Management Thesis On Tata

Designing a Brand Plan to Increase the Sales of Tata Agrico

Guided by

Submitted by

Yoginder Kataria

YOGESH KUMAR ENROLLMENT NO.

ICFAI, GURGAON

7NBGG050

1

ACKNOWLEDGEMENT

The Internship Project at TATA STEEL, Jamshedpur is an outcome of total support and encouragement provided by a number of people at TATA STEEL, a company that embodies the best practices of the Indian Corporate World. During the tenure of this project, we were fortunate to have interacted with people who in their own capacities have encouraged and guided me to make this into a learning experience. We would like to express our sincere gratitude to our project guide Mr. Yoginder Kataria , Manager-EPA (PS), Agrico for his constant and keen support at every step without which the project would not have seen the light of the day. We would also like to thank Mr. N R Saifi Manager TMDC for his all round support during the completion of the project. We also thank each and everyone, who shared their valuable information, for us to have better understanding of the system, subject and concepts which contributed immensely in the completion of this project. We solemnly express our high regards and profound sense of gratitude to our faculty guides for granting their invaluable time and energy throughout the completion of this project. We also express sincere thanks and deep gratitude to our revered institutes.

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Student declaration

We, hereby declare that this project report title as “Designing a Brand Plan to increase the sales of Tata Agrico products” has been compiled by us as part of our education curriculum.

We have not submitted this project in any other organisation or institution for any purpose whatsoever.

Jamshedpur

YOGESH KUMAR

3

Table of contents 1.

Company profile 1.1 Background 1.2 Vision 1.3 Mission statement 1.4 Policies 1.5 Core values 1.6 Products 1.7 Strategic business units

2.

Page Number 5 6 7 9 10 11 12

Tata Agrico 2.1 2.2 2.3 2.4 2.5 2.6

Introduction Product Product development process Quality Collaborations & Distributors Environmental awareness programme

13 14 20 21 23 24

3.

Executive summary

25

4.

Aim

26

5.

Market analysis 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Research objectives Methodology Methods Sample size Limitations Analysis of consumer’s survey Analysis of dealer’s survey Findings

27 27 27 28 28 29 39 47

6.

SWOT analysis

48

7.

Recommendations

50

8.

Conclusion

51

9.

Appendix 9A 9B

10.

Questionnaires for consumers Questionnaires for dealers

Bibliography

54 59 63

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COMPANY PROFILE 1.1

Background

TATA STEEL, formerly known as Tata Iron and Steel Company Ltd (TISCO), the company around which the entire township of Jamshedpur was built, was registered in Bombay (now Mumbai) on August 26, 1907. It had an initial capacity of 160,000 tonnes of pig iron, 100,000 tonnes of ingot steel, 70,000 tonnes of rails, beams and shapes and 20,000 tonnes of bars, hoops and rods. It also had a powerhouse, auxiliary facilities anda laboratory. In 1917, the company increased its steel production capacity to 500,000 tonnes and introduced the Modern Duplex process of making steel. Since then the company has continued to add new units and increase capacity. Beginning in the 1980s, the company undertook in various phases an ambitious Modernization Programme. The fist phase, between 1981 and 1985, involved a total project cost of Rs 223 crores. This phase, among other things, saw the installation of two 130 tonne LD converters, two 250 tonne a day Oxygen Plants, a bar forging machine, two vertical twin shaft lime kilns and a tar-dolo brick plant. Significantly, a six strand billet caster and a 130 tonne vacuum arc refining unit were installed, that too in the integrated steel plant. The Second Phase (1985-1992), involving a project cost of Rs. 780 crores, saw for the first time in India coal injection in blast furnaces and coke oven battery with 54 ovens using stamp-charging technology. Apart from this, a 0.3 mtpa (million tonne per annum) wire rod mill, a 2.5 mtpa sinter plant, a bedding and blending plant and a waste recycling plant of 1 mtpa were installed. The company recently commissioned its 1.2 mt (million tonne) capacity Cold Rolling Mill Complex at a project cost of Rs. 1600 crores. This Four Phase Modernization Programme has enabled Tata Steel to be equipped with the most modern steel making facilities in the world. As of today, the Tata Steel facility has a Hot Metal capacity of 3.8mtpa and a Crude Steel capacity of 3.5 mtpa, corresponding to a salable steel capacity of 3.4 mtpa.

5

It is Tata Steel’s constant endeavour to consolidate its position in the international market. World Steel Dynamics and now called as “World Class Steel Makers”. The Fifth Phase lays stress on the utilisation of the intellectual capabilities of the employees to generate sustainable value for the stakeholders. Rather than create new physical assets, the focus has now shifted to how best to use those assets to get optimum value. The human resource management division of Tata Steel has developed what is called the “mindset programme”, which is designed to bring change among the employees. The programme seeks to inculcate in the employees self awareness and a positive outlook. In order to improve its performance further the company engaged the internationally reputed consultants Mckinsey & Co, who suggested the Total Operational Performance (TOP) Enhancement Programme. A structured, time bound, team based programme, it uses the creativity and energy of the employees to increase output with minimum investment and in the shortest possible time. Tata Steel today is rapidly expanding capacity and plans to produce 15 Mt of steel annually by 2010. Tata Steel is currently ranked the world's 6th largest steel company and some of its future projects are: India: •

12 MTPA* plant in Jharkhand

•

6 MTPA plant in Orissa

•

5 MTPA plant in Chattisgarh

•

Jamshedpur Steel Works will become a 10 MTPA unit by 2010. *MTPA = million tonnes per annum

Overseas: •

Development of a source of low ash coal from Queensland, Australia

•

Ferro Chrome production in Richards Bay, South Africa

•

Coking Coal project in Mozambique

•

Development of iron ore deposits in Ivory Coast (West Africa)

•

Limestone mining project in Oman

6

1.2

Vision

To be the global steel industry benchmark for Value Creation and Corporate Citizenship and to seize the opportunities of tomorrow and create a future that will make the organization an EVA (economic value added) positive competition. To continue to improve the quality of life of our employees and the communities we serve.

