INTRODUCTION

Tata Motors Limited is India's largest automobile company. The company is the world's fourth largest truck manufacturer, and the world's third largest bus manufacturer . Started its operation in 1945 . Manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka).

 Tata Motors Limited is a part of Tata Group.

Founder-Jamshedji Tata (TELCO) The company was established in 1945 as a locomotive manufacturing unit. It tied up with Daimler Benz and entered Commercial Vehicle segment in 1954. In 1992, Tata Motors entered the Small Vehicle Segment. TML decided to pursue joint ventures Cummins engine Co was the first company to jointly venture in 1993.

COMMERCIAL VEHICLES

PASSENGER VEHICLES

MILITARY VEHICLES

Best in the manner in which we operate, we deliver, and our value system and ethics

OTHER COLLABORATIONS/M&A & JVs Tata Daewoo Commercial Vehicle Hispano in Spain & Marcopolo In Brazil JV with Jardine Matheson for ConcordeMotors Technology Tie Ups at Spain,Italy North Africa

West Europe U.K. Italy

Russia* Ukraine* Central Asia Afghanistan Uzbekistan East Asia China South Korea* South Asia Bangladesh * Nepal, Sri Lanka

Egypt
West Africa Senegal LATAM Brazil West Asia Saudi Arabia Iraq, Iran South Africa South Africa* * Assembly Operations also
6

South East Asia Malaysia* Thailand

East Africa Kenya*

ASHOK LEYLAND VOLVO MOTORS SWARAJ MAZDA MAHINDRA MOTORS

MARUTI SUZUKI

HONDA MOTORS HYUNDAI MOTORS

 Products , Brands and Advertisements

:- From0% To 100%

Pricing

:-Determining low price market

Place

:- Selling at right place

Maintenance & Support

:- Good maintenance service

Transporters, Convoy Drivers Association SAP , VCM

Dealer Network, Marketing Research Firms, Vehicle Financing

Inbound Logistics

Operations

Outbound Logistics

Marketing

Service

SAP , CRM - DMS

Suppliers , Contractors

Strategic Alliances

Regional Warehouses, Dealer Workshops, Distributors, TASS

 Long term contract with service providers

transporters and agents. Personnel at regional offices for over seeing the smooth transit of goods. Transparency and monitoring through deployment of IT all transactions through SAP. DTL supplies for critical high value items. Efficient storage facilities easy storage and retrieval.

Capital Equipment Manufacturing division tooling development

capabilities of global standard.

Apprentice Trainee Course ensuring stable source of skilled manpower.

Kaizen & TPM team continuous drive to improve efficiencies.

Automated manufacturing processes. Distributed manufacturing Assembly units at South Africa, Thailand, Bangladesh, Brazil etc.

Maintenance technical competence. Capacity Utilization Mercedes Benz cars make use of Tata Motors paint shop facilities.

Stockyards, all across the country.

Long term contracts with transporters higher volume of business to transporters ensures competitive price.

Regional Sales Office and Vehicle Dispatch Section linked through SAP.

Efficient security system for prevention of any kind of

pilferage.

Structured approach to understanding the requirements of individual customers QFDs conducted at regular intervals. Clear identification of product requirements, leading to development of innovative products Tata 207 DI, Tata Ace Pan India presence and global footprint. Independent teams for addressing the requirements of institutional customers Defense, State Transport Units Helping to augment the scarce resources Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiats technology and unutilized capacity. Quick assessment of the changing market dynamics and consumer preferences Tata 407 LCV Large network of dealers use of technology : DMS.

Easy availability of spare parts. Efficient collection of data from field and communication to the respective plants.

Pan India presence, as well as global presence. Large network of workshops Dealer workshops

Training facilities for dealer end

Strengths
Market leader in Automobile industry

Weakness
Return on Investment in TM is low. Has not got a foothold in the luxury car segment in its domestic market.

Aggressively acquiring foreign brands to increase its global presence Produce low price car with low fuel consumption

Opportunities
Advantage of their low cost car by entering into third world countries where people have low purchasing power. Should focus in developing luxury cars. Joint ventures in other countries allow TATA motors to easily enter into new market.

Threats
Have low cost advantage over its competitors, once the competitors find out the low cost production methodology then there will be no competitive advantage Major challenge for TM is rising prices of steel, Aluminum and plastic which is heavily used in vehicle manufacturing. Low safety standards can impact sales.


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International strategy based on the competitive advantage:

New product (e.g. Tata Nano, the cheapest car in the World). Acquisitions (e.g. Land Rover and Jaguar brands from Ford Motors). Partnership with established companies (e.g. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange. o Facilities for learning from other companies. o Developing programmes for intensive management development.

