Tata Motors

TATA MOTORS I. INTRODUCTION Tata Group is an Indian multinational go with headquartered MUMBAI, MAHARASHTRA, INDIA. Tata root peckiness is spread across 7 sectors their briny sector existence steels. Their empire is spread across 6 continents and has its presence in 80 nations. The combined trade capitalization of all the 31 listed Tata companies was $89. 88 star trillion million as of March 2012. Tata group tolerates its major r level offue from overseas commercializedise contributing 58%. Tata Motors Limited is an Indian multinational manufacturing union. It is a subsidiary company of the Tata group.Its produces include passenger autos, motortrucks, vans, coaches, buses and military vehicles. It is the globes 18th largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. In Forbes fortune five hundred companies Tata motors occupies 314th position. With the launch of Tata sierra in the twelvemon th in 1991 Tata motors move ined the passenger political machine division. Tata Motors acquired the southern Korean truck manufacturer Daewoo technical Vehicles Company in 2004 and the British premium carmaker Jaguar prop Rover in 2008.Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plants inTur depict, Indonesia and Eastern Europe. Tata Motors principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano. Tata Motors has consolidated revenue of 32. 5 billion USD in the financial year 2011-2012. Tata motors gestate an employee base of more(prenominal) 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. trick up ANALYSIS OF TATA MOTORS LIMITEDSTRENGTHS 1) Strong domestic presence Tata has a strong presence in Indian foodstuff and it is a key manufacturer of commercialized vehic les. It is the railing producer in commercial vehicles in all segment and they are 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 year 2010-2011. 2) Tata motors non completely have the strategy for expansion and acquisitions but also they have the intensifier steering development program in order to develop the leaders of tomorrow. ) Taste and preference of the consumers in local regions is always taken give fretfulness of in Tata motors. 4) Tata motors have a long list of product portfolios. It has passenger cars, commercial vehicles, trucks and coaches WEAKNESS 1) Tata motors cars are considered for economy class people and not in luxury car segment. So the company lacks its value in luxury car segment. 2) Though Tata cars are present in intercontinental it has created major customer base only in India and its nearby countries alike(p) Bangladesh, srilanka, Pakistan. 3) The consumer base is limited to certain areas and certain people. ) Tata cars are not by-line the safety standards. Their design and the body metal used leads to this types of public image. This is a major concern for Tata. Their major example is their Tata Nano. 5) Tata cars are not for the jr. multiplication consumers. Tata cars design is not been attracted by the people of the younger generation of people. 6) Re hitch on investment in Tata motors shares is very low. 7) Even though they have bought luxury car manufacturers Jaguar and Land rover Tata has not made its strong presence in luxury car segment. OPPORTUNITIES ) highlife carmaker jaguar and land rover has added a greater value to its product portfolio. 2) Tata has a major support from the Indian government. 3) High market demand for the passenger car segment with low price. 4) The world is adapt up for the greener revolution and there is a huge market for leap out fuel vehicles. THREATS 1) Tata cars safety standards can lay down the public practice on their varied portfolio of cars. 2) Other car companies are there for more than 40 years so Tata should learn the production and quality from opposite 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 cost producer sustainability and environmental causes would be a greater concern. 5) Rising cost in the global economy for the steel and raw materials for the production of car can change magnitude the cost of production of car. Most of the cars manufactured by Tata run on Diesel and cost of the Diesel is also increasing around the world and also in home country. GROWTH STRATEGYTata motors growth strategy is to have a position, which is not easily taken up by former(a) competitors in the domestic market, and to expand its market to otherwise countries by 1) leverage in house capabilities 2) Through strategic acquisitio ns and mergers to have a added vantage of their capabilities. In the year 1984 Tata Motors launched Light Commercial Vehicle. In the Year 1996 SUV (sierra) was launched by Tata. In the year 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 Fiat, 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 venture With Brazil based Marcopolo for manufacturing of Buses. Targeting mass rapid cargo ships this joint venture in the midst of Tata and Marcopolo manufactures and