Tata motors a succesful brand


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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.Marketing mix, Brand Promotion.

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Tata motors a succesful brand

  1. 1. TATA MOTORS Brand HistoryT ata Motors was first established in 1935 as a locomotive manufacturing unit. The first commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata factory in Pune. Ever since its launch, the truck became highly successful. However, the success of the commercial vehicles was just the beginning of the flourishing and booming future of Tata Motors. The company went ahead diversifying itself and took up other products as well. Apart from exporting heavy-duty trucks, the company decided to come up with lighter versions for the local market. Thus, began the production of the first LCV (Light Commercial Vehicle) model, Tata 407 in 1986. Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler- Benz of Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992; a station wagon design based on the earlier Tata-Mobile (1989), a light commercial vehicle), Tata Sumo (1994; LCV) and Tata Safari (1998; Indias first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although initially criticized by auto-analysts, its excellent fuel economy, powerful engine and an aggressive marketing strategy made it one of the best selling cars in the history of the Indian automobile industry. A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the car to South Africa. The success of Indica played a key role in the growth of Tata Motors. In 2004 Tata Motors acquired Daewoos South Korea-based truck manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata Daewoo. In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano Carocera. Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to manufacture fully built buses and coaches. In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company. In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Debuting in South Korea, South Africa, the SAAR Countries and the Middle-East by the end of 2009. Tata acquired full ownership of Hispano Carrocera in 2009.
  2. 2. In 2010, Tata Motors acquired an 80% stake in the Italy-based design and engineering companyTrilix for a consideration of €1.85 million. The acquisition formed part of the companys plan toenhance its styling and design capabilities.In 2012, Tata Motors announced it will invest around 6 billion on developing Futuristic InfantryCombat Vehicles in collaboration with DRDO.Tata Motors financial power comes from the fact that its labor costs amount to only 9% of theprofit, a reason for which many other car producers, including Volvo decided to move operationsto India. Another important factor in Tatas success is the fact that the group holds severalmachine tools and metal producing plants, further reducing production costs.Apart from this, Tata does not lack the innovative spirit, bringing to the world the compressed aircar (One CAT) and the cheapest model ever produced, introduced at the 2008 Geneva auto show,the Tata Nano, a car which will set you back some $2.500. Also, Tata has expressed their wish tocome up with a car made 100% out of plastic, in an effort to fight rising costs for metalproduction.It seems that Tata Motors has the recipe for success and only time will tell where this carmanufacturer will head next. Company ProfileTata Motors Limited is Indias largest automobile company, with consolidated revenues of INR1, 65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in eachsegment, and among the top three in passenger vehicles with winning products in the compact,midsize car and utility vehicle segments. It is the worlds fourth largest truck and busmanufacturer.The Tata Motors Group’s over 55,000 employees are guided by the vision to be best in themanner in which we operate, best in the products we deliver, and best in our value system andethics.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. Thecompanys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) andDharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrialjoint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiatand Tata cars and Fiat powertrains. The companys dealership, sales, services and spare partsnetwork comprises over 3,500 touch points.
