Final Int Re Gated Proget Report

SHRI RAMSWAROOP MEMORIAL GROUP OFPROFESSIONAL COLLEGES

An Integrated Project Report ON

Departmental Strategies Of Tata Motors Lucknow

FOR TATA MOTORS LUCKNOW

Under the Guidance of Submitted by

Mr. Nimish Saxena Mohammad Azam(PGDM 10007)

Anupam Singh(PGDM 10003)

Shikha Uttam(PGDM 10013)

Priyanka Singh(PGDM)

Jyoti Sahai(PGDM 10008)

Business ReportDepartmental Strategies Of Tata Motors Lucknow

2

TABLE OF CONTENTS

SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES


3

ACKNOWLEDGEMENT

Successful accomplishment of any task is possible only with the co-

operation of the people at various levels. It is impossible to thank each of

them individually, but a sincere effort is being made to thank some of

them.

We express our profound gratitude and reverence to Mr. Nimish

Saxena(COURSE COORDINATOR-PGDM 1st year), guide for his

continuous guidance and invaluable suggestions at all stages during the

dissertation .In his helping way he also provided constant support and

encouragement and therefore all expression shall feel short in conveying

our unlimited gratefulness to him.

My special thanks to Mr.Pankaj Dhingra(HEAD OF THE

DEPARTMENT OF PGDM) for his invaluable guidance and support

and advice without whom dissertation would not have been possible .

Last but not the least we would like to thank our college SRMGPC

We also want to thankfully acknowledge our family members and friends whose inspiration and constant encouragement was a source of sustenance in carrying out our work.

ANUPAM SINGH

MODH.AZAM

SHIKHA UTTAM

PRIYANKA



4

JYOTI SAHAI

Executive Summary

This Integrated research report tries to take a look on various

aspects on Marketing and Human Resource and their respective strategies

adopted by Tata Motors Limited (Lucknow). We settled for Tata Motors

Limited (Lucknow) because it is established under the parent company,

Tata Group, in 1945, Tata Motors Limited has become India’s largest

automobile company. It was the first Indian automobile company to list on

the New York Stock Exchange.

Tata Motors began manufacturing commercial vehicles in 1954 and

entered the passenger vehicles market segment in 1991.

In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a

reputed Spanish bus and coach manufacturer. In May 2009, Tata Motors

introduced ushered in a new era in the Indian automobile industry, in

keeping with its pioneering tradition, by unveiling its new range of world

standard trucks. In their power, speed, carrying capacity, operating

economy and trims, they will introduce new benchmarks in India and

match the best in the world in performance at a lower life-cycle cost. Tata

Motors now ranks second in India’s passenger vehicle market. Hence a

detailed study at the marketing strategies adopted by Tata Motors gives us

an excellent learning opportunity.

Objectives: Some of the Objectives which focused upon in this report

are:

To study the Marketing& H.R. Strategies of Tata Motors.



5

To Focus on Marketing Mix Of Tata Motors.



6

INRTRODUCTION

ORGANIZATION PROFILE

The total revenue of Tata companies, taken together, was $67.4 billion

(around Rs319,534 crore) in 2009-10, with 57 per cent of this coming

from business outside India. Tata companies employ around 395,000

people worldwide. The Tata name has been respected in India for 140

years for its adherence to strong values and business ethics.

Every Tata company or enterprise operates independently. Each of these

companies has its own board of directors and shareholders, to whom it is

answerable. There are 28 publicly listed Tata enterprises and they have a

combined market capitalisation of about $107.98 billion (as on April 13,

2011), and a shareholder base of 3.5 million. The major Tata companies

are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata

Power, Tata Chemicals, Tata Global Beverages, Indian Hotels and Tata

Communications.

Tata Steel became the tenth-largest steel maker in the world after it

acquired Corus, later renamed Tata Steel Europe. Tata Motors is among

the top five commercial vehicle manufacturers in the world and has

recently acquired Jaguar and Land Rover. TCS is a leading global

software company, with delivery centres in the US, UK, Hungary, Brazil,

Uruguay and China, besides India. Tata Global Beverages is the second-

largest player in tea in the world. Tata Chemicals is the world’s second

largest manufacturer of soda ash and Tata Communications is one of the

world’s largest wholesale voice carriers.



7

In tandem with the increasing international footprint of Tata companies,

the Tata brand is also gaining international recognition. Brand Finance, a

UK-based consultancy firm, recently valued the Tata brand at $11.22

billion and ranked it 65th among the world's Top 100 brands.

BusinessWeek magazine ranked Tata 17th among the '50 Most Innovative

Companies' list and the Reputation Institute, USA, in 2009 rated it 11th on

its list of world's most reputable companies.

Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the

spirit of nationalism. It pioneered several industries of national importance

in India: steel, power, hospitality and airlines. In more recent times, its

pioneering spirit has been showcased by companies such as TCS, India’s

first software company, and Tata Motors, which made India’s first

indigenously developed car, the Indica, in 1998 and recently unveiled the

world’s lowest-cost car, the Tata Nano.

