Under the guidance of

Faculty Guide: Industry Guide:

Prof. Dhruva Chak Mr. Raman Guta
Professor and !rea "ead #Marketing$ !rea "ead #C%&U$ "aryana
&IM'(C" '!'! M)')R* +IMI'(D

*u,mitted &y:
Ra-at Dha.an #//DM//0$
PGDM 12//3/4 #Marketing$
&IM'(C"5 Greater 6oida
I

Letter of Authorization
I, Rajat Dhawan, a student of Birla Institute of Management Technology
(BIMTECH), hereby declare that I have wored on a !ro"ect titled #A study of
Customer Perspective driving 25 tonne Tipper purchase and to identify
factors ehind TATA 25!" decreasing mar#et share in $aryana region$
during my summer internshi! at %Tata &otors Ltd'(, in !artial fulfillment of the
re%uirement for the &ost 'raduate (i!loma in Management !rogram)
) guarantee*underwrite my research wor# to e authentic and origina+ to the
est of my #now+edge in a++ respects of the process carried out during the
project tenure'
My learning e*!erience at Tata Motors +td) , under the guidance of &r' Raman
,upta- Area .a+es &anager/Commercia+ 0ehic+e 1usiness 2nit3 and Prof'
Dhruva Cha# - Professor and Area $ead/&ar#eting3, has been truly enriching)
(ate, -une,./,01.0
22222222222222
3a"at (hawan

II

Summer Project Certificate
This is to certify that Mr. Rajat Dhawan , Roll No. 11DM117 , a student
of PGDM (2011-13) has worked on a summer project titled A study of
Customer Perspective driving 25 tonne Tipper purchase and to
identify factors behind TATA 2518 decreasing market share in
Haryana region at Tata Motors Ltd. after Trimester-III in partial
fulfillment of the requirement for the Post Graduate Diploma in
Management programme. This is his/her original work to the best of my
knowledge.
Date: ____________ Signature
______________

Prof. Dhruva Chak
BIMTECH SEAL Name of Faculty Mentor
III

[

Date: June,15,2012
TO WHOMSOEVER IT MAY CONCERN
Sub: Training Certificate
We hereby certify that Mr. Rajat Dhawan, a Full Time Student of Post Graduate
Diploma In Management Course, 2011-2013, of Birla Institute of Management
Technology (BIMTECH) has undergone his Summer Internship as mandated for the
completion of his above course from BIMTECH, for a period of 6/8 weeks starting
from 15
th
April to 15
th
June, 2012
The title and scope of his project was A study of Customer Perspective driving 25
tonne Tipper purchase and to identify factors behind TATA 2518 decreasing
market share in Haryana region. The project was carried out under the guidance of
Mr. Raman Gupta, Area Manager (Commercial Vehicle Business Unit),
Haryana.
We found him to be a dedicated and diligent student. We take this opportunity to wish
him every success in his future endeavors.
IV

Sincerely,
Mr. / Ms. _______________________
Designation _____________________
Location________________________
(Seal)
AC4567L8D,8&85T
I would lie to gratefully acnowledge the contribution of all the !eo!le who too
active !art and !rovided valuable su!!ort to me during the course of this !ro"ect)
To begin with, I would lie to offer my sincere thans to %&r' Raman ,upta-
Area &anager /Commercia+ 0ehic+e 1usiness 2nit3 9 .andeep Dahiya-
Territory .a+es &anager(- for giving me the o!!ortunity to do my summer
training at %Tata &otors Ltd'() 45ithout their guidance, su!!ort and valuable
suggestions during the research, the !ro"ect would not have been accom!lished)
My heartfelt gratitude also goes to the entire %Commercia+ 0ehic+e 1usiness
2nit( for their co6o!eration and willingness to answer all my %ueries, and !rovide
valuable assistance)
I also sincerely than %Prof' Dhruva Cha#(, my faculty mentor at BIMTECH,
who !rovided valuable suggestions, shared his rich cor!orate e*!erience, and
hel!ed me scri!t the e*act re%uisites)
V

+ast, but not least, I would lie to than all dealers and customers for sharing
their e*!erience and giving their valuable time to me during the course of my
!ro"ect)
Letter of Transmitta+
(ate,-une,./,01.0
Mr) 3aman 'u!ta,
71/8719, :ignature Tower6B,
;H6<, :outh City 6 .,
'urgaon = .0011.
(ear :ir,
3e, :ummer &ro"ect 3e!ort
>ttached herewith is a co!y of my summer6!ro"ect re!ort #A study of Customer
Perspective driving 25 tonne Tipper purchase and to identify factors ehind
TATA 25!" decreasing mar#et share decreasing share of tata 25!" in
$aryana region$ which I am submitting in order to mar the com!letion of an <6
wee summer !ro"ect at you organi?ation) This re!ort was !re!ared by me using
the best of !ractices and summari?es the wor !erformed on the !ro"ect and is
being submitted in !artial fulfillment of the re%uirements for award of di!loma)
VI

I would lie to mention that the overall e*!erience with the organi?ation was very
good, and hel!ed me to now how wor is carried out in real !ractice with the
hel! of your esteemed organi?ation) I feel honored that I got an o!!ortunity to
wor with Com!any ;ame , a com!any of great re!ute)
I ho!e I did "ustice to the !ro"ect and added some value to the organi?ation)
:uggestions8comments would be a!!reciated)
@ours truly,
3a"at (hawan
I6D(7
(7(CU'I%( *UMM!R8 9999999999999999999...9.../34
/. I6'R)DUC'I)6999999999999999999999.999...:3;
/./ !,out the comany99999999999999999999999.:
/.1 "istory of 'ata Motors +imited 99999999999999999...<
/.4 Product Portfolio99999999999999999999999....;
1. +I'(R!'UR( R(%I(=9999999999999999999999/23/:
1./ Commercial %ehicle Industry In India9999999...999999..../2
2.2 >ey Drivers of Gro.th for the C% industry In India 99999999..//3/4
4. F)RMU+!'I6G '"( M!R>(' R(*(!RC" PR)&+(M !PPR)!C"..../<3/?
4./ Pro,lem Definition99999999999999999999999/<3/;
4.1 !roach to the ro,lem99999999999999999999./03/?
:. R(*(!RC" M('")D)+)G8999999999999999999..1231:
:./ Research Design99999999999999999999999....12
VII

:.1 Data Collection999999999999999999999999.12
:.1./ *econdary *ources999999999999999999999....1/
:.1.1 Primary *ources9999999999999999999999....11
:.4 *caling 'echni@ues9999999999999999999999...14
:.: Auestionnaire Develoment and Pretesting999999999999.1:
<. D!'! !6!+8*I*999999999999999999999999.1;34?
<./ Ma-or Findings9999999999999999999999991;34?

;. F!C')R !6!+8*I*9999999999999999999999....:2
;./ Conditions for Factor analysis999999999999999999:2
;.1 Inut *creens9999999999999999999999999.:/3:4
;.4 )utut *creen9999999999999999999999999::3:B
;.: Interreting the factors99999999999999999999...:?3</
0. R(*U+'*9999999999999999999999999999 <13<;
0./'echnical Parameters .hich !ffect Purchase999999999999<:
0.1 Issues faced ,y '!'! customers at dealers end 9999999999.<<
0.4 *ervice issues faced ,y '!'! customers9999999999999..<<
0.: !M= ,enefits over '!'!9999999999999999999..<;
B. DI*CU**I)6*99999999999999999999999999.<03<?
B./ Issues in the *tructure and .orking999999999999999...<B
B.1 Future *coe )f .ork999999999999999999999..<?
VIII

?. +IMI'!'I)6* !6D C!%(!'*9999999999999999...9..;23;/
/2. C)6C+U*I)6*9999999999999999999999999.;13;:
//. R(C)MM(6D!'I)6*9999999999999999999999;<302
/1. (7"I&I'*999999999999999999999999999...0/30<
/1./ Auestionnaire9999999999999999999999..........0/30:
/4. R(F(R(6C(*.99999999999999999999999...........0;
/:. !PP(6DI799999999999999999999999..................0030B
/<. G+)**!R8 )F !&&R(%I!'I)6*99999999999......................0?
+I*' )F '!&+(*
'a,le /: +ist of assenger vehicles offered ,y '!'! Motors...............................................0
'a,le 1: +ist of Commercial %ehicles offered ,y '!'! Motors9999999..99..9 B
'a,le 4: *ectoral gro.th rates of GDP 83o38999..999999999999999.//
'a,le :: Performance of core industries in F8 //3/199999999999...999..../1
'a,le <: *tatus of 6"DP5 ro-ect .hich has ro-ects such as Golden Auadrilateral
and 6*3 (= corridor. 9999999999999.999999.99999./:
'a,le ;: Commercial vehicles sales volumes gro.th from F8 // to F8/1 in India999/<
'a,le 0: Market share of '!'! motors in "aryana roduct .ise99999..999.9/;
'a,le B: )erating (conomics Chart For a 'ransorter.999.99999999.99/?
'a,le ?: Market share of tiers month .ise as comared to cometition.999999.1;
'a,le /2: Correlation MatriC #Factor !nalysis$ 99999999999999999. ::
IX

'a,le //: >M) and &artlettDs test999999999..9999999999..999.:<
'a,le /1: Communalities initially and after eCtraction999999999999999.:<
'a,le /4: 'otal %ariance #eCtraction and rotation sums of s@uared loading9999...9:;
'a,le /:: Comonent MatriC99999999999999..9999999999.. :B
'a,le /<: Rotated Comonent MatriC999999..99999999999999.9 :B

+I*' )F GR!P"*
Grah /: IndeC )f Industrial Production Declining999999999999999/1
Grah 1: Rising Interest rates # Internal rate of Return$ monthly data999999./4
Grah 4: Freight Rates indeC gro.th over the years99999999999999../:
Grah :: Monthly data of tier segment as comared to cometition99999910
Grah <: Customers deending on their duration in ,usiness999999999.9.1B
Grah ; : 6o. of customers according to fleet9999999999999999...1?
Grah 0: Ma-or alications of customers99999999999999.99991?
Grah B : +oad caacity of trucks that customer use normally999999999.42
Grah ? : +oading attern of trucks9999999999999999999.9..42
Grah /2: Model of '!'! tier mostly used ,y customers99999999.99.4/
Grah //: Cometition resence in the 1< tonne category9999999999.9.4/
X

Grah /1: *ources from .here customers get kno.ledge a,out '!'! Motors 9.941
Grah /:: !.areness a,out the customer meets and free checku camaigns at
dealers end9999999999999999999999999.9..44
Grah /<: !.areness a,out a ne. roduct '!'! PRIM! that has ,een launched
fe. months ,ack999999999999999999999.99....44
Grah /; : Ma-or technical arameters considered ,efore ,uying a tier999....4:
Grah /0: Issues and ro,lems faced ,y customers at dealers end9999999....4;
Grah /B : 'echnical issues most commonly faced ,y customers9999999.....40
Grah /?: &enefits of !M= 1</B as comared to 'ata 1</B999999999..94B
Grah 12: *cree screen Plot9999999999999999999999999..
9...:0
XI

(Cecutive *ummary
Indian automobile industry is one of the largest in the world and is one of the fastest
growing globally across the globe. The commercial vehicles form a major share of
automotive industry in India. Commercial Vehicles (CV) are majorly used for two
imortant alications! Carrying goods and "assenger Transortation. CV industry draws
its demand from the economy and is rone to its cyclicality. This industry is deendent on
all economy related arameters such as #ross $omestic "roduct (#$")% industrial
roduction and infrastructure of a country. India has its share of big layers such as T&T&
'otors% &sho( )eyland% and *waraj 'a+da etc who have a good mar(et caitali+ation. The
Indian industry has also oened its gates for foreign layers such as Volvo% &', etc to
manufacture and sell their roducts in the Indian mar(et. -ence there is a lot of
cometition in this industry and comanies are coming u with innovative solutions to gain
mar(et share.
Introduction to the Pro,lem
In light of the intense cometition facing the CV industry% manufacturers are constantly
engaged in the creation of new roducts and introducing new technologies that would
hoefully win consumers. accetance. -owever% against a bac(dro of changing
technology and sohisticated consumer wants% gaining customers/ accetance and
increasing mar(et share for both e0isting and new roducts becomes an uhill tas(.
Tata 'otors % which is the most dominant comany for CV/s in India %offers a wide range
of CV/s ranging from )ight CV/s to 'edium and -eavy CV/s. &lthough the brand has
been erforming well in the )ight and Intermediate categories% it has been losing
significant mar(et share in '1-CV/s. '1-CV/s vehicles range from a #ross vehicle
weight (#V,) of 23 tonne to 45 tonne. The major di in the mar(et share of '1-CV/s is
due to fall in the sales of 23 tonne tiers. 23 tonne tiers form a major art of sales
volumes of '1-CV/s category. These tiers are mainly used in alications such as road
construction and coal mining.
2

