Tata Motors Company Analysis Report 2015-2016

TATA MOTORS

SHRI DHARMASTHALA MANJUNATHESHWARA COLLEGE OF

ENGINEERING AND TECHONOLOGY

(An Autonomous Institution Affiliated to VTU Belgaum)

Dharwad-580002, Karnataka

COMPANY ANALYSIS REPORT ON

TATA MOTORS

SUBMITTED BY:

RAGHUVEER BELLI (2SD15MBA31)

RAHUL V G (2SD15MBA32)

UNDER THE GUIDANCE OF

Mrs.SUPREETA M LAGALI(Lecturer,Department of Management Studies)

DEPARTMENT OF MANAGEMENT Page 1

TATA MOTORS

ACKNOWLEDGEMENT

With pleasure we are placing before you this report titled as “TATA MOTORS”.

I express my sincere thanks and heartful gratitude to professor Mrs. Supreeta Lagali department

of management SDMCET Dharwad, for her excellent and inspiring guidance and suggestions

through the repot work without her inspiring encouragement it would have been not possible for

us to bring out this report and giving us this opportunity, because it had been a very good attempt

to educate the youth regarding the report on company in a practical way, as we earlier studied in

theory, which makes us perfect in the subject.

We are very much greatful to professor Mr.Mdhusudhan K Vyapari(HOD of the Management

department) and also Dr. S.B. Vanakudre (principle of the college) for providing necessary

infrastructure facilities for preparing this report work.

Last but not the least, my sincere thanks to everybody who has helped us directly or indirectly

for the completion of this report work.


TATA MOTORS

Contents

Serial no particulars Page No

1) ORGANAZATIONAL PROFILE

1.1 REGISTERD NAME, LOCATION AND ADRESS OF THE COMPANY 6-7

1.2 NATURE OF BUISINESS 7-10

1.3 ORGANAZATIONAL STRUCTURE AND MAJOR ROLES 11-12

IN THE COMPANY

1.4 BRIEFE HISTORY OR MILESTONE OF THE COMPANY 13-17

1.5 OWNERSHIP PATTERN 18-19

1.6 VISION MISSION AND QUALITY POLICY OF THE COMPANY 20

1.7 BOARD OF DIRECTORS 21

1.8 AREA OF OPARATION 22-24

2) MARKETING STRATERGY

2.1 PRODUCT PORTFOLIO OF THE COMPANY 25

2.2 MARKETING MIX OF THE COMPANY 26-29

2.3 COMPETATOR ANALYSIS OF THE COMPANY 30-31

2.4 MARKET SHARE OF THE COMPANY 32-33


TATA MOTORS

3) FINANCIAL PROFILE

3.1 CAPITAL STRUCTURE 34-36

3.2 FINANCIAL STATEMENT 37-38

4) HUMAN RESOURCE PROFILE

4.1 SIZE OF THE ORGANAZATION IN TERM OF EMPOYEE 39

4.2 H R POLICY OF THE COMPANY 39-43

5) OPERATIONAL PROFILE

5.1 MANUFACTURING PROCESS OR DELIVERY MACHANISM 44

5.2 MAJOR RAW MATERIALS 45

5.3 MAJOR SUPPLIERS 45-46

6) STRATERGIC ANALYSIS

6.1 STRATERGY THE COMPANY FALLOWS TO DEFFERETIATE 47-48

FROM COMPETATORS

6.2 SWOT ANALYSIS OF THE COMPANY 49-51

6.3 MECKINYES 7S MODEL 52-53


TATA MOTORS


TATA MOTORS

TATA MOTORS LIMITED

Phone: +(91)-22-66658282

Fax: 18002097979

Bombay House, 24, Homi Modi Street, Fort, Mumbai - 400001, Hutatma Chowk

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive

Company) is an Indian multinationalautomotive manufacturing company headquartered

in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. Its products include

passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is

the world's 17th-largest motor vehicle manufacturing company, fourth-largest truck

manufacturer, and second-largest bus manufacturer by volume.[3]

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in

Argentina, South Africa, Thailand, and the United Kingdom. It has research and development

centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Spain, and the

United Kingdom. Tata Motors' principal subsidiaries purchased the British premium car

maker Jaguar Land Rover (the maker of Jaguar, Land Rover, and Range Rover cars) and the

South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-

manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment

manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint

venture with FiatChrysler which manufactures automotive components and FiatChrysler and

Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.

Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra,

becoming the first Indian manufacturer to achieve the capability of developing a competitive

indigenous automobile.[4] In 1998, Tata launched the first fully indigenous Indian passenger car,

the Indica, and in 2008 launched the Tata Nano, the world's cheapest car. Tata Motors acquired


https://en.wikipedia.org/wiki/Tata_Motors#cite_note-4

https://en.wikipedia.org/wiki/Tata_Motors#cite_note-10K-3

TATA MOTORS

the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and

purchased Jaguar Land Rover from Ford in 2008.

Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSE

SENSEX index, the National Stock Exchange of India, and the New York Stock Exchange. Tata

Motors is ranked 287th in the 2014 Fortune Global 500 ranking of the world's biggest

corporations..

OPERATIONS:

Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea,

Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia, and Eastern

Europe..

Tata Motors Cars:

Tata Motors Cars is a division of Tata Motors which produces passenger cars under the Tata

Motors marque. Tata Motors is among the top four passenger vehicle brands in India with

products in the compact, midsize car, and utility vehicle segments. The company’s

manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra),

Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat).

Tata's dealership, sales, service, and spare parts network comprises over 3,500 touch points.[21] Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and

four Union Territories of India.[22] It has the third-largest sales and service network after Maruti

Suzuki and Hyundai.

Tata Hispano:


https://en.wikipedia.org/wiki/Tata_Motors#cite_note-22

https://en.wikipedia.org/wiki/Tata_Motors#cite_note-tatamotors1-21

TATA MOTORS

Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza,

Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata Hispano has plants in

Zaragoza, Spain, and Casablanca, Morocco. Tata Motors first acquired a 21% stake in Hispano

Carrocera SA in 2005, and purchased the remaining 79% for an undisclosed sum in 2009,

making it a fully owned subsidiary, subsequently renamed Tata Hispano. In 2013, Tata Hispano

ceased production at its Zaragoza plant..

Jaguar Land Rover:

The Range Rover Evoque

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley, Coventry,

United Kingdom, and has been a wholly owned subsidiary of Tata Motors since June 2008, when

it was acquired from Ford Motor Company. Its principal activity is the development,

manufacture and sale of Jaguar luxury and sports cars and Land Rover premium four-wheel-

drive vehicles. It also owns the currently dormant Daimler, Lanchester, and Rover brands.

