Research Methedology Essay

A Project Submitted to SVKM’s Narsee Monjee Institute of Management Studies (NMIMS) As a part of Research Methodology Project By Students of MBA ( Pharm. Tech) Fourth Year Under the Guidance of Ms. Grishma Kulkarni “A Project On TATA Nano And JLR” GROUP MEMBERS : YOGESH JAISWAL (26) RITIKA KAROOR (28) KANISHK KUMAR (36) VAIBHAV KUMAR (38) AKASH DEEP KUSHWAHA (39) PRATEEK MANSHARMANI (44) School of Pharmacy & Technology Management, SVKM’s Narsee Monjee Institute of Management Studies (NMIMS)V. L Mehta Road Vile Parle (W) Mumbai -400056 CONTENTS: 1. EXECUTIVE SUMMARY 2. INTRODUCTION 3.

RESEARCH METHODOLOGY 4. RESULTS AND DISCUSSION 5. CONCLUSION AND RECOMMENDATIONS 6. WEBLIOGRAPHY EXECUTIVE SUMMARY: The report talks about the Indian automobile giant TATA Motors in particular. We have tried to track the path of TATA Motor’s expansion of international business in the recent past, at present as well as its future plans. We have also discussed the impact of current financial meltdown on the recent international ventures of the company. The company is rapidly increasing its global footprint and is aiming to match the standards of international automobile manufacturers in next 3 to 5 years.

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This rise to the level of a world-class automotive manufacturer would involve a large quantifiable increase in revenues from outside India with a focus on certain foreign markets. Currently international business contributes 18. 4%to company’s revenues. Company is aiming to increase it by 200% in near future to reduce its dependence on one single economy and one single business cycle. This ambition of the company has led to numerous joint ventures and increased activity in countries like the U. K. , South Africa, South Korea, Thailand, Brazil and Spain, as well as the company is listing on the NYSE.

With the recent acquisition of Jaguar Land Rover (JLR) from the Ford Motor company in early2008, the company has entered into the world of high-end luxury brands. Customers of high-end luxury brands value image and exclusivity factors, while image and exclusivity conflict with the proposition of TML’s other recent venture, the inexpensive Nano. In this manner, the decision to compete in both the high-end luxury and low-end economy markets certainly creates a big and audacious task ahead for TML. If proven successful, this strategy would provide the company with high margin (JLR) as well as high volume (Nano) revenues.

These two revenue streams, if proven compatible, could mitigate each other’s risks. INTRODUCTION: BRIEF OF TATA MOTORS. Purpose of Tata group: ? ”Attain leadership through business excellence in the sectors we operate in, while upholding our values and integrity, to improve the quality of life of the communities we serve”. Vision of Tata Motors (PCBU – Passenger Cars Business Unit): ? To develop Tata into a world class Indian car brand for innovative and superior value vehicles. Mission of Tata Motors (PCBU): ? To be the most admired multi-national Indian car company producing vehicles that people love to buy.

To create an organization that people enjoy working for, doing business with and investing in. Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. They are, by and large, based in India and have significant international operations. The total revenue of Tata companies, taken together, was $70. 8 billion (around Rs. 325, 334 crore) in 2008-09, with 64. 7% of this coming from business outside India, and they employ around 357,000 people worldwide.

The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. Every Tata company or enterprise operates independently. Each of these companies has its own board of directors and shareholders, to whom it is answerable. There are 27 publicly listed Tata enterprises and they have a combined market capitalisation of some $60 billion, and a shareholder base of 3. 5 million. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata Communications.

In tandem with the increasing international footprint of Tata companies, the Tata brand is also gaining international recognition. Brand Finance, a UK-based consultancy firm, recently valued the Tata brand at $9. 92 billion and ranked it 51st among the world’s Top 100 brands. Business week magazine ranked Tata 13th among the ’25 Most Innovative Companies’ list and the Reputation Institute, USA, recently rated it 11th on its list of world’s most reputable companies. Founded by Jamshedji Tata in 1868, Tata‘s early years were inspired by the spirit of nationalism.

Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The Nano car is one example, as is the Eka supercomputer (developed by another Tata company), which in 2008 was ranked the world‘s fourth fastest. “One hundred years from now, I expect the Tatas to be much bigger than it is now. More importantly, I hope the group comes to be regarded as being the best in India — best in the manner in which we operate, best in the products we deliver and best in our value systems and ethics.

Having said that, I hope that a hundred years from now we will spread our wings far beyond India… ” — Ratan Tata. RESEARCH METHODOLOGY: Purpose of the Research The general purpose of this study is to determine whether the unique concept by TATA MOTORS of launching the Rs. 1 lakh car in the year 2008 was a success and also to study the consumer behavior in the Indian automobile industry towards the world’s cheapest car and the niche segment cars in India. The second aspect of the research would be to study the acquisition and takeover of Jaguar and Land Rover by TATA.

