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I the undersigned solemnly declare that the report of the project work
entitled (Analysis Of Market Strategies Of Automobile Companies In India) is
based my own work carried out during the course of my study under the
supervision of (Anusha lal) .
I assert that the statements made and conclusions drawn are an outcome of
the project work. I further declare that to the based of my knowledge and
belief that the project report does not contain any part of any work which
has been submitted for the award of any other degree/diploma/certificate in
this university or other university.
Deepshikha sinha
Roll no:-20MBA01044
This to certify that the report of the project submitted is the outcome of the
project work entitled (Analysis Of Market Strategies Of Automobile Companies
In India) carried out by (Deepshikha sinha) bearing Roll no:-(75) and
enrollment (registrtiuon) Number :-20MBA01044 carried by under my
guidance and supervision for the award of degree in master of business
administration of doranda College ,Ranchi,Jharkhand.
(signature of co-ordinator)
This is certify that the report of the project submittted is the outcomes of
the project work entitled(Analysis Of Market Strategies Of Automobile
Companies In India) carried out by (Deepshikha sinha) bearing Roll no:-(75)
enrollment no:-20MBA01044 Carried by under guidance and supervision
foe the award of degree in master of business administration of Doranda
College,Ranachi,Jharkhand.
To the best of the my knowledge
I. Embodies the work of the candidate him/herself.
II. Has duly been completed .
III. Fulfils the requirements of the ordinance relating to the MBA degree
of the university and
IV. Is up to the desire standard for the purpose of which is submitted.
ACKNOWLEDGEMENGT
Primarily, I would thank God for being able to complete this project with
success. Then I will thank my Principal (B.P.verma) and (Anusha lal)
teacher under whose guidance I learned a lot about this project. His
suggestions and directions have helped in the completion of this project.
Finally, I would like to thank my parents and friends who have helped me
with their valuable suggestions and guidance and have been very helpful in
various stages of project completion.
Name:-Deepshikha Sinha
INDEX
➢ Introduction
➢ Company profile
➢ Research methodology
➢ Research Design
Design
Population/Un
iverse
Sampling Unit
➢ Data Processing
5. LIMITATIONS 54
6. SUGESSTION 55
7. CONCLUSION 56
8. BIBLOGRAPHY 57
9. ANNEXURE 58-60
For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote
the new avatar of Scorpio. Created by Interface Communications, the mass media campaign
behind the prelaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president
AC Nielson), we upgraded our existing model with new features. However, the positioning of
the brand will remain the same so the adline will continue to be
the same—‗Nothing Else Will Do.‘‖
The company plans to focus on press ads to highlight the new features and improved fuel
hosting roadshows and ground promos. Till now we have sold over 20,000 Scorpios since we
launched this brand. With this improved version, we will phase out the old
brand,‖ hisadds. In
youthful and sporty SUV, says MrJejurikar.Tata Motors is gearing up to launch a new multi-
Media Ad Campaign To Announce The New Variant Of Tata Safari, The Petrol Version. On
Tata
Motors new marketing strategy, says Ogilvy & Mather India clients service director
SharmilaMalekar: ―To announce the launch of Tata Safari (petrol variant), we will be
launching a multi-media ad campaign within a month. The new campaign will include, press
ads, TVCs and radio advertising. There will be a new adline too.‖
At present, the baseline for Tata Safari is ‗Make Your Own Roads‘. In addition to mass media
advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari
In the Indian automobile industry, SUVs today account for only 15 per cent of the total
TYPES OF STRATEGIES
In this scheme, firms are classified based on their market share or dominance of an
industry.
➢ Innovative Strategy
This deals with the firm‘s rate of the new product development and business model
innovation. It asks whether the company is on cutting edge of technology and
business innovatio
Starting its journey from the day when the first car rolled on the streets of Mumbai in
1898, the Indian car industry has demonstrated a phenomenal growth to this day.
During the early stages of its development, Indian car industry heavily depended on
foreign technologies. However, over the years, the manufacturers in India have started
using their own technology evolved in the native soil. The thriving market place in the
country has attracted a number of car manufacturers including some of the reputed
global leaders to set their foot in the soil looking forward to enhance their profile and
prospects to new heights.
In 1940s the Indian automotive industry was at a very low stage. An embryonic automotive
was plagued by unfavorable government policies. All it had to offer in the passenger car
segment was a 1940s Morris model called the Ambassador. In 1953, government of
India and
Ford and General Motors, sensing the potential, set up local companies that year to sell and
service their motor cars and trucks. In 1928, General Motors India Ltd
commenced
commenced assembly of automobiles in Madras, and the next year in Bombay and Calcutta.
