Untitled

SUMMER INTERNSHIP PROJECT REPORT
ON
Comparative study between TATA Magic and three-wheelers.
SUBMITTED TO: - SUBMITTED BY:-
IPM MEERUT SUMAN KUMAR RAY
PGDM (Marke
ting)
SUMMER INTERNSHIP PROJECT REPORT

ON
Comparative study between TATA Magic and three-wheelers.
SUBMITTED TO: - SUBMITTED BY:-
IPM MEERUT SUMAN KUMAR RAY
PGDM (Marke
ting)
Institute of Productivity & Management
PREFACE
The professional training is the internal part of a M.B.A program. It helps the
student understand practical aspects of Business Management in a better way as a
part of my PGDM program at Institute of productivity and management, Meerut I w
as supposed to work the organization. The research project in our basket was- co
mparative analysis of TATA Magic and Three wheelers. The research was based upon
certain objectives such a; to determine the viability of TATA Magic in various
routes of Ranchi, to determine the operating economies of TATA Magic in various
routes etc.
To fulfill the objective of the research various auto stand has been surveyed an
d different routes of Ranchi was travelled to gain the practical experience and
to know the actual scenario of the Market.
The project report contains all the study covered in the project. The project he
lped me a lot to learn regarding the practical aspects of marketing and marketin
g research. I am thankful to Reliance Retail Ltd. for giving me such an opportun
ity which would be beneficial and helpful to me in future
SUMAN KUMAR RAY

PGDM (2009-201
1)
IPM MEERUT
ACKNOWLEDGEMENT
In order to make my project I acknowledge a special thanks to all those people w
ithout whose supports it would not be possible for me to complete for me to comp
lete my report.
First of all I really thankful to my Institute of productivity and management, M
eerut because of them I could achieve the target.
I would like to thank Mr. ASIT MOHAN, Director and Mr. SARAVJEET SINGH, Deputy D
irector, IPM, MEERUT, who arranged our Summer Training in a reputed Business Ins
titution, namely, TATA MOTORS LIMITED.
I would also thankful to the MR. ASHISH MEHTA Territory sales manager and Mr. SU
BASISH GANGULY Area sales manager TATA MOTORS LIMITED who has been in-charge of
guiding and handling my SUMMER INTERNSHIP PROGRAMME.
I would like to acknowledge Mr. V.S Solanki and Mr. Sushant Mittal and and the e
ntire esteemed faculty at IPM, Meerut for providing me with the required theoret
ical background to approach the project
Also I would like to express my inner feeling for all the people for co-operatin
g and helping me throughout the project. Last but not the least I am thankful to
my parents and friends who have provided me with their constant support through
out this project
SUMAN K
UMAR RAY
PGDM (
2009-2011)
I
PM MEERUT
TABLE OF CONTENTS
EXECUTIVE SUMMARY 6
THE INDIAN AUTOMOBILE INDUSTRY 7
COMPANY OVERVIEW 13
PRODUCT LINE OF TATA MOTORS LIMITED 19
PRODUCT PROFILE (TATA MAGIC) 21
SWOT ANALYSIS OF TATA MAGIC 24
COMPETITORS OVERVIEW 25
OBJECTIVE OF STUDY 27
RESEARCH METHODOLOGY 28
METHODS OF DATA COLLECTION 29
AWARNESS PROGRAMME 30
SURVEY ANALYSIS 35
COMPARATIVE ANALYSIS 42
DEALER ANALYSIS 54
OPERATING ECONOMIES COMPARISION 65
FINDINGS 76
ADVANTAGES 77
STRATEGIC RECCOMENDATIONS 78
CONCLUSIONS 79
EXECUTIVE SUMMARY
The project is based on comparative analysis between TATA Magic and other three
wheelers. A research has been made for checking the viability of TATA MAGIC in S
CV section. The work done for completion of the research involves all steps of e
ffective marketing research
We received brochures from the regional office Ranchi which we went through to k
now about the specification about Magic. At the same time we also gathered infor
mation regarding the competitors of TATA Motors in this segment. We came to the
conclusion that Piaggio Ape, Mahindra Alfa, Bajaj Mega and Force Minidor are the
main competitors in the state of Jharkhand. We collected information of the com
petitors from net and studied them.
Further we collected information in the form of questionnaires pertaining to TAT
A MAGIC and their main competitors. The information is collected from different
auto stands in Ranchi.
To know the consumer’s response on the utility of these vehicles and viability of
Magic in different routes a survey was conducted on few auto stands in Ranchi, w
e also travelled in TATA Magic and other three wheeler to determine the operatin
g economies in various routes to make a comparison between the earning per day.
All the responses were collected from drivers and owners. These responses were n
oted down and analyzed with the help of charts and thus conclusions were drawn.
After analyzing the data and responses collected appropriated recommendations we
re given to our project guide.
DATA COLLECTION METHOD-
1. Primary sources:
- Personal interviews.
- Questionnaires.
- Showroom visits.
2. Secondary sources:
- Concerned data.
- Brochure.
- Through internet.
THE INDIAN AUTOMOBILE INDUSTRY
Indian automobile industry is the seventh largest in the world with an annual pr
oduction of over 2.6 million units in 2009. India emerged as Asia’s fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand in the year 200
9. By 2050, the country is expected to top the world in car volumes with approxi
mately 611 million vehicles on the nation’s roads
Following economic liberalization in India in 1991, the Indian automotive indust
ry has demonstrated sustained growth as a result of increased competitiveness an
d relaxed restrictions. Several Indian automobile manufacturers such as Tata Mot
ors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and intern
ational operations. India s robust economic growth led to the further expansion
of its domestic automobile market which attracted significant India-specific inv
estment by multinational automobile manufacturers. In February 2010, monthly sal
es of passenger cars in India exceeded 100,000 units.
Embryonic automotive industry emerged in India in the 1940s. Following the indep
endence, in 1947, the Government of India and the private sector launched effort
s to create an automotive component manufacturing industry to supply to the auto
mobile industry. However, the growth was relatively slow in the 1950s and 1960s
due to nationalization and the license raj which hampered the Indian private sec
tor. After 1970, the automotive industry started to grow, but the growth was mai
nly driven by tractors, commercial vehicles and scooters. Cars were still a majo
r luxury. Japanese manufacturers entered the Indian market ultimately leading to
the establishment of Maruti Udyog. A number of foreign firms initiated joint v
entures with Indian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for bui
lding motorcycles and light commercial-vehicles. It was at this time that the In
dian government chose Suzuki for its joint-venture to manufacture small cars. Fo
llowing the economic liberalization in 1991 and the gradual weakening of the lic
ense raj, a number of Indian and multi-national car companies launched operation
s. Since then, automotive component and automobile manufacturing growth has acce
lerated to meet domestic and export demands.
Today, the Indian automobile industry is ranked first in the world in the produc
