Students Project: Marketing Project 1 (Tata Motors)

SUMMER INTERNSHIP REPORT ON

“ Scope of small commercial vehicle (SCV) in rural & URBAN areas in respect to augmentation competition”

PRESENTED BY:

VIKASH KUMAR SINGH

PGDM

Project guide: Corporate guide:

Mr. Rajiv Gupta Mr. Ashutosh sinha

IIMT COLLEGE OF MANAGEMENT

TSM-SCVP, Jamshedpur

Greater Noida Phon- 0977143673

ashutosh.sinha@tatamotors.com

PREFACE

As the present day business world is a highly complex one where Human Ingenuity and Acumen is sharpened by highly specialized knowledge in various branches pertaining the running and conducting. The research project in our basket was- comparative analysis of TATA Magic and its competitors.

The research project done was to maintain and cope up with the growing competition from the various Automobile sectors, therefore TATA MOTORS needs to find potential clients and satisfy their needs.

The broad objective of the project is to equip the trainees with all the quality which is essential to face any circumstances which can arise while working during Professional Careers.

This project will accomplish us to understand how the people interact with the multipurpose use, low maintenance & low budget vehicles in this Jamshedpur area. The project helps in understanding the Scope of Rural Marketing of SCV-P and its demand in urban markets. In this project, we have initiated to penetrate into rural Segment through NGOs.

All these steps help me to understand how to cope up with different types of people who are working in cross functional areas and steps to coordinate with them. This project also evaluates diversified need and satisfaction level of Workers who are working for NGOs.

This research work gave me the opportunity to apply conceptual skills in practice and to learn the art of conducting study and presenting its findings in a systematic and scientific way.

ACKNOWLEDGMENT

The successful completion of this project is not just owed to one but it bears an imprint of the efforts of many people, actively involved with the project.

This project is prepared on “ Scope of small commercial vehicle (SCV) in rural & URBAN areas in respect to augmentation competition” for the brand of TATA MOTERS . My sincere thanks to TATA MOTERS for giving me this opportunity to work with them . I would also like to thank Mr. Ashutosh sinha (TSM-SCVP,JAMSHEDPUR TATA MOTORS) under whose guidance I completed my project. I also extend my gratitude to all my supportive members for their cooperation and guidance.

I hope that the project would be useful and liked by the viewers.

My overriding debt continues to my family and friends who continuously provided me time, support, inspiration and friendly environment needed to prepare this report.

Vikash kumar singh

Index

No.	Particulars	Page No.
1	EXECUTIVE SUMMARY	5-6
2	THE INDIAN AUTOMOBILE INDUSTRY	7-12
3	COMPANY OVERVIEW	13-17
4	PRODUCT LINE OF TATA MOTORS LIMITED
5	PRODUCT PROFILE (TATA MAGIC)
6	SWOT ANALYSIS OF TATA MAGIC
7	COMPETITORS OVERVIEW
8	OBJECTIVE OF STUDY
9	RESEARCH METHODOLOGY
10	METHODS OF DATA COLLECTION
11	AWARNESS PROGRAMME
12	SURVEY ANALYSIS
13	COMPARATIVE ANALYSIS
14	DEALER ANALYSIS
15	OPERATING ECONOMIES COMPARISION
16	FINDINGS
17	ADVANTAGES
18	STRATEGIC RECCOMENDATIONS
19	CONCLUSIONS
20	LIMITATIONS
21	ANNEXURES

EXECUTIVE SUMMARY

The project is based on the ways to penetrate into the rural market for small commercial vehicle passenger and it also shows the demand of the SCV-P vehicle in the urban market.

At the same time we also gathered information regarding the competitors of TATA Motors in this segment. We came to the conclusion that new launched Mahindra Maxximo, Piaggio Ape, Mahindra Alfa , Bajaj Mega and Force Minidor are the main competitors in the state of Jharkhand .We collected information of the competitors from net and studied them . Further we collected information in the form of questionnaires pertaining to TATA MAGIC and their main competitors. The information is collected from different auto stands in Jamshedpur, Sharaikela, Kharsava, Chaibasa, Chakardharpur. The work done for completion of the research involves all steps of effective marketing research.

A research has been done to know the scope of SCV-P in the rural market and how to tap those untapped market. This project deals with the various steps that have been followed to enter into the rural market. Strategies have been formed to work with the NGOs to penetrate into the untapped market.

Studies have shown that 72% of India is rural and small and the rest 28% is urban. Other companies like ITC, HUL and M&M Tractors has a rural strategy for their Product Promotion. Looking after their success stories, we have planned to target the rural areas in order to increase our rural volumes.

NGOs/NRHM (National Rural Health Mission) workers work for the development of rural population and thus they have a better reach into the rural areas. Thus working with them and using their networking skills, can be studied and initiate rural penetration plan with their association .We have collected a database of various NGOs working in Jamshedpur and their adjoining Districts. We have worked with NRHM which is an active health mission conducted by the government in every state. Every district is divided into a number of blocks. NRHM appoints a block officer and various ANMs and Sahiyyas working under them. We have initiated to inter into the rural market through the workers of various NGOs

This project would also show the demand and the feedback of SCV-P in the urban areas.

To know the consumer’s response on the utility of these vehicles and viability of Magic in different routes a survey was conducted on few auto stands in Jamshedpur , we also travelled in TATA Magic and its new competitor Mahindra Maxximo to determine there performance and short comings of these vehicles regarding fuel consumption , pickup, speed & passengers comforts. All the responses were collected from drivers and owners. These responses were noted down and analyzed with the help of charts and thus conclusions were drawn.

THE INDIAN AUTOMOBILE INDUSTRY

Indian automobile industry is the seventh largest in the world with an annual production of over 2.6 million units in 2009. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand in the year 2009. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. In February 2010, monthly sales of passenger cars in India exceeded 100,000 units. Embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and multinational car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

Today, the Indian automobile industry is ranked first in the world in the production of three wheelers, second in the production of two wheelers, fourth in the production of commercial vehicles and ninth in the production of passenger vehicles. With a production of more than 11 million vehicles in FY08-09, the Indian automotive industry has shown an outstanding resilience after the last down cycle about a decade back. In the last few years, the Indian automotive industry has grown at a healthy rate by reducing costs and improving efficiency. With its new found confidence, it has gone beyond the shores of India and is creating a noteworthy footprint in different geographies in the world.

The Indian automotive market with a healthy growth rate of 14% in the last7 years (as on FY08-09) was a source of attraction to many foreign automobile companies whose entry in the Indian market not only increased competition, but also raised customer expectations about product quality and reliability. This forced the Indian companies to introduce new and interesting products and innovation has now become a notable feature of the Indian automobile industry.

The automobile industry consisting of cars, trucks, buses, two-wheelers and three-wheelers, is vital to the growth of the Indian economy. In the last decade their share in the Indian economy is around 5% of GDP. Economic progress is indicated by the amount of goods and services produced which give the impetus for transportation and boost the sale of vehicles. Increase in automobile production has a catalyst effect by indirectly increasing the demand for a number of raw materials like steel, rubber, plastics. Since transportation is the nerve centre of every other industry, the well being of the automobile industry is a good indicator of the health of the economy. Economic studies have shown that every truck manufactured creates anywhere between eight to twelve jobs and a bus would create around seven, which would include salespeople, drivers, mechanics, cleaners and servicing staff.

Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income it is believed that the success story of the Indian automobile industry is not going to end soon.

Some of the major characteristics of Indian automobile sector are:

Second largest two-wheeler market in the world.
Fourth largest commercial vehicle market in the world.
11th largest passenger car market in the world
Expected to become the world's third largest automobile market by 2030, behind only China and the US. By the year 2016 the industry is expected to contribute 10% of the nation’s GDP.
The industry manufacturers over 11 million vehicles a year, employing more than three million people.
The greatest challenge and competition would be from the Chinese automobile industry. The Chinese automobile industry has been able to give stiff completion to India in terms of productivity, cost of manufacturing and technology. Again the present trend of excess manufacturing capability, reduced margins put additional pressure on the industry.
On the positive side, India’s strength in software sector, combined with skilled labor and low cost of manufacturing should place it in favorable position globally.
Recently Ratan Tata, Chairman (Tata Motors) created history by

launching the world's cheapest car NANO. The cars pricing is around one lakh, gaining instant recognition in the automobile industry across the globe. It heralded the coming to age of the Indian Automobile Industry.

