ANALYSIS & RECOMMENDATION OF PROMOTION STRATEGY FOR TATA

PCBU, JAMSHEDPUR

Under the guidance of :Mr. Diptimoy NayakTSM – Tata Motors

&Dr.Anurag Singh

FMS BHU

Submitted by :Sajal Kishore

FMS BHUMBA

Roll No - 54

FLOW OF PRESENTATION

Industry Profile

Company Profile

SWOT Analysis

Research Methodology

Findings, Suggestions & Limitations

Industry Profile

The automotive industry in India is one of the largest in the world and one of the fastest growing globally .

 According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world ,growing from 16 to 18 percent to sell around three million units in the course of 2011-12.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world.

The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.

Both exports and imports of passenger cars are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged.

 According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020.By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the roads.

Sales trend of passenger cars in India and their export in the recent years :

2004-'052005-'062006-'072007-'082008-'092009-'102010-'110

500000

1000000

1500000

2000000

2500000

3000000

106157211430761379979

15498821552703

1951333

2520421

166402 175572 198452 218401335739

446145 453479

SALES

EXPORT

Company Profile• Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR

1,65,654 crores (USD 32.5 billion) in 2011-12. 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. It is the world's fourth largest truck and bus manufacturer.

• The Tata Motors Group’s over 55,000 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.'‘

• Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company.

• Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal.

• QUALITY POLICY : TATA Motors is committed to maximizing customer satisfaction & strives to achieve the goal of excellence through ongoing development, manufacture and sale of reliable ,safe, cost effective quality products & services of International standards, using environmentally sustainable technologies for improving levels of efficiency and productivity within the plants and ancillaries. TATA Motors also had a commitment towards improving the quality of life of its employees both within and outside its plants and offices through improved work practice & social welfare schemes.

- Ratan N TATA

SWOT ANALYSISSTRENGTHS:•The brand is very well established.•Tata’s management is strengthened by the collective experience of its partners and acquired companies.•The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow.• Creation of an entirely new segment with TATA NANO.•Acquisition of Jaguar and Land Rover.

WEAKNESS:•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.•Tata has not got a foothold in the luxury car segment in its domestic market.•Positioning of TATA NANO .•One weakness which is often not recognised is that in English the word 'tat' refers to items which are cheap and of bad quality. A brand sensitive British consumer might think twice before going for such a brand.

OPPORTUNITIES:•The Nano could sell well in other geographic markets like that of China. •Jaguar and Land Rover provide Tata with an opportunity to establish itself in the luxury segment in the upcoming years.•No major player in the electric car segment in the domestic market so ‘Indica Vista electric’ and ‘Megapixel’ could just be the right answer for Indian consumers.

THREATS:•Maruti Suzuki and Hyundai are major rivals in the small car market.•Powerful competitors for the luxury market including Honda, Toyota, Ford and Volkswagen are beginning to push into the Indian market.•Tata’s competitive price advantage will be under pressure as environmental regulations are tightened and material costs increase.

CONTROL OF TATA PASSENGER CAR BUSINESS UNIT (PCBU),Jamshedpur

Regional Product Manager

Area Sales Head

TATA PCBU

Jsr

Promotion Function

The promotion functions carried out by TATA PCBU can be divided intoATL – Above the line promotions which

include print ads( newspaper ,magazines) , T.V , radio

BTL – Below the line promotions which include exchange fair, rural fair, loan fair, society activities, corporate display activities etc..

PROJECT OBJECTIVES

1. To study the preference of young employees while buying a car so as to develop a promotional strategy for TATA PCBU.

2. To analyze the potential of using two wheeler mechanics as referrals for TATA NANO in the 2 wheeler exchange business.

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE 1 : To study the preference of young employees while buying a car so as to develop a promotional strategy for TATA PCBU.

Research Design : Descriptive Population : Young Employees of

TATA STEEL TATA MOTORS AEGIS TATA CUMMINS BANKS ( ICICI, SBI, PNB )

Sampling Unit: Individual employee Sample size : 250 (50 from each company) Sampling technique : Convenience Sampling Nature of data : Primary Location of study : Jamshedpur Duration of study : 6 weeks

FINDINGS

REASON FOR BUYING A CAR

STATUS RIGHT TIME

UTILITY OTHERS0

5

10

15

20

25

30

35

40

19

6

23

2

16

6

27

1

37

75

1

26

4

18

2

10

5

32

3

AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

MOST IMPORTANT FEATURE IN A CAR WHILE BUYING IT ?

