Re-focus on Tour and Travel Segment for TATA Winger

Report

By

Somya Harsh (Roll No. 11171)

Work Carried at TATA MOTORS LIMITED, NOIDA

Submitted in partial fulfillment of the requirement of Summer Internship Programme

Under the Supervision of Mr. Sukhdev Singh Territory Sales Manager (SCV-P), TATA MOTORS Ltd, NOIDA

SDM Institute for Management Development Mysore, Karnataka, India (June 2012)

Dated- 04-06-2012

Certificate By The Organizational Guide

This is to certify that Mr. SOMYA HARSH currently studying Post Graduate Diploma in Management at SDM Institute for Management Development, Mysore has successfully completed Summer Internship Project titled ___Re-focus on Tour and Travel Segment for TATA Winger__related to _____Marketing and Sales____ stream of Management from ______31-03-2012________to _31-05-2012_______.

Signature: Name:

Date: Place:

Designation: Name of the Organisation and Address:

Organizational Stamp

Certificate By The Faculty Guide

SDM INSTITUTE FOR MANAGEMENT DEVELOPEMNT, MYSORE

This is to certify that Roll No. 11171 Mr. ___SOMYA HARSH____________________ of PGDM Batch 2011-13 has satisfactorily completed Summer Internship Project titled _________ Re-focus on Tour and Travel Segment for TATA Winger_______ at M/S___________________TATA MOTORS LIMITED_________________________ located at ___NOIDA___ from ___31-03-2012____________ to ___31-05-2012__ to partially fulfill the requirements of the PGDM program under my guidance.

Signature: Name:

Date:

Designation:

SDM Institute for Management Development, Mysore

Institutional Stamp

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EXECUTIVE SUMMARY
Dissertation Title: Re-focus on Tour and Travel Segment for TATA Winger Mentor Name: Mr. Sukhdev Singh Student Name: Somya Harsh Roll No. 11171

This project report pans out the learning as well as market research and analysis done during this project. The project scope was to work with dealership to cover Tour and travel segment, and it entailed as much practical learning on sales and marketing processes as much field work was involved. Major learning were to understand Customer acquisition sales process of Tata Motors, Economies of Tour and Travel (taxi) operators, Pitching for Tata Winger on field in the market and invaluable insights on Sales and Marketing. A database of 371 probable consumers for Tata Winger in Noida and Ghaziabad is also prepared in excel sheet. With the objective to identify the reasons for depleted market share of TATA Winger in Tour and Travel (taxi) segment, a survey research was conducted which was exploratory in initial stages and descriptive in later part of the research. The existing customers of TATA Winger were interviewed and to know their feedback about TATA Winger. The service mechanics and sales executives were also contacted for knowing their observations on TATA Winger. Then a questionnaire was prepared and a sample of 55 probable consumers (Taxi drivers and fleet operators) were asked to fill it for primary data. I was provided with Winger sales guide, and also referred online and attended sales meet for secondary data. Eventually, the data is observed, interpreted, analyzed and discussed. Competitive analysis, SWOT analysis and PEST analysis is done to come up at a conclusion and provide some suggestions. The thesis describes the above work in detail.

Signature of Student

Signature of the mentor

Somya Harsh

Mr. Sukhdev Singh TSM (SCV-P), TATA Motors Ltd

Date: 02/05/2012

NOIDA

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ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to my mentor Mr. Sukhdev Singh for his exemplary guidance, monitoring and constant encouragement throughout the course of this Project work. The blessing, help and guidance given by him time to time shall carry me a long way in my journey of life on which I am about to embark.

Sincere appreciation is extended to Mr. Chaman and Mr. Shailendra from Automobile Sterling for their immense help during the course of this work. In those moments, when things used to turn dark, their presence had a soothing effect.

I am grateful to Prof. Ullas Rao, PGDM Faculty, SDMIMD, for providing me with the timely help and encouraging me for this Project.

My several well-wishers helped me directly or indirectly; I virtually fall short of words to express my gratefulness to them. Therefore I am leaving this acknowledgement incomplete in their reminiscence.

Somya Harsh

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List Of Symbols & Abbreviations Used

MUVs: MPVs: ICV LCV: SCV-C SCV-P M&HCVs: BS-III/BSIV: Multi utility vehicles; Multi-purpose vehicles; Intermediate commercial vehicle Light commercial vehicles; Small commercial vehicle-cargo Small commercial vehicle-passenger Medium and heavy commercial vehicles Bharat Stage-III/Bharat Stage-IV environmental norms for vehicles in India TSM CSM DSM RO Territory Sales Manager Customer Service Manager Distribution Sales Manager i) Regional Office ii) Release Order NVH ABS LSPV AC PS, HP, BHP Noise, Vibration and Harshness for Engine in vehicles Anti-lock braking system Load sensing proportioning valve Air Conditioner These various units of power all translate horse power in English. 100PS@5500rpm means the vehicle delivers 100bhp of max power when the engine runs at 5500rpm(revolutions per minute) Mathematically, 1 PS = 0.986 Bhp Nm AMC Unit of Torque Annual Maintenance Contract

List of Tables
Table 1: Market share of market Leader and others in four wheel automobile in India Table 2: Major automotive players in India (in utility vehicles and other commercial vehicles)

List of Figures
Figure 1: Tata Motors year by year major developments and innovations Figure 2: Tata Motors product line of business Figure 3: Customer Acquisition Sales Process at Tata Motors Figure 4: components of selling Figure 5: a salesmans time utilization - pie chart Figure 6: Old and New models of selling pyramid and inverted pyramid Figure 7: components of marketing - flowchart Figure 8: designation of the respondents in percentage pie chart Figure 9: number of vehicles owned by respondents or his company pie chart Figure11: number of Tata vehicles owned by respondent or his company pie chart Figure12: factors of importance while vehicle purchase bar graph Figure13: satisfaction with present vehicle pie chart Figure14: response for higher price implies better quality or not pie chart Figure15: awareness about Tata Winger doughnut graph Figure16: source of information about Tata Winger bar graph Figure17- Figure 28: rating of Tata Winger by respondents on various parameters cylinder graph Figure29: cumulative scores of ratings given to Tata Winger by respondents bar graph Figure30: respondents willing to buy/recommend Tata Winger pie chart 3D

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List of Pictures
Picture 1: Launch of first commercial vehicle by Tata Engineering in 1954 Picture 2: Tata Motors Medium and Heavy Commercial Vehicles Picture 3: Tata Motors Light Commercial Vehicles Picture 4: Tata Motors Intermediate Commercial Vehicles Picture 5: Tata Motors Small Commercial Vehicle cargo Picture 6: Tata Motors Bus Picture 7: Tata motors Small Commercial Vehicles passenger Picture 8: (left to right) Tata Winger maxi-van, Dual AC and high back front facing seats Picture 9: (clockwise from left) Tata Winger Platinum, inside cross-section , boot space with lockers, all captain bucket seats, drivers seat with 3-way adjustment and dashboard & steering.

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Table of Contents Certificate By The Organizational Guide .................................................................................................. i Certificate By The Faculty Guide ............................................................................................................. ii EXECUTIVE SUMMARY ....................................................................................................................... iii ACKNOWLEDGEMENT ...................................................................................................................... iv List Of Symbols & Abbreviations Used .......................................................................................... v List of Tables ........................................................................................................................................ vi List of Figures....................................................................................................................................... vi List of Pictures .................................................................................................................................... vii CHAPTER 1: INTRODUCTION ............................................................................................................ 1 1.1 1.2 1.3 1.4 1.5 1.6 Indian Automobile Industry ............................................................................................. 1 Structure Of Indian Commercial Vehicle Industry .................................................... 2 Major Automotive Players in India (UVs, commercial vehicles) ........................... 2 Government Initiatives ..................................................................................................... 3 Road Ahead ....................................................................................................................... 4 Possible Stumbling Blocks................................................................................................. 4

CHAPTER 2: COMPANY PROFILE .................................................................................................... 5 2.1 2.2 TATA Group .......................................................................................................................... 5 TATA MOTORS LTD. ............................................................................................................. 5 History Of Tata Motors ............................................................................................... 6 Tata Motors Ltd. Global Presence......................................................................... 7 Present And Future Challenges ............................................................................. 8 Major Developments & Investment ...................................................................... 9

2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.4 2.4.1 2.4.2 2.5 2.6 2.7 2.8 2.9 2.10

Product Line of Business ................................................................................................. 10 Product Range- commercial vehicles ....................................................................... 10 Goods Carrier ............................................................................................................... 10 Passenger Transportation .......................................................................................... 12 Location.............................................................................................................................. 13 Management.................................................................................................................... 13 About Automobile Sterling ............................................................................................ 14 Customer Acquisition Sales Process at Tata Motors............................................... 15 Financing A Vehicle ........................................................................................................ 16 Featured Product Description: TATA Winger (SCV-P) ............................................ 17

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2.10.1 2.10.2 2.10.3 2.11

Features ...................................................................................................................... 17 Technicalities ............................................................................................................. 18 Variants and Price ................................................................................................... 18

Scenario of Tour and Travels (Taxi) operations ........................................................ 20

CHAPTER 3: BACKGROUND OF THE PROBLEM ......................................................................... 22 3.1 3.2 Problem .............................................................................................................................. 22 Background of the Problem ......................................................................................... 22

CHAPTER 4: SALES AND MARKETING LEARNING FROM THE PROJECT ............................ 23 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 What is selling all about? ............................................................................................... 23 What is Pitching? .............................................................................................................. 23 Components of Selling ................................................................................................... 26 Sales persons Time Utilization ....................................................................................... 26 The New Sales Model...................................................................................................... 26 Value and Quality ........................................................................................................... 27 Value Proposition ............................................................................................................. 27 Marketing ........................................................................................................................... 27 Consumer Perception .................................................................................................... 28 The Role of Marketing Research.................................................................................. 28

CHAPTER 5: RESEARCH FRAMEWORK ......................................................................................... 29 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 Research Purpose ............................................................................................................ 29 Research Objective ........................................................................................................ 29 Research Design .............................................................................................................. 29 Data Collection Methodology .................................................................................... 30 Research Approaches ................................................................................................... 30 Research Instrument ....................................................................................................... 30 Contact Methods ............................................................................................................ 31 Pre-Testing .......................................................................................................................... 31 Sampling Plan ................................................................................................................... 31 Sampling Limitations........................................................................................................ 31 Scaling Technique ........................................................................................................... 32 Analysis tool ....................................................................................................................... 32

CHAPTER 6: DATA INTERPRETATION ............................................................................................. 33 6.1 Exploratory Data .............................................................................................................. 33

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6.1.1 6.1.2 6.1.3 6.2

Interaction with Mechanics (summary)............................................................. 33 Interaction with Sales Executives (summary) ................................................... 33 Competitor Analysis (as per consumers): ......................................................... 34

Descriptive Data .............................................................................................................. 35 Designation of the respondents of the questionnaire................................... 35 Number of Vehicles ................................................................................................. 36 Number of Tata vehicles respondents own ..................................................... 36 How do you rate the factors while buying the vehicle? .............................. 37 Satisfaction with present vehicle/fleet of vehicles ......................................... 38 Higher price implies better quality ?................................................................... 39 Do you know about Tata Winger ?..................................................................... 39 Popular source of information on Tata Winger ............................................... 40 Rate TATA Winger on various parameters ........................................................ 41 Cumulative scores of Likert Scale ....................................................................... 48

