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V.I.M
Project Report. 1
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)
V.I.M
Project Report. 2
V.I.M
Project Report. 3
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
V.I.M
Project Report. 4
CHAPTER NO. CHAPTER NAME I. EXECUTIVE SUMMARY
II. COMPANY PROFILE III. PRODUCT PROFILE IV. OBJECTIVE OF THE STUDY V. RESEARCH METHODOLOGY
VI. INTERPRETATION & ANALYSIS VII. FINDINGS
VIII. CONCLUSION IX. RECOMMENDATIONS X. LIMITATIONS
XI. BIBLIOGRAPHY XII. ANNEXURE
V.I.M
Project Report. 5
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.
V.I.M
Project Report. 6
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.
V.I.M
Project Report. 7
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, starting in 1950, in
Collaboration with Vidal & Sohn, Hamburg,
Germany the import and later progressive manufacture in India of the Tempo 3-
Wheeler.
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
V.I.M
Project Report. 8
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
V.I.M
Project Report. 9
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, the company
conceived a 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.
V.I.M
Project Report. 10
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 â 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
V.I.M
Project Report. 11
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.
V.I.M
Project Report. 12
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
V.I.M
Project Report. 13
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.
V.I.M
Project Report. 14
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.
V.I.M
Project Report. 15
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.
V.I.M
Project Report. 16
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
V.I.M
Project Report. 17
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.
V.I.M
Project Report. 18
ANALYSIS & INTERPRETATION
THE INFORMATION OF THE PREVIOUS AND THE VEHICLE OWNED
PRESENTLY BY THE RESPONDENTS.
Previous vehicles
CURRENT VEHICLE TATA 407 CURRENT VEHICLE EXCEL 4
ANALYSIS OF PREVIOUS VEHICLE OWNED.
2 MAHINDRA
1
EICHER
4 OTHERS
3
TATA -HCV
2
SWARAJ
20
METADOR
25
TATA 407
3 EXCEL
32 NONE
Total
92
1 OTHERS
20 METADOR
7 TATA 407
1 ASHOK LEYLAND
2 TATA- HCV
1 TRAVELLER
15 NONE
Total 47
EXCEL
None34%
Metador45%
Switch16%
HCV5%
Repeat0%
None Metador Switch HCV Repeat
V.I.M
Project Report. 19
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.
407
None38%
Metador24%Switch
4%
HCV4%
Repeat30%
None Metador Switch HCV Repeat
V.I.M
Project Report. 20
AREA OF OPERATION
(Total Sample size 139)
Fig.01
Area of Operation Percentage Intercity 31 Intracity 61 Interstate 8
TATA (Sample size of 92 )
Fig.01 (a)
Area of Operation Percentage Intercity 30 Intracity 59 Interstate 11
operational area
interstate8%
intercity31%
Intracity61%
intercity Intracity interstate
operational area
interste11%
intercity 30%
Intracity59%
intercity Intracity interstate
V.I.M
Project Report. 21
EXCEL (out of a sample size of 47)
Fig.02 (b)
Area of Operation Percentage Intercity 31 Intracity 67 Interstate 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.
operational area
Intracity66%
intercity31%interstate
3%
intercity Intracity interstate
V.I.M
Project Report. 22
As per Rural, Urban and Sub-Urban
(Total Sample size 139)
Fig.02
Area of Operation Precentage Rural 5 Sub-Urban 41 Urban 54
TATA (Sample size of 92 )
Fig.02 (a)
Area of Operation Percentage Rural 6 Sub-Urban 41 Urban 53
AREA OF OPERATIONS FOR ALL THE VEHICLES.
rural5%
Sub-Urban41%
Urban54%
AREA OF OPERATION FOR TATA 407
rural6%
Sub-Urban41%
Urban53%
V.I.M
Project Report. 23
AREA OF OPERATION FOR EXCEL 4
Sub-Urban41%
rural1%
Urban58%
EXCEL (out of a sample size of 47)
Fig.02 (b)
Area of Operation Percentage Rural 1 Sub-Urban 41 Urban 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.
