INTRODUCTION

SWOT analysis (alternatively SWOT matrix) is an acronym for strengths,

weaknesses, opportunities, and threats and is a structured planning method
that evaluates those four elements of an organization, project or business
venture. A SWOT analysis can be carried out for a company, product, place,
industry, or person. It involves specifying the objectives of the business venture
or project and identifying the internal and external factors that are favourable
and unfavourable to achieve that objective. Some authors credit SWOT to Albert
Humphrey, who led a convention at the Stanford Research Institute (now SRI
International) in the 1960s and 1970s using data from Fortune 500 companies.
However, Humphrey himself did not claim the creation of SWOT, and the origins
remain obscure. The degree to which the internal environment of the firm
matches with the external environment is expressed by the concept of strategic
fit.
• Strengths: characteristics of the business or project that give it an
advantage over others
• Weaknesses: characteristics of the business that place the business or
project at a disadvantage relative to others
• Opportunities: elements in the environment that the business or project
could exploit to its advantage
• Threats: elements in the environment that could cause trouble for the
business or project
Identification of SWOTs is important because they can inform later steps in
planning to achieve the objective. First, decision-makers should consider
whether the objective is attainable, given the SWOTs. If the objective is not
attainable, they must select a different objective and repeat the process.

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Users of SWOT analysis must ask and answer questions that generate
meaningful information for each category (strengths, weaknesses,
opportunities, and threats) to make the analysis useful and find their
competitive advantage.

Internal and external factors

SWOT analysis aims to identify the key internal and external factors seen as
important to achieving an objective. SWOT analysis groups key pieces of
information into two main categories:
Internal factors – the strengths and weaknesses internal to the organization
External factors – the opportunities and threats presented by the environment
external to the organization
Analysis may view the internal factors as strengths or as weaknesses
depending upon their effect on the organization's objectives. What may
represent strengths with respect to one objective may be weaknesses
(distractions, competition) for another objective. The factors may include all of
the 4Ps as well as personnel, finance, manufacturing capabilities, and so on.

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The external factors may include macroeconomic matters, technological
change, legislation, and sociocultural changes, as well as changes in the
marketplace or in competitive position. The results are often presented in the
form of a matrix.
SWOT analysis is just one method of categorization and has its own
weaknesses. For example, it may tend to persuade its users to compile lists
rather than to think about actual important factors in achieving objectives. It
also presents the resulting lists uncritically and without clear prioritization so
that, for example, weak opportunities may appear to balance strong threats.
It is prudent not to eliminate any candidate SWOT entry too quickly. The
importance of individual SWOTs will be revealed by the value of the strategies
they generate. A SWOT item that produces valuable strategies is important. A
SWOT item that generates no strategies is not important.

When to use SWOT analysis

The uses of a SWOT analysis by a community organization are as follows: to
organize information, provide insight into barriers[12] that may be present
while engaging in social change processes, and identify strengths available that
can be activated to counteract these barriers.
A SWOT analysis can be used to:
• Explore new solutions to problems
• Identify barriers that will limit goals/objectives
• Decide on direction that will be most effective
• Reveal possibilities and limitations for change
• To revise plans to best navigate systems, communities, and
organizations
• As a brainstorming and recording device as a means of communication
• To enhance “credibility of interpretation” to be utilized in presentation
to leaders or key supporters.

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Who Should Be Involved in the SWOT Analysis?
A SWOT analysis is only effective if it takes everything into consideration. No
area of the company should be left out, making it important to include
representatives from every department or team. The analysis may bring issues
to light that were not previously on a company's radar.

How to Perform a SWOT Analysis

Begin by making a list of strengths, weaknesses, opportunities and threats.
Consider holding a group brainstorming session to pinpoint factors in each
category.
Alternatively, you can ask each team member to work on his or her own, then
share and compile the results.
Don't concern yourself with elaborating on the factors of each category on the
first attempt. Start out with bullet points to identify relevant factors in each
category.
Once the brainstorming is complete, build a final version of the SWOT analysis
listing all of the factors in each category with the highest priority placed at the
top and the lowest at the bottom.

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 Benefits of SWOT analysis
The main advantages of conducting a SWOT analysis is that it has little or no
cost - anyone who understands your business can perform a SWOT analysis.
You can also use a SWOT analysis when you don't have much time to address a
complex situation. This means that you can take steps towards improving your
business without the expense of an external consultant or business adviser.
Another advantage of a SWOT analysis is that it concentrates on the
most important factors affecting your business. Using a SWOT, you can:

• understand your business better

• address weaknesses
• deter threats
• capitalise on opportunities
• take advantage of your strengths
• develop business goals and strategies for achieving them.

