V.I.

A MARKET SURVEY ON HOW TO INCREASE SALE OF EXCEL-4 (LCV)

CONDUCTED AT FORCE MOTORS LIMITED, AKRUDI, PUNE

SUBMITTED TO UNIVERSITY OF PUNE IN PARTIAL FULFILMENT OF THE MASTERS OF BUSINES ADMINSTRATATION

SUBMITTED BY ABHIJEET S. NIMBALKAR

UNDER THE GUIDANCE OF PROF.SURESH ABHYANKAR

VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE. (2004-2006)

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Acknowledgement
At the very outset, I am very thankful to the management of Force Motors Ltd., which provided me an opportunity to do the project in the company. I am indebted to Mr. Cyriac Jacob (GM Marketing) and Mr. Abhijeet Malwadkar (Dy.Manager Marketing) who guided me at every instant during the course of the project work and inspired me with their ideas and was always willing to lend a helping hand. I would like to specially thank Mr. Shankar Raj (Sr. Marketing Executive) and Mr. Gaurav Gupta (Sr. Marketing Executive) who encouraged me always and helped me from the very beginning till the final stage of the project. I would like to express my gratitude to all the dealers from Pune, Mumbai, Chennai, Madurai and Coimbatore who co-operated and provided me the necessary information for my project work. I am also thankful to Mr. Arun Kumar (Business Manager,Chennai ), Mr. Arul Mhanalan (Sales Executive,Chennai) and Mr.Jude Deepak (Sr. Marketing Executive) Mr. Sudan Kumar (Works Manager, Coimbatore) for their helping hand in collecting facts and feedback from the customers. I am also thankful to the Marketing Department and all the people who directly or indirectly helped me during the course of the project. My sincere regards & gratitude to my Director Dr.Sharad Joshi for having given me the support throughout my project & has thus made me capable of being worthy of recognition. I am whole-heartedly thankful to my guide Prof. Suresh Abhyankar who has been most cooperative & encouraging personality who guided me in completing this project.

Abhijeet S. Nimbalkar

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CHAPTER NO. I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII.

CHAPTER NAME EXECUTIVE SUMMARY COMPANY PROFILE PRODUCT PROFILE OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY INTERPRETATION & ANALYSIS FINDINGS CONCLUSION RECOMMENDATIONS LIMITATIONS BIBLIOGRAPHY ANNEXURE

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EXECUTIVE SUMMARY
1. Major objective: How to increase the sale of EXCEL 4. 2. Minor objective: To analyze and identify the potential market segment for goods industry To find out areas of improvement in EXCEL 4 vis- a- vis competition. FINDINGS:Excel 4 vehicles are best suited for the applications, which include the following A. High speed B. Low cost. C. Low tonnage.

Overloading capacity of TATA 407 is higher than EXCEL 4. Spares availability is poor and maintenance cost is higher in case of EXCEL-4

CONCLUSION:TATA 407 is a better product as compared to EXCEL-4. Spares availability of EXCEL-4 is very poor. Spares cost should be reduced of EXCEL-4 vehicle. RECOMMENDATIONS:I. Satisfying existing customers. II. Increasing the spare parts network. III. Convincing the local tempo stand union leaders iv. Ensuring spare parts availability V. Customer pull promotional schemes

LIMITATIONS Language Barriers. The data collected represents the whole population. Ignorance by the customers and not proving the relevant information.

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COMPANY PROFILE Company: A company that has reinvented itself. A fully vertically integrated automobile company, with expertise in Design, Development and Manufacture of the full spectrum of Automotive Components, Aggregates and Vehicles. Our range includes three wheelers, multi utility and cross-country vehicles, light commercial vehicles, tractors and now heavy commercial vehicles. The word Force is not just the product of 'mass' and 'acceleration'. It reflects our values of ethical business, our strength in technology, in manufacturing and our energy in product development. It is also the binding force in our close and mutually beneficial relations with our customers, dealers, suppliers and business associates. Force is the dynamism with which we venture into our future supported by the array of Technical Collaborations and Business Alliances with world leaders like MAN, Daimler Chrysler and ZF. Today Tempo makes the new family of tempo trax, the new tempo excel, the Minidor 75 ranges of vehicles & the tempo Ox range of tractors. These are products born out of tempo s own research & development activity. The product designs for these ranges of most modern vehicles were created in their overfull capability of Computer Engineering Environment. The Tempo R&D center is among the most advanced in the country with a 100 terminal (CAD) COMPUTER AIDED DESIGN NETWORK. Over 90% of the vehicles currently manufactured & sold by Tempo are the latest designs where introduction is less than 5 years old. The engines designed by Tempo are fully proven for emission and for fuel efficiency. The Tempo vehicles offer green engines meeting EURO II norms.

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Company Mission We endeavor to reach the leadership position in each segment/Sector of our product and services. We are committed to satisfy our customers by providing such quality product/Services, which gives to highest value for money. We believe that our employees are our most important assets through which we can reach the top in each category of our product and service; therefore we will focus on their continuous improvements through up gradation of relevant knowledge and training. Tempo Group comprises of following companies: Force Motors Limited. Jai Hind

Late Shri N.K.Firodia, a dedicated Gandhian and Visionary Industrialist, was the Founder-Managing Director of the company. Having participated in the freedom struggle for India in 1932 and 1942, was determined to achieve Industrial modernisation for India. He established, with Vidal starting & in 1950, in

Collaboration

Sohn,

Hamburg,

Germany the import and later progressive manufacture in India of the Tempo 3Wheeler. On 15th August 1957, the 10th

anniversary of Indian independence, Mr. N.K.Firodia signed a collaboration with Vidal & Sohn Tempo Werke GmbH for phased manufacturing of TEMPO 3-WHEELER & manufacturing was started in a

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small plant at Goregaon, Bombay. The initial licensed capacity granted by the government was 1000 per year and 80 vehicles per month.

