Professional Documents
Culture Documents
OF PLANNING &
MANAGEMENT
Satbari, New Delhi
ANKIT BHARDWAJ
PGP-FW-2008/10
INTERNAL GUIDE-PROF.DIPTI SHARMA
EXTERNAL GUIDE-MR. P.MUTHUPANDI
TOPIC REGISTRATION ID No.- DF/08/10-M-396
ALUMNI ID NO. - DF/08/10-M-396
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Abstract
The rapid pace of change and intense competitive pressure in today's
marketplace demand that brands continuously innovate and reinvent themselves
to maintain their relevance and market position. In this context, brand
repositioning and other revitalization strategies have become a business
imperative for battling brand erosion. The appeal of brand repositioning is further
heightened by the rising costs and high risk associated with launching a new
brand.
Repositioning can be required as the market changes and new opportunities
occur. Through repositioning the company can reach customers they not
intended to reach in the first place. If a brand has been established at the market
for some time and wish to change their image they can consider repositioning,
although one of the hardest actions in marketing is to reposition a familiar brand.
The strategic importance of brand repositioning in preserving and enhancing
brand equity, coupled with the mixed results of repositioning attempts,
underscores the need to develop a better understanding of the dynamics of
brand repositioning. Specifically, questions of whether, when and how brands
should be repositioned need to be addressed. Research into brand repositioning
is relevant not only to the development of brand management theory, but also
extends to corporate strategy through an examination of corporate brands.
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the
data.
SECONDARY:
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in
nature because study is focused on fact investigation in a well-structured from
and is based on primary data.
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RESEARCH PLAN
Type of study: For completing my study I have gone for sample study
because looking at the size of population & the time limitation it was not
convenient for me to cover entire population. Hence, I have gone for
sample study rather than census study.
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Certificate of Originality
This is to certify that the Management Thesis titled Repositioning Strategy of
Tata Motors and its acceptance level in customer submitted during Semester
(VI) of the MBA Program (The Class of 2010) embodies original work done by
me.
Name:
ANKIT BHARDWAJ
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External Guide
P.Muthupandi
SANYA MOTORS
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Regards,
Prof .Sumanta Sharma
Dean (Projects)
IIPM
Sumanta.sharma@iipm.edu
Phone:
+91 0124 3350701 (D)
+91 0124 3350715 (Board)
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Table of Contents
Contents
Page No.
1. Abstract
2. Certificate of Originality
3. Completion letter from external guide
4. Thesis topic approval letter sent over e-mail
5. Thesis synopsis
6. Acknowledgements
7. Literature review
8. Primary findings & analysis
9. Findings
10. Suggestions
11. Conclusions
12. List of figures
13. Bibliography
14. Questionnaire
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THESIS SYNOPSIS
DETAILS OF THE STUDENT
NAME:
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION: FINANCE
CONTACT NO:
9718086128
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its
products.
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Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the
data.
SECONDARY:
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in
nature because study is focused on fact investigation in a well-structured from
and is based on primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study
because looking at the size of population & the time limitation it was not
convenient for me to cover entire population. Hence, I have gone for
sample study rather than census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA
among its customers. Also, after the launch of NANO I wanted to know what
were the changes that TATA was able to bring in the society?
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ACKNOWLEDGEMENTS
Any accomplishment requires the effort of many people and this work is not
different. I am thankful to my faculty supervisor Prof. Dipti Sharma for
supporting me and guiding me throughout the project. This report would not have
been possible without her help. I would also like to express my gratitude towards
Mr.P. Muthupandi, SANYA MOTORS, New Delhi for his cooperation and giving
his valuable time and information for my thesis preparation.
Finally, I am thankful to my family members and my friends who provided me
with all the help I needed.
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1.
COMPANY PROFILE
Tata Motors Limited is India's largest automobile company, with consolidated
revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. It is the leader in
commercial vehicles in each segment, and among the top three in passenger
vehicles with winning products in the compact, midsize car and utility vehicle
segments. The company is the world's fourth largest truck manufacturer, and the
world's second largest bus manufacturer.
The company's 24,000 employees are guided by the vision to be "best in the
manner in which we operate, best in the products we deliver, and best in our
value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the first
rolled out in 1954. The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic
alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group
Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars
and Fiat powertrains. The company is establishing a new plant at Sanand
(Gujarat). The company's dealership, sales, services and spare parts network
comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the
New York Stock Exchange (September 2004), has also emerged as an
international automobile company. Through subsidiaries and associate
companies, Tata Motors has operations in the UK, South Korea, Thailand and
Spain. Among them is Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008. In 2004, it acquired the Daewoo
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With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.
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Milestones
1945: Tata Engineering and Locomotive Co. Ltd. was established to manufacture
locomotives and other engineering products.
1948: Steam road roller introduced in collaboration with Marshall Sons (UK).
1954: Collaboration with Daimler Benz AG, West Germany, for manufacture of
medium commercial vehicles. The first vehicle rolled out within 6 months of the
contract.
