Impact of Advertising on Customers in Tata Motors

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Introduction
The consumer durable market in India has been very competitive in the recent
years, with opening up of market for international players due to liberalization; the
domestic players are facing a tough competition. So it s time for domestic companies to‟
frame new strategies for their production and marketing activities. An evaluation of the
effectiveness of the past activities of a company will enable the company in framing these
new strategies. Such an effort has been made through this market research to know the
http://www.projectskart.com/ on Customers in TATA MOTORS (A case study in
AUTO MATRIX, HASSAN).
Advertising is the dissemination of information concerning an idea, service or a
product to compel action in accordance with the intent of the advertiser. It is any paid
form of nonpersonnel presentation of ideas, goods or service by an identified sponsor.
The role of advertising in the promotional plan of a company is very vital.
Advertising, whether it is on a national, local or direct basis is important as it can inform,
remind or persuade established or potential customers of the existence of a product or
organization, developing an image through advertising amount to giving a brand a distinct
identity or personality.
A research study on “http://www.projectskart.com/ ON CUSTOMERS in
TATA MOTORS AUTO MATRIX” HASSAN was aimed at analyzing the effectiveness
of advertisement.
The survey was conducted at HASSAN through a questionnaire for customer who
uses TATA cars. The customer were interviewed on the various aspect like specific
programs followed, their awareness about advertisement, their impression about the
advertisement, the newspapers etc. the perception with respect to various attributes like
price, range, style/design, cost of spares, availability of spares, service, brand
names, film stars role in advertisement, and ease of purchase were also included in the
questionnaire.
The study also made an effort to understand what makes an advertisement
popular, whether it is pictuarization, music, models or humor.
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http://www.projectskart.com/:
Consumers are increasingly exposed with advertising campaigns in which they are
often confronted with idealized representations of the world (e.g., idealized situations,
attractive models). A large amount of studies has shown that advertising presenting
idealized images can have strong effects on consumer satisfaction and welfare. However,
obtained results were not consistent with each other. Some studies found that advertising
had an increasing effect on consumer satisfaction; other studies found that advertising had
a negative impact and led to consumer dissatisfaction. No research has ever tried to
resolve why conflicting results were obtained in this area of research. Moreover, there
exists no extant consumer behavior model on the effects of advertising on consumer
satisfaction.
Consumers really play an important and a vital role in the success of any
advertisement. Any advertisement is said to be a successful one when consumers are
attracted to a particular advertising. Advertisements are made by keeping the consumer s‟
perspective in the mind so that it can appeal the right consumer which the company needs
to target for their product. People like the advertisements which appeal them or through
which they can connect or relate themselves. Some of the emotional advertisements also
really work on consumers as the consumers feel that someone like them is also using that
product.
Problem statement
In Indian car industry, small car segments have played a very crucial and significant
role due to its economy, efficiency and effectiveness. Due to invasion of foreign cars into
Indian markets, the pace of competition has hiked.
As today s world is of competition, a firm has to attract the interest of the customers‟
and provide satisfactory service to them according to their taste and requirements. They
have to know about the changing customer needs and preferences.
Marketing occupies an important position in the organization of business. Peter
Drucker, points out that the purpose of marketing or business is “to create a customer”.
Few decades back the seller was the king of the market; the simple reason for this was
lack of competition.

