As India celebrates its 50 years of independence, the passenger car industry celebrated a centenary of its existence in India in 1998. Despite this head start, the industry has never quite matched up to the performance of its counterparts in other parts of the world. The all-pervasive atmosphere created by the government's license raj was primarily responsible for this situation. The various layers of Acts sheltered the industry from external competition and smothered the development of the Indian automobile industry. Moreover, the industry was considered low priority as cars were considered to be an "unaffordable luxury." Hence in the first part of the project I have taken up the strategic group analysis of TELCO as this is one company whose indigenously manufactured cars like Tata mobile, Indica and Safari have performed well on Indian Roads. In the second part of the project I conducted a study on the consumer perception about small cars. Firstly, I took three brands of small cars; Zen, Indica and Santro for a comparative study of small car segment. Later I went through the process of filling the questionnaires, to know exactly what the customer’s of small cars perceived about their cars. A sample size of sixty respondents was taken. Sample unit was a customer who owned a small car. Secondary data from various sources like magazines, journals etc was also collected. The findings showed that the consumer’s who owned small cars basically wanted good performance, after sales service and a car at their budget, a less expensive one.


All the cars taken for the sample showed that the consumers perceived them as almost same in all the attributes like safety, comfort and luxury. Respondents liked Indica more for its looks, whereas Marti’s after sales service was perceived to be good. But, at the end the research was limited due to small sample size, small sample area and time constraints.


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The data obtained from ministry of commerce and industry. the arrival of new and existing models. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.0 per cent in April-December. the growth rate in 2004-05 was 15.CHAPTER-1 INTRODUCTION 1. the turnover of the automobile industry exceeded Rs. Maruti leads the pack with Dealer networks and workshops across the country. 2006. With investment exceeding Rs. 50.000 crore ( USD 22. The other leading automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry.1 AUTOMOBILE SECTOR IN INDIA Following India's growing openness.06 in automobile production continuing in the first three quarters of the 2005-06. . which was above Rs. 74 billion) in 2005-06. 59. 84.00.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. the automotive industry's turnover. AUTOMOBILE DEALERS NETWORK IN INDIA In terms of Car dealer networks and authorized service stations.000 crore in 2004-05. Annual growth was 16. shows high growth obtained since 2005.1. Including turnover of the auto-component sector.000 crore.518 crore in 2002-03. is estimated to have exceeded Rs.

Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd.ahalf times the export figure for 2001-02. After a temporary slump during 1998.1.3 million in 2005-06. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector.99 to 7. The production of total vehicles increased from 4. General Motors India Ford India Ltd.99 and 1999-00. 7 .2 million in 1998.2 MAJOR MANUFACTURERS IN AUTOMOBILE INDUSTRY • • • • • • • • • • • • • • Maruti Udyog Ltd. such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector.

is the country’s first indigenously designed. including the Safari. an Euro 2 compliant vehicle. Sumo and Sierra. Germany. originally for the manufacture of Steam Locomotives at Jamshedpur. Tata motors had become an independent producer of Medium Commercial Vehicles with a great degree of indigenization. Australia. testing and manufacturing such vehicles. Africa. By the time their collaboration ended in 1969. 1945. the company had diversified into the manufacture of commercial vehicles in collaboration with Daimler Benz. . a sedan that was launched in December 2002. Latin America and Europe.CHAPTER-2 COMPANY PROFILE Tata motors one of India's largest private sector companies with a turnover of over Rs 80 billion. Asia. Tata Motors followed that up with the Tata Indigo. By 1954. is the country's leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments. The widely successful Tata Indica. developed and manufactured passenger car. It had also developed the capability of designing. The company also makes several other passengers vehicles. The company’s products have received wide acceptance not only in India but also in the Middle East. Tata motors were established on September 1.

0 to one US dollar. they were Rs.6 million). Collaborations The company has technical tie-ups with: • The Institute of Development in Automotive Engineering (IDEA).64 billion (US $ 1. for the development of diesel and petrol engines for passenger cars.73 billion). 89. In the year ending March 2001.09 billion (US $ 129.} In the year ended 31 March 2001.A. In 2000. 81.61 billion. 9 .5 million) in the previous year. heavy and light commercial vehicles..9 billion) {The average exchange rate has been taken as Rs 47. Pimpri and Chinchwad near Pune in Maharashtra. and • Le Moteur Moderne.22 billion (US $ 153. for assistance in small car body design and styling.1 Areas of business The company manufactures medium. Italy. France. Locations The company’s manufacturing plants in India are at Jamshedpur. Land has been acquired at Dharwad (Karnataka) to build a fifth plant. the company’s total exports were worth about Rs 7. and Lucknow in Uttar Pradesh.P. (US $ 1. multi-utility vehicles and passenger cars. against about Rs 6. S.2. the company’s revenues from its four manufacturing plants at three locations in India were Rs.

• Sheba Properties Ltd: It is an investment and finance company and a wholly-owned subsidiary of Tata Motors since its inception.: It oversees the IT requirements of Tata Motors and provides services for SAP implementation. It supplies axles and their parts to Tata Motors against purchase orders raised by Tata Motors on HVAL. 1972 and is currently engaged in the business of automobile sales and services. (TDDL): It is an investment and finance company and proposes to undertake activities pertaining to the sales and service of Tata Motors’s vehicles and spare parts.: It was incorporated on March 13.. • HV Axles Ltd. . • HV Transmissions Ltd. CAD/CAM-based design. It supplies transmissions and their parts to Tata Motors against purchase orders raised by Tata Motors on HVTL. material handling and earthmoving equipment.Subsidiaries • Tata Construction Equipment Company Ltd.: Formerly known as Mazda Industrial Chemicals Ltd. • Minicar (India) Ltd. • Tata Technologies Ltd. • Telco Dadajee Dhakjee Ltd. 2000 with the objective of acquiring the Heavy-Duty Axle Division of Tata Motors at Jamshedpur as a going concern. 2000 with the objective of acquiring the Heavy-Duty Gear Box Division of Tata Motors at Jamshedpur as a going concern. (TELCON): Its principal business is manufacture and sale of construction. and e-commerce facilities to customers in India and abroad.: It was incorporated on March 13. this company was incorporated on January 18. It is registered with RBI as a Non Banking Finance company.

