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Final Project Report on Tata Motors Crm

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    DECLARATIONI NAVJOT KAUR undersigned the student of BBA declare that the project report is

    my o n and has carried out under the guidance and super!ision of " #urther I

    declare that it has not $een su$mitted to any other uni!ersity of e%amination"

    &ate' (ign" Of (tudent

    PREFACE

    In this age of nec) to nec) competition* there is much importance gi!en to practical

    )no ledge" The theoretical )no ledge is not sufficient to understand the $oundless

    field of $usiness management"

    Today e!ery person ants to $e a master in the field they are in" The +ractical training is

    life of management student" In modern orld the importance of management is

    increasing day $y day" Industrial training pro!ide a student sufficient )no ledge to

    de!elop an education to connect theory and practical"

    (o to fulfil our purpose I ha!e done training at , -"

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    Acknowledgement

    ,."" the $eauty of the destination is half !eiled and the fragrance of the success half

    dull until the traces of all those enlightening the path are left to fly ith the ind

    spreading ord of than)fulness.-

    Keeping this in !ie / it ould $e unfair on my part if I don0t than) the

    mentioned fe " I e%press my sincere gratitude to 1mar)eting manager Tata

    2otors3 ho ga!e me the opportunity to get training in such a recogni4ed

    company" 5is guidance and )no ledge helped me to learn professionalism in the real

    sense"

    I ould li)e to e%press my deep sense of gratitude to * director I(2(* pune for

    pro!iding me such an en!ironment to achie!e the goals and to prosper in the corporate

    orld

    I am also grateful to my project guide 6ho e%tended his complete support

    to ma)e me deli!er my $est"

    7

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    TAB89 '

    SerialNo.

    Name Page No.

    1) Com an! Pro"ile # $ %

    &) 'i(torical Anal!(i( % 1*

    #) S+OT 1*$1&

    %) CR, At TATA ,OTORS 1#$1%

    -) Im lementation O" CR, 1-

    ) CR, Strateg! 1 $1/

    0) TATA ,OTORS 'R and Organi(ation For CR, &*

    2) Im lementation O" IT and Tec3nological Sol4tion atTATA ,OTORS

    &1$

    /) Di(tri54tion Strateg! $#&

    1*) TATA 64(ine(( E7cellence ,odel ##$%0

    11) Organi(ational Learning %2$-*

    1&) Anal!(i( -1$ 2

    1#) S4gge(tion( /

    1%) Re"erence 0*

    :

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    CO,PAN8 PROFILE

    Re9iew o" literat4re on t3e com an!

    Tata ,otor(

    Tata 2otors 8imited 1formerly )no n as T98;O 1TATA 9ngineering and 8ocomoti!e

    ;ompany3* 1 NYSE ' TTM3 < is India =s largest passenger automobile and commercial vehicle

    manufacturing company" It is a part of the Tata Group * and has its head>uarters in

    Mumbai * Maharashtra "

    One of the orld=s largest manufacturers of commercial vehicles and )no n for its

    hatchback passenger vehicle Tata Indica * Tata 2otors has its manufacturing $ase in

    Jamshedpur * Lucknow * une and Singur " The !I"# ran)ed it as the orld=s 7?st largest

    !ehicle manufacturer* $ased on figures for 7@@ " $%&

    Tata 2otors as esta$lished in ? CD* hen the company $egan ma)ing trains " Tata

    2otors as first listed on the NYSE in 7@@C" Tata 2otors gained 's( :7@ $illion during

    C

    http://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/lcddata.html?ticker=TTMhttp://www.nyse.com/about/listed/lcddata.html?ticker=TTMhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Commercial_vehiclehttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Hatchbackhttp://en.wikipedia.org/wiki/Passenger_vehiclehttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/International_Organization_of_Motor_Vehicle_Manufacturershttp://en.wikipedia.org/wiki/Tata_Motors#_note-0http://en.wikipedia.org/wiki/Trainhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/INRhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/lcddata.html?ticker=TTMhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Commercial_vehiclehttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Commercial_vehicleshttp://en.wikipedia.org/wiki/Hatchbackhttp://en.wikipedia.org/wiki/Passenger_vehiclehttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Jamshedpurhttp://en.wikipedia.org/wiki/Lucknowhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/International_Organization_of_Motor_Vehicle_Manufacturershttp://en.wikipedia.org/wiki/Tata_Motors#_note-0http://en.wikipedia.org/wiki/Trainhttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/INR
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    7@@?

