Sales B Supriya

7/30/2019 Sales B Supriya

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Supriya,

06120043


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Q1: You are the Marketing Head of Tata Motors Ltd. Conduct an

environmental scan of the business environment in which TataMotors operates. Analyze factors that impact upon the Tata

Motors ability to satisfy and retain existing customers. Use the

results of the environmental scan, to plan strategies to improve

the organizations ability to retain customers.


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Intro. The group was established as part of the Tata Group in 1945. Now the

Head office is located at Mumbai.

They started the passenger vehicles manufacturing unit in 1991, and

now they rank second in India passenger vehicle market.

They acquired Daewoo commercial vehicle Company in South Korea in

2004.

They also had collaborations with companies such as Thonburi

Automotive in 2006, which allowed them to manufacture and market

pickup trucks in Thailand.

The hottest news is their acquisition of Jaguar and Land Rover from

Ford. Tata paid 2.3 billion dollars to Ford for the two brands that costFord 5.3b dollars.

Tata Motors Jamshedpur plant rolls out its two millionth truck19 Feb,

2013,Consolidated NetRevenue at Rs.46,090 crores on 14 Feb, 2013


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Environmental Scan

Environmental scanning is one component of the global environmental

analysis. Environmental monitoring, environmental forecasting and

environmental assessment complete the global environmental analysis.

Environmental scanning can be defined as the study and interpretation

of the POLITICAL, ECONOMIC, SOCIAL, TECHNOLOGICAL, ECOLOGICAL

AND LEGAL events and trends which influence a business, an industry or

even a totalmarket.

The factors which need to be considered for environmental scanning

are events, trends, issues and expectations of the different interest

groups. Issues are often forerunners of trend breaks.


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Political Tata Motors operates in multiple countries across Europe, Africa, Asia,

the Middle East, and Australia, it needs to pay close attention to the

political climate but also laws and regulations in all the countries it

operates in while also paying attention to regional governing bodies.

In 2004 it acquired Daewoo Commercial vehicles company in Korea

which helped Tata motors to gain some international ground.

On March 26, 2008, Tata Motors reached an agreement with Ford to

purchase Jaguar and Land Rover. In order to be capable of this

acquisition, Tata Motors must have a full comprehension of the

governing bodies and laws regulating commerce in the home country,

the United Kingdom, but also in countries Jaguar and Land Roveroperate in.

The foundation of the companys growth internationally is a deep

understand of economic stimulation, customer needs, and individual

government regulations and laws.


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Economic

Operating in five continents across the world, Tata Motors functions

with a global economic perspective while focusing on each individual

market.

With over 70% of market share in India and it had a 0.81% of market

share globally. Tata Motors introduced Tata Indica a small sized car in 1998, which fits

5 people with a very little boot space.

In 2010 Tata Motors are pallning to raise around $700 Million in its

shares sales.

Tata motors is the first car manufacturing company to produce thecheapest road car in the world the Nano, which is priced at

approximately $2000.


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Social

Undoubtedly, the beliefs, opinions, and general attitude of all the

stakeholders in a company will affect how well a company performs.

For this reason, Tata Motors tends to use an integration and rarely

separation technique with foreign companies they acquire.

Every time it builds a new manufacturing plant it recruits staff andlabourers who are local to the area this enables the local people to

acquaint to the company and it creates huge job opportunities as well.

Tata motors induce more than 2% of its annual turnover to research and

development of new and innovative equipments to keep the balance

between the ecology and machines and reducing the pollution of thevehicles it manufactures.


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Technology Tata Motors and its parent company, the Tata Group, are ahead of the

game in the technology field. The Tata Group as a whole has over 20publicly listed enterprises and operates in more than 80 countries world-

wide.

The foundation of the companys growth is a deep understanding of

economic stimuli and customer needs, and the ability to translate them

into customer-desired offerings through leading edge R&D(Tata). Employing 1,400 scientists and engineers, Tata Motors Research and

Development team is a head of the pack in Indias market and right with

the rest of the field internationally.

In the European markets Tata motors have initiated a new method of

scrapping the old cars, here they inform there customers to bring in

their old vehicles to recycle it for free and they use there own centres

and subsidiaries to dismantle the old vehicles which makes most of the

parts to be serviced and fitted into other vehicles.


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Ecological

Tata Motors has led the Indian automobile industry's anti-pollutionefforts through a series of initiatives in effluent and emission control.

The company introduced emission control engines in its vehicles in India

before the norm was made statutory.

Tata motors have a good standard of manufacturing vehicles adhering

to the euro and Indian standards of emission and it also invested into

creating greener cars by researching in alternate fuel methods and low

consumption of fuel which creates a balance between the eco systems.

All the vehicles come with low emission a filter which convert and

reduces the carbon monoxide content emitted by the vehicles.


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Legal

Tata in recent years have been adhere to the governments laws andtaxations that the Indian government has awarded Tata Motors as thebest car manufacturer.

There have been serious frictions in the state of Bihar where it planned

to build its new car Nanos manufacturing plant but the stategovernment insisted the Tata motors to shift its base to some otherstate, which Tata motors did by moving its plan to the state of Gujarat.

These are some of the legal issues faced by Tata Motors


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SWOT ANALYSIS

SWOT analysis (alternately SLOT analysis) is a strategic planning method

used to evaluate the Strengths, Weaknesses/Limitations, Opportunities,

and Threats involved in a project or in a business venture.

It involves specifying the objective of the business venture or project and

identifying the internal and external factors that are favourable and

unfavourable to achieve that objective.