Hindustan Motors Ltd, Calcutta, and Premier Automobiles Ltd, Bombay, were established in
1942 and 1944 respectively to progressively manufacture complete automobiles. Hindustan
The car sector of India is the seventh largest in the world. The country is the largestmanufacturer of
motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized
an unbelievably huge increase in these figures over the immediate future. In the year 2009, India
rose to be the fourth largest exporter of cars following Japan, South Korea and Thailand.
its share-holding through Tata locomotive manufacturing unit and vehicle sector in
1954 after forming Germany. Despite the success of its had to diversify and he began
to demand, he decided that buildings a
small car would be the most practical new venture. So in 1998 it launched Tata
Indica, India's first fully indigenous passenger car. Designed to be inexpensive and
simple to build and maintain, the Indica became a hit in the Indian market. It was
also exported to Europe, especially the UK and Italy. After years of dominating the
commercial vehicle market in India, Tata Motors entered the passenger vehicle
market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch
of three more vehicles, Tata Estate (1992, a station wagon design based on the
earlier 'Tata Mobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994)
and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica
Doranda College, Ranchi
Jharkhand
in 1998, the first fully indigenous passenger car of India. Though the car was
initially panned by auto-analysts, the car's excellent fuel economy, powerful engine
and aggressive marketing strategy made it one of the best selling cars in the history
of the Indian automobile industry. A newer version of the car, named Indica V2,
was a major improvement over the previous version and quickly became a mass-
favorite. Tata Motors also successfully exported large quantities of the car to South
Africa. The success of Indica in many ways marked the rise of Tata Motors.
Production
Although the sector was hit by economic slowdown, overall production (passenger
vehicles,commercial vehicles, two wheelers and three wheelers) increased from 10.85 million
vehicles in2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles increased marginally
from 1.77million to 1.83 million while two-wheelers increased from 8.02 million to 8.41
million.In recent times, India has emerged as one of the favorite investment destinations for
automotivemanufacturers.
• Volvo Buses India is eyeing 35 per cent growth in domestic sales this year at 550-600 unitsas
against around 440 units sold in 2008.
• Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of Japan‘s Toyota
Motor Corp, is increasing its investment by US$ 164.8 million at its manufacturing site
near Bangalore, to touch US$ 824.32 million by 2016.
• French carmaker, Renault, has completely recast its plans for India as part of a
new,aggressive approach that will see it producing cars in its Chennai plant by 2011.
• Hyundai has made India its global hub for manufacturing small cars. It will invest US$
1 billion in its second plant in Chennai by 2013. In addition, it is also investing US$ 40
millionin its research and development (R&D) facility in Hyderabad.
• General Motors has so far invested about US$ 1 billion into its Indian operations.
Sales of cars and commercial vehicles have been impacted due to global
economic slowdown.However, in spite of that there has been a marginal
increase in the number of
per estimates byCARE Research, the domiecstwo-wheeer sales will grow at a CAGR of 8.8 per
cent by 2014 at11.3 millio n units vis-a-vis 7.43 mil ion units in 2008-09. Honda Siel Cars
India (HSCI), the Indiansubsidiary of the Japanese iant Honda Motor Co, said that its sales
will register double digit growthin the current f nancial year. The company expects
its total sales to
Exports
In order to make India a power to reckon with in the automotive sector the
government launched theAutomotive Mission Plan (AMP) 2006-2016. The
vision of the AMP is "to emerge as the destinationof choice in the world for
design and manufacture of automobiles and auto components with output
reaching a level of US$ 145 billion accounting for more than 10 per cent of the
GDP and providingadditional employment to 25 million people by 2016." As
per the AMP, it is estimated that the totalturnover of the automotive industry in
India would be in the order of US$ 122 billion-159 billion in2016. It is expected
that in real terms, India would continue to enjoy its eminent position of being
thelargest tractor and three-wheeler manufacturers in the world and the world's
second largest two-wheeler
Tata Sumo
Production 1994–present
Assembly Pune, India
Successor Victa, Victa DI, Sumo Grande
Class MUV, SUV (Sumo Grande)
Body style 5-door, Body on Frame
Layout Front Engine, Rear Wheel Drive
Engine 2.0L IDI
Transmission 5-speed manual
Wheelbase 2,400 mm (94.5 in)
Length 4,450 mm (175.2 in)
Width 1,756 mm (69.1 in)
Height 1,906 mm (75.0 in)
Tata Safari
