A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT at TAT A MOTORS

Submitted ToMrs. Shilpi Jain Basics of IT & MIS

Submitted By –

Ankit Agarwal

FMG19C (191125)

Arun V Sreenivasan FMG19C (191132) Divyadeep Goel Mayank Gupta Samarth Saxena Sunny Behl FMG19C (191138) FMG19C (191147) FMG19C (191168) FMG19C (191179)

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DECLARATION

We hereby declare that the project report titled “ Customer Relationship Management at TATA MOTORS ” is my own work and has been carried out under the able guidance of Mrs. Shilpi Jain, Faculty, FORE. All care has been taken to keep this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.

Thank You. Date: 06 September 2010 Place: New Delhi

(Divyadeep Goel)

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I would like to express my thanks and heartfelt gratitude to Mrs. Shilpi Jain for her constant support and guidance which encouraged us to go beyond the realm of theoretical knowledge and study industry dynamics which has been the most enriching and insightful experience of this term. It is a hope that my endeavor will prove to be a successful one. so we have presented a general demo of CRM on demand. Ankit Aggarwal (191125) Arun V Sreenivasan (191132) Divyadeep Goel Mayank Gupta Samarth Saxena Sunny Behl (191138) (191147) (191168) (191179) 3 . As the company is not disclosing its software details to us. We collected information from both primary & secondary data.ACKNOWLEDGEMENT I am overwhelmed in all humbleness and gratefulness to acknowledge my debt to those who have helped me to put these ideas well above the level of simplicity and up to something concrete. It provided an opportunity to me to upgrade my skills and to sharpen my professional knowledge by forecasting for the collected data. We divided our group of 6 members into 3 groups of 2 each and visited various dealer’s showroom of TATA motors. and asked their respective relationship managers about the companies offerings to get detailed knowledge of CRM applications & practice in real business scenario.

................................................23 REFERENCES ..... 8 FEATURES ..................................................... 6 THE PROPOSAL ...............................21 CONCLUSION .......................................................................................................................................................................................................................................................................................................24 4 ................................................................................................................................. 5 SCOPE & LIMITATIONS .................. 9 DELIVERABLES ...........................................................................................10 IMPLEMENTATION ..............................................................................................................................................................................................................................................................................................................................................................................................Table of Contents TATA MOTORS ......................................................................

now known as Tata Daewoo Commercial Vehicle. In 2004 Tata Motors bought Daewoo's truck manufacturing unit. India. In India Tata ranks as the leader in every commercial vehicle segment. Pantnagar.000 dealer locations now use Oracle’s Siebel Customer Relationship Management (CRM) software to help the company get closer to its customers. Tata Motors has consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008. in South Korea. Tata Motors in 2005 was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. which also includes the Daimler and Lanchester brands and the purchase was completed on 2 June 2008.81% share of the world market in 2007 according to OICA (Organization Internationale des Constructeurs d'Automobiles) data. it acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange. South Africa and Thailand. which at INR 100. It also acquired Hispano Carrocera SA. and is in the top 3 makers of passenger cars. as well as in Argentina. when the company began manufacturing locomotives. It is India's largest company in the automobile and commercial vehicle sector with upwards of 70% cumulative market share in the domestic commercial vehicle segment. which ended in 1969.TATA MOTORS Tata Motors Ltd is a multinational corporation headquartered in Mumbai. Part of the Tata Group. and had a 0. Sanand and Pune in India. Siebel CRM gives Tata Motors a 360–degree view of the customer and helps the company design better offerings based on customer demands and feedback.000 (ex-factory) is the cheapest production car in the world. now a fully owned subsidiary. as well as on the New York Stock Exchange.000 Tata Motors dealer personnel in over 1. More than 15. In March 2008. Established in 1945. Tata Motors is also the designer and manufacturer of the iconic Tata Nano. The OICA ranked it as the 19th largest automaker. 5 . The company is the world’s fourth largest truck manufacturer. the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG. Lucknow. Ahmedabad. and the world’s second largest bus manufacturer. it was formerly known as TELCO (TATA Engineering and Locomotive Company). based on figures for 2007 and the second largest manufacturer of commercial vehicles in the world. Tata Motors has auto manufacturing and assembly plants in Jamshedpur.

