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INTRODUCTION

CHAPTER 1- INTRODUCTION

Ratan Naval Tata (born December 28, 1937, in Bombay, Bombay Presidency,
British India) is the present Chairman of Tata Sons and therefore, Tata Group[1],
India's largest conglomerate founded by Jamsedji Tata and consolidated and expanded
by later generations of his family. He is also the chairman of major Tata companies
such as Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea,
Tata Chemicals, The Indian Hotels Company and Tata Teleservices.
Early life
Ratan Tata was born into the famous Tata family, a prominent family belonging to
Mumbai's wealthy Parsi community. He was born to Soonoo and Naval Hormusji
Tata. Ratan is the great grandson of Tata group founder Jamsedji Tata. His childhood
was troubled, with his parents separating in the mid-1940s when he was merely seven
and his younger brother Jimmy was five years old. Their mother moved out and both
Ratan and his brother were raised by their grandmother Lady Navajbai.

Early career
Ratan Tata completed his BSc degree in architecture with structural engineering from
Cornell University in 1962, and the Advanced Management Program from Harvard
Business School in 1975.[2] He joined the Tata Group in December 1962, after turning

down a job with IBM on the advice of JRD Tata. He was first sent to Jamshedpur to
work at Tata Steel. He worked on the floor along with other blue-collar employees,
shoveling limestone and handling the blast furnaces.[3] Ratan Tata, a shy man, rarely
features in the society glossies, has lived for years in a book-crammed, dog-filled
bachelor flat in Mumbai's Colaba district and is considered to be a gentleman
extraordinaire.[4][5]
Career
In 1971, Ratan was appointed the Director-in-Charge of The National Radio &
Electronics Company Limited (Nelco), a company that was in dire financial difficulty.
Ratan suggested that the company invest in developing high-technology products,
rather than in consumer electronics. J.R.D. was reluctant due to the historical financial
performance of Nelco which had never even paid regular dividends. Further, Nelco
had 2% market share in the consumer electronics market and a loss margin of 40% of
sales when Ratan took over. Nonetheless, J. R. D. followed Ratan's suggestions.
From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and
recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi declared a
state of emergency, which led to an economic recession. This was followed by union
problems in 1977, so even after demand improved, production did not keep up.
Finally, the Tatas confronted the unions and, following a strike, a lockout was
imposed for seven months. Ratan continued to believe in the fundamental soundness
of Nelco, but the venture did not survive.
In 1977, Ratan was entrusted with Empress Mills, a textile mill controlled by the
Tatas. When he took charge of the company, it was one of the few sick units in the
Tata group. Ratan managed to turn it around and even declared a dividend. However,
competition from less labour-intensive enterprises had made a number of companies
unviable, including those like the Empress which had large labour contingents and
had spent too little on modernisation. On Ratan's insistence, some investment was
made, but it did not suffice. As the market for coarse and medium cotton cloth (which
was all that the Empress produced) turned adverse, the Empress began to accumulate
heavier losses. Bombay House, the Tata headquarters, was unwilling to divert funds
from other group companies into an undertaking which would need to be nursed for a

long time. So, some Tata directors, chiefly Nani Palkhivala, took the line that the
Tatas should liquidate the mill, which was finally closed down in 1986. Ratan was
severely disappointed with the decision, and in a later interview with the Hindustan
Times would claim that the Empress had needed just Rs 50 lakhs to turn it around.
In 1981, Ratan was named director of Tata Industries, the Group's other holding
company, where he became responsible for transforming it into the Group's strategy
think-tank and a promoter of new ventures in high-technology businesses.
In 1991, he took over as group chairman from J.R.D. Tata, pushing out the old guard
and ushering in younger managers. Since then, he has been instrumental in reshaping
the fortunes of the Tata Group, which today has the largest market capitalization of
any business house on the Indian Stock Market.
Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors was
listed on the New York Stock Exchange. In 1998, Tata Motors introduced his
brainchild, the Tata Indica.
On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully
acquired Corus Group, an Anglo-Dutch steel and aluminium producer. With the
acquisition, Ratan Tata became a celebrated personality in Indian corporate business
culture. The merger created the fifth largest steel producing entity in the world.
On March 26, 2008, Tata Motors, under Ratan Tata, bought Jaguar & Land Rover
from Ford Motor Company. The two iconic British brands, Jaguar and Land Rover,
were acquired for 1.15 billion ($2.3 billion).

Tata Nano car, 2008

Ratan Tata's dream was to manufacture a car costing Rs 100,000 (1998: approx.
US$2,200; today US$2,000 US$2,528). He realized his dream by launching the car in
New Delhi Auto Expo on January 10, 2008. Three models of the Tata Nano were
announced, and Ratan Tata delivered on his commitment to developing a car costing
only 1 lakh rupees, adding that "a promise is a promise," referring to his earlier
promise to deliver this car at the said cost. However, the price of the car has since
been raised. Recently when his plant for Nano production in Singur, West Bengal,
was obstructed by Mamta Banerjee, his decision of going out of the state was warmly
welcomed by the Indian corporate media and the English-speaking middle class.
Banerjee criticised Ratan Tata for forcing people out of their land in collusion with
the Left Front government in the state, which is headed by Budhadeb Bhattacharjee.
On October 7, 2008, after a controversial stay in West Bengal, Ratan Tata and his
team shifted their Rs 1-lakh car Nano project to Sanand near Ahmedabad at an
investment of Rs 2,000 crore (Rs 20 billion), declaring that efforts will be made to roll
out the world's cheapest car from a make-shift plant to meet the deadline. The Gujarat
chief minister Narendra Modi granted him huge subsidy for building the facility,
including free land. Praising Modi for speedy allocation of about 1,100 acres (4.5
km2) of centrally located land, Ratan Tata said that the company had a great deal of
urgency in having a new location and was driven by the reputation of the state.
The car was launched on March 23, 2009, amid much fanfare with advance bookings
that preceded its launch by months.

