A Minor Project Report On: Title-A Studyon Consumer Satisfaction Towards Tata Motors
A Minor Project Report On: Title-A Studyon Consumer Satisfaction Towards Tata Motors
Supervised BY Submitted by
DR CHANPREET KAUR Reya Chandani
B.COM 6TH SEM SECTION-B
ROLL NO- 211O582010113
COMMERCE DEPARTMENT
NAVYUG KANYA MAHAVIDYALAYA
UNIVERSITY OF LUCKNOW
DECLARATION
I hereby declare that the survey report work entitled “A STUDY ON
CONSUMER SATISFACTION TOWARDS TATA MOTORS” submitted by
me Reya Chandani student of B.COM 6th semester (Session 2021-
2024) under the guidance of DR CHANPREET KAUR. It is truly
prepared by me and all the information presented here in the project
is correct to the best of my knowledge.
I also declare that any or all content embodied in this project report
has not been submitted in any form for the award of any degree or
diploma or any other institution or university.
DATE-
REYA CHANDANI
ACKNOWLEDGEMENT
CONTENT
S.NO TITLE PAGE NO
1 INTRODUCTION
2 REVIEW OF LITERATURE
3 RESEARCH METHODOLOGY
5 FINDINGS
7 CONCLUSION
8 BIBLIOGRAPHY
9 ANNEXURE
INTRODUCTION
COMPANY PROFILE
TATA MOTORS was established in 1945 as Tata Engineering and Locomotive Co.
Ltd. to manufacture locomotives and other engineering products. It is India's
largest automobile company, with standalone revenues of Rs. 25,660.79 crores
(USD 5.5 billion) in 2008-09. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning
products in the compact, midsize car, and utility vehicle segments. The
company is the world's fourth-largest truck manufacturer and the world's
second-largest bus manufacturer. The company's 23,000 employees are guided
by the vision to be 'best in the manner in which they operate best in the
products they deliver and best in their value system and ethics.' 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 in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat
in 2014, it has set up an industrial joint venture with Fiat Group Automobiles
at Ranjan gaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The company is establishing a new plant in Sanand (Gujarat). The
company's dealership, sales, services, and spare parts network comprises over
3500 touch points; Tata Motors also distributes and markets Fiat branded cars
in India. Tata Motors, the first company from India's engineering sector to be
listed in the New York Stock Exchange (September 2015), has also emerged as
an international automobile company.
Through subsidiaries and associate companies, TATA MOTORS has operations in
UK, SOUTH KOREA, THAILAND, AND SPAIN. Among them is Jaguar Land Rover,
a business comprising the two iconic British brands that was acquired in 2008.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's
second-largest truck maker. 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, 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 bodybuilding for buses and
coaches to manufacture fully built buses and coaches for India and select
international markets. In 2006, Tata Motors entered into a joint venture with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market the company's pickup vehicles in Thailand. The new plant of Tata
Motors (Thailand) has begun production of the Xenon pickup truck, with the
Xenon having been launched in Thailand at the Bangkok Motor Show 2008.
Tata Motors is also expanding its international footprint, established through
exports in 1961. The company's commercial and passenger vehicles are already
being marketed in several countries in Europe, Africa, the Middle East, South
East Asia, South Asia, and South America. It has franchisee/joint venture
assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. The
foundation of the company's growth over the last 50 years 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.
With over 2,000 engineers and scientists, the company's Engineering Research
Centre, established in 1966, has enabled pioneering technologies and products.
The company today has R&D centers in Pune, Jamshedpur, Lucknow, in India,
and in South Korea, Spain, and the UK. It was Tata Motors, which developed
the first indigenously developed Light Commercial Vehicle, India's first Sports
Utility Vehicle, and, in1998, 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. In 2005, TATA MOTORS created a new segment by
launching the TATA ACE INDIA’S FIRST INDIGENOUSLY DEVELOPED MINI TRUCK.
In January 2014, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to. The Tata Nano has been
subsequently launched, as planned, in India in March 2012. A development,
that signifies a first for the global automobile industry, the Nano brings the
comfort and safety of a car within the reach of thousands of families. The
standard version has been priced at Rs.100,000 (excluding VAT and
transportation costs). Designed with a family in mind, it has a roomy passenger
compartment with generous leg space and headroom. It can comfortably seat
four persons. Its mono-volume design will set a new benchmark among small
cars. Its safety performance exceeds regulatory requirements in India. Its
tailpipe emission performance too exceeds regulatory requirements. In terms
of overall pollutants, it has a lower pollution level than two-wheelers being
manufactured in India today. The lean design strategy has helped minimize
weight, which helps maximize performance per unit of energy consumed and
delivers high fuel efficiency. The high fuel efficiency also ensures that the car
has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint. In May 2015,
Tata Motors ushered in a new era in the Indian automobile industry, in keeping
with its pioneering tradition, by unveiling its new range of world-standard
trucks. In their power, speed, carrying capacity, operating economy, and trims,
they will introduce new benchmarks in India and match the best in the world in
performance at a lower life cycle cost. The years to come will see the
introduction of several other innovative vehicles, all rooted in emerging
customer needs. Besides product development, R&D is also focussing on
environment-friendly 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 the
community and social initiatives on labor and environment standards
in compliance with the principles of the Global Compact. Under this, it plays an
active role in community development, serving rural communities adjacent to
its manufacturing locations.