PRODUCT SEGMENTATION OF THE AUTOMOBILE INDUSTRY

TWO WHEELER-75%	PASSENGER VEHICLE-15%	COMMERCIAL VEHICLE-6%	THREE WHEELER-4%
Motor cycles/motorbikes	Passenger Cars	Heavy Vehicle	Passenger Carriers
Scooters	Utility Vehicles	Medium Vehicle	Goods Carriers
Mopeds	Multi purpose vehicle	Light Vehicle

*Source: SIAM (Society Of Indian Automobile Manufacturers)

COMPANY OVERVIEW

Ø HISTORY

Tata Motors Ltd, Jamshedpur launches its first truck in collaboration with Benz. TATA Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1935 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy. In 2004 it acquired Tata Daewoo Commercial Vehicle, and in late 2005 it acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. It has formed a Joint Venture with Marcopolo of Brazil, and introduced low-floor buses in the Indian market. Recently, it has acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names. 1210 model is the first model produced by Tata Motors.

QUICK FACTS ABOUT TATA MOTORS

Founder : Jamsetji Tata

Year of Establishment : 1945

Industry : Automotive

Business Group : The Tata Group

Listings & its codes : BSE - Code: 500570

NSE - Code: TELCO & TATAMOTORS

NYSE - Code: TTM

Corporate Office : Bombay House 24, Homi Mody Street

Mumbai 400 001, India

Tel.: + (91)-(22)-56561676

Works : Jamshedpur, Pune, Lucknow, Dharwad,

Pantnagar and Sanand.

E-mail : am@tatamotors.com

rbc@telco.co.in (for international inquiries)

Website : www.tatamotors.com

www.tata.com/tata_moto

INTRODUCTION ABOUT THE COMPANY

Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company).

Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.^[4] Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005 was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa and Thailand.

Acquisitions

In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea.
In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company.
In 2007, formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market.
In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names.
In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of €1.85 million. The acquisition is in line with the company’s objective to enhance its styling/design capabilities to global standards.

After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'Tata Mobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially planned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors.

Joint ventures

Tata Marcopolo released a low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Chennai, Bangalore, Chandigarh and Lucknow.

Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and bus body design. Tata and Marcopolo have launched a low-floor city bus which is widely used by Chennai, Coimbatore, Delhi, Mumbai, Lucknow and Bangalore transport corporations. Its manufacturing facility is based in Dharwad.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with many small companies in various countries around the world.

Sales & service network

Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai.

Milestones

1945	1945 Establishment of Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products.
1948	1948 Introduced steam road roller in collaboration with Marshall Sons (UK).
1954	1954 JV with Daimler Benz AG (West Germany) to manufacture medium commercial vehicles. Within 6 months, the first vehicle rolled out.
1959	1959 Research and Development Centre set up at Jamshedpur.
1961	1961 In exports, the first truck shipped to Ceylon (now Sri Lanka).
1966	Setting up Engineering Research Centre at Pune to give impetus to the automobile Research and Development.
1971	1971 Introduction of DI engines.
1977	1977 The first commercial vehicle manufactured in Pune.
1983	1983 Commencement of manufacturing Heavy Commercial Vehicle.
1985	1985 First hydraulic excavator produced with Hitachi collaboration.
1986	1986 The first light Commercial Vehicle produced, Tata 407, indigenously designed and followed by Tata 608.
1989	1989 Tata mobile 206 - 3rd LCV model introduced.
1991	1991 Tata Sierra launched, TAC 20 crane produced and one millionth vehicle rolled out.
1992	1992 Tata Estate launched.
1993	1993 JV with Cummins Engine Co. Inc. for manufacturing of high horsepower and emission friendly diesel engines.
1994	1994 Tata Sumo and LPT 709 launched. JV with M/s Daimler-Benz/ Mercdes-Benz and Tata Holset Ltd., UK.
1995	1995 Launched Mercedes Benz car E220.
1997	100,000th Tata Sumo rolled out.
1998	Tata Safari and Indica launched. 2 millionth vehicle rolled out.
2000	First consignment of 160 Indicas shipped to Malta. Launch of Indica with Euro II engine, CNG buses and 1109 vehicle - Intermediate commercial vehicle.
2001	100,000th Indica wheeled out. Launch of CNG Indica. Exits JV with Daimler Chrysler.
2002	2,00,000th Indica and 5,00,000th passenger vehicle rolled out. Tata Engineering signed product agreement with MG Rover of the UK.
2003	Tata Engineering becomes Tata Motors Limited. 3 millionth vehicles produced. First City Rover rolled out.
2004	· Tata Motors and Daewoo Commercial Vehicle Co. Ltd. signed investment agreement and Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launched NOVAS, the heavy duty truck in Korea. · Listed on NYSE.
2005	5,00,000th passenger vehicle rolls out. Launch of Starbus and Globus (buses and coaches), Tata Ace (Indi's first mini truck) and Tata Novus, in India as well as in Korea by TDCV. New factory at Jamshedpur inaugurated for Novus.
2009	· Tata holds the honour of launching world's cheapest car Tata Nano in India with a price tag of Rs. 1, 00,000. Nano is a revolution for Indian car market.

Research and development

Tata Motors invests approximately up to 2 per cent of its annual turnover on research and development, with an emphasis on new product / aggregates development and technology up gradation. Its Engineering Research Centre in Pune employs over 1,400 scientists and engineers and has India's only certified crash-test facility and hemi-anechoic chamber for testing of noise.. The company also draws on the resources of leading international design and styling houses like the Institute of Development in Automotive Engineering, SPA, Italy, and Stile Bertoni, Italy. The company has also been implementing several environmentally sensitive technologies in manufacturing processes and uses some of the world's most advanced equipment for emission checking and control.

Environmental responsibility

Tata Motors has led the Indian automobile industry's anti-pollution efforts through a series of initiatives in effluent and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. All its products meet required emission standards in the relevant geographies. Modern effluent treatment facilities, soil and water conservation programmes and tree plantation drives at its plant locations contribute to the protection of the environment and the creation of green belts.

Corporate Social Responsibilities

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, its intervention is in both preventive and curative health care. 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 its vehicles and operations for constantly enhancing environment care.

SWOT ANALYSIS OF TATA MOTORS

The overall position of Tata Motors can be analyzed through the help of SWOT ANALYSIS.

Ø STRENGHTS

· India’s biggest automobile corporation with combined revenue of Rs 92,519 crores (USD 20billion) in 2009-2010.

· Tata Motors is a reputed brand world wide.

· Tata Motors is the leader in commercial vehicle almost in each segment.

· It’s the world’s fourth biggest truck producer and world’s second largest bus producer.

· It is a demand driven and customer oriented company.

· Tata Motors is said to be an innovative global leader. The company has to a very strong research and development department having over 3000 engineers and scientist.

· 4 million Tata vehicle ply on Indian roads.

· It is the first corporation to be listed in the NEW YORK STOCK EXCHANGE (2004).

· It is the global manufacturers of commercial and passenger vehicle.

· The company’s dealership, sales, services and spare parts network comprises over 3500 touch points.

· Tata Motors has been aggressively acquiring foreign brands to increase its global presence.

Ø WEAKNESSES

· Tata has not got a foothold in the luxury segment in its domestic market.

· It has undergone a harsh business and financial crisis. Tata’s commercial Vehicle business unit experienced a loss of Rs. 108.62 million it in its more than 50 years of history.

· Tata Nano needed much more time than predictable.

Ø OPPORTUNITIES

· Tata Motors can take advantage of their low cost car by entering into third world countries where people have low purchasing power. Thus opening a lot of export opportunities to developing countries such as Nepal, Pakistan etc.