-aryana has a huge otential for the tier mar(et owing to the construction activities
going on there. Infrastructure industry desite being hit by a slowdown is doing 6uite well
in -aryana. Tata 'otors mar(et share of 23 tonne tiers in -aryana region have gone
down from a 789 in the last year to 8:9 this year. This has been a major cause of concern
as T&T& is not able to ta(e advantage of otential that this region carries in terms of
tiers. Customer/s ersective and the (ey buying factors (owing to changes in economy)
have changed over time .The business dynamics and revenue model of customers have
changed over time. Thus, the primary aim of this research is to find out the customer
perspective driving a 25 tonne tipper purchase and to identify the key factors that affect
the purchase decision. &fter identifying the (ey factors affecting customer/s urchase %
the secondary objective will be to find out the erformance of Tata 'otors based on these
arameters . Therefore, as its secondary objectivesobjective, the research also aims at
identifying the factors for decreasing market share of TATA 2518 in aryana region.
Methodology !doted
;eeing the research objectives in mind% data was collected from both secondary and
rimary sources. &s the business is mostly dealer driven% dealers were visited in different
arts of -aryana. The main area where the research was carried out was confined to
<aridabad and *ohna. Technical secifications of T&T& tiers and of other cometitive
roducts were carefully studied. The factors that affect a customer urchase decision were
identified after interacting with dealers% T&T& authori+ed service stations% local wor(shos
and financers. $ata was collected from customers% mainly different sets of transorters with
the hel of a detailed 6uestionnaire. It heled in the roer analysis of issues they are
facing. <actor &nalysis was carried out to classify different variables ((ey buying factors)
according to correlation between them.
Ma-or Findings
The (ey factors that affected the urchase decision of a 23 tonne tier were identified after
classification of 22 variables were done by a factor analysis. : factors were identified
which were customer value roosition% rice and the differentiation that the roduct
2

offers. The major 8 technical arameters which customer thin(s about before urchasing a
tier were finali+ed. These were mainly engine caacity% gear bo0% gradeability%
susension% tiing (it and wheel base. =owadays% customer/s buying decision has
changed from simly being brand driven to value driven. &s er the findings% in addition to
brand value% customers want ease of serviceability% after sales suort% sare arts
availability and e0tra roduct attributes. Customers are not loo(ing for roducts but for
solutions that can enhance their business dynamics and revenue model. Customers are
loo(ing for discounts% schemes% and service schemes such as &nnual 'aintenance Contract
(&'C) which can ease minimi+e their cost on service.
Customers are facing roblems such as dealers being comlacent% warranties are not being
honoured% and low stoc( availability. *ervice issues such as high wear and tear in bogie
susension% gear bo0 and oor gradeability were identified as comared to &sia 'otor
,or(s (&',) vehicles which have con6uered the mar(et in <aridabad. 'ar(eting
camaigns have gone unnoticed in the mar(et. There are very few offers for loyal
customers. $ealer *ales >0ecutives ($*>) have never even visited majority of the
customers. Customers have never come across any advertising and romotional camaigns
being run by dealers. There have been very few customer meets and lant visits in the
recent ast.
Ma-or Recommendations
The CV industry is reeling under a lot of ressure due to the high e0cise duty and
increasing inut costs due to dereciation of ruee. This is forcing comanies to increase
rices. &lso% with the fear of rising diesel rices% customers are giving more imortance to
mileage. Tata 'otors should come u with better technology engines such as Common
?ail $irect Injection (C?$I) to increase mileage. They should add some attributes and
features to their roducts such as &C in cabin and sleeing rovision for driver% just to
differentiate from others. )eaflets of bogie susension are a major concern and they should
increase the leaflets both in front and rear susension so as to offer more strength. $ealers
should have a $*>/s secially dedicated to tiers. "roer mar(eting camaigns such as
free mileage chec(s and free oil changes should be done to increase loyalty of customers.
:

@uality <unction $eloyment (@<$) should be done so as to increase interaction between
sales and service staff.
!hapter 1
1. Introduction
/./ !,out the comany
Tata 'otors )imited is a art of T&T& grou of comanies. The Tata grou of comanies
comrises over 2AA oerating comanies in seven business sectors! communications and
technology% engineering% materials% services% energy% consumer roducts and chemicals.
The grou has oerations in more than 7A countries across si0 continents% and its
comanies e0ort roducts and services to 73 countries.
Tata 'otors )imited is India.s largest automobile comany% with consolidated revenues of
I=? 2% 83% 834 crores (B*$ :2.3 billion) in 2A22C22. It is the leader in commercial
vehicles in each segment% and among the to three in assenger vehicles with winning
roducts in the comact% midsi+e car and utility vehicle segments. It is the world.s fourth
largest truc( and bus manufacturer.
The Tata 'otors #rou/s over 33%AAA emloyees are guided by the vision to be ..best in the
manner in which we oerate% best in the roducts we deliver% and best in our value system
and ethics...
>stablished in 2543% Tata 'otors. resence indeed cuts across the length and breadth of
India. Dver 8.3 million Tata vehicles ly on Indian roads% since the first rolled out in 2534.
The comany.s manufacturing base in India is sread across Eamshedur (Ehar(hand)% "une
('aharashtra)% )uc(now (Bttar "radesh)% "antnagar (Bttara(hand)% *anand (#ujarat) and
$harwad (;arnata(a). The comany.s dealershi% sales% services and sare arts networ(
comrises over :%3AA touch oints.
4

Tata 'otors has over 24AA engineers and scientists in si0 ?1$ centres in India% *outh
;orea% *ain and B.;.
/.1 "istory of 'ata Motors +imited
The Tata grou of comanies was founded by Eamsetji =usserwanji Tata in 2787 and
carrying the legacy forward E?$ Tata founded Tata 'otors in 2543 with a vision of
changing the scenario of transortation in India.
It has been a long and accelerated journey for Tata 'otors% India/s leading automobile
manufacturer. -ere is a list of significant milestones in the comany/s journey till now !
2543! Tata >ngineering and )ocomotive Co. )imited (<ormer name of Tata 'otors)
was established to manufacture locomotives and other engineering roducts.
2534! Collaboration with $aimler Fen+ &#% ,est #ermany for manufacture of
medium commercial vehicles. The first vehicle was rolled out within 8 months of the
contract.
257:! 'anufacture of -eavy commercial vehicles commences.
2578! "roduction of first )ight commercial vehicle G Tata 4AH% which ruled the
mar(ets for a very long time.
255:! Eoint venture agreement signed with Cummins >ngine Co. Inc. for the
manufacture of high horseower and emission friendly engines.
2AA:! Dn 25
th Euly
% E.?.$. TataIs birth anniversary% T>)CD became Tata 'otors.
2AA4! Tata 'otors ac6uires *outh ;orean comany $aewoo Commercial vehicles
and also it becomes the first Indian comany to be listed in =J*>.
3

2AA8! Tata 'otors and 'arcoolo% Fra+il announce joint venture to manufacture
fully built buses and coaches for India and abroad.
2AAH! <iat grou and Tata 'otors announce establishment of joint venture in India.
2AA7! Tata 'otors comletes ac6uisition of B.;. comanies Eaguar and )and ?over.
2AA5! Tata 'otors launches =ano G IndiaIs cheaest car.
2A22! Eaguar and )and ?over establishes a new vehicle assembly lant in "une.
/.4 Product Portfolio
Tata 'otors has got a wide ortfolio of roducts which caters to almost every transortation
need and alication in the mar(et. The following is the roduct list based on the alication
it is used for!
Passenger %ehicles! The comany has its own roducts in every segment ranging from
-atchbac( to utility vehicles. It has an agreement with the <I&T 'otors for mar(eting
their assenger vehicles in India. &lso it ac6uired Eaguar and )androver in 2AA5 and is
resonsible for assembling and mar(eting their roducts.
Category Models

Made
-atchbac( =ano
Indica
Indica Vista
T&T&
*edans Indigo 'an+a %C*%X) T&T&
8

"ic(u Xenon XT T&T&
Crossover &ria T&T&
Category Models

Made
Btility Vehicles *umo #old
*afari
#rande '(ii
Venture
T&T&
)u0ury XE% X; and X<
?ange ?over >vo6ue
<reelander
$iscovery
Eaguar
)androver
'a,le /: +ist of assenger vehicles offered ,y '!'! Motors
Commercial %ehicles: These are the vehicles which are used not merely for own
transortation but for carrying goods and other construction material. Customers buy
these vehicles mainly as a source of their revenue generation. The commercial vehicle
range e0tends from the light twoCtonne truc( to heavy dumers and multiCa0led
vehicles in the above 4ACtonne segment.
H

TATA &ot ors: Commercia+ 0ehic+es TATA &ot ors: Commercia+ 0ehic+es
7

'a,le 1: +ist of Commercial %ehicles offered ,y '!'! Motors
5
'ye Category Model
#oods Carrier *mall Commercial Vehicles Tata &ce
)ight Commercial Vehicle Tata T)
Tata 2AH
Tata 4AH
)"T 2AH
Intermediate Commercial Vehicles )"T 22A5
Turbo Truc(
'edium and -eavy CV
a. ?igid Truc(s
*> 282:
)"T 282:
)"T 2323 TC 802
)"T 2327 TC 802
)"D 2322 TC 402
b. Tiers *; 282: TC 85H
*; 282: TC 4 0 2
)"; 282: 85H TC
)"; 2327 TC 804
)"; 23:A TC 804
c. Tractor Trailers )"* :A23 TC 402
)"* :328 TC 402
)"* 4A27 TC 402
"assenger
Transortation
4 ,heelers Fuses ,inger% ,inger "latinum
'agic % Iris %Venture.
*chool Fuses%28 seater% :2
:2seater % 8A seater buses

Defence and security %ehicles G Tata 'otors also rovides tactical and logistics solutions
to the Indian &rmy as it rovides roducts such as!
a. Troo Carriers
b. &rmoured Vehicles
c. Fuses and Truc(s as ambulances% water tan(ers etc.
/.: Future ro-ect and offerings
Tata 'otors is lanning to launch many new vehicles in different categories.
They have made a huge investment in ,olverhamton city in B.;. for manufacturing of
Eaguar and )androver roducts.
They have launched "?I'& in the heavy commercial vehicle segment but its full fledged
oerations still have to start. "rima is a truc( which uses Common ?ail $irect Injection
(C?$I) engine (first to be used in a truc( till now). It is ositioned as a global truc(.
Tata 'otors is lanning to sign an agreement with $?FC -ICD'/s $efence technologies
($><T>C-).
Eaguar and )androver land rover are lanning to boost their oerations by oening e0clusive
dealershis in metro cities.

!hapter 2
2A

1. +iterature Revie.
1./ Commercial %ehicle Industry In India
The Indian Commercial Vehicle (CV) Industry is the lifeline of the economy. &ccording to
=ational -ighway &uthority of India (=-&I) estimates 889 of the goods and 7H9 of the
assenger traffic in the country moves via road. The CV industry draws its demand from the
economy and hence is rone to cyclicality. -owever% due to greater versatility of usage% the
demand of )ight Commerical Vehicles ()CV) demand is less cyclical than the demand of
'edium 1 -eavy Commercial Vehicles ('1-CV) demand. The industry is caital intensive
in nature but with CV manufacturers moving towards increased ancillarisation% the initial
caital outlay for setting u a lant has decreased substantially. Instead manufacturers are now
directing significant effort towards vendor develoment and rationali+ation. The industry is
highly vulnerable to technological changes. ,ith environmental norms becoming stricter and
consumers demanding better technology vehicles% it has become essential for the
manufacturers to either have technology artners or a strong inChouse ?esearch and
$eveloment(?1$). The need of having a wide roduct range in all the segments along with
the short lifecycle of these vehicles ma(es it obligatory for the manufacturers to constantly
innovate to sustain cometition. These factors altogether increase the entry barriers to this
industry ma(ing it an oligoolistic mar(et.
India is a country with large and varied transort sector and its inade6uate infrastructure
constitutes a significant constraint on India/s growth otential. The #overnment of India
recogni+ed the imerative need for the infrastructure sector and has ta(en several initiatives
li(e Committee of Infrastructure% =ational -ighway $eveloment "roject (=-$")% =ational
'aritime $eveloment "rogramme (='$")% Ta0 -olidays etc for the develoment and
romotion of this sector.
22

1.1 >ey Drivers of Gro.th for the C% industry In India and their resent
*tatus:
The transortation industry is deendent directly on the growth of the economy % mobility of
oulation and other related factors. *ome of the macroeconomic indicators according to
investment rating agencies such as Investment credit ?ating agency (ICR!$ and Credit rating
and Information *ervices of India )imited (CRI*I+$ that affect the sales of commercial
vehicles are shown below!
/. GDP gro.th: India/s 6uarterCwise real #$" growth
2
decelerated for four consecutive
6uarters beginning in @4 2A2AC22 (DctC$ec/2A)% reaching 8.29 in @: 2A22C22. #rowth in
<J 2A22C22 is e0ected at around 8.59% as comared to average growth of 7.839 for the
eriod 2AA3CA8 to 2A2AC22.