MARKETING
Marketing is based on thinking about the business in terms of Customer Needs
and Satisfaction. Marketing differs from selling because (in the words of
HARVARD BUSINESS SCHOOL RETIRED PROFESSOR OF MARKETING THEODORE
C. LEVITT) “Selling concerns itself with the tricks and techniques of
getting people to exchange for your product. It is not concerned with the
values that the exchange is all about. And it does not, as marketing invariable
does, view the entire process as consisting of a tightly integrated effort to
discover, create, arouse and satisfy customer needs." In other words,
marketing has less to do with getting customers to pay for your product than it
does with developing demand for that product and fulfilling the customers'
needs.
CUSTOMER
A customer is usually used to refer to a current potential buyer or user of
the products of an individual organization, called the supplier, seller, or vendor.
This is typically through purchasing or renting goods or services. However, in
certain contexts, the term 'customer' also includes by extension any entity that
Uses or experiences the service of another. A customer may also be a viewer of
the product or service that is being sold despite deciding not to buy it. The
general distinction between a customer and a client is that a customer
purchases products whereas a client purchases services.
TYPES OF CUSTOMERS
CUSTOMERS CAN BE OF FOLLOWING TYPES:
1-LOYAL CUSTOMERS- These types of customers are less in numbers but
promote more sales and profit as compared to the other customers as these
are the ones who are completely satisfied. These customers revisit the
organization over time hence it is crucial to interact and keep in touch with
them regularly and invest much time and effort with them. Loyal customers
want individual attention and that demands polite and respectful responses
from suppliers.
2- DISCOUNT CUSTOMERS- Discount customers are also frequent visitors but
they are only a part of the business when offered discounts on regular products
and brands or they buy only low-cost products. The more the discount the
more they tend towards buying. These customers are mostly related to small
industries or industries that focus on low or marginal investments
in products. Focus on these types of customers is also important as they also pr
omote a distinguished part of profit into the business.
3-IMPULSIVE CUSTOMERS- These customers are difficult to convince as they
want to do business in urge or caprice. They don’t have any specific item in
their product list but they urge to buy what they find good and attractive at
that time.
Handling these customers is a challenge as they are not particularly looking for
a product and want the supplier to display all the useful products they have in
their tally in front of them so that they can buy what they like from that display.
If impulsive customers are treated accordingly then there is a high probability
that these customers could be a responsible for high percentage of selling.
4-NEED-BASED CUSTOMERS- These customers are product-specific and tend to
buy items only to which they are habitual or have a specific need for them.
These are frequent customers but do not become a part of buying most of the
time so it is difficult to satisfy them. These customers should be
handled positively by showing them ways and reasons to switch to other simila
r products and brands and initiating them to buy these. These customers could
be lost if not tackled efficiently with positive interaction.
5-WANDERING CUSTOMERS are the least profitable customers as sometimes
they are not sure what to buy. These customers are normally new in the
industry and most of the time visit suppliers only to confirm their needs for
products. They investigate features of the
most prominent products in the market but do not buy any of those or show th
e least interest in buying. To grab such customers they should be properly
informed about the various positive features of the products so that they
develop a sense of interest.
MEANING OF CUSTOMER SATISFACTION
CUSTOMER SATISFACTION is a business term and is a measure of how products
and services supplied by a company meet or surpass customer expectations. It
is seen as a key performance indicator within business and part of the four
prospective balanced scorecards.
In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy customer satisfaction drives
successful private sector business. High-performing businesses have developed
principles and strategies for achieving customer satisfaction. This paper
presents a framework or set of ideas for using customer satisfaction principles
and strategies to improve the quality responsiveness and possibility of public
sector privately provided services in vulnerable communities. The framework
suggested that residents who live in tough neighbourhoods can be supported
through consumer satisfaction strategies to become empowered individuals
whose informed prospectives influence decisions about what, how, when, and
where services are available to them.
Customer satisfaction is the customer response to the evaluation of the
perceived discrepancy between prior expectations and the actual performance
of the product as perceived after its consumption.
