A Project Report On Advertising Strategy of TATA Motors
A Project Report On Advertising Strategy of TATA Motors
Project Report
On
SESSION 2020-21
This is to certify that the Project Report on “Advertising Strategy of TATA Motors”
submitted in Partial Fulfillment for the Award of BBA Degree to ST. THOMAS COLLEGE,
BHILAI Affiliated to Hemchand Yadav Vishwavidyalaya, Durg, C.G is the genuine work
done by “Rahul Kange” under our supervision and guidance.
I, Rahul Kange, student of BBA 6th semester, hereby declare that this Project Report on
the topic “Advertising Strategy of TATA Motors” is my original work. This work was
done as a requirement for the Partial Fulfillment for the Degree of Bachelor of Business
Administration given by Hemchand Yadav Vishwavidyalaya, Durg. All the information
and data given in this Project are authentic to the best of my knowledge and are taken
from reliable sources.
Rahul Kange
BBA 6th semester
ACKNOWLEDGEMENT
Words never seemed so inadequate to acknowledge the kind cooperation and guidance
that has been received for this project. Many people have expressed their able and
timely support and it is only because of them that this study was made possible.
This project report bears the imprint of many people who have extended their invaluable
suggestions and cooperation in its materialization.
I would like to express my special gratitude to our principal sir, Dr. M. G. ROYMON,
who allowed me to do this project report.
Rahul Kange
BBA 6th semester
CONTENTS PAGE NO.
CHAPTER-1: INTRODUCTION 01-27
1.1: Concept of Advertising 02
1.2: Steps involved in the Advertising. 09
1.3: Methods used in the Advertising Process 14
BIBILOGRAPHY APPENDIX
Questionnaire
CHAPTER 1: INTRODUCTION
In recent years, with the appearance of social media, traditional print and broadcast media as
main promotional tools have faced major challenges, as many newspapers and television
channels have suffered audience reduction. Overwhelmingly, the majority of marketers, both
business and political, have started to use some form of social media for promotional purposes.
The overall purpose of this research is to characterize the similarities and differences of the
use of social media as promotional tool by political parties and companies. This research is
exploratory in nature and the data collected is qualitative. In order to conduct this research, we
have interviewed two political parties and two companies. Taking into account the new
communication paradigm from Man gold and Faulds as a base, we asked questions about how
they use each element of the promotional mix in social media. The findings showed that the
use of social media for promotional purposes was rather similar between the companies and
political parties. Analyzed data showed that political parties, in their social media activities,
were focused on public relations and personal selling in a form of online interactions with
voters, while the companies only focused on public relations. This research demonstrates that
both political parties and companies still have not fully integrated social media for promotional
purposes and that they still rely on traditional media for promotion. Measure the impact of
marketing activities on decisions to visit the platform and on decisions to create and buy
content. The model explains individual-level choices as a function of consumer characteristics
and marketing activities, allowing for interdependence of decisions within and across users.
Our results compare four types of marketing activities: price promotions, firm online activities,
content creator referrals, and public relations efforts. We show that price promotions have
strong effects on purchases, while content creator referrals and public relations have significant
effects on all user decisions.
An interesting feature of the data is that the price distribution in the absence of promotional
activities first order stochastically dominates that under display or feature advertising. The
theoretical model we introduce can yield an equilibrium that is consistent with the above
observations
Promotion is true that products are manufactured to satisfy the needs of the consumers.. But
alone is not enough. Today the responsibility of the manufacturers does not cease with physical
production whatever may be the nature of the product. The present day marketers are consumer
oriented where it is the duty of the manufacturers to know from where, when, how and what
price the products would be available. Successful marketing consists in offering the right
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product of the right price of the right place (and time) with right promotion. In course of time,
various activities came into vogue designed particularly to help easy sale of goods. These
activities commonly known as promotional Mix.
The marketing communication Mix also called as the “Promotion Mix” consists of four major
tools.
1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
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According to Wheeler, “Advertising is any form of paid non-personal presentation of ideas,
goods or services for the purpose of inducting people to buy.”
The above definitions clearly reveal the nature of advertisement. This is a powerful element
of the promotion mix. Essentially advertising means spreading of information about the
characteristics of the product to the prospective customers with a view to sell the product or
increase the sale volume.
Introduce a Product
The most common reason Advertising is used is to introduce a new product in
the market. This can be done by existing brands as well as new brands. Have a look at
the latest IPhone in the market or a Samsung smartphone and you will find a lot of
advertisement for these new products. The objective of advertising here is to tell
customers – “Here is the new product we have launched”
Introduce a brand
There are many startups in the market today and many of them are services. Services
are generally marketed as a brand rather than marketing their individual service product.
Thus, Uber will market its own brand and introduce that Uber has started servicing
customers in a new market. Same goes for Oracle or Accenture – Companies which
market their brand and their presence in the market rather than marketing an individual
product.
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Awareness creation
According to the AIDA model, the most important job of advertising is to get attention
which is nothing but Awareness creation. Advertising needs to capture the attention of
people and make them aware of the products or their features in the market.
Acquire Custumer
One of the major objectives of advertising and the first objective of many advertising
campaigns is to acquire more customers. This is also known as making the customers
switch brands. This can happen by passing on a strong message so that the potential
customer leaves the brand which he is tied up with and comes to your brand.
Differentiation
If a competitor is just advertising the features, whereas your firm advertises the
promises and commitments that it will keep, naturally more customers will “trust”
your brand over others. This is the reason that advertising is used commonly to create
value and to differentiate one brand from another.
Brand Building
When a brand regularly advertises and delivers quality products and fulfills the
promises it makes, automatically the value of the brand is built. However, there are
many other aspects of brand building. One of the first ones is to advertise via ATL and
BTL campaigns etc.
Brands have different objectives of Advertising. Brands like P&G and HUL regularly
invest funds in building a good brand value for the parent brand. By doing so, even if
one brand is affected, the parent brand is untouchable.
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Positioning
One of the key factors in the actual purchase of a product is the products recall and
the brand recall at the time of purchase. Amongst the objectives of advertising, one
objective is to correctly position the brand in the minds of the customer.
Increase Sales
Naturally, with so many steps being taken to advertise the product, it is no doubt that
one of the objectives of advertising is to increase sales. Many a times this objective is
achieved via advertising. However, if the campaign is improper or the audience is not
targeted properly, then advertising can fail in its objective.
Increase Profits
With the value being communicated and the brand being differentiated as well as sales
being increased, there is no doubt that advertising can contribute a lot to increasing
profits. Advertising should never be looked at as an expense or a liability. In fact, it is
an investment for a firm just like a brand is an investment.
Create desire
Again, referring to the AIDA model, one of the key factors in advertising is to create a
desire for the product so that the customer wants the product. Brands which are known
to do this are BMW, Audi, Harley Davidson, Adidas and others. These brands are
master of advertising where they create so much desire for the product that the customer
absolutely wants a product even if he doesn’t need it.
Call to Action
One of the most common objectives of digital advertising and digital marketing is to get
a call to action. Brands invest in banner ads, link ads as well as social ads to get their
potential customers to take an action. This action can be filling up an Email form,
clicking on a link, watching a video, giving a survey or what not.
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1.1.2) IMPORTANCE OF ADVERTISING
To the CUSTUMERS
Convenience
Targeted informative advertisements make the customer’s decision making process
easier as they get to know what suits their requirements and budget.
Awareness
Advertising educates the customers about different products available in the market and
their features. This knowledge helps customers compare different products and choose
the best product for them.
Better Quality
Only brands advertise themselves and their products. There are no advertisements for
unbranded products. This ensures better quality to the customers as no brand wants to
waste money on false advertising.
To the BUSINESS
Awareness
Advertising increases the brand and product awareness among the people belonging to
the target market.
