33490642-TATA-MOTER-Customer-satisfaction-at-service-station.pdf

SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE

DEGREE IN INTERNATIONAL BUSINESS

SUBMITTED BY:AMIT KRISHNA

Roll No. : A1802007C06

INDUSTRY GUIDE FACULTY GUIDE Mr. RANVIJAY KANT Mr. NISHANT KUMAR RAI Marketing ManagerTata Motors, Jamshedpur.

REVIEW OFCUSTOMER SATISFACTIONAT THE SERVICE STATION

OF TATA MOTORS

1

AMITY INTERNATIONAL BUSINESS SCHOOL NOIDA

AMITY UNIVERSITY UTTAR PRADESH

TO WHOM IT MAY CONCERN

This is to certify that DUBBHI CHOUDHARY, a student of Amity International Business School, Noida, undertook a project on REVIEW OF CUSTOMER SATISFACTION AT THE SERVICE STATION OF TATA MOTORS at MITHILA MOTORS JAMSHEDPURfrom 8/5/2008 to 8/7/2008.Mr.AJIT KUMAR has successfully completed the project under the guidance of Mr. RAVI KANT. He is a sincere and hard-working student with pleasant manners.

We wish all success in him future endeavours.

Signature with dateRAVI KANTMARKETING MANAGERTATA MOTORS, JAMSHEDPUR

2

3

CERTIFICATE OF ORIGIN

This is to certify that Mr. Dubbhi Choudhary, a student of Post Graduate Degree in MBA IB (2007-09), Amity International Business School, Noida has worked in the USAGE OF SPECIAL SKILL AND TOOLS IN MARKETING FOR BETTER EFFICIENCY OF PRODUCT AND CUSTOMER SATISFACTION REVIEW, under the able guidance and supervision of Mr. Ranvijay Kant, Marketing Manager, Mithila Motors, Jamshedpur.The period for which he/ she was on training was for 8 weeks, starting from 8/5/2008 to 8/7/2008. This Summer Internship report has the requisite standard for the partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature SignatureNISHANT K. RAI DUBBHI CHOUDHARY

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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. RANVIJAY KANT, Marketing Manager, Tata Motors, Jamshedpur for his able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of Tata Motors, Jamshedpur, for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Prof.Mr. Nishant Kumar Rai of my institute, for his continued guidance and invaluable encouragement.

Signature

DUBBHI CHOUDHARY

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TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch. 1.0 Executive Summary. 6

Ch. 2.0 Research Methodology 7-11 2.1 Primary Objective(s) 2.2 Hypothesis 2.3 Research Design2.4 Sample Design2.5 Scope of the Study2.6 Limitations

Ch. 3.0 Critical Review of Literature.. 12-13

Ch. 4.0 Company Profile . 14-264.1 Industry Profile4.2 Swot Analysis

Ch. 5.0 Data.. 27-285.1 Collection5.2 Primary Data5.3 Secondary Data

Ch. 6.0 Findings & Analysis. 29-46

Ch. 7.0 Recommendations 47-49

Ch. 8.0 Bibliography. 50

Ch. 9.0 Annexure.. 51-589.1 Tables9.2 Graphs

Ch. 10.0 Case Study........................................ 59-66

Ch. 11.0 synopsis of the project.. 67

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CHAPTER 1

EXECUTIVE SUMMARY

The automotive industry is at the centre of Indias new global dynamics. TATA

MOTORS Commercial Vehicle Business Unit (CVBU) is a division of TATA

MOTORS, having a TATA MOTORS product range covers Medium and heavy, light

commercial vehicle, small commercial vehicle and buses.

As the project title CUSTOMER SATISFACTION SURVEY Suggests that the project

report is all about the technical and the commercial aspect of the company. While doing

survey I realize that the things learnt from the books are quite different from the actual

practice in field.

The body of the project report takes a micro level approach, using each step of the

marketing research process. The main source of analyzing the data is through

questionnaires. A complete analysis has been done in research methodology part to find

the advantages and disadvantages of the company.

A complete Analysis of variance has been done to find the kind of satisfaction Tata

Motors Service Stations provides to their Customers.

The best part of this project report is the analysis and interpretation of the various

services provided by Service Station. This part directly shows whether the customers are

satisfied with the products and services of Tata Motors and criticizes the ill part of the

company.

At the last part I wrap up the project with suggestion and recommendations to enhance

the future growth and prospects of the company.

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CHAPTER 2

RESEARCH METHODOLOGY

Objective of the study

2.1 Primary objectives

To ascertain the level of satisfaction among the Tata Motors vehicle owners

(commercial vehicles) with respect to services provided by authorized service

stations.

To evaluate critically market acceptance of Tata Motors (CVBU) products.

To analyze the price sensitivity in various spares.

To find out the customers perception on different attributes through

questionnaires.

Secondary objectives

Consumer perception towards the products of Tata Motors(CVBU)

Advice to change some attributes of Service Station.

To understand the potential market.

What are the ways to retain the existing customers of commercial vehicles to

service station

2.2 SCOPE OF THE STUDY

As the title of the project CUSTOMER SATISFACTION SURVEY suggests that the

project is divided into two major parts:

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1) Technical

2) Commercial

The scope of the technical part is limited to the company premises only. Various

raw materials are imported from our own Domestic and foreign market also. The research

and development department of TATA MOTORS is constantly attempting to lower the

cost of some of the models.

The scope of the commercial part is very wide. The geographical area covered is

JAMSHEDPUR. The time period assigned to me was complete two months. The

authorized service station covered for the survey was MITHILA MOTORS PVT. LTD.

Basically there was a questionnaire to which the respondent has to respond.

2.3 Research Design

All research approaches can be classified into three general categories:

1) Exploratory Research

2) Descriptive Research

3) Casual Research

Since data collection method is from surveys, hence Descriptive type of research is used

for analysis of the data.

The study was descriptive in nature because it depicts characteristics or functions of the

market. It describes the number, distribution and socio-economic characteristics of

potential customers for the product.

Type and collection of data used

Basically there are two types of data which are used in marketing research process.

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1. Primary Data: the methods of collecting primary data are as follows,

A: Observation

: Interview

C: Telephonic Interview

D: Questionnaires

Interview: Interview is one of the chief means of collecting data in research process.

Interview may be defined as a systematic conversion initiated for a specific purpose and

focus on certain planned content areas. It is not a simple two way conversion between an

investigator and an informant.

Surveys: There are three main types of surveys, depending upon the method of data

gathering used: personal interview surveys, telephone surveys and mail surveys.

Advantages of survey: Following are the main surveys:

1. Wider Distribution

2. Less Distribution Bias

3. Thoughtful Reply

The primary data under processing is collected from both direct filling the questionnaires

and through telephone interviews also.

2. SECONDARY DATA: The data once collected by one person become the secondary

data if used by another person.

Sources Of secondary data: The various sources of secondary data are as follows:

1. Bibliographies.

2. Directories.

3. Newspaper.

4. Journals.

5. Websites

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6. Television

The secondary data like information of existing customers, information about companys

profile product line and sales figure has been taken from companys website.

2.4 Sampling

A sample is a part of the population. The sample should be representative of the

population and the information obtained must be reliable. In any survey where reliability

is desired , the error and variance have to be controlled , measured , and interpreted.