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Marketing is the human activity directed at satisfying human wants through the
exchange of goods and service.
Marketing management occupies the most important position in business
management. Marketing management in a firm is critical as it deals with customers and
their needs. The major task of marketing management is to adopt firm s resources to‟
market opportunities
The essence of marketing concept is that the customer and not the product shall be
the heart of the entire business system. It emphasizes on customer oriented marketing
process, plans. Policies and programs, which are formulated to serve efficiently the
customer demand.
“Marketing is so basic that it cannot be considered as a separate function. It is the
whole business seen from the point view of its final results i.e., from the customer s point‟
of view”.
A consumer is the king and has the right to choose from a large variety of
offering. He is the central point and all marketing activities revolve around him. Today
market is a more consumer oriented in the sense all the business operations revolve
around the customer satisfaction and service.
Thus, marketing is often dynamic, challenging and rewarding. It can also be
frustrating and even disappointing but never dull. The topic
“http://www.projectskart.com/” is chosen to study the Advertising strategies adopted in
M/s AUTO MATRIX dealers for M/s TATA MOTORS Ltd. This project deals with how
M/s AUTO MATRIX defines its consumer target and uses its marketing tools in the best
way to attract and satisfy their needs and wants competitively and profitably. Here
marketing functions are limited to the function of buying and selling, but they include all
functions necessary to satisfy the customer such as financing, after sales services, etc.
Customer oriented marketing approach points out the primary task of business
enterprise is to study needs, besides the value of potential customer on the basis of latest
and accurate knowledge of marketing demand.
Marketing management usually represents all managerial efforts and functions to
operate the marketing concept, not only in letters but also in the spirit. Marketing concept

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demands customer oriented marketing plans, programs and policies so that the merchants
can assume perfect correlation between demand and supply.
Thus, marketing is a matching process by which a producer provides a marketing
mix i.e., product, price, promotion and physical distribution that meet consumer s‟
demand of a target market within the limits of society.
Finding out “The http://www.projectskart.com/” is the important statement of the
problem in this project.
This will help the company to improve their marketing as well as servicing
strategies adopted by them. This also helps them to know their current position in the
market.
Objectives of the Study:
The study is conducted with reference to http://www.projectskart.com/. The
important objectives of this study are:-
 To study the advertising strategies adapted by the manufacturing company
M/s.TATA MOTORS.
 To know the marketability of the products, to identify major problems the
company/dealer is facing and to provide suggestions to overcome such problems.
 To analysis the product ranges of the company.
 To study advertising and promotional activities of the company.
 To assess the selling performance of the dealer and services provided by them.
 To study the attitude of customers towards the facilities provided at the centre.
 To evaluate the effectiveness of marketing mix strategy adopted by AUTO
MATRIX.

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Scope of the study:
This study was conducted with reference to „http://www.projectskart.com/ on
customers in AUTO MATRIX, an authorized dealer for TATA MOTORS, in HASSAN.‟
This study was conducted to evaluate the effectiveness of advertising strategy
adopted by TATA MOTORS; hence it studies the marketing activities. It also studies the
opinion of the management towards publicity and promotion of products of the company.
The study also makes an effort to show the inter-relation between the product and the
consumer to know how TATA MOTORS would compete with its competitors in recent
years in marketing and promotional activities.
The result of the study helps the company to gives better service to their
customers, as the feedback is directly got from the customers. It also provides a base for
the company to gear up to the customer s demands and expectations and also has and‟
understanding of customer needs and preferences in the future.
Research Methodology
The formidable problem that follows the task of designing the research project is
known as the "Research Design". The design of a quantitative research study includes the
method for collecting the data. The sample design and construction of the data collection
instrument.
Purpose of enquiry: The scope of the enquiry is to support the data required to make
study on http://www.projectskart.com/.
Scope of data: The scope of enquiry is limited to the study of the topic concerned only.
Sources of data: The data was collected through primary data collection.
Nature and type of enquiry: Non-official Non-confidential
Direct: There is 100 degree of accuracy.
Sampling Design
A sample size of 100 respondents was covered. Random sampling procedure of
survey was conducted the primary data. Respondents were classified on the basis of their
age, car owned etc. Respondents were intervolved at the showroom.

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Sources of Data Collection
The task of data collection begins after a research problem has defined &
Research design of plan cooked out. There are 2 basis ways of data collection.
Primary Data
 A detailed questionnaire was handed over to a chosen sample.
 Frequent visitors to the AUTO MATRIX.
 Interaction with Customer.
 Discussion with executives of AUTO MATRIX.
Secondary Data
 Product broachers.
 Previous annual report.
 Magazines & journals.
 Internet.
Techniques for data analysis
Questionnaire method was used as research instrument for this study.
Questionnaire both open ended and closed ended are used for the customers to answer the
questions. Pie charts, bar graph

Limitations of the Study
 The information obtained or the collection of data is limited.
 The study is purely academic.
 Due to time constraints the study is restrict to HASSAN and prohibited from
going deep into the subject.
 Only the customers of AUTO MATRIX were considered as respondents.
 The survey was conducted in this urban sector of respondents thus it cannot be
generalized.
 The information provided by respondents could be biased.

