A Summer Internship Project Report on

MARKET ANALYSIS OF 3 WHEELER (CARGO) AND PROMOTION OF

TATA ACE ZIP
Submitted in partial fulfillment of the requirement for the degree of
Post Graduate Diploma in Management Marketing
By
Chourasia Sanket Girish
Roll No. C2M- 13
Under the guidance of
Prof. Kadambini Kumari

A study conducted for
Tata Motors Ltd
At


Indira School of Business Studies
Tathwade, Pune 411033
2012-14
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Acknowledgement

Learning is a continuous process; the more you learn the more is there to learn. In this
learning process we meet several individuals, and each and every person helps us to learn
something, which all pile up together and become an experience.
I got to learn a lot during my Internship Project. At this moment of substantial enhancement
of my knowledge, I find no word to express my gratitude towards those who helped me
directly or indirectly in making this report successfully. I am thankful for the assistance
received from various individuals, specially the respondents who supported me by
answering the questions without any hesitation. They have truly been sportive, and without
their co-operation this was not possible. Therefore I want to thank them a lot.
I would like to thank his excellence Mr. Amarendra Jha (Manager CVBU) who guided as
an Internship Guide and encouraged to successfully understand and implementing the
various concepts involve in the project report.
I would like to thank Tata Motors (Jamshedpur), Mithilla Motors (Jamshedpur) and all of its
employees who helped me to achieve success in this project in every possible manner.
To being with I feel to express my deep gratitude and sincere thanks to my Academic
project guide Prof. Kadambini Kumari for his priceless and valuable guidance,
encouragement for completion of work.







By
Chourasia Sanket Girish







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Certificate from college




This is to certify that Mr. CHOURASIA SANKET GIRISH is a bonafide student of this
Institute and has successfully completed his project entitled MARKET ANALYSIS OF 3
WHEELER (CARGO) AND PROMOTION OF TATA ACE ZIP at TATA MOTORS
for partial fulfillment of course Post Graduate Diploma in Management (Marketing) from
Indira School of Business Studies.









Dr. Renu Bhargava Prof. kadambini kumari
Director, ISBS Internal Guide



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Certificate from company







































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Executive summary
TATA MOTORS is Indias foremost vehicle manufacturer with a countrywide network of
factories and marketing offices. TATA MOTORS has made significant contributions to the
nation building process by way of quality products, services and sharing expertise. Its
commitment to sustainable development, its high ethical standards in business dealings and
its on-going efforts in community welfare programmers have won it acclaim as a responsible
corporate citizen. TATA MOTORs brand name is synonymous with vehicle and enjoys a
high level of equity in the Indian market. It is the only vehicle company that figures in the
list of Consumer Super Brands of India.
Tata Motors Limited has pioneered the production of commercial and passenger vehicle in
India since 1954 and 1991 respectively and today it is Indias largest passenger and
commercial vehicle manufacturing company. Tata Motors has a domestic market share of
68% in MCV/HCV segment, 64% in the LCV segment and 32% in the multi utility
segment. Its product development capabilities, scales and low import content give it cost
advantages and its wide distribution network gives it a competitive advantage. TATA
MOTORS has been exporting its products since 1969 and currently exports about tenth of its
out-put in over 50 Countries. The company intends that the exports should account for 20%
of its automobile sales. Though commencing operation a modest way Tata Motors has
grown consistently by upgrading its technology and developing its human resources and
today it holds the coveted position of being a premier company in the Indian private sector
in terms of sales, gross profit. Capital employed, dividend paid and net worth besides being
acclaimed and respected for social conscience.
The objective of the project is to know the preference of the consumers when buying a
pickup vehicle, To gather descriptive information about the usage of the vehicle, To get
feedback about the vehicle from the existing users, To check the awareness among the user
and non-users about new features of TATA ACE Zip, To find out the problems faced by the
pickup vehicle owners and promote Tata ace zip



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The project was divide into two parts,
1) Survey of the 3 wheeler cargo segment
2) Promotion of Tata ace zip
Keeping the above objectives in mind a set of questionnaire was made and feedbacks were
collected by visiting the existing customers in the market and its competitors as well. For
research, we applied random sampling; the area was East and West Singhbhum. There were
97 respondents (10 respondents are existing customers and 87 respondents are from
competitors). Both primary and secondary data were collected and survey method was used
for collection of the data.
By this research, I came to know that companys brand name, its stylish appearance and
comfort level playing vital role in the promotion of TATA ACE-ZIP by spreading word of
mouth publicity. TATA MOTORS manufactured TATA ACE-ZIP to overtake the market of
three wheelers. The product is a success in all the markets of India, except some areas of
east. It is so because of the bad road conditions. TATA ACE-ZIP is facing tough
competition from the market leader Piaggio. There are other players also in the market who
plays a vital role in competition, like, Bajaj and Mahindra.





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Table of Contents

S N Contents Pg. No
1 Introduction 12-13
2 Industry / Company overview 14-35
3
Review of Literature/ Theoretical
Background
36-48
4 Objectives 49-50
5 Research Methodology 51-56
6
Data Analysis , Results and
Interpretation
57-87
7 Observation and findings 88-89
7 Conclusions 90-91
8 Limitations of the project 92
9 Recommendations 93-94
10
Annexure

95-101



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List of tables
Table
no.
Tables Pg No
1 Ownership 58
2 Use of vehicle 59
3 Vehicle owned 60
4 Important attributes 61
5 Duration 62
6 Trips 63
7 Distance covered 64
8 Loading 65
9 Earning 66
10 Vehicle preferred while buying 67
11 Where vehicle get serviced 68
12 Service expenses 69
13 Mileage 70
14 Rating for the vehicle 71
15 Awareness of Tata ace zip 72
16 Want to buy Tata ace zip 73
17 Ownership 74
18 Purpose of purchasing 75
19 Prior vehicle owned 76
20 Vehicle financed 77



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List of figure
S N Figures Pg No
1 Ownership 58
2 Use of vehicle 59
3 Vehicle owned 60
4 Important attributes 61
5 Duration 62
6 Trips 63
7 Distance covered 64
8 Loading 65
9 Earning 66
10 Vehicle preferred while buying 67
11 Where vehicle get serviced 68
12 Service expenses 69
13 Mileage 70
14 Rating for the vehicle 71
15 Awareness of Tata ace zip 72
16 Want to buy Tata ace zip 73
17 Ownership 74
18 Purpose of purchasing 75
19 Prior vehicle owned 76
20 Vehicle financed 77



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List of Tables
S N Table Pg No
1 Duration of Tata ace zip 78
2 Travelling route 79
3 Distance covered by Tata ace zip 80
4 Mileage of Tata ace zip 81
5 Loading per trip 82
6 Earning 83
7 Rating of Tata ace zip 84
8 Issue came across while using Tata
ace zip
85
9 Recommended to others 86








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List of figures
S N Figure Pg No
1 Duration of Tata ace zip 78
2 Travelling route 79
3 Distance covered by Tata ace zip 80
4 Mileage of Tata ace zip 81
5 Loading per trip 82
6 Earning 83
7 Rating of Tata ace zip 84
8 Issue came across while using Tata
ace zip
85
9 Recommended to others 86












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Abbreviations
S N Figure Pg No
1 CV Commercial vehicle
2 HCV Heavy commercial vehicle
3 SCV Small commercial vehicle
4 LCV Light commercial vehicle
5 ICV Intermediate commercial vehicle
6 SCVC Small commercial vehicle cargo
7 SCVP Small commercial vehicle passenger
8 CVBU Commercial vehicle business unit
9 PCBU Passenger car business unit
10 CAGR Compound annual growth rate
11 MNC Multinational company
12 R & D Research and development

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Chapter 1
Introduction
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Introduction
(1.1) the Project:-
SCV segment is the fastest growing segment in the country as well as around the world.
There are two types of SCV, CARGO & PASSENGER. The vehicles which are used for
transporting goods and commodities are called cargo and the vehicles which carry
passengers is called passenger vehicle. Cargo and passenger both are available in three
wheelers as well as four wheelers in the market. Customers choose vehicle according to their
needs. There are number of companies who manufacture SCV like Tata, Piaggio, Bajaj,
Mahindra and Force. However, this SCV segment with four wheelers was first introduced in
the Indian market by Tata Motors. Now, Tata Motors has launched a product called ACE
Zip to compete with the 3 wheeler (cargo). SCV give good scope of business in cities area
because government is restricting entry of large truck in cities area. So, TATA have grand
launch of SCV to increase the business opportunities in urban area.

(1.2) Purpose of the project:-
The main motive of any business is to earn profit as much as possible and this can be
possible only if the product manufactured by the company is completely sold in the market
and the company is able to gain the total profit. This research is important because it help to
know the feedback of the customers. It will also help the company to understand the
consumer buying behavior and the main factors which forces the customer to select a
particular vehicle brand which will further help the company to know their short comings if
they have to increase the sale of their vehicle.

(1.3) scope of the project
This research has been confined to Jamshedpur, Adityapur, Chandil, Chaka, Jadugoda,
Musabani, Saraikela, Kharsawan, and Sini. 3 wheeler (cargo) below 1 ton capacity was
considered as competitors during the survey.
Time frame of the project
The study was done from10may -24june. Timing was 9:00 AM to 5:00 PM

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Chapter 2
Industry / Company Profile
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(2.1.1)About the industry

The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy.
India is emerging as one of the world's fastest growing passenger car markets and second
largest two wheeler manufacturer. It is also home for the largest motor cycle manufacturer
and fifth largest commercial vehicle manufacturer.
India is emerging as an export hub for sports utility vehicles (SUVs). The global automobile
majors are looking to leverage India's cost-competitive manufacturing practices and are
assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India
can emerge as a supply hub to feed the world demand for SUVs.
India also has the largest base to export compact cars to Europe. Moreover, hybrid and
electronic vehicles are new developments on the automobile canvas and India is one of the
key markets for them. Global and Indian manufacturers are focusing their efforts to develop
innovative products, technologies and supply chains.
The automotive plants of global automakers in India rank among the top across the world in
terms of their productivity and quality. Top auto multinational companies (MNCs) like
Hyundai, Toyota and Suzuki rank their Indian production facilities right on top of their
global pecking order.

