presentation on tata motors
TRANSCRIPT
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
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.
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.
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
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
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.
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 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)
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
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.