82
index 1. The Indian Automobile Industry Today……………………………….. 2. TATA Motor ltd Overview…………………………………………….. 3. Various Products of TATA Motors…………………………………….. 4. Other TATA Services…………………………………………………… 5. Share Holding Pattern of TATA Motors………………………………... 6. Snapshot Analysis of Company : SWOT……………………………….. 7. Recent Business Decisions……………………………………………… 8. Marketing Strategies…………………………………………………….. 9. Human Resource Strategies……………………………………………... 10. Operation Strategies…………………………………………………….. 11. Indian Automotive Players(Financial strategies) ……………………….. 12. Conclusion……………………………………………………………… 13. Bibliography……………………………………………………………. Executive Summary This Project report tries to take a look on various aspects on Marketing and study of Marketing strategies adopted by Tata Motors Limited. We settled for Tata Motors Limited because it

89237696 Marketing Strategy of Tata Motars

Embed Size (px)

Citation preview

Page 1: 89237696 Marketing Strategy of Tata Motars

index

1. The Indian Automobile Industry Today………………………………..

2. TATA Motor ltd Overview……………………………………………..

3. Various Products of TATA Motors……………………………………..

4. Other TATA Services……………………………………………………

5. Share Holding Pattern of TATA Motors………………………………...

6. Snapshot Analysis of Company : SWOT………………………………..

7. Recent Business Decisions………………………………………………

8. Marketing Strategies……………………………………………………..

9. Human Resource Strategies……………………………………………...

10. Operation Strategies……………………………………………………..

11. Indian Automotive Players(Financial strategies)………………………..

12. Conclusion………………………………………………………………

13. Bibliography…………………………………………………………….

Executive Summary

This Project report tries to take a look on various aspects on Marketing and study of

Marketing strategies adopted by Tata Motors Limited. We settled for Tata Motors Limited

because it Established under the parent company, Tata Group, in 1945, Tata Motors Limited has

become India’s largest automobile company. It was the first Indian automobile company to list

on the New York Stock Exchange.

Tata Motors began manufacturing commercial vehicles in 1954 and entered the passenger

vehicles market segment in 1991.

Page 2: 89237696 Marketing Strategy of Tata Motars

In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and

coach manufacturer. In May 2009, Tata Motors introduced ushered in a new era in the Indian

automobile industry, in keeping with its pioneering tradition, by unveiling its new range of world

standard trucks. In their power, speed, carrying capacity, operating economy and trims, they will

introduce new benchmarks in India and match the best in the world in performance at a lower

life-cycle cost. Tata Motors now ranks second in India’s passenger vehicle market. Hence a

detailed study at the marketing strategies adopted by Tata Motors gives us an excellent learning

opportunity.

Objectives

Some of the Objectives which focused upon in this report are:

To study the Marketing Strategies of Tata Motors.

To Focus on Marketing Mix Of Tata Motors.

Milestones achieved by Tata Motors.

Page 3: 89237696 Marketing Strategy of Tata Motars

COMPANY OVERVIEW

Founder: J. R. D. Tata

Chairman: Ratan Tata

The Tata Motors group is a passenger and commercial vehicle manufacturer based in

India. The motor group was established in 1945 as part of the larger Tata Group. They have

long been known for their commercial vehicles and in the past ten years entered into the

passenger car market. Currently, Tata Motors has a line of five passenger vehicles and a large

line of commercial vehicles producing pickups, trucks, tractor trailers, tippers, and buses. Both

product lines of the Tata Motors group have seen success, but much of this has been built upon

the more deeply established commercial vehicle product line.

Tata Motors commercial line has been established for several years in many market

segments such as Europe, Africa, The Middle East, Australia, Southeast Asia, and South Asia.

Tata Motors has expanded their business and market share around the world through a series of

acquisitions. In 2004, they acquired Daewoo commercial vehicle Company in South Korea

which was South Korea’s second largest truck manufacturer. This acquisition gave Tata Motors a

significant presence in the Korean market. They have also entered into joint ventures with

companies such as Thonburi Automotive in 2006, which allowed them to manufacture and

market pickup trucks in Thailand. “We think it makes sense for Tata to expand through

Page 4: 89237696 Marketing Strategy of Tata Motars

acquisition (as it did in tea and steel) than spend a decade to build the business” (Lehman

Brothers). The commercial vehicle area of the business has certainly been how Tata Motors

have built their reputation, with commercial vehicles accounting for 80-85% of company profits.

They are beginning to employ a similar technique as they now expand into the passenger car

business.

Tata Motors have been making global headlines in the auto industry lately; the largest

news being their acquisition of Jaguar and Land Rover from Ford. “Tata paid 2.3 billion dollars

to Ford for the two brands that cost Ford 5.3 billion” (Carty, USA Today). This is a major step

for the company because it catapults them into the luxury car business which they are not known

for at this time. Tata, like many new businesses it acquires, is allowing this new segment of the

business to be run by previous management since they have more experience in the luxury

automotive business. “Tata will give us some space. They want us to run our business, be a

premium British car company” (Mike O’Driscoll, managing director of Jaguar). This is yet

another large acquisition for the Tata Motors group and could create great success for the

company in the near future.

Furthermore, Tata Motors made another large announcement regarding their progress in

the passenger vehicle segment. In January they announced that they, “would release a $2,500 car

that could replace the motor scooters commonly used in developing countries to cart around

whole families” (Carty, USA Today). This is a major breakthrough in the automotive industry

and shows how far reaching, diverse, and competitive the Tata Motors group is becoming. Soon

they will be serving customers in the high-class luxury market while still catering to their older

niches in developing countries.

Page 5: 89237696 Marketing Strategy of Tata Motars

MILESTONES

It has been a long and accelerated journey for Tata Motors, India's leading automobile

manufacturer. Some significant milestones in the company's journey towards excellence and

leadership.

1945- Tata Engineering and Locomotive Co Ltd (TELCO) is set up as a locomotive maker at the

end of World War II

1954- Company shift to making trucks in a joint venture with Germany’s Daimler-Benz

1961- Exports begin with the first truck begins being shipped to Ceylon (present-day Sri Lanka)

1977- First commercial vehicle manufactured in Pune

1983- Manufacture of heavy commercial vehicles commences

1986- Production of first light commercial vehicle

1991- Launch of the first passenger car, the Tata Sierra. One millionth vehicle rolled out.

