A Project Report on STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

EXICUTIVE SUMMARY

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426

crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each

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

in the compact, midsize car and utility vehicle segments. The company is the world's fifth

largest medium and heavy commercial vehicle manufacturer, and the world's second

largest medium and heavy bus manufacturer.

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 is spread across India - Jamshedpur (Jharkhand) in

the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and

Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West

Bengal) to manufacture the company's small car. The nation-wide dealership, sales,

services and spare parts network comprises over 2,000 touch points. The company also

has a strong auto finance operation, TML Financial Services Limited, supporting

customers to purchase Tata Motors vehicles.

ABOUT THE TOPIC:

1. Statement of the problem.

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION

STRATEGIES EMPLOYED BY AUTOMAKERS IN MID-SIZE CAR SEGMENT

AND ITS EFFECT ON CONSUMER DECESSION MAKING

Product Line Management:

Product line management is about controlling the definition and release planning for a

product line. Market requirements, development capacities, strategic corporate decisions

are all harmonized, and the product's chances on the market are evaluated in a business

plan

Babasabpatilfreepptmba.com Page 1


DIFFERENTATION STRATGIES EMPLOYED BY AUTOMAKER MID-

SEGMENT CARS :

In marketing, differentiation is the process of distinguishing the differences of a

product or offering from others, to make it more attractive to a particular target market.

This involves differentiating it from competitors' products as well as one's own product

offerings.In Simple words Products are differentiated when the products of different

companies are not perfect substitutes instead, "every company has a monopoly of its own

product.

The following factors that make impact on consumer decision making.

1.) Model

2.) Price

3.) Delivery period

4.) Vehical life

5.) Vehical power

6.) After sales service

7.) Fuel consumption

8.) safety

9.) Schemes and offer

2. Need for study:

As the market for the automobile is having the huge accelerating growth in

the Indian market, to check differentiation strategies applied by automakers, analyzing its

impact on consumer decision making, to check in what area’s and circumstances it may

effect consumer decision in buying the vehicle.

Study Objective.

To study about the product line management

To understand the differentiation strategies applied by automakers

To understand the differentiation strategies impact on consumer decision

Making.


http://en.wikipedia.org/wiki/Competition

http://en.wikipedia.org/wiki/Target_market

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Marketing


3. Proposed outcome or benefits of the study.

After studying we come to know regarding the Present and future requirement

in the product differentiation of mid-size car segment in the Indian market. Thus the

feature’s and options that customers look when buying the product which would fulfill

their requirement .

Selection of data collection method

1. Survey: Personal Interview of customer

2. Measurement Technique: Questionnaire

3. Method of analysis: Simple Percentage Method, tabulation, etc

4. Sample Size: 100

DATA COLLECTION METHOD:

Primary data: Primary data are the data that are collected to help solve a problem or taken

advantage of an opportunity on which decision must be taken. The main method of

collecting primary data is survey method.

for example personal interview.

Secondary data: Secondary data collected from distributors, company people, guideline

book and Internet.

BRIEF FINDINGS:

Out of total sample taken 75 % respondents own the car and 25% of the

respondents do not own the car.

Out of total sample taken 66% respondents are interested to buy another car and

nearly 9% of the respondents do not intended to purchase another car.

Out of total sample taken of which 25% of the do not own the car and hence all

the 25% people are interested to buy the car.



Among the car 8% of the people are influenced by Brand image of the car, 24%

are influenced by vehicle power, 25% are influenced by safety feature’s of the

car, 34% are influenced by the price of vehicle and remaining 9% are of the

people are concerned of fuel consumption of the vehicle.

Among the car buyers nearly 26% of the people are influenced by the Mechanics

and 25% by friends, 17% by the schemes & offers, 16% by family and 16% by

the advertisement.

Schemes & offers given by the company influence 57% of the people change the

decisions and 43% are not influenced.

Offers & schemes influence 8% through 0% car finance, 8% by cash discount,

25% by Exchange offer, 25% by Free accessories and 34% by Extended warranty.

LIMITATIONS:

1) The research results are limited to Hubli City

2) All the practical experiences can not be put on the paper.



RECOMMENDATIONS:

The sample is collected in Tata service center were Tata vehicle brought for the

service.

The Data indicates that is is huge potential in the Indian automobile industry.

Thus the Tata should differentiate themselves from there compitators even better

then past and future so that they promote their products and try to keep their

market monopoly.

Nearly 66% of the people are interested to buy another car even though they have

a car. Thus the recommendation i want to give is ,Try to keep the customers

interest in Tata motors, don’t give the chance to the customer to get

dissatisfied .Which may probably result of changing their brand.

Nearly 25% of the people do not have the car, thus all the 25% of the people are

interested to own the car. This shows the potential of market in the Indian

automobile industry. Thus Tata must make promotional activities and keep

product differentation, so that they attract more customers.

According to the survey most of the car buyers look to price of vehicle. The Tata

has always kept the best price for his product and also has been successful in

it.Thus the Tata must provide even better price for his product in the future.

According to the survey most of the car buyers take suggestions of mechanics

and family. Thus mechanics suggest Tata motors because of the Vehicle power ,

which has best in its segment. Family people suggest the Tata motors because of

the space and comfort.



Schemes & offers given by the company influence the customer to change their

decision. Tata motors must try to give offers & schemes as many as possible with

in its rates. There are few customers who are not influenced by the offer’s &

schemes , so to protect their interest maintain the features ,quality and service

after sales.

Offers and schemes have been effective in the promotional activity. That’s what

the Tata has been doing .Hence Tata dealer must concentrate on offers like 0%

finance and Free acceories, which has been less attractive to the customers.



CONCLUSION:

The Study of product line management and differentiation strategies employed by

automakers in Mid-size car segment and its effect on consumer decision making.

concludes the following.

The data was taken looking to the scope in the Indian automobile industry. Thus

the Tata TATA motors differentiated themselves from there competitors to

promote their products and try to make their market monopoly in the diesel mid-

size cars.

The Data shows the people are interested to buy car. The Tata motors are trying to

keep the interest of the present customers, and thus they are not giving any

chances to customer to get dissatisfied.

The people who do not have the car have expressed their interest of buying Tata

motors. This indicates potential for the Tata motors in the Indian automobile

industry. The Tata motors are making promotional activities and differentiating

their product, so that they attract more customers.

The Tata motor has kept the attractive low price for his product and has been

successful in it. Thus the Tata motor is looking for even better price options for

future launches.

The many of Technical experts and Mechanics’ suggests the Tata motors, because

of the resistant to the Indian rough roads. They mechanics suggest Tata motors

because of the Vehicle power, which has best in its segment. Family people prefer

the Tata motors because of the space and comfort.


decision.

There are few customers who are not influenced by the offer’s & schemes ,so to

protect their interest maintain the features ,quality and good service after sales.



AUTOMOBILE INDUSTRY

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.

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the

Automobile Industry of India has come a long way. During its early stages the auto

industry was overlooked by the then Government and the policies were also not

favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent

years has made remarkable impacts on Indian Automobile Industry. Indian auto industry,

which is currently growing at the pace of around 18 % per annum, has become a hot

destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. With the growth of transportation system the

Automotive Industry of India is also growing at rapid speed, occupying an important

place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles

and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

Snippets

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.

Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

Tata Motors dominates over 60% of the Indian commercial vehicle market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.


http://www.surfindia.com/automobile/tata-motors-ltd.html


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

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.

India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment

Among the two-wheeler segment, motorcycles have 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.

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

three-wheelers.

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.

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.

Miscellaneous

Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the

country by the second half of 2008. It would be set up by city-based Prajay Engineers

Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for

automobile financing institutions and insurance services to create a complete range of

services required for both auto companies and customers. It will also have a multi-

purpose convention centre for auto fairs and product launches.


http://www.surfindia.com/automobile/auto-companies.html


http://www.surfindia.com/automobile/mahindra-mahindra-ltd.html

http://www.surfindia.com/automobile/maruti-udyog-ltd.html

http://www.surfindia.com/automobile/bajaj-auto-ltd.html

http://www.surfindia.com/automobile/tvs-motor.html

http://www.surfindia.com/automobile/hero-honda-motors-ltd.html



INDIAN AUTOMOBILE HISTORY

During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel

wheels, and four-wheel brakes.

In Brief

The origin of automobile is not certain. In this section of automobile history, we will only

discuss about the phases of automobile in the development and modernization process

since the first car was shipped to India. We will start automotive history from this point

of time.

The automobile industry has changed the way people live and work. The earliest of

modern cars was manufactured in the year 1895. Shortly the first appearance of the car

followed in India. As the century truned, three cars were imported in Mumbai (India).

Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was used

for transportation in India. In the begining of 15th century Portuguese arrived in China

and the interaction of the two cultures led to a variety of new technologies, including the

creation of a wheel that turned under its own power. By 1600s small steam-powered

engine models was developed, but it took another century before a full-sized engine-

powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and

Frank Duryea. It was the first internal-combustion motor car of America, and it was

followed by Henry Ford's first experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost

that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood,

and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort


http://www.surfindia.com/automobile/automobile-industry.html


and style rather than speed.

During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-

steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-

cylinder engine and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that

suited more to the needs of families. In 1930s, vehicles were less boxy and more

streamlined than their predecessors. The 1940s saw features like automatic transmission,

sealed-beam headlights, and tubeless tires.

The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It

was built on compact and stylized lines, and was capable of 230 kmh (144 mph).

This was the Indian automobile history, and today modern cars are generally light,

aerodynamically shaped, and compact.



INDUSTRY INVESTMENT

According to Commerce Minister Kamal Nath, India is an attractive destination for

global auto giants like BMW, General Motors, Ford and Hyundai who were setting base

in India, despite the absence of specific trade agreements.

Current Scenario

On the cost front of Indian automobile industry, OEMs are eyeing India in a big

way, investing to source products and components at significant discounts to

home market.

On the revenue side, OEMs are active in the booming passenger car market in

India.

Overview

By 2010, India is expected to witness over Rs 30,000 crore of investment.

Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.

Hyundai will bring in more than Rs 3,800 crore to India.

Tata Motors will be investing Rs 2,000 crore in its small car project.

General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.

Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of

investment.

Why India


http://www.surfindia.com/automobile/general-motors.html


http://www.surfindia.com/automobile/hyundai-motor.html



The economy of India is emerging. The following table shows the ranking of India in the

past four years.

Rank 2005 2004 2003 2002

1 China China China China

2 India Thailand Thailand Thailand

3 Thailand India USA USA

4 Vietnam Vietnam Vietnam Indonesia

5 USA USA India Vietnam

6 Russia Russia Indonesia India

7 Korea Indonesia Korea Korea

Twin Advantages:

Scaling costs

Optimizing resources

Note: Excellent source for IT based engineering solutions - for products & process

integration.

Facts & Figures

The automobile industry in India is on an investment overdrive. Be it passenger car or

two-wheeler manufacturers, commercial vehicle makers or three-wheeler companies -

everyone appears to be in a scramble to hike production capacities. The country is

expected to witness over Rs 30,000 crore of investment by 2010.

Over the next one year, some 20 new cars will be seen on Indian roads. Take note of this,

Maruti Udyog is coming up with new Zen and the diesel version of Swift during the next

few months. Hyundai will also be unmasking the Verna and a brand new diesel car.

General Motors will be launching a mini and may be a compact car.







Most of the companies have made their intentions clear. Maruti Udyog has set up the

second car plant with a manufacturing capacity of 2.5 lakh units per annum for an

investment of Rs 6,500 crore (Rs 3,200 crore for diesel engines and Rs 2,718 crore for

the car plant itself). Hyundai and Tata Motors have announced plans for investing a

similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 crore to

India, Tata Motors will be investing Rs 2,000 crore in its small car project.

General Motors will be investing Rs 100 crore, Ford about Rs 350 crore and Toyota

announced modest expansion plans even as Honda Siel has earmarked Rs 3,000 crore

over the next decade for India - a sizeable chunk of this should come by 2010 since the

company is also looking to enter the lucrative small car segment.

Some new entrants will also taste the water. They are the big names in passenger cars like

Citroen, Volkswagen AG, Nissan (separately, apart from its tie-up with Suzuki), Alfa

Romeo, Maserati, Land Rover and Aston Martin.

Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have

each announced well over Rs 1,000 crore of investment. Mahindra & Mahindra's joint

venture with International Trucks is expected to see an infusion of at least Rs 500 crore.

In two-wheelers segment, Chinese bike major Lifan and the iconic US brand Harley-

Davidson are expected to enter India soon. Hero Honda is about to establish its fourth

manufacturing plant. Bajaj Auto and TVS Motors are moving to the excise-free zones of

Himachal Pradesh and Uttaranchal for putting up new capacity.


http://www.surfindia.com/automobile/tvs-motor.html

http://www.surfindia.com/automobile/bajaj-auto-ltd.html


http://www.surfindia.com/automobile/mahindra-mahindra-ltd.html

http://www.surfindia.com/automobile/suzuki-motor-corporation.html

http://www.surfindia.com/automobile/toyota-kirloskar-motor-ltd.html

http://www.surfindia.com/automobile/ford-india-limited.html



INDIAN AUTOMOBILE INDUSTRY GROWTH

The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per

cent.

Current Scenario

The Indian automobile industry crossed a landmark with total vehicle production

of 10 million units.

Car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The two-wheeler market grew by 13.6 per cent with 70,56,317 units against

62,09,765 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against

3,18,430 units in 2004-05.

Overview

India, sourcing base for global auto majors.

Passenger car and motorcycle segment is set to grow by 8-9%.

The two-wheeler segment will clock 11.5% rise by 2007.

Commercial vehicle to grow by 5.2 per cent.