6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.2.7 6.2.8 6.2.9 6.2.10

6.2.11 Respondents willing to buy or recommend Tata Winger after my pitching 49 CHAPTER 7: REPORTS AND DISCUSSION ..................................................................................... 50 7.1 7.2 7.3 Comments ......................................................................................................................... 50 SWOT Analysis ................................................................................................................... 51 PEST Analysis ...................................................................................................................... 52

CHAPTER 8: CONCLUSION ............................................................................................................. 53 SUGGESTIONS ................................................................................................................................ 53 Limitations of this Project ................................................................................................................. 54 Final Note .......................................................................................................................................... 55 Appendix - I ....................................................................................................................................... 56 Appendix II...................................................................................................................................... 58 Appendix-III (a) ................................................................................................................................. 59 Appendix-III (b) ................................................................................................................................. 60 Appendix-IV....................................................................................................................................... 61 Appendix-V ....................................................................................................................................... 65 References ............................................................................................................................................ 66

CHAPTER 1: INTRODUCTION
1.1 Indian Automobile Industry
We are all well aware of the fact that, for decades the Indian automobile industry was way behind some of the most influential economies in the world like USA and Japan. The Indian Automobile Industry embarked on a new journey since 1991 with de-licensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Almost all the global majors have set up their facilities in India taking the next level of production of vehicles from 2 million in 1991 to 110+ million in 2011. The automobile sector of any country reflects the health of its economy. By this virtue, the Indian economy is very much in a good shape as the country's automobile industry has marked impressive growth in the last fiscal. The cumulative production for April-March 2012 registered a growth of 13.83 per cent over AprilMarch 2011, manufacturing 20,366,432 vehicles during the period. While Passenger vehicle segment grew at 4.66 per cent during April-March 2012, overall commercial vehicle segment registered an expansion of 18.20 per cent yearon-year (y-o-y). The overall Indian automobile industry grew by 12.12 per cent in 2011-12 by selling 17.3 million units, majorly driven by demand for two-wheelers and light trucks. Further, the sector witnessed sales growth of 12.46 per cent for the period between April 2011 and February 2012. The industry has undergone numerous developments and investments recently that have substantially impacted the market dynamics. Today, the Indian automobile industry is one of the most vibrant, modern and upbeat automobile markets in the world. It is the Largest three wheeler market in the world 2nd largest two wheeler market in the world 7th largest passenger car market in Asia & 10th Largest in the world 4th largest tractor market in the world 5th largest commercial vehicle market in the world 5th largest bus & truck market in the world

1.2 Structure Of Indian Commercial Vehicle Industry

The Indian commercial vehicle market is segmented on the basis of gross vehicle weight(GVW). Vehicle less than 7.5 ton are classified as LCVs, 7.5 ton to 12 ton are ICVs and the heavier ones are termed as M/HCVs. In terms of usage commercial vehicle may be termed as goods carrier and passenger carrier. Among the passenger carriers in the less 7.5 ton GVW segment, those with seating capacity up to 13 are categorized as utility vehicle(UVs and not part of LCVs) while those with sitting capacity over 13 passengers are grouped as LCVs. The overall commercial vehicles industry is split between the LCVs and M/HCVs segment roughly in the ratio of 45:55. In recent years utility vehicles (UVs) segment registered the fastest growth rate. Utility Vehicles sales grew by 47.32 percent and Vans grew by 6.74 percent in April 2012 as compared to same month last year. The overall Commercial Vehicles segment sales registered growth of 4.37 percent in April 2012 as compared to the same month last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered negative sales growth at (-11.60) percent, Light Commercial Vehicles grew at 15.83 percent.

Table 1

1.3 Major Automotive Players in India (UVs, commercial vehicles)

Companies Ashok Leyland Asian Motor Works BMW India Eicher Motors Fiat India Force Motors Segments LCVs, M&HCVs, buses M & HCVs Cars and MUVs LCVs, M & HCVs Cars, MUVs MUVs and LCVs

Ford India General Motors India Hindustan Motors Honda Hyundai Motors Mahindra & Mahindra Maruti Suzuki Piaggio Swaraj Mazda Ltd Tata Motors Cars Toyota Kirloskar Volvo India Table 2

Cars and MUVs Cars & MUVs Cars, MUVs and LCVs Two wheelers, cars and MUVs Cars and MUVs Three wheelers, cars, MUVs, LCVs Cars, MUVs, MPVs Three wheelers, LCVs LCVs, M & HCVSs, buses MUVs, LCVs, M&HCVs, buses Cars, MUVs M & HCVs, buses

1.4 Government Initiatives

In order to enforce compliance and the Energy Conservation Act, the Government has recently given its nod to fuel mileage standards and labeling for new cars mandating auto makers to put Government certified fuel efficiency labels on each car they sell and improve efficiency of their products. While the labels will become compulsory soon, the standards will be introduced by 2015, giving manufacturers time to improve upon their technology. The Indian Government is in the process of constituting a National Automotive Board (NAB) which would become a formal set-up to look into the issue of recall of vehicles and hence improve manufacturing standards. The prospective body, to oversee technical and safety aspects of vehicles, will have representatives from all the nodal ministries and automotive bodies such as the Automotive Research Association of India (ARAI).

 Automotive Mission Plan 2016: To accelerate and sustain growth in the automotive sector and to steer, coordinate and synergize the efforts of all stakeholders, Automotive Mission Plan (AMP) 2006-2016 has been prepared in order to make India a global automotive hub. The Automotive Mission Plan (AMP) 2006-2016, aims at doubling the contribution of automotive sector in GDP by taking the turnover to USD 145 billion and providing additional employment to 25 million people by 2016 with special emphasis on export of small cars, MUVs, two and three wheelers and auto components.

1.5 Road Ahead

Industry body SIAM expects overall automobile sales to grow by 10-12 per cent in 2012-13 on the back of supportive Government policies, launch of new models and intensifying enthusiasm for cars among Indian consumers. Furthermore, Rothschild, a UK-based global financial advisory firm, forecasts that India would become the third largest auto industry by volumes by 2015. The growth is anticipated to be driven by increase in investments by auto makers New launches strengthening dealership networks strategic alliances predicted mergers and acquisitions (M&As)

This would expand the capacity from 4.8 million units in 2010 to 12 million in 2018., and are expected to provide an impetus to the sector in the years to come.

1.6 Possible Stumbling Blocks

Though Indian Auto Industry ended 2011-12 on positive note, year 2012-13 began with low growth. There is already great pressure in the market and demand is low due to high inflation, high interest rates regular hike in fuel prices slowdown in economy

CHAPTER 2: COMPANY PROFILE

2.1 TATA Group
Founded by Shri Jamsetji Tata in 1868, The TATA Group is one of Indias largest and most respected business conglomerates. It comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. The group has operations in more than 80 countries across six continents, and its companies export products and services to 85 countries. The total revenue of Tata companies, taken together, was $83.3 billion (around Rs. 3,796.75 billion) in 2010-11, with 58 per cent of this coming from business outside India. Tata companies employ over 425,000 people worldwide. The Tata name has been respected in India for more than 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 31 publicly listed Tata enterprises and they have a combined market capitalization of about $79.99 billion (as on May 24, 2012), and a shareholder base of 3.6 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

2.2 TATA MOTORS LTD.

Tata motors is committed towards maximizing customer satisfaction and strive to achieve the goal of excellence by continual improvement by ongoing design and development of sale of reliable, safe, cost effective, quality product and service of international standard by using environment sustainable technologies for improving levels of efficiency and productivity within its plants and ancillaries Promoters of Tata Motors Ltd. Tata Sons Mr. Ratan Tata, chairman Tata Industries

Indias Most Reputed Company Tata Motors was recently ranked as Indias Most Reputed Company in the Nielsen Corporate Image Monitor (CIM) Study 2011-12. On key measures such as Familiarity, Favorability and Most Admired Company, it was ranked No.1 and was second in Favorable Media Visibility and CSR only to HUL and ITC, respectively. Thereby Tata Motors secured 1st Rank on Corporate Reputation Index this year. Tata Motors was No. 2 last year, behind Tata Steel.

Figure1

2.2.1 History Of Tata Motors

TATA MOTORS Ltd is a part of the TATA GROUP of Companies. It was found and named as TELCO (Tata Engineering And Locomotive Company Limited) and established as a locomotive manufacturing unit in the year 1935 and later on started manufacturing commercial vehicle from the year 1954, forming a joint venture with DAIMLER BENZ AG, Germany known as TATA ENGINEERING.

Picture 1

Later on at beginning of 2003 financial year it was rechristened a more specific name TATA MOTORS Ltd. The Company's over 25,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics."

After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'TataMobile' (1989),LCV), Tata Sumo (1994, LCV) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the TATA INDICA in 1998, Indias first fully indigenous passenger car. Though the car was initially panned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors. The launch of TATA ACE, India's first indigenously developed sub-one ton mini-truck, in the year 2005, proved Tata Motors to be a leader in small commercial vehicle industry too. In January 2008, Tata Motors launched TATA NANO, the least expensive passenger car in the world at about 120,000. In May 2009, Tata Motors unveiled its new range of world standard trucks, continuing with its tradition of being a pioneer in Indian Automobile Industry. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focusing on environment-friendly technologies in emissions and alternative fuels.

2.2.2 Tata Motors Ltd. Global Presence

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Tata Motors has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the company. Hispanos presence is being expanded in other markets. On Tata's journey to make an

international foot print, it continued its expansion through the introduction of new products into the market range of buses (Star bus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also holds franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents.

2.2.3 Present And Future Challenges

Tata Motors and other Indian companies have had some distinct advantages in comparison to other multi-national competitors especially a cost advantage as labor costs in India were low and government policies favorable. But with wide array of government policy supports in form of sops, taxes and FDI encouragement in terms of subsidy, is motivating many foreign commercial vehicle manufactures to set up shops in India, who are making India as a production hub and export to nearest market. Thus Tata Motors will have to face tough competition in near future from multinationals and Indian companies moving into joint ventures with foreign firms. The presence of Suzuki through its subsidiary, Maruti Suzuki in the Indian market may also be alarming. Maruti has aggressively launched family cars to undermine the Tata models. Tata has continued to be strong in the MUV and SUV sector due to lack of competition and correct pricing. However, Tata now faces stiff competition from fellow compatriot Mahindra Group as well as multinational brand like Toyota and Chevrolet. Additionally, the growing presence of fellow Indian competitors, Mahindra and Force Motors not only in the Indian but also in the Global market may affect Tata's sales. Mahindra and Force have formed joint ventures with Renault and MAN respectively. Mahindra has also formed a 51:49 JV called Mahindra Navistar with ITEC, USA (parent Navistar International), to manufacture commercial vehicles. And to bolster its position in the CV business Ashok Leyland, which is the second largest commercial manufacturer in India has remained Tata's biggest competitor in the Indian heavy commercial vehicle market and with its acquisition of Czech Republicbased Avia it may manage to increase its presence in neighboring markets such as Sri Lanka, Nepal where Tata Motors has a monopoly.

