PROJECT REPORT

Sales Strategy and Market Development plan for improving market

share of Tata Motors Ltd in LCV-pickups segment in Vijayawada/Guntur
area

Submitted by

Pavan Kumar Kallakuri

Enrollment No: 17A2020229

Post Graduate Diploma in Management (Executive)

Area of Specialization: Marketing

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 ACKNOWLEDGEMENT
The satiation and euphoria that accompany the successful completion of the project

would be incomplete without the mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude to

my corporate mentor Mr. Venkata Ramana Yellapu. I am greatly indebted to him for

providing his valuable guidance at all stages of the study, advice, constructive suggestions,

positive and supportive attitude and continuous encouragement, without which it would

have not been possible to complete the project. I would also like to thank Mr. Praveen

Kamalakar, who in spite of busy schedule has co-operated with me continuously and

indeed, his valuable contribution and guidance have been certainly indispensable for my

project work.

I owe my wholehearted thanks and appreciation to the entire staff of the company for

their cooperation and assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and make a

valuable contribution towards this industry in coming future.

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 Table of Contents

Chapter No. Topic Page No.

1 Executive Summary 5

2 Introduction and Need of the Study 6

3 Organization Background 8

4 Literary Review 23

5 Competitor Analysis 28

6 Research Methodology 31

7 Data Analysis 34

8 Conclusions and Limitations 41

9 Market Development Plan and 42

Recommendations

10 References 50

11 Annexures 51

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 Chapter1

Executive Summary

The project was started on 10th of April 2018 after knowing all the relevant information

related to Commercial Vehicles manufacturing industry, under the guidance of Mr. Venkata

Ramana Yellapu (Sr. Manager Marketing& Sales). The first part of my project involves the study

of the LCV pickup customers of Guntur and Vijayawada region, then identification of their

problem and helping them to increase the sale. For this I used the method of personal

interviews and questionnaires.

To complete my project, I have started with visiting the major transporters in the

market of Vijayawada and Guntur from whom I have gathered the information related to the

vehicle operating routes, driver and owner’s expectations from the product and the rules and

regulations from the local road Transport Authorities. For an in-depth study on the vehicle

performance parameters and the operating styles and economics I have visited 43 customers in

the Guntur and Krishna Districts. I have selected the customers mix based on the models that

they are using and the application for which they are transporting the loads. During the visits

made to these existing customers, I have also received the new prospects for sale.

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 Chapter 2

Introduction

Need of the Study

This project was an attempt to know the reasons behind the low sale of LCV pickups of

Tata Motors Ltd in Vijayawada/Guntur regions. Despite of being a renowned brand i.e. Tata

Motors Ltd., the sale picture in Vijayawada/Guntur region is very bleak due to stiff competitors

like Eicher, Swaraj Mazda, and Mahindra etc. There is a need to revamp the company and

position it all over again in the mind of the customer.

In doing so firstly Brand must be positioned competitively in the market, creating more

awareness among the potential customers. Secondly a study on customer’s decision making

factors is required to understand their priorities which can be worked upon. For this purpose, a

research has to be undertaken to find out the market scenario.

With the help of the responses given by the customers and data analysis thereby, the

company will be able to understand its strengths, weakness, opportunities and threats. The

survey report submitted by me will assist the company to take right decisions to increase the

turnover and market share.

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Objective of the study

The objectives of the study are the following: -

The main objective of this project is to probe the reasons behind small market share of TML and

to find out the measures that can be adopted to increase the sales.

➢ To study the latest trends in light commercial vehicles transportation.

➢ To identify the issues related to the LCV Pickups.

➢ To get the feedback from current customers of ours and competition.

➢ To add up new customers.

➢ To study TML positioning in the mind of the consumers vis-à-vis competitors.

➢ To find out the factors that affect customer’s decision to purchase LCV Pickups.

➢ Suggesting viable recommendations to be implemented in the area

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 Chapter 3

Organizational Background

Tata Motors Limited (TML) is an Indian multinational automotive manufacturing

company, headquartered in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group.

Tata Motors Limited, is a USD 42 billion organization, and is one of the world’s leading global

automobile manufacturer with a portfolio that covers a wide range of cars, sports vehicles,

buses, trucks and defense vehicles. TML’s marquee can be found on and off-road in over 175

countries around the globe. Tata Motors is a part of the Tata Sons group which was founded by

Jamshedji Nusserwanji Tata in 1868, it has a net worth of $ 100 billion. Sustainability and the

spirit of ‘giving back to society’ are the core philosophies and good corporate citizenship is

strongly embedded in Tata Groups’ DNA. Tata promises to bring its customers a legacy of

proven leadership with respect to customer-centricity and technology. Tata is driving the

transformation of the Indian commercial vehicle landscape by offering customers leading edge

auto technologies, packaged for power performances and lowest life-cycle costs. Tata motor

designs its vehicles for Performance, Superior comfort, Reliability, & Connectivity.

Tata Motors is also the world’s fourth largest bus manufacturer. Tata Motor’s Limited had

consolidated total revenue of USD 42.8 billion in the financial year of 2017-18. Tata Motors has

been performing exceedingly well in commercial Vehicle segment and is the crown holder in

the Commercial Vehicles Segment in India as well. The Passenger Vehicles segment has Tata

Motors as one of the top players. Tata is also an award winner in compact, midsize car and

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utility vehicle segments as well. Tata motors is present in across 175 countries. It also has

assembly operations based in U.K, Thailand, South Africa, South Korea and Indonesia. Tata

Motor’s also has franchise/joint venture assembly operations based in Bangladesh, Ukraine and

Senegal.

Tata Motors is very well known for its innovations, such as India’s first six wheeled truck

‘Tata 1613’, first Light Commercial Vehicle ‘Tata 407’, first small commercial vehicle ‘Tata Ace’.

