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A P ROJECT R EPORT O N

MARKETING S TRATEG
EGY OF T ATA
TA M OTORS
TO

BY D EEPAK
EEPAK P UNJABI

S. Y.B.B.A ROLL N O. 17

TABLE OF CONTENTS

1. Executive Summary

2. Tata Group Profile

a. History
b. Promoter Companies
c. Group holding structure
d. Company heads
e. Mergers and Acquisitions

3. Tata Motors – Company Profile

(H.R., National Network, International Operations, R & D,

Manufacturing, Management)

4. Marketing Mix – Product, Price, Promotion, Place

5. Before Sales & After Sales Services

6. Products of Tata Motors

7. Findings and Conclusions

8. Problems and Suggestions

9. Bibliography

10. Annexures

from Bytco College. . Mr.A. This project was undertaken as a part of academic curriculum according to the University rule.B. PLACE : Nashik SIGN : ________________ NAME : DEEPAK PUNJABI. norms and by no commercial interests and motives. student of S. declare that this project entitled ‘The Marketing Strategy of Tata Motors’ was carried out by me in the partial fulfillment of the course B. the undersigned. under University of Pune during 2007-08. DECLARATION I.A. Deepak G.B.B. Punjabi.Y.

Bytco College. ACKNOWLEDGEMENT I would like to express my boundless gratitude to Mr. Nasik and Pune University who gave me an opportunity to reap the experience of working in the esteemed organization. J. Sterling Motors.A. N. including my friends and seniors whom I might have forgotten to mention but nevertheless have played an important role and were an integral part of my research to make it a memorable one. Nasik for extending his kind co-operation and providing information regarding the Marketing Mix adopted by Tata Motors. Desai. M. I would also like to thank Prof.C. Vikrant Aher. who provided his sound guidance and extended his support to prepare this project report.D. Last but not the least. my thanks to J.Y. I would like to express my thanks to all other innumerable people. Deepak Punjabi S.C.B. Sales Manager.D. Bytco College.B. Nasik .

I visited Sterling Motors. Purpose : The purpose of preparing this project was to study the marketing techniques adopted by Tata Motors and I have tried to include information not only on the marketing strategy of Tata Motors but also on the profile of entire Tata Group. The objective of adopting intensive and diverse marketing strategies is 1. he provided me with the product brochures which I have attached herewith. To increase the sales. The highlights of this study are :  To Understand the techniques of Advertisement. Nasik. For the purpose of the project. the Sales Manager. To ensure long-term establishment. he was unable to provide me with a letter certifying my visit to the dealership as it was against the Co. 3. Organizations are spending millions of rupees on marketing of their products to ensure perpetual existence in the market. M.EXECUTIVE SUMMARY Automotive industry is one of the major businesses in today’s world and to survive the intense competition in a market like that of India. which is a dealership of Tata Motors in Nasik and met Mr. sales promotion and sales adopted by the company. an organisation has to adopt and effective marketing strategy. . To maximize the profits. policy. To capitalize a major market share. It was great pleasure studying various products of Tata Motors and their marketing techniques and it has helped me to know the innovative marketing trends in Automobile Industry. However. Nevertheless. My research emphasizes on the marketing strategy used by Tata Motors.N.  To Understand the Marketing Mix adopted by the Co. Desai. He provided me information about the marketing mix adopted by Tata Motors and the before and after sales services provided. 4.  To Understand the Before and After Sales Services provided. 2.

