APROJECT REPORT ON

TATA MOTORS

SUBMITTED BY:-Harshit JainISBE AMarketing Essentials

Index

Executive Summary

Introduction to the Auto mobile Industry

Introduction to TATA Group.

Introduction of TATA motors.

Corporate Profile.

Vision, Mission and Code of conduct.

Product line.

Customer values for TATA Motors

SWOT Analysis

S.T.P. Strategy of TATA Motors

Competition analysis

Executive Summary

The report talks about the Indian automobile industry in general and Indian automobile giant TATA Motors in particular. We have analyzed Indian automobile industry & its performance in the recent past. Particularly we have tried to track the path of TATA Motors expansion of international business in the recent past, at present as well as its future plans. We have also discussed the impact of current financial meltdown on the recent international ventures of the company. The company is rapidly increasing its global footprint and is aiming to match the standards of international automobile manufacturers in next 3 to 5 years. This rise to the level of a world-class automotive manufacturer would involve a large quantifiable increase in revenues from outside India with a focus on certain foreign markets. Currently international business contributes 18.4% to companys revenues. Company is aiming to increase it by 200% in near future to reduce its dependence on one single economy and one single business cycle. This ambition of the company has led to numerous joint ventures and increased activity in countries like the U.K., South Africa, South Korea, Thailand, Brazil and Spain, as well as the company is listing on the NYSE. With the recent acquisition of Jaguar Land Rover (JLR) from the Ford Motor company in early 2008, the company has entered into the world of high-end luxury brands. Customers of high-end luxury brands value image and exclusivity factors, while image and exclusivity conflict with the proposition of TMLs other recent venture, the inexpensive Nano. In this manner, the decision to compete in both the high-end luxury and low-end economy markets certainly creates a big and audacious task ahead for TML. If proven successful, this strategy would provide the company with high margin (JLR) as well as high volume (Nano) revenues. These two revenue streams, if proven compatible, could mitigate each others risks

Indian Automobile Industry The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent over the past five years, the Economic Survey 2008-09 tabled in parliament on 2nd July09 said.The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy, a finance ministry statement said. The automobile industry, which was plagued by the economic downturn amidst a credit crisis, managed a growth of 0.7 percent in 2008-09 with passenger car sales registering 1.31 percent growth while the commercial vehicles segment slumped 21.7 percent. Indian automobile industry has come a long way to from the era of the Ambassador car to Maruti 800 to latest M&M Xylo. The industry is highly competitive with a number of global and Indian companies present today. It is projected to be the third largest auto industry by 2030 and just behind to US & China, according to a report. The industry is estimated to be a US$ 34 billion industry. Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler & four wheeler segment. The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country. And India is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered by players like Tata Motors, Ashok Leyland, Volvo, Force Motors, Eicher Motors etc. The major players have not left any stone unturned to be global. Major of the players have got into the merger activities with their foreign counterparts. Like Maruti with Suzuki, Hero with Honda, Tata with Fiat, Mahindra with Renault, Force Motors with Mann.

Key Facts: India ranks 12th in the list of the world's top 15 automakers Entry of more international players Contributes 5% to the GDP Production of four wheelers in India has increased from 9.3 lakh units in 2002-03 to 23 Lakh units in 2007-08 Targeted to be of $ 145 Billion by 2016 Exports increased from 84,000 units in 2002-03 to 280,000 units in 2007-08

PSU segmement sales chart :-

Group Introduction:-

Jamsetji Nusserwanji Tata (1839 - 1904) was a pioneer of Indian industrialism as well as the founder of the Tata Group.TATAs first step in the business came in December 1859 when his father sends him to hongkong to open a branch with a sum of Rs. 21000. There he makes connections & buyers by the time he started a trading company & established it to the Japan , China, Europe, and the United States. IN 1969 he acquired a bankrupt oil mill in_Queen Victoria_ was proclaimed Empress of India.

In year 1868 Jamsetji Tata, started business with name as TATA since than company hasnt stop and became a global enterprise. Jamsetji were inspired by the spiritof nationalism which led the foot for the group. The group pioneeredseveral industries of national importance in India: steel, power, hospitality and airlines. In more recent times, the Tata groups pioneering spirit has been showcased by companies like Tata Consultancy Services, Indias first software company, with the international delivery model, and Tata Motors, which made Indias first indigenously developed car, the Indica, in 1998 and recently unveiled the worlds lowest-cost car, the Tata Nano, for commercial launch by end of the financial year 2008-09.