To counter the growth of these various companies Tata has come up with revised or new models like Indica Vista, Indigo Vista, Xenon, Tata World Truck and an aggressive marketing policy. The purchasing power of consumers is also rapidly growing. Therefore, the company has to migrate to higher levels of quality, which is imperative, if they want to sustain their position in the Commercial Vehicle business and Automobile Industry as a whole. According to Mr. R. Bhaskar, Plant Head (CVBU-Pune), the Tata Motors Limited is primarily a people driven company, but they will have to slowly migrate to a process driven company because of exponentially growing scale of business. Mr. Bhaskar also adds that they will have to double their efforts in containing costs and refine their interactions with their channel partners like vendors, dealers and customers.

2.2.4 Major Developments & Investment

Tata Motors standalone revenues (net of excise) for FY 2011-12, at Rs. 54,307 crores posted a growth of 15.3% over Rs. 47,088 crores in the corresponding period last year. Tata Motors commercial vehicles sales during FY 2011-12 increased by 15.7 % to 530,204 units, as compared to the corresponding period last year. The Company's market share in commercial vehicles was 59.4% for FY 2011-12. Cumulative sales of the Utility Vehicles are 7,180 nos. in May 2012 higher by 3%, in May last year. Mr. Cyrus P. Mistry, Deputy Chairman of Tata Sons, has been inducted to the Board of Tata Motors as a Director. Tata Motors, the country's largest automobile producer, has announced that it will infuse Rs 800 crore - Rs 1000 crore (US$ 155.2 - 194 million) over 2012-2015 to build a plant in Dharwar, Karnataka. The facility that would be exclusively dedicated to manufacture the Tata Ace Zip and Magic Iris, will have an annual capacity of 90,000 units. It is anticipated that the plant would reach its full capacity by the end of fiscal 2012-13.

2.3 Product Line of Business

Tata Motors product LOB (line of business) is demonstrated below:

TTATA MOTORS LTD. MOTORS LTD

Commercial Vehicles

Passenger Vehicles

Defense and homeland security vehicles

M&HCV

LCV

ICV

SCV

Truck Bus
Figure 2

Truck Bus

Truck

cargo

passenger

2.4 Product Range- commercial vehicles

A quick look at the commercial vehicles of Tata Motors Ltd in India:

2.4.1 Goods Carrier

M&HCV

Picture 2

Prima Other M&HCVs Rigid Trucks:

Construck

SE 1613 697 TCIC 4x2 SE 1613 TC 4x2 BS2 LPT 1613 697 TCIC 4x2 LPT 1613 TC 4x2 BS2

10

 LPO 1512 TC 4x2 BS2 Truck Chassis LPT 2515 697 TCIC 6x2 BS2 LPT 2515 TC 6x2 BS2 LPT 2518 6x2 Tractor Trailers: LPS 3015 TC 4x2 BS2 LPS 3516 TC 4x2 BS2 LPS 4018 TC 4x2 BS2 Tippers: SK 1613 697 TCIC 4x2 BS2 SK 1613 TC 4x2 BS2 LPK 1613 697 TCIC 4x2 BS2 LPK 2516 TC 6x4 BS2 LPK 2530 TC 6x4 BS2 Applications: 2516 TRANSIT MIXER 2515 BULKER LPT 2515/ LPT 2518 LOAD BODY 3516 BULKER 4018 BULKER SEMI TRAILERS

LCV

pic 3

TL4x4

SFC 410 EX

LPT 712 EX

207 DI EX-single cab

207 DI- single cab 207 DI- crew cab SFC 407 EX Turbo SFC 407 Turbo Truck

LPT 709 E Turbo Container Truck

LPT 407 Turbo truck

SFC 709 E Aerial lift Turbo Truck

11

ICV

LPT 1109 Turbo Truck LP 1109 Turbo Truck

Picture 4

SCV-C Tata ACE (chhota hathi)

Picture 5

ACE HT ACE EX ACE CNG SUPER ACE ACE ZIP

2.4.2 Passenger Transportation

LCV and M&HCV

Buses

49 non-ac buses(CityRide; StarBus; StarBusSkool;CNG low-RE) 14AC buses (Divo;StarBus;StarBusSkool;CNG low-RE,Tarmac) 32 bus chassis

Picture 6

12

SCV-P

Tata Venture

Tata Magic Iris

Tata Magic

Picture 7

Tata Winger

Tata Winger Platinum

2.5 Location
As mentioned above Tata Motors is manufactured as two different units: 1. CVBU : (commercial vehicle business unit) The CVBU has plants located in : Jamshedpur Pune Pantnagar Dharwaad Lucknow Gujarat (Sanand) 2. PVBU: (passenger vehicle business unit) The PVBU has its plant located in Pune as well as Sanand.

2.6 Management
As my area of concern was commercial vehicle business unit let us look at the hierarchy of the CVBU. Chairman Mr. Ratan Tata V Chairman - Mr. Ravi Kant MD India - Mr. P. M. Telang President CVBU - Mr. Ravi Pisharody VP (Commercial - PCBU) - Mr. R. Ramakrishnan Tata Motors Board has 12 Directors.

13

The regional offices of Tata Motors ltd are located in four regions: R O EAST Kolkata RO WEST Mumbai RO NORTH New Delhi RO SOUTH Chennai

My project location, Noida area office, is located at- No. 123, Block-I, 2nd Floor, Office No. 3, Plot No. A-41, Correnthum, Sector 62, NOIDA (U.P.) Noida Area office has two Area Managers for U.P.-4 and U.P.-5 territories. Under Area manager U.P.-5 there are TSM-Buses and TSM-rural. My concerning authority was Area manager U.P-4. He is aided by an Area Service Manager, Area Parts Manager TSM- SCV-P, TSM- LCV&ICV, TSM- M&HCV, TSM- SCV-C and 5 Customer Service Managers. Present Area Manager (U.P.-4) is Mr. Shirsindhu Mandal and my organization mentor Mr. Sukhdev Singh, TSM-SCV-P is his subordinate. Noida Area Office comes under RO NORTH located at- Regional Office North, Tata Motors Ltd., Jeevan Tara, 5, Sansad Marg, New Delhi. Present Regional Manager North is Mr. Rajesh Kaul. At present Tata Motors has around 600 dealers operating in entire India with 12000 service stations TASS (Tata authorized service stations) and 10000 company trained mechanics.

2.7

About Automobile Sterling

Automobile Sterling is one of leading Tata Commercial vehicles dealer in NOIDA, Hapur, Muradabad, Ghaziabad that offer most promising service among Tata Commercial dealers. Automobile Sterling provides a broad portfolio of Tata Commercial vehicles. Their core portfolio deals in sales, service, spares, hire purchase, insurance, registration, refinance, AMC and recon engines. According to Mr. Sharda, General Manager - Automobile Sterling, they differentiate themselves in the marketplace by providing outstanding service and innovation. It is instrumental to their success in cultivating and maintaining long-term business relationships with our clients. Automobile Sterling has earned enviable reputation purely due to our customer-oriented approach and top quality services in Sales & Service. The dealership has a General Manager who monitors various Sales teams. Sales Team for each vehicle segment/model is headed by a Distribution Sales Manager

14

(DSM) aided by Team Leaders in case of high selling vehicles and Sales Executives in general. The Automobile Sterling has over 150 staff strength, including Sales, HR, Finance, Service, Back-Office and non-technical staff. For promotional activities Automobile Sterling conducts canopies, vehicle demonstrations, offers test driving, carries out hoardings and newspaper advertisements, gives discounts, holds free service camps, in addition to sales executives and sales consultants working diligently on field and showroom to inform the probable customers about TATA Motors commercial vehicles.

2.8 Customer Acquisition Sales Process at Tata Motors

Tata motors follow a strategically based customer acquisition sales process. During this acquisition process customer is looked forward in following stages:

Stage I Enquiry/Contact

Stage II Quotation

Stage III Advance Payment

Stage IV Vehicle Delivery

There are 4 steps in which Tata Motors CVBU categorize their customers in the short term:

C0

C1
(Universe)

C2

C3

Prospective Customers

Figure 3

15

C0 - These are interested Customers. C1 - These are those customers who have received Quotation/ Performa Invoice. C2 - The customers who have made down payment fall into this category. C3 - Customers to whom Delivery of vehicle is made against DD/ Cheque/ RO.

The Customer Acquisition process establishes how CVBU tracks Customers (including customers such as new, potential, repeat, competition, lost customers). This helps CVBU to track performance against the sales target set on virtually on daily basis, and helps Tata Motors to achieve those targets. Thus CVBU uses information gathered in L&L approaches both for Short term and Long term in order to retain customer focused in their actions and to continuously satisfy the changing needs of the customers.

2.9 Financing A Vehicle

In the preliminary stages of the project I was to learn how to finance a vehicle, which seemed to be a necessity at the latter part of the project. At Tata Motors CVBU Marketing and Sales Division every individual even the Summer Trainees are taught how to finance a vehicle before entering the field. This is important because the customers often ask several questions on how to finance the vehicle and which scheme is the most suitable/profitable to them at that point of time and if anyone fails to satisfy its customers quest one is likely to suffer the loss of a customer which is always fatal to any industry and company. Mr. Shailendra (Sales Executive) taught me how to finance a vehicle and what are the documents required during the procedure. Tata Motors provides finance to its customers through Tata Motors Finance and IndusInd bank. At the end of the project I can comment only on one factor and that is while financing one should always see two things in customer: 1) The intention 2) The capability To make it easy for potential customers to own Tata Motors vehicles, Tata Motors Finance Ltd. ventured into vehicle financing way back in 1957. Today, Tata Motor Finance (TMF), the in-house financing arm of Tata Motors, provides a single window

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service to customers by being accessible to them through the dealers. TMF has partnered the growth of many single truck operators, who have evolved to the status of fleet owners. Besides catering to individuals, TMF offers specially designed finance products for fleet operators and institutions. Currently, TMF has crossed 2,00,000 live contracts, and is among the top vehicle financiers in the country. Tata Motors Finance strives to ensure speedy processing of contracts which are either cleared directly by the dealers or are approved by their field staff. The contracts are usually finalized within 1 to 3 working days abiding by its Fair Practices Code 2008. To calculate whether the customer is eligible for giving loan there is a RSPM (Risk Scoring and Pricing Module) in which there is a list of questions which are asked by the sales executive to the customers which later on are fed into the software which responds whether the prospective customer is eligible for loan or not and what rate of interest shall the loan be given.

2.10

Featured Product Description: TATA Winger (SCV-P)

As a completely Indian company, you can trust Tata Motors to know the market like the back of its hand. It had sensed the demand for commercial passenger vehicles in the rural and urban markets and aptly launched TATA Winger to comfortably suit the desired needs of the market. Tata Winger, Indias first maxi-van was launched in year 2007. It has also developed variants as maxi-cab (6+1) and mini-bus (13+1). And in addition Winger School Van, Winger Cargo and Winger Ambulance add to its many utilities. The need of a multi utility vehicle like Tata Winger in Indian market cannot be denied. It is evident that Tata Motors has thoroughly thought over the concept and design of Winger. Application specific variants enhance the utility of Winger in everyday life and business. 2.10.1 Features It can seat 6 to 13 passengers, comes with generous saloon space, spacious headroom and legroom, and wide luggage space. Passenger comfort has been further enhanced with all front-facing seats and, depending on the variant, will come with dual AC, comfortable seats, two mobile charging points, magazine pockets, bottle holders, spot lamps, grab handles and, besides provision for a music system.