The sample size is of one hundred for existing customers.

The type of population selected is the TATA MOTORS service station named MITHILA

MOTORS PVT. LTD at JAMSHEDPUR.

Sampling Technique: Non probability judgment sampling

Statistical tools used

The list of statistical tools used while analyzing the data is as follows:

TABLES

BAR CHARTS

PIE CHARTS

OPERATING ECONOMY

TEST OF HYPOTHESIS

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2.5 Limitations of the study

Every study conducted may have certain shortcomings and unfortunately ours is also a

similar case. A few errors have crept in despite our best effort to avoid them but it is

expected that still our study and findings are very much relevant.

An error may have been due to the samples taken not conforming to the actual

population: this is because the sample is a convenience sample.

Personal bias or error of the interviewer might also have crept in: some cases,

while interpreting the respondents.

Certain questions which are not properly responded by the responders.

Some of the respondents have not responded totally.

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CHAPTER 3

CRITICAL REVIEW OF LITERATURE

Presenting a tempered vision of the technological future, Tata Motors MD

As increasing liberalisation norms transform the Indian economy, the transportation

sector is set for explosive growth. The personal and public transport segments are still in

an early stage of growth, but you don't need a crystal ball to see the sweeping changes

waiting to happen.

The government's massive infrastructure development programme is connecting

thousands of towns and villages all over the country. The building of roads where dirt

tracks existed before is spurring communication and commerce. Suddenly, cars, buses

and scooters are plying where only bullock carts used to. A whole new world of

opportunities is opening up for our rural communities.

Rapid growth will inevitably bring problems in its wake. This doesn't mean we should

curtail growth; instead, if we have to bring about an improvement in the quality of life of

our people, we must remove constraints. The challenge will be to ensure there is greater

discipline in the development process, more certainty.

Strategies for tomorrow

Looking ahead, there are strategic issues that Tata Motors need to address. One such

discussion involves moving from low-cost production to high-quality products. Frankly,

in today's environment, I don't see a conflict between the two. I would argue that it's not

an either/or situation at all, for I can be a low-cost producer and yet steal a march over

others through innovation.

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In fact that's how the strategy is unfolding for us. The equation that a good vehicle can be

made at a lower cost is emerging quite clearly with advances in technology and

development of appropriate business models and product packages. A case in point is

Ace, our small truck, launched in 2005. As a four-wheeler, it is positioned against the big

three-wheelers, and gives customers what they want, and at a competitive price, while

meeting safety, emission and comfort norms. The Ace is doing pretty well.

Similarly with the Tata Motors low-priced car. It will have all the features essential for

comfort and safety. By applying effective technologies and innovative solutions, we will

try and ensure that it remains a low-priced vehicle, without compromising on its quality.

As economies liberalize, competition will only stiffen, be it in India or elsewhere.

Compared to us, there is a gap in quality and performance that works in favour of foreign

brands; on the other hand, there is a gap in cost that is not to their advantage.

What foreign companies would like to do is to retain that positive gap in performance and

quality, and reduce the gap in cost. Companies like ours, which have an advantage in cost

but an adverse gap in quality and performance, will aim to close the gap in quality and

retain the gap in cost.

These will be the two key strategies for the future. I feel that companies like Tata Motors,

which have the cost factor on their side, will have an advantage. Time alone will tell if I

am right!

Steps ahead

But technology and cost competitiveness are only one part of the story. It is the principles

with which the Tata Group does business that will be the real differentiator. Our

commitment to the communities, the countries we operate in, sets us apart from other

multinationals.

As the largest automobile company in India, Tata Motors has to keep at least half a step

ahead in an evolving market in order to maintain its leadership position. I am confident

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our company will adapt to expanding opportunities in the market even as they emerge,

and maintain its leadership.

CHAPTER 4

COMPANY PROFILE

COMPANYS STATEMENT

VISION STATEMENT

To be a world class corporate constantly furthering the interests of all its stakeholders.

MISSION STATEMENT

SHARE HOLDERS:

To consistently create share holder value by generating return in excess of weighted average cost of capital [WACC] during the upturn and at least equal to weighted average cost of capital [WACC] during the downturn of the business cycle.

CUSTOMERS:

To strengthen the TATA brand and create lasting relationship with the customers by working closely with business partner, to provide superior for money over the life cycle.

EMPLOYEES:

To create a seamless organization that incubates and promotes innovation, excellence and the TATA core values

COMMUNITY:

To proactively participate in reshaping countrys economic growth. To take a holistic approach towards environmental protection.

TATA MOTORS Limited is India's largest automobile company, with revenues of Rs.20,

483 crores (USD 4.7 billion) in 2004-05. It is the leader by far in commercial vehicles in

each segment, and the second largest in the passenger vehicles market with winning

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products in the compact, midsize car and utility vehicle segments. The company is the

world's fifth largest medium and heavy commercial vehicle manufacturer.

The company's 22,000 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 3 million TATA vehicles ply on Indian roads, since the first rolled

out in 1954. The company's manufacturing base is spread across Jamshedpur, Pune and

Lucknow, supported by a nation-wide dealership; sales, services and spare parts network

comprising about 1,200 touch points.

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 a global automotive

company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's

second largest truck maker. The rechristhinied TATA Daewoo Commercial Vehicles

Company has already begun to launch new products. In 2005, TATA MOTORS acquired

a 21% stake in Hispano CARROCERA, a reputed Spanish bus and coach manufacturer,

with an option to acquire the remaining stake as well. Hispanos presence is being

expanded in other markets.

These acquisitions will further extend TATA MOTORS' global 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, Australia,

South East Asia and South

Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia

and Senegal.

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.

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With 1,400 engineers and scientists, the company's Engineering Research Center,

established in 1966, has enabled pioneering technologies and products.

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.

The pace of new product development has quickened. In 2005, TATA MOTORS created

a new segment by launching the TATA Ace, India's first indigenously developed mini-

truck. The years to come will see the introduction of several other innovative vehicles, all

rooted in emerging customer needs. Besides product development, R&D is also focusing

on environment-friendly technologies in emissions and alternative fuels.

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.

True to the tradition of the TATA Group, TATA MOTORS is committed in letter and

spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global

Compact, and is engaged in community and social initiatives on human rights, labor and

environment standards in compliance with the principles of the Global Compact.

Simultaneously, it also plays an active role in community development, serving rural

communities adjacent to its manufacturing locations.

With the foundation of its rich heritage, TATA MOTORS today is etching a refulgent

future.

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18

MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

Domestic Sales

TATA MOTORS have shown a continuous growth in commercial vehicle segment.

There is a growth of 34% in MHCV and 46% in LCV in 2006-07.

A total growth of 3% growth is achieved in total CV.

COMPETETIORS:

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The above companies are the leading manufacturers in heavy & medium commercial

vehicles which are operating in JAMSHEDPUR. In Jamshedpur TATA is the leading

vehicle and has a greater market share.

SWOT ANALYSIS FOR TATA MOTORS

STRENTHS

EICHEREICHER

SWARAJSWARAJ

MAHINDRA & MAHINDRA

MAHINDRA & MAHINDRA

Ashok LeylandAshok

Leyland

LL

20

Tata Motors has major share in HMCV segment (60%) and second largest in passenger vehicle market.

The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.

