Executive Summary

The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have increased over the corresponding period in the previous year. Further competition is heating up in the sector with a host of new players coming in and others like Porches, Bentley, Audi, Nissan, Volkswagen and BMW all set to venture in Indian markets. One factor that could help the companies in the marketing of their products is buying Behavior of the consumers. The Buying Behavior of the customers can be studied by knowing their perceptions about the cars in the market and about the possible entrants in the market. One such technique is by knowing and creating a personality for the brands. This personality sketching will help in knowing what a customer (or a potential customer) thinks about a given brand of car and what are the possible factors guiding a possible purchase. Similarly, the idea of measuring the customer satisfaction will serve the same purpose of determining the customer perception. Thus, by measuring the willingness of existing users of a car to recommend it to others will help the car manufacturers to chalk out the entire Customer Buying Behavior. The reports shall attempt to answer some of the questions regarding brand personality of selected cars in India by conducting a market research. The market research will be helpful for the new car entrant companies in India to find out the possible gaps between the customer expectations and the present market offerings. This way these companies will be able to find their share in the ever-expanding Indian market pie. The research will track the customer satisfaction in the following two layers:

Product related Parameters Dealers related parameters

The customer satisfaction index will be calculated for the car brands taken into consideration. It will be mainly a primary research and the information will be gathered from both primary and secondary research. The study will analyze the applicability of existing research concepts, theories, and tools for evaluating consumer satisfaction.

INTRODUCTION
India is an emerging country with huge potential. The domestic economy is now growing at around 8-9% per annum and Indias importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of Indias new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturers product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain. India eyes 25 million automotive jobs. India's GDP is set to double over the next decade In percentage terms, the automotive industry's contribution should also double. In dollar terms, the sector's contribution is set to quadruple to some $145bn With the worlds second largest and fastest-growing population, there is no denying Indias potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.

HISTORICAL BACK GROUND OF AUTO INDUSTRY

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

OVERVIEW OF THE AUTO SEGMENT

Indians have emerged as avid car enthusiasts sporting their prized possessions as status symbols and speed machines. Foreign car companies have discovered the Indian consumer as well as the R & D potential in the Indian technical fraternity and are setting up manufacturing plants right and left across the country at lower costs. The Indian automobile industry is currently experiencing an unprecedented boom in demand for all types of vehicles. This boom has been triggered primarily by two factors:

(1) increase in disposable incomes and standards of living of middle class Indian families estimated to be as many as four million in number; and (2) The Indian government's liberalization measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled financing-driven purchases. Industry observers predict that passenger vehicle sales will triple in five years to about one million, and as the market grows and customer's purchasing abilities rise, there will be greater demand for higher-end models which currently constitute only a tiny fraction of the market. These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and component industry. India is fast integrating itself into the world economy and open to international automotive companies, who are increasingly investing in India.

The Indian automotive and component industry is looking to increase the quality of production from existing levels, to develop new products and to increase exports. In the long run India is well set to become a key market for automotive and component manufacturers in terms of local demand and as a base for export.

Additionally, companies such as GM, Daimler Chrysler, Toyota, Delphi and MICO/Bosch are utilizing Indias well developed IT / software capabilities and have set up R&D hubs here for their global operations

Industry Size
The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units (with a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million units (with a registered CAGR of 68 per cent over the past 4 years) during financial year 2010. The Indian two-wheeler Industry is one of the largest in the world, and is expected to maintain robust growth in the future At the back of this phenomenal automotive growth is the success of the Indian auto component industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less than eight years time to US$ 17 billion by 2012 India offers a distinct technological and cost-competitive advantage, which global Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both manufacturing and research facilities. The passenger car market is projected to grow at a CAGR of 12.3 per cent over the next few years. Growth in the mid-size and premium car segments is expected to outpace the overall market growth.

Indian Automobile Industry

Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure, design and development, and marketing. Automobile industry in India is today poised for the big leap.

India is the 2nd largest two wheeler manufacturer in the world Second largest tractor manufacturer in the world 5th largest commercial manufacturer in the world 3rd largest car market in Asia, surpassing China in the process

Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is a driver of product and process technologies, and has become a excellent manufacturing base for global players, because of its

high machine tool capabilities Extremely capable component industry Most of the raw material locally produced Low cost manufacturing base Highly skilled manpower Special capability in supplying large volumes

Domestic and Foreign Vehicle Manufacturers

Passenger Vehicles The main domestic manufacturers of passenger vehicles are as follows:

Maruti Udyog Tata / Telco Mahindra / Mahindra Hindustan Motors

Foreign competitors are manufacturing locally including Hyundai, Ford, General Motors, Honda, and Toyota. Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and cheaper finance. A large number of new models, both locally assembled and imported, have also revitalized the market. In terms of volumes: The A/B segments are where Indias strength and future lies. The A/B segment accounts for over 65% of the total passenger vehicles produced. Competition in this segment is stiff with Maruti the market leader with around 55% market share. New models from Telco (Indica), Hyundai (Santro, i10) and Fiat (Palio) however are eroding Marutis long standing dominance in this segment. The mid / luxury range is developing with the introduction of Ford (fiesta), Hyundai (Verna/Sonata) and Skoda (Octavia), although the volumes are not significant. 8

The UV segment remains sluggish with growth at just over 1%. The clear market leader, Mahindra (44% market share) posted increased sales of 9% in the first 3 quarters of 2002/03. Toyota and Telco domestic UV business remains flat.

