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SURVEY FOR THE DEMAND OF SCV-PASSENGERS OF TATA MOTORS IN RURAL AREAS

Summer Internship Project Report Submitted towards Partial Fulfillment Of Post Graduate Diploma in Management (Approved by AICTE, Govt. of India) Academic Session 2010-2012

Under the Guidance of: Industry Guide Ashutosh Sinha MANAGER- CVBU PASSENGER (SALES) TATA MOTORS

Submitted by: Siddharth Kumar Mishra BM010146 FACULTY GUIDE: Anagha Shukre Chairperson PGDM (Marketing) IMS, Ghaziabad

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PREFACE

Summer training is an integral part of PGDM to undergo a training session in business organization for 8 weeks to gain practical knowledge in their specialization and to gain some experience of what he/she is to face in real world. Theoretical knowledge only provides basic concept about the study. It doesnt guarantee success in practical problem. Further, the market condition, technology has changed tremendously these days. It has lead to growth in the market size and complexity in business It is from here we learn our flown before actually stepping into our working shoes. It adds to knowledge and better understanding of the organization. This project has greatly helped in giving shape to my effort of understanding the practical field

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ACKNOWLEDGEMENT
An undertaking of work life, this is never an outcome of a single person; rather it bears the imprints of a number of people who directly or indirectly helped me in completing this project report. I would have failed in my duties if I dont say a word of thanks to all those who made this report a grand success.

I am heartily thankful to my company guide Mr. ASHUTOSH SINHA whose encouragement, guidance and support from the initial to final level enabled me to develop an understanding of the topic. Also I would like to thank various dealers of MITHILA MOTORS for their valuable guidance and support.

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TABLE OF CONTENTS

1. Executive summary... 7 2. Introduction about the project..... 8 3. Indian Automobile Industry13 4. Indian commercial vehicle market..14
5. About the company...15

6. Comparison of three commercial vehicles..20 7. Economies of road transport operation..26 8. SWOT analysis of tata motors.27 9. Rural Marketing...29 10. Rural Market Potential30 11. Challenges in Rural marketing...33 12. Solution to problem of rural market.36 13. Rural Penetration.38 a) PMGSY.39 b) NGO..41 14. Statistical Tools...43 15. Conclusion55 16. References56
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LIST OF TABLE/ GRAPHS/ FIGURES

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EXECUTIVE SUMMARY
Automotive industry is one of the major businesses in todays world and to survive the intense competition in a market like that of India, an organisation has to adopt and effective marketing strategy. Organizations are spending millions of rupees on marketing of their products to ensure perpetual existence in the market. The objective of adopting intensive and diverse marketing strategies is 1. To increase the sales. 2. To maximize the profits. 3. To ensure long-term establishment. 4. To capitalize a major market share.

Purpose : The purpose of preparing this project was to study the marketing techniques adopted by Tata Motors in Rural areas and I have tried to include information not only on the marketing strategy of Tata Motors but also on the profile of entire Tata Group. It was great pleasure studying various products of Tata Motors and their marketing techniques and it has helped me to know the innovative marketing trends in Automobile Industry. My research emphasizes on the marketing strategy used by Tata Motors. The highlights of this study are : 1. To Understand the techniques of Advertisement, sales promotion and sales adopted by the company. 2. To Understand the Before and After Sales Services provided. 3. To Understand the Marketing Mix adopted by the Co.

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INTRODUCTION OF THE COMPANY

Tata motors is a multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company).Tata Motors is Indias largest automobile company, with consolidated revenues of USD 20 billion in 2009-10. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata Motors has produced and sold over 4 million vehicles in India. Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005 was ranked among the top 10 corporations in India with an annual revenue exceeding INR 320 billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Ahmadabad, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa and Thailand. Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car.

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ACQUISITIONS:

In 2004 Tata Motors acquired Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In 2005, Tata Motors acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the company. In 2007, formed a joint venture with Marcopolo of Brazil and introduced low-floor buses in the Indian Market. In 2008, Tata Motors acquired British Jaguar Land Rover (JLR), which includes the Daimler and Lanchester brand names. In 2010, Tata Motors acquired 80% stake in Italy-based design and engineering company Trilix for a consideration of 1.85 million. The acquisition is in line with the companys objective to enhance its styling/design capabilities to global standards. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station wagon design based on the earlier 'Tata Mobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially planned by auto-analysts, the car's excellent fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica in many ways marked the rise of Tata Motors.

JOINT VENTURES Tata Marcopolo released a low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Chennai, Bangalore, Chandigarh and Lucknow.
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Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation 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. Tata and Marcopolo have launched a low-floor city bus which is widely used by Chennai, Coimbatore, Delhi, Mumbai, Lucknow and Bangalore transport corporations. Its manufacturing facility is based in Dharwad. Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel engine technology. Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with many small companies in various countries around the world. Sales & Service Network Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai.

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OBJECTIVES OF THE PROJECT

To know the customers perception about the SCV vehicles of TATA MOTORS. To know the competitors of TATA MOTORS SCV passenger vehicles in the Rural market. To know the various attributes that affect the purchase decision of an individual.