  3. 3. Tata Motors, the first company from Indias engineering sector to be listed in the New YorkStock Exchange (September 2004), has also emerged as an international automobile company.Through subsidiaries and associate companies, Tata Motors has operations in the UK, SouthKorea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a businesscomprising the two iconic British brands that was acquired in 2008. JLR supports two state ofthe art engineering and design facilities and three manufacturing plants (Solihull, CastleBromwich & Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo CommercialVehicles Company, South Koreas second largest truck maker. The rechristened Tata DaewooCommercial Vehicles Company has launched several new products in the Korean market, whilealso exporting these products to several international markets. Today two-thirds of heavycommercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motorsacquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, andsubsequently the remaining stake in 2009. Hispanos presence is being expanded in othermarkets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a globalleader in body-building for buses and coaches to manufacture fully-built buses and coaches forIndia and select international markets. In 2006, Tata Motors entered into joint venture withThonburi Automotive Assembly Plant Company of Thailand to manufacture and market thecompanys pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begunproduction of the Xenon pickup truck, with the Xenon having been launched in Thailand in2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors joint venture with Tata Africa Holding(Pty) Ltd., has its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gautengprovince of South Africa. The plant can assemble, from semi knocked down (SKD) kits, light,medium and heavy commercial vehicles ranging from 4 - 50 tonnes.Tata Motors is also expanding its international footprint, established through exports since 1961.The companys commercial and passenger vehicles are already being marketed in severalcountries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia andSouth America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, andSenegal.The foundation of the companys growth over the last 66 years is a deep understanding ofeconomic stimuli and customer needs, and the ability to translate them into customer-desiredofferings through leading edge R&D. With over 4,500 engineers and scientists, the companysEngineering Research Centre, established in 1966, has enabled pioneering technologies andproducts. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad inIndia, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the firstindigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in1998, the Tata Indica, Indias first fully indigenous passenger car. Within two years of launch,Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created a newsegment by launching the Tata Ace, Indias first indigenously developed mini-truck.In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and theworld have been looking forward to. The Tata Nano has been subsequently launched, as planned,
  4. 4. in India in March 2009. A development, which signifies a first for the global automobileindustry, the Nano brings the comfort and safety of a car within the reach of thousands offamilies.In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keepingwith its pioneering tradition, by unveiling its new range of world standard trucks called Prima. Intheir power, speed, carrying capacity, operating economy and trims, they will introduce newbenchmarks in India and match the best in the world in performance at a lower life-cycle cost. InOctober 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover.The Tata Aria redefines several benchmarks with its design and technologies, offering classleading features that take comfort and safety to a new height.Tata Motors is equally focused on environment-friendly technologies in emissions andalternative fuels. It has developed electric and hybrid vehicles both for personal and publictransportation. It has also been implementing several environment-friendly technologies inmanufacturing processes, significantly enhancing resource conservation.Through its subsidiaries, the company is engaged in engineering and automotive solutions,construction equipment manufacturing, automotive vehicle components manufacturing andsupply chain activities, machine tools and factory automation solutions, high-precision toolingand plastic and electronic components for automotive and computer applications, and automotiveretailing and service operations.Tata Motors is committed to improving the quality of life of communities by working on fourthrust areas employability, education, health and environment. The activities touch the lives ofmore than a million citizens. The companys support on education and employability is focusedon youth and women. They range from schools to technical education institutes to actualfacilitation of income generation. In health, our intervention is in both preventive and curativehealth care. The goal of environment protection is achieved through tree plantation, conservingwater and creating new water bodies and, last but not the least, by introducing appropriatetechnologies in our vehicles and operations for constantly enhancing environment care.With the foundation of its rich heritage, Tata Motors today is etching a refulgent future. Areas of businessTata Motors makes passenger cars, multi-utility vehicles and light, medium and heavycommercial vehicles.Passenger cars: The Company launched the compact Tata Indica in 1998, the sedan Indigo in2002 and the station wagon Indigo Marina in 2004.
