PRESENTATION ONTATA MOTORS

PRESENTED BY :-AVNISH KUMAR

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INTRODUCTIONTata motors is a multinational

corporation headquartered in Mumbai , India

Formerly known as TELCO ( TATA Engineering and locomotive company)

70% cumulative market share in domestic commercial vehicle segments

Founded :- 1945

Founder :- JRD Tata

Headquarter :- Mumbai , India

Key People :- Ratan Tata

Products :- Automobile Engine J .R.D Tata

Tata motors has auto manufacturing assembly plants.

Jamshedpur Pantnagar Lucknow Ahmedabad Pune

South Africa Thailand Argentina

Service :- Financial Service

Revenue :- Rs 74,151 crore (2009)

Net Profit :- Rs 2,505 crore (2009)

Parent :- Tata Group

Subsidiaries :- Jaguar Land Rover TDVC Hispano Carrocera

Formerly known as :- TELCO

ABOUT RATAN TATA….Ratan Naval Tata

(born December 28, 1937, in Bombay, Bombay Presidency, British India)

He is the present chairman of the TATA Group .

CONT…He is also the chairman of major Tata

companies such as

Tata Steel, Tata Motors, Tata Power, Tata Consultancy Services, Tata Tea, Tata Chemicals,

The Indian Hotels Company and Tata Teleservices.

VISION OF TATA MOTORSBest in the manner in which we operate .

Best in the products we deliver .

Best in our value and ethics .

Cost Competiveness through continuous improvements.

Best in class human Capital

MISSION OF TATA MOTORSTo provide passenger vehicles that

offer customers exceptional value , and through this build a company that provides its shareholders with superior returns and is seen by society and other stakeholder as a valuable contributor to their development .

TATA MOTORS CARE …..True to the tradition of the Tata Group, Tata

Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.

CONT…Tata Motors believes in technology for

tomorrow. Their products stand testimony to this. Their annual expenditure on R&D is approximately 2% of our turnover. they have also set up two in-house Engineering Research Centres that house India's only Certified Crash Test Facility. They ensure that their products are environmentally sound in a variety of ways.

TATA’s Market Overview9th largest in the worldProduction of over 2.3 million units4th largest Asian exporter60% commercial vehicle market share.Monthly sales exceeded 100,000 unitsExports mainly to Asia and Africa, gaining

favour in Europe

Market Overview• Number of households able to afford cars

projected to double by end of decadeHigh proportion of purchases financed by

creditHighly competitive market, low costs

attractive for assemblingGlobal giants looking to gain footholdsIndian players expanding operations overseas

Developments from 1945 to 2009

In 1948 steam road roller introduced in collaboration with Marshall Sons (UK).

In 1954- Collaboration with Daimler Benz AG

West Germany, for manufacture of medium commercial vehicle.

In 1959- Research and Development Center set up at Jamshedpur.

CONT…..

In 1977- First commercial vehicle manufactured in Pune.

In 1983- Manufacture of Heavy Commercial vehicle.

In 1986 – Production of 1st light commercial vehicle TATA 407,indigenously designed followed by

TATA 608.

CONT…..1991 – Launch of indigenous passenger car

1st Tata Sierra. One million vehicle rolled out.

1994 – Launch of Tata Sumo, the multi utility vehicle.

1995 – Mercedes Benz car E220 launched. TATA SIERRA TATA SUMO

CONT….1998 – Tata Safari, India’s first sports

utility vehicle launched.

2001 – Indica V2 launched, 2nd generation Indica.

2001- 1,00,000th Indica wheeled out.

CONT……… 2,00,000th Indica rolled out. Launch of the Tata Sumo ‘+’ series. Tata signed a product agreement

with MG Rover of UK .

2003 – On 29th July, J.R.D Tata’s birth anniversary, Tata Engineering becomes Tata Motors Limited.

CONT…. 2004 – Tata Motors & Daewoo

Commercial Vehicle Co Ltd, sign investment agreement and completes acquisition of Daewoo Commercial vehicle company.

Tata Daewoo commercial vehicle co ltd (TDCV) launches the heavy duty truck ‘Novus’ in Korea.

CONT….2005 – Sold 5,00,000 passenger cars. The power packed Safari DICOR launched. Tata Ace, India’s first mini truck launched.

2006 – Tata motors vehicle sales in India cross 4 million mark. Indica V2 Xeta launched. TATA ACE

CONT……2008 – Tata Motors unveils its people’s car,

Nano at the 9th Auto Expo in Delhi.

