The Study of Distribution Channels in Tata Motors

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Tata Motors is a part of the Tata Group manages its share-holding

through Tata Sons. The company was established in 1945 as a


locomotive manufacturing unit and later expanded its operations to
commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz AG of Germany. Despite the success of its commercial
vehicles, Tata realized his company had to diversify and he began to
look at other products. Based on consumer demand, he decided that
building a small car would be the most practical new venture. So in 1998
it launched Tata Indica, India's first fully indigenous passenger car.
Designed to be inexpensive and simple to build and maintain, the Indica
became a hit in the Indian market. It was also exported to Europe,
especially the UK and Italy.

Tata Motors Ltd (NSE: TATAMOTORS, BSE: 500570, NYSE: TTM)


is a multinational corporation headquartered in Mumbai, India. Part of
the Tata Group, it was formerly known as TELCO (TATA Engineering
and Locomotive Company).

Tata Motors is India’s largest automobile company, with consolidated


revenues of USD 20 billion in 2009-10. It is the leader in commercial
vehicles and among the top three in passenger vehicles. Tata Motors has
products in the compact, midsize car and utility vehicle segments. The
company is the world's fourth largest truck manufacturer, the world's
second largest bus manufacturer, and employs 24,000 workers. Since
first rolled out in 1954, Tata Motors has produced and sold over 4
million vehicles in India.

Tata Motors has auto manufacturing and assembly plants in Jamshedpur,


Pantnagar, Lucknow, Ahmedabad, Sanand, Dharwad and Pune in India,
as well as in Argentina, South Africa and Thailand.
The Tata group comprises over 90 operating companies in seven
business sectors: communications and information technology,
engineering, materials, services, energy, consumer products and
chemicals. The group has operations in more than 80 countries across
six continents, and its companies export products and services to 85
countries.
The total revenue of Tata companies, taken together, was $67.4 billion
(around Rs319,534 crore) in 2009-10, with 57 per cent of this coming
from business outside India. Tata companies employ around 395,000
people worldwide. The Tata name has been respected in India for 140
years for its adherence to strong values and business ethics.
Every Tata company or enterprise operates independently. Each of these
companies has its own board of directors and shareholders, to whom it is
answerable. There are 28 publicly listed Tata enterprises and they have a
combined market capitalisation of about $99.54 billion (as on March 3,
2011), and a shareholder base of 3.5 million. The major Tata companies
are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata
Power, Tata Chemicals, Tata Global Beverages, Indian Hotels and Tata
Communications.
Tata Steel became the tenth-largest steel maker in the world after it
acquired Corus, later renamed Tata Steel Europe. Tata Motors is among
the top five commercial vehicle manufacturers in the world and has
recently acquired Jaguar and Land Rover. TCS is a leading global
software company, with delivery centres in the US, UK, Hungary,
Brazil, Uruguay and China, besides India. Tata Global Beverages is the
second-largest player in tea in the world. Tata Chemicals is the world’s
second largest manufacturer of soda ash and Tata Communications is
one of the world’s largest wholesale voice carriers.
In tandem with the increasing international footprint of Tata companies,
the Tata brand is also gaining international recognition. Brand Finance, a
UK-based consultancy firm, recently valued the Tata brand at $11.22
billion and ranked it 65th among the world's Top 100 brands.
BusinessWeek magazine ranked Tata 17th among the '50 Most Innovative
Companies' list and the Reputation Institute, USA, in 2009 rated it 11th
on its list of world's most reputable companies.
Founded by Jamsetji Tata in 1868, Tata’s early years were inspired by
the spirit of nationalism. It pioneered several industries of national
importance in India: steel, power, hospitality and airlines. In more recent
times, its pioneering spirit has been showcased by companies such as
TCS, India’s first software company, and Tata Motors, which made
India’s first indigenously developed car, the Indica, in 1998 and recently
unveiled the world’s lowest-cost car, the Tata Nano.
Tata companies have always believed in returning wealth to the society
they serve. Two-thirds of the equity of Tata Sons, the Tata promoter
company, is held by philanthropic trusts that have created national
institutions for science and technology, medical research, social studies
and the performing arts. The trusts also provide aid and assistance to
non-government organisations working in the areas of education,
healthcare and livelihoods. Tata companies also extend social welfare
activities to communities around their industrial units. The combined
development-related expenditure of the trusts and the companies
amounts to around 4 per cent of the net profits of all the Tata companies
taken together.
Going forward, Tata is focusing on new technologies and innovation to
drive its business in India and internationally. The Nano car is one
example, as is the Eka supercomputer (developed by another Tata
company), which in 2008 was ranked the world’s fourth fastest.
Anchored in India and wedded to traditional values and strong ethics,
Tata companies are building multinational businesses that will achieve
growth through excellence and innovation, while balancing the interests
of shareholders, employees and civil society
The study of Distribution Channels in Tata Motors

In the field of marketing channels of distribution indicates routes

or pathways through which goods & services flow, or move producers to

consumers. We can formally define the distribution channels as the set

of inter department marketing institutions participating in the

marketing activities involved in the movement or the flow of goods

and services from the primary producers to the ultimate consumer.

Of the 4 elements of marketing mix that is product, price,

promotion and distribution i.e the channels of distribution is the most

important element. The success and failure of the firm depends largely

upon the efficiency of distribution.

We can say that a channels of distribution may by defined as an

organized work of agencies and institutions which is combination,

performs all of the activities required to link producers with users, and

users with producers in order to accomplish the marketing task’

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