Tata companies have always believed in returning wealth to the society

they serve. Two-thirds of the equity of Tata Sons, the Tata promoter

company, is held by philanthropic trusts that have created national

institutions for science and technology, medical research, social studies

and the performing arts. The trusts also provide aid and assistance to non-

government organisations working in the areas of education, healthcare

and livelihoods. Tata companies also extend social welfare activities to

communities around their industrial units. The combined development-

related expenditure of the trusts and the companies amounts to around 4

per cent of the net profits of all the Tata companies taken together.

Going forward, Tata is focusing on new technologies and innovation to

drive its business in India and internationally. The Nano car is one



8

example, as is the Eka supercomputer (developed by another Tata

company), which in 2008 was ranked the world’s fourth fastest. Anchored

in India and wedded to traditional values and strong ethics, Tata

companies are building multinational businesses that will achieve growth

through excellence and innovation, while balancing the interests of

shareholders, employees and civil society.

Tata Motors is India's largest automobile company, with consolidated

revenues of Rs 92,519 crore ($20 billion) in 2009-10. Through

subsidiaries and associate companies, Tata Motors has operations in the

UK, South Korea, Thailand and Spain. Among them is Jaguar Land

Rover, the business comprising the two iconic British brands. It also has

an industrial joint venture with Fiat in India.

Tata Motors is the country's market leader in commercial vehicles and

among the top three in passenger vehicles. It is also the world's fourth

largest manufacturer of medium / heavy commercial vehicles, and the

second largest bus manufacturer. Tata cars, buses and trucks are being

marketed in several countries in Europe, Africa, the Middle East, South

Asia, South East Asia and South America.

The company, formerly known as Tata Engineering and Locomotive

Company, began manufacturing commercial vehicles in 1954 with a 15-

year collaboration agreement with Daimler Benz of Germany. It has,

since, developed Tata Ace, India's first indigenous light commercial

vehicle, Tata Safari, India's first sports utility vehicle, Tata Indica, India's

first indigenously manufactured passenger car, and the Nano, the world's

cheapest car.



9

Tata Motors has over 1,400 engineers and scientists in six R&D centres in

India, South Korea, Spain and the UK.

Joint ventures, subsidiaries, associates

Tata Motors has joint ventures with Marcopolo, the Brazil-based maker of

bus and coach bodies, and with Fiat Auto (to build a commercial vehicle at

Fiat's facilities in Córdoba, Argentina).

Other associates include:

Tata Daewoo Commercial Vehicle Company, a 100-per cent subsidiary of

Tata Motors in the business of heavy commercial vehicles

(www.daewootruck.co.kr/).

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

subsidiary engaged in design engineering and development of products.

Telco Construction Equipment Company makes construction equipment

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

by Hitachi Construction Machinery Company, Japan (www.telcon.co.in/).

Tata Technologies provides specialised engineering and design services,

product lifecycle management and product-centric information technology

services (www.tatatechnologies.com/).

Tata Motors (Thailand) is a joint venture between Tata Motors (70 per

cent) and Thonburi Automotive Assembly Plant Co (30 per cent) to

manufacture and market the company’s pickup vehicles in Thailand

(www.tatamotors.co.th/).

Tata Cummins manufactures high horsepower engines used in the

company’s range of commercial vehicles (www.tatacummins.com/).


http://www.tatacummins.com/

http://www.tatamotors.co.th/

http://www.tatatechnologies.com/

http://www.telcon.co.in/

http://www.daewootruck.co.kr/


10

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 (www.tal.co.in/).

Hispano Carrocera is a Spanish bus manufacturing company in which Tata

Motors has a 21-per cent stake (www.hispano-net.com/).

Concorde Motors is a 100 per cent subsidiary retailing Tata Motors’ range

of passenger vehicles (www.concordemotors.com/).

Tata Motors Finance is a 100 per cent subsidiary in the business of

financing customers and channel partners of Tata Motors

(www.tatamotorfinance.com/).

Location

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

Sanand (west), and Lucknow and Pantnagar (north). Tata Motors and Fiat

have set up a common manufacturing facility at Ranjangaon, near Pune.

MILESTONES

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 (TELCO) is set up as a

locomotive maker at the end of World War II


http://www.tatamotorfinance.com/

http://www.concordemotors.com/

http://www.hispano-net.com/

http://www.tal.co.in/


11

1954- Company shift to making trucks in a joint venture with Germany’s

Daimler-Benz

1961- Exports begin with the first truck begins being shipped to Ceylon

(present-day Sri Lanka)

1977- First commercial vehicle manufactured in Pune

1983- Manufacture of heavy commercial vehicles commences

1986- Production of first light commercial vehicle

1991- Launch of the first passenger car, the Tata Sierra. One millionth

vehicle rolled out.

1994- Enters joint venture to make Mercedes Benz cars in India

1999-Beings production of India’s first fully indigenous passenger car, the

Indica

2002-Ends joint venture with Daimler

2002-TELCO is renamed Tata Motors Ltd.

2003-Tata Motors Ltd. Announces plan to build world’s cheapest car for

100,000 rupees (1,250 pounds or 2,500 dollars)

2004- Acquires South Korea’s Daewoo Commercial Vehicle Company

and is listed on the New York Stock Exchange

2005- Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA,

launches mini-truck, the Ace

2006- Signs initial agreement with Fiat



12

2008- Unveils one-lakh (100,000 rupee) “People’s Car” also know as the

Nano. Acquires Jaguar and Land Rover.

