TATA MOTORS Pvt LTD

Introduction to TATA Motors:

Tata Motors Ltd is a multinational 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.[2]

Established in 1945, when the company began manufacturing locomotives, the company
manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG,
which ended in 1969.[3] 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. [4]

Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,
Ahmedabad, Sanand and Pune in India, as well as in Argentina, South Africa and Thailand.

History:

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The
company was established in 1945 as a locomotive manufacturing unit and later expanded its
operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz
AG of Germany. Despite the success of its commercial vehicles, Tata realized his company had
to diversify and he began to look at other products. Based on consumer demand, he decided that
building a small car would be the most practical new venture. So in 1998 it launched Tata Indica,
India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and
maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially
the UK and Italy.
Products of TATA Motors

Passenger cars and utility vehicles:

• Tata Sierra (Discontinued)

• Tata Estate (Discontinued)
• Tata Sumo/Spacio
• Tata Safari/Safari-Dicor
• Tata Indica
• Tata Vista
• Tata Indigo
• Tata Manza
• Tata Indigo Marina
• Tata Winger
• Tata Magic
• Tata Nano
• Tata Xenon XT
• Tata Aria
• Tata Pratul

Commercial vehicles:

• Tata Ace
• Tata TL/Telcoline/207 DI Pickup Truck
• Tata 407 Ex and Ex2
• Tata 709 Ex
• Tata 809 Ex and Ex2
• Tata 909 Ex and Ex2
• Tata 1109 (Intermediate truck)
• Tata 1510/1512 (Medium bus chassis)
• Tata 1612/1616 (Heavy bus chassis)
• Tata 1618 (Semi Low Floor bus chassis)
• Tata 1610/1623 (Rear Engined Low Floor bus chassis)
• Tata 1613/1615 (Medium truck)
• Tata 2515/2516 (Medium truck)
• Tata Starbus
• Tata Globus (Range of fully built luxury coaches)
• Tata Hispano Globus (Rear Engined Inter city coach)
• Tata Marcopolo Bus
• Tata 3015 (Heavy truck)
• Tata 3118 (Heavy truck) (8X2)
• Tata 3516 (Heavy truck)
• Tata 4018 (Heavy truck)
• Tata 4923 (Ultra-Heavy truck) (6X4)
• Tata Novus (Heavy truck designed by Tata Daewoo)
• Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Expansion:

After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle. After the
launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the earlier
'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998,
India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous
passenger car of India. Though the car was initially panned by auto-analysts, the car's excellent
fuel economy, powerful engine and aggressive marketing strategy made it one of the best selling
cars in the history of the Indian automobile industry. A newer version of the car, named Indica
V2, was a major improvement over the previous version and quickly became a mass-favourite.
Tata Motors also successfully exported large quantities of the car to South Africa.The success of
Indica in many ways marked the rise of Tata Motors.

Marketing strategies of TATA Motors

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 4X4 Dicor 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 is needed 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.By looking at the Marketing strategies of TATA motors, the SWOT analysis (the
Strengths, Weakness, Opportunities, Threats) can clearly tells why Tata Motors marketing
strategies is one of the successful stories in automobile industry nowadays.