revised customer strategy by tata ,nokia,yamaha

7/27/2019 revised customer strategy by tata ,nokia,yamaha

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Tata motors limited (Tata Nano)

Industry overview

The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates.India's passenger car and commercial vehicle manufacturing industry is the sixth largest inthe world, with an annual production of more than 3.9 million units in 2011. According torecent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy,Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around threemillion units in the course of 2011-12. In 2009, India emerged as Asia's fourth largestexporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beatThailand to become Asia's third largest exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotivevehicles were produced in India in 2010 (an increase of 33.9%), making the country thesecond (after China) fastest growing automobile market in the world in that year. Accordingto the Society of Indian Automobile Manufacturers, annual vehicle sales are projected toincrease to 4 million by 2015, no longer 5 million as previously projected.

The production of passenger vehicles in India was recorded at 3.23 million in 2012 -13 and isexpected to grow at a compound annual growth rate (CAGR) of 13 per cent during 2012-2021, as per data published by Automotive Component Manufacturers Association of India

(ACMA).

The majority of India's car manufacturing industry is based around three clusters in the south,west and north. The southern cluster consisting of Chennai is the biggest with 35% of therevenue share. The western hub near Mumbai and Pune contributes to 33% of the market andthe northern cluster around the National Capital Region contributes 32% .Chennai, with theIndia operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW ,HindustanMotors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by2014. Chennai accounts for 60% of the country's automotive exports.Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is thewestern cluster with companies like General Motors, Volkswagen, Skoda, Mahindra andMahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motorshaving assembly plants in the area. Nashik has a major base of Mahindra & Mahindra with a

UV assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of thewestern cluster. Another emerging cluster is in the state of Gujarat with manufacturingfacility of General Motors in Halol and further planned for Tata Nano at their plantin Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up inGujarat. Kolkata with Hindustan Motors ,Noida with Honda and Bangalore with Toyota are

some of the other automotive manufacturing regions around the country.
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India is emerging as an export hub for sports utility vehicles (SUVs). Global automobilemajors are looking to leverage India's cost-competitive manufacturing practices and areassessing opportunities to export SUVs to Europe, South Africa and Southeast Asia too. Indiais also one of the key markets for hybrid and electric medium-heavy-duty trucks and buses.

Ford Motor Company is staking big on Asia-Pacific (APAC) markets, especially India andChina. "Ford will export Figo and EcoSport models out of India. The Indian plants wouldsupport the market here, as well as other global markets," said Mr Alan Mulally, Chief Executive Officer, Ford.

In North America, the automobile production market is dominated by what's known asthe Big Three :

General Motors - Produces Chevrolet, Pontiac, Buick and Cadillac, among others. Chrysler - Chrysler, Jeep and Dodge. Ford Motor Co - Ford, Lincoln and Volvo.

Two of the largest foreign car manufacturers are:

Toyota Motor Co Honda Motor Co

Company overview

Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles ineach segment, and among the top in passenger vehicles with winning products in thecompact, midsize car and utility vehicle segments. It is also the world's fifth largest truck manufacturer and fourth largest bus manufacturer.

The Tata Motors Group's over 60,000 employees are guided by the mission "to be passionatein anticipating and providing the best vehicles and experiences that excite our customersglobally."

Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company'smanufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial jointventure with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat andTata cars and Fiat powertrains. The company's dealership, sales, services and spare partsnetwork comprises over 6,600 touch points.

Tata Motors, also listed in the New York Stock Exchange (September 2004), has emerged asan international automobile company. Through subsidiaries and associate companies, Tata
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Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia.Among them is Jaguar Land Rover, acquired in 2008. In 2004, it acquired the DaewooCommercial Vehicles Company, South Korea's second largest truck maker. The rechristenedTata Daewoo Commercial Vehicles Company has launched several new products in the

Korean market, while also exporting these products to several international markets. Todaytwo-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 andcoach manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is

being expanded in other markets. In 2006, Tata Motors formed a 51:49 joint venture with theBrazil-based, Marcopolo, a global leader in body-building for buses and coaches tomanufacture fully-built buses and coaches for India - the plant is located in Dharwad. In2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly PlantCompany of Thailand to manufacture and market the company's pickup vehicles in Thailand,and entered the market in 2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' jointventure with Tata Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn,north of Pretoria. The plant can assemble, semi knocked down (SKD) kits, light, medium andheavy commercial vehicles ranging from 4 tonnes to 50 tonnes.

