Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
COMPARISON BETWEEN
MARKETING STRATEGIES OF
TATA MOTORS AND MAHINDRA & MAHINDRA
PREPARED BY:
SUPERVISOR:
CERTIFICATE
This is to certify that __ has completed his Project Report,as a part of partial fulfilment of
B.B.A. (General) Programme from Institute,affiliated to University, under my supervision and
guidance. He was in constant touch with me and the matter embodied in this is original and
authentic and same recommended for evaluation.
I wish him all the best in his entire future endeavour.
DR.ANITA SHARMA
(Reader MSI)
ACKNOWLEDGEMENT
Mahindra & Mahindra. I also thank her for the idea and basi concepts she delivered and
shared with me, as she helped me a lot in accomplishing this project of mine.
CONTENTS
Pg.no.
Chapter 1 Introduction................................................................................2-5
1.1. Objectives..2
1.2. Limitation2
1.3. Scope of the study..3
1.4. Research methodology3
BIBLIOGRAPHY
ANNEXURE
Chapter 1
INTRODUCTION
INTRODUCTION
1. In the 1st Chapter you will find the Objectives, Research Methodology and Limitations of
the study on comparison between marketing strategies of Tata Motors and Mahindra &
Mahindra.
2. In Chapter 2nd you will an overview of Tata Motors and Mahindra & Mahindra , in which
you will find S.W.O.T analysis of the both organizations.
3.
In the 3rd Chapter you will find Analysis and Interpretation on the project on Comparison
between marketing strategies of Tata Motors and Mahindra & Mahindra.
4. In 4th Chapter you will find Conclusions and Suggestions on the project on Comparison
between marketing strategies of Tata Motors and Mahindra & Mahindra.
5. In the end you will find the various sources I referred for gathering information.
1.1. OBJECTIVES
To understand the market potentiality for TATA cars and Mahindra cars.
To analyze the brand repositioning strategies of Tata cars and Mahindra cars.
1.2 LIMITATIONS
Some of the information was confidential so much information was not revealed.
1. From the research analysis we can find that, whats a person first look in a dream car?
2. The study can be used to know the perception of consumer about Tata & Mahindra.
3. The present study can be extended to access the present marketing condition of Indian
automobile sector.
4. The study can be used to design a proper product, price, place and promotional strategy
for the market.
5. From the present study we can know the market share of different products and
accordingly formulated strategy to enhance it.
1.4 RESEARCH METHODOLOGY
The purpose of methodology is to describe the process involved in research work. This includes
the overall research design, data collection method, the field survey and the analysis of data.
SOURCE OF DATA COLLECTION:
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
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
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. Gaya 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 50.
9
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 co-operative. 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
10
Chapter 2
COMPANY PROFILE
11
OF THE ORGANIZATION
TATA MOTORS LIMITEDTata Motors Limited is India's largest automobile company, with
consolidated revenues of Rs.70, 938.85 crores (USD 14 billion) in 2008-09. 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 4 million
Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's
manufacturing base in India is
12
13
Ukraine, Russia, Senegal and South Africa. The foundation of the company's growth over the
last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to
translate them into customer-desired offerings through leading edge R&D. With over 3,000
engineers and scientists, the company's Engineering Research Centre, established in 1966, has
enabled piohneering technologies and products. The company today has R&D centers in Pune,
Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata
Motors, which developed the first indigenously developed Light Commercial Vehicle, India's
first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger
car. Within two years of launch, Tata Indica became India's largest selling car in its segment. In
2005, Tata Motors created a new segment by launching the Tata Ace, India's first indigenously
developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and te
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100, 000 (excluding VAT and
transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India
today. The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
14
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.
Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. . It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation
Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company's support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative health care. The goal of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies in our vehicles and operations for constantly enhancing environment
care. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
15
Taking advantage of the broad banding policy announced by the Government of India, the
Company entered into a collaboration agreement with Honda Motor Co. Ltd., Japan,
manufacture of their `ACCORD' model of cars in India. On 22nd April, an agreement was
entered into between Daimler-Benz AG and Mercedes Benz AG, Germany to setup a joint
venture company Mercedez-Benz India to manufacture `E' class paneyer cans and engines in
India.
