Professional Documents
Culture Documents
SAYON DAS
MAHAJA SURAJMAL INSTITUTE
CERTIFICATION
This is to certify that Sayon Das student of B.B.A (B&I) Programme from Maharaja Surajmal Institute, affiliated to Guru Gobind Singh Indraprastha University has completed his Project Report, under my guidance and this is his original work.
Dr. Suneyna
ACKNOWLEDGEMENT I acknowledge with gratitude and appreciation, my indebtedness to my teacher mentor & guide, Dr. Suneyna for allowing me to work on Tata motors Marketing Project, I also thank her for the ideas and basic concepts she delivered and shared with me, as they helped me a lot in accomplishing this project of mine. It gave me enormous gratification to articulate my thankfulness and heart full sense of indebtedness to my parent Mr. S.N Das and Mrs. Sujata Das. .
CERTIFICATE
Chapter 1 INTRODUCTION 1.1 OBJECTIVES OF STUDY 1.2 RESEARCH METHODOLOGY 1.3 LIMITATIONS OF STUDY
Chapter : 2 PROFILE OF ORGANISATION 2.1 OVERVIEW 2.2 PROFILE 2.3 HISTORY Chapter : 3 ANALYSIS AND INTREPRETATION OF DATA
BIBLIOGRAPHY
QUESTIONNAIRE
CHAPTER I INTODUCTION
4. To study how social obligations is a process of marketing and Tata Motors is helping in development of society.
5. Overall perspective of Tata motors marketing and recent business decisions which have truly helped Tata motors emerge as a truly global motor vehicle manufacturer and distributor.
RESEARCH METHODOLOGY
Redman and Mory define research as a systemized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories, as following:1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies
with this object in view are termed as exploratory or formularise research studies. 2. To portray accurately the characteristics of a particular individual, situation or a group. Studies with this object in view are known as descriptive research studies. 3. To determine the frequency with which something occurs or with which it is associated with something else. Studies with this object in view are known as diagnostic research studies. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
Data Source
. I have collected the entire data of this project Tata motors marketing from SOURCES like websites, books and newspapers which are mentioned in bibliography. 1. Defining the Data Source The data required for familiarizing Tata motors marketing s collected from the web sites and books. 2. Research Approach LEARNING ABOUT THE COMPANY At the very outset, the information regarding the origin, developments, the present way of marketing strategy of Tata motors was gathered and thoroughly analysed which gave the researcher an insight into companys profile marketing was made with the help of companys web site, companys manuals , books and other relevant published material. This helped the researcher to understand the present marketing scenario and gain familiarity with the organizations strategic moves.. COLLECTION OF DATA Data was collected though companys website, companys manuals, brochures and other relevant published material i.e secondary data. Primary data has been collected in form of questionnaire. 3. Data Analysis After the data about the profile and marketing had been collected, it was analysed methodically. The importance and the purpose of marketing was identified to assess the benefits and the risks faced by the company.
LIMITATIONS OF STUDY
1. Part of data is collected from secondary source thus the validity of data cannot be tested.
2. The data gathered from secondary source thus any error in the information would have also got replicated in this report.
4. Another problem was knowledge constraint and this report was an attempt to gather as much of relevant data as possible.
5. Lack of information regarding detailed data of marketing process by the organization due to which it could not be expressed in this project.
6. Some grammatical or typing error might have crept which may have been overlooked which may lead to wrong perception about the data and information.
However, every effort is made to ensure that these do not in any way adversely affect the results of the study and inject an element of objecting in the report.
Tata Motors is Indias largest automobile company, with consolidated net profit of 9,274 crore (US$2.07 billion) in 201011. It is the leader in commercial vehicles and among the top three in passenger vehicles. Tata Motors has products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, the world's second largest bus manufacturer, and employs 50,000 workers. Tata Motors has produced and sold over 4 million vehicles in India since 1954. Established in 1945, when the company began manufacturing locomotives, the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.Tata Motors is a dual-listed company traded on both the Bombay Stock Exchange and New York Stock Exchange. In 2010, Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. 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 stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India. Though the car was initially panned by autoanalysts, the car's excellent fuel economy, powerful engine and 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-favourite. In 2009 acquisition of jaguar and land rover has truly globalised Tata and levelled them to new heights.
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Products Engines Services Revenue Net income Total assets Total equity Employees Parent Subsidiaries
: : : : : : : : :
Automobiles Outsourced Engineering and Design 123,133 crore (US$27.46 billion) (2011) 9,274 crore (US$2.07 billion) (2011) $20.192 billion (2010) $2.224 billion (2010) 50,000 (2010) Tata Group Jaguar Land Rover, TDCV, Tata Hispano
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HISTORY
Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The company was established in 1945 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz AG of Germany. his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive and simple to build and maintain, the Indica became a hit in the Indian market. It was also exported to Europe, especially the UK and Italy. Indian manufacturers Tata Motors have quite the history under their belt, starting with the company's foundation in 1945 as a locomotive producer. Tata Motors is just one part of the
Jehangir Ratanji Dadabhoy Tata
business group Tata, formerly known as TELCO (Tata Engineering and Locomotive Company), which also has several other ventures, including a steel making plant and even a tea producing company. Tata got into the motoring business in 1954 when it starting producing heavy trucks in a joint venture with Daimler-Benz AG. So, in 1960. the first truck rolled out of the factory's door in Pune, India, a copy of a German Daimler truck. Tata starting exporting heavy-duty trucks but for the local market, they had to come up with lighter versions because of the infrastructure of the country. The first LCV (Light Commercial Vehicle) model, the Tata 407, began production in 1986.
