Strategies at TATA MOTORS

BY:
Saurabh Tamhankar (359)
Ajit Sakhre ()
Mahesh Patil ()
Mandar Bhagwat ()
Sagar Kirme ()
Vinayak Shetty ()
 INTRODUCTION OF TATA MOTORS

• Tata Motors Limited, formerly known as TELCO (TATA Engineering &

Locomotive Co.)

• Established in 1945 in Mumbai, India

• Chairman – Mr. Ratan Tata

• Began manufacturing locomotives

• First commercial vehicle in 1954 in a collaboration with Daimler- Benz AG

INTRODUCTION OF TATA MOTORS

• It is India's largest company in automobile & commercial vehicle.

It’s among the Top 3 Passenger Vehicle Manufacturer in India

• Tata motors ranked 19TH largest automaker in world.

• Tata motors ranked 2ND largest manufacturer of commercial vehicle.

• It have 70% market share, in domestic commercial vehicle.

• 1986 the company created and sold the first Light Commercial
Vehicle.
 SWOT Analysis of Tata Motors
Strengths Weaknesses
► Brand Image ► Lack of competence
► Dealers and service network ► few models lined up
► Large shareholders base for capital ► Not a strong player in luxury
needs segment
► Own steel plants

Opportunities Threats
► largest aspiring middle class ► strong competition
► prospective buyers from 2-wheeler ► safety and realibility
segment ► aggressive policies by maruti
 STRATEGIES

PRODUCT STRTEGY

H.R. STRTEGY

OPERATIONS STRATEGIES

MARKETING STRATEGIES
 Products
TATA
Motors

Military
Vehicles

Passenger Commercial
Vehicles Vehicles
 Product Strategy
• Tata Commercial Vehicles
– High Technology & Expertise
– High Engine Power Vehicles
– Launched 11 New Products (2008 -09 )
– Ex: Trucks & Tractors, light commercial vehicles, Luxury buses &
Compact City Buses
• Tata Military Vehicles
– Specialization in Military Defense Transport Solution
– Introducing new trucks for military defense purpose
– Large Investments in R & D ,to meet international standards
• Tata Passenger Vehicles
– Entered market in 1992, launched Indica, the first fully passenger car.
– Tata Motors developed, Mid-sized sedan Cars (Tata Indica,
Tata Indigo)Mid-sized SUV Cars (Tata Safari)
 Product Strategy- Tata Nano
• Launched in Mumbai on 23rd March,2009 by Mr. Ratan Tata
• Cheapest Car in the World
• Priced at Rs 1 Lakh
• For the Masses. Common Man’s Car
• Received Wall street Journal Technology Innovation Award
• Received Rs.25 Bn from the booking process
• Huge demand in the market ,less supply
• Plan to launch in European Markets
 H.R. STRTEGY

• H.R. philosophy
• Caring, show respect compassion and humanity for colleagues.
• Work cohesively with colleagues across the group.
• Encourage self-sufficiency.

1. Hiring Practices
2. Providing various offers to employees
3. No salary cuts & increase in resources & development
 OPERATIONS STRATEGIES

• Quality management:
Quality management is crucial to effective operations management.
Most recent advancement in quality, such as benchmarking & total quality
management have resulted in advancements to operations management
as well.
• Inventory management:
Innovative methods such as Just-in-time inventory control, can save
cost. more products and more services can be offered to customer
more quickly.
 MARKETING STRATEGIES

• 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
creating a brand image for itself.

Over the years Tata Motors have been successful in creating

their brand image especially they use some famous stars as
their spokesman.
• PRICING

• The pricing policy of Tata Motors is always appreciated by

the public.
• Tata Motors makes use of strategies such as discount and
special promotions every now and then.
• Tata Motors gives discounts based on the company's profit or
from dealer's profit at a certain range.
 
• Distribution Strategy

Tata motors business has been has been extended to the

overseas. i.e. to the Europe, Africa, U.S. & Australia.

Hence it has no. of showrooms in India & outside of India.

The exclusive showrooms are the best distribution channels for

Tata itself.
• SALES PROMOTION

Tata Motors has felt its presence across India and abroad
with its showrooms.

• BRANDING

In case of Tata Motors the branding strategy used is

corporate name assigned with individual product name ,
and the individual name individualizes the new product.
Growth Strategy:

Organic

Growth

Inorganic
Market Global Market

Expansion Diversification

B\W
Integration
Vertical
F\W Related
Integration
Horizontal Unrelated
 Merger Acquisitions & Joint Ventures

• Tata Motors has been aggressively acquiring foreign brands to increase its global
presence.

• 2004 - Bought Daewoo's truck manufacturing unit,

- Now known as Tata Daewoo Commercial Vehicle, in South Korea.

• 2005 - Acquired a 21% stake in Hispano Carrocera, Spain.

•2006 – JV with Fiat to manufacture Passenger Cars and Engines

• 2008 - Purchased Jaguar Cars and Land Rover from Ford Motor for $2.3bn

• 2008 - Acquired rights from Ford, to three other brand names: Daimler,
Lanchester and Rover

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 Other Strategies

• Introduction of New Versions

• Modifications in Older Vehicles. (Sumo)

• Introduction of Cost Effective Cars ( Nano)

• Tapping the Rural Market

• Tata Motor Finance

• Tie up with various State Government for providing Tata Buses for public services.

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 Competitors

• Maruti Suzuki
• Ashok Leyland
• Honda Motors
• Volvo Motors
Commercial Vehicles

• Hyundai Motors
• Swaraz Mazda

• Mahindra Motors

Passenger Vehicle

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 Effect of External Environment on Tata Motors
(2008 – 2009 )
• External Environment
• Market Conditions
• CV sales dripped by 15.2%
• Government Policies • PV sales fell by 4.8%
• Consumer Sentiments • Exports reduced by 38.6%
• Over Capacity in the Market • Total Sales fell by 13.5%

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 Future plans of Tata Motors
• Current Business Condition are Uncertain , however industry expects the
economy to grow by Q4,2009
• Major Future Plans

1. Capitalize on Tata Nano - Fast Delivery

2. Launch New Commercial Vehicles

3. Tie up with more State Govts. for Efficient & Safe City Buses at low cost

4. Launch of Jaguar & Landrover Vehicles in India

5. Bridge the outstanding loans

6. Focus on Cost Reduction

7. Expand Network
 Present and future challenges

• Tata relies heavily on its sales in India.

• Competitors has aggressive launches.

• Joint ventures of competitors.

• Volvo Group and Eicher Motors Joint Venture

• Ashok Leyland’s acquisition with Avia.

• The joint venture between Ashok Leyland and

Nissan Motors.
 Thank You.
References:
• www.tatamotors.com

• www.finance.yahoo.com
• www.automobileindia.com
• www.economictimes.com