and overcome the difficulties of a widely dispersed dealer network. started deploying Siebel CRM in 2003 as part of its web–based. and are a major source of customer dissatisfaction) • Provide a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction) 6 . Proponents say they can improve customer service by facilitating communication in several ways: • Provide product information.) Improving customer service CRM’s are claimed to improve customer service.automation to the basic business processes (marketing. email. The dealer management system and Siebel CRM solution were deployed to meet increasing competition from global players.Tata Motors. SCOPE & LIMITATIONS The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers. and/or other marketing actors. CRM is based on the premise that. web. service) · Analytical . meet the challenges of a cyclical business environment.support to analyze customer behavior. by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. centralized dealer management system. before they occur • Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved. The Siebel CRM deployment at Tata Motors and its dealer outlets is one the largest in the global automotive industry. India’s largest integrated automaker. and technical assistance on web sites that are accessible 24 / 7 • Help to identify potential problems quickly.. product use information. implements business intelligence · Co operational . As it has a large team of sales and customer support personnel spread across the country.. There are three parts of application architecture of CRM: · Operational . sales.ensures the contact with customers (phone. fax. the company decided to use an integrated dealer management system and Siebel CRM to improve its management effectiveness.

7 . If a company fails to provide quality customer support. they have also failed with their CRM system. and it has become easier for customers to switch companies if they are not happy with the service they receive.• Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction) • Identify how each individual customer defines quality. The company should also seek to make sure those mistakes are not repeated. and analytical. When a customer makes complaints. it can be used merely to make "better use" of data the corporation already has. Customer Acquisition Customer Retention Customer Extension The competition in the global market has become highly competitive. It is also important to understand the architecture of Customer relationship management.some feel it invades customer privacy and enable coercive sales techniques due to the information companies now have on customers . When sales are made. and these are collaborative. When it is used effectively.see persuasion technology. The architecture of CRM can be broken down into three categories. It is important to realize that CRM is more than just a technology. and then design a service strategy for each customer based on these individual requirements and expectations • Use Internet cookies to track customer interests and personalize product offerings accordingly • Use the Internet to engage in collaborative customization or real-time customization There are a number of reasons why CRM has become so important in the last 10 years. CRM does not necessarily imply gathering new data. Customer relationship management tools will generally come in the form of software. Privacy and ethical concerns CRM’s are not however considered universally good . The collaborative aspect of CRM deals with communication between companies and their clients. they must be handled quickly and efficiently. One of the primary goals of CRM is to maintain clients. Each software program may vary in the way it approaches CRM. But in most cases they are used to collect new data. Customer support is directly connected to CRM. operational. they should be tracked so that the company can analyze them from various aspects. However. a company will be able to build a relationship with their customers that can last a lifetime.

and after sales.000 users across the country • Platform for providing better customer experience.000 sales and service executives expected to use Siebel Automotive. Currently in use by 500 sales and service personnel. the Siebel CRM solution is expected to be deployed to TATA Motors' entire network of 250 dealer organizations in India. delivery. synchronize.600 locations and 10. having standard operations across dealer networks to deliver the customer experience. 8 . This started out as a dealer management project. a customer relationship management (CRM) solution. while strengthening its position as a worldclass automotive brand • Improve operational efficiency With these objectives in mind TATA motors has deployed Siebel Automotive. but soon extended to a customer management joint initiative.200 dealers and their 10. TATA Motors wanted the same customer experience across the network. The major reasons for TATA Motors to look for CRM initiative was • • • Cyclical nature of automotive demand Competition from new entrants Manage. and implementing common processes for sales. This included creating a brand with dealers so that showrooms looked like Tata. TATA Motors realized that they had limited insight to what customers wanted and what the consumer was buying.THE PROPOSAL In 2002. It needed to improve demand visibility while forging deeper relationships with dealerships and it also wanted consistency in delivering the customer experience. with more than 1. and coordinate interactions with 1.

9 . Tata Motors links its 1.000-plus dealer sales force Covering a country with an area of 3.provide access to data for different organizations while maintaining the security and privacy of each organization Can be deployed easily over the Internet Provides robust partner management capabilities—ideal for Tata Motors with its far-flung dealer network The user-friendly interface has simplified the process of training Tata Motors’ 10.FEATURES Some of the unique features of the CRM employed by TATA Motors are:- Multi.600 customer touch points with its centralized data center in Mumbai using a combination of VSAT’s and high-speed virtual private networks.organization support .3 million square kilometers also required an innovative communications solution.

D. Following are the results of J.DELIVERABLES Issues which motivated TATA Motors to implement this particular Enterprise system It was seen that Tata Motors has consistently been ranked quite low in terms of its performance in this field leading to its work in the CRM department. Power survey: 10 .

