Objectives Of Tata Motor

To study the marketing strategy a) IntroductionOf the New Tata Nano 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 Indias 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, TataMotors 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, WestBengal, but increasingly violent protests forced Tata to pull out October 2008. (See Singur factory pullout below.) 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. CostCuttingfeatures 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 Tata initially targeted the vehicle as "the least expensive productioncar 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 cars development, and Tata faced the choice of: Introducing the car with an artificially low price through government subsidies and taxbreaks 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 biodegradableplastics instead of a full metalbody raising the price of the car option. Modelversions At its launch the Nano was available in three trim levels: The basic Tata Nano Std priced at 123,000 Rupees has no extras; The deluxe Tata Nano CX at 151,000 Rupees has air conditioning;

The deluxe Tata Nano TX at 135,000 Rupees has air conditioning, Yellow colour Taxi Version; The luxury Tata Nano LX at 172,000 Rupees has air conditioning, power windows and central locking The Nano Europa, European version of the Tata Nano has all of the above plus a larger body, Bigger 3-cylinder engine, anti-lock braking system (ABS) and meets European crash standards and emission. The base model will have fixed seats, except for the driver's, which will be adjustable, while the deluxe and luxury models will get air conditioning and body coloured bumpers.

b)Modification in tata sumo New Tata Sumo

The Toyota Qualis and now competes with Chevrolet Tavera. The discontinuation of Qualis to launch the Toyota Innova proved advantageous to Tata Sumo. The Sumo has seen a series of changes in terms of refinement in this decade. It has been the favorite choice for cab owners, as it is rugged and affordable. The Tata Sumo has been enjoying its position in the MUV market since 1994. It had stiff competition with new Sumo Victa has been portrayed as a family lifestyle vehicle, but in fact is a

carryover of the old Sumo, with some cosmetic changes. The Sumo comes in nine Victa variants: CX 10/7 Str, DI CX 7/9/10 Str, DI EX 7/9 Str, DI GX 7/9 Str, DI LX 7/9 Str, EX 10/7Str, GX 7 Str, GX TC 7 Str, and LX 10/7 Str. All variants, except the Victa DI variants, are powered by a 2-litre Inline-4 diesel engine. The GX and GX TC variants get a 2-litre turbocharged diesel engine that generates 89 bhp. The Victa DI variants get a 3-litre turbocharged diesel engine. Refinement, both internal and external, is evident across the variants. Tata's latest three variants under the 'Sumo Grande' category are LX, EX and GX available in 2-seater, 7seater and 8-seater configurations. Sumo Grande boasts of a powerful 2.2-L direct injection common rail (DICOR) engine.

Quick Take

* Fuel Economy Available Engines

9/14 kmpl (city/highway) 2.0L Inline-4, 67 bhp diesel 2.0L Inline-4, 89 bhp turbo diesel 3.0L Inline-4, 69 bhp diesel 2.2L DiCOR In-line 4, 118 bhp diesel

Available Transmissions

5-speed Manual Transmission (MT)

c) New version of Indigo, Indigo Dicor

Dicor Variants The DICOR (common rail diesel) version of Tata Indigo is available in two variants which has already hit the bull's eyes. The beefy & bony structured sedan has the capacity to deliver maximum torque of 140Nm @ 1800 - 3000 rpm. The Indigo Dicor from Tata Motors has been

made apt for Indian roads especially with its driver & co passengers oriented positive attributes such as : Anti-submarine front seats New electronic instrument cluster with engine RPM meter Rear Seat with double folding backrest Video player with MP3: with headrest mounted LCD screens 1.4-litre as rail diesel engine

Indigo LX Dicor Tata Indigo LX Dicor on the other hand features manually operated with chrome strip outer rear view window, black dials with chrome rings & star check as the new pattern for its console&ACfascia. Indigo LS Dicor Tata Indigo LS Dicor features manually operated outer rear view mirror, black dials, & Benz silver as the new pattern for console & AC fascia. It has no mounted LCD screens.

