SUMMER TRAINING REPORT SUBMITTED TOWARDS

THE PARTIAL FULFILLMENT OF POST GRADUATE

DEGREE IN INTERNATIONAL BUSINESS

REVIEW OF
CUSTOMER SATISFACTION
AT THE SERVICE STATION
OF TATA MOTORS

SUBMITTED BY:
AMIT KRISHNA
Roll No. : A1802007C06

INDUSTRY GUIDE FACULTY GUIDE

Mr. RANVIJAY KANT Mr. NISHANT KUMAR RAI
Marketing Manager
Tata Motors, Jamshedpur.

1
 AMITY INTERNATIONAL BUSINESS SCHOOL
NOIDA
AMITY UNIVERSITY – UTTAR PRADESH

TO WHOM IT MAY CONCERN

This is to certify that DUBBHI CHOUDHARY, a student of Amity

International Business School, Noida, undertook a project on
“REVIEW OF CUSTOMER SATISFACTION AT THE SERVICE
STATION OF TATA MOTORS” at MITHILA MOTORS
JAMSHEDPUR
from 8/5/2008 to 8/7/2008.
Mr.AJIT KUMAR has successfully completed the project under the
guidance of Mr. RAVI KANT. He is a sincere and hard-working
student with pleasant manners.

We wish all success in him future endeavours.

Signature with date

RAVI KANT
MARKETING MANAGER
TATA MOTORS, JAMSHEDPUR

2
3
 CERTIFICATE OF ORIGIN

This is to certify that Mr. Dubbhi Choudhary, a student of Post Graduate

Degree in MBA – IB (2007-09), Amity International Business School,
Noida has worked in the USAGE OF SPECIAL SKILL AND TOOLS IN
MARKETING FOR BETTER EFFICIENCY OF PRODUCT AND
CUSTOMER SATISFACTION REVIEW, under the able guidance and
supervision of Mr. Ranvijay Kant, Marketing Manager, Mithila Motors,
Jamshedpur.
The period for which he/ she was on training was for 8 weeks, starting from
8/5/2008 to 8/7/2008. This Summer Internship report has the requisite
standard for the partial fulfillment the Post Graduate Degree in International
Business. To the best of our knowledge no part of this report has been
reproduced from any other report and the contents are based on original
research.

Signature Signature
NISHANT K. RAI DUBBHI CHOUDHARY

4
 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide

Mr. RANVIJAY KANT, Marketing Manager, Tata Motors,
Jamshedpur for his able guidance, continuous support and
cooperation throughout my project, without which the present
work would not have been possible.

I would also like to thank the entire team of Tata Motors,

Jamshedpur, for the constant support and help in the successful
completion of my project.

Also, I am thankful to my faculty guide Prof.Mr. Nishant Kumar

Rai of my institute, for his continued guidance and invaluable
encouragement.

Signature
DUBBHI CHOUDHARY

5
 TABLE OF CONTENTS
Chapter No. Subject Page No.

Ch. 1.0 Executive Summary…………………. 6

Ch. 2.0 Research Methodology……………… 7-11

2.1 Primary Objective(s)
2.2 Hypothesis
2.3 Research Design
2.4 Sample Design
2.5 Scope of the Study
2.6 Limitations

Ch. 3.0 Critical Review of Literature……….. 12-13

Ch. 4.0 Company Profile ……………………. 14-26

4.1 Industry Profile
4.2 Swot Analysis

Ch. 5.0 Data………………………………….. 27-28

5.1 Collection
5.2 Primary Data
5.3 Secondary Data

Ch. 6.0 Findings & Analysis…………………. 29-46

Ch. 7.0 Recommendations…………………… 47-49

Ch. 8.0 Bibliography…………………………. 50

Ch. 9.0 Annexure…………………………….. 51-58

9.1 Tables
9.2 Graphs

Ch. 10.0 Case Study...…..................................... 59-66

Ch. 11.0 synopsis of the project……………….. 67

6
 CHAPTER 1
EXECUTIVE SUMMARY

The automotive industry is at the centre of India’s new global dynamics. TATA
MOTOR’S Commercial Vehicle Business Unit (CVBU) is a division of TATA
MOTOR’S, having a TATA MOTOR’S product range covers Medium and heavy, light
commercial vehicle, small commercial vehicle and buses.

As the project title “CUSTOMER SATISFACTION SURVEY” Suggests that the project
report is all about the technical and the commercial aspect of the company. While doing
survey I realize that the things learnt from the books are quite different from the actual
practice in field.

The body of the project report takes a micro level approach, using each step of the
marketing research process. The main source of analyzing the data is through
questionnaires. A complete analysis has been done in research methodology part to find
the advantages and disadvantages of the company.

A complete Analysis of variance has been done to find the kind of satisfaction Tata
Motor’s Service Stations provides to their Customers.

The best part of this project report is the analysis and interpretation of the various
services provided by Service Station. This part directly shows whether the customers are
satisfied with the products and services of Tata Motors and criticizes the ill part of the
company.

At the last part I wrap up the project with suggestion and recommendations to enhance
the future growth and prospects of the company.

7
 CHAPTER 2
RESEARCH METHODOLOGY

Objective of the study

2.1 Primary objectives

 To ascertain the level of satisfaction among the Tata Motors vehicle owners
(commercial vehicles) with respect to services provided by authorized service
stations.
 To evaluate critically market acceptance of Tata Motors (CVBU) products.
 To analyze the price sensitivity in various spares.
 To find out the customer’s perception on different attributes through
questionnaires.

Secondary objectives

 Consumer perception towards the products of Tata Motors(CVBU)

 Advice to change some attributes of Service Station.
 To understand the potential market.
 What are the ways to retain the existing customers of commercial vehicles to
service station

2.2 SCOPE OF THE STUDY

As the title of the project “CUSTOMER SATISFACTION SURVEY ’’ suggests that the
project is divided into two major parts:

8
 1) Technical
2) Commercial

The scope of the technical part is limited to the company premises only. Various
raw materials are imported from our own Domestic and foreign market also. The research
and development department of TATA MOTORS is constantly attempting to lower the
cost of some of the models.

The scope of the commercial part is very wide. The geographical area covered is
JAMSHEDPUR. The time period assigned to me was complete two months. The
authorized service station covered for the survey was MITHILA MOTORS PVT. LTD.

Basically there was a questionnaire to which the respondent has to respond.

2.3 Research Design

All research approaches can be classified into three general categories:

1) Exploratory Research
2) Descriptive Research
3) Casual Research

Since data collection method is from surveys, hence Descriptive type of research is used
for analysis of the data.
The study was descriptive in nature because it depicts characteristics or functions of the
market. It describes the number, distribution and socio-economic characteristics of
potential customers for the product.

Type and collection of data used

Basically there are two types of data which are used in marketing research process.

9
1. Primary Data: the methods of collecting primary data are as follows,
A: Observation
: Interview
C: Telephonic Interview
D: Questionnaires

Interview: Interview is one of the chief means of collecting data in research process.
Interview may be defined as a systematic conversion initiated for a specific purpose and
focus on certain planned content areas. It is not a simple two way conversion between an
investigator and an informant.
Surveys: There are three main types of surveys, depending upon the method of data
gathering used: personal interview surveys, telephone surveys and mail surveys.

