Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
1
MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF UNDER GRADUATE DEGREE
MARKETING STRATEGIES OF
SUBMITTE...
2
CERTIFICATE OF ORIGIN
This is to certify that I, Mr. Anuj Gupta, a student of under graduate degree in BBA
(2014-2017), ...
3
Acknowledgment
I express my sincere gratitude to my faculty guide, Ms. Rajshree Singh, Assistant
Professor, for her able...
4
Research Methodology
1. Research objectives
i. To study the various marketing strategies employed by TATA Motors
ii. To ...
5
TABLE OF CONTENTS
Chapter Number Subject Page Number
1. Research Methodology 4
2. Introduction 6
3. Company History 11
4...
6
Introduction
The Indian auto industry is one of the largest in the world with an annual production
of 23.37 million vehi...
7
Light Commercial Vehicles (LCVs) reduced by 5.24 per cent during April-October
2015 year-on-year.
In April-October 2015,...
8
● Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capaci...
9
● The Automobile Mission Plan (AMP) for the period 2006–2016, designed by
the government is aimed at accelerating and su...
10
11
TATA MOTORS LTD.
COMPANY HISTORY
Tata Motors Ltd is India's largest automobile company. The company is the leader
in co...
12
manufacture a number of utility vehicles (UV), including the Sumo, and the sports
utility vehicle (SUV), Tata Safari. A...
13
provide impetus to automobile Research and Development. In the year 1977, they
manufactured first commercial vehicle in...
14
year 2003, they launched Tata Safari Limited Edition CityRover, 135 PS Tata Safari
EXi Petrol and Tata SFC 407 EX Turbo...
15
During the year 2007-08, the company unveiled the TATA Nano, the world's least
expensive car at the Auto Expo 2008 in N...
16
2008, the Company introduced Tata Xenon- 1 Ton pickup truck in Thailand
through its subsidiary Tata Motors (Thailand) L...
17
During the year 2009-10, the company acquired 79% shares in Hispano Carrocera,
S A by way of exercise of the existing c...
18
Land Rover.
In September 2010, the company acquired 80% stake in Trilix Srl., Turin (Italy), a
design and engineering c...
19
20
21
22
SWOT Analysis
Strengths:
● The brand is very well established.
● Tata’s management is strengthened by the collective ex...
23
the luxury segment in the upcoming years.
● No major player in the electric car segment in the domestic market so ‘Indi...
24
4P’s of Tata Motors
Product
● Tata has a very wide range of products. It has passenger cars, utility vehicles,
Trucks, ...
25
Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department
continuously strives to bring new innovations in...
26
Place
● Channels of Distribution : In case of vehicles, dealership method of
distribution and sales is generally adopte...
27
Officers at the dealerships collect prospective customer databases and
perform cold calling to attract customers.
● Adv...
28
STP Analysis
Segmentation
● Segmenting is the process of dividing the market into segments based on
customer characteri...
29
Targeting
● Targeting is the process of choosing the most attractive segment on which the
product or service is to be m...
30
● The present situating of TATA Motors is "a car organization with reasonable
costs that you can depend on for its item...
31
Tata Motors vs. Competitors
32
33
34
Findings
1. Tata Motors is the third largest company in the passenger vehicles segment
and the leader in the commercial...