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Limitation
When you are conducting a SWOT analysis, you should keep in mind that it is
only one stage of the business planning process. For complex issues, you will
usually need to conduct more in-depth research and analysis to make
decisions.

Keep in mind that a SWOT analysis only covers issues that can definitely be
considered a strength, weakness, opportunity or threat. Because of this, it's
difficult to address uncertain or two-sided factors, such as factors that could
either be a strength or a weakness or both, with a SWOT analysis (e.g. you
might have a prominent location, but the lease may be expensive).

A SWOT analysis may be limited because it:

• doesn't prioritise issues
• doesn't provide solutions or offer alternative decisions
• can generate too many ideas but not help you choose which one is best
• can produce a lot of information, but not all of it is useful.

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 SWOT Analysis Of TATA Motors
TATA motors are one of the leading motor vehicle producers in the world. TATA
motors have strong background and reputation in the market. The company is
working to strengthen its position in automobile industry by adopting different
strategies. Following are the strengths, weaknesses, opportunities and strengths
of TATA motors.

Strengths
TATA Motors is one of the leading companies in automobile industry with more
than 70 years of experience. During this period, it had produced more than 3
million vehicles which is huge achievement for the company. TATA motors have
been expanding its business which is obviously requiring more workforces.
Currently TATA motors employee base is 23,000 Approx. One of the strengths
which is very visible in the industry and also beneficial for TATA motors revenue
are low price vehicles and low fuel consumption. Due to TATA motors strong
brand and quality vehicles it has good reputation in the industry. It is India
largest automobile company with revenues of Rs. 35651.48 crores (USD 8.8
billion) in 2007-08. TATA motors are expanding its network in International
market by aggressively acquiring foreign companies. TATA motors has been
famous to introduce new vehicles, this is possible just because of the strong

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research and development. TATA motors also play active role in corporate and
social responsibility.

Weaknesses
There are strings attached with every new invention and improvement on
products. These strings are Tata Motors weaknesses and what other groups
perceive as their weaknesses. One weakness that Tata Motors faces is its
inability to meet safety standards. Although they have made the most
inexpensive car out on the market, it has yet to pass all the safety standards
which is a legal factor. Some consumers and pessimists inquire as to how Tata
Motors can make such a cheap car and withstanding a car accident or not just
falling apart after hitting something once. Pessimistic people also want to
believe that car manufactures are already doing everything they can to keep
costs low for the consumer, and if that is the case, then putting the cheapest car
out on the market automatically questions if it is safe to drive.Tata Motors only
have been making passenger cars for the approximately last ten years. This can
be viewed as a weakness from a customer standpoint since a decade does not
seem like a lot to consumers and therefore they will think that Tata Motors is
inexperienced car manufacturing.

Opportunities
Tata Motors has already opened the doors for many new and innovative ideas,
but not only for their company, but their competitors as well which could turn
into a threat. One of the major opportunities that Tata Motor faces is that as of
right now 90 percent of China and India’s adult population do not own cars,
partly because cars are costly and require more expenses after purchased. So
the market for a low-priced car is huge which benefits Tata Motors perfectly
since they produce the lowest priced car on the market. This is a huge
opportunity for Tata Motors because if they can get their feet into that market
of people that do not have cars because they cannot afford them, then they will
make large profits down the road. China’s total car sales areestimated at over 8
million dollars annually and they were the world’s second largest car market in
2006. China’s government forecasts that demand for cars will top 20 million by
2020. With Tata Motors in the market with the cheapest car, China’s demand
for cars will probably increase even more significantly which will in turn increase
sales for Tata Motors. As of March 2008 Tata Motors finalized a deal with Ford
Motor Company to acquire the British businesses, Jaguar Cars and Land Rover.

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This is a huge opportunity for Tata Motors since they will acquire the large
knowledge base and technologies for producing and marketing luxury vehicles.
This acquisition helps them dive into the more mature markets in Japan, Europe
and the U.S. The knowledge transfer from these two companies will greatly
improve Tata Motors ability to continue to grow and flourish in both developing
and developed market segments.

