Tata Motors

MCEE-MAHARISHI INSTITUTE OF MANAGEMENT
B.U.BHOPAL
A PROJECT REPORT
ON
CUSTOMER SATISFACTION ON TATA MOTORS
SUBMITTED FOR THE PARTIAL FULFILMENT OF MBA

PROGRAM OF BARKATULLAH UNIVERSITY,BHOPAL
SESSION : 2015-2016
GUIDED BY:
Mr. Abhinav Shrivastava SUBMITTED BY:
Syed Mazhar Zaidi
MBA 3rd Sem
CERTIFICATE
This is to certify that Mr Syed Mazhar Zaidi student of M.B.A III Semester of Maharishi
Institute of Management Bhopal is doing a project under my guidance on the title
Customer Satisfaction on Tata Motors
I hereby declare that all the information mentioned in the project is authenticated and
has not been copied from anywhere.
(Mr.Abhinav Shrivastava )
Project Guide (Prof. MIM)
Department of Management
DECLARATION
I Syed Mazhar Zaidi student of M.B.A III Semester hereby declare that this piece of project
report entitled CUSTOMER SATISFACTION ON TATA MOTORS for the partial fulfilment of
the requirements for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION is a record of original work done by me under the supervision and
guidance of Professor Abhinav Shrivastava Maharishi Institute of Management Bhopal . This
project work is my own and has neither been submitted nor published elsewhere.
Date- Student Sign:-

Place-Bhopal Name: Syed Mazhar Zaidi
Class-MBA 3rd SEM
ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere & heartfelt obligation towards
all the personages who have helped me in this endeavour. Without their active guidance, help,
cooperation & encouragement, I would not have made headway in the project.
I pay my extreme gratitude to my Head of the Department _______________________ for his
continuous guidance and support.
I am extremely thankful and pay my gratitude to my faculty Mrs. Jyotika James for her valuable
guidance and support on completion of this project in its presently.
I extend my gratitude to Maharishi Institute of Management, Bhopal for giving me this
opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Syed Mazhar Zaidi

MBA 3RD SEM
Contents
PAGE NO.
Chapter 1. INTRODUCTION 7
1.1. Objectives
1.2. Industry Profile
1.3. Company Profile
Chapter 2: Distribution of Tata Motors 34
Chapter 3. Research Methodology 44

3.1 Types of Research
3.2 Data Collection Procedures Used in my Research
3.3 Data Collection Techniques
Chapter 4. Findings and Analysis 47
Chapter 5. Conclusion 77
5.1 Conclusion and Recommendations
5.2 Learning from the Internship
References 80
Annexure (Sample Questionnaire) 82

EXECUTIVE SUMMARY
My Study will be limited to speedometers with reference to Sales and Distribution for Tata
Motors in India. To analyze the sales and distribution of TATA motors, I had taken a dealership
as a case study. By working in a dealership I came to know about the distribution channel of the
company.
The main purpose of pursuing my Summer Internship at Tata Motors was to get a better
understanding of the Indian Automobile Industry. Also, I wanted to specifically get an overview
of Tata Motors business group- the kind of customers it caters to, the attributes which influence
the sales of cars; and the strategies which may improve the sales of the same.
The research started by conducting a small pilot study on a few respondents- this process
easily detects the errors in the questionnaire which may otherwise be overlooked. I applied the
tool of Questionnaires to collect data. I conducted the survey on the existing customers of the
company towards the sales and service of the vehicles. Consumers, from eclectic age groups,
were also surveyed to get a broader picture of their preferences.
INTRODUCTION
1.1 Objectives
To study the distribution channel of Tata motors.
To conduct sales of cars of Tata Motors.
To analyze the customer's satisfaction by conducting a
research.
1.2 INDUSTRY PROFILE
AUTOMOBILE INDUSTRY IN INDIA

In the fast moving world with the biggest countries with huge economies India has managed to
be the eleventh in the world for annual production of 2 million units approximately. This sector
in India is growing at a very fast rate and it has crossed China in terms of selling the Units. In the
matter of population India is the second largest country in the world with a population of 1.1
billion. In this respect it is just next to China. But it has a very small land mass as compared to
China. India has become an attraction for car manufacturers around the Globe as a graph of its
ownership of car i.e. 7 per 1000 people.
Automobile industry in India comprises of 13 million direct and indirect employees. It

contributes 3.1% of Indias GDP (nominal) and the valuation of the industry is about US$ 34
billion. India's motorcycle market with an annual sale of 5 million units is the second largest
around the globe. India has Fourth largest commercial vehicle market, Eleventh largest passenger
car market, Fifth largest bus & truck market (by volume) around the globe.
With this growing pace India by 2016 is expected to be the seventh largest automobile market
and by 2030 worlds 3rd largest behind US & China.
Late 1890s is the time when Automobile was introduced in India but it came into existence only
after the independence in 1947. Until 1980s Hindustan Motors and some small manufacturers
Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly till
the time when Maruti Udyog Suzuki came into existance after the death of the great Indian
politician Sanjay Gandhi who championed the need for a "people's car". It quickly gained over
50% of the market share. The Maruti 800 became popular because of its low price, high fuel
efficiency, reliability and modern features relative to its competition at the time.
From the decades in the Indian automotive industry there were only few vehicle models but then
also there is a good lead time to get a car after the booking. So with changing economy,
competition, and urge to grow big we are here with more than 100 Models and every moth with a
new model to offer. Keeping in mind the comfort of the people and their choice the models are
prepared. Performance of vehicle is increasing day by day, its fuel efficiency and reliability has
no match with others around the globe.
Inspite of having manufacturing of major foreign automakers based in India our Indian Domestic
Automobile Companies are leading in the Market. Tata Motors is the largest commercial vehicle
company, Maruti Suzuki is the largest passenger vehicle company & Hero Honda is the largest
motorcycle company in India. Mahindra & Mahindra, Ashok Leyland and Bajaj Auto are some
more leading automobile manufacturers.
Automobile Domestic Sales Trends (Number of Vehicles)

Category 2006-07 2008-09 % change
Passenger Car 882208 1076408 22.01
Total Passenger Vehicles 1143076 1379698 20.7
Total Commercial Vehicles 351041 467882 33.28
Three Wheelers 359920 403909 12.22
Total Two Wheelers 7052391 7857548 11.41
Grand Total 8906428 10109037 13.5
Source: Society of Indian Automobiles Manufacturers.
Maruti Udyog Ltd, the biggest car maker of the country, selling 2, 93,536 vehicles as
against 2,43,211 in the corresponding year last year. having a growth rate of about 20.7
per cent during April-August,2009
Mahindra & Mahindra Ltd's (M&M) cumulative sales with exports were 1,06,094 units
compared to 78,144 units in the corresponding period last fiscal during the April-
September having a growth rate of about 35.8 per cent
Honda Siel Cars India Ltd. (HSCI), leading manufacturer of premium cars in India,
selling 41,638 units against 35,853 units. having a growth of 16.1 % in cumulative sales
for the period January to August, 2009.
DaimlerChrysler sold 1,681 units in India from January to August, growth of over 22 per
cent from a year ago.
Car-maker General Motors India (GM), totally owned subsidiary of General Motors
Corporation, reported a 114 % increase in domestic sales during August at 5,817 units
against 2,720 units in the same month last year.
Hero Honda crossed the 2 million unit sales mark during the Jan-Aug period.
Motorbike exports from India have grown to 3 to 21 to 321 units in the April-August
period this fiscal from 2 to 37 to 103 units in the same period last year.
CARS BY PRICE RANGE
Maruti 800, Alto, Omni

Reva
Under Rs. 3 Lakhs
Nano
Ambassador
Fiat Palio
Hyundai Santro, Getz
Rs. 3-5 Lakhs Chevrolet Opel Corsa
Maruti Zen, Wagon R, Versa, Esteem, Gypsy
Ford Icon & Fiesta
Tata Indica, Indigo XL, Indigo Marina
Rs. 5-10 Lakhs
Chevrolet Swing, Optra Magnum, Tavera
Hyundai Accent, Elantra
Mahindra Scorpio
Maruti Baleno
Toyota Innova
Tata Safari
Mitsubishi Lancer, Mitsubishi Cedia
Honda City ZX
Mahindra Bolero
Hyundai Sonata Embera
Toyota Corolla
Ford Mondeo & Endeavour
Rs. 10-15 Lakhs Chevrolet Forester
Skoda Octavia & Combi
Honda Civic
Honda CR-V
Maruti Suzuki Grand Vitara
Terracan & Tucson, Captiva
Mitsubishi Pajero
Rs. 15-30 Lakh
Audi A4
Opel Vectra
Honda Accord
Mercedes C Class
Toyota Camry
Major Companies
List of automobile manufacturers in India
Indian companies
Force Motors
Force Motors was formerly known as Bajaj Tempo Ltd. Founded in 1958, it is located in Akurdi,
a Pimpri-Chinchwad neighbourhood of Pune, India. They manufacture three wheelers, multi
utility and cross country vehicles, light commercial vehicles, tractors and now heavy commercial
vehicles.
Gama, Cruiser
Trax, Toofan, Challenger
Ashok Leyland
Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In

