4PS OF TATA MOTORS

RITESH KUMAR ARJUN MM7013

AUTOMOBILES INDUSTRY IN INDIA

The AUTOMOBILE INDUSTRY in India is one of the largest market in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 5 million units in 2012.

According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand.
In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars.

INTRODUCTION TO TATA MOTORS

Established in 1945, Tata Motors presence cuts across the length and breadth of India. Over 6.5 million Tata vehicles play on Indian roads, since the first rolled out in 1954. The companys manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. Tata Motors Limited is Indias largest automobile company, with consolidated revenues of INR 1,65,654 crores (USD 32.5 billion) in 2012-13. 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. It is also the world's fourth largest truck and bus manufacturer

 The foundation of the companys growth over the last 66 years 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. With over 4,500 engineers, scientists and technicians the companys Engineering Research Centre, established in 1966, has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indias first indigenously developed mini-truck. In 2009, the company launched its global benchmarked Prima range of trucks and in 2012 the Ultra range of international standard light commercial vehicles.

CONTD
Tata Motors also introduced Indias first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica, Indias first fully indigenous passenger car. In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano. The Tata Nano has been subsequently launched, as planned, in India in March 2009, and subsequently in 2011 in Nepal and Sri Lanka.

4PS AND 4CS

Product -Customers problem solution

Price -Customers cast

Place -Customers convenience Promotion -Customers communication

4 PS OF TATA MOTORS
PRODUCTS OF TATA MOTORS
Passenger cars and Utility Vehicles Concept Vehicles Commercial Vehicles

Military Vehicles

PLACE
Tata sells cars through 280 dealerships in 189 cities across India.

PROMOTIONAL ACTIVITY OF TATA MOTORS

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. Tata Motors concern is manifested by a dual approach 1. Reduction of environmental pollution and regular pollution control drives 2. Restoration of ecological balance.

PRICING STRATEGY OF TATA MOTORS

Product Range :

Tata (Sedan): Popular Tata sedan car prices start with Tata cars at a bit below rupees four lakhs to Tata cars at a bit above rupees eight lakhs.
Tata sedan cars include - Tata Indigo (Sedan),Tata Indica etc. Tata (SUV):Popular Tata SUV car prices begin with Tata SUVs at a bit above rupees four lakhs fifty thousand to Tata SUVs at a bit below rupees ten lakhs. Tata SUV models include.Tata Sumo, Tata Safari etc. Tata (Comercial Vehicle): ranges from 18lakhs to 35 lakhs.

MARKETING STRATEGY OF TATA MOTORS

SALES VOLUME OF TATA MOTORS IN INDIA

Tata Motors March (2012-2013)sales at 100,414 nos.

Highest ever sales for the Commercial Vehicles Business in a year. Highest ever sales for the Passenger Vehicles Business in a year. The company's monthly sales crossed 100,000 - mark for the first time. Commercial Vehicles The company's sales of commercial vehicles in March 2012 in the domestic market were 58,063 nos., highest ever in a month and a 17% growth compared to 49,753 vehicles sold in March last year. LCV sales were 36,091 nos., a growth of 37% over March last year. M&HCV sales stood at 21,972 nos., lower by 6%, over March last year.

CONTD.

Passenger Vehicles
The passenger vehicles business reported a total sale and distribution offtake of 38,399 nos.(36,984 Tata + 1,415 Fiat) in the domestic market in March 2012, higher by 30%, compared to 29,520 nos. (27,678 Tata + 1,842 Fiat) in March last year. Sales of Tata passenger vehicles for March 2012 are at 36,984 nos., highest ever in a month and a growth of 34%, over 27,678 vehicles sold in March 2011. Sales of the Tata Nano are 10,475 nos., highest ever in a month and higher by 20% over 8,707 nos., in March 2012.