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600 dealer locations and respond promptly to customer requests. • Required better feedback on product quality and more effective measurement of campaigns and programs. 12 .Therefore TATA Motors – • • Needed a centralized customer database and standardized business processes Needed to communicate better with more than 1. To satisfy these it launched its CRM initiative to become more customer centric and improve its service so that it could retain its customer.

Pricing and tax calculations can be adjusted for each dealer's requirements. California. By 2007 Oracle had the third-largest software revenue. customer relationship management software (CRM) and supply chain management (SCM) software 13 . and enables TATA to track each vehicle throughout its life cycle.000 people worldwide as of 2009. Tata Motors has also partnered with IBM to become IBM's first automotive on-demand client in India. after Microsoft and IBM. and parts location. ORACLE Oracle Corporation is a multinational computer technology corporation that specializes in developing and marketing enterprise software products — particularly database management systems. United States. In addition. 360-degree view of the customer to all who need it. provides a single. facilitates coordination between TATA and its dealers. fulfillment. The company also builds tools for database development and systems of middle-tier software. taking benefits of the Global Service Delivery Centre based in Bangalore. the Oracle Database. The implementation on IBM's high-end Power5 servers & enterprise storage is the largest centrally hosted implementation of Siebel CRM worldwide within the automotive industry. Siebel Automotive has been closely integrated with a wide array of back-office applications. The unique outside-in approach adopted by Tata Motors and the extended use of Oracle’s Siebel CRM makes it one of the most sophisticated and largest Siebel CRM implementations globally. including applications for inventory management. a comprehensive suite of business applications. enterprise resource planning software (ERP). Headquartered in Redwood Shores.SOFTWARE IMPLEMENTEDTata Motors has built its DMS using Oracle’s Siebel verticals and uses Siebel CRM and Siebel Analytics for all pre and post sales operations. It has enlarged its share of the software market through organic growth and through a number of high-profile acquisitions. The corporation has arguably become best-known due to association with its flagship product. Oracle employs more than 115. Siebel Automotive. comprehensive sales and reporting functionality built into Siebel Automotive enables TATA to distribute sales targets to its dealers and roll up sales numbers across the country.

Oracle is the clear market leader in the local CRM market. insurance.Oracle has more than 700 applications customers in India. Tata Consultancy Services. banking. With over 50 customers using Oracle CRM applications in India. The major releases of Siebel include Siebel 98 Siebel 99 Siebel 6 (also known as Siebel 2000) Siebel 7 (Released in 2001) Siebel 8 (Released on 2007). Siebel provides industry specific versions of their CRM software called the Verticals like Siebel Automotive (used by auto companies) Siebel Energy (used by energy companies) Siebel Consumer Goods (used by consumer goods companies like Procter and Gamble) Siebel Financials (used by finance companies like Chase) Siebel Pharma (used by pharmaceuticals companies) 14 . UTI Bank. Genpact. was founded in 1993 by Thomas M.x version. Siebel Systems.Current Version There are still many companies working on Siebel 6 but most companies now are currently working in Siebel 7.8 billion. including telecommunications. These include well–known names such as Bharti Airtel. The company grew very quickly and their revenue in 1996 was $39 million. and later taken over by Oracle Corporation on 2006. Siebel and Patricia House. It was first started by Siebel Systems Inc. manufacturing and utilities in both the government and the private sectors. Tata Sky and Hutch. So Siebel products are now Oracle CRM product. SIEBEL CRM Siebel is the most popular CRM software available in the market. Oracle’s applications customers in India span major industries. IFFCO Tokio. On 2006 Oracle acquired Siebel Systems for $5. Inc. Bank of Maharashtra. It went public on 1996 and on 2000 their revenue surpassed $1 billion mark.

warranty. a CRM-DMS roadmap was developed. with TCS’s help. These are deployed in a central hosted and web-enabled environment.200 dealers across the country Offers a 360-degreeview of the customer and vehicle information and a streamlined workflow Required feedback on product quality and Enhances product quality and increases revenues Back Office: SAP effective measurement from vehicle sales as well of programmes as after-sales business TATA Motors already had SAP and legacy systems in place for ERP. logistics and inventory management Database: Oracle Hardware: IBM Needed to communicate with over 1.600 in the next few months) and has allowed it to monitor finances and inventory at the dealer level. they selected Siebel eAutomotive and eDealer. After an evaluation period. Then. spares and complaints at the customer end. This CRM-DMS initiative. such as vehicle sales.Challenges Solution Components A centralized customer Improves demand database forecasting. including spare part management. has enabled the company to connect with 1. which has cost Tata Motors about Rs35 crore to date. and finance and leasing. and services. They also integrated back-office functions of dealers. 15 . This was back in 2003. planning. and warranty and claim settlement with data feeds to the SAP accounting system. they laid out the business processes required.200 dealers online (the number is expected to rise to 1. vehicle inventory management. and spare sales. service. They integrated customer-facing dealer functions. First.

