1. Sales and Distribution for Tata Motors and Fiat in India
Sales and Distribution for Tata Motors
Summer Training Report on
Sales and Distribution for Tata Motors
Submitted Partial fulfilment for the award of degree of
Master of Business Administration
Academic Session: 2011-13
Submitted By: Vikas Singal
MBA 3rd Semester
Roll No:736/MBA/11
P.D.M.COLLEGE OF ENGINEERING
Maharshi Dayanand University, Rohtak2011
4. Sales and Distribution for Tata Motors and Fiat in India
ACKNOWLEDGEMENT
I express my sincere gratitude to my industry guide Mr.Abhishek
Grover ,
DIRECTOR, Grover Motors, for his able guidance, continuous support and
cooperation throughout my project, without which the present work would not have been
possible.
I would also like to thank the entire team of Grover Motors, for the constant support and
help in the successful completion of my project.
Also, I am thankful to my faculty guide Mr T.V.Raman of my institute, for his
continued guidance and invaluable encouragement.
5. Sales and Distribution for Tata Motors and Fiat in India
Contents
Declaration
Certificate from Faculty guide
Acknowledgement
Executive Summary
Chapter 1. INTRODUCTION
1.1. Objectives
1.2. Industry Profile
1.3. Company Profile
PAGE NO.
7
Chapter 2: Distribution of Tata Motors
34
Chapter 3. Research Methodology
3.1 Types of Research
3.2 Data Collection Procedures Used in my Research
3.3 Data Collection Techniques
44
Chapter 4. Findings and Analysis
47
Chapter 5. Conclusion
5.1 Conclusion and Recommendations
5.2 Learning from the Internship
77
References
80
Annexure (Sample Questionnaire)
82
6. Sales and Distribution for Tata Motors and Fiat in India
EXECUTIVE SUMMARY
My Study will be limited to speedometers with reference to Sales and Distribution for
Tata Motors in India. To analyze the sales and distribution of TATA motors, I had taken
a dealership as a case study. By working in a dealership I came to know about the
distribution channel of the company.
The main purpose of pursuing my Summer Internship at Tata Motors was to get a better
understanding of the Indian Automobile Industry. Also, I wanted to specifically get an
overview of Tata Motor‟s business group- the kind of customers it caters to, the attributes
which influence the sales of cars; and the strategies which may improve the sales of the
same.
The research started by conducting a small pilot study on a few respondents- this
process easily detects the errors in the questionnaire which may otherwise be overlooked.
I applied the tool of Questionnaires to collect data. I conducted the survey on the existing
customers of the company towards the sales and service of the vehicles. Consumers, from
eclectic age groups, were also surveyed to get a broader picture of their preferences.
7. Sales and Distribution for Tata Motors and Fiat in India
INTRODUCTION
1.1 Objectives
To study the distribution channel of Tata motors.
To conduct sales of cars of Tata Motors.
To analyze the customer's satisfaction by conducting a research.
8. Sales and Distribution for Tata Motors and Fiat in India
1.2 INDUSTRY PROFILE
AUTOMOBILE INDUSTRY IN INDIA
In the fast moving world with the biggest countries with huge economies India has
managed to be the eleventh in the world for annual production of 2 million units
approximately. This sector in India is growing at a very fast rate and it has crossed China
in terms of selling the Units. In the matter of population India is the second largest
country in the world with a population of 1.1 billion. In this respect it is just next to
China. But it has a very small land mass as compared to China. India has become an
attraction for car manufacturers around the Globe as a graph of its ownership of car i.e. 7
per 1000 people.
Automobile industry in India comprises of 13 million direct and indirect employees. It
contributes 3.1% of India‟s GDP (nominal) and the valuation of the industry is about US$
34 billion. India's motorcycle market with an annual sale of 5 million units is the second
largest around the globe. India has Fourth largest commercial vehicle market, Eleventh
largest passenger car market, Fifth largest bus & truck market (by volume) around the
globe.
With this growing pace India by 2016 is expected to be the seventh largest automobile
market and by 2030 worlds 3rd largest behind US & China.
Late 1890‟s is the time when Automobile was introduced in India but it came into
existence only after the independence in 1947. Until 1980‟s Hindustan Motors and some
small manufacturers Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard
Motors held an oligopoly till the time when Maruti Udyog Suzuki came into existance
after the death of the great Indian politician Sanjay Gandhi who championed the need for
a "people's car". It quickly gained over 50% of the market share. The Maruti 800 became
popular because of its low price, high fuel efficiency, reliability and modern features
relative to its competition at the time.
From the decades in the Indian automotive industry there were only few vehicle models
but then also there is a good lead time to get a car after the booking. So with changing
9. Sales and Distribution for Tata Motors and Fiat in India
economy, competition, and urge to grow big we are here with more than 100 Models and
every moth with a new model to offer. Keeping in mind the comfort of the people and
their choice the models are prepared. Performance of vehicle is increasing day by day, its
fuel efficiency and reliability has no match with others around the globe.
Inspite of having manufacturing of major foreign automakers based in India our Indian
Domestic Automobile Companies are leading in the Market. Tata Motors is the largest
commercial vehicle company, Maruti Suzuki is the largest passenger vehicle company &
Hero Honda is the largest motorcycle company in India. Mahindra & Mahindra, Ashok
Leyland and Bajaj Auto are some more leading automobile manufacturers.
Automobile Domestic Sales Trends (Number of Vehicles)
Category
2006-07
2008-09
% change
Passenger Car
882208
1076408
22.01
Total Passenger Vehicles
1143076
1379698
20.7
Total Commercial Vehicles
351041
467882
33.28
Three Wheelers
359920
403909
12.22
Total Two Wheelers
7052391
7857548
11.41
Grand Total
8906428
10109037
13.5
Source: Society of Indian Automobiles Manufacturers.
Maruti Udyog Ltd, the biggest car maker of the country, selling 2, 93,536 vehicles
as against 2,43,211 in the corresponding year last year. having a growth rate of
about 20.7 per cent during April-August,2009
Mahindra & Mahindra Ltd's (M&M) cumulative sales with exports were 1,06,094
units compared to 78,144 units in the corresponding period last fiscal during the
April-September having a growth rate of about 35.8 per cent
Honda Siel Cars India Ltd. (HSCI), leading manufacturer of premium cars in
India, selling 41,638 units against 35,853 units. having a growth of 16.1 % in
cumulative sales for the period January to August, 2009.
10. Sales and Distribution for Tata Motors and Fiat in India
DaimlerChrysler sold 1,681 units in India from January to August, growth of over
22 per cent from a year ago.
Car-maker General Motors India (GM), totally owned subsidiary of General
Motors Corporation, reported a 114 % increase in domestic sales during August at
5,817 units against 2,720 units in the same month last year.
Hero Honda crossed the 2 million unit sales mark during the Jan-Aug period.
Motorbike exports from India have grown to 3 to 21 to 321 units in the AprilAugust period this fiscal from 2 to 37 to 103 units in the same period last year.
CARS BY PRICE RANGE
Nano
Ambassador
Fiat Palio
Hyundai Santro, Getz
Chevrolet Opel Corsa
Maruti Zen, Wagon R, Versa, Esteem, Gypsy
Ford Icon & Fiesta
Tata Indica, Indigo XL, Indigo Marina
Chevrolet Swing, Optra Magnum, Tavera
Rs. 5-10 Lakhs
Reva
Rs. 3-5 Lakhs
Under Rs. 3 Lakhs
Maruti 800, Alto, Omni
Hyundai Accent, Elantra
Mahindra Scorpio
Maruti Baleno
Toyota Innova
Tata Safari
11. Sales and Distribution for Tata Motors and Fiat in India
Mahindra Bolero
Hyundai Sonata Embera
Toyota Corolla
Ford Mondeo & Endeavour
Chevrolet Forester
Skoda Octavia & Combi
Honda Civic
Honda CR-V
Maruti Suzuki Grand Vitara
Terracan & Tucson, Captiva
Mitsubishi Pajero
Audi A4
Opel Vectra
Honda Accord
Mercedes C Class
Rs. 15-30 Lakh
Honda City ZX
Rs. 10-15 Lakhs
Mitsubishi Lancer, Mitsubishi Cedia
Toyota Camry
Major Companies
List of automobile manufacturers in India
Indian companies
Force Motors
Force Motors was formerly known as Bajaj Tempo Ltd. Founded in 1958, it is located in
Akurdi, a Pimpri-Chinchwad neighbourhood of Pune, India. They manufacture three
wheelers, multi utility and cross country vehicles, light commercial vehicles, tractors and
now heavy commercial vehicles.
Gama, Cruiser
12. Sales and Distribution for Tata Motors and Fiat in India
Trax, Toofan, Challenger
Ashok Leyland
Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India.
In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin
Cars. The Company's destiny and name changed soon with equity participation by British
Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955.
For over five decades, Ashok Leyland has been the technology leader in India's
commercial vehicle industry, moulding the country's commercial vehicle profile by
introducing technologies and product ideas that have gone on to become industry norms.
Ashok Leyland has six manufacturing plants - the mother plant at Ennore near Chennai,
two plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly
plants at Alwar and Bhandara.
From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage
vehicles, from numerous special application vehicles to diesel engines for industrial,
marine and genset applications, Ashok Leyland offers a wide range of products.