tion of three wheelers, second in the production of two wheelers, fourth in the
production of commercial vehicles and ninth in the production of passenger vehic
les. With a production of more than 11 million vehicles in FY08-09, the Indian a
utomotive industry has shown an outstanding resilience after the last down cycle
about a decade back. In the last few years, the Indian automotive industry has
grown at a healthy rate by reducing costs and improving efficiency. With its new
found confidence, it has gone beyond the shores of India and is creating a note
worthy footprint in different geographies in the world.
The Indian automotive market with a healthy growth rate of 14% in the last 7 yea
rs (as on FY08-09) was a source of attraction to many foreign automobile compani
es whose entry in the Indian market not only increased competition, but also rai
sed customer expectations about product quality and reliability. This forced the
Indian companies to introduce new and interesting products and innovation has n
ow become a notable feature of the Indian automobile industry.
The automobile industry consisting of cars, trucks, buses, two-wheelers and thre
e-wheelers, is vital to the growth of the Indian economy. In the last decade the
ir share in the Indian economy is around 5% of GDP.
Economic progress is indicated by the amount of goods and services produced whic
h give the impetus for transportation and boost the sale of vehicles. Increase i
n automobile production has a catalyst effect by indirectly increasing the deman
d for a number of raw materials like steel, rubber, plastics.
Since transportation is the nerve center of every other industry, the well being
of the automobile industry is a good indicator of the health of the economy. Ec
onomic studies have shown that every truck manufactured creates anywhere between
eight to twelve jobs and a bus would create around seven, which would include s
alespeople, drivers, mechanics, cleaners and servicing staff.
Before Independence
Before independence India was seen as a market for imported vehicles. The asse
mbling of cars manufactured by General Motors and other leading brands was the o
rder of the day. Indian auto industry focused on servicing, dealership, financin
g and maintenance of vehicles. Manufacturing started only after a decade from in
dependence.
After Independence
Till the 1950s the Indian Railways played a pivotal role in meeting India s tran
sportation needs. The railways used to carry 90 per cent of the total freight, w
hile road transport accounted for the balance. But in the current context the dy
namics have changed. Surface transport accounts for 65% of freight movement and
80% of passenger movements. The slow growth of railway infrastructure has been p
artly due to administrative reasons, partly due to difficulty in acquiring land
and partly due to high capital cost involved for every additional railway line.
The Indian automobile industry faced several challenges and road blocks to growt
h since independence. Manufacturing capability was restricted by the rule of lic
ense and could not be increased. The total production of passenger cars was limi
ted to 40,000 a year for nearly three decades. This production was also confined
to three main manufacturers Hindustan Motors, Premier Automobiles and Standard
Motors. There was no homegrown expertise or research & development initiative. I
t was difficult to import scientific know how and vital spare parts and cumberso
me to recruit foreign technical experts. The pricing was kept under control by t
he government. Here was the contradiction, a passenger car was thought to be a p
remium product only for the rich, yet it came under the purview of protection of
a socialist regime.
Initially labor was unskilled and had to go through a process of learning throug
h trial and error. But to the credit of these workers, it was they who developed
the skill set required for future expansion in the industry.
The earlier automobiles were a domestic version of prominent International Brand
s. The Morris Oxford popular in the 1950s, became the Ambassador, the Fiat 1100
became the Premier Padmini. By 1960s nearly 98% of the product was developed ind
igenously.
By the end of 1970s, significant changes in the automobile industry were witness
ed. Initiatives like joint ventures for light commercial vehicles did not succee
d. New models like Contests, the Rover and the Premier 118NE, hit the market.
Socialistic Pattern of Growth
India by and large followed a socialist system till the later part of 1980s.The
government focused on development through heavy, long gestation, capital intensi
ve projects like steel manufacturing. The quality of the finished good and custo
mer feedback were not given much priority. As a result the country missed a gold
en opportunity to accelerate to a faster growth trajectory by at least 2 decades
.
The Pioneering Achievements
Mr. J.R.D Tata s role in the development of the Indian automobile industry has t
o be mentioned. The Tata group set up a high standard Engineering Research Centr
e (ERC) in 1965 to facilitate technological advancement. Mr. Tata pioneered the
indigenization of scientific knowledge for trucks in collaboration with Mercedes
Benz.
The launch of Maruti 800 in 1983 changed the dynamics of the passenger car secto
r in India. It was also known as the people’s car.
Stability in the Market
The Indian automobile industry has come a long way since independence. From bein
g an importer of automobiles to a manufacturer. From having minimum foreign coll
aborations to joint ventures. This attribute cannot be considered as a weakness,
but as sharing of best practices. This phenomenon can be compared to the busine
ss collaboration in the outsourcing industry.
The Future
• The Indian automobile industry is expected to grow to US$ 40 billion by 2015 fro
m the current level of US$ 7 billion in 2008. By the year 2016 the industry is e
xpected to contribute 10% of the nation’s GDP. The industry manufacturers over 11
million vehicles a year, employing more than three million people.
• The greatest challenge and competition would be from the Chinese automobile indu
stry. The Chinese automobile industry has been able to give stiff completion to
India in terms of productivity, cost of manufacturing and technology. Again the
present trend of excess manufacturing capability, reduced margins put additional
pressure on the industry.
• The global recession has had a dampener effect on the growth of the industry, bu
t market experts believe it is only a short term phenomenon and are confident of
the industry bouncing back.
• On the positive side, India’s strength in software sector, combined with skilled l
abor and low cost of manufacturing should place it in a favorable position globa
lly.
• Recently Ratan Tata, Chairman (Tata Motors) created history by launching the wor
ld s cheapest car NANO. The cars pricing is around one lakh, gaining instant rec
ognition in the automobile industry across the globe. It heralded the coming to
age of the Indian Automobile Industry.
CURRENT SCENARIO OF INDIAN AUTOMOBILE INDUSTRY:
*Source: SIAM (Society Of Indian Automobile Manufacturers)