Tata Motors signs definitive agreement with Ford Motor Company to purchase Jaguar and Land Rover.

CONT….2008 - Tata Motors has formed a 51:49 joint venture in bus body building with

Marcopoloof Brazil. Tata MarcoPolo released this low-floor bus in India and now it is widely used as public transport in Delhi, Mumbai, Bangalore and Lucknow.

CONT…..

2009 – Tata has set up a plant in Sanand, Gujrat for the manufacturing of Nano .

2009 – First Nano car rolled out.

MARKETING STRATEGIESProduct, Branding, and Advertising

Important way of advertising is to create an image or brand image.. Over the years Tata Motors have been successful in creating their brand image especially they use some famous stars as their spokesman.

Other important marketing strategies are such as the packaging, innovations, and quality control.

CONT…… Pricing Strategy

There are various factors to determine a price of a car. These factors are such as market condition (it can’t be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost incurred to build a car, profit by company, dealer profit.

Cont……

Place

Place of dealership does play an important role in Tata Motors. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. This is not only in India itself but also to the world-wide dealership.

CONT…Maintenance and Support

After sales service is also another important marketing strategy for most of the car buyer to choose for the right car. Parts and accessories must also easy to access when it is needed to keep the customer satisfy from buying Tata cars until maintaining the car or even until they sell the car and change to a newer Tata model.

MARKETING MIX

PRODUCTQuality 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.

Brand : Tata Motors have been successful in creating and maintaining a professional brand image.

Packaging : 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.

PRICE Pricing Strategy : 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

CONT…….

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.

PLACEChannels of Distribution :.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

Physical Distribution : The commercial vehicles are manufactured at Jamshedpur, Lucknow and Pantnagar whereas the passenger vehicles are manufactured at Pune plant. From the plant, the finished product is transported to the dealerships.

PROMOTION Public Relations. 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 .

Sales Promotion : The Co. conducts intensive sales promotion during festivals such as festive discounts during Diwali.

PEOPLETata 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 training programmes to build up their entrepreneurial skills and impart comprehensive product knowledge.

PROCESSES

Tata motors follow Balanced Scorecard Collaborative, for achieving excellence in overall Company performance.

PHYSICAL EVIDENCEThe 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.

SWOT ANALYSIS OF TATA MOTORS

STRENGTH OF TATA MOTORS

Investment by foreign players

Foreign Joint Ventures

Government Support

Largest Share in Commercial Vehicle Segment

Leading Brand

WEAKNESSTata has not got a foothold in the luxury

car segment in its domestic, Indian market.

Liquidity problem , delays in payment to the vendors

260 million $ of unpaid dues .

Contrasting brand Images of Jaguar / Land Rover and TATA Motors

OPPORTUNITIESNano is the cheapest car in the World - retailing

at little more than a motorbike. Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano!

Increase in Income Levels

Road Development in India

The increase of global presence in SUV segment

THREATSCredit Unavailability

Hardening of Interest Rates

Fuel Prices

Input costs

Global Competition

CRM FOLLOWING BY TATA MOTORS

Tata Motors needed a standardized application for its 1,200 dealers and their 10,000 users across the country.

The goal was to ensure stronger dealer relationships, improve operational efficiency and provide a better customer experience.

KEY SUCCESS FACTORS Fast entry on UK market

Implementation of strategies designed to protect company’s share on Indian market

PRODUCT WISE COMPETITORSCOMMERCIAL VEHICLE – SWARAJ ASHOK

LEYLAND FORCE

• SAFARI - SCORPIO INNOVA XYLO

SUMO - BOLERO

CONT……….INDICA - SWIFT WAGON R SANTRO ALTO

INDIGO - SX4 VERNA

PRODUCTS OF TATA MOTORSPassenger cars and utility vehicles Tata Xover Tata Nano Europa Tata 1616 Starbus Tata Marcopolo buses in the Delhi

BRT.

CONT…… Tata Sumo/Spacio Tata Safari Tata Indica Tata Indigo Tata Indigo Marina Tata Winger Tata Magic Tata Nano Tata Xenon XT Tata Aria

CONT…..Commercial vehicles

Tata 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 1510/1512 (Medium bus) Tata 1610/1616 (Heavy bus)

CONT… Military Products Tata LSV (Light Specialist Vehicle) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard

top, soft top, 4x4, and 4x2 versions Tata LPTA 713 TC (4x4) Tata LPT 709 E

MARKET ENTRY CHOICETo maximize the speed of entry and

minimize the risk of failure Tata Motors should choose the entry mode which provides the fast access to customers. At the same time, the entry mode shall secure certain long-term benefits like access to market knowledge and the development of firm’s presence on the new market.

