tata motors ppt final
DESCRIPTION
THIS IS AMBASTHA STUFFTRANSCRIPT
GROUP MEMBERS( GROUP 8)(in the order of roll nos.)
• ROHAN GOEL (409)
• JIGNESH KAMANI (417)
• RASIKA LAD (427)
• DWIJ NAIN (435)
• PRAGNA PUJARA (443)
• ABHIJIT SANKHE (451)
• RACHNA SONEJI (459)
The Road Ahead……………
• Phase 1 – Entry into passenger vehicle
• Phase 2 – Launch of Indica
• Phase 3 – Launch of Indica V2
• Phase 4 – New Launches
• Phase 5 – Tata’s Ambitious Project
THE ROAD AHEAD……PAST
• Introduction and History of Tata motors
• PHASE 1
Entry of Tata Motors from
Commercial vehicles
To
Passenger vehicles segment
Automotive Industry
• 50’s -80’s closed market, dominant player being Hindustan Motors Ltd. and Premier Auto Ltd.
• In 1982- Maruti-Suzuki tie up• In 1983- Maruti 800 was introduced• From 83-93, Maruti 800 had monopoly• With 92’s liberalization policy,50% FDI was
allowed.
Automotive Industry (Contd:)• TELCO entered the passenger car market,
introducing three multi-utility vehicles, "Tata Estate" and "Tata Sierra" in 1991-92 and "Tata Sumo" in 1995-96.
• Even after liberalization, Maruti was a dominant player in smaller passenger car segment.
THE ROAD AHEAD……PAST
• PHASE 2
Entry into the compact Car segment
with Launch of India’s first indigenously developed car
INDICA
Basic Concepts of new Car
• Space• Easy entry and exit• Safety• Economy of diesel• Price• Contemporary design
TELCO’s low cost, $400 mn Vs.$2 bn Purchase of Nissan plant
PLAYERS IN THE COMPACT SEGMENT
• Maruti Udyog Ltd.
Zen, WagonR
• Hyundai motors India Ltd.
Santro
• Daewoo Motors India Ltd.
Matiz
• Fiat India Automobiles Pvt. Ltd.
Uno
MARKET SHARE Market shares till 1998
Maruti57%Santro
22%
Matiz15%
Uno6% Maruti
Santro
Matiz
Uno
Market shares after Indica launch, Dec. '99
Maruti36%
Santro27%
Matiz12%
Uno7%
Indica18%
Maruti
Santro
Matiz
Uno
Indica
THE ROAD AHEAD……PAST
• PHASE 3
Failure of Indica and Subsequent launch and Success of Tata Indica V2.
INDICA:India’s Car, India’s Pride
• A car exclusively for the middle class Indian.
• A car designed for India rather than a car adapted for India
• More car, per car• Value for money• Pre launch promotions and brand
building exercises“We give you value for your money. Coming
up shortly, so wait for it…”
Sales….
• First Year – 55758 cars
• Cumulative sales for Indica were growing by 37%
• Target Audience – Middle class family man– Young working Executive
• Loyalty Programme – Indica Club
Openness to Problem-Solving
• Tremendous hype because market leader in other products
• Different set of customers with a different set of requirements
• Problems – Uneven tire wear, belt noise
• Rectified the technical glitches
• Extended the warranty period
• Modifications at the production end
Openness to Problem-Solving
• Mid 2000 – More Complications
• Tackled – Improved version launched
• Version – Indica V2
Power &Technology -Indica V2
• Buried the truck building mentality
• “Very soft” or “hard” suspension.
• Deluxe Goods give as standardised features
• Marketing Jargon
Branding The V2
• Only announcements ads
• Highlight the improvements
• Feature Specific
• Titan watches
• Indica club
Branding The V2 ….contd
• Asha Bhosale and Daler Mehndi
• Newsletters
• Dealer panels and Customer meets
• Independent Customer Satisfaction Surveys
• 390 problems per 100 vehicles to 273 problems per 100 vehicles
Changes in Business Policies
• Change in the top management
• Working Capital mgt
• Quality Initiatives for Clear and visible results
Changes in Business Policies
• Gearing up with CRM
• Getting the right systems
• Customer’s Safety First
• Partnering Again
Present Sales Figures– Tata Motors
2005-06 2004-05 Growth
454345(tot inc exports )
399566 13.7%
56406 (march –cumulative)
44432 27%
6508 (exports) 3964 64.2%
22609 (PV --march)
20000 13.1%
Present Sales Figures– Automotive Industry
•12 percent growth overall
•31.55 percent growth in exports
CHANGES IN TATA OUTLOOK
• Focus on the youth
• Car changed to make it more zippy with good mileage
• More focus on CRM
• Focus on women consumers
• International look and feel
THE ROAD AHEAD……FUTURE
• PHASE 5
Tata’s 1 Lakh Car
• Ratan Tata’s Statement
"It is my dream to make the car a reality within the five years I remain as Tata chairman."
PORTER ANALYSIS
• New entrants : Bajaj ,TVS Motors
• Substitutes – quadricycles
• Competitors – Skoda, Maruti, Hyundai,GM,Reva
• Distributors – New Distribution network
• Suppliers – Supply chain
Car Features
• Car bigger than Maruti 800
• Engine lighter
• 5 seat, rear engine vehicle
• Positioned between two wheeler and Maruti 800
• Targeting the two wheeler segment, with a small pie from Maruti 800
Proposed Innovations
• Bolted or glued panels instead of welded bodies
• Small satellite units instead of Dealers
Changes in Business Policy
• At present , adopt technology, develop a product and then improve upon it
• 1 lakh car will be a System, in which Tata will be a systems integrator. Tata will develop the System and co – manufacture the Product.
Changes in Business Policy…
• At Present, Tata manufactures a product and the pricing is then set accordingly
• Now, the price for the car as well as all its components being fixed, the manufacturing is then looked upon
Change in TATA Outlook
• Tie up with local manufacturers
• Rural training – rural employment
• Focus on two wheeler segment buyers
• Car design, technology outsourced
Plant Location to minimize costs
• Plant location – West Bengal
• Tata Steel and Tata Metaliks also in WB
• Plant Location – Jamshedpur
• Good auto components base, Tata HCV and LCV manufacturing base present
• Plant location – Uttaranchal
• Site for hugely successful ACE, offers significant excise relief
Competitor responses to the 1 lakh car
• Maruti – Mr. Khattar – not possible to sell at the quoted price
• Maruti 800 sales rebound this March
• Flank 800 against 1 lakh car with price cut+ cut in excise duty
• Hyundai– will compromise on safety, emission norms etc
• Bajaj – we can make better car