35
Suggestions
1. Find new and innovative ways to retain leadership in commercial segment.
2. Two-wheeler presents a large...
Upcoming SlideShare
Loading in …5
×

Marketing Strategies of Tata motors

19,013 views

Published on

Marketing strategies of Tata Motors, how the largest automobile manufacturer of India sells its products

Published in: Education
  • Be the first to comment

Marketing Strategies of Tata motors

  1. 1. 1 MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF UNDER GRADUATE DEGREE MARKETING STRATEGIES OF SUBMITTED BY: ANUJ GUPTA BBA (2014-2017) ROLL NO. : E-65 Faculty Guide: Ms. RajshreeSingh Student Name: Anuj Gupta Designation: AssistantProfessor Enrollment No.: A3906414554 Course & Batch: BBA (G)/2014-17 Amity University, Uttar Pradesh
  2. 2. 2 CERTIFICATE OF ORIGIN This is to certify that I, Mr. Anuj Gupta, a student of under graduate degree in BBA (2014-2017), Amity School of Business, Noida has worked under the able guidance and supervision of Ms. Abhilasha Singh, Assistant professor. This Minor Project report has the requisite standard for the partial fulfilment the Under Graduate Degree in Business Administration. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research. I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the report. Signature Name of Student: Anuj Gupta Enrollment No.: A3906414554 Signature of Project Coordinator Signature of Faculty Guide
  3. 3. 3 Acknowledgment I express my sincere gratitude to my faculty guide, Ms. Rajshree Singh, Assistant Professor, for her able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. Signature
  4. 4. 4 Research Methodology 1. Research objectives i. To study the various marketing strategies employed by TATA Motors ii. To recommend any alternative actions that can be taken by the company 2. Research design Research design refers to the manner of conducting the research. The design of my research is exploratory, which is based on secondary data. 3. Research limitations Despite the fact that I've attempted to scrutinize on the said goals however much as could be expected, it experiences certain constraints. The essential constraint is the time allotment, which because of being short, the exploration couldn't have been sufficiently exhaustive. The other is that because of the sources being auxiliary in nature, the data is pretty much in view of suspicions.
  5. 5. 5 TABLE OF CONTENTS Chapter Number Subject Page Number 1. Research Methodology 4 2. Introduction 6 3. Company History 11 4. SWOT Analysis 22 5. 4P’s of Tata Motors 25 6. STP Analysis 29 7. Tata Motors vs. Competitors 32 8. Findings 35 9. Suggestions 36 10. Conclusion 36
  6. 6. 6 Introduction The Indian auto industry is one of the largest in the world with an annual production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 percent over the last year. The automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile market owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share. India is also a prominent auto exporter and has strong export growth expectations for the near future. In FY 2014-15, automobile exports grew by 15 per cent over the last year. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020. Market Size The industry produced a total 14.25 million vehicles including PVs, commercial vehicles (CVs), three wheelers (3W) and 2W in April-October 2015 as against 13.83 in April-October 2014, registering a marginal growth of 3.07 per cent year-on-year. The sales of PVs grew by 8.51 per cent in April-October 2015 over the same period last year. The overall CVs segment registered a growth of 8.02 per cent in April- October 2015 as compared to same period last year. Medium & Heavy Commercial Vehicles (M&HCVs) registered very strong growth of 32.3 per cent while sales of
  7. 7. 7 Light Commercial Vehicles (LCVs) reduced by 5.24 per cent during April-October 2015 year-on-year. In April-October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and 3.22 per cent respectively in April-October 2015 over April- October 2014. Investments In order to keep up with the growing demand, several automakers have started investing heavily in various segments of the industry during the last few months. The industry has attracted foreign direct investment (FDI) worth US$ 13.48 billion during the period April 2000 to June 2015, according to data released by Department of Industrial Policy and Promotion (DIPP). Some of the major investments and developments in the automobile sector in India are as follows: ● Global auto major Ford plans to manufacture in India two families of engines by 2017, a 2.2 litre diesel engine codenamed Panther, and a 1.2 litre petrol engine codenamed Dragon, which are expected to power 270,000 Ford vehicles globally. ● The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up plants and increasing capacity in India. ● General Motors plans to invest US$ 1 billion in India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from 130,000 units a year to 220,000 by 2025. ● US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$ 525 million) in Maharashtra, to manufacture Jeep Grand Cherokee model.
  8. 8. 8 ● Mercedes Benz has decided to manufacture the GLA entry SUV in India. The company has doubled its India assembly capacity to 20,000 units per annum. ● Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has announced to procure components from seven India-based auto parts makers. ● Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based Peugeot Motocycles (PMTC). Government Initiatives The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route. Some of the major initiatives taken by the Government of India are: ● Government of India aims to make automobiles manufacturing the main driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26. ● In the Union budget of 2015-16, the Government has announced to provide credit of Rs 850,000 crore (US$ 127.5 billion) to farmers, which is expected to boost the tractors segment sales. ● The Government plans to promote eco-friendly cars in the country i.e. CNG based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent ethanol blending in petrol. ● The government has formulated a Scheme for Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission 2020 to encourage the progressive induction of reliable, affordable and efficient electric and hybrid vehicles in the country.
