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A study on Marketing strategy of Tata Motors
Student Declaration..……………………………………………………...………
Acknowledgement……………………………………………………….………...
Chapter Scheme
Bibliography……………………………………………………………………....
Annexures……………………………………………………………………………
STUDENT UNDERTAKING
This is to certify that I have completed the Project titled “A study on Marketing strategy of tata motors”
under the guidance of “Dr. Ridhima” in partial fulfilment of the requirement for the award of degree of
School of Business Studies, New Delhi. This is an original piece of work and has not been submitted elsewhere.
RAHUL YADAV
NAME OF STUDENT
STUDENT SIGNATURE
CERTIFICATE
This is to certify that the project titled “A study on Marketing strategy of tata motors” is an academic work
done by “RAHUL YADAV” submitted in the partial fulfillment of the requirement for the award of the degree
Vivekananda School of Business Studies, New Delhi, under my guidance & direction. To the best of my
knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.
FACULTY GUIDE
Dr.Ridhima
I express my sincere gratitude and thanks to Dr.Ridhima for giving me an opportunity to enhance my skill in
my project. I am thankful for her guidance, patience and consummate support. I extend my heartiest thanks to
her for enlightening my path. Without her sincere advice, this project has been impossible.
Moreover, I would also like to thank the various people who were involved with this project and gave me
invaluable guidance in this regard. Without their help, this project would not have been as comprehensive and
detailed as it is.
I also feel grateful and elated in expressing my indebtedness to all those who have directly or indirectly helped
me in accomplishing this research.
CHAPTER -1
INTRODUCTION
A BRIEF INTRODUCTION TO THE TOPIC
Introduction
Competition is hitting up in the sports utility vehicle segment (SUV) in India once again.Even as Mahindra &
Mahindra Ltd is in the process of rolling out an integrated marketing plan to announce the pre launch of
Scorpio, Tata Motors is drawing up an aggressive marketing strategy to popularize its recently-launched petrol
variant of Tata Safari.
For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the new avatar of
Scorpio. Created by Interface Communications, the mass media campaign includes a series of press
advertisements and a television commercial. As for the rationale behind the prelaunch of Scorpio, says
Mahindra & Mahindra Ltd executive vice-president (marketing & sales) Rajesh Jejurikar: “After conducting an
extensive market research , we upgraded our existing model with new features. However, the positioning of
the brand will remain the same so the adline will continue to be the same—‘Nothing Else Will Do.’”
The company plans to focus on press ads to highlight the new features and improved fuel efficiency of the
upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting roadshows and ground
promos. Till now we have sold over 20,000 Scorpios since we launched this brand. With this improved version,
we will phase out the old brand,” hisadds. In addition, Mahindra & Mahindra has recently launched a
nationwide talent search programmed titled ‘Scorpio Speedster with Timex’ in 10 cities across the country.
Through this initiative, the company plans to strengthen Scorpio’s brand positioning of being sporty SUV, says
MrJejurikar.Tata Motors is gearing up to launch a new ad campaign to announce the new variant of Tata
Safari, the petrol version. On TataMotors new marketing strategy, says Ogilvy & Mather India clients service
directorSharmilaMalekar: “To announce the launch of Tata Safari (petrol variant), we will be launching a multi-
media ad campaign within a month. The new campaign will include, press ads, TVCs and radio advertising.
There will be a new adline too.” At present, the baseline for Tata Safari is ‘Make Your Own Roads’. In addition
to mass media advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari.
Explorer Club to promote the new avatar of Tata Safari.
In the Indian automobile industry, SUVs today account for only 15 per cent of the total market unlike western
countries where it is almost 80 per cent.
AN OVERVIEW OF INDIAN CAR INDUSTRY
Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the Indian car
industry has demonstrated a phenomenal growth to this day. Today, the Indian car industry presents a galaxy
of varieties and models meeting all possible expectations and globally established industry standards. Some of
the leading names echoing in the Indian car industry include Maruti Suzuki, Tata Motors, Mahindra and
Mahindra, Hyundai Motors, Hero Honda and Toyota Motors etc.
