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A Study of Consumer Preference Towards TATA MOTORS at Moradabad City
A Study of Consumer Preference Towards TATA MOTORS at Moradabad City
A Study of Consumer Preference Towards TATA MOTORS at Moradabad City
1 INTRODUCTION 6-11
6 FINDINGS 36-37
7 CONCLUSION 38-39
8 SUGGESTION 40-41
9 LIMITATION 42-43
10 BIBLIOGRAPHY 44-45
11 QUESTIONNAIRE 46-48
5
INTRODUCTION
6
INTRODUCTIN
This study is used to highlight evaluate the effectiveness of sells prmostion on the buying
behavior of customers. This is vary important as it would bring about rapid groth if
prmostional studies are well planned and implented. One of the puposes of a consumer
prmostion is to elicit a direct inpact on the purchase behavior of the firm’s customers.
The business world today is a world of competition. A business cannot survive if its products
do not sell in the market. Thus, all marketing activities are undertaken to increase sales.
Producers may spend a lot on advertising and personal selling. Still the product may not sell.
So incentives need to be offered to attract customers to buy the product. Thus, sales
promotion is important to increase the sale of any product. Every businessman wants to
increase the sale of products. There are many offers in the markets notices of “winter sale”,
“summer sale”, “trade fairs”, “discount up to 50%” and many other schemes to attract
customers to buy certain products. All these are incentives offered by manufacturers or
dealers to increase the sale of their goods. These incentives may be in the form of free
samples, gifts, discount coupons, demonstrations, shows, contests etc. All these measures
normally motivate the customers to buy more and thus, it increases sales of the product. This
approach of selling goods is known as “Sales Promotion”. But, sales promotion differs from
advertising and personal selling in terms of its approach and technique. Sales promotion
adopts short term, non-recurring methods to boost up sales in different ways. These offers are
not available to the customers throughout the year. During festivals, end of the seasons, year
ending and some other occasions these schemes are generally found in the market. Thus,
sales promotion consists of all activities other than advertising and personal selling that help
Sales promotions are classified as price and non- price based on the nature promotions. Price
promotions are defined as „promotions such as Coupons, Cents off, Refunds, and Rebates that
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temporarily reduce the cost of the goods or service‟. Non- price promotions are defined as
8
India is an emerging country with huge potential. The domestic economy is now growing at
around 9-10% per annum and India‟s importance in global terms is being reinforced by
rapidly rising exports and domestic consumption. At a time when numbers of a slowdown
and overheating in the Indian economy have started gaining momentum, the Indian rupee
sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the center of India‟s new global dynamic. The domestic market
expanding rapidly as incomes rise and consumer credit becomes more widely available.
Manufacturer‟s product lines are being continually expanded, as is the local automotive
manufacturing base. Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global automotive industry
solution high up the automotive value chain.
double.
The automobile industry in India accounts for a business volume of $45 billion and has the
potential to grow much faster both through Indian as well as international manufacturers who
have established huge facilities in the country.
With the world‟s second largest and fastest-growing population, there is no denying India‟s
potential in both economic and population terms and the effect it will have on the auto
industry in the years to come.
The country is already off to a good start, with a well-developed components industry and a
production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and
three-wheelers.
The implications, market drivers and scope of a future massive Indian vehicle market are
covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and
related activity to 2020. Based on Max Pemberto's unique
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relational long-term forecasting model, it forecasts car and CV sales, demographics, materials
usage, auto industry employment, and explains their inter- year of healthy growth in auto
industry.
INDUSTRY GROWTH:
10
Future of the Automobile in the Economy:
US based consultancy, keystone predicts that India will become world‟s third largest
automobile market by 2030. Overall size expected to exceed 20 million with compounded
annual growth rate of over 12%.
In 1983:
❖ Number of brands 2
❖ Number of models 2
In 2014:
❖ Number of brands 30
Number of models 70
11
COMPANY
PROFILE
12
COMPANY PROFILE
Over a period of more than two decades the Indian Automobile industry has been driving its
own growth through phases. The entry of Suzuki Corporation in Indian passenger car
manufacturing is often pointed as the first sign of India turning to a market economy. Since
then the automobile sector witnessed rapid growth year after year. By late-90's the industry
reached self reliance in engine and component manufacturing from the status of large scale
importer.
With comparatively higher rate of economic growth rate index against that of great global
powers, India has become a hub of domestic and exports business. The automobile sector has
been contributing its share to the shining economic performance of India in the recent years.