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    that comes ith the Tata trust ill complement this* and #iat is confident of ser!ing its

    customers $etter"-

    'i(torical anal!(i(

    6ackgro4nd

    Tata 2otors is a company of the Tata and (ons Hroup* founded $y Jamshet2i Tata " It is

    currently headed $y 'atan Tata "

    The company has the or)force of 7C@@@ employees or)ing in its four plants and

    other regional and 4onal offices across the country"Tata 2otors= range of passenger cars is still not comprehensi!e $y international

    standards" In commercial !ehicles* Tata 2otors commands an imposing DE mar)et

    share in the domestic hea!y commercial mar)et" The company is trying to modernise its

    range of commercial !ehicles" Tata 2otors hi!ed off its !ehicle finance $usiness into a

    separate su$sidiary* T28 #inancial (er!ices 1T28#(3* in (eptem$er 7@@ "

    Time line and mile(tone(

    Tata 2otors launches its first truc) in colla$oration ith Mercedes34en5

    http://en.wikipedia.org/wiki/Jamshetji_Tatahttp://en.wikipedia.org/wiki/Jamshetji_Tatahttp://en.wikipedia.org/wiki/Ratan_Tatahttp://en.wikipedia.org/wiki/Mercedes-Benzhttp://en.wikipedia.org/wiki/Image:Tatamilestone_1.jpghttp://en.wikipedia.org/wiki/Jamshetji_Tatahttp://en.wikipedia.org/wiki/Ratan_Tatahttp://en.wikipedia.org/wiki/Mercedes-Benz
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    1/ *$1/2

    Tata 2otors is the 7nd largest commercial !ehicle ma)er in India" 6orld o!er it is the

    orld=s fifth largest medium and hea!y commercial !ehicle manufacturer" It started its

    journey in ? @ ith the manufacturing of first commercial !ehicle 1a copy of a &aimler

    Ben4 model3 in +une" It too) fi!e years for the company to $egin the commercial production of hea!y commercial Vehicles" ;onsidering the road infrastructure of the

    country hich does not support hea!y !ehicles the company adopted a route for light

    commercial !ehicles 18;V3" It came out ith its first 8;V* Tata C@ * in ? F "

    1/20$1//

    Tatamo$ile introduced in ? F " +ost li$erali4ation* in order to e%pand rapidly* the

    company adopted the route to joint !entures" In ? : it signed ith ;ummins 9ngine

    ;o"* Inc"* for the manufacture of high horsepo er and emission friendly diesel engines"

    It as an effort made to reduce the pollution in the e%isting Tata engines and to produce

    more en!ironmentally friendly engines" #urthering the trail of JVs it signed a joint

    !enture agreement ith Tata 5olset 8td"* UK* for manufacturing tur$ochargers to $e

    used on ;ummins engines"

    1//0$&**

    In 7@@@* it launchedcompressed natural gas 1;NH3 $uses and also filled the product line

    gap through the introduction of the ??@ !ehicle hich is an intermediate commercial

    !ehicle and is useful for medium tonnage loads" +ost 7@@@* the company introduced a

    !ariety of ne models" It introduced the 9%< series !ehicles ith high tonnage capacity

    and high pic) up and also came out ith the entirely ne 8;V 17@ &I3 ith direct

    ignition technology to cater to the customers= re>uiring one and same !ehicle for

    commercial as ell as personal use"

    Tata Novus

    In 7@@C* it ac>uired the &ae oo ;ommercial Vehicle ;ompany of (outh Korea" The

    reasons $ehind the ac>uisition ere' ;ompany0s glo$al plans to reduce domestic e%posure The domestic commercial

    !ehicle mar)et is highly cyclical in nature and prone to fluctuations in the

    domestic economy" Tata 2otors has a high domestic e%posure of CE in the

    25;V segment and FCE in the light commercial !ehicle 18;V3 segment"

    (ince the domestic commercial !ehicle sales of the company are at the mercy of

    the structural economic factors* it is increasingly loo)ing at the international

    http://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Tata_Novushttp://en.wikipedia.org/wiki/Compressed_natural_gashttp://en.wikipedia.org/wiki/Tata_Novus
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    mar)ets" The company plans to di!ersify into !arious mar)ets across the orld

    in $oth 25;V as ell as 8;V segments" To e%pand the product portfolio Tata 2otors recently introduced the 7D2T

    HV6 Tata No!us from &ae oo0s 1(outh Korea3 1T&;V3 platform" Tata plans to

    le!erage on the strong presence of T&;V in the hea!yuired 7?E sta)e in ,ispano "arrocera (A* (panish bus manufacturing company and

    introduced its high

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    as $uilt ith a load $ody produced $y #utoline Industries" $6& By 7@@D*#utoline as

    producing :@@ load $odies per day for Tata 2otors" #utoline

    In 7@@D* Tata 2otors $ecame the only major engine manufacturer in the orld 1aside

    from a 4riggs 9 Stratton emissions test3 to e%press any formal interest in the tur$ulenceuality" The terminal life policy for commercial !ehicles and mo!e to ard

    international ta%ing policies lin)ed to age of !ehicles* are steps in the right direction