Personal life
Mr. Ratan TataTotal Association Total Association has a metallic blue Maserati
and Ferrari California but prefers to drive himself in an old model Mercedes sedan
much like JRD who seldom used a chauffeur and drove his own Fiat to and from
work.[6] He sometimes likes to fly his private jet himself. He has an outdated Falcon
Jet, which is no longer used for commercial aviation.[7] He has never been married.[8]
He likes to wear Herms ties and matching handkerchiefs. [1]

Ratan Tata is largely an employee Chairman / CEO of the group and most his own
holding in Tata Sons., the holding company of the group, is a result of inherited
family shareholding. His share is or a little less than 1%, valuing his personal holding
at approximately US$ 1 Billion, if encashed.[citation

needed]

About 66% of the equity

capital of Tata Sons is held by philanthropic trusts endowed by members of the


original Jameshedji family and the largest share is with the Shapoorji Pallonji Mistry
family aligned originally to Jamshetji's brother in law. The biggest two of the owning
trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan
Tata), which were created by the families of the sons of Jamshedji Tata. Ratan Tata is
on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board
of trustees of the Sir Dorabji Tata Trust.[original research?] Ratan Tata is also best known
for the face behind changing India's automotive industry into global climate change
era.

Quotes

"Question the unquestionable"

"A promise is a promise"

AWARDS AND RECOGNITION


Ratan Tata serves in senior capacities in various organisations in India and he is a
member of the Prime Minister's Council on Trade and Industry. Tata is on the board
of governors of the East-West Center, the advisory board of RAND's Center for Asia
Pacific Policy and serves on the programme board of the Bill & Melinda Gates
Foundation's India AIDS initiative.[10]
Ratan Tata's foreign affiliations include membership of the international advisory
boards of the Mitsubishi Corporation, the American International Group, JP Morgan
Chase and Booz Allen Hamilton. He is also a member of the board of trustees of the
RAND Corporation, University of Southern California and of his alma mater, Cornell
University.[11][12] He also serves as a board member on the Republic of South Africa's
International Investment Council and is an Asia-Pacific advisory committee member
for the New York Stock Exchange.

On the occasion of India's 50th Republic Day on 26 January 2000, Ratan Tata
was honoured with the Padma Bhushan, the third highest decoration that may
be awarded to a civilian.[10]

In February 2004, Ratan Tata was conferred the title of honorary economic
advisor to Hangzhou city in the Zhejiang province of China.[13]

On August 30, 2005, it was announced that Ratan Tata was elected to the
Board of Trustees of the University of Southern California, Los Angeles, one
of the leading research universities in the United States.

In 2006 he received the FIRST Award for Responsible Capitalism.[14]

In March 2006 Tata was honoured by Cornell University as the 26th Robert S.
Hatfield Fellow in Economic Education, considered the highest honor the
university awards to distinguished individuals from the corporate sector.[15]

He was one of the recipients of the NASSCOM Global Leadership Awards


2008, given at a ceremony on February 14, 2008 in Mumbai. Ratan Tata
accepted the Carnegie Medal of Philanthropy in 2007 on behalf of the Tata
family.[16][17]

He was listed among the 25 most powerful people in business named by


Fortune magazine in November 2007.

In May 2008 Mr Tata made it to the Time magazine's 2008 list of the World's
100 most influential people. Tata was hailed for unveiling his tiny Rs. one
lakh car 'Nano'.[18]

On 26 January 2008, he was awarded the Padma Vibhushan, the second


highest civilian decoration.[10]

On 29 August 2008, the Government of Singapore conferred honorary


citizenship on Ratan Tata, in recognition of his abiding business relationship
with the island nation and his contribution to the growth of high-tech sectors
in Singapore. Ratan Tata is the first Indian to receive this honour.[19]

In 2009 he was appointed an honorary Knight Commander of the British


Empire[20].

He has also been conferred an honorary doctorate in business administration


by the Ohio State University, an honorary doctorate in technology by the
Asian Institute of Technology, Bangkok, an honorary doctorate in science by
the University of Warwick, and an honorary fellowship by the London School
of Economics.[10] He has recently received an honorary Doctor of Law from
the University of Cambridge.[21]

In 2010, Ratan Tata was named one of the '50 People Who Matter 2010'[22] by
New Statesman Magazine

The automotive industry is an extremely reliable indicator of economic growth;


quite obviously, its growth boosts the economys performance. As India
celebrates its 50 years of independence, the passenger car industry
celebrated a centenary of its existence in India in 1998. Despite this head
start, the industry has never quite matched up to the performance of its
counterparts in other parts of the world. The all -pervasive atmosphere
created by the government's license raj was primarily responsible for this
situation. The various layers of Acts sheltered the industry from external
competition and smothered the development of the Indian automobile
industry. Moreover, the industry was considered low priority as cars were
considered to be an "unaffordable luxury."
Hence in the first part of the project I have taken up the strategic group analysis of
TELCO as this is one company whose indigenously manufactured cars like

Tatamobile, Indica and Safari have performed well on Indian Roads. In the second part
of the project I conducted a study on the consumer perception about small cars. Firstly,
I took three brands of small cars; Zen, Indica and Santro for a comparative study of
small car segment.
Later I went through the process of filling the questionnaires, to know
exactly what the customers of small cars perceived about their cars. A
sample size of sixty respondents was taken. Sample unit was a customer who
owned a small car. Secondary data from various sources like magazines,
journals etc was also collected.
The findings showed that the consumers who owned small cars basically
wanted good performance, after sales service and a car at their budget, a less
expensive one.
All the cars taken for the sample showed that the consumers perceived them
as almost same in all the attributes like safety, comfort and luxury.
Respondents liked Indica more for its looks, whereas Marutis after sales
service was perceived to be good.
But, at the end the research was limited due to small sample size, small
sample area and time constraints.

INDUSTRY PROFILE

With the liberalization of the Indian economy, the passenger car industry
was finally deregulated in 1993 and many companies, both Indian and
foreign, announced their plans to enter the market. The last four years have
seen companies like Daewoo, Ford, GM, and Mercedes-Benz launches their
cars in India. The passenger car industry notched impressive growth rates
between 26-30% during the period FY 94-96 even though the economic
slowdown has adversely affected the industry in FY 98 with the growth rate
tricking down to 1%. Nonetheless, times have changed significantly - the
days of the customer chasing the dealer to purchase poor quality cars backed
by inefficient service are history. Today, the customer dictates the terms.

