TATA

1. INTRODUCTION TO THE TOPIC
The rapid pace of change and intense competitive pressure in today's marketplace
demand that brands continuously innovate themselves to maintain their relevance and market
position.
TATA MOTORS has launched a new vehicle i-e “WINGER CARGO”. This
vehicle belongs to the small commercial vehicle category. The special feature of the vehicle is
the loading area and the closed container body. Tata winger cargo vehicle’s idea has been
generated from Mercedes-benz sprinter with huge cargo space and easy navigation within
city limits with no legal restrictions giving driver more choice, flexibility and efficiency to the
trucking companies and to the customers .
When there is a new launch it is quiet essential to make people aware of the new
launched vehicle, find out their reactions and views. In order to survive in the cut throat
competition the competitors and their strategies must be identified .
The competitive advantages of TATA MOTORS are:-
 Geographical network of offices
 Ability to cross sell various TATA businesses
 Skill and leadership of its employees
 Depth of expertise
 Brand
 Independence
 Performance ethics
 Culture of integrity.
Segmentation, targeting and positioning are the three important factors for the success
of a new launched product. Branding is also an important factor that adds to the success of
the product.
This project deals with the branding and positioning aspects of the product WINGER
CARGO.
BRANDING
A brand is the identity of a specific product, service, or business. Branding is the
process of creating distinctive and durable perceptions in the minds of consumers. The
benefits of branding are:-
1. Memorability- It is easier to remember the branded company than the what is its name.
2. Loyalty- When people have a positive experience with a memorable brand, they're more
likely to buy that product or service again than competing brands.
3. Familiarity- Psychologists have shown that familiarity induces liking, and this makes even
non-customers more likely to recommend a brand they know.
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2. 4. Premium image, premium price- Branding can lift what you sell out of the realm of a
commodity, with customers
willing to pay more for the well-branded product or service.
5. Extensions- With a well-established brand, you can spread the respect you've earned to a
related new product, service or location more easily
6. Greater company equity- Making your company into a brand usually means that you can
get more money for the company when you decide to sell it.
7. Lower marketing expenses- Although you must invest money to create a brand, once it's
created you get a bigger bang for every marketing buck using it.
8. For consumers, less risk- People tend to choose the brand-name supplier over the no-name
one when afraid of the consequences of a mess-up.
POSITIONING
• It means the process by which marketers try to create an image or identity in the
minds of their target market for its product, brand, or organization.
• It is the aggregate perception the market has of a particular company, product or
service in relation to their perceptions of the competitors in the same category.
• It will happen whether or not a company's management is proactive, reactive or
passive about the on-going process of evolving a position. But a company can
positively influence the perceptions through enlightened strategic actions.
• It is the third and the final step of STP(Segmentation, Targeting and Positioning).
• After segmenting a market and then targeting a consumer, you would proceed to
position a product within that market.
• Products or services are 'mapped' together on a 'positioning map'. This allows them to
be compared and contrasted in relation to each other.
• This is the main strength of this tool. Marketers decide upon a competitive position
which enables them to distinguish their own products from the offerings of their
competition (hence the term positioning strategy).
• According to Solomon, position strategy is an essential part in the marketing efforts
because companies have to use the elements in the marketing mix to influence the
customers understanding of the position
• The goal of positioning strategies relates to the management of consumers'
perceptions. However, positioning focuses on the creation of brand associations -
consumers' perceptions of the attributes that differentiate the brand from competitive
offers
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3. Company Profile
Tata 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 spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint
venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and
Tata cars and Fiat power trains. The company's dealership, sales, services and spare parts
network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat
branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products to several international
markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are
from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a
reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.
Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint
venture with the Brazil-based Marcopolo, a global leader in body-building for buses and
coaches to manufacture fully-built buses and coaches for India and select international
markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's pickup
vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.
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 and
South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh,
Ukraine, Russia, Senegal and South Africa.
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4. 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
pioneering 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 the 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, 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
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5. 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.
HISTORY OF TATA MOTORS
The Company was incorporated on 1st September 1945 at Mumbai to manufacture
diesel vehicles for commercial use, excavators, industrial shunter, dumpers, heavy forgings
and machine tools. The commercial diesel vehicles which were known `Tata Mercedes Benz'
(TMB) is now called `Tata' vehicles after the expiry of the collaboration agreement with
Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper
making machinery. In 1960 the company's name, which was Tata Locomotive & Engineering
Company Ltd. was changed to Tata Engineering & Locomotive Company Ltd. In the year
1987 the company undertook to set up a new forge shop, a high output foundry line, a new
paint shop as well as augmentation of engine and gearbox manufacturing facilities, all at
Jamshedpur
In 1991 during the year the company entered into a collaborative agreement with an
internationally renowned engine research and development organization to jointly develop
higher horsepower, fuel efficient diesel and petrol engines to meet the future requirements of
the company. The last quarter saw the company launching two new passenger vehicles, the
SIERRA and the ESTATE totally designed and manufactured in India. The company
acquired a BIFR company, M/s Noduron Founders Maharashtra Ltd. The total cost for Telco
worked out to Rs.18 crores as against setting up of similar critical castings foundry. During
the year company launched new earth moving equipment TWK-3036 Tata Front End Wheel
Loader. Two new models in the EX series of hydraulic excavators were launched. A 10 tonne
pick and carry articulated crane, designed and developed in-house was also introduced.
During the year company entered into an agreement with Nachi-Fujikoshi Corporation, Japan
to manufacture arc and spot welding robots suitable for automobile manufacturing
applications. During the year, company undertook to set up a joint venture with Asian Glass
Co. Ltd., Japan to manufacture float glass to be used as wind shields for automobiles. ACC
along with Tata Exports Ltd. participated in the joint venture. The joint venture named as
Floathlass India Ltd., the Company would have a stake of 16.33%. Tata Cummins Ltd.,
Mercedes-Benz (India) Ltd., Tata Holset Ltd., Tata Precision Industries, Singapore and Nita
Company Ltd., are the joint Ventures of the
Company
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, for
the 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.
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6. 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 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
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
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7. 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.
Tata Engineering & Locomotive Co. is renamed as Tata Engineering Ltd. It replaced
its three-shift 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 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.
Tata Motors, the country's largest commercial vehicles manufacturer unveiled the new
LPT 909EX Turbo Truck in Tamil Nadu. Tata Motors and Tata Africa unveiled a range of
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8. passenger cars, utility vehicles, pick-ups, trucks and buses for the South African market. Tata
Motors has launched a face lifted version of its multiutility vehicle, Tata Sumo. Tata motors
rolls out Tata SFC 407EX BS II turbo light commercial vehicle.
Tata Motors unveils Tata Safari DICOR in Kerala market on August 11, 2005. Tata
Motors rolls out 2 luxury variants of Indigo. Tata Motors unveiled new Indica V2 Turbo with
a price tag of Rs 4.10 lakh for DLG variant and Rs 4.31 lakh for DLX. Tata Motors ropes in
CVTech to make parts for its small car. Tata Daewoo inks pact with Pakistan co.
Tata Motors has been presented the Golden Peacock Global Award for Corporate
Social Responsibility (CSR) in the Large Business category by the Institute of Directors in
2007. Tata Motors buys Nissan facility in S. Africa. Tata Motors has got a prestigious order
from the Delhi Transport Corporation (DTC) for 500 non-AC, CNG-propelled buses. Tata
Motors Ltd has appointed Mr. P M Telang as Executive Director (Commercial Vehicles).
PRODUCT RANGE
Tata Motors' product range covers :-
1. Passenger cars and utility vehicles: TATA SUMO GRANDE
TATA SAFARI
Indica Vista
Tata Sierra
Tata Estate
Tata Sumo/ Spacio
Tata Indica
Tata Indigo
Tata Indigo Marina
Tata Winger
Tata Nano
Tata Xenon XT
Tata
Xover
2. Concept vehicles: 2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indica
2002 Tata Indiva
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante
2009 Tata Prima
