TATA MOTORS LIMITED

The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the New York Stock Exchange in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, With manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India. Tata motor's passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2003-2007, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2007 from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2008 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called "A" share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs.

10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle "The Ford Motor Company's". It is also in talks with private equity funds to offload 25% of stake in each of the following 6 unlisted group units, they are Tata Daewoo commercial vehicle company, HV transmissions, Tata motors finance, Tata technologies and TELCO construction equipment, the sales of the stakes would possible conclude by June 2009, helping it to raise further funds for this acquisition, earlier in July it sold 24% stake in an Auto component unit to a group firm and booked a profit of Rs. 110 crores, it also sold 10 million shares or 1.36% of Tata steel for RS. 486 crores to Tata Sons, the holding company of whole Tata group firms. "The Company aims to monetize a part of its funds through a phased divestment of certain investments preferably as inter-group sales wherever possible at current market prices in the coming six to eight months," the money that will be released from these investments will become a part of the capital to be lifted for repayment of the bridging loan taken for the Jaguar- Land Rover acquisition. Taken in March 2008" (Tata Motors Profile) It took a 15 month bridge loan of 3 billion in March from a consortium of banks to finance the JLR accusation and its expansion plans Since the rights issue was announced on 28th may its share value has fallen more than 30% and fell by 1.82% to Rs. 429.85 on BSE, even though the bench mark index gained 3.8% to end at 15, 049.86 points.

Product portfolio (H1 FY08)

M & HCV LCV UV Cars

The Analysts say that, this is a strategic move taken by Tata Motors because it is allowing the company to make a lot of profit even when the market is in the financial pressure allows Tata sons to raise its wager in group companies.

Joint venture agreement signed with M/s Daimler . Joint venture agreement signed with Tata Holset Ltd. Launch of Tata Sumo . Launch of the Tata Safari EX 3. 2001:1. 1948:-Steam road roller introduced in collaboration with Marshall Sons (UK). Some significant milestones in the company's journey towards excellence and leadership.2nd generation Indica. The first vehicle rolled out within 6 months of the contract. 2002:-1.the multi utility vehicle 2. HISTORY OF TATA MOTORS It has been a long and accelerated journey for Tata Motors. Indica V2 becomes India's number one car in its segment. Inc.. West Germany.. 2.Benz for manufacture of Mercedes Benz passenger cars in India. for manufacture of medium commercial vehicles. 1994:1. for the manufacture of high horsepower and emission friendly diesel engines. was established to manufacture Locomotives and other engineering products. 1945:-Tata Engineering and Locomotive Co. 2. Indica V2 launched . India's leading automobile manufacturer..Launch of the Tata Indigo. UK for manufacturing Turbochargers to be used on Cummins engines. 3. 1959:-Research and Development Centre set up at Jamshedpur 1985:-First hydraulic excavator produced with Hitachi collaboration 1993:-Joint venture agreement signed with Cummins Engine Co.Unveiling of the Tata Sedan at Auto Expo 2002. 1954:-Collaboration with Daimler Benz AG.If the company will follow the above mentioned trends then possibly it can raise its finances in a low liquidity and high interest rate set-up. Ltd.Benz / Mercedes . .

3. Tata Motors has operations in the UK. 00. J. Tata Motors and Daewoo Commercial Vehicle Co. Ltd. Launch of the Tata Safari Limited Edition. 2.5 billion in 2008-09.Tata Motors is India's largest automobile company. Tata Engineering becomes Tata Motors Limited.000. with standalone revenues of US$ 5. Tata Motors completes acquisition of Daewoo Commercial Vehicle Company 5. R. Through subsidiaries and associate companies. India's first indigenously developed sub-one ton mini truck. Tata Motors unveils new product range at Auto Expo '04. was launched in May 2005 2006:. D. . 2008:. Among them is Jaguar Land Rover. The super mini was unveiled during the Auto Expo 2008 exhibition in Pragati Maidan. 3. The Tata Indigo Station Wagon unveiled at the Geneva Motor Show. 2004:1. South Korea. Tata Engineering signed a product agreement with MG Rover of the UK 2003:1.Tata Motors reached an agreement with Ford to purchase their Jaguar and Land Rover operation for US$ 21 billion. sign investment agreement 3. New Delhi 2009:. the business comprising the two iconic British brands. Tata Motors lists on the NYSE 2005:.Tata Motors acquired 21% of Aragonese Hispano Carrocera sensing an opportunity in fully built bus segment. Completed on 2nd June Tata Motors Launches the least expensive production car in the world TATA NANO at Rs 1. Indigo Advent unveiled at Geneva Motor Show 4. 2. On 29th July. Tata Ace.Tata Motors has formed Joint Ventures with Marco polo in Brazil and introduce low floor busses in Indian market. Tata's birth anniversary. Thailand and Spain.

