Bc Report_grp 13

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BUSINESS COMMUNICATION

A CONSUMER BEHAVIOUR REPORT ON AUTOMOBILE INDUSTRY(TATA MOTORS)

SECTION C GROUP C- 13 MBA 1

S. NO. ROLL NO. NAME

1 11202182 VIKRAM KUMAR

2 11202183 SWATI SAMARPITA

3 11202184 SAMBIT MOHAPATRA

4 11202185 MANASWANI ACHARYA

Faculty Guide:

Prof. Surbhi Kapur

School of Management, KIIT University


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DECLARATION

I hereby declare that the project report titled A Consumer Behaviour Report on

Automobile Industry(Tata Motors) is my own work and has been carried out under the

guidance of Prof. Surya Narayana Mishra, Marketing Department in KIIT School of

Management, Bhubaneswar and Dr. Surbhi Kapur, KIIT School of Management,

Bhubaneswar.

All care has been taken to keep this report flawless and I sincerely regret any unintended

discrepancies in this report.

Thank You,

Vikram Kumar (11202182)

Swati Samarpita (11202183)

Sambit Mahapatra(11202184)

Manaswini Acharya(11202185)


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ACKNOWLEDGEMENT

The research on A Project Report on Automobile Industry (Tata Motors) has been

given to me as part of the curriculum during Master of business Administration.We have tried our best to present this information as clearly as possible using basic terms

that we hope will be comprehended by the widest spectrum of researchers, analysts and

students for further studies.

We have completed this project under the guidance and supervision of PROF.SURBHI KAPUR and my project guide Prof. Surya Narayana Mishra, MarketingDepartment in KIIT School of Management. We will be failed in my duty if we do notacknowledge the esteemed scholarly guidance, assistance and knowledge we have receivedfrom them towards fruitful and timely completion of this work.

Mere acknowledgement may not redeem the debt we owe to my parents for their

direct/indirect support during the entire course of this project.


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TABLE OF CONTENTS

1.EXECUTIVE SUMMARY................................................................................................................................ 5

2.INTRODUCTION .............................................................................................................................................. 5

3.OBJECTIVES....................................................................................................................................................... 7

UNCOVERING THE CONCEPT BEHIND TATA MOTORS SUCCESS THROUGH

INNOVATION ....................................................................................................................................... 7

ANALYZING TATA MOTORS SUCCESS IN ECONOMIC AUTOMOBILE SEGMENT AND

ITS SUBSEQUENT MARKETING STRATERGIES ........................................................................ 7

4. THEORETICAL PERSPECTIVE ....................................................Error! Bookmark not defined.

COMPANY PROFILE OF TATA MOTORS ..................................Error! Bookmark not defined.

5.METHODOLOGY.............................................................................................................................................. 9

RESEARCH APPROACH ................................................................ Error! Bookmark not defined.

PRIMARY DATA SOURCES ........................................................................................................................ 9

SECONDARY SOURCES ............................................................................................................................... 9

6.RESEARCH DESIGN ..................................................................................................................................... 10

SURVEY ............................................................................................................................................... 10

SECONDARY DATA STUDIES ........................................................................................................ 10OBSERVATION TECHNIQUES ......................................................................................................... 10

7.ANALYSIS AND INTERPRETATION ..................................................................................................... 10

8.CONCLUSION.................................................................................................................................................. 12

9.LIMITATIONS ................................................................................................................................................ 13

10.RECOMMENDATIONS & SUGGESTIONS ......................................................................................... 13

11.BIBLIOGRAPHY.......................................................................................................................................... 14

12.ANNEXURE ................................................................................................................................................... 15

QUESTIONNAIRE ........................................................................................................................... 15


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EXECUTIVE SUMMARY

The main objective of the project is to get the full knowledge of Tata Motors and what are

they doing to get the customer loyalty, to maintain their market. This is also to find thepreferences of customer and there market knowledge and product information,information about the presence of the rivals of Tata and all the other options they have inthe market.

A questionnaire was prepared and there were 40 respondents. The market research workwas divided into two stages i.e. to collect & analyze the various the factors that would helpin knowing the consumer buying behavior.

INTRODUCTION

The Automobile Industry came of age with Henry Ford in 1914 for the bulk production ofcars. This lead to the development of the industry and it first began in the assembly lines ofhis car factory. The several methods adopted by Ford, made the new invention (that is, thecar) popular amongst the rich as well as the masses.