1994- Enters joint venture to make Mercedes Benz cars in India

1999-Beings production of India’s first fully indigenous passenger car, the Indica

2002-Ends joint venture with Daimler

2002-TELCO is renamed Tata Motors Ltd.

2003-Tata Motors Ltd. Announces plan to build world’s cheapest car for 100,000 rupees (1,250

pounds or 2,500 dollars)

2004- Acquires South Korea’s Daewoo Commercial Vehicle Company and is listed on the New

York Stock Exchange

2005- Buys 21 percent stake in Spanish bus maker Hispano Carrocera SA, launches mini-truck,

the Ace

2006- Signs initial agreement with Fiat

2008- Unveils one-lakh (100,000 rupee) “People’s Car” also know as the Nano. Acquires Jaguar

and Land Rover.

2009- Tata Motors Ltd. launches Nano. Introduction of new world standard truck range.

Page 6: 89237696 Marketing Strategy of Tata Motars

MARKETING MIX

Marketing is the process by which a product or service originates and is then priced, promoted,

and distributed to consumers. The principal marketing functions involve market research and

product development, design, and testing. It is the business activity of presenting products or

services in such a way as to make them desirable.

One has to consider promotion that is balanced with a suitable product available at a reasonable

price, provided at all places to maximize the sale of one’s product.

MARKETING MIX

PRODUCT PRICE PROMOTION PLACE

Brand Pricing Strategy Personal Selling Channels of Distributions

Packaging Pricing & Quality Advertising Physical Distribution

Innovations Price & Alterations Public Relations

Quality Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand : Advertising is often used to make consumers aware of a product’s special low

price or its benefits. But an even more important function of advertising is to create

an image that consumers associate with a product, known as the brand image. The

brand image goes far beyond the functional characteristics of the product. The

products of Tata Motors have many special characteristics to them, but when

consumers think of it, they not only think of its features, but they may also associate it

with quality, performance, and class. All of these meanings have been added to the

product by advertising. Consumers frequently buy the product not only for its

functional characteristics but also because they want to be identified with the image

associated with the brand.

Tata Motors have been successful in creating and maintaining a professional

brand image.

Page 7: 89237696 Marketing Strategy of Tata Motars

b. Packaging : A vehicle cannot have a material packaging. Here, packaging refers to

and effective assembly of features. Tata Motors provide many innovative features to

suit the target customers and the product. E.g. Tata Safari Dicor has ‘Reverse Guide

System’ which includes a weather-proof camera to help the driver while reversing the

vehicle.

c. Innovations : The various motives behind buying an automobile are Need, Prestige,

Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives

to bring new innovations in their product. Tata have an industrial experience of over

100 years and they are well known with the Psychology of Indian customers, who

desire more at less price. This experience has helped them to develop products which

fulfill the expectations of Indian consumers.

d. Quality Control : Tata Motors have their Quality Control standards and the QC Dept.

ensures that the customer does not face any inconveniences of a defective product.

Products of Tata Motors:

1. Passenger cars – Indica, Indigo, Indigo Marina, Nano

2. Utility Vehicles – Safari Dicor, Sumo Grandi, Xenon Xt

3. Trucks – SFC 407, SFC 410, SFC 709, SFC 909, LPT 407,

LPT 709, LPT 809, LPT 909.

4. Buses – SFC 407 Bus, LD 407, LP 407 TT, LP 709, LP 909,

LP 613, LP 713, LPO 918, LPO 1109 TC, LPO 1618

2. PRICE (Pricing Strategy, Alterations, Discounts)

Page 8: 89237696 Marketing Strategy of Tata Motars

a. Pricing Strategy : The prices are fixed keeping in mind a number of factors.

Prices have to be at par with the prices of the competitors. Tata Motors give a

relative price advantage as compares to its competitors. The various determinants

of price are

i. Market Condition

ii. Costs incurred

iii. Profit percentage desired by the Co.

iv. Dealer Profit

b. Alterations : The Company does not allow any alterations to any of the features of

the product. If there is an alteration which affects the performance of the engine,

then the warranty becomes void. However, there may be alterations in the

accessories, if desired by the customer.

c. Discounts : Discounts are decided by the Co. every month. Any further discounts

made from the profits of the dealer. However, the Co. may compensate the dealer

for the discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)

a. Personal Selling : There is minimal personal selling involved. The Sales Officers

at the dealerships collect prospective customer databases and perform cold calling

to attract customers.

b. Advertising : Advertising is a form of commercial mass communication designed

to promote the sale of a product or service. Tata Motors is responsible for the

advertising of its products. The dealer does play any role in the advertising. The

various media used for advertising are T.V., Newspapers, Magazines, Hoardings,

Internet etc. The dealer conducts point-of-purchase displays to advertise the

products. The advertisements done by the Co. help the dealer to capitalize on the

market.

c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate

advertising and personal selling; Sales promotions are designed to persuade

consumers to purchase immediately by providing special incentives such as cash

Page 9: 89237696 Marketing Strategy of Tata Motars

rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion

during festivals such as festive discounts during Diwali.

d. Public Relations : Public Relations is a management function that creates,

develops, and carries out policies and programs to influence public opinion or

public reaction about an idea, a product, or an organization. The Co. takes serious

measures to maintain good public relations. The Co. follows business ethics to

ensure that the customer is satisfied and receives good service whenever and

wherever he desires.