The future of Indian cars is purely dependent on advancements and innovations.Just


go back to the olden days when the old Fiat Padmini and Hindustan Ambassador were
shinning on Indian roads. At that period of time, did anyone of us thought that the car
market will prosper to such a height? No one of us ever imagined such a speedy and
accelerated growth of the Indian market.

Since that old Fiat and Amby were introduced,

the Indian car industry

has travelled a long and bumpy road. Fortunately, today the industry shines at the top
with a good number of cars running on roads. It also plays a key role in the industrial
and economic development of the country.

Today,

the Indian industry is flying with the wings of technology,

advancement and innovation. The first car manufactured as a result of technological


advancement is Maruti Suzuki 800 in 1983, a car that revitalized

the

Indian automobile sector. This car was a productive result of a joint venture between

Government of India and Suzuki Motors of Japan. Thereafter, many


car manufacturers across the world entered

the Indian car market.

Some of the biggest car manufacturers who have set up their manufacturing facilities
in India are Tata, Toyota, BMW, Audi, Ford, Skoda, Volkswagen, Mitsubishi, Suzuki,
Honda, Hyundai, Maruti, Mercedes, Chevrolet Fiat, Mahindra, and Volvo. These
manufactures are currently producing the worlds best car models, progressively
booming the Indias economic growth. Some of these companies are also importing
cars and other car accessories to meet the increasing demand of car market in India.

The reason why many foreign manufactures entered

the Indian markets

is availability of highly skilled engineers, low cost labor, technical know how, less
investment, cheap machinery and raw materials, established quality systems and
rewarding returns. Even the cost of production is reduced to about 25-30% as
compared to overseas production. This pace of advancement and improved production
not only paved way for foreign manufacturers but also provided enhanced ability to
Indian

car manufacturers for producing better models.

With the increasing number of cars running on


future of Indian

the Indian roads, the

car industry is also running with a very high velocity.

One of the leading car manufacturing companies, Ford, is planning to make India a
regional hub for exporting small cars and engines. At the other edge, Skoda is
planning to source some of the European operations from its Indian facility. It is
believed that this operation will increase indigenization level for all

the

Indian cars to almost 70%, providing Indian cars a competitive edge in the global
market.

Many

car manufacturers are rolling out new cars and many are in

pipeline. Today, the car market is congested with world class cars like the
Volkswagen Jetta, BMW 7 series, Maruti Suzuki SX4, Ford Fiesta, and Honda Civic.
Tata Motors is all set to roll out the worlds cheapest car, Hyundai Motors waiting to
announce the launch of Hyundai i20, and Maruti Suzuki awaiting the launch of the

global car, Maruti Suzuki A-Star. Likewise, many other

car

manufacturers including Volvo, Volkswagen, Mercedes-Benz, BMW, Honda Seil,


Rolls Royce Phantom, and even Skoda has a slew of launches in their pipeline for
the Indian

car industry.

Apart from new cars rolling every day on Indian roads, there are many new features
added to the cars. Cars are also becoming automated with the use of automatic
transmission system. Some of the high-end technological dazzlers are loaded with
advanced and top-notch technical features. Along with, the entry of alternative fuel
options is also expected to hit

the Indian

car industry.

India will also have cars powered with air and water in future.
So, the future is definite and India is soon to hit the worlds car market and become
the third largest
foreign

car industry after US and China. All the domestic and


car manufacturers are making various advancements in the car

models with respect to design, technology, fuel efficiency, colors, innovation, style,
performance, luxuries and price. These advancements are constantly flourishing
the Indian car market, a market that has transformed from a small ray
to a competitive sunrise industry.

COMPANY PROFILE

TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the TATA
Group, the oldest and among the largest industrial conglomerates of India. Tata
motors one of India's largest private sector companies with a turnover of over Rs.80
billion, is the country's leading commercial vehicle manufacturer and has significant
presence in the multi-utility and passenger car segments.
Tata motors was established on September 1, 1945, originally for the manufacture of
Steam Locomotives at Jamshedpur. By 1954, the company had diversified into the
manufacture of commercial vehicles in collaboration with Daimler Benz, Germany.
By the time their collaboration ended in 1969, Tata motors had become an
independent producer of Medium Commercial Vehicles with a great degree of
indigenization. It had also developed the capability of designing, testing and
manufacturing such vehicles.
The widely successful Tata Indica, a Euro 2 compliant vehicle, is the countrys first
indigenously designed, developed and manufactured passenger car. Tata Motors
followed that up with the Tata Indigo, a sedan that was launched in December 2002.
The company also makes several other passengers vehicles, including the Safari,
Sumo and Sierra.
The companys products have received wide acceptance not only in India but also in
the Middle East, Asia, Africa, Australia, Latin America and Europe.

Areas of business
The company manufactures medium, heavy and light commercial vehicles, multiutility vehicles and passenger cars. In the year ending March 2001, the companys
revenues from its four manufacturing plants at three locations in India were Rs. 81.64
billion (US $ 1.73 billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion)
{The average exchange rate has been taken as Rs 47.0 to one US dollar.}
In the year ended 31 March 2001, the companys total exports were worth about Rs
7.22 billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million)
in the previous year.
Locations
The companys manufacturing plants in India are at Jamshedpur, Pimpri and
Chinchwad near Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been
acquired at Dharwad (Karnataka) to build a fifth plant.
Collaborations
The company has technical tie-ups with:

The Institute of Development in Automotive Engineering (IDEA), S.P.A.,


Italy, for assistance in small car body design and styling; and

Le Moteur Moderne, France, for the development of diesel and petrol engines
for passenger cars.

Subsidiaries

Tata Construction Equipment Company Ltd. (TELCON): Its principal


business is manufacture and sale of construction, material handling and
earthmoving equipment.

Tata Technologies Ltd.: It oversees the IT requirements of Tata Motors and


provides services for SAP implementation, CAD/CAM-based design, and ecommerce facilities to customers in India and abroad.

Sheba Properties Ltd: It is an investment and finance company and a whollyowned subsidiary of Tata Motors since its inception. It is registered with RBI
as a Non Banking Finance company.

Telco Dadajee Dhakjee Ltd. (TDDL): It is an investment and finance


company and proposes to undertake activities pertaining to the sales and
service of Tata Motorss vehicles and spare parts.

Minicar (India) Ltd.: Formerly known as Mazda Industrial Chemicals Ltd.,


this company was incorporated on January 18, 1972 and is currently engaged
in the business of automobile sales and services.