3. Commercial vehicles: TATA 1616 STARBUS
TATA MARCOPOLO BUSES
Tata Ace
Tata TL/ Telcoline /207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
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9. Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Globus (Low Floor Bus)
Tata Marcopolo Bus (Low Floor Bus)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8X2)
Tata 3516 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6X4)
Tata Novus (Heavy truck designed by Tata
Daewoo)
4. Military vehicles: Tata LSV (Light Specialist Vehicle)
Tata 2 Stretcher Ambulance
Tata 407 Troop Carrier, available in hard top,
soft top, 4x4, and 4x2 versions
Tata LPTA 713 TC (4x4)
Tata LPT 709 E
Tata SD 1015 TC (4x4)
Tata LPTA 1615 TC (4x4)
Tata LPTA 1621 TC (6x6)
Tata LPTA 1615 T
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11. Global Operations & Subsidiaries
Tata Motors is pursuing growth internationally through exports and acquisitions. It
has a joint venture with Marcopolo, the Brazil-based maker of bus and coach bodies. It has
also entered into a joint venture with Thonburi Automotive Assembly Plant Company of
Thailand to manufacture and market the company's pickup vehicles in Thailand. Tata Motors
and Fiat Auto have entered into an agreement for a Tata license to build a commercial vehicle
at Fiat's facilities in Córdoba, Argentina.
The company has made substantial investments in building a network of associate and
subsidiary companies and joint ventures that complement and support its business activities.
These include:
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12. Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of Tata
Motors in the business of heavy commercial vehicles. It is South Korea's second largest truck
maker and the largest exporter of heavy trucks.
Telco Construction Equipment Company makes construction equipment and offers
allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction
Machinery Company, Japan.
Tata Technologies provides specialized engineering and design services, product
lifecycle management and product-centric information technology services. It has two
operating companies, INCAT and Tata Technologies EKS.
Tata Cummins manufactures high horsepower engines used in the company's range of
commercial vehicles.
HV Transmissions and HV Axles are 100 per cent subsidiaries that make gearboxes
and axles for heavy and medium commercial vehicles.
TAL Manufacturing Solutions is a 100 per cent subsidiary that provides factory
automation solutions and designs and manufactures a wide range of machine tools.
Tata Motors European Technical Centre is a UK-based 100 per cent subsidiary
engaged in design engineering and development of products.
TML Financial Services is a 100 per cent subsidiary in the business of financing
customers and channel partners of Tata Motors.
Hispano Carrocera is a reputed Spanish bus manufacturing company in which the
company has acquired a 21 per cent stake.
Tata Auto Comp Systems (TACO) is a holding company for promoting domestic and
foreign joint ventures in auto components and systems. It is also engaged in engineering
services, supply chain management and after-market operations for the auto industry.
Concorde Motors is a 100 per cent subsidiary that retails Tata Motors' range of
passenger vehicles
COMPETITORS
Mahindra & Mahindra Ltd.
Mahindra & Mahindra (M&M) was first known for assembly of the iconic Jeep in
India and is part of the US $6.7 billion Mahindra Group, an automotive, farm equipment,
financial services, trade and logistics, automotive components, after-market, IT and
infrastructure conglomerate. The company was set up in 1945 as Mahindra & Mahindra. The
company later branched out into manufacture of light commercial vehicles (LCVs) and
agricultural tractors agricultural tractors, rapidly growing from being a manufacturer of army
vehicles and tractors to an automobile major with a growing global market. At present, M&M
is the leader in the utility vehicle (UV) segment in India with its flagship UV, the Scorpio.
It had done a joint venture with ITEC, North American leader in heavy trucks. M&M
has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in the CV
business. ITEC is the leader in medium and heavy trucks and buses in North America, and is
the world's largest manufacturer of medium-duty diesel engines. Mahindra International aims
to have a presence across the CV market (6-35 tones GVW) with variants of passenger
transport, cargo and specialized load applications and is likely to start producing
medium/heavy commercial vehicles from 2009.
Ashok Leyland Ltd.
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13. The company was established in 1948 as Ashok Motors, with an aim to assemble
Austin cars. Manufacturing of commercial vehicles was started in 1955 with equity
contribution from Leyland Motors. Today the Company is the flagship of the Hinduja Group,
a British-based and Indian originated transnational conglomerate.
Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL) recently acquired
the truck unit of Czech Republic-based Avia for US$35m. Avia manufactures 6-9 tonne
LCVs and has a capacity of 20,000 units per annum. The acquisition has given ALL direct
access to an entire range of Avia trucks, Avia’s press shop with dies and tools, welding lines,
state-of-the-art paint shop and R&D facilities. ALL has also entered into technology
agreements with Hino Motors of Japan and ZF of Germany to complement its in-house R&D
efforts and developing complementary components and aggregates.
Force Motors
Joint Venture with MAN for manufacturing high-tonnage vehicles Force Motors has
paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty vehicles, such
as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the 16-32 ton range at
its Pithampur plant, with an initial capacity of 24,000 units per annum and at an investment of
Rs7bn. The JV plans to sell nearly half of its production in the domestic market, while the rest
is to be exported to the Middle East, Turkey, Russia, Asia and Africa. Further, the two
companies have formed another JV to manufacture buses in India from end-2007.
Hyundai Motors
The Hyundai Motor Company, a division of the Hyundai Kia Automotive Group, is
South Korea’s largest and the world’s fifth largest automaker in terms of units sold per year.
Headquartered in Seoul, Hyundai operates the world’s largest integrated automobile
manufacturing facility in Ulsan, which is capable of producing 1.6 million units annually. The
Hyundai logo, a slanted, stylized 'H', is said to be symbolic of two people (the company and
customer) shaking hands. Hyundai means "modernity" in Korean.
Maruti Suzuki India Ltd.
Maruti Suzuki India Limited is a publicly listed automaker. It is a leading four-
wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a
majority stake in the company. It was the first company in India to mass-produce and sell
more than a million cars. It is largely credited for having brought in an automobile revolution
to India. It is the market leader in India. On 17 September 2007, Maruti Udyog was renamed
to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles.
STRATEGIES FOR COMMERCIAL VEHICLE
“Ever since 2000 - when Tata Motors made a hefty Rs 500 crore (Rs 5 billion) loss in
its worst financial performance - the company has been looking at ways to overcome cyclical
ups and downs.”
The company chalked out a two-pronged strategy. The first was the classical route of
trying to balance sales in different markets. Through an overseas push, Tata Motors felt this
could be done. If there was a downturn in one market, an upturn in another could help it tide
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14. over fluctuating market situations. The acquisition of Daewoo's commercial vehicles business
in March 2004 was a step in that direction.
The second part of the strategy was to add to its portfolio, products that would largely
be immune to industry fluctuations. One way out: make vehicles that were smaller. Buyers of
small and light commercial vehicles are largely individuals. The 207 DI (small commercial
vehicle two-tonner) launched in August 2002, which had a Tata Mobile chassis and the
successful Tata 407's engine, was one such instance.
The Ace was another part in this product strategy. However, industry analysts say that
developing the one-tonne Ace was a tougher task in many ways than the 207 DI.
The challenges were both internal and external. One was to have the entire
management team on the same wavelength on various operational and developmental issues.
Right costing was another challenge. The vehicle had to be built to a pre-determined
price band, that too at a certain quality standard. If potential buyers were individuals who
would otherwise opt for a three-wheeler, they had to be given a vehicle that would look and
perform better. In this quest, the vehicle cabin incorporated car-like features to stand out in a
crowd of rudimentary three wheelers.
Partly to keep costs under control, the company also banked on outsourcing. Today, a
significant 82 per cent of the Tata Ace is outsourced. Even some of the design elements were
focused on costs. It also paid attention to safety features. For instance, the rearview mirror
was mounted on the windscreen glass instead of the roof of the vehicle.
The logic: the windscreen of a vehicle has the lowest vibration, so the rearview for the
driver will be perfect. It is trying to add value for customers in other ways too. The company
recently introduced a range of Ace accessories like a vehicle protection system, music
systems and even Ganesha idols.
Customer gains
The company also did a market segmentation analysis to understand potential customers
better. There were primarily two sets of customers: entry-cost sensitive customers and others
who valued return-on-investment.
The company decided to focus on the ROI-sensitive customer who would be willing to pay a
slightly higher price, but would require lower operating costs.
Tata Motors also had to address a key concern of commercial vehicle buyers - lead (time
taken to travel a distance) and load (weight it could take). Hence, the Ace was built to achieve
top speeds of 64 kmph compared to 50-56 kmph in the case of three-wheelers.
From the customer’s point of view, it could mean more trips on any given day. In terms of
load bearing capacity, the cargo bed of the Ace was bigger at 2,200X1,500 mm, compared to
an average of 1,950X1,450 mm of other three-wheelers.
There were other benefits, too. In running costs, the company claims that Ace requires an oil
change only after every 9,000 kilometers of driving, compared to 2,500-5,000 kilometers in
the case of three-wheelers. Savings: Rs 1,000-Rs 1,500.
14

