Marketing strategies of Tata Motors, how the largest automobile manufacturer of India sells its products

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MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF UNDER GRADUATE DEGREE
MARKETING STRATEGIES OF
SUBMITTED BY:
ANUJ GUPTA
BBA (2014-2017)
ROLL NO. : E-65
Faculty Guide: Ms. RajshreeSingh Student Name: Anuj Gupta
Designation: AssistantProfessor Enrollment No.: A3906414554
Course & Batch: BBA (G)/2014-17
Amity University, Uttar Pradesh

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CERTIFICATE OF ORIGIN
This is to certify that I, Mr. Anuj Gupta, a student of under graduate degree in BBA
(2014-2017), Amity School of Business, Noida has worked under the able guidance
and supervision of Ms. Abhilasha Singh, Assistant professor.
This Minor Project report has the requisite standard for the partial fulfilment the
Under Graduate Degree in Business Administration. To the best of our knowledge no
part of this report has been reproduced from any other report and the contents are
based on original research.
I am aware that in case of non-compliance, Amity School of Business is entitled to
cancel the report.
Signature
Name of Student: Anuj Gupta
Enrollment No.: A3906414554
Signature of Project Coordinator Signature of
Faculty Guide

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Acknowledgment
I express my sincere gratitude to my faculty guide, Ms. Rajshree Singh, Assistant
Professor, for her able guidance, continuous support and cooperation throughout my
project, without which the present work would not have been possible.
Signature

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Research Methodology
1. Research objectives
i. To study the various marketing strategies employed by TATA Motors
ii. To recommend any alternative actions that can be taken by the
company
2. Research design
Research design refers to the manner of conducting the research. The design
of my research is exploratory, which is based on secondary data.
3. Research limitations
Despite the fact that I've attempted to scrutinize on the said goals however
much as could be expected, it experiences certain constraints. The essential
constraint is the time allotment, which because of being short, the exploration
couldn't have been sufficiently exhaustive. The other is that because of the
sources being auxiliary in nature, the data is pretty much in view of
suspicions.

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TABLE OF CONTENTS
Chapter Number Subject Page Number
1. Research Methodology 4
2. Introduction 6
3. Company History 11
4. SWOT Analysis 22
5. 4P’s of Tata Motors 25
6. STP Analysis 29
7. Tata Motors vs. Competitors 32
8. Findings 35
9. Suggestions 36
10. Conclusion 36

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Introduction
The Indian auto industry is one of the largest in the world with an annual production
of 23.37 million vehicles in FY 2014-15, following a growth of 8.68 percent over the
last year.
The automobile industry accounts for 7.1 per cent of the country's gross domestic
product (GDP).
The Two Wheelers segment with 81 per cent market share is the leader of the Indian
Automobile market owing to a growing middle class and a young population.
Moreover, the growing interest of the companies in exploring the rural markets
further aided the growth of the sector. The overall Passenger Vehicle (PV) segment
has 13 per cent market share.
India is also a prominent auto exporter and has strong export growth expectations
for the near future. In FY 2014-15, automobile exports grew by 15 per cent over the
last year. In addition, several initiatives by the Government of India and the major
automobile players in the Indian market are expected to make India a leader in the
Two Wheeler (2W) and Four Wheeler (4W) market in the world by 2020.
Market Size
The industry produced a total 14.25 million vehicles including PVs, commercial
vehicles (CVs), three wheelers (3W) and 2W in April-October 2015 as against 13.83
in April-October 2014, registering a marginal growth of 3.07 per cent year-on-year.
The sales of PVs grew by 8.51 per cent in April-October 2015 over the same period
last year. The overall CVs segment registered a growth of 8.02 per cent in April-
October 2015 as compared to same period last year. Medium & Heavy Commercial
Vehicles (M&HCVs) registered very strong growth of 32.3 per cent while sales of