  9. 9. 9 ● The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the government is aimed at accelerating and sustaining growth in this sector. Also, the well-established Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays a part in providing a boost to this sector. Road Ahead India’s automotive industry is one of the most competitive in the world. It does not cover 100 per cent of technology or components required to make a car but it is giving a good 97 per cent, as highlighted by Mr Vincent Cobee, Corporate Vice- President, Nissan Motor’s Datsun. Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. The Indian automotive sector has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product, as per the Automotive Mission Plan 2016-26 prepared jointly by the Society of Indian Automobile Manufacturers (SIAM) and government.
  10. 10. 10
  11. 11. 11 TATA MOTORS LTD. COMPANY HISTORY Tata Motors Ltd is India's largest automobile company. The company is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. They are the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company is engaged in the development, designing, manufacturing, assembling and sale of vehicles, including financing thereof, as well as sale of related parts and accessories. They manufacture commercial vehicle, three passenger vehicle, truck and bus. They have a portfolio of automotive products, ranging from sub-1 ton to 49 ton gross vehicle weight (GVW), trucks (including pickup trucks) and from small, medium, and large buses and coaches to passenger cars, including the car, the Tata Nano. The company's segments include automotive, and others, which include information technology (IT) services, construction equipment manufacturing, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for certain applications, and investment business. The company's passenger cars include the Indica, the Indica Vista, the Indigo and the Indigo Marina. Jaguar produces four car lines: XK, XF, XJ and X-Type. They
  12. 12. 12 manufacture a number of utility vehicles (UV), including the Sumo, and the sports utility vehicle (SUV), Tata Safari. Also, they manufacture a variety of light commercial vehicles (LCVs), including pickup trucks, trucks and buses with GVW of between 0.7 ton and 7.5 tons. This also includes the Ace, a mini-truck with a 0.7 ton payload, the Magic, a passenger variant for commercial transportation and the Winger. They also manufacture a variety of medium and heavy commercial vehicles (M&HCVs), which include trucks, buses, dumpers and multi-axled vehicles with GVW of between 9 tons to 49 tons. The company's manufacturing plants are situated at Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). Through their subsidiaries and associate companies, the company has operations in the UK, South Korea, Thailand and Spain. Tata Motors Ltd was incorporated in the year 1945 with the name Tata Engineering and Locomotive Co Ltd for manufacturing locomotives and other engineering products. In the year 1948, the company introduced steam road roller in collaboration with Marshall Sons (UK). In the year 1954, they made collaboration with Daimler Benz AG, West Germany for manufacturing medium commercial vehicles. In the year 1959, they set up a Research and Development Centre at Jamshedpur. In the year 1961, they started to export their products and the first truck being shipped to Sri Lanka. In the year 1966, the company set up the Engineering Research Centre at Pune to
  13. 13. 13 provide impetus to automobile Research and Development. In the year 1977, they manufactured first commercial vehicle in Pune. In the year 1983, they commenced manufacturing of Heavy Commercial Vehicle. In the year 1985, the company produced first hydraulic excavator in collaboration with Hitachi. In the year 1986, they produced the indigenously designed light commercial vehicle Tata 407 followed by 608. In the year 1989, they introduced third LCV model, Tata Mobile 206. In the year 1991, the company launched first indigenous passenger car, Tata Sierra and in the next year, they launched Tata Estate. In the year 1993, the company signed a joint venture agreement with Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly diesel engines. In the year 1994, the company launched Tata Sumo and LPT 709. During the year, the company signed a joint venture agreement with Daimler - Benz / Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India. Also, they signed a joint venture agreement with Tata Holset Ltd, UK for manufacturing turbochargers to be used on Cummins engines. In the year 1995, they launched Mercedes Benz car E220 and in the next year, they launched Tata Sumo deluxe. In the year 1997, the company launched Tata Sierra Turbo and in the next year, they launched Tata Safari and Indica in the market. In the year 2000, they launched Indica 2000 and CNG buses. In the year 2001, they launched Indica V2, CNG Indica and Tata Safari EX. In the year 2002, the company signed a product agreement with MG Rover of the UK. Also, they launched Petrol version of Indica V2, EX series in Commercial vehicles, Tata Sumo Series and Tata Indigo. In the