    hich ill lead to increased sales for Tata motors ;ommercial !ehicle di!ision"

    http://en.wikipedia.org/wiki/Autolinehttp://en.wikipedia.org/wiki/Tata_Motors#_note-2http://en.wikipedia.org/wiki/Autolinehttp://www.autolineind.com/our_story.htmhttp://en.wikipedia.org/wiki/Briggs_%26_Strattonhttp://en.wikipedia.org/wiki/Briggs_%26_Strattonhttp://en.wikipedia.org/wiki/Cylinder_headhttp://en.wikipedia.org/w/index.php?title=Somender_Singh&action=edit&redlink=1http://en.wikipedia.org/wiki/Mysorehttp://en.wikipedia.org/wiki/Tata_Indigohttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Pickup_truckhttp://en.wikipedia.org/wiki/Pickup_truckhttp://en.wikipedia.org/wiki/Pickup_truckhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Southeast_Asiahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Ivecohttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Bidderhttp://en.wikipedia.org/wiki/Jaguarhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Autolinehttp://en.wikipedia.org/wiki/Tata_Motors#_note-2http://en.wikipedia.org/wiki/Autolinehttp://www.autolineind.com/our_story.htmhttp://en.wikipedia.org/wiki/Briggs_%26_Strattonhttp://en.wikipedia.org/wiki/Cylinder_headhttp://en.wikipedia.org/w/index.php?title=Somender_Singh&action=edit&redlink=1http://en.wikipedia.org/wiki/Mysorehttp://en.wikipedia.org/wiki/Tata_Indigohttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Fiathttp://en.wikipedia.org/wiki/Diesel_enginehttp://en.wikipedia.org/wiki/Pickup_truckhttp://en.wikipedia.org/wiki/Pickup_truckhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Southeast_Asiahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/Turkeyhttp://en.wikipedia.org/wiki/Saudi_Arabiahttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Ivecohttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Thailandhttp://en.wikipedia.org/wiki/Joint_venturehttp://en.wikipedia.org/wiki/Ford_Motor_Companyhttp://en.wikipedia.org/wiki/Bidderhttp://en.wikipedia.org/wiki/Jaguarhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Land_Roverhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/India
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    9ffect of Ho!ernment +olicy on Tata 2otors ;V &i!ision ;ommercial Vehicles

    segment sector has $een at the forefront of the strong sho ing $y the automoti!e

    industry o!er the past fe years" #ollo ing factors ha!e led to gro th in sales' The cut in e1cise dut. that ena$led manufacturers li)e Tata 2otors to reduce

    prices

    The attracti!e financing offers and free$ies ena$led $y lo interest rate policies $y Ho!ernment

    the need to transport higher !olumes of agricultural and industrial goods

    8o interest rates

    Tata Xover

    Ne auto policy considered $y Government o; India last announced an automo$ile policy

    in &ecem$er ? " The policy re>uired majority

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    orld class capa$ilities" There is huge demand in domestic mar)ets due to infrastructure

    de!elopments and Tata 2otors is a$le to le!erage its )no ledge of Indian mar)et" There

    are fa!ora$le Ho!ernment polices and regulations to $oost the auto industry i"e"

    Incenti!e for R &"

    SWOT

    S+OT Anal!(i( $ Tata ,otor( Limited

    The company $egan in ? CD and has produced more than C million !ehicles" Tata

    2otors 8imited is the largest car producer in India" It manufactures commercial and

    passenger !ehicles* and employs in e%cess of 7:*@@@ people"

    Strengt3(

    The internationalisation strategy so far has $een to )eep local managers in ne

    ac>uisitions* and to only transplant a couple of senior managers from India into

    the ne mar)et" The $enefit is that Tata has $een a$le to e%change e%pertise" #or

    e%ample after the &ae oo ac>uisition the Indian company leaned or)

    discipline and ho to get the final product =right first time"= The company has a strategy in place for the ne%t stage of its e%pansion" Not only

    is it focusing upon ne products and ac>uisitions* $ut it also has a programme of

    intensi!e management de!elopment in place in order to esta$lish its leaders fortomorro "

    The company has had a successful alliance ith Italian mass producer #iat since

    7@@ " This has enhanced the product portfolio for Tata and #iat in terms of

    production and )no ledge e%change" #or e%ample* the #iat +alio (tyle as

    launched $y Tata in 7@@ * and the companies ha!e an agreement to $uild a pic)uality and lean production"

    (ustaina$ility and en!ironmentalism could mean e%tra costs for this lo

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    CRM at TATAMOTORS

    #aced ith increasing competition from a$road* a cyclical $usiness en!ironment* and

    the challenge of a idely dispersed dealer net or)* Tata 2otors implemented (ie$el

    Automoti!e* a comprehensi!e customer relationship management 1;R23 solution

    designed specifically for companies in the automoti!e industry"

