PROJECT REPORT-I

ON
MARKETING STRATEGIES OF TATA MOTORS
submitted in partial fulfillment of the requirements for the award of the
degree of

B.B.A (Banking and Insurance)

BATCH: 2021-2024

SUBMITTED TO SUBMITTED BY
Dr. Anshu Punshi Harshit

Assistant Professor O2121201821

BBA(B&I)IV-SEMESTER

Maharaja Surajmal Institute

Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade
Affiliated to Guru Gobind Singh Indraprastha University,
Delhi C-4, Janakpuri, New Delhi-110058

1
 ACKNOWLEDGEMENT
This project Report was undertaken for the fulfillment of BBA(B&I) pursuing at GURU
GOBIND SINGH INDRAPRASTHA UNIVERSITY, I would like to thanks my institute
and my Guide DR. Anshu Punshi (Assistant professor) at MAHARAJA SURAJMAL
INSTITUTE, for her invaluable help and guidance throughout my work. She kindly evinced
keen interest in my work and furnished some useful comments, which could enrich the work
substantially. In fact it is very difficult to acknowledge all the names and nature of help and
encouragement provided by them. I would never forget the help and support extended directly
or indirectly to me by all.

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 CERTIFICATE OF COMPLETION

Certificate by student

I, HARSHIT ,Roll No. 02121201821certify that the Minor Project Report (Paper Code:114)
entitled “MARKETING STRATEGIES OF TATA MOTORS” is done by me and it
is an authentic work carried out by me. The matter embodied in this has not been submitted
earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student

3
 CERTIFICATE OF COMPLETION

Certificate by guide

This is to certify that Project Report entitled “MARKETING STRATEGIES OF TATA

MOTORS” which is submitted by HARSHIT in partial fulfillment of the requirement for the
award of degree Bachelor in Business Administration/ Bachelor in Business
Administration (Banking and Insurance) to Maharaja Surajmal Institute Affiliated to
Guru Gobind Singh Indraprasth University, C-4, Janakpuri, New Delhi-110058 is a record
of the candidate own work carried out by him under my supervision. The matter embodied in
this report is original and has not been submitted for the award of any other degree.

Signature of the Guide

Name of the Guide:
DR.ANSHUPUNSHI

Designation: ASSISTANT PROFESSOR

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 DECLARATION BY THE CANDIDATE
I the undersigned solemnly declare that the project is based on my work carried out during the course of
this project. I asserted the statements made and conclusions drawn are an outcome of my research
project work. I further certify that:

The work contained in this report is original.

The work has not been submitted to any other institution for any other degree/diploma/certificate in this
university or any other university of India or abroad.

I have followed the guidelines provide by the university in writing the report.

(Signature of candidate)

Name of candidate: HARSHIT

Enrollment no.: 02121201821

Class: BBA (B&I) 2nd shift

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 CONTENTS

S.NO. Description Page No.

1 Acknowledgement 2

2 Certificate of completion 3

3 Declaration 4

4 Executive summary 6

5 CHAPTER1
o Introduction to the topic 7
o Objectives of the study 12
o Literature review 13
o Research Methodology 35
7 CHAPTER 2
o Company profile 37
8 CHAPTER 3
o Data Analysis & Interpretation 50
o Findings & Inferences 61
9 CHAPTER 4 62
o Recommendations and Conclusion
10 Bibliography 64

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 EXECUTIVE SUMMARY
Marketing strategy is defined by David Aaker as a process that can allow an organization to
concentrate its resources on the optimal opportunities with the goals of increasing sales and
achieving a sustainable competitive advantage.[1] Marketing strategy includes all basic and
long-term activities in the field of marketing that deal with the analysis of the strategic initial
situation of a company and the formulation, evaluation and selection of market-oriented
strategies and therefore contribute to the goals of the company and its marketing objectives
Marketing strategies serve as the fundamental underpinning of marketing plans designed to
fill market needs and reach marketing objectives.[3] Plans and objectives are generally tested
for measurable results. Commonly, marketing strategies are developed as multi-year plans,
with a tactical plan detailing specific actions to be accomplished in the current year. Time
horizons covered by the marketing plan vary by company, by industry, and by nation,
however, time horizons are becoming shorter as the speed of change in the environment
increases.[4] Marketing strategies are dynamic and interactive. They are partially planned and
partially unplanned. See strategy dynamics. Marketing strategy needs to take a long term
view, and tools such as customer lifetime value models can be very powerful in helping to
simulate the effects of strategy on acquisition, revenue per customer and churn rate.

Car manufacturers attribute the slower sales growth to higher base volume, competing
investment needs with the consumer and a likely sucking of demand by incentives. It
coincides with a 2007 market; steady despite high crude prices and fear of inflation.
Agriculture was good; second quarter GDP growth rate was 8 per cent; incomes are rising and
there is youth to fuel consumption. Over December 22, 2004 - December 21, 2007, the BSE
Auto Index gained
52.26 per cent to touch 4240.12. Yet, the party was characterless.

Enthusiasm missing

Product launches failed to arrest the auto business' steady drift into commodity play. Absence
of excitement around products betrayed both the maturity of existing models and the ennui
gathering around the car's descent to consumer durable status. However, a few stood out.

Tata Motors tapped into large sales numbers with its mini truck, Ace. It took four wheels into
traditional 3-wheeler space and by year-end the company talked of doubling production
capacity. Other notables were Maruti's Swift and Toyota's Innova.

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 CHAPTER 1
INTRODUCTION

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-on-
year to 3.99 million units. It was the seventh largest manufacturer of commercial vehicles in
2018. The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for the near
future. Automobile exports grew 14.50 per cent during FY19. It is expected to grow at a
CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government
of India and the major automobile players in the Indian market are expected to make India a
leader in the two-wheeler and four-wheeler market in the world by 2020.

Market Size
Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with
26.27 million vehicles getting sold in FY19. Domestic automobile production increased at
6.96 per cent CAGR between FY13-19 with 30.92 million vehicles manufactured in the
country in FY19.

In FY19, year-on-year growth in domestic sales among all the categories was recorded in
commercial vehicles at 17.55 per cent followed by 10.27 per cent year-on-year growth in the
sales of three-wheelers.

Premium motorbike sales in India crossed one million units in FY18. During January
September 2018, BMW registered a growth of 11 per cent year-on-year in its sales in India at
7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury vehicles

segment according to J D Power 2018 India sales satisfaction index (luxury).

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Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18.

Government Initiatives
The Government of India encourages foreign investment in the automobile sector and allows
100 per cent FDI under the automatic route.

Some of the recent initiatives taken by the Government of India are -

• Under Union Budget 2019-20, government announced to provide additional income

tax deduction of Rs 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to
purchase EVs.
• The government aims to develop India as a global manufacturing centre and an R&D
hub.
• Under NATRiP, the Government of India is planning to set up R&D centres at a total
cost of US$ 388.5 million to enable the industry to be on par with global standards.
• The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the
country for introduction of electric vehicles (EVs) in their public transport systems
under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric
Vehicles in India) scheme. The government will also set up incubation centre for
startups working in electric vehicles space.
• In February 2019, the Government of India approved the FAME-II scheme with a
fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Achievements
Following are the achievements of the government in the past years:

• On 29th July 2019, Inter-ministerial has sanctioned 5,645 electric buses for 65 cities.
• NATRIP’s proposal for “Grant-In-Aid for test facility infrastructure for Electric
Vehicle (EV) performance Certification from NATRIP Implementation Society”
under FAME Scheme which had been approved by Project Implementation and
Sanctioning Committee (PISC) on 3rd January 2019.
• Number of vehicles supported under FAME scheme increased from 5,197 in June
2015 to 192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202
threewheelers, 185 four-wheelers and 10 light commercial vehicles were

scheme. 9
supported under FAME

scheme. 1
0
 • Under National Automotive Testing And R&D Infrastructure Project (NATRIP),
following testing and research centres have been established in the country since 2015
o International Centre for Automotive Technology (ICAT), Manesar o National
Institute for Automotive Inspection, Maintenance & Training
(NIAIMT), Silchar o National Automotive
Testing Tracks (NATRAX), Indore o Automotive
Research Association of India (ARAI), Pune o Global
Automotive Research Centre (GARC), Chennai
• SAMARTH Udyog – Industry 4.0 centres: ‘Demo cum experience’ centres are being
set up in the country for promoting smart and advanced manufacturing helping SMEs
to implement Industry 4.0 (automation and data exchange in manufacturing
technology).

