I have been able to complete summer
internship project. He has been a constant help throughout.
I would like to thank Mithila motors the vendor of the small commercial vehicle, to source
me with the useful data and Mr. Akshay and Miss Kiran who always found out time to
answer my unending queries.
I would also like to thank Prof. Sambit banik, my mentor, who constantly helped me in
every possible way.
OBJECTIVE
Demand generation and levers for small commercial
vehicle TATA ACE
The objective of the project is to generate demand for small commercial vehicle (scv) Tata
Ace in FMCG sector as well as generate demand of Tata EX & HT model to the customer
already using Tata Ace. The research on the project helped me in knowing the function of
the multi utility vehicle as well as price and present competitor of the vehicle. It also helps
me in knowing the strategies adopted by the company to compete as well as different sales
promotion tactics to sale.
In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the
Middle-East by the end of 2009. In 2006, it formed a joint venture with the Brazil-based
Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fullybuilt buses and coaches for India and select international markets. Tata Motors has
expanded its production and assembly operations to several other countries including
South Korea, Thailand, South Africa and Argentina and is planning to set up plants in
Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly
operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26
countries across 4 continents.
country. Investments in making auto parts by a foreign vehicle maker will also be
considered a part of the minimum foreign investment made by it in an auto-making
subsidiary in India. The move is aimed at helping India emerge as a hub for global
manufacturing and sourcing for auto parts. The policies adopted by Government will
increase competition in domestic market, motivate many foreign commercial vehicle
manufactures to set up shops in India, whom will make India as a production hub and
export to nearest market. Thus Tata Motors will have to face tough competition in near
future, which might affect its growth negatively.
Currently, the presence of Suzuki through its subsidiary, Maruti Suzuki in the Indian
market may also be alarming. Maruti has aggressively launched family cars to undermine
the Tata models. Tata has continued to be strong in the MUV and SUV sector due to lack
of competition and correct pricing. However, Tata now faces stiff competition from fellow
compatriot Mahindra Group as well as multinational brand like Toyota and Chevrolet. In
addition, the growing presence of fellow Indian competitors, Mahindra and Force Motors
not only in the Indian but also in the Global market may affect Tata's sales. Mahindra and
Force have formed joint ventures with Renault and MAN respectively. Mahindra has also
formed a 51:49 JV called Mahindra Navistar with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business Ashok Leyland, which is the second largest commercial manufacturer in India has
remained Tata's biggest competitor in the Indian heavy commercial vehicle market and
with its acquisition of Czech Republic-based Avia it may manage to increase its presence
in neighboring markets such as Sri Lanka, Nepal where Tata Motors has a monopoly. To
counter the growth of these various companies Tata has come up with revised or new
models like Indica Vista, Indigo Vista, Xenon, Tata World Truck and a aggressive
marketing policy.
TATATATA
MOTORS LTD
CVBU
PVBU
HCV
BUSE
LCV
CARS
ICV
SCVSCV-
As our area of concern was commercial vehicle business unit let us look at the hierarchy of
the CVBU.
The regional offices of Tata Motors ltd are located in four regions:
R O EAST Kolkata
RO WEST Mumbai (Thane)
RO NORTH Delhi
RO SOUTH Chennai
The Jamshedpur area office comes under RO EAST where the regional manager is Mr.
Habib Shahid. There are five area offices located in the east region:
1. Jamshedpur & Ranchi for Jharkhand
10
At present Tata Motors has around 600 dealers operating in entire India with 12000 service
stations TASS (Tata authorized service stations) and 10000 company trained mechanics. In
the state of Jharkhand itself around 31 TASS are located.
12
Stage I
Enquiry/Contact
C0
Stage II
Quotation
Stage III
Advance Payment
C1
Stage IV
Vehicle Delivery
C2
C3
Prospect
Customers
There
are 4 steps in which Tata Motors CVBU categorize their customers in the short term
(Universe)
The Customer Acquisition process establishes how CVBU tracks Customers (including
customers such as new, potential, repeat, competition, lost customers). This helps CVBU
to track performance against the sales target set on virtually on daily basis, and helps Tata
13
Motors to achieve those targets. Thus CVBU uses information gathered in L&L
approaches both for Short term and Long term in order to retain customer focused in their
actions and to continuously satisfy the changing needs of the customers.
FINANCING A VEHICLE
In the preliminary stages of the project I was to learn how to finance a vehicle, which
seemed to be a necessity at the latter part of the project. At Tata Motors CVBU Marketing
and Sales Division every individual even the Summer Trainees are taught how to finance
a vehicle before entering the field. This is important because the customers often ask
several questions on how to finance the vehicle and which scheme is the most
14
suitable/profitable to them at that point of time and if anyone fails to satisfy its customers
quest one is likely to suffer the loss of a customer which is always fatal to any industry and
company.