    (eamlessly integrated ith Tata 2otors0 dealer management system and (A+ $ac)uired as

    ell as the specific use of the !ehicles" The company ser!es the customers ith medium

    and hea!y !ehicles* light !ehicles* small !ehicles and $usses" Tata 2otors also suppliesspecially designed !ehicles to the armed forces" On $asis of specific use the company

    segments the customers $ased on types of !ehicles li)e rigid truc)s* tractor trailers and

    tippers"

    In the $us segment the !arious state transport corporations are the $iggest customers of

    the company" Tata 2otors has on Rs 77

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    company ill also maintain the $uses for ?7 years" It had earlier also supplied D@ such

    $usses to &T; in 7@@ " The +areto principle of the 7@E of the customers $eing

    responsi$le for F@E of the $usiness is true ith the $ul) of the $us sales coming from

    small num$er of state transport corporation" Apart from the !arious state transport

    corporations the company also supplies many $usses to many pri!ate $us operators"

    Pa((enger =e3icle( Tata motors is also a !ery important player in the passenger !ehicle

    segment of the automo$ile sector" The company entered the passenger !ehicle segment

    in late ? @s and enjoys around ? E share in this segment"

    In the passenger !ehicle segment the main customer segmentation is $ased on the price

    of the cars" Indian customers are highly discerning* educated and ell informed" They

    are price sensiti!e and put a lot of emphasis on !alue for money" ;ars priced $elo Rs"

    D@@*@@@ account for nearly F@E of the mar)et" Vehicles priced $et een Rs" :@@*@@@

    D@@*@@@ form the largest segment in the passenger car mar)et"

    The data a$out the sales of the cars in !arious

    segments is sho n in the adjoining graph"

    Tata motors also segments the customers $ased

    on the type of !ehicles they $uy" They offer

    their customers a ide !ariety of choices fromorld0s cheapest car the Rs" ? 8a)h Tata Nano

    to the super lu%ury $rands Jaguar and 8and

    Ro!er"

    9!en in the

    passenger car

    segment thereare some $ig

    customers" Tata

    Indica is !ery

    popular among

    ta%i operators

    $ecause of its7@

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    good fuel efficiency" The (UVs from Tata 2otors are also !ery popular ith call

    centres to ferry their employees as they are !ery spacious and comforta$le" The ta%i

    operators and call centres are major customer segment for Tata 2otors"

    TATA MOTORS % &R an" Or$ani'ation

    for CRM

    E7ec4ti9e Selection Sc3eme ;ESS)

    Tata 2otors has al ays stri!ed to ards e%cellence $oth in its efforts to ards totalintegration as ell as in recognising its talented employees" The ;ompany is constantlycreating prestigious programmes to re ard and retain its outstanding employees" The9%ecuti!e (election (cheme is one such programme* hich is highly sought after $yTata 2otors employees" It is a matter of pride and prestige to $e a part of the 9((selection process and emerge a inner"9(( is a fast trac) programme for accelerated gro th of high potential professionals"This facilitates their early ad!ancement to challenging and !isi$le assignments througha !ery systematic procedure" The selection in!ol!es a : stage process'S 6ritten TestS +o er Inter!ieS Assessment ;entre

    (hortuired to go through an inter!ie ith the e%ecuti!edirectors";andidates selected gain a huge lead in terms of promotion and learning" They are

    promoted to 2anager=s le!el there$y sa!ing almost ?@ to ?: years of or) time" Thesuccessful candidates are relie!ed from their current jo$s and put on !arious project

    $ased training programmes under the guidance of senior managers in the ;ompany" Ifthe candidates do not possess management education* they undergo a C months 29+ atII2* Ahmeda$ad"After successful completion of training the candidates are mandatorily rotated acrossdepartments to ac>uire general management s)ills"

    7?

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    The 9(( is a je el in Tata 2otors o!erall profile as it pro!ides a platform for e!eryemployee of the ;ompany to perform and achie!e ma%imum potential"

    Implementation of IT an" Technolo$icalSolutions at TATA MOTORS

    Tata ,otor( Ltd. Scale( 4 IT Ser9ice ,anagement to S4 ort:lo5ali>ation

    The highly respected Tata 2otors 8td" has a strong tradition of entrepreneurship" Thecompany0s $usiness strategy calls for reaching $eyond the $orders of India to enter nemar)ets for its Nano* the inno!ati!e small car for the ur$an middle class"One of the major dri!ers of success at Tata 2otors 8td" 1T283 is its a$ility to fullye%ploit information technology to dri!e $usiness goals" The company as an earlyadopter of ;A& and ;A2 systems to speed the design of the Nano" The company also