(2.1.2)Key statistics

The amount of cumulative foreign direct investment (FDI) inflow into the automobile
industry during April 2000 to January 2013 was worth US$ 7,653 million, amounting to 4
per cent of the total FDI inflows (in terms of US$), as per data published by Department of
Industrial Policy and Promotion (DIPP), Ministry of Commerce.
The Indian small and light commercial vehicle segment is expected to more than double by
2015-16 and grow at 18.5 per cent compound annual growth rate (CAGR) for the next five
years, according to a report titled, 'Strategic Assessment of Small and Light Commercial
Vehicles Market in India' by Frost & Sullivan.
The light commercial vehicles (LCV) market - both passenger and goods carrier is estimated
to register a sales growth of around 20 per cent during FY 2012-FY 2015, as per a RNCOS
report titled, "India LCV Market Outlook".
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India is the world's second-largest heavy commercial vehicle market. The RNCOS report,
"India MCV and HCV Market Outlook", observed that infrastructure boom and emergence
of hub and spoke model, among other factors have given a new dimension to the medium
and heavy goods carrier commercial vehicles' sector in India. It is anticipated that the sales
of medium and heavy commercial (M&HC) goods carriers will increase at a CAGR of more
than 10.5 per cent during 2011-12 to 2014-15.
In another RNCOS research report, "Indian Automobile Sector Analysis", the production of
passenger vehicle is forecast to grow at a CAGR of around 11 per cent from 2009-10 to
2012-13, and domestic volume sales at a CAGR growth of around 12 per cent.

(2.1.3)Major developments and investment

Yamaha Motor Co (YMC) has announced to set up its fifth global research and development
(R&D) centre at its Greater Noida facility
Honda Cars India Ltd (HCIL) plans to invest Rs 2,500 crore (US$ 462.11 million) at its
Tapukara plant in Rajasthan. The company plans to set up a new assembly line for car with
an installed annual capacity of 120,000 units
Isuzu Motors plans to set up its greenfield manufacturing facility in Andhra Pradesh (AP),
for pickup trucks or LCV and SUV, with an investment of Rs 1,500 crore (US$ 277.26
million) over 5-7 years
Volvo plans to expand car operations in India. The company looks to drive in new models in
the market apart from increasing its sales network
Global ultra-luxury car maker, Rolls-Royce Motor Cars, plans to launch exclusive 'India
Edition' cars in 2013. The car maker would come up with a customized edition of its
Phantom and Ghost models for Indian buyers
Escorts Ltd has inked a partnership with Italy-based BCS SpA to distribute and sell the
speciality Ferrari brand of tractors in India
TVS Motor and BMW AG's motorcycle division have announced a deal to jointly develop
bikes that would give the Indian automaker access to BMW technology. TVS Motor and
BMW will develop motorcycles in the sub 500 cc segment
Bajaj Auto and Kawasaki Heavy Industries plan to take their partnership to Indonesia, under
which select Bajaj products will be assembled at the Kawasaki facility and distributed
through its network
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Bajaj Auto also plans to become the first Indian automobile company to manufacture a street
bike, with a made in India motorcycle tag, in the US. The Indian company will manufacture
this product for its partner KTM AG.





































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(2.1.4)Indian Automobile Industry SWOT Analysis






Domestic market is large
Government provides monetary assistance for
manufacturing units
Reduced Labour cost
Strengths
Infrastructural setbacks
Low productivity
Too many taxes levied by government
increase the cost of production
Low investments in Research and
Development
Weakness
Reduction in Excise duty
Rural demand is rising
Income level is at a constant increase
Opportunities
Increasing rates of interest
Too much competition
Rising cost of raw materials
Threats
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(2.2.1)About the company

Mission
To be passionate in anticipating and providing the best vehicles and experiences that excite
our customers globally.

Vision
Most admired by our customers, employees, business partners and shareholders for the
experience and value they enjoy from being with us.

Culture
Accountability
Customer and product focus
Excellence
Speed

Value
Inclusion
Integrity
Accountability
Innovation
Concern for the environment
Passion for excellence
Agility

(2.2.2)History of TATA Group/TATA Motors

TATA GROUP Founded by Jamsedji Tata in 1868, the Tata Groups early years were
inspired by the spirit of nationalism. The Group pioneered several industries of national
importance in India: steel, power, hospitality and airlines. In more recent times, the Tata
Groups pioneering spirit has been showcased by companies like Tata Consultancy Services,
Indias first software company, which pioneered the international delivery model, and Tata
Motors, which made Indias first indigenously developed car, the Indica, in 1998 and
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recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end
of 2008. In terms of market capitalization and revenues, Tata Group is the largest private
corporate group in India and has been recognized as one of the most respected groups in the
world. It has interests in steel, automobiles, information technology, communication, power,
tea and hospitality. The Tata Group has operations in more than 85 countries across six
continents and its companies export products and services to 80 nations. In the past few
years, the TATA group has led the growing appetite among Indian companies to acquire
businesses overseas in Europe, the United States, Australia and Africa - some even several
times larger - in a bid to consolidate operations and emerge as the new age multinationals.
The TATA group is 11th most reputable company in the world according to Forbes.
Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over
7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat power trains. The company's dealership, sales,
services and spare parts network comprises over 3,500 touch points.
Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged as
an international automobile company. Through subsidiaries and associate companies, Tata
Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia.
Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened
Tata Daewoo Commercial Vehicles Company has launched several new products in the
Korean market, while also exporting these products to several international markets. Today
two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo.
In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and
coach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is
being expanded in other markets. In 2006, Tata Motors formed a 51:49 joint venture with
the Brazil-based, Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India - the plant is located in Dharwad. In
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2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand, and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors'
joint venture with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in
Rosslyn, north of Pretoria. The plant can assemble, semi knocked down (SKD) kits, light,
medium and heavy commercial vehicles ranging from 4 tons to 50 tons.
Tata Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South
America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh,
Ukraine, and Senegal.
The foundation of the company's growth over the last 68 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers, scientists and technicians
the company's Engineering Research Centre, established in 1966, has enabled pioneering
technologies and products. The company today has R&D centres in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Spain, and the UK.
It was Tata Motors, which launched the first indigenously developed Light Commercial
Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace,
India's first indigenously developed mini-truck. In 2009, the company launched its globally
benchmarked Prima range of trucks and in 2012 the Ultra range of international standard
light commercial vehicles. In their power, speed, carrying capacity, operating economy and
trims, they will introduce new benchmarks in India and match the best in the world in
performance at a lower life-cycle cost.
Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the
Tata Indica, India's first fully indigenous passenger car.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata Nano has
been subsequently launched, as planned, in India in March 2009, and subsequently in 2011
in Nepal and Sri Lanka. A development, which signifies a first for the global automobile
industry, the Nano brings the joy of a car within the reach of thousands of families.
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(2.2.3)At home in the world
Anchored in India and committed to its traditional values of leadership with trust, the Tata
group is spreading its footprint globally through excellence and innovation. Each operating
company in the group develops its international business as an integral element in an overall
strategy, depending on the competitive dynamics of the industry in which it operates.
Exports from India remain the cornerstone of the Tata groups international business, but
different Tata companies are increasingly investing in assets overseas through Greenfield
projects (such as in South Africa, Bangladesh and Iran), joint ventures (in South Africa,
Morocco and China) and acquisitions.

(2.2.4)Priority markets

While individual Tata companies have differing geographical imperatives, the Tata group is
focusing on a clutch of priority countries, which are expected to be of strategic importance
in the years ahead. The regions are North America, UK, China, the Netherlands, Germany,
South Africa, and members of the Gulf Cooperation Council, Brazil, Vietnam, Thailand and
Sri Lanka.
Ratan Tata, Chairman, Tata Sons, sums up the Tata groups efforts to internationalize its
operations thus: I hope that a hundred years from now we will spread our wings far beyond
India, that we become a global group, operating in many countries, an Indian business
conglomerate that is at home in the world, carrying the same sense of trust that we do
today.
The Tata name has been respected in India for 140 years for its adherence to strong values
and business ethics. The Groups 27 publicly listed enterprises have a combined market
capitalization of some $60 billion, among the highest among Indian business houses, and a
shareholder base of 3.2 million.
In tandem with the increasing international footprint of its companies, the Group is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, recently
valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the
world.
Business week ranked the Group sixth amongst the Worlds Most Innovative Companies.
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And the Reputation Institute, USA, recently rated it as the Worlds Sixth Most Reputed
Firm.
The Tata Group has always believed in returning wealth to the society it serves. Two thirds
of the equity of Tata Sons, the Tata Groups promoter company, is held by philanthropic
trusts, which have created national institutions in science and technology, medical research,
social studies and the performing arts. The trusts also provide aid and assistance to NGOs in
the areas of education, healthcare and livelihoods. Tata companies also extend social welfare
activities to communities around their industrial units.

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

Mr. Cyrus Mistri, Chairman




















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(2.2.5) COMPANY PROFILE










Tata Motors have two business unit the passenger car business unit (PCBU) and
commercial vehicles business unit (CVBU).Tata Motors is a part of the Tata Group manages
its share-holding through Tata Sons. The company expanded its operations to commercial
vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany.
Despite the success of its commercial vehicles, Tata realized his company had to diversify
and he began to look at other products. Based on consumer demand, he decided that building
a small car would be the most practical new venture. So in 1998 it launched Tata Indica,
India's first fully indigenous passenger car. Designed to be inexpensive and simple to build
and maintain, the Indica became a hit in the Indian market. It was also exported to Europe,
especially the UK. Tata acquired Spanish bus and coach manufacturer Hispano Carrocera in
2009. In 2006 it formed a joint venture with Marco polo S.A.of Brazil and introduced low-
floor buses in the Indian Market under the name Tata Marco polo Bus. Recently, it has
acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester
brand names.
Indias 1
st
Largest
Automobiles company,
exporter and R&D
Indias 2
nd
Target Private
sector co.
Globally 5
th
Largest Bus &
truck manufacture
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Tata Motors Limited is India's largest automobile company, with consolidated revenues of
INR 1, 88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles
in each segment, and among the top in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck
and bus manufacturer. Established in 1945, Tata Motors' presence cuts across the length and
breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out
in 1954. The company's manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand),
Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005,
it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon
(Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains.
Tata Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South
America, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh,
Ukraine, and Senegal. Tata Motors is committed to improving the quality of life of
communities by working on four thrust areas - employability, education, health and
environment. The activities touch the lives of more than a million citizens. The company's
support on education and employability is focused on youth and women. They range from
schools to technical education institutes to actual facilitation of income generation. In health,
the company's intervention is in both preventive and curative health care.