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2.1 Industry Profile
Everything began with the invention of the wheel, an achievement that is
shrouded in the darkness of history. The first known illustration of a vehicle with wheels
is dated to the year 3000 BC. The invention of the wheel ushered in the development of
mobility. Ever more refined mechanical systems and ever more ingenious features for
carts and carriages made transportation and travel easier. The inventions of Karl Benz,
Gottlieb Daimler and Wilhelm Maybach finally ushered in the automotive age.
One idea — how many parents?
Who invented the automobile? Assumptions concerning the answer to this
question differ widely throughout the world. Most Americans believe that Henry Ford
invented the car. In England, many people will tell you that the car was invented by
Charles Rolls and Henry Royce. The widely held French view is that it was Count de
Dion and Georges Bouton who invented the car. In Austria, even highly respected
historians believed for a long time that the Viennese Siegfried Marcus (1831-1890) built
the first car in 1865 when he fitted a stationary engine to a cart and took it for a 200 meter
test run. He went on to build a second vehicle with a four-stroke engine in 1888/89. This
was the source of much confusion for decades because it was incorrectly identified as
having been built in 1877 and was therefore presented as the world's first automobile. 100
years before Marcus, France's Nicolas Joseph Cugnot (1725-1804) designed and built a
vehicle which was later declared to be the first automobile in the world. It was a
monstrous steam-powered affair which is said to have caused a road accident during a test
run in 1769. In 1801 it was taken to the Conservatoire des Arts et Mé´©ers in Paris
without having made any further impact on the history of the automobile.
Switzerland's Isaac de Rivaz (1752-1829) worked on gas engines from 1770 and
was the first person to equip a stationary gas engine with electric ignition. In 1813 de
Rivaz fitted an engine of this type to a vehicle and conducted test runs in the area around
Vevey on Lake Geneva.
In 1883, the French industrialist Edouard Delamare-Deboutteville (1856-1901)
installed a gas engine in a three-wheeled vehicle. The experiment ended when the gas

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container exploded. The frame of a second vehicle with a liquid fuel engine broke during
its first trials. Delamare-Deboutteville gave up.
In the USA, George Selden (1846-1922) claimed that he was the inventor of the
automobile. This son of a patent attorney had filed a patent application for a motor
vehicle in 1879. He was granted the patent in 1895 without ever having built an
automobile. Selden bombarded American car manufacturers with demands for license
fees.
It was not until 1911, following protracted litigation that Henry Ford succeeded in
overturning the mysterious Selden patent.
From a historical perspective, all of these would-be "world's first automobiles"
have one thing in common: the influence which they exerted on the development of
automotive transport was extremely short-lived because none of them had the necessary
qualities to go down in history as a real breakthrough.
In 1886, Karl Benz and the team of Gottlieb Daimler and Wilhelm Maybach
initiated general motorization with their inventions. These gave rise to several hundred
different types of vehicle and design concepts which continue to be applied anywhere in
the world to this day.
2.1.1 Importance of Cars:
The development of the car has had an enormous effect on people s way of life‟
throughout the world.
Probably no other invention, discovery or technological advance created greater and
rapid changes in the society.
2.1.2 Importance of Society:
The development of the car has given many people freedom of movement, it
enables them to decide where they want to go and when the car influences their proper
time and work and how they spend their time and the striking changes in people s time‟
created by a car.