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At the beginning of the 90s, the company sought to evolve and expand into the car market, and it began a collaboration with Cummins Engine Company to produce more efficient diesel engines. Their first car was the Tata Indica, a model that enjoyed an unexpected success both in India and on other European markets, despite the fact that car-analysts gave it bad reviews. The Indica won people over with it's low fuel consumption and powerful engine. It was so successful that Rover began selling it in the UK under the name of CityRover. The second generation of Indica, the V2, was even more successful. Indica's major success gave Tata Motors the financial power to take over Daewoo Motors in 2004, in a effort to take their brand more international exposure. surprising acquisitions by the Tata Group include Jaguar and Land Rover as of March 26th, 2008 for a net 2 billion US dollars. Tata has Lately, made Other
known its aggressiveness when it comes to gaining exposure and acquiring new brands. 2008 - Nano 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.
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Apart from this, Tata does not lack the innovative spirit, bringing to the world the compressed air car (OneCAT) 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. Indian manufacturers Tata Motors have quite the history under their belt, starting with the company's foundation in 1945 as a locomotive producer. Tata Motors is just one part of the business group Tata, formerly known as TELCO (Tata Engineering and Locomotive Company), which also has several other ventures, including a steel making plant and even a tea producing company. Tata got into the motoring business in 1954 when it starting producing heavy trucks in a joint venture with Daimler-Benz AG. So, in 1960. the first truck rolled out of the factory's door in Pune, India, a copy of a German Daimler truck. Tata starting exporting heavy-duty trucks but for the local market, they had to come up with lighter versions because of the infrastructure of the country. The first LCV (Light Commercial Vehicle) model, the Tata 407, began production in 1986. At the beginning of the 90s, the company sought to evolve and expand into the car market, and it began collaboration with Cummins Engine Company to produce more efficient diesel engines. Their first car was the Tata Indica, a model that enjoyed an unexpected success both in India and on other European markets, despite the fact that car-analysts gave it bad reviews. The Indica won people over with it's low fuel consumption and powerful engine. It was so successful that Rover began selling it in the UK under the name of CityRover. The second generation of Indica, the V2, was even more successful. Indica's major success gave Tata Motors the financial power to take over Daewoo Motors in 2004, in a effort to take their brand more international exposure. Other surprising acquisitions by the Tata Group include Jaguar and Land Rover as of March 26th, 2008 for a net 2 billion US dollars. Lately, Tata has made known its aggressiveness when it comes to gaining exposure and acquiring new brands.
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2008 - Nano 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 (OneCAT) and the 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.
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CHAPTER III
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countered this by increasing the share of exports in the sources of revenue. Excess debt has led to a high Debt to Equity ratio and this is not good news as the company plans to go for further capital expansion. Also the percentage of cash flow used for CAPEX is increasing 7 Rising interest rates in the economy is a cause of concern as it dampens both capital investments and softens the domestic demand. Positives: The cash flow from operations has grown 11 times compared to last year despite a huge CAPEX. Tata Ace single headedly raised the market share of Tata Motors in LCV segment by 5%. The operating leverage for Tata Motors is higher due to the high fixed costs of CAPEX. But still the overall financial leverage of Tata Motors is well under control when compared to Ashok Leyland
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Internationalization Tata motors has decided to focus on a narrow base of 14-15 countries
where market conditions are similar to that of India As a part of the company's new internationalization strategy, the company has decided to focus on a narrow base of 14-15 countries where market conditions are similar to that of India. In these countries, Tata Motors now has dedicate. Financial Performance of Tata Motors Over the years the company has performed exceptionally well financially inspite of the cyclical nature of the industry. A critical analysis of the financial statements provides us with the following insights .The issue of Cyclicality is plaguing the automotive sector and the future outlook in India is not great considering the robust performance of the past 3 years. Excess debt has led to a high Debt to Equity ratio and this is not good news as the company plans to go for further capital expansion. Also the percentage of cash flow used for CAPEX is increasing 7. Rising interest
rates in the economy is a cause of concern as it dampens both capital investments and softens the domestic demand. Positives the cash flow from operations has grown 11 times compared to last year despite a huge CAPEX. Tata Ace single headedly raised the market
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share of Tata Motors in LCV segment by 5%. The operating leverage for Tata Motors is higher due to the high fixed costs of CAPEX. In these countries, Tata Motors now has dedicated manufacturing facilities, marketing teams and sales teams. The idea is to have self- sustained operations in this narrow band of countries. The company evaluates locations on the basis of market opportunities and labour skills. In the framework pertaining to international expansion strategies, Tata Motors can be identified as an Extender, and is focusing on expanding into markets similar to those of the home base, using competencies developed at home
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Latin American Operations Tata Motors has taken its alliance with Fiat to produce a new one-tonne pick-up truck, for Latin American markets from Fiat's facility in Argentina. This arrangement will also see Tata Motors forming a joint venture with a subsidiary of Iveco, the commercial vehicle division on Fiat, to set up a distribution network. Now that Tata Motors has established a sustainable model in some countries, its main challenge is to replicate this model in other countries as well. How to replicate this strategy for other markets? Sustainable competitive advantage lies not in one, but a combination of multiple resources, each of which individually need not necessarily be the best, but in overall weighted average terms, presents the best solution. For Tata Motors, the combination of resources providing it competitive superiority on a weighted average basis includes
dependable service network and extensive channel reach. Tata's service and distributor network is by far the most extensive of any player in the trucks industry. Hence in overall weighted average terms, Tata Motors still has a winning proposition Recommendation Matrix Based on a close scrutiny of the resource based view of Tata Motors and the challenges it faces, we propose a recommendation matrix arranged along three broad dimensions Tangible, Intangible and Capabilities.
