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CASE STUDY ANALYSIS ON

GROUP MEMBERS( GROUP 8)


(in the order of roll nos.)
• ROHAN GOEL (409)
• JIGNESH KAMANI (417)
• RASIKA LAD (427)
• DWIJ NAIN (435)
• PRAGNA PUJARA (443)
• ABHIJIT SANKHE (451)
• RACHNA SONEJI (459)
The Road Ahead……………
• Phase 1 – Entry into passenger vehicle
• Phase 2 – Launch of Indica
• Phase 3 – Launch of Indica V2
• Phase 4 – New Launches
• Phase 5 – Tata’s Ambitious Project
THE ROAD AHEAD……PAST
• Introduction and History of Tata motors
• PHASE 1
Entry of Tata Motors from
Commercial vehicles
To
Passenger vehicles segment
Automotive Industry
• 50’s -80’s closed market, dominant player
being Hindustan Motors Ltd. and Premier
Auto Ltd.
• In 1982- Maruti-Suzuki tie up
• In 1983- Maruti 800 was introduced
• From 83-93, Maruti 800 had monopoly
• With 92’s liberalization policy,50% FDI was
allowed.
Automotive Industry (Contd:)
• TELCO entered the passenger car market,
introducing three multi-utility vehicles,
"Tata Estate" and "Tata Sierra" in 1991-92
and "Tata Sumo" in 1995-96.
• Even after liberalization, Maruti was a
dominant player in smaller passenger car
segment.
Maruti’s dominance in market:
THE ROAD AHEAD……PAST

• PHASE 2
Entry into the compact Car segment
with Launch of India’s first
indigenously developed car
INDICA
INDIA

• India
Satellites into space, but no indigenous
car
• TELCO’s initiative
Basic Concepts of new Car
• Space
• Easy entry and exit
• Safety
• Economy of diesel
• Price
• Contemporary design

 TELCO’s low cost, $400 mn Vs.$2 bn


 Purchase of Nissan plant
PLAYERS IN THE COMPACT
SEGMENT
• Maruti Udyog Ltd.
Zen, WagonR
• Hyundai motors India Ltd.
Santro
• Daewoo Motors India Ltd.
Matiz
• Fiat India Automobiles Pvt. Ltd.
Uno
MARKET SHARE
Market shares till 1998

Uno
Matiz
6% Maruti
15%
Santro
Maruti Matiz
Santro 57%
22% Uno

Market shares after Indica launch, Dec.


'99

Indica
Maruti
18% Maruti
Uno Santro
36%
7% Matiz
Matiz
Uno
12% Santro
Indica
27%
THE ROAD AHEAD……PAST
• PHASE 3
Failure of Indica and Subsequent
launch and Success of Tata Indica V2.
INDICA:
India’s Car, India’s Pride
• A car exclusively for the middle class
Indian.
• A car designed for India rather than a
car adapted for India
• More car, per car
• Value for money
• Pre launch promotions and brand
building exercises
“We give you value for your money. Coming
up shortly, so wait for it…”
Sales….
• First Year – 55758 cars
• Cumulative sales for Indica were
growing by 37%
• Target Audience
– Middle class family man
– Young working Executive
• Loyalty Programme – Indica Club
Openness to Problem-Solving
• Tremendous hype because market
leader in other products
• Different set of customers with a
different set of requirements
• Problems – Uneven tire wear, belt noise
• Rectified the technical glitches
• Extended the warranty period
• Modifications at the production end
Openness to Problem-Solving
• Mid 2000 – More Complications
• Tackled – Improved version launched
• Version – Indica V2
Power &Technology
-Indica V2

• Buried the truck building mentality


• “Very soft” or “hard” suspension.
• Deluxe Goods give as standardised
features
• Marketing Jargon
Branding The V2
• Only announcements ads
• Highlight the improvements
• Feature Specific
• Titan watches
• Indica club
Branding The V2 ….contd
• Asha Bhosale and Daler Mehndi
• Newsletters
• Dealer panels and Customer meets
• Independent Customer Satisfaction
Surveys
• 390 problems per 100 vehicles to 273
problems per 100 vehicles
Changes in Business Policies
• Change in the top management
• Working Capital mgt
• Quality Initiatives for Clear and visible
results
Changes in Business Policies
• Gearing up with CRM
• Getting the right systems
• Customer’s Safety First
• Partnering Again
THE ROAD AHEAD……
PRESENT

PHASE 4
New Launches
Present Sales Figures– Tata
Motors
2005-06 2004-05 Growth

454345(tot inc 399566 13.7%


exports )
56406 (march – 44432 27%
cumulative)
6508 (exports) 3964 64.2%

22609 (PV -- 20000 13.1%


march)
Present Sales Figures–
Automotive Industry
•12 percent growth overall
•31.55 percent growth in
exports
New Launches—Tata Novus
New launches– Tata Safari DiCOR
New Launches – Tata Ace
CHANGES IN TATA OUTLOOK
• Focus on the youth
• Car changed to make it more zippy with
good mileage
• More focus on CRM
• Focus on women consumers
• International look and feel
THE ROAD AHEAD……
FUTURE
• PHASE 5
Tata’s 1 Lakh Car

• Ratan Tata’s Statement


"It is my dream to make the car a reality
within the five years I remain as Tata
chairman."
PORTER ANALYSIS
PORTER ANALYSIS
• New entrants : Bajaj ,TVS Motors
• Substitutes – quadricycles
• Competitors – Skoda, Maruti,
Hyundai,GM,Reva
• Distributors – New Distribution network
• Suppliers – Supply chain
PROPOSED MODEL
Car Features
• Car bigger than Maruti 800
• Engine lighter
• 5 seat, rear engine vehicle
• Positioned between two wheeler and
Maruti 800
• Targeting the two wheeler segment,
with a small pie from Maruti 800
Proposed Innovations
• Bolted or glued panels instead of
welded bodies
• Small satellite units instead of Dealers
Changes in Business Policy
• At present , adopt technology, develop
a product and then improve upon it
• 1 lakh car will be a System, in which
Tata will be a systems integrator. Tata
will develop the System and co –
manufacture the Product.
Changes in Business Policy…
• At Present, Tata manufactures a
product and the pricing is then set
accordingly
• Now, the price for the car as well as all
its components being fixed, the
manufacturing is then looked upon
Change in TATA Outlook
• Tie up with local manufacturers
• Rural training – rural employment
• Focus on two wheeler segment buyers
• Car design, technology outsourced
Plant Location to minimize costs
• Plant location – West Bengal
• Tata Steel and Tata Metaliks also in WB
• Plant Location – Jamshedpur
• Good auto components base, Tata HCV
and LCV manufacturing base present
• Plant location – Uttaranchal
• Site for hugely successful ACE, offers
significant excise relief
Competitor responses to the 1
lakh car
• Maruti – Mr. Khattar – not possible to
sell at the quoted price
• Maruti 800 sales rebound this March
• Flank 800 against 1 lakh car with price
cut+ cut in excise duty
• Hyundai– will compromise on safety,
emission norms etc
• Bajaj – we can make better car
Thank You
Any Questions ???
Any Questions ???