ENGINES

Petrol

1396 cc MPFI Petrol Engine with 32-Bit Microprocessor Max. power - 85 PS @ 5500 rpm Max. torque - 12 Kgm @ 3500 rpm

Diesel

Turbo-charged 1405 cc Indirect Injection Engine with Intercooler Max. Power 70 PS @ 4500 rpm Max. Torque - 13.5 kgm @ 2500 rpm

Dicor

32-bit microprocessor based 1396 cc DICOR(Direct Injection Common Rail) 16-valve engine with Dual Over Head Camshafts and a Variable Geometry Turbocharger(VGT) Max.power-70 PS@4000 rpm Max.torque - 140Nm@1800-3000 rpm

e) TappingofRuralMarkets According to the National Council for Applied Economic Research, or NCAER, rural India accounts for 70% of Indias population, 56% of the national income, 64% of the total expenditure and one-third of the total savings. So, the difficulties faced in cracking these markets pale before the huge potential they offer a company. Of the total sales (of consumer goods), around 55% come from rural India, and going ahead, the contribution is likely to grow. NCAER data suggests that in real terms, at 1999 prices, the size of the rural economy will be about Rs16 trillion in 2012-13 compared with Rs12 trillion in 2007-08. The share of non-farm income will be about two-thirds of the rural economy by 2012-13.

Noticing this huge potential Tata motors now plans to tap the rural market, 60 per cent of which runs on cash. Tata motors ltd. is worki ng on strategies to make inroads into these markets.

Measures for improving marketing procedures

There are so many tools or technique available to the marketers for achieving objective of sales promotion. These tools should be used considering all other factors affecting such as cost, time, competitors, availability of goods etc. These tools are as under

1. Coupons 2. Price-Off 3. Freebies 4. Scratch Cards 5. Lucky Draws 6. Bundling Offer 7. Extra Quantity

Lets have look at each tool

1. Coupons:

Coupon is the oldest and most widely used way of sales promotion. Coupons have been used since 1895. It is mostly used by packaged goods. It is worthwhile to use coupon as a promotion tool because data shows that market for packaged goods increased from 16 billion in 1968 to 310 billion in 1994. To boost up the sales not only manufacturer but retailers personally can also used. A coupon leads to price reductions so as to encourage price sensitive customers. Non users can try a product which may leads to regular sales.

2. Price-off:

A price-off is simply a reduction in the price of the product to increase sales and is very often used when introduction a new product. A reduction in price always increases sales but the use of this technique should be carefully considered in the current market situation.

Price-off is the most preferred sales promotion technique because consumers response very positively to this scheme. Not only that but it also cause large increase in sales volume. Price-off reductions are typically offered tight on the package through specially marked price packs. E.g. Krack Jack offers 30% Price-off.

3. Freebies

Freebies are a popular form of modern marketing and are some of the best things about the internet. The definition of freebies is products or services given away for free at no cost to the consumer. Well thats the definition we came up with. I am a bargain freebie shopper, pretty much going for any free product and informing everyone about it.

At different times, big and small companies often give away prizes and money which is too good to be true. Often its in the pursuit of more customers or a larger fan base and it often works.

4. Scratch Cards

A scratch card (also called a scratch off, scratch ticket, scratcher, scratchie, scratch-it, scratch game, scratch-and-win or instant game) is a small token, usually made of cardboard, where one or more areas contain concealed information: they are covered by a substance that cannot be seen through, but can be scratched off.

5. Bundling Offers

Product bundling is a marketing strategy that involves offering several products for sale as one combined product. This strategy is very common in the software business (for example: bundle a word processor, a spreadsheet, and a database into a single office suite), in the cable television industry (for example, basic cable in the United States generally offers many channels at one price), and in the fast food industry in which multiple items are combined into a complete meal. A bundle of products is sometimes referred to as a package deal or a compilation or an anthology.

Factors Influencing Consumer Oriented sales promotion:

Mainly four factors should be taken into account while determining the sales promotion program.