Jaguar Land Rover has two design centres and three assembly plants in the UK. Under Tata

ownership, Jaguar Land Rover has launched new vehicles including the Range Rover

Evoque, Jaguar F-Type, the Jaguar XF, the Jaguar XJ (X351 )the second-generation Range

Rover Sport, the fourth-generation Land Rover Discovery, and the Range Rover L405

TML Drivelines:TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the manufacture of

gear boxes and axles for heavy and medium commercial vehicles. It has production facilities at

Jamshedpur and Lucknow. TML Forge division is also a recent acquisition of TML Drivelines.

TML Drivelines was formed through the merger of HV Transmission and HV Axles .


TATA MOTORS

Tata Technologies:Tata Technologies Limited (TTL) is an 86.91%-owned subsidiary of Tata Motors which

provides design, engineering, and business process outsourcing services to the automotive

industry. It is headquartered in Pune (Hinjewadi) and also has operations in Detroit, London,

and Thailand. Its clients include Ford, General Motors, Honda, and Toyota.

The British engineering and design services company Incat International, which specialises in

engineering and design services and product lifecycle management in the automotive, aerospace,

and engineering sectors, is a wholly owned subsidiary of TTL. It was acquired by TTL in August

2005 for 4 billion.₹

European Technical Centre:The Tata Motors European Technical Centre (TMETC) is an automotive design, engineering,

and research company based at Warwick Manufacturing Group (WMG) on the campus of

the University of Warwick in the United Kingdom. It was established in 2005 and is a wholly

owned subsidiary of Tata Motors. It was the joint developer of the World Truck.

In September 2013, it was announced that a new National Automotive Innovation Campus would

be built at WMG at Warwick's main campus at a cost of £100 million. The initiative will be a

partnership between Tata Motors, the university, and Jaguar Land Rover, with £30 million in

funding coming from Tata Motors .

Joint ventures

Tata Marcopolo:

A Tata Marcopolo bus in use inChandigarh, India

Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%)

and the Brazil-based Marcopolo S.A. (49%). The joint venture manufactures and

assembles fully built buses and coaches targeted at developing mass rapid


TATA MOTORS

transportation systems. It uses technology and expertise in chassis and aggregates

from Tata Motors, and know-how in processes and systems for bodybuilding and

bus body design from Marcopolo. Tata Marcopolo has launched a low-floor city

bus which is widely used by Chandigarh, Kolkata, Chennai, Coimbatore, Delhi,

Hyderabad, Mumbai, Lucknow, Pune, Agra, Kochi, Trivandrum, and Bengaluru

transport corporations. Its manufacturing facility is based in Dharwad.

Fiat-Tata:Fiat-Tata is an India-based joint venture between Tata and Fiat which produces Fiat and Tata

branded passenger cars, as well as engines and transmissions. Tata Motors has gained access to

Fiat’s diesel engine and transmission technology through the joint venture.

The two companies formerly also had a distribution joint venture through which Fiat products

were sold in India through joint Tata-Fiat dealerships. This distribution arrangement was ended

in March 2013; Fiats have since been distributed in India by Fiat Automobiles India Limited, a

wholly owned subsidiary of Fiat

Tata Hitachi Construction Machinery:Tata Hitachi Construction Machinery is a joint venture between Tata Motors and Hitachi which

manufactures excavators and other construction equipment. It was previously known as Telcon

Construction Solutions...

TATA MOTORS ORGANISATION CHART


TATA MOTORS

Business Structure


Mr. Guenter ButschekCEO & Managing Director

TATA MOTORS


TATA MOTORS

HISTORY:Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-

Benz of Germany. After years of dominating the commercial vehicle market in India, Tata

Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility

vehicle. Tata subsequently launched the Tata Estate (1992; a station wagon design based on the

earlier 'TataMobile' (1989), a light commercial vehicle), the Tata Sumo (1994; LCV) and the

Tata Safari (1998; India's first sports utility vehicle).

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Although

initially criticized by auto analysts, its excellent fuel economy, powerful engine, and an

aggressive marketing strategy made it one of the best-selling cars in the history of the Indian

automobile industry. A newer version of the car, named Indica V2, was a major improvement

over the previous version and quickly became a mass favourite. Tata Motors also successfully

exported large numbers of the car to South Africa. The success of the Indica played a key role in

the growth of Tata Motors.

In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo

Commercial Vehicles Company, later renamed Tata Daewoo.


TATA MOTORS

BRIEF HISTORY/ MILESTONES OF THE COMPANY

It has been a long and accelerated journey for Tata Motors, India's leading automobile

manufacturer. Some significant milestones in the company's journey towards excellence and

leadership.

1945

Tata Engineering and Locomotive Co. Ltd. was established to manufacture

locomotives and other engineering products.

1948

Steam road roller introduced in collaboration with Marshall Sons (UK).

1954

Collaboration with Daimler Benz AG, West Germany, for manufacture of medium

commercial vehicles. The first vehicle rolled out within 6 months of the contract.

1959

Research and Development Centre set up at Jamshedpur.

1961

Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.

1966

Setting up of the Engineering Research Centre at Pune to provide impetus to

automobile Research and Development.

1971

Introduction of DI engines.

1977

First commercial vehicle manufactured in Pune.

1983

Manufacture of Heavy Commercial Vehicle commences.

1985

First hydraulic excavator produced with Hitachi collaboration.

1986


TATA MOTORS

Production of first light commercial vehicle, Tata 407, indigenously designed,

followed by Tata 608.

1989

Introduction of the Tatamobile 206 - 3rd LCV model.

1991

Launch of the 1st indigenous passenger car Tata Sierra.

TAC 20 crane produced.

One millionth vehicle rolled out.

1992

Launch of the Tata Estate.

1993

Joint venture agreement signed with Cummins Engine Co. Inc. for the

manufacture of high horsepower and emission friendly diesel engines.

1994

Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for

manufacture of Mercedes Benz passenger cars in India.

Joint venture agreement signed with Tata Holset Ltd., UK for manufacturing

turbochargers to be used on Cummins engines.

1995

Mercedes Benz car E220 launched.

1996

Tata Sumo deluxe launched.

1997

Tata Sierra Turbo launched.

100,000th Tata Sumo rolled out.

1998

Tata Safari - India's first sports utility vehicle launched.

2 millionth vehicle rolled out.

Indica, India's first fully indigenous passenger car launched.

1999

115,000 bookings for Indica registered against full payment within a week.


TATA MOTORS

Commercial production of Indica commences in full swing.

2000

Utility vehicles with Bharat 2 (Euro II) compliant engine launched.

Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.

2001

Indica V2 launched - 2nd generation Indica.

Indica V2 becomes India's number one car in its segment.

Exits joint venture with Daimler Chrysler.

2002

Unveiling of the Tata Sedan at Auto Expo 2002.

Petrol version of Indica V2 launched.

Launch of the EX series in Commercial vehicles.

Launch of the Tata 207 DI.

2,00,000th Indica rolled out.

5,00,000th passenger vehicle rolled out.

Launch of the Tata Sumo'+' Series

Launch of the Tata Indigo.

Tata Engineering signed a product agreement with MG Rover of the UK.

2003

Launch of the Tata Safari Limited Edition.

