You are on page 1of 115

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS EXICUTIVE SUMMARY Tata Motors Limited

is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles. ABOUT THE TOPIC: 1. Statement of the problem. STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS IN MID-SIZE CAR SEGMENT AND ITS EFFECT ON CONSUMER DECESSION MAKING Product Line Management: Product line management is about controlling the definition and release planning for a product line. Market requirements, development capacities, strategic corporate decisions are all harmonized, and the product's chances on the market are evaluated in a business plan

Babasabpatilfreepptmba.com

Page 1

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS DIFFERENTATION STRATGIES EMPLOYED BY AUTOMAKER MIDSEGMENT CARS : In marketing, differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings.In Simple words Products are differentiated when the products of different companies are not perfect substitutes instead, "every company has a monopoly of its own product. The following factors that make impact on consumer decision making. 1.) Model 2.) Price 3.) Delivery period 4.) Vehical life 5.) Vehical power 6.) After sales service 7.) Fuel consumption 8.) safety 9.) Schemes and offer 2. Need for study: As the market for the automobile is having the huge accelerating growth in the Indian market, to check differentiation strategies applied by automakers, analyzing its impact on consumer decision making, to check in what areas and circumstances it may effect consumer decision in buying the vehicle. Study Objective. To study about the product line management To understand the differentiation strategies applied by automakers To understand the differentiation strategies impact on consumer decision Making.

Babasabpatilfreepptmba.com

Page 2

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

3. Proposed outcome or benefits of the study. After studying we come to know regarding the Present and future requirement in the product differentiation of mid-size car segment in the Indian market. Thus the features and options that customers look when buying the product which would fulfill requirement . Selection of data collection method 1. Survey: 2. Measurement Technique: 3. Method of analysis: 4. Sample Size: DATA COLLECTION METHOD:
Primary data: Primary data are the data that are collected to help solve a problem or taken

their

Personal Interview of customer Questionnaire Simple Percentage Method, tabulation, etc 100

advantage of an opportunity on which decision must be taken. The main method of collecting primary data is survey method. for example personal interview. Secondary data: Secondary data collected from distributors, company people, guideline book and Internet. BRIEF FINDINGS: Out of total sample taken 75 % respondents own the car and 25% of the respondents do not own the car. Out of total sample taken 66% respondents are interested to buy another car and nearly 9% of the respondents do not intended to purchase another car. Out of total sample taken of which 25% of the do not own the car and hence all the 25% people are interested to buy the car. Babasabpatilfreepptmba.com Page 3

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Among the car 8% of the people are influenced by Brand image of the car, 24% are influenced by vehicle power, 25% are influenced by safety features of the car, 34% are influenced by the price of vehicle and remaining 9% are of the people are concerned of fuel consumption of the vehicle.

Among the car buyers nearly 26% of the people are influenced by the Mechanics and 25% by friends, 17% by the schemes & offers, 16% by family and 16% by the advertisement.

Schemes & offers given by the company influence 57% of the people change the decisions and 43% are not influenced.

Offers & schemes influence 8% through 0% car finance, 8% by cash discount, 25% by Exchange offer, 25% by Free accessories and 34% by Extended warranty.

LIMITATIONS: 1) The research results are limited to Hubli City 2) All the practical experiences can not be put on the paper.

Babasabpatilfreepptmba.com

Page 4

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS RECOMMENDATIONS: The sample is collected in Tata service center were Tata vehicle brought for the service. The Data indicates that is is huge potential in the Indian automobile industry. Thus the Tata should differentiate themselves from there compitators even better then past and future so that they promote their products and try to keep their market monopoly. Nearly 66% of the people are interested to buy another car even though they have a car. Thus the recommendation i want to give is ,Try to keep the customers interest in Tata motors, dont give the chance to the customer to get dissatisfied .Which may probably result of changing their brand. Nearly 25% of the people do not have the car, thus all the 25% of the people are interested to own the car. This shows the potential of market in the Indian automobile industry. Thus Tata must make promotional activities and keep product differentation, so that they attract more customers. According to the survey most of the car buyers look to price of vehicle. The Tata has always kept the best price for his product and also has been successful in it.Thus the Tata must provide even better price for his product in the future. According to the survey most of the car buyers take suggestions of mechanics and family. Thus mechanics suggest Tata motors because of the Vehicle power , which has best in its segment. Family people suggest the Tata motors because of the space and comfort.

Babasabpatilfreepptmba.com

Page 5

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Schemes & offers given by the company influence the customer to change their decision. Tata motors must try to give offers & schemes as many as possible with in its rates. There are few customers who are not influenced by the offers & schemes , so to protect their interest maintain the features ,quality and service after sales. Offers and schemes have been effective in the promotional activity. Thats what the Tata has been doing .Hence Tata dealer must concentrate on offers like 0% finance and Free acceories, which has been less attractive to the customers.

Babasabpatilfreepptmba.com

Page 6

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS CONCLUSION: The Study of product line management and differentiation strategies employed by automakers in Mid-size car segment and its effect on consumer decision making. concludes the following. The data was taken looking to the scope in the Indian automobile industry. Thus the Tata TATA motors differentiated themselves from there competitors to promote their products and try to make their market monopoly in the diesel mid-size cars. The Data shows the people are interested to buy car. The Tata motors are trying to keep the interest of the present customers, and thus they are not giving any chances to customer to get dissatisfied. The people who do not have the car have expressed their interest of buying Tata motors. This indicates potential for the Tata motors in the Indian automobile industry. The Tata motors are making promotional activities and differentiating their product, so that they attract more customers. The Tata motor has kept the attractive low price for his product and has been successful in it. Thus the Tata motor is looking for even better price options for future launches. The many of Technical experts and Mechanics suggests the Tata motors, because of the resistant to the Indian rough roads. They mechanics suggest Tata motors because of the Vehicle power, which has best in its segment. Family people prefer the Tata motors because of the space and comfort. Schemes & offers given by the company influence the customer to change their decision. There are few customers who are not influenced by the offers & schemes ,so to protect their interest maintain the features ,quality and good service after sales.

Babasabpatilfreepptmba.com

Page 7

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS AUTOMOBILE INDUSTRY In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Industry Overview Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles. Snippets

The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. Page 8

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. Miscellaneous Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.

Babasabpatilfreepptmba.com

Page 9

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. In Brief The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernization process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the begining of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry Ford's first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed. Babasabpatilfreepptmba.com Page 10

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was built on compact and stylized lines, and was capable of 230 kmh (144 mph). This was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact.

Babasabpatilfreepptmba.com

Page 11

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

INDUSTRY INVESTMENT According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements. Current Scenario

On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing to source products and components at significant discounts to home market.

On the revenue side, OEMs are active in the booming passenger car market in India.

Overview

By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment.

Why India Babasabpatilfreepptmba.com Page 12

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

The economy of India is emerging. The following table shows the ranking of India in the past four years. Rank 1 2 3 4 5 6 7 2005 China India Thailand Vietnam USA Russia Korea 2004 China Thailand India Vietnam USA Russia Indonesia 2003 China Thailand USA Vietnam India Indonesia Korea 2002 China Thailand USA Indonesia Vietnam India Korea

Twin Advantages:

Scaling costs Optimizing resources

Note: Excellent source for IT based engineering solutions - for products & process integration. Facts & Figures The automobile industry in India is on an investment overdrive. Be it passenger car or twowheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone appears to be in a scramble to hike production capacities. The country is expected to witness over Rs 30,000 crore of investment by 2010. Over the next one year, some 20 new cars will be seen on Indian roads. Take note of this, Maruti Udyog is coming up with new Zen and the diesel version of Swift during the next few months. Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will be launching a mini and may be a compact car. Most of the companies have made their intentions clear. Maruti Udyog has set up the Babasabpatilfreepptmba.com Page 13

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS second car plant with a manufacturing capacity of 2.5 lakh units per annum for an investment of Rs 6,500 crore (Rs 3,200 crore for diesel engines and Rs 2,718 crore for the car plant itself). Hyundai and Tata Motors have announced plans for investing a similar amount over the next 3 years. Hyundai will bring in more than Rs 3,800 crore to India, Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore, Ford about Rs 350 crore and Toyota announced modest expansion plans even as Honda Siel has earmarked Rs 3,000 crore over the next decade for India - a sizeable chunk of this should come by 2010 since the company is also looking to enter the lucrative small car segment. Some new entrants will also taste the water. They are the big names in passenger cars like Citroen, Volkswagen AG, Nissan (separately, apart from its tie-up with Suzuki), Alfa Romeo, Maserati, Land Rover and Aston Martin. Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each announced well over Rs 1,000 crore of investment. Mahindra & Mahindra's joint venture with International Trucks is expected to see an infusion of at least Rs 500 crore. In two-wheelers segment, Chinese bike major Lifan and the iconic US brand HarleyDavidson are expected to enter India soon. Hero Honda is about to establish its fourth manufacturing plant. Bajaj Auto and TVS Motors are moving to the excise-free zones of Himachal Pradesh and Uttaranchal for putting up new capacity.

Babasabpatilfreepptmba.com

Page 14

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

INDIAN AUTOMOBILE INDUSTRY GROWTH The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent. Current Scenario

The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.

Overview

India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent. Estimated component market size is US$ 6.7 bn.

Facts & Figures India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said. Babasabpatilfreepptmba.com Page 15

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually. In the two-wheeler segment, according to the report, the motorcycles would clock 11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers. The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent. Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05.

Babasabpatilfreepptmba.com

Page 16

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.

Auto Component Market The Indian auto parts industry is significantly fragmented with a large number of players having a turnover of less than US$10 million per year. The industry directly employs about 2,50,000 people and has an annual turnover over US$ 56.3 billion.

Estimated market size - US$ 6.7 bn Estimated market size by 2012 - US$ 17 bn Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by Original Equipment Manufacturers (OEMs). Market Advantage

Fast paced urbanization to rise from 28% to 40% by 2020. Upward migration of household income levels. Middle class expanding by 30-40 million every year. Growing working population.

Babasabpatilfreepptmba.com

Page 17

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Vehicle Production in India India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks Indian Market Analysts are jubilant over the fact that India has the fastest growing automobile industry (passenger cars segment) in the world today. This is seen as the result of rapid increase of middle-class population in the country combined with the government's pro-development policies. The findings of International Organization of Motor Vehicle Manufacturers revealed that in India the car production had grown to 30% in 2004, thus leading the table, Brazil came a distant second with the increase of 17%. Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalization of the sector. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans. Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors. Current Scenario

The growth rate of Passenger Cars in 2004 was 30% in India where as the average growth rate of top 12 Passenger Cars producing countries were just 5.1%. In Heavy Trucks it was 32% and 14.6% respectively.

Component industry's growth was only 9% between 1997-2000. But between 20002005 it has grown to 20%. It is projected 17% between 2005-2014.

Babasabpatilfreepptmba.com

Page 18

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Overview

Largest industry in India. By 2010 there will be 13,008 million cars. Maruti Udyog Ltd. is the leading 4-wheelers manufacturer.