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Began in US how speed arose the whole of the globe especially in distillers
countries but also in developing countries like India, the car is increasingly responding
the patterns of living. When the car was the first produced only the well to do could offer,
soon however prices, behind as produce increased to the growing demand the lower
prices, but the car within reach of more and more people well of urban residing found,
which further increased travel.
2.1.3 Economic Impact:
Such industrialized natures as the U.S, Japan, Germany, France, Britain, and Italy
depend on cars. Cars produced to provide jobs for millions of workers, but even in India
translation with little or not, car produced the widespread use of car has become vital to
the society that a traveler can use of major importance to the economic well being of all
industrial countries and increasing of developing nations home beings making motor
vehicle parts the vehicle needed for growth.
2.1.4 Car – a Necessity Now a Day:
Gone are the times when a car was considered a status symbol. It is now a
necessity. Transport becoming a vital part of human existence and with the advent of the
Nonveau Niche, it s the golden age for the automobile industry. One of 20‟
th
century s‟
biggest achievements are taking is all into the 21
st
century, at full speed.
Since the car is becoming the object of desire of more and more people will go for
small cars which space wise offers the same. Comfort as that of midsize cars. There are
other practical reasons like “SMALL IS BEAUTIFUL”.
Idea to spread, “The narrow and crowded roads of India can cope with small
cars”- most of these cars are tested under very rigorous road and weather conditions. All
companies are hoping that the boom in the automobile industry will ultimately lead to
better infrastructure.

2.2 Company Profile
Company profile of TATA MOTORS LIMITED
Tata Motors Limited is India's largest automobile company, with consolidated
revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in
commercial vehicles in each segment, and among the top three in passenger vehicles
with winning products in the compact, midsize car and utility vehicle segments. The
company is the world's fourth largest truck manufacturer, and the world's second largest
bus manufacturer.
The company's 24,000 employees are guided by the vision to be "best in the
manner in which we operate best in the products we deliver and best in our value system
and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled
out in 1954. The company's manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand)
and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up
an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to
produce both Fiat and Tata cars and Fiat power trains. The company is establishing a
new plant at Sanand (Gujarat). The company's dealership, sales, services and spare parts
network comprises over 3500 touch points; Tata Motors also distributes and markets
Fiat branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the
New York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008. In
2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also exporting these
products to several international markets. Today two-thirds of heavy commercial

vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is
being expanded in other markets. In 2006, Tata Motors formed a joint venture with the
Brazil-based Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international markets. In
2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon
pickup truck, with the Xenon having been launched in Thailand in 2008.
Tata Motors is also expanding its international footprint, established through
exports since 1961. The company's commercial and passenger vehicles are already
being marketed in several countries in Europe, Africa, the Middle East, South East Asia,
South Asia and South America. It has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.
The foundation of the company's growth over the last 50 years 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. With over 3,000 engineers
and scientists, the company's Engineering Research Centre, established in 1966, has
enabled pioneering technologies and products. The company today has R&D centers in
Pune, Jamshedpur, Lucknow, Dharwad in India, and in South Korea, Spain, and the UK.
It was Tata Motors, which developed 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. Within two years of launch, Tata Indica
became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which
India and the world have been looking forward to. The Tata Nano has been
subsequently launched, as planned, in India in March 2009. A development, which
signifies a first for the global automobile industry, the Nano brings the comfort and
safety of a car within the reach of thousands of families. The standard version has been
priced at Rs.100, 000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with
generous leg space and head room. It can comfortably seat four persons. Its mono-
volume design will set a new benchmark among small cars. Its safety performance
exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds
regulatory requirements. In terms of overall pollutants, it has a lower pollution level
than two-wheelers being manufactured in India today. The lean design strategy has
helped minimize weight, which helps maximize performance per unit of energy
consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that
the car has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian
automobile industry, in keeping with its pioneering tradition, by unveiling its new range
of world standard trucks called Prima. In their power, speed, carrying capacity,
operating economy and trims, they will introduce new benchmarks in India and match
the best in the world in performance at a lower life-cycle cost.
Tata Motors is equally focused on environment-friendly technologies in
emissions and alternative fuels. . It has developed electric and hybrid vehicles both for
personal and public transportation. It has also been implementing several environment-
friendly technologies in manufacturing processes, significantly enhancing resource
conservation
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by
working on four thrust areas – employability, education, health and environment. The
activities touch the lives of more than a million citizens. The company's support on
education and employability is focused on youth and women. They range from schools
to technical education institutes to actual facilitation of income generation. In health, our
intervention is in both preventive and curative health care. The goal of environment

