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“A Detailed Study On Tata Motor’s Rural Market Penetration Strategy Project

Neev And Competitive Analysis Of Tata Xenon Yodha And Mahindra Bolero

Pickup.”

Report submitted in partial fulfilment of the award of the PGDM

By

Nishtha Saraiwala

PG2018-H055

Regd. Office and Harihar Location: Kirloskar Institute of Advanced


Management Studies, Harihar, Karnataka - 577601.
Phone: 08192 241269.
Pune Location: Gut No. 356 & 357, Near Tata Foundry, Village Dhamane,
Taluka Maval, Pune, Maharashtra - 410506.
Phone: 020 6529 6181.
Year of Submission 2019
Declaration

This is to certify that this project titled “A Detailed Study On Tata Motor’s Rural

Market Penetration Strategy Project Neev And Competitive Analysis Of Tata Xenon

Yodha And Mahindra Bolero Pickup.” submitted by Nishtha Saraiwala (PG2017-

H055) in partial fulfilment of the requirements of the PGDM, Kirloskar Institute of

Advanced Management Studies, is based on the results of the project work carried out by

me and written by me under the guidance and supervision of Dr. Nagaraj BV The project

has been subjected to plagiarism check by Software. This report or any part thereof has

not been submitted for any purpose to any other University or Institute.

Place: Harihar

Date: 24.06.019 Nishtha Saraiwala


Certificate

This is to certify that this project titled a study on procurement management submitted by

Nishtha Saraiwala (PG2017-H055), in partial fulfillment of the requirements of the

PGDM, Kirloskar Institute of Advanced Management Studies is based on the results of

the project work carried out under my guidance and supervision. The report has been

subjected to plagiarism check by software. This project or any part thereof has not been

submitted for any purpose to any other University or Institute.

Place: Harihar Dr. Nagraj BV

Date: 24.06.2019
ACKNOWLEDGEMENT

I would like to express my profound gratitude and appreciation to all those who have been
instrumental in the preparation of my project report. The completion of this undertaking
could not have been possible without the participation and assistance of so many people
whose names may not all be enumerated. To start with, I would like to thank Tata Motors
Limited for providing me the chance to undertake this internship study and allowing me
to explore the area of Market Research and Branding which was entirely new to me and
which all surely proven to be very beneficial to me in my future assignments, my studies
and my career ahead.
I wish to place on record, my deep sense of gratitude and sincere appreciation to my
company guide, MR. MOHAMMAD RAGHIB -Territorial Sales manager at Tata
Motors Ltd., who played a pivotal role in the preparations of my project. I would also like
to thank him for his continuous support, advice and encouragement, without which the
report could never have been in its present form. His unflinching help and encouragement
was a constant source of inspiration to me.
I would also like to mention the unconditional help put forth by the entire Marketing and
Sales team at Tata Motors Limited, Jamshedpur.
I am thankful to my faculty guide DR. NAGRAJ BV. for his valuable guidance,
comments, feedback and encouragement throughout the internship. They have served as
a beacon of light. His patience and faith in my abilities always bolstered my confidence.
It was his guidance and support which resulted in the successful completion of internship
within the specified time.

NISHTHA SARAIWALA
ROLL NO: PG2018 H055
EXECUTIVE SUMMARY

I, Nishtha Saraiwala, a student of Kirloskar Institute Of Advanced Management Studies,


interned with Tata Motors, Jamshedpur division, in a Rural marketing project .The project
I worked upon is titled -“ A Detailed Study On Tata Motor’s Rural Market Penetration
Strategy Project Neev And Competitive Analysis Of Tata Xenon Yodha And Mahindra
Bolero Pickup”. The objectives behind the study was to understand the Tata Motors
marketing strategies to promote their product and services in rural areas

Tata Motors is part of the USD 100 billion Tata group founded by Jamsetji Tata in 1868.
Tata Motors is India’s largest automobile company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group.

The rural markets in India have grown size, range and sophistication in recent times.
Under the changing Socio-economic scenario, the rural markets have great potentialities
in India and offer bright prospects and attraction to the companies. The Indian rural market
is observed as a high potential market across the world. More than three-fourths of
country’s consumers reside in rural areas and more than half of the national income is
generated by them. Due to the global economic downturn, the companies are few facing
slower urban sales, prompting them to make a rush towards rural India. The downturn has
not impacted rural markets in the same way as urban markets. In last few years, sales of
SCV (Small Commercial Vehicle) took a pitfall due to which Neev Overdrive comes to
the picture. The rural market is booming beyond everyone's expectation. An estimated
induction of Rs 140 billion in the rural sector through the government's rural development
schemes in the Seventh Plan and about Rs 300 billion in the Eighth Plan is also believed
to have significantly contributed to the rapid growth in demand. Apart from the traditional
agricultural income, government spending and infrastructure projects have meant cash
flow in these markets. Thus, the relative rural prosperity is fuelling demand and, therefore,
drawing companies toward them. The villages, which were once inconsequential, are now
getting the attention of companies across different sectors.
Tata Motors has analysed data of FY 17-18 sales of SCV Cargo & SCV Passenger (Neev
and Non-Neev) for all NEEV States for all dealerships, and it is found that in more than
80% of the tehsils, productivity is 2 vehicles a month. This clearly shows that we have a
long way to go in our resolve to unfold tremendous Potential through NEEV which will
be REAL RURAL.
SECTION - A

1. INTRODUCTION

TATA GROUP:
Jamsetji Nusserwanji Tata was an Indian pioneer industrialist, who founded the Tata
Group, India's biggest conglomerate company. He was regarded as the legendary "Father
of Indian Industry".

Tata Group is an Indian multinational company headquartered in Mumbai, Maharashtra,


India. The Tata group is a global business group with Products and services spread over
150 countries. In all over countries it has 5,80,000 employees It also has its operations in
100 countries. The group Expanded significantly with the establishment of Tata
Chemicals, Tata Motors and Tata Steel, VOLTAS, Tata Tea, Tata Consultancy Services
and TITAN industries.
SUBSIDIARIES OF TATA
This section lists the Tata companies and details their business:

• Tata Chemicals
• Rallis India
• Tata Pigments Limited
• General Chemical Industrial Products
• Brunner Mond
• Advinus Therapeutics
• Magadi Soda Company

• Tata Salt
• I-shakti
• Casa Décor
• Tata Swach
• Tata Global Beverages, is the world's second largest manufacturer of packaged tea
and tea products.
• Tata Starbucks, is a 50:50 joint venture company, owned by Starbucks Corporation
and Tata Global Beverages
• Eight O'Clock Coffee
• Tetley
• Tata Coffee
• Himalayan, mineral water brand
• Lakme
• Tata Ceramics
• Infiniti Retail (Cromā)
• Tata Industries
• Titan Industries
• Trent (Westside)
• Landmark Bookstores
• Tata Sky
• Voltas, consumer electronics company
• Tata International Ltd.
• Tanishq
• Fastrack, Youth Fashion Brand
• Titan Eye+, Optical Stores from Titan Industries
• Tata Refractories
• Westside

• Tata Power is one of the largest private sector power companies.