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with small garages, train them and certify them as 'Tata Authorized Service Station. Product Portfolio Tata Motors has positioned ACE as a multipurpose vehicle (MPV). This is where Tata Motors can learn from the Maruti small car strategy that posits that 'there is no such thing as a small car buyer'. Hence Tata Motors should endeavour to move form a multi-purpose positioning to a mass customization positioning for ACE, wherein multiple variants are offered on the ACE platform, each uniquely suited for a specific application such as tippers, long base trawlers, milk carriers. Intangible In intangible terms, Tata Motors needs to bolster its brand loyalty, by providing a unique customer experience.
MARKETING STRATEGIES
NANO The introduction of the Nano received media attention due to its targeted low price. The Financial Times reported "If ever there were a symbol of Indias ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of home grown engineering, the $2,200 (1,490, 1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." The car is expected to boost the Indian economy, create entrepreneurialopportunities across India as well as expand the Indian car market by 65% The car was envisioned by Ratan Tata Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly people's car. Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano Tata Group is expected to mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide.
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The Tata Safari is an SUV produced by Tata Motors of India. It is the first SUV to be designed, developed and manufactured "entirely" in India. The SUV was first released in 1998 with a 2.0 litre Turbo Diesel engine. It was this modified version that won the Motor Forum's Car of the Year for 2007, in the SUV category. Voted by the users, it beat out rivals such as the Toyota RAV4, Land Rover Freelander and Honda CR-V. In October 2007 Tata unveiled the 2.2-litre Safari DiCOR which had an increased power output of 143 PS (105 KW). But it was shortly replaced by the more advanced DiCOR 2.2 VTT (Variable Turbine Technology) engine which had a power output of 140 PS (103 kW) at 4000 rpm and a torque output of 320 Nm (236 ftlbf) at 1700 rpm. It is widely regarded as the best engine used by Tata Motors
Safari recently did a major overhaul and launched it with new look and new engine DICOR and a new positioning. The new DICOR says " Reclaim your life" taking the campaign to a higher level and trying to connect with the customer at a higher plane
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Tata Novus is one of the best selling commercial trucks in South Korea
Tata Indica, Tata Motors aimed to increase its presence worldwide. In 2004, it acquired the Daewoo
Commercial Vehicle Company of South Korea. The reasons behind the acquisition were Companys global plans to reduce domestic exposure. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy.
Tata Motors MARCOPOLO has also formed a 51:49 joint venture with Marcopolo a Brazil-based global leader, lead by Brian Behrle, in bus body building. This joint venture is to manufacture and assemble fully-built buses and coaches targeted at developing mass rapid transportation systems. The joint venture will absorb technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will provide know-how in processes and systems for body building . . Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment Joint ventures Tata MarcoPolo NON-AC City Bus in Delhi. The NON-AC version is only used in Delhi while AC versions are used in Bangalore, Mumbai and Delhi.
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Tata Ace It was India's first mini truck Tata Ace, India's first indigenously developed sub one ton mini-truck, was launched in May 2005. The mini-truck was a huge success in India with auto-analysts claiming that Ace had changed the dynamics of the light commercial vehicle (LCV) market in the country by creating a new market segment termed the small commercial vehicle (SCV) segment. Ace rapidly emerged as the first choice for transporters and single truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6 percentage to 28,537 units due to the rising demand for Ace. The Ace was built with a load body produced by Autoline Industries. By 2005, Autoline was producing 300 load bodies per day for Tata Motors. Ace is still one of the number maker for TML, TML sold the 2,00,000th Ace in August 2008, within 4 years since its introduction. Tata Ace has also been exported to several European, South American and African countries.. In 2007, Tata Motors generated revenues of ` 31,884.69 crore. Tata Prima was unveiled during the Geneva Motor Show in 2009.
In 2004, Tata Motors bought Daewoo's truck manufacturing unit, now known as Tata Daewoo Commercial Vehicle, in South Korea. In March 2005, it acquired a 21% stake in Hispano Carrocera SA, giving it controlling rights in the company.