Commercial Vehicles The main Indian companies in the Commercial Vehicle segment are:

TATA Engineering and Locomotive Company (TELCO) Ashok Leyland Bajaj Tempo Ltd Eicher Motors Ltd Swaraj Mazda There is only one international company currently manufacturing CVs in India, Volvo but again volumes are not large. Other global players are active, although in partnership with one of the domestic manufacturers E.g.:- IVECO (manufacturing their range of trucks in association with Ashok Leyland. There has been a significant turnaround in this segment over the last 18 months with over 30% growth being seen in terms of both production and sales.

This sector has received a huge boost with Indias massive demand from the infrastructure sector (particularly roads), cyclical fleet replacement by fleet owners and an upturn in the cement and steel sectors.

Automobile Manufacturers Market Share Passenger Cars LCV

Hyundai 18% Tata 13% Fiat 4% Ford 3% HM 2% Maruti 55% Honda Toyota 0.3% Daimler GM2% Chrysler 1% Skoda 0.2% Mitsubishi 1% 1%

Ashok Leyland 1%

Bajaj Tempo 7% Eicher 8%

HM 2% M&M 30%

Tata 44%

Swaraj Mazda 8%

Maruti (JV with Suzuki), leading the market, Tata and M&M are the key players

a) Followed by Hyundai and Tata, together hold close to 75% of market b) Daewoo stopped production, mainly due to financial issues 2 years back

Some facts
The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

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COMPANY PROFILE
The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow, Pune, and Singur. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands more than 20,000 employees working in plants as well as other regional and zonal offices across the length and breadth of India.

Tata motors passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a 11

subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2005-2009, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2008from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4,150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 crores, the so called A share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 crores) Borrowed for Acquisition of Jaguar and Land Rover from their principle The Ford Motor Companys.

FIVE CORE VALUES OF TATA

The Tata Group has always sought to be a value-driven organization. These values continue to direct the Groups growth and businesses. The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly, with honesty and Everything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve. Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. 12 transparency.

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

GROUP PROFILE OF TATA

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The growth of the Indian middle class along with the growth of the economy over the past few years has attracted global auto majors to the Indian market. Moreover, India provides trained manpower at competitive costs making India a favored global manufacturing hub. The attractiveness of the Indian markets on one hand and the stagnation of the auto sector in markets such as Europe, US and Japan on the other have resulted in shifting of new capacities and flow of capital to the Indian automobile industry. According to the International Yearbook of Industrial Statistics 2008 released by United Nations Industrial Development Organization (UNIDO), India ranks 12th in the list of the worlds top 15 automakers. INDIAS LARGEST BUSSINESS GROUP DIVERSE BUSSINESS IN 7 SECTOR INTERNATIONAL INCOME 61%OF GROUP REVENUE OPERATION IN OVER 80 COUNTRIES PRODUCT AND SERVICES EXPORED IN 85 COMPANIES LARGEST EMPLOYER IN PRI VATE SECTOR OVER 300,000 GROUP REVENUE FY09 : 251,543 CR/ $62.5 bn In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It had also developed the capability of designing, testing and manufacturing of such vehicles. With the Launch of Tata Indica, a Euro 2 compliant vehicle is the countrys first indigenously designed, developed and manufactured passenger car. With the launch of Tata nano, Tata has penetrated the market to its extreme by making a car available for Rs. 132000 only. This is the cheapest car in India till date and with the announcement of its diesel variant it has made potential buyers to eagerly wait for it. 14

Products of TATA Motors Passenger cars and utility vehicles

Commercial vehicles

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Concept vehicles
2000 Aria Roadster 2001 Aria Coupe 2002 Tata Indica 2002 Tata Indica 2004 Tata Indigo Advent 2005 Tata Xover 2006 Tata Cliffrider 2007 Tata Elegante 2009 Tata Prima

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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 to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, giving it controlling rights of the company. Hispanos presence is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & 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 Marco polo, a global leader in body-building 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 have franchisee/joint venture assembly operations in 17

Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa. The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set 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 policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. 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 CV will have to face tough competition in near future, which might affect its growth negatively.

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CURRENTS FACTS
Today Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. Another more important way of advertising is to create an image or brand image. Take BMW Z3 for example, it was introduced in 1996 and shortly the car has been used in the famous James Bond movie. Over the years Tata Motors have been successful in creating their brand image. The packaging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One of these innovations is the Tata Safari 4X4 Dicor that has Reverse Guide System. A weather-proof camera is fixed to the rear car to help the driver while reversing the car. There are various factors to determine a price of a car. These factors are such as market condition (it cant be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost incurred to build a car, profit by company, dealer profit. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Discount can be made from Companys profit or from dealers profit at certain range.

Place of dealership does play an important role. The channel of distribution, physical
location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership. The industry witnessed a change in demand dynamics in last few years. The demand for LCVs in the <=3.5 tones segment is rising at the cost of demand in 5 to 7.5 tones category, while demand in 7.5 to 12 tones segment and 16.2 to 25 tones segment is 19

booming at the cost of demand in 12 to 16.2 tones segment. Demand for trailers of >35.2 tones is witnessing a surge while demand for semi-trailers in 26.4 to 35.2 tones segment is suffering. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution, which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. According to the Hub & Spoke model, HCVs plying over the highways to transport goods to different states and districts, while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 tonner vehicles

As TATA MOTORS is regarded as one of the best fuel efficient cars. Hence I conducted a study on the consumer perception about small cars. Firstly, I took three brands of small cars; Zen estilo, Indica and Santro for a comparative study of small car segment. Later I went through the process of filling the questionnaires, to know exactly what the customers of small cars perceived about their cars. Tata motors were established on September 1, 1945, originally for the manufacture of Steam Locomotives at Jamshedpur. All the cars taken for the sample showed that the consumers perceived them as almost same in all the attributes like safety, comfort and luxury. But, at the end the research was limited due to small sample size, small sample area and time constraints.