Estimated component market size is US$ 6.7 bn.

Facts & Figures

India, in auto sector, is turning to be a sourcing base for the global auto majors. The

passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple

of years, says the ICRA report. The industry is likely to maintain the growth momentum

picked up in 2002-03.

The ICRA's analysis points on the auto sector that the passenger car market in the country

was inching towards cars with higher displacements. The sports-utility-vehicle (SUV)

that was getting crowded everyday, would witness intense competition as many SUVs

had been competitively priced, the report said.




Honda, Suzuki, General Motors and Hyundai, the global automakers had already

launched their premium SUVs in the market to broaden their portfolio and create product

excitement in the segment estimated at about 10,000 units annually.

In the two-wheeler segment, according to the report, the motorcycles would clock 11.5

per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales

would decelerate and mopeds would also see the same. Overseas market would present

huge opportunities for the two-wheeler makers.

The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy

commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks

would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per

cent.

Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as

against 78,97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle production of 10

million units.

According to the Society of Indian Automobile Manufacturers (SIAM), car sales

was 8,82,094 units against 8,20,179 units in 2004-05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.

The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units


Motorcycles had the upward march, 17.1 per cent in domestic market touching

58,15,417 units against 49,64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units

in 2004-05.








Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against

3,18,430 units in 2004-05.

Medium and heavy commercial vehicles managed a growth of 4.5 per cent against

23 per cent growth in the year ended March 31, 2005.

Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units


Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units

in 2004-05.

Auto Component Market

The Indian auto parts industry is significantly fragmented with a large number of players

having a turnover of less than US$10 million per year. The industry directly employs

about 2,50,000 people and has an annual turnover over US$ 56.3 billion.

Estimated market size - US$ 6.7 bn

Estimated market size by 2012 - US$ 17 bn

Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by

Original Equipment Manufacturers (OEMs).

Market Advantage

Fast paced urbanization to rise from 28% to 40% by 2020.

Upward migration of household income levels.

Middle class expanding by 30-40 million every year.

Growing working population.



Vehicle Production in India

India is the 11th largest Passenger Cars producing countries in the world and 4th largest

in Heavy Trucks

Indian Market Analysts are jubilant over the fact that India has the fastest growing

automobile industry (passenger cars segment) in the world today. This is seen as the

result of rapid increase of middle-class population in the country combined with the

government's pro-development policies.

The findings of International Organization of Motor Vehicle Manufacturers revealed that

in India the car production had grown to 30% in 2004, thus leading the table, Brazil came

a distant second with the increase of 17%.

Automobile Industry is the largest industry in India with an impressive growth in the last

two decades. The reason behind the growth was abolition of licensing in 1991 and

permitting automatic approval and successive liberalization of the sector.

According to estimation the compound annual growth rate (CAGR) of Indian Automobile

sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for

FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies

along with the global giants have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata

Motors. Hyundai did well but the difference was nearly half of Tata Motors.

Current Scenario

The growth rate of Passenger Cars in 2004 was 30% in India where as the average

growth rate of top 12 Passenger Cars producing countries were just 5.1%. In

Heavy Trucks it was 32% and 14.6% respectively.

Component industry's growth was only 9% between 1997-2000. But between

2000-2005 it has grown to 20%. It is projected 17% between 2005-2014.






http://www.surfindia.com/automobile/auto-companies.html



Overview

Largest industry in India.

By 2010 there will be 13,008 million cars.

Maruti Udyog Ltd. is the leading 4-wheelers manufacturer.

Production of 4-Wheelers

Types of Vehicle 2002-03 2003-04 2004-05 2005-06 Passenger Vehicles 557400 782550 960480 1045880Utility Vehicles 114470 146330 182020 196380Multipurpose Vehicles 51450 60670 67370 66665Total 723320 989550 129870 1308925

CAR STATISTICS INDIA

The Indian automotive industry is the 2nd fastest growing in the world. About 8 million

vehicles are produced annually in this country toady. During 2005-2006, India has

emerged as the 3 rd largest market in the Asia Pacific Region. With various car

manufacturing companies setting up their units in different parts of the country, the

production of the cars will increase at a very fast rate. The car statistics indicate that India

will soon become one of the top 10 car manufacturing countries , leaving behind the U.K.

Car statistics also show that by the end of the fiscal year 2006-2007, the car production

capacity in India will exceed the mark of 2 million. Thus, the production of cars will

increase by 70% from the present capacity of 1.2 million.

The domestic sales of passenger cars have increased significantly over the years. A

graphical representation of the domestic sale of cars will give you an insight about the

present market situation prevailing in the country:




In the recent years, India has emerged as one of the major bases for manufacturing small

passenger cars. At present the Indian automotive industry boasts of being the 3 rd largest

manufacturer of small cars. According to the car statistics almost 70 % of the cars sold in

this country come under the segment of small cars. A number of car manufacturers like:

Maruti Udyog, Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General

Motors etc offer various new model of cars now and then. It is expected that the various

automobile manufacturers will be investing about $ 5 billion in India, between 2005-

2010.

As per the car statistics, export of passenger cars from India has also grown considerably

over the last decade. A graphical representation of car export trend will help you to make

an in-depth analysis of the present status of the Indian automotive industry:



With new strategies being implemented and more investments being made in Indian

automotive industry the production as well as the domestic sale and exports will increase

substantially.

A graphical representation of the total sale trend of passenger cars (including the

domestic sale and exports) is given below:



To know more about car statistics and matters related to automobiles, do browse through

the pages of automobileindia.com.

India definitely is shining; with a GDP that is sparkling at over 8 per annum the country

certainly is on the right course. The automobile exports are at an all time high as was

indicated by Society of Indian automobile Manufacturers in a report released in 2006.

According to the report, the passenger car segment saw a rise of 9% in January 2006.

The following table will provide a clear picture of the rapid rise of automobile Export in

India.

Types of Vehicle 2002-03 2003-04 2004-05 2005-06

Passenger Vehicles 70250 125300 160650 170200

Utility Vehicles 1180 3050 4510 4490

Multipurpose Vehicles 570 915 1225 1100

Total 72000 129265 166385 175790



Analysis of Indian Exports:

Strengths

Cost competitiveness in terms of labor and raw material.

Established manufacturing base. Economics of scale due to domestic market.

Potential to harness global brand image of the parent company.

Global hub policy for small car like Hyundai, Suzuki, etc.

Weakness

Perception about quality.

Infrastructure bottlenecks.

Opportunities

Huge export markets such as Europe, America, Africa, and others for Indian cars.

Threats

China, Malaysia, Thailand, etc.

Many other countries also have strategies for export promotion.

Export Imperatives:

Internal Factors:

Attaining high quality for global standards.

Continuous cost reduction for global competitiveness.

Supply chain management (logistics).

Attaining economies of scale & scope.

External Factors:

Improve infrastructure (ports, roads, etc).

Improve EXIM regulations.

VEHICLE DISTRIBUTION IN INDIA





Maharashtra has maximum number of registered vehicles in India.

Overview

In this section we will discuss about distribution of vehicles in Indian States and Union

Territories. If we look at the graph of vehicle distribution by area, we will learn that in

Maharashtra, maximum number of vehicles ply. Check yourself from the following

details:

Non-Transport Vehicles in States

Maharashtra has the most number of vehicles followed by Tamil Nadu and

Gujarat The figures are 8133837, 8004982 and 6508397 units respectively.

In cars , Maharashtra leads the path with 831261 registered cars and next to it is

Tamil Nadu and Gujarat having 690271 and 504801 registered units respectively.

In two-wheelers, Tamil Nadu has registered the maximum units, 6260093.

Transport Vehicles in States

Maharashtra is the leader once again with a total of 1066610 registered vehicles.

In Light Motor Vehicles for goods Maharashtra has registered 228157 vehicles;

Tamil Nadu with 195069 vehicles holds the second position.

In Light Motor Vehicles for passengers, Maharashtra tops by having 463550 units

and Kerala follows with 276244 units.

Most number of taxis ply is Tamil Nadu which is followed by Kerala and then by

Maharashtra. The figures are 110080, 108503 and 94920 units respectively.

Non Transport Vehicles in Union Territories

Total non-transport vehicles in the Indian Union Territories are 4669433.

Delhi has the maximum registered non-transport vehicles plying, 3751582. Next

is Chandigarh with 548790 and Pondicherry with 275422 registered vehicles.

Transport Vehicles in Union Territories

Total numbers of transport vehicles in the Indian Union Territories are 6999998.



Delhi has the maximum registered transport vehicles plying, 219288. Next is

Pondicherry with 17054 and Chandigarh with 12985 registered vehicles.

Follow the link below to know the distribution of automobiles in details:



PROFILE OF THE ORGANISATION

JEHANGIR RATANJI DADABHOY (JRD) TATA:J.R.D. TATA was born on July 29, 1904 in Paris. He was second child of Ratanji

Dadabhoy Tata and his French wife Coni. He spends his early years in Hardelot a beach

town in France, where his interest in flying comes out. His interest varied like he was

desired to become a scholar at Cambridge, had a passion for fast cars. He has served in

regiment called Les Sap his (The Sepoys) with the French Army in 1924.

On the death of Nouroji Saklatvala, Chairman of Tata and sons in the year 1938 JRD

Tata was 34th old, catapulted to the head of India’s largest industrial empire. He guided

the destiny of India’s largest business house over half a century. In the year 1939 Tata

Chenicals started its struggle towards pioneering a self reliant, basic inorganic chemical

industry for India in the face of repeated crisis in the year 1945 just before India’s

independence, Tata Steel promoted the Tata Engineering and Locomotive Company with

the objective of making locomotives for the Indian Railways. Today, TATA has emerged

as the largest Passanger Vehicle producer.

In the year 1932 it pioneered civil aviation on the subcontinent by launching the group’s

Airline, which is today The National Airline. Dr. Homi baba’s ambition to catapult India

in to the nuclear age was found by JRD Tata, also initiated in the family planning

movement, preserving the country’s priceless flock arts. Other than these most important

were his guidance for India’s largest business group employing more than a quarter

million over half a century.



RATAN TATA :Under him the Tata Engineering and locomotive company was incorporated in the year

1945 in Jameshedpur for the manufacture of commercial vehicles. The company's

manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune

(Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar

(Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to

manufacture the company's small car

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426

crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in

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

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

world's fifth largest medium and heavy commercial vehicle manufacturer, and the

world's second largest medium and heavy bus 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." Tata Motors helps its employees realize their potential through innovative HR

practices. The company's goal is to empower and provide employees with dynamic

career paths in congruence with corporate objectives. All-round potential development

and performance improvement is ensured by regular in-house and external training. The

company has won several awards recognizing its training programmes.

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 is spread across India - Jamshedpur

(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow

(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur

(close to Kolkata in West Bengal) to manufacture the company's small car. The nation-

wide dealership, sales, services and spare parts network comprises over 2,000 touch



points. The company also has a strong auto finance operation, TML Financial Services

Limited, supporting customers to purchase Tata Motors vehicles.

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. In 2004, it acquired the Daewoo Commercial Vehicles Company,

Korea's second largest truck maker. The rechristened Tata Daewoo Commercial

Vehicles Company has launched several new products in the Korean market, while 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, with an option to acquire the remaining stake as well. Hispano's presence

is being expanded in other markets. In 2006, it 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.

Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive

Assembly Plant Company of Thailand to manufacture and market the company's pickup

vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint

venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata

cars and Fiat powertrains for the Indian and overseas markets; Tata Motors already

distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto

entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat

nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The pick-up will be

sold in South and Central America and select European markets.

These linkages will further extend Tata Motors' international footprint, established

through exports since 1961. While currently about 18% of its revenues are from

international business, the company's objective is to expand its international business,

both through organic and inorganic growth routes. 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, Ukraine, Russia and Senegal.

The foundation of the company’s growth 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. The R&D establishment includes a team of 1400 scientists

and engineers. The company's Engineering Research Centre was established in 1966,

and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering

technologies and products. 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. The ERC in Pune, among

whose facilities are India's only certified crash-test facility and hemi-anechoic chamber

for testing of noise and vibration, has received several awards from the Government of

India. Some of the more prominent amongst them are the National Award for Research

and Development Efforts in Industry in the Mechanical Engineering Industries sector in

1999, the National Award for Successful Commercialisation of Indigenous Technology

by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in

2004.

The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in

the UK. TMETC is engaged in design engineering and development of products,

supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and

Hispano Carrocera also have R&D establishments at Gunsan in South Korea and

Zaragoza in Spain.

The pace of new product development has quickened through an organisation-wide

structured New Product Introduction (NPI) process. The process with its formal

structure for introducing new vehicles in the market, brings in greater discipline in

project execution. The NPI process helped Tata Motors create a new segment, in 2005,

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 focussing 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 labour and

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

accordance with this, it 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.

Tata Motors (Previously known as Tata Engineering and Locomotive Co) is the youngest

passenger car company in the world. It was established in the year 1945. Initially, they

were into the manufacturing of trains. However, Tata motor is solely responsible for

showcasing India's automotive industry to the rest of the world. It did so by designing

and developing its own indigenous cars and thus placing India on the world automobile

map. Tata Motors much like its parent company (Tata Group) has far fetched vision and

always thrives for excellence.

It was established with a vision of becoming a global car manufacturer from India. And

today, it has indeed achieved its feat of becoming a global player in the automobile

industry. It has a wide range of automobiles varying from commercial vehicles to

passenger vehicles to multi-utility vehicle etc. Tata Motors is very committed to issues

like Corporate Social Responsibility, Human Rights, Labour, and Environmental



Standards. They are partners to the United Nations Global Compact.