  14. 14. 14 year 2003, they launched Tata Safari Limited Edition CityRover, 135 PS Tata Safari EXi Petrol and Tata SFC 407 EX Turbo in the market. In July 29, 2003, the name of the company was changed from Tata Engineering Co Ltd to Tata Motors Ltd. In the year 2004, the company acquired Daewoo Commercial Vehicle Company and renamed it as Tata Daewoo Commercial Vehicle Co. Ltd. This company launched the heavy duty truck 'NOVUS' in Korea. Also, the company launched Tata Indica V2, Tata LPT 909 EX, Sumo Victa and Indigo Marina during the year. In the year 2005, the company acquired 21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company. The company launched branded buses and coaches, namely Starbus and Globus in the market. Also, they launched Tata Ace,•Indigo SX series, Indica V2 Turbo Diesel, Tata TL 4X4 and Tata Novus. During the year, the company inaugurated a new factory at Jamshedpur for Novus. Also, they unveiled Tata Xover at the 75th Geneva Motor Show. In the year 2006, the company made a joint venture with Marcopolo, Brazil for manufacturing fully built buses & coaches for India & markets abroad. They launched Indica V2 Xeta and new Indigo range. Also, they unveiled new long wheel base premium Indigo & X-over concept at Auto Expo 2006. In the year 2007, the company and Thonburi Automotive Assembly Plant Co. (Thonburi) formed a joint venture company in Thailand to manufacture, assemble and market pickup trucks. They inaugurated Tata-Fiat plant at Ranjangaon. They launched long wheel base Indigo XL, Tata Spacio, Magic, Winger, Sumo Victa Turbo DI, Indica V2 Turbo with dual airbags & ABS and Safari DICOR 2.2 VTT range.
  15. 15. 15 During the year 2007-08, the company unveiled the TATA Nano, the world's least expensive car at the Auto Expo 2008 in New Delhi. Subsequently, the car was also unveiled at the Geneva Motor Show and received international acclaim. They commenced production of TATA Ace from their manufacturing facility at Uttarakhand during the year. During the year, the company developed new products for the M&HCV passenger carrier sub-segment and displayed in the Auto Expo 2008, a 28 seater bus and an air conditioned low floor bus developed through their joint venture - Tata Marcopolo Motors Ltd. In the LCV segment, the company introduced two new products - Magic and Winger, which hold a strong potential to shape the future of commercial passenger transportation in India. Further, the company unveiled the 1 Ton and CNG variant of Ace, Cargo Panel van, Xenon XT - a lifestyle pickup truck and Winger Executive office concept vehicle in the Auto Expo 2008. They showcased their new range of tactical and armoured vehicles for military and paramilitary forces in the Defence Expo 2008. These include Tata Light Specialist Vehicle, Light Armoured Troop Carrier, Tata 8x8 HMV and the armoured Tata Safari. During the year 2007-08, the company signed an agreement with Fiat Group automobiles SpA Italy and Fiat India Automobiles Pvt Ltd (FIAPL) for establishment of joint venture to manufacture passenger cars engines and transmissions at Ranjangaon in India. They sold 15% stake each, in their subsidiary companies, HV Axles Ltd (HVAL) and HV Transmissions Ltd (HVTL). In March
  16. 16. 16 2008, the Company introduced Tata Xenon- 1 Ton pickup truck in Thailand through its subsidiary Tata Motors (Thailand) Ltd. In June 2, 2008, the company acquired the businesses of Jaguar and Land Rover (a part of Premier Automotive Group of Ford Motor Co.) for USD 2.3 billion. Jaguar and Land Rover are in the business of development, manufacture and sale of high end luxury cars and SUVs respectively. The acquisition includes the ownership of three major manufacturing plants, two advanced design centres in UK a worldwide sales network, Intellectual Property Rights (including perpetual royalty free licenses) and Brands and Trademarks. During the year 2008-09, the company partially divested their stake in Tata AutoComp Systems Ltd an associate company, from 50% to 26%. Also, they sold their investment in Tata Teleservices Ltd. During the year, the company launched 28 new commercial vehicles. Among the new products launched during the year were LPT 3118 - a truck with lift axle, CNG variants of the Ace, Magic and Xenon, new range of LCV buses manufactured by Tata Marcopolo Motors and the ICV 909 bus. The company also completed the execution of their first order of 650 low floor buses to Delhi Transport Corporation (DTC). They have also bagged a second order of 1625 similar buses from DTC to be executed in financial year 2009-10, the total order value of which is over Rs 2200 crore. In May 2009, they also unveiled the World Truck range of their next generation heavy trucks.