Tata Motors is also expanding its international footprint, established through exports since1961. The company's commercial and passenger vehicles are already being marketed inseveral countries in Europe, Africa, the Middle East, South East Asia, South Asia, SouthAmerica, CIS and Russia. It has franchisee/joint venture assembly operations in Bangladesh,Ukraine, and Senegal.

The foundation of the company's growth over the last 68 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desiredofferings through leading edge R&D. With over 4,500 engineers, scientists and techniciansthe company's Engineering Research Centre, established in 1966, has enabled pioneeringtechnologies and products. The company today has R&D centres in Pune, Jamshedpur,Lucknow, Dharwad in India, and in South Korea, Italy, Spain, and the UK.

Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the TataIndica, India's first fully indigenous passenger car.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and Sri Lanka. A development, which signifies a first for the global automobileindustry, the Nano brings the joy of a car within the reach of thousands of families.

Tata Motors is equally focussed on environment-friendly technologies in emissions andalternative fuels. It has developed electric and hybrid vehicles both for personal and publictransportation. It has also been implementing several environment-friendly technologies inmanufacturing processes, significantly enhancing resource conservation.


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Through its subsidiaries, the company is engaged in engineering and automotive solutions,automotive vehicle components manufacturing and supply chain activities, vehicle financing,and machine tools and factory automation solutions.

Tata Motors is committed to improving the quality of life of communities by working on four thrust areas - employability, education, health and environment. The activities touch the livesof more than a million citizens. The company's support on education and employability isfocused on youth and women. They range from schools to technical education institutes toactual facilitation of income generation. In health, the company's intervention is in both

preventive and curative health care. The goal of environment protection is achieved throughtree plantation, conserving water and creating new water bodies and, last but not the least, byintroducing appropriate technologies in vehicles and operations for constantly enhancingenvironment care.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Problem statement

Nano has always been a burning issue for Tata Motors. With cars going up in flames, thecompany must prove its customer focus now.

The main issues faced after its launch was the car had some technical faults which led the car caught fire.It affected the customers preference about the car and goodwill of the tata motorsltd.

After its launch in india nano was supposed to be launched in Europe.All that this car couldachieve hangs in balance because of the fire in Sawants car.and this was the first inci dent of the problem they faced. Now this isnt the first time that cars have caught fire in India. But somany cars of a model in such a short interval are worrisome. Just seventeen days after theSawant incident, on April 7, another Nano caught fire on the National Highway 8 near Anandin Gujarat. These incidents are worrying the customers about the safety aspect of Nano. TataMotors dealers who spoke to Forbes India said these customer concerns were straining thedealer-company relationship. One way Tata Motors could soothe customer nerves is to recall


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all the vehicles sold till now, fix the problem and then re-release the product back in themarket. Now thats an ethical dilemma. In India, a full -blown recall would just hurt the brandvery much.

There were in all five such incidents three were reported in the media and two werent and they all took place last year.

The company expert identified the prime suspect. It is a cheap part that goes by variousnames: Banjo bolt , clip or a coupler.

Basically, this is a small cylindrical connector that joins the petrol pipe coming from the fueltank to the fuel rail, which is a metal pipe that delivers petrol to fuel injectors in a car engine.Expert feels that the banjo bolt is flimsy and could spring a leak if not attached properly. The

place where this bolt is located is too close to a sensor connector and the fire wall. Now, if the bolt springs a leak, the petrol would end up on the engine block which could lead to a fire

at a high enough temperature.

Then after tata motors ltd was bound to made some revised strategies to gain back thecustomers satisfaction again and stand in market stongly.

Revised strategy

One way Tata Motors could soothe customer nerves is to recall all the vehicles sold till now,fix the problem and then re- release the product back in the market. Now thats an ethicaldilemma. In India, a full-blown recall would just hurt the brand very much.

In the biggest-ever recall f or the Indian auto market, Tata Motors is taking 1,40,000 Nanocars off the roads to replace the faulty starter motor free of cost. So then after Tata Motorsdeclared many lucrative offers to make its customers satisfied.

Such as

Exchange your old 2 wheeler or 4 wheeler and get an Exchange Bonus of Rs.10,000. Pay for the 1st year of car insurance & get covered for 3 years***.

