MARKETING

STRATEGY OF
TATA MOTORS

SUBMITTED BY:-

Akhil S Kumar

BBA-4B

(00221701722)
 ACKNOWLEDGEMENT

I consider myself fortunate in getting an opportunity to carry out my

project on TATA MOTORS. I wish to acknowledge through these columns
the individuals who were responsible in helping me to complete the
research work successfully.

I thank Delhi school of professional studies and research for giving me the
opportunity to do this project, which helped me learn a lot.

Akhil S Kumar
 CONTENTS:

1. GENERAL INTRODUCTION TO AUTOMOBILE INDUSTRY

2. HISTORY

3. COMPANY PROFILE

4. VISION AND MISSION

5. POLICIES

6. INDUSTRY DYNAMICS AND COMPETITION

7. MARKETING STRATEGIES

8. CONCLUSION

9. QUESTIONAIRE

10.BIBLIOGRAPHY
 GENERAL
INTRODUCTION
INDIAN
AUTOMOBILE
INDUSTRY
In India, there are 100 people per vehicle, while this figure is 82 in
china. It is expected that India automobile industry will achieve mass
motorization status by 2014.

Introduction
Since the first car rolled out on the streets of Mumbai (Bombay) in
1898, the Automobile Industry of India has come a long way. During
its early stages the auto industry was over looked by the government
and the policies were also not favorable. The Liberalization police
and various tax reliefs by the Govt. of India in recent years have made
remarkable impact on Indian Automobile industry. Indian auto
industry, which is currently growing at the pace of around 18%per
annum, has become a hot destination for global auto player like
Volvo, general motors and ford.

HISTORY
The automobile history dates back to the late 18th century. Nicolas
Joseph Cugnot, a French engineer is credited with inventing the first
self-propelled automobile. Cugnot's vehicle used steam power for
locomotion. The vehicle found military application in the French
army. Cugnot's automobile was never commercially sold. In the
beginning automobile industry was dominated by steam-powered
vehicles. The vehicles were expensive and difficult to maintain. The
incidents of frequent boiler explosions also kept potential purchasers
away. Commercial history of automobiles started with the invention
of gasoline powered internal combustion engines. The German
inventor, Karl Benz constructed his first gasoline powered vehicle in
1885 at Mannheim, Germany. Commercial production of Benz cars
started in 1888.Levassor of France was the first company to
exclusively build and sell motor cars from 1889.The early 1900s
saw many automobile manufacturing companies coming into
existence in a number of European countries and the United States.
 The first mass produced automobile in the United States was the
curved-dash Oldsmobile. It was a three-horsepower machine and
sold 5,000 units by 1904. The economics of the US car market was
disrupted by the arrival of Henry Ford and his Model T car. The
Model T was the world's first mass produced vehicle- a million units
were sold by 1920- a space of 10 years.

INDIAN AUTOMOBILE INDUSTRY:-

India’s automobile sector consists of the passenger cars and utility
vehicles, commercial vehicles, two wheelers and tractors segment.
The total market size of the auto sector in India is approximately Rs
540 billion and has been growing at around 8 percent per annum for
the last few years. Since the last four to five years, the two wheel
segment has driven the overall volume growth on account of the spurt
in the sales of the motorcycle. However, lately the passenger cars and
commercial vehicles segment has also seen a good growth due to
high discount lower financial rate and pickup in industrial activity
respectively. The automobile industry is fairly concentrated as in
most of the segments, two or three players has cornered a major
chunk of the total sales. For instance in passenger car segment, MUL,
Tata Motors and Hyundai motors control around 85% of the total
annual sales. Similarly, in the two wheelers segment the sales volume
of Hero Honda, Bajaj auto and TVS motors constitute around80% of
the total sales and in the commercial vehicle segment the market
leader Telco controls around 56% of the total annual sales. The auto
components industry on the other hand is highly fragmented through
there are dominating players in some of the critical segment.
Outlook
The expected rise in income levels, wide choice of models and easy
availability of finance at low interest rates will drive growth in
passenger cars segment, which is likely to be over 12 percent per
annum for a next four to five years. Two wheelers growth is likely to
marginally slow down, but still grow at an average annual growth
rate of around 10 percent.. The commercial vehicles segment is likely
to grow at a rend rate of 6-8 percent driven mainly by the increase in
industrial and economic activity on account of the expected growth in
the economy, though annual growth rates may fluctuate widely with
the cyclical ups and downs of the economy. Tractor industry growth
is likely to turnaround and posts a growth in volume in2005-06.
However, it will likely to turnaround and posts a moderate growth of
around 4-5percent annual growth rate over the medium term.