During the year 1995 a new double pick-up and Army Version of various Telco Vehicles were
developed. A new petro engine and turbo diesel engine, an up-graded 709 LCV, new sports utility
vehicle Safari expected to be launched shortly. A 25 tonne 6 X 2 truck and a bus with cummins
engine were launched.
Tata Engineering and Locomotive Company (TELCO), has acquired a second hand paint shop,
machine line and cylinders from the Australian unit of the Japanese auto giant, Nissan. TELCO is
believed to have picked up the unit for Rs. 70 crore. The total cost of import duty would be Rs
100 crore. During the year a machine tool division was expanded so as to double its machine
building capacity and significantly reduce production times.
The Company has launched "TATA SAFARI" in its Multi utility vehicle segment. Tata Holset's
turbo charger plant inaugurated on November 25, 1996.
In 1997, the Tata Engineering and Locomotive Company Ltd. (TELCO) have emerged as
numerous uno in the Review 200 survey conducted by the Far Eastern Economic Review in
association with Citi Bank. The Company introduced a 9-tonne vehicle which was well received
in the market. A 40 tonne tractor trailer powered by a Tata Cummins Engineering was
introduced. The Company developed a low floor bus chassis to meet the specific needs of urban
transport. The Company signed a new agreement with Hitachi for manufacture of upgraded
versions of existing range of excavators.
The year 1998- Tata Engineering and Locomotive Company Ltd (Telco) announced a tie-up with
Tata Finance Ltd and ANZ Grindlays Banks as the official financiers for its small car "Indica" to
be launched in December. Tata Engineering Locomotive Company Ltd (Telco) sold its
17
construction equipment business into a new subsidiary company, Telco Construction Equipment
Company Ltd. The Company in its small car segment has launched "Tata Indica" which evoked
an overwhelming response in the Indian market. A new range of cummins engine powered
vehicle which include a 35 tonne and a 40 tonne articulated truck and two variants of buses.
To make substantial improvement in the quality of bus bodies available with TATA vehicles, the
Company encouraged collaboration between Fuji Heavy Industries of Japan and the Automobile
Corporation of Goa. The new project undertakes production of bodies on TATA chassis,
conforming to the most exacting international standards. Concorde Motors Ltd., a Joint Venture
between Tata Engineering and Jardine International Motors (Mauritius) Ltd. was appointed as
dealer for the Company's passenger cars in several cities across the country, in Feb 1998.
The year 1999-Telco became the first Indian manufacturer to offer commercial vehicles meeting
euro-I emission norms, a year before they are due to be introduced in the country. It is proposed
to make TCECL a one-stop shop for construction equipment and earthmoving machinery. In Oct
1999, the Company won the National award for R&D Efforts in Development of Indigenous
Technology in the Mechanical Engineering Industries Sector instituted by Department of
Scientific and Industrial Research, Ministry of Science and Technology for the year 1999. SKF
Bearings India Ltd has signed an agreement with Telco to supply hub bearings for its latest
model
Tata Indica.
2000 saw the Company working towards introducing two new petrol-driven variants of its small
car Indica, powered by a multi-point fuel injection engine. The Company launched the Indica
2000, the Euro II Complaint, 75 BHP multi-point fuel injection (MPFI) version of Indica. The
Company has won the National Technology Award for indigenous development and
commercialization of the Tata Indica car. The Company has launched its new hi-tech Indica
2000 car with MPFI petro engine in Guwahati.
18
Tata Engineering & Locomotive Co. is renamed as Tata Engineering Ltd. It replaced its threeshift production line with a one-shift daily schedule starting from 26th June. In the same year
FICCI-SEDF- Business world-Compaq award for social responsiveness was awarded to the
company. The Central Pollution Control Board for Environmental Technology award has been
presented to Tata Engineering in recognition of its contribution towards efforts to conserve the
environment. TATA Engineering on September 10 announced the addition of MPFI petrol
version to the Indica V2 range.
