A RESEARCH REPORT ON

“SALES & DISTRIBUTION CHANNEL OF TATA MOTORS”

Submitted as partial fulfillment of Mini Project-I under

“MASTER OF BUSINESS ADMINISTRATION”

SUBMITTED TO: SUBMITTED BY:

Mrs. RAGI T.S AKRITI KESHARWANI
Assistant Professor MBA 1st semester
Kashi Institute of Technology Kashi Institute of Technology

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 KASHI INSTITUTE OF TECHNOLOGY
Manage by: Jain Education Society
23 km Milestone, Varanasi- Allahabad Road, Mirzamurad, Varanasi (U. P.) E-mail:
kashi.inst.tech@gmail.com Website: www.kitvns.com
Ph.- 0542- 2637777, 78Fax- 0542-263768

Date………………………

CERTIFICATE

This is to certify that AKRITI KESHARWANI of Master of Business

administration (MBA) session 2020-2021 has completed Mini Project-I on the
Topic SALES & DISTRIBUTION CHANNEL OF TATA MOTORS as
Partial fulfilment of Mini Project-I under Master of Business Administration
the Research Report submitted by him is a genuine work done by him and the
same is being submitted for evaluation.

(Name & Signature of Guide)

Date: ………….
Place: Varanasi

26
 KASHI INSTITUTE OF TECHNOLOGY
MIRZAMURAD, VARANASI

DECLARATION

I AKRITI KESHARWANI of M.B.A. 1st semester, hereby declare that the

report for Mini Project – I, entitled “SALES & DISTRIBUTION CHANNEL
OF TATA MOTORS” is a bona-fide record of my work and indebtedness to be
acknowledged work done by me, in partial fulfilment of the requirements of Mini
Project – I under MBA from KASHI INSTITUTE OF TECHNOLOGY,
MIRZAMURAD, VARANASI and has not been published anywhere else prior to
this.

(Name and Signature of the Student)

M.B.A. 1st Semester

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 ACKNOWLEDGMENTS

I would like to take this opportunity to express my profound gratitude

and deep regard to my mentor Mrs. RAGI T.S, for her exemplary
guidance, valuable feedback and constant encouragement throughout
my report work. Her perceptive criticism kept me work to make this
report in a much better way. Working under her was an extremely
experience for me.

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 PREFACE
A project research is a systematic and scientific in investigation for identifying
a specific problem or study in a particular area in the organization & thereby
analyzing the same to give the best solution.
For the fulfillment of any organizational goal it is necessary that
sales and distribution channel selection should be well planned & conveyed to
the employees in order to have transport & steady flow of the different
mechanisms of the organization.
This project is also an attempt to study the function of the
personnel department specifically with the sales and distribution channel
policies and procedures in Tata Motors.
The objective of doing the project is to collect all the necessary
information with respect to the working procedures specifically with the sales
and distribution channel & thereby to get the maximum exposure in the related
fields has given me a wider exposure.
I have applied the concept & gained knowledge learned during the
course in the practical business situations & thus have understood these
concepts in a better way. The research work has poured of immense learning for
me.
I would like to whole heartedly thank TATA MOTORS for giving
this exposure.

AKRITI KESHARWANI

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 TABLE OF CONTENT
SR NO. TOPIC PAGE
NO.
1. Company profile 6-19

2. Conceptual Discussion (sales and distribution channel) 20-25

3. Research objective 26

4. Research methodology 27-28

5. Scope of study & Facts and Findings 29

6. Conclusion and implications 30-32

7. References 33

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COMPANY PROFILE

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 COMPANY PROFILE

Tata Motors Limited is India’s largest automobile company, with consolidated revenues of
Rs.1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The Company is the world's fourth largest truck
manufacturer, and the world's third largest bus manufacturer.
The Company's over 25,000 employees are guided by the vision to be "best in the manner in
which we operate, best in the products we deliver, and best in our value system and ethics."
The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka).
Tata Motors, the first Company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain. Tata Motors is also expanding its international footprint, established
through exports since 1961. It has franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia, Senegal and South Africa.
It was Tata Motors, which developed the first indigenously developed Light Commercial
Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully
indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling
car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace,
India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as planned,
in India in March 2009. A development, which signifies a first for the global automobile
industry, the Nano brings the comfort and safety of a car within the reach of thousands of
families. The standard version has been priced at Rs.100,000 (excluding VAT and transportation
cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg space
and head room. It can comfortably seat four persons. Its mono-volume design will set a new