Vision Production 2010 The company intends to be a 15 million ton company by the year 2010 through organic growth an acquisitions both in the country and overseas.

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1.3

Mission Statement

Consistent with the vision and values of the founder Jamshetji Tata, TATA STEEL strives to strengthen India’s industrial base through the effective utilization of men and materials. The means envisaged to achieve this are high technology and productivity consistent with modern management and practices.

TATA STEEL recognizes that while honesty and integrity are essential ingredients of a strong and stable organization, profitability provides the main spark for economic activity.

Overall the company seeks to scale the heights of excellence in all that it does in an atmosphere free from fear and one that encourages innovativeness and creativity.

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1.4

Policies

Quality Policy Tata Steel is committed to creating value for all our stakeholders by continually improving our systems and processes through innovation, involving all our employees. This policy shall form the basis of establishing and reviewing the Quality Objectives and shall be communicated across the organization. The policy will be reviewed to align with business direction and to comply with all the requirements of the Quality Management Standard. Corporate Social Responsibility Policy Tata Steel believes that the primary purpose of a business is to improve the quality of life of people. So it is committed to improve the quality of the life of the people in the areas where it operates. Environmental, Occupational Health & Safety Policy Tata Steel reaffirms its commitment to provide safe working place and clean environment to its employees and other stakeholders as an integral part of its business philosophy and values under which it will continually enhance its Environmental, Occupational Health & Safety (EHS) performance in its activities, products and services through a structured EHS management framework. Research Policy Tata Steel nurtures and encourages innovative research in a creative ambience to ensure that the competitive advantage in its overall business is retained and surpassed. Towards this goal, the Company commits itself to providing all necessary resources and facilities for use by motivated researchers of the highest caliber.

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1.5

Core Values

The TATA Group has always sought to be a value – driven organization. These values continue to direct the Group’s growth and businesses. The five core TATA values underpinning the way we do business are: •

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny.

•

Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of the communities we serve.

•

Excellence: We must constantly strive to achieve the highest possible standards in our day to day work and in the quality of the goods and services we provide.

•

Unity: We must work cohesively with our colleagues across the group and with our customers and partners around the world, building strong relationship based on tolerance, understanding and mutual cooperation.

•

Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from people goes back to the people many times over.

Striving For Excellence

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1.6

Products

Tata Steel is a global player with a balanced presence in developed European and fast growing Asian markets and with a strong position in the construction, automotive and packaging markets. Its Jamshedpur steel works produces hot and cold rolled coils and sheets, galvanised sheets, tubes, wire rods, construction rebars, rings and bearings. In an attempt to 'decommoditise' steel, the Company has introduced several branded steel products, including Tata Steelium (the world's first branded Cold Rolled Steel), Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata Bearings, Tata Structura, Tata Agrico (hand tools and implements) and Tata Wiron (galvanised wire products). In the financial year 2006-07 revenue from the sale of these branded steel products was 26% of the company's sales revenues. Corus' main operating divisions comprise Strip Products, Long Products and Distribution & Building Systems Division. Combining international expertise with local customer service, the company supplies a range of long and strip products to demanding customers worldwide in markets including the construction, automotive, packaging and engineering sectors. The NatSteel group produces construction grade steel such as rebars, cut-and-bend, mesh, precage bore pile, PC wires and PC strand. Tata Steel Thailand produces round bars and deformed bars for the construction industry.

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1.7

Strategic Business Units

Apart from the main Steel Division, Tata Steel's operations are grouped under the following Strategic Business Units: Bearings Division: Manufactures ball bearings, double row self-aligning bearings, magneto bearings, clutch release bearings and tapered roller bearings for two wheelers, fans, water pumps, etc. Ferro Alloys and Minerals Division: Operates chrome mines and has units for making ferro chrome and ferro manganese. It is one of the largest players in the global ferro chrome market. Agrico Division: Tata Agrico is the first organized manufacturer in India of hand tools and implements for application in agriculture. Tata Growth Shop (TGS): Has designed, developed, manufactured, erected and commissioned thousands of tonnes of equipment ranging from overhead cranes to high precision components, including a rocket launch pad for the Indian Space and Research Organization. Tubes Division: The biggest steel tube manufacturer with the largest market share in India, it aspires to strengthen its market presence by expanding and modernizing its commercial and precision tube manufacturing capacity. Wire Division: A pioneer in the manufacture of steel wires in India, it produces coated and uncoated wires, branded as Tata Wiron. The division also operates a wholly owned subsidiary in Sri Lanka.

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TATA AGRICO

2.1

Introduction

TATA Agrico, a division of Tata Steel is the pioneer manufacturer of superior quality agricultural implements in the country. Since 1925, it has been the leading manufacturer of Shovels, Powrahs, Crowbars, Kudalies, Pickaxe and Hammers. These implements cater to the needs of Agricultural, Horticulture Industry, Maintenance of Roads, Dams, Railway- Tracks, Collieries, etc., in India and abroad. The Division is the first manufacturer of agricultural implements (Hand tools) in India to achieve ISO: 9002 Certification in 1994. This ensures world class systems in its operations. TATA Agrico implements are manufactured in one piece from Tata High Carbon Steel by forging. The skill and knowledge acquired over half a century, modem methods of manufacture such as forging, and heat treatment and strict supervision at every stage of manufacture, guarantee consistently good quality and durability of Agrico products. The high quality of TATA Agrico implements makes them the first choice of Agriculturists, Government Agricultural Departments, The Railways, Defence Services, Collieries and Central and State Government Departments. All TATA Agrico implements are guaranteed against manufacturing defects and are distributed all over the country through a network of consignment agents and distributors.