Production of 4-Wheelers Types of Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2002-03 557400 114470 51450 723320 2003-04 782550 146330 60670 989550 2004-05 960480 182020 67370 129870 2005-06 1045880 196380 66665 1308925

CAR STATISTICS INDIA The Indian automotive industry is the 2nd fastest growing in the world. About 8 million vehicles are produced annually in this country toady. During 2005-2006, India has emerged as the 3 rd largest market in the Asia Pacific Region. With various car manufacturing companies setting up their units in different parts of the country, the production of the cars will increase at a very fast rate. The car statistics indicate that India will soon become one of the top 10 car manufacturing countries , leaving behind the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car production capacity in India will exceed the mark of 2 million. Thus, the production of cars will increase by 70% from the present capacity of 1.2 million. The domestic sales of passenger cars have increased significantly over the years. A graphical representation of the domestic sale of cars will give you an insight about the present market situation prevailing in the country:

Babasabpatilfreepptmba.com

Page 19

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

In the recent years, India has emerged as one of the major bases for manufacturing small passenger cars. At present the Indian automotive industry boasts of being the 3 rd largest manufacturer of small cars. According to the car statistics almost 70 % of the cars sold in this country come under the segment of small cars. A number of car manufacturers like: Maruti Udyog, Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer various new model of cars now and then. It is expected that the various automobile manufacturers will be investing about $ 5 billion in India, between 2005-2010. As per the car statistics, export of passenger cars from India has also grown considerably over the last decade. A graphical representation of car export trend will help you to make an in-depth analysis of the present status of the Indian automotive industry: Babasabpatilfreepptmba.com Page 20

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

With new strategies being implemented and more investments being made in Indian automotive industry the production as well as the domestic sale and exports will increase substantially. A graphical representation of the total sale trend of passenger cars (including the domestic sale and exports) is given below:

Babasabpatilfreepptmba.com

Page 21

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

To know more about car statistics and matters related to automobiles, do browse through the pages of automobileindia.com. India definitely is shining; with a GDP that is sparkling at over 8 per annum the country certainly is on the right course. The automobile exports are at an all time high as was indicated by Society of Indian automobile Manufacturers in a report released in 2006. According to the report, the passenger car segment saw a rise of 9% in January 2006. The following table will provide a clear picture of the rapid rise of automobile Export in India. Types of Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2002-03 70250 1180 570 72000 2003-04 125300 3050 915 129265 2004-05 160650 4510 1225 166385 2005-06 170200 4490 1100 175790

Babasabpatilfreepptmba.com

Page 22

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Analysis of Indian Exports: Strengths

Cost competitiveness in terms of labor and raw material. Established manufacturing base. Economics of scale due to domestic market. Potential to harness global brand image of the parent company. Global hub policy for small car like Hyundai, Suzuki, etc.

Weakness

Perception about quality. Infrastructure bottlenecks.

Opportunities

Huge export markets such as Europe, America, Africa, and others for Indian cars.

Threats

China, Malaysia, Thailand, etc. Many other countries also have strategies for export promotion.

Export Imperatives: Internal Factors:


Attaining high quality for global standards. Continuous cost reduction for global competitiveness. Supply chain management (logistics). Attaining economies of scale & scope.

External Factors:

Improve infrastructure (ports, roads, etc). Page 23

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Improve EXIM regulations.

VEHICLE DISTRIBUTION IN INDIA Maharashtra has maximum number of registered vehicles in India. Overview In this section we will discuss about distribution of vehicles in Indian States and Union Territories. If we look at the graph of vehicle distribution by area, we will learn that in Maharashtra, maximum number of vehicles ply. Check yourself from the following details: Non-Transport Vehicles in States

Maharashtra has the most number of vehicles followed by Tamil Nadu and Gujarat The figures are 8133837, 8004982 and 6508397 units respectively. In cars , Maharashtra leads the path with 831261 registered cars and next to it is Tamil Nadu and Gujarat having 690271 and 504801 registered units respectively. In two-wheelers, Tamil Nadu has registered the maximum units, 6260093.

Transport Vehicles in States


Maharashtra is the leader once again with a total of 1066610 registered vehicles. In Light Motor Vehicles for goods Maharashtra has registered 228157 vehicles; Tamil Nadu with 195069 vehicles holds the second position. In Light Motor Vehicles for passengers, Maharashtra tops by having 463550 units and Kerala follows with 276244 units. Most number of taxis ply is Tamil Nadu which is followed by Kerala and then by Maharashtra. The figures are 110080, 108503 and 94920 units respectively.

Non Transport Vehicles in Union Territories

Total non-transport vehicles in the Indian Union Territories are 4669433.

Babasabpatilfreepptmba.com

Page 24

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Delhi has the maximum registered non-transport vehicles plying, 3751582. Next is Chandigarh with 548790 and Pondicherry with 275422 registered vehicles.

Transport Vehicles in Union Territories


Total numbers of transport vehicles in the Indian Union Territories are 6999998. Delhi has the maximum registered transport vehicles plying, 219288. Next is Pondicherry with 17054 and Chandigarh with 12985 registered vehicles.

Follow the link below to know the distribution of automobiles in details:

Babasabpatilfreepptmba.com

Page 25

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

PROFILE OF THE ORGANISATION

JEHANGIR RATANJI DADABHOY (JRD) TATA:


J.R.D. TATA was born on July 29, 1904 in Paris. He was second child of Ratanji Dadabhoy Tata and his French wife Coni. He spends his early years in Hardelot a beach town in France, where his interest in flying comes out. His interest varied like he was desired to become a scholar at Cambridge, had a passion for fast cars. He has served in regiment called Les Sap his (The Sepoys) with the French Army in 1924. On the death of Nouroji Saklatvala, Chairman of Tata and sons in the year 1938 JRD Tata was 34th old, catapulted to the head of Indias largest industrial empire. He guided the destiny of Indias largest business house over half a century. In the year 1939 Tata Chenicals started its struggle towards pioneering a self reliant, basic inorganic chemical industry for India in the face of repeated crisis in the year 1945 just before Indias independence, Tata Steel promoted the Tata Engineering and Locomotive Company with the objective of making locomotives for the Indian Railways. Today, TATA has emerged as the largest Passanger Vehicle producer. In the year 1932 it pioneered civil aviation on the subcontinent by launching the groups Airline, which is today The National Airline. Dr. Homi babas ambition to catapult India in to the nuclear age was found by JRD Tata, also initiated in the family planning movement, preserving the countrys priceless flock arts. Other than these most important were his guidance for Indias largest business group employing more than a quarter million over half a century.

Babasabpatilfreepptmba.com

Page 26

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

RATAN TATA :
Under him the Tata Engineering and locomotive company was incorporated in the year 1945 in Jameshedpur for the manufacture of commercial vehicles. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. The company's 22,000 employees are guided by the vision to be "best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics." Tata Motors helps its employees realize their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. All-round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognizing its training programmes. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also

Babasabpatilfreepptmba.com

Page 27

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS has a strong auto finance operation, TML Financial Services Limited, supporting customers to purchase Tata Motors vehicles. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Crdoba, Argentina. The pick-up will be sold in South and Central America and select European markets. These linkages will further extend Tata Motors' international footprint, established through exports since 1961. While currently about 18% of its revenues are from international business, the company's objective is to expand its international business, both through organic and inorganic growth routes. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the

Babasabpatilfreepptmba.com

Page 28

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Middle East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. The foundation of the companys growth is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. The R&D establishment includes a team of 1400 scientists and engineers. The company's Engineering Research Centre was established in 1966, and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering technologies and products. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune, among whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration, has received several awards from the Government of India. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999, the National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and the CSIR Diamond Jubilee Technology Award in 2004. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. TMETC is engaged in design engineering and development of products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain. The pace of new product development has quickened through an organisation-wide structured New Product Introduction (NPI) process. The process with its formal structure for introducing new vehicles in the market, brings in greater discipline in project execution. The NPI process helped Tata Motors create a new segment, in 2005, by launching the Tata Ace, Indias first indigenously developed mini-truck. The years to come will see the introduction of several other innovative vehicles, all rooted in emerging

Babasabpatilfreepptmba.com

Page 29

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS customer needs. Besides product development, R&D is also focussing on environmentfriendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations. With the foundation of its rich heritage Tata Motors today is etching a refulgent future. Tata Motors (Previously known as Tata Engineering and Locomotive Co) is the youngest passenger car company in the world. It was established in the year 1945. Initially, they were into the manufacturing of trains. However, Tata motor is solely responsible for showcasing India's automotive industry to the rest of the world. It did so by designing and developing its own indigenous cars and thus placing India on the world automobile map. Tata Motors much like its parent company (Tata Group) has far fetched vision and always thrives for excellence. It was established with a vision of becoming a global car manufacturer from India. And today, it has indeed achieved its feat of becoming a global player in the automobile industry. It has a wide range of automobiles varying from commercial vehicles to passenger vehicles to multi-utility vehicle etc. Tata Motors is very committed to issues like Corporate Social Responsibility, Human Rights, Labour, and Environmental Standards. They are partners to the United Nations Global Compact. Babasabpatilfreepptmba.com Page 30

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Tata Motors is India's largest automobile company and the sixth biggest commercial vehicle manufacturer in the world. In the year 2004, it became the first Indian Engineering Company to be listed in the New York Stock Exchange. The company had earned revenue of Rs 24,000 crores for the financial year of 2005-06. Hence, making its' presence felt on the Indian roads on a regular basis. Since, 1954 (when the first Tata vehicle was launched) till today, over 3.5 million Tata vehicles ply on the Indian roads.

Today, Tata is a global player having markets in Europe, Africa, South Asia, South East Asia, Middle East and Australia. This leap in the global market started from 1961. Once, the export division was established. Tata Motors initially started by manufacturing trucks by collaborating with Daimler Benz of Germany form 1954 till 1969. At that point of time, the trucks that were manufactured were known as Tata Mercedes-Benz Trucks. However, after the collaboration period was over, the trucks were then called Tata Trucks. But it was just the starting for them. Later, in the early 90's they entered the passenger vehicle segment by launching the Tata sierra, (India's first sports vehicle) and the Tata Estate. However, the biggest achievement came later in 1998, when Tata developed the first indigenously developed small car of India called the Tata indica. And then Tata Indigo was launched in 2002. The name "indica" came from the words "India's Car". And very soon Tata indica became the most popular car in this segment. Then, later in 2005 they launched India's first indigenously developed Mini- Truck called the Tata Ace. Recently, in order to fulfill its global dream, Tata Motors has acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck manufacturer, in the year 2004. In 2005, they acquired 21% stake in Hispano Carrocera, a Spanish bus and coach manufacturer. They have manufacturing plants in Jamshedpur, Pune and Lucknow. They also have assembly operations in Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russia and Senegal. Babasabpatilfreepptmba.com Page 31

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

The success story of Tata Motors can be based on the facts that they have excellent foresight, they understand the needs and the wants of their customers very well, they have a well organized and efficient R&D department and that they have high aims and standards which are fulfilled but not at the cost of quality and efficiency. AREAS OF BUSINESS Tata Motors' product range covers passenger cars, multi-utility vehicles and light, medium and heavy commercial vehicles for goods and passenger transport. Passenger car The Company launched the compact Tata Indica in 1998, the sedan Indigo in 2002 and the station wagon Indigo Marina in 2004. The next car to be rolled out will be the Nano, unveiled in January 2008. Tata Motors already distributes Fiat-branded cars in India. Utility vehicles Tata Sumo was launched in 1994 and Tata Safari in 1998. Variants of these models are also available in the market. Commercial vehicles The company entered the mini-truck segment in 2005 with Tata Ace. The commercial vehicle range extends from the light two-tonne truck to heavy dumpers and multi-axled vehicles in the above 40-tonne segment. Through the Tata Daewoo Commercial Vehicle Company it offers high horsepower vehicles of 220 HP to 400 HP for dump trucks, tractortrailers, mixers and cargo applications. The company also manufactures and sells passenger buses 12-seaters to 60-seaters in the light, medium and heavy segments, including Magic, a four-wheeler public transport developed on the Ace platform, and Winger, a maxi-van.

Babasabpatilfreepptmba.com

Page 32

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Research and development Tata Motors has over 1400 engineers and scientists in six R&D centers in India, South Korea, Spain and the UK. The company's R&D facilities include India's only certified crash-test facility and a hemi-anechoic chamber for testing of noise and vibration. The company draws on the expertise of leading international design and styling houses such as the Institute of Development in Automotive Engineering and Stile Bertoni in Italy. The company is developing environment-friendly electric and hybrid vehicles as well as vehicles that can run on alternate fuels (such as biofuels and hydrogen) for personal and public transportation. It also implements several environment-friendly technologies in manufacturing processes so as to enhance resource conservation. Exports Tata Motors' vehicles are exported to Europe, Africa, the Middle East, South and South East Asia and South America. The company has joint ventures and franchisee operations in Bangladesh, Ukraine, Kenya, Russia and Senegal. Associates Tata Motors is pursuing growth internationally through exports and acquisitions. It has a joint venture with Marcopolo, the Brazil-based maker of bus and coach bodies. It has also entered into a joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. Tata Motors and Fiat Auto have entered into an agreement for a Tata license to build a commercial vehicle at Fiat's facilities in Crdoba, Argentina. The company has made substantial investments in building a network of associate and subsidiary companies and joint ventures that complement and support its business activities. These include:

Tata Daewoo Commercial Vehicle Company is a 100 per cent subsidiary of Tata Motors in the business of heavy commercial vehicles. It is South Korea's second largest truck maker and the largest exporter of heavy trucks.