During the early stages of its development, Indian car industry heavily depended on foreign technologies.
However, over the years, the manufacturers in India have started using their own technology evolved in the
native soil. The thriving market place in the country has attracted a number of car manufacturers including
some of the reputed global leaders to set their foot in the soil looking forward to enhance their profile and
prospects to new heights.
In 1940s the Indian automotive industry was at a very low stage. An embryonic automotive ind in India. In
years after independence Indian automobile industry was plagued by unfavorable government policies. All it
had to offer in the passenger car segment was a 1940s Morris model called the Ambassador. In 1953,
government of India and private sector came together to build an automotive component manufacturing
industry to meet the rising needs of the automobile industry.
Ford and General Motors, sensing the potential, set up local companies that year to sell and service their
motor cars and trucks. In 1928, General Motors India Ltd commenced assembling trucks and cars in its factory
in Bombay, the first car assembled in India rolling off the assembly line on December 4th. Two years later,
Ford Motor Co of India Ltd commenced assembly of automobiles in Madras, and the next year in Bombay and
Calcutta. And in 1936, Addison & Co Ltd commenced assembly of cars and trucks in Madras.
Hindustan Motors Ltd, Calcutta, and Premier Automobiles Ltd, Bombay, were established in 1942 and 1944
respectively to progressively manufacture complete automobiles. Hindustan Motors, a Birla group company,
began manufacturing operations in 1948 by assembling Morris Oxford cars and Bedford trucks, gradually
indigenizing the components. In 1957, the Morris Oxford, substantially indigenized, was re-introduced as the
Hindustan Ambassador. The car sector of India is the seventh largest in the world. The country is the largest
manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have
visualized an unbelievably huge increase in these figures over the immediate future. In the year 2009, India
rose to be the fourth largest exporter of cars following Japan, South Korea and Thailand.
About TATA MOTORS
Tata Motors Group (Tata Motors) is a $34 billion organisation. It is a leading global automobile
manufacturing company. Its diverse portfolio includes an extensive range of cars, sports utility vehicles,
trucks, buses and defence vehicles. Tata Motors is one of India's largest OEMs offering an extensive range of
integrated, smart and e-mobility solutions
Tata Motors Limited (Tata Motors) is an automobile company. The Company is engaged mainly in the business
of automobile products consisting of all types of commercial and passenger vehicles, including financing of the
vehicles sold by the Company. The Company has two segments: automotive and others. The others segment
includes construction equipment, engineering solutions and software operations. Tata Motors has operations
in the United Kingdom, South Korea, Thailand and Spain. On October 16, 2009, the Company has acquired 79%
shares in Tata Hispano Motors Carrocera S.A. by way of exercise of the existing call option, through mutual
agreement with the other share-holder, Investalia S.A., Spain. Consequently, Tata Hispano Motors Carrocera
S.A. has become a 100% subsidiary of the Company. On March 30, 2010, the Company has sold 20% stake in
Telco Construction Equipment Company Ltd (Telcon) to Hitachi Construction Machinery Co. Ltd.
WHAT IS MARKETING STRATEGY
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 competitive advantage. Marketing
strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the
strategic initial situation of a company and the formulation, evaluation and selection of market-oriented
strategies and therefore contributes to the goals of the company and its marketing objectives.
TYPES OF STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief description of the
most common categorizing schemes is presented below:
1. Strategies Based On Market Dominance:-
In this scheme, firms are classified based on their market share or dominance of an industry.
Company Valuation is carried out to protect the interest of the investors and also to give the big picture view
to the Internal Stake Holders such that they can align their strategies towards the positive direction.
The case study of Ford Motors and Tata Motors is expected to bring to table the detailed valuation techniques
and also the causes of downfall of Ford Motors and learning from the success of Tata Motors. The significance
of this research is that this dissertation would be useful as a reference guide for not only carrying out analysis
of the theoretical framework of company valuation but also presenting practical analytics by virtue of the case
studies of Ford Motors and Tata Motors using financial statements and analytics that are published on the
Internet and Databases. This document may serve as a first hand guide for researchers to understand and
appreciate company valuation techniques and also get a practical viewpoint about analytics of the published
data in order to build perceptions about a public listed company.