Tata Motors is the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004).

The company has made major mergers and acquisitions in the recent past viz. Ford and Land Rover (U.K.), Daewoo commercial vehicles company (Korea).

The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia.

It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal.

WEAKNESSES There is a need for more service stations for its authorized dealers. The recent mergers and acquisitions were too expensive. Maintaining the good quality product at a comparatively low cost is becoming

tough for the company. OPPORTUNITIES

There has been a continuous increase in the exports of both commercial and passenger vehicles of Tata Motors.

Government has provided the companies with SEZs and EEZs with flexible policies and also providing concessions for manufacturing plants meant for export.

Though the urban market has been penetrated, the rural market is still open for penetration.

The average annual income of people in India has increased which ensures the demand for both passenger and commercial vehicles.

THREAT The biggest threat for the company is the increasing prices of the raw material,

most important among them is steel. The interest rate on vehicle loans has been increased by the government several

times during the past few years which has lead to fall in the demand. Since the government has allowed 100% FDI in automobile sector lot of foreign

players have entered into the Indian automobile sector e.g. Hyundai, Toyota. There is also a rise in the number of domestic competitors in the recent years.

21

4.1 INDUSTRY PROFILE:

Automobile put the horses on rest and changed the way of living for mankind, is a

wheeled passenger vehicle that carries its own motor. The term 'automobile' is derived

from Greek and Latin words. 'Auto' in Greek means 'self' and 'mobiles' in Latin means

'movable.' The phrase refers the fact that it 'moves by itself.' Automobile used to be also

addressed as 'motorwagen' or 'horseless carriage'.

The first automobile rolled in India in 1897 in Bombay (now Mumbai). Soon the number

of cars increased on the roads and it became the status symbol until MARUTI UDYOG

entered the market in 1980s with cars at economical price and high fuel efficiency.

Maruti800 had ousted the outdated model of HINDUSTAN MOTORS best seller brand

Ambassador. Today, the Indian automobile industry has matured greatly. It has become

one of the largest industries in India, witnessing impressive growth during the last two

decades. Worldwide, the industry is getting recognition and vehicles as well as

components are making good progress in the export market. . In India there are 100

people per vehicle, while this figure is 82 in China. It is expected that Indian automobile

industry will achieve mass motorization status by 2014.

INDIAN AUTOMOBILES CURRENT SCENARIO

Largest two-wheeler manufacturer in the world.

2nd largest tractor manufacturer in the world.

5th largest commercial vehicle manufacturer in the world.

#1 global motorcycle manufacturer is in India.

4th largest car market in Asia - crossed the 1 million mark.

PRODUCTION SCENARIO

The bar diagram given below compares the figures between 1998-99 and 2004-05 (Apr-

Dec).

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1. Among the two-wheeler segment, motorcycles has the major share in the market. Hero

Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in

scooter and TVS makes 82% of the mopeds in the country.

2 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of

the market share. Among the passenger transport, Bajaj is the leader by making 68% of

the passenger vehicles.

3 Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in

passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles

Mahindra holds 42% share.

4 In commercial vehicle, Tata Motors dominates the market with more than 60% share.

Tata Motors is also the world's fifth largest medium & heavy commercial vehicle

manufacturer.

India has witnessed a sudden and sharp twist to its earlier staggering political and

business scenario. With the influx of F.D.I, the economy has seen the sensex soaring

thanks to the young working population from the various strata of the society, who are

sincerely contributing to the G.D.P of the country. The young population has become

extremely mobile in terms of conducting business and serving the society. The sales of

commercial and passenger vehicles has thus witnessed a sudden increased demand which

is expected to grow in leaps and bounds in the following months to come.

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The average working population has increased, and with the B.P.O sector tagged to

provide employment to thousands there has also been an increase in the passenger car

market.

TRENDS IN THE AUTOMOBILE SECTOR

Production of automobiles

4.8 5.36.3

7.28.5

02468

10

2000-01 2001-02 2002-03 2003-04 2004-05

PR

OD

UC

TIO

N

IN

MIL

LIO

N

totalCAGR15.4%

24

India's automobile sector - Trends

0

2

4

6

8

10

12

Nu

mb

er in

mill

ion

Automobile production 5.32 6.28 7.24 8.46 9.74

Automobile domestic sales 5.23 5.94 6.91 7.9 8.91

Automobile exports 0.18 0.31 0.48 0.63 0.81

2001-02 2002-03 2003-04 2004-05 2005-06

GROWTH PATTERN COMPARISON FOR 6 YEARS

Liberalization and Globalization has contributed largely to the sudden entry of new

players in various segments of the automobile industry. With the dawn of the new

millennium and the introduction of new vehicles with extended features, better quality

product and after sales services in the commercial and passenger vehicles, the market had

seen a tremendous rise in the demand for new vehicles. The above graphs show a sudden

rise in the production of automobiles. It shows a rise of 77% in 5 years from the year

2000 to 2005. Last fiscal saw the production touching 9.74 million units from the

automobile sector. The trend is predicted to prevail in the coming 5 years and the

production is expected to grow by another 15 % in the next few years to come.

SEGMENT WISE MARKET SHARE

Growth Rates of different segments

23.5

11.314.3 14 14.2

05

10152025

CommercialVehicles

PassengerVehicles

Twowheelers

Threewheelers

totalAutomobiles

Segments

4 y

ea

r C

AG

R

The Automobile Industry has not experienced much change in its structure over the last 6

years because the two-wheelers continue to form the major share of domestic sales in the

Indian market whereas the passenger vehicles lead the export market with a 57.4% share.

The growth of the 2 wheeler and the sudden demand for the 4 wheeler cars, the passenger

vehicle market is being probed by the danger of losing its market share. It is witnessing

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competition from the 2 wheeler manufacturers who are now providing vehicles to the

customers with minimum down payment options and easy repayment schemes.

Private financers have mushroomed into the cities and are fundamental in the increased

sales of the new vehicles. New customers are constantly being lured by the best quality

automobiles from various parts of the globe and from the local competitors.

The current market share but belongs to the commercial vehicles in which TATA motors

holds a major market share.

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SWOT ANALYSIS FOR AUTOMOBILE INDUSTRY

STRENGTHS

Indian automobile industry sales grew to 11.12 billion units in 2006-07,

exhibiting an impressive CAGR of 15.5% during the past 5 years.

India is the second largest two-wheeler manufacturer in the world.

The Indian automobile industry has reached a size of US$ 15 billion in 200607,

growing at a CAGR of nearly 29% in the last four years

Fifth largest commercial vehicle manufacturer in the world.

Acquisitions made overseas are helping Indian automobile companies get access

to new set of skills, technology and customers e.g. recent acquisition of Jaguar

and Land Rover brands (U.K.), Daewoo Commercial Vehicle Company (Korea).

WEAKNESSES

The automobiles manufactured in India are not of the European standards and

their import duty is sometimes more than 100%.

The Indian automobile sector has been flooded by both foreign and domestic

companies.

The burden of direct and indirect taxes is higher in India as compared to in other

countries.

OPPORTUNITIES

Penetration level of commercial vehicles is less, especially in Rural area.

Rapid Urbanization and Increase in income level.

The Indian automobile sector has shown a rise of 78% from 2000-2008 and the

production is expected to grow at 15% in the years to come.

