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Consumer Perception and Future Potential For Tata Cars
Consumer Perception and Future Potential For Tata Cars
SYNOPSIS
ON
CONSUMER PERCEPTION AND FUTURE
POTENTIAL FOR TATA CARS
The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-
year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of
commercial vehicles in 2017.
India is also a prominent auto exporter and has strong export growth expectations for the near future.
Automobile exports grew 15.54 per cent during April 2018-February 2019. It is expected to grow at a
CAGR of 3.05 per cent during 2016-2026. In addition, several initiatives by the Government of India
and the major automobile players in the Indian market are expected to make India a leader in the two-
wheeler and four wheeler market in the world by 2020
Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800
to TATA nano. The industry is highly competitive with a number of global and Indian companies
present today. It is projected to be the third largest auto industry by 2030 and just behind to US &
China, according to a report.
Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler & four
wheeler segment. The domestic two-wheeler market is dominated by Indian as well as foreign players
such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata
Motors are the leading passenger car manufacturers in the country. And India is considered as strategic
market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered by players like Tata Motors,
Ashok Leyland, Volvo, Force Motors, Eicher Motors etc.
The major players have not left any stone unturned to be global. Major of the players have got into the
merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero with Honda, Tata with
Fiat, Mahindra with Renault, Force Motors with Mann.
Key Facts:
The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj
Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle the
customers’ needs to a large extent.
Not only the Indian companies but also the international car manufacturing companies are focusing on
compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile
companies are coming up with financial schemes such as easy EMI repayment systems to boost sales.
3. Tata Group
5. Mahindra Group
6. Ashok Leyland
Tata Motors Limited is India's largest automobile company, with consolidated revenues 294,243Cr
in 2018.
Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an Indian
multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India. It
is a subsidiary of Tata Group, an Indian conglomerate. Its products include passenger cars, trucks,
vans, coaches, buses, sports cars, construction equipment and military vehicles.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,
Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, Great Britain and
Thailand. It has research and development centres in Pune, Jamshedpur, Lucknow, and Dharwad,
India and in South Korea, Great Britain and Spain. Tata Motors' principal subsidiaries purchased the
English premium car maker Jaguar Land Rover (the maker of Jaguar and Land Rover cars) and the
South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing
joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment manufacturing joint
venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat Chrysler
which manufactures automotive components and Fiat Chrysler and Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors entered
the passenger vehicle market in 1988 with the launch of the Tata Mobile followed by the Tata Sierra
in 1991, becoming the first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile. In 1998, Tata launched the first fully indigenous Indian passenger car, the
Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired the South
Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and purchased Jaguar
Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. The
company is ranked 226th on the Fortune Global 500 list of the world's biggest corporations as of
2016.
On 17 January 2017 was appointed chairman of the company Tata Group. Tata Motors increases its
UV market share to over 8% in FY2019
Various Products of TATA Motors:
2. The global automobile industry is undergoing a structural shift due to technology and market
disruption, evolving consumer preferences, market cyclicality, regulatory overhauls and
geopolitical uncertainty and the situation calls for "Specific Intervention" to remain sustainably
profitable.
3. Tata Motor’s owned Jaguar Land Rover which accounts for over 80% of company's consolidated
revenues is facing varied risks across its key markets. While North American market is seeing a
decline, the rising anti-diesel voice in Europe has hit demand and the uncertainty over Brexit in
its home market is still looming large in front of the company.
4. Availability of product: "Lastly we had had some legacy passenger car product lines" which
had a large negative contribution and suffered from large discounts in the marketplace further
eroding market share and brand perception,"
5. Political uncertainty: Stable governments are a rarity in the world. Nepal has seen 38 Prime
Ministers so far as compared to 16 in India. With every change of government there are changes
in the Foreign Trade Policies and we have to align with new policies frequently.
OBJECTIVE OF THE STUDY
To know what people perceive and thinking about Tata cars and its products.
To study consumer awareness and perception about the brand repositioning strategies of Tata
cars.