and always work for the benefit of the communities we serve. show respect. and best in our value system and ethics. compassion and humanity for our colleagues and customers around the world. since the first rolled out in 1954. Five core values The Tata Group has always sought to be a value-driven organisation.000 employees are guided by the vision to be "best in the manner in which we operate. Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer. 32. It is the leader by far in commercial vehicles in each segment. communities and environments in which we work. Excellence: We must constantly strive to achieve the highest possible standards in our day-to-day work and in the quality of the goods and services we provide. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. Understanding: We must be caring. HUMAN RESOURCES : The company's 22. understanding and mutual cooperation. and the world's second largest medium and heavy bus manufacturer. The company's manufacturing base is spread across India .426 crores (USD 7. Tata Motors' presence indeed cuts across the length and breadth of India. with revenues of Rs. with honesty and transparency. and the second largest in the passenger vehicles market with winning products in the compact. The company has won several awards recognising its training programmes. always ensuring that what comes from the people goes back to the people many times over. sensitive to the countries. best in the products we deliver. These values continue to direct the Group's growth and businesses. NATIONAL NETWORK : Established in 1945. Everything we do must stand the test of public scrutiny. and in the north in Lucknow . Responsibility: We must continue to be responsible." Tata Motors helps its employees realize their potential through innovative HR practices. Over 4 million Tata vehicles ply on Indian roads.2 billion) in 2006-07.TATA MOTORS – Profile Tata Motors Limited is India's largest automobile company. All-round potential development and performance improvement is ensured by regular in-house and external training. The five core Tata values underpinning the way we do business are: Integrity: We must conduct our business fairly.Jamshedpur (Jharkhand) in the east. midsize car and utility vehicle segments. Pune (Maharashtra) in the west. building strong relationships based on tolerance.

A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation- wide dealership. The company also has a strong auto finance operation.000 touch points.(Uttar Pradesh) and Pantnagar (Uttarakhand). supporting customers to purchase Tata Motors vehicles. services and spare parts network comprises over 2. sales. TML Financial Services Limited. .

Africa. In 2005. In 2006. while also exporting these products to several international markets. the company's objective is to expand its international business. The R&D establishment includes a team of 1400 scientists and engineers. Australia. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). established through exports since 1961. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra. Hispano's presence is being expanded in other markets. The company's Engineering Research Centre was established in 1966. In 2007.INTERNATIONAL OPERATIONS : Tata Motors. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. While currently about 18% of its revenues are from international business. it acquired the Daewoo Commercial Vehicles Company. These linkages will further extend Tata Motors' international footprint. RESEARCH & DEVELOPMENT : The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs. the Middle East. Bangladesh. India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets. Kenya. In 2004. . Argentina. Russia and Senegal. has also emerged as an international automobile company. South East Asia and South Asia. and the ability to translate them into customer-desired offerings through leading edge R&D. with an option to acquire the remaining stake as well. The company's commercial and passenger vehicles are already being marketed in several countries in Europe. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. Ukraine. The pick-up will be sold in South and Central America and select European markets. it formed a joint venture with the Brazil-based Marcopolo. Tata Motors already distributes and markets Fiat branded cars in India. both through organic and inorganic growth routes. a reputed Spanish bus and coach manufacturer. Korea's second largest truck maker. It has assembly operations in Malaysia. Tata Motors acquired a 21% stake in Hispano Carrocera. Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba. In 2006.

high-precision tooling and plastic and electronic components for automotive and computer applications. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. the Tata Indica. in 2005. In accordance with . supporting Tata Motors' skill sets. The ERC has enabled pioneering technologies and products. among whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration. machine tools and factory automation solutions. and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. Tata Motors is committed in letter and spirit to Corporate Social Responsibility. by launching the Tata Ace. India’s first indigenously developed mini-truck. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999. It is a signatory to the United Nations Global Compact. TMETC is engaged in design engineering and development of products. Tata Indica became India's largest selling car in its segment. Jamshedpur and Lucknow. the National Award for Successful Commercialisation of Indigenous Technology by an Industrial Concern in 2000. The years to come will see the introduction of several other innovative vehicles. The NPI process helped Tata Motors create a new segment. in 1998. India's first Sports Utility Vehicle and. The pace of new product development has quickened through an organisation-wide structured New Product Introduction (NPI) process. has received several awards from the Government of India. It was Tata Motors. which developed the first indigenously developed Light Commercial Vehicle. The process with its formal structure for introducing new vehicles in the market brings in greater discipline in project execution. all rooted in emerging customer needs. automotive vehicle components manufacturing and supply chain activities. Through its subsidiaries. construction equipment manufacturing. Besides product development. and the CSIR Diamond Jubilee Technology Award in 2004. The ERC in Pune.and has facilities in Pune. True to the tradition of the Tata Group. and automotive retailing and service operations. the company is engaged in engineering and automotive solutions. R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. Within two years of launch. India's first fully indigenous passenger car. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain.

