A

PROJECT REPORT
ON

“TATA MOTORS”

IN CONTEXT WITH “SAKTHI MOTORS

RAMANATHAPURM

Submitted in the partial fulfillment for the award of degree

OF

BACHELOR OF BUSSINESS ADMINISTRATION

Of
Idroosh rifath alagappa University, karaudi
tamilnadu

Session 2016-2019

Submitted by
GUIDED BY
IDROOSH RIFATH
MR. BBA 6TH SEM HOD
(MANAGEMENT)

1
 DEPARTMENT OF MANAGEMENT
SYED HAMEEDHA ARTS & SCIENCE COLLEGE
KILAKARAI

SAKTHI MOTORS RAMANATHAPURM

Declaration
I IDROOSH RIFATH student of sixth semester at
“Alagappa university” her by declare that these
research report under the title “customer
satisfaction & buying behavior” is the record of
my original work under the guidance of Mrs.
S.vimili (H.O.D ) B.B.A . These report has never
been submitted any where for award of any
degree or diploma.

Place:

BBA 6TH SEM

Date:

2
 Certificate
This is to certify that IDROOSH RIFATH a student
of B.B.A sixth semester at our institute under my
guidance and supervision he had carried out the
research project under title

“Customer satisfaction &buying

behavior”
This research report is the original one.

Project guide
PRINCIPAL
(H.O.D management)

Place:

Date:

3
 Acknowledgement
Perhaps the most awaited moment of any
endeavor in its successful competition of their
project report cases study having worked on
her project for the whole academic session. I
would like to express my sincere gratitude to
all those who made it possible.

Firstly I am heartily thankful to my friend

Mr. faizal student of the B.B.A department
under whose able guidance. I had the privilege
to work and who guided at every stage.

I take this opportunity to express my

sincere gratitude to our principle for being
guide of philosopher throughout B.B.A
program.

I shall be failing in my duty if I don’t

express my deep sense of gratitude to all my

4
friends and the relatives who have share their
valuable time and helped me directly or
indirectly in the preparation of their project .

At the end last but not the least; I would like

to thanks the other staff and non staff member
of this college.

Preface
The topic chosen by me for my project is
“customer satisfaction & buying
behavior” In reference to Sairam automobiles. At
present Tata is market leader in the Indian market in
four wheeler segment.

Today there are various companies coming in Indian

and these certainly will exist a cutthroat competition in
these field. I have chosen a Tata motors as a topic
essence of my project .today four wheeler consumer
due to new manufacturing entrant has started getting a
wide choice while buying one these gave to considered
the facility provided by the four wheeler the price

5
,mileage , maintenance and service etc. while buying a
four wheeler

A normal customer is quit puzzled and faces for an

uneven some time huge problems in deciding which
vehicle to buy. I realized the problem and decide to take
these up as the challenge and provide answer to as the
requirement of The Tata motors.

INDEX
Page
no:
Chapter Introduction 8-14
-1 Historical back
ground
Current scenario 15-20
Chapter Company profile
-2 Products of company 21-24
Marketing strategy
Chapter Current facts 25-27
-3 Outlook of industry
Global operations 28-32
Chapter Consumer buying
-4 behavior
Consumer buying 33-35

6
Chapter decision process
-5 Characteristics of
buying behavior
Problem definition 36-50
Chapter Scope of study
-6 Limitation of study
Object of study 51-52
Customer satisfaction 53-59
Questionnaire
Chapter Research
-7 methodology 60
Findings and suggestion
SWOT Analysis of Tata motor
Future of automobile in
Chapter economy
-8 June 2009 domestic
Chapter sales report
-9 Inflation effect on car
market
Bibliography
Chapter
-10

Introduction
India is an emerging country with huge potential. The domestic economy is
now growing at around 9-10% per annum and India’s importance in global

7
terms is being reinforced by rapidly rising exports and domestic
consumption. At a time when numbers of a slowdown and overheating in
the Indian economy have started gaining momentum, the Indian rupee
sprang a surprise by pushing the GDP figure past the trillion-dollar
(42,00,000 crore) mark.
The automotive industry is at the center of India’s new global dynamic. The
domestic market expanding rapidly as incomes rise and consumer credit
becomes more widely available. Manufacturer’s product lines are being
continually expanded, as is the local automotive manufacturing base.
Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global
automotive industry solution high up the automotive value chain.

