TATA INDICA
MORE CAR PAR CAR
Marketing planning
Roll no.190.
[Document Title]
Sec-B
[Document Subtitle]
Ranpal singh
Sheoran Ranpal
Presented to: Prof. Girish Kathuria.
Presented by:
TATA INDICA
more car per car
EXECUTIVE SUMMARY
Tata Motors is South Asia’s largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. Worldwide it is the world's fourthlargest truck manufacturer and second-largest bus manufacturer. It has auto manufacturing and assembly plants in Jamshedpur Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has produced and sold over 4 million vehicles in India since 1954. Established in 1945 as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. In 2010, Tata Motors Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times Surpassed
Brand Update: Tata Indica Brand Portfolio
Indica is a brand that is an epitome of persistence. Tata Motors through Indica has demonstrated how to manage product lifecycle effectively. The brand, which was launched in 1998, has passed through many hurdles. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry.
The brand survived and thrived because of the constant focus of
Tata Motors to improve the product continuously. More than the product innovation, it was the value proposition that forced customers to choose Indica despite all those nagging troubles. You can see lot of Indica customers cribbing about the bad service and constant trip to the service centers but sticking to the brand because of the value proposition. You cannot get a diesel car with that much space at the price at which Indica is selling ( so far). Tata Motors has been continuously tweaking the brand over these years sometimes making quantum leap in the quality and refinement of the product. A snapshot of the brand's evolution is given below 1998 - Indica announced 2001 - Indica V2 2004 - Rejuvenated Indica V2 2005- Indica V2 Turbo Diesel 2006- Indica Xeta 2008 - Indica Vista The brand made a quantum leap in 2008 with the launch of Indica Vista. The entire brand personality changed with the launch of Vista. The product's looks and feel had changed completely and it was a rebirth for Indica. The changes in the product were not limited to exteriors. Indica began sporting different types of engines from Fiat that gave a new perception of quality to the brand. At the pricing also, Tata Motors consciously raised the Vista brand to a higher level . The Vista is pricier than the original V2 thus reducing the attractiveness of the brand to the Taxi
segment. At a price range of Rs 4 - Rs 5 Lakh, Indica Vista is not a cheap diesel car. It was an upward stretch by the brand. The Indica Brand portfolio is given below.
.
Situation Analysis
As India economic is booming and number of middle class people is increasing, there is a huge market for small car segment in India. Our main target is to cater middle class and tire II cities. Over a period of more than two decades the Indian Automobile industry has been driving its growth through phases, with comparability higher rate of economic growth rate index against that of global power. India has become a hub of domestic and exports business. The automobile industry has been contributing its share to the shinning economic growth of India in recent years. Automatic approval for foreign investment up to 100% of manufacturing automobiles and its components is permitted. FIIs including over seas corporate bodies (OCB) and NRIs are permitted to invest up to 49 % the paid up equity capital of the investee company, subjected to the Board of Directors and the members by a way of special resolution.
Market summary
Tata Motors possess good information regarding the market and the ideal customer that will be served. Tata motors will leverage this information to better understand the specific needs of its target market, and then design the services to best satisfy these needs.
Mid size car Dealer 40.2 Car Small Wholesale car 49.8 Export Luxury companies Leasing car Government 18.8 Sport Car 1.8
Sales 50.4 20.6 10 7.3 12.7
MARKET GROWTH.
Automobile Industry crossed a landmark with total vehicle production of 11 million units in fiscal year 2010-11. Car sales were 11,082,094 units against 10, 024.973 units in 2010-11 with an aggregate increase of 13.72%. Commercial vehicle segment grew 10.1% with 4,50,683 units against 4,10,478 units.
MAKET FORECAST
Indian market is continually showing great potential to consume small car, which are being used for commercial purpose. In fiscal year 2011-2012 automobile industries are expected to grow at a rate of 24% and private vehicle sector are at a rate of 5-6%. So as for TATA’s it’s a great opportunity to grab the small car segment..
Market share Passenger vehicles Commercial vehicles Three wheelers Two wheelers 15.86 4.32 3.58 76.83
Product forecast.
Company sold near about 98000 Indica in fiscal year 2010-11. And the target is for next fiscal year 2011-12 is to touch the mark of 102400 cars.