Brand Image
Clever advertising helps the business to form the desired brand image and brand
personality in the minds of the customers.
Product Differentiation
Advertising helps the business to differentiate its product from those of competitors’
and communicate its features and advantages to the target audience.
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Increases Goodwill
Advertising reiterates brand vision and increases the goodwill of the brand among its
customers.
Egyptians did the earliest known advertisement. They were the first to use ‘papyrus’ for
advertising their goods and services. Then came the Romans. They used mosaics and
artwork to promote their products. Then next, Athenians. They took advertising to a whole
new level, by hiring criers to stroll the street. Athenians can be attributed as the inventors of
advertising as what we know today.
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THE FUTURE?
Custumer Centric Marketing-Personalizing marketing is nothing new, but because
of new data, customizing your message has become even more targeted. Thanks to AI
and machine learning, marketers have moved from relying solely on demographics to
having habits, desires, activities, and purchasing preferences available at the touch of a
button.
Voice Search Ecosystem-As everything is getting smart and connected from Cars to
Home, Mobile to the computer, computer to the audio player, smart Tv to Smart
Speakers, and smart speaker to smart home. An entire ecosystem is created where
every device can talk to each other. This will produce a considerable amount of data
which will ultimately help in the advertisement.
Thanks to Machine learning and AI. The introduction of Google Home, Alexa, Voice
Assistant, etc. will help in segmenting and targeting people with the appropriate ad.
A good analytical tool is a cherry on top, which helps in tracking and analysis if the
impact of ads on users and beyond. A considerable amount of data is generated from
the website, and machine learning (with the use of data analytics) will give us the key
to target users, with the correct ad. This will benefit both the user and the advertiser.
The future of marketing is looking more and more promising every day. It is becoming
more consumer-friendly, responsive, and authentic as the day goes by.
Advertising is crucial for the success of any small, medium, or big enterprise. The main goal
to advertise is to reach out maximum audience and boost sales for the time. Businesses
use different advertising channels including social media, traditional methods (TV,
newspapers, and Radio, etc.), and SEM. Advertising has its own pros and cons for both
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customers and the company.For the development of advertising and to get best results one
need to follow the advertising process step by step.
1. Step 1 - Briefing: the advertiser needs to brief about the product or the service which has
to be advertised and doing the SWOT analysis of the company and the product.
2. Step 2 - Knowing the Objective: one should first know the objective or the purpose of
advertising. i.e. what message is to be delivered to the audience?
3. Step 3 - Research: this step involves finding out the market behavior, knowing the
competitors, what type of advertising they are using, what is the response of the consumers,
availability of the resources needed in the process, etc.
4. Step 4 - Target Audience: the next step is to identify the target consumers most likely to
buy the product. The target should be appropriately identified without any confusion. For
e.g. if the product is a health drink for growing kids, then the target customers will be the
parents who are going to buy it and not the kids who are going to drink it.
5. Step 5 - Media Selection: now that the target audience is identified, one should select an
appropriate media for advertising so that the customers who are to be informed about the
product and are willing to buy are successfully reached.
6. Step 6 - Setting the Budget: then the advertising budget has to be planned so that there is
no short of funds or excess of funds during the process of advertising and also there are no
losses to the company.
7. Step 7 - Designing and Creating the Ad: first the design that is the outline of ad on papers
is made by the copywriters of the agency, then the actual creation of ad is done with help
of the art directors and the creative personnel of the agency.
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8. Step 8 - Perfection: then the created ad is re-examined and the ad is redefined to make it
perfect to enter the market.
9. Step 9 - Place and Time of Ad: the next step is to decide where and when the ad will be
shown.The place will be decided according to the target customers where the ad is most
visible clearly to them. The finalization of time on which the ad will be telecasted or shown
on the selected media will be done by the traffic department of the agency.
10.Step 10 - Execution: finally the advertise is released with perfect creation, perfect
placement and perfect timing in the market.
11. Step 11 - Performance: the last step is to judge the performance of the ad in terms of the
response from the customers, whether they are satisfied with the ad and the product, did
the ad reached all the targeted people, was the advertise capable enough to compete with
the other players, etc. Every point is studied properly and changes are made, if any.
Traditional advertising is usually well-established and easy to place. It’s also very
measurable in terms of viewership and who sees your ad. However, it also can become
expensive – especially in larger markets – and it is often more regulated. A traditional ad
must often meet the norms and standards of the media in which it is placed.
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Traditional Methods of Advertising:-
Print
Print advertising is one of the most traditional methods of advertising, because for decades,
people relied on newspapers and magazines for much of their information. Traditional print
ads included two main options: display and classifieds. Display ads are graphic images that
can include text, photos, illustrations and your company logo. The use of graphics catches
people’s attention and helps tell your story better. Classified advertising usually consists of
words only, set among other text-only ads, although some classified listings may allow
small photos. You cannot control the typeface used, and all classifieds on a page generally
look the same. These ads are usually the most inexpensive way to advertise in print. When
purchasing display ads, ask about and try to negotiate where they will appear to maximize
the benefit you get from them.
Broadcast
With the advent of radio and television, advertisers found another venue to sell their wares.
Because of the cost of creating these ads, they were more expensive than print and often
too expensive for small businesses. They also lasted only 30 seconds, with advertisers
hoping the increased impression the ad made would make up for its fleeting nature. Today,
broadcast outlets offer advertising at more affordable rates and often provide creative
services as part of your contract purchase or for a small fee. You can negotiate that your
ads will run at a specific time, usually for an extra fee, or choose a less-expensive run-of-
schedule option that lets the station choose when your spots will run.
Outdoor
Another longtime advertising option is outdoor advertising, which places messages where
people will see them on a potentially daily basis. These include ads placed on billboards,
buses, taxis, benches and buildings. You often get more viewers of your message than you
do with print or broadcast ads but have less control over who sees them .
Promotions
Some people differentiate promotions from advertising, while others consider some forms
of promotions as advertising. Traditional advertising promotions include free logoed items
such as pens, caps and coffee cups. Advertising promotions can also include direct mail,
coupons, fliers and tabletop displays.
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1.3.1)Modern Methods
There are numerous advertising techniques that you can use for promoting your products and
services. Businesses, however, are always looking for newer, more appealing advertising
methods. The Internet in particular has led to the emergence of many new-age modern
advertising techniques.
Advertising in the modern era is completely different from traditional advertising. Here are
some of the latest and hottest trends in modern advertising that are gaining popularity.
A banner ad, or a web banner, is an advertisement displayed on a web page. The advertisement
consists of an image or of a multimedia object created using Flash. So banner ads can be static or
animated, depending on what technology has been used to make them. Some banner
design inspirations are Adobe, Amazon, and DELL.
Mobile Advertising
Mobile advertising is a form of advertising done via mobile phones or other mobile devices. It is
a subset of mobile marketing. Advertisers procure data of mobile numbers of their existing
customer base as well as a list of phone numbers of potential customers. A message rarely goes
unnoticed and thus, qualifies as an effective marketing or advertising tool! Few examples of
companies that made the most of their mobile marketing campaigns are Ford Motor Company,
RedBox and Starbucks Mobile Payments.
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Bandwagon Advertising
This is a propaganda advertising technique, which aims at convincing the user that everyone else
is using the products or everyone in the customer base, is in favor of the brand and so he must do
so too. The brands that used this method are Oral-B and Maybelline New York.
Promotional Advertising
Promotional advertising involves the use of promotional media events or promotional give away
items, which help to acquire public attention and are simply an effective way of advertising.
American Express Promotional Advertising Campaign and iClick Interactive Promotional
Advertising Campaign are the best examples that fit here.
