marketing strategies of tata motors

Nano to ride on innovative marketing

Nano to ride on innovative marketing

http://www.tata.com/media/reports/inside.aspx?artid=7wzQgIGpR6g= >view

The Tata Nano will ride on a clutch of innovative marketing ideas when it rolls into showrooms across the country. The Rs 1 lakh car, which broke new ground in design, engineering and production processes, will opt for “cost-effective and innovative use of media,” say people with knowledge of the Nano marketing strategy.

To make the car more easily accessible to people, the Tata Motors team will sell the Nano not just through Tata car dealerships across the country, but also through conventional retail outlets like Westside and Croma.

Westside is a lifestyle retail brand and Croma is an electronic megastore. Both are owned by the Tata group. Westside and Croma outlets will display the Nano and also take bookings. Also available will be a whole range of Nano merchandise like baseball caps, T-shirts and key chains, among others.

Carrying forward its vendor partnership production strategy, Tata Motors will share promotion of the Nano brand with its multiple PSU bank partners. These PSU financiers will promote the Nano brand during booking jointly with Tata Motors and on their own.

The Nano’s overall marketing strategy will use conventional media in an unconventional manner. Unlike most small cars, Nano won’t be big on advertising. There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. The Tata team is working on Nano news in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chatrooms on the Net, Nano pop-ups on major websites and Nano conversation on Facebook, Orkut and blogspaces.

According to people in the ad industry with direct knowledge of the Nano’s marketing strategy, the campaign will be cost-effective and innovative so that Nano becomes synonymous with anything “small, cute and brief.” “The idea is to make the Nano part of our everyday lingo like ‘see you after a nano,’ it’s a totally word-of-mouth campaign,” said a person familiar with the Nano marketing strategy.

Tata Motors has appointed Rediffusion for creative content in the Nano campaign. Lodestar will handle media buying for the Rs 1 lakh car. “The Nano is a huge brand and one of the most interesting accounts in the automobile business,” said the COO of a top ad agency based in Delhi. “However, it is still not clear just how big the account will be.”
...

Tata Indica V2 Xeta: Competing in the Indian Small Car Market

Tata Indica V2 Xeta: Competing in the Indian Small Car Market

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG177.htm >view

Abstract:

This case is about the marketing strategy undertaken by Tata Motors Limited, (the market leader in commercial vehicles in India, and one of the major players in the passenger vehicles segment), in 2006 to sustain and enhance its market share in the burgeoning passenger car market. In January 2006 the company launched the Indica V2 Xeta Petrol (Xeta) car as a refurbished version of its existing petrol car Indica V2 Petrol MPFI. According to the company, Xeta was to benefit the customer by better meeting their needs compared to existing options in the market - specifically by rendering better fuel efficiency at a competitive price. Indica was an umbrella brand under which Tata Motors had developed both diesel and petrol cars.


Though the diesel driven Indica was performing well, its petrol counterpart - Indica V2 Petrol MPFI, had not reaped the intended results. Through Xeta, the company intended to create a unique brand identity in the customer's mind for the petrol variant of Indica.

Immediately after the launch of Xeta in January 2006, the passenger car business unit of Tata Motors reported a growth of 15 percent over January 2005 by selling the highest number of passenger cars till then. The Indica brand grew by 18.7 percent which was attributed mainly to the launch of Xeta. This success also coincided with the growing attractiveness of India as a global hub for small cars. The entry of Tata Motors' immediate rivals like Maruti Udyog Limited and Hyundai Motor India Limited into the diesel segment of the small car market was also expected to pose a strong challenge for the company.

This case discusses the rationale behind the development and launch of the Xeta. It also examines the product, pricing, distribution, and promotional strategies undertaken in this regard and the challenges faced by the company in sustaining its market share in the Indian passenger car market.
Issues:

» Understand the strategy adopted by Tata Motors to sustain the Indica brand in the highly competitive small car market in India

» Understand the rationale behind the launch of Indica V2 Xeta as an extension of the Indica umbrella brand

» Analyze the various marketing aspects that Tata Motors had to focus on in order to establish the Xeta in the Indian small car market
...

marketing strategies of tata motors

Nano to ride on innovative marketing

http://www.tata.com/media/reports/inside.aspx?artid=7wzQgIGpR6g= >view

The Tata Nano will ride on a clutch of innovative marketing ideas when it rolls into showrooms across the country. The Rs 1 lakh car, which broke new ground in design, engineering and production processes, will opt for “cost-effective and innovative use of media,” say people with knowledge of the Nano marketing strategy.