2009- Tata Motors Ltd. launches Nano. Introduction of new world

standard truck range

BRIEF HISTORY

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. The state-of-the-

art plant is strongly backed by an Engineering Research Centre and

Service set-up to support with latest technology and cater to the

complexities of automobile manufacturing. Fully Built Vehicle business,

which is one of the fast growing areas of our business, is also established

in Lucknow.

Our plant, rolls out commercial vehicles and is specialized in the

designing and manufacturing of a range of modern buses which includes

Low-floor, Ultra Low-floor, CNG & RE Buses.

The Lucknow facility also specializes in manufacturing HCBS (High

capacity Bus System) buses.

In light of Company’s aggressive growth plans, we are currently in

expansion phase and production at Lucknow would grow many-fold in

near future. The expansion shall be in the areas of painting, welding,

vehicle assembly & testing and utility services, driven by latest

technology. To achieve these plans we invite people who have good



13

Technical Knowledge, seek Challenging Opportunities and have a Drive

for Engineering Excellence to come and partner us in our journey.

TATA MOTORS-LUCKNOW PLANT

There are three divisions in TATA Motors, Lucknow:

Training division: The Training Center at the Lucknow plant aims at

providing high quality Apprenticeship Training. In addition, the Centre

provides both internal and external training, support to operators,

supervisors and managers in areas like special skills and technology,

safety, personnel practices etc. The Lucknow plant, after a major

restructuring exercise, executed a smooth transition from function-based

to process-based structure. By this structure, process owners are required

to meet stretched targets, and in order to do so, are required to encourage

individual learning and development of employees. A structured process is

being followed to establish and reinforce an environment that encourages

innovation.

Assembly division: Lucknow Plant started with the assembly of

Medium Commercial Vehicles (MCVs) to meet the demand in the

Northern Indian market. However, in 1995, the unit started manufacturing

bus chassis of Light Commercial Vehicles (LCVs) and SUMOs. The

facilities for manufacturing the spare parts were set up and started supply

of Crown wheel & pinion (CWP) in 1994. Subsequently, G-16 & G-18



14

Gear Parts started in 1998. With the availability of G-16 gear parts

manufacturing facility, the Plant also started assembly of G-16 Gear Box

to meet in-house requirement for SUMO vehicles in the year 2000.Now

TATA Motors Lucknow has started assembling of CNG MCV`s to meet

the consumers demand. TATA Motors is also producing Rear Engine

CV`s.

Manufacturing Division: In TATA Motors Lucknow Crown Wheel

and Pinion are manufactured by various gear cutting process. Machining

(grinding and heat treatment) of Gear Box parts is also done here. These

gears are used in gear boxes or as spares. Now TATA Motors is

assembling Gear Box of ACE (Newly launched small ²CV) in Lucknow

itself. The Manufacturing unit of Tata Motors at Lucknow is the latest

manufacturing facility of Tata motors and is located towards East of

Lucknow plant

VISION- “Best in the manner in which we operate, best in the product we

deliver and best in our value system and ethics”.

MISSION-"TATA MOTORS is committed in letter and spirit to corporate

social responsibility."

`

FIVE CORE VALUES OF TATA



15

The Tata Group has always sought to be a value-driven organization. These values continue to direct the Group’s growth and businesses. The five core Tata values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide.

Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many

times over.

BUSSINESSES CARRIED BY TATA MOTORS

Tata Motors Lucknow makes multi-utility vehicles and light, medium and

heavy commercial vehicles.



16

Commercial vehicles: The commercial vehicle range extends from the

light two-tonne truck to heavy dumpers and multi-axled vehicles in the

above 40-tonne segment.

Passenger buses: The Company also manufactures and sells passenger

buses, 12-seaters to 60-seaters, in the light, medium and heavy segments.

ORGANIZATIONAL CHART OF TATA

MOTORS LUCKNOW



17

RESEARCH OBJECTIVE



18

Objectives are the backbone of any study. Each and every activity has

some objective has some objectives and purpose. It ends with serve of the

purpose .To achieve these objectives there are so many considerable

factors or related aspects which must be considered.

The project evaluation was done of the marketing and human resource

strategies of the TATA MOTORS Lucknow so that we could judge the

growth of the TATA MOTORS Lucknow.

THE MAIN OBJECTIVE OF THE STUDY IS AS FOLLOWS:

To know about how the market be build for TATA MOTORS lucknow.

To know about what marketing strategies which TATA MOTORS

adopted in Lucknow.

To know the future scope of the TATA MOTORS in automobile Industry.

To know about the growth of TATA MOTORS.

To know about the future prospects for TATA MOTORS Lucknow .

To know about the growth of TATA MOTORS in global market



19

RESEARCH METHODOLOGY

As research is the scientific and systematic search for pertinent

information on a specific topic. Research Methodology is a way to

systematically solve the research problem ,it does not take the research

method but also there is logic behind the methods.