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Light Commercial Vehicles (LCVs) reduced by 5.24 per cent during April-October
2015 year-on-year.
In April-October 2015, overall automobile exports grew by 5.78 per cent. PVs, CVs,
3Ws and 2Ws registered growth of 6.34 per cent, 17.95 per cent, 18.59 per cent and
3.22 per cent respectively in April-October 2015 over April- October 2014.
Investments
In order to keep up with the growing demand, several automakers have started
investing heavily in various segments of the industry during the last few months. The
industry has attracted foreign direct investment (FDI) worth US$ 13.48 billion
during the period April 2000 to June 2015, according to data released by
Department of Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India
are as follows:
● Global auto major Ford plans to manufacture in India two families of engines
by 2017, a 2.2 litre diesel engine codenamed Panther, and a 1.2 litre petrol
engine codenamed Dragon, which are expected to power 270,000 Ford
vehicles globally.
● The world’s largest air bag suppliers Autoliv Inc, Takata Corp, TRW
Automotive Inc and Toyoda Gosei Co are setting up plants and increasing
capacity in India.
● General Motors plans to invest US$ 1 billion in India by 2020, mainly to
increase the capacity at the Talegaon plant in Maharashtra from 130,000 units
a year to 220,000 by 2025.
● US-based car maker Chrysler has planned to invest Rs 3,500 crore (US$ 525
million) in Maharashtra, to manufacture Jeep Grand Cherokee model.

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● Mercedes Benz has decided to manufacture the GLA entry SUV in India. The
company has doubled its India assembly capacity to 20,000 units per annum.
● Germany-based luxury car maker Bayerische Motoren Werke AG’s (BMW)
local unit has announced to procure components from seven India-based auto
parts makers.
● Mahindra Two Wheelers Limited (MTWL) acquired 51 per cent shares in
France-based Peugeot Motocycles (PMTC).
Government Initiatives
The Government of India encourages foreign investment in the automobile sector
and allows 100 per cent FDI under the automatic route.
Some of the major initiatives taken by the Government of India are:
● Government of India aims to make automobiles manufacturing the main
driver of ‘Make in India’ initiative, as it expects passenger vehicles market to
triple to 9.4 million units by 2026, as highlighted in the Auto Mission Plan
(AMP) 2016-26.
● In the Union budget of 2015-16, the Government has announced to provide
credit of Rs 850,000 crore (US$ 127.5 billion) to farmers, which is expected to
boost the tractors segment sales.
● The Government plans to promote eco-friendly cars in the country i.e. CNG
based vehicle, hybrid vehicle, and electric vehicle and also made mandatory of
5 per cent ethanol blending in petrol.
● The government has formulated a Scheme for Faster Adoption and
Manufacturing of Electric and Hybrid Vehicles in India, under the National
Electric Mobility Mission 2020 to encourage the progressive induction of
reliable, affordable and efficient electric and hybrid vehicles in the country.

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● The Automobile Mission Plan (AMP) for the period 2006–2016, designed by
the government is aimed at accelerating and sustaining growth in this sector.
Also, the well-established Regulatory Framework under the Ministry of
Shipping, Road Transport and Highways, plays a part in providing a boost to
this sector.
Road Ahead
India’s automotive industry is one of the most competitive in the world. It does not
cover 100 per cent of technology or components required to make a car but it is
giving a good 97 per cent, as highlighted by Mr Vincent Cobee, Corporate Vice-
President, Nissan Motor’s Datsun.
Leading auto maker Maruti Suzuki expects Indian passenger car market to reach four
million units by 2020, up from 1.97 million units in 2014-15.
The Indian automotive sector has the potential to generate up to US$ 300 billion in
annual revenue by 2026, create 65 million additional jobs and contribute over 12 per
cent to India’s Gross Domestic Product, as per the Automotive Mission Plan 2016-26
prepared jointly by the Society of Indian Automobile Manufacturers (SIAM) and
government.