(2.2.6)TATA MOTORS LTD. GLOBAL OPERATIONS

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
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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 May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the
Middle-East by the end of 2009. 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 franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4
continents.



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(2.2.7)PRESENT AND FUTURE CHALLENGES

The popular myth that Tata Motors have some distinct advantages in comparison to other
multi-national competitors especially a cost advantage as labor costs are not true as Tata
Motors has 8-9 percent of sales as compared similar percent for most multinational
companies. Also employee productivity in Tata Motors is less than 1/3rd (in $million sales /
employee) than Toyota. Another advantage in the increasing demand in its own backyard,
India due to infrastructure developments and rising GDP. India remains one of the few
developing auto markets where domestic brands have managed to keep a large presence,
Tata and fellow compatriots account for more than 60% of the passenger vehicle sales and
95% of commercial vehicle sales. There are also favorable Government policies and
regulations in place in order to help boost the auto industry. However, Tata has not been
able to capitalize on its global presence. Tata relies heavily on its sales in India and has not
yet managed to create a foothold in international markets even though it has a number of
well reputed subsidiaries. However, Tata Nano may boost its international presence, at least
in developing economies.
Though it has an advantage in India, thanks to low costs and government policies it soon
faces stiff competition from it multinational competitors all eyeing for a share in the ever
growing Indian auto sector. Earlier, a policy required majority-owned subsidiaries of foreign
car firms to invest at least $50 million in equity if they wished to set up manufacturing
projects in India and mere car assembling operations were not welcomed. An Indian cabinet
panel has since announced a new automobile policy that sets fresh investment guidelines for
foreign firms wishing to manufacture vehicles in the country. Investments in making auto
parts by a foreign vehicle maker will also be considered a part of the minimum foreign
investment made by it in an auto-making subsidiary in India. The move is aimed at helping
India emerge as a hub for global manufacturing and sourcing for auto parts. The policies
adopted by Government will increase competition in domestic market, motivate many
foreign commercial vehicle manufactures to set up shops in India, whom will make India as
a production hub and export to nearest market. Thus Tata Motors will have to face tough
competition in near future, which might affect its growth negatively.
Currently, 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
28 | P a g e

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. In
addition, 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 Republic-based 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.


(2.2.8)Achievements

Mr. Ratan Tatas vision and ambition drove Tata Motors from being just the truck
manufacturer to a successful world class car manufacturer. Let us just have a quick look at
some memorable achievements of Tata Motors under the leadership of Mr. Ratan Tata.
1991 Tata Motors launched its first passenger vehicle called Tata Sierra SUV.
1992 The company introduced a station wagon named Tata Estate (inspired from
Mercedes T-series car).
1994 Tata Sumo was launched, even on-sale now.
1998 Tata Motors history as a big milestone because the company launched 2
products, the Tata Indica and the Tata Safari in the same year.
2002 The sedan version of Indica was launched christened Tata Indigo.
2004 The station wagon based on Indigo sedan was launched called Tata Indigo
Marina. And the first global automobile acquisition was made by Tata Motors of
Daewoo Commercial Vehicle Company of South Korea.
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2005 Tata Motors launched an all-new segment of the Light Commercial Vehicle
with a sub 1.0-tonner Tata Ace mini truck.
2007 The stretched wheelbase version of Indigo was launched named Indigo XL
(the XL here refers to Extra Large).
2008 Shorter version of Indigo was introduced named Indigo CS (the CS here
refers to Compact Sedan). Also the next-generation Indica was launched called
Indica Vista. The most prestigious acquisition made by Tata Motors was of the
iconic auto brands Jaguar & Land Rover from Ford.
2009 Next-generation Indigo or sedan version of Indica Vista was introduced,
called Indigo Manza. However, the biggest outcome of Ratan Tatas most
ambitious project, the Tata Nano was unveiled. And the company acquired, a fully
built European bus manufacturer Hispano Carrocera SA in phased manner.
2010 The most refined and most advanced Tata product ever, the Tata Aria was
launched.
In recent times, Ratan Tata has supported projects like Tata Pixel, Vista and Manza hybrid.
Besides these, he has actively supported the research of cars that run on Alternative fuels,
such as Air and Water (H2O). All the mentioned vehicles are under development.

(2.2.9)JOINT VENTURE & ACQUISITIONS





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2.2.10)The product LOB (line of business) is demonstrated below:


HCV - heavy commercial vehicles
LCV- light commercial vehicles
ICV- intermediate commercial vehicle
SCVC - small commercial vehicles cargo
SCVP - small commercial vehicles passenger
TATA
Motors
CVBU
HCV
ICV
SCV-C
SCV-P
PVBU
Bus
Car
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COMMERCIAL VEHICLE BUISNESS UNIT
Trucks
1510
1512
1610
1616
2516
3015
3118
3516
4018
4923
Buses
WINGER
STARBUS
MARCOPOLO
LCV
407
709
909
1109
SCV-P
MAGIC
IRIS
WINGER
VENTURE
SCV-C
ZIP
ACE
ACE HT
SUPER ACE
Telco Line
207Ex
207RX
XENON
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As shown above Tata Motors is manufacturing as two different units:
1. CVBU : (commercial vehicle business unit) The CVBU has plants located in :
Jamshedpur
Pune
Pantnagar
Dharwaad
Luckhnow
Gujarat (anand)

2. PVBU: (passenger vehicle business unit) The PVBU has its plant located in Pune as well as
anand.
(2.2.10)Hierarchy of CVBU







The regional offices of Tata Motors ltd are located in four regions:
R O EAST Kolkata
RO WEST Mumbai (Thane)

RO NORTH Delhi
RO SOUTH Chennai
The Jamshedpur area office comes under RO EAST where the regional manager is Mr.
Habib Shahid. There are five area offices located in the east region:
1. Jamshedpur & Ranchi for Jharkhand
2. Patna for Bihar
3. Bhubaneswar for Orissa
4. Kolkata for West Bengal

Chairman : Mr. Cyrus P.Mistry
Vice chairmam : Mr. Ravi Kant
Managing Director : Mr. Karl Slym
Head CVBU : Mr Ravindra Pisharody
Head Quality : Mr. Satish Balakrishna Borwankar
Head ERC : Dr. Tim Levetron
CFO & President : Mr. C Ramakrishanan
Chief HRO : Mr Prabhir Jha

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In the state of Jharkhand Tata Motors Ltd deals with 7 Tata Motors authorized dealers at this
time:
1. Mithila Motors ltd.
2. JMA Stores.
3. ENAR Enterprises.
4. Gajraj Vahan pvt ltd.
5. Bhudhiya Agencies ltd.
6. Ganpati vahan pvt ltd.
7. R A Himmatsingha bros.

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. In
the state of Jharkhand itself around 31 TASS are located.

(2.2.11)Subsidiary companies

These are the various subsidiaries of Tata motors
Jaguar land rover
Tata marcopolo motors
Tata Daewoo
Hispano carrocera
Tata motors (Thailand)
Telcon
Tata motors European technical centre
Tata technologies
TAL manufacturing solution
HV Transmission and HVAxles
Tata auto camp
TML distribution co.




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(2.2.12)REPORTING STRUCTURE AT TATA MOTORS (CVBU)









































RSM
AM
(STATE)
RM
V.P
MM
TSM TERITORY SALES MANAGER
RSM REGIONAL SALES MANAGER
AM ASSISTANT MANAGER
RM REGIONAL MANAGER
MM MARKEING MANAGER
V.P VICE PRESIDENT
TSM TSM TSM
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(2.5)Competitors in commercial vehicle category are

Mahindra and Mahindra
Force
Piaggio
bajaj

(2.6)Joint Venture Brands

VE Commercial Vehicles Limited - VE Commercial Vehicles limited - A JV between Volvo
Groups & Eicher Motors Limited.
Ashok Leyland - originally a JV between Ashok Motors and Leyland Motors, now 51%
owned by Hinduja Group
Swaraj Mazda - originally a JV between Punjab Tractors and Mazda, now 53.5% owned by
Sumitomo Group
Kamaz Vectra - A JV between Russia's KaMAZ and the Vectra Group

















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Chapter 4
Review of Literature
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Review of literature & theoretical background

(3.1) Review of literature

(3.1.1)ICRA Research Report, June 2012:-
India is the worlds foremost producer, consumer and exporter of three-wheelers (3Ws) with
domestic sales of 5.13 lakh units and exports of 3.63 lakh units in the financial year ending
March 31, 2012 (Source: SIAM). 3Ws are widely used in India as an affordable means of
short-to-medium distance public transportation and last mile connectivity for goods
transportation. Apart from the domestic demand, India has also emerged as important export
hub for 3Ws with presence in some of the South Asian, African and Latin American markets
that are replicating Indian 3W story with rising disposable incomes but inadequate public
transport systems. Overall, the 3W industry has witnessed relatively healthy 15% CAGR
volume growth over the last decade driven by moderate domestic growth (10% CAGR) and
robust exports growth (38% CAGR).
However, the successful launch of four-wheeled Small Commercial Vehicles (mainly Tata
ACE in 2005-06) has altered the industry dynamics especially for the cargo segment,
considerably over the last five years. While high tonnage (0.75T and above) 3W cargo
segment has already made way for 4W SCVs that provide higher stability, safety, speed,
space and style; SCVs are gaining popularity even in the lower tonnage (0.5T) Cargo and
Passenger segments with introduction of some of the recently introduced smaller vehicles by
CV OEMs. While domestic 3W goods segment has DE grown at 9% CAGR, SCVs have
reported robust 21% CAGR growth over the last five years. Besides, slowing economic
growth, moderating consumer goods consumption, high inflation, increase in financing
costs, rising fuel prices, absence of fresh permits by the state governments and overall high
base has impacted domestic 3W passenger sales in FY12.