Road Ahead
The automobile industry is supported by various factors such as availability of skilled labour
at low cost, robust R&D centres and low cost steel production. The industry also provides
great opportunities for investment and direct and indirect employment to skilled and unskilled
labour.

Indian automotive industry (including component manufacturing) is expected to reach Rs

16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9
per cent in 2018.

References: Media Reports, Press Releases, Department of Industrial Policy and Promotion
(DIPP), Automotive Component Manufacturers Association of India (ACMA), Society of
Indian Automobile Manufacturers (SIAM), Union Budget 2015-16, Union Budget 2017-18

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12
 Future Trends in the Automobile Industry
As the auto-shows starts in February 2016, the industry promised a blend of technology and
automotives. With the recession trend breaking its leashes form the past two years, 2016 is
expected to get back on track with the sales of automobiles in the country.

• Almost Self-governing cars are predicted to be on the streets by 2020

• More than half the cars on the streets are going to be powered by diesel by 2020
• Industry watcher Gartner indicates that 30 percent of motorists want parking info. The
facility is likely to come up after glitches in the infrastructure catch up.
• High Performance Hybrid cars are likely to gain greater popularity among consumers.

The Indian automobile industry has a prominent future in India. Apart from meeting the
advancing domestic demands, it is penetrating the international market too. Favoured with
various benefits such as globally competitive auto-ancillary industry; production of steel at
lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centres etc.,
the industry provide immense investment and employment opportunities.

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 OBJECTIVE & SCOPE OF THE STUDY

OBJECTIVE OF THE STUDY

• To understand the market potentiality for TATA Motors.

• To determine the acceptable price of the product.

• To determine the requirements and needs of the potential customers.

• To know what people perceive and thinking about Tata Motors and its products

• To understand the brand repositioning strategies of Tata Motors in the SUV because
the new brand of TATA Motors

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 LITERATURE RIVIEW

Impact of Marketing Strategy on Business Performance(Oluyole Local

Government, Ibadan, Nigeria)

There are numerous definitions of marketing strategy in the literature and such definitions
reflect different perspectives ( Liet al, 2000). However, the consensus is that marketing
strategy provides the avenue for utilizing the resources of an organization in order to achieve
its set goals and objectives. Marketing strategy is define as in a given market area, the proper
allocation of resources to support enterprises to win competitive advantage. Goi (2005) define
marketing strategy as the set of the marketing tools that firms use to pursue their marketing
objectives in the target market; the view which was earlier expressed by (Gronroos, 1999, and
Osuagwu, 2006).Therefore, the function of marketing strategy is to determine the nature,
strength, direction, and interaction between the marketing mix- elements and the
environmental factors in a particular situation. According to (owomoyela, et al, 2013),
the aim of the development of an organization‟s marketing strategy development is to
establish, build, defend and maintain its competitive advantage. Managerial judgment is
important in coping with environmental ambiguity and uncertainty in strategic marketing. Lin
(1993) as cited in Long- Yi and Ya – Huei,(2012) proposes that marketing strategy can be
divided into four ways to research that: (1) Dual-oriented marketing strategy: using rational
and emotional product name, easy to remember, and pricing to take into account the cost of
service and quality orientation, psychological factors and competitors‟ prices.

(2) Rational marketing strategy: the use of functional demands of a rational position,
consider aftersales service, warranties, delivery and installation attached by the product
factors.

(3) Emotional marketing strategy: the emotional appeal to locate, emphasis on physical
product shape, color design, the use of emotional product names, and so on memory, attention
to product packaging and labeling.

(4) Maintenance marketing strategy: consumers are more concerned about price and
quality, it is not suitable to use a lot of marketing techniques, manufacturers can improve
product packaging and labeling, give a simple name for remember, consider the quality
position and competitor pricing during pricing.

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Lin (1993) divides marketing strategy into four parts, that is dual-oriented, rational, emotional
and low involvement, different product types with different marketing strategy, so the
manufacturer‟s marketing strategy can be divided into five parts which is the choice of target
market, product strategy, pricing strategy, channel strategy and marketing strategy. He use a
total of 29 questions to measure new product marketing strategy and seven points Likert scale
is used to measure. When the industry lack of competition, the business performance would
be better even when companies are not entirely market-driven, the performance will have a
more excellent performance (Kohliet al., 1993). Previous studies have established
relationships between the marketing strategies and performance ( Owomoyelaet al, 2013;
Shoham, 2002; Theodosiou&Leonidou, 2003). Leonidou, Katsikeas and Samiee (2002)
propose a study in which a meta-analysis was also conducted to evaluate the relationships
between the marketing strategies and performance.

1 PRODUCT STRATEGY: Kotler and Armstrong (2006) define a product as anything

that can be offered to a market for attention, acquisition, use, or consumption that might
satisfy a want or need. They further define a consumer product as the product bought by the
final consumer for personal consumption. Consumers buy products frequently, with careful
planning, and by comparing brands based on price, quality and style.Borden, (1984) sees a
product as about quality, design, features, brand name and sizes. Mohammad et al, (2012)
also say that product is the physical appearance of the product, packaging, and
labelingInformation, which can also influence whether consumers notice a product in-store,
examine it, andpurchase it. past researchers have clearly suggested that product influences
have a significant impact on business performance (Kazemand Heijden, 2006; Kemppainen,
Vepsäläinen, andTinnilä, 2008; Ogunmokun and Esther, 2004; Owomoyelaet al, 2013),

2 PRICING STRATEGY: kotler (2007) defines price as a cost of producing, delivering

and promoting the product charged by the organization. Zeithaml (1988) is of the view that
monetary cost is one of the factors that influence consumer‟s perception of a product‟s value.
Price can be stated as the actual or rated value of a valuable product which is up for
exchange; some define it as amount of money paid for product (Kotleret al, 2005). In the
studies of Colpan,( 2006); Dooleet al., (2006) and Owomoyelaet al, (2013) they establish
significant relationship between price and business performance. The price you set for your
product or service plays a large role in its marketability. Impact Of Marketing Strategy On
Business PerformanceA Study Of Selected Small And Medium www.iosrjournals.org 61 |
Page Pricing for products or services that are more commonly available in the market is
16
more elastic,

17
meaning that unit sales will go up or down more responsively in response to price changes
(Jones, 2007).

3 PROMOTION STRATEGY Zeithamlet al. (1995) describe promotion as part of

specific effort to encourage customers to tell others about their services. According to Duncan
(2005), promotion is the key to the market exchange process that communicates with present
and potential stakeholders, and the general public. Every firm or store must cast itself into the
role of communicator and promoter. Hakansson (2005) also reports that promotion appears as
an issue of how to create an optimal mix of marketing communication tools in order to get a
product's message and brand from the producer to the consumer. Borden, (1984) defines
promotion as sales promotion, advertising, personal selling, public relations and direct
marketing. Kotler, (2007) discovers that Promotions have become a critical factor in the
product marketing mix which consists of the specific blend of advertising, personal selling,
sales promotion, public relations and direct marketing tools that the company uses to pursue
its advertising and marketing objective. Previous researches (Amine and Cavusgil, 2001;
Francis and Collins-Dodd, 2004) have established significant relationship between promotion
and business performance.

4 PLACE STRATEGY: Jones, (2007) defines place as any way that the customer can
obtain a product or receive a service. Bowersox and Closs (1996) give distribution as another
name for place. According to them, it is the third element of the marketing mix, and it
encompasses all decisions and tools which relate to making products and services available to
customers. Kotler and Armstrong (2006),also define place or distribution as a set of
interdependent organizations involved in the process of making a product available for use or
consumption by consumers. Place strategy calls for effective distribution of products among
the marketing channels such as the wholesalers or retailers (Berman, 1996). Owomoyela et al,
(2013); Amine and Cavusgil, {2001}; and McNaughton,( 2002) agree that place has
significant effect on business performance.

5 PACKAGING STRATEGY Packaging is a crucial component of the "marketing mix"

for a product. It is the "least expensive form of advertising" and is of particular importance at
the point of sale, as the package is the manufacturer's last chance to convince the customer to
purchase the product (Sajuyigbeet al, 2013). Packaging is a very important marketing strategy
to glamorize product in order to attract the consumer‟s attention. Sometimes packaging is so
important that it cost more than the product itself in order to lure the consumers to buy it
(Sajuyigbeet al,2013).Olayinka and Aminu (210606) see packaging as all activities of
designing
and producing the container or wrapper for a product. Kottler (2007) defines packaging as all
materials products used for the containment, protection, hard delivery and presentation of
goods. Packaging is the protecting products for distribution, storage, sale and use, packaging
also refers to the process of design evaluation and production of packages. Packaging can be
described as a coordinated system of preparing goods for transport, warehousing information
and sell. It is fully integrated into government business, institutional, industry, and personal
use (Diana, 2005).Sajuyigbeet al, (2013) point out that packaging is one of the inevitable
communication tools that influence buying behavior and enhance business performance.