Tata has a rapidly growing business group based in India with significant international operations. Revenues in 2009-10 are estimatedat $62.5 billion (around Rs251,543crore), of which 61 per cent is from business outside India. The group employs around 350,000 people worldwide. The Tata name has been respected in India for 140 years for its adherence to strong values and business ethics. They have n number of companies in India and in collaboration with other foreign companies

INTRODUCTION TO TATA MOTORS:-

TATA motors is also known as TELCO.Tata Motors Limited is Indias largest automobile company, with revenues of Rs. 92519 crores (USD 20 billion) in 2009-10.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. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. The companys 23,000 employees are guided by the vision to be best in the manner in which we operate best in the products we deliver and best in our value system and ethics.Established in 1945, 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. Tata Motors, the first company from Indias engineering sectorto be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors 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.The foundation of the companys growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them in to customer-desired offerings through leading edge R&D. With over 2,500 engineers and scientists, the companys Engineering Research Centre, established in 1966,and has enabled pioneering technologies and products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first indigenously developed Light Commercial Vehicle, Indias first Sports Utility Vehicle and, in 1998, the TataIndica, Indias first fully indigenous passenger car. Within two years of launch,Tata Indica became Indias largest selling car in its segment. In 2005, Tata Motors created a new segment by launching the Tata Ace, Indias first indigenously developed mini-truck In January 2008, Tata Motors unveiled its Peoples Car, the Tata Nano, which India and the world have been looking forward to. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. When launched in India later in 2008, the car will be available in both standard and deluxe versions. The standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).The years to come will see the introduction of several other innovative vehicles, all rooted in emerging customer needs. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels.Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations.True to the tradition of the Tata Group, Tata Motors is committed in letter and

CORPORATE PROFILE:-

In 2004,TATA Motors acquired the Daewoo Commercial Vehicles Company, South Koreas 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 reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake aswell. Hispanos presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the companys pickup vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor Show 2008.Tata Motors is also expanding its international footprint, established through exports since 1961. The companys commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future

VISION

our products and services are globally competitive and that our enterprises operate to international standards in terms of quality and customer service. We will need to be extremely aggressive in the marketplace and much more proactive than we have been in the past in order to be leaders in our fields of business. We need a change of mindsets that break with past tradition in welcoming rather than resisting change.Become a globally networked enterprise seizing opportunities worldwide.

MISSIONTo be a competitive value provider in international business for Group companies and all our partners. Improve the quality of life of the communities. We serve through leadership in the sector of national economic significance.Tata Motors constantly looks for ways to offer the customer the best value for money.

CODE OF CONDUCTThe Tata group is committed to benefit the economic development of the countries in which it operates. No Tata company shall undertake any project or activity to the detriment of the wider interests of the communities in which it operates. A Tata company shall prepare and maintain its accounts fairly and accurately and in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country in which the company conducts its business affairs.A Tata company shall provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, gender, sexual orientation, age, nationality, ethnic origin or disability. Tata company shall be committed to supply goods and services of world class quality standards, backed by after-sales services consistent with the requirements of its customers, while striving for their total satisfaction. The quality standards of the companys goods and services shall meet applicable national and international standards.

PRODUCT LINE:- Passenger Cars and Utility SegmentTata Sierra (Discontinued)Tata Estate (Discontinued)Tata Sumo/SpacioTata SafariTata IndicaTata VistaTata IndigoTata ManzaTata Indigo MarinaTata WingerTata MagicTata NanoTata Xenon XTTata Aria

Concept Segment2000 Aria Roadster2001 Aria Coupe2002 Tata Indiva2004 Tata Indigo Advent2005 Tata Xover2006 Tata Cliffrider2007 Tata Elegante2009 Tata Pr1ma2010 Tata Versa2010 Tata Essota Commercial SegmentTata AceTata TL/Telcoline/207 DI Pickup TruckTata 407 Ex and Ex2Tata 709 ExTata 809 Ex and Ex2Tata 909 Ex and Ex2Tata 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 SegmentTata LSV (Light Specialist Vehicle)Tata 2 Stretcher AmbulanceTata 407 Troop Carrier, available in hard top, soft top, 4x4, Tata LPTA 713 TC (4x4)Tata LPT 709 ETata SD 1015 TC (4x4)Tata LPTA 1615 TC (4x4)Tata LPTA 1621 TC (6x6)Tata LPTA 1615 TC (4x2)Tata Winger Passenger Mini BusCustomer Values for TATA Motors :- Tata Motors leads not only in market share, but also tops in Customer SatisfactionTata Motors leader in the Heavy Commercial Vehicle segment (HCV) has been adjudged as the forerunner in the first TNS TruckTrak 2006 Customer Satisfaction Study in Trucks. Tata Motors leads in the key medium and heavy truck category above 10 Tons with a truck industry highest index of 90 in the Tractor-Trailer segment. In fact in all three segments of M&HCV truck market Customer Satisfaction (expressed as a TRI*M index) is highest for Tata Motors.