The Tata Indigo Station Wagon unveiled at the Geneva Motor Show.

On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata

Motors Limited.

3 millionth vehicle produced.

First CityRover rolled out

135 PS Tata Safari EXi Petrol launched

Tata SFC 407 EX Turbo launched

2004

Tata Motors unveils new product range at Auto Expo '04.

New Tata Indica V2 launched

Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment agreement


TATA MOTORS

Indigo Advent unveiled at Geneva Motor Show

Tata Motors completes acquisition of Daewoo Commercial Vehicle Company

Tata LPT 909 EX launched

Tata Daewoo Commercial Vehicle Co. Ltd. (TDCV) launches the heavy duty

truck 'NOVUS' , in Korea

Sumo Victa launched

Indigo Marina launched

Tata Motors lists on the NYSE

2005

Tata Motors rolls out its 500,000 th Passenger Vehicle

The Tata Xover unveiled at the 75th Geneva Motor Show

Launch of Novus range of medium trucks in Korea, by Tata Daewoo Commercial

Vehicle Co. (TDCV)

2006

Tata Motors unveils new long wheel base premium Indigo & X-over concept at

Auto Expo 2006

Indica V2 Xeta launched

Passenger Vehicle sales in India cross one-million mark

Tata Motors and Marcopolo, Brazil, announce joint venture to manufacture fully

built buses & coaches for India & markets abroad

Tata Motors introduces a new Indigo range


TATA MOTORS

OWNERSHIP PATTERN

CATEGORY OF SHAREHOLDER Total Number of Shares

Percentage ShareHolding (%)

Promoter

Indian Promoter 95,31,38,697 33.01

Foreign Promoter 0 0.00

Total Promoter 95,31,38,697 33.01

Non Promoter

Institutions

Mutual Funds / UTI 13,57,19,144 4.70

FI/Bank/Insurance 36,44,30,187 12.62

Govt 20,33,825 0.07

FII 68,26,10,449 23.64

Other 0 0.01

Total Institutions 1,18,47,93,605 41.04

Non-Institution

Bodies Corporate 1,29,53,787 0.45

Individuals (upto Rs. 1 lakh) 17,75,84,313 6.15

Individuals (in excess of Rs. 1 lakh) 1,00,01,232 0.35

NRIs/OCBs 1,19,56,059 0.41

Others 72,42,92,704 25.09

Total Non-Institution 74,92,02,550 25.95

Total Non Promoter 1,93,39,96,155 66.99


TATA MOTORS

CATEGORY OF SHAREHOLDER Total Number of Shares

Percentage ShareHolding (%)

Depository Receipts 0 0.00

Total 2,88,71,34,852 100.00


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MISSION,VISION&QUALITY POLICY

Mission Statement Of Tata Motors

To be passioniate in anticipating and provoiding the best vehicles and experiences that excite our

customers globally

Vision Statement Of Tata Motors

Most admired by our customers,employees,buisness partners and shareholders for the

experiences and value they enjoy from being with us.

Culture> Accountability

> Customer & Product Focus

> Excellence

>Speed

Values

> Inclusion

>Integrity

>Accountability

>Customer

>Innovation

>Concern for environment

>Passion for excellence

>Agility


TATA MOTORS

TATA MOTORS BOARD OF DIRECTORS

Name Designation

Ratan N Tata Chairman Emeritus

Guenter Butschek Managing Director & CEO

Satish B Borwankar Executive Director

R A Mashelkar Ind. Non-Executive Director

N Munjee Ind. Non-Executive Director

Falguni Nayar Ind. Non-Executive Director

Name Designation

Cyrus P Mistry Chairman & Non-Exe.Director

Ravindra Pisharody Executive Director

N N Wadia Ind. Non-Executive Director

S Bhargava Ind. Non-Executive Director

V K Jairath Ind. Non-Executive Director

Ralf Speth Non Executive Director


TATA MOTORS

TATA MOTORS OPERATIONS

Domestic Operations:

Tata Motors continued to witness year-on-year growth in the M&HCV segment in February

2016, with a growth of 22%. Total sales of Tata Motors passenger and commercial vehicles

(including exports) were at 46,674 vehicles, higher by 6%, over 44,233 vehicles, sold in

February 2015. The domestic sale of Tata commercial and passenger vehicles for February 2016

were at 41,532 nos. higher by 3% over 40,322 vehicles sold in February 2015.

Cumulative sales (including exports) for the fiscal is at 458,654 nos., higher by 2% over 449,814

vehicles, sold last year.

Commercial Vehicles

In commercial vehicles, while M&HCV sales continued to grow at 14,872 nos., higher by 22%,

over February 2015, the Light & Small Commercial Vehicle sales has witnessed growth at

15,698 nos., higher by 10% over February 2015. The overall commercial vehicles sales for Tata

Motors in the domestic market at 30,570 nos., in February 2016, is an increase of 15%,

compared to 26,555 nos., in February 2015. This significant increase, has been enabled by the

growth in LCVs, supplementing the already prevailing MHCV growth. This is the third

consecutive month of growth in LCVs after many months, and if sustained, could see return of

growth in this segment, albeit on a low base.

Cumulative sales of commercial vehicles in the domestic market for the fiscal are at 288,895

nos., higher by 1% over last year. Cumulative LCV sales are at 150,472 nos., a decline of 13%

over last year, while M&HCV sales at 138,423 nos., were higher by 23%, over last year.

Passenger Vehicles

In February 2016, Tata Motors passenger vehicles sales were at 10,962 nos., a decline of 20%,

compared to 13,767 nos. The wholesales of passenger cars in February 2016 were lower by 21%

at 9,284 nos., compared to 11,805 nos., in February 2015 and the UV sales declined by 14% at

1,678 nos., in February 2016.


TATA MOTORS

International Operations:

With over 8.5 million Tata branded vehicles plying globally, Tata Motors is among the select

companies in the world to offer an extensive portfolio to its consumers. We have expanded our

international footprint through exports since 1961. In passenger vehicles, the company has a

strong presence in the hatchback and the sedan segment, going up to SUVs and MUVs. In

commercial vehicles, Tata Motors offers a wide spectrum of vehicles that are customized for

local conditions and meet the highest standards for quality, safety, environment norms and user

comfort. Today, the Tata Motors group is present in over 170 countries, with a worldwide

network comprising over 6,600 touch points. Tata Motors has R&D centres in UK, Italy, India

and South Korea. With vast global experience, the company brings deep understanding of

customer expectations from diverse markets, and is well positioned to cater to ever changing

autom

AFRICA:

In the continent of Africa, Tata Motors has significant presence in South Africa, Angola, Algeria,

Democratic Republic of Congo, Ghana, Kenya, Morocco, Mozambique, Nigeria, Seychelles,

Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. Africa has been a preferred

destination for Tata Motors since 1992. The roads of Africa are home to both left-hand and right-

hand drive versions of our cars, buses, SUVs and trucks. We have a manufacturing base in

Rosslyn, South Africa, which produces trucks ranging from 7 to 75 tonnes.otive norms and

consumer trends across the globe.

