Published by MBA Skool Team, Last Updated: February 20, 2017
Marketing Strategy of Tata Motors analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Tata Motors marketing mix, help the brand succeed in the market.
Tata Motors marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Tata Motors Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Tata Motors marketing strategy can be explained as follows:
Tata Motors is involved in manufacturing of vehicles in categories that include cars Hatchback, Sedan and utility vehicles, Trucks, Buses, Municipal Solutions, and Defence and homeland security. The product portfolio in the marketing mix of Tata Motors also covers brands like Jaguar and Land Rover. The consumers perceive the Tata Motors brand that produces vehicles that provides reliability, high quality, and efficiency. Tata Motors ranks in top four passenger vehicle brands in India. It focuses on innovation and due its vast industrial experience, they continuously work on developing new vehicles with robust technical specifications. In addition, Tata Motors follow stringent Quality norms and abides by the rules laid down by the regulatory agencies. In its focused developed on innovation, Tata Motors had unveiled electric versions of Tata Indica car and Tata Ace commercial vehicle that runs on lithium batteries. During Commonwealth games, Tata Motors presented CNG – electric hybrid buses to Delhi Transport Corporation that were part of environment friendly buses. The Tata 407, of the Light commercial vehicle category has sold over 5,00,000 units since its initial launch.
Image: company website
Tata Motors Price/Pricing Strategy:
Below is the pricing strategy in Tata Motors marketing strategy:
Tata Motors has a diverse portfolio, which means a diverse pricing strategy.
In 2008, Tata Motors launched Tata Nano the cheapest passenger car in the world. It followed penetration-pricing strategy and vehicles manufactured by Tata Motors are comparatively cheaper than its competitors are. Due to its low price, it attracted media attention and the vehicle reported an increase in sales figure within short time during the initial days of the launch. The lower pricing of Tata Nano also resulted in consumers perceiving it as a cheap product. The penetration pricing strategy can act as entry barrier for new players in the segment targeting lower income group. The pricing strategy in the marketing mix of Tata Motors caters to the lower class as well as the affluent upper class. Tata Motors’ international acquisition Jaguar Land Rover targets niche customers providing high quality features.
Following is the distribution strategy in the Tata Motors marketing mix:
Tata Motors has the third largest service and sales network in India. To distribute its vehicles, it has partnered with various distributors across India and the service centres are well equipped with the spare parts and accessories. Tata Motors has extensive distribution network set up across India, also major launches are displayed in showrooms to experience the product. To purchase defence vehicles, Tata Motors has set up regional offices in the states of West Bengal, Maharashtra, Delhi and Karnataka. It is also involved in the sales of Pre – Owned Cars and provides features such as extended warranty.
Hence, this analyses the marketing mix of Tata Motors.
Tata Motors Promotion & Advertising Strategy:
The promotional and advertising strategy in the Tata Motors marketing strategy is as follows:
Tata Motors has been known to having an aggressive marketing strategy. To endorse its passenger vehicles globally, Tata Motors declared Lionel Messi as their brand Ambassador. It also signed film celebrities as brand ambassador for its commercial vehicle business. Tata Motors is the prime sponsor of many events and it helped in creating awareness about its new product Tata Tiago in the minds of the consumers. The company offers discount to its customers as part of festival offers in India hence developing interest among consumers. The promotional strategy in the marketing mix of Tata Motors is carried out in the form of TV, Newspapers, and electronic media. Tata Motors leverages upon Social media marketing to target customers based on the search results. The Tata brand is considered a trusted brand hence it uses the same to tap on the customers.
About Tata Motors:
Tata Motors is headquartered in Mumbai, India and is an Indian automotive manufacturing company. Its products ranges from trucks, cars, passenger vans, buses military vehicles and construction equipment. Tata Motors was founded in the year 1945 as locomotive manufacturer and in collaboration with Daimler-Benz AG it’s manufactured its first commercial vehicle in 1954. In 2008, Tata Motors was in news for the worlds cheapest car “Tata Nano”. As per its merger and acquisition strategy, it acquired Jaguar Land Rover from Ford and Daewoo Commercial Vehicles Company, which is a South Korean Truck manufacturer. In 2016, the company is ranked 226th on Fortune Global 500 list of world’s biggest corporations. Tata Motors has its vehicle assembly plants in India, Thailand, South Africa, Great Britain, South Korea, and Spain.
The company is turnover estimated to be $42 Billion and has sold more than 9 million vehicles. In 1961, Tata Motors went international and is selling vehicles in more than 50 countries.
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