Tata Motors is India's largest automobile company and the sixth biggest commercial

vehicle manufacturer in the world. In the year 2004, it became the first Indian

Engineering Company to be listed in the New York Stock Exchange. The company had

earned revenue of Rs 24,000 crores for the financial year of 2005-06. Hence, making its'

presence felt on the Indian roads on a regular basis. Since, 1954 (when the first Tata

vehicle was launched) till today, over 3.5 million Tata vehicles ply on the Indian roads.

Today, Tata is a global player having markets in Europe, Africa, South Asia, South East

Asia, Middle East and Australia. This leap in the global market started from 1961. Once,

the export division was established.

Tata Motors initially started by manufacturing trucks by collaborating with Daimler Benz

of Germany form 1954 till 1969. At that point of time, the trucks that were manufactured

were known as Tata Mercedes-Benz Trucks. However, after the collaboration period was

over, the trucks were then called Tata Trucks.

But it was just the starting for them. Later, in the early 90's they entered the passenger

vehicle segment by launching the Tata sierra, (India's first sports vehicle) and the Tata

Estate. However, the biggest achievement came later in 1998, when Tata developed the

first indigenously developed small car of India called the Tata indica. And then Tata

Indigo was launched in 2002. The name "indica" came from the words "India's Car". And

very soon Tata indica became the most popular car in this segment. Then, later in 2005

they launched India's first indigenously developed Mini- Truck called the Tata Ace.

Recently, in order to fulfill its global dream, Tata Motors has acquired the Daewoo

Commercial Vehicles Company, Korea's second largest truck manufacturer, in the year

2004. In 2005, they acquired 21% stake in Hispano Carrocera, a Spanish bus and coach

manufacturer. They have manufacturing plants in Jamshedpur, Pune and Lucknow. They



also have assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia

and Senegal.

The success story of Tata Motors can be based on the facts that they have excellent

foresight, they understand the needs and the wants of their customers very well, they have

a well organized and efficient R&D department and that they have high aims and

standards which are fulfilled but not at the cost of quality and efficiency.

AREAS OF BUSINESS

Tata Motors' product range covers passenger cars, multi-utility vehicles and light,

medium and heavy commercial vehicles for goods and passenger transport.

Passenger car

The Company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and

the station wagon Indigo Marina in 2004. The next car to be rolled out will be the Nano,

unveiled in January 2008. Tata Motors already distributes Fiat-branded cars in India.

Utility vehicles

Tata Sumo was launched in 1994 and Tata Safari in 1998. Variants of these models are

also available in the market.

Commercial vehicles

The company entered the mini-truck segment in 2005 with Tata Ace. The commercial

vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axled

vehicles in the above 40-tonne segment. Through the Tata Daewoo Commercial Vehicle

Company it offers high horsepower vehicles of 220 HP to 400 HP for dump trucks,

tractor-trailers, mixers and cargo applications.

The company also manufactures and sells passenger buses — 12-seaters to 60-seaters —



in the light, medium and heavy segments, including Magic, a four-wheeler public

transport developed on the Ace platform, and Winger, a maxi-van.

Research and development

Tata Motors has over 1400 engineers and scientists in six R&D centers in India, South

Korea, Spain and the UK. The company's R&D facilities include India's only certified

crash-test facility and a hemi-anechoic chamber for testing of noise and vibration. The

company draws on the expertise of leading international design and styling houses such

as the Institute of Development in Automotive Engineering and Stile Bertoni in Italy.

The company is developing environment-friendly electric and hybrid vehicles as well as

vehicles that can run on alternate fuels (such as biofuels and hydrogen) for personal and

public transportation. It also implements several environment-friendly technologies in

manufacturing processes so as to enhance resource conservation.

Exports

Tata Motors' vehicles are exported to Europe, Africa, the Middle East, South and South

East Asia and South America. The company has joint ventures and franchisee operations

in Bangladesh, Ukraine, Kenya, Russia and Senegal.

Associates

Tata Motors is pursuing growth internationally through exports and acquisitions. It has a

joint venture with Marcopolo, the Brazil-based maker of bus and coach bodies. It has also

entered into a joint venture with Thonburi Automotive Assembly Plant Company of

Thailand to manufacture and market the company's pickup vehicles in Thailand. Tata

Motors and Fiat Auto have entered into an agreement for a Tata license to build a

commercial vehicle at Fiat's facilities in Córdoba, Argentina.

The company has made substantial investments in building a network of associate and

subsidiary companies and joint ventures that complement and support its business

activities. These include:



Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of Tata

Motors in the business of heavy commercial vehicles. It is South Korea's second

largest truck maker and the largest exporter of heavy trucks.

Telco Construction Equipment Company makes construction equipment and

offers allied services. Tata Motors has a 60 per cent holding; the rest is held by

Hitachi Construction Machinery Company, Japan.

Tata Technologies provides specialized engineering and design services, product

lifecycle management and product-centric information technology services. It has

two operating companies, INCAT and Tata Technologies iKS.

Tata Cummins manufactures high horsepower engines used in the company's

range of commercial vehicles.

HV Transmissions and HV Axles are 100 per cent subsidiaries that make

gearboxes and axles for heavy and medium commercial vehicles.

TAL Manufacturing Solutions is a 100 per cent subsidiary that provides factory

automation solutions and designs and manufactures a wide range of machine

tools.

Tata Motors European Technical Centre is a UK-based 100 per cent subsidiary

engaged in design engineering and development of products.

TML Financial Services is a 100 per cent subsidiary in the business of financing

customers and channel partners of Tata Motors.

Hispano Carrocera is a reputed Spanish bus manufacturing company in which the

company has acquired a 21 per cent stake.

Tata Auto Comp Systems (TACO) is a holding company for promoting domestic

and foreign joint ventures in auto components and systems. It is also engaged in

engineering services, supply chain management and after-market operations for

the auto industry.

Concorde Motors is a 100 per cent subsidiary that retails Tata Motors' range of

passenger vehicles

Corporate social responsibility


http://www.tata.com/tata_autocomp/index.htm

http://www.tata.com/tal/index.htm

http://www.tata.com/tata_cummins/index.htm

http://www.tata.com/tata_tech/index.htm

http://www.tata.com/tce_cons_engg/index.htm


Tata Motors is a signatory to the United Nations Global Compact. It focuses on health,

education, water management, environment and employment generation issues in areas

where it operates. These continuing initiatives have received national recognition: Tata

Motors was conferred the 'CII-ITC Sustainability Award 2006 for Significant

Achievement on the Journey towards Sustainable Development' and the 'Golden Peacock

Award for Corporate Social Responsibility'.

Tata Motors has led the Indian automobile industry's anti-pollution efforts through a

series of initiatives in effluent and emission control. The company introduced emission

control engines in its vehicles in India before the norm was made statutory. Modern

effluent treatment facilities, soil and water conservation programmes and tree plantation

drives at its plant locations contribute to the protection of the environment and the

creation of green belts.

Location

Tata Motors' plants are located at Jamshedpur (eastern India), Pune (west), Lucknow and

Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at

Ranjangaon, near Pune. The company is establishing two new plants at Dharwad (south)

and Singur (east).

Contact

Bombay House

24, Homi Mody Street

Mumbai 400 001

India

Phone: +91 (22) 6656 1676

Email: [email protected]

Email for international inquiries: [email protected]

MILESTONES:


mailto:[email protected]

mailto:[email protected]


It has been a long and accelerated journey for Tata Motors, India's leading automobile

manufacturer. Some significant milestones in the company's journey towards excellence

and leadership.

1945 Tata Engineering and Locomotive Co. Ltd. was established to

manufacture locomotives and other engineering products.

1948 Steam road roller introduced in collaboration with Marshall Sons (UK).

1954 Collaboration with Daimler Benz AG, West Germany, for manufacture

of medium commercial vehicles. The first vehicle rolled out within 6

months of the contract.

1959 Research and Development Centre set up at Jamshedpur.

1961 Exports begin with the first truck being shipped to Ceylon, now Sri

Lanka.

1966 Setting up of the Engineering Research Centre at Pune to provide

impetus to automobile Research and Development.

1971 Introduction of DI engines.

1977 First commercial vehicle manufactured in Pune.

1983 Manufacture of Heavy Commercial Vehicle commences.

1985 First hydraulic excavator produced with Hitachi collaboration.

1986 Production of first light commercial vehicle, Tata 407, indigenously

designed, followed by Tata 608.

1989 Introduction of the Tatamobile 206 - 3rd LCV model.

1991 Launch of the 1st indigenous passenger car Tata Sierra.



TAC 20 crane produced.

One millionth vehicle rolled out.

1992 Launch of the Tata Estate.

1993 Joint venture agreement signed with Cummins Engine Co. Inc. for the

manufacture of high horsepower and emission friendly diesel engines.

1994 Launch of Tata Sumo - the multi utility vehicle.

Launch of LPT 709 - a full forward control, light commercial vehicle.

Joint venture agreement signed with M/s Daimler - Benz / Mercedes -

Benz for manufacture of Mercedes Benz passenger cars in India.

Joint venture agreement signed with Tata Holset Ltd., UK for

manufacturing turbochargers to be used on Cummins engines.

1995 Mercedes Benz car E220 launched.

1996 Tata Sumo deluxe launched.

1997 Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

1998 Tata Safari - India's first sports utility vehicle launched.

2 millionth vehicle rolled out.

Indica, India's first fully indigenous passenger car launched.

1999 115,000 bookings for Indica registered against full payment within a

week.

Commercial production of Indica commences in full swing.



2000 First consignment of 160 Indicas shipped to Malta.

Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.

Utility vehicles with Bharat 2 (Euro II) compliant engine launched.

Indica 2000 (Euro II) with multi point fuel injection petrol engine

launched.

Launch of CNG buses.

Launch of 1109 vehicle - Intermediate commercial vehicle.

2001 Indica V2 launched - 2nd generation Indica.

100,000th Indica wheeled out.

Launch of CNG Indica.

Launch of the Tata Safari EX

Indica V2 becomes India's number one car in its segment.

Exits joint venture with Daimler Chrysler.

2002 Unveiling of the Tata Sedan at Auto Expo 2002.

Petrol version of Indica V2 launched.

Launch of the EX series in Commercial vehicles.

Launch of the Tata 207 DI.

2,00,000th Indica rolled out.

5,00,000th passenger vehicle rolled out.

Launch of the Tata Sumo'+' Series

Launch of the Tata Indigo.

Tata Engineering signed a product agreement with MG Rover of the

UK.

2003 Launch of the Tata Safari Limited Edition.

The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.

On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering



becomes Tata Motors Limited.

3 millionth vehicle produced.

First CityRover rolled out

135 PS Tata Safari EXi Petrol launched

Tata SFC 407 EX Turbo launched

2004 Tata Motors unveils new product range at Auto Expo '04.

New Tata Indica V2 launched

Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment

agreement

Indigo Advent unveiled at Geneva Motor Show

Tata Motors completes acquisition of Daewoo Commercial Vehicle

Company

Tata LPT 909 EX launched

Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy

duty truck 'NOVUS' , in Korea

Sumo Victa launched

Indigo Marina launched

Tata Motors lists on the NYSE

2005 Tata Motors rolls out the 500,000th Passenger Car from its Car Plant

Facility in Pune

The Tata Xover unveiled at the 75th Geneva Motor Show

Branded buses and coaches - Starbus and Globus - launched

Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus

manufacturing Company

Tata Ace, India's first mini truck launched

Tata Motors wins JRD QV award for business excellence.

The power packed Safari Dicor is launched



Introduction of Indigo SX series - luxury variant of Tata Indigo

Tata Motors launches Indica V2 Turbo Diesel.

One millionth passenger car produced and sold

Inauguration of new factory at Jamshedpur for Novus

Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched

Launch of Tata Novus

Launch of Novus range of medium trucks in Korea, by Tata Daewoo

Commercial

Vehicle Co. (TDCV)

2006 Tata Motors vehicle sales in India cross four million mark

Tata Motors unveils new long wheel base premium Indigo & X-over

concept at Auto Expo 2006

Indica V2 Xeta launched

Passenger Vehicle sales in India cross one-million mark

Tata Motors and Marcopolo, Brazil, announce joint venture to

manufacture fully built buses & coaches for India & markets abroad

Tata Motors first plant for small car to come up in West Bengal

Tata Motors extends CNG options on its hatchback and estate range

TDCV develops South Korea's first LNG-Powered Tractor- Trailer

Tata Motors and Fiat Group announce three additional cooperation

agreements

Tata Motors introduces a new Indigo range

2007 Tata Motors launches the longwheel base Indigo XL, India's first stretch

limousine

Tata Motors' integrated Customer Relationship Management (CRM)-

Dealer Management System (DMS) initiative crosses the significant



milestone of covering 1000 locations in India and abroad.

Tata Motors introduces Magic & Winger - creates new segments in

urban and rural passenger transportation.