Mr. Deepak K Okte (TSM, SCV-C) taught me how to finance a vehicle and what are the
documents required during the procedure. Tata Motors provides finance to its customers
through Tata Motors Finance and Sriram finance. At the end of the project I can comment
only on one factor and that is while financing one should always see two things:
1) The intention
2) The capability
3) To make it easy for potential customers to own Tata Motors vehicles, Tata Motors
Finance Ltd. ventured into vehicle financing way back in 1957.Today, Tata Motor
Finance (TMF), the in-house financing arm of Tata Motors, provides a single window
service to customers by being accessible to them through the dealers. TMF has
partnered the growth of many single truck operators, who have evolved to the status of
fleet
Owners. Besides catering to individuals, TMF offers specially designed finance products
for fleet operators and institutions. Currently, TMF has crossed 2,00,000 live contracts, and
is among the top vehicle financiers in the country.
Tata Motors Finance strives to ensure speedy processing of contracts which are either
cleared directly by the dealers or are approved by their field staff. The contracts are usually
finalized within 1 to 3 working days abiding by its Fair Practices Code 2008.
To calculate whether the customer is eligible for giving loan there is a RSPM (Risk
Scoring and Pricing Module) in which there is a list of questions which are asked by the
sales executive to the customers which later on are fed into the software which responds
whether the prospective customer is eligible for loan or not and what rate of interest shall
the loan be given.
15
LINE OF BUSINESS
TATA ACE
TRUCKS
TATA 207 RX PU
MAGIC
WINGER PASSENGER
TOTAL SALES
107872
107714
11125
45223
5698
16
6
7
8
9
10
11
LCV TRUCKS
ICV TRUCKS
LCV BUSES
ICV BUSES
M&H CV BUSES
TATA 407
TOTAL
21921
19749
12706
4302
16757
4090
357157
Various developments have led to rise of new models. The newly launched models in this
segment are:
TATA ACE EX
ACE EX, Indias first mini truck now comes with a EX advantage comes with a 5 speed
gear box with an overdrive to take your business with farther locations in less time. Along
with a bigger 13 radial tyres and better clearance, which help in off roads deployment?
Ace ex comes with an electronic start stop & start arrangement which helps in increasing
mileage. Now earn and save more with the new ACE EX.
17
A MINI ELEPHANT
Small is big
18
19
TATA ACE
EXMODEL SPECIFICATION
Engine
Model
Type
Diesel Engine
Capacity
Max. Output
16 HP @ 3200 rpm
Displacement
700 cc
Special items
Clutch
Gear Box
Type
Steering
Brakes
Type
Front Brakes
Disc brake
Rear Brakes
Parking Brakes
Suspension
Front and Rear: -
Shock Absorber: -
155R 13 LT 8 PR Radial
Dimension (ft)
Length
Width
Height
Wheel base
Front Track
Rear Track
loading deck length
loading deck width
Height of side panels
Loading height from the ground
Min Turning Circle Dia
Fuel Tank
12.4671916
4.92125984
6.10564304
6.88976378
4.29790026
4.36351706
7.21784777
4.92125984
0.98425197
2.25721785
8.6m
30 liters
Performance
Max. speed
Max. Gradeability
70kmph
21%
Weight
21
Max GVW
Kerb Weight
Seating capacity
1550kg
815kg
Driver + 1
Type
CAPACITY
Max. Output
16 HP @ 3200 rpm
Max.Torque
Displacement
700 cc
Special Item
Clutch
Gear Box
Type
STEERING
BRAKES
Type
Front Brake
Disc brake
22
dia
Rear Brake
Parking Brake
SUSPENSION
Shock Absorber
DIMENSION (FT)
Length
Width
Height
Wheel base
Front Track
Rear Track
Loading deck length
loading deck width
Height of side panels
Loading height from the ground
Min Turning Circle Dia
Fuel Tank
12.4671916
4.92125984
6.05314961
6.88976378
4.26509186
4.33070866
7.02099738
4.69160105
0.98425197
2.21784777
8.6m
30 liters
PERFORMANCE
Max. speed
Max. Gradeability
64kmph
22%
WEIGHT
23
Max GVW
Kerb Weight
Seating capacity
1550kg
815kg
Driver +1
EXTRA
EXTRA
EXTRA
EXTRA
24
SPEED
MILEAGE
REVENUE
SAVING
SMALL IS BIG
25
26
RESERCH PROCEDURE
RESERCH OBJECTIVE:
To generate demand.
To find out customer satisfaction index.
To know customer preferences for a small commercial
vehicle (SCV).
RESERCH PROCEDURE:
DATA SOURCE-This methodology include both,
Primary data collection included simple questionnaire. This questionnaire has both
closed end questions as well as opened end questions. Primary data was collected in both
ways while meeting people personally and through telephonic conversation. Personal
interview was taken to FMCG distributor and telephonic conversation with the existing
customer of Tata Ace.
Secondary research; via Internet,
27
SAMPLING PLAN:
In sampling plan, decision about sample unit, sample size and sample procedure is taken.
28
DATA INTERPRETATION
29
HIRE
It was found that 11 customer (FMCG distributor)use their own vehicle for delivering
goods to retailers .Only 1 customer hire vehicle for delivering goods to retailers.