Scope of Indian automobile sector

The Indian automobile industry is going through a phase of rapid
change and high growth. With the new project coming up on a
regular basis the industry is undergoing technological change. The
major players are expanding their plants and focusing on mass
customization, mass production, etc«..Nearly every automobile
company is investing at a higher rate than ever before to achieve a
high growth trajectory. The overall investment in the sector has been
increasing quite rapidly. It is expected that by the end of the 2012
Indian automobile sector will be investing a huge amount of 40,000
crore.
THE KEY PLAYERS IN INDIAN AUTOMOBILE
INDUSTRY ARE:
• Hero motors limited
• Tata group
• Maruti Udyog Limited
• Bajaj Auto limited
• Mahindra group
• Ashok Leyland
• Yamaha motors India
• Hyundai motors India limited
• Toyota kirloskar motors privates limited
• Honda Siel cars India limited

External Environment Analysis: Commercial vehicle

Industry:

After the small car assault on Indian roads now the global commercial
vehicle makers are lining up to share the CV market segment that is
growing at around 20% Year on Year except for 2008-009. Recent past
market movements and consolidations are also getting cleared to
determine the way Indian CV market is going to be shaping up.

Indian automotive industry, especially the CV segment has come a long way
since 1950’s to become the 4th largest market in the world now with over
400,000 unit sales. The growth potential of Indian market is well accepted
to attract investment from the global majors not just in installed capacities
but in local R&D, New product design/development initiatives for Indian as
well as export markets.
Market Segment

In 2009 CV market saw sales of 384,000 units of which 45% were LCV. The
export segment saw over 42,000 units mainly to Middle East and African
countries.

The Commercial vehicles are classified based on Gross Vehicle weight which
the weight of the vehicle and the maximum weight the vehicle are allowed to
carry. GVW of over 16 tonnes, the vehicles are classified as HCV,
7.5 to 16 tonnes as MCV and less that 7.5 tones are LCV.
COMPAN
Y
PROFILE
Tata Motors Limited is a multinational automotive corporation
headquartered in Mumbai, India. Part of the Tata Group, it was formerly
known as TELCO (TATA Engineering and Locomotive Company).

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 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 fully-
built 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 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 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.

The Success story

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 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 AND MISSION :-

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´

Shareholders:-
To consistently create shareholder value by generating returns in
excess of weighted average cost of capital (WACC) during the upturn
and atlest equal to weighted average cost of capital(WACC) during the
downturn of the business cycle.

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.
VENDOR AND 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.

COMMUNITY
To proactively participate in reshaping the country’s economic growth,
To take a holistic approach toward environment protection.

BOARD OF DIRECTORS
Mr. Ratan N. Tata (Chairman)

Mr Ravi Kant ( Executive director and managing director)

Dr.J.J.Irani

Mr.Nusli N.Wadia

Dr. R. A. Mashelkar

Mr. S. M. Palia

Mr. Nasser Munjee

Mr. Subodh Bhargava

Mr. V. K. Jairath

Mr. Ranendra Sen

Dr. Ralf Speth

Mr. Carl-Peter Forster

Mr. P. M. Telang
MILESTONES
1945 Tata Engineering and Locomotive Co. Ltd. was
established to manufacture locomotives and other engineering
products.

1948 Steam road roller introduced in collaboration

with Marshall Sons (UK).

1954 Collaboration with Daimler Benz AG, West Germany, for

manufacture of medium commercial vehicles. The first vehicle
rolled out within 6 months of the contract.

1959 Research and Development Centre set up

at Jamshedpur.

1961 Exports begin with the first truck being shipped

to Ceylon, now Sri Lanka.

1966 Setting up of the Engineering Research Centre at Pune

to provide impetus to automobile Research and Development.

1971 Introduction of DI engines.

1977 First commercial vehicle manufactured in Pune.

1983 Manufacture of Heavy Commercial Vehicle commences.

1985 First hydraulic excavator produced with Hitachi
collaboration.

1986 Production of first light commercial vehicle, Tata 407,

indigenously designed, followed by Tata 608.

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.

1995 Mercedes Benz car E220 launched.

1996 Tata Sumo deluxe launched.

1997 Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

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.

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.

2001 Indica V2 launched - 2nd generation Indica.

100,000th Indica wheeled out.

Launch of CNG Indica.

Launch of the Tata Safari

EX.

Indica V2 becomes India's number one car in its segment.

Exits joint venture with Daimler Chrysler

2002 Unveiling of the Tata Sedan at Auto Expo 2002.

Petrol version of Indica V2 launched.

Launch of the EX series in Commercial vehicles.

Launch of the Tata 207 DI.

2,00,000th Indica rolled out.

5,00,000th passenger vehicle rolled out.

Launch of the Tata Sumo'+' Series.

Launch of the Tata Indigo

Tata Engineering signed a product agreement with MG

Rover of the UK.