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Review of Literature
Brand Personality
A brand is a set of expectation and association evoked from a company or product. A brand is how your key constituents- customers, employees, shareholders etc. experience what you do. Some brands are of such great importance to people, that we speak of them as a part of ones life and identity, being used to express one. Some would say that these brands have their own personality, the brand personality, which can be defined as the set of human characteristics associated with a given brand. Thus, it includes such characteristics as gender, age and socioeconomic class, as well as such classic human personality is both distinctive and enduring. Based on the premise that brand can have the personalities in much the same way as humans, brand personality describe brands in terms of human characteristics. Brand personality is seen as valuable factor in increasing brand engagement and brand attachment, in much the same way as people relate and bid to other people. Much of the work in the area of brand personality is based on translated theories of human personality and using similar measures of personality attributes and factors. Brand personality refers to the set of human characteristics we associated with the brand. A common way of determining this is to reply on the metaphor: If the brand was a person, what would he/she be like? we then list and group the traits to describe the brand as, for example: caring, approachable and trustworthy. However, there is a lot more we can do. Because many people interact with brands as though they were other people, it is important to understand what a brand personality consists of, and how its characteristics can be used to affect the relationship between the brand and its user. Knowing and understanding the

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brand personality gives a good insight into this relationship, and into peoples attitudes towards the brand, and is also as important guide to communicating the brand.

VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY

Peoples personalities are determined largely through the value and beliefs they have, and other personality characteristics they develop. An example of value or belief is honesty. Many people believe in being honest in everything they do and say. An example of characteristic is confidence. This is not a belief, but more of a behavior. There are, of course, many value/beliefs and characteristic that a person may have, but there are some that are particularly likeable. It is these likeable values and characteristics that people are inevitably attracted. Examples of these include dependability, trustworthiness, honesty, reliability, friendliness, caring, and fun-loving. There are about two hundred words that describe personality characteristics, and these can be used for putting personality into brands. To illustrate how people think in personality terms when making judgments about brands, here are the results of consumer research into how people feel about tow companies. When asked question: if these companies are people, how would you describe them? their replies were: Company A Sophisticated Arrogant Efficient Self- centered Distant Company B Easy going Modest Helpful Caring Approachable

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Disinterested

Interested

These two companies are actually competitors in a service industry. If you were asked of these two companies you would like to be your friends, you would probably choose company B, as did 95% of other respondents. It is not surprising that the service level of company B can be better experience for customers than that of company A. it is also easy to conclude that if customers consistently experience these differences between the two companies, then the brand image of company B will be much better than company A. A further point of interest arising out of this research is that people tend to prefer brands that fit their self-concept. Everyone has views about themselves and how they would like to be seen by others. And they tend to like personalities that are similar to theirs, or to those whom they admire. Thus, creating brands with personalities similar to those of a certain group of consumers will be an effective strategy. The closer the brand personality is to the consumer personality (or one which they admire or aspire to), the greater will be the willingness to buy the brand and deeper the brand loyalty.

The Creation of Brand Personality

Brand personality traits are formed and influenced by any direct or indirect contact that the consumer has with a brand. A brand, unlike a person, cannot think, feel or act. A brand has no objective existence at all; it is simply a collection of perception on the mind of the consumer. Consumers accept the marketing actions to humanize brands. One explanation for this can be found in the theories of animism, which suggest that there exists need by people to anthropomorphize objects in order to facilitate interaction with the nonmaterial world. Anthropomorphize occurs when human qualities are attributed to non human objects, e.g. brands. 23

Consumers easily assign personality quality to inanimate objects like brands in thinking about the brands as if they are human characters.

In a direct way, personality traits are associated with a brand by the people associated to that brand. One direct way to form and influence brand personality is user imaginary. User imaginary is defined as the set of human characteristics associated with the typical or stereotype user of the brand. Associations with the company employees or CEO and the brands product endorsers are also direct ways by which brand personality traits are formed and influenced. The personality traits that of the people associated with a brand are transferred directly to the brand. The theories of animism describe another process mechanism that directly explains the specific ways in which the vitality of the brand can be realized. Spokespersons that are used in advertising can have personalities that fit those of the brand they advertise. Over time, the personalities of the spokesperson are transmitted to the brand. The brand-person associations can also have a more personal nature. Brands can be associated with person who use or used that particular brand, for example a close friend or a family member. Also, brands received as gifts can also be associated with the person from whom the gift was received. These person associations serve to animate the brand as a vital in the minds of the consumers. Obviously, this aspect is much less under the control of the marketers. Indirectly, the brand personality is created by all the elements of the marketing mix. Betra, Lehman and Singh suggest that the personality of a brand is created over time, by the entire marketing mix of the brand - its price (high or low, odd or even), retail store location (imaginary associations), product formulation (ingredients, benefits), and product form

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(solid/liquid. Etc.), packaging details (color, size, material, shape), symbol; used an all phases of the brand communication, sales promotion, and media advertising.