· It should focus in developing luxury cars.

· Indian government’s proposal to bring clearness to the power division is a welcome sign for the sector. More management between the center and state for infrastructure progress is a step in the right.

· Global economics is recovering after the worlds’ worst crisis ever.

Ø THREATS

· Instability in the cost of steel and crude on the back of erratic global demand is a major obstacle in profit enlargement.

· Recent development in the international economics is very slow due to the ongoing sub prima crisis and the resultant global financial crisis.

· Tata Motors have a low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will be no competitive advantage.

· Other companies are starting to compete for some of this market share. In fact, the Pakistan’s Transmission Motor Company has built a basic four-wheeler for only $2,100. This is going to be the beginning of new emerging car manufacturers that will be producing low priced cars.

· Rising prices of petrol , diesel ,and CNG .

Product profile

Segment and Brands

Passenger cars

and utility vehicles

Commercial vehicles

Military vehicles

Ø Tata Sierra

Ø Tata Estate

Ø Tata Sumo/Spacio

Ø Tata Safari

Ø Tata Indica

Ø Tata Indigo

Ø Tata Indigo Marina

Ø Tata Winger

Ø Tata Nano

Ø Tata Xenon XT

Ø Tata Xover (2009)

Ø Tata Ace

Ø Tata TL/Telcoline/207 DI Pickup Truck

Ø Tata 407 Ex and Ex2

Ø Tata 709 Ex

Ø Tata 809 Ex and Ex2

Ø Tata 909 Ex and Ex2

Ø Tata 1109 (Intermediate bus)

Ø Tata 1510/1512 (Medium bus)

Ø Tata 1610/1616 (Heavy bus)

Ø Tata 1613/1615 (Medium truck)

Ø Tata 2515/2516 (Medium Bus)

Ø Tata Starbus (Medium Bus)

Ø Tata Marcopolo Bus

Ø Tata 3015 (Heavy truck)

Ø Tata 3118 (Heavy truck) (Tata 3516 (Heavy truck)

Ø Tata 4923 (Ultra-Heavy truck) (6X4)

Ø Tata Novus (Heavy truck designed by Tata Daewoo)

Ø World Truck

Ø Tata LSV (Light Specialist Vehicle)

Ø Tata 2 Stretcher Ambulance

Ø Tata 407 Troop

Ø Carrier, available in hard top, soft top, 4x4, and 4x2 versions.

Ø Tata LPTA 713 TC (4x4)

Ø Tata LPT 709 E

Ø Tata SD 1015 TC (4x4)

Ø Tata LPTA 1615 TC (4x4)

Ø Tata LPTA 1621 TC (6x6)

Ø Tata LPTA 1615 TC (4x2)

Core Purpose, Value and Vision & Mission

Ø Our Core Values

Integrity Customer focus Corporate Citizenship Passion for Engineering.

Ø Purpose

To create economic assets for road transportation for bulk movements of goods and people and participate in managing these over the life of assets in order to create and capture economic assets.

Ø Our Vision

To be a world class corporate constantly furthering the interest of all its stakeholders.

Our Mission

Ø Shareholders

To consistently create shareholder value by generating returns in excess of weighted average Cost of Capital during the upturn and at least equal to weighted average cost of capital during the downturn of the business cycle.

Ø Customers

To strengthen the TATA brand and create lasting relationships with the

customers by working closely with business partners to provide superior

value for money over the life cycle.

Ø Employees

To create a seamless organization that incubates and promotes innovation, excellence and the Tata core Values

Ø Vendor and Channel Partners

To foster a long term relationship so as to introduce a broad range of

innovative products and services, that would benefit our customers and

other stakeholders.

Ø Community

To proactively participate in reshaping the country’s economic growth. To take a holistic approach in environmental protection.

PRODUCT LINE OF TATA MOTORS LIMITED

POSITIONING OF TATA MAGIC

Magic is the passenger version of the Tata Ace. Tatas have created a new segment since there is no seven-seater vehicle in this segment in the market. Tata magic has been positioned both at the rural and urban segment. Tata Motors has always been at the forefront with its commitment to offer transportation solutions which will change the way India travels. Thus Tata magic is positioned to replace the three wheeler segment of the market. It is designed in a way which could be suitable in both the rural and urban segment as it would give more operating profits to the owner and comfort to the passenger.

POSITIONING

PRODUCT PROFILE (TATA MAGIC)

The Tata Magic is a Micro van launched by Tata Motors in June 2007. The Magic is the passenger version of the Ace mini-truck; the new Magic features an all-steel cabin. It offers a flexible seating capacity of 4-7 passengers with adequate legroom. Powered by a 16 bhp (12 kW), 702 cc water-cooled diesel engine, the Magic offers high fuel efficiency and very low maintenance. The 12-inch tyres provide higher ground clearance, and the rigid front axle is designed to handle tough roads. The Magic's turning radius of 4.3 meters (14.1 ft) is nimble enough to navigate the bylines and traffic of India's crowded cities. The Magic has a clearly visible instrument cluster, utility tray and a digital clock in the dashboard and also a provision for fittinga radio.

The Magic meets BS-III emission norms and has been developed for use in any market — be it urban, semi-urban or rural. It is backed by a

36,000 km/12-month warranty. The Magic range starts at Rs 2.90 lakh (exshowroom). Magic had being launched nation-wide, starting with Maharashtra and Gujarat, after which availability was extended to other parts of the country in a phased manner.Whether it is a hub town or a village, the Magic can very well ferry passengers with ease and comfort. The rigid front axle of this vehicle has specifically been designed keeping in mind the Indian conditions. It can very well and safely navigate through the narrow countryside streets or roads

where it seems difficult for other vehicles to do so.

As far as safety is concerned, the Magic meets all the safety norms. There is absolute safety for drivers and passengers, as it incorporates door intrusion beams, seatbelts for drivers and passenger cabin and vacuum assisted brakes for excellent braking performance and large windscreen for better driving visibility. In addition to this, it meets all the safety standards for static roll over and roof crush because of its hard top and tubular construction. Above all, you can have an easy and safe reversing because of the two box tail lamp with an inbuilt reflector and a bright reverse lamp.

The colors available with magic are:

TATA MAGIC PASSENGER

1.	ENGINE
	Model	TATA 275 IDI NA
	Type	4- stroke, naturally aspirated, indirect injection diesel engine
	Max Output	16hp @3200 rpm
	Max. Torque	38 nm @2000rpm
	Displacement	702 cc

2.	CLUTCH	Single Plate dry Friction diaphragm type 170 dia

3.	GEAR BOX	GBS 65-4/6.31
	TYPE	Synchromesh (4 forward gears), Sliding Mesh(reverse gear)
	Rear Axle	Single Reduction, High powered gears and semi-floating axle

4.	STEERING	Mechanical, Variable Ratio (20.5 to 24.5), 380 mm dia

5.	BRAKES
	TYPE	Vacuum Assisted Dual circuit hydraulically activated
	Front	Disc Brakes
	Rear	Drum Brakes (200mm dia×30mm)

PRICE

Vehicle	3 WHEELER/MINI DOOR	TATA MAGIC	M&M SAVARI/COMMANDER	SWARAJ MAZDA/TATA WINGER	BUSES
SEATER	3+1	7+1	8 to 10	10 to 13	16 AND MORE
PRICE(LAKHS)	1.25-1.75	3.1	6	7 to 10	MORE THAN 10

PLACE

The Tata Magic has been launched nationwide in a phased manner, starting with Maharashtra and Gujarat. While the diesel versions of Tata Magic has launched now, the CNG version of Magic will be launched later in the year. Tata Magic has targeted places in the rural areas such as village transport and transportation in routes. It is also launched in places in semi urban areas.

PROMOTION

Tata Magic has been promoted by doing customer meets of 3 wheeler. These meets are conducted to know there feedback on 3 wheeler and promote the new 4 wheeler. Special discounts, up gradation schemes and launching of Tata magic at different places. Finance up to 2.5 lakhs and easy finance through all banks like Bank of India, Chola Mandalam , and Sri Ram Finance.

