1.

Product in the marketing mix of Tata Motors Tata has a very wide
range of products ithas , utility vehicles, Trucks, Commercial passenger
Carriers And Defence Vehicles
Trucks
Tata Novas Buses

TL 4×4 Winger

Magic

2. Price in the marketing mix of Tata Motors The prices of Tata motors
are generally affordable acceptable by the general public at large.
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.

Strengths in the SWOT analysis of Tata motors

1. The internationalization strategy so far has been to keep local managers
in new acquisitions, and to only transplant a couple of senior managers
from India into the new market. The benefit is that Tata has been able to
exchange expertise. For example after the Daewoo acquisition the Indian
company leaned work discipline and how to get the final product ‘right first
time.’
2. The company has a strategy in place for the next stage of its expansion.
Not only is it focusing upon new products and acquisitions, but it also has
a programme of intensive management development in place in order to
establish its leaders for tomorrow.
3. The company has had a successful alliance with Italian mass producer
Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat
in terms of production and knowledge exchange. For example, the Fiat
Palio Style was launched by Tata in 2007, and the companies have an
agreement to build a pick-up targeted at Central and South America.
Weaknesses in the SWOT analysis of TATA Motors
1. 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.
2. Despite buying the Jaguar and Land Rover brands; Tata has not got a
foothold in the luxury car segment in its domestic, Indian market. 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?
3. One weakness which is often not recognized is that in English the word
‘tat’ means rubbish. Would the brand sensitive British consumer ever buy
into such a brand? Maybe not, but they would buy into Fiat, Jaguar and
Land Rover

Opportunities in the SWOT analysis of TATA Motors

1. 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. Two of the World’s luxury car brand have been added to its
portfolio of brands, and will undoubtedly off the company the chance to
market vehicles in the luxury segments.
2. Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle
business in 2004 for around USD $16 million.
3. Nano is the cheapest car in the World – retailing at little more than a
motorbike. Whilst the World is getting ready for greener alternatives to
gas-guzzlers, is Nano the answer in terms of concept or brand?
Incidentally, the new Land Rover and Jaguar models will cost up to 85
times more than a standard Nano!
4. The new global track platform is about to be launched from its Korean
(previously Daewoo) plant. Again, at a time when the World is looking for
environmentally friendly transport alternatives, 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, South Korea
and China will have a thirst for low-cost passenger and commercial
vehicles. These are the opportunities. 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.
5. The range of Super Milo fuel efficient buses are powered by super-
efficient, eco-friendly engines. The bus has optional organic clutch with
booster assist and better air intakes that will reduce fuel consumption by
up to 10%.
Related: SWOT Analysis of Dyson