Another form of animism explains how brand personality is created in a more indirect way. This form of animism involves complete anthropomorphization of the brand object itself. Human qualities of emotionality and thought are transferred to the brand. This is achieved with the help of the marketing actions, especially advertising. For example, the brand character of M&M in the M&M commercials has the capacity to laugh and joke. One of the advantage of the brand personality is that based on their distinctive personalities, consumers are able to differentiate between brands. Another advantage is that the consumer can interpret the brands image in such a way that it is personally more meaningful. Brand personality encourages more active processing on the part of the consumer. Thus, the consumer put more efforts in creating and using the brand personality. A further advantage of brand personality is that life is given to a brand. By vitalizing a brand, another perspective of brand personality can be examined, namely the role of a brand as relationship partner in a consumer-brand relationship. Next we will concentrate on these consumer-brand relationships. Whether the brand is a product or a company, the company has to decide what personality traits the brand is to have. There are various ways of creating brand personality. One way is to match the brand personality as closely as possible to that of consumers or to the personality that they like. The process will be Define the target audience Find out what they need, want and like Build a consumer personality profile 25

Create the product personality to match that profile

This type of approach is favored by companies such as Levi Strauss, who research their target audience fastidiously. For Levis the results is a master brand personality that is: Original Masculine Sexy Youthful Rebellious Individual Free American

A related byproduct brand personality (for a specific customer group) such as Levis 501 jeans is: Romantic Sexually attractive Rebellious physically prowess Resourceful Independent Likes being admired

Both profile appeal mostly to the emotional side of the peoples minds- to their feelings and sensory function. This profiling approach aims to reinforce the self-concept of the consumers and their aspirations. The approach is ideal for brands that adopt a market-niche strategy, and can be extremely successful if a market segment has a degree of global homogeneity, as is the case with Levis. 26

Non product related brand personalities drivers

User imaginary user imaginary can be based on either typical users (people you see using the brand) or idealized users (as portrayed in advertising and else were). User imaginary can be powerful driver of brand personality, in part because the user is already a person and thus the difficulty of conceptualizing the brand personality is reduced. For example Charlie has a feminine, strongly independent brand personality driven by it user imaginary. The upscale personality of Mercedes and the sexy, sophisticated personality of Calvin Klein are similarly influenced by user imaginary. Sponsorship activities such as events sponsored by the brand will influence its personality. Swatch, for example, reinforces its offbeat, youthful personality will targeted sponsorships that have included the Freestyle Ski World Cup in Breckenridge, the first International Age how long a brand has been on the market can affect its personality. Thus new entrants such as Apple, MCI, and Saturn tend to have younger brand personalities than brand such as IBM, AT&T, and Chevrolets, and it as all too common far a major dominate brand to see as strongly and old fashioned, a brand for older people. Symbol a symbol can be powerful influence on brand personality because it can be controlled and can have extremely strong associations. Apples bitten apple, the Marlboro cowboy, the Michelin mans all helps to create and reinforce a personality for their brands.

Why use brand personality

The brand personality construct can help brand strategies by enhancing their understandings of peoples perceptions of and attitude towards the brand, contributing to a differentiating brand identity guiding the communication effort and creating brand equality. 27

Enriching understanding The brand personality metaphor can help a manager gain an in-depth understanding of consumer perceptions and attitudes towards the brand. By asking people to describe a brand personality, feelings and relationship can be identified that often provide more insight than is gained by asking about attribute perceptions.

Contributing to a differentiating identity Strategically, a brand personality, as a part of a core or extended identity, can serve as the foundation for meaningful differentiations. Advertising agencies such as Young & Rubicam and Ogilvy & Mather routinely include a brand personality statement as a part of their brand positioning strategy.

Guiding the communication effort Tactically the brand personality concept and vocabulary communication are the brand identity which richness and texture to those who must implement the identity building effort. Practical decisions need to be made about not only advertising but packaging, promotions, which events to associate with, and the style of person interactions between the customer and the brand.

Crating brand equity The brand personality creates brand equity. The self-expression model explains this. The model says that for certain groups of customers; some brands become vehicles to express a part of their self-identity. People express their own or idealized identity in a variety of ways, such as a job choices, attitudes, options, activities and lifestyles. Brand that people like, admire, discuss, buy and use also provide a vehicle for self-expression.

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Brand personality of cars

Are you what you drive? That is what are companies seem to be asking and in the same breath trying to convince you about. In other words, are you the Hyundai accent owner who commands immediate respect wherever she goes (including fro the potential father-in-law) or are you the suave executive from the Chevrolet ad who is ever ready to share a moment with loved one? With a plethora of new models in the market, and generic benefits (such as space or fuel efficiency) of a particular car segment hardly a distinguishing factor between car models, marketer are increasingly differentiating on the emotional pay-off a particular car model/brand provides to the customer. This, of course, varies from the segment to segment and also on how long a particular model has been in the market. For instance, while advertising for entry level or smaller cars tends to focus more on the rational or functional benefits of the vehicles, the differentiations is increasingly on the emotional benefits when it comes to high end cars. Generally, it has been seen as one move up the value chain, the differentiation is more on the emotional pay-off. People buy car as an extension of their personality rather than just features. A car, in India, helps build up show off, social esteem value. The advertising would also vary according to the segment which one is targeting, he says. For instance, the Chevrolet Optra ad (which depicts a young husband driving his wife to see the moon on the occasion of Karvachauth) shows an Optra consumer as someone who believes in family values and indulging loves ones. We find that typically profile of an Optra consumer is someone who is in the age group of 3545years and has a chauffeur. He buys a car not only for himself but also for the family and tries

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to make up, for not being able to spend enough time, by indulging love ones, points out dutta. The positioning goes well with the companies catch lines of for a special journey called life.

High end car maker Skoda auto too, through its advertising, attempts to connect with its consumer on emotional level. Car is the extension of the personality and our advertising shows the consumer to be youthful, image-conscious and even bit a macho. The campaign jointly made by Skodas marketing department and ad agency IB&W not only communicates the quality of the brand but an appreciation for the finer things in life. The target Skoda consumer is a SEC A1, primarily male, businessman or someone in the senior management, says Shashank vaid, manger (marketing), Skoda Auto India. Surely, image building does come higher in the consumers scheme of priorities when buying a new car than ever before.