HV Transmissions Ltd.: It was incorporated on March 13, 2000 with the


objective of acquiring the Heavy-Duty Gear Box Division of Tata Motors at
Jamshedpur as a going concern. It supplies transmissions and their parts to
Tata Motors against purchase orders raised by Tata Motors on HVTL.

HV Axles Ltd.: It was incorporated on March 13, 2000 with the objective of
acquiring the Heavy-Duty Axle Division of Tata Motors at Jamshedpur as a
going concern. It supplies axles and their parts to Tata Motors against
purchase orders raised by Tata Motors on HVAL.

Telco Automation Ltd.: It was incorporated on March 13, 2000 with the
objective of acquiring the Machine Tool and Growth Divisions of Tata Motors
as a going concern. As and when required, Tata Motors sources factory
automation equipment from TAL.

Tata Technologies, USA: It was incorporated on August22, 1994 and became


a wholly owned subsidiary of Tata Technologies Limited on December 22,

2000. The company is engaged in the business of computer consultancy and


related services.
Strategic alliances
Tata Motors has several joint ventures and alliances. These include:

Tata Cummins Ltd., a joint-venture with Cummins Engine Company Inc.,


USA; makes fuel-efficient, low emission, environment-friendly diesel engines;

Tata Holset Ltd., a joint-venture with Holset Engineering Company, UK,


makes turbochargers for diesel engines manufactured by Tata Cummins Ltd.
and other OEMs;

Concorde Motors Ltd., a joint venture with Jardine International Motors


(Mauritius) for dealerships of passenger vehicles. Concorde has dealerships
for Tata Motors passenger vehicles in Delhi, Mumbai, Bangalore, Ludhiana,
Hyderabad, Chennai and Lucknow.

Tata Precision Industries Pvt. Ltd., Singapore, for the manufacture and sale
of high precision too lings as well as electronic and plastic components for the
computer industry;

Tata Motors Services Ltd., Singapore, for the sale of spare parts for Tata
vehicles; and

Nita Company Ltd., Bangladesh, for the assembly and sale of Tata
commercial vehicles.

VISION AND MISSION

Vision
To be the leading provider of Tata Motors services in India and a major global
companies.

Mission
Be the Tata Motors of first choice for our customers by delivering high
quality, world-class products and services.
Expand the frontiers of our business globally.
Play a proactive role in the full realization of Indias potential.
Maintain a healthy financial profile and diversify our earnings across
businesses and geographies.
Maintain high standards of governance and ethics.
Contribute positively to the various countries and markets in which we
operate.
Create value for our stakeholders.

BOARD OF DIRECTORS
NAME

DESIGNATION

Ratan N Tata

Chairman / Chair Person

Carl-Peter Forster

Managing Director & CEO

J J Irani

Director

N N Wadia

Director

R A Mashelkar

Director

N Munjee

Director

Ranendra Sen

Independent Director

Ravi Kant

Vice Chairman

P M Telang

Managing Director

R Gopalakrishnan

Director

S M Palia

Director

S Bhargava

Director

V K Jairath

Director

Tata Daewoo Commercial Vehicle


Main article: Tata Daewoo Commercial Vehicle
With the success of Tata Indica, Tata Motors aimed to increase its presence
worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South
Korea. The reasons behind the acquisition were:

Company's global plans to reduce domestic exposure. The domestic


commercial vehicle market is highly cyclical in nature and prone to
fluctuations in the domestic economy. Tata Motors has a high domestic
exposure of ~94% in the MHCV segment and ~84% in the light commercial
vehicle (LCV) segment. Since the domestic commercial vehicle sales of the
company are at the mercy of the structural economic factors, it is increasingly
looking at the international markets. The company plans to diversify into
various markets across the world in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT
GVW Tata Novus from Daewoos (South Korea) (TDCV) platform. Tata
plans to leverage on the strong presence of TDCV in the heavy-tonnage range
and introduce products in India at an appropriate time. This was mainly to
cater to the international market and also to cater to the domestic market
where a major improvement in the Road infrastructure was done through the
National Highway Development Project.

Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo
is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata
Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and
World Truck and buses namely, GloBus and StarBus.

Hispano Carrocera
Main article: Hispano Carrocera
In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a
21% stake in Hispano Carrocera SA,[8] the leading European bus and coach cabin
maker. In 2009, the company picked up the remaining 79% stake in Hispano
Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.

Jaguar Cars and Land Rover


Main articles: Jaguar Cars and Land Rover
After the acquisition of the British Jaguar Land Rover (JLR) business, which also
includes the Daimler, Lanchester and Rover brands,[9] Tata Motors became a major
player in the international automobile market. On 27 March 2008, Tata Motors
reached an agreement with Ford to purchase their Jaguar Land Rover operations for
US$2 billion. The sale was completed on 2 June 2008.[6]
In addition to the brands, Tata Motors has also gained access to two design centres
and two plants in UK. The key acquisition would be of the intellectual property rights
related to the technologies.

Joint ventures

Tata MarcoPolo released this low-floor bus in India and now it is widely used as
public transport in Delhi, Mumbai, Bangalore and Lucknow
Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of
Brazil. This joint venture is to manufacture and assemble fully-built buses and
coaches targeted at developing mass rapid transportation systems. The joint venture
will absorb technology and expertise in chassis and aggregates from Tata Motors, and
Marcopolo will provide know-how in processes and systems for bodybuilding and bus
body design. Tata and Marcopolo have launched a low-floor city bus which is widely
used by Chennai,Delhi, Mumbai,Lucknow and Banglore transport corporations.
Tata Motors also formed a joint venture with Fiat and gained access to Fiats diesel
engine technology.[10] Tata Motors sells Fiat cars in India and is looking to extend its
relationship with Fiat and Iveco to other segments. Tata has also formed several JV's
with many small companies in various countries around the world.