EUROPE:

Europe is the home of great automobile engineering and Tata Motors is proud to have a strong

presence here, through our design and development facilities – Trilix, our design and engineering

partner in Turin, Italy and the award-winning Tata Motors European Technical Centre in UK.

Europe is where our cars and trucks are benchmarked to international standards in styling,

design, craftsmanship, quality and reliability. Europe is where we create and fall in love with the

next generation of vehicles.


TATA MOTORS

RUSSIA:

Russia and the CIS form a large part of our global expansion strategy. Our manufacturing base in

Ukraine gives us access to local geographies and facilitates customisation and speed of delivery.

Our wide range of trucks and buses allows us to provide customers with the best fit vehicle. Our

local tie-ups with dealers and distributors give us the ability to provide our customers with

superior service experience.

LATIN AMERICA:

Tata Motors has been wooing customers in Latin America since 2009. Our most popular vehicles

here are our compact and mid-sized sedans including the Indigo and the Manza, our hatchback

Vista, and the Tata Xenon, our bestselling pickup. What our vehicles bring to the market are a

winning combination of power-packed performance and lower lifecycle cost of ownership.


TATA MOTORS

MARKETING STRATEGY

PRODUCT PORTFOLIO OF THE COMPANY:


TATA MOTORS

MARKETING MIX OF TATA MOTORS

MARKETING MIXPRODUCT PRICE PROMOTION PLACE

Brand Pricing Strategy Personal Selling Channels of DistributionsPackaging Pricing & Quality Advertising Physical DistributionInnovations Price & Alterations Public Relations Wholesaler & RetailersQuality Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand : Advertising is often used to make consumers aware of a product’s special low price or

its benefits. 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.

b. Packaging : A vehicle cannot have a material packaging. Here, packaging refers to

and effective assembly of features. Tata Motors provide many innovative features to

suit the target customers and the product. E.g. Tata Safari Dicor has ‘Reverse Guide

System’ which includes a weather-proof camera to help the driver while reversing the

vehicle.

c. Innovations : The various motives behind buying an automobile are Need, Prestige,

Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives

to bring new innovations in their product. Tatas have an industrial experience of over

100 years and they are well known with the Psychology of Indian customers, who

desire more at less price. This experience has helped them to develop products which

fulfill the expectations of Indian consumers.

d. Quality Control : Tata Motors have their Quality Control standards and the QC Dept.

ensures that the customer does not face any inconveniences of a defective product.

2. PRICE (Pricing Strategy, Alterations, Discounts)


TATA MOTORS

a. Pricing Strategy : The prices are fixed keeping in mind a number of factors. As

told by Mr. Desai, prices have to be at par with the prices of the competitors. Tata

Motors give a relative price advantage as compares to its competitors. The various

determinants of price are

i. Market Condition

ii. Costs incurred

iii. Profit percentage desired by the Co.

iv. Dealer Profit

b. Alterations : 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.

c. Discounts : Discounts 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.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public Relations)

a. Personal Selling : There is minimal personal selling involved. The Sales Officers

at the dealerships collect prospective customer databases and perform cold calling

to attract customers.

b. Advertising : Advertising is a form of commercial mass communication designed

to promote the sale of a product or service. Tata Motors is responsible for the

advertising of its products. The dealer does play any role in the advertising. The

various media used for advertising are T.V., Newspapers, Magazines, Hoardings,

Internet etc. The dealer conducts point-of-purchase displays to advertise the

products. The advertisements done by the Co.help the dealer to capitalize on the

market.

c. Sales Promotion : 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


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rebates, prizes, extra product, or gifts. The Co. conducts intensive sales promotion

during festivals such as festive discounts during Diwali.

d. Public Relations : Public Relations is a management function that creates,

develops, and carries out policies and programs to influence public opinion or

public reaction about an idea, a product, or an organization. The Co. takes serious

measures to maintain good public relations. The Co. follows business ethics to

ensure that the customer is satisfied and receives good service whenever and

wherever he desires

4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution : In case of vehicles, dealership method of distribution

and sales is generally adopted. Tata Motors have 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 within

these prices. As the Co. deals in commercial and passenger vehicles, there may be

a 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. and

Passenger Vehicles Dept. respectively.

Tata Motors have contracts with the Government of India and it supplies

buses and passenger vehicles, in some cases, to the Govt. Sometimes, bulk

quantities of vehicles are ordered by a Govt. Dept. or a private company. The

sales, distribution and billing of these are looked after by the Co. itself.

b. Physical Distribution : The commercial vehicles are manufactured

at Jamshedpur,Lucknow and Pantnagar whereas the passenger vehicles are

manufactured at Pune plant. From the plant, the finished product is transported to

the dealerships. The nation-wide dealership, sales, services and spare parts

network comprises over 2,000 touch points. The dealerships are strategically

located in the target and potential markets to ensure efficient and timely

availability of its products in the market.


TATA MOTORS

BRAND AMBASSADOR OF TATA MOTORS

LIONAL MESSI


TATA MOTORS

COMPITATOR ANALYSIS:

TATAMOTORS VS MARUTI SUZUKI

The first generation Swift was introduced in 2000 as a replacement for the Suzuki Cultus.

Outside Japan, the "Suzuki Ignis" name was used. Both three- and five-door hatchback body

styles were offered, although the three-door was not offered as part of the regular lineup in

Japan. The Swift was powered by a new generation of Suzuki inline-four gasoline engines, the M

family. Engine displacements of 1.3 and 1.5-litres were offered, both with a five-speed manual

transmission or optional four-speed automatic. The vehicle was available with

either front or four-wheel drive. Vehicles fitted with the 1.3-litre engine were designatedHT51S,

with the 1.5-litre version assigned HT81S.[1]

The shorter three-door body variant formed the basis of the Swift Sport in Japan, or Ignis Sport

in export markets. Introduced in 2003..

Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive

Company) is an Indian multinationalautomotive manufacturing company headquartered

in Mumbai, Maharashtra, India, and a subsidiary of the Tata Group. Its products include

passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is

the world's 17th-largest motor vehicle manufacturing company, fourth-largest truck

manufacturer, and second-largest bus manufacturer by volume.[3]

Tata Motors has auto manufacturing and assembly plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in

Argentina, South Africa, Thailand, and the United Kingdom. It has research and development

centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and in South Korea, Spain, and the

United Kingdom. Tata Motors' principal subsidiaries purchased the British premium car


https://en.wikipedia.org/wiki/Tata_Motors#cite_note-10K-3

https://en.wikipedia.org/wiki/Suzuki_Swift#cite_note-1

https://en.wikipedia.org/wiki/Four-wheel_drive

https://en.wikipedia.org/wiki/Front-wheel_drive

https://en.wikipedia.org/wiki/Suzuki_M_engine

https://en.wikipedia.org/wiki/Suzuki_M_engine

TATA MOTORS

maker Jaguar Land Rover (the maker of Jaguar, Land Rover, and Range Rover cars) and the

South Korean commercial vehicle manufacturer Tata Daewoo.