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INDIAN AUTOMOBILE INDUSTRY The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about 1.5 million every year.[18] The dominant products of the industry are two wheelers with a market share of over 75% and passenger cars with a market share of about 16%.[18] Commercial vehicles and three wheelers share about 9% of the market between them. About 91% of the vehicles sold are used by households and only about 9% for commercial purposes.[18] The industry has attained a turnover of more than USD 35 billion and provides direct and indirect employment to over 13 million people.[18] The supply chain of this industry in India is very similar to the supply chain of the automotive industry in Europe and America. This may present its own set of opportunities and threats. The orders of the industry arise from the bottom of the supply chain i. e. from the consumers and goes through the automakers and climbs up until the third tier suppliers. However the products, as channelled in every traditional automotive industry, flow from the top of the supply chain to reach the consumers. Interestingly, the level of trade exports in this sector in India has been medium and imports have been low. However, this is rapidly changing and both exports and imports are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged. Note that, with a high cost of developing production facilities, limited accessibility to new technology and soaring competition, the barriers to enter the Indian Automotive sector are high. On the other hand, India has a well-developed tax structure. The power to levy taxes and duties is distributed among the three tiers of
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Government. The cost structure of the industry is fairly traditional, but the profitability of motor vehicle manufacturers has been rising over the past five years. Major players, like Tata Motors and Maruti Suzuki have material cost of about 80% but are recording profits after tax of about 6% to 11%.[18] The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Investment in the technology by the producers has been high. System-suppliers of integrated components and sub-systems have become the order of the day. However, further investment in new technologies will help the industry be more competitive. Over the past few years, the industry has been volatile. Currently, Indias increasing per capita disposable income which is expected to rise by 106% by 2015[18] and growth in exports is playing a major role in the rise and competitiveness of the industry. Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in the overseas market. Hero Honda Motors is occupying over 41% and sharing 26%[18] of the two wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three wheeler market. Consumers are very important of the survival of the Motor Vehicle manufacturing industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred to the end consumer. The price of oil and petrol affect the driving habits of consumers and the type of car they buy. The key to success in the industry is to improve labour productivity, labour flexibility, and capital efficiency. Having quality manpower, infrastructure improvements, and raw material availability also play a major role. Access to latest and most efficient technology and techniques will bring competitive advantage to the major players. Utilising manufacturing plants to optimum level and understanding implications from the government policies are the essentials in the Automotive Industry of India.

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Both, Industry and Indian Government are obligated to intervene the Indian Automotive industry. The Indian government should facilitate infrastructure creation, create favourable and predictable business environment, attract investment and promote research and development. The role of Industry will primarily be in designing and manufacturing products of world-class quality establishing cost competitiveness and improving productivity in labour and in capital. With a combined effort, the Indian Automotive industry will emerge as the destination of choice in the world for design and manufacturing of automobiles.

INDIAN COMMERCIAL VEHICLE MARKET

The commercial vehicle segment of the Indian automobile industry has shown great recovery after fending off the effects of the global economic crisis. The impact on the industry was mostly due to the stunted infrastructural projects and the lack of development in other industries, which require commercial vehicles. However, once the market started booming, the segment made its way back into the high growth zone, which started during 2009-10. Growth continued in 2010-11 also, with the production and sales of the industry and individual companies reaching new heights. The most profitable and quickly growing segments have been goods and passenger carriers. This can be attributed to the rapid expansion of cities and suburban areas, which is expected to continue in future as well. Keeping this in mind, we have projected the sales of commercial passenger carriers to register around 14% CAGR during 2011-12 to 2014-15. At the utility vehicle front, the country posted one of the fastest year-on-year production growths in 2009-10. Growth further stabilized during 2010-11 as the balance between demand and supply was attained after the sudden surge of demand during the post-recession scenario. With recovering vehicle demand from schools, corporate, and public sector organizations, the production grew strongly in 2010-11. We anticipate this trend to continue in coming years also, thus enabling the country to become a dominant utility vehicle player in the global arena. Many new product launches are also expected in the segment of LCV and MUV in the coming two financial years.

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SMALL COMMERCIAL VEHICLES

In India the Small Commercial Vehicle (SCV) segment was created by the launch of Tata Ace in May 2005. This category can roughly be characterized as sub 1000cc engine and less than 3.5 tonnes of weight. This segment competes the prevailing three-wheeler segment on the basis of cost, durability and new pollution control laws. Mini trucks are suitable for short intra-city deliveries, plying on narrow village roads, long highway hauls carrying small bulky loads or even heavy cargo. Before the coming of mini trucks to India, this segment was being catered by three-wheelers. With the Supreme Court of India's ban of overloading of cargo vehicles and restrictions on the entry of heavy commercial vehicles into city, the necessity of an intermediate segment was observed. Tata became the frontrunner to fill the gap by launching the first mini truck of India Tata Ace. With the immense popularity of Tata Ace, many other manufacturers from threewheeler segment or from Light Commercial Vehicle segment jumped into the SCV segment.

List of Mini Trucks in India

Tata Ace Tata Penguin Piaggio Ape truck Mahindra Mahindra Maxximo
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 Mahindra Gio HM Winner Ashok Leyland Dost Force Trump

PROMOTIONAL ACTIVITIES IN TATA MOTORS:

Its a key ingredient in marketing campaigns consists of a collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular products or services by customers.
Personal Selling

Advertising

Sales Promotion

Direct Marketing

Public Relation

The promotion tools used by Tata motor for its marketing activities are Demo of vehicles through road show & campaign. Free test ride to the customer Sales promotion through sponsoring special events Sales promotion through various schemes
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 Advertising

1) Road shows & campaign: Tata motors newly launched vehicle are advertised through Demo activities so that people get near view of the luxury product of Tata motors.

DEMO ACTIVITY OF NEWLY LAUNCHED BANNER BEING PUT UP FOR DEMO ACTIVITY TATA VENTURE NEAR ASHINA GARDENS AND AWARNESS IN SONARI 2)TEST RIDE:The customer are given free test ride as per the enquiry genrated from the print media as such news paper.The customer are given detail about the technical specification of the vechicle. de

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TEST RIDE GIVEN TO MR.SINHA OF RAJENDRA VIDLAYA SCHOOL ,SAKCHI . TEST RIDE GIVEN TO CUSTOMER THROUGH INQUIRY GENRATED FROM NEWSPAPER.

3) LAUNCHING EVENT:tata motors from time to time conduct launching event of its newly launched vechicle.

Tata venture & winger being launched Tata motor officer giving presentations about the vehicle at Telco club, Jamshedpur.

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tata motor employee and intern at launching event

4) ADVERTISEMENT:Tata motor vehicles are advertised through print and electronic media.

The competition: Based on the price range and the vehicle sales in the MUV segment over the past 2 years the major competitors for Tata MUV are Mahindra xylo, Mahindra bolero, and Toyota innova. The survey done state that most of the Tata MUV are facing the tough competition. But still the marketing strategy of Tata motor has kept up its demand and likeness for its MUV product in the customer mind. Though few people believe that the maintenance cost of some of the Tata MUV is higher as compared to its competitor. The newly launched Tata venture is facing tough competition from maruti Eeco, maruti Omni, Mahindra xylo. Pricing: Studying the on-road prices of newly launched Tata MUV venture as collected during the survey, we find that though cheaper competitor was maruti Eeco, it had not yet launched its compliant variant yet which would be costlier than venture & winger platinum. Tata venture gx-price rs 5, 07,000.

