Segmentation:

Segmentation is based upon considerable evidence that a single marketing approach or formula
will not work for all members of the community to be served.
Geographic: The region of Tata motors is whole India with special focus on Type A and fast
growing Type B cities across India.

Demographic:

● Age → anybody of age between 18 to 50 years.

● Income → anybody with an income of over 4 lakh p.a.
● Occupation → millennial employed as professional, managers and those who want to buy
their first car.
● Social Class → Middle Class, Upper Middle, Lower Upper and Upper Upper.
Psychographic:

● Personality → Dreamers, those who want to achieve big, ambitious, price conscious, took
their first step towards success and value driven. Behavioral:
● Benefits → Quality, Style.
● User Status → Potential users and first time users.
● Readiness Stage → those who are aware, informed, interested and intend to bye.
Targeting:
Tata Motors has full market coverage in vehicle market as they covers market through
Differentiated Marketing. So Tata Motors typically creates more total sales. However it also
increases the cost of doing business. That’s why they lead to both higher sales and higher costs.

Full Market Coverage After introducing Tata Nano and acquiring Jaguar & Land Rover they have
full market coverage from Common men to Luxuries loving people. So, Tata Motors attempt to
serve all customer groups with all the products.

Positioning:
Tata Motors has many products for various sectors. Company has a product like Tata ACE which
is used as mini-truck. This product is mostly used at agriculture level. This product can carry
below 1 tone. So, in agriculture sector this mini-truck makes good image. Like that Tata Motors
introduced Tata Nano car for lower level people who cannot afford car but now they can buy a
car in Rs.1 lakh. It also makes a brand image on customer’s mind that Tata Motors is companies
where Customer gets that quality product at a cheaper price.

Product Strategy
To improve its productivity and profitability further and up its market share, Tata Motors is fine-
tuning its product strategy in line with transiting times.
With BS-VI coming in, operating economics become significant within a segment. In the small
Commercial Vehicle (CVs) category, we see movement happening towards higher payloads, as
it is being experienced in light CVs and Medium and Heavy Motor Vehicles (M&HCVs). The
development effort will span all the segments, especially the changing needs within those
segments. Tata Motors will try to bring products where there are gaps.
While the M&HCV, intermediate CV and small CV segments have grown in the industry and for
Tata Motors, the passenger vertical has de-grown. One of the reasons for this trend is that
almost 50 percent of the medium duty buses are bought by state transport undertakings, and
this year, this buying has been low and has impacted total business growth.

For Tata Motors, on the small vehicle side, where Magic and Iris are positioned, and controlled
by permits, these have witnessed a low growth trajectory. Therefore, the company’s overall
passenger vehicle business has declined, except the school bus division.
The company has also been pitching its electric buses in the limelight to boost this business,
and is undertaking trials of its 12-metre Star bus electric across the country. With 11 cities
coming up with tenders for electric buses under the FAME-I incentive scheme, Tata is gearing
up to bid for the tender to deploy them. They are equipped in terms of making electric buses.

The CV maker launched more than 35 vehicles in the current fiscal and by the end of the year
(2018-19) it will close with 50 launches. This will include besides new models, variants and
facelifts. The company has already announced plans to invest over Rs 1,500 crore (to be
funded by internal accruals) over the next 2 years, the chunk of which will be spent on meeting
BS-VI norms, new product development, and in productionising these vehicles. For instance, on
toolings and in debottlenecking of manufacturing activities. This capex is expected to
consolidate the CV business further.

On the export front, SAARC is its mainstay but Wagh said they also looking at ASEAN, Middle
East, North Africa, South Africa, and LATAM geographies, and will be entering them soon.
Products like the Ace, a MHCV, pickups, LCVs and a 3-axle HCV are doing well in some of
these regions. Last year, the company exported 62,000 vehicles and this number is expected to
rise steadily in the future.
Pricing Strategy
Customers of TATA Motors are the low, middle groups who are looking to switch to 4-wheeler
from 2-wheeler who are looking to purchase a car for a family purpose at affordable prices.
Customers of the brand also include youth and high-class business professional who is looking
for innovative, trending vehicles with world-class safety features.

The prices of Tata motors are generally affordable acceptable by the general public at large.
Tata always have something for the lower class people with Nano being their trump card. Giving
discount every month and special promotion for certain type of vehicle also one of the strong
strategy use by Tata Motors. Discount can be made from Company's profit or from dealer's
profit at certain range.

Pricing strategies:
● Penetration pricing
Penetration pricing is very helpful in market development, when organizations want to
expand the market then there is always a need of a factor that can make the people use
the product, and in economies like India, pricing is effective tool to play with, pricing can
be used as a tool that can make the people use the product and expand the market
boundaries, since their product was able to comply with all the safety standards, such
pricing strategy was obvious to be used in order to gain maximum acceptance from
general public, such price is also used when there is not visible different in product
features.
In case of TATA NANO, management used penetration pricing, since their objective was
market development by encouraging those people to use cars, who were previously
unable to buy cars because of high prices. They kept the prices of cars at very lower
side, around 100,000 rupees, and by charging such price they tried to penetrate in the
market, to reach to the consumer which were unable to afford the car thus creating their
kind of customers, by doing this they developed the market and instead of getting their
chunk from existing car users market, they increased the number of prospect consumer
and make low income people come into car users club.
● Low pricing policy with minimum profit margin.
● Though the one lakh price tag is not fixed by TATA group (in case of Tata Nano), it was
the word of mouth of people which fixed that range. This expectation of people creates a
big challenge for the company.