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A cool vehicle to act as staff carrier, an ambulance, hotel or airport transfers, school vans or even tourist vans at various tourist destinations. 2.10.2 Technicalities The new Winger is powered by 2L turbo charged diesel engine. Quite economical, and the diesel engine is mostly favored in India as for long runs and optimum fuel usage. Moreover, diesel engine powers most of the commercial vehicles in India so Tata Winger diesel model comes only as the most natural option from the company. It meets all the BS-III norms accompanied with a warranty of 18-months or 1.5 lakh KMs, whichever is earlier. Tata Winger is built on a monocoque construction method where the engine bay and passenger compartment is built as a single unit mounted on a basic ladderframe chassis. This ensures low car-like noise, vibration and harshness. Front independent suspension and anti-roll bars with hydraulic shock absorbers ensure a bump-free ride. The front suspension is built on McPherson Strut technique for smoother rides while the rear suspension has parabolic leaf springs to support heavy loads. This combination makes Winger capable of gliding like a car bearing weight of a minibus. Front brakes are ventilated disc brakes. The rear brakes, however, are Drum brakes with LSPV (Load Sensing Proportion Valve). LSPV gauges the load on all 4 wheels, for efficient braking under variable load conditions, so as to avoid swirl and sway of the vehicle. All variants of Tata Winger are low floor vehicles with a low centre of gravity to make boarding easier for passengers. This large mini-van can easily turn through the most difficult city traffics where Tata Safari gets easily stuck and Mahindra vehicle drivers feel clumsy in maneuvering their vehicles. The power steering and the design clubbed with a good pick up is all you need to be impressed with the new Tata Winger. 2.10.3 Variants and Price Winger (13 +1) non-AC is priced at Rs. 6.94 lakh, ex-showroom NCR. The deluxe, platinum and luxury variant of Tata Winger is priced at Rs. 7.58 lakh, Rs. 8.08 lakh and Rs. 8.19 lakh, respectively. With all the luxury features fully-loaded, higher range models remain as an option for hotel and airport transfers, or perhaps a staff carrier at the call center or factory where the owner wants to lend a little more touch of luxury, comfort and personalized services for its travelers. Winger Standard is a Non-AC with 9+D, 12+D and 13+D seating and is ideal for rides between cities, small town and villages. Winger Luxury is a 9+D dual AC maxi van. It comes with all reclining seats, arm rests, head rests and a large luggage space. Winger Deluxe is a 12/13+D vehicle with dual AC Flat Roof or a Non-AC High Roof options. It comes with a Hi-Back dual tone PVC-lined fabric seats. Luxury and deluxe variants are powered by 91-Hp 2-Lt TCIC engine that delivers a peak torque of 190 Nm. Newly launched Winger platinum is a 6-8 seater van built to incorporate specific

18

passenger and user feedback. The interiors are exquisite and more spacious, with all bucket seats making it only maxi-cab which is a comfortable for all alternative to any MUV in this price segment. Winger Platinum also features a 2-DIN audio system with 4 speakers with an option of LCD screen. Tata Motors has gone a step forward to ensure customized solution for various industry needs which is clearly visible with its three other variants the school van, cargo and ambulance. The School van option comes with AC and all the safety features intact for a comfortable ride for the little ones. The complete innovative design gives comforts of a car and features of a bus like abundant space and comfort. The engine and the driving compartment have been thoughtfully compressed to give more space to the end customers (passengers) and its competitive pricing makes it a natural choice any day for middle customers (Fleet operators). Winger comes in 8 variants all suited for different types of needs. Now is there any vehicle that gives so many options and variants. Naturally none as till now Maruti Omni served as the only option for commercial needs. TATA Winger is yet another trend setting commercial vehicle that offers you the comfort of a car and spaciousness of a bus. Winger is designed to accommodate a host of additional fitments, so that you can customize it to your preference. Indeed, with so many different uses, it is the first choice of a Multi Utility Vehicle. Refer Appendix-I for WingerMaxivans Factsheet.

Picture 8

Winger

Picture 9

Winger Platinum

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2.11

Scenario of Tour and Travels (Taxi) operations

Situated around Indian National Capital, New Delhi, NOIDA is a part of the National Capital Region (NCR) and Ghaziabad is very much nearby. The region is developing steadily as a suburb of Delhi and some areas have developed so much as to be seen as just an extension of New Delhi. The business ecosystem is thriving in this area and among these the opportunity for Tours and Travels (Taxi) is immense for following reasons: There millions of national and international tourists flocking in and out of DelhiNCR for touring in and around Delhi, Agra, Mathura, Himachal, J&K, Rajasthan and UttraKhand. With rising population, there is increased demand for airport and railway station drop and pickup services. The national and multi-national companies, esp. IT and ITes, are coming in huge numbers to establish their offices, and there is requirement for their multitude of employees to commute between homes and workplace. Apparently, most of these companies prefer for outsourcing the fleet operations to fleet operators or vendors for reduction in their overheads costs. This calls for a huge business potential for Tours and Travels (Taxi) to provide various kinds of services and packages to meet this demand in Delhi-NCR. There are two approaches of travel agencies. One is the traditional, multidestination, out-bound travel agency, based in the originating location of the traveler and the other is the destination focused, in-bound travel agency, that is based in the destination and delivers an expertise on that location. At present, the former is usually a larger operator like Thomas Cook, while the latter is often a smaller, independent operator.

The Fleet operators The fleet operators in Delhi-NCR are high volume handling operators having even maximum of 3000 vehicles per vendor. This includes the bus, UVs, and cars. The fleet operators can be categorized in following ways: Vendors are functioning for single company in a single area (Location) Vendors are functioning for a single company in all the places where the company is located Vendors are functioning for more than one or two companies simultaneously

20

The vendors can also be classified in the following way: Vendors who own all their Fleet vehicles Vendors who have all their Fleet vehicles attached from individuals Vendors who further outsource a part of the fleet vehicles to small travel agencies Hence the potential buyers of the Fleet operations vehicles are: Mainly the Fleet operating Vendors Experienced drivers working for the Fleet operators Drivers working for other individuals who have attached the service to the vendors Entrepreneurs who search for new potential business

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CHAPTER 3: BACKGROUND OF THE PROBLEM

3.1 Problem
TATA Winger, Indias first maxi-van, since its launch in 2007 has been facing stiff competition from Force Motors Tempo Traveler. TATA Motors have also launched premium model TATA Winger Platinum in maxi-cab segment, targeting airport pickup, hotels and personal usage by customers. And in this segment TATA Winger is tipped against, MUVs like Toyota Innova, Chevrolet Tavera and Mahindra Xylo. TATA Winger is a comfortable for all, spacious and compact vehicle in an affordable price, with brand assurance of TATA. Although the vehicle has buyers in school van or Ambulance, the Tour and Travel (Taxi) segment has very few takers for TATA Winger especially in North India.

3.2 Background of the Problem

1) Dominance of Force Motors In year 2008 new models were launched in the Traveller range by Force Motors, which was well accepted all over India. Traveller Shaktimaan, Traveller Luxury and Traveller Smooth, with a smart new look. The Tempo Traveller has been more dominant in van segment ever-since. Market share of Tata Winger in NOIDA and Ghaziabad, at present, is just 30%. 2) Government Norms While Government Norm of only BS-IV compliant vehicle to be registered in companys name in Delhi-NCR, is proving deterrent for sales of all variants TATA Winger available only in BS-III. A ban from Maxi-Van lifted since October 2011 in areas of UP and Haryana is providing ample opportunity for TATA Winger. All India Permit can be issued for TATA Winger in Tour and Travel segment. Still demand from Tour and Travels segment for TATA Winger is dwindling and sales in that segment are low. 3) Brewing rivalry in utility vehicles A little over one in five of the 2.5 million passenger vehicles sold in India are utility vehicles, according to a report by Deloitte. With growing income levels SUVs and MPVs sales will form a larger chunk of total market. Hence the race has begun as the rivals are seeking to challenge current market leaders in the utility vehicle segment such as Mahindra and Mahindra Ltd and Tata Motors Ltd. Maruti Suzuki India recently launched the multi-purpose vehicle Ertiga. Nissan is coming up with Evalia and Chevrolet will soon dish out Enjoy, this Diwali. This brews more than a cut throat competition for TATA Winger Platinum and TATA Winger, which is already tipped against likes of Toyota Innova (G and Gx), Chevrolet Tavera and Mahindra Xylo, in price segment of Rs. 7 lakh to Rs. 10 lakh utility vehicles.

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CHAPTER 4: SALES AND MARKETING LEARNING FROM THE PROJECT

An organization exists because somebody wants an output of what organization does, irrespective of who the organization is. Though today technology is that drives the market, the machines like computer and cell phones are merely a mean to an end, to make things easy. Selling is still about managing people. In era of globalization there are no boundaries. And basic products of organizations in an industry are identical. Commodities are technologized and technologies are commoditized. There is a need for changes in attitudes as expectations are promiscuous. Product quality is necessary but not sufficient condition for success today. If we dont have product quality then failure is guaranteed. But if we have product quality, success is not necessary. We got to get it to the market and sale it or make people buy it.

4.1 What is selling all about?

Traditionally, Selling is to see whats in it for person on the other side and giving customers what they want. But this is difficult as customers generally feel they have all because mostly they do not know what they want. So as a sales person we should make customers know what they do not know and sell them what we have. Thus, Selling is about getting customers know what we have. We can never sell to a satisfied person. Thus, as a sales person we must either be identifying area of dissatisfaction or creating area of dissatisfaction. Then, a sales person doesnt sell, the customer buys. This is the ideal case which should be. Selling is about managing dissatisfaction. People buy a product when they believe. An intimate understanding of the buyer is necessary. As a sales person we must establish a mental connect with the buyer. Knowing the buying behavior, likes and dislikes of the buyer is the key to the success. Customers are plenty, so the issue is how do we find a way to reach them i.e. reach to market (RTM)? Each route to the customer has its own characteristics. We must build personal contacts and meet in person with the potential customers. Customer needs to be helped to choose us, the sales persons.

4.2 What is Pitching?

In selling technique, a sales pitch is a line of talk that attempts to persuade someone or something, with a planned sales presentation strategy of a product or service designed to initiate and close a sale of the product or service. A sales pitch is essentially designed to be either an introduction of a product or service to an audience who knows nothing about it or a descriptive expansion of a product or service that an audience has already expressed interest in.

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During my field visits, the sales pitch mostly consisted of following:1) FABing It is about telling Features, Advantages and Benefits of the product to the customers. Example: TATA Winger Platinum FAB (Features Advantages Benefits) Dimensions (mm): 4520 x 1940 x 2050 BENEFITS to PASSENGERS: Large passenger area and generous amount of interior space for all passengers, including the third row. Allows 6 adult passengers to travel comfortably without compromising. Comfortable ride for a stress free journey- adequate thigh support, adjustable headrests and soft wide armrests. All reclining individual captain seats. The front McPherson struts with coil spring and rear parabolic leaf spring. Individual AC vents; 2-DIN audio system with USB port, 4 inbuilt speakers and LCD provision. Ample storage space. Meets all passenger needs- 2 mobile chargers; 2 cabin lamps and 1 aisle lamp; collapsible grab handle with coat hooks; anodized side food step and a soft touch grab handle. Class leading space and compact exterior dimensions. Safe journey for passengers- Seat belts on all seats, Rugged engine sub-frame, High mount stop lamp, Child safety lamp, Side impact beam, Load Sensing Proportionate Valve- prevents vehicle from skidding; Anti Roll bars- provides stability to vehicle even on high turns; Front and rear fog lamps offer better visibility in winters. BENEFITS to OPERATORS: A true 7 seater where no passenger has to compromise. This gives potential to charge at par or slightly more than an Innova and hence maximizes revenue. All this at a price less than that of the Tavera and the Xylo. Impressed by comfort and convenience passengers will demand the same every single time they travel. That means additional business and at higher revenue. Fresh styling will make luxury taxi operators feel proud- Leather strapped steering wheel, leather covered gear lever and leather covered hand break lever;

24

Can be easily maneuverer and easy to drive and park in the city. Comfort to drive on highways and long journeys; fatigue free driver, happy passengers, higher referrals and returns. Allows you to increase revenues and reduce Cost. VFM-Value for Money More compact than Tempo Traveller, being equally spacious and perhaps more comfortable and cheaper in price. Winger has more car like behavior.

