Motors, is one of the largest companies in the Tata
Group, and one of India’s largest business houses. Tata Motors is one of India’s
leading commercial vehicle manufacturer and the one of largest passenger car
Every company has their own practices and strategies but the company
which has effectives practices and strategies is going to get the success in
the market. Now, here we are going to study about some of the practices and
strategies implemented by the TATA MOTORS to sustain and become successful in
the market. TATA products are of many types out of which TATA MOTORS is the
automotive segment in the market. Strategies and ideas can be implemented right
from the start of the inventories to the customer feedback. Every step has to
be carefully followed to achieve the success in the market. Here we study some
of the strategies and practices followed by the TATA MOTORS in various segments
such as product development, environmental friendly activities, branding
strategies, pricing policy, packaging development.
2. ABOUT TATA MOTORS
Tata Motors is one of the
leading automobile manufacturers in the world. Its products include sport
utility vehicles, cars and mini trucks etc .Tata Motors has the highest market
share in the commercial vehicles and also has high demand in passenger vehicles.
Recently it has also acquired English premium car maker Jaguar Land rover which
includes both the Jaguar and Land rover which had the same owner. It is also
the world’s fifth-largest truck and fourth-largest bus manufacturer. Various assembly operations are performed in
Bangladesh, Ukraine and many countries.
Companies started learning
about each other, appreciating the good things and collaborating. Everyone was
talking a common improvement language. Now here we discuss about the some of
the practices and best strategies implemented by the TATA MOTORS to become one
of the leading manufacturers in the automotive industry.
2.1 TATA MOTORS CORPORATE SOCIAL
RESPONSIBILITY (CSR) POLICY FY16-17
TATA MOTORS has undertaker
various CSR activities based on its policies developed by the company. Its main
aim was to provide help to underprivileged and socially backward people. Its
focus was on various fields such as health which includes addressing child malnutrition,
health awareness among females and preventive health services. Employability
was another field which included Professional driving training, motor mechanic
vehicle training and in agriculture allied trades. Scholarships, special
coaching and school infrastructure improvement activites were included in the
education activities. Hence these were the main four fields in which CSR
activites of the company was focussed on and it helped to the thousands of
people across the country. Its aim was to use the 2 percent of the net profits
to these activities. There main aim was to nurture a vibrant culture using its
technological and managerial capabilities for CSR.
3. SWOT ANALYSIS OF TATA
Swot analysis helps to
identify the strength, weakness, oppurtunities and threats which includes the
internal and the external factors.
Motors is one of the most established company in automobile sector in India
2. Tata Motors
has a wide & extensive distribution and service network
market penetration in the taxi & rental segment
service professionals available
of British brands like Jaguar land rover has increased its value.
engineering and R department
of people work with satisfac
diversified product portfolio.
9. It has a
strong brand value in the market.
1. It has
very limited products in the international markets.
Diversification and service issues are there in various places.
products can be introduced in the markets.
2. As brand
value is very high, it can extend to international arena.
pricing of domestic products like Maruthi Suzuki.
Leveraging mergers and acquisitions to acquire newer technology
Motors can boost business by augmenting the distribution and service network in
Increasing fuel costs
Competition from other big automobile giants means reduced market share
for Tata Motors
Competitive products offering same level features at a lesser price
innovations and frugal engineering by competitors
4. TATA MOTORS BEST PRACTICES
TATA Motors has been introduced The Tata Nano as it product development in a
small car range. It is an inexpensive, rear-engine, four-passenger city car and
is aimed primarily at the Indian domestic market. TATA Motors began selling its
“one-lakh car” in March 2009. It was then
and now cheapest car introduced into the market.
A vehicle cannot have a material packaging. Here, packaging refers to an
effective assembly of features. Tata Motors provides
many innovative features to suit the target customers and the product. For example, Tata Safari Dicor has ‘Reverse Guide
System’ which includes a weather-proof camera to help the driver while
reversing the vehicle.
TATA Motors has implemented social welfare provisions for its employees that
have since become the legislative norm. From the perspectives of customers, environment-friendly activities may include a commitment to product quality , fair pricing policies, and so.