To make the car more easily accessible to people, the Tata Motors team will sell the Nano not just through Tata car dealerships across the country, but also through conventional retail outlets like Westside and Croma.

Westside is a lifestyle retail brand and Croma is an electronic megastore. Both are owned by the Tata group. Westside and Croma outlets will display the Nano and also take bookings. Also available will be a whole range of Nano merchandise like baseball caps, T-shirts and key chains, among others.

Carrying forward its vendor partnership production strategy, Tata Motors will share promotion of the Nano brand with its multiple PSU bank partners. These PSU financiers will promote the Nano brand during booking jointly with Tata Motors and on their own.

The Nano’s overall marketing strategy will use conventional media in an unconventional manner. Unlike most small cars, Nano won’t be big on advertising. There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. The Tata team is working on Nano news in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chatrooms on the Net, Nano pop-ups on major websites and Nano conversation on Facebook, Orkut and blogspaces.

According to people in the ad industry with direct knowledge of the Nano’s marketing strategy, the campaign will be cost-effective and innovative so that Nano becomes synonymous with anything “small, cute and brief.” “The idea is to make the Nano part of our everyday lingo like ‘see you after a nano,’ it’s a totally word-of-mouth campaign,” said a person familiar with the Nano marketing strategy.

Tata Motors has appointed Rediffusion for creative content in the Nano campaign. Lodestar will handle media buying for the Rs 1 lakh car. “The Nano is a huge brand and one of the most interesting accounts in the automobile business,” said the COO of a top ad agency based in Delhi. “However, it is still not clear just how big the account will be.”
...

Tata Indica V2 Xeta: Competing in the Indian Small Car Market

http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG177.htm >view

Abstract:

This case is about the marketing strategy undertaken by Tata Motors Limited, (the market leader in commercial vehicles in India, and one of the major players in the passenger vehicles segment), in 2006 to sustain and enhance its market share in the burgeoning passenger car market. In January 2006 the company launched the Indica V2 Xeta Petrol (Xeta) car as a refurbished version of its existing petrol car Indica V2 Petrol MPFI. According to the company, Xeta was to benefit the customer by better meeting their needs compared to existing options in the market - specifically by rendering better fuel efficiency at a competitive price. Indica was an umbrella brand under which Tata Motors had developed both diesel and petrol cars.


Though the diesel driven Indica was performing well, its petrol counterpart - Indica V2 Petrol MPFI, had not reaped the intended results. Through Xeta, the company intended to create a unique brand identity in the customer's mind for the petrol variant of Indica.

Immediately after the launch of Xeta in January 2006, the passenger car business unit of Tata Motors reported a growth of 15 percent over January 2005 by selling the highest number of passenger cars till then. The Indica brand grew by 18.7 percent which was attributed mainly to the launch of Xeta. This success also coincided with the growing attractiveness of India as a global hub for small cars. The entry of Tata Motors' immediate rivals like Maruti Udyog Limited and Hyundai Motor India Limited into the diesel segment of the small car market was also expected to pose a strong challenge for the company.

This case discusses the rationale behind the development and launch of the Xeta. It also examines the product, pricing, distribution, and promotional strategies undertaken in this regard and the challenges faced by the company in sustaining its market share in the Indian passenger car market.
Issues:

» Understand the strategy adopted by Tata Motors to sustain the Indica brand in the highly competitive small car market in India

» Understand the rationale behind the launch of Indica V2 Xeta as an extension of the Indica umbrella brand

» Analyze the various marketing aspects that Tata Motors had to focus on in order to establish the Xeta in the Indian small car market
...

SWOT Analysis - Tata Motors Limited

http://www.marketingteacher.com/SWOT/tata_motors_swot.htm >view

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.
Strengths

* 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.

Weaknesses

* 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); Tat 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).

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 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.
...

