A

PROJECT REP0RT
ON
Developing marketing strategies For increasing
the sale Of Light Commercial Vehicle Of
TATA MOTORS

Submitted in partial fulfillment for the award of the Degree

BBA
(Batch 2011-2014)

Under Guidance of:

Submitted By:

FAISAL NOMAN

AMIT SHARMA
Roll No.6305506
B.B.A. 6th Sem

LLOYD INSTITUTE OF MANAGEMANT &

TECHNOLOGY GR. NOIDA

Acknowledgement

I would like to thank the people who have in lot of their labor will
certainly not be enjoy to express my gratitude since this project would
not have accomplished the way it has, without the help , co-ordination,
guidance and support of the numerous people. Honestly admitting, I
was not capable enough to handle and maintain all these data etc. Had
I not received help from all these quarters.
My first thank goes to my project guide,MR. FAISAL NOMAN who
always remained a great source of inspiration and courage for me.
I am also thankful to LLOYD INSTITUTE OF MANAGEMANT &
TECHNOLOGY GR. NOIDA
for giving me this opportunity.

AMIT SHARMA

DECLARATION

I hereby declare that the Project titled

Developing marketing strategies for increasing

the sale Of Light Commercial Vehicle of
TATA MOTORS in Jharkhand is the result of
individual efforts.
The finding and interpretation in the report are
based on the data collected by me and the report
is not a reproduction of any other project
submitted for similar purposes.

Place: Greater Noida

Amit Sharma

Date:

CONTENTS
Serial No.

Content

Page No.

1.

Acknowledgement

2.

Declaration

3.

Introduction

4.

History

5.

Profile of TATA MOTORS

15

6.

Objectives & Scope

33

7.

Research Methodology

35

8.

Organization Structure

38

9.

Distribution Channel

40

10.

Micro Perspective on LCV sector

41

11.

Competitors profile

43

12.

Finding & Analysis

50

13.

Sales Promotion

75

14.

SWOT Analysis & Pricing Issue

79

15.

Suggestions

84

16.

Limitations

86

17.

Conclusion

87

18.

Bibliography

88

Introduction
As markets change, so does marketing. Marketing is no longer a company
department charged with a limited number of tasks managing advertising,
finding sales leads, providing customer etc. Marketing must be a
company wide undertaking. It deals with the whole process of entering
markets, establishing profitable positions and building loyal customer
relationship.
Management has two important components theory and practice. During
the two year management course, I have to understand, feel and
experience both the components. As a part of practical exposore, I got a
golden opportunity to under go the summer training in TATA MOTORS,
a leading name in the area of automobiles. My summer training project
was Developing marketing strategy for increasing the sale of light
commercial vehicles in Jharkhand.
In TATA MOTORS I was entrusted with the job of meeting the customers
and dealers of TATA LPT 407 EX, LTP 709 EX, LPT 909 EX , LPT 1109
EX , M&M 3200 DI, EICHER 10.50, EICHER 10.75, EICHER 10.90,
EICHER 11.10, ASHOK LEYLAND 9.12, ASHOK LEYLAND 11.12 to
get their feedback and recommendations about the improvement in the
product and services in relation to the different project objectives. I came
to know about many things about the after sales services, customer
relationship and above all the importance of customer for the company.
TATA MOTORS is very much responsive to customers needs. It provides
the maintenance facility to the customer in reasonable price. But we all
know that there is always a scope for improvement so after the studying
the market we had made certain recommendation to improve the
performance of the vehicles and the satisfaction level of the customers.
All these recommendation, which I have made, are on the basis of my
knowledge, field study and learning I have imbibed by the faculty of
GLOBAL INSTITUTE OF INFORMATION TECHNOLOGY, GREATER
NOIDA.

TATA MOTORS
7

Aim of the company

To become a truly global company.
Vision of the company
To be a world class corporate constantly furthering the interests of all its
stakeholders.

J.R.D.
TATA
Mission of the company
Towards:
Shareholders:To consistently create shareholder value by generating returns in
excess of weighted Average cost of capital (WACC) during the upturn
and at least equal to weighted Average Cost of Capital (WACC) during
the downturn of the business cycle.

Customers:To strengthen the Tata brand and create lasting relationship with the
customers by working closely with business partners to provide
superior values for money over the life cycle.

Employees:To create seamless organization the incubates and promotes

innovation, excellence and Tata core values.

Purpose:To create economic asset for road transport for bulk movement of
goods and people participate in managing these over the life of assets
in order to create and capture economic values.

HISTORY OF TATA MOTORS

8

1945
-The Company was incorporated on 1st September at Mumbai to
manufacture diesel vehicles for commercial use, excavators, industrial
shunter, dumpers, heavy forgings and machine tools.
-The commercial diesel vehicles which were known `Tata Mercedes
Benz' (TMB) are now called `Tata' vehicles after the expiry of the
collaboration agreement with Daimler-Benz AG, West Germany. The
company also used to manufacture pulp and paper making machinery.
1946
-Tata Engineering undertook manufacture of 5000 'KC' broad gauge open
wagons for the Indian Railway.
1959
-Research and Development Center set up at Jamshedpur.
1960
-The company's name, which was Tata Locomotive & Engineering
Company Ltd. was changed to Tata Engineering & Locomotive Company
Ltd.
1988
-During the year company negotiating with Daimler-Benz for
manufacturing their World Concept Truck in India. These vehicles were
to be marketed overseas by Daimler-Benz under their brand which would
lead to technological upgradation of the existing range of vehicles in
India.

1993
-Tata vehicles were launched in Argentina Chill, Paraguay etc.
9

1994
-During the year company introduced the Tata SUMO and LPT 709. The
company developed a new fuel injected, 4 cylinder petrol engine with the
assistance of AVL Austria.
1995
-During the year a new double pick-up and Army Version of various
Telco Vehicles were developed. A new pero engine and turbo diesel
engine, an up-graded 709 LCV, new sports utility vehicle Safari expected
to be launched shortly.
1997
-Telco became the first Indian private company to reach the sales of
Rs.10,000 crore.
-Telco is the second Indian four wheel maker after Mahindra and
Mahindra to participate in the show which has attracted 200 exhibitors
from 28 countries including world market leaders like BMW and
Mercedes.
1998
-Telco proposes to set up authorized service stations every 100 km on
every highway.
1999
-In Oct 1999, the Company won the National award for R&D Efforts in
Development of Indigenous Technology in the Mechanical Engineering
Industries Sector instituted by Department of Scientific and Industrial
Research, Ministry of Science and Technology for the year 1999.
2002
-Uses Tata Safari in Ram Gopal Varma's film 'Road', spends close to Rs 1
crore for the in-film product.
-Collaborates with Nippon-Arcelor for technical knowhow on CR steel.
2003
-Receives Teri's (The Energy and Resources Institute) CoRE-BCSD
(Corporate roundtable on development for sustainable development and
environment-business council for sustainable development) corporate
social responsibility (CSR) awards for '01-02.

10

-Overtakes Hyundai in passenger vehicle market.

-Company turns around, posts profit of Rs 300.11 crore as against the loss
of Rs 53.73 crore the previous corresponding period
-Crosses production milestone of 3 million.
-Tata Motors Ltd signed a binding Memorandum of Understanding
(MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea
for the acquisition of this company.
-Introduces Tata SFC 407 EX Turbo Light Commercial Vehicle (LCV).
-The Company shall be changed from 'TELCO ' to 'TATA MOTORS'
w.e.f December 24, 2003.
2004
-Tata Motors launch an upgraded version Indica on January 15, 2004, in a
bid to shore up sales of the small car.
-Auto Expo: Tata unveils new version of Indica.
-Tata Motors unveils Indica V2.
-Tata Motors launches new Indica V2 in Kerala.
-The much hyped Rs one lakh passenger car project of Tata Motors was
going ahead as planned.
-Tata Motors in talks with bus body builders to franchise manufacturing.
-Tata Motors enters agreement with Ukraine bus building firm.
-Tata Motors enters into agreement with Etalon.
-In a move to consolidate its presence in the light commercial vehicles
segment, Tata Motors has launched a new variant of its 407 series with
increased pay load capacity called SFC 407EX.
-Tata Motors buys Daewoo truck unit for Rs 465 crore.
-Tata Motors unveils Tata SFC 407 EX in Kerala.
-Tata Motors inks agreement with Austrian, French companies.

11

-Acquires Daewoo Commercial Vehicle Company Ltd (DWCV), Korea.