Advertisement given by Tata Motors:

Page 10: 89237696 Marketing Strategy of Tata Motars
Page 11: 89237696 Marketing Strategy of Tata Motars

4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution : In case of vehicles, dealership method of distribution

and sales is generally adopted. Tata Motors have also adopted dealership method

of distribution of its products. The dealers purchase products from the Co. at a

negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within

these prices. As the Co. deals in commercial and passenger vehicles, there may be

a single or distinct dealerships to market its commercial and passenger vehicles in

a town. However, if there is a single dealership appointed, then the commercial

and passenger vehicles are managed under Commercial Vehicles Dept. and

Passenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies

buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk

quantities of vehicles are ordered by a Govt. Dept. or a private company. The

sales, distribution and billing of these are looked after by the Co. itself.

b. Physical   Distribution : The commercial vehicles are manufactured at Jamshedpur,

Lucknow and pantagar whereas the passenger vehicles are manufactured at Pune

plant. From the plant, the finished product is transported to the dealerships. The

nation-wide dealership, sales, services and spare parts network comprises over

2,000 touch points. The dealerships are strategically located in the target and

potential markets to ensure efficient and timely availability of its products in the

market.

ANALYSIS OF THE MARKETING STRETEGIES

PEST ANALYSIS

POLITICAL:

Page 12: 89237696 Marketing Strategy of Tata Motars

Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle

East, and Australia, it needs to pay close attention to the political climate but also laws and

regulations in all the countries it operates in while also paying attention to regional governing

bodies. Laws governing commerce, trade, growth, and investment are dependent on the local

government as well as how successful local markets and economies will be due to regional,

national and local influence.

On March 26, 2008, Tata Motors reached an agreement with Ford to purchase Jaguar and

Land Rover. In order to be capable of this acquisition, Tata Motors must have a full

comprehension of the governing bodies and laws regulating commerce in the home country, the

United Kingdom, but also in countries Jaguar and Land Rover operate in.

In accordance, Tata’s headquarters in Mumbai, India, strictly controls and regulates

operations in all dealerships and subsidiaries, in addition to knowing and abiding by all labor

laws in the multiple countries where they have manufacturing plants it has to watch political

change. This will be especially vital in the future as Tata Motors continues to expand and grow

into new markets. “While currently about 18% of its revenues are from international business,

the company's objective is to expand its international business, both through organic and

inorganic growth routes”. The foundation of the company’s growth internationally is a deep

understand of economic stimulation, customer needs, and individual government regulations and

laws. Although it is the headquarters ultimate responsibility to make sure each individual office

and branch is operating and abiding by the local laws, it will become increasingly more

important for that duty to be taken care of at the regional or even local level.

ECONOMIC:

Operating in numerous countries across the world, Tata Motors functions with a global

economic perspective while focusing on each individual market. Because Tata is in a rapid

growth period, expanding or forming a joint venture in over five countries world-wide since

2004, a global approach enables Tata Motors to adapt and learn from the many different regions

within the whole automotive industry. They have experience and resources from five continents

across the globe, thus when any variable changes in the market they can gather information and

resources from all over the world to address any issues. For instance, if the price of the

aluminum required to make engine blocks goes up in Kenya, Tata has the option to get the

Page 13: 89237696 Marketing Strategy of Tata Motars

aluminum from other suppliers in Europe or Asia who they would normally get from for

production in Ukraine or Russia.

Tata Motors also has to pay close attention to shifts in currency rates throughout the

world. Currency fluctuations can equate to higher or lower demands for Tata vehicles which in

turn affect profitability. It can also mean a rise in costs or a drop in returns. But they also have to

pay attention to not just the domestic currency, the rupee, but also to the dollar, euro, bhat, won,

and pound, to just name a few. Just because the rupee is strong against the dollar does not mean

it is strong against all the other currencies. Attention to currency is important because it

influences where capital investment will develop and prosper.

SOCIAL:

Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders in a

company will affect how well a company performs. This includes every stakeholder from the

CEO and President, down to the line workers who screw the door panel into place, from the

investor to the customer, the culture and attitude of all these people will ultimately determine the

future of a company and whether they will be profitable or not. For this reason, Tata Motors

tends to use an integration and rarely separation technique with foreign companies they acquire.

On the other hand, some economic issues that Tata Motors face must also be looked at

from a more localized perspective. For instance, the market in India for cars is much different

than the market for cars in Italy. For one, India has over one billion more people than Italy does,

thus the market is much larger or not as limited. Second, you must also take into affect the

demographics and the average income of each market. Italians have a higher average income per

capita than Indians and Italian citizens tend to drive larger and fancier cars. For this reason, the

Tata Nano might not do so well in the Italian market. In summation, Tata Motors views the

economy from a global perspective with operations across the entire globe; however, they must

also maintain a local market understanding and knowledge when it comes to product positioning

and placement throughout the different markets Tata conducts business in.

In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company, which was at

the time Korea’s second largest truck maker. Rather than using de-culturation or assimilating

Daewoo, Tata took an integrated approach, and continued building and marketing Daewoo’s

Page 14: 89237696 Marketing Strategy of Tata Motars

current models as well as introducing a few new models globally just as it had been done under

Korean management.

With the new acquisition of Jaguar and Land Rover, Tata will have to be careful with

how they handle the acquisition. While Land Rover is thriving while under the helm of Ford,

Jaguar was more of the trouble child. “Jaguar cost Ford some $10 billion during its 18-year

stewardship and its sales were in headlong decline, especially in America, its most important

market. Industry analysts also struggled to see what value Tata could add that had eluded Ford,

and what synergies there could be between a maker of trucks and basic cars… and two luxury

marquees”. Separation could be a good approach for the immediate future to keep the name of

Jaguar and Land Rover distinguishable and associated with the luxury automobile market.

Overall, Tata does a good job of integrating some aspects of their large multi-national

conglomerate into new acquisitions; however, the company must also understand that separation

from the name Tata can be valuable in some social areas.

TECHNOLOGY:

Tata Motors and its parent company, the Tata Group, are ahead of the game in the

technology field. The Tata Group as a whole has over 20 publicly listed enterprises and operates

in more than 80 countries world-wide. This equates to Tata Motors having lots of experience and

Page 15: 89237696 Marketing Strategy of Tata Motars

resources to draw from for research and development purposes. “The foundation of the

company’s growth is a deep understanding of economic stimuli and customer needs, and the

ability to translate them into customer-desired offerings through leading edge R&D”. Employing

1,400 scientists and engineers, Tata Motors’ Research and Development team is ahead of the

pack in India’s market and right with the rest of the field internationally. Among Tata’s firsts are

“the first indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle

and, in 1998, the Tata Indica, India's first fully indigenous passenger car,” as well as the

increasingly famous Tata Nano, which is projected to be the world’s cheapest production car. In

the automotive industry, it is becoming increasingly crucial for manufacturers to stay on top of

the technology curve with new problems always rising such as escalating gas prices and

pollution problems. Tata recognizes this and dedicates lots of resources and time into research

and development to be even with or preferably ahead of other competitors, global trends, and

changing economies. In all, an automobile manufacturer must change, adapt, and evolve to stay

competitive in the automotive game, and this is exactly what Tata is doing with their rapid

growth, and extensive research and development.