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On 26 March 2008 Tata Motors agreed to purchase Jaguar Cars and Land Rover from Ford Motor in a deal worth $2.3bn (1.15bn)Tata Motors has also acquired from Ford the rights to three other brand names: Daimler, Lanchester and Rover. There is definite cost advantage as labor cost is 8-9 percent of sales as against 30-35 percent of sales in developed economies. In India, it has focused on providing economical transport solutions in consonance with its values of safety, quality, and environmental care. Its competitive advantage is its high technology which makes the vehicle avery comfortable option to travel through.
TATA is aimed at helping India emerge as a hub for global manufacturing and sourcing for auto parts
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PROCESSES
PEOPLE
PRODUCT
PRODUCT
BRAND
PACKAGING
INNOVATION
QUALITY
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A . Brand : Advertising is often used to make consumers aware of a products special low price or its benefits. But an even more important function of advertising is to create an image that consumers associate with a product, known as the brand image. The brand image goes far beyond the functional characteristics of the product. The products of Tata Motors have many special characteristics to them, but when consumers think of it, they not only think of its features, but they may also associate it with quality, performance, class. All of these meanings have been added to the product by advertising. Consumers frequently buy the product not only for its functional characteristics but also because they want to be identified with the image associated with the brand. Tata Motors have been successful in creating and maintaining a professional brand image. B . Packaging : A vehicle cannot have a material packaging. Here, packaging refers to and effective assembly of features. Tata Motors provide many innovative features to suit the target customers and the product. E.g. Tata Safari Dicor has Reverse Guide System which includes a weather-proof camera to help the driver while reversing the vehicle. C. Innovations : The various motives behind buying an automobile are Need, Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to bring new innovations in their product. Tatas have an industrial experience of over 100 years and they are well known with the Psychology of Indian customers, who desire more at less price. This experience has helped them to develop products which fulfill the expectations of Indian consumers. D. Quality Control : Tata Motors have their Quality Control standards and the QC Dept. ensures that the customer does not face any inconveniences of a defective product.
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PRICE
PRICING
STRATEGY
ALTERATION
DISCOUNTS
a. Pricing Strategy The prices are fixed keeping in mind a number of factors. Tata Motors give a relative price advantage as compares to its competitors. The various determinants of price are i. Market Condition ii. Costs incurred iii. Profit percentage desired by the Co. iv. Dealer Profit b. Alterations : The Company does not allow any alterations to any of the features of the product. If there is an alteration which affects the performance of the engine, then the warranty becomes void. However, there may be alterations in the accessories, if desired by the customer. c. Discounts : Discounts are decided by the Co. every month. Any further discounts made from the profits of the dealer. However, the Co. may compensate the dealer for the discounts allowed to a certain extent.
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PROMOTION
PERSONAL SELLING
ADVERTISING
SALES PROMOTION
PUBLIC RELATION
a. Personal Selling : There is minimal personal selling involved. The Sales Officers at the dealerships collect prospective customer databases and perform cold calling to attract customers. b. Advertising : Advertising is a form of commercial mass communication designed to promote the sale of a product or service. Tata Motors is responsible for the advertising of its products. The dealer does play any role in the advertising. The various media used for advertising are T.V., Newspapers, Magazines, Hoardings, Internet etc. The dealer conducts point-of-purchase displays to advertise the products. The advertisements done by the Co. help the dealer to capitalize on the market. c. Sales Promotion : The purpose of sales promotion is to supplement and coordinate advertising and personal selling; Sales promotions are designed to persuade consumers to purchase immediately by providing special incentives such as cash rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali.
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d. Public Relations : Public Relations is a management function that creates, develops, and carries out policies and programs to influence public opinion or public reaction about an idea, a product, or an organization. The Co. takes serious measures to maintain good public relations. The Co. follows business ethics to ensure that the customer is satisfied and receives good service whenever and wherever he desires.
PLACE
CHANNEL OF DISTRIBUTION
PHYSICAL DISTRIBUTION
a. Channels of Distribution : In case of vehicles, dealership method of distribution and sales is generally adopted. Tata Motors have also adopted dealership method of distribution of its products. The dealers purchase products from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer gets a profit within these prices. As the Co. deals in commercial and passenger vehicles, there may be a single or distinct dealerships to market its commercial and passenger vehicles in a town. However, if there is a single dealership appointed, then the commercial and passenger vehicles are managed under Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively. Tata Motors have contracts with the Government of India and it supplies buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities
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of vehicles are ordered by a Govt. Dept. or a private company. The sales, distribution and billing of these are looked after by the Co. itself. b. Physical Distribution : The commercial vehicles are manufactured
at Jamshedpur, Lucknowand Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of its products in the market.
5. People
Tata Motors owe our success to the highly motivated and talented staff. Our recruitment division picks the crme-de-la-crme 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.
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Joint Ventures
1. On May 2006 Tata Motors, India and Marco Polo, Brazil announced joint venture to manufacture fully built buses & coaches for India & markets abroad. This venture helped Tata to cater to the growing demand in India and abroad. 2. On July 2006 signed a Memorandum of Understanding with Fiat Group to establish an industrial joint-venture in India to manufacture passenger vehicle, engines and transmissions for the Indian and Overseas markets. 3. On December 2006 Tata Motors and Thonburi Automotive Assembly Plant co., a Thailand based independent assembler of automobiles, announced formation of a joint venture company in Thailand to manufacture, assemble and market pick-up trucks.