15. “Reach for the stars”
Before the launch of Ace, Tata Motors had to pay attention to one important aspect that they
are not going into the market with the mindset of selling a medium and heavy commercial
vehicle. For instance, medium and heavy commercial vehicles typically cover hundreds of
kilometers at a stretch - even the 207 DI travels an average distance of more than 200
kilometers a day.
Not so for the Ace. The operators of the vehicle travel for a shorter distance as it is primarily
used for last mile transport between the outskirts of a city to the centre (60-100 kilometers).
One fallout: it would be too much to expect owners to drive a longer distance to get to an
after-sales outlet.
So, while focusing on maximum reach it tried to benchmark itself broadly with motorcycles.
Typically, motorcycle manufacturers have a sales or service outlet every 10-20 kilometers.
That scale of reach was not required for selling the Ace.
Nevertheless, Tata Motors had to augment distribution. To increase the number of service
outlets, the company trained automobile garages and branded them Tata-certified service
points.
At present, the company claims to have a sale or authorized service station at every 50-70
kilometers in the states where the Ace is sold.
Now, Tata Motors was ready for the acid test in choosing its entry and market strategy. One
choice was to follow a tried and successful route taken by the 207 DI during launch. The 207
DI made its foray in a smaller market such as the north-east.
At that time, this region was out of market leader, Mahindra & Mahindra’s radar and through
this deliberates strategy, Tata Motors managed to create a market for pick-ups in that region.
But this time, Tata Motors took the battle straight to the enemy camp. With an aggressive
pricing strategy, it launched the Ace in Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and
Maharashtra - 70 per cent of three- wheeler sales happen in these five states.
At a value price point of Rs 220,000, the Ace was targeted to attract buyers who would
otherwise buy three-wheelers at price points from Rs 120,000-Rs 190,000.
Clearly, if the price and product were in place, positioning could not afford to be behind. But
the advertising was careful that it did not hype-up the looks of the Ace.
GLOBAL STRATEGIES
The Tata Motors is one of the world’s largest manufacturers of commercial vehicles
apart from being India’s largest passenger automobile and commercial vehicle. The OICA
ranked it as the world’s 20th largest automaker, based on figures for 2006.
Tata motors from being present as an exporter in 70 countries, the company today
focuses on 15 -20 key countries where it will have a significant presence in terms of volumes
and market share. Apart from this the company has expanded its production and assembly
15