1959: Research and Development Centre set up at Jamshedpur.
1961: Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966: Setting up of the Engineering Research Centre at Pune to provide impetus
to automobile Research and Development.
1977: First commercial vehicle manufactured in Pune.
1983: Manufacture of Heavy Commercial Vehicle commences.
1986: Production of first light commercial vehicle, Tata 407, indigenously
designed, followed by Tata 608.
1991:
1994:
Joint venture agreement signed with M/s Daimler - Benz / Mercedes Benz for manufacture of Mercedes Benz passenger cars in India.
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1997:
1998:
2000:
Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
2001:
2002:
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2003:
2004:
Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement
Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy
duty truck 'NOVUS' , in Korea
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2005:
Tata Motors rolls out the 500,000th Passenger Car from its Car Plant
Facility in Pune
The Tata Xover unveiled at the 75th Geneva Motor Show
Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company
2006:
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Tata Motors first plant for small car to come up in West Bengal
Tata Motors extends CNG options on its hatchback and estate range
2007:
Tata Motors launches the longwheel base Indigo XL, India's first stretch
limousine
Common rail diesel (DICOR) engine extended to Indigo sedan and estate
range
Launch of a new Upgraded range of its entry level utility vehicle offering,
the Tata Spacio.
Launch of the Sumo Victa Turbo DI, the new upgraded range of its entrylevel utility vehicle, the Sumo Spacio
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Tata Motors launches Indica V2 Turbo with dual airbags and ABS
Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L
Direct Injection Common Rail (DICOR) engine.
Rollout of the one millionth passenger car off the Indica platform.
2008:
Launch of the new Sumo -- Sumo Grande, which combines the looks of an
SUV with the comforts of a family car.
Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III
Commonwealth Youth Games Pune 2008.
Tata Motors launches passenger cars and the new pick-up in D.R. Congo.
2009:
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Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land
Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and
Land Rover in India
Tata Nano wins the Indian Car of the Year (ICOTY) Award
Tata Motors introduces the all new Tata 407 Pickup, Tata Super Ace and
Tata Ace EX.
2010:
Tata Ace becomes India's first 1-lakh brand in goods commercial vehicles.
Appointment of Mr. Carl-Peter Forster as Managing Director of Tata
Motors.
Tata Motors Passenger Car Division launches Tata Motors Service Edge
for leading edge customer service.
Tata Motors displays Tata Nano EV at the 80th Geneva Motor Show.
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On 26th April 2010, Tata Motors sold its 4 millionth Commercial Vehicle.
Concept vehicles
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Commercial vehicles
Tata Ace
Military vehicles:
Tata LSV (Light Specialist Vehicle)
Tata 2 Stretcher Ambulance
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Tata 407 Troop Carrier, available in hard top, soft top,4x4, and 4x2
versions
Tata LPTA 713 TC (4x4)
Tata LPT 709 E
Tata SD 1015 TC (4x4)
Tata LPTA 1615 TC (4x4)
Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 T
Tata Motors total sales (including exports) of Tata commercial and passenger
vehicles in July 2010 were 67,799 vehicles, a growth of 41% over 48,054
vehicles sold in July 2009. The companys domestic sales of Tata commercial
and passenger vehicles for July 2010 were 63,558 nos., a 39% growth over
45,599 nos. sold in July last year.
Cumulative sales (including exports) for the company for the fiscal are 249,507
nos., a growth of 46% over 171,168 nos. sold last year.
Commercial Vehicles
The companys sales of commercial vehicles in July 2010 in the domestic market
were 35,694 nos., a 26% growth compared to 28,408 vehicles sold in July last
year. LCV sales were 20,438 nos., a growth of 15% over July last year. M&HCV
sales stood at 15,256 nos., a growth of 43% over July last year.
Cumulative sales of commercial vehicles in the domestic market for the fiscal are
132,923 nos., a growth of 32% over last year. Cumulative LCV sales are 75,511
nos., a growth of 20% over last year, while M&HCV sales stood at 57,412 nos., a
growth of 54% over last year.
Passenger Vehicles
The passenger vehicles business reported a total sale and distribution offtake of
30,165 nos. (27,864 Tata + 2,301 Fiat) in the domestic market in July 2010, a
52% increase compared to 19,881 nos. (17,191 Tata + 2,690 Fiat) in July last
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year. Sales of Tata passenger vehicles at 27,864 nos. is the highest ever for the
company and a growth of 62% over July 2009. Sales of the Tata Nano were
9000 nos. The Indica range sales were 8,606 nos., higher by 1% over July last
year. The Indigo range recorded sales of 7,007 nos., a growth of 100% over July
last year. The Sumo/Safari range accounted for sales of 3,251 nos., higher by
22% over July last year.
Jaguar Land Rover sales continued their upward trend since launch in July 2009.
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TATA PRODUCTS
2.