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SWOT ANALYSIS OF TATA MOTORS

TATA motors is the market leader in Indian Industry with high market share. TATA motors began in 1945 since then it produced more than 3 million vehicles. TATA motors employed around 23000 employees and it is expanding with pace.

Strengths
TATA motors is market leader in Automobile Industry with high market share. TATA Motors Company have huge employee base. TATA motors employee productivity percentage is higher. TATA motors produce low price car with low fuel consumption. TATA motors is the reputable brand in Indian Industry.

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Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. The companys dealership, sales, services and spare parts network comprises over 3500 touch points. Tata Motors has been aggressively acquiring foreign brands to increase its global presence. The research and development department of TATA motors is very strong. TATA motors posses High corporate responsibility.

Weakness
Return on Investment on TATA motors shares in low. TATA motors is not able to meet safety standards in their vehicles. The domestic sales of the company are not up to the mark. Tata has not got a foothold in the luxury car segment in its domestic market.

Opportunities
TATA motors can take the advantage of their low cost car by entering into third world countries where people have low purchasing power. TATA motors should focus in developing luxury cards. TATA motors can introduce more safety features in vehicles to gain more customer satisfaction. Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats
TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage. Other companies are starting to compete for some of this market share. In fact, the Pakistans Transmission Motor Company has built a basic four-wheeler for only $2,100. This car is considerably cheap and the Pakistan Transmission Motor company started exporting them to Sudan, Qatar, and Chile. This is going to be the beginning of new emerging car manufactures that will be producing low priced cars.

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The major challenge for TATA motors is the rising prices of steel, Aluminum and plastic which is heavily used in vehicle manufacturing. The low safety standards can impact the sales.

SCV VEHICLES OF TATA MOTORS

TATA ACE :
Tata Motors launched the Ace truck in May 2005 for just above Rs 2 lakhs. The new vehicle was a big hit selling 100,000 in just 20 months. As of May 2010 TATA MOTORS sold over 500,000 ACE's in just 5 Years. ACE is created another history in the commercial vehicle industry.[1] Currently this truck is only offered in a single colour (Irish cream), to save time in the paint shop. Tata is building a new factory that will be able to turn out 250,000 a year starting this month.[1] Tata Ace has created a new mini segment in India. Priced between 2.25 to 3.35 lakhs INR, the company aims to convert three wheeler users to 4 wheelers. One of the idea that has made the launch of this vehicle might be that the government policy in India not to allow HMVs (that are categorized by vehicles weighing above 3
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tonnes) to enter cities after 7 p.m. to reduce traffic jams and pollution. TATA has found the gap in the market and released Ace. The 700 cc engine delivers a power of 16 hp (12 kW) at 3200 rpm and a torque of 3.8 mkgf (37 Nm) at 2000 rpm gives a tough competition to Piaggio's mini truck (3-wheeler). It has a permissible loading capacity of 750 kg (1650 lb). It also has a modern cabin compared to its three wheeler rivals. It is best suited for use by villagers in carrying goods over short distances.

TATA MAGIC:
The Tata Magic is a Microvan launched by Tata Motors in June 2007. The Magic is the passenger version of the Ace mini-truck, the new Magic features an allsteel cabin. It offers a flexible seating capacity of 4-7 passengers with adequate legroom. Powered by a 16 bhp (12 kW), 700 cc water-cooled diesel engine, the Magic offers high fuel efficiency and very low maintenance. The 12-inch tyres provide higher ground clearance, and the rigid front axle is designed to handle tough roads. The Magic's turning radius of 4.3 metres (14.1 ft) is nimble enough to navigate the bylanes and traffic of India's crowded cities. The Magic has a clearly visible instrument cluster, utility tray and a digital clock in the dashboard and also a provision for fitting a radio.

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The Magic meets BS-III emission norms and has been developed for use in any market be it urban, semi-urban or rural. It is backed by a 36,000 km/12-month warranty. The Magic range starts at Rs 2.60 lakh (ex-showroom, Pune). Tata Motors' two new vehicles, Magic and Winger, are expected to cater to the two ends of the taxi segment. The Winger, which is a sturdier and more refined product, will attempt to wrestle market share in the staff (ITES/ BPO employees) transportation segments, Hotel & Inter-urban Tourist segments, airport drop and pickup.

TATA VENTURE :
The Tata Venture is a minivan unveiled on 5 January 2010 at the 10th AutoExpo in Pragati Maidan by Tata Motors in India. It is in competition with the prevalent MPV and vans from Maruti, Mahindra, Toyota, Chevrolet and Force Motors. Venture is powered by a 1.4-litre turbo diesel engine delivering 90 hp (67 kW) power, it boasts of the best-in-class fuel efficiency among diesel MPVs in the INDIA and is available in 5-, 6-, 7- and 8-seater arrangement. It comes with features such as dual heating, ventilation and air-conditioning (HVAC), reverse parking sensor, power windows, keyless entry and power steering.

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TATA WINGER PLATINUM :

In June 2007 Tata Motors launched the Tata Winger, on a new platform along with the passenger variant of the Ace, named Magic. According to Tata Motors Vice-President (sales and marketing) Mr Shyam Mani, the company's objective is "to change the way an average Indian travels." [3] Tata Motors' two new vehicles Magic and Winger will attempt to cater to the two ends of the light commercial passenger segment [4]. It can seat 9 to 13 passengers, comes with generous saloon space, spacious headroom and legroom, and wide luggage space. Passenger comfort has been further enhanced with all front-facing seats and, depending on the variant, will come with magazine pockets, bottle holders, spot lamps and grab handles, besides provision for a music system.
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COMPARISON OF THREE COMMERCIAL VEHICLES TATA VENTURE, MAHINDRA XYLO & CHEVROLET TAVERA
SPECIFICATIONS
Tata Venture
GX

