Tata Motors

About the Business - Tata Motors is a part of the Tata Group which is an Indian automobile
manufacturer but sells its products around the world. The company's products include
automobiles and heavy machinery such as trucks, cars, coaches, military gears and buses. It
was founded as a manufacturer of locomotives in year 1945. Tata Motors have factories at
various locations around the globe such as India, Argentina, Spain, South Africa, the United
Kingdom and Thailand.
Tata Motors is one of four most popular car brands in India selling products such as compact,
midsize car, and utility vehicle segments. Moreover, Tata Motors contributed over 4 per
cent to India’s Gross domestic product in 2018, making it one of the most significant
contributors to its GDP.
The organization focuses on raising the level of life for all customers while also
establishing client trust. TATA Motors is ranked as 226 th in the Fortune Global 500 list of
world’s biggest corporations as of 2016
Differentiated targeting strategy is used by Tata Motors to target the customers and
satisfy their needs and wants.

Distribution Strategy of Tata Motors - In India, Tata Motors have more than 250
dealerships in more than 195 cities across 27 states and four Union Territories of India. It also
has dealerships in 26 countries. It holds a robust dealers network.
The climate of India’s car distribution network is unlike that of other advanced countries. These
differences can be seen in the percentage of dealers, the size and kind of dealers, dealer
functions, the manufacturer-dealer link, reservations, funding, the number of cars sold per
dealer, margins, and the market climate. Because customers have so many options, most
vehicle dealers will have to adapt to meet their needs.
Tata Motors owns India’s third-largest servicing and sales network. It has worked with
numerous distributors throughout India to supply its automobiles, and its service centers are
well-stocked with replacement parts and accessories. Tata Motors has an extensive distribution
network across India, and significant product releases are showcased in showrooms for
customers to try out. The group also sells used cars and offers services such as extended
warranties.
In its distribution process, it first ship the product to its depot, then it is shipped to a local
distributor. It is the distributor who sells the products like cars, gears etc. to customers. Tata
Motors also has carrying and forwarding agent (C&F) in some cases. These agents are the
suppliers for local distributors who get 2%-5% margin. While local distributors have 5% to 10%
margin.
It is very important to ensure continues supply of products because every distributor can store
only 4-5 cars at one time.
Moreover, Tata Motors is now focusing a lot on export of vehicles to other nations. It is because
there has been many ups and downs in demand of local Indian buyers. Hence, it is focusing on
widening its distribution channel to target more customers.
 References

https://iide.co/case-studies/marketing-strategy-of-tata-group/

https://www.bartleby.com/essay/Distribution-Channel-Of-Tata-Motors-PCDCARN262R

 https://www.marketing91.com/marketing-strategy-of-tata-motors/

https://www.mbaskool.com/marketing-mix/products/16981-tata-motors.html