> Target market > Nature of product > Stage of product life cycle > Budget available for promotion

1. Target Market:

While doing sales promotion, marketer must know who their target market is; otherwise there is no use of all effort because it leads to no where. A target market can be in any of the stages of buying hierarchy i.e. awareness, knowledge, liking, preferences, conviction and purchase. Each stage defines a possible goal of promotion.

2. Nature of the product:

There are various product attributes which influence sales promotional strategy. When the unit price is low the manufacturer as well as the customer has low risk but he can get the benefit of mass marketing. Therefore, mass marketing requires mass sales promotion schemes. Sales promotion scheme differ for products like its durability, perishable goods etc.

3. Stage of product Life Cycle:

Sales promotion strategies are influenced by the life cycle of a product. When a new product introduced, prospective buyers must be informed about its existence and its benefits and middlemen must be convinced to stock it. Later, if a product becomes successful, competition intensifies and more emphasis is placed on sales promotion to increase its sales.

4. Budget Available for Promotion:

The funds available for promotion are the ultimate determinant of the promotional programme. A business with ample funds can make more effective use of sales promotion programme than a firm with limited financial resources. The budget for sales promotion can be prepared by the following methods

Percentage of Sales Fixed funds available for sales promotion Following the competition, and Budgeting by objective.

Sales Promotion from the Consumers point of view

Willingness to buy on sales promotion offer

Sixty per cent of the sample did not show willingness to buy a brand due to promotion while 30% showed willingness and 10% were not sure. This indicates that when 30% showed willingness and 10% consumers who were not sure, these groups might be lured through innovative and lucrative sales promotion offer.

Ability to induce trial

Forty per cent of the respondents had said that sales promotion had the ability to induce trial which reinforces the above inference.

Long-term impact

In order to understand ability of the promotions to increase long-term sales, respondents were asked about continuity of purchase of a brand after the withdrawal of promotion. Eighty per cent of the respondents indicated that they would not continue. But 20% said they would. Thus, it could be inferred that promotions in this category (low involvement products) might encourage trial and brand switching but not long term loyalty.

Preference of Schemes:

Price off was the most preferred type of scheme. Maximum customers ranked price-offs as number one or two.

Perceived Quality:

Majority of respondents had a perception that the quality of the promoted brands remained the same during promotion, while some of them felt that it was inferior than before. It can be inferred that promotions were not leading to negative brand quality perceptions. It is found that some customer strongly preferred to buy their regular brand and said that sales promotion would not weaken their loyalty towards the brand.

Perceptions regarding underlying company motivations

On tapping perceptions regarding underlying company motivations for sales promotion, to increase sales was ranked highest followed by to attract switchers and to sell excess stocks. While providing value to customers and

To reinforce company image were ranked lowest. This indicates that consumers believed that companies were undertaking such activities only for their own benefit and not for the benefit of consumers.

Findings from retailer and consumer perception studies, it is evident that there was a matching of perceptions regarding nature of scheme (price offs as most preferred type of scheme mentioned by consumers and retailers perceptions about consumer preferences). Since retailers observe consumers in store behavior were frequently and directly, their perceptions regarding providing consumer behavior are likely to be accurate. Such inputs from the retailers would be useful to companies.

The retailers had the perception that those schemes which were announced through mass media had better response. This was reinforced by the consumer survey which showed that recall in case of heavily promoted schemes on TV was found to be very high. Retailers prediction of companies motivation for offering sales promotion were matching with the consumer perception regarding the same. Thus both viewed that companies were using sales promotion activities mainly to increase short term sales or encourage switching or selling excess stock and not really to give value benefit or enhance/reinforce brand/company image.