  5. 5. Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck toheavy dumpers and multi-axled vehicles in the above 40-tonne segment.Passenger buses: The Company also manufactures and sells passenger buses, 12-seaters to 60-seaters, in the light, medium and heavy segments. Joint ventures, subsidiaries, associatesTata Motors has a joint venture (JV) with Marcopolo, the Brazil-based maker of bus and coachbodies. Tata Motors (SA) (Proprietary) is Tata Motors JV with Tata Africa Holding (Pty); theJV assembly plant at Rosslyn, Pretoria, assembles light, medium and heavy commercial vehiclesranging from 4-50 tonnes from semi knocked down kits. Other associates include: 1. Tata Daewoo Commercial Vehicle Company, a 100-percent subsidiary of Tata Motors in the business of heavy commercial vehicles (www.daewootruck.co.kr/). 2. Tata Motors European Technical Centre is a UK-based, 100-percent subsidiary engaged in design engineering and development of products. 3. Telco Construction Equipment Company makes construction equipment and provides allied services. Tata Motors has a 60 percent holding; the rest is held by Hitachi Construction Machinery Company, Japan (www.telcon.co.in/). 4. Tata Technologies provides specialized engineering and design services, product lifecycle management and product-centric information technology services (www.tatatechnologies.com/). 5. Tata Motors (Thailand) is a joint venture between Tata Motors (70 percent) and Thonburi Automotive Assembly Plant Co (30 percent) to manufacture and market the company’s pickup vehicles in Thailand (www.tatamotors.co.th/). 6. Tata Cummins manufactures high horsepower engines used in the company’s range of commercial vehicles (www.tatacummins.com/). 7. HV Transmissions and HV Axles are 100-percent subsidiaries that make gearboxes and axles for heavy and medium commercial vehicles. 8. TAL Manufacturing Solutions is a 100-percent subsidiary that provides factory automation solutions and designs and manufactures a wide range of machine tools (www.tal.co.in/).
  6. 6. 9. Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors acquired a 100 percent stake in 2009 (www.hispano-net.com/). 10. Concorde Motors is a 100 percent subsidiary retailing Tata Motors’ range of passenger vehicles (www.concordemotors.com/). 11. Tata Motors Finance is a 100 percent subsidiary in the business of financing customers and channel partners of Tata Motors. ProductsCommercial vehicles Tata Ace Tata Ace Zip Tata Super Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engined Low Floor bus chassis) Tata 1518C (Medium truck) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city, intercity, school bus and standard passenger transportation) Tata Divo (Hispano Divo; Fully built luxury coach) Tata CityRide (12 – 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8×2) Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6×4) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo) Tata Prima LX (Stripped down version of Tata Prima)
  7. 7. Military vehicles Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (4×4) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions Tata LPTA 713 TC (4×4) Tata LPT 709 E Tata SD 1015 TC (4×4) Tata LPTA 1615 TC (4×4) Tata LPTA 1621 TC (6×6) Tata LPTA 1615 TC (4×2) Tata Winger Passenger Mini Bus Tata Landrover 1515 F Factors of SuccessStrong Presence in the MarketplaceTata Motors is the only company in India with a broad-based presence across the industry, in allsegments of the commercial vehicles market –heavy and medium commercial vehicles, lightcommercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsizecar and utility vehicle segments - of the passenger vehicles market.Unique Understanding of Customer NeedWith 50 years’ presence in the automotive business, Tata Motors understands customer needsand develops products that meet their needs. To consider a few examples, as early as 1980s, thecompany launched Light Commercial Vehicles, amidst Japanese competition, in which it todaystrongly leads. In the 1990s, anticipating the need for an affordable family car, it launched thenow famous Tata Indica, which occupies a leading position among compact cars. This keensense of the customer pulse led the company to launch in 2005, the Tata Ace, India’s first subone tonne mini-truck, as a last-mile distribution vehicle once again creating a new market. Goingforward, Tata Motors has anticipated that non-car owning families, at the bottom of the pyramid,will look for an extremely affordable vehicle, providing exceptional value and this small car willbe launched in 2008.Skill Base Developed Over the Last 40 YearsTata Motors is also very well-placed on technology capability. The company had set up itsEngineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-the-art development, testing and validation facilities, it is this technology capability which has,