1. From the research analysis we can find that, what’s a person first look in a dream car.
2. The study can be used to know the perception of consumer about Tata Motors.
3. The present study can be extended to access the present marketing condition of Indian
automobile sector.
4. The study can be used to design a proper product, price, place and promotional strategy for the
market.
5. From the present study we can know the market share of different products and accordingly
This study can be applied to find out an effective distribution channel to enhance the sale of various
The primary purpose of this study is to explore the performance of different attributes in automobiles
in giving satisfaction to the consumers by comparing the same performance with the performance of
the product attributes when it was brand new and how these attributes performance satisfaction
affecting consumers future purchase decision. Consumer satisfaction is a central concept in modern
marketing thought and practice. The marketing concept emphasizes delivering satisfaction to
consumers and obtaining profits in return. As a result, overall quality of life is expected to be
enhanced. Thus, consumer satisfaction is crucial to meeting various needs of consumers, business, and
society. Data collected from the respondents in Dehradun city who are actually using the car.
Consumers’ satisfaction for these attributes (maintenance cost, fuel efficiency, comfortness, brake
safety, vibration, pollution/emission, engine sound, ignition, battery performance, horn, wiper
performance, pickup and light) are measured by using seven point interval scale. The product attributes
used to measure satisfaction have shown a little variation in their performance when the consumers’
compare the same performance with the car when it was brand new. Out of total thirteen attributes
consumers are highly satisfied with the performance of attributes like ignition, vibration, wiper
performance and pickup. It indicates that performance of these attributes has not been changed with
time. It has been observed that product performance significantly influencing the consumers’ future
purchase decision. The product attributes such as pollution, ignition, battery performance and pickup
are highly influencing the consumers ‘future purchase decision.
Assael (2008) satisfaction occurs when consumer expectation are met or exceeded and the purchases
decision is reinforced. Satisfaction reinforces positive attitudes toward the brand leading to a greater
likelihood that the consumer will repurchase the same brand. Dissatisfaction results when consumer
expectations are not met. La Tour and Peat (1979) if obtained performance is less than expected,
consumers will be dissatisfied. On the other hand, if their expectations are met or exceeded, they will
be satisfied. Model of satisfaction where overall satisfaction is a linearly additive function of the
outcome of attribute level comparisons and each outcome is weighted by its stated importance. Thus,
the more importance an attribute the higher its impact on overall satisfaction.
Day (1983) satisfaction is defined as the consumer’s evaluation of product performance as a positive
or negative feeling in response to, or following a specific consumption experience. Churchill and
Surprenant (1982) an individual’s expectations are (1) positively disconfirmed when performance
exceeds expectations; (2) negatively disconfirmed when performance is below expectation; or (3)
confirmed when performance is approximately equal to expectations. Westbrook and Oliver (1991)
have pointed out that satisfaction is an emotional response and should be reflected through measures of
emotions.
Dick, Hausknecht and Wilkie (1995) has said satisfaction is not simply a feeling, it is a feeling with
respect to a particular object or referent whereas Aiello and Czepiel(1979) have made an interesting
distinction among three types of satisfaction: “system satisfaction” (based on operation of the
institutional marketing system), “enterprise satisfaction” (based on complex product/service
organizations such as retail stores), and “product/service satisfaction” (based on the consumption of a
specific product or service.
Manish Kumar Srivastava, A.K. Tiwari , studies the consumer behaviour for A3 segment vehicles
such as Honda City and SX4 in a particular region Jaipur. Data collected from 100 respondents 50
each from Honda City and Maruti SX4. Respondents were considered from various backgrounds like
Gender, Occupation, Income class. Also customer purchase parameters considered for study are Price,
Safety, Comfort, Power & Pickup, Mileage, Max Speed, Styling, After Sales Service, Brand Name and
Spare Parts Cost. Based on above parameters and analysis made in this it revealed that, while
purchasing A3 segment car Customer give much importance to Safty, Brand Name and seating and
driving comfort. Also word of mouth publicity and advertisements in car magazines are more effective
communication medium for promotion of Cars.
