History of TATA Motors
Initially called TELCO, Tata Engineering and
Tata Motors is a part of the Tata Group.
It entered the locomotive market in 1945.
In 1954, it tied up with Daimler Benz to enter the
It entered the passenger vehicle market in 1991 with
Tata Motors is currently into a wide variety of
vehicles in various vehicles:
Commercial Vehicle Segment (Ace, Starbus ,Novus
Passenger and Utility Segment (Nano, Indigo, Aria,
Military Vehicles (LSV, Troop Carrier).
Public Vehicle (Buses, Mini Bus).
Total Revenue (2012-2013) – Rs. 189529 (crores).
Total Profit (2012-2013) – Rs. 9893 (crores).
Listed on BSE and NYSE.
Car’s produced (India & Globally) – 606,963.
Subsidiaries: Jaguar, Land Rover, Hispano, Daewoo
Global Operations: UK, Thailand, South Korea and
Plants in: Jamshedpur, Pune, Patnagar, Lucknow,
Dharwad, Sanand, Argentina.
Buying Process and Variables
There are various variables that affect the consumer
whilst buying a particular product, these are:
Influence by the seller.
Family and Group Influence.
Post Purchase services.
Influence by the seller
Various offers to attract buyers during festive seasons.
Ad’s with famous brand ambassadors to promote it.
Free insurance schemes, AMC discounts.
Good finance link-ups and options as per the
Tata Motors is clearly trying to step up it's game by a
makeover of all Tata cars.
Karl Slym has identified three critical factors in this
-Lack of development of existing models.
-Consumer perception of Tata cars being good only as
Low quality products is undoubtedly reducing sales of
Lack of quality was a result of more than one supplier
of car parts.
Family and Group Influence
Indian middle class can be divided into 3 different
economic categories namely, Aspirers, Seekers, Strivers.
Aspirers (Low Income Class) - They earn between Rs.
90,000 - Rs 200,000 per year. Farmers, Small shop
Seekers (Middle Class)- They earn between Rs
200,000 - Rs 500,000 per year. University/College
freshers to mid level government and business
Strivers (Upper Middle Class) - They earn between Rs
500,000 - Rs 1,000,000 per year. senior government
and business officials to managers to skilled
TATA motors aims majorly on Aspires and Seekers.
Also brands that identify and support family values
are accepted and they perform well in the Indian
TATA branding aims exactly on Indian families and
Tata Motors has effectively catered to different
people with different lifestyles.
The efficient R&D always came up with the right kind
of cars for the right segment of people.
Matched up competitors with Hatchbacks, Sedans as
well as SUV’s.
Car’s varying from 1.24 lacs to 15 lacs.
Post Purchase Services
Easily and readily available spare parts.
Large network of workshops (Dealers workshops and
Good feedback system and the desire to give better
Scheduled maintenance call reminders.
Dedicated GRS team for all clients. (commercial and
passenger vehicle segment.
The following aspects of market segmentation have
been included in this presentation:
Age of end user – Different age/generations would
prefer a different car.
The Family size plays a big role on the selection of a
car, for a nuclear family, a Tata India/Nano can suit
the need whilst for a big family, a Tata Sumo/Aria can
Tata Motors also plays a significant roll for portraying
their cars to different occupation based people. (For
eg. Tata Manza (executive finish) for the executives,
whilst the Tata Nano for students and the youth.
Low Income class
Low Middle Income Class Indica, Indigo
Upper Middle Income
Upper Income Class
Aria, Safari Grande
Jaguar, Land Rover
Size of population
TML’s passenger car market share fell to 8.9% for the
four months ended July 2013, from 11.8% in the
financial year ended 31 March.
One of the most established company in the
Wide and extensive distribution and service network.
Highly diversified product and portfolio.
Dedicated engineering and R&D department.
Highly diversified product and portfolio.
Dedicated engineering and diversified environment
Limited international presence.
Faces issues with alleged quality and durability issues.
Does not have a significant foothold in the luxury car
segment in the Indian market.
A follower and not a leader in the market (besides
Leveraging mergers and acquisitions to acquire newer
Leveraging customer engagement experience to
acquire new customers.
Increasing per capita income and purchasing
capability of potential customer base.
Joint ventures in other countries allow TATA motors
to easily enter into new market.
Competitors from other automobile companies.
Safety provisions in cars.
No R&D in alternate energy cars.
Slogans by TATA Motors
More Dreams per Car.
Reclaim your Life – TATA Safari
More than meets the Eyes – TATA Grande
Khushiyon ki Chabi – TATA Nano