Babasabpatilfreepptmba.com

Page 33

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Telco Construction Equipment Company makes construction equipment and offers allied services. Tata Motors has a 60 per cent holding; the rest is held by Hitachi Construction Machinery Company, Japan.

Tata Technologies provides specialized engineering and design services, product lifecycle management and product-centric information technology services. It has two operating companies, INCAT and Tata Technologies iKS.

Tata Cummins manufactures high horsepower engines used in the company's range of commercial vehicles. HV Transmissions and HV Axles are 100 per cent subsidiaries that make gearboxes and axles for heavy and medium commercial vehicles. TAL Manufacturing Solutions is a 100 per cent subsidiary that provides factory automation solutions and designs and manufactures a wide range of machine tools. Tata Motors European Technical Centre is a UK-based 100 per cent subsidiary engaged in design engineering and development of products. TML Financial Services is a 100 per cent subsidiary in the business of financing customers and channel partners of Tata Motors. Hispano Carrocera is a reputed Spanish bus manufacturing company in which the company has acquired a 21 per cent stake. Tata Auto Comp Systems (TACO) is a holding company for promoting domestic and foreign joint ventures in auto components and systems. It is also engaged in engineering services, supply chain management and after-market operations for the auto industry.

Concorde Motors is a 100 per cent subsidiary that retails Tata Motors' range of passenger vehicles

Corporate social responsibility Tata Motors is a signatory to the United Nations Global Compact. It focuses on health, education, water management, environment and employment generation issues in areas where it operates. These continuing initiatives have received national recognition: Tata Motors was conferred the 'CII-ITC Sustainability Award 2006 for Significant Achievement Babasabpatilfreepptmba.com Page 34

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS on the Journey towards Sustainable Development' and the 'Golden Peacock Award for Corporate Social Responsibility'. Tata Motors has led the Indian automobile industry's anti-pollution efforts through a series of initiatives in effluent and emission control. The company introduced emission control engines in its vehicles in India before the norm was made statutory. Modern effluent treatment facilities, soil and water conservation programmes and tree plantation drives at its plant locations contribute to the protection of the environment and the creation of green belts. Location Tata Motors' plants are located at Jamshedpur (eastern India), Pune (west), Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a common manufacturing facility at Ranjangaon, near Pune. The company is establishing two new plants at Dharwad (south) and Singur (east). Contact Bombay House 24, Homi Mody Street Mumbai 400 001 India Phone: +91 (22) 6656 1676 Email: am@tatamotors.com Email for international inquiries: rbc@tatamotors.com MILESTONES: It has been a long and accelerated journey for Tata Motors, India's leading automobile manufacturer. Some significant milestones in the company's journey towards excellence and leadership. Babasabpatilfreepptmba.com Page 35

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

1945 1948 1954

Tata Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other engineering products.

Steam road roller introduced in collaboration with Marshall Sons (UK). Collaboration with Daimler Benz AG, West Germany, for manufacture of medium commercial vehicles. The first vehicle rolled out within 6 months of the contract.

1959 1961 1966

Research and Development Centre set up at Jamshedpur. Exports begin with the first truck being shipped to Ceylon, now Sri Lanka. Setting up of the Engineering Research Centre at Pune to provide impetus to automobile Research and Development.

1971 1977 1983 1985 1986

Introduction of DI engines. First commercial vehicle manufactured in Pune. Manufacture of Heavy Commercial Vehicle commences. First hydraulic excavator produced with Hitachi collaboration. Production of first light commercial vehicle, Tata 407, indigenously designed, followed by Tata 608.

1989 1991

Introduction of the Tatamobile 206 - 3rd LCV model. Launch of the 1st indigenous passenger car Tata Sierra. TAC 20 crane produced. One millionth vehicle rolled out. Launch of the Tata Estate. Joint venture agreement signed with Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly diesel engines.

1992 1993

1994

Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward control, light commercial vehicle. Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz Page 36

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS for manufacture of Mercedes Benz passenger cars in India.

Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers to be used on Cummins engines.

1995 1996 1997

Mercedes Benz car E220 launched. Tata Sumo deluxe launched. Tata Sierra Turbo launched. 100,000th Tata Sumo rolled out. Tata Safari - India's first sports utility vehicle launched. 2 millionth vehicle rolled out. Indica, India's first fully indigenous passenger car launched. 115,000 bookings for Indica registered against full payment within a week. Commercial production of Indica commences in full swing. First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched. Utility vehicles with Bharat 2 (Euro II) compliant engine launched. Indica 2000 (Euro II) with multi point fuel injection petrol engine launched. Launch of CNG buses. Launch of 1109 vehicle - Intermediate commercial vehicle. Indica V2 launched - 2nd generation Indica. 100,000th Indica wheeled out. Launch of CNG Indica. Launch of the Tata Safari EX Indica V2 becomes India's number one car in its segment. Exits joint venture with Daimler Chrysler. Page 37

1998

1999

2000

2001

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS 2002

Unveiling of the Tata Sedan at Auto Expo 2002. Petrol version of Indica V2 launched. Launch of the EX series in Commercial vehicles. Launch of the Tata 207 DI. 2,00,000th Indica rolled out. 5,00,000th passenger vehicle rolled out. Launch of the Tata Sumo'+' Series Launch of the Tata Indigo. Tata Engineering signed a product agreement with MG Rover of the UK. Launch of the Tata Safari Limited Edition. The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out 135 PS Tata Safari EXi Petrol launched Tata SFC 407 EX Turbo launched Tata Motors unveils new product range at Auto Expo '04. New Tata Indica V2 launched Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement Indigo Advent unveiled at Geneva Motor Show Tata Motors completes acquisition of Daewoo Commercial Vehicle Company Tata LPT 909 EX launched Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty truck 'NOVUS' , in Korea Sumo Victa launched Page 38

2003

2004

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Indigo Marina launched Tata Motors lists on the NYSE Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in Pune The Tata Xover unveiled at the 75th Geneva Motor Show Branded buses and coaches - Starbus and Globus - launched Tata Motors acquires 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company Tata Ace, India's first mini truck launched Tata Motors wins JRD QV award for business excellence. The power packed Safari Dicor is launched Introduction of Indigo SX series - luxury variant of Tata Indigo Tata Motors launches Indica V2 Turbo Diesel. One millionth passenger car produced and sold Inauguration of new factory at Jamshedpur for Novus Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched Launch of Tata Novus Launch of Novus range of medium trucks in Korea, by Tata Daewoo Commercial Vehicle Co. (TDCV)

2005

2006

Tata Motors vehicle sales in India cross four million mark Tata Motors unveils new long wheel base premium Indigo & X-over concept at Auto Expo 2006 Indica V2 Xeta launched Passenger Vehicle sales in India cross one-million mark Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses & coaches for India & markets abroad Tata Motors first plant for small car to come up in West Bengal Page 39

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Tata Motors extends CNG options on its hatchback and estate range TDCV develops South Korea's first LNG-Powered Tractor- Trailer Tata Motors and Fiat Group announce three additional cooperation agreements

Tata Motors introduces a new Indigo range Tata Motors launches the longwheel base Indigo XL, India's first stretch limousine Tata Motors' integrated Customer Relationship Management (CRM)Dealer Management System (DMS) initiative crosses the significant milestone of covering 1000 locations in India and abroad.

2007

Tata Motors introduces Magic & Winger - creates new segments in urban and rural passenger transportation.

Management:
Board of Directors

Mr. Ratan N Tata (Chairman) Mr. N A Soonawala Dr. J J Irani Mr. V R Mehta Mr. R Gopalakrishnan Mr. Nusli N Wadia Mr. S M Palia Page 40

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Dr. R A Mashelkar Mr. Ravi Kant Mr. P M Telang

Senior Management

Mr. Ravi Kant Mr. P M Telang Mr. Rajiv Dube

Managing Director Executive Director (Commercial Vehicles) President (Passenger Cars) Chief Financial Officer Vice President (Corporate Finance-Accounts and Taxation) Vice President (Human Resource) Vice President (Technical Services) Head (Car Plant)

Mr. C Ramakrishnan Mr. P Y Gurav Dr. S J Tambe Mr. Zackria Sait Mr. A M Mankad

Mr. S B Borwankar Head (Jamshedpur Plant) Mr. S Krishnan Vice President (Commercial-PCBU)

Mr. Ravi Pisharody Vice President (Sales & Marketing)

Babasabpatilfreepptmba.com

Page 41

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Mr. H K Sethna

Company Secretary

Corporate Communications

Mr.

Debasis

Ray

Tel: 022 - 66657613

Head - Corporate Communications

Flash Figures for March, 2008 PRODUCTION Category Mar'08 M HCV LCV* CARS TOTAL & 20312 14628 21024 61881 17785 14352 6325 21024 59486 15586 11601 5007 16978 49172 175383 167988 49715 182212 575298 185091 151499 50074 195782 582446 136111 107380 40378 169689 453558 Mar'07 Mar'06 2007-08 2006-07 2005-06

UTILITY 5917

SALES A. For the month Domestic Exports Total

Category Mar'08 Mar'07 Mar'06 Mar'08 Mar'07 Mar'06 Mar'08 Mar'07 Mar'06 Babasabpatilfreepptmba.com Page 42

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS M HCV LCV* CARS TOTAL & 20639 15354 18177 60730 17673 13047 6109 19651 56480 16312 10977 4954 17655 49898 1637 3076 57 995 5765 1410 2948 118 1823 6299 1036 2915 367 2190 6508 22276 18430 6617 19172 66495 19083 15995 6227 21474 62779 17348 13892 5321 19845 56406

UTILITY 6560

B. For the year Domestic Category 2007-08 2006-07 2005-06 M HCV LCV CARS TOTAL & 166037 173381 128714 13363 11560 8249 147334 125792 86236 47893 37905 2599 1416 1881 179400 184941 136963 50299 49309 39786 26100 23412 21848 173434 149204 108084 Exports 200708 200607 200506 Total 200708 200607 200506

UTILITY 47700

167058 179000 150951 12210 16408 18561 179268 195408 169512 528129 526066 403806 54272 52796 50539 582401 578862 454345

Manufacturing Units: Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.

Babasabpatilfreepptmba.com

Page 43

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Jamshedpur: Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab & Cowl Factories, and the Novus. Pune: The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad (130 acres). It was established in 1966 and has a Production Engineering Division, which has one of the most versatile tool making facilities in the Indian sub-continent.

Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. Uttarakhand The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand. The plant will begin commercial production during the course of the year.