2) Price and Economic Benefit- It is about telling the price details of the product to the customer and what will be his monthly effective saving. Example: Vehicle: Tata Winger (13 + 1) Diesel. BS-III A/C vents for individual, Power Steering, fog lamp, 5+1 gear, provision for music system, Specifications. Ex. Showroom price = 7, 56,927 Discount = 18, 000 TATA loyalty discount = _____8, 000 7, 38,927 Insurance = 25,000 Registration= 35,000 (5 yr. permit, 2 yr. fitness, 3 months road tax) On-Road Price = 7, 90,927 80% Funding from finance will be done at 8% interest rate. There is option for 3 year and 4 year Loan Tenure. Down-payment of 1,63,385 to be made and monthly EMI of 17, 972 for 4 year tenure and 22, 511 for 3 year tenure to be paid. The vehicle gives 38,000 (approx.) monthly savings effectively. Refer Appendix-II. 3) Documentation: Requirements for loan documents from Customers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 2 photo Pan-card photo copy. Voter ID photo copy. Last 6 months banking statement. Track of previous loan repayment (if any). Photocopy of electricity bill. Last 2yrs ITR returns proof. Commercial License. For financing of vehicle, previous R/C and insurance photocopy (if any) is also required.

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10. Property paper photocopy 11. Company certificates 12. 2-photo, pan-card, voter-card of guarantor.

4.3 Components of Selling

Quality selling skills part: Intro, product outlay, FABing

Effort (By sales person)

Quantity time put in for actually interacting with people

Direction target right people

Figure 4

Results

4.4

Sales persons Time Utilization

15%

Time (in %)
Getting to Customers Waiting for Customers 40% 25% 20% Collectinging Personal background and details Face to face selling Figure 5

Research says only 10-15 % time of a sales person is spent on face to face selling. So, a sales person should focus on increasing the time spent on face to face selling, talking more to relevant customers in person to increase the business.

4.5 The New Sales Model

10% create rapport 20% qualify 30% present solution 40% close
Then: Old model of selling
Figure 6

40% relationship & trust 30% identifying needs 20% present solution 10% close
Now: New model of selling

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4.6 Value and Quality

Value refers to the perceptions a consumer has of a product's benefits when weighed against its cost. Value can be measured both qualitatively--the emotional or psychological pleasure a consumer derives from a product or service--and quantitatively, in terms of the actual financial gain it wins them. Quality refers to the way in which a product or service relates to its competitors, or else conforms to a set of measurable standards.

4.7 Value Proposition

A value proposition is a statement that defines the results our customers will get when they do business with us. When we create a very specific value proposition, it makes customers more interested in buying our products or services. If our proposition is weak, few people will be interested in what we are offering because they are looking for tangible results

4.8 Marketing
Marketing describes how a company chooses what types of products and services to offer and how it distributes, prices and promotes those products and services.
Competitive Analysis Differentiation Product /Service Positioning Consumer Analysis Segmentation

Marketing strategy Product Communication Distribution

Competitive Offerings

Perceived Customer Value

Market <-- Price

Cost --> Operations

Figure 7

Profit

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4.9 Consumer Perception

Consumer perception describes how customers and potential customers view a company and its products and services. Customer perception is important to businesses since it can influence consumer behavior, which ultimately affects the profitability of a business. Consumer perceptions are influenced by a variety of factors. Besides the actual outcome i.e. did the product or service deliver the expected function and did it fulfill the customers need the whole process of consumption and all interactions involved are of crucial importance. Customer perceptions are dynamic. With the developing relationship between customer and company, his perceptions of the company and its products or services will change. The backbone of any customer perception management and measurement system, however, is thorough market research and surveys.

4.10

The Role of Marketing Research

Businesses often conduct market research to gain insight into consumer perceptions and preferences. Understanding how and why consumers make the choices, they do are integral to providing products and services that will be in demand and promoting those products and services effectively.

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CHAPTER 5: RESEARCH FRAMEWORK

5.1 Research Purpose Project Name: To re-focus on Tour & Travel Segment for TATA Winger Project Scope: Work with dealership to cover tour and travel segment

The purpose of this research is to identify the reasons for depleted or restricted market share of TATA Winger, think of feasible suggestions and strategies to be considered by TATA Motors Ltd so that TATA Winger can be re-established, consolidate and make their presence felt in large way in Tour and Travel (Taxi) segment.

5.2 Research Objective

Primary: To uncover the perceptions and attitudes those are driving the lack of sales volume of TATA Winger in Tour and Travels segment Secondary:

To understand the consumer preference for purchasing a vehicle in Tour and Travels segment To come up with the suggestions for the above problems To generate demand for TATA Winger in tour and Travels segment

5.3 Research Design

The design used for the research was exploratory as well as descriptive research. The research was done in two stages. Exploratory research An exploratory research was done in the first stage which helped in giving a proper insight about the project. All the factors that affect the customer were decided by interviews with the service executives, mechanics, sales executives and existing customers who came at Automobile Sterling for their vehicle servicing. All the other information regarding the prices, ranges and the end customers of TATA Winger were collected by consulting the stakeholders of the company who gave their expert views regarding the same. Based on these

29

factors a questionnaire was developed which was used in the second stage of the research. Descriptive Research This research was done in the second stage where the questionnaire was used to collect information like the product awareness of TATA Winger, preference of factors for Tour and Travel Segment while purchasing a vehicle and general perception of customers about TATA vehicles. The data will be edited to ensure consistency across respondents and to locate omissions. The edited data will be analyzed and inferences will be made from them.

5.4 Data Collection Methodology

Primary data collection Secondary data collection

Primary data collection included simple questionnaire. This questionnaire has both closed end questions as well as opened end questions. Primary data was collected in both ways while meeting people personally and through telephonic conversation. Personal interview and telephonic conversation was taken with the Taxi drivers and Tour and Travels operators. Secondary research was by consulting my organization mentor, sales and service executives, documents such as Sales and Competitor Guide of TATA Winger and Internet.

5.5 Research Approaches

Survey Research has been used in this project for following reasons: Can accommodate large sample sizes and generalize results Ease of administering and recording questions and answers Ability to use statistical analysis Factors and relationships not directly measurable can be studied.

5.6 Research Instrument

A structured questionnaire with closed as well as open ended questions was used as research instrument.

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5.7 Contact Methods

Personal Interview and Telephonic Conversations with Taxi drivers and Tour and travels Operators was conducted. Personal interactions with mechanics and sales executives were also done.

5.8 Pre-Testing
Purpose of a pre-test is to ensure that the questionnaire meets the researchers expectation in terms of the information that will be obtained. It is a pilot run. A few known local people were selected as respondents for conducting pre-test. After the pre-test I have rephrased some of the questions (which are irrelevant for the study) and also the flow of the questionnaire.

5.9 Sampling Plan

Sample Size- 55 Sampling Time- 4 week Sample Type- Non-Probabilistic Convenient Sampling Sampling Unit- Taxi Drivers/Owners, Fleet Owners, customers of TATA Winger Sampling Area - Noida and Ghaziabad.

5.10

Sampling Limitations

Some of the limitations of the study are as follows: Sampling error Study limited to some parts of NOIDA and Ghaziabad only.

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 Situational factors. Time constraint (4 weeks) Intentional/unintentional response and non-response errors by the respondents

Since the sample size is too small any findings from this study cannot be generalized to the population. We can only infer and make comments about the sample set of customers considered.

5.11

Scaling Technique

Scaling technique used here is Likert scale. Likert scaling involves a list of statements relating to attitude in question. In Likert scaling we can also check the degree of agreement and disagreement. Each degree of agreement and disagreement is given a score on a level of 1 to 5 or it can also be rated on at a scale of 1 to 5. Score is computed by summing up these scores from all the statements.

5.12

Analysis tool

MS Excel 2010 was the only software used to interpret the data and analyze it subsequently.

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CHAPTER 6: DATA INTERPRETATION

6.1 Exploratory Data
Following is the data collected from the initial exploratory research conducted, by interacting with service mechanics, sales executives and customers of Tata Motors at Automobile Sterling and random venues. 6.1.1 Interaction with Mechanics (summary)

In mechanics view, new Winger (diesel) is good vehicle. Problems like steering noise, engine vibration, shockers, and brakes have been already looked after and sorted out by TATA Motors. The new vehicle has good pickup and engine is powerful. Dual AC also works very well. Though there are some niggles which need to be sorted out. Clutch cable hardens pretty soon in new vehicles. There is need for hydraulic clutch. Tepid cover packing leakage is inevitable as plastic cover provided cuts through the rubber. Spare parts unavailability is major concern, as all spares are not available at service centre at a time and that stretches the agonizing waiting time for the customer. Fittings in the bonnet are compact but complex, which affects cooling system of engine. Also if the vehicle is stranded midway, a Tour and Travels driver may not be able to attend the complicated fittings in bonnet by self.

6.1.2

Interaction with Sales Executives (summary)

Winger is a cost effective, value for money vehicle for Tour and Travels (Taxi) segment. At tourists places like Jammu and other hill stations Winger is seen in multitude, well equipped to tackle sharp turns and powering on tried and tested TCIC engine for climbing slopes. Also lots of Winger have been seen in cities like Bengaluru of South India. But in plain areas of North India esp. Delhi-NCR, Taxi segment dont find it attractive.

Improving engine is important BS-IV compliant vehicles needed for boosting sales in Delhi-NCR Clutch plate develops problem before first 10,000 kms. Maintenance is concern for Tour and Travels with respect to time and money. Spare parts delivery from Pune takes long time.

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6.1.3

Competitor Analysis (as per consumers): Tata Winger Vs. Force Tempo Traveller

Tata Winger: It has Tata powertrain 2L TCIC engine More compact with still lots of seats and space inside More car like behavior in interiors as well as performance Looks fresh and different from Tempo Traveller It is cheaper. Its service after sales not good due to spare parts unavailability and that makes it unreliable on long routes. It is seen more in schools, not much in Tour and travel (Taxi) as maxi-van. Force Tempo Traveller: It has 2.5 L Mercedes engine It is huge and seats need to be altered for more comfortable ride More like minibus/truck in interiors as well as performance. Body paint of the vehicle starts coming off soon. It is costlier. It has better service after sales and that makes it reliable on long routes. It dominates Tour and Travels (Taxi) as maxi-van and mini bus.

Detailed FACT SHEET comparison in Appendix-III (a).