1. On August 2006 Tata Group entered Russia with diverse range of trucks and buses. It hoped to sell 6000 vehicle unit/year for the next 3 years. 2. On October 2006 Tata Motors forayed into Ghana with new range of vehicle. 3. On January it commissioned a plant in Pakistan to assemble Tata Daewoo Trucks.
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A recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year. A recession is also preceded by several quarters of
slowing down.
Causes:
An economy which grows over a period of time tends to slow down the growth as a part of the normal economic cycle. An economy typically expands for 6-10 years and tends to go into a recession for about six months to 2 years. A recession normally takes place when consumers lose confidence in the growth of the economy and spend less.
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This leads to a decreased demand for goods and services, which in turn leads to a decrease in production, lay-offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus stock markets fall on negative sentiment. Impact of a US recession on India: Indian companies have major outsourcing deals from the US. India's exports to the US have also grown substantially over the years. The India economy is likely to lose between 1to 2 percentage points in GDP growth in the next fiscal year. Indian companies with big tickets deals in the US would see their profit margins shrinking. The worries for exporters will grow as rupee strengthens further against the dollar. But experts note that the long-term prospects for India are stable. A weak dollar could bring more foreign money to Indian markets. The whole of Asia would be hit by a recession as it depends on the US economy. Asia is yet to totally decouple itself (or be independent) from the rest of the world.
Global recession has devastated the global auto industry with pinching effects on the Indian auto industry. India is a strong and growing economy but the hit of recession has put red marks on the entire balance sheet of the Indian economy. The financial performance of the company was adversely affected by the sharp de-growth in the Indian automobile sector. The commercial vehicle market shrunk by 17.4% to 415,652 vehicles and Tata Motors sales shrunk by 15.2% to 265,373 vehicles. Market share of the company in the commercial vehicle sector improved, however, from 62.2% to 63.8%. The passenger vehicles segment reduced only by 0.5% to 1,525,313 vehicles but the sales of the company reduced more sharply by 4.8% to 207,512 vehicles. Market share of the company in the passenger car sector dropped from 14.2% to 13.6%. The overall vehicle market reduced by 4.7% to 1,940,965 vehicles and Tata Motors overall vehicle sales
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reduced by 10.9% to 472,985 vehicles. The companys overall market share reduced from 26.1% to 24.4%.
All the three major car manufacturers (Chrysler, Ford ,Toyota) have reported declined growth after the hit of recession. After the industry experienced a heavy fall in the month of August due to inflation, September proved to be a promising month with things setting out at the right place. Then again the market went in the negative terrain swayed by the wind of recession. October usually is considered to be the best month for car sales because of the festive season. Unfortunately, this year it proved to be a curse for the Indian auto industry. All the three major car manufacturers have reported declined growth after the hit of recession. After the industry experienced a heavy fall in the month of August due to inflation, September proved to be a promising month with things setting out at the right place. Then again the market went in the negative terrain swayed by the wind of recession. October usually is considered to be the best month for car sales because of the festive season.
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2009-10 was the year of innovation at Tata Motors and hence we have selected Wheeling Innovation as the theme for this report. Innovation is an intrinsic part of our growth strategy and we demonstrate it through our approach in everything we do. From changing customer needs to managing scarce resources, elements of innovation are embedded into our business processes. Our culture of perpetual search for excellence is attributed to our ethos and our efforts to serve customers over several decades by bringing continuous innovation in our products and processes. We have created several breakthrough products that have changed market dynamics and helped in providing our customers a new experience and value for money . In the 80s we introduced the 407 platform for Light CVs a cost effective alternative to the then existing Japanese vehicles. In the 90s we presented Indica Indias first indigenously designed passenger car, that offered more car per car to the user. In 2005 we introduced ACE Indias first mini-truck to meet the needs of last mile distribution, offering the functionality of a 4-wheeler at the price of a 3-wheeler. In 2008, we introduced Nano the peoples car at a price point that was never heard of, with the functionality of a standard car and compliant to current safety and environmental regulations. The Nano has to its credit a record 37 patents. In 2009, we launched the World Truck, a new generation of trucks that match with the best in the world and perform at a lower life-cycle cost. We have adopted the Tata Business Excellence Model (TBEM) to ingrain innovation across all business processes. This model is based on the Malcolm Baldridge National Quality Award for business
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excellence and principles of Balanced Score Card. As an outcome of implementation of this model, we have deployed IT systems across the value chain, institutionalized a Stage Gate process to develop right products and implemented a collaborative product development approach that utilizes the capabilities of suppliers, design houses, subsidiaries and associate companies specializing in different verticals. Our innovation agenda is driven by our people and we diligently identify right talent and nurture them to become future leaders and achieve business goals. At a global level, we continue to position ourselves as a local company in the country of operation in order to address the needs of all stakeholders. With a strong financial position, balanced portfolio of products, welldefined growth plan, and access to national / international markets, we feel that we are now in a better position to create sustainable value and achieve responsible growth. We are committed to achieving our goals as responsible citizens and assign high priority to health, safety, well-being and development of our people.