almost like a mini ERP. The team of business managers. This took time and a lot of change management.Historically. Therefore TATA Motors needed to provide dealers with an easier way of doing business and receiving information from them.TATA Motors also had technical infrastructure and computer literacy challenges in India that needed attention. Four of the largest dealers were selected as part of the initial pilot. training. So the major stakeholders in this project have been TATA Motors themselves and their 1200-1600 dealers. The project had executive sponsorship from the directors on Tata Motors’ board. for the Siebel costs. 16 . TATA Motors invested in the infrastructure for the centrally hosted system. Also supporting and upgrading home grown application will be a pain as employee’s leave and the knowledge base will be gone. But there are many other reasons to believe as to why applications like Siebel CRM available outside market would be much more beneficial in the long. led by senior executives. software. while reassuring the dealers of the security of the data. but they have to invest in their hardware. Now the dealers are able to use Siebel to buy and sell cars. But if an application like Siebel CRM is implemented. Homegrown applications could become very complicated and would take a hell lot of time to implement it and they are often not implemented at its best level. and guidance. Pre and Post Challenges 1. dealer initiatives failed because they did not want to share data and did not trust TATA Motors. This sent a clear message to the dealers and helped gain buy-in. even a complicated implementation wouldn’t take long and the Return of investment (ROI) is really great. This enabled them to iron out the problems and create visibility. and the satellite connectivity for the remote sites that cannot get leased lines. and equipment for connectivity. They have a pay-per-use model with dealers based on their turnover. Homegrown applications will often prove expensive.Many people might argue that it is too expensive to implement CRM applications and would instead like to develop their own homegrown custom software application to help Sales. managed the entire program. 2.

And their customer satisfaction index is higher. rather than just implementing technology. 17 . Benefits – TATA Motors has already seen improvements in a number of areas including: • • • • Improved demand forecasting. Once Tata Motors was able to demonstrate to the dealer channel that the new dealer management system represented a business opportunity rather than a cloaked disintermediation exercise. With Siebel analytics in place. Such an effort only works if there are benefits to both sides. as the dealers’ activities were taken into account while planning. and they invested heavily in training and communication for Tata Motors and its dealers. but most important was that it was led by the business with top management commitment. they have complete visibility into the dealer chain and their inventories. planning. logistics management. With a tremendous increase in speed of data flow within the Tata Motors organization.Change ManagementThere were many factors. the benefits began rolling in. This visibility better enables them to respond to demand dynamics. enabling car buyers to manage product configuration and place orders online. TATA Motors intends to create an open portal for customer self-service. and inventory management Overall reduction in quality-related costs due to faster product performance feedback Improved workflow and escalation of customer grievances for faster resolution Increased revenue growth from both higher vehicle sales and a rise in the company's after-sales parts business Ultimately. TATA Motors reengineered their business processes. the visibility into dealer operations helped business planning. Thus the company does have a long term relationship marketing strategy in place which it has only recently started implementing. All this has led to higher revenue and profits.

The dealer management system has meant a gross reduction in the amount of working capital needed to run their businesses. thus increasing customer delight. too. The recent implementation of an SMS capability means that the system directly pings the customer when the job card is closed on the system and his vehicle is ready.The company has seen tremendous increase in productivity. since data does not need to be repeatedly entered into various systems now. 18 . Even the service bays at the workshops have happy stories to tell. All this enables both the company and the dealers to present a common face to the end customer as brothers in arms. With zero waiting times built into the service process. The customer also does not need to give his service history every time he visits as warranty integration and data flow happens automatically. and they are ready for pickup even before the mechanic walks into the stores. For dealers. Tata Motors' dealers are a happy lot. after which scant information was forthcoming). are now completed online and sealed in less than seven days. The company can also now track each vehicle right through its operating lifetime. which earlier took up to 60 days. Simultaneously. and highlighting bottlenecks to optimize the use of service bays. the system generates a dashboard for the workshop supervisor. enabling them to give standardized service to their customers. The system-based job card enables the mechanic to follow a checklist and diagnose faults through a process of elimination of probable causes. slashing diagnosis time. giving it valuable insights on product performance over time (earlier this was limited to the warranty period. Transactions between the company and dealers. The single view of customers and the vehicle greatly increases convenience for all stakeholders. indicating idle capacity and process times. the processes are streamlined. the stores manager uses the system-based job card to assort a basket of the spare parts needed to fix the fault.