Research is the systematic process of collecting and analyzing information

(data) in order to increase our understanding of the phenomenon about

which we are concerned or interested

The system of collecting data for research projects is known as

research methodology. The data may be collected for either theoretical or

practical research for example management research may be strategically

conceptualized along with operational planning methods and change

management.

Some important factors in research methodology include validity of

research data, Ethics and the reliability of measures most of your work is

finished by the time you finish the analysis of your data.

Formulating of research questions along with sampling weather probable

or non probable is followed by measurement that includes surveys and

scaling. This is followed by research design, which may be either

experimental or quasi-experimental. The last two stages are data analysis

and finally writing the research paper, which is organized carefully into

graphs and tables so that only important relevant data is shown.


http://www.blurtit.com/q121564.html

http://www.blurtit.com/q462869.html

http://www.blurtit.com/Sports_Leisure/Hobbies/Collecting/


20

RESEARCH DESIGN

Research designs are concerned with turning the research question into a

testing project. The best design depends on your research questions. Every

design has its positive and negative sides.

Research design can be divided into fixed and flexible research designs

(Robson, 1993). Others have referred to this distinction with ‘quantitative

research designs’ and ‘qualitative research designs’. However, fixed

designs need not be quantitative, and flexible design need not be

qualitative. In fixed designs the design of the study is fixed before the

main stage of data collection takes place. Fixed designs are normally

theory-driven; otherwise it’s impossible to know in advance which

variables need to be controlled and measured. Often these variables are

quantitative. Flexible designs allow for more freedom during the data

collection. One reason for using a flexible research design can be that the

variable of interest is not quantitatively measurable, such as culture. In

other cases, theory might not be available before one starts the research.

RESEARCH DESIGN FOR THE RESEARCH

Detailed and structured questionnaire was designed.

Survey a sample of 50 employees

The methodology developed was Primary and Secondary research.

The questionnaire was designed to get information from employees about

the marketing and h.r. strategies adopted by TATA MOTORS Lucknow


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


21

RESEARCH TOOL

QUESTIONNAIRE:

A questionnaire is a research instrument consisting of a series

of questions and other prompts for the purpose of gathering information

from respondents. Although they are often designed for statistical analysis

of the responses, this is not always the case. The questionnaire was

invented by Sir Francis Galton

Questionnaires have advantages over some other types of surveys in that

they are cheap, do not require as much effort from the questioner as verbal

or telephone surveys, and often have standardized answers that make it

simple to compile data. However, such standardized answers may frustrate

users. Questionnaires are also sharply limited by the fact that respondents

must be able to read the questions and respond to them. Thus, for some

demographic groups conducting a survey by questionnaire may not be

practical.

QUESTIONNAIRE

Marketing& Sales Department

1. Are you satisfied with the budget provided to you for the marketing of the

product?

Satisfied

Highly satisfied

Unsatisfied


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

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

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

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


22

2. How will you rate your marketing team?

1

2

3

4

3. Are the people of your department given good amount of training?

Agree

Disagree

Can’t say

4. Do you involve your lower employees for the suggestions?

Yes

No

Sometimes

5. Do you follow market segmentation for your passenger car vehicles?

Yes

No

6. Which marketing mix factor do you more focus on and why?

………………………………………………………………………………

………………………………………………………………………………

7. Which type of distribution channel you have and the reason for it?



23

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

……………………………………

8. What are the advantages which you have over your competitors regarding

your product?

………………………………………………………………………………

………………………………………………………………………………

………………………………

9. What are the comparison of your sales figures?

………………………………………………………………………………

………………………………………………………………………………

………………………………

QUESTIONNAIREHUMAN RESOURCE DEPARTMENT

Q1- What are your recruitment policy ?

………………………………………………………………………………………………………………………………………………………............



24

Q2- What are your training programme ?

………………………………………………………………………………………………………………………………………………………………

Q3-What motivation programme you follow?

…………………………………………………………………………………………………………………………………………………………………

Q4-Do you have any internal magzine for your employees?

…………………………………………………………………………………………………………………………………………………………………

Q5-What are your stress management programme?

…………………………………………………………………………………………………………………………………………………………………

Q6-How you handle conflict among your employees?

………………………………………………………………………………………………………………………………………………………………

SAMPLING PLAN



25

A sampling plan is a detailed outline of which measurements will be taken

at what times, on which material, in what manner, and by whom.

Sampling plans should be designed in such a way that the resulting data

will contain a representative sample of the parameters of interest and

allow for all questions, as stated in the goals, to be answered.

The steps involved in developing a sampling plan are:

Identify the parameters to be measured, the range of possible values, and

the required resolution

Design a sampling scheme that details how and when samples will be

taken

Select sample sizes

Design data storage formats

Assign roles and responsibilities

SAMPLE SIZE: The sample size of our research was 50 employees as

whole in which 25 were from marketing & sales and 25 from the H.R.

department.

SAMPLING METHOD: Simple random sampling method was

taken for the research.


http://www.itl.nist.gov/div898/handbook/ppc/section3/ppc335.htm








26

DATA COLLECTION

PRIMARY DATA: Questionnaires filled up from the departmental

employees.

SECONDRY DATA: Journals, auto expo, overdrive, internet, news

paper.