THREATS

Increased Automobile-density gap between Rural and Urban India.

With 100% FDI allowed in India more and more foreign companies are opening

there manufacturing plants in India and hence building more competitors.

In order to emerge as a manufacturing hub, India would face competition from

other low cost countries such as China, Thailand, Brazil

27

CHAPTER-5DATA

PRIMARY DATA:

The primary data was collected by asking the consumers who come to the authorized

service stations for the servicing of their commercial vehicles and also the new

customers of the commercial vehicles to fill up the questionnaires by me. It is a very

important part of the project as it is only through the properly filled up questionnaires

that I can reach to any conclusion from the data which I got from the questionnaires.

SECONDARY DATA:

Secondary data are the information which is attained indirectly. They are the data

collected by someone else and which has already passed through statistical process.

There exist two sources of secondary data.

Internal sources- they can be classified into four broad categories

Accounting Records Generate a great deal of information. It gives a detailed analysis of sales by

product, customer, industry, geographical area.

Sales force reports- this source provide a great deal of information

Miscellaneous reports- any studies done on marketing problem of the company,

special audits also provide a good deal of information

Internal experts- executives working as product manager, marketing research

manager, advertising personnel also serve to be a good source of information.

Internal sources

External sources

28

External sources-external secondary data do not originate in the firm and are obtained

from outside source.

Example-govt publications, non-govt publications, newspapers, magazines, journals,

websites etc.

29

CHAPTER-6FINDINGS AND ANALYSIS

SAMPLE SIZE = 100 CUSTOMERS

The questions were asked to 100 customers about customers satisfaction that have purchased Tata Motors heavy & light commercial vehicles. I have selected several models which are LPT 2515 TC, 2516 TC, SE/SK/1613, ACE, 407 EX, 207 DI EX, 3516 TC, 1109 EX, 709 LP.

The datas collected were of the month of May and June from MITHILA MOTORS pvt. Ltd. (DEALER) in JAMSHEDPUR.

Q1. When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS?

INTERPRETATION Most of the customers have come for service in TATA DEALER SERVICE STATION in the month of april i.e. 32% last time and the least the customers came for service is in the year 2006 i.e. only 18%. According to the customer survey many customers told that they have to come for service again and again because of some problem in the vehicle. Only 18% of the total customers said that they have come to a dealer service after a very long time. Those 18% customers are quite satisfied with the service.

PERIODNO. OF CUSTOMERS

MARCH (07) 25APRIL (07) 32JAN-FEB (07) 25YEAR 2006 18

30

APRIL (07)32%

JAN-FEB(07)25%

MARCH (07)25%

YEAR 200618%

MARCH (07) APRIL (07) JAN-FEB(07) YEAR 2006

Q2) Where did you take it for service? (Name of the dealer)

INTERPRETATION

80% of the customers come for services in MITHILA MOTORS (DEALER).Only 20% prefer others. According to the survey all the people are very well known to the people in mithila and they trust them.80% customers regularly come for service in mithila motors.

Q3) How was the overall experience?

DEALER No. OF CUSTOMERSMITHILA MOTORS

80

OTHERS 20

OVERALL EXPERIENCE

No. OF CUSTOMERS

SATISFIED 60

DISSATISFIED 40

31

% O F CU S TO M E R S

M IT H IL AM O T O R S

80%

O T H ER S20%

M ITH ILA M O TO RSO TH E R S

% OF CUSTOMERS

SATISFIED60%

DISSATISFIED40%

INTERPRETATION

According to the survey 60% customers are overall satisfied and 40% are dissatisfied. According to the survey:

Most customers are dissatisfied with the unavailability of spare parts in Mithila motors.

Some are dissatisfied with the product quality. Some are unhappy with the mechanics working in Mithila motors. Most of the customers are very much happy with the culture of Mithila motors

and also the way the staffs attend the customers. Some are unhappy with the space available for servicing at dealer point. Some are dissatisfied with the delay in service.

Q4) NO. of TATA commercial vehicles used in the past 5 years?

No. OF VEHICLES No.OF CUSTOMERS 5 vehicles 22> 10 vehicles 35

32

% OF CUSTOMERS

5 vehicles22%

> 10 vehicles

35%

5 vehicles> 10 vehicles

INTERPRETATION

According to the survey customers who have used more than 10 tata commercial vehicles are 35% of the sample customers. Customers who have more than 5 Tata CV are 22% and 43% of the customers have less than 5 commercial vehicles.

This shows that many customers are satisfied and happy with TATA COMMERCIAL VEHICLES and of their services.

The FLEET OPERATORS of TATA COMMERCIAL VEHICLES who operate in whole of Jharkhand and have more than 10 TATA CV is:

1 UTILITY TRANSPORT

2 FRONTLINE ASSOCIATES

3 B.S. ROADWAYS

4 COMMERCIAL CARRIERS

5 TARAPORAN COMPANY

6 RAHANIA TRAILORS

7 MALLIK TRANSPORT

8 HAULERS INDIA

9 TAURIAN FINANCE STEEL CO.

10 NARESH KUMAR AND CO.

11 C.C.I.

12 SEIZER METALLICS

Q5) Type of work required in your vehicle.

33

3036

14

20

0

10

20

30

40

No. of customers

PAID SERVICE

FREE SERVICE

PAID REPAIR

WARRANTY

No. ofcustomers

30 36 14 20

PAID SERVI

FREE SERVI

PAID REPAI

WARRANTY

Most of the customers i.e.36% come to MITHILA MOTORS for FREE SERVICE and

only 14 out of the 100 customers come for the paid repair. The reason behind this is that

according to the survey many customers told me that spare parts available in any dealer is

very costly. Therefore sometimes they buy parts from local shops at lower cost.30% of

the sample customers come for PAID SERVICE and 20% customers come for repairing

if its vehicle is in warranty period.

Q6) Did you have to make an advance booking?

INTERPRETATION

66% Customers have to make an advance booking for servicing because in MITHILA MOTORS because of the rush of customers time consumption is more. This results in a loss of the customers. Therefore they have to do advance booking. Only 34% of the samples customers do not do advance booking. These customers mainly come for paid repairing of the vehicle and not for free servicing. Many customers have to wait in the queue because of the rush.

Type of service No. of customers

PAID SERVICE 30FREE SERVICE 36PAID REPAIR 14

WARRANTY 20

34

NO.OF CUSTOMERS

YES66%

NO34%

YESNO

Q. 7) If your vehicle was under warranty was it immediately accepted or it took time for a decision to be taken?

No. of customers

NO35%

YES65%

YESNO

INTERPRETATION

According to the survey 65% of the customers said that their vehicle under warranty was accepted.35% of the customers said that although their vehicle was under warranty then also it was not immediately accepted.

Customers view

1. Some customer said that there was unavailability of spare parts in MITHILA MOTORS therefore it was not accepted.

Warranty Immediately Accepted No. of customers

YES 65NO 35

35

2. In some dealer workshops (mithila motors chaibasa), they do not have the authority to accept warranty.

3. Some times parts are not available so the dealer have to bring from

outside. It is time consuming and also loss for the customer.

Dealers view

1. According to the dealer some parts of vehicle are not under warranty so it is not accepted. 2. Also some customers do not bring their registration book so it is not possible for the dealer to repair the vehicle under warranty because for some vehicle warranty is accepted till one year from the purchase date.