 India eyes 25 million automotive jobs.

 India's GDP is set to double over the next decade
 In percentage terms, the automotive industry's
contribution should also double.
 In dollar terms, the sector's contribution is set to
quadruple to some $145bn

With the world’s second largest and fastest-growing population,

there is no denying India’s potential in both economic and
population terms and the effect it will have on the auto industry in
the years to come. The country is already off to a good start, with
a well-developed components industry and a production level of 1
million four-wheeled vehicles a year, plus a further 5 million two-
and three-wheelers.

Historical back ground

In India there are 100 people per vehicle, while this figure is 82 in China. It
is expected that Indian automobile industry will achieve mass motorization
status by 2014.

8
Since the first car rolled out on the streets of Mumbai (then Bombay) in
1898, the Automobile Industry of India has come a long way. During its
early stages the auto industry was overlooked by the then Government and
the policies were also not favorable. The liberalization policy and various tax
reliefs by the Govt. of India in recent years has made remarkable impacts on
Indian Automobile Industry. Indian auto industry, which is currently growing
at the pace of around 18 % per annum, has become a hot destination for
global auto players like Volvo, General Motors and Ford. A well developed
transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system
the Automotive Industry of India is also growing at rapid speed, occupying
an important place on the 'canvas' of Indian economy.
Today Indian automotive industry is fully capable of producing various kinds
of vehicles and can be divided into 03 broad categories: Cars, two-wheelers
and heavy vehicles.

 The first automobile in India rolled in 1897 in Bombay.

 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in Indian auto industry.
 Within two-wheelers, motorcycles contribute 80% of the segment size
 Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
 Tata Motors dominates over 60% of the Indian commercial vehicle market.
 2/3rd of auto component production is consumed directly by OEMs.
 India is the largest three-wheeler market in the world.
 India is the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the world.
 The number one global motorcycle manufacturer is in India.
 India is the fourth largest car market in Asia - recently crossed the 1 million mark.

9
FOUNDATION - The seeds of what would
mature and become today's Tata group were
laid long years before India became
independent.

CONSOLIDATION - The Tata group ventured into

new areas and built on the foundations, in
spite of the restraints imposed by a controlled
economy.

LIBRILISATION -The Indian economy unleashed

a period of remarkable growth for the
Tata group, in India and worldwide.

10
 FIVE CORE VALUES OF TATA

The Tata Group has always sought to be a

value-driven organization. These values
continue to direct the Group’s growth and
businesses. The five core Tata values
underpinning the way we do business are:

 Integrity: We must conduct our business fairly, with

honesty and transparency. Everything we do must stand the
test of public scrutiny.

 Understanding: We must be caring, show respect,

compassion and humanity for our colleagues and customers
around the world, and always work for the benefit of the
communities we serve.

 Excellence: 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.

 Unity: We must work cohesively with our colleagues

across the Group and with our customers and partners around
the world, building strong relationships based on tolerance,
understanding and mutual cooperation.

 Responsibility: We must continue to be responsible,

sensitive to the countries, communities and environments in
which we work, always ensuring that what comes from the
people goes back to the people many times over.

11
Current Scenario

12
The growth of the Indian middle class along with the growth of
the economy over the past few years has attracted global auto
majors to the Indian market. Moreover, India provides trained
manpower at competitive costs making India a favored global
manufacturing hub. The attractiveness of the Indian markets on
one hand and the stagnation of the auto sector in markets such as
Europe, US and Japan on the other have resulted in shifting of
new capacities and flow of capital to the Indian automobile
industry. According to the International Yearbook of Industrial
Statistics 2008 released by United Nations Industrial Development
Organization (UNIDO), India ranks 12th in the list of the world’s
top 15 automakers.