2003 Launch of the Tata Safari Limited Edition.

The Tata Indigo Station Wagon unveiled at the Geneva

Motor Show.

On 29th July, J. R. D. Tata's birth anniversary, Tata

Engineering becomes Tata Motors Limited.
Tata SFC 407 EX Turbo launched.

3 millionth vehicle produced.

First CityRover rolled out.

135 PS Tata Safari EXi Petrol launched.

2004 Tata Motors unveils new product range at Auto Expo

'04.

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.

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 Tractor-

Trailer.
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 milestone

Launch 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.

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.
2009 Tata Marcopolo Motors, Dharwad plant begins
production.

Tata Motors launches Nano - The People's Car.

Introduction of New World standard truck

range.

Launch of premium luxury vehicles - Jaguar XF, XFR and

XKR and Land Rover Discovery 3, Range Rover Sport and
Range Rover from Jaguar and Land Rover in India.

Tata Nano wins the Indian Car of the Year (ICOTY) Award.

Tata Motors launches the Sumo Grande MK II.

Tata Motors begins distribution of Prima World truck.

Tata Motors acquires remaining 79% in Hipo

Carrocera.

Tata Motors launches the next generation all-new

Indigo Manza.

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.
SUBSIADARIES , JVs and ASSOCIATES

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.
Joint Venture , Subsidiary and Associate Companies :

➢ Jaguar Land Rover

➢ Tata technologies Ltd. (TTL) and its subsidiaries
➢ Telco construction Equipment Co. Ltd. (Telcom)
➢ HV Axles Ltd. (HVAL)
➢ HV transmissions Ltd. (HVTL)
➢ TAL manufacturing solutions Ltd. (TAL)
➢ Sheba properties Ltd. (Sheba)
➢ Concorde motors (india) Ltc. (concorde)
➢ Tata Daewoo commercial vehicle company Ltd. (TDWCV)
➢ Hispano Carrocera S.A (HC)
➢ Tata Motors insurance broking and Advisory Services Ltd.(TMIBASL)
➢ Tata Motors European technical centre plc
➢ Tata motors Finanace Ltc.
➢ Tata Motors Thailand
➢ Tata Marcopolo Motors Ltd (TMML)
➢ Tata Motors (SA)Proprietary Ltd. (TMSA)
➢ TML Distribution Company Ltd .
POLICIES
Tata Motors Commercial Vehicles:
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.

Medium and Heavy Vehicles:

Rigid Trucks
Tractor
Trailers
Tippers

Light Vehicles:
Rigid Trucks Tippers

Small Vehicles:
Ace
Winger
207 DI
EX
Telcolin
e Xenon

Buses:
Public Transport
Intercity Transportation
Vehicle type
Product Profile Tata Motors Limited
Passenger Cars & Utility vehicles
Tata Sumo/Spacio
Tata Safari
Tata Indica
Tata Indigo
Tata Winger
Tata Magic
Tata Nano
Tata Xenon XT
Tata Xover (2009)
Tata Manza (2009)
Tata Aria (2010)

Commercial Vehicles are

Tata Ace
Tata Starbus
Tata Globus
Tata Marco polo Bus
Tata Novus
Tata 407 EX Military
Vehicles Tata LSV
Tata 407 Troop Carrier
Tata Winger Passenger Mini Bus

Defence Vehicles
Tata 407 (4 x 4) Soft Top Troop Carrier
Tata LPT 709 E Hard Top Troop Carrier
Tata LPTA 1621 TC (6 x6)
Tata LPTA 1615 TC (4 x2)
Tata SD 1015 TC (4 x4)
Tata 407 / (4 x2) Hard Top Troop Carrier
Tata LPTA 1615 TC (4 x 4)
Tata LPTA 713 TC (4 x4).
THE COMMITTEES OF THE BOARD
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 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.

COMPANY STRUCTURE
INDUSTRY
DYNAMICS AND
COMPETITION
TATA Motors is having highest market share in each segment. Year on year
sale of vehicles is increasing but Market share is fluctuating. From Oligopoly
market CV industry in India will become a prefect competition market. As
many of Indian companies are now entering into the market place with JV
with foreign experts in CV. Mahindra & Mahindra is coming up with Navistar
(Mahindra Navistar in India) for Heavy CV. Ashok Leylend is coming up with
Nissan for Light Commercial Vehicles (LCV) . Similarly other player niche
players of world CV markets are coming up in Indian market like Volvo,
Mercedes Benz & Scania. Now the time Indian market place is very
demanding, there is extreme demand for AC Buses & construction equipments
for building better infrastructure for India. The scope of the project will be
the strategies adopted by the local companies & by the world CV experts in
the global market. We ll benchmark the Trends in the Global CV Industry, the
marketing /channel strategies these companies adopt. How these companies
will meet the local requirement of India customers. How govt is helping
Indian CV industry which itself create an all together different marketing
strategy / channel.