Expanding the business in 1961, the Company acquired about 150 acres of land in Akurdi near Pune. The production was transferred to Pune by the end of 1964. Ambitious plans for producing Light Commercial Vehicles for the growing industrial economy of India were drawn up. The manufacture of TEMPO VIKING 4-Wheeled Trucks & Vans commenced in November 1964. The licensed capacity was increased to 6000 vehicles per year. The VIKING vehicle subsequently was upgraded with a diesel engine and the MATADOR was born. The production of Matador commenced in 1969. In 1975, the manufacturing capacity of the company was increased to 12,000 vehicles per year, in addition to 6,000 diesel engines for other purposes. The collaborator company in Germany, in the wave of mergers during the 70 s merged eventually with Daimler-Benz. In July 1982, the company in a new collaboration - with the then Daimler Benz - produced the Mercedes Benz OM 616 engine under license for fitting on its line of vehicles. The TEMPO TRAX Vehicle, specifically designed for the rough roads of rural India was developed by the Company's Research & Development department, to cater to the growing mechanisation of passenger transport in rural India. To further modernise its LCV product range, the Company took up the production of the TEMPO TRAVELLER, under

licence from Daimler-Benz. A

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new Plant was set up in 1987, on a greenfield site in Central India at Pithampur in Madhya Pradesh. This modern facility was developed in close co-operation with Daimler-Benz.

The plant is equipped with a modern conveyorised body welding and Electrophoretic dip painting shop. The Plant has been expanded to house a new Press Shop in 1997.

In

1996,

the

company

introduced a new range of Three Wheelers - MINIDOR pick up and auto rickshaw. These vehicles were completely designed in house using its own modern Computer aided Design and Computer Aided Manufacturing facilities .

In

1997, a

the

company

conceived

technologically

superior tractor, the OX, as a diversification and the OX 45, a 45 HP tractor was introduced. The tractor was designed using Transmission technology from ZF, Germany, technical assistance for engine from AVL, Austria and hydraulics technology from Bosch. A 35 HP version of the tractor, the OX 35 was introduced in 1999. During 2002, 25 HP OX-25 was added to its range. The company launched Balwan range of tractors in 2003.

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In 1999, The EXCEL range of state of the art Light Commercial Vehicles was introduced. These

vehicles with their superb ergonomics and superior aggregates represent the latest generation of LCV s in India that can carry payloads upto 4 tonnes.

Continuing with the efforts to introduce new products, the company in the year 2000 introduced two new - highly refined vehicles - specially designed for the Indian market.- Trax JUDO and Trax GAMA. Trax JUDO, now with a Euro II compliant engine, all metal body, excellent fit and finish is the All Rounder multi utility vehicle, with both air conditioning and power steering as standard options. Trax GAMA also features a full metal body and fine fit and finish, with a most economical DI engine. The GAMA is thus the Ideal People Carrier, for rural as well as urban transportation needs. In the Year 2000, the Pithampur plant and its Mercedes Engine facilities received the prestigious ISO 9002 certification for quality systems. In year 2003 , the entire Akurdi plant and Pithampur Plant were certified to ISO 9001 : 2000. In 2004 , Engine Plant assembling Daimler Chrysler engines was certified to TS 16949 : 2002 . In a historic agreement with MAN world leaders

in engines and truck technology, the company formed a new alliance in 2004. This alliance enables us to produce trucks that have the latest technology

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and possess highly reliable engines. The agreement also supports the achievements of global sourcing targets and export potential for both companies. In October 2004, the company took another momentous step by entering into a comprehensive Technological Agreement with ZF the world leaders in transmission technology. ZF has its production facilities spread across three continents. This agreement enabled the company to acquire both product and process technology.

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PRODUCT PROFILE

Tractors: Balwan 500 Balwan 400 Balwan 300 Balwan 450 OX 25

Three Wheelers: Minidor Autorichshaw Minidor Delivery Van Minidor Comfort Cabin Pick up Minidor Pick up.

MUV:-

Muv-Goods Carriers Delivery Van Kango King Kango King DCPU

Muv-Passenger Carriers Challenger Ambulance Cruiser Classic Judo

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LCV:EXCEL 4 Traveller Delivery Van Travelelr Ambulance Traveler passenger Citiline School Bus and Office vehicle.

HCV:Full Range of HCVs from 16 T GVW to 50 T GCW comprising 4x2 and 6x2 rigids,4x2 and 6x4 Tractor Trailers and 4x4, 6x4 and 8x4 special purpose vehicle.Regular production expected to commence from first quarter of 2006.

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OBJECTIVE
PROJECT OBJECTIVE:

To analyze and identify the potential market segment for goods industry. To find out areas of improvement in EXCEL 4 vis- a- vis competition. To study and compare the performance of EXCEL 4 Vs TATA 407 in the major cities of potential markets of Maharashtra and Tamil Nadu.

1.Major objective: How to increase the sale of EXCEL 4.

2.Minor objective: To analyze and identify the potential market segment for goods industry. To find out areas of improvement in EXCEL 4 vis- a- vis competition. To study and compare the performance of EXCEL 4 Vs TATA 407 in the major cities of potential markets of Maharashtra and Tamil Nadu.