• Tata Power Solar, started as a joint venture between Tata Power and BP Solar, now
a wholly owned company.
• Hooghly Met Coke and Power Company
• Jamshedpur Utilities and Services Company
• Tata Power Delhi Distribution Ltd (Formerly Known as North Delhi Power Ltd)
• Power links Transmission
• Tata Power Trading
• Tata Projects

• TAL Manufacturing Solutions


• Tata AutoComp Systems Limited (TACO)
• Hispano Carrocera
• Tata Motors, manufacturer of commercial vehicles (largest in India) and passenger
cars
• Jaguar Land Rover (Manager of Tata's British brands Jaguar cars and Land Rover)
• Tata Daewoo Commercial Vehicle
• Tata Projects
• Tata Technologies Limited
• Tata Marcopolo
• Tata Consulting Engineers Limited
• Tata Cummins
• Telco Construction Equipment
• TRF
• Voltas Global Engineering Centre
• Tata Advanced Materials
• Tata Advanced Systems
• Tata Motors European Technical Centre
• Tata Petrodyne
• Tata Precision Industries
• Telcon Construction Equipment

• Computational Research Laboratories


• INCAT
• Nelco
• Nelito Systems
• Tata Business Support Services
• Tata Consultancy Services Ltd. (TCS) is one of the world's largest IT Services
companies.
• Tata Elxsi
• Neotel
• Tata Interactive Systems
• Tata Teleservices
• Tata DoCoMo
• Tata Communications
• CMC Limited
• VSNL International Canada
• Tatanet, Managed connectivity and VSAT service provider

• Tata Sons
• TajAir
• Mjunction
• Vistara
• Air Asia India joint venture with Air Asia
• The Indian Hotels Company
• Taj Hotels
• Vivanta By Taj
• The Gateway Hotels & Resorts
• Ginger Hotels
• Roots Corporation
• Tata Housing Development Company Ltd. (THDC)
• Tata Limited
• TATA AIG General Insurance
• TATA AIA Life Insurance
• e-Nxt Financials ltd.
• TKM Global, Logistics and Supply Chain
• Tata AG
• Tata Asset Management
• Tata Financial Services
• Tata Capital Financial Services Limited
• Tata International AG
• Tata Investment Corporation
• Tata Advanced Systems Limited
• Drive India Enterprise Solutions
• Tata Quality Management Services
• Tata Realty and Infrastructure Limited
• Tata Interactive Systems
• Tata Africa Holdings
• Tata AutoComp Systems
• Tata Industrial Services
• Tata NYK
• Tata Services
• Tata Strategic Management Group

• Tata Steel
• Tata Steel Europe
• Tata Steel KZN
• Tata Steel Processing and Distribution
• JAMIPOL
• NatSteel Holdings
• Tata BlueScope Steel
• Tata Metaliks
• Tata Sponge Iron
• Tayo Rolls
• The Tinplate Company of India
j• Tata Bearings
• TM International Logistics

• Tata Institute of Fundamental Research


• Tata Institute of Social Sciences
COMPANY PROFILE:
Tata Motors is India’s largest automobile company headquartered in Mumbai,
Maharashtra, India, and a subsidiary of the Tata Group. Tata Motors is part of the USD
100 billion Tata group, founded by Jamsetji Tata in 1868.Their products range from
passenger cars, trucks, vans, coaches, buses, construction equipment and military
vehicles. Tata Motors is the world's 17th-largest motor vehicle manufacturing company,
fourth-largest truck manufacturer, and second-largest bus manufacturer by volume.

The Company relies on six strategic planks i.e.


• High quality Product Portfolio,
• Lower Cost Ownership for Customers,
• Manufacturing and Sourcing,
• Sales and Service network,
• Customer loyalty,
• Leadership development
Tata Motors believe that accountability towards all stakeholders’ customers, dealers,
employees; investors and communities help them to achieve newer excellence. The
company strategic planks mentioned above help them to maintain its dominant position
in India. Tata as a brand has brought the best combination of technology, space, comfort,
fuel efficiency in its vehicle to provide customer an exciting value proposition in Indian
market. TML has also focused on increasing its global presence by entering into new
markets.

NATURE OF THE BUSINESS


Tata motors limited is an automobile company. The company is engaged in manufacture
of motor vehicles. The company is engaged mainly in the business of automobile products
consisting of all types of commercial and passenger vehicles, including financing of the
vehicles sold by the company. The company’s segments include automotive operations
and all other operations. The company’s automotive segment operations include all
activities relating to the development, design, manufacture, assembly and sale of vehicles,
including vehicle financing, as well as sale of related parts and accessories. In the
automotive segment, the company manufactures and sells passenger cars, utility vehicles,
light commercial vehicles, and medium and heavy commercial vehicles. The company’s
all other operational segment mainly includes information technology services, and
machine tools and factory automation services. The company operates in over 160
countries across the world.
ORGANISATIONAL STRUCTURE
The company has received another, level authoritative structure, assert industry sources.
They include that the new Overseeing Executive, Buts check, has started this change to
encourage speedier and successful basic leadership, and to have a prime client centre. In
the event that sources are to be trusted, the basic change, reported in an inward
roundabout to the workers, underscores after taking out layers of centre administration
so the specialty units are enabled and have clear responsibility said to characterize key
standards of end-to-end responsibility to the extent the traveller vehicle and business
vehicle business is concerned, the new, level authoritative structure is asserted to guide
deals and advertising capacities to answer to their separate business heads who thus will
answer to the MD. All item bunches have been dismembered into portions and stages
and will now need to indicate responsibility on parameters going from benefit and
misfortune, lifecycle administration and business case including methodology. The new
structure is booked to become an integral factor.
VISION

As a high-performance organisation, we are, by FY 2019:

 The preferred choice for customers in delivering excellence, efficiency and value
in design and engineering solutions.
 Achieving sustainable financial performance
 Delivering exciting innovations.

MISSION

We innovate mobility solutions with passion to enhance quality of life.

QUALITY POLICY

We will continue to strive for excellence in design, development manufacturing and sales
experience of exciting products and services combined with an unmatched ownership
experience.
To reach higher benchmarks on Quality, we will internalize global best practices and
sustainable technologies within the organization. Initiatives such as “first time right
capability,’ a quality management system’ will create meaningful impact in the
organizational while also serving as a common set of guidelines and improvement
yardstick.
Tata motors also has a commitment towards improving the Quality of life of its direct
stakeholders, both within and outside its plants and offices, through improved work
practices and social welfare schemes.
OWNERSHIP PATTERNS

The organization Possession Rundown gives a preview of institutional property and


movement for a specific stock. The institutional property outline information envelops
the possessions and change from latest 13F filings. The insider filer information checks
the quantity of month to month positions more than 3 months and year time ranges.
Synopsis information is figured every day, utilizing the most forward data accessible.