(3.1.2)Understanding the market dynamic of small commercial vehicle
In India the Small Commercial Vehicle (SCV) segment was created by the launch of Tata
Ace Zip in May 2011. This category can roughly be characterized as sub 611cc engine. This
segment competes in the prevailing three-wheeler segment on the basis of cost, durability
and new pollution control laws.
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Micro trucks are suitable for short intra-city deliveries, plying on narrow village
roads, long highway hauls carrying small bulky loads or even heavy cargo. Before the
coming of mini trucks to India, this segment was being catered by three-wheelers. With the
Supreme Court of India's ban of overloading of cargo vehicles and restrictions on the entry
of heavy commercial vehicles into city, the necessity of an intermediate segment was
observed. Tata became the frontrunner to fill the gap by launching the first micro truck of
India Tata Ace.
With the immense popularity of Tata Ace Zip, many other manufacturers from
three-wheeler segment or from Light Commercial Vehicle segment jumped into the SCV
segment.
Four-wheeler SCVs have eclipsed growth rate of the domestic three-wheeler goods segment.
Competition is likely to intensify in the passenger segment going forward. The launch of
Tata ACE (Sub 1T, 4W LCV) in 2005-06 has completely altered the industry dynamics,
with 4W SCVs increasingly replacing 3Ws due to rising aspiration levels and social prestige
attached with owning four-wheelers. 4W SCVs provide higher comfort and superior driving
experience due to car like driving, stylish looks, larger cabin space, more balanced structure,
higher speed, higher stability / safety and lower emissions. As shown in the graph besides,
the 4W SCVs have considerably outperformed 3W sales consistently over the last 6-7 years;
the contribution of 3Ws sales have reduced steeply from 71% in FY05 to 23% in FY12.
The strong growth and increasing market share of 4W SCVs has prompted several leading
3W manufacturers such as M&M (Gio, Maxx, and Maxximo), Piaggio (Ap Truck, Mini)
and Force Motors (Trump 15 and 40) to enter this segment over that last 2-3 years. The
leading domestic M&HCV player Ashok Leyland too has recently entered the segment
(through its JV with Nissan) by launching its 1.25T SCV Dost. On the other side, the
market leader Tata Motors too has been proactive in terms of product innovations by
launching newer variants like Super Ace (1.25T) & Ace Zip (0.6T).
We expect competition to further intensify in the SCV segment over the medium term as
existing players ramp-up their product offerings and new local players (like Atul Auto, JS
Auto) / Chinese players enter the market. With higher tonnage 3W segment already
eliminated, the competition is now intensifying in lower tonnage (0.5T) segment with launch
of products like Tata Ace Zip, M&M Gio and Piaggio Ape - Mini Truck.
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Moreover, the SCV manufacturers are increasingly setting their eyes on the 3W passenger
segment. Tata Motors has already launched passenger variants (Tata Magic - a passenger-
variant of Tata Ace, Tata Iris a passenger variant of Ace Zip, Tata Winger) that have
evoked encouraging response and are increasingly replacing 3Ws used for longer distance
inter-city transports. With rising tides, Bajaj Auto that dominates 3W auto-rickshaw
segment - too has been prudent enough to envisage an upgrade to 4Ws and has recently
unveiled its first 4W passenger variant RE60. Benefiting from higher mileage (35 kmpl)
and lower emissions (60 g/km of CO2), RE60 aims to capitalize on growing demand for
safe, environment-friendly and fuel-efficient means of urban public transport that could
eventually replace the 3W auto-rickshaws. Overall, the entry of bigger OEMs with deep
understanding of the Indian automobile industry and strong brands, established product
portfolios, solid supplier/vendor base and wider dealer network/distribution reach could
further cannibalize the domestic 3W sales going forward.
(3.1.3)Subrata Ray, Senior Group Vice President, ICRA Research:-
"However, the successful launch of four-wheeled Small Commercial Vehicles (mainly Tata
ACE in 2005-06) has altered the industry dynamics considerably over the last five years.
The high tonnage three-wheeler cargo segment (0.75 tones and above) has already made
way for four-wheeler SCVs that provide higher stability, safety, speed, space and style.
The SCVs are increasingly gaining popularity even in the lower tonnage (0.5 tones) cargo
segments with the introduction of smaller vehicles by CV OEMs recently. While the
domestic three-wheeler goods segment has de-grown at nine percent CAGR over the last
five years, SCVs have reported robust 21 percent CAGR growth over the same period.
Moreover, slowing economic growth, moderating consumer goods consumption, high
inflation, increase in financing costs, rising fuel prices, absence of fresh permits by the state
governments and overall high base has impacted domestic three-wheeler sales in FY12.
Despite the near-term headwinds, we expect the 3W industry to report a moderate volume
CAGR of 7-8 percent over the next five years. We expect the long-term sales growth to be
the highest in the exports segment, followed by that in the passenger carrier segment and the
lowest in the goods carrier segment due to intense competition from the four-wheeler small
commercial vehicles Ray added.
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The Commercial Vehicle Megatrends India 2013 conference, which took place in Chennai
on February 26-27, 2013, brought together more than 30 expert speakers and 300 delegates
to network and debates the technologies and trends that are shaping Indias commercial
vehicle industry.
(3.1.4)Frost and Sullivan Press Release, Mumbai, India, July 19, 2012:-
Frost & Sullivan has revealed that the Small and Light Commercial Vehicle (SCV and LCV)
market in India is set for robust growth due to macro-economic parameters such as
infrastructure development, upcoming Special Economic Zones (SEZs) across the country,
and urbanization. According to Frost & Sullivan, alongside these key parameters, future
demand for these vehicles is likely to be driven by the following factors:
Abundance of small lanes in urban, semi-urban, and rural areas in India where it is easier to
maneuver SCVs and LCVs
SCVs are being used as last-mile transportation mode in many rural and semi-urban areas
where public transportation is scarce. A SCVs performance is better in terms of driving in
rough terrain, passenger comfort, and number of customers ferried, compared to a three-
wheeler
Indian cities are moving towards hub-and-spoke model due to which SCVs and LCVs are
allowed to ply inside the city, while heavy vehicles are allowed only outside city limits
The forthcoming complimentary Frost & Sullivan Analyst Briefing (AB) titled, Strategic
Assessment of the Small and Light Commercial Vehicles Market in India would delve into
various aspects of the SCV and LCV market in India. The webinar would be hosted by Tura
Ali Khan, Program Manager, Automotive & Transportation Practice, Frost & Sullivan
South Asia, Middle East, and North Africa, and would be held on Wednesday, July 25,
2012, at 3:30 pm IST.
The Indian SCV and LCV market is the fastest-growing segment in the world. With a
market size of 353,620 units in 2011, it is expected to grow at a compound annual growth
rate (CAGR) of 18 percent in the next 5 years to reach 0.83 million units by 2016. Keeping
this in mind, this Frost & Sullivan AB would analyze aspects that would help LCV and SCV
manufacturers to increase sales in India, opportunities for original equipment manufacturers
(OEMs) to take advantage of the pricing gaps in existing products in the market, and various
41 | P a g e

opportunities and challenges prevalent in the Indian SCV and LCV market. This AB will
benefit marketing and product planning personnel, along with component manufacturers and
distributors of CV manufacturers.
"At present there are immense opportunities to be explored in this segment, and many
international OEMs are setting up their plants in India to tap this segment. Both Indian
OEMs and multinational entrants are planning new products/variants with feature and price
differentiations," observes Turab Ali Khan. "There are huge gaps in vehicle availability with
regards to the Gross Vehicle Weight (GVW), pricing, and power, currently. Hence, this
situation can be exploited to tap further growth in this market."
(3.1.5)Frost and Sullivan Press Release, Mumbai, India - 30th July, 2012:-
Economic changes in India have fuelled growth of the commercial vehicle (CV) market and
other factors have helped skew the market in the favor of the small commercial vehicle
(SCV) and light commercial vehicle (LCV) segments. Just entering its rapid growth phase,
the SCV and LCV market in India is the fastest growing in the world and is expected to
continue growing for the next 5-10 years.
New analysis from Frost & Sullivan, Strategic Assessment of Small and Light Commercial
Vehicles Market in India; finds that sales of small and light CVs in India stood at 353,620
units during 2010-11. This is expected to grow at a CAGR of 18.5 per cent for the next 5
years with sales volumes reaching a mark of 827,920 units by 2015-16. SCV goods carrier is
expected to account for around 70 per cent of this volume.
The Indian CV market is polarizing towards the small and light CV segments with the
market share of medium CVs (MCVs) declining. This trend is intensified by many factors.
For instance, the restriction on medium and heavy CVs' entrance into metro cities has made
it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of
goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW)
capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures
with local majors is expected to make it very competitive, with many new and better
products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok
42 | P a g e

Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due
to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their
lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive
Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among
other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a
good business opportunity in growing global markets such as Mexico, Brazil, Africa and
China. Domestic companies can attract high volumes as these products provide similar
configurations at lower costs.
"Designing the right product to be placed strategically in the market is critical for the long-
term growth of the OEMs," concluded the Analyst. "The best combination of product and
partner will ensure technological superiority a better market share of the OEM."
(3.1.6)The Hindu Business line Mumbai, May 10:-
Tata Motors has launched a new four-wheel, small passenger carrier, Magic IRIS, and 600-
kg smart micro truck, Ace Zip, priced at Rs 1.95 lakh and Rs 1.9 lakh (ex-showroom Thane
near Mumbai), respectively.
The companys Magic IRIS is a 3-4 seater small passenger carrier and is a better substitute
for passenger-carrying three-wheelers.
Magic IRIS is a better alternative to auto rickshaws and other similar three-wheeler
passenger carriers. This small passenger vehicle segment is doing well and we hope people
accept this vehicle, the Tata Motors President, Commercial (CVBU), Mr Ravi Pisharody,
told reporters here today.
The IRIS is equipped with a 611-cc, water-cooled engine with 11 HP power. The vehicle
comes with a warranty of one year or 36,000 kilometres. It will be available in four colours
arctic white, ruby red, school yellow and jet black.
The Ace Zip comes with a warranty of 36,000 km or 12 months and is the only vehicle in
the sub-600 kg category to be powered by a water-cooled engine.
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Tata Motors has been a pioneer in creating and growing the small commercial vehicles
market in India with the Tata Ace and the Tata Magic. With the introduction of Magic IRIS
and Ace Zip, the company will more comprehensively address the burgeoning need of
public transportation and goods movement, the Tata Motors Managing Director (India
Operations), Mr P.M. Telang, said in a statement.

