Introduction

Tata motors is an Indian’s largest multi-holding company. It was established in 1945. This company
caters to three market segment internationally. The passenger cars, Utility vehicles and commercial
vehicles. The company produced the first mini-truck, first light and heavy vehicles and many more
firsts in India, being an inventor in their industry. Tata motors has entered into strategic acquisition
and joint ventures in its mid stage and launched new products at a rapid pace in various markets. Now
a days, Tata motors enjoys the position of being Indian’s leading auto-mobile manufacturer with
increasing presence in Europe, South East Asia, Africa, Australia, and the middle East with a total
more of US $ 4 billion. The company focuses on providing customers the best value for their money
meets European standards and environmental regulations through their advance technologies.

Tata Motors is headquartered in Mumbai, India and is an Indian automotive manufacturing company.
Its products ranges from trucks, cars, passenger vans, buses military vehicles and construction
equipment. Tata Motors was founded in the year 1945 as locomotive manufacturer and in collaboration
with Daimler-Benz AG it’s manufactured its first commercial vehicle in 1954. In 2008, Tata Motors
was in news for the world’s cheapest car “Tata Nano”. As per its merger and acquisition strategy, it
acquired Jaguar Land Rover from Ford and Daewoo Commercial Vehicles Company, which is a South
Korean Truck manufacturer. In 2016, the company is ranked 226th on Fortune Global 500 list of
world’s biggest corporations. Tata Motors has its vehicle assembly plants in India, Thailand, South
Africa, Great Britain, South Korea, and Spain. The company is turnover estimated to be $42 Billion
and has sold more than 9 million vehicles. In 1961, Tata Motors went international and is selling
vehicles in more than 50 countries.

About Products
Tata Motors, plans to expand its product range offering for the Russian market. Having introduced its Light
Commercial Vehicles, the company is exploring the possibility of entering various segments of medium
and heavy trucks and buses over the next three years. Tata Motors is displaying the diversity and range of
its products at the Moscow Motor Show (Interauto 2007). On display are the Xenon 4×4 pick-up (crew
cab), Ace mini truck, Hispano DIVO GT 3.5 bus, LP 613 bus, LPT 1618 trucks, Novus 6X4 Dumper, Novus
6X4 Tractor. Of these, the Xenon 4×4 pick-up (crew cab) and Ace mini truck (both manufactured by Tata
Motors in India), Hispano DIVO GT 3.5 bus (manufactured in Spain), LP 613 bus (manufactured by Tata
Motors’ Russian partner – Volzhanin), LPT 613 truck applications (manufactured by Tata Motors’ Russian
partner –AMUR), Novus 6X4 Dumper and Novus 6X4 Tractor (manufactured by Tata Daewoo, Korea)
are being displayed for the first time in Russia.

Also, these are some current Product variant which is offered by TATA motors in the market:

 Prima

The Prima range of trucks offers increased productivity and longer life making the
range an indispensable asset for large captive users, miners or transporters.
 M&HCV Construck

Widest range of trucks for the demands of the construction and mining industry.

 ICV Truck

The range caters to diverse application segments with ease and efficiency to
provide the optimum balance between performance and economics.

 Light Truck

The range caters to diverse application segments with ease and efficiency to provide
the optimum balance between performance and economics.

 ULTRA

The Ultra range of international standard light commercial vehicles set new benchmarks in
India. Designed to offer performance standards that are streets ahead of competition.

 Yodha Pick-up

From commercial applications to pure lifestyle usage, Tata Motors' portfolio now
has the entire range with Rx pickup, Telcoline and the new Yodha Pick-up Pickup
to cater to any need.

 Ace Gold

Becoming the fastest auto brand to reach the one million mark in 2012, the 'Chhota
Hathi' continues to remain true to its promise of being a trusted business partner.

 Tata Intra

Intra is a range of rugged & powerful compact trucks built on TML’s new
‘Premium Tough’ design philosophy for commercial vehicles, which combines
rising levels of visual richness and sophistication with robustness and reliability.

