Comparative Analysis of Comparative Analysis of Consumer response Consumer response

towards TATA Motors & towards TATA Motors & Others Others

Executive SummaryExecutive Summary

As TATA MOTORS is regarded as one of As TATA MOTORS is regarded as one of the best fuel efficient cars. Hence I the best fuel efficient cars. Hence I conducted a study on the consumer conducted a study on the consumer perception about small cars. Firstly, I took perception about small cars. Firstly, I took three brands of small cars; Zen estilo, three brands of small cars; Zen estilo, Indica and Santro for a comparative study Indica and Santro for a comparative study of small car segment. of small car segment.

Later I went through the process of filling Later I went through the process of filling the questionnaires, to know exactly what the questionnaires, to know exactly what the customer’s of small cars perceived the customer’s of small cars perceived about their cars. about their cars.

All the cars taken for the sample All the cars taken for the sample showed that the consumers perceived showed that the consumers perceived them as almost same in all the them as almost same in all the attributes like safety, comfort and attributes like safety, comfort and luxury. luxury.

But, at the end the research was But, at the end the research was limited due to small sample size, small limited due to small sample size, small sample area and time constraints.sample area and time constraints.

COMPANY PROFILECOMPANY PROFILE

Tata motors were established on Tata motors were established on September 1, 1945, originally for the September 1, 1945, originally for the manufacture of Steam Locomotives manufacture of Steam Locomotives at Jamshedpur.at Jamshedpur.

In 1969 Tata motors had become an In 1969 Tata motors had become an independent producer of Medium independent producer of Medium Commercial Vehicles. It had also Commercial Vehicles. It had also developed the capability of developed the capability of designing, testing and manufacturing designing, testing and manufacturing such vehicles. such vehicles.

It is the country's leading commercial It is the country's leading commercial vehicle manufacturer and has vehicle manufacturer and has significant presence in the multi-utility significant presence in the multi-utility and passenger car segments. and passenger car segments.

With the Launch of Tata Indica, an With the Launch of Tata Indica, an Euro 2 compliant vehicle, is the Euro 2 compliant vehicle, is the country’s first indigenously designed, country’s first indigenously designed, developed and manufactured developed and manufactured passenger car. passenger car.

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

Marketing Strategies Followed Marketing Strategies Followed By TATA MOTORSBy TATA MOTORS

1. Product, Branding, and Advertising1. Product, Branding, and Advertising Advertising is one of the most common ways to make car Advertising is one of the most common ways to make car

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

Other important marketing strategies are such as the Other important marketing strategies are such as the packaging, innovations, and quality control. Tata Motors packaging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One provide many innovative features to attract car lover. One of these innovations is the of these innovations is the Tata Tata SafariSafari 4X4 4X4 Dicor that has Dicor that has “Reverse Guide System”. A weather-proof camera is fixed “Reverse Guide System”. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. to the rear car to help the driver while reversing the car.

2. Pricing Strategy2. Pricing Strategy There are various factors to determine a There are various factors to determine a

price of a car. These factors are such as price of a car. These factors are such as market condition (it can’t be too low or too market condition (it can’t be too low or too high with the prices of same vehicle from high with the prices of same vehicle from competitors, it has to be at par), cost competitors, it has to be at par), cost incurred to build a car, profit by company, incurred to build a car, profit by company, dealer profit.dealer profit.

Giving discount every month and special Giving discount every month and special promotion for certain type of vehicle also one promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. of the strong strategy use by Tata Motors. Discount can be made from Company’s profit Discount can be made from Company’s profit or from dealer’s profit at certain range.or from dealer’s profit at certain range.