The importance of brand image has risen sharply in the last few years. At the segment level, the increase in importance is greater for the mid-size cars, indicating the relevance of brand among the more expensive market segments. The manufacturer need to focus more o how consumers perceive them as offering exciting cars and being committed towards them. Contemporariness of model has a big impact on purchase decision. The perception of the car in terms of its performance and design, quality, sales, after sales, cost of ownership, apart from brand image, all impact upon the purchase decision.

According to Bhatia, as long as advertising for cars is strongly differentiated and sharply positions the model and at the same time satisfies a define need segment, it shall have the capability to break the clutter and creates a unique and compelling reason for consumers to 30

purchase. One good example of this is Ford Ikon- the josh machine made a tremendous impact on consumers in offering to satisfy a clear need. You can see some more of this with a recently launched premium hatch back as well.

Interestingly, the strategy marketer follow changes a bit when it comes to addressing the smaller car category with the rational benefits of a brand tending to be the focal point of the campaign. We have found that typically a buyer for a smaller car (sub Rs 4 lac) looks for aspects such as reliability and fuel efficiency. This changes as we move up since in case the consumer has been with the category for a longer time and hence it is important t to talk of an emotional pay off.

A case in point is the Maruti 800 campaign in which the kids who is playing with a toy Maruti 800 exclaims to his dad (when asked how long will he keep on running the car), papa ki Kara, petrol khatam hi nahin Honda. The ad cleverly conveys that the car just keeps going on and on. It ends with the voiceover telling us that Maruti Suzuki is most fuel-efficient car.

However in the small car segment, the rational benefits magic is not always applicable. Take the case of Hyundai Santro, the advertising of which has evolved over the years from initially conveying mainly the functional benefits of the model to connecting with the consumer on an emotional level now. When we launched the Santro, we started with the positioning if the car being a complete family car which was completely rational positioning. But then two things happened- the product found acceptance in the market and the competition came up with similar product in the market.

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Brand image is not driven by good advertising alone but is significantly impacted upon by the cars performance and design, quality, and the cost of ownership. Among the three, product quality has the highest correlation with brand image. Small car buyer seeks capability in advertising, and fuel efficiency is relatively more important to them. Technology, innovation, and good influence premium mid-size buyers. One reality for us in India is that the market is extremely price/value conscious. While making purchases based on above, there is rational side, which does have an impact on the decision on a particular make and model of car. Be it rational or an emotional decision, consumers would have to think as a bevy of new models flood the Indian market.

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CONSUMER BUYING DECISION PROCESS

There are following five stages in consumer buying decision Process. 1. Problem identification: The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a Particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest. 2. Information Search: The consumer tries to collect information regarding various products/service. Through gathering information, the consumer learns about completing brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade fair etc. Marketers should find out the source of information and their relative degree importance to the consumers. 3. Evaluation of alternative: There is no single process that all consumers can use in all buying situations. There are several things that come first, the consumer processes, some basic concepts are: First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

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Problem Identification

Information search

Evaluation

Decision

Buy

Post Purchase Dissonance

Dissatisfaction = Brand Rejection

Satisfaction = Brand Acceptance

4. Choice of purchasing decision:From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy if the decision is to buy. The other additional decisions are:

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Which types of bike he must buy from whom to buy a bike? How the payment to be made? And so on. The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand. 5. Post Purchase Behavior:After purchase the product, the consumer will experience the same level of product. The Marketers job not end when the product is buying must monitor post-purchase satisfaction, postpurchase action, post-purchase use and disposal. Post Purchase Satisfaction:The buyer, S satisfaction is a function of closeness between the buyer, S expectation and the products Perceiver performance. The larger the gap between expectation and performance, the greater will be consumer dissatisfaction. Post purchase Action:The Consumer, S satisfaction or dissatisfaction with the product influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and return the product. Post-Purchase Use or Disposal:The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment. 35

CHARACTERISTIC OF BUYER BEHAVIORS

The chief characteristics of the buyers behaviors are as follows:

1.

It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them.

2.

It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands.

3.

Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot.

Product Quality

Service Quality

Relationship Quality

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PROBLEM DEFINITION
PROBLEM DEFINATION OBJECTIVES OF STUDY SCOPE OF STUDY LIMITATIONS OF STUDY

Consumer says something does something. There are many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of customer on whether, what, how, and for whom to purchase the CAR. Therefore, research is required to measure present consumer buying behavior at the purchase of TATA cars. So the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the cars.

OBJECTIVES OF RESEARCH
The research objective is a statement, in as precise terminology as possible, of what information is needed. The research objective should be framed so that obtaining the information will ensure that the research purpose is satisfied. The research objectives for the project undertaken can be defined as follows: To determine the demographic variables of the customers of different brands of cars. Examine the customer perception about the cars. To judge the satisfaction level of car owners of different brands. 37

The research tracks responses at following two layers 1. Product related parameters 2. Dealer related parameters To analyze the psychographic variables of the customers of different brand of the cars. To know the market position of Tata automobiles in the market. To know the consumer behavior for purchase of four wheeler.

SCOPE OF STUDY
Defining the scope of the research or the research boundaries ensures the desired precision or accuracy of the result. The researchers responsibility is to restate the initial variables associated with the decision problem, that is convert the research problem, in the form of one or more key question formats How What Where When Why

1) The main scope of the study is depends upon the consumers response. 2) It also analysis the benefits accruing to the company as a result of those service. 3) This study has been made to find the level of satisfaction the customer has regarding the service provider by car place.