Mahindra Xylo
E4 BS IV

Chevrolet Tavera
B2-7 seats BSIII

Engine
5,07,000
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7,90,400

7,35,287

Engine Type

Turbo Diesel engine

In-Line Engine

In-Line Engine

Engine Description

475 IDI, Turbo Intercooled Diesel Engine 1405

2.5L 112bhp m-Eagle CRDe, 4-cyl. Turbocharged 2498

2.5L 80bhp Direct Injection Turbo Diesel 2499

Engine Displacement(cc) No. of Cylinders

Maximum Power

71 PS at 4500 rpm

112bhp at 3800 rpm

80 @ 3,900 (PS@rpm)

Maximum Torque

135 Nm at 2500 rpm

260 Nm at 1800-2200 rpm 4

19 @ 1,800 (kgm@rpm) 2

Valves Per Cylinder

Turbo Charger

Yes

Yes

Yes

TransmissionSteering& Brake System

Tata Venture
GX

Mahindra Xylo
E4 BS IV

Chevrolet Tavera
B2-7 seats BSIII

5,07,000
Transmission Type Manual

7,90,400
Manual

7,35,287
Manual

Gear box

5 Speed Manual Transmission

5 Speed

5 Speed

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Drive Type

Two Wheel Drive

Two Wheel Drive

Two Wheel Drive

Steering Type

Power

Manual

Manual

Front Brake Type

Disc

Ventilated Disc

Ventilated Disc

Rear Brake Type

Drum

Drum

Drum

Fuel & Other Specifications

Mileage-City (kmpl) Mileage-Highway (kmpl) Fuel Type Fuel Tank Capacity (litres) Emission Norm Compliance Seating Capacity

Tata Venture GX
11.5 15.42 Diesel 35 BS III 8

Mahindra Xylo E4 BS IV
11.0 14.0 Diesel 55 BS IV 7

Chevrolet Tavera B2-7 seats BSIII

11.5 14.8 Diesel 55 BS III 7

FEATURES
Tata Venture
GX

Mahindra Xylo
E4 BS IV

Chevrolet Tavera
B2-7 seats BSIII

Comfort & Convenience

5,07,000
Power Steering Yes

7,90,400
Yes

7,35,287
No

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Power Windows-Front

Yes

Yes

No

Automatic Climate Control Low Fuel Warning Light

No

No

No

Yes

Yes

Yes

Accessory Power Outlet

Yes

Yes

No

Vanity Mirror

Yes

No

No

Rear Reading Lamp

Yes

No

Yes

Height Adjustable Front Seat Belts Cup Holders-Front

Yes

No

No

Yes

Yes

No

Seat Lumbar Support

Yes

No

No

Interior

Tata Venture GX
Yes

Mahindra Xylo E4 BS IV
Yes

Chevrolet Tavera B2-7 seats BSIII

Yes

Air Conditioner

Heater

Yes

Yes

Yes

Adjustable Steering Column

Yes

Yes

No

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Tachometer

Yes

No

No

Electronic MultiTripmeter Fabric Upholstery

Yes

No

No

Yes

No

Yes

Glove Compartment

Yes

No

Yes

Digital Clock

Yes

Yes

No

Digital Odometer

Yes

Yes

Yes

Exterior

Tata Venture GX
Yes

Mahindra Xylo E4 BS IV
No

Chevrolet Tavera B2-7 seats BSIII

No

Fog Lights - Front

Manually Adjustable Ext. Rear View Mirror Rear Window Washer

Yes

Yes

Yes

Yes

Yes

No

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Rear Window Defogger

Yes

No

No

Wheel Covers

Yes

Yes

No

Tinted Glass

Yes

Yes

Yes

IntergratedAntenna

Yes

No

No

SAFETY INFORMATION
Tata Venture GX SAFETY FEATURES
Price- 5,07,000 Price- 7,90,400 Price- 7,35,287

Mahindra Xylo E4 BS IV

Chevrolet Tavera B2-7 seats BSIII

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Power Door Locks

Standard

Standard

Not Available

Child Safety Locks

Standard

Standard

Standard

Passenger Side Rear ViewMirror

Standard

Standard

Standard

Halogen Headlamps

Standard

Standard

Standard

Rear Seat Belts

Standard

Standard

Standard

Side Impact Beams

Standard

Standard

Standard

Front Impact Beams

Standard

Standard

Standard

Adjustable Seats

Standard

Standard

Not Available

Engine Immobilizer

Standard

Standard

Not Available

ECONOMIES OF ROAD TRANSPORT OPERATION

AREA OF OPERATION TYPE OF VEHICLE COST OF VEHICLE INSURANCE & TAX

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HALDIPOKHAR & TATA TATA MAGIC Rs.- 3,24,283/15900 + 4500 = 20,400/-

AVERAGE NO. OF PER DAY AVERAGE RUN PER DAY -

25 50 KM ( 50 X 4 = 200 KM) 4 TRIPS PER DAY Rs. 600 PER TRIP ( 600 X 4 = 2400)

AVERAGE EARNING PER DAY -

AVERAGE EARNING PER MONTH - 2400 X 25 = 60000

AVERAGE RUN PER DAY

200 KM PER DAY 200 X 25 = 5000 KM 18 KM / LIT. TOTAL 278 KM / LIT. PER MONTH Rs. 40 PER LIT. X 278 LIT. = 11120 Rs. 11120 + Rs. 800 = Rs. 11920

AVERAGE RUN PER MONTH AVERAGE RUN PER LITRE -

TOTAL FUEL CONSUMTION -

PER MONTH [ @DIESEL LIT. OIL + MOBIL ]

1) 2) 3) 4) 5) 6) 7)

AMT. OF MONTHLY FUEL CONSUMPTION TAX + INSURANCE DEPRECIATION INTEREST SALARY OF DRIVER REPAIR & REPLACEMENT LIVING EXP. -

11920 1000 6000 1800 5500 2000 5000

___________ TOTAL EXP. 33,220

NET PROFIT = TOTAL EARN TOTAL EXPENSE = 60000 33220 = Rs.26,780

Rural Marketing
Introduction
Rural Markets are defined as those segments of overall market of any economy, which are distinct from the other types of markets like stock market, commodity markets or Labor economics. Rural Markets constitute an important segment of overall economy, for
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example, in the USA, out of about 3000 counties, around 2000 counties are rural, that is, nonurbanized, with population of 55 million. Typically, a rural market will represent a community in a rural area with a population of 2500 to 30000. Marketing today has changed the dynamics of the business. As the consumers are getting informative, the business is becoming competitive day-by-day. Marketers are seeking fresher challenges everyday and are looking to increase their realm. The urban consumer has been coddled till now but this market is shrinking, prompting the marketer to now explore the rural consumers, which promises a huge potential. The market has enough scale to offer and enough desire to consume. The consumer in the Indian hinterland is ready and waiting to be served.

