Tata Motors of India

Tata Motors of IndiaINTRODUCTION Established in 1945, Tata Motors presence indeed cuts across the distance and breadth of India. Over 4 unity million million million Tata vehicles ply on Indian roads, since the counterbalance rolled out in 1954. The confederacys manufacturing base in India is give out across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). The conjunction is establishing a crude plant at Sanand (Gujarat). Tata Motors, the first fellowship from Indias engineering sector to be listed in the New York storehouse Exchange (September 2004), has as well as emerged as an world(prenominal) automobile company. Tata Motors is also widening its external footprint, established through exports since 1961. The foundation of the companys growth over the last 50 social classs is a deep understanding of economic stimuli and guest necessarily, and the superpower to translate them into customer-desir ed offerings through leading edge RD. With over 2,000 engineers and scientists, the companys Engineering explore Centre, established in 1966, has en sufficientd pioneering technologies and crossroads. It was Tata Motors, which incured the first indigenously developed rickety Commercial Vehicle, Indias first Sports avail Vehicle and, in 1998, the Tata Indica, Indias first full indigenous rider car. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been face forward to.The years to come go away see the introduction of some(prenominal) other innovative vehicles, all rooted in emerging customer necessarily. Besides yield outgrowth, RD is also focussing on environment-friendly technologies in emissions and preference fuels.WHAT IS MARKETING?The all-embracing function that links the communication channel with customer needs and wants in order to get the right product to the right menage at the right time. IT is the managem ent process that identifies, anticipates and supplies customer requirements efficiently and profitably.WHAT IS MARKETING PLAN ?A plan is a means of achieving something. many a(prenominal) first-time business owners think that by simply placing an ad in a local newspaper or a commercial on a radio or a television station, customers will automatically mess to purchase their product or service. This is true to a certain extent. nigh people argon likely to learn roughly your invention and elbow grease it, just out of curiosity. But hundreds, even thousands, of other potential customers may never learn of your business. alliances aim is not just to attract and hang in a steady group of loyal customers, but also to expand customer base by identifying and attracting, new customers and to reduce risks by anticipating marketplace shifts that can affect companys bottom line. So, Proper selling plan is require and it should include market research, business location, the target c ustomer group, disceptation, the product or service being sold, budget, and advertising and promotion.PRODUCTS OVERVIEW OF TATA MOTORS Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation which has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, evolution, manufacturing, assembly and quality control, is carried out meticulously. It involves five categories of product manufacturing.Passenger carsUtility VehiclesTrucksCommercial Passenger CarriersDefence VehiclesIMPACT OF AUTOMOBILE INDUSTRIES IN INDIA A well developed transportation agreement scarpers a key component in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an in-chief(postnominal) place on the canvas of Indian economy. Today it is fully equal to (p) of producing various kinds of vehicles and can be divided into 3 broad categories Cars, two-wheelers and sinister vehicles. India is the 11th largest Passenger Cars producing countries in the world and 4th largest in dense Trucks.NEW PRODUCT TO BE LAUNCHED IN THE CATEGORY OF PASSENGER automobile ECHO FRIENDLY ELECTRIC CAR As of 2002, there were 590 million passenger cars worldwide (roughly one car per eleven people).Around the world, there were about 806 million cars and light trucks on the road in 2007 they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increase rapidly, especially inChinaandIndia. Most automobiles in use today are propelled bygasolineordieselinternal burn engines, which are known to cause pains befoulmentand are also blamed for contributing toclimate changeand planetary warming.Increasing be of oil-based fuels, tightening environmental lawsand restrictions ongreenhouse gasemissions are propelling work on alternative p ower systems for automobiles. Efforts to improve or replace existing technologies include the development of hybrid vehicles, and electric and hydrogen vehicleswhich do not release pollution into the air. Tata Motor is looking forward in this direction.CURRENT MARKET point AND COMPETITION The company reported a 12.7% rise in salary revenue to just over 1 billion in a three-month period ended on September 30 and half way into the financial year 2009 its profit before tax was up by 33% at 194 million on revenue 2.7% ahead at 1.89 billion.Passenger Vehicle(PV) industry gross revenue volume, including exports, crossed the 1mn mark. The PV market is highly hawkish with 13 players in operation, out of which 9 are global major league and compete in the market with over 55 models across 9 segments. 