STP ANALYSIS

Segmentation:

Segmentation is based upon considerable evidence that a single marketing approach or

formula will not work for all members of the community to be served.

Geographic:

The region of Tata motors is whole India with special focus on Type A and fast growing

Type B cities across India.

Demographic:

Age → anybody of age between 18 to 50 years.

Income → anybody with an income of over 4 lakh p.a.

Page 16: 89237696 Marketing Strategy of Tata Motars

Occupation → millennial employed as professional, managers and those who want to buy

their first car.

Social Class → Middle Class, Upper Middle, Lower Upper and Upper Upper.

Psychographic:

Personality → Dreamers, those who want to achieve big, ambitious, price conscious,

took their first step towards success and value driven.

Behavioral:

Benefits → Quality, Style.

User Status → Potential users and first time users.

Readiness Stage → those who are aware, informed, interested and intend to bye.

Targeting:

Tata Motors has full market coverage in vehicle market as they covers market through

Differentiated Marketing. So Tata Motors typically creates more total sales. However it also

increases the cost of doing business. That’s why they lead to both higher sales and higher costs.

Full Market Coverage

After introducing Tata Nano and acquiring

Jaguar & Land Rover they have full market coverage from Common men to Luxuries loving

people.

So, Tata Motors attempt to serve all customer groups with all the products.

M1 M2 M3

P1      

P2      

P3      

Page 17: 89237696 Marketing Strategy of Tata Motars

Positioning:

Tata Motors has many products for various sectors. Company has a product like Tata ACE

which is used as mini-truck. This product is mostly used at agriculture level. This product can

carry below 1 tone. So, in agriculture sector this mini-truck makes good image. Like that Tata

Motors introduced Tata Nano car for lower level people who cannot afford car but now they can

buy a car in Rs.1 lakh. It also makes a brand image on customer’s mind that Tata Motors is

companies where Customer gets that product what he want. After acquiring Jaguar & Land they

got drastic change in people’s mind. Now customer has more chooses then before.

When people think to purchase a car then they always think about different companies like

Tata Motors, Mahindra and Mahindra, Hyundai, Maruti etc. In this situation customer always

think about his likings, styles and Tata Motors can provide this as good as possible. Everybody

knows that Tata motors can give them good product by technical.

So, Tata Motors’s brand image instead of the people is trustworthy and reliable car

company.

The Indian Auto Industry Today

Page 18: 89237696 Marketing Strategy of Tata Motars

In 2009 estimated rate of growth of India auto industry is going to be 9 percent. Auto industry in

India has been hit hard by ongoing global financial recession. Sales figures of India automobile

industry for December 2008 have shown devastating after effects of global financial slowdown.

However, there is still hope for automobile industry of India in 2009 as there are certain factors

working in its favor. India is blessed with a middle class, which is getting economically stronger

with every passing day. This class is being touted as potential consumers for India auto industry

in years to come.

Indian economy has been, more or less, able to withstand tremors of global financial meltdown.

Even though its rate of growth has slowed down considerably, there are hopes of an economic

revival. Work force of auto industry of India is relatively well trained.

All these factors indicate that there could be a decent future for India auto industry in days

Hyundai, a major automobile establishment of South Korea, has put in large sums of money in

India automobile market. As per its estimates, India auto industry could become a major center

for small car manufacturing organizations in future.

There are some other automobile companies of world who have shown interest in India auto

market. Major names among these are General Motors, Skoda Auto and Mercedes-Benz. These

companies have major plans lined up for India auto industry and are likely to invest a huge

amount of money in India automobile market

India domestic auto industry has been passing through a tough phase in 2008 and such a trend is

supposed to continue in 2009 as well. Leading members of India auto industry have forecast a

difficult path in 2009. Shinzo Nakanishi, managing director of Maruti Suzuki, has said that 2009

would present them with a number of challenges.

Page 19: 89237696 Marketing Strategy of Tata Motars

Tata Motors Limited

Overview

Tata Motors Limited, formerly known as TELCO (TATA Engineering and Locomotive

Company), is a multinational corporation headquartered in Mumbai, India. It is India's largest

passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group,

and one of the world's largest manufacturers of commercial vehicles. The OICA ranked it as the

world's 20th largest automaker, based on figures for 2006.

Tata Motors was established in 1945, when the company began manufacturing locomotives. The

company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-

Benz AG, which ended in 1969 Tata Motors was listed on the NYSE in 2004, and in 2005 it was

ranked among the top 10 corporations in India with an annual revenue exceeding INR 320

billion. In 2004, it bought Daewoo's truck manufacturing unit, now known as Tata Daewoo

Commercial Vehicle, in South Korea. It also, acquired a 21% stake in Hispano Carrocera SA,

giving it controlling rights in the company. Tata Motors launched the Tata Nano, noted for its Rs

100,000 price-tag, in January 2008.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land

Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The

purchase was completed on 2 June 2008

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Ahmedabad and

Pune.

Page 20: 89237696 Marketing Strategy of Tata Motars

1. History

Tata Motors launches its first truck in collaboration with Mercedes-Benz

Tata Motors is a part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J.

Baker. The company was established in 1945 as a locomotive manufacturing unit and later

expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with

Daimler-Benz AG of Germany.

