Contemporary Marketing Strategies for Tata Motors: SWOT Analysis, Competitor Analysis, and Budget Planning

This presentation discusses the contemporary marketing strategies for Tata Motors, including SWOT analysis, competitor analysis, and budget planning. It also includes a situational analysis of Tata Motors, target market for Gen X model, and marketing mix strategy.

Contemporary
Marketing
TATA MOTORS

Introduction of TATA MOTORS
 One of the India largest automobile company with having 81,090 employees
world-wide.
 Serving in 175 countries with a worldwide network comprising over 6,600 touch
points.
 The company headquarter is situated in Mumbai, India.
 The major products manufactured by Tata motors include passengers’ cars,
vans, trucks, sports cars and military vehicles.
 In their last fiscal year, the estimated revenue they have earned was 45.2 billion
U.S. dollars.

SITUATIONAL ANALYSIS of TATA
MOTORS
 Political Forces – Tata motors need to pay close attention to all
the political factors in the respective region.
 For example, In 2011, they had shifted their manufacturing plant
from Singur to Sanand as due to the opposition of the political
part related to agricultural land.
 Economic Factors – Currently, Tata motors is in growth phase of
their PLC. They are trying to expand all the countries over the
globe with the help of joint venture and takeovers.

 For instance, if the aluminium price requires making engine blocks
go up in Kenya, the company has the option to acquire aluminium
from other suppliers in Asia or Europe who they would normally get
from for production in Russia or Ukraine.
 Social Forces – From a long time, Tata motors is running their
business while considering ethical standards. However, they need
to improve their product positioning and understand the various
social aspects of the different markets.
SITUATIONAL ANALYSIS of TATA
MOTORS (CONTINUE)

 For instance, They failed to introduce Tata Nano cars in Italian
markets as the Italian citizens tend to drive larger and fancy cars.
 Technological Forces - Tata Motors are shifting from staff
accumulation model to delivery based with the signed agreement
with EngageNext iSourcing as this will fasten the procedure of
development and advancement at the company
SITUATIONAL ANALYSIS of TATA
MOTORS (CONTINUE)

Competitors Analysis
 In India, one of the biggest competitors of Tata motors is Maruti
Suzuki due to the largest market share.
 Other competitors are – Hyundai, Toyota, Ford, Renault and
Honda.
 Automobile industry in itself is a differentiated oligopoly market,
however, one of the cars produced by Tata Motors i.e. Tata Nano
is enjoyed monopoly in the world market due to the price which
starts from Rs 1,34,000 (Indian Currency) in respect with base
model.

Swot Analysis of Tata Motors
Strengths Weakness
• Leader in commercial Portfolio.
• Competitive resources for research and
development.
• The division relating to Jaguar Land Rover is
doing very well.
• Their major plans and procedures are
restricted towards India only.
• Employee productivity is low due to low
revenue per employee.
• Failure of Tata Indica and Nano keeping the
trust away from customers.
Opportunities Threats
• Expand to other countries with the help of
organic and inorganic routes.
• Electric car segment.
• Extended E-commerce market and Digital
Medium.
• Rise in competition from global
manufacturers.
• Environment policies in every country to curb
pollution.

Objective of the Plan
 Short- Term –
 Sell 2,000 unites within 30 days of the product lines.
 With every quarter, there should be minimum 5%growth.
 After attaining their initial target of 2000 units, they need to open various service centres across
several locations.
 Long- Term –
 To gain market share of 20% by 2018.
 Increase the market share of company by selling at least 75,000 units.
 Deal with the superior quality in respect with estimated cost budget of the product Gen X Nano.

Target Market of Gen X model
 Middle class professionals with income level between $35000 to
$65000 CAD annually.
 Secondary, target include individuals with the Youth and Senior
Citizens.
 To those individuals, who prefer to buy second hand cars due to
less budgets.

 Product – Gen X Nano, feature rich passenger vehicle (PV), equipped
with latest technology and design manufacturing. Having mono-volume
design and will be available in seven colours - Royal Gold, Dazzle Blue,
Damson Purple, Pearl White, Meteor Silver, Sangria Red and Persian
Rose.
 Price - Pricing strategy would be market penetration pricing and
price to be set between $8000 CAD and $10,000 CAD dollars with a
payment option like monthly instalment.
Marketing Mix Strategy

Marketing Mix Strategy
(Continue)
 Place - Toronto area which is a major city in Ontario Canada. This place
is also classed as the biggest city area in the province with a population
of 6,055.7 (thousands) people as of 2014 and thus have large
opportunities for corporate businesses. The sale needs to be maintained
by the Tata Motors dealers that will be located in the heart of the place
at 2300 Danforth Ave, Totonto, Ontario.
 Promotion – Done via multiple channels like television (endorsing
celebrity like Justin Bieber), news paper digital medium and sales
promotion.

Budget Planning
2016 2017 2018
Variable cost:
Cost of Goods Sold $90,000,000 $135,000,000 $90,000,000
Advertisement cost:
Radio $3,000,000 $2,500,000 $2,000,000
Television $7,000,000 $6,000,000 $5,000,000
Newspaper $2,000,000 $1,500,000 $1,250,000
Digital $5,000,000 $4,000,000 $3,500,000
Salary for sale
representative:
Salary $10,500,000 $15,000,000 $16,000,000
Distribution cost $10,000,000 $15,000,000 $10,000,000
Administrative cost $8,000,000 $12,000,000 $10,000,000
Fixed cost :
Property, Plant and
Equipment
$50,000,000 $10,000,000 $7,000,000
Total $185,500,000 $201,000,000 $144,750,000

Conclusion and
Recommendations
 The company is having huge opportunities in emerging markets and
developing countries.
 Launching of Gen X Tata Nano in Canadian market needs an effective
marketing plan and strategy by focusing on the major target market.
 With targeting the segment, they have to influence the customer mind
and position their product in the minds of the customers.
 Need to exploit the e-commerce trend and digital medium for expanding
overseas.