BUSINESS COMMUNICATION A CONSUMER BEHAVIOUR REPORT ON AUTOMOBILE INDUSTRY (TATA MOTORS)

SECTION C

GROUP C- 13

MBA 1

S. NO. 1 2 3 4

ROLL NO. 11202182 11202183 11202184 11202185

NAME VIKRAM KUMAR SWATI SAMARPITA SAMBIT MOHAPATRA MANASWANI ACHARYA

Faculty Guide: Prof. Surbhi Kapur School of Management, KIIT University

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DECLARATION

I hereby declare that the project report titled A Consumer Behaviour Report on Automobile Industry(Tata Motors) is my own work and has been carried out under the guidance of Prof. Surya Narayana Mishra, Marketing Department in KIIT School of Management, Bhubaneswar and Dr. Surbhi Kapur, KIIT School of Management, Bhubaneswar. All care has been taken to keep this report flawless and I sincerely regret any unintended discrepancies in this report. Thank You, Vikram Kumar (11202182) Swati Samarpita (11202183) Sambit Mahapatra(11202184) Manaswini Acharya(11202185)

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ACKNOWLEDGEMENT

The research on A Project Report on Automobile Industry (Tata Motors) has been given to me as part of the curriculum during Master of business Administration. We have tried our best to present this information as clearly as possible using basic terms that we hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. We have completed this project under the guidance and supervision of PROF. SURBHI KAPUR and my project guide Prof. Surya Narayana Mishra, Marketing Department in KIIT School of Management. We will be failed in my duty if we do not acknowledge the esteemed scholarly guidance, assistance and knowledge we have received from them towards fruitful and timely completion of this work. Mere acknowledgement may not redeem the debt we owe to my parents for their direct/indirect support during the entire course of this project.

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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ................................................................................................................................ 5 2. INTRODUCTION .............................................................................................................................................. 5 3. OBJECTIVES ....................................................................................................................................................... 7 UNCOVERING THE CONCEPT BEHIND TATA MOTORS SUCCESS THROUGH INNOVATION ....................................................................................................................................... 7 ANALYZING TATA MOTORS SUCCESS IN ECONOMIC AUTOMOBILE SEGMENT AND ITS SUBSEQUENT MARKETING STRATERGIES ........................................................................ 7 4. THEORETICAL PERSPECTIVE ....................................................Error! Bookmark not defined. COMPANY PROFILE OF TATA MOTORS.................................. Error! Bookmark not defined. 5. METHODOLOGY .............................................................................................................................................. 9 RESEARCH APPROACH ................................................................ Error! Bookmark not defined. PRIMARY DATA SOURCES ........................................................................................................................ 9 SECONDARY SOURCES ............................................................................................................................... 9 6. RESEARCH DESIGN ..................................................................................................................................... 10 SURVEY ............................................................................................................................................... 10 SECONDARY DATA STUDIES ........................................................................................................ 10 OBSERVATION TECHNIQUES ......................................................................................................... 10 7. ANALYSIS AND INTERPRETATION ..................................................................................................... 10 8. CONCLUSION .................................................................................................................................................. 12 9. LIMITATIONS ................................................................................................................................................ 13 10. RECOMMENDATIONS & SUGGESTIONS ......................................................................................... 13 11. BIBLIOGRAPHY.......................................................................................................................................... 14 12. ANNEXURE ................................................................................................................................................... 15 QUESTIONNAIRE ........................................................................................................................... 15

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EXECUTIVE SUMMARY

The main objective of the project is to get the full knowledge of Tata Motors and what are they doing to get the customer loyalty, to maintain their market. This is also to find the preferences of customer and there market knowledge and product information, information about the presence of the rivals of Tata and all the other options they have in the market. A questionnaire was prepared and there were 40 respondents. The market research work was divided into two stages i.e. to collect & analyze the various the factors that would help in knowing the consumer buying behavior.

INTRODUCTION

The Automobile Industry came of age with Henry Ford in 1914 for the bulk production of cars. This lead to the development of the industry and it first began in the assembly lines of his car factory. The several methods adopted by Ford, made the new invention (that is, the car) popular amongst the rich as well as the masses.