It is also the world's fourth largest truck manufacturer and the second largest bus manufacturer. Tata cars. Tata Motors is the country's market leader in commercial vehicles and among the top three in passenger vehicles. Africa.It also has an industrial joint venture with Fiat in India. South Asia. . buses and trucks are being marketed in several countries in Europe. With over 4 million Tata vehicles plying in India. the Middle East. South East Asia and South America.

South American and African countries. Autoline was producing 300 load bodies per day for Tata Motors. The company plans to launch the new pick-up model in India. A pick-up variant of Tata Sumo was also launched under the program 'Global Pick-Up'. Tata Motors launched several concept models and future designs of existing models. Southeast Asia.000th Ace in August 2008.IMPORTANT GROWTH OF TATA MOTORS In 2005 & 06 Tata Ace.6 percent to 28. Europe. It also formed joint ventures with various local companies in several countries to assemble Tata cars. By October 2005. In 2007 In 2007. The Ace was built with a load body produced by Autoline Industries. Tata Ace has also been exported to several European. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. Show Bologna which would be assembled in Thailand and Argentina. Tata Motors launched a re-designed version of Tata Xenon TL during Motor.00. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. within 4 years since its introduction. South Africa. TML sold the 2. India's first indigenously developed sub-one ton mini-truck. Ace is still one of the number makers for TML. was launched in May 2005. Turkey and Saudi ArabiaTata Motors also unveiled newer model of Tata Indigo and Tata Elegante . Electric-versions of Tata Ace are sold through Chrysler's Global Electric Motorcars division. LCV sales of Tata Motors had grown by 36.537 units due to the rising demand for Ace.By 2005.

but later Tata Motors decided to work with Iveco as Daewoo's design was not in sync with the needs of sophisticated European customers. In 2007. In 2008 COMPRESSED AIR CAR Motor Development International of Luxembourg has developed the world's first prototype of a compressed air car. Tata Motors also formed a joint venture with Fiat and gained access to Fiat's diesel engine technology. in which Tata Motors will hold a 70% stake. The company has formed a joint venture with Thailand's Thonburi Company. named OneCAT. MDI owner Guy Negre was reported to have "the backing of Tata". Tata Motors is looking to extend its relationship with Fiat and Iveco to other segments like the 'Global Pick-Up' program. In 2008 MDI planned to also design a gas station compressor. The project was initially collaboration between Tata Motors and its subsidiary Tata Daewoo Commercial Vehicles. an independent auto assembler.concept-car during the Geneva Auto Show. There are no gasoline costs and no fossil fuel emissions from the vehicle when run . which would fill the tanks in 3 minutes. The launch of the 'Global Pick-Up' will mark the entry of the company into developed markets like Europe and the United States. It has air tanks that can be filled in 4 hours by plugging the car into a standard electrical plug.

93 M. With full tanks it will run at 100 km/h (62 mph) for 90 kilometers (56 mi) range in urban cycle. . The company has indicated that the electric Indica would be launched locally in India in about 2010. without disclosing the price.1 cu ft) trunk. which specialises in the development of innovative solutions for electric vehicles. has bought a 50. It is actually a dual fuel car but it is more efficient than any present Hybrid cars. but "the compressed air driving the pistons can be boosted by a fuel burner". Tata Motors' UK subsidiary. IN 2009 AND ONWARDS Electric vehicles Tata Motors unveiled the electric versions of passenger car Tata Indica and commercial vehicle Tata Ace. The vehicle would be launched in Norway in 2009. OneCAT is a five seat vehicle with a 200-litre (7.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1. Tata Motors European Technical Centre. Both run on lithium batteries.in town. and plans to launch the electric Indica hatchback in Europe next year.

