Marketing Promotion - TATA MOTORS

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Analysis and recommendation of promotion strategy for TATA MOTOS PCBU. The project was completed in Jamshedpur

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Marketing Promotion - TATA MOTORS

  1. 1. Under the guidance of : Mr. Diptimoy Nayak TSM – Tata Motors & Dr.Anurag Singh FMS BHU Submitted by : Sajal Kishore FMS BHU MBA Roll No - 54
  2. 2. Industry Profile Company Profile SWOT Analysis Research Methodology Findings, Suggestions & Limitations
  3. 3.  The automotive industry in India is one of the largest in the world and one of the fastest growing globally .  According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world ,growing from 16 to 18 percent to sell around three million units in the course of 2011-12.  As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world.  The dominant products of the industry are two-wheelers with a market share of over 75% and passenger cars with a market share of about 16%.  Both exports and imports of passenger cars are increasing. The demand determinants of the industry are factors like affordability, product innovation, infrastructure and price of fuel. Also, the basis of competition in the sector is high and increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the advantages of this sector in India are yet to be leveraged.  According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020.By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the roads.
  4. 4. 1061572 1143076 1379979 1549882 1552703 1951333 2520421 166402 175572 198452 218401 335739 446145 453479 0 500000 1000000 1500000 2000000 2500000 3000000 2004-'05 2005-'06 2006-'07 2007-'08 2008-'09 2009-'10 2010-'11 SALES EXPORT
  5. 5. • Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It 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. It is the world's fourth largest truck and bus manufacturer. • The Tata Motors Group’s over 55,000 employees are guided by the VISION to be ''best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.'‘ • Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. • Tata Motors is also expanding its international footprint, established through exports since 1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal. • QUALITY POLICY : TATA Motors is committed to maximizing customer satisfaction & strives to achieve the goal of excellence through ongoing development, manufacture and sale of reliable ,safe, cost effective quality products & services of International standards, using environmentally sustainable technologies for improving levels of efficiency and productivity within the plants and ancillaries. TATA Motors also had a commitment towards improving the quality of life of its employees both within and outside its plants and offices through improved work practice & social welfare schemes. - Ratan N TATA
  6. 6. 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. WEAKNESS: •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 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.
  7. 7. Regional Product Manager Area Sales Head TATA PCBU Jsr
  8. 8. The promotion functions carried out by TATA PCBU can be divided into ATL – Above the line promotions which include print ads( newspaper ,magazines) , T.V , radio BTL – Below the line promotions which include exchange fair, rural fair, loan fair, society activities, corporate display activities etc..
  9. 9. 1. To study the preference of young employees while buying a car so as to develop a promotional strategy for TATA PCBU. 2. To analyze the potential of using two wheeler mechanics as referrals for TATA NANO in the 2 wheeler exchange business.