Babasabpatilfreepptmba.com

Page 44

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS INTRODUCTION TO MANICKBAG Service of Manickbag: Manickbag is a exclusive showroom for Tata motors situated in vidyanagar Hubli. It is the single showroom Which cover 6 districts Viz. Bagalkot, Dharwad, Belgaum , Bijapur, Gadag and Haveri. It is having small showroom at ankola an bijapur to cover other areas, Which are working under the guidance of Manickbag the main branch. It is using promotional activities such as periodical advertisement , Offers and insurance, Road shows and demonstrations. Sales executives are playing an important role in attaining the enquires of their customers. Since Manickbag is the only big showroom the promotional activities conducted are not reaching effectively to customer of other districts, It shows that most of their sales are in Dharwad district simultaneously it is loosing customers in other districts. Presently they are in: Hindustan petroleum Simpson Mico Kirloskar Bearing TVS Motors Sesa goa pig iron cike & coal T ATA Motors BRANCHES OF MANICKBAG Head Office: Hubli Branches: Belgaum, Bijapur, Ankola, and Gulbarga. since 1950 since 1951 since 1956 since 1975 since 1979 since 1990 since 1992

SERVICE SETUP: Bagalkot, Bidar, Chikodi MAN POWER: Workers Staff Service 528 320 200 Page 45

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS ACHIEVEMENTS: Best dealership award from TELCO. Best dealership award from MICO. Best dealership award from TVS. ACTIVITIES: 1. Sales of Tata motors cars. 2. Service/repair of all range of Tata cars. 3. Sales of Tata cars spare parts. ADRESS FOR CONTACT: Manickbag automobiles pvt. Ltd, Unit of tata motors ltd, Vidyanagar P.B.Road Hubli- 580031 Tel : 0836 2374535 / 2372486 e-mail: salespcdh@manickbag.com INFRASTRUCTURE AVAILABLE: Cover area Open area No. Of bays No. Of operational bays No. Of PDI (pre delivery inspection Bays) No. Of bays foe accident repairs Bays (parking area) No. Of trained mechanics No. Of trained supervisors 1 acre 4500 sq feet more than 50 12 02 12 4 acres 125 06

Babasabpatilfreepptmba.com

Page 46

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS TWO MAIN DIVISONS IN THE FIRM: 1. Commercial vehicle division. 2. Passenger vehicle division. DEPARTMENT PROFILE: There are mainly four departments in manickbag automobiles pvt ltd. They are 1. Sales department 2. Service department 3. Spares department 4. Account department 1.SALES DEPARMENT: Sales department is headed by sales manager Mr. Wilson A.M under him Show in charge Asst. sales manager Finance executive Sales executive Customer care executive 2. SERVICE DEPARTMENT: Mr Mahaveer angadi heads service department and under his guidance. Service advisor PDI in Charge Customer car executive Denting and Painting in Charge Mr Sunil.Aingad & Mr Sunil Iraddi & Mr. Sham Shuddin Mr. Kalappa Miss Safena Mr Vonid Mr. Salikoppa Mr. Anand Barimani & Mr. Karikatti Mr. Ravi Shetti Mr. Anil Hittalmani & Mr. G.N. Kulakarni Miss. Savita

3. Spares Department Babasabpatilfreepptmba.com Page 47

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Mr. Kishore Kurthkoti heads it under his guidance: Mr. G.M.Hegde Mr. Akbar Mr.Vinayak 4. Accounts Department: Mr. Shindey Maintains all the records

SWOT Analysis
Strengths: The can ask for test drive The customers are attended as soon as they come. The area available for operation is very spacious They have their own finance. The dealers have high goodwill in the market for service. The presence of effective flow of communication between the departments of the Manickbag is the greatest strength, which ensures smooth flow of operations. Weakness: Tough competitions from the other companies. The dealer prefers experience rather than talent. Diffculty in marketing petrol cars as it is set in minds of public that TATA is for diesel vehicles. Opportunities: It can capture rural areas when they are going to launch their new vehicle. The dealer can go for diversification The dealer can conduct exchange promotional activities to increase its sales.

Babasabpatilfreepptmba.com

Page 48

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Threats: Changing market trends Competition from other models. Globalization and privatization. Any sudden changes in the government policy may effect the sales. New interacts from compitators like price and quality. Change in the market that is from sellers market to buyers market.

Research & Development:


Babasabpatilfreepptmba.com Page 49

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Research provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. World-class automotive research and development are key factors that contribute to the leadership of the Company. Engineering, Research, Centre (ERC): The Research Centre at Jamshedpur regularly upgrades components and aggregates. A well-equipped torture track enables rigorous and exhaustive testing of modifications before they are used as regular fitments. The Engineering Research Centre in Pune was setup in 1966 and is among the finest in the country. It has been honored with two prestigious awards - 'The DSIR National Award for R&D Effort in Industry - 1999' and 'National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern - 2000.' Facilities: Engine Performance Test Beds Chassis Dynamometer Emission Lab Electrodynamic Vibration Shaker Platform Instrumentation Laboratory Test Beds: Tata Motors has 24 engine test beds for engine development. These are fully automated with computerised data acquisition and logging. They are used to test performance, endurance, and durability. They are also used in development of components and other engine aggregates. The dynamometers ranging from 200 Hp to 500 Hp are capable of looking after all the existing and future petrol, diesel, and CNG engines of Tata Motors. Three test beds are equipped with emission analyzers. They are engaged in emission development for Euro

Babasabpatilfreepptmba.com

Page 50

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS norms. Six test beds are equipped with 'Intake Air Conditioning Systems' to feed combustion air at ref. temp, pressure and humidity to the engine. The latest addition is a contemporary "High Dynamic Transient Dynamometer" (HDTD) installed in December 2000 which permits all 'chassis dynamometer' drive cycles to be run on it. It has an Emission System, Dynamometer and Software. The powerful software simulates the driver and all vehicle aggregates like gearbox and drive train, other than the engine. Chassis Dynamometer Emission Lab:The ERC has a specialized AVL Zollner Chassis Dynamometer with a 508mm-twin roller for checking the emission levels of chassis. It is certified by UTAC, TUV, INTA and ARAI. With a 125 kw generator, it can cater to the maximum vehicle speed of 210 km/h. Inertia simulation ranges from 567kg to 3000 kg. The Horiba 9000 emission system has separate CVS units for petrol and diesel. Electrodynamics Vibration Shaker Platform: It is used for testing engine components and assemblies against vibrations. It works with a rated force of 2000 kgf on X, Y, and Z-axis. The maximum displacement is 40 mm and the maximum acceleration is 65g. It has a platform table size of 1000x1000 mm. The whole set-up has a PC based control and automation system.

Instrumentation Laboratory: The 'Instrumentation Laboratory' at ERC Engines is equipped with a range of instruments to assist engine development. These include data acquisition systems, air flow meters, blow-by meters, smoke meters, oil consumption meters, incometer & topometer, piston profile tester, FIP test rig, Swirl test rig, and many other support equipments to cater to routine engine development activities.

Reducing Emissions: Babasabpatilfreepptmba.com Page 51

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS A specialized laboratory has been set up to measure levels of emission of vehicles

Durability Testing Test Tracks Four Poster Servo-Hydraulic Test Facility

using either petrol, diesel or CNG. This laboratory helps Tata Motors achieve fuel consumption efficiencies that would conform to international standards, under varying driving cycles. It stands testimony to Tata Motors commitment to help bring down levels of atmospheric pollution caused by vehicular exhaust. Test Tracks: High-speed tracks are specialized tracks for testing endurance of cars and commercial vehicles. The Tata Motors torture tracks and high-speed tracks in Jamshedpur and Pune are the only one of their kind In the country. The torture track has 4 segments. Each segment affords a different type and level of stress testing for the vehicle chassis and aggregates. The tracks subject the chassis to shock, twisting, and bending loads. 1000 cycles on this torture track are equivalent to approximately one and a half lakh kms of running on regular roads. It thus provides a valid test of chassis and vehicle durability. Four Poster Servo-Hydraulic Test Facility: Four Poster Servo-Hydraulic Test Facility consists of four posts for mounting the vehicle. The vehicle is subjected to vertical motions equivalent to road undulations similar to actual runs on a test track. These tests conducted in a lab under controlled conditions are accurate and unaffected by external factors that could hamper testing activity. Safety (CRASH TEST FACILITY):

Babasabpatilfreepptmba.com

Page 52

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS For Tata Motors, safety is of paramount importance. This avenue provides no room for the slightest margin of error. Tata Motors ERC is the only high-tech facility in India to evaluate the degree of passenger safety in the event of any high-speed impact. Through a special crash test facility. Different types of accidents are simulated; the results analysed, and put to use in the development of a vehicle that satisfies stringent international safety norms. Special high-speed cameras record test crashes at the rate of 1000 frames per second. An accident, for instance, at the speed of 50 kilometers per hour, lasts one eighth of a second. Thus, 125 frames recorded by these cameras are available for study with the Minimising Noise (ANECHOIC CHAMBER): Anechoic chamber is a highly sophisticated noi vibration laboratory, the nerve centre of which is a vast chamber lined with 88,000 cones projecting at various angles from the walls and ceiling. It is one of its kind in India and is developed completely with in-house facilities. A number of cones, made of glass wool, are covered with fire retardant material and absorb sound generated within this chamber. There are rubber dampers, and a meterthick wall of air surrounds the chamber itself. Designed to achieve 99.5% noise absorption, the chamber is used to test noise and vibration levels created by vehicles. For eg. The noise of a door being shut, the click of a switch or an engine being started.

Designing and Styling (CAD CENTRE): The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest software. The CAD centre is a vital organ of ERC's Cab Design Section.

CAD designing involves development of vehicle specifications, styling interiors and exteriors, reviewing the styling from the engineering and aesthetic points of view, virtual Babasabpatilfreepptmba.com Page 53

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS prototyping to check for design acceptability and feasibility of manufacture. Based on this information, several running prototypes are made and tested. It is only after all flaws, if any, are corrected using CAD systems, that vehicles are approved for mass production. AWARDS: PCBU bags Handa Golden Key Award Tata Motors receives Uptime Champion Award 2007 'NDTV Profit' Business Leadership Award: Tata Motors bags National Award for Excellence in Cost Management: Tata Motors bags National Award for Excellence in Cost Management... Tata Motors was awarded four prestigious honours, at the 'CNBC TV18- Autocar Au... Business Today selects Mr. P.P. Kadle as India's Best CFO in 2005... Pune Foundry Division bags prestigious Green Foundry Award... Tata Motors is 'Commercial Vehicle Manufacturer of the Year'... ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.... Jamshedpur bags National Energy Conservation Award for the fourth consecutive ye... Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence... Tata Motors receives JRD QV awards for Business Excellence... Tata Motors is 'Commercial Vehicle Manufacturer of the Year'... Babasabpatilfreepptmba.com Page 54

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS TNS Voice of the Customer Award for Indica Diesel... 'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director -... Tata Motors wins the prestigious 'Corporate Platinum' Award at the India Manuf... Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility... Tata Motors CVBU Pune wins National Energy Award... Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'... Tata Motors wins the first CSIR Diamond Jubilee Technology Award... Tata Motors Training Division Wins "Golden Peacock National Training Award 2004"... TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES... Tata Indica and Tata Safari EXi win awards... Tata Motors-Car plant gets two ISO certifications... Tata Motors bags awards at 14th National Convention of INSAAN... Indica and Safari win accolades... TATA MOTORS PUNE AWARDED SECOND PLACE IN NATIONAL LEVEL COMPETITION IN ENERGY CO... Tata Motors Receives "India's Best Employer" Award From The Employe... Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute... Tata Motors team wins The Runners Up Position at The Asian Business Simulation C...

Babasabpatilfreepptmba.com

Page 55

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS THE PRESTIGIOUS BALANCED SCORECARD COLLABORATIVE HALL OF FAME AWARD. Tata Motors receives all India trophy for Top Exporters. Tata Indigo ad campaign wins Effie award. Golden Peacock Environment Management Award - 2003. Industry and Technology Award, 2002. Advertising Awards. Tata Indigo - Most Exciting New Car of the Year - ICICI Bank & Overdrive Awa. Tata Engineering - A Socially Responsible Corporate, says TERI . 'Prof. Vasant Rao Rolling Trophy' for Value Engineering - 2002. Tata Engineering was conferred Bharat Gaurav Puraskar. Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto Awards . 'Voice of the Customer Award' for 'Best Diesel Small Car' - Tata Indica by NFO A. India CFO Award 2002. Tata Engineering bags INSAAN awards. National Best Training Establishment Award. Envirointernational. Good Corporate Citizen award. National Award for Successful Commercialisation of Indigenous Technology. Babasabpatilfreepptmba.com Page 56

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS National Award for R&D Efforts. Regional Top Exporter's Trophy.