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Consolidate position in India by exploiting opportunities:

New mobility of young Indians. Governments substantial road-building program GDP growth

1984 : Indias first LCV (407 truck) 1996 : Indias first SUV (safari) 1998 : Indias first Passenger Car (Indica) 2004 : Acquisition of Tata Daewoo, Korea 2005 : Acquisition of stake in Hispano, Spain 2005 : Indias first mini-truck ACE Leveraging in house 2007 : Formed an industrial JV with Fiat capabilities 2007 : JV in Thailand with Thonburi Acquisitions and strategic 2007 : JV in India with Marcopolo of Brazil. collaborations to gain 2008 : Peoples car Tata Nano complementary capabilities 2008 : Acquisition of Jaguar Land Rover
To consolidate position in the domestic market and expand international footprint through development of new products by

How did TATA create initial resource complement to overcome the disadvantage of being newcomers in passenger car business?
STRATEGY
R&D

INSTITUTIONS

Strategic partnerships
Joint ventures Acquisitions Intensive management development

Government support (10Year Plan)

New institutions for trade promotion, technology upgradation, quality enhancement (ACMA: Automotive Component Manufacturers Association, SIAM: Society of Indian Automobile Manufacturers )

Market Share Till 1998

22% 15% 6% 57% Maruti Fiat Daewoo

Hyundai

Market Share after Indica launch

18% 7% 36% 27% 12% Maruti

Hyundai
Daewoo Fiat

Epitome of persistence Demonstrated how to manage product lifecycle effectively. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry. Constant focus of Tata Motors to improve the product continuously. Get a diesel car with that much space at the price at which Indica was selling so far The brand made a quantum leap in 2008 with the launch of Indica Vista. Indica in a way is an example of good marketing practice

The Tata Ace is a mini-truck launched in May 2005. In competition with the prevalent three-wheeled goods carriers from Bajaj Auto, Piaggio, Mahindra and Force Motors. Golden quadrilateral project started by the NDA government-led to creation of large number of expressways and widened many of the existing highways(a portion of traffic moved from railways to roads). Demand for transportation of goods within a city was increasing because of increasing population and growth in the organized retail sector with the entry of large players. It was a big hit, selling 100,000 in just 20 months.

They wanted to diversify, augment and de-risk their sources of revenue.

Variants of TATA Ace running on CNG fuel- more environmental friendly engines launched.

Riding on the success of TATA Ace-TATA Super Ace and TATA Ace Zip launched.

Customer is King-The market research team realized that the customers in rural areas attached prestige to their transport vehicles.
ProductThe 4 wheelers are safer due to greater balance. Operating cost of TATA Ace is much lower. Many changes were introduced to increase the comfort level. Pricing-Targeted customers willing to pay a higher price for extra value provided to them ( at 2 lakhs) Positioning-Projected as a vehicle which is reliable, sturdy, and small in size. The small elephant advertisement amply captured these attributes. After Sales-Augmented the service network by providing training to automobile garages and branded them Tata-certified service points. Cost-efficient production-The number of components used was kept low, the assembly line was made short, and around 80% per cent of the Tata Ace components were outsourced.

Daewoo Commercial Vehicle Company Ltd(DWCV) was the 2nd largest heavy truck maker in Korea. The MoU was signed between the two companies on Nov 5th, 2003.

The complementary product range of the two companies, strengths in product development and international marketing was thought to be the opportunity.
Though the Korean company was initially apprehensive about the deal the company went through a turnaround after this acquisition. Exports jumped about five times, revenues more than doubled and operating profit grew more than eight times.

The key was tripartite cooperation between Tata Motors, new management and employees. Acquirer Tata Motors had performed operations with a 'humble attitude.' It appointed a native Korean as CEO. Respected the Korean business style and corporate culture. Its decision to maintain the old Daewoo brand in Korea and in 10 overseas markets, including Algeria, pleased the employees. The appointment of excellent management staff and 'strategic management.' President Chae Kwang is behind the success of today's Tata Daewoo. Tata Daewoo's 'hidden card' was to produce 'a mid-sized truck like a largesized one,' a model as spacious and safe as a large-sized truck, but with a medium-sized load carrying capacity-this model sold like hotcakes. It was the management's trust towards employees and efforts for mutual prosperity. During the year 2008, its union members gave full support to their management with a single goal in mind: to overcome the financial crisis.

Acquisition took place in 2008. Opportunity to participate in two fast growing auto segments (premium and small cars) and to build a comprehensive product portfolio with a global footprint immediately.

Land Rover provides a natural fit above TMLs Utility Vehicles/SUV/Crossover offerings for the premium category. Jaguar offers a range of Performance/Luxury vehicles to broaden the brand portfolio. Sharing of best practices between Jaguar, Land Rover and Tata Motors in the future.
Long-term benefits from component sourcing, low cost engineering and design services

THE LAUNCH:
I observed families riding on two- wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder for such a car which is safe & affordable to any middle class family. - Ratan Tata. It was designed to be the cheapest car in India aimed mainly at the lowest price segment in the Indian domestic market. The purchase price of this automobile was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labour

THE SETBACK: But in spite of its low price, nano didnt get very popular. Its mainly due to: its disruptive innovation which resulted in safety and space issues Its image of being a poor mans car. production delays

THE COMEBACK: Now Tata Nano is all set to get back into business by: aggressive marketing shedding the image of being the poor mans car. making the car more easily accessible to people carrying forward its vendor partnership production strategy Tata motors already has a distribution alliance with Italian car maker fiat spa which it plans to use to sell Tata nano in overseas market.