 Buses

Buses from Tata Motors are a hallmark of excellence and the range has adapted
innovations to suit Indian and global travel conditions.
  Winger

Winger, India’s first Maxi Van is a stylish passenger vehicle recognized as a sleek, smart
and reliable performer that is ideal for travel between cities, towns and villages.

Modes of entry

In the Middle East Countries, we sell trucks from 1T to 49T and buses from 28 seaters to 81 seaters
catering to top schools, construction and logistic companies in the region. More than 10,000 TATA
vehicles of different sizes ply on Middle East roads transporting people and goods safely to their
destinations. Starting with staff buses, with the leadership position in medium bus segment, we
have launched our new range of trucks - Prima and range of pickups - Xenon with which we are
expanding fast into the respective segments.

For making presence in the Middle East Countries Tata Motors used several strategies which are
as follows:

Exporting

Exporting is a typically the easiest way to enter an international market, and therefore most firms
begin their international expansion using this model of entry. Exporting is the sale of products and
services in foreign countries that are sourced from the home country. The advantage of this mode
of entry is that firms avoid the expense of establishing operations in the new country. However,
have a way to distribute and market their products in the new country, which they typically do
through contractual agreements with a local company or distributor. When exporting, the firm
must give thought to labeling, packaging, and pricing the offering appropriately for the market. In
terms of marketing and promotion, the firm will need to let potential buyers know of its offerings,
be it through advertising, trade shows, or a local sales force.

Partnerships and Strategic Alliances

Another way to enter a new market is through a strategic alliance with a local partner. A strategic
alliance involves a contractual agreement between two or more enterprises stipulating that the
involved parties will cooperate in a certain way for a certain time to achieve a common purpose.
To determine if the alliance approach is suitable for the firm, the firm must decide what value the
partner could bring to the venture in terms of both tangible and intangible aspects. The advantages
of partnering with a local firm are that the local firm likely understands the local culture, market,
and ways of doing business better than an outside firm. Partners are especially valuable if they
have a recognized, reputable brand name in the country or have existing relationships with
customers that the firm might want to access.
And TATA motors is using this strategy to capture the whole Middle East by making
different partners like:

ABU DHABI
DALMA MOTORS
A major player on the automotive scene, Dalma Motors was set up in 2002 to contribute to the
UAE's growing transport sector and construction industry. The automotive flagship of the
prestigious United Al Saqer Group of C
ompanies, Dalma Motors' reputation for quality, strength, mobility and durability positions it as
one of the top automobile companies in the UAE. As the official dealer for Tata Motors' vehicles,
Dalma Motors has sold thousands of vehicles over the past decade, and cornered an impressive
share of the bus sector.

DUBAI
UNITED DIESEL LLC
Set up in 1972, United Diesel LLC specialises in commercial vehicles, hosting the largest
international brands under one roof. A part of the Al Rostamani Group, United Diesel offers
complete after-sales services, and innovative transport solutions to the commercial, industrial and
educational sectors. Its various after-sales outlets are positioned in convenient locations for easy
accessibility to its customers. It also offers mobile workshops and door delivery of spare parts to
its corporate customers.

KUWAIT
AL ZAYANI TRADING COMPANY
A family-owned and operated business, Al Zayani's principal interests in the region include
commercial vehicles and passenger cars. It offers comprehensive after-sales support for all the
vehicles it sells. Al Zayani offers complete facilities, trained personnel and a complete parts
inventory to meet and exceed customer expectations.

QATAR
AL HAMAD AUTOMOBILES
Incorporated in 1998, Al Hamad Automobiles is today one of the leading automobile companies
in Qatar. Al Hamad, the sole distributor for Tata Motors' commercial vehicles in Qatar, is part of
the Mohamed Hamad Al Mana Group of Companies. It has a well-equipped, state-of-the-art
workshop with a highly dedicated and professional team that offers regular services for all pick-
ups, trucks and buses within 24 hours. A 95 percent stock level for all vehicles and machineries
ensures prompt delivery.

OMAN
AL HASHAR
Al Hashar and Co LLC has been Tata Motors' sole distributor for over three decades. It is one of
Oman's premier trading companies with more than 40 years' experience in the automobile industry
and interests in electronics, trading and services, tourism, travel, hospitality and real estate. It has
sales and service facilities across Oman.

