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SUMMER TRAINING REPORT

ON THE

A MARKETING STRATEGY OF DISTRIBUTION CHANNEL OF TATA MOTORS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE


AWARE OF THE DEGREE OF BACHELOR OF COMMERCE
(2017-2020)

UNDER THE GUIDANCE: SUBMITTED BY:


DR.PANKAJ KUMAR Varun Aggarwal
FACULTY ENROLLMENT NO:
(Management) 01116788817
BATCH NO. 2017-2020

SIRIFORT INSTITUTE IF MANAGEMENT STUDIES


Plot no.8, institutional area sector- 25, rohini, delhi, 11
DECLARATION:

This is to certify that report entitled “A MARKETING STRATEGY OF DISTRIBUTION


CHANNEL OF TATA MOTORS” which is submitted by me in partial fulfilment of the
requirement for the award of the degree B.COM (HONS.) to GSSIPU university Dwarka,
Delhi comprises only my original work and due acknowledgement has been made in the text
of all other material used.

DATE: NAME OF STUDENT:

--------------------------------
APPROVED BY: NAME OF GUIDE:

--------------------------------------
CERTIFICATE:

This is certifying that report entitled “A MARKETING STRATEGY OF


DISTRIBUTION CHANNEL OF TATA MOTORS” which is submitted by Varun
Aggarwal in partial fulfilment of the requirement for the award of degree B.COM(H) to
GGSIP university, Dwarka, Delhi is a record of the candidate own work carried out by him
under my/our supervision. The matter embodied in this thesis is original and has not been
submitted for the award of any other degree.

DATE: SUPERVISOR SIGNATURE:


ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide MR. SUDEEP NANDY (GENERAL


MANAGER), UNIVERSAL AUTO COMPONENTS PVT. LTD. for his able guidance,
continuous support and cooperation throughout my project, without which the present work
would not have been possible.

I would also like to thank the entire team of UNIVERSAL AUTO


COMPONENTS PVT. LTD., for the constant support and help in the
successful completion of my project.

Also, I am thankful to my faculty guide DR, PANKAJ KUMAR of my


institute, for his continued guidance and invaluable encouragement.
CONTENTS

Declaration

Certificate from Faculty guide

Acknowledgement

Executive Summary

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 Motor‟s 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.
CHAPTER1

INTRODUCTION
1.1OBJECTIVE
1. Creation of Demand:
The marketing management’s first objective is to create demand through various means. A
conscious attempt is made to find out the preferences and tastes of the consumers. Goods and
services are produced to satisfy the needs of the customers. Demand is also created by
informing the customers the utility of various goods and services.

2. Customer Satisfaction:
The marketing manager must study the demands of customers before offering them any
goods or services. Selling the goods or services is not that important as the satisfaction of the
customers’ needs. Modern marketing is customer- oriented. It begins and ends with the
customer.

3. Market Share:
Every business aims at increasing its market share, i.e., the ratio of its sales to the total sales
in the economy. For instance, both Pepsi and Coke compete with each other to increase their
market share. For this, they have adopted innovative advertising, innovative packaging, sales
promotion activities, etc.

4. Generation of Profits:
The marketing department is the only department which generates revenue for the business.
Sufficient profits must be earned as a result of sale of want-satisfying products. If the firm is
not earning profits, it will not be able to survive in the market. Moreover, profits are also
needed for the growth and diversification of the firm.

5. Creation of Goodwill and Public Image:


To build up the public image of a firm over a period is another objective of marketing. The
marketing department provides quality products to customers at reasonable prices and thus
creates its impact on the customers.
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 India‟s 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 1890‟s is the time when Automobile was introduced in India but it came into existence
only after the independence in 1947. Until 1980‟s 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

• Chevrolet Swing, Optra Magnum, Tavera

• Hyundai Accent, Elantra

Rs. 5-10 Lakhs • 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. The Tempo Matador was
the first diesel light commercial vehicle in India.[citation needed] The company started production of the Hanseat
3-Wheelers in collaboration with Vidal & Sohn Tempo Werke Germany in 1958. The word Tempo (a
registered trade mark of Daimler) is now generic for any small goods carrier in India.