a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. These models were jointly developed with its subsidiaries Tata Daewoo and Hispano Carrocera. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2004. Tata Motors has operations in the UK. Lanchester and Rover. Indonesia and Eastern Europe. Though Tata is present in many counties it has only managed to create a large consumer base in the Indian Subcontinent namely India. Among them is Jaguar Land Rover. the SAARC countries and the Middle-East by the end of 2009. An Indian cabinet panel will soon consider a new automobile policy that aims to set fresh investment guidelines for foreign firms wishing to manufacture vehicles in the country. They will debut in South Korea.GLOBAL OPERATIONS Tata Motors has been aggressively acquiring foreign brands to increase its global presence. Mere car assembling operations were not welcomed. It also forced them to take on export obligations to fund their auto part imports and required them to submit to a schedule for increasing the share of locally made parts in their cars. Ukraine. giving it controlling rights of the company. Bangladesh. Bhutan. it continued its expansion through the introduction of new products into the market range of buses (Starbus & Globus) as well as trucks (Novus). Hispano's presence is being expanded in other markets. The Government of India announced an automobile policy in December 1997. Tata Motors acquired a 21% stake in Hispano Carrocera. Spain and South Africa. Bangladesh. South Africa. a reputed Spanish bus and coach manufacturer. South Korea. Russia and Senegal. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. while also exporting these products to several international markets. Sri Lanka and Nepal and has a growing consumer base in Italy. Thailand. South Korea's second largest truck maker. Tata Motors has expanded its production and assembly operations to several other countries including South Korea. In 2006. Investments in making auto parts by a foreign vehicle maker will also be considered a part of the minimum foreign investment . The policy required majority-owned subsidiaries of foreign car firms to invest at least US$50 million in equity if they wished to set up manufacturing projects in India. Tata Motors has also acquired from Ford the rights to three other brand names: Daimler. On Tata's journey to make an international foot print. 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. In May. South Africa and Argentina and is planning to set up plants in Turkey. Thailand and Spain. Tata also franchisee/joint venture assembly operations in Kenya. In 2005. it acquired the Daewoo Commercial Vehicles Company. it formed a joint venture with the Brazil-based Marcopolo. a business comprising the two iconic British brands that was acquired in 2008. Tata has dealerships in 26 countries across 4 continents.

Thus Tata Motors CV will have to face tough competition in near future.made by it in an auto-making subsidiary in India. The purchase of Jaguar Cars is expected to help give Tata Motors a foothold in European and American markets. The policies adopted by Government will increase competition in domestic market. Tata Motors revealed its intention to enter the sedan and sports car markets.7 billion by 2010. . which might affect its growth negatively. motivate many foreign commercial vehicle manufactures to set up shops in India. With the unveiling of Tata Elegante during Geneva Motor Show. whom will make India as a production hub and export to nearest market. The policy sets an export target of $1 billion by 2005 and US$2. The move is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts.

The car is to be sold in India by 2013 and around the world by 2015 Tata Motors has expanded its production and assembly operations to several other countries including South Korea. .Tata Indica assembled in Thailand and Argentina. Kolkata. Indonesia and Eastern Europe. The joint venture manufactures and assembles fully built buses and coaches targeted at developing mass rapid transportation systems. JOINT VENTURES OF TATA MOTORS Tata Marcopolo Marcopolo is a bus manufacturing joint venture between Tata Motors (51%) and the Brazilbased Marcopolo S. and know-how in processes and systems for bodybuilding and bus body design from Marcopolo. It utilises technology and expertise in chassis and aggregates from Tata Motors. The Luxury Sedan was designed by Pininfrina and has marked the entry of Tata into the international sedan market. South Africa and Argentina and is planning to set up plants in Turkey. Chennai. Tata Marcopolo has launched a low-floor city bus which is widely used by Chandigarh. Thailand. (49%).A.

Kochi. Delhi. Mumbai. It was previously known as Telcon Construction Solutions.Coimbatore. a wholly owned subsidiary of Fiat. Tata Motors has gained access to Fiat’s diesel engine technology through the joint venture. Hyderabad. Its manufacturing facility is based in Dharwad. Tata Hitachi Construction Machinery Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which manufactures excavators and other construction equipment. Trivandrum and Bengaluru transport corporations. Lucknow. This distribution arrangement was ended in March 2013. Fiat-Tata Fiat-Tata is an India-based joint venture between Tata and Fiat which produces Fiat and Tata branded passenger cars as well as engines and transmissions. The two companies formerly also had a distribution joint venture through which Fiat products were sold in India through joint Tata-Fiat dealerships. . since when Fiats have been distributed in India by Fiat Automobiles India Limited. Pune.