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RESEARCH METHODOLOGY
It is a systematic approach of identifying the problem, collecting the information, analyzing the information and providing alternate suggestions. Three type of project research can be distinguished. Some research is exploratory, i.e, to gather preliminary data to shed light on the real nature of the problem and suggest possible hypothesis on new ideas. Some are descriptive i.e., to ascertain certain magnitudes.

FORMAULATION OF OBJECTIVE The first step calls for marketing researcher is to define the problem carefully and agree on the research objectives. The objective must throw light on the problem under study or the aim.

Primary Data Collection Primary data may be described as those data that have been observed and recorded by the researcher for the first time to their knowledge. These data consist of original information gathered for specific purpose. The knowledge of secondary data is essential for planning the collection of primary data. The primary data can be collected in four ways.:- Observation, Focus groups, Survey & Experiments . Secondary Data Collection Secondary data may be described as those data that is collected indirectly through journals, magazines ,booklets ,internet etc. Sampling Unit Who is to be surveyed? The marketing researchers must design the target population that is to be sampled. My project sample was the TATA 407 customers (who purchased the vehicle after 2000) and EXCEL-4 customers.

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Sample Size: How many customers should be surveyed? Larger sample gives more reliable results than smaller samples. However it is not necessary to target the entire customers. I was asked to survey customers from the states of :Maharashtra Mumbai Pune

Tamil Nadu Chennai Coimbatore Madurai.

DATA TOOLS 1.Statistical Tools: a) Simple averages b) Weighted averages c) Mode d) Median 2. Graphical Tools : a) Pie charts b) Radar diagram c) Bar charts d) Line diagram. Sample Size :139

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PILOT TESTING
A questionnaire was prepared and the pilot testing was done in Pune.Ten customers were interviewed for this purpose. The pilot testing results and feed back revealed certain areas to be analyzed and studied. With a few modifications in the questionnaire a detailed study was formulated. This study was carried out in the cities of Maharashtra and Tamil Nadu.

The analysis for the pilot test was done with the basic tools like: Frequency of responses (mode). Average responses.

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ANALYSIS & INTERPRETATION

THE INFORMATION OF THE PREVIOUS AND THE VEHICLE OWNED PRESENTLY BY THE RESPONDENTS. Previous vehicles

Total NONE EXCEL TATA 407 METADOR SWARAJ TATA -HCV EICHER MAHINDRA OTHERS

92 32 3 25 20 2 3 1 2 4

Total NONE TRAVELLER TATA- HCV ASHOK LEYLAND TATA 407 METADOR OTHERS

47 15 1 2 1 7 20 1

CURRENT VEHICLE TATA 407

CURRENT VEHICLE EXCEL 4

ANALYSIS OF PREVIOUS VEHICLE OWNED.

EXCEL
Switch 16% HCV 5% Repeat 0% None 34%

Metador 45% None Metador Switch HCV Repeat

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Repeat 30%

407

HCV 4% Switch 4% None Metador 24% Switch

None 38%

Metador

HCV

Repeat

Repeat purchase of TATA 407 is 30% where as in case of EXCEL 4 is 0%. The new entrants in TATA 407is 38% where as in case of EXCEL 4 is 34%. 24% of TATA 407 customers were having matador as their previous vehicle . 45% of EXCEL 4 customers were having matador as their previous vehicle.

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AREA OF OPERATION
(Total Sample size 139)

operational area intercity

interstate 8% 31%

Intracity 61%

intercity

Intracity

interstate

Fig.01 Area of Operation Intercity Intracity Interstate TATA (Sample size of 92 ) Percentage 31 61 8

operational area
interste 11% intercity 30%

Intracity 59%

intercity

Intracity

interstate

Fig.01 (a) Area of Operation Intercity Intracity Interstate Percentage 30 59 11

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EXCEL (out of a sample size of 47)

operational area
interstate 3% intercity 31%

Intracity 66%

intercity

Intracity

interstate

Fig.02 (b) Area of Operation Intercity Intracity Interstate Percentage 31 67 3

The pattern of operation in all the areas, by both the brands is same except in interstate area. Where TATA 407 has catered to 11% against that of EXCEL 4 s 3%.

Conclusion : FML needs to cater a larger interstate segment.

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As per Rural, Urban and Sub-Urban

(Total Sample size 139)
AREA OF OPERATIONS FOR ALL THE VEHICLES.

rural 5% Sub-Urban 41%

Urban 54%

Fig.02 Area of Operation Rural Sub-Urban Urban Precentage 5 41 54

TATA (Sample size of 92 ) AREA OF OPERATION FOR TATA 407

rural 6%

Urban 53%

Sub-Urban 41%

Fig.02 (a) Area of Operation Rural Sub-Urban Urban Percentage 6 41 53

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EXCEL (out of a sample size of 47) AREA OF OPERATION FOR EXCEL 4

rural 1% Sub-Urban 41%

Urban 58%

Fig.02 (b) Area of Operation Rural Sub-Urban Urban Percentage 1 41 58

TATA 407 s market size for rural segment is 6% whereas that of EXCEL 4 s is only 1%. So, FML needs to concentrate on this segment. Both TATA 407 and EXCEL 4 have acknowledged the urban segment equally. TATA 407 and EXCEL 4 have equally catered the sub urban segment.