1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The
Company's destiny and name changed soon with equity participation by British Leyland and
Ashok Leyland commenced manufacture of commercial vehicles in 1955. For over five decades,
Ashok Leyland has been the technology leader in India's commercial vehicle industry, moulding
the country's commercial vehicle profile by introducing technologies and product ideas that have
gone on to become industry norms.
Ashok Leyland has six manufacturing plants - the mother plant at Ennore near Chennai, two
plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at
Alwar and Bhandara.
From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles,
from numerous special application vehicles to diesel engines for industrial, marine and genset
applications, Ashok Leyland offers a wide range of products.
Hindustan Motors
Hindustan Ambassador
Hindustan Motors is one of the oldest Indian car manufacturers. It is best known for the
Ambassador which has been virtually unchanged for about 30 years. It is still very popular as a
taxi and is widely used by Indian politicians. Many people have come to associate India with
Ambassador and is a prominent part of the Indian landscape.
Trekker (Discontinued)
Landmaster (Discontinued)
Contessa (Discontinued) - 5th Generation Vauxhall Victor
Ambassador - a version of the 1950s Morris Oxford
Mahindra & Mahindra Limited
Mahindra Classic
The automotive section of Mahindra started off when a first batch of seventy five Utility Vehicles
(UVs) was imported in CKD condition from Willys in 1947. It has come a long way, not just
manufacturing Jeeps but also agricultural equipment and light trucks.
Armada (Discontinued)
Voyager Discontinued)
Bolero
Commander
CL
MaXX
Scorpio
Mahindra and Mahindra Classic This was an open jeep with good off roading
capabilities, a 4*4 and 4*2 option, huge headlamps and roof mounted lights. ==
Maruti Suzuki
Maruti 800
Maruti Gypsy
Maruti Udyog was formed as a partnership between the Government of India and Suzuki of
Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car manufacturer
in India and especially dominant in the small car sector. Then it brought out The Maruti 1000,
made by Maruti Udyog was the first ever contemporary sedan-type car launched in India. The
car (which Suzuki sold in other countries as the Cultus/Swift/Geo Metro with a 1.3 L or 1.6 L
engine) was introduced in October, 1990. Sold at Rs. 3.81 lakh, it was back then the costliest car
released in the Indian market. Then the company replaced it with Esteem and from that days on a
line of Suzuki cars rolled out in the Indian market.
800
Omni
1000 (Discontinued)
Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)
Alto
Esteem(Discontinued)
Baleno - (Discontinued)
Baleno Altutra - (Discontinued)
Gypsy
Swift
SX4
WagonR
Versa
Zen Estilo - First Generation Suzuki MR Wagon
Grand Vitara - First Generation Suzuki Grand Vitara
Eigo
Multi-national companies
BMW
BMW is manufacturer of prestigious sport sedans that are known for their nimble handling.
BMW enjoys good brand recognition in India, thanks to Indian movies and the rich who have
been importing these cars for decades. It has set up a plant in Chennai, Tamil Nadu, to
manufacture cars locally exclusively for the local market with no plans for export. It set up the
plant to circumvent high import duties.
3 Series
5 Series
7 Series
Fiat
Fiat India has struggled in India since its inception. The Fiat Uno was one of the first products to
be introduced. The Fiat Palio was later introduced and was initially a big hit with its style and
ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency.
Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the
Fiat Siena to Fiat Petra without much success. It roped in Sachin Tendulkar as one of its brand
ambassadors. Even Michael Schumacher appeared in an ad for the Palio. It has entered now into
an alliance with Tata Motors to jointly manufacture cars at its plant in Ranjangaon, near Pune.
The facility will enable the two companies to make about 200,000 cars per annum, and also
house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance
will also see Tata Motors use Fiat's diesel technology - the 1.3 litre multijet diesel engine - for its
own vehicles. The two companies also have a distribution and service partnership.
Uno(Discontinued)
Palio
Palio Stile
Siena(Discontinued)
Siena Weekend (Discontinued)
Petra(Discontinued)
Adventure
Punto
Linea
Ford Motors
Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a major plant in
Tamil Nadu. The first model was the Escort.
Escort (Discontinued) - It was offered with a 1.3 Liter petrol termed Alpha and 1.5 Liter
Diesel engine termed Orion, and at a time when the car wars in India had just begun. The
diesel version was fancied by many due to the fact that diesel was available at half the
price of petrol(gasoline/gas) in India at that time. Among the famous owners of the Ford
Escort was Azim Premji who drove a black one for almost eight years until he traded it
for a Toyota Corolla. The Ford Escort 1.8 was ranked the highest in the J.D. Power and
Associates 1997 Indian Customer Satisfaction Study. It was also voted the Best Quality
Car in the J.D. Power India Initial Quality Study.
Ikon - Was launched to phase out the Escort, known for the Rocam engine, available with
a choice of petrol and diesel version, the car did well. Ford is known for launching new
versions with some minor cosmetic changes every now and then.
Mondeo (Discontinued) - Was Ford's offering to the D segment in India in 2001, was
brought in as a CBU from Belgium with Ghia being the only trim version available. It
was available with both 2.0L Duratorq diesel and 142 bhp 2.0L petrol Duratec engines. It
was the first car to be offered with Xenon HID headlamps in India. It is alleged that the
Mondeo performed better than the 2.3 L Accord available in India at that time. But buyers
stayed away as it was more expensive than the Accord. The diesel version was phased out
in 2003.
Endeavour - Sold as the Ford Everest in other parts of Asia and based on the Ranger
pickup, it was offered in both 4X4 and 4X2 options but with only a 2.5 L, 4 Cylinder In-
line, Turbocharged & Inter cooled Diesel Engine and manual transmission.
Fusion - was launched as an Urban Activity Vehicle available with a 1.6 L , 4 cyl 101 bhp
(75 kW/102 PS) engine with 5 speed manual transmission. In 2007 a diesel version was
launched which has the same 1.4 L 68 bhp (51 kW/69 PS) engine as the Fiesta.
Fiesta - Launched in November 2005 and was Ford's fifth model in India, and is available
in 1.6 L petrol and 1.4 L diesel engines. Bill Ford made a personal visit to launch the car
in India.
General Motors
Chevrolet has been one of the most recognized brands in India for several decades. They were
made popular as the vehicle of choice of the heroes in Bollywood movies. The model lineup
consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered
India with the Opel brand, but the Opel brand was dropped in March 2006 because sales were at
an all time low due to high prices and General Motors wanted to focus more on their Chevrolet
brand. Since the Chevrolet brand was introduced in India, there have been no new Opel products.
GM's Indian operations were originally a JV between Hindustan Motors and GM, with most of
GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now
wholly owned by GM.
Cars from Chevrolet are:
Tavera - Rebadged Isuzu Panther

Forester - (Discontinued) Rebadged First Generation Subaru Forester
Aveo - Second Generation Daewoo Kalos sedan
Aveo UV-A - First Generation Daewoo Kalos hatchback
Optra - Rebadged Daewoo Lacetti
SRV - Rebadged Daewoo Lacetti
Spark - Formerly Daewoo Matiz in India
Cruze
Captiva
Honda
Honda Siel Cars entered India in 1995. It sells 4 cars in India - the City, Civic, Accord, and CR-
V. The manufacturing plant of Honda Siel is located in Greater Noida. The model of Accord sold
in India is the 2003 model. The most inexpensive car from Honda - The City. The most
Expensive - The Honda Accord V6.
Accord - It was introduced in India in July 2001. It is sold in three versions - Accord VTi-
L M/T, Accord VTi-L A/T and Accord V6 A/T. Both the engines, the standard i-4 and V-6
have be de-tuned which produce less power compared to the American models, the I-4
produces 142 bhp (106 kW/144 PS) while the V6 produces 221 bhp (165 kW/224 PS),
de-tuned for better fuel efficiency.
City - Was launched in India in December 1997 ,initially offered in two options. A 1.3
liter engine producing 90 bhp (67 kW/91 PS) and a bigger 1.5 liter producing 100 bhp
(75 kW/101 PS). Two years later a VTEC option was also offered. All were four cylinder
engines. In October 2003 the City underwent a major revamp and is popularly called as
New Honda City (NHC). Surprisingly Honda gave the new City less powerful engines
and decided to improve the fuel efficiency. The new City features a 1.5 liter engine
producing 77 bhp (57 kW/78 PS). It offered more interior space and with bright and
refreshing interiors. About two years later, a face lifted version - CITY ZX - was
introduced. At the same time, a VTEC engine model too was introduced.
Civic - Was launched in July 2006 in India 6 months after the international debut. The car
is the first in this segment in India to offer unprecedented safety features like ABS, EBD
as standard. It is also the first in its class to feature reverse swing windshield wipers. The
only problem with the car with respect to India is its low ground clearance.
CR-V - It was introduced in India along with the Accord. It was and is still offered with a
2.4 liter i-VTEC engine producing 152 bhp (113 kW/154 PS).
Hyundai
When Hyundai entered India, the brand was virtually unknown in the Indian market. They signed
up Bollywood actor Shah Rukh Khan and their excellent advertising campaign made Hyundai a
household name and helped it reach the second place behind market leader Maruti Suzuki.
Santro - second generation Hyundai Atos

