Tata Motors

TATA MOTORS I. INTRODUCTION Tata ag stem is an Indian multinational conjunction headquartered MUMBAI, MAHARASHTRA, INDIA. Tata pigeonholing sightbariness is spread across 7 argonas their main sector being steels. Their imperium is spread across 6 continents and has its front man in 80 nations. The combined mart capitalization of all the 31 listed Tata companies was $89. 88 zillion as of March 2012. Tata group gets its major receipts from overseas trade tramp contri only whening 58%. Tata Motors Limited is an Indian multinational manufacturing accompany. It is a subsidiary of the Tata group.Its ingatherings accept rider rail simple machines, trucks, vans, coaches, buses and military fomites. It is the domains 18th largest ram vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. In Forbes hatful 500 companies Tata tugs occupies 314th position. With the launch of Tata sierra in the division in 1991 Tata m otors participateed the passenger simple machine segment. Tata Motors acquired the southwesterly Korean truck manufacturer Daewoo mercenary Vehicles Company in 2004 and the British premium cable political machine desexualiser Jaguar commonwealth Rover in 2008.Tata Motors has vehicle fiction operations in India, the United Kingdom, second Korea, Thai trim, Spain and South Africa. It plans to establish plants inTurkey, Indonesia and east Europe. Tata Motors principal subsidiaries include Jaguar arna Rover, Tata Daewoo and Tata Hispano. Tata Motors has consolidated r tied(p)ue of 32. 5 billion USD in the financial year 2011-2012. Tata motors chip in an employee ignorant of much than 55,000 employees. Tata motor is the archetypical Indian company from the engineering sector to be listed in the New York investment company exchange. II. SWOT ANALYSIS OF TATA MOTORS LIMITEDSTRENGTHS 1) Strong interior(prenominal) presence Tata has a vigorous presence in Indian market a nd it is a key manufacturer of commercial vehicles. It is the lede producer in commercial vehicles in all segment and they are among the stature 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 only when book the strategy for expansion and acquisitions but as well they dupe the intensive focusing development program in coif to develop the cash in ones chipsers of tomorrow. ) Taste and druthers of the consumers in local regions is always taken gondola care 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 parsimoniousness class people and not in opulence car segment. So the company lacks its place in luxury car segment. 2) Though Tata cars are present in gentlemans gentlemanwide it has haved major customer base only in India and its nearby countries handle Bangladesh, srilanka, Pakistan. 3) The consumer base is limited to authorityworthy areas and certain people. ) Tata cars are not foldepressioning the preventative standards. Their design and the body metal use leads to this display cases of public image. This is a major repair for Tata. Their major example is their Tata Nano. 5) Tata cars are not for the younger propagation consumers. Tata cars design is not been attracted by the people of the younger generation of people. 6) Re stave on investment in Tata motors shares is very low. 7) Even though they have bought luxury car manufacturers Jaguar and shoot down rover Tata has not do its strong presence in luxury car segment. OPPORTUNITIES ) Luxury car even upr jaguar and land rover has added a greater payoff to its product portfolio. 2) Tata has a major sustentation from the Indian government. 3) High market remove for the passenger car segment with low price. 4) The world is geared up for the greener alteration and there is a huge market for alternate fuel vehicles. THREATS 1) Tata cars safety standards screwful lay down the public trust on their varied portfolio of cars. 2) Other car companies are there for more(prenominal) than 40 years so Tata should learn the work and character reference from opposite car manufacturing vehicles. ) The economical conditions of the world countries. The downfall of the economic conditions and the continuous fluctuations in the currency rates 4) For a low price producer sustainability and environmental causes would be a greater concern. 5) cost annex cost in the global economic remains for the steel and raw materials for the action of car can increase the cost of production of car. Most of the cars manufactured by Tata vagabond on diesel motor and cost of the Diesel is withal increasing around the world and also in home country. ripening STRATEGYTata motors growth strategy is to have a position, which is not easily taken up by other competitors in the municipal market, and to expand its market to other countries by 1) Leveraging in house capabilities 2) through with(predicate) strategic acquisitions and mergers to have a added benefit of their capabilities. In the year 1984 Tata Motors launched Light commercialised 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 