DATA ANALYSIS

MARKETING AND SALES

1. Are you satisfied with the budget provided to you for the marketing of the product?



27

2. How will you rate your marketing team.

3. Are the people of your department given good amount of training?



28

4. Is there any involvement of lower employees for their suggestions?

5. Do you follow market segmentation for your passenger car vehicles?



29

6. Which marketing mix factor do you more focus on and why?

7. Which type of distribution channel you have and the reason for it?



30

8. What are the advantages which you have over your competitors regarding

your product?

9. SALES COMPARISON OF THE VEHICLES

1. HEAVY COMMERCIAL VEHICLES



31

2. LIGHT COMMERCIAL VEHICLE

3. SALE OF PASSENGER CARS



32

MARKETING STRATEGIES ADOPTED TATA

MOTORS MARKETING & SALES

DPARTMENT( LUCKNOW)

a) Introduction of the new Tata nano

The introduction of the Nano received media attention due to its targeted

low price. The Financial Times reported[: "If ever there were a symbol of

India’s ambitions to become a modern nation, it would surely be the Nano,

the tiny car with the even tinier price-tag. A triumph of homegrown

engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the dream of

millions of Indians groping for a shot at urban prosperity." The car is

expected to boost the Indian economy, create entrepreneurial-opportunities

across India as well as expand the Indian car market by 65% The car was

envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors,

who has described it as an eco-friendly "people's car". Nano has been

greatly appreciated by many sources and the media for its low-cos t and

eco-friendly initiatives which include using compressed-air as fuel and an

electric-version (E-Nano Tata Group is expected to mass-manufacture the

Nano, particularly the electric-version, and, besides selling them in India,

to also export them worldwide[25][26]

Critics of the car have questioned its safety in India (where reportedly

90,000 people are killed in road-accidents every year), and have also

criticised the pollution that it would cause (including criticism by Nobel

Peace Prize winner Rajendra Pachauri). However, Tata Motors has

promised that it would definitely release Nano's eco-friendly models

alongside the gasoline-model


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

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

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

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

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

http://en.wikipedia.org/wiki/Tata_Nano#cite_note-25%23cite_note-25

http://en.wikipedia.org/wiki/Tata_Nano#cite_note-24%23cite_note-24


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

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

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

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


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

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


33

The Nano was originally to have been manufactured at a new factory in

Singur, West Bengal, but increasingly violent protests forced Tata to pull

out October 2008. (See Singur factory pullout below.) Currently, Tata

Motors is reportedly manufacturing Nano at its existing Pantnagar

(Uttarakhand) plant and a mother plant has been proposed for Sanand

Gujarat.]The company will bank on existing dealer network for Nano

initially. The new Nano Plant could have a capacity of 500,000 units,

compared to 300,000 for Singur. Gujarat has also agreed to match all the

incentives offered by West Bengal government.

Cost Cutting features

The Nano's boot does not open, instead the rear seats can be folded down

to access the boot space

It has a single windscreen wiper instead of the usual Some exterior parts

of it are glued together, rather than welded.

It has no power steering.

Its door opening lever was simplified.

It has 3 nuts on the wheels instead of the statutory 4 nuts.

It only has 1 side view mirror

Price

Tata initially targeted the vehicle as "the least expensive production car in

the world"aiming for a starting price of 100,000 rupees or approximately

US$2000 (using exchange rate as of March 22, 2009)6 years ago, despite

rapidly rising material prices at the time


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

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

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

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

http://en.wikipedia.org/wiki/Tata_Nano#Singur_factory_pullout%23Singur_factory_pullout

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

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


34

As of August 2008, material costs had risen from 13% to 23% over the

car’s development, and Tata faced the choice of:

introducing the car with an artificially low price through government

subsidies and tax-breaks

forgoing profit on the car

using vertical-integration to artificially boost profits on cars at the expense

of their materials industries

partially using inexpensive polymers or biodegradable plastics instead of a

full metal-body raising the price of the car option.

Model versions

At its launch the Nano was available in three trim levels:

the basic Tata Nano Std priced at 123,000 Rupees has no extras;

the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;

the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow

Colour Taxi Version;

the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power

windows and central locking

The Nano Europa, European version of the Tata Nano has all of the above

plus a larger body, bigger 3-cylinder engine, anti-lock braking system

(ABS) and meets European crash standards and emission. The base model

will have fixed seats, except for the driver's, which will be adjustable,


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

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

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


35

while the deluxe and luxury models will get air conditioning and body

coloured bumpers.

b)Modification in tata sumo

New Tata Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The

discontinuation of Qualis to launch the Toyota Innova proved

advantageous to Tata Sumo. The Sumo has seen a series of changes in

terms of refinement in this decade. It has been the favourite choice for cab

owners, as it is rugged and affordable.

The Tata Sumo has been enjoying its position in the MUV market since

1994. It had stiff competition with new Sumo Victa has been portrayed as

a family lifestyle vehicle, but in fact is a carry over of the old Sumo, with

some cosmetic changes. The Sumo comes in nine Victa variants: CX 10/7



36

Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX

10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the

Victa DI variants, are powered by a 2-litre Inline-4 diesel engine. The GX

and GX TC variants get a 2-litre turbocharged diesel engine that generates

89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine.