INTERPRETATION

94% Customers told that they need not have to pay any deposit but also 6% customers told that they once gave the deposit before their vehicle was repaired. The reason being sometimes spare parts were not available in MITHILA MOTORS therefore the customers had to buy from outside from their own pocket.

Q9) When the vehicle arrived at dealership/ TASS (TELCO AUTHORISED SERVICE STATION), how long did it take for the vehicle to be taken into the workshop and open job card?

OPTIONS NO.OF CUSTOMERSIMMEDIATELY 75NOT IMMEDIATELY 25

36

NO.OF CUSTOMERS

75%

25%

IMMEDIATELY NOT IMMEDIATELY

INTERPRETATION

According to the survey 75% customers said that when their vehicle arrive at the authorized workshop their vehicle was immediately taken inside and the job card was immediately opened.25% customers also said that that it took time for the job card to be opened.

According to the customers there is a queue formed sometimes. The customers also complained that sometimes the dealer do not accept the warranty period of the parts which is to be repaired therefore the vehicle is not being taken inside.

The dealer also said me that sometimes the customer do not bring the registration book therefore it is not possible for them to take the vehicle inside the workshop.

Q 10) Are you satisfied with the performance and product quality of different models?

62

38

60

40

86

14

100

70

30

020406080

100

1613 LPK

LPT 2515 TC

LPK 2516 TC

407 EX

ACE

SATISFIED DISSATISFIED

37

% Of

CUSTOMERS

INTERPRETATION

MODEL 1613 LPK 62% of the customers are satisfied and only 38% customers are dissatisfied.Why dissatisfiedAccording to the survey some customers told that fuse system is not good. Some said that diesel in tank comes to chamber which in diesel loss and mobil loss.

MODEL 2515 TC - 60% customers are satisfied and 40 % are dissatisfied with this model.Why dissatisfiedA customer name JAI PRAKASH SINGH said that the vehicle has poor pick up.he also had a problem of gear trouble but the action was not taken.Another customer said that he came to MITHILA MOTORS 4 times for steering problem again and again.

MODEL 2516 TC 86% Customers are satisfied and only 14% are dissatisfied with is model.Why dissatisfiedFew customers have the problem of diesel leakage.

MODEL 407 EX All the sample customers to which I have contacted are satisfied with the performance and product quality of this model.

MODEL ACE 70% Customers are satisfied and only 30% are dissatisfied. Why dissatisfiedAccording to the survey some customers said that there is no sudden pick up in the vehicle. Some said that tyre is very small. Some said that body and tyre guard is not there. Noisy steering also creates problem.A customer named M.D.SALIM said that while purchasing vehicle it comes without good paint so he had again painted from his own pocket.

Q11) How frequently the maintenance cost occur?

No. of times(monthly) No. of Respondents

No Maintenance Cost 18 3 times 9

38

Frequency Of Maintainance Cost(monthly)

18%

73%

9%

No Maintainance Cost 3 times

INTERPRETATION

According to the survey I found that only 9% customers have to incur maintenance cost more than 3 times a month.73% of customers have to incur less than 3 times a month and also 18% customers reported that they didnt incur any expense on their vehicle since they purchased. These customers have recently bought their vehicle. Therefore it means the maintenance cost of TATA commercial vehicles is very less.

MODEL WISE MAINTAINANCE COST

Q12) Did you interact with the service advisor about your problem?

OPTIONS NO. OF RESPONDENTS

YES 74NO 26

39

5000

3500

7500

2000 1500

010002000300040005000600070008000

LPT 2515TC

LPK 2516TC

1613 LPT 407 EX ACE

MAINTAINANCE COST(MONTHLY IN RS)

INTERACTION WITH SERVICE ADVISOR

74%

26%

YESNO

INTERPRETATION

26% customers did not interact with the service advisor and 74% customers took suggestion of them.

Understanding the problem

INTERPRETATION

According to the survey 24% customers who have no problem with the vehicle did not interact with the service advisor.8% customer said that the service advisor did not understood their problem and had taken their problem casually.

Q13) Did the workshop give you a proper estimate of time and cost?

40

DID HE UNDERSTAND THE PROBLEM

68%8%

24%

YES NO NO PROBLEM

50 50

05

101520253035404550

YES NO

WAS A ROAD TEST TAKEN

PROPER ESTIMATE OF TIME & COST

INTERPRETATION

According to the survey 60% customers said that the dealer gives them proper estimate of

time and cost.40% said that they do not give the estimate. The customers said that

sometimes spare parts were not available so they

took time to arrange the spare parts. Dealers said

that first they have to see exactly what is the

problem in the vehicle and then they do the repair.

Q14) Was it delivered on time?

OPTIONS NO. OF RESPONDENTS

YES 60

NO 40

OPTIONS NO. OF RESPONDENTS

YES 76

NO 24

41

YES 60%

NO40% YES

NO

T

76

24

01020304050607080

YES NO

NO. OF RESPONDENTS

TIMELY DELIVERY

% OF CUSTOMERS

INTERPRETATION

76% Customers said that their vehicle was delivered on time. Only 24% said it was not

delivered on time. According to the survey one customer said that the dealer once

delayed for 2-3 days in delivering the vehicle because then parts were not available.

Sometimes que is formed in the workshop. The main reason is because of space problem

in MITHILA MOTORS.

Q15) How frequently you change the tyre?

INTERPRETATION

42

TYRE REPLACEMENT(MONTHS)

3

65

8 8

012345678

1613 LPTLPT 2515 TCLPK 2516 TC407 EXACE

MONTHS

MODEL

According to the survey customers of MODEL 1613 LPT said that they change the vehicles tyre once in 3 months because it is heavy commercial vehicle and holds a capacity of around 22 tones. Customer of MODEL LPT 2515 TC said that the average life of tyre is around 6 months. Customer of MODEL LPK 2516 TC said that the average life of tyre is 5 months.Customer of MODEL 407 EX said that the average life of tyre is 8 months.Thus the conclusion is that the LCV of TATA has more average tyre life than H & MCV.

Q16) What is the KMPL of the vehicle?

INTERPRETATION

According to the survey I found that MODEL 1613 LPT has a mileage of 3 kmpl.MODEL LPT 2515 TC - 3.5 KMPLMODEL LPK 2516 TC 2.5 KMPLMODEL 407 EX 10 KMPL

43

AVERAGE MILEAGE

3 3.5 2.5

10

17

02468

1012141618

1613LPT

LPT2515TC

LPK2516TC

407EX

ACE

AVG.MILEAGE(KMPL)

MODEL ACE 17 KMPL

17) Did you go back to the workshop for the same problem shortly afterwards?

INTERPRETATION

According to the survey 42% customers did not come back for the same problem shortly afterwards.Of these some do not have any problem with their vehicle.58% of the customers said that they went to the workshop for the same problem shortly afterwards.

Some came because of pump problem again and again.

One customer bought some parts from outside because the parts available in MITHILA MOTORS was expensive so he has to come to the workshop again.

One customer has a complain that his vehicle was under warranty period then also his complain was not being listened by any service station so he had to come again.

Q.18) How do you find the competence of mechanic in the workshop? Do they know their job well?