With Prices starting at Rs.1.90 lakhs**, Nano is the smart buy that gives you:1. 9 exciting colours with 21 % more space2. Best Petrol mileage of 25 Kmpl3. Warranty for 4 years / 60,000 KM4. Best resale value

These were the revised strategies by tata motors ltd to avoid product failure and retain thecustomers back.
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Nokia corporation (C5 battery)

Industry overview

An industry with 5.6 billion customers with growth driven by increasing global demand for data services and rising mobile penetration in emerging markets

Think of telecommunications as the world's biggest machine. Strung together by complexnetworks, telephones, mobile phones and internet-linked PCs, the global system touchesnearly all of us. It allows us to speak, share thoughts and do business with nearly anyone,regardless of where in the world they might be. Telecom operating companies make all thishappen.

Not long ago, the telecommunications industry was comprised of a club of big national andregional operators. Over the past decade, the industry has been swept up inrapid deregulation and innovation. In many countries around the world,government monopolies are now privatized and they face a plethora of new competitors.Traditional markets have been turned upside down, as the growth in mobile services out

paces the fixed line and the internet starts to replace voice as the staple business. (For moreon this process, read State-Run Economies: From Public To Private. )

Plain old telephone calls continue to be the industry's biggest revenue generator, but thanks toadvances in network technology, this is changing. Telecom is less about voice andincreasingly about text and images. High-speed internet access, which delivers computer-

based data applications such as broadband information services and interactive entertainment,is rapidly making its way into homes and businesses around the world. The main broadbandtelecom technology - Digital Subscriber Line( DSL) - ushers in the new era.

Of all the customer markets, residential and small business markets are arguably the toughest.With literally hundreds of players in the market, competitors rely heavily on price to slog itout for households' monthly checks; success rests largely on brand name strength and heavyinvestment in efficient billing systems. The corporate market, on the other hand, remains theindustry's favorite. Big corporate customers - concerned mostly about the quality andreliability of their telephone calls and data delivery - are less price-sensitive than residentialcustomers. Large multinationals, for instance, spend heavily on telecom infrastructure tosupport far-flung operations.

Telecom operators also make money by providing network connectivity to other telecomcompanies that need it, and by wholesaling circuits to heavy network users like internetservice providers and large corporations. Interconnected and wholesale markets favor those

players with far-reaching networks.
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Company overview

Nokia Corporation is a Finnish multinational communications and information technologycorporation that is headquartered in Espoo, Finland. Its principal products are mobiletelephones and portable IT devices. It also offers Internet servicesincluding applications, games, music, media and messaging, and free-of-charge digital mapinformation and navigation services through its wholly owned subsidiary Navteq. Nokiaowns a company named Nokia Solutions and Networks, which provide stel ecommunicationsnetwork equipment and services. As of 2012, Nokia employs 101,982 people across 120countries, conducts sales in more than 150 countries, and reports annual revenues of around

30 billion. By the fourth quarter of 2012, it was the world's second-largest mobile phonemaker in terms of unit sales (after Samsung) , with a globa lmarket share of 18.0%.Now,

Nokia only has a 3% market share in smartphones. They lost 40% of their revenue in mobile phones in Q2 2013. Nokia is a public limited-liability company listed on th eHelsinki Stock

Exchange and New York Stock Exchange. It is the world's 274th-largest company measured by 2013 revenues according to the Fortune Global 500.

Nokia was the world's largest vendor of mobile phones from 1998 to 2012 However, over the past five years its market share declined as a result of the growing use of touchscreensmartphones from other vendors principally the iPhone, by Apple, and devices runningon Android, an operating system created by Google. The corporation's share price fell from ahigh of US$40 in late 2007 to under US$2 in mid-2012. In a bid to recover, Nokia announceda strategic partnership with Microsoft in February 2011, leading to the replacementof Symbian with Microsoft's Windows Phone operating system in all Nokiasmartphones. Following the replacement of the Symbian system, Nokia's smartphone salesfigures, which had previously increased, collapsed dramatically. From the beginning of 2011until 2013, Nokia fell from its position as the world's largest smartphone vendor to assumethe status of tenth largest.

On 2 September 2013, Microsoft announced its intent to purchase Nokia's mobile phone business unit as part of an overall deal totaling 5.44 billion (US$7.17 billion). Stephen Elop, Nokia's former CEO, and several other executives will join Microsoft as part of the deal.