  10. 10.  RESEARCH OBJECTIVE 1 : To study the preference of young employees while buying a car so as to develop a promotional strategy for TATA PCBU.  Research Design : Descriptive  Population : Young Employees of  TATA STEEL  TATA MOTORS  AEGIS  TATA CUMMINS  BANKS ( ICICI, SBI, PNB )  Sampling Unit: Individual employee  Sample size : 250 (50 from each company)  Sampling technique : Convenience Sampling  Nature of data : Primary  Location of study : Jamshedpur  Duration of study : 6 weeks
  11. 11. FINDINGS
  12. 12. 19 6 23 2 16 6 27 1 37 7 5 1 26 4 18 2 10 5 32 3 0 5 10 15 20 25 30 35 40 STATUS RIGHT TIME UTILITY OTHERS AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS
  13. 13. 20 21 2 7 23 14 5 8 39 2 7 2 29 5 10 6 12 16 17 5 0 5 10 15 20 25 30 35 40 45 AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS
  14. 14. 19 15 3 7 3 3 17 11 4 4 9 7 25 3 5 9 4 4 16 17 6 4 4 3 11 18 2 3 15 1 0 5 10 15 20 25 30 AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS
  15. 15. 17 18 5 10 1 4 14 31 0 3 30 17 1 3 24 22 3 5 37 5 0 5 10 15 20 25 30 35 40 P<3 3<P<4 4<P<5 P>5 AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS Price (P) in lakhs
  16. 16. 30 20 0 0 10 31 5 4 2 22 17 9 1 19 21 9 4 37 6 3 0 5 10 15 20 25 30 35 40 D < = 1 1 < D < 3 3< D < 5 D > 5 AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS DOWNPAYMENT D IN LAKHS
  17. 17. 42 5 3 0 35 12 1 22 18 25 54 19 26 1 41 6 2 1 0 5 10 15 20 25 30 35 40 45 E < 10 10 < E < 15 15 < E < 20 E > 20 AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS EMI E IN THOUSANDS
  18. 18. 20 4 17 9 19 1 20 10 21 2 15 12 17 4 21 8 23 1 3 13 0 5 10 15 20 25 DIWALI YEAR END BONUS ANYTIME AEGIS TATA MOTORS TATA STEEL TATA CUMMINS BANKS
  19. 19. COMPANY INTERESTS FEATURES COLOUR TIME AEGIS STATUS -38 UTILITY-46 AESTHETICS -40 SAFETY -42 BLACK-38 RED -30 DIWALI -40 BONUS -34 TATA MOTORS STATUS -32 UTILITY-54 AESTHETICS -46 SAFETY -28 BLACK-34 RED -22 DIWALI -38 BONUS -40 TATA STEEL STATUS-74 AESTHETICS -78 SPACE -14 BLACK-50 BLUE -18 DIWALI -42 BONUS -30 TATA CUMMINS STATUS-52 UTILITY-36 AESTHETICS -58 SPACE -20 BLACK-32 RED -34 DIWALI-34 BONUS -42 BANKS UTILITY-64 STATUS-20 SAFETY -32 SPACE -34 WHITE-30 RED -36 BLACK-22 DIWALI -46 ANYTIME -26
  20. 20. COMPANY PRICE BRACKET (lacs) DOWN PAYMENT (lacs) EMI BRACKET (thousands) AEGIS P<3 - 34 3<P<4 - 36 D<1 - 60 1<D<3 - 40 E<10 - 84 TATA MOTORS 4<P<5 - 28 P>5 - 62 D<1 - 20 1<D<3 - 62 E<10 - 70 TATA STEEL 4<P<5 - 60 P>5 - 34 1<D<3 - 44 3<D<5 - 34 10<E<15 - 36 15<E<20 - 50 TATA CUMMINS 4<P<5 - 48 P>5 - 44 1<D<3 - 38 3<D<5 - 42 10<E<15 - 38 15<E<20 - 52 BANKS 4<P<5 - 74 1<D<3 - 74 E<10 – 82
  21. 21. COMPANY TIME OF PROMOTION COLOUR OF PRODUCTS HIGHLIGHTS PRODUCTS SUGGESTED AEGIS DIWALI OR BONUS BLACK,RED AESTHETICS & SAFETY NANO, INDICA TATA MOTORS DIWALI OR BONUS BLACK,RED AESTHETICS & SAFETY INDICA VISTA,INDIGO TATA STEEL DIWALI OR BONUS BLUE,BLACK SPACE & AESTHETICS MANZA, INDIGO ECS,SAFARI TATA CUMMINS DIWALI OR BONUS BLACK,RED SPACE & AESTHETICS MANZA,INDI GO ECS, SAFARI BANKS DIWALI WHITE,BLACK RED SAFETY, AESTHETICS & SPACE INDICA VISTA, INDIGO
  22. 22.  Use black & red products in ATL promotions.  Organizing display activities and campaigns as BTL promotions taking into account the findings from the research.  Heavy promotions during Diwali and at the time employees receive bonus.  The findings related to down payments and EMI’s be analyzed by higher authorities so as to make convenient offerings to the consumers.  Corporate offers for the employees of TATA on respective products as mentioned in the findings.