For example. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time. • Despite buying the Jaguar and Land Rover brands (see opportunities below). This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. . Not only is it focusing upon new products and acquisitions. • The company has had a successful alliance with Italian mass producer Fiat since 2006. but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. Jaguar and Land Rover. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? • One weakness which is often not recognised is that in English the word 'tat' means rubbish. Tat has not got a foothold in the luxury car segment in its domestic.' • The company has a strategy in place for the next stage of its expansion. Indian market. and to only transplant a couple of senior managers from India into the new market. but they would buy into Fiat. WEAKNESSES The company's passenger car products are based upon 3rd and 4th generation platforms. which put Tata Motors Limited at a disadvantage with competing car manufacturers. and the companies have an agreement to build a pick-up targeted at Central and South America. Would the brand sensitive British consumer ever buy into such a brand? Maybe not. the Fiat Palio Style was launched by Tata in 2007.TATA MOTORS LIMITED STRENGTHS • The internationalization strategy so far has been to keep local managers in new acquisitions.SWOT ANALYSIS . The benefit is that Tata has been able to exchange expertise.

50 or more years. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. THREATS • Other competing car manufacturers have been in the passenger car business for 40.retailing at little more than a motorbike. eco- friendly engines. is the Nano the answer in terms of concept or brand? Incidentally. Therefore Tata Motors Limited has to catch up in terms of quality and lean . • The range of Super Milo fuel efficient buses are powered by super-efficient.OPPORTUNITIES • In the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! • The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again. These are the opportunities. • Nano is the cheapest car in the World . is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India. at a time when the World is looking for environmentally friendly transport alternatives. South Korea and China will have a thirst for low-cost passenger and commercial vehicles. Two of the World's luxury car brand have been added to its portfolio of brands. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. Whilst the World is getting ready for greener alternatives to gas-guzzlers. and will undoubtedly off the company the chance to market vehicles in the luxury segments. • Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million.

This could impact its underpinning competitive advantage. • Since the company has focused upon the commercial and small vehicle segments. • Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. Obviously. For example ICICI bank and DaimlerChrysler have invested in a new Pune. The price of steel and aluminium is increasing putting pressure on the costs of production. .based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford. • Sustainability and environmentalism could mean extra costs for this low-cost producer. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market. General Motors. In fact the entire Indian market has become a target for other global competitors including Mahindra and Mahindra. as Tata globalizes and buys into other brands this problem could be alleviated. Maruti Udyog.production. Honda and Toyota. Ford and others. it has left itself open to competition from overseas companies for the emerging Indian luxury segments.

3. ICV. 4. In this project I’ll analysis how different companies make different strategies in CV industry as compared to TATA Motors Ltd. Marketing Channel: TATA Motors being a big company the process of appointment a dealership at the remote places is a very difficult process. Competitors are having products only in specific segments like Mahindra & Mahindra in Indian CV Industry is known for School Buses & Ashok Leyland is having expertise in Medium & Heavy commercial Trucks & Buses. as investment on the dealership is very high. As many of Indian companies are now entering . Price Competition: TATA Motors have to face a price competition with products of other companies which have low qualities. MCV. Whether in case of Swaraj Mazda. company changes in Industry & every company has its own marketing strategy. due to the same supply chain of the products become tedious & time consuming. So as the product segment changes. 2. As in case of Mahindra & Force Motors investment cost is less & they have dealerships in every district place. Large Product Range: TATA Motors is having a large product range of vehicles. Porters Five Force Analysis for TATA Motors: 1. TATA Motors is the only company in the Indian Commercial Vehicle (CV) Industry which has the products presence in each segment from Small Commercial Vehicles to Medium & Heavy Commercial vehicle which includes (SCV. which help then to get the rural market coverage.PORTERS FIVE FORCE ANALYSIS FOR TATA MOTORS Commercial Vehicle Business Unit (CVBU) is Cash Cow for TATA Motors Ltd. First time user / captive customer who are unknown to the products & industry will get into the trap of these low cost options. Most of the mobile homes are set up in Swaraj mazda Buses only. they can do customisation within 10 days as the range of products is very less. Changing Scenario of Industry: From Oligopoly market CV industry in India will become a prefect competition market. M&M has got a market share of 31% in 4 ton Bus market. Products are made on order with the delivery commitment of at least 3 months. LCV. and HCV).

