Here I have analyzed the marketing strategies of Tata Motors

1. MARKETING MANAGEMENT ASSESSMENT
TATA MOTORS MARKETING
STRATEGY
Prepared by
Shanid k p
MBA IM 2
RICS SBE

2. Overview of Tata Motors
Tata Motors is India’s largest automobile manufacturer and is growing at a tremendous rate in other
international markets. It is a company which was set up in 1945 by the name Tata Engineering and
Locomotives co ltd, for manufacturing locomotives. Further it started manufacturing Steam Road
Rollers and medium sized commercial vehicles with a collaboration between Marshall Sons (UK) and
Daimler Benz AGrespectively. Slowly they started to expand their product line; also commenced
exports to international markets starting with Srilanka in 1961. They also expanded their unit to Pune
in 1966 and ventured into heavy commercial vehicles by 1983. In 1985 they produced first hydraulic
excavator in collaboration with Hitachi. Then followed a set of indigenously developed light
commercial vehicles like 407, 608 and Tata Mobile 206 which became very popular.
Tata Engineering co ltd ventured into passenger cars with the launch of Tata Sierra in 1991. Tata
Estate and Tata Sumo followed in the coming years. During this period Tata entered into
collaboration with Cummins Engine co ltd for manufacture of high horsepower diesel engines and
Daimler Benz for the manufacture of Benz passenger cars in India. In 1997, they launched the most
successfulTata cars in India, Safariand Indica. In 2003, the name of the company was changed to
Tata Motors ltd.
Tata Motors had acquired many companies globally in the process of scaling up to today’s size.
Daewoo Commercial Vehicle co ltd from Korea in 2004, bus manufacturer Hispano Carrecera SA
from Spain in 2005, Jaguar and Land Rover for USD 2.3 billion in 2008 and Trilix Srl from Italy in
2010 are major takeovers made by Tata Motors over the years. They also had collaborated with Fiat
India Automobiles co ltd to manufacture passenger car’s engines and transmissions, Marcopolo from
Brazil for manufacturing fully build buses for India and markets abroad and Thonburi Automotive
Assembly plant co in Thailand to manufacture, assemble and market pickup trucks in South-east Asia.
Meanwhile, more vehicles were added to the product line across the segments like Ace,Winger,
Magic and so on. Most of these vehicles ended up creating new segments in the Indian Automobile
industry. One of the biggest achievement for Tata Motors was the development of Tata Nano, the
most affordable car in the world. This feat helped Tata Motors to attain international claims.
Unlike other automobile manufacturers,Tata Motors provides all forms of products ranging from
passenger cars,small-medium-heavy commercial and passenger vehicles, construction and earth
moving vehicles, tactical and armoured vehicles. They have also made their presence into auto-
components, engineering and research. If we analyse Tata motors growth, its been a mix of
acquisitions, joint ventures and indigenous research and development. They were highly successfulin
the execution of their strategy for last few decades but have lost the momentum in the last few years.
This sluggish growth in both passenger and commercial vehicle segments, raised due to increased
competition and mixed to bad reviews from customers for the products and services offered by the
company. Tata Motors is under a tremendous revamp across product line. They have incorporated
various strategies to make a comeback into the market and regain their market share. Change in the
marketing strategy is one of the most important part of this plan and is discussed in this article.
Tata Motors Consolidated Revenue
(source: amigobulls.com)

3. STP Analysis
Segmentation
Segmentation is the process of dividing the market into segments on customer characteristics and
needs. The need of segmentation is since no market is homogenous; each market can be divided into
different customer groups.
With its wide range of product line and global outreach, Tata Motors have mainly segmented the
market on the following parameters
 Geography – Urban or Rural | Developed or Developing nation
 Income – High income or Middle class
 Usage – Private or Commercial
Targeting
Targeting is the process of choosing the most attractive segment on which the product or services is to
be marketed. Many factors come into picture before targeting specific segments, other than selecting
the most attractive segments.
The major targets of Tata Motors are:
 Low income and middle-income groups
 People living in the cities
 Commercial use vehicles
Positioning
Tata Motors have used the strategy of having different brands to target different segments. They
achieved it with the help of acquisitions. They broadly position their products under following brands
 Tata Motors – for both passenger and commercial vehicles, which target low income and
middle-class category.
 Tata Daewoo – for medium and heavy commercial vehicles globally
 Jaguar and Land Rover – these are high end vehicles which target the high-income class
Tata Motors Subsidiaries
(source: Case Study – Tata Motors: Becoming a global contender, SlideShare)