These include: • Tata Cummins Ltd.. a joint-venture with Holset Engineering Company. 2000 with the objective of acquiring the Machine Tool and Growth Divisions of Tata Motors as a going concern. • Tata Motors Services Ltd... Strategic alliances Tata Motors has several joint ventures and alliances. • Concorde Motors Ltd. Bangalore. Hyderabad. a joint-venture with Cummins Engine Company Inc.. Tata Motors sources factory automation equipment from TAL. makes turbochargers for diesel engines manufactured by Tata Cummins Ltd. As and when required. makes fuel-efficient. 2000. for the sale of spare parts for Tata 11 . Concorde has dealerships for Tata Motors passenger vehicles in Delhi. Singapore. • Tata Precision Industries Pvt. Singapore. Ltd. Chennai and Lucknow. a joint venture with Jardine International Motors (Mauritius) for dealerships of passenger vehicles. UK.. for the manufacture and sale of high precision toolings as well as electronic and plastic components for the computer industry. Ludhiana. 1994 and became a wholly owned subsidiary of Tata Technologies Limited on December 22.: It was incorporated on March 13. Mumbai. USA: It was incorporated on August22. environment-friendly diesel engines. USA. and other OEMs. • Tata Holset Ltd. low emission. The company is engaged in the business of computer consultancy and related services.• Telco Automation Ltd.. • Tata Technologies.

. Bangladesh.vehicles. and • Nita Company Ltd.2 SWOT ANALYSIS Tata Motors is highest selling car company in India and is the four wheeler manufacturer in the world. 2. WEAKNESS Major weakness of Tata are 1Not a strong player in the rural market 2Very few models at the lineup stage 3R& d of Tata Motors is weak 4Not a Strong Player in the Premium Market . As the case is every company has it strengths and weaknesses and Tata Motors is no Exception: - STRENGTHS 1Market Leader in terms of sales and turnover 2A wide network of dealers across the nation 3A wide network of authorized service stations at different parts of the country 4A wide variety of product portfolio 5Very strong brand image of making fuel efficient and reliable cars 6High product and brand recall among the customers infect Tata is the first choice among the majority customers. for the assembly and sale of Tata commercial vehicles.

5It’s a non player in scooter market which is huge even though that industry is going through a rough pace OPPORTUNITIES 1)It’s a growing market thus company has high growth potential in future 2)Premium segment is still not fully exploited with right product Tata Motors can do wonders 3)Neighboring countries markets are not exploited fully 4)Need to tap African and European market. THREATS 1)Entry of new players 2)New companies entering in the car market will pose a considerable threat 3)Competitors becoming aggressive with new product launches and high marketing pitch 4)Aggressive Maruti and Hyundai posses another threat 5)NO tie up with any other company can lead to losses 13 .

manufacture of critical components and the final vehicle assembly. Tata Motors . the Tata Indica. Setting standards of corporate governance.LITERATURE REVIEW TELCO: Currently the largest automobile company in India. With benchmarking systems to sell world-class products and services. launched in 1998. It went on to set a benchmark in terms of its value proposition in terms of best value for money in its segment and internal spaciousness. Clearly identifying the core areas as R&D. The overwhelming customer response that the Indica generated at its launch in early 1999 has translated into its capturing more than 17% of the premium small car segment. the Tata Safari. Tata Motors ranks among the top 10 commercial vehicle producers in the world. and 8 % of the entire passenger car market in India within a year. Tata Motors focuses on Complete Customer Satisfaction. The insights gained into customer needs in these markets led to the development of another world-class Sports Utility Vehicle. Tata Motors made an aggressive foray into the mainline passenger car market with its small car. The transition of Tata Motors from being a predominantly commercial vehicle manufacturer to a complete automobile company began in the early 1990's with the launch of the first Sports Utility vehicle from Tata. The Indica fulfills the Tata Group Chairman Ratan N Tata's vision of developing and manufacturing a truly Indian car that would use modern technology and contemporary styling of the small car genre.the Sierra and later the Tata Estate. Soon after launching the Safari. the company continues to be open to global alliances to effectively enhance its competitiveness in the fast globalizing Indian markets.

Business Models TELCO is primarily a Business-to-Consumer Company (B2C). though at a much lower scale. heavy and light commercial vehicles. Its major product line can be basically classified into three broad categories. multi utility vehicles and passenger cars. Energy. Business TELCO is into the business of manufacturing and selling medium.continues to uphold the trust of its various stakeholders. 15 .Passenger Cars 2. TELCO is Tata’s flagship company in the Engineering sector. It also practices the Business-to-Business (B2B) Model. viz. Business Sector The Tata Group runs businesses in seven key industrial sectors. employees and business associate. Engineering. Chemicals. Communications and Information Systems. Materials. customers. Consumer Products. There are various sub-brands and products in these categories: 1. and Services. namely.Commercial Vehicles TELCO currently has three products in its Passenger Car division namely. shareholders.Utility Vehicles 3. serving various needs of a number of its customers.

Tata Safari It is in the process of coming out with another member in the passenger car family. which would be . Tata Indigo c. the all-new Indica Sedan. set out to storm the Indian Mid-Size Passenger car segment.a. Tata Indica b.

a.Telco Sport c. single & crew cabs etc. TELCO currently has three products in its Multi-Utility vehicle division namely.launched in the last quarter of 2002. and the various uses that they can be put at. a.Tata Sumo b. Buses Small Buses Big Buses (4 models) (4 models) 17 . It has a large number of products in this segments classified as various types namely. TELCO is the undisputed leader as regards the Commercial Vehicle segment. pick-up vehicles and so many more uses. reliability. 2-wheel and 4-wheel drives etc. especially on the highways and in the rural areas. They are used as people carriers. The utility pick-up vans of Tata International are made for all kind of terrains and are facilitated with features like 2 & 4 wheel drive. goods carriers. as emergency vans. Confirming to International standards all these vehicles are available with various features such as petrol & diesel versions.Telco line Pickup Vans All these vehicles come only in diesel-engine versions and are quite popular on the Indian roads. ruggedness. They are known for their build quality.

b.Tippers d.Trucks Light Trucks (5 models) Medium/Heavy Trucks (9 models) (3 models) (3 models) c.Tractors .

to which the group brings a unique set of capabilities. This requires aggressive growth in its focused areas of business.3 STRATEGIC GROUP MAPS INTERNAL ANALYSIS The basic premise is the Customer.2. employees. 5 Core Values The Tata Group has always sought to be a value-driven organization. So whenever a new product development plan comes into picture. Telco’s corporate purpose is to improve the quality of life of the communities that it serves. shareholders and the community. STRATEGIC INTENT Leadership with Trust Purpose Being a part of the Tata Group. These values continue to direct the group's growth and businesses. The Tata Group’s heritage of returning to society what it earns evokes trust among consumers. through leadership in sectors of national economic significance. And the way we define value. Leveraging this asset to enhance group synergy and becoming globally competitive is the route to its sustained growth and long-term success. the idea is to look for ways to offer the customer the best value for his money. the word covers all the possible and not so possible ways to customer satisfaction. The five core Tata values underpinning the way it does 19 . Formalizing the high standards of behavior expected from employees and companies continuously enriches this heritage. The Tata name is a unique asset representing leadership with trust.