-Tata Motors launches new 6-TN truck.
- Tata Motors forays into used truck biz with Tata Preowned.
-Tata Motors, the country's largest commercial vehicles manufacturer
unveiled the new LPT 909EX Turbo Truck in Tamil Nadu.
-Tata Motors and Tata Africa unveiled a range of passenger cars, utility
vehicles, pick-ups, trucks and buses for the South African market.
-Tata Motors has launched a facelifted version of its multiutility vehicle,
Tata Sumo.
-Tata motors rolls out Tata SFC 407EX BS II turbo light commercial
vehicle.
-HR-training division of Tata Motors bags the prestigious and
internationally recognised "Golden Peacock National Training Award" in
the category of `Large Employer'.
.
-Tata Motors launches Indigo Marina on September 14, 2004.
-Tata Motors joins hands with Magma Leasing Ltd.
-Bharat Petroleum Corporation Ltd (BPCL) has entered into a marketing
tie-up with automobile manufacturer Tata Motors for marketing of engine
oils as co-branded lubricants for their commercial vehicles.
-Tata unveils Indigo Marina in Kerala.
2005
-Tata Motors partners with IOC for bio-diesel pilot project.
-Tata Motors launches ACE.
-Tata Motors unveils Tata Safari DICOR in Kerala market on August 11.
2006.
-Tata Motors rolls out 2 luxury variants of Indigo.
-Tata Motors unveiled new Indica V2 Turbo with a price tag of Rs 4.10
lakh for DLG variant and Rs 4.31 lakh for DLX
12

.
2007
-Tata Motors has been presented the Golden Peacock Global Award for
Corporate Social Responsibility (CSR) in the Large Business category by
the Institute of Directors.
-Tata Motors buys Nissan facility in S. Africa.
-Tata Motors has got a prestigious order from the Delhi Transport
Corporation (DTC) for 500 non-AC, CNG-propelled.
2008
-Tata Motors has captured the US based motors company Land rover and
Jaguar in $2 Billion.
-Tata Motors going to Launches Nano car in Rs.1 lakh.
-Tata motors sell over 12000 indica vista in Kerala.
-Tata motors to introduce Air cars it the next big things.

The First Truck of TATA MOTORS

13

PROFILE OF TATA MOTORS

Quality policy- Tata Motors is committed to maximizing
customer satisfaction and strives to achieve the goal of
excellence through ongoing development, manufacture and sale
of reliable, safe, cost-effective, quality product and services of
international standards, using environmentally sustainable
technologies for improving the levels of efficiency and
productivity within the plants and ancillaries. Tata Motors also has a
commitment towards improving the quality of life of its employees, both
within and out side its plants and offices, through improved work
practices and social welfare schemes.
Ratan
N.Tata

Board of Directors
Mr. Ratan N. Tata (Chairman)
Dr. J J Irani
Mr. R Gopalakrishnan
Wadia
Mr. S A Naik
Mr. Ravi Kant
Mr. P M Telang

Mr. N A Soonawala
Mr. V R Mehta
Mr. Nusli N
Mr. S M Palia
Mr. P P Kadle

Senior Management
Mr. Ravi Kant

Managing Director

Mr. P P Kadle
Affairs)

Executive Director (Finance and Corporate

Mr. A P Arya
Vehicles)

President (Heavy and Medium Commercial

14

Mr. P M Telang
Vehicles)

President (Light and Small Commercial

Mr. Rajiv Dube

President (Passenger Cars)

Mr. C Ramakrishnan

Vice-President (Chairman's Office)

Mr. Shyam Mani

Vice-President (Sales & Marketing Commercial Vehicle Business)

Mr. K C Girotra

Vice President (Lucknow Works & FBV)

Mr. R S Thakur

Vice President (Finance)

Mr. M V Rajarao

Vice President (Manufacturing - Pune)

Mr. R K Ghosh

Vice President (Customer Car

CommercialVehicles)

Mr. S Krishnan

Vice President (Commercial - Passenger Cars)

Mr. Zackria Sait

Vice President (Technical Services)

Mr. Akshaykumar
Mankad

Head (Car Plant)

Mr. P Y Gurav

Vice President (Corporate Finance Accounts and

Taxation)

Dr. S J Tambe

Vice President (Human Resource)

Mr. H K Sethna

Company Secretary

Corporate Communications
Mr. Debasis Ray

About the Company:Established in 1945, Tata Motors is India's

largest automobile company, with revenues of Rs 24,000 crore (USD 5.5
billion) in 2005-06. The company began manufacturing commercial
vehicles in 1954 with a 15-year collaboration agreement with Daimler
Benz of Germany. 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 and utility vehicle segments.

15

The company is the world's fifth-largest medium and heavy

commercial vehicle manufacturer.

Areas of Business:Tata Motors' product range covers passenger cars,

multi-utility vehicles as well as light, medium and heavy commercial
vehicles for goods and passenger transport. Seven out of 10 medium and
heavy commercial vehicles in India bear the trusted Tata mark.The
company developed India's first indigenously developed light commercial
vehicle, India's first sports utility vehicle and, in 1998, the Tata Indica
India's first indigenously manufactured passenger car. Within two years
of launch, Tata Indica became India's largest selling car in its segment.

Commercial vehicle business unit:The company has over 130 models of light, medium and heavy
commercial vehicles ranging from two tonnes to forty tonnes, buses
ranging from 12-seaters to 60-seaters, tippers, special purpose vehicles,
off-road vehicles and defence vehicles.

Passenger car business unit:The company's passenger car range comprises the compact car Indica, the
midsize Indigo and Indigo Marina in both petrol and diesel versions. The
Tata Sumo, the Tata Safari and its variants are the company's multi-utility
vehicle offerings.
In addition to the growth opportunities in the domestic market, the
company is pursuing growth through acquisitions. In 2004, it acquired the
Daewoo Commercial Vehicle Company, Korea's second largest truck
maker, now named Tata Daewoo Commercial Vehicles Company. In
2005, Tata Motors acquired a 21-per cent stake in Hispano Carrocera, a
reputed Spanish bus and coach manufacturer, with an option to acquire
the remaining stake as well.

16

Research and development:Tata Motors invests approximately up to 2 per cent of its annual turnover
on research and development, with an emphasis on new product /
aggregates development and technology upgradation. Its Engineering
Research Centre in Pune employs over 1,400 scientists and engineers and
has India's only certified crash-test facility and hemi-anechoic chamber
for testing of noise and vibration.
The company also draws on the resources of leading
international design and styling houses like the Institute of Development
in Automotive Engineering, SPA, Italy, and Stile Bertoni, Italy. The
company has also been implementing several environmentally sensitive
technologies in manufacturing processes and uses some of the world's
most advanced equipment for emission checking and control.

Environmental 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. All its products meet required
emission standards in the relevant geographies. 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.

Exports:Tata Motors' vehicles are exported primarily to Europe, Africa, the

Middle East, South and South East Asia and Australia. The company also
has assembly operations in Malaysia, Bangladesh, Ukraine, Kenya and
Russia. Over the years, the company has received more than 50 awards
from the government of India's Engineering Export.
Promotion Council, for its export initiatives. While currently about 14 per
cent (as on March 31, 2005) of its revenues are from its international
business, the company intends to increase its international business
through organic and inorganic growth routes.

Associates:17

Tata Motors has made substantial investments in building associate and

subsidiary companies that complement and support its business activities.
These include:
Tata Daewoo Commercial Vehicle Company manufactures heavy trucks
ranging from 15T GVW to 45T GVW. Tata Motors acquired this
company in March 2004.
Tata Cummins, a joint venture with Cummins, USA, manufactures
Cummins engines for Tata Motors.
Telco Construction Equipment Company, a joint venture with Hitachi
Machinery Company, Japan, is engaged in the manufacture and sale of
earthmoving machinery and construction equipment such as hydraulic
excavators, cranes and wheel-loaders.
Tata Technologies provides IT support in the areas of engineering
design, development and validation, business information systems and
ERP systems.
HV Axles manufactures axles for Tata Motors' medium and heavy
commercial vehicles.
HV Transmissions, supplies gearboxes for the company's medium and
heavy commercial vehicles.
Tata Holset, a joint venture between Holset Engineering Company, UK,
a wholly-owned subsidiary of Cummins Engine Company, USA and the
Tatas (Tata Motors, Tata International and Tata Industries are
shareholders). Incorporated in 1994, this company manufactures
turbochargers for engines made by Tata Cummins as well as other auto
manufacturers.
TAL Manufacturing Solutions manufactures painting systems, welding
lines, material handling systems and robotics. It also develops factory
automation solutions and provides consultancy services in the field of
manufacturing processes and factory layouts.
Concorde Motors (India): Retails Tata Motors' range of passenger
vehicles. Tata Precision Industries, Singapore and Tata Engineering

18

Services, Singapore, are engaged in the manufacture of high precision

tooling and spare parts, and warehousing, respectively.
Nita Company, Bangladesh, is engaged in the assembly of Tata vehicles
for the Bangladesh market.

