Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1, 65,654 crores (USD 32.5 billion) in 2011-12. It 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. It is the world's fourth largest truck and bus manufacturer.Marketing mix, Brand Promotion.
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Tata motors a succesful brand
1. TATA MOTORS Brand History
T
ata Motors was first established in 1935 as a locomotive manufacturing unit. The first
commercial vehicle was manufactured in 1954, in collaboration with Daimler-Benz AG of
Germany. In 1960, the first truck, quite similar to a Daimler truck, rolled out from the Tata
factory in Pune. Ever since its launch, the truck became highly successful. However, the success
of the commercial vehicles was just the beginning of the flourishing and booming future of Tata
Motors. The company went ahead diversifying itself and took up other products as well. Apart
from exporting heavy-duty trucks, the company decided to come up with lighter versions for the
local market. Thus, began the production of the first LCV (Light Commercial Vehicle) model,
Tata 407 in 1986.
Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-
Benz of Germany. After years of dominating the commercial vehicle market in India, Tata
Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility
vehicle. After the launch of three more vehicles, Tata Estate (1992; a station wagon design based
on the earlier 'Tata-Mobile' (1989), a light commercial vehicle), Tata Sumo (1994; LCV) and
Tata Safari (1998; India's first sports utility vehicle).
Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although
initially criticized by auto-analysts, its excellent fuel economy, powerful engine and an
aggressive marketing strategy made it one of the best selling cars in the history of the Indian
automobile industry. A newer version of the car, named Indica V2, was a major improvement
over the previous version and quickly became a mass-favorite. Tata Motors also successfully
exported large quantities of the car to South Africa. The success of Indica played a key role in
the growth of Tata Motors.
In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata Daewoo.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carocera. Tata Motors continued its market area expansion through the
introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary
Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to
manufacture fully built buses and coaches.
In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of the
Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo.
Debuting in South Korea, South Africa, the SAAR Countries and the Middle-East by the end of
2009.
Tata acquired full ownership of Hispano Carrocera in 2009.
2. In 2010, Tata Motors acquired an 80% stake in the Italy-based design and engineering company
Trilix for a consideration of €1.85 million. The acquisition formed part of the company's plan to
enhance its styling and design capabilities.
In 2012, Tata Motors announced it will invest around 6 billion on developing Futuristic Infantry
Combat Vehicles in collaboration with DRDO.
Tata Motors' financial power comes from the fact that its labor costs amount to only 9% of the
profit, a reason for which many other car producers, including Volvo decided to move operations
to India. Another important factor in Tata's success is the fact that the group holds several
machine tools and metal producing plants, further reducing production costs.
Apart from this, Tata does not lack the innovative spirit, bringing to the world the compressed air
car (One CAT) and the cheapest model ever produced, introduced at the 2008 Geneva auto show,
the Tata Nano, a car which will set you back some $2.500. Also, Tata has expressed their wish to
come up with a car made 100% out of plastic, in an effort to fight rising costs for metal
production.
It seems that Tata Motors has the recipe for success and only time will tell where this car
manufacturer will head next.
Company Profile
Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR
1, 65,654 crores (USD 32.5 billion) in 2011-12. It 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. It is the world's fourth largest truck and bus
manufacturer.
The Tata Motors Group’s over 55,000 employees are guided by the vision to be ''best in the
manner in which we operate, best in the products we deliver, and best in our value system and
ethics.''
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial
joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat
and Tata cars and Fiat powertrains. The company's dealership, sales, services and spare parts
network comprises over 3,500 touch points.
3. Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand, Spain and South Africa. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. JLR supports two state of
the art engineering and design facilities and three manufacturing plants (Solihull, Castle
Bromwich & Halewood) in the UK. In 2004, Tata Motors acquired the Daewoo Commercial
Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market, while
also exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and
subsequently the remaining stake in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a global
leader in body-building for buses and coaches to manufacture fully-built buses and coaches for
India and select international markets. In 2006, Tata Motors entered into joint venture with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the
company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun
production of the Xenon pickup truck, with the Xenon having been launched in Thailand in
2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata Africa Holding
(Pty) Ltd., has its assembly plant in South Africa at Rosslyn, north of Pretoria, in the Gauteng
province of South Africa. The plant can assemble, from semi knocked down (SKD) kits, light,
medium and heavy commercial vehicles ranging from 4 - 50 tonnes.
Tata Motors is also expanding its international footprint, established through exports since 1961.
The company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia, CIS, Russia and
South America. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and
Senegal.
The foundation of the company's growth over the last 66 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as planned,
4. in India in March 2009. A development, which signifies a first for the global automobile
industry, the Nano brings the comfort and safety of a car within the reach of thousands of
families.
In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, in keeping
with its pioneering tradition, by unveiling its new range of world standard trucks called Prima. In
their power, speed, carrying capacity, operating economy and trims, they will introduce new
benchmarks in India and match the best in the world in performance at a lower life-cycle cost. In
October 2010, Tata Motors launched the Tata Aria, the first Indian four-wheel drive crossover.