SUVs: M&M, Tata Motors Gear Up For Integrated Marketing Strategy

http://www.financialexpress.com/news/suvs-m&m-tata-motors-gear-up-for-integrated-marketing-strategy/93437/ >view

Mumbai: : Competition is hotting up in the sports utility vehicle segment (SUV) in India once again. Even as Mahindra & Mahindra Ltd is in the process of rolling out an integrated marketing plan to announce the relaunch of Scorpio, Tata Motors is drawing up an aggressive marketing strategy to popularise its recently-launched petrol variant of Tata Safari.

For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes a series of press advertisements and a television commercial.

As for the rationale behind the relaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing & sales) Rajesh Jejurikar: “After conducting an extensive market research (with AC Nielson), we upgraded our existing model with new features. However, the positioning of the brand will remain the same so the adline will continue to be the same—‘Nothing Else Will Do.’”

The company plans to focus on press ads to highlight the new features and improved fuel efficiency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting roadshows and ground promos. Till now we have sold over 20,000 Scorpios since we launched this brand. With this improved version, we will phase out the old brand,” he adds.

In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV, says Mr Jejurikar.

Tata Motors is gearing up to launch a new multi-media ad campaign to announce the new variant of Tata Safari, the petrol version. On Tata Motors new marketing strategy, says Ogilvy & Mather India clients service director Sharmila Malekar: “To announce the launch of Tata Safari (petrol variant), we will be launching a multi-media ad campaign within a month. The new campaign will include, press ads, TVCs and radio advertising. There will be a new adline too.”

At present, the baseline for Tata Safari is ‘Make Your Own Roads’. In addition to mass media advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari Explorer Club to promote the new avatar of Tata Safari.

In the Indian automobile industry, SUVs today account for only 15 per cent of the total market unlike western countries where it is almost 80 per cent.
...

SWOT Analysis - Tata Motors Limited

SWOT Analysis - Tata Motors Limited

http://www.marketingteacher.com/SWOT/tata_motors_swot.htm >view

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.
Strengths

* 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.

Weaknesses

* 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); Tat 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).

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 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.
...

SUVs: M&M, Tata Motors Gear Up For Integrated Marketing Strategy

SUVs: M&M, Tata Motors Gear Up For Integrated Marketing Strategy

http://www.financialexpress.com/news/suvs-m&m-tata-motors-gear-up-for-integrated-marketing-strategy/93437/ >view

Mumbai: : Competition is hotting up in the sports utility vehicle segment (SUV) in India once again. Even as Mahindra & Mahindra Ltd is in the process of rolling out an integrated marketing plan to announce the relaunch of Scorpio, Tata Motors is drawing up an aggressive marketing strategy to popularise its recently-launched petrol variant of Tata Safari.

For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote the new avatar of Scorpio. Created by Interface Communications, the mass media campaign includes a series of press advertisements and a television commercial.

As for the rationale behind the relaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president (marketing & sales) Rajesh Jejurikar: “After conducting an extensive market research (with AC Nielson), we upgraded our existing model with new features. However, the positioning of the brand will remain the same so the adline will continue to be the same—‘Nothing Else Will Do.’”

The company plans to focus on press ads to highlight the new features and improved fuel efficiency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be hosting roadshows and ground promos. Till now we have sold over 20,000 Scorpios since we launched this brand. With this improved version, we will phase out the old brand,” he adds.

In addition, Mahindra & Mahindra has recently launched a nationwide talent search programme titled ‘Scorpio Speedster With Timex’ in 10 cities across the country. Through this initiative, the company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty SUV, says Mr Jejurikar.

Tata Motors is gearing up to launch a new multi-media ad campaign to announce the new variant of Tata Safari, the petrol version. On Tata Motors new marketing strategy, says Ogilvy & Mather India clients service director Sharmila Malekar: “To announce the launch of Tata Safari (petrol variant), we will be launching a multi-media ad campaign within a month. The new campaign will include, press ads, TVCs and radio advertising. There will be a new adline too.”

At present, the baseline for Tata Safari is ‘Make Your Own Roads’. In addition to mass media advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari Explorer Club to promote the new avatar of Tata Safari.

In the Indian automobile industry, SUVs today account for only 15 per cent of the total market unlike western countries where it is almost 80 per cent.
...