AEST

HETIC

S

SAFE

TY

SPAC

E

ENVI

RONMEN

T FR

IENDLY

0

10

20

30

40

20 21

27

23

14

58

39

27

2

29

510

612

16 17

5AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

PREFERENCE OF COLOUR

BLACK RED MAROON BLUE WHITE OTHERS0

5

10

15

20

25

30

19

15

3

7

3 3

17

11

4 4

97

25

35

9

4 4

1617

64 4

3

11

18

23

15

1

AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

PRICE BRACKET WITHIN WHICH THE CAR FALLS

P<3 3<P<4 4<P<5 P>50

5

10

15

20

25

30

35

40

17 18

5

10

14

14

31

03

30

17

13

2422

35

37

5

AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

Price (P) in lakhs

MANAGEABLE DOWN PAYMENT

D < = 1 1 < D < 3 3< D < 5 D > 5 0

5

10

15

20

25

30

35

40

30

20

0 0

10

31

5 42

22

17

9

1

1921

9

4

37

63

AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

DOWNPAYMENT D IN LAKHS

MANAGEABLE EMI

E < 10 10 < E < 15

15 < E < 20

E > 200

5

10

15

20

25

30

35

40

45 42

53

0

35

12

1 22

18

25

54

19

26

1

41

6

2 1

AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

EMI E IN THOUSANDS

PREFERRED TIMING FOR BUYING A CAR

DIWALI YEAR END BONUS ANYTIME0

5

10

15

20

25

20

4

17

9

19

1

20

10

21

2

15

12

17

4

21

8

23

13

13AEGISTATA MOTORSTATA STEELTATA CUMMINSBANKS

PERCENTAGE WISE DISTRIBUTION OF MAJOR FINDINGS

COMPANY

INTERESTS FEATURES COLOUR TIME

AEGIS STATUS -38UTILITY-46

AESTHETICS -40SAFETY -42

BLACK-38RED -30

DIWALI -40BONUS -34

TATA MOTORS

STATUS -32UTILITY-54

AESTHETICS -46SAFETY -28

BLACK-34RED -22

DIWALI -38BONUS -40

TATA STEEL

STATUS-74 AESTHETICS -78SPACE -14

BLACK-50BLUE -18

DIWALI -42BONUS -30

TATA CUMMINS

STATUS-52UTILITY-36

AESTHETICS -58SPACE -20

BLACK-32RED -34

DIWALI-34BONUS -42

BANKS UTILITY-64STATUS-20

SAFETY -32SPACE -34

WHITE-30RED -36BLACK-22

DIWALI -46ANYTIME -26

COMPANY PRICE BRACKET (lacs)

DOWN PAYMENT (lacs)

EMI BRACKET (thousands)

AEGIS P<3 - 343<P<4 - 36

D<1 - 601<D<3 - 40

E<10 - 84

TATA MOTORS 4<P<5 - 28P>5 - 62

D<1 - 201<D<3 - 62

E<10 - 70

TATA STEEL 4<P<5 - 60P>5 - 34

1<D<3 - 443<D<5 - 34

10<E<15 - 3615<E<20 - 50

TATA CUMMINS

4<P<5 - 48P>5 - 44

1<D<3 - 383<D<5 - 42

10<E<15 - 3815<E<20 - 52

BANKS 4<P<5 - 74 1<D<3 - 74 E<10 – 82

SUGGESTIONS :COMPANY TIME OF

PROMOTIONCOLOUR OF PRODUCTS

HIGHLIGHTS PRODUCTS SUGGESTED

AEGIS DIWALI OR BONUS

BLACK,RED AESTHETICS & SAFETY

NANO, INDICA

TATA MOTORS

DIWALI OR BONUS

BLACK,RED AESTHETICS & SAFETY

INDICA VISTA,INDIGO

TATA STEEL DIWALI OR BONUS

BLUE,BLACK SPACE & AESTHETICS

MANZA, INDIGO ECS,SAFARI

TATA CUMMINS

DIWALI OR BONUS

BLACK,RED SPACE & AESTHETICS

MANZA,INDIGO ECS, SAFARI

BANKS DIWALI WHITE,BLACK RED

SAFETY, AESTHETICS & SPACE

INDICA VISTA, INDIGO

SUGGESTIONS

Use black & red products in ATL promotions. Organizing display activities and campaigns as

BTL promotions taking into account the findings from the research.

Heavy promotions during Diwali and at the time employees receive bonus.