Tata is also known for manufacturing India’s first sports utility vehicle (SUV) ‘Tata Safari’ which

is the most dominant among utility vehicles. Tata also released India’s first fully indigenous

passenger car ‘Tata Indica’, and has created new segments in passenger cars such as Compact

Sedan Tata Zest and Tigor, world’s most affordable car Tata Nano, and cross-over Tata Hexa. In

commercial vehicles range Tata Motors has a huge product range starting from a 0.6-ton small

commercial vehicle to a 49-ton Heavy vehicle and from a 5-seater passenger vehicle to 40

seater bus. Tata Motor’s also has its operations based out of U.K, South Korea, Thailand, South

Africa and Indonesia. Tata Motors commercial vehicles and passenger vehicles are already

being marketed throughout Europe, Africa, the Middle East, South East Asia, South America, CIS

and Russia.

Tata Motors already has and still is investing heavily into R&D to keep up with the

modernizing and birth of high technology products. Its Engineering research division was

established in 1996. It consists of about 4,500 engineers, scientists and technicians. Today Tata

Motors has R&D centers in Pune, Jamshedpur, Lucknow and Dharwad in India, as well as in

South Korea, Italy, Spain and U.K.

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 Tata Motors was listed on the New York stock exchange in September of 2004 and hence

Tata Motors has emerged as an international automobile company. Tata Motors also has

subsidiaries and associate companies. Some of which such as Jaguar, Land Rover are very

prominent acquisitions. Tata Motors also formed a 51:49 joint venture with Brazil based Marco

polo which is already a global leader for bodybuilding of buses and coaches. The Marco polo

plant is in Dharwad. In 2004, Tata Motor’s has acquisitions like Daewoo commercial vehicles

Company, South Korea’s 2nd largest truck maker.

TML also has keen interest in developing environmental friendly technologies in

emissions and alternative fuels because of which electric and hybrid vehicles both for personal

and public transportation have evolved. TML has won the first Indian government electric cars

order of 3000 units in FY17-18. TML is committed to improving the quality of life of

communities by working on four thrust areas – employability, education, health and

environment.

Tata Motors has its manufacturing facilities across India for manufacturing different

segment of vehicles. The following are various plant locations across states.

Jharkhand  Jamshedpur Medium & Heavy Commercial Vehicles

Uttarpradesh  Lucknow  Buses and other special Commercial Vehicles

Karnataka  Dharwad  Buses and Small commercial vehicles

Uttarakhand  Pantnagar  Small Commercial vehicles passenger and cargo

Maharastra  Pune  Light Commercial vehicles and Passenger Cars

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 Gujarat  Sanand  Nano, Tiago and Tigor range of passenger cars

Mission of Tata Motors Ltd:

Tata Motor’s mission is to innovate mobility solutions with passion to enhance the quality of life

Vision of Tata Motors Ltd:

As a high-performance organization, they are, by FY2019 to be

➢ Among the top three in global CV and domestic PV

➢ Achieving sustainable financial performance

➢ Delivering exciting innovations

Key Values of Tata Motors Ltd:

➢ Integrity

➢ Teamwork

➢ Accountability

➢ Customer focus

➢ Excellence

➢ Speed

In the automobile sector, there are different vehicles available for different applications

starting from small scale passenger vehicles to large scale commercial vehicles. Thus, depending

on the application, Tata motors has divided its automobile business into two different business

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units. One is Passenger Vehicle Business Unit and the other is Commercial Vehicle Business

Unit.

These business units have been further classified into different classes depending upon

the requirement of the customer. Line of business of Tata motors is clearly described in the

hierarchy shown.

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Hierarchy of Tata Motors:

Executive Hierarchy:

Mr. Chandrasekharan
(Chairman Tata Sons
and Tata group of
Companies)

Mr. Guenter Butschek

(Managing Director
Tata Motors Ltd)

Mr. Girish Wagh Mr. Mayank Parekh

Executive Director Tata Executive Director
Motors CVBU PVBU

Office Hierarchy:

Head Quarters Regional Office

Mumbai East Kolkata

Regional Office
Regional Office Regional Office
South
North Delhi West Mumbai
Bangalore

Area Sales
Offices

Dealer 1 Dealer 2

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 The Channel partners i.e. the Dealers report to Area Office. All the Area Offices are

required to report to the Regional Office of their respective regions. A state can have any

number of Area Offices. As a final call, all the Region Offices will have to report to the Head

Quarters which is in Mumbai. All these offices will support each other for a better performance.

Connecting Aspirations is a key Initiative that is taken by Tata Motors Limited. It is based

on the philosophy “best in class offerings”. Connecting aspirations is a merge of unmatched

global styling, aesthetics with enhanced comfort and productivity, there by pushing the

performance further. It’s basically a customer focused strategy to provide the best customer

experience with best vehicle experience. This strategy has four pillars; they are as follows:

• Intense Product Focused

• Focus on World Class Manufacturing

• Enriched Customer Purchase Experience and

• Consistent Quality Service

In the current Scenario, the thirst for knowledge is exponentially increasing and so is the

competition. Thus, every company is entering into each and every segment possible to sustain

the competition. Every company is trying to take advantage of other company’s product by

finding out the weakness and pitch itself and that’s exactly how the Tata’s are bringing new

products into existence. Tata Motors mainly has three divisions i.e. Economic, Popular and

Premium models in all of its product lines. They make sure that they have a product to tap

customers of all segments.

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 “The purpose of business is to create a customer and keep a customer” and to do so

continuous innovation of the existing as well as new product should take place. Customers

must be created depending on the application of the Product. Once a customer is created,

sustaining him is a very difficult Task which should be done very tactically. In an industry like

Automobiles once a wrong step is taken, competition grabs your market and it takes many

years to get back to your own platform. This whole concept is more like a race in which only

companies who believe in continuous innovation and follow it will continue to stay in the race,

the rest will give up after reaching a saturation point.

This is exactly how a company fights, strives hard to stay in the race and at the gains a

huge market shares there by becoming a market leader. The race does not end once the needs

of customer are satisfied, then marketing and Selling comes into picture. Marketing is process

which starts from making the customer aware about your product to making the customer

purchase it. Selling is a part of marketing.

While selling a product, one should also keep in mind the benefits that are offered by the

competition. This process is termed as competitive selling. In the process of competitive selling

it is very important to

• Know your company

• Know your competition

• Know basics of the product and

• Know your principle

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Competitive selling consists of the following steps:

1. Taking appointment/ meeting the customer: Time is the very precious for everyone,

once spent you can’t repent later. So is the case with a both the customer and sales

person. So, meeting a customer at right time and in right place becomes very important.