Refinement, both internal and external, is evident across the variants.

Tata's latest three variants under the 'Sumo Grande' category are LX, EX

and GX available in 2-seater, 7-seater and 8-seater configurations. Sumo

Grande boasts of a powerful 2.2-L direct injection common rail (DICOR)

c) New version of indigo,indigo Dicor

Dicor Variants

The DICOR (common rail diesel) version of Tata Indigo is available in

two variants which has already hit the bull's eyes. The beefy & bony

structured sedan has the capacity to deliver maximum torque of 140Nm @

1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been made apt

for Indian roads especially with its driver & co passengers oriented

positive attributes such as :

Anti-submarine front seats

New electronic instrument cluster with engine RPM meter

Rear Seat with double folding backrest

Video player with MP3: with headrest mounted LCD screens

1.4-litre as rail diesel engine



37

Indigo LX Dicor

Tata Indigo LX Dicor on the other hand features manually operated with

chrome strip outer rear view window, black dials with chrome rings & star

check as the new pattern for its console&ACfascia.

Indigo LS Dicor

Tata Indigo LS Dicor features manually operated outer rear view mirror,

black dials, & Benz silver as the new pattern for console & AC fascia. It

has no mounted LCD screens.

e) Tapping of Rural Markets

According to the National Council for Applied Economic Research, or

NCAER, rural India accounts for 70% of India’s population, 56% of the

national income, 64% of the total expenditure and one-third of the total

savings. So, the difficulties faced in cracking these markets pale before the

huge potential they offer a company. Of the total sales (of consumer

goods), around 55% come from rural India, and going ahead, the

contribution is likely to grow. NCAER data suggests that in real terms, at

1999 prices, the size of the rural economy will be about Rs16 trillion in

2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm

income will be about two-thirds of the rural economy by 2012-13.

Noticing this huge potential Tata motors now plans to tap the rural market,

60 per cent of which runs on cash. Tata motors ltd are working on

strategies to make inroads into these markets.



38

Human Resource Strategies

a) Hiring Practices

Hiring the right talent is the greatest challenge in business environment

and new and innovative hiring strategies are the need of the hour if Indian

companies have to succeed in the changing global scenario. With Indian

companies entering the phase of global mergers and acquisitions, already

there is a shift in standard hiring practices, the compensation being

offered, sharing the vision of the company and transmitting a sense of

passion in the company to the prospective employee will go a long way in

attracting the right talent.

Some of the innovative hiring strategies could include hiring teams and

not just individuals and offering education and placement packages. Over

the past few years HR is witnessing a dramatic increase in lateral hiring of

professionals with some years of experience, hiring from the public sector

as well as experienced people looking for second careers. The challenge

facing many firms is to hire with retention.

A smart and sophisticated workforce will be the most important corporate

resource over the next 20 The demand for this resource is sure to go up;

however, the supply is already dwindling.



39

2.Re-organizing the organizational structure of co.

At the time of recession its important task of hr personal to reorganize

the structure of the company.so as to avoid extra man force and

duplication of work.

3.Reducing in the incentives given to employees.:

Human resource manger should cut incentives of individuals. for ex-If

marketing manager used to get incentives for hostelling accommodations

2000 per day. It should be cut down to 1200 per day..as already due to

recession he will get equal amount of service by paying the less price.

4.Providing various offers to employee so to maintain the

moral to work hard.

It is very important from company point of view to survive in recession.so

company should provide different offers and gifts. For achievements of

certain targets so as to maintain the moral of working in the company. Of

employees.

5. No salary cuts and increase in Resource and Development

They have not cut salaries of employees. But they have reduced the extra

working hours, which means the work which is to be done in two hours it

has to be completed in two hours. They have reduced delayes in work.



40

OPERATIONS STRATEGIES

Reducing no. of shifts :

Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as

to control reduce cost of production. And started making production

according to the sales required.

Quality Management

Quality management is crucial to effective operations management,

particularly

continuous improvement. More recent advancements in quality, such as

benchmarking and Total Quality Management, have resulted in

advancements to operation s management as well

Inventory Management

Costs can be substantial to store and move inventory. Innovative methods,

such as Just-in-Time inventory control, can save costs and move products

and services to customers more quickly.



41



42

FINDINGS

TATA MOTORS is number three in passenger car market after maruti-

suzuki & Hyundai.

Majority of the customers see TATA MOTORS with savings.

Most of the customers spend large sum of money.

Out of the samples, people are highly convinced that TATA MOTORS

will yield them better results.

As the sales of Maruti grows as well as Hyundai’s santro is still doing well

in mid size and small size segment so the INDICA may be a good options

for the company in this term for sustaining sales in long run as well as in

the current situations.

Product will have a gradual progress. Because most industries would wait

for the response about the product from other Company.

Commercial vehicles in all the segments is dominant all over the country

with high sales throughout



43

Strong distribution channel and easy availability of service stations all

over india is the major reason of Tata motors success

Tata motors Lucknow HR Policies are the most suitable policies adopted

by leading automobile companies

SWOT ANALYSIS

STRENGTHS

The internationalisation strategy so far has been to keep local managers in

new acquisitions, and to only transplant a couple of senior managers from

India into the new market. The benefit is that Tata has been able to

exchange expertise. For example after the Daewoo acquisition the Indian

company leaned work discipline and how to get the final product 'right

first time.'