Threats in the SWOT analysis of TATA Motors

1. Other competing car manufacturers have been in the passenger car
business for 40, 50 or more years. Therefore Tata Motors Limited has to
catch up in terms of quality and lean production.
2. Sustainability and environmentalism could mean extra costs for this low-
cost producer. This could impact its underpinning competitive advantage.
Obviously, as Tata globalises and buys into other brands this problem
could be alleviated.
3. Since the company has focused upon the commercial and small vehicle
segments, it has left itself open to competition from overseas companies
for the emerging Indian luxury segments. For example ICICI bank and
DaimlerChrysler have invested in a new Pune-based plant which will build
5000 new Mercedes-Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford, Honda and Toyota. In fact
the entire Indian market has become a target for other global competitors
including Maruti Udyog, General Motors, Ford and others.
4. Rising prices in the global economy could pose a threat to Tata Motors
Limited on a couple of fronts. The price of steel and aluminum is increasing
putting pressure on the costs of production.
Marketing Strategies of Tata motors
1. 1. 1 MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF UNDER GRADUATE DEGREE MARKETING STRATEGIES OF
SUBMITTED BY: ANUJ GUPTA BBA (2014-2017) ROLL NO. : E-65 Faculty Guide: Ms.
RajshreeSingh Student Name: Anuj Gupta Designation: AssistantProfessor Enrollment
No.: A3906414554 Course & Batch: BBA (G)/2014-17 Amity University, Uttar Pradesh
2. 2. 2 CERTIFICATE OF ORIGIN This is to certify that I, Mr. Anuj Gupta, a student of
under graduate degree in BBA (2014-2017), Amity School of Business, Noida has
worked under the able guidance and supervision of Ms. Abhilasha Singh, Assistant
professor. This Minor Project report has the requisite standard for the partial fulfilment the
Under Graduate Degree in Business Administration. To the best of our knowledge no
part of this report has been reproduced from any other report and the contents are based
on original research. I am aware that in case of non-compliance, Amity School of
Business is entitled to cancel the report. Signature Name of Student: Anuj Gupta
Enrollment No.: A3906414554 Signature of Project Coordinator Signature of Faculty
Guide
3. 3. 3 Acknowledgment I express my sincere gratitude to my faculty guide, Ms. Rajshree
Singh, Assistant Professor, for her able guidance, continuous support and cooperation
throughout my project, without which the present work would not have been possible.
Signature
4. 4. 4 Research Methodology 1. Research objectives i. To study the various marketing
strategies employed by TATA Motors ii. To recommend any alternative actions that can
be taken by the company 2. Research design Research design refers to the manner of
conducting the research. The design of my research is exploratory, which is based on
secondary data. 3. Research limitations Despite the fact that I've attempted to scrutinize
on the said goals however much as could be expected, it experiences certain constraints.
The essential constraint is the time allotment, which because of being short, the
exploration couldn't have been sufficiently exhaustive. The other is that because of the
sources being auxiliary in nature, the data is pretty much in view of suspicions.
5. 5. 5 TABLE OF CONTENTS Chapter Number Subject Page Number 1. Research
Methodology 4 2. Introduction 6 3. Company History 11 4. SWOT Analysis 22 5. 4P’s of
Tata Motors 25 6. STP Analysis 29 7. Tata Motors vs. Competitors 32 8. Findings 35 9.
Suggestions 36 10. Conclusion 36
6. 6. 6 Introduction The Indian auto industry is one of the largest in the world with an annual
production of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 percent
over the last year. The automobile industry accounts for 7.1 per cent of the country's
gross domestic product (GDP). The Two Wheelers segment with 81 per cent market
share is the leader of the Indian Automobile market owing to a growing middle class and
a young population. Moreover, the growing interest of the companies in exploring the
rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV)
 segment has 13 per cent market share. India is also a prominent auto exporter and has
strong export growth expectations for the near future. In FY 2014-15, automobile exports
grew by 15 per cent over the last year. In addition, several initiatives by the Government
of India and the major automobile players in the Indian market are expected to make
India a leader in the Two Wheeler (2W) and Four Wheeler (4W) market in the world by
2020. Market Size The industry produced a total 14.25 million vehicles including PVs,
commercial vehicles (CVs), three wheelers (3W) and 2W in April-October 2015 as
against 13.83 in April-October 2014, registering a marginal growth of 3.07 per cent year-
on-year. The sales of PVs grew by 8.51 per cent in April-October 2015 over the same
period last year. The overall CVs segment registered a growth of 8.02 per cent in April-
October 2015 as compared to same period last year. Medium & Heavy Commercial
