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]

1
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.

2
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.

3
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.

4
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]

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 • 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 industr y 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 licens e 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

6
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 smal l sample size, small sample area
and time constraints.

7
 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.

8
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

9
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.

10
 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 2013, the company’s revenues from its four
manufacturing plants at three locations in India were Rs. 81.64 billion (US $ 34.7 billion). In
2012 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 2013 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.

11
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

12
 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.

13
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.

14
 BOARD OF DIRECTORS

NAME DESIGNATION
Mr N Chandrasekaran Chairman / Chair Person
Mr Nasser Munjee 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 Vehicle

Main 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

15
 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 Carrocera
Main 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 Rover

Main 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.

16
 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.

17
 Tata Nano
Main 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.

18
 Tata Ace
Main 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]

19
 Compressed air car
Main 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

20
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 188,816 crore
(US$34.7billion)2012-13.[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 6600 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.[23]

21
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
[25]
developed with Tata Daewoo They will debut in South Korea, South Africa, the SAARC
[25]
countries and the Middle-East by the end of 2009 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

22
 PRODUCTS

Passenger cars and utility vehicles

Tata Xover

Tata Nano Europa

Tata Starbus Low Floor 1610

23
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

24
 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)

25
• 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)

26
 • 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

27
 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 Shayaras Mistry '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.

28
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:

• Passenger Cars

• Utility Vehicles

• Commercial Vehicles

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

• Tata Indica

• Tata Indigo

• 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,

• Tata Sumo

• Telco Sport

• Telcoline Pickup Vans

29
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,

• Buses

• Small Buses (4 models)

• Big Buses (4 models)

• Trucks

• Light Trucks (5 models)

• Medium/Heavy Trucks (9 models)

• Tippers (3 models)

• Tractors (3 models)

30
 S.W.O.T ANALYSIS

STRENGTHS
New investment by Tata in factories in the US and China saw 2013 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 2010 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

31
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.

32
 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.

33
PORTERS 5 FORCES MODEL
The 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.

34
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:
• Geographic variables
• Demographic variables
• 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
• Tata Motors
• Radio
• Internet
• Newspaper/magazines

• Hoardings

35
 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.

36
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

37
• 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.

Four P's
Elements 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

38
 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:-

39
 • Understandin………………g 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)

Positioning
A 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

40
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)

41
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.

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

42
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.

• 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)

43
 • 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.

• 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

44
• 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 .

45
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

46
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

QUESTIONNARIES:

• The Vehicle that you previously used []

a) Maruti b) Toyota c) Machindra

d) Not used any vehicle e) Some other vehicle

• What made you to buy this vehicle []

a) Model b) Price c) Quality

d) Brand name e) Other benefits

• Are you satisfied about the explanation about the benefits / features/ warranty of the

vehicle and the financial schemes and the delivery procedure at the time of purchase.

[]

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• How is the reception at the time of enquiry by the sales personal []

47
 a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Is it ease of obtaining appointment i.e., are you satisfied with the reception of the

service advisor. []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Are you satisfied with the time taken to open the job card (work order)

[]
a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• How is the attitude of the service personnel []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Are you satisfied with the facilities of the service station like customer waiting room

etc., []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Are the services being attended correctly to the relevant complaint [ ]

a) Delighted b) No

• Are you satisfied with the quality of washing []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Are you satisfied with the delivery made i.e., Is the delivery made in times as per the

conditions desired by you from service station .[ ]

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

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• Are you satisfied with the explanation if job done and bill at the time of delivery [ ]

a) Delighted b) Very satisfied c) satisfied

d) Some what dissatisfied e) Very dissatisfied

• Do you feel labour and spare parts charge reasonable []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

• Are you receiving our service reminders regularly []

a) Yes b) No

• Are you satisfied with the overall performance of the workshop []

a) Delighted b) Very satisfied c) Satisfied

d) Some what dissatisfied e) Very dissatisfied

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