Awards:Tata Motors has been chosen as India's Most Trusted Brand in cars in a
Readers Digest-AC Nielsen consumer survey in 2006.
Tata Motors' mini-truck, Ace, which has created an all-new category in
the commercial vehicles market, received the BBC-Top Gear' Design of
the Year 2006. The company's Star bus low-floor city bus and the Novus
heavy truck were adjudged second and third respectively.
For the second consecutive year, Tata Motors was rated by Auto Monitor
as the 'Commercial Vehicle Manufacturer of the Year' for 2006.
The Commercial Vehicle Business Unit won the CII-Exim Bank Award
for 2005 for Business Excellence, for being a role model of excellence in
management. The award particularly recognizes excellence in the
management of quality as a fundamental process.
The two divisions of the company also won the Tata Group's JRD QV
Awards for Business Excellence in 2005.
The Jamshedpur plant and the car plant at Pune received the Union
Ministry of Power's National Energy Conservation Award, which
recognize significant initiatives to reduce energy intensity and improve
energy efficiency. The Jamshedpur plant won the award for the fourth
year in a row.
The Commercial Vehicle Business Unit
and the Passenger Car Business Unit also received the CII's National
Award for excellence in energy management. The Foundry Division at
the Pune plant received the Gargi Huttenes Albertus Green Foundry of
the Year Award.

19

LOCATION OF THE PLANTS

JAMSHEDPUR
Birth

June 1,1945

Plant area
Divisions

822acres or 35,80,632sq.meters
Automobile, Foundry, Forge, HRD,
R&D, Support
The Township

Facilities

PUNE
Birth
Plant area
Divisions

Pimpri (1966)
Chinchwad (1966)
380.44 acres
126.15 acres
Production Engineering
Foundry
Vehicle
Manufacturing
complex
Engineering
Research
Center
Electronics
Training

LUCKNOW
Birth
Plant Area
Divisions

1991
600 acres
Assembly
Training

INDUSTRY GROWTH
20

FUTURE OF THE AUTOMOBILE IN

ECONOMY

21

GROWTH AND OUTPUT IN INDUSTRY

22

TATA MOTORS planning to invest in Uttaranchal for new capacity

manufacturing department.

TATA MOTORS' FLASH FIGURES FOR

MAY 2007
PRODUCTION

23

Category

May '07

May '06

May'05

2007-08

2006-07

2005-06

M& HCV

13901

13594

9910

25989

26229

16536

LCV

12159

12143

6919

25844

21936

12032

3836

3633

2223

7792

6513

4641

CARS

14681

17257

12206

31546

28568

25888

TOTAL

44577

46627

31258

91171

83246

59097

UTILITY

SALES
A. For the month
Domestic
Category
M& HCV
LCV
UTILITY
CARS
TOTAL

May '07
10500
10175
3363
14217
38255

Exports
May
'06
12682
9221
2862
15253
40018

May '05
8177
5161
2493
11511
27342

May '07
934
2012
84
1273
4303

Total
May '06
779
1828
215
1517
4339

May '05
403
1651
10
1187
3251

May '07
11434
12187
3447
15490
42558

May '06
13461
11049
3077
16770
44357

May
'05
8580
6812
2503
12698
30593

B. For the year

Domestic
Category
M& HCV
LCV
UTILITY
CARS
TOTAL

2007-08
20892
19390
6703
27719
74704

Exports
2006-07
24799
16778
5110
26333
73020

2005-06
13425
8281
4529
22211
48446

2007-08
1813
4101
141
2285
8340

Total
2006-07
1338
3467
447
2659
7911

2005-06
835
3010
27
2164
6036

2007-08
22705
23491
6844
30004
83044

Five core values of Tata motors

24

2006-07
26137
20245
5557
28992
80931

200506
14260
11291
4556
24375
54482

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-to-day 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.

25

TATAs Culture
Organizational Culture:It refers to a set of shared meaning held by the members of the
organization that differentiates one organization from the other. Every
organization has its own unique culture.

Tatas Culture is very much prevalent in its statement:-

Improving the quality of Life.

A century of Trust
Aspects of TATAS culture:Integrity

Honest and ethical in every aspects

Team approach

Working in teams

Equality

Flexibility

Treating all employees equally without any

discrimination
on grounds of cast, creed, sex, etc.
Open to change in the present competitive scenario

Welfare
Improving the life of its employees both organization as
well
as outside the organization.

26

Subsidiaries:Tata Construction equipment company Ltd.(TELCON):- Its principal

business is manufacture and sale of construction, material handling and
earthmoving equipment.
Tata technologies Ltd.:- It oversees the IT requirements of Tata
engineering and provides services for SAP implementation;CAD/CAM
based design and e-commerce facilities to customers in India and abroad.
Seba properties Ltd.:- It is an investment and finance company and a
wholly owned subsidiary of tata engineering since its inception. It is
registered with RBI as a non Banking finance company.
Telco Dadajee Dhakjee Ltd. (TDDL):- It is an investment and finance
company and proposes to undertake activities pertaining to the sales and
services of tata engineerings vehicles and spare parts.
Minicar (India) Ltd.:- Formerly known as Mazda Industrial chemicals
Ltd., this company was incorporated on January 18, 1972 and is currently
engaged in the business of automobile sales and services.
HV Transmission Ltd.:- It was incorporated on March 13, 2000 with the
objective of acquiring the Heavy- Duty Gear Box Division of Tata
engineering at Jamshedpur as a going concern. It supplies transmissions
and their parts to Tata engineering against purchase orders raised by Tata
engineering on HVTL.
HV Axles Ltd.:- It was incorporated on March 13, 2000 with the
objective of acquiring the Heavy duty axle division of Tata engineering at
Jamshedpur as a going concern. It supplies axles and their parts to Tata
engineering against purchase order raised by Tata engineering on HVAL.
Telco Automation Ltd.:- It was incorporated on March 13, 2000 with the
objective of acquiring the machine tool and growth division of tata
engineering as a going concern. As and when required, tata engineering
sources factory automation equipment from TAL.
Tata Technologies, USA : - It was incorporated on August 22, 1999 and
became a wholly owned subsidiary of Tata technologies limited on
December 22, 2000. The company is engaged in the business of computer
consultancy and related services.
27

Tata Motor finance: - Tata Motor finance is the auto financing arm of Tata
Motors, providing finance primarily for Tata Motors vehicles. It was
established in June 2003, through the joint marketing arrangement,
between Tata Motors' Bureau for Hire Purchase and Credit (BHPC)
division, and Tata Finance's Asset Financing arm. It became a division of
Tata Motors in April 2005, with the merger of Tata Finance with Tata
Motors.

Strategic alliances:Tata engineering has several joint ventures and alliance. These included
Tata Cummins Ltd.:- A joint venture with Cummins engine company inc.,
USA, makes fuel efficient, low emission, environment friendly diesel
engines.
Tata Holset Ltd.:- A joint venture with Holset engineering company, UK,
makes turbochargers for diesel engines manufactured by Tata Cummins
Ltd. and other OEMs.
Concorde Motors Ltd.:- A joint venture with Jardine International Motors
(Mauritius) for dealership of passenger vehicles. Concorde has dealership
for Tata engineering passenger vehicles in Delhi, Mumbai, Bangalore,
Ludhiana, Hyderabad, Chennai and Lucknow.
Tata precision Industries Pvt. Ltd.:- Singapore for the manufacture and
sale of high precision tooling as well as electronic and plastic components
for the computer industry.
Tata Engineering Services Ltd.:- Singapore, for the sale of spare parts for
tata vehicles.
Nita company Ltd.:- Bangladesh, for the assembly and sale of the tata
commercial vehicles.

RESEARCH AND DEVELOPMENT

TATA MOTRORS with 1,400 engineers and
scientists, the company's Engineering Research
Centre, established in 1966, has enabled
pioneering technologies and products. The
28

company today has R&D centers in Pune, Jamshedpur, Lucknow, in

India, and in South Korea, Spain, and the UK.
Tata Motors invest up to 1.3% of its total
turnover on research and development, with an emphasis on new
product/aggregate development and technology up gradation.
The company also draws on the resource of leading international design
styling house like Institute of Development in Automotive Engineering,
SPA and Italy.
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.