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2.2

Products

Hoes (Powrah) (Resists deformation lasts longer) •

Forged in one piece from Tata High Carbon Steel and given a protective coating of paint

•

The eyes or sockets of the Hoes are round in shape and are slightly tapered to a nominal diameter of 45 mm at the narrow end to grip the handle firmly.

•

Agri type, Bombay type, West India, Tanged Hoe (1.6), Mysore Hoe (1.6), Swan Neck Hoe (1.8), East India type Hoes are certified as per Indian Standard Specification IS-1759.

Types of Hoes: Agri Hoe

East India Hoe

West India Hoe

Tanged Hoe

Mysore Hoe

Bombay Hoe

Swan Neck Hoe

North India Hoe

Lanka Hoe

Fork Hoe

14

Sickles (Greater output with lesser effort) •

Increases the efficiency of cutting

•

Durable and longlasting

•

Heat treated for proper hardness

•

Sharp cutting edge for effortless cutting

•

Uniformly maintained width for perfect balance

•

Perfectly seasoned hard wood handle for proper grip

•

Can be re-sharpened

Pick-Axes (Kudalis) (Both ends hardened for extra longevity) Pick-Axes are made in five varieties. Beater in one among the five varieties. •

The working ends of all Pick-Axes and Beaters are heat treated. Chisel ends and point ends are sharpened.

•

Pick-Axes and Beaters are supplied without handles.

•

The eyes or sockets of Pick-Axes and Beaters are oval in shape and are slightly tapered to about 65 mm × 40 mm at narrow end to grip the handles firmly.

•

High strength : unbeatable resistance to deformation and bending

Pick-Axes, Chisel (Wide) & Point Ends

Beater, Point & Tee Ends

15

Crowbars (Chisel point perfectly hardened needs no re-sharpening) •

All Crowbars are forged in one piece from Tata High Carbon Steel octagons and are given a protective coating of double-boiled linseed oil.

•

Crowbars are manufactured in four sizes : 22 mm, 25 mm, 29 mm and 32 mm.Short length Crowbars are made in the length of 1220 mm and 915 mm.

•

The chisel ends of Crowbars are ground and heat treated and need no resharpening

•

Unbeatable strength - highly resistant to deformation and bending

•

Designed for better gripping

Shovels (Improved curvature for better lifiting) •

Square Nose & Round Nose Shovel blades are formed in one piece from 14 gauge (2 mm approximately) Tata High Carbon Steel, which ensures longer life.

•

Shovels are available in two varieties square nose, round nose. Square Nose & Round Nose Shovel are manufactured in two sizes, round nose in one.

•

Square Nose & Round Nose Shovel are fitted with strong, steel crutched wooden handles.

16

•

All Square Nose & Round Nose Shovel blades are certified as per Bureau of Indian Standards Specification : IS 274 Part-1

•

Ensure better material handling due to improved curvature

•

Highly wear resistant, durable and retain their shape even after rugged use

Hammers (Strength that resists high impact shock) •

All hammers are forged in one piece from Tata High Carbon Steel and supplied without handles

•

The striking faces of all hammers are heat treated and chamfered

•

Hammers differentially hardened and tempered thoroughly, to achieve strength that withstands high impact shock

•

The eyes of all hammers are tapered at both ends to form a ‘waist’ at the middle to ensure firm grip

•

Properly balanced to make work easier

DOUBLE-FACE SLEDGE HAMMERS

S. B. HAMMER

TP Series Hoe (Powrah) –( Lessens fatigue, Improves output) •

Unique, scientific design that reduces fatigue, while increasing output

•

Ideal curvature of blade that ensures optimum material lifting

•

Unbeatable Durability

•

Longer lasting cutting edge

TP2 Hoe

TP4 (Jaipur) Hoe

TP5 (NI) Hoe TP7 Hoe (Ahemdabad)

17

Garden Tools: Hard working tools for beautiful gardens. Pruning Secateurs (self-locking) •

Fully hardened and tempered steel blade for lasting sharpness

•

Excellent, all-round secateurs for medium and large hands

•

Robust, comfortable, easy-grip handles in bright yellow for maximum visibility in the garden

•

Cuts up to 20 mm diameter

Garden Cultivator Width: 9 cm, Overall Length: 25 cm •

Excellent for weeding and cultivating garden soil

•

Three bright, chrome-plated, spot-welded steel tines 18

•

Ergonomically designed anti-slip poly handle

Garden Trowel: Width: 8 cm, Overall Length: 28 cm •

Wide, deep dish for maximum load

•

Excellent for digging holes to plant flowers and seeds

•

Bright, chrome-plated steel blade

•

Ergonomically designed anti-slip poly handle

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2.3

Product development process at Tata Agrico

Stage 1 - Identify the "Require ment / Bright Idea"

Stage 2 - Define the Requirements

Stage 3 - Gather product Information

Stage 4 – Business case preparation

Stage 5 - The Design Phase

Stage 6 – Prototyping

Stage 6 – Pilot Production

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Stage 7 – Marketing Trial & Feedback

Stage 8 – Commercial Launch

2.4

Quality

Customers are cautioned against spurious implements (bearing imitations of AGRICO trademark and/or hologram) that may be offered for sale. When in doubt, kindly write to any of our offices.