V.I.M
Project Report. 24
CUSTOMER PROFILE FOR ALL VEHICLES
fleet owner36%
Tempo stand operator
35%
Manufacturer8%Farmer
1%
On company contract
15%
Others5%
CUSTOMER PROFILE
Fig.03
Work Profile Percentage Tempo Stand Operator 35
Fleet Owner 36 On Company Contract 15
Farmer 1 Manufacturer 8
Others 5
V.I.M
Project Report. 25
Fig.03 (a)
Work Profile Percentage Tempo Stand Operator 22
Fleet Owner 41 On Company Contract 23
Farmer 0 Manufacturer 10
Others 4
CUSTOMER PROFILE FOR EXCEL 4
Tempo stand operator
22%
fleet owner41%
On company contract
23%
Farmer0%
Manufacturer10%
Others4%
V.I.M
Project Report. 26
CUSTOMER PROFILE FOR TATA 407
Others5%
Tempo stand operator
43%
On company contract
11%
Farmer2%
Manufacturer6%
fleet owner33%
Fig.03 (b)
Work Profile Percentage Tempo Stand Operator 43
Fleet Owner 33 On Company Contract 11
Farmer 2 Manufacturer 6
Others 5
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.
V.I.M
Project Report. 27
TYPE OF LOAD CARRIED IN THE VEHICLE
Fig.04
Type of Load Percentage
Consumer Durable 12
Agriculture Product 12
Sand 3
Parcels 13
Grocery 10
Hardware 19
Stationary 12
FMCG 6
Others 13
TYPE OF LOAD CARRIED IN ALL THE VEHICLES
Others13%
Consumer durable
12%Agricultural
product12%
Sand3%
Grocery10%
Parcels13%
Hardware19%
Stationary12%
FMCG6%
V.I.M
Project Report. 28
TATA (Sample size of 92)
Fig.04 (a)
SEGMENT Consumer durable
Agricultural product Sand Parcels
Grocery
Hardware
Stationary
FMCG Others
NO OF RESP 31 37 10 36 30 55 33 19 29
EXCEL (sample size of 47)
Fig.04 (b)
SEGMENT
Consumer durable
Agricultural product Sand Parcels
Grocery
Hardware
Stationary
FMCG Others
NO OF RESP 15 10 3 13 9 18 13 5 21
19
29 30 31 33 36 37
55
10
0
10
20
30
40
50
60
Sand FMCG Others Grocery Consumerdurable
Stationary Parcels Agriculturalproduct
Hardware
35
9 1013 13
1518
21
0
5
10
15
20
25
Sand FMCG Grocery Agricultural
product
Parcels Stationary Consumer
durable
Hardware Others(light
goods)
V.I.M
Project Report. 29
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.
V.I.M
Project Report. 30
AVERAGE LOAD CARRIED AND NUMBER OF DAYS
Fig.05
% of People
Mileage
5.5
3.4
1.0 1.2
5.4
7.8
4.9
7.3
1.8
0.9
4.1
0.61.2
7.0
4.7
0.2
3.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
1 - 2 ton 2 - 2.5 2.6 - 3 3.1-3.5 3.6-4 4.1-4.5 4.6-5 >5 Idle
TATA 407 EXCEL 4
.
COMPARISON OF AVERAGE KMS/DAY BY BOTH THE VEHICLES
22
25
20
10 11
4
8
29
22 22
9 97
2
0
5
10
15
20
25
30
35
<100 101-150 151-200 201-250 251-300 301-350 351-400
TATA 407% EXCEL 4%
V.I.M
Project Report. 31
Excel 4 Vs Tata 407 (Mileage vs Avg Kms)
68
1012
<100 101-150 151-200 201-250 251-300 301-350 351-400
Tata 407 Excel 4
Mileage
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
V.I.M
Project Report. 32
KEY PURCHASING PARAMETERS.
PURCHASING PARAMETERS FOR ALL THE VEHICLES.