The company has a strategy in place for the next stage of its expansion.

Not only is it focusing upon new products and acquisitions, but it also has

a programme of intensive management development in place in order to

establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat

since 2006. This has enhanced the product portfolio for Tata and Fiat in

terms of production and knowledge exchange. For example, the Fiat Palio

Style was launched by Tata in 2007, and the companies have an agreement

to build a pick-up targeted at Central and South America.



44

WEAKNESSES

The company's passenger car products are based upon 3rd and 4th

generation platforms, which put Tata Motors Limited at a disadvantage

with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities

below); Tat has not got a foothold in the luxury car segment in its

domestic, Indian market. Is the brand associated with commercial vehicles

and low-cost passenger cars to the extent that it has isolated itself from

lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English the word

'tat' means rubbish. Would the brand sensitive British consumer ever buy

into such a brand? Maybe not, but they would buy into Fiat, Jaguar and

Land Rover (see opportunities and strengths).

OPPORTUNITIES

In the summer of 2008 Tata Motor's announced that it had successfully

purchased the Land Rover and Jaguar brands from Ford Motors for UK

£2.3 million. Two of the World's luxury car brand have been added to its

portfolio of brands, and will undoubtedly off the company the chance to

market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor's Commercial vehicle

business in 2004 for around USD $16 million.

Nano is the cheapest car in the World - retailing at little more than a

motorbike. Whilst the World is getting ready for greener alternatives to

gas-guzzlers, is the Nano the answer in terms of concept or brand?



45

Incidentally, the new Land Rover and Jaguar models will cost up to 85

times more than a standard Nano!

The new global track platform is about to be launched from its Korean

(previously Daewoo) plant. Again, at a time when the World is looking for

environmentally friendly transport alternatives, is now the right time to

move into this segment? The answer to this question (and the one above)

is that new and emerging industrial nations such as India, South Korea and

China will have a thirst for low-cost passenger and commercial vehicles.

These are the opportunities. However the company has put in place a very

proactive Corporate Social Responsibility (CSR) committee to address

potential strategies that will make is operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-

efficient, eco-friendly engines. The bus has optional organic clutch with

booster assist and better air intakes that will reduce fuel consumption by

up to 10%.

THREATS

Other competing car manufacturers have been in the passenger car

business for 40, 50 or more years. Therefore Tata Motors Limited has to

catch up in terms of quality and lean production.

Sustainability and environmentalism could mean extra costs for this low-

cost producer. This could impact its underpinning competitive advantage.

Obviously, as Tata globalises and buys into other brands this problem

could be alleviated.

Since the company has focused upon the commercial and small vehicle

segments, it has left itself open to competition from overseas companies



46

for the emerging Indian luxury segments. For example ICICI bank and

DaimlerChrysler have invested in a new Pune-based plant which will build

5000 new Mercedes-Benz per annum. Other players developing luxury

cars targeted at the Indian market include Ford, Honda and Toyota. In fact

the entire Indian market has become a target for other global competitors

including Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata Motors

Limited on a couple of fronts. The price of steel and aluminium is

increasing putting pressure on the costs of production. Many of Tata's

products run on Diesel fuel which is becoming expensive globally and

within its traditional home market

PEST ANALYSIS

POLITICAL:

Since Tata Motors operates in multiple countries across Europe, Africa,

Asia, the Middle East, and Australia, it needs to pay close attention to the

political climate but also laws and regulations in all the countries it

operates in while also paying attention to regional governing bodies. Laws

governing commerce, trade, growth, and investment are dependent on the

local government as well as how successful local markets and economies

will be due to regional, national and local influence.

On March 26, 2008, Tata Motors reached an agreement with Ford

to purchase Jaguar and Land Rover. In order to be capable of this

acquisition, Tata Motors must have a full comprehension of the governing

bodies and laws regulating commerce in the home country, the United

Kingdom, but also in countries Jaguar and Land Rover operate in.



47

In accordance, Tata’s headquarters in Mumbai, India, strictly

controls and regulates operations in all dealerships and subsidiaries, in

addition to knowing and abiding by all labor laws in the multiple countries

where they have manufacturing plants it has to watch political change.

This will be especially vital in the future as Tata Motors continues to

expand and grow into new markets. “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 foundation of the company’s growth internationally is

a deep understand of economic stimulation, customer needs, and

individual government regulations and laws. Although it is the

headquarters ultimate responsibility to make sure each individual office

and branch is operating and abiding by the local laws, it will become

increasingly more important for that duty to be taken care of at the

regional or even local level.

ECONOMIC:

Operating in numerous countries across the world, Tata Motors

functions with a global economic perspective while focusing on each

individual market. Because Tata is in a rapid growth period, expanding or

forming a joint venture in over five countries world-wide since 2004, a

global approach enables Tata Motors to adapt and learn from the many

different regions within the whole automotive industry. They have

experience and resources from five continents across the globe, thus when

any variable changes in the market they can gather information and

resources from all over the world to address any issues. For instance, if the



48

price of the aluminum required to make engine blocks goes up in Kenya,

Tata has the option to get the aluminum from other suppliers in Europe or

Asia who they would normally get from for production in Ukraine or

Russia.