Target segments

Market Segmentation of Tata Magic

Ø Rural Transportation

Ø School transportation within radius of 20 km

Ø Commutation in Urban Areas.

Ø Taxi Segment

SWOT ANALYSIS OF TATA MAGIC

STRENGHTS	WEAKNESSES
1. Brand Perception of Tata Motors	1.Complaints of gear shifting
2. First mover advantage	2. Higher cost than 3 wheeler
3. Good consumer relationship.	3. After sale service- has not been up to mark keeping in mind for owner of small Passenger Customers
4. Continuous innovation.
5. Provision of finance to buyers from Tata Motors Finance .
6. Good Production capability.
7. Good After Sales Service- Presence through Exclusive TAS( Tata Authorized Service Centre ) at every 50 Km.
OPPORTUNITIES	THREATS
1. Rural untapped markets	1.Further fragmentation of the market
2. Export segment	2. Increased competion
3.High growth rate in the Rural Transport segment	3.Creation of a new segment –M&M Gio

COMPETITORS REVIEW

Until a decade ago, the auto sector in India had been a relatively protected industry limiting the entry of foreign companies with high tariffs against imports. Today, as part of a broader move to liberalize its economy, India has opened up the sector to Foreign Direct Investments, and since then has also progressively relaxed trade barriers. Today, almost all of the major global companies are present in India producing two-wheelers and passenger cars in almost all segments.

Over the years the world has been witnessing tremendous development in the sector of automobile industry. With their advanced engineering techniques, the major auto giants like Tata, Maruti , General Motors, Hyundai, Mitsubishi etc have come up with most sophisticated vehicle that a human mind could have hardly imagined just a few years ago. It is not only the cars, consumer vehicles and two wheelers are also been sold in large numbers, but the three wheeler market is also quite big in the south east nations. We can see innumerable three wheelers running on the roads of various Southeast Asian countries like India, Thailand Sri Lanka, Pakistan, Philippines, Nepal, and Bangladesh etc.

There are a number of reasons that have resulted into the proliferation of three wheelers in umpteen countries. Three wheelers are quite economical in terms of manufacturing and maintenance. They have also earned huge popularity due to their easy maneuvering capabilities through the narrow lanes that are prevalent in most of the developing countries. The two and four wheelers are quite a hit all around the world. The two wheelers have undergone significant transformation resulting in categories like scooters, mopeds and motorcycles, the four wheelers also have come up with different shape, size design and forms and also have evolved into so many forms with light and heavy commercial vehicles. However it is the three wheeler segment of the automobile that has lagged behind.

No wonder, as against them, the number of popular three wheeler manufacturers is quite limited and in India, One comes across only three leading three wheeler manufacturers. The leading three wheeler manufactures in India are Bajaj Auto, Mahindra & Mahindra, the Italy based Piaggio and Force Minidor. While Bajaj Auto is one of the leading name in the Indian two wheeler segment and Mahindra & Mahindra is known more for its jeeps like Bolero and Scorpio.

Mahindra & Mahindra has got the Champion range of three wheelers. There are Champion pick up and Champion delivery vans while the Champion Passenger carriers is mostly seen in the western parts of the country. The Alfa three wheeler carriages of the Mahindra & Mahindra has a wide and tall cabin, heavy duty gear box, unique designed chassis and hydraulic shock absorbers.

The Italian auto major Piaggio manufactures Ape 50 in association with Bajaj Auto at Pune with 150cc engine. This three wheeler has different body forms and matches the specifications of various countries wherever it is produced.

Force Motors Limited is an automobile company, which was earlier known as Bajaj Tempo Limited. The name change has been effected from 21^st February, 2006. The company possesses expertise in the design, manufacture and development of its comprehensive range of automobile components, vehicles and aggregates. Three wheelers from Force Motors Limited come as the Minidor family. The Minidor family comprises a host of customized three wheelers. These vehicles are beautifully engineered. The three wheelers from Force Motors are economical, eco-friendly and tough ones. These vehicles are efficient transport options for humans and goods alike.

TATA MAGIC WITH SMALL 3-WHEELER

*S.No*	*Parameters*	*Ape*Magic	*Magic*	*Advantages*

1	Engine Capacity (cc)	395 (1 Cyl)	702 (2 Cyl)	Reliable Engine, Lesser Maintenance
2	Engine Power (HP)	8	16	More Power, More Speed
3	Torque (NM)	16	38	More Pulling power, lesser gearshifts
4	Fuel Tank (ltrs)	10	30	More distance without refueling
5	Speed (Kmph)	50	64	Faster Turnaround, More Trips
6	No. of seats	3	6&7	More Passengers, More Earning
7	Position of Engine	Rear	Front	More Passenger Comfort
8	No. of Wheels	3	4	More Safety
9	Rollover Test	No	Yes	More Safety
10	Roof Top	Soft	Hard	More Safety
11	Shower Proof	No	Yes	All weather proof

TATA MAGIC WITH LARGE THREE WHEELERS

Sl	*Parameters*	*Vikram*	*Champion*	*Magic*	*Advantages*

1	Engine Capacity (cc)	510 (1 Cyl)	510 (1 Cyl)	702 (2 Cyl)	Reliable Engine, Lesser Maintenance
2	Engine Power (HP)	10	10	16	More Power, More Speed
3	Torque (NM)	22	27	38	More Pulling power, lesser gearshifts
4	Fuel Tank (ltrs)	10	10	30	More distance without refuelling
5	Speed (Kmph)	54	54	64	Faster Turnaround, More Trips
6	No. of seats	6	6	7	More Passengers, More Earning
7	Position of Engine	Rear	Rear	Front	More Passenger Comfort
8	No. of Wheels	3	3	4	More Safety
9	Tyre Size	10”	10”	12”	Better Grip & Stability
10	Rollover Test	No	No	No	More Safety
11	Roof Top	Hard	Soft	Hard	More Safety

TATA MAGIC WITH Mahindra maxximo

*S.No*	*Parameters*	Maxximo	*Magic*

1	Engine Capacity (cc)	909 (2 Cyl)	702 (2 Cyl)
2	Engine Power (HP)	25	16
3	Torque (NM)	55	38
4	Fuel Tank (ltrs)	30	30
5	Speed (Kmph)	70	64
6	No. of seats	7&8	6&7
7	Position of Engine	Front	Front
8	No. of Wheels	4	4
9	Rollover Test	No	Yes
10	Roof Top	hard	Hard
11	Shower Proof	Yes	Yes

TATA VENTURE, MAHINDRA XYLO & CHEVROLET TAVERA

SPECIFICATIONS

Engine	Tata Venture GX 5,07,000	Mahindra Xylo E4 BS IV 7,90,400	Chevrolet Tavera B2-7 seats BSIII 7,35,287
Engine Type	Turbo Diesel engine	In-Line Engine	In-Line Engine
Engine Description	475 IDI, Turbo Intercooled Diesel Engine	2.5L 112bhp m-Eagle CRDe, 4-cyl. Turbocharged	2.5L 80bhp Direct Injection Turbo Diesel
Engine Displacement(cc)	1405	2498	2499
No. of Cylinders	4	4	4
Maximum Power	71 PS at 4500 rpm	112bhp at 3800 rpm	80 @ 3,900 (PS@rpm)
Maximum Torque	135 Nm at 2500 rpm	260 Nm at 1800-2200 rpm	19 @ 1,800 (kgm@rpm)
Valves Per Cylinder	4	4	2
Turbo Charger	Yes	Yes	Yes

Transmission- Steering- & Brake System	Tata Venture GX 5,07,000	Mahindra Xylo E4 BS IV 7,90,400	Chevrolet Tavera B2-7 seats BSIII 7,35,287
Transmission Type	Manual	Manual	Manual
Gear box	5 Speed Manual Transmission	5 Speed	5 Speed
Drive Type	Two Wheel Drive	Two Wheel Drive	Two Wheel Drive
Steering Type	Power	Manual	Manual
Front Brake Type	Disc	Ventilated Disc	Ventilated Disc
Rear Brake Type	Drum	Drum	Drum