Accent - second generation Hyundai Accent sedan
Sonata - sold as the Sonata Embera
Verna - third generation Hyundai Accent sedan
Getz - sold as the Getz Prime
Elantra - 3rd generation Hyundai Elantra sedan
Terracan (discontinued)
Tucson
i10 - brand new small car, global launch in India in 2007.
I20
Renault-Nissan
Logan In partnership with Mahindra and Mahindra
Mercedes-Benz
M-Class
S-Class
E-Class
C-Class
Mercedes-Benz has had to cater to the ever growning luxury segment in India, in a much better
fashion now, especially after the arrival of the other luxury German manufacturers. Now,
Mercedes-Benz cars are launched in India soon after the worldwide launch and homologation as
opposed to earlier, when Mercedes-Benz had monopolized the niche Indian market.
Mitsubishi Motors
Lancer - Sixth Generation Mitsubishi Lancer
Cedia - Seventh Generation Mitsubishi Lancer
Pajero - Second Generation Mitsubishi Pajero
Montero - Third Generation Mitsubishi Pajero
koda
koda is an important car manufacturer of India. It recently launched the Laura, the Octavia still
continues to exist. Skoda also offers the Superb in India but it's not too popular.
Octavia
Superb
Laura
Fabia
Toyota
Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to make way
for the Toyota Innova, which was launched in India in 2005. The most expensive car from
Toyota is a very powerful SUV - The Land Cruiser Prado. Toyota Kirloskar Motors LTD is a
joint venture between Toyota Motor Corporation and the Kirloskar Group.
Qualis (Discontinued) - 3rd Generation Toyota Kijang

Camry - 6th Generation Toyota Camry
Corolla - 9th Generation Toyota Corolla
Innova
Land Cruiser Prado - 3rd Generation Toyota Prado
SWOT
STRENGTHS
Largest production base about cars per day
Different model exported to different country.
Well established networking and distribution system in 30 countries of the world.
Market share of 30% in the Indian car industry.
Good technical support and service abroad.
Produces the most fuel efficient vehicles.
Highly efficient and technical staff abroad.
Good customer support.
Good infrastructure in Europe.
WEAKNESS
Low emphasis on research and development
Technology in automobile is out dated.
OPPORTUNITIES
Largest market in Europe and also good market in India.
THREATS
Competition from the automobile industry of the world.
1.3 COMPANY PROFILE
a. Review of literature on the company
Tata Motors
Tata Motors Limited (formerly known as TELCO (TATA Engineering and Locomotive
Company), (NYSE: TTM) - is India's largest passenger automobile and commercial vehicle
manufacturing company. It is a part of the Tata Group, and has its headquarters in Mumbai,
Maharashtra.
One of the world's largest manufacturers of commercial vehicles and known for its hatchback
passenger vehicle Tata Indica, Tata Motors has its manufacturing base in Jamshedpur, Lucknow,
Pune and Singur. The OICA ranked it as the world's 21st largest vehicle manufacturer, based on
figures for 2006.[1]
Tata Motors was established in 1945, when the company began making trains. Tata Motors was
first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during 2001-2006 which
was among the top 10 corporate profits in India. In 2004 it also bought Daewoo's truck
manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March
2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the
company. On 10 January 2008, Tata Motors launched their much awaited Tata Nano, noted for its
Rs 100,000 price-tag, at Auto Expo 2008 in Pragati Maidan, Delhi.
Tata Motors commences distribution of Fiat Cars across India

Tata Motors and Fiat India Private Limited announced the commencement of the new Tata-Fiat
dealer network to sell both Tata and Fiat branded cars, along with service and sales of spare
parts, in 11 cities across India.
The Tata-Fiat dealer network comprises 25 existing Tata Motors Passenger Vehicles dealers and
3 existing Fiat India dealers. The 28 Tata-Fiat dealers will sell the Fiat Palio (1.2 EL PS, 1.2
ELX, 1.6 Sports) and the Fiat Adventure (1.6 Sports), and all Tata Motors Passenger Vehicles -
the Tata Indica, the Tata Indigo, the Tata Indigo Marina, the Tata Sumo and the Tata Safari.
The beginning of operations of the Tata-Fiat dealer network follows the agreement, announced
by the Fiat Group and Tata Motors on January 13, 2006, to cooperate on dealer network
sharing. The execution of the distribution arrangement is the first initiative post the
signature of the Memorandum of Understanding signed between the Fiat Group and Tata Motors
in September 2005. Discussions are on to explore other areas of co-operation, on which specific
announcements can be expected once their feasibility is established.
Commenting on the commencement of the Tata-Fiat dealer network, Mr. Rajiv Dube, Sr. Vice-
President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata Motors, said,
Tata Motors is delighted to be partnering Fiat India in bringing a larger portfolio of products
under a single roof at our joint dealerships. Between the Tata and Fiat brands, the company is in
a position to offer one of the widest product offerings in the Indian market with the promise of
several exciting options to come.
Mr. Giovanni de Filippis, Managing Director of Fiat India Private Limited, said, The coming
together of Tata and Fiat through the dealer network sharing signifies better service, after sales
support and more convenience to Fiat customers. Our customers have always been delighted
with the superior build quality of our cars. The after sales support that comes with the Tata trust
will complement this, and Fiat is confident of serving its customers better.
Existing Fiat dealers will continue to retail the full range of Fiat offerings, including the Fiat
Petra.
About Fiat
One of the pioneer companies in the automobile industry, Fiat has produced more than 85 million
passenger cars and light commercial vehicles, including no less than 400 models, since 1899,
when the company was founded in Turin, Italy. Some of them have represented milestones
in the automotive industry. The Fiat Groups Automobiles Sector operates world-wide with the
following brands: Fiat, celebrated for value, economy, and innovation and whose mass
produced cars are distributed over almost the entire price class spectrum; Lancia (acquired in
1969) means prestige cars noted for their elegant
styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and luxury
vehicles of style and distinction; Maserati (acquired in 1992) represents a landmark in the
history of the automobile; Ferrari (acquired in 1969), well renowned for unsurpassed design,
performance, and luxury, is a legendary automobile that imparts special cachet to its owner.
Fiat India Private Limited, with its renewed brand strategy for the Indian market, is focused
on the premium end of the B & C category in the growing automobile sector. Fiat Adventure
Sport is the latest offering targeted at the new generation of customers who enthusiastically
seek out the latest trends in style, safety, engine and performance. Fiats superiority in design
and technology has been re-emphasized from the fact that its 1.3-multi jet has been chosen as the
Engine of the Year 2005 in the 1 to 1.4 litres by the Jury of the International Engine of the Year
award.
b. Historical analysis
Background
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is currently
headed by Ratan Tata.
The company has the workforce of 24000 employees working in its four plants and other
regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by international standards. In
commercial vehicles, Tata Motors commands an imposing 65% market share in the domestic
heavy commercial market. The company is trying to modernise its range of commercial vehicles.
Tata Motors hived off its vehicle finance business into a separate subsidiary, TML Financial
Services (TMLFS), in September 2006.
Time line and milestones
Tata Motors launches its first truck in collaboration with Mercedes-Benz