Surrogate Advertising
Laws have banned the advertising of products like alcohol or cigarettes. Owing to this, many
umbrella brands have come up with a technique that not only promotes the umbrella brand name
but also reminds the consumer of the products that have been banned from advertising. Some
instances of surrogate advertisements are Kingfisher Soda, Royal Challenge Golf Accessories and
Mineral Water.
Pixel Advertising
Pixel advertising is a very new type of advertising in which the cost of an advertisement is
calculated based on the number of pixels it occupies on the internet. LEGO and Sephora are the
best stories of Pixel advertising.
Contextual Advertising
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Keyword Advertising
Blog Advertising
Corporate blogs are an extremely excellent way for companies to reach out to their customer base
on the Internet. Advertising blogs usually make use of Search Engine Marketing techniques,
which ensure better results on the web. If you get decent organic traffic on your blog, you can also
try text-link ads where you link a piece of text on your site to another page on a different website.
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CHAPTER-2: COMPANY PROFILE
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COMPANY PROFILE
Tata Motors is India’s largest automobile company, with consolidated revenues of USD 20
billion in 2009-10. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle
segments. The company is the world's fourth largest truck manufacturer, the world's second
largest bus manufacturer, and employs 24,000 workers. Since first rolled out in 1954, Tata
Motors has produced and sold over 4 million vehicles in India.
Established in 1945, when the company began manufacturing locomotives, the company
manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG,
which ended in 1969. Tata Motors is a dual-listed company traded on both the Bombay
Stock Exchange, as well as on the New York Stock Exchange. Tata Motors in 2005 was
ranked among the top 10 corporations in India with an annual revenue exceeding INR 320
billion. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most
valuable brand' in a annual survey conducted by Brand Finance and The Economic Times.
Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India, as well as in Argentina, South
Africa and Thailand.
As an enterprise under India’s largest multi-holding company, Tata Motors has grown
significantly in the past 65 years since its establishment in 1945. The company caters to three
main market segments globally: the passenger cars, utility vehicles and commercial vehicles.
A significant breakthrough for the company was the development and commercialization of
the truly Indian cars - Tata Indica and Tata Indigo. The company produced the first mini-
truck, first light and first heavy vehicle and many more firsts in India, being an innovator in
their industry. It has followed a strategy of acquisitions and joint ventures in its mid-stage
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and launched new products at a rapid pace in different market segments. Today, Tata Motors
enjoys the position of being India’s leading automobile manufacturer with increasing
presence in Europe, South East Asia, Africa, Australia and the Middle East with a total
income of US $4 billion in 2004- 05.
The company focuses on providing customers the best value for their money and meets
European standards and environmental regulations through their advanced technologies.
Tata Motors Limited is India's largest automobile company, with consolidated revenues of
Rs. 92,519 crores (USD 20 billion) in 2009-10. 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. The Company is the world's fourth largest
truck manufacturer, and the world's third largest bus manufacturer.
The Company's 24,000 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."
The Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, 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. The Company is establishing a new plant at Sanand
(Gujarat). The Company's dealership, sales, services and spare parts network comprises over
3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.
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. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products to several international
markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from
Tata Daewoo. In 2005, Tata Motors 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. In 2006, Tata Motors formed a joint
venture with the Brazil-based Marcopolo, a global leader in body-building for buses and
coaches to manufacture fullybuilt buses and coaches for India and select international
markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the Company's pickup
vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.
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
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several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South
America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, Senegal and South Africa.
The foundation of the Company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the
Company's Engineering Research Centre, established in 1966, has enabled pioneering
technologies and products. The Company today has R&D centers in Pune, Jamshedpur,
Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors,
which developed the first indigenously developed Light Commercial Vehicle, India's first
Sports Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger
car. Within two years of launch, Tata Indica became India's largest selling car in its segment.
In 2005, Tata Motors created a new segment by launching the Tata Ace, India's first
indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT
and transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set
a new benchmark among small cars. Its safety performance exceeds regulatory requirements
in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in
India today. The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint. In May
2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in
keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they
will introduce new benchmarks in India and match the best in the world in performance at a
lower life-cycle cost.
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. Through its
subsidiaries, the Company is engaged in engineering and automotive solutions, construction
equipment manufacturing, automotive vehicle components manufacturing and supply chain
activities, machine tools and factory automation solutions, high-precision tooling and plastic
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and electronic components for automotive and computer applications, an automotive
retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on
four thrust areas – employability, education, health and environment. The activities touch the
lives of more than a million citizens. The Company's support on education and employability
is focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative healthcare. The goal of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies 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.
Tata Motors is one of the 32 publicly listed enterprises under the Tata Group, India’s largest
business conglomerate. Tata Motors collaborated with Germany’s Daimler Benz in 1954 for
15 years to manufacture commercial vehicles. Since then, Tata Motors has grown enormously
and produces several vehicles through their three main divisions– Passenger Cars, Utility
Vehicles and Commercial Vehicles. In 1959, they set up their first and largest R&D centre in
Jamshedpur. By 1961, exports had begun and the first truck was shipped to Sri Lanka. Another
R&D center was started at Pune in 1966 to support automobile research which produced the
first commercial vehicle in 1977. Tata Motors began the production and sale of heavy
commercial vehicles by 1983 and light commercial vehicles three years later. With increasing
sales and popularity, they sold their one millionth vehicles by 1991. Their interest in tapping
the diesel engine market was evident through their joint venture with Cummins Engine Co.
Inc. in 1993 for the production of high horsepower and emission friendly diesel engines. After
the joint venture in 1993, a few others were pursued the following year. An agreement with
Daimler Benz in 1994, allowed Tata Motors to produce high end Mercedes Benz passenger
cars for the Indian market. Smooth operations allowed the first Mercedes Benz E220car to be
put on the market within a year. Another joint venture in the same year was formalized to
complement the Cummins diesel engines by adding turbochargers on them. This was made
possible with Tata Holset Ltd. in the UK to manufacture turbochargers. By 1998, they had
launched their first sports utility vehicle, Tata Safari. This was an important year as their sales
had doubled to 2 million vehicles and marked the launch of India’s first fully indigenous
passenger car, Tata Indica. The Indica was a success and had over 115,000 bookings with full
paymentwithin a year of the launch. The demand for the Indica was rising overseas as well,
with a consignment of 160 vehicles shipped to Malta in 2000. The company’s ability to
continually improve and innovate was seen in the following,years when improved versions of
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their previous models were put into the market. The second generation Indica V2 and Tata
Safari EX were launched and the Indica V2 soon took the top rank in India’s #1 car within its
segment. In addition, to tackle environmental concerns, it launched the CNG (Compressed
Natural Gas) buses and CNG Indica’s by 2001 that made use of compressed fuel tanks and
significantly reduced toxic emissions. Sales had been increasing in all their commercial vehicle
segments as well as passenger cars. In 2004, Tata signed an investment agreement with
Daewoo Commercial Vehicle Co. Ltd. and later acquired the company. The new Tata Daewoo
Company launched a heavy duty truck ‘Novus’ in Korean markets. It was also in 2004, that
Tata Motors entered the US stock markets (NYSE: TTM).In the last few years, Tata produced
more vehicles with other companies through joint ventures or acquisitions and presented many
of its models atBthe Geneva Motor Show. Its latest model in trucks, also India’s first mini-
truck, the Tata Ace was launched in 2005.Over the years, Tata has evolved in product line,
global outreach, sales and become the leader in high performance and durable vehicles in many
markets.
Vision:- The vision statement of Tata Motors is "Best in the manner in which we operate,
best in the product we deliver, and best in our value system and ethics." To evolve into a
world class Indian car brand.