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Passenger Cars Tata passenger cars include the small car the Tata Nano, the compact cars - Indica and the Indica Vista, the mid-sized cars - Indigo and the newly launched Indigo Manza and the station wagon version of the Indigo, the Indigo Marina. Tata have expanded our car lines by introducing several variants to suit different customer preferences. For example, the Indica gasoline variant, Xeta, is available with a dual fuel (petrol and liquefied petroleum gas) engine. Jaguar has established its presence in the premium car segment. With the discontinuation of production of the X Type in December 2009, Jaguar currently produces three car lines XK, XF and XJ. A new generation of the Jaguar, XJ, was also unveiled in London in July 2009.
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Utility Vehicles: Tata manufacture a number of utility vehicles, including the Sumo, and the sports utility vehicle, the Tata Safari and the lifestyle pickup, the Xenon XT. The Sumo, the Safari and the Xenon XT have variants to meet different consumer preferences such as the Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection Common Rail (DICOR) engine and the Sumo Grande, an SUV with the comforts of a family car. Tata have unveiled Aria, our next generation of premium SUV powered by a 2.2 L DICOR engine at the Auto Expo 2010. Land Rover produces five car lines under the brands of Range Rover and Land Rover, and provides Tata with presence in premium all-terrain vehicles. Range Rover is the premium range consisting of Range Rover and Range Rover Sport, and the Land Rover brand comprises of the Defender, Discovery and Freelander vehicles. Light Commercial Vehicles: Tata manufacture a variety of light commercial vehicles, or LCVs, including pickup trucks, trucks and buses with a GVW of between 0.7 tonne and 7.5 tonnes. This also includes the Ace, Indias first indigenously developed mini-truck with a 0.7 tonne payload, the Magic, a passenger variant for commercial transportation developed on the Ace platform, and the Winger. Medium and Heavy Commercial Vehicles: Tata manufacture a variety of medium and heavy commercial vehicles, which include trucks, buses, dumpers and multi-axled vehicles with GVW of between 9 tonnes to 49 tonnes. In addition, Tata manufacture a range of high horsepower trucks ranging from 220 horsepower to 500 horsepower, including dump trucks, tractor-trailers, mixers and cargo vehicles. During fiscal 2010, Tata unveiled a new range of trucks, referred to as the as Prima line, to Tatas customers in India, South Korea, and expect to extend the offer gradually to other countries such as South Africa, the other SAARC countries, Middle East and various countries in Africa.
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TATA MOTORS MARKETING GUIDED BY A CLEAR VISION Passenger Car Business Unit (PCBU) Vision To develop TATA into a world class Indian car brand for innovative and superior value vehicles. World class in: Product appeal and styling - clean, contemporary lines and shapes Interior space and passenger comfort Quality and reliability Superior value in offering: Lowest ownership cost Relevant cost effective technology More content at same price point as competition Mission To be the most admired multi-national Indian car company producing vehicles that people love to buy To create an organization that people enjoy working for, doing business with and investing in. Commercial Vehicle Business Unit (CVBU) Vision To be a world class corporate constantly furthering the interest of all its stakeholders. Mission Shareholders: To consistently create shareholder value by generating returns in excess of Weighted Average Cost of Capital (WACC) during the upturn and at least equal to Weighted Average Cost of Capital (WACC) during the downturn of the business cycle. Customers: To strengthen the Tata brand and create lasting relationships with the customers by working closely with business partners to provide superior value for money over the life cycle. Employees: To create a seamless organization that incubates and promotes innovation, excellence and the Tata core values.
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TATA MOTORS MARKETING Vendor and Channel Partners: To foster a long-term relationship so as to introduce a broad range of innovative products and services, that would benefit our customers and other stakeholders. Community: To proactively participate in reshaping the countrys economic growth.To take a holistic approach towards environmental protection.
A clear view is essential, to maintain a momentum and to race ahead at high speeds. Tata are guided by a clear vision, well supported by management systems that help us achieve unattainable goals and demonstrate sound performance.
Sales
26.6% 34.3%
PASSENGER CARS UTILITY VEHICLE LIGHT COMMERCIAL VEHICLE MEDIUM AND HEAVY COMMERCIAL VEHICLE
5.2 % 33.9 %
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Sales
33% 27.4%
PASSENGER CARS UTILITY VEHICLE LIGHT COMMERCIAL VEHICLE MEDIUM HEAVY COMMERCIAL VEHICLE
31.9%
7.7%
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SALE OF VEHICLE CATEGORY IN PERCENTAGE Fiscal 2010 Category Units 232,006 Passenger Cars 35,107 Utility Vehicle 228,987 Light Commercia l Vehicle 179,661 Medium, Heavy Commercia l Vehicle 675,761 Total 100 505,399 100.0 0 597,197 100 26.6 138,601 27.40 191,394 32.1 33.9 160,787 31.90 173,382 29.0 5.2 39,049 7.70 50,130 8.4 % 34.3 Fiscal 2009 Units 166,962 % 33 Fiscal 2008 Units 182,291 % 30.5
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ADVERTISEMENT
Online Advertisement
First step we start before lunching Tata Nano, we do the online advertisement. Tata Nano created a Web site www.tatanano.com on March 2009 to better communicate with the customers. In the Web site, we posted the photo categories and videos to provide customers the information and special features of Tata Nano and bring them inside the company. In addition to photos and videos, the web site links to recent news about Tata Nano and space for public feedback. Besides that, Blogs have become an important outlet for word of mouth which are regularly updated online
JAGUAR ONLINE ADVERTISEMENT
diaries. Blogs is bringing together people with common interests. They vary wide and can influence a vast audience due to many internet users have read Blogs. We can establish the blog network and carefully monitoring to find out what's on people's minds especially the potential customers. This is a cheapest and good way to build up brand awareness.