Advantages of survey: Following are the main surveys:

1. Wider Distribution
2. Less Distribution Bias
3. Thoughtful Reply

The primary data under processing is collected from both direct filling the questionnaires
and through telephone interviews also.

2. SECONDARY DATA: The data once collected by one person become the secondary
data if used by another person.

Sources Of secondary data: The various sources of secondary data are as follows:
1. Bibliographies.
2. Directories.
3. Newspaper.
4. Journals.
5. Websites

10
 6. Television
The secondary data like information of existing customers, information about company’s
profile product line and sales figure has been taken from company’s website.

2.4 Sampling

A sample is a part of the population. The sample should be representative of the

population and the information obtained must be reliable. In any survey where reliability
is desired , the error and variance have to be controlled , measured , and interpreted.
The sample size is of one hundred for existing customers.

The type of population selected is the TATA MOTORS service station named MITHILA
MOTORS PVT. LTD at JAMSHEDPUR.

Sampling Technique: Non – probability judgment sampling

Statistical tools used

The list of statistical tools used while analyzing the data is as follows:

 TABLES
 BAR CHARTS
 PIE CHARTS
 OPERATING ECONOMY
 TEST OF HYPOTHESIS

11
2.5 Limitations of the study

Every study conducted may have certain shortcomings and unfortunately ours is also a
similar case. A few errors have crept in despite our best effort to avoid them but it is
expected that still our study and findings are very much relevant.

 An error may have been due to the samples taken not conforming to the actual
population: this is because the sample is a convenience sample.
 Personal bias or error of the interviewer might also have crept in: some cases,
while interpreting the respondents.
 Certain questions which are not properly responded by the responders.
 Some of the respondents have not responded totally.

12
 CHAPTER 3
CRITICAL REVIEW OF LITERATURE

Presenting a tempered vision of the technological future, Tata Motors MD

As increasing liberalisation norms transform the Indian economy, the transportation

sector is set for explosive growth. The personal and public transport segments are still in
an early stage of growth, but you don't need a crystal ball to see the sweeping changes
waiting to happen.

The government's massive infrastructure development programme is connecting

thousands of towns and villages all over the country. The building of roads where dirt
tracks existed before is spurring communication and commerce. Suddenly, cars, buses
and scooters are plying where only bullock carts used to. A whole new world of
opportunities is opening up for our rural communities.

Rapid growth will inevitably bring problems in its wake. This doesn't mean we should
curtail growth; instead, if we have to bring about an improvement in the quality of life of
our people, we must remove constraints. The challenge will be to ensure there is greater
discipline in the development process, more certainty.

Strategies for tomorrow

Looking ahead, there are strategic issues that Tata Motors need to address. One such
discussion involves moving from low-cost production to high-quality products. Frankly,
in today's environment, I don't see a conflict between the two. I would argue that it's not
an either/or situation at all, for I can be a low-cost producer and yet steal a march over
others through innovation.

13
In fact that's how the strategy is unfolding for us. The equation that a good vehicle can be
made at a lower cost is emerging quite clearly with advances in technology and
development of appropriate business models and product packages. A case in point is
Ace, our small truck, launched in 2005. As a four-wheeler, it is positioned against the big
three-wheelers, and gives customers what they want, and at a competitive price, while
meeting safety, emission and comfort norms. The Ace is doing pretty well.

Similarly with the Tata Motors low-priced car. It will have all the features essential for
comfort and safety. By applying effective technologies and innovative solutions, we will
try and ensure that it remains a low-priced vehicle, without compromising on its quality.

As economies liberalize, competition will only stiffen, be it in India or elsewhere.

Compared to us, there is a gap in quality and performance that works in favour of foreign
brands; on the other hand, there is a gap in cost that is not to their advantage.

What foreign companies would like to do is to retain that positive gap in performance and
quality, and reduce the gap in cost. Companies like ours, which have an advantage in cost
but an adverse gap in quality and performance, will aim to close the gap in quality and
retain the gap in cost.

These will be the two key strategies for the future. I feel that companies like Tata Motors,
which have the cost factor on their side, will have an advantage. Time alone will tell if I
am right!

Steps ahead

But technology and cost competitiveness are only one part of the story. It is the principles
with which the Tata Group does business that will be the real differentiator. Our
commitment to the communities, the countries we operate in, sets us apart from other
multinationals.

As the largest automobile company in India, Tata Motors has to keep at least half a step
ahead in an evolving market in order to maintain its leadership position. I am confident

14
our company will adapt to expanding opportunities in the market even as they emerge,
and maintain its leadership.

CHAPTER 4
COMPANY PROFILE

COMPANY’S STATEMENT

VISION STATEMENT

“To be a world class corporate constantly furthering the interests of all its stakeholders.”

MISSION STATEMENT

SHARE HOLDERS:

To consistently create share holder value by generating return in excess of weighted

average cost of capital [WACC] during the upturn and at least equal to weighted average
cost of capital [WACC] during the downturn of the business cycle.

CUSTOMERS:

To strengthen the TATA brand and create lasting relationship with the customers by
working closely with business partner, to provide superior for money over the life cycle.

EMPLOYEES:

To create a seamless organization that incubates and promotes innovation, excellence and
the TATA core values

COMMUNITY:

To proactively participate in reshaping country’s economic growth. To take a holistic

approach towards environmental protection.

TATA MOTORS Limited is India's largest automobile company, with revenues of Rs.20,
483 crores (USD 4.7 billion) in 2004-05. It is the leader by far in commercial vehicles in
each segment, and the second largest in the passenger vehicles market with winning

15
products in the compact, midsize car and utility vehicle segments. The company is the
world's fifth largest medium and heavy commercial vehicle manufacturer.

The company's 22,000 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 3 million TATA vehicles ply on Indian roads, since the first rolled
out in 1954. The company's manufacturing base is spread across Jamshedpur, Pune and
Lucknow, supported by a nation-wide dealership; sales, services and spare parts network
comprising about 1,200 touch points.

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 a global automotive
company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's
second largest truck maker. The rechristhinied TATA Daewoo Commercial Vehicles
Company has already begun to launch new products. In 2005, TATA MOTORS acquired
a 21% stake in Hispano CARROCERA, a reputed Spanish bus and coach manufacturer,
with an option to acquire the remaining stake as well. Hispano’s presence is being
expanded in other markets.
These acquisitions will further extend TATA MOTORS' global 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, Australia,
South East Asia and South
Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia
and Senegal.

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.

16
With 1,400 engineers and scientists, the company's Engineering Research Center,
established in 1966, has enabled pioneering technologies and products.

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.

The pace of new product development has quickened. In 2005, TATA MOTORS created
a new segment by launching the TATA Ace, India's first indigenously developed mini-
truck. The years to come will see the introduction of several other innovative vehicles, all
rooted in emerging customer needs. Besides product development, R&D is also focusing
on environment-friendly technologies in emissions and alternative fuels.

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.

True to the tradition of the TATA Group, TATA MOTORS is committed in letter and
spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global
Compact, and is engaged in community and social initiatives on human rights, labor and
environment standards in compliance with the principles of the Global Compact.
Simultaneously, it also plays an active role in community development, serving rural
communities adjacent to its manufacturing locations.
With the foundation of its rich heritage, TATA MOTORS today is etching a refulgent
future.