2.Cars

Tata Indica

After years of dominating the commercial vehicle market in India, Tata Motors entered the

passenger vehicle market in 1992 by launching the Tata Sierra, a multi utility vehicle. After the

launch of three more vehicles, namely, Tata Estate (1992, a stationwagon design based on the

earlier 'TataMobile' [1989] a light commercial vehicle which some people may still think of as

Tata's first passenger car), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports

utility vehicle); In 1998 Tata launched the Indica, the first fully indigenous passenger car of

India. Though the car was initially panned by auto-analysts, the car's excellent fuel economy,

powerful engine and aggressive marketing strategy made it one of the best selling cars in the

history of the Indian automobile industry. A newer version of the car, named Indica V2, was a

Page 21: 89237696 Marketing Strategy of Tata Motars

major improvement over the previous version and quickly became a mass-favorite. A badge

engineered version of the car was sold in the United Kingdom as the Rover CityRover. Tata

Motors also successfully exported large quantities of the car to South Africa. The success of

Indica in many ways marked the rise of Tata Motors. Note: In 1996-97 Tata launched the Tata

Sumo Deluxe and the Tata Sierra Turbo variants respectively.

3.Daewoo acquisition

Main article: Tata Daewoo Commercial Vehicle

Tata Novus is one of the best selling commercial trucks in South Korea.

With the success of Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004,

it acquired the Daewoo Commercial Vehicle Company of South Korea. The reasons behind the

acquisition were:

Company’s global plans to reduce domestic exposure. The domestic commercial vehicle

market is highly cyclical in nature and prone to fluctuations in the domestic economy.

Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in

the light commercial vehicle (LCV) segment. Since the domestic commercial vehicle

sales of the company are at the mercy of the structural economic factors, it is increasingly

looking at the international markets. The company plans to diversify into various markets

across the world in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata

Novus from Daewoo’s (South Korea) (TDCV) platform. Tata plans to leverage on the

strong presence of TDCV in the heavy-tonnage range and introduce products in India at

an appropriate time. This was mainly to cater to the international market and also to cater

Page 22: 89237696 Marketing Strategy of Tata Motars

to the domestic market where a major improvement in the Road infrastructure was done

through the National Highway Development Project

On its 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).

4. Joint ventures

Tata MarcoPolo NON-AC City Bus in Delhi.The NON-AC version is only used in Delhi while

AC versions are used in Bangalore, Mumbai and Delhi alike

In 2005, sensing the huge opportunity in the fully built bus segment, Tata Motors acquired 21%

stake in Hispano Carrocera SA , Aragonese bus manufacturing company and introduced its high-

end inter-city buses in the country.

Tata Motors has also formed a 51:49 joint venture with Marcopolo S.A., a Brazil-based global

leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and

assemble fully-built buses and coaches targeted at developing mass rapid transportation systems.

The joint venture will absorb technology and expertise in chassis and aggregates from Tata

Motors, and Marcopolo will provide know-how in processes and systems for bodybuilding and

bus body design.

Page 23: 89237696 Marketing Strategy of Tata Motars

5. Tata Ace

Tata Ace was India's first mini truck

Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched in May

2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had

changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a

new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged

as the first choice for transporters and single truck owners for city and rural transport. By

October 2005, LCV sales of Tata Motors had grown by 36.6 percent to 28,537 units due to the

rising demand for Ace. The Ace was built with a load body produced by Autoline Industries.By

2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the

number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its

introduction.

Tata Ace has also been exported to several European, South American and African countries.

Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division.

Page 24: 89237696 Marketing Strategy of Tata Motars

6. 2007

Tata Pick Up, unveiled in 2007, is expected to enter European and American market by 2009.

In 2007, Tata Motors generated revenues of Rs 31,884.69 crore.

In 2007, Tata Motors launched several concept models and future designs of existing models. It

also formed joint ventures with various local companies in several countries to assemble Tata

cars. Tata Motors launched a re-designed version of Tata Xenon TL during Motor Show Bologna

which would be assembled in Thailand and Argentina. A pick-up variant of Tata Sumo was also

launched under the program 'Global Pick-Up'. The company plans to launch the new pick-up

model in India, Southeast Asia, Europe, South Africa, Turkey and Saudi Arabia. Tata Motors

also unveiled newer model of Tata Indigo and Tata Elegante concept-car during the Geneva Auto

Show.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine

technology.Tata Motors is looking to extend its relationship with Fiat and Iveco to other

segments like the 'Global Pick-Up' program. The launch of the 'Global Pick-Up' will mark the

entry of the company into developed markets like Europe and the United States. The project was

initially a collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial

Vehicles, but later Tata Motors decided to work with Iveco as Daewoo’s design was not in sync

Page 25: 89237696 Marketing Strategy of Tata Motars

with the needs of sophisticated European customers. The company has formed a joint venture

with Thailand’s Thonburi Company, an independent auto assembler, in which Tata Motors will

hold a 70% stake.

7.2008 onwards

8. Compressed air car

Motor Development International of Luxembourg has developed the world's first prototype of a

compressed air car, named OneCAT.In 2007, MDI owner Guy Negre was reported to have "the

backing of Tata"

It has airtanks that can be filled in 4 hours by plugging the car into a standard electrical plug. In

2008 MDI planned to also design a gas station compressor, which would fill the tanks in 3

minutes.There are no gasoline costs and no fossil fuel emissions from the vehicle when run in

town, but "the compressed air driving the pistons can be boosted by a fuel burner".

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it will run at

100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle. It is actually a dual fuel car

but it is more efficient than any present Hybrid cars.

9. Tata Nano

Tata Nano

Tata has developed a car, named Tata Nano, that aims to sell in 2008. It is the least expensive

production car in the world: the price is about Rs. 1,00,000 (USD $2,000)The company unveiled

Page 26: 89237696 Marketing Strategy of Tata Motars

the supermini car during the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi. Bajaj

Auto and Mahindra-Renault have[when?] plans to launch cars in this price range.

Tata has faced controversy over developing the Nano. Some environmentalists are concerned

that the launch of such a low-price car could lead to mass motorization in India with adverse

effects on pollution and global warming. There was also strong opposition to the compulsory

acquisition of land for the proposed car factory in Singur West Bengal. NowTata Motors Limited

plan to set up the Nano factory in Sanand, Gujarat, because of the problems faced in West

Bengal.