29

INTRODUCTION
TO
PROJECT

DEVELOPING
MARKETING
STRATEGIES FOR
INCREASING THE SALE
OF LIGHT COMMERCIAL
VEHICLES
OF
TATA MOTORS

PROBLEM DEFINITION

30

A marginal decrease in the market share of TATA MOTORS in the light

commercial vehicle sector in Jharkhand.

OBJECTIVE OF THE STUDY

1.

To develop marketing strategies for increasing the sale of TATA

MOTORS light commercial vehicles in Jharkhand.

2.

To evaluate critically market acceptance of Tata Motors (L.C.V)

products.

3.

To identify the market acceptance of TATA 407, 709, 909, 1109

4.

To find out the customers perception on different attributes of the

products .

5.

To identify the factors which can affect the sales of the above
mentioned vehicles.

6.

To analyze the strength and the weakness of the Tata motors in the
L.C.V sectors and its competitors.

7.

To acquire knowledge about the different financer and their term

and conditions.

8.

To analyze the channels of distribution.

SCOPE OF THE STUDY

31

Scope of the study covers a wide range of theoretical application and

administrative aspect, under which product reaches from the producer to
the ultimate consumer.
The objective is mainly to find the true value of business activity of the
firm. Finally, it will be concluded after successful completion of the
studies in respect of fruitful implementation of the knowledge.
The present study aims to analyse the existing practices in market by Tata
Motors and its competitors and to suggest any modification if required in
the marketing strategy to increase the market share in the Jharkhand.
We can primarily be concluded its scope under following heads: To know the level of customer satisfaction.
To study the market share of each company.
The impact of various promotional activities of the companies.
Comparative study of the strategies applied by the competitors
Increasing sales volume of the products.
Analyzing the marketing mix

RESEARCH DESIGN

32

The study was exploratory type at the beginning because much was not
known about the dealers and the customers but at the later stage it was a
descriptive type because it depicts characteristics or functions of the
market. It describes the number, distribution and socio-economic
characteristics of potential customer for the product. The study was
undertaken to answer the following research questions.
1)

What are the demographic and socio-economic characteristics of

primary member?

2)

How extensively vehicles are used and the attributes towards such
vehicles.

3)

What will be the interest for the new upgrade vehicle?

4)

How can be distribution channel more effective.

5)

In which of the basic features TATA needs to be work on.

RESEARCH METHODOLOGY
First of all an exploratory study was conducted with the
help of a pilot questionnaire with a sample size of 10 in order to
know the various attributes differentiating the different models
of LCV in this competitive market. Based on the findings of the
study a descriptive study was conducted.
The survey was conducted by
taking in-depth interview of dealers of the four companies along with
fleet owners and staffs of the LCV. Datas were also collected from the
regional transport office to know which vehicle has sold the most in
which city in the last fiscal year 2006-07 ending march 31st.

TOOLS USED FOR DATA

COLLECTION

33

DATA SOURCES

PRIMARY DATA

SECONDARY DATA

INDEPTH TELEPHONIC QUESTIONNAIRE

INTERVIEW

RTO

NEWSPAPERS
JOURNAL

REPORTS
INTERNET

PAMPHLETS

Statistical Tools used for analysis

1. Bar diagram
2. Pie charts
3. Tables

Sample size
The total sample size was 142.
APPROACHES TO DATA COLLECTION

34

The approach to data collection was survey method. Survey is conducted

through questionnaire .The questionnaires are comprised of both open
ended and close-ended question. Close-ended questions are used to bring
objectives to the survey and to bring forth the answers needed elaborating
open-ended question were used, so that respondents can express their
views clearly without any binding of format.

AREA COVERED FOR THE STUDY

Tatanagar
Ranchi (capital )
Hazaribagh
Dhanbad

ORGANIZATIONAL STRUCTURE
35

The figure above shows the organizational hierarchy which is related with
the working of the Area office with other departments. The project was
conducted in the Area office which primarily deals with the Marketing
and sales of the commercial and passenger Vehicles.

AREA OFFICE
NEW
DELHI
,CHANDIGHAR,
LUCKNOW,
JAIPUR,
TATA
MOTORS
LTD
DEHRADUN,
LOB
HYDERABAD,VIJAYWADA,CHENNAI,BANGALORE,
AHMADABAD,
INDORE, JAMSHEDPUR,
RAIPUR, NAGPUR,
CVBU
PCBU
LOB
PUNE,
MUMBAI,
KOLKATA,
PATNA,
GUWAHATI,
LOB
LOB
BHUWANESHWAR
M&H CV

LCV/ICV

SCV

16 TON 4 TON

LCV 4 - 7 TON

25 TON + HAVIES

ICV
9 11 TON

TRUCK
TRIPPER
TRAILER

BUS

INDICA

TATA MOTORS PRODUCT LINE

207 DI

I MCV
11 15 TON

ACE

LCV
4T 7 T

ACE PLATFORM

36
SOME NEW
VEHICLES COME
SOON

THE ABOVE FIGURE SHOWS US THE PRODUCT LINE OF

TATA MOTORS LTD

DISTRIBUTION CHANNEL
Name & Address of the Dealers Tel / Fax / Cable / e-Mail in
Jharkhand
Mr. R. P. Kamani
ENAR INDUSTRIAL ENTP. LTD.
WESTERN AVENUE, BOKARO

Tel.:'06542-247696 /
247684; 9431180444
37

STEEL CITY DHANBAD - 827 001

Jharkhand
E-mail.: kamanirp@hotmail.com

Fax.06542-242915
Cable: ENARCO

Mr S. P. Sinha
JMA STORES LTD.
15, 16 PALIKA MARKET, NEAR BUS STAND Tel.:0326- 2303794 /
HAZARIBAGH - 825 301
2303018;
Jharkhand
9835184669
Fax.0326-2303794
Mr R. P. Choudhary
JMA STORES P. LTD.
247641
JHARIA ROAD, DHANSAR
06546DHANBAD - 828 106
Jharkhand

Tel.:06542/ 247772;
09835149711
Fax.:246977
e-mail.:

jmajsr111@rediffmail.com
Mr. Bipin Parikh / Mr. Diloo B. Parikh
MITHILA MOTORS LTD.
A-3, 2ND PHASE, ADITYAPURTel.:0657-2407595 /
KANDRA MAIN ROAD
2409159 / 2409961
JAMSHEDPUR - 831 013
09835199324/9334658600
Jharkhand
Fax.0657-2200646
e-mail.: mithilamotors@tatanagar.com

A MICRO PERSPECTIVE ON
COMMERCIAL VEHICLE SECTOR
Global demand for truck is largely cyclic and the stage of cycle is related
to the prevailing macro economic conditions. The economies are more
interconnected now than ever before.
Value chain profitability: A series of cost reduction and restructuring
programmes have been undertaken. The business has now been redefined
from one that was historically associated with manufacturing buses to one
38

which encompasses all the aspects of providing means of transportation

and conveyance by road.
Indian scenario: In developing countries such as India, the commercial
vehicle sector is broadly classified into light commercial vehicles
(LCVs) with gross vehicle weight (GVW) upto 7 tonnes and pay load
upto 11 tonnes
The key to growth in India is the development of the transport
infrastructure. The political environment is pushing for significant labor
benefits and investment to aid development of both the industrial and
transport infrastructure. This would seem to be a major factor in fuelling
demand for buses over the next decade.
Government policies: The commercial vehicle sector is controlled by the
government policies on depreciation norms, diesel pricing and the motor
vehicles act. Change in depreciation norms will significantly affect the
demand for vehicles as they provide tax shelter to operators.
The motor vehicles act that came into effect in July 1989, intended to
streamline laws related to emission norms, maximum age of vehicles,
restructuring on payload and other safety measures. However overloading
practices still prevail. The pricing of commercial vehicles to a great
extent depends upon excise duty which was rationalized to 16% in 20012002 budget.
Infrastructure key growth driver: In the long term, the long haul market
will shift towards medium and heavy multi axel vehicles following
closely the trends in developed countries. M&HCVs are used for
transport of heavy commodities such as steel, cement and fertilizers.
LCVs are preferred for high volume, low bulk cargo such as consumer
goods and textiles for short distance haulage.
The commercial vehicles apart from being highly capital intensive are
characterized by strong entry barriers, which include requirement of
strong distribution/after sale service network, vendor/ancillary network,
long gestation period and technological adoptions to peculiar Indian
conditions.
Due to these barriers, the significant threats from MNC ventures.
The product life cycle for a commercial vehicle has new product launches
to retain market share. New products that cater to niche consumer
segments have also increased the marke4t segments. High ancillarisation
is an integral feature of the industry.
39