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benchmark among small cars. Its safety performance exceeds regulatory requirements in India.
Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall
pollutants, it has a lower pollution level than two-wheelers being manufactured in India today.
The lean design strategy has helped minimize weight, which helps maximize performance per
unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures
that the car has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint.
Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives of
more than a million citizens. The Company's support on education and employability is focused
on youth and women. They range from schools to technical education institutes to actual
facilitation of income generation. In health, our intervention is in both preventive and curative
healthcare. The goal of environment protection is achieved through tree plantation, conserving
water and creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care. 
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

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Board of Directors
Mr. Ratan N. Tata (Chairman) Mr. Subodh Bhargava
Mr. V. K. Jairath Mr. Ravi Kant
Mr. Ranendra Sen Mr. Nusli N. Wadia
Dr. Ralf Speth Mr. S. M. Palia
Mr. Carl-Peter Forster Dr. R. A. Mashelkar
Mr. P. M. Telang Mr. Nasser Munjee

Key Management Personnel

Senior Management -
Mr. Carl-Peter Forster- Managing Director & Group CEO
Mr. P. M. Telang - Managing Director - India Operations
Mr. C. Ramakrishnan - Chief Financial Officer
Mr. Ravi Pisharody - President (CVBU)
Dr. Tim Leverton - Head (Advanced and Product Engineering)
Mr. S. B. Borwankar - Senior Vice President (Mfg Operations-CVBU)
Mr. Prabir Jha - Senior Vice President (Human Resources)
Mr. R. Ramakrishnan - Vice - President (Commercial - PCBU)
Mr. Girish Wagh - Head (Passenger Car Operations - PCBU)
Mr. R. T. Wasan - Head (International Business - CVBU)
Mr. Johnny Oommen - Head (International Business - PCBU)
Mr. H. K. Sethna - Company Secretary

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Leadership with trust
The Tata group comprises over 90 operating companies in seven business sectors:
communications and information technology, engineering, materials, services, energy, consumer
products and chemicals. The group has operations in more than 80 countries across six
continents, and its companies export products and services to 85 countries.
The total revenue of Tata companies, taken together, was $67.4 billion (around Rs319,534 crore)
in 2009-10, with 57 per cent of this coming from business outside India. Tata companies employ
around 395,000 people worldwide.
Every Tata company or enterprise operates independently. Tata Steel became the tenth-largest
steelmaker in the world after it acquired Corus, later renamed Tata Steel Europe. Tata Motors is
among the top five commercial vehicle manufacturers in the world and has recently acquired
Jaguar and Land Rover. TCS is a leading global software company, with delivery centres in the
US, UK, Hungary, Brazil, Uruguay and China, besides India. Tata Global Beverages is the
second-largest player in tea in the world. Tata Chemicals is the world’s second largest
manufacturer of soda ash and Tata Communications is one of the world’s largest wholesale voice
carriers.
Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by the spirit of nationalism. It
pioneered several industries of national importance in India: steel, power, hospitality and
airlines. In more recent times, its pioneering spirit has been showcased by companies such as
TCS, India’s first software company, and Tata Motors, which made India’s first indigenously
developed car, the Indica, in 1998 and recently unveiled the world’s lowest-cost car, the Tata
Nano.
Tata companies have always believed in returning wealth to the society they serve. Two-thirds of
the equity of Tata Sons, the Tata promoter company, is held by philanthropic trusts that have
created national institutions for science and technology, medical research, social studies and the
performing arts. Tata companies also extend social welfare activities to communities around
their industrial units. The combined development-related expenditure of the trusts and the
companies amounts to around 4 per cent of the net profits of all the Tata companies taken
together. Going forward, Tata is focusing on new technologies and innovation to drive its
business in India and internationally.

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Values and Purpose
Purpose
At the Tata group we are committed to improving the quality of life of the communities we
serve. We do this by striving for leadership and global competitiveness in the business sectors in
which we operate.
Our practice of returning to society what we earn evokes trust among consumers, employees,
shareholders and the community. We are committed to protecting this heritage of leadership with
trust through the manner in which we conduct our business.
Core values
Tata has always been values-driven. These values continue to direct the growth and business of
Tata companies. The five core Tata values underpinning the way we do business are:
Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do
must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for our colleagues
and customers around the world, and always work for the benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our day-to-
day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and with our customers
and partners around the world, building strong relationships based on tolerance, understanding
and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries, communities and
environments in which we work, always ensuring that what comes from the people goes back to
the people many times over.