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LIMITATIONS OF STUDY
All the research projects are hindered in their smooth flow by some unforeseen problems. The problems arise in the form of constraints by budget, time and scope of the study. The current project was also faced by certain problem. Some of the problems faced in the course of the research are as follows:

A strong unwillingness on the part of the owners of various cars, to participate and aid the research.

The boredom and wavering concentration that set in among the respondents while answering the long questionnaire: thus in turn led to the difficulty of preventing incomplete questionnaires.

Sampling error: the research include a sample size of 40 customers which is not enough to determine the brand perception of the consumers for buying the cars. Since its not a census survey there is always a chance of error while extrapolating the results of a sample study over the population especially in those researches where the qualitative aspects are concerned. So its always doubtful to map the qualitative aspects using a quantitative measure.

During survey some respondents may not give answer in proper manner. The study was limited to the geographical region of Lucknow.

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RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception through the final analysis, recommendations and ultimate actions. The research process provides a systematic, planned approach to the research project and ensures that all aspects of the research project are consistent with each other. Research studies evolve through a series of steps, each representing the answer to a key question.

Research Project Steps

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INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results.

RESEARCH DESIGN
I propose to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research. This stage shall help me to restrict and select only the important question and issue, which inhabit growth and segmentation in the industry. The various tasks that I have undertaken in the research design process are :

Defining the information need Design the exploratory, descriptive and causal research.

RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis It has a logical and hierarchical ordering: Determination of information research problem. Development of appropriate research design. Execution of research design. Communication of results.

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Each step is viewed as a separate process that includes a combination of task, step and specific procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and ongoing.

EXPLORATORY RESEARCH
The method I used for exploratory research was

Primary Data Secondary data

PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data which entails the use of data gathered by someone other than the researcher information that is obtained directly from firsthand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA
Information that already exists somewhere, have been collected for another purpose. Sources include magazines, census reports, trade publications, and subscription services. Data that have been already collected and published for another research project (other than the one at hand). There are two types of secondary data: internal and external secondary data. Information 42

compiled inside or outside the organization for some purpose other than the current investigation. Data that have already been collected for some purpose other than the current study. Researching information which has already been published. Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research conducted by someone else, such as a market research company or the U.S. government. Published, already available data that comes from pre-existing sets of information, like medical records, vital statistics, prior research studies and archival data. Secondary source of data used consists of magazines and websites. My proposal is to first conduct a intensive secondary research to understand the full impact and implication of the industry, to review and critique the industry norms and reports, on which certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCH
STEPS in the descriptive research: Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling Plan. Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions 43

DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 min. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the car company etc. The data was collected by interacting with 60 respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of students, business men, professionals etc. the required information was collected by directly interacting with these respondents. Respondents: Owners of Santro 9 Owners of Zen estilo 8 Owners of Indica 18 Owners of other cars 5

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DETERMINATION OF THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclusions about. In an ideal situation, the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended. I have selected the sample trough convenient Simple Random Sampling.

SAMPLE SIZE
This involves figuring out how many samples one need. The numbers of samples you need are affected by the following factors: Project goals How you plan to analyze your data 45

How variable your data are or likely to be How precisely you want to measure change or trend The number of years over which you want to detect a trend How many times a year you will sample each point

How much money and manpower you have

I have targeted 60 people in the age group above 21 years for the purpose of the research. The sample size is influenced by the target population. The target population represents the Lucknow regions. The people were from different professional backgrounds.

SAMPLING TECHNIQUE
Simple random sampling technique has been used to select the sample. A simple random sample is a group of subjects (a sample) chosen from a larger group (a population). Each subject from the population is chosen randomly and entirely by chance, such that each subject has the same probability of being chosen at any stage during the sampling process. This process and technique is known as Simple Random Sampling, and should not be confused with Random Sampling.

ERRORS IN THE STUDY Interviewer error

There is interviewer bias in the questionnaire method. Open-ended questions can be biased by the interviewers views or probing, as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer revels to the respondent during the interview can greatly affect their level of interest and willingness to answer openly. As 46

interviewers probing and clarifications maximize respondent understanding and yield complete answers, these advantages are offset by the problems of prestige seeking, social desirability and courtesy biases.

Questionnaire error
The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated. The questions have to be worded carefully so that the questions are not loaded and does not lead to a bias in the respondents mind.

Respondent error
The respondents selected to be interviewed were not always available and willing to co operate also in most cases the respondents were found to not have the knowledge, opinion, attitudes or facts required additionally uninformed response errors and response styles also led to survey error.

Sampling error
We have taken the sample size of 60, which cannot determine the buying behavior of the total population. The sample has been drawn from only Lucknow region.

Research Design
Research design is a conceptual structure within which research is conducted. A research design is the detailed blueprint used to guide a research study towards its objective. It is a series of advanced decision taken together comprising a master plan or a model for conducting the research in consonance with the research objectives. Research design is needed because it facilitates the smooth sailing of the various research operations, thereby making research as efficient as possible yielding maximum information with the minimum effort, time and money. 47

DATA ANALYSIS AND INTERPRETATION

Q1) what do you own?

A) car B) Two Wheeler C) Nothing

From that it was found that:-

20 people owned a car 15 owned two wheelers and 5 dont nothing

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Q2) which car do you own?

a) zen estilo b) santro Xing or i10 c) indica d) others

14 12 10 8 6 4 2 0 estilo indica santro,i10 others

From that it was found that:-

9 people owns zen estilo 14people owns indica variants 12 people owns santro, i10 5 people owns others
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Q3) Are you satisfied with it?

A) Yes b) No

25

20

15

10

0 yes no

From that it was found that:-

25 were satisfied and 15 were not.