TATA MOTORS

MARKET SHARE OF TATA MOTORS

The Tata Motors Group sales for the year stood at 997,550 vehicles, lower by 2.3% as

compared to Fiscal 2014. Global sales of all Commercial Vehicles were 377,193 vehicles, while

sales of Passenger Vehicles were at 620,357 vehicles.

Tata Motors recorded sales of 504,369 vehicles, a decline of 11.5% over Fiscal 2014. Industry

grew during the year by 2.4%. However, the Company's market share decreased to 14.1% in the

Indian automotive industry from 16.5% in the previous year. The Company exported 49,936

vehicles.

Within the domestic market, the Company sold 317,780 Commercial Vehicles (CV), a decline of

15.9% from Fiscal 2014 primarily due to the decline in the LCV segment. However the critical

M&HCV truck segment has grown by 27% and the Company has been able to retain a stong

Market share of 58% in this category. Even under these difficult conditions, the Company has

been able to sustain market share in the critical M&HCV segment.

Some of the highlights for the year were:

Launched the new Intermediate and Light Commercial Vehicle (ILCV) range of trucks

christened 'ULTRA', which offers superior technology and design that ensures lowest

total cost of ownership through higher uptime because of increased driver comfort,

superior aggregates and customized requirements. The PRIMA LX range of trucks were

extended with the launch of the Multi-axle truck variants – 2523.T & 3123.T. The

Company launched a new pickup – Super Ace Mint with 1.4 L DiCOR engine. With its

unmatchable combination of performance, ruggedness, comfort, superior ride &

handling, style and best-in-class cost of ownership, the Tata Super ACE Mint will

maximise revenues for its owners and will meet requirements of intra and intercity

transport.

Launched a new trucking concept of 'TRUCK WORLD': Advanced Trucking Expo'

showcasing the Company's extensive offering from its' medium and heavy commercial


TATA MOTORS

vehicles business, all under one roof along with the Company's own service related

brands like Tata Genuine Parts, Tata Delight and Tata FleetMan.

Announced partnership with UK based Microlise for advanced Telematics and Fleet

management services ushering in the latest technology in this segment.

Conducted the Prima Truck Racing Championship Season 2 witnessed by over 45,000

spectators at India's F1 track, the Buddh International Circuit.

Celebrated 60 years of truck manufacturing at its first manufacturing and engineering

facility in Jamshedpur.

Participated strongly in the JnNURM Phase II bagging over 3500 orders and have

developed new Bus models for JnNURM including the Articulated and Hybrid buses.

The flagship program of the Company 'Humare Bus Ki Baat Hain' won several

accolades this year and over 15,000 school bus staffs were trained on school bus safety

under the program.

Launched the 'Tata SKOOLMAN', a telematics based tracking solution, aimed at

addressing pressing concerns over student safety as a standard fitment on the Tata Ultra

range of school buses.

Celebrated the roll-out of 100,000th Tata ACE ZIP at the Dharwad facility in Karnataka.


TATA MOTORS

FINANCIAL PROFILE

CAPITAL STRUCTURE OF TATA MOTORS:

Capital structure is the combination of the capital raised by the company. This combination or

mix influences the overall cost of capital. Normally capital structure will be the mix of equity

and debt. The proportion of this equity and debt to the total capital is decided by the company

according to the important because it affects the earnings per share or wealth of the shareholders.

Capital structure is the crucial decision to be taken by every business, the positives and negatives

of these decisions plays a important role in determining the future of every business. The modern

theory of capital structure was established by Modigliani and Miller (1958). According to Myers

(2001, p. 81), ‘there is no universal theory of the debt--equity choice, and no reason to expect

one’. Many proven theories about capital structure help us to understand about the debt equity

mix that the firms choose. These theories can be divided into two groups – either they predict the

existence of the optimal debt-equity ratio for each firm (so-called static trade-off models) or they

declare that there is no well-defined target capital structure (pecking-order hypothesis).

Static trade-off models understand the optimal capital structure as an optimal solution of a trade-

off, for example the trade-off between a tax shield and the costs of financial distress in the case

of trade-off theory. According to this theory the optimal capital structure is achieved when the

marginal present value of the tax shield on additional debt is equal to the marginal present value

of the costs of financial distress on additional debt. On the other hand, the pecking-order theory

suggests that there is no optimal capital structure. Firms are supposed to prefer internal financing

(retained earnings) to external funds. And when the internal funds are inadequate, the firms may

opt for debt instead of equity. Therefore there is no well-defined optimal leverage, because there

are two kinds of equity, internal and external, one at the top of the pecking order and one at the

bottom. Thus, several conditional theories of capital structure exist but very little is known about

their empirical relevance. Capital structure decision is one of the key decisions to be undertaken

by every company at the time of raising their capital. Poor decisions would result in adverse

effects. Many firms which are financially healthy have lost because of poor decisions. This paper


TATA MOTORS

focuses on the capital structure of the company during 2004 to 2013 and will examine the results

of various capital structure.

Capital Structure (Tata Motors)Period Instrument Authorized

CapitalIssued Capital - P A I D U P -

From To (Rs. cr) (Rs. cr) Shares (nos) Face Value Capital2014 2015 Equity Share 900 643.88 3218680067 2 643.742013 2014 Equity Share 900 643.88 3218680067 2 643.742012 2013 Equity Share 900 638.02 3190115771 2 638.022011 2012 Equity Share 900 634.71 3173546570 2 634.712010 2011 Equity Share 900 634.61 634613990 10 634.612009 2010 Equity Share 900 570.56 570557544 10 570.562008 2009 Equity Share 900 514.01 514008314 10 514.012007 2008 Equity Share 450 385.5 385503954 10 385.52006 2007 Equity Share 450 385.37 385373885 10 385.372005 2006 Equity Share 410 382.83 382834131 10 382.832004 2005 Equity Share 400 361.75 361751751 10 361.752003 2004 Equity Share 400 352.96 352958130 10 352.962002 2003 Equity Share 350 319.89 319784387 10 319.782001 2002 Equity Share 350 319.89 319782395 10 319.782000 2001 Equity Share 350 255.92 255856343 10 255.86


TATA MOTORS

FINANCIAL STATEMENTS OF TATA MOTORS

Report on the Financial Statements

We have audited the accompanying financial statements of TATA MOTORS LIMITED ("the

Company"), which comprise the Balance Sheet as at March 31, 2015, the Statement of Profit and

Loss, the Cash Flow Statement for the year then ended, and a summary of the significant

accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the

Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements

that give a true and fair view of the financial position, financial performance and cash flows of

the Company in accordance with the accounting principles generally accepted in India, including

the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the

Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate

accounting records in accordance with the provisions of the Act for safeguarding the assets of the

Company and for preventing and detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making judgments and estimates that are

reasonable and prudent; and design, implementation and maintenance of adequate internal


TATA MOTORS

financial controls, that were operating effectively for ensuring the accuracy and completeness of

the accounting records, relevant to the preparation and presentation of the financial statements

that give a true and fair view and are free from material misstatement, whether due to fraud or

error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

have taken into account the provisions of the Act, the accounting and auditing standards and

matters which are required to be included in the audit report under the provisions of the Act and

the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section

143(10) of the Act.