SAUDI ARABIA
MANAHIL INTERNATIONAL COMPANY
Manahil International Company, the new automotive arm of Mohamed Yousuf Naghi & Brothers
Group (MYNG), is the sole authorized distributor of Tata Motors’ vehicles in the Kingdom of
Saudi Arabia.

IRAQ
MENAFITH AL-IRAQ
Menafith Al-Iraq, headquartered in Baghdad, is our authorized representative to co-ordinate the
supply of vehicles to government agencies in Iraq. Menafith Al-Iraq has fully functional 3S
facilities in Baghdad and Basra to cater to sales and after-sales service of Tata vehicles in Iraq.

Acquisitions

An acquisition is a transaction in which a firm gains control of another firm by purchasing its
stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a
purchase price. In our increasingly flat world, cross-border acquisitions have risen dramatically.
In recent years, cross-border acquisitions have made up over 60 percent of all acquisitions
completed worldwide. Acquisitions are appealing because they give the company quick,
established access to a new market. However, they are expensive, which in the past had put them
out of reach as a strategy for companies in the undeveloped world to pursue. What has changed
over the years is the strength of different currencies. The higher interest rates in developing nations
has strengthened their currencies relative to the dollar or euro.
New, Wholly Owned Subsidiary

The process of establishing of a new, wholly owned subsidiary (also called a Greenfield venture)
is often complex and potentially costly, but it affords the firm maximum control and has the most
potential to provide above-average returns. The costs and risks are high given the costs of
establishing a new business operation in a new country. The firm may have to acquire the
knowledge and expertise of the existing market by hiring either host-country nationals possibly
from competitive firms or costly consultants. An advantage is that the firm retains control of all its
operations.

PEST ANALYSIS

POLITICAL

Since Tata Motors operates in multiple countries across Europe, Africa, Asia, the Middle East, and
Australia. It needs to pay close attention to the political climate but also laws and regulations in
all the countries it operates in while also paying attention to regional governing bodies.
Laws governing commerce, trade growth, and investment are dependent on the local
government as well as how successful local markets and economies will be due to regional,
national and local influence.

Despite political and economic ups and downs and uncertainties IRAN remains one of the Middle
East top countries when it comes to the growth potential. With largest young population IRAN is
considered one of the best export markets in the region.

 Unique factor is that it is religious and Islamic.

 The political system of Islamic republic is based on 1979 constitution. Accordingly it is
duty of Islamic government to furnish all citizens with equal and appropriate opportunities.
 The white revolution which is a step taken with a view to strengthening the foundation of
the despotic regime and to maintain the economic links.
 The tax environment for foreign businesses is highly risky.
 The corporate tax rate has been lowered to a flat 25% from the previous maximum of about
60.
 The fiscal year starts on March 21 and ends on March 20 of other year.

TYPES OF TAX

1. Income tax
2. Islamic taxes
3. Real estate taxes
4. Capital gain tax
5. Indirect taxes
ECONOMICAL FACTORS

The fact that the Iran industry’s is undergoing an unbalanced need as well as supply situation is
not the only economic issue of the sector. The excess supply in the sector is complied with by a
rate which is lower than the expense of Iran A which has brought about cash flow problems for
makers.

Economic downturn is a significant concern in the market given that it can activate reduced
manufacturing. Improvements in effectiveness degrees can result in enhanced manufacturing
which results in economic downturn once again because of excess supply and low demand leading
to closure of companies due to low profits.