In year 2002 Foreign Institutional Investors (FII) hike stake in the company to 13.34% launches
six new products in light, medium and heavy vehicles segments on Jan 15 during Auto Expo.
Announces financial restructuring. Displays its Tata Sedan car at the Geneva Motor Show. Indica
adjudged top selling B-segment car in 2002.Launches two new motorsport cars (The Zero and
Double Zero Pace cars). High Court Approves Tata Engineering's Financial Restructuring. Tata
Engg, BPCL tie up to market co-branded lubricants.Tata Steel's investment in Tata Engineering
has been hiked to Rs 117.98 crore over the last year. Telco names Sedan as Tata Indigo.Unveils
'EX' series of medium and heavy commercial vehicles. Indica sales cross two-lakh mark
.Collaborates with Nippon-Arcelor for technical knowhow on CR steel. Receives Teri's (The
Energy and Resources Institute) CoRE-BCSD (Corporate roundtable on development of
strategies for sustainable development and environment-business council for sustainable
development) corporate social responsibility (CSR) awards for '01-02. Unleashes Safari's petrol
version; priced at Rs 9.35 lakh.
The year 2003- Tata Unveils CityRover .Tata Motors Ltd signed a binding Memorandum of
Understanding (MoU) with Deawoo Commercial Vehicle Company Ltd (DWCV), Korea for the
acquisition of this company. It introduces Tata SFC 407 EX Turbo Light Commercial Vehicle
(LCV). The Company changed from 'TELCO ' to 'TATAMOTORS' w.e.f December 24, 2003. In
the same year Tata Safari ranks No 1 in MUV/SUV segment.
2004:- The year of glory. Tata Motors launch an upgraded version Indica on January 15, 2004, in
a bid to shore up sales of the small car.
Auto Expo: Tata unveils new version of Indica. Tata Motors unveils Indica V2. Tata Motors
19
launches new Indica V2 in Kerala. Tata Motors introduces new 'Indicab' for tour operators. The
much hyped Rs one lakh passenger car project of Tata Motors was going ahead as planned. Tata
Motors enters agreement with Ukraine bus building firm. Tata Motors enters into agreement with
Etalon. In a move to consolidate its presence in the light commercial vehicles segment, Tata
Motors has launched a new variant of its 407 series with increased pay load capacity called SFC
407EX. Tata Motors buys Daewoo truck unit for Rs 465 crore. Tata Motors unveils Tata SFC 407
EX. Tata Motors inks agreement with Austrian, French companies. Acquires Daewoo
Commercial Vehicle Company Ltd (DWCV), Korea. Tata Motors launches most anticipated new
6-tn truck in India.
The Tata TL
20
A Tata Starbus
Commercial vehicles
Tata Ace
Tata 709 Ex
Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger
transportation)
Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Military vehicles
Tata 407 Troop Carrier, available in hard top, soft top, 44, and 42 versions
Electric vehicles
Tata Motors has unveiled electric versions of the Tata Indica passenger car and the Tata Ace
commercial vehicle, both of which run on lithium batteries.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of Norway for
US$1.93 million, which specialises in the development of innovative solutions for electric
vehicles, and plans to launch the electric Indica hatchback in Europe next year.In September
2010, Tata Motors presented four CNGElectric Hybrid low-floored Starbuses to the Delhi
Transport Corporation, to be used during the Commonwealth games. These were the first
environmentally friendly buses to be used for public transportation in India.
23
It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India Study
2014]It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011.
History
Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed After
India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan. The
company changed its name to Mahindra & Mahindra in 1948.It eventually saw business
opportunity in expanding into manufacturing and selling larger MUVs, starting with assembly
under licence of the Willys Jeep in India. Soon established as the Jeep manufacturers of India,
the company later commenced manufacturing light commercial vehicles (LCVs) and agricultural
tractors. Today, Mahindra & Mahindra is a key player in the utility vehicle manufacturing and
branding sectors in the Indian automobile industry with its flagship UV Scorpio and uses India's
growing global market presence in both the automotive and farming industries to push its
products in other countries.
Over the past few years, the company has taken interest in new industries and in foreign markets.