1960-1986
Tata Motors is the 2nd largest commercial vehicle maker in India. World over it is the world's
fifth largest medium and heavy commercial vehicle manufacturer. It started its journey in 1960
with the manufacturing of first commercial vehicle (a copy of a Daimler Benz model) in Pune. It
took five years for the company to begin the commercial production of heavy commercial
Vehicles. Considering the road infrastructure of the country which does not support heavy
vehicles the company adopted a route for light commercial vehicles (LCV). It came out with its
first LCV, Tata 407, in 1986.
1987-1996
Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the company
adopted the route to joint ventures. In 1993 it signed with Cummins Engine Co., Inc., for the
manufacture of high horsepower and emission friendly diesel engines. It was an effort made to
reduce the pollution in the existing Tata engines and to produce more environmentally friendly
engines. Furthering the trail of JVs it signed a joint venture agreement with Tata Holset Ltd., UK,
for manufacturing turbochargers to be used on Cummins engines.
1997-2006
In 2000, it launched compressed natural gas (CNG) buses and also filled the product line gap
through the introduction of the 1109 vehicle which is an intermediate commercial vehicle and is
useful for medium tonnage loads. Post 2000, the company introduced a variety of new models. It
introduced the Ex- series vehicles with high tonnage capacity and high pick up and also came out
with the entirely new LCV (207 DI) with direct ignition technology to cater to the customers'
requiring one and same vehicle for commercial as well as personal use.
Tata Novus
In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons
behind the acquisition were:
Companys global plans to reduce domestic exposure The domestic commercial vehicle
market is highly cyclical in nature and prone to fluctuations in the domestic economy.
Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in
the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle
sales of the company are at the mercy of the structural economic factors, it is increasingly
looking at the international markets. The company plans to diversify into various markets
across the world in both MHCV as well as LCV segments.
To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata
Novus from Daewoos (South Korea) (TDCV) platform. Tata plans to leverage on the strong
presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate
time. This was mainly to cater to the international market and also to cater to the domestic
market where a major improvement in the Road infrastructure was done through the National
Highway Development Project On its journey to make an international foot print, it continued its
expansion through the introduction of new products into the market range of buses (Starbus &
Globus).
Joint ventures
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%
stake in Hispano Carrocera SA, Spanish bus manufacturing company and introduced its high-end
inter-city buses in the country.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global
leader in bus body building. This joint venture is to manufacture and assemble fully-built buses
and coaches targeted at developing mass rapid transportation systems. The joint venture will
absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will
provide know-how in processes and systems for bodybuilding and bus body design.
A venture with British carmaker MG Rover saw the launch of the CityRover in 2003. This car
was based on the Tata Indica and built alongside it in India, but sales were not strong and
production finished in April 2005 when MG Rover went bankrupt. MG Rover was purchased by
Nanjing Automobile of China three months later, but when car production resumed in 2007, the
City Rover was not part of the production plans.
Tata Ace
The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously developed sub-
one ton mini-truck, was launched in May 2005. It was an instant hit. Analysts opined that Ace
had changed the dynamics of the light commercial vehicle (LCV) market in India by creating a
new market segment termed the SCV segment. Ace rapidly emerged as the first choice for
transporters and single truck owners for city and rural transport. By October 2005, since the
launch of Ace, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the
[3]
rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.
By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Autoline
In 2005, Tata Motors became the only major engine manufacturer in the world (aside from a
Briggs & Stratton emissions test) to express any formal interest in the turbulence-boosting
cylinder head grooves invented by Somender Singh (Mysore).
2007
Tata Indigo
Tata Motors, through its joint venture with Fiat, gained access to Fiats diesel engine technology
and is likely to gain access to the latters strong overseas distribution network for its passenger
cars. Tata Motors is looking to extend this relationship to other segments like pick-ups and
MHCVs. The company also plans to expand its global footprint with the launch of Global
Truck and Global Pick-up in domestic and international markets by 2007-08. Tata Motors
plans to launch the new pick-up in India, Southeast Asia, Europe, South Africa, Turkey and
Saudi Arabia. The launch of the global truck will mark the entry of the company into developed
markets like Europe and the United States. The project was initially a collaboration between Tata
Motors and its subsidiary Tata Daewoo Commercial Vehicles, but later Tata Motors decided to
work with Iveco as Daewoos design was not in sync with the needs of sophisticated European
customers. The company has formed a joint venture with Thailands Thonburi,( Exhibit-1) an
independent auto assembler, in which Tata Motors will hold a 70% stake. The joint venture will
set up a plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the
second largest pick-up market in the world, and in other regional markets. The joint venture
product is likely to be a part of Tata Motors Global pick-up plans.
2008 onwards
On January 3rd, 2008, The Hindu Business Line reported that Ford Motor Company (US) named
Tata Motors the "preferred bidder for Ford's British marquees Jaguar and Land Rover ... but a
final decision for the sale was yet to be taken".
Auto policy of Government of India (GOI) envisions to establish a globally competitive

automotive industry in India and to double its contribution to the economy by 2010. GOI policy
has rightly recognized the need for modernizing of vehicles to arrest degradation of air quality.
The terminal life policy for commercial vehicles and move toward international taxing policies
linked to age of vehicles, are steps in the right direction which will lead to increased sales for
Tata motors Commercial vehicle division.
Effect of Government Policy on Tata Motors CV Division Commercial Vehicles segment sector
has been at the forefront of the strong showing by the automotive industry over the past few
years. Following factors have led to growth in sales:
The cut in excise duty that enabled manufacturers like Tata Motors to reduce prices
The attractive financing offers and freebies enabled by low interest rate policies by
Government
the need to transport higher volumes of agricultural and industrial goods
Low interest rates
Tata Xover
New auto policy considered by Government of India last announced an automobile policy in
December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest
at least $50 million in equity if they wished to set up manufacturing projects in India. It also
forced them to take on export obligations to fund their auto part imports and required them to
submit to a schedule for increasing the share of locally made parts in their cars. Mere car
assembling operations were not welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a part of the
minimum foreign investment made by it in an auto-making subsidiary in India. The move is
aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The
policy sets an export target of $1 billion by 2005 and $2.7 billion by 2010. The policies adopted
by Government will increase competition in domestic market, motivate many foreign
commercial vehicle manufactures to set up shops in India, whom will make India as a production
hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in
near future, which might affect its growth negatively
Global competition
Tata Motors have some distinct advantages in comparison to other MNC competitors. There is
definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in
developed economies. Tata motors have extensive backward and forward linkages and it is
strongly interwoven with machine tools and metals sectors. India is an excellent source for IT
based engineering solution for products & process Integration. There are strong supporting
industries i.e. auto component industry has world class capabilities. There is huge demand in
domestic markets due to infrastructure developments and Tata Motors is able to leverage its
knowledge of Indian market. There are favorable Government polices and regulations to boost
the auto industry i.e. Incentive for R&D.

c. SWOT
SWOT Analysis - Tata Motors Limited
The company began in 1945 and has produced more than 4 million vehicles. Tata Motors
Limited is the largest car producer in India. It manufactures commercial and passenger vehicles,
and employs in excess of 23,000 people.
Strengths
The internationalisation strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the new
market. The benefit is that Tata has been able to exchange expertise. For example after
the Daewoo acquisition the Indian company leaned work discipline and how to get the
final product 'right first time.'
The company has a strategy in place for the next stage of its expansion. Not only is it
focusing upon new products and acquisitions, but it also has a programme of intensive
management development in place in order to establish its leaders for tomorrow.
The company has had a successful alliance with Italian mass producer Fiat since 2006.
This has enhanced the product portfolio for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007,
and the companies have an agreement to build a pick-up targeted at Central and South
America.
Weaknesses
The company's passenger car products are based upon 3rd and 4th generation platforms,
which put Tata Motors Limited at a disadvantage with competing car manufacturers.
Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not
got a foothold in the luxury car segment in its domestic, Indian market. Is the brand
associated with commercial vehicles and low-cost passenger cars to the extent that it has
isolated itself from lucrative segments in a more aspiring India?
One weakness which is often not recognised is that in English the word 'tat' means
rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe
not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and
strengths).
Opportunities
In the summer of 2008 Tata Motor's announced that it had successfully purchased the
Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the
World's luxury car brand have been added to its portfolio of brands, and will undoubtedly
off the company the chance to market vehicles in the luxury segments.
Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for
around USD $16 million.
Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst
the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer
in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will
cost up to 85 times more than a standard Nano!
The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally friendly
transport alternatives, is now the right time to move into this segment? The answer to this
question (and the one above) is that new and emerging industrial nations such as India,
South Korea and China will have a thirst for low-cost passenger and commercial
vehicles. These are the opportunities. However the company has put in place a very
proactive Corporate Social Responsibility (CSR) committee to address potential
strategies that will make is operations more sustainable.
The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly
engines. The bus has optional organic clutch with booster assist and better air intakes that
will reduce fuel consumption by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car business for 40, 50 or
more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean
production.
Sustainability and environmentalism could mean extra costs for this low-cost producer.
This could impact its underpinning competitive advantage. Obviously, as Tata globalises
and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle segments, it has
left itself open to competition from overseas companies for the emerging Indian luxury
segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-
based plant which will build 5000 new Mercedes-Benz per annum. Other players
developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In
fact the entire Indian market has become a target for other global competitors including
Maruti Udyog, General Motors, Ford and others.
Rising prices in the global economy could pose a threat to Tata Motors Limited on a
couple of fronts. The price of steel and aluminium is increasing putting pressure on the
costs of production. Many of Tata's products run on Diesel fuel which is becoming
expensive globally and within its traditional home market.
2 Distribution Strategy/ Channels of the Tata Motors and Fiat in India
Distribution of the product
Distribution Method
Distribution always takes place through a cycle but it is different with the products. There are
several steps which complete the entire cycle. It usually starts with manufacturer then to
distributor and then finally reaches in the hand of consumer. This is the main cycle which is used
globally. Retail may takes place before it reaches to the consumer.
MANUFACTURER DISTRIBUTOR CONSUMER
1st distribution channel
1. In this type of channel the company uses its sales representatives to deal with the dealers
directly. The dealers place the order through the sales representatives who visit them periodically,
and the products are delivered directly from the company.
Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive
showrooms.
2nd distribution channel