1. Look carefully for the Tata Agrico Trademark engraved on the implement. 2. The year of manufacture and item code given below the circle changes every year. 3. The TATA mark appears on the holograms of all Shovels, Powrahs, Mamooties, Kudalis, Sickles and Hammers.The eagle insignia can be seen in the hologram. 4. The word TATA is embossed on Powrahs, Kudalis, Beaters, Sickles and Shovels. 5. Weight stamp appears on all items 6. The words ‘TATA CHISEL STEEL’ 22/25/29/32 are engraved on Crowbars.

21

Note: The weights and dimensions of implements given in this catalogue are nominal and are governed by the respective Indian Standards Specification.

2.5

Collaboration & Distributors

Tie up with Tata Kisan Sansar of Tata Chemicals Ltd

Tie up with Godrej Agrovet Limited (AADHAR)

Tie up ITC's e-choupal network and the Choupal Sagar network

Tie up with Hariyali Kisaan Bazaaar

Tata Agrico has entered into a distribution alliance with ITC to market its agricultural implements in rural India through ITC's e-choupal network and the Choupal Sagar network. This will help rural consumers get genuine Tata Agrico implements at the right price. Tata Agrico is a division of Tata Steel. While the e-choupal is billed as India's largest network, choupal sagar is the rural hypermarket which provides multiple services under a single roof. It gives farmers a platform to buy and sell products, according to a release.

22

Tata Agrico, the agriculture implement division of Tata Steel Ltd, has recently entered into a business venture with Godrej Agrovet Ltd. Under this venture, Tata Agrico's products would be made available in all 22 Aadhaar outlets across the country with products such as powrah and sickle for the farmer community. "The main objective of this business venture of Tata Agrico is to reach out to the farmer community with its wide variety of products in the rural interiors of the country. Farmers will now have the easy availability of Tata Agrico products at reasonable prices," a press release said. Tata Agrico manufacturers’ agricultural implements such as powrah, kudali, shovel, crowbar, hammer and sickle. Tata Agrico will be conducting demonstrations among farmers at the Aaadhar outlets on the use of its products and would take suggestions for future designing of these products.

All India distributors Tata Agrico is having distribution network all over the country. In north India, it covers the regions like Kanpur, Delhi, Jaipur, Nainital, Karnal, Jammu and Himachal Pradesh. In the eastern part, it is having network in Kolkata, Siliguri, Berhampur, Bhubaneshwar and also covers Guwahati in North-East India. In the west, it covers Indore, Rajkot, Surat, Raipur, Nagpur, Aurangabad, Ahmednagar and other parts of Maharashtra also. In southern part, it covers Hyderabad, Vijaywada, Madurai, Bangalore,Trichy, Shimoga, Cochin, Chennai and also many more places.

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2.6

Environmental awareness programmes by Tata Agrico

TATA Agrico is participating in environment awareness program under the banner of "My Green World" in prominent english medium schools at Kolkata.

24

EXECUTIVE SUMMARY It is my great pleasure to work on this project and to develop the brand equity of the existing product of the Tata Agrico. It gives me lot of learning experience as well as the thought how to build a brand and what are the step require for it. Today the world of business is place where changes are constant and innovation the key to success. Branding is one kind of innovation which if implemented, the customer are never short of further knowledge and information bout the product. Brands are the powerful asset that must be carefully developed and managed. Brands are the hearts of any business. It is through branding, companies maintains customer loyalty, attracts and nurture new market segment, gets price stability and satisfies customer profitably and managers to earn high revenue. So related to it, my project topic was “to develop the brand equity for the existing product of Tata Agrico”, a division of Tata Steel. In this way I did the survey that answered brand awareness, dealer perception and consumer perception about the product of Tata Agrico. The survey was done in Jamshedpur. To be a brand lots of suggestion and recommendation has been given in this project that if implemented will surely be help out Tata Agrico to become a brand leader.

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AIM

The aim of my project at Tata Agrico (A Division of Tata Steel) •

To study the existing products in the market at Jamshedpur and analyse the current situation of the market.

•

Design a Brand plan to increase the sales of Tata Agrico products.

•

Provide suggestion to improve the sales.

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Market Analysis 5.1

Research Objectives 1. To study how customers perceive about the Tata Agrico products. 2. To identify the factors that influence the buyers to buy and non- buyers not to buy the Tata Agrico products. 3. To examine the effectiveness of various promotional activities on sales. 4. To study how dealers perceive about the Tata Agrico products.

5.2

Methodology Sources of data •

The data is basically primary in nature.

•

It is obtained from the dealers and consumers (farmers, labourers, contractors and gardeners) of Jamshedpur and Dhanbad.

5.3

Methods •

Our communication approach was basically structured questioning, that is personal interview with the aid of printed questionnaires.

•

To serve our purposes, we designed two separate questionnaires for the consumers and the dealers. Each questionnaire was designed in a manner so as

27

to gain the maximum relevant information from the respondent taking minimum of their time.

5.4

Sample size •

Convenience sampling: No sampling technique was employed in arriving at a sample size; it is a convenience sampling suiting our use.

5.5

•

Consumer sample size – 40

•

Dealer sample size – 25

Limitations 1. This being a convenience sample, the analysis may not be a true picture of the target population. 2. Prejudice of some of the respondents. 3. Low sample size of the dealers- that is, we could not find more than 15 who were able to answer our questions in the areas surveyed. 4. Not much of the importance was attached to this task by some of he households. In some cases, we were given contradictory answers, which seemed to show that they are trying to get over with the interview as soon as possible.

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5.6

Analysis of consumer survey

1. Tools which are mostly in use

100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

5

3 4

12

7

35

9

6 1

10

7

18

12

Crowbars 1

34 7 11

Gardener tools

17

Sickles Hammer

17

24

11

0%

14 4 1

Pick-axes 7 1

5

Shovels Hoes

1 1

Rank Rank Rank Rank Rank Rank Rank 0 1 2 3 4 5 6

Fig 1: Showing the rank wise distribution of different tools It is clear from the graph that people are using Hoes and Shovels in maximum numbers. Both are used in construction, farming and in many places. So they are highly in demand in the market. Gardener tools are not having that much share of the market as they are least in use.

