Tata Motors

TATA MOTORS I. INTRODUCTION Tata Group is an Indian transnational partnership headquartered MUMBAI, MAHARASHTRA, INDIA. Tata convention agate line is openinging across 7 sectors their chief(prenominal) sector being leaf blades. Their empire is spread across 6 continents and has its battlefront in 80 nations. The combined foodstuff capitalization of all in all the 31 listed Tata companies was $89. 88 zillion as of March 2012. Tata group take a shits its major(ip)(ip) r steadyue from overseas foodstuff impart 58%. Tata Motors Limited is an Indian multinational manufacturing telephoner. It is a subsidiary of the Tata group.Its harvest-homes include rider motorcars, trucks, vans, coaches, buses and military fomites. It is the foundations 18th largest motor vehicle manufacturing company, fourth-largest truck shaper and second-largest bus manufacturer by volume. In Forbes fortune calciferol companies Tata motors occupies 314th position. With the launch of Tata sierra in the course of study in 1991 Tata motors entered the rider car member. Tata Motors acquired the southward Korean truck manufacturer Daewoo mer corporationtile Vehicles Company in 2004 and the British subsidy carmaker Jaguar Land wanderer in 2008.Tata Motors has vehicle manufacturing operations in India, the United Kingdom, randomness Korea, Thailand, Spain and sulphur Africa. It plans to establish plants inTur name, Indonesia and Eastern Europe. Tata Motors champion subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano. Tata Motors has amalgamate revenue of 32. 5 billion USD in the financial social class 2011-2012. Tata motors turn over an employee piteously of to a greater extent than 55,000 employees. Tata motor is the first Indian company from the engineering sector to be listed in the New York stock exchange. II. jampack ANALYSIS OF TATA MOTORS LIMITEDSTRENGTHS 1) Strong domestic charge Tata has a strong presence in Indian commercialiseplace place and it is a key manufacturer of commercial-grade vehicles. It is the cuting manufacturing business in commercial vehicles in all segment and they atomic number 18 among the top 3 producers in passenger vehicles market. Tata motor company is Indias largest company with the revenue of 1,233,133 crore in the grade 2010-2011. 2) Tata motors non except have the strategy for expansion and acquisitions but withal they have the intensive management using schedule in order to spring up the leaders of tomorrow. ) Taste and preference of the consumers in local regions is al right smarts taken consider of in Tata motors. 4) Tata motors have a farseeing list of ware portfolios. It has passenger cars, commercial vehicles, trucks and coaches WEAKNESS 1) Tata motors cars be considered for economy manikin people and not in luxuriousness car segment. So the company lacks its orient in highlife car segment. 2) though Tata cars argon present in cosmopolitan it has created maj or customer demonstrate only in India and its nearby countries like Bangladesh, srilanka, Pakistan. 3) The consumer base is limited to certain areas and certain people. ) Tata cars are not following the safety standards. Their physique and the body metal use leads to this types of universe image. This is a major concern for Tata. Their major example is their Tata Nano. 5) Tata cars are not for the junior generation consumers. Tata cars externalise is not been attracted by the people of the younger generation of people. 6) diminish on investment in Tata motors shares is in truth low. 7) Even though they have bought luxury car manufacturers Jaguar and Land wanderer Tata has not made its strong presence in luxury car segment. OPPORTUNITIES ) high life carmaker jaguar and land bird of passage has added a greater advantage to its crossroad portfolio. 2) Tata has a major support from the Indian government. 3) High market choose for the passenger car segment with low price. 4) Th e orbit is geared up for the greener revolution and thither is a huge market for derail fuel vehicles. THREATS 1) Tata cars safety standards discharge fructify down the public trust on their varied portfolio of cars. 2) Other car companies are there for more than 40 old age so Tata should learn the production and gauge from other car manufacturing vehicles. ) The economic conditions of the world countries. The downfall of the economic conditions and the constant fluctuations in the currency rates 4) For a low toll producer sustainability and environmental causes would be a greater concern. 5) Rising hail in the global economy for the steel and raw materials for the production of car can increase the cost of production of car. nigh of the cars manufactured by Tata run on Diesel and cost of the Diesel is alike change magnitude around the world and as well in home country. GROWTH STRATEGYTata motors ontogenesis strategy is to have a position, which is not easily taken up by other competitors in the domestic market, and to fill out its market to other countries by 1) supplement in house capabilities 2) Through strategical acquisitions and mergers to have a added advantage of their capabilities. In the stratum 1984 Tata Motors launched Light Commercial Vehicle. In the Year 1996 SUV (sierra) was launched by Tata. In the course 1998 Tata launched its First passenger car. In the year 2004 Tata acquired Daewoo a Korean company. In the year 2005 Tata Acquired in Hispano, SpainFormed an industrial JV with lodge, JV in India with Marco polo of Brazil, JV in Thailand with Thonburi In the year 2007. Acquisition of JLR took place in the year 2008. ACQUISITIONS AND JOINT VENTURES TATA MOTORS AND MORCOPOLO Tata formed a 5149 Joint move With Brazil based Marcopolo for manufacturing of Buses. Targeting mass speedy transportation this joint chance mingled with Tata and Marcopolo manufactures and assembles fully construct buses technical discern how suppo rt from Tata and member and Body design from Marcopolo. TATA AND FIAT Tata formed a 5050 JV with Fiat.With that Joint venture fiat supplied their Engines to Tata cars and Tata motors took care of selling Fiat cars through their dealers. ACQUISITIONS TATA DAEWOO Tata motors acquired Daewoo commercial vehicle of South Korea in the year 2004. The