3. The automotive industry in India is one of the largest in the world and one of the fastest
growing globally .
According to recent reports, India overtook Brazil and became the sixth largest
passenger vehicle producer in the world ,growing from 16 to 18 percent to sell around
three million units in the course of 2011-12.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the
country the second (after China) fastest growing automobile market in the world.
The dominant products of the industry are two-wheelers with a market share of over
75% and passenger cars with a market share of about 16%.
Both exports and imports of passenger cars are increasing. The demand determinants of
the industry are factors like affordability, product innovation, infrastructure and price of
fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle
stage is growth. With a rapidly growing middle class, all the advantages of this sector in
India are yet to be leveraged.
According to the Society of Indian Automobile Manufacturers, annual vehicle sales are
projected to increase to 5 million by 2015 and more than 9 million by 2020.By 2050, the
country is expected to top the world in car volumes with approximately 611 million
vehicles on the roads.
5. • Tata Motors Limited is India's largest automobile company, with consolidated revenues
of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. 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. It is the world's fourth
largest truck and bus manufacturer.
• The Tata Motors Group’s over 55,000 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.'‘
• 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.
• 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, CIS, Russia and South America. It has franchisee/joint venture assembly
operations in Bangladesh, Ukraine, and Senegal.
• QUALITY POLICY : TATA Motors is committed to maximizing customer satisfaction &
strives to achieve the goal of excellence through ongoing development, manufacture and
sale of reliable ,safe, cost effective quality products & services of International
standards, using environmentally sustainable technologies for improving levels of
efficiency and productivity within the plants and ancillaries. TATA Motors also had a
commitment towards improving the quality of life of its employees both within and
outside its plants and offices through improved work practice & social welfare schemes.
- Ratan N TATA
6.
7.
8.
9.
10.
11.
12. STRENGTHS:
•The brand is very well established.
•Tata’s management is strengthened by the
collective experience of its partners and
acquired companies.
•The company has a strategy in place for the
next stage of its expansion. Not only is it
focusing upon new products and
acquisitions, but it also has a programme of
intensive management development in place in
order to establish its leaders for tomorrow.
• Creation of an entirely new segment with
TATA NANO.
•Acquisition of Jaguar and Land Rover.
WEAKNESS:
•The company's passenger car products are based
upon 3rd and 4th generation platforms, which
put Tata Motors Limited at a disadvantage with
competing car manufacturers.
•Tata has not got a foothold in the luxury car
segment in its domestic market.
•Positioning of TATA NANO .
•One weakness which is often not recognised is
that in English the word 'tat' refers to items
which are cheap and of bad quality. A brand
sensitive British consumer might think twice
before going for such a brand.
OPPORTUNITIES:
•The Nano could sell well in other geographic
markets like that of China.
•Jaguar and Land Rover provide Tata with an
opportunity to establish itself in the luxury
segment in the upcoming years.
•No major player in the electric car segment in
the domestic market so ‘Indica Vista electric’
and ‘Megapixel’ could just be the right answer
for Indian consumers.
THREATS:
•Maruti Suzuki and Hyundai are major rivals in
the small car market.
•Powerful competitors for the luxury market
including Honda, Toyota, Ford and Volkswagen
are beginning to push into the Indian market.
•Tata’s competitive price advantage will be
under pressure as environmental regulations are
tightened and material costs increase.
14. The promotion functions carried out by TATA
PCBU can be divided into
ATL – Above the line promotions which include print
ads( newspaper ,magazines) , T.V , radio
BTL – Below the line promotions which include
exchange fair, rural fair, loan fair, society
activities, corporate display activities etc..
15. 1. To study the preference of young employees
while buying a car so as to develop a
promotional strategy for TATA PCBU.
2. To analyze the potential of using two wheeler
mechanics as referrals for TATA NANO in the
2 wheeler exchange business.
16. RESEARCH OBJECTIVE 1 : To study the preference of young
employees while buying a car so as to develop a promotional
strategy for TATA PCBU.