Tata Indica
"Tata Indica V2"
Manufacturer Tata Motors
Production 1998–present
Assembly Pune, Maharashtra, India
Class Supermini car
Doranda College, Ranchi
Jharkhand
Layout FF layout
ALL Products
Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
Commercial vehicles
Tata Ace
Tata Super Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1512 (Medium bus chassis)
Tata 1612/1616 (Heavy bus chassis)
Tata 1618 (Semi Low Floor bus chassis)
Tata 1623 (Rear Engined Low Floor bus chassis)
Tata 1518C (Medium truck)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger
transportation)
Tata Divo (Fully built luxury coach)
Tata CityRide (12 – 20 seater buses for intra-city use)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8×2)
Tata 3516 (Heavy truck)
Doranda College, Ranchi
Jharkhand
Tata 4018 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6×4)
Tata Novus (Heavy truck designed by Tata Daewoo)
Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military vehicles
Tata LSV (Light Specialist Vehicle)
Tata Mine Protected Vehicle (4×4)
Tata 2 Stretcher Ambulance
Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions
Tata LPTA 713 TC (4×4)
Tata LPT 709 E
Tata SD 1015 TC (4×4)
Tata LPTA 1615 TC (4×4)
Tata LPTA 1621 TC (6×6)
Tata LPTA 1615 TC (4×2)
Tata Winger Passenger Mini Bus
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contributes
to the goals of the company and its marketing objectives.
SALES STRATEGY
Sales promotion
➢ To increase the sales & encourage the present consumers to use more frequently.
➢ To help the new product enter into existing and new market.
Spread Information.
Stimulate Demand.
1.Price Offers Offering a product at a lower than the To encourage immediate sales,
normal price. attract non-users,etc.
3.Discounts Other than normal trade & cash To push more sales to trade, early
discount. cash recovery.
5.Dealer gifts Offer of useful articles & attractive To improve dealer relations, make
gifts to dealers for his personal, family impact on consumer.
or office use.
Tata has aided customers by providing them the facility to bring their vehicle to a 'Tata True
Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty
discounts in return. This helps them retain the customer.
Tata has proper customer complain handling cell under the CRM department. The customer
care will help the customers solving all their problems and answer all their grievances.
➢ Tata Insurance:-
It is launched in 2002 Tata provides vehicle insurance to its customers with the help of
National Insurance Company, Bajaj Allianz. The service was set up by the company with the
inception of two subsidiaries Tata Insurance Distributors Service Pvt. Ltd. And Tata Insurance
Brokers Pvt. Ltd
Shows
The company plans to stage road shows, to display vehicles in the pavilions during various
college festivals and exhibition. This car will appeal to youngsters more.
Television advertisements
Advertisements to promote and market our product will be shown on leading television
channels. Major music and sports channels will promote and they will reach out to the youth
will be promoted through Star, Zee, etc as it has more viewers.
Radio
Radio is the medium with the widest coverage. Studies have recently shown high levels of
exposure to radio broadcasting both within urban and rural areas, whether or not listeners
actually own a set. Many people listen to other people's radios or hear them in public places.
So radio announcements will be made and advertisements will be announced on the radio
about the product features and price, qualities, etc.
Print Ads
Workshops and seminars will be held in colleges and big corporate to make people aware
about the companies past performance and product features, its affordability and usage, vast
distribution network. Road shows will be conducted where free trials of the car would be
given.
COMPETITVE ADVANTAGE OF TATA
Wide dealership network allows the company to service customers over a wider geographical
area than competitors. Currently, there are 140 outlets of Tata Motors.
MUL providing its customers an opportunity to resale their car to MUL or exchange with
anew Tata car under its ‗True Value´ network has proven really beneficial. In FY07True Value
network touched 10000 units a month and more than 90% of that resulted in the exchange of
a new car
In a car manufacturing plant, the press shop, paint shop, engine and transmission assembly,
and machine shop are used for manufacturing different models A presence across various
segments ensures that the company retains its existing customers by offering them upgrades
from its portfolio of models.
The objective is to study those factors which can accelerate the marketability of the TATA
VISTA compared to its competitors.
Automobile history
RESEARCH METHODOLOGY
The process used to collect information and data for the purpose
of making business decisions. The methodology may
include publication research, interviews, surveys and other research techniques, and could
include both present and historical information.