TATA MOTORS

HR POROFILEDEPARTMENT OF MANAGEMENT Page 38

TATA MOTORS

SIZE OF THE COMPANY INTERMS OF EMPLOYEE NUMBERS

Nurturing diversity and making inclusion a part of Tata’s culture is a key focus area for the

organization. Their global workforce across 100 countries comprises employees from 101

nationalities. As on 31st March 2015, their workforce comprised of 242382 permanent

employees comprising of 30.2% women. Additionally, over 37200 individuals were engaged as

retainers or contractors.

Over the years, they have cultivated a strong ‘local national’ footprint in their international

geographies, and at overseas locations (outside India), 40.1% of the workforce is comprised of

local nationals. We have invested in specialized online tools such as ‘Globe Smart’ to develop

sensitivity towards various cultures.

HR POLICIES OF TATA MOTORS

Tata Motors believes in a progressive people culture. We ensure that a judicious mix of

people is maintained in our workforce. This is achieved through hiring multi-skilled

people both from within the automobile industry and from other sectors. In addition, a

regular and consistent recruitment programme at engineering and management institutes

ensures a steady stream of high quality people getting inducted to fuel the growth plans.

We also have ongoing partnerships with Industrial Training Institutes, besides our own

professional training centres, to recruit shop-floor workforce. A clearly defined HR

strategy is based on the premise that people drive annual performance, (a short-term

goal), and also strengthen long-term organisational objectives. Programmes like

miniassessments and the Fast Track Selection Scheme (FTSS) ensure that talent is

spotted early and given an opportunity to mature into leaders. Capability development,

spearheaded by the Tata Motors Academy, has enabled knowledge-sharing through

initiatives, such as Learning Management Systems (LMS) and iTeach. The former allows


TATA MOTORS

employees to take ownership of knowledge accretion, while the latter provides a platform

for senior management to share their expertise. Enablers, such as the ‘One Tata Motors’

culture, leverage interdepartmental synergies. Therefore, greater opportunities to learn

from and contribute to the organisation are created. Combined with a rearticulated

compensation philosophy and reworked variable pay plan, these initiatives ensure that

Tata Motors remains performance-oriented and talent-driven. To drive and support our

business growth, we have increased our total workforce to nearly 23,000 people at Jaguar

Land Rover. We recruited over 6,200 Salaried, Hourly and Agency workers during the

course of the year (including the highest ever intake of over 330 graduate trainees).

Jaguar Land Rover is recognised as a preferred employer in the UK. Increasing numbers

of International Service assignments have commenced to support global operations, and a

new National Sales Company has been established in China.

We work hard to retain our talented staff, and during the year our employee turnover rate

remained low at 1.8% for the salaried population and 0.9% for the hourly population.

Relationships with employees and their representatives remain positive and constructive,

with no strikes. The 2011- 12 Employee Engagement Survey was extended to all hourly

paid employees for the first time this year, and employee satisfaction rates for salaried

employees rose to an all-time high of 65%, from 57% in the previous year. An extended

working week was introduced, with 58% of salaried staff opting to extend their working

hours.

Tata Motors has always endeavoured to offer some of the best HR practices, and the recruitment

process is no exception. The recruitment process is unique as it entails identifying talent from the

pool through various practices. Some of them can be enlisted as follows:

Opportunities for employee wards - domain wise written test, assessment centre, personal

interview.

We also select talent through Lateral Recruitment process which involves interview by HR,

subject matter expert and personal interviews.


TATA MOTORS

Group Migration Policy for our employees, which enables the group employees to explore

opportunities to work at Tata Steel from other group companies.

We provide career opportunities for down the line people and internal job postings ensuring

that the best talent pool deserves the right opportunity in bringing the best practices in the

company.

Campus Selection - B schools, T Schools - written test, psychometric test, personal

interview.

Shadow recruitment for niche senior talent

Employee relations

Tata motors is of the opinion that people are its greatest asset and has therefore adopted the best

practices for its employees.

Trade Unions: The Company believes that a healthy union is an asset for it. Trade unions are

therefore present and encouraged at all locations. All the non-officers (86% of the total

workforce) are represented by 26 independent trade unions across all locations.

Joint Consultations: Tata Motors is a pioneer of joint consultation in India. A unique system of

joint consultation has been in place in Tata Motors for more than 55 years in which both

management and employee representatives consult each other at all levels on matters relating to

the progress and prosperity of the organisation, including production, productivity, quality,

safety, welfare, training, etc. A minimum of 56 Joint Departmental Council meetings are held in

a year.

Employee development and growth

The company believes in providing continuous skill and competence upgrading of all employees

by providing access to necessary learning opportunities, on an equal and non-discriminatory

basis. As a management approach Tata Steel has identified the following strategies to meet this

challenge: (i) maximise utilisation of available employees through right skilling and (ii)

recruitment of technically qualified persons.


TATA MOTORS

70:20:10 Learning and Development Programme

The 70:20:10 concept of Learning and Development of officers has been launched with an

objective of creating a culture where every manager takes ownership for the development of

his/her subordinates. This also helps in instituting systems so that employees are trained, coached

and mentored in a systematic manner such that they acquire appropriate knowledge, skill and

attitude required by the organisation and are prepared in advance to take up higher

responsibilities.

70% of Learning and Development takes place from real life and on-the job experiences,

tasks and problem solving.

20% of Learning and Development takes place through coaching, mentoring, discussions,

guidance by superiors/experts.

10% of the learning comes from formal Class Room Training.

Job Rotation and Career PlanningIn order to eliminate drudgery and maximise the learning opportunities for our employees, robust processes have been put in place pertaining to job rotation and career planning. These processes also help raise and retain the technical capabilities within the organisation by ensuring development of officers through planned rotation to keep meaningful longevity in each position so that the executive develops deeper functional capability.

Employee Contact ProgrammeIn addition to the various Employee Satisfaction and Engagement surveys, a formal method for collecting and resolving officers’ inputs, named “Employee Contact Programme”, has been launched in 2009. The key objectives of this programme are to:

Capture employee concerns on an on-going basis Analyse concerns to identify need for policy changes Create a repository of the above data Create one to one connect with officers

Ensuring Development and Growth of Employees (EDGE)The Performance Management System called ‘Ensuring Development & Growth of Employees’ (EDGE) is one of the most important people process for executives in the organisation which cuts across all levels and sections.