Hindustan Motors
Hindustan Ambassador
Hindustan Motors is one of the oldest Indian car manufacturers. It is best known for the
Ambassador which has been virtually unchanged for about 30 years. It is still very
popular as a taxi and is widely used by Indian politicians. Many people have come to
associate India with Ambassador and is a prominent part of the Indian landscape.
Trekker (Discontinued)
Landmaster (Discontinued)
Contessa (Discontinued) - 5th Generation Vauxhall Victor
Ambassador - a version of the 1950s Morris Oxford
Mahindra & Mahindra Limited
Mahindra Classic
The automotive section of Mahindra started off when a first batch of seventy five Utility
Vehicles (UVs) was imported in CKD condition from Willys in 1947. It has come a long
way, not just manufacturing Jeeps but also agricultural equipment and light trucks.
13. Sales and Distribution for Tata Motors and Fiat in India
Armada (Discontinued)
Voyager Discontinued)
Bolero
Commander
CL
MaXX
Scorpio
Mahindra and Mahindra Classic This was an open jeep with good off roading
capabilities, a 4*4 and 4*2 option, huge headlamps and roof mounted lights. ==
Maruti Suzuki
Maruti 800
Maruti Gypsy
Maruti Udyog was formed as a partnership between the Government of India and Suzuki
of Japan. It brought India its first "affordable" car, the Maruti 800. It is the biggest car
manufacturer in India and especially dominant in the small car sector. Then it brought out
The Maruti 1000, made by Maruti Udyog was the first ever contemporary sedan-type car
launched in India. The car (which Suzuki sold in other countries as the Cultus/Swift/Geo
Metro with a 1.3 L or 1.6 L engine) was introduced in October, 1990. Sold at Rs. 3.81
lakh, it was back then the costliest car released in the Indian market. Then the company
replaced it with Esteem and from that days on a line of Suzuki cars rolled out in the
Indian market.
800
Omni
1000 (Discontinued)
Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)
Alto
Esteem(Discontinued)
Baleno - (Discontinued)
Baleno Altutra - (Discontinued)
14. Sales and Distribution for Tata Motors and Fiat in India
Gypsy
Swift
SX4
WagonR
Versa
Zen Estilo - First Generation Suzuki MR Wagon
Grand Vitara - First Generation Suzuki Grand Vitara
Eigo
Multi-national companies
BMW
BMW is manufacturer of prestigious sport sedans that are known for their nimble
handling. BMW enjoys good brand recognition in India, thanks to Indian movies and the
rich who have been importing these cars for decades. It has set up a plant in Chennai,
Tamil Nadu, to manufacture cars locally exclusively for the local market with no plans
for export. It set up the plant to circumvent high import duties.
3 Series
5 Series
7 Series
Fiat
Fiat India has struggled in India since its inception. The Fiat Uno was one of the first
products to be introduced. The Fiat Palio was later introduced and was initially a big hit
with its style and ride comfort coupled with solid build but has slowly lost its sheen due
to low fuel efficiency. Other models were introduced such as the Palio Weekend and
Siena. Fiat tried re-branding of the Fiat Siena to Fiat Petra without much success. It roped
in Sachin Tendulkar as one of its brand ambassadors. Even Michael Schumacher
appeared in an ad for the Palio. It has entered now into an alliance with Tata Motors to
jointly manufacture cars at its plant in Ranjangaon, near Pune. The facility will enable the
two companies to make about 200,000 cars per annum, and also house an engine
manufacturing unit with a capacity of 250,000 units per annum. The alliance will also see
15. Sales and Distribution for Tata Motors and Fiat in India
Tata Motors use Fiat's diesel technology - the 1.3 litre multijet diesel engine - for its own
vehicles. The two companies also have a distribution and service partnership.
Uno(Discontinued)
Palio
Palio Stile
Siena(Discontinued)
Siena Weekend (Discontinued)
Petra(Discontinued)
Adventure
Punto
Linea
Ford Motors
Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a major
plant in Tamil Nadu. The first model was the Escort.
Escort (Discontinued) - It was offered with a 1.3 Liter petrol termed Alpha and
1.5 Liter Diesel engine termed Orion, and at a time when the car wars in India had
just begun. The diesel version was fancied by many due to the fact that diesel was
available at half the price of petrol(gasoline/gas) in India at that time. Among the
famous owners of the Ford Escort was Azim Premji who drove a black one for
almost eight years until he traded it for a Toyota Corolla. The Ford Escort 1.8 was
ranked the highest in the J.D. Power and Associates 1997 Indian Customer
Satisfaction Study. It was also voted the Best Quality Car in the J.D. Power India
Initial Quality Study.
Ikon - Was launched to phase out the Escort, known for the Rocam engine,
available with a choice of petrol and diesel version, the car did well. Ford is
known for launching new versions with some minor cosmetic changes every now
and then.
Mondeo (Discontinued) - Was Ford's offering to the D segment in India in 2001,
was brought in as a CBU from Belgium with Ghia being the only trim version
available. It was available with both 2.0L Duratorq diesel and 142 bhp 2.0L petrol
16. Sales and Distribution for Tata Motors and Fiat in India
Duratec engines. It was the first car to be offered with Xenon HID headlamps in
India. It is alleged that the Mondeo performed better than the 2.3 L Accord
available in India at that time. But buyers stayed away as it was more expensive
than the Accord. The diesel version was phased out in 2003.
Endeavour - Sold as the Ford Everest in other parts of Asia and based on the
Ranger pickup, it was offered in both 4X4 and 4X2 options but with only a 2.5 L,
4 Cylinder In-line, Turbocharged & Inter cooled Diesel Engine and manual
transmission.
Fusion - was launched as an Urban Activity Vehicle available with a 1.6 L , 4 cyl
101 bhp (75 kW/102 PS) engine with 5 speed manual transmission. In 2007 a
diesel version was launched which has the same 1.4 L 68 bhp (51 kW/69 PS)
engine as the Fiesta.
Fiesta - Launched in November 2005 and was Ford's fifth model in India, and is
available in 1.6 L petrol and 1.4 L diesel engines. Bill Ford made a personal visit
to launch the car in India.
General Motors
Chevrolet has been one of the most recognized brands in India for several decades. They
were made popular as the vehicle of choice of the heroes in Bollywood movies. The
model lineup consists of vehicles from cheaper sister brands like Daewoo. General
Motors initially entered India with the Opel brand, but the Opel brand was dropped in
March 2006 because sales were at an all time low due to high prices and General Motors
wanted to focus more on their Chevrolet brand. Since the Chevrolet brand was introduced
in India, there have been no new Opel products.
GM's Indian operations were originally a JV between Hindustan Motors and GM, with
most of GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM
India is now wholly owned by GM.
Cars from Chevrolet are:
Tavera - Rebadged Isuzu Panther
Forester - (Discontinued) Rebadged First Generation Subaru Forester
Aveo - Second Generation Daewoo Kalos sedan
17. Sales and Distribution for Tata Motors and Fiat in India
Aveo UV-A - First Generation Daewoo Kalos hatchback
Optra - Rebadged Daewoo Lacetti
SRV - Rebadged Daewoo Lacetti
Spark - Formerly Daewoo Matiz in India
Cruze
Captiva
Honda
Honda Siel Cars entered India in 1995. It sells 4 cars in India - the City, Civic, Accord,
and CR-V. The manufacturing plant of Honda Siel is located in Greater Noida. The
model of Accord sold in India is the 2003 model. The most inexpensive car from Honda The City. The most Expensive - The Honda Accord V6.
Accord - It was introduced in India in July 2001. It is sold in three versions Accord VTi-L M/T, Accord VTi-L A/T and Accord V6 A/T. Both the engines,
the standard i-4 and V-6 have be de-tuned which produce less power compared to
the American models, the I-4 produces 142 bhp (106 kW/144 PS) while the V6
produces 221 bhp (165 kW/224 PS), de-tuned for better fuel efficiency.
City - Was launched in India in December 1997 ,initially offered in two options.
A 1.3 liter engine producing 90 bhp (67 kW/91 PS) and a bigger 1.5 liter
producing 100 bhp (75 kW/101 PS). Two years later a VTEC option was also
offered. All were four cylinder engines. In October 2003 the City underwent a
major revamp and is popularly called as New Honda City (NHC). Surprisingly
Honda gave the new City less powerful engines and decided to improve the fuel
efficiency. The new City features a 1.5 liter engine producing 77 bhp
(57 kW/78 PS). It offered more interior space and with bright and refreshing
interiors. About two years later, a face lifted version - CITY ZX - was introduced.
At the same time, a VTEC engine model too was introduced.
Civic - Was launched in July 2006 in India 6 months after the international debut.
The car is the first in this segment in India to offer unprecedented safety features
like ABS, EBD as standard. It is also the first in its class to feature reverse swing
18. Sales and Distribution for Tata Motors and Fiat in India
windshield wipers. The only problem with the car with respect to India is its low
ground clearance.
CR-V - It was introduced in India along with the Accord. It was and is still
offered with a 2.4 liter i-VTEC engine producing 152 bhp (113 kW/154 PS).
Hyundai
When Hyundai entered India, the brand was virtually unknown in the Indian market.
They signed up Bollywood actor Shah Rukh Khan and their excellent advertising
campaign made Hyundai a household name and helped it reach the second place behind
market leader Maruti Suzuki.