2. In this channel of distribution the company appoints distributors on the basis of District/
Population /No of Dealers to be handled by one distributor. The area of operation and its
potential is also taken into consideration.
Some of the companies make the distributor totally responsible from appointing the dealers to
providing after sales service.
3rd distribution channel
3. In this channel of distribution the company appoints Distributors as well as Direct Dealers.
The company appoints distributors to deal with small dealers who order small quantities. With
the dealers who have good potential and sales the company deals directly.
4th distribution channel

4. In this channel the company appoints a C&F agent who acts on behalf of the company. The
C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to
both the Distributors and the Direct Dealers at the same rates.
DISTRIBUTION NETWORK TATA MOTORS
TATA MOTORS
TIER I
VOLUME
RESELLErR
TIER I
Distributors
System Integrators
Own sales force
Value Resellers Resellers
CUSTOMER
CHANNEL STRUCTURE
Scenario 1 Scenario 2
Companys warehouse Customer
(Placing
Order (Direct billing)
Directly)
Customer
To save the consumer from paying extra amount in the form of taxes and duties a consumer can
directly place an order with the Tata Motors warehouse is a pictorial representation of the same,
also there maybe a case where all the 4 or any one of the national Dealers have warehouses in
Singapore and consumer places order with these distributor then in that case these distributors
will place the order to Tata Motors which will have direct billing with the distributors and
distributors will have direct billing with the consumer.
How do the finished products of your company move from your end to
consumers end?
CONSUMER RESELLER
In this distribution network a customer with the small requirement reaches the reseller who buys
the product from the big distributors like Ingram, Redington,Tech pacific and iris.
How the finished products moves from Tata Motors end to consumers end:
CONSUMER RESELLER
In this distribution network a customer with the small requirement reaches the reseller who buys
the product from the big distributors like Ingram, Redington, Tech pacific and iris.
SALES
FORCE Tata
Motors
VALUE
BUSINESS RESELLER
This model is drawn to show that for named accounts or big business opportunities it is the
companies own sales force and system integrators (value resellers), which hunts down the
prospective business.
Distribution Channels
Channel Structure
1. Outside Pune Tata Motor
Organization
C&F
Distributer
Retailer
Consumer
2. There are 17 C&F and 50 distributors who directly deal with Tata Motor.
Functions performed by different channel member
1. The main functions of different channel members are to supply goods, to achieve targets and
to increase sales.
2. One of the main functions of C&F is to achieve the targets assigned to them. They are
responsible for all the activities of their areas.
3. The sale of other goods including the sale of its entire outlet is around 150 crores.
Selection of Channel members: -
Channels members are selected if the following facilities are available:-
1. Godown Facilities
2. Experience sale persons.
3. Van, truck, three-wheelers for transportation.
4. Registered office.
5. Proper computer facility of maintaining accounts.
6. Financially strong.
Financial terms and conditions
Tata Motor takes the full payment in advance from the distributor and C&F. Most probably it
takes Cheque if it is local payment and Demand Drafts if it is central payment. From some
distributors Tata Motor also take cash also but always try to avoid it. No credit facilities are
given to any distributor or C&F.
Tata Motor keep some blank cheques from some distributor and C&F even before taking the
order and use the cheque after delivering the goods.
Distributor and C&F mostly sale goods on credit basis which varies from one to another.
Tata Motor give 6-7% discount to C&F and distributor. No margin is given to them. But they
give margin of 10-12% to retailers.
Tata Motor is responsible if any goods spoiled or leak on the way in its transport.
Tata Motor also give 1-2% discount that takes responsibility of spoiled goods. Mainly these
options are given to those who are very far from Raipur and occurred heavy expense of transport
to return back the goods.
To promote sale Tata Motor give extra discount of 2-3 % where the sale is low.
Order processing
Sale persons of C&F and distributors go to the retailers of their areas and bring the order daily.
After that they give order in the Corporate Office of Tata Motor in Raipur to the general
manager. From corporate office general manager give order in the factory.
the order is ready to deliver and confirming from the corporate office, the goods are delivered in
the trucks.
Order within Raipur and the places near Raipur delivered within 24 hours.
Order outside Raipur delivered according to the distance. It takes from 24 hours to 72 hours.
Every distributor and C&F has a fixed day in a week to give order.
Warehousing
Tata Motor has its own warehouse, which is manage by its own staff. The order of Tata Motor is
delivered by truck. Tata Motors pay expenses for transportation from which the Tata Motor deals
directly.
Sales functioning: -
Factors taken into account while assigning targets and territories
Population of the area.
Income of the consumers in that area.
Sales during festival seasons.
Area cover.
Targets
Targets are decided by the owner of the Tata Motor for every distributor and C&F. Every year
targets are increased by 10-15%. All the Distributor and C&F have to achieve minimum 90 % of
its targets monthly and remaining has to adjust with the next month target. There is a meeting
held every month of C&F and distributors with the General Manager of Tata Motor where they
find reasons for not achieving the targets and how they overcome by this problem. In this
meeting extra benefits are also given for achieving the targets.
Responsibilities of the sales person
To supply goods.
To make new customers.
To bring the order from retailers of their area.
To promote Tata Motor Tata Car.
To report about the sale.
Performance Appraisal
The manager on the targets basis checks the performance of the sales person. The performance
appraisal is check on monthly basis. It is check as regard to achieve target. The sales persons
give daily report to the manager and on that basis the performance is checked and new target is
assigned.
Functions performed by different channel member
The main functions of different channel members are to supply goods and give
monthly report in the organization.
The channel members also supply goods in the outlets of the Tata Motor India.
They frequently visit outlet of Tata Motor India within Raipur and outside Raipur to
check the sales and whether the target is achieving or not.
They also promote Tata Motor India Tata Car.
The main role of showroom is to supply goods to the area that are assign to them.
They are responsible for achieving the target assign to them.
Selection of Channel members: -
Channels members are selected if the following facilities are available:-
Financially strong.
Transport facilities.
Registered office.
Godown Facilities.
Selection of channel member for the Franchise
Asked around 1.5 crore for franchise
Space required 12000 Sq feet
Preference given in Mall
Transport Facilities
Godown available.
Financial terms: -
In Raipur the Sales of Tata Motor India is done mainly on credit basis. The credit time is
not same for the entire distributor. The Finance department of the company decides the
credit period of the Distributor after consulting by sale manager.
Outside Raipur the payment is received at the time of delivered of goods. Maximum 15
days allowed paying the payment.
Extra benefit of 1-2% given to distributors who have achieved their annual target.
Order processing
From the main office the order is passed in the factory where production manager note
down the order and report back to the office when the order is ready.
Order within Raipur and the places delivered within 24 hours.
Order outside Raipur delivered according to the distance. It takes from 24 hours to 72
hours.
Warehousing:-
Tata Motor India has its own warehouse, which is manage by its own staff.
Sales Distributions
Factors taken into account while assigning targets and territories
Targets achieve last year.
Area covered by the Distributors.
Sale made during Festivals seasons.
Locations (for outlets).
Targets
The sales manager decides targets of the distributors. There is an increase in target of 5- 10%
annually both for distributor. The targets of both are checked quarterly by the sales manager and
if the target are not seen to be achieve then Tata Motor India sent their own sales person and try
to increase the sales.
Responsibilities of the sales person
To supply goods to distributors and in outlets.
To make new customers.
To bring the order from retailers of their area.
To promote Tata Motor India Tata Car.
To report about the sale and steps taken to increase the sale.
Performance Appraisal
The sales manager checks the performance of the sales person on target basis and the area
covered. The performance appraisal is check on quarterly basis and on that basis there Sales
Manager assigns new target.
Comparison of Sales and distribution in Tata Motor and Tata Motor India
In the distribution channels both the organization have same distribution channel. But in
other parts of the country Tata Motor distribute the Tata Car through C&f and Tata Motor
India distribute through Super. But the main functions of both are more or less same.
Tata Motor doesnt give franchise but Tata Motor India does and offer around 1-2 crores for
that.
Tata Motor take the payment in advance but Tata Motor India takes payment at the time of
delivering of the goods and also gives credit to some dealers.
Both have their own warehouses, which are manage by their own staff.
Tata Motor increases the annual target of Distributor and C&f by 10-15% whereas Tata
Motor India increases by 5 10%.
The owner of Tata Motor checks the annual target of all the distributors and C&F whereas in
Tata Motor India Sales manager checks it.
The performance of the Sales person is check on monthly basis in Tata Motor whereas on
quarterly basis in Tata Motor India.
Research Methodology
3.1 Types of research
Based on the objectives of the study, there are two types of Research:
Exploratory Research- Exploratory research is conducted when one is seeking insights