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Market Potential
De-licensing in 1991 put the Indian automobile industry on a new growth
trajectory, which attracted foreign auto giants to set up their production facilities
in the country to take advantage of various benefits it offers. Large middle class
population, growing earning power and strong technological capability have been
boosting automobile demand for past few years. Despite economic slowdown,
the Indian automobile sector is expected to see high growth in coming years,
especially in passenger cars segment. The passenger vehicle market, which
constitutes around 80% of automobile sales, has immense growth potential as
passenger car stock stood at around 11 per 1,000 people in 2008. Anticipating
the future market potential, the production of passenger vehicle is forecasted to
grow at a CAGR of around 11% from 2009-10 to 2012-13. The recent launch of
Tata Nano has brought about a new revolution in the countrys small car
segment. Seeing the good initial response from consumers, many other players
in the industry are chalking out their plans to launch cars in this segment in the
next few years. Our research foresees a CAGR growth of around 12% in
domestic volume sales of passenger vehicles during the forecast period. Other
segments, such as two-wheelers, multi-purpose vehicle and light commercial
vehicle, are also expected to witness fast growth in coming years.
In the financial year 2010, Automobile Industry of India is expected to witness a
10 to 12% of massive growth in its vehicles sales. As per a research conducted
by Indian Auto Sector Outlook, rivalry in the nation's Automobile sector is
anticipated to grow due to escalating influx of international original equipment
manufacturers (OEM).
According to the National Council for Applied Economic Research, or NCAER,
rural India accounts for 70% of Indias population, 56% of the national income,
64% of the total expenditure and one-third of the total savings. So, the difficulties
faced in cracking these markets pale before the huge potential they offer a
company. Of the total sales (of consumer goods), around 55% come from rural
India, and going ahead, the contribution is likely to grow. NCAER data suggests
that in real terms, at 1999 prices, the size of the rural economy will be about
Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of nonfarm income will be about two-thirds of the rural economy by 2012-13.
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Noticing this huge potential Tata motors now plans to tap the rural market, 60 per
cent of which runs on cash. Tata motors ltd. is working on strategies to make
inroads into these markets.
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3.
BARRIERS TO ENTRY
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Time and cost of entry Time is most essential thing while launching a product
in any market. The launch of the NANO is quite viable as the demand of the
small car is on the rise in the market. By the cost of the entry we mean the initial
capital required to set up a new firm is very high, it makes the chances of the
chances of new entrants are very less.
Knowledge and Technology - Ideas and Knowledge that provides competitive
advantage over others when patented, preventing others from using it and thus
creates barrier to entry. The TATA motors have great knowledge/ experience in
the automobile industry and has renowned technological advantage because of
the recent acquisition and mergers.
Product Differentiation and Cost Advantage The new product has to be
different and attractive to be accepted by the customers. Attractiveness can be
measured in the terms of the features, price etc. At this level the price of the
NANO car was one thing that is attracting customers. And above all this the
image, trust the name TATA carries with it.
Government Policy and Expected Retaliation - Although government's job is
to preserve free competitive market, it restricts competition through regulations
and restrictions. The government tried to promote the TATA Motors to start a
plant by providing land and tax rebates. But the unexpected retaliation by the
local people surface in the setting up of the plant which cost the company a lot.
Access to Distribution Channels When a new product a launched a well
developed distribution is must for its success. The TATA motors had an
advantage of well established distribution channel across the world.
BUYERS
Switching Costs - If switching to another product is simple and cheap the
customers does not think much before doing it. In case of NANO car the
switching cost from bike to car is too high. Thus increasing the demand of the car
many fold.
Number of customers/ Volume of sales - If there are few buyers then they are
able to dictate the terms. They pull down the cost by Bargaining. The bargaining
power of buyer is high as there is lot of choice available to the buyer and the
service does not vary from one manufacturer to the other. They force the
manufactures to improve the quality. All this can be clearly seen in the case of
NANO car the price tag at which it has been offered or the quality of the NANO
car no compromises have been done at any front.
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Brand Image - The brand image of the TATA and the segment in which the
NANO has been the most attractive thing in the entire package.
SUPPLIERS
Number and Size of Suppliers A company to manufacture its products
requires raw material, labor etc. If there are few suppliers providing material
essential to make a product then they can set the price high to capture more
profit. Powerful suppliers can squeeze industry profitability to great extend. In
case of NANO the supplier are limited and the size of the suppliers are big
enough to bring about the controlling power in the price of the car. The NANO car
has more than 128 suppliers in all and the major portion of the building cost of
the car is the parts supplied by the suppliers.
Unique Service / Product - Suppliers products have few substitutes. Supplier
industry is dominated by a few firms. The some parts of the NANO car are obtain
from the supplier who them are big enough and limited substitutes are available
against them. So the entire production line depends upon them only.
Ability to substitute - Suppliers products have high switching costs. In many case
even when substitute are available its not that easy to opt for substitute as the
next product in the assembly line depends upon it. If the change in the any part is
brought about the long list of depended parts also have to be changed, which in
most cases is not feasible to do.