17
 MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

18
Domestic Sales

TATA MOTORS have shown a continuous growth in commercial vehicle s egment.

There is a growth of 34% in MHCV and 46% in LCV in 2006-07.
A total growth of 3% growth is achieved in total CV.

COMPETETIORS:

19
 Ashok
Leyland

MAHINDRA &
EICHER MAHINDRA

SWARAJ

The above companies are the leading manufacturers in heavy & medium commercial
vehicles which are operating in JAMSHEDPUR. In Jamshedpur TATA is the leading
vehicle and has a greater market share.

SWOT ANALYSIS FOR TATA MOTORS

STRENTHS

20
  Tata Motors has major share in HMCV segment (60%) and second largest in
passenger vehicle market.
 The company is the world's fifth largest medium and heavy commercial vehicle
manufacturer.
 Tata Motors is the first company from India's engineering sector to be listed in the
New York Stock Exchange (September 2004).
 The company has made major mergers and acquisitions in the recent past viz.
Ford and Land Rover (U.K.), Daewoo commercial vehicles company (Korea).
 The company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, Australia, South East Asia
and South Asia.
 It has assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine,
Russia and Senegal.

WEAKNESSES
 There is a need for more service stations for its authorized dealers.
 The recent mergers and acquisitions were too expensive.
 Maintaining the good quality product at a comparatively low cost is becoming
tough for the company.

OPPORTUNITIES
 There has been a continuous increase in the exports of both commercial and
passenger vehicles of Tata Motors.
 Government has provided the companies with SEZ’s and EEZ’s with flexible
policies and also providing concessions for manufacturing plants meant for
export.
 Though the urban market has been penetrated, the rural market is still open for
penetration.
 The average annual income of people in India has increased which ensures the
demand for both passenger and commercial vehicles.

THREAT
 The biggest threat for the company is the increasing prices of the raw material,
most important among them is steel.
 The interest rate on vehicle loans has been increased by the government several
times during the past few years which has lead to fall in the demand.
 Since the government has allowed 100% FDI in automobile sector lot of foreign
players have entered into the Indian automobile sector e.g. Hyundai, Toyota.
 There is also a rise in the number of domestic competitors in the recent years.

21
4.1 INDUSTRY PROFILE:

Automobile put the horses on rest and changed the way of living for mankind, is a
wheeled passenger vehicle that carries its own motor. The term 'automobile' is derived
from Greek and Latin words. 'Auto' in Greek means 'self' and 'mobiles' in Latin means
'movable.' The phrase refers the fact that it 'moves by itself.' Automobile used to be also
addressed as 'motorwagen' or 'horseless carriage'.
The first automobile rolled in India in 1897 in Bombay (now Mumbai). Soon the number
of cars increased on the roads and it became the status symbol until ‘MARUTI UDYOG’
entered the market in 1980s with cars at economical price and high fuel efficiency.
Maruti800 had ousted the outdated model of ‘HINDUSTAN MOTORS’ best seller brand
Ambassador. Today, the Indian automobile industry has matured greatly. It has become
one of the largest industries in India, witnessing impressive growth during the last two
decades. Worldwide, the industry is getting recognition and vehicles as well as
components are making good progress in the export market. . In India there are 100
people per vehicle, while this figure is 82 in China. It is expected that Indian automobile
industry will achieve mass motorization status by 2014.

INDIAN AUTOMOBILES CURRENT SCENARIO

 Largest two-wheeler manufacturer in the world.

 2nd largest tractor manufacturer in the world.
 5th largest commercial vehicle manufacturer in the world.
 #1 global motorcycle manufacturer is in India.
 4th largest car market in Asia - crossed the 1 million mark.

PRODUCTION SCENARIO

The bar diagram given below compares the figures between 1998-99 and 2004-05 (Apr-
Dec).

22
1. Among the two-wheeler segment, motorcycles has the major share in the market. Hero
Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in
scooter and TVS makes 82% of the mopeds in the country.
2 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of
the market share. Among the passenger transport, Bajaj is the leader by making 68% of
the passenger vehicles.
3 Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in
passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
Mahindra holds 42% share.
4 In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle
manufacturer.
India has witnessed a sudden and sharp twist to its earlier staggering political and
business scenario. With the influx of F.D.I, the economy has seen the sensex soaring
thanks to the young working population from the various strata of the society, who are
sincerely contributing to the G.D.P of the country. The young population has become
extremely mobile in terms of conducting business and serving the society. The sales of
commercial and passenger vehicles has thus witnessed a sudden increased demand which
is expected to grow in leaps and bounds in the following months to come.

23
The average working population has increased, and with the B.P.O sector tagged to
provide employment to thousands there has also been an increase in the passenger car
market.

TRENDSIN

Prod
PRODUCTION IN

MILLION

4.8

24
ion
GROWTH PATTERN COMPARISON FOR 6 YEARS
Liberalization and Globalization has contributed largely to the sudden entry of new
players in various segments of the automobile industry. With the dawn of the new
millennium and the introduction of new vehicles with extended features, better quality
product and after sales services in the commercial and passenger vehicles, the market had
seen a tremendous rise in the demand for new vehicles. The above graphs show a sudden
rise in the production of automobiles. It shows a rise of 77% in 5 years from the year
2000 to 2005. Last fiscal saw the production touching 9.74 million units from the
automobile sector. The trend is predicted to prevail in the coming 5 years and the
production is expected to grow by another 15 % in the next few years to come.

SEGMEN

Gro
4 year CAGR

The Automobile Industry has not experienced much change in its structure over the last 6
years because the two-wheelers continue to form the major share of domestic sales in the
Indian market whereas the passenger vehicles lead the export market with a 57.4% share.
The growth of the 2 wheeler and the sudden demand for the 4 wheeler cars, the passenger
vehicle market is being probed by the danger of losing its market share. It is witnessing 11.3

25
competition from the 2 wheeler manufacturers who are now providing vehicles to the
customers with minimum down payment options and easy repayment schemes.
Private financers have mushroomed into the cities and are fundamental in the increased
sales of the new vehicles. New customers are constantly being lured by the best quality
automobiles from various parts of the globe and from the local competitors.
The current market share but belongs to the commercial vehicles in which TATA motors
holds a major market share.