COMPETENCE OF MECHANIC

NO. OF RESPONDENTS

SATISFIED 79

DISSATISFIED 21

44

CAME BACK FOR THE SAME PROBLEM SHORTLY AFTERWARDS

YES58%

NO42% YES

NO

NO. OF RESPONDENTS

79

210

102030405060708090

SATISFIED DISSATISFIED

SATISFIED DISSATISFIED

Q19) Will you recommend others for service in this workshop?

INTERPRETATION

According to the survey 82% customers are happy with the staff present in MITHILA

MOTORS but 18% customers recommended that some others should be brought for

better and quick service.

Some customers recommended that the mechanic should be increased as there is always a

rush in the workshop. The manager should guide the mechanic to do proper work and

recheck the vehicle after the servicing is done. One supervisor should also be kept to

guide the mechanic.

Q20.) Are you happy with the cleanliness and workshop infrastructure?

45

LEVEL OF SATISFACTION

% OF RESPONDENTS

YES18%

NO82%

YES

NO

CLEANLINESS & WORKSHOP INFRASTRUCTURE

YES86%

NO14%

YES

NO

INTERPRETATION

According to the survey 86% customers said that they are happy with the cleanliness and

workshop infrastructure but 14%customers also said that they should increase the space

of workshop. Most customers complained that they have to park their vehicle outside the

gate for 2-3 days as there is rush in MITHILA MOTORS

21) LIKINGS OF THE CUSTOMER ABOUT TATA COMMERCIAL VEHICLE

INTERPRETATION

82% of the customers like the service of TATA commercial vehicles than others as there are more

no. of service station of TATA in every district.

99% customers like the brand of TATA as it is a trusted company.

Only 75% customers like the product quality of TATA C.V.

46

% OF RESPONDENTS

82

75

99

SERVICING PRODUCT QUALITY BRAND

Q22.) CUSTOMERS ARE COMFORTABLE WITH THE SERVICE OF.

DEALER % OF PEOPLE

MITHILA DEALERSHIP 60TASS(Tata Authorised Service Station) 15Other dealership & serviceability 25

INTERPRETATION

According to my survey customers are most comfortable with the service of MITHILA

MOTORS(DEALER).The spare parts available in MITHILA are sufficient and also the

tools the mechanic use there are special tools provided by TATA MOTORS.Mainly the

bonding and trust between the staffs and the customers in MITHILA is very good.Only

15% customers go to TASS as there is not so much staff present there.

Q.23 SPARE PARTS AVAILABILITY

47

% OF PEOPLE

60%15%

25%

MITHILA DEALERSHIP TASS(Tata Authorised Service Station)

Other dealership & serviceability

% OF CUSTOMERS

63%

37%

SATISFIED DISSATISFIED

INTERPRETATION

According to the survey 63% customers were satisfied with the spare parts available in

MITHILA MOTORS.37% customers are also dissatisfied. Some customers said that even

the common regular use parts are not available. Therefore sometimes they have to buy it

from outside from their own pocket.

CHAPTER-7RECOMMENDATIONS

Spare parts should be available in the workshop as & when required by the

customers.

Workplace should be increased for repairing as there is a queue formed in the

workshop.

Washing space should be increased.

At least two supervisors and service engineer should be kept in the workshop to

see whether the mechanics are properly doing the work and they need to guide

them time to time.

48

At least 4 mechanics professional as well as non professional, are being given

training in a year rather than two.

Proper estimate of the cost and the time taken to repair should be given before

only.

Some customers were not knowing about the AMC (Annual maintenance cost)

.The dealer should suggest it before only to all the customers.

During the training I even suggested the customers to please interact with the

service advisor about their problems.

I also suggested to mithila motors that there should be separate service station for

small & heavy vehicles.

Mechanics should be increased as there is much waiting time for the customers.

They should also keep more professional & trained mechanics for much faster &

smart work.

One time work should not be done twice shortly afterwards by the mechanics.

Mobile servicing should be spread over larger areas.

Road test should be taken for every vehicle after the repairing is finished.

One service advisor should always be there when the customer arrives in the front

office to guide them.

FACILITIES

49

They should provide a toll free number so that customers can call anytime to

check the status of work done.

They can make a good restaurant at the service station to make whole exercise

enjoyable.

There should be separate washroom for customer and staff.

Mithila motors should provide net facility to customers. This would create a

service differentiation.

They must follow up with the customer because that gives the impression that

TATA is really caring for them.

CONCLUSION

Customer Satisfaction plays pivotal role in any companys improvement and is the

ultimate goal of any organization. Its great learning experience to work with TATA

MOTORS. I would like to conclude that a heavy, medium & small commercial vehicle

has a great market potential.

During the project I learned about H&MCV and SCV products of TATA

MOTORS & the customers view about the product performance. I also came to know

different views of the customers about the services provided by the service work stations.

I also suggested some of my views to the customers and also to the MITHILA

MOTORS (DEALER) how they can make their service much better. I understood the

50

customers problems, found the solutions with the service advisor and explained to them.

From the survey I found that some customers are dissatisfied with the product quality and

some are dissatisfied with the services provided by the dealer.

As the study concentrates to find the satisfaction level of customers of TATA commercial

vehicle and from the findings it can be concluded that almost every area needs

improvement whether it is product quality, services or spares provided by the dealer

workshop. If these areas are improved systematically there is no doubt that customer will

receive more satisfaction and the future of this company will be glorious in the field of

automobile. At last I would say that I enjoyed every moment working with Tata Motors.

CHAPTER-8

BIBLIOGRAPHY

Marketing Management - Philip Kotler.

Business policy and Strategic Management.

International Marketing- Lascu.

India Today- magazine.

4Ps of Business and Marketing.

REFERENCES

www.tatamotors.com.

51

http://www.india-today.com/btoday/20010930/cover2.html

www.mahindra.com.

www.ashokleyland.com

www.thehindubusinessline.com/2002/03/08/stories/

http://www.automobileindia.com/india-automotive/automotive-trends.html

http://www.tata.com/tata_sons/articles/20060818_rural_india.html

http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

CHAPTER-9ANNEXURES

QUESTIONNAIRES

CUSTOMER FEEDBACK FORM

Q1 When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS?

Q2 Where did you take it for service? (Name of the dealer)

Q3. How was the overall experience?

Q4. How many TATA commercial vehicle have you used in the past 5 years?

Q5. What type of work was required in your vehicle?(FC/ PS/PR/ WR)

Q6. Did you have to make an advance booking?

52

Q7. If your vehicle was under warranty was it immediately accepted or it took time for a decision to be taken?

Q8. Were you asked to pay a deposit or charged for lubricants?

Q9. When the vehicle arrived at the dealership/ TASS, how long did it take for the vehicle to be taken into the workshop and open job card?

Q10. How satisfied are you with the performance quality of Tata novus? Very satisfied.....................................................Quite satisfied....................................................Very dissatisfied................................................

Q11. How frequently the maintenance costs occur?

Q12. Did you interact with service advisor about your problem? Did he understand the problems? Was a road test taken?

Q13. Did the workshop give you a proper estimate of time and cost?

Q14. Was it delivered on time?

Q15. How frequently you change the tyre?

Q16. What is the mileage of the vehicle?

Q17. Did you go back to the workshop for the same problem shortly afterwards?