16. operations to several other countries including South Korea, Thailand, South Africa and
Argentina and is planning to set up plants in Turkey Indonesia and Eastern Europe.
In internationalization the company’s first step was to align the international business
to the two business units — the Passenger Car Business Unit (PCBU) and the Commercial
Vehicle Business Unit (CVBU), to bring greater focus and increased synergy between the
domestic and international operations. Tata motors feel that the international business needs
to be looked at from a perspective that goes beyond volumes and presence in many countries.
According to Dr V. Sumantran, executive director, PCBU, the company has now embarked
on a road where exports are made an integral part of business and they do not think of sales
outside the country as a separate activity but integrated within the mission of each of its
businesses. According to Mr. Ravi Kant, executive director, CVBU in a cyclical business
such as one of their, it is important that they hedge against cyclicality and international
business offers an opportunity as different countries go through peaks and troughs in demand
at different points in times and hence capacity utilization is more effective and risks of
downturns can be mitigated.
Tata motors as part of their business strategy to make an entry in new and yet
uncharted markets entered the market of China and the CIS countries. Besides the assembly
plants that Tata Motors has in Bangladesh and Malaysia, the company’s recent order for 500
buses from Senegal will involve providing technical and commercial assistance to the
Senegalese government for setting up a bus body building plant. Tata Motors has been short-
listed for South Africa’s "Taxi Project" in which the government will provide an entirely new
transport system in that country. A joint venture project for bus body building in Ukraine and
serious due diligence into the opportunities available in the Chinese market are other areas
where Tata Motors is looking to create new opportunities. In addition, inorganic growth
through acquisitions also quickens the process of internationalization of the company. In
2004, it acquired the Daewoo Commercial Vehicle Company of South Korea.
The reasons behind the acquisition were:
 Company’s global plans to reduce domestic exposure. The domestic commercial
vehicle market is highly cyclical in nature and prone to fluctuations in the domestic
economy. Tata Motors has a high domestic exposure of ~94% in the MHCV segment
and ~84% in the light commercial vehicle (LCV) segment. Since the domestic
commercial vehicle sales of the company are at the mercy of the structural economic
factors, it is increasingly looking at the international markets. The company plans to
diversify into various markets across the world in both MHCV as well as LCV
segments.
 To expand the product portfolio Tata Motors recently introduced the 25MT GVW
Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage
on the strong presence of TDCV in the heavy-tonnage range and introduce products in
India at an appropriate time. This was mainly to cater to the international market and
also to cater to the domestic market where a major improvement in the Road
infrastructure was done through the National Highway Development Project
The synergies were significant – a presence in the 250 to 400 HP ranges of trucks is what the
Korean company brings to the table. This complements the existing product range of Tata
Motors which delivers vehicles up to 210 HP.
In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights
in the company. Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a
Brazil-based global leader in bus body building. This joint venture is to manufacture and
assemble fully-built buses and coaches targeted at developing mass rapid transportation
16

17. systems. The joint venture will absorb technology and expertise in chassis and aggregates
from Tata Motors, and Marcopolo will provide know-how in processes and systems for
bodybuilding and bus body design. On March 26, 2008 Tata Motors agreed to purchase
Jaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn (£1.15bn). Tata Motors
has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and
Rover. The possible reasons behind the acquisition are:
 These are the marquee brands and the legacy of both the Land Rover and Jaguar are
well recognized badges in the up market SUV (sports utility vehicle) and luxury car
segments respectively fuels the Tata motors global aspirations. This buy out
establishes its global footprints as a company with premium brands. Also the company
now can compete with giants like BMW, Mercedes and Audi.
 This acquisition also gives Tata motors to access to a readymade product pipelines
and technology. Developing a car from the scratch could otherwise take the company
anywhere between two and five years.
 The technology that propels the top-end cars is changing according to auto experts and
the hybrid technology will take over the luxury cars in a decade. Post the takeover the
Tata’s won’t be left over with obsolete technology as the ford’s existing technology
will fill the need gap for Tata’s in the interim.
Innovation, knowledge, commitment and pride are the Tata Motors greatest asset.
STRATEGIES BY COMPETITORS
Ashok Leyland Ltd
 Ashok Leyland Ltd (ALL) has entered into a tripartite arrangement with TVS Coaches
and a European company, Irizar, to manufacture bus-bodies for tourist and luxury
vehicles.
 Iveco, the Commercial Vehicle entity of Fiat and Hinduja Group who together hold
51% shareholding in India’s Ashok Leyland and 59% in Ennore Foundries have
concluded a new Agreement to significantly enlarge the cooperation between Ashok
Leyland and Iveco
 The enlarged cooperation between Iveco and Ashok Leyland is a major step in Ashok
Leyland strategy of global profitable growth.
 Ashok Leyland has signed an agreement with Japanese Nissan Motor Company for
three joint venture companies to develop, manufacture and market light commercial
vehicles (LCVs), powertrains and technical development. The joint venture
companies will cover the following business areas:
Vehicle manufacturing company - a company with exclusive rights to manufacture
LCV products in India for both the partners.
Powertrain manufacturing company - responsible for the manufacture and assembly of
engines and other drivetrain components to be fitted in the LCV products and for exports.
Manufacturing will be located in India
Technology development company - responsible for the development of LCV products and
related powertrains. The company will be owned 50:50 by the two partners.
17

18.  Ashok leyland plans to foray into the utility vehicles segment with both military
and civil models. Ashok Leyland has indigenously developed a new four-wheeler
light specialist vehicle (LSV). Ashok Leyland’s LSV is a Humvee-type vehicle
and the company will offer a prototype to the Indian army for field trials soon.
 Commercial vehicles manufacturer Ashok Leyland is planning to enter the luxury
bus market with the launch of its top end vehicle `InterCentury Luxura' by the
second quarter of the next fiscal.
Mahindra & Mahindra Ltd
 A wholly owned affiliate of Navistar International Corporation (Other OTC:
NAVZ),signed a joint venture agreement with Mahindra & Mahindra Ltd. of India to
produce diesel engines for medium and heavy commercial trucks and buses in India.
 Mahindra, which was defeated in a bidding contest by rival Tata for Jaguar and Land
Rover, has partnered with Atlanta-based Global Vehicles USA, which will distribute
the vehicles, establish marketing plans and manage a network of hundreds of dealers
that have signed up to sell Mahindras throughout the U.S.
 Mahindra & Mahindra will set up a world class plant in Maharashtra to manufacture
commercial trucks through its joint venture with US-based truck major International
Truck and Engine Corp. This JV will produce medium & heavy commercial vehicles
which would be designed and developed with in-house capabilities.
 The venture will leverage M&M's distribution network to rapidly launch a full range
of M&HCV based, in part, on ITEC's existing product line and adapted for the Indian
market.
 M&M is looking to export 20 per cent of its total produce which could be roughly at
40,000-50,000 vehicles per annum. The company is looking to become a major export
player. The vehicles will be designed and developed with in-house capabilities.
INDUSTRY PROFILE
One of the major global automotive industries in the coming years. A number of
domestic companies produce automobiles in India and the growing presence of multinational
investment, too, has led to an increase in overall growth. Following the economic reforms of
1991 the Indian automotive industry has demonstrated sustained growth as a result of
increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in
India exceed 100,000 units
History
In 1953, the government of India and the Indian private sector initiated manufacturing
processes to help develop the automobile industry, which had emerged by the 1940s in a
nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry
continued to grow at aslow pace due to the many government restrictions. A number of
Indian manufactures appeared between 1970-1980. A number of foreign firms initiated joint
ventures with Indian companies.
Timeline of Indian automobile industry:
• 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves
Company, Mumbai
18