  17. 17. 17 During the year 2009-10, the company acquired 79% shares in Hispano Carrocera, S A by way of exercise of the existing call option, through mutual agreement with the other shareholder, Investalia S. A., Spain, for a consideration of Euro 2 million (Rs 1371 lakh). Consequently, Hispano Carrocera, S A has become a 100% subsidiary of the company. Also, the company sold 20% stake in Telco Construction Equipment Company Ltd (Telcon) to Hitachi Construction Machinery Co Ltd. The company now holds 39.75% stake in Telcon. During the year, the company launched the new heavy truck range Prima. Also, they launched the new range of buses (based on the Prima platform with bodies being made by Tata Marcopolo displayed at the Delhi Auto Expo in January 2010). In small commercial vehicles, they launched the Ace EX and Super Ace. In June 2010, the company inaugurated the factory for the Nano mini car at Sanand, in the western state of Gujarat. The factory is having an initial capacity of producing 250,000 cars per year. During the year 2010-11, the company launched the Aria, a premium crossover with high-end features such as 4x4, Torque on Demand, ESP, six airbags. They launched BS IV compliant variants of the Indica and the Indigo CS, the Indica eV2 and Indigo eCS with segment leading fuel efficiencies. These vehicles are powered by the Company's 1.4L CRAIL engine. The company Elan, a high end variant of the Indigo Manza sedan. They launched Venture, a Multi Purpose Vehicle (MPV) on the Ace platform. The company expanded the Prima range launched during the previous year with the introduction of the Prima Construck range of tippers in the market. Also, the company launched the all new Jaguar XJ, the new 4.4 V8 diesel Range Rover and the new 2.2 diesel
  18. 18. 18 Land Rover. In September 2010, the company acquired 80% stake in Trilix Srl., Turin (Italy), a design and engineering company. The company increased their shareholding in Tata Precision Industries Pte. Ltd from 49.99% to 78.39% by subscribing to an additional 28.4% share of Tata Precision Industries Pte Ltd, Singapore on February 15, 2011. Tata Precision Industries Pte Ltd holds 100% shares of Tata Engineering Services Pte Ltd, hence Tata Engineering Services Pte Ltd also became a subsidiary.
  19. 19. 19
  20. 20. 20
  21. 21. 21
  22. 22. 22 SWOT Analysis Strengths: ● The brand is very well established. ● Tata’s management is strengthened by the collective experience of its partners and acquired companies. ● The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. ● Creation of an entirely new segment with TATA NANO. ● Acquisition of Jaguar and Land Rover. Weaknesses: ● The company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. ● Tata has not got a foothold in the luxury car segment in its domestic market. ● Positioning of TATA NANO . ● One weakness which is often not recognised is that in English the word 'tat' refers to items which are cheap and of bad quality. A brand sensitive British consumer might think twice before going for such a brand. Opportunities: ● The Nano could sell well in other geographic markets like that of China. ● Jaguar and Land Rover provide Tata with an opportunity to establish itself in
  23. 23. 23 the luxury segment in the upcoming years. ● No major player in the electric car segment in the domestic market so ‘Indica Vista electric’ and ‘Megapixel’ could just be the right answer for Indian consumers. Threats: ● Maruti Suzuki and Hyundai are major rivals in the small car market. ● Powerful competitors for the luxury market including Honda, Toyota, Ford and Volkswagen are beginning to push into the Indian market. ● Tata’s competitive price advantage will be under pressure as environmental regulations are tightened and material costs increase.