GENERAL OVERVIEW

INDIAS
LARGEST BUSSINESS GROUP
DIVERSE BUSSINESS IN 7
SECTOR
INTERNATIONAL INCOME
61%OF GROUP REVENUE
OPERATION
IN OVER 80 COUNTRIES
PRODUCT AND SERVICES
EXPORED IN 85 COMPANIES

13
 LARGEST EMPLOYER IN PRI
VATE SECTOR OVER 300,000
GROUP REVENUE
FY09 : 251,543 CR/ $62.5 bn

Tata motors

Tata Motors is India’s largest automobile company. Its revenue in 2008-2009 was
Rs 24,000 crore (U.S.$ 6.4 billion).It is the leader in commercial vehicles in each
segment and the second largest in the passenger vehicles market ,with winning
products in compact, mid-size car and utility vehicle segment. The company is
the world’s fifth largest medium and heavy commercial vehicle manufacturer and
14
the world’s second-largest medium and heavy bus manufacturer. The company’s
29,600 employees are guided by the vision to be “best in the manner in which we
operate, best in the products we deliver and best in our value system and ethics”
Established in 1945, Tata Motors’ presence extends across the length and breadth
of India. Over 3.5 million Tata vehicles have driven on Indian roads since the first
one rolled out on 1954.The company’s manufacturing base is spread across
multiple plants, supported by a nationwide dealership, sales and services and
spare parts network comprising of about 1,200 touch points. The company also
has a strong auto finance operation, Tata Motors Finance for supporting
customers in purchasing Tata Motors vehicles

Company profile
The largest passenger automobile and commercial vehicle manufacturing
company of India Tata Motors Limited, was formerly called TELCO (TATA
Engineering and Locomotive Company), has its headquarters in Bombay,
now Mumbai, India. Established in 1945, listed on the New York Stock
Exchange in 2004 has created Rs. 320 billion wealth and was one of the top
10 wealth creators in India, with manufacturing facilities in the towns of
Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji
Tata and is run by Ratan Tata under the flagship company known as Tata and
sons group. He commands 22000 employees working in three plants as well
as other regional and zonal offices across the length and breadth of India.
Tata motor’s passenger cars still need to reach acceptable
international requirements. The company commands an imposing
65% share of the domestic commercial vehicle market and is
trying to modernize this segment. The financial business of Tata
motors was separated into a subsidiary company in sep. 2006,
where it recorded a strong financial performance during the last 5
year period. From year 2005-2009, the profits of the company
went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in
2008from Rs. 95, 731 Million in 2003. By floating two rights issues
at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150
crores. They are offering one ordinary share valued at Rs. 340

15
every six shares expecting to net Rs. 2.90 Crores, the so called “A”
share would have different voting and dividend rights, for every
such 6 shares held at a face value of 305 would raise Rs. 1.960
Crores, these proceed would be utilized for an early repayment of
the short term funding of 2.3 Billion $ (Rs. 10,189 Crores)
Borrowed for Acquisition of jaguar and Land Rover from their
principle “The Ford Motor Company’s”.

As TATA MOTORS is regarded as one of the best fuel efficient cars.

Hence I conducted a study on the consumer perception about
small cars. Firstly, I took three brands of small cars; Zen estilo,
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. Tata motors were established on September 1, 1945,
originally for the manufacture of Steam Locomotives at
Jamshedpur.
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. But, at the end the research was limited due
to small sample size, small sample area and time constraints.

16
TELCO (TATA Engineering and Locomotive Company)
 Multinational Corporation.
 Headquarters in Mumbai.
 India's largest passenger automobile and
commercial vehicle manufacturing company.
 World's 19th largest automaker.
 Sales: 19,654.41cr.
 Stock price: Rs. 347

In 1969 Tata motors had become an independent producer of

Medium Commercial Vehicles. It had also developed the capability
of designing, testing and manufacturing such vehicles.