DEFENSIVE MEASURE IN INDIAN MARKET

To protect its market share against the aggressive expansion of competitors the company needs to implement defensive strategy. The company should develop its service centres network to maximise its geographical coverage and pre-empt the entry of competitors.

SEGMENTATION

BASES OF SEGMENTATIONGeographical

• Indian Standards• Indian Specifications and adjust to Indian roads

Psychographic

• A Utility Car for family purpose. • Tata Motors brought in Vista to shed it’s cab image.

Demographic

• Middle income group• Ride quality is improved so any age or gender can use it with ease

Behavioural

• People use it as a pick up car• Use it as office car because of the mileage benefit

NAME TARGET BENEFITS POD TAGLINEIndica ,TATA MOTORS

Small –carConsumers whoWant a more spacious car

Spaciousness A small spacious car with no extra cost

“More car per Car”

Indigo Mid Sized Comfort – Power steering

Safety , Luxury at affordability

Spoil Yourself

Marina Mid sized Family

High Powered engine , fuel - efficiency

spacious Carry you world in style with you

Nano, Tata A middle class family that needs a car but cannot afford one

Affordable price, very high fuel efficiency

An engineering marvel in terms of cost, fuel, and space efficiency

The people’s car

safari Sports utility Durable and reliable and rough & tough

Engine options of TCIC , Dicor , & MPFI

Reclaim your life

Land Rover High Powered SUV for Sporty riders

Luxury , International Quality

Updated Terrain Response SystemAdaptive Dynamics

The most well-travelled vehicles on Earth

NAME TARGET BENEFITS POD TAGLINE

Tata sumo For Large families

Spacious , effciency , Multi Utility

Reliability , Efficiency , low cost of ownership

“Reclaim your life!”

Sumo Grande For high end transportation and a sporty family car

World- class styling , technology , luxury and safety features

A vehicle in middle – end . Stylish and Trendy

More than meets the eyes

Victa Large families

High Powered engine , fuel - efficiency

Spacious, stylish inteririors

What you try is who you are

Positioning

Land rover – For High Income customers

Indica vista – For Middle Income customers

Tata Nano – For Low Income customers

ANALYSIS

ANALYSIS OF 2008 -2009FY 09 – loss INR 25bn. Loss first time in 8 years

Number of employees:

22000

Domestic Sale 466171 •Passenger car -200159•Commercial vehicle 265012

JV Fiat•Sale growth by 139% (8075 units)•JLR’s Net loss INR 17.8 bn

Launched •Vista Small Car •XT pick-up•Nano – MARCH 23rd

Domestic Growth

1945 Established as Locomotive

Manufacturer

1954 First

Commercial

vehicle with

Dailmer-Benz

1991  Entered

the passeng

er vehicle market

by launchin

g the Tata Sierra, a

multi utility vehicle

1998 - Launche

d the Indica  the

first fully

indigenous

passenger car of

India.

2005 – Ranked among the top

10 corporation in India

2008- Launched Tata Nano

International Growth

2004 - Acquired the

Daewoo Commercial

Vehicle, South Korea

2005 - Acquired a 21% controlling stake in Hispano Carrocera SA, the leading European bus and coach cabin maker. • 2009, the

company picked up the remaining 79% stake.

2008 - acquired the Jaguar Land

Rover (JLR) business from the Ford Motor

Company

Joint venture wit

h Fiat, Marcopolo 

of Brazil (51:49)

TOTAL SALES TATA MOTORS

Sales

M & HCVLCVCARS UTILITY

24%

38%

32%

6%

SOME LATEST UPDATES…2009-10 sales of 642,686 nos. the highest

ever for the company

Tata commercial vehicles and passenger vehicles post individual highest ever sales

CONT….Tata Motors' total sales (including exports) of

Tata commercial and passenger vehicles in March 2010 were 75,151 vehicles, a growth of 38% over 54,452 vehicles sold in March 2009. The company’s domestic sales of Tata commercial and passenger vehicles for March 2010 were 71,046 nos., a 35% growth over 52,653 nos. sold in March last year.