Prasanna Mohan Raj , studied the factors influencing customers brand preference of the economy
segment SUV’s and MUV’s. Data collection was made through direct interaction and customer
intercept survey using questionnaire. Descriptive analysis was used to transform data into understand
format and factor analysis was used for identification of factors influencing customer preference. In
light of study findings, the preference of a given brand can be explained in terms of six factors namely
Product reliability, monetary factor, trendy appeal, frequency of non-price promotions offered,
trustworthiness and customer feeling or association towards brand. There is need for marketers to take
these factors into consideration when crafting product innovations in the SUV segment of Automobile
market.
Nikhil Monga, Bhuvender Chaudhary, Saurabh Tripathi , this research attempts to answer some of
the questions regarding brand personality of selected cars in India by conducting the market research.
This personality sketching will help in knowing what a customer (or a potential customer) thinks about
a given brand of car and what are the possible factors guiding a possible purchase. Similarly, the idea
of measuring the customer satisfaction will serve the same purpose of determining the customer
perception. Thus, by measuring the willingness of exciting users of a car to recommend it to others
will help the car manufacturers to chock out the entire customer Buying Behaviour. The study shows
that brand perception is something which starts building up before a car is purchased and goes on with
its use and is reflected in the recommendations. The customer makes to his acquaintances for the same
car. Also it is seen that the customer might not be using the car still he holds the perceptions about it.
Brand personality of a car is enforced by the sellers in the mind-sets of the customers and customers
reacts to it by forming their perception about the car and this reflects in the overall brand image of the
car. So brand image and brand personality complement each other and the brand perception aids the
building of brand images. As per the study findings, dealers play a very important role in building up
the brand perceptions of the cars.
K. Vidyavathi , the study throws light on various aspects that the manufactures should concentrate on
to attract the prospective buyers. The demand for the small Automobile segment is increasing because
of the growing number of nuclear families as well as parking problems. Hence the manufactures
should find out the needs, wants, tastes and preferences of consumers in order to design the products.
Also fuel economy and driving comfort are the most important parameters followed by availability of
spares and their price.
Balakrishnan Menon, Jagathy Raj V.P., study findings shows that due to price difference in
Gasoline and Diesel, about one third of the car owners were having diesel vehicles. The research
results showed that about one seventh of car for the city drive for family usage, while using the second
car for office and business usage. Foreign brand cars show clear preference in the Kerala car market.
Also it was observed that in the information gathering and consumer purchase initiation stage, TV
commercials on car models and brands, search on internet website of the manufacturer and visit to
dealers / distributors were the prime sources where customers gathers information on car models.
Ramita Verma, Shubhkamana Rathore , studied the luxury car segment of India. Researches and
studies have revealed that the luxury car market is growing at a steady speed of 25% per annum with
more and more numbers of luxury cars entering Indian car market. Luxury cars are preferred by HNI
(High Net worth Individuals). HNI wants to differentiate themselves from crowd for various reasons.
Change in attitude of the customer accounts for the sudden acceleration in the Luxury car Market in
India, as the emphasis has been shifted from price consideration and affordability to design, quality
and pleasure. Study also throws light on market drivers of luxury cars like
Socio cultural factors such as Lifestyle and preferences of people which impact their choice of types
of automobiles. Social norms that impact the decision to own and use automobiles versus other means
of transport.
RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work. This includes the
overall research design, data collection method, the field survey and the analysis of data.
PRIMARY:
For my survey primary data will have been used as a questionnaire to collect the data.
SECONDARY:
The secondary data will have been collect from the following modes:
Magazines
Books
Newspaper
Data through internet sources
RESEARCH DESIGN:
Research Design will the arrangement for condition for data collection & analysis of data in a manner
that aims to combined relevance to research purpose with economy in procedure.
A research design is a master plan or model for the conduct of formal investigation. It is blue print that
is followed in completing study.