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CUSTOMER PROFILE
CUSTOMER PROFILE FOR ALL VEHICLES
Manufacturer 8% Farmer 1% Others 5% Tempo stand operator 35%

On company contract 15% fleet owner 36%

Fig.03 Work Profile Tempo Stand Operator Fleet Owner On Company Contract Farmer Manufacturer Others Percentage 35 36 15 1 8 5

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CUSTOMER PROFILE FOR EXCEL 4 Others 4% Manufacturer 10% Farmer 0% Tempo stand operator 22%

On company contract 23%

fleet owner 41%

Fig.03 (a)

Work Profile Tempo Stand Operator Fleet Owner On Company Contract Farmer Manufacturer Others

Percentage 22 41 23 0 10 4

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CUSTOMER PROFILE FOR TATA 407 Manufacturer Others 5% 6% Farmer 2% Tempo stand operator 43%

On company contract 11% fleet owner 33%

Fig.03 (b) Work Profile Tempo Stand Operator Fleet Owner On Company Contract Farmer Manufacturer Others Observation:The pie chart shows that the Total market size in TEMPO STAND OPERATION is 35%, where TATA 407 s market size is 43% and EXCEL 4 s market size is only 22%. Probable reason: Most Tempo stand operators are single vehicle owners so they don t want to take chance with the new vehicle. Percentage 43 33 11 2 6 5

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TYPE OF LOAD CARRIED IN THE VEHICLE

TYPE OF LOAD CARRIED IN ALL THE VEHICLES
FMCG 6% Stationary 12% Hardware 19% Grocery 10%
Fig.04

Others 13%

Consumer durable 12%

Agricultural product 12% Sand 3%

Parcels 13%

Type of Load Consumer Durable Agriculture Product Sand Parcels Grocery Hardware Stationary FMCG Others 12 12 3 13 10 19 12 6 13

Percentage

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TATA (Sample size of 92)

60 50 40 30 20 29 10 10 0
Sand FMCG Others Grocery Consumer durable Stationary Parcels Agricultural product Hardware

55 33 36 37

30

31

19

Fig.04 (a)
Consumer Agricultural durable product 31 37 NO OF RESP SEGMENT Sand 10 Parcels Grocery Hardware Stationary FMCG 36 30 55 33 19 Others 29

EXCEL (sample size of 47)

25

Fig 20 .04 (b)

15 21 18 13 5 3 0
Sand FMCG Grocery Agricultural product Parcels Stationary Consumer durable Hardware Others(light goods)

10 13 15

9 5

10

SEGMENT NO OF RESP

Consumer Agricultural durable product 15 10

Sand 3

Parcels Grocery Hardware Stationary FMCG 13 9 18 13 5

Others 21

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Observation: -

When EXCEL 4 and TATA 407 both are compared on even scales we see that the agricultural products carried by TATA vehicles is far better and ahead than the Excel vehicles. We are better off in carrying consumer durables and the light goods (Covered under the others category) Like : House hold, garments, Bakery Products. Conclusion: Hence we can conclude that TATA 407 vehicles are preferred for heavy goods where as EXCEL 4 vehicles are preferred for lights goods.

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AVERAGE LOAD CARRIED AND NUMBER OF DAYS

Fig .05

9.0 8.0 7.0 6.0 5.5 4.9 4.7 3.4 3.0 1.8 1.2 7.8 7.0 5.4 4.1 7.3

% of Pe opl e

5.0 4.0 3.0 2.0 1.0 0.0 1 - 2 ton

.
2 - 2.5 2.6 - 3 3.1-3.5

1.2

1.0 0.2

0.9 0.6 4.6-5

3.6-4

4.1-4.5

>5

Idle

TATA 407

EXCEL 4

COMPARISON OF AVERAGE KMS/DAY BY BOTH THE VEHICLES

35 30 25 20 15 10 10 11 9 9 7 4 2 8 22 29 25 22 20 22

Mil ea ge

5 0 <100 101-150 151-200 201-250 251-300

301-350

351-400

TATA 407%

EXCEL 4%

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Mileage

Excel 4 Vs Tata 407 (Mileage vs Avg Kms)

12 10 8 6 <100 101-150 151-200 201-250 251-300 301-350 351-400 Tata 407 Excel 4

kms

Methodology:The responses given for kms run during the entire month were averaged according to weights (days operative) and converted into average kms in a day. These responses were further studied for the mileages customers got during their operative days and converted into mileage/day. Conclusion:- From the above chart excel clearly emerges as the leader in mileage

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KEY PURCHASING PARAMETERS.

PURCHASING PARAMETERS FOR ALL THE VEHICLES.
700 600 500 400 300 200 100 0

ile ag e

up

ce

ze

Pr ic e

ci ty

se rv ic

ok s Lo

ilit

nc

fo

an

na

ck

la b

Fi na

pa

po

Br an

av

ry in g

in g

ai

llin

rs

fm

ar e

os to

Lo

ad

ca r

Sp

Fig.06
TOTAL Mileage Cost of maintenance Load carrying capacity Brand name Pick up Pulling power Spare availability Price Driving comfort Finance Dealers service Cargo hold size Looks Schemes Wt 584 385 324 322 209 197 197 157 103 102 54 34 21 18

ar go

Pu

riv

ea

le

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en

ca

ai

co

Pi

nt

ho

ld

si

es

er

rt

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PURCHASING PARAMETERS FOR TATA 407.

400 350 300 250 200 150 100 50 0

ile ag e

up

ce

ze

Pr ic e

ci ty

se rv ic

ok s Lo

ilit

nc

fo

an

na

ck

la b

Fi na

pa

po

Br an

av

ry in g

in g

ai

llin

ar go

fm

ar e

Pu

riv

os to

Lo

ad

ca r

Sp

Fig.06 (a)
TATA 407 Mileage Brand name Cost of maintenance Load carrying capacity Pulling power Pick up Spare availability Price Finance Driving comfort Cargo hold size Dealers service Looks Schemes Wt 376 294 255 242 147 136 120 83 82 67 14 14 12 6

ea

le

rs

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en

ca

ai

co

Pi

nt

ho

ld

si

es

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PURCHASING PARAMETERS FOR EXCEL 4.