Vehicles (M&HCVs) registered very strong growth of 32.3 per cent while sales of
7. 7. 7 Light Commercial Vehicles (LCVs) reduced by 5.24 per cent during April-October
2015 year-on-year. In April-October 2015, overall automobile exports grew by 5.78 per
cent. PVs, CVs, 3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59
per cent and 3.22 per cent respectively in April-October 2015 over April- October 2014.
Investments In order to keep up with the growing demand, several automakers have
started investing heavily in various segments of the industry during the last few months.
The industry has attracted foreign direct investment (FDI) worth US$ 13.48 billion during
the period April 2000 to June 2015, according to data released by Department of
Industrial Policy and Promotion (DIPP). Some of the major investments and
developments in the automobile sector in India are as follows: ● Global auto major Ford
plans to manufacture in India two families of engines by 2017, a 2.2 litre diesel engine
codenamed Panther, and a 1.2 litre petrol engine codenamed Dragon, which are
expected to power 270,000 Ford vehicles globally. ● The world’s largest air bag suppliers
Autoliv Inc, Takata Corp, TRW Automotive Inc and Toyoda Gosei Co are setting up
plants and increasing capacity in India. ● General Motors plans to invest US$ 1 billion in
India by 2020, mainly to increase the capacity at the Talegaon plant in Maharashtra from
130,000 units a year to 220,000 by 2025. ● US-based car maker Chrysler has planned to
invest Rs 3,500 crore (US$ 525 million) in Maharashtra, to manufacture Jeep Grand
Cherokee model.
8. 8. 8 ● Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capacity to 20,000 units per annum. ●
Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW) local unit has
announced to procure components from seven India-based auto parts makers. ●
Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in France-based
Peugeot Motocycles (PMTC). Government Initiatives The Government of India
encourages foreign investment in the automobile sector and allows 100 per cent FDI
under the automatic route. Some of the major initiatives taken by the Government of
India are: ● Government of India aims to make automobiles manufacturing the main
driver of ‘Make in India’ initiative, as it expects passenger vehicles market to triple to 9.4
million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26. ● In the
Union budget of 2015-16, the Government has announced to provide credit of Rs
850,000 crore (US$ 127.5 billion) to farmers, which is expected to boost the tractors
segment sales. ● The Government plans to promote eco-friendly cars in the country i.e.
CNG based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5
per cent ethanol blending in petrol. ● The government has formulated a Scheme for
Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India, under the
National Electric Mobility Mission 2020 to encourage the progressive induction of reliable,
affordable and efficient electric and hybrid vehicles in the country.
9. 9. 9 ● The Automobile Mission Plan (AMP) for the period 2006–2016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the well-
established Regulatory Framework under the Ministry of Shipping, Road Transport and
Highways, plays a part in providing a boost to this sector. Road Ahead India’s automotive
industry is one of the most competitive in the world. It does not cover 100 per cent of
technology or components required to make a car but it is giving a good 97 per cent, as
highlighted by Mr Vincent Cobee, Corporate Vice- President, Nissan Motor’s Datsun.
 Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four
million units by 2020, up from 1.97 million units in 2014-15. The Indian automotive sector
has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65
million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product,
as per the Automotive Mission Plan 2016-26 prepared jointly by the Society of Indian
Automobile Manufacturers (SIAM) and government.
10. 10. 10
11. 11. 11 TATA MOTORS LTD. COMPANY HISTORY Tata Motors Ltd is India's largest
automobile company. The company 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. They are the world's fourth largest
truck manufacturer, and the world's second largest bus manufacturer. The company is
engaged in the development, designing, manufacturing, assembling and sale of vehicles,
including financing thereof, as well as sale of related parts and accessories. They
manufacture commercial vehicle, three passenger vehicle, truck and bus. They have a
portfolio of automotive products, ranging from sub-1 ton to 49 ton gross vehicle weight
(GVW), trucks (including pickup trucks) and from small, medium, and large buses and
coaches to passenger cars, including the car, the Tata Nano. The company's segments
include automotive, and others, which include information technology (IT) services,
construction equipment manufacturing, machine tools and factory automation solutions,
high-precision tooling and plastic and electronic components for certain applications, and
investment business. The company's passenger cars include the Indica, the Indica Vista,