26
SWOT ANALYSIS FOR AUTOMOBILE INDUSTRY
STRENGTHS
 Indian automobile industry sales grew to 11.12 billion units in 2006-07,
exhibiting an impressive CAGR of 15.5% during the past 5 years.
 India is the second largest two-wheeler manufacturer in the world.
 The Indian automobile industry has reached a size of US$ 15 billion in 2006–07,
growing at a CAGR of nearly 29% in the last four years
 Fifth largest commercial vehicle manufacturer in the world.
 Acquisitions made overseas are helping Indian automobile companies get access
to new set of skills, technology and customers e.g. recent acquisition of Jaguar
and Land Rover brands (U.K.), Daewoo Commercial Vehicle Company (Korea).
WEAKNESSES
 The automobiles manufactured in India are not of the European standards and
their import duty is sometimes more than 100%.
 The Indian automobile sector has been flooded by both foreign and domestic
companies.
 The burden of direct and indirect taxes is higher in India as compared to in other
countries.
OPPORTUNITIES
 Penetration level of commercial vehicles is less, especially in Rural area.
 Rapid Urbanization and Increase in income level.
 The Indian automobile sector has shown a rise of 78% from 2000-2008 and the
production is expected to grow at 15% in the years to come.
THREATS
 Increased Automobile-density gap between Rural and Urban India.
 With 100% FDI allowed in India more and more foreign companies are opening
there manufacturing plants in India and hence building more competitors.
 In order to emerge as a manufacturing hub, India would face competition from
other low cost countries such as China, Thailand, Brazil

27
 CHAPTER-5
DATA
PRIMARY DATA:
The primary data was collected by asking the consumers who come to the authorized
service stations for the servicing of their commercial vehicles and also the new
customers of the commercial vehicles to fill up the questionnaires by me. It is a very
important part of the project as it is only through the properly filled up questionnaires
that I can reach to any conclusion from the data which I got from the questionnaires.
SECONDARY DATA:
Secondary data are the information which is attained indirectly. They are the data
collected by someone else and which has already passed through statistical process.
There exist two sources of secondary data.
Internal sources- they can be classified into four broad categories

Internal External
sources sources

A
 ccounG
tienngerRaetecoargdrseat deal of information. It gives a detailed analysis of sales by

product, customer, industry, geographical area.

 Sales force reports- this source provide a great deal of information
 Miscellaneous reports- any studies done on marketing problem of the company,
special audits also provide a good deal of information
 Internal experts- executives working as product manager, marketing research
manager, advertising personnel also serve to be a good source of information.

28
External sources-external secondary data do not originate in the firm and are obtained
from outside source.
Example-govt publications, non-govt publications, newspapers, magazines, journals,
websites etc.

29
 CHAPTER-6
FINDINGS AND ANALYSIS

SAMPLE SIZE = 100 CUSTOMERS

The questions were asked to 100 customers about customer’s satisfaction that have
purchased Tata Motors heavy & light commercial vehicles. I have selected several
models which are LPT 2515 TC, 2516 TC, SE/SK/1613, ACE, 407 EX, 207 DI EX, 3516
TC, 1109 EX, 709 LP.

The data’s collected were of the month of May and June from MITHILA MOTORS pvt.
Ltd. (DEALER) in JAMSHEDPUR.

Q1. When was the last time your TATA vehicle was serviced with a TATA dealer/
TASS?

YEAR 2006
MARCH (07)
18%
25%
NO. OF
PERIOD CUSTOMERS
MARCH (07) 25
APRIL (07) 32 JAN-FEB(07)
25% APRIL (07)
JAN-FEB (07) 25 32%

YEAR 2006 18 MARCH (07) APRIL (07) JAN-FEB

INTERPRETATION

Most of the customers have come for service in TATA DEALER SERVICE STATION
in the month of april i.e. 32% last time and the least the customers came for service is in
the year 2006 i.e. only 18%.
According to the customer survey many customers told that they have to come for
service again and again because of some problem in the vehicle. Only 18% of the total
customers said that they have come to a dealer service after a very long time. Those 18%
customers are quite satisfied with the service.

30
Q2) Where did you take it for service? (Name of the dealer)

% O F C U S TO M E

DEALER No. OF CUSTOMERS M ITH IL A M O TO R SO TH E R

MITHILA 80
MOTORS
OTHERS 20

80%

INTERPRETATION

80% of the customers come for services in MITHILA MOTORS (DEALER).Only 20%
prefer others. According to the survey all the people are very well known to the people in
mithila and they trust them.80% customers regularly come for service in mithila motors.

Q3) How was the overall experience?

% OF CUSTOMERS

OVERALL No. OF
EXPERIENCE CUSTOMERS
DISSATISFIED

SATISFIED 60 40%

SATISFIED
60%
DISSATISFIED 40

31
 INTERPRETATION

According to the survey 60% customers are overall satisfied and 40% are dissatisfied.
According to the survey:
 Most customers are dissatisfied with the unavailability of spare parts in Mithila
motors.
 Some are dissatisfied with the product quality.
 Some are unhappy with the mechanics working in Mithila motors.
 Most of the customers are very much happy with the culture of Mithila motors
and also the way the staffs attend the customers.
 Some are unhappy with the space available for servicing at dealer point.
 Some are dissatisfied with the delay in service.

No. OF VEHICLES No.OF CUSTOMERS

<= 5 vehicles 43
> 5 vehicles 22
> 10 vehicles 35

Q4) NO. of TATA commercial vehicles used in the past 5 years?

% OF CUSTOMERS

> 10
vehicles <= 5
35% vehicles
43%
<= 5 vehicl
> 5 vehicle
> 10 vehicl
> 5 vehicles
22%

32
INTERPRETATION

According to the survey customers who have used more than 10 tata commercial vehicles
are 35% of the sample customers. Customers who have more than 5 Tata CV are 22%
and 43% of the customers have less than 5 commercial vehicles.

This shows that many customers are satisfied and happy with TATA COMMERCIAL
VEHICLES and of their services.

The FLEET OPERATORS of TATA COMMERCIAL VEHICLES who operate in whole

of Jharkhand and have more than 10 TATA CV is:

1 UTILITY TRANSPORT
2 FRONTLINE ASSOCIATES
3 B.S. ROADWAYS
4 COMMERCIAL CARRIERS
5 TARAPORAN COMPANY
6 RAHANIA TRAILORS
7 MALLIK TRANSPORT
8 HAULERS INDIA
9 TAURIAN FINANCE STEEL CO.
10 NARESH KUMAR AND CO.
11 C.C.I.
12 SEIZER METALLICS

Q5) Type of work required in

No.your vehicle.
of customers

40 36
30
30
20
20 14 PAID SERVIC
FREE SERVIC
10
PAID REPAIR
0 WARRANTY
PAID FREE PAID WARR
SERVI SERVI REPAI ANTY
33
No. of 30 36 14 20
customers
Most of the customers i.e.36% come to MITHILA MOTORS for FREE SERVICE and
only 14 out of the 100 customers come for the paid repair. The reason behind this is that
according to the survey many customers told me that spare parts available in any dealer is
very costly. Therefore sometimes they buy parts from local shops at lower cost.30% of
the sample customers come for PAID SERVICE and 20% customers come for repairing
if its vehicle is in warranty period.

Type of service No. of

Q6) Did you have to make an advance booking? customers
NO.OFCUSTOMERS
PAID SERVICE 30
FREE SERVICE 36
PAID REPAIR 14
NO
34%
WARRANTY 20
YES
NO

YES
66%

INTERPRETATION

66% Customers have to make an advance booking for servicing because in MITHILA
MOTORS because of the rush of customers time consumption is more. This results in a
loss of the customers. Therefore they have to do advance booking. Only 34% of the
samples customers do not do advance booking. These customers mainly come for paid
repairing of the vehicle and not for free servicing. Many customers have to wait in the
queue because of the rush.

34
 Warranty Immediately Accepted No. of customers

YES 65
NO 35

Q. 7) If your vehicle was under warranty was it immediately accepted or it took time for
a decision to be taken?

No. of customers

NO
35%
YES
Y
65% N

INTERPRETATION

According to the survey 65% of the customers said that their vehicle under warranty was
accepted.35% of the customers said that although their vehicle was under warranty then
also it was not immediately accepted.