A Force Traveller Ambulance, used by Narayana Health


In 1987, Force Motors set up a new plant at Pithampur in Madhya Pradesh, for the production of Tempo
Traveller.[citation needed] This plant was designed and built to the specification of Daimler-Benz.[citation needed]
In 1997, Daimler asked it to set up a dedicated facility for assembling and testing engines for Mercedes
passenger cars to be made in India.[citation needed]
In the year 2003, Force Motors signed technology sourcing agreements with MAN SE for which payments
were made up front. On completion of the localization of the licensed technology and with the request from
MAN, a joint venture was created forming MAN Force Trucks Pvt. Ltd to manufacture the full range of
HCVs from 16t GVW to 49t GCW. MAN proceeded to buy out Force and MAN Trucks India was
established as a separate concern in 2012.[5]
In 2012, Force Motors launched Traveller 26, a monocoque panel van that can seat 26 persons, designed
entirely in-house.[6] It has disk brakes on all four wheels and also comes with safety features like ABS and
EBD.[citation needed]
In 2015, the company was awarded a contract by BMW, resulting in a new facility in Chennai which
produces and test engines and transmissions exclusively for all BMW cars and SUVs made in India. [citation
needed]
This plant can produce up to 20,000 engines per year.
Some cars are as follows:
• Gama Cruiser
• Trax, Toofan, Challenger
• Trax (including Toofan, Cruiser, Cruiser Deluxe)
• Kargo King
• Trax Delivery Van
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.
During the early 1980s Ashok Leyland entered into a collaboration with Japanese
company Hino Motors from whom technology for the H-series engines was sourced. Many
indigenous versions of the H-series engine were developed with 4 and 6 cylinders, and also
conforming to BS2, BS3 & BS4 emission standards in India. These engines proved to be
extremely popular with the customers primarily for their excellent fuel efficiency. Most
current models of Ashok Leyland come with H-series engines. Japan entered into a Mutual
Cooperation Agreement (MCA) on 27 November 2017 renewing their cooperative
agreement that had started in 1986. According to the agreement Ashok Leyland will use
Hino's engine technology for its Euro 6 development and will support in the development
of Hino's engine parts purchasing in India for global operation. [5]
3)HindustanMotors

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. The company began in 1959 as Tractors and Bulldozers Private Ltd and imported
tractors. Manufacturing of tractors began in 1963, in collaboration Motokov-Praha (Zetor) of
Czechoslovakia, and was known as Hindustan Tractors & Bulldozers Ltd.[7] In 1967, it
became Hindustan Tractors Ltd. The tractors were based on the Zetor tractor design and sold under
the Hindustan brand. In 1978, the Gujarat, Indian government formed Gujarat Tractors from the ailing
company. In 1999, Mahindra Tractors purchased 60% of the company, and in 2001, completed purchasing
the rest of the company, renaming it Mahindra Gujarat Tractors Ltd.[8]
In 1982 Hindustan formed a collaboration with Isuzu to assemble and sell the Isuzu F series - JCS trucks in
India. These trucks came from the factory with a fully built modern metal cabin which was not common
with Tata and Ashok Leyland trucks at the time. They were well known for their reliability and fuel
consumption, but were discontinued mainly due to falling sales, poor service facilities, and HML not being
able to sell them for an affordable price.
Hindustan Motors also entered into a technical collaboration to manufacture engines and
transmissions for the Contessa in the late 1980s at a newly constructed state of the art
engine plant at Pithampur near Indore, Madhya Pradesh. The petrol engine commonly
known as Isuzu 1.8 Petrol would later serve in the Hindustan Ambassador with Multi Point
Fuel Injection until 2015. Initially the joint venture produced 4-cylinder G180Z 1.8L
petrol engines and 5-speed transmissions. Later, an 2.0L Isuzu diesel engine was added to
the production line to power the Contessa and the Ambassador. The technical collaboration
lasted from 1983 to 1993. The Indore plant has since expanded to manufacture engines for
a number of other manufacturers like Opel, Ford and Mahindra
• Trekker (Discontinued)
• Landmaster (Discontinued)
• Contessa (Discontinued) - 5th Generation Vauxhall Victor
• Ambassador - a version of the 1950s Morris Oxford
4)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. Mahindra & Mahindra was founded as a steel trading
company on October 2, 1945 in Ludhiana as Mahindra & Muhammed by brothers Kailash Chandra
Mahindra and Jagdish Chandra Mahindra along with Malik Ghulam Muhammad.[6] Anand
Mahindra, the present Chairman of Mahindra Group is the grandson of Jagdish Chandra Mahindra.
After India gained independence and Pakistan was formed, Muhammad emigrated to Pakistan.
Muhammad acquired Pakistani citizenship and settled in Lahore, and in 1948 become Pakistan's
first finance minister. Thereafter, the company changed its name to Mahindra & Mahindra in
1948.[7] It eventually saw a business opportunity in expanding into manufacturing and selling larger
MUVs, starting with the assembly under licence of the Willys Jeep in India. Soon established as
the Jeep manufacturers of India, the company later commenced manufacturing light commercial
vehicles (LCVs) and agricultural tractors.