CHAPTER -2
LITERATURE
REVIEW
REVIEW OF LITERATURE
INTRODUCTION
This chapter contains a review of literature. It is divided into two parts. First part contains empirical review
about this topic and the second part contains conceptual review about the topic consumer behavior, it
includes meaning, definition, process and types of consumer behavior.
REVIEW OF LITERATURE
Kotler and Armstrong (2001) in their book have written that the main factors, which discriminate from one
customer to the other, are age, salary, perception and adaptation. This demographical diversification leads the
marketers to assess the impact of their products in the mind of the customers the customers are segmented
accordingly.
Kushagra et al (2017) stated that the modern generation customers who are young and dynamic are very
tech-savvy and adventurous as far as adaptability to a new product is concerned. They give very much
emphasis on the attributes of a mobile like camera quality, processor speed for gaming, battery power etc.
Ibrahim, Kassim, & Mohamood (2013) have deduced that while purchasing mobile phones the young
customers in the society are more influenced by celebrity endorsement, frequency of advertisement, discount
offers, word of mouth publicity spread through friends, family and relatives.
Pigato (2001) explored the proliferation of mobile phones at an unexpected rate in developing countries since
the 1990s. Even poor and remotest countries from subSaharan Africa and South Asia are also catching up
rapidly in mobile access.
Mokhlis, Yakkop (2012) when experimented buyers behavior towards smart phones in Malaysian University
reached the resolution that seven components depict smartphone buying behavior – inventive and innovative
highlighted features , picture, quality, value for money, durable , solidness and compatibility , media impact
and post sales services. The most significant among them was imaginative highlights followed by proposal and
cost.
CONCEPTUAL REVIEW
In this section we discuss the topic Consumer behavior, it includes Meaning, Definition, Process and types of
consumer behavior.
Meaning
Consumer behavior is the study of individuals, groups, or organizations and all the activities associated with
purchase, use and disposal of goods and services, and how the consumer's emotions, attitudes and
preferences affect buying behavior. The study of consumer behavior formally investigates individual qualities
such as demographics, personality lifestyles and behavioral variables, in an attempt to understand people’s
wants and consumption. Also investigated are the influences on the consumer from groups such as family,
friends, sports and reference groups to society in general including brand influencers and opinion leaders.
Consumerism is the pivotal point in marketing. Consumer behavior is very complex and is influenced by
various factors. All the consumers have different tastes and preferences, likes and dislikes and they adopt
different behavior patterns while purchasing goods. A detailed knowledge about the consumer, his behavior,
buying motives and habits provide us with reasons why consumers differ from one to another in buying and
using products and services.
Definition
Prof. Philip Kotler defines Consumer behavior as “the study of how individuals, groups and organizations
select, buy, use and dispose of goods and services, ideas or experiences to satisfy their needs and wants.” The
term Consumer behavior is the behavior shown by the consumer at the time of searching, purchasing, using,
and disposing of product and services which satisfy his needs and wants. It is concerned with the activities of
individuals in buying and using the goods and services. It includes the decision-making process that precedes
his actual purchase. The study of behavior is the study of individuals i.e., how they make decisions to spend
their available resources i.e., time, money and effort on buying goods and services.American Marketing
Association defines Consumer behavior as “the dynamic interaction of affect and cognition, behavior and
environmental events by which human beings conduct the exchange aspect of their lives.” Consumer behavior
thus, relates to all social, psychological and physical behavior of potential customers as they become aware of
the product, evaluate its features, purchase the goods, consume it and tell others about the product and
services.
To understand consumer behavior, it is important to first understand the consumer buying process. Buying
process represents different stages through which the consumer goes through when he has to purchase
something. Consumers have a bundle of desires, needs, out of which the pressing needs move to the top. This
is known as need recognition. After this consumer searches for relevant information related to the product on
the basis of which decision is taken and purchase is made. After consuming the product the post purchase
behavior is evaluated and a dissatisfied customer again has an unsatisfied need, and the process starts again.