17
 Leading commercial vehicle manufacturer and has significant
presence in the multi-utility and passenger car segments.

With the Launch of Tata Indica, a Euro 2 compliant vehicle is the

country’s first indigenously designed, developed and
manufactured passenger car.

With the launch of Tata nano, Tata has penetrated the market to
its extreme by making a car available for Rs. 132000 only. This is
the cheapest car in India till date and with the announcement of
its diesel variant it has made potential buyers to eagerly wait for
it.

Products of TATA Motors

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[1] Passenger cars and utility vehicles

19
[2]Commercial vehicles

[3] Military vehicles

20
[4] Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indica
2002 Tata Indica
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante
2009 Tata Prima

MARKETING STRATEGIES

21
TATA unveiled its long awaited 1 Lakh rupee car
(actually a little over 1 lakh after tax) for the masses
and they call it “The People’s Car”. It’s a sweet
looking small car, just enough to take four people
around the city. 1 Lakh rupees roughly translate to
2500 rupees monthly installment and because of this
reason TATA is expect to sell record breaking
numbers and leave Indian roads blocked.

TATA Nano will hit the roads and as it is a definite threat to Maruti
800. TATA stated that the initial production of this car will be of
250,000 a year. After about four years of hard efforts TATA Nano (1
lakh rupee car) was on road now.

The introduction of the Nano received media attention due to its targeted
low price. The car is expected to boost the Indian economy, create
22
entrepreneurial-opportunities across India, as well as expand the Indian car
market by 65%. The car was envisioned by Ratan Tata, Chairman of the Tata
Group and Tata Motors, who has described it as an eco-friendly "people's
car". Nano has been greatly appreciated by many sources and the media for
its low-cost and eco-friendly initiatives which include using compressed-air
as fuel and an electric-version (E-Nano). Tata Group is expected to mass
manufacture the Nano, particularly the electric-version, and, besides selling
them in India, to also export them worldwide.
Critics of the car have questioned its safety in India (where reportedly
90,000 people are killed in road-accidents every year), and have also
criticized the pollution that it would cause (including criticism by Nobel
Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised
that it would definitely release Nano's eco-friendly models alongside the
gasoline model.
The Nano was originally to have been manufactured at a new factory in
Singur, West Bengal, but increasingly violent protests forced Tata to pull out
October 2008. Currently, Tata Motors is reportedly manufacturing Nano at
its existing Pantnagar (Uttarakhand) plant and a mother plant has been
proposed for Sanand Gujarat. The company will bank on existing dealer
network for Nano initially. The new Nano Plant could have a capacity of
500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to
match all the incentives offered by West Bengal government.

23
24
Currents facts

Today Advertising is one of the most common ways to make car buyer or
car enthusiast aware of the new car with special promotion price.
Another more important way of advertising is to create an image or
brand image. Take BMW Z3 for example, it was introduced in 1996 and
shortly the car has been used in the famous James Bond movie. Over the
years Tata Motors have been successful in creating their brand image.

The packaging, innovations, and quality control. Tata Motors provide

many innovative features to attract car lover. One of these innovations is
the Tata Safari 4X4 Dicor that has “Reverse Guide System”. A weather-
proof camera is fixed to the rear car to help the driver while reversing
the car.

There are various factors to determine a price of a car. These factors are
such as market condition (it can’t be too low or too high with the prices
of same vehicle from competitors, it has to be at par), cost incurred to
build a car, profit by company, dealer profit. Giving discount every
month and special promotion for certain type of vehicle also one of the
strong strategy use by Tata Motors. Discount can be made from
Company’s profit or from dealer’s profit at certain range.

Place of dealership does play an important role. The channel of

distribution, physical location, and dealership method of
distribution and sales is generally adopted. The distribution of
vehicle must be in a very systematic way, from the plant to
dealership and to end user. This is not only in India itself but
also to the world-wide dealership.