Mahindra CL 550 MDI, with design licensed from Jeep


Over the past few years, the company has taken interest in new industries and in foreign markets.
They entered the two-wheeler industry by taking over Kinetic Motors in India.[8] M&M also has a
controlling stake in the REVA Electric Car Company[9] and acquired South Korea's SsangYong
Motor Company in 2011.[10] In 2010–11 M&M entered in micro drip irrigation with the takeover of
EPC Industries Ltd in Nashik.
In October 2014, Mahindra and Mahindra acquired a 51% controlling stake in Peugeot
Motocycles and acquired a 100% controlling stake in October 2019. [11]
In December 2015, Mahindra and Mahindra Ltd and affiliate Tech Mahindra Ltd, through a special
purpose vehicle (SPV), have agreed to buy a 76.06% stake in Italian car designer Pininfarina SpA,
for €25.3 million (around Rs.186.7 crore).
In January 2017, Mahindra and Mahindra Ltd (M&M) acquired a 75.1 equity stake in Hisarlar
Makina Sanayi ve Ticaret Anonym Şirketi (Hisarlar), a farm equipment company, marking its entry
into Turkey.
In September 2017 Mahindra and Mahindra Ltd acquired Erkunt Traktor Sanayii AS, a Turkish
tractor maker and its foundry business for ₹800 crore.

• 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.
5) Maruti Suzuki

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. In 1989, the Maruti
1000 was introduced and the 970 cc, three-box was India's first contemporary sedan. By 1991, 65 per cent of
the components, for all vehicles produced, were indigenized. After liberalization of the Indian economy in
1991, Suzuki increased its stake in Maruti to 50 per cent, making the company a 50-50 Joint Venture with
the Government of India the other stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was introduced. Maruti
produced its 1 millionth vehicle since the commencement of production in 1994. Maruti's second plant was
opened with annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road vehicle
service. In 1998, the new Maruti 800 was released, the first change in design since 1986. Zen D, a 1527 cc
diesel hatchback, and Maruti's first diesel vehicle, and a redesigned Omni were introduced. In 1999, the
1.6 litre Maruti Baleno three-box saloon and Wagon R were also launched.
In 2000, Maruti became the first car company in India to launch a Call Center for internal and customer
services. The new Alto model was released. In 2001, Maruti True Value, selling and buying used cars was
launched. In October of the same year the Maruti Versa was launched. In 2002, Esteem Diesel was
introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti
Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to 54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the Wagon R were upgraded
and redesigned. The four millionth Maruti vehicle was built and they entered into a partnership with
the State Bank of India. Maruti Udyog Ltd was Listed on BSE and NSE after a public issue, which was
oversubscribed tenfold. In 2004, the Alto became India's best selling car overtaking the Maruti 800 after
nearly two decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem was re-
launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest
ever since the company began operations and the fiftieth lakh (5 millionth) car rolled out in April 2005. The
1.3 litre Suzuki Swift five-door hatchback was introduced in 2005.

• 800
• Omni
• 1000 (Discontinued)
• Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)
• Alto
• Esteem(Discontinued)
• Baleno - (Discontinued)
• Baleno Altutra - (Discontinued)
Multi-national companies
1) 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
2) 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
3)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.
General Motors
1)Chevrolet:

It 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
2) 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).
3) 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

4) Renault-Nissan
• Logan In partnership with Mahindra and Mahindra
5) MercedesBenz
• 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.
6) Mitsubishi Motors
• Lancer - Sixth Generation Mitsubishi Lancer
• Cedia - Seventh Generation Mitsubishi Lancer
• Pajero - Second Generation Mitsubishi Pajero
• Montero - Third Generation Mitsubishi Pajero
7) Škoda
Škoda 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
8) 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
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 Group‟s 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.
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:
• Company‟s 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 Daewoo‟s (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 rising demand for Ace. The Ace was built
[3]
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 Fiat‟s diesel engine
technology and is likely to gain access to the latter‟s strong overseas distribution network
for its passenger cars. Tata Motors is looking to exted 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 Daewoo‟s design was not in
sync with the needs of sophisticated European customers. The company has formed a joint
venture with Thailand‟s 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.
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
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
TIER I
RESELL E

Distributors

System
Integrators
Own sales force

Value Resellers
Resellers

CUSTOMER
CHANNEL STRUCTURE
Scenario 1 Scenario 2
Company‟s 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 consumer’s
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 consumer’s 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
VALUE Motors
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 doesn‟t 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 consumer‟s
and a retailer‟s 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 software‟s 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
Frequency Percent Valid Percent Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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
company‟s car .