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(4) Car customers

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Q5) How much do you spend on maintenance on a monthly basis?

a) <2000 b) 2000-4000 c) >4000

From that it was found that:-

25 %spends below 2000 10% spends between 2000-4000 5 %spends above 4000

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(6) Sample of 30 customers, according to their income.

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Q7)Name the car that comes first in your mind when you think of small segment car in India?

12 10 8 6 4 2 0 estilo,wagon R santro,i10

indica others

From that it was found that:-

8 said zen estilo, wagon R 9 said santro, i10 11said Indica 12 said others

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Q8)Out of these which you will see first when you will buy a car?

12 10 8 6 4 2 0 cost&perf. perf.&style style cost

From that it was found that:-

12 people consider cost & perf. Before purchasing a car. 9 people consider perf. & style before purchasing a car. 8 people consider style before purchasing a car. 11 people consider cost before purchasing a car.

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(9)Are you planning to buy a car within next session?

1year

1 month

10

15

20

25

30

From that it was found that:-

29 people want to purchase within 1 year 11 people want to purchase in 1 month

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(10)Factors affecting buying of customers Power steering Mileage Price Others 7 15 10 8

16 14 12 10 8 6 4 2 0 power steeering mileage price others

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FINDINGS
TATA MOTORS is number three in passenger car market after maruti-suzuki & Hyundai. Majority of the customers see TATA MOTORS with savings. Most of the customers spend large sum of money. Out of the samples, people are highly convinced that TATA MOTORS will yield them better results. As the sales of Maruti grows as well as Hyundais santro xing, i10 is still doing well in mid size and small size segment so the INDICA may be a good options for the company in this term for sustaining sales in long run as well as in the current situations.

Product will have a gradual progress. Because most industries would wait for the response
about the product from other Company.

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SUGGESTIONS
Based on the findings from the analysis the following suggestions could be made: Demo of the product should be made available to Customers, since most of the purchase decisions are based on it. Technical details should be made available to the customers in the most accurate numerical form. The Indica has remained a bestseller throughout in the industry figuring in the top 3 selling list of cars for most of the years. The distribution channel should be more efficient to cater the demand during peak seasons like during dussehra, diwali etc. The city is mostly dominated by the working class like people employed in high court, AG office( accountant general office) and government school employees who this year are getting more pay due to the recommendations made by the sixth pay commission so , the sales for mid size car can be enhanced in this scenario.

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SWOT ANALYSIS - TATA MOTORS LIMITED

SWOT Strengths, Weaknesses, Opportunities, Threat

The internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.

The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a program me of intensive management development in place in order to establish its leaders for tomorrow

The company has had a successful alliance with Italian mass producer Fiat since 2007.This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2008, and the companies have an agreement to build a pick-up targeted at Central and South America.

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The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India?

One weakness which is often not recognized is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover.

The CV segment is becoming highly competitive by new player like Volvo, and rival M&M are coming with new products to cater the TATA in the market as the rural area has given thumps up to M&M during this year.

The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social

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Responsibility (CSR) committee to address potential strategies that will make operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano!

In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments.

Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production

Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalizes and buys into other brands this problem could be alleviated.

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Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra, Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminum is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

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Future of the Automobile in the Economy

64

Survey conducted by (C.S.O) Central statistical organization

US based consultancy, keystone predicts that India will become worlds third largest automobile market by 2030. Overall size expected to exceed 20 million with compounded annual growth rate of over 12%. TATA Motorss June 2009 DOMESTIC SALES at 43,244 nos. Tata Motors total sales (including exports) of Tata commercial and passenger Vehicles were 45,399 vehicles, a decline of 4% over 47,245 vehicles sold in June last year. The companys domestic sales of Tata commercial and passenger vehicles for the month of June 2009 were 43,244 nos., a 1% decline over 43,814 nos. sold in June last year. Cumulative sales (including exports) for the company for the quarter at 123,113 nos., declined by 7%, compared to 131,733 nos. sold last year.

Commercial Vehicles
The Companys sales of commercial vehicles in June 2009 in the domestic market were 26,205 nos., a 2% decline compared to 26,797 vehicles sold in June last year. LCV sales were 16,256 nos., a growth of 17% over June 2008, while M&HCV sales stood at 9,949 nos., a decline of 23% over June 2008 but an increase of 15% over May 2009. Cumulative sales of commercial vehicles in the domestic market for the first quarter of the fiscal were 72,056 nos., a growth of 1% over last year. Cumulative M&HCV sales stood at 26,626 nos., a decline of 26% over last year, while LCV sales for the quarter were 45,430 nos., a growth of 27% over last year.

Passenger Vehicles
The passenger vehicle business reported a total sale and distribution off take of 19,513 nos. (17,039 Tata + 2,474 Fiat) in the domestic market in June 2009, an 11% increase compared

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to 17,567 nos. (17,017 Tata + 550 Fiat) in June 2008, and an increase of 17.8% over 16,563 nos. (15,388 Tata + 1,175 Fiat) of May 2009. The Indica range grew for the fifth consecutive month at sales of 10,210 nos. -- a growth of 19% over June 2008. The Indigo family recorded sales of 3,522 nos., a 26% decline over June 2008, but a growth of 24.4% over 2,832 nos. of May 2009. The Sumo/Safari range accounted for sales of 3,307 nos., a decline of 11% compared to June 2008, but a growth of 29.7% over 2,550 nos. of May 2009.

Exports
The Companys sales from exports at 2,155 vehicles in June 2009 declined by 37% compared to 3,431 vehicles in June 2008. The cumulative sales from exports for the fiscal at 5,220 nos. declined by 43% over 9,159 nos. in the same period last year.