 Customers view

1. Some customer said that there was unavailability of spare parts in

MITHILA MOTORS therefore it was not accepted.

35
 2. In some dealer workshops (mithila motors chaibasa), they do not have
the authority to accept warranty.
3. Some times parts are not available so the dealer have to bring from
OPTIONS NO.OF CUSTOMERS
IMMEDIATELY 75
NOT IMMEDIATELY 25
outside. It is time consuming and also loss for the customer.

Dealer’s view

1. According to the dealer some parts of vehicle are not under warranty so it
is not accepted.
2. Also some customers do not bring their registration book so it is not
possible for the dealer to repair the vehicle under warranty because for some vehicle
warranty is accepted till one year from the purchase date.

INTERPRETATION

94% Customers told that they need not have to pay any deposit but also 6% customers
told that they once gave the deposit before their vehicle was repaired. The reason being
sometimes spare parts were not available in MITHILA MOTORS therefore the customers
had to buy from outside from their own pocket.

Q9) When the vehicle arrived at dealership/ TASS (TELCO AUTHORISED SERVICE
STATION), how long did it take for the vehicle to be taken into the workshop and open
job card?

NO.OF CUSTOMERS

25%

75%

IMMEDIATELY NOT IMMEDIATELY

36
INTERPRETATION

According to the survey 75% customers said that when their vehicle arrive at the
authorized workshop their vehicle was immediately taken inside and the job card was
immediately opened.25% customers also said that that it took time for the job card to be
opened.
 According to the customers there is a queue formed sometimes. The customers
also complained that sometimes the dealer do not accept the warranty period of
the parts which is to be repaired therefore the vehicle is not being taken inside.
 The dealer also said me that sometimes the customer do not bring the registration
book therefore it is not possible for them to take the vehicle inside the workshop.

Q 10) Are you satisfied with the performance and product quality of different models?

SATISFIED DISSATISFIED

100
100
86
70
%
Of
80
62 60
C 60
U
S 38 40
T 40
O 30
M 20 14
E
R
S 0

37
INTERPRETATION

MODEL 1613 LPK – 62% of the customers are satisfied and only 38% customers are
dissatisfied.
Why dissatisfied
According to the survey some customers told that fuse system is not good. Some said that
diesel in tank comes to chamber which in diesel loss and mobil loss.

MODEL 2515 TC - 60% customers are satisfied and 40 % are dissatisfied with this
model.
Why dissatisfied
A customer name JAI PRAKASH SINGH said that the vehicle has poor pick up.he also
had a problem of gear trouble but the action was not taken.Another customer said that he
came to MITHILA MOTORS 4 times for steering problem again and again.

MODEL 2516 TC – 86% Customers are satisfied and only 14% are dissatisfied with is
model.
Why dissatisfied
Few customers have the problem of diesel leakage.

MODEL 407 EX – All the sample customers to which I have contacted are satisfied with
the performance and product quality of this model.

MODEL ACE – 70% Customers are satisfied and only 30% are dissatisfied.
Why dissatisfied
According to the survey some customers said that there is no sudden pick up in the
vehicle. Some said that tyre is very small. Some said that body and tyre guard is not
there. Noisy steering also creates problem.
A customer named M.D.SALIM said that while purchasing vehicle it comes without
good paint so he had again painted from his own pocket.

Q11) How frequently the maintenance cost occur?

No. of times(monthly) No. of Respondents

No Maintenance Cost 18
<= 3 times 73
> 3 times Frequency Of Maintainance
9 Cost(monthly)

9% 18%

No Maintainance C
<= 3 times
> 3 times

73% 38
INTERPRETATION

According to the survey I found that only 9% customers have to incur maintenance cost
more than 3 times a month.73% of customers have to incur less than 3 times a month and
also 18% customers reported that they didn’t incur any expense on their vehicle since
they purchased. These customers have recently bought their vehicle. Therefore it means
the maintenance cost of TATA commercial vehicles is very less.

MODEL WISE MAINTAINANCE COST

MAINTAINANCE COST(MONTHLY IN RS)

7500
8000
7000
6000 5000
5000
3500
4000
3000 2000
1500
2000
OPTIONS NO. OF RESPONDENTS
1000
YES
0 74
NO LPT 2515 LPK 2516 1613 LPT
26 407 EX ACE
TC TC

INTERACTION WITH SERVICE ADVISOR

26%

YES
NO
Q12) Did you interact with the service advisor about your problem?
74%

39
INTERPRETATION

26% customers did not interact with the service advisor and 74% customers took
suggestion of them.

Understanding the problem

WAS A ROAD TEST TAKEN

DID HE UNDERSTAND THE PROBLEM

50
24% 45
40
35
30
50 50
8% 25
68% 20
15
10
5
YES NO NO PROBLEM
0
YES NO

INTERPRETATION

According to the survey 24% customers who have no problem with the vehicle did not
interact with the service advisor.8% customer said that the service advisor did not
understood their problem and had taken their problem casually.

Q13) Did the workshop give you a proper estimate of time and cost?

PROPER ESTIMATE OF TIME & COST

40
 NO
40% YES
YES
NO
60%

INTERPRETATION

According to the survey 60% customers said that the dealer gives them proper estimate of
time and cost.40% said that they do not give the estimate. The customers said that
sometimes spare parts were not available so they
OPTIONS NO. OF
RESPONDENTS took time to arrange the spare parts. Dealers said
that first they have to see exactly what is the
YES 76
problem in the vehicle and then they do the repair.

NO 24
Q14) Was it delivered on time?

TIMELY DELIVERY
T

76
80
OPTIONS NO. OF 70
RESPONDENTS 60
50 %
40
30 24OF
YES 60 20 CUS
10 TO
0 ME
YES NO
NO 40 RS

NO. OF RESPONDENTS

41
INTERPRETATION

76% Customers said that their vehicle was delivered on time. Only 24% said it was not
delivered on time. According to the survey one customer said that the dealer once
delayed for 2-3 days in delivering the vehicle because then parts were not available.
Sometimes que is formed in the workshop. The main reason is because of space problem
in MITHILA MOTORS.

Q15) How frequently you change the tyre?

TYRE REPLACEMENT(MONTHS)

8 8
8
7
6
6 5
5
4 3
3 MONTHS
2
1
0

MODEL

INTERPRETATION

42
According to the survey customers of MODEL 1613 LPT said that they change the
vehicles tyre once in 3 months because it is heavy commercial vehicle and holds a
capacity of around 22 tones.
Customer of MODEL LPT 2515 TC said that the average life of tyre is around 6
months. Customer of MODEL LPK 2516 TC said that the average life of tyre is 5
months.
Customer of MODEL 407 EX said that the average life of tyre is 8 months.
Thus the conclusion is that the LCV of TATA has more average tyre life than H & MCV.

Q16) What is the KMPL of the vehicle?

AVERAGE MILEAGE

18 17
16
14
12
10
10
8 AVG.
6 MILEAGE(KMPL)
3 3.5
4 2.5
2
0
1613 LPT LPK 407 ACE
LPT 2515 2516 EX
TC TC

INTERPRETATION

According to the survey I found that MODEL 1613 LPT has a mileage of 3 kmpl.
MODEL LPT 2515 TC - 3.5 KMPL
MODEL LPK 2516 TC – 2.5 KMPL
MODEL 407 EX – 10 KMPL

43
MODEL ACE – 17 KMPL

17) Did you go back to the workshop for the same problem shortly afterwards?