What Constitutes the Rural Market?

The census of India defines rural as any habitation where the population density is less than 400 per sq. km, and where at least 75 per cent of the male working population is engaged in agriculture, and where there isn't any municipality or board. Having said that, there are about 600,000-odd villages in India. Leaving aside Hindustan Lever and ITC, most FMCG Sector would define rural as any place with a population below 20,000. Similarly, durable and agriinput companies consider any town with a population below rural, primarily because the adjoining villagers come to shop there for say a television set.

The Rural Market Potential.

The rural market has been growing steadily over the past few years and is now even bigger than the urban market. At present 53 per cent of all FMCGs and 59 per cent of all consumer durables are being sold in rural India. The biggest FMCG Company in India HLL derives more than half of its Rs. 12,000 crore revenues from the rural markets. Though there is a high component of sales in some particular product categories like radios, watches, cassette players, the penetration
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levels are abysmally low, and therefore, offer tremendous potential for growth. The rural market is an enigma for the companies. Due to the lack of deeper insights into the psyche of the rural consumers, companies are hesitant to explore this territory. But local brands, like "Ghadi" detergent in Kanpur, have been able to successfully tap the opportunities presented by this market. A look at some facts, which will clear the doubts of skeptics about the potential of rural markets in India: -

About 285 million reside in urban India as compared to 742 million in rural India. The number of middle income and high-income household in rural India is expected togrow from 80 million to 111 million by 2010 while urban India is expected to grow from 46 million to 59 million. 53 per cent of all FMCGs and 59 per cent of all consumer durables are sold in rural India. Number of poor household is expected to shrink by half to 28 million in 2009-10 from 61 million in 1997-98, taking rural people from poverty to prosperity.

Rural marketing involves addressing around 700 million potential consumers, over 40 percent of the Indian middle-class, and about half the country's disposable income. The Indian rural market is almost twice as large as the entire market of USA or Russia. The rural market for FMCG is Rs. 65,000 crore, for durables Rs. 5,000 crore, for tractors and agri-inputs Rs. 45,000 crore and two- and four-wheelers, Rs. 8,000 crore. In total, a whopping Rs. 1,23,000 crore.

Thus, looking at the opportunities, which rural markets offer to the marketers. it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage.

Opportunities Infrastructure is improving rapidly -

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In 62 years only, 40% villages have been connected by road, in next 10 years another 30% would be connected. More than 90% villages are electrified, though only 44% rural homes have electric connections. Rural telephone density has gone up by 300% in the last 10 years; every 1000+ pop is connected by STD. Social indicators have improved a lot between 1981 and 2001 Number of "pucca" houses doubled from 22% to 41% and "kuccha" houses halved (41% to 23%). Percentage of BPL families declined from 46% to 27%. Rural literacy level improved from 36% to 59%. Proliferation of large format Rural Retail Stores, which have been successful also DSCL Haryali Stores M & M Shubh Labh Stores TATA / Rallis Kisan Kendras Escorts Rural Stores Warnabazaar, Maharashtra (Annual Sale Rs. 40 crore)

SCOPE OF RURAL MARKETING The Census of India defines rural as any habitation: With a population density of less than 400 per sq.km. Where at least 75% of the male working population is engaged in agriculture.

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Where there exist no municipality or board.

If we go by statistics, roughly around 70% of the Indian population lives in the rural areas. Thats almost 12% of the world population.To expand the market by tapping the countryside, more and more MNCs are foraying into India's rural markets. Among those that have made some headway are Hindustan Lever, Coca-Cola, LG Electronics, Britannia, Standard Life, Philips, Colgate Palmolive and the foreign-invested telecom companies.

RURAL MARKETING

CHALLENGES IN RURAL MARKETING

There are several roadblocks that make it difficult to progress in the rural market. Marketers encounter a number of problems like dealing with physical distribution, logistics, proper and effective deployment of sales force and effective marketing communication when they enter rural markets. The major problems are listed below.
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1. Standard of living: The number of people below the poverty line is more in rural markets. Thus the market is also underdeveloped and marketing strategies have to be different from those used in urban marketing. 2. Low Literacy Levels: The low literacy levels in rural areas leads to a problem of communication. Print media has less utility compared to the other media of communication. 3. Low per capita income : Agriculture is the main source of income and hence spending capacity depends upon the agriculture produce. Demand may not be stable or regular. 4. Transportation : Transportation is one of the biggest challenges in rural markets. As far as road transportation is concerned, about 50% of Indian villages are connected by roads. However, the rest of the rural markets do not even have a proper road linkage which makes physical distribution a tough task. Many villages are located in hilly terrains that make it difficult to connect them through roads. Most marketers use tractors or bullock carts in rural areas to distribute their products. 5. Warehousing : is another major problem in rural areas, as there is hardly any organized agency to look after the storage issue. The services rendered by central warehousing corporation and state warehousing corporations are limited only to urban and suburban areas. 6.Lack of communication system : Quick communication is the need of the hour for smooth conduct of business, but it continues to be a far cry in rural areas due to lack of communication facilities like telegraph and telecommunication systems etc. The literacy rate in the rural areas is rather low and consumers behavior in these areas is traditional, which may be a problem for effective communication. The number of languages and dialects vary from state to state region to region This type of distribution of population warrants appropriate strategies to decide the extent of coverage of rural market. 7. Spurious brands : Cost is an important factor that determines purchasing decision in rural areas. A lot of spurious brands or look-alikes are available, providing a low cost option to the rural customer. Many a time the rural customer may not be aware of the difference due to illiteracy.