Trade Oriented Sales Promotion

Trade Oriented Sales Promotion aimed to motivate channel member of the company and to encourage them to push companys product. Trade Oriented Sales Promotion includes dealer contest and incentives, trade allowances. Point-of-purchase displays, sales training programs, trade shows, cooperative advertising, and other programs designed to motivate distributors and retailers to carry a product and make an extra effort to push it to their customers

Sales promotion from the retailers point of view:

Perceptions on Scheme Preference

It was found that retailer perceived price offs as a better form of sales promotion activity. Price offs in their opinion had relatively a greater impact compared to any other form of sales promotion activity like Bonus packs, Premium, Contests etc. Retailers preferred price offs the most, then bonus pack, premium, contests, in order of importance.

Perceptions about Buying Roles

Retailers viewed that the person who came to the shop (who may be a maid, son, daughter, daughter-in-law and child) was the decider of a toilet soap brand and not the Income provider (e.g. head of the family). It could be inferred that visibility of information about the sales promotion activity at the point of purchase could result into the purchase of a promoted brand.

Perceptions about their role in decision-making

Retailer had relatively very low influence in affecting choice. It could be inferred that visibility and awareness about the scheme were the critical success factors so that pull could be created.

Perceptions about Response to Sales Promotion Offers

They believed that younger age-groups were more experimental in nature, amenable to trying new brands, and sought/looked for or asked whether there were any) sales promotion schemes running on any toilet soap at the time of purchase.

Perceptions about Communications of Sales Promotion Schemes

Retailers perceived that role of word of mouth and television advertising played an important part in providing information inputs to consumers regarding sales promotion activities.

Variations in Information Flow

Smaller (non-supermarket, small format store) retailers received relatively less support compared to supermarkets in terms of servicing, margins, information about sales promotion activities from the dealers. Many a times small retailers were only informed verbally about sales promotion schemes by the dealer salesmen during the scheduled weekly visits.

Dealer-Retailer Dynamics

At the time of sales promotion activities, dealers had tendency to push unwanted stocks onto the smaller retailers. In fact these retailers preferred to stock variety of brands and wanted payment for shelf and window display to increase traffic into their store. However, supermarkets and big retailers were pampered and given special services and given better margins and better allowances.

Margins

It was found that in sales promotion schemes margins varied from 6 to15% depending of the size of the retail outlet, bargaining power of a retailer, quantity ordered by him etc. Mostly margins were linked to size of the volumes that were ordered.

Perceptions about terms and conditions

Retailers were not found to be happy with sales promotion schemes where their margins were cut on the pretext of just fast movement of inventory of the brand being promoted. Also if additional incentive was offered it was subject to minimum performance requirement.

Nature of POP

Retailers indicated that most of the POP (Point of Purchase) materials were meant for brand advertisement and not for giving information regarding the schemes. Thus it could be inferred that companys follow up was not adequate.

Servicing during duration of Scheme

In stock-out situation during the running of the sales promotion schemes, smaller retailers had to wait for replenishment of stocks till the next scheduled weekly visit by the dealer salesman but big retailers were serviced on telephonic request for replenishment of stocks. This clearly indicated the disparity in treatment.

Problem of left-over

A leftover stock at the end of any scheme was required to be sold by the retailers before they ordered fresh stocks. In case of bonus packs scheme, leftover stock was often dismantled (cut open buy one get one free) and sold them individually as a regular soap. This approach of the company leads to misappropriation which in turn could result in adverse brand image.

Gifts for Retailer motivation

Companies at times were rewarding retailers by giving free gifts like thermos flasks or clocks if they sold more than certain quantity in a given period. Companies were making a half-hearted effort to motivate retailers.

Perceptions about mass media announcements

Retailers viewed that whenever sales promotion scheme was announced on TV, it created pull and they were more than willing to stock such brands. For example Medimix and Dettol contest was not advertised on TV, hence there was very little awareness leading to unsold stock till 6 months. While Lux Gold Star which was heavily promoted on T.V. is recalled even today.

Post Promotion Behavior

Retailers observed that in most cases sales promotion scheme on a brand might encourage a buyer to switch a brand temporarily but he would revert back to original brand after promotion.

Handling Problems

Many a times retailers had to handle various sales promotion offers simultaneously in a category and also across categories and there was no formal communication planning either from the dealer or the company. Remembering each offer and handling was a problem especially for a small retailer which was often an as one-man show.