4Unity . 5Responsibility . 3Excellence .we must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide. Everything we do must stand the test of public scrutiny. communities and environments in which we work.we must be caring.business are: 1Integrity . . 2Understanding . with honesty and transparency. compassion and humanity for our colleagues and customers around the world and always work for the benefit of India. understanding and mutual cooperation. sensitive to the countries. show respect. building strong relationships based on tolerance.we must work cohesively with our colleagues across the group and with our customers and partners around the world. always ensuring that what comes from the people goes back to the people many times over.we must continue to be responsible.we must conduct our business fairly.

has 20 stations with a vehicle rolling out every 8 minutes while the other line is dedicated to Special Purpose Vehicles (SPVs). assembly and quality control. This focus has driven the company to set up world-class manufacturing units with state-of-the-art technology. Engine (including the Gear Box division) and Axle. Jamshedpur: This was the first unit of the company established in 1945 and is spread over a area of 822 acres. better and highly automated foundries in the world. State-of-the-art facilities like a Centralized Paint and Press Shop with a set-up of a 5000 tonne Siempelkamp press line and a cut-to-length line for strip preparation purchased from M/s. The divestments in March 2000 hived off the Axle and Engine plants into independent subsidiaries. the Foundry was ISO 9002 certified by the Bureau Veritas Quality International and later followed it up with the more stringent QS 9000 certification from the BVQI in the year 2000.Truck. This is supported by a fully equipped Foundry which supplies high-grade SG Iron castings for automobile components and excavators and is rated as one of the cleaner. Other advanced facilities include Channel Furnaces. manufacturing. development. Computerized Testing Equipment etc. The Foundry has a sophisticated Kunkel Wagner high pressure moulding line. Its manufacturing plants are situated at Jamshedpur in the East. The Truck Division boasts of two assembly lines. measuring 180 metres in length. The Foundry has its own melting shop.design. is carried out meticulously. Kohler of Germany makes it a fairly advanced production outfit.2. The main assembly line.4 MANUFACTURING UNITS OF TELCO Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. core shop and sand plant. Pune in the West and Lucknow in the North. 21 . which has a rated production capacity of 90 pairs of moulds every hour. Every stage of product evolution . In 1993. It consists of 3 divisions .

multi-utility vehicles and one for Passenger Cars (Indica). fixtures and welding equipment. with 40. this division has developed expertise in design and manufacture of automated dies. It is engaged in the design and manufacture of sophisticated press tools. The new forging line. The Forge has been certified as ISO 9002 and QS 9000 by the BVQI. The sophisticated FIDIA Digit 165 CC graphite milling machine links shop floor machines to the design workstation. plastic template shop. Its capabilities have enabled Tata Motors to introduce new products and improve existing ones without resorting to imports of dies or fixtures. which has one of the most versatile tools making facilities in the Indian sub-continent. five axis precision machine tools and laser control machines. LCVs. as well as models for the development of new ranges of automobile products. front axle beams and steering parts for the automobile plant. Over the years.000 mkg Beche hammer and state-of-the art presses from Kurimoto of Japan and is one of the most modern forging setups in the country. fixtures. Mechanical presses help produce a variety of heavy forging. jigs boring room. Its large design group is fully conversant with state-of-theart CAD facilities and manufacturing facilities comprising of light and heavy CNC machine shops. Pune: The Pune unit is spread over 2 geographical regions Pimpri and Chinchwad and has a combined area of around 510 acres. It produces critical forging like crankshafts. four assembly lines have been established. has the capability to forge front axle beams at 90 sec per piece and crankshafts at 120 sec per piece. It was established in 1966 and has a Production Engineering Division. jigs. 1984. metal pattern and special tools. one each for MCVs and HCVs. To cope with such a diverse range. It houses a Vehicle manufacturing complex which is one of the most integrated automotive manufacturing centers in the country producing a large variety of individual items and aggregates. gauges. .The unit is also equipped with a semi-automated forging line. installed on April 20. wood pattern and model pattern shop.

the engine shop. timers that are used in Tata Motors vehicles. Subsequently. The Iron Foundry produces 16. the unit started manufacturing bus chassis of Light Commercial Vehicles (LCVs) and SUMO's. G-16 and G-18 Gear Parts were added in 1998.000 tonnes of high precision castings per year with the help of 450 employees. However. The Electronics Division is engaged in the production of a wide variety of Machine Tool Controllers. PLCs. Servomotors. an Aluminium Foundry with an annual capacity of 700 tonnes has also been established. it was primarily started to assemble Medium Commercial Vehicles (MCVs) to meet the demand in the Northern Indian market. Cylinder Heads. All systems such as materials management. The shops are fully automated ensuring that there is minimal chance for error in the manufacturing processes. Established in 1991 and covering an area of 600 acres. it goes through several checks like wheel alignment. side slip test. press and body shops. and Test rig instrumentation. maintenance and other activities are computerized. Industry experts rate the fully automated Foundry at Chinchwad among the best. In addition.The Passenger Car Division in 'K' block executes the entire process of car manufacture over five shops . brake test. the transmission shop. it has developed a number of components such as flashers. Lucknow: Lucknow Plant is the latest in Tata Motors 's manufacturing facilities. enabling smooth operations and minimum inventory needs. Gear Box Housing. After the car is completely assembled. worldwide. These include Cylinder Blocks. horns. in 1995. To dispense with the need for outsourcing. The plant started to assemble G -16 Gearboxes in 2000 to 23 . paint shop and the trim and final assembly shop. The unit is equipped with facilities to manufacture spare parts. Proximity Switches. and a short test run before it is ready for dispatch. shower test. etc.

the economy segment accounts for the largest share of the cars sold.meet the in-house requirement for SUMO vehicles. disposable income was perceived as the one critical factor that drove passenger car demand. Ambassador. as compared to mid-range segment in the mature markets. household income is no longer the single most important factor in determining the demand for vehicles. Fiat Palio Esteem.) 225-350 Models Maruti 800. Zen. Ford Escort. Ford Ikon. Rover Montego. The economy and the premium segment face the lowest competitive threats. Hyundai Accent Luxury > 1. Mid-range Premium 350-450 450 .1. Premier. Opel Astra.000 Uno. Hyundai Santro. while the premium segment will witness intense competition due to lower volumes.5 PASSENGER CARS SEGMENTATION The segmentation of the passenger car market in India is vastly different from that in the developed nations. Other critical factors are the mobility needs of people and . In India. Mitsubishi Lancer. Mercedes benz Key Demand Drivers Traditionally. Maruti Omni.000 Opel Vectra. 2. Segment-Wise Classification of the Indian Car Market Segment Range Economy Price ('000 Rs. However.