the Indigo and the Indigo Marina. Jaguar produces four car lines: XK, XF, XJ and X-Type.
They
12. 12. 12 manufacture a number of utility vehicles (UV), including the Sumo, and the sports
utility vehicle (SUV), Tata Safari. Also, they manufacture a variety of light commercial
vehicles (LCVs), including pickup trucks, trucks and buses with GVW of between 0.7 ton
and 7.5 tons. This also includes the Ace, a mini-truck with a 0.7 ton payload, the Magic, a
passenger variant for commercial transportation and the Winger. They also manufacture
a variety of medium and heavy commercial vehicles (M&HCVs), which include trucks,
buses, dumpers and multi-axled vehicles with GVW of between 9 tons to 49 tons. The
company's manufacturing plants are situated at Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka)
and Sanand (Gujarat). Through their subsidiaries and associate companies, the company
has operations in the UK, South Korea, Thailand and Spain. Tata Motors Ltd was
incorporated in the year 1945 with the name Tata Engineering and Locomotive Co Ltd for
manufacturing locomotives and other engineering products. In the year 1948, the
company introduced steam road roller in collaboration with Marshall Sons (UK). In the
year 1954, they made collaboration with Daimler Benz AG, West Germany for
manufacturing medium commercial vehicles. In the year 1959, they set up a Research
and Development Centre at Jamshedpur. In the year 1961, they started to export their
products and the first truck being shipped to Sri Lanka. In the year 1966, the company
set up the Engineering Research Centre at Pune to
13. 13. 13 provide impetus to automobile Research and Development. In the year 1977, they
manufactured first commercial vehicle in Pune. In the year 1983, they commenced
manufacturing of Heavy Commercial Vehicle. In the year 1985, the company produced
first hydraulic excavator in collaboration with Hitachi. In the year 1986, they produced the
indigenously designed light commercial vehicle Tata 407 followed by 608. In the year
1989, they introduced third LCV model, Tata Mobile 206. In the year 1991, the company
launched first indigenous passenger car, Tata Sierra and in the next year, they launched
Tata Estate. In the year 1993, the company signed a joint venture agreement with
Cummins Engine Co. Inc. for the manufacture of high horsepower and emission friendly
diesel engines. In the year 1994, the company launched Tata Sumo and LPT 709. During
the year, the company signed a joint venture agreement with Daimler - Benz / Mercedes -
Benz for manufacture of Mercedes Benz passenger cars in India. Also, they signed a
joint venture agreement with Tata Holset Ltd, UK for manufacturing turbochargers to be
used on Cummins engines. In the year 1995, they launched Mercedes Benz car E220
 and in the next year, they launched Tata Sumo deluxe. In the year 1997, the company
launched Tata Sierra Turbo and in the next year, they launched Tata Safari and Indica in
the market. In the year 2000, they launched Indica 2000 and CNG buses. In the year
2001, they launched Indica V2, CNG Indica and Tata Safari EX. In the year 2002, the
company signed a product agreement with MG Rover of the UK. Also, they launched
Petrol version of Indica V2, EX series in Commercial vehicles, Tata Sumo Series and
Tata Indigo. In the
14. 14. 14 year 2003, they launched Tata Safari Limited Edition CityRover, 135 PS Tata
Safari EXi Petrol and Tata SFC 407 EX Turbo in the market. In July 29, 2003, the name
of the company was changed from Tata Engineering Co Ltd to Tata Motors Ltd. In the
year 2004, the company acquired Daewoo Commercial Vehicle Company and renamed it
as Tata Daewoo Commercial Vehicle Co. Ltd. This company launched the heavy duty
truck 'NOVUS' in Korea. Also, the company launched Tata Indica V2, Tata LPT 909 EX,
Sumo Victa and Indigo Marina during the year. In the year 2005, the company acquired
21% stake in Hispano Carrocera SA, Spanish bus manufacturing Company. The
company launched branded buses and coaches, namely Starbus and Globus in the
market. Also, they launched Tata Ace,•Indigo SX series, Indica V2 Turbo Diesel, Tata TL
4X4 and Tata Novus. During the year, the company inaugurated a new factory at
Jamshedpur for Novus. Also, they unveiled Tata Xover at the 75th Geneva Motor Show.
In the year 2006, the company made a joint venture with Marcopolo, Brazil for
manufacturing fully built buses & coaches for India & markets abroad. They launched
Indica V2 Xeta and new Indigo range. Also, they unveiled new long wheel base premium
Indigo & X-over concept at Auto Expo 2006. In the year 2007, the company and Thonburi
Automotive Assembly Plant Co. (Thonburi) formed a joint venture company in Thailand to
manufacture, assemble and market pickup trucks. They inaugurated Tata-Fiat plant at
Ranjangaon. They launched long wheel base Indigo XL, Tata Spacio, Magic, Winger,
Sumo Victa Turbo DI, Indica V2 Turbo with dual airbags & ABS and Safari DICOR 2.2
VTT range.
15. 15. 15 During the year 2007-08, the company unveiled the TATA Nano, the world's least
expensive car at the Auto Expo 2008 in New Delhi. Subsequently, the car was also
unveiled at the Geneva Motor Show and received international acclaim. They
