2. Tata Motors
• India's largest automobile company, with consolidated revenues of
INR 1,65,654 CR (USD 32.5 billion) in 2011-12.
• Leader in Commercial vehicles and
among the top three in Passenger vehicles
• It is the world's fourth largest truck and bus manufacturer.
• Employee Strength of Tata Motors Group: Over 55,000 employees
• 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.''
3. • Established in 1945, Tata Motors' presence indeed cuts across the length
and breadth of India.
• Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out
in 1954.
• Manufacturing base in India
– Jamshedpur (Jharkhand)
– Pune (Maharashtra)
– Lucknow (Uttar Pradesh)
– Pantnagar (Uttarakhand)
– Sanand (Gujarat)
– Dharwad (Karnataka)
Tata Motors
4. • January 2008:
– Tata Motors unveiled its People's Car, the Tata Nano
– The Tata Nano has been subsequently launched, as planned, in India in March
2009.
• May 2009:
– Tata Motors unveiled its new range of world standard trucks called Prima
• October 2010:
– Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover
• Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and
public transportation.
• It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
Tata Motors: Innovation
5. • Year 2012
– Tata Motors signs cooperation agreement with DRB-HICOM's Defence
Technologies (DEFTECH)
– Tata Motors showcases Anti-Terrorist Indoor Combat Vehicle concept at
DEFEXPO India 2012
– Tata Motors unveils Tata Safari Storme, Tata Ultra, Tata LPT 3723 new vehicles
at Auto Expo 2012
Tata Motors: Innovation
6. • 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: Overview
Year | Company Name Details More info
2004 | Daewoo
Commercial Vehicles
Acquisitions of South Korea's
second largest truck maker
Today two-thirds of heavy commercial vehicle
exports out of South Korea are from Tata Daewoo.
2005 | Fiat Strategic alliance It has set up an industrial joint venture with Fiat
Group Automobiles at Ranjangaon (Maharashtra)
to produce both Fiat and Tata cars and Fiat
powertrains
2005 | Hispano
Carrocera
Acquired a 21% stake in Hispano
Carrocera, a reputed Spanish bus
and coach manufacturer, and
subsequently the remaining stake
in 2009
Hispano's presence is being expanded in other
markets.
2006 | Marcopolo Joint venture with the Brazil-
based company (a global leader in
body-building for buses and
coaches)
Joint venture was formed to manufacture fully-
built buses and coaches for India and select
international markets
7. • 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.
Tata Motors: Overview
Year | Company Name Details More info
2006 | Thonburi Joint venture with Thonburi
Automotive Assembly Plant
Company of Thailand
Joint venture formed to manufacture and market
the company's pickup vehicles in Thailand.
2008 | Tata Africa
Holding (Pty) Ltd
Joint venture Joint venture formed for its assembly plant in
South Africa . The plant can assemble, from semi
knocked down (SKD) kits, light, medium and heavy
commercial vehicles ranging from 4 - 50 tonnes
9. • Tata has a very wide range of products it has passenger cars, utility
vehicles, Trucks, Commercial passenger Carriers And Defence Vehicles
Marketing Mix: Product
Passenger
cars
Utility
Vehicles
Trucks
Commercial
Passenger
Carriers
Indica vista Safari Dicor
Tata
Novas
Buses
Indigo XL
Sumo
Grande
TL 4×4 Winger
Nano Aria Magic
Fiat cars Xenon XT
10. Marketing Mix: Product
• 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/ Aria 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, 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.
• 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.
11. • 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
• Market Condition
• Costs incurred
• Profit percentage desired by the Co.
• Dealer Profit
• 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.
• 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.
Marketing Mix: Price
12. • Channels of Distribution:
– Tata Motors have 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.
Marketing Mix: Place (Channels of Distribution, Physical Distribution)
13. • 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.
Marketing Mix: Place (Channels of Distribution, Physical Distribution)
14. • 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.
• Advertising :
– 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.
Marketing Mix: Promotion
15. • Public Relations:
– 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.
Marketing Mix: Promotion
19. • Land Rover is a British car manufacturer with its headquarters in Gaydon,
Warwickshire, United Kingdom which specializes in four-wheel-
drive vehicles.
• It has been owned by the Indian company Tata Motors since 2008, forming
part of their Jaguar Land Rover (JLR) group.
• It is the second oldest four-wheel-drive car brand in the world (after Jeep).