TATA MOTORS

Objectives of EDGE

Align the activities and behaviours of individuals with company's corporate objectives

and values

Develop the capabilities of employees to enhance performance of individuals or

organisation


TATA MOTORS

OPERATION PROFILE

SERVICE DESIGN OR DELIVERY MECHANISM

Eliminate wastages of resources by maximising “NO INVESTMENT” projects & emphasize on

improved productivity of all operations & processes. Adopt the faster pace for deployment of all

ideas in all areas of business thro’ maximizing involvement of people Focus on accomplishing

investment projects with payback less than 2 years at faster pace & deploy across all TATA

Motors plants Jamshedpur, Lucknow & Pantanagar. At saturated performance level introduce

break thro’ improvement by adopting suitable modern technology through adequate investment

. Share the best practices & performances with vendors , suppliers , partners & other industries

& assist them to reduce their ENERGY INTENSITY …..=> ENERGY KAIZEN

Roadmap to achieve Benchmark / Global best :- Based on above results of National &

International companies, TATA Motors CVBU plant is “Highly Energy Efficient Automobile

company”. As part of continual improvement we would further reinvestigate all our processes to

achieve further cost reduction by reducing Energy consumptions at all levels. To sustain the best

achieved level. We are following robust process of assessment of performance vis a vis

comparative information / benchmark from different organisation & standards. Our emphasis

would be:- 1. To optimise the use of Resources while using appropriate and innovative method to

reduce the energy consumption in all the areas of operation on the continuous basis through

evaluation and improvement. 2. Use of Latest technologies wherever possible. 3. Maximize the

use of non-conventional Energy resources wherever possible. 4. Under climate change

initiatives, assessment & abatement measures are being taken to reduce carbon foot print through

resource conservation


TATA MOTORS

MAJOR RAW MATERIALS

The principal raw materials and components required by us for use in our vehicles are steel

sheets and plates, castings, forgings and items such as tires, batteries, electrical items and rubber

and plastic parts. We have long term purchase agreement for some critical components such as

powertrains and engines. The raw materials, components and consumables that are sourced,

include steel (sheet-metal, forgings and castings), tires and tubes, batteries, fuel injection

systems, air-oil filters, consumables (paints, oils, thinner, welding consumables, chemicals,

adhesives and sealants) and fuels. We also require aggregates like axles, engines, gear boxes and

cabs for our vehicles, which are manufactured either by ourselves or by our subsidiaries and

affiliates. Most commodities have had huge price volatility during fiscal 2009. We established

contracts with the commodity suppliers to cover our own as also our suppliers’ requirements to

moderate the effect of such high volatility. Special initiatives were also undertaken to reduce

material consumption through value engineering and value analysis techniques.

MAJOR SUPPLIERS&VENDORS

We have an extensive supply chain for procuring various components. We also outsource

many of the manufacturing processes and activities to various suppliers. In such cases, we

provide training to outside suppliers who design and manufacture the required tooling and

fixtures.

Tata AutoComp Systems Ltd., or TACO, in which now we have 30.56% ownership stake,

manufactures auto components and encourages the entry of internationally acclaimed auto

component manufacturers into India by setting up joint ventures with them. Some of these joint

ventures include: Tata Johnson Controls Limited for seats, Knorr Bremse CV Systems for

commercial vehicle air brakes, Tata Yazaki Autocomp Limited for wiring harnesses, JBM

Sangwoo Limited for pressed components and Tata Toyo Radiators Limited for radiator

assemblies. These joint ventures supply components for our products.

We have embarked upon a vendor management program that includes vendor base

rationalization, vendor quality improvement and vendor satisfaction surveys. As part of driving


TATA MOTORS

continuous improvement in procurement, we have integrated our system for electronic

interchange of data with our suppliers with the ERP. This has facilitated real time information

exchange and processing to manage our supply chain more effectively.


TATA MOTORS

STRATEGIC ANALYSIS

STATARGIES ADOPTED BY TATA MOTORS LTD

From peak sales of over 27,000 units in the January-March 2012 quarter to under 4,000 in the

three months to December 2013, Tata Motors' Nano hasn't quite lived up to the hype and

expectations built up since its launch in mid-2009. Former Tata group chairman Ratan Tata now

chairman emeritus recently said the "cheap car" image had hampered the Nano's progress, and

earlier this weekTata Motors took one of its first steps to erase that "stigma".

The attempt over the past year has been to attract youngsters. In 2012, only a fifth of the buyers

fell in the age bracket of 18-34; that share more than doubled to 55% in 2013, although it hasn't

translated into increased sales. "The Nano needs to be aspirational rather than spartanly

utilitarian," says Ankush Arora, senior vice-president and head commercial, passenger vehicle

business unit, Tata Motors. Here are the five prongs of the strategy to reverse the sales

downtrend:

Focus on youth: To build a youthful and aspirational value around the brand, Tata Motors

through its 'awesomeness' branding and marketing campaign worked with fashion

designer Masaba Gupta on the launch of the Twist. The makeover campaign is an attempt to get

youngsters to look at the Nano as a fashion accessory. "Young consumers want complete

accessorisation in the car like alloy wheels, different interiors, spoilers and graphic designs,"

explains Arora. The company promises more on-ground activities and showcases at colleges to

woo the youth.

Fresh positioning: From a people's car and the world's cheapest, the Nano is now positioned as

the smart city car for young achievers. Arora says while the perception of a cheap car has still

not gone away, the profile of the consumer has tremendously improved — along with the

features in the car. Based on market research, Tata Motors has segmented potential customers

into first-time buyers, those looking for a replacement or an additional car and others who want


http://economictimes.indiatimes.com/topic/Masaba%20Gupta

TATA MOTORS

more features and performance. Near-term plans include a variant with automated transmission

to strengthen the smart city car positioning.

Communication for a consumer connect: The idea is to give the brand a far more emotive

personality and the new advertisement campaign of 'awesomeness' is in that direction. The

campaign has electronic dance music DJ Akshay Sarin, celebrity dancer Lauren Gottleib, and

professional golfer Neha Tripathi to celebrate how these young achievers 'live life on their own

terms'. These young achievers will help create an emotional connect with the target buyer.

Consumers will get opportunities to interact online or on-ground with the young achievers,

leading to attachment to the brand, reckons Arora.

Revamping distribution and reach: The new dealer identity will make the consumer experience

more exciting. The dealerships will have better displays, video walls, trained workforce to

reinforce the smart city car image and all content will be centrally controlled. There are 95

standalone Nano dealerships and the company has no plans to increase the number this year.

Changed pricing: At its launch, much was made of the Rs 1 lakh price tag. The price points

have been redefined and the new variants of Nano are expected to priced in the range of Rs 1.75

lakh to Rs 3.25 lakh. "A consumer is looking for the right value equation, a full package, and not

a cheap car," explains Arora. He adds that from the three trim levels, 60% of the Nano sales were

from the power steering and AC variant. Now, armed with five trim levels, the company plans to

offer four engine options.