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 TATA INDICA
First generation (1998–2018)

First generation

Overview

Also called Tata Indica

Tata Indica B-Line (South Africa)

Rover City Rover (United Kingdom)

Production 1998–2018

Assembly India: Maharashtra, Pune

Designer I.DE.A Institute

Body and chassis

Body style 5-door hatchback

Related Tata Indigo

Powertrain

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 Engine 1.2-L I4 (petrol)

1.4-L I4 (petrol)

1.4-L I4 (diesel)

Transmission 5-speed manual

Dimensions

Wheelbase 2,400 mm (94.5 in)

Length 3,690 mm (145.3 in)

Base: 3,675 mm (144.7 in)

Width 1,665 mm (65.6 in)

Top Version: 1,485 mm (58.5 in)

Height 1,485 mm (58.5 in)

Top Version: 1,500 mm (59.1 in)

Pre-facelift Tata Indica rear

2009 facelift Tata Indica

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2009 facelift Tata Indica rear

On 30 December 1998, Tata Motors (previously called Telco) introduced the most modern car

ever to be designed by an Indian company: the Indica. Initially introduced with the caption
"More car per car," the ad campaign focused on roomy interiors and affordability. Within a week
of its unveiling in 1999, the company received 115,000 orders. Within two years, the Indica had
become the number-one car in its segment.
Partly designed and developed by Tata Motors, it was a five-door compact hatchback with a 1.4-
L petrol/diesel inline-four engine designated internally as 475DL. This was a homegrown engine
derived from the engine used by Tata in their line of pick-ups and SUVs earlier, but with a
shortened stroke. The original engine was designated as 483DL which stood for four-cylinder
and 83-mm stroke.
The Indica offered options such as air conditioning and electric windows, which were previously
restricted to upmarket imported cars in India. Three years later, the Indica was exported to
European markets for the first time, and from 2003, the Indica was badge engineered and sold in
Great Britain by MG Rover Group as the City Rover. This vehicle ceased production in April
2005 when Rover went bankrupt, and did not resume production when Rover's new Chinese
owner Nanjing Automobile launched its own versions of the Rover range in 2007.
The outer body styling was designed by the Italian design house I.DE.A Institute, under contract
from Tata Motors, in close collaboration interaction with Tata's in-house design team. The
engine, however, was indigenous.
Since the V1 and V2, which were visually identical, Tata had applied styling updates to the
Indica in 2004, 2007 and 2012
In India, three versions were available with different trim levels.

 Indica V2 – 1.4-L diesel (naturally aspirated engine (NA) in the DLE and DLS;
turbocharged option in the DLS (TC); turbocharged and intercooled (TCIC Engine) DLG
and DLX; Dior engine offered in the DLS and DLG)
 Indica V2 Petrol – 1.4-L petrol carbureted (Indica 2000) 1.4-L petrol with Hitachi ECU,
1.2-L and 1.4-L petrol with Bosch ECU (Indica Seta), 1.2-L LPG (GLE and GLS versions
only)
 Indica – 1.4-L naturally aspirated diesel (DL and DLE), a low-price car with the same
framework but fewer features and luxuries, aimed at cab and contract transport business
fleets. It is popular among transport business people.
This range of accessories was available for the Indica:

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 Power steering
 HVAC – heater, ventilation, and air conditioning
 Turbocharger and intercooler
 Alloy wheels
 Power windows
 Central locking with remote keyless entry
 Ventilated disc brakes
 Four-spoke steering wheel
 Tinted windscreen
 Powerful fog lamps
 Rear spoiler with integrated LED stop (brake) lamp
 Luxurious beige/black interiors
 Night-adjust rear-view mirror
 Chrome tip on silencer, chrome lining on grill and bonnet
 Audio warnings – driver/passenger seat belt warning, door open warning
 Tachometer (selected models)
 Child lock on rear doors (selected models)
 Alloy pedals

Safari Stormed (2012–present)

2012 Tata Safari Stormed

2016 Tata Safari Stormed interior

Tata Safari Stormed was unveiled in January 2012 during the 11th Auto Expo 2012 and was
launched in October 2012. The Safari Stormed is a facelift version of the previous Safari: the
main changes concern new front and rear lights, new grille and redesigned bumpers, the rear
spare wheel has been moved under the floor and the tailgate is new.