It is proved through many surveys that meeting customer after taking an appointment

will fetch better results. Without any prior intimation, the customer will be least

bothered to make time for a sales person/marketer.

2. Preparing: Preparation is required to crack any exam. For a sales person meeting the

customer is treating equal to an exam. Thus, preparation is the most essential tool for

success. Understanding the customer’s nature of business will also help in creating a

brand image in thee customers mind. In fact, this exercise must be done before meeting

the customer. One also should know the weakness of the competition so that he can

pitch his product accordingly.

3. Creating Interest: The most critical part of a sale lies in creating interest about the

product in the mind of the customer. “Why would any customer want to talk to a sales

person wasting his personal time?” is the base question which needs to be answered in

any sales call. A customer would tend to show interest only if he thinks he would gain

some additional advantage in investing his valuable time on you. A sale persons

dressing, behavior, etiquette also matter in this stage.

4. Understanding: Analyzing the most important and preferred need of the customer takes

place in this stage. If done on priority basis the result would be more effective. This will

help him crack the deal.

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5. Presenting: Basing on the needs of the customer, the sales person should present the

product. How much you explain does not matter, how well you explain matters. It is not

a compulsion that one should explain all the specifications of the product to a customer.

It is necessary to explain the points which are of most high priority to the customer

which can create a difference to him. This will help in creating more interest about the

product in the mind of the customer.

6. Communicating Business Value: After understanding the touch points of the customer

and presenting them to him, communicating the benefit he fetches from the product is

very much essential. The customer has the right to know if he is spending on the

product is worthy or not. It is the sales person’s responsibility to communicate the

value. It is obvious that the customer purchases a product for adding value to his

existing business communicating the business is very essential.

7. Handling Objections: It’s quite natural that objections would be raised by the customer

while executing a deal. Handling these objections is the responsibility of a sales person.

Closing of a deal depends on the smartness of the Sales person. Objections can be of

two types. They are as follows

a. Non-Price Objections: Non-Price Objections are the ones in which the customer

may have objections regarding the specifications of the product. The customer

might complain that the other company is offering a much better feature in the

product so the sales person needs to handle these situations by making the

customer aware of his need and how good the product exactly fits to his

requirement

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 b. Price objections: Price objections are the ones in which the customer might

directly say that the product is costlier than that of the competition. In such

cases the perception that good things come at expensive prices should be used.

8. Negotiating: Negotiations will be basically done with the customer basing on his price

objections. Immense care must be taken that the customer is satisfied with the final

price so that he does not spread a negative word of mouth.

9. Assisting Finance: In case of products with higher initial investment, the marketer

should provide the customer with various financing options. The role of bankers will

come in this stage.

10. Taking Order: In this stage details like delivery time, delivery place, quantity and the

type of delivery are jotted down by consulting the customer. Later a follow up also has

to be done to check if the customer has received the product according to his

requirements.

11. Delivering: In this stage, the customer’s order is delivered to him with great care. Care

should be taken that defected product or due to transportation the product gets

damaged as this again will lead to dissatisfaction and negative word of mouth.

12. Post-Sale Follow-Up: The responsibility of a sales person does not end by completion of

selling and delivering. Post purchase support should be provided to the customer every

now and then. Experiencing such follow up the customer gets satisfied to a great extent.

It is very difficult to bring in a new customer, so practices such as Post sale follow up will

help in sustain an existing customer Thus, after sale support will lead to build a strong

relationship between the customer and the sales person. Post-sale follow up will also

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 fetch a positive word of mouth and will build good brand Image. Executing the twelve

steps of competitive selling properly will help in converting a customer who is in

prospect stage to final stage. Hence understanding the Sales process is very essential.

Sales Process of Tata Motors:

Tata Motors Limited has designed a Sales process especially for their company. It consists of

four steps which are as follows

• C0 - Prospect customers

• C1 - Interested towards our brand, taken the quotation

• C2 - Customer who gives financial commitment and

• C3 – Retail customer

C0 - Prospect customers: This is the initial stage in the sales process. In this stage one should

accumulate the maximum number of potential customers available for the product sales person

is going to sell. Care also should be taken about the Pricing i.e. if the potential customers

created could afford the product or no and if the product suits the customer’s application. All

the customers interested in a similar product tend to fall under the C0 category, irrespective of

their brand preference. Grabbing the customers’ interest towards our product is not a very easy

task. A sales person might even end up meeting a person who is least interested about our

product, but the responsibility lies in the hands of the sales person to create the interest.

Customers who own a Tata vehicle but have not purchased in the last three years or the

competitor’s customers who are planning to buy a new vehicle can come under C0. As per the

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requirement, application the sales person has to suggest the customer a suitable vehicle.

Suggestion of the vehicle also depends on lead, load factors that are used by the customer in

his business. Lead is the average daily distance the customer covers for this business and Load

is the load on an average that the customer transports for his business

C1 - Interested towards our brand: Customers who show interest in purchasing our brands

product come under C1.C1 is a filtered list of C0.C1 includes the customers who generally walk

up to the store of dealer to collect the quotation of the vehicle of their choice. Quotation is the

estimated cost of the vehicle. It also has break ups such as ex-showroom price, insurance, etc.

in detail. Customer asking for the Quotation does not necessarily have to signify that he’s

interested in our product as he has a lot of choices to opt for. The reason behind a customer

asking for a quotation might be to compare it with the quotation of other brands available in

the market. So, it becomes very important for a sales person to clearly explain the advantages

of his product. The number of customers converted from C0 to C1 are considerably few as al

the potential customers might not be interested in purchasing the product.

C2 - Customer who gives financial commitment: Here, in this stage the customer gives the sales

person the guarantee of purchasing the product. Booking the vehicle by paying some advance

or by submitting the papers for the Loan to get sanctioned signify guarantee is given. The deal is

almost at the final call in this stage. As the deal is almost is in its final stage the customer would

be delighted if provided with external support such as financing. In some case lack of external

support may also lead to losing of a deal. Almost all the customers who have reached C2 stage

will experience C3 stage as they have already given some sort of guarantee.