250 200 150 100 50 0

M i le of ag m Lo e ai ad nt en ca an rr ce yi ng ca pa Sp ci ar ty e av ai la bi li t y Pi ck up

Fi na nc e Sc he m es

na m e

se rv ic e

fo rt

si ze

po w

co m

ea le rs

Br an d

ng

Pu l li

in g

os t

Fig.06 (b)
EXCEL 4 Mileage Cost of maintenance Load carrying capacity Spare availability Pick up Price Pulling power Dealers service Brand name Driving comfort Cargo hold size Finance Schemes Looks Wt 213 130 82 77 76 74 54 40 27 27 20 20 12 9

Conclusion:Brand name is not an important Parameter for an Excel 4 customer. So if other company is providing them with a better product, they will switch to other company.

ar go

riv

ho ld

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Existing Level Of satisfaction

CARGO HOLD SIZE

5.0
WARRANTY CLAIM

4.0 3.0 2.0

PICK UP

FINANCE

1.0 0.0

PULLING POWER

SPARES AVAILABILITY

COST OF MAINT.

DEALER SERVICE
EXCEL 4

DRIVING COMFORT
TATA 407

1.Dissatisfied

2.Not satisfied

3.Satisfied

4. Highly satisfied

5.Delighted Fig.07

DIFFERENCE Warranty claim settlement Finance Spares availability Cost of Maintenance

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Have you considered any other vehicle while purchasing this vehicle? Why didn t you purchase the vehicles mentioned above? The top three reasons due to which the customers considered TATA 407 but purchased EXCEL 4 is: Low price More mileage. Toppling of TATA 407 during rainy season. The top three reasons due to which the customers considered EXCEL 4 but purchased TATA 407 are: BRAND NAME. HIGH COST OF MAINTENANCE OF EXCEL 4. OVER LOAD CAPACITY OF TATA 407 IS MORE.

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AVERAGE AGGREGATE LIFE FOR THE SPARE PARTS.

Difference between the actual and the expected life
80000 70000 60000 50000 40000 30000 20000 10000 0

Clutch plate Brake Liners

TATA 407

Tyre

Fig.08 (a)
80000 70000 60000 50000 40000 30000 20000 10000 0 Clutch plate Brake Liners Tyre EXCEL 4

Fig.08 (b)
Clutch plate Actual TATA 407 EXCEL 4 71786 55000 Expected 77317 77791 Brake Liners Actual 62094 56538 Expected 64210 62917 Actual 58132 43448 Tyre Expected 51103 51250

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Where do you service your vehicle during the warranty period? Where do you service your vehicle after warranty? Vehicle service before and after warranty % of c u s t o m e r s
1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Dealer Before w arranty Road side mechanic Ow n w orkshop Dealer After w arranty Road side mechanic Ow n w orkshop

Fig.09

TATA EXCEL 4

Before Warranty Service Dealer Roadside Own Mechanic Workshop

After Warranty Roadside Own Mechanic Workshop 4% 78%

Dealer 15%

96% TATA 407 EXCEL 4

3%

1%

98%

2%

0%

36%

60%

2%

**NOTE: EXCEL 4 customers go to the dealers even after the warranty, because of non-availability of local mechanics and spare parts.

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Why do you service your vehicle at the road side mechanics.

TATA 407
.Quick delievery 31% keeps both original and duplecate parts. 4%

Credit facility 3% .His labour charges are less. 28% He is more reliable. 22%

.Convinient to go to him. 12%

Fig.10 keeps both .His labour He is more .Convinient original and charges are reliable. to go to him. duplecate less. parts. 62 48 26 9

.Quick Credit facility delievery 71 6

EXCEL 4
Quick delievery 31%

Credit facility 3% His labour charges are less. 29%

keeps both original and duplecate parts. 2% Convinient to go to him. 13%

He is more reliable. 22%

Fig.10 (a) keeps both His labour He is more Convinient to original and charges are reliable. go to him. duplecate less. parts. 25 20 12 2

Quick delievery 27

Credit facility 3

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The top three reasons for preferring Roadside Mechanics are 1.Quick delivery. 2.Less labour charges. 3.More reliable.

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WHERE DO YOU BUY YOUR VEHICLES SPARE PARTS.

Fig.11 (a)
TATA 407 Dealer 40% Local m arket 56% Authoris ed spare distributo r 6% EXCEL 4 Local m arket 11%

Fig.11 (b)

Authorised spare distributor 4%

Dealer 83%

Dealer TATA-407 EXCEL-4 39 39

.Authorized spare Local market distributor 4 54 3 5

Observation:It can be observed that most of TATA 407 customers buy the spare parts from the local market where as the EXCEL 4 customers purchase the spare parts mostly from the dealers, because they are rarely available in the local market.

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AVAILABILITY OF EXCEL-4 SPARE PARTS AT THE DEALERS.

Not available 0% Easily available 2%

Availble 28%

Rarely available 70%

Fig.12 Easily available 1 Available 15 Rarely available 38 Not available 0

Observation:It is clearly visible from the pie chart that 70% of the people say that the spare parts for EXCEL 4 is rarely available. Conclusion:There is an immediate need to make sure that the spare parts are available at all dealers.

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WHERE DID HE GET INFORMATION ABOUT THIS VEHICLE.