80% of the market is for vehicles below Rs 0.5mn.Tata Motors ranks as the second largest car manufacturer behind Maruti Udyog. The primary competitors of Tata Motors are Ashok Leyland in the commercial heavy vehicle segment and Maruti Udyog and Hyundai are in the passenger car segment.Volvo has been increasing its enthronement in the automotive sector in India and so have a wide range of other international companies from Europe and America.DISTRIBUTION intercommunicate Tata Motors dealership, sales, services and spare parts network comprises over 3500 touch points Tata Motors also distributes and markets Fiat branded cars in India.The 28Tata-Fiatdealers, who together have 44 outlets, are located in 11 cities.SWOT ANALYSIS STRENGTHS The internationalization dodging to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise.The company has a st governgy in place for the next stage of its expansion. It is direction upon new products and acquisitions, also has a programme of intensive management development to establish its leaders for tomorr ow.The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for both companies.WEAKNESSES The companys passenger car products are based upon 3rd and 4th generation platforms, which amaze Tata Motors Limited at a disadvantage with competing car manufacturers.Tata has not got a foothold in the luxuriousness car segment in its domestic help market. Is the brand associated with commercial vehicles and inexpensive passenger cars to the extent that it has isolated itself from moneymaking(a) segments in a more(prenominal) aspiring India?OPPORTUNITIES In 2008 it had added the Land rover and catamount, two of the Worlds luxury car brands to its portfolio by purchasing it from Ford Motors for UK. And will undoubtedly off the company the chance to market vehicles in the luxury segments.Tata Motors Limited acquired Daewoo Motors Commercial vehicle business in 2004 for around USD $16 million.Nano is the cheapest car in t he World retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in scathe of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard NanoThe new global track platform is about to be launched from its Korean plant, at a time when the World is looking for environmentally friendly transport alternatives. New and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles.THREATS Other competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore company has to catch up in terms of quality and lean production.Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments.Rising prices in the global economy could po se a threat to the company.COMPANYS GOALSThe companys goal is to strengthen its leading position in the Indian market, maintain operational excellence, and expand its international business in selected countries through organic as well as inorganic growth initiatives.COMPANYS OBJECTIVESMARKETING Introduce new product with high technology features and as per market environmental conditions.Achieve an annual growth rate of at least 15% and market share up to 35-40%. kick upstairs the new product through strategic alliances with advertisement and by organizing promotional events.FINANCIAL Generate sales of approximately Rs 100 crore in year one and increase sales 10% annually.Capture and maintain a gross margin of 20-25%.Achieve positive net worth by next 2-3 years.TARGET MARKET SEGMENT Tata Motors will target side by side(p) two market segments 1. Middle class Family This is the group of customers who dreams to buy product which is market competitive and inexpensive.2. Youngsters T his is the group of customer who believes in being with new(a) trends and technology.MARKETING STRATEGY Tata Motors believes in technology for tomorrow. By looking at the Marketing strategies of TATA motors, the SWOT analysis can clearly tells why Tata Motors marketing strategies is one of the successful stories in automobile industry nowadays. Tata Motors Company is able to produce more than 4 million different types of vehicles, since the company began in 1945.The 4 Ps The Marketing Mix(MM) model (also known as the 4 Ps) can be used by marketers as a asshole to assist in implementing the Marketing strategy. The function of the MM is to help develop a package that will not only satisfy the needs of the customer within the target markets, but simultaneously to maximize the action of the organization.ProductPricePlacePromotionPRODUCT Every business started from 0, from no one knows it until eachone know it. Advertising is one of the most familiar ways to rush car buyer or car drumbeater aware of the new car with special promotion price. In future tense an Electric Car will be in high submit by the point of view of rising Gasoline rate and air pollution worldwide.PRICE There are various factors to determine a price of a car, such as market condition, cost incurred to number a car, profit by company, dealer profit. Giving discount every month and special promotion for certain type of vehicle is one of the strong strategy used by Tata Motors. So, company will make every effort to maintain a competitive pricing constitution with approximate 10-12% profit marginPLACE Place of dealership does play an important role. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership. Company has the biggest market of Indian creati on . It has also tie-up with another foreign automobile companies to export the products internationally. advance During the first year of operation company will present new product in industrial events like Auto Expo, and will esteem advertising campaign through the media like Television, Radio, Posters etc. After open the product it will provide test-drive at show rooms and butt in high-tech features of the new product to the customers.