'a,le 4: *ectoral gro.th rates of GDP 83o385 *ource: M)*PI
,hile agricultural and services sector were robust during this eriod% the major imact on
commercial vehicles industry was due to decline in industrial growth. The manufacturing
sector was hit by a slowdown (as highlighted in the figure) which might affect the growth of
CV industry in India.
1. IndeC of Industrial roduction :
22
*ector 2A2AC22 2A2AC22 2A22C22
@2 @2 @: @4 @2 @2 @:
&griculture H.A :.2 4.5 22.A H.3 :.5 :.2 2.H
Industry H.2 7.: 3.H H.8 8.2 3.A :.2 2.8
'anufacturing H.8 5.2 8.2 H.7 3.3 H.2 2.H A.4
*ervices 5.: 2A.A 5.2 H.H 7.H 2A.A 5.: 7.5
#$" at factor
cost
7.4 7.3 H.8 7.: H.7 H.H 8.5 8.2

Dn a cumulative basis during &rilC'arch 2A22C22% the Inde0 of Industrial "roduction (II")
with base as 2AA4CA3 grew at 2.79% down from 7.29 in the corresonding eriod of 2A2AC22.
22 month moving average of II" is still showing a declining trend. &s II" declines CV sales hit
a downfall too mainly in '1 -CV/s. ICR!Ds channel chec( suggests% while slowdown is
being witnessed across segments in '1-CVs% the higher tonnage% longChaulage vehicles are
e0ected to be more vulnerable to demand slowdown given their strong lin(age to industrial
freight availability.
Grah /: IndeC )f Industrial Production Declining5 *ource : C*)5 ICR!
4. Infrastructure IndeC
The inde0 of eight core infrastructure industries grew at a lower rate of 4.:9 during &rilC
'arch 2A22C22 as comared with 8.89 growth in the corresonding eriod of 2A2AC22. )ow
growth in core infrastructure is an area of concern as growth in infrastructure segment directly
relates to demand for commercial vehicles. )ower industrial roduction in sectors such as
infrastructure and mining is leading to low demand of commercial vehicles. 'ining has also
been banned in some areas which has affected the tier sales.
'a,le :: Performance of core industries in F8 //3/15 *ource: Ministry of Commerce
2:

)ower growth of roduction rates of cement% crude oil and gas shows lower lesser demand for
commercial vehicles.
The commercial vehicle industry resently is under a lot of ressure owing to the wea(ening
economy. *ociety of Indian !utomo,ile manufacturers #*I!M$ and Investment credit
rating agency #ICR!$ have defined some more features of the economy which may worry the
Indian commercial vehicle industry.
?ising interest rates have adversely imacted CV sales in <J 22C22 as forecasted by
IC?&.
Grah 1: Rising Interest rates # Internal rate of Return$ monthly data
?ising inut costs % dereciation of ruee% successive increase in rices by D>'/s and
with the fear of diesel rices being deregulated% customers are now loo(ing for vehicles
which rovide better oerating economics. This is going to hel increase sales of multi
a0led (mainly 23 Tonne) truc(s which offer more benefits in reduction of oerating cost.
Dur <inance minister has further troubled the CV customers as they had increased e0cise
duty over chassis of truc(s from 2A9 to 23 9. =ow they have decreased it by 29. This
increase in rices will definitely imact the customer urchase decision.
24

*I!M and ICR! suggest that freight rates on major routes have not increased in the last
one year in comarison to e0enses. That has further decreased the need for new
vehicles.
Grah 4: Freight Rates indeC gro.th over the years. *)URC( : '!'! D(*
Dn a cumulative basis% the freight inde0 grew by A.29 in <J 2A22C22 comared to a
growth of 2.89 in the revious fiscal. <reight rate is not growing as comared to the
e0enses which have constantly been increasing. This will further hamer the need for
new vehicles.
The only good oint ahead is the sanctioning of funds for the =-$" and Pradhan
Mantri Gram *adak 8o-na. These tye of rojects will definitely boost the ailing
'1-CV sector.
'a,le <: *tatus of 6"DP5 ro-ect .hich has ro-ects such as Golden Auadrilateral
and 6*3 (= corridor. *ource: ICR!
This shows that still there is :A.H7 9 of wor( on =-$" resently being imlemented.
&lso there is still 27 9 balance left to be imlemented. This might hel transorters get
23

load availability for the ne0t one year. It might be good news for comanies as they
should loo( for transorters who will be getting these orders.

!hapter "
4. Formulating the market research ro,lem
4. / Pro,lem Definition
Tata 'otors is the most dominant layer in the commercial vehicle industry in India with a
mar(et share of 35.4 9 in <J 22. The mar(et share for the last few financial years was around
8AC83 9 and it was 82.7 9 in <J22. It has been constantly on a decline and the major factor
was the slow growth in the '1-CV/s segment which was affected by the economy. The
results below show the trend or the declining mar(et share !

'a,le ;: Commercial vehicles sales volumes gro.th from F8 // to F8/1 in I6DI!
*ource: *I!M !6D '!'! D(*
The results show that volumes in )CV have grown considerably well as comared to
'1-CV/s. '1-CV/s segment has grown only by 3.:9 in <J22 which is very small in terms
of growth. The main agenda for the roject is to find out the reasons for decline in the
#$!%&s segment mainly in 25 tonne tippers which form a major art of the sales. 23 tonne
tiers are mainly used for transortation of construction material and mining alications.
These were the overall sales figures for India but the roject will be concerned with the
decreasing mar(et share of 23 tonne tiers in the -aryana region. -aryana has been a major
source of income for Tata 'otors '1-CV/s segment. Fut the recent roblems of illegal
mining being banned in areas li(e =arnaul% 'ewat% Tosham have brought down the demand
28

for these vehicles. -aryana is home to many small transorters who earn their income through
this business. They have been running transortation businesses from years and most of them
are family owned businesses. 'any belts in the -aryana region have got a large number of
crusher +ones where big stones which are brought from mines are bro(en into material that
can be used for construction.
'a,le 0: Market share of '!'! motors in "aryana roduct .ise
&s it can be seen that the mar(et share for tiers has constantly declined from 789 to 8:9
from last year to this year. This is the main roblem area that needs to be loo(ed into.
Construction is on a full swing in -aryana mainly in #urgaon and <aridabad. There are many
government road construction and highway develoment rojects which are going on. Tiers
are vehicles which are used for carrying construction material on short routes . There are many
tyes of business that they carry out deending on their fleet ownershi.
*mall <leet oeratorsC There are many of these whose main urose is to earn revenue
by travelling to mines and bringing stones from there to the nearest crusher +ones.
'edium <leet DeratorsC They are given major orders by large fleet oerators who
subcontract wor( to them of bring aggregates from crusher +ones to sites for mi0ing it
in a lant.
2H

)arge <leet oeratorsC They earn their revenue either from getting contracts from
bigwigs such as =-&I etc or they have their own rivate clients who are in to
construction.
The roblem is mainly concerned with e'ploring the business dynamics of these different set
of customers and also to find out the reasons behind their purchase of 25 tonne tipper.
&fter getting to (now the major reasons that affect their urchase decision % the other roblem
that needs to be highlighted is the reason behind their switching to cometition even when
T&T& 'DTD?* is a big brand name.
&s it is a commercial vehicles industry% transorters are not buying vehicles for their own use
but for revenue generation. This gives them a comletely different ersective and reasons to
buy a vehicle. #etting to (now the major arameters that affect their oerating economics and
factors that affect the urchase decision after considering..
(erviceability is another parameter that has needs to be understood . The coverage of
competitive products and their advantages over TATA tippers in every aspect needs to be
focused upon. This industry is totally dealer driven. The business model of every big
commercial vehicle consists of a dealershi between the comany and customer. $ealer is the
touch oint for the customer. Tata 'otors has a large networ( of dealers in -aryana which is
much better than the cometition. $ealers here can be of many tyes (2* % 2* and :*) where
:* means all service% sales and sares are available there. 2* includes sales and sares%
whereas they also have their 2* setu or Tata &uthorised *ervice stations(T&**) that are
comletely dedicated to service.
#etting to (now the business rocess at dealershis and service stations is an integral art% as
they are the face of T&T& 'otors. )aining an understanding of different marketing
campaigns held by dealers for promotion of tippers in their region and also the viability and
success rate of these campaigns comes under the scoe of the ro,lem.
4./ 4.1 !roach to the ro,lem
The roblem has been clearly defined above and a lot of stes had to be ta(en to gain insights
about the roblem. & very clear aroach was underta(en to solve the roblem which included
hel from both the secondary sources and rimary sources.
27

-ow was the roblem aroached e0actlyK
The first and foremost ste after the roblem was identified and defined was to gain
comrehensive (nowledge about the 23 tonne Tata Tier %its secifications and its
comarative analysis with other cometitors such as &', and &sho( )eyland.
&fter getting fully e6uied with the (nowledge about the tier mar(et and its
technicalities% the ne0t ste was to find out the current mar(et trends% major alications
and the economic scenario griing the area and the mar(et. "olitical decisions and
announcements in that area also had to be carefully gone through.
The ne0t ste was to (now the buyer rofile and different tyes of transorters from
comany sources and their alications.
Visited dealer setus in different areas of -aryana % esecially in major cities such as
?ohta(% -issar% ?ewari% <aridabad% *ohna and =uh.
'et $ealer *ales e0ecutives for tiers in that region and discovered the sales rocess
at dealershis and customer rofiles in that area.
,ent to cometitive dealer setus in the same area and gained (nowledge about their
roducts features and did a rice comarison.
,ent through dealers offta(e and retail targets and achievements with the hel of my
comany mentor and other sources.
&fter getting all the information from dealers and the comany about customers% a list
of customers and their re6uirements was made.
&fter going into the mar(et to some customers with $*>/s and mentor% tried to
discover the major arameters for urchase and finali+ed them for 6uestionnaire.
'et financers mainly in the CV industry both ban(s and =F<C/s to find out the current
credit rates.
& roer detailed 6uestionnaire had to be made having 6uestions related to customer
rofiling% reasons for urchase% issues % benefits in cometitors roduct.
,ent to customers mainly in <aridabad and *ohna area and interviewed them about
their business and delineated their oerating economics on a chart rovided by
comany(as shown in Table 7).
25

#ained insights from them regarding the issues in the roduct and other issues they are
facing. 'et drivers who are the end users and tried to understand the service issues
from their ersective.
=ow a roer analysis had to be made after getting their resonses filled.
The final ste was to find out the reasons for the major di in mar(et share through
analysis and also the major arameters that affect customer urchase decision.
'a,le B: )erating (conomics Chart For a 'ransorter. *ource: Comany Data
This is the oerating economics chart for a transorter and it shows many arameters which
are used by comanies to get to (now the customers better and for their rofiling. This
clearly hels them to calculate all the e0enses that they incur while running a
transortation comany and then calculate the rofit earned by them. These are some of
arameters which are loo(ed into!
2A

2. Initial Cost of Vehicle
2. )oan amount and 'oratorium "eriod
:. <reight ?ate er tri
4. ?outes followed and tris er day
3. <uel cost er tri
8. Crew salary($rivers and admin)
H. #ross weight of load carried("rimary and *econdary)

!hapter *
:. Research Methodology
:./ Research Design
The roblem that needed to be solved re6uired a tye of research which heled us get clear
resonses to the 6uestions we osed. &ccording to the roblem% an e0loratory research was
carried out. This tye of research was done as I had to go dee into the resonses that I got
from customers and too( out the variables of interest. The research had to be roerly designed
so as to get roer insights about the major reasons or variables that affect the urchase
decision. &lso this tye of research heled us to identify the reasons behind diing mar(et
share by roerly defining and rofiling the customers and their needs. This research design
also heled in e0amining associative relationshis between mar(et share and the roblems
(also (nown as the variables) with the hel of a 6uestionnaire having oen ended 6uestions.
The research was a mi0 of both 6uantitative and 6ualitative analysis. The aim was to ta(e
resonses from many customers in <aridabad and *ohna areas of -aryana. This is the area
where the research was focused uon as it was the largest mar(et for 23 tonne tiers.
22