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TATA MOTORS LTD.
COMPANY HISTORY
Tata Motors Ltd is India's largest automobile company. The company is the leader
in commercial vehicles in each segment, and among the top three in passenger
vehicles with winning products in the compact, midsize car and utility vehicle
segments. They are the world's fourth largest truck manufacturer, and the world's
second largest bus manufacturer.
The company is engaged in the development, designing, manufacturing,
assembling and sale of vehicles, including financing thereof, as well as sale of
related parts and accessories. They manufacture commercial vehicle, three
passenger vehicle, truck and bus. They have a portfolio of automotive products,
ranging from sub-1 ton to 49 ton gross vehicle weight (GVW), trucks (including
pickup trucks) and from small, medium, and large buses and coaches to passenger
cars, including the car, the Tata Nano.
The company's segments include automotive, and others, which include
information technology (IT) services, construction equipment manufacturing,
machine tools and factory automation solutions, high-precision tooling and plastic
and electronic components for certain applications, and investment business.
The company's passenger cars include the Indica, the Indica Vista, the Indigo and
the Indigo Marina. Jaguar produces four car lines: XK, XF, XJ and X-Type. They

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manufacture a number of utility vehicles (UV), including the Sumo, and the sports
utility vehicle (SUV), Tata Safari. Also, they manufacture a variety of light
commercial vehicles (LCVs), including pickup trucks, trucks and buses with GVW
of between 0.7 ton and 7.5 tons. This also includes the Ace, a mini-truck with a 0.7
ton payload, the Magic, a passenger variant for commercial transportation and the
Winger. They also manufacture a variety of medium and heavy commercial
vehicles (M&HCVs), which include trucks, buses, dumpers and multi-axled
vehicles with GVW of between 9 tons to 49 tons.
The company's manufacturing plants are situated at Jamshedpur (Jharkhand),
Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand),
Dharwad (Karnataka) and Sanand (Gujarat). Through their subsidiaries and
associate companies, the company has operations in the UK, South Korea,
Thailand and Spain.
Tata Motors Ltd was incorporated in the year 1945 with the name Tata Engineering
and Locomotive Co Ltd for manufacturing locomotives and other engineering
products. In the year 1948, the company introduced steam road roller in
collaboration with Marshall Sons (UK). In the year 1954, they made collaboration
with Daimler Benz AG, West Germany for manufacturing medium commercial
vehicles. In the year 1959, they set up a Research and Development Centre at
Jamshedpur. In the year 1961, they started to export their products and the first
truck being shipped to Sri Lanka.
In the year 1966, the company set up the Engineering Research Centre at Pune to

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provide impetus to automobile Research and Development. In the year 1977, they
manufactured first commercial vehicle in Pune. In the year 1983, they commenced
manufacturing of Heavy Commercial Vehicle. In the year 1985, the company
produced first hydraulic excavator in collaboration with Hitachi. In the year 1986,
they produced the indigenously designed light commercial vehicle Tata 407
followed by 608. In the year 1989, they introduced third LCV model, Tata Mobile
206.
In the year 1991, the company launched first indigenous passenger car, Tata Sierra
and in the next year, they launched Tata Estate. In the year 1993, the company
signed a joint venture agreement with Cummins Engine Co. Inc. for the
manufacture of high horsepower and emission friendly diesel engines. In the year
1994, the company launched Tata Sumo and LPT 709. During the year, the
company signed a joint venture agreement with Daimler - Benz / Mercedes - Benz
for manufacture of Mercedes Benz passenger cars in India. Also, they signed a joint
venture agreement with Tata Holset Ltd, UK for manufacturing turbochargers to
be used on Cummins engines. In the year 1995, they launched Mercedes Benz car
E220 and in the next year, they launched Tata Sumo deluxe.
In the year 1997, the company launched Tata Sierra Turbo and in the next year,
they launched Tata Safari and Indica in the market. In the year 2000, they
launched Indica 2000 and CNG buses. In the year 2001, they launched Indica V2,
CNG Indica and Tata Safari EX. In the year 2002, the company signed a product
agreement with MG Rover of the UK. Also, they launched Petrol version of Indica
V2, EX series in Commercial vehicles, Tata Sumo Series and Tata Indigo. In the