commenced production of TATA Ace from their manufacturing facility at Uttarakhand
during the year. During the year, the company developed new products for the M&HCV
passenger carrier sub-segment and displayed in the Auto Expo 2008, a 28 seater bus
and an air conditioned low floor bus developed through their joint venture - Tata
Marcopolo Motors Ltd. In the LCV segment, the company introduced two new products -
Magic and Winger, which hold a strong potential to shape the future of commercial
passenger transportation in India. Further, the company unveiled the 1 Ton and CNG
variant of Ace, Cargo Panel van, Xenon XT - a lifestyle pickup truck and Winger
Executive office concept vehicle in the Auto Expo 2008. They showcased their new range
of tactical and armoured vehicles for military and paramilitary forces in the Defence Expo
2008. These include Tata Light Specialist Vehicle, Light Armoured Troop Carrier, Tata
8x8 HMV and the armoured Tata Safari. During the year 2007-08, the company signed
an agreement with Fiat Group automobiles SpA Italy and Fiat India Automobiles Pvt Ltd
(FIAPL) for establishment of joint venture to manufacture passenger cars engines and
transmissions at Ranjangaon in India. They sold 15% stake each, in their subsidiary
companies, HV Axles Ltd (HVAL) and HV Transmissions Ltd (HVTL). In March
16. 16. 16 2008, the Company introduced Tata Xenon- 1 Ton pickup truck in Thailand
through its subsidiary Tata Motors (Thailand) Ltd. In June 2, 2008, the company acquired
the businesses of Jaguar and Land Rover (a part of Premier Automotive Group of Ford
Motor Co.) for USD 2.3 billion. Jaguar and Land Rover are in the business of
development, manufacture and sale of high end luxury cars and SUVs respectively. The
acquisition includes the ownership of three major manufacturing plants, two advanced
design centres in UK a worldwide sales network, Intellectual Property Rights (including
perpetual royalty free licenses) and Brands and Trademarks. During the year 2008-09,
the company partially divested their stake in Tata AutoComp Systems Ltd an associate
company, from 50% to 26%. Also, they sold their investment in Tata Teleservices Ltd.
 During the year, the company launched 28 new commercial vehicles. Among the new
products launched during the year were LPT 3118 - a truck with lift axle, CNG variants of
the Ace, Magic and Xenon, new range of LCV buses manufactured by Tata Marcopolo
Motors and the ICV 909 bus. The company also completed the execution of their first
order of 650 low floor buses to Delhi Transport Corporation (DTC). They have also
bagged a second order of 1625 similar buses from DTC to be executed in financial year
2009-10, the total order value of which is over Rs 2200 crore. In May 2009, they also
unveiled the World Truck range of their next generation heavy trucks.
17. 17. 17 During the year 2009-10, the company acquired 79% shares in Hispano
Carrocera, S A by way of exercise of the existing call option, through mutual agreement
with the other shareholder, Investalia S. A., Spain, for a consideration of Euro 2 million
(Rs 1371 lakh). Consequently, Hispano Carrocera, S A has become a 100% subsidiary
of the company. Also, the company sold 20% stake in Telco Construction Equipment
Company Ltd (Telcon) to Hitachi Construction Machinery Co Ltd. The company now
holds 39.75% stake in Telcon. During the year, the company launched the new heavy
truck range Prima. Also, they launched the new range of buses (based on the Prima
platform with bodies being made by Tata Marcopolo displayed at the Delhi Auto Expo in
January 2010). In small commercial vehicles, they launched the Ace EX and Super Ace.
In June 2010, the company inaugurated the factory for the Nano mini car at Sanand, in
the western state of Gujarat. The factory is having an initial capacity of producing
250,000 cars per year. During the year 2010-11, the company launched the Aria, a
premium crossover with high-end features such as 4x4, Torque on Demand, ESP, six
airbags. They launched BS IV compliant variants of the Indica and the Indigo CS, the
Indica eV2 and Indigo eCS with segment leading fuel efficiencies. These vehicles are
powered by the Company's 1.4L CRAIL engine. The company Elan, a high end variant of
the Indigo Manza sedan. They launched Venture, a Multi Purpose Vehicle (MPV) on the
Ace platform. The company expanded the Prima range launched during the previous
year with the introduction of the Prima Construck range of tippers in the market. Also, the
company launched the all new Jaguar XJ, the new 4.4 V8 diesel Range Rover and the
new 2.2 diesel
18. 18. 18 Land Rover. In September 2010, the company acquired 80% stake in Trilix Srl.,
Turin (Italy), a design and engineering company. The company increased their
shareholding in Tata Precision Industries Pte. Ltd from 49.99% to 78.39% by subscribing
to an additional 28.4% share of Tata Precision Industries Pte Ltd, Singapore on February
15, 2011. Tata Precision Industries Pte Ltd holds 100% shares of Tata Engineering
Services Pte Ltd, hence Tata Engineering Services Pte Ltd also became a subsidiary.
19. 19. 19
20. 20. 20
21. 21. 21