8. Availability: The first challenge in rural marketing is to ensure availability of the product or service. India's 7, 00,000 villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. They are highly dispersed. India's largest MNC, Hindustan Lever, a subsidiary of Unilever, has built a strong distribution system which helps its brands reach the interiors of the rural market. To service remote village, stockists use auto
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rickshaws, bullockcarts and even boats in the backwaters of Kerala. Coca-Cola, which considers rural India as a future growth driver, has evolved a hub and spoke distribution model to reach the villages. To ensure full loads, the company depot supplies, twice a week, large distributors which who act as hubs. These distributors appoint and supply, once a week, smaller distributors in adjoining areas. LG Electronics has set up 45 area offices and 59 rural/remote area offices to cater to these potential markets. 9.Affordability : The second major challenge is to ensure affordability of the product or service. With low disposable incomes, products need to be affordable to the rural consumer, most of who are on daily wages. A solution to this has been introduction of unit packs by some companies. This ensures greater affordability. Most of the shampoos are available in smaller packs. Fair and lovely was launched in a smaller pack. Colgate toothpaste launched its smaller packs to cater to the traveling segment and the rural consumers. Godrej recently introduced three brands of Cinthol, Fair Glow and Godrej in 50- gm packs. Hindustan Lever has launched a variant of its largest selling soap brand, Lifebuoy. Coca-Cola has addressed the affordability issue by introducing the smaller bottle priced at Rs 5. The initiative has paid off: Eighty per cent of new drinkers now come from the rural markets. A series of advertisement for this was rune showing people from diverse backgrounds featuring Aamir Khan. 10.Acceptability: The next challenge is to gain acceptability for the product or service. Therefore, there is a need to offer products that suit the rural market. LG Electronics have reaped rich dividends by doing so. In 1998, it developed a customized TV for the rural market named Sampoorna. It was a runway hit selling 100,000 sets in the very first year. Coca-Cola provided low-cost ice boxes in the rural areas due to the lack of electricity and refrigerators. It also provided a tin box for new outlets and thermocol box for seasonal outlets. The insurance companies that have tailor-made products for the rural market have also performed well. HDFC Standard LIFE topped private insurers by selling policies worth Rs 3.5 crore in total premia. The company tied up with non-governmental organizations and offered reasonably-priced policies in the nature of group insurance covers. The initiatives of CCI in distribution and pricing were supported by extensive marketing in the mass media as well as through outdoor advertising. The company put up hoardings in villages and painted the name Coca Cola on the compounds of the residences in the villages. Further, CCI also participated in the weekly mandies by setting up temporary retail outlets, and also took part in the annual haats and fairs - major sources of business activity and entertainment in rural India. CCI also launched television commercials (TVCs) targeted at rural consumers. In order to reach more rural consumers, CCI increased its ad-spend on Doordarshan The company ensured that all its rural marketing initiatives were wellsupported by TVCs. When CCI launched Chota Coke in 2002 priced at Rs. 5, it bought out a commercial featuring Bollywood actor Aamir Khan to communicate the message of the price cut and the launch of 200ml bottles to the rural consumers. 11. Awareness : A large part of rural India is inaccessible to conventional advertising media. Only
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41 per cent rural households have access to TV. Building awareness is another challenge in rural marketing. A common factor between the rural and the urban consumer is the interest for movies and music. Family is the key unit of identity for both the urban and rural consumer. However, the rural consumer expressions differ from his urban counterpart. For a rural consumer, outing is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Consumption of branded products is treated as a special treat or indulgence. Hindustan Lever has its own company-organized media. These are promotional events organized by stockists. Godrej Consumer Products, which is trying to push its soap brands into the interior areas, uses radio to reach the local people in their language. Coca-Cola uses a combination of TV, cinema and radio to reach the rural households. It has also used banners, posters and tapped all the local forms of entertainment. Since price is a key issue in the rural areas, Coca-Cola advertising stressed its `magical' price point of Rs 8 per bottle in all media. LG Electronics uses vans and road shows to reach rural customers. The company uses local language advertising. Philips India uses wall writing and radio advertising to drive its growth in rural areas.

SOLUTION TO PROBLEM OF RURAL MARKET

To solve the problems of rural markets in India, the following suggestions can be used by marketers:
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1. Regarding the problems of physical distribution, the marketer may have a joint network of stockist/ clearing-cum-forwarding (C&F) agents at strategic location for facilitation of physical distribution for its products in the rural market. The main advantage of this scheme is that the costs of physical distribution can be shared by the companies and stockists. The combination of different modes of transport based on availability of tracks will be beneficial to the companies. Presently, bullock-cart plays a very vital role in rural distribution where the roads are not available. Some of the leading companies use delivery vans in rural areas for resolving the distribution problems in rural market. The delivery van takes the products to the retail shops in every corner of the rural market and it enables the company to establish direct sales contact with majority of the rural consumers which helps in sales promotion.

2. The rural market is composed of a number of retail sales outlets along with fair price shops under the public distribution system. It is suggested that the government should encourage private shopkeepers and cooperative stores to come forward and establish their business in rural areas instead of the weekly market known as weekly bazaar. Fertilizer companies have opened their outlets for proper distribution of fertilizer among the farmers. Similarly, the companies dealing in consumer goods can apply this model. The company may also appoint a number of retailers in and around the feeder towns and attach them to the stockist who distributes the goods to the retailers as per the potential of the market. This system has the benefit of penetrating into the interior areas of the rural markets.

3. To solve the problems of sales force management, it is suggested that the company takes due care in the recruitment and selection of sales people because the traits they require are different from urban and suburban sales persons. For the rural markets, only those sales people should be preferred for selection who is willing to work in rural areas. They must be aware of the local language and must have the patience to deal with rural customers and can discharge the duties of a bare-footed salesman. Administration of such a large and scattered sales force, supervising and supporting them in sales calls, guiding them, attending to their official and personal problems, and motivating them for better results should be an exacting task for the sales manager. Thus, the people operating in rural areas should invariably be from the rural background and should have a missionary zeal to serve the rural masses.