Research Design : Descriptive
Population : Young Employees of
TATA STEEL
TATA MOTORS
AEGIS
TATA CUMMINS
BANKS ( ICICI, SBI, PNB )
Sampling Unit: Individual employee
Sample size : 250 (50 from each company)
Sampling technique : Convenience Sampling
Nature of data : Primary
Location of study : Jamshedpur
Duration of study : 6 weeks
27. COMPANY TIME OF
PROMOTION
COLOUR OF
PRODUCTS
HIGHLIGHTS PRODUCTS
SUGGESTED
AEGIS DIWALI OR
BONUS
BLACK,RED AESTHETICS &
SAFETY
NANO,
INDICA
TATA
MOTORS
DIWALI OR
BONUS
BLACK,RED AESTHETICS &
SAFETY
INDICA
VISTA,INDIGO
TATA STEEL DIWALI OR
BONUS
BLUE,BLACK SPACE &
AESTHETICS
MANZA,
INDIGO
ECS,SAFARI
TATA
CUMMINS
DIWALI OR
BONUS
BLACK,RED SPACE &
AESTHETICS
MANZA,INDI
GO ECS,
SAFARI
BANKS DIWALI WHITE,BLACK
RED
SAFETY,
AESTHETICS &
SPACE
INDICA
VISTA,
INDIGO
28. Use black & red products in ATL promotions.
Organizing display activities and campaigns as
BTL promotions taking into account the findings
from the research.
Heavy promotions during Diwali and at the time
employees receive bonus.
The findings related to down payments and EMI’s
be analyzed by higher authorities so as to make
convenient offerings to the consumers.
Corporate offers for the employees of TATA on
respective products as mentioned in the findings.
30. RESEARCH OBJECTIVE 2 : To analyze the potential of
using two wheeler mechanics as referrals for TATA
NANO in the 2 wheeler exchange business.
Research Design : Exploratory & Descriptive
Population : Two wheeler mechanics
Sampling Unit: Individual mechanic
Sample size : 77
Sampling technique : Convenience Sampling
Nature of data : Primary and Secondary
Location of study : Jamshedpur
Duration of study : 4 weeks
31. SECONDARY DATA ANALYSIS:
While going through sales data of the company in Jamshedpur , it
was found that there is a huge potential for automobile exchange
business and it has been growing in the recent months.
It was also seen that the 2 wheelers exchanged were less in number
as compared to 4 wheelers.
TATA NANO, being a special product for TATA is required to be
sold in high volumes through the exchange business . It can be
seen that there have been only a few automobiles exchanged with
NANO in the recent months.
A special exchange offer was introduced only for TATA NANO in
the month of FEB-2012 so as to boost up sales and it can be seen
that the exchange business of TATA NANO increased in the
following month.
The Territory Sales Manager , when informed about the same, had
a talk with the Area Sales Head and his team and then it was
decided to focus on the exchange of TATA NANO with 2 wheeler
vehicles as this was a good opportunity to be exploited.
32. 12 9
17 14
4 7 10
46
106
48 50 47
0
20
40
60
80
100
120
APRIL
MAY
JUNE
JULY
AUGUST
SEP
OCT
NOV
DEC
JAN
FEB
MARCH
TOTAL EXCHANGE
34. 2 wheeler mechanics were contacted area wise
so as to invite them for a meeting .
Following areas were taken into consideration :
Telco
Govindpur
Tinplate
Golmuri
Sakchi
Bistupur
Kadma
Mango
35. * Willingness to work with TATA for mutual
benefit ?
* Willingness to work as referrals for TATA
NANO in the 2 wheeler exchange business ?
90%
10%
YES
NO
55%
45% YES
NO
36. * If no, the reason for the same ?
* Willingness to work as referrals for TATA NANO if
offered a gift amount for sale of each car:
60%
7%
24%
9%
fear of
shrinking 2
wheeler
business
personal
reasons
no time for it
others
92%
8%
YES
NO
37. TATA NANO banners portraying the exchange offer
were put on all the mechanic shops.
Mechanics were told how to refer TATA NANO to the
2 wheeler owners.
‘Panthers’ were given the duty of regular follow ups
and each area had a different panther to administer
sales.
If a panther got a call from a customer regarding the
offer , he was to inform the Sales Office from where
further follow ups were done.
Subsequently, the mechanic had to call up the panther
and inform him about the referral.
If the sale was made, the mechanic was to be given a
gift amount of Rs 2000.
39. THERE IS HIGH POTENTIAL IN THIS
CHANNEL AS 5 TATA NANO’S WERE SOLD
USING MECHANICS AS REFERRALS IN A
PERIOD OF 4 WEEKS .
40. The information regarding the sale of TATA
NANO via a mechanic should be conveyed to
other mechanics in subsequent meetings so as to
encourage them.
Considering long term prospects, a better system
needs to be developed for the delivery of gift
amount to the concerned mechanic with ease and
also to verify the authenticity of the claim made by
him.
Regular follow up should be done and it should be
made sure that the banners are put on mechanic
shops.
41. Only a few areas in the city were targeted for
this project as it had to be completed within the
given time period.
The success of this project depends solely on
the willingness of the mechanics to work as
referrals.