SUBSTITUTES
Price band - The threat that consumer will switch to a substitute product if there
has been an increase in price of the product or there has been a decrease in
price of the substitute product. If the price of the NANO car will increase the main
expected customers i.e. the one switching from bike to car will not move to car
and will remain in the bike only. Thus the price is kept checked in this manner.
Substitutes performance - The performance of the substitute sector will also
play a important role in the success of the NANO car. If the price of the Bike
segments increases or the price band of the small segment fall, it will have effect
on the quantity required in the market. Its just on the price but also the features
and the other services associated or it may be the status symbol story. The
success of the electric car segment with player like REVA can also affect the
demand of the NANO.
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SWOT ANALYSIS
STRENGTH:
Strong Presence in the Marketplace:-Tata Motors is the only company in
India with a broad based presence across the industry, in all segments of
the commercial vehicles market heavy and medium commercial
vehicles, light commercial vehicles, pick-ups, sub one-tonne mini-trucks and key segments - compact, midsize car and utility vehicle segments - of
the passenger vehicles market.
Skill Base Developed over the Last 40 Years:-Tata Motors is also very
well-placed on technology capability. The company had set up its
Engineering Research Centre as early as 1966.With 1400 scientists and
engineers and state-of-the-art development, testing and validation
facilities, it is this technology capability which has, allowed Tata Motors,
over the decades, to offer indigenously developed products. This strength
has been accentuated, with the inclusion of TMETC, TDCV and Hispano
Carrocera in the R&D network, besides several other specialist external
agencies. The company no longer needs to develop every necessity itself.
Today it just has to manage the process of product creation, drawing upon
already available R&D and skills from different sources.
People Strength: - The Companys key strength is its people. The over
22,000 employees comprise a very broad talent base, with the required
skills in every aspect of the industry. With increasing international
initiatives by the company, this talent base is now getting enriched with the
necessary competencies to respond to meet world-class standards of
quality and cost. The company will achieve this by developing and
marketing relevant products, on its existing platforms and new ones, which
delight consumers in every market they are introduced in.
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WEAKNESS:
The current financial situation of its recently acquired firms like Corus
and Land Rover-Jaguar is very big headache for the company and it
should be back to the track in the near future.
The high ratio of debt equity ratio is also weakness of the company.
The small car segment is still not good for the company due to marutisuzuki so, it need to tap this section also.
The company's passenger car products are based upon 3rd and 4th
generation platforms, which put Tata Motors Limited at a disadvantage
with competing car manufacturers.
Despite buying the Jaguar and Land Rover brands (see opportunities
below); Tat has not got a foothold in the luxury car segment in its
domestic, Indian market. Is the brand associated with commercial vehicles
and low-cost passenger cars to the extent that it has isolated itself from
lucrative segments in a more aspiring India?
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One weakness which is often not recognized is that in English the word
'tat' means rubbish. Would the brand sensitive British consumer ever buy
into such a brand? Maybe not, but they would buy into Fiat, Jaguar and
Land Rover.
OPPURTUNITIES:
Indias huge geographic spread-This is one aspect where the company is
looking for and its diversified range of cars suits very much this area of car
or say auto industry in country.
Easier finance schemes- The current fiscal stimulus and easy loan will
surely guide the company to post good sales as the current trend shows
the cars sales has been boosted by easy loan norms in the country.
Higher GDP growth-With standing tall during the slowdown our economy
has shown the industry that demands will gain momentum in near future
very soon.
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THREATS:
Indian is lacking in proper infrastructure this is slowing the pace of growth
of auto industry
Global crisis- this really hurts the Indian growing industry and not only the
auto but tyre industry went for toss.
High competition from foreign players-As the giants like GM, Audi, MERC
etc are trying to capture the high segment market it is one of the very
effective threat to the company.
Sustainability and environmentalism could mean extra costs for this lowcost producer. This could impact its underpinning competitive advantage.
Obviously, as Tata globalizes and buys into other brands this problem
could be alleviated.
Since the company has focused upon the commercial and small vehicle
segments, it has left itself open to competition from overseas companies
for the emerging Indian luxury segments. For example ICICI bank and
DaimlerChrysler have invested in a new Pune based plant which will build
5000 new Mercedes-Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford, Honda and Toyota. In fact
the entire Indian market has become a target for other global competitors
including Mahindra and Mahindra, Maruti Udyog, General Motors, Ford
and others.
Rising prices in the global economy could pose a threat to Tata Motors
Limited on a couple of fronts. The price of steel and aluminium is
increasing putting pressure on the costs of production. Many of Tata's
products run on Diesel fuel which is becoming expensive globally and
within its traditional home market.
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Place
Place of dealership does play an important role. The channel of distribution,
physical location, and dealership method of distribution and sales is generally
adopted. The distribution of vehicle must be in a very systematic way, from the
plant to dealership and to end user. This is not only in India itself but also to the
world-wide dealership.