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year 2003, they launched Tata Safari Limited Edition CityRover, 135 PS Tata Safari
EXi Petrol and Tata SFC 407 EX Turbo in the market. In July 29, 2003, the name
of the company was changed from Tata Engineering Co Ltd to Tata Motors Ltd.
In the year 2004, the company acquired Daewoo Commercial Vehicle Company
and renamed it as Tata Daewoo Commercial Vehicle Co. Ltd. This company
launched the heavy duty truck 'NOVUS' in Korea. Also, the company launched Tata
Indica V2, Tata LPT 909 EX, Sumo Victa and Indigo Marina during the year. In the
year 2005, the company acquired 21% stake in Hispano Carrocera SA, Spanish bus
manufacturing Company. The company launched branded buses and coaches,
namely Starbus and Globus in the market. Also, they launched Tata Ace,•Indigo
SX series, Indica V2 Turbo Diesel, Tata TL 4X4 and Tata Novus. During the year,
the company inaugurated a new factory at Jamshedpur for Novus. Also, they
unveiled Tata Xover at the 75th Geneva Motor Show.
In the year 2006, the company made a joint venture with Marcopolo, Brazil for
manufacturing fully built buses & coaches for India & markets abroad. They
launched Indica V2 Xeta and new Indigo range. Also, they unveiled new long wheel
base premium Indigo & X-over concept at Auto Expo 2006. In the year 2007, the
company and Thonburi Automotive Assembly Plant Co. (Thonburi) formed a joint
venture company in Thailand to manufacture, assemble and market pickup trucks.
They inaugurated Tata-Fiat plant at Ranjangaon. They launched long wheel base
Indigo XL, Tata Spacio, Magic, Winger, Sumo Victa Turbo DI, Indica V2 Turbo
with dual airbags & ABS and Safari DICOR 2.2 VTT range.

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During the year 2007-08, the company unveiled the TATA Nano, the world's least
expensive car at the Auto Expo 2008 in New Delhi. Subsequently, the car was also
unveiled at the Geneva Motor Show and received international acclaim. They
commenced production of TATA Ace from their manufacturing facility at
Uttarakhand during the year.
During the year, the company developed new products for the M&HCV passenger
carrier sub-segment and displayed in the Auto Expo 2008, a 28 seater bus and an
air conditioned low floor bus developed through their joint venture - Tata
Marcopolo Motors Ltd. In the LCV segment, the company introduced two new
products - Magic and Winger, which hold a strong potential to shape the future of
commercial passenger transportation in India.
Further, the company unveiled the 1 Ton and CNG variant of Ace, Cargo Panel van,
Xenon XT - a lifestyle pickup truck and Winger Executive office concept vehicle in
the Auto Expo 2008. They showcased their new range of tactical and armoured
vehicles for military and paramilitary forces in the Defence Expo 2008. These
include Tata Light Specialist Vehicle, Light Armoured Troop Carrier, Tata 8x8
HMV and the armoured Tata Safari.
During the year 2007-08, the company signed an agreement with Fiat Group
automobiles SpA Italy and Fiat India Automobiles Pvt Ltd (FIAPL) for
establishment of joint venture to manufacture passenger cars engines and
transmissions at Ranjangaon in India. They sold 15% stake each, in their subsidiary
companies, HV Axles Ltd (HVAL) and HV Transmissions Ltd (HVTL). In March

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2008, the Company introduced Tata Xenon- 1 Ton pickup truck in Thailand
through its subsidiary Tata Motors (Thailand) Ltd.
In June 2, 2008, the company acquired the businesses of Jaguar and Land Rover (a
part of Premier Automotive Group of Ford Motor Co.) for USD 2.3 billion. Jaguar
and Land Rover are in the business of development, manufacture and sale of high
end luxury cars and SUVs respectively. The acquisition includes the ownership of
three major manufacturing plants, two advanced design centres in UK a worldwide
sales network, Intellectual Property Rights (including perpetual royalty free
licenses) and Brands and Trademarks.
During the year 2008-09, the company partially divested their stake in Tata
AutoComp Systems Ltd an associate company, from 50% to 26%. Also, they sold
their investment in Tata Teleservices Ltd. During the year, the company launched
28 new commercial vehicles. Among the new products launched during the year
were LPT 3118 - a truck with lift axle, CNG variants of the Ace, Magic and Xenon,
new range of LCV buses manufactured by Tata Marcopolo Motors and the ICV 909
bus.
The company also completed the execution of their first order of 650 low floor
buses to Delhi Transport Corporation (DTC). They have also bagged a second order
of 1625 similar buses from DTC to be executed in financial year 2009-10, the total
order value of which is over Rs 2200 crore. In May 2009, they also unveiled the
World Truck range of their next generation heavy trucks.