To solve this, Tata is goingto produce the E-Nano, an electric version, in partnership with

Miljøbil Grenland AS

10. Jaguar Cars and Land Rover

Main articles: Jaguar Cars and Land Rover

As of 27 March 2008, Tata Motors reached agreement with Ford to purchase their Jaguar and

Land Rover operations for US$2 billion. The sale is expected to be completed by the end of the

second quarter of 2008Tata will also gain the rights to the Daimler, Lanchester, and Rover brand

names.

In addition to the brands, Tata Motors has also gained access to 2 design centers and 3 plants in

UK. The key acquisition would be of the intellectual property rights related to the technologies.

11.Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle

Tata Ace. Both run on lithium batteries . The company has indicated that the electric Indica

would be launched locally in India in about 2010, without disclosing the price. The vehicle

would be launched in Norway in 2009.

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%

holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for

Page 27: 89237696 Marketing Strategy of Tata Motars

US$1.93 M, which specialises in the development of innovative solutions for electric vehicles,

and plans to launch the electric Indica hatchback in Europe next year.

12. Global operations

The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and

American markets.

With the unveiling of Tata Elegante during Geneva Motor Show, Tata Motors revealed its

intention to enter the sedan and sports car markets.

Tata Indica during an auto exhibition in Bangkok, Thailand. Indica and Xenon TL will be

assembled in Thailand and Argentina.

Page 28: 89237696 Marketing Strategy of Tata Motars

Tata Prima was unveiled during the Geneva Motor Show in 2009. The Luxury Sedan was

designed by Pininfrina and has marked the entry of Tata into the international sedan market. The

car is to be sold in India by 2013 and around the world by 2015

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.

13.Global brands

Tata Motors has been aggressively acquiring foreign brands to increase its global presence. In

2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo

Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano

Carrocera SA, giving it controlling rights in the company.

On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford

Motor in a deal worth $2.3bn (£1.15bn)Tata Motors has also acquired from Ford the rights to

three other brand names: Daimler, Lanchester and Rover. it was rumoured in 2008 that Tata was

in negotiations along with Fiat, General Motors and Renault-Nissan as a possible suitor for the

rapidly declining Chrysler, which is currently owned by Cerberus Capital Management 14.

Present global challenge

Tata Motors have some distinct advantages in comparison to other multi-national competitors.

There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of

sales in developed economies. Tata motors have extensive backward and forward linkages and it

Page 29: 89237696 Marketing Strategy of Tata Motars

is strongly interwoven with machine tools and metals sectors. Tata Group's strong expertise in

the IT based engineering solution for products and process integration has helped Tata Motors.

India has a large auto component industry noted for its world class capabilities. There is huge

demand in domestic markets due to infrastructure developments and Tata Motors is able to

leverage its knowledge of Indian market. There are favorable Government polices and

regulations to boost the auto industry.

However, some major automakers have moved their operations to India to cut costs. Volvo

entered India in 1998 to focus on production of its fully built buses. In India, it has focused on

providing economical transport solutions in consonance with its values of safety, quality, and

environmental care. Its competitive advantage is its high technology which makes the vehicle a

very comfortable option to travel through. Tata's trucks have long been reputed for their

unmatched performance, build, and technological advancements that are the flag bearers in their

production activities in India. It is still operating in the niche market of high end buses where the

Tata compete through its Hispano Carrocera and Marcopolo S.A. JV buses.

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

Page 30: 89237696 Marketing Strategy of Tata Motars

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.

15.Future challenges

Tata Xover

Plastic Car Production- Tata plans on producing a car that is made of nearly 100% plastic.

Mahindra and Mahindra: JV with ITEC, North American leader in heavy trucks. M&M

has formed a 51:49 JV called Mahindra International with ITEC, USA (parent Navistar

International), to manufacture commercial vehicles and to bolster its position in the CV

business. ITEC is the leader in medium and heavy trucks and buses in North America,

and is the world's largest manufacturer of medium-duty diesel engines. Mahindra

International aims to have a presence across the CV market (6-35 tonnes GVW) with

variants of passenger transport, cargo and specialised load applications and is likely to

start producing medium/heavy commercial vehicles from FY09.

Force Motors Ltd: JV with MAN for manufacturing high-tonnage vehicles Force Motors

has paired up with MAN in a 70:30 JV to manufacture high-tonnage and specialty

vehicles, such as long-haul trucks, tippers, tractor trailers and multi-axle vehicles in the

16-32 tonne range at its Pithampur plant, with an initial capacity of 24,000 units per

annum and at an investment of Rs7bn. The JV plans to sell nearly half of its production in

the domestic market, while the rest is to be exported to the Middle East, Turkey, Russia,

Page 31: 89237696 Marketing Strategy of Tata Motars

Asia and Africa. Further, the two companies have formed another JV to manufacture

buses in India from end-2007.

Ashok Leyland : Acquisition of Czech Republic-based Avia. Ashok Leyland (ALL)

recently acquired the truck unit of Czech Republic-based Avia for US$35m. Avia

manufactures 6-9 tonne LCVs and has a capacity of 20,000 units per annum. The

acquisition has given ALL direct access to an entire range of Avia trucks, Avia’s press

shop with dies and tools, welding lines, state-of-the-art paint shop and R&D facilities.

ALL has also entered into technology agreements with Hino Motors of Japan and ZF of

Germany to complement its in-house R&D efforts and developing complementary

components and aggregates.

Various Products of TATA Motors

[1] Passenger cars and utility vehicles

Tata Indigo SW

Tata Sierra

Tata Estate

Tata Sumo/Spacio

Tata Safari

Tata Indica

Tata Indigo

Tata Indigo Marina

Tata Winger

Page 32: 89237696 Marketing Strategy of Tata Motars

Tata Nano (3RD March 2009)

Tata Xenon XT

Tata Xover (2009)

[2] Concept vehicles

Tata Cliffrider

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indica

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Prima

Page 33: 89237696 Marketing Strategy of Tata Motars

[3] Commercial vehicles

Tata 1616 Starbus

Tata Marcopolo Buses in the Delhi BRT.

