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Marketing strategies of Tata Motors

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Marketing strategies of TATA motors is one of the most successful marketing strategies in automobile industry. By looking at the SWOT analysis of Tata Motors, you will know why Tata Motors Company is able to produce more than 4 million different types of vehicles such as cars, trucks, commercial vehicles, 4×4…etc since the company began in 1945. Meanwhile, Tata Motors Limited has also become the largest automobile producer in India market.

What makes the marketing strategy so successful?

1. Product, Branding, and Advertising

Every business started from 0, from no one knows it until everyone know it. Advertising is one of the most common ways to make car buyer or car enthusiast aware of the new car with special promotion price. Another more important way of advertising is to create an image or brand image. Take BMW Z3 for example, it was introduced in 1996 and shortly the car has been used in the famous James Bond movie. This is similar to Nissan 350 Fairlady Z in the recent 2007 Fast and the Furious 3 – Tokyo Drift. Over the years Tata Motors have been successful in creating their brand image especially they use some famous stars as their spokesman.

Other important marketing strategies are such as the packaging, innovations, and quality control. Tata Motors provide many innovative features to attract car lover. One of these innovations is the Tata Safari 4X4 Dicor that has “Reverse Guide System”. A weather-proof camera is fixed to the rear car to help the driver while reversing the car.

TATA Motors Logo

2. Pricing Strategy

There are various factors to determine a price of a car. These factors are such as market condition (it can’t be too low or too high with the prices of same vehicle from competitors, it has to be at par), cost incurred to build a car, profit by company, dealer profit.

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.

3. Place

Place of dealership does play an important role. 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 world-wide dealership. (See also Ford Motor Company SWOT analysis)

4. Maintenance and Support

After sales service is also another important marketing strategy for most of the car buyer to choose for the right car. End user will not want to spend a lot of time to travel to a far place just to service the car such as change engine oil, oil filter and some simple checking. Parts and accessories must also easy to access when it is needed to keep the customer satisfy from buying Tata cars until maintaining the car or even until they sell the car and change to a newer Tata model.

By looking at the Marketing strategies of TATA motors, the SWOT analysis (the Strengths, Weakness, Opportunities, Threats) can clearly tells why Tata Motors marketing strategies is one of the successful stories in automobile industry nowadays.

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