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STRENGTHS

1. Strong Domestic player (Indian market): Tata has a strong presence inIndia and is a key manufacturer of commercial vehicles. It is a market

share of ~70% which has almost remained constant. Also, Tata Motors

is Indias largest automobile manufacturer by revenue.

2. It is a demand driven, and customer-oriented, taking care of

customers preferences and taste.3. Long list of portfolios: Its products include passenger cars, trucks, vans

and coaches. It is worlds 4th biggest truck producer, it is also worlds

second biggest bus producer.

4. Global Presence: Tata Motors has been in the process of acquiring

foreign brands to increase its global presence. Through acquisition,

Tata has operations in the UK, South Korea, Thailand and Spain.

Among these acquisitions is Jaguar Land Rover, a business comprising

two struggling iconic British brands that was acquired from the Ford

Motor Company in 2008.


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WEAKNESS

1. Return on Investment on TATA motors shares in low.2. Tata motors products are not considered as luxurious. The products

are generally targeted for economy class rather than for luxury.

3. Safety standards are not maintained/ often ignored. This has led to

diminish of public image of the TATA automobiles (eg Tata Nano).

4. Though Tata is present in many countries it has only managed to

create a large consumer base in the Indian Subcontinent, namely

India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing

consumer base in Italy, Spain and South Africa.

FRIDAY, APRIL 9, 2010: TATA NANO

caught fire


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OPPORTUNITY1. In the summer of 2008 Tata Motor's announced that it had

successfully purchased the Land Rover and Jaguar brands from FordMotors for UK 2.3 million.

2. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle

business in 2004 for around USD $16 million.

3. Nano is the cheapest car in the World - retailing at little more than amotorbike.

4. 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?5. 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%.


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THREATS1. Other competing car manufacturers have been in the passenger car

business for 40, 50 or more years. Therefore Tata Motors Limited hasto catch up in terms of quality and lean production.

2. Environmental Regulation: Sustainability and environmentalism could

mean extra costs for this low-cost producer. This could impact its

underpinning competitive advantage.

3. Intense competition: Since the company has focused upon thecommercial and small vehicle segments, it has left itself open to

competition from overseas companies for the emerging Indian luxury

segments.

4. Rising cost of manufacturing: 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.

5. Low safety standards can hamper the public trusts it has already

attained which may prove fatal to its domestic market.


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Conclusion

Tata motor company has been a fore runner in car manufacturing inIndia. With the market share of 70% it has a potential to capture more

and since the company had serious issues with its rivals it has proved to

be winning the tests.

Apart from its financial part the Tata motors have given back to the

community by manufacturing cars which are far cheaper than any othercar manufacturing company could produce.

Organisation has acquainted with the company in order to maintain the

ecological system of the planet by manufacturing low emission vehicles.

In recent years Tata motors has been venturing in to new international

grounds by acquiring and jointly venturing with similar manufacturing

companies.


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Q 2: A new online shopping store is being launched.

Study the existing sites (naaptol.com, India timesshopping.com, myntra.com etc.) and prepare a

complete marketing communication plan for

awareness/reach of the above. Highlight the promotion

plan for the same in your city.


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Marketing Communication Plan

Marketing communications (marcom) include customer-facingmaterials such as brochures, press releases, Web sites, and trade showpresentations. The proximity of marcom planning to the customermakes it one of the most important activities that a companyundertakes. Thoughtfully written marcom plans:

Keeping our company speaking with one voice across a vast number of

products, regions, and customer interactions. Enable diverse teams of people to create integrated communications

vehicles.

Helping our messages rise above the din of the marketplace andconsistently resonate with their target audiences.

Giving our better results for your expenditures of time and money.


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Marketing Communication Plan

for EASY SHOPPY . COM Budget (25 lac)

Analyze target Audience

Competition

Opportunities for communication

Prioritize

Cost Adjustment


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Analyze target Audience Online shoppers had many reasons for choosing their computers over

the mall. 81.5% said they like the convenience, 73.6% like skipping the

crowds, 58.7% like the prices, and 47% like the variety.

In general, our online shopping has always targeted to middle class,

Upper middle class and Higher class women and men.

In order to shop online, one must be able to have access to a computer

and most of the time, own a credit card. This technology separates

social classes and their ability to shop.

According to research found in the Journal of Electronic Commerce, if

we focus on the demographic characteristics of the in-home shopper, ingeneral, the higher the level of education, income, and occupation of

the head of the household, the more favourable the perception of non-

store shopping.


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Competition

Amazon Flip cart

E-bay

Snap deal

Naaptol

Every competitor targets the same audience with one computer andcredit card holder

So we are coming with one extra feature of big e-library and withHoliday bookings also on special days..


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Opportunities for communication TV Ads

Paper Ads

Digital Banner Ads

Magazine Ads

Video posting

Extra benefits like calendar or one card which explains about site

features and a quote based on purchase of the customer


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Marcomm and reach( promotion)

Discounts and offers, Points (promotion for Middle class)

T.V ads, Digital Ads (Social Media for Upper Middle Class)

Best customer service Assurance ( Higher class)


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Cost Adjustment TV Ads(2.5 lac in local channels)

Paper Ads(2.5 lac)

Digital Banner Ads(5 lacs)

Magazine Ads(2.5 lac)

Video posting(free in all social sites)

Extra benefits like calendar or one card which explains about site

features and a quote based on purchase of the customer(50 thousand)


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Goal or mission

Our goal of marketing communications is to build awareness of a

business, its products, and its position through customer-facing

materials such as brochures, press releases, Web sites, and trade show

presentations.

Planning an integrated and consistent cross-team approach to these

activities one that reinforces a company's message with target

audiences and motivates customers to buy is the marketing

communications manager's top responsibility.


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Documents

Sales B Supriya