Institutional Holdings 12.16%

Total Number of Holders 271

Total Shares Held 70,197,834

Total Value of Holdings 1,919,208,782

Net Activity (3,939,634)

 Top 5 Holders of Institutional Holdings

1. CORONATION FUND 6,987,780


MANAGERS LTD.

2. CAMBIAR INVESTORS 6,652,466


LLC

3. FISHER ASSET 5,621,236


MANAGEMENT, LLC

4. JPMORGAN CHASE & 4,784,087


CO

5. FIL LTD 4,020,203


PRODUCT LINE OF TATA MOTORS
Commercial Vehicle Product line

Commercial Vehicle Business Unit is divided into 8 types of Vehicle segment. They are
Medium and Heavy Commercial Vehicles, Intermediate and light commercial vehicle,
Defence Segment Vehicles, Bus and Coaches, Small Commercial Vehicles & Pick-ups,
Trucks and Constructs.
Passenger Vehicle Product Line

Passenger Vehicles such as Tata Tigor, Tata Hexa, Tata Nexon, and Tata Tiago have been
manufactured last year only.
MANPOWER

As a period of its vision for change, Company Engines has enunciated a human capital
system that sets a five-year road delineate the organization's HR plan.
Workers are our capital and our activity is to build up that capital. The day and age
human capital connotes that it is presently not simply the HR capacity's business to deal
with this asset, anyway it is the administration's activity also. For an extremely extensive
individuals in numerous organizations have incorrectly trusted that human resource
administration is area of the HR capacity's plan. Be that as it may, in all actuality while
human capital approach is empowered and encouraged by utilizing the HR work, it is
truly claimed by administration and administration all through levels.
HR is no uncertainty the pragmatic master; anyway, the sending at long last lies in the
hands of line supervisors. The purported hole between line chiefs and HR should end.
One can't be a wonderful line chief except if one is a magnificent people supervisor.
That is the reason the move from a HR highlight procedure to a human capital
technique.
HR can influence business venture choices on regardless of whether the enterprise must
enter another topography, through informing if the best possible sort with respect to
mind is open in that market or inside the organization. This is notwithstanding
empowering all compliances to an assortment of adjacent work enactment. HR can also
help via preparing faculty to work effectively in another social and venture condition.
The current employee strength of Tata Motors is 81,090 (includes permanent,
temporary, trainee and contractual employee). The company over the past years has
associated with over 135 it is across 19 states, to develop skilled and highly competent
manpower that’s future ready.
COMPETITORS:

The top tata motors competitors are:

Ashok Leyland deals in buses, trucks, light vehicles, Defence vehicles etc. Its buses are
the most stylish designed vehicles with all the leading features and comfort. It’s a major
competitor of TML.

Eicher engines are known for its compact size, less vibration, oil change period, easy
service, and easily availability of spare parts. Eicher also is a major competitor of TML.

Maruti is one of the top competitors of Tata Motors. Their large market share and the
highest number of domestic sales is the major reason for it being the competitor of Tata
Motors.

Hyundai is also considered as a competitor of Tata Motors due to their rich experience
in auto mobile industry.

Volkswagen has an excellent brand recognition and their well-managed operations is


considered as threat by Tata Motors.

Toyota’s strong brand image, great technology and their design and popularity across
the globe makes Toyota one of the top competitors of Toyota.

Honda enjoys a great market share and product line which is why it is a competitor of
Tata Motors.
Ford’s new technologies target on increasing fuel efficiency, their great market share
and a huge portfolio of products are few reasons that it is considered as a Tata Motor
competitor.

Mahindra focuses on R&D so has great vehicles and has become a competitor of Tata
Motors.

SIZE OF THE COMPANY (IN TERMS OF REVENUE ETC)

Revenue of Tata Motors (in crores) 2,94,243

Total CAPEX (in crores) 42,672

EBITDA (in crores) 31,121

MARKET SHARE AND GROWTH RATE OF THE COMPANY

Tata Motors is recovering its lost share in commercial vehicles which is its mainstay of
the company’s domestic operations. The medium and heavy CV’s share has increased
from 49.4% to 51.0% from financial year 2018 to 2019 whereas the light CV’s share has
increased from 40.4% to 41.2%. Tata Motor is currently enjoying a growth rate of
24.13% at 2,37,217 units in calendar year 2018 recording a market share of 7% from
earlier 5.9% in 2017 in passenger vehicles.

ANNUAL TURNOVER OF THE COMPANY (IN RUPEES/ USD)

Net Sales Turnover is (in crores) 58831.41

GROSS AND NET PROFIT

Gross profit for the year 2018 was $15,578

Net profit for the year 2018 was $1.4 billion


INDUSTRY ANALYSIS

The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per
cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th
largest manufacturer of commercial vehicles in 2017.
The automotive industry is a pillar of Indian economy and a key driver of macroeconomic
growth and technological advancement. Currently, the automotive industry contributes
more than 7% to the total GDP and provides employment to about 32 million people,
directly and indirectly. Strong domestic demand coupled with supportive Government
policies have led to the Indian automotive industry climbing up the ranks to be one of the
global leaders.
The Two Wheelers segment dominates the market in terms of volume owing to a growing
middle class and a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations for the
near future. Automobile exports grew 15.54 per cent during April 2018-February 2019. It
is expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several
initiatives by the Government of India and the major automobile players in the Indian
market are expected to make India a leader in the two-wheeler and four wheeler market
in the world by 2020.

Timeline/ History

 The government decided the first Tariff Commission


in 1952.
 The commission submitted the report in 1953 which
proposed the car companies with licensed range to
produce a definite number of vehicles, with capacity
1947-1970 increases allowable in near future.
 New policies were made by the commission
regarding the assembly of import goods.
 In 1954, General Motors, Ford and Rootes Group
moved out of India after this implementation.
 Restrictions resulted in the downfall of the
automotive industry, demand exceeded supply of
cars, vehicles etc.
 Slow growth rate which obstructed the growth of
private sector.

 Possibilities in growth were seen in 1970s.


Collaboration license agreements ended but with
some options.
 Some developments were made in relation to the
commercial vehicle segments.
 The two-wheeler segment remained unaltered.
 As a result of Green Revolution, the industry focused
on farm tractors.
 Cars were meant for the rich and Jeeps were used by
1970-1983 Government
 Institutions and some rural areas.
 A competitive element i.e. price controls were raised
in 1970s.
 The automobile market was in control of Hindustan
and Premier in 1980s who sold old fashioned products
in the market.

 High power machines which were to be used in ICV,


as a result of which Engine Factory Avadi was formed
in Chennai in 1987.
 Delhi Auto Export was created to promote the auto
1984-1992
industry.
 It suggested various techniques to adopt new
technologies.

 Multinational companies were allowed to enter the


Post 1992 country.
0323liberalisation
 Joint ventures of foreign companies with Indian
companies were allowed in 1991.
 By 2000, 12 automotive companies were established
in India which also operated globally.

 The Central Government initiated standards “India


2000” for vehicle pollution.