The Tata Aria redefines several benchmarks with its design and technologies, offering class
leading features that take comfort and safety to a new height.
Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and automotive
retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas employability, education, health and environment. The activities touch the lives of
more than a million citizens. The company's support on education and employability is focused
on youth and women. They range from schools to technical education institutes to actual
facilitation of income generation. In health, our intervention is in both preventive and curative
health care. The goal of environment protection is achieved through tree plantation, conserving
water and creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
Areas of business
Tata Motors makes passenger cars, multi-utility vehicles and light, medium and heavy
commercial vehicles.
Passenger cars: The Company launched the compact Tata Indica in 1998, the sedan Indigo in
2002 and the station wagon Indigo Marina in 2004.
5. Utility vehicles: The Tata Sumo was launched in 1994 and the Tata Safari in 1998.
Commercial vehicles: The commercial vehicle range extends from the light two-tonne truck to
heavy dumpers and multi-axled vehicles in the above 40-tonne segment.
Passenger buses: The Company also manufactures and sells passenger buses, 12-seaters to 60-
seaters, in the light, medium and heavy segments.
Joint ventures, subsidiaries, associates
Tata Motors has a joint venture (JV) with Marcopolo, the Brazil-based maker of bus and coach
bodies. Tata Motors (SA) (Proprietary) is Tata Motors' JV with Tata Africa Holding (Pty); the
JV assembly plant at Rosslyn, Pretoria, assembles light, medium and heavy commercial vehicles
ranging from 4-50 tonnes from semi knocked down kits.
Other associates include:
1. Tata Daewoo Commercial Vehicle Company, a 100-percent subsidiary of Tata Motors in
the business of heavy commercial vehicles (www.daewootruck.co.kr/).
2. Tata Motors European Technical Centre is a UK-based, 100-percent subsidiary engaged
in design engineering and development of products.
3. Telco Construction Equipment Company makes construction equipment and provides
allied services. Tata Motors has a 60 percent holding; the rest is held by Hitachi
Construction Machinery Company, Japan (www.telcon.co.in/).
4. Tata Technologies provides specialized engineering and design services, product
lifecycle management and product-centric information technology services
(www.tatatechnologies.com/).
5. Tata Motors (Thailand) is a joint venture between Tata Motors (70 percent) and Thonburi
Automotive Assembly Plant Co (30 percent) to manufacture and market the company’s
pickup vehicles in Thailand (www.tatamotors.co.th/).
6. Tata Cummins manufactures high horsepower engines used in the company’s range of
commercial vehicles (www.tatacummins.com/).
7. HV Transmissions and HV Axles are 100-percent subsidiaries that make gearboxes and
axles for heavy and medium commercial vehicles.
8. TAL Manufacturing Solutions is a 100-percent subsidiary that provides factory
automation solutions and designs and manufactures a wide range of machine tools
(www.tal.co.in/).
6. 9. Hispano Carrocera is a Spanish bus manufacturing company in which Tata Motors
acquired a 100 percent stake in 2009 (www.hispano-net.com/).
10. Concorde Motors is a 100 percent subsidiary retailing Tata Motors’ range of passenger
vehicles (www.concordemotors.com/).
11. Tata Motors Finance is a 100 percent subsidiary in the business of financing customers
and channel partners of Tata Motors.
Products
Commercial vehicles
Tata Ace
Tata Ace Zip
Tata Super Ace
Tata TL/Telcoline/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1512 (Medium bus chassis)
Tata 1612/1616 (Heavy bus chassis)
Tata 1618 (Semi Low Floor bus chassis)
Tata 1623 (Rear Engined Low Floor bus chassis)
Tata 1518C (Medium truck)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Starbus (Branded Buses for city, intercity, school bus and standard passenger
transportation)
Tata Divo (Hispano Divo; Fully built luxury coach)
Tata CityRide (12 – 20 seater buses for intra-city use)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8×2)
Tata 3516 (Heavy truck)
Tata 4018 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6×4)
Tata Novus (Heavy truck designed by Tata Daewoo)
Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)
Tata Prima LX (Stripped down version of Tata Prima)
7. Military vehicles
Tata LSV (Light Specialist Vehicle)
Tata Mine Protected Vehicle (4×4)
Tata 2 Stretcher Ambulance
Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions
Tata LPTA 713 TC (4×4)
Tata LPT 709 E
Tata SD 1015 TC (4×4)
Tata LPTA 1615 TC (4×4)
Tata LPTA 1621 TC (6×6)
Tata LPTA 1615 TC (4×2)
Tata Winger Passenger Mini Bus
Tata Landrover 1515 F
Factors of Success
Strong Presence in the Marketplace
Tata Motors is the only company in India with a broad-based presence across the industry, in all
segments of the commercial vehicles market –heavy and medium commercial vehicles, light
commercial vehicles, pick-ups, sub one-tonne mini-trucks - and key segments - compact, midsize
car and utility vehicle segments - of the passenger vehicles market.