19. • 1901 First Indian to own a car in India - Jamshedji Tata
• 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata
• 1905 Fiat Motors
• 1911 First Taxi in India
• 1924 Formation of traffic police
• 1928 Chevrolet Motors
• 1942 Hindustan Motors
• 1944 Premier Auto Limited
• 1945 Tata Motors
• 1947 Mahindra Motors
• 1948 Ashok Motors
• 1948 Standard Motors
• 1974 Sipani Motors
• 1981 Maruti Udyog
• 1994 Rover Motors
• 1994 Mercedes Benz
• 1994 Opel
• 1995 Ford Motors
• 1995 Honda SIEL
• 1995 Reva Electric Car Company
• 1995 Daewoo Motors
• 1996 Hyundai Motors
• 1997 Toyota Kirloskar Motors
• 1997 Fiat Motors (Re-Entry)
• 1998 San Motors
• 1998 Mitsubishi Motors
• 2001 Skoda Auto
• 2003 Chevrolet Motors (Re-Entry)
Following the economic reforms of 1991, the automobile section underwent
delicensing and opened up for 100 percent Foreign Direct Investment. As urge in economic
growth rate and purchasing power led to growth in the Indian automobile industry, which
grew at a rate of 17% on an average since the economic reforms of 1991. Increased presence
of multiple automobile manufacturers has led to market competitiveness and availability of
options at competitive costs. India was one of the largest manufacturers of tractors in the
world in 2005-06, when it produced 2,93,000/- units. India is also largely self-sufficient in
tyre production, which it also exports to over 60 other countries.
The following are some of the notable Indian automobile manufacturers:
Company Description Product
Ashok Ashok Leyland is a commercial vehicle 18 seater to 82 seater double-decker
Leyland manufacturing company based in buses, 7.5 tonne to 49 tonne in haulage
Chennai, India. In 1948, Ashok Motors vehicles, special application vehicles,
was set up in what was then Madras, and diesel engines for industrial,
for the assembly of Austin Cars. The marine and genset applications.
Company's name changed soon with
19

20. equity participation by British Leyland
and Ashok Leyland commenced
manufacture of commercial vehicles in
1955. Ashok Leyland has six
manufacturing plants: a plant at Ennore
near Chennai, two plants at Hosur
(called Hosur I and Hosur II, along
with a press shop), and the assembly
plants at Alwar and Bhandara.
Gas-cylinder carrier, copied from 3-
wheel Vidal & Sohn Tempo-Werke
(German) Hanseat; Matador, a version
Force Motors, formerly Bajaj Tempo, of Hanomag van and light-truck (1.5
Force Motors
is a Pune-based manufacturer of a tonne payload); Tempo-traveller,
Ltd
number of commercial vehicles Indian version of Daimler-Benz T-1
transporters; Man-Force Trucks,
licensed version of MAN AG trucks;
and UV's copied from Daimler-Benz.
Hindustan Motors is one of the oldest
Trekker(discontinued), Land master
Indian car manufacturers in India. It is
(discontinued), Contessa
perhaps best known for the
Hindustan (discontinued)—5th generation
Ambassador which has remained
Motors Vauxhall Victor, and the Ambassador
virtually unchanged for about 30 years.
—a version of the 1950s Morris
It is still very popular as a taxi and is
Oxford.
widely used by Indian politicians.
The automotive section of Mahindra
started off when a first batch of seventy
Armada (discontinued), Voyager
Mahindra & five Utility Vehicles (UVs) was
(discontinued), Bolero. Commander, CL,
Mahindra imported in CKD condition from
MaXX, Scorpio, and Mahindra and
Limited Willys in 1947. It presently
Mahindra Classic.
manufactures Jeeps along with
agricultural equipment and light trucks.
Maruti Maruti Suzuki (formerly Maruti 800, Omni, Alto, Gypsy, Swift, SX4,
Suzuki Udyog) was formed as a partnership WagonR, Versa, Zen Estilo, Grand
between the Government of India and Vitara, and Swift Dzire.
Suzuki of Japan. It brought India its
first "affordable" car, the Maruti 800. It
is the biggest car manufacturer in India
and especially dominant in the small
car sector. Then it brought out the
20

21. Maruti 1000, made by Maruti Udyog
was the first ever contemporary sedan-
type car launched in India. The car
(which Suzuki sold in other countries
as the Cultus/Swift/Geo Metro with a
1.3 L or 1.6 L engine) was introduced
in October, 1990. Sold at Rs.3.81 lakh,
it was back then the costliest car
released in the Indian market. Then the
company replaced it with Esteem and
from those days on a line of Suzuki
cars rolled out in the Indian market.
Walchand Hirachand started Premier
Automobiles Ltd. (PAL) in 1942. They
assembled De Soto and Plymouth cars
Premier Padmini (discontinued), 118 NE
in 1946 in association with Chrysler
Automobiles (discontinued), and Premier Sigma.
from the United States. They also
manufactured the Premier Padmini
which was a version of the Fiat 1100.
REVA Electric Car Co. is the producer
of the Reva (G-Wiz), an electric car
intended for use as a City car. More
REVAs have been produced than any
REVA REVA (G-Wiz).
other currently selling electric car and
sales are increasing. It is currently the
world's leading electric car
manufacturing company.
Tata Motors, formerly known as
TELCO, is the largest automobile
manufacturer in India and commands
more than 70% of the commercial
vehicle market in India and has also
increased its share of passenger vehicle
market. It was responsible for Indica, Indigo, Indigo Marina, Safari,
Tata Motors
developing India's first indigenous Sumo, TL, and Tata Nano.
vehicle, the Indica. It has proved to be
a success in the market after initial
quality problems. The company also
exports the car to many countries. Tata
owns major stake in Jaguar and Range
Rover.
21

22. Some of the multinational companies in India are:-
Company Description Product
In January 2008, Audi started
production with the Audi A4 and A6 at
Audi A4, A6, A8, R8, Q7, and TT.
its factory in Aurangabad in the state of
Maharashtra.
BMW is a manufacturer of sport
sedans. BMW enjoys good brand
recognition in India. It has set up a
plant in Chennai, Tamil Nadu, to 3 Series, 5 Series, 6 Series, 7 Series, X3,
BMW
manufacture cars locally exclusively and X5.
for the local market with no plans for
export. It set up the plant to circumvent
high import duties.
The Fiat Uno was one of the first
products to be introduced. The Fiat
Palio was later introduced and was
initially a success with its style and ride
comfort coupled with solid build but
has slowly lost its sheen due to low fuel
efficiency. Other models were
introduced such as the Palio Weekend
and Siena. Fiat tried re-branding of the
Uno (discontinued), Palio, Palio Stile,
Fiat Siena to Fiat Petra without much
Siena (discontinued), Siena Weekend
success. It roped in Sachin Tendulkar
(discontinued), Petra (discontinued),
as one of its brand ambassadors. Even
Adventure, Fiat Bravo—sold in
Fiat Michael Schumacher appeared in an ad
collaboration with Tata Motors, Fiat 500
for the Palio. It has entered now into an
—sold in collaboration with Tata Motors,
alliance with Tata Motors to jointly
and Fiat Linea—sold in collaboration
manufacture cars at its plant in
with Tata Motors.
Ranjangaon, near Pune. The facility
will enable the two companies to make
about 200,000 cars per annum, and also
house an engine manufacturing unit
with a capacity of 250,000 units per
annum. The alliance will also see Tata
Motors use Fiat's diesel technology the
1.3 litre multijet diesel engine for its
own vehicles.
22