In two-axle 16 tonne medium truck category, TRI*M index of Tata Motors is the highest at 81. In the 25 tonne Multi-axle vehicle segment, where the highly popular 2515 TC of Tata Motors is positioned, its Customer Satisfaction stands at 82 which is again the highest and in the tractor-trailer segment Tata Motors excels with a truck industry highest TRI*M index of 90. Thus in various segments of M&HCV truck market, Tata Motors leads in market share as well as tops in Customer Satisfaction. This unique combination of market leadership and leadership in customer satisfaction has been ensured by constant endeavors to improve product quality and enhance customer ownership experience.

TNS Truck Trak is the first ever Syndicated Study on Customer Satisfaction of trucks - maps customer expectations in the dynamic truck market so that manufacturers can prepare themselves to meet them. The study analyses the responses of over 5000 Truck customers in areas of 'Sales Satisfaction' and 'Service Satisfaction', across the country. TNS have vast experience in conducting Customer Satisfaction Studies for Automobiles and have in the past conducted similar studies for passenger cars and two wheelers.

Across the industry dealers have largely managed to provide a smooth purchase process to ensure customers find it easy to choose and buy their preferred commercial vehicles. While the industry scores high in purchase experience, the segment that has done better than the rest in purchase experience is Tractor Trailer.

Customization the big opportunity: Truck customers have found the quality of new vehicles delivered being very good and is fast matching customer expectations like in the rest of the automotive industry. But they feel manufacturers need to provide customization in standard features, which could be a great opportunity area for future. Customer handling, during the delivery process, needs improvement, like explaining warranty and service terms clearly.

After Sales Service the key customer concern:As in the rest of the automotive industry after sales service is a concern area for customers as their expectations on the overall quality continue to go higher.After Sales service is rated considerably lower than the purchaseexperience.

In the past truck service centres always left a lot to be desired on basic infrastructure and lagged behind their cousins in the car and two-wheeler segments. However, the study shows that now customers are extremely happy with the overall infrastructure for servicing and customer comfort at thed ealerships.

The study also finds that managing customer expectations becomes increasingly challenging as the length of vehicle ownership increases. SWOT Analysis - Tata Motors Limited The company began in 1945 and has produced more than 4 million vehicles. Tata Motors Limited is the largest car producer in India. It manufactures commercial and passenger vehicles, and employs in excess of 23,000 people.StrengthsThe internationalization strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian company leaned work discipline and how to get the final product 'right first time.' The company has a strategy in place for the next stage of its expansion. Not only is it focusing upon new products and acquisitions, but it also has a programme of intensive management development in place in order to establish its leaders for tomorrow. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America. WeaknessesThe company's passenger car products are based upon 3rd and 4th generation platforms, which put Tata Motors Limited at a disadvantage with competing car manufacturers. Despite buying the Jaguar and Land Rover brands (see opportunities below); Tat has not got a foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from lucrative segments in a more aspiring India? One weakness which is often not recognised is that in English the word 'tat' means rubbish. Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths). OpportunitiesIn the summer of 2008 Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK 2.3 million. Two of the World's luxury car brand have been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times more than a standard Nano! The new global track platform is about to be launched from its Korean (previously Daewoo) plant. Again, at a time when the World is looking for environmentally friendly transport alternatives, is now the right time to move into this segment? The answer to this question (and the one above) is that new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a very proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%. ThreatsOther competing car manufacturers have been in the passenger car business for 40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production. Sustainability and environmentalism could mean extra costs for this low-cost producer. This could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys into other brands this problem could be alleviated. Since the company has focused upon the commercial and small vehicle segments, it has left itself open to competition from overseas companies for the emerging Indian luxury segments. For example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a target for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of fronts. The price of steel and aluminium is increasing putting pressure on the costs of production. Many of Tata's products run on Diesel fuel which is becoming expensive globally and within its traditional home market.

Segmenting, Targeting and Positoning Strategy Of TATA Motors :- A 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 competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal.From the time of introduction TATA GROUP is following a simple group values these are INTEGRITY FAIR HONESTY TRANSPARENCIES ON ALL DEALINGS.UNDERSTANDING CARE RESPECT COMPASSION FOR CUSTOMER AND COLLEAGES.EXCELLANCE HIGHEST POSSIBLE STANDARDS IN QUALITY OF GOODS AND SERVICES.UNITY BUID STRONG RELATIONS WITH PARTNERS AND CUSTOMERS RESPONSIBILITYWHAT COMES FROM THE PEOPLE GOES BACK TO THE PEOPLE MANY.