Products Of TATA Motors:

Indica V2 Indica V2 Turbo Indica V2 Xeta Indica V2 Dicor

Indigo Marine

Indigo CS

Babasabpatilfreepptmba.com

Page 57

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Indigo Indigo XL

Fait Palio Stile Multijet

Fait Bravo

Babasabpatilfreepptmba.com

Fait 500

Page 58

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Safari Dicor

Sumo grande

TATA Sumo

Babasabpatilfreepptmba.com

Page 59

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Trucks: Medium and heavy commercial Vehicals Intermediate commercial vehicals Light commercial vehicals Small commercial vehicals Tata Novus TL 4x4

Defence Vehicals

Star buses and Globus Other buses

Babasabpatilfreepptmba.com

Page 60

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Latest launch of Tata motors for 2008: TATA Nano ( worlds cheapest car)

The Nano will be launched in India later in 2008. The car will be available in both standard and deluxe versions. Both versions will offer a wide range of body colours, and other accessories so that the car can be customised to an individual's preferences. Fuel-efficient engine. Meets all safety requirements . Environment-friendly. Tata sumo Grande :

Babasabpatilfreepptmba.com

Page 61

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

TECHNICAL SPECIFICATIONS & FEATURES EngineFuel Type Diesel 2.2L DICOR (Direct Injection Common Rail) with 16 Valve DOHC, 32 Bit ECU, Aluminium Cylinder Head and Variable Capacity (cc) Max. Output (PS) at rpm Max. Torque (Nm) at rpm Weight: Kerb Weight (Kgs) Gross Vehicle Weight (Kgs) Fuel Tank Capacity (Ltrs.): 65 Tatas compitators in cars, Suvs and Muvs : Mahindra & Mahindra Maruti Suzuki Hyundai Toyota Ford Page 62 1940 2625 Geometry Turbocharger 2179 120 @ 4000 250 @ 1500-3000

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Fait General Motors Skoda Honda Renault Mitsubishi Hindustan Motors

ompitator in Mid-size cars: MODEL Ambassador, Avigo, Grand. (Petrol and Diesel versions) Chevrolet Aveo (Petrol and Diesel versions) Genral Motors COMPANY Hindustan Motors

Chevrolet Aveo UVA (Petrol and Diesel versions)

Chevrolet

Babasabpatilfreepptmba.com

Page 63

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Chevrolet Spark ( Only Petrol version) Chevrolet

Fait India Fiat Palio (Petrol and Diesel versions)

Fiat Petra (Petrol and Diesel versions)

Fait India

Ford Ikon (Only Petrol Version)

Ford Motors

Ford Fiesta (Petrol and Diesel versions)

Ford Motors

Babasabpatilfreepptmba.com

Page 64

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Hyundai Accent (Petrol and Diesel versions) Hyundai Getz Prime (Petrol and Diesel versions) Hyundai Motors Hyundai Motors

Hyundai Elantra (Petrol and Diesel versions)

Hyundai Motors

Hyundai Santro (Only Petrol version)

Hyundai Motors

Hyundai Verna (Only Petrol Version)

Hyundai Motors

Babasabpatilfreepptmba.com

Page 65

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Mahindra Renault Logan (Petrol and Diesel versions) Maruti Zen Estilo (Only Petrol Version) Mahindra & Mahindra Co.

Maruti WagonR (Only Petrol Version)

Maruti Suzuki India Ltd.

Maruti Esteem (Petrol and Diesel versions) Maruti Baleno (Petrol and Diesel versions)

Maruti Suzuki India Ltd.

Maruti Suzuki India Ltd.

Babasabpatilfreepptmba.com

Page 66

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Maruti Swift (Petrol and Diesel versions) Maruti Suzuki India Ltd.

Maruti Suzuki SX4 (Petrol and Diesel versions) Maruti Suzuki India Ltd.

Opel Astra (Petrol and Diesel versions)

Genral motors

Opel Corsa (Petrol and Diesel versions)

Genral motors

San strom (Only petrol version)

San Motors

Babasabpatilfreepptmba.com

Page 67

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Babasabpatilfreepptmba.com

Page 68

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS PRODUCT LINE SEGMENT Product: Product is anything that can be offered to a market to a market to satisfy a want or need. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. Product Line: A group of products withn a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall withn given price ranges. A product line may be composed of different brands or a single family brand or individual brand that has been line extended. Example: Life Insurance In offering a product line companies normally develop a basic platform and modules that can be added to meet different customer requirements. Car manufacturers around a basic platform. Homebuilders show a model home to which additional features can be added. This modular enables the company to offer variety while lowering production costs. Product line managers need to know the sales and profits of each item in their line in order to determine whish item to build, maintain, harvest or divest. They also need to understant each product lines market profile. Product Line Management: Product line management is about controlling the definition and release planning for a product line. Market requirements, development capacities, strategic corporate decisions are all harmonized, and the product's chances on the market are evaluated in a business plan. Product line management is something we at PSE have come to learn how to do in practice with our own products and a number of our clients' products. We are fully familiar with the complex interdependencies between the 4 Ps in marketing product, price, place, and

Babasabpatilfreepptmba.com

Page 69

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS promotion. And, especially when it comes to product and communication policies, we are able to use our market knowledge to maximal effect. In this study, we investigate the effects of state dependence on market structure using scanner panel data, specifically addressing the four issues raised above. In other words, we seek to understand market structure conceptualized in terms of pairwise product-level competition using a automobile choice model accommodating four effects of known importance: (1) marketing mix variables, (2) Inertia and/or variety-seeking (3) unobserved heterogeneity (4) product attributes. Given these objectives, we start from the parsimonious stochastic choice mode is modifying it to accommodate marketing variables and inertia. We then allow for unobserved heterogeneity across households and, lastly, operationalize inter-product similarity to be a function of observed product attributes. Two key findings emerging from a formal analysis of two packaged goods categories are summarized below. Accommodating the effects of inertia, marketing variables and unobserved heterogeneity is critical to obtaining correct inferences about market structure, particularly so when available scanner panel data offer no evidence of variety-seeking behavior. For example, a model which allows for variety-seeking, but which ignores the other three effects, may incorrectly conclude that variety-seeking drives market structure even when it does not. When product positions are characterized in terms of inter-product similarity measures, operational-zing these measures in terms of observed product attributes (information that is generally available in existing scanner panel data) not only gives excellent face validity to the model, but also fits the data better than a model which ignores such attribute information in lieu of unobserved attributes. Babasabpatilfreepptmba.com Page 70

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS A previous study that has investigated market structure after allowing for variety-seeking and the four additional effects accounted for here (inertia, marketing variables, unobserved heterogeneity and product attributes). Our study differs, however operationalizes inter product similarities (that drive state dependence) along unobservable, rather than observable, product attributes. 2. To the extent that practitioners wish to understand market structure in terms of attributes that they incorporate into, and use as the basis of both differentiating and advertising, their products, a legitimate managerial question concerns whether important effects due to observable attributes indeed exist. A natural question that would then arise is whether one can compare the results from the proposed

Babasabpatilfreepptmba.com

Page 71

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS DIFFERENTATION STRATGIES EMPLOYED BY AUTOMAKER MIDSEGMENT CARS : In marketing, differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings.In Simple words Products are differentiated when the products of different companies are not perfect substitutes -- instead, "every company has a monopoly of its own product." Nevertheless, companies may compete by changing the characteristics of the product they sell. The idea is not necessarily to make a better product than the competitor, just different -- to appeal to a different "market niche." Differentiation is a source of competitive advantage. Although research in a niche market may result in changing your product in order to improve differentiation, the changes themselves are not differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of your product and create a sense of value. Marketing textbooks are firm on the point that any differentiation must be valued by buyers . The term unique selling proposition refers to advertising to communicate a differentiate their product. The brand differences are usually minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it could. Differentiation is due to buyers perceiving a difference, hence causes of differentiation may be functional aspects of the product or service, how it is distributed and marketed, or who buys it. The major sources of product differentiation are as follows. I.) Differences in quality which are usually accompanied by differences in price Competition in Quality- In some industries, there is a very hot competition to introduce a product that is superior to rival products. This form of competition has a good reputation but it can certainly be overdone and may be overrated. Babasabpatilfreepptmba.com Page 72

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Competition in quality lends itself to "horse races," in which only the winner gets any profit at all, and recent research indicates that these "winner take all" competitions tend to lead to overinvestment and waste of resources. The constant upgrading of computer software may be an example. We will take a closer look at "horse race" competition in a later chapter. In any event, to much of a good thing that is, spending too much on a good thing can always change it into a bad thing. On the other hand, quality improvement makes consumers better off in an obvious and probably pretty major way, so competition in quality is at worst a mixed bag. Many different techniques and concepts have evolved to improve product or service quality, including SPC, Zero Defects, Six Sigma, Malcolm Baldrige National Quality Award, quality circles, TQM, Theory of Constraints (TOC),Quality Management Systems (ISO 9000 and others) and continuous improvement. The meaning for the term quality has developed over time. Various interpretations are given below: 1. ISO 9000 - "Degree to which a set of inherent characteristic fulfills requirements" 2. Philip B. Crosby in the 1980s- "Conformance to requirements". The difficulty with this is that the requirements may not fully represent customer expectations; Crosby treats this as a separate problem. 3. (Joseph M. Juran).- "Fitness for use". Fitness is defined by the customer. 4. (Noriaki Kano and others)- A two-dimensional model of quality. The quality has two dimensions: "must-be quality" and "attractive quality". The former is near to the "fitness for use" and the latter is what the customer would love, but has not yet thought about. Supporters characterize this model more succinctly as: "Products and services that meet or exceed customers' expectations". 5. Gerald M. Weinberg- "Value to some person". 6. W. Edwards Deming- "Quality and the Required Style of Management" . "Costs go down and productivity goes up, as improvement of quality is accomplished by better management of design, engineering, testing and by improvement of Babasabpatilfreepptmba.com Page 73

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS processes. Better quality at lower price has a chance to capture a market. Cutting costs without improvement of quality is futile." 7. (Genichi Taguchi). Taguchi's definition of quality is based on a more comprehensive view of the production system, and he relates Quality (or, more precisely, the lack of it) to "The loss a product imposes on society after it is shipped". II.)Differences in functional features or design Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object . Product Designers conceptualize and evaluate ideas, making them tangible through products in a more systematic approach. The role of a product designer encompasses many characteristics of the marketing manager, product manager, industrial designer and design engineer.

The term is sometimes confused with industrial design, which defines the field of a broader spectrum of design activities, such as service design, systems design, interaction design as well as product design The role of the product designer combines art, science and technology to create tangible three-dimensional goods. This evolving role has been facilitated by digital tools that allow designers to communicate, visualize and analyze ideas in a way that would have taken greater manpower in the past. III.) Ignorance of buyers regarding the essential characteristics and qualities of goods they are purchasing IV.) Sales promotion activities of sellers and, in particular, advertising Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix. The other three elements are product management, pricing, and distribution.

Babasabpatilfreepptmba.com

Page 74

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Product information : Any product that provides information that the purchaser is seeking. It could be a hardbound book, ebook, audio, video or combination of these. Brand awareness: The likelihood that consumers recognize the existence and availability of a company's product or service. Creating brand awareness is one of the key steps in promoting a product. Brand awareness is an important way of promoting commodity-related products. This is because for these products, there are very few factors that differentiate one product from its competitors. Therefore, the product that maintains the highest brand awareness compared to its competitors will usually get the most sales. Promotion is generally sub-divided in to the many parts:

Above the line promotion: Promotion in the media e.g. TV, radio, newspapers, Internet in which the advertiser pays an advertising agency to place the ad .

Product Pricing: Definition: To establish a selling price for a product Pricing Basics: To price products, you need to get familiar with pricing structures, especially the difference between margin and markup. As mentioned, every product must be priced to cover its production or wholesale cost, freight charges, a proportionate share of overhead (fixed and variable operating expenses), and a reasonable profit. Factors such as high overhead (particularly when renting in prime mall or shopping center locations), unpredictable insurance rates, shrinkage (shoplifting, employee or other theft, shippers' mistakes),

Babasabpatilfreepptmba.com

Page 75

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS seasonality, shifts in wholesale or raw material, increases in product costs and freight expenses, and sales or discounts will all affect the final pricing. All prices must cover costs and profits. The most effective way to lower prices is to lower costs. Review prices frequently to assure that they reflect the dynamics of cost, market demand, response to the competition, and profit objectives. Prices must be established to assure sales.