A careful review of those question areas led to the development of the following research objectives: * To determine whether the acquisition of JLR during its crisis was a profitable decision by TATA. * The affect of acquisition on JLR and its current market position. * To study the consumer behavior and the market potential towards world’s cheapest car – TATA Nano. * To assess the perception of potential buyers of the two extreme segments of Indian automobile industry. * To obtain consumer feedback and satisfaction after buying TATA cars.

Research Design The survey research method used was an applied research design. The research method was of exploratory type. The respondents were interviewed at their homes over a telephonic conversation or personally or during the time of purchase of the vehicle (at showrooms). The duration of interviews was between 15 to 20 minutes. The age group of the respondents was between 18 to 60 years. The potential buyers were provided with questionnaires through the means of emails and handouts designed by the group to assess the perception. Sample Design

A survey of approximately 50 potential buyers of TATA Nano & JLR along with 50 current owners of Nano and JLR was conducted throughout the country that contributed to the database for this exploratory research. Eligible respondents were adults over the age of 18. The respondents were properly assessed and only the potential buyers and the existing owners were taken into consideration. Data Gathering Maximum efforts were made to perform the personal interviews and descriptive research but due to the limits of the study we also communicated through telephonic conversations and e-mails.

Standard editing and coding procedures were utilized. Simple tabulations and cross tabulations were utilized to analyze the data. RESULT: The survey was divided into two groups: 1. TATA Nano owners and its prospective owners 2. TATA JLR owners and its prospective owners People falling under SEC A1 to A2 were targeted for JLR while people falling in SEC B1 to D were targeted for TATA Nano. Tata Nano Results: 1. Most of the respondents here felt that NANO is a family car and is the best suited car for city driving conditions. This is because of its small size and efficient engine.

Do you see TATA Nano as the best vehicle for city ride specifically in metros? | | 1. Yes| | 52| | 2. No| | 37| | | | | | | 2. Since,Nano is targeted at lower economic sector most respondents agree to the fact that they will be ready to buy Nano as compared to buying a motorcycle. Instead of purchasing a Bike, will you prefer to go for the NANO? | | 1. Yes| | 41| | 2. No| | 35| | 3. Can’t Say| | 12| | | | | | 3. The respondents also were in the view of the fact that Nano is a common man’s car. | | | Do you think NANO is people’s car| | 1. Yes| | 61| | 2. No| | 11| | . Can’t Say| | 18| | | 4. Tata Nano has emerged as the most popular car in its segment but people are not very willing to wait for its delivery for more than 1-2 months as other cars are available more readily. | | | How long can you wait for NANO? | | 1. 1-2 Months| | 40| 2. 2-4 Months| | 19| 3. 4-6 Months| | 9| 4. Can’t wait| | 22| | 5. All the buyers found Nano a value for money product. | | | Do you think TATA Nano is value for money? | | 1. Yes| | 73| 2. No| | 16| | 6. The main reason for buying Nano is its low price. Why will you buy Nano? | | 1. Low Price| | 79| . After sales service| | 5| 3. Attractive looks| | 9| 4. Comfort and convenience| | 10| .| | | | 7. But Nano failed in the delivery of its car as most the respondents interest dropped after it was announced that there will a delay of 6 months in delivery. Did the extended delivery date for 6 months reduce interest in TATA Nano? | | 1. Yes| | 56| 2. No| | 33| | 8. When the respondents were asked about their preference as in whether they will like to buy a brand new NANO or a second hand car,they were found to have a response equal in favour of both options.

Would you prefer a two year old Alto/Zen to a brand new TATA Nano at the same price? | | 1. Yes| | 49| 2. No| | 48| | 9. Although NANO has gained popularity largely due to its low cost and smart design but it is still lagging behind in its after sales service Are you satisfied with Nano’s service? | | 1. Yes, fully satisfied| | 23| 2. Average| | 48| 3. Less than average| | 14| 4. No, very disappointed| | 6| | TATA JLR Results: 1. The respondents were not very much affected by the acquisition of Jaguar Land Rover by TATA because they felt that the JLR as a brand is much more famous as compared to TATA JLR.

Did the acquisition by TATA affect your buying of Jaguar Land Rover models? | | 1. Yes| | 37| 2. No| | 58| | 2. The reputation of JLR can be cited by the fact as more number of people opted for buying JLR as compared to any model of Mercedes or BMW. Will you go for buying Jaguar Land Rover rather than equally competent Mercedes/BMW? | | 1. Yes| | 61| 2. No| | 35| .| 3. People find owning a JLR acts as a status symbol for its high cost, sheer power and its unique design. Do you think Jaguar Land Rover is a Status Symbol? | | 1. Yes| | 86| 2. No| | 10| | 4.