  23. 23.  Time constrain
  24. 24.  RESEARCH OBJECTIVE 2 : To analyze the potential of using two wheeler mechanics as referrals for TATA NANO in the 2 wheeler exchange business.  Research Design : Exploratory & Descriptive  Population : Two wheeler mechanics  Sampling Unit: Individual mechanic  Sample size : 77  Sampling technique : Convenience Sampling  Nature of data : Primary and Secondary  Location of study : Jamshedpur  Duration of study : 4 weeks
  25. 25.  SECONDARY DATA ANALYSIS:  While going through sales data of the company in Jamshedpur , it was found that there is a huge potential for automobile exchange business and it has been growing in the recent months.  It was also seen that the 2 wheelers exchanged were less in number as compared to 4 wheelers.  TATA NANO, being a special product for TATA is required to be sold in high volumes through the exchange business . It can be seen that there have been only a few automobiles exchanged with NANO in the recent months.  A special exchange offer was introduced only for TATA NANO in the month of FEB-2012 so as to boost up sales and it can be seen that the exchange business of TATA NANO increased in the following month.  The Territory Sales Manager , when informed about the same, had a talk with the Area Sales Head and his team and then it was decided to focus on the exchange of TATA NANO with 2 wheeler vehicles as this was a good opportunity to be exploited.
  26. 26. 12 9 17 14 4 7 10 46 106 48 50 47 0 20 40 60 80 100 120 APRIL MAY JUNE JULY AUGUST SEP OCT NOV DEC JAN FEB MARCH TOTAL EXCHANGE
  27. 27. 8 8 15 12 4 7 10 44 106 48 50 47 4 1 2 2 0 0 0 2 6 4 5 14 6 4 3 6 1 0 1 4 15 9 16 15 0 20 40 60 80 100 120 CARS BIKES NANO
  28. 28.  2 wheeler mechanics were contacted area wise so as to invite them for a meeting . Following areas were taken into consideration : Telco Govindpur Tinplate Golmuri Sakchi Bistupur Kadma Mango
  29. 29. * Willingness to work with TATA for mutual benefit ? * Willingness to work as referrals for TATA NANO in the 2 wheeler exchange business ? 90% 10% YES NO 55% 45% YES NO
  30. 30. * If no, the reason for the same ? * Willingness to work as referrals for TATA NANO if offered a gift amount for sale of each car: 60% 7% 24% 9% fear of shrinking 2 wheeler business personal reasons no time for it others 92% 8% YES NO
  31. 31.  TATA NANO banners portraying the exchange offer were put on all the mechanic shops.  Mechanics were told how to refer TATA NANO to the 2 wheeler owners.  ‘Panthers’ were given the duty of regular follow ups and each area had a different panther to administer sales.  If a panther got a call from a customer regarding the offer , he was to inform the Sales Office from where further follow ups were done.  Subsequently, the mechanic had to call up the panther and inform him about the referral.  If the sale was made, the mechanic was to be given a gift amount of Rs 2000.
  32. 32. MECHANICS REFERS CUSTOMERS BUY A NANO PROFIT FROM SALES
  33. 33.  THERE IS HIGH POTENTIAL IN THIS CHANNEL AS 5 TATA NANO’S WERE SOLD USING MECHANICS AS REFERRALS IN A PERIOD OF 4 WEEKS .
  34. 34.  The information regarding the sale of TATA NANO via a mechanic should be conveyed to other mechanics in subsequent meetings so as to encourage them.  Considering long term prospects, a better system needs to be developed for the delivery of gift amount to the concerned mechanic with ease and also to verify the authenticity of the claim made by him.  Regular follow up should be done and it should be made sure that the banners are put on mechanic shops.
  35. 35.  Only a few areas in the city were targeted for this project as it had to be completed within the given time period.  The success of this project depends solely on the willingness of the mechanics to work as referrals.
  36. 36.  ….QUERIES ???

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