Economics

Project on product
differentiation
Made by Binisha, Shruti,
Durgesh, Anas, Sandeep,
Mithul.
PRODUCT DIFFERENTIATION

MEANING:-
 It makes a product look more attractive.
 It showcases the difference between
product.
 Creates a competitive advantage.
 That means it creates healthy competition
among the firms.
 This generates a greater value for the firm
and shareholders.
Competitive Advantage

COMPARATIVE DIFFERENTIAL

 It is also called as cost  It is created when a firm

advantage. product or service differ
 It have ability to produce at from the competitor
a lower cost. product
Absolute Advantage

 Absolute advantages can produce something

using a smaller number of inputs than
another party producing the same product.
As such, absolute advantage can reduce costs
and boost profits. 
COMPETITIVE ADVANTAGE
Significance of product differentiation

 Firms can defend their prices

 Quality is improved
 Helps in launching new goods with better
performance
 strategy to adapt to a moving environment
 Helps consumers to differentiate product
 Vertical differentiation- order several
goods according to quality and price
 Horizontal differentiation - products
are differentiated according to features
 For e.g. differentiation in colors, styles,
tastes
 Mixed differentiation - characterizes
both horizontal and vertical
differentiation
 For e.g. garments and shoes have an
amazingly rich combination of shapes,
colors, materials, etc..
 Determinants

 raw material
 share of high/low quality ingredients
 engineered design
 production process
 Cost
 Advertising and promotion
TATA MOTORS
LTD
INTRODUCTION & HISTORY

 Founde: 1945

 Founder: JRD TATA

 Headquarters: MUMBAI,INDIA

 Key People: RATAN TATA, CHAIRMAN

History

 Parent: TATA GROUP

 Products: AUTOMOBILES AND ENGINES

 Revenue: 70,398.85 CRORES

(2008-09)

 Net Profit: 1,001.26 CRORES (2008-09)

 EXPANSION

 Tata IndicaV2's is one of the best selling cars in the

history of the Indian automobile industry

 1991 Passenger vehicle market

 Three vehicles:- Tata Estate, Tata Sumo & Tata Safari

 The Indica the first fully indigenous passenger car of

India, introduced in 1998
BRANDS

 JAGUAR XJ
 RANGE ROVER
 TATA NOVUS
 TATA DAEWOO
 TATA NANO
 TATA ACE
TATA DAEWOO COMMERCIALVEHICLE

AIMED TO INCREASE IT PRESENCE WORLD WIDE.

COMPANY IN SOUTH KOREA .

HIGH DOMESTIC EXPOSURE.

2ND LARGEST HEAVY COMMERCIAL VEHICLE IN

SOUTH KOREA .
JAGUARS AND LAND ROVER
 MAJOR PLAYER IN INTERNATIONAL
MARKET

 JAGUAR AND LAND ROVER OPERATIONS

PURCHASED FOR US $ 2 BILLION

 SALE WAS COMPLETED ON 27 JUNE 08

IMPORTANT DEVELOPMENT
TATA NANO
 LAUNCHED IN JAN UARY ,08
 LEAST EXPENSIVE CAR IN THE WORLD
 CONTOVERSY OVER DEVELOPING NANO
 EFFECT ON POLLUTION & GLOBAL
WARMING
 FACTORY IN SANAND IN GUJRAT
 ROLL OUT IN SUMMER,09
TATA ACE
 INDIA’S FIRST MINI TRUCK.
 HUGE SUCEES IN INDIA.
 FIRST CHOICE FOR TRANSPORTER.
 ACE IS TOP SELLER OF TML.
 ACE
HAS BEEN EXPORTED TO SEVERALL
EUROPEAN.
COMPRESED AIR CAR

 MDI OF FRANCE HAS DEVELOPED THE

FIRST PROTYPE CAR NAMED ONE CAT
 MDI REPORTED TO HAVE BACKING OF TATA
 IT IS A FIVE SEAT VEHICLE
TATA GLOBAL OPERATIONS

 INCREASES IT GLOBAL PRESENCE

 IN 2004 IT ACQUIRED THE DAEWOO
COMMERCIAL VEHICEL IN SOUT KOREA
 TODAY TWO THIRD OF HEAVY
COMMERCIAL VEHICLE EXPOPRT BY
SOUTH KOREA
 DEALERSHIP IN 26 COUNTRIES ACROSS 4
CONTINENT
PRODUTS
MARKETING STRATEGIES

 EFFECTIVE ADVERTISEMENT
 Use of some famous stars as their spokesman.
 Successful marketing strategies
Pricing Strategy
 Place
 Maintenance Support
 Advertising
 Personal Selling
 Sales Promotion
 Publicity
 Conclusion

 Successful brand
 TATA MOTORS – India’s largest company in the commercial vehicle
sector.
 The company is the world’s fourth largest truck manufacturer and
second largest bus manufacturer in the world.
 Tata Motors is able to produce more than 4 million different types of
vehicles such as cars, trucks, commercial vehicles, many more since the
company began in 1945.
 The pricing policy of Tata Motors is always appreciated by the public.
 The price of a car can be determined by factors such as market
condition, cost incurred to build a car, profit by company and dealer
profit.
 Tata Motors gives discounts based the company’s profit or from dealer’s
profit at a certain range.
 OU
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