INTRODUCTION

CHAPTER 1- INTRODUCTION

Ratan Naval Tata (born December 28, 1937, in Bombay, Bombay Presidency,

British India) is the present Chairman of Tata Sons and therefore, Tata Group[1],

India's largest conglomerate founded by Jamsedji Tata and consolidated and expanded

by later generations of his family. 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.

Early life

Ratan Tata was born into the famous Tata family, a prominent family belonging to

Mumbai's wealthy Parsi community. He was born to Soonoo and Naval Hormusji

Tata. Ratan is the great grandson of Tata group founder Jamsedji Tata. His childhood

was troubled, with his parents separating in the mid-1940s when he was merely seven

and his younger brother Jimmy was five years old. Their mother moved out and both

Ratan and his brother were raised by their grandmother Lady Navajbai.

Early career

Ratan Tata completed his BSc degree in architecture with structural engineering from

Cornell University in 1962, and the Advanced Management Program from Harvard

Business School in 1975.[2] He joined the Tata Group in December 1962, after turning

down a job with IBM on the advice of JRD Tata. He was first sent to Jamshedpur to

work at Tata Steel. He worked on the floor along with other blue-collar employees,

shoveling limestone and handling the blast furnaces.[3] Ratan Tata, a shy man, rarely

features in the society glossies, has lived for years in a book-crammed, dog-filled

bachelor flat in Mumbai's Colaba district and is considered to be a gentleman

extraordinaire.[4][5]

Career

In 1971, Ratan was appointed the Director-in-Charge of The National Radio &

Electronics Company Limited (Nelco), a company that was in dire financial difficulty.

Ratan suggested that the company invest in developing high-technology products,

rather than in consumer electronics. J.R.D. was reluctant due to the historical financial

performance of Nelco which had never even paid regular dividends. Further, Nelco

had 2% market share in the consumer electronics market and a loss margin of 40% of

sales when Ratan took over. Nonetheless, J. R. D. followed Ratan's suggestions.

From 1972 to 1975, Nelco eventually grew to have a market share of 20%, and

recovered its losses. In 1975 however, India's Prime Minister Indira Gandhi declared

a state of emergency, which led to an economic recession. This was followed by

union problems in 1977, so even after demand improved, production did not keep up.

Finally, the Tatas confronted the unions and, following a strike, a lockout was

imposed for seven months. Ratan continued to believe in the fundamental soundness

of Nelco, but the venture did not survive.

In 1977, Ratan was entrusted with Empress Mills, a textile mill controlled by the

Tatas. When he took charge of the company, it was one of the few sick units in the

Tata group. Ratan managed to turn it around and even declared a dividend. However,

competition from less labour-intensive enterprises had made a number of companies

unviable, including those like the Empress which had large labour contingents and

had spent too little on modernisation. On Ratan's insistence, some investment was

made, but it did not suffice. As the market for coarse and medium cotton cloth (which

was all that the Empress produced) turned adverse, the Empress began to accumulate

heavier losses. Bombay House, the Tata headquarters, was unwilling to divert funds

from other group companies into an undertaking which would need to be nursed for a

long time. So, some Tata directors, chiefly Nani Palkhivala, took the line that the

Tatas should liquidate the mill, which was finally closed down in 1986. Ratan was

severely disappointed with the decision, and in a later interview with the Hindustan

Times would claim that the Empress had needed just Rs 50 lakhs to turn it around.

In 1981, Ratan was named director of Tata Industries, the Group's other holding

company, where he became responsible for transforming it into the Group's strategy

think-tank and a promoter of new ventures in high-technology businesses.

In 1991, he took over as group chairman from J.R.D. Tata, pushing out the old guard

and ushering in younger managers. Since then, he has been instrumental in reshaping

the fortunes of the Tata Group, which today has the largest market capitalization of

any business house on the Indian Stock Market.

Under Ratan's guidance, Tata Consultancy Services went public and Tata Motors was

listed on the New York Stock Exchange. In 1998, Tata Motors introduced his

brainchild, the Tata Indica.

On January 31, 2007, under the chairmanship of Ratan Tata, Tata Sons successfully

acquired Corus Group, an Anglo-Dutch steel and aluminium producer. With the

acquisition, Ratan Tata became a celebrated personality in Indian corporate business

culture. The merger created the fifth largest steel producing entity in the world.

On March 26, 2008, Tata Motors, under Ratan Tata, bought Jaguar & Land Rover

from Ford Motor Company. The two iconic British brands, Jaguar and Land Rover,

were acquired for £1.15 billion ($2.3 billion).

Tata Nano car, 2008

Ratan Tata's dream was to manufacture a car costing Rs 100,000 (1998: approx.

US$2,200; today US$2,000 US$2,528). He realized his dream by launching the car in

New Delhi Auto Expo on January 10, 2008. Three models of the Tata Nano were

announced, and Ratan Tata delivered on his commitment to developing a car costing

only 1 lakh rupees, adding that "a promise is a promise," referring to his earlier

promise to deliver this car at the said cost. However, the price of the car has since

been raised. Recently when his plant for Nano production in Singur, West Bengal,

was obstructed by Mamta Banerjee, his decision of going out of the state was warmly

welcomed by the Indian corporate media and the English-speaking middle class.

Banerjee criticised Ratan Tata for forcing people out of their land in collusion with

the Left Front government in the state, which is headed by Budhadeb Bhattacharjee.

On October 7, 2008, after a controversial stay in West Bengal, Ratan Tata and his

team shifted their Rs 1-lakh car Nano project to Sanand near Ahmedabad at an

investment of Rs 2,000 crore (Rs 20 billion), declaring that efforts will be made to roll

out the world's cheapest car from a make-shift plant to meet the deadline. The Gujarat

chief minister Narendra Modi granted him huge subsidy for building the facility,

including free land. Praising Modi for speedy allocation of about 1,100 acres (4.5

km2) of centrally located land, Ratan Tata said that the company had a great deal of

urgency in having a new location and was driven by the reputation of the state.

The car was launched on March 23, 2009, amid much fanfare with advance bookings

that preceded its launch by months.