• Jaguar Cars Ltd, known simply as Jaguar , is a British luxury and sports car
manufacturer, headquartered in Whitley, Coventry, England.
• It is part of the Jaguar Land Rover business, a subsidiary of the Indian
company Tata Motors.
Background: Jaguar & Land Rover : UK
20. • Political:
– The political environment in United Kingdom is quite stable and much
more organized than any other countries.
– The only problem that the firm may face is the high tax rates in this
country.
– Which makes it more expensive as the raw material increases the cost of
productions also goes up automatically and this is the reason why many
firms stay out of United Kingdom.
– There are also some policies by the labour contract to avoid exploitation
of labour which makes this country much more expensive
– The famous incident is Tata Nano project in west Bengal which had to be
shifted due to the political pressure and there were riots and big
problems. So this plant had to shift at different region finally it was decide
to Gujarat.
UK Market: PEST Analysis
21. • Today in financial crises every government is under tremendous pressure
for the lack of investment and increasing unemployment. Jaguar Land
Rover (JLR), Tata's UK-based car maker beset by recession and falling sales,
wants the Government to act as guarantor to underwrite a £340m loan on
offer from the European Investment Bank, but the Government is stalling.
It also wants Labor to encourage banks to advance it loans worth £400m
• “Tata Motors executives will warn Business Secretary Lord Mendelssohn
that they will scrap plans to build electric cars in the UK if it does not
receive a 10 million pound loan soon”. After launching the project “low
carbon industrial strategy” by Lord Mendelssohn Tata showed a great deal
of interest and decided to build electric cars and applied for 10 million
pounds loan. The firm secured 292 million pound loan from the European
Investment Bank in April, but this needs to be guaranteed by the British
Government and the two sides still cannot reach agreement on the
conditions, the paper reports. (ANI)
UK Market: PEST Analysis
22. • Sociological:
– Every International company faces socio-cultural problems, proper
research to overcome this problem is necessary.
– Geographically we are divided into different continents and every
country has its own cultural, according to this the company’s has to
adjust and make some changes to their approach.
– Jaguar on other hand is planning to shut down a factory and stop the
production for X-type cars. This move will cost 300 job cuts while
trying to adjust with changing economy, where it reported a loss of
521.8$ million in 2008-2009. Tata motors have also announced to
export Tata Nano in United Kingdom with some minor changes
according to the rules and regulations of the country.
UK Market: PESTEL Analysis
23. • Sociological:
– Tata in general has to look at the boarder view at the socio cultural
changes from its home country as in India is a developing nation the
labour laws are not so perfectly followed.
– There are lots of changes in cultural like Demographic, lifestyle
patterns changes, attitude towards issues like education and corporate
social responsibility and ethnic and religious matters.
UK Market: PESTEL Analysis
24. • There also been reports of cultural clashes in Tata led Nextel in South
Africa between South African Indian staff and those brought from India by
Tata Communications. This was denied later on by Windily Zoë, Nextel
executive head for corporate communications and branding
UK Market: PESTEL Analysis
25. • Technological:
– Tata has always looked positively towards technology and has invested
billions of pounds for it.
– Tata in UK did not face any technical problems as such but there are
plenty of threats that may cause these problems.
– As this is a more technically developed country the infrastructure
available is much more advance and stable then India.
– Tata motors European technical center (TMETC) brought up for R&D a
purpose which is steadily taking Tata motors towards achieving global
standards.
UK Market: PESTEL Analysis
26. • The Pune factory in India for Tata motors is more emphasized on human
hand rather than robotic arms, Ratan Tata believes that the labour in India
is cheap and investing more on robotic arms will push more individuals on
unemployment scale.
• The brand new factory being set up for Tata nano in Gujarat is more
technically advance to meet its demand.
UK Market: PESTEL Analysis
27. • Legal obligations:
– The political environment of United Kingdom is very stable and well
structured.
– The laws and trading policies are well developed which give minimum
exploitation to laborers and customers.
– Tata comes from India where the legal environment is not so stable
and the regulatory bodies are incapable to enforce laws.
– The British health and safety laws for the better conditions of workers
are the most strong and predominant
UK Market: PESTEL Analysis
28. • Legal obligations:
– Buying over Land Rover and Jaguar for 2.3$ billions Tata was under
tremendous pressure as there were mixed reactions from all Britain.
– Plenty feared about devaluation by Indian brand and suggested
government to take control of Jaguar brand, as it symbolizes best of
British.