2000-till date  Bharat Stage IV, the most rigid one was executed in
major cities in 2010.
 Government of India has announced about the new
emission norms called Bharat Stage VI which will
have an effect from 1st April 2020.
 Various Automobile Companies have already started
manufacturing vehicles as per the Govt. rule BS VI.
 Also various companies like Tata Motors, Maruti
Suzuki faced a huge loss because they weren’t
allowed to sell BS IV vehicles.

TRENDS IN DOMESTIC PRODUCTION

Trends in production of various types of vehicles are a better indicator of performance of


the automobile industry. For the FY18, according to data released by the Society of Indian
Automobile Manufacturers (SIAM), the industry produced a total 2,90,73,892 (29.07
million) vehicles, including passenger vehicles, commercial vehicles, three wheelers, two
wheelers and quadricycle in FY18, against 2,53,29,383 (over 25 million) in FY17,
registered a growth of 14.8%.
MARKET SEGMENT
The Two Wheelers segment with 81 per cent market share is the leader of the Indian
Automobile market owing to a growing middle class and a young population. Moreover,
the growing interest of the companies in exploring the rural markets further aided the
growth of the sector. This is followed by passenger vehicles having a share of 13%.
Commercial vehicles and three-wheelers have about 3% share each in the automobile
industry.
MARKET PLAYERS

Indian automobile industry is clearly dominated by 3 to 4 players in every vehicle


category. Given below is the market share of automobile companies in India. The market
share is mainly for top players in each segment based on vehicle sale for the period FY18.
Passenger Vehicles: Company wise Market Share:
Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra, Tata Motors and Honda
Cars India stands in top 5 In terms of market share followed by Toyota, Renault, Ford,
Nissan, General Motors, Volkswagen, Skoda, Fiat, etc.
Passenger Vehicles include passenger cars, utility vehicles and multipurpose vehicles.
Major Players in this segment are Maruti Suzuki, Hyundai, Mahindra, Tata Motors, and
Honda Cars etc. Maruti Suzuki is the market leader with the market share of 50% , then
in the second place comes Hyundai with 16%. Tata Motors stands in the fourth position
with the market share of 6%.
Commercial Vehicles (CVs): Company wise market share:
Tata Motors, Mahindra & Mahindra, Ashok Leyland, VECVs – Eicher and Force Motors
stands in top 5 in terms of market share based on sale of vehicle for the period FY18
followed by SML Isuzu, Maruti Suzuki India, VECVs – Volvo, Piaggio Vehicles and
Isuzu Motors India.
Commercial Vehicle comprises of Light, Medium and Heavy Vehicles. Tata Motors is
the market leader in this segment with 44 %, then in the second position comes the
Mahindra and Mahindra with 25%. Ashok Leyland stands in the third position with 19%.
Then comes the Eicher Motors with 7% of Market share.

THREE WHEELERS: COMPANY WISE MARKET SHARE:

Bajaj Auto, Piaggio Vehicles, M&M, Atul Auto and TVS Motor stands in top 5. Bajaj
Auto, three-wheeler market leader sold a total of 369,637 units, an increase of 8.7 percent,
which includes 346,846 passenger carriers (+7.36%) and 22,791 goods carriers (+7.27%).
The smart uptick helped the company further increase its market share from 49.45 percent
in FY2017 to 58.15 percent in FY2018.

Two wheelers: Company wise Market Share:


As per SIAM report, India has 11 motorcycle manufacturers and 7 scooter manufacturers.
Motorcycles contributed to 62.4 percent of the total sales, scooters increased their
contribution to 33.27 percent and mopeds share declined to 4.25 percent. Hero MotoCorp,
Honda Motorcycles and Scooters India (HMSI), TVS Motor, Bajaj and Royal Enfield
stands in top 5 followed by Suzuki Motorcycle and Yamaha Motor India etc.

Growth drivers
There are several key drivers that have affected the automobile industry in India. These
include:
 Government regulations: The automobile industry in India has received extensive
government support and this has encouraged a lot of foreign direct investment in
the industry. The government permits 100% foreign direct investment in this
industry and it is fully delicensed making it easy for investors to penetrate it and
set up shop in India. Additionally, there are also tax incentives and investors can
actually export the automobiles for free.
 Low car penetration & Rising family income: India has about 120 vehicles (all
segments including 19 cars per 1000) on every 1000 people right now, which is
expected to rise to almost 300 in next 10 years. Around 60% of the mobility
demand in India is served by public transportation modes like buses and metros
and non-motorized transport modes (walking and cycling). India's per capita
income grew at pace of 8.6 per to Rs. 1,12,835 during FY18 from Rs. 1,03,870 in
FY17. The growing domestic income is to make motor vehicles more affordable
for local consumers.
 Young population: Indian is one of the youngest country in the world with more
than 50% of population is below the age of 25 years and more than 65% is below
the age of 35%. A young population may lead to higher personal vehicle
ownership.
 Greater Availability of cheaper and easier finance: All nationalized and
scheduled banks offers loans for purchase of new vehicles at very low interest rates.
 In India nearly 70-75% of the new vehicle purchases are done by using bank loans.
This indicates that Indian auto industry is unique in the way vehicles are purchased
by consumers.
 Research and Development: There have been many research and development
initiatives, both private and governmental. These are aimed at improving the
automobile industry in India. There have been many research and development
initiatives, both private and governmental. These are aimed at improving the
automobile industry in India.

Growth Rate of Automobile Industry

Domestic automobile production increased at 7.08 per cent CAGR between FY13-18
with 29.07 million vehicles manufactured in the country in FY18. During April 2018-
January 2019, automobile production increased 9.84 per cent year-on-year to reach 26.26
million vehicle units. The Indian economy has grown at an average rate of around 9
percent over the past five years and is expected to continue this growth in the medium
term. This is predicted to drive an increase in the percentage of the Indian population able
to afford vehicles

Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
 The government aims to develop India as a global manufacturing centre and an
R&D hub.
 Under NATRiP, the Government of India is planning to set up R&D centres at a
total cost of US$ 388.5 million to enable the industry to be on par with global
standards
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in
the country for introduction of electric vehicles (EVs) in their public transport
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and
Electric Vehicles in India) scheme. The government will also set up incubation
centre for start-ups working in electric vehicles space.
 In February 2019, the Government of India approved the FAME-II scheme with a
fund requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Automobile industry analysis

The above diagram depicts the analysis of Automobile Industry in the country. It talks
about the advantages the country has in terms of growing demand of automobile vehicles
among consumers, policy support from the government, etc. The increase in the
Disposable income of the consumers results in the increased demand which further result
in strong growth of the country. The industry is slowly focusing and shifting towards
electric cars which also creates opportunities in the sector. Investment is also rising in this
sector because of the significant cost advantage that India has. The Government support
also matters for the industry. The Government aims to develop the country as a global
manufacturing centre.

MISSION
To be passionate in anticipating and providing the best vehicle and experience that excites
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

VALUES
 Inclusion
 Integrity
 Accountability
 Customer
 Innovation
 Concern for the environment
 Passion of excellence
 Agility
What is Neev?

