&

BrandWagon in association with TATA Motors

presents

Masuk Pasar
A Market Entry & Strategy Competition
It is a Friday evening and Mr. Ashok Kumar, the Head of International Business of TATA
Motors was in a dilemma. He has been asked to make a presentation to the Board of Directors
on Monday, in which he has to chart out the future prospects for TATA Motors. (For details
on TATA Motors, refer annexure 1)

The prospects are many & Kumar has been unable to decide in which direction TATA
Motors should proceed in. Should it search for greener pastures abroad? If it must go
abroad, where should it head to? The Americas? Europe? Asia- Pacific? Or the current
market of the world- Africa?

These thoughts were still swirling in his mind when Kumar heard the telephone ring. It was
none other than Prof. P. D. Gupta, his erstwhile professor at his alma mater: IIFT. Over the
course of their discussion, Prof. Gupta happened to mention his current area of interest:
South-East Asia and in particular the ASEAN markets. Prof. Gupta highlighted the plethora
of opportunities that the recently concluded INDO-ASEAN FTA has provided to Indian
Automobile companies. Kumar realised that Prof. Gupta had just provided a panacea to all
his problems.

With the conversation concluded, Kumar was thinking of a statement which Prof. Gupta had
made: “Not entering the ASEAN market is a bigger risk than the risk of entering the
ASEAN market”

However, Kumar knew that just a brainwave was not enough to convince a Board of astute
and experienced Directors. What is needed is a well thought and detailed strategy of entering
into the ASEAN market, backed up by data and analysis. Kumar still needs answers to lots of
questions even with ASEAN. How should TATA Motors enter the ASEAN market? Which
country/countries should it enter into? What should be the strategy followed? How should it
go about in its marketing strategy? What should be the portfolio of brands which it should
enter with?

Lots of questions… Few answers… Even lesser time…

Think you can help Mr. Kumar??? Don your marketing strategy caps, send in your entries &
stand a chance to win loads of prizes including a PPI with TATA Motors
Deliverables
Stage 1:

 A synopsis of the market entry strategies in the form of a Microsoft Word document
 The synopsis must contain details of the following:

Product Market Selection:

 How will the Indo-ASEAN FTA benefit TATA Motors?
 Which ASEAN country should TATA Motors target from among
Thailand, Malaysia, Indonesia, the Philippines, Vietnam, Laos,
Cambodia, Myanmar, Brunei, and Singapore?
 Target market analysis.
 Potential for the company (5 year analysis)
 Competition Analysis of the Markets

Market Entry Strategy

 What should be the mode of entry? Should TATA Motors enter the
said markets via CBU (Completely Built-Up) unit or CKD
(Completely Knocked Down) unit or by means of SKD (Spare
Knocked Down) units?
 When should they enter the said markets?
.

Marketing Mix
 What should be the positioning of TATA Motors in these markets?
 What should be the product portfolio that they should enter with?
 Marketing Communication & Promotion strategies

Stage 2

 The shortlisted teams will be required to make a presentation at IIFT on 21st

November 2010.
 The Winners and Runners-up shall be decided by the jury which will comprise a
faculty and An industry representative
 Annexure 1

Company Background
From the time it was established in 1945, to having over 4 million vehicles plying on Indian
roads, TATA Motors has come a long way. It is India’s largest automobile company, with
consolidated revenues of Rs. 92,519 crores (USD 20 billion) in 2009-10. 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. The company is
the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer.

TATA's Global Operations

TATA Motors is an automotive force to reckon with having a significant presence across the
world. It has been known to venture into markets abroad for both its commercial & passenger
vehicles operations. However, how it chooses to do so varies from market to market as also
from product to product. Given below is a snapshot of the global presence of the company:

(Source: Tata Motors Website)

Following are some of the different ways in which it enters new markets abroad:

 TATA Motors has been in the process of acquiring foreign brands to increase its
global presence and currently has operations in the UK, South Korea, Thailand and
Spain. TATA Motors acquires foreign companies & through the medium of these
companies launches new products in the international markets. E.g. TATA Daewoo
Commercial Vehicles Company 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 Spanish bus and
coach manufacturer, giving it controlling rights of the company. Via its subsidiaries,
TATA Motors is also expecting to export to South Korea, South Africa, the SAARC
countries and the Middle-East.