The Territory Infringement should imposed on dealership strongly. Large range of products is increasing the gap b/w supply & demand. Product should be available at the time of demand. Now the time Indian market place is very demanding.into the market place with JV with foreign experts in CV. This type of behaviour causes a feeling of being ignored inside the customers mind. Mahindra & Mahindra is coming up with Navistar (Mahindra Navistar in India) for Heavy CV. On the other hand. Leyland is very good in providing On-Route service which is very important for customer satisfaction. The company which come up with the customer satisfaction will be the market leader. there is extreme demand for AC Buses & construction equipments for building better infrastructure for India. 2. TATA Motors should increase the dealerships / channel partners for the rural marketing. After sales service not satisfactory: Almost every customer complained of the unsatisfactory after sales service being provided by the service stations of the company. sales & marketing should be pro active & should plan before the demand by estimations. TATA Motors should make 24X7 service point one in each district. Customers are very satisfied with the after sales service being offered by Ashok Leyland. Suggestions for adopting the Strategy according to the Segmentation 1. Mercedes Benz & Scania. TATA Motors should standardize the products. 4. 3. . For that TATA Motors need to understand the market dynamics. Either these people do not deliver the vehicle on time or they hesitate to provide on-route service. Upgrading Products: As in the changing scenario the needs of people are changing at very fast pace. In case of non viability should force the old dealerships to open a branch & increase the market share in that market. Territory Infringement: division of the territories of the dealership is not properly done and also the company does not take any action against the practice of territory infringement. Similarly other player niche players of world CV markets are coming up in Indian market like Volvo. Ashok Leylend is coming up with Nissan for Light Commercial Vehicles (LCV). This affects the sales of the product in a major way. 5. Hence it becomes difficult for some dealers to manage the customers in their territory and also it de-motivates them.

Product Improvements: Till now only few models are coming with radial tyres as standard fitments. This comes as a cause of major concern because the actual sales of that particular product suffered leading to loss of revenue for the organization. The spare parts how so ever small they may be were not available at certain times which led to the loss of revenue being generated by the bus on daily basis. 6. 7.availability of product: Bus fleet operators are not getting delivery of the product asked by them because of the non-availability of the products with the dealer. Need to work on automatic transmissions. Common rail Engines & many more technology advancements. Lack of spare parts: certain bus fleet operators complained of paucity of spare parts with the sales office.5. In that case after waiting for some time customers moved to competitor’s product. . Non.

Here. All of these meanings have been added to the product by advertising. One has to consider promotion that is balanced with a suitable product available at a reasonable price. The principal marketing functions involve market research and product development. Innovations. Packaging : A vehicle cannot have a material packaging. packaging refers to and effective assembly of features. and testing.MARKETING STRATEGY OF TATA MOTORS Marketing is the process by which a product or service originates and is then priced. Packaging. PRODUCT (Brand. known as the brand image. promoted. Quality) : a. b. It is the business activity of presenting products or services in such a way as to make them desirable. they not only think of its features. design. performance. The brand image goes far beyond the functional characteristics of the product. Tata Motors provide many innovative features to suit the . but they may also associate it with quality. Brand : Advertising is often used to make consumers aware of a product’s special low price or its benefits. 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. but when consumers think of it. MARKETING MIX PRODUCT Brand PRICE Pricing Strategy PROMOTION Personal Selling PLACE Channels Distributions Packaging Innovations Quality Pricing & Quality Price & Alterations Discounts Advertising Public Relations Physical Distribution Wholesaler & Retailers of 1. and distributed to consumers. provided at all places to maximize the sale of one’s product. The products of Tata Motors have many special characteristics to them. Tata Motors have been successful in creating and maintaining a professional brand image. But an even more important function of advertising is to create an image that consumers associate with a product. class.

Any further discounts made from the profits of the dealer. may compensate the dealer for the discounts allowed to a certain extent. This experience has helped them to develop products which fulfill the expectations of Indian consumers. Market Condition ii. Pricing Strategy : The prices are fixed keeping in mind a number of factors. E. Discounts) a. ensures that the customer does not face any inconveniences of a defective product. 2. c. Discounts : Discounts are decided by the Co. Tata Safari Dicor has ‘Reverse Guide System’ which includes a weather-proof camera to help the driver while reversing the vehicle. Innovations : The various motives behind buying an automobile are Need. However. the Co. Dealer Profit b.target customers and the product. If there is an alteration which affects the performance of the engine. d. then the warranty becomes void. . there may be alterations in the accessories. Prestige. Alterations : The Company does not allow any alterations to any of the features of the product.g. Alterations. The various determinants of price are i. Tata Motors give a relative price advantage as compares to its competitors. Fashion. Costs incurred iii. Comfort. The R & D Department continuously strives to bring new innovations in their product. The prices have to be at par with the prices of the competitors. every month. PRICE (Pricing Strategy. However. Profit percentage desired by the Co. iv. if desired by the customer. who desire more at less price. c. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers. Quality Control : Tata Motors have their Quality Control standards and the QC Dept. Jealousy and Novelty.