Mission:- To provide passenger vehicles that offer customers exceptional value, and
through this build a company that provide its shareholders with superior return, and is seen
by society and other stakeholders as a valuable contributor to their development´
Customer:- To strengthen the Tata brand and create lasting relationships with the
customers by working closely with business partners to provide superior value for money
over the life cycle
Employees:- To create a seamless organization that incubates and promotes innovation,
excellence and the Tata core values.
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Vendor & Channel partners:- To foster a long term relationship so as to introduce a
broad range of innovative products and services that would benefit our customer and other
stakeholders.
Dr.J.J.Irani
Mr.Nusli
N.Wadia
Dr. R. A. Mashelkar
Mr. S. M. Palia
Mr. V. K. Jairath
Mr. P. M. Telang
To focus effectively on the issues and ensure expedient resolution of diverse matters, the
Board has constituted a set of Committees with specific terms of reference/scope. The
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Committees operate as empowered agents of the Board as per their Charter/ terms of
reference. Targets set by them as agreed with the management are reviewed periodically and
mid-course corrections are also carried out. The Board of Directors and the Committees also
take decisions by the circular resolutions which are noted at the next meeting. The minutes of
the meetings of all Committees of the Board are placed before the Board for discussions/
noting.
Tata Motors has several joint venture, subsidiary and associate companies:
Jaguar Land Rover
Jaguar Land Rover is a business built around two iconic British car brands that designs,
engineers and manufactures in the UK. With investment in product creation topping £1
billion a year, Jaguar Land Rover is at the centre of the UK automotive industry’s drive to
deliver technical innovation in all areas of vehicle development. The Jaguar Land Rover
business directly employs more than 18,000 people and supports approximately 130,000 jobs
through direct employment, dealers, suppliers and broader economy). Jaguar Land Rover
exports annually generate almost £6 billion for the UK economy with 78 percent of Land
Rovers exported to over 160 countries and 70 percent of Jaguars exported to over 60
countries. Jaguar Cars Limited, founded in 1922, is one of the world’s premier manufacturers
of luxury saloons and sports cars. Since 1948 Land Rover has been manufacturing authentic
4x4s that define 'breadth of capability' in their segments. The Jaguar XF, XK and XJ models
are manufactured at the company's Castle Bromwich plant in Birmingham. Land Rover's
Defender, Discovery 4, Range Rover Sport and Range Rover models are all built at the
Solihull plant. The Land Rover Freelander 2 is built at the Halewood plant in Liverpool.
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Joint Venture , Subsidiary and Associate Companies :
25
COMPANY’S STRUCTURE
The wide array commercial vehicles from Tata motors are designed to take
care of almost every business needs, big and small. From rigid trucks to
tractor trailers, from light commercial vehicles to specialized defence
carriers, from luxury buses to compact city carriers.
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Light Vehicles:
o Rigid Trucks
o Tippers
Small Vehicles:
o Ace
o Winger
o 207 DI EX
o Telcoline
o Xenon
Buses:
o Public Transport
o Intercity Transportation
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Commercial Vehicles are:
o Tata Ace
o Tata Starbus
o Tata Globus
o Tata Marco polo Bus
o Tata Novus
o Tata 407 EX Military Vehicles
o Tata LSV
o Tata 407 Troop Carrier
o Tata Winger Passenger Mini Bus
Defence Vehicles:
o Tata 407 (4 x 4) Soft Top Troop Carrier
o Tata LPT 709 E Hard Top Troop Carrier
o Tata LPTA 1621 TC (6 x6)
o Tata LPTA 1615 TC (4 x2)
o Tata SD 1015 TC (4 x4)
o Tata 407 / (4 x2) Hard Top Troop Carrier
o Tata LPTA 1615 TC (4 x 4)
o Tata LPTA 713 TC (4 x4).
1948: Steam road roller introduced in collaboration with Marshall Sons (UK).
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1954: Collaboration with Daimler Benz AG, West Germany, for manufacture of medium
Tata Engineering and Locomotive Co. Ltd. Was established to manufacture locomotives and
other engineering products. Steam road roller introduced in collaboration with Marshall Sons
(UK).Colla commercial vehicles. The first Tata Engineering and Locomotive Co. Ltd. was
established to manufacture locomotives and other engineering products.
Steam road roller introduced in collaboration with Marshall Sons (UK).
Collaboration with Daimler Benz AG, West Germany, for manufacture of medium Tata
Engineering and Locomotive Co. Ltd. was established to manufacture locomotives and other
engineering products.
Steam road roller introduced in collaboration with Marshall Sons (UK). Colla vehicle
rolled out within 6 months of the contract.
1961: Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1986: Production of first light commercial vehicle, Tata 407, indigenously designed,
followed by Tata 608.
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1989: Introduction of the Tatamobile 206 - 3rd LCV model.
1991:Launch of the 1st indigenous passenger car Tata Sierra.Tac 20 crane produced.
One millionth vehicle rolled out.
1992: Launch of the Tata Estate.1993 Joint venture agreement signed with Cummins
Engine Co. Inc. for the manufacture of high horsepower and emission
friendly diesel engines.
1994: Launch of Tata Sumo - the multi utility vehicle. Launch of LPT 709 - a full forward
control, light commercial vehicle. Joint venture agreement signed with M/s Daimler - Benz /
Mercedes - Benz for manufacture of Mercedes Benz passenger cars in India.
Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing turbochargers
to be used on Cummins engines.
1998: Tata Safari - India's first sports utility vehicle launched.2 millionth vehicle rolled out.
Indica, India's first fully indigenous passenger car launched.
1999: 115,000 bookings for Indica registered against full payment within a week.
Commercial production of Indica commences in full swing
2000: First consignment of 160 Indicas shipped to Malta. Indica with Bharat Stage 2 (Euro
II) compliant diesel engine launched.
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Utility vehicles with Bharat Stage 2 (Euro II) compliant engine launched. Indica 2000 (Euro
II) with multi point fuel injection petrol engine launched.
Launch of CNG buses.
Launch of 1109 vehicle - Intermediate commercial vehicle.
2004: Tata Motors unveils new product range at Auto Expo '04.
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New Tata Indica V2 launched.
Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement.
Indigo Advent unveiled at Geneva Motor Show.
Tata Motors completes acquisition of Daewoo Commercial Vehicle Company.
Tata LPT 909 EX launched.
Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches
the heavy duty truck 'NOVUS', in Korea.
Sumo Victa launched.
Indigo Marina launched.
Tata Motors lists on the NYSE.
2005: Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in
Pune.
The Tata Xover unveiled at the 75th Geneva Motor Show.
Branded buses and coaches - Starbus and Globus - launched.
Tata Motors acquires 21% stake in Hipo Carrocera SA, Spanish bus manufacturing
Company.
Tata Ace, India's first mini truck launched.Tata Motors wins JRD QV award for business
excellence.
The power packed Safari Dicor is launched.
Introduction of Indigo SX series - luxury variant of Tata Indigo.
Tata Motors launches Indica V2 Turbo Diesel.
One millionth passenger car produced and sold.
Inauguration of new factory at Jamshedpur for Novus.
Tata TL 4X4, India's first Sports Utility Truck (SUT) is launched
Launch of Tata Novus.
Launch of Novus range of medium trucks in Korea, by Tata
Daewoo Commercial Vehicle Co. (TDCV).
2006: Tata Motors vehicle sales in India cross four million mark.
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Tata Motors unveils new long wheel base premium Indigo & X - over concept at Auto Expo
2006.
Indica V2 Xeta launched.
Passenger Vehicle sales in India cross one-million mark.
Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully built buses
and coaches for India and markets abroad.
Tata Motors first plant for small car to come up in West Bengal.
Tata Motors extends CNG options on its hatchback and estate range.
TDCV develops South Korea's first LNG-Powered TractorTrailer.Tata Motors and Fiat
Group announce three additional cooperation agreements.