  24. 24. 24 4P’s of Tata Motors Product ● Tata has a very wide range of products. It has passenger cars, utility vehicles, Trucks, Commercial passenger Carriers and Defence Vehicles. ● Brand : 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, 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. ● 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. ● Innovations : The various motives behind buying an automobile are Need,
  25. 25. 25 Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas 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. ● 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. Price ● The prices of Tata motors are generally affordable acceptable by the general public at large. Tata always have something for the lower class people with Nano being their trump card. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Discount can be made from Company’s profit or from dealer’s profit at certain range. ● Pricing strategies: ○ Penetration pricing ○ Low pricing policy with minimum profit margin. ○ Though the one lakh price tag is not fixed by TATA group (in case of Tata Nano), it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company.
  26. 26. 26 Place ● 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. ● Physical Distribution : The commercial vehicles are manufactured at Jamshedpur,Lucknow and Pantnagar 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. Promotion ● Personal Selling : There is minimal personal selling involved. The Sales
  27. 27. 27 Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. ● 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. ● 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 rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali. ● 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.
  28. 28. 28 STP Analysis Segmentation ● Segmenting is the process of dividing the market into segments based on customer characteristics and needs. ● The main activity segmenting consists of four sub-activities. These are: 1. determining who the actual and potential customers are 2. identifying segments 3. analyzing the intensity of competitors in the market 4. selecting the attractive customer segments. ● The need for segmenting a market is based on the fact that no market is homogeneous. For one product the market can be divided in different customer groups. The variables used for this segmenting in these groups are usually geographical, psycho-graphical, behavioral and demographic variables. This results in segments which are homogeneous within and heterogeneous between each other. When these segments are known, it is important to decide on which market to target. ● TATA Motors basically segments the market based on the following markets :- ○ Geography - Whether the customers live in urban cities or suburban areas ○ Income ○ Uses - Commercial, Private etc.
  29. 29. 29 Targeting ● Targeting is the process of choosing the most attractive segment on which the product or service is to be marketed. After the most attractive segments are selected, a company should not directly start targeting all these segments -- other important factors come into play in defining a target markets. ● The four sub activities within targeting are: ○ defining the abilities of the company and resources needed to enter a market ○ analyzing competitors on their resources and skills ○ considering the company’s abilities compared to the competitors' abilities ○ deciding on the actual target markets. ● The major target segments of Tata Motors are:- ○ Low Income and Middle Income groups ○ People living in cities ○ Commercial use vehicles Positioning ● When the list of target markets is made, a company might want to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product.
  30. 30. 30 ● The present situating of TATA Motors is "a car organization with reasonable costs that you can depend on for its item execution, morals and, and profound quality".
  31. 31. 31 Tata Motors vs. Competitors
  32. 32. 32
  33. 33. 33
  34. 34. 34 Findings 1. Tata Motors is the third largest company in the passenger vehicles segment and the leader in the commercial vehicle segment. 2. The share of Tata Motors in passenger vehicles segment is low as compared to majot competitors Maruti and Hyundai, the former being the market leader. This maybe attributed to a number of factors:- a. Better products and services by competitors b. Better marketing strategies of competitors 3. However, the sales of Tata Motors in the passenger vehicle segment are slowly increasing. This maybe because of:- a. Customers preferring pocket friendly cars that provide comfort to costly cars b. Tata Emerging as a viable alternative to market leaders Maruti and Hyundai. 4. On the other hand, the sales of Tata Motors in the commercial sector, where it is a market leader, is slowly decreasing. It is losing out to its main competitor, Mahindra & Mahindra. 5. The two wheeler market is still unexplored by Tata Motors, so it is presents a new market.
  35. 35. 35 Suggestions 1. Find new and innovative ways to retain leadership in commercial segment. 2. Two-wheeler presents a large market with unexplored potential. The company should consider entering that market. Conclusion As per the findings, the marketing strategies of Tata Motors are fairly successful. In recent years however, they have become even more so successful, especially in the assenger vehicle sector. This shows that the customers are beginning to see Tata as a viable and good alternative to the market leaders. However, the market share of Tata in the commercial vehicle sector, where it is the leader, is slowly decreasing and the company is losing its foothold. This is mainly because of saturation of the segment for the company and its shifted focus towards passenger vehicles.

×