With the Indian middle class earning higher per capita income, more people are ready to
own private vehicles including cars and two-wheelers. Product movements and manned
services have boosted in the sales of medium and sized commercial vehicles for passenger
and goods transport. Side by side with fresh vehicle sales growth, the automotive
components sector has witnessed big growth. The domestic auto components consumption
has crossed rupees 9000 crores and an export of one half size of this figure
The Indian automobile industry is going through a technological change where each firm is
engaged in changing its processes and technologies to sustain the competitive advantage and
provide customers with the optimized products and services. Starting from the two wheelers,
trucks, and tractors to the multi utility vehicles, commercial vehicles and the luxury vehicles,
the Indian automobile industry has achieved tremendous amount of success in the recent
years.
13
As per Society of Indian Automobile Manufacturers (SIAM) the market share of each
segment of the industry is as follows:.
The automobile industry had a growth of 15.4 % during April-January 2007, with the average
annual growth of 10-15% over the last decade or so. With the incremental investment of $35-
40 billion, the growth is expected to double in the next 10 years.
Consistent growth and dedication have made the Indian automobile industry the second-
largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest
commercial vehicle manufacturer in the world. The Indian automobile market is among the
largest in Asia.
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 industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda
India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered
to 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.
14
Moreover, the automobile companies are coming up with financial schemes such as easy EMI
repayment systems to boost sales.
There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the
technological advancements. Besides, there are many new projects coming up in the
automobile industry leading to the growth of the sector.
The Government of India has liberalized the foreign exchange and equity regulations and has
also reduced the tariff on imports, contributing significantly to the growth of the sector.
Having firmly established its presence in the domestic markets, the Indian automobile sector
is now penetrating the international arena. Vehicle exports from India are at their highest
levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and
Mahindra and Mahindra are leading the exports to Europe, Middle East and African and
Asian markets.
The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the
motive of making India the most popular manufacturing hub for automobiles and its
components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting
its growth in the domestic as well as international arena.
15
TATA GROUP
Tata is a rapidly growing business group based in India with significant international
operations. Revenues in 2007-08 are estimated at $62.5 billion (around Rs251,543 crore), of
which 61 per cent is from business outside India. The Group employs around 350,000 people
worldwide. The Tata name has been respected in India for 140 years for its adherence to
strong values and business ethics.
The business operations of the Tata Group currently encompass seven business sectors:
communications and information technology, engineering, materials, services, energy,
consumer products and chemicals.
The Group‟s 27 publicly listed enterprises have a combined market capitalization of some
$60 billion, among the highest among Indian business houses, and a shareholder base of 3.2
million. The major companies in the Group include Tata Steel, Tata Motors, Tata
Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata
Communications
The Group‟s major companies are beginning to be counted globally. Tata Steel became the
sixth largest steel maker in the world after it acquired Corus. 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 Tea is the second largest branded
tea company in the world, through its UK-based subsidiary Tetley. Tata Chemicals is the
world‟s second largest manufacturer of soda ash. Tata Communications is one of the world‟s
largest wholesale voice carriers.
16
In tandem with the increasing international footprint of its companies, the Group is also
gaining international recognition. Brand Finance, a UK-based consultancy firm, recently
valued the Tata brand at $11.4 billion and ranked it 57th amongst the Top 100 brands in the
world.
Businessweek ranked the Group sixth amongst the World‟s Most Innovative Companies.
And the Reputation Institute, USA, recently rated it as the World‟s Sixth Most Reputed Firm.
Founded by Jamsetji Tata in 1868, the Tata Group‟s early years were inspired by the spirit
of nationalism. The Group pioneered several industries of national importance in India: steel,
power, hospitality and airlines.
In more recent times, the Tata Group‟s pioneering spirit has been showcased by companies
like Tata Consultancy Services, India‟s first software company, which pioneered the
international delivery model, 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, for commercial launch by end of 2008.
The Tata Group has always believed in returning wealth to the society it serves.
Twothirds of the equity of Tata Sons, the Tata Group.s promoter company, is held by
philanthropic trusts which have created national institutions in science and technology,
medicalresearch, social studies and the performing arts.
The trusts also provide aid and assistance to NGOs in the areas of education, healthcare and
livelihoods.
Tata companies also extend social welfare activities to communities around their industrial
units. The combined develop mentrelated expenditure of the Trusts and the companies
amounts to around 4 per cent of the Group‟s net profits.
Going forward, the Group is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008 is ranked the world‟s
fourth fastest.
TheGroup aims to build a series of world class, world scale businesses in select sectors.
17
Anchored in India and wedded to its traditional values and strong ethics, the Group is
building a multinational business which will achieve growth through excellence and
innovation, while balancing the interests of its shareholders, its employees and wider society.
18
CORE VALUES OF TATA
At the Tata Group our purpose is to improve the quality of life of the communities we serve.
We do this through leadership in sectors of national economic significance, to which the
Group brings a unique set of capabilities.
This requires us to grow aggressively in focused areas of business. Our heritage of returning
to society what we earn evokes trust among consumers, employees, shareholders andthe
community.
