Tata Motors SWOT ANALYSIS PDF

Preview

Summary

It is an analysis of Tata Motors which is a company operating...

Description

Tata Motors

About the Business - Tata Motors is a part of the Tata Group which is an Indian automobile manufacturer but sells its products around the world. The company's products include automobiles and heavy machinery such as trucks, cars, coaches, military gears and buses. It was founded as a manufacturer of locomotives in year 1945. Tata Motors have factories at various locations around the globe such as India, Argentina, Spain, South Africa, the United Kingdom and Thailand. Tata Motors is one of four most popular car brands in India selling products such as compact, midsize car, and utility vehicle segments. Moreover, Tata Motors contributed over 4 per cent to India’s Gross domestic product in 2018, making it one of the most significant contributors to its GDP. The organization focuses on raising the level of life for all customers while also establishing client trust. TATA Motors is ranked as 226th in the Fortune Global 500 list of world’s biggest corporations as of 2016 Differentiated targeting strategy is used by Tata Motors to target the customers and satisfy their needs and wants.

Distribution Strategy of Tata Motors - In India, Tata Motors have more than 250 dealerships in more than 195 cities across 27 states and four Union Territories of India. It also has dealerships in 26 countries. It holds a robust dealers network. The climate of India’s car distribution network is unlike that of other advanced countries. These differences can be seen in the percentage of dealers, the size and kind of dealers, dealer functions, the manufacturer-dealer link, reservations, funding, the number of cars sold per dealer, margins, and the market climate. Because customers have so many options, most vehicle dealers will have to adapt to meet their needs. Tata Motors owns India’s third-largest servicing and sales network. It has worked with numerous distributors throughout India to supply its automobiles, and its service centers are well-stocked with replacement parts and accessories. Tata Motors has an extensive distribution network across India, and significant product releases are showcased in showrooms for customers to try out. The group also sells used cars and offers services such as extended warranties.

In its distribution process, it first ship the product to its depot, then it is shipped to a local distributor. It is the distributor who sells the products like cars, gears etc. to customers. Tata Motors also has carrying and forwarding agent (C&F) in some cases. These agents are the suppliers for local distributors who get 2%-5% margin. While local distributors have 5% to 10% margin. It is very important to ensure continues supply of products because every distributor can store only 4-5 cars at one time. Moreover, Tata Motors is now focusing a lot on export of vehicles to other nations. It is because there has been many ups and downs in demand of local Indian buyers. Hence, it is focusing on widening its distribution channel to target more customers.

References https://iide.co/case-studies/marketing-strategy-of-tata-group/

https://www.bartleby.com/essay/Distribution-Channel-Of-Tata-Motors-PCDCARN262R https://www.marketing91.com/marketing-strategy-of-tata-motors/ https://www.mbaskool.com/marketing-mix/products/16981-tata-motors.html...