Marketing Mix of Tata Motors and 4Ps (Updated 2024)

The Marketing mix of Tata Motors analyses the 4Ps of Tata Motors, including the Product, Price, Place, and Promotions. Tata Motors is a leading automobile brand. It is most widely known for its commercial vehicles, such as buses and trucks. However, TATA Motors has also started an excellent expansion in passenger cars, rapidly gaining market share. The marketing mix of Tata Motors talks about the 4Ps of the brand, which has helped the brand rise in the automobile empire.

About TATA MOTORS

• Type: Multinational automotive manufacturing company
• Industry: Automobile
• Founded: 1945, Mumbai, India
• Founders: J. R. D. Tata
• Headquarters: Mumbai, India
• Area served: Worldwide
• Current CEO: N Chandrasekaran
• Number of employees: Over 74,000
• Major products: Passenger cars, trucks, vans, buses, defense vehicles

Tata Motors Product Strategy

Tata Motors, a leading global automobile manufacturing company based in India, offers a wide range of products catering to various segments of consumer products in the used car market.

The new Product Mix of Tata Motors in 2024 is as follows (Source).

1. Passenger Vehicles: Tata Motors manufactures various passenger vehicles, including hatchbacks, sedans, and SUVs. Notable models include the Tata Nexon, Tata Harrier, Tata Altroz, and Tata Tiago.
2. Electric Vehicles (EVs): Tata Motors is a pioneer in the electric vehicle market in India, offering models like the Tata Nexon EV and Tata Tigor EV. The company is committed to expanding its EV portfolio in response to growing environmental concerns and government incentives for green vehicles.
3. Commercial Vehicles: The company has a strong presence in the commercial vehicle segment, producing a variety of goods carriers, passenger transport vehicles, and utility vehicles. This includes trucks of various capacities, buses, and vans for urban and rural transportation.
4. Defense Vehicles: Tata Motors also engages in the design and manufacture of defense and military vehicles, providing logistics, tactical, armored, and combat vehicles to the Indian defense sector and other international markets.
5. Utility Vehicles: The utility vehicle segment includes robust and versatile vehicles suitable for personal and commercial use. Models like the Tata Safari and Tata Sumo have been popular choices in this category.
6. Luxury Cars and SUVs (through Jaguar Land Rover): Tata Motors owns Jaguar Land Rover (JLR), a British multinational automotive company that specializes in the manufacture of luxury vehicles and SUVs. JLR brands include Jaguar, known for luxury sedans and sports cars, and Land Rover, renowned for premium SUVs.

Tata Motors Pricing Strategy

Tata Motors employs a multifaceted pricing and promotional strategy to cater to its diverse customer base, adapt its products or services due to market dynamics, and maintain competitiveness. Here’s an expert breakdown of its pricing strategy:

1. Market Penetration Pricing: Tata Motors often uses this strategy for new product launches, especially in the highly competitive passenger vehicle segment. By setting an initial low price, the company aims to attract a more extensive customer base, intending to secure a significant market share swiftly. This approach is particularly evident in introducing their electric vehicles (EVs) and entry-level models.
2. Value-Based Pricing: Understanding the value perception among its target customers, Tata Motors sets prices based on the perceived value of its vehicles. This strategy considers its models’ features, technology, and brand prestige. For instance, vehicles equipped with advanced safety features, superior technology, and better fuel efficiency are priced higher, reflecting the added value to customers.
3. Competitive Pricing: Tata Motors monitors competitors’ pricing strategies within the same vehicle segment and adjusts prices to offer better value propositions. This strategy is crucial in the highly competitive automotive market, ensuring that Tata Motors remains an attractive option for potential buyers.
4. Product Line Pricing: The company employs a product line pricing strategy, where different models and variants are priced at various points to cater to different market segments. This approach allows Tata Motors to address the needs of budget-conscious buyers and those seeking premium features and performance.
5. Psychological Pricing: Tata Motors occasionally uses psychological pricing tactics to make the prices of its vehicles more attractive. For example, pricing a vehicle at INR 4.99 Lakhs instead of INR 5 Lakhs can make a significant psychological impact on the buyer’s perception of value.
6. Geographical Pricing: Recognizing the varying tax structures, transportation costs, and market conditions across different regions, Tata Motors adapts its pricing accordingly. This strategy ensures competitiveness and maximizes market penetration in diverse geographic locations.
7. Dynamic Pricing: With the advent of digitalization and real-time data, Tata Motors can adjust prices based on market demand, inventory levels, and competitive dynamics. This dynamic pricing approach helps optimize sales and profits across different market conditions.
8. Segmentation Pricing: Tata Motors segments its market based on customer demographics, needs, and purchasing power, employing different pricing strategies for each segment. For example, the pricing strategy for luxury vehicles sold under the Jaguar Land Rover brand is distinct from its mass-market models.

Tata Motors Place Strategy

Tata Motors employs a comprehensive place strategy to ensure its products are accessible and available to a wide range of domestic and international customers. Tata Motors has an extensive dealer network covering Indian and International markets. In the vehicles, the dealership method of distribution and sales is generally adopted. Tata Motors has also adopted the dealership method of marketing and distribution of its products.

The dealerships are strategically located in the target and potential markets to ensure efficient and timely availability of their products. A Tata Motors Sales and Service dealership is close to you wherever you are. Here’s a concise business overview:

1. Extensive Dealership Network: Tata Motors has established a vast network of dealerships across India, ensuring that customers have easy access to their vehicles and services. This network facilitates a broad geographical reach, allowing Tata Motors to penetrate urban and rural markets.
2. Global Presence: Beyond its home market, Tata Motors has expanded its footprint to several countries across Europe, Africa, the Middle East, South East Asia, South Asia, South America, and Australia. This international presence is supported through wholly-owned subsidiaries, joint ventures, and local dealerships, catering to diverse global customer needs.
3. Online Sales Platforms: Recognizing the shift towards digital, Tata Motors has integrated online platforms to sell vehicles. This approach complements their physical dealership network and caters to the growing segment of customers preferring online research and purchases.
4. Strategic Partnerships for Distribution: Tata Motors collaborates with local partners in various international markets to leverage local market knowledge and distribution networks. These partnerships are crucial for navigating different countries’ regulatory environments and consumer preferences.
5. After-Sales Services and Support Network: An essential aspect of Tata Motors’ place strategy is its focus on providing accessible after-sales services. The company has set up numerous service centers and authorized service stations, ensuring customers receive prompt and effective service support and enhancing customer satisfaction and loyalty. Working professionals or businesses use these fundamentals to communicate with and reach their planned target market.

Tata Motors Promotion Strategy

Tata Motors employs a dynamic promotion strategy that skillfully combines traditional and digital marketing techniques to move consumers, enhance brand visibility, and drive customer engagement. Through a blend of advertising, public relations, social media, and customer-centric campaigns, the company effectively communicates its value proposition and innovations to a global audience of consumers.

Some Recent Video ads and Print ads for Tata Motors are:

Liked this post? Check out the complete series on Marketing Mix