Tata Winger Platinum Vs. Toyota Innova (G and GX) Winger Platinum has individual seats and better legroom even in last row. It has aggressive price which gives you maximum value for your money. It comes with factory fitted 2 DIN Music system with USB port It lacks in power window, engine immobilizer and has 2L engine compared to 2.5L in Toyota Innova It lags in after sales service.

Tata Winger Platinum Vs. Chevrolet Tavera (LS B4 and LT L) Winger Platinum provides equal comfort and convenience for all with a bigger passenger area and considerably bigger interiors. It comes with standard fitment of 2 DIN Music system with USB port and provision for LCD.

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Tata Winger Platinum Vs. Mahindra Xylo (D2 and E4) With an almost comparable size, Winger Platinum has bigger interiors The respondents felt Tata Winger Platinum to be more comfortable Winger Platinum comes with factory fitted 2DIN Music system with USB port. Detailed FACT SHEET comparison in Appendix-III (b).

6.2 Descriptive Data

Following is the interpretation of the data collected in the Descriptive Research, the second stage of my research through the questionnaire (Appendix-IV) asked to a sample of 55 respondents. The respondents included Taxi drivers and Tours and Travels fleet owners.

6.2.1

Designation of the respondents of the questionnaire

20% 33%

Owner Driver Both

47%

Others

Figure 8

80% of the respondents were Taxi drivers or had driven commercial vehicles, so getting the big picture of the technicalities related to the issue of liking or disliking the vehicle are pretty high. Having 55% of them as owners as well, will help keep the data unbiased.

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6.2.2

Number of Vehicles

more than 30 30 20 15 10 5 0 0 7% 7%

27%

respondents
60%

10

20

30

40

Figure 9

This shows most of the respondents were small fleet owners or drivers associated with them. The survey also includes 27% of large fleet owners views. Though the small fleets make numbers in this region, it is the big vendors who dominate. But the customers having one or two vehicles are equally or more important.

6.2.3

Number of Tata vehicles respondents own

1 2 3 Other

20% 7% 26%
Figure 10

47%

Almost all the respondents or their fleet owners had atleast one TATA vehicle. This shows brand TATA has large following and why is it the market leader in commercial vehicle segment. General perception about Tata vehicles is positive, but lately some better service and up-graded features provided by Tata Motors competitors have tried to make a dent in Tata Motors market share. Also, the owners of competitors vehicles and their drivers tend to influence negatively Tata Motors loyalists and probable consumers.

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6.2.4

How do you rate the factors while buying the vehicle?

Mileage Maintenance Spacious Low Down Payment Color/Shape Safety features Running cost per km Engine After sales Service Brand Interiors Visibility Others Figure 11 0 10 7% 7% 33% 33% 20 30 40 50 13% 13% 13% 13% 20% 33% 20% 93%

100%

Others Visibility Interiors Brand After sales Service Engine Running cost per km Safety features Color/Shape

Low Down Payment

Spacious Maintenance Mileage

60

Fuel efficiency (mileage) of the vehicle and Maintenance (cost and time) primary concerns in minds of Taxi drivers and fleet owners, with almost 100% of them favoring mileage and maintenance above all other options. The consumers in this segment, especially the small fleet drivers and owners, cant afford their vehicle to be stranded too often for maintenance, as it is source of their income which helps them repay their EMI and feed their families. Engine Specifications (Power, Torque and NVH), Visibility of vehicle on road and Resale value (Others) are major secondary concerns of Taxi drivers and fleet owners. After considering these mentioned factors, they look for other factors in the vehicle before purchase.

37

6.2.5

Satisfaction with present vehicle/fleet of vehicles

No 47%

Yes 53%

Figure 12

47% of the respondents werent happy with their vehicles. Citing following reasons:

High maintenance Poor service

It was also observed that due to average running per month of the vehicle being 8000 km., the vehicles develop wear and tear in an year or two. This tells that almost half of the respondents related to tour and travels (taxi) segment are unhappy with their vehicles and gives any automobile company an ample opportunity to convert their dissatisfactions into sales. Providing better service to not only new, but even old customers is key to happy and loyal customers. AMC to all the customers will be helpful to keep the customers happy. And proper after sales feedback from customers on lines of pre-sale follow-up, will make customers feel like a part of the company. When services provided to customers are optimized, customers will be loyal to the company come what may.

38

6.2.6

Higher price implies better quality ?

Maybe 7%

Yes 20%

No 73%
Figure 13

Three-fourth of the respondents clearly called this a Myth that High price implies better quality. According to them it all depends on the vehicles maintenance cost, fuel efficiency and performance. If a vehicle is able to earn good savings per month, then it is a quality vehicle even if its initial cost of purchase was low.

6.2.7

Do you know about Tata Winger ?

Yes 73%

No 27%
Figure 14

Tata Winger has been around for more than 4 years now, and though threefourth (40) of my sample knew or have heard of Tata Winger before, the fact that one quarter (15) of this small sample (55) was still unaware is concerning if seen in context of the population (Tour and Travel Taxi drivers and Fleet Owners in Noida and Ghaziabad).

39

6.2.8

Popular source of information on Tata Winger

Tv ads Word of Mouth Tata Showroom Newspaper ads Radio ads Activities Internet 0 0

11% 73% 22% 22% Number of repondents 11%

Visit by Tata sales consultants

22% 7% 0 10 20 30 40 50

Figure 15

Others

According to the survey, overwhelming 73% have claimed Word of Mouth to be their source of information on Tata Winger. Here word of mouth includes information from friends, relatives, acquaintances, fleet owners, drivers and mechanics. 7% others are those whose knowledge of Tata Winger was restricted to seeing it on road only. This led to following observations: Not all 73% respondents who claimed to know about Tata Winger were fully aware of the vehicles FAB, as their major source of information word of mouth cant be relied upon. The company needs to drastically increase other sources of awareness on Tata Winger, and not rely on good old Word of Mouth publicity which is misinformative most times as identified while talks with the respondents. Either the advertisements for Tata Winger through mass media, sales consultants and dealers activities like canopies is below par or it is not reaching the right target audience this project is meant for- Tour and Travel (Taxi) segment.

40

6.2.9

Rate TATA Winger on various parameters

X-Axis or Likert Scale (1 to 5) index: 1= below average, 2=average, 3=good, 4=very good, 5=outstanding 1) Design and Style
25 44%

20
15 10 5 0 1
Figure 16

25%

25% Number of respondents 5%

4%

More than half of the respondents feel Tata Wingers design and style to be good, very good or outstanding. One-fourth find the looks average. And other quarter find the exterior styling of the vehicle as below average. 2) Comfort and Space
30 25 20 15 10 5 0 1
Figure 17

47%

35% Number of respondents

15%

0
2

4% 3 4

54% rated the comfort and space in Tata Winger as above average, of them 35% rated the vehicle as very good, when comfort and space mattered. No one seemed unsatisfied with the vehicles comfort and space, as the other 47% also found the vehicles comfort and space to be at par.

41

3) Pricing
18 16 14 12 10 8 6 4 2 0 33% 25% 16% 18% Number of respondents 7%

1
Figure 18

The vehicle is priced strategically lower or at par with its competitors, and that shows in the survey. One-third of the respondents rate the vehicle good in pricing and one-fourth rate it very good, while 18% find it at par. 16% who wanted the vehicle for cheaper price, thought that unless Tata Motors improves Tata Wingers after sales service, even such strategically low price seems costlier to them. 4) Air Conditioning
25 20 15 10 5 0 0 1
Figure 19

42%

25%

29% Number of respondents

4% 2 3 4

The chilling factor of dual AC in New Tata Winger showed up well in this survey, getting support all hands down. Overwhelming 42% think Air Conditioning is good in this vehicle and 29% find Tata Wingers AC very good. Even the other one-fourth of the respondents feel that AC in the vehicle is at par with competitors.

42

5) Engine Power and Performance

30 47% 25 20 15 10 5 0 1
Figure 20

27% 20% Number of respondents 5% 0 2

The 1948 cc Turbo Charge Internal Cooling Engine producing 91 ps power and 190 Nm torque, is seen to be good by 47% of the respondents. And overall 80% of the respondents seem satisfied by the Engine specifications and performance of Tata Winger. The monocoque construction of the vehicle ensures low levels of noise, vibration and harshness (NVH) just like cars. The vehicle mileage is 10-12 km per liters, as reported by old customers. Though, one-fifth of the respondents find the engine to be unsatisfactory, due to reasons such as continuous innovation in technology by competitors, making the consumer demands promiscuous. 6) Turning Radius
40 35 30 25 20 15 10 5 0 1
Figure 21

73%

27%

Number of respondents

0 0 2 3 4 0 5

73% of respondents think that the turning radius of 5.6m (Platinum) / 6.4 m (other variants) for Tata Winger is all right. It is not small enough but on lower side when compared to its competitors. They find it a decent tradeoff for better internal comfort and space in Tata Winger.

43

7) Weight and Stability

30 25 20 15 10 5 7% 7% 0 1
Figure 22

53%

33% Number of respondents

0
2 3 4

The survey shrugs away any myth of the vehicle being too bulky for its tires or unstable on high speeds, as only 7% claimed such a thing which is quite miniscule data. 53% think the vehicle to be at par in terms of weight and stability in its category, while other 40% rate it good or even better on this parameter.

8) Ground Clearance
40 35 30 25 20 15 10 5 0 1
Figure 23

67%

13%

20%

Number of respondents

0
2 3 4

0 5

Ground Clearance of 165 mm is seen as average for the vehicle Tata Winger. Though this is for ease in passengers boarding the vehicle, Taxi drivers and owners prefer a bit higher ground clearance to avoid any unforeseen damage to the vehicle at bad roads while touring.

44

9) Safety Features
30 25 20 15 10 5 13% 0 1
Figure 24

47% 40%

Number of respondents

0
2 3

0 5

Though Tata Winger do have other safety features like individual seat belts, child safety lock, anti-roll bars, brakes with lspv, side impact beam, high mount lamps and rugged engine sub-frame. But absence of ABS and airbags, the trending new safety features today, raises doubts in minds of the respondents, of which 40% call the vehicle below average and 47% call it average in terms of safety features.

10) Maintenance Cost

35 30

60%

25
20 15 10 5 0

40%

Number of respondents

0 1
Figure 25

0
4

0 5

Already seen at start of the data interpretation that consumers in this segment rate maintenance of the vehicle as their first priority while purchasing a vehicle.

45

Here maintenance cost includes both the money and time spent on maintenance of the vehicle. It is concerning to note that consumer perception on Tata Wingers maintenance cost is bleak, as 40% find it below average and for other 60% also it is just average. Brighter aspect is that small niggles in the vehicle are seldom. But according to the respondents, there were following issues or perceptions among them about Tata Winger: Due to compact and complex engine setting in the bonnet, driver is not able to diagnose and try rectify problem, if any, by himself. Delay in maintenance at service centre. Costly spare parts.

11) Spare Parts

40 35 30 25 73%

20
15 10 5 0 1
Figure 26

27%

Number of respondents

0 2 3

0
4

0 5

73% of the respondents find Tata Wingers biggest weakness is spare parts frequent unavailability at not only the usual basic service centers, but also at the Tata authorized service centers like Automobile Sterling. At times they have to make do with alternate arrangements like locally made spare parts, and other times the wait for original spare parts for Tata Winger seem just unending. This brings huge losses to the fleet owners and drivers. Also this is the major reason for 40% consumers thinking Tata Winger is high on maintenance cost. There is a need for Sales executives and service executives to align with workshop for Tata Winger models.