According the History of Automobile Industry, US dominated the automobile marketsaround the globe with no notable competitors. However, after the end of the Second WorldWar in 1945, the Automobile Industry of other technologically advanced nations such asJapan and certain European nations gained momentum and within a very short period,beginning in the early 1980s, the U.S Automobile Industry was flooded with foreignautomobile companies, especially those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed

countries the Automobile Industries are stagnating as a result of the drooping car markets,whereas the Automobile Industry in the developing nations such as India and Brazil havebeen consistently registering higher growth rates every passing year for their flourishingdomestic automobile markets.


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Introduction -Automobile Market in India

The automobile industry in India, the tenth largest in the world with an annual productionof approximately 2 million units, is expected to become one of the major global automotiveindustries in the coming years. India auto market is a promising industrial sector that is

growing immensely every passing year. Passenger cars are referred to, through use of wordhas emerged as one of the fastest growing in the world. The number of cars solddomestically is projected to double by 2012, and domestic production is skyrocketing asforeign makers are setting up their own production plants in India. The governments 10-year plan aims to create a $145 billion auto industry by 2016.

Auto industry in India mainly comprises of small car section, which enjoys nearly a 2/3rdmarket share of entire market for autos in India. In this respect, Indian markets are largestin world for small cars, behind Japan.

Indian passenger car market which ranks amongst largest in world is poised to becomeeven larger and enter top five passenger car markets in world in next decade.

Segmentation of market share of automobile industry in IndiaPassenger Vehicle: 15.96%Commercial Vehicle: 3.95%Three wheelers: 3.60%Two wheelers: 76.49%


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Tata Motors is the largest automobile manufacturing companies in India. Established wayback in 1945 Tata Motors is a multinational automobile company with its headquarters inMumbai. Previously known as Telco TATA Engineering and Locomotive Company) TataMotors belongs to Tata Group. This company manufactures compact medium sized utilityvehicles. Over the last few decades it has stood as the undisputed leader in the commercial

vehicles segment. It is also the third largest producer of passenger cars in India. Thisautomobile company in India is listed on both the Bombay Stock Exchange and the NewYork Stock Exchange. The revenues earned by Tata Motors in 2010 accounted to $20.572billion. Some of the well known cars manufactured by Tata Motors are: Tata Indigo, TataIndica, Tata Sumo Tata Indigo Marina and Tata safari.

OBJECTIVES

UNCOVERING THE CONCEPT BEHIND TATA MOTORS SUCCESS THROUGHINNOVATION

Tata motors are well established Indian automobile company with a history of more 60 years. With theirwide range of product line, they keep the top position in the car industry in India. Also they are pioneer inthe truck manufacturing and bus manufacturing in the world. They had revenue of $20 bn in the lastfinancial year 2010-11 with twenty five thousand employees working all around the world. With theirstrong leadership and innovation in the products they made good business all over the worlds.

Analyzing TATA motors innovation strategy it was found that they followed three different strategies forinnovating their products. It can be used very efficiently for any industry. The tree strategies are: 1. Openinnovation (TATA NANO) 2. Innovation through acquisition (Jaguar & Daewoo) 3. Innovation for massmarkets in emerging economies

TATA`S SUCCESS IN THE ECONOMIC AUTOMOBILE SEGMENT AND SUBSEQUENTMARKETING STRATEGIES

Tata concentrate more into economical buyers from the Indian society. Because of this reason theirinnovation strategies always point into cost reduction and economical cars. With a huge population above1Bn, there is considerable amount of potential customers in this sector. The main factors affecting thesecustomers are fuel efficiency and low-price of the car. Aiming this sector, Tatas most success andinnovative strategy was Tata Nano car.


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The Nano concept of TATA MOTORS made home in the minds of the consumers. More orless everybody felt that this CAR was mainly for the common man and termed it aspeoples carwith cost of 1Lakh Indian rupee (1300 GBP).This priced compared as double the price ofa bike in Indian market. So this attracted the middle class society who used bikes to think about buying acar with his budget money. So that Nano named a people car with this reason. With its four wheels and

the protecting body, this disruptive innovation opened up a totally new world of safety and comfort forthe Indians that had driven motor bikes and scooters so far .

COMPANY PROFILE OF TATA MOTORS

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India.