Television Advertisement
Television advertisement is very expensive but this is the most powerful to perform the Tata Nano to the public by demonstrating Tata Nano attributes and persuasively explaining their corresponding consumer benefits. By lower advertising budget, we cannot do the TV advertisement in whole day, so we just choose the prime time (7pm 11pm) to place the advertisement. By properly designed and executed TV advertisement can improve brand equity and affect sales and profits.
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Radio Advertisement
Most of the Malaysians listen to the radio daily. Now a day have many facilities such asMP3, hand phone and so on, is convenience for the people to listen the radio anytime at anywhere, This is a cheap and pervasive medium for us to create the brand awareness by repeatedly listen the advertisement and the brand name. Advantages of the radio advertisement are flexibility, quick response and also more effective media for reaching teens.
Newspaper Advertisement
Beside that the radio, most of the Malaysians also will saw a newspaper everyday. So this is good market coverage. From here, Tata Nano can get the broad acceptance and good reputation from Malaysians. Newspaper advertising is inexpensive.
Marketing Campaign
This Marketing campaign is base on every four month. Marketing Campaign for July 2009 to October2009Tata Nano will lunch at Malaysia on July 2009. Launching program is very important for positioning which is the act of designing Tata Nano and image to occupy Malaysia in the minds of the target market. Launching program also is one of the promotion strategies to build awareness, through launching at public center. Tata Motor will introduce the Tata Nano to market.
NANO ADVERTISEMENT IN NEWSPAPER
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SOCIAL OBLIGATIONS
Energy and Climate Change
The maximum impact of a vehicle on climate change is during its use and we continually strive to produce fuel products that and life have lower cycle.
improved emissions
efficiency their
throughout
conservation initiatives.
Sustainable Innovation
The year 2009-10 was the Year of Innovation for Tata Motors, and this was demonstrated by our path breaking products such as the Nano and the World truck. From
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changing managing
customer scarce
needs
to
resources,
Social Responsibility
Building on the legacy of the Tata Group, we at Tata Motors contribute to the development of society through varied and numerous initiatives, spread across geographies. Environment, education, health and enhancing employability are our focus areas. C A R I N G F O R THE SOCEITY
perception
comprehend
emerging needs of the community. The surveyed highlighted that a significant 43% of people benefited from the infrastructure built by Tata. Also more than 50% agreed that tata were committed towards social responsibility and more than 45% agreed that we were environmentally responsible in comparison to our peers which depicts the community expectations based on which Tata categorised them into four major categories namely employability, environment, education and health on which our initiatives are based on.
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Enhancing Employability
Tata actions on
employability thrust areas are focused on youth and women. They run across the chain from technical
Women
establish cooperative societies, manufacturing a diverse range of items from traditional food items to components for our vehicles. Farm development through enhancing irrigational facilities, introducing modern agricultural practices and supplementary activities like apiculture, pisciculture and vermi-composting has led to enhanced income levels of farmers. Vocational training in computers, rural BPO, mobile repairing and AC refrigeration has led to gainful employment of the village youth. Tata also encourage the formation of Self Help Groups (SHGs) in villages, provide them with guidance in initial stages and trainings in areas such as basic book keeping and entrepreneurship skills.
Vocational Training
Training is provided to the socially and economically
disadvantaged groups through the Mechanic Motor Vehicle Trade course in partnership with the Ramakrishna Mission, an NGO, at Thane, Maharashtra. This course is aimed at
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training students primarily from the tribal belt and has successfully trained seven batches of students. The result was an increase of placement rate by 80%, employment in various service stations, while some have also started their own repair shops.
Empowering women
Development of women plays an important role in the overall advancement of a family. Keeping this in mind, we provide
embroidery,
charkha, food products, beautician training and manufacturing of utility items to women. These vocational training programmes have been organized for empowering women through Self Help Groups (SHG) and Mahila
Mandals. The socially disadvantaged women of Murlipur village, Lucknow received an intensive six months training for sub-assembly work.
Nurturing Skills
Tata run several training programmes within the manufacturing units like the Full-time Apprenticeship Programme Programme (FTA), (JTA) Job and Trainee Apprenticeship Vocational
Technical
Apprenticeship Programme (TVA) which have catered to the advancement of students by significantly raising employment. Reservation of seats for SC/ST and OBC candidates in these programmes are as per the Apprentice Act, 1995.
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Affirmative Action In line with the Tata Group initiative of Affirmative Action, the company is implementing initiatives across the 4 Es of Employment, Entrepreneurship, Employability and Education, with a clear focus on the latter for the Scheduled Castes and Scheduled Tribes.