Legislation: Environmental legislation have made a significant impact on

the development of vehicle technology and the exhaust gas and
particulate structure of the industry since the early 1980s, particularly
with regard to emission and safety.
Emission norms: India is implementing emission norms in two phases.
Bharat stage 1 (EURO 1) norms were implemented in 1996 and Bharat
stage 2(EURO 2) norms came into effect from October 1, 2001.
Future trends: The new product launched in recent times emphasize the
increasing customer expectations in terms of total solution to their needs,
assured quality deliveries value for money and ready to use products.
Technological up gradation: Todays customer is happy with low cost
technology and is not worried by uptime issues. Technological up
gradation will be key activities for CV manufacturers and with need to
focus on cost, weight, safety and noise suppression technology
forecasting skills are gaining prominence and vehicles manufacturers are
channeling their efforts in these areas to remain competitive. Value added
services: The current scenario with factors such as good damage,
haphazard pricing of freight movement, no adherence to schedules, lack
of quality services and no collaboration transportation for express/small
cargo business provides immense opportunities.

The
Main Competitors
Of
TATA MOTORS
In LCV sector are:Ashok Leyland
40

Mahindra& Mahindra

Either
The origin of Ashok Leyland can be traced to the urge for selfreliance, felt by independent India. Pandit Jawaharlal Nehru, India's first
Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to
enter automotive manufacture. In 1948, Ashok Motors was set up in what
was then Madras, for the assembly of Austin Cars. The Company's

41

destiny and name changed soon with equity participation by British

Leyland and Ashok Leyland commenced manufacture of commercial
vehicles
in
1955.
Since then Ashok Leyland has been a
major presence in India's commercial vehicle industry with a tradition of
technological leadership, achieved through tie-ups with international
technology leaders and through vigorous
in-house
R&D.
Access to international technology
enabled the Company to set a tradition to be first with technology. Be it
full air brakes, power steering or rear engine busses, Ashok Leyland
pioneered all these concepts. Responding to the operating conditions and
practices in the country, the Company made its vehicles strong, overengineering them with extra metallic muscles. "Designing durable
products that make economic sense to the consumer, using appropriate
technology", became the design philosophy of the Company, which in
turn has moulded consumer attitudes and
the brand personality.
Ashok Leyland vehicles have built a
reputation for reliability and ruggedness. The 5,00,000 vehicles we
have put on the roads have considerably eased the additional pressure
placed on road transportation in
independent India.
In the populous Indian metros, four out of the five State Transport
Undertaking (STU) buses come from Ashok Leyland. Some of them like
the double-decker and vestibule buses are unique models from Ashok
Leyland, tailor-made
for high-density
routes.
In 1987, the overseas holding by Land Rover Leyland International
Holdings Limited (LRLIH) was taken over by a joint venture between the
Hinduja Group, the Non-Resident Indian transnational group and IVECO.
(Since July 2006, the Hinduja Group is 100% holder of LRLIH).
The blueprint prepared for the future reflected the global ambitions of the
company, captured in four words: Global Standards, Global Markets. This
was at a time when liberalization and globalization were not yet in the air.
Ashok Leyland embarked on a major product and process up gradation to
match world-class standards of technology.
In the journey towards global standards of quality, Ashok Leyland
reached a major milestone in 1993 when it became the first in India's
automobile history to win the ISO 9002 certification. The more
comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998
and ISO 14001 certification for all vehicle manufacturing units in 2002. It
has also become the first Indian auto company to receive
the latest ISO/TS 16949 Corporate Certification (in
July 2006) which is specific to the auto industry.

42

Ashok Leyland has six manufacturing plants - the mother plant

at Ennore near Chennai, two plants at Hosur (called Hosur I and Hosur II,
along with a Press shop), the assembly plants at Alwar and Bhandara. The
total covered space at these six plants exceeds 450,000 sq m and
together employs over 11,500 personnel.

MANUFACTURING PLANTS
ENNORE
HOSUR: UNIT 1
HOSUR: UNIT 2
HOSUR: UNIT 2A
ALWAR
BHANDARA

The birth of Mahindra & Mahindra began when K.C. Mahindra visited
the United States of America as Chairman of the India Supply Mission.
He met Barney Roos, inventor of the rugged 'general purpose vehicle' or
43

Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its
invincibility on the battlefields of World War II be ideal for India's rugged
terrain and its kutcha rural roads?
Swift action followed thought. The Mahindra brothers joined hands with
a distinguished gentleman called Ghulam Mohammad. And, on October
2nd, 1945, Mahindra & Mohammad was set up as a franchise for
assembling jeeps from Willys, USA.
Two years later, India became an independent nation and Mahindra &
Mohammad changed its name to Mahindra & Mahindra. Ghulam
Mohammad migrated to Pakistan post-partition and became the first
Finance Minister of Pakistan.
Since then, Mahindra & Mahindra has grown steadily in size and stature
and evolved into a Group that occupies a premier position in almost all
key sectors of the economy. The Group's history is studded with
milestones. Each one taking the Group forward. In fact, today, its total
turnover is about 4* billion dollars.
These days, Mahindra is a group in a hurry, engaged in an ambitious,
sustained and prolonged penetration into the global arena. Its spirit can be
encapsulated in the words of the poet Robert Frost, a favorite of India's
first Prime Minister, Pandit Jawaharlal Nehru:

"The woods are lovely, dark and deep,

But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep. "

For Mahindra & Mahindra, this translates into many more milestones to
be set up before it rests. If ever.
The Company's current Board of Directors is as follows:
1.
Mr. Keshaun Mahindra
(Chairman)
2.
Mr. Anand G. Mahindra
(Vice Chairman and Managing
Director)
3.
Deepak Shantilal Parekh (Director)
44

4.
5.
6.
7.
8.
9.
10.
11.
12.

Nadir Burjorji Godrej

(Director)
M. M. Murugappan
(Director)
Bharat Narotam Doshi
(Executive Director)
Arun Kumar Nanda
(Executive Director & Secretary)
Narayanan Vaghul
(Director)
Dr. Ashok Sekhar Ganguly (Director)
R. K. Kulkarni
(Director)
Anupam Pradip Puri
(Director)
Thomas Mathew T.
(Nominee of LIC)

Eicher Motors was founded in 1982 to manufacture a range of reliable,

fuel-efficient commercial vehicles of contemporary technology. The

45

unit manufactures and markets commercial vehicles with Gross Vehicle

Weight (GVW) ranging from 5-25 tons.
Today, Eicher Motors is one of the
leading manufactures of commercial vehicles in India with a 33% market
share in the 7T-11T segment. The success and growth of this unit is a
result of various customer- driven strategies. The manufacturing
facility is situated in Central India Pithampur, Madhya Pradesh.
Eicher
Motors has stepped into the Heavy Commercial Vehicle
segment with its state-of-the-art HCV, the "Eicher 20.16", the first
commercial vehicle designed and developed indigenously.
Eicher Motors functions through a strong threetier service network consisting of authorised distributors, service centres
and company trained private mechanics. The vehicles are sold and
serviced through a network of over 576 Authorized Contact Points all
over India, supported by service centres and over 4500 company trained
private mechanics, who are close at hand on all major highways
throughout India to provide initial "first aid" to the vehicles if required.
In 1986, Eicher Motors
entered into a technical and financial collaboration with Mitsubishi Motor
Corporation of Japan to manufacture the Canter range of vehicles. The
technical assistance agreement with Mitsubishi ended in March 94 after
successful transfer of technology and on achieving total indigenisation
with only a few parts sourced globally.

Eicher Motors has acquired formidable expertise in designing and

developing commercial vehicles. It has a world-class R&D centre
manned by a team of brilliant engineers and equipped with latest
Computer Aided Design (CAD) and Computer Aided Engineering
facilities like NASTRAN, FEM analysis packages. Leveraging its inhouse expertise, this unit has successfully developed a wide range of
commercial vehicles to meet varying customer needs. The product range
includes Trucks : Eicher 10.50, Eicher 10.75, Eicher 10.90, Eicher 11.10,
Eicher 20.16 & 30.25; Buses: Eicher Skyline, Eicher Cruiser and Eicher
School Bus range of buses. Besides the basic models, it offers over 85
models of ready-to-use custom-built vehicles for various specialized
applications. Eicher Motors products have been well accepted in the
46

market. This is also demonstrated by significant sales of its commercial

vehicles in export markets where the company competes with reputed
international brands.