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 C3 - Retail customer: In this stage, the product finally reaches the customer. Deal will be

closed as soon the product is delivered to the customer. This stage brings a difference to the

sales figures. Responsibility of the sales person does not end here; he also should provide post

sales follow up. Thus, larger is the number of C0 created, greater will be the chance for

converting into C3. There by sale of the product can be increased.

Porter’s Five Force Model for Tata Motors:

Threat of
Substitute

Bargaining Industry Bargaining

power of power of
Customers Rivalry suppliers

Threat of
new
entrants

1. Industry Rivalry: There are more than 30 major players in the automobile industry, so

among huge competition it’s not an easy task for Tata Motors Limited to be a market

leader. TML is almost into all automobile sectors possible, so it is obvious to have neck

to neck competition as some companies are limited to one segment only. In commercial

vehicle segment TML is facing tough competition from Ashok Leyland, Mahindra, Bharat

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 Benz, and in passenger vehicle segment from Mahindra, Hyundai, Maruti Suzuki etc.

High competition in the industry makes it difficult to make large profits. Hence volume

and market share holds the key.

2. Threats of new entrants: The Automobile industry has big players which have

established themselves. It has taken decades for them to achieve economies of scale

through a learning curve. Reaching Breakeven itself is challenging, hence threat to new

entrant is very low. Even if a new company enters the market it would hardly pose a

threat to TML on account of its brand image and sleek positioning.

3. Threats of substitutes: Customer loyalty is hard to find now a day, because they have

the power to choose. Automobile sector is no different. Manufacturers like Ashok

Leyland and Mahindra in CVBU are making similar products. Key aspects like price,

discount, financier, technical specifications and comfort play a big role in making

purchasing decisions. So, yes, threat of substitute is worrisome.

4. Bargaining Power of Suppliers: TML doesn’t face any kind of problem in this context as

the Tata owns a steel plant and raw materials are sourced from it. Thus, the supplier

belonging to same family makes bargaining easier.

5. Bargaining power of Buyers: Yes, bargaining power of buyers is high. This is primarily

due to the presence of substitutes. But, owing to a good brand image, customers

sometimes do tend to not pursue bargaining aggressively.

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 Chapter 4

Literature Review

Commercial Vehicles

A commercial vehicle is any type of motor vehicle used for transporting goods or paying

passengers. These vehicles are classified majorly based on the capacity of their tonnage.

Commercial Vehicle Terminologies:

1. Curb Weight / Unladen Weight: This is the weight of the vehicle without goods, including fuel

and the other standard accessories.

2. Payload: This is the maximum permissible weight of the goods which are meant to be

transported in the vehicle. This includes the weight of the driver and the crew/co-driver as

applicable based on the vehicle’s design.

3. Gross Vehicular Weight: This is the sum of the unladen weight and the payload.

4. Wheel base: This is the distance between the centers of the front and the rear wheels

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5. Front Overhang: This is the distance from the center of the front wheel to the end of the front

bumper.

6. Rear Overhang: This is the distance from the center of the rear wheel to the rear bumper.

7. Ground clearance: This is the distance from the lowest part of the vehicle to the ground.

8. Angle of approach: This is the maximum angle of a ramp onto which a vehicle can climb from a

horizontal plane without interference.

9. Angle of departure: This is the maximum ramp angle from which the car can descend without

damage.

10. Turning Circle Radius: This is the smallest circle in which a vehicle makes the turn. This is

measured in meters(m)

11. Gradeability: This is the highest grade a vehicle can ascend while maintaining a particular speed.

12. Power: Power is the rate at which the work is done. Engine power is captured at the fly-wheel

before transmitting into the gear box and tyres.

13. Engine torque: This is the force by which the engine rotates the flywheel wheels at an axis.

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Classification of Commercial Vehicles

SCV – The commercial vehicles with a GVW ranging from 0.5tons to 3.5tons

LCV – The commercial vehicles with a GVW ranging from 3.5tons to 7.5tons

LCV Pickups – The commercial vehicles with a GVW ranging from 3.5tons to 5tons are called as LCV

Pickups

ICV – The commercial vehicles with a GVW ranging from 7.5tons to 16.2tons

MCV – The commercial vehicles with a GVW ranging from 16.2tons to 25tons

HCV – The commercial vehicles with a GVW ranging from 25tons to 49tons

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Evolution of LCV business in India

Light Commercial Vehicles in India started from the year 1958 with the establishment of

new manufacturing companies with a technology collaboration from the foreign major

automobile giants from Japan and Germany. Allwyn-Nissan, DCM-Toyota, Mitsubishi, Bajaj-

Tempo were some of the companies which have introduced the LCV product range in the India.

In the year 1986, Tata Motors Ltd. has introduced the first LCV product Tata 407 which was a

complete Indian built vehicle.

LCV Industry Overview in the Krishna and Guntur region

LCV Industry in Krishna and Guntur is on a growth trend for the past three financial

years. The total industry volume (TIV) has grown across all the years.

FY Tata SML MM Eicher TIV MS

17-18 119 21 14 147 301 39.5%

16-17 107 16 13 49 185 58%

15-16 92 12 11 39 154 60%

Tata – Annual Sales volumes of Tata

SML – Annual sales volumes of Swaraj Mazda Ltd

MM – Annual sales volumes of Mahindra and Mahindra Ltd

Eicher – Annual sales volumes of Eicher

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MS – Market share of Tata Motors Ltd

Major LCV Growth Drivers

Hub &
Spoke
Model

Small scale Infra

Industries growth

LCV
Industry
Drivers
Emergence
Fuel Prices of smart
cities

Intracity
Transporta
tion

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 Chapter 5

Competitor Analysis

LCV Pickups are the vehicles which has the loading capacity like an LCV and a

performance as that of a small commercial vehicle. All the major LCV industry players have a

LCV pickup model in their CV range.

Tata Motors Ltd: Tata Motors’ LCV Pickup is branded with the legacy of 407 and it is named as

SFC 407 Pickup. This product is launched in the year 2012 and since its inception, it is well

accepted in the market by all customer groups.