6 AFTER SALES SERVICE STRATEGY: After sales service involves a continuous

interaction between the service provider and thecustomer throughout the post-purchase
product life cycle. At the time the product issold to the customer, this interaction is
formalized by a mutually agreed warranty orservice contract. Urbaniak, (2001) defines after
sales service as those activities that enhance or facilitate the role and use of the product.
(Asugman, et al., 1997) also define after sales service as those activities in which a firm
engages after purchase of its product that minimize potential problems related to product use,
and maximize the value of the consumption experience. Past researchers (Ruben, 2012;
Saccani, et al., 2007;; Raddats, 2011; Goffin and New, 2001) agree that after sales service is a
marketing strategy that enhance and establish strong and long relationship with customers,
which in long run lead to customer satisfaction, retention and profitability.

CHARACTERISTICS OF SMES IN THE NIGERIAN ECONOMY: In a global context,

a general definition of SMEs using size and scale of operation is not easy, but within the fixed
co-ordinates of national boundaries, it might be relatively easier. At the 13th Council meeting
of the National Council on Industry held in July, 2001 Small and Medium Enterprises (SMEs)
were defined by the Council as follows:

1 Small-Scale Industry: Impact Of Marketing Strategy On Business PerformanceA

Study Of Selected Small And Medium www.iosrjournals.org 62 | Page An industry with a
labour size of 11-100 workers or a total cost of not more thanN50 million, including working
capital but excluding cost of land.

2 Medium Scale Industry: An industry with a labour size of between 101-300 workers
or a total cost of over N50 million but not more than N200 million, including working capital
but excluding cost of land. 2.7.3 Large Scale An industry with a labour size of over 300
workers or a total cost of over N200 million, including working capital but excluding cost
17
of land.

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Aluko, Oguntoye, and Afonja (1975) as cited in Oyebamiji, Kareem and Ayeni (2013)
characterised SMEs as follows:

1) The same manager or proprietor finds it difficult to raise short or long term capital from
the organized capital market, instead relies on personal savings or loans from friends,
relatives or money lenders.

2) The same manager/proprietor handles/supervises the production, financing, marketing

and personnel functions of the enterprise.

3) The manager/proprietors vision is confined to the local community in which he carries

on his line of business. There is little or no knowledge of the wider or distant markets.

4) The rate of business mortality is high probably because of strong mutual distrust and
dominance of the sole proprietor which militates against the formation of partnerships or
limited liability companies. 5) The enterprise is generally poorly equipped as the small scale
industrialist feels reluctant to accept outside help owing to prejudice or fear that information
about the enterprise might reach the tax authorities or a nearby competitor.

6) Little or no account of business costs or revenue is kept and the banking system is
hardly utilized. The result is that banking facilities for business financing and expansion are
extended to only very few of the industrialists.

7) The level of education of the proprietor is usually very low with a consequent low level
of business management technique, skill or market information.

Physical distribution represents the way businesses provide goods and services to their
customers. In some businesses, particularly retail businesses, the customer comes to the
business. Their locations may be important. Several other businesses usually go to the
customer (e.g. B2B) The location of their businesses is not so important.

The designing a Distribution Strategy deals with the following issues:

 Best Channel to deliver product

 Three different distribution systems:

o Retail consideration.

o Channel length.
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 o Channel exclusivity.

 Choice of channel: Cost/benefit of each alternative.

Why Is Distribution Important?

(1) It greatly affects all decisions in the marketing mix, including pricing, promotion, sales
and packaging through its impact on marketing costs and relationships.

(2) It creates a mutually dependent commitment between participants through an

infrastructure that is not easily changed and would be expensive to re-create. It becomes a
part of the service delivery structure that the customers become accustomed to and trained in
using.

Most of the activities for a product manager are usually related to working with the existing
distributors, dealers or agents and perhaps expediting shipments as necessary. However, some
new products necessitate changes in the channel of distribution, or market and competitive
forces will require changes for existing products. This could also be a critical element of the
plan if a product manager is rolling out a product into new regions and/or expanding globally.
As a result, distribution strategy becomes an important aspect for the development of the
annual marketing plan and an effective marketing strategy.

Choice of Intemediaries versus Direct Marketing

 Producers may lack financial resources

to carry out marketing

 Customer support may be required

 Early days of computers

 Many firms set up partially owned

distribution

 Auto manufacturers
 Fast food 20
  New technologies such as internet and

logistics are affecting choice

 Dell Computer Corporation

Choice may also vary with Product Characteristics

 Perishable products

 Problem of delay and handling

 Bulky products

 Minimize shipping distance

 Nonstandard product

 Direct sales

 High unit value product (airplanes)

Dedicated sales force in company

A supply chain is a network of facilities and distribution options that performs the functions
of procurement of materials, transformation of these materials into intermediate and finished
products, and the distribution of these finished products to customers. Supply chains exist in
both service and manufacturing organizations, although the complexity of the chain may vary
greatly from industry to industry and firm to firm.

Below is an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then transported
to distribution centers, and ultimately, customers. Realistic supply chains have multiple end
products with shared components, facilities and capacities. The flow of materials is not
always along an arborescent network, various modes of transportation may be considered,
and the bill of materials for the end items may be both deep and large.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing

organizations along the supply chain operated independently. These organizations have their
own objectives and these are often conflicting. Marketing's objective of high customer service
21
and maximum sales dollars conflict with manufacturing and distribution goals. Many
manufacturing operations are designed to maximize throughput and lower costs with little
consideration for the impact on inventory levels and distribution capabilities. Purchasing
contracts are often negotiated with very little information beyond historical buying patterns.
The result of these factors is that there is not a single, integrated plan for the organization---
there were as many plans as businesses. Clearly, there is a need for a mechanism through
which these different functions can be integrated together. Supply chain management is a
strategy through which such an integration can be achieved.

Supply chain management is typically viewed to lie between fully vertically integrated firms,
where the entire material flow is owned by a single firm, and those where each channel
member operates independently. Therefore coordination between the various players in the
chain is key in its effective management. Cooper and Ellram [1993] compare supply chain
management to a well-balanced and well-practiced relay team. Such a team is more
competitive when each player knows how to be positioned for the hand-off. The relationships
are the strongest between players who directly pass the baton, but the entire team needs to
make a coordinated effort to win the race.

Supply Chain Decisions

We classify the decisions for supply chain management into two broad categories -- strategic
and operational. As the term implies, strategic decisions are made typically over a longer time
horizon.

These are closely linked to the corporate strategy (they sometimes {\it are} the corporate
strategy), and guide supply chain policies from a design perspective. On the other hand,
operational decisions are short term, and focus on activities over a day-to-day basis. The
effort in these type of decisions is to effectively and efficiently manage the product flow in
the "strategically" planned supply chain.

There are four major decision areas in supply chain management: 1) location, 2) production,
3) inventory, and 4) transportation (distribution), and there are both strategic and operational
elements in each of these decision areas.

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Location Decisions

The geographic placement of production facilities, stocking points, and sourcing points is the
natural first step in creating a supply chain. The location of facilities involves a commitment
of resources to a long-term plan. Once the size, number, and location of these are determined,
so are the possible paths by which the product flows through to the final customer. These
decisions are of great significance to a firm since they represent the basic strategy for
accessing customer markets, and will have a considerable impact on revenue, cost, and level
of service. These decisions should be determined by an optimization routine that considers
production costs, taxes, duties and duty drawback, tariffs, local content, distribution costs,
production limitations, etc. (See Arntzen, Brown, Harrison and Trafton [1995] for a thorough
discussion of these aspects.) Although location decisions are primarily strategic, they also
have implications on an operational level.

Production Decisions

The strategic decisions include what products to produce, and which plants to produce them
in, allocation of suppliers to plants, plants to DC's, and DC's to customer markets. As before,
these decisions have a big impact on the revenues, costs and customer service levels of the
firm. These decisions assume the existence of the facilities, but determine the exact path(s)
through which a product flows to and from these facilities. Another critical issue is the
capacity of the manufacturing facilities--and this largely depends the degree of vertical
integration within the firm. Operational decisions focus on detailed production scheduling.
These decisions include the construction of the master production schedules, scheduling
production on machines, and equipment maintenance. Other considerations include workload
balancing, and quality control measures at a production facility.

Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of
the supply chain as either raw materials, semi-finished or finished goods. They can also be in-
process between locations. Their primary purpose to buffer against any uncertainty that might
exist in the supply chain. Since holding of inventories can cost anywhere between 20 to 40
percent of their value, their efficient management is critical in supply chain operations. It is
strategic in the sense that top management sets goals. However, most researchers have
approached the management of inventory from an operational perspective. These include

deployment strategies (push versus pull), cont2r2ol policies --- the determination of the
optimal
levels of order quantities and reorder points, and setting safety stock levels, at each stocking
location. These levels are critical, since they are primary determinants of customer service
levels.

Transportation Decisions

The mode choice aspect of these decisions are the more strategic ones. These are closely
linked to the inventory decisions, since the best choice of mode is often found by trading-off
the cost of using the particular mode of transport with the indirect cost of inventory
associated with that mode. While air shipments may be fast, reliable, and warrant lesser safety
stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they
necessitate holding relatively large amounts of inventory to buffer against the inherent
uncertainty associated with them. Therefore customer service levels, and geographic location
play vital roles in such decisions. Since transportation is more than 30 percent of the logistics
costs, operating efficiently makes good economic sense. Shipment sizes (consolidated bulk
shipments versus Lot-for-Lot), routing and scheduling of equipment are key in effective
management of the firm's transport strategy.

Supply Chain Modeling Approaches

Clearly, each of the above two levels of decisions require a different perspective. The
strategic decisions are, for the most part, global or "all encompassing" in that they try to
integrate various aspects of the supply chain. Consequently, the models that describe these
decisions are huge, and require a considerable amount of data. Often due to the enormity of
data requirements, and the broad scope of decisions, these models provide approximate
solutions to the decisions they describe. The operational decisions, meanwhile, address the
day to day operation of the supply chain. Therefore the models that describe them are often
very specific in nature. Due to their narrow perspective, these models often consider great
detail and provide very good, if not optimal, solutions to the operational decisions.

To facilitate a concise review of the literature, and at the same time attempting to
accommodate the above polarity in modeling, we divide the modeling approaches into three
areas --- Network Design, ``Rough Cut" methods, and simulation based methods. The
network design methods, for the most part, provide normative models for the more strategic
decisions. These models typically cover the four major decision areas described earlier, and
focus more on the design aspect of the supply chain; the establishment of the network and the
associated flows on them. "Rough cut" methods, on the other hand, give23guiding policies
for the operational decisions.
These models typically assume a "single site" (i.e., ignore the network) and add supply chain
characteristics to it, such as explicitly considering the site's relation to the others in the
network. Simulation methods is a method by which a comprehensive supply chain model can
be analyzed, considering both strategic and operational elements. However, as with all
simulation models, one can only evaluate the effectiveness of a pre-specified policy rather
than develop new ones. It is the traditional question of "What If?" versus "What's Best?".

Network Design Methods

As the very name suggests, these methods determine the location of production, stocking, and
sourcing facilities, and paths the product(s) take through them. Such methods tend to be large
scale, and used generally at the inception of the supply chain. The earliest work in this area,
although the term "supply chain" was not in vogue, was by Geoffrion and Graves [1974].
They introduce a multicommodity logistics network design model for optimizing annualized
finished product flows from plants to the DC's to the final customers. Geoffrion and Powers
[1993] later give a review of the evolution of distribution strategies over the past twenty
years, describing how the descendants of the above model can accommodate more echelons
and cross commodity detail.

Breitman and Lucas [1987] attempt to provide a framework for a comprehensive model of a
production-distribution system, "PLANETS", that is used to decide what products to produce,
where and how to produce it, which markets to pursue and what resources to use. Parts of this
ambitious project were successfully implemented at General Motors. Cohen and Lee [1985]
develop a conceptual framework for manufacturing strategy analysis, where they describe a
series of stochastic sub- models, that considers annualized product flows from raw material
vendors via intermediate plants and distribution echelons to the final customers. They use
heuristic methods to link and optimize these sub- models. They later give an integrated and
readable exposition of their models and methods in Cohen and Lee [1988]. Cohen and Lee
[1989] present a normative model for resource deployment in a global manufacturing and
distribution network. Global after-tax profit (profit-local taxes) is maximized through the
design of facility network and control of material flows within the network. The cost structure
consists of variable and fixed costs for material procurement, production, distribution and
transportation. They validate the model by applying it to analyze the global manufacturing
strategies of a personal computer manufacturer.

24
Finally, Arntzen, Brown, Harrison, and Trafton [1995] provide the most comprehensive
deterministic model for supply chain management. The objective function minimizes a
combination of cost and time elements. Examples of cost elements include purchasing,
manufacturing, pipeline inventory, transportation costs between various sites, duties, and
taxes. Time elements include manufacturing lead times and transit times. Unique to this
model was the explicit consideration of duty and their recovery as the product flowed through
different countries. Implementation of this model at the Digital Equipment Corporation has
produced spectacular results --- savings in the order of $100 million dollars.

Clearly, these network-design based methods add value to the firm in that they lay down the
manufacturing and distribution strategies far into the future. It is imperative that firms at one
time or another make such integrated decisions, encompassing production, location,
inventory, and transportation, and such models are therefore indispensable. Although the
above review shows considerable potential for these models as strategic determinants in the
future, they are not without their shortcomings. Their very nature forces these problems to be
of a very large scale. They are often difficult to solve to optimality. Furthermore, most of the
models in this category are largely deterministic and static in nature. Additionally, those that
consider stochastic elements are very restrictive in nature. In sum, there does not seem to yet
be a comprehensive model that is representative of the true nature of material flows in the
supply chain.

Rough Cut Methods

These models form the bulk of the supply chain literature, and typically deal with the more
operational or tactical decisions. Most of the integrative research (from a supply chain
context) in the literature seem to take on an inventory management perspective. In fact, the
term "Supply Chain" first appears in the literature as an inventory management approach. The
thrust of the rough cut models is the development of inventory control policies, considering
several levels or echelons together. These models have come to be known as "multi-level" or
"multi-echelon" inventory control models. For a review the reader is directed to Vollman et
al. [1992].

Multi-echelon inventory theory has been very successfully used in industry. Cohen et al.
[1990] describe "OPTIMIZER", one of the most complex models to date --- to manage IBM's
spare parts inventory. They develop efficient algorithms and sophisticated data structures to
achieve large scale systems integration.
25
Although current research in multi-echelon based supply chain inventory problems shows
considerable promise in reducing inventories with increased customer service, the studies
have several notable limitations. First, these studies largely ignore the production side of the
supply chain. Their starting point in most cases is a finished goods stockpile, and policies are
given to manage these effectively. Since production is a natural part of the supply chain, there
seems to be a need with models that include the production component in them. Second, even
on the distribution side, almost all published research assumes an arborescence structure, i. e.
each site receives re-supply from only one higher level site but can distribute to several lower
levels. Third, researchers have largely focused on the inventory system only. In logistics-
system theory, transportation and inventory are primary components of the order fulfillment
process in terms of cost and service levels. Therefore, companies must consider important
interrelationships among transportation, inventory and customer service in determining their
policies. Fourth, most of the models under the "inventory theoretic" paradigm are very
restrictive in nature, i.e., mostly they restrict themselves to certain well known forms of
demand or lead time or both, often quite contrary to what is observed.

The preceding sections are a selective overview of the key concepts in the supply chain
literature.
Following is a list of recommended reading for a quick introduction to the area.

A distribution channel links the manufacturer of a product with the end users i.e. the
consumers. Decisions regarding distribution channels are of great significance to the
manufacturers. Organizations can have strategic distribution systems that help them to
examine the current distribution system and decide on the distribution system that can be
useful in the future. In designing a distribution channel for an organization, there are mainly
three steps – identifying the functions to be performed by the distribution system, designing
the channel, and putting the structure into operation. There are different types of distribution
channels depending on the number of levels that exist between the producer and the
consumer. In deciding on the kind of distribution strategy to be used, there are various
considerations to be kept in mind – considerations on middlemen, customers, product, price,
etc. The middlemen should have the necessary financial capacity to carry out the task
effectively. Customers should be able to get the products conveniently. Product features to be
considered include durability, toughness etc. The price of the product also requires
consideration in deciding the distribution strategies.