The motor group was established in 1945 as part of the larger Tata Group. They have longbeen known for their commercial vehicles and in the past ten years entered into thepassenger car market. Currently, Tata Motors has a line of five passenger vehicles and alarge line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, andbuses. Both product lines of the Tata Motors group have seen success, but much of this hasbeen built upon the more deeply established commercial vehicle product line.

Tata Motors commercial line has been established for several years in many marketsegments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia.Tata Motors has expanded their business and market share around the world through aseries of acquisitions. In 2004, they acquired Daewoo commercial vehicle Company in

South Korea which was South Koreas second largest truck manufacturer. This acquisitiongave Tata Motors a significant presence in the Korean market. They have also entered intojoint ventures with companies such as Thonburi Automotive in 2006, which allowed themto manufacture and market pickup trucks in Thailand. We think it makes sense for Tata toexpand through acquisition (as it did in tea and steel) than spend a decade to build thebusiness (Lehman Brothers). The commercial vehicle area of the business has certainlybeen how Tata Motors have built their reputation, with commercial vehicles accounting for80-85% of company profits. They are beginning to employ a similar technique as they nowexpand into the passenger car business.

Tata Motors have been making global headlines in the auto industry lately; the largest newsbeing their acquisition of Jaguar and Land Rover from Ford.Tata paid 2.3 billion do llars toFord for the two brands that cost Ford 5.3 billion (Carty, USA Today). This is a major stepfor the company because it catapults them into the luxury car business which they are notknown for at this time. Tata, like many new businesses it acquires, is allowing this newsegment of the business to be run by previous management since they have moreexperience in the luxury automotive business. Tata will give us some space. They want usto run our business, be a premium British car company (Mike ODriscoll, managing


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director of Jaguar). This is yet another large acquisition for the Tata Motors group andcould create great success for the company in the near future

Company Type - Public Fiscal Year- End March

2010 Sales (mil.)- 13,649.7 1-Year Sales Growth- 48.5%

2010 Net Income (mil.)- 560.4 2010 Employees -50,000

1-Year Employee Growth - (24.4%)

RESEARCH METHODOLOGY

The research is primarily both exploratory and descriptive in nature. The sources ofinformation are both primary and secondary. A well structured questionnaire wasprepared for the primary research and personal interviews were conducted to collect theresponses of the target population. The secondary data has been taken by referring tovarious magazines, newspapers, internal sources and internet to get the figures requiredfor the research purposes.

PRIMARY DATA SOURCES

The primary sources of data collection were through questioning to the workingprofessionals and household members. We also tried to cover some of the students.Questionnaires helped us to know about their consumption pattern of different detergents.

SECONDARY DATA SOURCES

Apart from the primary data sources, we referred some of the secondary sources and acomprehensive report was generated. The sources include internet, friends working inother companies, faculty members, books. It is the data which has already been collected bysomeone or an organization for some other purpose or research study.

Some of the secondary data sources include:

Books & Journals Internet sources


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RESEARCH DESIGN

SURVEY

This is common method of generating primary data. Here we choose to contact therespondents using a questionnaire that comprises with the question that needed to beanswered by the respondent which would help us to analyze.

SECONDARY DATA STUDIES

As information here cannot be interchangeable, but helps in collecting information aboutthe presence of automobile industry

OBSERVATION TECHNIQUES

Here the objective is to know how the automobile industry works in peoples mind,particularly Tata motors. As using the survey & our secondary data it records theperception of people towards TATA MOTORS.

ANALYSIS AND INTERPRETATION

WHO ACTUALLY BUYS THE PRODUCT IN THE FAMILY?- WORKING WOMEN- YOUTH (MEN AND WOMEN)- FEW MEN

0 20 40 60 80

WORKING MEN

WORKIN G WOMEN

OTHERS

POPULATION %

POPULATION %


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WHO MAKES THE DECISION FOR THE PURCHASE?- SELF DECISION IS MADE- HEAD OF THE FAMILY

WHAT INFLUENCES THE DECISION FOR THE PURCHASE?- THE ECONOMIC CLASS CONCEPT OF TATA- ADVERTISEMENTS &FEEDBACK FORM EXISTING USERS- FEATURES,LOOK,EFFICEINCY & ETHICAL VALUE OF THE