The Indian majors control majority of the market share with TATA motors
enjoying enjoying major share of that in both cargo and passenger vehicle
with a share of 64%. TATA, Ashok Leyland and Mahindra & Mahindra
together control over 84% share. Over last 5 years, the CV market has seen
global majors entering India eyeing to taste this huge potential. A lot of
consolidations, JVs have taken place to position them in India, ASEAN
market.
Characteristics of Commercial Vehicle Industry
The CV industry draws its demand from the economy and hence is prone
to cyclicality. However, due to greater versatility of usage, the LCV
demand is less cyclical than the M&HCV demand.

Servicing & Distribution network

CVs do not enjoy a very high brand loyalty. Purchases are largely
influenced by nature and availability of the product at the point of
purchase. With the product being one of the most commonly used
products across the country,
it is imperative for the players to be present all across the country. A wide-
spread distribution network will provide the manufacturers a large and
geographically diverse presence, which in turn will help generate higher sales
volume; a necessity in a highly capital intensive industry. Further, once the
customer has been acquired, it is important to service the customer in order
to develop brand consciousness and build a brand loyalty. Thus, availability
of spare parts and service centers is crucial for servicing the customer and
developing brand loyalty.

Technology tie-ups

Changing customer preferences, rising fuel costs, growing environment

concerns and consequent government regulations call for implementation
of a better and improved technology. Additionally, with the opening up of
global markets, there is a need for the domestic players to meet with
international technology standards. Thus, technology is the key to survival
as well as growth in the CV industry. A prudent technical collaboration not
only renders the ability to meet stringent environment norms, both
domestic as well as international, but also helps players in introducing
newer and technologically more advanced vehicles; which is a key to their
survival.

Innovation
The demand for CV is highly technologically driven. Both changing
consumer preference and government regulations make it imperative for
the players to constantly innovate and introduce newer and better
products.

Geographical Diversification
The movement in demand for CV closely follows the movement of economic
growth. Past trends show that the CV industry has a 4-5 year cycle, with the
growth in demand moving closely with the growth in industrial activity.
Thus, during periods of economic downturns, the industry experiences a
huge decline in demand, which is a matter of high concern for an industry
 which is capital intensive by nature. In order to reduce this dependence on
economic activity, manufacturers need to diversify into other economies.
Technological tie-ups with players having strong international presence can
help manufacturers to expand globally and thereby reduce their correlation
with domestic economic cycles.

Vehicle financing
The availability of vehicle finance at the point of purchase can foster sales.
Traditionally, financing was left to the institutions for whom the business
was their core competency. However, in order to provide complete buying
assistance to the purchasers at the point of purchase, many of the CV
manufacturers set up their own financing companies or tied up with banks.

Changes being witnessed in Indian Commercial vehicle market:

Market
Developed Road Infrastructure
Reduced Overloading Customized
vehicle requirement

Customers:
Increased Awareness
Purchase decisions largely by life cycle cost
Products:
Shift from MCV to HCV
Explosive growth of
LCV Growth of
premium CVs
Emergence of special application vehicles

Global Challenges in the Automotive Industry

Opportunities:
1) Global markets getting stagnant, while China, India and Thiland
driving double digit growth

2) Indian GDP targeted at 8-9.5% growth in coming years leading to

the need for massive infrastructure movement
 3) India does not have a clearly defined scrap policy for old vehicles. So
far the small operators have been pushing the old vehicles on road to
maintain their bottom-line. However this fleet needs to be replaced with
better technology vehicles with better load capacity and less maintenance

4) India Retail, logistic, distribution sectors getting organized

creating opportunity for CV market to split in to further more
segments

5) Easy financial options. Most of the vehicle makers now have a strategic
relationship with bankers and also their own financial units for easy
credit.

6) More specialized vehicles required for perishable, oil, mining sectors .

AREA OF OPERATION OF TATA MOTORS:-

The kind of market segmentation followed by Tata motors is fully

market coverage. This means that the entire products manufactured by
the company are sold in various markets.
• Global
• National
• Regional

Global:-
Global operations - UK, South Korea, Thailand and Spain. TML -
world's fourth largest truck manufacturer. World’s second largest bus
manufacturer .Tata motors a growing global footprint and has
established itself in market across the world as one of the world’s most
prestigious auto brands. The emphasis is now on establishing a solid
local presence in these countries as this was the key to long-term
success and building trust with the customer. With subsidiaries in
south Africa, Europe and strong presence in over 15 countries, it
aspire to be globally renowned in utility vehicles.

National:-
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
Fiatpowertrains. The company is establishing a new plant at Sanand
(Gujarat). The company'sdealership, sales, services and spare parts
network comprises over 3500 touch points; TataMotors also
distributes and markets Fiat branded cars in India.