25
OUTLOOK OF INDUSTRY

The industry witnessed a change in demand dynamics in last

few years. The demand for LCVs in the <=3.5 tones segment
is rising at the cost of demand in 5 to 7.5 tones category,
while demand in 7.5 to 12 tones segment and 16.2 to 25
tones segment is booming at the cost of demand in 12 to
16.2 tones segment. Demand for trailers of >35.2 tones is
witnessing a surge while demand for semi-trailers in 26.4 to
35.2 tones segment is suffering. This structural shift in
demand dynamics is due to the evolution of Hub & Spoke
model of distribution, which is now adopted by
transportation players because of improved road
infrastructure and also the ban on trucks in many cities by
the authorities to tackle the traffic congestion issues.
According to the Hub & Spoke model, HCVs plying over the
highways to transport goods to different states and districts,
while MCVs are used in distributing goods to different cities
and the last leg of distribution in intra city is done by using
<=3.5 tonner vehicles

26
GLOBAL OPERATIONS
Tata Motors has been aggressively acquiring foreign
brands to increase its global presence. Tata Motors
has operations in the UK, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was
acquired in 2008. Tata Motors has also acquired from
Ford the rights to three other brand names: Daimler,
Lanchester and Rover. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South
Korea’s second largest truck maker. The rechristened
Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market,
while also exporting these products to several
international markets.
Today two-thirds of heavy commercial vehicle
exports out of South Korea are from Tata Daewoo. In
2005, Tata Motors acquired a 21% stake in Hispano
Carrocera, a reputed Spanish bus and coach
manufacturer, giving it controlling rights of the
company. Hispano’s presence is being expanded in
other markets. On Tata's 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) as well as
trucks (Novus). These models were jointly developed
with its subsidiaries Tata Daewoo and Hispano
Carrocera. In May, 2009 Tata unveiled the Tata World
Truck range jointly developed with Tata Daewoo.
They will debut in South Korea, South Africa, the
SAARC countries and the Middle-East by the end of
27
2009. In 2006, it formed a joint venture with the
Brazil-based Marco polo, a global leader in body-
building for buses and coaches to manufacture fully-
built buses and coaches for India and select
international markets. Tata Motors has expanded its
production and assembly operations to several other
countries including South Korea, Thailand, South
Africa and Argentina and is planning to set up plants
in Turkey, Indonesia and Eastern Europe. Tata also
franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal.
Tata has dealerships in 26 countries across 4
continents. Though Tata is present in many counties
it has only managed to create a large consumer base
in the Indian Subcontinent namely India, Bangladesh,
Bhutan, Sri Lanka and Nepal and has a growing
consumer base in Italy, Spain and South Africa.

The Government of India announced an

automobile policy in December 1997. The
policy required majority-owned subsidiaries of
foreign car firms to invest at least US$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

28
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 US$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.

29
Consumer Buying Decision Process

30
There are following five stages in consumer buying decision Process.

1. Problem identification:-
The buying process starts when the buyer
recognizes a problem or need. The need can be
triggered by internal or external stimuli.
Marketers need to identify the circumstances
that trigger a Particular need. By gathering
information from a number of consumers,
Marketers can identify the most frequent
stimuli that spark an interest in a product
category. They can then develop marketing
strategies that trigger consumer interest.

2. Information Search:-
The consumer tries to collect information
regarding various products/service. Through
gathering information, the consumer learns
about completing brands and their features.
Information may be collected form magazines,
catalogues, retailers, friends, family members,
business association, commercial, chamber of
commerce, telephone directory, trade fair etc.
Marketers should find out the source of
information and their relative degree
importance to the consumers.

31
3. Evaluation of
alternative:-
There is no single process used by all consumers by
one consumer in all buying situations. There is
several First, the consumer processes, some basic
concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits
from the product solutions. The marketer must know
which criteria the consumer will use in the purchase
decision.