“Neev” is the Sanskrit word for ‘foundation’. Project Neev is focused on


creating a foundation for growth in rural markets for Tata Motors. This Project
was initiated by Tata motors in the year 2010. The aim of this project was to
capture the growing rural market through the various Commercial Vehicles of
Tata motors. This project is a study about the rural market of Jharkhand and how
Tata Motor’s has performed the market penetration in this untapped market
through project NEEV. We all know that the urban market has almost saturated
and the rural market has a huge potential so Tata Motors has created a market for
their commercial vehicles in this rural Segment .Tata Motors has also created an
employment opportunity for the people in the rural area through a concept called
Tata Garmin Mitra (TGM) which is one of the major aspects of the Project NEEV.
Our project will involve research on the current status of Project NEEV. We also
have interaction with the TGM’S to find out the challenges faced by them and
then to come up with strategies as to how the efficiency of those TGM’S can be
enhanced.

We have a research work on the factors that our impacting the sale of Tata Xenon
Yodha over its competitor and marker leader Mahindra Bolero pickup. This
research work will help us understand the psychology of the rural people when it
comes to buying commercial vehicles.

STATEMENT OF THE PROBLEM:

A detailed study on Tata Motor’s rural market penetration strategy Project NEEV
and competitive analysis of Tata Xenon Yodha and Mahindra Bolero Pickup.
RESEARCH OBJECTIVE:

i. To study the rural market penetration strategies of Tata Motors to promote their
new and existing product and service in rural areas through Tata Gramin Mitras.
ii. To study network of “feet on street” and “rural outlet”, marketing TML
products at taluka level.
iii. To find ways to improve efficiency of existing Tata Gramin Mitras.
iv. To find out effective marketing strategy to increase sales of TML products.
v. Competitor analysis of Tata Xenon Yodha.

SCOPE OF THE STUDY:


NEEV initiative has been acknowledged across various national and international
forums and this shows the strength of TML’s rural program. Tata Motors by
September 2016 completed 1,00,000 Sales Volume milestone. Some of the
initiatives like Mahatma Gandhi National Rural Employment Guarantee Act-
2005, Pradhan Mantri Gram Sadak Yojana, Swarnjayanti Gram Swarozgar
Yojana taken by Government of India helped TML to get true incremental
volume. With less investment and need of less human resources, this project will
achieve the objective of Tata Motors. Currently as of 2018 Tata Motors has its
presence in 2100 tehsils of India through their project NEEV.

REVIEW OF THE LITERATURE


Kavaldeep Dixit and Priyanka Sharma (2012) in their research “Innovative
Marketing Strategies Experimented by MNCs For Exploring Vast Indian Rural
Potential” mentioned about several European multinational firms and a few US
firms have been making inroads into rural India for few years with trenchant
strategies. Companies like Unilever, Nokia, Phillips and Nestle have long been
active in bottom of the pyramid markets. Rural markets require patience and
investment by companies as in entire product category and not only position their
brands. Thus, marketers are not only marketing products, but they are
contributing to nation building by focusing on improving the standard of living
of masses. Cracking the bottom of the pyramid market in India is every
company’s dream. Intense focus on the rural and semi-urban areas has inherent
advantage. Consumer product multinationals are adopting unconventional and
innovative distribution models for better rural connect. These giants are scouting
for, incubating and investing in small, rural entrepreneurs who can assist them in
selling to low income consumers. Marketers are trying to novel ways to tap the
vast rural potential however it is wait and watch scenario for now.

Pratihar and Supratim (jul-sep2014) in their research “Marketing Mix strategies


and Business Models: Innovating for Rural India” mentioned that about three –
fourth of the population of India resides in the rural areas. The development of
the nation is inter- linked with the development of the rural population. To be
successful in the rural market companies will have to be innovative and sensitive
while devising marketing strategies. Traditional urban marketing strategies will
have to be localized as per the demands of the rural market. Markets make
consistent attempts to innovate tools and strategies to overcome the challenges
they face in business arena. Marketers need to design creative solutions to
overcome challenges typical of the rural environment such as physical
distribution, channel management, promotion and communication.

Devi Prasad Kotni (2012) in his research “Prospects and Problems of Indian Rural
Markets” mentioned that in recent years, rural markets have acquired
significance, as the overall growth of the economy has resulted into substantial
increase in the purchasing power of the rural communities. Rural markets are
defined as those segments of overall market of any economy, which are distinct
from the other types of markets like stock market, commodity market or labor
economies. So, this study was to observe the potentiality of Indian rural markets
and finding out various problems ae being faced by rural markets.

METHODOLOGY:
This research is based on descriptive research and the primary as well as
secondary data, however primary data gathering will be given more importance
since it is overhearing feature in attitude studies. Qualitative research
methodology and quantitative research methodology are two classified form of
primary data. Data collection in qualitative study is forwarded taking into
considerations interpretations that are appropriately expressed to develop internal
details followed by the complete analysis and outcome data, which need to be
categorized into groups and classes. Qualitative research methodology speculates
data from figures and statistical derivations. It leads the collected data to
numerical and consistent forms. Assessments are forward taking place the basis
of diagrams and statistical graphs.
In this research, I will use questionnaire to understand the approach of selected
section. I would further examine it with the help of qualitative approach to get the
similarities and dissimilarities between customers and others.

RESEARCH DESIGN
The study is descriptive in nature as it helps to study the factors which plays a
cardinal role in increase in sales of commercial vehicles in rural areas, the issues
to be face by TML during TGM’s recruitment and training processes.

SAMPLING METHOD:
Convenience Sampling method will be adopted for this study. Convenience is a
type of non- probability sampling which involves the sample design drawn from
the part of the population which is close to hand. That is, a sample population
selected because it is readily available and convenient. In this method the
members of the sample are collected on the basis of their convenient accessibility.
Only those members are selected which are easily accessible to the researcher.
The areas we are targeting to get this information are the “Haat” that are put up
in the rural areas on specific days.

SAMPLING SIZE:
The population size is 200 (Data of existing TGMs’). The sample size is 67(Red
TGMs’).
For the analysis of competitors product, the sampling size is 90.
PRIMARY DATA
The information that has been directly given by the prospect or obtained from the
questionnaires is considered to be primary data. The responses were recorded on
the basis of conversations with the prospects both over the phone and face to face.
The scales used in the questionnaire were nominal and ordinal. Pictures are also
taken so that it could be used for further reference.
QUESTIONNAIRE
 NGO Members
 Dealers

SECONDARY DATA
Data which exists already is considered as secondary data, such data were
collected through sources such as
 Company website
 Magazine
 Journals
 Newspapers
 Product broachers and
 Booklets etc.

LIMITATIONS OF THE PROJECT:


•Some villages under Neev blocks falls in negative zone which would create
barriers for the Finance team while recovering.
•Rigorous training to TGM’s will lead to time and cost slippages.
•Language barrier may create communication gap between TGM’s and TBSS.
•Lack of Identification proof for TGM’s to the customer.
•Overlapping geographies between Rural Neev and Urban team. This overlap is
present either ways.
Objective of the Project Neev

To discover the
potential markets in the
rural

To promote the idea of


"self-empowerment”
via vehicle ownership

To give TML true


incremental volume by
increasing sales

An illustration of TML support structure is given below for ready reference.