Distribution intensity can be referred to in terms of the number of retail stores carrying a
26
product in a geographical location. In intensive distribution, the manufacturer distributes the

27
products through the maximum number of outlets. In exclusive distribution, the number of
distribution channels will be very limited. In selected distribution, the number of retail outlets
in a location will be greater than in

the case of exclusive distribution and fewer than in the case of intensive distribution.
Distribution management is of strategic importance to any organization as distribution plays a
crucial role in the success of the product in the market. Distribution management also helps to
maximize profits.

In managing the distribution channels, maintaining a mutually beneficial relationship between

the manufacturer and distributor is necessary. International distribution is gaining importance
with the increase in the number of multinational companies. There are certain factors to be
considered in international distribution. The distributors should be chosen carefully with a
long- term focus. It is better to build a long-term relationship with the local distributors. They
should be provided with all the necessary support in expanding their operations. The
marketing strategy for the product should be controlled solely by the MNC. Information plays
an important role in distribution and the MNC has to ensure that the local distributors provide
them with the required information which will help them to increase sales and expand their
business.

We all know that, the products fall into three categories- convenience, shopping and specialty.
Convenience goods are those for which the consumer before the need arises posses a
preference map that indicates willingness to purchase any of a number of known substitutes
rather than to make the additional effort required to buy a particular item.

The Sales Management Process:

As stated earlier, the two primary responsibilities of sales managers are to achieve their firm’s
goals for the current planning period and to develop the people reporting to them. One field
sales manager described the job as follows:

People development is my main mission in life: 50 percent people development, 30 Percent

sales and product leadership, 10 percent administration, and 10 percent Compliance to better
understand how sales managers execute these responsibilities, in this section. We describe a
fundamental process for sales management, the activities in which sales managers are

28
engaged,

29
and the competencies needed to be a successful sales manager. When managers fail to follow
a defined sales management process,

Chaos reigns and field reps merely react to customer requests rather than help them solve
problems. When Filemon Lopez looked at the selling process at Comcast Cable, He found
there were no systems to help a salesperson convert leads into a sale. There were no
territories, sales people Sold advertising space on price rather than value, and lead generation
was haphazard. Lopez.

Instituted training classes showing reps how to prospect, analyze needs, solve problems, and
make value-driven sales. He also established sales territories so that reps were not competing
with one another, and he hired telemarketers to get leads for field reps. Now that Comcast.
Cable has a defined sales process, reps know what steps to follow and sales revenue is up 20
percent. The sequence of activities that guides managers in the creation and administration of
sales programs for a firm is known as the sales management process. This text is organized
around the steps in this sales management process. Each step is briefly described here.
Focusing on the Big Picture. An effective sales force is a powerful asset for any company. A
company’s management process is fundamentally affected by the firm’s overall business
strategy and its strategy for accessing its target markets. The relationship between business
strategies, a firm’s marketing strategy, and a firm’s strategic sales force program is discussed
in Chapter 2. Two management resource presentations follow Chapter 2: sales force
investment and sales forecasting. Sales force investment is primarily a function of properly
sizing the sales organization to assure that customers and prospects receive appropriate
coverage, company products get proper representation, and the sales force is stretched but not
overworked. The appropriate investment in the sales force will also depend on the size of the
opportunity a firm faces and its expected sales level. Put together, Sales forecasting and sales
force investment constitutes the “Big Picture” focus of top sales force executives.

Role of the Sales Force:

To be successful and produce profitable results, a firm’s business strategy and market access
strategy must be implemented by the sales force. In other words, strategic plans are
implemented through the activities and behaviors of the sales force. Key sales force behaviors
include calling on certain types of customers and prospects, managing customer relationships
and creating value for individual customers. The role of the sales force in implementing a
firm’s market access strategy is the focus of the second section of this text. This section is
30
organized

31
hierarchically to first look at managing multiple sales opportunities, account relationships,
and customer interactions.

Together, these chapters examine the activities and behaviors of successful sales forces.

Structuring the Sales Force. To meet customer needs efficiently and effectively and to sell the
firm’s products and services, a sales force must be well organized. Sales force structure
decisions influence how customers see the firm because sales force structure will affect the
selling skills and knowledge level required of salespeople. In turn, sales management
activities such as compensation, recruitment, training, and evaluation are affected. Alternative
sales force structures are presented. Management

resource describing a process for aligning sales territories that is, assigning customers to
salespeople, Building Sales Competencies. Sales managers are responsible for hiring
salespeople with the appropriate skills and backgrounds to implement the sales strategy. Good
sources must be found for new hires, and those who are weak in these areas must be carefully
screened out. These and other recruiting issues are covered.

In addition to hiring qualified people, salespeople’s competencies are usually developed.

Through training before they are sent into the field. Sales managers are responsible for
making sure that training is completed, and they often conduct some of the classes. Most
initial training programs are designed to familiarize salespeople with the Company’s
products, services, and operating procedures, with some time devoted to development of
selling skills. Because sales training is expensive, the sales manager is responsible for
selecting the most cost-effective methods, location, and materials. A detailed discussion of
training is given in leading the Sales Force. Effective sales managers know how to supervise
and lead their salespeople. Sales managers provide leadership by inspiring people to grow and
develop professionally, while achieving the revenue goals of the firm. Good leaders provide
models of behavior for employees to emulate, often developing strong mutual trust and
rapport with subordinates. Leadership styles vary, but effective leaders are adept at initiating
structure—that is, organizing and motivating employees, setting goals, enforcing rules, and
defining expectations.

32
Distribution Channel:

33
Distribution (or place) is one of the four elements of marketing mix. An organization or set of
organizations (go-betweens) involved in the process of making a product or service available
for use or consumption by a consumer or business user. The other three parts of the marketing
mix are product, pricing, and promotion.

Frequently there may be a chain of intermediaries; each passing the product down the chain to
the next organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will
have their own specific needs, which the producer must take into account, along with those of
the all- important end-user.

Channels of distribution-

A number of alternate 'channels' of distribution may be available:

 Selling direct, such as via mail order, Internet and telephone sales

 Store keeper, who typically sells direct on behalf of the producer

 Distributor (also called wholesaler), who sells to retailers

 Retailer (also called dealer or reseller), who sells to end customers

 Advertisement typically used for consumption goods

There have also been some innovations in the distribution of services. For example,

There has been an increase in franchising and in rental services - the latter offering

Anything from televisions through tools. There has also been some evidence of service
integration, with services linking together, particularly in the travel and tourism sectors. For
example, links now exist between airlines, hotels and car rental services. In addition, there
has been a significant increase in retail outlets for the service sector. Outlets such as estate
agencies and building society offices are crowding out traditional grocers from major
shopping areas.

Sales Forecast:

 It is estimate of a company’s sale for a3s0pecified future period.

  Sales forecasting provides the starting point for assumptions used in various planning
activities.

 It is used for the short-term financial control systems. The financial budget is dependant
upon the sales forecast for the projected revenue figures.

Good sales management is one of the simplest ways to increase your revenue and profitability.

Sales management is about leading the people and process your company uses to sell prospects
and service customers. Responsibilities include

• Building the right sales strategy

• Hiring the right team

• Creating the right compensation plans, territories and quotas

• Setting the right projections

• Motivating your team

• Tracking revenue against goals

• Resolving conflicts

• Training and coaching sales reps

• Managing processes

• Getting the sale!

31
Why is there a sales management chapter in the Marketing Process?

• Your sales team is the voice of your company. In fact, your reps may be the only
people with direct customer interaction. They may be responsible for prospecting,
selling and managing existing customers. They control the dialogue with your market,
gather feedback, and deliver on your value proposition and brand promise.

• The sales team will make or break your marketing efforts. Even if you’re not
personally responsible for the sales team, it’s important to understand their role and
draw on that knowledge to create better marketing programs.

• Sales and marketing serve one purpose: to generate revenue. They should be
completely aligned in their understanding of customer needs, their messages, and the
process they use to identify prospects, sell, close and manage. They should work
together as a unit, providing valuable feedback to improve all of their strategies.

• When departments aren’t aligned, your company wastes time and opportunity. For
example, when salespeople rewrite literature and tools to their liking, your messages
are diluted and salespeople are doing something other than selling.

Small improvements in your team’s skills and processes can often produce substantial results.
Even great salespeople can benefit from coaching; if your team is struggling, there’s room for
improvement. And with the right attention to your pipeline and goals, you can make sure
you’re on track to hit your numbers and make adjustments as needed.