Sales forecasting
SWOT ANALYSIS.
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Tata Indica inspectors.
Strength.
Large distribution network Vast experience. Good mileage. After sale service Sturdy Body Name of TATA
Weakness.
It does ‘t have a attractive look Image of car i.e. Taxi car Hatchback in market Crude interior
Opportunities
High growth rate of premium hatchback segment Vast market Positive outlook for both commercial and passenger vehicle in Indian market would give a boost to Tata motors ‘Indian operation’.
Threats
Stiff competition from Maruti and Hyundai High fuel price Environmental issues. Entries of foreign players
Cut throat competition.
Positioning
Indica was marked with slogan “MORE CAR PAR CAR”. And USP would be the interior of the car. Positioning as affordable and low maintenance car. Would be a first passenger car in India. Could be used as a commercial purpose.
Competition
1. There are some figures given related to various cars given a direct competition to 2. 3. 4.
5.
Tata Indica. In small car segment Indica is facing a huge competition from WagnoR, i10 and Santro. Company will cater those customers who are looking low maintain car, or for commercial purpose Main competition of Tata Indica is Maruti Suzuki and Hyundai, as Maruti’s Alto, which directly cater the middle class or economy car buyer. As observed by some previous years up to some extent 2 wheeler manufactures as well give a direct competition to the product at the buyer is from middle class.
Marketing Strategy
THE styling's terrific. The curves, creases, simple planes, soft flowing shape will make this car stand confidently alongside any contemporary hatchback on a Indian street," exulted an industrial designer who saw the Indica displayed at a Telco AGM.
4ps.
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.
Place: Tata Motors has an extensive dealer network covering Indian and International
markets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end-user. This is not only in India itself but also to the worldwide dealership.
Promotion: Tata motors promote their products via Advertising and after sales
services.
People: Tata Motors owe our success to the highly motivated and talented staff. Our
recruitment division picks the crème-de-la-crème from premier universities, management and engineering institutes in India. they put them through rigorous training programmer to hone their entrepreneurial skills and impart comprehensive product knowledge.
Advertisement:
It was devised and created by FCB Ulka, the long-standing advertising agency of choice of Tata Motors. Tata Indica would putt more stretch on Power and excitement to please the customer, as it is Diesel car. So the company will be using a kind of advertisement where they can shock the customer by its power and mileage.
Website: would be providing all kind of information, customer support, Dealer
location, product knowledge, Company info and tie up with major search engine, so the customer can excess the information easily.
Marketing objectives
•
Decrease customer acquisition costs by 8% per year. • Increase repeat customers or referrals by 5% per quarter. • Generate brand equity, quantified by an increase in service requests based solely on Tata motors Inspectors' name.
Financial Objectives
•
•
•
•
A double-digit growth rate for the first four years. Experience a decrease in the variable costs associated with serving each inspection by 3% a year. Maintain steady, positive, and growth every month. Profitability within the first year.
Target Market.
Target market for the product would the consumer which do staying in tier II cities, tier III cities and mostly people looking for a vehicle, which can be used for commercial purpose and required low maintenance cost and value for money. As Tata’s are know for their low cost vehicles, company would cater all Indian market based income group and youth population. Urban, Suburban. Service man, Executives. Upper middle class To target middle age non user and first time user of urban and semi- urban areas earning more than 25k par month and believe in efficiency and quality within a given budget.
Financials, Budgets, and Forecasts
This section will offer a financial overview of Tata motors as it relates to the marketing activities. Tata will address break-even analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.
Marketing Budget:
The marketing expense budget is approximately $743776595 for 2012. This encompasses external marketing efforts as well as internal activities such as marketing training. It does not include one-time design and development costs as detailed in the Milestones chart. Marketing expenses will increase with inflation in 2011 and 2012, projected at 4%, with the exception of the loyalty program expense, which will grow faster along with sales. It also includes increased costs in September for materials associated with the Whoville Celebration.
Annual Expenditure:
Here is annual expenditure of company is estimated base on the previous year expenditure. As company is looking forward increase its revenue expenditure up to 10%.
Annual expenditure. 2011. 2012.