Above diagram shows the Neev Operating Model i.e. the structure of how Neev works.
Demand Drivers in Rural Economy

Increasing Spending
Advancemnet in Government
on products and
Agri- sector Initiatives
services

Increased reach of
Large Rural E-Commerce
Population channels in Rural
India

 A large amount has been allotted towards the rural agricultural


development. The Union Cabinet is also providing several reforms and
schemes toward the development of their business.
 According to several reports, it is estimated that the income of the people
living in rural areas as well as urban areas will almost triple over the next
two decades. It is also estimated that Rural India’s per capita disposable
income is estimated to rise to US$631 in 2020. This will in a way increase
the demand for products and increase spending on the same.
 The Govt. of India plans to integrate villages with country’s economic
mainstream by purchasing around 80000 mini buses which will connect
over 125000 villages to markets and thereby provide access to better job
and education prospects.
 The improvement of literacy rate in rural areas is two times that in urban
areas.
 Around 65% of Indian Population depends directly on agriculture and it
accounts for around 22% of GDP.
 E-Commerce players like Flipcart, Snapdeal, and Paytm have signed
memorandum of association with the Govt. to reach rural areas by
connecting with the Govt.’s common service centres being set up in
villages as a part of “Digital India” initiative.
 The Govt. of India is looking to install Wi-Fi hotspots at more than 1000
gram panchayats across India under its ambitious project called Digital
Village–thereby increasing the connectivity with the mainstream.

Rural Sales Channel and Approach

Neev aims at creating a foundation for growth in rural markets for Tata Motors
CV Range through:

 Positioning TML products as a preferred employment option for rural


youth.
 Creating a network of “Feet on Street” (TGMs, NBCs and Influencers),
marketing TML products at Taluka level.
 Enhancing the life of its “FoS” by providing an opportunity to enhance
their income level without letting them move out of their village in search
of work.

TATA MOTORS
Urban
Direct Reach Dealership Network
Reach
Semi
Urban
Indirect Reach

Rural Key Local


TGMs NBC
Influencers
Feet on Street Network

 Neev Business Correspondent- He is a representative of a bank


authorised to offer services such as cash transaction where the lender does
not have a branch. They help villagers open bank accounts, assist in
banking transactions.
 Influencers- A person whose words and actions informally influence the
actions and attitude of others is an influencer. This leadership comers from
social status, power or success in public life. They are usually Sarpanch,
Bank Managers, and Educated Rural Youth.
 Tata Gramin Mitra- He is a local citizen acting as a volunteer to generate
leads in specified territory. TGMs are sons of the soil who act as trusted
advisors to rural customers. They are assisted with extensive training to
work with TML as an extension of dealer sales team, on commission basis
to generate and help in the closure of leads from their respective tehsils.
TGMs are strictly advised not to be involved in any financial transaction
from a prospective customer on behalf of dealer. These TGMs are imparted
adequate knowledge which is reinforced periodically by Tata Motors own
staff.

The profiles that can be considered for Tata Gramin Mitra role are Unemployed
Youth, Local Mechanics, Driver, Auto sales executive, Shopkeeper, Financers,
insurance agent, salaried employee, existing Tata customers, NGO personnel,
Chit Fund Agent, Key influencer at HAAT, auto stands, Transporter, Sarpanch,
Fertiliser seller.
Key Traits of a TGM

Hunger to earn more money

Willingness to give time for Neev

Strong contact with local community

Roles and Responsibilities of a Tata Gramin Mitra

 TGM is responsible for capturing enquiries of all the prospective customers


willing to purchase commercial vehicles of Tata Motors immediately or in
in near future.
 Creating an awareness about Tata Motors Limited range as a preferred
option for employment generation among people in their territory.
 In case of the positive response from the prospect, to help faster conversion
of case, TGM to support dealer sales team in collection of documents from
the prospect, if possible take the prospect to the nearest dealer showroom
for increased engagement.
 Ensure that TGM responds to calls from TBSS and communicates all the
leads.
Organisational Structure of Neev

MITHILA MOTORS

NEEV BUSINESS
GENERAL HEAD
MANAGER
NEEV RURAL
MANAGER

SALES HEAD NEED SALES


EXECUTIVE (BLOCK
WISE)

DEALER SALES TGM TGM


MANAGER

DEARLER DEARLER DEARLER


SALES SALES SALES
EXECUTIVE EXECUTIVE EXECUTIVE
Types of TGM

GREEN TGM YELLOW TGM RED TGM

TGM are categorised in 3 performance bands on the basis of their performance


in the last quarter.

Green TGM is a person who convert more than 3 leads into sales in a quarter.
Yellow TGM is a person who coverts 1 or 2 leads into sales in a quarter. Red
TGMs are the sleeping or inactive persons who are not able to convert any lead.

• Green TGM's, are those who generate 10 leads every month


Green and out of which minimum 1 leads get converted.
TGM's

• Yellow TGM's are those who generate 10 leads in 3 months


Yellow and out of which minimum 1 lead get converted.
TGM's

• Red TGM's are those who only give leads. but some times
they could not even reach the target of 10 leads in 6 months
Red to 1year.
TGM's
End to End Lead Management Flowchart

Lead Generation- On Ground lead generation by TGM and NSE.

TBSS calls TGMs ever alternate day and records leads generated by
TGMs.

TBSS uploads the leads in CRM for real time ID generation. After that
Lead is prioritized by TBSS

A dealership wise report of daily leads is sent to the dealer, TSM, RBC
and NRM.

Lead closure by dealer team

TGM pay-out process


Swot Analysis of Neev

Strengths Weaknesses

 Coverage in rural India:  Difficult to tap Rural Areas:


Project NEEV has been able to cover the Tata Motors’ network presence is
rural India which accounts for 70% of India’s predominantly ‘urban’, making it difficult
1.15 billion population. to effectively tap rural markets, critical for
the CV segment.
 Increase in retails in a shorter period
of time:  No proper route plan by TGMs:
In each of the states, Average 20% increase This hinders their purpose of covering
in retails has been achieved through Project every area.
NEEV in 6 months from set up.
 Irregularity in payouts:
 Lesser lead time to setup Due to lack of communication, TGMs
infrastructure: payment becomes irregular.
The dealership does not have to waste time
in setting up the showrooms and manpower.  Inapt communication between
It is easier for the dealer and the company to TGMs and TBSS:
capture leads by appointment of TGMs in Sometimes, there is a lack of
every district. communication between the TGM and the
call center.
 Lower investments:
The dealership does not have to invest much  No identification proof of TGMs to
money in setting up infrastructure. the customers

 Inadequate technical training:


TGMs don’t attend many training
sessions.
Opportunities Threats

 Covering the untapped area:  Insecurity of leak of information:


Minimizing the red and black spaces in our The TGMs, DRMs, and other FOS must
territory by covering the untapped areas. keep all the data within the system and
must be restricted from sharing data with
 Increased Awareness: any competitor or external source.
Creating more awareness about new
products by tapping the NEEV network.  Self- sustainability:
The no. of leads captured and the no. of
 Government Support: retails must amount to a greater value else
Grabbing the market with improving road it is not worth for the company to spend so
conditions in villages and enhancing much money in ads, campaigns, etc.
connectivity.
 Retaining of TGMs in the system:
 Generation of New TGMs: If the TGMs do not receive their payouts
Growing our network by emerging new monthly, this will demoralize them. None
TGMs into the system, i.e., covering a will be interested to generate lead for the
larger area. company. Dissatisfaction may lead to
TGMs leaving the system and increase
unwillingness to work with the company.