An electric car and a hybrid are being worked on at the company's UK R&D base, the Tata

Motors European Technical Centre. The higher price tag allows for the Nano to be packed with a

host of features: twin glove boxes, keyless entry, a dashboard-integrated music system with

Bluetooth connectivity, a bigger steering wheel and remote central locking. By 2015, Tata

Motors hopes to be ready with a more powerful engine.

Will the repositioning transform the Nano's fortunes? Says VG Ramakrishnan, managing

director, Frost & Sullivan, a consultancy: "Repositioning the brand will work in conjunction with

a revamped product. While Tata Motors has done some cosmetic changes, there is a need for a

substantial upgradation of the interiors for larger volumes." He adds that the Nano should be

Tata Motors' answer to the Suzuki Alto, which is far more refined in terms of power and

technology..


http://www.zigwheels.com/newbikes/Suzuki

TATA MOTORS

SWOT ANALYSIS OF TATA MOTORS

The company began in 1945 and has produced more than 4 million vehicles. Tata Motors

Limited is the largest car producer in India. It manufactures commercial and passenger vehicles,

and employs in excess of 23,000 people. This SWOT analysis is about Tata Motors.,

STRENTH: The internationalisation strategy so far has been to keep local managers in new acquisitions, and

to only transplant a couple of senior managers from India into the new market. The benefit is that

Tata has been able to exchange expertise. For example after the Daewoo acquisition the Indian

company leaned work discipline and how to get the final product ‘right first time.’

The company has a strategy in place for the next stage of its expansion. Not only is it focusing

upon new products and acquisitions, but it also has a programme of intensive management

development in place in order to establish its leaders for tomorrow.

The company has had a successful alliance with Italian mass producer Fiat since 2006. This has

enhanced the product portfolio for Tata and Fiat in terms of production and knowledge

exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies

have an agreement to build a pick-up targeted at Central and South America.

WEAKNESS: The company’s passenger car products are based upon 3rd and 4th generation platforms, which

put Tata Motors Limited at a disadvantage with competing car manufacturers.

Despite buying the Jaguar and Land Rover brands (see opportunities below); Tata has not got a

foothold in the luxury car segment in its domestic, Indian market. Is the brand associated with

commercial vehicles and low-cost passenger cars to the extent that it has isolated itself from

lucrative segments in a more aspiring India?

One weakness which is often not recognised is that in English the word ‘tat’ means rubbish.

Would the brand sensitive British consumer ever buy into such a brand? Maybe not, but they

would buy into Fiat, Jaguar and Land Rover (see opportunities and strengths).


TATA MOTORS

Opportunities:

In the summer of 2008 Tata Motor’s announced that it had successfully purchased the Land

Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World’s luxury car

brand have been added to its portfolio of brands, and will undoubtedly off the company the

chance to market vehicles in the luxury segments.

Tata Motors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004 for around

USD $16 million.

Nano is the cheapest car in the World – retailing at little more than a motorbike. Whilst the

World is getting ready for greener alternatives to gas-guzzlers, is the Nano the answer in terms of

concept or brand? Incidentally, the new Land Rover and Jaguar models will cost up to 85 times

more than a standard Nano!

The new global track platform is about to be launched from its Korean (previously Daewoo)

plant. Again, at a time when the World is looking for environmentally friendly transport

alternatives, is now the right time to move into this segment? The answer to this question (and

the one above) is that new and emerging industrial nations such as India, South Korea and China

will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities.

However the company has put in place a very proactive Corporate Social Responsibility (CSR)

committee to address potential strategies that will make is operations more sustainable.

The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly

engines. The bus has optional organic clutch with booster assist and better air intakes that will

reduce fuel consumption by up to 10%...

Threats: Other competing car manufacturers have been in the passenger car business for 40, 50 or more

years. Therefore Tata Motors Limited has to catch up in terms of quality and lean production.

Sustainability and environmentalism could mean extra costs for this low-cost producer. This

could impact its underpinning competitive advantage. Obviously, as Tata globalises and buys

into other brands this problem could be alleviated.

Since the company has focused upon the commercial and small vehicle segments, it has left itself

open to competition from overseas companies for the emerging Indian luxury segments. For


TATA MOTORS

example ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will

build 5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at the

Indian market include Ford, Honda and Toyota. In fact the entire Indian market has become a

target for other global competitors including Maruti Udyog, General Motors, Ford and others.

Rising prices in the global economy could pose a threat to Tata Motors Limited on a couple of

fronts. The price of steel and aluminium is increasing putting pressure on the costs of production.

Many of Tata’s products run on Diesel fuel which is becoming expensive globally and within its

traditional home market.


TATA MOTORS

MCKINSEY’S 7S FRAMEWORK:

The McKinsey 7S Framework is a management model developed by well-known business

consultants Robert H. Waterman, Jr. and Tom Peters (who also developed the MBWA--

"Management by Walking Around" motif, and authored In Search of Excellence) in the 1980s.

This was a strategic vision for groups, to include businesses, business units, and teams. The 7 Ss

are structure, strategy, systems, skills, style, staff and shared values.

Strategy: the plan devised to maintain and build competitive advantage over the

competition.

i. Make customers successful

ii. Excel through innovation and teamwork

iii. Respect the individual

iv. Deliver on commitments

Structure: the way the organization is structured and who reports to whom. In wipro

Employees may also get help or advice from:

i. Supervisor

ii. Supervisor’s supervisor


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Systems: the daily activities and procedures that staff members engage in to get the job

done. In Wipro Employees are unsure about the proper course of action and need advice.

Shared Values: called "super ordinate goals" when the model was first developed, these

are the core values of the company that are evidenced in the corporate culture and the

general work ethic.

Style: the style of leadership adopted.

i. Focus on Global Game Changes and Players

ii. Focus on Virtual Teams that work asynchronously across date and time zones.

Staff: the employees and their general capabilities. Wipro has continually sought to

implement practices to enhance the engagement, capability and competitiveness of our

talented, global workforce. These practices are aligned to different phases of hiring,

assimilation, learning, growth and retention and shaped by the Spirit of Wipro values.

The Spirit of Wipro values weave the thread that ties all Wiproites together and also

shapes leadership behaviour. Employees’ feedback on the Spirit of Wipro values is a key

component in our Employee Perception Survey as well as in our Wipro Leaders’

Qualities 360-degree feedback process.

Skills: the actual skills and competencies of the employees working for the company. In

Wipro Over the years, our focus on participative engagement has increased and their

programs have been more closely aligned to cater to their diverse and multi-generational

workforce. Employee feedback has led to the review of and changes in legacy initiatives

like the Unified Competency Framework (UCF) to make it more relevant to the needs of

the current and future workforce. The erstwhile UCF certification is currently being

revamped. Through mailers, awareness sessions and announcements on the intranet and

forums such as Yammer, these changes are being communicated to employees.


TATA MOTORS


TATA MOTORS


TATA MOTORS


TATA MOTORS


TATA MOTORS