4. Role of Branding
Tata Motors is a well-known brand in the Indian automotive industry. Tata Motors have successfully
launched all their products with the most competitive price in the market and this strategy had worked
largely for them. The company also focussed on encashing the popularity and expertise the branch
possesses in Indian market. Globally they projected the strong financial backup they have by
acquiring significant number of stressful automotive companies and successfully restructuring them.
They choose not to brand the newly acquired companies with Tata Motors, but instead focussed on
revamping those companies by providing much needed financial assist, thereby re-establishing these
brands into the market. These brands being much popular and trusted across globe than Tata Motors,
it was much easier to carryout the turnaround. Acquiring these brands also helped Tata Motors to gain
access to expertise and cutting-edge technologies these companies possess. This created a positive
boost for Tata Motors in India as it helped in changing the perception of Indian customers.
Tata Motors is the largest automotive manufacturer in the country. Even under immense competition
in the market, they were able to retain a large chunk of the market. Branding have played a vital role
in attaining this. Tata Motors have tried to market the highly acclaimed products of Daewoo,Hispano
and Marcopolo under the Tata Motors brand in India, thereby balancing on both performance and
brand value. Prima and magna range of trucks, Starbus, Globus and Marcopolo series of buses etc are
few examples. But over the years,the performance of Tata Motors in India is weakening, and they are
undergoing a transition period.
When Tata Motors acquired Jaguar and Land Rover, that company was under huge financial crisis.
But the brand value was still high. Tata Motors build upon the same brand value. Today JLR is
growing at a phenomenal rate beating all other competitors and contributes eighty percent of Tata
Motors revenue.
(source: Case Study – Tata Motors: Becoming a global contender, SlideShare)

5. Restructuring Carried out by Tata Motors
Defining the problem
From 2009, Tata Motors are on a downfall in both passenger and commercial segments. This is
resulted by many factors
 Increased competitions in various segments
 Failure in updating the products and services, thereby becoming outdated in the fast
progressing market. Were late to the party in most cases.
 Failed to incorporate the feedbacks and address the complaints from customers.
 Better products and services,and marketing strategy by competitors
 Lack of technological advancement and failed marketing strategy
Commercial Vehicles Market Share (comparison between 2009 and 2017)
(source: (Autobei consulting group)
Bringing in the much-needed change
Tata Motors is working on a turnaround and have almost started to reap the benefits of these
activities. Focus was on mainly
 Product related
o Launching new product lines
o Revamp / discontinue old models
o Focus on Customer relation management (CRM)
 Process related
o Increase operational efficiencies
o Realign structure to match business segmentation
In the case of passenger car branded under Tata Motors, the company made a very interesting move.
They went to rock bottom; the sales and revenue had gone to all time low. The number of cars sold in
2014-15 were equalto the sales in 2003-04. Then after a differential break, they started to replace the
existing models with new products which were all new from inside out. These cars were on a whole
new design principle, Impact Design Language. Tiago, Tigor, Hexa and Nexon were the cars designed
with this principle. This helped the company to win customers slow and steady. Sales and revenue
increased marginally, and Tata Motors returned to third position in sales during November 2017.
They even signed Lionel Messi for advertisement. Then came the real deal breaker.
An all new design language, dubbed Impact 2.0 was showcased in Delhi Auto Expo 2018. The cars
were stellar to define the least. Tata’s pavilion was the most sort after in the Expo. A moment to cheer

6. for Tata Motors, one which they never had in the last few years. They didn’t stop there, they are going
to launch an executive sedan in Geneva in the coming days, fingers crossed.
SWOT Analysis for Buses, Tata Motors
(source: Case Study – Tata Motors: Becoming a global contender, SlideShare)
Things are no different in commercial vehicles. Tata Motors have made a complete revamp of the
product line, customer relation management was re-established, increased the quality and number of
service and maintenance facilities, roped in a new brand Ambassador, Akshay Kumar etc were few of
these measures.
(source: Marketing Strategies of Tata motors, SlideShare)

