ACKNOWLEDGEMENT I the student of NAGINDAS KHANDWALA COLLEGE OF COMMERCE, have a great pleasure in presenting my efforts of developing a complete project in a very satisfactory and appreciable manner. My effort has been a success due to the co- operation of the entire department without which the project of this magnitude given restrictions of time could not have been possible. I owe a depth of gratitude to my project guide PROF V.G SUCAHK without his help, expert guidance and invaluable Co- operation; this project would not have been possible. I am greatly thankful to my honorable Principle and the management for providing the facilities to complete the project. 1
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ACKNOWLEDGEMENT
I the student of NAGINDAS KHANDWALA COLLEGE OF
COMMERCE, have a great pleasure in presenting my efforts of developing a
complete project in a very satisfactory and appreciable manner. My effort has
been a success due to the co-operation of the entire department without which
the project of this magnitude given restrictions of time could not have been
possible. I owe a depth of gratitude to my project guide PROF V.G SUCAHK
without his help, expert guidance and invaluable Co-operation; this project
would not have been possible. I am greatly thankful to my honorable Principle
and the management for providing the facilities to complete the project.
1
TABLE OF CONTENT
Introduction.
History.
Objectives.
Summary
Values and purposes
List of major manufacturer.
strategies
Company profile.
Analysis.
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Introduction:
Established in 1945 by jamsheddji Tata .
In 1945 company began with manufacturing of locomotives.
Formally it was known as ‘TELCO’.
Now M.R Ratan Tata is chairman of tata Motors.
It is a multinational corporation, head quatered in Mumbai.
It is india’s largest company in automobile and commertial vehicle.
Tata motors ranked 19th largest automaker in world.
It ranked 2nd largest manufacturer of commercial vehicle.
It have 70% market share in domestic commercial vehicle.
It has auto manufacturing and assembling plants in Jamshedpur.
Tata motors one of India's largest private sector companies with a turnover of over Rs 80
billion, is the country's leading commercial vehicle manufacturer and has significant presence
in the multi-utility and passenger car segments. Tata motors were established on September
1, 1945, originally for the manufacture of Steam Locomotives at Jamshedpur. By 1954, the
company had diversified into the manufacture of commercial vehicles in collaboration with
Daimler Benz, Germany. By the time their collaboration ended in 1969, Tata motors had
become an independent producer of Medium Commercial Vehicles with a great degree of
indigenization. It had also developed the capability of designing, testing and manufacturing
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such vehicles. The widely successful Tata Indica, an Euro 2 compliant vehicle, is the
country’s first indigenously designed, developed and manufactured passenger car. Tata
Motors followed that up with the Tata Indigo, a sedan that was launched in December 2002.
The company also makes several other passengers vehicles, including the Safari, Sumo and
Sierra.The company’s products have received wide acceptance not only in India but also in
the Middle East, Asia, Africa, Australia, Latin America and Europe.
Strategies
1. HR strategy:
Caring,,show,respect,,,compassion and humanity for colleagues.
Work cohesively with colleagues across the group.
Encourage self sufficiency.
Hiring practices.
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Providing various offers to employees.
No salary cuts and increase in resources and development.
2. Operational strategy:
Reducing number of shifts.
Quality management- quality management is crucial to effective
operational management. Most recent advancement is quality, such
as bench marking and total quality management have resulted in
advancement to operations management as well.
Inventory management- innovative methods such as Just in time
inventory control, can save cost.
More products and more services can be offered to customer more
quickly.
3. Marketing strategy;
Advertising - advertising is the most common way to make public
aware of the new product.
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Besides, advertising also helps to create a brand image. Over the
years, tata motors have been successful in creating a brand image
for itself and also especially they select some famous stars a stheir
spokesperson.
Pricing – the price policy of tata motors is always appreciated by
the public.
Tata motors make use of strategies such as discount and special
promotions every now and then.
It gives discount based on the company’s profit or from dealers
profit at a certain ranges.
4. Distribution strategy;
Tata motors business has been extended to the overseas i.e
Europe,Africa, U.S, Australia. Hence it has no show rooms in india
and outside of india.
The exclusive shoe rooms are the best distribution channels for tata
itself.
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Sales promotion- tata motors have felt its presence across india and
abroad with its showrooms
Branding- in case of tata motors the branding strategy used is
corporate name assigned with individual product name and the
individual individualizers the new product.
Joint venture ;
Tata moters has formed 51:49 joint venture in bus body with MARCOPOLO
of brazil.
It has also formed a venture with Fiat and gained access to FIAT diesel
engine technology.
Joint venture with jaguar and Range Rover.
Present and future challenges :
Tata relies heavily on its sales in india.
.competitons has aggressive launches.
Joint ventures of competitors.
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VOLVO group and Eicher Motors joint venture.
Ashok leylands’s acquisition with Avia.
The joint venture between Ashok Leyland and NISSAN motors.
Areas of business
The company manufactures medium, heavy and light commercial vehicles, multi-utility
vehicles and passenger cars. In the year ending March 2001, the company’s revenues from its
four manufacturing plants at three locations in India were Rs. 81.64 billion (US $ 1.73
billion). In 2000, they were Rs. 89.61 billion. (US $ 1.9 billion) {The average exchange rate
has been taken as Rs 47.0 to one US dollar.}
In the year ended 31 March 2001, the company’s total exports were worth about Rs 7.22
billion (US $ 153.6 million), against about Rs 6.09 billion (US $ 129.5 million) in the
previous year.