into the general nature of a situation, the possible decision alternatives, and the relevant
variables that need to be considered. While conducting my study, I used exploratory
research, which was flexible and was aimed at identifying all the attributes that provides
satisfaction to customers before and after buying a vehicle. I undertook an intensive
review of the automobile industry in India, and screened some issues which I as a
researcher felt needed more clarification or study.
Descriptive research- My exploratory research conducted brought out a host of factors

which affect the customer buying attitude. These factors were then filtered to form a set
of the most important alternatives, which might affect a consumers and a retailers
decision regarding the purchase of vehicle and which brand they prefer. The purpose was
to find an accurate snapshot of the market environment of automobiles.
3.2 Data collection procedure used in my research :
Pilot Study
After constructing the questionnaire, the pilot survey was conducted among 6 individuals from
the sales force of the company to find out the errors, if any.
Questionnaire
The questionnaire method has come to the more widely used and economical means of data
collection. The common factor in all varieties of the questionnaire method is its reliance on
verbal responses to questions, written or oral. The researchers found it essential to make sure the
questionnaire was easy to read and understand to all spectrums of people in the sample. It was
also important as researchers to respect the samples time and energy hence the questionnaire was
designed in such a way, that its administration would not exceed 4-5 minutes. The questionnaires
were personally administered. As far as possible, the questionnaires were filled by me and not
given to the respondents.
Field work
Field work is a general descriptive term for the collection of raw data direct from the consumers,
as opposed to secondary research. It plays an important role in collecting the data. My sample
size was 157. In my research, I had to take the feedback from the existing customers of Tata
Motors to know about their satisfaction level and the areas in which the company was lagging.
Some important points which I kept in mind while doing the fieldwork-
Making the respondents comfortable before questioning them by introducing ourselves
as students of Amity Business School and ensuring the respondent that all information
collected is only for academic purpose and will be kept absolutely confidential.
Ensuring that we fill the questionnaires ourselves.
Not leading a person into any preconceived notion.
Not influencing the respondents answers in any way/form.
Using simple language, so that the technical language does not intimidate the respondent.
3.3 Data collection techniques
Primary data
Pilot Study
Questionnaire
Secondary data
It refers to the already existing data. I collected them by following methods
Internet
Books
Published Articles
Journals
Newspaper Articles
Data Interpretation Tools

Following softwares has been used during analysis and compiling of data.
SPSS Software
Microsoft Excel
Microsoft Word
4. FINDINGS AND ANALYSIS
Q 1)
Which of the following best describes your line of work?
Cumulative
Frequency Percent Valid Percent Percent
Valid services 36 22.9 22.9 22.9
business 66 42.0 42.0 65.0
student 27 17.2 17.2 82.2
Taxi services 28 17.8 17.8 100.0
Total 157 100.0 100.0
From this we interpret that
most of the customers in that area are business people followed by service class. The housewives
do not come to the showroom for the service or purchase of cars.
Q2)
What parameters do you seek in a car before buying

Cumulative
Valid brand popularity 19 12.1 12.1 12.1
Performance 69 43.9 43.9 56.1
looks & style 69 43.9 43.9 100.0
Total 157 100.0 100.0
The customers look for performance and looks& style in a car before purchasing it. Brand name
does not play a vital rule in it.
Q3)
how long have you been associated with tata motors
Frequency Percent Valid Percent Cumulative Percent

Valid 0-1 18 11.5 11.5 11.5
1-3 54 34.4 34.4 45.9

3-5 66 42.0 42.0 87.9
more than 5 19 12.1 12.1 100.0
Total 157 100.0 100.0
Q4)
Which company's car do you possess

Valid Tata 106 67.5 67.5 67.5
Fiat 51 32.5 32.5 100.0

Total 157 100.0 100.0
Most of the customers prefer buying Tata cars over Fiat .
Q 5)
If rebuying would you select Tata of Fiat

Valid Yes 127 80.9 80.9 80.9
No 30 19.1 19.1 100.0

Total 157 100.0 100.0
The customers are satisfied with their cars . this is the reason they can rebuy this companys car .
Q 6)
What parameter important for rebuying

Valid post sales service 43 27.4 27.4 27.4
Mileage 68 43.3 43.3 70.7

maintenance cost 46 29.3 29.3 100.0
Total 157 100.0 100.0
Of all the customers of TATA motors , most of them consider mileage of the car as an important
parameter for rebuying decision.
Q7a)
rate tata motors on following parameter knowledgeable sales person

Valid 2 3 1.9 1.9 1.9
3 33 21.0 21.0 22.9

4 108 68.8 68.8 91.7
5 13 8.3 8.3 100.0
Total 157 100.0 100.0
The salesperson at the company are rated fairly knowledgeable.
Q7 b)
employees spend enough time with you before sales

Valid 3 24 15.3 15.3 15.3
4 121 77.1 77.1 92.4

5 12 7.6 7.6 100.0
Total 157 100.0 100.0
The customers feel that the employees spend sufficient time before the sales
Q7b)
employees spend enough time with you after sales

Valid 2 6 3.8 3.8 3.8
3 27 17.2 17.2 21.0

4 115 73.2 73.2 94.3
5 9 5.7 5.7 100.0
Total 157 100.0 100.0
The customers also feel that the employees spend good enough time even after sales is
conducted.
Q7 c)
Spare parts availability

Valid 2 15 9.6 9.6 9.6
3 39 24.8 24.8 34.4

4 84 53.5 53.5 87.9
5 19 12.1 12.1 100.0
Total 157 100.0 100.0
The customer has a mixed opinion to the availability of the spare parts at the service center .But
still the majority has a positive view to it that the spare parts are readily available.
Q7d)
Is the Vehicle in good condition at the time of delivery

Valid 3 27 17.2 17.2 17.2
4 109 69.4 69.4 86.6

5 21 13.4 13.4 100.0
Total 157 100.0 100.0
The vehicle delivered at the time of ownership and after sales is presented in good condition.
Representation of anything is an important feature. It leaves a positive impression on the
customers.
Q7e)
Are the prices affordable

Valid 3 27 17.2 17.2 17.2
4 106 67.5 67.5 84.7

5 24 15.3 15.3 100.0
Total 157 100.0 100.0
The prices of the service, spare parts are rendered affordable by the customers. It is an important
parameter because all the other companies charge high values on spare parts. The customers
become hesitant in getting their cars serviced at the authorized service center. They rather look
for cheaper options elsewhere.
Q7f)
Are there any attractive discounts offered

Valid 2 21 13.4 13.4 13.4
3 124 79.0 79.0 92.4

4 9 5.7 5.7 98.1
5 3 1.9 1.9 100.0
Total 157 100.0 100.0
This analysis states that there are less attractive discounts offered by the company. This happens
in a condition when a company is following low pricing strategy. The company has not much
scope to offer discounts. This sometimes can even go against you. There is tendency among
people to cherish the discounts that is offered to them. But in the long run the strategy is
beneficial.
Q7g)
Is the dcor of the waiting area pleasing

Valid 2 51 32.5 32.5 32.5
3 88 56.1 56.1 88.5

4 15 9.6 9.6 98.1
5 3 1.9 1.9 100.0
Total 157 100.0 100.0
This is the point that the company should improve on. The customers perceive the dcor of the
waiting area not up to the standards. The company should give a serious thought on improving
this .After giving the car for service the customers wait for their cars in the waiting lounge.
Q7h)
Is post sale follow ups done regularly