and the Novus. With the foundation of its rich heritage. and was in the market for exclusively financing Tata Motors vehicles. Cab & Cowl Factories. It consists of 4 major divisions . Pune in the West and Lucknow in the North. the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. This company was a virtual entity. it plays an active role in community development. assembly and quality control. Engine Factory. Jamshedpur: Established in1945. Manufacturing Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. It was established in 1966 and has a Production . Tata Motors today is etching a refulgent future.Truck Factory. manufacturing. Every stage of product evolution-design. came into existence in June 2003. is carried out meticulously. Pimpri (800 acres) and Chinchwad (130 acres). with both the divisions maintaining their legal identity. serving rural communities adjacent to its manufacturing locations. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Our manufacturing plants are situated at Jamshedpur in the East. the auto financing arm for Tata Motors.this. Tata Motorfinance : Tata Motorfinance (TMF). jointly formed by BHPC (Bureau for Hire Purchase and Credit) of Tata Motors and the asset financing arm of Tata Finance. Pune: The Pune unit is spread over 2 geographical regions. development. This was a common front-end. Subsequently Tata Finance was merged with Tata Motors and in April 2005 TMF became a division of Tata Motors.

which has one of the most versatile tool making facilities in the Indian sub-continent. . at Pant Nagar in Uttarakhand. . The plant will begin commercial production during the course of the year.Engineering Division. Uttarakhand The company has set up a plant for its mini-truck. Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. Ace.

J J Irani Mr. Shyam Mani Vice President (Sales and Marketing) CVBU Mr. R Gopalakrishnan Mr. Ratan N Tata (Chairman) Mr. P M Telang Senior Management Mr. Ravi Kant Mr. Zackria Sait Vice President (Technical Services) Mr. S Krishnan Vice President (Commercial-PCBU) Mr. A M Mankad Head (Car Plant) Mr. R S Thakur Vice President (Finance) Mr. V R Mehta Mr. N A Soonawala Dr. S B Head (Jamshedpur Plant) Borwankar Mr. Nusli N Wadia Mr. R A Mashelkar Mr. Praveen P Executive Director (Finance and Corporate Affairs) Kadle Mr.Management Board of Directors Mr. P Y Gurav Taxation) Dr. H K Sethna Company Secretary . Rajiv Dube President (Passenger Cars) Mr. S M Palia Dr. P P Kadle Mr. Ravi Kant Managing Director Mr. M V Rajarao Vice President (Manufacturing . C Vice-President (Chairman's Office) Ramakrishnan Mr. K C Girotra Vice President (Lucknow Works & FBV) Mr. P M Telang Executive Director (Commercial Vehicles) Mr. S J Tambe Vice President (Human Resource) Mr.Pune) Vice President (Corporate Finance-Accounts and Mr.

bus LP 709 E Turbo Bus LPO 1510 CGS bus (CNG LP / LPO 1510 LP / LPO 1512 TC Turbo bus) Bus LP / LPO 1512 TC Turbo LPO 1610 TC RE Semi LPO 1616 TC Luxury Bus Low Floor Bharat Stage .Defence .II Bus LP 1109 Bharat Stage II Showcase .Showcase – Commercial Vehicles .II Bus Bharat Stage .bus LP 407 Turbo Mini.Buses SFC 407 Turbo Mini.

Tata 407 (4 x 4) Soft Top Troop Tata 407 / (4 x2) Hard Top Tata LPTA 713 TC (4 x4) Carrier Troop Carrier Tata LPT 709 E Hard Top Troop Tata SD 1015 TC (4 x4) Tata LPTA 1615 TC (4 x 4) Carrier Tata LPTA 1621 TC (6 x6) Tata LPTA 1615 TC (4 x2) Showcase .ICV LPT 1109 Turbo Truck LP 1109 Turbo Truck Showcase – LCV1 TL 4x4 Tata SFC 410 EX Tata LPT 712 EX .