23. Ford entered India in collaboration with
Escort (discontinued), Ikon, Mondeo
Ford Mahindra & Mahindra in 1995 with a
(discontinued), Endeavour, Fusion, and
Motors plant in Tamil Nadu. The first model
Fiesta.
was the Escort.
Chevrolet has been a recognized brand
in India for several decades. The model
line-up consists of vehicles from
cheaper sister brands like Daewoo.
General Motors initially entered India
Tavera—rebadged Isuzu Panther,
with the Opel brand, but the Opel brand
Forester (discontinued)—rebadged First
was dropped in March 2006 because
Generation Subaru Forester, Aveo—
sales were at an all time low due to
second Generation Daewoo Kalos sedan,
high prices and General Motors wanted
General Aveo UV-A—first Generation Daewoo
to focus more on their Chevrolet brand.
Motors Kalos hatchback, Optra—rebadged
Since the Chevrolet brand was
Daewoo Lacetti, SRV—rebadged
introduced in India, there have been no
Daewoo Lacetti, Spark—formerly
new Opel products. GM's Indian
Daewoo Matiz in India, and Captiva—
operations were originally a JV
recent launch in India.
between Hindustan Motors and GM,
with most of GM's vehicles assembled
at Hindustan's plant in Halol, Gujarat.
Since then, GM India is now wholly
owned by GM.
Honda Siel Cars entered India in 1995. It
sells 4 cars in India—the City, Civic,
Accord, and CR-V. The manufacturing
plant of Honda Siel is located in
Honda Greater Noida. The model of Accord Accord, City, Civic, and CR-V.
sold in India is the 2003 model. The
most inexpensive car from Honda—
The City. The most expensive—The
Honda Accord V6.
Santo—second generation Hyundai Atos,
Accent—second generation Hyundai
Accent sedan, Sonata—sold as the Sonata
When Hyundai entered India, the brand
Embera, Verna—third generation
was virtually unknown in the Indian
Hyundai Accent sedan, Getz—sold as the
Hyundai market. But now Hyundai has good
Getz Prime, Elantra—3rd generation
market because of its models like
Hyundai Elantra sedan, Terracan
SANTRO, Accent etc.
(discontinued), Tucson, i10—brand new
small car, global launch in India in 2007,
and i20.
23

24. Renault- Logan (in partnership with Mahindra and
-
Nissan Mahindra).
Mercedes-Benz has had to cater to the
ever gowning luxury segment in India,
especially after the arrival of the other
luxury German manufacturers. Now,
Mercedes-Benz cars are launched in C-Class, E-Class, S-Class, ML-Class,
Mercedes-
India soon after the worldwide launch SL-Class, CL-Class, SLK-Class, CLK-
Benz
and homologation as opposed to earlier, Class, GL-Class, and CLS-Class.
when Mercedes-Benz had monopolized
the niche Indian market. In 2007 they
launched the SLK-Class and CLS-
Class.
Lancer - Sixth Generation Mitsubishi
Lancer, Cedia—seventh generation
Mitsubishi Mitsubishi Lancer, Pajero—second
-
Motors generation Mitsubishi Pajero, Montero—
third generation Mitsubishi Pajero, and
Outlander.
Škoda Auto is an important car
manufacturer of India. It recently
Škoda launched the Laura; the Octavia still Octavia, Superb, Laura, and Fabia.
continues to exist. Škoda also offers the
Superb in India but it's not too popular.
Qualis (discontinued)—3rd generation
Toyota Kirloskar sells 4 car models in
Toyota Kijang, Camry—7th generation
India. It stopped producing the Toyota
Toyota Camry (the latest generation
Qualis to make way for the Toyota
Toyota Camry), Corolla—9th generation Toyota
Innova, which was launched in India in
Corolla, Innova, and Land Cruiser Prado
2005. The most expensive car from
VX—latest generation Toyota Land
Toyota is the Land Cruiser Prado.
Cruiser (PRADO).
24

25. LITERATURE SURVEY
Product:
Anything offered to a market for attention, acquisition, use, or consumption that might satisfy
a need or want. Product provides the functional requirements sought by consumers.
Product
 Is a bundle of satisfaction that a customer buys.
 Almost always a combination of tangible and intangible benefits
A product may be new to the company, but not to the customers and in reverse a product may
be new to the customers but not to the company.
NEW PRODUCT DEVELOPMENT PROCESS:
 IDEA GENERATION
 IDEA SCREENING
 CONCEPT TESTING
 MARKETING STRATEGY DEVELOPMENT
 BUSINESS ANALYSIS
 PRODUCT DEVELOPMENT
 TEST MARKETING
 COMMERCIALISATION / LUNCING
The product TATA WINGER CARGO on which the research was being conducted is
now at the commercialization stage of the new product development process. The various
features of the product are:-
VARIABLES SUB CATEGORY FEATURES
25

26. Emission BS III
Engine Capacity 1948 cc
Power 90 hp at 4300 rpm
Torque 190 Nm at 2000-3000rpm
Fuel Diesel
Driveline Clutch Friction plate 215mm
Gear box 5 forward and 1 reverse
Axle FWD
Power assisted rack and
Steering/Brakes Steering pinion
Turning radius 6.4 m
Front brakes Disc with twin pot caliper
Rare brakes Drum with LSPV
hydraulic,dual
Service brakes circuit,vacuum assisted
McPherson strut with coil
Suspension Front spring
Double parabolic leaf
spring with hydraulic telescopic
Rear shock absorber
Dimensions Wheel base 3200 mm
Overall width 1905 mm
Overall length 4920 mm
Overall height 2445 mm
Overhang front 940 mm
Overhang rear 780 mm
Track front 1560 mm
Track rear 1526 mm
Min ground clearance 165 mm
Cargo area volume 7.8 cu.m
Cargo box
dimension(LxWxH)mm 2755x1650x1900
Approach angle 19o
26

27. Departure angle 17o
Weights Gross Vehicle weight 2850 kgs
Pay load 1200 kgs
Misc Tire 185 R 14 LT, 8 PR
Fuel tank 60 L
Mileage 10.5 kmpl
Some of the benefits of the product are:-
 Monocoque body
 Large Cargo area.
 High power to weight ratio
 BS III engine for an eco-friendly drive
 Safe drive
 Driving comfort
 Good suspensions to handle fragile goods
 Car like passenger comfort
 Stylish next generation looks
 Low ground clearance for easy loading and unloading
 Best value for money
PRICE
Pricing Policies:
If a firm has the power in its market to set its own price, it can adopt a pricing policy.
 Market penetration pricing: setting prices of products relatively low compared to those
of similar products
 Destroyer pricing: Deliberate price cutting or offer of ‘free gifts/products’ to force
rivals (normally smaller and weaker) out of business or prevent new entrants
 Follow-the-leader pricing: A pricing strategy adopted by firms which copy the market
leader's prices
 Skimming: High price, Low volumes, Suitable for products that have short life cycles
or which will face competition at some point in the future.
TATA WINGER CARGO uses the the market penetration pricing policy. The price of
WINGER CARGO is set to be 5.72Lakhs(Ex-showrom).
PLACE
What is a Marketing Channel?
 This is a set of interdependent organizations involved in the process of making a
product or service available for use or consumption.
Channel functions
 Gathers information on customers, competitors and other external market data
 Develop and disseminate persuasive communication to stimulate purchases
 Agreement on price and other terms so that transfer of ownership can be effected
27