4. Choice of purchasing
decision:-
From among the purchase of alternatives the
consumer makes the solution. It may be to buy or not
to buy if the decision is to buy. The other additional
decisions are:
Which types of bike he must buy from whom to buy a
bike? How the payment to be made? And so on.
The marketer up to this stage has tried every means
to influence the purchase behavior, but the choice is
properly consumers. In the evaluation stage the
consumer forms preferences among the brands in
the choice set. The consumer may also form an
intention to but the most preferred brand.

5. Post Purchase Behavior:-

After purchase the product, the consumer will
experience the same level of product. The Marketer’s

32
job not end when the product is buying must monitor
post-purchase satisfaction, post-purchase action, post-
purchase use and disposal.

Post Purchase Satisfaction:-

The buyer, S satisfaction is a function of
closeness between the buyer, S
expectation and the products Perceiver
performance. The larger the gap between
expectation and performance, the greater
the consumer dissatisfaction.

Post purchase Action:-

The Consumer, S satisfaction or
dissatisfaction with the product influence
subsequent behavior. If the consumer
satisfied, he or she will exhibit a higher
probability of purchasing the product
again. Dissatisfaction consumer may
abandon and return the product.

Post-Purchase Use or Disposal:-

The marketer should also monitor new
buyers use and dispose of the product. If
33
 the consumer store the product in a close,
the product is probably not very satisfying.
If the consumer throws the product away,
the marketer needs to know how they
dispose of it; especially it can be hurt the
environment.

Characteristic of Buyer
Behaviors
The chief characteristics of the buyer’s behaviors are as
Follow:-
(1) It consists of mental and physical
activities which consumers undertake to
get goods and services and obtain
satisfaction from them.

(2) It includes both observable activities such

as walking through the market to
examine merchandise and making a
purchase and mental activities-such as
forming attitudes, perceiving advertising
material, and learning to prefer particular
brands.

34
(3) Consumer behaviors are very complex
and dynamic to constantly changing. And
therefore, management need to adjust
with the change otherwise market may be
lot.

(4) The individuals specific behaviors in the

market place is affected by internal factor,
such as need , motives, perception, and
attitudes, as well as by external of
environment influences such as the family
social groups, culture, economics and
business influences.

PROBLEM
DEFINATION

 PROBLEM
DEFINATION
35
  SCOPE OF STUDY

 OBJECTIVE OF
STUDY

 LIMITATIONS OF
STUDY

PROBLEM DEFINATION

Consumer says something and does something.

There are many companies manufacturing
motorcycles into the market, at the same time as
there are many companies manufacturing
motorcycles, idea about thinking of customer on

36
whether, what, how, and for whom to purchase the
CAR.
Therefore, research is required to measure present
consumer buying behavior at the purchase of TATA
cars. So the researcher problem is to identify what
are the criteria that prospective customer takes into
consideration before buying the cars.

SCOPE OF STUDY

(1)The main scope of the study is depend to

consumer response

(2) It also analysis the benefits accruing to the

company as a result of those service.

(3) This study has been made to find the level

of satisfaction the Customer has regarding the
service provider by car place.

Limitations of study

(1) When the buyers are busy we can’t

get accurate data from them.

37
 (2) According to the time limit of our
project we can cover only the some
area.

(3) During survey some respondents

may not give answer in proper
manner.

OBJECTIVES OF STUDY

(1) To know market position of Tata

automobile in the market.

(2) To know consumer behavior for

purchase of four wheeler.

38
Questionnaire
 Questionnaire is a source of Primary Data.
39
  It is a simple way to collect data from general public
 Multiple choice questions were given to the
respondents and they were asked to fill their opinion.
 The data was then analyzed and inferences were
drawn on that basis.