@ualitative analysis was carried out to find out the variables which are affecting sales (major
service and dealer issues faced by customers) % while and after urchasing a 23 tonne tier.
The design focused on using a 6uantitative tool i.e. <&CTD? &=&)J*I* using *"** for
reduction of variables. There are a lot of variables which a customer thin(s about before
urchasing a tier. <actor analysis was done after receiving customer resonses regarding
those variables. These variables according to correlations between them were groued as
<&CTD?*. These factors form the major arameters or (ey buying factors for a 23 tonne
tier
:.1 Data Collection
$ata for this tye of research was collected from two tyes of sources!
2. "rimary *ource
2. *econdary *ource
:.1./ *econdary *ources
*econdary sources are a great hel for the collection of data and for the research. & lot of
secondary data sources have been used such as!
Comany ,ebsite
Frochures and catalogues of roducts
$ealers ?ecords and C?' data.
T&** service stations data(*ervice schedules)
Comany balance sheets and yearly Fusiness review
*ociety of Indian &utomobile 'anufacturers(*I&') websites
<ederation of &utomobile dealers association(<&$&)
IC?& and C*D websites
Tata $>* website
22

&ll these sources rovided an insight into the current economic scenario affecting the sales of
commercial vehicles in India. Comany monthly analysis reorts and balance sheets rovided
details of the current and last year/s mar(et shares and volumes of tiers in -aryana. *ome of
the economic asects had already been mentioned in the literature review above.
*ome of the major insights that I gained from secondary sources are mentioned below!
#ot access to mar(et share of Tata 'otors vLs cometition monthCwise data. It heled
in roer comarative analysis.
There are many economic arameters which have an effect on CV sales. These were
obtained from the 'inistry Df *tatistics and Central *tatistics Drgani+ation.
#ot access to a $ealer networ(ing ma as comared to cometition from the comany
which heled locate T&T& dealers as comared to others and their reach.
*ervice schedules % oil calendars% warranty % annual maintenance contracts and all the
other mar(eting schemes and loyalty rogrammes data was retrieved from comany
and dealers ortals. ,ill definitely hel in understanding serviceability of vehicles.
The rice lists of Tata roducts and other comany roducts were retrieved.
*I&' websites gave an insight about the future trends in the CV industry.
:.1.1 Primary *ources
The rimary sources of data include the following!
!ustomers who are buying the truc(( Transorters and fleet oerators)C
'any customers were visited ranging from large oerators to small fleet owners in -aryana
mainly in the <aridabadC*ohna belt. It was necessary to meet customers as they are the ones
who are involved in the final decision of urchasing a tier. The main aim was to e0tract the
information about their business dynamics and their revenue model. The oerating
economics charts of many individual customers were filled in after going to their sites. &lso %
a 6uestionnaire was develoed listing all the 6uestions that heled in the research rocess. It
had 6uestions which will hel the comany understand the (ey buying factors and the
reasons or the issues they are facing both in sales and after sales. @uestions were made
(eeing in mind the 23 tonne tier category. Customers were interviewed % 6uestions were
2:

as(ed and the 6uestionnaire was filled out accordingly. This data will definitely bridge the
ga between comany Is and customer/s mindset.
+ealers are also a rimary source of data. Tata 'otors have got dealers in almost every city
of -aryana. I went to dealers and retrieved information from their managers about the total
retail targets achieved and also the current mar(et otential for tiers. *o(e to many dealer
sales e0ecutives and got information about the major arameters that a customer considers
before buying a tier. #ot to (now the wor(ing of dealers and how they deal with
customers.
,inancers were also a major source of rimary data as they are the ones who directly interact
with the customer who is thin(ing of buying a tier. Cometition customers lists along with
the list of customers who are willing to buy more of cometitive roducts were retrieved
from them. *ome (nowledge was gained about the credit and the resent I?? (Internal rate
of return).
+rivers are also a source of rimary data as they are the end users or the consumers who
understand the roduct thoroughly and were a major hel as they described the nittyCgritty of
tiers.
:.4 *caling 'echni@ues
& 6uestionnaire was used in the research which had been formulated to understand what the
customer wants in the roduct. Imortant factors were derived out of the given variables of
interest using factor analysis. There was a secial 6uestion in the 6uestionnaire which had
different statements highlighting different arameters affecting the urchase decision of
different customers. =ot every arameter was relevant to a customer as every customer has
his own ersective regarding urchase. @uestions were as(ed in which there were different
statements on those arameters and customers were re6uired to fill the resonses on a 3 oint
)i(ert scale. The scale ranged from strongly disagreeing to strongly agreeing for the given
statement. *cale was as follows!
2. *trongly agree(2)
24

2. &gree(2)
:. =eutral(will not be able to decide based on this)(:)
4. $isagree(4)
3. *trongly disagree(3)
It was 6uite helful as after getting all the resonses filled% the major arameters (both
imortant and not imortant) were identified .)i(ert scale was helful in getting the factor
analysis done. Fased on the resonses filled by customers% variables which were related were
identified. &ll the correlated variables were ta(en together in a grou. Correlation between
variables was found out by shifting the )i(ert scale entries on to the *ss inut table.
(=ote! "lease refer to 22.2 of the 6uestionnaire in >0hibits)
?efer to the 6uestionnaire in the >0hibits section for the variables.
:.: Auestionnaire Develoment and Pretesting
Fefore develoing the 6uestionnaire a comlete study had to be underta(en about the tier
mar(et .&lso a thorough study of the buyers rofile was underta(en. & comlete (nowledge
about the technical arameters was re6uired. Cometitive roduct secifications were also
needed to be studied . 'any dealers were visited in areas such as ?ohta(% -isaar% and *ohna.
$ealer/s insights were very imortant as dealers are continuously in touch with customers.
&ll the major routes were learnt on which tiers travel in -aryana. &s mining was recently
banned in -aryana% which resulted in the major load coming from Fhiwadi% ?ajasthan to
crusher +ones in -aryana.
23

&ll the major crusher +ones in -aryana were visited from where the major transortation to
sites haens. $ealer/s sales e0ecutives heled a lot in listing the arameters that a customer
thin(s about before buying a tier. & 6uestionnaire was made after consulting my mentor.
The 6uestionnaire was focused on getting these resonses from customers!
Customer ProfileCThis was imortant as we wanted to (now the e0act fleet si+e that
the customer has and also the routes on which he travels. It also had a 6uestion which
as(ed them about their alication. The major concern was to go to customers who
had cometitive roducts as well as T&T& roducts so that a comarison could be
made.
&s(ed them about the arameters both from a technical and a mar(eting oint of view
stating all the arameters which could be imortant in a tier.
&fter identifying arameters for urchase% the ne0t thing that was re6uired to (now
was the issues that they were facing both in service and sales.
&fter getting to (now from secondary data that the major cometition there in that
region was &', 2327 and they were cutting into T&T&/s mar(et share% an effort was
made to identify the reasons behind their success by as(ing a 6uestion in the
6uestionnaire about its benefits.
These were the major identifications done before finali+ing a roer 6uestionnaire that was
valid and solved our roblem.
@ualitative variables were decided uon to be as(ed in the 6uestionnaire. These were the
variables which were then embedded in the 6uestionnaire to get resonses. These were
decided based uon the inuts from my industry mentor and my ersonal (nowledge after
comaring the roducts with cometition. &lso% after getting to (now the customers in
?ohta( and -isaar% the major factors which affect the urchase were identified. The same
(ey buying factors that were learned from customers in ?ohta(% -isaar and ?ewari were now
embedded in the 6uestionnaire and these 6uestions were targeted at customers in <aridabad%
*ohna and =uh area.
28

'ost of the variables that were as(ed in the 6uestionnaire were thoroughly e0amined and
then included based on some of the common customer inuts. They have been e0lained in
the data analysis section where factor analysis is done.
*ome of the variables of concern were identified after reading the secifications and are
listed below!
>ngine Caacity
#ear bo0
Clutch $iameter
,heel Fase
Cabin ergonomics
*usension
Tiing (it
'inimum turning radius
'ileage
Tyre si+e
#radeability
'a0 seed (Dther variables can be seen in the <actor analysis section)

!hapter 5
<. Data !nalysis
<./ Ma-or Findings
Data Collected from the secondary source
2H

*ome data was collected from the comany ortal to (now the current status of sales in
-aryana for 23 tonne tiers. The mar(et share of T&T& has been continuously diing in
the second half of the year as comared to cometition. Cometition% esecially &', is
gaining mar(et share and digging a hole in the oc(ets of T&T& in the tier segment.
'a,le ?: Market share of tiers month .ise as comared to cometition.
*ource: Comany data
Grah :: Monthly data of tier segment as comared to cometition
*ource : Comany data
27

These reorts show that the tier mar(et is declining in -aryana due to the macroeconomic
indicators not in the industry/s favour. Fut the main area of concern is that Tata 'otors is
continuously losing mar(et share to cometition. Tata 'otors growth in the 23 tonne tier
mar(et is very slow and it has lost considerable mar(et share to &', which is a comany that
has evolved just 2 years bac( and has now made a considerable art of transorters loyal to its
truc(s. &lso mining has been banned in -aryana which is affecting sales of tiers.
$ealers are also losing interest in selling tiers as it re6uires e0tensive effort in convincing
eole about their viability.
Data collected from the Primary source i.e Customers from the @uestionnaire
The 6uestionnaire was formed to gain some (nowledge about 23 tonne tier mar(et in the
-aryana region. ?esonses were filled by me after as(ing 6uestions to different customers in
<aridabad% *ohna and =uh area% which were the areas where growth was restricted and
cometition had a good hold. -ence to find out the issues e0tensive interviewing was done with
the customers and an indeendent view was ta(en from them. I also recorded some of my
interviews with oerators who were not so hay with their Tata truc(s.
*amle *i+e! 8A fleet oerators were visited by me in <aridabad% =uh and *ohna who were all
tier owners and all of them were urosely selected as most of them had cometitor vehicles
also with them in their fleet.
Felow are the results that were inferred from the analysis of resonses rovided by customers.
Customer Profiling
/. 6um,er of customers #deending on the duration in their ,usiness$
25

Grah <: Customers deending on their duration in ,usiness
&s can be seen from the grah around 489 of the customers are small oerators who are either
new to business or are in this business for less than 3 years. 3: 9 of the customers are more
than 3 years old in this business. They are the customers who (now the nittyCgritty of the
business. Tata 'otors should target the new entrants because they are the ones who will be the
most suscetible to mar(eting efforts by cometition. These customers are the innovators who
will go for cometition if they are offering discounts even if they are technically wea(. If these
48 9 customers start their business journey with a new roduct and find it good% it might create
reeat loyalty for cometition. Tata 'otors should also focus on e0isting and loyal customers
and try to retain them by offering loyalty discounts.
1. Customers #according to Fleet siEe$
Grah ; : 6o. of customers according to fleet
:A

&s can be seen the major share of customers here have more than 3 and less than 2A truc(s.
:: 9 of customers% in the range of 3C2A truc(s% are the ones who are now in their growing
hase and will re6uire more truc(s in future. The comany should also focus uon 22 9 of
customers who are big oerators and trac( them if they get any orders from rivate layers or
=-&I.
4. Ma-or alications of customers#6eed of 'iers$
Grah 0: Ma-or alications of customers
&s mining has been banned in -aryana% there are very few layers who use tiers for mining
uroses but there are some who buy tiers from -aryana and use them in areas where
mining is not banned. 839 of the customers use their tiers for transortation of construction
material from crusher +ones to sites. 3:9 of customers use them for bringing roc(s to crusher
+ones. Tata 'otors should build their vehicles (eeing in mind the two major alications.
:. +oad caacity of trucks that customer use normally# 6um,er of trucks$
Grah B : +oad caacity of trucks that customer use normally
:2

&s the grah shows the ma0imum demand is for 23 tonne tiers as it rovides good
oerating economics to customer. Customers did not have many truc(s above :2 tonnes as it
was not so useful to them in that area. Dnly the big oerators in that region afforded bigger
truc(s.
<. +oading attern of trucks# 6um,er of customers$
Grah ? : +oading attern of trucks
The loading attern of truc(s showed that 2AA 9 of customers overloaded their tiers to
ma0imi+e their revenue. Dn a normal tier having #V, of 23 tonnes they loaded 43 tonnes
normally. This is the reason behind the major service issues in Tata 'otors% customers want the
comany to ma(e a truc( according to the ractical scenario. Customers also increase their body
si+e to load more and this revents them from getting warranty. This has made the comanies
come u with a new tye of susension called the inverted bogie susension.
;. Model of '!'! tier # 6um,er of '!'! 'iers according to model$ in market

Grah /2: Model of '!'! tier mostly used ,y customers.
:2

The tier model which is the most famous and 579 of the customers are owning it in their
fleet is the )"; 2327 along with others in their fleet. 23 tonne tiers are one of the many
tiers which rovide value for money to oerators. =obody owns T&T&/s new truc(
"?I'& in that area.
0. Cometition rescence in the 1< tonne category# 6um,er of Customers$
Grah //: Cometition resence in the 1< tonne category
&s can be seen from the grah the major comany that is cutting Tata 'otors mar(et share in
this area is &',. 'any customers have bought their &', vehicles in the ast two years as
the comany has aggressively steed u its oerations in -aryana. 53 9 of customers have
bought &',. It is a huge number and is a reason for worry for T&T& 'otors. The other
cometition is not so good but '&= force and &sho( )eyland are constantly coming u with
new variants to increase mar(et share. It is a big threat for T&T& 'otors % as a comany li(e
&', which is just : years old in India has set u a massive name for itself and also gained
customers loyalty.
Marketing asect
B. *ources from .here customers get kno.ledge a,out 'ata 'iers
::