Unique Understanding of Customer Need
With 50 years’ presence in the automotive business, Tata Motors understands customer needs
and develops products that meet their needs. To consider a few examples, as early as 1980s, the
company launched Light Commercial Vehicles, amidst Japanese competition, in which it today
strongly leads. In the 1990s, anticipating the need for an affordable family car, it launched the
now famous Tata Indica, which occupies a leading position among compact cars. This keen
sense of the customer pulse led the company to launch in 2005, the Tata Ace, India’s first sub
one tonne mini-truck, as a last-mile distribution vehicle once again creating a new market. Going
forward, Tata Motors has anticipated that non-car owning families, at the bottom of the pyramid,
will look for an extremely affordable vehicle, providing exceptional value and this small car will
be launched in 2008.
Skill Base Developed Over the Last 40 Years
Tata Motors is also very well-placed on technology capability. The company had set up its
Engineering Research Centre as early as 1966.With 1400 scientists and engineers and state-of-
the-art development, testing and validation facilities, it is this technology capability which has,
8. allowed Tata Motors, over the decades, to offer indigenously developed products. This strength
has been accentuated, with the inclusion of TMETC, TDCV and Hispano Carrocera in the R&D
network, besides several other specialist external agencies. The company no longer needs to
develop every necessity itself. Today it just has to manage the process of product creation,
drawing upon already available R&D and skills from different sources.
People Strength
The company’s key strength is its people. The over 22,000 employees comprise a very broad
talent base, with the required skills in every aspect of the industry. With increasing international
initiatives by the company, this talent base is now getting enriched with the necessary
competencies to respond to meet world-class standards of quality and cost
Tata Motors' Success Mantra
Tata Motors is India's largest company in the commercial vehicle sector. The company is the
world's fourth largest truck manufacturer and second largest bus manufacturer in the world. In
India, Tata Motors is the leader in every commercial vehicle segment and it is the third largest
passenger car maker.
Tata Motors is able to produce more than 4 million different types of vehicles such as cars,
trucks, commercial vehicles, SUVs and many more since the company began in 1945.
The marketing strategy of Tata Motors is one of the most successful marketing strategies used by
a car maker in the car industry. The car company lays emphasis on the Product Branding and
Advertising. Advertising is the common way to make public aware of the new product. Besides,
advertising also help to create a brand image. Over the years, Tata Motors have been successful
in their own might in creating a brand image for itself.
Tata Motors also stresses on the packaging, innovations and quality control of a product. Tata
Motors is being able to provide many innovative features to lure customers. E.g., the Tata Safari
4X4 Dicor with its "Reverse Guide System", where a weather-proof camera is fixed to the rear
end of the car to help the driver while reversing the car.
The pricing policy of Tata Motors is always appreciated by the public. The price of a car can be
determined by factors such as market condition, cost incurred to build a car, profit by company
and dealer profit. Tata Motors makes use of strategies such as discount and special promotions
9. every now and then. This attracts car lovers to opt for a Tata car. Tata Motors gives discounts
based the company's profit or from dealer's profit at a certain range.
Tata Motors has felt its presence across India and abroad with its showrooms. This is another
marketing strategy of Tata Motors that boosts sales of vehicles.
The car company has established many servicing centers as well which stands as a back bone for
the company to connect with the people. Tata Motors easy access to the general public has made
the brand grow in size and stature. Tata, due to its presence in the commercial as well as the
passenger vehicle segment, know the pulse of the people unlike many other car makers. Tata
which is a huge conglomerate has branched its business into various segments like finance,
banking, public sectors domains and other major fields apart from automobiles which has made
Tata a household name in India and abroad.
Marketing mix TATA MOTORS
1. Product: Tata has a very wide range of products it has passenger cars, utility vehicles,
Trucks, Commercial passenger Carriers and Defense Vehicles.
Passenger cars Utility Vehicles Trucks Commercial
Passenger Carriers
Indica vista Safari Dicor Tata Novas Buses
Indigo XL Sumo Grande TL 4×4 Winger
Nano Sumo Magic
Fiat cars Xenon XT
2. 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.
3. Place: Tata Motors has an extensive dealer network covering Indian and International
markets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The
channel of distribution, physical location, and dealership method of distribution and sales is
generally adopted. The distribution of vehicle must 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.
10. 4. Promotion: Tata motors promote their products via Advertising and after sales services
5. People: Tata Motors owe our success to the highly motivated and talented staff. Our
recruitment division picks the crème-de-la-crème from premier universities, management and
engineering institutes in India. they put them through rigorous training programmes to hone their
entrepreneurial skills and impart comprehensive product knowledge.
6. Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for achieving
excellence in overall Company performance.
7. Physical Evidence: The management of the company has managed to keep their hopes alive
even in this recession and hopes that the worse is behind Tata Motors recently launched the most
awaited car of the year, Tata Nano and the company has already received 203,000 booking that
are fully paid and 70 percent of the applicants are ready to wait till the end of 2010 for the car to
be manufactured.