reason lowlife the acquisition of Daewoo was to reduce the too frequently expoundingsure in the domestic market and to expand Internationally. The acquisition of Tata and Daewoo lead to the second largest manufacturer of Trucks in South Korea. TATA- HISPANO In 2005 Tata motors acquired 21% of stakes in Hispano which lead to an opportunity in fully built bus segment.Hispano is European bus manufacturer. In 2009 it acquired the remaining 79% of the stakes by making Hispano their fully owned subsidiary. jaguar LAND ROVER IN the year 2008 when the ford motor company exchange JLR to Tata motors it JLR became the wholly owned Subsidiary of T ata motors. consequently by acquiring JLR Tata motors made its home marking in the luxury car segment. It was alike one of the greatest acquisitions. It increase the diversity of market segments and their product portfolio. It created a great opportunity for Tata to enter into to prodigality segment with the worlds iconic brand.MARKETING MIX OF TATA MOTORS 1) PRODUCT Tata has a vast variety of vehicles placed in various segments. It has vehicles for commercial purposes, Passenger vehicles and in defense reaction sectors also. They have the product placement in all the segments. 2) PRICE Tata motorcars are loosely affordable. Tata motors are targeting the middle-income class of people. Their cars are broadly affordable and their service cost is also affordable when compared to the other car manufactures in India. They also manufacture the worlds cheapest car (Tata Nano).They also target the High-income group of people with the acquisition of JLR. The vehicle should not be pr iced high from other competitors and it should not be priced too low. 3) PROMOTION a) ain Selling Advertising and after gross gross revenue service is the main promotion strategy of Tata Motors. The basic aspect of advertising is to how you prove the message and what is the medium to tell message. person-to-person selling is more of in Tata Motors. With the customers who are in the intention to make a sale Tata motors dealers do a personalized talk with the customers. b) conduct Fairs and ExhibitionTrade fairs and Exhibitions can promote their new concepts and they can introduce their new vehicles. This type of fairs exit get a worldwide forethought and recognition for their new models. Auto expo will be a clash for both the consumers and for the trade. This will increase the sentience among the consumers. c) Sponsorship It is that Tata motors will be associated with some sports events or events. This will help the Brand to get recognition among the persons who is associat ed with those events. Tata motors are sponsoring a football game in Spain. d) AdvertisementsTo create more sensory faculty among the consumers Television Advertisements is also used. communicate advertisements are done to create awareness among the rural consumers. For detailed information print media is also keep downd. DISTRIBUTION OF TATA MOTORS DMS Technology is used for efficient coordination between the dealers who are spread worldwide. Apart from distribution net clears it has also distributed its manufacturing units in various countries apart from India. Tata motors have assembly units in Brazil, Bangladesh, Thailand, and South Africa. Supply string excellence is one of the major victor factors for Tata motors.Tata motors distribution and logistics part of the business is outsourced to Tata motors dispersal Company limited (TDCL) that is the wholly owned subsidiary of Tata motors to keep their distribution cost minimum. Through this Tata motors is reducing at least(pr enominal) 1% of their distribution and they can concentrate on their core business. TDCL delivers the right product in right time and in right place, which in turn offered flexibility for Tata Motors. Supplier relationship management program and dealer management system terminus ad quem the suppliers and dealers. Time to time reviews of these programs ensures the program work effectively.Importance is given for supplier coverage and relations within the organization. FINANACE STRATEGIES OF TATA MOTORS Financial loss in the year 2001 was really a stripe for the Tata Motors. It was caused by the reduce in demand for their Truck segment and heavy investment funds for their entry into passenger car segment caused them heavy loss for Tata Motors. It caused a cx million $ loss to the Tata motors. So in 2001 Tata motors decided a 3-phase recovery process each phase is for 2 geezerhood totally the process is for 6 years. figure 1 To stop the bleeding flower 2 To consolidate the posit ion in the Indian market. PHASE 3 To operate Internationally. For phase 1 the key objective was to reduce the Break-even decimal point and to move into market pricing which was the technique of cost reduction. Benchmarking its rivals is also a cost reduction technique. E- sourcing is new to India when Tata went into it. But straight off Tata is the largest company using e- sourcing and it is leading in the automobile industry. E- sourcing is a faster way to conducting Tenders in online. E- sourcing trim down the Break- even point to one deuce-ace from two third of their utilization of capacity.The company would be even more profitable when the size is reduced to even 60%. This ensured the bleeding of the company is stopped. For phase 2 to make the product more competitive in the market they improvised in the quality of the product and new product was introduced in the market they would be required by the market for another three to five years. By tightening the credit norms and by astir(p) the liquidity and by new sales planning process and by increasing the profitability of dealers they can strengthen their market place.For phase 3 Tata motors started to identify the international market where there is more electromotive force and where they can earn more skillful market share. Tata motors sales (Including Exports) Commercial and passenger vehicles = 71,826 as of august 2012 From the year 2011 to 2012 it has increase by 12% Domestic market Commercial and passenger market = 67,453 as of August 2012 59,874 as of august 2011 It has increase by 4% http//www. tatamotors. com/media/press-releases. php? id=783