Each stage in the consumer buying process is a challenge to the marketer, for which he must have a careful
understanding of behavior before he develops the marketing program.
Need Recognition
The starting point of the buying process is an unsatisfied need. It is the perceived want or desire that paves
the way for the next stage. As we know every customer has a bundle of desires or needs, many of which are
not satisfied. When such unfulfilled needs are identified, the buying process starts. It is important to note that
need recognition should be of those needs without whose satisfaction, the consumer is restless and under
tension. He should feel that he has a desire or need which has arisen and which needs to be satisfied.
Dissatisfaction from the existing product or service may also give rise to restlessness and again a need to
satisfy the urge. Need or wants arise due to internal or external situations. A person may be having deep
rooted desires which may suddenly become dominant and pressing under a conducive environment. Needs
may also arise due to external situations where consumers are exposed to different advertisements and
people. It is the intensity or urgency of wants which decides the speed at which it has to be satisfied. The
pressing or urgent wants are first satisfied as resources are limited.
Information Search
For satisfying the need which has aroused, he has to look for suitable products which will best satisfy his
needs. For this, consumers are willing to gather more information about the product. Alternative sources are
there from where information can be gathered. He may contact his family, friends, colleagues, neighbors who
are personal sources, or he may look for commercial sources like – advertisement, retailers etc. or he may look
at other people which constitute the public source. In this way before purchasing the product, he tries to
collect the relevant information, as he is willing to satisfy this need.
Evaluation
The desire to satisfy need, gives way to the evaluation stage where the consumer tries to evaluate the
information he has received in the pre- purchase stage of information search. This is a stage of mental trial of
the product by the consumer. On the basis of the information received, he has a number of alternatives
before him, out of which he has to choose one. His selection will be based on the relative worth of each
alternative i.e. how suitable the product will be to satisfy his wants i.e. product’s want satisfying potential. On
the basis of factors like- product attributes, brand image, facilities, convenience, etc. he accepts or rejects the
alternatives. Hisfinal decision to buy will depend upon the relative strength of the positive intention to buy.
This stage is concerned with the behavior of the consumer after he consumes the product. This post-purchase
reaction may be positive or negative. If the consumer is satisfied, repeat purchase may be there or he may
recommend the product to other people. Dissatisfaction leads to anxiety and makes a person restless. He has
a problem before him and again he tries to solve it by going for other alternative products or services. A
marketer helps the buyer feel good about the product purchased. In order to reduce his anxiety about the
product, the after-sale services are very important as it develops loyalty, increases sales and profit.
Consumer decision making varies with the type of buying decision. The more complex and expensive decisions
are likely to involve more buyer deliberation and more buying participants. The four type of Consumer
Behavior are :
Sometimes the consumer who is highly involved in a purchase sees little difference in the brands. His high
involvement is based on the fact that the purchase is expensive, in-frequent and risky. The buyer will shop
around to learn what is available but he will buy fairly quickly because brand differences are not pronounced.
In this situation pricing, good location and effective sales personnel are important influences of brand choice.
The major role of market communication is to supply beliefs and evaluations that help the consumer feel good
about his or her choice after the purchase.
Buying Behavior Based on Habits
Many products are purchased under conditions of low consumer involvement and the absence of significant
brand differences. For example- in the purchase category. They go to stores and reach for the brand, having
no strong brand loyalty. They have low involvement with most low cost, frequently purchased products. Their
behavior in these cases does pass through the normal belief/attitude/behavior sequences. They do not search
for extensive information about the brands. After purchase, they may not evaluate it because they are not
involved with the product. So in the buying process, brand beliefs are formed by passive learning and followed
by purchase behavior, which may be or may not be followed by evaluation.
Some buying situations depict low consumer involvement but significant brand differences. Consumers are
often observed to do a lot of brand switching. For example – in purchasing cookies the consumer has some
beliefs, chooses a brand of cookies without much evaluation and evaluates it during consumption. In future,
the consumer may reach for another brand out of boredom or a wish to experiment. Here brand switching
occurs for the sake of variety rather than dissatisfaction.