Commercial VehiclesThe company's sales of commercial vehicles

in March 2010 in the domestic market were 43,285 nos., the highest ever and a 49% growth compared to 29,004 vehicles sold in March last year. LCV sales were 22,438 nos., a growth of 35% over March last year. The LCV sales are the highest ever, led by the Ace family. M&HCV sales stood at 20,847 nos., a growth of 69% over March last year.

Passenger VehiclesThe passenger vehicles business reported a

total sale and distribution offtake of 29,868 nos. (27,761 Tata + 2,107 Fiat) in the domestic market in March 2010, the highest ever in any month and a 17% increase compared to 25,430 nos. (23,649 Tata + 1,781 Fiat) in March last year. Sales of Tata passenger vehicles at 27,761 nos. are the highest ever in any month and a growth of 17% over March 2009.

ExportsThe company's sales from exports at 4,105

vehicles in March 2010 registered a growth of 128% compared to 1,799 vehicles in March last year. The cumulative sales from exports for the fiscal at 34,141 nos. are higher by 2% over 33,410 nos. in the same period last year.

Analyzing CompetitionA systematic attempt to identify and understand key elements of a competitor’s strategy in terms of objectives, strategies, resource allocation and implementation through the marketing mix

REASON FOR CHOOSINGTATA MOTORS It is ranked as 19th largest automaker in the

world based on 2007 figures.

It is 2nd largest manufacturer of commercial vehicle in the world.

Tata Motors is a dual- listed company traded both on both the Bombay stock exchange as well as New York stock exchange.

ACHIEVEMENTS The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata

Motors

PCBU's business excellence initiative has come into its own.

Serious Adoption Award in 2004

Active Promotion Award in 2005

Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively

What drives the Tata Motors Strategy

Instantly push TATA Motors onto global center stage .

Acquisitions and joint venture to enhance product portfolio and knowledge exchange .

Innovation is simply the process by which companies increase their profitability in the market place .

Bring new range of value to their market by bringing media & technology , so that they could carve out an unshakable space in the minds of their customers .

CSR OF TATA GROUPTOWARDS EDUCATION

Tata Motors has contributed towards improving education through infrastructural development for promoting schooling among the villagers and through upgradation of educational facilities

CONT….TOWARDS GREEN MATTERS

Tata Motors concern is manifested by a dual approach –

Reduction of environmental pollution and regular pollution control drives

Restoration of ecological balance.

CONT…TOWARDS COMMUNITY DEVELOPMENT

Tata Motors has been making numerous well-planned efforts in the area of rural development, with specific focus on the following:

Health & Sanitation Employment GenerationCommunity Centres

VALUE FOR MONEY

VFM - TATA NANO

AS Mr. TATA SAID ON LAUNCHING :“The journey started six years ago when we overtook what looked like just another business... a business to give Indian families an affordable transport means, a small car which was very low in cost. It is to the credit of the team what we have achieved today”

"A promise is a promise"Tata Nano has a dealer price of Rs. 100,000

A promise that Ratan Tata has lived up to despite a steep rise in the prices of steel and other input costs.

Despite all these, Tata Nano is safe, affordable and fuel efficient

Major Highlights of Tata NanoWarranty: 18 months or 24,000 km

whichever is earlier

Service Interval: 1st free: 1000 km or 1 month whichever is earlier 2nd free: 5000 km or 6 months whichever is earlier 3rd free: 10000 km or 1 year whichever is earlier Subsequent service every 10,000 kms

Major Highlights of Tata NanoColour Options:

Nano base: Bright red, Ivory white, Summer blue

Nano CX: Bright red, Ivory white, Summer blue, Champagne gold, Lunar silver

Nano LX: Champagne gold, Lunar silver, Sunshine yellow

Nano Merchandise: Nano Phone, Nano Watch, Nano Caps, Nano Bag are all available with dealers.

Hurdles in the Domestic MarketThe profits for the first quarter for the

year 2008-09 were at 3.26 billion

Q3 the sales of passenger vehicles went down to 41,287 units a drop of 14.14%

Tata Motors cut production across different categories.

BEST STANDARD SERVICEPROVIDED BY TATA MOTORS

One year warranty on workmanship on all kinds of repairs.

100% assurance of usage of genuine tata motors spare parts.

24 hours helpline and a break down helpline vehicle.

Best in industry labor charges.

CONT…Usage of specially bended lubricants and

long lasting paints.

Qualified and trained technicians, service advisors and customer relationship officers.

State-of-the-art world class pneumatically automated workshops.

THANK YOU