A P ROJECT R EPORT O N

MARKETING S TRATEG
EGY OF T ATA
TA M OTORS
TO

BY D EEPAK
EEPAK P UNJABI

S. Y.B.B.A ROLL N O. 17
 TABLE OF CONTENTS

1. Executive Summary

2. Tata Group Profile

a. History
b. Promoter Companies
c. Group holding structure
d. Company heads
e. Mergers and Acquisitions

3. Tata Motors – Company Profile

(H.R., National Network, International Operations, R & D,

Manufacturing, Management)

4. Marketing Mix – Product, Price, Promotion, Place

5. Before Sales & After Sales Services

6. Products of Tata Motors

7. Findings and Conclusions

8. Problems and Suggestions

9. Bibliography

10. Annexures
 DECLARATION

I, the undersigned, Mr. Deepak G. Punjabi, student of S.Y.B.B.A. from

Bytco College, declare that this project entitled ‘The Marketing Strategy of

Tata Motors’ was carried out by me in the partial fulfillment of the course

B.B.A. under University of Pune during 2007-08. This project was

undertaken as a part of academic curriculum according to the University

rule, norms and by no commercial interests and motives.

PLACE : Nashik

SIGN : ________________

NAME : DEEPAK PUNJABI.

 ACKNOWLEDGEMENT

I would like to express my boundless gratitude to Mr. M. N. Desai, Sales

Manager, Sterling Motors, Nasik for extending his kind co-operation and

providing information regarding the Marketing Mix adopted by Tata Motors.

I would also like to thank Prof. Vikrant Aher, who provided his sound

guidance and extended his support to prepare this project report.

I would like to express my thanks to all other innumerable people, including

my friends and seniors whom I might have forgotten to mention but

nevertheless have played an important role and were an integral part of my

research to make it a memorable one.

Last but not the least, my thanks to J.D.C. Bytco College, Nasik and Pune

University who gave me an opportunity to reap the experience of working in

the esteemed organization.

Deepak Punjabi
S.Y.B.B.A.
J.D.C. Bytco College, Nasik
EXECUTIVE SUMMARY

Automotive industry is one of the major businesses in today’s world and to survive
the intense competition in a market like that of India, an organisation has to adopt
and effective marketing strategy. Organizations are spending millions of rupees on
marketing of their products to ensure perpetual existence in the market.

The objective of adopting intensive and diverse marketing strategies is

1. To increase the sales.
2. To maximize the profits.
3. To ensure long-term establishment.
4. To capitalize a major market share.

Purpose :
The purpose of preparing this project was to study the marketing techniques adopted
by Tata Motors and I have tried to include information not only on the marketing
strategy of Tata Motors but also on the profile of entire Tata Group.
It was great pleasure studying various products of Tata Motors and their marketing
techniques and it has helped me to know the innovative marketing trends in
Automobile Industry.

My research emphasizes on the marketing strategy used by Tata Motors.

The highlights of this study are :
 To Understand the techniques of Advertisement, sales promotion and sales
adopted by the company.
 To Understand the Before and After Sales Services provided.
 To Understand the Marketing Mix adopted by the Co.

For the purpose of the project, I visited Sterling Motors, Nasik, which is a dealership
of Tata Motors in Nasik and met Mr. M.N. Desai, the Sales Manager. He provided me
information about the marketing mix adopted by Tata Motors and the before and after
sales services provided. However, he was unable to provide me with a letter certifying
my visit to the dealership as it was against the Co. policy. Nevertheless, he provided
me with the product brochures which I have attached herewith.
TATA MOTORS – Profile

Tata Motors Limited is India's largest automobile company, with revenues of Rs.
32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial
vehicles in each segment, and the second largest in the passenger vehicles market
with winning products in the compact, midsize car and utility vehicle segments. The
company is the world's fifth largest medium and heavy commercial vehicle
manufacturer, and the world's second largest medium and heavy bus manufacturer.

Five core values

The Tata Group has always sought to be a value-driven organisation. These values
continue to direct the Group's growth and businesses. The five core Tata values
underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and transparency.
Everything we do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity
for our colleagues and customers around the world, and always work for the
benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards
in our day-to-day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the Group and with
our customers and partners around the world, building strong relationships based
on tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.