protection is achieved through tree plantation, conserving water and creating new water
bodies and, last but not the least, by introducing appropriate technologies in our vehicles
and operations for constantly enhancing environment care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.
2.2.1 Milestones
It has been a long and accelerated journey for Tata Motors, India's leading
automobile manufacturer. Some significant milestones in the company's journey
towards excellence and leadership.
1945: Tata Engineering and Locomotive Co. Ltd. were established to manufacture
locomotives and other engineering products.
1948: Steam road roller introduced in collaboration with Marshall Sons (UK).
1954: Collaboration with Daimler Benz AG, West Germany, for manufacture of
medium commercial vehicles. The first vehicle rolled out within 6 months of the
contract.
1959: Research and Development Centre set up at Jamshedpur.
1961: Exports begin with the first truck being shipped to Ceylon, now Sri Lanka.
1966: Setting up of the Engineering Research Centre at Pune to provide impetus to
automobile Research and Development.
1971: Introduction of DI engines.
1977: First commercial vehicle manufactured in Pune.
1983: Manufacture of Heavy Commercial Vehicle commences.
1986: Production of first light commercial vehicle, Tata 407, indigenously designed,
followed by Tata 608.

1989: Introduction of the Tata mobile 206 - 3rd LCV model.
1991: Launch of the 1st indigenous passenger car Tata Sierra
 One millionth vehicle rolled
out. 1992: Launch of the Tata Estate.
1994: Launch of Tata Sumo - the multi utility vehicle.
 Joint venture agreement signed with M/s Daimler - Benz / Mercedes - Benz for
manufacture of Mercedes Benz passenger cars in India.
1996: Tata Sumo deluxe launched.
1997: Tata Sierra Turbo launched.
 100,000th Tata Sumo rolled out.
1998: Tata Safari - India's first sports utility vehicle launched.
 2 millionth vehicles rolled out.
 Indica, India's first fully indigenous passenger car launched.
1999: 15,000 bookings for Indica registered against full payment within a week.
 Commercial production of Indica commences in full
swing. 2000: First consignment of 160 Indicas shipped to Malta.
 Indica with Bharat Stage 2 (Euro II) compliant diesel engine launched.
 Utility vehicles with Bharat 2 (Euro II) compliant engine launched.
 Indica 2000 (Euro II) with multi point fuel injection petrol engine launched.
2001: Indica V2 launched - 2nd generation Indica.
 100,000th Indica wheeled out.
 Launch of the Tata Safari EX
 Indica V2 becomes India's number one car in its segment.

 Exits joint venture with Daimler Chrysler. 2002:
Unveiling of the Tata Sedan at Auto Expo 2002.
 Petrol version of Indica V2 launched.
 5,00,000th passenger vehicle rolled out.
 Launch of the Tata Sumo'+' Series
 Launch of the Tata Indigo.
2003: Launch of the Tata Safari Limited Edition.
 On 29th July, J. R. D. Tata's birth anniversary, Tata Engineering becomes Tata
Motors Limited.
 3 millionth vehicles produced.
 135 PS Tata Safari EXi Petrol launched
 Tata SFC 407 EX Turbo launched
2004: Tata Motors unveils new product range at Auto Expo '04.
 New Tata Indica V2 launched
 Tata Motors and Daewoo Commercial Vehicle Co. Ltd. sign investment
agreement
 Tata Motors completes acquisition of Daewoo Commercial Vehicle Company
 Sumo Victa launched
 Indigo Marina launched
 Tata Motors lists on the NYSE
2005: Tata Motors rolls out the 500,000th Passenger Car from its Car Plant Facility in
Pune
 Tata Ace, India's first mini truck launched
 Tata Motors wins JRD QV award for business excellence.
 The power packed Safari Dicor is launched
 Introduction of Indigo SX series - luxury variant of Tata Indigo
 Tata Motors launches Indica V2 Turbo Diesel.
 Inauguration of new factory at Jamshedpur for Novus