Management:

Board of Directors

Mr. Ratan N Tata (Chairman)

Mr. N A Soonawala

Dr. J J Irani

Mr. V R Mehta

Mr. R Gopalakrishnan

Mr. Nusli N Wadia

Mr. S M Palia

Dr. R A Mashelkar

Mr. Ravi Kant

Mr. P M Telang

Senior Management

Mr. Ravi Kant Managing Director

Mr. P M Telang Executive Director (Commercial Vehicles)

Mr. Rajiv Dube President (Passenger Cars)

Mr. C

RamakrishnanChief Financial Officer



Mr. P Y Gurav Vice President (Corporate Finance-Accounts and Taxation)

Dr. S J Tambe Vice President (Human Resource)

Mr. Zackria Sait Vice President (Technical Services)

Mr. A M Mankad Head (Car Plant)

Mr. S B Borwankar Head (Jamshedpur Plant)

Mr. S Krishnan Vice President (Commercial-PCBU)

Mr. Ravi Pisharody Vice President (Sales & Marketing)

Mr. H K Sethna Company Secretary

Corporate Communications

Mr. Debasis Ray

Tel: 022 - 66657613 Head - Corporate Communications

Flash Figures for March, 2008

PRODUCTION

Category Mar'08 Mar'07 Mar'06 2007-08 2006-07 2005-06

M &

HCV 20312 17785 15586 175383 185091 136111

LCV* 14628 14352 11601 167988 151499 107380

UTILITY 5917 6325 5007 49715 50074 40378

CARS 21024 21024 16978 182212 195782 169689

TOTAL 61881 59486 49172 575298 582446 453558



SALES

A. For the month

Domestic Exports Total

Category Mar'08 Mar'07 Mar'06 Mar'08 Mar'07 Mar'06 Mar'08 Mar'07 Mar'06

M &

HCV 20639 17673 16312 1637 1410 1036 22276 19083 17348

LCV* 15354 13047 10977 3076 2948 2915 18430 15995 13892

UTILITY 6560 6109 4954 57 118 367 6617 6227 5321

CARS 18177 19651 17655 995 1823 2190 19172 21474 19845

TOTAL 60730 56480 49898 5765 6299 6508 66495 62779 56406

B. For the year

Domestic Exports Total

Category2007-

08

2006-

07

2005-

06

2007-

08

2006-

07

2005-

06

2007-

08

2006-

07

2005-

06

M &

HCV 166037 173381 128714 13363 11560 8249 179400 184941 136963

LCV 147334 125792 86236 26100 23412 21848 173434 149204 108084

UTILITY 47700 47893 37905 2599 1416 1881 50299 49309 39786



CARS 167058 179000 150951 12210 16408 18561 179268 195408 169512

TOTAL 528129 526066 403806 54272 52796 50539 582401 578862 454345

Manufacturing Units:

Tata Motors owes its leading position in the Indian automobile industry to its strong

focus on indigenisation. This focus has driven the Company to set up world-class

manufacturing units with state-of-the-art technology. Every stage of product evolution-

design, development, manufacturing, assembly and quality control, is carried out

meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in

the West and Lucknow in the North.

Jamshedpur:

Established in1945, the Jamshedpur unit was the company's first unit and is spread over

an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory,

Cab & Cowl Factories, and the Novus.

Pune:

The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad

(130 acres). It was established in 1966 and has a Production Engineering Division,

which has one of the most versatile tool making facilities in the Indian sub-continent.

Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among all the Tata

Motors locations and was established in 1992 to meet the demand for Commercial

Vehicles in the Indian market.


http://www.tatamotors.com/our_world/?ViewID=3




Uttarakhand

The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand.

The plant will begin commercial production during the course of the year.




INTRODUCTION TO MANICKBAG

Service of Manickbag:

Manickbag is a exclusive showroom for Tata motors situated in vidyanagar Hubli. It is

the single showroom Which cover 6 districts Viz. Bagalkot, Dharwad, Belgaum , Bijapur,

Gadag and Haveri.

It is having small showroom at ankola an bijapur to cover other areas, Which are working

under the guidance of Manickbag the main branch. It is using promotional activities such

as periodical advertisement , Offers and insurance, Road shows and demonstrations.

Sales executives are playing an important role in attaining the enquires of their

customers. Since Manickbag is the only big showroom the promotional activities

conducted are not reaching effectively to customer of other districts, It shows that most of

their sales are in Dharwad district simultaneously it is loosing customers in other districts.

Presently they are in:

Hindustan petroleum since 1950

Simpson since 1951

Mico since 1956

Kirloskar Bearing since 1975

TVS Motors since 1979

Sesa goa pig iron cike & coal since 1990

T ATA Motors since 1992

BRANCHES OF MANICKBAG

Head Office: Hubli

Branches: Belgaum, Bijapur, Ankola, and Gulbarga.

SERVICE SETUP: Bagalkot, Bidar, Chikodi

MAN POWER: Workers – 528

Staff - 320



Service - 200

ACHIEVEMENTS:

Best dealership award from TELCO.

Best dealership award from MICO.

Best dealership award from TVS.

ACTIVITIES:

1. Sales of Tata motors cars.

2. Service/repair of all range of Tata cars.

3. Sales of Tata cars spare parts.

ADRESS FOR CONTACT:

Manickbag automobiles pvt. Ltd,

Unit of tata motors ltd,

Vidyanagar P.B.Road

Hubli- 580031

Tel : 0836 2374535 / 2372486

e-mail: [email protected]

INFRASTRUCTURE AVAILABLE:

Cover area 1 acre

Open area 4500 sq feet

No. Of bays more than 50

No. Of operational bays 12

No. Of PDI (pre delivery inspection Bays) 02

No. Of bays foe accident repairs 12

Bays (parking area) 4 acres

No. Of trained mechanics 125

No. Of trained supervisors 06



TWO MAIN DIVISONS IN THE FIRM:

1. Commercial vehicle division.

2. Passenger vehicle division.

DEPARTMENT PROFILE:

There are mainly four departments in manickbag automobiles pvt ltd.

They are

1. Sales department

2. Service department

3. Spares department

4. Account department

1.SALES DEPARMENT:

Sales department is headed by sales manager Mr. Wilson A.M under him

Show in charge Mr. Salikoppa

Asst. sales manager Mr. Anand Barimani & Mr. Karikatti

Finance executive Mr. Ravi Shetti

Sales executive Mr. Anil Hittalmani &

Mr. G.N. Kulakarni

Customer care executive Miss. Savita

2. SERVICE DEPARTMENT:

Mr Mahaveer angadi heads service department and under his guidance.

Service advisor Mr Sunil.Aingad & Mr Sunil Iraddi

& Mr. Sham Shuddin

PDI in Charge Mr. Kalappa

Customer car executive Miss Safena

Denting and Painting in Charge Mr Vonid



3. Spares Department

Mr. Kishore Kurthkoti heads it under his guidance:

Mr. G.M.Hegde

Mr. Akbar

Mr.Vinayak

4. Accounts Department:

Mr. Shindey Maintains all the records

SWOT AnalysisStrengths:

The can ask for test drive

The customers are attended as soon as they come.

The area available for operation is very spacious

They have their own finance.

The dealer’s have high goodwill in the market for service.

The presence of effective flow of communication between the departments of the

Manickbag is the greatest strength, which ensures smooth flow of operations.

Weakness:

Tough competitions from the other companies.

The dealer prefers experience rather than talent.

Diffculty in marketing petrol cars as it is set in minds of public that TATA is for

diesel vehicles.

Opportunities:

It can capture rural areas when they are going to launch their new vehicle.



The dealer can go for diversification

The dealer can conduct exchange promotional activities to increase its sales.

Threats:

Changing market trends

Competition from other models.

Globalization and privatization.

Any sudden changes in the government policy may effect the sales.

New interacts from compitators like price and quality.

Change in the market that is from seller’s market to buyers market.



Research & Development:

Research provides the much-needed inspiration for the birth of new ideas, which in turn

breathes new life into products. World-class automotive research and development are

key factors that contribute to the leadership of the Company.

Engineering, Research, Centre (ERC):

The Research Centre at Jamshedpur regularly upgrades components and aggregates. A

well-equipped torture track enables rigorous and exhaustive testing of modifications

before they are used as regular fitments.

The Engineering Research Centre in Pune was setup in 1966 and is among the finest in

the country. It has been honored with two prestigious awards - 'The DSIR National

Award for R&D Effort in Industry - 1999' and 'National Award for Successful

Commercialisation of Indigenous Technology by an Industrial Concern - 2000.'

Facilities:

Engine Performance

Test Beds

Chassis Dynamometer Emission Lab

Electrodynamic Vibration Shaker Platform

Instrumentation Laboratory

Test Beds:

Tata Motors has 24 engine test beds for engine development. These are fully automated

with computerised data acquisition and logging. They are used to test performance,

endurance, and durability. They are also used in development of components and other

engine aggregates.



The dynamometers ranging from 200 Hp to 500 Hp are capable of looking after all the

existing and future petrol, diesel, and CNG engines of Tata Motors. Three test beds are

equipped with emission analyzers. They are engaged in emission development for Euro

norms. Six test beds are equipped with 'Intake Air Conditioning Systems' to feed

combustion air at ref. temp, pressure and humidity to the engine.

The latest addition is a contemporary "High Dynamic Transient Dynamometer"

(HDTD) installed in December 2000 which permits all 'chassis dynamometer' drive

cycles to be run on it. It has an Emission System, Dynamometer and Software. The

powerful software simulates the driver and all vehicle aggregates like gearbox and drive

train, other than the engine.

Chassis Dynamometer Emission Lab:The ERC has a specialized AVL Zollner

Chassis Dynamometer with a 508mm-twin roller for checking the emission levels of

chassis. It is certified by UTAC, TUV, INTA and ARAI. With a 125 kw generator, it

can cater to the maximum vehicle speed of 210 km/h. Inertia simulation ranges from

567kg to 3000 kg. The Horiba 9000 emission system has separate CVS units for petrol

and diesel.

Electrodynamics Vibration Shaker Platform:

It is used for testing engine components and assemblies against vibrations. It works

with a rated force of 2000 kgf on X, Y, and Z-axis. The maximum displacement is 40

mm and the maximum acceleration is 65g. It has a platform table size of 1000x1000

mm. The whole set-up has a PC based control and automation system.

Instrumentation Laboratory: The 'Instrumentation Laboratory' at ERC Engines is

equipped with a range of instruments to assist engine development. These include data

acquisition systems, air flow meters, blow-by meters, smoke meters, oil consumption

meters, incometer & topometer, piston profile tester, FIP test rig, Swirl test rig, and

many other support equipments to cater to routine engine development activities.



Reducing Emissions:

Durability Testing

Test Tracks

Four Poster Servo-Hydraulic Test Facility

A specialized laboratory has been set up to measure levels of emission of vehicles

using either petrol, diesel or CNG. This laboratory helps Tata Motors achieve fuel

consumption efficiencies that would conform to international standards, under

varying driving cycles. It stands testimony to Tata Motors commitment to help

bring down levels of atmospheric pollution caused by vehicular exhaust.

Test Tracks:

High-speed tracks are specialized tracks for testing endurance of cars and commercial

vehicles. The Tata Motors torture tracks and high-speed tracks in Jamshedpur and Pune

are the only one of their kind

In the country. The torture track has 4 segments. Each segment affords a different type

and level of stress testing for the vehicle chassis and aggregates. The tracks subject the

chassis to shock, twisting, and bending loads. 1000 cycles on this torture track are

equivalent to approximately one and a half lakh kms of running on regular roads. It thus

provides a valid test of chassis and vehicle durability.

Four Poster Servo-Hydraulic Test Facility:



Four Poster Servo-Hydraulic Test Facility consists of four posts for mounting the

vehicle. The vehicle is subjected to vertical motions equivalent to road undulations

similar to actual runs on a test track. These tests conducted in a lab under controlled

conditions are accurate and unaffected by external factors that could hamper testing

activity.

Safety (CRASH TEST FACILITY):

For Tata Motors, safety is of paramount importance. This avenue provides no room for

the slightest margin of error.

Tata Motors ERC is the only high-tech facility in India to evaluate the degree of

passenger safety in the event of any high-speed impact. Through a special crash test

facility. Different types of accidents are simulated; the results analysed, and put to use

in the development of a vehicle that satisfies stringent international safety norms.

Special high-speed cameras record test crashes at the rate of 1000 frames per second.

An accident, for instance, at the speed of 50 kilometers per hour, lasts one eighth of a

second. Thus, 125 frames recorded by these cameras are available for study with the

Minimising Noise (ANECHOIC CHAMBER):

Anechoic chamber is a highly sophisticated noi vibration laboratory, the nerve centre of

which is a vast chamber lined with 88,000 cones projecting at various angles from the

walls and ceiling. It is one of its kind in India and is developed completely with in-

house facilities.

A number of cones, made of glass wool, are covered with fire retardant material and

absorb sound generated within this chamber. There are rubber dampers, and a meter-

thick wall of air surrounds the chamber itself. Designed to achieve 99.5% noise

absorption, the chamber is used to test noise and vibration levels created by vehicles.

For eg. The noise of a door being shut, the click of a switch or an engine being started.



Designing and Styling (CAD CENTRE):

The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest

software. The CAD centre is a vital organ of ERC's Cab Design Section.

CAD designing involves development of vehicle specifications, styling interiors and

exteriors, reviewing the styling from the engineering and aesthetic points of view,

virtual prototyping to check for design acceptability and feasibility of manufacture.

Based on this information, several running prototypes are made and tested. It is only

after all flaws, if any, are corrected using CAD systems, that vehicles are approved for

mass production.

AWARDS:

PCBU bags Handa Golden Key Award

Tata Motors receives Uptime Champion Award 2007

'NDTV Profit' Business Leadership Award:

Tata Motors bags National Award for Excellence in Cost Management:

Tata Motors bags National Award for Excellence in Cost Management...

Tata Motors was awarded four prestigious honours, at the 'CNBC TV18- Autocar Au...

Business Today selects Mr. P.P. Kadle as India's Best CFO in 2005...

Pune Foundry Division bags prestigious Green Foundry Award...

Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...

ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards....


http://www.tatamotors.com/our_world/awards.php?getID=50&action=Pull&







Jamshedpur bags National Energy Conservation Award for the fourth consecutive ye...

Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence...

Tata Motors receives JRD QV awards for Business Excellence...

Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...

TNS Voice of the Customer Award for Indica Diesel...

'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director -...

Tata Motors wins the prestigious 'Corporate Platinum' Award at the India Manuf...

Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility...

Tata Motors CVBU Pune wins National Energy Award...

Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'...

Tata Motors wins the first CSIR Diamond Jubilee Technology Award...

Tata Motors Training Division Wins "Golden Peacock National Training Award 2004"...

TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES...

Tata Indica and Tata Safari EXi win awards...

Tata Motors-Car plant gets two ISO certifications...

Tata Motors bags awards at 14th National Convention of INSAAN...

Indica and Safari win accolades...

TATA MOTORS PUNE AWARDED SECOND PLACE IN NATIONAL LEVEL

COMPETITION IN ENERGY CO...






















Tata Motors Receives "India's Best Employer" Award From The Employe...

Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute...

Tata Motors team wins The Runners Up Position at The Asian Business Simulation C...

THE PRESTIGIOUS BALANCED SCORECARD COLLABORATIVE HALL OF

FAME AWARD.

Tata Motors receives all India trophy for Top Exporters.

Tata Indigo ad campaign wins Effie award.

Golden Peacock Environment Management Award - 2003.

Industry and Technology Award, 2002.

Advertising Awards.

Tata Indigo - Most Exciting New Car of the Year - ICICI Bank & Overdrive Awa.

Tata Engineering - A Socially Responsible Corporate, says TERI .

'Prof. Vasant Rao Rolling Trophy' for Value Engineering - 2002.

Tata Engineering was conferred Bharat Gaurav Puraskar.

Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto Awards .

'Voice of the Customer Award' for 'Best Diesel Small Car' - Tata Indica by NFO A.

India CFO Award 2002.

Tata Engineering bags INSAAN awards.

National Best Training Establishment Award.






















Envirointernational.

Good Corporate Citizen award.

National Award for Successful Commercialisation of Indigenous Technology.

National Award for R&D Efforts.

Regional Top Exporter's Trophy.

Products Of TATA Motors:

Indica V2

Indica V2 Turbo

Indica V2 Xeta

Indica V2 Dicor

Indigo Marine








Indigo CS

Indigo Indigo XL

Fait Palio Stile Multijet



Fait Bravo

Fait 500

Safari Dicor



Sumo grande

TATA Sumo

Trucks: Medium and heavy commercial

Vehicals Intermediate commercial vehicals Light commercial vehicals Small commercial vehicals Tata Novus TL 4x4



Defence Vehicals

Star buses and Globus

Other buses

Latest launch of Tata motors for 2008:

TATA Nano ( worlds cheapest car)



The Nano will be launched in India later in 2008. The car will be available in both

standard and deluxe versions. Both versions will offer a wide range of body colours, and

other accessories so that the car can be customised to an individual's preferences.

Fuel-efficient engine.

Meets all safety requirements .

Environment-friendly.

Tata sumo Grande :

TECHNICAL SPECIFICATIONS & FEATURES

Engine-



Fuel Diesel

Type 2.2L DICOR (Direct Injection Common

Rail) with 16 Valve DOHC, 32 Bit ECU,

Aluminium Cylinder Head and Variable

Geometry Turbocharger

Capacity (cc) 2179

Max. Output (PS) at rpm 120 @ 4000

Max. Torque (Nm) at rpm 250 @ 1500-3000

Weight:

Kerb Weight (Kgs) 1940

Gross Vehicle Weight (Kgs) 2625

Fuel Tank Capacity (Ltrs.): 65

Tata’s compitators in cars, Suv’s and Muv’s :

Mahindra & Mahindra

Maruti Suzuki

Hyundai

Toyota

Ford

Fait



General Motors

Skoda

Honda

Renault

Mitsubishi

Hindustan Motors

ompitator in Mid-size cars:

MODEL COMPANY

Ambassador, Avigo,

Grand.

(Petrol and Diesel

versions)

Hindustan

Motors

Chevrolet Aveo

(Petrol and Diesel

versions)

Genral Motors


http://auto.indiamart.com/cars/chevrolet-aveo/

http://auto.indiamart.com/hindustan-motors/

http://auto.indiamart.com/hindustan-motors/

http://auto.indiamart.com/cars/hm-grand/

http://auto.indiamart.com/cars/ambassador/


Chevrolet Aveo U-

VA

(Petrol and

Diesel

versions)

Chevrolet

Chevrolet Spark

( Only Petrol

version)

Chevrolet

Fiat Palio

(Petrol and Diesel

versions)

Fait India

Fiat Petra

(Petrol and Diesel

versions)

Fait India


http://auto.indiamart.com/cars/fiat-petra/

http://auto.indiamart.com/cars/fiat-palio/

http://auto.indiamart.com/cars/chevrolet-spark/

http://auto.indiamart.com/cars/chevrolet-aveo-u-va/

http://auto.indiamart.com/cars/chevrolet-aveo-u-va/


Ford Ikon

(Only Petrol

Version)

Ford Motors

Ford Fiesta

(Petrol and Diesel

versions)

Ford Motors

Hyundai Accent

(Petrol and Diesel

versions)

Hyundai

Motors

Hyundai Getz Prime

(Petrol and Diesel

versions)

Hyundai

Motors


http://auto.indiamart.com/cars/hyundai-getz/

http://auto.indiamart.com/cars/hyundai-accent/

http://auto.indiamart.com/cars/ford-fiesta/

http://auto.indiamart.com/cars/ford-ikon/


Hyundai Elantra

(Petrol and Diesel

versions)

Hyundai

Motors

Hyundai Santro

(Only Petrol

version)

Hyundai

Motors

Hyundai Verna

(Only Petrol

Version)

Hyundai

Motors

Mahindra Renault

Logan

(Petrol and Diesel

versions)

Mahindra &

Mahindra Co.


http://auto.indiamart.com/mahindra/

http://auto.indiamart.com/mahindra/

http://auto.indiamart.com/cars/mahindra-logan/

http://auto.indiamart.com/cars/mahindra-logan/

http://auto.indiamart.com/cars/hyundai-verna/

http://auto.indiamart.com/cars/santro/

http://auto.indiamart.com/cars/hyundai-elantra/


Maruti Zen Estilo

(Only Petrol

Version)

Maruti WagonR

(Only Petrol

Version)

Maruti Suzuki

India Ltd.

Maruti Esteem

(Petrol and Diesel

versions)

Maruti Suzuki

India Ltd.

Maruti Baleno

(Petrol and Diesel

versions)

Maruti Suzuki

India Ltd.


http://auto.indiamart.com/maruti/


http://auto.indiamart.com/cars/maruti-baleno/



http://auto.indiamart.com/cars/maruti-esteem/



http://auto.indiamart.com/cars/maruti-wagon/

http://auto.indiamart.com/cars/maruti-zen/


Maruti Swift

(Petrol and

Diesel versions)

Maruti Suzuki

India Ltd.

Maruti Suzuki SX4

(Petrol and Diesel

versions)

Maruti Suzuki

India Ltd.

Opel Astra

(Petrol and Diesel

versions)

Genral motors

Opel Corsa

(Petrol and Diesel

versions)

Genral motors


http://auto.indiamart.com/cars/opel-corsa/

http://auto.indiamart.com/cars/astra/



http://auto.indiamart.com/cars/maruti-sx4/



http://auto.indiamart.com/cars/maruti-swift/


San strom

(Only petrol

version)

San Motors



PRODUCT LINE SEGMENT

Product:

Product is anything that can be offered to a market to a market to satisfy a want or need.

Products that are marketed include physical goods, services, experiences, events, persons,

places, properties, organizations, information and ideas.

Product Line:

A group of products with’n a product class that are closely related because they perform a

similar function, are sold to the same customer groups, are marketed through the same

outlets or channels, or fall with’n given price ranges. A product line may be composed of

different brands or a single family brand or individual brand that has been line extended.

Example: Life Insurance

In offering a product line companies normally develop a basic platform and modules that

can be added to meet different customer requirements. Car manufacturers around a basic

platform. Homebuilders show a model home to which additional features can be added.

This modular enables the company to offer variety while lowering production costs.

Product line managers need to know the sales and profits of each item in their line in

order to determine whish item to build, maintain, harvest or divest. They also need to

understant each product lines market profile.

Product Line Management:

Product line management is about controlling the definition and release planning for a

product line. Market requirements, development capacities, strategic corporate decisions

are all harmonized, and the product's chances on the market are evaluated in a business

plan.

Product line management is something we at PSE have come to learn how to do in

practice with our own products and a number of our clients' products. We are fully

familiar with the complex interdependencies between the 4 Ps in marketing product,



price, place, and promotion. And, especially when it comes to product and

communication policies, we are able to use our market knowledge to maximal effect.

In this study, we investigate the effects of state dependence on market structure using

scanner panel data, specifically addressing the four issues raised above. In other words,

we seek to understand market structure – conceptualized in terms of pairwise product-

level competition – using a automobile choice model accommodating four effects of

known importance:

(1) marketing mix variables,

(2) Inertia and/or variety-seeking

(3) unobserved heterogeneity

(4) product attributes.

Given these objectives, we start

from the parsimonious stochastic choice mode is modifying it to accommodate

marketing variables and inertia. We then allow for unobserved heterogeneity across

households and, lastly, operationalize inter-product similarity to be a function of

observed product attributes. Two key findings emerging from a formal analysis of two

packaged goods categories are summarized below.

• Accommodating the effects of inertia, marketing variables and unobserved

heterogeneity is critical to obtaining correct inferences about market structure,

particularly so when available scanner panel data offer no evidence of variety-seeking

behavior. For example, a model which allows for variety-seeking, but which ignores the

other three effects, may incorrectly conclude that variety-seeking drives market

structure even when it does not.

• When product positions are characterized in terms of inter-product similarity measures,

operational-zing these measures in terms of observed product attributes (information that

is generally available in existing scanner panel data) not only gives excellent “face



validity” to the model, but also fits the data better than a model which ignores such

attribute information in lieu of unobserved attributes.

A previous study that has investigated market structure after allowing for variety-seeking

and the four additional effects accounted for here (inertia, marketing variables,

unobserved heterogeneity and product attributes). Our study differs, however

operationalizes inter product similarities (that drive state dependence) along

unobservable, rather than observable, product attributes.

2. To the extent that practitioners wish to understand market structure in terms of

attributes that they incorporate into, and use as the basis of both differentiating and

advertising, their products, a legitimate managerial question concerns whether important

effects due to observable attributes indeed exist. A natural question that would then arise

is whether one can compare the results from the proposed



DIFFERENTATION STRATGIES EMPLOYED BY AUTOMAKER MID-

SEGMENT CARS :

In marketing, differentiation is the process of distinguishing the differences of a

product or offering from others, to make it more attractive to a particular target market.

This involves differentiating it from competitors' products as well as one's own product

offerings.In Simple words Products are differentiated when the products of different

companies are not perfect substitutes -- instead, "every company has a monopoly of its

own product." Nevertheless, companies may compete by changing the characteristics of

the product they sell. The idea is not necessarily to make a better product than the

competitor, just different -- to appeal to a different "market niche."

Differentiation is a source of competitive advantage. Although research in a niche market

may result in changing your product in order to improve differentiation, the changes

themselves are not differentiation. Marketing or product differentiation is the process of

describing the differences between products or services, or the resulting list of

differences. This is done in order to demonstrate the unique aspects of your product and

create a sense of value. Marketing textbooks are firm on the point that any differentiation

must be valued by buyers . The term unique selling proposition refers to advertising to

communicate a differentiate their product.

The brand differences are usually minor; they can be merely a difference in packaging or

an advertising theme. The physical product need not change, but it could. Differentiation

is due to buyers perceiving a difference, hence causes of differentiation may be functional

aspects of the product or service, how it is distributed and marketed, or who buys it. The

major sources of product differentiation are as follows.

I.) Differences in quality which are usually accompanied by differences in price

Competition in Quality- In some industries, there is a very hot competition to introduce

a product that is superior to rival products. This form of competition has a good

reputation but it can certainly be overdone and may be overrated.


http://en.wikipedia.org/wiki/Quality

http://en.wikipedia.org/wiki/Advertising

http://en.wikipedia.org/wiki/Packaging

http://en.wikipedia.org/wiki/Unique_selling_proposition

http://en.wikipedia.org/wiki/Niche_market

http://en.wikipedia.org/wiki/Competition

http://en.wikipedia.org/wiki/Target_market


http://en.wikipedia.org/wiki/Marketing


Competition in quality lends itself to "horse races," in which only the winner gets any

profit at all, and recent research indicates that these "winner take all" competitions tend to

lead to overinvestment and waste of resources. The constant upgrading of computer

software may be an example. We will take a closer look at "horse race" competition in a

later chapter. In any event, to much of a good thing that is, spending too much on a good

thing can always change it into a bad thing.

On the other hand, quality improvement makes consumers better off in an obvious and

probably pretty major way, so competition in quality is at worst a mixed bag.

Many different techniques and concepts have evolved to improve product or service

quality, including SPC, Zero Defects, Six Sigma, Malcolm Baldrige National Quality

Award, quality circles, TQM, Theory of Constraints (TOC),Quality Management

Systems (ISO 9000 and others) and continuous improvement.

The meaning for the term quality has developed over time. Various interpretations are

given below:

1. ISO 9000 - "Degree to which a set of inherent characteristic fulfills requirements"

2. Philip B. Crosby in the 1980s- "Conformance to requirements". The difficulty

with this is that the requirements may not fully represent customer expectations;

Crosby treats this as a separate problem.

3. (Joseph M. Juran).- "Fitness for use". Fitness is defined by the customer.

4. (Noriaki Kano and others)- A two-dimensional model of quality. The quality has

two dimensions: "must-be quality" and "attractive quality". The former is near to

the "fitness for use" and the latter is what the customer would love, but has not yet

thought about. Supporters characterize this model more succinctly as: "Products

and services that meet or exceed customers' expectations".