Maintenance and Support
After sales service is also another important marketing strategy for most of the
car buyer to choose for the right car. End user will not want to spend a lot of time
to travel to a far place just to service the car such as change engine oil, oil filter
and some simple checking. Parts and accessories must also easy to access
when it is needed to keep the customer satisfy from buying Tata cars until
maintaining the car or even until they sell the car and change to a newer Tata
model.
Launch of Tata Nano
TATA unveiled its long awaited 1 Lakh rupee car (actually a little over 1 lakh after
tax) for the masses and they call it The Peoples Car. Its a sweet looking small
car, just enough to take four people around the city. 1 Lakh rupees roughly
translate to 2500 rupees monthly installment and because of this reason TATA is
expect to sell record breaking numbers and leave Indian roads blocked.
TATA Nano is a definite threat to Maruti 800. TATA stated that the initial
production of this car will be of 250,000 a year. After about four years of hard
efforts TATA Nano (1 lakh rupee car) was on road now.
The introduction of the Nano received media attention due to its targeted low
price. The car is expected to boost the Indian economy, create entrepreneurialopportunities across India, as well as expand the Indian car market by 65%. The
car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors,
who has described it as an eco-friendly "people's car". Nano has been greatly
appreciated by many sources and the media for its low-cost and eco-friendly
initiatives which include using compressed-air as fuel and an electric-version (ENano). Tata Group is expected to mass manufacture the Nano, particularly the
electric-version, and, besides selling them in India, to also export them
worldwide.
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The Nano's trunk does not open. Instead, the rear seats can be folded
down to access the trunk space.
It has a single windscreen wiper instead of the usual pair.
It has no power steering.
Its door opening lever was simplified.
It has three nuts on the wheels instead of the customary four.
It only has one side view mirror.
PRICE
Tata initially targeted the vehicle as "the least expensive production car in the
world" aiming for a starting price of 100,000 rupees or approximately, despite
rapidly rising material prices at the time.
As of August 2009, material costs had risen from 19% to 29% over the cars
development, and Tata faced the choice of:
Introducing the car with an artificially low price through government subsidies
and tax breaks forgoing profit on the car
Using vertical-integration to artificially boost profits on cars at the expense of
their materials industries
Partially using inexpensive polymers or biodegradable plastics instead of a full
metal body raising the price of the car.
Some marketing strategies especially for TATA NANO
1. To make the car more easily accessible to people, the Tata Motors team
will sell the Nano not just through Tata car dealerships across the country,
but also through conventional retail outlets like Westside and Croma.
Westside is a lifestyle retail brand and Croma is an electronic megastore.
Both are owned by the Tata group. Westside and Croma outlets will
display the Nano and also take bookings. Also available will be a whole
range of Nano merchandise like baseball caps, T-shirts and key chains,
among others.
2. Carrying forward its vendor partnership production strategy, Tata Motors
will share promotion of the Nano brand with its multiple PSU bank
partners. These PSU financiers will promote the Nano brand during
booking jointly with Tata Motors and on their own.
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Magazines
Books
Newspaper
RESEARCH DESIGN:
Research Design is the arrangement for conditioned for data collection &
analysis of data in a manner that aims to combined relevance to research
purpose with economy in procedure.
A research design is a master plan or model for the conduct of formal
investigation. It is blue print that is followed in completing study.
The research conducted by me is a descriptive research. This is descriptive in
nature because study is focused on fact investigation in a well-structured from
and is based on primary data.
RESEARCH PLAN
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Type of study: For completing my study I have gone for sample study
because looking at the size of population & the time limitation it was not
convenient for me to cover entire population. Hence, I have gone for sample
study rather than census study.
SAMPLING PLAN:
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure that researcher would adopt in
selecting items to be inched in the sample i.e. the size of sample. Sampling plan
is determined before data are collected.
STEPS IN SAMPLING PLAN:
SAMPLING FRAME:
The list of sampling units from which sample is taken is called sampling frame.
Rourkela City map was studied thoroughly and samples were selected from the
place in a scattered manner to get effective result.
SAMPLING SIZE:
Total sample size is 100
SAMPLING PROCEDURE:
The selection of respondents were accordingly to be in a right place at a right
time and so the sampling were quite easy to measure, evaluate and cooperative. It was a randomly area sampling method that attempts to obtain the
sample of convenient.
ANALYSIS:
The important factors and datas collected were sequentially analyzed and
graphed.
FIELD WORK:
I have collected the data through medium called questionnaire collecting the
responses from 100 people in all.
I started my project very first educating the respondents about my entire project,
and ask them to cooperate with me. Mostly all the respondent were aware of
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this type of surveys. So I didnt face any type of difficulty during my project in the
process of explaining and taking their responses on the questionnaire.
4.
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The respondents were also asked to give overall rating to Tata`s exclusive showrooms.
It was found that out of total 100 respondents, 70 rated as good while the remaining
considered the showrooms to be excellent.