 Inflation rate for IRAN is 13.50% for year 2010 while in 2009 it was 25.60%.
 It is transition economy with large public sector and estimated 50% of economy centrally
planned. A unique feature is the large size of religious foundations whose combined budget
makes up more than 30% of central government.
 Unemployment rate is 11.80%. According to official estimates some 3.5 million working
age Iranians are currently unemployed. The jobless rate is high among women and youth
of Islamic republic.
 It is 18th largest economy purchasing power parity.
 Iran’s non-oil exports, excluding gas condensates to the Gulf Cooperation Council [GCC]
were valued at $2.281 billion during the first 9 months of the current Iranian calendar year
(March-December, 2010), showing 25 percent over the same period last year.
 The economic growth prospect for IRAN in 2011 is 3.2%. Prospects for both developing
and high income economies of Middle East and North Africa should improve through
2011.
 Oil prices are expected to remain broadly stable over the forecast period, at around $75 a
barrel. Strong global activity is allowing crude oil to return positive growth. Oil prices are
expected to remain stable over forecast period at $75 per barrel.
 GDP growth for developing oil exporters should reach 3.1 and 3.7 percent, respectively, in
2010 and 2011.

SOCIAL FACTORS

Social factors have likewise added in the direction of the development of the Iran a market in
Taiwan. The Taiwanese government has actually concentrated on human funding growth in the
industry through trainings focused on enhancing the knowledge of resources in the market. The
launch of the Semiconductor Institute in 2003 for training as well as developing ability is an
example of the social efforts to improve the industry. Although innovation was imported, getting
resources knowledgeable about the innovation has been done by the federal government. Social
initiatives to boost the photo and top quality of the Taiwanese IC market can be seen by the truth
that it is the only sector which had actually expertly developed divisions of labor worldwide.
  Government and people are not working together. Chances are much that Taliban is able
to strengthen the base.
 Â The nuclear laboratory that is functional here is also a cause of big tension.
 Obama administration is making the other countries of the world to also bring their
attention towards Iran and come out with the ways in which it could be subjected to
rebuilding its view towards Iran.
 Loyalty to the family comes before other social relationship, even business.
 Iranians see themselves as having two distinct identities: “zaher” (public) and “batin”
(private).
 Â When they are in public, they must conform to accepted modes of behavior. It is only
within their homes among their inner circle that they feel free to be themselves. Family
members are always part of the inner circle.
 The inner circle forms the basis of a person’s social and business network. Friendship is
very important and extends into business. The people from the inner circle can be relied
upon to: offer advice, help find a job, or cut through bureaucracy.

ENVIRONMENTAL FACTORS

A basic review of the setting recommend that Taiwan is a highly favorable region for Iran A
manufacturing as noticeable by the simplicity in ability expansion in the Iran An industry. In
addition to this, the fact that the area offers producing capabilities even more reinforces this
monitoring.

 Vehicles emissions, refinery operations, industrial effluents which contribute to poor air
quality.
 Most cars here use leaded gas and lack emission control equipment.
 Buses and cars running on natural gas are planned to replace the existing public
transportation fleet in nature.
 Iran is suffering from overgrazing and deforestation. Wet land and bodies of fresh water
are being destroyed as industries are increasing.
 It contends that the international rush to develop oil and gas reserves in the Caspian Sea
presents that region with a new set of environmental threats.
 To evaluate the prevalence of overweight and obesity among Iranian adolescents and their
relationship with modifiable environmental factors.
Tata Motors Product Strategy:

Over the years Tata Motors have prevailed in creating their brand image especially they use some
famous stars as their spokesman. Other important marketing strategies are including the packaging,
enhancements, and quality control. Tata Motors provide many innovative features to attract car
enthusiast. One of these improvements is the Tata Safari 4X4 Decor that has "Reverse Guide
System". A weather-proof camera is fixed to the rear car to help the drivers while reversing the
automobile.
The product strategy and mix in Tata Motors marketing strategy can be explained as follows:
Tata Motors is involved in manufacturing of vehicles in categories that include cars Hatchback,
Sedan and utility vehicles, Trucks, Buses, Municipal Solutions, and defence and homeland
security. The product portfolio in the marketing mix of Tata Motors also covers brands like Jaguar
and Land Rover. The consumers perceive the Tata Motors brand that produces vehicles that
provides reliability, high quality, and efficiency. Tata Motors ranks in top four passenger vehicle
brands in India. It focuses on innovation and due its vast industrial experience, they continuously
work on developing new vehicles with robust technical specifications. In addition, Tata Motors
follow stringent Quality norms and abides by the rules laid down by the regulatory agencies. In its
focused developed on innovation, Tata Motors had unveiled electric versions of Tata Indica car
and Tata Ace commercial vehicle that runs on lithium batteries. During Commonwealth games,
Tata Motors presented CNG – electric hybrid buses to Delhi Transport Corporation that were part
of environment friendly buses. The Tata 407, of the Light commercial vehicle category has sold
over 500,000 units since its initial launch.