PROMOTION (Personal Selling. and carries out policies and programs to influence public opinion or public reaction about an idea. Public Relations) a. there may be a single or distinct dealerships to market its commercial and . a product. deals in commercial and passenger vehicles. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali. The advertisements done by the Co. dealership method of distribution and sales is generally adopted. develops. Personal Selling : There is minimal personal selling involved. or gifts. The Co. prizes.V. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. c. Tata Motors have also adopted dealership method of distribution of its products. The dealer conducts point-of-purchase displays to advertise the products.3. Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates. takes serious measures to maintain good public relations. The Co. The MRP is fixed by the Co. Advertising : Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Newspapers. Channels of Distribution : In case of vehicles. follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires 4. PLACE (Channels of Distribution) a. Internet etc. Advertising. Tata Motors is responsible for the advertising of its products. at a negotiated price. Public Relations : Public Relations is a management function that creates.. The dealers purchase products from the Co. extra product. help the dealer to capitalize on the market. Sales Promotion. b. d. Hoardings. The various media used for advertising are T. or an organization. and the dealer gets a profit within these prices. Magazines. As the Co. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising and personal selling. The dealer does play any role in the advertising.

passenger vehicles in a town. and Passenger Vehicles Dept. bulk quantities of vehicles are ordered by a Govt. to the Govt. respectively. However. itself. Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles. then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. in some cases. Dept. The sales. or a private company. Sometimes. if there is a single dealership appointed. . distribution and billing of these are looked after by the Co.

Hummer and others fail to maintain investments in either development or marketing. there is a real possibility that the brand will cease to exist. performance and quality are all functions of the investments made in product development and marketing. best in the products we deliver and best in our value systems and ethics". The Tata Indica and Tata Nano are prime examples of the company's innovation capabilities and bear testimony to the strength of the company's R&D efforts. As competitors such as Volvo. the Jaguar Land Rover deal shows us that TML is now targeting brand conscious. While the Nano targets the price conscious common man. Saab. TML has come to be known as an innovator in the passenger car segment not just in manufacturing but along multiple areas along the value chain. Brand appeal.RECOMMENDATIONS Industry analysts expect GM to sell the Hummer brand in 2009 and without a seller in sight. Brand Appeal and Endorsement 2. Quality TML can greatly enhance customers' perceptions of these three criteria with targeted increased investments. Performance Characteristics 3. However.or better products. as we've seen the route TML has taken involves competing on both strategies. . Company needs to focus on these 3 aspects to attract the consumers of the high-end market products: 1. The two ways firms compete are by either a differentiation strategy or a low cost strategy. this leaves the door open for TML to capitalize and gain both market share and momentum. A push in developing cutting-edge products in the Land Rover brand could enable Tata to capture Hummer customers as they look for comparable . This innovation fuelled growth coupled with strategic acquisitions is expected to catapult the company to a preeminent position internationally. TML's vision is to be "best in the manner in which we operate. TML needs to have a similar differentiated strategies focusing separately on these brands. TML is in a unique position to invest given the company's strong balance sheet and overall financial health. high-end consumers.

yahoofinance. http://www. http://www. http://www.capitaline.com/our_world/press_releases.moneycontrol/com/tata-group/tatamotors 9.WEBLIOGRAPHY 1.tatamotors.carwale.rediff.Tata Motors Ltd 3.com/our_world/press_releases. http://money. http://www.php?ID=458&action=Pull 6.com/tatamotors 10. Tata Motors' Official Website 2. http://www.tatamotors. http://www.com/doc/12248800/Grand-Project-on-NANO-Car 4.com/research/cars/tata .com/companies/tata-motors-ltd/10510008/cash-flow 8.com 5. htttp://www.php?ID=500&action=Pull 7. Wiki .docasi.

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