CAME BACK FOR THE SAME PROBLEM SHORTLY

AFTERWARDS

NO
42% YES
YES NO
58%

INTERPRETATION

According to the survey 42% customers did not come back for the same problem shortly
COMPETENCE NO. OF afterwards.Of these some do not have any problem
OF MECHANIC RESPON with their vehicle.58% of the customers said that they
DENTS went to the workshop for the same problem shortly
afterwards.
SATISFIED 79 
Some came because of pump problem again and
again.
 One customer bought some parts from outside
DISSATISFIED 21
because the parts available in MITHILA
MOTORS was expensive so he has to come to the
workshop again.
 One customer has a complain that his vehicle was under warranty period then also his
complain was not being listened by any service station so he had to come again.

Q.18) How do you find the competence of mechanic in the workshop? Do they know
their job well?

NO. OF RESPONDENTS

90
80
70
60
50
40 79
30
20
10 21
0
SATISFIED DISSATISFIED

SATISFIED DISSATISFIED

44
 LEVEL OF SATISFACTION

Q19) Will you recommend others for service in this workshop?

% OF RESPONDENTS

NO
82%

YES
NO

YES
18%

INTERPRETATION

According to the survey 82% customers are happy with the staff present in MITHILA
MOTORS but 18% customers recommended that some others should be brought for
better and quick service.
Some customers recommended that the mechanic should be increased as there is always a
rush in the workshop. The manager should guide the mechanic to do proper work and
recheck the vehicle after the servicing is done. One supervisor should also be kept to
guide the mechanic.

Q20.) Are you happy with the cleanliness and workshop infrastructure?

CLEANLINESS & WORKSHOP INFRASTRUCTURE

NO
14%

YES
NO
YES
86%
45
INTERPRETATION

According to the survey 86% customers said that they are happy with the cleanliness and
workshop infrastructure but 14%customers also said that they should increase the space
of workshop. Most customers complained that they have to park their vehicle outside the
gate for 2-3 days as there is rush in MITHILA MOTORS

21) LIKINGS OF THE CUSTOMER ABOUT TATA COMMERCIAL VEHICLE

% OF RESPONDENTS

82
99

75

SERVICING PRODUCT QUALITY BRAND

INTERPRETATION

82% of the customers like the service of TATA commercial vehicles than others as there are more
no. of service station of TATA in every district.
99% customers like the brand of TATA as it is a trusted company.
Only 75% customers like the product quality of TATA C.V.

46
Q22.) CUSTOMERS ARE COMFORTABLE WITH THE SERVICE OF.

DEALER % OF PEOPLE

MITHILA DEALERSHIP 60
TASS(Tata Authorised Service Station) 15
Other dealership & serviceability 25

% OF PEOPLE

25%

60%
15%

MITHILA DEALERSHIP TASS(Tata Authorised Service Statio

INTERPRETATION
Other dealership & serviceability

According to my survey customers are most comfortable with the service of MITHILA
MOTORS(DEALER).The spare parts available in MITHILA are sufficient and also the
tools the mechanic use there are special tools provided by TATA MOTORS.Mainly the
bonding and trust between the staffs and the customers in MITHILA is very good.Only
15% customers go to TASS as there is not so much staff present there.

Q.23 SPARE PARTS AVAILABILITY

% OF CUSTOMERS

37%

63%

47

SATISFIED DISSATISFIED
INTERPRETATION

According to the survey 63% customers were satisfied with the spare parts available in
MITHILA MOTORS.37% customers are also dissatisfied. Some customers said that even
the common regular use parts are not available. Therefore sometimes they have to buy it
from outside from their own pocket.

CHAPTER-7
RECOMMENDATIONS

 Spare parts should be available in the workshop as & when required by the
customers.

 Workplace should be increased for repairing as there is a queue formed in the

workshop.

 Washing space should be increased.

 At least two supervisors and service engineer should be kept in the workshop to
see whether the mechanics are properly doing the work and they need to guide
them time to time.

48
  At least 4 mechanics professional as well as non professional, are being given
training in a year rather than two.

 Proper estimate of the cost and the time taken to repair should be given before
only.

 Some customers were not knowing about the AMC (Annual maintenance cost)
.The dealer should suggest it before only to all the customers.

 During the training I even suggested the customers to please interact with the
service advisor about their problems.

 I also suggested to mithila motors that there should be separate service station for
small & heavy vehicles.
 Mechanics should be increased as there is much waiting time for the customers.
They should also keep more professional & trained mechanics for much faster &
smart work.

 One time work should not be done twice shortly afterwards by the mechanics.

 Mobile servicing should be spread over larger areas.

 Road test should be taken for every vehicle after the repairing is finished.

 One service advisor should always be there when the customer arrives in the front
office to guide them.

FACILITIES

49
  They should provide a toll free number so that customers can call anytime to
check the status of work done.

 They can make a good restaurant at the service station to make whole exercise
enjoyable.

 There should be separate washroom for customer and staff.

 Mithila motors should provide net facility to customers. This would create a
service differentiation.

 They must follow up with the customer because that gives the impression that
TATA is really caring for them.

CONCLUSION

Customer Satisfaction plays pivotal role in any company’s improvement and is the
ultimate goal of any organization. Its great learning experience to work with TATA
MOTORS. I would like to conclude that a heavy, medium & small commercial vehicle
has a great market potential.

During the project I learned about H&MCV and SCV products of TATA
MOTORS & the customers view about the product performance. I also came to know
different views of the customers about the services provided by the service work stations.

I also suggested some of my views to the customers and also to the MITHILA
MOTORS (DEALER) how they can make their service much better. I understood the

50
customer’s problems, found the solutions with the service advisor and explained to them.
From the survey I found that some customers are dissatisfied with the product quality and
some are dissatisfied with the services provided by the dealer.
As the study concentrates to find the satisfaction level of customers of TATA commercial
vehicle and from the findings it can be concluded that almost every area needs
improvement whether it is product quality, services or spares provided by the dealer
workshop. If these areas are improved systematically there is no doubt that customer will
receive more satisfaction and the future of this company will be glorious in the field of
automobile. At last I would say that I enjoyed every moment working with Tata Motors.

CHAPTER-8

BIBLIOGRAPHY

 Marketing Management - Philip Kotler.

 Business policy and Strategic Management.
 International Marketing- Lascu.
 India Today- magazine.
 4Ps of Business and Marketing.

REFERENCES

 www.tatamotors.com.

51
  http://www.india-today.com/btoday/20010930/cover2.html
 www.mahindra.com.
 www.ashokleyland.com
 www.thehindubusinessline.com/2002/03/08/stories/
 http://www.automobileindia.com/india-automotive/automotive-trends.html
 http://www.tata.com/tata_sons/articles/20060818_rural_india.html
 http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

CHAPTER-9
ANNEXURES
QUESTIONNAIRES

CUSTOMER FEEDBACK FORM

Q1 When was the last time your TATA vehicle was serviced with a TATA dealer/
TASS?

Q2 Where did you take it for service? (Name of the dealer)

Q3. How was the overall experience?

Q4. How many TATA commercial vehicle have you used in the past 5 years?