Grah /1: *ources from .here customers get kno.ledge a,out '!'! Motors
&bout 52 9 of customers get (nowledge about TataIs new roducts from word of mouth. This
can be a good as well as a negative factor. There are very few customers who get to (now about
Tata roducts from TV as there are no full fledged advertisements. "rint media also forms a
minor role in mar(eting T&T& roducts. 2: 9 of customers get to (now about new roducts
from mar(eting camaigns held at the dealer/s end which is a very small number. This also
shows that $*>/s visits to customers are also less. ,ord of mouth can be a negative factor as
well because eole can sread bad news e6ually fast as &', is already catching u.
?. Dealer sales eCecutive visits to customers# 6um,er of customers$
Grah /4: Dealer sales eCecutive visits to customers
&s can be seen% only 82 9 of T&T& 'otors customers in the area have not ever been in any
contact with any dealer sales e0ecutive. This is also one of the major reasons why we are
losing mar(et share as customers are not aware about changes in our roduct.
/2. !.areness a,out the customer meets and free checku camaigns at Dealers end
(=umber of Customers)
:4

Grah /:: !.areness a,out the customer meets and free checku camaigns at Dealers
end
32 9 of the customers do not even (now that these things even e0ist or occur. They have got
very little awareness about the romotional camaigns and customer meets as nobody has
ever told them. The ones who (now it also are not very well e6uied.
//. !.areness a,out a ne. roduct '!'! PRIM! that has ,een launched fe. months
,ack
Grah /<: !.areness a,out a ne. roduct '!'! PRIM! that has ,een launched fe.
months ,ack
33 9 of the customers don/t even have a clue about "rima which is their new roduct and the
comany claims that this roduct is the best roduct in the whole mar(et right now. If T&T&
has to recover its lost mar(et share it will have to majorly imrove its mar(eting
communication. They are greatly lagging behind cometition.
:3

/1. Ma-or technical arameters considered ,efore ,uying a tier # Finding the most
imortant$
:8

Grah /; : Ma-or technical arameters considered ,efore ,uying a tier
The major technical arameters were selected after going through the secifications
thoroughly and also after comaring secs with cometition. These were found to be the
factors which can have an effect on the urchase decision for a 23 tonne tier.
&s can be seen there are 8 technical arameters in a 23 tonne tier that customers have
chosen as the most imortant while they thin( of buying a new tier. *o the major 8
arameters as found out in the survey are!
2. (ngine caacity( includes Foth -orse ower and Tor6ue)C I also discussed these
arameters with customers and they said that ower of the engine matters a lot to
them as they have to drive with heavy loads and ic(u is one factor which is ta(en
care of by horse ower and tor6ue at a secified rm.
:H

2. Gear &oC G This has also emerged as one of the major factors. There are different
versions 8 seed and 5 seed. Customers are going in for the 5 seed gear bo0 with a
crawler gear to move on rough terrains. The comany manufacturing the gear also
matters to them such as they refer M< gear bo0es over T&T& made bo0es.
:. =heel ,aseC Tata 23 tonne tier comes in different wheel bases mainly :8 and 42.
,heel base is one of the factors as it is resonsible for si+e of the body that is at the
bac(. )arger wheel base is useful for the customers.
4. Gradea,ilityC It is the highest rated factor at 4H 9 as it determines the amount of
ower it has to climb rough and stee terrains. It is also referred to as the climbing
ability of a tier. "eole are not so hay with the gradeability that the T&T&
tiers offer.
3. *usension tyeC It is a major factor for owners nowadays as tiers come in two
tyes of susension
F>)) &=$ C?&=; *B*">=*ID=
I=V>?T>$ FD#I> *B*">=*ID=
"eole nowadays refer inverted bogie susension in their tiers as it does
not brea( easily on rough terrains and can handle more weight.
8. 'iing >it is a factor which is considered nowadays by owners as comanies offer
tiing (its both by ,iro and -J,&. -ywa has a reutation of being stronger.
Dther arameters such as cabin ergonomics% &C% fuel tan( caacity do not lay a
major role. These are factors which alone cannot be the arameters for decision.
/4. Issues and ro,lems faced ,y customers at dealers end #secially tiers$

:7

Grah /0: Issues and ro,lems faced ,y customers at dealers end
-ere the focus is on the 2
nd
art of the roject which deals with identification of issues which
are hamering Tata 'otors growth.
'any customers were as(ed about their e0eriences at Tata motors authori+ed dealers end
and they did not seem to be too leased about the e0erience they had with the staff there.
There are many issues that customers seem to be facing while dealing with dealers .*ome
customers are so uset with dealers that they have lost trust in Tata 'otors.
&fter the analysis% it was (nown that the most common roblem that is troubling the
customers the most is the service art. CV owners are in the mar(et for businessN they cannot
afford to lose money on service. They rely on the comany/s wide service networ(.
O*ervice eole do not honour warrantiesP is the first line that almost every customer who
has visited T&** says.
There is a big ga between what service stations thin( and what customers thin(. They both
act irresonsibly for ma(ing their own rofit. $ealershis are rivate ownershis which are
also there for business. They can/t give every service away for free. That is totally true% but
there is a ga between the thin(ing of the service and sales e0ecutive.
The *ales e0ecutives are not roerly e0laining to the customers the demerits of
overloading % but they are selling the roduct to meet their targets. &nd now when the
customer is in ain% and goes to T&**% they do not ac(nowledge warranties. This is a vicious
circle which has caught everybody.
:5

If H7 9 of the customers say that warranties are not being honoured% that means there is a
definite roblem either with the service station or with customers awareness about regular
chec(us. =o roer information and roer service schedules are rovided to customers
regularly. "roer (nowledge about &nnual 'aintenance Contract(&'C) is also not given
until the customer as(s for it. :39 of the customers agree to this.
829 of customers feel that dealers are being comlacent in their behavior . They feel that
customer will directly come to them and don/t feel the need to go to customers as Tata
'otors is a big brand name. This is a concetion that is griing the Indian customer and it
will reflect badly in future for Tata 'otors. Customer meets and camaigns are not held to
ma(e them feel secial% as felt by3H9 of customers to hel them feel secial. )oyal
customers are not been given discounts.
379 of customers feel that whenever there is a re6uirement of tiers they are never
available at the nearest dealers.
/:. 'echnical issues most commonly faced ,y customers
4A


Grah /B : 'echnical issues most commonly faced ,y customers
&s it can be seen from the grah above the major technical issues that the customer faces
while using a 23 tonne tier are!
2. Poor Gradea,ility G Climbing ability of tiers on rough terrain is not so good as
told by customers in a feedbac(. &s the tiers are loaded uto the to and they have
42
High wear and tear of sus!ension in bogie sus!ension 5
5
A0B
High rates of s!are !arts as com!ared to com!etition !
;
0<B
&oor !icu! !roblem <
<
//B
&oor fuel mileage 2
!
7/B
&oor gradeabilty on rough terrains <
=
/CB
5ea Body and Chassis Drame 2
2
7CB
Continuous Eil leaage !
2
01B
Continuous re%uirement of ta!!et settings 2
=
F1B

to climb towards Fhiwadi% ?ajasthan% they are not able to go u because they do not
have the re6uired strength to ull the load.
2. &ogie susension is not very successful in T&T& tiers because of low awareness
and also the leaflets brea( easily as comared to cometition. Customers have to
send considerable amount of time and money on getting it right.
Customers are facing a lot of roblems in Tata tiers with a bogie susension as they have a
lot of service issues. Infact many of the customers are not even aware that Tata has a tier
with bogie susension.

/<. &enefits of !M= 1</B as comared to 'ata 1</B as erceived ,y customers.
Grah /?: &enefits of !M= 1</B as comared to 'ata 1</B as erceived ,y customers.
&', or &sia motor wor(s is a comany which has been the major cause of worry as it had
done their homewor( when the comany first launched their tier 2327. 2 years ago there
was not even a single comany which was even near Tata tiers but the &', came u
with a launch of their vehicle 2327T" which only came with a bogie susension and a 5
seed gear bo0. Customers were not sure about the comany as it was new but then gradually
when they started trying the vehicle% it seemed to erform better than Tata 2327 on rough and
sandy terrains. It had almost all the features that T&T& lac(ed and this differentiation has
42

now made them =o.2 to Tata in the tier mar(et. ,ritten above are the major arameters
that eole might thin( as better than T&T& 2327. )et us see the feedbac(.
Fogie susension of &', was a success as comared to T&T& on rough terrains. It has
resulted in a reeat loyalty towards &',. &round 479 of customers believe that leaflets of
&', susension are much stronger than the T&T& susension.8A 9 of customers are
imressed by &',/s aggressive selling of vehicles at discounted rices. HH 9 of the
customers are imressed by the fact that it is roviding &C which increases driver efficiency.
4H9 customers thin( &',/s service stations are more efficient than T&T& as they are
roviding free services to customers .439 of the customers feel that roviding a 28 cum body
is more useful than the 24 cum body of T&T& tiers. It hels them load more er tri.279
of customers feel that it has got better design and loo(s. I don/t thin( this can be the only
reason for urchasing &',.
32 9 of the customers thin( that &', has a better gradeability than T&T& as it has the
re6uired strength to gain ower on rough terrains and sandy roads. 4H 9 of customers thin(
that &', have got better aggregates such as clutch% gear bo0. They are roviding both M<
and >aton #ear bo0 as comared to T&T& roviding its own gear bo0.
This shows that customer ercetion has changed over time and &', is fully utili+ing the
oortunity offered to them.
!hapter -
;. Factor !nalysis
4:

& 6uantitative tool was used i.e. <actor analysis for the urose of data reduction. In the
@uestion number 2A of my 6uestionnaire which states the (ey arameters or variables which
are of interest to the customer before he thin(s of buying a 23 tonne tier. These 22
variables were identified after thorough consultation and general understanding of tier
customers. &s there are a lot of variables which can be of interest to different customers% we
need to do a factor analysis to erform the following two activities!
To reduce the number of variables
To detect structure in the relationshis between variables% that is to classify variables.
This will hel us grou the variables according to their correlation with other variables. This
will be done after getting the resonses filled by customers. The 6uestion will be containing
statements referring to these 22 arameters% and a3 oint )i(ert scale is also used having
otions ranging from strongly agree to strongly disagree.
Customers are re6uired to fill the otions according to their agreement with the variables. &ll
of them are relevant variables but for a samle of 8A customers views may vary .
The 6uestions will be li(e O I will buy a tier if comany has good ricing mechanism in
lace such as discounts% offersP . The otions to select will be 2 being strongly agree and 3
being strongly disagree. : being neutral.
,hen all the resonses are filled these resonses will then be shifted to an *"** <I)> in
which these numbers will be filled below the variables. &fter it is done $ata reduction will
ta(e lace after finding correlation between variables.
;./ Conditions for Factor analysis
Variables of Interest
Frand =ame and ?esale valueC V&?2
>ase of serviceability or service networ( (schemes such as &'C)CV&? 2
"ricing techni6ues( $iscounts% offers)CV&? H
*are arts rices and availabilityC V&? 3
Technical "arameters and secifications G V&? :
Customer meets and )oyalty discounts
44

$ealers after sales serviceC V&? 4
>asy and customer friendly <inancing otionsC V&?5
#ood design and loo(sC V&?2A
Fetter features such as cabin ergonomics and &C at a little higher rice.C V&? 22
$ealer service scae scoe and availability of stoc( at dealer/s lace.CV&? 8
*amle si+e of resondents! 8A
Variables of interest! 22
The conditions for factor analysis state that samle si+e of resondents should be 4C3 times to
get a roer result out of the factor analysis.
&fter loo(ing at the variables many customers will definitely ic( more than one variable as
their choice and that means there will be a definite correlation between the variables.
;.1 Inut *creens
*te /! The inut screen will loo( li(e this after filling all the resonses on *"**.
*te 1: =ow go to &naly+e on the main menu and select $ata reduction and then factor
analysis.
43

*te 4: &fter selecting the <actor analysis a o u bo0 will oen u in which there will be
different arameters which need to be filled in order to get roer results.
*te :: *hift all these arameters into Variables bo0 and then clic( on $escritives and this
bo0 will oen u. *elect univariate descritive and tic( all the major arts under correlation
matri0 which will hel us analy+e the results.
48

*te <: =ow select the e0traction art and select correlation matri0 and also the scree lot
should be made .

=ow select the rotation bar and select Varima0 tye of rotation which will hel us get the
factors made. &fter selecting continue just ress o( and the outut screen will emerge which
will show the results accordingly.