TATA in a bid to make JLR more adaptable to Indian conditions made some basic changes and people accepted those changes very well as it meant that JLR was more potent even on Indian road conditions. Do you think Jaguar Land Rover is designed and built according to India’s local weather and road conditions? | | 1. Yes| | 56| 2. No| | 40| | DISCUSSION: The new concept car introduced by TATA Motors in the form of TATA NANO has been accepted very well by the masses the major reason for this being it’s low cost and small but yet peppy design which makes it a perfect ride for any city.

But NANO still lacks in its basic power segment which makes it vulnerable for competition as people are more likely to buy a car with more power and hence they are willing to buy a more powerful second hand car at the same price as that of a new NANO. Since its launch was announced NANO saw a heavy rush of customers who had booked for NANO but since there production capacity was not ready for such an enormous amount the delivery date was delayed by as long as 6 months this led to many consumers cancelling their bookings.

People are also not very satisfied with TATA’s after sales service and with the recent news of some NANO’s catching fire coming into the scene safety has also become a major issue. JLR on the other hand has enjoyed its popularity and it was not largely affected by its acquisition by TATA. The only benefit that the Indian consumers got was that there was a slight decrease in the prices of JLR. In today’s market TATA has the highest priced cars and as well as the lowest priced car giving it a slight edge over its rival’s as it can target the elite class of the society as well as the common man.

The first Jaguar- Land rover showroom was open in 2009 in MUMBAI and soon people got to see the two beauties. The first Land rover to be launched in India was the FREELANDER 2 with a price tag of 33. 79 lakhs (ex-showroom price Mumbai). CONCLUSION & RECOMMENDATIONS: To increase the acceptance of NANO TATA should focus on its engine and increase its power. Also they should increase their production capacity which was earlier only 40,000 units from its Pantnagar plant. They have increased it to 3, 00,000 units from their newly inaugurated plant at Sanand plant in Gujarat and they are about to increase their capacity up to 5, 00,000 units.

The safety features have raised a new issue as some of NANO cars had caught fires hence this issue should be solved at the earliest as this can become a major reason from a drop in sales in the future. Tata has started working in this direction by calling engineers from its JLR division to look into this problem. As far as JLR is concerned the first thing TATA needs to do is to open more exclusive outlets and more service centres as earlier there were no service centres of JLR in India.

Also since the acquisition the cost of JLR cars has come down which has led to an increase in its sale of units but TATA should work forward in bringing down the cost further to have a higher increase in sales and thus increase its market share. As far as the marketing aspect is concerned JLR does not need any marketing for its brand value but the area where marketing is required is there servicing area TATA should specifically advertise all the service centres of JLR. Since JLR is a very expensive range it’s servicing is of prime concern.

For NANO a new advertising campaign depicting its improved safety and engine should be done. As such TATA has climbed on to second position in the car industry in India just behind the market leaders Maruti Suzuki but if they continue their current strategy they can very well close in the gap between themselves and the market leaders. If Tata continues similar acquisitions in the future in different countries and is able to transfer the brand name to the other products which are consistent with a single brand identity then it can become a global brand in the long run.

Many found it puzzling when India’s Tata, a company that specializes in economical cars and commercial vehicles, announced plans to purchase a struggling luxury brand like Jaguar, but it appears there could be more to Tata’s takeover of Ford’s premium brands then first reported. Tata’s founder Ratan Tata has previously expressed his love for Land Rover, calling it the “ride of the Rajas,” but as for Jaguar latest reports claim it may be spun off soon and may come up with new robust models.

Indian carmakers are keen to develop more off-road vehicles, especially larger and more premium designs. During the early phase of bidding for Jaguar and Land Rover, rival Indian carmaker Mahindra attempted to secure the rights for Land Rover by partnering but the deal went sour. But Tata had the same idea. Land Rover, the other half of the acquisition, is in good shape. According to sources close to the negotiations, the four-wheel-drive vehicle specialist made about $1 billion last year, while Jaguar lost about $250m.

Buoyed by successful new models, Land Rover sales are growing, reaching 226,395 last year, compared with 153,496 a decade ago. Jaguar is heading the other way, selling 60,485 last year, compared with 120,570 at the height of production in 2003. WEBLIOGRAPHY: 1. 2007 Annual Report, Ford Motor Company 2. 2007-08 Annual Report, Tata Motors 3. No Brand Confusion Expected From Jaguar, Land Rover Sale to Tata – www. dexigner. com/ graphic/news-g14149. html 4. Tata Motors official website. 5. Survey analysis: Google Docs

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