HUMAN RESOURCES :

The company's 22,000 employees are guided by the vision to be "best in the manner
in which we operate, best in the products we deliver, and best in our value system
and ethics." Tata Motors helps its employees realize their potential through innovative
HR practices. The company's goal is to empower and provide employees with dynamic
career paths in congruence with corporate objectives. All-round potential development
and performance improvement is ensured by regular in-house and external training.
The company has won several awards recognising its training programmes.

NATIONAL NETWORK :

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth
of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The company's manufacturing base is spread across India - Jamshedpur
(Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow
(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur
(close to Kolkata in West Bengal) to manufacture the company's small car. The nation-
wide dealership, sales, services and spare parts network comprises over 2,000 touch
points. The company also has a strong auto finance operation, TML Financial Services
Limited, supporting customers to purchase Tata Motors vehicles.
INTERNATIONAL OPERATIONS :

Tata Motors, the first company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international
automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company,
Korea's second largest truck maker. The rechristened Tata Daewoo Commercial
Vehicles Company has 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 reputed Spanish bus and
coach manufacturer, with an option to acquire the remaining stake as well. Hispano's
presence is being expanded in other markets. In 2006, it formed a joint venture with
the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international markets.
Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's
pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial
joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat
and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata Motors
already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and
Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle
bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina.
The pick-up will be sold in South and Central America and select European markets.

These linkages will further extend Tata Motors' international footprint, established
through exports since 1961. While currently about 18% of its revenues are from
international business, the company's objective is to expand its international
business, both through organic and inorganic growth routes. The company's
commercial and passenger vehicles are already being marketed in several countries
in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. It has
assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal.

RESEARCH & DEVELOPMENT :

The foundation of the company’s growth is a deep understanding of economic stimuli

and customer needs, and the ability to translate them into customer-desired offerings
through leading edge R&D. The R&D establishment includes a team of 1400 scientists
and engineers. The company's Engineering Research Centre was established in 1966,
and has facilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering
technologies and products. It was Tata Motors, which developed the first indigenously
developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in 1998,
the Tata Indica, India's first fully indigenous passenger car. Within two years of
launch, Tata Indica became India's largest selling car in its segment. The ERC in Pune,
among whose facilities are India's only certified crash-test facility and hemi-anechoic
chamber for testing of noise and vibration, has received several awards from the
Government of India. Some of the more prominent amongst them are the National
Award for Research and Development Efforts in Industry in the Mechanical
Engineering Industries sector in 1999, the National Award for Successful
Commercialisation of Indigenous Technology by an Industrial Concern in 2000, and
the CSIR Diamond Jubilee Technology Award in 2004.

The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in
the UK. TMETC is engaged in design engineering and development of products,
supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle Company and
Hispano Carrocera also have R&D establishments at Gunsan in South Korea and
Zaragoza in Spain.

The pace of new product development has quickened through an organisation-wide

structured New Product Introduction (NPI) process. The process with its formal
structure for introducing new vehicles in the market brings in greater discipline in
project execution. The NPI process helped Tata Motors create a new segment, in
2005, by launching the Tata Ace, India’s first indigenously developed mini-truck. The
years to come will see the introduction of several other innovative vehicles, all rooted
in emerging customer needs. Besides product development, R&D is also focussing on
environment-friendly technologies in emissions and alternative fuels.

Through its subsidiaries, the company is engaged in engineering and automotive

solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.

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.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.

Tata Motorfinance :
Tata Motorfinance (TMF), the auto financing arm
for Tata Motors, came into existence in June 2003.
This was a common front-end, jointly formed by BHPC (Bureau for Hire Purchase and
Credit) of Tata Motors and the asset financing arm of Tata Finance. This company was
a virtual entity, with both the divisions maintaining their legal identity, and was in the
market for exclusively financing Tata Motors vehicles. Subsequently Tata Finance was
merged with Tata Motors and in April 2005 TMF became a division of Tata Motors.