Raw material Manufacturing Employment cost Advertising Building cost Components purchased Raw material Manufacturing Employment cost Consultancy Marketing research Others
2774876 75 1720982 40 6528760 3 2748732 0 9375901 6188379 2 5128599 9 1395677 4 4978496 6 227632 308723 3287478
2937568 75 1846789 76 6734529 7 2875297 6 9876521 6952876 5 5942412 1 1754241 4 5660706 247498 328769 3676586
Monthly Expenditure.
Monthly Budget. Month Jan Feb Mar April May Jun
Budget 58236637 59756893 63958720 66084688 67004772 70847839
Jul Aug Sep Oct Nov Dec
72740083 73870087 75786007 77469970 78764660
796753458
Controls
The purpose of Tata motors marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: • • • • Revenue- monthly and annual. Expenses- monthly and annual. Repeat business. Customer satisfaction.
Sales Forecast
First month will be used to set up the mobile office. There will be no sales activity during this time period. Beginning with the second month, there will be some sales activity. It is forecasted that sales will steadily grow thereafter. Profitability will be reached by month six.
Sales forecast for the year 2011-12
Series 1 Jan Feb. March April May June July Aug. Sep. Oct. Nov Dec 10591 10044 6937 6598 5457 8188 9746 8656 7988 11879 8760 7980
Revenue Forecast: Tata Indica is targeting aggregate revenue of US$ 762554191, in fiscal year 2011-12 from different segmented market. Main area of revenue is selling spare parts on its own authorize service centers after the main sale of new cars. There are some figures are given under here to be followed.
X-Values Tire I cities Tire II cities corporate selling Spare parts selling Dealers commission Commercial selling
2011 2012 1746776 1997400 29 00 1287667 1478200 76 00 6507676 6983000 7 0 6286600 6781000 0 0 1508766 1709700 73 00 1676470 1978200
Total sell
00 7499108 45
00 8539900 00
US$
doc_604053960.docx
MORE CAR PAR CAR
Marketing planning
Roll no.190.
[Document Title]
Sec-B
[Document Subtitle]
Ranpal singh
Sheoran Ranpal
Presented to: Prof. Girish Kathuria.
Presented by:
TATA INDICA
more car per car
EXECUTIVE SUMMARY
Tata Motors is South Asia’s largest automobile company; it is the leader in commercial vehicles and among the top three in passenger vehicles. Worldwide it is the world's fourthlargest truck manufacturer and second-largest bus manufacturer. It has auto manufacturing and assembly plants in Jamshedpur Pantnagar, Lucknow, Sanand, Dharwad and Pune, India, as well as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has produced and sold over 4 million vehicles in India since 1954. Established in 1945 as a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969. In 2010, Tata Motors Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted by Brand Finance and The Economic Times Surpassed
Brand Update: Tata Indica Brand Portfolio
Indica is a brand that is an epitome of persistence. Tata Motors through Indica has demonstrated how to manage product lifecycle effectively. The brand, which was launched in 1998, has passed through many hurdles. The brand successfully transcended the initial flaws, bad customer /expert reviews and brickbats to become one of the largest selling cars in the Indian auto industry.
The brand survived and thrived because of the constant focus of
Tata Motors to improve the product continuously. More than the product innovation, it was the value proposition that forced customers to choose Indica despite all those nagging troubles. You can see lot of Indica customers cribbing about the bad service and constant trip to the service centers but sticking to the brand because of the value proposition. You cannot get a diesel car with that much space at the price at which Indica is selling ( so far). Tata Motors has been continuously tweaking the brand over these years sometimes making quantum leap in the quality and refinement of the product. A snapshot of the brand's evolution is given below 1998 - Indica announced 2001 - Indica V2 2004 - Rejuvenated Indica V2 2005- Indica V2 Turbo Diesel 2006- Indica Xeta 2008 - Indica Vista The brand made a quantum leap in 2008 with the launch of Indica Vista. The entire brand personality changed with the launch of Vista. The product's looks and feel had changed completely and it was a rebirth for Indica. The changes in the product were not limited to exteriors. Indica began sporting different types of engines from Fiat that gave a new perception of quality to the brand. At the pricing also, Tata Motors consciously raised the Vista brand to a higher level . The Vista is pricier than the original V2 thus reducing the attractiveness of the brand to the Taxi
segment. At a price range of Rs 4 - Rs 5 Lakh, Indica Vista is not a cheap diesel car. It was an upward stretch by the brand. The Indica Brand portfolio is given below.