Fuel & Other Specifications	Tata Venture GX	Mahindra Xylo E4 BS IV	Chevrolet Tavera B2-7 seats BSIII
Mileage-City (kmpl)	11.5	11.0	11.5
Mileage-Highway (kmpl)	15.42	14.0	14.8
Fuel Type	Diesel	Diesel	Diesel
Fuel Tank Capacity (litres)	35	55	55
Emission Norm Compliance	BS III	BS IV	BS III
Seating Capacity	8	7	7

FEATURES

Comfort & Convenience	Tata Venture GX 5,07,000	Mahindra Xylo E4 BS IV 7,90,400		Chevrolet Tavera B2-7 seats BSIII 7,35,287
Power Steering	Yes	Yes		No
Power Windows-Front	Yes	Yes		No
Automatic Climate Control	No	No		No
Low Fuel Warning Light	Yes	Yes		Yes
Accessory Power Outlet	Yes	Yes		No
Vanity Mirror	Yes	No		No
Rear Reading Lamp	Yes	No		Yes
Height Adjustable Front Seat Belts	Yes	No		No
Cup Holders-Front	Yes	Yes		No
Seat Lumbar Support	Yes	No	No

Interior

Tata Venture

Mahindra Xylo

E4 BS IV

Chevrolet Tavera

B2-7 seats BSIII

Air Conditioner

Yes

Heater

Yes

Adjustable Steering Column

Yes

Tachometer

Yes

Electronic Multi-Tripmeter

Yes

Fabric Upholstery

Yes

Glove Compartment

Yes

Digital Clock

Yes

Digital Odometer

Yes

Exterior

Tata Venture

Mahindra Xylo

E4 BS IV

Chevrolet Tavera

B2-7 seats BSIII

Fog Lights – Front

Yes

Manually Adjustable Ext. Rear View Mirror

Yes

Rear Window Washer

Yes

Rear Window Defogger

Yes

Wheel Covers

Yes

Tinted Glass

Yes

IntergratedAntenna

Yes

SAFETY FEATURES	Tata Venture GX Price- 5,07,000	Mahindra Xylo E4 BS IV Price- 7,90,400	Chevrolet Tavera B2-7 seats BSIII Price- 7,35,287
Power Door Locks	Standard	Standard	Not Available
Child Safety Locks	Standard	Standard	Standard
Passenger Side Rear ViewMirror	Standard	Standard	Standard
Halogen Headlamps	Standard	Standard	Standard
Rear Seat Belts	Standard	Standard	Standard
Side Impact Beams	Standard	Standard	Standard
Front Impact Beams	Standard	Standard	Standard
Adjustable Seats	Standard	Standard	Not Available
Engine Immobilizer	Standard	Standard	Not Available

SURVEY ANALYSIS

SAMPLE DESIGN

Ø DETAILS OF THE SURVEY CONDUCTED

Sample Size	65
Vehicle type	· Mahindra Maxximo · Tata Magic
Target Population	· Maxximo & · Magic drivers · Owner and driver · passengers
Location	Saraikela,Kharsawa, Chaibasha,Chakardharpur Jamshedpur
Duration of the surveys	15 days
Type of questionnaire	Structured
No. of Questions	15

1, Number of vehicles surveyed:-

Type of vehicle

percentage

numbers

Magic

60%

Maxximo

40%

2 ,Type of respondents:-

Type of respondent

percentage

numbers

Owner and Driver

31%

Passenger

69%

COMPARATIVE ANALYSIS

1. DESIGN

ANALYSIS:-

With the existing design of Mahindra Maxximo 100% were strongly agreed that the design of Mahindra Maxximo is better than its competitor TATA Magic because of its car like interiors and pack body which is giving the look of Mahindra Xylo from back side .

2 , MILEAGE:-

v Source- KMPL test report of 31/07/2011

ANALYSIS: 90% of the respondents agreed upon that TATA MAGIC has good mileage considering the fact that it is four wheeler and has more carrying capacity than Maxximo van.

KMPL DISPLAY SCREEN FOR 7- PASSENGER


VEHICLE TYPE	TATA MAGIC	MAHINDRA MAXXIMO
Trial no	1	1
Area Office	Jamshedpur	Jamshedpur
Engineer Name	RANGA SWAMY	RANGA SWAMY
TSM	ASHUTOSH SINHA	ASHUTOSH SINHA
Reporting Month	31-Jul-11	31-07-2011
Trial Type	B2B	B2B
B2B Chassis	MAIFB2MCRB6D40623	MAT445112BVE39153
B2B Date	31-07-2011	31-07-2011
Make	TATA MOTERS	Mahindra
Model	Magic	Maxximo Mini Van
Chassis No.	MAT445112BVE39153	MAIFB2MCRB6D40623
Cumulative Kms	470	2482
Engine No.	2751D106EYYS83915	MCB6D13406
Engine Type	2751D106	CRDI
Emmision	BSIII	BSIII
Trial Date	31-Jul-11	31-Jul-11
Trial Kms	155	157
Trial hrs	NA
ULW (Kgs)	1000	1090
GVW (Kgs)	1480	1570
Payload (Kgs)	480	480
Goods Carried	Passanger	Passenger
No of passengers	8	8
Avg Speed (Kmph)	48	50
Max Speed (Kmph)	60	70
Fuel Topped (Lts)	10	12.48
Engine oil Topped (Lts)	0	0
KMPL	15.5	12.5
Operation	Highway	Highway
Terration	Plain metalled	Plain Metalled
Application	Pick up	Pickup
Retro code	NA	NA

KMPL DISPLAY SCREEN FOR 12- PASSENGER


VEHICLE TYPE	TATA MAGIC	MAHINDRA MAXXIMO
Trial no	1	1
Area Office	Jamshedpur	Jamshedpur
Engineer Name	RANGA SWAMY	RANGA SWAMY
TSM	ASHUTOSH SINHA	ASHUTOSH SINHA
Reporting Month	31-Jul-11	31-Jul-11
Trial Type	B2B	B2B
B2B Chassis	MA1FB2MCRB6D40623	MAT445112BVE39153
B2B Date	31-07-2011	31-07-2011
Make	TATA MOTERS	Mahindra
Model	Magic	Maxximo Mini Van
Chassis No.	MAT445112BVE39153	MA1FB2MCRB6D40623
Cumulative Kms	441	2451
Engine No.	2751D106EYYS83915	EYYS83915
Engine Type	2751D106	CRDI
Emmision	BSIII	BSIII
Trial Date	31-Jul-11	31-Jul-11
Trial Kms	29	29
Trial hrs	NA	NA
ULW (Kgs)	1000	1090
GVW (Kgs)	1720	1810
Payload (Kgs)	720	720
Goods Carried	Passanger	Passenger
No of passengers	12	12
Avg Speed (Kmph)	50	54
Max Speed (Kmph)	60	65
Fuel Topped (Lts)	1.95	2.45
Engine oil Topped (Lts)	0	0
KMPL	14.87	11.81
Operation	Highway	Highway
Terration	Plain metalled	Plain Metalled
Application	Pick up	Pickup
Retro code	NA	NA

2. SEATING CAPACITY:

ANALYSIS:-

Out of the total respondent 95% were strongly agreed that the

seating capacity in TATA MAGIC is more than its competitors. And rest 5% who were somewhat disagree were Maxximo owners or drivers. And for driver seat MAXXIMO has got 50% more cabin space where one passenger can comfortably seat.

3. PICK UP :

ANALYSIS: Out of the total respondent surveyed majority ( 90%) were strongly agree that the Maxximo has a better pick up as compare to its competitors whereas 5% were somewhat agree that pick up of the Magic is not really worse in comparison of Maxximo.

4. SPEED:-

ANALYSIS:

Comparing the speed of Maxximo van with Magic, 30% of the respondents were strongly agreed that it has more speed than its competitors and none of them were at all disagreed as it has 10kmph more speed than its competitors.