28.  Placing orders with manufacturers
 Acquire funds to finance inventories and credit in the market
 Assume responsibility of all risks of the trade
 Successive storage and movement of products
 Helps buyers in getting their payments through with the banks
 Oversee actual transfer of ownership
Types of intermediaries
 Distributors
 Wholesalers
 Retailers
 Department stores
WINGER CARGO has only distributors as intermediaries.
PROMOTION
Promotion is only a means of communication about the product without the motive of
persuading for that act which a customer do not want to do.
In marketing terms, the role of promotion is to inform, remind and persuade existing or
prospective customers to accept, resell, recommend or use of a product, service and ideas.
What is Promotion mix?
Promotion mix consists of careful blending of advertising, personal selling, sales
promotion, public relations, publicity and propaganda; to accomplish the marketer’s
promotional objectives.
When deciding the promotional mix, the management should consider:-
 The target audience/ Market size and concentration
 The objective of the promotional effort.
 The nature of the product.
 The stage of the product’s life cycle.
 The funds available for the promotion/ Resource
 Availability and the cost of each promotional tool.
 Customer information needs
Elements under Promotion mix
a) Advertising
b) Sales Promotion
c) Personal Selling
d) Public Relations
e) Publicity
f) Propaganda
For WINGER CARGO advertising, public relations and publicity was carried out. A
consistent grass root interaction with the customers was also done for awareness generation,
conversion and sustenance.
The various tasks carried out are:-
• The target levers were first identified such as:- Courier, Logistics, FMCGs,
Bakeries, Newspaper circulation departments, Pharmaceuticals, Cash van
companies, Packers & Movers.
• Database regarding the potential customers from each segment was prepared.
28

29. • An audio visual presentation was prepared to be used for showing the
customers.
• Demo was given to each segment for a touch and feel experience.
• Leaflets were designed.
• Customers were shown the way the can also carry out the branding of the
organization with the help of the vehicle.
OBJECTIVE
 Identify the levers
 Recognize the potential customers from each lever
 Customer awareness regarding the product(WINGER CARGO)
 Determinacy of the taste and preference of the customers lever wise
 Measurement of the potentiality of the targeted group
 Branding of the product
 Understand the requirements of the customers
 Upgradation of customer’s preference.
 To understand the market potentiality for TATA Motors.
 To determine the acceptable price of the product.
 To determine the requirements and needs of the potential customers.
29

30.  To know what people perceive and thinking about Tata Motors and its products.
 To find out the satisfaction level of people.
SCOPE OF THE PROJECT
In the present world of changing technology and turbulent environment, a firm has to
constantly understand the future demand and latest trend in market. For this, they should be
like an open system so that they can change themselves according to the environmental
changes, only then a firm can survive.
I did marketing for TATA MOTORS for two months. I collected data by
interviewing various customers for the fulfillment of my market research.
The extent of my project is:-
• Consumer preferences are found out which would help the organization for further
development of strategies, enhancement of the present strategies and new product
development.
• Database of the budding customers is being prepared which would prove profitable in
the near future.
• Customer’s attitude towards the brand is identified.
• Brand’s position in the market is known.
30

31. • All the competitors are recognized. This would facilitate the organization in making a
proper SWOT analysis.
• Market share of the competitors are found out that would help the organization in
building up further strategies to gain market share.
METHODOLOGY
Methodology is defined as
1. "the analysis of the principles of methods, rules, and postulates employed by a
discipline" or
2. "the development of methods, to be applied within a discipline"
3. "a particular procedure or set of procedures
Methodology refers to the rationale and the philosophical assumptions that underlie a
particular study.
SOURCES OF DATA
A. Primary data:- primary data were collected through a questionnaire designed
separately for customers. A pilot survey was conducted to test the utility of the questionnaire
and necessary changes being made.
B. Secondary data:- secondary data was collected from
i. Consortium Automobiles
ii. www.justdial.com and www.google.com
MODE OF DATA COLLECTION
The requisite data was collected using two methods i-e
31

32. i. Questionnaire:- a printed questionnaire was given to each customer with a request
to answer it and return it.
ii. Survey:- Personal interview was done to record the likes and dislikes of the
customers.
RESEARCH INSTRUMENT:- Printed questionnaire
SAMPLE SIZE:- 77
SAMPLING TECHNIQUE:-Simple random sampling and judgmental sampling.
SAMPLING AREA:- Bhubaneswar.
METHODS OF DATA ANALYSIS:-
• Bar graphs
• Pie-charts
LIMITATIONS
• The study is confined to Bhubaneswar only.
• There is possibility of sampling errors in the study.
• The responses of the consumers may not be genuine.
• The questions included in the questionnaire may not be comprehensive.
• Continuous and reliable information was not available.
• Some of the information was confidential so much information was not revealed.
• The time span of the survey was short and hence only major aspects were considered.
• Availability of the respondents amidst their busy schedule did not permit detailed
study.
• Lack of professional approach since researcher is a student.
• Limited knowledge of the researcher in the field of research may lead to interpretation
errors.
32

33. 33

34. LEVERWISE OWNERSHIP ANALYSIS OF THE TARGETED CUSTOMER
GROUP
Owners(in %) non owners(in%)
COURIER AND LOGISTICS 66.6 33.4
PACKERS AND MOVERS 100 0
MARINE EXPORTERS 100 0
CATERING SERVICES 50 50
F.M.C.G 77.7 22.2
PHARMACEUTICALS 40 60
LOCAL TRANSPORTERS 100 0
BAKERY 66.6 33.3
CASH VAN COMPANIES 100 0
F.M.C.D 22.2 77.7
INTERPRETATION
Most of the customers contacted use their own vehicles for their business. Only few
segments hire vehicles.
34

35. ANALYSIS ON TYPE OF CARGO BOX USED BY TARGETED
CUSTOMER
OPEN CLOSED
CONTAINER(in%) CONTAINER (in
%)
COURIER AND LOGISTICS 25 75
PACKERS AND MOVERS 83.3 16.7
MARINE EXPORTERS 0 100
CATERING SERVICES 50 50
F.M.C.G 62.5 37.5
PHARMACEUTICALS 16.7 83.3
LOCAL TRANSPORTERS 80 20
BAKERY 0 100
CASH VAN COMPANIES 0 100
F.M.C.D 77.7 22.2
INTERPRETATION
It was found that the preference of the customers for open container vehicle or closed
container vehicle depends upon their type of business. But mostly closed container bodied
vehicle is preferred so that the goods could be protected from certain natural calamities like:-
rain, hot sun etc. The cash van companies, confectionaries, marine exporters and the
pharmaceutical distributors make use of only closed container bodied vehicles.
35