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SWOT:
STRENTHS
 The internationalization strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the new
market. The benefit is that Tata has been able to exchange expertise. For example, after
the Daewoo acquisition the Indian company leaned work discipline and how to get the
final product ‘right first time.’
 The company has a strategy in place for the next stage of its expansion. Not only is it
focusing upon new products and acquisitions, but it also has a programmer of intensive
management development in place in order to establish its leaders for tomorrow.
 The company has had a successful alliance with Italian mass producer Fiat since 2006.
This has enhanced the product portfolio for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007,

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 and the companies have an agreement to build a pick-up targeted at Central and South
America.

Weaknesses
 The company’s passenger car products are based upon 3rd and 4th generation platforms,
which put Tata Motors Limited at a disadvantage with competing car manufacturers.
 Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not
got a foothold in the luxury car segment in its domestic, Indian market. Is the brand
associated with commercial vehicles and low-cost passenger cars to the extent that it has
isolated itself from lucrative segments in a more aspiring India?
 One weakness which is often not recognised is that in English the word ‘tat’ means
rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe
not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and
strengths).

Opportunities
 In the summer of 2008 Tata Motor’s announced that it had successfully purchased the
Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the
World’s luxury car brand have been added to its portfolio of brands, and will
undoubtedly off the company the chance to market vehicles in the luxury segments.
 Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004
for around USD $16 million.
 Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst
the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the
answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar
models will cost up to 85 times more than a standard Nano!
 The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally friendly
transport alternatives, is now the right time to move into this segment? The answer to
this question (and the one above) is that new and emerging industrial nations such as
India, South Korea and China will have a thirst for low-cost passenger and commercial
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 vehicles. These are the opportunities. However, the company has put in place a very
proactive Corporate Social Responsibility (CSR) committee to address potential
strategies that will make is operations more sustainable.

Threats
 Other competing car manufacturers have been in the passenger car business for 40, 50 or
more years. Therefore, Tata Motors Limited has to catch up in terms of quality and lean
production.
 Sustainability and environmentalism could mean extra costs for this low-cost producer.
This could impact its underpinning competitive advantage. Obviously, as Tata globalizes
and buys into other brands this problem could be alleviated.
 Since the company has focused upon the commercial and small vehicle segments, it has
left itself open to competition from overseas companies for the emerging Indian luxury
segments. For example, ICICI bank and DaimlerChrysler have invested in a new Pune-based
plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford, Honda and Toyota. In fact, the entire Indian
market has become a target for other global competitors including Maruti Udyog, General
Motors, Ford and others.

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 CONCEPTUAL DISCUSSION

Sales and Distribution Channel of Tata Motors Ltd

Promotion is an intricate part of market mix. Marketing mix includes product, price,
place/distribution and promotion (4 Ps). The activities of the first three Ps -- product planning,
pricing, and distribution -- are performed mainly within the firm or between the firm and its
marketing “partners.” With promotional activities, a firm communicates directly with potential
customers.
Promotion is an attempt to influence. Promotional activities are designed to inform, persuade, or
remind the market of the firm and its products and ultimately to influence consumers’ feelings,
beliefs, and behavior. A successful promotion program should include all the communication
tools that can deliver a message to a target audience. A promotion program can include five
components: advertising, sales promotion, public relations, sales force, and direct marketing.

Advertising.
Advertising is a paid form of no personal communication by an identified sponsor. The mass
media used include TV, radio, magazine, billboards, newspapers, and direct mailing. Advertising
is the most effective tool for building awareness of a company, product or service. It is also
relatively inexpensive based on the cost per thousand people reached. However, broadcasting a
message to everyone through media such as television is not very targeted. The most effective
advertising is narrowly targeted and uses media targeting specific audience interests. The
drawback is that most advertising does not deliver sales quickly. It works mostly by changing
minds, not changing behaviors.

Sales Promotion.
On the other hand, sales promotion changes behavior. Customers will act upon a sale, an offer, or
a chance to win something. Sales promotion activities include coupons, discounts, in-store
displays, trade shows, samples, in-store demonstrations, and contests. A company can also
sponsor trade promotion, in which supermarkets or other retailers are given discounts to promote

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a specific product. However, most incentives are short-term in nature. In addition, sales
promotion targeting consumers weakens consumer brand loyalty. Consumers increasingly expect
to buy products below listed prices. Consumers simply buy whichever brand is on sale during a
particular week and switch to a competing brand when it goes on sale. The only situation where
sales promotion is profitable is when the company truly has a superior product paired with low
product awareness. In this case, sales promotion will get people to try the product, and they will
be less likely to switch to a competing brand when sales are over.