Page 34: 89237696 Marketing Strategy of Tata Motars

Tata StarBus in Nagpur, Maharashtra. Tata Low Floor Buses are also used by administrations in

Delhi, Mumbai, Pune, Udaipur and Indore

Tata Ace

Tata TL/Telcoline/207 DI Pickup Truck

Tata 407 Ex and Ex2

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus)

Tata 1610/1616 (Heavy bus)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Medium Bus)

Tata Globus (Low Floor Bus)

Tata Marcopolo Bus (Low Floor Bus)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

[4] Military vehicles

Tata LSV (Light Specialist Vehicle)

Page 35: 89237696 Marketing Strategy of Tata Motars

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 T

Other Tata services:

1) Tata Insurance:

Tata AIG Life Insurance Company Limited and Tata AIG General Insurance Company Limited

(collectively 'Tata AIG') are joint ventures of the Tata Group and American International Group,

Inc. (AIG). Tata AIG combines the strength and integrity of the Tata Group with AIG's

international expertise and financial strength,

2) Tata motor finance:

Tata Motors is the largest automobile company in this part of Asia. The company has grown in a

big way in recent years and has embarked on expansion and acquisition programs. As part of it,

Tata Motors has also strengthened and expanded on its finance wing Tata Motor Finance that

provides for loan and financing options to the customers buying Tata Motors automobiles.Tata

Motorfinance (TMF) is the automobile financing wing of Tata Motors. It was launched in June

2003 and provides for loans on various segments of company automobiles like passenger cars,

utility and commercial vehicles along with construction equipments. The company that has

grown into most of the Indian cities along with a significant presence in some of the foreign

markets too, today boasts of 109 branches in 22 Indian states.

Some of the terms associated with the Tata Motor finance are as follows:

Car financing/loan options available for customers belonging to different categories

Page 36: 89237696 Marketing Strategy of Tata Motars

The repayment period varies to the tune of 36 months-84 months

The interest paid on the loans are on the lower end

Finance on passenger and commercial vehicles on all Tata vehicles and Fiat models

Palio and Adventure include top up loans, used vehicle finance, loan takeover and

refinancing

The paperwork is limited and the financing company's representative can be called even

at home to complete the formalities, including calculating the likely Equated Monthly

Installment (EMI) that the customer might have to pay.

Page 37: 89237696 Marketing Strategy of Tata Motars
Page 38: 89237696 Marketing Strategy of Tata Motars
Page 39: 89237696 Marketing Strategy of Tata Motars
Page 40: 89237696 Marketing Strategy of Tata Motars

Marketing Strategies

a) Introduction of the new Tata nano

The introduction of the Nano received media attention due to its targeted low price. The

Financial Times reported[: "If ever there were a symbol of India’s ambitions to become a modern

nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of

homegrown engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the dream of millions

of Indians groping for a shot at urban prosperity." The car is expected to boost the Indian

economy, create entrepreneurial-opportunities across India as well as expand the Indian car

Page 41: 89237696 Marketing Strategy of Tata Motars

market by 65% The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata

Motors, who has described it as an eco-friendly "people's car". Nano has been greatly

appreciated by many sources and the media for its low-cos t and eco-friendly initiatives which

include using compressed-air as fuel and an electric-version (E-Nano Tata Group is expected to

mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India,

to also export them worldwide[25][26]

Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in

road-accidents every year), and have also criticised the pollution that it would cause (including

criticism by Nobel Peace Prize winner Rajendra Pachauri). However, Tata Motors has promised

that it would definitely release Nano's eco-friendly models alongside the gasoline-model

The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but

increasingly violent protests forced Tata to pull out October 2008. (See Singur factory pullout

below.) Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar

(Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat.]The company will

bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of

500,000 units, compared to 300,000 for Singur. Gujarat has also agreed to match all the

incentives offered by West Bengal government.

Cost Cutting features

The Nano's boot does not open, instead the rear seats can be folded down to access the

boot space

It has a single windscreen wiper instead of the usual Some exterior parts of it are glued

together, rather than welded.

It has no power steering.

Its door opening lever was simplified.

It has 3 nuts on the wheels instead of the statutory 4 nuts.

It only has 1 side view mirror

Page 42: 89237696 Marketing Strategy of Tata Motars

Price

Tata initially targeted the vehicle as "the least expensive production car in the world"aiming for a

starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of March 22,

2009)6 years ago, despite rapidly rising material prices at the time

As of August 2008, material costs had risen from 13% to 23% over the car’s development, and

Tata faced the choice of:

introducing the car with an artificially low price through government subsidies and tax-

breaks

forgoing profit on the car

using vertical-integration to artificially boost profits on cars at the expense of their

materials industries

partially using inexpensive polymers or biodegradable plastics instead of a full metal-

body raising the price of the car option.

Model versions

At its launch the Nano was available in three trim levels:

the basic Tata Nano Std priced at 123,000 Rupees has no extras;

the deluxe Tata Nano CX at 151,000 Rupees has air conditioning;

the deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow Colour Taxi

Version;

the luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and

central locking

the Nano Europa, European version of the Tata Nano has all of the above plus a larger body,

bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards

and emission. The base model will have fixed seats, except for the driver's, which will be

adjustable, while the deluxe and luxury models will get air conditioning and body coloured

bumpers.

Page 43: 89237696 Marketing Strategy of Tata Motars

b)Modification in tata sumo

New Tata Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to

launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of

changes in terms of refinement in this decade. It has been the favourite choice for cab owners, as

it is rugged and affordable.

The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff

competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a

carry over of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa

variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX

10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are

powered by a 2-litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre

turbocharged diesel engine that generates 89 bhp. The Victa DI variants get a 3-litre

turbocharged diesel engine. Refinement, both internal and external, is evident across the variants.