Fig.06
TOTAL Wt Mileage 584 Cost of maintenance 385 Load carrying capacity 324 Brand name 322 Pick up 209 Pulling power 197 Spare availability 197 Price 157 Driving comfort 103 Finance 102 Dealers service 54 Cargo hold size 34 Looks 21 Schemes 18
0
100
200
300
400
500
600
700
Mile
age
Cost o
f main
tena
nce
Load
carry
ing ca
pacit
y
Brand
nam
e
Pick u
p
Pulling
pow
er
Spare
ava
ilabil
ityPric
e
Driving
com
fort
Financ
e
Dealer
s ser
vice
Cargo
hold
size
Look
s
Schem
es
V.I.M
Project Report. 33
050
100150200250300350400
Mile
age
Brand
nam
e
Cost o
f main
tena
nce
Load
carry
ing ca
pacit
y
Pulling
pow
er
Pick u
p
Spare
ava
ilabil
ityPric
e
Financ
e
Driving
com
fort
Cargo
hold
size
Dealer
s ser
vice
Look
s
Schem
es
PURCHASING PARAMETERS FOR TATA 407.
Fig.06 (a)
TATA 407 Wt Mileage 376
Brand name 294
Cost of maintenance 255
Load carrying capacity 242
Pulling power 147
Pick up 136
Spare availability 120
Price 83
Finance 82
Driving comfort 67
Cargo hold size 14
Dealers service 14
Looks 12
Schemes 6
V.I.M
Project Report. 34
PURCHASING PARAMETERS FOR EXCEL 4.
Fig.06 (b)
EXCEL 4 Wt Mileage 213 Cost of maintenance 130 Load carrying capacity 82 Spare availability 77 Pick up 76 Price 74 Pulling power 54 Dealers service 40 Brand name 27 Driving comfort 27 Cargo hold size 20 Finance 20 Schemes 12 Looks 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.
0
50
100
150
200
250
Mile
age
Cost o
f mai
ntena
nce
Load
carry
ing ca
pacity
Spare
ava
ilabi
lity
Pick u
pPric
e
Pulling
power
Dealer
s serv
ice
Brand
nam
e
Driving
com
fort
Cargo
hold
size
Finance
Schem
es
Look
s
V.I.M
Project Report. 35
0.0
1.0
2.0
3.0
4.0
5.0CARGO HOLD SIZE
PICK UP
PULLING POWER
COST OF MAINT.
DRIVING COMFORTDEALER SERVICE
SPARES AVAILABILITY
FINANCE
WARRANTY CLAIM
EXCEL 4 TATA 407
Existing Level Of satisfaction
1.Dissatisfied 2.Not satisfied 3.Satisfied 4. Highly satisfied
5.Delighted
Fig.07
DIFFERENCE
Warranty claim settlement
Finance
Spares availability
Cost of Maintenance
V.I.M
Project Report. 36
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.
V.I.M
Project Report. 37
AVERAGE AGGREGATE LIFE FOR THE SPARE PARTS.
Difference between the actual and the expected life
Fig.08 (a)
Fig.08 (b)
0
10000
20000
30000
40000
50000
60000
70000
80000
Clutch plate Brake Liners TyreTATA 407
01000020000300004000050000600007000080000
Clutch plate Brake Liners Tyre EXCEL 4
51250 43448 62917 56538 77791 55000 EXCEL 4
51103 58132 64210 62094 77317 71786 TATA 407
Expected Actual Expected Actual Expected Actual
Tyre Brake Liners Clutch plate
V.I.M
Project Report. 38
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
Fig.09
Before Warranty
After Warranty
Service Dealer Roadside
Mechanic
Own Workshop
Dealer Roadside Mechanic
Own Workshop
TATA 407
96% 3% 1%
15% 78%
4%
EXCEL 4 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.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
DealerBefore w arranty
Road sidemechanic
Ow n w orkshop DealerAfter w arranty
Road sidemechanic
Ow n w orkshop
TATA EXCEL 4
V.I.M
Project Report. 39
Why do you service your vehicle at the
road side mechanics.