Threats
The obvious threat to Tata Motors is intellectual property rights. Tata invented
the cheapest car on the market and every automobile manufacturer wants to
know how Tata did it. Headhunters are soon going to find out this valuable
information and make it available to their own company. This is a huge threat to
Tata Motors because at first they had low competition, but once other car
manufactures find out how they invented such a low cost car, and then these
companies too will jump on board and design their own line of low cost
automobiles. On one hand this can be a threat, but on the other it may not affect
Tata Motors at all because people will still want to purchase their product since
they were the pioneers of all the excitement. Another main concern that Tata
Motors faces is that cheap cars in India will have an adverse effect on pollution
and global warming because most of the population will be able to afford the
cars.

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PEST Analysis for TATA Motors

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. In accordance, Tata’s headquarters in Mumbai, India, strictly
controls and regulates operations in all dealerships and subsidiaries, in addition
to knowing and abiding by all labor laws in the multiple countries where they
have manufacturing plants it has to watch political change.

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ECONOMIC
Operating in numerous countries across the world, Tata Motors functions with
a global economic perspective while focusing on each individual market.
Because Tata is in a rapid growth period, expanding or forming a joint venture
in over five countries world-wide since 2004, a global approach enables Tata
Motors to adapt and learn from the many different regions within the whole
automotive industry. They have experience and resources from five continents
across the globe, thus when any variable changes in the market they can gather
information and resources from all over the world to address any issues. For
instance, if the price of the aluminum required to make engine blocks goes up
in Kenya, Tata has the option to get the aluminum from other suppliers in
Europe or Asia who they would normally get from for production in Ukraine or
Russia. Tata Motors also has to pay close attention to shifts in currency rates
throughout the world. Currency fluctuations can equate to higher or lower
demands for Tata vehicles which in turn affect profitability. It can also mean a
rise in costs or a drop in returns. But they also have to pay attention to not just
the domestic currency, the rupee, but also to the dollar, euro, bhat, won, and
pound, to just name a few. Just because the rupee is strong against the dollar
does not mean it is strong against all the other currencies. Attention to currency
is important because it influences where capital investment will develop and
prosper.

SOCIAL
Undoubtedly, the beliefs, opinions, and general attitude of all the stakeholders
in a company will affect how well a company performs. This includes every
stakeholder from the CEO and President, down to the line workers who screw
the door panel into place, from the investor to the customer, the culture and
attitude of all these people will ultimately determine the future of a company
and whether they will be profitable or not. For this reason, Tata Motors tends
to use
an integration and rarely separation technique with foreign companies they
acquire. In 2004, Tata Motors acquired Daewoo Commercial Vehicles Company,
which was at the time Korea’s second largest truck maker. Rather than using de-
culturation or assimilating Daewoo, Tata took an integrated approach, and
continued building and marketing Daewoo’s current models as well as

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introducing a few new models globally just as it had been done under Korean
management.

TECHNOLOGY
Tata Motors and its parent company, the Tata Group, are ahead of the game in
the technology field. “The foundation of the company’s growth is a deep
understanding of economic stimuli and customer needs, and the ability to
translate them into customer-desired offerings through leading edge R&D”
(Tata). Employing 1,400 scientists and engineers, Tata Motors’ Research and
Development team is ahead of the pack in India’s market and right with the rest
of the field internationally. Among Tata’s firsts are “the first indigenously
developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car,” as well as the
increasingly famous Tata Nano, which is projected to be the world’s cheapest
production car (Tata). In the automotive industry, it is becoming increasingly
crucial for manufacturers to stay on top of the technology curve with new
problems always rising such as escalating gas prices and pollution problems.
Tata recognizes this and dedicates lots of resources and time into research and
development to be even with or preferably ahead of other competitors, global
trends, and changing economies. In all, an automobile manufacturer must
change, adapt, and evolve to stay competitive in the automotive game, and this
is exactly what Tata is doing with their rapid growth, and extensive research and
development.

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Porter's 5 Forces Model of the NANO car
There is continuing interest in the study of the forces that impact on an
organisation, particularly those that can be harnessed to provide competitive
advantage. The ideas and models which emerged during the period from 1979
to the mid-1980s were based on the idea that competitive advantage came from
the ability to earn a return on investment that was better than the average for
the industry sector. As Porter's 5 Forces analysis deals with factors outside an
industry that influence the nature of competition within it, the forces inside the
industry (microenvironment) that influence the way in which firms compete,
and so the industry’s likely profitability is conducted in Porter’s five forces
model.

