Marketing Strategy of Tata Motors
It was previously known as Tata Engineering and Locomotive Company (TELCO) but later named Tata Motors. It is a famous Indian-based multinational automotive manufacturing company, headquartered in Mumbai. Tata Motors is a member of the Tata Group.
They manufacture and sell numerous automotive products such as sports cars, commercial cars, vans, construction equipment, buses, military vehicles, and trucks. In 2016, it was graded 226th in Fortune 500 Global.
Segmentation, Targeting and Positioning of Tata Motors:
Being a multinational automotive company, the company doesn’t follow one approach or formula. They mainly target rural parts by offering Land Rover, Nano, and Jaguar. They target all members of the country, whether rural or urban. People from the middle and lower-middle-class are the main customers of Tata Motors and the company mostly targets them. They also attract those people who want to shift from 2-wheeler to 4-wheeler.
They have offerings for everyone. For example, if you are from the middle class, they have Tata Nano for you. If you want to buy for agriculture transport, they have a wide range of mini trucks. Jaguar, Indigo and Tata Indica are for commercial purposes. Therefore, they use a mix of targeting and marketing strategies to target the consumers and fulfill their requirements.
Mission: We want to improve the quality of life by inventing innovative mobility solutions.
Tagline: Connecting Aspirations
Competitive Advantage of Tata Motors:
As an Indian company, they have plenty of advantages in the form of low labor wages and affordable raw materials. Just because of this, they only target the Indian market to provide cheap but better quality products to every segment of the customers. They have a competitive advantage over other brands due to Indian flagship. Economical vehicles are their main strength. They manufacture vehicles at lower costs and sell at higher profits in the emerging markets.
The availability of parts and inexpensive material helps the company to expand its business. For example, they have a strong R&D sector that supports them in manufacturing innovative and reliable vehicles. That’s why they have a competitive edge. They have various research centers that are continuously working on the efficiency, improvement, and style of vehicles. Moreover, for entering into different markets, the company has acquired several foreign companies. Tata Motors is an unbeatable brand with strong penetration and recognition in the domestic market. They have achieved such immense success through product development, powerful research, and development, international mergers, and marketing.
BCG Matrix of Tata Motors
The instar category has Indica, Safari Dicor, Magic, Manza, and Winger because they are widely used commercial vehicles. Sumo, Indigo CS, and Safari are in the cash cow category, while Zest and Nano are in the question mark category.
Distribution Strategy of Tata Motors
The company carries a strong distribution network with 576 car dealers across the country. Such a strong dealers’ network helps the company sell its vehicles. You can easily access Tata vehicles from anywhere in the country. Due to this reason, its domestic sales are growing just because of robust distribution strategy and network.
Brand Equity
Tata Motors aims to meet the growing needs of the automotive industry by offering the latest vehicles and modifications. Accordingly, they are enhancing reliability, comfort, capacity, and safety features to make their cars more attractive. On the other hand, Tata Motors is investing huge sums in product development to add value.
Moreover, they have been planning to introduce more vehicles in the commercial and luxury car segments. For example, its Nano car has achieved the status of the most inexpensive car in the world. Indeed, this is the only way to grab the greatest market share.
Competitive Analysis of Tata Motors
Indeed, the Indian automotive industry is overcrowded with a lot of international and national players. So, companies like Honda, Maruti Suzuki, Hyundai, and Toyota give tough competition to the company by grabbing each other’s share.
Market Analysis
No one has any doubt that Tata Motors is a market leader with the highest market share. On the one hand, good thing is that it has been showing positive signs. On the other hand, the company is trying to recover its market share with a new initiative, Turnaround, 2.0. By penetrating into other markets or countries, the company can also secure a big market share and reach.
Customer Analysis of Tata Motors
The main customers of Tata Motors are from the middle and lower-middle classes. So, they are from the youth and business class segment looking for modern, reliable, safe, and comfortable vehicles. They want to buy a car that satisfies their everyday needs while giving amazing mileage.
Promotional Strategy
The company divides its marketing strategy into 2 segments,
- ATL (Above the line):
It includes,
- Print ads
- TV
- Radio
- BTL (Below the line):
It includes,
- Loan fair
- Rural fair
- Corporate display activities
- Society activities
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