Regional:-
The company also operates within the local market. It has dealers
within Gujarat ; here thedealers ultimately reach the customers.
TATA NANO MATKETING STRATEGY
The introduction of the Nano received media attention due to its targeted
low price. The Financial Times reported: "If ever there were a symbol of
India’s ambitions to become a modern nation, it would surely be the Nano,
the tiny car with the even tinier price-tag. A triumph of homegrown
engineering, the $2,200 (€1,490, £1,186) Nano encapsulates the dream of
millions of Indians groping for a shot at urban prosperity." The car is
expected to boost the Indian economy, create entrepreneurial-
opportunities across India as well as expand the Indian car market by 65%
The car was envisioned by Ratan Tata, Chairman of the Tata Group and
Tata Motors, who has described it as an eco-friendly "people's car". Nano
has been greatly appreciated by many sources and the media for its low-
cost and eco-friendly initiatives which include using compressed-air as fuel
and an electric-version (E-Nano Tata Group is expected to mass-
manufacture the Nano, particularly the electric-version, and, besides selling
them in India, to also export them worldwide.

Critics of the car have questioned its safety in India (where reportedly 90,000 people are
killed in road-accidents every year), and have also criticized the pollution that it would
cause (including criticism by Nobel Peace Prize winner Rajendra Pachauri). However,
Tata Motors has promised that it would definitely release Nano's eco-friendly models
alongside the gasoline model The Nano was originally to have been manufactured at a
new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull
out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its
existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for
Sanand Gujarat. The company will bank on existing dealer network for Nano
initially. The new Nano Plant could have a capacity of 500,000 units, compared to
300,000 for Singur. Gujarat has also agreed to match all the incentives offered by
West Bengal government.

COST CUTTING FEATURES

The Nano's boot does not open, instead the rear seats can be folded down to
access the boot space.
It has a single windscreen wiper instead of the usual Some exterior parts of
it are glued together, rather than welded.
It has no power steering.
Its door opening lever was simplified.
It has 3 nuts on the wheels instead of the statutory 4
nuts. It only has 1 side view mirror

PRICE OF NANO
Tata initially targeted the vehicle as "the least expensive production car in the
world" aiming for a starting price of 100,000 rupees or approximately US$2000
(using exchange rate as of March 22, 2009) 6 years ago, despite rapidly rising
material prices at the time.
As of August 2008, material costs had risen from 13% to 23% over the car’s
development, and Tata faced the choice of introducing the car with an artificially
low price through government subsidies and tax- introducing the car with an
artificially low price through government subsidies and tax- breaks forgoing
profit on the car using vertical-integration to artificially boost profits on cars at
the expense of their materials industries partially using inexpensive polymers or
biodegradable plastics instead of a full metal- body raising the price of the car
option
MARKETING
STRATEGIES
1. Product, Branding, and Advertising

Every business started from 0, from no one knows it until everyone know it.
Advertising is one of the most common ways to make car buyer or car enthusiast
aware of the new car with special promotion price. Another more important way of
advertising is to create an image or brand image. Take BMW Z3 for example, it was
introduced in 1996 and shortly the car has been used in the famous James Bond
movie. This is similar to Nissan 350 Fairlady Z in the recent 2007 Fast and the
Furious 3 – Tokyo Drift. Over the years Tata Motors have been successful in creating
their brand image especially they use some famous stars as their spokesman.
Other important marketing strategies are such as the packaging, innovations, and quality
control. Tata Motors provide many innovative features to attract car lover. One of these
innovations is the Tata Safari 4X4Dicor that has “Reverse Guide System”. A weather- proof
camera is fixed to the rear car to help the driver while reversing the car.

2. Pricing Strategy

There are various factors to determine a price of a car. These factors are such as
market condition (it can’t be too low or too high with the prices of same vehicle from
competitors, it has to be at par), cost incurred to build a car, profit by company, dealer
profit. Giving discount every month and special promotion for certain type of vehicle
also one of the strong strategy use by Tata Motors.
Discount can be made from Company’s profit or from dealer’s profit at certain
range.

3. Place
Place of dealership does play an important role. The channel of distribution,
physical location, and dealership method of distribution and sales is generally
adopted. The distribution of vehicle must be in a very systematic way, from the
plant to dealership and to end user. This is not only in India itself but also to the
world-wide dealership.

4. Maintenance and Support

After sales service is also another important marketing strategy for most of the car
buyer to choose for the right car. End user will not want to spend a lot of time to
travel to a far place just to service the car such as change engine oil, oil filter and
some simple checking. Parts and accessories must also easy to access when it
isneeded to keep the customer satisfy from buying Tata cars until maintaining the
car or even until they sell the car and change to a newer Tata model.
 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 involve
market research and product development, design, and testing. It is the business activity
of 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 a
reasonable price, provided at all places to maximize the sale of one’s product.