1. INCREASE IN SOCIAL STATUS:-

ANALYSIS:- Maxximo van increases the social status of the user as it gives the car type feelings and xylo look. Thus majority of respondent (50%) some what agreed that Maxximo Van as compared to its competitors TATA Magic increases their social status.

FEEDBACK REPORT

FINDINGS

As I worked on this project, I came across many things. This was really good learning for me. My findings while working on this project are:

CHALLENGES FACED

1. LOW PICK UP:

Low-pick up was the major problem that was faced by the customers. Customers expected that being a vehicle of TATA Motors and four wheeler vehicle it should have more pick up

2. GEAR BOX :

Gear shifting was also one of the problems faced by the customers. The complaint was that when gear shifts from 2nd to 3rd it creates some problem. Few said that the height of the gear box is bit high if it would have been in the level of the seat they could accommodate one person in the front.

3. COLOUR :

There were very few customers came up with colour problem. They said that, as auto or other six- seaters are in market since a long time and are of yellow and brown/ black colour this has created an image that commercial passenger vehicle is only of yellow and brown/black colour. Thus people generally do not approach TATA Magic (red and white colour) in the areas where the product is not familiar. Passenger thinks that it is a private vehicle.

4. MILEAGE :

Average mileage of the vehicle is coming between 15-17 km/l because of which many consumers are not satisfied.

5. AVERAGE EARNING:In short routes the competitor of Magic earns more but in long routes Magic’s average earning is more and hence Magic is more viable in long routes .

ADVANTAGES

1. Beneficial in long routes:

In our survey we can analyze that Magic running in long distance is in much profit when compared to other vehicles.

2. Tyre:

Tyre life, of Magic is more than the other vehicle which certainly decreases the variable cost in long run.

3. Drivers comfort:

Driver has his separate independent seat which increases his driving comfort. One of the respondents said that “ I have my own seat so I don’t face any problem in driving if the number of passengers are more than 20 also (which sometimes happen) they adjust themselves anyhow and my responsibility is to drop them safe”

4. Shower proof:

On rainy season customers will prefer Magic over Minidor as it has gone through the shower proof test successfully, so chances of customers getting wet or even spoiling their clothes is minimal.

5. Noise free:

Compare to other three wheeler Tata Magic advance engine make less noise and make travelling more comfortable, unlike other three wheeler Tata magic does not have engine at back and therefore makes less noise and does not irritate the passengers.

6. Comfortable seats:

Tata Magic wide seats provide good seating comfort to the passengers , the leg space in Tata Magic is more compared to other three wheelers .This is very necessary for long distance routes . The cushion of the seats is better than other three wheelers and therefore provides better seating comfort to the passenger.

Demand generation of Small Commercial Passenger –Tata Magic , Tata Winger & Tata Venture in Untapped Market.

MARKETING TO RURAL INDIA

PROCESS DRIVEN MARKETING OF FMCG COMPANIES

On one side are the fast-moving consumer goods (FMCG), the consumer durables companies, the automobile industry etc. On the other are consumers in rural India, potentially the largest segment of the market. Finally, the two are coming together.

In several categories, rural India already accounts for the lion's share. According to MART, a New Delhi-based research organization that offers rural solutions to the corporate world, rural India buys 46% of all soft drinks sold, 49% of motorcycles and 59% of cigarettes. This trend is not limited just to utilitarian products: 11% of rural women use lipstick.

Other numbers are equally revealing. According to the National Council of Applied Economic Research (NCAER), an independent, non-profit research institution, rural households form 71.7% of the total households in the country. Spending in this segment is growing rapidly and consumption patterns are closing in on those of urban India. No company today can afford to forget that the rural market is a very big part of the Indian consumer market. One can't build a presence for a brand in India unless one uses a strategy for reaching the villages.

Several European multinational firms -- and a few U.S. firms -- have been making inroads into rural India for years. Companies such as Unilever, Phillips and Nestle have long been known to India's rustic dukaandaars, or merchants. Among U.S. firms, companies such as Colgate and Gillette have made considerable headway. Marketing to rural customers often involves building categories by persuading them to try and adopt products they may not have used before.

According to NCAER, the low penetration rates can be attributed to three major factors: low income levels, inadequate infrastructure facilities and different lifestyles. But income levels are going up, infrastructure is improving and lifestyles are changing.

CAR COMPANIES DRIVE TO RURAL INDIA TO BOOST SALES

Car companies are driving to smaller towns and rural areas to explore a big market in the 'real India' as metros are becoming more packed and competitive.

Companies like Maruti, Hyundai, General Motors and Mahindra are beefing up operations in the non-metro markets where aspirations are high and desire to own a four-wheeler is rising. And, a positive factor in these markets are - low penetration levels and less dependence on loans.

Maruti Suzuki, the biggest carmaker of the country, recorded almost 20% or one-fifth of its sales from non-metro markets in 2010, up from 3.5% about three years back. GM witnessed nearly 60% of its sales coming from these emerging markets.

Rural market has become a substantial and crucial market for automobile industry. Maruti already has a strong hold in the smaller markets and is making further attempts to shore up its presence to ensure that it penetrates even the remotest of the areas. They are developing a database, mapping territories almost village by village to ensure that brand Maruti is available at almost anywhere in the country.

Aspirations are fast growing in these areas, including the rural belts because the roads are getting better which is an important factor that aids sales of cars. For Hyundai, small towns and rural areas (beyond top 40 cities) contributed as much as 30% to overall sales in the last year. This used to be around 18-19% around five years back. The numbers have been growing and now they are also expanding their network in these areas.

The insulation of the markets from other factors like stock market volatility also makes them a safe bet. This was evident during the global economic crisis (late 2008 and 2009) when non-urban markets continued to grow, while metros suffered.

GM India has undertaken a series of measures to be a strong player in these markets. While they have extended their partnership with the State Bank of India to reach many smaller markets, GM is also playing an active role in many local functions and events in these areas to increase visibility. For example, they sponsor local events and community programmers where they also display their cars, while offering finance solutions. This makes the brand visible right in the heart of the market.

Maruti has also undertaken a series of panchayat-level programmers. The company has appointed over 5,000 Resident Dealer Sales Executives (RDSEs) for the semi-urban and rural areas, covering almost all 3,500 tehsils. RDSEs are salesmen from the local community. They stay in the rural areas. These salesmen are formally educated but may not be 'slick language masters'. What is important is that they vibe well with the local community and provide reassurance about a high-value item like cars.

Objectives of the Project

The Following are the objectives of the study:

· Does a rural market for CVs exist, and how can it be tapped?

· To understand Demand drivers of Small Commercial Passengers in Rural Areas.

· Steps for Rural Marketing and initiation of new steps for Promotion of Commercial passengers in Untapped Rural markets.

· How to get maximum coverage of Untapped markets in rural segments through additional Manpower.

· Do channel sales through NGOs workers can get coverage of Untapped market in Rural Areas?

· The objective is to work with the NGOs, NHRM and Block Officers and sell t small commercial passenger vehicle TATA MAGIC through the workers under them.

METHODOLOGY

Type	Methods	Technique
Field Research	Participant Observation	Mass Behaviors

PROCEDURE

Participant Observation.

PRODUCT

Tata Magic & Tata Winger

AEAR OF OPERATION

Jamshedpur, Chaibasa, Saraikela.

PROBLEM FORMULATION

Average sale of 30 vehicles/month is not able to reach. How to reach the rural market and ultimately increase monthly retail?

SUMMARY

The Project is based on Demand generation of Small Commercial Passenger –Tata Magic & Tata Winger in Untapped Market. In Jamshedpur, Tata Motors has their Dealer Network –Mithila Motors.