Q5. What type of work was required in your vehicle?(FC/ PS/PR/ WR)

Q6. Did you have to make an advance booking?

52
Q7. If your vehicle was under warranty was it immediately accepted or it took time for
a decision to be taken?

Q8. Were you asked to pay a deposit or charged for lubricants?

Q9. When the vehicle arrived at the dealership/ TASS, how long did it take for the
vehicle to be taken into the workshop and open job card?

Q10. How satisfied are you with the performance quality of Tata novus?
Very satisfied .................................................
Quite satisfied ................................................
Very dissatisfied ............................................

Q11. How frequently the maintenance costs occur?

Q12. Did you interact with service advisor about your problem? Did he understand the
problems? Was a road test taken?

Q13. Did the workshop give you a proper estimate of time and cost?

Q14. Was it delivered on time?

Q15. How frequently you change the tyre?

Q16. What is the mileage of the vehicle?

Q17. Did you go back to the workshop for the same problem shortly afterwards?

Q18. How do you find the competence of mechanic in the workshop? Do they know
their jobs well?

Q19. Will you recommend others for service in this workshop?

Q20. Are you happy with the cleanliness and workshop infrastructure?

Q21. If you could make one suggestion that will help the dealer/ TASS improve their
service to customers like you, what would be it?

53
GRAPHS AND CHARTS

INDIA’S DEMOGRAPHIC DIVIDEND: A REASON FOR GROWTH

54
Ind ia’s “D e m o gra p hic D iv

50.00

42.64 42.16
38.99

55
 PRODUCTION IN
er in million MILLION

TRENDSIN
Prod
4.8
56
 SEGME

Gr
4 year CAGR

11.3

57
MARKET SHARE OF TATA MOTORS

Tata Motors market share & Sales chart

58
Domestic Sales

Competitive Advantage Of Tata Heavy & Medium Commercial Vehicle

100
90
80
70
60 Tata H&MCV
50 Others
40
30
20
10
0

59
 PROFIT MARGIN

2500000
2304000

2000000

1920000
1500000
1329726
1399933

1000000

600000
500000

477887
0
LPT 1613 LPT 2515 407 EX

TOTAL COST TOTAL REVENUE

When was the last time your TATA vehicle was serviced with a TATA dealer/
TASS ?

PERIOD NO. OF CUSTOMERS

MARCH (07) 25
APRIL (07) 32
JAN-FEB (07) 25
YEAR 2006 18

60
 CHAPTER 10
CASE STUDY

THE RACE FOR ACE

ABSTRACT:

This case study is an endeavor to unfold the success story and the challenges of one of
the most successful commercial vehicles manufactured by Tata Motors i.e. “ACE”. The
company realized that the entry level for the semi-urban and rural market was a product
between three wheeler and a pick-up truck, at a price sensitive level. It put together a
team to develop such a vehicle, and it came up with an ACE.
Ace made a new segment called small commercial vehicle segment and is seen as an
ideal vehicle for short, narrow village roads as well as long highway hauls, for the small
bulky loads and large heavy ones. India’s first mini-truck- Tata’s ACE was launched in
May 2005 and sold 6,500 units in a month. Since May 2005 till date Tata’s Ace has
dominated the one ton four wheeler truck segment (SCV’s). Ace is the only commercial
vehicle of Tata Motors whose demand exceeded the supply. The Tata Motors plant at
Pune which manufactured Tata’s Ace had to increase it’s production to 100% i.e. annual
increase of production from 30,000 units to 60,000 units in the period 2005-2006.
Though Ace has performed exceptionally well for Tata Motors since it was launched in
the year 2005 and still dominates in the market in its own segment, but the future of Tata
Motors is full of challenges with all its competitors viz. Bajaj Auto, Force Motors,
Eicher, Piaggio, Atul Auto and Ashok Leyland are all ready to counter ACE, though it’s
always a tough task to compete with the products of Tata Motors. The case study tries to
find out the reasons for the success of ACE and the challenges ahead.

61
 THE RACE FOR ACE

Ace has several firsts to its credit. Tata Motors will outsource more than 90 per cent of its
components compared with an average 60 per cent for its other vehicles. The exercise
threw up, according to company engineers, the first two-stroke diesel engine in the world
to be used in a commercial vehicle. Ace with sport car-like interiors and its noise and
vibration levels are closer to Indica's than to the truck family it belongs to.

Today, nearly all Tata vehicles are manufactured at its Pune factory. Ace will lead the
company to set up assembly units near the markets, setting off another big change in
manufacturing strategy. The project also sets another benchmark - it cost all of Rs 200
crore over five years - the lowest in Tata Motors' recent history for a new product. The
learning’s are expected to accelerate chairman Tata's Rs 1 lakh-car dream.

Be sure, Ace is not just a small product for Tata Motors. The vehicle is expected to
replace three-wheeled goods carriers and, later, even passenger vehicles in small towns.
Small traders and farmers buy 136,000 such vehicles every year for transporting goods.
The number has increased rapidly in the last two years, with sales growing at 24 per cent.

In three years, analysts say Tata Motors may well be selling over 60,000 vehicles and
Ace could contribute up to 10 per cent of all commercial vehicle sales. It will also take

62
Tata products to new customers at the lower end of the market - the ones who may turn
loyal customers to Tata's larger vehicles as business grows. Ace, which is priced at Rs 2,
2,50,000-2,35,000 will be available at a down payment of a mere Rs 20,000. "In the short
run, it is going to be one big brand ambassador for Tata Motors.

FEATURES OF ACE

VERSATILITY

The ACE can be conveniently used in cities as well as in rural areas. 12” tyres for the
first time in its class give higher ground clearance and higher loading capacity – resulting
in better performance on and off the road. The truck-like strength of the front and rear
leaf spring suspensions coupled with the shock absorbers provides a smooth ride and
great driving comfort. The rigid front axle is designed specially to weather Indian
conditions. With a small turning circle of 8.6m, the ACE can be safely and easily
navigated, both in narrow village streets and in dense city traffic.

SAVINGS

The performance of the engine as well as the comfortable conditions for the driver allow
the ACE to travel over 500 kms in a day. Low operating costs and the versatility offered
through features like its flat, large loading area and small turning radius, give a fantastic
opportunity to earn higher business revenue and higher profits, everyday. All this with
big Tata reliability make the ACE the best business partner for one and all.

STYLE

Car-like interiors and numerous accessories allow you to ride in style

A spare wheel attached to the lockable swing frame at the rear
Twin wiper for safe driving in rain

63
Horn pad on steering wheel
Easily accessible hazard warning switch for emergency
Engine start and stop with key
Styled dashboard with tray, digital clock, radio fitment provision, utility tray and clearly
visible instrument cluster
Lockable glove-box for keeping valuable documents

PERFORMANCE

The 700cc engine delivers a power of 16 HP @ 3200 rpm and a torque of 3.8 mkg @
2000 rpm. It is also eco-friendly and meets BS II and BS III standards. The water-cooled,
twin -cylinder IDI engine has an overhead cam shaft, temperature sensitive cooling-
system and rotary fuel injection pump, which together give high fuel efficiency and low-
maintenance operation. This also translates to longer life and lesser downtime. With the
lowest loading height of 675 mm, heavy loads can be conveniently placed in the load
body. The 4-forward synchromesh +1 reverse gear box gives smooth gear shifting.