more so in the rural areas. or the rate of interest on a loan to buy a car. The development of the used car market will also play a major role.500-crore small cars market seem to believe so. Third is the price of maintenance. to improve the road infrastructure. Morgan Stanley. as the customers will be encouraged to trade in their old cars. with a huge base and a narrow apex”. These findings have revolutionary implications for the passenger car market. Everything else remaining constant. 7. “Price is the most important ‘P’ in this market because it is pyramidal in structure. and to reformulate fuels and lubricants so as to reduce vehicleoperating costs. The number of high-income households is growing very rapidly.middle. The second is the price of finance. 25 . And the only warhead is price. The top three income groups . mangles margins. and service are secondary. seemed to matter was the second in the Product-Price-Promotion-Place marketing-mix. suddenly. technology. But it is the Unique Selling Price the only road to success in the intensely competitive automobiles business? Those in the race for winning over the Rs. features. the only ‘P’ that. nothing is more dangerous than using money as the magnet for attracting customsers.the availability of cheap finance. It kills loyalty. and high have grown from 10% in 1986 to 17% of the population and covers over 52 million families. and encourages defections. upper middle. The first is the price of acquisition. According to the Research Analyst. Price. the purchase decision of the first-time buyer is influenced by the 4 factors: Price. In the small car segment. PRICING In any business. The key to the growth of future markets is to make maintenance-free vehicles. Evidently. Price and Price.

And the fourth is the price of disposal. The less the stretch. even a drop of Rs. service. stretching his budget to buy personal transportation. Attempting to sell the lowest priced car in every segment will not enable a company to survive. say. not every company plays the price-card. a two-wheeler. Applied as a brand-level strategy. Which is. Once incomes start rising again. However. Sure. Go beyond the entry level – and the price-value equation will kick in immediately. the more is the likelihood of actually buying a car instead of. Only if all other things are perceived to be equal between competing brands will price be a decider. So. However. price will become less important. only the lowest priced player will milk this segment. Instead of cutting the price of Santro. there will emerge increasing numbers of upgrades as well as first-time buyers who will not necessarily start at the lowest price-level. It also believes that when features are the USP.1000 in the small cars segment could expand its size. in effect. Thus. and product-plus features like better service and customer-care. the less is the purchaser’s incentive to opt for it. or the re-sale value of the car. And obviously. Hyundai arrived at the pricing strategy after a careful analysis. Strategic price marketing is a corporate weapon that must be applied in the context of an entire portfolio of cars. and spare parts. the lower price will be an attraction to the first-time buyer who is. The typical Indian car-buyer is obsessed with post-purchase pricing. essentially. Hyundai Motors has launched an enhanced version with product fearures like power steering. the lower the selling price of a second hand model. price may help the auto-marketers win over only the entry-level customer. the cost of maintenance and the possible re-sale value.which includes the cost of fuel. second P Marketing cannot help reinforce that position. The rest of the low-price aspirants will have to offer additional features as value to convince the budget-buyer to spend . It does not believe in knee-jerk reactions to rival moves.

Thus price can be a selling proposition for only one segment of customers.more. 27 . The threat. who progressively move up its product ladder. leading the charge through price may have a better pay-off. As a corporate strategy. A low –priced product will enable new entrants to gain entry into the consumer’s garage. however. cannot rely on price alone for success. But a company that seeks life-long customers. is that of a dangerous dilution of image.

CHAPTER – 3 OBJECTIVES OF THE RESEARCH 1. a. To judge the awareness level of small cars. . Examine the psychographics of small size car customers. To probe the buying behavior of car owners. 3. To find people expectations or satisfaction regarding the small cars. 2.

3. 6. measurement and analysis of date.CHAPTER-4 RESEARCH METHODOLOGY A research design is the arrangement of condition for collection and analysis of data in a manner that to. 5. 7. 4. Research Design is needed because it facilitates the smooth sailing of various research operations. effort and money.The design helps researcher to organize his ideas whereby it will be possible for him to look for flaws and inadequacies. Research Design stands for advance planning of methods to be used for collecting relevant data and techniques to be used in the analysis .1 RESEARCH DESIGN Following questions have to be asked in Research Design 1. 4. What is the study about? 2. It constitutes the blue print of collection. Research Design is conceptual structure within which research is conducted. combine relevance to research purpose with economy in procedure. What technique of data collection ill be used? 29 . thereby making research as efficient as possible yielding maximum information with minimum time. Why is the study being made? Where will the study be carried on? What type of data is required? Where can data be found? What periods of time will the study includes? What will be the sample design? 8.

The data collection form was designed in the form of a standard questionnaire because it is more reliable than unstructured format. Since a part of the research aims at finding the attitude of people towards the different brands of cars.9.2 secondary data: The major aim of the project was to analyze the Strategies of TELCO and to study the consumerbuying behavior for small car customers. For the first part secondary data was collected from various sources that included website of TELCO and trade journal that were collected from TELCO’s Delhi Office.e. . a conclusive research was conducted. By reducing the chance or the sample to influence results through different questions and through different judgment of answers and what to record. if the research project is repeated in the same manner. the structured questionnaire produces more reliable results i. similar results will be obtained. How will data be analyzed? 4.

Some questions are designed for the purpose of cross checking the sample genuineness in filling the questionnaire. 31 . the relative efficiency of alternate sampling techniques in a given situation.) 4. Probability sampling method is those in which every item in the universe has a known chance of being chosen in the sample. Selecting the sample: for this project. the universe consists of people of Delhi who own small car. For this. The probability sampling is preferred because: ∗It is the only sampling method that provides essentially unbiased estimates having measurable precision. a probability sampling method is used. The probability sampling permits the researchers to evaluate in quantitative terms. ranking scale is used to rank the preferences of attributes of the customers. For the purpose of analysis.3 Universe: The universe is entire group of items the researchers wish to study and about which they plan to generalize. to know consumers general views. If the investigator requires this level of objectivity. This scale is used because it permits the development of descriptive profiles that facilitates the comparison of competitive items. (Semantic differential scale is used to understand the images of brands of cars as perceived by the consumers. then some variant of probability sampling is essential. Usually this is not possible in non-probability sampling. Here the sample size consists of 60 residents of Delhi.Most of the questions asked in the questionnaire were closed ended with a few open-ended questions also.