2006: Tata Motors vehicle sales in India cross four million mark
 Tata Motors unveils new long wheel base premium Indigo & X-over concept at
Auto Expo 2006
 Indica V2 Xeta launched
 Tata Motors first plant for small car to come up in West Bengal
 Tata Motors and Fiat Group announce three additional cooperation agreements
2007: Construction of Small Car plant at Singur, West Bengal, begins on January 2
 Tata Motors launches the long wheel base Indigo XL, India's first stretch
limousine
 Common rail diesel (DICOR) engine extended to Indigo sedan and estate range
 Tata-Fiat plant at Ranjangaon inaugurated
 Fiat Group and Tata Motors announce establishment of Joint Venture in India
 Launch of the Sumo Victa Turbo DI, the new upgraded range of its entry-level
utility vehicle, the Sumo Spacio
 Tata Motors launches Indica V2 Turbo with dual airbags and ABS
2008: Indica Vista – the new generation Indica, is launched.
 Tata Motors' new plant for Nano to come up in Gujarat
 Indigo CS (Compact Sedan), world s first sub four-meter sedan, launched.‟
 Launch of the new Sumo -- Sumo Grande, which combines the looks of an SUV
with the comforts of a family car.
 Tata Motors unveils its People's Car, Nano, at the ninth Auto Expo.
 Tata Motors signs definitive agreement with Ford Motor Company to purchase
Jaguar and Land Rover.
 Tata Motors completes acquisition of Jaguar Land Rover.
 Indica Vista – the second generation Indica, is launched.
2009: Tata Motors launches the next generation all-new Indigo MANZA
 FREELANDER 2 launched in India
 Tata Marcopolo Motors' Dharwad plant begins production.
 Tata Motors launches Nano - The People's Car

 Launch of premium luxury vehicles - Jaguar XF, XFR and XKR and Land
Rover Discovery 3, Range Rover Sport and Range Rover from Jaguar and Land
Rover in India.
2.2.2 Management
Board of Directors:
Mr. Ratan N Tata (Chairman)
Mr. Ravi Kant
Mr. N A Soonawala
Dr. J J Irani
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Nasser Munjee
Mr. Subodh Bhargava
Senior Management:
Mr. P M Telang: Managing Director - India Operations
Mr. Rajiv Dube: President (Passenger Cars)
Mr. C Ramakrishnan: Chief Financial Officer
Mr. R Pisharody: President (Commercial Vehicles Business Unit)
Mr. S N Ambardekar: Head (Manufacturing Operations - CVBU)
Mr. S B Borwankar: Head (Jamshedpur - Plant)
Mr. A M Mankad: Head (Car Plant)
Mr. B B Parekh: Chief (Strategic Sourcing)
Mr. U K Mishra: Vice President (ADD and Materials - CVBU)
Mr. S Krishnan: Vice President (Commercial - PCBU)
Mr. P Y Gurav: Vice President (Corp. Finance - A/c and Taxation)
Mr. A Gajendragadkar: Vice President (Corp. Finance - Business Planning)
Mr. N Pinge: Chief Internal Auditor

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Mr. R Bagga: Vice President (Legal)
Company Secretary:
Mr. H K Sethna
Corporate Communications:
Mr. Debasis Ray: Head - Corporate Communications
2.3 Joint Venture, Subsidiary and Associate Companies
Tata Motors has several joint venture, subsidiary and associate companies:
Jaguar Land Rover
Tata Technologies Ltd. (TTL) and its subsidiaries
Telco Construction Equipment Co. Ltd. (Telcon)
HV Axles Ltd. (HVAL)
HV Transmissions Ltd. (HVTL)
TAL Manufacturing Solutions Ltd. (TAL)
Sheba Properties Ltd. (Sheba)
Concorde Motors (India) Ltd. (Concorde)
Tata Daewoo Commercial Vehicle Company Ltd (TDWCV)
Hispano Carrocera S. A. (HC)
Tata Motors Insurance Broking & Advisory Services Ltd
(TMIBASL) Tata Motors European Technical Centre plc Tata Motors
Finance Limited
Tata Motors Thailand
Tata Marcopolo Motors Ltd (TMML)
Tata Motors(SA) Proprietary Ltd (TMSA)
TML Distribution Company Ltd (TDCL)
2.4 Manufacturing
Tata Motors owes its leading position in the Indian automobile industry to its
strong focus on indigenization. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product evolution-