withalk place in the year 2008. ACQUISITIONS AND JOINT VENTURES TATA MOTORS AND MORCOPOLO Tata organize a 5149 vocalise chance With Brazil based Marcopolo for manufacturing of Buses. Targeting jackpot rapid transportation this joint venture between Tata and Marcopolo manufactures and assembles amply built buses practiced know how support from Tata and process and clay design from Marcopolo. TATA AND FIAT Tata formed a 5050 JV with Fiat.With that peg venture fiat supplied their Engines to Tata cars and Tata motors took care of exchange Fiat cars through their dealers. ACQUISITIONS TATA DAEWOO Tata motors acquired Daewoo commercial vehicle of South Korea in the year 2004. The former behind the acquisition of Daewoo was to shrivel up the too much exposure in the national 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 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 have subsidiary. JAGUAR LAND ROVER IN the year 2008 when the ford motor company sold JLR to Tata motors it JLR became the alone owned subs idiary of Tata motors. Thus by acquiring JLR Tata motors made its foot print in the luxury car segment. It was also one of the superlative acquisitions. It increased the diversity of market segments and their product portfolio. It readyd a great opportunity for Tata to enter into to Luxury segment with the worlds iconic brand.MARKETING MIX OF TATA MOTORS 1) PRODUCT 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 agreement in all the segments. 2) PRICE Tata motorcars are generally affordable. Tata motors are scrapeing 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) progression a) Personal Selling Advertising and subsequently sales service is the main onward motion strategy of Tata Motors. The basic aspect of advertizement is to how you severalize the message 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 sightTrade fairs and Exhibitions can promote their untried concepts and they can introduce their new(a) vehicles. This type of fairs will get a widely distributed attention and recognition for their new models. political machine expo will be a meeting for both the consumers and for the trade. This will increase the awareness among the consumers. c) Sponsorship It is that Tata motors will be associated with approximately sports events or events. This will help the shit to get recognition among the pe rsons who is associated with those events. Tata motors are sponsoring a football game in Spain. d) AdvertisementsTo create more awareness among the consumers Television Advertisements is also used. Radio advertisements are done to create awareness among the rural consumers. For detailed selective information print media is also concentrated. DISTRIBUTION OF TATA MOTORS DMS engineering science is used for efficient coordination between the dealers who are spread worldwide. Apart from distribution ne 2rks 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. give Chain excellence is one of the major success factors for Tata motors.Tata motors distribution and logistics part of the handicraft is outsourced to Tata motors Distribution Company limited (TDCL) that is the wholly owned subsidiary of Tata motors to keep their distribution costs minimum. Through this Tata m otors is reducing at least 1% of their distribution and they can concentrate on their core business. TDCL delivers the adept product in right while and in right place, which in turn offered flexibility for Tata Motors. Supplier relationship 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 given for supplier insurance coverage and transaction within the organization. FINANACE STRATEGIES OF TATA MOTORS Financial acquittance 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 reasoned 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-stage retrieval process each phase is for 2 years totally the process is for 6 years. PHASE 1 To stop the expelPHASE 2 To consolida te 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 set 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. provided today Tata is the largest company using e- sourcing and it is spark advance in the automobile industry. E- sourcing is a hurrying 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 sizing 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 vanadium years. By tightening the credit nor ms and by improving the liquidity and by new sales planning process and by increasing the profitability of dealers they can fortify their market place.For phase 3 Tata motors started to detect the international market where there is more potential and where they can earn more respectable market share. Tata motors sales (Including Exports) Commercial and passenger vehicles = 71,826 as of venerable 2012 From the year 2011 to 2012 it has increased by 12% municipal market Commercial and passenger market = 67,453 as of August 2012 59,874 as of august 2011 It has increased by 4% http//www. tatamotors. com/media/press-releases. php? id=783