Automobile Marketing in India

The competitive nature of the automobile industry has prompted the companies to take up
new and innovative marketing strategies to thwart the competition. The B segment of cars is
the segment which sees maximum competition as the consumer has a number of models to
choose from and it's the volumes which drive the margins.

All the companies as a part of their marketing strategy offers a range of vehicles in all the
segment to make sure that the customer is driving one of their vehicles only.

Advertisements on the Audio visual medium are a rage as it gives the car makers an
opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it
comes to the finer prints of the cars, print and online media comes to the rescue.

The online medium offers a greater flexibility to the car companies since they come with a lot
of interactive features like demonstrating the interiors of the car with its salient features.

The print medium on the other hand provides an opportunity to the car makers to explain the
function of a car in detail.

Celebrity endorsements and testimonial advertisements have come a long way and they are
also doing their bit to sell the cars. Super star Shahrukh Khan has been associated with
Hyundai Motor Company for a long time and he comes regularly on television to promote the
Santro car. Similarly Ford has roped in Junior Bachan for the promotion of the latest offering
from the company Ford Fiesta. On a similar note Saif Ali Khan and Rani Mukherjee is shown
chasing each other with a Chevrolet aveo.

Aamir Khan who is considered to be one of the most talented actors in the industry is
frequently seen changing roles on screen to promote the Toyota Innova, a car which is
generations ahead of its predecessor Toyota Qualis.

Cricketers haven't been left behind in the race of promoting cars; Fiat Palio had received a
great thrust when the promotion of the car was taken up by the batting maestro Sachin
Tendulkar.In addition to the publicity and advertisement which is done by the companies
there are certain innovative strategies which are taken up by the companies to beat the
competition from time to time.
Marketing strategies of TATA motors is one of the most successful marketing strategies in
automobile industry. By looking at the SWOT analysis of Tata Motors, you will know why
Tata Motors Company is able to produce more than 4 million different types of vehicles such
as cars, trucks, commercial vehicles, 4×4…etc since the company began in 1945.
Meanwhile, Tata Motors Limited has also become the largest automobile producer in India
market.

Marketing strategies of Tata motors

What makes the marketing strategy so successful?

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. (See also Ford
Motor Company SWOT analysis)

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.

Marketing strategies of Tata motors

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.