Tata Nano
Main article: Tata Nano

Tata Nano
In January 2008, Tata Motors launched Tata Nano, the least expensive production car
in the world at about Rs. 100,000 (US $2,500).[11] The city car was unveiled during
the Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.[12]
Tata has faced controversy over developing the Nano as some environmentalists are
concerned that the launch of such a low-priced car could lead to mass motorization in
India with adverse effects on pollution and global warming. Tata has set up a factory
in Sanand, Gujarat and the first Nanos are to roll out summer 2009.
Tata Nano Europa has been developed for sale in developed economies and is to hit
markets in 2010 while the normal Nano should hit markets in South Africa, Kenya
and countries in Asia and Africa by late 2009. A battery version is also planned.
Tata has also been approached by a province in France named Moselle to setup a Tata
Nano manufacturing plant.

Tata Ace
Main article: Tata Ace

Tata Ace was India's first mini truck


Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched
in May 2005. 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. Ace rapidly emerged as the first choice for transporters and single
truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors
had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace
was built with a load body produced by Autoline Industries.[13] By 2005, Autoline was
producing 300 load bodies per day for Tata Motors. Tata Ace - Apka Pyaara Chota
Hathi.
Ace is still a top seller for TML with 5M units sold to date (June 2010).[14]
Ace has also been exported to several European, South American and African
countries and all-electric models are sold through Chrysler's Global Electric
Motorcars division.[15]

Compressed air car


Main article: Tata OneCAT

Tata OneCAT
Motor Development International of France has developed the world's first prototype
of a compressed air car, named OneCAT.[16] In 2007, MDI owner Guy Negre was
reported to have "the backing of Tata".[16]
It has airtanks that can be filled in 4 hours by plugging the car into a standard
electrical plug. In 2008 MDI planned to also design a gas station compressor, which
would fill the tanks in 3 minutes.[17] There are no gasoline costs and no fossil fuel
emissions from the vehicle when run in town, but "the compressed air driving the
pistons can be boosted by a fuel burner".[17]
OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is
said to run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle.
There are severe physical arguments pleading against those figures. In December
2009 Tata's vice president of engineering systems confirmed that the limited range
and low engine temperatures were causing difficulties.[18]
Electric vehicles
Tata Motors unveiled the electric versions of passenger car Tata Indica and
commercial vehicle Tata Ace. Both run on lithium batteries. The company has
indicated that the electric Indica would be launched locally in India in about 2010,
without disclosing the price. The vehicle would be launched in Norway in 2009.[19]

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a
50.3% holding in electric vehicle technology firm Miljbil Grenland/Innovasjon of
Norway for US$1.93 M, which specialises in the development of innovative solutions
for electric vehicles, and plans to launch the electric Indica hatchback in Europe next
year.[20][21][22] On 17 Sept 2010 Tata motors presented to the DTC [ Delhi Transport
corporation] Four CNG - Electric Hybrid lowfloored Starbuses to be used for
commonwealth games.These will be the first Environmentally friendly buses to be
used for public transportation in India.

TATA IN INDIA

A loaded Tata truck on a Rajasthan highway


Tata Motors Limited is Indias largest automobile company, with revenues of
35,651.48 crore (US$7.88 billion) in 2007-08.[23] It is the leader in commercial
vehicles in each segment, and among the top three in passenger vehicles with winning
products in the compact, midsize car and utility vehicle segments.[23] Tata Motors
presence indeed cuts across the length and breadth of India. Over 4 million Tata
vehicles ply on Indian roads, since the first rolled out in 1954.[24] The companys
manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad
(Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a
new plant at Sanand (Gujarat). The companys dealership, sales, services and spare
parts network comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India.[23]

Tata's global operations


Tata Motors has been in the process of acquiring foreign brands to increase its global
presence and currently has operations in the UK, South Korea, Thailand and Spain.
Among them is Jaguar Land Rover, a business comprising the two iconic British
brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights
of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South
Koreas second largest truck maker. 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. Today two-thirds of
heavy commercial vehicle exports out of South Korea are from Tata Daewoo.In 2005,
Tata Motors acquired a 21% stake in Hispano Carrocera, a Spanish bus and coach
manufacturer,[8] giving it controlling rights of the company. Tata Motors continued its
product line expansion through the introduction of new products into the market range
of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly
developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009
Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo

[25]

They will debut in South Korea, South Africa, the SAARC countries and the MiddleEast by the end of 2009

[25]

In 2006, it formed a joint venture with the Brazil-based

Marcopolo to manufacture fully-built buses and coaches for India and other
international markets.[26] Tata Motors has expanded its production and assembly
operations to several other countries including South Korea, Thailand, South Africa
and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern
Europe.[23] Tata also has franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia and Senegal.[27] Tata has dealerships in 26 countries
across 4 continents.[28] Though Tata is present in many countries it has only managed
to create a large consumer base in the Indian Subcontinent namely India, Bangladesh,
Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and
South Africa

PRODUCTS
Passenger cars and utility vehicles

Tata Xover

Tata Nano Europa

Tata Starbus Low Floor 1610

Tata Marcopolo buses in the Delhi BRT.

Tata Sierra (Discontinued)

Tata Estate (Discontinued)

Tata Sumo/Spacio

Tata Safari

Tata Indica

Tata Vista

Tata Indigo

Tata Manza

Tata Indigo Marina

Tata Winger

Tata Magic

Tata Nano

Tata Xenon XT

Tata Aria

Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Pr1ma

2010 Tata Versa

2010 Tata Essota

Commercial vehicles

Tata Ace

Tata TL/Telcoline/207 DI Pickup Truck

Tata 407 Ex and Ex2

Tata 709 Ex

Tata 809 Ex and Ex2

Tata 909 Ex and Ex2

Tata 1109 (Intermediate truck)

Tata 1510/1512 (Medium bus chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1610/1623 (Rear Engined Low Floor bus chassis)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city,inter city,school bus and standard
passenger transportation)

Tata Globus (Range of fully built luxury coaches)

Tata Hispano Globus (Rear Engined Inter city coach)

Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid
Transit and also standard passenger transportation Buses)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4x4)

Tata 2 Stretcher Ambulance

Tata 407 Troop Carrier, available in hard top, soft top, 4x4, and 4x2 versions

Tata LPTA 713 TC (4x4)

Tata LPT 709 E

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

Tata Winger Passenger Mini Bus

Tata Motors technology and design subsidiaries


Tata has dozens of technology and design subsidiaries. These include the main ones.