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research methods or techniques but also the methodology.
Research designs are concerned with turning the research question into a testing
project. The best design depends on your research questions. Every design has
its positive and negative sides. The research design has been considered as a
"blueprint" for research, dealing with at least four problems: what questions to
study, what data are relevant, what data to collect, and how to analyze the
results.
Exploratory Research:
Exploratory research is a type of research conducted for a problem that has not
been clearly defined. Exploratory research helps determine the best research
design, data collection method and selection of subjects. It should draw
definitive conclusions only with extreme caution. Given its fundamental nature,
exploratory research often concludes that a perceived problem does not actually
exist. Exploratory research often relies on secondary research such as reviewing
available literature and/or data, or qualitative approaches such as informal
discussions with consumers, employees, management or competitors, and more
formal approaches through in-depth interviews, focus groups, projective
methods, case studies or pilot studies. The Internet allows for research methods
that are more interactive in nature.
Market research requires two types of data i.e. secondary data and primary data. Primary data
has been used abundantly for the study. Well-structured questionnaires were prepared & the
survey was undertaken. Feedback for the display has been taken by asking questions &
observation has also done to gather primary information.
There is also a use of secondary data, collected from the various journals, books, and
websites & from company managers.
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
The secondary data has been collected from the following modes:
Magazines
Newspaper
Data through internet sources
Data collected from organization
Doranda College, Ranchi
Jharkhand
Area of research: Delhi
Causal Research:
It is the testing of a hypothesis on the cause and effect within a given market.
Casual Research explores the effect of one thing on another and more
specifically, the effect of one variable on another. The research is used to
measure what impact a specific change will have on existing norms and
allows market researchers to predict hypothetical scenarios upon which a
company can base its business plan. For example, if a clothing company
currently sells blue denim jeans, casual research can measure the impact of the
company changing the product design to the color white. Following the
research, company bosses will be able to decide whether changing the color of
the jeans to white would be profitable. To summaries, casual research is a way
of seeing how actions now will affect a business in the future.
INTERPRETATION
By analyzing the datas available about the sales figure it can be noted-
Vista Aqua is the most selling car amongst the other cars. Next comes the Vista
Aura and Vista Terra. These three cars constitute most of the sales. All other
cars of tata have around 23.33%
Cumulativ
Frequenc Percent Valid e
y Percent Percent
Valid YES 29 29.0 29.0 29.0
NO 71 71.0 71.0 100.0
Total 100 100.0 100.0
80
60
Percent
40
20
0
YES NO
INTERPRETATION
From the above data we find out that most of the people surveyed are not aware
of all the versions of Tata Indica passenger car. Therefore more measures must
be taken to promote and create awareness about the cars available.
INTERPRETATION
The above chart shows the annual income level of the 30 chosen samples. 17 samples have
income ranging between 1 lakh and 3 lakhs. 6 people have income between 3-5 lakh. 5
samples have income below 1 lakh. And the rest have income above 5 lakh.
d) Car customers
Yes 7
No 23
INTERPRETATION
The above chart indicates that tele media does not actually create a brand appeal. Amongst
the 30 samples, 23 feel that tele media is not so important in creating a brand appeal. The
performance, average and features create a brand appeal.
Satisfied 11
Not satisfied 19
Tata passenger car users are not so satisfied from the tata cars though it gives the best average
amongst all same segment cars available and it is very economical. 19 out of 30 samples are
not satisfiedwith car and expect something better than the available cars.
g) Tata Passenger Cars, Creating brand value
Yes 15
No 5
INTERPRETATION
The above chart shows that 4 samples prefer Tata cars because it provides power steering at a
very low cost as compared to other cars. People say that Tata cars give the best mileage and it
is very economical, 14 people prefer Tata Motors because of the mileage it gives. Most of the
people prefer Tata Motors as it sells the cheapest cars and at the same time provides features
which cannot be found in other cars in the same segment. It offers best features at least price.
Cumulative
Frequency Percent Valid Percent Percent
Valid YES 49 49.0 49.0 49.0
NO 51 51.0 51.0 100.0
Total 100 100.0 100.0
60
50
40
Percent
30
20
10
0
YES NO
INTERPRETATION
The above chart shows that 51% people do not actually search for information before buying
a car. They just simply buy a car according to their budget and the brand value. They do not
usually search for various cars in the same segment. The rest of people prefer to do a detailed
research on various cars and its features before buying a new car.