47

&
ANALYSIS

48

CABIN COMFORT LEVEL

62% of the tata motors customers are satisfied with the cabin comfort
level but side by side 8% of the customer are not so much satisfied with
it, which is less in the case of M&M and Ashok Leyland which are its
main competitors

49

STABILITY

In this TATA MOTORS is leading the market followed by M&M,

ASHOK LEYLAND and Eicher respectively.

HIGH LOAD CAPACITY

50

In high load capacity Ashok Leyland is ahead of Tata Motors with 80%
totally satisfied which is 49% in the case of Tata motors.

MAINTANANCE COST

51

In this TATA MOTORS is lagging behind of M&M strongly. M&M

leads the market in case of maintenance cost

.PROFITABILITY

52

In case of profitability 49% of tata motors customers feels that TATA

MOTORS much more profitable for the business than other companies
,but 8% feels that it is not so that is because of high maintenance cost.

53

RELIABILITY

In reliability ASHOK LEYLAND in leading the market followed by

TATA MOTORS, M&M respectively

54

AVAILABILITY OF SPARE PARTS

In case of availability of spare parts 90% of TATA MOTORS

CUSTOMERS thinks that Tatas spare parts are available every where. In
case of its competitors these facility is not available.

AFTER SALES SERVICE

55

IN CASE OF AFTER SALE & SERVICE TATA MOTORS IS FAR

BEHIND FROM THE SATISFACTION LEVEL OF THE CUSTOMERS
ACHIVED BY EICHER, M&M.

SATISFACTION LEVEL

56

64% of TATA MOTORS customers are totally satisfied with it, 25%says
that they are some what satisfied and 8% are neutral.

MILEAGE

57

TATA MOTORS leads in mileage with 37% totally satisfied followed by

M&M with 6% totally satisfied.

FINDINGS

58

 In Jharkhand TATA MOPTORS leads the market with 92%

share

in LCV sector.
Its main competitor is mahindra and mahindras 3200 di, which is
taking over TATAS 407 model. Presently it is estimated to be
holding 3-4 % of market share.
The cost of TATA MOTORS spare parts is high compared to its
competitors.
The sale of TATA MOTORS is increasing consistently though its
market share has fallen marginally in Jharkhand.
The brand image of TATA is proving to be the driving force behind
its sales.
Organizing customer meet is quite helpful in determining the
technical problems in the vehicles.
Experienced sales executives are leaving the company getting
attracted by high incentives offered by the competitors.
LCV volumes increased 20.3 % to 24,254 units all over India for
year ending March 2007.
The percentage of LCV in TATA MOTORS product mix has
increased marginally over passenger vehicles.

59

CVs Leading the pack

CV volumes grew 13% YoY in March 07 to 55,220 units. Domestic
volumes rose 13.2% YoY to 49,245 units and exports increased 11.7%
YoY to 5,975 units. Among various sub-segments, M/HCV volumes rose
7.9% YoY to 30,966 units and LCV
Volume increased 20.3% YoY to 24,254 units.

Winners and losers.

TAMO continued to be the market leader with 61.3% market share (up
90bps YoY); however, ALL lost market share by 220bps to 27.5%. M&M
registered a 420bps market share gain to 24.1% in LCVs.

TAMOs total CV volumes grew 25.1% YoY to 35,078 units. Further,

domestic sales rose 12.3% YoY to 30,720 units and exports increased
10.3% YoY to 4,358 units. M/HCV volumes increased 10% YoY to
19,083 units domestic sales for the segment rose 8.3% YoY to 17,673
units and exports surged 36.1% YoY to 1,410 units. LCV volumes, too,
rose 15.1% YoY to 13,047 units on the back of continued buoyancy in the
demand for the mini-truck ACE domestic sales of the LCV segment

60

increased 18.8% YoY to 13,047 units and exports rose 1.1% YoY to 2,948
units
.
ALLs volumes dipped 1.6% YoY to 8,444 units on the back of a 1.9%
YoY decline in domestic volumes to 7,936 units even as exports rose
marginally 3.7% to 508 units. Among various segments, volumes for
M/HCV goods segment declined 1.9% YoY to 6,773 units in March 07.
M/HCV passenger segment volumes rose 4.9% YoY to 1,671 units.

M&Ms LCV volumes grew 45.6% YoY to 5,529 units in March 07.
Further, domestic sales increased 50.4% YoY to 4,934 units and exports
rose 15.1% YoY to 595 units. M&Ms market share in the LCV segment
rose 420bps to 24.1%.

61

It is clear from the above charts that the volume growth of Commercial
Vehicles (C.V) has increased by 13.1% from FY05 as the market share
and the volume of sale has increased consistently. So opportunity always
lies for TATA MOTORS.

62

PRODUCT MIX OF TATA MOTORS.

From this diagram it can be seen that the percentage of commercial

vehicles has increased in the product mix of TATA MOTORS so its C.V
(M/HCV & L.C.V.) plays an important role in the process of gaining
market share in the competitive market.

63

Technical Specs 407 EX

ENGINE
POWER
TORQUE
FIP
CLUTCH
GEAR BOX
BRAKE
TYRES
GVW
PAYLOAD (TONS)

Cab
Air Filter

: TATA 497SP TURBO (BHARAT STAGE-II)

: 75 PS @ 2800 rpm
: 23mkg@ 1500-1800rpm
: Mechanical Rotary-MICO
: Single plate dry friction type, 240 mm dia
: G18.M Synchromesh, 5 F, 1 R
: Vacuum assisted dual circuit hydraulic with
tandem master cylinder.
: 8.25 x 16 -16PR
: 5.7(SFC) 6.25(LPT)
:3.6(SFC) 3.8(LPT)

FEATURE
SFC EX
LPT
Dry Type

BENEFIT
Enhanced Safety;Easy Maintainability

C channel (180 mm)

Chassis frame
Tyre

8.25x 16 16 PR

Wheel Hubs

Rear - Lug, Front Rib

Spigotted with M16 axle
shaft bolts
Polyester

Paint

EX-Deluxe
CABIN

Gap Seat
Tinted Band
Windscreen

on

Less Maintenance
Lower Cost as no need to regularly change
oil
Reinforced Chassis provides higher
durability

Special Anti-Corrosion treatment gives a

long life.
Bigger and more rugged tyres give better
load carrying capacity and tyre life on
Indian roads.
Higher Tyre & Rim life.
No bolt loosening even under overload
Higher Initial Gloss
Longer Gloss retention - increases resale
value
For resting during waiting hours
Protects against sun glare.
Better cabin ventilation

64

 Rear Sliding Glass

Driver Seat

Magazine/Bottle
Pocket Holder
4-way adjustable

Ample space to keep things

Superior Ergonomics
Higher Comfort
For resting during waiting hours
Higher Saving
Better Warranty coverage

GVW
Payload(kgs)

Gap Seat
Excellent
3 year / 3 lakh km
Cab Chassis
Cab Load body
Cab High Deck
Load body
Cowl
Chassis(SFC407)
6250 (LPT) / 5700 (SFC)
3830
/
3626

Engine

4 SP Turbo (BSII)

Superior Technology
Superior Fuel Combustion, Better Fuel
Average

Power

75 PS @ 2800rpm

Better pickup and acceleration

Torque

23 mkg @ 1500-1800
rpm

Gear box

G18.M-Six speed gearbox

(5- F & 1-reverse)

Resale Value
Warranty

Options
Available

65

Wide choice to the customer

Higher load carrying capacity

Max torque is at lower RPM, giving better

engine life
A flat torque means less number of gear
shifts and therefore higher driver comfort

More speed, less trip time, smoother ride

Technical Specs LPT 709 EX

ENGINE
II)
POWER
TORQUE
FIP
CLUTCH
dia
GEAR BOX
BRAKE
TYRES
GVW
PAYLOAD(TONS)

: TATA 497 TURBO (BHARAT STAGE: 90 Ps @ 2400 rpm

: 33mkg@ 1300-1600 rpm
: Mechanical Rotary-MICO
: Single plate dry friction type, 280 mm
: GBS 27 Synchromesh, 5 F, 1 R
: Dual circuit full air S-Cam brake
: 7.50X16, 16PR
: 7490
:4.7
FEATURE

GVW

7490

Payload(kgs)

4730

Engine

BENEFIT

Higher load carrying capacity

497 Turbo (BSII)

Superior Technology

Power

Superior Fuel Combustion, B

Fuel Average

90 PS @ 2400rpm

Better pickup and acceleration

33 mkg @ 1300-1500
rpm

Max torque is at lower RPM, gi

better engine life

A flat torque means less numbe

gear shifts and therefore higher dr
comfort
Gear box

GBS-27Synchromesh
(5- forward & 1-reverse)

66

More speed, less trip time, smoo

ride

Cab

SFC
LPT

Enhanced
Maintainability
Longer Deck Length

Dry Type

Less Maintenance

C
channel
(Depth-200 mm)

Lower Cost as no need to regu

change oil
Reinforced Chassis provides hi
durability

Special Anti-Corrosion treatm

gives a long life.