They entered the two-wheeler industry by taking over Kinetic Motors in India.M&M also has
controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor
Company in 2011.In the 2010-11 M&M entered in micro dripp irrigation with the takeover of
EPC Industrie' Ltd, Nashik.
Operations
Automobiles
Automotive
Mahindra & Mahindra Limited
25
Mahindra Scorpio
Mahindra Bolero
26
Mahindra Quanto
Mahindra Axe
Mahindra Thar
27
Mahindra Xylo
Mahindra Verito
Mahindra & Mahindra, branded on its products usually as 'Mahindra', produces SUVs, saloon
cars, pickups, commercial vehicles, and two wheeled motorcycles and tractors. It owns assembly
plants in India, Mainland China (PRC), the United Kingdom, and has three assembly plants in
the United States. Mahindra maintains business relations with foreign companies like Renault
SA, France.
M&M has a global presenceand its products are exported to several countries. Its global
subsidiaries include Mahindra Europe S.r.l. based in Italy, Mahindra USA Inc., Mahindra South
Africa and Mahindra (China) Tractor Co. Ltd.Mahindra started making passenger vehicles firstly
with the Logan in April 2007 under the Mahindra Renault joint venture. M&M will make its
maiden entry into the heavy trucks segment with Mahindra Navistar, the joint venture with
International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers. It
manufactures over 20 models of cars including larger, multi-utility vehicles like the Scorpio and
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the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build
passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive
product expansion program that would see the launch of several new platforms and vehicles over
the next three years, including an entry-level SUV designed to seat five passengers and powered
by a small turbodiesel engine. True to their word, Mahindra & Mahindra launched the Mahindra
Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 units.
Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of
the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon
followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus,
include Scorpio Pik Ups in single and double cab pick-up body styles as well as SUVs.
Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North
America through an independent distributor, Global Vehicles USA, based in Alpharetta,
Georgia.Mahindra announced it will import pickup trucks from India in knockdown kit (CKD)
form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the
U.S. from kits of parts shipped in crates. On 18 October 2010, however, it was reported that
Mahindra had indefinitely delayed the launch of vehicles into the North American market, citing
legal issues between it and Global Vehicles after Mahindra retracted its contract with Global
Vehicles earlier in 2010, due to a decision to sell the vehicles directly to consumers instead of
through Global Vehicles.However, a November 2010 report quoted John Perez, the CEO of
Global Vehicles USA, as estimating that he expects Mahindras small diesel pickups to go on
sale in the U.S. by spring 2011, although legal complications remain, and Perez, while hopeful,
admits that arbitration could take more than a year. Later reports suggest that the delays may be
due to an Mahindra scrapping the original model of the truck and replacing it with an upgraded
one before selling them to Americans In June 2012, a mass tort lawsuit was filed against
Mahindra by its American dealers, alleging the company of conspiracy and fraud.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In 2011, it
also gained a controlling stake in South Korea's SsangYong Motor Company.
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Mahindra has launched its relatively heavily publicised SUV, XUV 500, code named as W201 in
September 2011. The new SUV by Mahindra has been designed in-house and it is developed on
the first global SUV platform that could be used for developing more SUVs. In India, the new
Mahindra XUV 500 comes in a price range between Rs 11.40 lakh to Rs 15 lakh. Besides India,
the company also targets Europe, Africa, Australia and Latin America for this model. Mahindra
President Mr Pawan Goenka stated that the company plans to launch six new models this fiscal.
The company launched CNG version of its mini truck Maxximo on 29 June 2012. A new version
of Verito in diesel and petrol options was launched by the company on 26 July 2012 to compete
with Maruti's Dzire and Toyota Kirloskar Motor's Etios.
Military Defence
The company has built and assembled military vehicles, commencing in 1947 with the
importation of the Willys Jeep that had been widely used in World War II. Its line of military
vehicles include the Axe. It also maintains a joint venture with BAE Systems, Defence Land
Systems India.
Energy
Mahindra & Mahindra entered the energy sector in 2002, in response to growing demands for
increased electric power in India.