Around 70% of the respondents rated all the variables related to Tata`s exclusive
showrooms as good. This shows that the store ambience, sales personnel, after sales
service and display of cars in the showrooms play a major role in determining the
customer perception about brand.
Q.3
Car customers
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Q.4
Q.5
Which is the most essential thing you prefer while buying vehicle?
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In the survey it was found that People gave highest preference to Mileage (30%)
factor while buying a car and then to Price (25%) of the car. People also consult
with their friends and family members (20%) while buying a car.
Q.6
TV Ad
No
25%
Yes
75%
Q.7
TV Programmes
No
40%
Yes
60%
It was found out that only 60% people watched programmes related to cars like
RAFTAAR on NDTV.
Q.8
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Around 74% people believed in the brand value effect while some 26% people
said that they would buy a good car even if it is not a branded one.
Q.9
Q.10 How would you rate TATA Motors on the following parameter?
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72% people agreed that the sales persons spent enough time with them before
the sales and 28% strongly agreed with this.
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Disagree
8%
Strongly Disagree
0%
Agree
80%
80% agreed that the availability of the product was there, 12% strongly agreed
that the availability was there while only 8% said they disagreed with this.
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54% agreed that the discounts offered are attractive, 34% strongly agreed with
this while12% disagreed and said that the discounts offered were not attractive.
65%agreed that the test drive was offered to them, 10% strongly agreed that the
test drive was offered while 25% disagreed with this.
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Most of the people i.e.45% recalled Nano, 26$ Indica, 15% Safari,10% Sumo
and only 4% Indigo.
Q.12 What are your reasons for brand preference?
Good quality
26%
Design
42%
Brand image
15%
Price
17%
42% replied they prefer brand due to design while 17% price, 15% brand image
and 26% quality.
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Q.13 On what major advertisement mediums have you noticed TATA motors
advertisements?
Newspapers
32%
TV
41%
Magazines
23%
Bad
0%
Good
20%
Very good
80%
80% said that there overall opinion about TATA was that it is very good while
20% said that it is good.
Q.15 How likely would you recommend Tata Motors?
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90% people said they would very likely recommend TATA to other people and
10% said they would likely recommend TATA to others.
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FINDINGS
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SUGGESTIONS
Based on the findings from the analysis the following suggestions could be
made:
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CONCLUSION
The study was conducted to measure, Repositioning Strategy of Tata Motors
and its acceptance level in customer. The study was conducted on 100
Customers. A questionnaire was designed to understand the Repositioning
Strategy of Tata Motors and its acceptance level in customer in Delhi. Based on
the questionnaire, data was collected and analyzed and it was found that the
customers are willing to buy the Cars. However they are also skeptic about it.
Findings are provided based on customer and market situation. An earnest
attempt has been made to make the study realistic and suggestive, but it is not
claimed that the findings and suggestions in the report are perfect.
The suggestions to improve consumer awareness about brand repositioning
strategy of Tata Motors are as follows:
To increase its visibility so that different segments of the customer will
notice the products of Tata motors in varied ways.
Invest more in R&D as customer expectations are changing rapidly.
Make use of internet to spread awareness among consumers about the
brand.
Brand Appeal and Endorsement
Performance Characteristics
Quality
The two ways firms compete are by either a differentiation strategy or a low cost
strategy. However, as we've seen the route TML has taken involves competing
on both strategies. While the Nano targets the price conscious common man, the
Jaguar Land Rover deal shows us that TML is now targeting brand conscious,
high-end consumers. TML needs to have a similar differentiated strategies
focusing separately on these brands.
TMLs vision is to be best in the manner in which we operate best in the
products we deliver and best in our value systems and ethics. TML has come to
be known as an innovator in the passenger car segment not just in
manufacturing but along multiple areas along the value chain. The Tata Indica
and Tata Nano are prime examples of the companys innovation capabilities and
bear testimony to the strength of the companys R&D efforts. This innovation
fuelled growth coupled with strategic acquisitions is expected to catapult the
company to a preeminent position internationally.
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List of figures
1.
2.
3.
4.
TATA Logo
TATA products
Porters Five forces
Figures used in Primary findings & analysis
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Bibliography
INTERNET
www.tata.com
www.tatamotors.com
http://en.wikipedia.org/wiki/Tata_motors
http://en.wikipedia.org/wiki/Tata_group
http://en.wikipedia.org/wiki/Indian_automobile_industry
http://www.carwale.com/research/cars/tata
http://www.tatamotors.com/our_world/press_releases.php?
ID=458&action=Pull
http://www.tatamotors.com/our_world/press_releases.php?
ID=500&action=Pull
www.scribd.com
www.thehindubusinessline.com
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QUESTIONNAIRE
Q.1
Q.2
Q.3
o
o
Q.4
o
o
Satisfied
Not satisfied
Q.5
Which is the most essential thing you prefer while buying vehicle?