Before setting a price for your product, you have to know the costs of running your business. If the price for your product or service doesn't cover costs, your cash flow will be cumulatively negative, you'll exhaust your financial resources, and your business will ultimately fail. To determine how much it costs to run your business, include property and/or equipment leases, loan repayments, inventory, utilities, financing costs, and salaries/wages/commissions. Don't forget to add the costs of markdowns, shortages, damaged merchandise, employee discounts, cost of goods sold, and desired profits to your list of operating expenses. Most important is to add profit in your calculation of costs. Treat profit as a fixed cost, like a loan payment or payroll, since none of us is in business to break even. Because pricing decisions require time and market research, the strategy of many business owners is to set prices once and "hope for the best." However, such a policy risks profits that are elusive or not as high as they could be. When is the right time to review your prices, Do so if:

You introduce a new product or product line; Your costs change; You decide to enter a new market; Your competitors change their prices; Page 76

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

The economy experiences either inflation or recession; Your sales strategy changes; or Your customers are making more money because of your product or service.

a.) Informational Advertising : In a P-competitive market, there is no advertising, because there is no need to advertise -the firm can sell its profit-maximizing output at the market price.But in the real world, advertising is a very major competitive strategy. When the aim of the advertising is to give people information about the availability, characteristics and prices of goods, we call it "informational advertising." This sort of advertising increases the consumer's range of choice and may improve the quality of the decisions consumers make. It can also contribute to the effectiveness of price competition, so (in some markets) it may complement price competition and bring the market closer to the supply-and-demand outcome than it otherwise would be. The purpose of cutting your price is to attract more customers, after all. If nobody knows about the price cut, it will be less effective, so why bother? Conversely, an advertised price cut can be the most powerful form of price competition. Some "professional ethics" laws have prohibited physicians and lawyers from advertising, on the grounds that such advertising would be inconsistent with professionalism. In recent years, as part of the trend toward increased reliance on markets in modern economies, those laws have been repealed in some jurisdictions. The repeal does seem to lead to increased price competition. All the same, like other forms of nonprice competition, economists regard informational advertising as something of a mixed bag:

It gives people information they might lack, which is good, but It can be overdone, spending too much on advertising and driving prices up, which is not so good.

Babasabpatilfreepptmba.com

Page 77

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS b.) Persuasive Advertising: The purpose of persuasive advertising is to shift the utility functions of the customers, thus to shift their demand curves in favor of the good being advertised. Since we judge consumers' benefits in terms of given consumer utility functions, it is hard to say if consumers benefit or lose -- so persuasive advertising looks like spending money without making consumers any better off, and many economists regard that as a negative. We expect that both forms of advertising will be especially common in oligopolies and whenever products are differentiated, as in monopolistic competition. Monopolies, too, may find it profitable to advertise.

Below the line promotion. All other promotion. Much of this is intended to be subtle enough that the consumer is unaware that promotion is taking place. E.g. sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, trade shows

The specification of these four variables creates a promotional mix or promotional plan. A promotional mix specifies how much attention to pay to each of the four subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. V.) Differences in availability (e.g. timing and location). The objective of differentiation is to develop a position that potential customers see as unique. Differentiation primarily impacts performance through reducing directness of competition: As the product becomes more different, categorization becomes more difficult and hence draws fewer comparisons with its competition. A successful differentiation strategy will move your product from competing based primarily on price to competing on non-price factors such as product characteristics, distribution strategy, or promotional variables. Babasabpatilfreepptmba.com Page 78

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Most people would say that the implication of differentiation is the possibility of charging a price premium; however, this is a gross simplification. If customers value the firm's offer, they will be less sensitive to aspects of competing offers; price may not be one of these aspects. Differentiation makes customers in a given segment have a lower sensitivity to other features (non-price) of the product . Further applications: Differentiation of product explains and resolves some other paradoxical results that obtain when products are assumed to be perfect substitutes. The Diamond Paradox holds that the monopoly price prevails in the presence of small search costs even with many firms. Suppose consumers expected the monopoly price to be charged everywhere. Any firm pricing lower can raise its price and lose no consumers: a lower price attracts no consumers from other firms because a lower price is not expected. Any (rationally expected) price below the monopoly one is not an equilibrium because a firm can raise its price by an amount up to the search cost without losing any consumer who encounters it first. There is thus a striking discontinuity between the Bertrand and Diamond paradoxes as the search costs go from zero to a small positive value. Product differentiation smoothes the transition by allowing the consumers to shop for attributes other than purely price. A consumer may indeed find the price she expected at the first store sampled but still search further if she expects to find a better match. Her continued searching effectively brings firms into competition with each other. Firms therefore reduce prices to retain consumers who search for better matches. The existence of a (pure strategy) price equilibrium in the original Hotelling model can be restored (through restoring profit function quasiconcavity) if there is sufficient nonlocational product differentiation (through idiosyncratic preferences for products). This mechanism can restore the Principle of Minimum Differentiation in locations, even with endogenous prices. The standard Bertrand-Edgeworth pricing problem treats capacity constraints and, with homogenous products, has only mixed strategy equilibria. With sufficient product heterogeneity, pure strategy equilibria re-emerge since the benefits from undercutting are Babasabpatilfreepptmba.com Page 79

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS reduced. Likewise, standard models of positive network externalities typically exhibit multiple equilibria or no pure strategy equilibria. Unique pure strategy equilibria result with enough differentiation of products. In International Trade, product differentiation explains the empirical paradox of intraindustry trade; much bilateral trade is in the same product class. Furthermore, product differentiation is a source of gains from trade (in addition to the traditional comparative advantage in production and factor difference reasons) because of access to larger markets supporting more variety. Endogenous growth theory relies on product differentiation (typically with CES preferences or quality ladders based on vertical differentiation) to rationalize continued Research and Development of new varieties. It is also a predominant feature as an agglomerative force in recent models of New Economic Geography. In macroeconomics, product differentiation models have been used to introduce imperfect competition. This is useful for providing micro-underpinnings to New Keynesian analysis. For example, in conjunction with menu costs to switching prices, it gives rise to real effects to monetary policy.

Babasabpatilfreepptmba.com

Page 80

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Tatas mid segment car Tata indica: Mid Size cars: A Mid Size car is referred to as an automobile with a size between that of compact full size cars. The price range of mid size cars lies between Rs 3 to 8 Lakhs. The mid size cars have the capacity to carry 4 passengers , 2 adults and 2 childrens. The credit of manufacturing of these cars goes to companies like- Fiat India, Ford, General Motors, Hindustan Motors, Hyundai motors, Maruti Udyog, San Motors and Tata Motors. While the companies like- Ford, Hyundai, General Motors and Mahindra & Mahindra are yet to launch their models under this segment. This model basically target executive class. Year 1995- In September 1995, Ratan Tata, Chairman of Tata Motors, had a dream. A dream he believed he shared with every Indian. "We'll have a car with the Zen's size, the Ambassador's internal dimensions, and the price of a Maruti 800. It took an Indian to understand that the average (and not large) Indian family consisted of five members, that a rupee saved was a rupee earned, and that Indian highways called for a really sturdy car body. Differentiation Strategies applied by Tata motors: About indica car- Tata indica is the fulfillment of vision to develop and produce an INDIAN car that would be as contemporary and modern as the worlds best in its class, would set the standards for interior space and value for money. The tata indica has been designed with inputs from leading Italian design house and has been periodically updated with exterior and interior facilities. The tata indica is available in both diesel and petrol engine version.

Babasabpatilfreepptmba.com

Page 81

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Year 2006- Tata Motors introduces The Xeta The Cure For The Common Car. Its 1.4 litre extra fuel Efficient Torque Advantage (XETA) petrol engine delivers a frugal fuel consumption at 14 Kmpl*. Without any compromise in power and torque, which at 70 PS and 12.4 kgm, make every drive a thrill. Year 2005- In November 2005 Indica V2 Turbo was launched.It is the only car in the B segment to offer a Turbo charger. The car features a Turbo diesel engine that delivers an improved top speed and an enhanced output of 68PS @ 4500 rpm. Year 2004- In November 2005 Indica V2 Turbo was launched.It is the only car in the B segment to offer a Turbo charger. The car features a Turbo diesel engine that delivers an improved top speed and an enhanced output of 68PS @ 4500 rpm. Year 2002- Year 2002 saw the Indica V2 complying with the first offset crash test. Major improvements were also made to the air conditioning system and braking mechanisms, as well as the body reinforcements. Year 2001- In 2001, the Indica V2 became the fastest-selling automobile in Indian history when it chalked sales of 100,000 in less than 18 months. February 2001 saw the next stage in the evolution of the Indica V2. A car that embodied everything the Indica V2 had with several added features like a SuperDrive Engine, BlockShock Absorbers, a SmoothRide Suspension, EasyShift Gears and WideTread Tyres. It married the power and comfort of a large car with the easy maneouverability of a small one. Taking off on the success of the Indica V2 diesel, the Indica V2 Petrol was launched in September 2001. The state-of-theart technology combined the features of the Indica V2 Diesel with the smoothness of petrol Year 1998- In December 1998, the dream came true. And it was only fitting that a car built by Indians for Indians was called Indica. It was the first car that seriously took all Indian sensibilities including those on safety into consideration. The car was tested at Tata Motors crash test facility (Indias first and only), which has been accredited by international agencies.

Babasabpatilfreepptmba.com

Page 82

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS The TATA Indica is the only Indian mid-segment car which has more than Four models and withn four models many versions are available: Style: 1 BODy coloured bumper 2 Body colourd rear view mirrors and door handels. 3. smiling grills 4. adjustable head restraints for front seats 5 high mounted bison tail lamp cluster. 6. rear spoiler. 7 New cubic printed console. 8 stylish upholstery 9 soft feel four spoke steering wheel 10 alloy wheels Safety: 1 Abs with ebd(electronic brake-force distribution) 2 Airbags- driver and passenger 3 Front passenger airbag deactivation 4 Remote central locking 5 Anti-theft device-immobilizer, ignition-cum-steering lock. 6 shatter resistant windshield glass 7 front and rear fog lamps 8 rear wiper with wash/wipe and defogger 9 child safety lock on rear doors 10 collapsible steering column

Babasabpatilfreepptmba.com

Page 83

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS convinence: 1. 2. 3. 4. 5. power windows, front and rear spot reading lamps and cabin lamps remote release for fuel lid latch and tailgate latch vanity mirrors on sun-visor for driver and co-driver. internal antenna

Comfort: 1. 2. 3. power steering air-conditioning, heating and demisting independent front and rear suspension for enchanced ride comfort

colures: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. mint white arctic silver carbon black salsa red odyssey blue mica grey Burgundy royale sparkling gold pastel green cosmic blue

Babasabpatilfreepptmba.com

Page 84

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Models Tata Indica V2 Xeta Starting Price From in Rs 289446- 319450

Tata Indicab

352931, 345222

Tata Indica V2

391340- 411776

Tata Indica V2 Turbo

430289-530140

Technical specification: 1.) Tata Indica V2 Xeta: Versions Tata Indica V2 Xeta 1.2 GL - BS III 1193 cc, Petrol, Manual transmission, 5 seater Tata Indica V2 Xeta 1.2 GLE - BS III 1193 cc, Petrol, Manual transmission, 5 seater Tata Indica V2 Xeta 1.2 GLS - BS III 1193 cc, Petrol, Manual transmission, 5 seater 340280 319450 Showroom Price IN Rs.