Cumulative
Frequency Percent Valid Percent Percent
Valid Very good 17 17.0 17.0 17.0
Good 65 65.0 65.0 82.0
Neither good nor poor 13 13.0 13.0 95.0
poor 5 5.0 5.0 100.0
Total 100 100.0 100.0
70
60
50
40
Percent
30
20
10
0
Verygood Good Neither good nor poo poor
INTERPRETATION
Tata cars are best in terms of mileage as they have been made for the common man. From the
data collected it was found that 17% of the samples feel that the mileage of Tata cars is very
good. 65% people have rated it as good. Some people say that the mileage of the cars is not
so good and not so bad also at the same time. Only 5% of the chosen samples think that the
mileage of the Tata cars is poor.
Cumulative
Frequency Percent Valid Percent Percent
Valid Very frequent 23 23.0 23.0 23.0
Frequent 52 52.0 52.0 75.0
Neither frequent
14 14.0 14.0 89.0
nor frequent
Infrequent 7 7.0 7.0 96.0
very frequent 4 4.0 4.0 100.0
Total 100 100.0 100.0
50 52
40
30
20 23
14
10
7
0 4
Very frequent Neither frequent nor very frequent
Frequent Infrequent
How w ill you rate the frequency of maintenance service and repair ne
INTERPRETATION
From the data collected we found that tata passenger cars need to be properly maintained. It
requires maintenance and repair frequently for smooth running. These cars need servicing
more frequently. The maintenance cost Tata cars is much more as compared to various other
cars in the same segment. If they are not maintained and serviced regularly then it may give a
problem in future. For long run of the car it requires frequent serving and maintenance. If
there is any break down in the car then it has to be immediately repaired. The cost of
repairing is a little more if we compare it to maruti cars as its parts are a bit costly and are not
available at all places.
Cumulative
Frequency Percent Valid Percent Percent
Valid Very good 34 34.0 34.0 34.0
Good 57 57.0 57.0 91.0
Neither good nor poor 6 6.0 6.0 97.0
poor 2 2.0 2.0 99.0
very poor 1 1.0 1.0 100.0
Total 100 100.0 100.0
70
60
50
40
Percent
30
20
10
0
Very good Neither good nor poo very poor
Good poor
INTERPRETATION
When it comes to comfort Tata motors are one of the most comfortable cars. Whether it
comes to driving or the seating space, these cars are ranked amongst the top rated cars
available at competitive prices. 37% of the samples have rated Tata cars as very good in terms
of comfort. 57% have rated it as good. Some people feel that it is not so good and not so bad
bt it is satisfactory. But only 1% people say that Tata cars are very poor when it comes to
comfort.
FINDINGS
➢ TATA MOTORS is number three in passenger car market after maruti-suzuki &
hyundai.
➢ Out of the samples, people are highly convinced that TATA MOTORS will
yield them better results
➢ As the sales of Maruti grows as well as Hundai‘s santro is still doing well in
mid size and small size segment so the INDICA VISTA may be a good
options for the company in this term for sustaining sales in long run as well
as in the current situations.
➢ Product will have a gradual progress. Because most industries would wait
for the response about the product from other Company
➢ Customers were educated by me, about fuel efficient cars by TATA MOTORS
➢ Some of the information was confidential so much information was not revealed.
➢ The time span of the survey was short and hence only major aspects were considered.
➢ Availability of the respondents amidst their busy schedule did not permit detailed study.
questionnaire was designed to understand the market and create awareness about
TATA MOTORS. Based on the questionnaire, data was collected and analyzed
and it was found that the customers are willing to buy the Cars. However they
are also skeptic about it. Suggestions are provided based on customer
requirements and market situation. A nearest attempt has been made to make
the study realistic and suggestive, but it is not claimed that the findings and
BOOKS:
MAGAZINES:
• MONEY TODAY
• BUSSINESS WORLD
• OUTLOOK PROFIT
• INDIA TODAY
WEBSITES”
• Tatamotors.com,
• Yahoofinance.com,
• Valuereseacrhonline.com
QUESTIONAIRE
YES
NO
YES NO
YES NO
YES NO
YES NO
VERY GOOD
GOOD
NEITHER GOOD NOR POOR
POOR
VERY FREQUENT
FREQUENT
NEITHER FREQUENT NOR INFREQUENT
INFREQUENT
VER
Y
GO
OD
GO
OD
NEITHER GOOD
NOR POORPOOR
VERY POOR