Personal life

Mr. Ratan Tata«Total Association Total Association» has a metallic blue Maserati

and Ferrari California but prefers to drive himself in an old model Mercedes sedan

much like JRD who seldom used a chauffeur and drove his own Fiat to and from

work.[6] He sometimes likes to fly his private jet himself. He has an outdated Falcon

Jet, which is no longer used for commercial aviation.[7] He has never been married.[8]

He likes to wear Hermès ties and matching handkerchiefs. [1]

Ratan Tata is largely an employee Chairman / CEO of the group and most his own

holding in Tata Sons., the holding company of the group, is a result of inherited

family shareholding. His share is or a little less than 1%, valuing his personal holding

at approximately US$ 1 Billion, if encashed.[citation needed] About 66% of the equity

capital of Tata Sons is held by philanthropic trusts endowed by members of the

original Jameshedji family and the largest share is with the Shapoorji Pallonji Mistry

family aligned originally to Jamshetji's brother in law. The biggest two of the owning

trusts are the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust (different Ratan

Tata), which were created by the families of the sons of Jamshedji Tata. Ratan Tata is

on the board of trustees of the Sir Ratan Tata Trust, and is the chairman of the board

of trustees of the Sir Dorabji Tata Trust.[original research?] Ratan Tata is also best known for

the face behind changing India's automotive industry into global climate change era.

Quotes

"Question the unquestionable"

"A promise is a promise"

AWARDS AND RECOGNITION

Ratan Tata serves in senior capacities in various organisations in India and he is a

member of the Prime Minister's Council on Trade and Industry. Tata is on the board

of governors of the East-West Center, the advisory board of RAND's Center for Asia

Pacific Policy and serves on the programme board of the Bill & Melinda Gates

Foundation's India AIDS initiative.[10]

Ratan Tata's foreign affiliations include membership of the international advisory

boards of the Mitsubishi Corporation, the American International Group, JP Morgan

Chase and Booz Allen Hamilton. He is also a member of the board of trustees of the

RAND Corporation, University of Southern California and of his alma mater, Cornell

University.[11][12] He also serves as a board member on the Republic of South Africa's

International Investment Council and is an Asia-Pacific advisory committee member

for the New York Stock Exchange.

On the occasion of India's 50th Republic Day on 26 January 2000, Ratan Tata

was honoured with the Padma Bhushan, the third highest decoration that may

be awarded to a civilian.[10]

In February 2004, Ratan Tata was conferred the title of honorary economic

advisor to Hangzhou city in the Zhejiang province of China.[13]

On August 30, 2005, it was announced that Ratan Tata was elected to the

Board of Trustees of the University of Southern California, Los Angeles, one

of the leading research universities in the United States.

In 2006 he received the FIRST Award for Responsible Capitalism.[14]

In March 2006 Tata was honoured by Cornell University as the 26th Robert S.

Hatfield Fellow in Economic Education, considered the highest honor the

university awards to distinguished individuals from the corporate sector.[15]

He was one of the recipients of the NASSCOM Global Leadership Awards

2008, given at a ceremony on February 14, 2008 in Mumbai. Ratan Tata

accepted the Carnegie Medal of Philanthropy in 2007 on behalf of the Tata

family.[16][17]

He was listed among the 25 most powerful people in business named by

Fortune magazine in November 2007.

In May 2008 Mr Tata made it to the Time magazine's 2008 list of the World's

100 most influential people. Tata was hailed for unveiling his tiny Rs. one

lakh car 'Nano'.[18]

On 26 January 2008, he was awarded the Padma Vibhushan, the second

highest civilian decoration.[10]

On 29 August 2008, the Government of Singapore conferred honorary

citizenship on Ratan Tata, in recognition of his abiding business relationship

with the island nation and his contribution to the growth of high-tech sectors

in Singapore. Ratan Tata is the first Indian to receive this honour.[19]

In 2009 he was appointed an honorary Knight Commander of the British

Empire[20].

He has also been conferred an honorary doctorate in business administration

by the Ohio State University, an honorary doctorate in technology by the

Asian Institute of Technology, Bangkok, an honorary doctorate in science by

the University of Warwick, and an honorary fellowship by the London School

of Economics.[10] He has recently received an honorary Doctor of Law from

the University of Cambridge.[21]

In 2010, Ratan Tata was named one of the '50 People Who Matter 2010'[22] by

New Statesman Magazine

The automotive industry is an extremely reliable indicator of economic growth;

quite obviously, its growth boosts the economy’s performance. As India

celebrates its 50 years of independence, the passenger car industry

celebrated a centenary of its existence in India in 1998. Despite this head

start, the industry has never quite matched up to the performance of its

counterparts in other parts of the world. The all-pervasive atmosphere

created by the government's license raj was primarily responsible for this

situation. The various layers of Acts sheltered the industry from external

competition and smothered the development of the Indian automobile

industry. Moreover, the industry was considered low priority as cars were

considered to be an "unaffordable luxury."

Hence in the first part of the project I have taken up the strategic group analysis of

TELCO as this is one company whose indigenously manufactured cars like

Tatamobile, Indica and Safari have performed well on Indian Roads. In the second part

of the project I conducted a study on the consumer perception about small cars. Firstly,

I took three brands of small cars; Zen, Indica and Santro for a comparative study of

small car segment.

Later I went through the process of filling the questionnaires, to know

exactly what the customer’s of small cars perceived about their cars. A

sample size of sixty respondents was taken. Sample unit was a customer who

owned a small car. Secondary data from various sources like magazines,

journals etc was also collected.

The findings showed that the consumer’s who owned small cars basically

wanted good performance, after sales service and a car at their budget, a less

expensive one.

All the cars taken for the sample showed that the consumers perceived them

as almost same in all the attributes like safety, comfort and luxury.

Respondents liked Indica more for its looks, whereas Maruti’s after sales

service was perceived to be good.

But, at the end the research was limited due to small sample size, small

sample area and time constraints.

INDUSTRY PROFILE

With the liberalization of the Indian economy, the passenger car industry

was finally deregulated in 1993 and many companies, both Indian and

foreign, announced their plans to enter the market. The last four years have

seen companies like Daewoo, Ford, GM, and Mercedes-Benz launches their

cars in India. The passenger car industry notched impressive growth rates

between 26-30% during the period FY 94-96 even though the economic

slowdown has adversely affected the industry in FY 98 with the growth rate

tricking down to 1%. Nonetheless, times have changed significantly - the

days of the customer chasing the dealer to purchase poor quality cars backed

by inefficient service are history. Today, the customer dictates the terms.