.
Situation Analysis
As India economic is booming and number of middle class people is increasing, there is a huge market for small car segment in India. Our main target is to cater middle class and tire II cities. Over a period of more than two decades the Indian Automobile industry has been driving its growth through phases, with comparability higher rate of economic growth rate index against that of global power. India has become a hub of domestic and exports business. The automobile industry has been contributing its share to the shinning economic growth of India in recent years. Automatic approval for foreign investment up to 100% of manufacturing automobiles and its components is permitted. FIIs including over seas corporate bodies (OCB) and NRIs are permitted to invest up to 49 % the paid up equity capital of the investee company, subjected to the Board of Directors and the members by a way of special resolution.
Market summary
Tata Motors possess good information regarding the market and the ideal customer that will be served. Tata motors will leverage this information to better understand the specific needs of its target market, and then design the services to best satisfy these needs.
Mid size car Dealer 40.2 Car Small Wholesale car 49.8 Export Luxury companies Leasing car Government 18.8 Sport Car 1.8
Sales 50.4 20.6 10 7.3 12.7
MARKET GROWTH.
Automobile Industry crossed a landmark with total vehicle production of 11 million units in fiscal year 2010-11. Car sales were 11,082,094 units against 10, 024.973 units in 2010-11 with an aggregate increase of 13.72%. Commercial vehicle segment grew 10.1% with 4,50,683 units against 4,10,478 units.
MAKET FORECAST
Indian market is continually showing great potential to consume small car, which are being used for commercial purpose. In fiscal year 2011-2012 automobile industries are expected to grow at a rate of 24% and private vehicle sector are at a rate of 5-6%. So as for TATA’s it’s a great opportunity to grab the small car segment..
Market share Passenger vehicles Commercial vehicles Three wheelers Two wheelers 15.86 4.32 3.58 76.83
Product forecast.
Company sold near about 98000 Indica in fiscal year 2010-11. And the target is for next fiscal year 2011-12 is to touch the mark of 102400 cars.
Sales forecasting
SWOT ANALYSIS.
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Tata Indica inspectors.
Strength.
Large distribution network Vast experience. Good mileage. After sale service Sturdy Body Name of TATA
Weakness.
It does ‘t have a attractive look Image of car i.e. Taxi car Hatchback in market Crude interior
Opportunities
High growth rate of premium hatchback segment Vast market Positive outlook for both commercial and passenger vehicle in Indian market would give a boost to Tata motors ‘Indian operation’.
Threats
Stiff competition from Maruti and Hyundai High fuel price Environmental issues. Entries of foreign players
Cut throat competition.
Positioning
Indica was marked with slogan “MORE CAR PAR CAR”. And USP would be the interior of the car. Positioning as affordable and low maintenance car. Would be a first passenger car in India. Could be used as a commercial purpose.
Competition
1. There are some figures given related to various cars given a direct competition to 2. 3. 4.
5.
Tata Indica. In small car segment Indica is facing a huge competition from WagnoR, i10 and Santro. Company will cater those customers who are looking low maintain car, or for commercial purpose Main competition of Tata Indica is Maruti Suzuki and Hyundai, as Maruti’s Alto, which directly cater the middle class or economy car buyer. As observed by some previous years up to some extent 2 wheeler manufactures as well give a direct competition to the product at the buyer is from middle class.
Marketing Strategy
THE styling's terrific. The curves, creases, simple planes, soft flowing shape will make this car stand confidently alongside any contemporary hatchback on a Indian street," exulted an industrial designer who saw the Indica displayed at a Telco AGM.
4ps.
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.
Place: Tata Motors has an extensive dealer network covering Indian and International
markets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end-user. This is not only in India itself but also to the worldwide dealership.
Promotion: Tata motors promote their products via Advertising and after sales
services.
People: Tata Motors owe our success to the highly motivated and talented staff. Our
recruitment division picks the crème-de-la-crème from premier universities, management and engineering institutes in India. they put them through rigorous training programmer to hone their entrepreneurial skills and impart comprehensive product knowledge.
