REPORT ON CRM OF TATA MOTORS

SUBMITTED BY: PAVAN MAHAWAR SURESH KAPOOR RITESH ASHIKA SINHA NEHA CHAUHAN HIMANI MURRIA

ABOUT THE TOPIC

To understand the real business scenario about the practice of CRM in Indian Automotive industry & then compare it with TATA motors in passenger cars. The automobile industry in India is the tenth largest in the world with an annual production of approximately 2 million unitsis expected to become 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.

ABOUT TATA MOTORS

Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores in 2007-08. 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 worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 23,000 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 companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). It plays active role in community development, serving rural communities adjacent to its manufacturing locations.

BUSINESS STRATEGY & CRM

Three key phases are present here: Customer Acquisition. Customer Retention. Customer Extension. Customer Acquisition: This is the process of attracting their customer for their first purchase. It means they have acquired their customer. Customer Retention: Their customer returns to them and buys for a second time. They keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service. Customer Extension: Their customers are regularly returning to purchase from them. They introduce products and services to their loyal customers that may not wholly relate to their original purchase. These are additional supplementary purchases. The goal is to retain them as customers for the extended products or services.

Three contextual factors are present here: Marketing Orientation. Value Creation. Innovative IT.

Marketing Orientation: It means that the whole organization is focused upon the needs of the customers. Customer needs are addressed by the Three Levels of a Product meaning the organizations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as warranty and customer service. Value Creation: It aims on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage. Innovative IT: It means that the Information Technology in their organization must be up-todate. It should be efficient, speedy and focus upon the needs of their customers. IT is vital to CRM and its success. CRM software collects data of consumers and their transactions. Huge databases store data of individuals. CRM means that an organization is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organizations will track individuals and try to market products and services to
them based upon similar buyers behaviour seen in other individuals.

TATA MOTORS INITIATIVES:

Tata Motors goal is to achieve success in different phases of its own before moving forward. Phase 1, currently under way, focuses on capturing customer and vehicle data and automating routine tasks. Phase 2 will focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3 will focus on tuning the system and delivering additional value-added services to customers. Tata Motors began standardizing its customer-facing business processes companywide, laying the foundation for stronger dealer relationships, improved operational efficiency, effectiveness and a better customer experience. TATA MOTORS believes in 'Customer is THE KING', and also knows well how to make them feel One. They have an extensive follow up programme and prompt service. This helps them to change their strategies and customize their service to fit developing customer needs. For this purpose, they always request the customers to fill in their feedback form that follows the service/repair visit. If a low score is received on their feedback form, they would go out of the way to apologize for the error. Simultaneously, they provide technicians who visit their home place in order to attend the issues and rectify them to their satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved Tata Motors provides very well after sale services to its customers and also provides its long term customers either with stable prices or lower price increases as compared to the new customers. TATA motors provide financial incentives and rewards to the customers who bring more business to their service station. TATA Motors provides free of cost servicing to customers having Tata cars within a two year warranty time period. TATA motors also offer an extended paid warranty program marketed under the brand, Forever Yours for the third and fourth year after purchase. The extended warranty program helps in strengthening contact with the customer and also increase the revenue generated from sale of spares, accessories and automobile related services. When Tata Motors suffered a record loss of nearly Rs 500 crore in 2000, it searched for ways to become a more efficient operation. An online customer relationship management system and a dealer management system were among the ideas that came up, and the first took off in 2003.

CRM OF TATA MOTORS

Tata Motors implemented Oracle's Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Siebel Automotive has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. By tightly integrating Siebel Automotive and its dealer management system, TATA has streamlined transactions and ensured that

dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls. Tata Motors also liked the fact that Siebel Automotive provides multi organization support, can be deployed easily over the Internet, and provides robust partner management capabilities, ideal for Tata Motors with its farflung dealer network. Siebel Automotive has simplified training of its sales force also helped dealers respond to customer queries regarding vehicles that arent in a dealers stock, but which can be ordered directly from Tata Motors. Within the first year of implementing the solution, we are targeting improvements of 5 to 10% in customer satisfaction, revenue growth, operating cost reduction, and productivity gains, Siebel has played a major role in getting us to where we are today.

SUGGESTIONS
Need to put in processes and systems to gather more information and data about who your customers are, what they do and how they think. Customer knowledge can be used to give customer specific offer on purchase of second vehicle in family. Services such as pick and drop, on-road service, should be provided at TATA service station, which are common in other companies. Many organizations operating in automobile market still do not differentiate their CRM activities at the segment level. Their unrefined use of resources not only leads to wasted investment but can cause annoyance among customers who are either being oversupplied or undersupplied with attention.

CONCLUSION
Tata Motors has proven excellence over the years through its technologically advanced products, market expansion, customer satisfaction and increasing sales. Tata Motors consistently strives to increase shareholder value, build stronger customer relations and work with its business partners to provide the best value for money. Tata Group, the division has built a strong business over the past 60 years and continues to show strong financial results. The continual improvement and introduction of new products in the market have allowed it to successfully enter as well as dominate the automobile industry in India. With increasing sales, employees, product offerings, manufacturing facilities and distribution centres along with expansion outside India, the company seems to have a promising future.