The findings related to down payments and EMI’s be analyzed by higher authorities so as to make convenient offerings to the consumers.

Corporate offers for the employees of TATA on respective products as mentioned in the findings.

LIMITATION

Time constrain

RESEARCH OBJECTIVE 2 : To analyze the potential of using two wheeler mechanics as referrals for TATA NANO in the 2 wheeler exchange business.

Research Design : Exploratory & Descriptive Population : Two wheeler mechanics Sampling Unit: Individual mechanic Sample size : 77 Sampling technique : Convenience Sampling Nature of data : Primary and Secondary Location of study : Jamshedpur Duration of study : 4 weeks

PHASE 1 – Exploratory Research

SECONDARY DATA ANALYSIS: While going through sales data of the company in Jamshedpur , it

was found that there is a huge potential for automobile exchange business and it has been growing in the recent months.

It was also seen that the 2 wheelers exchanged were less in number as compared to 4 wheelers.

TATA NANO, being a special product for TATA is required to be sold in high volumes through the exchange business . It can be seen that there have been only a few automobiles exchanged with NANO in the recent months.

A special exchange offer was introduced only for TATA NANO in the month of FEB-2012 so as to boost up sales and it can be seen that the exchange business of TATA NANO increased in the following month.

The Territory Sales Manager , when informed about the same, had a talk with the Area Sales Head and his team and then it was decided to focus on the exchange of TATA NANO with 2 wheeler vehicles as this was a good opportunity to be exploited.

MONTH WISE VEHICLE EXCHANGE REPORT FOR THE FINANCIAL YEAR 2011-’12

APRIL

MAY

JUNE

JULY

AUGUST SE

POCT

NOVDEC JA

NFE

B

MAR

CH0

20

40

60

80

100

120

12 917 14

4 7 10

46

106

48 50 47 TOTAL EXCHANGE

DETAILED EXCHANGE REPORT FOR THE FINANCIAL YEAR 2011-’12

APRIL

MAY

JUNE

JULY

AUG

SEP

OCTNOV

DEC JAN

FEB

MAR

CH0

20

40

60

80

100

120

8 815 12

4 7 10

44

106

48 50 47

4 1 2 2 0 0 0 2 6 4 514

6 4 3 61 0 1 4

159

16 15

CARSBIKESNANO

PHASE 2- Descriptive Research

2 wheeler mechanics were contacted area wise so as to invite them for a meeting . Following areas were taken into consideration : Telco Govindpur Tinplate Golmuri Sakchi Bistupur Kadma Mango

A Group administered survey was conducted where responses about the following were obtained :

* Willingness to work with TATA for mutual benefit ?

* Willingness to work as referrals for TATA NANO in the 2 wheeler exchange business ?

90%

10%

YESNO

55%

45%

YES NO

* If no, the reason for the same ?

* Willingness to work as referrals for TATA NANO if offered a gift amount for sale of each car:

60%

7%

24%

9%

Column1

fear of shrink-ing 2 wheeler business

personal reasons

no time for it

others

92%

8%

YESNO

STEPS TAKEN THEREAFTER:

TATA NANO banners portraying the exchange offer were put on all the mechanic shops.

Mechanics were told how to refer TATA NANO to the 2 wheeler owners.

‘Panthers’ were given the duty of regular follow ups and each area had a different panther to administer sales.

If a panther got a call from a customer regarding the offer , he was to inform the Sales Office from where further follow ups were done.

Subsequently, the mechanic had to call up the panther and inform him about the referral.

If the sale was made, the mechanic was to be given a gift amount of Rs 2000.

REPRESENTATION OF THE PROCESS

MECHANICS

REFERS

CUSTOMERS

BUY A NANO

PROFIT FROM SALES

FINDINGS

THERE IS HIGH POTENTIAL IN THIS CHANNEL AS 5 TATA NANO’S WERE SOLD USING MECHANICS AS REFERRALS IN A PERIOD OF 4 WEEKS .

SUGGESTIONS

The information regarding the sale of TATA NANO via a mechanic should be conveyed to other mechanics in subsequent meetings so as to encourage them.

Considering long term prospects, a better system needs to be developed for the delivery of gift amount to the concerned mechanic with ease and also to verify the authenticity of the claim made by him.

Regular follow up should be done and it should be made sure that the banners are put on mechanic shops.

LIMITATIONS

Only a few areas in the city were targeted for this project as it had to be completed within the given time period.

The success of this project depends solely on the willingness of the mechanics to work as referrals.

THANK YOU

….QUERIES ???