The future of Indian cars is purely dependent on advancements and innovations.Just

go back to the olden days when the old Fiat Padmini and Hindustan Ambassador were

shinning on Indian roads. At that period of time, did anyone of us thought that the car

market will prosper to such a height? No one of us ever imagined such a speedy and

accelerated growth of the Indian market.

Since that old Fiat and Amby were introduced, the Indian car industry

has travelled a long and bumpy road. Fortunately, today the industry shines at the top

with a good number of cars running on roads. It also plays a key role in the industrial

and economic development of the country.

Today, the Indian industry is flying with the wings of technology,

advancement and innovation. The first car manufactured as a result of technological

advancement is Maruti Suzuki 800 in 1983, a car that revitalized the

Indian automobile sector. This car was a productive result of a joint venture between

Government of India and Suzuki Motors of Japan. Thereafter, many

car manufacturers across the world entered the Indian car market.

Some of the biggest car manufacturers who have set up their manufacturing facilities

in India are Tata, Toyota, BMW, Audi, Ford, Skoda, Volkswagen, Mitsubishi, Suzuki,

Honda, Hyundai, Maruti, Mercedes, Chevrolet Fiat, Mahindra, and Volvo. These

manufactures are currently producing the world’s best car models, progressively

booming the India’s economic growth. Some of these companies are also importing

cars and other car accessories to meet the increasing demand of car market in India.

The reason why many foreign manufactures entered the Indian markets

is availability of highly skilled engineers, low cost labor, technical know how, less

investment, cheap machinery and raw materials, established quality systems and

rewarding returns. Even the cost of production is reduced to about 25-30% as

compared to overseas production. This pace of advancement and improved production

not only paved way for foreign manufacturers but also provided enhanced ability to

Indian car manufacturers for producing better models.

With the increasing number of cars running on the Indian roads, the

future of Indian car industry is also running with a very high velocity.

One of the leading car manufacturing companies, Ford, is planning to make India a

regional hub for exporting small cars and engines. At the other edge, Skoda is

planning to source some of the European operations from its Indian facility. It is

believed that this operation will increase indigenization level for all the

Indian cars to almost 70%, providing Indian cars a competitive edge in the global

market.

Many car manufacturers are rolling out new cars and many are in

pipeline. Today, the car market is congested with world class cars like the

Volkswagen Jetta, BMW 7 series, Maruti Suzuki SX4, Ford Fiesta, and Honda Civic.

Tata Motors is all set to roll out the world’s cheapest car, Hyundai Motors waiting to

announce the launch of Hyundai i20, and Maruti Suzuki awaiting the launch of the

global car, Maruti Suzuki A-Star. Likewise, many other car

manufacturers including Volvo, Volkswagen, Mercedes-Benz, BMW, Honda Seil,

Rolls Royce Phantom, and even Skoda has a slew of launches in their pipeline for

the Indian car industry.

Apart from new cars rolling every day on Indian roads, there are many new features

added to the cars. Cars are also becoming automated with the use of automatic

transmission system. Some of the high-end technological dazzlers are loaded with

advanced and top-notch technical features. Along with, the entry of alternative fuel

options is also expected to hit the Indian car industry.

India will also have cars powered with air and water in future.

So, the future is definite and India is soon to hit the world’s car market and become

the third largest car industry after US and China. All the domestic and

foreign car manufacturers are making various advancements in the car

models with respect to design, technology, fuel efficiency, colors, innovation, style,

performance, luxuries and price. These advancements are constantly flourishing

the Indian car market, a market that has transformed from a small ray

to a competitive sunrise industry.

 

COMPANY PROFILE

TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the TATA

Group, the oldest and among the largest industrial conglomerates of India. Tata

motors one of India's largest private sector companies  with a turnover of over Rs.80

billion, is the country's leading commercial vehicle manufacturer and has significant

presence in the multi-utility and passenger car segments.

Tata motors was established on September 1, 1945, originally for the manufacture of

Steam Locomotives at Jamshedpur. By 1954, the company had diversified into the

manufacture of commercial vehicles in collaboration with Daimler Benz, Germany.

By the time their collaboration ended in 1969, Tata motors had become an

independent producer of Medium Commercial Vehicles with a great degree of

indigenization. It had also developed the capability of designing, testing and

manufacturing such vehicles.

The widely successful Tata Indica, a Euro 2 compliant vehicle, is the country’s first

indigenously designed, developed and manufactured passenger car. Tata Motors

followed that up with the Tata Indigo, a sedan that was launched in December 2002.

The company also makes several other passengers vehicles, including the Safari,

Sumo and Sierra.

The company’s products have received wide acceptance not only in India but also in

the Middle East, Asia, Africa, Australia, Latin America and Europe.

Areas of business

The company manufactures medium, heavy and light commercial vehicles, multi-

utility vehicles and passenger cars. In the year ending March 2001, the company’s

revenues from its four manufacturing plants at three locations in India were Rs. 81.64

billion (US $ 1.73 billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion)

{The average exchange rate has been taken as Rs 47.0 to one US dollar.}

In the year ended 31 March 2001, the company’s total exports were worth about Rs

7.22 billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million)

in the previous year.

Locations

The company’s manufacturing plants in India are at Jamshedpur, Pimpri and

Chinchwad near Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been

acquired at Dharwad (Karnataka) to build a fifth plant.

Collaborations

The company has technical tie-ups with:

The Institute of Development in Automotive Engineering (IDEA), S.P.A.,

Italy, for assistance in small car body design and styling; and

Le Moteur Moderne, France, for the development of diesel and petrol engines

for passenger cars.

Subsidiaries

Tata Construction Equipment Company Ltd. (TELCON): Its principal

business is manufacture and sale of construction, material handling and

earthmoving equipment.

Tata Technologies Ltd.: It oversees the IT requirements of Tata Motors and

provides services for SAP implementation, CAD/CAM-based design, and e-

commerce facilities to customers in India and abroad.

Sheba Properties Ltd: It is an investment and finance company and a wholly-

owned subsidiary of Tata Motors since its inception. It is registered with RBI

as a Non Banking Finance company.

Telco Dadajee Dhakjee Ltd. (TDDL): It is an investment and finance

company and proposes to undertake activities pertaining to the sales and

service of Tata Motors’s vehicles and spare parts.

Minicar (India) Ltd.: Formerly known as Mazda Industrial Chemicals Ltd.,

this company was incorporated on January 18, 1972 and is currently engaged

in the business of automobile sales and services.