PRODUCT MIX

Indica

Sumo

Indigo

Safari

TELCO
Currently the largest automobile company in India, Tata Motors ranks among the top
10 commercial vehicle producers in the world.
The transition of Tata Motors from being a predominantly commercial vehicle
manufacturer to a complete automobile company began in the early 1990's with the
launch of the first Sports Utility vehicle from Tata- the Sierra and later the Tata
Estate. The insights gained into customer needs in these markets led to the
development of another world-class Sports Utility Vehicle, the Tata Safari, launched
in 1998.
Soon after launching the Safari, Tata Motors made an aggressive foray into the
mainline passenger car market with its small car, the Tata Indica. The Indica fulfills
the Tata Group Chairman Ratan Tata's vision of developing and manufacturing a truly
Indian car that would use modern technology and contemporary styling of the small
car genre. It went on to set a benchmark in terms of its value proposition in terms of
best value for money in its segment and internal spaciousness.
The overwhelming customer response that the Indica generated at its launch in early
1999 has translated into its capturing more than 17% of the premium small car
segment, and 8 % of the entire passenger car market in India within a year.
Clearly identifying the core areas as R&D, manufacture of critical components and
the final vehicle assembly, the company continues to be open to global alliances to
effectively enhance its competitiveness in the fast globalizing Indian markets.
Setting standards of corporate governance, Tata Motors focuses on Complete
Customer Satisfaction. With benchmarking systems to sell world-class products and
services, Tata Motors continues to uphold the trust of its various stakeholders, viz.
shareholders, customers, employees and business associate.
Business Sector
The Tata Group runs businesses in seven key industrial sectors, namely, Materials,
Energy, Chemicals, Consumer Products, Engineering, Communications and

Information Systems, and Services. TELCO is Tatas flagship company in the


Engineering sector.
Business Models
TELCO is primarily a Business-to-Consumer Company (B2C), serving various needs
of a number of its customers. It also practices the Business-to-Business (B2B) Model,
though at a much lower scale.
Business
TELCO is into the business of manufacturing and selling medium, heavy and light
commercial vehicles, multi utility vehicles and passenger cars.
Its major product line can be basically classified into three broad categories. There are
various sub-brands and products in these categories:
1. Passenger Cars
2. Utility Vehicles
3. Commercial Vehicles
TELCO currently has three products in its Passenger Car division namely,
a. Tata Indica
b. Tata Indigo
c. Tata Safari
It is in the process of coming out with another member in the passenger car family,
the all-new Indica Sedan, set out to storm the Indian Mid-Size Passenger car
segment, which would be launched in the last quarter of 2008.
Confirming to International standards all these vehicles are available with various
features such as petrol & diesel versions, 2-wheel and 4-wheel drives etc.
TELCO currently has three products in its Multi-Utility vehicle division namely,
a. Tata Sumo
b. Telco Sport
c. Telcoline Pickup Vans

All these vehicles come only in diesel-engine versions and are quite popular on the
Indian roads, especially on the highways and in the rural areas. They are known for
their build quality, reliability, ruggedness, and the various uses that they can be put at.
They are used as people carriers, as emergency vans, goods carriers, pick-up vehicles
and so many more uses.
The utility pick-up vans of Tata International are made for all kind of terrains and are
facilitated with features like 2 & 4 wheel drive, single & crew cabs etc.
TELCO is the undisputed leader as regards the Commercial Vehicle segment. It has a
large number of products in this segments classified as various types namely,
a. Buses
-

Small Buses

Big Buses

(4 models)
(4 models)

b. Trucks
-

Light Trucks

(5 models)

Medium/Heavy Trucks (9 models)

c. Tippers

(3 models)

d. Tractors

(3 models)

S.W.O.T ANALYSIS

STRENGTHS
New investment by Tata in factories in the US and China saw 2005 profits rise,
against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen
($11bn; 5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators
argue that this is because the company has the right mix of products for the markets
that it serves. This is an example of very focused segmentation, targeting and
positioning in a number of countries.
In 2003 Tata knocked its rivals Ford into third spot, to become the World's second
largest carmaker with 6.78 million units. The company is still behind rivals General
Motors with 8.59 million units in the same period. Its strong industry position is based
upon a number of factors including a diversified product range, highly targeted
marketing and a commitment to lean manufacturing and quality. The company makes
a large range of vehicles for both private customers and commercial organisations,
from the small Yaris to large trucks. The company uses marketing techniques to
identify and satisfy customer needs. Its brand is a household name. The company also
maximizes profit through efficient manufacturing approaches (e.g. Total Quality
Management).

WEAKNESS
Being big has its own problems. The World market for cars is in a condition of over
supply and so car manufacturers need to make sure that it is their models that
consumers want. Tata markets most of its products in the US and in Japan. Therefore
it is exposed to fluctuating economic and political conditions those markets. Perhaps
that is why the company is beginning to shift its attentions to the emerging Chinese
market. Movements in exchange rates could see the already narrow margins in the car
market being reduced.
The company needs to keep producing cars in order to retain its operational
efficiency. Car plants represent a huge investment in expensive fixed costs, as well as
the high costs of training and retaining labour. So if the car market experiences a
down turn, the company could see over capapacity. If on the other hand the car
market experiences an upturn, then the company may miss out on potential sales due
to under capacity i.e. it takes time to accommodate. This is a typical problem with
high volume car manufacturing.

OPPURTUNITIES
Lexus and Tata now have a reputation for manufacturing environmentally friendly
vehicles. Lexus has RX 400h hybrid, and Tata has it Prius. Both are based upon
advance technologies developed by the organization. Rocketing oil prices have seen
sales of the new hybrid vehicles increase. Tata has also sold on its technology to other
motor manufacturers, for example Ford has bought into the technology for its new
Explorer SUV Hybrid. Such moves can only firm up Tata's interest and investment in
hybrid R&D.
Tata is to target the 'urban youth' market. The company has launched its new Aygo,
which is targeted at the streetwise youth market and captures (or attempts to) the
nature of dance and DJ culture in a very competitive segment. The vehicle itself is a

unique convertible, with models extending at their rear! The narrow segment is
notorious for it narrow margins and difficulties for branding.