MARKET OBJECTIVES

National growth The tata nano is a four passenger city car built by tata motorsaimed primarily at Indian market INTERNATIONAL GROWTH Tata Motor's Nanao car is ready to start its journey on the globalroad as it displayed version of the hatchback for worldwidemarketplace. This new version was introduced at 79th GenevaMotor Show . This international version is more powerful and stronger than itsIndian counterpart. It is 0.19 meters longer in length and is 0.08meters wider in comparison of its Indian part. The company isaimed towards selling of Nano car in Europe for 5000 euros($6,316)). ETHICAL OBJECTIVES Tata group had never compromised on ethics, it last year editedwhistle blower policy for the benefits of the company & society The Company believes in the conduct of the affairs of itsconstituents in a fair and transparent manner by adopting higheststandards of professionalism, honesty, integrity and ethicalbehavior. MARKET SHARE & future planning Tata said that the initial target production volume would be 250,000cars per annum on two shifts, expandable to 350,000 per annum onthree shifts. In earlier media interviews, Ratan Tata talked about a one millionproduction target by 2010 Consumer focus

 Die Welt

reports that the car conforms with environmental protection,and will have the lowest emissions in India.
Product focus Model versions The basic Tata Nano Std priced at 123,000Rupeeshas no extras; The deluxe Tata Nano CX at 151,000 Rupees has air conditioning; The luxury Tata Nano LX at 172,000 Rupees has air conditioning, powerwindows, fabric seats and central locking Tata Motorswill offer a version of the Nano with these safety-features,including an airbag system in its electric version.The Nano has an allsheet-metal body made fromJapaneseandKoreansteel, [110] with safetyfeatures such as crumple zones, intrusion-resistant doors, seat-belts,strong seats and anchorages, and the rear tailgate glass bonded to thebody. Tires are tubeless Introducing the car with an artificially low price through governmentsubsidies and tax-breaks Forgoing profit on the car. Social responsibility Green Matters: Tata Motors, a Company that cares about thefuture...

T a t a M o t o r s c o n c e r n i s m a n i f e s t e d b y a d u a l a p p r o a c h - 1) Reduction of environmental pollution and regular pollution control drives2) Restoration of ecological balance. Reducing pollution Tata Motors has been at the forefront of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. It is the first Indian Companyto introduce vehicles with Euro norms well ahead of the mandated dates. Restoring Ecological Balance: Tata Motors has set up effluent treatment facilities in its plants,to avoid release of polluted water into the ecosystem. In Pune,the treated water is conserved in lakes attracting variousspecies of birds from around the world thus turning the spaceinto a green belt.Tata Motors is committed in letter and spirit to Corporate SocialResponsibility. It is a signatory to the United Nations GlobalCompact, and is engaged in community and social initiatives onlabour and environment standards in compliance with theprinciples of the Global Compact.Some Other social responsibilities areCommunity DevelopmentHealth & SanitationEmployment GenerationCommunity Centres Revenue maximization Tata initially targeted the vehicle as "the least expensiveproduction carin the worldaiming for a starting price of 100,000 rupees or approximately US$2000 Overcome competition Tata initially targeted the vehicle as "the least expensive production car in the world [11] aiming for a starting price of 100,000 rupees or approximately US$2000Rival car makers includingBajaj Auto, Fiat,General Motors,Ford Motor, Hyundaiand Toyota Motor have all expressed interest in building a small car that is affordable to moremiddle-class consumers inemerging markets. The bulk of demand there is for small cars because people are much more sensitive tofuel prices. [116] Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids, andsome environmentalists argue getting prices down on these technologies is where effortsshould be concentrated. [116] Inexpensive and eco-friendly electric-cars likeTara Tiny,Oreva Super (both reportedly even cheaper than Tata Nano) andR V EA [117] pose evenmore significant danger to Nano. There are also rumors of Maruti Suzukiintroducing alower priced version of Altoto counter Tata Nan