HV Transmissions Ltd.: It was incorporated on March 13, 2000 with the

objective of acquiring the Heavy-Duty Gear Box Division of Tata Motors at

Jamshedpur as a going concern. It supplies transmissions and their parts to

Tata Motors against purchase orders raised by Tata Motors on HVTL.

HV Axles Ltd.: It was incorporated on March 13, 2000 with the objective of

acquiring the Heavy-Duty Axle Division of Tata Motors at Jamshedpur as a

going concern. It supplies axles and their parts to Tata Motors against

purchase orders raised by Tata Motors on HVAL.

Telco Automation Ltd.: It was incorporated on March 13, 2000 with the

objective of acquiring the Machine Tool and Growth Divisions of Tata Motors

as a going concern. As and when required, Tata Motors sources factory

automation equipment from TAL.

Tata Technologies, USA: It was incorporated on August22, 1994 and became

a wholly owned subsidiary of Tata Technologies Limited on December 22,

2000. The company is engaged in the business of computer consultancy and

related services.

Strategic alliances

Tata Motors has several joint ventures and alliances. These include:

Tata Cummins Ltd., a joint-venture with Cummins Engine Company Inc.,

USA; makes fuel-efficient, low emission, environment-friendly diesel engines;

Tata Holset Ltd., a joint-venture with Holset Engineering Company, UK,

makes turbochargers for diesel engines manufactured by Tata Cummins Ltd.

and other OEMs;

Concorde Motors Ltd., a joint venture with Jardine International Motors

(Mauritius) for dealerships of passenger vehicles. Concorde has dealerships

for Tata Motors passenger vehicles in Delhi, Mumbai, Bangalore, Ludhiana,

Hyderabad, Chennai and Lucknow.

Tata Precision Industries Pvt. Ltd., Singapore, for the manufacture and sale

of high precision too lings as well as electronic and plastic components for the

computer industry;

Tata Motors Services Ltd., Singapore, for the sale of spare parts for Tata

vehicles; and

Nita Company Ltd., Bangladesh, for the assembly and sale of Tata

commercial vehicles.

VISION AND MISSION

Vision To be the leading provider of Tata Motors services in India and a major global

companies.

Mission Be the Tata Motors of first choice for our customers by delivering high

quality, world-class products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of India’s potential.

Maintain a healthy financial profile and diversify our earnings across

businesses and geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we

operate.

Create value for our stakeholders.

BOARD OF DIRECTORS

NAME DESIGNATION

Ratan N Tata Chairman / Chair Person

Carl-Peter Forster Managing Director & CEO

J J Irani Director

N N Wadia Director

R A Mashelkar Director

N Munjee Director

Ranendra Sen Independent Director

Ravi Kant Vice Chairman

P M Telang Managing Director

R Gopalakrishnan Director

S M Palia Director

S Bhargava Director

V K Jairath Director

Tata Daewoo Commercial VehicleMain article: Tata Daewoo Commercial Vehicle

With the success of Tata Indica, Tata Motors aimed to increase its presence

worldwide. In 2004, it acquired the Daewoo Commercial Vehicle Company of South

Korea. The reasons behind the acquisition were:

Company's global plans to reduce domestic exposure. The domestic

commercial vehicle market is highly cyclical in nature and prone to

fluctuations in the domestic economy. Tata Motors has a high domestic

exposure of ~94% in the MHCV segment and ~84% in the light commercial

vehicle (LCV) segment. Since the domestic commercial vehicle sales of the

company are at the mercy of the structural economic factors, it is increasingly

looking at the international markets. The company plans to diversify into

various markets across the world in both MHCV as well as LCV segments.

To expand the product portfolio Tata Motors recently introduced the 25MT

GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform. Tata

plans to leverage on the strong presence of TDCV in the heavy-tonnage range

and introduce products in India at an appropriate time. This was mainly to

cater to the international market and also to cater to the domestic market

where a major improvement in the Road infrastructure was done through the

National Highway Development Project.

Tata remains India's largest heavy commercial vehicle manufacturer and Tata Daewoo

is the 2nd largest heavy commercial vehicle manufacturer in South Korea. Tata

Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and

World Truck and buses namely, GloBus and StarBus.

Hispano CarroceraMain article: Hispano Carrocera

In 2005, sensing an opportunity in the fully-built bus segment, Tata Motors acquired a

21% stake in Hispano Carrocera SA,[8] the leading European bus and coach cabin

maker. In 2009, the company picked up the remaining 79% stake in Hispano

Carrocera SA for an undisclosed sum, making it a fully-owned subsidiary.

Jaguar Cars and Land RoverMain articles: Jaguar Cars and Land Rover

After the acquisition of the British Jaguar Land Rover (JLR) business, which also

includes the Daimler, Lanchester and Rover brands,[9] Tata Motors became a major

player in the international automobile market. On 27 March 2008, Tata Motors

reached an agreement with Ford to purchase their Jaguar Land Rover operations for

US$2 billion. The sale was completed on 2 June 2008.[6]

In addition to the brands, Tata Motors has also gained access to two design centres

and two plants in UK. The key acquisition would be of the intellectual property rights

related to the technologies.

Joint ventures

Tata MarcoPolo released this low-floor bus in India and now it is widely used as

public transport in Delhi, Mumbai, Bangalore and Lucknow

Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of

Brazil. This joint venture is to manufacture and assemble fully-built buses and

coaches targeted at developing mass rapid transportation systems. The joint venture

will absorb technology and expertise in chassis and aggregates from Tata Motors, and

Marcopolo will provide know-how in processes and systems for bodybuilding and bus

body design. Tata and Marcopolo have launched a low-floor city bus which is widely

used by Chennai,Delhi, Mumbai,Lucknow and Banglore transport corporations.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel

engine technology.[10] Tata Motors sells Fiat cars in India and is looking to extend its

relationship with Fiat and Iveco to other segments. Tata has also formed several JV's

with many small companies in various countries around the world.

Tata NanoMain article: Tata Nano

Tata Nano

In January 2008, Tata Motors launched Tata Nano, the least expensive production car

in the world at about Rs. 100,000 (US $2,500).[11] The city car was unveiled during the

Auto Expo 2008 exhibition in Pragati Maidan, New Delhi.[12]

Tata has faced controversy over developing the Nano as some environmentalists are

concerned that the launch of such a low-priced car could lead to mass motorization in

India with adverse effects on pollution and global warming. Tata has set up a factory

in Sanand, Gujarat and the first Nanos are to roll out summer 2009.

