Tata Motors

Marketing Mix
Business & Enterprise Course
Oxford, England
Krishmaan Chadha
10th July, 2018
Table of Content

Cover Page

Table of Content

Introduction

Product

Price

Place

Promotion

Conclusion

Bibliography
 Introduction:
Tata Motors is a Public Limited Company founded by Jamsetji Tata in
1868 in Mumbai, India. Jaguar, Land Rover, and Fiat India are few of the
subsidiaries of Tata Motors. Tata Motors produces consumer goods,
producer goods, and producer services as well, for example, insurance and
other financial aid. Tata Motors aims to produce high quality automotive
products at low prices in India through its brand name ‘Tata’. Tata started
manufacturing in India, however, through the years it has grown into a
MNC and holds operations worldwide. Tata Motors also supplies vehicles
to multiple armies around the world. Tata also uses famous celebrities as
brand ambassadors in order to help and create more awareness about their
product, for example, Lionel Messi. Tata’s marketing mix has shown
success over the years, and continues to help them grow.

Product:
Tata offers 13 different types of cars to its consumer in India through its
brand name ‘Tata’. These cars consist of sedans, hatchbacks, and SUVs.
On the other hand, Tata also produces lorries, trucks, and vehicles used for
defence. The lorries and trucks are used by plenty businesses in India in
order to help transport goods from one place to another. In 2008, Tata
Motors acquired Land Rover and Jaguar. Land Rover is also an automotive
company which produces high-end SUVs with great quality and
performance. Compared to its competitors, Land Rover is the only
company which does not produce any sedans, and has mastered its
production in the SUV market. The Unique Selling Point (USP) of Land
Rover is that it offers comfort and performance in the 4x4 form. This also
gives them a competitive advantage over competitors like Audi and BMW.
Jaguar is a car-manufacturing brand as well, Jaguar produces high-class
sedans which deliver luxury and performance to its consumers. The USP
of Jaguar is that is offers a unique design alongside luxury and also offers
a handful of cars with extreme performance. Land Rover and Jaguar also
allow customers to customise the interior, exterior, snd upholstery of the
vehicles when they choose to purchase one. This has also allowed them to
have a upper hand over some of the competitors. This is contrary to the
cars Tata produces under their own brand name, as Jaguar and Land Rover
are part of a high end market segment, and ‘Tata’ cars are part of the low
 end market segment in India. Tata Motors also holds a handful of
insurance companies. Tata Technologies, another subsidiary of Tata
Motors, that offers help and assistance to other business firms. These
acquisitions have allowed Tata Motors to enter and diversify their risk into
various markets in the worldwide. In India, Tata Motors is known for
producing market oriented products as it tends to satisfy the wants of
customers, for example, by offering a high quality and low priced SUV in
India, the Tata Hexa. It does not only satisfy consumer wants, businesses
have also benefited as lorries and trucks like the Tata Ultra have allowed
firms to make transport easier and more efficient.

Price:
Tata Motors uses a price penetration strategy to achieve high sales in India
under the brand name ‘Tata’. The Tata Nano, in India, sells at £3300, being
one of the lowest priced cars in the country. The pricing strategy has been
successful in India as it helps satisfy the wants of the low class in the
market segment. This also helped Tata experience a spike in sales once the
car released. However, on the other hand, Jaguar and Land Rover use a
price skimming strategy. The Price Skimming Strategy is when products
are set at a relatively high price to show the quality of the product,
however, will not acquire demand from the entire market due to its price.
This has helped Land Rover and Jaguar implement a brand image of being
a luxury good for its consumers and has also shown success as the brand
continues to grow in the global market. The Land Rover starts at £58,000
and goes up to £4.7 Million, whereas, the Jaguar starts at £50,000 and goes
up to £3.1 Million.

Promotion:
Tata Motors recently appointed Lionel Messi, an Argentinian Football
Player as its brand ambassador to help and endorse the brand into markets
worldwide. Tata Motors also uses social media, TV advertisements, and
Newspaper articles to help and raise awareness about the brand and its
products. Tata Motors is also the sponsor of multiple events and sport
leagues world-wide. Advertisements on TV and Social Media are usually
persuasive forms of advertisements, on the other hand, advertisements in
newspapers are informative. These are the above-the-line forms of
promotion Tata Motors use. Tata Motors also use various forms of Sales
Promotion with its ‘Tata’ Brand in India. They occasionally offer price
reductions to its customers during festive seasons. This strategy has shown
success in India as customers in India tend to purchase most during festive
seasons, therefore, this portrays the success of Tata’s market research as
they know when to offer price reductions. Jaguar and Land Rover also
offer After Sales Service to its customers, for example, free servicing and
repairs for cars purchased. Test Drives are also offered by these firms, this
helps attract customers towards the product as they can get a demo before
they purchase the product, however, this is offered by most car companies.
Tata Motors has spread great awareness using social media as it uses user
search history to help and display advertisements. These strategies have
helped the firm gain brand loyalty and create awareness. Tata also
currently holds a terrific brand image in India due to its name being
renowned for having great ethics and goodwill, therefore, this has helped
them achieve some amounts of brand loyalty.

Place:
Tata Motors use Distribution Channel 3, which consists of the producer,
distributer, retailer, and then finally the consumer. Tata Motors is one of
the few companies which avoids the use of a wholesaler when it is
supplying the spare parts for its vehicles. Tata Motors has one of the
largest sale networks in India, and currently has showrooms throughout the
world to display Land Rover and Jaguar cars. Tata uses showrooms to
display cars in India. This allows customers to have direct contact with the
vehicle, and also allows managers to give feedback about the response on
the vehicle’s sales. The Jaguar and Land Rover showrooms in India are
located close to other high-end automotive brand showrooms, the area of
the showrooms is also in a posh area of the town. This conveys that Tata’s
market research has been successful as they have located their showrooms
as per the target audience.

Conclusion:
Tata Motor’s marketing mix has triumphed through the years as they have
become more profitable and have expanded into global markets
successfully. Tata’s Jaguar and Land Rover display luxury and are wanted
by most people of high income levels. Tata’s home brand has also shown
success in the Indian market through its unique design and low price.
Tata’s production of producer goods have also helped themselves and other
businesses using transport in India. Jaguar and Land Rover use high prices
to maintain their brand image, however, on the contrary, Tata’s home brand
produces one of the lowest priced consumer car in India. Promotional
strategies used by Tata have also helped them experience high sales.
 Advertisements are highly utilised by Tata Motors to increase awareness
about their products, Tata even uses various forms of sales promotion to
attract more customers. Market research done by Tata has also portrayed
their excellence in choosing the right place to set up their showrooms to
display their vehicles. Tata Motors PLC continues to expand and increase
profitability while maintaining their brand image and increasing awareness
about their products.

Bibliography:

Borrington, Karen, and Peter Stimpson. IGCSE Business Studies. Hodder

Education, 2006.

“Cars & Utility Vehicles.” Tata Motors Limited - Largest Indian

Automobile Manufacturer, www.tatamotors.com/products/cars-utility-

vehicles/.

“Company Profile - Tata Motors Limited.” Tata Motors Limited - Largest

Indian Automobile Manufacturer, www.tatamotors.com/about-us/

company-profile/.

“Homepage.” Tata, www.tatatechnologies.com/.

Zigu. “Tata Motors Marketing Mix (4Ps) Strategy.” MBA Skool-

Study.Learn.Share., www.mbaskool.com/marketing-mix/products/16981-

tata-motors.html.