Public Relations.
Because sales promotion often loses money, and advertising is becoming less effective and
expensive, companies should investigate the impact of marketing public relations. Marketing
public relations is designed to create a positive image of the company to a target market. It uses
non-paid communication by presenting commercially significant news in a published medium or
obtaining favorable presentation of the business or product on radio or television.
Tools to create publicity include publications (reports and brochures); events (sponsoring
activities and trade shows); news (favorable stories about the company, its people, and products);
community involvement (time or money invested in local interests); identity media (business
cards, stationary, and signs); lobbying activity; and social responsibility to the environment and
society.

Sales Force.
The more complex the product or service, the more necessary to use sales people who can
answer questions and help customers. What is important is not the sales person’s costs but
his/her costs in relation to the sales he/she generated. A top sales person can often sell five to ten
times more than an average sales person. Companies trying to save money by paying less to the
sales people often have the highest costs-to-sales ratio with high turnover rate and high training
costs.
In addition to hiring good people, a company should help its sales people be more productive by
providing them sales tools, i.e., computers, fax machine, and e-mail, and giving them easy access
to company data to help them become more informed. Sales people offer the advantage of one-

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on-one selling. They should be trained to consciously find out what customers want and alert the
company.

Direct Marketing.
Direct marketing by mail, phone, or personal contact can be used to
effectively communicate with a very narrowly targeted group. Lists for direct marketing
purposes can be purchased from different sources. However, for direct marketing to be effective,
it is important to maintain a comprehensive customer database in the company and manage the
database in a way that it can be divided into subcategories for different promotional programs.
All the promotional activities must be integrated to deliver a consistent and positive message. A
multi-media promotion campaign is usually more effective than any promotional activity alone.
For example, if a company is launching a new product or program, it can contact the media to get
free press and then run an advertisement offering information, combined with offering sales
promotion, direct marketing by mail or phone, and product demonstration or a visit by sales
people.

Segmentation
It is essentially the identification of subsets of buyers within a market who share similar needs
and who demonstrate similar buyer behavior. The world is made up from billions of buyers with
their own sets of needs and behavior. Segmentation aims to match groups of purchasers with the
same set of needs and buyer behavior. Such a group is known as a 'segment'.
Segmentation is a form of critical evaluation rather than a prescribed process or system, and
hence no two markets are defined and segmented in the same way. However, there are a number
of underpinning criteria that assist us with segmentation:
• Is the segment viable? Can we make a profit from it?
• Is the segment accessible? How easy is it for us to get into the segment?
• Is the segment measurable? Can we obtain realistic data to consider its potential?
There are many ways that a segment can be considered. For example, the auto market could be
segmented by: driver age, engine size, model type, cost, and so on. However, the more general
bases include:
• by geography - such as where in the world was the product bought.

26
• by psychographics - such as lifestyle or beliefs.
• by socio-cultural factors - such as class.
• by demography - such as age, sex, and so on.
A company will evaluate each segment based upon potential business success. Opportunities will
depend upon factors such as: the potential growth of the segment the state of competitive rivalry
within the segment how much profit the segment will deliver how big the segment is how the
segment fits with the current direction of the company and its vision.
Positioning
A product's position is how potential buyers see the product. Positioning is expressed relative to
the position of competitors. Positioning is something (perception) that happens in the minds of
the target market. It is the aggregate perception the market has of a particular company, product
or service in relation to their perceptions of the competitors in the same category. It will happen
whether or not a company's management is proactive, reactive or passive about the on-going
process of evolving a position. But a company can positively influence the perceptions through
enlightened strategic actions.

DISTRIBUTION CHANNEL
Distribution in marketing context means the transfer of goods from producer to consumer, as we
all known in a distribution system, we are to first find out what kind of distribution channels is to
be selected so as the firm can get a convenient supply and economic maintenance of profit.
In Tata Motor Industry, where flow of goods, matters a lot, it is must to consider following
points very carefully.
Selection of channels for distribution
Warehousing and transport.
Operational research
Logistic Mix

SELECTION OF CHANNEL OF DISTRIBUTION

For selecting a channel for distribution following point are to be considered.

