A presentation on the their passenger vehicles.

Group

History of TATA Motors Limited.Initially called TELCO, Tata Engineering and

Locomotive Company.Tata Motors is a part of the Tata Group.It entered the locomotive market in 1945.In 1954, it tied up with Daimler Benz to enter

the commercial market.It entered the passenger vehicle market in

1991 with Tata Sierra.

Company ProfileTata Motors is currently into a wide variety

of vehicles in various vehicles: Commercial Vehicle Segment (Ace,

Starbus ,Novus etc.)Passenger and Utility Segment (Nano, Indigo,

Aria, Sumo etc.)Military Vehicles (LSV, Troop Carrier).Public Vehicle (Buses, Mini Bus).

Total Revenue (2012-2013) – Rs. 189529 (crores).Total Profit (2012-2013) – Rs. 9893 (crores).Listed on BSE and NYSE.Car’s produced (India & Globally) – 606,963.Subsidiaries: Jaguar, Land Rover, Hispano,

DaewooGlobal Operations: UK, Thailand, South Korea and

Spain.Plants in: Jamshedpur, Pune, Patnagar, Lucknow,

Dharwad, Sanand, Argentina.

Products:Tata Nano Tata IndicaTata Indigo ManzaTata AriaTata Safari Storme Tata AceTata Sumo Grande

Buying Process and VariablesThere are various variables that affect the

consumer whilst buying a particular product, these are:

Influence by the seller.Perception.Family and Group Influence.LifestylePost Purchase services.

Influence by the sellerVarious offers to attract buyers during festive

seasons.Ad’s with famous brand ambassadors to

promote it.Free insurance schemes, AMC discounts.Breakdown support.Good finance link-ups and options as per the

customers needs.

PerceptionTata Motors is clearly trying to step up it's game

by a makeover of all Tata cars. Karl Slym has identified three critical factors in

this regard. -Poor quality -Lack of development of existing models. -Consumer perception of Tata cars being good

only as taxis

Low quality products is undoubtedly reducing sales of Tata cars.

Lack of quality was a result of more than one supplier of car parts.

Family and Group Influence Indian middle class can be divided into 3 different economic categories namely, Aspirers, Seekers, Strivers.

Aspirers (Low Income Class) - They earn between Rs. 90,000 - Rs 200,000 per year. Farmers, Small shop owners.Seekers (Middle Class)- They earn between Rs 200,000 - Rs 500,000 per year. University/College freshers to mid level government and business executives.

Strivers (Upper Middle Class) - They earn between Rs 500,000 - Rs 1,000,000 per year. senior government and business officials to managers to skilled professionals.

TATA motors aims majorly on Aspires and Seekers.

Also brands that identify and support family values are accepted and they perform well in the Indian market.

TATA branding aims exactly on Indian families and values.

LifestyleTata Motors has effectively catered to

different people with different lifestyles.The efficient R&D always came up with the

right kind of cars for the right segment of people.

Matched up competitors with Hatchbacks, Sedans as well as SUV’s.

Car’s varying from 1.24 lacs to 15 lacs.

Post Purchase ServicesEasily and readily available spare parts.Large network of workshops (Dealers

workshops and Tata workshops).Good feedback system and the desire to give

better services.Scheduled maintenance call reminders.Dedicated GRS team for all clients.

(commercial and passenger vehicle segment.

Market SegmentationThe following aspects of market

segmentation have been included in this presentation:

Demographic.Psychographic.Socio-economics.Behavioural.

Demographic.Age of end user – Different age/generations

would prefer a different car.The Family size plays a big role on the

selection of a car, for a nuclear family, a Tata India/Nano can suit the need whilst for a big family, a Tata Sumo/Aria can be used.

Tata Motors also plays a significant roll for portraying their cars to different occupation based people. (For eg. Tata Manza (executive finish) for the executives, whilst the Tata Nano for students and the youth.

Market Tata Product Tata subsidiary Product

Low Income class Nano, Indica

Low Middle Income Class

Indica, Indigo

Upper Middle Income Class

Manza, Sumo

Upper Income Class Aria, Safari Grande Jaguar, Land Rover

GeographicNationsSize of populationClimateRoads

PsychographicActivitiesInterestAttitudes

BehavioralisticBenefitsUsageBrand LoyaltyReadiness to buy

StatisticsTata Motor’s segment-wise market share.

Market Share in Utility Vehicles

TML’s passenger car market share fell to 8.9% for the four months ended July 2013, from 11.8% in the financial year ended 31 March.

SWOT AnalysisStrengths:One of the most established company in the

automobile sector.Wide and extensive distribution and service

network.Highly diversified product and portfolio.Dedicated engineering and R&D department.Highly diversified product and portfolio.Dedicated engineering and diversified

environment

Limited international presence.Faces issues with alleged quality and

durability issues.Does not have a significant foothold in the

luxury car segment in the Indian market.A follower and not a leader in the market

(besides nano).

Weaknesses:

Opportunities:

Leveraging mergers and acquisitions to acquire newer technology.

Leveraging customer engagement experience to acquire new customers.

Increasing per capita income and purchasing capability of potential customer base.

Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats:

Competitors from other automobile companies.

Safety provisions in cars.No R&D in alternate energy cars.

Slogans by TATA MotorsMore Dreams per Car.Reclaim your Life – TATA SafariMore than meets the Eyes – TATA GrandeKhushiyon ki Chabi – TATA Nano