– There were no real legal or political problems faced by this company in
United Kingdom.
– There were some MPs who did not like an Indian brand taking over
British Companies.
– India has the second largest investment from Asia with 75 projects in
2007-07.
– The future changes to be expected in the legislation are mostly based
on the environment effect and the green house effect on our earth.
UK Market: PESTEL Analysis
29. • Environmental:
– Today in the ever changing environment there is lot of pressure on
every industry to cut down there green house gases and cut the
pollution to minimum.
– As the climate change is a major problem in front of humans, the
changes in the basic system of industrialization is necessary.
– The Tata group has a set of explicit guidelines on environmental and
ecological issues, and a broad range of policies aimed at helping Tata
companies protect, conserve and restore our natural resources.
– It is quite clear that the major pollution is caused by automobile
industry and other commodities. Tata has its share of problems in this
sector as it launched the new product Tata nano the low price car
which is also to be sold in the European market by nano europa.
UK Market: PESTEL Analysis
30. • Environmental:
– Jaguar and land rover in UK have a different story, which is asking for
more investment to meet the fuel-economy regulation in EU.
– Land Rover doesn’t have a single model that comes near the EU's
proposed 120g/km CO2 fleet average emissions rating, let alone an
entire fleet averaging this,
– While Jaguar’s emissions levels are only marginally better.
UK Market: PESTEL Analysis
33. • TATA HISPANO is a prominent manufacturer of bus and coach bodywork in
Spain and Morocco, with sales in several other countries of Europe.
• TATA HISPANO is a 100% subsidiary of TATA Motors, the largest automobile
manufacturer of India, World‘s second largest bus manufacturer and
World‘s fourth largest truck manufacturer.
Background: Hispano Carrocera SA: Spain
34. • Political landscape
– The prime minister has launched a cross-party "anti-crisis" commission
aimed at arriving on a agreement to address the severe and ongoing
recession.
Spain Market: PESTLE Analysis
35. • Economic landscape
– The government set out its proposals to grant more loans to small
businesses amongst other measures on which it hopes to obtain cross-
party support to revive its stumbling economy.
Spain Market: PESTLE Analysis
36. • Social landscape
– The healthcare needs of its population are also being adequately met
by the public sector, although initiatives have been undertaken to
increase the involvement of the private sector.
– The labor market of Spain is moving from a system of temporary
contracts to permanent contracts. It will provide long-term
predictability to employers with respect to available employees.
Spain Market: PESTLE Analysis
37. • Technological landscape
– Spain Market is Technologically evolved market as compared to India
– But the country fares poorly in terms of the number of patents
received as compared to France in Germany.
Spain Market: PESTLE Analysis
38. • Legal landscape
– Spanish law permits foreign investment of up to 100% of equity, and
capital movements are completely liberalized.
– The authority of the Spanish competition commission has been
widened to make enforcement more effective.
Spain Market: PESTLE Analysis
39. • Environmental landscape
– The country's environmental policies have been developed along EU
guidelines.
– The strategy on sustainable development and on climate change has
been approved to reduce GHG emissions by developing a technical
construction code and a bonus system to encourage people to buy
energy efficient vehicles.
Spain Market: PESTLE Analysis
41. • There are two ways firms compete are by either
– a differentiation strategy or
– a low cost strategy.
• However, as we've seen the route TML has taken involves competing on
both strategies.
• While the Nano targets the price conscious common man, the Jaguar Land
Rover deal shows us that TML is now targeting brand conscious, high-end
consumers.
• In the whole; the group is acquiring the different strategy in the different
markets, in the home country Tata’s strategies are same as to cost
leadership and differentiation.
Conclusion
42. • Tata Motors is an overall strong company that has found strength and
expansion through its parent company, Tata Group, but also through its
numerous acquisitions and mergers.
• Although Tata Motors stock prices have fallen since the start of the 2008
year due to suggestions that Tata Motors is overreaching by adding luxury
brands to pair with the Nano, the world's cheapest car.
• Chairman of Tata Group, Ratan Tata, rejects suggestions that, ``We're not
trying to be a global player,'' he told reporters in New Delhi Jan. 10 after
unveiling the Nano, which will be built in a new plant costing 10 billion
rupees ($249 million).
• ``We will grow internationally in select markets'' (Krishnamoorthy).
Ratan Tata’s Say