Q18. How do you find the competence of mechanic in the workshop? Do they know their jobs well?

Q19. Will you recommend others for service in this workshop?

Q20. Are you happy with the cleanliness and workshop infrastructure?

Q21. If you could make one suggestion that will help the dealer/ TASS improve their service to customers like you, what would be it?

53

GRAPHS AND CHARTS

INDIAS DEMOGRAPHIC DIVIDEND: A REASON FOR GROWTH

54

Av e rage M e dian Age (Y e ars)

42.64 42.1638.99 38.85

36.2732.26

27.81 27.6024.93 24.66 23.98

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Japan Germ any UK France US A China B raz il W orld M ex ico India S outhA frica

Ye ar

A verage Median A ge (Y ears )Sou rce: Th e World Factbook, C IA

Ind ias Demographic Dividend

Ind ia has one of the youngest populatio n amongst all natio ns

55

TRENDS IN THE AUTOMOBILE SECTOR

Production of automobiles

4.8 5.36.3

7.28.5

02468

10

2000-01 2001-02 2002-03 2003-04 2004-05

PR

OD

UC

TIO

N

IN

MIL

LIO

NtotalCAGR

15.4%

56

India's automobile sector - Trends

0

2

4

6

8

10

12

Nu

mb

er in

mill

ion

Automobile production 5.32 6.28 7.24 8.46 9.74

Automobile domestic sales 5.23 5.94 6.91 7.9 8.91

Automobile exports 0.18 0.31 0.48 0.63 0.81

2001-02 2002-03 2003-04 2004-05 2005-06

SEGMENT WISE MARKET SHARE

Growth Rates of different segments

23.5

11.314.3 14 14.2

05

10152025

CommercialVehicles

PassengerVehicles

Twowheelers

Threewheelers

totalAutomobiles

Segments

4 ye

ar C

AG

R

57

MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

58

Domestic Sales

Competitive Advantage Of Tata Heavy & Medium Commercial Vehicle

59

0102030405060708090

100

loading capacityspare partsm

aintainance cost

service stationbrand nam

etechnologyfinance availability

Tata H&MCVOthers

PROFIT MARGIN

When was the last time your TATA vehicle was serviced with a TATA dealer/ TASS ?

PERIOD NO. OF CUSTOMERSMARCH (07) 25APRIL (07) 32JAN-FEB (07) 25YEAR 2006 18

60

1399

933

2304

000

1329

726

1920

000

4778

87

6000

00

0

500000

1000000

1500000

2000000

2500000

LPT 1613 LPT 2515 407 EX

TOTAL COST TOTAL REVENUE

CHAPTER 10

CASE STUDY

THE RACE FOR ACE

ABSTRACT:

This case study is an endeavor to unfold the success story and the challenges of one of

the most successful commercial vehicles manufactured by Tata Motors i.e. ACE. The

company realized that the entry level for the semi-urban and rural market was a product

between three wheeler and a pick-up truck, at a price sensitive level. It put together a

team to develop such a vehicle, and it came up with an ACE.

Ace made a new segment called small commercial vehicle segment and is seen as an

ideal vehicle for short, narrow village roads as well as long highway hauls, for the small

bulky loads and large heavy ones. Indias first mini-truck- Tatas ACE was launched in

May 2005 and sold 6,500 units in a month. Since May 2005 till date Tatas Ace has

dominated the one ton four wheeler truck segment (SCVs). Ace is the only commercial

vehicle of Tata Motors whose demand exceeded the supply. The Tata Motors plant at

Pune which manufactured Tatas Ace had to increase its production to 100% i.e. annual

increase of production from 30,000 units to 60,000 units in the period 2005-2006.

Though Ace has performed exceptionally well for Tata Motors since it was launched in

the year 2005 and still dominates in the market in its own segment, but the future of Tata

Motors is full of challenges with all its competitors viz. Bajaj Auto, Force Motors,

Eicher, Piaggio, Atul Auto and Ashok Leyland are all ready to counter ACE, though its

always a tough task to compete with the products of Tata Motors. The case study tries to

find out the reasons for the success of ACE and the challenges ahead.

61

THE RACE FOR ACE

Ace has several firsts to its credit. Tata Motors will outsource more than 90 per cent of its

components compared with an average 60 per cent for its other vehicles. The exercise

threw up, according to company engineers, the first two-stroke diesel engine in the world

to be used in a commercial vehicle. Ace with sport car-like interiors and its noise and

vibration levels are closer to Indica's than to the truck family it belongs to.

Today, nearly all Tata vehicles are manufactured at its Pune factory. Ace will lead the

company to set up assembly units near the markets, setting off another big change in

manufacturing strategy. The project also sets another benchmark - it cost all of Rs 200

crore over five years - the lowest in Tata Motors' recent history for a new product. The

learnings are expected to accelerate chairman Tata's Rs 1 lakh-car dream.

Be sure, Ace is not just a small product for Tata Motors. The vehicle is expected to

replace three-wheeled goods carriers and, later, even passenger vehicles in small towns.

Small traders and farmers buy 136,000 such vehicles every year for transporting goods.

The number has increased rapidly in the last two years, with sales growing at 24 per cent.

In three years, analysts say Tata Motors may well be selling over 60,000 vehicles and

Ace could contribute up to 10 per cent of all commercial vehicle sales. It will also take

62

Tata products to new customers at the lower end of the market - the ones who may turn

loyal customers to Tata's larger vehicles as business grows. Ace, which is priced at Rs 2,

2,50,000-2,35,000 will be available at a down payment of a mere Rs 20,000. "In the short

run, it is going to be one big brand ambassador for Tata Motors.

FEATURES OF ACE

VERSATILITY

The ACE can be conveniently used in cities as well as in rural areas. 12 tyres for the

first time in its class give higher ground clearance and higher loading capacity resulting

in better performance on and off the road. The truck-like strength of the front and rear

leaf spring suspensions coupled with the shock absorbers provides a smooth ride and

great driving comfort. The rigid front axle is designed specially to weather Indian

conditions. With a small turning circle of 8.6m, the ACE can be safely and easily

navigated, both in narrow village streets and in dense city traffic.

SAVINGS

The performance of the engine as well as the comfortable conditions for the driver allow

the ACE to travel over 500 kms in a day. Low operating costs and the versatility offered

through features like its flat, large loading area and small turning radius, give a fantastic

opportunity to earn higher business revenue and higher profits, everyday. All this with

big Tata reliability make the ACE the best business partner for one and all.

STYLE

Car-like interiors and numerous accessories allow you to ride in style

A spare wheel attached to the lockable swing frame at the rear

Twin wiper for safe driving in rain

63

Horn pad on steering wheel

Easily accessible hazard warning switch for emergency

Engine start and stop with key

Styled dashboard with tray, digital clock, radio fitment provision, utility tray and clearly

visible instrument cluster

Lockable glove-box for keeping valuable documents

PERFORMANCE

The 700cc engine delivers a power of 16 HP @ 3200 rpm and a torque of 3.8 mkg @

2000 rpm. It is also eco-friendly and meets BS II and BS III standards. The water-cooled,

twin -cylinder IDI engine has an overhead cam shaft, temperature sensitive cooling-

system and rotary fuel injection pump, which together give high fuel efficiency and low-

maintenance operation. This also translates to longer life and lesser downtime. With the

lowest loading height of 675 mm, heavy loads can be conveniently placed in the load

body. The 4-forward synchromesh +1 reverse gear box gives smooth gear shifting.