Santro - second generation Hyundai Atos
Accent - second generation Hyundai Accent sedan
Sonata - sold as the Sonata Embera
Verna - third generation Hyundai Accent sedan
Getz - sold as the Getz Prime
Elantra - 3rd generation Hyundai Elantra sedan
Terracan (discontinued)
Tucson
i10 - brand new small car, global launch in India in 2007.
I20
Renault-Nissan
Logan In partnership with Mahindra and Mahindra
Mercedes-Benz
M-Class
S-Class
E-Class
C-Class
Mercedes-Benz has had to cater to the ever growning luxury segment in India, in a much
better fashion now, especially after the arrival of the other luxury German manufacturers.
19. Sales and Distribution for Tata Motors and Fiat in India
Now, Mercedes-Benz cars are launched in India soon after the worldwide launch and
homologation as opposed to earlier, when Mercedes-Benz had monopolized the niche
Indian market.
Mitsubishi Motors
Lancer - Sixth Generation Mitsubishi Lancer
Cedia - Seventh Generation Mitsubishi Lancer
Pajero - Second Generation Mitsubishi Pajero
Montero - Third Generation Mitsubishi Pajero
Škoda
Škoda is an important car manufacturer of India. It recently launched the Laura, the
Octavia still continues to exist. Skoda also offers the Superb in India but it's not too
popular.
Octavia
Superb
Laura
Fabia
Toyota
Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to
make way for the Toyota Innova, which was launched in India in 2005. The most
expensive car from Toyota is a very powerful SUV - The Land Cruiser Prado. Toyota
Kirloskar Motors LTD is a joint venture between Toyota Motor Corporation and the
Kirloskar Group.
Qualis (Discontinued) - 3rd Generation Toyota Kijang
Camry - 6th Generation Toyota Camry
Corolla - 9th Generation Toyota Corolla
Innova
Land Cruiser Prado - 3rd Generation Toyota Prado
SWOT
STRENGTHS
Largest production base about cars per day
20. Sales and Distribution for Tata Motors and Fiat in India
Different model exported to different country.
Well established networking and distribution system in 30 countries of the world.
Market share of 30% in the Indian car industry.
Good technical support and service abroad.
Produces the most fuel efficient vehicles.
Highly efficient and technical staff abroad.
Good customer support.
Good infrastructure in Europe.
WEAKNESS
Low emphasis on research and development
Technology in automobile is out dated.
OPPORTUNITIES
Largest market in Europe and also good market in India.
THREATS
Competition from the automobile industry of the world.
21. Sales and Distribution for Tata Motors and Fiat in India
1.3 COMPANY PROFILE
a. Review of literature on the company
Tata Motors
Tata Motors Limited (formerly known as TELCO (TATA Engineering and Locomotive
Company), (NYSE: TTM) - is India's largest passenger automobile and commercial
vehicle manufacturing company. It is a part of the Tata Group, and has its headquarters in
Mumbai, Maharashtra.
One of the world's largest manufacturers of commercial vehicles and known for its
hatchback passenger vehicle Tata Indica, Tata Motors has its manufacturing base in
Jamshedpur, Lucknow, Pune and Singur. The OICA ranked it as the world's 21st largest
vehicle manufacturer, based on figures for 2006.[1]
Tata Motors was established in 1945, when the company began making trains. Tata
Motors was first listed on the NYSE in 2004. Tata Motors gained Rs. 320 billion during
2001-2006 which was among the top 10 corporate profits in India. In 2004 it also bought
Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in
22. Sales and Distribution for Tata Motors and Fiat in India
South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it
controlling rights in the company. On 10 January 2008, Tata Motors launched their much
awaited Tata Nano, noted for its Rs 100,000 price-tag, at Auto Expo 2008 in Pragati
Maidan, Delhi.
Tata Motors commences distribution of Fiat Cars across India
Tata Motors and Fiat India Private Limited announced the commencement of the new
Tata-Fiat dealer network to sell both Tata and Fiat branded cars, along with service and
sales of spare parts, in 11 cities across India.
The Tata-Fiat dealer network comprises 25 existing Tata Motors Passenger Vehicles
dealers and 3 existing Fiat India dealers. The 28 Tata-Fiat dealers will sell the Fiat Palio
(1.2 EL PS, 1.2 ELX, 1.6 Sports) and the Fiat Adventure (1.6 Sports), and all Tata
Motors Passenger Vehicles - the Tata Indica, the Tata Indigo, the Tata Indigo Marina, the
Tata Sumo and the Tata Safari.
The beginning of operations of the Tata-Fiat dealer network follows the agreement,
announced by the Fiat Group and Tata Motors on January 13, 2006, to cooperate on
dealer network sharing. The execution of the distribution arrangement is the first
initiative post the signature of the Memorandum of Understanding signed between the
Fiat Group and Tata Motors in September 2005.
Discussions are on to explore other
areas of co-operation, on which specific announcements can be expected once their
feasibility is established.
Commenting on the commencement of the Tata-Fiat dealer network, Mr. Rajiv Dube, Sr.
Vice-President (Manufacturing & Commercial - Passenger Cars Business Unit), Tata
Motors, said, “Tata Motors is delighted to be partnering Fiat India in bringing a larger
portfolio of products under a single roof at our joint dealerships. Between the Tata and
Fiat brands, the company is in a position to offer one of the widest product offerings in
the Indian market with the promise of several exciting options to come.”
Mr. Giovanni de Filippis, Managing Director of Fiat India Private Limited, said, “The
coming together of Tata and Fiat through the dealer network sharing signifies better
service, after sales support and more convenience to Fiat customers. Our customers have
always been delighted with the superior build quality of our cars. The after sales support
23. Sales and Distribution for Tata Motors and Fiat in India
that comes with the Tata trust will complement this, and Fiat is confident of serving its
customers better.”
Existing Fiat dealers will continue to retail the full range of Fiat offerings, including the
Fiat Petra.
About Fiat
One of the pioneer companies in the automobile industry, Fiat has produced more than 85
million passenger cars and light commercial vehicles, including no less than 400 models,
since 1899, when the company was founded in Turin, Italy. Some of them have
represented milestones in the automotive industry. The Fiat Group‟s Automobiles Sector
operates world-wide with the following brands: Fiat, celebrated for value, economy, and
innovation and whose mass produced cars are distributed over almost the entire price
class spectrum; Lancia (acquired in 1969) means prestige cars noted for their elegant
styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and
luxury vehicles of style and distinction; Maserati (acquired in 1992) represents a
landmark in the history of the automobile; Ferrari (acquired in 1969), well renowned for
unsurpassed design, performance, and luxury, is a legendary automobile that imparts
special cachet to its owner.
Fiat India Private Limited, with its renewed brand strategy for the Indian market, is
focused on the premium end of the B & C category in the growing automobile sector.
24. Sales and Distribution for Tata Motors and Fiat in India
Fiat Adventure Sport is the latest offering targeted at the new generation of customers
who enthusiastically seek out the latest trends in style, safety, engine and performance.
Fiat‟s superiority in design and technology has been re-emphasized from the fact that its
1.3-multi jet has been chosen as the “Engine of the Year 2005” in the 1 to 1.4 litres by the
Jury of the “International Engine of the Year” award.
25. Sales and Distribution for Tata Motors and Fiat in India
b. Historical analysis
Background
Tata Motors is a company of the Tata and Sons Group, founded by Jamshetji Tata. It is
currently headed by Ratan Tata.
The company has the workforce of 24000 employees working in its four plants and other
regional and zonal offices across the country.
Tata Motors' range of passenger cars is still not comprehensive by international
standards. In commercial vehicles, Tata Motors commands an imposing 65% market
share in the domestic heavy commercial market. The company is trying to modernise its
range of commercial vehicles. Tata Motors hived off its vehicle finance business into a
separate subsidiary, TML Financial Services (TMLFS), in September 2006.
Time line and milestones
Tata Motors launches its first truck in collaboration with Mercedes-Benz
1960-1986
Tata Motors is the 2nd largest commercial vehicle maker in India. World over it is the
world's fifth largest medium and heavy commercial vehicle manufacturer. It started its
journey in 1960 with the manufacturing of first commercial vehicle (a copy of a Daimler
Benz model) in Pune. It took five years for the company to begin the commercial
26. Sales and Distribution for Tata Motors and Fiat in India
production of heavy commercial Vehicles. Considering the road infrastructure of the
country which does not support heavy vehicles the company adopted a route for light
commercial vehicles (LCV). It came out with its first LCV, Tata 407, in 1986.
1987-1996
Tatamobile introduced in 1989. Post liberalization, in order to expand rapidly, the
company adopted the route to joint ventures. In 1993 it signed with Cummins Engine
Co., Inc., for the manufacture of high horsepower and emission friendly diesel engines. It
was an effort made to reduce the pollution in the existing Tata engines and to produce
more environmentally friendly engines. Furthering the trail of JVs it signed a joint
venture agreement with Tata Holset Ltd., UK, for manufacturing turbochargers to be used
on Cummins engines.
1997-2006
In 2000, it launched compressed natural gas (CNG) buses and also filled the product line
gap through the introduction of the 1109 vehicle which is an intermediate commercial
vehicle and is useful for medium tonnage loads. Post 2000, the company introduced a
variety of new models. It introduced the Ex- series vehicles with high tonnage capacity
and high pick up and also came out with the entirely new LCV (207 DI) with direct
ignition technology to cater to the customers' requiring one and same vehicle for
commercial as well as personal use.