Single cab Tata 207 DI . Tata 207 DI EX.Tractor Trailers LPS 3015 TC 4x2 BS2 LPS 3516 TC 4x2 BS2 LPS 4018 TC 4x2 BS2 Showcase .Rigid Trucks .Single Tata 207 DI .Tippers SK 1613 697 TCIC 4x2 SK 1613 TC 4x2 BS2 LPK 1613 697 TCIC 4x2 BS2 BS2 Showcase .Crew cab cab SFC 407 EX Turbo SFC 407 Turbo Truck LPT 709 E Turbo Container truck LPT 407 Turbo Truck SFC 709 E Aerial lift turbo Truck Showcase .

Applications 2516 TRANSIT MIXER 2515 BULKER LPT 2515/ LPT 2518 LOAD BODY 3516 BULKER 4018 BULKER SEMI TRAILERS Tata Ace Tata Novus . SE 1613 697 TCIC 4x2 SE 1613 TC 4x2 BS2 LPT 1613 697 TCIC 4x2 LPT 1613 TC 4x2 BS2 LPO 1512 TC 4x2 BS2 LPT 2515 697 TCIC 6x2 Truck Chassis BS2 LPT 2515 TC 6x2 BS2 LPT 2518 6x2 Showcase .

Tata Magic Tata Winger .

g. known as the brand image. provided at all places to maximize the sale of one’s product. 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. The principal marketing functions involve market research and product development. Innovations : The various motives behind buying an automobile are Need. and distributed to consumers.Marketing Mix : Marketing is the process by which a product or service originates and is then priced. Quality) : a. But an even more important function of advertising is to create an image that consumers associate with a product. Here. who desire more at less price. One has to consider promotion that is balanced with a suitable product available at a reasonable price. The brand image goes far beyond the functional characteristics of the product. performance. Prestige. MARKETING MIX PRODUCT PRICE PROMOTION PLACE Brand Pricing Strategy Personal Selling Channels of Distributions Packaging Pricing & Quality Advertising Physical Distribution Innovations Price & Alterations Public Relations Wholesaler & Retailers Quality Discounts 1. Tata Motors have been successful in creating and maintaining a professional brand image. and testing. This experience has helped them to develop products which fulfill the expectations of Indian consumers. class. c. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers. Packaging. The products of Tata Motors have many special characteristics to them. All of these meanings have been added to the product by advertising. Packaging : A vehicle cannot have a material packaging. but when consumers think of it. they not only think of its features. Fashion. . packaging refers to and effective assembly of features. design. b. Tata Safari Dicor has ‘Reverse Guide System’ which includes a weather-proof camera to help the driver while reversing the vehicle. The R & D Department continuously strives to bring new innovations in their product. PRODUCT (Brand. It is the business activity of presenting products or services in such a way as to make them desirable. Innovations. Jealousy and Novelty. Tata Motors provide many innovative features to suit the target customers and the product. E. Brand : Advertising is often used to make consumers aware of a product’s special low price or its benefits. but they may also associate it with quality. promoted. Comfort.

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.d. .

The various determinants of price are i. Pricing Strategy : The prices are fixed keeping in mind a number of factors. develops. Market Condition ii. if desired by the customer.V. help the dealer to capitalize on the market. Alterations. prices have to be at par with the prices of the competitors. PROMOTION (Personal Selling. The various media used for advertising are T. Newspapers. Personal Selling : There is minimal personal selling involved. may compensate the dealer for the discounts allowed to a certain extent. If there is an alteration which affects the performance of the engine. or an organization.2.. extra product. 3. Advertising. However. takes serious measures to maintain good public relations. c. Any further discounts made from the profits of the dealer. prizes. Desai. or gifts. Dealer Profit b. Alterations : The Company does not allow any alterations to any of the features of the product. Advertising : Advertising is a form of commercial mass communication designed to promote the sale of a product or service. d. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. However. Profit percentage desired by the Co. Discounts) a. The Co. and carries out policies and programs to influence public opinion or public reaction about an idea. The dealer does play any role in the advertising. Tata Motors give a relative price advantage as compares to its competitors. conducts intensive sales promotion during festivals such as festive discounts during Diwali. Hoardings. a product. follows business . b. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising and personal selling. there may be alterations in the accessories. Sales Promotion. The Co. c. Internet etc. The dealer conducts point-of-purchase displays to advertise the products. The advertisements done by the Co. The Co. Public Relations : Public Relations is a management function that creates. Discounts : Discounts are decided by the Co. Tata Motors is responsible for the advertising of its products. Costs incurred iii. every month. Magazines. iv. then the warranty becomes void. Public Relations) a. As told by Mr. the Co. PRICE (Pricing Strategy. Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates.

ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires .

000 touch points. bulk quantities of vehicles are ordered by a Govt. distribution and billing of these are looked after by the Co. if there is a single dealership appointed. in some cases. then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept.4. The nation-wide dealership. deals in commercial and passenger vehicles. Channels of Distribution : In case of vehicles. Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market. PLACE (Channels of Distribution. . The dealers purchase products from the Co. From the plant. Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles. the finished product is transported to the dealerships. respectively. or a private company. and the dealer gets a profit within these prices. Dept. services and spare parts network comprises over 2. However. dealership method of distribution and sales is generally adopted. at a negotiated price. there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. As the Co. The sales. Physical Distribution) a. Tata Motors have also adopted dealership method of distribution of its products. to the Govt. b. Sometimes. The MRP is fixed by the Co. sales. itself. Physical Distribution : The commercial vehicles are manufactured at Jamshedpur.

iii. Test drive ii. Warranty for vehicles – 18 months and unlimited kilometers. brochures etc. To explain the legal formalities to be complied with.000 km OR 24 months Fourth Service . iii. No. The various sales services provided by Tata Motors are as follows : I) BEFORE SALES SERVICES i. Providing information.30. pamphlets. On road service : The Co.10. The provision for these services assures the buyer of a good product and good service. where the customer can submit his query and the nearest dealer will approach to fix the problem.SALES SERVICES : A Consumer desires a no.000 km OR 36 months ii.000 km OR 12 months Third Service . After Sales and Service follow-ups.20. The Co. . demo.1000-1500 km OR 1 month Second Service . has a nationwide toll-free number : 1800-225582. which helps the customer to select an appropriate vehicle as per his need and requirement. provides for On-road service in case of a breakdown. of services before and after the purchase of the product. iv. II) AFTER SALES SERVICES i. of free Services – 4 First Service .

better service and competitive rates. the Co. in mid-size segment it has only Indica. The competitors have appointed brand ambassadors to capitalize on the market e. manufactures good products and has prospective bright future. Zen Estilo and SX4. in SUV it has only Safari. has a sound capital base and latest R & D tools which gives it a potential to overcome the competition from Mahindra. It can learn from its competitor Maruti Suzuki which has succeeded in bringing innovative designs with Swift. The Co. The products have good features. Introduction of Toyota Qualis effected the market share of Tata Sumo. the designs are not quite attractive. have good demand in the market due to which. 3. Maruti Suzuki and Hyundai in the near future. But it fails to give a variety in a particular segment i. Despite good products. enjoys good turnover. The Co. succeeded in capturing a good market share in many of its product segments. It can appoint a brand ambassador or take up an aggressive advertisement campaign to influence the prospective customers. 2. The Co. focuses mainly on the commercial vehicles and has not succeeded in bringing innovations in its passenger vehicles. However. has not succeeded in retaining its market share. the Co. The Co. It should bring more models in its segments to give the customer a choice. However. However.g. should make efforts to retain and expand its acquired market share. it could not retain the market share with introduction of new vehicles of competitors.e. FINDINGS AND CONCLUSIONS The Co. has a good R & D and other resources. there is scope for improvement in marketing of its products and product development. Amir Khan for Toyota Innova. PROBLEMS AND SUGGESTIONS 1. the Co. does not have an aggressive advertisement strategy. The products of the Co. 4. But the Co. . However. Shah Rukh Khan for Hyundai Santro and Saif Ali Khan for Chevrolet.

BIBLIOGRAPHY www.com Microsoft Encarta Encyclopedia Books Referred .tatamotors.com www.Marketing Management by Philip Kotler .tata.