How CRM works 1 Click architecture of Oracle CRM on demand Operational CRM -How to get the full address/biodata/relevant information of a customer using 1 click How architecture. 19 .

To know about the customer/ relevant information on the google using Oracle CRM on demand 20 .

business analytics. and streamline dealer-financing processes. call centre. This will allow TATA Motors to better understand customer needs and requirements. Phase 3: This phase will focus on tuning the system and developing value added services for the customers. Also the need to move onto a common platform was to get real-time data on the customer. add support for new products and services. In the first phase the primary requirement of the new system was to have a centralized database. initiate more proactive contacts with customers. which will allow recording customer interaction information available to every dealer to serve the customer better next time.IMPLEMENTATION APPROACH TATA Motors has taken a phased approach in its implementation of the CRM initiatives to ensure success in each phase before moving forward Phase 1: It focuses on capturing customer and vehicle data and routing the processes Phase 2: This phase focuses on leveraging data to improve customer interaction and product development as well as deployment. ISSUESTechnology The company does take customers needs into consideration when selecting and implementing technology. The company plans to deploy marketing. improve its responsiveness to service requests and problem resolution. and captive finance modules. Otherwise the dealer would have to transfer the data to the company which leads to duplication 21 .

which currently has started taking customer feedback on every purchase in real time basis but hasn’t yet reached a stage of dynamic individual customer profiling. Currently they have only finished the knowledge base development phase. They do not continually maintain contact with customers. 22 . they haven’t yet reached a stage where they have complete real time data about sales volume from different customers hence have not been able to differentiate them categorically yet. Thus providing responsiveness to customers but the employee remuneration is not completely related to customer centricity in fact the employees are encouraged to take independent decisions within the guidelines set by the management. Customer Relationships The company is in the initial stage of its CRM implementation. they can fill in any shortfall within a day. They have empowered employees they can access their stock online.Knowledge strategy The company has developed a phased strategy precisely to develop a long-term knowledge base of the customers. They have implemented the Seibel CRM software. The Siebel CRM solution will enable TATA Motors to gather feedback on products to improve design or manufacturing quality as well as measure the effectiveness of marketing campaigns and programmes. Employee Management The company still has a long way to go in connecting the reward system with the customer centricity. The full utilization of the knowledge base will only be possible after third phase but the company does have a knowledge strategy in place. The company as of now only periodically solicits customer input about customer expectations and takes actions to improve the relationship. The company has not yet completely started utilizing this knowledge base and its experience completely to leverage it for customer relationship marketing as the program has just finished its first phase till now.

The company is also involved in accelerating the country’s economic growth and protecting the environment. The continual improvement and introduction of new products in the market have allowed it to successfully enter as well as dominate the automobile industry in India. Tata Group. market expansion. manufacturing facilities and distribution centers along with expansion outside India. his entire history is flashed on screen. Their unrefined use of resources not only leads to wasted investment but can cause annoyance among customers who are either being oversupplied or undersupplied with attention. • Services such as pick and drop. • In CRM. which are common in other companies Tata Motors has proven excellence over the years through its technologically advanced products. should be provided at TATA service station. build stronger customer relations and work with its business partners to provide the best value for money. Tata Motors consistently strives to increase shareholder value. 23 . as the owner of the vehicle and in many cases does not have the record of effective owner of vehicle who was responsible for the purchase decision. the division has built a strong business over the past 60 years and continues to show strong financial results. the company seems to have a promising future. employees. They contact each prospect with the same frequency instead of applying a level of effort consistent with the cost of acquisition and profit potential.CONCLUSION RECOMMENDATIONSMany organizations operating in automobile market still do not differentiate their CRM activities at the segment level. product offerings. Each time a customer approaches a service agent. With increasing sales. • Companies keep the name of financing company. Indian Automobile industry has to learn much from other service industries such as airline industry. on-road service. With the initial financial backing of the giant parent company. • Customer knowledge can be used to give customer specific offer on purchase of second vehicle in family. customer satisfaction and increasing sales.

com/page/CRM+Gadgets http://www.com http://www.oracle.REFERENCES www.aspx?artid=SZAxi/HHEQ4= 24 .com/basics/siebelbasics.html http://wiki.wikipedia.oracle.com/global/in/pressroom/TataMotorsDealerOutlets.siebelguide.oracle.html http://www.com/company/Articles/inside.tata.com/us/corporate/046961 www.

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