Tata Novus
In 2004, it acquired the Daewoo Commercial Vehicle Company of South Korea. The
reasons behind the acquisition were:
Company‟s global plans to reduce domestic exposure The domestic commercial
vehicle market is highly cyclical in nature and prone to fluctuations in the
domestic economy. Tata Motors has a high domestic exposure of ~94% in the
MHCV segment and ~84% in the light commercial vehicle (LCV) segment. Since
the domestic commercial vehicle sales of the company are at the mercy of the
structural economic factors, it is increasingly looking at the international markets.
The company plans to diversify into various markets across the world in both
MHCV as well as LCV segments.
27. Sales and Distribution for Tata Motors and Fiat in India
To expand the product portfolio Tata Motors recently introduced the 25MT GVW
Tata Novus from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage on
the strong presence of TDCV in the heavy-tonnage range and introduce products in India
at an appropriate time. This was mainly to cater to the international market and also to
cater to the domestic market where a major improvement in the Road infrastructure was
done through the National Highway Development Project On its journey to make an
international foot print, it continued its expansion through the introduction of new
products into the market range of buses (Starbus & Globus).
Joint ventures
In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors
acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing company and
introduced its high-end inter-city buses in the country.
Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based
global leader in bus body building. 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.
A venture with British carmaker MG Rover saw the launch of the CityRover in 2003.
This car was based on the Tata Indica and built alongside it in India, but sales were not
strong and production finished in April 2005 when MG Rover went bankrupt. MG Rover
was purchased by Nanjing Automobile of China three months later, but when car
production resumed in 2007, the City Rover was not part of the production plans.
Tata Ace
The latest hit of Tata Motors is its mini truck Ace. Ace, India's first indigenously
developed sub-one ton mini-truck, was launched in May 2005. It was an instant hit.
Analysts opined that Ace had changed the dynamics of the light commercial vehicle
(LCV) market in India by creating a new market segment termed the SCV segment. Ace
rapidly emerged as the first choice for transporters and single truck owners for city and
rural transport. By October 2005, since the launch of Ace, LCV sales of Tata Motors had
28. Sales and Distribution for Tata Motors and Fiat in India
grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace was
built with a load body produced by Autoline Industries.
[3]
By 2005, Autoline was
producing 300 load bodies per day for Tata Motors. Autoline
In 2005, Tata Motors became the only major engine manufacturer in the world (aside
from a Briggs & Stratton emissions test) to express any formal interest in the turbulenceboosting cylinder head grooves invented by Somender Singh (Mysore).
2007
Tata Indigo
Tata Motors, through its joint venture with Fiat, gained access to Fiat‟s diesel engine
technology and is likely to gain access to the latter‟s strong overseas distribution network
for its passenger cars. Tata Motors is looking to extend this relationship to other segments
like pick-ups and MHCVs. The company also plans to expand its global footprint with
the launch of „Global Truck‟ and „Global Pick-up‟ in domestic and international markets
by 2007-08. Tata Motors plans to launch the new pick-up in India, Southeast Asia,
Europe, South Africa, Turkey and Saudi Arabia. The launch of the global truck will mark
the entry of the company into developed markets like Europe and the United States. The
project was initially a collaboration between Tata Motors and its subsidiary Tata Daewoo
Commercial Vehicles, but later Tata Motors decided to work with Iveco as Daewoo‟s
design was not in sync with the needs of sophisticated European customers. The company
has formed a joint venture with Thailand‟s Thonburi,( Exhibit-1) an independent auto
assembler, in which Tata Motors will hold a 70% stake. The joint venture will set up a
plant with capacity to manufacture pick-ups a year and will sell them in Thailand, the
second largest pick-up market in the world, and in other regional markets. The joint
venture product is likely to be a part of Tata Motors‟ „Global pick-up‟ plans.
29. Sales and Distribution for Tata Motors and Fiat in India
2008 onwards
On January 3rd, 2008, The Hindu Business Line reported that Ford Motor Company (US)
named Tata Motors the "preferred bidder for Ford's British marquees Jaguar and Land
Rover ... but a final decision for the sale was yet to be taken".
Auto policy of Government of India (GOI) envisions to establish a globally competitive
automotive industry in India and to double its contribution to the economy by 2010. GOI
policy has rightly recognized the need for modernizing of vehicles to arrest degradation
of air quality. The terminal life policy for commercial vehicles and move toward
international taxing policies linked to age of vehicles, are steps in the right direction
which will lead to increased sales for Tata motors Commercial vehicle division.
Effect of Government Policy on Tata Motors CV Division Commercial Vehicles segment
sector has been at the forefront of the strong showing by the automotive industry over the
past few years. Following factors have led to growth in sales:
The cut in excise duty that enabled manufacturers like Tata Motors to reduce
prices
The attractive financing offers and freebies enabled by low interest rate policies
by Government
the need to transport higher volumes of agricultural and industrial goods
Low interest rates
Tata Xover
New auto policy considered by Government of India last announced an automobile policy
in December 1997. The policy required majority-owned subsidiaries of foreign car firms
to invest at least $50 million in equity if they wished to set up manufacturing projects in
India. It also forced them to take on export obligations to fund their auto part imports and
required them to submit to a schedule for increasing the share of locally made parts in
their cars. Mere car assembling operations were not welcomed.
An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh
investment guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be considered a
part of the minimum foreign investment made by it in an auto-making subsidiary in India.
30. Sales and Distribution for Tata Motors and Fiat in India
The move is aimed at helping India emerge as a hub for global manufacturing and
sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and $2.7
billion by 2010. The policies adopted by Government will increase competition in
domestic market, motivate many foreign commercial vehicle manufactures to set up
shops in India, whom will make India as a production hub and export to nearest market.
Thus Tata Motors CV will have to face tough competition in near future, which might
affect its growth negatively
Global competition
Tata Motors have some distinct advantages in comparison to other MNC competitors.
There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35
percent of sales in developed economies. Tata motors have extensive backward and
forward linkages and it is strongly interwoven with machine tools and metals sectors.
India is an excellent source for IT based engineering solution for products & process
Integration. There are strong supporting industries i.e. auto component industry has world
class capabilities. There is huge demand in domestic markets due to infrastructure
developments and Tata Motors is able to leverage its knowledge of Indian market. There
are favorable Government polices and regulations to boost the auto industry i.e. Incentive
for R&D.
c. SWOT
SWOT Analysis - Tata Motors Limited
The company began in 1945 and has produced more than 4 million vehicles. Tata Motors
Limited is the largest car producer in India. It manufactures commercial and passenger
vehicles, and employs in excess of 23,000 people.
Strengths
The internationalisation strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into
the new market. The benefit is that Tata has been able to exchange expertise. For
31. Sales and Distribution for Tata Motors and Fiat in India
example after the Daewoo acquisition the Indian company leaned work discipline
and how to get the final product 'right first time.'
The company has a strategy in place for the next stage of its expansion. Not only
is it focusing upon new products and acquisitions, but it also has a programme of
intensive management development in place in order to establish its leaders for
tomorrow.
The company has had a successful alliance with Italian mass producer Fiat since
2006. This has enhanced the product portfolio for Tata and Fiat in terms of
production and knowledge exchange. For example, the Fiat Palio Style was
launched by Tata in 2007, and the companies have an agreement to build a pickup targeted at Central and South America.
Weaknesses
The company's passenger car products are based upon 3rd and 4th generation
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat
has not got a foothold in the luxury car segment in its domestic, Indian market. Is
the brand associated with commercial vehicles and low-cost passenger cars to the
extent that it has isolated itself from lucrative segments in a more aspiring India?
One weakness which is often not recognised is that in English the word 'tat' means
rubbish. Would the brand sensitive British consumer ever buy into such a brand?
Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see
opportunities and strengths).
Opportunities
In the summer of 2008 Tata Motor's announced that it had successfully purchased
the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of
the World's luxury car brand have been added to its portfolio of brands, and will
undoubtedly off the company the chance to market vehicles in the luxury
segments.
32. Sales and Distribution for Tata Motors and Fiat in India
Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in
2004 for around USD $16 million.
Nano is the cheapest car in the World - retailing at little more than a motorbike.
Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the
Nano the answer in terms of concept or brand? Incidentally, the new Land Rover
and Jaguar models will cost up to 85 times more than a standard Nano!
The new global track platform is about to be launched from its Korean
(previously Daewoo) plant. Again, at a time when the World is looking for
environmentally friendly transport alternatives, is now the right time to move into
this segment? The answer to this question (and the one above) is that new and
emerging industrial nations such as India, South Korea and China will have a
thirst for low-cost passenger and commercial vehicles. These are the
opportunities. However the company has put in place a very proactive Corporate
Social Responsibility (CSR) committee to address potential strategies that will
make is operations more sustainable.
The range of Super Milo fuel efficient buses are powered by super-efficient, ecofriendly engines. The bus has optional organic clutch with booster assist and
better air intakes that will reduce fuel consumption by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car business for
40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of
quality and lean production.
Sustainability and environmentalism could mean extra costs for this low-cost
producer. This could impact its underpinning competitive advantage. Obviously,
as Tata globalises 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
33. Sales and Distribution for Tata Motors and Fiat in India
include Ford, Honda and Toyota. In fact the entire Indian market has become a
target for other global competitors including Maruti Udyog, General Motors, Ford
and others.
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.
34. Sales and Distribution for Tata Motors and Fiat in India
2 Distribution Strategy/ Channels of the Tata Motors and Fiat in India
Distribution of the product
Distribution Method
Distribution always takes place through a cycle but it is different with the products.