46

12) After Sales Service

30 25 20 15 10 5 0 1
Figure 27

53% 47%

Number of respondents

0 2

0 4

0 5

Spare parts problem creates non-amiable conditions between the customer service and the customers. The delay in maintenance keeps the service men at Tata service centers and the customers of Tata Winger at logger heads. Almost 50% of the respondents are unhappy with Tata Wingers after sales service, and such a data is not conducive for any vehicles strong market share and weakens consumer loyalty. 13) Overall (Value for Money)
30 25 20 15 10 5 0 1
Figure 28

53%

27% 13% 7% 0 2 3 4 5 Number of respondents

77% respondents rated Tata Winger average or above average Overall, which shows why it has managed 30% market share in Noida and Ghaziabad region. But it would be desirable for Tata Motors Ltd that Tata Winger is rated good or above good by more people, and not just 34% respondents when the question for it being a Value for Money vehicle or not is raised.

47

6.2.10 Cumulative scores of Likert Scale Adding up the scores for each of the 13 different parameters on which the Taxi drivers and fleet owners were asked to rate Tata Winger, this survey came up with the following cumulative scores, which shall help us to put things in perspective regarding Tata Winger.

Cumulative Scores
Design n Style Comfort n space Pricing A/c Engine Power n performance turning radius Weight n stability Ground clearance 131 125 132 114 95 88 70 84 126 136 162 159 171 Overall After Sales Service Spare Parts Maintenance Cost Safety features Ground clearance Weight n stability turning radius Engine Power n performance A/c Pricing Comfort n space Design n Style

Safety features
Maintenance Cost Spare Parts After Sales Service

Overall

Figure 29

48

My Observations from the above graph: Best features (consumers perception) in Tata Winger: Air Conditioning (Dual AC) Pricing (aggressive initial cost of the vehicle) Comfort and Space (including interiors and seats)

Other satisfactory and competitive features (consumers perception) in Tata Winger: Design and Style (external) Weight and Stability Engine power and performance Turning Radius Value for Money Ground Clearance

Unsatisfactory features (consumers perception) in Tata Winger: Spare Parts After sales service Maintenance Cost (time and money) Safety features

6.2.11 Respondents willing to buy or recommend Tata Winger after my pitching

Maybe 25% No 40%

Yes 35%

Figure 30

35% respondents were optimistic about buying/recommending Tata Winger after getting really aware of the vehicle. But 40% were still reluctant to buy/recommend Tata Winger as the information they got from others and also their knowledge about the vehicle made them negatively biased. Meanwhile 25% said they will prefer the vehicle once the issues related to below par after sales, spares and maintenance are sorted out and some features are revamped.

49

CHAPTER 7: REPORTS AND DISCUSSION

7.1 Comments
Consumers and probable consumers are liking three aspects of Tata Winger- Air Conditioning, Pricing and Comfort and Space, the most. The AC chills pretty soon, and diesel engine behaves very well with it. Tata Winger is priced very aggressively that makes Innova seem terribly expensive. The ingress of Tata Winger Platinum is better than Xylo and Tavera. The dashboard in Winger is disappointing. The sliding door has a lock mechanism that does not slide close when parked on the incline. In totality, it is an excellent people mover. They find the design and performance of the vehicle fine, though they are not too impressed by the former and would love to see 120 bhp, 2.2L engine, as noted by their comments. The present 2L DI TCIC engine is pretty good till first 1 lakh kms., after that maintenance bill raises slightly. Clutch plate hardens was a common problem among all the reviews. Weight and Stability is ok. But demand from consumers did raise to prefer a slightly lower roofline and wider tyres for assured stability at speeds higher than 80 kmph. No airbags and ABS in the vehicle are the only reasons for rating the vehicle low on safety, though looking at vehicle equipped with safety belts and LSPV, the demand from consumers is promiscuous. But one aspect of the vehicle the consumers completely detest and cannot be risked to denial, is the vehicle maintenance cost. It would be wrong to presume here that vehicle has too many faults to raise the maintenance cost. No, it is definitely not such a case. Rather it is the unavailability of proper spare parts and at many service centers unavailability of any spare parts is the factor, which makes the vehicle maintenance cost and time spent by vehicle at service center high. The other problem highlighted in the data interpretation is the below par After Sales Service for Tata Winger. It is necessary to further strengthen the bond with the customer even after the product has been sold to him or else a lack of loyalty can develop between the customer and the organization. And with the Word of Mouth showing up as a major source of promotion for Tata Winger, it is certain that the dissatisfied customers shall affect the prospects of new sales of Tata Winger in negative way.

Finally, Tata Motors have got the Product, Price and Place of Tata Winger almost right, and their R&D is continuously in look for the improvements and making the product even better. But they seem to miss out on Promotional aspect of Tata

50

Winger. Even after 5 years of toiling around on Indian roads, proper consumer awareness on Tata Winger and its new improved variants is either low or incomplete. And this is giving chance for competitors to mislead Wingers probable consumers by misinforming them about Tata Winger. This raises a need for nationwide promotions for the vehicle to reach the targeted segments and inform them what the vehicle is truly capable of delivering.

7.2 SWOT Analysis

STRENGTHS: Comfortable and Spacious for all passengers seated Aggressively priced Strong Brand name of TATA Strong R&D team at Tata Motors Ltd. WEAKNESSES: Inventory management of spare parts After Sales Service Lack of awareness about the vehicle among target segment OPPORTUNITIES: Fastest growing market for utility vehicles in India. Improving Road infrastructure in semi-urban areas THREATS: Entry of foreign players in Indian automobile sector. Stiff competition from Force Motors, Toyota, Mahindra and Mahindra.

It is imperative for Tata Motors to convert these weaknesses into Wingers strengths, turn these threats into Wingers opportunities, capitalize on opportunities to get Wingers success and further bolster its present strengths to boost Wingers sales in Tour and Travels (taxi) segment.

51

7.3 PEST Analysis

Political: Governments increased spending on infrastructure will directly increase demand Stringent emission norms and safety regulations could bring new complexities and cost increases for automotive industry WTO, Free Trade Agreements and other similar policies could make the market more competitive

Economic: High material cost increases cost of production Slower growth rate of India this year Costlier finance Rising fuel prices Increased income will increase demand for small passenger carrier. Social: Uncompromising and demanding passengers. Rapid urbanization of semi urban regions Seeking Value for Money- consumer behavior Customer preference for diesel over petrol vehicles. Technological: Constant up-gradation required to keep up with competitors Emission Control Technologies to meet BS-IV norms.

Present political and economic scenarios need to be gauged and based on that plans to be made and decisions to be taken. A watch on social pulse is necessary through market research and surveys like this. Technology is upgrading exponentially, and its a requisite to keep the vehicle abreast with technology and make changes to meet environmental norms. A mere introduction of BS-IV model in Winger will raise the sales, since right now the vehicle cannot be registered in name of company in Delhi-NCR region and have to be registered in name of individual, making probable consumer companies reluctant to buy.

52

CHAPTER 8: CONCLUSION
Marketing is one of the most powerful forces in todays society. Targeted and repetitive communication of a products key benefits can create a need that perhaps did not previously exist, thus influencing consumer purchase behavior by solidifying the idea that such products are essential to their daily lives. In addition to encouraging brand loyalty, marketing can also be an important tool in influencing consumer perception of value and quality. Tata Motors has done well enough to suit most of the target customers needs with Tata Winger. And reaching the end of this research, it is realized that the diminutive market share of Tata Winger is not what it is destined for. Winger is a trend setting vehicle in its segment and it should have come up as a winner all the way.

SUGGESTIONS
Here are the suggestions I have come up with at the end of this research: 1) Consumer Awareness: A strong need is realized to make the consumers more aware about the vehicle. This can be done through: More activities like Canopies and Demonstrations to be done. More and repeated TV commercials on various national channels time to time to get noticed by target consumers. More advertisements in newspapers and magazines, esp. automobile magazines. After Sales Feedback: Customers must be followed up even after sales and feedback must be taken and worked upon. Making customers realize that they are being heard by the organization, make them feel they are part of the organizational family. Proper After Sales Feedback is backbone of effective Customer Relationship Management. Efficient implementation and awareness of Tata Alert and Tata Connect for Winger customers. Ensure better service: The service centers, especially the authorized ones must ensure better service to the customers. Taxi segment runs vehicles at average 8000 kms per month, so however good the builtup of the vehicle maybe, service is required. AMC is very much a necessity for vehicles in this segment. The vehicle owner cant let vehicle stranded in garage for long, so efficient and effective servicing is a dire necessity. Effective implementation of Rapid Repair, Speed-o-Service and Service on Wheels facility.

2)

3)

53

4)

Ensure Spare Parts Availability There is need for sales team and customer service team, both to align with the workshop for Wingers models. Gauging the need for essential spare parts and keeping a stock of them in the store is requisite. And pre-ordering the forthcoming demand by forecasting it looking at the previous trends will help the Inventory management of the spare parts. Add in features: After talking to the consumers and probable consumers, I would suggest to add look into adding some of the following features in Tata Winger keeping an eye at the price to be still aggressive: Power Window Engine Immobilizer ABS 120 bhp, Dicor 2.2 engine Hydraulic Clutch BS-IV compliant all variants Option for more shades of solid and metallic to enhance looks. Adjustment options in steering wheels. Spruce up the dash board. Provide missing glove box in Winger maxi-van.

5)

Limitations of this Project

Only one dealership of Tata Motors commercial vehicles, Automobile Sterling -Noida, was dealt with during this project. Contacting and getting response from Tour and Travel (Taxi) operators by phone was difficult, as they were often too busy to respond to calls that did not mean business to them. Two months time was a short period to acclimatize, observe, learn, understand, visit field for vehicle demonstrations, pitch for the vehicle to new customers as well as conduct a market research survey. During the tenure, I also had to face some hostile respondents who refused to give time, or else there would have been larger sample size. Biasness of some respondents in responding intentional/unintentional due to lack of proper awareness about the vehicle raises scope for some error.

54

Final Note
With growth of automobile sector, the industry & its channel partners are facing shortage of skilled and efficient manpower. With this vision Tata Motors has collaborated with institutions like National Institute of technical Teachers Training and research (Bhopal) & Amity university (Noida) to offer competency based training Programme- Tata Certified Works Manager. To cater to increasing need for technical technicians, Service Training Centers (STC) are being upgraded, to provide automotive maintenance & repair training. Mobile Training Centers (MTC) have been setup to increase the reach of training to rural& remote areas. To ensure dealer productivity & profitability, Tata Motors launched EXCEED, a program that helps in improving process efficiency at dealerships, through monthly reviews. A Sales Training Academy was also established, under EXCEED program, to provide comprehensive learning & delivery management solutions. To enhance technical capabilities and provide superior technical services and support for field operations, Tata Motors has set up a state-of-art Service Engineering Tech Centre. This Tech Centre will also partner with the ERC & Project Management teams to improve serviceability and mantainability of new products. To support ambitious strategy of Tata Motors Service network expansion, Tata Motors has launched a new concept of 2 Bay Workshops, of around 1200 sq.ft. area, for small commercial vehicle applications. With a strong network of over 1600 workshops, this unique initiative is one of the best in the country and is a USP for Tata Motors.