2,89,446

Babasabpatilfreepptmba.com

Page 85

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Tata Indica V2 Xeta 1.2 GLG - BS III 365896 1193 cc, Petrol, Manual transmission, 5 seater Tata Indica V2 Xeta GLX - BS III 1396 cc, Petrol, Manual transmission, 5 410841 seater

Specs Overall Length Overall Width Overall Height Kerb Weight Mileage (Overall) Seating Capacity (person) No of Doors Displacement (cc) Power Torque Transmission Type Gears/Speeds Minimum Turning Radius Tyres

Availability 3675 mm 1665 mm 1485 mm 995 kg 11.9 km/liter 5 person 5 door 1396 cc 70 PS @ 4800 rpm 122 Nm @ 2600 rpm Manual 5 Gears 4.9 meter 165 x 65 R13 Radial

2.) Tata Indicab: Versions Tata Indicab DLE- BS III 1405 cc, Diesel, Manual transmission, 5 seater Tata Indicab DLS - BS III 1405 cc, Diesel, Manual transmission, 5 seater Babasabpatilfreepptmba.com Page 86 382909 402495 Showroom Price

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Specs Overall Length Overall Width Overall Height Kerb Weight Mileage (Overall) Seating Capacity (person) No of Doors Displacement (cc) Power Torque Transmission Type Gears/Speeds Minimum Turning Radius Tyres

Availability 3675 mm 1665 mm 1485 mm 995 kg 13.6 km/liter 5 person 5 door 1405 cc 53 PS @ 5500 rpm 85 Nm @ 2500 rpm Manual 5 Gears 4.9 meter 165/65R13 Radial

3.) Tata Indica V2: Versions Tata Indica V2 DLE-BS III 1405 cc, Diesel, Manual transmission, 5 seater Tata Indica V2 DLS-BS III 1405 cc, Diesel, Manual transmission, 5 seater Tata Indica V2 DLG DiCOR - BS III 1396 cc, Diesel, Manual transmission, 5 seater Showroom Price

391340

4111776

455330

Babasabpatilfreepptmba.com

Page 87

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Specs Overall Length Overall Width Overall Height Kerb Weight Mileage (Overall) Seating Capacity (person) Displacement (cc) Power Torque Transmission Type Gears/Speeds Minimum Turning Radius

Availability 3675 mm 1665 mm 1485 mm 995 kg 13.6 km/liter 5 person 1405 cc 53 PS @ 5500 rpm 85 Nm @ 2500 rpm Manual 5 Gears 4.9 meter

4.) Tata Indica V2 Turbo : Versions Tata Indica V2 Turbo DLS 1405 cc, Diesel, Manual transmission, 5 seater Tata Indica V2 Turbo DLG 1405 cc, Diesel, Manual transmission, 5 seater Tata Indica V2 Turbo DLX 1405 cc, Diesel, Manual transmission, 5 seater Tata Indica V2 Turbo DLX - ABS & Airbags 1405 cc, Diesel, Manual transmission, 5 seater 430289 Showroom Price

445458

465533

530140

Specs Babasabpatilfreepptmba.com

Availability Page 88

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Overall Length Overall Width Overall Height Kerb Weight Mileage (Overall) Seating Capacity (person) Displacement (cc) Power Torque Transmission Type 3660 mm 1625 mm 1485 mm 1050 kg 12.1 km/liter 5 person 1405 cc 68 PS @ 4500 rpm 130 Nm @ 2500 rpm Manual

The services, attractive discounts and special offers: Gold club membership- Excellence boundless, over time, becomes a habit. It is not something one aspires for, but rather the way one lives, and thinks. And if you are a Tata Motors customer, it is the way you drive. Having understood you passion for excellence, we at Tata Motors, would like to offer you the Tata Motors Gold Club membership plan, for all your servicing needs and requirements. It offers you the following: This privileged membership offers you a bouquet of free services, attractive discounts and special offers, over a 2 year membership period. You shall be entitled for priority service at the Dealer / Tata Authorised Service Centre workshop, where you have registered for the membership. No prior appointment shall be required . Gold Club membership and avail of the special price of Rs 499/- as against the regular price of Rs 999/- . And you can ensure quality service for your car for a full 2 year.

Babasabpatilfreepptmba.com

Page 89

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Tata Provides Protection service:

It has been objective to introduce quality products and treatments which you can avail off during you vehicle ownership period. Towards fulfilling these objective, we are pleased to inform you that Tata have tied up with M/s Eftec Shroff (Dinitrol), M/s Opulent Waxoyl, M/s 3M India Ltd, M/s Wrth for Anti Rust / Sound Deadening / Engine Waxing treatment. Anti Rust Treatments shall protect your car from Corrosion thereby increasing safety during your handling of the car and also increasing the life of the car. Tata are giving below some frequently asked questions, which you may have when going in for Anti Rust Treatment. Under-coatings:

Under-coatings are chemical compounds usually applied to the undercarriage of a

motor vehicle, hence the name

Under-coatings may also be applied to other areas such as the trunk, wheel wells, Areas that shall be covered under Anti Rust treatments:

etc .

Babasabpatilfreepptmba.com

Page 90

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Bonnet

Front wings

Rear Wings

Rear Wings

Boot Lid

Door

Door Babasabpatilfreepptmba.com

Sills Page 91

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Under Body, Side Members and Cross Members

Anti Rust Treatment during the service at low Price: Vehicle Tata Indica Tata Indica Tata Indica Tata Indigo / Marina Tata Indigo / Marina Tata Indigo / Marina Tata Sumo / Safari Tata Sumo / Safari Other BenefitsUpto 60 months warranty & upto 10 free checkups available for Underbody Treatments. Sound Deadening PadsDoor vibration deadeners - These pads when stuck on the insides of the sheet metal increase sheet metal rigidity, reduce vibrations and increase riding comfort. Engine Wax Treatment: Treatment type Full Body Anti rust treatment Only underbody treatment Internal Panel Protection Full Body Anti rust treatment Only underbody treatment Internal Panel Protection Full Body Anti rust treatment Only underbody treatment Customer Price 3750 2530 1530 4050 3050 1800 4500 3050

Babasabpatilfreepptmba.com

Page 92

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Engine Wax is a beige coloured transparent lacquer coating on the engine compartment. Its features are:

Corrosion Prevention for the Engine compartment Neat, Clean and New Look to Engine compartment No effect on MPFI vehicles Engine wax can withstand upto 200 degrees temp No need of cleaning the engine compartment with diesel once engine wax is sprayed

Vehical Interior and Exterior enrichmentTata has been introduce quality products and treatments which you can avail off during your vehicle ownership period. Towards fulfilling these objectives, we are pleased to inform you that Tata has tied up with M/s 3M India Ltd, M/s Opulent Waxoyl & M/s Wrth for Vehicle Interior / Exterior Enrichment programs. These treatments shall make your car look new and also shall protect your car paint from getting faded. It shall protect your car interior like seats from stains which may happen on account of spill and give a clean look to your vehicle interior. We are giving below some frequently asked questions which you may have when going in for vehicle interior / exterior enrichment program.The treatment involves cleaning and dressing of ALL parts of the exposed interiors. Tata Empowering Programe: Tatas would like to assure you that it is now our never-ending responsibility and endeavour to ensure customers expectations are met during our long association with us. As part of our initiative of building close relationship with customer and giving them an opportunity to avail maximum benefits whenever they visit our authorized workshops, we are delighted to welcome you to Tata Empower Program.

Babasabpatilfreepptmba.com

Page 93

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Tata Empower Program which shall help customer to understand the benefits of joining this program.

Driving tips through empower programe for Better fuel economy Driving under Adverse conditions Driving Safety tips TATA motors has differentiated his compotators by participating in the International auto shows: 1.) Geneva Motor show- 1999, 2003, 2005 2006, 2007 and 2008 2.) Auto Africa Motor Show 2004 3.) Italy Bologna Motor Show 2005 Geneva Motor show- 2008 Tata Motors today presented at the 78th Geneva Motor Show the Tata Nano, the Peoples Car, and three other vehicles, the new generation Indica, the new Safari DICOR 2.2 VTT and the Xenon. The Nano will first be launched in India later in 2008. The new generation Indica will be launched in the latter part of 2008 in international markets. The Safari DICOR 2.2 VTT and the Xenon have just been introduced in select markets. Speaking on the occasion at the Geneva Motor Show, Mr. Ratan N. Tata, Chairman of the Tata Group and Tata Motors said, 1998, when we displayed the Indica at Geneva, marked our entry into passenger cars. The last decade has been a period of significant development in Tata Motors capabilities. The display of the Nano, which is a first for the global automobile industry, and the new generation Indica signifies this in-house progression. Babasabpatilfreepptmba.com Page 94

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Geneva Motor Show 2007: TATA Motors, India's largest automobile company, and the only Indian automobile company to participate in the Geneva Auto Show regularly for the last 10 years, today unveiled the TATA Elegante, a sedan based on an all-new platform. Speaking on the occasion, Mr. Ratan N. TATA, Chairman of the TATA Group, said, "This is the 10th year of our participation in the prestigious Geneva Auto Show, since 1998 when we unveiled the TATA Indica. In the past decade, TATA Motors has developed a portfolio of cars, enriched with contemporary features. Several of the design cues of the TATA Elegante are incorporated in the forthcoming generation of TATA Indica and TATA Indigo cars." The TATA Elegante, larger than the current TATA Indigo Sedan, is conceptualized to incorporate 4 cylinder transverse petrol and diesel engines from 1.4 liters through to 2 liters and a compact V6 petrol power unit. Common rail direct injection turbo diesel engines with variable valve timing and capabilities to comply with Euro V emissions norms will also be available. Power varies from 90 to 200 PS with torque of up to 280 Nm. Transmission options include 6 speed manual and automatic gearboxes. Besides meeting all European safety, crash-worthiness and emission standards, the TATA Elegante's features include satellite navigation system, cruise control, integrated blue tooth

Babasabpatilfreepptmba.com

Page 95

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS compatibility, heated mirrors, rain sensor, front and rear parking sensors, and many other contemporary features. TATA is also displaying a redesigned TATA Pick Up which is fitted with a 2.2 liter 140 PS common rail direct injection Euro IV compliant diesel engine. With superior styling and comfort features as well as safety features such as ABS and airbags, this is a versatile pick up truck suited for business as well as leisure applications. It is offered in single cabin, double cabin and space cabin versions in 4x2 as well as 4x4 configurations. Superior fuel mileage and better payload capacity make it a profitable choice for commercial and personal usage. While continuing to be manufactured in India, the TATA Pick Up will also be manufactured in Thailand and will be marketed in TATA's existing European, Asean and African markets. TATA and the Fiat Group are also actively exploring the manufacture and marketing of this vehicle in Latin America.. Also on display, are the latest versions of TATA Indica hatchback, the TATA Indigo SW station wagon and the TATA Safari DiCOR sports utility vehicle. The TATA range has been selling in select European markets since 1993 and has continued to gain increasing response year after year.

Moscow Motor Show 2006-

Babasabpatilfreepptmba.com

Page 96

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Tata Motors, India's largest automobile company, plans to enter the Russian automobile Tata Motors, India's largest automobile company, plans to enter the Russian automobile market with a diverse range of small, medium and heavy trucks and buses. These products, designed specifically to cater to the Russian market, will be introduced over the next three years. Initially, the key offering will be the Light Commercial Vehicle (LCV) range, where Tata Motors has a strong presence in international markets like South Africa and the Middle East. For the first time, at the Moscow Motor Show this year, Tata Motors is also showcasing its passenger car range. Tata Motors hopes to sell about 6000 commercial vehicle units/year, over the next three years, and thereafter increase growth through new product introductions. The key focus markets for the company will be Moscow, St. Petersburg, Svedolosk and Volgograd. Mr P G Shankar, Head - International Business, Commercial Vehicle Business Unit, Tata Motors, says, "Russia is a focus market in Tata Motors' global growth strategy. We have decided to enter Russia not just to sell our vehicles, but also to grow with our customers by offering the best value proposition, through both products and services. We are also exploring opportunities for investments in product development, marketing and even manufacturing. We have a long term vision and Tata Motors is here to stay in Russia." Mr Divyendu Kumar, Head - International Business, Passenger Car Business Unit, Tata Motors, says, "Russia is a market of strategic importance to Tata Motors. We are actively exploring the firming up of our plans to address this market not just by selling our products here but also by participating in local industrial and economic enterprises on a long term basis. For the first time at the Show, Tata Motors is showcasing its passenger car range comprising the Indica Hatchback, Indigo Sedan and Indigo Station Wagon. Apart from being among the largest selling passenger car models in India, these models are wellestablished in chosen overseas markets and are well on the way to establishing themselves in European countries as well.''

Babasabpatilfreepptmba.com

Page 97

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Also on display are two concept cars - Tata Crossover, a 'crossover' vehicle concept, and Tata Cliff rider, a Multi-Utility Lifestyle Vehicle' concept. In commercial vehicles, Tata Motors is displaying the diversity and range of its products. On display are the LPT 613 and LPT 1618 trucks, the Telco line pick-up and the Novus tractor , which is being displayed for the first time in Russia. The vehicles Tata Motors currently sells in Russia are, LPT 613 trucks, LP 613 buses and Telco line pickups, which are supplied in SKD (Semi Knocked Down) and CKD (Completely Knocked Down) condition. Tata vehicles are sold through its three distributors -- trucks are sold through Automobile & Motors of Ural (Amur) - Ekaterinburg; pick-ups through Samotlar -NN - Nizhniy Novgorod; and buses through Volzhanin - Vogograd and Samotlar - NN.

