Name: Ansh Vijh

Roll No. 5904

Class: SYBMS A

TITLE
To study the scope of companies in Indian rural market with respect to Tata Motors.

INTRODUCTION TO TOPIC
Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company)
is an Indian multinational automotive manufacturing company headquartered in Mumbai,
Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks,
vans, coaches, buses, construction equipment and military vehicles. It is the world's 17th-largest
motor vehicle manufacturing company, fourth-largest truck manufacturer, and second-largest bus
manufacturer by volume. Tata Motors Limited (TML), Indias largest automobile company, identified
the need to target rural markets aggressively, to accelerate sales growth, as well as maintain its
leadership position in the commercial vehicles segment. With over 70% of Indian population residing
in rural markets, they are clearly the battleground of future for TML as well as most other marketing
companies in India.

OBJECTIVES OF STUDY
To study the strategies for success in rural Indian market.
To study the barriers to scale in rural Indian market.
To study the positive and negative impacts of companies in rural Indian market.
RESEARCH METHODOLOGY:

RESEARCH DESIGN: The present study is an exploratory and descriptive type of

research study. The study aims to find out the factors influencing customers Life Insurance
investment decisions and their preferences at the time of policy buying decisions.
SAMPLING TECHNIQUE: Probability (Simple Random)
SAMPLE SIZE: 30
SAMPLE: The data for the study has been collected from both primary and secondary
sources. The primary data has been collected through a well-drafted interview. The secondary
data has been collected from Insurance Journals and Insurance website.
DATA COLLECTION: The data collection method used to obtain the desired information
from primary sources has been through direct interview, and questionnaire has been used as
an instrument.

RATIONALE OF THE STUDY

For many businesses, Indias rural markets hold the key to future growth. Companies that recognize
this enormous opportunity are stepping up efforts to gain a strong foothold in these markets. Yet the
high costs required to serve rural consumers make it difficult for companies to establish a profitable
presence at scale.

HYPOTHESIS
Tata Motors is a leading brand among the automobile manufacturers and has a strong market share.

ANALYSIS AND DESCRIPTION

Companys dealer network, which was pre-dominantly urban and semi-urban in nature
(located typically in towns/ habitations with population of 100,000+), was seen as a key
bottleneck for growth in these rural markets.
Underemployed and unemployed youth aged between age group 21 and
30, who saw running an SCV as a viable means of self-employment.
Shopkeepers, small businesses and schools that could use Tata vehicles
for captive and third-party transport of goods, students or people within a
1050 kilometre radius.

CONCLUSION AND SUGGESTIONS

CONCLUSION: The results have been significant and fast. Building and leveraging a network of
rural youth and existing network of rural corporates provided quick access to rural markets. Currently
deployed in six states, the rural business has seen addition of over 20 percent to TMLs SCV vehicle
volumes. This is now being rolled out nationally and has an incremental annual potential of over
70,000 vehicles and US$500 million in revenue.
SUGGESTIONS:
While the primary purpose of the program was to look at rural markets as a profitable business
proposition, leveraging rural youth as sales agents and creation of rural entrepreneurship opportunities
through vehicle ownership as well as cascading impact on the rural economy through demand for
service, mechanics, fuel may further help in the success of the organisation.

LIMITATIONS OF STUDY
Dealer coverage was historically limited to towns/ habitations where the dealer had presence
and at best about 50 kms around them.

Lack of direct access also meant, there were limited structured attempts to understand, define
and educate target customer segments in rural geographies.

BIBLIOGRAPHY
http://www.accenture.com
www.scribd.com
www.indianresearchjournals.com
www.slideshare.com