TATA 407 It can be observed that the visibility (i.e. seen on road) and the word of mouth Publicity gives information about the Product to the customers, which results in purchase by the customers.

TATA 407
other( ow n exp) 9% Dealer 10% 0% Hoarding 1% WOM 29%

Seen on road 51%

Fig.13 (a) Dealer 12 Hoarding 1 WOM 34 Seen on Other(experience) road 58 11

EXCEL 4 It can be observed that the dealers provide the Information to the customers and it is the word of mouth publicity from the existing customers which result in the purchase of the product.

EXCEL 4
Seen on road 9%

other 6%

Newspaper 4%

WOM 32%

Dealer 49%

Fig.13 (b) Newspaper 2 Dealer 26 WOM 17 Seen on road 5 Other 3

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CONSULTED BEFORE PURCHASING THE VEHICLE.

Dealer 8% Broker 1%

ow n exp 16%

For TATA 407

For Excel 4
ow n exp 6% Friend 32%

Mechanic 21%

Friend 52% Relative 2%

Dealer 54%

Mechanic 6% Broker 2%

Fig.14 (a) TATA 407 Friend 61 EXCEL 4 Friend 16 Relative Mechanic 3 Broker 1 Dealer 27 Own exp 3 Relative Mechanic 2 24 Broker 1 Dealer 9 Own exp 18

Fig.14 (b)

Observation: It can be observed that 407 customers consulted with friends and mechanics before purchasing whereas in case of EXCEL 4, customers consulted the dealers and friends mostly.

Conclusion: Vehicles visibility on the road plays an important role in the customers consideration set when he goes for purchasing a vehicle. Our vehicles are selling due to push strategy only. There is a need to generate a pull for the customer from FRIENDS & MECHANICS.

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WHY THERE IS A DIFFERENCE? Finance The Tie up s need to be such that the customer gets a finance up to 90%
TATA 407
Others State banks 10% 10%

State banks 15%

Others 11%

EXCEL 4

Cooperativ e 19%

NBFC 55%

Cooperative 29%

NBFC 51%

Fig.15(a)

Fig.15(b) FOR EXCEL 4

FOR TATA 407 TATA FINANCE MAHINDRA SHREERAM FINANCE CHOLAMANDALAM SUNDARAM FINANCE LOCAL FINANCE 16 2 1 3 1 23 CHOLAMANDALAM MAHINDRA SHAKTI FINANCE LOCAL FINANCE 3 6 1 11

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PERCEPTION OVERALL

Load carrying capacity

5

Cost of maintenance

4 3 2 1

Cargo hold size

Spare availability

Mileage

Dealers service

Power

Driving comfort

Finance

Brand name Price

Looks

Fig.16 Rated by TATA Customers

comparasion bar chart

Load carrying capacity 5.0 Cost of maintenance 4.0 3.0 2.0 1.0 Dealers service 0.0 Power Cargo hold size

Spare availability

Mileage

TATA-407 EXCEL-4

Driving comfort

Finance

Brand name Price

Looks

Fig.16 (a)

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Rated by Excel Customers

Load carrying capacity 5 Cost of maintenance 4 Spare availability 3 2 1 Dealers service 0 Pow er Mileage Cargo hold size

Driving comfort

Finance

Brand name Price

Looks

Fig.16 (b)

TATA 407 EXCEL 4

It can be observed that TATA 407 customer's perception is that EXCEL 4 gives better Mileage than TATA 407 but EXCEL 4 customer s think there is not much difference in Mileage of both the vehicles. It can also be observed that EXCEL 4 customers thinks that TATA 407 dealers provide good service as compared to EXCEL 4 s but TATA 407 Customer s think there is not much difference in dealers service for both the vehicles.

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FINDINGS
EXCEL- 4 VEHICLE APPLICATION Excel 4 vehicles are best suited for the applications, which include the following A . High speed B . Low cost. C . Low tonnage. D . Frequent trips. (driver can travel for 300 kms and feel comfortable and exhaustion is very less. )

FREQUENT PROBLEMS IN EXCEL - 4 : 1. Differential Noise at low speed and top gear. 2. Poor propeller shaft joint. (Star joint)- it has a support of only 2 screws, which is not sufficient. 3. Brake paddle does not returns to its original position once applied. 4. Lowlife of clutch plate (as identified in the survey). 5. Accessibility of fuel feed pump is very inconvenient. 6. Difficulty in adjustment of timing chain. 7. Costly spare parts. 8. Winding glasses difficult to operate (jamming at times). 9. Excessive heating of the cabin especially near the clutch and accelerator paddle assembly due to the exhaust gas silencer pipe. REPEAT PURCHASE:Most of the EXCEL 4 customers are dissatisfied with the performance of the vehicle. This causes the decrease in repeat purchase . During the survey it was observed that the TATA 407 customers are satisfied with the performance of the vehicle and this results in the repeat purchase.

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OVERLOADING: Overloading capacity of TATA 407 is higher than EXCEL 4. It can be observed from Q-7 that TATA 407 vehicles are used much for carrying more than 5 tons of load. The performance of EXCEL 4 is effected mainly in cases where overloading is regular.

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COMMENTS
Transport manager (gold winner Oil Company) 1) If the vehicle is loaded, the brakes are not so effective. 2) Diesel pump replaced six times. 3) The company is having its own workshop for the repair and maintenance of each and every vehicle. But even the mechanics of the workshop don t touch Excel 4.They send these to dealers only. They comment that these vehicles spare parts are costly and difficult to handle 4) Low average of only 6 kmpl when overloaded. 5) Every time they take vehicle to the dealer, it cost them a minimum of Rs.15000. 6) Brand name is not so important, it is the performance the vehicle, which counts. Driver of Mr. Deshmane. (Mumbai) new vehicle. Ye gadi chalane main itni smooth hai ki, ye chalane ke baad TATA 407 chalane ka man nahi karta.