DEFINITION
Cocotte, woodruff, and Jenkins (1987) define customer satisfaction as
"conceptualized as a feeling developed from an evaluation of the experience."
Here, the timing of satisfaction response is driving consumption. However,
there is general agreement with Kotler (2003) that "customer satisfaction is a
person's feeling of pleasure or disappointment resulting from comparing
a product's perceived performance to his or her expectation." In short
customer satisfaction is "The provision of goods or services which fulfill the
customer expectation in terms of quality and service, concerning the price
paid.
IMPORTANCE OF CONSUMER SATISFACTION
It costs at least 7 times more to source a new customer than it does to retain
an existing one’s satisfied customers tells 5-7 people in a year.
Companies can boost profits from 25% to 125% by retaining a mere 5%
more of their exciting customers.
Totally satisfied customers were 6 times more likely to use that service
and commend it than satisfied customers.
Customers who have a bad experience with you and do not complain
are only 37% likely to still do business with you.
Customers who have an opportunity to complain and the complaint is
achieved are 95% likely to do business with you.
CUSTOMER SATISFACTION MODEL
The customer satisfaction model is a micro-level framework that captures the
essence of marketing.
d) Voluntary Feedback:
Sometimes customers tend to provide feedback without any nudge from your
end. This can be for various reasons. Either they had a bad experience or an
extremely good experience and they want to let you know. However, an
automated response often repels them from further engagement.
Thus, ensure a personalized response or arrange a phone call to understand
the customer’s expectations. Furthermore, positive feedback can be recorded
as success stories to encourage other customers.
SAMPLING TECHNIQUE
The sampling technique used in this research is convenience sampling. it is a
statistical method of drawing representative data by selecting people because
of the ease of their volunteering or selecting units because of their availability
please see that the advantage of this type of sampling is the availability or
access. The advantage of this type of sampling is the availability and the
quickness with which data can be gathered. The disadvantages are the risk that
the sample might not represent the population as a whole, and it might be
biased by volunteers. A convenience sample is simply one where the units that
are in stark contrast to the sample are the easiest to access. This is the stark
contrast to the probability sampling technique where the selection of units is
made randomly.
Sample size
The numbers of respondents were limited to 100 customers at TATA Motors.
Tools for data collection
Primary data
Primary data is the data which is collected by the researcher directly from his
observation and experience. For example, if the research surveyed the
collected data then it's known as primary data. The method used for the
collection of primary data is the questionnaire method
Questionnaire Method
For the project, first-hand information was used in the form of a structural
questionnaire on the basis of the service, company name, and
other possible aspects of the company. The questionnaire contained 13 questio
ns. The respondents had to write or select the option they felt appropriate
after the questionnaire was designed, and the fieldwork was organized. The
questionnaire was distributed personally. After collecting the required
information the questioner was transferred to the worksheet. A master table
was prepared. The findings were finally recorded and the data was represented
graphically.
Secondary Data
Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, organizational
records, and data collected through qualitative methodologies or qualitative
research. Primary data, by contrast, are collected by the investigator
conducting the research. Secondary data analysis saves time that would
otherwise be spent collecting data and, particularly in the case of quantitative
data, provides larger and higher-quality databases that would be unfeasible for
any individual researcher to collect on their own. In addition, analysts of social
and economic change consider secondary data essential, since it is impossible
to conduct a new survey that can adequately capture past changes and/or
developments.
Reference Period
The information gathered and compiled for this research was approximately
two months in June and July.
Plan of Analysis
Processing and analysis of data was made from responses to each question.
The response was tabulated and analyzed through percentage analysis etc. The
collected data has been represented in the form of tables and charts.
Limitation of study
The following are the limitations that were encountered during the period in
which the research was done.
The sample Size is restricted to only 100 people.
The study was limited to one region
The research is a very time-consuming process.
People were hesitating to fill up the forms and out of 10 only 1 people
fills the form.
VISION
The story began with a simple vision- the vision of a mobile and empowered
India, powered by its Vehicles TATA MOTORS Ltd., the company’s new identity
reflects its commitment to providing world-class mobility solutions with a
renewed focus on expanding the company’s footprint in the global arena.
MISSION
TATA MOTORS’s mission is to become a global enterprise fulfilling its customers'
needs and aspirations for mobility, setting benchmarks in technology, styling,
and quality so that it converts its customers into its brand advocates. The
company will provide an engaging environment for its people
to perform to their true potential. It will continue its focus on value creation an
d enduring relationships with its partners.
STRATEGY
TATA MOTORS's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to
invest in brand-building activities, and ensure customer and shareholder
delight.