Since then, more than 150,000 Mahindra Powerol engines and diesel generator sets (gensets)
have been installed in India, offering standard proper quality power, as do most larger
companies, in areas with arguably less reliable grid electricity. The inverters, batteries, and
gensets are manufactured at three facilities in Pune (Maharastra), Chennai (Tamil Nadu), and
Delhi; and 160 service points across India offer 24-7 support to most key markets. Powerol is
present in countries across Latin America, Africa, the Middle East, and Southeast Asiaand
expanding into the United Arab Emirates, Bangladesh, and Nepal.Mahindra Powerol's energy
services consist mostly of power leasing and telecom infrastructure management. In 2006, it
became a major market leader in the telecom segment (and in 2011, its market share passed 45
percent). In 2007, it won the Frost and Sullivan "Voice of the Customer" award for best practices
in telecom.
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Farm equipment
Mahindra began manufacturing tractors for the Indian market during the early '60s. It is the top
tractor company in the world (by volume) with annual sales totaling more than 200,000 tractors.
Since its inception, the company has sold over 2.1 million tractors.Mahindra & Mahindras farm
equipment division (Mahindra Tractors) has over 1,000 dealers servicing approx. 1.45 million
customers.
Mahindra tractors are available in 40 countries, including India, the United States, China,
Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and
Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America, and the
Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and
Eastern Europe (Serbia, Turkey, and Macedonia.]Mahindra Tractors manufactures its products at
four plants in India, two in Mainland China, three in the United States, and one in Australia. It
31
has three major subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and Mahindra
Yueda (Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).
In 2003, the Farm Equipment Sector of Mahindra & Mahindra won the Deming Application
Prize and in 2007 it received the Japan Quality Medal for implementing Total Quality
Management in its entire business operations. The company has garnered the highest customer
satisfaction index (CSI) in the industry at 88 percent. It earned a 2008 Golden Peacock Award in
the Innovative Product/Services category for its in-house development of a load car. In its 2009
survey of Asias 200 most admired and innovative companies, the Wall Street Journal named
Mahindra & Mahindra one of the 10 most innovative Indian companies.
In addition to tractors, Mahindra sells other farm equipment. It has expanded its product-line to
include farm-support services via Mahindra AppliTrac (farm mechanisation products), Mahindra
ShubhLabh (seeds, crop protection, and market linkages and distribution), and the Samriddhi
Initiative (farm counselling and information services).
Automotive models
Mahindra CJ500D
Mahindra MM540DP
Mahindra Armada
Mahindra Commander
Mahindra Marshal
Mahindra Majar
Mahindra Legend
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Mahindra Thar
Mahindra Invader
Mahindra Bolero
Mahindra Xylo
Mahindra Verito
Mahindra XUV500
Mahindra Rexton
Mahindra Rodeo RZ
Mahindra Duro DZ
Mahindra Centuro
Mahindra Pantero
Mahindra Flyte
Mahindra Kine
Mahindra Phanthom
Mahindra Quanto
Mahindra VeritoVibe
33
Mahindra Maxximo
Mahindra Navistar
Employees
As on 31 March 2013, the company had 34,612 employees, out of which 699 were women (2%).
It also had around 16,000 temporary employees on the same date.
The Brand Trust Report ranked M&M as India's 10th Most Trusted Brand in its India
Study 2014 survey (from 20,000 brands analyzed).
Its Farm Equipment division received the Japan Quality Medal in 2007.
The US based Reputation Institute ranked M&M amongst the top Ten Indian companies
in its 'Global 200: The World's Best Corporate Reputations' list for 2008.
Bluebytes News rated M&M as India's second Most Reputed Car Company (reported in
their study titled Reputation Benchmark Study) conducted for the Auto (Cars) Sector in
2012.
34
Mahindra Rise
Type
Traded as
Public
BSE: 500520
BSE SENSEX Constituent
Industry
Automotive
Founded
1945 (Ludhiana)
Worldwide
Key people
35
Products
Revenue
Net income
Total assets
Employees
34,612 (Mar-2013)
Parent
Mahindra Group
Subsidiaries
36
37
market
38
1. Developing hybrid cars and fuel efficient cars for the future
2.Tapping emerging markets across the world and building a
global
brand
3.Fast
growing
automobile
market
Ever
Intense
increasing
competition
from
fuel
global
automobile
prices
brands
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
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.