TATA Motors provides desks, benches, chairs, tables cupboards, electrical
fittings and educational and sports material to various primary schools in
Singur. The company has also planned similar programs to upgrade school
infrastructure and it has planned to set up a computer laboratory in one of the
Advertising places a crucial role in the Branding of the product. But an even
more important function of advertising is to create an image that consumers
associate with a product, known as the brand image. The brand image goes far
beyond the functional characteristics of the product. The products of Tata
Motors have many special characteristics to them, but when consumers think of
it, they not only think of its features, but they may also associate it with
quality, performance, and class. All of these meanings have been added to the
product by advertising. Consumers frequently buy the product not only for its
functional characteristics but also because they want to be identified with the
image associated with the brand.
Tata Motors has been successful in
creating and maintaining a professional brand image.
Prices have to be on par with the prices
of the competitors. Tata Motors give a relative price advantage as compares to
its competitors. Giving discount every month and special promotion for certain
type of vehicle also one of the strong strategy use by Tata Motors. Discount can
be made from Company’s profit or from dealer’s profit at a certain range.
In the specific case, announcing the vehicle as the least expensive production
car in the world that is “TATA NANO”, Tata aimed for a starting price of one
lakh, or 100,000, rupees. This was approximately US$2000 at the time. As of December 2010, the cheapest Tata Nano costs
The purpose of sales promotion is to supplement and coordinate advertising and
personal selling; Sales promotions are designed to persuade consumers to
purchase immediately by providing special incentives such as cash rebates,
prizes, extra product, or gifts. The Co. conducts intensive sales promotion
during festivals such as festive discounts during Diwali.
Public Relation Practices
Public Relations has to
deal with the policies which are created to maintain the relation with the public through many forms. The company takes
serious measures to maintain good public relations. The company follows
business ethics to ensure that the customer is satisfied and receives good
service whenever and wherever the desire arises.
The various media used for publicity are
T.V, Newspapers, Magazines, Hoardings, and Internet. The dealer conducts
point-of-purchase displays to advertise the products. The publicity did by the company to help the dealer in order to capitalize on the market.
In case of vehicles, dealership method of distribution and sales is generally
adopted. Tata Motors has also adopted
dealership method of distribution of its products. The dealers purchase
products from the Co. at a negotiated price. The MRP is fixed by the Co. and
the dealer gets a profit from these
prices. As the Co. deals in commercial and passenger vehicles, there may be single or distinct dealerships to market its
commercial and passenger vehicles in a town. However, if there is a single
dealership appointed, then the commercial and passenger vehicles are managed
under Commercial Vehicles Dept.
The sales, distribution and billing of
these are looked after by the Co. itself.
are many points available in the country which is nearly 2500. The distribution
and the provision of service has significantly increased during these periods
“Till now, the company has about 170 odd dealers in the country and opening new
dealerships is an ongoing process,” the official said, without disclosing how
many dealerships the company planned to add this year. There are 2 (two) main
policies in order to control the dealer’s
The Company does not allow any alterations to any of the features of the
product. If there is an alteration which affects the performance of the engine,
then the warranty becomes void. However, there may be alterations in the
accessories, if desired by the customer.
are decided by the Co. every month. Any further discounts made from the profits of the
dealer. However, the Co. may compensate the dealer for the discounts allowed to
a certain extent.
Enthused by rave reviews that its Rs 100,000-car Nano got at the auto fair
recently, the country’s largest automobile company Tata Motors is embarking on
a dealership network expansion drive.
Even though TATA MOTORS has a good value in the
market they faced few issues regarding the service offered by them during the
initial stages which was rectified later. The quality teams have helped
the service team to resolve repairs in the most effective manner. And also it
has to offer diverse products to sustain in the market. Further, the company
has worked on the supply side by re-working its logistics management system for
speedy spare parts delivery. It has also has enhanced its distribution
warehouse network with development of a warehousing facilities.
It is really correct that TATA Motors
has been awarded by Balanced Scorecard Collaborative Hall of Fame Award for
having achieved a significant turnaround of its overall
performance because itendeavours in order to maintain its position in
the market as one of the best industrial auto players
in the world.