Q 6)
What parameter important for rebuying

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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

Frequency Percent Valid Percent Cumulative Percent

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 décor of the waiting area pleasing

Frequency Percent Valid Percent Cumulative Percent

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


Is the décor of the waiting area pleasing

Frequency Percent Valid Percent Cumulative Percent

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 décor
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

Frequency Percent Valid Percent Cumulative Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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 customer‟s convenience. Customer does not
has to run here and there for getting the financing done. The customers were aware of it.

Autocard

Cumulative
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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


Overall opinion of tata motors

Cumulative
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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
Frequency Percent Valid Percent Percent

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

brand popularity performance looks & style Total

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

What parameter important for rebuying

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.
Sales and Distribution for Tata Motors and Fiat in India

Which of the following best describes your line of work? * What parameter important for rebuying
Crosstabulation

Count

What parameter important for rebuying

post sales maintenance


service mileage cost Total

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
Sales and Distribution for Tata Motors and Fiat in India

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

brand popularity performance looks & style Total

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

What parameter important for rebuying

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

cash cheque finance Total

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

2 3 4 5 Total

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 vehicl
5. CONCLUSION & RECOMMENDATIONS
• Fiat car is preferred more by females rather than males. Business class also has an
inclination towards Fiat more.
• The décor 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 consumer‟s 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.

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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http://www.findarticles.com/particles/mi_momxi/is_4_22/ai_85482104.
[Accessed on 25th March 2006]
➢ http://www.carzone.ie/ [Accessed on 28th March 2006]
➢ http://www.bmwworld.com/bmw/purves.html [Accessed on 26th March 200]
ANNEXURE

Q.1) Which of the following best describes your line of work :


a) Service b) Business c) Student d) Housewife
e) Taxi Services

Q.2) What parameters do you seek in a car before buying


a) Brand Popularity b) Performance c) Looks & Style

Q.3) How long have you been associated with TATA Motors?
a) 0-1 Year b) 1-3 Year c) 3-5 Year d) More than 5 yrs

Q.4) Which company‟s car do you possess?


a) Tata b) Fiat

Q.5) If you need to buy a new or another car, would you again select the Tata or Fiat
Brand?
a) Yes b) No

Q.6) What parameter is important for influencing your re-buying decision?


a) Post Sales services rendered by the company
b) Mileage of the car
c) Maintenance costs incurred

Q.7) How would you rate TATA Motors on the following parameter?

1 2 3 4 5
i) Are the sales person knowledgeable
Do the employees spend enough time with
ii)
you:
Before sales
After sales

iii) Are the spare parts available

Is the Vehicle in good condition at the time


iv)
of delivery

v) Are the prices affordable

vi) Are there any attractive discounts offered

vii) Is the décor of the waiting area pleasing

viii) Were you offered a test drive

ix) Is post sale follow ups done regularly

x) Are the complaints responded quickly

xi) Is the service at Tata Motors excellent

xii) Are all the commitments fulfilled

xiii) Do you find the car value for money

Q.8) What type of payment procedure do you prefer?


a) Cash b) Cheque c) Demand Draft d) Finance

Q.9) Are you aware of the following facilities provided by Tata Motors?
FACILITIES Yes No
i) Tata Motors insurance

ii) Extended warranty


iii) True value
iv) Tata finance
v) Auto card
vi) Genuine accessories

Q.10) What is your overall opinion about Tata Motors?

Very Bad Neither Bad Good Very


Bad nor Good Good
1 2 3 4 5

Q.11) Would you recommend Tata Motors to anybody else?

a) Yes b) No c) Cant say

Gender:
Male Female

Age:
a) Below 18 b) 18-25 c) 26-35 d) 36-50 e)51&above

Income group (in lakhs):


a) Below 3 b) 3-6 c) 6-9 d) 9-12
b) e) Above 12

Name:

Contact no:

Address:

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