22. 22. 22 SWOT Analysis Strengths: ● The brand is very well established. ● Tata’s
management is strengthened by the collective experience of its partners and acquired
companies. ● The company has a strategy in place for the next stage of its expansion.
Not only is it focusing upon new products and acquisitions, but it also has a programme
of intensive management development in place in order to establish its leaders for
tomorrow. ● Creation of an entirely new segment with TATA NANO. ● Acquisition of
Jaguar and Land Rover. 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. ● Tata has not got a foothold in the
luxury car segment in its domestic market. ● Positioning of TATA NANO . ● One
weakness which is often not recognised is that in English the word 'tat' refers to items
which are cheap and of bad quality. A brand sensitive British consumer might think twice
before going for such a brand. Opportunities: ● The Nano could sell well in other
geographic markets like that of China. ● Jaguar and Land Rover provide Tata with an
opportunity to establish itself in
23. 23. 23 the luxury segment in the upcoming years. ● No major player in the electric car
segment in the domestic market so ‘Indica Vista electric’ and ‘Megapixel’ could just be
the right answer for Indian consumers. Threats: ● Maruti Suzuki and Hyundai are major
 rivals in the small car market. ● Powerful competitors for the luxury market including
Honda, Toyota, Ford and Volkswagen are beginning to push into the Indian market. ●
Tata’s competitive price advantage will be under pressure as environmental regulations
are tightened and material costs increase.
24. 24. 24 4P’s of Tata Motors Product ● Tata has a very wide range of products. It has
passenger cars, utility vehicles, Trucks, Commercial passenger Carriers and Defence
Vehicles. ● Brand : The products of Tata Motors have many special characteristics to
them, but when consumers think of it, they not only think of its features, but they may
also associate it with quality, performance, class. All of these meanings have been added
to the product by advertising. 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. Tata Motors have been successful in creating and maintaining
a professional brand image. ● Packaging : A vehicle cannot have a material packaging.
Here, packaging refers to and effective assembly of features. Tata Motors provide many
innovative features to suit the target customers and the product. E.g. 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,
25. 25. 25 Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department
continuously strives to bring new innovations in their product. Tatas have an industrial
experience of over 100 years and they are well known with the Psychology of Indian
customers, who desire more at less price. This experience has helped them to develop
products which fulfill the expectations of Indian consumers. ● Quality Control : Tata
Motors have their Quality Control standards and the QC Dept. ensures that the customer
does not face any inconveniences of a defective product. Price ● 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 ○ 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.
26. 26. 26 Place ● Channels of Distribution : In case of vehicles, dealership method of
distribution and sales is generally adopted. Tata Motors have also adopted dealership
method of distribution of its products. The dealers purchase products from the Co. at a
negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these
prices. As the Co. deals in commercial and passenger vehicles, there may be a single or
distinct dealerships to market its commercial and passenger vehicles in a town. However,
if there is a single dealership appointed, then the commercial and passenger vehicles are
managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively.
Tata Motors have contracts with the Government of India and it supplies buses and
passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities of vehicles
are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of
these are looked after by the Co. itself. ● Physical Distribution : The commercial vehicles
are manufactured at Jamshedpur,Lucknow and Pantnagar whereas the passenger
vehicles are manufactured at Pune plant. From the plant, the finished product is
transported to the dealerships. The nation-wide dealership, sales, services and spare
parts network comprises over 2,000 touch points. The dealerships are strategically
located in the target and potential markets to ensure efficient and timely availability of its
products in the market. Promotion ● Personal Selling : There is minimal personal selling
involved. The Sales
27. 27. 27 Officers at the dealerships collect prospective customer databases and perform
cold calling to attract customers. ● Advertising : Advertising is a form of commercial mass
communication designed to promote the sale of a product or service. Tata Motors is
responsible for the advertising of its products. The dealer does play any role in the
advertising. The various media used for advertising are T.V., Newspapers, Magazines,
 Hoardings, Internet etc. The dealer conducts point-of-purchase displays to advertise the