Advertisement:
It was devised and created by FCB Ulka, the long-standing advertising agency of choice of Tata Motors. Tata Indica would putt more stretch on Power and excitement to please the customer, as it is Diesel car. So the company will be using a kind of advertisement where they can shock the customer by its power and mileage.
Website: would be providing all kind of information, customer support, Dealer
location, product knowledge, Company info and tie up with major search engine, so the customer can excess the information easily.
Marketing objectives
•
Decrease customer acquisition costs by 8% per year. • Increase repeat customers or referrals by 5% per quarter. • Generate brand equity, quantified by an increase in service requests based solely on Tata motors Inspectors' name.
Financial Objectives
•
•
•
•
A double-digit growth rate for the first four years. Experience a decrease in the variable costs associated with serving each inspection by 3% a year. Maintain steady, positive, and growth every month. Profitability within the first year.
Target Market.
Target market for the product would the consumer which do staying in tier II cities, tier III cities and mostly people looking for a vehicle, which can be used for commercial purpose and required low maintenance cost and value for money. As Tata’s are know for their low cost vehicles, company would cater all Indian market based income group and youth population. Urban, Suburban. Service man, Executives. Upper middle class To target middle age non user and first time user of urban and semi- urban areas earning more than 25k par month and believe in efficiency and quality within a given budget.
Financials, Budgets, and Forecasts
This section will offer a financial overview of Tata motors as it relates to the marketing activities. Tata will address break-even analysis, sales forecasts, expense forecasts, and how those link to the marketing strategy.
Marketing Budget:
The marketing expense budget is approximately $743776595 for 2012. This encompasses external marketing efforts as well as internal activities such as marketing training. It does not include one-time design and development costs as detailed in the Milestones chart. Marketing expenses will increase with inflation in 2011 and 2012, projected at 4%, with the exception of the loyalty program expense, which will grow faster along with sales. It also includes increased costs in September for materials associated with the Whoville Celebration.
Annual Expenditure:
Here is annual expenditure of company is estimated base on the previous year expenditure. As company is looking forward increase its revenue expenditure up to 10%.
Annual expenditure. 2011. 2012.
Raw material Manufacturing Employment cost Advertising Building cost Components purchased Raw material Manufacturing Employment cost Consultancy Marketing research Others
2774876 75 1720982 40 6528760 3 2748732 0 9375901 6188379 2 5128599 9 1395677 4 4978496 6 227632 308723 3287478
2937568 75 1846789 76 6734529 7 2875297 6 9876521 6952876 5 5942412 1 1754241 4 5660706 247498 328769 3676586
Monthly Expenditure.
Monthly Budget. Month Jan Feb Mar April May Jun
Budget 58236637 59756893 63958720 66084688 67004772 70847839
Jul Aug Sep Oct Nov Dec
72740083 73870087 75786007 77469970 78764660
796753458
Controls
The purpose of Tata motors marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge performance: • • • • Revenue- monthly and annual. Expenses- monthly and annual. Repeat business. Customer satisfaction.
Sales Forecast
First month will be used to set up the mobile office. There will be no sales activity during this time period. Beginning with the second month, there will be some sales activity. It is forecasted that sales will steadily grow thereafter. Profitability will be reached by month six.
Sales forecast for the year 2011-12
Series 1 Jan Feb. March April May June July Aug. Sep. Oct. Nov Dec 10591 10044 6937 6598 5457 8188 9746 8656 7988 11879 8760 7980
Revenue Forecast: Tata Indica is targeting aggregate revenue of US$ 762554191, in fiscal year 2011-12 from different segmented market. Main area of revenue is selling spare parts on its own authorize service centers after the main sale of new cars. There are some figures are given under here to be followed.
X-Values Tire I cities Tire II cities corporate selling Spare parts selling Dealers commission Commercial selling
2011 2012 1746776 1997400 29 00 1287667 1478200 76 00 6507676 6983000 7 0 6286600 6781000 0 0 1508766 1709700 73 00 1676470 1978200
Total sell
00 7499108 45
00 8539900 00
US$
doc_604053960.docx