Tata Motors of India

Tata Motors of IndiaINTRODUCTION Established in 1945, 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. The fraternitys manufacturing base in India is give across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The smart set is establishing a brisk plant at Sanand (Gujarat). Tata Motors, the first company from Indias engineering sector to be listed in the New York Stock metamorphose (September 2004), has also emerged as an international automobile company. Tata Motors is also expanding its international footprint, established through exports since 1961. The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge RD. With over 2,000 engineers and scient ists, the companys Engineering Research Centre, established in 1966, has enabled pi sensati mavenring technologies and increases. It was Tata Motors, which veritable the first indigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the Tata Indica, Indias first fully indigenous passenger gondola. In January 2008, Tata Motors unveil its Peoples Car, the Tata Nano, which India and the world have been looking forward to.The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides mathematical increase development, RD is also focussing on environment-friendly technologies in emissions and alternative fuels.WHAT IS MARKETING?The all-embracing function that links the business with customer needs and wants in order to get the right product to the right place at the right time. IT is the management process that identifies, anticipates and supplies customer requirements expedit iously and profitably.WHAT IS MARKETING PLAN ?A plan is a way of achieving something. Many first-time business owners think that by simply placing an ad in a local anaesthetic newspaper or a commercial on a radio or a television station, customers will automatically flock to purchase their product or service. This is true to a certain extent. Some people ar likely to learn about your invention and try it, just out of curiosity. b bely hundreds, even thousands, of other potential customers may never learn of your business. Companys aim is non only to attract and keep a steady group of truehearted customers, exactly also to expand customer base by identifying and attracting, new customers and to reduce risks by anticipating marketplace shifts that can affect companys bottom line. So, Proper merchandising plan is needed and it should include market research, business location, the localise customer group, competition, the product or service being sold, budget, and advertising a nd promotion.PRODUCTS OVERVIEW OF TATA MOTORS Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation which has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried out meticulously. It involves five categories of product manufacturing.Passenger carsUtility VehiclesTrucksCommercial Passenger CarriersDefence VehiclesIMPACT OF AUTOMOBILE INDUSTRIES IN INDIA A hygienic developed transportation system plays a key role in the development of an scrimping, and India is no exception to it. With the growth of transportation system the Automotive perseverance of India is also growing at rapid speed, occupying an important place on the canvas of Indian economy. Today it is fully capable of producing various kinds of vehicles and can be divided into 3 broad categories Cars, two-wheelers a nd heavy vehicles. India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks.NEW PRODUCT TO BE LAUNCHED IN THE CATEGORY OF PASSENGER CAR ECHO FRIENDLY ELECTRIC CAR As of 2002, there were 590 million passenger cars worldwide (roughly one car per football team people).Around the world, there were about 806 million cars and light trucks on the road in 2007 they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially inChinaandIndia. Most automobiles in use today are propelled bygasolineordieselinternal combustion engines, which are known to cause parentage pollutionand are also blamed for contributing toclimate changeandglobal warming.Increasing be of oil-based fuels, tightening environmental lawsand restrictions ongreenhouse gasemissions are propelling work on alternative power systems for automobiles. Efforts to improve or replace existing technologies include the development of crossbred vehicles, and electric and hydrogen vehicleswhich do not release pollution into the air. Tata Motor is looking forward in this direction.CURRENT MARKET SITUATION AND COMPETITION The company reported a 12.7% rise in net revenue to just over 1 billion in a three-month period ended on September 30 and half way into the financial year 2009 its profit before tax was up by 33% at 194 million on revenue 2.7% ahead at 1.89 billion.Passenger Vehicle(PV) industry sales volume, including exports, crossed the 1mn mark. The PV market is highly competitive with 13 players in operation, out of which 9 are global majors and compete in the market with over 55 models across 9 segments. 80% of the market is for vehicles below Rs 0.5mn.Tata Motors ranks as the second largest car manufacturer behind Maruti Udyog. The primary competitors of Tata Motors are Ashok Leyland in the commercial heavy vehicle segment and Maruti Udyog and Hyundai are in the passenger car segment.Volvo has been increas ing its investing in the automotive sector in India and so have a wide range of other international companies from Europe and America.DISTRIBUTION NETWORK Tata Motors dealership, sales, run and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat differentiateed cars in India.The 28Tata-Fiatdealers, who together have 44 outlets, are located in 11 cities.SWOT ANALYSIS STRENGTHS The internationalization dodge 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.The company has a strategy in place for the next stage of its expansion. It is focusing upon new products and acquisitions, also has a program of intensive management development to establish its leaders for tomorrow.The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for b oth companies.WEAKNESSES The companys 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. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from mercenary segments in a more aspiring India?OPPORTUNITIES In 2008 it had added the Land Rover and Jaguar, two of the Worlds luxury car brands to its portfolio by purchasing it from Ford Motors for UK. And will doubtless off the company the chance to market vehicles in the luxury segments.Tata Motors Limited acquired Daewoo Motors Commercial vehicle business in 2004 for around USD $16 million.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 the Nano the answer in terms of concept or bra nd? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard NanoThe new global frustrate platform is about to be launched from its Korean plant, at a time when the World is looking for environmentally friendly transport alternatives. New and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles.THREATS Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore company has to catch up in terms of quality and lean production.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.Rising prices in the global economy could pose a threat to the company.COMPANYS GOALSThe companys goal is to strengthen its leadership position in the Indian market, maintain operational excellence, and expand its inter national business in selected countries through organic as well as inorganic growth initiatives.COMPANYS OBJECTIVESMARKETING Introduce new product with high-tech features and as per market environmental conditions.Achieve an annual growth rate of at least 15% and market share up to 35-40%.Promote the new product through strategical alliances with advertisement and by organizing promotional events.FINANCIAL Generate sales of approximately Rs 100 crore in year one and increase sales 10% annually. confiscate and maintain a gross allowance account of 20-25%.Achieve positive net worth by next 2-3 years.TARGET MARKET SEGMENT Tata Motors will target following two market segments 1. Middle class Family This is the group of customers who dreams to buy product which is market competitive and inexpensive.2. Youngsters This is the group of customer who believes in being with ripe trends and technology.MARKETING STRATEGY Tata Motors believes in technology for tomorrow. By looking at the mark et strategies of TATA motors, the SWOT analysis can clearly tells why Tata Motors marketing strategies is one of the successful stories in automobile industry nowadays. Tata Motors Company is able to produce more than 4 million different types of vehicles, since the company began in 1945.The 4 Ps The Marketing Mix(MM) model (also known as the 4 Ps) can be used by marketers as a tool to assist in implementing the Marketing strategy. The function of the MM is to help develop a package that will not only satisfy the needs of the customer within the target markets, but simultaneously to maximize the performance of the organization.ProductPricePlacePromotionPRODUCT Every business started from 0, from no one knows it until everyone know it. Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. In future an Electric Car will be in high demand by the point of view of rising Gasoline rate and air pollution worldwide. PRICE There are various factors to determine a price of a car, such as market condition, cost incurred to build a car, profit by company, dealer profit. Giving discount every month and special promotion for certain type of vehicle is one of the strong strategy used by Tata Motors. So, company will make every effort to maintain a competitive pricing policy with approximate 10-12% profit marginPLACE Place of dealership does play an important role. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle essential be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership. Company has the biggest market of Indian population . It has also tie-up with another foreign automobile companies to export the products internationally.PROMOTION During the first year of operation company will exemplify new product in indus trial events like Auto Expo, and will evaluate advertising campaign through the media like Television, Radio, Posters etc. After introduction the product it will provide test-drive at show rooms and introduce high-tech features of the new product to the customers.