Tata Motors introduces a new Indigo range.
2007: Construction of Small Car plant at Singur, West Bengal, begins on January 21.
New 2007 Indica V2 range is launched.
Tata Motors launches the longwheel base Indigo XL, India's first stretch limousine.
Common rail diesel (DICOR) engine extended to Indigo sedan and estate range.
Tata Motors and Thonburi Automotive Assembly Plant Co. (Thonburi), announce formation
of a joint venture company in Thailand to manufacture, assemble and market pickup trucks.
Roll out of 100,000th Ace.
Tata-Fiat plant at Ranjangaon inaugurated.
Launch of a new upgraded range of its entry level utility vehicle offering, the Tata Spacio.
CRM-DMS initiative crosses the 1000th location milestoneLaunch of Magic, a comfortable,
safe, four-wheeler public transportation mode, developed on the Ace platform.
Launch of Winger, India’s only maxi-van.
Fiat Group and Tata Motors announce establishment of Joint Venture in India.
Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level utility
vehicle, the Sumo Spacio.
Tata Motors launches Indica V2 Turbo with dual air bags and ABS.
Launch of new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection
Common Rail (DICOR) engine.
Rollout of the one millionth passenger car off the Indica platform.
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2008: Ace plant at Pantnagar (Uttarakhand) begins production.
Indica Vista – the new generation Indica, is launched.
Tata Motors' new plant for Nano to come up in Gujarat.
Latest common rail diesel offering- the Indica V2 DICOR, launched.
Indigo CS (Compact Sedan), world’s first sub four-metre sedan, launched.
Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV with the
comforts of a family car.
Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
Xenon, 1-tonne pick-up truck, launched in Thailand.
Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and
Land Rover.
Tata Motors completes acquisition of Jaguar Land Rover.
Tata Motors introduces new Super Milo range of buses .
Tata Motors is Official Vehicle Provider to Youth Baton Relay for The III Commonwealth
Youth Games Pune 2008.
Indica Vista – the second generation Indica, is launched.
Tata Motors launches passenger cars and the new pick-up in D.R. Congo.
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FREELANDER 2 launched in India.
Tata Motors introduces the all new Tata 407 Pickup, Tata Super Ace and Tata Ace EX.
First Jaguar Land Rover showroom opens in India.
Mr. Ravi Kant to become Non-executive Vice-Chairman of Tata Motors on retirement, Mr.
P.M. Telang to become Managing Director – India Operations.
Tata Nano draws over 2.03 lakh bookings.
2010: Tata Ace becomes India's first 1-lakh brand in goods commercial vehicles.
Appointment of Mr. Carl-Peter Forster as Managing Director of Tata Motors.
Jaguar Land Rover announces opening of its Dealership in New Delhi.
Tata Motors to construct heavy truck plant in Myanmar under Government of India's Line of
Credit.
Tata Motors declared as the Commercial Vehicle Maker of the Year.
Tata Motors Passenger Car Division launches ‘Tata Motors Service Edge' for leading edge
customer service.
Tata Motors displays Tata Nano EV at the 80th Geneva Motor Show.
Chief Minister of Punjab inaugurates Tata Motors supported State Institute of Automotive
and Driving Skills.
Jaguar Land Rover announces Dr. Ralf Speth as Chief Executive Officer.
Tata Motors appoints Mr. Carl-Peter Forster as Group CEO
Tata Motors Group displays the widest range of products and environment-friendly
technologies at Auto Expo 2010.
Tata Motors launches Magic Iris.
On 26th April 2010, Tata Motors sold its 4 millionth Commercial Vehicle
2011: Tata Motors unveils Assembly Plant in South Africa. Jaguar Land Rover
inaugurates new vehicle assembly plant in Pune India. Jaguar celebrates 50 years of iconic
E–Type. Jaguar c–x75 scoops Louis Vuitton award in Paris. Tata Pixel, new city car
concept for Europe, displayed at the 81st Geneva Motor Show. Tata Motors displays Tata
Nano EV at the 80th Geneva Motor Show.
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Launch of Tata Nano 2012
Tata Sumo Gold introduced
Range Rover Evoque launched in India
New Tata Indica Vista launched
Tata Magic IRIS and Tata Ace Zip launched
Tata Indica eV2 introduced with 25 kmpl mileage
Tata Pixel, a city car concept for Europe, displayed at the Geneva Motor Show
Refreshed Tata Indigo Manza introduced
Tata Prima ConsTruck range launched
Tata Motors unveiled assembly plant in South Africa
Tata Nano began international journey with Sri Lanka
Tata Motors completes 50 years of its International Business
Jaguar Land Rover inaugurated its vehicle assembly plant in Pune
Tata Nano launched in Nepal
HVTL amalgamates into HVAL renamed as TML Drivelines Ltd.
Tata Motors (Lucknow) produced & dispatched the first Hybrid Chassis to Spain
Tata Motors (Dharwad) rolled out the first Tata Ace Zip
Tata 407 celebrated its silver jubilee year
Jaguar celebrates 50 years of iconic E–Type
2013 :Tata Nano becomes the first Auto Brand in India to cross 3 million fans on
Facebook
The Tata Indigo eCS enters Limca Book of Records
Tata Motors' Jamshedpur plant rolls out its two millionth truck
Tata Nano offered industry first phenomenon – Swipe your credit card and drive home a
Nano
Tata Motors launches the world–class range of Tata PRIMA trucks in Sri Lanka
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2.2.2) Achievements & Awards
Achievements
Tata Motors among India’s most Trusted Brand in cars
Tata Motors wins award at the Bangkok International Motor Expo
Tata Motors – Investor Relations ranked first in India
Nirmal Gram Puraskar awarded to Potka panchayat.
Tata Motors bags the NDTV Profit Business Leadership Award 2008
Tata Motors awarded the Top Exporter Trophy by EEPC
CVBU Pune wins Rajiv Gandhi National Quality Award for 2007.
PCBU bags Handa Golden Key Award.
Tata Motors receives Uptime Champion Award 2007
Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL
'NDTV Profit' Business Leadership Award
Tata Motors bags National Award for Excellence in Cost Management.
Tata Motors' TRAKIT bags silver award for 'Excellence in Design'
Tata Motors Pune – CVBU has bagged the 'Golden Peacock National Quality Award
Tata Motors was awarded four prestigious honours, at the 'CNBC TV18– Autocar.
Tata Motors chosen as India's Most Trusted Brand in Cars.
Business today selects Mr. P.P. Kadle as India's Best CFO in 2005.
Pune Foundry Division bags prestigious Green Foundry Award.
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
ACE bags 'Best Commercial Vehicle Design' at the BBC–Top Gear Awards.
Jamshedpur bags National Energy Conservation Award for the fourth consecutive
year. Tata Motors bags the prestigious' CII–EXIM Bank award' for business excellence.
Tata Motors receives JRD QV awards for Business Excellence.
'Car Maker of the Year' Award for Tata Motors.
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
TNS Voice of the Customer Award for Indica Diesel.
'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director
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Tata Motors wins the prestigious 'Corporate Platinum' Award Tata Motors wins 'Golden
Peacock Award' for Corporate Social Responsibility.
Tata Motors CVBU Pune wins National Energy Award.
Tata Motors – Jamshedpur wins 'Energy Efficient Unit Award'.
Tata Motors wins the first CSIR Diamond Jubilee Technology Award.
Tata Motors Training Division Wins 'Golden Peacock National Training Award 2004'.
Tata Motors case study wins first prize in iiie productivity contest.
Tata Motors wins award for fair business practices.
Tata Indica and Tata Safari EXi win awards.
Tata Motors–Car plant gets two ISO certifications.
