Presented By:

Anand Jha

Company Profile• Founded: 1945

• Founder: JRD Tata

• Head Quarters: Mumbai, India

• Key People: Ratan Tata, Chairman,

Cyrus Pallonji Mistry, Chairman

Chandrasekaran Ramakrishnan , President & Chief Financial Officer

•Parent: Tata Group•Products: Automobiles and engines•Revenue: $32.23 billion (FY 2012-13)•Net Profit:334.52 crores

•It has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanard India and as well as Argentina, United Kingdom, South Africa, Thailand

Malaysia*Thailand

Bangladesh *Nepal, Sri Lanka

Kenya*

Russia*Ukraine* U.K.

Italy

Senegal

Afghanistan Uzbekistan

Brazil

South Africa*

Egypt

Saudi Arabia Iraq, Iran

China South Korea*

LATAM

West Africa

North Africa

West Europe

Central Asia East Asia

South Asia

South East Asia West Asia

East Africa South Africa

* Assembly Operations also

OTHER COLLABORATIONS/M&A & JVs• Tata Daewoo Commercial Vehicle

• Hispano in Spain & Marcopolo In Brazil• JV with Jardine Matheson for

ConcordeMotors• Technology Tie Ups at Spain,Italy

Global Footprint

3

SWOT analysis

• Strengths Well-known brand with

good reputation Huge employee base. Dedicated engineering

and R&D department

•Opportunities Increasing per capita income and purchasing capability of potential customer baseMergers and acquisitions to acquire newer technology Augmenting the distribution and service network in various countries

•Weakness Limited international presence Sometimes faces alleged quality and durability issuesNot much customer engagement programs and activities

•Threats Increasing fuel costsCompetition from other big automobile giantsProduct innovations and frugal engineering by competitorsRising cost of manufacturing

Polycentric Approach

• Tata Motors gives importance to every country’s domestic market, as there is a belief in uniqueness of every market and its need to be addressed in an individual way.

• It operates either by wholly owned subsidiaries or through marketing subsidiaries, separately in each country.

• It produces high quality products. It concentrates its attention on foreign markets which have similar consumer needs and conditions similar to domestic market.

Segmentation

• Geographic• Demographic

i. Age : Any Body above age 18

ii. Income : Available in all ranges

iii. Occupation : All

• Psychographici. Personality : Available in different segment.

• BehavioralI. Benefit : Quality & style

II. Users : Potential Users & First Time Users

III.Readiness Stage: Those who are aware, informed, interested and are intended to buy.

Targeting

• Acquired Daewoo (2004)– Commercial Vehicle Company,– South Korea’s second largest truck maker, for 102 million

dollars.

• Acquired Hispano Carrocera (2005)– Bus manufacturing Spain-based company, acquired 21 Percent

of 12 million Euro.– Acquired full ownership in 2009

• Tata paid Ford Motor Company 2.3 billion for Jaguar and Land Rover companies – It allows Tata to enter into the luxury car market– To enter into the very competitive and highly desirable mature

markets in Europe and in future hopes of securing market segments in the United States.

Continued..

• Bangladesh car market- launched the Manza and Vista hatchback model.

• China- Sold approximately 26,000 units making it 3rd largest market for Jaguar and Land Rover.

• South Africa- Opened assembly plant for targeting the operations and presence of Tata group in South Africa.

• Tata Electric Car- Planning for launch in North America

• Tata and Samsung deal in for car infotainment systems targeting Indian customers.

• Sri-Lanka & Malaysia for installing sales process system and face to face customer meets

Positioning

• Passenger cars.

• Utility vehicles.

• Commercial vehicles.

• Passenger buses.

• Land Rover and Jaguar for Elite Group.

• TATA Nano for middle class people.

• Chipset car developer in the world.

• Highest Seller of Trucks in India.

• TATA Hispano High facility Buses.

Competitive Analysis

Threats of New Entrants

Factors Tata Motors Advantages New Entrance Threats

Entry Cost Yes Low

Retaliation by TATA in case of Competition

Yes, Because of large resources available with TATA

Low

Experience High Low

Other Cost Advantage Yes Low

Buyer Bargaining Power

Factors Tata Motors Advantages Buyer Bargaining Power

Differentiation Price , Durability , Brand equity Low

Concentration Large number of consumers Low

Profitability Easy availability of loans Low

Quality Best Low

Supplier Bargaining Power

Factors Tata Motors Advantages Supplier Bargaining Power

Concentration High Low

Switching Costs High Low

Number of Suppliers High Low

Ability to substitute High Low

Threats of Substitute Product

Factors TATA Motors Advantages Substitute Threats

Availability Cars are available in all ranges High

Performance High High

Buyers willingness High High

Quality of Substitute High Quality High

Competitive Rivalry

Factors TATA Motors Advantages Competitive Rivalry

Brand Image High High

Switching Cost Low High

Differentiation High High

Industry Concentration High High