Price
Mileage
Brand Name
Family & Friends
Others
Q.6
o
o
Q.7
o
o
Q.8
Yes
No
Do you like TV programs on car?
Yes
No
Does brand value affect your decision on buying vehicle?
Yes
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o
Q.9
o
o
o
o
o
No
How long have you been associated with Tata Motors?
1 year
1-3 years
3-5 years
5-10 years
10 years
Q.10 How would you rate TATA Motors on the following parameter?
Strongly Disagree Agree Strongl
disagree
y agree
Knowledgeable
a)
b)
c)
d)
salesperson
Employees
spent enough
time
with you:
before sales
During sales
After sales
Availability
of
the product
Prices
are
affordable
e)
Attractive
discounts
offered
f)
Offered a test
drive
g)
Responds
complaints
quickly
h)
Careful
with
personal
information
i)
All
the
commitments
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to
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are fulfilled
Q.11
Q.12
Q.13 On what major advertisement mediums have you noticed TATA motors
advertisements?
TV
Magazines
Newspapers
Radio
Q.14 What is your overall opinion about Tata Motors?
Very Bad
1
Bad
2
Good
Very Good
4
5
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Very Likely
5
DF/08/10-M-396
Thesis Topic:Repositioning Strategy of Tata Motors and its acceptance level in customer
Date: 10-08-2010
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION:
FINANCE
CONTACT NO:
9718086128
PGP-FW-2008/10
DF/08/10-M-396
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its products.
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
PGP-FW-2008/10
DF/08/10-M-396
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based on
primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me
to cover entire population. Hence, I have gone for sample study rather than
census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA among its
customers. Also, after the launch of NANO I wanted to know what were the changes that
TATA was able to bring in the society?
PGP-FW-2008/10
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I will start my thesis with the following points in the literature review:1. Automobile industry in India
2. Company profile
3. Milestones of the company
PGP-FW-2008/10
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______________________________________________________________________
__
______________________________________________________________________
__
Note: -Whenever a student emails his/her response sheet, he/she has to send all the previous
response sheets too. Response sheets should be emailed to the concerned internal guide.
Signature of the guide is not mandatory if the student sends the response sheets through email.
Note:- Students must always use the thesis title as approved and sent to them by email
PGP-FW-2008/10
DF/08/10-M-396
Thesis Topic:Repositioning Strategy of Tata Motors and its acceptance level in customer
Date: 10-08-2010
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION:
FINANCE
CONTACT NO:
9718086128
PGP-FW-2008/10
DF/08/10-M-396
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its products.
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
PGP-FW-2008/10
DF/08/10-M-396
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based on
primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me
to cover entire population. Hence, I have gone for sample study rather than
census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA among its
customers. Also, after the launch of NANO I wanted to know what were the changes that
TATA was able to bring in the society?
PGP-FW-2008/10
DF/08/10-M-396
Market Potential
De-licensing in 1991 put the Indian automobile industry on a new growth trajectory,
which attracted foreign auto giants to set up their production facilities in the country to
take advantage of various benefits it offers. Large middle class population, growing
earning power and strong technological capability have been boosting automobile
demand for past few years. Despite economic slowdown, the Indian automobile sector is
expected to see high growth in coming years, especially in passenger cars segment.
The passenger vehicle market, which constitutes around 80% of automobile sales, has
immense growth potential as passenger car stock stood at around 11 per 1,000 people
in 2008. Anticipating the future market potential, the production of passenger vehicle is
forecasted to grow at a CAGR of around 11% from 2009-10 to 2012-13. The recent
launch of Tata Nano has brought about a new revolution in the countrys small car
segment. Seeing the good initial response from consumers, many other players in the
industry are chalking out their plans to launch cars in this segment in the next few years.
Our research foresees a CAGR growth of around 12% in domestic volume sales of
passenger vehicles during the forecast period. Other segments, such as two-wheelers,
multi-purpose vehicle and light commercial vehicle, are also expected to witness fast
growth in coming years.
In the financial year 2010, Automobile Industry of India is expected to witness a 10 to
12% of massive growth in its vehicles sales. As per a research conducted by Indian Auto
Sector Outlook, rivalry in the nation's Automobile sector is anticipated to grow due to
escalating influx of international original equipment manufacturers (OEM).
According to the National Council for Applied Economic Research, or NCAER, rural
India accounts for 70% of Indias population, 56% of the national income, 64% of the
total expenditure and one-third of the total savings. So, the difficulties faced in cracking
these markets pale before the huge potential they offer a company. Of the total sales (of
consumer goods), around 55% come from rural India, and going ahead, the contribution
is likely to grow. NCAER data suggests that in real terms, at 1999 prices, the size of the
rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 200708. The share of non-farm income will be about two-thirds of the rural economy by 201213.
Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of
which runs on cash. Tata motors ltd. is working on strategies to make inroads into these
markets.
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3.