4. With reference to marketing communication in rural areas, the company should use organized media-mix like TV, Radio, cinema and POP (point of purchase) advertising. Television is gaining popularity in the rural areas but due to poor supply of electricity, radio is performing significantly better. Since, the rural people need demonstration, short-feature films with
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disguised advertisement messages, direct advertisement films and documentaries that combine knowledge and advertisements will perform better rural marketing communication. Here the companies may also use audiovisual publicity vans, which may sell the products with promotion campaign. To attract the rural consumers, companies can organize village fairs, dance and drama shows, group meetings to convince the rural consumers about the products and services. In most Indian villages, there are some opinion leaders. For the rural markets, only those sales people should be preferred for selection who is willing to work in rural areas like Sarpanch, Pradhan and other elderly persons. They can be approached by the marketers to propagate their messages; these persons can prove to be effective communicators within the rural mass

RURAL PENETRATION
The size of rural markets, demographic profile of the rural market and market volume help us to
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draw a broad mental picture of the rural markets. The number of villages, population and the number of households indicates the market size. The demo- graphic profile of the rural market is described in terms of household size, sex distribution, literacy levels, occupation and income. The major challenges faced by TATA MOTORS in rural areas relate to the difficulties in reaching the geographically spread out market. In addition to this, the market density is low and therefore the cost of reaching the market increases substantially. So for penetrating into the rural market TATA MOTORS has come up with two rural penetration strategies: 1. 2. PMGSY ( Pradhan Mantri Gram Sadak Yojna ) NGO ( Non Governmental Organization )

PMGSY

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Rural Road Connectivity is not only a key component of Rural Development in India, it is also recognised as an effective Poverty reduction Programme. Notwithstanding the efforts made, over the years, at the State and Central levels, through different Programmes, about 40% of the Habitations in the country are still connected by all weather roads. It is well known that even where connectivity has been provided, the roads constructed are of such quality that they cannot be categorised as All-weather roads. Government have resolved to provide Rural Road Connectivity to all habitations and accordingly decided that 50% of the Cess on High Speed Diesel (HSD) would be earmarked for this Programme. Accordingly, Rs. 2500 crore (being 50% of the Cess on High Speed Diesel (HSD) has been earmarked for the purpose during the year 2000- 2001.

(Depicting submersible bridge constructed under PMGSY to provide connectivity)

On the 15th August 2000, the Prime Minister announce a Centrally Sponsored Scheme called the Pradhan Mantri Gram Sadak Yojana with the objective of connecting, within next three years, every village that has a population of more than 1000 through good All-weather roads and every village of more than 500 persons similarly connected by the year 2007. The budget for the year 2009-2010 indicates the flow of funds for Rural Roads as Additional Central Assistance. Since this has been taken into consideration while determining the Plan size of States, it is proposed to retain the arrangement as such for this year. From the year 2001-2002 onwards, it is proposed to commence a 100% Centrally Sponsored Scheme, with the same objectives. In the state of Jharkhand, PMGSY has been taken up where land is available. Though along few corridors, need for private land has been identified upto 2-3 meters, locations where (1)curve improvements, (2) passing places, (3) design improvements for safety, and (4) any
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suggestion by the community. The land requirements are accomplished through voluntary land donation in case of private land transfer and inter-departmental transfers for government land. With the scheme of PMGSY, TATA MOTORS has spotted a big opportunity to penetrate into the rural market. The newly built roads under the PMGSY scheme , provide connectivity to the large number of villages with each other and has increased the demand of public carrier vehicles within these areas.

NGO
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(Non Governmental Organization)

A non-governmental organization (NGO) is a legally constituted organization created by natural or legal persons that operates independently from any government. The term is usually used by governments to refer to entities that have no government status. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. The term is usually applied only to organizations that pursue some wider social aim that has political aspects, but that are not overtly political organizations such as political parties. Unlike the term "intergovernmental organization", the term "non-governmental organization" has no generally agreed legal definition. In many jurisdictions, these types of organization are called "civil society organizations" or referred to by other names. Tata Motors has came up with the strategy of penetrating into the rural market through the NGOs. The company works with the NHRM (National Health and Rural Management) and other NGOs along with the Block Development Officers to sell the SCPV (Small Commercial Pessanger Vehicle) through its workers. The company is mainly focusing on the sell of TATA Magic in the rural areas.

Working of NGOs in Jharkhand

NHRM is an active NGO running in Jharkhand. It constitutes of Village Health Committees (VHCs) which are formed with ANMs and Sahiyyas. These sahiyyas and ANMs help in providing health care facilities to the people in rural areas. Every center or block has a block officer who looks after the working and funding of NGOs. Every block has a day fixed for their weekly meetings with the ANMs and Sahiyyas. Block Development officers distribute funds to different Mahila Samiti Societies and Village level Societies for development on recommendation of S.H.G (Self Help Group) and V.L.W ( Village level Workers). Initially Rs. 25,000 loans is given to these groups and if the repayment is done within the stipulated time then simultaneously the funding is increased upto Rs 5 lacs. Based on demand and mutual consent of group , samities invest in purchasing Vehicles , Tractors , Tube wells etc which are of daily uses. Bank gives a subsidy of Rs 1.25 lacs on such loans for the purchasing of vehicles, tractors, etc

Working plan of TATA MOTORS

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 Train NGOs workers to meet such S.H.G /Samities and influence for Magic & Winger Sale to different societies. If any of the workers bring an enquiry and the documents of the customer in the rural areas, we will give incentive of Rs 300 immediately, and if the enquiry gets retailed, we give an additional Rs 700 per vehicle.

Coordination strategy
Appoint a person who is well versed with the rural marketing, who would look after the working with the NGO. Check if the enquiries are already available with the executives of mithila motors. If not,the incentives would be passed down. Act a link between NGO and mithila motors and subsequently with TSM. Future Plans Meetings fixed with different block officers. Works with different NGOs like Yuva Group. Amma Research Manav Sudhar TRDS which is a NGO of the TATA Group itself.

With the success of these strategies in and around jamshedpur,the work will be done in dhanbad and bokaro.

RESEARCH METHODOLOGY DATA COLLECTION METHOD

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For doing any research work, a well planned out research design is devised so as to facilitate the research work. It owes both time and resources.

Types of data and data collection: Data that I have received for making the project is a combination of both primary and secondary data SUBJECT OF THE RESEARCH
The study undertaken for the study is an empirical study of Survey of demand of SCV passenger of TATA MOTORS in rural market..