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MARKETING MIX
Marketing is the process by which a product or service originates and is then
priced, promoted, and distributed to consumers. The principal marketing
functions involve market research and product development, design, and
testing. It is the business activity of presenting products or services in such a way
as to make them desirable. One has to consider promotion that is balanced with
a suitable product available at a reasonable price, provided at all places to
maximize the sale of one’s product.
MARKETING MIX

PRODUCT PRICE PROMOTION PLACE

Brand Pricing Strategy Personal Selling Channels of Distributions

Packaging Pricing & Quality Advertising Physical Distribution

Innovations Price & Alterations Public Relations

Quality Discounts

1. PRODUCT (Brand, Packaging, Innovations, Quality) :

a. Brand: Advertising is often used to make consumers aware of a product’s
special low price or its benefits. But an even more important function of
advertising is to create an image that consumers associate with a product,
known as the brand image. The brand image goes far beyond the functional
characteristics of the product. The products of Tata Motors have many special
characteristics to them, but when consumers think of it, they not only think of
its features, but they may also associate it with quality, performance, and class.
All of these meanings have been added to the product by advertising.
Consumers frequently buy the product not only for its functional characteristics
but also because they want to be identified with the image associated with the
brand. Tata Motors have been successful in creating and maintaining a
professional brand image.
b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers
to and effective assembly of features. Tata Motors provide many innovative
features to suit the target customers and the product. E.g. Tata Safari Dicor has
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‘Reverse Guide System’ which includes a weather-proof camera to help the
driver while reversing the vehicle.
c. Innovations: The various motives behind buying an automobile are Need,
Prestige, Comfort, Fashion, Jealousy and Novelty. The R & D Department
continuously strives to bring new innovations in their product. Tata have an
industrial experience of over 100 years and they are well known with the
Psychology of Indian customers, who desire more at less price. This experience
has helped them to develop products which fulfill the expectations of Indian
consumers.
d. Quality Control : Tata Motors have their Quality Control standards and the
QC Dept. ensures that the customer does not face any inconveniences of a
defective product.
Products of Tata Motors:

• Passenger cars – Indica, Indigo, Indigo Marina, Nano

• Utility Vehicles – Safari Dicor, Sumo Grandi, Xenon Xt
• Trucks – SFC 407, SFC 410, SFC 709, SFC 909, LPT 407, LPT 709, LPT 809,
LPT 909.
• Buses – SFC 407 Bus, LD 407, LP 407 TT, LP 709, LP 909, LP 613, LP 713,
LPO 918, LPO 1109 TC, LPO 1618
2. PRICE (Pricing Strategy, Alterations, Discounts)
a. Pricing Strategy: The prices are fixed keeping in mind a number of factors.
Prices have to be at par with the prices of the competitors. Tata Motors give a
relative price advantage as compares to its competitors. The various
determinants of price are
i. Market Condition
ii. Costs incurred
iii. Profit percentage desired by the Co.

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iv. Dealer Profit
b. Alterations: The Company does not allow any alterations to any of the
features of the product. If there is an alteration which affects the performance
of the engine, then the warranty becomes void. However, there may be
alterations in the accessories, if desired by the customer.
c. Discounts: Discounts are decided by the Co. every month. Any further
discounts made from the profits of the dealer. However, the Co. may
compensate the dealer for the discounts allowed to a certain extent.
3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public
Relations)
a. Personal Selling: There is minimal personal selling involved. The Sales Officers
at the dealerships collect prospective customer databases and perform cold
calling to attract customers.
b. Advertising: Advertising is a form of commercial mass communication
designed to promote the sale of a product or service. Tata Motors is responsible
for the advertising of its products. The dealer does play any role in the
advertising. The various media used for advertising are T.V., Newspapers,
Magazines, Hoardings, Internet etc. The dealer conducts point-of-purchase
displays to advertise the products. The advertisements done by the Co. help the
dealer to capitalize on the market.
c. Sales Promotion: The purpose of sales promotion is to supplement and
coordinate advertising and personal selling; Sales promotions are designed to
persuade consumers to purchase immediately by providing special incentives
such as cash rebates, prizes, extra product, or gifts. The Co. conducts intensive
sales promotion during festivals such as festive discounts during Diwali.
d. Public Relations : Public Relations is a management function that creates,
develops, and carries out policies and programs to influence public opinion or
public reaction about an idea, a product, or an organization. The Co. takes
serious measures to maintain good public relations. The Co. follows business
ethics to ensure that the customer is satisfied and receives good service
whenever and wherever he desires.