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Once a consumer does not find it in retail shop, head may instantly choose the another, at lease
for trial and here beings the decrease of market share. Tata Motor should not only be always
available in retail ships but be visible to consumer also.
Financial position of manufacturer: - The fewer the number of organization in the chain, smaller
the burden on the manufacturer. Expenditure on distribution through alternative channels must
be noted. The distribution margin is affected with the selection of distribution channel.
Variety of product to be sold: - more the variety of product, more the responsibility of marketing
department of the company.

WAREHOUSING AND TRANSPORTING

Warehousing and transport are essential part of distribution system. Warehousing should be done
in a manner, minimum maintenance of cost should occur. That should be a source of quick
supply to customer because from this place basic supply starts.
Transport is costly, so decision should be taken as to whether warehouses are to be centrally
situated or de centralized. To maintain economical transport, control of cost of vehicle is
essential and shipment must be planned so those vehicles are effectively employed.

OPERATIONAL RESEARCH
Operational research is valuable in improving aspects of distribution process, How?

 By Mathematical representation of whole distribution system

 Nothing and comparing transport cost

 Measuring warehouse operation costs

 Measuring stock level

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Graphs & Charts

Source :- www.statista.com

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 RESEARCH OBJECTIVE

In this project work, attempt has been made to study and analyze important dimensions related to
the distribution Network of Tata Motor Company. The research work has been carried out with
the following objectives in mind:

1) To study the sales and distribution Channel of Tata Motors Limited

2) To identify the factors that affects brand repeat purchasing toward Tata Motor
users.
3) To find out that whether the Tata Motor users are brand loyal or not.
4) To study and evaluate the sales & distribution strategies of the Tata Motors.

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 RESEARCH METHODOLOGY

Scope of this work

These are some of the scope of the study:
1. The present study can be extended to access the present marketing condition of Indian
automobile sector.
2.The study can be used to design a proper product, price, place and promotional strategy for the
market.
3. From the present study we can know the market share of different products and accordingly
formulated strategy to enhance it.
4. The result of marketing success can be interpreted to assess the rate of employee satisfaction
in various departments.
5. This study can be applied to find out an effective distribution channel to enhance the sale of
various products of Toyota motors.

METHODOLOGY

DATA COLLECTION METHODS:

Secondary
Informal Discussions
Interviews (formal & informal)

INFORMAL DISCUSSIONS
Informal discussions were conducted after arranging Informal meetings with the people (Tata
Motor viewer and correspondent). A detailed discussion was done and personal characteristics,
psychology, demographic & psychographic & behavioral dimensions were studied during the
interview. Their likings, disliking’s, tastes, preferences, etc. were taken into account and it was
tried that overall personal sketch was drawn. This all helped in locating exactly the target market
for Tata Products. It also helped in knowing the needs, demands, expectations & supply in the
market.
Although the sample size was only 100 yet it led to a very weighted conclusion.

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INTERVIEWS
Interviews just like informal discussions were preplanned. Infect interviews only led to informal
discussions. Interviews were formal and in some cases, this was the initial step which led to
second & third meeting with the interviewee and they were able to part with the information
freely and informally with the researcher.
Interviews were preplanned (after taking an appointment with them in many cases) very formal
and structured.
When this was through, they were asked to fill in one chart with parameters of a Tata Product
giving their rankings. It helped in finding out their awareness level and needs.
A sample of Questionnaire and Ranking chart are unopened in the Annexures.

SCOPE OF STUDY

 The prime focus of the project is to study the Tata motor Cars, competitive analysis and
collect the shopkeeper feedback to suggest the improvements to the company.

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 All the analysis and study has targeted on car and H/MCV segment
 Distributor is principal extension in the market as principal representative.
 Distributor is given the right to serve specific channel / market by the principal.
 That’s why there should be distribution agreement between them before the works
started.