we shall be briefly looking at the factors influencing its external environment. Utility vehicle division and the Commercial vehicle division. namely Maruti Suzuki.I. Here. innovative and much better products and processes. which is seeing a lot of activity in the current period. and other such advantages. S. And this activity is all set to intensify with the launch of the all-new TATA Sedan in the later half of the current year.M. Small Car segment (B segment) . TELCO currently has two products in the passenger car segment. Daewoo and Toyota. It faces direct competition from almost all the major automobile players in the passenger segment. (Society of Indian Automobile Manufacturers) has classified the Passenger Car segment in India into further sub segments on the basis of their length. user-friendly and economical products providing maximum value to customers. the Passenger Car division is the area. its competitors and the kind of competition it faces. Newer and better technology.A. Out of its three business segments namely. 1.CHAPTER-5 FINDINGS AND ANALYSIS EXTERNAL ANALYSIS The main purpose of this section is to have an insight into TELCO’s external environment. it brings the best out of an industry. all arise out of competition.the Indica and the Safari. Competition Competition leads to improvement on all fronts. the Passenger Car division. Hyundai. If healthy. Fiat. TELCO faces stiff competition in almost all its business segments but has emerged as the winner when it comes to market success.

and one offering in the Sports Utility Vehicle segment . Premium Mid Size segment 4.2. And if the success of the Indica and the Safari is to be believed. truly fulfilling its promise of More Car Per Car. The Magna shall be launched some time during the later half of next year in 2003. for the year 2002 had promised a product of great pedigree. TELCO currently is tight-lipped about the Magna and has divulged no details regarding the car but according to group Chairman Mr.The Indica. Ratan Tata.The Safari. and the Matiz from Daewoo. It has earned a lot of respect among all the small car manufacturers because of its quality and value delivered to the customer. TELCO also has plans to introduce another offering in the Luxury car segment code-named ‘Magna’. the Palio and Uno from Fiat.000 or 30. If Telco can find markets to sell 20. which has met with huge success in the recent months. Entry-level Mid Size segment (lower C segment) 3. Luxury Segment (upper C segment) (D segment) TELCO currently has one offering in the Small Car segment. the Magna shall be TELCO’s answer to the Luxury Segment in India. then they are looking at a 33 . CORE COMPETENCIES The Core Competencies of is there capability to make the Indica globally competitive in terms of cost. TELCO has redefined the rules of the game by launching the all-new Indica V2. and the Indica V2 has just delivered that.000 more Indica’s. christened the TATA Sedan shall compete in the entry-level Mid-Size Car segment. these words are sure to see light in the near future. TELCO. the Santro from Hyundai. The Indica comes in both diesel and petrol variants. Alto and Wagon-R from Maruti Udyog. which shall force the competitors to revamp their strategies. The proposed offering. The Indica is directly pitted against the Zen.

It also has a World-Class dealer base and alliances with these suppliers. Though its efforts towards Total Quality Management seem to be helping the company. you survive. Telco has a design and engineering capabilities that are unmatched by its competitors in the Indian market and the company also possesses an unmatched ability to create and integrate it. For that to happen. The United States and Japan. the niche may be the lower end car. But you need volumes and that kind of scale and production processes that will give you those advantages. you’re looking at very reasonable numbers. The unfortunate part is that the lower end market does not offer much by way of margins. That is what Telco has to look for and there they can even stand on their own if they find markets beyond the shores of India. Smaller auto companies (globally) will have to look for market niche’s to operate. This gives it the capability to compete with firms in the world market. In the case of Tata Motors. this ensures the right Inputs for the company and also helps to manage the Just in Time systems.very interesting set of numbers. . All that would come from having a niche product that is globally competitive But there is still a long way to go before the company is able to make a mark in the world market and compete with the world’s leading companies in well-developed markets like Europe. invest in technologies required to give that one platform all the variants and changes that you need. it will take a more focussed approach from the company towards quality and developing R&D and experience in such project. If you add variants to those numbers. And if you focus on that niche. Then you are in the niche.

4. Most of this would come 35 .Managing Cost It is becoming more and more important for companies to achieve competitive costs. it is very important to have high standards in quality.1 KEY FACTORS FOR SUCCESS Having the right resources is very important for a company to succeed in any industry. the company is planning to continue with is cost reduction program. it is very important for a company to have High quality human resources 3. 2.High and Standard Quality For industries like Telco which manufacture equipment's that serve the infrastructure industry.R&D and Knowledge The technological changes as per WTO specifications and Euro Emission norms need to be followed for a company like Telco to sustain growth and Telco has been able to achieve all this in all its products and services. The resources which are most vital for success in an industry are called ‘Key factors for success in an industry’.High Quality Management The LCV & M&HCV segment are highly complicated sectors. the management not only have to manage all the resources available to the company properly.5. the key factors for the industries that Telco Operates in are: 1. Human Resource Industries like Telco have a high human element. but also have to be highly professional in their approach.

for E. The company takes great care to ensure that it has a good supply of HR. which is very important in a knowledge-based industry. It has a great R&D base. the revival of Indica is a success story.from reducing fixed costs. operational efficiency an outsourcing. And it has great experience in projects with high levels of sophistication. But the Core Values like management capabilities are shared by the entire organization. 3. Some of the major resources that Telco has are 1. the values and efforts to ensure good Human Resources are shared by the HR departments of each SBU.R&D and Know-how The company is known for its high level of sophistication when it comes to technology. many of the resources are common for all the industries. The management of each SBU has a strong work ethic with an aggressive approach to managing the company. 4.High Quality . 2. it invests a high amount every year (compared to the average spent in the industry) on it for each department. its in all its business are a people oriented operation.Management The management of the company has gained the reputation of being one of the most professionally managed companies in India.g. The R&D departments of each SBU have helped each other.Human Resource Telco possesses a great Human Resource base. RESOURCES The resources of the company are similar for all the industries.

LCV. This aspect not only allows the company to it to deliver tailor made products for other divisions in the company. And in the future the company wants to have synergy in all its activities to be highly successful. this is due not only because of the value chain. For E. but also because the R&D from one division helps in the others. SYNERGY The activities of the company give synergy to the company as a whole.The company has extremely high standards in quality. but all the vehicles have been the leaders in their own segment. VALUE CHAIN A large number of Telco's operations are different activities on the value chain for E. 37 . And the company is able to achieve lower costs than its competitors by procuring facilities from other departments within the company. Thus it is clear that Telco has most of the resources that companies require to be successful in the industries it operates in. the R&D from the Engineering division helps the Production division. Cost is the only resource that sometimes hampers its progress. HCV or others are used in different sectors. but also gives some divisions of the company a lot of business. thus giving it an edge over the competition.. Utility Vehicles. almost all Strategic Business Units are technology leaders in their field of operation.g.g.