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CUSTOMERS COMPLAINTS ABOUT EXCEL 4

Mr. I. Soundrapandian. (Madurai) 1) He has 10 excel- 4 vehicles and each one is having nozzle tip problem (electronic pump) In 2 years he has changed 100 nozzles. 2) Nozzle tip burst at 70-80 km/ph. The problem is frequent with third cylinder. 3) The braking system is poor due to the small size booster. He suggests big boosters will be more effective. Mr. Ramesh. (Chennai) 1) Low resale value. (Sold the vehicle in 2001just for Rs,125000 2) Due to non- availability of spares parts and dealers negligence, he kept his vehicle in the tempo). L. Gayendram. 1) Brake jam even when the break is released. 2) Low resale value. 3) He comments that the brand name is spoiled due the non- availability of spare parts. Professional couriers (Chennai) 1) Very low resale value. He was having 15 excel 4 vehicles. He sold 14 excel-4 vehicles @ 150000/ vehicles. 2) Braking problem due to dynamo failure. 3) Chain timing difficult to adjust. Workshop for nearly one year. (Dealers name Vinayaka

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S. Suresh (Chennai) 1) High cost of spare parts. 2) Propeller shaft joint changed 10 times. 3) He comments the vehicle (excel-4) is competent to TATA 407, but(A) Availability of spares. (B) Cost of spares. Puts the vehicle on the back foot. The availability & cost of spares affects the cost of maintenance. 4) He suggests that the size of the steering should be little smaller, similar to TATA 407. 5) Brake system should be improved. 6) Problem will lift pump. (Air releasing pump) 7) The vehicle is having good pick-up. Shree Iaappa travels and transport. (Chennai) a) Lift pump problem. b) Brake system is faulty1) Frequent brake jams. 2) Wheel cylinders (front) jam. c) Some engineers came to him in 2003 noted down all the faults, but till now no actions has been taken. d) Difficult to change timing chain. e) There is wobbling in the steering if speed exceeds 60 km/h. f) Cost of spares. Timing chain of Tata-407 cost around Rs 1200, whereas the cost of Excel-4 s timing chain is Rs 4500.

Mr. Ratankar (Mumbai). Kanch band karne ke liye roz do aadmi lagte hain. a) Engine parts are not easily accessible when hot.

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CONCLUSION

We are better off in carrying consumer durables and the light goods (Covered under the others category) Like: House hold, garments, Bakery Products. Hence we can conclude that TATA 407 vehicles are preferred for heavy goods where as EXCEL 4 vehicles are preferred for lights goods. From the above chart excel clearly emerges as the leader in mileage Brand name is not an important Parameter for an Excel 4 customer. So if other company is providing them with a better product, they will switch to other company. HIGH COST OF MAINTENANCE OF EXCEL 4. OVER LOAD CAPACITY OF TATA 407 IS MORE. It can be observed that most of TATA 407 customers buy the spare parts from the local market where as the EXCEL 4 customers purchase the spare parts mostly from the dealers, because they are rarely available in the local market. There is an immediate need to make sure that the spare parts are available at all dealers. Vehicles visibility on the road plays an important role in the customers consideration set when he goes for purchasing a vehicle. Our vehicles are selling due to push strategy only. There is a need to generate a pull for the customer from FRIENDS & MECHANICS.

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RECOMMENDATIONS
It can be observed from fig.6, BRAND NAME is second most important purchasing parameter, so it is very important for the company to improve its brand image. Following things can be done to improve the brand name of the company at the corporate and the dealers level: I. SATISFYING EXISTING CUSTOMER II. INCREASING THE NETWORK III.CONVINCING THE LOCAL TEMPO STAND UNION LEADERS IV.ENSURING SPARE PARTS AVAILABILITY V.CUSTOMER PULL PROMOTIONAL SCHEMES

SATISFYING EXISTING CUSTOMER

SERVICE REMINDERS: - Dealers should call back the customers to remind them regarding the date of servicing. CASE: CUSTOMER: -Mr. PANDEY (owns EXCEL 4, TATA 407, EICHER, MAHINDRA PICK-UP). Mr. Pandey was very much delighted by the service reminders provided by the MAHINDRA (PU) DEALERS. He complained that such a facility is never provided by Force motors .

INCREASING THE NETWORK I.SERVICING: a. Increasing the number of service stations across the country. E.g. MARUTI UDYOG LIMITED Maruti udyog limited has their service stations in large number in each and every part of the country; this results in convenience and satisfaction of the customer

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b. Arranging service camps for awareness and training of the local mechanics. Eg. In Mumbai, EICHER arranged service camps for local mechanics, which resulted in increased trained local mechanics and sales too.

Eg. When HERO HONDA was launched, no mechanics recommended this vehicle, as they were unable to repair it. To solve this problem HERO HONDA organized service camps for local mechanics, which resulted in massive sale of the vehicle.

CUSTOMER PULL PROMOTIONAL SCHEMES

Company should initiate counseling of the dealers to identify the prospective buyers in the market. II Tempo Stand Demos:

To give the feel of the vehicle, dealer should take the vehicle to the tempo stands and provide test rides to the operators. They should be allowed to carry the load for a short trip. III Awareness campaigns: Product and Promotional scheme awareness campaigns should be on frequent basis.