According the History of Automobile Industry, US dominated the automobile markets around the globe with no notable competitors. However, after the end of the Second World War in 1945, the Automobile Industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign automobile companies, especially those of Japan and Germany. The current trends of the Global Automobile Industry reveal that in the developed countries the Automobile Industries are stagnating as a result of the drooping car markets, whereas the Automobile Industry in the developing nations such as India and Brazil have been consistently registering higher growth rates every passing year for their flourishing domestic automobile markets.

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Introduction -Automobile Market in India

The automobile industry in India, the tenth largest in the world with an annual production of approximately 2 million units, is expected to become one of the major global automotive industries in the coming years. India auto market is a promising industrial sector that is growing immensely every passing year. Passenger cars are referred to, through use of word has emerged as one of the fastest growing in the world. The number of cars sold domestically is projected to double by 2012, and domestic production is skyrocketing as foreign makers are setting up their own production plants in India. The governments 10year plan aims to create a $145 billion auto industry by 2016. Auto industry in India mainly comprises of small car section, which enjoys nearly a 2/3rd market share of entire market for autos in India. In this respect, Indian markets are largest in world for small cars, behind Japan.

Indian passenger car market which ranks amongst largest in world is poised to become even larger and enter top five passenger car markets in world in next decade.

Segmentation of market share of automobile industry in India

Passenger Vehicle: 15.96% Commercial Vehicle: 3.95% Three wheelers: 3.60% Two wheelers: 76.49%

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Tata Motors is the largest automobile manufacturing companies in India. Established way back in 1945 Tata Motors is a multinational automobile company with its headquarters in Mumbai. Previously known as Telco TATA Engineering and Locomotive Company) Tata Motors belongs to Tata Group. This company manufactures compact medium sized utility vehicles. Over the last few decades it has stood as the undisputed leader in the commercial vehicles segment. It is also the third largest producer of passenger cars in India. This automobile company in India is listed on both the Bombay Stock Exchange and the New York Stock Exchange. The revenues earned by Tata Motors in 2010 accounted to $20.572 billion. Some of the well known cars manufactured by Tata Motors are: Tata Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.

OBJECTIVES

UNCOVERING THE CONCEPT BEHIND TATA MOTORS SUCCESS THROUGH INNOVATION Tata motors are well established Indian automobile company with a history of more 60 years. With their wide range of product line, they keep the top position in the car industry in India. Also they are pioneer in the truck manufacturing and bus manufacturing in the world. They had revenue of $20 bn in the last financial year 2010-11 with twenty five thousand employees working all around the world. With their strong leadership and innovation in the products they made good business all over the worlds. Analyzing TATA motors innovation strategy it was found that they followed three different strategies for innovating their products. It can be used very efficiently for any industry. The tree strategies are: 1. Open innovation (TATA NANO) 2. Innovation through acquisition (Jaguar & Daewoo) 3. Innovation for mass markets in emerging economies

TATA`S SUCCESS IN THE ECONOMIC AUTOMOBILE SEGMENT AND SUBSEQUENT MARKETING STRATEGIES

Tata concentrate more into economical buyers from the Indian society. Because of this reason their innovation strategies always point into cost reduction and economical cars. With a huge population above 1Bn, there is considerable amount of potential customers in this sector. The main factors affecting these customers are fuel efficiency and low-price of the car. Aiming this sector, Tatas most success and innovative strategy was Tata Nano car.

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The Nano concept of TATA MOTORS made home in the minds of the consumers. More or less everybody felt that this CAR was mainly for the common man and termed it as peoples carwith cost of 1Lakh Indian rupee (1300 GBP).This priced compared as double the price of a bike in Indian market. So this attracted the middle class society who used bikes to think about buying a car with his budget money. So that Nano named a people car with this reason. With its four wheels and the protecting body, this disruptive innovation opened up a totally new world of safety and comfort for the Indians that had driven motor bikes and scooters so far.