Fig.10
.His labour charges are
less.
He is more reliable.
.Convinient to go to him.
keeps both original and duplecate
parts.
.Quick delievery Credit facility
62 48 26 9 71 6
Fig.10 (a)
His labour charges are
less.
He is more reliable.
Convinient to go to him.
keeps both original and duplecate
parts.
Quick delievery
Credit facility
25 20 12 2 27 3
TATA 407
.Convinient to go to him.12%
Credit facility3%.Quick delievery
31%
keeps both original and duplecate parts.
4%
.His labour charges are less.
28%
He is more reliable.22%
EXCEL 4
He is more reliable.
22%
His labour charges are less.
29%
Credit facility3%
Quick delievery31%
keeps both original and duplecate
parts.2% Convinient to go to
him.13%
V.I.M
Project Report. 40
The top three reasons for preferring Roadside Mechanics are
1.Quick delivery.
2.Less labour charges.
3.More reliable.
V.I.M
Project Report. 41
WHERE DO YOU BUY YOUR VEHICLES SPARE PARTS.
Fig.11 (a) Fig.11 (b)
Dealer .Authorized
spare distributor
Local market
TATA-407 39 4 54 EXCEL-4 39 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.
TATA 407
Local
market56%
Authorised spare
distributor 4%
Dealer 40%
EXCEL 4
Local market
11%
Authorised spare distributo
r6%
Dealer83%
V.I.M
Project Report. 42
AVAILABILITY OF EXCEL-4 SPARE PARTS AT THE DEALERS.
Fig.12
Easily available
Available Rarely available
Not available 1 15 38 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.
Easily available
2% Availble28%
Rarely available
70%
Not available
0%
V.I.M
Project Report. 43
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.
Fig.13 (a)
Dealer Hoarding
WOM Seen on road Other(experience)
12 1 34 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.
Fig.13 (b)
Newspaper Dealer WOM Seen on road Other
2 26 17 5 3
TATA 407
0%other( ow n exp)
9%Hoarding
1%
Dealer10%
WOM29%Seen on road
51%
EXCEL 4Seen on road
9%
other6% Newspaper
4%
Dealer49%
WOM32%
V.I.M
Project Report. 44
CONSULTED BEFORE PURCHASING THE
VEHICLE.
Fig.14 (a) Fig.14 (b)
TATA 407
Friend Relative
Mechanic
Broker Dealer Own exp
61 2 24 1 9 18
EXCEL 4
Friend Relative
Mechanic
Broker Dealer Own exp
16 3 1 27 3
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.
For TATA 407
Relative2%
Friend52%
Dealer8%
Mechanic21%
Broker1%
ow n exp16%
For Excel 4Friend32%
Mechanic6%
Broker2%
Dealer54%
ow n exp6%
V.I.M
Project Report. 45
WHY THERE IS A DIFFERENCE?
Finance
The Tie
up s need to be such that the customer gets a finance up to 90%
Fig.15(a) Fig.15(b)
TATA 407
NBFC55%
Others11%
Cooperative
19%
State banks15%
EXCEL 4
NBFC51%
Others10%State banks
10%
Cooperative29%
23
LOCAL FINANCE
1
SUNDARAM FINANCE
3 CHOLAMANDALAM
1 SHREERAM FINANCE
2 MAHINDRA
16 TATA FINANCE
FOR TATA 407
11
LOCAL FINANCE
1 SHAKTI FINANCE
6 MAHINDRA
3 CHOLAMANDALAM
FOR EXCEL 4
V.I.M
Project Report. 46
comparasion bar chart
0.0
1.0
2.0
3.0
4.0
5.0Load carrying capacity
Cargo hold size
Mileage
Power
Finance
Looks
Price
Brand name
Driving comfort
Dealers service
Spare availability
Cost of maintenance
TATA-407
EXCEL-4
PERCEPTION OVERALL
Fig.16
Rated by TATA Customers
Fig.16 (a)
0
1
2
3
4
5Load carrying capacity
Cargo hold size
Mileage
Power
Finance
Looks
Price
Brand name
Driving comfort
Dealers service
Spare availability
Cost of maintenance
V.I.M
Project Report. 47
Rated by Excel Customers
Fig.16 (b)
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.