THREATS
Product recalls are always a problem for vehicle manufacturers. In 2005 the company
had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front
suspension systems. Tata did not give details of how much the recall would cost. The
majority of affected vehicles were sold in the US, while the rest were sold in Japan,
Europe and Australia.
As with any car manufacturer, Tata faces tremendous competitive rivalry in the car
market. Competition is increasing almost daily, with new entrants coming into the
market from China, South Korea and new plants in Eastern Europe. The company is
also exposed to any movement in the price of raw materials such as rubber, steel and
fuel.

Mission Statement
Leadership Maintain our relationship of the Indian industry Throughout the
continuous modernization and expansion of our Manufacturing facilities and
activities and through establishment of a wide and efficient marketing network
Profitability-Achieve a fair and reasonable return on capital by promoting
productivity throughout the company
Growth- Ensure a steady growth of business by strengthening our position in the
cement industry.
Quality- Maintain high quality of our products and services and ensure their
supply their supply at fair prices.
Equity- Promote and maintain fair industrial relations and an environment for
the effective involvement, welfare, and development of staff at all levels.
Pioneering- Promote research and development efforts in the areas of product
development and energy, and fuel conservation and to innovate and optimize
productivity.

PORTERS 5 FORCES

MODEL

The model of pure competition implies that risk adjusted rates of return should be
constant across firms and industries . Michael Porter provided a framework that
models an industry as being influenced by five forces . the strategic business manager
seeking to develop an edge over rival firms can use this model to better understand
the industry context in which the firm operates.

Tata Motors also analysis on this theory . According to it

Since there is stiff

competition in the textile industry with a lot of key players already playing business
so it posses a serious threat to Tata Motors but it has stood still and has still shown
good results.
Since the textile industry and the economy has a whole are both growing , there are
numerous opportunities for new entrants to enter in the market but it would be
seriously difficult for it to launch itself.
Since there are not much substitute products for clothes and other products that Tata
Motors built , therefore it doesnt impose much threat to it , but researches can do
great guns and thus create problem for Tata Motors
Since Tata Motors is a big manufacturer itself for its products therefore there is not
much pressure from the countable suppliers it has.

Market segmentation
It is the act of dividing a market into distinct groups of buyers who require
separate products.
Its market research division has segmented consumers on the basis of
following:
1. Geographic variables
2. Demographic variables
3. User status and lifestyle

Market targeting
Act of developing measures of segment attractiveness.
Involves evaluating various market segments.
It targets different segments of population of all categories of age groups.
Also targets the population outside India.

Market positioning
Indias largest company.
TATA MOTORS is market capital and no.5 in sales and profit.

TATA MOTORS is the market leader.

They are the highest contributor in revenue.

Marketing strategy adopted


Advertisement
1. Tata Motors
2. Radio
3. Internet
4. Newspaper/magazines
5. Hoardings

MARKETING STRATEGIES

INTRODUCTION AND IMPORTANCE OF MARKETING


STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its


limited resources on the greatest opportunities to increase sales and achieve a
sustainable advantage. A marketing strategy should be centred on the key concept
that customer satisfaction is the main goal. Marketing strategy is a method of focusing
an organization's energies and resources on a course of action which can lead to
increased sales and dominance of a targeted market niche. A marketing strategy
combines product development, promotion, distribution, pricing, relationship
management and other elements; identifies the firm's marketing goals, and explains
how they will be achieved, ideally within a stated timeframe. Marketing strategy
determines the choice of target market segments, positioning, marketing mix, and
allocation of resources. It is most effective when it is an integral component of overall
firm strategy, defining how the organization will successfully engage customers,
prospects, and competitors in the market arena. Corporate strategies, corporate
missions, and corporate goals. As the customer constitutes the source of a company's
revenue, marketing strategy is closely linked with sales. A key component of
marketing strategy is often to keep marketing in line with a company's
overarching mission statement.

Importance of Marketing Strategy


The importance of marketing plans outweighs any other decision that can be
taken in the realm of marketing strategies. Yes, marketing plan is essential to
grab the market segment before any other player captures the market. What
are the target groups? Which segment of the market presents higher revenue
generating opportunities? These are some of the questions that marketing
teams ponder over, in the pursuit of achieving a good plan.
This is where the importance of marketing research comes into picture.
The market research team analyzes and understands the requirements of the
consumers. Conducts polls and researches and comes up with data and
statistics that help to logically target a market.
Another factor that governs the marketing plans is the marketing mix
elements. Marketing mix elements are the sets of factors that help firms to
achieve their targets of reaching the products to the consumers and also
achieve organizational objectives. The importance of marketing mix is, that it
takes

into

TATA

MOTORS

ount

the

four P's of

marketing,

are Product, Price, Promotion and Place of distribution.

MARKETING MIX OF THE COMPANY

that

MARKETING MIX

The term "marketing mix" was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further and
coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy,
proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is
explained in most marketing textbooks and classes.
Four P's
Elements of the marketing mix are often referred to as 'the four Ps':

Product - A tangible object or an intangible service that is mass produced or


manufactured on a large scale with a specific volume of units. Intangible
products are service based like the tourism industry & the hotel industry or
codes-based products like cellphone load and credits. Typical examples of a
mass produced tangible object are the car and the disposable razor. A less
obvious but ubiquitous mass produced service is a computer operating system.
Packaging also needs to be taken into consideration. Every product is subject
to a life-cycle including a growth phase followed by an eventual period of
decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of
the strategy to differentiate from its competitors.

Price The price is the amount a customer pays for the product. It is
determined by a number of factors including market share, competition,
material costs, product identity and the customer's perceived value of the
product. The business may increase or decrease the price of product if other
stores have the same product.

Place Place represents the location where a product can be purchased. It is


often referred to as the distribution channel. It can include any physical store
as well as virtual stores on the Internet. Place is not exactly a physical store
where it is available Place is nothing but how the product takes place or create
image in the mind of customers. It depends upon the perception of customers.

Promotion represents all of the communications that a marketer may use in


the marketplace. Promotion has four distinct elements: advertising, public

relations, personal selling and sales promotion. A certain amount of crossover


occurs when promotion uses the four principal elements together, which is
common in film promotion. Advertising covers any communication that is
paid for, from cinema commercials, radio and Internet adverts through print
media and billboards. Public relations are where the communication is not
directly paid for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events. Word of mouth is any
apparently informal communication about the product by ordinary individuals,
satisfied customers or people specifically engaged to create word of mouth
momentum. Sales staff often plays an important role in word of mouth and
Public Relations (see Product above).