Tata Motors bags awards at 14th National Convention of INSAAN
Indica and Safari win accolades
Tata Motors pune awarded second place in national level competition in energy co.
Tata Motors Receives 'India's Best Employer' Award from the Employe.
Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award institute
CVBU receives commendation certificate for 'strong commitment to TQM'.
Tata Motors team wins The Runners up Position at The Asian Business Simulation
The Prestigious Balanced Scorecard Collaborative Hall Of Fame Award
Tata Motors receives all India trophies for Top Exporters
Tata Indigo ad campaign wins Effie award
Golden Peacock Environment Management Award – 2003
Industry and Technology Award, 2002
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Awards
Advertising Awards
Tata Indigo – Most Exciting New Car of the Year – ICICI Bank & Overdrive Awa
Tata Engineering – A Socially Responsible Corporate, says TERI
'Prof. Vasant Rao Rolling Trophy' for Value Engineering – 2002
Tata Engineering was conferred Bharat Gaurav Puraskar
Best Value for Money Car of the Year – Tata Indigo CNBC Auto Car Auto Awards – 2
'Voice of the Customer Award' for 'Best Diesel Small Car' – Tata Indica by NFO A
India CFO Award 2002
Tata Engineering bags INSAAN awards
National Best Training Establishment Award
Envirointernational Awards
Tata Motors does not follow a single marketing approach or formula but it believes that all
members of the community should be served. Brand targets crowd from the rural part to the
metros with its offerings varying from NANO to Jaguar Land Rover segment.
It targets anyone above 4 Lakh p.a. salary, millennial employed as professionals, managers
and all those looking to switch from 2-wheeler to 4-wheeler. The age bracket for brand’s
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offering varies from 21-65 years with all Middle class. Upper middle class, High class and
Affluent class in its target category.
Tata Motors offers products such as Tata ACE a mini truck mainly used for agriculture
transport purpose, Tata NANO for the middle class, Tata Indica and Indigo for commercial
purposes and Jaguar in the high-class segment thus creating the image that there’s something
for everyone in its huge line of offerings.
Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy
their needs and wants.
MARKETING MIX
Marketing is the process by which a product or service originates and is then priced,promoted, and
distributed to consumers. The principal marketing functions involvemarket research and product
development, design, and testing. It is the business activityof presenting products or services in such a
way as to make them desirable.One has to consider promotion that is balanced with a suitable product
available at areasonable price, provided at all places to maximize the sale of one’s product.
a. Brand : Advertising is often used to make consumers aware of a product’s special low price
or its benefits. But an even more important function of advertising is to create an image that
consumers associate with a product, known as the brand image. The brand image goes far
beyond the functional characteristics of the product. The products of Tata Motors have many
special characteristics to them, but when consumers think of it, they not only think of its
features, but they may also associate it with quality, performance, class. All of these meanings
have been added to the product by advertising. Consumers frequently buy the product not only
for its functional characteristics but also because they want to be identified with the image
associated with the brand. Tata Motors have been successful in creating and maintaining a
professional brand image.
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b. 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 has ‘Reverse Guide System’ which includes
a weather-proof camera to help the driver while reversing the vehicle.
c. 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. Tatas 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.
d. 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.
a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. As told by Mr.
Desai, 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
i. Market Condition
ii. Costs incurred
iii. Profit percentage desired by the Co.
iv. Dealer Profit
b. 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.
c. 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.
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3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)
a. 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.
d. Public Relations : Public Relations is a management function that creates, develops, and
carries out policies and programs to influence public opinion or public reaction about an idea,
a product, or an organization. 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
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b. 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.
The company began in 1945 and has produced more than 4 million vehicles. Tata Motors
Limited is the largest car producer in India. It manufactures commercial and passenger
vehicles, and employs in excess of 23,000 people. This SWOT analysis is about Tata
Motors.
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Strengths
The internationalisation strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into the new
market. The benefit is that Tata has been able to exchange expertise. For example after the
Daewoo acquisition the Indian company leaned work discipline and how to get the final
product 'right first time.'
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.
The company has had a successful alliance with Italian mass producer Fiat since 2006.
This has enhanced the product portfolio for Tata and Fiat in terms of production and
knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and
the companies have an agreement to build a pick-up targeted at Central and South America.
Weaknesses
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.
Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not
got a foothold in the luxury car segment in its domestic, Indian market. Is the brand
associated with commercial vehicles and low-cost passenger cars to the extent that it has
isolated itself from lucrative segments in a more aspiring India?
One weakness which is often not recognised is that in English the word 'tat' means rubbish.
Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they
would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths
Opportunities
In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land
Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's luxury
car brand have been added to its portfolio of brands, and will undoubtedly off the company
the chance to market vehicles in the luxury segments.
Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for
around USD $16 million.
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Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the
World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in
terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up
to 85 times more than a standard Nano!
The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally friendly
transport alternatives, is now the right time to move into this segment? The answer to this
question (and the one above) is that new and emerging industrial nations such as India, South
Korea and China will have a thirst for low-cost passenger and commercial vehicles. These
are the opportunities. However the company has put in place a very proactive Corporate
Social Responsibility (CSR) committee to address potential strategies that will make is
operations more sustainable.
The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly
engines. The bus has optional organic clutch with booster assist and better air intakes that
will reduce fuel consumption by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car business for 40, 50 or
more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean
production.
Sustainability and environmentalism could mean extra costs for this low-cost producer.
This could impact its underpinning competitive advantage. Obviously, as Tata globalises and
buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle segments, it has
left itself open to competition from overseas companies for the emerging Indian luxury
segments. For example ICICI bank and DaimlerChrysler have invested in a new Punebased
plant which will build 5000 new Mercedes-Benz per annum. Other players developing
luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire
Indian market has become a target for other global competitors including Maruti Udyog,
General Motors, Ford and others.
Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple
of fronts. The price of steel and aluminium is increasing putting pressure on the costs of
production. Many of Tata's products run on Diesel fuel which is becoming expensive
globally and within its traditional home market.
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COMPETITORS:
COMPETITORS Tata Motors relies heavily on its sales in India. Tata Motors now faces
stiff competition from fellow compatriots like Mahindra, Maruti as well as multinational
brands like Toyota and Chevrolet . It has faced controversy over developing the Nano’s.
Ashok Leyland, Tata's biggest competitor in the Indian heavy commercial vehicle market 20
Any person or entity which is a rival against another. A company in the same or similar
industry which offers a similar product or service -LEADERSHIP WITH TRUST.
STRUCTURE :-
Structure refers to the organization hierarchy, which provides information about who reports
to whom and how takes are divided and integrated .A Tata motor has an organization
structure that implies centralization of authority at the top departmentalization of jobs.
Hierarchy of command, narrow span and intense division of labour, this type of structure
provides a clear and well defined work setting to its employees.
Empowerment of people
Building excellence throughout the organization
Open and transport communication
Setting up of performance management system
Motivate the manager.
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SKILLS:-
One of the important attributes or capability possesses by the organization are skills. The
term skill include those characteristics or strength which most of the people use to describe
the company. Tata motor believe that human resource is the single largest factor responsible
for more effective utilization of all the other resource. The following are skills possessed by
Tata motors.
1.Communication skill and technical skills
2.Initiative
3.Interpersonal skills
4.Analytical skills
5.People sensitivity
STYLE:-
It refer to the way of working and the reporting relationship. Style means how manager
collectively spend their time and attention and how they used symbolic behavior. How the
management act its more important then what management say. Management is a employee
oriented. The working of management is democratic in style.
Tata motors the representative of workers takes active participation in all the managerial
activities where the interest of employee are involved. Functional heads takes the day today
decisions. Whenever the dispute arises it will be settled at the initial stage through mutual
discussion between the management and employees.