Sample of a questionnaire

1. WHAT IS YOUR SALARY?

1 LAC 1 LAKH -3 LAKH 3LAKH-
5LAKH 5LAKH

2. WHICH VEHICLE DO YOU OWN?

________________________________________________________________________
______________

3. DID YOU RIDE SOME OTHER VEHICLE BEFORE THIS?

YES NO

4. WHAT IS YOUR EXPERIENCE FROM THE PREVOIUS VEHICLE?

SATISFIED NOT SATISFIED

5. WHICH IS THE MOST ESSENTIAL THING YOU PREFER WHILE

BYING VEHICLE?
PRICE MILEAGE POWER
STEERING OTHERS

6. DOES TV AD APPEAL YOU?

YES NO

7. DO YOU LIKE TV PROGRAMMES ON CAR?

YES NO

8. DOES BRAND VALUE AFFECT YOUR DECISION ON BUYING

VEHICLE?
YES NO

40
Research
methodology
Research Methodology: The data for the
project was collected from malls, customers at
showrooms, markets and from public also.

Sample Size: Sample size of 60 was taken

based on “convenient Simple Random
Sampling”.

Research Tools: The data was collected

through “Survey Questionnaire Method”.

Data Collection: Data was collected

through the following:-

 Primary sources: Questionnaire from

General public
 Secondary Sources: Magazines,
newspapers, Internet.

41
 ANALYSIS

 Sample size – 40
 Respondents:

 Owners of Santro – 9

 Owners of Zen estilo –

8

 Owners of Indica – 18

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  Owners of other
cars – 5

Q1) what do you own?

A) car B) Two Wheeler C) Nothing

From that it was found that:-

 20 people owned a car

 15 owned two wheelers and
 5 don’t nothing
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Q2) Which car do you own?

a) zen estilo b) santro c) indica d) others

From that it was found that:-

 8 people owns zen estilo

 18people owns indica
 9 people owns santro
 5 people owns others

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Q3) Are you satisfied with it?

A) Yes b) No

From that it was found that:-

 25 were satisfied and

 15 were not.

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(4) Car customers

46
Q5) How much do you spend on
maintenance on a monthly basis?

a) <2000 b) 2000-4000 c) >4000

From that it was found that:-

25 %spends below 2000

10% spends between 2000-4000
5 %spends above 4000

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(6) Sample of 30 customers, according to
their income.

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Q7)Name he car that comes first in your
mind when you think of small segment
car in India?

From that it was found that:-

 9said zen estilo

 8 said santro
 17said Indica
6 said others

Q8)Out of these which you will see first

when you will buy a car?

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From that it was found that:-

 12 people consider cost & perf. Before purchasing

a car.
 9 people consider perf.& style before purchasing a
car.
 8 people consider style before purchasing a car.
11 people consider cost before purchasing a car.

(9)Are you planning to buy a car within

next session?

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From that it was found that:-

 29 people want to purchase within 1 year

 11 people want to purchase in 1 month

(10)Factors affecting buying of customers

Power steering 7
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Mileage 15
Price 10
Others 8

FINDINGS & SUGESSTIONS

FINDINGS

 TATA MOTORS is number three in passenger

car market after maruti-suzuki & Hyundai.

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 Majority of the customers see TATA MOTORS
with savings.

 Most of the customers spend large sum of

money.

 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

Hyundai’s santro is still doing well in mid size
and small size segment so the INDICA 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.

SUGGESTIONS
Based on the findings from the analysis the
following suggestions could be made:

53
  Demo of the product should be made
available to Customers, since most of the
purchase decisions are based on it.

 Technical details should be made available

to the customers in the most accurate
numerical form.

 The Indica has remained a bestseller

throughout in the industry figuring in the
top 3 selling list of cars for most of the
years.

 The distribution channel should be more

efficient to cater the demand during peak
seasons like during dassraa, diwali etc .

The city is mostly dominated by the working

class like people employed in high court, AG
office( accountant general office) and
government school employees who this year
are getting more pay due to the
recommendations made by the sixth pay
commission so , the sales for mid size car can
be enhanced in this scenario.