COMPITITORS OF TATA MOTORS

HYUNDAI
The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-YungChung established Hyundai Auto Service in Seoul, South Korea at the age of 31 years. The name Hyundai was chosen for its meaning which in English translates to modern. The Hyundai logo is symbolic of the company's desire to expand. The oval shape represents the company's global expansion and the stylized "H" is symbolic of two people (the company and customer) shaking hands. In 1968 the company entered into a contract with Ford motor company to assemble the Ford Cortina and Granada for the South Korean market and continued to produce them until 1976. Hyundai completed construction of the Ulsan plant in six months and achieved the shortest groundbreaking to first commercial production of any of Fords 118 plants .

 MARUTI SUZUKI
MarutiUdyog Limited's (MUL) share of the Indian passenger vehicle market dropped to below 50% in 2004-05 (Refer to Exhibit I for the performance of the Indian passenger vehicle industry and MUL between April 2003 and March 2005). The future of MUL's lowcost model - the Maruti 800 (M-800) - was at stake due to the entry of global automakers into India. M-800 had dominated the Indian car market since it was launched in 1984. The introductionof new cars by competitors made the M-800 look obsolete as it had not been changed in any major way for over two decades. Apart from the increased competition, MUL also had a fewother problems on its plate.

 MAHINDRA & MAHINDRA

It was in early 2004 that Anand Mahindra (Anand), vice chairman and managing director Mahindra & Mahindra (M&M), heard Kenneth Ramsay (owner of Angus Valley Farm Supply in the town of Elm Mott in Texas USA - population 200), rave about his Mahindra tractor - the brand he and his townsfolk preferred to well known US tractor brands like John Deere and New Holland. Anand realized that M&M had a real opportunity to become a 'truly global' brand. M&M's globalization plans had to be seen in the context of the several restructuring exercises undertaken by the company in the past few years, which had substantially increased the company's profitability and productivity. This was in line with Anand's philosophy on globalization.

HONDA MOTORS

Honda Motor Co is revving up its India strategy in both the cars and two-wheeler segments.For starters, Honda Siel Cars will launch a luxury sports utility vehicle CR-V on May 9 to be followed up by new versions of City and Accord car models.
TAYOTA

Toyota Motor Corporation was Japans largest car company and the worlds third largest by the year 2000. The company was producing almost five million units annually in the late1990s and controlled 9.8 percent of the global market for automobiles. Although its profitsdeclined substantially during the global economic downturn of the early 1990s, Toyota responded by cutting costs and moving production to overseas markets. The companyrepresented one of the true success stories in the history of manufacturing, its growth and success reflective of Japans astonishing resurgence following World War II.In 1930:The Emergence of Japanese Automobile Manufacturing in the 1930s and 1940s.In 1933 a Japanese man named Kiichiro Toyoda traveled to the United States, where he visited a number of automobile production plants.

SWOT ANALYSIS OF TATA MOTORS

STRENGTHS

TATA motors is market leader in Automobile Industry with high market share.
TATA Motors Company have huge employee base. TATA motors employee productivity percentage is higher. TATA motors produce low price car with low fuel consumption. TATA motors is the reputable brand in Indian Industry.

 Weakness
Return on Investment on TATA motors shares in low. TATA motors is not able to meet safety standards in their vehicles. The domestic sales of the company are not up to the mark.

Tata has not got a foothold in the luxury car segment in its domestic market .

Opportunities
TATA motors can take the advantage of their low cost car by entering into third worldcountries where people have low purchasing power. TATA motors should focus in developing luxury cards. TATA motors can introduce more safety features in vehicles to gain more customer satisfaction. Joint ventures in other countries allow TATA motors to easily enter into new market.

 Threats
I. II. TATA motors have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will no competitive advantage. The major challenge for TATA motors is the rising prices of steel, Aluminum and plastic which is heavily used in vehicle manufacturing.

FINDINGS: Examines the production, sales, and export growth rates of the sector, along with a mention of the major manufacturers. Identification of the opportunities for foreign companies in terms of exports, technology transfers, strategic alliances, financial collaborations and JV's, in the Indian vehicle sector. The component-wise share of production is assessed. Assessment of the implications of vehicle emissions

Demand forecasts till 2011.

Major changes occurring in the Indian market A study of the market access strategies for companies An insight into the profiles of big players of the Indian automotive sector

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