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Locations
The company’s manufacturing plants in India are at Jamshedpur, Pimpri and Chinchwad near
Pune in Maharashtra, and Lucknow in Uttar Pradesh. Land has been acquired at
Dharwad(Karnataka) to build a fifth plant.
Collaborations
The company has technical tie-ups with:
The Institute of Development in Automotive Engineering (IDEA), S.P.A., Italy, for
assistance in small car body design and styling;
Le MoteurModerne, France, for the development of diesel and petrol engines for
passenger cars.
ANALYSIS
Tata Motors is highest selling car company in India and is the four wheeler manufacturer in the world. As the case is every company has it strengths and weaknesses and Tata Motors is no Exception: -
STRENGTHS
Market Leader in terms of sales and turnover
. A wide network of dealers across the nation
. A wide network of authorized service stations at different parts of the country
. A wide variety of product portfolio
. Very strong brand image of making fuel efficient and reliable cars
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High product and brand recall among the customers infect Tata is the
first choice among the majority customers.
Tata Motors has already established its brand in the automobile segment
in India and other International markets. It is now the leader in this
industry with majority of market share.
Tata Motors produces low cost, fuel efficient vehicles in India. It has
targeted normal middle class person who is feasible to buy a car for his
family. It has launched Tata Indica, a passenger car in 1998 which
became the largest selling car in the segment 2 years after its launch.
Tata Motors has spread widely across the country. With 3500 touch
points, the company has easy and fast access to its network of dealers,
sales, services and spare parts in almost every areas.
The human resource of Tata Motors is very strong with around 24000
employees.
Tata Motors has its own manufacturing plants in India.
WEAKNESS
Major weakness of Tata are
Not a strong player in the rural market
Very few models at the lineup stage
Resources and development of Tata Motors is weak
Not a Strong Player in the Premium Market
It’s a non player in scooter market which is huge even though that industry is going
through arough pace.
The rate of return on Tata Motors shares is low which in turn affects its
growth in financial terms amidst investors.
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Tata Motors is still behind the technology advancements despite having
large R&D
Department in the country. It is still producing vehicles in the old
generation platforms without any additional developments in the
engineering department. Customers expect new technologies which Tata
motors fail to meet. It also affects its competitive advantage over its
rivals.
While most of the other car manufacturers in the country has
concentrated on the luxury car segment, Tata Motors remain isolated
from luxury car market which is a disadvantage to the company.
Tata Motors fails to meet the safety and emission standard norms as
regulated by the Society of Indian Automobile Manufacturers (SIAM).
OPPORTUNITIES
It’s a growing market thus company has high growth potential in future
Premium segment is still not fully exploited with right product Tata Motors can do
wonders
Neighboring countries markets are not exploited fully
)Need to tap African and European market.
Since Tata Motors has bought one of the world's luxurious car brands
Jaguar and Landrover from Ford Motors officially in 2008 for a
whooping £2.3million(GBP), it has increased its possibility of gaining a
substantial amount of market share in the luxury car segments. These
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added acquisitions to Tata's portfolio will certainly gain competitive
advantage.
Tata Motors has launched a low cost car Nano which is targeted towards
the customers who have low purchasing power. It has also planned to
launch its Nano in other countries which is an opportunity to grow
globally.
Tata Motors can install additional safety features such as dual air bags to
increase its customer satisfaction levels.
It should focus strongly on the luxury car segments also.
Since Nano is doing well on the Indian roads and the demand is rising, the
production of Nano cars should be increased which reduces the long waitlists
for Nano
THREATS
Entry of new players
.New companies entering in the car market will pose a considerable threat
Competitors becoming aggressive with new product launches and high marketing
pitch
.AggressiveMaruti and Hyundai posses another threat
NO tie up with any other company can lead to losses
Since Tata Motors has bought one of the world's luxurious car brands
Jaguar and Landrover from Ford Motors officially in 2008 for a
whooping £2.3million(GBP), it has increased its possibility of gaining a
substantial amount of market share in the luxury car segments. These
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added acquisitions to Tata's portfolio will certainly gain competitive
advantage.
Tata Motors has launched a low cost car Nano which is targeted towards
the customers who have low purchasing power. It has also planned to
launch its Nano in other countries which is an opportunity to grow
globally.
Tata Motors can install additional safety features such as dual air bags to
increase its customer satisfaction levels.
It should focus strongly on the luxury car segments also.
Since Nano is doing well on the Indian roads and the demand is rising,
the production of Nano cars should be increased which reduces the long
waitlists for Nano.
TELCO currently has three products in its Passenger Car division namely,
15a. Tata Indica;
b. Tata Indigo
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c. Tata Safari
It is in the process of coming out with another member in the passenger car
family, the all-new Indica Sedan, set out to storm the Indian Mid-Size
Passenger car segment, which would be launched in the last quarter of 2002.
Confirming to International standards all these vehicles are available with
various features such as petrol & diesel versions, 2-wheel and 4-wheel drives
etc.
TELCO currently has three products in its Multi-Utility vehicle division namely,
a.Tata Sumo
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b.Telco Sport
c.Telco line Pickup Vans
All these vehicles come only in diesel-engine versions and are quite popular on the Indian
roads, especially on the highways and in the rural areas. They are known for their build
quality, reliability, ruggedness, and the various uses that they can be put.
They are used as people carriers, as emergency vans, goods carriers, pick-up vehicles and so
many more uses.mThe utility pick-up vans of Tata International are made for all kind of
terrains and are facilitated with features like 2 & 4 wheel drive, single & crew cabs etc.
TELCO is the undisputed leader as regards the Commercial Vehicle segment. It has a
largenumber of products in this segments classified as various types namely,