STP ANALYSIS OF THE COMPANY


Segmentation

TATA MOTORS has segmented its customer in the following ways: Understanding needs and preferences of consumers -- Having housing,
infrastructure, and commercial construction, as demand drivers, the company
analyze the needs and preferences of consumers in these sectors.
Grouping customers based on their needs and preferences -- Customers
with similar needs and preferences are included in this segment.
Targeting the segment that the company can best meet the needs and
preferences of - The Company targets the customers, of which it can meet the
needs and preferences. I.e. customer needs higher- strength or low price.
Branding the commodity -- Though being a commodity product, branding is
important for a company. The company positions its brand among Architects
and Builders rather than household individuals.
Provide required product to meet targeted customers' needs and
preferences -- Delivering up to the expectations of the targeted segment.

Targeting
Its customer base represents the masses of India - individual homebuilders in
small towns, rural and semi-urban India.
The company targets on the important projects like dams, roads in the country
It targets the Manufacturing companies like L&T etc
It Targets Indian Railways.
It targets an individual building his home(Retail Marketing)

Positioning
A good brand positioning help guide marketing strategy by clarifying the brands
essence but goals it help the consumer achieve and how it does so in a unique way.
The result of the positioning is the successful creation of a customer focused value
proposition, a cogent reason why the target market should buy the product.

BCG MATRIX

In BCG Matrix product or business unit are identified as Stars,


Cash Cow,Dogs, Question mark.
The Matrix can be explained are as follows.
Stars (high growth, high market share)
Stars are using large amounts of cash. Stars are leaders in the
business. Therefore they should also generate large amounts of
cash.
Stars are frequently roughly in balance on net cash flow.
However if needed any attempt should be made to hold your
market share in Stars, because the rewards will be Cash Cows if
market share is kept.
]
Cash Cows (low growth, high market share)
Profits and cash generation should be high. Because of the low
growth, investments which are needed should be low.

Cash Cows are often the stars of yesterday and they are the
foundation of a company.
Dogs (low growth, low market share)
Avoid and minimize the number of Dogs in a company.
Watch out for expensive rescue plans.
Dogs must deliver cash, otherwise they must be liquidated.
Question Marks (high growth, low market share)
Question Marks have the worst cash characteristics of all,
because they have high cash demands and generate low returns,
because of their low market share.
If the market share remains unchanged, Question Marks will
simply absorb great amounts of cash.
Either invests heavily, or sell off, or invest nothing and
generate any cash that you can. Increase market share or
deliver cash.

USP
The Unique Selling Proposition
(also Unique Selling Point or USP) is a marketing concept that
was first proposed as a theory to explain a pattern among
successful advertising campaigns of the early 1940s. It states
that such campaigns made unique propositions to the customer
and that this convinced them to switch brands. The term was
invented by Company. Today the term is used in other fields or
just casually to refer to any aspect of an object that differentiates
it from similar objects.

The USP of Tata Motors is


They say there are four M?s of advertising, which are Mission,
Money, Media and Message; the most important part is the
message execution and image building. Imagery is the kind of
associations a brand could get linked with over a period of time.

It has an impact on how consumers perceive the brand and how


they will react to it in the long run. The ultimate goal of the
advertiser is to ensure that his/her idea marries the brand.

1. Designing a Customer Driven Marketing Strategy:

Their main strategy that they still follow today is the diversification of
products they offer.

TATA MOTORS ording to customers demand they make their strategies by


keeping following points in mind;

Which customer they will serve?

Which customer they will serve?

They serve their customers on the bases of income level, age through market
segmentation.

Their main segment which they has captured are combination of higher
incomes & dual career families.

How will they serve these customers?

They fulfill their customers demand through;

Value proposition
Positioning
Unique selling proposition (USP)

3. CAPTURE VALUE FROM CUSTOMER IN RETURN:

Committed to providing uncompromising product quality offering customers


the highest value for money & giving service that is warm, friendly &
personal.

They also follow social factors to maintain their image through corporate
social responsibility.

4. Designing a Customer Driven Marketing Strategy:

Their main strategy that they still follow today is the diversification of
products they offer.

TATA MOTORS ording to customers demand they make their strategies by


keeping following points in mind;

LEARNINGS

It was a great opportunity to carry a research project on such a reputed


organization, which gave me a good learning experience and knowledge about
the products and industry.

Another very crucial area that needs mention is the experience I gained while
talking to & interacting with people. This has been a truly enriching
experience because interacting with people with varied profiles helped in
enhancing my communication skills.

The project I was doing was going simultaneously with my job in Dainik
Jagran, so while doing this project I learned how to manage time in a most
effective manner.

RECOMMENDATIONS

Tata Motors should come with some less calorie products so that it does not
harm the growing children who like eating only junk food. It should come up
with more of products, which are nutritious because growing children are the
major customers of Tata Motors.

Tata Motors should first advertise and then come up with new products in the
outlets to create maximum recall in the mind of potential customer.

It should come up with some spicy items also to beat the competition from
other brands

CONCLUSION

Tata Motors has always been a key player in the real estate industery since its
formation .

The firm has risen in all aspects over the period of time . The decision of
going public was a wise one but perhaps the firm did not anticipate what the
future had in store for them and did not utilize the funds wisely .

The Company had also increased Paints prices by a great deal but was forced
to reduce them after the demand dissapeared .

Later on the firm has regained some strength and is all set for the future .

BIBLIOGRAPHY

Reference books:
Kothari. C. R., Research Methodology, New Age International (P) Limited,
New Delhi, 2006
Internet:
http://www.tata.com/0_careers/our_people/20020214_suman1.htm
http://www.tata.com/0_b_sectors/index.htm
http://www.cybersteering.com/auto_makers/telco/tata.html
http://www.tata.com/tata_engg/index.htm
http://www.tatainternational.com/automob_products.asp
http://www.tata.com/tata_engg/articles/index.htm
http://www.telcoindia.com/home.htm
http://www.tata.com/tata_engg/media/20020228.htm
http://www.tata.com/tata_engg/articles/2000106051indica2.htm
http://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htm
www.marutiudyog.com
www.hyudaimotorindia.com
www.autoweb.com

Magazines:
Auto Car 2005
Auto India January 2004.