There are several steps which complete the entire cycle. It usually starts with
manufacturer then to distributor and then finally reaches in the hand of consumer. This is
the main cycle which is used globally. Retail may takes place before it reaches to the
consumer.
MANUFACTURER – DISTRIBUTOR – CONSUMER
1st distribution channel
1. In this type of channel the company uses its sales representatives to deal with the
dealers directly. The dealers place the order through the sales representatives who visit
them periodically, and the products are delivered directly from the company.
Some companies appoint Direct Dealers who act as their Franchisee Outlets or their
Exclusive showrooms.
2nd distribution channel
2. In this channel of distribution the company appoints distributors on the basis of
District/ Population /No of Dealers to be handled by one distributor. The area of
operation and its potential is also taken into consideration.
Some of the companies make the distributor totally responsible from appointing the
dealers to providing after sales service.
35. Sales and Distribution for Tata Motors and Fiat in India
3rd distribution channel
3. In this channel of distribution the company appoints Distributors as well as Direct
Dealers. The company appoints distributors to deal with small dealers who order small
quantities. With the dealers who have good potential and sales the company deals
directly.
4th distribution channel
4.
In this channel the company appoints a C&F agent who acts on behalf of the
company. The C&F agent is totally responsible for appointment of Distributors and
Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.
36. Sales and Distribution for Tata Motors and Fiat in India
DISTRIBUTION NETWORK TATA MOTORS
TATA MOTORS
TIER I
VOLUME
RESELLE
rR
TIER I
Distributors
System
Integrators
Own sales force
Value
Resellers
Resellers
CUSTOMER
37. Sales and Distribution for Tata Motors and Fiat in India
CHANNEL STRUCTURE
Scenario 1
Scenario 2
Company‟s warehouse
Customer
(Placing
Order
(Direct billing)
Directly)
Customer
To save the consumer from paying extra amount in the form of taxes and duties a
consumer can directly place an order with the Tata Motors warehouse is a pictorial
representation of the same, also there maybe a case where all the 4 or any one of the
national Dealers have warehouses in Singapore and consumer places order with these
distributor then in that case these distributors will place the order to Tata Motors which
will have direct billing with the distributors and distributors will have direct billing with
the consumer.
How do the finished products of your company move from your end to
consumer’s end?
CONSUMER
RESELLER
In this distribution network a customer with the small requirement reaches the reseller
who buys the product from the big distributors like Ingram, Redington,Tech pacific and
iris.
How the finished products moves from Tata Motors end to consumer’s
end:
CONSUMER
RESELLER
38. Sales and Distribution for Tata Motors and Fiat in India
In this distribution network a customer with the small requirement reaches the reseller
who buys the product from the big distributors like Ingram, Redington, Tech pacific and
iris.
SALES
FORCE
VALUE
RESELLER
BUSINESS
Tata
Motors
This model is drawn to show that for named accounts or big business opportunities it is
the companies‟ own sales force and system integrators (value resellers), which hunts
down the prospective business.
Distribution Channels
Channel Structure
1. Outside Pune
Tata Motor
Organization
C&F
Distributer
Retailer
Consumer
39. Sales and Distribution for Tata Motors and Fiat in India
2. There are 17 C&F and 50 distributors who directly deal with Tata Motor.
Functions performed by different channel member
1. The main functions of different channel members are to supply goods, to achieve
targets and to increase sales.
2. One of the main functions of C&F is to achieve the targets assigned to them. They are
responsible for all the activities of their areas.
3. The sale of other goods including the sale of its entire outlet is around 150 crores.
Selection of Channel members: Channels members are selected if the following facilities are available:1.
Godown Facilities
2.
Experience sale persons.
3.
Van, truck, three-wheelers for transportation.
4.
Registered office.
5.
Proper computer facility of maintaining accounts.
6.
Financially strong.
Financial terms and conditions
Tata Motor takes the full payment in advance from the distributor and C&F. Most
probably it takes Cheque if it is local payment and Demand Drafts if it is central
payment. From some distributors Tata Motor also take cash also but always try to avoid
it. No credit facilities are given to any distributor or C&F.
Tata Motor keep some blank cheques from some distributor and C&F even before taking
the order and use the cheque after delivering the goods.
Distributor and C&F mostly sale goods on credit basis which varies from one to another.
Tata Motor give 6-7% discount to C&F and distributor. No margin is given to them. But
they give margin of 10-12% to retailers.
Tata Motor is responsible if any goods spoiled or leak on the way in its transport.
Tata Motor also give 1-2% discount that takes responsibility of spoiled goods. Mainly
these options are given to those who are very far from Raipur and occurred heavy
expense of transport to return back the goods.
To promote sale Tata Motor give extra discount of 2-3 % where the sale is low.
40. Sales and Distribution for Tata Motors and Fiat in India
Order processing
Sale persons of C&F and distributors go to the retailers of their areas and bring the order
daily. After that they give order in the Corporate Office of Tata Motor in Raipur to the
general manager. From corporate office general manager give order in the factory.
the order is ready to deliver and confirming from the corporate office, the goods are
delivered in the trucks.
Order within Raipur and the places near Raipur delivered within 24 hours.
Order outside Raipur delivered according to the distance. It takes from 24 hours to 72
hours.
Every distributor and C&F has a fixed day in a week to give order.
Warehousing
Tata Motor has its own warehouse, which is manage by its own staff. The order of Tata
Motor is delivered by truck. Tata Motors pay expenses for transportation from which the
Tata Motor deals directly.
Sales functioning: Factors taken into account while assigning targets and territories
Population of the area.
Income of the consumers in that area.
Sales during festival seasons.
Area cover.
Targets
Targets are decided by the owner of the Tata Motor for every distributor and C&F. Every
year targets are increased by 10-15%. All the Distributor and C&F have to achieve
minimum 90 % of its targets monthly and remaining has to adjust with the next month
target. There is a meeting held every month of C&F and distributors with the General
Manager of Tata Motor where they find reasons for not achieving the targets and how
they overcome by this problem. In this meeting extra benefits are also given for achieving
the targets.
Responsibilities of the sales person
To supply goods.
41. Sales and Distribution for Tata Motors and Fiat in India
To make new customers.
To bring the order from retailers of their area.
To promote Tata Motor Tata Car.
To report about the sale.
Performance Appraisal
The manager on the targets basis checks the performance of the sales person. The
performance appraisal is check on monthly basis. It is check as regard to achieve target.
The sales persons give daily report to the manager and on that basis the performance is
checked and new target is assigned.
Functions performed by different channel member
The main functions of different channel members are to supply goods and
give monthly report in the organization.
The channel members also supply goods in the outlets of the Tata Motor
India.
They frequently visit outlet of Tata Motor India within Raipur and outside
Raipur to check the sales and whether the target is achieving or not.
They also promote Tata Motor India Tata Car.
The main role of showroom is to supply goods to the area that are assign to
them.
They are responsible for achieving the target assign to them.
Selection of Channel members: Channels members are selected if the following facilities are available:
Financially strong.
Transport facilities.
Registered office.
Godown Facilities.
Selection of channel member for the Franchise
Asked around 1.5 crore for franchise
Space required – 12000 Sq feet
Preference given in Mall
42. Sales and Distribution for Tata Motors and Fiat in India
Transport Facilities
Godown available.
Financial terms:
In Raipur the Sales of Tata Motor India is done mainly on credit basis. The credit
time is not same for the entire distributor. The Finance department of the
company decides the credit period of the Distributor after consulting by sale
manager.
Outside Raipur the payment is received at the time of delivered of goods.
Maximum 15 days allowed paying the payment.
Extra benefit of 1-2% given to distributors who have achieved their annual target.
Order processing
From the main office the order is passed in the factory where production manager
note down the order and report back to the office when the order is ready.
Order within Raipur and the places delivered within 24 hours.
Order outside Raipur delivered according to the distance. It takes from 24 hours to
72 hours.
Warehousing:Tata Motor India has its own warehouse, which is manage by its own staff.
Sales Distributions
Factors taken into account while assigning targets and territories
Targets achieve last year.
Area covered by the Distributors.
Sale made during Festivals seasons.
Locations (for outlets).
Targets
The sales manager decides targets of the distributors. There is an increase in target of 510% annually both for distributor. The targets of both are checked quarterly by the sales
manager and if the target are not seen to be achieve then Tata Motor India sent their own
sales person and try to increase the sales.
Responsibilities of the sales person
43. Sales and Distribution for Tata Motors and Fiat in India
To supply goods to distributors and in outlets.
To make new customers.
To bring the order from retailers of their area.
To promote Tata Motor India Tata Car.
To report about the sale and steps taken to increase the sale.
Performance Appraisal
The sales manager checks the performance of the sales person on target basis and the area
covered. The performance appraisal is check on quarterly basis and on that basis there
Sales Manager assigns new target.
Comparison of Sales and distribution in Tata Motor and Tata Motor India
In the distribution channels both the organization have same distribution channel. But
in other parts of the country Tata Motor distribute the Tata Car through C&f and Tata
Motor India distribute through Super. But the main functions of both are more or less
same.
Tata Motor doesn‟t give franchise but Tata Motor India does and offer around 1-2
crores for that.
Tata Motor take the payment in advance but Tata Motor India takes payment at the
time of delivering of the goods and also gives credit to some dealers.
Both have their own warehouses, which are manage by their own staff.