This heritage is being continuously enriched by the formalization of the high standards of
behavior expected from employees and companies. The Tata name is a unique asset
representing leadership with trust. Leveraging this asset to enhance Group synergy and
becoming globally competitive is the route to sustained growth and long-term success.
The Tata Group has always sought to be a value-driven organization. These values continue
to
direct the Group‟s growth and businesses. 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-
today work and in the quality of the goods and services we provide and mutual cooperation.
19
OBJECTIVES OF THE
REPORT
20
OBJECTIVES OF THE REPORT
The object of report is not only to focus on competitors but also to get the competitive
position in the national as well as international market through customer satisfaction. These
are as follows.
To study the customer perception regarding product and services of TATA Motors
and also to inculcate necessary suggestions.
21
RESEARCH
METHODOLOGY
22
RESEARCH METHODOLOGY
various steps that are generally adopted by a researcher in studying his research problem
23
DATA ANALYSIS
24
DATA ANALYSIS
Table No 1
(b) No 0 0%
100
90
80
70
60
50 YES
40 NO
30
20
10
0
YES NO
INTERPRETATION:
25
Q2 HOW SATISFIED ARE YOU WITH THE SERVICES OFFERED
BY TATA ?
A. Satisfied 40 40%
B. Dissatisfied 15 15%
No of respondents
45
40
35
30
25
No of respondents
20
15
10
5
0
Satisfied Dissatisfied High satisfied Moderate
satisfied
A. B. C. D.
INTERPRETATION:
❖ 40% of the respondents are satisfied with their cars and the services of TATA
❖ However 15% of the Respondents are dissatisfied at the same time
❖ 25% of the respondents are high satisfied.
❖ 20% of the respondents are moderate satisfied.
26
Q.3 IF SATISFIED THEN ARE YOU HAPPY WITH THEIR CHARGES AND TIMELY DELIVERY
THEY WERE OFFERING ?
A. Satisfied 80 80%
B. Unsatisfied 20 20%
90
80
70
60
50 No of respondents
40 Percentage
30
20
10
0
Satisfied Unsatisfied
A. B.
INTERPRETATION :
80% of the respondents say they are satisfied by timely delivery and charges.
27
Q4 DO YOU THINK TATA HAS THE MOST FUEL EFFICIENCY?
A. Yes 78 78%
B. No 22 22%
No of resondents
90
80
70
60
50
No of resondents
40
30
20
10
0
Yes No
A. B.
INTERPRETATION
❖ 78% of the respondents felt that Tata has the most fuel efficiency.
28
Q5 HOW DO YOU FIND THE FEATURES OF TATA AS COMPARED TO
OTHER CARS ?
A. Good 70 70%
C. Not So Good 8 8%
D. Staisfactory 12 12%
No of resondents
80
70
60
50
40 No of resondents
30
20
10
0
Good Very Good Not So Good Staisfactory
A. B. C. D.
INTERPRETATION:
❖ 70% of the respondents felt that the features of the Tata are good.
❖ While 8% of respondents thought it was not so good, 10% thought it was very good
and 12% felt satisfactory about the features.
29
Q6 WHICH OF THESE QUALITIES DO YOU THINK BEST
DESCRIBES TATA?
A. Handling 15 15%
C. Design 38 38%
D. Comfort 29 29%
40
35
30
25
20 Series1
15
10
5
0
Handling Fuel Efficiency Design Comfort
A. B. C. D.
INTERPRETATION:
30
Q7 HOW DO YOU FIND THE INTERIORS OF TATA?
A. Good 74 74%
C. Stasisfactory 7 7%
D. Not So Good 3 3%
No of respondents
80
70
60
50
40 No of respondents
30
20
10
0
Good Very Good Stasisfactory Not So Good
A. B. C. D.
INTERPRETATION:
❖ The interiors of Tata are very good according to 74% of the respondents.
❖ 16% said it was very good, 7% said it was satisfactory and 3% felt it was not so good.
31
Q8 ACCORDING TO YOU WHAT SHOULD BE DONE TO IMPROVE
TATA?
No of respondents
80
70
60
50
40 No of respondents
30
20
10
0
Make It More Cheaper Spare More Service
Affordable Parts Stations
A. B. C.
INTERPRETATION:
❖ If Tata is made more affordable then it would win more customers, a theory
which was backed by 72% of the respondents.
❖ 15% and 13% respectively want cheaper spare parts and more service
stations.
32
Q9 ACCORDING TO YOU WHAT SHOULD BE DONE TO MAKE TATA THE
BEST CAR?
No of respondents
70
60
50
40
No of respondents
30
20
10
0
Make It More Make It More Give It A Retro Give It A
Futuristic Sporty Look Concept Car
Look
A. B. C. D.
INTERPRETATION:
❖ To make it the best car in its class it should be made more futuristic which
was felt by 60% of the respondents.