5. Gerald M. Weinberg - "Value to some person".

6. W. Edwards Deming - "Quality and the Required Style of Management" . "Costs

go down and productivity goes up, as improvement of quality is accomplished by

better management of design, engineering, testing and by improvement of


http://en.wikipedia.org/wiki/W._Edwards_Deming

http://en.wikipedia.org/wiki/Value_theory

http://en.wikipedia.org/wiki/Gerald_M._Weinberg

http://en.wikipedia.org/wiki/Service_(economics)


http://en.wikipedia.org/wiki/Noriaki_Kano

http://en.wikipedia.org/wiki/Dr._Joseph_Moses_Juran

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/1980s

http://en.wikipedia.org/wiki/Philip_B._Crosby

http://en.wikipedia.org/wiki/ISO_9000

http://en.wikipedia.org/wiki/Continuous_improvement

http://en.wikipedia.org/wiki/ISO_9000

http://en.wikipedia.org/wiki/Quality_Management_System

http://en.wikipedia.org/wiki/Quality_Management_System

http://en.wikipedia.org/wiki/Theory_of_Constraints

http://en.wikipedia.org/wiki/TQM

http://en.wikipedia.org/wiki/Quality_circle

http://en.wikipedia.org/wiki/Six_Sigma

http://en.wikipedia.org/wiki/Zero_Defects

http://en.wikipedia.org/wiki/Statistical_process_control


processes. Better quality at lower price has a chance to capture a market. Cutting

costs without improvement of quality is futile."

7. (Genichi Taguchi). Taguchi's definition of quality is based on a more

comprehensive view of the production system, and he relates Quality (or, more

precisely, the lack of it) to "The loss a product imposes on society after it is

shipped".

II.)Differences in functional features or design

Product design can be defined as the idea generation, concept development, testing and

manufacturing or implementation of a physical object . Product Designers conceptualize

and evaluate ideas, making them tangible through products in a more systematic

approach. The role of a product designer encompasses many characteristics of the

marketing manager, product manager, industrial designer and design engineer.

The term is sometimes confused with industrial design, which defines the field of a

broader spectrum of design activities, such as service design, systems design, interaction

design as well as product design The role of the product designer combines art, science

and technology to create tangible three-dimensional goods. This evolving role has been

facilitated by digital tools that allow designers to communicate, visualize and analyze

ideas in a way that would have taken greater manpower in the past.

III.) Ignorance of buyers regarding the essential characteristics and qualities of goods

they are purchasing

IV.) Sales promotion activities of sellers and, in particular, advertising

Promotion involves disseminating information about a product, product line, brand, or

company. It is one of the four key aspects of the marketing mix. The other three elements

are product management, pricing, and distribution.


http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Pricing

http://en.wikipedia.org/wiki/Product_management

http://en.wikipedia.org/wiki/Marketing_mix

http://en.wikipedia.org/wiki/Brand

http://en.wikipedia.org/wiki/Product_line


http://en.wikipedia.org/wiki/Promotion_(marketing)

http://en.wikipedia.org/wiki/Ignorance

http://en.wikipedia.org/wiki/Interaction_design

http://en.wikipedia.org/wiki/Interaction_design

http://en.wikipedia.org/wiki/Systems_design

http://en.wikipedia.org/wiki/Service_design

http://en.wikipedia.org/wiki/Industrial_design

http://en.wikipedia.org/wiki/Product_management

http://en.wikipedia.org/wiki/Manufacturing

http://en.wikipedia.org/wiki/Test_method

http://en.wikipedia.org/wiki/Concept

http://en.wikipedia.org/wiki/Idea

http://en.wikipedia.org/wiki/Genichi_Taguchi


Product information :

Any product that provides information that the purchaser is seeking. It could be a hard-

bound book, ebook, audio, video or combination of these.

Brand awareness:

The likelihood that consumers recognize the existence and availability of a company's

product or service. Creating brand awareness is one of the key steps in promoting a

product.

Brand awareness is an important way of promoting commodity-related products. This is

because for these products, there are very few factors that differentiate one product from

its competitors. Therefore, the product that maintains the highest brand awareness

compared to its competitors will usually get the most sales.

Promotion is generally sub-divided in to the many parts:

Above the line promotion : Promotion in the media e.g. TV, radio, newspapers,

Internet in which the advertiser pays an advertising agency to place the ad .

Product Pricing:

Definition: To establish a selling price for a product

Pricing Basics:

To price products, you need to get familiar with pricing structures, especially the

difference between margin and markup. As mentioned, every product must be priced to

cover its production or wholesale cost, freight charges, a proportionate share of overhead

(fixed and variable operating expenses), and a reasonable profit. Factors such as high

overhead (particularly when renting in prime mall or shopping center locations),

unpredictable insurance rates, shrinkage (shoplifting, employee or other theft, shippers'


http://en.wikipedia.org/wiki/Advertisement

http://en.wikipedia.org/wiki/Advertising_agency

http://en.wikipedia.org/wiki/Advertiser

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Newspapers

http://en.wikipedia.org/wiki/Radio

http://en.wikipedia.org/wiki/TV

http://en.wikipedia.org/wiki/Mass_media

http://en.wikipedia.org/wiki/Above_the_line_promotion


mistakes), seasonality, shifts in wholesale or raw material, increases in product costs and

freight expenses, and sales or discounts will all affect the final pricing.

All prices must cover costs and profits.

The most effective way to lower prices is to lower costs.

Review prices frequently to assure that they reflect the dynamics of cost, market

demand, response to the competition, and profit objectives.

Prices must be established to assure sales.

Before setting a price for your product, you have to know the costs of running your

business. If the price for your product or service doesn't cover costs, your cash flow will

be cumulatively negative, you'll exhaust your financial resources, and your business will

ultimately fail.

To determine how much it costs to run your business, include property and/or equipment

leases, loan repayments, inventory, utilities, financing costs, and

salaries/wages/commissions. Don't forget to add the costs of markdowns, shortages,

damaged merchandise, employee discounts, cost of goods sold, and desired profits to

your list of operating expenses.

Most important is to add profit in your calculation of costs. Treat profit as a fixed cost,

like a loan payment or payroll, since none of us is in business to break even.

Because pricing decisions require time and market research, the strategy of many

business owners is to set prices once and "hope for the best." However, such a policy

risks profits that are elusive or not as high as they could be.

When is the right time to review your prices, Do so if:

You introduce a new product or product line;

Your costs change;

You decide to enter a new market;

Your competitors change their prices;



The economy experiences either inflation or recession;

Your sales strategy changes; or

Your customers are making more money because of your product or service.

a.) Informational Advertising :

In a P-competitive market, there is no advertising, because there is no need to advertise --

the firm can sell its profit-maximizing output at the market price.But in the real world,

advertising is a very major competitive strategy. When the aim of the advertising is to

give people information about the availability, characteristics and prices of goods, we call

it "informational advertising." This sort of advertising increases the consumer's range of

choice and may improve the quality of the decisions consumers make. It can also

contribute to the effectiveness of price competition, so (in some markets) it may

complement price competition and bring the market closer to the supply-and-demand

outcome than it otherwise would be.

The purpose of cutting your price is to attract more customers, after all. If nobody knows

about the price cut, it will be less effective, so why bother? Conversely, an advertised

price cut can be the most powerful form of price competition. Some "professional ethics"

laws have prohibited physicians and lawyers from advertising, on the grounds that such

advertising would be inconsistent with professionalism. In recent years, as part of the

trend toward increased reliance on markets in modern economies, those laws have been

repealed in some jurisdictions. The repeal does seem to lead to increased price

competition.

All the same, like other forms of nonprice competition, economists regard informational

advertising as something of a mixed bag:

It gives people information they might lack, which is good, but

It can be overdone, spending too much on advertising and driving prices up,

which is not so good.



b.) Persuasive Advertising:

The purpose of persuasive advertising is to shift the utility functions of the customers,

thus to shift their demand curves in favor of the good being advertised. Since we judge

consumers' benefits in terms of given consumer utility functions, it is hard to say if

consumers benefit or lose -- so persuasive advertising looks like spending money without

making consumers any better off, and many economists regard that as a negative.

We expect that both forms of advertising will be especially common in oligopolies and

whenever products are differentiated, as in monopolistic competition. Monopolies, too,

may find it profitable to advertise.

Below the line promotion . All other promotion. Much of this is intended to be

subtle enough that the consumer is unaware that promotion is taking place. E.g.

sponsorship, product placement, endorsements, sales promotion, merchandising, direct

mail, personal selling, public relations, trade shows

The specification of these four variables creates a promotional mix or promotional plan.

A promotional mix specifies how much attention to pay to each of the four subcategories,

and how much money to budget for each. A promotional plan can have a wide range of

objectives, including: sales increases, new product acceptance, creation of brand equity,

positioning, competitive retaliations, or creation of a corporate image.

V.) Differences in availability (e.g. timing and location).

The objective of differentiation is to develop a position that potential customers see as

unique.

Differentiation primarily impacts performance through reducing directness of

competition: As the product becomes more different, categorization becomes more

difficult and hence draws fewer comparisons with its competition. A successful


http://en.wikipedia.org/wiki/Positioning_(marketing)

http://en.wikipedia.org/wiki/Objective_(goal)

http://en.wikipedia.org/wiki/Corporate_image

http://en.wikipedia.org/wiki/Positioning_(marketing)

http://en.wikipedia.org/wiki/Brand_equity

http://en.wikipedia.org/wiki/Promotional_mix

http://en.wikipedia.org/wiki/Trade_shows

http://en.wikipedia.org/wiki/Public_relations

http://en.wikipedia.org/wiki/Direct_mail

http://en.wikipedia.org/wiki/Direct_mail

http://en.wikipedia.org/wiki/Merchandising

http://en.wikipedia.org/wiki/Sales_promotion

http://en.wikipedia.org/wiki/Product_placement

http://en.wikipedia.org/wiki/Sponsorship

http://en.wikipedia.org/wiki/Consumer

http://en.wikipedia.org/wiki/Below_the_line_promotion


differentiation strategy will move your product from competing based primarily on price

to competing on non-price factors such as product characteristics, distribution strategy, or

promotional variables.

Most people would say that the implication of differentiation is the possibility of

charging a price premium; however, this is a gross simplification. If customers value the

firm's offer, they will be less sensitive to aspects of competing offers; price may not be

one of these aspects. Differentiation makes customers in a given segment have a lower

sensitivity to other features (non-price) of the product .

Further applications:

Differentiation of product explains and resolves some other paradoxical results that

obtain when products are assumed to be perfect substitutes. The Diamond Paradox holds

that the monopoly price prevails in the presence of small search costs even with many

firms. Suppose consumers expected the monopoly price to be charged everywhere. Any

firm pricing lower can raise its price and lose no consumers: a lower price attracts no

consumers from other firms because a lower price is not expected. Any (rationally

expected) price below the monopoly one is not an equilibrium because a firm can raise its

price by an amount up to the search cost without losing any consumer who encounters it

first. There is thus a striking discontinuity between the Bertrand and Diamond paradoxes

as the search costs go from zero to a small positive value. Product differentiation

smoothes the transition by allowing the consumers to shop for attributes other than purely

price. A consumer may indeed find the price she expected at the first store sampled but

still search further if she expects to find a better match. Her continued searching

effectively brings firms into competition with each other. Firms therefore reduce prices

to retain consumers who search for better matches.

The existence of a (pure strategy) price equilibrium in the original Hotelling model can

be restored (through restoring profit function quasiconcavity) if there is sufficient non-

locational product differentiation (through idiosyncratic preferences for products). This


http://en.wikipedia.org/wiki/Promotion_(marketing)

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Price


mechanism can restore the Principle of Minimum Differentiation in locations, even with

endogenous prices.

The standard Bertrand-Edgeworth pricing problem treats capacity constraints and, with

homogenous products, has only mixed strategy equilibria. With sufficient product

heterogeneity, pure strategy equilibria re-emerge since the benefits from undercutting are

reduced. Likewise, standard models of positive network externalities typically exhibit

multiple equilibria or no pure strategy equilibria. Unique pure strategy equilibria result

with enough differentiation of products.

In International Trade, product differentiation explains the empirical paradox of intra-

industry trade; much bilateral trade is in the same product class. Furthermore, product

differentiation is a source of gains from trade (in addition to the traditional comparative

advantage in production and factor difference reasons) because of access to larger

markets supporting more variety. Endogenous growth theory relies on product

differentiation (typically with CES preferences or “quality ladders” based on vertical

differentiation) to rationalize continued Research and Development of new varieties. It is

also a predominant feature as an agglomerative force in recent models of New Economic

Geography. In macroeconomics, product differentiation models have been used to

introduce imperfect competition. This is useful for providing micro-underpinnings to

New Keynesian analysis. For example, in conjunction with “menu costs” to switching

prices, it gives rise to real effects to monetary policy.



Tata’s mid segment car

Tata indica:

Mid Size cars: A Mid Size car is referred to as an automobile with a size between that of

compact full size cars. The price range of mid size cars lies between Rs 3 to 8 Lakhs. The

mid size cars have the capacity to carry 4 passengers , 2 adults and 2 children’s.

The credit of manufacturing of these cars goes to companies like- Fiat India, Ford,

General Motors, Hindustan Motors, Hyundai motors, Maruti Udyog, San Motors and

Tata Motors. While the companies like- Ford, Hyundai, General Motors and Mahindra &

Mahindra are yet to launch their models under this segment. This model basically target

executive class.