products. The advertisements done by the Co. help the dealer to capitalize on the
market. ● Sales Promotion : The purpose of sales promotion is to supplement and
coordinate advertising and personal selling; Sales promotions are designed to persuade
consumers to purchase immediately by providing special incentives such as cash
rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during
festivals such as festive discounts during Diwali. ● Public Relations : Public Relations is a
management function that creates, develops, and carries out policies and programs to
influence public opinion or public reaction about an idea, a product, or an organization.
The Co. takes serious measures to maintain good public relations. The Co. follows
business ethics to ensure that the customer is satisfied and receives good service
whenever and wherever he desires.
28. 28. 28 STP Analysis Segmentation ● Segmenting is the process of dividing the market
into segments based on customer characteristics and needs. ● The main activity
segmenting consists of four sub-activities. These are: 1. determining who the actual and
potential customers are 2. identifying segments 3. analyzing the intensity of competitors
in the market 4. selecting the attractive customer segments. ● The need for segmenting a
market is based on the fact that no market is homogeneous. For one product the market
can be divided in different customer groups. The variables used for this segmenting in
these groups are usually geographical, psycho-graphical, behavioral and demographic
variables. This results in segments which are homogeneous within and heterogeneous
between each other. When these segments are known, it is important to decide on which
market to target. ● TATA Motors basically segments the market based on the following
markets :- ○ Geography - Whether the customers live in urban cities or suburban areas ○
Income ○ Uses - Commercial, Private etc.
29. 29. 29 Targeting ● Targeting is the process of choosing the most attractive segment on
which the product or service is to be marketed. After the most attractive segments are
selected, a company should not directly start targeting all these segments -- other
important factors come into play in defining a target markets. ● The four sub activities
within targeting are: ○ defining the abilities of the company and resources needed to
enter a market ○ analyzing competitors on their resources and skills ○ considering the
company’s abilities compared to the competitors' abilities ○ deciding on the actual target
markets. ● The major target segments of Tata Motors are:- ○ Low Income and Middle
Income groups ○ People living in cities ○ Commercial use vehicles Positioning ● When
the list of target markets is made, a company might want to start on deciding on a good
marketing mix directly. But an important step before developing the marketing mix is
deciding on how to create an identity or image of the product in the mind of the customer.
Every segment is different from the others, so different customers with different ideas of
what they expect from the product.
30. 30. 30 ● The present situating of TATA Motors is "a car organization with reasonable
costs that you can depend on for its item execution, morals and, and profound quality".
31. 31. 31 Tata Motors vs. Competitors
32. 32. 32
33. 33. 33
34. 34. 34 Findings 1. Tata Motors is the third largest company in the passenger vehicles
segment and the leader in the commercial vehicle segment. 2. The share of Tata Motors
in passenger vehicles segment is low as compared to majot competitors Maruti and
Hyundai, the former being the market leader. This maybe attributed to a number of
factors:- a. Better products and services by competitors b. Better marketing strategies of
competitors 3. However, the sales of Tata Motors in the passenger vehicle segment are
slowly increasing. This maybe because of:- a. Customers preferring pocket friendly cars
that provide comfort to costly cars b. Tata Emerging as a viable alternative to market
leaders Maruti and Hyundai. 4. On the other hand, the sales of Tata Motors in the
commercial sector, where it is a market leader, is slowly decreasing. It is losing out to its
main competitor, Mahindra & Mahindra. 5. The two wheeler market is still unexplored by
Tata Motors, so it is presents a new market.
 35. 35. 35 Suggestions 1. Find new and innovative ways to retain leadership in commercial
segment. 2. Two-wheeler presents a large market with unexplored potential. The
company should consider entering that market. Conclusion As per the findings, the
marketing strategies of Tata Motors are fairly successful. In recent years however, they
have become even more so successful, especially in the assenger vehicle sector. This
shows that the customers are beginning to see Tata as a viable and good alternative to
the market leaders. However, the market share of Tata in the commercial vehicle sector,
where it is the leader, is slowly decreasing and the company is losing its foothold. This is
mainly because of saturation of the segment for the company and its shifted focus
towards passenger vehicles.