The implementation of infrastructure projects will have a positive impact on demand of CV’s and MUV’s as they are extensively used in transportation of material and people requirement of projects. Economic The availability of freight depends on the economic activity in the country.5. Though oil prices have gone up but the shift in the oil sector companies towards a positive pricing strategy will not affect Telco’s business plans & performance. The decision of the government to ban diesel buses and give licenses to CNG buses has been a boon for TELCO as it is the major supplier of buses to all State Transport Corporations. Socio-Cultural .IDENTIFICATION OF CHANGE DRIVERS The PEST analysis for Tata Motors and Locomotive Company Ltd. (TELCO): Political The political environment has been highly unstable over the past few years. The improvement in freight rates consistently over this period will add to business of TELCO. but recently it has settled down somewhat. Though only few state governments are stern in implementing this order but TELCO will remain one of the major suppliers of buses and hence can plan expansion. The company has also garnered a 9% market share in the passenger car industry in a very short span. As we know that Telco is the leader in the commercial vehicle segment with 54% market share in Light Commercial Vehicle (LCV) and 63% market share in Medium & Heavy Commercial (M & HCV). Telco has a market share of 221% in utility vehicle segment. The freight rates determine the revenue component of fleet owners. Therefore an increase in economic activity broadly represented by growth in GDP helps in increasing the freight availability. The GOI policy towards depreciation norms and excise duty etc will have a bearing demand for MUV’s and CV’s.2 PEST ANALYSIS.

In order to boost sales passenger car companies often look for a general upbeat environment. Thus socio-cultural factors do not affect the Engineering business too much. and a Fur Tonnes LCV fitted with an internally developed Turbo charged Engine. a Cost Effective 11 Tonnes Vehicle in both bus and truck version to meet the growing demand in this segment. The sales during festival times perk up because the environment all round is joyous and upbeat. Technological The Company vigorously pursued a programme of product innovation in commercial vehicle with a view to regaining and improving its market share. Though the metropolitans have become over-crowded and but Telco’s Indica V2 sales have picked up. Fuel Efficient M&HCV Truck and Busses Powered by Company’s Euro 1 Compliant 697 Engines. Another effect is because of is that of good monsoons which translates into a higher rural demand especially for the MUV’s. it does have an impact indirectly. 39 . The company had already added to its range Euro 1 Compliant Cummins Engine Powered Vehicle with a view to regaining and improving its market share. Major innovation in the current year include a 25 Tonnes Truck and a30 Tonne Tractor Trailer.

it was the first major restructuring the Tata group had undertaken. The company developed the Tata Business Excellence Model to measure the quality and corporate performance of our companies. which entailed the compliance with the quality standards and business ethics that we codified at that time. and in turn integrate the 7S. These strategies have to be aligned with the following elements. The group companies were required to sign an agreement to use the Tata brand.3 STRATEGY IMPLEMENT SEVEN S FRAMEWORK The Boston Consultancy Group in the 1970s developed the ‘Seven S Framework’. For the success of an organization the Seven S cannot work in isolation. i. The group developed a common corporate identity for all group companies leveraging the strengths of the Tata brand. To implement the framework the company should consider the following aspectsSTRATEGY The strategies that the company needs to employ have been discussed in the previous section. these 7S are inter-related and inter-dependent. For the Strategies to work at Telco. STRUCTURE When the company undertook the restructuring exercise. . it is important that the company employs the framework. It was designed to build a cohesive strategy. Operational and International Levels. The first phase of restructuring required some basic foundation building. and required them to achieve the specified level of performance in order to continue the Tata Brand. different for Corporate.e.5. Business. they have to be brought together. The strategies differ on the various levels.

and the executive committee of each board reviews the operations and the budget of the company. The company is at present on the look out for suitable alliances with international majors. The BRCS reviews the strategic direction of each company. the group created a central group. Its primary task was to look at the strategic direction of each of our companies. To oversee the entire restructuring exercise. The company has set up an independent retailing network for cars and also for other utility vehicles. which constituted the formal interface between the group and the holding company. The strength of dealership for these now stands at 118. from employee training and hiring to transportation. Towards this. or three. as industry leadership in terms of being number one. Telco has also decided to restructure its operations by reducing its level of vertical integration. The net result of all these initiatives has been that Telco now operates more as a group than what they did in the past. The GEO as mentioned above has put in place certain important hooks such as a central HR and central financial coordination with a view to standardize the MIS systems of Telco for financial reporting to the holding company. two. the company has decided to hive off three of its ancillary divisions in Pune and Jamshedpur. Ultimately. SYSTEMS Systems are the procedures that make the organization follow for everything from top-level decision making to board meetings. the GEO takes a view on the figment of companies within our group. which they called the Group Executive Office (GEO). in the process of which it set some tasks for our company in terms of bottomline and top-line growth based on historical growth trends. but what this really meant was that each 41 .The company instituted the business review committees (BRCS). All the company’s activities should have a particular system particular to the company.

which constituted the formal interface between the group and the holding company. and then made it to the top of the company SKILLS This aspect considers the fact that every organization needs certain skills for its success. STAFF This aspect concerns itself with the pool of people who need to be developed. Telco takes a lot of efforts to ensure the best trainee level talent. As mentioned above the company instituted the business review committees (BRCS).company had the stamp of its own CEO and went its own way. and the executive committee of each board reviews the operations and the budget of the company. It then gives them the proper training and development. giving them the opportunity to grow and improve. The current chairman of the company Mr. and if you remove the name o the enterprise you could be looking at different companies with no connection to the Tata’s. . STYLE Every company has its own management style. The BRCS reviews the strategic direction of each company. style also consists of the way a company operates its business. Ratan Tata is a prime example. through campus recruitment from the top institutes of the country. an organization must have the right combination of skills that complement each other. but its not just enough to have skills. in the way he started at the middle level management.

These are Tata’s Diktat: Globalize: With economies opening up. and in-turn the overall health 43 . Enhance Performance: Executives must pull their weight. Tata companies are aiming for global benchmarks to compete. Be Skill – Intensive: With manufacturing ceasing to be India’s advantage. which help it to gain the necessary experience and which can also help it improve its R&D. Tata companies must be among the top three in their industries. It trains its employees. and the best of them must get opportunities across functions and group companies. These are reflected in the thinking of the organization.The company works hard to ensure that it has the necessary skills to ensure its success. to give them the desired skills. SUPER-ORDINATE GOALS These are goals on which the other elements and other goals of the organization should depend upon. LEADERSHIP Leadership is defined as “The art or the process of influencing people so that they will strive willingly and enthusiastically towards achievement of the group’s mission”. Leadership is something that greatly affects any company’s philosophy. Build brands: Shift from selling commodities to marketing branded products and services that not just differentiate but fetch a premium. Leadership: To justify shareholder interest. the thrust is on knowledge – based industries. through a set of carefully designed programs. culture. Plus it has also entered into a number of alliances with a number of companies.