;.4 )utut *creen:
The outut will show many results which will start with a correlation matri0
4H

Correlation MatriC
'a,le /2: Correlation MatriC #Factor !nalysis$
Correlation matri0 shows how each of the 22 variables are associated with each of the other
2A variables. =ote that there are some correlations which are high (above A.:) and some
which are low ( somewhere near +ero). The high correlations will indicate that two items are
associated and will robably be groued together by the factor analysis.
<or e0amle in the above correlation matri0 Var 2A and Var 22 have a high correlation of .
428 % it is ossible that they might be in a similar grou or factor. =e0t% several assumtions
are tested.
47

&fter the correlation matri0 there is the ;aiser 'eyer Dl(in (;'D) test and Fartlett/s test to
verify that if factor analysis can be done on these variables or not.
>M) and &artlettDs test
'a,le //: >M) and &artlettDs test
The ;'D test should come out to be more than A.3A and is inade6uate if it falls below that.
The ;'D test tells that whether or not enough items are redicted by each factor.
In this case ;'D is .33H which is above than .3A.
Fartlett/s test should be significant (i.e. a significant value of less than A.3)N this means that
the variables are correlated highly enough to rovide a reasonable basis for factor analysis. In
this case it is significant.
*hould be significant(less than A.3) indicating that the correlation matri0 is significantly
different from an identity matri0% in which correlations between variables. It is .AAA which is
less than .A3.
Communalities
'a,le /1: Communalities initially and after eCtraction
These communalities reresent the relation between the variable and all other variables (i.e.
the s6uared multile correlation between the item and all other items). It shows the
roortion of each variable/s variance that can be e0lained by the factors.
45

Initial3 ,ith rincial comonents analysis% the initial values on the diagonal of the
correlation matri0 are determined by the correlation of that variable with other variables.
(Ctraction3 The values in this column indicate the roortion of each variable/s variance
that can be e0lained by retained factors.
'otal %ariance eClained
'a,le /4: 'otal %ariance #eCtraction and rotation sums of s@uared loadings$
The total variance e0lained table shows how the variance is divided among the 22 ossible
factors. =ote that 4 factors have >igen values greater than 2.AA but we reject the fourth one
as there is only one variable in that factor according to rotated comonent factor matri0. ,e
have ta(en >igen values greater than 2. : factors are formed based on significance tests..
&lmost 38 9 of the variance is e0lained by the first three factors.
>igen Values! These show the variances of the factors
>0traction sums of s6uared loadings! The number of rows here shows the number of factors
retained.
3A

?otation sums of s6uared loadings! The values in this anel of the table reresent the
distribution of the variance after the varima0 rotation.
9 of varianceC This column contains the ercent of total variance accounted for by each
factor. -ere the first factor shows has 23.H 9 of variance and the second one 28.:57 9.
Grah 12: *cree Plot
*cree Plot G It is a lot of the >igen values against the number of factors in order of
e0traction. The shae of the lot is used to determine the number of factors.
-ere the scree lot shows that after : comonents% the 4
th
comonent is a little above 2.A but
the 4
th
factor only has one variable associated with it according to loadings% so it is rejected.
-ence scree lot shows that there are : factors
Comonent MatriC
32

'a,le /:: Comonent MatriC
This matri0 shows the factor loadings between the variables and factors% higher the loading%
higher it has a correlation with that factor.
Rotated Comonent MatriC
The rotated comonent matri0 is formed after varima0 rotation of comonent matri0.
Varima0 is a method of rotation that minimi+es the number of variables with high loadings
on a factor..
'a,le /<: Rotated Comonent MatriC
&fter loo(ing at the rotated comonent matri0 we can interret the factors based on this.
;.: Interreting the factors
32

V&? 2 has the highest factor loading on factor :
V&? 2 has the highest factor loading on factor :
V&? : has the highest factor loading on factor :
V&? 4 has the highest factor loading on factor 2
V&? 3 has the highest factor loading on factor 2
V&? 8 has the highest factor loading on factor 2
V&? H has the highest factor loading on factor 2
V&? 7 has the highest factor loading on factor 2
V&? 5 has the highest factor loading on factor 2
V&? 2A has the highest factor loading on factor 2
V&? 22 has the highest factor loading on factor 2
Variables 2% 2% and : will be groued under factor :.
Variables 4% 8%5%2A and 22 will be groued under factor 2.
Variables 3% H and 7 will be groued under factor 2.
#rouing of these variables is done under three factors. Variables are classified under these :
factors and data has been reduced from 22 variables to : factors.
<actor 2 <actor 2 <actor :
$ealer sales e0ecutive
after sales service
*ares arts rices not
high and availability
Frand name and ?esale
value
$ealers service setu and high
stoc( availability
#ood ricing mechanism such as
discounts%offers and schemes
#ood service networ(
and *chemes li(e &'C
<inancing otions for
vehicle on a user friendly
installments basis
?egular customer
meets% arties% factory
visits and demos.
Technical "arameters
and secifications
Fetter loo(s and stylish design
>0tra features such as as &C
&nd better cabin ergonomics at
at little higher rice.
: main factors have been formed
3:

Factor 4 can be named as the customer value proposition factor which includes
brand name and hence a good resale value of the tier. Frand name is affected by
the mar(eting camaigns the comany holds. Frand name is made by having a
roduct which has good technical arameters and hence has a ositive word of mouth.
&lso a good service networ( suorts the brand name. &ll these variables are
interrelated. &ll these arameters rovide the customer satisfaction and trust in the
comany. The customer feels that the money that he has sent is worth it. If a
roduct is good technically% its erformance is good% also the service team is efficient%
it hels the customer feel satisfied about his urchase decision. Customers have a
ercetion that with good brand name comes good resale value.
These arameters are the main arameters that affect the urchase decision.
Factor 1 ! It can be called the price factor
#ood ricing techni6ues such as discounts% offers and schemes regularly given to
customers ma(e them feel hay and can directly affect the urchase decision. If the
sare arts cost is not very high as comared to cometition the customer will
definitely bend towards that comany as there is regular wear and tear of aggregates
in a tier. If the customer gets chea sare arts it will definitely hel him. ?egular
customer meets% loyalty discounts for loyal customers is a way to retain customers.
The comany can also instill confidence in customers by demos and factory visits and
arties%
Factor /! It will be called the e0tra features or differentiation factor.
>very comany might offer the same benefits in terms of technical arameters% and
ease of serviceability. It can also be cometitive in terms of ricing. Fut the only
oint of differentiation is the e0tra services or features that can be the order 6ualifier
or maybe an order winner for your comany. $ealers are a major art of any CV
business as they are the ones who interact directly with customers. $ealers setus and
service stations can have a good ambience .*ecial visits to wor(shos can be
34

arranged for the customers to see how the service haens. ?egular driver training
can also be done to be different.
>very customer wants convenience so he will definitely demand the vehicle
whenever he wants it. Thus dealers should have high stoc( availability. &lso
comanies can rovide many other features in their roduct such as better loo(s and
&C at a little higher rice to ma(e their roducts more aealing.
!hapter .
33

0. Results

&fter a detailed and thorough study which was mainly focused uon the 23 tonne tier
segment in <aridabad% *ohna and =uh areas of -aryana% it seems very clear that '1-CV/s
(includes tiers) growth has hit a slowdown in recent times owing to India/s wea(ening
economy . &s the roject revolves around customer ersective and wea(ening mar(et share
of Tata 'otors in this segment% there are many factors which have affected both the
customers and the comany on the economic front.
>conomy arameters have nothing to do with wea(ening mar(et share of Tata 'otors as
mar(et share is a cometitive indicator . It has to do with customerIs urchase sentiments and
behavior and also the decreasing Total Industrial Volume (TIV) for industry.
*ome of the factors as deduced from the secondary sources of data such as IC?&% C?I*I)
and 'D*"I reorts which directly affect the customer urchase behavior are!
#$" growth has decelerated from 7.839 in 2AA5C22 to 2A22C22. This is a factor to
worry about as the industrial sector% majorly the manufacturing sector% is declining
constantly. This directly affects the load availability which% in turn hamers the
demand for new tiers. Customers will not thin( of buying a new tier until there is
load availability.
Then II" has declined from2:.2 9 in &rC2A to 4.29 in <ebC22. Industrial roduction
has gone down which in turn% hamers the need for new vehicles. The cement
industry has also been hit by a crisis. "roduction has also fallen. It is directly lin(ed to
the construction business. The construction business is already down due to high
interest rates and inflation. The tiers mar(et deends directly on the construction
business. Transorters will buy a tier only when there will be sufficient
construction material to transort.
The current internal rate of return for loans in '1-CV/s segment is around 2:C249
which has grown over the years. &lmost all of the transorters buy tiers on loan for
about 4 years or so. This is also a reason for hamering urchase of new vehicles.
38

Inut costs are increasing day by day owing to high imorts and dereciation of the
Indian ruee. This union budget also increased the e0cise duty on truc( chassis from
2A9 to 249. This has also forced comanies to increase rices% thus hamering the
demand for new tiers.
?ising fuel costs and the fear of rices of diesel being increased or deregulated have
gried customers and they are now cautiously buying new vehicles after chec(ing
their fuel mileage.
&ll these factors have started changing the customerIs ersective towards buying a new
tier. The customer/s mindset has changed over the years and comanies have to constantly
change their roducts to match their needs. The customer now has changed his riorities
from a normal brand driven urchase to a urchase which gives value for money.
&fter doing the survey and collection of rimary data about the tye of customers% their
alication and their arameters for urchase% it is seen that most of the customers use tiers
for alication of road construction and moving of earth material. 'ost of them are family
owned businesses and have been running for years. 'ost of them are majorly using 23 tonne
tiers to meet their alication.
&fter erforming factor analysis on 22 major variables these are the : factors found as
imortant decision ma(ers while urchasing a 23 tonne tier. These are as followsN
/$ Customer value roosition factor was identified which had the following variables!
a.) Frand value and ?esale Value
b.) >ase of serviceability or a good service networ( with service schemes such as &'C
c.) Technical "arameters and *ecifications of the vehicle.
1$ Price Factor G It has changed from a brand driven mar(et to a rice sensitive mar(et
owing to ressures from the economy. It has got variables such as !
a.) "ricing mechanisms such as discounts% schemes and offers on urchase of tiers
b.) ?egular customer meets% factory visits% and demos and romotional arties.
3H

c.) *are arts cost not very high
4$ (Ctra features factor or the differentiation factor or make customer feel secial
factor
a.) >asy and better financing otions which are customi+ed according to need.
b.) $ealer setu and servicescae and stoc( availability.
c.) Fetter loo(s and design of a tier
d.) >0tra features such as &C% cabin ergonomics at a little higher rice.
e.) $ealers sales e0ecutive after sales service
These were the major arameters which are identified as the (ey buying factors and these
needs to be seriously considered by comanies in order to increase their sales.
The roject also loo(ed uon the technical arameters which are most imortant to a
customer before ma(ing a urchase. 3 arameters were identified .These are as follows!
0./ 'echnical Parameters .hich !ffect Purchase
>ngine caacity(-orse "ower and Tor6ue)
#ear Fo0(5 seed and 8 seed% M< or >&TD=)
#radeability
*usension tye( Fogie or Fell and Cran()
Tiing (it( -J,& or ,iro)
,heel Fase
These arameters should be (et in mind while designing a tier.
=ow the ne0t ste was to identify the reasons behind the decreasing mar(et share of T&T&
'otors 2327 in <aridabad and *ohna areas. @uestions were as(ed and the analysis was done
on the major issues both at the dealers end as well as the service issues that croed u. 3
major issues faced by T&T& customers at dealers end are!
37

0.1 Issues faced ,y '!'! customers at dealers end
$ealers being comlacent in their attitude and behavior towards Customers.
*ervice stations e0ecutives do not honour honor warranties.
$ealer sales e0ecutive never visits or aroaches customer regarding urchase. =o
customer meets or arties are held.
$*>/s do not rovide awareness about schemes such as &'C and other loyalty
rograms such as T&T& $>)I#-T just to ma(e rofit.
)ow stoc( availability for tiers.
0.4 *ervice issues faced ,y '!'! customers
: major service issues faced by customers of 2327 T&T& tier in the technical wor(ing of
Vehicles have been identified with the hel of analysisC
"oor gradeability on rough terrains and also not efficient on sand alications.
"oor strength of leaflets in the Fogie susension.
,ea( body and chassis frame
<indings show that the mar(eting camaigns done by Tata Tiers are not so successful in
the region as there are very few customers who even (now about the camaigns such as free
oil chec(% mileage chec( etc. There are very few customers whom the $*>/s have even
visited. These are the major reasons for T&T& losing mar(et share. Dne of the major
findings shows that almost every customer has got an &', tier along with a T&T&
tier. This shows that &', has got a huge resence in the mar(et.
They are the ones who have come u as a cometitor for T&T& in the 23 tonne tier
category. & comarative analysis was done and customers were as(ed about benefits that
&', has over T&T&. Felow is list of major benefits that we found out from the analysis!
35