(3.8)PRODUCT DESCRIPTION

The Tata Ace Zip is a micro-truck launched in May 2011 by Tata Motors in India. It is in
competition with the prevalent three-wheeled goods carriers from Bajaj
Auto, Piaggio, Mahindra and Force Motors. The new vehicle was positively received by the
users. The initial sales figures are motivating. The Ace Zip has yet again created another
historical event in the commercial vehicle industry. TATA Ace Zip is produced in Pantngar
plant of Tata Motors.

Tata Ace Zip is marketed as a micro truck in India. Priced between at Rs.1.9 lakhs INR, the
company aims to convert three-wheeler users to 4-wheelers. One of the ideas that prompted
the launch of this vehicle was to develop more opportunities of self-employment in the
country. Moreover there was a need for an efficient last mile vehicle, TATA has found the
gap in the market and released Ace Zip. The 611 cc engine delivers a power of 11.3 hp at
3000 gives a tough competition to Piaggio's mini truck (3-wheeler). It has a permissible
loading capacity of 600 kg. It also has a modern cabin compared to its three-wheeler rivals.
It is best suited for use by villagers in carrying goods over short distances.



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(3.4) 4 Ps of TATA ACE zip

Product

Being 4 wheeler; gives higher status
Safer and comfortable than 3 wheeler.
Capacity of carrying the load up-to 600kgs.
Easy to travel in rural areas.
Innovative 1 cylinder radiator diesel engine
All weather protection
4 wheel stability with load.

Price

The company targeted customers who were willing to pay higher price for extra value
provided to them and also vehicle is designed to reduce the operating cost.
TATA ACE zip is a winning concept with 4 wheeler functionality and Price close to that of
3 Wheelers


Place

Availability of the product at right place and at right time
City, Small Town, Villages and Urban belts in India

Promotion

Communication Channels:
Print Media- The Apki Safalta Ka Pahiya Advertisement.
Public Relations Generated a lot of Positive Press in the Launch Period and also by
gaining International Awards.
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Television 1st LCV Brand used extensive ad on T.V. Ads Communicating new
opportunities that Ace Present.

(3.5)Segmentation

Geographic segmentation:

Rural areas-Rural villages with population of over 10000.
Urban areas-Semi-urban areas, small towns with population between 20000-50000.

Demographic segmentation:

Age- 20 to 34, 35 to 49 years.
Gender-male.
Occupation-
First time LCV purchasers
Farmers
Small trade

Behavioral segmentation:

Benefits- 4wheeler benefits i.e. comfort, style, safety.
User status-1st time 4 wheeler users and existing 3-wheeler users etc.

(3.6)Targeting

Three wheeled and four wheeled goods carriers from bajaj auto, piaggio, mahindra and force
motors. The company majorly aims to convert three wheeler user to four wheeler.
To develop more opportunities of self-employment in the country.
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Vehicle that could take light loads over short distance.
Suited for use by villagers in carrying goods over short distance and long distance.

(3.7)Positioning

Positioning statements:

Indias First Micro Truck
A product for all your needs in lesser price
feel good about the job
Trustworthiness of ace
Transportation at the last mile
(3.8.2)FEATURES OF TATA ACE-ZIP





HIGHER
EARNINGS
HIGHER
REVENUE
LOWER
OPERATIONAL
COST
SMART
VEHICLE
COMFORT
SAFETY
STYLE
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(3.9)PROMOTIONAL ACTIVITIES

There are various activities organized by TATA MOTORS for the promotion
of their products (vehicles).Few of the promotional activities done by them for
promoting

TATA ACE-ZIP were:-
*Loan mela
*On road show
*Newspapers Ads
*Advertisements
*Sales promotion

(3.10)CUSTOMER ACQUISITION SALES PROCESS

Tata motors follow a strategically based customer acquisition sales process. During this
acquisition process customer is looked forward in following stages:
Customer Acquisition Process/Sales Planning Process
Enquiry/Contact Quotation Advance Payment Vehicle Delivery













C0 C1 C2 C3
Prospect Customers
(Universe)

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





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Chapter 4
Objective and Scope of the Project
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Objectives:

To study the preference of the consumers when buying 3 wheeler (cargo).
To analyze the different attributes of the vehicle.
To get feedback about TATA ACE Zip from the existing users.
To check the awareness among the user and non-users about TATA ACE Zip.
To find out the problem faced by the vehicle


















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Chapter 5
Research Methodology
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Research Methodology

(5.1) Research


Research is the search for and retrieval of existing, discovery or creation of new information
or knowledge for a specific purpose. Research has many category from medical research to
literary research. Consumer Marketing Research is a form of applied sociology which
concentrates on understanding the behavior, whims and preferences, of consumers in a
market- based economy.
The field of consumer marketing research as a statistical science was pioneered by Arthur
Nielsen with the founding of the A Nielsen Company in 1923. In any marketing research
defining the problem is the most important problem in a very and precise manner. So that
the researcher understood the area of study involved Research is process of systematic and
in depth study or search for any particular topic, subject or area of investigation backed by
collection, compilation, presentation and interpretation of relative details of data. It is a
careful search or enquiry into any subject matter which is an endeavor to discover or find
out valuable facts which would be useful for further application or utilization. Research
methodology is a way to systematically solve the research problem. It may be understood as
a science of studying how research is done systematically. In it we study the various steps
that are generally adopted by a research in studying his research problem along with the
logic behind them. It is necessary for the researcher to know not only the research method
but also the methodology. Statistical investigation require systematic collection of data, so
that all relevant groups are represented in the data. To determine the customer preference,
for example, the researcher might study 200 customers in a certain geographical area. It
must be ascertained that the group contains people representing variables such as income
level, race, education and neighborhood.







53 | P a g e

(5.2)Research design
Descriptive and Exploratory research design was used to conduct this research. Descriptive
research design helps to know the perception of influences during the purchase of a
particular brand of vehicle. And it is also important to explore the various factors which can
attract them during the purchase of vehicle.

(5.3)Research tools and techniques
Communication approach was basically structured questioning, that is personal interview
with the help of printed questionnaires. To serve the purposes, two types of Questionnaire
was made , one for the existing customers of TATA ACE-ZIP and the other for its
competitors users like Piaggio, Mahindra, to gain maximum relevant information within
minimum time.

(5.4)Source of data
As for the data it was essential to depend upon both primary and secondary.

(5.4.1)Primary data
Primary data is collected for the first time in keeping with the specific data requirement of
research study. They are essentially field data collected by using an appropriate survey
technique. When a field study covers the entire population, the resultant census-based data
may be termed as primary population; the sample-based data may be named as primary
sample data. There are several methods of collection primary data, particularly in surveys
and descriptive researches.
a) Preparing of Questionnaire:-
The quality and quantity of information collected through a questionnaire depends to large
extend on how best the questionnaires is prepared and designed. Well thought-out and
objectively stated questions are more effective in fetching quick response. All these come
from experience in conducting research. Questionnaires include both CLOSED as well as
OPEN ENDED questions



54 | P a g e

b) Observation:-
This method implies the collection of information by way of own observation without
interviewing respondents. The observation method is the most commonly used method
especially in studies relating to behavioral sciences. In a way we all observe things around
us, but this sort of observation is not scientific observation. Observation become a scientific
tool and the method of data collection for the research.
C) Interaction With consumers:
Personal interviewing is the most frequent used technique having its own merits and
demerits. One of the chief merits is that it facilities better response. The quality of answers
is likely to be more reliable and objective. For, it offers the quality of answers is likely to be
more reliable and objective. For, it offers the interviewer an opportunity to make
clarification and do necessary explanation to the respondents wherever needed. A small set
of question was made for interacting to the consumers

(5.4.2)Secondary data
These data area complied at different levels by governments at the center and those of the
state, including government departments and other agencies entrusted with the data
completion as their specific task. At another level, there are a host of individual public and
private organization, companies, and firms which also keep generating huge data. This is
done primarily for purpose of monitoring internal functioning. Secondary data like, history
of TATA MOTORS, physical and political descriptions of Jamshedpur, etc. have been
collected from the following sources.
Magazines
Company websites
Reports
.
(5.5)Sampling plan
A sampling plan is a detailed outline of which measurements will be taken at what times, on
which material, in what manner, and by whom. Sampling plans should be designed in such a
way that the resulting data will contain a representative sample of the parameters of interest
and allow for all questions, as stated in the goals, to be answered.
55 | P a g e

(5.5.1) Convenience Sampling:-
Convenience sampling, as name implies is based on the convenience of the researcher who
is to select a sample. Convenience sampling is one in which the researcher select the most
accessible population members. Respondents in the sample are included in it merely on
account of their being available on the spot where the survey is in progress. In this
researcher may stand at a certain prominent point and interview all those or selected people
who pass through that area.
These types of samples are used primarily for reasons of convenience.
It is often used for new product formulations or to provide
Gross-sensory evaluations by using employees, students etc.

(5.6)Method of research
(5.6.1)Descriptive Research method:-
Descriptive research, also known as statistical research, describes data and characteristics
about the population or phenomenon being studied. However, it does not answer questions
about eg: how/when/why the characteristics occurred, which is done under analytic research.

(5.7)Sample design

The way of selecting a sample is known as sample design. It is definite plan for obtaining
sample from given population. It refers to the procedure or technique adopted in selecting
items for the sample. Type of design is Non Probability.

(5.8)Sampling frame - Jamshedpur, Adityapur, Chandil, Chaka, Jadugoda, Musabani,
Saraikela, Kharsawan, Sini

(5.9)Tool used for survey - The observations and feedback were recorded using
structured questionnaires.