Best Case Neutral Case Worst Case

Your sales team is a There are strong and weak Your sales team isn’t strong.
revenue machine. They players on the sales They may not have a
have the right skills and team.Some require a lot dedicated sales manager to
experience; they’re more hand-holding than help improve performance.
motivated to come in each you’d like; there isn’t They may not have enough
day and close business.You always time to give them experience, especially if
coach them regularly to the help they need. As a you’re
improve

32
 their performance. When result, their close ratios are a small company that can’t
problems arise, they’re much lower. They’re yet afford the big
dealt with swiftly.The sales probably not hitting their hitters.You have a pipeline
team does a great job quotas, but they’re not a but don’t know what’s
delivering the company’s major liability to the happening with prospects; it
value proposition, brand company. takes longer than it should
strategy and messages. to close deals. You suspect
you need an entirely new
sales operation.

Key concepts & steps

Before you begin

It’s always a good time to increase your focus on sales management. Your sales process and
CRM are important tools that can help you manage your team, forecast results and keep your
team on course

Create the right compensation plan and tie it to your revenue goals

Great salespeople want to make money. Tie the plan to your revenue goals and make sure that
you’re compensating your reps for the right things. For example, if your reps don’t earn

33
commission for managing “house” accounts, they’ll spend their time going after new business
and you could lose valuable existing customers.
Set realistic quotas

Be realistic about what a salesperson can accomplish in a set timeframe. Good salespeople
can be demotivated by unrealistic quotas, which can lead to turnover.

Hire the right people

To build a great team, start with a strong recruiting effort. Create a detailed job description so
you know exactly what you need in your candidates. Cast a wide net, use a thorough
interview process, and go after the candidates you really want.

Coach and provide feedback

A good manager actively works with the sales team. Train your reps thoroughly and coach
them to improve their skills. Go on calls, establish performance measurements, and provide
feedback. If a rep has trouble in a particular area, create an action plan and measure
improvement.

Generate good reports

You’ll need good sales reports to measure team and individual progress. Yet you don’t want
your sales reps to spend valuable sales time creating manual lists and reports. Instead,
develop automated reporting processes – for example, create reports in your CRM system.
With good reports, you can see problems much earlier and take action more quickly.

Motivate!

Good sales reps want to get better – encourage them to read, attend seminars, network, and
keep refining their skills.

34
Keep working with your team, improving their skills, and adjusting as needed. Hire the right
people, manage them well, and enjoy their success!

35
 RESEARCH METHODOLOGY

5.1 Population

Sr. no. Respondent Number of respondents

1. Users 100

5.2 Sampling Method/Technique /Sample size, sampling frame/unit ,

Different types of data analysis techniques used in the research project should be specifically
mentioned. Such as:
• Basic analytical tools, which include Tabular Analysis, Graphical Analysis,
Percentage Analysis.
Sample procedure:-

I have prepared this project as descriptive type, as the objective of the study.

5.3 Sources of data

It involves use of secondary and primary sources such as web and other research articles
printed by various companies and other journals and magazine.

5.4 Methods of data collection

Primary data:
It is original data, first hand and for the specific purpose of the research project.
For this project, I have used the following common research instrument:-

❖ Questionnaire:
Questionnaire development is the critical part of primary data collection
job. For this I have prepared a questionnaire in such away that it is able to collect all
relevant information regarding the project.
In this questionnaire, I have used mostly close-ended questions that are
easier to be answered by respondents (consumers) and also easier for interpretation
and tabulation & one open-ended question to take the opinion of the respondents in
their own words. The questions were asked to the consumers covering perception
towards their purchase, price of the product, purpose for using the product,
characteristic of the product, brand image, effectiveness of the advertisements, sales
promotional activities, overall opinion about the product, etc.
For collecting the answers from the above questionnaire, I have used the
following common method:-
36
  Interview:
It is the most common method for contacting consumers & collecting
primary data. For this project I have used following type of interview:-

 Personal interview:
It is the most extensively used method. It enables better control of the sample and
ensures answers from the respondents. It also provides for a tactful approach to the
respondent since it is based on a person-to-person talk. But this method is generally
more expensive and time consuming.
For this project each interview was taking 15 to 20 minutes to complete.
Interview was also delayed due to un-availability of respondent in house.

Secondary data.
It was collected to add the value to the primary data. Data regarding IMRB,
International (Indian Marketing Research Bureau) history, its profile and other
necessary records and information was collected by referring to website, magazines,
annual reports, reference books, daily newspapers, etc.

5.5 Tools and techniques of analysis E.g Ratio Analysis

Basic analytical tools, which include Tabular Analysis, Graphical Analysis, Percentage
Analysis.

5.6 Statistical/ Instrument used E.g Ms. Excel

37
 CHATER 2

COMPANY PROFILE

Tata Motors Limited is India's largest automobile company, with consolidated revenues of
Rs.70, 938.85 crores (USD 14 billion) in 2016-17. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The company is the world's fourth largest
truck manufacturer, and the world's second largest bus manufacturer.

The company's 24,000 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 indeed cuts across the length and breadth of India.
Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and
Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, 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. 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
38
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,
and subsequently the remaining stake in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a
global leader in body-building for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. In 2006, Tata Motors entered into joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market the

company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched in Thailand in
2008.

Tata Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South
America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, Senegal and South Africa.

The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centers in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a
new segment by launching the Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT
and transportation cost). 39
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in
India today. The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.

Tata Motors is equally focused on environment-friendly technologies in emissions and

alternative fuels. . It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation

Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision
tooling and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.

Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company's support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative health care. The goal of environment protection is achieved through tree plantation,

conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies in our vehicles and operations for constantly enhancing environment

care. 40
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Various Products of TATA Motors

[1] Passenger cars and utility vehicles

Tata Indigo SW

[2] Concept vehicles

Tata Cliffrider

[3] Commercial vehicles

41
 Tata 1616 Starbus Tata Marcopolo Buses in the Delhi BRT

Tata Star Bus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations
in Delhi, Mumbai, Pune, Udaipur and Indore

Supply Chain
Supply Chain of Automobile Industry:

42
Source: ImaginMor, Inderscience Enterprises Ltd and United Nations Industrial Development
Organisation
The supply chain of automotive industry in India is very similar to the supply chain of the
automotive industry in Europe and America. The orders of the industry arise from the bottom
of the supply chain i. e., from the consumers and goes through the automakers and climbs up
until the third tier suppliers. However the products, as channelled in every traditional
automotive industry, flow from the top of the supply chain to reach the consumers.
Automakers in India are the key to the supply chain and are responsible for the products and
innovation in the industry.
The description and the role of each of the contributors to the supply chain are discussed
below. Third Tier Suppliers: These companies provide basic products like rubber, glass,
steel, plastic and aluminium to the second tier suppliers.
Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier
Suppliers and OEMs. They work on designs provided by the first tier suppliers or OEMs.
They also provide engineering resources for detailed designs. Some of their services may
include welding, fabrication, shearing, bending etc.
First Tier Suppliers: These companies provide major systems directly to assemblers. These
companies have global coverage, in order to follow their customers to various locations
around the world. They design and innovate in order to provide “black-box” solutions for the
requirements of their customers. Black-box solutions are solutions created by suppliers using
their own technology to meet the performance and interface requirements set by assemblers.
First tier suppliers are responsible not only for the assembly of parts into complete units like
dashboard, breaks-axel-suspension, seats, or cockpit but also for the management of
secondtier suppliers.
Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs): After
researching consumers’ wants and needs, automakers begin designing models which are
tailored to consumers’ demands. The design process normally takes five years. These
companies have manufacturing units where engines are manufactured and parts supplied by
first tier suppliers and second tier suppliers are assembled. Automakers are the key to the
supply chain of the automotive industry. Examples of these companies are Tata Motors,
Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main
focus of these companies.

43
Dealers: Once the vehicles are ready they are shipped to the regional branch and from there,
to the authorised dealers of the companies. The dealers then sell the vehicles to the end
customers. Parts and Accessory: These companies provide products like tires, windshields,
and air bags etc. to automakers and dealers or directly to customers.
Service Providers: Some of the services to the customers include servicing of vehicles,
repairing parts, or financing of vehicles. Many dealers provide these services but, customers
can also choose to go to independent service providers.

Segmentation
Product and Service Segmentation
Source: Society of Indian Automotive Manufacturing (SIAM)
The automotive industry of India is categorised into passenger cars, two wheelers,
commercial vehicles and three wheelers, with two wheelers dominating the market. More
than 75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold were
motorcycles and about 12% were scoters. Mopeds occupy a small portion in the two wheeler
market however; electric two wheelers are yet to penetrate.
The passenger vehicles are further categorised into passenger cars, utility vehicles and
multipurpose vehicles. All sedan, hatchback, station wagon and sports cars fall under
passenger cars.