 TATA Motors has expanded its production and assembly operations to several other
countries like South Korea, Thailand, South Africa and Argentina and is planning to
set up plants in Turkey, Indonesia and Eastern Europe.

 TATA also has franchisee/joint venture assembly operations in Kenya, Bangladesh,

Ukraine, Russia and Senegal. TATA has dealerships in 26 countries across 4
continents. Though TATA is present in many countries it has only managed to create
a large consumer base in the Indian Subcontinent namely India, Bangladesh, Bhutan,
Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and South
Africa

Given below is a snapshot of the company’s global distributer presence:

(Source: Tata Motors Website)

 Annexure 2

India & The ASEAN

ASEAN is presently India’s fourth-largest trading partner after the European Union, United
States and China. Indo-ASEAN trade stood at $38.37 billion in 2007-08 and is projected to
rise to $ 48 billion in 2008-09.

The FTA is the latest in a series of steps the Indian government has taken after the launch of
its much-vaunted “Look-East Policy” (LEP) designed to improve its ties with the ASEAN
countries and beyond. The FTA is expected to give a huge fillip to sectors like banking,
information technology, telecom, automotives, education and tourism.

As per the India-ASEAN FTA, custom duty on auto parts like pistons, piston rings, bumpers,
gear boxes and radiators would be 0 by 2013. The Indo-ASEAN Free-Trade Agreement
(FTA) on goods is expected to benefit the automotive industry with the Indian automotive
sector keen on establishing a presence in ASEAN countries. The AIFTA will benefit the
automotive industry of both regions as the integrated market will provide larger economies of
scale for manufacturers. Combined light vehicle production is expected to nearly double to
4.6 million with 2.1 million units from India and 2.5 million units from ASEAN.
 Annexure 3
Country wise CAR data

* Indicative data created for a reference point of Case Study. May not be exact.
(Source : TATA motors)
Rules:

1) Teams can register themselves at the Quo Vadis website

2) Each team can have a maximum of three members
3) A student cannot be a member of more than one team
4) All members of the team must be from the same institute
5) There is no restriction on the number of teams from a college
6) The entry must be sent to masukpasar@gmail.com
7) The length of the case solution must not exceed 5000 words
8) Each entry must contain an Executive Summary (1000 words max)
9) Solution format: Font Size – 12, Font Type – Times New Roman, 1.5 line spacing
and the file should be a Microsoft Word .doc or .docx / PDF.
10) All market share, revenue forecast calculations to be done separately in an excel
sheet.
11) The entry name should be in the format specified- masukpasar_teamname
12) The entries must contain a cover page carrying the names, phone nos. & email ids of
all the team members. These details must not be mentioned anywhere else in the
document.
13) The email subject line must be masukpasar_teamname_institute name
14) Please read the case study carefully for detailed instructions and deliverables
15) Short listed students will be intimated by email and on Quo Vadis Website
16) The finalists would present the solution to the top management of TATA Motors Ltd.
at IIFT premises.
17) The decision of the organizers of the contest and the panel of judges will be final and
binding on all contestants

Dates
Stage 1 Deadline : Entries must reach us by 10th November 2010, 23:59:59 hrs
Results of Stage 1 : 12th November 2010

Final Round during Quo Vadis at IIFT Campus

Prizes:
1st Prize: Worth Rs.40,000 + PPI with TATA Motors
2nd Prize: Worth Rs.20,000

Contacts:
Akshay Moorthy : + 91 9999 6222 92
Shweta Gaggar : + 91 93137 04221
Raghav Mehta : + 91 99106 86944