(5.10)Sample Size - Total sample size was 97. It was divided into two segments, 10
respondents from Tata ace zip and 87 respondents from 3 wheeler cargo

56 | P a g e

(5.11)Target group - The existing Tata ace zip and 3 wheeler cargo driver

(5.12)Sampling method - Non probability convenience sampling

(5.13)Analysis of data -
The analysis of data requires number of closely related operations such as tabulation and
drawing statistical inferences.
The raw data is then classified into some purposeful and usable categories.
The raw data was carefully analysed and the response were recorded in the form of a spread
sheet.
The analysis was done with the help of different mathematical tools using excel package.
The final data was represented in a tabular format and the analysed output was presented in
the form of different graphs.
After every graph the key findings for the respective question are given


















57 | P a g e



Chapter 6
Data Analysis and Interpretation
58 | P a g e

QUESTIONNARE

1) Ownership

Table no. (6.1):- Ownership

SR. no.
Parameter
No. of
respondent
percentage

1

owner
6 7%

2

Driver
42 48%

3
Owner cum
driver
39 45%


Figure no. (6.1):- Ownership















Interpretation: As per the survey conducted, the above graph shows that 7% of the
respondent were owners, 48% were driver and 45% were owning their own vehicle and
running on their own. Which also states that feedback comes from 93% of the total, who
actually drives.




7%
48%
45%
0
10
20
30
40
50
60
Owner Driver Owner cum driver
59 | P a g e

2) Vehicle owned

Table no. (6.2):- vehicle owned

SR. no.
Parameter
No. of
respondent
percentage

1
BAJAJ 13 15%

2
MAHINDRA 12 14%

3
PIAGGIO 62 71%


Figure no. (6.2):- vehicle owned
















Interpretation: The above graph shows that as per the survey done in different areas,
Piaggio users were 71%, Bajaj 15% and Mahindra 14%. This shows that Piaggio is leading
the market.






15%
14%
71%
0
10
20
30
40
50
60
70
80
BAJAJ MAHINDRA PIAGGIO
60 | P a g e

3) Use of Vehicle


Table no. (6.3):- use of vehicle

SR. no.
Parameter
No. of
respondent
percentage

1
Market Load
Operator
65 75%

2

Captive
22 25%


Figure no. (6.3) :- use of vehicle
















Interpretation: According to the survey conducted, we found that 75% were market load
operator and 25% were of captive segment. Which means while entering the commercial
segment TATA ACE ZIP would have to focus more on Market load operator, which has a
major demand.






Market
Load
Operator
75%
Captive
25%
61 | P a g e

4) What are the attributes important for you, when making decision of buying a
SCV?

Table no. (6.4):- Important attributes

SR.
no.
Parameter
No. of
respondent
percentage
1 capacity 82 94%
2 brand 53 61%
3 design 40 46%
4 safety 56 64%
5 Low maintenance 81 93%
6 price 76 87%
7 engine 69 79%
8 Easy finance 33 38%
9 Pick up 75 86%
10 Referred by someone 31 36%


Figure no. (6.4) :- Important attributes



Interpretation: As per the graph, the most important attributes seen while buying a SCV is
capacity of the vehicle, low maintenance, price, pickup and engine of the vehicle. Other
attributes doesnt attract much to the buying decision of the SCV customers.


94%
61%
46%
64%
93%
87%
79%
38%
86%
36%
0
10
20
30
40
50
60
70
80
90
100
62 | P a g e

5) How long have you been using this vehicle?

Table no. (6.5):- Duration

SR. no.
Parameter
No. of
respondent
percentage

1
0-1
year
8 9%

2
1-2
years
15 17%

3
2-3
Years
13 15%
4
3-4
years
19 22%
5
4-5
Years
7 8%
6
5-6
Years
10 11%
7
6-7
Years
2 2%
8
7-8
Years
5 6%
9
8-9
Years
8 9%

Figure no. (6.5) :- Duration



Interpretation: As per the graph, most of the vehicles were 3-4 years old. From last few
years the sales is decline of 3 wheeler (cargo). This graph also states the long lasting
durability of the market, as 9% of the total vehicle in the market come to the bucket of 8-9
years.


9%
17%
15%
22%
8%
11%
2%
6%
9%
0
5
10
15
20
25
0-1 year 1-2
years
2-3
years
3-4
years
4-5
years
5-6
years
6-7
years
7-8
years
8-9
years
63 | P a g e

6) Trips per Day?

Table no. (6.6):- Trips

SR. no.
Parameter
No. of
respondent
percentage
1 1 1 1%
2 2 2 3%
3 3 24 28%
4 4 39 45%
5 5 17 20%
6 6 1 1%
7 7 0 0%
8 8 1 1%
9 9 0 0%
10 10 1 1%

Figure no. (6.6):- Trips



















Interpretation: The above graph shows that, according to the survey, most respondents take
4 trips per day. Making the most of the commercial vehicle, users believe in making
optimum utilization as 93% of people make 3-5 trips a day. Being 4 trips a day most
economic as 45% of the total users following the same.




1%
3%
28%
45%
20%
1%
0
1%
0
1%
0
5
10
15
20
25
30
35
40
45
50
1 2 3 4 5 6 7 8 9 10
64 | P a g e

7) Distance covered per day (kilometers)?

Table no. (6.7):- Distance covered

SR. no.
Parameter
No. of
respondent
percentage
1 10-20 2 2%
2 20-30 5 6%
3 30-40 8 9%
4 40-50 21 24%
5 50above 51 59%

Figure no. (6.7):- Distance covered



















Interpretation: the above graph shows that 59% people cover a distance of 50kms and
above. This being the most economical to the users and giving the maximum productivity
out of the SCV. People intend to cover more distance. Giving them the maximum monetary
benefit.





2%
6%
9%
24%
59%
0
10
20
30
40
50
60
70
10-20 20-30 30-40 40-50 50 above
65 | P a g e

8) Load per Trip (kilos)?


Table no. (6.8):- Loading

SR. no.
Parameter
No. of
respondent
percentage
1 0-300 0 0%
2 300-600 2 3%
3 600-900 16 27%
4 900-1200 34 58%
5 1200-1500 7 12%
6 1500above 0 0%


Figure no. (6.8):- Loading


















Interpretation: As per the survey, users seem to be making optimum utilization of their
vehicle by carrying a load of 900 1200 Kgs. As it was learnt that carriage has a direct
impact to the mileage of the vehicle. And being this the most productive having major
monetary benefit this is been preferred by most of the users as 58% of the total agrees to the
same. Point noted here was this is the legal violation of the commercial vehicle as only 600
kgs are allowed in SCV.

0
3%
27%
58%
12%
0
0
10
20
30
40
50
60
70
0-300 300-600 600-900 900-1200 1200-1500 1500 above
66 | P a g e

9) Earning per trip?

Table no. (6.9):-Earning

SR. no.
Parameter
No. of
respondent
percentage
1 0-200 23 26%
2 200-300 60 69%
3 300-400 4 5%
4 400-500 0 0%
5 500above 0 0%


Figure no. (6.9):-Earning














Interpretation: It was known after the survey that users tend to make average 200 300
INR a day per trip. As 69% users are falling in this range.

















26%
69%
5%
0 0
0
10
20
30
40
50
60
70
80
0-200 200-300 300-400 400-500 500+
67 | P a g e

10) Vehicles preferred while buying?


Table no. (6.10):- Vehicle preferred while buying

SR. no.
Parameter
No. of
respondent
percentage
1 Tata 10 11%
2 mahindra 13 15%
3 Piaggio 58 67%
4 bajaj 11 13%


Figure no. (6.10):- Vehicle preferred while buying


















Interpretation: As per the market survey done portrayed above in graph, it was known 67%
of total users preferred buying Piaggio being the majority in the market whereas others
remaining in the minority having almost the same shares in the market. It was also learnt
that Piaggio has a minimal maintenance cost compared to others.







11%
15%
67%
13%
0
10
20
30
40
50
60
70
Tata Mahindra Piaggio Bajaj
68 | P a g e

11) Where do you get your vehicle serviced?


Table no. (6.11):-where you get vehicle serviced

SR. no.
Parameter
No. of
respondent
percentage

1
Service
centre
29 33%

2
Local
mechanic
58 67%


Figure no. (6.11):-where you get vehicle serviced


















Interpretation: It was known per survey that users preferred having serviced their vehicle
with the local mechanic. Almost 67% of users were preferring the same after completion of
their free service structure. This carries various following factors to it.
Less Time Consuming
Cheap
Mobility
Relationship





Service
center
33%
Local
mechanic
67%
69 | P a g e

12) Charges bared per service?


Table no. (6.12):- Service expenses

SR. no.
Parameter
No. of
respondent
percentage

1
Free 9 10%
2 1000-2000 60 69%
3 2000-3000 18 21%
4 3000-4000 0 0%
5 4000above 0 0%


Figure no. (6.12):- Service expenses

















Interpretation: As per survey 69 % of users are incurring cost of 1000 2000 INR for
servicing their vehicles. One of the major factor noted for high cost of service was, users
carrying more load and the roads not being proper.









10%
69%
21%
0 0
0
10
20
30
40
50
60
70
80
free 1000-2000 2000-3000 3000-4000 4000+
70 | P a g e

13) Mileage of the vehicle?


Table no. (6.13):-Mileage

SR. no.
Parameter
No. of
respondent
percentage
1 0-1 0 0%
2 10-20 13 15%
3 20-25 55 64%
4 25-30 18 21%


Figure no. (6.13):-Mileage



















Interpretation: Being Mileage one of the important factor, it was known that vehicles
have a 20-25 Kms. 64% of the total agreeing to same. The carriage of load had a direct
impact on the mileage of the vehicle.









0
15%
64%
21%
0
10
20
30
40
50
60
70
0-10 10-20 20-25 25-30
71 | P a g e

14) Are you satisfied with this vehicle? (Rate between 1-5, 5 being the best)


Table no. (6.14):-Rating for the vehicle

SR no.
Parameter Response

1
Loading Capacity 4.12

2
Mileage 4.01

3
Suspension 3.56

4
Engine 4.29

5
Comfort 3.24

6
Safety 3.24

7
Pickup 4.18

8
Price 4.14


Figure no. (6.14):- Rating for the vehicle

















Interpretation: Per Survey, Users are majorly satisfied with the Engine, Price, Loading
Capacity and Mileage. It was learnt Users were more delighted to the mentioned factors,
while showing a satisfactory gesture to the other factors also.