Tata Motors R&D in Europe: - Deepening its engagement with the European R&D
space, in September 2005, Tata Motors set up the Tata Motors European Technical
40
Centre, a 100 per cent subsidiary, in the UK. It is engaged in design engineering and
development of products for the automotive industry. Working synergistically,
TMETC provides the company with design engineering support and development
services, complementing and strengthening the companys skill sets and providing
European standards of delivery to the companys passenger vehicles.
The internationalization 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
example after the Daewoo acquisition the Indian company leaned work discipline
and how to get the final product 'right first time.
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 maruti-suzuki so, it
need to tap this section also.
The CV segment is becoming highly competitive by new player like Volvo,and rival
M &M are coming with new products to cater the TATA in the market as the rural
area has given thumps up to M&M during this year.
41
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?
26
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.
Replacement of aging four wheelers-One of very important reason where the car
industry and commercial vehicle can take advantage in coming days.
Increasing dispensable income of rural agri sector-Somehow this year the rural
demand was very enthusiastic than the urban market which drive the auto industry so, the
development of rural infrastructure and condition will create handsome demand from the
rural area.
42
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.
Increasing disposable income with the service sector-As the consumers have money in
their hand definitely there will be demand from their side so, this is also very good
opportunity for this sector.
Graduating from two wheeler to four wheeler-The dream of NANO will boost
demand for four wheeler in the auto industry.
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.
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 globalizes
and buys into other brands this problem could be alleviated.
43
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
competitive pressures.
Shifts in the exchange rates affecting profits and cost of raw materials.
Predictions of a downturn in the economy e.g. recession, will affect car purchases
(especially new cars). As household budgets tighten - this could lead a decline in new car
across Europe.
Rising oil prices (fuel costs) and the costs of maintaining cars. Increase in families who
have chosen not to own a car, or decided to use their car less.
44
Chapter 3
DATA ANALYSIS
INTERPRETATION
45
40
10
MAHINDRA
25
46
TATA
15
(ii) DISSATISFIED
20
5
INFERENCE:
47
80% of the Respondents were satisfied with their cars and the services of
MAHINDRA
However 20 % of the Respondents were dissatisfied at the same time.
PRINT MEDIA
T.V.
INTERNET
13
DEALERS
PRINT MEDIA
T.V.
55%
13%
INTERNET
INFERENCE:
Information through Internet and Print media accounts for more than half or 75%
of the information shared with the masses.
Rest 25% was shared by T.V. and Dealers for providing the information.
48
19
NO
78%
22%
YES
NO
INFERENCE:
78% of the respondents felt that TATA has the most fuel efficiency.
While 22% felt it isnt the most fuel efficient.
49
GOOD
17
VERY GOOD
NOT SO GOOD
SATISFACTORY
FEATURES OF TATA
12%
8%
10%
70%
GOOD
VERY GOOD
NOT SO GOOD
SATISFACTORY
INFERENCE:
70% of the respondents felt that the features of the TATA are good.
While 8% of respondents thought it was not so good, 10% thought it was very good
and 12% felt satisfactory about the features.
HANDLING
FUEL EFFICIENCY
DESIGN
COMFORT
40
29%
30
18%
15%
20
10
0
HANDLING
FUEL
EFFICIENCY
DESIGN
COMFORT
INFERENCE:
TATA is best known for its design & comfort.
Then comes Handling and Fuel Efficiency.
6.HOW DO YOU FIND THE INTERIORS OF YOUR CAR ?
(I)GOOD
(iii)SATISFACTORY
GOOD
18
VERY GOOD
SATISFACTORY
NOT SO GOOD
51
INTERIORS OF TATA
7%
3%
GOOD
16%
VERY GOOD
NOT SO GOOD
SATISFACTORY
74%
INFERENCE:
The interiors of TATA are very good according to 74% of the respondents.
16% said it was very good, 7% said it was satisfactory and 3% felt it was not so
good.