Year 1995- In September 1995, Ratan Tata, Chairman of Tata Motors, had a dream. A

dream he believed he shared with every Indian. "We'll have a car with the Zen's size, the

Ambassador's internal dimensions, and the price of a Maruti 800”. It took an Indian to

understand that the average (and not large) Indian family consisted of five members, that

a rupee saved was a rupee earned, and that Indian highways called for a really sturdy

car body.

Differentiation Strategies applied by Tata motors:

About indica car- Tata indica is the fulfillment of vision to develop and produce an

INDIAN car that would be as contemporary and modern as the worlds best in its class,

would set the standards for interior space and value for money. The tata indica has been

designed with inputs from leading Italian design house and has been periodically updated

with exterior and interior facilities. The tata indica is available in both diesel and petrol

engine version.



Year 2006- Tata Motors introduces The Xeta – The Cure For The Common Car. Its 1.4

litre extra fuel Efficient Torque Advantage (XETA) petrol engine delivers a frugal fuel

consumption at 14 Kmpl*. Without any compromise in power and torque, which at 70 PS

and 12.4 kgm, make every drive a thrill.

Year 2005- In November 2005 Indica V2 Turbo was launched.It is the only car in the B

segment to offer a Turbo charger. The car features a Turbo diesel engine that delivers an

improved top speed and an enhanced output of 68PS @ 4500 rpm.

Year 2004- In November 2005 Indica V2 Turbo was launched.It is the only car in the B

segment to offer a Turbo charger. The car features a Turbo diesel engine that delivers an

improved top speed and an enhanced output of 68PS @ 4500 rpm.

Year 2002- Year 2002 saw the Indica V2 complying with the first offset crash test. Major

improvements were also made to the air conditioning system and braking mechanisms, as

well as the body reinforcements.

Year 2001- In 2001, the Indica V2 became the fastest-selling automobile in Indian history

when it chalked sales of 100,000 in less than 18 months. February 2001 saw the next

stage in the evolution of the Indica V2. A car that embodied everything the Indica V2 had

with several added features like a SuperDrive Engine, BlockShock Absorbers, a

SmoothRide Suspension, EasyShift Gears and WideTread Tyres. It married the power

and comfort of a large car with the easy maneouverability of a small one. Taking off on

the success of the Indica V2 diesel, the Indica V2 Petrol was launched in September

2001. The state-of-the-art technology combined the features of the Indica V2 Diesel with

the smoothness of petrol

Year 1998- In December 1998, the dream came true. And it was only fitting that a car

built by Indians for Indians was called Indica. It was the first car that seriously took all

Indian sensibilities including those on safety into consideration. The car was tested at



Tata Motors’ crash test facility (India’s first and only), which has been accredited by

international agencies.

The TATA Indica is the only Indian mid-segment car which has more than Four models

and with’n four models many versions are available:

Style:

1 BODy coloured bumper

2 Body colourd rear view mirrors and door handels.

3. smiling grills

4. adjustable head restraints for front seats

5 high mounted bison tail lamp cluster.

6. rear spoiler.

7 New cubic printed console.

8 stylish upholstery

9 soft feel four spoke steering wheel

10 alloy wheels

Safety:

1 Abs with ebd(electronic brake-force distribution)

2 Airbags- driver and passenger

3 Front passenger airbag deactivation

4 Remote central locking

5 Anti-theft device-immobilizer, ignition-cum-steering lock.

6 shatter resistant windshield glass

7 front and rear fog lamps

8 rear wiper with wash/wipe and defogger

9 child safety lock on rear doors

10 collapsible steering column



convinence:

1. power windows, front and rear

2. spot reading lamps and cabin lamps

3. remote release for fuel lid latch and tailgate latch

4. vanity mirrors on sun-visor for driver and co-driver.

5. internal antenna

Comfort:

1. power steering

2. air-conditioning, heating and demisting

3. independent front and rear suspension for enchanced ride comfort

colures:

1. mint white

2. arctic silver

3. carbon black

4. salsa red

5. odyssey blue

6. mica grey

7. Burgundy royale

8. sparkling gold

9. pastel green



10. cosmic blue

Models Starting Price From in Rs

Tata Indica V2 Xeta 289446- 319450

Tata Indicab 352931, 345222

Tata Indica V2 391340- 411776

Tata Indica V2 Turbo 430289-530140

Technical specification:

1.) Tata Indica V2 Xeta :

Versions Showroom Price IN Rs.

Tata Indica V2 Xeta 1.2 GL - BS III

1193 cc, Petrol, Manual transmission, 5

seater

2,89,446

Tata Indica V2 Xeta 1.2 GLE - BS III


seater

319450

Tata Indica V2 Xeta 1.2 GLS - BS III

1193 cc, Petrol, Manual transmission, 5 340280


http://www.carwale.com/Research/CarDetails-car-1175.html



http://www.carwale.com/Research/BrowseCarsByVersion-model-119.html







seater

Tata Indica V2 Xeta 1.2 GLG - BS III


seater

365896

Tata Indica V2 Xeta GLX - BS III


seater

410841

Specs Availability

Overall Length 3675 mm

Overall Width 1665 mm

Overall Height 1485 mm

Kerb Weight 995 kg

Mileage (Overall) 11.9 km/liter

Seating Capacity (person) 5 person

No of Doors 5 door

Displacement (cc) 1396 cc

Power 70 PS @ 4800 rpm

Torque 122 Nm @ 2600 rpm

Transmission Type Manual

Gears/Speeds 5 Gears

Minimum Turning Radius 4.9 meter

Tyres 165 x 65 R13 Radial

2.) Tata Indicab :






Versions Showroom Price

Tata Indicab DLE- BS III

1405 cc, Diesel, Manual transmission, 5 seater 382909

Tata Indicab DLS - BS III

1405 cc, Diesel, Manual transmission, 5 seater

402495

Specs Availability




Kerb Weight 995 kg



No of Doors 5 door







Tyres 165/65R13 Radial





3.) Tata Indica V2 :


Tata Indica V2 DLE-BS III


Tata Indica V2 DLS-BS III


Tata Indica V2 DLG DiCOR - BS III


Specs Availability




Kerb Weight 995 kg









4.) Tata Indica V2 Turbo :









Tata Indica V2 Turbo DLS


Tata Indica V2 Turbo DLG


Tata Indica V2 Turbo DLX


Tata Indica V2 Turbo DLX - ABS & Airbags


Specs Availability




Kerb Weight 1050 kg







The services, attractive discounts and special offers:







Gold club membership- Excellence boundless, over time, becomes a habit. It is not

something one aspires for, but rather the way one lives, and thinks. And if you are a Tata

Motors customer, it is the way you drive.

Having understood you passion for excellence, we at Tata Motors, would like to offer

you the Tata Motors Gold Club membership plan, for all your servicing needs and

requirements.

It offers you the following:

This privileged membership offers you a bouquet of free services, attractive discounts

and special offers, over a 2 year membership period.

You shall be entitled for priority service at the Dealer / Tata Authorised

Service Centre workshop, where you have registered for the membership. No prior

appointment shall be required .

Gold Club membership and avail of the special price of Rs 499/- as against the regular

price of Rs 999/- . And you can ensure quality service for your car for a full 2 year.

Tata Provides Protection service:

It has been objective to introduce quality products and treatments which you can avail off

during you vehicle ownership period. Towards fulfilling these objective, we are pleased

to inform you that Tata have tied up with M/s Eftec Shroff (Dinitrol), M/s Opulent

Waxoyl, M/s 3M India Ltd, M/s Würth for Anti Rust / Sound Deadening / Engine

Waxing treatment.



Anti Rust Treatments shall protect your car from Corrosion thereby increasing safety

during your handling of the car and also increasing the life of the car. Tata are giving

below some frequently asked questions, which you may have when going in for Anti

Rust Treatment.

Under-coatings:

Under-coatings are chemical compounds usually applied to the undercarriage of a

motor vehicle,

hence the name

Under-coatings may also be applied to other areas such as the trunk, wheel wells,

etc . Areas that shall be covered under Anti Rust treatments:

Bonnet Front wings

Rear Wings Rear Wings



Boot Lid Door

Door Sills

Under Body, Side Members and Cross Members

Anti Rust Treatment during the service at low Price:



Vehicle Treatment type Customer Price

Tata Indica Full Body Anti rust treatment 3750

Tata Indica Only underbody treatment 2530

Tata Indica Internal Panel Protection 1530

Tata Indigo / Marina Full Body Anti rust treatment 4050

Tata Indigo / Marina Only underbody treatment 3050

Tata Indigo / Marina Internal Panel Protection 1800

Tata Sumo / Safari Full Body Anti rust treatment 4500

Tata Sumo / Safari Only underbody treatment 3050

Other Benefits-

Upto 60 months warranty & upto 10 free checkups available for Underbody Treatments.

Sound Deadening Pads-

Door vibration deadeners - These pads when stuck on the insides of the sheet metal

increase sheet metal rigidity, reduce vibrations and increase riding comfort.

Engine Wax Treatment:

Engine Wax is a beige coloured transparent lacquer coating on the engine compartment.

Its features are:

Corrosion Prevention for the Engine compartment

Neat, Clean and New Look to Engine compartment



No effect on MPFI vehicles

Engine wax can withstand upto 200 degrees temp

No need of cleaning the engine compartment with diesel once engine wax is sprayed

Vehical Interior and Exterior enrichment-

Tata has been introduce quality products and treatments which you can avail off during

your vehicle ownership period. Towards fulfilling these objectives, we are pleased to

inform you that Tata has tied up with M/s 3M India Ltd, M/s Opulent Waxoyl & M/s

Würth for Vehicle Interior / Exterior Enrichment programs.

These treatments shall make your car look new and also shall protect your car paint from

getting faded. It shall protect your car interior like seats from stains which may happen on

account of spill and give a clean look to your vehicle interior.

We are giving below some frequently asked questions which you may have when going

in for vehicle interior / exterior enrichment program.The treatment involves cleaning and

dressing of ALL parts of the exposed interiors.

Tata Empowering Programe:

Tata’s would like to assure you that it is now our never-ending responsibility and

endeavour to ensure customers expectations are met during our long association with us.

As part of our initiative of building close relationship with customer and giving them an

opportunity to avail maximum benefits whenever they visit our authorized workshops, we

are delighted to welcome you to Tata Empower Program.

Tata Empower Program which shall help customer to understand the benefits of joining

this program.

Driving tips through empower programe for



Better fuel economy

Driving under Adverse conditions

Driving Safety tips

TATA motors has differentiated his compotators by participating in the International auto

shows:

1.) Geneva Motor show- 1999, 2003, 2005 2006, 2007 and 2008

2.) Auto Africa Motor Show – 2004

3.) Italy – Bologna Motor Show – 2005

Geneva Motor show- 2008

Tata Motors today presented at the 78th Geneva Motor Show the Tata Nano, the People’s

Car, and three other vehicles, the new generation Indica, the new Safari DICOR 2.2 VTT

and the Xenon.

The Nano will first be launched in India later in 2008. The new generation Indica will be

launched in the latter part of 2008 in international markets. The Safari DICOR 2.2 VTT

and the Xenon have just been introduced in select markets.

Speaking on the occasion at the Geneva Motor Show, Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors said, “1998, when we displayed the Indica at Geneva, marked our entry into passenger cars. The last decade has been a period of significant development in Tata Motors’ capabilities. The display of the Nano, which is a first for the global automobile industry, and the new generation Indica signifies this in-house progression.”


http://www.customersupport.tatamotors.com/healthy_ride/#safety

http://www.customersupport.tatamotors.com/healthy_ride/#adverse

http://www.customersupport.tatamotors.com/healthy_ride/#fuel


Geneva Motor Show 2007:

TATA Motors, India's largest automobile company, and the only Indian automobile

company to participate in the Geneva Auto Show regularly for the last 10 years, today

unveiled the TATA Elegante, a sedan based on an all-new platform.

Speaking on the occasion, Mr. Ratan N. TATA, Chairman of the TATA Group, said,

"This is the 10th year of our participation in the prestigious Geneva Auto Show, since

1998 when we unveiled the TATA Indica. In the past decade, TATA Motors has

developed a portfolio of cars, enriched with contemporary features. Several of the design

cues of the TATA Elegante are incorporated in the forthcoming generation of TATA

Indica and TATA Indigo cars."

The TATA Elegante, larger than the current TATA Indigo Sedan, is conceptualized to

incorporate 4 cylinder transverse petrol and diesel engines from 1.4 liters through to 2

liters and a compact V6 petrol power unit. Common rail direct injection turbo diesel

engines with variable valve timing and capabilities to comply with Euro V emissions

norms will also be available. Power varies from 90 to 200 PS with torque of up to 280

Nm. Transmission options include 6 speed manual and automatic gearboxes.

Besides meeting all European safety, crash-worthiness and emission standards, the TATA

Elegante's features include satellite navigation system, cruise control, integrated blue



tooth compatibility, heated mirrors, rain sensor, front and rear parking sensors, and many

other contemporary features.

TATA is also displaying a redesigned TATA Pick Up which is fitted with a 2.2 liter 140

PS common rail direct injection Euro IV compliant diesel engine. With superior styling

and comfort features as well as safety features such as ABS and airbags, this is a versatile

pick up truck suited for business as well as leisure applications. It is offered in single

cabin, double cabin and space cabin versions in 4x2 as well as 4x4 configurations.

Superior fuel mileage and better payload capacity make it a profitable choice for

commercial and personal usage. While continuing to be manufactured in India, the TATA

Pick Up will also be manufactured in Thailand and will be marketed in TATA's existing

European, Asean and African markets. TATA and the Fiat Group are also actively

exploring the manufacture and marketing of this vehicle in Latin America..