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______________________________________________________________________
__
______________________________________________________________________
__
Note: -Whenever a student emails his/her response sheet, he/she has to send all the previous
response sheets too. Response sheets should be emailed to the concerned internal guide.
Signature of the guide is not mandatory if the student sends the response sheets through email.
Note:- Students must always use the thesis title as approved and sent to them by email
PGP-FW-2008/10
DF/08/10-M-396
Thesis Topic:Repositioning Strategy of Tata Motors and its acceptance level in customer
Date: 10-08-2010
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION:
FINANCE
CONTACT NO:
9718086128
PGP-FW-2008/10
DF/08/10-M-396
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its products.
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
PGP-FW-2008/10
DF/08/10-M-396
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based on
primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me
to cover entire population. Hence, I have gone for sample study rather than
census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA among its
customers. Also, after the launch of NANO I wanted to know what were the changes that
TATA was able to bring in the society?
PGP-FW-2008/10
DF/08/10-M-396
Then, after Porter five forces analysis, I will cover SWOT ANALYSIS OF TATA
MOTORS.
STRENGTH:
WEAKNESS:
The current financial situation of its recently acquired firms like Corus
and Land Rover-Jaguar is very big headache for the company and it
should be back to the track in the near future.
The high ratio of debt equity ratio is also weakness of the company.
The small car segment is still not good for the company due to marutisuzuki so, it need to tap this section also.
OPPURTUNITIES:
THREATS:
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Global crisis- this really hurts the Indian growing industry and not only the
auto but tyre industry went for toss.
High competition from foreign players-As the giants like GM, Audi, MERC
etc are trying to capture the high segment market it is one of the very
effective threat to the company.
______________________________________________________________________
__
______________________________________________________________________
__
PGP-FW-2008/10
DF/08/10-M-396
Note: -Whenever a student emails his/her response sheet, he/she has to send all the previous
response sheets too. Response sheets should be emailed to the concerned internal guide.
Signature of the guide is not mandatory if the student sends the response sheets through email.
Note:- Students must always use the thesis title as approved and sent to them by email
PGP-FW-2008/10
DF/08/10-M-396
Thesis Topic:Repositioning Strategy of Tata Motors and its acceptance level in customer
Date: 10-08-2010
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION:
FINANCE
CONTACT NO:
9718086128
PGP-FW-2008/10
DF/08/10-M-396
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its products.
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
PGP-FW-2008/10
DF/08/10-M-396
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based on
primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me
to cover entire population. Hence, I have gone for sample study rather than
census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA among its
customers. Also, after the launch of NANO I wanted to know what were the changes that
TATA was able to bring in the society?
PGP-FW-2008/10
DF/08/10-M-396
______________________________________________________________________
__
______________________________________________________________________
__
PGP-FW-2008/10
DF/08/10-M-396
Note: -Whenever a student emails his/her response sheet, he/she has to send all the previous
response sheets too. Response sheets should be emailed to the concerned internal guide.
Signature of the guide is not mandatory if the student sends the response sheets through email.
Note:- Students must always use the thesis title as approved and sent to them by email
Thesis Topic:Repositioning Strategy of Tata Motors and its acceptance level in customer
Date: 10-08-2010
PGP-FW-2008/10
DF/08/10-M-396
ANKIT BHARDWAJ
BATCH:
FW-2008/10
SECTION:
F4
SPECIALIZATION:
FINANCE
CONTACT NO:
9718086128
DESIRED AREA:
MARKETING
EMAIL ID:
ankitisworking@yahoo.com
Thesis Title
Repositioning Strategy of Tata Motors and its
acceptance level in customer
Research objectives
To know what people perceive and thinking about Tata Motors and its products.
PGP-FW-2008/10
DF/08/10-M-396
Research methodology
PRIMARY:
For my survey primary data have been used as a questionnaire to collect the data.
SECONDARY:
The secondary data has been collected from the following modes:
Magazines
Books
Newspaper
Data through internet sources
The research conducted by me is a descriptive research. This is descriptive in nature
because study is focused on fact investigation in a well-structured from and is based on
primary data.
RESEARCH PLAN
Type of study: For completing my study I have gone for sample study because
looking at the size of population & the time limitation it was not convenient for me
to cover entire population. Hence, I have gone for sample study rather than
census study.
Justification
I wanted to make a thesis on TATA motors to know the brand value of TATA among its
customers. Also, after the launch of NANO I wanted to know what were the changes that
TATA was able to bring in the society?
PGP-FW-2008/10
DF/08/10-M-396
PGP-FW-2008/10
DF/08/10-M-396
______________________________________________________________________
__
______________________________________________________________________
__
Note: -Whenever a student emails his/her response sheet, he/she has to send all the previous
response sheets too. Response sheets should be emailed to the concerned internal guide.
Signature of the guide is not mandatory if the student sends the response sheets through email.
Note:- Students must always use the thesis title as approved and sent to them by email
PGP-FW-2008/10
DF/08/10-M-396