MARKETING MIX
PRODUCT PRICE PROMOTION PLACE
Brand Pricing Personal Channels of
Strategy Selling Distributions
Packaging Pricing & Advertising Physical
Quality Distribution
Innovations Price & Public Wholesaler &
Alterations Relations Retailers
Quality Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

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.

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.

b. 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.

c. 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.

2. PRICE (Pricing Strategy, Alterations, Discounts)

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.

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.

b. Advertising : Advertising is a form of commercial mass communication designed to

promote the sale of a product or service. Tata Motors is responsible for the advertising of
its products. The dealer does play any role in the advertising. The various media used for
advertising are T.V., Newspapers, Magazines, Hoardings, Internet etc. The dealer conducts
point-of-purchase displays to advertise the products. The advertisements done by the Co.
help the dealer to capitalize on the market.

c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate

advertising and personal selling; Sales promotions are designed to persuade consumers
to purchase immediately by providing special incentives such as cash rebates, prizes,
extra product, or gifts. The Co. conducts intensive sales promotion during festivals such
as festive discounts during Diwali.
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

4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution : In case of vehicles, dealership method of distribution and

sales is generally adopted. Tata Motors have also adopted dealership method of
distribution of its products. The dealers purchase products from the Co. at a negotiated
price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As the
Co. deals in commercial and passenger vehicles, there may be a single or distinct
dealerships to market its commercial and passenger vehicles in a town. However, if there
is a single dealership appointed, then the commercial and passenger vehicles are
managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies buses and
passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles
are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of
these are looked after by the Co. itself.

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.
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.
 ANALYSIS OF THE
MARKETING STRETEGIES
PEST ANALYSIS
POLITICAL:
Since Tata Motors operates in multiple countries across Europe, Africa,
Asia, the Middle East, and Australia, it needs to pay close attention to the
political climate but also laws and regulations in all the countries it operates in
while also paying attention to regional governing bodies. Laws governing
commerce, trade, growth, and investment are dependent on the local government
as well as how successful local markets and economies will be due to regional,
national and local influence.
On March 26, 2008, Tata Motors reached an agreement with Ford to
purchase Jaguar and Land Rover. In order to be capable of this acquisition, Tata
Motors must have a full comprehension of the governing bodies and laws
regulating commerce in the home country, the United Kingdom, but also in
countries Jaguar and Land Rover operate in.
In accordance, Tata’s headquarters in Mumbai, India, strictly controls and
regulates operations in all dealerships and subsidiaries, in addition to knowing
and abiding by all labor laws in the multiple countries where they have
manufacturing plants it has to watch political change. This will be especially
vital in the future as Tata Motors continues to expand and grow into new
markets. “While currently about 18% of its revenues are from international
business, the company's objective is to expand its international business, both
through organic and inorganic growth routes”. The foundation of the company’s
growth internationally is a deep understand of economic stimulation, customer
needs, and individual government regulations and laws. Although it is the
headquarters ultimate responsibility to make sure each individual office and
branch is operating and abiding by the local laws, it will become increasingly
more important for that duty to be taken care of at the regional or even local
level.
ECONOMIC:
Operating in numerous countries across the world, Tata Motors functions
with a global economic perspective while focusing on each individual
market.
Because Tata is in a rapid growth period, expanding or forming a joint venture
in over five countries world-wide since 2004, a global approach enables Tata
Motors to adapt and learn from the many different regions within the whole
automotive industry. They have experience and resources from five continents
across the globe, thus when any variable changes in the market they can gather
information and resources from all over the world to address any issues. For
instance, if the price of the aluminum required to make engine blocks goes up in
Kenya, Tata has the option to get the aluminum from other suppliers in Europe
or Asia who they would normally get from for production in Ukraine or Russia.
Tata Motors also has to pay close attention to shifts in currency rates
throughout the world. Currency fluctuations can equate to higher or lower
demands for Tata vehicles which in turn affect profitability. It can also mean a
rise in costs or a drop in returns. But they also have to pay attention to not just
the domestic currency, the rupee, but also to the dollar, euro, bhat, won, and
pound, to just name a few. Just because the rupee is strong against the dollar
does not mean it is strong against all the other currencies. Attention to currency
is important because it influences where capital investment will develop and
prosper.
SOCIAL:
Undoubtedly, the beliefs, opinions, and general attitude of all the
stakeholders in a company will affect how well a company performs. This
includes every stakeholder from the CEO and President, down to the line
workers who screw the door panel into place, from the investor to the customer,
the culture and attitude of all these people will ultimately determine the future of
a company and whether they will be profitable or not. For this reason, Tata
Motors tends to use an integration and rarely separation technique with foreign
companies they acquire.
On the other hand, some economic issues that Tata Motors face must also
be looked at from a more localized perspective. For instance, the market in India
for cars is much different than the market for cars in Italy. For one, India has
over one billion more people than Italy does, thus the market is much larger or
not as limited. Second, you must also take into affect the demographics and the
average income of each market. Italians have a higher average income per capita
than Indians and Italian citizens tend to drive larger and fancier cars. For this
reason, the Tata Nano might not do so well in the Italian market. In summation,
Tata Motors views the economy from a global perspective with operations
across the entire globe; however, they must also maintain a local market
understanding and knowledge when it comes to product positioning and
placement throughout the different markets Tata conducts business in.
In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company,
which was at the time Korea’s second largest truck maker. Rather than using de-
culturation or assimilating Daewoo, Tata took an integrated approach, and
continued building and marketing Daewoo’s current models as well as
introducing a few new models globally just as it had been done under Korean
management.
With the new acquisition of Jaguar and Land Rover, Tata will have to be
careful with how they handle the acquisition. While Land Rover is thriving while
under the helm of Ford, Jaguar was more of the trouble child. “Jaguar cost Ford
some $10 billion during its 18-year stewardship and its sales were in headlong
decline, especially in America, its most important market. Industry analysts also
struggled to see what value Tata could add that had eluded Ford, and what
synergies there could be between a maker of trucks and basic cars… and two
luxury marquees”. Separation could be a good approach for the immediate future
to keep the name of Jaguar and Land Rover distinguishable and associated with
the luxury automobile market. Overall, Tata does a good job of integrating some
aspects of their large multi-national conglomerate into new acquisitions;
however, the company must also understand that separation from the name Tata
can be valuable in some social areas.
TECHNOLOGY
Tata Motors and its parent company, the Tata Group, are ahead of the game in
the technology field. The Tata Group as a whole has over 20 publicly listed
enterprises and operates in more than 80 countries world-wide. This equates to
Tata Motors having lots of experience and resources to draw from for research
and development purposes. “The foundation of the company’s growth 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”.
Employing 1,400 scientists and engineers, Tata Motors’ Research and
Development team is ahead of the pack in India’s market and right with the rest
of the field internationally. Among Tata’s firsts are “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,” as well as the
increasingly famous Tata Nano, which is projected to be the world’s cheapest
production car. In the automotive industry, it is becoming increasingly crucial
for manufacturers to stay on top of the technology curve with new problems
always rising such as escalating gas prices and pollution problems. Tata
recognizes this and dedicates lots of resources and time into research and
development to be even with or preferably ahead of other competitors, global
trends, and changing economies. In all, an automobile manufacturer must
change, adapt, and evolve to stay competitive in the automotive game, and this is
exactly what Tata is doing with their rapid growth, and extensive research and
development.
THE AMAZING STORY OF TATA MOTORS SUCCESS
His table in the corner office on the first floor of Bombay House is full of papers, giving it
an almost disheveled look. But the man who occupies that table - Ravi Kant, managing
director of Tata Motor - isn't complaining.