He wants to justify shareholder interest and wants Tata companies to be among the top three in their industries.R. and profits. perhaps like any company its entrepreneurs had the greatest impact on the company. the group headquarters – is in fact the spark that the group is looking for to rocket itself into a new orbit of growth. when a shy and reclusive Ratan Tata took over the chairmanship of the group from uncle J. and herded the rebellious Tata companies into a cohesive group. One of its founders Jamshedji Tata has been a hallmark of leadership. Ratan Tata has quietly entered 15 new businesses. Ajit Kerkar (Indian Hotels) or Darbari Seth (Tata Chemicals). It was something much more immediate – and arduous. his priority was not new businesses or even growth. Tata now wants to double revenues every four years. and they defined its outlook. exited 11. The challenge however wasn’t merely of ousting powerful chieftains like Russi Mody of Tatasteel. Telco always has had a tradition of great leadership.4 ANALYSIS – 60 Sample size Respondents: . controlled powerfully by powerful satraps. Over the last the 10 years.of the company. every three. That surge of electricity – not unnoticed by merchant bankers. In 1991. It was to turn a loose confederation of companies. into a group that thought and acted like one. 5.D Tata. its businesses and its philosophy in different situations. The leadership in Telco has also had a big impact on the company. now crawling all over Bombay House. His secret weapon: branded products and services.

smoothness.25000. pick up. Performance of a car clearly outweighs its style and cost on the consumer’s list of priorities to buy a car.Owners of Santro Owners of Zen Owners of Indica Owners of 800 Owners of other cars – 14 -. OF RESPONDENTS Most of the respondents are in an income bracket of Rs.e. 85% of respondents i. 45 . fuel efficiency in city conditions. 51 out of 60 respondents gave performance of a car as a factor for making a purchase decision. This indicates that most of the car owners belong to either upper of upper middle class segment. A mere 25% of respondents gave style and 30% gave cost as their reasons to buy a car. derivability. Performance be it engine make up.25000 and above Rs.14 – 14 –9 –9 RESPONDENTS OTHER CAR OWNERS 800 OWNERS ZEN OWNERS INDICA OWNERS SANTRO OWNERS 0 5 10 15 20 25 30 NO. is consumer’s first preference in their look out on attributes in making a decisions for buying a car.20001 to Rs. Very few consumers surveyed gave style and cost as their priorities to buy a car.

The small car owners being mostly the professional class or the upper middle class were very cost conscious and due to their busy life styles preferred low maintenance in their cars. . 26 ranked their satisfaction level as ‘1’. small cars taking less space has no parking problems.79’ as an average figure of satisfaction level. Having owned fewest carts previously. The main reasons which were quoted for their satisfaction were driving comfort. most of them using at least 3 sources of seeking the information. easy parking. 9 ranked ‘3’. Out of a total of 60 respondents. small is cute. easy gear shifts and good fuel efficiency. good fuel efficiency. Given the city conditions. A probe into respondents’ satisfaction level. . 2 ranked ‘4’ and only one respondent showed null satisfaction. gave ‘1. Most of these small car buyers being first time purchasers usually go for friends. easy derivability in heavy traffic conditions.. less maintenance. They believe that extensive search is necessary to make a good buy. they had very less information about the cars. good pick-up and a perfect car for a small family. Most of the small car consumers are happy with their purchases. The small car consumers are high search information seekers. 20 ranked ‘2’. ranking from 1 to 5 where ‘1’ was full satisfaction and ‘5’ full dissatisfaction with theirs cars. automobile magazines or other car owners to get information about the various products and brands in the market to know the most favorable brand or products and later they seek further information from dealers and other sources once they are through their choice process and have decided upon a particular brand or brands to buy. the consumers needed a very good overall performance of cars.

The main reason again given for their preference was comfort of driving. midsize cars. 16 large size cars. the highest number of respondents chose small cars. performance. good looks and fuel efficiency.Again when the consumers were asked about their preference for any other car. 47 . etc. that are 20 out of 56 respondents preferred small cars. 5 went for jeep models and 8 consumers luxury cars like BMW. Ferrari. Mercedes.

FACTORS IMPORTANT IN A CAR PURCHASE COST 3% 3% 7% 18% 7% STYLE PERFORMANCE PERFORMANCE AND STYLE PERFORMANCE AND COST STYLE AND COST STYLE COST AND PERFOMANCE 12% 50% Out of a total of 60 respondents surveyed. 2 style & cost . 7 performance and style. 4 gave style and 4 gave cost as the reasons for purchasing their car . 30 respondents gave performance. 2 style & cost and performance. 11 performance and cost.

RESPONDENTS’ RANKING OF ATTRIBUTES PREFERENCE RANK 1 2 3 4 5 6 7 140 120 100 80 60 40 20 PREFERENCE POINTS Attributes Performance Cost Low Maintenance After Sales Service Brand Name Safety Credit Facility Preference Rank 1.9 2.5 2.8 4.4 130 102 106 92 84 72 32 Preference Points 49 .4 6.7 3.4 3.

on an average of 60 respondents was ranked ‘1.9 and 2. .CREDIT FACILITY PREFERENCE POINTS SAFETY BRAND NAME AFTER SALES SERVICE LOW MAINTENANCE COST PERFORMANCE 0 20 40 60 80 100 120 140 ATTRIBUTES When the consumers were asked to rank the factors. the lowest preference rank. Performance.35 on the preference scale and credit facility stood at the car owners’ lowest preference with a rank of 6.86 as their respective rankings. The car owners as the second most important factors ranking them 2. and performance of the car was ranked the highest on the preference scale.43. After sales service and brand name were the third and fourth preferences of the respondents with 3. ranking the factors from 1 to 7 where ‘1’ is the highest preference rank ‘7’.7 respectively considered the cost and low maintenance of a car.4 and 3.48’ showing that the consumers sought performance in a car as the first important factor in making a purchase. they consider to be important in buying a car. Safety was ranked 4.

SOURCES OF INFORMATION 40 35 30 NUMBER OF RESPONDENTS 25 20 15 TELEVISION MAGAZINE FRIENDS DEALERS MECHANIC OTHER CAR OWNERS 10 5 0 1 SOURCE OF INFORMATION The survey showed that a highest number of consumers sought friends as a source of information. Television as a source of information was used by less number of consumers and a very few of them went to mechanic’s in search of information 51 . Even as a majority of them went for magazines and other car owners as a source of seeking information. a good number of consumers went to dealers for getting the information.

then comes media & other factors . .INFLUENCING FACTORS IN DECISION MAKING 80 70 60 50 PERCENTAGE OF RESPONDENTS 40 30 20 10 0 1 INFLUENCERS FRIENDS FAMILY MEDIA OTHERS The survey showed that a highest number of consumers influenced by family in decision making . friends other major factor in influencing the consumer’s decision .