Environment
Under the thrust area of environment we focus on activities related to social forestry, sustainable farming practices, irrigation, water shed management, afforestation and biodiversity preservation. Our activities have an impact on both rural and urban areas, ranging from wells and check-bunds in remote villages to green belts and lakes in urban habitations.
Tree transplantation
At Pantnagar, Tata initiated a tree transplantation initiative where in the trees that required to be cut were relocated and replanted at an appropriate location. This procedure of relocation was done taking safety measures like application of pesticides on the roots of the trees to avoid fungal infection and insect attack. Trees that were relocated were replanted with proper support and balance and their growth was monitored. This resulted in saving 25 years of growing a new tree of the same size. Education To contribute towards developing a sustainable society, and to fulfil our role as a corporate citizen, we lay a lot of emphasis on educational activities across India. Our support towards education runs across the chain from supporting schools through upgrading existing infrastructure and facilities to improving the quality of education through teachers training programmes and extra-curricular activities for the children. We create school infrastructure, support teachers training, provide scholarships and help organizations, working among the disadvantaged or special children.
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Chairman, Mr..Ratan Tata, with the India Business Leader Award for building the brand India abroad. Tata Motors has won top three honours at the annual Good Green Governance (g3) Awards 2009 Tata Motors has been declared as the Commercial Vehicle Maker of the year in the CV Commercial Vehicles Awards 2010, instituted by CV Magazine.
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Tata Motors won the Gold award at the Readers Digest Asia Trusted Brand Awards for the 4th consecutive year. Tata Motors is among the countrys most admired companies for their Corporate Social Responsibility initiatives, according to a survey conducted by global consultancy firm, Nielsen. CVBU Pune plant was awarded a Trophy and Certificate for Green India Awards-2009 & was declared as Green Leader by FROST & SULLIVAN, Bangalore. Tata Motors CVBU was awarded the Golden Peacock award for Occupational Health & Safety for the year 2010. ACE Plant at Pantnagar plant won first prize in Automobile Manufacturing sector, an award for National Energy Conservation Awards-2009 by Bureau of Energy Efficiency (BEE), Ministry of Power, GoI. Car Plant at Pune bagged the First Prize in Safety, Health & Environment (SHE) competition organized by the Confederation of Indian Industry (CII), Western Region, for the year 2009-10. Jamshedpur plant won the Best Entry Award for the Energy Conservation (ENCON) Contest 2009-10 organized by the Confederation of Indian Industry (CII) in the Eastern region (ER). Lucknow has been awarded the Excellent Energy Efficient Unit Award at the 10th National Awards for Excellence in Energy Management - 2009 conducted by CII - Godrej Green Business Centre at Chennai.
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CHAPTER IV CONCLUSION
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CONCLUSION From this project we conclude that the marketing strategies of Tata motors are according to market. They always look after their consumers and their needs. They make changes in their product what consumer wants, thats why most of the consumers, are satisfied from the company. Company wants that every people can purchase their product so, they have product from low price to high price with number of different styles and designs without compromising product quality. Company is also providing good services to their customers. Company has its own show rooms and service centres in different places so customers cant face many difficulties to purchase their products. Success will largely be determined to the extent a company can differentiate itself in terms of intangibles that go with a car. Success could well hinge on the best of bundle of services that a carmaker can provide.
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QUESTIONNAIRE
Q. Which Indian motor car company do you prefer? 1. Maruti Suzukhi 2. Mahindra & Mahindra 3. Histustan Motors 4. Chinkara Motors Q. What do you think of durability and quality assurance of Tata Motors? 1. Excellent 2. Good 3. Average 4. Poor Q. Would you recommend Tata Motors to others? 1. Yes 2. No. 3. Dont Know Q. Which section of Tata Motors do you think is the best? 1. Light Commercial Vehicles 2. Passenger Vehicles 3. Heavy and Medium Commercial Vehicle 4. Utility Vehicle Q. What do you think of Tata Motors after sales services? 1. Excellent 2. Good 3. Average 4. Needs significant improvement
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Q. Why do you think Government of India preferred Tata Motors Bus for passengers bus amongst its competitors? 1. Quality 2. Endurance and Durability 3. Cheap and Feasible 4. Any other reason Q. Which countries do you think Tata motors should target in Utility vehicle segment to emerge as a global competitor? 1. Developed country 2. Developing country 3. Under-developing country 4. Only domestic country Q. Do you think incorporating Jaguar and Land-Rover would help Tata Motors emerge as a Global motor vehicle manufacturer? 1. Yes 2. No 3. Depends on further expansion 4. No idea Q. Do you think introducing Tata Nano in market was an 1. Ambitious idea 2. Potential idea 3. Pessimist idea
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Q. In considering the overall direction of the company's marketing effort, how would you rate A. The financial strength of the company? 1 Excellent 2 Good 3 Fair 4 Poor B. The company's focus on improving customer satisfaction? 1. Excellent 2 Good 3 Fair 4 Poor Q. How well do you remember this advertisement?
1. Remember Add 2. Remember company and product but not ad 3. Remember company but not product or ad 4. Don't remember at all
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