29

2. Awareness of Tata Agrico product Sample size- 40 Valid

Yes No Total

Frequency

Percent

32 8 40

80.0 20.0 100.0 Aware/Not-Aware

20%

Yes No

80%

Figure 2 – Graph showing the aware and not aware percentage 80% of the respondents are aware of Tata agrico products while 20% of them are not. 3. Users of the Tata Agrico product Sample size - 40 Valid

Yes No Total

Frequency

Percent

21 19 40

52.5 47.5 100.0

30

User/Not-user

48% Yes No 52%

Figure 3 – Graph showing percentage of consumers which are user 52% of the respondents are users of Tata Agrico product and 48% of them are nonusers. 4. Tata Agrico product which are mostly in use

Valid

Tata hoes Tata shovel Tata Pick-axes Tata Hammer Tata Garden Tools None Total

Frequency

Percent

9 2 1 7 2 19 40

22.5 5.0 2.5 17.5 5.0 47.5 100.0

31

Figure 4 – Bar chart showing frequencies of uses of different products. It is clear from the chart that the people are mostly using the hoes and the hammers. As Tata is the only manufacturer of hammer, so it is having an edge over others in this category.

5. Competitors of Tata Agrico

Valid

SRG India Kinger Hurkut Others Total

Frequency

Percent

24 5 4 7 40

60.0 12.5 10.0 17.5 100.0

From the table and graph it can be clearly inferred that SRG India is the toughest competitor to Tata Agrico products according to consumer’s perception.

32

Figure 5 - Competitors present in the market. 6. Satisfaction level with the Tata Agrico products ( For users only) From the survey we can clearly say that the consumers are satisfied by the products as all the 21 users of the products mentioned satisfaction in the survey.

7. Influencing factors in buying the tools

33

9 8 7 6 5

User

4

Non-user

3 2 1

Pr ice

ra nc e

Ap pe a

Q

ua l

ity

y Du ra bi lit

an ce

Pe rfo rm

Re lia bi lity

Br an d

Im

ag e

0

Figure 6 – Influencing factor for the user and non-user It is found that the non-users have not purchased Tata Agrico products because of dissatisfaction and prejudice about the quality of the product after the outsourcing of the manufacturing of the product. For users, quality, durability and brand image are the factors that influenced the purchase of the Tata Agrico products.

8. Promotional activities and various schemes associated with Tata Agrico products Promotional Awareness Valid

Frequency

Percent

Yes

10

25.0

No Total

30

75.0

40

100.0

34

Figure 7 – Promotional awareness about the product 75% consumers were not known about any of the promotional activities by the Tata Agrico, only 25% said yes and they have seen some hoardings and banners but they have seen it in very small amount and in very few places. About schemes all the respondents are not known about any of the schemes provided by the Tata Agrico product. 9. Suggestions by the consumers to improve the sales. Suggestions given by consumers Frequency Valid

Availability 6 Schemes for consumers 18 Price 16 Total 40

Percent 15.0 45.0 40.0 100.0

35

Figure 8 – Suggestions given by the consumers According to the table and graph it can be clearly inferred that respondents want some schemes for them and after that slight decrease in price so that the product will be in the reach of the consumers. 10. Frequency and quantity of purchasing tools Frequency of purchasing tools Valid

Quarterly Half-yearly Yearly Total

Frequency

Percent

8 20 12 40

20.0 50.0 30.0 100.0 Quantity Purchased at single time

Valid

1-5 6-10 11-15 15> Total

Frequency

Percent

28 10 1 1 40

70.0 25.0 2.5 2.5 100.0

36

From the graph you can easily interpret that the respondents are purchasing the tools Half-yearly and the quantity should be (1-5) according to the survey done.

Demographics: 37

Age Age Group of consumer <25 25-34 35-44 45> Total

Valid

Frequency

Percent

4 16 14 6 40

10.0 40.0 35.0 15.0 100.0 Age Group

16

16

14

14 12 10 8

Age Group

6

6 4

4 2 0

<25

26-34

35-44

>44

Occupation Consumers contacted Valid Farmers Labours Contractors Gardeners Total

Frequency

Percent

8 8 19 5 40

20.0 20.0 47.5 12.5 100.0

38

Occupation 19

20 18 16 14 12 10 8

8

Occupation

8 5

6 4 2 0 Farmers

Labourous

Contractors

Gardeners

Monthly Income Income of consumer <5000 5001-10000 1000115000 15000> Total

Valid

Frequency

Percent

12 20

30.0 50.0

6

15.0

2 40

5.0 100.0

Income Group

>15000

2

6

10001-15000

Income Group 5001-10000

20

12

<5000 0

5.7

5

10

15

20

25

Analysis of Dealer survey

39

The survey is done in Jamshedpur and Dhanbad cities. The area is divided into four parts for the sample of the dealers. The four areas are Sakchi, Mango, Bistupur and Golmuri. Dhanbad accounts for 40% of the sample and the remaining 60% is covered by Jamshedpur region.