18
52
13%
MAKE IT MORE
AFFORDABLE
15%
72%
CHEAPER SPARE
PARTS
MORE SERVICE
STATIONS
INFERENCE:
If TATA is made more affordable then it would win more customers, a
theory which was backed by 72% of the respondents.
15% and 13% respectively want cheaper spare parts and more service
stations.
15
53
15
MAKE IT MORE
SPORTY
10
GIVE IT A RETRO
LOOK
60
15
GIVE IT A
CONCEPT CAR
LOOK
INFERENCE:
To make it the best car in its class it should be made more futuristic which
was felt by 60% of the respondents.
15% of the respondents thought it should be made more sporty.
10% wanted it to have a retro look and 15% wanted to give it a concept car
look.
HAPPY
UNHAPPY
(ii) UNHAPPY
21
4
54
15%
HAPPY
UNHAPPY
85%
INFERENCE:
Overall 85% happy with the after sales service provided by TATA.
15% were unhappy with TATA due to poor after sales services provided by
them.
YES
NO
(II)
NO
23
2
55
INFERENCE:
Overall 90% says yes.
10% say no.
11.YOURS CAR PARTS ARE AVAILABLE AT VERY REASONABLE PRICE?
56
(I) YES
(II) NO
YES
NO
20
5
INFERENCE:
Overall 80% says yes.
20% say no.
YES
NO
(II) NO
15
10
57
INFERENCE:
Overall 60% says yes.
40% say no.
(ii) MAHINDRA
TATA
MAHINDRA
3
22
INFERENCE:
Overall 90% says MAHINDRA.
10% say TATA
58
HAPPY
20
UNHAPPY
INFERENCE:
Overall 80% are happy.
(i)SATISFIED
(ii) DISSATISFIED
SATISFIED
DISSATISFIED
12
3
INFERENCE:
83% of the Respondents were satisfied with their cars and the services of
MAHINDRA
However 17% of the Respondents were dissatisfied at the same time.
2.WHERE
DO YOU
MANAGE TO FIND
DEALERS
PRINT MEDIA
T.V.
3
60
INTERNET
DEALERS
20%
PRINT MEDIA
T.V.
55%
INTERNET
13%
INFERENCE:
Information through Internet and Print media accounts for more than half or 75%
of the information shared with the masses.
Rest 25% was shared by T.V. and Dealers for providing the information.
3.DO YOU THINK YOUR CAR HAS THE MOST FUEL EFFICIENCY ?
(I)YES
(ii) NO
YES
12
NO
61
FUEL EFFICIENCY OF
100
80
60
40
20
0
MAHINDRA
78%
22%
YES
NO
INFERENCE:
78% of the respondents felt that Toyota has the most fuel efficiency.
While 22% felt it isnt the most fuel efficient.
GOOD
10
VERY GOOD
NOT SO GOOD
SATISFACTORY
62
FEATURES OF MAHINDRA
12%
8%
GOOD
VERY GOOD
NOT SO GOOD
SATISFACTORY
10%
70%
INFERENCE:
70% of the respondents felt that the features of the MAHINDRA are good.
While 8% of respondents thought it was not so good, 10% thought it was very good
and 12% felt satisfactory about the features.
HANDLING
FUEL EFFICIENCY
DESIGN
COMFORT
63
40
29%
30
18%
15%
20
10
0
HANDLING
FUEL
EFFICIENCY
DESIGN
COMFORT
INFERENCE:
Toyota is best known for its design & comfort.
Then comes Handling and Fuel Efficiency.
GOOD
11
VERY GOOD
SATISFACTORY
NOT SO GOOD
64
INTERIORS OF MAHINDRA
7%
3%
GOOD
16%
VERY GOOD
NOT SO GOOD
SATISFACTORY
74%
INFERENCE:
The interiors of MAHINDRA are very good according to 74% of the respondents.
16% said it was very good, 7% said it was satisfactory and 3% felt it was not so
good.
10
65
13%
MAKE IT MORE
AFFORDABLE
15%
72%
CHEAPER SPARE
PARTS
MORE SERVICE
STATIONS
INFERENCE:
If Toyota is made more affordable then it would win more customers, a
theory which was backed by 72% of the respondents.