Valid 1 3 1.9 1.9 1.9
2 9 5.7 5.7 7.6

3 45 28.7 28.7 36.3
4 97 61.8 61.8 98.1
5 3 1.9 1.9 100.0
Total 157 100.0 100.0
Post sales follow up is done on regular basis as seen from the analysis
Q7i)
Are the complaints responded quickly
Cumulative
Valid 1 9 5.7 5.7 5.7
2 6 3.8 3.8 9.6
3 34 21.7 21.7 31.2
4 93 59.2 59.2 90.4
5 15 9.6 9.6 100.0
Total 157 100.0 100.0
The complaints are duly attended and responded quickly by the employees. The mean value of
the sample is 3.63 which is above average .
Q7 j)
Is the service at Tata Motors excellent
Cumulative
Valid 1 3 1.9 1.9 1.9
2 9 5.7 5.7 7.6
3 27 17.2 17.2 24.8
4 103 65.6 65.6 90.4
5 15 9.6 9.6 100.0
Total 157 100.0 100.0
When the vehicle is given for servicing, the customers feel that their vehicles have been properly
taken care of. All the complaints have been looked after. The mean value comes to be 3.75
Q7k)
Are all the commitments fulfilled
Cumulative
Valid 1 6 3.8 3.8 3.8
2 12 7.6 7.6 11.5
3 45 28.7 28.7 40.1
4 70 44.6 44.6 84.7
5 24 15.3 15.3 100.0
Total 157 100.0 100.0
The mean value is 3.6. Majority of the customers perceive that the commitments by the company
are fulfilled.
Q7 l)
Do you find the car value for money
Cumulative
Valid 2 6 3.8 3.8 3.8
3 24 15.3 15.3 19.1
4 97 61.8 61.8 80.9
5 30 19.1 19.1 100.0
Total 157 100.0 100.0
The customers satisfaction is perceived by the parameter whether they find their car value for
money. If this is not the case then the customer is dissatisfied and does not consider the car for
re-buying. But this is not case with the cars of Tata motors, the customers find the car value for
money. The mean is 3.96
Q 8)
payment procedure preference
Cumulative
Valid cash 30 19.1 19.1 19.1
cheque 27 17.2 17.2 36.3
finance 100 63.7 63.7 100.0
Total 157 100.0 100.0
Most of the customers prefer purchasing a car by the method of finance. So the company should
have links with various finance companies at their respective dealership showroom for the
convenience of customers. The easy the method of financing, more customers are attracted to the
company than their competitors. It gives the company an edge over its competitors.
Q 9)
Are you aware of following facilities offered :Tata Motors Insurance

Cumulative
Valid yes 151 96.2 96.2 96.2
no 6 3.8 3.8 100.0
Total 157 100.0 100.0
There are various extra facilities that are provided to the customers for extra benefits and
convenience. One of them is Tata Motors Insurance. It is a cashless insurance in which during
the time of claim, the customer does not have to pay cash and latter get it reimbursed. The
majority of the customers were aware of this facility which means that sales force of the
company is efficient .
Extended warranty
Cumulative
Valid YES 157 100.0 100.0 100.0
Here a complete sample knew about the extended warranty facility offered by the company
which is a good sign.
True value
Cumulative
Valid yes 133 84.7 84.7 84.7
no 24 15.3 15.3 100.0
Total 157 100.0 100.0
This was the facility primarily started in the market by Maruti company. The customers used to
face various problems while selling off their cars. So to provide convenience to the customers the
true value concept came into existence. It was a one stop solution for the customers to get the
best value for their used cars. The customers have a confidence that he will not be cheated. This
adds to extra benefits offered by the company to keep the customers. They give good exchange
offers also if you purchase another car of the same company. The majority of the customers knew
about it.
Tata finance
Cumulative
Valid yes 151 96.2 96.2 96.2
no 6 3.8 3.8 100.0
Total 157 100.0 100.0
The company also introduced the finance counter for the customers to avail car loans at the
dealership showroom. Everything is at customers convenience. Customer does not has to run
here and there for getting the financing done. The customers were aware of it.
Autocard
Cumulative
Valid yes 15 9.6 9.6 9.6
no 142 90.4 90.4 100.0
Total 157 100.0 100.0
It is a facility in which a customer get points for every 100 rupees spent with the company .
These points can later be redeemed. These are also applicable for various offers during the year.
The customers were not aware about this facility of Tata Motors. The company should make an
extra effort to familiarize this facility to the customers.
Genuine accessories
Cumulative
Valid yes 151 96.2 96.2 96.2
no 6 3.8 3.8 100.0
Total 157 100.0 100.0
The customers should use genuine accessories. There are many duplicate product that are
available in the market. People use them to save cost. But the customers be made aware about
the negative effects that these duplicate products have on the efficiency of the car. These lead to
early wear and tear. It can also prove fatal. The customers were aware of the fact to use genuine
accessories.
Q 10)
Overall opinion of tata motors
Cumulative
Valid very bad 3 1.9 1.9 1.9
Bad 12 7.6 7.6 9.6
neither bad nor good 21 13.4 13.4 22.9
Good 103 65.6 65.6 88.5
very good 18 11.5 11.5 100.0
Total 157 100.0 100.0
One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
T df Sig. (2-tailed) Mean Difference Lower Upper

Overall opinion of Tata 11.729 156 .000 .771 .64 .90
motors
The mean value is 3.77. The opinion of customers on Tata motors is towards the positive side. In
t-test we have seen the mean difference to be .771. The customers are happy with their car and
have a good experience.
Q 11)
would you recommend tata motors to anybody else
Cumulative
Valid Yes 127 80.9 80.9 80.9
No 21 13.4 13.4 94.3
Can't say 9 5.7 5.7 100.0
Total 157 100.0 100.0
Most of the customers are ready to take responsibility and recommend the cars to their family
and friends. This is the best method of advertisement i.e. the word of mouth. It does not cost the
company and is most influential. So having such customers is advantageous to the company. The
company should not loose such customers by dissatisfying them. The company has an advantage
by having a great deal of these type of customers.
Q 12)
Gender
Cumulative
Valid male 145 92.4 92.4 92.4
female 12 7.6 7.6 100.0
Total 157 100.0 100.0
Most of the customers that come to the showroom are males. Even if the cars are being bought
for females, the males come on their behalf.
Q 13)
Age
Cumulative
Valid 18-25 36 22.9 22.9 22.9
26-35 67 42.7 42.7 65.6
36-50 48 30.6 30.6 96.2
Above 51 6 3.8 3.8 100.0
Total 157 100.0 100.0
People of all age groups come to the showroom but the majority are
of age group 26-35 followed by 36-50 age group .
Q 14)
Income group (in lacs)
Cumulative
Valid below 3 30 19.1 19.1 19.1
3-6 28 17.8 17.8 36.9
6-9 63 40.1 40.1 77.1
9-12 27 17.2 17.2 94.3
Above 12 9 5.7 5.7 100.0
Total 157 100.0 100.0
People of all income groups come to purchase cars. It has become a necessity rather than luxury.
There are all segments of cars available according to the need.
gender * Which company's car do you possess Crosstabulation
Count
Which company's car do you
possess
Tata Fiat Total

gender male 100 45 145
female 4 8 12
Total 104 53 157
From this we can state that males prefer buying the car of Tata whereas female prefer buying car
of FIAT.
gender * What parameters do you seek in a car before buying Crosstabulation
Count
What parameters do you seek in a car before buying Total
brand popularity performance looks & style

gender Male 19 66 60 145
Female 0 3 9 12
Total 19 69 69 157
Males look for performance as a parameter in their decision making to purchase cars where as
female prefer looks and style of the car as a parameter before purchasing.
gender * What parameter important for rebuying Crosstabulation
Count

post sales maintenance
service mileage cost Total
gender male 37 65 43 145
female 6 3 3 12
Total 43 68 46 157
Males prefer mileage as a parameter for re-buying followed by maintenance cost and then post
sales service where as females look for post sales service as an important parameter for making
re-buying decision.
Which of the following best describes your line of work? * Which company's car do you
possess Crosstabulation
Count
Which company's car do you
possess
Tata Fiat Total

Which of the following best services 30 6 36
describes your line of work? business 32 34 66
student 17 10 27
Taxi services 25 3 28
Total 104 53 157
People of service class possess more of Tata cars than FIAT.