7.5 x 16 16PR

Bigger and more rugged tyres

better load carrying capacity and
life on Indian roads.

Safety,E

Air Filter

Chassis frame

Tyre

Rear - Lug, Front Rib

Wheel Hubs

Paint

Spigotted with M16 axle

shaft bolts

Higher Tyre & Rim life.

No bolt loosening even u
overload

Polyester

Higher Initial Gloss

Longer Gloss retention - incre

resale value
For resting during waiting hours

EX-Deluxe CABIN

Gap Seat
Tinted Band
Windscreen

on

Protects against sun glare.

Better cabin ventilation

Rear Sliding Glass

Ample space to keep things
Magazine/Bottle
67

Pocket Holder
4-way adjustable

Driver Seat

Gap Seat
Resale Value

Superior Ergonomics
Higher Comfort
For resting during waiting hours

Excellent

Higher Saving

3 year / 3 lakh km

Better Warranty coverage

Warranty

Options Available
Cab Chassis
Cab Load body
Cab High Deck
Load body
Cowl Chassis

Wide choice to the customer

Technical Specs LPT 909 EX

ENGINE
STAGEII)
POWER
TORQUE
FIP

TATA

497

TURBO

: 90Ps @ 2400 rpm

: 31mkg@ 1500-2000rpm
: Mechanical Rotary-MICO
68

(BHARAT

CLUTCH
mmdia
GEAR BOX
BRAKE
TYRE
GVW
PAYLOAD (TONS)

: Single plate dry friction type, 280

: GBS-27 Synchromesh, 5 F, 1R
: S-Cam air Brakes with LCRV.
: 8.25X16 16PR
: 9600
:6.6

Technical Specs LPT 1109 EX

ENGINE
POWER
TORQUE
FIP
CLUTCH
GEAR BOX
BRAKE
TYRES
Rear
GVW
PAYLOAD (TONS)

: TATA 497 TURBO (BHARAT STAGE-II)

: 90Ps @ 2400 rpm
: 31mkg@ 1400-2000rpm
: Mechanical Rotary-MICO
: Single plate dry friction type, 310 mm dia
: GBS-40 Synchromesh, 5 F, 1 R
: S-Cam air Brakes.
: 8.25 X 20 -14 Ply - Front, 8.25 X 20 -16
: 11900
:8.3

69

PRICES OF THE PRODUCTS.

SL

PRODUCT

MODEL

PRICE (Rs.)

LINE
1
2
3
4

SFC407 TRUCK
SFC407 TRUCK
SFC407 TRUCK
LPT 709

SFC407/31 CLB EX BSII

SFC407/31 HD EX BSII
SFC407/31 CAB EX BSII
LPT709

5,16,898
5,28,704
5,12,481
6,52,012

EX/38WB,CLB,497TCICBSII
5

LPT 709

MECH,STR
LPT709

6,22,276

EX/38WB,CAB,497TCICBSII
6
7
8
9
10
11

LPT 909
LPT 909
LPT1109
LPT1109
LPT1109
LPT1109

MECH,STR
LPT 909/38CLB BSII
LPT 909/38CAB BSII
LPT1109/36CLB EXBSII
LPT1109/36CAB EXBSII
LPT1109/42CLB EXBSII
LPT1109/42CAB EXBSII

TATA MOTORS NETWORK IN

INDIA

70

7,09,078
6,79,343
7,46,641
7,24,714
7,25,509
7,62,317

Main
Dealer
Branch
Dealer
Telc Authorise Service
d
o
Station

DETAILS ABOUT JHARKHAND

71

SALES PROMOTIONS
The Promotion element of marketing mix communicates the
customers for their solution. Hence, promotion to the design and
manage the marketing mix element to inform perused and remind
current and potential customer. There are five forms of promotion

72

Personal selling
Adverting
Sales Promotion
Public Relations
Publicity

In our survey I have found that the tata motors mainly focuses and
put stress more on sales promotion, public relation than the rests.
1. Tata motors provides discounts such as in the month of March
2007 it has provided the following discount

Tata 407 --- cash discount Rs. 50,000

Tata 709 --- cash discount Rs. 20,000
Tata 909 --- cash discount Rs. 20,000
Tata 1109 --- cash discount Rs. 20,000

And so on
The amount of discount may change from time to time.
2. Various financing schemes are run by tata motors from time to
time in collaborations with various financial institutions to provide
easy and flexible financing facility to its customers.
3. Free after sales service.
4. Various exchange offers are provided to the public, in which people
can exchange there old vehicles with brand new ones
5. Various camps are also conducted to provide free demonstrations
to the public
6. TMF offers range of refinance products to suit the need of its
customers.
Available for vehicles from 0-8 years of age for loan duration of
12 to 48 months. All this with TMF advantages of faster loan
disbursals, attractive interest rates and flexible terms.
REFINANCING is available for:
73

1) SALARIED INDIVIDUALS
Eligibility Criteria:- Minimum age of Applicant: 21 years
- Maximum age of Applicant at loan maturity: 60 years
- Minimum employment: 1 year from date of joining
Documents required:Proof of Identity:Passport , Photo Credit Card, PAN Card, Voters Id car, driving license,
Employee ID issued by Government of India, PSU, Limited companies,
Local Panchayat ID card, Notary certification with Photograph.
Income Proof: Latest salary slip with form 16.
Address Proof: Lease Agreement, Ration card, Driving license, House Tax Challan,
Housing Society Bill, Voters card, passport, telephone bill, electricity bill,
Water Tax Challan, Telephone Bill / WLL Connection, Credit Card
Statement, Post Paid mobile bills (2 bills required bill of the last
completed month and of 6 month before the last completed month), PAN
Card, Bank Certification / Statement duly certified by the bank in
original, Gas Connection Bill.

2.) SELF EMPLOYED Eligibility Criteria:- Minimum age of Applicant: 21 years

- Maximum age of Applicant at loan maturity: 70 years
- Minimum employment: At least 2 years in business

74

Documents required:Proof of Identity:Passport, PAN Card, Voters Id car, driving licence,Latest Sales tax
assessment order, Sale tax registration certificate.
Income Proof: Latest ITR.
Address Proof: The documents collected towards identity proof to reflect the current
address of the concern/firm.
3.) PARTNERSHIP FIRMS Eligibility Criteria/Documents required:Proof of Identity:Partnership deed, Shop & Establishment Act certificate, Latest Sales tax
assessment order, Sale tax registration certificate.
Income Proof: Audited balance sheet, Profit & loss Account for latest two years and the
latest 2 years IT returns of the company.
Address Proof: The documents collected towards identity proof to reflect the current
address of the concern/firm.
4.) PARTNERSHIP FIRMS Eligibility Criteria/Documents required:Proof of Identity:MOA & AOA (with registration certificate).
Income Proof: -

75

Audited balance sheet, Profit & loss Account for latest two years and the
latest 2 years IT returns of the company.
Address Proof: The documents collected towards identity proof to reflect the current
address of the concern/firm.

SWOT ANALYSIS
(A THEORETICAL ASPECT )
This is the technique that plays a very crucial role at the time of making
policy and strategy regarding a particular field. Almost, all the companies
adopt this technique and review it time to time for making their strategies
more effective so that they achieve their smoothly.

76

Actually, the term

SWOT consists of four letters and all the letters represent its own
attributes as follows:-

S (Strength): this is the present the most strongest and favorable

condition for the smoothly running of business and almost most of the
purchasers buy its product by considering these strengths.

W (Weakness): this is the attribute which require more attention for

correction and it deviate the purchasers from buying the products.