STRATEGY:-
It is a coherent set of actions aimed at gaining a suitable advantage over competition,
improving positions and allocating resources. The main strategy is to ensure maximum
utilization of available resources. For this purpose the company believes in promoting from
within the organization and there by encourage its people to strive for higher management
stability. The set up also allows them to take the advantage of common pool of technical and
marketing talent of the highest quality .
Tata adopts the following other strategy.
1.Adopts dynamic business strategy
2.Maintaining and improving quality
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3.Business intelligence
4.Create innovative solution for the future
5.Long standing client relationship
SYSTEM:-
System refer to the organization methods that are used for the flow of information from one
department to other department. Tata has an adequate system of internal control designed to
provide reasonable assurance on the achievement of the objective relating to efficiency and
effectiveness of operation, reliability of financial reporting. There is a system compliance to
follow rules and regulations and for safeguard of assets.
STAFF:-
The company is accommodating various employees, they comprise of staff, workers and
trainees. The people in organization are very dedicated and work towards the improvements
of the organization.
SHARED VALUES:-
o Intensity to win
o Make customer successful
o Team, innovate, excel Act with sensitivity
o Respect for the individual
o Thoughtful and responsible Unyielding integrity
o Delivering on commitments
o Honesty and fairness in action
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CHAPTER 3: RATIONALE OF THE STUDY
49
PROBLEM DEFINITION:-
In order to carry out the research programmed, the researcher should know the basic problem.
A competent researcher will not accept a research, until he understands the problem definition
is the core of research process. As such it denotes the particular most important step to be
performed. According to researcher’s viewpoint problem identification represents conversion
of the management problem in to research problem.
In the case, the topic is to know the “customer satisfaction towards TATAMOTOR because of
good marketing, the basic problem is to know the satisfaction of the consumer is at present
towards the TATA MOTORS. What people think about it? The main problem is to know how
many people are interested in purchasing the TATA MOTORS vehicle.
1. To know how many persons are willing to buy the TATA MOTORS CAR?
2. To know the different criteria that the customer undertakes while purchasing the cars.
3. Through Marketing Analysis, we can know the current position of TATA MOTORS
in the market.
4. Also the study will provide detail about the automobile sectors and the position of the
company will be known.
The time period of the survey being only two months it was not possible to conduct a highly
in depth and details study. Different people have a different thought, process and different
attitudes.
As a result their manner of answering the questions of the study differs the answers received
some times good while sometimes they where negative.
A census survey is not possible due to Pandemic period so I have selected sample survey.
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3.3 Research Methodology
“Research is an organized inquiry designed and carried out to provide information for
solving problems.” -Fred Kerlinger.
The nature of the project work has been exploratory as no hypothesis, is taken to be tested.
Though the conclusions drawn could be taken as the hypothesis and further tested by the
research work undertaken in the relevant field. The reason for choosing the exploratory
research design is the fact the project report has been primarily based upon the secondary
sources of data and whose authenticity could be assured of.
The reluctance of the company's personnel in parting with much of information led the
project report to be based substantially on the secondary source of data. The sources of data
used in data collection are the following:
Primary sources
In order to gather information about the various products, I personally took help of the google
docs and collected data pertaining to the prices of the products offered. The market visits were
not possible in this pandemic period for knowing the comparative prices and quality of the
offered brands vis-à-vis the competitive brands. Detail regarding the quality of the products
were collected and I also inquired about the various sales promotion schemes followed by the
these companies. By interviewing these dealers valuable information was collected. I inquired
from them about their marketing advertising and distribution strategies.
Secondary sources
Information was collected from secondary sources such as public libraries, newspapers,
business magazines. Beside these the use of Internet was also made in collecting relevant
information. The data collected from the above mentioned sources has been adequately
structured and used at appropriate places in the report. This particular way of data collection
was used because of its low cost (except data collected through surfing the internet) and less
time consumption.
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The information gathered included:
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DATA ANALYSIS & INTERPRETATION
4.1) Occupation
a. Professional d. Student
b. Government employee e. business
c. Private employee f. other
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 12% are
professional employee, 17% are govt. employee, 19% are private employee, 46% are
students, 5% are businessmens & 1% are from other sectors who go for TATA products.
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4.2) Family Income
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 27% have an
income of below 1,00,000 , 47% have an income between 1 lac – 5 lac & 29% have an
income of above 5,00,000 who go for TATA products.
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4.3) Model Of Purchase
a. loan
b. Cash
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 54% of the
respondents prefer to buy TATA products by Loan & 46% by cash. The difference is not
soo high between them.
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4.4) Mention reason to purchase the vehicle from SAIRAM TATA (TATA
MOTORS AUTHORISED DEALER)?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, The reason behind
the purchasing form SAIRAM TATA Dealer are 25% for Quick deliveries, 39% After sales
service ,17% Customer care & 19% likes All.
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4.5) What Attribute Made You to Purchase?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, The reason behind
the purchasing TATA 4 Wheelers are 26% for Model and Design, 36% for performance and
Design, 18% for Mileage & 20% liked All.
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4.6) How Satisfied are you about the price of TATA CAR when compared
with its facilities?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 31% are Highly
Satisfied, 49% are satisfied, 14% are Neutral & 6% are Highly Dissatisfied while comparing
the price of TATA cars with its facilities.
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4.7) How satisfied are you with the quality of your TATA CAR?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 42% are Highly
Satisfied, 41% are satisfied, 13% are Neutral & 4% are Highly Dissatisfied while
considering the Quality of TATA cars.
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4.8) How satisfied are you with maintenance cost of your TATA CAR?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 35% are Highly
Satisfied, 41% are satisfied, 14% are Neutral & 10% are Highly Dissatisfied while
considering the Maintenance Cost of TATA cars.
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4.9) How satisfied are you with the services provided by SAIRAM
TATA(TATA MOTORS AUTHORISED DEALER)?
a. Highly Satisfied c. Neutral
b. Satisfied d. Highly Dissatisfied
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 32% are Highly
Satisfied, 44% are satisfied, 12% are Neutral & 12% are Highly Dissatisfied while
considering the Services provided by SAIRAM TATA Dealer.
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4.10) How satisfied are you with Advertising effeciency SAIRAM
TATA(TATA MOTORS AUTHORISED DEALER) ?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 25% are Highly
Satisfied, 48% are satisfied, 21% are Neutral & 6% are Highly Dissatisfied while
considering the Advertising efficiency of SAIRAM TATA Dealer.
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4.11) How satisfied are you with the workshop service?
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 30% are Highly
Satisfied, 50% are satisfied, 13% are Neutral & 7% are Highly Dissatisfied while
considering the Workshop service of TATA.
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4.12) Please specify the overall performance of your TATA CAR?
a. Excellent c. Good
b. Poor
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 37% rated TATA
cars performance Excellent ,50% rated Good & 13% rated poor. according to the result Most
peoples liked the overall performance .
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4.13) Do you prior appointment for your service and maintenance?
a. Yes c.No
b. Sometimes
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, while Booking For
Prior Appointment 39% said YES , 56% said SOMETIMES & 5% said NO.
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4.14) Are the opening and closing time of our workshop convenient?
a. Yes
b. No
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 83% said YES &
17% said NO when asked about the convenient of Opening and Closing time of the
workshop. According to the result ,Majority of the persons are satisfied.
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4.15) Do you think TATA MOTORS has to increase its services centre both
in Rural and Urban areas ?
a. Yes
b. No
Interpretation:-
From the survey conducted out of 100 respondents researcher found that, 67% said YES &
33% said NO when asked about the TATA motors should Increase its services in both Rural
and Urban Areas, Majority of the persons are satisfied.