Tata Nano Europa has been developed for sale in developed economies and is to hit

markets in 2010 while the normal Nano should hit markets in South Africa, Kenya

and countries in Asia and Africa by late 2009. A battery version is also planned.

Tata has also been approached by a province in France named Moselle to setup a Tata

Nano manufacturing plant.

Tata AceMain article: Tata Ace

Tata Ace was India's first mini truck

Tata Ace, India's first indigenously developed sub-one ton mini-truck, was launched

in May 2005. The mini-truck was a huge success in India with auto-analysts claiming

that Ace had changed the dynamics of the light commercial vehicle (LCV) market in

the country by creating a new market segment termed the small commercial vehicle

(SCV) segment. Ace rapidly emerged as the first choice for transporters and single

truck owners for city and rural transport. By October 2005, LCV sales of Tata Motors

had grown by 36.6 percent to 28,537 units due to the rising demand for Ace. The Ace

was built with a load body produced by Autoline Industries.[13] By 2005, Autoline was

producing 300 load bodies per day for Tata Motors. Tata Ace - Apka Pyaara Chota

Hathi.

Ace is still a top seller for TML with 5M units sold to date (June 2010).[14]

Ace has also been exported to several European, South American and African

countries and all-electric models are sold through Chrysler's Global Electric

Motorcars division.[15]

Compressed air carMain article: Tata OneCAT

Tata OneCAT

Motor Development International of France has developed the world's first prototype

of a compressed air car, named OneCAT.[16] In 2007, MDI owner Guy Negre was

reported to have "the backing of Tata".[16]

It has airtanks that can be filled in 4 hours by plugging the car into a standard

electrical plug. In 2008 MDI planned to also design a gas station compressor, which

would fill the tanks in 3 minutes.[17] There are no gasoline costs and no fossil fuel

emissions from the vehicle when run in town, but "the compressed air driving the

pistons can be boosted by a fuel burner".[17]

OneCAT is a five seat vehicle with a 200-litre (7.1 cu ft) trunk. With full tanks it is

said to run at 100 km/h (62 mph) for 90 kilometres (56 mi) range in urban cycle.

There are severe physical arguments pleading against those figures. In December

2009 Tata's vice president of engineering systems confirmed that the limited range

and low engine temperatures were causing difficulties.[18]

Electric vehicles

Tata Motors unveiled the electric versions of passenger car Tata Indica and

commercial vehicle Tata Ace. Both run on lithium batteries. The company has

indicated that the electric Indica would be launched locally in India in about 2010,

without disclosing the price. The vehicle would be launched in Norway in 2009.[19]

Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a

50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of

Norway for US$1.93 M, which specialises in the development of innovative solutions

for electric vehicles, and plans to launch the electric Indica hatchback in Europe next

year.[20][21][22] On 17 Sept 2010 Tata motors presented to the DTC [ Delhi Transport

corporation] Four CNG - Electric Hybrid lowfloored Starbuses to be used for

commonwealth games.These will be the first Environmentally friendly buses to be

used for public transportation in India.

TATA IN INDIA

A loaded Tata truck on a Rajasthan highway

Tata Motors Limited is India’s largest automobile company, with revenues of

35,651.48 crore (US$7.88 billion) in 2007-08.[23] 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.[23] 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.[24] The company’s

manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) 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. The company is establishing a

new plant at Sanand (Gujarat). The company’s dealership, sales, services and spare

parts network comprises over 3500 touch points; Tata Motors also distributes and

markets Fiat branded cars in India.[23]

Tata's global operations

Tata Motors has been in the process of acquiring foreign brands to increase its global

presence and currently has operations in the UK, South Korea, Thailand and Spain.

Among them is Jaguar Land Rover, a business comprising the two iconic British

brands that was acquired in 2008. Tata Motors has also acquired from Ford the rights

of Rover. In 2004, it acquired the Daewoo Commercial Vehicles Company, South

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 Spanish bus and coach

manufacturer,[8] giving it controlling rights of the company. Tata Motors continued its

product line expansion through the introduction of new products into the market range

of buses (Starbus & Globus) as well as trucks (Novus). These models were jointly

developed with its subsidiaries Tata Daewoo and Hispano Carrocera. In May, 2009

Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo [25]

They will debut in South Korea, South Africa, the SAARC countries and the Middle-

East by the end of 2009 [25] In 2006, it formed a joint venture with the Brazil-based

Marcopolo to manufacture fully-built buses and coaches for India and other

international markets.[26] Tata Motors has expanded its production and assembly

operations to several other countries including South Korea, Thailand, South Africa

and Argentina and is planning to set up plants in Turkey, Indonesia and Eastern

Europe.[23] Tata also has franchisee/joint venture assembly operations in Kenya,

Bangladesh, Ukraine, Russia and Senegal.[27] Tata has dealerships in 26 countries

across 4 continents.[28] Though Tata is present in many countries it has only managed

to create a large consumer base in the Indian Subcontinent namely India, Bangladesh,

Bhutan, Sri Lanka and Nepal and has a growing consumer base in Italy, Spain and

South Africa

PRODUCTS

Passenger cars and utility vehicles

Tata Xover

Tata Nano Europa

Tata Starbus Low Floor 1610

Tata Marcopolo buses in the Delhi BRT.

Tata Sierra (Discontinued)

Tata Estate (Discontinued)

Tata Sumo/Spacio

Tata Safari

Tata Indica

Tata Vista

Tata Indigo

Tata Manza

Tata Indigo Marina

Tata Winger

Tata Magic

Tata Nano

Tata Xenon XT

Tata Aria

Concept vehicles

2000 Aria Roadster

2001 Aria Coupe

2002 Tata Indiva

2004 Tata Indigo Advent

2005 Tata Xover

2006 Tata Cliffrider

2007 Tata Elegante

2009 Tata Pr1ma

2010 Tata Versa

2010 Tata Essota

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 chassis)

Tata 1612/1616 (Heavy bus chassis)

Tata 1618 (Semi Low Floor bus chassis)

Tata 1610/1623 (Rear Engined Low Floor bus chassis)

Tata 1613/1615 (Medium truck)

Tata 2515/2516 (Medium truck)

Tata Starbus (Branded Buses for city,inter city,school bus and standard

passenger transportation)

Tata Globus (Range of fully built luxury coaches)