Share of different region in sample

12% Golmuri

40%

Sakchi

24%

Mango Bistupur Dhanbad

4% 20%

1. Factors influencing customer’s purchase decision according to the dealers. Rank 1 Brand 14 Reliability 2 Performance 3 Durability 6

Rank 2 6 2 7 10

Rank 3 5 6 10 4

Rank 4 0 15 5 5

100% 90% 80% 70% Durability

60%

Performance

50%

Reliability

40%

Brand

30% 20% 10% 0% Rank 1

Rank 2

Rank 3

Rank 4

40

We can say by looking at the table and the chart that the maximum no of dealers staed that they are giving preference to the brand image after that durability, performance and than reliability. 2. Ranking of the products in order of demand from customers. 100% 90% 80% Crowbars

70%

Sickles

60%

Hammers

50%

Pick axes

40%

Shovels

30%

Hoes

20% 10% 0% Rank 1

Rank 2

Rank 3

Rank 4

Rank 5

Rank 6

According to survey the Shovels are highly in demand than follows by the Hoes. It is clear from the above bar chart which is showing the ranking of the products. 3. Customers of the products Customers of product

9%

23%

Contractors Labourous Farmers 68%

According to the dealers almost 70% of the sales are made by the contractor, which is followed by the labourers, farmers having 23% and 9% share respectively.

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4. Percentage of Tata Agrico in total sales of tools. Sales of Tata Agrico Valid

0-25 25-50 Total

Frequency

Percent

15 10 25

60.0 40.0 100.0

80% of the respondents said that Tata Agrico has 0-25 percent share of the sales in heir total sales in a year And 405 said it is between 25-50%. 6

Aware of any promotional activity. Almost every respondents said that they are not aware any promotional activity by the Tata Agrico.

7

The effect of promotional activities on sales according to dealers Commercial effect on sales Frequency

Valid

Increase in sales 18 No change in 7 sales Total 25

Percent 72 28 100.0

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Effect of promotional activity

28% Increase in sales No change in sales 72%

72% of the respondents feel that the promotional activity will increase the sales and 28% stated that it will not affect the sales.

7. The preferring media for advertisement according to dealers Medias for advertisement

Newspaper Radio Hoarding Total

Valid

Frequency

Percent

5 8 12 25

20 32 48 100.0

Striking media for promotional activity

Hoarding

Radio

Series1

Newspaper 0

Series1

2

4

6

8

10

12

Newspaper

Radio

Hoarding

5

8

12

14

43

After the survey it is clear from the graph that the Hoarding is the striking media for the promotional activity in villages and semi urban areas followed by the Radio and Newspaper.

8. Tata Agrico as a brand. About brand Frequency

Percent

Successful 18 Un-Successful 7 Total 25

Valid

72 28 100.0

Percantage

28%

Successful Un-Successful

72%

87% of the respondents feel that Tata Agrico is a successful brand. Rest 13% find it to be unsuccessful. 9. Factors behind the Tata Agrico being a successful brand/unsuccessful brand Successful

frequency

Percentage

Brand name

10

55.5

Range of product

2

11.1

Quality

6

33.3

44

Reason for success

33% Brand name Range of product 56%

Quality

11%

As far as the reasons for Tata Agrico being a successful brand is concern, 56% of the consumers feel that the success is due to the Brand name of Tata, 32% feel its due to the quality of the product and the rest 12% feel that its due to the range of the product.

Unsuccessful

Frequency

Percentage

Promotional Activity

2

28.5

Price

5

71.4

Reason for non-success

29% Promotional Activity Price 71%

Among the people ,who feel that the Tata Agrico is an unsuccessful brand, they are not satisfied in the promotional activity and in the price term.

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10. Toughest competitor to Tata Agrio product. Toughest Competitor for Tata Agrico Frequency

Percent

SRG India

15

60

Kinger

3

12

Hurkut

1

4

Others

6

24

SRG India is found to be the toughest competitor to Tata Agrico covering almost 60% of the graph area. Toughest competitor for Tata Agrico

12% 4% SRG India Kinger 24%

Hurkut Others

60%

11. Satisfaction level of the service provided by the distributor.

Valid

Satisfied Not-Satisfied Total

Frequency

Percent

10 15 25

40.0 60.0 100.0

46

Almost 60% are not satisfied by the service provided by the distributor.

47

5.8

Findings

1. During our research process we found that majority of the Consumers find the brand to be successful they have not actually bought it , because of the following reasons: •

At the time of their purchase either the other brands had come out with better promotional schemes and in reasonable price.

•

Some times they are not able to find the product so what ever is present at that moment they buy that.

Dealers even find the brand to be successful but because of some reasons they are not promoting that. o Price is very high as compared to the other competitors. o Service provided by the distributor is not good. o Dealer’s incentive is very less. 2. As discussed above there are many factors which are taken into consideration while making a decision to purchase the product like: Quality Price Brand image Durability and performance 3. As there are no promotional activities are present in the market so the company have to work on that.

48

SWOT Analysis 6.1

Strength

A. Tata’s Brand image: It is a big strength of Tata Agrico that it is a branch of Tata Steel which has been successfully doing business for a century. B. Quality: Tata Agrico has maintained a reputation in market for its quality as compared to its competitive brands. C. Raw materials: Raw materials for Tata Agrico products are produced by Tata Steel and thus they have an edge over any problems related to raw material handling.

6.2

Weakness

A. High price: The prices of the products are high as compared to those of competitive products because of which the customers easily shift to the competitive products whose prices are relatively low. B. Distribution problem: As there is only one distributor in the whole Jamshedpur city, the dealers are facing some problems in getting the products and receiving bills and challans and even the service provided by the dealers not up to that mark. C. Outsourcing of manufacturing: The dealers are facing problems in convincing the consumers about the quality of the products when the customers know that the production of Tata Agrico is outsourced. The customers get doubt about the quality of the products as these are not produced by Tata itself.