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Tata Nano, is the world’s cheapest passenger car, manufactured by Tata Motors - a leading
automaker of India. Multi-purpose vehicles or people-carriers are similar in shape to a van
and are taller than a sedan, hatchback or a station wagon, and are designed for maximum
interior room. Utility vehicles are designed for specific tasks. The passenger vehicles
manufacturing account for about 15% of the market in India.
Commercial vehicles are categorised into heavy, medium and light. They account for about
5% of the market. Three wheelers are categorised into passenger carriers and goods carriers.
Three wheelers account for about 4% of the market in India.

Source: Society of Indian Automotive Manufacturing (SIAM)

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Geographic Segmentation

Source: Department of Road Transport & Highways, *ImaginMor estimates

The total number of new vehicles registered in the 28 states and 7 union territories of India in
the year 2008 were about 106,591,000. The diagram above displays the registration of new
vehicles in various states and union territories. About 16 states and 1 union territory had over
a million new vehicles registered. Tamil Nadu had about 16 million new vehicles registered,
Maharashtra had over 13 million, and Gujarat had over 10 million. About 91% of these
vehicles are non-commercial vehicles purchased by households looking for a two wheeler, or
a car. Only about 9% of new vehicles registered are used for commercial purposes. Details of
category wise new vehicle registrations in the various states and union territories are
displayed in Appendix 1. The number of new vehicles registrations has grown by about 66%
in the past five years.

Key Competitors
Major Players

46
47
Source: Society of Indian Automotive Manufacturing (SIAM) Players

Key Factors
Key Sensitivity Consumer Sentiment Index
Description: Customer Sentiment Index, 12 month rolling average of the Index; historical and
forecast data and analysis.
End customers are very important to ensure the survival of the Motor Vehicle Manufacturing
industry. Economic downturns and other events can affect the expenditure decision of
households. When customers are not happy or optimistic about the future of the economy,
they will tend to postpone expenditure until times are better. In 2016-17, customer sentiment
is expected to fall, which will have a brunt on the augmentation in demand of cars.
48
Domestic Goods Price – Metal – Iron and Steel Description:
The price of input such as steel.
Steel is a major input used when manufacturing a motor vehicle. Rises in the price of steel
puts cost pressures on manufacturers, which often leads to a fall in profitability. Over the past
five years, the price of steel has been rising rapidly. These rises in price eventually pass from
the manufacturers to the end customers’.
Import and Export Taxes (Duties) – Motor Vehicle Tariffs
Description: Tariff rates applicable to the industry
High taffies may restrict flow of trade but may attract investment if domestic market is big
enough and growing. Over the last few years India’s tariff policies and conditions of import
of vehicles have served the purpose of attracting investments. Industry is keen that the
existing tariff structure roadmap and conditions of import of vehicles are retained without any
modifications because of certain systematic deficiencies which make manufacturing less cost
competitive in India as compared to some of the neighbouring countries like China, Thailand,
Indonesia, etc.
Wold Price - Energy – Crude Oil
Description: The world price of crude oil, $US/barrel, and price analysis.
The price of oil and petrol affect the driving habits of consumers and the type of car they buy.
Over the past five years, the price of petrol has been influenced the buying decision of
motorists, who are switching more to fuel efficient options. These include cars that run on
liquefied petroleum gas (LPG), diesel and small cars that achieve better mileage. The trucking
sector has also been struggling with the rise in the price of fuel, which has put enormous
pressures on their costs.
Key Success Factors
The Key Success factors in the Motor Vehicle Manufacturing industry are:
• Efficiency factor - Improve labour productivity, labour flexibility, and capital efficiency
• Resource Availability - Quality manpower availability, infrastructure improvements,
and raw material availability
• Effective cost controls - Close relationship with supplies and goods distribution
channels.
• Establishment of export markets - Growth of export markets
• Having an extensive distribution/collection network - Goods distribution channels
• Successful industrial relations policy - Ethical and tactical industrial relations

49
• Access to the latest available and most efficient technology and techniques - The
degree of investment in technological improvements and product development
• Optimum capacity utilisation - The level of plant utilisation
• Management of high quality assets portfolio - Understanding implications from
Government policies

50
 CHAPTER 3
DATA ANALYSIS AND INTERPRETATION

Que1: How did you come to know about Tata Motor’s. ?

• Friends/relatives

• Newspapers/magazines stalls
• Internet

• Advertisement

• Hoardings

Friends/relati
Hoardings ve
4%
12%

Advertisemen
t
30% Newspaper/
Internet Magazine
9% Stalls
45%

Consumer Awareness
As per our study suggested that the consumer awareness of the Tata Motor’s. increasing due
to of the advertisement Through digital media as well as one aspect of the consumer
awareness of the Tata Motor’s. also increases due to of its Positioning though Newspaper and
Magazine stalls. Increasing level of consumer awareness is also help any organisation to
retain more and more consumer base.

51
Que2: Why do you prefer this brand?

Price Brand name

Quality Sales Positioning

Easily available Schemes/offers

Packaging Others

Others 6

Packaging 7

Scheme / Offers 13

Easily Available 9

Sales promotion 22

Quality 20

Brand Name 11

Price 12

As per our study suggested that people prefer Tata Motor’s. because Sales Positioning of the
Tata Motor’s. is always has a top preference of the people which has very positive impact on
the sales of Tata Motor’s. . As we seen from the tabular graph and the data chart which is
shown above of this interpretation, As one of the objective of our study also to justify this
term with the sales Positioning .

22% of the people purchasing Tata Motor’s. because they like the Positioning al strategy of
the company while 20% of the people prefer Tata Motor’s. because of the content quality of
the magazine. Since brand name of the Tata Motor’s. also making positive impact towards
the sales Positioning , as per out study suggested that 11% of the people like the brand of Tata
Motor’s. so in this area Tata Motor’s. need to improve.

52
Que3: Would you recommend company’s products to others?

1 Yes

2 No

No
2%

Recommendation
Yes
98%

In this study my primary research result suggested that 98% of the people out of 100 will
recommend to others for purchasing of the Tata Motor’s. while only 2% are those population
area who is either don’t want to give this kind of recommendation due to of personal or other
reason. This is good sign for the company to grow faster than the competitor with the help of
word of mouth publicity.

4. How does the Tata Motor’s. marketing there selves in the Indian market

A. Direct Marketing

B. Referential Marketing

C. Mass Marketing
Logistics Marketing

Direct Marketing 64

Referential Marketing 32

Mass Marketing 5

53
 Mass Marketing
5%

Referential
Marketing
32%
Direct Marketing
63%

Logistics Marketing

To analyzing the critical success factor for the firm and the market expansion strategy of the
Tata Motor’s. would be also analyzed with the marketing strategy that the firm following as
per our study suggested that 65% of the people believe that the company is spreading there
wings through the Direct Marketing while the 32% of the people suggested that for this kind

5 Market expansion strategy for Tata Motor’s. what it means for your

A. Increasing Number of Trains on Move

B. Increasing Permission To Access Ports
C. Increasing Strategic Alliance Sidings
D. More Containers.
Market Expansion Strategy

Increasing Number of Trains on Move 43

Increasing Permission To Access Ports 26

Increasing Strategic Alliance Sidings 17

More Containers. 14

54
 More Containers.
14%

Increasing Strategic
Alliance Sidings Increasing Number
17% of Trains on Move
43%
Increasing
Permission To
Access Ports
26%

Market Expansion Strategy

As per our objective of this project to find out what are the market expansion strategy that
Innovative logistics has, so adding to this form our primary data analysis 43% of the people
suggested that from Tata Motor’s. company increasing Number of trains move would showing
there expansion very well so one of the parameter for market expansion. Other side of the coin
is 26% of the people suggested that increasing permission to access of ports in the country
would be more focus towards the market expansion strategy of the firm.

Q6 : Which Positioning al activities do you want in near future from Tata Motor’s. rank
in a preference order?

1. Price-off
Positioning

2. Premium offers

3. Couponing

4. Loyalty schemes

5. Guarantees

6. Welcome-Cocktail
55
 Future Promotional Activity Excellent Future Promotional Activity Very good
Future Promotional Activity Good Future Promotional Activity Fair
Future Promotional Activity Worst Future Promotional Activity Worst

100 100 100 100 100 100

43 47
3827 27 18 39 1721
32
201422 2122
38
1415 6 7 9 1819 17 10 5 12 12 7
3
Price-off Premium offers Couponing Loyalty schemes Guarantees Welcome-Cocktail
Promotion

As per our study suggested that the in future people are very particular about the some of the
Positioning al strategies, for the price off Positioning 38 people are said they want good
report on this as a price Positioning al strategies. 39 people out of 100 people suggested that
they want premium offers which gives extra leverage to the Tata Motor’s. customer.