4.12
4.01
3.56
4.29
3.24
3.24
4.18
4.14
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00
Loading Capacity
Mileage
Suspension
Engine
Comfort
Saftey
Pickup
Price
72 | P a g e

15) Do you know about Tata Ace zip?


Table no. (6.15):- Awareness of Tata ace zip

SR. no.
Parameter
No. of
respondent
Percentage

1
Yes 40 46%

2

no
47 54%


Figure no. (6.15):- Awareness of Tata ace zip


















Interpretation: It was known per survey that more than half of the people were lacking
awareness about TATA ACE ZIP. Also its capacity to carry load has also been the major
constraint to the known users to which they termed as unpopular. Which itself indicates
lack of promotion of the brand.










Yes
46%
No
54%
73 | P a g e

16) Want to buy TATA ACE Zip


Figure no. (6.16):- Want to buy














Figure no. (6.16.1) :- Want to buy














63%
37%
know and want to
buy
know but dont
want to buy
19%
81%
dont know but
want to buy
dont know and
dont want to buy
74 | P a g e

FEEDBACK FROM TATA ACE ZIP CUSTOMER


1) Ownership


Table no. (6.17):- Ownership

SR. no.
Parameter
No. of
respondent
Percentage

1
Owner 1 10%

2
Driver 5 50%

3
Owner
cum driver
5 40%


Figure no. (6.17):- Ownership

















Interpretation: As per the survey with TATA ACE ZIP vehicle users, majority were self-
drivers comprising 90% of the total. We could understand by this the major feedback would
be coming from the actual users in the market.







10%
50%
40%
0
10
20
30
40
50
60
1 2 3
75 | P a g e



2) Purpose for purchasing TATA ACE Zip?


Table no. (6.18):- Purpose for purchasing

SR. no.

parameter
No. of
respondent
Percentage
1 Design 8 80%
2 Pick up 9 90%
3 Speed 8 80%
4 Comfort 7 70%
5 Price 5 50%
6 Durability 7 70%
7 Body 1 10%
8 Long distance 1 10%
9 Low maintenance 9 90%
10 Mileage 1 10%


Figure no. (6.18):- Purpose for purchasing


Interpretation: The above graphical data representation shows major factors affecting the
users make buy this product. Majorly it was known Pick-up, Engine and Low Maintenance
of the product matters.




80%
90%
80%
70%
50%
70%
10% 10%
90% 90%
10%
0
10
20
30
40
50
60
70
80
90
100
76 | P a g e

3) Prior vehicle owned?


Table no. (6.19):- Prior vehicle owned

SR. no.

Parameter
No. of
respondent
percentage

1

PIAGGIO
4 40%

2

BAJAJ
2 20%

3
MAHINDRA 1 10%
4 TATA 1 10%
5 NO 2 20%



Figure no. (6.19):- Prior vehicle owned


















Interpretation: Users was majorly using vehicle of Piaggio prior to buying Tata Ace Zip,
known during the survey. It was also understood that major attraction towards TATA Ace
Zip was its engine, comfort and low maintenance to drive.




40%
20%
10% 10%
20%
0
5
10
15
20
25
30
35
40
45
piaggio bajaj mahindra tata no
77 | P a g e

4) Vehicle Financed


Table no. (6.20):- Vehicle financed

SR no.
Parameter No. of respondent Percentage

1
yes 10 100%

2
no 0 0%


Figure no. (6.20):- Vehicle financed


















Interpretation: Per the survey it was identified, that all the users financed their vehicle
while purchasing the same. It was learnt the major reason for financing was, majority of the
users were from a low financial background and trying to generate self-employment.
Financing was the most convenient option to them.








100%
yes
no
78 | P a g e

5) How long you have been using our vehicle?


Table no. (6.21):- Duration of the vehicle

SR no.
Parameter
No. of
respondent
Percentage

1
0-6
Months
6 60%

2
6-12
months
4 40%

3
12-18
Months
0 0%

4
06-12
months
0
0


Figure no. (6.21):- Duration of the vehicle


















Interpretation: Since the product is new to the market, most of the users lies in the bucket
of 0-06 months old covering up to 60% of the total. But the figures shows the demand for
this product has started to increase, which is well represented in the graph through upward
force of the bar.




60%
40%
0 0
0
10
20
30
40
50
60
70
0-6 months 06-12 12-18 18-24
79 | P a g e

6) Travelling Route

a) Within city b) Inter-city


Table no. (6.22):-Travelling route

SR no.
parameter
No. of
respondent
percentage

1
City 5 50%

2
Inter-city 5 50%


Figure no. (6.22):-Travelling route




















Interpretation: Surprisingly half of the total surveyed users are making trips within city and
the other half making inter-city. It was also noted there were not much difference in riding
within city and inter-city, as their target for the running of distance of specific distance were
covered up.





50% 50%
city
inter-city
80 | P a g e

7) Distance covered per day?


Table no. (6.23):- Distance covered by Tata ace zip

SR
no.
Parameter No. of respondent Percentage

1
10-20 0 0%

2
20-30 0 0%

3
30-40 0 0%

4
40-50 1
10%

5
50above 9
90%


Figure no. (6.23) :- Distance covered by Tata ace zip

















Interpretation: Per the survey, users seem to be making optimum utilization of their
vehicle by covering more than 50 kms a day as 90% falling in this bucket. This had the
major monetary benefit as well as giving maximum comfort for long distance users.





0 0 0 10%
90%
0
10
20
30
40
50
60
70
80
90
100
10-20 20-30 30-40 40-50 50 above
81 | P a g e


8) Mileage of the vehicle?


Table no. (6.24):- Mileage of Tata ace zip

SR. no.

parameter
No. of
respondent
percentage

1
0-10 0 0%

2
10-20 2 20%

3
20-25 8 80%
4 25-30 0 0%


Figure no. (6.24):- Mileage of Tata ace zip





















Interpretation: Being Mileage one of the important factor, it was known that vehicles
have a 20-25 Kms. 80% of the total agreeing to same. Being four wheeler, it was competing
with other tree wheeler SCV giving almost same mileage.
0
20%
80%
0
0
10
20
30
40
50
60
70
80
90
0-10 10-20 20-25 25-30
82 | P a g e


9) Loading per Trip?


Table no. (6.25):- Loading per trip

SR. no.

parameter
No. of respondent percentage
1 Below 600 0 0%
2 600-800 4 40%
3 800-1000 4 40%
4 1000-1200 1 10%
5 1200-1400 1 10%
6 1400above 0 0%


Figure no. (6.25):-Loading per trip



Interpretation: It was understood after the survey stated above in the graph most of the
users are using the capacity to 600-800 and 800-1000 Kgs. It was also learnt being four
wheeler also it has a loading hindrance with comparison to three wheeler SCV. This had
remained a major drawback for the product in this market segment area.
0
40% 40%
10% 10%
0
0
5
10
15
20
25
30
35
40
45
below 600 600-800 800-1000 1000-1200 1200-1400 1400above
83 | P a g e


10) Earning per trip?


Table no. (6.26):- Earning

SR. no.

Parameter
No. of
respondent
Percentage

1
0-100 0 0%

2
100-200 2 20%

3
200-300 8 80%
4 300-400 0 0%
5 400above 0 0%


Figure no. (6.26):- Earning




















Interpretation: It was known after the survey that users tend to make average 200 300
INR a day per trip. As 80% users were falling in this range. While conducting survey it was
understood this was the most optimum earning capacity.


0
20%
80%
0 0
0
10
20
30
40
50
60
70
80
90
0-100 100-200 200-300 300-400 400+
84 | P a g e


11) Rate the vehicle on the following parameters?


Table no. (6.27):- Rating of the Tata ace zip
SR no. Parameter
Response
1 price
4.3
2
mileage
3.8
3 brand
3.9
4 cost
3
5 safety
4.8
6 comfort
4.8
7 payload
3.1
8 suspension
2.4
9 engine
3.1



Figure no. (6.27):- Rating of the Tata ace zip


Interpretation: It was identified after the survey that users prefer this vehicle majorly for
Safety, Comfort and price. While others factors also plays an important role but above being
the most preferred while rating the product.

0
1
2
3
4
5
6
price mileage brand cost safety comfort payload suspension engine
85 | P a g e

12) What are the issues you came across while using the vehicle?


Table no. (6.28):- Issues came across while using Tata ace zip
SR. no. Parameter No. of respondent percentage

1
Maintenance 0 0%

2
Suspension 9 90%

3
Availability of
spare parts
0 0%
4 Engine 4 40%
5 tires 7 70%
6 others 5 50%


Figure no. (6.28):- Issues came across while using Tata ace zip




Interpretation: After the survey on the problems faced by the users it was understood, this
vehicle has a suspension and tires issue. The two issues stated has been the major issues
among the users. It seems they have to work broadly in these areas, as this could have a
direct impact over sales.


0
90%
0
40%
70%
50%
0
10
20
30
40
50
60
70
80
90
100
maintenance suspension availability of
spare parts
engine tires others
86 | P a g e

13) Would you like to recommend this vehicle to others? (Yes/no)


Table no. (6.29):- Recommend to others

SR no.
Parameter
No. of
respondent
percentage

1
Yes 5 50%

2
No 5 50%


Figure no. (6.29):- Recommend to others






















Interpretation: As per the survey half of the user were referring for Tata Ace Zip whereas
half of the users were not referring for Tata Ace Zip. Considering the other maintenance
factors like suspension and tires, the other half didnt showed much confidence on the
product.