  8. 8. allowed Tata Motors, over the decades, to offer indigenously developed products. This strengthhas been accentuated, with the inclusion of TMETC, TDCV and Hispano Carrocera in the R&Dnetwork, besides several other specialist external agencies. The company no longer needs todevelop every necessity itself. Today it just has to manage the process of product creation,drawing upon already available R&D and skills from different sources.People StrengthThe company’s key strength is its people. The over 22,000 employees comprise a very broadtalent base, with the required skills in every aspect of the industry. With increasing internationalinitiatives by the company, this talent base is now getting enriched with the necessarycompetencies to respond to meet world-class standards of quality and cost Tata Motors Success MantraTata Motors is Indias largest company in the commercial vehicle sector. The company is theworlds fourth largest truck manufacturer and second largest bus manufacturer in the world. InIndia, Tata Motors is the leader in every commercial vehicle segment and it is the third largestpassenger car maker.Tata Motors is able to produce more than 4 million different types of vehicles such as cars,trucks, commercial vehicles, SUVs and many more since the company began in 1945.The marketing strategy of Tata Motors is one of the most successful marketing strategies used bya car maker in the car industry. The car company lays emphasis on the Product Branding andAdvertising. Advertising is the common way to make public aware of the new product. Besides,advertising also help to create a brand image. Over the years, Tata Motors have been successfulin their own might in creating a brand image for itself.Tata Motors also stresses on the packaging, innovations and quality control of a product. TataMotors is being able to provide many innovative features to lure customers. E.g., the Tata Safari4X4 Dicor with its "Reverse Guide System", where a weather-proof camera is fixed to the rearend of the car to help the driver while reversing the car.The pricing policy of Tata Motors is always appreciated by the public. The price of a car can bedetermined by factors such as market condition, cost incurred to build a car, profit by companyand dealer profit. Tata Motors makes use of strategies such as discount and special promotions
  9. 9. every now and then. This attracts car lovers to opt for a Tata car. Tata Motors gives discountsbased the companys profit or from dealers profit at a certain range.Tata Motors has felt its presence across India and abroad with its showrooms. This is anothermarketing strategy of Tata Motors that boosts sales of vehicles.The car company has established many servicing centers as well which stands as a back bone forthe company to connect with the people. Tata Motors easy access to the general public has madethe brand grow in size and stature. Tata, due to its presence in the commercial as well as thepassenger vehicle segment, know the pulse of the people unlike many other car makers. Tatawhich is a huge conglomerate has branched its business into various segments like finance,banking, public sectors domains and other major fields apart from automobiles which has madeTata a household name in India and abroad. Marketing mix TATA MOTORS1. Product: Tata has a very wide range of products it has passenger cars, utility vehicles,Trucks, Commercial passenger Carriers and Defense Vehicles. Passenger cars Utility Vehicles Trucks Commercial Passenger CarriersIndica vista Safari Dicor Tata Novas BusesIndigo XL Sumo Grande TL 4×4 WingerNano Sumo MagicFiat cars Xenon XT2. Price: The prices of Tata motors are generally affordable acceptable by the general public atlarge. 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 thestrong strategy use by Tata Motors. Discount can be made from Company’s profit or fromdealer’s profit at certain range.3. Place: Tata Motors has an extensive dealer network covering Indian and Internationalmarkets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. Thechannel of distribution, physical location, and dealership method of distribution and sales isgenerally adopted. The distribution of vehicle must be in a very systematic way, from the plant todealership and to end user. This is not only in India itself but also to the world-wide dealership.
  10. 10. 4. Promotion: Tata motors promote their products via Advertising and after sales services5. People: Tata Motors owe our success to the highly motivated and talented staff. Ourrecruitment division picks the crème-de-la-crème from premier universities, management andengineering institutes in India. they put them through rigorous training programmes to hone theirentrepreneurial skills and impart comprehensive product knowledge.6. Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for achievingexcellence in overall Company performance.7. Physical Evidence: The management of the company has managed to keep their hopes aliveeven in this recession and hopes that the worse is behind Tata Motors recently launched the mostawaited car of the year, Tata Nano and the company has already received 203,000 booking thatare fully paid and 70 percent of the applicants are ready to wait till the end of 2010 for the car tobe manufactured.