GROUP MEMBERS
34 61 51
VIKAS
SHATABDI
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History
Tatas are a family of Indian industrialists and philanthropists. The family founded:
Ironworks Steelworks cotton mills
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History
Tata Motors is Indias owns the largest independent company in India. Mercedes and Tata teamed up to create a truck line.
First major business deal with another
firm.
Together both companies started their commercial vehicle operations in 1960. in 1986 the company created and sold the first LCV
LCV = light commercial vehicle
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Being the supplier & partner of choice. Archiving excellence in safety, operations& project management. Focusing on culture & sustainability. Ensuring growth & delivering to the 7/11/12 stockholder.
Branches
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Branches
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PRODUCTS OF TATA
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Products
Passenger cars and utility
vehicles
Tata Sierra Tata Estate Tata Sumo Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger
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Tata Xover
Products
Military vehicles
Tata LSV Tata 2 Stretcher Ambulance Tata 407 Troop Carrier Tata LPTA 713 TC Tata LPT 709 E Tata SD 1015 TC Tata LPTA 1615 TC Tata LPTA 1621 TC
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Military Trucks
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Corporate strategy
To buy premium vehicle brands such as Land Rover and Jaguar bolster Tata Motors image as a global company and increase its global reach and scale Overall The Tata group has spent around $15.5 billion in acquiring foreign companies The Tata name is a unique asset representing leadership with trust
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Corporate strategy
synergy developed as a result of the strengths of domestic and foreign market share, congregating under the umbrella of Tata group The Tata Group as a whole has over 20 publicly listed enterprises and operates in more than 80 countries world-wide - lots of experience and resources to draw from for research and development purposes Strong corporate governance based on rich legacy of fair, ethical, and transparent governance practices to ensure that its employees act 7/11/12 ethically and the business continues to run
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MERGERS &acquisitions
TATA communications (formerly VSNL) acquired CEC (China enterprises communication) with 50 % stake .
TATA motors acquired jaguar and land rovers (UK based) with a value of $ 2.3 billion
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Diversification
1977 First CV from Pune plant. 1983 First HCV rolled out. 1986 First LCV (Tata 407) launched followed by Tata 608. 1991 First passenger car Tata Sierra launched. 1992 Tata Estate launched. 1994 Launch of Tata Sumo. 1995 Mercedes Benz car E220 launched (http://en.tatamotors.ru/Milestones.aspx) 1997 Tata Sierra Turbo launched.
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PRODUCT, BRANDING, AND ADVERTISING Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. PLACE Place of dealership does play an important role. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. MAINTENANCE AND SUPPORT After sales service is also another important marketing strategy for most of the car buyer to choose for the right car.
MARKETING STRATEGIES
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The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 21kmpl on the highway and around 18kpl in the city. This is cheaper than the Maruti 800, its main competitor and next cheapest Indian car priced at 7/11/12 184,641 Rupees.
Porters Five Forces analysis for the Specific product that we have taking into analysis is the NANO CAR.
BARRIERS TO ENTRY
Time and cost of entry The launch of the NANO is quite viable as the demand of the small car is on the rise in the market. By the cost of the entry we mean the initial capital required to set up a new firm is very high, it makes the chances of new entrants are very less.
Knowledge and Technology Ideas and Knowledge that provides competitive 7/11/12 advantage over others when patented, preventing others from
BARRIERS TO ENTRY
Although government'sFive Forcespreserve free competitive Porters job is to analysis market, it restricts competition through regulations and restrictions. The government tried to promote the TATA Motors to start a plant by providing land and tax rebates. But the unexpected retaliation by the local people surface in the setting up of the plant which costed the company a lot.
When a new product is launched a well developed distribution is must for its success . The TATA motors had a 7/11/12 advantage of well established distribution channel across the
Switching Costs
If switching to another product is simple and cheap the customers does not think much before doing it. In case of NANO car the switching cost from bike to car is too high.
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COMPETITIVE RIVALRY
Number and Diversity of Competitor
The
small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Hyundai etc. which was pretty much dominated by Maruti. But 7/11/12
COMPETITIVE RIVALRY
Exit Barriers Even if the product fails in the market its not that easy for the company to exit the market just like that because of the heavy investment it has made in the initial stage. If the NANO fails or falls flat the TATA motors will not be in a state to slow done the product even when NANO production 7/11/12
1980s
Maruti
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1990s
Tata sierra
Tata safari
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2000 onwards
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Indian market is broadly classified into 9 product segment ranging from mini to Luxury vehicle. The pie chart clearly show the market share for each product segment.