30
Question: 2
Which vehicles 3 wheelers or 4wheelers
10
9
8
7
6
5
4
3
2
1
0
3 WHEELER
3&4 WHEELER
9 customer use 3wheeler and rest 3 use 3as well as 4wheeler for distributing goods to
retailers.
31
QUESTION: 3
Which company vehicles
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
BAJAJ
PIGGIO
TATAACE&BAJAJ
MAHINDRA
ALL FOUR
It was found that 4customer use Bajaj, 3 customer use Piaggio, 2 customer use both
Tata ace &Bajaj and only one customer use the entire 4 vehicle.
Following are the reason for using 3 wheelers &4 wheelers.
3wheelers are used to deliver goods to local market.
4wheelers are used to deliver goods to far distinct places.
32
QUESTION: 6
Awareness of Tata Ace
33
QUESTION: 6
Interested in Tata Ace
8
7
6
5
4
3
2
1
0
INTERESTED
NOT INTERESTED
It was found that only 5 customers are interested to purchase Tata Ace and rest 7 are not
interested to purchase because of parking problem. The most common feedback is that
they distribute goods only in Jamshedpur and Tata Ace cannot go in all the area of bistupur
and sakchi, because Tata Ace required more space for parking then 3 wheelers.
34
70
60
50
40
30
20
10
0
HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY DISSATISFIED
It was found that maximum customer is highly satisfied with the vehicle performance i.e.
60customer is highly satisfied 23 customer is satisfied 15 is dissatisfied and 5customer is
highly dissatisfied with the vehicle performance.
The customer who is highly dissatisfied is because of servicing problem. The reply that
most of the spare parts are not available and take more time then required.
35
QUESTION: 2
Reasons behind dissatisfaction
12
10
8
6
4
2
0
ENGINE
MILEAGE
PICK UP
SERVICING
Engine 10 customer says that they have problem in engine. They reply that engine become
excess hot as well as crank shaft break down easily.
Mileage 4 customer replies that the mileage of the vehicle is not good it consume more
diesels.
Pickup 6 customer says that the vehicle doesnt give good pickup. They reply that some
times it is difficult to start the vehicle.
Servicing problem: 5 customers reply that they dont want to purchase this vehicle
because of servicing problem. They say that most of the spare parts are not available and
take more time then required even for minor processes.
36
QUESTION: 4
Agree to purchase
90
80
70
60
50
40
30
20
10
0
YES
NO
26 customers are ready to purchase Tata ace as well as they will recommend their friend to
purchase this vehicles
37
FINDINGS
In FMCG sector 91% of the surveyed customers use their own vehicle for delivering
goods to retailers and 9% customer hire vehicle for delivering
Only 42 % customers in FMCG sectors are interested to purchase and rest 58%
customers are not interested to purchase because of parking problem.
58 % of Previous Customers are highly satisfied 22% are satisfied with the vehicle
performance and they will purchase the vehicle again in future
5%customer is highly dissatisfied because of servicing problem and they will not
purchase Tata Motors vehicles.
38
RECOMMENDATION
Tata Ace needs to improve more on some technical aspects like engine, mileage,
torque, pickup, etc. More over, the wheel of the vehicle should be increased to carry
heavier loads.
As most of the spare parts of the vehicle are unavailable in local areas, Tata
Motors
should make sure that all the spare parts are readily
available in the nearby agencies to avoid any kind of inconvenience to the
customers.
39
40
LIMITATIONS
This research was limited to FMCG distributor and to a particular area i.e. east
singbhum
The telephonic survey was limited to the customer of Tata Ace and to a particular
area i.e. Dhanbad, Ranchi, Hazaribagh
There was time constraint as this research was to be completed with in a specified
period of time.
During personal interview some of the customer was not available so the visit was
done 2-3 times and it takes more time to complete this project.
In case of telephonic interview most of the customer cannot contacted because of
changed phone number, network problem or some of the customer mobile is switch
off etc.
41
CONCLUSION
The most common feedback from the customer was that the mileage of the vehicle
should be more.
Torque as well as pickup should be improved.
There was some dissatisfaction with the service centre among the customers.
The general view of the customer regarding the service centre was that it is not up to
the mark and not committed as well.
Most of the spare parts are not available in the service centre.
On the other hand there are customers who are very much satisfied with the
Vehicles performance
42
REFERENCES
Help from various books and websites were taken to complete this project successfully.
WEBSITES:
www.google.com
www.tatamotors.com
BOOKS:
Marketing management by Kotler and Keller 13th edition.
Chapter conducting marketing research and forecast
ANNEXURE
43
No
b) Mahindra
No
No
No
44
SURVEY
QUESTIONNAIRE
1 Are you satisfied with the vehicle performance so far?
a) Highly satisfied b) satisfied c) Dissatisfied d) Highly dissatisfied
2 If no then, give reasons?
b) No
5 Confirmation of address
45
46