COMPANY PROFILE OF TATA MOTORS

The Tata Motors group is a passenger and commercial vehicle manufacturer based in India. The motor group was established in 1945 as part of the larger Tata Group. They have long been known for their commercial vehicles and in the past ten years entered into the passenger car market. Currently, Tata Motors has a line of five passenger vehicles and a large line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both product lines of the Tata Motors group have seen success, but much of this has been built upon the more deeply established commercial vehicle product line. Tata Motors commercial line has been established for several years in many market segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia. Tata Motors has expanded their business and market share around the world through a series of acquisitions. In 2004, they acquired Daewoo commercial vehicle Company in South Korea which was South Koreas second largest truck manufacturer. This acquisition gave Tata Motors a significant presence in the Korean market. They have also entered into joint ventures with companies such as Thonburi Automotive in 2006, which allowed them to manufacture and market pickup trucks in Thailand. We think it makes sense for Tata to expand through acquisition (as it did in tea and steel) than spend a decade to build the business (Lehman Brothers). The commercial vehicle area of the business has certainly been how Tata Motors have built their reputation, with commercial vehicles accounting for 80-85% of company profits. They are beginning to employ a similar technique as they now expand into the passenger car business. Tata Motors have been making global headlines in the auto industry lately; the largest news being their acquisition of Jaguar and Land Rover from Ford.Tata paid 2.3 billion dollars to Ford for the two brands that cost Ford 5.3 billion (Carty, USA Today). This is a major step for the company because it catapults them into the luxury car business which they are not known for at this time. Tata, like many new businesses it acquires, is allowing this new segment of the business to be run by previous management since they have more experience in the luxury automotive business. Tata will give us some space. They want us to run our business, be a premium British car company (Mike ODriscoll, managing
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director of Jaguar). This is yet another large acquisition for the Tata Motors group and could create great success for the company in the near future

Company Type - Public 2010 Sales (mil.)- 13,649.7 2010 Net Income (mil.)- 560.4 1-Year Employee Growth - (24.4%)

Fiscal Year- End March 1-Year Sales Growth- 48.5% 2010 Employees -50,000

RESEARCH METHODOLOGY

The research is primarily both exploratory and descriptive in nature. The sources of information are both primary and secondary. A well structured questionnaire was prepared for the primary research and personal interviews were conducted to collect the responses of the target population. The secondary data has been taken by referring to various magazines, newspapers, internal sources and internet to get the figures required for the research purposes. PRIMARY DATA SOURCES The primary sources of data collection were through questioning to the working professionals and household members. We also tried to cover some of the students. Questionnaires helped us to know about their consumption pattern of different detergents. SECONDARY DATA SOURCES Apart from the primary data sources, we referred some of the secondary sources and a comprehensive report was generated. The sources include internet, friends working in other companies, faculty members, books. It is the data which has already been collected by someone or an organization for some other purpose or research study. Some of the secondary data sources include: Books & Journals Internet sources

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RESEARCH DESIGN
SURVEY This is common method of generating primary data. Here we choose to contact the respondents using a questionnaire that comprises with the question that needed to be answered by the respondent which would help us to analyze. SECONDARY DATA STUDIES As information here cannot be interchangeable, but helps in collecting information about the presence of automobile industry OBSERVATION TECHNIQUES Here the objective is to know how the automobile industry works in peoples mind, particularly Tata motors. As using the survey & our secondary data it records the perception of people towards TATA MOTORS.

ANALYSIS AND INTERPRETATION WHO ACTUALLY BUYS THE PRODUCT IN THE FAMILY? - WORKING WOMEN - YOUTH (MEN AND WOMEN) - FEW MEN

POPULATION %
OTHERS WORKIN G WOMEN WORKING MEN 0 20 40 60 80

POPULATION %

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WHO MAKES THE DECISION FOR THE PURCHASE? SELF DECISION IS MADE HEAD OF THE FAMILY

WHAT INFLUENCES THE DECISION FOR THE PURCHASE? THE ECONOMIC CLASS CONCEPT OF TATA ADVERTISEMENTS &FEEDBACK FORM EXISTING USERS FEATURES,LOOK,EFFICEINCY & ETHICAL VALUE OF THE COMPANY