3. Place3. Place Place of dealership does play an Place of dealership does play an

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

S.W.O.T MATRIXS.W.O.T MATRIX

Internal Analysis

Strengths Weaknesses

External Analysis

Opportunities Threaths

SWOT Matrix SWOT Matrix

StrengthsStrengths► Brand ImageBrand Image► Dealers and service networkDealers and service network► Large shareholders base for Large shareholders base for capital needs capital needs ► Own steel plantsOwn steel plants

WeaknessesWeaknesses► Lack of competenceLack of competence► few models lined upfew models lined up► Not a strong player in luxury Not a strong player in luxury segmentsegment

OpportunitiesOpportunities► largest aspiring middle classlargest aspiring middle class► prospective buyers from 2-prospective buyers from 2-wheeler segmentwheeler segment

Threats Threats ► strong competitionstrong competition► safety and realibilitysafety and realibility► aggressive policies by marutiaggressive policies by maruti

PLAYERS IN THE COMPACT PLAYERS IN THE COMPACT SEGMENTSEGMENT

►Maruti Udyog Ltd.Maruti Udyog Ltd.

Zen estilo, WagonRZen estilo, WagonR►Hundai motors India Ltd.Hundai motors India Ltd.

SantroSantro►Fiat India Automobiles Pvt. Ltd.Fiat India Automobiles Pvt. Ltd.

puntopunto► General MotorsGeneral Motors

SparksSparks

ResearchResearchResearch Methodology: Research Methodology: The data for the project was collected The data for the project was collected

from malls, customers at showrooms, markets and from public in from malls, customers at showrooms, markets and from public in Delhi.Delhi.

Sample SizeSample Size: Sample size of 60 was taken based on “ convenient : Sample size of 60 was taken based on “ convenient Simple Random Sampling”.Simple Random Sampling”.

Research Tools : Research Tools : The data was collected through “Survey The data was collected through “Survey Questionnaire Method”.Questionnaire Method”.

Data Collection: Data Collection: Data was collected through the following-Data was collected through the following-

a) a) Primary sourcesPrimary sources: Questionnaire from General public: Questionnaire from General public

b) b) Secondary Sources:Secondary Sources: Magazines, newspapers, Internet. Magazines, newspapers, Internet.

QuestionnaireQuestionnaire

Questionnaire is a source of Primary Data. Questionnaire is a source of Primary Data. It is a simple way to collect data from general It is a simple way to collect data from general

publicpublic A multiple choice questions were given to the A multiple choice questions were given to the

respondents and they were asked to fill their respondents and they were asked to fill their opinion.opinion.

The data was then analyzed and inferences were The data was then analyzed and inferences were drawn on that basis.drawn on that basis.

DATA ANALYSISDATA ANALYSIS

Data analysis is the most important part Data analysis is the most important part of any questionnaire.of any questionnaire.

The data was analyzed according to the The data was analyzed according to the answers filed in by respondents.answers filed in by respondents.

The data was put in charts to get a clear The data was put in charts to get a clear comparison of services and comparison of services and satisfaction provided by various satisfaction provided by various operators.operators.

ANALYSISANALYSIS

►Sample sizeSample size – 60– 60►Respondents:Respondents:►Owners of SantroOwners of Santro – 18 – 18 ►Owners of Zen estilo Owners of Zen estilo -- 8 8►Owners of IndicaOwners of Indica – 9– 9►Owners of other cars – 5 Owners of other cars – 5

FINDINGSFINDINGSQ) What do you own?Q) What do you own?a) car b) Two Wheeler c) Nothinga) car b) Two Wheeler c) Nothing

From that it was found that From that it was found that 40 people owned a car 40 people owned a car 15 owned two wheelers and 15 owned two wheelers and 5 don’t nothing5 don’t nothing

Car

Twowheeler

Nothing

Q) Which car do you own? Q) Which car do you own? a) zen estilo b) santro c) indica d) othersa) zen estilo b) santro c) indica d) others

From that it was found that :From that it was found that :8 people owns zen estilo8 people owns zen estilo18 people owns santro18 people owns santro9 people owns indica9 people owns indica5 people owns others5 people owns others

0

5

10

15

20

Response

Q)Q) Are you satisfied with it?Are you satisfied with it?A) Yes b) NoA) Yes b) No

From that it was found that From that it was found that 35 were satisfied and 35 were satisfied and 25 were not.25 were not.