These policies help or become a path for the market strategies & led a solid foundation for introduction of their products and services, which can be easily visible at the time of launching of TATA NANO. 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 around its manufacturing locations.Riding high on its success of mini-truck Ace, Tata Motors launched Magic and Winger to target market segment ranging from rural interiors to high-end luxury mass transportation. The announcement can be seen as a pre-cursor to the launch of much awaited Rs.1 lakh passenger car.The new launches are done in a process to get a substantial market share in MUV segment and also target the three-wheeler passenger vehicle market. It could also help Tata in improving its market share in the light passenger vehicle segment which has been registering a decline recently.

Tata Motors has every kind of customer from lower middle to upper middle class which comprises of more than half of Indian automobile market.Tata Motors focuses on every customer as it is customer loyal brand it has products like,Tata Indica, Tata Marina which are cars simple but trendy cars for lower income group people.

Tata Indigo is big size cars which are high performance, luxury cars.Tata safari, sumo, Vista is some Muv which is trendy, stylish and powerful.Tata Motors has a future planning to capture whole rural market, because they say no other brand focuses on that huge part of market and it will be an opportunity on our part to satisfy their emerging needs of automotive products.So its very difficult to classify target customer for Tata Motor because they are modifying their products and company and are inventing new products to capture whole automobile market and each and every customer

Positioning

Tata motors has strong hold or can be said a monopolist in Indian market.It has over 60% of market share in Indian commercial vehicle sector and has good reputation of passenger vehicle in Indian markets around 12.35%. But in foreign market the hold of the Tata motors is not as strong as in India. It is emerging as the global brand in world map by its acquisition of brand like land rover & jaguar and merger with fiat to tell the presence of Tata motors at world level . As Tata enters foreign market in year 2000 and hasnt performed that well which they expected from them and only capitalize a small market of 8% till financial year 2008.They also tried to enter luxury car market with land rover & jaguar. They ranked as the 20th largest automobile company in world and TATA MOTORs has been ranked 50th among 100 global brands in the world. Tata motors position also get strengthen after the launch of NANO in 2009 and it will became the largest producer and seller of low cost PVs in India beatin g Maruti Suzuki by the year 2013. India will become the largest seller and producer of the LPVs till 2013 in the world..

Its a competition market The Automotive IndustryTATA MOTORS has about 19 distributors and over 1000 authorized retailer outlet but it is continuously trying to develop a better or correcting by making it better to cut down the complaint about the none availability of auto parts easily, service centers, Original spare parts and so. Therefore they take some steps to correct out the deficiencies of its distributional channel in comparison its competitors.Strengthening the Distribution Channel They are constantly trying to make their distribution channel as widespread as possible and ensure that Tata Genuine Spare Parts are easily available.Distributors and authorized retailers: To identify authorized retailers, look for:Tata Motors Glow Sign Boards displayed outside Retailer authorization certificate with customer code and name of authorized distributor.Retailer Authorization Certificate: Look for Tata Motors glow sign boards prominently displayed outside the authorized retail outletsRetailer Authorization Certificate: Displayed by every Authorized Retailer in his shop bearing his customer code and name of Authorized Distributor.Retailers Directory: To assist their customers in locating authorized retail outlets, they have published the retailers directory, a first of its kind by any vehicle manufacturer in India.

MARKET SHARETata motors have a wide variety of products in different ranges for each section of society. There fore it is difficult to maintain the same share of each sector or for each product. But in case of Tata motors they are maintaining the progressive rate with large variety in each section of its products in CV as well as PV sector.They have over 60% market share in CV sector and 12.66% in PV sector. The market share of Tata in recent past is shown in graphical form with the comparison with its competitive firms in last few financial years.

The tabular formation shows the competitive ratios of Tata with its competitors in PV SECTOR Indian Passenger Vehicle Market . Competitive Scenario :-MARUTI TATA HYUNDAI MAHINDRA TOYOTA HONDA Passenger Cars 52% 17% 19%- 1% 5% 6%Utility Vehicles 2% 18% 1% 42% 21% 1%

BIBLIOGRAPHY & WEBLIOGRAPHY

Marketing Management, The McGraw.Hill company,Rajan Saxena (Third Edition)

competitive Strategy by peter Micheal (second addition).

Business world

The times of india

www.tatamotors.com

www.pearsoned.co.in/pkotler.

http://www.genmills.com/corporate/company/india.aspx