Marketing Strategy of Tata Motors – (TTM)

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Marketing Strategy of Tata Motors – TTM: The company is headquartered and located in Mumbai Tata Motors (formerly named TELCO acronym of TATA Engineering and Locomotive Company) is an Indian multinational company manufacturing automotive and is a part of the Tata group. The range of products that are offered by the company range from vehicles, truck vans, coaches, and military vehicles to buses, sports cars as well as construction machinery. 

TATA Motors is listed as 226 7th among the Fortune Global 500 list of the world’s largest corporations as of the year 2016. 

Marketing Strategy of Tata Motors

Did You Know About  Tata Motors?

[wp-svg-icons icon=”office” wrap=”I”] Company : Tata Motors

[wp-svg-icons icon=”user” wrap=”I”] CEO: Guenter Butschek

[wp-svg-icons icon=”user” wrap=”I”] Founder: J. R. D. Tata

[wp-svg-icons icon=”calendar” wrap=”I”] Year founded: 1945; 76 years ago

[wp-svg-icons icon=”location-2″ wrap=”I”] Headquarters: Mumbai, Maharashtra, INDIA

[wp-svg-icons icon=”stats” wrap=”I”] Annual Revenue : US$42 billion (2021)

[wp-svg-icons icon=”bars” wrap=”i”] Profit | Net income : US$−1.7 billion  (2021)

[wp-svg-icons icon=”pie” wrap=”i”] Products & Services:  Automobiles, Luxury vehicles, Commercial vehicles, Automotive parts, Pickup trucks, SUVs

[wp-svg-icons icon=”pacman” wrap=”I”] Competitors: Tesla | Mitsubishi Motors | Audi | PACCAR | Hyundai Motor | Volvo Group | Chevrolet | CaetanoBus | Jaguar

[wp-svg-icons icon=”globe” wrap=”I”] Website: www.tatamotors.com

Tata motors Fun Fact : Tata Motors owns Britain’s Jaguar Land Rover. Tata Motors is today present in more than 170 countries around the globe. Today over 8.5 million vehicles of the Tata Brand are plying in the world. Through exports, the company has been expanding its international presence since 1961.

Segmentation, Targeting, Positioning in the Marketing Strategy of Tata Motors

Tata Motors does not follow an exclusive marketing approach or formula but believes that every member of the community should receive the same services. The brand is targeted at people from rural areas up to the metros, with products ranging from NANO to the Jaguar Land Rover segment. 

It is targeted at anyone earning over the 4 Lakh p.a. salary, young people employed as managers, professionals, and anyone who wants to move from a 2-wheeler to a four-wheeler. The age range for the product ranges from 21 to 65 years for all Middle classes. Middle-class upper, High class, and Affluent classes in the targeted segment. 

Tata Motors offers products such as Tata ACE, a mini truck that is mostly used for agricultural transport purposes, Tata NANO for middle-class people, Tata Indica and Indigo for commercial use as well as Jaguar in the premium segment which creates the perception that there’s something to suit everyone in the vast array of options. 

The differentiated targeted method is employed in Tata Motors to target the customers and fulfill their desires and demands. 

Marketing Strategy of Tata Motors

Tata Motors Mission

  “We innovate with passion, mobility solutions to enhance the quality of life”

Tata Motors Vision

“To be the most reliable global network for customers and suppliers, that delivers value through products and services. To be a responsible value creator for all our stakeholders.”

Tata Motors Tagline

 “Connecting Aspirations”.

Competitive advantage in the Marketing Strategy of Tata Motors

The company is based in India and is a major competitor for the company because it is a low-cost labor base, with the assistance of which the company does not just target not only the Indian markets but as well the other new markets with a wide selection of low-cost vehicles. The products provided are made at a cost that is lower and is sold to markets that are not yet established which generates massive profits for the company. 

The regulations and policies for those working in the automotive business in the nation as well as the cheapest car parts are the main factors that help the brand with its business growth. 

The exceptional technological advancements in the development of research, as well as improvement in TATA Motors, have created an example for competitors. Through its numerous research centers all over the country, TATA Motors is striving to improve the quality of the engine’s effective design, appearance, and instrumentation of cars. 

To enter foreign markets, TATA Motors has acquired over time several foreign businesses. Although the company has achieved impressive results in the domestic market and its subsidiary Jaguar Land Rover has shattered all records set by competitors as the most prestigious luxury vehicle manufacturer. This huge expansion plan requires significant new product development, capitalization for capacity as well as a variety of regional as well as international alliances. 

BCG Matrix in the Marketing Strategy of Tata Motors

Indica as the most favored commercial vehicle, is in the top segment, along with Safari Dicor, Manza, Winger, and Magic. 

Despite Safari, Sumo, and Indigo CS being their primary source of income, Nano& Zest remains a question in the mark the segment. 

Distribution strategy in the Marketing Strategy of Tata Motors

With 576 automobile dealers spread across 424 cities in India, TATA Motors holds an impressive dealer network throughout the country and sold more than 56,000 vehicles in July of 2018. The brand recorded a remarkable increase of 64% in its domestic sales in the first trimester (April-June 2018) and FY19 saw 164,579 units, compared to 1001,141 units in the prior year thanks to its extensive dealer network. 

Brand equity in the Marketing Strategy of Tata Motors

TATA is determined to meet the needs of the automotive industry by developing new products. They are designed to provide security, comfort, reliability as well as value for the customers who purchase them. To remain ahead of the pack The company plans for massive investment in the development of its products. TATA Nano carries an image as the most affordable car anywhere in the world. TATA Ace is being introduced to the market of commercial vehicles to capture some of the parts of the market from its competitors. Another car that is a sporty Nexon which has diesel as well as petrol engines is also attracting customers already. 

Competitive analysis in the Marketing Strategy of Tata Motors

The Indian auto market becoming crowded with numerous companies from both the international and national markets adhering to a red-ocean approach. Businesses like Hyundai, Fiat, Maruti Suzuki, Toyota & Honda are providing an uphill battle to the marque, with all taking each other’s market share. 

Market analysis in the Marketing Strategy of Tata Motors

With an estimated market share of 44% in commercial vehicles in the 2017-2018 period, the brand is an industry market-leading brand in this sector. 

Through an initiative called Turnaround, 2.0 company is looking to gain market share in the Passenger vehicle segment. A portion of this initiative has been implemented and has already begun showing improvements for the PV company of the company. 

A focus on serviceability to tap into and penetrate the expanding markets will further benefit the company’s turnaround 2.0 project in the highly competitive field. 

Customer analysis in the Marketing Strategy of Tata Motors

The customers of TATA Motors belong to the lower middle and upper classes who want to move to a four-wheeler from a two-wheeler and want to purchase the right vehicle for their family use at an affordable price. The brand’s customers include young and top-of-the-line business professionals who are searching for cutting-edge, modern cars with top security features. 

Promotional strategy in the Marketing Strategy of Tata Motors

TATA Motors carries out its promotional strategy in 2 ways:

Above the line (ATL)

  • It includes: print ads (newspaper advertisements by local dealers, magazines)
  • TV, Radio

Below the line (BTL) Promotions:

  • It includes: exchange fair
  • Rural fair
  • Loan fair,
  • Society activities
  • Corporate display activities

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