Tata Motor increases the annual target of Distributor and C&f by 10-15% whereas
Tata Motor India increases by 5 – 10%.
The owner of Tata Motor checks the annual target of all the distributors and C&F
whereas in Tata Motor India Sales manager checks it.
The performance of the Sales person is check on monthly basis in Tata Motor
whereas on quarterly basis in Tata Motor India.
44. Sales and Distribution for Tata Motors and Fiat in India
Research Methodology
3.1 Types of research
Based on the objectives of the study, there are two types of Research:
Exploratory Research- Exploratory research is conducted when one is seeking
insights into the general nature of a situation, the possible decision alternatives,
and the relevant variables that need to be considered. While conducting my study,
I used exploratory research, which was flexible and was aimed at identifying all
the attributes that provides satisfaction to customers before and after buying a
vehicle. I undertook an intensive review of the automobile industry in India, and
screened some issues which I as a researcher felt needed more clarification or
study.
Descriptive research- My exploratory research conducted brought out a host of
factors which affect the customer buying attitude. These factors were then filtered
to form a set of the most important alternatives, which might affect a consumer‟s
and a retailer‟s decision regarding the purchase of vehicle and which brand they
prefer. The purpose was to find an accurate snapshot of the market environment
of automobiles.
3.2 Data collection procedure used in my research :
Pilot Study
After constructing the questionnaire, the pilot survey was conducted among 6 individuals
from the sales force of the company to find out the errors, if any.
45. Sales and Distribution for Tata Motors and Fiat in India
Questionnaire
The questionnaire method has come to the more widely used and economical means of
data collection. The common factor in all varieties of the questionnaire method is its
reliance on verbal responses to questions, written or oral. The researchers found it
essential to make sure the questionnaire was easy to read and understand to all spectrums
of people in the sample. It was also important as researchers to respect the samples time
and energy hence the questionnaire was designed in such a way, that its administration
would not exceed 4-5 minutes. The questionnaires were personally administered. As far
as possible, the questionnaires were filled by me and not given to the respondents.
Field work
Field work is a general descriptive term for the collection of raw data direct from the
consumers, as opposed to secondary research. It plays an important role in collecting the
data. My sample size was 157. In my research, I had to take the feedback from the
existing customers of Tata Motors to know about their satisfaction level and the areas in
which the company was lagging.
Some important points which I kept in mind while doing the fieldwork
Making the respondents comfortable before questioning them by introducing
ourselves as students of Amity Business School and ensuring the respondent that
all information collected is only for academic purpose and will be kept absolutely
confidential.
Ensuring that we fill the questionnaires ourselves.
Not leading a person into any preconceived notion.
Not influencing the respondents‟ answers in any way/form.
Using simple language, so that the technical language does not intimidate the
respondent.
46. Sales and Distribution for Tata Motors and Fiat in India
3.3 Data collection techniques
Primary data
Pilot Study
Questionnaire
Secondary data
It refers to the already existing data. I collected them by following methods –
Internet
Books
Published Articles
Journals
Newspaper Articles
Data Interpretation Tools
Following software‟s has been used during analysis and compiling of data.
SPSS Software
Microsoft Excel
Microsoft Word
47. Sales and Distribution for Tata Motors and Fiat in India
4. FINDINGS AND ANALYSIS
Q 1)
Which of the following best describes your line of work?
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
services
36
22.9
22.9
22.9
business
66
42.0
42.0
65.0
student
27
17.2
17.2
82.2
Taxi services
28
17.8
17.8
100.0
157
100.0
100.0
Total
48. Sales and Distribution for Tata Motors and Fiat in India
From this we interpret that most of the customers in that area are business people
followed by service class. The housewives do not come to the showroom for the service
or purchase of cars.
Q2)
What parameters do you seek in a car before buying
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
brand popularity
19
12.1
12.1
12.1
Performance
69
43.9
43.9
56.1
looks & style
69
43.9
43.9
100.0
157
100.0
100.0
Total
49. Sales and Distribution for Tata Motors and Fiat in India
The customers look for performance and looks& style in a car before purchasing it.
Brand name does not play a vital rule in it.
Q3)
how long have you been associated with tata motors
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
0-1
18
11.5
11.5
11.5
1-3
54
34.4
34.4
45.9
3-5
66
42.0
42.0
87.9
more than 5
19
12.1
12.1
100.0
157
100.0
100.0
Total
Q4)
Which company's car do you possess
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
Tata
106
67.5
67.5
67.5
Fiat
51
32.5
32.5
100.0
Total
157
100.0
100.0
Most of the customers prefer buying Tata cars over Fiat .
50. Sales and Distribution for Tata Motors and Fiat in India
Q 5)
If rebuying would you select Tata of Fiat
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
Yes
127
80.9
80.9
80.9
No
30
19.1
19.1
100.0
157
100.0
100.0
Total
The customers are satisfied with their cars . this is the reason they can rebuy this
company‟s car .
Q 6)
What parameter important for rebuying
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
post sales service
43
27.4
27.4
27.4
Mileage
68
43.3
43.3
70.7
maintenance cost
46
29.3
29.3
100.0
157
100.0
100.0
Total
Of all the customers of TATA motors , most of them consider mileage of the car as an
important parameter for rebuying decision.
51. Sales and Distribution for Tata Motors and Fiat in India
Q7a)
rate tata motors on following parameter knowledgeable sales person
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
3
1.9
1.9
1.9
3
33
21.0
21.0
22.9
4
108
68.8
68.8
91.7
5
13
8.3
8.3
100.0
157
100.0
100.0
Total
The salesperson at the company are rated fairly knowledgeable.
Q7 b)
employees spend enough time with you before sales
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
3
24
15.3
15.3
15.3
4
121
77.1
77.1
92.4
5
12
7.6
7.6
100.0
157
100.0
100.0
Total
The customers feel that the employees spend sufficient time before the sales
52. Sales and Distribution for Tata Motors and Fiat in India
Q7b)
employees spend enough time with you after sales
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
6
3.8
3.8
3.8
3
27
17.2
17.2
21.0
4
115
73.2
73.2
94.3
5
9
5.7
5.7
100.0
157
100.0
100.0
Total
The customers also feel that the employees spend good enough time even after sales is
conducted.
Q7 c)
Spare parts availability
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
15
9.6
9.6
9.6
3
39
24.8
24.8
34.4
4
84
53.5
53.5
87.9
5
19
12.1
12.1
100.0
157
100.0
100.0
Total
53. Sales and Distribution for Tata Motors and Fiat in India
The customer has a mixed opinion to the availability of the spare parts at the service
center .But still the majority has a positive view to it that the spare parts are readily
available.
Q7d)
Is the Vehicle in good condition at the time of delivery
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
3
27
17.2
17.2
17.2
4
109
69.4
69.4
86.6
5
21
13.4
13.4
100.0
157
100.0
100.0
Total
The vehicle delivered at the time of ownership and after sales is presented in good
condition. Representation of anything is an important feature. It leaves a positive
impression on the customers.
Q7e)
Are the prices affordable
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
3
27
17.2
17.2
17.2
4
106
67.5
67.5
84.7
5
24
15.3
15.3
100.0
157
100.0
100.0
Total
54. Sales and Distribution for Tata Motors and Fiat in India
The prices of the service, spare parts are rendered affordable by the customers. It is an
important parameter because all the other companies charge high values on spare parts.
The customers become hesitant in getting their cars serviced at the authorized service
center. They rather look for cheaper options elsewhere.
Q7f)
Are there any attractive discounts offered
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
21
13.4
13.4
13.4
3
124
79.0
79.0
92.4
4
9
5.7
5.7
98.1
5
3
1.9
1.9
100.0
157
100.0
100.0
Total
This analysis states that there are less attractive discounts offered by the company. This
happens in a condition when a company is following low pricing strategy. The company
has not much scope to offer discounts. This sometimes can even go against you. There is
tendency among people to cherish the discounts that is offered to them. But in the long
run the strategy is beneficial.
Q7g)
Is the décor of the waiting area pleasing
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
51
32.5
32.5
32.5
3
88
56.1
56.1
88.5
4
15
9.6
9.6
98.1
5
3
1.9
1.9
100.0
55. Sales and Distribution for Tata Motors and Fiat in India
Is the décor of the waiting area pleasing
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
2
51
32.5
32.5
32.5
3
88
56.1
56.1
88.5
4
15
9.6
9.6
98.1
5
3
1.9
1.9
100.0
157
100.0
100.0
Total
This is the point that the company should improve on. The customers perceive the décor
of the waiting area not up to the standards. The company should give a serious thought on
improving this .After giving the car for service the customers wait for their cars in the
waiting lounge.
Q7h)
Is post sale follow ups done regularly
Frequency
Valid
Percent
Valid Percent
Cumulative Percent
1
3
1.9
1.9
1.9
2
9
5.7
5.7
7.6
3
45
28.7
28.7
36.3
4
97
61.8
61.8
98.1
5
3
1.9
1.9
100.0
157
100.0
100.0
Total
Post sales follow up is done on regular basis as seen from the analysis
Q7i)
Are the complaints responded quickly
56. Sales and Distribution for Tata Motors and Fiat in India
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
1
9
5.7
5.7
5.7
2
6
3.8
3.8
9.6
3
34
21.7
21.7
31.2
4
93
59.2
59.2
90.4
5
15
9.6
9.6
100.0
157
100.0
100.0
Total
The complaints are duly attended and responded quickly by the employees. The mean
value of the sample is 3.63 which is above average .