The research will a descriptive research. This is descriptive in nature because study is focus on fact
investigation in a well-structured from and will based on primary data.
RESEARCH PLAN
For completing my study I will gone for sample study because looking at the size of population & the
time limitation it will not convenient for me to cover entire population. Hence, I will be gone for
sample study rather than census study.
SAMPLING PLAN:
A sample design will a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure that researcher would adopt in selecting items to be inched in the sample
i.e. the size of sample. Sampling plan is determined before data collection.
STEPS IN SAMPLING PLAN:
SAMPLING FRAME:
The list of sampling units from which sample is taken is called sampling frame. East Delhi map will be
study thoroughly and samples will select from the place in a scattered manner to get effective result.
SAMPLING SIZE:
Total sample size will 75. (For consumer perception about TATA MOTORS) and
Total sample size will 50. (For consumer perception about exclusive showroom)
SAMPLING PROCEDURE:
The selection of respondents will accordingly to be in a right place at a right time and so the sampling
will quite easy to measure, evaluate and co-operative. It will a randomly area sampling method that
attempt to obtain the sample of convenient.
I will use Questionnaire, as the research instrument to conduct the market survey. The questionnaire
consisted closed ended questions designed in such a way that it should gather maximum information
possible.
The questionnaire will a combination of 20 questions. If choices are given it is easier for the
respondent to respond from the choices rather they think and reply also it takes lesser time. Because
the keep on responding and one has tick mark the right choice accordingly.
FIELD WORK:
I will collected the data through medium called questionnaire collecting the responses from 200 (50 for
showroom) people in all. I will do my field work in the EAST DELHI area.
After the survey we will find the Rnak of tata moters among Top 10 automobile industry.
We will find knowledge level of the sales persons and how much time spend with customer.
We will find all model and colors of Tata’s car is available in showroom or not.
We will find Tata’s showroom always offer test drive to every customer or not.
We will find Tata’s showroom providing better service after sales or not.
We will find Tata’s showroom providing better safety than other car’s manufacture or not.
We will find price of Tata’s car parts are not available everywhere or not.
We will find price of Tata’s car parts is costly than other car parts or not.
We will find the best Advertisement in mass media among television, newspapers, and
magazines.
LIMITATIONS
Since the road to improvement is never ending, so this study also suffers from certain limitations.
Some of them are as follows:
Because of illiteracy, it will a time consuming method in which continuous guidance will
required.
It is possible that the information supplied by the informants may be incorrect. So, the study
Questionnaire:-
Name
Mobile Age
Location
Dear respondents,
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
8. I feel proud whenever I see the ad for my Tata car on TV, Magazine, and Hoarding.
1 2 3 4 5
9. A new feature of Tata cars like ABS (antilock breaking system) motivates the customer to buy.
1 2 3 4 5
10. Air bag system in Tata cars gives the better safety.
1 2 3 4 5
11. Quadra jet engine of Tata cars gives an extra edge over the other cars.
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
Tata Motor`s exclusive showrooms
Name:- ………………………………………………………………………………………………………… Age ………………
Mobile no. ……………………………………………………….. Place …………………….
1 2 3 4 5
(2) Employees spent enough time with you before sales and during sales.
1 2 3 4 5
1 2 3 4 5
(4) Attractive discounts offered
1 2 3 4 5
(5) Offered a test drive
1 2 3 4 5
(6) Responds to complaints quickly
1 2 3 4 5
1 2 3 4 5
(8)Employees spent enough time with you after sales service.
1 2 3 4 5
BIBLIOGRAPHY
BOOKS
INTERNET
http://www.tata.com
http://www.tatamotors.com
http://en.wikipedia.org/wiki/Tata_motors
http://en.wikipedia.org/wiki/Tata_group
http://en.wikipedia.org/wiki/Indian_automobile_industry
http://www.carwale.com/research/cars/tata
http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull
http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull
http://www.scribd.com
http://www.thehindubusinessline.com