Tata's latest three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-

seater, 7-seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L direct

injection common rail (DICOR)

Page 44: 89237696 Marketing Strategy of Tata Motars

engine.

c) New version of indigo,indigo Dicor

Dicor Variants

The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has

already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver

maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been

made apt for Indian roads especially with its driver & co passengers oriented positive attributes

such as :

Anti-submarine front seats

Quick Take

* Fuel Economy 9/14 kmpl (city/highway)

Available Engines 2.0L Inline-4, 67 bhp diesel

2.0L Inline-4, 89 bhp turbo

diesel

3.0L Inline-4, 69 bhp diesel

2.2L DiCOR In-line 4, 118

bhp diesel

Available Transmissions 5-speed Manual Transmission

(MT)

Page 45: 89237696 Marketing Strategy of Tata Motars

New electronic instrument cluster with engine RPM meter

Rear Seat with double folding backrest

Video player with MP3: with headrest mounted LCD screens

1.4-litre as rail diesel engine

Indigo LX Dicor

Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear

view window, black dials with chrome rings & star check as the new pattern for its

console&ACfascia.

Indigo LS Dicor

Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz

silver as the new pattern for console & AC fascia. It has no mounted LCD screens.

ENGINES

Petrol 1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. power - 85 PS @

5500 rpm Max. torque - 12 Kgm @ 3500 rpm

Diesel Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power -

70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm

Dicor 32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail)

16-valve engine with Dual Over Head Camshafts and a Variable Geometry

Turbocharger(VGT) Max.power-70 PS@4000 rpm Max.torque -

140Nm@1800-3000 rpm

Page 46: 89237696 Marketing Strategy of Tata Motars

e) Tapping of Rural Markets

According to the National Council for Applied Economic Research, or NCAER, rural India

accounts for 70% of India’s population, 56% of the national income, 64% of the total

expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets

pale before the huge potential they offer a company. Of the total sales (of consumer goods),

around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER

data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16

trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will

be about two-thirds of the rural economy by 2012-13.

Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of

which runs on cash. Tata motors ltd. are working on strategies to make inroads into these

markets.

Page 47: 89237696 Marketing Strategy of Tata Motars

Human Resource Strategies

a) Hiring Practices

Hiring the right talent is the greatest challenge in business environment and new and

innovative hiring strategies are the need of the hour if Indian companies have to succeed in

the changing global scenario. With Indian companies entering the phase of global mergers

and acquisitions, already there is a shift in standard hiring practices, the compensation

being offered, sharing the vision of the company and transmitting a sense of passion in the

company to the prospective employee will go a long way in attracting the right talent.

Some of the innovative hiring strategies could include hiring teams and not just individuals

and offering education and placement packages. Over the past few years HR is witnessing a

dramatic increase in lateral hiring of professionals with some years of experience, hiring

from the public sector as well as experienced people looking for second careers. The

challenge facing many firms is to hire with retention.

A smart and sophisticated workforce will be the most important corporate resource over the

next 20 The demand for this resource is sure to go up; however, the supply is already

dwindling.

2.Re-organizing the organizational structure of co.:

Page 48: 89237696 Marketing Strategy of Tata Motars

At the time of recession its important task of hr personal to reorganize the structure of

the company.so as to avoid extra man force and duplication of work.

3.Reducing in the incentives given to employees.:

Human resourse manger should cut incentives of individuals.for ex-If marketing manager used to

get incentives for hotelling accommodations 2000 per day.it should be cut down to 1200 per

day..as already due to recession he will get equal amount of service by paying the less price.

4.providing various offers to employee so to maintain the moral to work hard.

It is very important from company point of view to survive in recession.so company should

provide different offers and gifts. For achievements of certain targets so as to maintain the moral

of working in the company. Of employees..

5. No salary cuts and increase in Resource and Development

They have not cut salaries of employees. But they have reduced the extra working hours, which

means the work which is to be done in two hours it has to be completed in two hours. They have

reduced delayes in work.

Operations Strategies

Page 49: 89237696 Marketing Strategy of Tata Motars

a) Reducing no. of shifts :

Tata motors has reduced its number of shifts frm 3 to 2 in a day and so as to control reduce

cost of production. And started making production according to the sales required.

b) Quality Management

Quality management is crucial to effective operations management, particularly

continuous improvement. More recent advancements in quality, such as benchmarking and

Total Quality Management, have resulted in advancements to operation s management as well.

c)Inventory Management

Costs can be substantial to store and move inventory. Innovative methods, such as Just-in-Time

inventory control, can save costs and move products and services to customers more quickly.

Page 50: 89237696 Marketing Strategy of Tata Motars
Page 51: 89237696 Marketing Strategy of Tata Motars
Page 52: 89237696 Marketing Strategy of Tata Motars
Page 53: 89237696 Marketing Strategy of Tata Motars
Page 54: 89237696 Marketing Strategy of Tata Motars
Page 55: 89237696 Marketing Strategy of Tata Motars
Page 56: 89237696 Marketing Strategy of Tata Motars
Page 57: 89237696 Marketing Strategy of Tata Motars
Page 58: 89237696 Marketing Strategy of Tata Motars
Page 59: 89237696 Marketing Strategy of Tata Motars
Page 60: 89237696 Marketing Strategy of Tata Motars
Page 61: 89237696 Marketing Strategy of Tata Motars
Page 62: 89237696 Marketing Strategy of Tata Motars

From this project we conclude that the marketing strategies of Tata motors are according to

market. They always look after their consumers and their needs. They make changes in their

product what consumer wants, that’s why most of the consumers, are satisfied from the

company. Company wants that every people can purchase their product so, they have product

from low price to high price with number of different styles and designs without compromising

product quality. Company is also providing good services to their customers. Company has its

own show rooms and service centers in different places so customers can’t face many difficulties

to purchase their products.

“Success will largely be determined to the extent a company can differentiate itself in terms

of intangibles that go with a car.” Success could well hinge on the best of bundle of services that

a carmaker can provide.

Page 63: 89237696 Marketing Strategy of Tata Motars

BIBLIOGRAPHY

[1] Philip Kotler, Kevin Keller,

Marketing Management (Twelth Edition)

[2] Marketing Management, The McGraw.Hill company,

Rajan Saxena (Third Edition)

[3] www.pearsoned.co.in/pkotler

[4] http://www.genmills.com/corporate/company/india.aspx

[5] http://www.utube.com

www.wikipedia.com

Page 64: 89237696 Marketing Strategy of Tata Motars

[6] http://iegd.institut.com

[7] http://www.rotman.utoronto.com