Q7 According to you what is the Sales Positioning and schemes by Tata Motor’s.
Frequency of sales Positioning /schemes

sAttractiveness of sales Positioning /schemes

Innovativeness of sales Positioning

Promptness of response to competitive sales schemes

Sufficient supply of stocks provided with schemes/offers

56
As per our study suggested that the quality of sales scheme of the Tata Motor’s. is very
satisfactory while we analyze the data, Innovativeness and the Frequency of sales Positioning
is the biggest factor which contributed to the sales Positioning of the Tata Motor’s. while
this has been proved through the which we applying above 93.5% chances of the getting best
deal through these situation. While as per the correlation test also showing the sufficient stock
would necessarily to have when any new sale Positioning launched by the Tata Motor’s.
these factor are highly correlated to each other which is about to 99.3%.

Q8 How does the distribution and marketing there selves in the Indian market for

their Tata Motor’s. sales D. Direct Marketing

E. Referential Marketing

F. Mass Marketing

57
 70
Direct Marketing, Sales Strategy
60 64

50
40
Referential
30 Marketing , 32
20
10
Mass Marketing, 5
0
Direct Marketing Referential Marketing Mass Marketing

To analyzing the critical success factor for the firm and the market expansion strategy of the
Cooperative channel would be also analyzed with the marketing strategy that the firm
following as per our study suggested that 65% of the people believe that the company is
spreading there wings through the Direct Marketing while the 32% of the people suggested
that for this kind of B2B segment referential marketing would be very much successful so this
is the one of marketing strategy that Tata Motor’s. distribution following.

Q 9. Quality of Sales Promotion and schemes

Frequency of sales promotion/schemes

Attractiveness of sales promotion/schemes
Innovativeness of sales promotion
Promptness of response to competitive sales schemes
Sufficient supply of stocks provided with schemes/offers

58
 Frequency Attractiveness Innovativeness competitive Sufficient
of sales of sales of sales sales supply of
promotion schemes stocks
promotion promotion
Excellent 43 64 43 75 67
Very good 32 11 32 10 10
Good 1 6 12 9 7
Fair 9 6 2 1 8
Poor 6 7 9 1 1
Don’t Know 7 4 1 2 4
Refused 2 2 1 2 3

As per our study suggested that the quality of sales scheme of the Tata Motor’s. in North is
very satisfactory while we analyze the data, Innovativeness and the Frequency of sales
promotion is the biggest factor which contributed to the sales promotion of the Tata Motor’s.
while this has been proved through the which we applying above 93.5% chances of the getting
best deal through these situation. While as per the correlation test also showing the sufficient
stock would necessarily to have when any new sale promotion launched by the Tata Motor’s.
these factor are highly correlated to each other which is about to 99.3%.

59
Q 10: Which Marketing &promotional activities do you want in near future from Tata
Motor’s. rank in a preference order?

1 Price-off Promotion

2 Premium offers

3 Couponing

4 Loyalty schemes

5 Guarantees

6 Welcome-Cocktail

Future Promotional Activity

Excellent Very good Good Fair Worst

Price-off
Promotion 14 15 38 27 6 100

Premium offers 27 18 39 7 9 100

Couponing 18 19 43 17 3 100

Loyalty schemes 17 21 47 10 5 100

Guarantees 12 32 20 14 22 100

Welcome-
Cocktail 21 22 38 12 7 100

60
As per our study suggested that the in future people are very particular about the some of the
promotional strategies, for the price off promotion 38 people are said they want good report
on this as a price promotional strategy. 39 people out of 100 people suggested that they want
premium offers which gives extra leverage to the Tata Motor’s. customer.

61
 FINDINGS AND INFERENCES

It is found that SUV is gaining acceptance in the market of Delhi because it is an IT hub and
also it is known with a research conducted by income tax which says around 15% of India’s
total tax payers that earn more than 10 lakhs are found in Delhi, that itself means that the
market for big cars is good in Delhi.
People are more in the business and they focus mostly on safety and comfort that they
find in SUV’s that even support them for long comfortable journey. Other findings:
• It is found that lady customers show more interest in sedan then SUV’s.
• SUV is more popular in foreign countries
• Travel agencies also focus on more of SUV’s because those cars are used for long
highway drives.
• In Delhi the top two SUV’s that have maximum market share is Mahindra Scorpio &
Toyota Innova.
• Ford endeavor recording the highest sales in October 2008, capturing a market share of
27.65 per cent. The Ford Endeavour has been the market leader in terms of cumulative
sales of SUVs in 2008. It recorded sales of 3,007 units from JanuaryOctober 2008.
• Complaints regarding drivers comfort were reported by 2 respondents who had the
experience of long drive.
• People who don’t go for status and have low budget and want style prefer Scorpio
then other SUV’s.
• Youngster likes Ford Endeavor and Scorpio because of the style but if the budget is
high they would like to buy endeavor otherwise Scorpio will be a perfect match.
• Honda CR-v symbolizes the comfortable drive for elite class and is considered as the
status and is looked upon as the dream car for most of the SUV lovers.
• Tata Safari is the perfect match for those who believe in the indigenous techonology,
good style, comfort, status, power and safety, economy, customer service. That means
Tata Safari is the blend of all the parameters that a person looks in SUV’s.
• Most of the travel agency that use SUV’s as tourist cars they look upon Mahindra
Scorpio and Toyota Innova because of the low maintenance cost and good mileage.
• Maximum number of SUV that is seen on the roads of Delhi is Mahindra Scorpio.

62
 CHAPTER 4

RECOMMENDATIONS AND CONCLUSION

I have found in my study that most of the respondents who like to go for tata’s “tata motors”
belongs to income group of 5000 to 15000, so it can be said that “tata motors” will be most
welcome by this income group of people.
• Most of the respondents who belongs to the private sector or govt. Sector having
greater acceptancy level for “tata motors” in delhi city and they would also like to go
for “tata motors”.
• I have found that all the respondents of delhi city which covered under my study are
well aware about tatas “tata motors”.
• In my study i have found that above 90% of respondents like the tata”s “tata motors”
car. Those respondents who would not like to go for “tata motors” , they are also like
the tata”s “tata motors” for various reason like affordability, brand name,
shape/design this shows the preference of the respondents in delhi city.
• More than half of the respondents would like to buy “tata motors” in next 1 to 2 year.
Respondents who like to buy “tata motors” are curiously waiting for its launching,
respondents like to go for “tata motors” as it’s most affordable cost and of course due
to its brand name that is tata.
• Respondents also prefer “tata motors” due to its promise of good mileage about
21km/litre so, if tata will fulfill the promise and if continuously maintain the mileage
of its car the “tata motors” than it’ll surely helpful to attract more customer.
• Respondents who are preferring the second hand car , after the launching of tata’s rs.
1lakh car the “tata motors”, they would also like to go for “tata motors” due to its low
cost and of course due to its attractive shape and design , its newness as compare to
second hand car.

• More than half of the respondents believe that “tata motors” is their dream car, so it
shows tata’s “tata motors” car will be warmly welcome by the people of delhi city.

63
 BIBLIOGRAPHY

Books

• Keller, K. L. (1998) Strategic Brand Management. Prentice Hall. New Jersey.

• Laakso, H. (1999) Brandit kilpailuetuna – miten rakennan ja kehitän tuotemerkkiä.
Helsinki.
• Niemi, O. (2003) Yrityksen brändinkehitys & tutkimuksen antamat eväät, Hermia.
Brändiseminaari, Stella Business Park. Esitelmä 5.6.2003
• Nunnington, N. & Kennie, T. (2002) Property Valuation & Management: In the eye of
the tornado of change: A model of the major challenges facing the real estate
profession.
• Presentation. FIG XII International Congress, Washington D.C., April 19–26 2002.
• Riihimäki, M., Lehtinen, E., Muroma, M., Häme, T. & Näkyvä, T. (2001)
Brandiajattelu kiinteistöalalla. [Brand concept in the real estate business] VTT
Julkaisuja 847.
• Technical Research Centre of Finland. Espoo.

Book & Journal

Harvard business Review
Wharton Business model for change
Management Shima Shangi Human behavior and
work culture.

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