COMPANY

WHERE IS INFORMATION SEARCHED FOR?- INFORMATION GATHERED IS BASED ON FEEDBACK AND

ADVERTISEMENTS

WHO ARE THE COMPITITORS?-HYUNDAI MOTORS-MARUTI-OTHERS

0 10 20 30 40 50

ECONOMIC CONCEPT

ADVERTISEMENT & FEEDBACK

FEATURES,LOOK & ETHICAL VALUE

PERCENTAGE

PERCENTAGE


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WHAT IS THE EVALUATION PROCEDURE?- TO EVALUATE THE OPTIONS AVAILABLE IN THE ECONOMIC

AUTOMOBILE SEGMENT, ALSO TO CONTEST THAT TATACARS ARE MEANT FOR THE COMMON MAN ALONG WITH TOPCREAM OF THE SOCIETY.

WHAT IS THE LEVEL OF INVOLVEMENT OF THE CONSUMER WITH THE PRODUCTAND THE PURCHASE PROCESS?

- EXCELLENT

CONCLUSION

During the project we tried our best to understand each & every aspect which wouldenhance or affect the business of Automobile industry.

We come up with the finding that TATA MOTORS as a whole has been able to retain the asubstantial market share and its growth has also been substantial as compared to a decadeback. TATA MOTORS is embedded in the consumer minds as the peoples Brand, and it hassuccessfully expanded.


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LIMITATIONS

1. Limited Time: The time available to conduct the study was only 15 days. It being a wide

topic vast research is required.

2. Limited Resources: Limited resources are available to collect the information.

3. Research was limited within Bhubaneswar & its adjacent places.

4. People were not providing real information/data some times as per the questionnaire(reluctant to give information), which can possibly can leads outputs which may not bereal/ appropriate.

RECOMMENDATIONS & SUGGESTIONS

After getting observations we would like to recommend some important points, uponwhich TATA MOTORS should focus and try to grow its business by tapping the marketthroughmaking new customers. Some of the recommendations are as follow:-

Mixing open innovation model with sustainability. the next generation cars areaiming for zero emission and alternative fuels. this can be active using this concept

mixing

Mixing TATA MOTORA(JLR) workforce with Tata Nano will increase good qualityproduct with in the economic range of cars

Expansion of TATA MOTORS(JLR) to Asian countries to increase the companybrand name and can compete with others

we would like to suggest is TATA MOTORS should focus more on its promotionalforces, so that it would be able to convey the features to the common people. Once

the features will be exposed then only it can make new customers.


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BIBLIOGRAPHY

BOOKS REFERRED

1. Philip Kotler, Kevin lane keller, Abraham Koshy & Mithileshwar Jha, MarketingManagement 13TH Edition

2. William G. Zikmund , Business Research Method 7th Edition3. Richard I. Levin and David S. Rubin, Statistics for Management 7th edition

REPORTS

1. Report of TATA MOTORS 2010.2. Market Research Project on Automobile Industry.

WEBSITES

1. www.indiacatalog.com

2. www.tatamotors.com

3. www.google.com

4. www.wikipedia.org

5.http://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cms
http://c/Users/kiit/Downloads/www.indiacatalog.comhttp://www.google.com/http://www.wikipedia.org/http://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://www.wikipedia.org/http://www.google.com/http://c/Users/kiit/Downloads/www.indiacatalog.com


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ANNEXURE

QUESTIONNAIRE

WHICH MODEL OF CAR DO YOU HAVE? WHERE DID YOU HEAR ABOUT THIS CAR? HAVE YOU OWNED ANY MODELS OF TATA CARS

PREVIOUSLY?

WHAT WERE OTHER OPTIONS AVAILABLE? WHY HAVE YOU CHOSEN YOUR current model? ANY EXPECTATTIONS FROM YOUR CURRENT

BRAND?

ANY COMPLAINTS WITH YOUR CURRENT BRAND? WOULD YOU LIKE TO SWITCH OVER TO ANOTHER

BRAND?

WOULD YOU RECOMMEND YOUR BRAND TOANYONE?

WHAT ARE THE FEATURES YOU WANT IN A CAR? DOES THE ADVERTISEMENTS & FEEDBACK FROM

USERS INFLUENCE YOU TO BUY a CAR? WHY?

RATE YOUR CAR ON VALUE FOR MONEY, FEATURES,LOOK, AFTER SALES SERVICE & EFFICIENCY?

RATE YOUR CURRENT BRAND OUT OF 10

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