    uses (ie$el (ystems to manage its !ast customer relationship net or) and (A+ for allcritical $usiness ser!ices* such as logistics* supplier relations management* customerrelationship management* human resources 15R3* and finance"IT is an integral part of e!ery $usiness process from design to deli!ery and the po er ofIT has $een e%tensi!ely le!eraged for the Nano project" The design processes used moredigital content than e!er $efore" (tateuately" 5o e!er* a fle%i$le ser!iceuired to lin) the silos and pro!ide a comprehensi!e a !ie of the IT landscape

    underlying a gi!en $usiness process"To ma)e this frame or) a reality* T28 decided to adopt IT ser!ice managementconcepts outlined in the I(O 7@@@@'@D international standards* as ell as $est practicesoutlined in the IT Infrastructure 8i$rary 1ITI8 3 Version :" In addition* the companydecided to esta$lish a ser!ice

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    *)TTIN +MC SOL)TIONS TO ,OR-

    B2; has pro!ided !isi$ility into the entirety of ser!ices components across $usiness process chains" It has also integrated the !arious IT ser!ice management disciplines intoa single* unified solution"

    T28 started ith the outuirements for ensuring segregation of responsi$ilities ere met

    $y allocating responsi$ilities for recording* classification* and routing $y one !endor*

    7:

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    and closing !erification* customer satisfaction assurance* and performance reporting $yanother"

    CLIM+IN T&E IT SERVICE MANA EMENT MAT)RIT!LA..ER

    B2; solutions ha!e helped T28 ma)e significant progress to ard reaching the top ofthe IT ser!ice management maturity ladder" The applications* hich paid for themsel!es

    ithin the first year* are deli!ering >uantifia$le $enefits to T28"The applications ha!e $rought greater efficiency to the IT en!ironment* ena$ling thestaff to dramatically reduce the num$er of trou$le calls" #or e%ample* calls related todes)tops are do n C@ percent* calls from supplier relationship management are do n F@

    percent* and ser!er support calls are do n eight percent"2ost importantly* $y )eeping critical systems a!aila$le and operating at pea)

    performance* the company reduced the de!elopment cycle for the Tata Nano comparedith earlier platforms ena$ling the company to get this e%citing ne offering to mar)et

    faster and at a lo er cost"

    & Di(tri54tion Strateg!? C3annel( o" t3e Tata ,otor( and Fiat in India

    Di(tri54tion o" t3e rod4ct

    Di(tri54tion ,et3od

    Di(tri54tion alwa!( take( lace t3ro4g3 a c!cle 54t it i( di""erent wit3 t3e

    rod4ct(. T3ere are (e9eral (te ( w3ic3 com lete t3e entire c!cle. It 4(4all! (tart(

    wit3 man4"act4rer t3en to di(tri54tor and t3en "inall! reac3e( in t3e 3and o"

    con(4mer. T3i( i( t3e main c!cle w3ic3 i( 4(ed glo5all!. Retail ma! take( lace

    5e"ore it reac3e( to t3e con(4mer.

    ,AN@FACT@RER DISTRI6@TOR CONS@,ER

    1(t di(tri54tion c3annel

    1. In this type of channel the company uses its sales representati!es to deal ith the

    dealers directly" The dealers place the order through the sales representati!es ho !isit

    them periodically* and the products are deli!ered directly from the company"

    7C

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    (ome companies appoint &irect &ealers ho act as their #ranchisee Outlets or their

    9%clusi!e sho rooms"

    &nd di(tri54tion c3annel

    7" In this channel of distri$ution the company appoints distri$utors on the $asis of

    &istrict +opulation No of &ealers to $e handled $y one distri$utor" The area of

    operation and its potential is also ta)en into consideration"

    (ome of the companies ma)e the distri$utor totally responsi$le from appointing the

    dealers to pro!iding after sales ser!ice"

    #rd di(tri54tion c3annel

    #. In this channel of distri$ution the company appoints &istri$utors as ell as &irect

    &ealers" The company appoints distri$utors to deal ith small dealers ho order small

    >uantities" 6ith the dealers ho ha!e good potential and sales the company deals

    directly"

    %t3 di(tri54tion c3annel

    7D

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    %. In this channel the company appoints a ; # agent ho acts on $ehalf of the

    company" The ; # agent is totally responsi$le for appointment of &istri$utors and

    &irect &ealers" 5e sells to $oth the &istri$utors and the &irect &ealers at the same rates"

    &I(TRIBUTION N9T6ORK TATA 2OTOR(

    TI9R I

    TI9R I

    7

    TATA ,OTORS

    (ystemIntegrators

    &istri$utors

    C@STO,ER

    Resellers

    O n sales force

    VO8U29

    R9(988 ErR

    ValueResellers

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    C'ANNEL STR@CT@RE Scenario 1 Scenario &