7. Marketing Strategy Adopted by Tata Motors
When Tata Motors complete the undergoing turnaround action plan, the company will be a totally
different one than what we see today. Its not just new product lines. It’s a whole new marketing
strategy which is focussed on customer delight and satisfaction
Product
 All the outdated products are eliminated and new product lines which out perform the
competitors are been launched.
 Brand: Tata has always been a trusted brand in the Indian society and when people buy a Tata
product, they not only discern its features and quality but also associate with it as brand.
Recently, Tata Motors as a part of the revamp, came up with a new tagline ‘Connecting
Aspirations’. It is part of a compendious project that was launched last year on Corporate
Branding. They had analysed their current position, and where they wanted to be. It is after a
thorough market research,they came up with this tagline. Tata Motors having a strong
foundation and core values already, has always understood the aspirations of the customer.
Tata Motors have further consolidated various products to streamline the range of vehicles
they offer. This will help the company to capitalise on the brand value. Prima trucks, which
they adapted from Daewoo have given a kick start in heavy commercial vehicles.
 Packaging: Tata Motors have come up with all new design languages Impact in 2016 and
Impact 2.0 in 2018. They also tied up with Microsoft to develop a connected platform for
Tata vehicles and Harman to provide best in class infotainment systems. Similarly, various
features are incorporated to make Tata vehicles stand out.
 Innovations: Jaguar and Land Rover are known for their innovations and now Tata is bringing
it across its product line. Various drive modes in new gen Tata cars are one among them.
They have ventured into electric car segment and had won one of the country’s largest order
to supply 10000 electric sedan cars to Indian government, beating experienced players from
around the world. This was able only because of the innovations made within Tata Motors.
 Quality control: quality has been the motto of the company right from the initial days and
they continue to work on it. In 2014, as the sales of Tata Motors went down due to low
quality products which forced the consumers to go for other alternatives, the company
decided to focus on quality rather than quantity and cut down the number of vendors from
1200 to 300-400.
Price
Tata Motors are always known to be competitively priced, much below the competitors thereby
creating an edge among others. Even in the turnaround plan, the company remain to follow the same
principle. In a market like India, this strategy is very crucial.
Tata Motors have introduced the world’s least expensive car,Tata Nano which was a game changer at
a price tag of 1 lakh. With this car,the dream of millions of people of owning a car turned into reality.
On the other hand, the Tata Motors owned Jaguar which caters to the high-end customers.
Pricing strategy of Tata Motors include
 Price penetration
 Low profitability pricing

8. Place
Distribution Networks:Tata Motors have presence in 170 countries and has 6600 touch points across
globe. In India, they have vast network of dealerships across the length and breadth of the country. As
a part of the restructuring plan, the company have planned to increase the number of dealerships
which will help to further increase the presence of the company deeper into root level. The quality of
service provided in these facilities are also improved tremendously.
For passenger cars alone, Tata Motors have around 546 outlets and in a plan to add another 200 by
this year. They aim to have 1500 outlets in the next five years. Similarly, Tata Motors being the
market leader in commercial vehicles claims to have a service facility every 50kms. They have also
come up with a new franchise model called 3S which stands for sales, service and spare,all under one
roof. This network is expanding fast and already have 50 such facilities. All these are done to increase
the accessibility and service.
Key Strategies in Customer Relations
(source: Marketing Strategies of Tata Motors, studymode.com)
Promotion
The company is investing heavily on promotion. With the changed dynamics, Tata Motors aim to
reach out to class of people. For this they have heavily invested on
Advertisement: Tata Motors have roped in Lionel Messi to endorse one of its cars and Akshay Kumar
to endorse for its commercial vehicles. These both are too different strategies to reach to different
segments of customers. Similarly, for Jaguar and Land Rover, they focus on projecting the
performance aspect.
Public Relations: These include plans and programs to influence public opinions or reaction about the
product or organisation. To accomplish this and to increase the awareness of the people, Tata Motors
had shown their presence in all major auto expos and exhibitions.

9. Conclusion
In this article, we have tried to analyse different marketing strategy of Tata Motors and analyse the
impacts of such strategy in helping Tata Motors to satisfy the customers. Tata Motors which had a bad
track record in the past is under a complete overhaul in all segments. By this transition, Tata will
emerge as one of the most sort after automotive company in India in specific as well as globally in the
coming years. The change is around the corner and the company have already started to feel the
traction. Tata Motors also have enormous plans in extending their global reach. The joint venture with
Chery Automobile in china to manufacture Jaguar and Land Rover in China is just one example of it.
And this had helped to make China the largest market for Jaguar and Land Rover within a short
period of operation. Things are not different for other markets like US, UK,India etc.
Tata Motors is carrying out substantial research and development in electric car segment, which is
slated as the future. They have showcased five electric car models in the Delhi auto expo, one being a
sports car. Jaguar is on the verge of launching an all new electric SUV, which outclass the
competitors. All these put together will change the future of the company itself. If the company can
make things right for vehicles under Tata Motors brand at this point, it can easily become one of the
largest automotive company in the world.
Reference
 www.tatamotors.com
 Marketing Strategies of Tata Motors, studymode.com
 Marketing Strategies of Tata motors, SlideShare
 Case Study – Tata Motors: Becoming a global contender, SlideShare
 www.amigobulls.com