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LIMITATIONS
The main objective our project was to make a comparative study about the different load carrying vehicles in the market. So that I can get right information regarding each segment to find which is the best market owner.

The limitations were: Difficulty in gathering information about each segment. Language Barriers. The data collected represents the whole population. Ignorance by the customers and not proving the relevant information.

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ANNEXURE
QUESTIONNAIRE FOR LCV LOAD CARRIER

1) Which vehicles you have please specify their details?

2) Which was your previous LCV?

3) Where do you operate your vehicle and percentage of operation there? MODEL YEAR OF PURCHASE NO OF KMS RUN REGN NO

Inter city Percentage

Intra city

Inter state

4) Area of operation (about 80% of the time)? a) Rural b) Sub-urban c) Urban 5) Customer profile? a) Tempo stand operator b) Fleet owner c) On company contract

d) Farmer e) Manufacturer f) Other

6) What type of load you carry in the vehicle? a) Consumer durable e) Grocery b) Agriculture products f) Hardware c) Sand g) Stationary d) Parcels h) FMCG 7) Average load carried (in tons) and number of days? Load No of days 1-2 2.1-2.5 2.6-3 3.1-3.5 3.6-4 4.1-4.5

I) others

4.5-5

>5

Idle

Total

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8) Average kms run in a day? Kms Run <100 101151150 200 No of days

201250

251300

301350

351400

Idle

Tota l

9) What were the purchasing parameters (rank them) ( 1- is most important and 16 is least important?( not for drivers) No Parameters Rank No Parameters 1) Load carrying capacity 9) Brand name 2) Cargo hold size 10) Driving comfort 3) Mileage 11) Dealer relationship and convenience 4) Pick-up 12) Schemes 5) Pulling power 13) Finance 6) Looks 14) Cost of maintenance 7) Price 15) Service back up 8) Spares availability 16) Other 10) What was the expected and actual performance of the vehicle on abovementioned parameters (rank according to your satisfaction level ( 1 to 5 below satisfaction and 6 to 10 above satisfaction))? Parameters\ in % Pick - up Pulling power Cost of maintenance Driving comfort Dealer relationship and convenience Spares availability Finance Warranty claim settlement Others Parameters Load carrying capacity (in tons) Mileage (kmpl)(in loaded cond) Expected Actual 1 2 3 4 5 6 7 8 9 10

Rank

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11) Have you considered any other vehicle while purchasing this vehicle? If yes which are they? a) c) e) b) d) f) 12) Why didn t you purchase the vehicles mentioned above? a) b) c) d) e)

13) What was the average aggregate life you expected and you are getting of the following? Parameters Clutch plate Brake liners Tyres Fuel filter Air filter Engine overhaul Water pulley belt Crank shaft Piston assembly Cam shaft Other Expected life (in kms) Actual life ( in kms) Cost (Rs)

14) Where do you service your vehicle during the warranty period? Dealer: Other:Road side mechanic: Own workshop: -

15) Where do you service your vehicle after warranty? Dealer: Road side mechanic: Own workshop: Other:-

16) Why do you service your vehicle at the location mentioned above? a) His labour charges are less. b) He is more reliable. c) Convenient to go to him. d) He keeps both original and duplicate parts.

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e) Quick delivery. f) He gives credit. g) other

17) Why don t you service your vehicle at dealer? (If answer to Q14 is other than dealer) a) His service charges are high. b) He is not reliable. c) Spares availability is not good. d) His location is not convenient. e) Delay in delivery. f) Original spares are costly. g) He doesn t gives spares on credit. h) Others (please specify)

18) Where do you buy your vehicles spare parts? a) Dealer b) Authorized spare parts distributor d) Other

c) Local market

19) How do you rate the spare parts availability for EXCEL-4 at the dealer? Easily available Not available Available Rarely available

20) What is your opinion about the pricing of the following spare parts? TATA- 407 Duplicate EXCEL- 4 Duplicate

Original a) Break liner b) Clutch plate c) Cylinder block d) Piston assembly e) Piston ring f) Cam shaft g) Oil filter h) Air filter i) Others

Original

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21) Where you got information about this vehicle? a) Newspaper d) T V h) Radio b) Magazine e) Hoarding I)WOM c) Dealer f)road j) Seen on

22) Whom you have consulted before buying the vehicle? a) Friend (driver) e) Other b) Relative c) Mechanic d) Broker

23) Was the vehicle bought on finance? If yes, from which institute? a) NBFC State banks d) others EMI :Down payment :Tenure: -

b) Cooperative

c)

24) Was there any promotional scheme at the time of purchase?(if yes please specify)

25) What is the operating cost of the vehicle per month? Driver per month: (approx.) Diesel cost per month: (approx) Mileage: kmpl

26) What is the maintenance cost of the vehicle per month? Routine maintenance: Rs. (

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27) How will you rank the following vehicles on the below mentioned parameters? (Rank out of 5) ( 1-Worst, 2- Poor, 3- Average, 4- Good, 5- Excellent) Parameters Load carrying capacity Cargo size Mileage Power Finance Looks Price Brand name Ride comfort Dealer relationship and convenience Spares availability Cost of maintenance others TATA 407 EXCEL-4 LOADKING

28) What extra features you want in a L.C.V ? a) b) c) d) e)

29) OWNERS NAME: ADDRESS: -

CONTACT:-

30) You are? a) Driver b) Owner of owner e) Driver cum owner f) other

c) Manager

d) Relative

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BIBLIOGRAPHY
www.forcemotors.com

Marketing Research--- Sangeeta Agrawal

Marketing Research --- G C Beri

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