Q7 j)
Is the service at Tata Motors excellent
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
1
3
1.9
1.9
1.9
2
9
5.7
5.7
7.6
3
27
17.2
17.2
24.8
4
103
65.6
65.6
90.4
5
15
9.6
9.6
100.0
157
100.0
100.0
Total
When the vehicle is given for servicing, the customers feel that their vehicles have been
properly taken care of. All the complaints have been looked after. The mean value comes
to be 3.75
Q7k)
57. Sales and Distribution for Tata Motors and Fiat in India
Are all the commitments fulfilled
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
1
6
3.8
3.8
3.8
2
12
7.6
7.6
11.5
3
45
28.7
28.7
40.1
4
70
44.6
44.6
84.7
5
24
15.3
15.3
100.0
157
100.0
100.0
Total
The mean value is 3.6. Majority of the customers perceive that the commitments by the
company are fulfilled.
Q7 l)
Do you find the car value for money
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
2
6
3.8
3.8
3.8
3
24
15.3
15.3
19.1
4
97
61.8
61.8
80.9
5
30
19.1
19.1
100.0
157
100.0
100.0
Total
The customers‟ satisfaction is perceived by the parameter whether they find their car
value for money. If this is not the case then the customer is dissatisfied and does not
consider the car for re-buying. But this is not case with the cars of Tata motors, the
customers find the car value for money. The mean is 3.96
Q 8)
payment procedure preference
58. Sales and Distribution for Tata Motors and Fiat in India
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
cash
30
19.1
19.1
19.1
cheque
27
17.2
17.2
36.3
finance
100
63.7
63.7
100.0
Total
157
100.0
100.0
Most of the customers prefer purchasing a car by the method of finance. So the company
should have links with various finance companies at their respective dealership
showroom for the convenience of customers. The easy the method of financing, more
customers are attracted to the company than their competitors. It gives the company an
edge over its competitors.
Q 9)
59. Sales and Distribution for Tata Motors and Fiat in India
Are you aware of following facilities offered :Tata Motors Insurance
Cumulative
Frequency
Valid
yes
Valid Percent
Percent
151
96.2
96.2
96.2
6
3.8
3.8
100.0
157
100.0
100.0
no
Total
Percent
There are various extra facilities that are provided to the customers for extra benefits and
convenience. One of them is Tata Motors Insurance. It is a cashless insurance in which
during the time of claim, the customer does not have to pay cash and latter get it
reimbursed. The majority of the customers were aware of this facility which means that
sales force of the company is efficient .
Extended warranty
Cumulative
Frequency
Valid
YES
Percent
157
100.0
Valid Percent
100.0
Percent
100.0
Here a complete sample knew about the extended warranty facility offered by the
company which is a good sign.
True value
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
yes
133
84.7
84.7
84.7
no
24
15.3
15.3
100.0
157
100.0
100.0
Total
60. Sales and Distribution for Tata Motors and Fiat in India
This was the facility primarily started in the market by Maruti company. The customers
used to face various problems while selling off their cars. So to provide convenience to
the customers the true value concept came into existence. It was a one stop solution for
the customers to get the best value for their used cars. The customers have a confidence
that he will not be cheated. This adds to extra benefits offered by the company to keep the
customers. They give good exchange offers also if you purchase another car of the same
company. The majority of the customers knew about it.
Tata finance
Cumulative
Frequency
Valid
yes
Valid Percent
Percent
151
96.2
96.2
96.2
6
3.8
3.8
100.0
157
100.0
100.0
no
Total
Percent
The company also introduced the finance counter for the customers to avail car loans at
the dealership showroom. Everything is at customer‟s convenience. Customer does not
has to run here and there for getting the financing done. The customers were aware of it.
Autocard
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
yes
15
9.6
9.6
9.6
no
142
90.4
90.4
100.0
Total
157
100.0
100.0
It is a facility in which a customer get points for every 100 rupees spent with the
company . These points can later be redeemed. These are also applicable for various
61. Sales and Distribution for Tata Motors and Fiat in India
offers during the year. The customers were not aware about this facility of Tata Motors.
The company should make an extra effort to familiarize this facility to the customers.
Genuine accessories
Cumulative
Frequency
Valid
yes
Valid Percent
Percent
151
96.2
96.2
96.2
6
3.8
3.8
100.0
157
100.0
100.0
no
Total
Percent
The customers should use genuine accessories. There are many duplicate product that are
available in the market. People use them to save cost. But the customers be made aware
about the negative effects that these duplicate products have on the efficiency of the car.
These lead to early wear and tear. It can also prove fatal. The customers were aware of
the fact to use genuine accessories.
Q 10)
Overall opinion of tata motors
Cumulative
Frequency
Valid
very bad
Percent
Valid Percent
Percent
3
1.9
1.9
1.9
Bad
12
7.6
7.6
9.6
neither bad nor good
21
13.4
13.4
22.9
103
65.6
65.6
88.5
18
11.5
11.5
100.0
Good
very good
62. Sales and Distribution for Tata Motors and Fiat in India
Overall opinion of tata motors
Cumulative
Frequency
Valid
very bad
Percent
Valid Percent
Percent
3
1.9
1.9
1.9
Bad
12
7.6
7.6
9.6
neither bad nor good
21
13.4
13.4
22.9
103
65.6
65.6
88.5
18
11.5
11.5
100.0
157
100.0
100.0
Good
very good
Total
One-Sample Test
Test Value = 3
95% Confidence Interval of the
Difference
T
Overall opinion of Tata
11.729
df
Sig. (2-tailed)
156
.000
Mean Difference
.771
Lower
Upper
.64
motors
The mean value is 3.77. The opinion of customers on Tata motors is towards the positive
side. In t-test we have seen the mean difference to be .771. The customers are happy with
their car and have a good experience.
.90
63. Sales and Distribution for Tata Motors and Fiat in India
Q 11)
would you recommend tata motors to anybody else
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
Yes
127
80.9
80.9
80.9
No
21
13.4
13.4
94.3
9
5.7
5.7
100.0
157
100.0
100.0
Can't say
Total
Most of the customers are ready to take responsibility and recommend the cars to their
family and friends. This is the best method of advertisement i.e. the word of mouth. It
does not cost the company and is most influential. So having such customers is
advantageous to the company. The company should not loose such customers by
64. Sales and Distribution for Tata Motors and Fiat in India
dissatisfying them. The company has an advantage by having a great deal of these type of
customers.
Q 12)
Gender
Cumulative
Frequency
Valid
male
female
Total
Percent
Valid Percent
Percent
145
92.4
92.4
92.4
12
7.6
7.6
100.0
157
100.0
100.0
Most of the customers that come to the showroom are males. Even if the cars are being
bought for females, the males come on their behalf.
Q 13)
Age
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
18-25
36
22.9
22.9
22.9
26-35
67
42.7
42.7
65.6
36-50
48
30.6
30.6
96.2
6
3.8
3.8
100.0
157
100.0
100.0
Above 51
Total
65. Sales and Distribution for Tata Motors and Fiat in India
People of all age groups come to the showroom but the majority are
of age group 26-35 followed by 36-50 age group .
Q 14)
Income group (in lacs)
Cumulative
Frequency
Valid
Percent
Valid Percent
Percent
below 3
30
19.1
19.1
19.1
3-6
28
17.8
17.8
36.9
6-9
63
40.1
40.1
77.1
9-12
27
17.2
17.2
94.3
9
5.7
5.7
100.0
157
100.0
100.0
Above 12
Total
66. Sales and Distribution for Tata Motors and Fiat in India
People of all income groups come to purchase cars. It has become a necessity rather than
luxury. There are all segments of cars available according to the need.
gender * Which company's car do you possess Crosstabulation
Count
Which company's car do you
possess
Tata
gender
male
female
Total
Fiat
Total
100
45
145
4
8
12
104
53
157
67. Sales and Distribution for Tata Motors and Fiat in India
From this we can state that males prefer buying the car of Tata whereas female prefer
buying car of FIAT.
gender * What parameters do you seek in a car before buying Crosstabulation
Count
What parameters do you seek in a car before buying
brand popularity
gender
Male
Female
Total
performance
looks & style
Total
19
66
60
145
0
3
9
12
19
69
69
157
68. Sales and Distribution for Tata Motors and Fiat in India
Males look for performance as a parameter in their decision making to purchase cars
where as female prefer looks and style of the car as a parameter before purchasing.
gender * What parameter important for rebuying Crosstabulation
Count
What parameter important for rebuying
post sales
maintenance
service
gender
male
female
Total
mileage
cost
Total
37
65
43
145
6
3
3
12
43
68
46
157
69. Sales and Distribution for Tata Motors and Fiat in India
Males prefer mileage as a parameter for re-buying followed by maintenance cost and then
post sales service where as females look for post sales service as an important parameter
for making re-buying decision.
Which of the following best describes your line of work? * Which company's car do you
possess Crosstabulation
Count
Which company's car do you
possess
Tata
Which of the following best
Fiat
Total
6
36
business
32
34
66
17
10
27
Taxi services
Total
30
student
describes your line of work?
services
25
3
28
104
53
157
People of service class possess more of Tata cars than FIAT.
Customers from business class prefer FIAT cars over Tata.
Students also have an inclination towards Tata cars.
Taxi owners prefer Tata cars because of its mileage.