COMFORT

Several big and small features have been added to ensure comfort for the occupants, even

on long rides. The fully-built sheet metal cab with doors, roof lining, and floor mat for

hear insulation and trims protect the occupants from rain, heat and cold. The ventilation

ducts, winding door glass and rear windows ensure good ventilation and continuous air

flow at leg and face level. Seats with soft cushion and back support ensure complete

driving comfort.

Other Features

Sun visor for protection from direct glare

Car like combi-switch with rotary switches for lamp and wiper control

64

Control pedals, gear shift and parking brake ergonomically positioned for maximum

comfort and easy access

Higher door opening angle and low floor height for easy boarding

SAFETY

Designed and manufactured using high strength steel, the ACE meets all Indian safety

norms - a novel feature in this class of vehicles. The ACE meets norms for frontal crash,

roof crush, and rear wall strength - assuring the utmost safety of the driver and the co-

driver. Seat belts are also provided for both occupants.

High braking performance is given through front disc brakes and rear drum brakes.

Driving visibility is excellent through the large windscreen, window glasses, large

overhead rear-view mirror and the large rear window. Large-sized, round headlamps with

bright halogen bulbs provide excellent lighting for night driving. Reversing is made easy

and safer with the help of a 2-box tail lamp with in-built reflector and the bright reverse

lamp at the rear.

KEY ISSUES AND CHALLENGES FOR ACE

1. High Cost

High cost is one of the major challenge Ace will have to face after the launch of piaggios

APE Truck. The price of Tata Ace is Rs 2,50,000 in comparison to its competitor

piaggios-APE which is priced at Rs 2,15,000, making a difference of Rs 35,000 between

the two which is quite high considering both Ape and Ace comes in the same category of

small commercial vehicles (SCVs) and both of them having one ton load carrying

capacity.

2. Fuel Efficiency and power train

65

The major threat for Ace is that its main competitor Piaggios- Ape Truck offers a

mileage of 20kmpl against Tatas Ace which offers a mileage of 14kmpl. So Ape Truk

definitely has an edge over ACE in terms of mileage. The other important difference is

that even Ape truk claims a maximum speed of 65km/hr whereas Ace claims a maximum

speed of 64km/hr.Ape also has a 6 speed gearbox in comparison to Ace which has 5

speed gearbox.

3. Style

Even the style of piaggios Ape-Truk is far more attractive than the Ace. The cabin of

Ape is given the look af a car and the tyre of Ace are radial which is weaker than the

tyres of Ape which has used nylon tyres.The Ace uses the traditional round shaped

headlamp whereas Ape provides a very trendy headlamp far good looking than the

traditional headlamp. This definitely has attracted customers to go for Ape-Truk in

comparison to Ace which does not have a trendy look. It is also available in more colours

than provided by Tata. Even Hyundai is planning to launch a a SMV in the same segment

which will eliminate the kind of monopoly enjoyed by Tata Ace in the small commercial

vehicle segment which also was Tatas own creation.

4. Aggressive Marketing Policy

Tatas Ace will have to give a thought on its marketing of Ace as its main competitors are

following aggressive marketing policies to counter attack Ace in the market. The Tata

Ace has already penetrated in both the urban and the rural market but the competitors are

also trying there best to cut the share of Ace in the small commercial vehicle segment and

make their presence felt in the market. Ape-Truk has decided to open large number of

authorized outlets and selling points targeting the Ace. They have kept their prices lower

than the Ace upto 30,000-35,000 which is an aggressive decision.

ANALYSIS AND CONCLUSION

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Looking at the present market scenario we can say that it was Tata who owns the credit

of giving a new commercial vehicle segment to India i.e the small commercial vehicle

segment. Before the introduction of Tatas Ace the market was dived into the following

segments viz., heavy commercial vehicles, medium commercial vehicles and light

commercial vehicles including the three wheeler cargo carriers. Tata was lagging in the

light commercial vehicle segment. The credit goes to Tata as it performed a survey of the

customers and understood the need of a low cost commercial vehicle which is between a

three wheeler carrier and a pick-up truck. The Ace was then the gift to the price sensitive

customers.

Its almost three years when Ace was launched in India by Tata and since then it has

performed well and has forced the other automobile manufacturing companies to think

and come up a product which can compete with the Ace. And the time has arrived when

the competitors have replied and replied well with Piaggios Ape-Truk being the first one

and the companies like Bajaj, Eicher, Atul auto an Force Motors will follow in the race to

capture the Ace. Tata will have to think in order to maintain there supremacy in the small

commercial vehicle segment and may be bring some changes in their product.

They will have to look into the cost of there production and also the marketing strategy

which has to be more competitive now after so many companies are entering in the small

commercial vehicle segment. Since the number of companies providing the small

segment commercial vehicles will increase, the customers will now be poised of various

choices. Prices are bound to decrease further as there will no more be monopoly enjoyed

by Tatas Ace and monopolistic competition will rule the prices. This also indicates that

Ace which is till now experiencing the growth stage may now enter into the mature stage

of the product life cycle. Decline stage may also follow unless a good strategic decision is

taken by the company. Aggressive marketing will also become the need of the hour.

Product modification and changes as per the market demand is needed even for a product

which may have ruled the market in its own segment for consecutive three years.

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END NOTE

The brand Tata is itself more than enough to speak the success story but to maintain this

success story in this cut throat competition in automobile sector.Tata not only needs to

maintain cost efficieny but it also has to maintain its century old brand image to retain its

position as the leader in the automobile sector.

REFERENCES

http://www.automobileindia.com/india-automotive/automotive-trends.html

http://www.tata.com/tata_sons/articles/20060818_rural_india.html

http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

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CHAPTER 11SYNOPSIS

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THE EFFICIENCY OF THE PRODUCT AND CUSTOMER SATISFACTION REVIEWName: Ajit Kumar.Industry Guide: Mr. Ran Vijay Kant.Faculty guide: Mr. Nishant Rai.The objective of the training was to ascertain the performance of the selected products and to find out the quality of service provided by the authorized service station of Tata Motors vehicles (commercial vehicles), to know the level of satisfaction of the customers of heavy and medium vehicles of Tata Motors from these service stations and to ascertain the areas of improvement.Tata Motors holds a major share in commercial vehicles where India holds 5th position in manufacturing of commercial vehicles in the world. Five products viz. LPT 1613, LPK 2516 TC, LPT 2515 TC and LPT2515 TCIC, 407 EX and ACE was selected for the above mentioned purpose. The competitors of Tata Motors were also taken into consideration while doing the research. The project helped me in improving my research skills and managerial skills. My analysis after the research is that there is a need for improvement in the product quality, service provided at the service stations and the spare parts provided by the dealers of the workshop. Lack of service stations in relation to the number of customers for servicing at the service stations is a major concern which needs to be taken care of and which is necessary to increase the customer satisfaction.My industry guide Mr. Ravi Kant (Manager Marketing) is a source of great inspiration for me. He was very helpful and cooperative. He used to guide me whenever I had any problem. I am really thankful to him for the support and guidance he has extended to me during my training.

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MISSION STATEMENT