Key elements of Nokias strategy

build a new winning mobile ecosystem in partnership with Microsoft bring the next billion online in developing growth markets invest in next-generation disruptive technologies increase our focus on speed, results and accountability
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Problem statement

The nokia c5 battery is a successful product in market of mobile industry. But there weremajor problems faced by the customers using it.as per the data they were

Draining of battery Low charging capacity Sometimes it resulted into blast.

As a result the cellphones which run on c5 batteries were also facing some limitations. Suchas battery goes empty on turning gprs on, device didnt workwell in 3g mode, and many

others.Apple redefined smartphone with touchscreen and Blackberry with Email,Samsung on theother hand move quickly into the smartphone market. But nokia was slow to respond to thistrend and was loosing customers.

As a result market of nokia was affected to a extent.customers were dissatisfied.

Revised strategy

As the batteries were making difficulties for the company ,they decied to replace the 25% batteries in market which were improper.this was just to make customer satisfy thecustomers.

After that company launched some new phones to cpture the market and sustain thecompletion.At the Consumer Electronics Show in 2012 Nokia announced the Lumia 900, featuring a 4.3-inch AMOLED ClearBlack display, a 1.4 GHz processor and 16 GB of storage. The Lumia 900 was one of the first Windows Phones to support LTE and wasreleased on AT&T on April 8. An international version will launch in Q2 2012, with a UK

launch expected in May The Lumia 610 is the first Nokia Windows Phone to run the TangoVariant (Windows Phone 7.5 Refresh) and is aimed at emerging markets
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windows smartphones also includes application and games,music and videos,web browser,email and other facilities which satisfy customers demands.

These phones got following ratings:

Build quality 10/10 Reception 10/10 Call quality 10/10 Internet 10/10So fast Multimedia 10/10 Camera 10/10 UI speed 10/10 Everyday usage10/10Never fails Text input 10/10Fast, fluent

Display 10/10 Battery 10/10Lasts forever could go for 3 days without charging!!

And after applying those revised strategies nokia was back in maket and it succeeded insatisfying its customers.


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Yamaha Motor Company ( Ray)

Industry overview

The Indian Automobile Industry embarked on a new journey since 1991 with delicensing of the sector and subsequent opening up for 100 per cent FDI through automatic route. Almostall the global majors have set up their facilities in India taking the next level of production of vehicles from 2 million in 1991 to 110+ million in 2011.

The Automotive Aftermarket Business in India:

The Indian automotive aftermarket is currently estimated at Rs 33,000 Crores, where theglobal market is at Rs 2,70,000Crores. India has been one of the few markets globally to buck the recessionary trend and recorded a strong 25.6% volume growth in FY 2010. The growthmomentum continues to be non-track with first 11 months of FY 2011, registering a growthof 29.8% over the corresponding period in the previous year.

The automotive aftermarket for parts in India is a large and growing market that spansmanufacturers, distributors, retailers, service providers and garages. Currently worth INR 19,000 crore to INK 24,000 crore, the market has been growing at 11 per cent, and isestimated to reach INR 39,000 crore to INR 44,000 crore by 2015. This growth will primarily

be fuelled by the increasing number of vehicles on the road, as well as the aggressiveexpansion of independent and foreign players. While current margins for the industry remainattractive, players across the value chain may see margins reducing to the lower levelsobserved in developed economies. Therefore, to sustain profitability, it is imperative that

players evaluate additional ways of capturing value, including expanding service networks,developing branded generic parts, forward integrating and building scale. Looking ahead,revenue pools remain large across the value chain; hence, if players are able to pursueappropriate strategies, significant profits can be made in this sector.

The Indian market is valued at INR 19,000 crore to INR 24,000 crore, of which roughly 30 per cent comprises spurious parts. CV, which include multi-axle vehicles, LCVs, buses andtrailers account for roughly 22 per cent of this market (INR 4,500-5,500 crore), with

Maharashtra, Tamil Nadu, Gujarat and Kerala accounting for over 40 per cent. The car market is estimated at INR 6,000-7,000 crore (34 per cent of the market) with Maharashtra,Andhra Pradesh, Delhi and Tamil Nadu cumulatively accounting for about 40 per cent of theshare.

The two - wheeler market is the largest at INR 10,000 crore to INR 11,000 crore, or 44 percent of the market, and Tamil Nadu, Maharashtra, Gujarat and Uttar Pradesh constituteclose to 45 per cent of the market. This market is also expected to grow the fastest, given thestrong growth in new sales (more than 15 per cent per year) and the large volume of two-wheelers entering the vintage for aftermarket parts (2 to 12 years).