55

Appendix - I
WingerMaxi-Van

56

57

Appendix II

Earnings Fixed Cost

OPERATING ECONOM ICS TEM PLATE FOR WINGER OPERATORS INNOVA-GX XYLO-E4 TAVERA Ex-Show room Price Registration appx (subsidised) Insurance appx On-Road Funding = 80% Rate of Interest (Flat) Tenure of Loan EMI Driver Cost & Misc Expenses Fixed Cost per M onth Fixed Cost / km ( assuming 8000km per month) 1025000 23000 30000 1078000 862400 8.00% 4 23716 5000 28716 745000 30000 24000 799000 639200 8.00% 4 17578 3000 20578 820000 21000 25000 866000 692800 8.00% 4 19052 5000 24052

Winger 756927 35000 25000 816927 653541.6 8.00% 4 17972 6000 23972

TEMPo Traveller 950000 35000 33000 1018000 814400 8.00% 4 22396 6003 28399

3.59

2.57 12 40 3.33 60000 4500 4 0.30 0.40 0.20 4.23 6.81

3.01 16 40 2.50 30000 4500 4 0.60 0.75 0.20 4.05 7.06

3.00 10 44 4.40 50000 4000 4 0.32 0.33 0.20 5.25 8.25 38000

3.55 10 44 4.40 50000 5500 4 0.44 0.33 0.20 5.37 8.92

Running Cost Fuel Efficiency 12 Fuel Price 40 Fuel Cost/ km 3.33 Tyre Life( km) 30000 Cost of one Tyre 5500 No. of Tyres 4 Tyre Cost per km 0.73 scheduled Maintenance/ km 0.40 Breakdow n maintenance ( this is a buffer expense) 0.20 Running cost per month / km 4.67 TOTAL COST / km 8.26 PROFIT/MONTH

If a Tour and Travels (Taxi) operator charges about Rs. 13 per km. from passengers and assuming his vehicle runs 8000 km approx. , then the operator shall save about Rs. 38,000 per month, as total cost per km calculated in above economy sheet for Winger is Rs. 8.25. (8000 x 13) (8000 x 8.25) = Rs. 38,000.

58

Appendix-III (a)
Competitor Analysis: Tata Winger vs. Force Tempo Traveller FACT SHEET
TATA WINGER SPECIFICATIONS Seats Engine Type Engine Displacement Winger Deluxe 12 + D / 13 + D 1948 cc Winger Luxury 9+D 1948 cc Luxury 12 + D / 13 + D 2596 cc Force Tempo traveller WB 3050 9+D 4 cylinder, DI, TCIC 2596 cc

4 cylinder, TCIC (power train) 4 cylinder, TCIC (power train) 4 cylinder, DI, TCIC

76 HP @ 3200 RPM / 82 Max. Power Max Torque Length(mm) Breadth (mm) Height (mm) Wheel Base (mm) Turning Radius (m.) Ground Clearance (mm.) Kerb Weight (kg.) Gross Weight (kg.) Front Suspension Rear Suspension Shock absorber type Wheel Fuel tank Warranty Serv ice Showroom price (Rs.) FEATURES Adjustable Headlights Fog light front & rear Side Stepper Digital Odometer Digital clock Child Safety Locks Side Impact beams Rear seat headrest yes yes yes yes yes yes yes no yes yes yes yes yes yes yes yes yes no yes yes no no no no no no coil springs Double parabolic leaf spring Hydraulic 185 R14, Radial 60 L 1.5 Lac / 1.5 years 10 free serv ices 7.58 90 HP @ 4300 RPM 4920 1905 2445 3200 6.4 165 1740 2670 McPherson struts with coil springs Double parabolic leaf spring Hydraulic 185 R14, Radial 60 L 1.5 Lac / 1.5 years 10 free serv ices 8.3 90 HP @ 4300 RPM 4920 1905 2050 3200 6.4 165 1740 2850 McPherson struts with with Anti-Roll bar Parabolic Leaf spring with Anti-Roll bar Telescopic 215 / 75 R 15 70 L 3 Lac / 3 years 12 free serv ices 8.8 HP @ 3200 RPM 5415 1975 2550 3350 6.5 190 2020 3510 Parabolic Leaf spring

76 HP @ 3200 RPM / 82 HP @ 3200 RPM 4935 1975 2550 3050 6.5

190 Nm @ 2000-3000 RPM 190 Nm @ 2000-3000 RPM 215 Nm @ 1800-2000 RPM 215 Nm @ 1800-2000 RPM

Semi-elleptical leaf spring with anti-roll bars Semi-elleptical leaf spring with anti-roll bars Telescopic 215 / 75 R 15 70 L 3 Lac / 3 years 12 free serv ices 10.5 no yes yes no no no no no no

Electronic Multi trip meter yes

59

For other additional features of Tata Winger Appendix-I can be referred.

Appendix-III (b)
Competitor Analysis: Tata Winger Platinum Vs. Toyota Innova Vs. Chevrolet Tavera Vs. Mahindra Xylo FACT SHEET
S P E C IF IC A T IO N S Seats Engine Type Engine Displacement M ax. P o wer (P S) M ax To rque Length(mm) B readth (mm) Height (mm) Wheel B ase (mm) Turning Radius (m.) Gro und Clearance (mm.) Kerb Weight (kg.) Gro ss Weight (kg.) Fro nt Suspensio n Rear Suspensio n T A T A WIN G E R Winger P latinum 6 +D 4 cylinder, TCIC (po wer train) 1 948 cc T o yo t a Inno v a G and GX 7 or 8 4 cylinder, CRDe 2500 cc C he v ro le t T a v e ra LS B 4 and LT L 7 or 9 4 cylinder 2500 cc 80 HP 1 Nm 86 4435 1 680 1 765 2685 5.6 M a hindra X ylo D2 and E4 7 or 8 mDI o r mEagle CRDe 2500 cc 95 o r 1 3 HP 1 21 o r 240 Nm 6 4520 1 850 1 895 2760 5.4

B rake Fro nt/Rear Wheel Fuel tank Warranty Service Sho wro o m price (Rs.) F E A T UR E S Fo g light fro nt & rear yes Side Stepper yes P o wer Windo ws no Sco tch Guard Treatment o n Seat Fabric yes Leather Co vered Gear Lever yes 2 to ne Interio r Theme yes Child Safety Lo cks yes A rm rests and lumbar suppo rt in 1 & 2nd ro w st A rm rests o nly Sliding and reclining 2nd ro w seats A ll seats reclining Engine immo bilizer no leather wrapped steering wheel yes Captain Seats in 3rd ro w yes Co at ho o k yes Two Din M usic System with USB po rt yes M o bile Charger Fro nt and B ack ro o f lamp and middle aisle lamp yes P assengers A rea(sq. m) Legro o m(2nd ro w mm.) Headro o m(2nd ro w mm.) Legro o m(3rd ro w mm.)

91P S @ 4300 RP M 1 P S @ 3600 RP M 02 1 Nm @ 2000-3000 RP M 90 200 Nm @ 1 400-3400 RP M 4520 4585 1 940 1 760 2050 1 760 2780 2750 5.65 5.4 1 65 1 76 1 675 2300 M cP herso n strut with co il Do uble wishbo ne with spring and A nti-Ro ll bar stabilizer, co il spring Do uble parabo lic leaf spring with anti-ro ll bars Fo ur link with lateral ro d Ventilated Disc/Leading Ventilated Disc/Leading trailing-Drum trailing-Drum 1 R1 8P R Radial Tubeless 205 / 65 R1 tubeless 85 4, 5, 60 L 55 L 1 Lac / 1 years .5 .5 1 free services 0 8 9 and 1 0 no no yes no no no no and yes yes no / reclining,sliding in 7 seater o nly yes no no no no 2 fro nt map lamp o nly 5.4 940 11 15 830 4.7 920 950 670

Independent do uble wishbo ne, to rsio n bar spring Semi elleptical leaf spring Disc/Drum 205 / 65 R1 5

Independent, co il springs, do uble wishbo ne types multi-link co il springs

Disc/Drum 205 / 65 R1 o r 21 / 75R1 tubeles 5 5 5,

8 and 9 no yes yes no no yes yes 7 seater captain seats o nly

6.5 and 7.5 no yes yes no no no no arm rests o nly o n 7 seater reclining in 7 seater o nly yes no no no no 2 and 1 yes 4.5 860 970 4.6 950 970 760

7 seater captain seats o nly no no and yes no no and yes no 1 no and 1 fro nt and rear ro o o f lamp

60

Appendix-IV Questionnaire for Tour and Travels Sector Name*: Date*: / /2012 Company: Designation*: o Owner o Driver o Both o Others _________ Location*:

No. of Vehicles (approx.): more than 30

10

15

20

30

No. of TATA vehicles*: _________ Q1)* How do you rate the factors you consider while buying the vehicle? (Tick ) a)
o o o o Mileage Low down payment Running cost per km Brand o o o o Maintenance Color/Shape Engine Interiors o o o o Spacious Safety features After Sales Service Visibility

b) Any Other factors which you consider while buying the vehicle? __________________

Q2)* Are you satisfied with your present fleet of vehicles? (Tick any one) o Yes If no, why? _______________________ o No

61

Q3)* What is the average running of each of your vehicle/s per day? _________ Km

Q4) For what purpose you use your present vehicles? _____________________________________________________________

Q5)* Do you believe that higher price implies better quality? (Tick any one) o Yes o No o Maybe

Q6) What is your perception about TATA Motors vehicles? _____________________________________________________________ _____________________________________________________________

Q7)* Do you know about TATA Winger? o No o If yes, how? ( Tick )

o TV commercials o Newspaper Ads o Internet o Word of Mouth o Radio Ads o Visit by TATA Sales Consultants o TATA Showroom o Activities

Others

62

Q7) Rate TATA Winger (diesel) on the following parameters out of 5: Rating Design and Style* Comfort and Space* Pricing* Air Conditioning Engine Power and Performance* Turning Radius* Weight and stability* Ground Clearance* Safety features* Maintenance Cost Spare Parts After Sales Service Overall* (Is TATA Winger Value of Money?) 1=below average, 2=average, 3=good, 4=very good, 5=outstanding Remarks

Q8) Would you buy yourself / recommend (TATA Winger) to your friends and relatives? o Yes

63

o If No, why? _______________________________________________________ o Maybe Q9) If you buy TATA Winger (diesel), for what purpose you would like to use it? ______________________ Q10) Any advice for improvements? __________________________________________

Note:- (*) marked questions are mandatory to be answered. THANK YOU FOR YOUR VALUABLE TIME

64

Appendix-V Value Chain Tata Motors

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References
1. India Brand Equity Foundation [Online] http://www.ibef.org/ 2. Kotler and Keller [Book] Marketing management, 13th edition. Chapter conducting marketing research and forecast 3. Prof. Ramesh Venkateswaran [Speech] at IIM Bengaluru on 7th April 2012 on Sales For Startups http://nsrcel.us4.listmanage.com/track/click?u=1ef0a626e0b9a4479d00c1671&id=b29f4ddb2d& e=fb21fbfa2b 4. Society of Indian Automobile Manufacturers (SIAM) [Online] http://www.siamindia.com/

5. TATA Motors Official Website [Online] http://www.tatamotors.com/ 6. TEAMtalk [Journal] January 2012 and March 2012, Internal house journal of Tata Motors 7. Winger Platinum Sales Guide [Official Document] 8. Winger Sales Brochure [Official Document]

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