15% and 13% respectively want cheaper spare parts and more service
stations.
66
15
MAKE IT MORE
SPORTY
10
GIVE IT A RETRO
LOOK
60
15
GIVE IT A
CONCEPT CAR
LOOK
INFERENCE:
To make it the best car in its class it should be made more futuristic which
was felt by 60% of the respondents.
15% of the respondents thought it should be made more sporty.
10% wanted it to have a retro look and 15% wanted to give it a concept car
look.
(ii) UNHAPPY
67
HAPPY
UNHAPPY
13
2
15%
HAPPY
UNHAPPY
85%
INFERENCE:
Overall 85% happy with the after sales service provided by Toyota.
15% were unhappy with MAHINDRA due to poor after sales services
provided by them.
YES
NO
(II)
NO
12
3
68
INFERENCE:
Overall 80% says yes.
20% say no.
(II) NO
YES
NO
6
9
69
INFERENCE:
Overall 40% says yes.
60% say no.
(II) NO
5
10
70
INFERENCE:
Overall 30% says yes.
70% say no.
MAHINDRA
TATA
(ii) TATA
13
2
71
INFERENCE:
UNHAPPY
INFERENCE:
Overall 80% are happy.
20% are unhappy.
72
Chapter 4
73
CONCLUSIONS AND
RECOMMENDATIO
N
CONCLUSIONS
Tata Motors is number three in passenger car market after maruti-suzuki & hyundai.
TATA motors ltd always offer test drive to every customer and discount offer.
According to sample tata motors are providing better safety than other cars manufacture.
Majority of sample think that price of Tatas car parts are not available everywhere, and it
is costly than other car parts
Out of the samples, people are highly convinced that TATA MOTORS will yield them
better results
Customers were educated by me, about fuel efficient cars by Tata Motors.
Making the decision to capture the rural market. by introducing tata nano is giving better
result.
Both Tata and Mahindra should conduct market survey in Indian market for quails in
order to know the perception of Indian consumers.
Mahindra should adopt an offensive marketing strategy for entering in the small car
segment. This market is dominated by Maruti Suzuki and Hyundai in the Indian domestic
auto market.
future models and also allowed people to design their own cars.
As part of making the companys dealer outlets more appealing to young buyers,
the
It focused on streamlining and reducing its workforce and decided to hire contract
75
RCOMMENDATIONS
1. Tata Motors should improve its after sale services.
2. MAHINDRA should spend more on advertisement.
3. Tata Motors should open more service stations.
4. Mahindra should launch more models of SsangYong in India.
5. Tata Motors should provide spare parts at more reasonable rates.
6. Improving the marketing Strategies
7. More test drives should be offered by both the companies.
BIBLIOGRAPHY
BOOKS
76
Shiffman L.G. & Kanuk L.L. Consumer Behavior (8th Edition) PHI, Delhi,
1994
The motor show magazine (2014)
Carzone magazine (2014)
NDTV auto expo 2013 report.
INTERNET
www.tata.com
www.tatamotors.com
http://www.mahindra.com/What-We-Do/Automotive
www.carwale.com
http://www.tatamotors.com/our_world/press_releases.php?ID=500&action=Pull
www.thehindubusinessline.com
ANNEXURE
(ii) DISSATISFIED
(ii) UNHAPPY
(ii) NO
78
IMPROVE YOUR
CAR COMPANY ?
(I) MAKE IT MORE AFFORDABLE
(ii) CHEAPER SPARE PARTS
(iii)MORE SERVICE STATIONS
11. ACCORDING TO YOU WHAT SHOULD BE DONE TO MAKE MAHINDRA OR
TATA THE BEST CAR?
(I)MAKE IT MORE FUTURISTIC
(ii)MAKE IT MORE SPORTY
(iii)GIVE IT A RETRO LOOK
(iv)GIVE IT A CONCEPT CAR LOOK
12. ARE YOU HAPPY WITH THE AFTER SALES SERVICES PROVIDED ?
(I)HAPPY
(ii) UNHAPPY
(II) NO
(II)
NO
(II) NO
79
80