assembles fully built buses technical receive how support from Tata and passage 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 mo tors 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 behind the acquisition of Daewoo was to reduce the too frequently exposure in the domestic market and to expand Internationally. The acquisition of Tata and Daewoo lead to the 2nd largest manufacturer of Trucks in South Korea. TATA- HISPANO In 2005 Tata motors acquired 21% of put on the line 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 sold JLR to Tata motors it JLR became the wholly owned Subsidiary of Tata motors. Thus by acquiring JLR Tata motors made its foot patsy in the luxury car segment. It was also one of the greatest acquisitions. It change magnitude the diversity of market s egments and their product portfolio. It created a great opportunity for Tata to enter into to Luxury segment with the worlds iconic brand.MARKETING MIX OF TATA MOTORS 1) carrefour Tata has a wide variety of vehicles placed in different segments. It has vehicles for commercial purposes, Passenger vehicles and in defense sectors also. They have the product placement in all the segments. 2) PRICE Tata motorcars are generally affordable. Tata motors are targeting the middle-income class of people. Their cars are generally 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 priced high from other competitors and it should not be priced too low. 3) publicity a) Personal Selling Advertising and after sales service is the main promotion strategy of Tata Motors. The basic aspec t of advertising is to how you tell the pith and what is the medium to tell message. Personal selling is more of in Tata Motors. With the customers who are in the intention to make a sale Tata motors dealers do a personal talk with the customers. b) Trade Fairs and ExhibitionTrade fairs and Exhibitions can pull ahead their rude(a) concepts and they can introduce their new vehicles. This type of fairs will get a worldwide attention and recognition for their new models. Auto expo will be a meeting for both the consumers and for the trade. This will step-up the awareness among the consumers. c) Sponsorship It is that Tata motors will be associated with some sports events or events. This will dish the Brand to get recognition among the persons who is associated with those events. Tata motors are sponsoring a football jeopardize in Spain. d) AdvertisementsTo create more awareness among the consumers Television Advertisements is also used. tuner advertisements are done to create aw areness among the rural consumers. For detailed nurture print media is also concentrated. DISTRIBUTION OF TATA MOTORS DMS Technology is used for efficient coordination between the dealers who are spread worldwide. Apart from distribution networks it has also distributed its manufacturing units in unhomogeneous countries apart from India. Tata motors have assembly units in Brazil, Bangladesh, Thailand, and South Africa. Supply bowed stringed instrument excellence is one of the major success factors for Tata motors.Tata motors distribution and logistics part of the commerce is outsourced to Tata motors Distribution Company limited (TDCL) that is the wholly owned subsidiary of Tata motors to slip away their distribution costs minimum. Through this Tata motors is reducing at least 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 rela tionship management program and dealer management system bound the suppliers and dealers. Time to time reviews of these programs ensures the program work effectively.Importance is devoted for supplier coverage and transaction within the organization. FINANACE STRATEGIES OF TATA MOTORS Financial loss in the year 2001 was really a shock for the Tata Motors. It was caused by the reduce in demand for their Truck segment and heavy Investment for their entry into passenger car segment caused them heavy loss for Tata Motors. It caused a 110 million $ loss to the Tata motors. So in 2001 Tata motors decided a 3- form recovery butt against each phase is for 2 years totally the process is for 6 years. PHASE 1 To stop the bleedingPHASE 2 To consolidate the position in the Indian market. PHASE 3 To operate Internationally. For phase 1 the key objective was to reduce the Break-even 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. just today 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 reduced the Break- even point to one third 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 agonistic 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 improving 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 capability and where they can earn more respectable 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 increased by 12% Domestic market Commercial and passenger market = 67,453 as of disdainful 2012 59,874 as of august 2011 It has increased by 4% http//www. tatamotors. com/media/press-releases. php? id=783