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Conclusion
To conclude, the results show that the companies are playing on the peripheral cues to maintain their Total Relationship Management and connect to the customers both present and potential. The companies are operating in a highly aggressive and competitive global market place and this climate has led to the emphasis on quality in all aspects. TQM focuses on integration and coordination as well as the continuous improvement of all activities and processes. Total Relationship Management (TRM) is a very recent marketing strategy and philosophy. It focuses on and is concerned with all integrated internal and external activities within and between the organizations. These two terms are integrated by the manufacturers by building good quality products and building good relationship with dealers and enhancing service levels. However, when studied from the point of view of a customer there seems to be no major difference among the car brands in a segment as far as performance is concerned. The brand perception is dependant mostly on the peripheral cues depending upon the nature and quality of the service provided along with the pricing, maintenance, availability of spare parts and related issues. So, a question arises here that is this the end of road for the branding of cars? Has the commoditization of cars has started and its time that manufacturers must read the writing on the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of the customers is changing according to it. So this might be the reason that despite Verna faring so high on the performance parameters still lags on the account of converted sales. Dealers, as per the study findings, play a very important role in building up the brand perception of the cars. Since dealers are the connecting link between the customers and the manufacturers

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thus becoming the most important link in joining the company to its customers as he is the person who will sell the product, will deliver it and will keep on providing the after sales services to the customers as and when required. So, it becomes necessary automatically to study dealer as a part of customers satisfaction journey with the product called car! Their proximity to the customers, the service provided by them and the relationship maintained by them with the customers helps the car companies to establish and reinstate the brand personality communicated by them to the customers. Finally the major point that emerges out of this detailed study is a caution for the car companies. It says that there is no doubt that Indian car market may be growing with a double digit figure still the car companies have a long way to travel to convince their customers about the brand personality of their cars and how it suits the prospective buyers. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Cars just like clothes and accessories suit the style and persona of a person and since all cars will become commodity someday the key to sell and excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the cars coz ultimately only that car survives which sells!

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BIBLIOGRAPHY
Books
1. Kotler, Philip, Keller, Kevin Lane, Marketing Management, Pearson Education Ltd, New Delhi, Thirteenth Edition, 2009. 2. Kothari, C.R., Research Methodology, New Age International (P) Ltd. Publishers, New Delhi, Second Revised Edition, 2008.

Magazines
1. Saxena, Manoj, The ultimate battle for mid size crown, Auto car India, Delhi, August, 2011, p. 31. 2. Robert V. Roosa, Price, verdicts and ratings for every new car, Auto car India, Delhi, August, 2011, p. 270-285. 3. Kumar V. Rai, Show Room Hatchbacks, Auto India, Delhi, August, 2011, p. 106.

Internet
1. Tata Motors' Official Website 2. 3. 4. Wiki - Tata Motors Ltd htttp://www.moneycontrol/com/tata- group/Tata motors http://www.yahoofinance.com/tatamotors

5. http://www.carwale.com/research/cars

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ANNEXURE
Questionnaire

For Customers
Q1. Why you bought your present car? Please rank from the highest order of preference 1. Increase in disposable income 2. Better safety at roads 3. Family needs 4. Increase in family size 5. Suits your lifestyle and personality

Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference) 1. Affordable price 2. Technical superiority over competition 3. Comfort 4. Manufacturers image 5. Value for money 6. Safety 7. After sale services

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Product Satisfaction Level Q3. Please rate your existing car in terms of understated Interior Design features on a scale of 1 to 5 where 1 2 3 4 5 Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied 1 2 3 4 5

Interior Type Seats design Leg Room Dash Board Interior Colour Music System Adjustable Front seat Headrest

Q4. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5 Safety Parameters Crossbar under Dashboard Air Bags Anti Lock Breaking System Aerodynamic Shape Intensity of front lights 1 2 3 4 5

Q5. Please rate your existing car in terms of following parameters

Parameter Fuel Consumption Mileage ( Km/ltr) Pick Up Stability at higher speed Top speed

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Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where 1 Highly Satisfied 2 Satisfied 3 Neutral 4 Dissatisfied 5 Highly Dissatisfied 1 Distance ( Proximity) Advertisements (Promotions) Technical Facilities Cost of Service Availability of Spares Information Provided Service Time Charges Staff Car Handling ( Delivery & service) Assured Customer Transactions Ambience of Service Center Finance ( Credit) Schemes Q2. How do you rate the brand image of your car? 1 Very Low 2 3 4 Very High 5 2 3 4 5

Q3. Will you recommend your car to your friends? Yes No

Q4. If yes, will you buy your new car in the Same segment , same manufacturer Same segment, different manufacturer Upper segment, same manufacturer Upper segment, different manufacturer 73

Age group:

<21 36-55

21-35 >55

What is your monthly Family income? Less than 50000 Rs 50,000 Rs 1, 00,000 Rs 1, 00,001 Rs 2, 00,000 More than Rs 2, 00,001

Number of cars owned:

Present Car (s) owned:

Name: Phone No:

Sex:

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List of Abbreviations
CAGR CEO CSR GDP GM IT LCV M&M OEM R&D SAARC SWOT TELCO TQM TRM UNIDO USA : Compound Annual Growth Rate : Chief Executive Officer : Corporate Social Responsibility : Gross Domestic Product : General Motors : Information Technology : Light Commercial Vehicles : Mahindra and Mahindra : Original Equipment Manufacturers : Research and Development : South Asian Association for Regional cooperation : Strength Weakness Opportunity Threat : TATA Engineering and Locomotive Company : Total Quality Management : Total Relations Management : United Nations Industrial development Organization : United States of America

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