PROMOTION STRATEGY TATA MOTORS

Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form for TATA Engineering
and Locomotive Company) are an Indian multinational automotive manufacturing company and a
member of Tata group. Products offered by the company varies from cars, trucks, vans, coaches, military
vehicles, sports cars, buses and construction equipment.

TATA Motors is ranked as 226th in the Fortune Global 500 list of world’s biggest corporations as of 2016.

Tata Motors does not follow a single marketing approach or formula but it believes that all members of
the community should be served. Brand targets crowd from the rural part to the metros with its
offerings varying from NANO to Jaguar Land Rover segment.

It targets anyone above 4 Lakh p.a. salary, millennial employed as professionals, managers and all those
looking to switch from 2-wheeler to 4-wheeler. The age bracket for brand’s offering varies from 21-65
years with all Middle class. Upper middle class, High class and Affluent class in its target category.

Tata Motors offers products such as Tata ACE a mini truck mainly used for agriculture transport purpose,
Tata NANO for the middle class, Tata Indica and Indigo for commercial purposes and Jaguar in the high-
class segment thus creating the image that there’s something for everyone in its huge line of offerings.

Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy their needs
and wants. Based in India serves as a huge competition for the company as it offers the brand low-cost
labor base with the help which company not only targets the Indian market but also other emerging
markets with a huge range of economical segment vehicles. The products thus offered are
manufactured at a much lower cost and sold to new markets earning huge profits for the company.

The policies and regulations for the automobile sector in the country along with the least expensive
automobile parts availability are the some of the major conditions which help the brand in its business
expansion. The excellent innovation and research and development at TATA Motors have set up an
example for its competitors. With its various research centres across the country, the brand is working
on the improvement of the engine efficiency, design, style and instrumentation of vehicles.

For breaking into foreign markets TATA Motors has over the years acquired various foreign companies.
While the company has delivered amazing results in the domestic market, its subsidiary Jaguar land
rover has broken all the records of competitors as a top luxury automobile manufacturer. This mega
expansion mode calls for major product development, capacity capitalization and various national and
international mergers.

DISTRIBUTION STRATEGY
Headquartered in Mumbai Tata Motors (formerly known as TELCO acronym form for TATA Engineering
and Locomotive Company) are an Indian multinational automotive manufacturing company and a
member of Tata group. Products offered by the company varies from cars, trucks, vans, coaches, military
vehicles, sports cars, buses and construction equipment. TATA Motors is ranked as 226th in the Fortune
Global 500 list of world’s biggest corporations as of 2016.

With the imminent launch of the much awaited compact sedan, Zest and dynamic hatchback, Bolt, Tata
Motors in association with its channel partners, has announced a major recruitment drive, hiring a
workforce of over 3,000 staff across all Tata Motors full range dealerships nationally.

The company and dealers, will shortlist and recruit candidates who will be given roles such as Customer
Advisors, Team Leaders and Sales Managers, across more than 200 dealerships. Prospective candidates
will be extensively evaluated through a newly introduced recruitment process wherein they would
undergo aptitude and psychometric test. These tests, exclusively developed with help from experts in
this field, will measure the candidate’s orientation towards sales.

o enhance the customer engagement levels at the dealerships, Tata Motors has launched an initiative to
upgrade its dealer and service network to deliver customer desired world class showroom ambience,
purchase experience and after-market service. This is being achieved through technology-enabled
dealerships, providing all-encompassing sales, service and spares. The network, wherever required, is
being supplemented with an optimized network of standalone authorized service centres. The network’s
layout is based on a detailed study of the geographical concentration of existing and emerging customer
clusters.

The company is working very closely with dealerships to develop their HR guideline manual which covers
aspects like recruitment, training, rewards system and retention. After being selected, the new recruits
will undergo rigorous training process that will include absorbing in-depth product knowledge, soft skills,
sales and technical training. The revamped dealerships will be loaded with technology, wherein,
customers, with help of specially trained sales managers, will be able to configure their cars real time on
video walls using tablet PC’s.

Recommendations(only stp)
Based on the current status of the STP analysis, currently TATA motors has segmented as a
economical brand which is for the people who wants to buy their first car. TATA motors has
segmented economic class people in the whole India. To get more percentage of share in the
market TATA motors should launch different vehicles with sturdier designs. The upper-middle
class segment of the market generally excludes TATA motors from their preference of family
cars due to more economical look of the cars. The launch of the product TATA Nano was a big
loss for TATA motors, with a dream of making the dream of all the people who cannot afford 4-
wheeler true, but that did not succeed. However, the company is still trying to increase its market
share by the recent product launches like Tata Nexon, Tata Tiago, Tata Tigor, etc. TATA motors
has positioned itself in the various sectors such as CV, S-CV, Passenger cars, etc. Due to its
positioning in different sectors the company is not able to excel in any one particular sector
which other car manufactures such as Maruti Suzuki, Hyundai are doing and due to change in the
policy of CV the government has fixed the price of commercial vehicles and the CV segment for
Tata motors is not as profitable as it was before. The company should focus on its strong area
which is passenger cars and small commercial vehicles (tata ace and tata magic van). The
company should spend more time on the research and development of these sectors and should
increase the product availability in C type small cities.