Tata Hispano Globus (Rear Engined Inter city coach)

Tata Marcopolo Bus (Low Floor, Semi Low Floor buses for Mass Rapid

Transit and also standard passenger transportation Buses)

Tata 3015 (Heavy truck)

Tata 3118 (Heavy truck) (8X2)

Tata 3516 (Heavy truck)

Tata 4018 (Heavy truck)

Tata 4923 (Ultra-Heavy truck) (6X4)

Tata Novus (Heavy truck designed by Tata Daewoo)

Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo)

Military vehicles

Tata LSV (Light Specialist Vehicle)

Tata Mine Protected Vehicle (4x4)

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

Tata SD 1015 TC (4x4)

Tata LPTA 1615 TC (4x4)

Tata LPTA 1621 TC (6x6)

Tata LPTA 1615 TC (4x2)

Tata Winger Passenger Mini Bus

Tata Motors technology and design subsidiaries

Tata has dozens of technology and design subsidiaries. These include the main ones.

PRODUCT MIX

Indica Indigo

Sumo

Safari

TELCO

Currently the largest automobile company in India, Tata Motors ranks among the top

10 commercial vehicle producers in the world.

The transition of Tata Motors from being a predominantly commercial vehicle

manufacturer to a complete automobile company began in the early 1990's with the

launch of the first Sports Utility vehicle from Tata- the Sierra and later the Tata

Estate. The insights gained into customer needs in these markets led to the

development of another world-class Sports Utility Vehicle, the Tata Safari, launched

in 1998.

Soon after launching the Safari, Tata Motors made an aggressive foray into the

mainline passenger car market with its small car, the Tata Indica. The Indica fulfills

the Tata Group Chairman Ratan Tata's vision of developing and manufacturing a truly

Indian car that would use modern technology and contemporary styling of the small

car genre. It went on to set a benchmark in terms of its value proposition in terms of

best value for money in its segment and internal spaciousness.

The overwhelming customer response that the Indica generated at its launch in early

1999 has translated into its capturing more than 17% of the premium small car

segment, and 8 % of the entire passenger car market in India within a year.

Clearly identifying the core areas as R&D, manufacture of critical components and

the final vehicle assembly, the company continues to be open to global alliances to

effectively enhance its competitiveness in the fast globalizing Indian markets.

Setting standards of corporate governance, Tata Motors focuses on Complete

Customer Satisfaction. With benchmarking systems to sell world-class products and

services, Tata Motors continues to uphold the trust of its various stakeholders, viz.

shareholders, customers, employees and business associate.

Business Sector

The Tata Group runs businesses in seven key industrial sectors, namely, Materials,

Energy, Chemicals, Consumer Products, Engineering, Communications and

Information Systems, and Services. TELCO is Tata’s flagship company in the

Engineering sector.

Business Models

TELCO is primarily a Business-to-Consumer Company (B2C), serving various needs

of a number of its customers. It also practices the Business-to-Business (B2B) Model,

though at a much lower scale.

Business

TELCO is into the business of manufacturing and selling medium, heavy and light

commercial vehicles, multi utility vehicles and passenger cars.

Its major product line can be basically classified into three broad categories. There are

various sub-brands and products in these categories:

1. Passenger Cars

2. Utility Vehicles

3. Commercial Vehicles

TELCO currently has three products in its Passenger Car division namely,

a. Tata Indica

b. Tata Indigo

c. Tata Safari

It is in the process of coming out with another member in the passenger car family,

the all-new Indica Sedan, set out to storm the Indian Mid-Size Passenger car

segment, which would be launched in the last quarter of 2008.

Confirming to International standards all these vehicles are available with various

features such as petrol & diesel versions, 2-wheel and 4-wheel drives etc.

TELCO currently has three products in its Multi-Utility vehicle division namely,

a. Tata Sumo

b. Telco Sport

c. Telcoline Pickup Vans

All these vehicles come only in diesel-engine versions and are quite popular on the

Indian roads, especially on the highways and in the rural areas. They are known for

their build quality, reliability, ruggedness, and the various uses that they can be put at.

They are used as people carriers, as emergency vans, goods carriers, pick-up vehicles

and so many more uses.

The utility pick-up vans of Tata International are made for all kind of terrains and are

facilitated with features like 2 & 4 wheel drive, single & crew cabs etc.

TELCO is the undisputed leader as regards the Commercial Vehicle segment. It has a

large number of products in this segments classified as various types namely,

a. Buses

- Small Buses (4 models)

- Big Buses (4 models)

b. Trucks

- Light Trucks (5 models)

- Medium/Heavy Trucks (9 models)

c. Tippers (3 models)

d. Tractors (3 models)

S.W.O.T ANALYSIS

STRENGTHS

New investment by Tata in factories in the US and China saw 2005 profits rise,

against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen

($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators

argue that this is because the company has the right mix of products for the markets

that it serves. This is an example of very focused segmentation, targeting and

positioning in a number of countries.  

In 2003 Tata knocked its rivals Ford into third spot, to become the World's second

largest carmaker with 6.78 million units. The company is still behind rivals General

Motors with 8.59 million units in the same period. Its strong industry position is based

upon a number of factors including a diversified product range, highly targeted

marketing and a commitment to lean manufacturing and quality. The company makes

a large range of vehicles for both private customers and commercial organisations,

from the small Yaris to large trucks. The company uses marketing techniques to

identify and satisfy customer needs. Its brand is a household name. The company also

maximizes profit through efficient manufacturing approaches (e.g. Total Quality

Management).  

WEAKNESS

Being big has its own problems. The World market for cars is in a condition of over

supply and so car manufacturers need to make sure that it is their models that

consumers want. Tata markets most of its products in the US and in Japan. Therefore

it is exposed to fluctuating economic and political conditions those markets. Perhaps

that is why the company is beginning to shift its attentions to the emerging Chinese

market. Movements in exchange rates could see the already narrow margins in the car

market being reduced.  

The company needs to keep producing cars in order to retain its operational

efficiency. Car plants represent a huge investment in expensive fixed costs, as well as

the high costs of training and retaining labour. So if the car market experiences a

down turn, the company could see over capapacity. If on the other hand the car

market experiences an upturn, then the company may miss out on potential sales due

to under capacity i.e. it takes time to accommodate. This is a typical problem with

high volume car manufacturing.