Swaraj Mazda Ltd: SML LCV pickup is called by the model name SML 5252XM. This model was

introduced in the year 2014 and since its launch it has been visible in the areas where SML has a

network point but never been a threat to TML.

Mahindra and Mahindra: M&M has MM DI3200 under its LCV Pickup range. This was

introduced in the year 2012 and has been consistently being sold in some niche applications but

never has beaten TML’s volumes.

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Volvo Eicher Commercial Vehicles Ltd: Eicher has launched its LCV pickup in the year 2015 and

since its inception, it is well accepted by many customer groups and has started becoming a

threat to TML.

Technical Comparison of the LCV Pickup Products

METRICS TATA SFC407 PU Swaraj 5252XM Eicher Pro 10.49 Mahindra DI 3200

Power (85HP)@2800 r/min 101 HP @ 2800 rpm 95 HP @ 2600 RPM 70 HP@3200r/min

250 Nm@1400 -2400 300 Nm @ 1600-1800

Torque r/min 296 Nm @ 1500 rpm RPM 200 Nm@1800-2200
Payload (kgs) 2200 2770 2700
Loading
area(Ft) (lxb) 8.3 Ft X6.6 Ft 9.2Ft X 6.1Ft 10 FtX 6 Ft 10.2 Ft X 5.11 Ft

Tyre size 7.00R 16 -12PR 7.00 X 16 -14 PR 7.00 X 16 - 16PR 7.00R 16 -14PR
Clutch Size
(mm) 280 260 275 240
Manual(Power
Steering Manual Manual Manual option)

Grade-ability 28% 33% 29% 26%

Semi elliptical leaf Semi elliptical leaf Semi elliptical leaf
spring and Hydraulic spring and Hydraulic spring and Hydraulic
Suspension Semi elliptical leaf
double acting double acting double acting
(Front/ Rear) springs
telescopic type Shock telescopic type Shock telescopic type Shock
Absorber Absorber Absorber
Ground
clearance 223 190 230 190
(mm)
TDC (Mtrs) 11.9 10.1 11.2 11.5
GVW (KG) 4450 5220 4995 4600
Top speed 80- BS4 (Restricted
120 100 80
(KMPH) through SLF)

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Product Specification Analysis

Power: Tata SFC407Pickup has lower engine power compared to Eicher and SML.

Torque: Tata SFC407 Pickup has a lower torque compared to other competitors

Load body: Tata SFC407 pickup has a wider load body which gives better stability for the vehicle

in turnings and also a better road grip.

GVW and Payload: Tata SFC407 Pickup has a lower GVW and Payload rating.

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 Chapter 6

Research Methodology

Purpose

The basic purpose of this research is to probe the reasons behind small market share of

TML and to find out the measures that can be adopted to increase the sales

Problem

Despite of being a renowned brand i.e. TML, the sale picture in Vijayawada/Guntur

region is very bleak due to stiff competitors like Eicher, Swaraj Mazda, and Mahindra etc. There

is a need to revamp the company and position it all over again in the mind of the customer.

Objectives of the study

1. The objective of the study is to analyze various factors affecting LCV purchase and to

find out primary factors which are critical by customer before buying any brand LCV.

2. To study the reasons for the shift of the loyal Tata customers to other brands

3. To study the major segments of LCV and observe performance of the key buying factors

Research Methodology

We have adopted the Causal Research methodology for this project. Causal Research

explores the effect of one thing on another and more specifically, the effect of one variable on

another. The research is used to measure what impact a specific change will have on existing

31
norms and allow market researchers to predict hypothetical scenarios upon which a company

can base its business plan. We have used the Causal research to find out the parameters that

affecting LCV Pickups purchase.

Survey

Surveys are systematic ways of gathering the information from a large number of

people. Surveys can be administered by mail, telephone, in person and online. We have used in

person surveys to collect data from various profile of customers who buys and operates LCV

pickups.

Questionnaire

Questionnaire is the data collection device. This is simply a formalized set of questions

for eliciting the information.

Likert scale questions indicate a degree of agree or disagreement with each of a series

of statements related to the attitude object. Close ended questions limit respondents with a list

of answer choices from which they must choose to answer the question.

Commonly these type of questions are in the form of multiple choices, either with one

answer or with check-all-that-apply, but also can be in scale format, where respondent should

decide to rate the situation in along the scale continuum. We have used close ended questions

and the Likert scale questions to determine the performance attributes of the vehicle,

consideration factors of the customers while purchasing the product.

32
Sampling Frame

A Sampling frame consists of a list of item from which the sample is to be drawn. The

sample frame for this research constitutes the customers, who are fleet operators, individual

driver cum owners, captive industries and organizations who use the LCV pickups for their

business needs.

Sample Size

The sample size of the research was 43 individuals from the districts of Krishna and

Guntur.

33
 Chapter 7

Data Analysis
Vehicle Performance Parameters Analysis

The following parameters were collected from the customer under the Likert scale

ratings.

1. Driver Comfort

2. Mileage

3. Pickup and Turnaround time

4. Over load Capability

5. Spares availability

6. Service Down Time

7. Ghat road pickup

8. Narrow road maneurability

Rating Scale

Ratings were collected on a 1 to 5 scale.

1. Very Poor

2. Poor

3. Satisfactory

4. Good

5. Excellent

34
 All the data collected from the customers of different make of vehicles were plotted on

the graphs and are shown below application wise.

Vehicle performance rating - Fruits Application

6.00
5.00
4.00
3.00
2.00
1.00
0.00
Driver Mileage Pickup and Over load Spares Service Down Ghat road Narrow road
Comfort Turn around Capability availability Time pickup maneurability
time

Fruits Eicher Fruits SML Fruits MM Fruits Tata

Observations: Tata LCV vehicles performance in fruit segment is meeting the expectations in

Mileage, Ghat Road pickup, Overload capability and spares availability.