Also on display, are the latest versions of TATA Indica hatchback, the TATA Indigo SW

station wagon and the TATA Safari DiCOR sports utility vehicle. The TATA range has

been selling in select European markets since 1993 and has continued to gain increasing

response year after year.

Moscow Motor Show 2006-



Tata Motors, India's largest automobile company, plans to enter the Russian automobile

Tata Motors, India's largest automobile company, plans to enter the Russian automobile

market with a diverse range of small, medium and heavy trucks and buses. These products,

designed specifically to cater to the Russian market, will be introduced over the next three

years. Initially, the key offering will be the Light Commercial Vehicle (LCV) range, where

Tata Motors has a strong presence in international markets like South Africa and the

Middle East.

For the first time, at the Moscow Motor Show this year, Tata Motors is also showcasing

its passenger car range.

Tata Motors hopes to sell about 6000 commercial vehicle units/year, over the next three

years, and thereafter increase growth through new product introductions. The key focus

markets for the company will be Moscow, St. Petersburg, Svedolosk and Volgograd.

Mr P G Shankar, Head - International Business, Commercial Vehicle Business Unit, Tata

Motors, says, "Russia is a focus market in Tata Motors' global growth strategy. We have

decided to enter Russia not just to sell our vehicles, but also to grow with our customers

by offering the best value proposition, through both products and services. We are also

exploring opportunities for investments in product development, marketing and even

manufacturing. We have a long term vision and Tata Motors is here to stay in Russia."

Mr Divyendu Kumar, Head - International Business, Passenger Car Business Unit, Tata

Motors, says, "Russia is a market of strategic importance to Tata Motors. We are actively

exploring the firming up of our plans to address this market not just by selling our

products here but also by participating in local industrial and economic enterprises on a

long term basis. For the first time at the Show, Tata Motors is showcasing its passenger

car range comprising the Indica Hatchback, Indigo Sedan and Indigo Station Wagon.

Apart from being among the largest selling passenger car models in India, these models

are well-established in chosen overseas markets and are well on the way to establishing

themselves in European countries as well.''



Also on display are two concept cars - Tata Crossover, a 'crossover' vehicle concept, and

Tata Cliff rider, a Multi-Utility Lifestyle Vehicle' concept.

In commercial vehicles, Tata Motors is displaying the diversity and range of its products.

On display are the LPT 613 and LPT 1618 trucks, the Telco line pick-up and the Novus

tractor , which is being displayed for the first time in Russia.

The vehicles Tata Motors currently sells in Russia are, LPT 613 trucks, LP 613 buses and

Telco line pickups, which are supplied in SKD (Semi Knocked Down) and CKD

(Completely Knocked Down) condition. Tata vehicles are sold through its three

distributors -- trucks are sold through Automobile & Motors of Ural (Amur) -

Ekaterinburg; pick-ups through Samotlar -NN - Nizhniy Novgorod; and buses through

Volzhanin - Vogograd and Samotlar - NN.





The following factors that effect on consumer decision making.

Model:

The model is the outer look of the vehicle, which plays a vital role in consumer’s

decision making while buying the car. Thus there is a alteration in the outer look of

model at every particular point of time.

Price:

The price of the car very much matters while consumers decision making while buying

the car. It must be such a way that it should give the better then its compotators. Thus the

price must be competitive within the particular segment.

Delivery period:

The delivery period is the delivery of the vehicle from the day of booking the vehicle. In

the present days customers wont wait for many days for the delivery thus there is

competition like on time delivery.

Vehicle Life:

Vehicle life is very important , it depends upon the type of the metal used for the

construction of the vehicle body, which should be resistant to the rainy season( anti rust

coating).

Vehicle power:

Vehicle power is technically known as the engine’s displacement (cc), power or torque ,

which should be powerful to carry 5 people with max speed of of 120kmph.



After sales service:

The service’s given by the dealer’s must be very convincing to the customers and it

should give the best free services by the automobile company. It should provide online

help service to customer’s i.e. helping its customers to contact near by service station if

their vehicle gives any problem in the unknown location.

Colures:

If the availability vehicle colures are more then the customer diversity towards other

company is less. Because there are some customers who change their brand because of

the non-availability of the vehicle colures is less.

Fuel consumption:

Fuel consumption the mileage of the vehicle for every liter of petrol or diesel. Now day’s

customers give more stress for the fuel consumption because of the continuous increase

in the price of petrol and diesel.

Safety:

The safety features like are inserted after testing all safety tests of the vehicle. The

customers are very keen about the safety features of cars. If required safety features are

not available in the vehicles then the customers may move to imported higher end

Vehicle.

Advertisement:

The Advertisement is the easiest way to grab the customer’s attention and to help to

know about product feature. Which would help the customer in buying decisions.



Schemes & offers:

The Company and dealer’s give some schemes & offers to customers to attract more

customers. Schemes and offers like extension of the warranty period, Price discount, free

insurance and accessories.

Warranty extension: Warranty extension is the extension of the warranty after end of

warranty period. The warranty extension can be extended for another one year or two

years, which cover only technical and non technical minor parts of the vehicle.

Exchange offers:

Exchange offer is to give your old car of that company and get discount on your new car.

The old car estimated its price based on its model and condition of the vehicle. Thus

Exchange offer is one of the most effective offers by the company.

0 % car finance:

This means finance is provided by automobile company itself at 0 % interest on its

vehicle. This helps the consumer to afford the vehicle with less expense.

Other Factors that influence the on consumer decision making:

Personal factors

Social factors



ANALYSIS

Do you own a car?

75 75.0 75.0 75.025 25.0 25.0 100.0

100 100.0 100.0

YesNoTotal

ValidFrequency Percent Valid Percent

CumulativePercent

Do you own a car?

Do you own a car?

NoYes

Fre

quen

cy

80

60

40

20

0

25

75

Out of total sample taken 75 % respondents own the car and 25% of the respondents do

not own the car.



Do you intend to purchase another car?

66 66.0 88.0 88.09 9.0 12.0 100.0

75 75.0 100.025 25.0

100 100.0

YesNoTotal

Valid

SystemMissingTotal

Frequency Percent Valid PercentCumulative

Percent



NoYes

Fre

quen

cy

70

60

50

40

30

20

10

0

9

66

Out of total sample taken 66% respondents are interested to buy another car and nearly

9% of the respondents do not indented to purchase another car.



If no, do you intend to purchase a car?

25 25.0 100.0 100.075 75.0

100 100.0

YesValidSystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent



Yes

Fre

quen

cy

30

20

10

0

25

Out of total sample taken of which 25% of the do not own the car and hence all the 25%

people are interested to buy the car.



If yes, what parameter do you consider before making purchase decision?

8 8.0 8.0 8.024 24.0 24.0 32.025 25.0 25.0 57.034 34.0 34.0 91.09 9.0 9.0 100.0

100 100.0 100.0

BrandpriceVehical PowerFuel ConsumptionSafetyTotal


CumulativePercent

Among the car 8% of the people are influenced by Brand image of the car, 24% are

influenced by vehicle power, 25% are influenced by safety feature’s of the car, 34% are

influenced by the price of vehicle and remaining 9% are of the people are concerned of

fuel consumption of the vehicle.




Safety

Fuel Consumption

Vehical Power

price

Brand

Freq

uenc

y

40

30

20

10

0

9

34

2524

8


To What extent do the following persons influence you in making purchase?

26 26.0 26.0 26.025 25.0 25.0 51.017 17.0 17.0 68.016 16.0 16.0 84.016 16.0 16.0 100.0

100 100.0 100.0

MechanicFamilyFriendsAdvertisementSchemes & OffersTotal


CumulativePercent

To What extent do the following persons influence you in making purchase

To What extent do the following persons influence you in making purchase

Schemes & Offers

Advertisement

Friends

Family

Mechanic

Freq

uenc

y

30

20

10

0

161617

2526

Among the car buyers nearly 26% of the people are influenced by the Mechanics and

25% by friends, 17% by the schemes & offers, 16% by family and 16% by the

advertisement.



Do Offers and schemes given by company influence you to change thedecession?

57 57.0 57.0 57.043 43.0 43.0 100.0

100 100.0 100.0

YesNoTotal


CumulativePercent

Do Offers and schemes given by company influence you to change the deces

Do Offers and schemes given by company influence you to change the deces

NoYes

Freq

uenc

y

60

50

40

30

20

10

0

43

57





If offers & schemes would influence you while purchasing a car which one do youfind most attractive?

8 8.0 8.0 8.08 8.0 8.0 16.0

25 25.0 25.0 41.025 25.0 25.0 66.034 34.0 34.0 100.0

100 100.0 100.0

0% car financeFree accessoriesCash discountExtended warrantyExchange offerTotal


CumulativePercent

If offers & schemes would influence you while purchasing a car which one

If offers & schemes would influence you while purchasing a car which one

Exchange offer

Extended warranty

Cash discount

Free accessories

0% car finance

Fre

quen

cy

40

30

20

10

0

34

2525

88

Offers & schemes influence 8% through 0% car finance, 8% by cash discount, 25% by

Exchenge offer, 25% by Free accessories and 34% by Extended warranty.



OBSERVATIONS

Findings:

Out of total sample taken 75 % respondents own the car and 25% of the

respondents do not own the car.

The 66% respondents are interested to buy another car and nearly 9% of the

respondents do not intented to purchase another car.

Out of total sample taken of which 25% of the do not own the car and hence all

the 25% people are interested to buy the car.

Among the car 8% of the people are influenced by Brand image of the car, 24%

are influenced by vehicle power, 25% are influenced by safety feature’s of the

car, 34% are influenced by the price of vehicle and remaining 9% are of the

people are concerned of fuel consumption of the vehicle.

Among the car buyers nearly 26% of the people are influenced by the Mechanics

and 25% by friends, 17% by the schemes & offers, 16% by family and 16% by

the advertisement.



Offers & schemes influence 8% through 0% car finance, 8% by cash discount,

25% by Exchenge offer, 25% by Free accessories and 34% by Extended warranty.



RECOMMENDATIONS

The Data indicated that there is huge potential in the Indian automobile industry.

Thus the Tata motors should differentiate themselves from there compitators even

better then past and even better for future so that they promote their products and

try to make their market monopoly.

Nearly 66% of the people are interested to buy another car even though they have

a car. Thus the suggestion want to give is, Try to keep the customers interest in

Tata motors, don’t give the chance to the customer to get dissatisfied .Which may

probably result of changing their brand.

Nearly 25% of the people do not have the car, thus all the 25% of the people are

interested to own the car. This shows the potential of market in the Indian

automobile industry. Thus Tata motors must make promotional activities and

keep product differentation, so that they attract more customers.

According to the survey most of the car buyers look to price of vehicle. The Tata

has always kept the best price for his product and also has been successful in it.

Thus the Tata must set even better price for his product in the future.

According to the survey more number of people in the car buyers take suggestions

of mechanics and family. Thus mechanics suggest Tata motors because of the

Vehicle power , which has best in its segment. Family people prefer the Tata

motors because of the interior space and comfort.


decision. Tata motors must give more offers & schemes comparing to their



compitator. There are few customers who are not influenced by the offer’s &

schemes , so to protect their interest maintain the features ,quality and service

after sales.

Offers and schemes have been effective in the promotional activity. That’s what

the Tata has been doing .Hence Tata dealer must concentrate on offers like 0%

finance and Free acceories, which has been less attractive to the customers.



QUESTIONAIRE

Respondent’s Name:_______________________________________________________Address: _______________________________________________________ _______________________________________________________Occupation: _______________________________________________________Monthly Income: ______________________________ Age_____________________

1.) Do you own car? a. Yes [ ] b. No [ ]

Note: If No, Go to Question No.4

2.) If Yes, Which car models do you have? _______________________ (Specify)

3.) Do you indented to purchase another car? a. Yes [ ] b. No [ ]

If Yes a. Same car as Present One [ ] b. Same company, but different model [ ] c. A car from different company [ ]

3a.) If same car as the present one why? __________________________________________

3b.) If same company but different brand why? __________________________________________

3c.) If same from different company Why? __________________________________________

4.) If No, Do you intend to Purchase Car? a. Yes [ ] b. No [ ]

5.) If Yes, what parameters do you consider before making purchase decisions?

a.) Model [ ] b.) Brand manager [ ] c.) Price [ ]



d) Delivery Period [ ] e.) Vehicle life [ ] f.) Vehicle Power [ ] g.) After sales Service [ ] h.) Colures available [ ] i.) Fuel consumption [ ] k.) Safety [ ]

6.) To What extent do the following persons influence you in making purchase decision? a.) Mechanic [ ] b.) Family [ ] c.) Friends [ ] d.) Advertisement [ ] e.) Schemes & offers [ ]

7.) What factors influence you to purchase a car? ____________________________________________________________________

8.) Do offers and schemes given by company influence you to change the decision?a. Yes [ ] b. No [ ]

9.) If offers & schemes would influence you while purchasing a car which one do You find most attractive ?

a.) 0% Car finance [ ] b.) Free accessories [ ] c.) Cash Discount [ ] d.) Extended Warranty [ ] e.) Exchange offer [ ]

10.) What do you Expect from dealer while purchasing a car?

___________________________________________________________________

BIBILIOGRAPHY



Reference Books

Marketing Management - Philip Kotler.

Marketing Management - K.D.Basava

Service Marketing - V.A.Zeithamal, D. D. Gremler

M. J. Bitner and Ajay Pandit

Websites:

www.manickbag.com

www.tatamotors.com

www.Indianautomobiles.com

www.carawle.com

Others:

News Paper & Magazines


A Project Report on STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY

Documents

product offerings

differentation strategies

consumer decision making

indian market

tata vehicles

study objective

tata motors vehicles

passenger vehicles market