final.sm- tata motors

8/8/2019 Final.sm- Tata Motors

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Strategies at TATA MOTORS

BY:

Saurabh Tamhankar (359)

Ajit Sakhre ()

Mahesh Patil ()Mandar Bhagwat ()

Sagar Kirme ()

Vinayak Shetty ()


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INTRODUCTION OF TATA MOTORS

Tata Motors Limited, formerly known as TELCO (TATA Engineering &

Locomotive Co.)

Established in 1945 in Mumbai, India

Chairman Mr. Ratan Tata

Began manufacturing locomotives

First commercial vehicle in 1954 in a collaboration with Daimler- Benz AG


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It is India's largest company in automobile & commercial vehicle.Its among the Top 3 Passenger Vehicle Manufacturer in India

Tata motors ranked 19TH largest automaker in world.

Tata motors ranked 2ND largest manufacturer of commercialvehicle.

It have 70% market share, in domestic commercial vehicle.

1986 the company created and sold the first Light CommercialVehicle.

INTRODUCTION OF TATA MOTORS


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SWOT Analysis of Tata Motors

Strengths Brand Image

Dealers and service network

Large shareholders base for capitalneeds

Own steel plants

Weaknesses Lack of competence

few models lined up

Not a strong player in luxurysegment

Opportunities largest aspiring middle class

prospective buyers from 2-wheelersegment

Threats strong competition

safety and realibility

aggressive policies by maruti


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STRATEGIES

PRODUCT STRTEGY

OPERATIONS STRATEGIES

MARKETING STRATEGIES

H.R. STRTEGY


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Products

TATAMotors

Commercial Vehicles

Commercial Vehicles

Passenger Vehicles

Passenger Vehicles

Military Vehicles

Military Vehicles


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Product Strategy

Tata Commercial Vehicles High Technology & Expertise

High Engine Power Vehicles

Launched 11 New Products (2008 -09 )

Ex: Trucks & Tractors, light commercial vehicles, Luxury buses &

Compact City Buses

Tata Military Vehicles

Specialization in Military Defense TransportSolution

Introducing new trucks for military defense purpose

Large Investments in R & D ,to meet international standards

Tata Passenger Vehicles

Entered market in 1992, launched Indica, the first fully passenger car.

Tata Motors developed, Mid-sized sedan Cars (Tata Indica,

Tata Indigo)Mid-sized SUV Cars (Tata Safari)


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Product Strategy- Tata Nano

Launched in Mumbai on 23rd March,2009 by Mr. Ratan Tata

Cheapest Car in the World

Priced at Rs 1 Lakh

For the Masses. Common Mans Car

Received Wall street Journal Technology Innovation Award

Received Rs.25 Bn from the booking process

Huge demand in the market ,less supply

Plan to launch in European Markets


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H.R. philosophy Caring, show respect compassion and humanity for colleagues.

Work cohesively with colleagues across the group.

Encourage self-sufficiency.

1. Hiring Practices

2. Providing various offers to employees

3. No salary cuts & increase in resources & development

H.R. STRTEGY


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Quality management:

Quality management is crucial to effective operations management.

Most recent advancement in quality, such as benchmarking & total

quality management have resulted in advancements to operationsmanagement as well.

Inventory management:

Innovative methods such as Just-in-time inventory control, can save

cost. more products and more services can be offered to customer

more quickly.

OPERATIONS STRATEGIES


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ADVERTISING

Advertising is the common way to make public aware of the

new product. Besides, advertising also help to create a brandimage. Over the years, Tata Motors have been successful in

creating a brand image for itself.

Over the years Tata Motors have been successful in creatingtheir brand image especially they use some famous stars as

their spokesman.

MARKETING STRATEGIES


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Distribution Strategy

Tata motors business has been has been extended to the

overseas. i.e. to the Europe, Africa, U.S. & Australia.

Hence it has no. of showrooms in India & outside of India.

The exclusive showrooms are the best distribution channels for

Tata itself.


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SALES PROMOTION

Tata Motors has felt its presence across India andabroad with its showrooms.

BRANDING

In case of Tata Motors the branding strategy used

is corporate name assigned with individual productname , and the individual name individualizes thenew product.


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Growth Strategy:

Growth

Organic

Inorganic

Market Global Market

Horizontal Unrelated

Related

Expansion Diversification

B\WIntegration

Vertical

F\W

Integration


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Merger Acquisitions & Joint Ventures

Tata Motors has been aggressively acquiring foreign brands to increase its global

presence.

2004 - Bought Daewoo's truck manufacturing unit,

- Now known as Tata Daewoo Commercial Vehicle, in South Korea.

2005 - Acquired a 21% stake in Hispano Carrocera, Spain.

2006 JV with Fiat to manufacture Passenger Cars and Engines

2008 - Purchased Jaguar Cars and Land Rover from Ford Motor for $2.3bn

2008 - Acquired rights from Ford, to three other brand names: Daimler,

Lanchester and Rover

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Other Strategies

Introduction of New Versions

Modifications in Older Vehicles. (Sumo)

Introduction of Cost Effective Cars ( Nano)

Tapping the Rural Market

Tata Motor Finance

Tie up with various State Government for providing Tata Buses for public services.

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Competitors

CommercialVehicles

PassengerVehicle

Ashok Leyland

Volvo Motors

Swaraz Mazda

Mahindra Motors

Maruti Suzuki

Honda Motors

Hyundai Motors

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Effect ofExternal Environment on Tata Motors

(2008 2009 )

External

Environment Market Conditions

Government Policies

Consumer Sentiments

Over Capacity in the Market

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CV sales dripped by 15.2% PV sales fell by 4.8%

Exports reduced by 38.6%

Total Sales fell by 13.5%


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Future plans of Tata Motors

Current Business Condition are Uncertain , however industry expects theeconomy to grow by Q4,2009

Major Future Plans

1. Capitalize on Tata Nano - Fast Delivery

2. Launch New Commercial Vehicles

3. Tie up with more State Govts. for Efficient & Safe City Buses at low cost

4. Launch of Jaguar & Landrover Vehicles in India

5. Bridge the outstanding loans6. Focus on Cost Reduction

7. Expand Network


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Present and future challenges

Tata relies heavily on its sales in India.

Competitors has aggressive launches.

Joint ventures of competitors.

Volvo Group and Eicher Motors Joint Venture

Ashok Leylands acquisition with Avia.

The joint venture between Ashok Leyland and

Nissan Motors.


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Thank You.

References:

www.tatamotors.com

www.finance.yahoo.com

www.automobileindia.com

www.economictimes.com

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