Vehicle Performance rating - Parcel Application

6.00
5.00
4.00
3.00
2.00
1.00
0.00
Driver Mileage Pickup and Over load Spares Service Down Ghat road Narrow road
Comfort Turn around Capability availability Time pickup maneurability
time

Parcel Eicher Parcel SML Parcel MM Parcel Tata

Observations: Tata LCV vehicles performance in Parcel segment is meeting the expectations in

Mileage, Ghat Road pickup, Overload capability and spares availability

35
 Vehicle Performance rating - Aqua application
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Driver Mileage Pickup and Over load Spares Service Down Ghat road Narrow road
Comfort Turn around Capability availability Time pickup maneurability
time

Aqua Eicher Aqua SML Aqua MM Aqua Tata

Observations: Tata LCV vehicles performance in Aqua segment is meeting the expectations in

Mileage, Service down time, Ghat-road pickup, Overload capability and spares availability

Vehicle performance rating - Market load application

6.00
5.00
4.00
3.00
2.00
1.00
0.00
Driver Mileage Pickup and Over load Spares Service Down Ghat road Narrow road
Comfort Turn around Capability availability Time pickup maneurability
time

Market Load Eicher Market Load SML Market Load MM Market Load Tata

Observations: Tata LCV vehicles performance in Market load segment is meeting the

expectations in Mileage, Ghat Road pickup, Service down time, Overload capability and spares

availability

36
 The details of the current vehicle and earlier vehicle used are collected. The main

reasons for the change of brand or model of the vehicle are captured with the help of a

questionnaire which has the below choices from which the selection has to be made.

List of Major reasons from which the choice is made

1. Performance advantage

2. Spares and Service issues

3. Commercial benefit at the time of purchase

Observations

1. In fruits segment, 80% of the customers shifted from Tata to Eicher due to the

performance advantage and 20% to M&M due to the commercial benefit

2. In Parcel segment, all the customers using Tata were retained and bought Tata again

due to the performance advantage

3. In Aqua segment, all the customers have shifted from Tata due to the performance

advantage. 75% shifted to eicher due to the performance advantage, 12% due to the

spares and service issues shifted to Eicher and 12% shifted to SML due to commercial

benefit

4. In market load only 10% of the customers have shifted from Tata to eicher due to the

commercial benefit and all the other were retained and taken Tata again due to the

performance advantage.

37
The below parameters are collected from the customers and their earning pattern is studied.

1. Trip Distance (To & Fro)

2. Avg. Trips per month and Total Kms in a month

3. Average Mileage in kmpl

4. Earning per Trip

5. Total Diesel Consumed per month

6. Diesel Cost per month

7. Maintenance Cost per Km

8. On road Cost of the Vehicle

9. Finance Funding at 80%

10. EMI with Tenure of 48 months

11. Total Earning per month

12. Expenses per month

13. Profit Per month

38
 The below graphs depict the average profit per month by the customers using each

different brand in a particular application.

Customer's Avg. profit in Fruit

application
60000
50000
40000
30000
20000 Profit Per month inRs.
10000
0
-10000 Fruits Fruits Fruits Fruits

-20000 Eicher SML M&M Tata

Observation: In fruits application, Eicher customers are making good profit and in the second

place is the SML.

Customer's Avg. profit in Parcel

Application
40000
35000
30000
25000
20000
15000 Profit Per month inRs.
10000
5000
0
Parcel Parcel Parcel Parcel
Eicher M&M SML Tata

39
Observation: In Parcel application, Tata’s customers are making the highest profit and then are

the Eicher customers.

Customer's Avg. profit in Aqua

application in Rs.
185000
180000
175000
170000
165000
160000
155000
Profit Per month inRs.
150000
145000
140000
135000
Aqua Aqua
Eicher Tata

Observation: In Aqua application, eicher customers are having better profits than Tata’s

customers.

Customer's Avg. profit in Market load

application
60000
50000
40000
30000
20000 Profit Per month inRs.
10000
0
Market Load Market Load
Eicher Tata

Observation: Tata customers have a huge earning in Market load application.

40
 Chapter8

Conclusions and Limitations

With all the customer analysis, it is evident that Tata’s customers are getting retained in

some applications where the vehicle is operated for a better mileage, overload capability and

low maintenance costs. On the other side, many customers are shifting towards Eicher where

they are getting an advantage in the number of trips in the same period compared to Tata.

Perishable goods such as fruits, aqua etc. are the main applications where initial pickup of the

vehicle is most preferred compared to mileage than overload capability. Also, is the fact that

Tata’s vehicles are not preferred into narrow lanes due to its wider cabin. SML and M&M are

also considered by some customers but they are not retaining to those brands because of the

poor after sales service support and the spares availability.

This survey has some limitations as this survey was majorly conducted in two districts of

Andhra Pradesh i.e. in Krishna and Guntur. The applications such as fruits and aqua are based

on the seasons and dependent on the factors such as the crop yield and market price and

demand based segments. The requirement of vehicles in these applications may be in a huge

demand and can go down drastically. Similarly, the vehicles which are taken for transporting

these can also become idle without loads and business which may lead to shrink in the

earnings. These vehicles cannot be deployed to another routes or applications as the revenues

may not suit.

41
 Chapter 9

Market development plan and Recommendations

BCG Matrix

BCG matrix is a growth share matrix chart that was created by Bruce D. Henderson for

the Boston Consulting Group in 1970 to help corporations to analyze their business units, that

is, their product lines. This helps the company allocate resources and is used as an analytical

tool in brand marketing, product management, strategic management, and portfolio analysis.

Some analysis of market performance by firms using its principles has called its usefulness into

question.

42
Cash cows

This is where a company has high market share in a slow-growing industry. These units

typically generate cash more than the amount of cash needed to maintain the business. They

are regarded as staid and boring, in a "mature" market, yet corporations value owning them

due to their cash-generating qualities. They are to be "milked" continuously with as little

investment as possible, since such investment would be wasted in an industry with low growth.

Dogs

These are more charitably called pets, are units with low market share in a mature,

slow-growing industry. These units typically "break even", generating barely enough cash to

maintain the business's market share. Though owning a break-even unit provides the social

benefit of providing jobs and possible synergies that assist other business units, from an

accounting point of view such a unit is worthless, not generating cash for the company. They

depress a profitable company's return on assets ratio, used by many investors to judge how

well a company is being managed. Dogs, it is thought, should be sold off.