"Most of these are letters from people all over the world wanting to be our partners. Some
want to sell our products in their countries, some want to be our manufacturing partners,
while others are complaining about why we aren't giving them an opportunity to take the
fascinating Tata Motors story abroad," he says.

The flood of letters is only an acknowledgment of one of the biggest turnaround stories
scripted by a team led by Tata Group chairman Ratan Tata

His most trusted lieutenant in that story was Kant, whom Tata handpicked from Philips in
1999 as executive director, commercial vehicles business.

Consider the challenges Kant faced: two years after he joined, Tata Motors almost sank and
reported a net loss of Rs 500 crore (Rs 5 billion) - the worst in its history.

All that is distant memory now for the 60-year-old MD.

And it's all in the figures: the company reported a net profit of Rs 1,237 crore (Rs 12.37
billion) in the year ended March 2005. In the second quarter of this year, the net profit was
Rs 338 crore (Rs 3.38 billion).

India's largest commercial vehicle manufacturer with a 59 per cent market share is also the
country's second-largest car manufacturer.

And Kant has already moved on to the next level - the more difficult one - of strengthening
the company's position as a leading Indian multinational.

The central theme of the second part of the story (the target is to double vehicle
production from 4,00,000 now to 8,00,000 in four years) that he has scripted is
"management of the development of new products" and not trying to develop everything
in-house.

That's a huge change in mindset for a vertically integrated company that believed it
could do everything better than others. "We are moving from a hierarchical model to a
collaborative approach," Kant says.
And the results are already showing: 80 per cent of Ace, the only diesel mini truck in the
world, is outsourced. The 0.75 tonne mini truck is now available in only five states in the
country and already sells 35,000.