Coverage of Mithila motors:

3 S	1 S
Jamshedpur	Chaibasa
	Chandil
	Bistupur

3 S- Sales , Service & Spares , 1 S- Sales Point

Manpower Coverage of Mithila Motors for Magic Team

*Mithila Motors Dealer sales Executive*		*Coverage Area*
Subash Prasad- Sales Manager	Rajnikant	Manoharpur
	Akshay	Showroom Executive-all area where ever Enquiry has come
	Varun	Saraikela
	Hemant	Chandil
	Raj Ratan	Jamshedpur- Urban city
	RAMESH PODEL	ChaiBasa
	MD.AKHLAQUE	Chakradharpur
	RAJ WANS	Ghatsila & Behraghorra
	MIRTUNJAY SRIVASTAVA	Bistupur, Ghamaria

Average Target of Magic /month for Dealership – 30 Vehicles.

Average Productivity/Executive as per Tata Motors Norms- 3 Vehicle/ Executive.

Key Influencers for Buying SCV-Passenger

If we have to increase our Volume either we have to increase manpower for coverage or work for Indirect Coverage of territory through

· Gram Seva Network - Gram Sewa is a unique referral program for Kirana shop owners and vegetable vendors in mandis. It can be started as a result of an insight drawn from the customer information database .

· Petrol Pumps Outlets : Vehicle Display at Petrol Pump Outlets in Rural Areas. As most of Vehicle Owners/Drivers use to come at Petrol Pumps for Refueling . Enquiries can be tapped at these Outlets .

· NGOs /NRHMs : NGO/NRHMs work in Rural Areas in association with Block Offices.They have Rural Workers who go in various Villages for working of Rural Developments. They have continuos meets with Gram Panchayats / Block Officers / SHG workers for rural initiatives. They can be good Opinion Leaders for SCV P purchase .These Vehicles can act as source of income for Rural Population .

After Analysis of Indirect Coverage of above 3 Ways, I have done Study of NGOs/NRHMs for generating Demand and coverage of Untapped Rural Markets of SCV-P .

SWOT Analysis of working Through NGOs/NRHMs:

STRENGTH	WEAKNESS
1. Rural Network Coverage	1.They work for NGOs .So to cope up time for potential vehicle customer is not easy.
2. Large No. of Workers in Rural Areas	2. NGOs workers work for commmission .
3. Aware of Govt Funds/Schemes to buy Vehicle through SGSYs, NREGA Schemes, Mahila Samiti Schemes	3. They Can give refernces from remote areas , where Banks /NBFCs will not be ready to provide finance.
4. Good Liasioning with Rural Block Offices/ Gramin Banks to finance vehicle for Rural People	4. Permission from concerned Authorities to take time for giving Demo/ Training to NGOs Workers for Product or Sales Training.
5. As they are regular visitors to different Block and Villages ,they have good relations with VLW and SHGs, they can easily tap enquiries and convince potential Customers	4. Maintaining Enquiry at Single window where Enquiry from Dealership Executive and NGOs workers should be cross checked.
OPPORTUNITIES	THREAT
1. NGOs workers work for FMCGs also in regular routine on commission basis . So Convincing them to sell SCV P could be worth.	1. If we give a fixed incentive after certain time Block level Officers will also demand and actual workers will not get benefit
2. Coverage of rural areas,prorper feedback and traking of rural potential customers would be easy.	2. Leak of information to competitiors.

Points in Favour of Generating Vehicle Enquiry Through NGOs :

Ø Coverage of Untapped Market in Rural Areas.

Ø Appointment of Exclusive Manpower at Dealer End who will coordinate with NGOs and perform activities for promotion. This Executive will be responsible for Enquiry Cross Check at Dealer Executive and Through NGOs., whether same enquiry present at Dealership is again given by NGOs.

Ø Responsible for Incentive Settlement.

Working Pattern of NRHMs /NGOs.

The National Rural Health Mission (2005-12) seeks to provide effective healthcare to rural population throughout the country with special focus on 18 states, which have weak public health indicators and/or weak infrastructure.

These 18 States are Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Jammu & Kashmir, Manipur, Mizoram, Meghalaya, Madhya Pradesh, Nagaland, Orissa, Rajasthan, Sikkim, Tripura, Uttaranchal and Uttar Pradesh.

It seeks to improve access of rural people, especially poor women and children, to equitable, affordable, accountable and effective primary healthcare.

HOW DOES THE NRHM WORK IN JHARKHAND

Jharkhand has a rural population of 26922731, with 24 districts, 212 blocks and 32615 villages. There are various NGOs working under UNICEF and WHO.NRHM is one of the active NGO who looks after the rural health.

Village health committees (VHCs) are formed through community empowerment i.e. through NGOs. These VHC work with “ANM” i.e. Aunty Natal Mother and “SAHIYYA”. ANMs are the nurses and sahiyyas are trained people who help the ANMs and these two are supported by the NGOs. Sahiyyas works for the VHCs and these VHCs pay for the services.

The work of the sahiyya is to bring the pregnant women to the PHCs with the help of ANMs. Their main work is to arrange proper vehicle or ambulances (if available) and send the ladies for their delivery from their home to the hospital. Every center or the block has a block officer who looks after the working and funding of the blocks by the NGOs. There are several “agan badi” and “gram parik” under each block. Every center has a group of ANM as the head who looks after their allotted agan badi. Sahiyyas works under the ANM. The nurses and the Sahiyyas also look after the health care of the rural areas. Every block has a weekly meeting and a monthly report of the work done by the ANM and Sahiyyas. In the meeting, there are various things that are discussed, for e.g. About a disease which has attacked a particular village, remedies to be taken, funds required, etc. The block also has functions such as Village Nutrition Day.

Every block has a day fixed in the week when they conduct the meeting with ANM. There are several training sessions for the Sahiyyas held at different places by the NGO. Numbers of sahiyyas in the training differ with different sessions and places. When there is a yearly training the number of sahiyyas present are around 2000 approx.

ACTION PLAN

We have planned to penetrate into the rural area through these NGOs. These NGOs have a better reach in the rural areas and with the help of these NRHM officials, ANMs and Sahiyyas. Tata Motors along with Mithila Motors is planning schemes through with both the parties would be benefitted. Executives from the Mithila Motors would meet each block officers during their weekly meeting and also talk to the ANM and Sahiyyas and explain them about the SCV-P(Magic & Winger) and the scheme.

These NGO worker work for other companies like ITC and Tractor Companies also. They work for their rural retailing of the ITC products.

Working : Government gives schemes to Block for rural development through Block Offices. Block Development officers distribute funds to different Mahila Samiti Societies and Village level Societies for development on recommendation of S.H.G (Self Help Group) and V.L.W ( Village level Workers) . These small societies consist of min 9 and max 13 members . Initial Rs 25,000 loans is given to these groups , if they repay within stipulated time then simultaneously step by step funding increased upto Rs 5 lacs . These fund are utilized by every group for employment and daily earnings. Based on demand and mutual consent of group , samities invest in Vehicle , Tractors , Tube wells etc ..Bank gives subsidy of Rs 1.25 lacs on such loans and finance full amount .

Action : Train NGOs workers to meet such S.H.G /Samities and influence for Magic & Winger Sale to different societies .Its easy for NGOs workers to meet these S.H.G /V.L.W or samities , as they work full time in Rural Areas.

Working Plan : If any of the workers bring an enquiry and the documents of the customer in the rural areas, we will give incentive of Rs 500 immediately, and if the enquiry gets retailed, we give an additional Rs 1000 per vehicle. Thus a total of Rs 1500 per vehicle would be given to the worker who would lead the SCV P (Magic & Winger ) to sale.

Co Ordination Strategy:

Mithila Motors would appoint a person who is well versed with the rural marketing, who would look after the working with the NGO. Whenever there would be any inquiry from any worker, the appointed person would check if the enquiry is already available with the executives of Mithila Motors. If not the incentive would be passed down. This appointed person would act as a link between the NGO and the Mithila Motors and subsequently to TSM (Tata Motors).

Execution of the Plan

· Visit to NHRM office in Sakchi, jail chawk Jamshedpur.

· Discussion with the officials and explain them about our Tata Magic and the scheme.

· Prepare a database of all the blocks and the block officers though the officials in the NHRM.

· Taking the permission of the block officers to come to the weekly meeting held in the blocks.