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Advertisement given by Tata Motors

4. PLACE (Channels of Distribution, Physical Distribution)

a. Channels of Distribution: In case of vehicles, dealership method of
distribution and sales is generally adopted. Tata Motors have also adopted
dealership method of distribution of its products. The dealers purchase products
from the Co. at a negotiated price. The MRP is fixed by the Co. and the dealer
gets a profit within these prices. As the Co. deals in commercial and passenger
vehicles, there may be a single or distinct dealerships to market its commercial
and passenger vehicles in a town. However, if there is a single dealership
appointed, then the commercial and passenger vehicles are managed under
Commercial Vehicles Dept. and Passenger Vehicles Dept. respectively.
Tata Motors have contracts with the Government of India and it supplies buses
and passenger vehicles, in some cases, to the Govt. Sometimes, bulk quantities
of vehicles are ordered by a Govt. Dept. or a private company. The sales,
distribution and billing of these are looked after by the Co. itself.

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 b. Physical Distribution: The commercial vehicles are manufactured at
Jamshedpur, Lucknow and pantagar whereas the passenger vehicles are
manufactured at Pune plant. From the plant, the finished product is transported
to the dealerships. The nation-wide dealership, sales, services and spare parts
network comprises over 2,000 touch points. The dealerships are strategically
located in the target and potential markets to ensure efficient and timely
availability of its products in the market.

STP ANALYSIS
Segmentation:
Segmentation is based upon considerable evidence that a single marketing
approach or formula will not work for all members of the community to be
served.
Geographic:
The region of Tata motors is whole India with special focus on Type A and fast-
growing Type B cities across India.
Demographic:
• Age → anybody of age between 18 to 50 years.
• Income → anybody with an income of over 4 lakh p.a.
• Occupation → millennial employed as professional, managers and those
who want to buy their first car.
• Social Class → Middle Class, Upper Middle, Lower Upper and Upper
Upper.
Psychographic:
• Personal → Dreamers, those who want to achieve big, ambitious, price
conscious, took their first step towards success and value driven.
Behavioural:
• Benefits → Quality, Style.
• User Status → Potential users and first time users.
• Readiness Stage → those who are aware, informed, interested and intend
to bye.

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Targeting:
Tata Motors has full market coverage in vehicle market as they cover market
through Differentiated Marketing. So, Tata Motors typically creates more total
sales. However, it also increases the cost of doing business. That’s why they lead
to both higher sales and higher costs.
Full Market Coverage

M1 M2 M3

P1

P2

P3

After introducing Tata Nano and acquiring Jaguar & Land Rover they have full
market coverage from Common men to Luxuries loving people. So, Tata Motors
attempt to serve all customer groups with all the products.

Positioning:
Tata Motors has many products for various sectors. Company has a product like
Tata ACE which is used as mini-truck. This product is mostly used at agriculture
level. This product can carry below 1 tone. So, in agriculture sector this mini-
truck makes good image. Like that Tata Motors introduced Tata Nano car for
lower level people who cannot afford car but now they can buy a car in Rs.1 lakh.
It also makes a brand image on customer’s mind that Tata Motors is companies
where Customer gets that product what he want. After acquiring Jaguar & Land
they got drastic change in people’s mind. Now customer has more chooses then
before. When people think to purchase a car then they always think about
different companies like Tata Motors, Mahindra and Mahindra, Hyundai, Maruti
etc. In this situation customer always think about his likings, styles and Tata
Motors can provide this as good as possible. Everybody knows that Tata motors
can give them good product by technical. So, Tata Motors’s brand image instead
of the people is trustworthy and reliable car company.

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CONCLUSION
From this project we conclude that the marketing strategies of Tata motors are
according to market. They always look after their consumers and their needs.
They make changes in their product what consumer wants, that’s why most of
the consumers, are satisfied from the company. Company wants that every
people can purchase their product so, they have product from low price to high
price with number of different styles and designs without compromising product
quality. Company is also providing good services to their customers. Company
has its own show rooms and service centres in different places so customers
can’t face many difficulties to purchase their products. “Success will largely be
determined to the extent a company can differentiate itself in terms of
intangibles that go with a car.” Success could well hinge on the best of bundle
of services that a carmaker can provide.

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