SWOT Analysis - Tata Motors Limited

54
SWOT – Strengths, Weaknesses, Opportunities,
Threat

 The internationalization 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 program me
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 2007.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 2008, and the
companies have an agreement to build a pick-up
targeted at Central and South America.

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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.

 The CV segment is becoming highly competitive by

new player like Volvo, and rival M&M are coming with
new products to cater the TATA in the market as the
rural area has given thumps up to M&M during this
year.

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 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
operations more sustainable.
 The range of Super Milo fuel efficient buses are powered by
super-efficient, eco-friendly engines. The bus has optional
organic clutch with booster assist and better air intakes that will
reduce fuel consumption by up to 10%.
 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!
 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.

57
 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 globalizes and buys
into other brands this problem could be alleviated.

 Since the company has focused upon the commercial and small
vehicle segments, it has left itself open to competition from
overseas companies for the emerging Indian luxury segments.
For example ICICI bank and DaimlerChrysler have invested in a
new Pune based plant which will build 5000 new Mercedes-
Benz per annum. Other players developing luxury cars targeted
at the Indian market include Ford, Honda and Toyota. In fact
the entire Indian market has become a target for other global
competitors including Mahindra and Mahindra, Maruti Udyog,
General Motors, Ford and others

 Rising prices in the global economy could pose a threat to Tata

Motors Limited on a couple of fronts. The price of steel and
aluminum is increasing putting pressure on the costs of
production. Many of Tata's products run on Diesel fuel which is
becoming expensive globally and within its traditional home
market.

58
 Survey conducted by (C.S.O) Central statistical
organization

US based consultancy, keystone predicts that India will become world’s third largest
automobile market by 2030. Overall size expected to exceed 20 million with
compounded annual growth rate of over 12%.

59
 Released on: 1st
July, 2009
TATA Motors’s June 2009 DOMESTIC
SALES at 43,244 nos.

Tata Motors’ total sales (including exports) of Tata commercial and passenger
Vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year.
The company’s domestic sales of Tata commercial and passenger vehicles for the month
of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year.
Cumulative sales (including exports) for the company for the quarter at 123,113 nos.,
declined by 7%, compared to 131,733 nos. sold last year.

Commercial Vehicles
The Company’s sales of commercial vehicles in June 2009 in the domestic market were
26,205 nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales
were 16,256 nos., a growth of 17% over June 2008, while
M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of
15% over May 2009. Cumulative sales of commercial vehicles in the domestic market for
the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative
M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for
the quarter were 45,430 nos., a growth of 27% over last year.

Passenger Vehicles
The passenger vehicle business reported a total sale and distribution off take of 19,513
nos. (17,039 Tata + 2,474 Fiat) in the domestic market in June 2009, an 11% increase
compared to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8%
over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the
fifth consecutive month at sales of 10,210 nos. -- a growth of 19% over June 2008. The
Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth
of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range accounted for sales of
3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550
nos. of May 2009.

Exports
The Company’s sales from exports at 2,155 vehicles in June 2009 declined by 37%
compared to 3,431 vehicles in June 2008. The cumulative sales from exports for the
fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year.

60
61
 BIBLIOGRAPHY
Books:
1. Philip Kotler, Kevin Keller (2009),
Marketing Management (Thirteenth
Edition)
2. Marketing Management, The
McGraw.Hill
Company Rajan Saxena (Third
Edition)

MAGAZINES:
A) OUTLOOK BUSINESS (FEB, 2009)
B) BUSINESS STANDARD (April-July
2009)
C) 4P’S OF BUSINESS AND
MARKETING (June 2009)
D) BUSINESS TODAY - Pick and
Choose

INTERNET:
62
 1. Tata Motors' Official Website
2. Wiki - Tata Motors Ltd
8.
htttp://www.moneycontrol/com/tata
- group/Tata motors
9.
http://www.yahoofinance.com/tata
motors
10.http://www.carwale.com/research/c
ars

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