he overall Commercial Vehicles segment registered a growth of 17.55 percent in April- March 2019
as compared to the same period last year. Medium & Heavy Commercial Vehicles (M&HCVs)
increased by 14.66 percent and Light Commercial Vehicles grew by 19.46 percent in April-March
2019 over the same period last year.

DATA ON CVI

If India Auto Inc’s FY2019 sales, at 26,267,783 units (+5.15%) had a little bit of shine in them,
then it was thanks to the robust performance of the commercial vehicle (CV) sector. While the
passenger vehicle (PV) and two-wheeler sectors faltered with single-digit growth, the CV sector seems
to have saved the blushes for the overall industry with strong sales in both the light commercial vehicle
(LCV) and medium and heavy commercial vehicle (M&HCV) segments. The critical goods carrier
sub-segments in both vehicle categories have delivered and how.

Importantly, the Indian domestic CV industry achieved a significant milestone of crossing 1 million unit
sales in a fiscal year for the first time. In FY2019, a total of 1,00,7,319 units were sold, with year-on-year
growth at a happy 17.5 percent. What helped the sector achieve the big number is all-time-high sales of
heavy-duty trucks.

The heavy truck segment, which is a cyclical business, always rapidly grows after experiencing a gradual
decline in a cycle. The previous sales peak of heavy trucks was recorded in FY2013 with sales of 299,334
units, which was followed by a steady decline in subsequent years. In FY2018, due to the low base as a result
of the implementation of BS IV norms, heavy truck sales rose sharply to 304,313 units, notching a new
benchmark.

The first nine months of FY2019 saw the M&HCV goods segment race ahead as a result of sustained
replacement demand, higher economic activities, government spend on the infrastructure sector. While the
next three months’ sales were a tad slow, the overall numbers for the fiscal were a new record high –351,128
units, up by 15 percent year on year. This clearly pegs India as one of the largest heavy truck markets globally
just behind China, surpassing Europe and the USA.

The goods carrier sub-segment, as against the passenger carrier in both LCV and M&HCV segments, are
typically the drivers of the economy. Not surprisingly, both have recorded handsome numbers in FY2019 –
LCVs at 564,409 units (+20.82%) and M&HCVs at 351,128 untis (+15.25%). While the LCVs outnumber
M&HCVs but the heavy trucks are not only the movers and shakers of the economy but notably offer high
profitability to their manufacturers.

Tata Motors maintains stranglehold on the sector

Two domestic OEMs dominate this most coveted market with a combined market share of nearly 84 percent
share, leaving barely 16 percent to the other 4 players to fight for. Tata Motors, The M&HCV goods carrier
market leader Market leader Tata Motors continues to retain its stranglehold over the sector – the company
sold a total of 181,265 trucks, albeit with flat YoY growth, to have a market share of 51.62 percent. It is to
be noted that at its peak in FY2012, Tata Motors had sold 186,298 units and had a bigger market share of
62 percent. This underlines the fact that over the past seven years, the company has shed nearly 10 percent
market share in the heavy truck goods carrier segment. Now the company is aggressively driving a new
product offensive as well as best-in-class products to further growth market share.
Tata Motors loss in market share over the year is Ashok Leyland’s gain. The Chennai-based CV maker,
which is now well established in the heavy-duty truck segment, recorded its highest-ever sales of 115,613
units, that gives it a market share of 32.9 percent. Compared this performance to FY2012, when Ashok
Leyland had sold 60,480 trucks and had a 20.2 percent market share.
VE Commercial Vehicles (VECV) and Mahindra & Mahindra are the two other players in the heavy truck
segment looking to grow their footprint in the market. VECV, which started off as a medium-duty player
way back in the 1980s and inked a partnership with global truck player Volvo in 2008, has evolved to become
a serious player. Holding on its promise of superior fuel economy, the most important aspect of a truck and
for its owners, the company has slowly expanded its product portfolio into the heavy truck segment. In
FY2019, with total heavy-duty truck sales of 39,230 units, it has an 11.17 percent share.
Similarly, Mahindra & Mahindra which crossed the landmark of 10,000 unit sales in a fiscal year has a
market share of 3 percent. The company is also focusing on expanding its products, services, and higher
technological products to emerge as a challenger brand to the existing players. The recent launches of the
Blazo and Furio truck brands are a case in point.
Daimler India Commercial Vehicles (DICV), the wholly- owned subsidiary of Daimler AG, the world’s
leading CV manufacturer is emerging as a strong players in the domestic market. The German truck maker
however does not report its sales figures to the Industry body SIAM. The company's India truck portfolio
starts from 9T GVW in the domestic markets, In calendar year 2018, DICV has sold a total of 22,532 trucks,
up by 35 percent. After initial challenges,it has reported a break-even in its truck business 6 years after
retailing its ‘BharatBenz’ trucks in India. The company is committed to the Indian market for a longer term
and continues to make sizeable investment products as well as an extensive service network. With more than
22,500 truck sales last year, India has becomes the fifth largest individual market for Daimler Trucks
worldwide, underlining the importance of DICV and BharatBenz for Daimler Trucks.