0

5

10

15

20

25

30

35

Yes No

Response

How much do you spend on maintenance on a monthly basis?How much do you spend on maintenance on a monthly basis?a) <2000 b) 2000-4000 c) >4000a) <2000 b) 2000-4000 c) >4000

From that it was found that From that it was found that 38 spends below 100038 spends below 100015 spends between 2000-400015 spends between 2000-40007 spends above 40007 spends above 4000

<2000

2000-4000

>4000

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

From that it was found that :From that it was found that :18 said zen estilo18 said zen estilo15 said santro15 said santro16 said Indica16 said Indica11 said others11 said others

Santro

Zen estilo

Indica

Others

Q) Out of these which you will see first when you will buy a car?Q) Out of these which you will see first when you will buy a car?

From that it was found that.From that it was found that.5 people consider cost before purchasing a car.5 people consider cost before purchasing a car.4 people consider style before purchasing a car.4 people consider style before purchasing a car. 12 people consider performance before purchasing a car.12 people consider performance before purchasing a car.15 people consider performance & style before purchasing a car.15 people consider performance & style before purchasing a car.

0 5 10 15

cost

Style

performance

performance & style

cost & peformance

Response

Q) Are you planning to buy a car within next?Q) Are you planning to buy a car within next?

From that it was found thatFrom that it was found that2 people want to purchase in a month2 people want to purchase in a month5 people want to purchase within 2 months5 people want to purchase within 2 months12 said 6 months12 said 6 months20 said in a year20 said in a year21 said not in near future21 said not in near future

0

5

10

15

20

25

In 1month

1 year

response

Q. Would You will purchase tata Q. Would You will purchase tata nano?nano?

From that it was found that From that it was found that 18 said yes18 said yes32 said no32 said no10 said cant say10 said cant say

YESNOCAN'T SAY

ConclusionConclusion

In small segment consumer seeks for-:In small segment consumer seeks for-: Good mileageGood mileage low maintenancelow maintenance easy availability of spare partseasy availability of spare parts easy financeeasy finance PricePrice

RecommendationsRecommendations

Should increase No. of service centersShould increase No. of service centers Should bring more variantsShould bring more variants Easy availability of spares partsEasy availability of spares parts Should Increase No. of outletsShould Increase No. of outlets Should employee more trained Should employee more trained

employeesemployees

LimitationsLimitations

► The size of sample was very small.The size of sample was very small.► Some information may vary for different Some information may vary for different

people.people.► Respondents might have given biased Respondents might have given biased

answers.answers.► Small sample size did not cover all age Small sample size did not cover all age

groups.groups.► Time constraint.Time constraint.► The figures of result and analysis are The figures of result and analysis are

approximate.approximate.

BiblographyBiblography► Internet: Internet: ► http://www.tata.com/0_careers/our_people/20020214_suman1.htmhttp://www.tata.com/0_careers/our_people/20020214_suman1.htm► http://www.tata.com/0_b_sectors/index.htmhttp://www.tata.com/0_b_sectors/index.htm► http://www.cybersteering.com/auto_makers/telco/tata.htmlhttp://www.cybersteering.com/auto_makers/telco/tata.html► http://www.tata.com/tata_engg/index.htmhttp://www.tata.com/tata_engg/index.htm► http://www.tatainternational.com/automob_products.asphttp://www.tatainternational.com/automob_products.asp► http://www.tata.com/tata_engg/articles/index.htmhttp://www.tata.com/tata_engg/articles/index.htm► http://www.telcoindia.com/home.htmhttp://www.telcoindia.com/home.htm► http://www.tata.com/tata_engg/media/20020228.htmhttp://www.tata.com/tata_engg/media/20020228.htm► http://www.tata.com/tata_engg/articles/2000106051indica2.htmhttp://www.tata.com/tata_engg/articles/2000106051indica2.htm► http://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htmhttp://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htm► www.marutiudyog.comwww.marutiudyog.com► www.hyudaimotorindia.comwww.hyudaimotorindia.com► www.autoweb.comwww.autoweb.com► Magazines:Magazines:► Auto Car 2008Auto Car 2008► Auto India January 2007-08Auto India January 2007-08► NewspapersNewspapers► Times of IndiaTimes of India► Hindustan timesHindustan times

presented by-presented by-

Abhishek GoelAbhishek Goel

0652061707(27)0652061707(27)