DATA ANALYSIS

GRAPHS AND CHARTS

Frequency Table is the respondent owner or driver Valid Cumulative Frequency Percent Percent Percent Valid owner driver Total 31 19 50 62.0 38.0 100.0 62.0 38.0 100.0 62.0 100.0

Result- hence we can say that among the sample size of 50, 62% of the respondents were owner of the vehicle and 38 % were driver. Hence we can say that most of the people prefer to drive their vehicle by their own rather than giving it on daily-rent basis.

BAR CHART

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age of the respondent Cumulative Frequency Valid 18-25 26-33 34-41 42-49 50-57 Total 8 12 25 4 1 50 Percent 16.0 24.0 50.0 8.0 2.0 100.0 Valid Percent 16.0 24.0 50.0 8.0 2.0 100.0 Percent 16.0 40.0 90.0 98.0 100.0

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Frequency Valid bajaj 2 2 20 26 50

Percent 4.0 4.0 40.0 52.0 100.0

Valid Percent 4.0 4.0 40.0 52.0 100.0

Cumulative Percent 4.0 8.0 48.0 100.0

mahindra gio piaggio tata magic Total

Vehicle models

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for how long the vehicle is being used Cumulative Frequency Valid 0-1 1-2 2-3 3-4 more than 4 years Total 13 13 13 9 2 50 Percent 26.0 26.0 26.0 18.0 4.0 100.0 Valid Percent 26.0 26.0 26.0 18.0 4.0 100.0 Percent 26.0 52.0 78.0 96.0 100.0

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distance travel per day Cumulative Frequency Valid 0-50 50-100 100-150 150-200 more than 200 Total 31 15 2 1 1 50 Percent 62.0 30.0 4.0 2.0 2.0 100.0 Valid Percent 62.0 30.0 4.0 2.0 2.0 100.0 Percent 62.0 92.0 96.0 98.0 100.0

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trips per day Cumulative Frequency Valid 1 3 4 more than 4 Total 10 12 6 22 50 Percent 20.0 24.0 12.0 44.0 100.0 Valid Percent 20.0 24.0 12.0 44.0 100.0 Percent 20.0 44.0 56.0 100.0

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fuel consumption rate Cumulative Frequency Valid 10-15 15-20 20-25 25-30 Total 11 21 3 15 50 Percent 22.0 42.0 6.0 30.0 100.0 Valid Percent 22.0 42.0 6.0 30.0 100.0 Percent 22.0 64.0 70.0 100.0

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mode of payment

Cumulative Frequency Valid yes no Total 24 26 50 Percent 48.0 52.0 100.0 Valid Percent 48.0 52.0 100.0 Percent 48.0 100.0

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daily income Cumulative Frequency Valid below 300 300-500 Total 28 22 50 Percent 56.0 44.0 100.0 Valid Percent 56.0 44.0 100.0 Percent 56.0 100.0

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seating capacity of the vehicle Frequency Percent Valid Percent Cumulative Percent Valid 5 6 7 8 more than 8 6 Total 2 1 8 12 26 1 50 4.0 2.0 16.0 24.0 52.0 2.0 100.0 4.0 2.0 16.0 24.0 52.0 2.0 100.0 4.0 6.0 22.0 46.0 98.0 100.0

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type of stering Cumulative Frequency Valid handle wheel Total 20 30 50 Percent 40.0 60.0 100.0 Valid Percent 40.0 60.0 100.0 Percent 40.0 100.0

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aware about tata's vehicle Cumulative Frequency Valid yes no Total 41 9 50 Percent 82.0 18.0 100.0 Valid Percent 82.0 18.0 100.0 Percent 82.0 100.0

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STATISTICAL TOOL AND TECHNIQUES:

(1)

ANOVA design of tata's vehicle is better than that of competitor

Sum of Squares

df

Mean Square

Sig.

Between Groups Within Groups Total

.705 8.415 9.120

4 45 49

.176 .187

.943

.448

Dependent var: design Independent var: how long you are using a vehicle?

(2)

ANOVA the seating capacity of the vehicle currently used by the customer

Sum of Squares

df

Mean Square

Sig.

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Between Groups Within Groups Total

21.743 43.077 64.820

4 45 49

5.436 .957

5.678

.001

Dependent var : Seating capacity Independent var: how long you are using a vehicle?

(3) ANOVA the fuel Efficiency of the vehicle currently used by customer

Sum of Squares

df

Mean Square

Sig.

Between Groups Within Groups Total

6.652 108.068 114.720

4 45 49

1.663 2.402

.692

.601

Dependent: fuel efficiency Independent var: how long you are using a vehicle?

(4)

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ANOVA speed of tata's vehicle is better than that of competitors

Sum of Squares

df

Mean Square

Sig.

Between Groups Within Groups Total

2.223 41.697 43.920

4 45 49

.556 .927

.600

.665

Dependent var : speed Independent var: how long you are using a vehicle?

(5)

ANOVA comfort in tata's vehicle is more than that of competitors

Sum of Squares

df

Mean Square

Sig.

Between Groups Within Groups Total

1.027 13.453 14.480

4 45 49

.257 .299

.859

.496

Dependent : comfort Independent var: how long you are using a vehicle?

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ANALYSIS 1.

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CONCLUSION
There is no doubt that the rural India offers tremendous opportunity for any company to tap. However, companies face many challenges in tackling the rural markets. Some of the important factors being an understanding of the rural customers' needs, a reliable distribution channel, and an effective marketing communication strategy to put their message across to the rural consumer. This calls for a paradigm shift in the thinking of the top management of the companies, which have been reluctant to realize the potential of rural markets. The mantra for success can be further augmented by the Four A Framework (Affordability, Acceptability, Accessability & Awareness). These factors will go a long way in providing the company with market value coverage along with a steady source of revenues. The companies which are going to keep in mind the above stated factors are sure to emerge as winners in the rural markets. Thus, looking at the challenges and the opportunities, which rural markets offer to the marketers, it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for, so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India.

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REFERENCES
Books : 1. 2. Research Methodology by C. Kothari MAGAZINES & News-papers & Pamphlets: 1.Business Standards. 2. The Economic Times. 3.Business world. 4.Company pamphlets. WEB SITES: magic-tatamotors.com. www.siam.com carblogindia.com. autosmaxabout.com. auto.indiamart.com.

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