COMPANY OVERVIEW
Tata Motors Limited is India s largest automobile company, with consolidated rev
enues of Rs.70, 938.85 crores (USD 14 billion) in 2008-09. It is the leader in c
ommercial vehicles in each segment, and among the top three in passenger vehicle
s 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 24,000 employees are guided by the vision to be "best in the manne
r in which they operate best in the products they deliver and best in their valu
e system and ethics."
Established in 1945, Tata Motors presence indeed cuts across the length and bre
adth of India. Over 5.9 million Tata vehicles ply on Indian roads, since the fir
st rolled out in 1954. The company s manufacturing base in India is spread acros
s Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat
in 2005, it has set up an industrial joint venture with Fiat Group Automobiles
at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat power tr
ains. The company is establishing a new plant at Sanand (Gujarat). The company s
dealership, sales, services and spare parts network comprises over 3500 touch p
oints; Tata Motors also distributes and markets Fiat branded cars in India.
Globalization
Tata Motors, the first company from India s engineering sector to be listed in t
he New York Stock Exchange (September 2004), has also emerged as an internationa
l automobile company. Through subsidiaries and associate companies, Tata Motors
has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar
Land Rover, a business comprising the two iconic British brands that was acquire
d in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Ko
rea s second largest truck maker. The rechristened Tata Daewoo Commercial Vehicl
es Company has launched several new products in the Korean market, while also ex
porting these products to several international markets. Today two-thirds of hea
vy 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, and subsequently the remaining stake in 2009. Hispanic’s pres
ence is being expanded in other markets. In 2006, Tata Motors formed a joint ven
ture with the Brazil-based Marco polo, a global leader in body-building for buse
s and coaches to manufacture fully-built buses and coaches for India and select
international markets. In 2006, Tata Motors entered into joint venture with Thon
buri 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 launc
hed in Thailand in 2008.
Tata Motors is also expanding its international footprint, established through e
xports since 1961. The company s commercial and passenger vehicles are already b
eing marketed in several countries in Europe, Africa, the Middle East, South Eas
t Asia, South Asia and South America. It has franchisee/joint venture assembly o
perations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.
The foundation of the company s growth over the last 50 years is a deep understa
nding of economic stimuli and customer needs, and the ability to translate them
into customer-desired offerings through leading edge R&D. With over 3,000 engine
ers and scientists, the company s Engineering Research Centre, established in 19
66, has enabled pioneering technologies and products. The company today has R&D
centers in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spai
n, and the UK. It was Tata Motors, which developed the first indigenously develo
ped 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. In 200
5, Tata Motors created a new segment by launching the Tata Ace, India s first in
digenously developed mini-truck
.
Recent Ventures:
In January 2008, Tata Motors unveiled its People s Car, the Tata Nano, which Ind
ia and the world have been looking forward to. The Tata Nano has been subsequent
ly launched, as planned, in India in March 2009. A development, which signifies
a first for the global automobile industry, the Nano brings the comfort and safe
ty of a car within the reach of thousands of families. The standard version has
been priced at Rs.100, 000 (excluding VAT and transportation cost).
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobil
e industry, in keeping with its pioneering tradition, by unveiling its new range
of world standard trucks called Prima. In their power, speed, carrying capacity
, operating economy and trims, they will introduce new benchmarks in India and m
atch the best in the world in performance at a lower life-cycle cost.
Corporate Social Responsibilities
Tata Motors is equally focused on environment-friendly technologies in emissions
and alternative fuels. It has developed electric and hybrid vehicles both for p
ersonal and public transportation. It has also been implementing several environ
ment-friendly technologies in manufacturing processes, significantly enhancing r
esource conservation.
Tata Motors is committed to improving the quality of life of communities by work
ing on four thrust areas – employability, education, health and environment. The a
ctivities touch the lives of more than a million citizens. The company s support
on education and employability is focused on youth and women. They range from s
chools to technical education institutes to actual facilitation of income genera
tion. In health, its intervention is in both preventive and curative health care
. The goal of environment protection is achieved through tree plantation, conser
ving water and creating new water bodies and last but not the least, by introduc
ing appropriate technologies in its vehicles and operations for constantly enhan
cing environment care.
Core Purpose, Value and Vision & Mission
Our Mission
Shareholders
To consistently create shareholder value by generating returns in excess of weig
hted average Cost of Capital during the upturn and at least equal to weighted av
erage cost of capital during the downturn of the business cycle.
Customers
To strengthen the TATA brand and create lasting relationships with the customers
by working closely with business partners to provide superior value for money o
ver the life cycle.
Employees
To create a seamless organization that incubates and promotes innovation, excell
ence and the Tata core Values
Vendor and Channel Partners
To foster a long term relationship so as to introduce a broad range of innovativ
e products and services, that would benefit our customers and other stakeholders
.
Community
To proactively participate in reshaping the country’s economic growth. To take a h
olistic approach in environmental protection.
PRODUCT LINE OF TATA MOTORS LIMITED
PRODUCT PROFILE (TATA MAGIC)