    ;ompany0s arehouse ;ustomer

    1+lacing

    Order 1&irect $illing3

    &irectly3

    ;ustomer

    To sa!e the consumer from paying e%tra amount in the form of ta%es and duties aconsumer can directly place an order ith the Tata 2otors arehouse is a pictorial

    representation of the same* also there may$e a case here all the C or any one of the

    national &ealers ha!e arehouses in (ingapore and consumer places order ith these

    distri$utor then in that case these distri$utors ill place the order to Tata 2otors hich

    ill ha!e direct $illing ith the distri$utors and distri$utors ill ha!e direct $illing ith

    the consumer"

    'ow do t3e "ini(3ed rod4ct( o" !o4r com an! mo9e "rom !o4r end to con(4mer (

    endB

    In this distri$ution net or) a customer ith the small re>uirement reaches the reseller

    ho $uys the product from the $ig distri$utors li)e Ingram* Redington*Tech pacific and

    iris"

    'ow t3e "ini(3ed rod4ct( mo9e( "rom Tata ,otor( end to con(4mer ( enduirement reaches the reseller

    ho $uys the product from the $ig distri$utors li)e Ingram* Redington* Tech pacific and

    iris"

    This model is dra n to sho that for named accounts or $ig $usiness opportunities it is

    the companies0 o n sales force and system integrators 1!alue resellers3* hich hunts

    do n the prospecti!e $usiness"

    Di(tri54tion C3annel(

    ;hannel (tructure

    ?" Outside +une

    7F

    +)SINESS

    SALESFORCE

    =AL@ERESELLER

    Tata,otor(

    ;onsumer

    Retailer

    &istri$uter

    ; #

    Tata 2otor Organi4ation

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    &. There are ? ; # and D@ distri$utors ho directly deal ith Tata 2otor"

    #unctions performed $y different channel mem$er

    ?" The main functions of different channel mem$ers are to supply goods* to achie!e

    targets and to increase sales"

    7" One of the main functions of ; # is to achie!e the targets assigned to them" They are

    responsi$le for all the acti!ities of their areas":" The sale of other goods including the sale of its entire outlet is around ?D@ crores"

    Selection o" C3annel mem5er(< $

    ;hannels mem$ers are selected if the follo ing facilities are a!aila$le'ue if it is local payment and &emand &rafts if it is central

    payment" #rom some distri$utors Tata 2otor also ta)e cash also $ut al ays try to a!oid

    it" No credit facilities are gi!en to any distri$utor or ; #"

    Tata 2otor )eep some $lan) che>ues from some distri$utor and ; # e!en $efore

    ta)ing the order and use the che>ue after deli!ering the goods"

    &istri$utor and ; # mostly sale goods on credit $asis hich !aries from one to

    another"Tata 2otor gi!e < E discount to ; # and distri$utor" No margin is gi!en to them" But

    they gi!e margin of ?@

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    To promote sale Tata 2otor gi!e e%tra discount of 7

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    Re( on(i5ilitie( o" t3e (ale( er(on

    To supply goods"

    To ma)e ne customers" To $ring the order from retailers of their area"

    To promote Tata 2otor Tata ;ar"

    To report a$out the sale"

    Per"ormance A rai(al

    The manager on the targets $asis chec)s the performance of the sales person" The

    performance appraisal is chec) on monthly $asis" It is chec) as regard to achie!e target"

    The sales persons gi!e daily report to the manager and on that $asis the performance is

    chec)ed and ne target is assigned"

    F4nction( er"ormed 5! di""erent c3annel mem5er

    The main functions of different channel mem$ers are to supply goods and

    gi!e monthly report in the organi4ation"

    The channel mem$ers also supply goods in the outlets of the Tata 2otor

    India"

    They fre>uently !isit outlet of Tata 2otor India ithin Raipur and outsideRaipur to chec) the sales and hether the target is achie!ing or not"

    They also promote Tata 2otor India Tata ;ar"

    The main role of sho room is to supply goods to the area that are assign to

    them"

    They are responsi$le for achie!ing the target assign to them"

    Selection o" C3annel mem5er(< $;hannels mem$ers are selected if the follo ing facilities are a!aila$le'" )m"

    Fig4re 1*< Li(ten and learn

    C:

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    E#ecution E#cellence

    Customer Relationships

    Fig4re 11 < Relation(3i ,anagement Sale( Proce(( Im ro9ement

    Fig4re 1& < C4(tomer Sati("action Im ro9ement Proce((CC

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    5R #ocus

    Attract the HOO& Ad!ance the B9TT9R Retain the B9(T

    'R =i(ion and ,i((ion

    9nhance and maintain 5uman ;apital* hich ill ma)e the Organisation a orld class player and further the interests of all sta)eholders

    (ource* de!elop and maintain 5uman ;apital* hich ill dri!e the culture ofcustomer focus* high performance and seamlessness"

    ;reate* learn and implement $est in class 5R practices and processes in pursuitof e%cellence"