Family wields the highest influencing power in making a purchase decision for an Indian consumer. they get the product information from the other sources like television. BMW. Jaguar. Rolls Royce. easy derivability.5 CONCLUSIONS Consumers of small cars are seeking a very good overall performance in a car than any other attributes. Usually consumers get detailed information through friends. Safety and credit facilities are almost ignored factors in purchasing a small car. Porsche.5. the cars with a class apart when it comes to their brands images. Friends and media also have a good impact on decision-making. cars which are considered to the best on the globe. A very few consumers take a self-purchase decision. Again a good after sales service and low maintenance in a vehicle is a garnish on customer’s delight. Pajero. Good looks hardly count for the buyers of small cars. good acceleration. 53 . Ferrari. hoardings etc. style. cars which flaunt status. magazines. other car owners and dealers whereas. The dream cars of the consumers are high luxury cars like Mercedes S-class. requiring small rooms for parking. Most of the consumers prefer Small cars and mid sized cars for their good mileage. wealth and attitude of the people owning them.

284 270 568 147 25 1.130 3.396 3.126 2.170 31.664 5.030 302 222 1 275 800 498 336 151 299 1.259 January '06 5.366 2.116 6.765 20.975 13.717 8.040 .8120 18.316 5.954 24.041 5.957 23.204 2.000 19.475 165.878 3.447 2.606 3.351 3.442 2.416 3.613 9.232 24.207 January'05 5.664 2.319 140.308 40.428 24.CHAPTER 6 ANNEXURE PRODUCTION Category M&HCV LCV UTILITY CARS TOTAL January '07 7.368 20.293 2.344 2.725 2.693 2.944 4.1761 ESR THE MONTH Domestic Category January January '07 '06 January'05 January '07 Exports January '06 Total January January January January '05 '07 '06 '05 M&HCV LCV UTILITY CARS TOTAL 7.521 7.318 35.614 10.370 7.037 13.365 18.346 52.069 16.357 2.304 3.010 7.269 2.684 10.559 2006-2007 57.359 3.949 2.015 23.325 14.783 2005-2006 2004-2005 44.844 61.

308 12.197 25.308 140.326 45.362 43.138 139.687 28.259 5.366 2.378 120.765 20.015 23.755 1.862 1.775 2.269 63.800 24.222 316 1.279 4.718 5.660 33.610 23.892 25.244 TATA MOTORS' FLASH FIGURES FOR JANUARY 2007 PRODUCTION Category M& HCV LCV UTILITY CARS TOTAL January '07 January '06 January '05 10.584 19.238 45.133 8.826 171.955 3.982 95.897 20.368 20.541 63.380 29.501 6.582 132.797 LCV 26.980 35.813 19.225 CARS TOTAL 61.594 462 11.034 30.122 21.717 2004-2005 44.549 59.098 1.037 FOR THE MONTH 55 .583 35.434 5.560 UTILITY 19.847 38.748 7.890 2.346 52.177 49.717 8.488 2005-2006 59.768 41.242 19.673 19.276 131.684 10.204 2.892 165.207 2006-2007 81.071 247.878 3.045 48.428 24.269 2.FOR THE YEAR Domestic Category 2006-07 2005-06 2004-05 2007-06 Exports 2005-06 2004-05 2006-07 Total 2005-06 2004-05 M&HCV 57.695 171.361 1.359 3.

968 20062007 83.420 31.133 20052006 57.839 7.326 171.370 7.325 FOR THE YEAR Domestic Category M& HCV LCV UTILITY CARS TOTAL 20062007 80.357 2.468 17.447 2.176 61.232 24.385 2.Domestic Category January '07 January January '05 January '06 '07 Exports Total January '06 January '6 January '05 January '04 January '07 M& HCV LCV UTILITY CARS TOTAL 9.664 2.191 7.770 20052006 59.286 25.664 19.365 18.656 20052006 2.898 24.767 43.955 3.807 3.336 2.755 1.615 87.496 4.362 2.949 2.125 20042005 45.034 20.091 5.847 Total 20042005 1.648 348 302 25 299 974 498 336 151 299 **1284 10.808 12.550 6.467 94.045 48.614 11.606 3.361 1.271 38.520 3.671 28.776 20062007 3.768 23.738 26.531 63.852 7.840 1.919 19.742 .157 131.589 9.597 19.800 49.933 23.521 7.813 19.673 19.142 5.302 Exports 20042005 43.084 29.086 164.980 139.693 2.686 4.116 6.582 231.614 10.258 3.678 355 1.041 405 713 194 1.378 **8204 248.

Rate the following (I to II) attributes according to you preferences while buying a new car Price  Style Performance Performance & Style Performance & Cost Style & Cost Style . Which car do you own Name Model Colour 3. How much do you spend on maintenance on a monthly basis? 5.1 QUESTIONNAIRE A survey of consumer perception about small cars Personal details: Name: No. Do you own (Please Tick?) Car 2 wheeler 2. Name some cars in the small car segment in India 6. Performance& Cost       57 . of members in family: Monthly household income: 1. Are you satisfied with it? 4.6.

Rate the following cars as per your perception on the basis of the attributes specified (5 excellent to 1 poor) •Indica •Santro •Zen •Sales and services •Price •Fuel efficiency •Smooth and stable ride •Luxury •Low maintenance •Style •Financing facility •Comfort •Safety 10. being the only car which gives best performance  Santro has the most effective AC  Zen has the most jazzy and outgoing colures 9. Are you planning to buy a car within next? One month Two months 6 months 1 year 11. Comment on the following cars as to how can there be any improvements Indica Santro Zen .Strongly disagree  Indica. Comment on the following statements according top the tables given below 1 strongly agree 2.Agree 3-neither agree nor disagree 4-disagree 5. Which one? 12. Why? 13.8.

tata.com www.tata.htm http://www.com/automob_products.tata.com/tata_engg/articles/index.tata.com/tcs/articles/20011110_auto_engg_service(1).CHAPTER-7 BIBLIOGRAPHY Reference books: Consumer behaviors.cybersteering.tata.tata.htm www.htm http://www.marutiudyog.tata.com www.com/home.com/tata_engg/index. By John C.tatainternational.com/0_b_sectors/index.com/0_careers/our_people/20020214_suman1.autoweb.telcoindia.com/auto_makers/telco/tata. Mowen Macmillan publications.com/tata_engg/articles/2000106051indica2.htm http://www.htm http://www.htm http://www.hyudaimotorindia. Market research By Tull and Hawkins Internet: http://www.asp http://www.htm http://www.htm http://www.com/tata_engg/media/20020228.html http://www.com Magazines: Auto Car 2007 Auto India January 2006-07 59 .

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