The Tata Magic is a Micra van launched by Tata Motors in June 2007. The Magic is
the passenger version of the Ace mini-truck; the new Magic features an all-stee
l cabin. It offers a flexible seating capacity of 4-7 passengers with adequate l
egroom. Powered by a 16 bhp (12 kW), 702 cc water-cooled diesel engine, the Magi
c offers high fuel efficiency and very low maintenance. The 12-inch tyres provid
e higher ground clearance, and the rigid front axle is designed to handle tough
roads. The Magic s turning radius of 4.3 meters (14.1 ft) is nimble enough to na
vigate the bylines and traffic of India s crowded cities. The Magic has a clearl
y visible instrument cluster, utility tray and a digital clock in the dashboard
and also a provision for fitting a radio.
The Magic meets BS-III emission norms and has been developed for use in any mark
et — be it urban, semi-urban or rural. It is backed by a 36,000 km/12-month warran
ty. The Magic range starts at Rs 2.90 lakh (ex-showroom).Magic had being launche
d nation-wide, starting with Maharashtra and Gujarat, after which availability w
as extended to other parts of the country in a phased manner.
Whether it is a hub town or a village, the Magic can very well ferry passengers
with ease and comfort. The rigid front axle of this vehicle has specifically bee
n designed keeping in mind the Indian conditions. It can very well and safely na
vigate through the narrow countryside streets or roads where it seems difficult
for other vehicles to do so.
As far as safety is concerned, the Magic meets all the safety norms. There is ab
solute safety for drivers and passengers, as it incorporates door intrusion beam
s, seatbelts for drivers and passenger cabin and vacuum assisted brakes for exce
llent braking performance and large windscreen for better driving visibility. In
addition to this, it meets all the safety standards for static roll over and ro
of crush because of its hard top and tubular construction. Above all, you can ha
ve an easy and safe reversing because of the two box tail lamp with an inbuilt r
eflector and a bright reverse lamp.
TATA MAGIC PASSENGER
1. ENGINE
Model TATA 275 IDI NA
Type 4- stroke, naturally aspirated, indirect injection diesel engine
Max Output 16hp @3200 rpm
Max. Torque 38 nm @2000rpm
Displacement 702 cc
2. CLUTCH Single Plate dry Friction diaphragm type 170 dia
3. GEAR BOX GBS 65-4/6.31
Type Synchromesh (4 forward gears), Sliding Mesh(reverse gear)
Front Axle Rigid Beam Shaped
Rear Axle Single Reduction, High powered gears and semi-floating a
xle
4. STEERING Mechanical, Variable Ratio (20.5 to 24.5), 380 mm dia
5. BRAKES
Type Vacuum Assisted Dual circuit hydraulically activated
Front Disc Brakes
Rear Drum Brakes (200mm dia×30mm)
6. SUSPENSION
Shock Absorber Hydraulic double – acting telescopic type
Type Parabolic Leaf Spring Suspension at both front and rear
WHEELS AND TYRES
Tyres 145 R 12 LT 8 PR RADIAL
7. DIMENSIONS (MM) (MM)
Length 3790
Width 1500
Height 1845 (unladen)
Wheelbase 2100
Front Wheel Gauge 1300
Rear Wheel Gauge 1320
Inside Length 2212
Inside Width 1220
Height of Side Panels 300
Ground Clearance 160
Minimum Turning Circle Diameter 4.3m
8. FUEL TANK CAPACITY 30 litres
PERFORMANCE
Max. Speed 64 kmph.
Max. Gradability 22%
Grade Restartability 21%
9. WEIGHTS
Max. GVW 1600 kg
Kerb Weight 1000kg
Seating Capacity Driver + 7
10. Security Measures
On Hinge Doors Pop Up Nob for Side Doors
Others Static Role over tested capacity
Specific Reflex Reflectors and Door Intrusion Beams
SWOT ANALYSIS
A scan of the internal and external environment is an important part of the stra
tegic planning process. Environmental factors internal to the firm usually can b
e classified as strengths (S) or weaknesses (W), and those external to the firm
can be classified as opportunities (O) or threats (T). Such an analysis of the s
trategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm s re
sources and capabilities to the competitive environment in which it operates. As
such, it is instrumental in strategy formulation and selection.
The SWOT Analysis of Tata Magic is as shown in the figure:
COMPETITORS OVERVIEW
Until a decade ago, the auto sector in India had been a relatively protected ind
ustry limiting the entry of foreign companies with high tariffs against imports.
Today, as part of a broader move to liberalize its economy, India has opened up
the sector to Foreign Direct Investments, and since then has also progressively
relaxed trade barriers. Today, almost all of the major global companies are pre
sent in India producing two-wheelers and passenger cars in almost all segments.
Over the years the world has been witnessing tremendous development in the secto
r of automobile industry. With their advanced engineering techniques, the major
auto giants like Tata, Maruti, General Motors, Hyundai, Mitsubishi etc have come
up with most sophisticated vehicle that a human mind could have hardly imagined
just a few years ago. It is not only the cars, consumer vehicles and two wheele
rs are also been sold in large numbers, but the three wheeler market is also qui
te big in the south east nations. We can see innumerable three wheelers running
on the roads of various Southeast Asian countries like India, Thailand Sri Lanka
, Pakistan, Philippines, Nepal, Bangladesh etc.
There are a number of reasons that have resulted into the proliferation of three
wheelers in umpteen countries. Three wheelers are quite economical in terms of
manufacturing and maintenance. They have also earned huge popularity due to thei
r easy maneuvering capabilities through the narrow lanes that are prevalent in m
ost of the developing countries.
The two and four wheelers are quite a hit all around the world. The two wheelers
have undergone significant transformation resulting in categories like scooters
, mopeds and motorcycles, the four wheelers also have come up with different sha
pe, size design and forms and also have evolved into so many forms with light an
d heavy commercial vehicles. However it is the three wheeler segment of the auto
mobile that has lagged behind.
No wonder, as against them, the number of popular three wheeler manufacturers is
quite limited and in India, One comes across only three leading three wheeler m
anufacturers. The leading three wheeler manufactures in India are Bajaj Auto, Ma
hindra & Mahindra, the Italy based
Piaggio and Force Minidor. While Bajaj Auto is one of the leading name in the In
dian two wheeler segment and Mahindra & Mahindra is known more for its jeeps lik
e Bolero and Scorpio.
In the three wheeler segment, the classification is broadly in terms of cargo an
d passenger vehicles. Since the former does have a very limited capacity to carr
y goods and is not preferred by many, the three wheeler manufacturers are more i
nto the passenger three wheelers. Bajaj Auto has a range of models for passenger
three wheelers namely RE 2S, RE 4S, RE 4S CNG, RE4S LPG, RE Diesel and RE Diese
l Mega while its existing cargo is called GC1000.
Mahindra & Mahindra has got the Champion range of three wheelers. There are Cham
pion pick up and Champion delivery vans while the Champion Passenger carriers is
mostly seen in the western parts of the country. The Alfa three wheeler carriag
es of the Mahindra & Mahindra has a wide and tall cabin, heavy duty gear box, un
ique designed chassis and hydraulic shock absorbers.
The Italian auto major Piaggio manufactures Ape 50 in association with Bajaj Aut
o at Pune with 150cc engine. This three wheeler has different body forms and mat
ches the specifications of various countries wherever it is produced.
Force Motors Limited is an automobile company, which was earlier known as Bajaj
Tempo Limited. The name change has been effected from 21st February, 2006. The c
ompany possesses expertise in the design, manufacture and development of its com
prehensive range of automobile components, vehicles and aggregates. Three wheele
rs from Force Motors Limited come as the Minidor family. The Minidor family comp
rises a host of customized three wheelers. These vehicles are beautifully engine
ered. The three wheelers from Force Motors are economical, eco-friendly and toug
h ones. These vehicles are efficient transport options for humans and goods alik
e.
OBJECTIVES OF STUDY
DEALER ANALYSIS OF TATA MAGIC
TO DETERMINE THE VIABILITY OF TATA MAGIC IN DIFFERENT ROUTES.
TO COMPARE THE OPERATING ECONOMY OF TATA MAGIC AND OTHER THREE WHEELERS.
TO ANALYZE DIFFERENT ATTRIBUTES OF TATA MAGIC.
TO CREATE AWARENESS ABOUT THE BENEFITS OF TATA MAGIC.
TO FIND OUT THE CHALLENGES FACED.
METHODOLOGY
Research methodology is a way to systematically solve the research problems. Whe
n we talk about the research methodology we don’t talk about the research method b
ut also consider the logic behinds the method use in the context of research res
ults are capable of beings evaluated either by the researcher himself or by othe
rs.
Here the work in our baggage to accomplish is to Study of TATA Magic vis-a-vis i
ts competitors. The methodology plays a dominant role in any research work. The
effectiveness of any research work depends upon the correctness and effectivenes
s of the research methodology.
Here i have used Descriptive Research Design i.e. formulating a problem from mor
e precise investigation. In this type of research method researchers are suppos
ed to understand the problems under research, it is done for understanding and k
nowing new phenomenon. It helps in segmenting and targeting markets which are fa
vorable for the company; in some cases describing the situation may provide info
rmation and many other findings, all that is needed to solve business problems.
The major emphasis in such studies is on the discovery of the ideas and insight
s. Research design for such studies must be flexible enough to provide opportuni
ty for considering different aspects of the problem under study.
METHODS OF DATA COLLECTION