OPPURTUNITIES

Lexus and Tata now have a reputation for manufacturing environmentally friendly

vehicles. Lexus has RX 400h hybrid, and Tata has it Prius. Both are based upon

advance technologies developed by the organization. Rocketing oil prices have seen

sales of the new hybrid vehicles increase. Tata has also sold on its technology to other

motor manufacturers, for example Ford has bought into the technology for its new

Explorer SUV Hybrid. Such moves can only firm up Tata's interest and investment in

hybrid R&D.  

Tata is to target the 'urban youth' market. The company has launched its new Aygo,

which is targeted at the streetwise youth market and captures (or attempts to) the

nature of dance and DJ culture in a very competitive segment. The vehicle itself is a

unique convertible, with models extending at their rear! The narrow segment is

notorious for it narrow margins and difficulties for branding.  

THREATS

Product recalls are always a problem for vehicle manufacturers. In 2005 the company

had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front

suspension systems. Tata did not give details of how much the recall would cost. The

majority of affected vehicles were sold in the US, while the rest were sold in Japan,

Europe and Australia.  

As with any car manufacturer, Tata faces tremendous competitive rivalry in the car

market. Competition is increasing almost daily, with new entrants coming into the

market from China, South Korea and new plants in Eastern Europe. The company is

also exposed to any movement in the price of raw materials such as rubber, steel and

fuel.

Mission Statement Leadership – Maintain our relationship of the Indian industry Throughout the

continuous modernization and expansion of our Manufacturing facilities and

activities and through establishment of a wide and efficient marketing network

Profitability-Achieve a fair and reasonable return on capital by promoting

productivity throughout the company

Growth- Ensure a steady growth of business by strengthening our position in the

cement industry.

Quality- Maintain high quality of our products and services and ensure their

supply their supply at fair prices.

Equity- Promote and maintain fair industrial relations and an environment for

the effective involvement, welfare, and development of staff at all levels.

Pioneering- Promote research and development efforts in the areas of product

development and energy, and fuel conservation and to innovate and optimize

productivity.

PORTERS 5 FORCES MODELThe model of pure competition implies that risk adjusted rates of return should be

constant across firms and industries . Michael Porter provided a framework that

models an industry as being influenced by five forces . the strategic business manager

seeking to develop an edge over rival firms can use this model to better understand

the industry context in which the firm operates.

Tata Motors also analysis on this theory . According to it Since there is stiff

competition in the textile industry with a lot of key players already playing business

so it posses a serious threat to Tata Motors but it has stood still and has still shown

good results.

Since the textile industry and the economy has a whole are both growing , there are

numerous opportunities for new entrants to enter in the market but it would be

seriously difficult for it to launch itself.

Since there are not much substitute products for clothes and other products that Tata

Motors built , therefore it doesn’t impose much threat to it , but researches can do

great guns and thus create problem for Tata Motors

Since Tata Motors is a big manufacturer itself for its products therefore there is not

much pressure from the countable suppliers it has.

Market segmentation

It is the act of dividing a market into distinct groups of buyers who require

separate products.

Its market research division has segmented consumers on the basis of

following:

1. Geographic variables

2. Demographic variables

3. User status and lifestyle

Market targeting

Act of developing measures of segment attractiveness.

Involves evaluating various market segments.

It targets different segments of population of all categories of age groups.

Also targets the population outside India.

Market positioning

India’s largest company.

TATA MOTORS is market capital and no.5 in sales and profit.

TATA MOTORS is the market leader.

They are the highest contributor in revenue.

Marketing strategy adopted

Advertisement

1. Tata Motors

2. Radio

3. Internet

4. Newspaper/magazines

5. Hoardings

MARKETING STRATEGIES

INTRODUCTION AND IMPORTANCE OF MARKETING

STRATEGIES

Marketing strategy is a process that can allow an organization to concentrate its

limited resources on the greatest opportunities to increase sales and achieve a

sustainable advantage. A marketing strategy should be centred on the key concept

that customer satisfaction is the main goal. Marketing strategy is a method of focusing

an organization's energies and resources on a course of action which can lead to

increased sales and dominance of a targeted market niche. A marketing strategy

combines product development, promotion, distribution, pricing, relationship

management and other elements; identifies the firm's marketing goals, and explains

how they will be achieved, ideally within a stated timeframe. Marketing strategy

determines the choice of target market segments, positioning, marketing mix, and

allocation of resources. It is most effective when it is an integral component of overall

firm strategy, defining how the organization will successfully engage customers,

prospects, and competitors in the market arena. Corporate strategies, corporate

missions, and corporate goals. As the customer constitutes the source of a company's

revenue, marketing strategy is closely linked with sales. A key component of

marketing strategy is often to keep marketing in line with a company's

overarching mission statement.

Importance of Marketing Strategy The importance of marketing plans outweighs any other decision that can be

taken in the realm of marketing strategies. Yes, marketing plan is essential to

grab the market segment before any other player captures the market. What

are the target groups? Which segment of the market presents higher revenue

generating opportunities? These are some of the questions that marketing

teams ponder over, in the pursuit of achieving a good plan.

This is where the importance of marketing research comes into picture.

The market research team analyzes and understands the requirements of the

consumers. Conducts polls and researches and comes up with data and

statistics that help to logically target a market.

Another factor that governs the marketing plans is the marketing mix

elements. Marketing mix elements are the sets of factors that help firms to

achieve their targets of reaching the products to the consumers and also

achieve organizational objectives. The importance of marketing mix is, that it

takes into TATA MOTORS ount the four P's of marketing, that

are Product, Price, Promotion and Place of distribution.

MARKETING MIX OF THE COMPANY

MARKETING MIX

The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes.XFour P'sElements of the marketing mix are often referred to as 'the four Ps':

Product - A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible

products are service based like the tourism industry & the hotel industry or

codes-based products like cellphone load and credits. Typical examples of a

mass produced tangible object are the car and the disposable razor. A less

obvious but ubiquitous mass produced service is a computer operating system.

Packaging also needs to be taken into consideration. Every product is subject

to a life-cycle including a growth phase followed by an eventual period of

decline as the product approaches market saturation. To retain its

competitiveness in the market, product differentiation is required and is one of

the strategy to differentiate from its competitors.

Price – The price is the amount a customer pays for the product. It is

determined by a number of factors including market share, competition,

material costs, product identity and the customer's perceived value of the

product. The business may increase or decrease the price of product if other

stores have the same product.