Customers from business class prefer FIAT cars over Tata.
Students also have an inclination towards Tata cars.
Taxi owners prefer Tata cars because of its mileage.
Which of the following best describes your line of work? * What parameter important for rebuying
Crosstabulation
Count
What parameter important for rebuying Total

post sales maintenance
service mileage cost
Which of the following best services 6 18 12 36
describes your line of work? business 25 28 13 66
student 9 3 15 27
Taxi services 3 19 6 28
Total 43 68 46 157
Customers of service class give more importance to mileage than maintenance cost followed by
post sales service.
Customers from business class have an almost equal weightage for mileage and post sales
service but mileage has an upper hand. The least important parameter as maintenance cost.
In case of students, maintenance cost is the prime parameter followed by post sales service and
mileage.
In case of taxi, mileage plays an important role followed by maintenance cost.
Age * What parameters do you seek in a car before buying Crosstabulation

Count
What parameters do you seek in a car before buying Total
brand popularity performance looks & style

Age 18-25 0 6 30 36
26-35 7 33 27 67
36-50 12 27 9 48
Above 51 0 3 3 6
Total 19 69 69 157
Customers from the age group 18-25 goes for looks & style of the car for buying it.
From the age group 26 and above, they give more importance to performance of the car.
Age * What parameter important for rebuying Crosstabulation
Count
post sales service mileage maintenance cost Total

Age 18-25 12 3 21 36
26-35 13 41 13 67
36-50 15 21 12 48
Above 51 3 3 0 6
Total 43 68 46 157
In making their re-purchase decision, customers from age group 18-25 give importance to
maintenance cost than post sales service and lastly to mileage.
Where as all the customers from other age groups give preference to mileage in rebuying.
Which of the following best describes your line of work? * payment procedure preference
Crosstabulation
Count
payment procedure preference Total
cash cheque finance

Which of the following best services 6 0 30 36
describes your line of work? business 24 27 15 66
student 0 0 27 27
Taxi services 0 0 28 28
Total 30 27 100 157
Customers from service sector, students and taxi service providers prefer finance as a mode of
payment for the purchase of cars. Where as business class prefer payment to be made either by
cash or cheque.
Which company's car do you possess * Spare parts availability Crosstabulation

Count
Spare parts availability Total
2 3 4 5
Which company's car do you Tata 3 15 76 10 104
possess Fiat 12 24 8 9 53
Total 15 39 84 19 157
Customers of Tata have given higher rating to the availability of the spare parts than that of FIAT.
The spare parts of FIAT were not available at all times.
Income group (in lacs) * payment procedure preference Crosstabulation

Count
payment procedure preference
cash cheque finance Total

Income group (in lacs) below 3 0 0 30 30
3-6 0 3 25 28
6-9 21 6 36 63
9-12 9 10 8 27
Above 12 0 9 0 9
Total 30 28 99 157
Customers below the income of 3 lacs finance their vehicles. From 3-6 lacs also customers go for
financing scheme. In the group 6-9 lacs financing is still the majority but a great deal of rise in
cash mode of payment is seen. In 9-12 lacs cash and cheque mode of payment is seen. Customers
above the income group of 12 lacs prefer making the payment by cheque and do not prefer
financing their vehicles.
5. CONCLUSION & RECOMMENDATIONS
Fiat car is preferred more by females rather than males. Business class also has an
inclination towards Fiat more.
The dcor of the waiting lounge is rated less by the customers, the company should take
measures to improve on it.
The availability of spare parts of Fiat cars is less whereas of Tata are readily available. So
the company should pay more attention to it.
Most of the customers purchase the cars by mode of financing. There are many customers
who after purchasing the cars are not able to pay EMI. So they are considered defaulters.
There are many such cases of defaulters. The finance company has be vigilant as to who to
give the consent or not.
There are many enquiries which are cold enquiries. The sales person has to make an extra
effort to convert the cold and warm enquiries to hot enquiries. Due to negligence of sales
man there are many loss of customers
Sales Man
Should be well versed with the pay scale structure.
Incentive slabs should be formulated to endure them for more sales.
Sales man should be friendlier and solve the problems from both the consumers and
company's point of view.
Should be motivated to open new outlets, keeping in mind the incentives being provided on
it.
Sales man should clear the schemes as soon as possible.
Should ensure that full product range is available with the ready stock.
Sale man should be energetic, be patients, quick decision maker, problems solver and ready
to do any kind of work related to his job profile.
Stockiest
To maintain more friendly relationship with the sales man and retailers.
Universal launch of scheme along with the arrangement with the company.
Should have enough of display material for the outlets.
Sales Executive
To attend to complaints/problems being recorded by sales man as soon as possible.
To maintain cordial relationship with the sales man.
Sales Executive should attend all key accounts and regular visit should be made every week.
He should also appreciate them for their good work.
Random /surprise checks to be made at the outlets to access the working of sales man and
whether the schemes are duty fully given to the retailers irrespective of the category of the
outlets.
To increase the coverage of outlets

1) The outlets, which have stopped purchasing from distributors due to any kind of dispute
between stockiest and the retailer, should be solved by the timely action of sales executive.
2) The company should come out with suggestion Letter's that should be given on a quarterly
basis to all the retailer's and stockiest, so that the sales Executive handling a particular belt is
aware of the problems, grudges, grievances of the retailers. This will help him in taking
timely action, which will save the matters from aggravating further.
5.2 REFLECTIONS ON WHAT HAS BEEN LEARNED DURING THE INTERNSHIP
EXPERIENCE
It was great opportunity for me to do my internship from TATA Motor.
I got a project which gave me the opportunity to meet the various people in the corporate
world. I could understand the working culture of corporate as well as government offices.
Before this I never visited such big organizations.
Making plan for the next day and finding the concern department and person allowed me to
increase my communication ability, written as well as verbal.
My confidence to meet people has tremendously gone up. Today I have that much confidence
that I can meet to any big person in any organization.
My boss also helped me very much to learn about corporate world. How to prepare the
proposals and how to give the company offer all I learnt from my boss.
I also attended the customer demonstration which gave me the knowledge about how the
customer can be convinced, how there queries are handled.
I also learnt very small-small things in the organization which is very necessary in any flat
organization like photocopying; Fax the document which I never know before.
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MCEE-MAHARISHI INSTITUTE OF MANAGEMENT

SUBMITTED FOR THE PARTIAL FULFILMENT OF MBA

Date- Student Sign:-

Syed Mazhar Zaidi

1.2. Industry Profile

1.3. Company Profile

Chapter 2: Distribution of Tata Motors 34

Chapter 3. Research Methodology 44

Chapter 4. Findings and Analysis 47

Annexure (Sample Questionnaire) 82

AUTOMOBILE INDUSTRY IN INDIA

Automobile industry in India comprises of 13 million direct and indirect employees. It

Automobile Domestic Sales Trends (Number of Vehicles)

CARS BY PRICE RANGE

Maruti 800, Alto, Omni

Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In

Tavera - Rebadged Isuzu Panther

Santro - second generation Hyundai Atos

Qualis (Discontinued) - 3rd Generation Toyota Kijang

Tata Motors commences distribution of Fiat Cars across India

Time line and milestones

Tata Motors launches its first truck in collaboration with Mercedes-Benz

Auto policy of Government of India (GOI) envisions to establish a globally competitive

2nd distribution channel

3rd distribution channel

4th distribution channel

Own sales force

Value Resellers Resellers

Companys warehouse Customer

3.1 Types of research

Exploratory Research- Exploratory research is conducted when one is seeking insights

Descriptive research- My exploratory research conducted brought out a host of factors

3.2 Data collection procedure used in my research :

Ensuring that we fill the questionnaires ourselves.

Not leading a person into any preconceived notion.

Not influencing the respondents answers in any way/form.

3.3 Data collection techniques

Data Interpretation Tools

4. FINDINGS AND ANALYSIS

From this we interpret that

What parameters do you seek in a car before buying

how long have you been associated with tata motors

Frequency Percent Valid Percent Cumulative Percent

1-3 54 34.4 34.4 45.9

Frequency Percent Valid Percent Cumulative Percent

Fiat 51 32.5 32.5 100.0

Most of the customers prefer buying Tata cars over Fiat .

Frequency Percent Valid Percent Cumulative Percent

No 30 19.1 19.1 100.0

Frequency Percent Valid Percent Cumulative Percent

Mileage 68 43.3 43.3 70.7

Frequency Percent Valid Percent Cumulative Percent

3 33 21.0 21.0 22.9

The salesperson at the company are rated fairly knowledgeable.

Frequency Percent Valid Percent Cumulative Percent

4 121 77.1 77.1 92.4

Frequency Percent Valid Percent Cumulative Percent

3 27 17.2 17.2 21.0

Frequency Percent Valid Percent Cumulative Percent

3 39 24.8 24.8 34.4

Frequency Percent Valid Percent Cumulative Percent

4 109 69.4 69.4 86.6

Frequency Percent Valid Percent Cumulative Percent

4 106 67.5 67.5 84.7