Primary Data collection:--Collection of Data and opinion from existing Customers
and the competitors.
Secondary Data collection: -- Collection of data from internet and study materia
l and brochures.
Data collection from the RTO (regional transport office)
Qualitative Analysis of the data collected:

A standard set of questionnaires would be designed and distributed to various pe
ople who are either owners or drivers or both. To study the analysis about custo
mer’s awareness, satisfaction and requirement of TATA Magic along with the competi
tors.
Hence methodologies of my project would include:
Open ended questionnaire.
Close ended questionnaire.
Personal interviews and informal discussions.

Random sample survey of customers
AWARENESS PROGRAMME
Sample Design
Sample Size 60
Target Population • Commercial vehicle owners
• Auto drivers
• Common public
Location State of Jharkhand (Dhurva)
Duration of the surveys One day
Type of information structured
Information given Shown below
INFORMATION PROVIDED:
On road price
Discount being provided by the dealer
Benefits
Safety features
Feature comparison with the competitors
Offered test drive
Finance option
Different routes where Magic can run
AND TOOK FEEDBACK FROM EXISTING CUSTOMERS.
Safest features:
Rollover test
The vehicle rolled over from a 800mm height platform on to the hard ground. Thi
s test is mandatory only for buses. MAGIC need not comply with this standard bu
t has been developed to meet this requirement in order to ensure adequate safety
for occupants.
S.No Parameters Ape Magic Advantages
1 Engine Capacity (cc) 395 (1 Cyl) 702 (2 Cyl) Reliable Engine,
Lesser Maintenance
2 Engine Power (HP) 8 16 More Power, More Speed
3 Torque (NM) 16 38 More Pulling power, lesser gearshifts
4 Fuel Tank (ltrs) 10 30 More distance without refueling
5 Speed (Kmph) 50 64 Faster Turnaround, More Trips
6 No. of seats 3 6 & 7 More Passengers, More Earning
7 Position of Engine Rear Front More Passenger Comfort
8 No. of Wheels 3 4 More Safety
9 Rollover Test No Yes More Safety
10 Roof Top Soft Hard More Safety
11 Shower Proof No Yes All weather proof
Tata Magic with Three Wheeler
Tata Magic with Large Three Wheelers
Sl Parameters Vikram Champion Magic Advantages
1 Engine cc 510 (1 Cyl) 510 (1 Cyl) 702 (2 Cyl) Reliable
Engine, Lesser Maint.
2 Engine Power (HP) 10 10 16 More Power, More Speed
3 Torque (NM) 22 27 38 More Pulling power, lesser gears
hifts
4 Gradability %) 12% 11% 22% 100% more climbing ability
5 Fuel Tank (Ltrs) 10 10 30 More distance without re
fueling
6 Speed (kmph) 54 54 64 Faster Turnaround, More Trips
7 No. of seats 6 6 7 More Pass., Higher Earning
8 Position of Engine Rear Rear Front More Passenger Comfort
9 No. of Wheels 3 3 4 More Safety
10 Tyre Size (inches) 10” 10” 12” Better Grip & Stability
on road
11 Rollover Test No No Yes More Safety
12 Roof Top Hard Soft Hard More Safety
SURVEY ANALYSIS
SAMPLE DESIGN
DETAILS OF THE SURVEY CONDUCTED
Sample Size 91
Target Population • Auto drivers
• Owner and driver
Location Ranchi Auto stands
Duration of the surveys 20 days
Type of questionnaire Structured
No. of Questions involved 15
1. No. of vehicles surveyed in different stands:-

Stand location In percentage In numbers
Booty More 7% 6
ITI 6% 5
Park 2% 2
Kutchary 33% 32
Deepatoli 7% 6
Ratu Road 2% 2
Dhurva 8% 7
Hatia 8% 7
Hotwar 6% 5
kanta Toli 11% 10
Namkum 4% 4
Tatisilve 6% 5
2. Number of vehicles surveyed:-
Type of vehicle In percentage In numbers

Mgic 23% 21
Minidor 25% 23
Piaggio 52% 47
3. Type of respondents:-
Type of respondent In percentage In numbers

Driver 55% 50
Owner and Driver 45% 41
4. Average. number of passengers:-
Type of vehicle Avg. Number of passengers

Magic 12
Piaggio 9
Monidor 10
5. Mileage
Type of vehicle Km/per liter

Magic 14
Piaggio 26
Minidor 18
COMPARATIVE ANALYSIS
1. DESIGN:
ANALYSIS: With the existing design of TATA MAGIC 2% were strongly disagreed and
64% were strongly agreed that the design of TATA MAGIC is better than its compet
itors because of its car like interiors and steel body.
2. SEATING CAPACITY:
ANALYSIS: Out of the total respondent 88% were strongly agreed that the seating
capacity in TATA MAGIC is more than its competitors. And rest 12% who were somew
hat disagree were trekker and commando owners or drivers. And for driver seat MA
GIC has got 20% more cabin space.
3. PICK UP :
ANALYSIS: Out of the total respondent surveyed majority ( 43%) were strongly dis
agree that the TATA MAGIC has a better pick up as compare to its competitors whe
reas only 14% were somewhat agree that pick up of the vehicle is not really wors
e.
4. SPEED:
ANALYSIS: Comparing the speed of TATA MAGIC with its competitors, 64% of the res
pondents were strongly agreed that it has more speed than its competitors and no
ne of them were at all disagreed as it has 10kmph more speed than its competitor
s.
5. COMFORTABILITY:
ANALYSIS: Having different seat for driver, car like seat for passengers and 20%
more cabin space has lead 61% of respondent to say that TATA MAGIC has more com
fortable seats for driver as well as passengers than its competitors.
6. DURABILITY:
ANALYSIS: By looking at the above chart we can say that 43% of the respondents
agreed that TATA MAGIC has more durability than its competitors because some of
them are MAGIC users and also because of the brand name of TATA.
7. PROFITABILITY:
ANALYSIS: 50% of the respondents were strongly agreed that TATA MAGIC is more pr
ofitable than other vehicle of segment because of more sitting capacity, low mai
ntenance cost and more numbers of trips as the maximum speed of the vehicle is m
ore as compared to its competitors.
8. SAFETY:
ANALYSIS: Four wheels, steel body, hard top and cover from all sides are major p
oints for which 71% of respondents were strongly agreed that TATA MAGIC is safer
than its competitors.
9. INCREASE IN SOCIAL STATUS:
ANALYSIS: Being a four wheeler vehicle, TATA MAGIC increases the social status
of the user as it gives the car type feelings. Thus majority of respondent (78%)
strongly agreed that MAGIC as compared to its competitors increases their socia
l status.
10. SERVICE AT SERVICE STATION:
ANALYSIS: 43% of the respondents were agreed that the service provided by autho
rized service station and the availability of the spare parts of TATA MOTORS are
much better and easily available than its competitors. 21% those who could not
say about the service provided at service station were the respondents who never
used any TATA MOTORS product.
11. MILEAGE:
ANALYSIS: 20 kmpl is decent enough for 53% of the respondents to agreed upon th
at TATA MAGIC has good mileage considering the fact that it is four wheeler and
has more carrying capacity.
12. BRAKES:
ANALYSIS: Disc Brakes at front wheel and Drum Brakes (200mm dia×30mm) at rear whee
l has lead 77% of respondents to agree strongly upon that TATA MAGIC has a bette
r braking system than its competitors.
DEALERS ANALYSIS
There are 5 authorized dealers of TATA Motors in Jharkhand covering 24 districts
. They are:
1. MITHILA MOTORS:
This dealer of TATA Motors operates in 3 districts of Jharkhand namely East Sing
hbhum, West Singhbhum and Saraikela & Kharswan. It is the oldest dealer of TATA
Motors in the state of Jharkhand and has main office at Jamshedpur.
The shaded area in the above map is the region (East Singhbhum, West Singhbhum a
nd Saraikela & Kharswan) where Mithila Motors operates.
We can see that in the year 2008 market share was increased by 92.79% from 5.27%
to 10.16% and in the year 2009 it was decreased by 4.53 % from 10.16% to 9.70%
2. BUDHIA AGENCIES:
This dealers covers the area of 8 districts of Jharkhand namely Ranchi, Palamu,
Khunti, Garwha, Gumla, Simdega, Lohardagga, Latehar. Covering the maximum num
ber of districts than any other dealer in the state of Jharkhand. It has main of
fice at Ranchi.
Shaded area in the above map shows the region covers by Budhiya Motors. it also
includes Khunti, a district that is formed recently which was earlier a part of
Ranchi district.
to 12.47% and in the year 2009 it was increased by 3.84% from 12.47% to 12.95%
3. GAJRAJ VAHAN Pvt. Ltd:

There are 4 districts under this dealer and they are Hazaribagh, Ramgarh, Koderm
a and Chatra. Main office at Hazaribagh.
The region shaded in the above map is the area where Gajraj Vahan Pvt. Ltd opera
tes. It includes a new district called Ramgarh, which was earlier a part of haza
ribagh district.
to 33.05% and in the year 2009 it was decreased by 37.8% from 33.05% to 20.53%
4. J.M.A STORES:
This dealer of TATA Motors operates in three districts of Jharkhand namely Dhanb
ad, Bokaro and Giridih. It operates in one of the most potential area of Jharkha
nd and has main office at Dhanbad.
The shaded region in the above map shows the area where J.M.A stores operates. T
hough it overs 3 district but they are highly potential.
We can see that in the year 2008 market share was increased by 231% from 11.34%
to 37.54% and in the year 2009 it was decreased by 31.9% from 37.54% to 25.5
6%
5. GANPATI VEHICLES:
This dealer of TATA Motors covers the entire 6 districts in the north east regio
n of Jharkhand namely Deoghar, Dumka, Godda, Pakur, Jamtara and Sahibgunj. It ha
s main office at Deoghar.
The above shaded area of the map show the area that is covered by Ganpati Vehicl
es. So far this dealer has the best selling record of TATA MAGIC for the year 20
09 and has achieved the maximum market share ever by TATA MAGIC.
We can see that in the year 2008 market share was increased tremendously from 0.
62% to 39.29% and in the year 2009 it was increased by 34.41% from 39.29% to 52.
81%.
OBSERVATIONS
We can see that market share of 3 dealers of Jharkhand namely Mithila Motors, Ga
jraj Vahan Pvt. Ltd. and J.M.A. Stores has increased from the year 2007 to 2008
but has decreased in the year 2009. At the same time in the rest of the two deal
ers namely Budhia Agencies and Ganpati Vehicles market share has increased conti
nuously from the year 2007 to 2009.
There is a tremendous increase in the market share of Ganpati Vehicles in both
the year ( 2007 to 2008 and 2008 to 2009) and the reason behind this is that it
is a tourist place and the main railway junction is at Jasidih (8 kms. away from
the town)
As we can see that in the year 2007 market share of TATA MAGIC is not good in en
tire state of Jharkhand and the reason behind this is, the vehicle was launched
in the year 2007.
A comparison between operating economics of TATA Magic and Three wheeler
We were sent on a live project on five different routes, we had conducted survey
on these routes. Our job was as follows
To locate the route from which the vehicle is travelling and note down the main
halts.
Check the exact distance in kilometers
Amount of time which is been taken to reach the destination
Total fair been collected
Number of average passengers who were travelling
Mean while we also had to communicate with the driver and find out
life of the tyre
Price of each Tyre
In how may kilometers it gets changed
What other purposes is the vehicle been used i.e. in marriages etc
Highest number of passengers the vehicle has ever accommodated
Average income per day
Owner’s cut
To make our survey more easy we travelled the route once with TATA Magic and onc
e with three wheeler.
KUTCHARY to DHURVA
Earnings Actual Magic Minidoor Expected
Magic Minidoor
Legal Seating Capacity 7 6 Legal Seating Capacity
7 6
Actual No of Passengers 10 9 Actual No of Passengers
14 11
One side Distance 16 16 One side Distance
16 16
No of return trips per day 4 4 No of return tr
ips per day 4 4
Total Distance per day 128 128 Total Distance per day
128 128
Fare one side/person 10 10 Fare one side/person
10 10
Total Earnings per day 800 720 Total Earnings per day
1120 880
Fixed Cost
Price 293000 215000 Price 293000 215000
Registration 4500 4000 Registration 4500 4000
Insurance 11000 8500 Insurance 11000 8500
On-Road Price 308500 227500 On-Road Price 308500 227500
Funding (70%) 215950 159250 Funding (70%) 215950 159250
Rate of Interest (Flat) 11.00% 11.00% Rate of Interest (Flat)
11.00% 11.00%
Tenure of Loan 4 4 Tenure of Loan 4 4
EMI 6479 4778 EMI 6479 4778
Fixed Cost per day 216 159 Fixed Cost per day
216 159
Variable cost
Fuel Mileage 14 18 Fuel Mileage 14 18
Fuel Price 38 38 Fuel Price 38 38
Fuel Cost/ km 2.71 2.11 Fuel Cost/ km 2.71 2.11
Tyre Life 70000 60000 Tyre Life 70000 60000
Cost of one Tyre 2000 2000 Cost of one Tyre
2000 2000
No. of Tyres 4 3 No. of Tyres 4 3
Tyre Cost per km 0.11 0.10 Tyre Cost per km
0.11 0.10
Maintenance/ km 0.25 0.40 Maintenance/ km 0.25 0.40
Variable cost per day 394 334 Variable cost per day
394 334
Total Cost per day 614 493 Total Cost per day
610 493
Profit per day 186 227 Profit per day 510 387
Profit per month 5580 6796 Profit per month
15300 11596
Kutchary to Dhurva
Distance - 16Km
Duration – 60 minutes
Fair - Rs. 10
TATA Magic Minidor
Mileage 14 18
Average Passenger 8 9
Number of trips 5 5
Kutchary Lalpur Kantatoli Station More Overbridge Ag m
ore Birsa Chowk golchakkar
Jail More dangra toil Bahu Bazar Sujata Post Office Hino
o Chowk Vidhan Sbha Dhurva
REMARKS
Three wheeler customer feedback about Magic
1. Being a TATA product it might work
2. Comparatively not as good as Minidor, the earning is more in Minidor
3. Mileage of Magic is the key problem
Are the 3-W earning there: YES
Would Magic be viable vehicle for them:
Yes, Magic will be a viable vehicle for them in this route; it still has a capac
ity to fill 3 more passengers, which would increase their profit by more than 50
%, whereas Minidor can occupy just one more passenger.
Any prospect: NO
Income per day as per the driver/owner (excluding fuel)
Magic- 600
Minidor-500
KUTCHARY to RAMPUR
Earnings Actual Magic Minidor Expected Magic Minidor
7 6
14 11
16 16
ips per day 4 4
128 128
15 15
1680 1320
Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250
11.00% 11.00%
EMI 6479 4778 EMI 6479 4778
216 159
Variable Cost
2000 2000
0.11 0.09
351 333
567 492
33384 24825
Distance - 16Km
Fair - Rs. 15
TATA Magic Minidor
Mileage 14 18
Number of trips 6 4
Kutchary Lalpur Kantatoli Lawdih Chowk P.Office Acadmic council
Sidrol Rampur
Jail More Dandatoli Shamlang Crossing Sadabaha
r Bargoma ITI
3-W customer s Feedback about Magic:
1. Its earning good because in highways you can observe there are too many
TATA Magic running
2. Existence of Magic has not hampered our business.
3. Its good to see healthy competition
YES, as per the data we can see that Magic is earning higher than Minidor and ha
s the abilty to earn more in it s full capacity. This route is also preferable b
ecause there are huge number Male and Female labours coming from villages in thi
s route to work in city every day. And the base reality is 30 of them travel in
one particular vehicle and they pay Rs.5 each which would make a total of Rs.15
0 at one go and the same people come back too therefore the conclusion derived i
s, in one particular trip Magic is earning Rs.300.
Any prospect: NO
Magic – 700
Minidor – 500
KUTCHARY to NAMKOM
Earnings Actual Magic Minidoor Expected Magic
Minidoor
7 6
14 11
13 13
ips per day 5 5
130 130
10 10
1400 1100
Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250
11.00% 11.00%
EMI 6479 4778 EMI 6479 4778
216 159
Variable Cost
2000 2000
0.11 0.10
407 352
623 512
23320 17649
Distance - 13Km
Fair - Rs. 10
TATA Magic Minidor
Mileage 14 18
Number of trips 5 5
Kutchary Lalpur Kantatoli Lawdih Chowk P.Office
Namkom Bazar
Jail More Dandatoli Shamlang Crossing