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CHAPTER 5: CONCLUSION
5.3 Conclusion
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CONCLUSION
Maximum number of respondent have chose Tata cars, as it is well suited for traveling both
The maximum no…… of people are very much satisfied with the overall performance of
Tata cars.
Most of the customer has the opinion that looks of Tata cars leads to their satisfaction.
Some customers are extremely satisfied with safety and comfort & some are neutral in their
opinion.
Most of the customers are using the vehicle for their own purpose.
Maximum no... Of customers are of the wish that not to recommend Tata cars to others.
Customers are much satisfied with the information and demo given by sales representative.
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Most of customers are of opinion that Tata should increases its service centers in rural and
urban areas.
The study is aimed at analyzing marketing and customer satisfaction with sample 100
members, which has helped in getting an overall view of customer satisfaction toward Tata
cars considering different criteria.
Recommendation Tata company has to implement good customer relationship management
strategy that enhances customer satisfaction level.
The company can undertake R&D to improve the existing feature which field helps increase
in the customer satisfaction.
The company should promote about the entire feature offered by it.
As majority of the customer give opinion that they are satisfied is the factors, services and
design of the product of the company should taken not only maintain the existing standard
but also enhance them.
To provide mobile services where one should be able to reach the spot in case of any break
down.
TATA Motors should increase the dealerships / channel partners for the rural marketing.
In case of non viability should force the old dealerships to open a branch & increase the
market share in that market.
Large range of products is increasing the gap b/w supply & demand. TATAMotors should
standardize the products. Product should be available at the timeof demand, sales &
marketing should be pro active & should plan before thedemand by estimations.
After sales service not satisfactory: Almost every customer complained of the
unsatisfactory after sales service being provided by the service stations of the company.
Either these people do not deliver the vehicle on time or they hesitate to provide on-route
service. This type of behaviour causes a feeling of being ignored inside the customers mind.
On the other hand, Customers are very satisfied with the after sales service being offered
by Ashok Leyland. Leyland is very good in providing On-Route service which is very
important for customer satisfaction. TATA Motors should make 24X7 service point one in
each district.
Territory Infringement: division of the territories of the dealership is not properly done and
also the company does not take any action against the practice of territory infringement.
Hence it becomes difficult for some dealers to manage the customers in their territory and
also it de-motivates them. This affects the sales of the product in a major way. The Territory
Infringement should imposed on dealership strongly.
Lack of spare parts: certain bus fleet operators complained of paucity of spare parts with
the sales office. The spare parts how so ever small they may be were not available at certain
times which led to the loss of revenue being generated by the bus on daily basis.
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Non- availability of product: Bus fleet operators are not getting delivery of the product
asked by them because of the non-availability of the products with the dealer. In that case
after waiting for some time customers moved to competitor’s product. This comes as a
cause of major concern because the actual sales of that particular product suffered leading
to loss of revenue for the organization.
Product Improvements: Till now only few models are coming with radial tyres asstandard
fitments. Need to work on automatic transmissions, Common railEngines & many more
technology advancements
5.3) CONCLUSION
Today, businesses around the world, both large and small, cannot ignore the impact that the
global economy is having on their performance. Globalisation, the internet, and information
transparency have led to an increasingly mobile workforce, ever more fickle customers, and
rapidly changing technologies and business models. One result of this seemingly inexorable
trend is that companies are less able to predict - let alone control - the short-term shape of
their own markets.
As a result, more and more organisations are choosing to adopt a marketingled philosophy to
enable them to win market share and capture and retain the hearts and minds of current and
prospective customers. Marketing is becoming more important as organisations around the
world strive to develop products and services that appeal to their customers and aim to
differentiate their offering in the increasingly-crowded global marketplace.
These complex issues heighten the need for effective marketing whilst expanding its scope
beyond the ‘marketing function’. Put simply, marketing is no longer the sole prerogative of a
single ‘function’, even if the leadership on marketing comes from that function, together
with the framework within which marketing strategies are conceived, developed, planned,
executed, reviewed and improved.
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We have discussed marketing strategies of TATA MOTORS and have conducted various
tests like SWOT ANALYSIS , PEST ANALYSIS etc.. to conduct this study and we
conclude that TATA MOTORS has one of the best marketing strategies in automobile
industry. Its customers are well satisfied. Tata Motors is able to maintain, as well as increase,
their market share by capitalizing on their core competencies. Tata Motors is active,
competitive, and dynamic in all aspects of the automotive industry, which means that there
must be many different activities going on in all areas of the company. As a result of the ever
evolving automotive industry Tata Motors must always be changing and one way to stay at
the forefront of the industry is to make continuous improvements in technology through
research and development. One way that Tata Motors has done this is by producing one of
the most efficient and low cost vehicles on the market. Acquisitions, mergers, and expansion
is another core competency that Tata Motors has is embedded in their company structure and
philosophy. Another core competency that Tata Motors holds is being located in the India.
This location has allowed them to understand not only the Indian market but also the
dynamics of emerging and developing markets. This market understanding and knowledge
allows Tata Motors to manufacture their products at lower costs, sell them to emerging
markets while making profits as well as take advantage of the strong labor base in India.
From this project we conclude that the marketing strategies of Tata motors are according to
market. They always look after their consumers and their needs. They make changes in their
product what consumer wants, that’s why most of the consumers, are satisfied from the
company. Company wants that every people can purchase their product so, they have
product from low price to high price with number of different styles and designs without
compromising product quality. Company is also providing good services to their customers.
Company has its own show rooms and service centers in different places so customers can’t
face many difficulties to purchase their products. “Success will largely be determined to the
extent a company can differentiate itself in terms of intangibles that go with a car.” Success
could well hinge on the best of bundle of services that a carmaker can provide.
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BIBLOGRAPHY
https://www.tatamotors.com/about-us/awards-recognitions/
https://www.ndtv.com/business/stock/tata-motors-ltd_tatamotors/reports
https://economictimes.indiatimes.com/definition/advertising
https://ebrary.net/21268/management/case_study_tata_group*
https://www.researchgate.net/publication/290914263_A_study_on_the_influence_of_promot
ional_activities_for_TATA_ARIA_among_consumers_in_Chennai
https://kritter.in/post/evolution-of-advertising-the-past-the-present-and-the-future/
https://jespublication.com/upload/2020-110829.pdf
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APPENDIX
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Questionnaire
2. Family income
a) Below Rs-75000
b) Rs 75000 to Rs 125000
c) Rs 125000 to 150000
d) above Rs 150000
3. Model of purchase:
a) Loan
b) cash
4. Mention reason to purchase the vehicle from SAIRAM TATA (TATA MOTORS
AUTHORISED DEALER)
a) Quick delivery
b) Customer care
c) After sales service
d) All
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5. How Satisfied are you about the price of TATA CAR when compared with its
facilities?
a) Highly Satisfied
b) Satisfied
b) Neutral
c) Highly Dissatisfied
6. How satisfied are you with the quality of your TATA CAR?
a) Highly Satisfied
b) Satisfied
b) Neutral
c) Highly Dissatisfied
8. How satisfied are you with maintenance cost of your TATA CAR?
a) Highly Satisfied
b) Satisfied
b) Neutral
c) Highly Dissatisfied
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10. How satisfied are you with the services provided by SAIRAM TATA(TATA
MOTORS AUTHORISED DEALER)?
a) Highly Satisfied
b) Satisfied
b) Neutral
c) Highly Dissatisfied
11. How satisfied are you with Advertising effeciency SAIRAM TATA(TATA
MOTORS AUTHORISED DEALER) ?
a) Highly Satisfied
b) Satisfied
b) Neutral
c) Highly Dissatisfied
14. Are the opening and closing time of our workshop convenient?
a) Yes
b) No
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15. Do you think TATA MOTORS has to increase its services center both in Rural and
Urban areas ?
a) YES
b) No
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