Tata motors - Consumer Buyer Behavior


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A Consumer Buyer Behavior overview on Tata Motors Ltd.
SWOT + Market Segmentation

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Tata motors - Consumer Buyer Behavior

  1. 1. A presentation on the their passenger vehicles.
  2. 2. Group
  3. 3. History of TATA Motors Limited. Initially called TELCO, Tata Engineering and Locomotive Company. 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 commercial market. It entered the passenger vehicle market in 1991 with Tata Sierra.
  4. 4. Company Profile Tata Motors is currently into a wide variety of vehicles in various vehicles:  Commercial Vehicle Segment (Ace, Starbus ,Novus etc.)  Passenger and Utility Segment (Nano, Indigo, Aria, Sumo etc.)  Military Vehicles (LSV, Troop Carrier).  Public Vehicle (Buses, Mini Bus).
  5. 5. 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 Spain. Plants in: Jamshedpur, Pune, Patnagar, Lucknow, Dharwad, Sanand, Argentina.
  6. 6. Products: Tata Nano Tata Indica Tata Indigo Manza Tata Aria Tata Safari Storme  Tata Ace Tata Sumo Grande
  7. 7. Buying Process and Variables There are various variables that affect the consumer whilst buying a particular product, these are:  Influence by the seller.  Perception.  Family and Group Influence.  Lifestyle  Post Purchase services.
  8. 8. 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. Breakdown support. Good finance link-ups and options as per the customers needs.
  9. 9. Perception 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 regard. -Poor quality -Lack of development of existing models. -Consumer perception of Tata cars being good only as taxis
  10. 10. Low quality products is undoubtedly reducing sales of Tata cars. Lack of quality was a result of more than one supplier of car parts.
  11. 11. 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 owners. Seekers (Middle Class)- They earn between Rs 200,000 - Rs 500,000 per year. University/College freshers to mid level government and business executives.
  12. 12. 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 professionals. 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 market. TATA branding aims exactly on Indian families and values.
  13. 13. Lifestyle 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.
  14. 14. Post Purchase Services Easily and readily available spare parts. Large network of workshops (Dealers workshops and Tata workshops). Good feedback system and the desire to give better services. Scheduled maintenance call reminders. Dedicated GRS team for all clients. (commercial and passenger vehicle segment.
  15. 15. Market Segmentation The following aspects of market segmentation have been included in this presentation:  Demographic.  Psychographic.  Socio-economics.  Behavioural.
  16. 16. Demographic. 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 be used. 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.
  17. 17. Market Tata Product Low Income class Tata subsidiary Product Nano, Indica Low Middle Income Class Indica, Indigo Upper Middle Income Class Manza, Sumo Upper Income Class Aria, Safari Grande Jaguar, Land Rover
  18. 18. Geographic Nations Size of population Climate Roads
  19. 19. Psychographic Activities Interest Attitudes
  20. 20. Behavioralistic Benefits Usage Brand Loyalty Readiness to buy
  21. 21. Statistics Tata Motor’s segment-wise market share.
  22. 22. Market Share in Utility Vehicles
  23. 23. 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.
  24. 24. SWOT Analysis Strengths:  One of the most established company in the automobile sector.  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
  25. 25. Weaknesses:  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 nano).
  26. 26. Opportunities:  Leveraging mergers and acquisitions to acquire newer technology.  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.
  27. 27. Threats:  Competitors from other automobile companies.  Safety provisions in cars.  No R&D in alternate energy cars.
  28. 28. 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