Manufacturing

Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenisation. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product
evolution-design, development, manufacturing, assembly and quality control, is
carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the
East, Pune in the West and Lucknow in the North.

Jamshedpur:
Established in1945, the
Jamshedpur unit was the
company's first unit and is
spread over an area of 822
acres. It consists of 4 major
divisions - Truck Factory, Engine
Factory, Cab & Cowl Factories,
and the Novus.

Pune:
The Pune unit is spread over 2
geographical regions- Pimpri
(800 acres) and Chinchwad (130
acres). It was established in
1966 and has a Production
Engineering Division, which has one of the most versatile tool making facilities in the
Indian sub-continent. .

Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among all the Tata
Motors locations and was established in 1992 to meet the demand for Commercial
Vehicles in the Indian market.

Uttarakhand
The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand.
The plant will begin commercial production during the course of the year.
Management

Board of Directors
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. V R Mehta
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Ravi Kant
Mr. P P Kadle
Mr. P M Telang

Senior Management
Mr. Ravi Kant Managing Director
Mr. Praveen P
Executive Director (Finance and Corporate Affairs)
Kadle
Mr. P M Telang Executive Director (Commercial Vehicles)
Mr. Rajiv Dube President (Passenger Cars)
Mr. C
Vice-President (Chairman's Office)
Ramakrishnan
Mr. Shyam Mani Vice President (Sales and Marketing) CVBU
Mr. K C Girotra Vice President (Lucknow Works & FBV)
Mr. R S Thakur Vice President (Finance)
Mr. M V Rajarao Vice President (Manufacturing - Pune)
Vice President (Corporate Finance-Accounts and
Mr. P Y Gurav
Taxation)
Dr. S J Tambe Vice President (Human Resource)
Mr. Zackria Sait Vice President (Technical Services)
Mr. A M Mankad Head (Car Plant)
Mr. S B
Head (Jamshedpur Plant)
Borwankar
Mr. S Krishnan Vice President (Commercial-PCBU)
Mr. H K Sethna Company Secretary
Showcase – Commercial Vehicles - Buses

SFC 407 Turbo Mini- bus LP 407 Turbo Mini- bus LP 709 E Turbo Bus

LPO 1510 CGS bus (CNG LP / LPO 1510 LP / LPO 1512 TC Turbo
bus) Bus

LP / LPO 1512 TC Turbo LPO 1610 TC RE Semi LPO 1616 TC Luxury

Bus Low Floor Bharat Stage - II Bus
Bharat Stage - II Bus

LP 1109 Bharat Stage II

Showcase - Defence
Tata 407 (4 x 4) Soft Top Troop Tata 407 / (4 x2) Hard Top Tata LPTA 713 TC (4 x4)
Carrier Troop Carrier

Tata LPT 709 E Hard Top Troop Tata SD 1015 TC (4 x4) Tata LPTA 1615 TC (4 x 4)
Carrier

Tata LPTA 1621 TC (6 x6) Tata LPTA 1615 TC (4 x2)

Showcase - ICV

LPT 1109 Turbo Truck LP 1109 Turbo Truck

Showcase – LCV1

TL 4x4 Tata SFC 410 EX Tata LPT 712 EX

 Tata 207 DI EX- Single Tata 207 DI - Single cab Tata 207 DI - Crew cab
cab

SFC 407 EX Turbo SFC 407 Turbo Truck LPT 709 E Turbo Container
truck

LPT 407 Turbo Truck SFC 709 E Aerial lift

turbo Truck

Showcase - Tractor Trailers

LPS 3015 TC 4x2 BS2 LPS 3516 TC 4x2 BS2 LPS 4018 TC 4x2 BS2

Showcase - Tippers

SK 1613 697 TCIC 4x2 SK 1613 TC 4x2 BS2 LPK 1613 697 TCIC 4x2
BS2 BS2

Showcase - Rigid Trucks

 SE 1613 697 TCIC 4x2 SE 1613 TC 4x2 BS2 LPT 1613 697 TCIC 4x2

LPT 1613 TC 4x2 BS2 LPO 1512 TC 4x2 BS2 LPT 2515 697 TCIC 6x2
Truck Chassis BS2

LPT 2515 TC 6x2 BS2 LPT 2518 6x2

Showcase - Applications

2516 TRANSIT MIXER 2515 BULKER LPT 2515/ LPT 2518 LOAD
BODY

3516 BULKER 4018 BULKER SEMI TRAILERS

Tata Ace Tata Novus

Tata Magic Tata Winger
Marketing Mix :

Marketing is the process by which a product or service originates and is then priced,
promoted, and distributed to consumers. The principal marketing functions involve market
research and product development, design, and testing. It is the business activity of
presenting products or services in such a way as to make them desirable.