Question marks

These (also known as problem children or Wild cats) are businesses operating with a low

market share in a high-growth market. They are a starting point for most businesses. Question

marks have a potential to gain market share and become stars, and eventually cash cows when

market growth slows. If question marks do not succeed in becoming a market leader, then after

perhaps years of cash consumption, they will degenerate into dogs when market growth

43
declines. Question marks must be analyzed carefully to determine whether they are worth the

investment required to grow market share.

Stars

These are units with a high market share in a fast-growing industry. They are graduated

question marks with a market- or niche-leading trajectory, for example: amongst market share

front-runners in a high-growth sector, and/or having a monopolistic or increasingly dominant

unique selling proposition with burgeoning/fortuitous proposition drive(s). The hope is that

stars become next cash cows. Stars require high funding to fight competitors and maintain their

growth rate. When industry growth slows, if they remain a niche leader or are amongst the

market leaders, stars become cash cows; otherwise, they become dogs due to low relative

market share. As a particular industry matures and its growth slows, all business units become

either cash cows or dogs. The natural cycle for most business units is that they start as question

marks, and then turn into stars. Eventually, the market stops growing; thus, the business unit

becomes a cash cow. At the end of the cycle, the cash cow turns into a dog.

In the current market scenario of Krishna and Guntur districts, the position of Tata

Motors reached to the Cash cows stage and from there in the recent past it has dropped to the

stage of Stars again. Even though the volumes are continuing there is a further threat that it

may go to the position of Question marks.

44
SWOT

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person

or organization identify the Strengths, Weaknesses, Opportunities, and Threats related to

business competition or project planning. It is intended to specify the objectives of the business

venture or project and identify the internal and external factors that are favorable and

unfavorable to achieving those objectives. Users of a SWOT analysis often ask and answer

questions to generate meaningful information for each category to make the tool useful and

identify their competitive advantage. Strengths and Weakness are frequently internally-related,

while Opportunities and Threats commonly focus on environmental placement.

Strengths: These are the characteristics of the business or project that give it an advantage over

others.

Weaknesses: These are the characteristics of the business that place the business or project at

a disadvantage relative to others.

Opportunities: These are the elements in the environment that the business or project could

exploit to its advantage.

Threats: These are the elements in the environment that could cause trouble for the business

or project.

The degree to which the internal environment of the firm matches with the external

environment is expressed by the concept of strategic fit. Identification of SWOTs is important

because they can inform later steps in planning to achieve the objective. First, decision-makers

45
should consider whether the objective is attainable, given the SWOTs. If the objective is not

attainable, they must select a different objective and repeat the process.

SWOT Analysis for current market situation of TML LCV Pickups is as below

Strengths:

➢ Excellent Mileage

➢ Overload capability

➢ Low maintenance cost

➢ Spare parts availability

Weakness:

➢ Difficulty in narrow lanes

➢ Poor initial pickup

Opportunities:

➢ Growing markets

➢ Good customer base to tap

Threats:

➢ Eicher is aggressive in converting all the Tata customers

➢ SML and M&M are also planning for good share of volumes

46
Recommended Market Development Plan

1. Service Campaigns: A campaign can be initiated targeting the existing customers for

promoting the better maintenance costs and the longer life of the vehicle compared to

competitors. Tata’s 407 brand must be promoted as the 30years old reliable brand with

a better resale value than the upcoming new entrants where the resale and the

reliability and life of the vehicle are doubtful.

2. Features Advantages and benefits promotion:

a. Power and torque: Tata has the optimum power and torque rating suitable for

the vehicle. Competition vehicles are offering higher power and torque which

consumes lot of diesel. Tata customers get better mileage advantage.

b. Load body: Tata’s vehicle has a wider load body due to which the vehicle will be

stable and there are zero chances of toppling in the ghats and turnings.

Competition has a narrow cabin and has seen many cases of vehicle toppling.

Wider cabin and load body has a higher road grip and higher tyre life which is an

advantage and safety for the customer.

3. Sales Campaigns: Customers need to be educated on the higher benefits of the Tata

vehicles and to be cautioned not to fall into a prey to the competition offerings which

later turn into losses. The below methods can be used for the sales promotions

a. Customer Meets: A group of 20 to 30 customers needs to be called for a meet at

a local nearby place and a presentation should be shown explaining the product

advantages suitable for the application. This meet can be arranged at a

function/party hall, hotel banquet hall or at a ground with promotion tent. A

47
 lunch, snacks or a dinner can be offered to the customers based on the time of

the event. A short scheme can be announced during the meet to attract spot

bookings at the event itself. Whoever books the vehicle by paying an amount

should be delighted at the event by announcing their name in the event, giving a

surprise gift, key handover etc. In case of big target markets where there is a

possibility to address 200 plus customers, these customer meets should be

arranged in a much more bigger way.

b. Mileage Challenge: This is an innovative way of drawing the customers’ attention

towards the product’s best attribute mileage. A campaign should be arranged

calling all the customers and a trial vehicle must be given for mileage trial. With

10 to 20 different drivers participating for the mileage trail of around 30kms

each trip, best of the three drivers are to be announced as winners. This creates

a good word of mouth and publicity in the peer group about the product

performance. This event can be hosted at a large petrol pump on a highway for

the ease of operation.

c. Exchange and Loan Campaigns: Financier tie-ups and pre-used vehicle seller tie-

ups must be done prior to this campaign. In this campaign, customers will be

given an option of exchanging their old vehicles for a new vehicle and can get the

finance for the new vehicles in the same event. This event provides a win-win

situation for TML as well as the financier. In future, the financiers will also start

to source the sales leads.

48
d. Free Service Campaign: This campaign is targeted towards the existing customers

to generate the sales leads as well as to generate service revenue. This event can

be organized at any authorized workshops where there will be enough facility to

provide the full-fledged service for the vehicles. To attract the customers, a labor

charge discount or a spares discount must be arranged. To make this more

lucrative, an eye-check up camp or a medical checkup camp for the drviers can

also be organized along with this campaign with prior arrangements.