FACT AND FINDINGS

 57.14 % of the total Car dealers have monthly sales volume in units less than 100 and
20.00 % of the total Car dealers sell more than 300 Cars on average every month

 65.81 % of the total Car dealers have monthly sales volume in units less than 100 and
6.57 % of the total Car dealers sell more than 300 Cars on average every month.
 Overall in the covered area most of the Car dealers are small selling less than 100 Cars a
month. However, data in the sales value terms would have given even better idea.
 48.73 % of the total Car dealers have monthly sales volume in units less than 100 and
25.64 % of the total Car dealers sell more than 300 Cars on average every month.
 In the total area covered Tata Motor penetration level or reach is comparable at all to its
competitors Maruti, Hyundai and Toyota.
 Most of the dealers said that each brand is equally easily available

CONCLUSIONS & IMPLICATIONS

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 Tata Motors will be able to establish itself in the German market through the use of
Volkswagen’s brand name and identity. Tata Motors can make use of the joint venture to satisfy
their goals which is to provide affordable car products. Tata Motors need to use technology
transfers to make sure that only the important information. Technology transfers will ease any
difficulty in acquiring the needed manufacturing strategies to conquer the German Market.
Through the planned joint venture with Volkswagen, the goal of internationalization will be an
easier task for TATA motors. Joint Venture also speeds up the adjustment process of Automobile
industry. For Tata Motors to achieve a good status in the German Market it need to maintain and
improve its production chain so that it will not cause other problems. Tata Motors needs to make
sure that it continues to interrelate with automotive companies that have been in Germany for a
long time so that it can adjust to trends in that country and maintain its competitiveness in that
market. Tata Motors needs to maintain and continually improve its policies on personnel so that
they will be motivated to create products that people will buy. LastlyTata Motors needs to make
sure that the future products will be compatible to changing demands of the environment.
The person is very difficult to understand because it has many factors involved in it. A marketing
strategy & Sales and Distribution Network of Tata Motor is also intended to increasingly
influence and shape consumer satisfied.87% Companies make marketing strategy to influence
exchanges of consumer behavior to achieve organizational objectives. Car-buying preferences
are mainly based on the customer's cultural background but in this case of Tata car satisfied has
come up through large number of Tata users as a friend & acquaintances their feedback has
emerged as prominent buying decision.
Consumers also differ in terms of their pre-purchase information search, they more likely to
consult a reference group member especially friends and family, and also conduct extensive
automobile research prior to their purchase. Although consumers were value-conscious and
appeared to be more concerned with price range and discounts available on the cars. Also their
previous experiences also help them to decide on what kind of cars and brand names they wished
to purchase.
Based on findings, a number of implications were come forward. First, Tata Motor dealers
should be aware that customers from different cultural backgrounds respond and process
differently. The types of messages delivered to each group and the media selected should be
carefully considered. Moreover, it appears that group’s defined value differently.

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Auto, Top gear etc.
 As the result shows that customer get major information form electronic media and then
comes to the newspapers and to the magazines so TATA has to concentrate on the
electronic media like internet that is in web sites like indiacar.com, and the magazines
like Top gear, Auto etc.
 In the ads the more emphasize has to give on the new features in the car as they will
attract the customers. The advertisement should be so made so that it should be match
with the features.
 In the ad all the contact numbers of the all the dealers and the address in their city has to
mention.
 In the ads, it is very essential to mention the financing details, like the banks which were
providing the loan facility and etc.
It should also consider on which elements of the value proposition--price, service, quality, and
image-they wish to focus, based on cultural preferences. Now day’s companies begin doing
business in the "Internet economy," brand image is still important and needs to be cultivated and
protected properly.
Firstly, the Indian consumers did not get liberty to choose their likings; secondly, they were
deceived and frustrated by the available inferior goods and ended up paying premium, the money
could have saved and could have spent well, Finally, when the market opened for outsiders, the
local 'maharajas' got hit and could not revamp their products to woo their long deceived
consumers. The forced brand loyalty, which created through lack of competition, would not work
anymore. Take example, TATA is a household brand in Indian soil, could not induce people to
buy 'INDICA' car which faced initial set back resulted the Automobile industry ended up with a
huge loss of around Rs.500 cr and now, its revamped model is taking place in garages of the
target group. The morale learned from the above example is that consumers would not buy
brands blind fold. They would evaluate the brands through their performance, such as to satisfy
the expectations of users.
The brand loyalty would be gained through the willingness of consumers to buy or influence
their peer group from one brand albeit many substitutes available. Unfortunately, the present
market trends are not very encouraging to exercise and maintain brand loyalty. The fact is that
the invasion of more brands in the market arena facilitates potential users to have wide bouquet

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of choices to choose with. Moreover, present economic condition in the country made people to
become more price sensitive. Also, potential users would gauge the quality of a product/service
through the satisfaction derived from the formed for the price they paid for. These factors have
tremendous influence on breaking of brand loyalty. Yet, brand is a living thing would always
fight to get the top of minds of consumers facilitate their buying decision.

References

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