36. MAIN CONCERNS OF CUSTOMERS FOR DELIVERY VAN
FEATURES ACCEPTANCE (in %)
PRICE 20
FUEL EFFICIENCY 38
LOAD CAPACITY 27
WARANTEE 8
WATERPROOFING 7
INTERPRETATION
Customer’s primary importance is for fuel efficiency then loading capacity and then to
price. The others are of secondary importance.
36

37. Customer perception about delivery van
STONGL MILDL
Y MILDLY NEITHER Y
DISAGR DISAGR AGREE NOR AGRE STRONGL
EE EE DISAGREE E Y AGREE
VOLUME CAPPACIITY 15 19 0 8 38
LOAD CAPACITY 0 16 0 20 44
BUYING DECISION
INFLUENCED BY FINAL
PRICE 30 28 0 10 12
BUYING DECISION
INFLUENCED BY
AVAILABILITY OF EASY
FINANCE 0 0 5 5 70
NO TIME RESTRICTIONS 0 0 20 30 30
HIGHER MILEAGE 0 0 0 0 80
ELEGANT LOOKING 0 0 40 20 20
GOOD SUSPENSION 0 0 13 10 57
EXCELLENT AFTER SALES
SERVICE 0 0 0 4 76
INTERPRETATION
Higher mileage, excellent after sales service, availability of easy finance etc
are some of the features to which the customers strongly agree to.
37

38. FEATURE ACCEPTABILITY of winger cargo
LOADING FUEL LOADING ECO-
AREA PRICE EFFICIENCY VOLUME FRIENDILY
LIKE 58 7 49 25 77
DISLIKE 22 73 31 45 3
INTERPRETATION
From the graph it is found that WINGER CARGO is disliked by people because of its
high price. The BSIII engine makes it very eco-friendly. The customers appreciate the loading
area of the vehicle.
A STUDY OF MARKETING STRATEGIES OF SWIFT
AZN-08-10-DIMAT
-1-
A STUDY OF MARKETING STRATEGIES OF SWIFT
AZN-08-10-DIMAT
-2-
DECLARATION
I Ali Zuhair Naqvi, Master of Business Administration (MBA) 3rd Semester student
from Disha Institute of Management And Technology(DIMAT) hereby declare that the
38

39. Seminar Report Titled³Ma r k etingstr at egi es of Swift ´ is a genuine work done by me & all
the information collected is authentic to the best of my knowledge.
I hereby declare that this report is the record of authentic work carried out byme during the
academic year 2009-2010.
Ali Zuhair Naqvi
`
MBA 3rd Sem.
Section ± µA¶
A STUDY OF MARKETING STRATEGIES OF SWIFT
AZN-08-10-DIMAT
-4-
INDEX
Sl. No.
Particulars
Page Number
1.
Introduction
5
2.
Indian Automobile Industry
5
3.
History
5
4.
Overview
7
5.
An Introduction to Maruti Udyog Ltd.
15
6.
Products of Maruti Suzuki
17
7.
Competitors of Maruti Udyog Ltd.
18
8.
Competitors of Maruti Suzuki Swift
20
9.
Marketing Mix
21
10.
Swot Analysis
25
11.
Objectives of the Study
32
12.
39

40. Limitations
33
13.
Conclusions & Recommendations
33
14.
Bibliography
34
15.
Weblography
34
VOLUME VS PRICE ANALYSIS OF COMPETITORS OF WINGER
CARGO
Vehicle TATA Force Maruti Bolero Mahindra Bolero Ace Super TATA
Winger Tempo Omni maxi Max Pickup HT Ace 207 DI
Cargo Traveller cargo truck Pickup FB
volume 8.6 8.6 1.5 4.6 6.5 6.4 4.6 5.8 6
(Cu.
M)
Price 57281 625000 23126 40085 505778 55933 33750 393500 514112
1 9 0 9 5
40

41. INTERPRETATION
When price and volume is compared then it is found that WINGER CARGO is
economic in comparison to its competitors. It has a volume of 8.6 cu.m and th price is around
572811(ex-showroom).
ANALYSIS OF FUEL EFFICIENCY VS VOLUME OF CARGO BOX
vehicle maximoMah..
wingerTATA
pickupBolero
Force trumph
Max pickup
Bolero truck
Omni cargo
TATA 207
TATA 407
Force m40
Max truck
Force van
Super ace
Tata ace
Volume 1.5 4.5 4.8 5.1 5.85 5.75 5.3 5.9 6.8 6.58 7.3 8.7 8.7 8
(in cu.m) 9
Fuel 14 18 14 14 14 15 18 20 13 14 16 12 9 8
efficiency
(in kmph)
41

42. INTERPRETATION
The customers interpreted that the Force m40 is the ebst in the market when uel and
cargo space is compared.
LEVERWISE MODE OF OPERATION OF LOGISTICS ANALYSIS
ACE
TATA
407
TATA
ERS
3WHEEL
709
TATA
PICK UP
MAH.
OMNI
BOLERO
207
TATA
TRUKK
APE
FORCE
ES
VEHICL
HEAVY
COURIER AND 10.
LOGISTICS 47.5 26.3 10.5 0 5.2 5 0 0
PACKERS AND
MOVERS 66.6 16.6 16.6 0 0 0 0 0
MARINE EXPORTERS 10 30 0 30 20 10
CATERING SERVICES 50 50
19.
F.M.C.G 27.7 19.4 11.1 4 2.7 2.7 2.7
PHARMACEUTICALS 33.3 33.3 33.3
LOCAL
TRANSPORTERS 33.3 16.6 50
33. 16. 16.
BAKERY 33.2 2 6 6
CASH VAN
COMPANIES 20 10 20 10 30
F.M.C.D 50 22.2 11.1 11.1 5.05
100%
90% HEAVYVEHICLES
80% FORCE
70% APETRUKK
60% TATA 207
50% BOLERO
40% OMNI
30% MAH. PICK UP
20% TATA 709
10% 3WHEELERS
TATA 407
0%
TATA ACE
42

43. INTERPRETATION
TATA Ace is being widely used in the market. This shows that there is a competiton
within the brand. Packers and movers are the highest user of the vehicle TATA Ace.
ACCEPTANCE OF WINGER CARGO
ACCEPTANCE( IN NO.)
LIKE 43
DISLIKE 32
NOT INTERESTED 5
INTERPRETATION
There were very few not interested customers but most of the customers visited liked
winger cargo because of its elegant looks, good suspension, user friendliness etc. there were
some customers who disliked winger cargo and the reason was found to be higher price and
in comparison lower mileage.
43