49
 Chapter 10

References

https://www.tatamotors.com/

https://light-trucks.tatamotors.com/

https://en.wikipedia.org/wiki/Light_commercial_vehicle

https://www.eichertrucksandbuses.com/trucks/haulage/light-medium-duty/pro-1049

http://www.mahindratruckandbus.com/light-commercial-vehicles/index.aspx

http://www.smlisuzu.com/

https://www.autobei.com/autoreports/commercial-vehicle/truck/indian-truck-strategy-analysis-report/

http://trucksuvidha.com/Truck-Industry-In-India.aspx

50
 Chapter 11

Annexure

List of the Respondents

Sl.No Customer Name Brand Model Qty PHONE NO Financier: APPLICATIONS

1 ASHOK MUVVA VECV Eicher 10.49 1 8096159858 CHOLA FRUITS
2 SRINIVASA RAO THANNIRU VECV Eicher 10.49 1 9392094098 SHRIRAM COTTON
3 JAVVAJI SRILAKSHMI VECV Eicher 10.49 1 9059500517 HDB PADDY
VIJAYASAI POULTRIES PVT
LTD / VEMULAPALLI VECV Eicher 10.49 1 9177393969 HDFC POULTRY
4 NAVEEN KISHORE
5 MYNENI NAVEEN VECV Eicher 10.49 3 7842777777 AXIS BANK FMCG
6 BORRA BABU RAO VECV Eicher 10.49 1 9505345777 INDUS IND MLO
TWO
PRASASA SRINIVAS VECV Eicher 10.49 1 8522051234 HDFC WHEELER
7 TRANSPORT
ANNAPAREDDY
VECV Eicher 10.49 1 9848142766 SHRIRAM MLO
8 TIRUPATHIREDDY
9 JAVVAJI SAITEJA SML SML 5252XM HD 1 9059500517 HDB PADDY
HARIKA CHICKEN CENTRE /
SML SML 5252XM HD 1 9246985556 HDFC POULTRY
10 BRAHMAM
RAYANA VENKATA
SML SML 5252XM HD 1 9553979888 CHOLA MARBLES
11 SRINIVASARAO
DEPATMENTAL
KARRA RAMBABU SML SML 5252XM HD 1 9248395730 HDFC
12 STORE
13 CHALAVADI VENKATA RAO SML SML 5252XM HD 1 9916779918 SHRIRAM MLO
14 PALAGANI PULLA RAO M&M Mahindra DI3200 1 9989476003 INDUSIND POULTRY
15 KOKKILIGADDA ISSAC M&M Mahindra DI3200 1 9550502311 HDFC AQUA
16 PANDEM SULOCHANA M&M Mahindra DI3200 1 9849697127 HDFC PHARMA
17 SHAIK SANAVULLA M&M Mahindra DI3200 1 9441817618 HDFC MLO
VENKATA RAJESH
OWN
POULTRIES PRIVATE LTD / M&M Mahindra DI3200 1 POULTRY
FUNDS
18 PARITALA PURNA RAJESH
SREERAM PLASTIC
M&M Mahindra DI3200 1 9346939054 HDFC
19 MALLIKHARJUNA RAO BOTTLES
20 TALASILA LOKESWARI VECV Eicher 10.49 1 KVB CEMENT
SOVEREIGN AGRO
OWN
INSECTICIDES / CHAKKA VECV Eicher 10.49 1 9848268448 FERTILIZERS
FUNDS
21 BADRINATH
SATYA CONSTRUCTIONS /
MADDIRALA SRINIVASA VECV Eicher 10.49 1 7337556754 KOTAK CEMENT
22 RAO
23 JONNALAGADDA TATA VECV Eicher 10.49 1 9908866032 KOTAK VEGETABLES

51
 RAO
R R CHICKEN P LTD / P
VECV Eicher 10.49 1 9849982499 KOTAK POULTRY
24 VENKATA RAMANA
MOHANA HARSHA
LOGISTICS / KANAJAM VECV Eicher 10.49 1 9848112205 CHOLA PARCEL
25 SIVA KUMAR
26 PELURI SUBRAMANYAM VECV Eicher 10.49 1 9248094532 SBI PARCEL
27 MOHAMMAD ISMAIL VECV Eicher 10.49 1 9989161614 INDUSIND PARCEL
ANANTANENI BHARAT
VECV Eicher 10.49 1 9505203333 HDB PARCEL
28 KUMAR
MAGANTI YASWANTH
VECV Eicher 10.49 1 9666736666 SFL FMCG
29 KUMAR
30 BATO LOGISTICS VECV Eicher 10.49 1 9346642285 KOTAK PARCEL
GRANDHI TRANSPORT
VECV Eicher 10.49 2 9441326477 CHOLA PARCEL
31 MOVERS
32 CHENNURI SATHISH TML Tata SFC407 Pickup 1 9848247280 HDFC MILK VAN
33 KOMMU LABAN TML Tata SFC407 Pickup 1 9951194439 SFL FEED
34 GOBBURI SIVA BABU TML Tata SFC407 Pickup 1 9348131759 CHOLA FRUITS
35 GOBBURI SIVA BABU TML Tata SFC407 Pickup 1 9348131759 KOTAK FRUITS
DAVULURI
TML Tata SFC407 Pickup 1 9989839221 CHOLA MIRCHI
36 VENKATESWARLU
CANARA
C J B AGENCIES TML Tata SFC407 Pickup 1 9678746666 PADDY
37 BANK
38 SANKARA RAO CHERUKURI TML Tata SFC407 Pickup 1 9866814023 CHOLA MIRCHI
39 KALLI SAMBI REDDY TML Tata SFC407 Pickup 1 9705248359 CHOLA MLO
KANCHARLA PEDDA
TML Tata SFC407 Pickup 1 9177520283 CHOLA MIRCHI
40 KOTESWARA RAO
41 P V R AGENCIES TML Tata SFC407 Pickup 1 9849921486 HDFC PADDY
42 TAKKELLA YEDUKONDALU TML Tata SFC407 Pickup 1 9849183227 HDFC FRUITS

52