The plan is to increase the sales to 60,000. "That's the model we are now going to follow
for all our new products," Kant says.

And vendors are key partners in the process. If Kant is always on the move (a reason why the
letters keep piling up on his table), the reason is simple: he is constantly meeting vendors in
India as well as abroad.

"We are urging our vendors to take a more holistic approach. Earlier, an axle supplier used
to think only about the quality of the axle at the best possible price. We are now
encouraging them to think about the entire vehicle and how the axle fits into the overall
plan that we have for the vehicle. The suggestions we get are simply amazing," Kant says.

In a way, Kant is following the business process outsourcing model and has decided not to
manufacture low-end items anymore. The company will look after only two key functions
directly: understanding and developing the market segments and commitment to customers.

Everything else will be part of the "collaborative work" -- be it new product development,
supply chain management or design and styling of its products.

"It's a complex process as we have to build a web of network outside but the strategy is
simple: we will give away the low end of manufacturing and take the high end of
specialised knowledge from outside," the MD says. The outsourcing model has also been
expanded to designing and styling of new vehicles.

If such initiatives helped clean up the supply chain and saved costs {Rs 1,000 crore (Rs 10
billion) in three years}, the new model - that of "management" of new products - meant
several other things, one them being taking care of the "people factor."

Kant has forced the hierarchy conscious company to push forward its bright young
managers to positions of responsibility. Take Ace, for example.

A young team of designers and engineers was given the brief to produce a rugged,
reliable, modestly priced mini truck with easy manoeuvrability and great mobility. The
team got it ready for production in just 42 months.

Kant's main contribution to Tata Motors has been the push for international forays - one of
the main reasons for his elevation to the post of MD ahead of ex-colleagues like V
Sumantran.
Says Kant: "In a cyclical business such as ours, it is important that we hedge against
cyclicality. International business offers an opportunity as different countries go through
peaks and troughs in demand at different points in time. Our capacity utilisation is more
effective and risks of downturns can be mitigated."

The first step was to align the international business to the two business units - the
passenger car business unit and the commercial vehicle business unit, to bring greater
focus and increased synergy between the domestic and international operations.

From being present as an exporter in 70 countries, the company today focuses on 15-20
key countries where it will have a significant presence in terms of volumes and market
shares.

The crowning glory was of course the acquisition of Daewoo in Korea - a deal personally
supervised by Kant. The synergies were significant - a presence in the 250-400 HP range of
trucks was what the Korean company brought to the table.

This complemented the existing product range of Tata Motors, which delivers vehicles up
to 210 HP. In the commercial vehicle business, says Kant, "our competitive edge will be in
our ability to offer cost-effective products and services to each market"
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 marketing-
led 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.
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.

 QUESTIONNAIRE

STUDY ON CUSTOMER SATISFACTION TOWARD TATA MOTORS (CARS) WITH SPECIAL

SIGNIFICANCE TO SHREEJI AUROMATR. AUTHORISED DEALER

Customer name:

Address:

Vehicle number:

Model:

1. Occupation

a) Professional

b) Govt. employee

c) Private employee

d) student

e) Business

f) Others

1. Family income:

a) Below Rs-75000

b) Rs 75000 to Rs 125000

c) Rs 125000 to 150000

d) above Rs 150000

2. Model of purchase:

a) Loan

b) cash
3. Mention reason to purchase the vehicle from SHREEJI AUTOMATR (TATA
MOTORS AUTHORISED DEALER)

a) Quick delivery

b) Customer care

c) After sales service

d) All

4. What do you feel about the price of TATA CAR when compared with its facilities?

a) High

b) Normal

c) Low

5. Do you satisfied with your TATA CAR?

a) Yes

b) No

6. What attribute made you to purchase?

a) New model & design

b) Mileage

c) Pick-up

d) Others

7. What is the maintains cost of your TATA CAR?

a) Medium cost

b) Low cost

c) High cost
8. Please specify the overall performance of your TATA CAR?

a)Excellent

b) Good

c)poor

9. Do you satisfied with the services provide SHREEJI AUTOMATR (TATA

MOTORS AUTHORISED DEALER)?

a) Yes

b) No

10. Do you satisfied with SHREEJI AUTOMATR (TATA MOTORS AUTHORISED DEALER)
responding to your needs?

a) Yes

b) No

11. Do you prior appointment for your service and maintenance?

a) All the

time

b)Sometime

c)Never

12. Are you satisfied with the workshop service?

a) All the time

b) Sometime

c) Never

13. Are the opening and closing time of our workshop convenient?

a) Yes

b) No
14. Do you satisfy the quality of workmanship of our workshop?

a) Highly satisfied

b) Satisfied

c) Not satisfied

15. Do you think TATA MOTORS has to increase its services

center both in Rural and Urban areas ?

a) YES
b) NO