PERCENTAGE
FEATURES,LOOK & ETHICAL VALUE

ADVERTISEMENT & FEEDBACK

PERCENTAGE

ECONOMIC CONCEPT 0 10 20 30 40 50

WHERE IS INFORMATION SEARCHED FOR? INFORMATION GATHERED IS BASED ON FEEDBACK AND ADVERTISEMENTS

WHO ARE THE COMPITITORS? -HYUNDAI MOTORS -MARUTI -OTHERS

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WHAT IS THE EVALUATION PROCEDURE? TO EVALUATE THE OPTIONS AVAILABLE IN THE ECONOMIC AUTOMOBILE SEGMENT, ALSO TO CONTEST THAT TATA CARS ARE MEANT FOR THE COMMON MAN ALONG WITH TOP CREAM OF THE SOCIETY.

WHAT IS THE LEVEL OF INVOLVEMENT OF THE CONSUMER WITH THE PRODUCT AND THE PURCHASE PROCESS? EXCELLENT

CONCLUSION

During the project we tried our best to understand each & every aspect which would enhance or affect the business of Automobile industry. We come up with the finding that TATA MOTORS as a whole has been able to retain the a substantial market share and its growth has also been substantial as compared to a decade back. TATA MOTORS is embedded in the consumer minds as the peoples Brand, and it has successfully expanded.

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LIMITATIONS

1. Limited Time: The time available to conduct the study was only 15 days. It being a wide topic vast research is required. 2. Limited Resources: Limited resources are available to collect the information. 3. Research was limited within Bhubaneswar & its adjacent places. 4. People were not providing real information/data some times as per the questionnaire (reluctant to give information), which can possibly can leads outputs which may not be real/ appropriate.

RECOMMENDATIONS & SUGGESTIONS

After getting observations we would like to recommend some important points, upon which TATA MOTORS should focus and try to grow its business by tapping the market through making new customers. Some of the recommendations are as follow: Mixing open innovation model with sustainability. the next generation cars are aiming for zero emission and alternative fuels. this can be active using this concept mixing Mixing TATA MOTORA(JLR) workforce with Tata Nano will increase good quality product with in the economic range of cars Expansion of TATA MOTORS(JLR) to Asian countries to increase the company brand name and can compete with others we would like to suggest is TATA MOTORS should focus more on its promotional forces, so that it would be able to convey the features to the common people. Once the features will be exposed then only it can make new customers.

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BIBLIOGRAPHY

BOOKS REFERRED

1. Philip Kotler, Kevin lane keller, Abraham Koshy & Mithileshwar Jha, Marketing Management 13TH Edition 2. William G. Zikmund , Business Research Method 7th Edition 3. Richard I. Levin and David S. Rubin, Statistics for Management 7th edition

REPORTS 1. Report of TATA MOTORS 2010. 2. Market Research Project on Automobile Industry.

WEBSITES 1. www.indiacatalog.com 2. www.tatamotors.com 3. www.google.com 4. www.wikipedia.org 5. http://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cms

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ANNEXURE

QUESTIONNAIRE

WHICH MODEL OF CAR DO YOU HAVE? WHERE DID YOU HEAR ABOUT THIS CAR? HAVE YOU OWNED ANY MODELS OF TATA CARS PREVIOUSLY? WHAT WERE OTHER OPTIONS AVAILABLE? WHY HAVE YOU CHOSEN YOUR current model? ANY EXPECTATTIONS FROM YOUR CURRENT BRAND? ANY COMPLAINTS WITH YOUR CURRENT BRAND? WOULD YOU LIKE TO SWITCH OVER TO ANOTHER BRAND? WOULD YOU RECOMMEND YOUR BRAND TO ANYONE? WHAT ARE THE FEATURES YOU WANT IN A CAR? DOES THE ADVERTISEMENTS & FEEDBACK FROM USERS INFLUENCE YOU TO BUY a CAR? WHY? RATE YOUR CAR ON VALUE FOR MONEY, FEATURES, LOOK, AFTER SALES SERVICE & EFFICIENCY? RATE YOUR CURRENT BRAND OUT OF 10

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