0
1
2
3
4
5Load carrying capacity
Cargo hold size
Mileage
Pow er
Finance
Looks
Price
Brand name
Driving comfort
Dealers service
Spare availability
Cost of maintenance
TATA 407 EXCEL 4
V.I.M
Project Report. 48
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.
V.I.M
Project Report. 49
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.
V.I.M
Project Report. 50
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.
V.I.M
Project Report. 51
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 Workshop for nearly one year. (Dealers name Vinayaka
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.
V.I.M
Project Report. 52
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 faulty-
1) 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.
V.I.M
Project Report. 53
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.
V.I.M
Project Report. 54
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
V.I.M
Project Report. 55
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.
V.I.M
Project Report. 56
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.
V.I.M
Project Report. 57
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?
Inter city Intra city Inter state Percentage
4) Area of operation (about 80% of the time)? a) Rural b) Sub-urban c) Urban
5) Customer profile? a) Tempo stand operator d) Farmer b) Fleet owner e) Manufacturer c) On company contract f) Other
6) What type of load you carry in the vehicle? a) Consumer durable e) Grocery I) others b) Agriculture products f) Hardware c) Sand g) Stationary d) Parcels h) FMCG
7) Average load carried (in tons) and number of days?
Load 1-2 2.1-2.5 2.6-3 3.1-3.5 3.6-4 4.1-4.5 4.5-5 >5 Idle Total
No of days
MODEL YEAR OF PURCHASE NO OF KMS RUN
REGN NO
V.I.M
Project Report. 58
8) Average kms run in a day?
Kms Run <100 101-150
151-200
201-250
251-300
301-350
351-400
Idle Total
No of days
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 Rank 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 above-mentioned parameters (rank according to your satisfaction level ( 1 to 5 below satisfaction and 6 to 10 above satisfaction))?
Parameters\ in % 1
2
3
4
5
6
7
8
9
10
Pick - up Pulling power Cost of maintenance Driving comfort Dealer relationship and convenience Spares availability Finance Warranty claim settlement Others
Parameters Expected Actual Load carrying capacity (in tons) Mileage (kmpl)(in loaded cond)
V.I.M
Project Report. 59
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 Expected life (in kms) Actual life ( in kms) Cost (Rs) Clutch plate Brake liners Tyres Fuel filter Air filter Engine overhaul Water pulley belt Crank shaft Piston assembly Cam shaft Other
14) Where do you service your vehicle during the warranty period?
Dealer: - Road side mechanic: - Own workshop: - Other:-
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.
V.I.M
Project Report. 60
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 c) Local market d) Other
19) How do you rate the spare parts availability for EXCEL-4 at the dealer?
Easily available Available Rarely available Not available
20) What is your opinion about the pricing of the following spare parts?
TATA- 407 EXCEL- 4
Original Duplicate Original Duplicate
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
V.I.M
Project Report. 61
21) Where you got information about this vehicle?
a) Newspaper b) Magazine c) Dealer d) T V e) Hoarding f)road h) Radio I)WOM j) Seen on
22) Whom you have consulted before buying the vehicle?
a) Friend (driver) b) Relative c) Mechanic d) Broker e) Other
23) Was the vehicle bought on finance? If yes, from which institute? a) NBFC b) Cooperative c)
State banks d) others EMI :- Down payment :- Tenure: -
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. ( )
V.I.M
Project Report. 62
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 TATA 407 EXCEL-4 LOADKING Load carrying capacity Cargo size Mileage Power Finance Looks Price Brand name Ride comfort Dealer relationship and convenience Spares availability Cost of maintenance others
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 c) Manager d) Relative
of owner e) Driver cum owner f) other
V.I.M
Project Report. 63
BIBLIOGRAPHY
www.forcemotors.com
Marketing Research--- Sangeeta Agrawal
Marketing Research --- G C Beri
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