    Retain and attract the talent $y impro!ing the $rand through employee delightand loyalty"

    Impro!e ;ommunity friendliness"

    +ork Str4ct4re(

    ;oncept of #actories and ;entres of 9%cellence 1;G3 ;ross

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    o 9mployee 6elfare (er!ices

    ,anage Proce((e(

    Enter ri(e Proce(( ,odel

    Fig4re 1# < Enter ri(e Proce(( ,odel

    C

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    Fig4re 1% < =al4e C3ain =al4e S!(tem

    EL11$,an4"act4ring

    Fig4re 1- < EL11$,an4"act4ring

    C

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    EL11$*& Prod4ce =e3icle(? Aggregate(? Com onent(

    Fig4re 1 < EL11$*& Prod4ce =e3icle(? Aggregate(? Com onent(

    CF

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    Operational Improvements

    Achie!ed through T+2 +o)a Xo)e

    Kai4en D

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    Or$anisational Learnin$

    Trainin$ to e#cel

    T6E, C3am ion(

    TB92 ;hampions are ;5ANH9 AH9NT(Three

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    Fig4re 12 < nowledge ,anagement Str4ct4re

    D?

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    A diagram ill4(trating t3e (tr4ct4re o" Indian a4tomo5ile Ind4(tr!

    D7

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    ANAL8SIS

    D:

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    Ann4al Income

    Annual income is al ays considered to $e an important factor in selection of the target

    mar)ets for any company" As Tata Geta is the middle class segment* so the customers

    earning less than Rs ?*D@*@@@ is a$out 7@E* the customers lying $et een Rs?*D@*@@@ to

    Rs 7*D@*@@@ is a$out :DE* those that in Rs 7*D@*@@@ to Rs :*D@*@@@ is 7DE and that

    a$o!e Rs :*D@*@@@ is 7@ E"

    By this ay e can conclude that at most the customers hich are called to $e the

    essence of the middle class o n Tata< Geta"

    DC

    Less than Rs,150,000

    Rs.1,50,000 -Rs2,50,000

    Rs. 2,50,000 -Rs3,50,000

    Above Rs.3,50,000

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    =e3icle 6rand

    9!ery company desires itself to $e in the house of its target customers"The customers

    hom I sampled here mostly o ing one or t o cars"In most of the middle class

    segments there ere a$out 7@E 2aruti cars*7DE 5yundai cars * here as CDE as

    constituted $y Tata cars and 2ahindra and other section cars had a share of DE each " I

    can here ma)e a clear cut analysis that Tata

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    a. S+OT

    S+OT Anal!(i( $ Tata ,otor( Limited

    The company $egan in ? CD and has produced more than C million !ehicles" Tata

    2otors 8imited is the largest car producer in India" It manufactures commercial and

    passenger !ehicles* and employs in e%cess of 7:*@@@ people"Strengt3(

    The internationalisation strategy so far has $een to )eep local managers in ne

    ac>uisitions* and to only transplant a couple of senior managers from India into

    the ne mar)et" The $enefit is that Tata has $een a$le to e%change e%pertise" #or

    e%ample after the &ae oo ac>uisition the Indian company leaned or)

    discipline and ho to get the final product =right first time"= The company has a strategy in place for the ne%t stage of its e%pansion" Not only

    is it focusing upon ne products and ac>uisitions* $ut it also has a programme of

    intensi!e management de!elopment in place in order to esta$lish its leaders for

    tomorro " The company has had a successful alliance ith Italian mass producer #iat since

    7@@ " This has enhanced the product portfolio for Tata and #iat in terms of

    production and )no ledge e%change" #or e%ample* the #iat +alio (tyle as

    launched $y Tata in 7@@ * and the companies ha!e an agreement to $uild a pic)uantities" 6ith the dealers ho ha!e good potential and sales the company deals

    directly"

    %t3 di(tri54tion c3annel

    %. In this channel the company appoints a ; # agent ho acts on $ehalf of the

    company" The ; # agent is totally responsi$le for appointment of &istri$utors and

    &irect &ealers" 5e sells to $oth the &istri$utors and the &irect &ealers at the same rates"

    @

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    DISTRI6@TION NET+OR TATA ,OTORS

    TI9R I

    TI9R I

    ?