CHAPTER -3
OBJECTIVES
&
LIMITATIONS
DATA SOURCE:
Research used both primary and secondary data to accomplish the objectives.
PRIMARY DATA:
It is the first hand gathered to help solve the problem at hand. Data is collected personally for the specific
project through research. Questionnaire was designed to gather information on the company marketing and
services.
SECONDARY DATA:
It is the second hand data already available and collected by someone else. The data were extracted through
internet, publications; articles, company books, etc.
DATA COLLECTION:
The study used the survey method to collect the raw information specific to the current research work. The
survey method is advantageous because it helps to collect detailed information about an individual respondent.
Survey:
The type of survey undertaken was that of sample type keeping in consideration the time constraints besides the
viability of census survey. The sample survey undertaken to reach the desired destination was carefully planned
and executed by using selected samples.
Statistical Tool:
The tool used for obtaining the relevant information was questionnaire. A well structured questionnaire was
administered to the sample of the study. The questionnaire was designed keeping in view both major and minor
objectives of the study.
Sampling:
With the customer being unknown and given the time and resource constraints random sample was obtained
from the population. The random sampling is a type of sampling method where each individual unit has an
equal probability of being chosen .
4. To study and analyze the customer's perception regarding the usefulness/utility of cars sold by the
company
5. To study and analyze the distributors perception regarding the promotional and distributional
strategies of Padmavati Auto.
LIMITATIONS:
(a) The sample size could be increased to give a more realistic view.
(b) Data collection methods like interview methods can be used to make responses more accurate.
(c) Other smartphone brand’s Experience can be studied as well like Samsung and Apple.
CHAPTER - 4
FINDINGS
&
ANALYSIS
FINDINGS
1. Tata Motors is the third largest company in the passenger vehicle segment and the leader in the
commercial vehicle segment.
2. The share of Tata Motors in passenger vehicles segment is low as compared to major competitors Maruti
and Hyundai, the former being the market leader.
This may be attributed to a number of factor :-
a) Better products and service 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 maket leader 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 competitors, Mahindra & Mahindra.
5. The two wheeler market is still unexplored by Tata Motors , so it is presents a new market .
ANALYSIS
DATA ANALYSIS AND INTERPRETATION IS THE PROCESS OF ASSIGNING MEANING TO THE COLLECTED
INFORMATION AND DETERMING THE CONCLUSION, SIGNIFICANCE AND IMPLICATION OF THE FINDING .
AGE NO. OF RESPONDENT PERCENTAGE
15-20 33 53.2
20-25 19 14.5
25-30 10 16.1
30 OR ABOVE 10 16.1
The overall performance of the services in the workshop is satisfactory to many of the customers. Nothing in
the world can be perfect. Some faults are seen in the services though not major ones but some of
the problems may give side effect and make because more trouble in the future. So the problems need to
be identified and solved immediately. Some of the main things are as follows.
⮚ Check list should be maintained so that any other extra jobs that the customers are unaware can be
solved.
If the problems identified are solved effectively, then the customer satisfaction level increases on the
organization.
SUGGESTIONS:
⮚ There is huge opportunity of growth for the automobile sector in the coming year, so the dealers
must patiently follow the guidelines of the parent company and maintain the standard in the market.
⮚ The company can hire the services of Curata which is a global agency in creating useful data base for
maintaining the demands of the customers.
⮚ The branches can be opened in many new areas for diversification and the company should also think
of providing other auto parts for its customers in order to cover the entire range of an automotive
industry.
⮚ Soft loans should be provided to the customers for safeguarding their loyalty and generating leads. ∙
Internal loopholes can be checked for minimizing the number of complaints received by the customers.
⮚ The problems stated by the customers should be carefully looked into and get solve ds quickly as
possible
BIBLIOGRAPHY
Books
Websites:
http://www.tatamotors.com/
https://en.wikipedia.org/wiki/Tata_Motors
http://www.tatamotors.com/aboutus/company
ANNEXURE
(QUESTIONNAIRE)
1.WHAT IS YOUR SALARY?
LESS THAN 1 LAKH -3 LAKH
3LAKH-5 LAKH
MORE THAN 5 LAKH