Sadabahar
1. If Magic and minidor both are on stand people prefer to occupy seat in M
inidor than Magic reason not specified
2. Magic is also doing equally good business
3. Leg space is more in Minidor than Magic
Are the 3-W earning there: YSE
Yes Magic is a viable vehicle for them as we can see that the difference in prof
it is not much and which can easily be achieved. If they just move 3 Km ahead fr
om Namkom to Rampur they can get many passengers as there are limited number of
commercial vehicles running in this route and there are people who come to city
every day for various reasons. And fair charged till Rampur is also higher in co
mpare to Dhurva and Hatia they charge Rs.10 for 16 and 20 Km respectively wherea
s Rampur is also 16Km but the fair is Rs.15
Any prospect: NO
Magic -700
Minidor - 500
KUTCHARY to HATIA
Earnings Actual Magic Minidor Expected Magic Minidor
7 6
14 11
20 20
ips per day 4 4
160 160
10 10
1120 880
Fixed Cost
Price 293000 215000 Price 293000 215000
Funding (70%) 215950 159250 Funding (70%) 215950 159250
11.00% 11.00%
EMI 6479 4778 EMI 6479 4778
216 159
Variable Cost
2000 2000
0.11 0.10
493 418
709 577
12344 9089
Kutchary to Hatia
Distance - 20Km
Fair - Rs. 10
TATA Magic Minidor
Mileage 14 18
Number of trips 4 4
Kutchary Lalpur Kantatoli Station More Overbridge Ag m