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Market Segmentation
Four commonly used criteria are used for segmentation, which include:
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STP contd
Differentiation
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Accessible - How a segment can be accessed via Marketing Communications produced by a firm. Measurable - Can the segment be quantified and its size determined? Profitable - Can a sufficient return on investment be attained from a segment's servicing?
Customer habits :
Indian Customers are educated, highly discerning and well informed Preferences for small cars, Small cars are socially acceptable even among well-off people Preferences for fuel efficient cars with low running costs. Tata Indica 7/11/12 has the lowest running cost per mile
Positioning
Land rover For High Income customers
Indica vista For Middle Income customers Tata Nano For Low Income customers
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1.4 TDI
475 IDI Turbo 71 PS (52 kW; 70 hp) @ 4500 rpm Diesel
1.3 Quadrajet
1.2 Safire
1.3L SDE Common, Quadrajet New 1.2L, MPFI, Safire Petrol Diesel engine engine 75 PS (55 kW; 74 hp) @ 4000 rpm Diesel 65 PS (48 kW; 64 hp) @ 5500 rpm Petrol
Price
Rs.2,60,000 to 4,99,000
Rs.4,05,000 to Rs.4,99,000
Rs.3,47,000 to Rs.3,97,000
Three models that caters to all three engines Tera Aqua Aura
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S m Distribution eg ent
Premium 1%
Mini 4%Luxury 0%
Mid-size 20%
Compact 72%
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10
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Industry Outlook
Recovery in 2009-10 to be aided by lower cost of ownership and
holding period
Capacity to touch 3.75 million units by 2010-11
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Players Tata-Fiat Tata Motors Ltd Mahindra & Mahindra Ltd Honda Siel Cars India Ltd Toyota Kirloskar Motors Ltd Ford India Ltd International Cars & Motors Ltd Volkswagen Renault-Nissan
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Market Overview
9th
largest in the world of over 2.3 million units largest Asian exporter
Production 4th
79% 60%
passenger vehicle market share: Maruti Suzuki commercial share: Tata Motors sales units
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vehicle
market 100,000
Monthly
exceeded
Market Overview
No
Number
of households able to afford cars projected to double by end of decade proportion financed by credit of purchases
High
Highly
Global
to
gain
footholds
Market Overview
Manufactu FY 08 rer FY 09 % Change Market Y-O-Y Share % Maruti 711,818 722,184 1.5 52.2 Suzuki Hyundai 216,307 244,000 12.8 15.7 Motors India Tata 167,058 200,159 19.8 12.9 Motors Honda Siel62,802 52,420 -16.5 3.4 Cars India Indias Top 5 Domestic Passenger Vehicles Sales Ford India 30,962 27,976 -0.96 1.8 7/11/12
Company analysis
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Domestic Growth
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International Growth
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Last year
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Analyzing Competition
A systematic attempt to identify and understand key elements of a competitors strategy in terms of objectives, strategies, resource allocation and implementation through the marketing mix
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Suppli ers
Bargaini ng power
COMPETITIV E RIVALRY
Bargaini ng power
Buye rs
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Grouping Competitors
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Takeaways
Pricing
Strategy Price to Price-Value One Stop Shop to Customers Different Revenue Streams Centric Approach Repositioning Services maintenance market on Cost Leadership
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People in age group 50-60 years hold high regards for Tata brand which is one of the reasons they intend to purchase Tata Motors cars. People recall big newspaper advertisements for cars. Recall value for television advertisements, that are not associated with a celebrity or with a catchy concept such as Josh for Ford Ikon, is 7/11/12 abysmally low.
As opposed to the widespread notion that customers prefer their first car to be compact and subsequently they move onto bigger cars might not hold true always. Customers display the propensity to purchase compact cars even after buying a higher segment car probably owing to more comfort, recommendation by friends or for usage by7/11/12 family other
The assumption that young people are more technological savvy as compared to older people might not be true. Older people (50-60 years) were found to be very knowledgeable. One of the reasons might be their experience with owning cars. Insights from sales force heads inputs 7/11/12
Due to increased fuel price, nowadays mileage has become the most important criterion for a significant customer base. Availability of finance influences the customers decision in many cases. For example, customers who have come to buy Indica having fixed cash in hand, end up buying Indica 7/11/12 Vista after getting financial facilities.
People in age group 50-60 years sit at the back during test drive. This is because they look for comfort in the car. This may also be attributed to that most if the time they will not be driving the car due to availability of a driver. The customer came to know about the car variant they are test driving inside the car. This gap in the knowledge leads to an 7/11/12 expectation
Conclusion
Tata
of the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. Therefore Tata Motors Limited is always committed to understanding customer needs.
The
PR ES EN TE NE D HA BY VI KA RA : SH W SC AT HO AL MA A NN BD UD I D AR U 34 UT Y TA 61 51 28
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