6.3

Opportunities

A. National Brand: Tata Agrico can be made a national brand as this has been the oldest brand available in the market as well as there is no other competitive national brand available. Creating awareness nationally about the brand can increase the sales. B. Boom in real estate sector: In current business scenario in India, Real Estate sector is booming and thus the demand of the products dealt by Tata Agrico is getting more and more and will continue C. Agricultural Sector: In the current budget 2008, Indian Government has sanctioned a huge amount of rupees which will be provided to the farmers as loan for agriculture and hence the demand of the agricultural tools will be more. 49

6.4

Threats

A. Financially weak consumers: The Indian farmers and labours are not financially strong enough to buy branded and bit costly products. B. Competitors: The number of Tata Agrico is increasing day by day and thus they are providing a real challenge it in the market. According to the dealers, the swing with which Tata Agrico’s competitor SRG group is doing business, it may lead in the market leaving behind Tata Agrico.

50

Recommendations The Tata Agrico product is a brand itself in the market and obviously got a wide edge on the competitors in the market, being a Tata product but now days it has been perceived while visiting in the market that the quality of the agriculture product has been gone down day by day. So the following suggestion is given for the development of the brand equity for the Tata Agrico product. 7.1

Switching intermediaries

Changing the pattern of distribution can further enhance the agriculture product market by bringing the firm closer to its customer. It is seen for Tata Agrico product that only one distributor exist in the entire state for the avaibility of the product and dealers are facing lots of problems for delivering of the product like they have to pay full advance before the delivery of product, instead of full ordered product dealers loose some number of product etc. This can be diminished by adding company-owned or franchised retail outlet in the market and can give customer a better place for purchasing the agriculture product. In this way the firm can switch to direct marketing from indirect marketing. Tata Agrico may use both strategies to penetrate the market. The may use conventional channel of distributor-dealer network along with they may create a chain of exclusive boutiques like company owned or franchised retail outlets across the Jharkhand state.In this way it can motivate the prime customer group like contractors, builders or to some extent the affluent farmers (usually major credit cards holders) to visit them and shop for tan exclusive ranges of agriculture product at a special price. Finding new outlets to distribute the product is the key to deeper penetration. Lots of brand succeeded in this way. In other words following the customer and making the product available at all possible places of customer congregation can ensure Tata Agrico competitive fit with the market. In this way it can also improve the brand equity of the product.

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7.2

Vehicles as a medium for advertising

Transport vehicles also helps reinforce brand image,for example we may see this strategy is being used by many soft drinks company like Pepsi,Coca-Cola,Mineral water producers and other consumer product companies like G.E etc.This strategies could be used by Tata Agrico to communicate its brand image and values ,the name written of Tata Agrico on the vehicles that could be run in the rural area to attract the attention of the farmers and also in urban areas to attract the attention of contractors and builders. In this way the brand of Tata Agrico could be repositioned in the mind of target customers. 7.3

Event management and sponsorship

In an environment of highly fragmented media audience, an effective way of ensuring a captive audience is event management and sponsorship.Tata Agrico can be a sponsor of the Programme like Krishi-Darshan which is telecasted for the benefits of the farmers. In this way the brand could be positioned in the mind of the customers. 7.4

Understanding consumer needs

Tata Agrico being a brand name talks with maximum target customers every year. The company can use variety of approaches; from In-home rural area visits for lower class segment like farmers and its product testing via internet for high segment liken contractors. In this way it would be able to discover new, unmet and often unarticulated consumer needs. 7.5

Others •

Tata Agrico should go for a new restructuring process by which it can keep itself very competitive in the market. The company should arrange its manufacturing units across India to decrease its transport costs so that it can bring down its total manufacturing costs easily and can tap Indian market efficiently.

•

Tata Agrico should initiate its marketing activities across all over India to increase the visibility of Tata Agrico brand.

52

•

While delivering its product to consumer Tata Agrico can give such gift like pen, key rings, diaries, letter- pad etc with the name Tata Agrico engraved on it to promote customer loyalty.

•

To launch lucrative dealer incentives scheme so that dealers should be motivated.

•

To educate the consumers about the genuine Tata Agrico product through product communication campaign.

•

To protect the brand and differentiate it from spurious product.

•

To concentrate on rural marketing through wall painting and effective measures.

•

To create awareness about the brand across the country through regional advertisements in agricultural programmes through Radio, TV, Newspapers.

•

To launch customer incentive programmes to build brand loyalty.

•

To be a strong customer focus the organization needs to promote internal as well as external campaigns so that its make its employee more customer focused as well as the customer more aware about the organization .For this Tata Agrico can go for the campaigns with tag line such as – “we know customer knows us better than us”, Tata Agrico: - The name which must be trusted. These campaigns will surely reinforce the company focus on the customer.

53

CONCLUSION In the conclusion of the project, I would like to state that branding has become the most important element of the marketing function

in

almost

all

industries.

Brand

management

is

the

p r o c e s s , b y w h i c h Ta t a A g r i c o c a n m a k e d i f f e r e n t i a t i o n f r o m other competitors, can create customer loyalty and adds corporate value on brand. In the current competitive markets, brands have become to be identified as an intangible asset that can be revenue generating in the long term. Being the oldest player dealing with agrico products in the market a s w e l l a s b e i n g a b u s i n e s s u n i t o f t h e s u c c e s s f u l l y r u n n i n g Ta t a S t e e l , Ta t a A g r i c o h a s g a i n e d b r a n d i m a g e i n t h e m a r k e t . B u t a s the business scenario is changing with inclusion of more number o f c o m p e t i t o r s , Ta t a a g r i c o h a s t o u p g r a d e t h e b r a n d m a n a g e m e n t c o n t i n u o u s l y. I t h a s m a i n t a i n e d a n a p p r e c i a b l e q u a l i t y o f t h e product, channels,

but

it

has

promotions

to

give

like

more

dealers

attention and

on

customers

distribution incentive,

advertising, rural marketing and especially on pricing. I f Ta t a A g r i c o m a n a g e s i t s b r a n d i m a g e i n t h e m a r k e t a n d represents itself as a national brand by fulfilling all the factors discussed above, it can run its business successfully and thus can be the number one player in the market in comparison to its competitors.