    TATA ,OTORS

    (ystemIntegrators

    &istri$utors

    C@STO,ER

    Resellers

    O n sales force

    VO8U29

    R9(988 ErR

    ValueResellers

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    C'ANNEL STR@CT@RE Scenario 1 Scenario &

    ;ompany0s arehouse ;ustomer

    1+lacing

    Order 1&irect $illing3

    &irectly3

    ;ustomer

    To sa!e the consumer from paying e%tra amount in the form of ta%es and duties aconsumer can directly place an order ith the Tata 2otors arehouse is a pictorial

    representation of the same* also there may$e a case here all the C or any one of the

    national &ealers ha!e arehouses in (ingapore and consumer places order ith these

    distri$utor then in that case these distri$utors ill place the order to Tata 2otors hich

    ill ha!e direct $illing ith the distri$utors and distri$utors ill ha!e direct $illing ith

    the consumer"

    'ow do t3e "ini(3ed rod4ct( o" !o4r com an! mo9e "rom !o4r end to con(4mer (

    endB

    In this distri$ution net or) a customer ith the small re>uirement reaches the reseller

    ho $uys the product from the $ig distri$utors li)e Ingram* Redington*Tech pacific and

    iris"

    'ow t3e "ini(3ed rod4ct( mo9e( "rom Tata ,otor( end to con(4mer ( enduirement reaches the reseller

    ho $uys the product from the $ig distri$utors li)e Ingram* Redington* Tech pacific and

    iris"

    This model is dra n to sho that for named accounts or $ig $usiness opportunities it is

    the companies0 o n sales force and system integrators 1!alue resellers3* hich hunts

    do n the prospecti!e $usiness"

    Di(tri54tion C3annel(

    ;hannel (tructure

    ?" Outside +une

    :

    +)SINESS

    SALESFORCE

    =AL@ERESELLER

    Tata,otor(

    ;onsumer

    Retailer

    &istri$uter

    ; #

    Tata 2otor Organi4ation

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    #. There are ? ; # and D@ distri$utors ho directly deal ith Tata 2otor"

    #unctions performed $y different channel mem$er

    ?" The main functions of different channel mem$ers are to supply goods* to achie!e

    targets and to increase sales"

    7" One of the main functions of ; # is to achie!e the targets assigned to them" They are

    responsi$le for all the acti!ities of their areas":" The sale of other goods including the sale of its entire outlet is around ?D@ crores"

    Selection o" C3annel mem5er(< $

    ;hannels mem$ers are selected if the follo ing facilities are a!aila$le'ue if it is local payment and &emand &rafts if it is central

    payment" #rom some distri$utors Tata 2otor also ta)e cash also $ut al ays try to a!oid

    it" No credit facilities are gi!en to any distri$utor or ; #"

    Tata 2otor )eep some $lan) che>ues from some distri$utor and ; # e!en $eforeta)ing the order and use the che>ue after deli!ering the goods"

    &istri$utor and ; # mostly sale goods on credit $asis hich !aries from one to

    another"

    Tata 2otor gi!e < E discount to ; # and distri$utor" No margin is gi!en to them" But

    they gi!e margin of ?@

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    (ale persons of ; # and distri$utors go to the retailers of their areas and $ring the order

    daily" After that they gi!e order in the ;orporate Office of Tata 2otor in Raipur to the

    general manager" #rom corporate office general manager gi!e order in the factory"

    the order is ready to deli!er and confirming from the corporate office* the goods are

    deli!ered in the truc)s"

    Order ithin Raipur and the places near Raipur deli!ered ithin 7C hours"Order outside Raipur deli!ered according to the distance" It ta)es from 7C hours to 7

    hours"

    9!ery distri$utor and ; # has a fi%ed day in a ee) to gi!e order"

    +are3o4(ing

    Tata 2otor has its o n arehouse* hich is manage $y its o n staff" The order of Tata

    2otor is deli!ered $y truc)" Tata 2otors pay e%penses for transportation from hich the

    Tata 2otor deals directly"

    Sale( "4nctioning< $

    #actors ta)en into account hile assigning targets and territories

    +opulation of the area"

    Income of the consumers in that area"

    (ales during festi!al seasons"

    Area co!er"

    Target(

    Targets are decided $y the o ner of the Tata 2otor for e!ery distri$utor and ; #"

    9!ery year targets are increased $y ?@

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    Per"ormance A rai(al

    The manager on the targets $asis chec)s the performance of the sales person" The

    performance appraisal is chec) on monthly $asis" It is chec) as regard to achie!e target"

    The sales persons gi!e daily report to the manager and on that $asis the performance is

    chec)ed and ne target is assigned"

    F4nction( er"ormed 5! di""erent c3annel mem5er The main functions of different channel mem$ers are to supply goods and

    gi!e monthly report in the organi4ation"

    The channel mem$ers also supply goods in the outlets of the Tata 2otor

    India"

    They fre>uently !isit outlet of Tata 2otor India ithin Raipur and outside

    Raipur to chec) the sales and hether the target is achie!ing or not"

    They also promote Tata 2otor India Tata ;ar" The main role of sho room is to supply goods to the area that are assign to

    them"

    They are responsi$le for achie!ing the target assign to them"

    Selection o" C3annel mem5er(< $

    ;hannels mem$ers are selected if the follo ing facilities are a!aila$le'


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