70. Sales and Distribution for Tata Motors and Fiat in India
Which of the following best describes your line of work? * What parameter important for rebuying
Crosstabulation
Count
What parameter important for rebuying
post sales
maintenance
service
Which of the following best
mileage
cost
Total
18
12
36
business
25
28
13
66
9
3
15
27
Taxi services
Total
6
student
describes your line of work?
services
3
19
6
28
43
68
46
157
71. Sales and Distribution for Tata Motors and Fiat in India
Customers of service class give more importance to mileage than maintenance cost
followed by post sales service.
Customers from business class have an almost equal weightage for mileage and post sales
service but mileage has an upper hand. The least important parameter as maintenance
cost.
In case of students, maintenance cost is the prime parameter followed by post sales
service and mileage.
In case of taxi, mileage plays an important role followed by maintenance cost.
72. Sales and Distribution for Tata Motors and Fiat in India
Age * What parameters do you seek in a car before buying Crosstabulation
Count
What parameters do you seek in a car before buying
brand popularity
Age
performance
looks & style
Total
18-25
0
6
30
36
26-35
7
33
27
67
36-50
12
27
9
48
0
3
3
6
19
69
69
157
Above 51
Total
Customers from the age group 18-25 goes for looks & style of the car for buying it.
From the age group 26 and above, they give more importance to performance of the car.
73. Sales and Distribution for Tata Motors and Fiat in India
Age * What parameter important for rebuying Crosstabulation
Count
What parameter important for rebuying
post sales service
Age
mileage
maintenance cost
Total
18-25
12
3
21
36
26-35
13
41
13
67
36-50
15
21
12
48
3
3
0
6
43
68
46
157
Above 51
Total
In making their re-purchase decision, customers from age group 18-25 give importance to
maintenance cost than post sales service and lastly to mileage.
74. Sales and Distribution for Tata Motors and Fiat in India
Where as all the customers from other age groups give preference to mileage in rebuying.
Which of the following best describes your line of work? * payment procedure preference
Crosstabulation
Count
payment procedure preference
cash
Which of the following best
cheque
finance
Total
6
0
30
36
business
24
27
15
66
student
0
0
27
27
Taxi services
describes your line of work?
services
0
0
28
28
30
27
100
157
Total
Customers from service sector, students and taxi service providers prefer finance as a
mode of payment for the purchase of cars. Where as business class prefer payment to be
made either by cash or cheque.
75. Sales and Distribution for Tata Motors and Fiat in India
Which company's car do you possess * Spare parts availability Crosstabulation
Count
Spare parts availability
2
Which company's car do you Tata
possess
Total
Fiat
3
4
5
Total
3
15
76
10
104
12
24
8
9
53
15
39
84
19
157
Customers of Tata have given higher rating to the availability of the spare parts than that
of FIAT. The spare parts of FIAT were not available at all times.
76. Sales and Distribution for Tata Motors and Fiat in India
Income group (in lacs) * payment procedure preference Crosstabulation
Count
payment procedure preference
cash
Income group (in lacs)
cheque
finance
Total
0
0
30
30
3-6
0
3
25
28
6-9
21
6
36
63
9-12
9
10
8
27
Above 12
Total
below 3
0
9
0
9
30
28
99
157
77. Sales and Distribution for Tata Motors and Fiat in India
Customers below the income of 3 lacs finance their vehicles. From 3-6 lacs also
customers go for financing scheme. In the group 6-9 lacs financing is still the majority
but a great deal of rise in cash mode of payment is seen. In 9-12 lacs cash and cheque
mode of payment is seen. Customers above the income group of 12 lacs prefer making
the payment by cheque and do not prefer financing their vehicles.
5. CONCLUSION & RECOMMENDATIONS
Fiat car is preferred more by females rather than males. Business class also has an
inclination towards Fiat more.
The décor of the waiting lounge is rated less by the customers, the company should
take measures to improve on it.
The availability of spare parts of Fiat cars is less whereas of Tata are readily
available. So the company should pay more attention to it.
Most of the customers purchase the cars by mode of financing. There are many
customers who after purchasing the cars are not able to pay EMI. So they are
considered defaulters. There are many such cases of defaulters. The finance
company has be vigilant as to who to give the consent or not.
There are many enquiries which are cold enquiries. The sales person has to make an
extra effort to convert the cold and warm enquiries to hot enquiries. Due to
negligence of sales man there are many loss of customers
Sales Man
78. Sales and Distribution for Tata Motors and Fiat in India
Should be well versed with the pay scale structure.
Incentive slabs should be formulated to endure them for more sales.
Sales man should be friendlier and solve the problems from both the consumer‟s and
company's point of view.
Should be motivated to open new outlets, keeping in mind the incentives being
provided on it.
Sales man should clear the schemes as soon as possible.
Should ensure that full product range is available with the ready stock.
Sale man should be energetic, be patients, quick decision maker, problems solver and
ready to do any kind of work related to his job profile.
Stockiest
To maintain more friendly relationship with the sales man and retailers.
Universal launch of scheme along with the arrangement with the company.
Should have enough of display material for the outlets.
Sales Executive
To attend to complaints/problems being recorded by sales man as soon as possible.
To maintain cordial relationship with the sales man.
Sales Executive should attend all key accounts and regular visit should be made every
week. He should also appreciate them for their good work.
Random /surprise checks to be made at the outlets to access the working of sales man
and whether the schemes are duty fully given to the retailers irrespective of the
category of the outlets.
To increase the coverage of outlets
1) The outlets, which have stopped purchasing from distributors due to any kind of
dispute between stockiest and the retailer, should be solved by the timely action of
sales executive.
2) The company should come out with suggestion Letter's that should be given on a
quarterly basis to all the retailer's and stockiest, so that the sales Executive handling a
particular belt is aware of the problems, grudges, grievances of the retailers. This will
79. Sales and Distribution for Tata Motors and Fiat in India
help him in taking timely action, which will save the matters from aggravating
further.
80. Sales and Distribution for Tata Motors and Fiat in India
5.2 REFLECTIONS ON WHAT HAS BEEN LEARNED DURING THE
INTERNSHIP EXPERIENCE
It was great opportunity for me to do my internship from TATA Motor.
I got a project which gave me the opportunity to meet the various people in the
corporate world. I could understand the working culture of corporate as well as
government offices. Before this I never visited such big organizations.
Making plan for the next day and finding the concern department and person allowed
me to increase my communication ability, written as well as verbal.
My confidence to meet people has tremendously gone up. Today I have that much
confidence that I can meet to any big person in any organization.
My boss also helped me very much to learn about corporate world. How to prepare
the proposals and how to give the company offer all I learnt from my boss.
I also attended the customer demonstration which gave me the knowledge about how
the customer can be convinced, how there queries are handled.
I also learnt very small-small things in the organization which is very necessary in
any flat organization like photocopying; Fax the document which I never know
before.
81. Sales and Distribution for Tata Motors and Fiat in India
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83. Sales and Distribution for Tata Motors and Fiat in India
ANNEXURE
Q.1)
Which of the following best describes your line of work :
a) Service
b) Business
c) Student
e) Taxi Services
Q.2)
What parameters do you seek in a car before buying
a) Brand Popularity
b) Performance
Q.3)
d) Housewife
c) Looks & Style
How long have you been associated with TATA Motors?
a) 0-1 Year
b) 1-3 Year
c) 3-5 Year
d) More than 5 yrs
Q.4) Which company‟s car do you possess?
a) Tata
b) Fiat
Q.5) If you need to buy a new or another car, would you again select the Tata or Fiat
Brand?
a) Yes
b) No
Q.6) What parameter is important for influencing your re-buying decision?
a) Post Sales services rendered by the company
b) Mileage of the car
c) Maintenance costs incurred
Q.7)
How would you rate TATA Motors on the following parameter?
i)
Are the sales person knowledgeable
ii)
Do the employees spend enough time with
you:
1
2
3
4
5
84. Sales and Distribution for Tata Motors and Fiat in India
Before sales
After sales
iii)
Are the spare parts available
iv)
Is the Vehicle in good condition at the time
of delivery
v)
Are the prices affordable
vi)
Are there any attractive discounts offered
vii)
Is the décor of the waiting area pleasing
viii)
Were you offered a test drive
ix)
Is post sale follow ups done regularly
x)
Are the complaints responded quickly
xi)
Is the service at Tata Motors excellent
xii)
Are all the commitments fulfilled
xiii)
Do you find the car value for money
Q.8)
What type of payment procedure do you prefer?
a) Cash
b) Cheque
c) Demand Draft
d) Finance
Q.9) Are you aware of the following facilities provided by Tata Motors?
i)
FACILITIES
Tata Motors insurance
ii)
iii)
iv)
v)
Extended warranty
True value
Tata finance
Auto card
Yes
No
85. Sales and Distribution for Tata Motors and Fiat in India
vi)
Genuine accessories
Q.10) What is your overall opinion about Tata Motors?
Very
Bad
1
Bad
Neither Bad
nor Good
3
2
Good
4
Very
Good
5
Q.11) Would you recommend Tata Motors to anybody else?
a) Yes
b) No
c) Cant say
Gender:
Male
Female
Age:
a) Below 18
Income group (in lakhs):
a) Below 3
b) e) Above 12
Name:
b) 18-25
c) 26-35
b) 3-6
c) 6-9
d) 36-50
e)51&above
d) 9-12
_____________________________
Contact no: ____________________________
Address:
____________________________________________________