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During the year 2009-10, the company acquired 79% shares in Hispano Carrocera,
S A by way of exercise of the existing call option, through mutual agreement with
the other shareholder, Investalia S. A., Spain, for a consideration of Euro 2 million
(Rs 1371 lakh). Consequently, Hispano Carrocera, S A has become a 100%
subsidiary of the company. Also, the company sold 20% stake in Telco
Construction Equipment Company Ltd (Telcon) to Hitachi Construction Machinery
Co Ltd. The company now holds 39.75% stake in Telcon.
During the year, the company launched the new heavy truck range Prima. Also,
they launched the new range of buses (based on the Prima platform with bodies
being made by Tata Marcopolo displayed at the Delhi Auto Expo in January 2010).
In small commercial vehicles, they launched the Ace EX and Super Ace.
In June 2010, the company inaugurated the factory for the Nano mini car at
Sanand, in the western state of Gujarat. The factory is having an initial capacity of
producing 250,000 cars per year. During the year 2010-11, the company launched
the Aria, a premium crossover with high-end features such as 4x4, Torque on
Demand, ESP, six airbags. They launched BS IV compliant variants of the Indica
and the Indigo CS, the Indica eV2 and Indigo eCS with segment leading fuel
efficiencies. These vehicles are powered by the Company's 1.4L CRAIL engine. The
company Elan, a high end variant of the Indigo Manza sedan. They launched
Venture, a Multi Purpose Vehicle (MPV) on the Ace platform. The company
expanded the Prima range launched during the previous year with the introduction
of the Prima Construck range of tippers in the market. Also, the company launched
the all new Jaguar XJ, the new 4.4 V8 diesel Range Rover and the new 2.2 diesel

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Land Rover.
In September 2010, the company acquired 80% stake in Trilix Srl., Turin (Italy), a
design and engineering company. The company increased their shareholding in
Tata Precision Industries Pte. Ltd from 49.99% to 78.39% by subscribing to an
additional 28.4% share of Tata Precision Industries Pte Ltd, Singapore on February
15, 2011. Tata Precision Industries Pte Ltd holds 100% shares of Tata Engineering
Services Pte Ltd, hence Tata Engineering Services Pte Ltd also became a subsidiary.

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SWOT Analysis
Strengths:
● The brand is very well established.
● Tata’s management is strengthened by the collective experience of its partners
and acquired companies.
● 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.
● Creation of an entirely new segment with TATA NANO.
● Acquisition of Jaguar and Land Rover.
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.
● Tata has not got a foothold in the luxury car segment in its domestic market.
● Positioning of TATA NANO .
● One weakness which is often not recognised is that in English the word 'tat'
refers to items which are cheap and of bad quality. A brand sensitive British
consumer might think twice before going for such a brand.
Opportunities:
● The Nano could sell well in other geographic markets like that of China.
● Jaguar and Land Rover provide Tata with an opportunity to establish itself in

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the luxury segment in the upcoming years.
● No major player in the electric car segment in the domestic market so ‘Indica
Vista electric’ and ‘Megapixel’ could just be the right answer for Indian
consumers.
Threats:
● Maruti Suzuki and Hyundai are major rivals in the small car market.
● Powerful competitors for the luxury market including Honda, Toyota, Ford
and Volkswagen are beginning to push into the Indian market.
● Tata’s competitive price advantage will be under pressure as environmental
regulations are tightened and material costs increase.

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4P’s of Tata Motors
Product
● Tata has a very wide range of products. It has passenger cars, utility vehicles,
Trucks, Commercial passenger Carriers and Defence Vehicles.
● Brand : The products of Tata Motors have many special characteristics to
them, but when consumers think of it, they not only think of its features, but
they may also associate it with quality, performance, class. All of these
meanings have been added to the product by advertising. Consumers
frequently buy the product not only for its functional characteristics but also
because they want to be identified with the image associated with the brand.
Tata Motors have been successful in creating and maintaining a professional
brand image.
● 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.
● Innovations : The various motives behind buying an automobile are Need,

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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.
● 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.
Price
● The prices of Tata motors are generally affordable acceptable by the general
public at large. Tata always have something for the lower class people with
Nano being their trump card. Giving discount every month and special
promotion for certain type of vehicle also one of the strong strategy use by
Tata Motors. Discount can be made from Company’s profit or from dealer’s
profit at certain range.
● Pricing strategies:
○ Penetration pricing
○ Low pricing policy with minimum profit margin.
○ Though the one lakh price tag is not fixed by TATA group (in case of
Tata Nano), it was the word of mouth of people which fixed that range.
This expectation of people creates a big challenge for the company.