Tata Motors also has to pay close attention to shifts in currency

rates throughout the world. Currency fluctuations can equate to higher or

lower demands for Tata vehicles which in turn affect profitability. It can

also mean a rise in costs or a drop in returns. But they also have to pay

attention to not just the domestic currency, the rupee, but also to the dollar,

euro, bhat, won, and pound, to just name a few. Just because the rupee is

strong against the dollar does not mean it is strong against all the other

currencies. Attention to currency is important because it influences where

capital investment will develop and prosper.

SOCIAL:

Undoubtedly, the beliefs, opinions, and general attitude of all the

stakeholders in a company will affect how well a company performs. This

includes every stakeholder from the CEO and President, down to the line

workers who screw the door panel into place, from the investor to the

customer, the culture and attitude of all these people will ultimately

determine the future of a company and whether they will be profitable or

not. For this reason, Tata Motors tends to use an integration and rarely

separation technique with foreign companies they acquire.



49

On the other hand, some economic issues that Tata Motors face must also

be looked at from a more localized perspective. For instance, the market in

India for cars is much different than the market for cars in Italy. For one,

India has over one billion more people than Italy does, thus the market is

much larger or not as limited. Second, you must also take into affect the

demographics and the average income of each market. Italians have a

higher average income per capita than Indians and Italian citizens tend to

drive larger and fancier cars. For this reason, the Tata Nano might not do

so well in the Italian market. In summation, Tata Motors views the

economy from a global perspective with operations across the entire

globe; however, they must also maintain a local market understanding and

knowledge when it comes to product positioning and placement

throughout the different markets Tata conducts business in.

In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company,

which was at the time Korea’s second largest truck maker. Rather than

using de-culturation or assimilating Daewoo, Tata took an integrated

approach, and continued building and marketing Daewoo’s current models

as well as introducing a few new models globally just as it had been done

under Korean management.

With the new acquisition of Jaguar and Land Rover, Tata will have to be

careful with how they handle the acquisition. While Land Rover is

thriving while under the helm of Ford, Jaguar was more of the trouble

child. “Jaguar cost Ford some $10 billion during its 18-year stewardship

and its sales were in headlong decline, especially in America, its most

important market. Industry analysts also struggled to see what value Tata

could add that had eluded Ford, and what synergies there could be



50

between a maker of trucks and basic cars… and two luxury marquees”.

Separation could be a good approach for the immediate future to keep the

name of Jaguar and Land Rover distinguishable and associated with the

luxury automobile market. Overall, Tata does a good job of integrating

some aspects of their large multi-national conglomerate into new

acquisitions; however, the company must also understand that separation

from the name Tata can be valuable in some social areas.

TECHNOLOGY:

Tata Motors and its parent company, the Tata Group, are ahead of

the game in the technology field. The Tata Group as a whole has over 20

publicly listed enterprises and operates in more than 80 countries world-

wide. This equates to Tata Motors having lots of experience and resources

to draw from for research and development purposes. “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”. Employing 1,400 scientists and

engineers, Tata Motors’ Research and Development team is ahead of the

pack in India’s market and right with the rest of the field internationally.

Among Tata’s firsts are “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,” as well as the

increasingly famous Tata Nano, which is projected to be the world’s

cheapest production car. In the automotive industry, it is becoming

increasingly crucial for manufacturers to stay on top of the technology

curve with new problems always rising such as escalating gas prices and



51

pollution problems. Tata recognizes this and dedicates lots of resources

and time into research and development to be even with or preferably

ahead of other competitors, global trends, and changing economies. In all,

an automobile manufacturer must change, adapt, and evolve to stay

competitive in the automotive game, and this is exactly what Tata is doing

with their rapid growth, and extensive research and development.

SUGGESTIONS

Demo of the product should be made available to Customers, since most

of the purchase decisions are based on it.

Technical details should be made available to the customers in the most

accurate numerical form.

The Indica has remained a bestseller throughout in the industry figuring in

the top 3 selling list of cars for most of the years.

The distribution channel should be more efficient to cater the demand

during peak seasons like during dassraa, diwali etc.

Tata motors Lucknow should focus more on heavy commercial vehicles

production & marketing as there are now many competitors for it.



52

CONCLUSION

From this project we conclude that the marketing and H.R strategies of

Tata motors Lucknow are according to market. They always look after

their consumers and their needs. They make changes in their product what

consumer wants, that’s why most of the consumers, are satisfied from the

company. Company wants that every people can purchase their product so,

they have product from low price to high price with number of different

styles and designs without compromising product quality. Company is

also providing good services to their customers. Company has its own

show rooms and service centers in different places so customers can’t face

many difficulties to purchase their products.

“Success will largely be determined to the extent a company can

differentiate itself in terms of intangibles that go with a car.” Success

could well hinge on the best of bundle of services that a carmaker can

provide.


Final Int Re Gated Proget Report

Documents