A Consumer Buyer Behavior overview on Tata Motors Ltd. SWOT + Market Segmentation

1. A presentation on the their passenger vehicles.

2. Group

3. History of TATA Motors
Limited.
Initially called TELCO, Tata Engineering and
Locomotive Company.
Tata Motors is a part of the Tata Group.
It entered the locomotive market in 1945.
In 1954, it tied up with Daimler Benz to enter the
commercial market.
It entered the passenger vehicle market in 1991 with
Tata Sierra.

4. Company Profile
Tata Motors is currently into a wide variety of
vehicles in various vehicles:
 Commercial Vehicle Segment (Ace, Starbus ,Novus
etc.)
 Passenger and Utility Segment (Nano, Indigo, Aria,
Sumo etc.)
 Military Vehicles (LSV, Troop Carrier).
 Public Vehicle (Buses, Mini Bus).

5. Total Revenue (2012-2013) – Rs. 189529 (crores).
Total Profit (2012-2013) – Rs. 9893 (crores).
Listed on BSE and NYSE.
Car’s produced (India & Globally) – 606,963.
Subsidiaries: Jaguar, Land Rover, Hispano, Daewoo
Global Operations: UK, Thailand, South Korea and
Spain.
Plants in: Jamshedpur, Pune, Patnagar, Lucknow,
Dharwad, Sanand, Argentina.

6. Products:
Tata Nano
Tata Indica
Tata Indigo Manza
Tata Aria
Tata Safari Storme
 Tata Ace
Tata Sumo Grande

7. Buying Process and Variables
There are various variables that affect the consumer
whilst buying a particular product, these are:
 Influence by the seller.
 Perception.
 Family and Group Influence.
 Lifestyle
 Post Purchase services.

8. Influence by the seller
Various offers to attract buyers during festive seasons.
Ad’s with famous brand ambassadors to promote it.
Free insurance schemes, AMC discounts.
Breakdown support.
Good finance link-ups and options as per the
customers needs.

10. Perception
Tata Motors is clearly trying to step up it's game by a
makeover of all Tata cars.
Karl Slym has identified three critical factors in this
regard.
-Poor quality
-Lack of development of existing models.
-Consumer perception of Tata cars being good only as
taxis

11. Low quality products is undoubtedly reducing sales of
Tata cars.
Lack of quality was a result of more than one supplier
of car parts.

12. Family and Group Influence
Indian middle class can be divided into 3 different
economic categories namely, Aspirers, Seekers, Strivers.
Aspirers (Low Income Class) - They earn between Rs.
90,000 - Rs 200,000 per year. Farmers, Small shop
owners.
Seekers (Middle Class)- They earn between Rs
200,000 - Rs 500,000 per year. University/College
freshers to mid level government and business
executives.

13. Strivers (Upper Middle Class) - They earn between Rs
500,000 - Rs 1,000,000 per year. senior government
and business officials to managers to skilled
professionals.
TATA motors aims majorly on Aspires and Seekers.
Also brands that identify and support family values
are accepted and they perform well in the Indian
market.
TATA branding aims exactly on Indian families and
values.

14. Lifestyle
Tata Motors has effectively catered to different
people with different lifestyles.
The efficient R&D always came up with the right kind
of cars for the right segment of people.
Matched up competitors with Hatchbacks, Sedans as
well as SUV’s.
Car’s varying from 1.24 lacs to 15 lacs.

15. Post Purchase Services
Easily and readily available spare parts.
Large network of workshops (Dealers workshops and
Tata workshops).
Good feedback system and the desire to give better
services.
Scheduled maintenance call reminders.
Dedicated GRS team for all clients. (commercial and
passenger vehicle segment.

16. Market Segmentation
The following aspects of market segmentation have
been included in this presentation:
 Demographic.
 Psychographic.
 Socio-economics.
 Behavioural.

17. Demographic.
Age of end user – Different age/generations would
prefer a different car.
The Family size plays a big role on the selection of a
car, for a nuclear family, a Tata India/Nano can suit
the need whilst for a big family, a Tata Sumo/Aria can
be used.
Tata Motors also plays a significant roll for portraying
their cars to different occupation based people. (For
eg. Tata Manza (executive finish) for the executives,
whilst the Tata Nano for students and the youth.

18. Market
Tata Product
Low Income class
Tata subsidiary
Product
Nano, Indica
Low Middle Income Class Indica, Indigo
Upper Middle Income
Class
Manza, Sumo
Upper Income Class
Aria, Safari Grande
Jaguar, Land Rover

19. Geographic
Nations
Size of population
Climate
Roads

20. Psychographic
Activities
Interest
Attitudes

21. Behavioralistic
Benefits
Usage
Brand Loyalty
Readiness to buy

22. Statistics
Tata Motor’s segment-wise market share.

24. Market Share in Utility Vehicles

25. TML’s passenger car market share fell to 8.9% for the
four months ended July 2013, from 11.8% in the
financial year ended 31 March.

26. SWOT Analysis
Strengths:
 One of the most established company in the
automobile sector.
 Wide and extensive distribution and service network.
 Highly diversified product and portfolio.
 Dedicated engineering and R&D department.
 Highly diversified product and portfolio.
 Dedicated engineering and diversified environment

27. Weaknesses:
 Limited international presence.
 Faces issues with alleged quality and durability issues.
 Does not have a significant foothold in the luxury car
segment in the Indian market.
 A follower and not a leader in the market (besides
nano).

28. Opportunities:
 Leveraging mergers and acquisitions to acquire newer
technology.
 Leveraging customer engagement experience to
acquire new customers.
 Increasing per capita income and purchasing
capability of potential customer base.
 Joint ventures in other countries allow TATA motors
to easily enter into new market.

29. Threats:
 Competitors from other automobile companies.
 Safety provisions in cars.
 No R&D in alternate energy cars.

30. Slogans by TATA Motors
More Dreams per Car.
Reclaim your Life – TATA Safari
More than meets the Eyes – TATA Grande
Khushiyon ki Chabi – TATA Nano