 Risk of TBSS:
Faulty/ non-conveyable messages and
calls from TBSS will be a problem to the
TGMs. The TGMs themselves won’t be
updated about the TATA products, offers,
schemes, plans and present scenario.
TGM Data Analysis

The data collected from 100 respondents for TGMs to analyse the problems faced
while selling the commercial vehicles.

The following are the questions which were asked:-

1) The Age of the Respondent?

Age Response Percentage (%)


15-20 yrs. 24 24%
20-25 yrs. 40 40%
25-30 yrs. 18 18%
30-35 yrs. 12 12%
above 35 yrs. 6 6%
Total 100 100%

Percentage (%)

6%
12% 24% 15-20 yrs.
20-25 yrs.
18%
25-30 yrs.
40% 30-35 yrs.
above 35 yrs.

Interpretation
In this analysis we tried to find out the age of those Red TGM's .From our analysis
we got to know that maximum of them are of the age group of 20 - 25 years .Thus
most of them are the Rural youths who are willing to work as TGM's.
2) What is your educational qualification?

Qualification Response Percentage


10th 18 18%
12th 52 52%
Graduation 28 28%
Post- Graduation 2 2%
Total 100 100%

Educational Qualification

2%, 18%,
2% 18%
28%, 28%

52%, 52%

Interpretation

This question was asked to find out the qualification of the respondents’. From
the analysis we found that 52% are qualified up to standard 12th. This means that
most of them a literate and are fully capable of being employed as a TGM.
3) What is your occupation?

Interpretation

From this question we wanted to analyse the occupation of the responded .We
found that maximum of them were the drivers who owned the vehicles and used
them for business purpose. They had good knowledge about the vehicle and also
were willing to become TGM's. Bankers are 18%, mechanics are 14% and
farmers are 4% who all are interested in becoming TGM’s but they lack
knowledge related to the products and so they should be given proper training so
that they can explain properly to the prospects.
4) What is your Average Income?

Interpretation

From the above Pie Chart, it can be interpreted that out of 100 respondents, 40%
of the respondent has income between 5000 to 10000 followed by 23%
respondent which has income less than 5000 while 20% respondent comes under
10000to 15000 and the rest account for 15% and 2% respectively.
5) How long have you been working as a TGM?

Interpretation

In this analysis we tried to find out the number of years they have worked as a
TGM. We found from our analysis that most of the have worked for less than six
months. They are completely new to the system and they would require sometime
to fully function as a successful TGM.
6) Have many leads have you generated till now?

Interpretation

From this analysis we found that since most of the Red TGM'S are newly
recruited hence they find it difficult to generate more leads. The maximum leads
generated by them lie in the range of 1 to 5. These TGMs’ who generate less than
10 leads are not motivated to work. Also, there is no identification for the existing
TGM’s, sometimes dealers do not talk or they take the credit for themselves.
Sometimes TGM’s do not have enough knowledge about the products so it
becomes difficult for them to explain the important features and there is no proper
plan for their development. So proper Training is required.
7) Do you know about all the SCVs Product of TML?

Interpretation

From this analysis we tried to find out the awareness about the TGM's regarding
the Small Commercial Vehicle. Since most of the TGM's are drivers they do have
very good knowledge about the various small commercial vehicles.
8) Is it difficult to achieve the target?

Interpretation

88% TGMs feel that the target of achieving 10 leads is difficult because they
don’t get time to work as a TGM. They are mostly busy in their own job.
Sometimes, they only gave 1 lead which was converted but they still didn’t
receive the payment. They also lose interest to work further for the company.
They even lack motivation.
9) Why they are unable to generate leads/What are the main challenges do you
face?

Interpretation

We tried to analyse the major challenges faced by the TGM's in generating leads.
We found that most of them had issues with Payment Delay. Some of them also
complained of irregular payments and in some cases no payments at all.
10) What are the reasons behind becoming TGMs?

Interpretation

In this question we were trying to analyse the various possible reasons for
motivation the respondents to become a TGM. We found that the major
motivating factor for the TGM's was the monetary gains that there were getting
from becoming a TGM and generating leads or enquiry in the Rural Areas.
11) Are you happy with the benefits provided by the company for being a TGM?

Interpretation

In this question we tried to analyse if the respondents were satisfied with the
benefits, they were getting from becoming the TGM's. We found that most of
them were satisfied with the benefits. The only concern for them was all the
benefits mentioned were not being implemented efficiently.
12) Any Sales Executive has visited you in the last couple of months?

Interpretation

We wanted to know how often have the TGM's been visited by the Sales
Executive in the last couple of months. From the Analysis we found that most of
the places there hasn’t been any recent visits by the sales executive. They also
informed us about some discrepancies on the sales executives end in accounting
the leads generated by particular TGM'S.
13) Have you received any TGM Personal training from someone?

Interpretation

In this question we tried to find out if the TGM have received any form of training
before being assigned the role. From our analysis we found that most of them
have received some training before becoming the TGM.
14) Was the training provided Satisfactory?

Interpretation

This question was asked to find out whether the TGM's were satisfied with the
training been given. From the analysis we found that most of them were satisfied
with the training and they were able to understand the operating model.
15) Have you been given a TGM kit?

Interpretation

93% of the TGM’s have not been given TGM’s kit and they do not have any
information about what TGM’s kit is and what all things TGM’s are provided
with. So it is mandatory to give all the red TGM’s their TGM kit and ID card if
possible so that they have their legal identity. Proper record should be maintained
of whoever has or hasn’t got the kit.
16) Have you participated in any BTL activities/ TGMs meet?

Interpretation

We asked this question to find out if the TGM's have participated in the TGM's
meet. From the response we found that most of them did participate in the TGM's
meet and were willing to be part of more such Meet ups.
17) How do the people of rural area consider this concept?