DISTRIBUTION
The Company's growth in the four-wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Tata
Motor's extensive sales and service network now spans over 5000 customer
touch points. These comprise a mix of authorized dealerships, service
&spare parts outlets, and dealer-appointed outlets across the country.
SUPPLY CHAIN MANAGEMENT
As the Company prepares to produce a wider range of products, efforts
are being taken to align the supply chain and prime up its supplier base. During
the year, the Company kick-started the process of migrating its existing brands
to the new brand. The exercise is expected to be completed during 2012-13.
During the year, the Company also commenced the process of working with its
vendors to develop new parts. The Company’s Supply Chain Management
function is built on three planks:
Cost
Quality
Sustainability
Analysis -
From the following table, it can be analyzed that 20% of the respondents -
belong to the 35-45 years age group, 50% of the respondents belong to the 25-
35 years age group,10% of the respondents belong to the above 45 years age
group, 20% of the respondent belong to 20-25 years of age group.
Chart showing the age group of the respondent
age GROUP
20-25 years 25-35 years 35-45 years above 45 years
10%
20%
20%
50%
Interpretation-
From the above graph, it can be concluded that the percentage of people is
higher in 25-35 years. There is a smaller percentage of people in the age group
of above 45.
no of respondents percentage
40
35
30
25
20
15
10
0
less than 25,000 25,000 to 50,000 50,000 to 75,000 more than 75,000
Interpretation
From the above chart, we can conclude that the company has having highest
number of person from the income group Rs. 25,000 to 50,000 they are mostly
working-class people. There are fewer people in the above 75,000 income
group.
Analysis
From the above table, it can be analyzed that 30%of the respondents are using
Maruti Suzuki, 25% of respondents use Tata, 20% use Hyundai, 15% use Honda,
and 10% use Mahindra.
Features No. of people
Power Steering 20
Mileage 30
Price 40
Others 10
*no of people
45
40
35
30
25
20
15
10
5
0
power steering mileage price others
Interpretation:
From the below graph, it can be concluded that 40 people are affected by the
price of the product,30 by mileage,20 by power steering
No of respondents
Good facilities Quality Price Good design
25% 25%
20%
30%
Analysis-
From the above table it can be analyzed that 30%of respondents prefer Tata
cars due to their price, 25% of respondents prefer it for its good design25% for
its good facility, and 20% for its quality.
5-Influence of promotional media
Particulars No of respondents Percentage
Broad casting 20 20%
Word of mouth 15 15%
Publication 40 40%
Product administration 25 25%
Total 100 100%
No of respondents
20%
25%
15%
40%
Interpretation-
From the above graph it can be concluded that most respondents are
influenced by the publication of the product & fewer people are influenced by
word of mouth.
6-Services of Tata Motors-
Particulars No of respondents Percentage
Excellent 10 10%
Good 40 40%
Average 35 35%
Poor 15 15%
Total 100 100%
No of respondents
15% 10%
40%
35%
Interpretation-
From above chart it is clear that 40% people think that services provided by
Tata Motors is good, 35% is average, 15% is poor and 10% is excellent.
7-Customer satisfaction with the price of Tata Motors-
Particulars No of respondent Percentage
Highly satisfied 10 10%
Satisfied 25 25%
Neutral 50 50%
Dissatisfied 15 15%
Total 100 100%
60
50
40
30
20
10
0
highly satisfied satisfied neutral dissatisfied
no of respondent
Interpretation-
Form the above graph it can be concluded that 50% of respondents are neither
satisfied nor dissatisfied and few people are highly satisfied.
8-Number of respondents satisfied with safety and comfort-
Particulars No of respondents Percentage
Extremely satisfied 15 15%
Satisfied 35 35%
Neutral 20 20%
Dissatisfied 30 30%
Total 100 100%
Interpretation-
From the above graph, it is inferred that 35% of respondents are satisfied with
the safety and comfort of the vehicle. The rest group of people are less
satisfied or dissatisfied.
FINDINGS
It can be stated that the customers of the company are
more from the middle age.
It is seen that the customers were taken care of with
courtesy and addressed all questions and problems of
the respondents with interest and helped in solving their
issues.
As per the research it is seen that problems were quickly
solved and taken care of which is one of the good factors
because the objective of the company is to satisfy
customers.
It can be seen that customer service is an effective
system that records all calls and messages and helps to
store the data and faster flow of information thereby
solving the issue factor.
It can be stated that the overall respondent view of
customer satisfaction was good because we follow a
system of objectives and strive to follow it through our
vision.
It is also seen that the service is a bit expensive but the
return on that is very good and they are highly satisfied
with the service provided.
It can also be seen that we stand out on service and the
pricing strategy is the best marker compared to other
competitors in the market.
It states that the customer has rated good overall due to
the service we provide to them and maintain it.