O (Opportunity): A marketing opportunity is an area of buyer need in

which a company can perform profitably. In other words, it presents the
plate form for expanding the business.

T (threats): An environmental threat is a challenge posed by an

unfavorable trend or sales or profit.
(Opportunity and Threat Analysis)
In general, a business unit has to monitor key
environment forces (demographic economic, technological, political-legal
and social-cultural)and significant microenvironment actors (customer,
competitors,distributors,suppliers) that affect its ability to earn profits.The
business unit should set up a marketing intelligence system to track trends
and important developments.For each trend or development, management
needs to identify the associated opportunities
andthreat(Strenths/Weaknesses Analysis)
It is one thing to discern
attractive opportunities and another to have the competencies to succeed
in these opportunities. Each business needs to evaluate its internal
strengths and weaknesses periodically. It can do so by using a form like
the one shown management-or outside consultant- competencies and rates
each factor as a major strength, minor strength, neutral factor, minor
weakness, or major weakness.

Now we want to analyze the SWOT in context of TML as

follow:-

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Strengths: 1. Good availability of parts everywhere. It means spare parts of TML

available in any place.
2. Availability of service center in large number by which transporters
dont have any problem.
3. Its engine consumes less energy so only 12 volt battery is enough.
4. Good resale value of TATAS vehicle so they purchase these vehicle
and original parts they used in these vehicles.
5. Knowledge about parts and engines is easier for mechanics of TATAS
vehicles.
6. All the parts are available in TATAS retailer but not available in Ashok
Leylands retailer.
7. Quality of motor parts no doubt is very good.
8. Always prefer original parts because you never want to send your child
in inferior school.

Weakness:1. High price of part about 10% higher price to other competitor.
2. There are various companies which make duplicate of TATAS parts ,
other than quality every thing is as same as you confused that it is
original or not. For e.g. Alfas gear box is very confuging.
3. Main suppliers of Tata motors parts are its main competitors.
4. Boring is requiring up to 5 years in engine so, transporters require
improvement in engine quality.
5. More consumption of oil. Further it requires some improvement in
parts so that engine may improve in quality and service providing.
6. some times old parts of Tatas vehicle are also resale by some
companies in new pack by some technical works.
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7. Not very good carrying power of in single gear of Tatas vehicle.

8. Even you want to purchase the original parts but duplicates are so
similar; you are cheated by retailer in new places.

Opportunity:1. The best performing company will be the one that can generate the
greatest customer value and sustain it over time.
2. There is big market or expanding the business of motor parts.
3. There are not such the competitors who have monopoly in any product
line and at most all the company in growing stage that open the door for
expanding the market share of TML spare parts.

Threats:1. Threat of intense segment rivalry: - These conditions will lead to

frequent price wars, advertising battles, and new products introductions
and will make it expansive to complete.
2. Threat of new entrants: - A segments attractiveness varies with the
height of the entry and exist barriers. The most attractive segment is one
in which entry barriers are high and exit barriers are low. Few new firms
can enter the industry, and poor performing firms can easily exit, when
both entry and exit barriers are high, profit potential is high, but firms
face more risk because poorer performing firms stay in and fight it out.
When entry and exit barriers are low, firms easily enter and leave the
industry, and the returns are stable and low.
1. Treats of substitute products: - A segment is unattractive when there are
actual or potential substitutes for the product. Competitors are changed
accordingly with the motor parts vary. So, it is a tough problem to
identify some major competitors for whole products and make policy and
strategy to consider their strategy.
2. Threat of buyers growing bargaining power: - A segment is unattractive
if the buyers possess strong or growing bargaining power. Buyers will try

79

to force price down, demand more quality or services, and set competitors
against each other, all the expanses of seller profitability.
3. Threat of suppliers growing bargaining power- A segment is
unattractive is the companys suppliers are able to raise price or reduce
quantity supplied the best defenses are to build win win relations with
suppliers or use multiple supply sources.

Pricing issues
The price of any product is the key factor that affects its sales and it is
also true in the spare parts industry. We have got the actual information
from the market regarding the importance of price and its affect on the
mind of the customer while purchasing the spare parts. In any business,
every thing runs on the profit margins. The same happens in the transport
line also. Every player wants to earn profit. The benefits of the company,
distributors and retailers depend on the sales of the spare parts. Here, the
main or ultimate buyers of the parts are owners of the vehicles. And they
want to purchase those parts which are better in quality but lower in cost.
Since TML has to pay the tax to government the price is comparatively
higher than the competitors which do not pay any tax. Price is the most
important attribute which affect the over all strategies and policies of any
organization .Since, customers are most sensitive to price and they always
want to purchase at least cost while an organization always wants to
improve its total profits.
Here, pricing issue is very crucial for
TML because of lower price of its main competitors in spare parts
business. TML has to face a tough competition in the market of spare
parts, because of the number of competitors varies with the different type
of spare parts. Actually, it faces a tough time at the time of considering
strategies of its competitors which has only a particular product line for
making strategies.
If price will be higher but company will not cover higher market share as
in the case of TML, it will not be in such a situation so that it can utilize
the concept of economies of scale.
We have got the actual information from the
market that the price of the TML parts is generally higher than its
immediate competitor for most of the product line and it is the main
reason why customers go for other companys spare parts. But on the
other hand some mechanics claims that there are some companies whose

80

parts are costlier than TMLs spare parts though their sales are fare
enough.

RECOMMENDATIONS AND
SUGGETIONS

81


The number of TATA MOTORS after sale service stations in
Jharkhand is not enough to fulfill the requirements of its customers. So it
is essential to build more service stations in order to provide proper
service to the customers.

The terms and conditions of financing must be flexible and

transparent so that it is convenient for the customers.

Easy finance should be provided to the customers. In order to do

this proper relation should be maintained with the financial institutions,
relations should also be build with new financial institutions.

Cabin comfort is also an issue which must be focused, as some of

the L.C.V products are running more than 500 km per day at a stretch, so
the staff needs sleeper beds to rest.

The maintenance cost of the models 407 and 709 are much higher
than its competitors (M&M, ALL, EICHER). The spare parts of TML are
comparatively costly. Thus steps should be taken to reduce the
maintenance cost along with the cost of spare parts with the help of
modernized techniques.

As the market has become more competitive, the need is to

promote such a vehicle which can be beneficial from all aspects. For
instance M&M 3200di is smaller in size as compared to TATAS 407 but
their payload capacity is all most same. So M&M 3200di is more suitable
for narrow roads which are very common in INDIA. This gives M&M an
edge over TATA MOTORS. R&D department should try to work on this
limitation and overcome it.

The mileage of TML L.C.V decreases drastically after two to three

years of its service. So in this case also the R&D department should try to
solve this problem.

Price of TML spare parts are quite high as compared to its

competitors, so research should be conducted to lower its prices.

The company should road campaigns & demonstrations more often

to impart technical knowledge to its targeted customers.

82

The company should increase the incentives of sales executives to

make them more loyal towards the company.

LIMITATION OF THE STUDY

A perusal of the study will definitely lead one to understand
that the present study has been taken-up under a number of
constraints. By n large, I faced these difficulties and
limitations.

83

The study was conducted in 45 days and that was not enough for such
a

vast topic.

1. Lack of resources like proper information and data.

2. Absence of the vehicle owners were also a reason not to get the
correct information.
3. Lack of proper information of the owner & the vehicle staff.
4. The company could not provide data for initial understanding of
the automobile market and also the database of customers.
5. The area of survey is restricted to the geographical area of four
cities of Jharkhand (Jamshedpur, Ranchi, Dhanbad and Hazaribag)
as the area was assigned by the concerned.
6. The size of sample is limited to 142 because of the time constraints
through it has been tried to make this sample as representative as
possible.
The above-mentioned limitations are not exhaustive but rather
indicative.

CONCLUSION:In the span of 6 years TATAMOTORS has proved its excellence in

delivering quality & service to its customers in Light Commercial Vehicle

84

(LCV) business unit. It is well known among the people for its core value
trust & loyalty . This leads to high expectation among the customer.
Findings says that TATA MOTORS has always scope to regain its
lost market share.

Technical specifications
85

 Leaflets and pamphlets of the four companies.

Books
Philip Kotler, Marketing Management.
Kothari, Research Methodology.

Internet sites
www.tatamotors.comwww.tata.com

www.wikipedia.com
www.mahindra.com
www.ashokleyland.com
www.eicher.com, www.google.com (images)

86