Babasabpatilfreepptmba.com

Page 98

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Babasabpatilfreepptmba.com

Page 99

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

The following factors that effect on consumer decision making.


Model:

The model is the outer look of the vehicle, which plays a vital role in consumers decision making while buying the car. Thus there is a alteration in the outer look of model at every particular point of time. Price:

The price of the car very much matters while consumers decision making while buying the car. It must be such a way that it should give the better then its compotators. Thus the price must be competitive within the particular segment. Delivery period:

The delivery period is the delivery of the vehicle from the day of booking the vehicle. In the present days customers wont wait for many days for the delivery thus there is competition like on time delivery. Vehicle Life:

Vehicle life is very important , it depends upon the type of the metal used for the construction of the vehicle body, which should be resistant to the rainy season( anti rust coating). Vehicle power:

Vehicle power is technically known as the engines displacement (cc), power or torque , which should be powerful to carry 5 people with max speed of of 120kmph. Babasabpatilfreepptmba.com Page 100

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

After sales service:

The services given by the dealers must be very convincing to the customers and it should give the best free services by the automobile company. It should provide online help service to customers i.e. helping its customers to contact near by service station if their vehicle gives any problem in the unknown location. Colures:

If the availability vehicle colures are more then the customer diversity towards other company is less. Because there are some customers who change their brand because of the non-availability of the vehicle colures is less. Fuel consumption:

Fuel consumption the mileage of the vehicle for every liter of petrol or diesel. Now days customers give more stress for the fuel consumption because of the continuous increase in the price of petrol and diesel. Safety:

The safety features like are inserted after testing all safety tests of the vehicle. The customers are very keen about the safety features of cars. If required safety features are not available in the vehicles then the customers may move to imported higher end Vehicle. Advertisement:

The Advertisement is the easiest way to grab the customers attention and to help to know about product feature. Which would help the customer in buying decisions.

Babasabpatilfreepptmba.com

Page 101

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Schemes & offers:

The Company and dealers give some schemes & offers to customers to attract more customers. Schemes and offers like extension of the warranty period, Price discount, free insurance and accessories. Warranty extension: Warranty extension is the extension of the warranty after end of warranty period. The warranty extension can be extended for another one year or two years, which cover only technical and non technical minor parts of the vehicle. Exchange offers:

Exchange offer is to give your old car of that company and get discount on your new car. The old car estimated its price based on its model and condition of the vehicle. Thus Exchange offer is one of the most effective offers by the company. 0 % car finance:

This means finance is provided by automobile company itself at 0 % interest on its vehicle. This helps the consumer to afford the vehicle with less expense. Other Factors that influence the on consumer decision making: Personal factors Social factors

Babasabpatilfreepptmba.com

Page 102

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

ANALYSIS

Do you own a car? Frequency 75 25 100 Percent 75.0 25.0 100.0 Valid Percent 75.0 25.0 100.0 Cumulative Percent 75.0 100.0

Valid

Yes No Total

Do you own a car?


80 75

60

40

Frequency

20

25

0 Yes No

Do you own a car?

Out of total sample taken 75 % respondents own the car and 25% of the respondents do not own the car.

Babasabpatilfreepptmba.com

Page 103

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

Do you intend to purchase another car? Frequency 66 9 75 25 100 Percent 66.0 9.0 75.0 25.0 100.0 Valid Percent 88.0 12.0 100.0 Cumulative Percent 88.0 100.0

Valid

Missing Total

Yes No Total System

Do you intend to purchase another car?


70 66 60 50 40 30 20

Frequency

10 9 0 Yes No

Do you intend to purchase another car?

Out of total sample taken 66% respondents are interested to buy another car and nearly 9% of the respondents do not indented to purchase another car.

Babasabpatilfreepptmba.com

Page 104

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS
If no, do you intend to purchase a car? Frequency 25 75 100 Percent 25.0 75.0 100.0 Valid Percent 100.0 Cumulative Percent 100.0

Valid Missing Total

Yes System

If no, do you intend to purchase a car?


30

25 20

10

Frequency

0 Yes

If no, do you intend to purchase a car?

Out of total sample taken of which 25% of the do not own the car and hence all the 25% people are interested to buy the car.

Babasabpatilfreepptmba.com

Page 105

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS
If yes, what parameter do you consider before making purchase decision? Frequency 8 24 25 34 9 100 Percent 8.0 24.0 25.0 34.0 9.0 100.0 Valid Percent 8.0 24.0 25.0 34.0 9.0 100.0 Cumulative Percent 8.0 32.0 57.0 91.0 100.0

Valid

Brand price Vehical Power Fuel Consumption Safety Total

If yes, what parameter do you consider before making purchase decision?


40

34 30

24 20

25

Frequency

10 8 0 Brand price Vehical Power Fuel Consumption Safety 9

If yes, what parameter do you consider before making purchase decision?

Among the car 8% of the people are influenced by Brand image of the car, 24% are influenced by vehicle power, 25% are influenced by safety features of the car, 34% are influenced by the price of vehicle and remaining 9% are of the people are concerned of fuel consumption of the vehicle.

Babasabpatilfreepptmba.com

Page 106

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS
To What extent do the following persons influence you in making purchase? Frequency Mechanic 26 Family 25 Friends 17 Advertisement 16 Schemes & Offers 16 Total 100 Percent 26.0 25.0 17.0 16.0 16.0 100.0 Valid Percent 26.0 25.0 17.0 16.0 16.0 100.0 Cumulative Percent 26.0 51.0 68.0 84.0 100.0

Valid

To What extent do the following persons influence you in making purchase


30

26

25

20 17

16

16

10

Frequency

0 Mechanic Family Friends Schemes & Offers Advertisement

To What extent do the following persons influence you in making purchase

Among the car buyers nearly 26% of the people are influenced by the Mechanics and 25% by friends, 17% by the schemes & offers, 16% by family and 16% by the advertisement.

Babasabpatilfreepptmba.com

Page 107

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS
Do O ffers and schemes given by company influence you to change the decession? Frequency 57 43 100 Percent 57.0 43.0 100.0 Valid Percent 57.0 43.0 100.0 Cumulative Percent 57.0 100.0

Valid

Yes No Total

Do Offers and schemes given by company influence you to change the


60 57 50

40

43

30

20

Frequency

10

0 Yes No

Do Offers and schemes given by company influence you to change the deces

Schemes & offers given by the company influence 57% of the people change the decisions and 43% are not influenced.

Babasabpatilfreepptmba.com

Page 108

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS
If offers & schemes would influence you while purchasing a car which one do you find most attractive? Frequency 0% car finance 8 Free accessories 8 Cash discount 25 Extended warranty 25 Exchange offer 34 Total 100 Percent 8.0 8.0 25.0 25.0 34.0 100.0 Valid Percent 8.0 8.0 25.0 25.0 34.0 100.0 Cumulative Percent 8.0 16.0 41.0 66.0 100.0

Valid

If offers & schemes would influence you while purchasing a car which o
40

34 30

25 20

25

Frequency

10 8 0 0% car finance Cash discount Exchange offer Free accessories Extended warranty 8

If offers & schemes would influence you while purchasing a car which one

Offers & schemes influence 8% through 0% car finance, 8% by cash discount, 25% by Exchenge offer, 25% by Free accessories and 34% by Extended warranty.

Babasabpatilfreepptmba.com

Page 109

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

OBSERVATIONS

Findings:

Out of total sample taken 75 % respondents own the car and 25% of the respondents do not own the car.

The 66% respondents are interested to buy another car and nearly 9% of the respondents do not intented to purchase another car.

Out of total sample taken of which 25% of the do not own the car and hence all the 25% people are interested to buy the car.

Among the car 8% of the people are influenced by Brand image of the car, 24% are influenced by vehicle power, 25% are influenced by safety features of the car, 34% are influenced by the price of vehicle and remaining 9% are of the people are concerned of fuel consumption of the vehicle.

Among the car buyers nearly 26% of the people are influenced by the Mechanics and 25% by friends, 17% by the schemes & offers, 16% by family and 16% by the advertisement.

Schemes & offers given by the company influence 57% of the people change the decisions and 43% are not influenced.

Offers & schemes influence 8% through 0% car finance, 8% by cash discount, 25% by Exchenge offer, 25% by Free accessories and 34% by Extended warranty.

Babasabpatilfreepptmba.com

Page 110

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS

RECOMMENDATIONS

The Data indicated that there is huge potential in the Indian automobile industry. Thus the Tata motors should differentiate themselves from there compitators even better then past and even better for future so that they promote their products and try to make their market monopoly.

Nearly 66% of the people are interested to buy another car even though they have a car. Thus the suggestion want to give is, Try to keep the customers interest in Tata motors, dont give the chance to the customer to get dissatisfied .Which may probably result of changing their brand.

Nearly 25% of the people do not have the car, thus all the 25% of the people are interested to own the car. This shows the potential of market in the Indian automobile industry. Thus Tata motors must make promotional activities and keep product differentation, so that they attract more customers.

According to the survey most of the car buyers look to price of vehicle. The Tata has always kept the best price for his product and also has been successful in it. Thus the Tata must set even better price for his product in the future.

According to the survey more number of people in the car buyers take suggestions of mechanics and family. Thus mechanics suggest Tata motors because of the Vehicle power , which has best in its segment. Family people prefer the Tata motors because of the interior space and comfort.

Schemes & offers given by the company influence the customer to change their decision. Tata motors must give more offers & schemes comparing to their

Babasabpatilfreepptmba.com

Page 111

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS compitator. There are few customers who are not influenced by the offers & schemes , so to protect their interest maintain the features ,quality and service after sales. Offers and schemes have been effective in the promotional activity. Thats what the Tata has been doing .Hence Tata dealer must concentrate on offers like 0% finance and Free acceories, which has been less attractive to the customers.

Babasabpatilfreepptmba.com

Page 112

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS QUESTIONAIRE Respondents Name:_______________________________________________________ Address: _______________________________________________________ _______________________________________________________ Occupation: _______________________________________________________ Monthly Income: ______________________________ Age_____________________ 1.) Do you own car? a. Yes

[]

b. No

[]

Note: If No, Go to Question No.4 2.) If Yes, Which car models do you have? _______________________ (Specify) 3.) Do you indented to purchase another car? a. Yes [] b. No If Yes a. Same car as Present One b. Same company, but different model c. A car from different company 3a.) If same car as the present one why? __________________________________________ 3b.) If same company but different brand why? __________________________________________ 3c.) If same from different company Why? __________________________________________ 4.) If No, Do you intend to Purchase Car? a. Yes [] b. No [ ] [] [] [] []

5.) If Yes, what parameters do you consider before making purchase decisions? a.) Model b.) Brand manager c.) Price d) Delivery Period [] [] [] [] Page 113

Babasabpatilfreepptmba.com

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS e.) Vehicle life [] f.) Vehicle Power [] g.) After sales Service [ ] h.) Colures available [ ] i.) Fuel consumption [ ] k.) Safety [] 6.) To What extent do the following persons influence you in making purchase decision? a.) Mechanic b.) Family c.) Friends d.) Advertisement e.) Schemes & offers [] [] [] [] []

7.) What factors influence you to purchase a car? ____________________________________________________________________ 8.) Do offers and schemes given by company influence you to change the decision? a. Yes [] b. No []

9.) If offers & schemes would influence you while purchasing a car which one do You find most attractive ? a.) 0% Car finance b.) Free accessories c.) Cash Discount d.) Extended Warranty e.) Exchange offer [] [] [] [] []

10.) What do you Expect from dealer while purchasing a car? ___________________________________________________________________

BIBILIOGRAPHY

Babasabpatilfreepptmba.com

Page 114

STUDY OF PRODUCT LINE MANAGEMENT AND ITS DIFFERENTATION STRATEGIES EMPLOYED BY AUTOMAKERS Reference Books Marketing Management Marketing Management Service Marketing Philip Kotler. K.D.Basava V.A.Zeithamal, D. D. Gremler M. J. Bitner and Ajay Pandit Websites: www.manickbag.com www.tatamotors.com www.Indianautomobiles.com www.carawle.com

Others: News Paper & Magazines

Babasabpatilfreepptmba.com

Page 115

You might also like