0.: !M= ,enefits over '!'!
&C rovided in cabin
)ow wear and tear of leaflets in Fogie susension.
-as a 28 cum body instead of 24 cum body so that more loads can be carried.
&ggressive selling in terms of discounts and offers.
*ervice stations are more efficient
Fetter aggregates such as clutch and gear bo0
Fetter gradeability and ic(u while climbing and on sandy (rough) terrains.
!hapter 8
B. Discussions
8A

The data has been collected% analysis has been done and now the results have also been made
according to the analysis of customer data. The results above clearly e0lain the two major
reasons for doing this roject i.e.
<inding out the (ey buying factors that affected urchase of tiers
To identify the reasons behind T&T&/s tier 2327 decreasing mar(et share
in <aridabad and *ohna area.
These 6uestions have been answered to 6uite an e0tent after collecting data and doing roer
analysis. Fut every ossible reason or factor is not ossible to embed into results or data.
Customers can have their own thin(ing and can buy a tier based on any arameter other
than these also.
There were some of my ersonal observations in addition to the results shown above. &s Tata
'otors have got a large networ( of dealers and service stations in comarison to
cometition. The majority of their big dealers were visited and information about their sales
rocess and their organi+ational structure was collected. $ealers are considered as the face of
comany as they are the ones who interact with the customers. $ealershis are being
rovided by every comany to enhance their reach% but the owners of dealershis are decided
based on re6uirements such as a large amount of land% money to invest and caability to
invest in stoc( as these vehicles are 6uite costly. In addition to the roblems mentioned in the
results section% it is imortant to bring to the fore some more issues both at dealers and
comany/s end. <irst let us see the way the business model wor(s.
>very dealershi (:*) having authority for all sales% sares and service has a 'anager
who heads the oerations at the dealershi. -e is resonsible for sales of every
commercial vehicle ranging from )CV/s to -CV/s.
Then there is a dealer *ales 'anager who is resonsible for retail sales for one or two
roducts in those dealershis.
I wor(ed at the area office for CVFB (Commercial Vehicle Fusiness Bnit) in
-aryana. In the same way there are regional offices in different areas of India headed
82

by &rea 'anagers. >very region has got one or a ma0imum of two Territory *ales
'anager (T*') for each segment.
The wor( of these T*'/s is to ush and suervise retail sales of their dealers. They
have targets set for every month and accordingly every dealer has their own targets.
B./ Issues in the *tructure and .orking
Territory *ales 'anagers and &rea managers who are resonsible for retail sales by
dealers are under ressure of getting rid of their stoc( every month% and that amounts
to high dealer offta(e.
They ma(e the dealers ta(e stoc( from them every month% not according to dealer/s
re6uirement but to meet their targets. They are not being unreasonable as they are
also being ressuri+ed to meet targets but ultimately the dealer/s stoc( increases and
he has to deal with it. They are not concerned a lot about retail sales as it is the role
(headacheQ) of the dealer according to them.
$ealers also are very hay selling the vehicles which sell by themselves i.e. the
customer comes and ta(es them. They feel no need to go to customers themselves for
selling a roduct.
There is no or very little training rovided to dealer/s e0ecutives about the roduct.
Territory *ales 'anager has the authority to tell the dealer to emloy a $ealer sales
e0ecutive e0clusively for their roduct. 'anagers at the dealers end are not very
hay in emloying e0ecutives as they don/t feel the need of doing so. This is where
they lac( initiative and are comlacent.
$ealers were visited and they were more than hay selling higher volumes of )CV/s
as there was a high demand for them and customers themselves came to dealer for
buying a vehicle. Fut for selling a tier which is highly based on its technical
arameters% there is a need for an e0erienced and a trained e0ecutive for convincing
customers.
'ost of the dealers visited were not ready to hire a dealer sales e0ecutive for tiers
as they do not sell in high volumes and re6uire e0tensive effort in selling. Those who
82

have hired them not aying them well enough to stic( to their job. The eligibility for a
dealer sales e0ecutive is being class 22
th
ass. *o e0ecutives are not even graduate
and well read and hence unable to tal( convincingly to their customers.
'ost of the customers have set u their own wor(shos and hired mechanics for
regular servicing of their tiers. Dnly those customers go to *ervice stations who
have got an &'C .&n &'C does not cover a lot of arts under the scheme. "eole
are not too hay with the service.
'ar(eting efforts by dealers such as T&T& $elight for loyal customers have gone
unnoticed in the mar(et. There are no romotional cams or dealer showroom visits
underta(en to show customers their roduct. $ealers are also not too hay buying
tiers from the comany as they are too costly and re6uire time and effort to sell.
These were some of my ersonal observations while wor(ing on the roject .,hen dealers
were visited in different states% an effort was made to understand their tye of wor(ing.
B.1 Future *coe )f .ork
&s this business is mostly dealer driven% there can be a lot of wor( understanding the
wor(ing dynamics of dealers and their needs. It can be focused on the issues they face from
the comany/s oint of view. They have got different ressures as they have to ma(e money
by selling Tata 'otors roducts. & lot of arameters such as dealer margins% suort
rovided by the comany to the dealer and also servicescae of dealer showroom can be
studied and then a roer research can be done to imrove their sales rocess and ma(e it
more rofitable. I did not cover this asect thoroughly as I was more focused on customers
but will definitely cover all the major sta(eholders in the business ranging from financers%
dealers and bodybuilders if given the oortunity to do the roject again on a new basis.
!hapter /
?. +imitations and Caveats
&s the roject was mainly concerned with mar(et research about 23 tonne tiers in
<aridabad% *ohna and =uh areas of -aryana % it re6uired e0tensive travelling in these areas to
8:

meet customers and dealers both. There were many constraints which were faced while
wor(ing on this roject. *ome of them are listed below!
Geograhical scoe! &s I was wor(ing in #urgaon which was the area office
handling the resonsibility for sales of CV/s in -aryana region% the main agenda was
to find out the reasons behind decreasing mar(et share in -aryana. Fut as there are a
lot of small villages and tehsils in -aryana% a roject was given to me for the area
covering <aridabad% *ohna and =uh. It was not ossible to cover the whole of
-aryana obviously but the area assigned was also a major one and was not easy to
cover. 'ajority of the customer/s i.e. transorters had their offices and homes in
village areas surrounding <aridabad such as $houj% *irohi and "ali. They were 6uite
far off and roads were terrible. It was difficult traveling to these areas. =uh ('ewat)
was also an area where I went and it is around 5A (ms from $elhi and is 6uite
difficult to reach customers as they do not have very nice or fancy offices but small
huts where they sit and coordinate with drivers. They were called and then visited by
me. <inding their wor(lace was very difficult.
+anguage constraintC Customers in -aryana mostly so(e -aryanvi their local
language and they are not very well e6uied with >nglish words mentioned in the
secifications catalogue such as $ifferential% Tier etc. They have their own
terminology concerning tiers. It was difficult to gras what they said in the initial
meetings. <or e0amle they call tier a O-J,&P and differential OhandiP.
'ime scoe3 Time was also a major constraint as I used to travel long distances to
=uh and 'ewat just to meet one or two customers. In the initial days getting to (now
the industry too( me time to gras. *ubse6uently% travelling was done with my
mentor to ?ohta(% -isaar% and ?ewari for 4C3 days each. $ealers and customers were
visited there and it was observed how my mentor tal(ed to customers and addressed
the major customer grievances. Then% I was left alone to survey customers in
<aridabad without having the records of customers to visit. *o I used to visit any and
84

every tier customer who was seen on the road. It too( a lot of time as I used to tal(
to drivers% and then visit customers. That is why a limited number of customers could
be surveyed by me.
Data G $ata was not available readily% many comany ortals were seen% data was
searched and also customers list had to be obtained from the regions dealer This was
sometimes obtained with lot of difficulty. Cometitor/s customers were also visited
by me. I went to their service stations osing as a trainee and they were arehensive
of giving customer data to a stranger.
!hapter 10
/2. Conclusions
These are some of the major oints which were concluded after a thorough study of the
results and an e0tensive discussion!
83

&fter the data analysis and results% it was finally inferred that a major share of
customers are using tiers in <aridabad and *ohna for transortation of construction
material and for duming of earthmoving material.
& major share of customers has been using 23 tonne tier as it rovides them better
oerating economics. It is a multi a0led vehicle and all the truc(s and tiers below
this range of tonnage are single a0led vehicles. The model that most of the customers
in that region are using is the )"; 2327 model by T&T& having a 24 cum body and a
bell and cran( susension.
&', is the only comany whose TIV and mar(et share has increased in the recent
ast in these areas. &', also offers the same tier model no. 2327 T" but with a
28 cum body and bogie susension. <indings say that 579 of customers in that region
have a &', 2327 tier.
&', has been the major reason for the diing mar(et share of T&T& in -aryana
region. It is a three year old comany which has done their homewor( well by
identifying the wea(nesses that T&T& had. They have done well and have a good
roduct.
There is a major share of customers who have been in this business for more than 2A
years. They have a good share of T&T& tiers% but as the economic scenario is blea(
they are also shifting to other roducts roviding an attractive value roosition.
&s found in the survey there are not many mar(eting camaigns organi+ed by T&T&
that customers even (now about. 'ost of the customers get to (now about the
roduct by word of mouth. There are no &dvertisements on TV or newsaers.
$ealer sales e0ecutives of T&T& dealershis have never even cared to go to most of
the customers.
The mar(eting camaigns and awareness about T&T& tiers is very low in these
regions as comared to cometition such as &',. Customers are not even aware
that T&T& comes with a bogie susension.
88

The major arameters which affect the urchase decision of a 23 tonne tier was
found out by as(ing customers their views on certain arameters. &fter doing analysis
three main factors were formed. These have been mentioned in the ?esults section.
<actor 2 was also called the value roosition factor which consisted of Frand
name % resale value % serviceability and technical secifications as the variables.
These factors are imortant arameters and T&T& should focus on building on these
arameters in customers by regaining their lost faith.
Tata/s brand name deends uon the service it rovides at stations% roduct features
technically should be the best as comared to cometition. To recover their lost trust
they will have to use mar(eting camaigns such as free service chec(s% oil chec(s and
mileage chec(s at their service stations.
They are not investing in rint media and Television right now for their mar(eting
and these are the major re6uirements for building a brand name.
<actor 2 or the rice factor is a very imortant factor which includes discounts%
schemes% customer meets and sare arts cost. This is an imortant arameter which
the customer loo(s for as nowadays in times of inflation and rising interest rates%
ricing can be a differentiating factor. Tata 'otors% at resent% does not give
discounts and does not have schemes. Customer meets have also reduced.
<actor : or the differentiation factor is the most imortant factor nowadays as this is
what customers are loo(ing for. Customers want to be made feel secial by roviding
e0tra services such as better financing otions% roduct feature addition such as &C
and better design. &lso% customers want dealers to be resonsive and offer a good
after sales service.
*ome of the reasons which have been identified for decrease in mar(et share of
T&T& are!
$ealers have been comlacent in their behavior and attitude towards customers. They
need to tac(le customers resectfully. They have got this sense of being in ower as
they are the dealers of a big comany T&T&.
*ervice has been a major issue for customers as customers are facing many roblems
in their tiers and warranties are not being honoured honored according to them.
8H

There is no convenience rovided to customers in terms of going to their sites and
servicing vehicles.
Customers are so uset with the service stations that they have their own wor(shos
and mechanics for their vehicles.
There is very little awareness about annual maintenance contract and other schemes
such as Tata $elight which rovides accidental insurance cover. $ealers do not feel
the need to ma(e customers aware.
$ealers are never having enough stoc( of tiers at hand. That is forcing customers to
go to cometition.
Technically also T&T& is not as strong as it claims% &', has got better features
than T&T& 2327 which is heling customers ma(e more money.
&', has only one model of their tier 2327 offering bogie susension and a 5
seed gear bo0 as comared to T&T& having both models straight and bogie and
Foth 5 seed and 8 seeds. "oor awareness about T&T& bogie susension is one of
the reasons for failure. 'ost customers are using normal susension which is not
successful in their alications. -ence it has more wear and tear leading to more
e0enses.
&', is offering a 28 cum bo0 as comared to 24 cum bo0 by T&T& by which the
transorter can load more er tri. &lso they are offering models having either M< or
>aton gear bo0. T&T& models are facing roblems in their gear bo0 as well as of
oor gradeability. &lso they have rovided &C which has increased the driver/s
efficiency.
&', is a new comany which is enetrating the mar(et so the ricing mechanism
they are using is enetration ricing .They are also offering discounts.
!hapter 11
//. Recommendations
87