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Place
● 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.
● 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.
Promotion
● Personal Selling : There is minimal personal selling involved. The Sales

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Officers at the dealerships collect prospective customer databases and
perform cold calling to attract customers.
● 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.
● 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 rebates, prizes, extra product, or gifts. The Co. conducts intensive
sales promotion during festivals such as festive discounts during Diwali.
● 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.

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STP Analysis
Segmentation
● Segmenting is the process of dividing the market into segments based on
customer characteristics and needs.
● The main activity segmenting consists of four sub-activities. These are:
1. determining who the actual and potential customers are
2. identifying segments
3. analyzing the intensity of competitors in the market
4. selecting the attractive customer segments.
● The need for segmenting a market is based on the fact that no market is
homogeneous. For one product the market can be divided in different
customer groups. The variables used for this segmenting in these groups are
usually geographical, psycho-graphical, behavioral and demographic
variables. This results in segments which are homogeneous within and
heterogeneous between each other. When these segments are known, it is
important to decide on which market to target.
● TATA Motors basically segments the market based on the following markets :-
○ Geography - Whether the customers live in urban cities or suburban
areas
○ Income
○ Uses - Commercial, Private etc.

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Targeting
● Targeting is the process of choosing the most attractive segment on which the
product or service is to be marketed.
After the most attractive segments are selected, a company should not directly
start targeting all these segments -- other important factors come into play in
defining a target markets.
● The four sub activities within targeting are:
○ defining the abilities of the company and resources needed to enter a
market
○ analyzing competitors on their resources and skills
○ considering the company’s abilities compared to the competitors'
abilities
○ deciding on the actual target markets.
● The major target segments of Tata Motors are:-
○ Low Income and Middle Income groups
○ People living in cities
○ Commercial use vehicles
Positioning
● When the list of target markets is made, a company might want to start on
deciding on a good marketing mix directly. But an important step before
developing the marketing mix is deciding on how to create an identity or
image of the product in the mind of the customer. Every segment is different
from the others, so different customers with different ideas of what they
expect from the product.

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● The present situating of TATA Motors is "a car organization with reasonable
costs that you can depend on for its item execution, morals and, and profound
quality".

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Tata Motors vs. Competitors

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Findings
1. Tata Motors is the third largest company in the passenger vehicles segment
and the leader in the commercial vehicle segment.
2. The share of Tata Motors in passenger vehicles segment is low as compared to
majot competitors Maruti and Hyundai, the former being the market leader.
This maybe attributed to a number of factors:-
a. Better products and services by competitors
b. Better marketing strategies of competitors
3. However, the sales of Tata Motors in the passenger vehicle segment are slowly
increasing. This maybe because of:-
a. Customers preferring pocket friendly cars that provide comfort to
costly cars
b. Tata Emerging as a viable alternative to market leaders Maruti and
Hyundai.
4. On the other hand, the sales of Tata Motors in the commercial sector, where it
is a market leader, is slowly decreasing. It is losing out to its main competitor,
Mahindra & Mahindra.
5. The two wheeler market is still unexplored by Tata Motors, so it is presents a
new market.

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Suggestions
1. Find new and innovative ways to retain leadership in commercial segment.
2. Two-wheeler presents a large market with unexplored potential. The company
should consider entering that market.
Conclusion
As per the findings, the marketing strategies of Tata Motors are fairly successful. In
recent years however, they have become even more so successful, especially in the
assenger vehicle sector. This shows that the customers are beginning to see Tata as a
viable and good alternative to the market leaders.
However, the market share of Tata in the commercial vehicle sector, where it is the
leader, is slowly decreasing and the company is losing its foothold. This is mainly
because of saturation of the segment for the company and its shifted focus towards
passenger vehicles.