· Explaining the ANM and the Sahiyyas about our SCV P (Magic) and the scheme and providing them with a small training about our SCV P and the way they could promote our vehicle.

There will be a regular meet with the ANM and Sahiyyas on their weekly meet to take regular feedback from them. The incentive would be given to the block officers or the appointed person from Mithila Motors to the respective people.

Initially Tata Motors is working this scheme with Mithila Motors in and around Jamshedpur. Slowly with the penetration in the rural market around Jamshedpur, this plan would be further executed in Bokaro and Dhanbad.

By this scheme TATA MOTORS is creating employment for the people in the rural areas. It is in a way serving its social responsibility.

It is also planning to work with the other NGOs who work in the rural areas with child education.

FLOW CHART OF THE WORKING PLAN

PROCESS OF RURAL PENENTRATION IN ASSOCIATION WIH NRHM

We have been visiting the Patamda block and Pokta block and have spoken to the block officer .This block has about 37 ANMs and 240 Sahiyyas working under them. A small meeting was held with the 50 ANMs in patamda and 60 ANMs in potka, and they were informed about our vehicle and were told about our incentive scheme. A demo about our SCV Tata Magic was given to them.

Meetings have been fixed with other block officials on their respective weekly meetings.

Block Officers Details
Serial no	Name of Block	Name of Block Officers	Contact No	No of ANM	No of Sahiyyas
1	Beheragora/Dalbanga	Dr. A.C.Jha	9431347084	63	300
2	Chakulia	Dr.Suresh Chandra Mahato	9431927562	52	250
3	Ghatsila	Dr. S.K.Majhi	9204353843	50	250
4	Musabani	Dr. B.Bhusan	9430245640	53	270
5	Patanda	Dr. Nazir Ahemad	9431965560	37	240
6	Potka	Dr. A.K.Lal	9431117620	53	283

V.L.W.(Village level Worker)
PATAMDA BLOCK
SL.NO.	NAME	PHONE NUMBER
1	MR.TARANI CHARAN DEY	9931114855
2	MR.MANIESH CHANDRA GORAI	9939356651
3	MR.PARIMAL GIRI	7739225926
SARAIKELA KHARSAWAN
SL.NO.	NAME	PHONE NUMBER
1	NARAYAN KUMAR	9470353601
2	PURSURAM MAHATO	9534082272
3	SAMAR URAON	9162166530
4	ASHIRWAD MAHATO	9931583725
5	SHIV KUMAR SAHOO	9835126515
6	GAORAHARI KUMBHAKAR	9431953170
7	RAJESH RAM	9861964635
8	FALGU MAHATO	9955314475
9	PORESH MANDAL	9934170063
10	SUKHLAL SAHOO	9934558124
11	DHARNI PARAMANIK	9939564070
12	CHAKRADHONI BISRI	9931121592
SARAIKELA KHARSAWAN
SL.NO.	NAME	PHONE NUMBER
1	HEMANT KUMAR MAHATO	9939318262
2	PARDUMUA KUMAR	9931117719
3	GORE HARI KEMBARKA	9470353601
4	NAREYEN KUMAR	9470353601
5	SUMAR CHANDRA RAO	9162166530
6	SHIV KUMAR SAHU	9835126515
7	PORSURAM MAHATO	9934165395
8	RAJESH RAM	9973418783

WORKS DONE WITH THE NGOs

There are further dates fixed with different NGOs where we would go and tell them about our plan.

We have also worked with other NGOs which are working in the urban areas, such as:

NAME OF NGOs	PLACE	CONTACT PERSON	CONTACT NUMBER
AMMA RESEARCH	SONARI	Mr.M.KRISHNA RAO	9334804766
VIKAS BHARATI	JAMSHEDPUR	Mr.Pankaj	9304804072
AROGYA NIKETAN	JEMCO SANGANI NURSING,SAKCHI	Mr. Rajeev	9431380196
YUVA	PASUDI	Mr. Arvind Tiwari	9430391884
SHARE	JAMSHEDPUR	Mr.Vinay	9431368237
PRAGATI	HATA	Mr. Pragati	9431542538
EKJUT	JAMSHEDPUR	Mr. Vijay	9430354786
DHRITI	BISTUPUR	Mr. Anirban Gupta	9810114559/9810114843

CHALLENGES

There are a lot of challenges that is being faced in the process and can be faced in the future.

· The interactive sessions with the ANMs and Sahiyyas are allowed before or after their official meeting.

· Most of the Block is in the rural areas which are very interior places. So it becomes difficult to reach those places.

· Language barrier with the rural population can be another challenge.

· Training the ANMs and Sahiyyas about our SCV –P (Magic ) is not a easy job. They may not understand the technicalities in the vehicle.

· Another major drawback is that ANM and Sahiyyas are interested only on commission sale. So once they start giving enquiries , proper incentive is credited to them.

· Many enquiries may not lead to sales. Thus it can be non profitable for the company to pay Rs 300 for every enquiry that may not lead to sales.

SUGGESTIONS

· More incentive to the village level workers would work better for the project.

· Participation in local events and sponsoring the village programmes and displaying the vehicle there could be a way to promote the vehicle and create brand awareness.

· Different pricing strategies could be used in the rural market. Special discounts could be given to customers as a promotional scheme.

· Lunch packets could be provided by the company in the meeting held with the NGO workers.

· Resident dealer sales executives could be appointed who resided in the rural areas itself. This would be advantageous as the local person would be able to convince potential customers in a better way.

· Small clippings can be shown about the vehicle in projectors and the operating profits could be shown visually which would be more effective.

ANNEXURE

Questionnaire

1. Stand Location-______________________.

2. Name- ____________________________________________.

3. Respondent- Owner driver

4. Age

a) 18-25 b) 26-33 c) 34-41 d) 42-49

e) 50-57

5. Model/Make-__________________________.

6. Route-____________________________.

7. How long you have been using our Vehicle?

a) 0-1 year b) 1-2 years

c) 2-3 years d) 3-4 years e) More than 4 years

Then please specify___________.

8) Distance (Km) travel per day

a) 0-50 km b) 50-100 km c) 100-150 km d) 150-200 km

e) More than 200

9) No. of trips per day- (a) 1 (b) 2 (c) 3 (d) 4

e) More than 4

10) Mileage of the vehicle (in km)

(a) 10-15 (b) 15-20 (c) 20-25 (d) 25-30

11) Is your vehicle Financed-?

a) Yes ,b) no

If yes then please specify the installment___________

12) Average Daily income- (a) below 300 (b) 300-500 (c) 500-700

If more than 700 then please specify ___________

13) Owners share_____________

14) Actual passenger capacity

a) 5 b) 6 c) 7 d) 8 e) more than 8

15) Steering type

a) Handle b) wheel

16) In term of design (style) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

17) In term of seating capacity (number of seats) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

18) In term of pick up (acceleration) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

19) In term of mileage (fuel efficient) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

20) In term of Comfortability to passengers (passenger) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

21) In term of Comfortability to driver (diving) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

22) In term of durability (durable) please rate your vehicle that you’re currently using.

Very good	Good	average	Poor	Extremely poor

23) In term of safety please rate your vehicle that you’re currently using

Very good	Good	average	Poor	Extremely poor

24). Do you have any idea about different small commercial vehicles of TATA?

a) Yes b). No

25) Would you like to buy Tata’s vehicle in place of other’s vehicle?

a) Yes b) no

26) Design of TATA’s small commercial vehicle is better than its competitors.

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

27) Seating capacity of TATA’s small commercial vehicle is better than its competitors

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

28) Speed of TATA’s small commercial vehicle is better than its competitors

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

29) Comfortability of TATA’s small commercial vehicle is better than its competitors.

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

30)Safety of TATA’s small commercial vehicle is better than its competitors.

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

31)Mileage of TATA’s small commercial vehicle is more than its competitors

Strongly agree	Agree	Don’t know	Disagree	Strongly disagree

25) If you have any other feedback on TATA’s small commercial vehicles please specify.sssss

ANNEXURE 2:-

1. Design of TATA Magic is good than its competitors.