ore Birsa Chowk Hatia Bazaar
Jail More dangda toil Bahu Bazar Sujata Post Office

Hinoo Chowk Hatia Station
1. This route has potential market for magic
2. No threat from magic.
3. People travelling short distance does not prefer magic
No, In this particular route Magic is not preferable because the distance is 20k
m and the fair is just Rs.10. Taking mileage into consideration the profit is ge
tting hampered.
Any prospect: NO
Magic - 500
Minidor - 600
Earnings Actual Magic Piaggio Expected Magic Piaggio
7 3
12 8
40 40
ips per day 2 2
160 160
30 30
1440 960
Fixed Cost
Price 293000 156000 Price 293000 156000
Funding (70%) 215950 117950 Funding (70%) 215950 117950
11.00% 11.00%
EMI 6479 3539 EMI 6479 3539
216 118
Variable Cost
2000 2000
0.11 0.09
464 272
680 390
22813 17103
ITI to BHARNO
Distance - 40Km
Duration – 2hrs
Fair - Rs. 30
TATA Magic Piaggio
Mileage 15 27
Number of trips 2 2
ITI More Itki More Ga
rhgaon Bharno
Nagri
Kurgi Bedo
Remarks
1. Village people by seeing the look of Magic thinks that Magic would charge hig
h rate for the same route.
2. Magic is performing well because it has good speed so it covers the distance
much quicker.
3. It can accommodate more passengers at a time so two trips per day is also suf
ficient for Magic
Yes, Magic in this route is perfectly suitable as it is travelling a longer dist
ance on a traffic free route therefore the vehicle is also giving good mileage.
And the fair being charged is pretty good. If it runs in it s full capacity in t
his route the vehicle owners can make a huge profit.
Any prospect: NO
Magic - 450
Piaggio -550
FINDINGS
As I worked on this project, I came across many things. This was really good lea
rning for me. My findings while working on this project are:
CHALLENGES FACED
1. LOW PICK UP:
Low-pick up was the major problem that was faced by the customers. Customers exp
ected that being a vehicle of TATA Motors and four wheeler vehicles it should ha
ve more pick up
2. GEAR BOX :
Gear shifting was also one of the problems faced by the customers. The complaint
was that when gear shifts from 2nd to 3rd it creates some problem. Few said tha
t the height of the gear box is bit high if it would have been in the level of t
he seat they could accommodate one person in the front.
3. COLOUR :
There were very few customers came up with colour problem. They said that, as au
to or other six- seaters are in market since a long time and are of yellow and b
rown/ black colour this has created an image that commercial passenger vehicle i
s only of yellow and brown/black colour. Thus people generally do not approach T
ATA Magic (red and white colour) in the areas where the product is not familiar.
Passenger thinks that it is a private vehicle.
4. MILEAGE :
Average mileage of the vehicle is coming between 14-16 because of which many con
sumers are not satisfied.
5. AVERAGE EARNING:
In short routes the competitor of Magic earns more but in long routes Magic’s aver
age earning is more and hence Magic is more viable in long routes .
ADVANTAGES
1. Beneficial in long routes:
In our survey we can analyze that Magic running in long distance is in much prof
it when compared to other vehicles.
2. Tyre:
Tyre life, of Magic is more than the other vehicle which certainly decreases the
variable cost in long run.
3. Drivers comfort:
Driver has his separate independent seat which increases his driving comfort. On
e of the respondents said that “ I have my own seat so I don’t face any problem in d
riving if the number of passengers are more than 20 also (which sometimes happen
) they adjust themselves anyhow and my responsibility is to drop them safe”
4. Shower proof:
On rainy season customers will prefer Magic over Minidor as it has gone through
the shower proof test successfully, so chances of customers getting wet or even
spoiling their clothes is minimal.
5. Noise free:
Compare to other three wheeler Tata Magic advance engine make less noise and mak
e travelling more comfortable, unlike other three wheeler Tata magic does not ha
ve engine at back and therefore makes less noise and does not irritate the passe
ngers.
6. Comfortable seats:
Tata Magic wide seats provide good seating comfort to the passengers , the leg s
pace in Tata Magic is more compared to other three wheelers .This is very necess
ary for long distance routes .
The cushion of the seats is better than other three wheelers and therefore provi
des better seating comfort to the passenger.
STRATEGIC RECOMMENDATIONS:
As per our survey in various auto stands in Ranchi & nearby areas and the respon
ses been collected from different auto drivers and the owners. We found out that
TATA Magic’s target customers are both the owner as well as the passengers. They
both have different mind sets regarding Magic. The buyers of TATA Magic has purc
hased the vehicle looking at it looks, safety features and overall comfort of th
e passengers and due to these features company charges higher price. But the rea
l challenge is that the passenger does not value these features in the city rout
es because they travel a very short distance and these features hardly matter to
them.We would like to give the following suggestions to my project guide regard
ing the viability of TATA MAGIC in different routes at Ranchi:
TECHNICAL ISSUES:
• Improve pickup
• Height of gear box should be in the level of the seat
• Improve mileage
MARKETING STRATEGIES
• Create new segment like educational institute and small nursing homes
• Should provide live demos in the potential routes, by providing Magic and fuel a
nd letting them keep the earning of that trip.
• Making customers aware about the operating economic in the potential routes
• Offer Magic in more colours like yellow and green
• Exchange facility should be provided
FINANCIAL ISSUES
• Decrease the percentage of down payment from 30% to 25%
• Reduce Equated Monthly Installments.
CONCLUSION
After going through the training period and conducting rigorous survey from vari
ous consumers of TATA Magic and its competitor we came to know the various facto
rs responsible for the success and failure of TATA MAGIC and their competitors.
We also came to know the various perception of TATA Magic from the customer and
the customer of the competitor brand in this particular segment.
Being the student of marketing the entire training taught me the various practic
al aspects to be taken into account for increasing the sales of commercial vehic
les and the factors which must be improved to make TATA Magic viable in various
routes in Ranchi. The project gave us an insight into sales market of the vehicl
es of TATA Magic, what strategies are adopted by them and their competitors. An
overview of the corporate life was presented to us.
We not only learnt the real situation of the automobile sector but also gained p
ractical knowledge and experience.
ANNEXURES
ANNEXURE 1:-
Stand Survey
1. Stand Location-______________________
2. Name- ____________________________________________
3-Address- _______________________________________________
_______________________________________________
4. Contact No. - ____________________________
5. Model/Make-__________________________
6. Vehicle No.-___________________
7. Actual passenger capacity- (a) 6 (b)8 (c)10
(d)12 (e)14 (f)above 14
8. Route-____________________________
9. One way distance (Km)-____________
10. No. of trips- (a)1 (b)2 (c)3 (d)4 (e)
5 (f)above 5
9. Mileage-(a) 10-15 (b)15-20 (c)20-25 (d)25-30
10. Financed- Yes No Installment-__________________
11. Respondent- Owner Driver
12. Average Daily income- (a) below 200 (b) 200-400 (c) 4
00-600 (d) 600-800
(e) Above 800
13. Owners Cut-_________
14.Tyre life-______________Km
15. Feedback-___________________________________________________________________
ANNEXURE 2:-
1. Design of TATA Magic is good than its competitors.
A. Strongly disagree B.Somewhat disagree C.Disagree
D.Somewhat agree E.Agree F.strongly agree
2. Seating capacity of TATA Magic is better than its competitors.
A. Strongly agree b. B. Somewhat disagree
3. Pickup of TATA Magic is better than its competitors.
A. Strongly disagree B.Somewhat disagree C.
Disagree
d.Somewhat agree
4 Speed of TATA Magic is better than its competitors.
A.Agree B.Strongly Agree
5. Comfort ability of TATA Magic is better than its competitors.
A. Can’t say B.Somewhat agree C.Agree
D.Strongly agree
6.Durability of TATA Magic is More than its competitiors.
D.Strongly agree
7.Profitability of TATA Magic is more than its competitors
D.Strongly agree
8. Safety of TATA Magic is better than its competitors.
A.Somewhat agree B.Agree C.strongly agr
ee
9.Increase in social status is more in TATA Magic than competitors.
A.Somewhat agree B.Agree
C.Strongly agree
10.Service at service station is better than its competitior.
A. can’t say B.Somewhat disagree c.Agree
D.Somewhat disagree
11.Mielage of TATA Magic is more than its competitors.
A. Somewhat disagree B.Somewhat agree
C.Agree
D. Strongly Agree
12 Brakes of TATA Magic are better than its competitors.
A.Somewhat agree B. Agree C. Strongly agree
COMPARATIVE EXPERIENCE ON A PERCEPTUAL BASIS WITH MARKET LEADER

Features Strongly Disagree Disagree Somewhat Disagree
Can’t Say Somewhat Agree Agree Strongly Agree
1.Design 1 2 3 4 5 6 7
2.Seating Capacity
1 2 3 4 5 6 7
3.Pick up
1 2 3 4 5 6 7
4.Speed
1 2 3 4 5 6 7
5.Comfortability
Driver 1 2 3 4 5 6 7
5.Comfortability
Passenger 1 2 3 4 5 6 7
6.Durability 1 2 3 4 5 6 7
7.Tyres
1 2 3 4 5 6 7
8.Safety
1 2 3 4 5 6 7
9.Increase in Social Status
1 2 3 4 5 6 7
10.Service Station
1 2 3 4 5 6 7
REFERENCES
BOOKS:
• Principles of marketing by Philips Kotler.
• Research Methodology by C. Kothari
MAGAZINES & News-papers & Pamphlets:
• Business Standards.
• The Economic Times.
• Business world.
• Company pamphlets.
WEB SITES:
• Magic-tatamotors.com.
• www.siam.com
• carblogindia.com.
• autosmaxabout.com.
• auto.indiamart.com.

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SUMMER INTERNSHIP PROJECT REPORT

SUMMER INTERNSHIP PROJECT REPORT

Institute of Productivity & Management

SUMAN KUMAR RAY

THE INDIAN AUTOMOBILE INDUSTRY 7

PRODUCT LINE OF TATA MOTORS LIMITED 19

PRODUCT PROFILE (TATA MAGIC) 21

SWOT ANALYSIS OF TATA MAGIC 24

METHODS OF DATA COLLECTION 29

OPERATING ECONOMIES COMPARISION 65

CURRENT SCENARIO OF INDIAN AUTOMOBILE INDUSTRY:

*Source: SIAM (Society Of Indian Automobile Manufacturers)

Core Purpose, Value and Vision & Mission

PRODUCT LINE OF TATA MOTORS LIMITED

PRODUCT PROFILE (TATA MAGIC)

TATA MAGIC PASSENGER

METHODS OF DATA COLLECTION

Qualitative Analysis of the data collected:

Personal interviews and informal discussions.

1. No. of vehicles surveyed in different stands:-

Type of vehicle In percentage In numbers

Type of respondent In percentage In numbers

4. Average. number of passengers:-

Type of vehicle Avg. Number of passengers

Type of vehicle Km/per liter

9. INCREASE IN SOCIAL STATUS:

3. GAJRAJ VAHAN Pvt. Ltd:

Jail More Dandatoli Shamlang Crossing

Kutchary Lalpur Kantatoli Station More Overbridge Ag m

Jail More dangda toil Bahu Bazar Sujata Post Office

COMPARATIVE EXPERIENCE ON A PERCEPTUAL BASIS WITH MARKET LEADER

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