❖ 15% of the respondents thought it should be made more sporty.
❖ 10% wanted it to have a retro look and 15% wanted to give it a concept car
look.
33
Q10 ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY
TATA ?
A. Yes 30 30%
B. No 15 15%
No of respondents
60
50
40
30 No of respondents
20
10
0
Yes No Happy But It Can Be
Better
A. B. C.
INTERPRETATION:
❖ Overall 55% of the respondents were happy with the after sales service
provided by Tata but they can say that it can be better..
❖ 15% were unhappy with Tata due to poor after sales services provided by
them.and 35% say it good..
34
Q.11 YOUR 2ND CAR WOULD BE OF WHICH COMPANY / BRAND ?
A TATA 15 15%
B TOYOTA 20 20%
C HONDA 20 20%
D HYUNDAI 45 45%
No of respondents
50
45
40
35
30
25 No of respondents
20
15
10
5
0
TATA TOYOTA HONDA HYUNDAI
A B C D
INTERPRETATION:
35
FINDINGS
36
FINDINGS
❖ 40% of the Respondents were satisfied with their cars and the services of Tata,
❖ 78% of the respondents felt that Tata has the most fuel efficiency
❖ 70% of the respondents felt that the features of the Tata are good. While 8% of
respondents thought it was not so good, 10% thought it was very good and 12%
❖ Tata is best known for its design & comfort. Then comes Handling and Fuel
Efficiency.
❖ If Tata is made more affordable then it would win more customers, a theory which
was backed by 72% of the respondents.15% and 13% respectively want cheaper
❖ To make it the best car in its class it should be made more futuristic which was
more sporty.10% wanted it to have a retro look and 15% wanted to give it a
37
CONCLUSION
38
CONCLUSION
According to my survey majority of the customers are satisfied with TATA MOTORS
automobile.
TATA MOTORS have a very good market share in Moradabad city and are capable to
attract today’s generation by its price , mileage and design. The company also offering
80% of the respondents are satisfied with TATA MOTORS and remaining 20% respondents
are unsatisfied .
74% of the respondents say that TATA provide a good interior, 16% says Very Good ,3 %
says satisfactory and 7% say not so good.
39
SUGGESTIONS
40
SUGGESTIONS
Management should try to reduce labor charge and service charges as much as
possible.
Management should maintain delivery timings and on road break down service‟s
41
LIMITATIONS
42
LIMITATION
1. The main limitation of this report is sample size and sample area. These are very
small. Hence conclusion drwn on the basic of these sample can vary due to
change in area and change in size
2. Conclusion drawn on the basis of sample may be false in a case when the sample
are not original and influenced by other.
3. The total process from survey to report writing is totally manual and no scale or
machanical instrument is used in it. Hence coclusions drawn are doubtful.
43
BIBLIOGRAPHY
44
BIBLIOGRAPHY
Books:
1. Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth Edition)
2. Marketing Management, The McGraw.Hill Company Rajan Saxena (Third Edition)
3. Berman, Berry and Joel r Evans (Oct- 1997) Retail Management: A strategic approach
8th edition Englewood cliffs NJ printcehall
4. Country analysis 1997 “ A framework to identify and evaluate the national business
environment”
Hardward business review.
MAGAZINES:
A) OUTLOOK BUSINESS (FEB, 2013)
B) BUSINESS STANDARD (April-July 2013)
C) 4P‟S OF BUSINESS AND MARKETING (June 2013)
D) BUSINESS TODAY - Pick and Choose
E) BUSINESS TODAY - Tata Motors to bring Jaguar, Land Rover to India
INTERNET:
1. Tata Motors' Official Website
3. http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car
4. http://www.capitaline.com
5.http://www.tatamotors.com/our_world/press_releases.php?ID=458&action=Pull
6.http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull
7. http://money.rediff.com/companies/tata-motors-ltd/10510008/cash-flow
8. htttp://www.moneycontrol/com/tata-group/tatamotors
9. http://www.yahoofinance.com/tatamotors
10. http://www.carwale.com/research/cars/tata
45
QUESTIONNIARE
46
APPENDIX
A) NAME
B) ADDRESS
C) CONTACT NUMBER
D) INCOME GROUP
3- IF SATISFIED, THEN ARE YOU HAPPY WITH THEIR CHARGES AND TIMELY
DELIVERY THEY WERE OFFERING?
a- HAPPY ( ) b- UNHAPPY ( )
c- DESIGN ( ) d- COMFORT ( )
47
7- HOW DO YOU FIND THE INTERIORS OF TATA?
a- GOOD ( ) b- VERY GOOD ( )
10- ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED BY TATA ?
a- YES ( )
b- NO ( )
48