Interpretation

From the above Pie Chart diagram, it can be interpreted that 90% of the
respondents take this TGM concept as an opportunity while the rest 10% of the
respondents take it as a burden.
Findings and Suggestions
Findings

 We Found that maximum of them are of the age group of 20 - 25 years


.Thus most of them are the rural youths who are willing to work as TGM'S.
 We found that most of them are qualified up to standard 12th .This means
that most of them a literate and are fully capable of being employed as a
TGM.
 We found that maximum of them were the drivers who owned the vehicles
and used them for business purpose .They had good knowledge about the
vehicle and also were willing to become TGM's.
 We found from our analysis that most of the have worked for less than six
months .They are completely new to the system and they would require
sometime to fully function as a successful TGM.
 We found that since most of the Red TGM'S are newly recruited hence
they find it difficult to generate more leads .The maximum leads generated
by them lie in the range of 1 to 5.
 We found out that the awareness of the TGM's regarding the Small
Commercial Vehicles was adequate. Since most of the TGM's are drivers
they do have very good knowledge about the various small commercial
vehicles.
 We found out that most of them said that it’s really difficult to generate 10
leads a month.
 We found that most of them had issues with Payment Delay .Some of them
also complained of irregular payments and in some cases no payments at
all.
 We found that most of them were satisfied with the benefits .The only
concern for them was all the benefits mentioned were not being
implemented efficiently.
 We found that most there hasn’t been any recent visits by the sales
executive .They also informed us about some discrepancies on the sales
executives end in accounting the leads generated by particular TGM'S.
 We found from their response that most of them did not receive the KIT.
This Kit contains all the necessary information the TGM'S need to know
about project Neev and the various products of Tata Motors.

Suggestions

 Since most of the respondents are youth, TML should target the rural
youths who can become TGM’s .We should make the youth realize that
this can be a source of income and employment for them.
 Tata motors should appoint more qualified TGMs’ as they will be more
focused, can learn easily, and understand better and they can also deliver
the same in better manner.
If they have the skill to explain properly and attract more customers, then
company will automatically have a hike in their sales figure.
 As most of the youth are literate so it won’t be difficult to make them
understand the math behind becoming a TGM and the profit associated
with it. We just need to make sure we constantly motivate them to perform.
 We see that most of the TGMs have good knowledge of the vehicles .We
need to channelize on these aspects and teach them to convince people on
the basis of their technical expertise about the Product. As customer will
trust them because they are related to the same industry and think that they
can suggest them better.
 Maximum TGM’s who are a part of the Red TGM list are very new to this
project .We therefore have to give them some time to see what are the
actual challenges faced by them .After they a part of the system for more
than a year then the feedback by them will be of more value to us.
 As the maximum leads that they could possible generate is 1-5 hence we
need to keep targets for them like maximum of 7 to 8 lead a month. If they
are not able to achieve it we need to be a little soft with our approach to
push them to increase the number as they are new to the system.
 Since TGM’s would be the first point of contact with our customers, The
knowledge of the TGM’s should be capitalized on .We need to have more
conversation with them to try and find out what all can we improve in terms
of marketing, pricing and advertising of the various products .Also the
technical changes that we can do to meet the customer’s requirement.
 As generating 10 leads a month is difficult for them .We need to give them
more achievable targets and see how they respond to them .If we get
positive response we can slowly increase the number considering their
level of motivation.
 We found that most of them had issues with the payments .They mentioned
that they either did not get payments or got very late payments for the leads
they generated .This can be a serious problem since the most important
motivation for the TGM’s are the incentives and if they don’t get that on
time they would lose their motivation. We need to either pay them digitally
or through faster modes of payments as soon as the service is given.
 Most of the TGM’s are satisfied with the benefits they get .Hence we need
to make sure they get those continuously for the services they give to TML.
 TML should keep a check on all its dealership to make sure the sales
executive visit the TGM’s on a monthly basis. They should act as a
mediator between TML and the TGM’s .They should reach out to them and
try and understand the challenges faced by the TGM’s .This information
should then be provided to the TML marketing team as a part a valuable
feedback.
 The Training is really important to prepare the TGM’s to act as a
representative of a brand as big as Tata Motors. This training can be useful
for them to understand the various products of SCV of Tata Motors .This
will also make them understand their job role a much efficient way.
 The module for the training should be designed in such a manner that it
gets completed within a day and the TGM’s are able to capture all the
information they need .They should also make sure that the training
sessions are very interactive so that the understanding about TGM and
Project Neev is clear to everyone.
 The TGM’s should be provided with the TGM KIT that would act a source
of guidance to them in case of any doubt .This KIT should contain all the
information necessary for the TGM’s including the contact information of
the all the focal points .TML should make sure that each and every TGM
must have the KIT.
 The project Neev is targeted for the rural segment hence TML has to
perform a lot of below the line activities to create awareness about its
project and the various commercial vehicles of Tata Motors. They should
also make sure that there are monthly TGM’s meet happening where
information exchange and knowledge transfer can happen
CHI-SQAURE TEST ON MAHINDRA BOLERO PICKUP

Degrees Of Freedom= (6-1) = 5


Level of significance=5%
Chi-square =45.18
The calculated value is 73.1
The chi-square table value at 5% level of significance at 5 degrees of freedom is
11.070.
H0: There is no significant difference between factors (Maintenance, Load
capacity, Pickup, Price, Driving Comforts, Mileage)
H1: There is significant difference between factors (Maintenance, Load
capacity, Pickup, Price, Driving Comforts, Mileage)
Interpretation:
The computed value of chi-square is greater than the table value. Hence, the
null hypothesis is rejected. So, there is significance difference between the
preferable factors.
Suggestion:
As there is significance difference among the factors there is a high chance of
TATA XENON YODHA to improve its market share if Tata Motors tries to
focus on any of the three features.
Conclusion
I got opportunity of Summer Internship Program (SIP) in Tata Motors
Jamshedpur, Jharkhand. My objective of the study was to understand the Neev
Initiative of Tata Motors and analyse the performance of the TGMs of Small
Commercial Vehicle (SCVs) in Jharkhand area. So to conclude I would like to
say that Tata Motors is one of the largest automobile manufacturer in the India
and serves the community with utmost sincerity, dedication and respect.

TGMs concept is a slow process but has a wider scope in the near future which
will in turn help the Tata Motors to grow and capture a huge market share wherein
the people will change their perspective of Tata Motors and will bring a great
change in the Industry as Tata Motors will be able to earn more revenues generate
more sales and will provide more employment opportunities to rural people.

As the low performing TGMs face so many problems with respect to irregular
payments, unachievable target, lack of training, etc., Tata Motors should work in
these areas to make sure that these problems are not faced by the TGMs to keep
them more positive and motivated to work for the company.

Similarly, if Tata Xenon Yodha is re launched with the given changes and more
brand awareness it would do great in the market.
REFERENCES

1. http://www.tatamotors.com/about-us/our-businesses/

2. http://www.tata.com/aboutus/sub_index/Leadership-with-trust

3. http://www.ruralmarketing.in/

4. http://www.yourarticlelibrary.com/marketing/rural-marketing/rural marketing-

introduction-concept-and-definitions/48725/

5. http://www.yourarticlelibrary.com/essay/rural-marketing-in-india-definition-and-
features-

of-rural-marketing/32335/

BOOKS

 Marketing Management 14th Edition—Philips Kotler


 Strides Magazines by Tata Motors
 Business research and modeling by William G.Zikmund

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