One has to consider promotion that is balanced with a suitable product available at a
reasonable price, provided at all places to maximize the sale of one’s product.

MARKETING MIX
PRODUCT PRICE PROMOTION PLACE
Brand Pricing Strategy Personal Selling Channels of Distributions
Packaging Pricing & Quality Advertising Physical Distribution
Innovations Price & Alterations Public Relations Wholesaler & Retailers
Quality Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand : Advertising is often used to make consumers aware of a product’s
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.
2. PRICE (Pricing Strategy, Alterations, Discounts)

a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. As
told by Mr. Desai, prices have to be at par with the prices of the competitors.
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.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public

Relations)

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.

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
4. PLACE (Channels 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 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, Lucknow and 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.
SALES SERVICES :
A Consumer desires a no. of services before and after the purchase of the product. The
provision for these services assures the buyer of a good product and good service. The various
sales services provided by Tata Motors are as follows :

I) BEFORE SALES SERVICES

i. Test drive
ii. Providing information, demo, pamphlets, brochures etc. which helps the
customer to select an appropriate vehicle as per his need and requirement.
iii. To explain the legal formalities to be complied with.

II) AFTER SALES SERVICES

i. No. of free Services – 4
First Service - 1000-1500 km OR 1 month
Second Service - 10,000 km OR 12 months
Third Service - 20,000 km OR 24 months
Fourth Service - 30,000 km OR 36 months
ii. Warranty for vehicles – 18 months and unlimited kilometers.
iii. On road service : The Co. provides for On-road service in case of a breakdown.
The Co. has a nationwide toll-free number : 1800-225582, where the customer can
submit his query and the nearest dealer will approach to fix the problem.
iv. After Sales and Service follow-ups.
 PROBLEMS AND SUGGESTIONS

1. Despite good products, better service and competitive rates, the Co. has not succeeded
in retaining its market share. The Co. succeeded in capturing a good market share in
many of its product segments. However, it could not retain the market share with
introduction of new vehicles of competitors. Introduction of Toyota Qualis effected the
market share of Tata Sumo.
The Co. should make efforts to retain and expand its acquired market share.

2. The Co. has a good R & D and other resources. But it fails to give a variety in a
particular segment i.e. in SUV it has only Safari, in mid-size segment it has only Indica.
It should bring more models in its segments to give the customer a choice.

3. The Co. does not have an aggressive advertisement strategy. The competitors have
appointed brand ambassadors to capitalize on the market e.g. Amir Khan for Toyota
Innova, Shah Rukh Khan for Hyundai Santro and Saif Ali Khan for Chevrolet.
It can appoint a brand ambassador or take up an aggressive advertisement campaign
to influence the prospective customers.
4. The products have good features. However, the designs are not quite attractive. It can
learn from its competitor Maruti Suzuki which has succeeded in bringing innovative
designs with Swift, Zen Estilo and SX4.

FINDINGS AND CONCLUSIONS

The Co. manufactures good products and has prospective bright future. However, there is
scope for improvement in marketing of its products and product development. The
products of the Co. have good demand in the market due to which, the Co. enjoys good
turnover. But the Co. focuses mainly on the commercial vehicles and has not succeeded in
bringing innovations in its passenger vehicles. However, the Co. has a sound capital base
and latest R & D tools which gives it a potential to overcome the competition from
Mahindra, Maruti Suzuki and Hyundai in the near future.
 BIBLIOGRAPHY

www.tata.com
www.tatamotors.com
Microsoft Encarta Encyclopedia
Books Referred - Marketing Management by Philip Kotler