CHAPTER I Introduction

India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and Indias importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the center of Indias new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturers product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain. India eyes 25 million automotive jobs. India's GDP is set to double over the next decade In percentage terms, the automotive industry's contribution double. In dollar terms, the sector's contribution is set to quadruple to some $145bn With the worlds second largest and fastest-growing population, there is no denying Indias potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a welldeveloped components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers. Historical back ground should also

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. 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. 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. 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.

Company profile
The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. Tata motors passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2005-2009, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2008from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called A share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle The Ford Motor Companys.

TELCO (TATA Engineering and Locomotive Company) Multinational Corporation. Headquarters in Mumbai. India's largest passenger automobile and commercial vehicle manufacturing company. World's 19th largest automaker. Sales: 19,654.41cr. Stock price: Rs. 347

In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It had also developed the capability of designing, testing and manufacturing such vehicles.

Leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments.

With the Launch of Tata Indica, a Euro 2 compliant vehicle is the countrys first indigenously designed, developed and manufactured passenger car.

With the launch of Tata nano, Tata has penetrated the market to its extreme by making a car available for Rs. 132000 only. This is the cheapest car in India till date and with the announcement of its diesel variant it has made potential buyers to eagerly wait for it.

Currents facts

Today Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. Another more important way of advertising is to create an image or brand image. Take BMW Z3 for example, it was introduced in 1996 and shortly the car has been used in the famous James Bond movie. Over the years Tata Motors have been successful in creating their brand image.

The packaging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One of these innovations is the Tata Safari 4X4 Dicor that has Reverse Guide System. A weather-proof camera is fixed to the rear car to help the driver while reversing the car.

There are various factors to determine a price of a car. These factors are such as market condition (it cant be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost incurred to build a car, profit by company, dealer profit. Giving discount every month and special promotion for certain type of vehicle also one of the strong

strategy use by Tata Motors. Discount can be made from Companys profit or from dealers profit at certain range.

Place of dealership does play an important role. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership.

The industry witnessed a change in demand dynamics in last few years. The demand for LCVs in the <=3.5 tones segment is rising at the cost of demand in 5 to 7.5 tones category, while demand in 7.5 to 12 tones segment and 16.2 to 25 tones segment is booming at the cost of demand in 12 to 16.2 tones segment. Demand for trailers of >35.2 tones is witnessing a surge while demand for semi-trailers in 26.4 to 35.2 tones segment is suffering. This structural shift in demand dynamics is due to the evolution of Hub & Spoke model of distribution, which is now adopted by transportation players because of improved road infrastructure and also the ban on trucks in many cities by the authorities to tackle the traffic congestion issues. According to the Hub & Spoke model, HCVs plying over the highways to transport goods to different states and districts, while MCVs are used in distributing goods to different cities and the last leg of distribution in intra city is done by using <=3.5 tonner vehicles

GLOBAL OPERATIONS
Tata Motors has been aggressively acquiring foreign brands to increase its global presence. 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 acquired in 2008. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Koreas 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, giving it controlling rights of the company. Hispanos presence

is being expanded in other markets. On Tata's journey to make an international foot print, it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. They will debut in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. In 2006, it formed a joint venture with the Brazil-based Marco polo, 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 has expanded its production and assembly operations to several other countries including South Korea, Thailand, South Africa and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern Europe. Tata also franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4 continents. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South Africa.

The Government of India announced an automobile policy in December 1997. The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Mere car assembling operations were not welcomed. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment made by it in an auto-making subsidiary in India. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts. The policy sets an export target of $1 billion by 2005 and US$2.7 billion by 2010. The policies adopted by Government will increase competition in domestic market, motivate many foreign commercial vehicle manufactures to set up shops in India, whom will make India as a production hub and export to nearest market. Thus Tata Motors CV will have to face tough competition in near future, which might affect its growth negatively.

CHAPTER II ANALYSIS I CONSUMER BUYING DECISION PROCESS

There are following five stages in consumer buying decision Process.

1. Problem identification:The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a Particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest.

2. Information Search:The consumer tries to collect information regarding various products/service. Through gathering information, the consumer learns about completing brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade fair etc. Marketers should find out the source of information and their relative degree importance to the consumers. 3. Evaluation of alternative:There is no single process used by all consumers by one consumer in all buying situations. There is several First, the consumer processes, some basic concepts are: First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

4. Choice of purchasing decision:From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy if the decision is to buy. The other additional decisions are:

Which types of bike he must buy from whom to buy a bike? How the payment to be made? And so on. The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand.

5. Post Purchase Behavior:After purchase the product, the consumer will experience the same level of product. The Marketers job not end when the product is buying must monitor post-purchase satisfaction, post-purchase action, post-purchase use and disposal.

Post Purchase Satisfaction:The buyer, S satisfaction is a function of closeness between the buyer, S expectation and the products Perceiver performance. The larger the gap between expectation and performance, the greater the consumer dissatisfaction.

Post purchase Action:The Consumer, S satisfaction or dissatisfaction with the product influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and return the product.

Post-Purchase Use or Disposal:The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

Characteristic of Buyer Behaviors

The chief characteristics of the buyers behaviors are as Follow:-

(1)

It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them.

(2)

It includes both observable activities such as walking

through the market to

examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands.

(3)

Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot.

(4)

The individuals specific behaviors in the market place is affected by internal factor, such as need , motives, perception, and attitudes, as well as by external of environment influences such as the family social groups, culture, economics and business influences.

PROBLEM DEFINATION

Consumer says something and does something. There are many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of customer on whether, what, how, and for whom to purchase the CAR. Therefore, research is required to measure present consumer buying behavior at the purchase of TATA cars. So the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the cars.

SCOPE OF STUDY

(1)The main scope of the study is depend to consumer response

(2) It also analysis the benefits accruing to the company as a result of those service.

(3) This study has been made to find the level of satisfaction the Customer has regarding the service provider by car place.

Limitations of study When the buyers are busy we cant get accurate data from them.

(1)

(2)

According to the time limit of our project we can cover only the some area.

(3)

During survey some respondents may not give answer in proper manner.

OBJECTIVES OF STUDY

(1)

To know market position of Tata automobile in the market.

(2)

To know consumer behavior for purchase of four wheeler.

Research methodology

Research Methodology: The data for the project was collected from malls, customers at showrooms, markets and from public also. Sample Size: Sample size of 60 was taken based on convenient Simple Random Sampling. Research Tools: The data was collected through Survey Questionnaire Method.

Data Collection: Data was collected through the following:-

Primary sources: Questionnaire from General public Secondary Sources: Magazines, newspapers, Internet.