COMFORT

Several big and small features have been added to ensure comfort for the occupants, even
on long rides. The fully-built sheet metal cab with doors, roof lining, and floor mat for
hear insulation and trims protect the occupants from rain, heat and cold. The ventilation
ducts, winding door glass and rear windows ensure good ventilation and continuous air
flow at leg and face level. Seats with soft cushion and back support ensure complete
driving comfort.

Other Features

Sun visor for protection from direct glare

Car like combi-switch with rotary switches for lamp and wiper control

64
Control pedals, gear shift and parking brake ergonomically positioned for maximum
comfort and easy access

Higher door opening angle and low floor height for easy boarding

SAFETY

Designed and manufactured using high strength steel, the ACE meets all Indian safety
norms - a novel feature in this class of vehicles. The ACE meets norms for frontal crash,
roof crush, and rear wall strength - assuring the utmost safety of the driver and the co-
driver. Seat belts are also provided for both occupants.

High braking performance is given through front disc brakes and rear drum brakes.
Driving visibility is excellent through the large windscreen, window glasses, large
overhead rear-view mirror and the large rear window. Large-sized, round headlamps with
bright halogen bulbs provide excellent lighting for night driving. Reversing is made easy
and safer with the help of a 2-box tail lamp with in-built reflector and the bright reverse
lamp at the rear.

KEY ISSUES AND CHALLENGES FOR ACE

1. High Cost

High cost is one of the major challenge Ace will have to face after the launch of piaggio’s
APE Truck. The price of Tata Ace is Rs 2,50,000 in comparison to its competitor
piaggio’s-APE which is priced at Rs 2,15,000, making a difference of Rs 35,000 between
the two which is quite high considering both Ape and Ace comes in the same category of
small commercial vehicles (SCV’s) and both of them having one ton load carrying
capacity.

2. Fuel Efficiency and power train

65
The major threat for Ace is that its main competitor Piaggio’s- Ape Truck offers a
mileage of 20kmpl against Tata’s Ace which offers a mileage of 14kmpl. So Ape Truk
definitely has an edge over ACE in terms of mileage. The other important difference is
that even Ape truk claims a maximum speed of 65km/hr whereas Ace claims a maximum
speed of 64km/hr.Ape also has a 6 speed gearbox in comparison to Ace which has 5
speed gearbox.

3. Style

Even the style of piaggio’s Ape-Truk is far more attractive than the Ace. The cabin of
Ape is given the look af a car and the tyre of Ace are radial which is weaker than the
tyres of Ape which has used nylon tyres.The Ace uses the traditional round shaped
headlamp whereas Ape provides a very trendy headlamp far good looking than the
traditional headlamp. This definitely has attracted customers to go for Ape-Truk in
comparison to Ace which does not have a trendy look. It is also available in more colours
than provided by Tata. Even Hyundai is planning to launch a a SMV in the same segment
which will eliminate the kind of monopoly enjoyed by Tata Ace in the small commercial
vehicle segment which also was Tata’s own creation.

4. Aggressive Marketing Policy

Tata’s Ace will have to give a thought on its marketing of Ace as its main competitors are
following aggressive marketing policies to counter attack Ace in the market. The Tata
Ace has already penetrated in both the urban and the rural market but the competitors are
also trying there best to cut the share of Ace in the small commercial vehicle segment and
make their presence felt in the market. Ape-Truk has decided to open large number of
authorized outlets and selling points targeting the Ace. They have kept their prices lower
than the Ace upto 30,000-35,000 which is an aggressive decision.

ANALYSIS AND CONCLUSION

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Looking at the present market scenario we can say that it was Tata who owns the credit
of giving a new commercial vehicle segment to India i.e the small commercial vehicle
segment. Before the introduction of Tata’s Ace the market was dived into the following
segments viz., heavy commercial vehicles, medium commercial vehicles and light
commercial vehicles including the three wheeler cargo carriers. Tata was lagging in the
light commercial vehicle segment. The credit goes to Tata as it performed a survey of the
customers and understood the need of a low cost commercial vehicle which is between a
three wheeler carrier and a pick-up truck. The Ace was then the gift to the price sensitive
customers.

Its almost three years when Ace was launched in India by Tata and since then it has
performed well and has forced the other automobile manufacturing companies to think
and come up a product which can compete with the Ace. And the time has arrived when
the competitors have replied and replied well with Piaggio’s Ape-Truk being the first one
and the companies like Bajaj, Eicher, Atul auto an Force Motors will follow in the race to
capture the Ace. Tata will have to think in order to maintain there supremacy in the small
commercial vehicle segment and may be bring some changes in their product.

They will have to look into the cost of there production and also the marketing strategy
which has to be more competitive now after so many companies are entering in the small
commercial vehicle segment. Since the number of companies providing the small
segment commercial vehicles will increase, the customers will now be poised of various
choices. Prices are bound to decrease further as there will no more be monopoly enjoyed
by Tata’s Ace and monopolistic competition will rule the prices. This also indicates that
Ace which is till now experiencing the growth stage may now enter into the mature stage
of the product life cycle. Decline stage may also follow unless a good strategic decision is
taken by the company. Aggressive marketing will also become the need of the hour.

Product modification and changes as per the market demand is needed even for a product
which may have ruled the market in its own segment for consecutive three years.

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END NOTE

The brand Tata is itself more than enough to speak the success story but to maintain this
success story in this cut throat competition in automobile sector.Tata not only needs to
maintain cost efficieny but it also has to maintain its century old brand image to retain its
position as the leader in the automobile sector.

REFERENCES

http://www.automobileindia.com/india-automotive/automotive-trends.html

http://www.tata.com/tata_sons/articles/20060818_rural_india.html

http://www.vicky.in/straightfrmtheheart/piaggios-answer-to-tatas-ace/

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CHAPTER 11
SYNOPSIS

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“THE EFFICIENCY OF THE PRODUCT AND CUSTOMER
SATISFACTION REVIEW”
Name: Ajit Kumar.
Industry Guide: Mr. Ran Vijay Kant.
Faculty guide: Mr. Nishant Rai.
The objective of the training was to ascertain the performance of
the selected products and to find out the quality of service
provided by the authorized service station of Tata Motors vehicles
(commercial vehicles), to know the level of satisfaction of the
customers of heavy and medium vehicles of Tata Motors from
these service stations and to ascertain the areas of improvement.
Tata Motors holds a major share in commercial vehicles where
India holds 5th position in manufacturing of commercial vehicles
in the world. Five products viz. LPT 1613, LPK 2516 TC, LPT
2515 TC and LPT2515 TCIC, 407 EX and ACE was selected for
the above mentioned purpose. The competitors of Tata Motors
were also taken into consideration while doing the research. The
project helped me in improving my research skills and managerial
skills. My analysis after the research is that there is a need for
improvement in the product quality, service provided at the
service stations and the spare parts provided by the dealers of the
workshop. Lack of service stations in relation to the number of
customers for servicing at the service stations is a major concern
which needs to be taken care of and which is necessary to increase
the customer satisfaction.
My industry guide Mr. Ravi Kant (Manager Marketing) is a
source of great inspiration for me. He was very helpful and
cooperative. He used to guide me whenever I had any problem. I
am really thankful to him for the support and guidance he has
extended to me during my training.

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