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Appendix 9 A.

Questionnaires for consumer’s perception about agricultural tools

1) Which agricultural tools you are using?  Hoes  Shovels  Pick-axes  Hammers  Sickles  Crowbars  Garden Tools 2). Are you aware of Tata Agrico products?  Yes  No 3) Are you a user of Tata Agrico product?  Yes  No (If no then go to Q.No.11.) 4) In Tata Agrico brand which sub-brand do you use?  Tata Hoes  Tata Shovels  Tata Pick-axes  Tata Hammers  Tata Sickles 55

 Tata Crowbars  Tata Garden Tools 5) What do you think is the toughest competitor to Tata Agrico?  SRG group  Kinger  Hurkut  Any other Please specify why? ......................................... 6) Are you satisfied with the Tata agrico products?  Yes  No If No, why? ............................................ 7) What influence your decision while buying Tata Agrico Product?  Brand image  Reliability  Durability  Quality  Appearance  Price  Any other? Please specify…………………………….. 8) Have you seen any promotional campaign of Tata Agrico?  Yes  No If yes which one you have seen mostly?  TV advertisement

56

 Outdoor hoardings  Road show  Media interview  Any other? Please specify…………. 9) Do the various schemes associated with Tata Agrico affect your purchase?  Yes  No 10) Would you suggest any changes for Tata Agrico product in the following field?  Availability  Style of packaging  More schemes to be associated with the brand  Pricing  Quality  Any other? Please specify ……………………. 11) Why not Tata Agrico?  Price  Quality  Packaging  Fewer schemes as compared to other brand  Any other, please specify? ................................... 12) Which Brand do you prefer to buy?  SRG Group  Kinger Group  Hurkut Group  Any Other? Please Specify? .................................

57

13) What influence you to buy your preferred brand?  Your colleague  Advertisement  Price  Quality  Self-experience  Any Other? Please Specify…………………… 14) If your preferred Brand is not available then you go for….. First choice …………………………… Second choice ………………………... 15)

How frequently are you purchasing these tools?

 Monthly  Quarterly  Half-yearly  Yearly. 16) . What is the quantity of purchasing at a single time?  (1-5)  (6-10)  (11-15)  More than 15. 17) Most preferred brand among people you know?  SRG group  Hurkut Group

58

 Kinger Group  Tata Agrico  Any Other? Please Specify…………………. 18) Do you agree with the punch line of Tata Agrico – A Bond of Trust? ………………………………………………………………………..

Something about you. Name: - Mr./Mrs./Ms………………………….. Age Group: - kindly tick whichever is applicable  < 25  25-34  35-44  45 and above Occupation:-

Income Group: < 5,000  5,001-10,000  10,001-15,000  15,001 and above

Thank you for your co-operation and patience.

59

9B

DEALER’S OPINION SURVEY 1. What influence your customer’s decision to purchase a Tata Agriculture Brand like Hoes, Shovels etc? (rank the following in the order of performance) Best, 2- Next best, etc. Brand Reliability Performance Durability 2. Rank the products in order of demand from customers Most demanded, 2- Next most demanded etc. Hoes Sickles Crowbars Shovels Pick Axes Hammers Roll-cut Secateurs Pruning Secateurs Garden Cultivator Garden Trowel

60

3. Rank the customers in order of purchasing demand Highest purchasing demand, 2- Next purchasing demand etc. Farmers Labourors Contactors Industries (e.g. Railways) 4. Among the total sales of agricultural tools, what percentage is carried by TATA AGRICO products? Less than 25% (25-50)% (50-75)% More than 75% 5. Are you aware of any promotional activities/advertisements by Tata Agrico? Yes No 6. How commercials can affect the sales? Increased sales Decreased sales No change in sales 7. If No, which do you think is the most striking media for Tata Agrico to advertise? Newspaper TV Radio Hoarding 61

8. Do you think the quality of Tata Agrico product has been able to attract the customer? Yes No

9. Which do you think is the toughest competitor to Tata Agrico? SRG Group Kinger Hurkut Any others Please specify why? 10. Where do you rank the following Agriculture product company in terms of (Rank the top 3 for each).

Tata Agrico

SRG group

Hurkut

Kinger

Brand Name Ranges of product Performance Dealer Promotional Activities Consumer Promotional Activities

11. Do you think Tata Agrico is a 62

Successful brand Unsuccessful brand

12. Why do you think Tata Agrico has been a successful/unsuccessful brand? Range of products Quality Distribution network Promotional activities 13. Are you satisfied by selling Tata Agrico products? Yes No If No, why? 14. Are you satisfied with the dealer incentive scheme provided to you by Tata Agrico? Yes No 15. Are you satisfied with the service provided by the distributor? Yes No If No, why? A word about yourself Name: 63

Shop Address: How long have you been in this business? Total sales in agricultural tools (in Rs.) : Suggestions to increase the sales of Tata Agrico products.

BIBLIOGRAPHY

All the information’s were collected from internet site, books, journals and data’s provided to me. Internet site www.tatasteel.com www.google.com www.tataagrico.com www.thehindubusinessline.com www.hinduonnet.com www.expressindia.com Books Marketing Research by Rajendra Nargundkar (IInd edition) Marketing Management by Philip Kotler (Eleventh edition) Research Methodology by C R Kothari (Second edition) Global Brands by Senthil Ganesan Business Research methods by Donald R Cooper (Sixth edition) Journals ICFAI case studies in Brand management Financial Express (June edition) Library Shavak Nanavati Technical institute (SNTI) library Tata Management Development Centre (TMDC) library

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