Tata Motors Price/Pricing Strategy:

There are amount of factors to look for the price of the automobile. Factors include like market
condition for example it can't be too low or too high with the prices of same vehicles of the
challengers. Giving discount on a monthly basis and special promotion for certain type of vehicle
also one of the strong strategy use by Tata Motors. Discount can be produced from Company's
profit or from dealer's revenue at certain range.

Below is the pricing strategy in Tata Motors marketing strategy:

Tata Motors has a diverse portfolio, which means a diverse pricing strategy. In 2008, Tata Motors
launched Tata Nano the cheapest passenger car in the world. It followed penetration-pricing strategy
and vehicles manufactured by Tata Motors are comparatively cheaper than its competitors are. Due to
its low price, it attracted media attention and the vehicle reported an increase in sales figure within
short time during the initial days of the launch. The lower pricing of Tata Nano also resulted in
consumers perceiving it as a cheap product. The penetration pricing strategy can act as entry barrier
for new players in the segment targeting lower income group. The pricing strategy in the marketing
mix of Tata Motors caters to the lower class as well as the affluent upper class. Tata Motors’
international acquisition Jaguar Land Rover targets niche customers providing high quality features.
Tata Motors Place & Distribution Strategy:

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.
Tata Motors has been present in the Middle East geography since 1971 when there trucks were
first sold in Bahrain. Today, there vehicles are sold in the UAE, Oman, Kuwait, Qatar, Saudi
Arabia, Iraq and Turkey. The region accounts for a tenth of our export market. They offer products
with the reliability and ruggedness that are necessary for operating in local weather conditions and
terrains. They have achieved a leadership position in the medium bus segment, and we are now
expanding into the pickup and truck sectors. The Tata Elanza, Xenon and Prima are our latest
launches in this region.

Tata Motors Promotion & Advertising Strategy:

The promotional and advertising strategy in the Tata Motors marketing strategy is as follows:
Tata Motors has been known to having an aggressive marketing strategy. To endorse its passenger
vehicles globally, Tata Motors declared Lionel Messi as their brand Ambassador. It also signed film
celebrities as brand ambassador for its commercial vehicle business. Tata Motors is the prime
sponsor of many events and it helped in creating awareness about its new product Tata Tiago in the
minds of the consumers. The company offers discount to its customers as part of festival offers in
India hence developing interest among consumers. The promotional strategy in the marketing mix of
Tata Motors is carried out in the form of TV, Newspapers, and electronic media. Tata Motors
leverages upon Social media marketing to target customers based on the search results. The Tata
brand is considered a trusted brand hence it uses the same to tap on the customers.
 Conclusion
Tata Motors has never had it so good. Today the company is the undisputed market leader in
the commercial vehicles industry in India and is gradually emerging as one of the key players
internationally too. It has been forging ahead on a number of fronts in an attempt to further
entrench its position as a market leader. In the SCV segment, the company has witnessed
unprecedented success with the launch of the pioneering Tata ACE. In the M and HCV segment,
the company has been taking determined steps to further consolidate its position. The company
enjoys a number of key strengths that enable it to present a unique value proposition to its
customers.
However this success is far from being a given. The company must focus on combining its
unique strengths, as it endeavors to replicate its recent successes in new segments and across
new geographies. Apart from product reliability, the most important determinant of future
success would the company's ability to bolster its support framework. If the company gets it
right, the spoils could indeed be breathtaking. Not only will that catapult the company to the
forefront of creating a unique customer experience, but also help spawn altogether new revenue
streams. The future presents challenges and opportunities for the company in equal measure
both domestically and internationally. While pitfalls are many, Tata Motors looks well
positioned indeed to capitalize on these opportunities and take on the world.