The above oints have been concluded based on the roer analysis of customer data. Fased
on the above results and conclusion these are some of the suggestion or recommendations to
imrove Tata/s 23 tonne mar(et share in <aridabad and *ohna!
*tarting from the dealers end as they are the face of the comany% there should be a
dealer sales e0ecutive ositioned at every dealershi only dedicated to Truc(s and
tiers. It should be made mandatory for dealers to hire an e0ecutive for every
roduct. Currently there are many dealers who are not having a dedicated e0ecutive
for truc(s. They are relying on the fact that customers will themselves come and buy
the vehicle.
"roer fundamental training should be rovided to them at regular intervals to (ee
them udated. Territory sales managers should see to it that $*> reorts to them via
hone or meet them on alternate days. This ste will definitely be helful increasing
the reach of the comany. &s we have seen majority of comany/s sales have been
affected due to lac( of awareness. Territory sales manager should suort $*>/s by
giving them roer incentives for converting leads into orders. There have been
roblems regarding awareness in areas such as =uh and 'ewat as nobody from Tata
'otors has ever gone into that area. &', is ta(ing advantage of this and selling
their vehicle there.
=ow coming to the service% customers are ma(ing their own wor(shos instead of
coming to T&**. It is because they feel that T&** e0ecutives will cheat them and
will demand a lot of money. *ervice staff is correct in a way since customers overload
and increase their body si+e that forces them to cancel warranties. To coe with this
there should be regular driver trainings at the nearby service stations to tell drivers
and owners that by overloading their tiers% the life of tiers is being reduced.
There is a ga between mindset of the customer and the comany. The comany
should hold regular awareness camaigns by bringing customers to T&** and
showing them the roer driving techni6ues which will minimi+e their service cost.
85

,henever a customer buys a roduct% the owner should be given a comlete detailed
boo(let showing the (ms after which oil has to be changed. ?egular reminders can be
given by the service staff by calling customers in their area about their oil chec(s.
There should be a roer mechanism for charging customers while changing oils. The
first oil change should be done free of cost. This will instill faith and trust in
customers.
"roer service calendars% "arts which come under warranty and arts which do not
come under warranty should be clearly mentioned in the boo(let rovided. The
language used should be -indi so that transorters can understand instructions easily.
*ervice e0enses are the ones which any transorter will li(e to minimi+e. T&T& is
currently offering &'C for tiers. Customers ercetion of an &'C is that once he
ays for &'C all the sare arts and service rovided to them will be free. Fut only
regular servicing of imortant aggregates are covered under it. In an &'C customers
have to ay at the starting of the year the full amount re6uired based on the (ms they
will travel. It is around 8A aise er (ilometer for 2327 tier. 'ore sare arts
should be covered under &'C so that they can benefit customers. It is not necessary
to give full refund but a :AC4A9 discount on some imortant arts such as leaflets and
brushes should be rovided under &'C. This will also increase revenues for T&** as
customers will buy sare arts from them instead of local shos.
Currently customers face many day to day roblems while travelling on rough
terrains and at their sites. & roer D=C?D&$ and D=C*IT> assistance team should
be formed by the comany in every region. ,henever there is any tye of brea(age in
tiers% technicians should go there and solve the roblem. If it is not a major
roblem% it should be done for free and if it is a big roblem% customers can be
charged on site. Currently T&T& is offering service ac(s roviding this service but
HA

customers are not aware about it. It should be T&**/s and dealers resonsibility to
rovide a toll free number for this assistance to every customer.
<rom the mar(eting oint of view% T&T& has never been much interested in
advertising their commercial vehicles. =ow as the cometition is rising% with new
comanies coming in% T&T& has to reosition its new roducts by advertising
camaigns. They should advertise on television mainly regional channels. They
should also advertise about their roducts and dealershis in regional -indi
newsaers. &sho( )eyland and 'ahindra =avistar are advertising on TV and have
signed u Frand ambassadors li(e '* $honi.
$ealers should be continuously running camaigns such as free oil chec(s and free
mileage chec(s. There should be regular customer meets in which customers should
be called and free buffet and drin(s should be rovided. In these customer meets
along with food% the comany can advertise their roducts.
& list of all the cometition/s customers should be formed and they should be visited
and invited to visit lants in )uc(now or Eamshedur to show the benefits Tata
tiers have.
Tata 'otors dealers should also hel customers by getting them a good finance deal
for their tier. &ll the customers buy vehicles on credit basis. There are many ban(s
which rovide financing otions. Tata 'otors finance is a subsidiary which has been
formed for CV financing% but the rates they are roviding are not cometitive. They
are giving loans at an I?? of around 24C23 9 which is on the higher side as
comared to what rivate ban(s and other =F<C/s are offering. Tata 'otors can have
tie us or T'< can rovide loans with customi+ed installments. 'onsoons are a time
when tiers are not being used by customers and it is a dull eriod for their business.
H2

In this eriod Customers should be allowed to s(i two monthly installments. This
will hel them a lot and will instill faith in the comany.
There should be offers for loyal customers such as discounts and free gifts should be
given to them. T&T& 'otors should do some merchandising by getting calendars and
diaries rinted and these can be given as to(ens to customers. These small gestures
will hel in maintaining loyalty and also increasing awareness. *mall gestures such as
getting their comany name rinted on the truc( body and then delivering the vehicle
to customers is also a good idea.
&s mileage is becoming a big roblem nowadays% and with the fear of diesel rices
being deregulated% it can have a great imact on customers. T&T& currently rovides
around 2A litres of diesel free when the customer buys the roduct. They should give
couons worth ?s. 2AAA to every (ey customer after every 8 months or so to retain
customers. -JB=$&I has come u with a scheme called etrol rice lock scheme
for its cars. The same can be done by T&T& 'otors regarding its $iesel commercial
vehicles. It will hel customers get diesel at the same rice at a selected etrol um
for the ne0t one year. This will definitely imact the customers mind.
They can get into tie us with lubricant and tyre comanies such as '?<% &ollo and
Castrol so that both comanies can mutually rofit. T&T& $ealers can have tie us
with local distributors of these comanies. <or e0amle T&T& dealers can
recommend these comanies names for free alignments and lubrication by giving
customers couons.
Currently Tata is having a rogram called T&T& $elight by which customers can
earn oints by buying T&T& vehicles or sare arts and it can later retrieve these
oints in terms of money at comany/s service station T&** when the truc( gets
serviced (2 "ointR 3 ?s. Dff).The comany can have tie us with comanies selling
tyres% lubricants and other basic arts used in a tier. <or e0amle customers can
earn 3AA oints by buying one '?< tyre and then retrieve the couon while servicing
H2

at T&**. This way both comanies will gain and revenues of T&** as well as
customer loyalty will increase.
Technically% also% T&T& is far from what it claims. Its major cometition &', has
a better body and a stylish design which also attracts customers. It is also roviding
&C in the cabin. It is the first comany to do so in the Indian 'ar(et. This might not
be the major reason for its selling but yes it has changed the customer ercetion over
the years. It increases driver/s efficiency and has no major effect on mileage. T&T&
should imrove their design and body. &lso% they can at least rovide an otion for an
&C in the cabin at a little higher cost. Felow are the hotograhs of both the tiers%
and the difference is clear!

T&T& 2327 &', 2327
Customers have a common comlaint that they have to increase their leaflets in the
front susension when they buy a new T&T& tier to give it more strength. This
costs them a lot. They can also come u with more leaflets in the front susension so
as to cut customers costs.
The cabin of T&T& tiers do not have sleeing rovision for the driver and has
only one seat. Cabin ergonomics should be made better by comany. $rivers comfort
should also be loo(ed after. &', is roviding rovision for sleeing in the cabin.

H:

'!'! 1</B ca,in
T&T& 2327 tiers should come with a 28 cum body to load more weight.
Currently they are coming with a 24 cum body. This will rovide better oerating
economics to customer.
Fogie susension of T&T& tiers is not a hit as rubber or trunion brushes used in
the susension brea(s easily when used on rough terrains.
Dne major suggestion I would li(e to give to T&T& 'otors is that they should
ram u their roduction at the "&=T=&#&? lant for '1-CV/s as that area is
an e0cise free +one. It will hel them in giving customers advantage of lower rices
even when e0cise duty rates fluctuate.
H4

!hapter 12
/1. (Chi,its
/1./ Auestionnaire
This is the detailed 6uestionnaire which was formed and then the resonses by customers
were shifted accordingly to #oogle $ocs which heled in the roer analysis.
H3


H8

M!R>('I6G !6D '(C"6IC!+ I**U(*
HH

!M= &(6(FI'* )%(R '!'! 1</B
M!F)R '(C"6IC!+ P!R!M('(R*
H7

Ma-or Parameters that affect the urchase decision
Auestion on .hich Factor !nalysis .as erformed
?ate the following statements according to your agreement with them
H5


/4. References
Tata 'otors $ealers and Vendors "ortal ( Intranet database Df Tata 'otors)
7A

*ome of the websites that rovided the data are!
www.tatamotors.com G T&T& 'DTD?* ,ebsite
www.siamindia.comC *ociety Df Indian &utomobile 'anufacturers
www.icra.in G Investment credit rating agency
www.crisil.in GCredit rating and information services of India )imited
www.tatades.com G Tata deartment of economics and statistics
www.mosi.nic.in G 'inistry of *tatistics
www.fada.com G <ederation of automobile dealers association.
+inks and Files that rovided the secondary data
www. tatamotors .comLinvestorsLdfL...L ,usiness CRevie. C<JC22C22.dfC
Fusiness review &nnual reort and snashots of <inancials of Tata 'otors for
<J22C22% T&T& $>*
htt!LLwww.icra.inL<ilesLtic(erLIndian92ACV92AIndustryC&n92ABdate.dfC
?eort on Indian CV industry G @uarterly ?eview $ec 2A22% IC?& and *I&'
htt!LLmosi.nic.inLmosiSnewL*iteLIndiaS*tatistics.as0K
statusR21menuSidR24C &nnual review of statistics such as #$"% II" etc % 2A22%
'inistry of *tatistics and 'inistry of Commerce% #overnment of India
htt!LLwww.crisil.comLdfLresearchLresearchCindustryCinformationCreortC
commercialCvehiclesCautomobilesCcontents.df C &nnual ?eort on Indian
Commercial Vehicle Industry%2A22% C?I*I) .
*ome of the ,ooks that .ere referred for Market research and Factor
!nalysis :
'&)-DT?&% =&?>*- ;.% 2AA7. Marketing Research an applied orientation.
(<ifth >dition)% "-I )earning "rivate )imited.
#D?*BC-% ?ichard ).% 2A22. <actor &nalysis (2nd edition)%Te0as "ress
)imited.
;otler% "hili% 2AA7. 'ar(eting 'anagement (4
th
edition)
/:. !endiC
/:./ Market *hare !nalysis
72

Tata 'otors is one of the (ey layers in the commercial vehicle industry and has loyal set of
customer base. It is the mar(et leader in )CV segment and faces stiff cometition from other
layers li(e &sho( )eyland% >IC->?% &',% '&= etc.
'ar(et *hare of 'ajor Truc( 'anufacturers in all the truc( segments is shown below!


Grah 1/: Market *hare )f 'ata Motors as comared to cometition )verall
Tata 'otors )imited is the most dominant layer in the mar(et with 82.2 9 'ar(et *hare
with &sho( )eyland at =o. 2.
/:.1 'echnical *ecifications of '!'! 1</B and !M= 1</B
'!'! 1</B
!M= 1</B 'P 'echnical *ecs
72

/<.Glossary of !,,reviations
!MC3 !nnual Maintenance Contract
7:

!M=3!sia Motor =orks
CRDI3 Common Rail Direct In-ection
CRI*I+3 Credit Rating and Information *ervices of India +imited
C*)3 Central *tatistics )rganisation
C%3 Commercial %ehicles
C%&U3 Commercial %ehicle &usiness UnitG
D*(3 Dealer *ales (Cecutive
F!D!3 Federation of !utomo,ile dealers association
F83 Financial 8ear
GDP3 Gross Domestic Product
G%=3 Gross %ehicle =eight
ICR!3 Investment Credit Rating !gency
IIP3 IndeC of Industrial Production
I6R3 Indian Ruee
IRR3 Internal Rate of Return
>M)3 >aiser Meyer )lkin
+C%3 +ight Commercial %ehicles
MH"C%Ds3 Medium and "eavy Commercial %ehicles
M)*3 Ministry of *tatistics
6&FC3 6ational &anking Finance Cororation
6"!I3 6ational "igh.ay !uthority )f India
6"DP3 6ational "igh.ay Develoment Pro-ect
6MDP3 6ational Maritime Develoment Programme rogram
68*(3 6e. 8ork *tock (Cchange
)(M3 )riginal (@uiment Manufacturer
AFD3 Auality Function Deloyment
*I!M3 *ociety of Indian !utomo,ile Manufacturers
'!**3 'ata !uthorised *ervice *tations
'(+C)3 'ata (lectronic and +ocomotive Comany +imited
'I%3 'otal Industrial %olume
'*M3 'erritory *ales Manager
74