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Company overview

Yamaha motor company, is a Japanese motorized vehicle-producing company. YamahaMotor is part of Yamaha Corporation and its headquarters is located in Iwata, Shizuoka. Along with expanding Yamaha Corporation into the world's biggest piano maker, thenYamaha CEO Genichi Kawakami took Yamaha into the field of motorized vehicles on July1, 1955. The company's intensive research into metal alloys for use in acoustic pianos hadgiven Yamaha wide knowledge of the making of lightweight, yet sturdy and reliable metalconstructions. This knowledge was easily applied to the making of metal frames and motor

parts for motorcycles. Yamaha Motor produces motorcycles, all-terrain vehicles, boats, marine engines including outboards, automobile engines, personal watercraft andsnowmobiles.

The Yamaha corporate logo is composed of three tuning forks placed on top of each other in

a triangular pattern.In 2000, Toyota and Yamaha Corporation made a capital alliance in which Toyota paidYamaha Corporation 10.5 billion for a 5 percent share in Yamaha Motor Company, whileYamaha and Yamaha Motor each bought 500,000 shares of Toyota stock in return.

Yamaha Motor Company was founded by Torakusu Yamaha.

Key products

Motorcycles

Racing Automobile engines Snowmobiles
http://en.wikipedia.org/wiki/Yamaha_Corporationhttp://en.wikipedia.org/wiki/Iwata,_Shizuokahttp://en.wikipedia.org/wiki/Pianohttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Genichi_Kawakamihttp://en.wikipedia.org/wiki/Alloyshttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Boathttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Personal_watercrafthttp://en.wikipedia.org/wiki/Snowmobileshttp://en.wikipedia.org/wiki/Tuning_forkshttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Torakusu_Yamahahttp://en.wikipedia.org/wiki/Torakusu_Yamahahttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Toyotahttp://en.wikipedia.org/wiki/Tuning_forkshttp://en.wikipedia.org/wiki/Snowmobileshttp://en.wikipedia.org/wiki/Personal_watercrafthttp://en.wikipedia.org/wiki/Outboard_motorhttp://en.wikipedia.org/wiki/Boathttp://en.wikipedia.org/wiki/All-terrain_vehiclehttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Alloyshttp://en.wikipedia.org/wiki/Genichi_Kawakamihttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Pianohttp://en.wikipedia.org/wiki/Iwata,_Shizuokahttp://en.wikipedia.org/wiki/Yamaha_Corporation


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Problem statement

During an extensive study of the product the company found that the handlebar fitted in fewRay scooters was affected by this potential issue.The reason for the recall is with thehandlebars, which the company says may not be properly welded in some units.Havingidentified all such vehicles with this issue, Yamaha has decided to voluntarily replace thehandlebar in all such scooters.

Revised strategy

There is a chance in extreme cases that this might impact the steering operation. As a part of an exercise to rectify the problem, the company will reach out to each individual customer in

possession of such scooter to process the recall.The replacement will be free of charge.

Two-wheeler maker India Yamaha Motor recalled 56,082 units of its scooter Ray after detecting insufficient strength in the handlebar of some vehicles due to inadequate welding.

The company plans to begin the voluntarily recall exercise through the 'Ray RefreshCampaign' which will be run through the companys dealership networks across the country

and customers will be contacted to replace the affected part through this campaign.

The campaign is subject to Ray scooters only and the newly-launched 'Ray Z' variant is notaffected by the problem, the company added.

The company, however, did not share the manufacturing dates of the scooters which will beaffected by the recall.

So to satisfy the customers the company recalled 53028 units from the market and replacingthe same with solved problems in it.


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Bibliography

http://www.investopedia.com/features/industryhandbook/automobile.asp http://www.tatamotors.com/

http://www.nokia.com/in-en/ http://www.yamaha-motor-india.com/about/profile/index.html http://timesofindia.indiatimes.com
http://www.investopedia.com/features/industryhandbook/automobile.asphttp://www.tatamotors.com/http://www.nokia.com/in-en/http://www.yamaha-motor-india.com/about/profile/index.htmlhttp://timesofindia.indiatimes.com/http://timesofindia.indiatimes.com/http://www.yamaha-motor-india.com/about/profile/index.htmlhttp://www.nokia.com/in-en/http://www.tatamotors.com/http://www.investopedia.com/features/industryhandbook/automobile.asp

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