50% 50%
yes
no
87 | P a g e

OPERATING EXPENSES OF TATA ACE ZIP AND PIAGGIO
Dhananjay Nayak 9931181964 Parkash Kumar 9905750700

Ace Zip

Piaggo
Short route Short route
Legal Loading Capacity 600Kg Legal Loading Capacity 565kg
Actual Load being carried 800Kg Actual Load being carried 1000Kg
Avg Speed (km/hr) 25 Avg Speed (km/hr) 25
One side Distance 25 One side Distance 15
No of return trips per day 3 No of return trips per day 3
Total Distance per day 75 Total Distance per day 45
Fare one side/person (Rs) 300 Fare one side/person (Rs) 250

Total Earnings per day 900 Total Earnings per day 750


On Road Price 239378 On Road Price 184200
Registration 4500 Registration 3270
Insurance 18200 Insurance 6100
Ex-Showroom Price 216678 Ex-Showroom Price 174830
Funding = 90% 195010.2 Funding = 90% 157347
Rate of Interest (Flat) 8.50% Rate of Interest (Flat) 11.50%
Tenure of Loan 3 Tenure of Loan 3
EMI 6798 EMI 5879
Fixed Cost per day 227 Fixed Cost per day 196

Fuel Mileage 25 Fuel Mileage 30
Fuel Price 52.3 Fuel Price 52.3
Fuel Cost/ km 2.09 Fuel Cost/ km 1.74
Tyre Life 36000 Tyre Life 28000
Cost of one Tyre 2500 Cost of one Tyre 2100
No. of Tyres 4 No. of Tyres 4
Tyre Cost per km 0.28 Tyre Cost per km 0.30
Maintenance/ km 0.10 Maintenance/ km 0.10
Variable cost per day 185 Variable cost per day 96
Total Cost per day 412 Total Cost per day 292
Profit per day 488 Profit per day 458

Profit per month 12204 Profit per month 11440

Yearly profit as % of value 75% Yearly profit as % of value 87%

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Chapter 7
Observation and Findings
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Findings:

TATA ACE ZIP would have to focus more on Market load operator, which has a
major demand.
The most important attributes seen while buying a SCV is capacity of the vehicle,
low maintenance, price, pickup and engine of the vehicle
Making the most of the commercial vehicle, users believe in making optimum
utilization as 93% of people make 3-5 trips a day
Vehicle by carrying a load of 900 1200 Kgs Point noted here was this is the legal
violation of the commercial vehicle as only 600 kgs are allowed in SCV
Piaggio being the majority in the market whereas others remaining in the minority
having almost the same shares in the market.
Survey 69 % of users of three wheeler are incurring cost of 1000 2000 INR for
servicing their vehicles. One of the major factor noted for high cost of service was,
users carrying more load and the roads not being proper.
More than half of the people were lacking awareness about TATA ACE ZIP
Major attraction towards TATA Ace Zip was its engine, comfort and low
maintenance to drive.
It was learnt the major reason for financing was, majority of the users were from a
low financial background and trying to generate self-employment. Financing was the
most convenient option to them
Tata ace zip being a four wheeler, it was competing with other tree wheeler SCV
giving almost same mileage
Tata ace zip being a four wheeler, it has a loading hindrance with comparison to
three wheeler SCV
Tata ace zip has a suspension and tires issue. The two issues stated has been the
major issues and could have a direct impact over sales.





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Chapter 8
Conclusion and Limitations
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Conclusion


Tata ACE Zip competition lies with 3 wheeler SCV (Small Commercial Vehicle),
competing with Bajaj, Piaggio and Mahindra. It was learnt Piaggio is leading the SCV
market of 3 wheeler. Three Wheeler vehicle has a passing to carry 550 kg, though illicitly
they carry 1000 1200 kg. While Tata Ace Zip allows to carry 600, but confines the
carriage to 1000 kg because of suspension. Which also makes it ostracized among other
SCVs. Main intention of TATA ACE Zip is to provide comfort and safety in long route,
which lacks in other 3 wheeler vehicles. Though this feature is of not much attraction,
especially among rural users, as they are more inclined towards carriage of vehicle which is
confining to the popularity of Tata Ace Zip. While mileage being the important attributes, it
has been reasonably good.

The Awareness of Tata Ace Zip has been relatively low, among the rural market. Word of
mouth Equity, is also not good in the market, especially the current users are also not
satisfied and they do not wish to refer to other buyers. It has been identified the product
needs more branding, cognizance in the rural areas. Proper promotion of the product and
advertising its dominant advantages which could influence the market, is highly desired.
















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Limitations of the project

This research was limited to a particular area i.e. east singbhum and west singhbhum
There was time constraint as this research was to be completed within a specified period of
time.
During personal interview some of the customer was not available so the visit was done 2-3
times and it takes more time to complete this project.
In case of telephonic conversation most of the customer cannot contacted because of
changed phone number, network problem or some of the customer mobile is switch off etc.
















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Chapter 9
Recommendation
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Recommendation

1. for awareness regarding zip:
Perform the road shows like- Trip with Zip. By this programme TATA motors should get
to the targeted customers.
A set of improvements that needed that should be targeted four key areas :
Customer segmentation and engagement needed.
Dealer network optimization.
Sales pipeline management.
Sales process enhancement.
2. as the customers are motivated on the basis of operating and revenue cost. Aware them
about the Low operating cost and high revenue.
3. Long lasting vehicle (generally person mind-set that have a life of 5 to7 years).
4. Positioned a zip as a opportunity for self-employment
5. Advertised zip as a Zabardast Indian Pehchan (ZIP)
6. As the zip means nothing So you can relate it as a nothing is impossible
7. As the Ace zip is newly launched vehicle it should offer schemes like more servicing or
some extra benefits (like discount offer). So that the people will get more attracted towards
the vehicle.
8. Positioned it as a cost per transportation is less it means you have as many trips as you
can but the maintenance cost and operating cost will be low against the three wheeler. So
that More you trip lesser you pay
9. Differentiate with Ace in a category i.e. Ace and Zip are made for two different segments.
10. Service issues should be cleared.
11. As the Tata Ace has a strong base and hold in the market. So the base should be utilized
first for the sale of Ace Zip.







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Chapter 10
Annexure
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Annexure
Questionnaire
Owner Driver Owner cum Driver
Vehicle Name: ______________________________________
Use of the vehicle: ___________________________________
Q1) what are the attributes important for you, when making decision of buying a SCV?
a) Capacity f) Price
b) Brand g) Engine
c) Design h) Easy Finance
d) Safety I) Pickup
e) Low Maintenance j) Referred by Someone
Q2) how long have you been using this vehicle?
Year(s):_________ Month(s):__________ Date of purchase:
__________________
Q3) How many trip per day?
Q4) Loading capacity? __________________
Q5) Distance covered per day (In Km)?
a) 10-20 b) 20-30 c) 30-40 d) 40-50 e) 50 above
Q6) Earning per trip?
a) Below 200 b) 200-300 c) 300-400 d) 400-500
e) Above 500

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Q7) which all vehicles did you preferred while buying this?
a) Bajaj
b) Mahindra
c) Piaggio
d) Others (Specify_____________________________)
Q8) where do you get your vehicle serviced?
a) Service center b) Local mechanic
Q9) Charges bared per service?
a) 1000-2000 b) 2000-3000 c) 3000-4000 d) above 4000
Q10) Mileage of the vehicle?
a) Less than 10 b) 10-20 c) 20-25 d) 25 30
Q11) Are you satisfied with this vehicle? (Rate between 1-5, 5 being the best)
a) Loading capacity e) Comfort
b) Mileage f) Safety
c) Suspension g) Pickup
d) Engine h) Price
Q12) Do you know about TATA ACE Zip? (Yes/No)
Q13) Do you know about the features of TATA ACE Zip which make it best in the
category?
a) Engine (water cooled, more pickup, more trips)
b) Bigger loading area (Higher payload capacity)
c) All weather protection
d) Steel body
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e) Small turning radius
f) Comfort (steering wheel, sliding seats, wide windscreen, and big cabin)
g) Safety (seatbelt, locker, front collision protection, four bolt wheel)
H) 1 year or 36000 km warranty
Q14) if we provide you 4W micro-truck at the price auto, will you prefer it?
a) Yes b) no
Comments:_________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
____________________________________________

Name:-__________________________________________
Address:-____________________________________________________________
____________________________________________________________
Phone Number:-______________

Signature of Respondent





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TATA ACE Zip feedback

Owner Driver Owner cum Driver
Name:-__________________________________________
Address:-____________________________________________________________
____________________________________________________________
Phone Number:-______________
Q1) Purpose for purchasing TATA ACE Zip
a) Design
b) Pick up
c) Speed
d) Comfort
e) Reasonable price
f) Durability
g) Strong body
H) Suitable for long distance
I) Low maintenance cost
j) Engine
k) Low fuel consumption

Q2) Prior vehicle ownership: ________________________________
Q3) is your vehicle financed
a) Yes b) no
Q4) How long you have been using our vehicle?
Year(s): _______ Month(s): _______ Date of purchase: __________________
Q5) Purpose of use: ___________________________________________
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Q6) Travelling route?
a) Within city b) Inter-city
Q7) Distance covered per day (In Km)?
a) 10-20 b) 20-30 c) 30-40 d) 40-50 e) 50 above
Q8) No. of trips per day:
Q9) Loading capacity? ________________________
Q10) Mileage of the vehicle?
a) Below 10 b) 10-20 c) 20-25 d) 25-30
Q11) Earning per trip (Rs)?
a) Below 200 b) 200-300 c) 300-400 d) above 500

Rate the vehicle on the following parameters?



poor Average good Very good excellent
Price


Mileage


Brand


Cost
Safety


Comfort


Payload
Suspension
Engine
power





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Q13) what are the issues you came across while using the vehicle?
a) Maintenance b) Suspension
c) Availability of spare parts d) Engine
e) Tires f) Others: _________________________

Q14) if it was not ACE which would be your next alternative option:
____________________________

Q15) would you like to recommend this vehicle to others? (Yes/no)

Suggestion:
________________________________________________________________________

________________________________________________________________________


Signature of Respondent










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Chapter 10
Bibliography
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Bibliography
Websites
www.tatamotors.com
www.tata.com
www.frost.com
www.business-standard.com
En.wikipedia.org
www.ukessays.com

Online Report
Indian Three-Wheeler Industry: Overview by ICRA Research

Magazine
4P Business & Marketing
Business World