Place – Place represents the location where a product can be purchased. It is

often referred to as the distribution channel. It can include any physical store

as well as virtual stores on the Internet. Place is not exactly a physical store

where it is available Place is nothing but how the product takes place or create

image in the mind of customers. It depends upon the perception of customers.

Promotion represents all of the communications that a marketer may use in

the marketplace. Promotion has four distinct elements: advertising, public

relations, personal selling and sales promotion. A certain amount of crossover

occurs when promotion uses the four principal elements together, which is

common in film promotion. Advertising covers any communication that is

paid for, from cinema commercials, radio and Internet adverts through print

media and billboards. Public relations are where the communication is not

directly paid for and includes press releases, sponsorship deals, exhibitions,

conferences, seminars or trade fairs and events. Word of mouth is any

apparently informal communication about the product by ordinary individuals,

satisfied customers or people specifically engaged to create word of mouth

momentum. Sales staff often plays an important role in word of mouth and

Public Relations (see Product above).

STP ANALYSIS OF THE COMPANY

Segmentation

TATA MOTORS has segmented its customer in the following ways:-Understanding needs and preferences of consumers -- Having housing, infrastructure, and commercial construction, as demand drivers, the company analyze the needs and preferences of consumers in these sectors.Grouping customers based on their needs and preferences -- Customers with similar needs and preferences are included in this segment.Targeting the segment that the company can best meet the needs and preferences of - The Company targets the customers, of which it can meet the needs and preferences. I.e. customer needs higher- strength or low price.Branding the commodity -- Though being a commodity product, branding is important for a company. The company positions its brand among Architects and Builders rather than household individuals.Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.

Targeting Its customer base represents the masses of India - individual homebuilders in

small towns, rural and semi-urban India.

The company targets on the important projects like dams, roads in the country

It targets the Manufacturing companies like L&T etc

It Targets Indian Railways.

It targets an individual building his home(Retail Marketing)

PositioningA good brand positioning help guide marketing strategy by clarifying the brands

essence but goals it help the consumer achieve and how it does so in a unique way.

The result of the positioning is the successful creation of a customer focused value

proposition, a cogent reason why the target market should buy the product.

BCG MATRIX

In BCG Matrix product or business unit are identified as Stars, Cash Cow,Dogs, Question mark. The Matrix can be explained are as follows.Stars (high growth, high market share) Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept.

]Cash Cows (low growth, high market share) Profits and cash generation should be high. Because of the low growth, investments which are needed should be low.

Cash Cows are often the stars of yesterday and they are the foundation of a company.

Dogs (low growth, low market share) Avoid and minimize the number of Dogs in a company. Watch out for expensive ‘rescue plans’. Dogs must deliver cash, otherwise they must be liquidated.

Question Marks (high growth, low market share) Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share.If the market share remains unchanged, Question Marks will simply absorb great amounts of cash.

Either invests heavily, or sell off, or invest nothing and

generate any cash that you can. Increase market share or

deliver cash.

USP

The Unique Selling Proposition (also Unique Selling Point or USP) is a marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. The term was invented by Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects.X

The USP of Tata Motors is They say there are four M?s of advertising, which are Mission, Money, Media and Message; the most important part is the message execution and image building. Imagery is the kind of associations a brand could get linked with over a period of time.

It has an impact on how consumers perceive the brand and how they will react to it in the long run. The ultimate goal of the advertiser is to ensure that his/her idea marries the brand.

1. Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• TATA MOTORS ording to customer’s demand they make their strategies by

keeping following points in mind;

• Which customer they will serve?

Which customer they will serve? They serve their customers on the bases of income level, age through market

segmentation.

Their main segment which they has captured are combination of higher

incomes & dual career families.

How will they serve these customers?

They fulfill their customer’s demand through;

Value proposition

Positioning

Unique selling proposition (USP)

3. CAPTURE VALUE FROM CUSTOMER IN RETURN:

• Committed to providing uncompromising product quality offering customers

the highest value for money & giving service that is warm, friendly &

personal.

• They also follow social factors to maintain their image through corporate

social responsibility.

4. Designing a Customer Driven Marketing Strategy:

• Their main strategy that they still follow today is the diversification of

products they offer.

• TATA MOTORS ording to customer’s demand they make their strategies by

keeping following points in mind;

LEARNINGS

It was a great opportunity to carry a research project on such a reputed

organization, which gave me a good learning experience and knowledge about

the products and industry.

Another very crucial area that needs mention is the experience I gained while

talking to & interacting with people. This has been a truly enriching

experience because interacting with people with varied profiles helped in

enhancing my communication skills.

The project I was doing was going simultaneously with my job in ‘Dainik

Jagran’, so while doing this project I learned how to manage time in a most

effective manner.

RECOMMENDATIONS

Tata Motors should come with some less calorie products so that it does not

harm the growing children who like eating only junk food. It should come up

with more of products, which are nutritious because growing children are the

major customers of Tata Motors.

Tata Motors should first advertise and then come up with new products in the

outlets to create maximum recall in the mind of potential customer.

It should come up with some spicy items also to beat the competition from

other brands

CONCLUSION

Tata Motors has always been a key player in the real estate industery since its

formation .

The firm has risen in all aspects over the period of time . The decision of

going public was a wise one but perhaps the firm did not anticipate what the

future had in store for them and did not utilize the funds wisely .

The Company had also increased Paints prices by a great deal but was forced

to reduce them after the demand dissapeared .

Later on the firm has regained some strength and is all set for the future .

BIBLIOGRAPHY

Reference books:

Kothari. C. R., Research Methodology, New Age International (P) Limited,

New Delhi, 2006

Internet:

http://www.tata.com/0_careers/our_people/20020214_suman1.htm

http://www.tata.com/0_b_sectors/index.htm

http://www.cybersteering.com/auto_makers/telco/tata.html

http://www.tata.com/tata_engg/index.htm

http://www.tatainternational.com/automob_products.asp

http://www.tata.com/tata_engg/articles/index.htm

http://www.telcoindia.com/home.htm

http://www.tata.com/tata_engg/media/20020228.htm

http://www.tata.com/tata_engg/articles/2000106051indica2.htm

http://www.tata.com/tcs/articles/20011110_auto_engg_service(1).htm

www.marutiudyog.com

www.hyudaimotorindia.com

www.autoweb.com

Magazines:

Auto Car 2005

Auto India January 2004.