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design, development, manufacturing, assembly and quality control, is carried out
meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in
the West and Lucknow in the North
2.4.1 Jamshedpur;
Established in1945, the Jamshedpur unit was the company's first unit and is
spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine
Factory, Cab & Cowl Factories, and the Novus. The divestments in March 2000 hived off
the Axle and Engine plants into independent subsidiaries viz. HVAL &HVTL,
respectively.
The Truck Division boasts of two assembly lines. The main assembly line,
measuring 180m in length has 20 work stations with a vehicle rolling out every 8 minuts.
The other line is dedicated to special purpose vehicles and for meeting the requirements
of the Indian Army. The uniqueness of the Factory lies in its possession of advanced
facilities for manufacturing long members comprising of a set-up of 5000 Tones
Hydraulic press line, cut-to-length line for strip preparation purchased from M/s Kohler
of Germany and a Camber Correction line.
Facility for hot forming of axle halves with a 3000 tone press and heating furnace.
Flexibility in manufacturing frames with an off line Proto-typing facility.
The Cab, Cowl & Novus Factory is equipped with state- of- art facilities like
Centralized Paint Shop and automated painting set up, Robot painting, BIW Fabrication
of day & sleeper cabs for trucks, Articulates (Tractor/ Trailer), BIW Fabrication of Cowls
for buses, and other miscellaneous applications.
The fully equipped Foundry, that the unit is supported by, supplies high-grade SG
Iron castings for automobile components and excavators, and is rated as one of the
cleaner, better and highly automated foundries in the world. It has an annual capacity of
42,000 MT of Good castings and makes, both, Gey and SG cast Iron casting. It
manufactures all critical automobile castings e.g. Cylinder Block, Cylinder Head etc. It
has a sophisticated Kunkel Wagner High Pressure Molding line of a rated production
capacity of 90 moulds/ hour. This is supported by a sand cooler and sand mixer from
Kunkel Wagner. Its melting shop has Medium Frequency Induction Furnaces for melting
and Channel Furnaces for holding. The pouring is done by a Channel Press Pour coupled

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with a Steam Inoculation Dispenser. The core shop has a state- of-the- art Cold Box
Machine, making four cores per minute. It has elaborated sand and metallurgical
laboratories. In 1993 the foundry was ISO 9002 certified by the Bureau Veritas Quality
International, which was later followed by the more stringent QS 9000 certification from
the BVQI in the year 2000. Currently it is certified as TS: 16949 by BVC.
2.4.2 Pune;
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and
Chinchwad (130 acres). It was established in 1966 and has a Production Engineering
Division, which has one of the most versatile tool making facilities in the Indian sub-
continent. It houses a Vehicle manufacturing complex which is one of the most
integrated automotive manufacturing centers in the country producing a large variety of
individual items and aggregates. It is engaged in the design and manufacture of
sophisticated press tools, jigs, fixtures, gauges, metal pattern and special tools, as well as
models for the development of new ranges of automobile products. Its capabilities have
enabled Tata Motors to introduce new products and improve existing ones without
resorting to imports of dies or fixtures.
Over the years, this division has developed expertise in design and manufacture
of automated dies, fixtures and welding equipment. Its large design group is fully
conversant with state-of-the-art CAD facilities and manufacturing facilities comprising
of light and heavy CNC machine shops, jigs boring room, plastic template shop, wood
pattern and model pattern shop, five axis precision machine tools and laser control
machines. To cope with such a diverse range, four assembly lines have been
established, one each for MCVs and HCVs, LCVs, Utility vehicles and one for
Passenger Cars (Indica and Indigo).
The Passenger Car Division in 'K' block executes the entire process of car
manufacture over five shops - the engine shop, the transmission shop, press and body
shops, paint shop and the trim and final assembly shop. The shops are fully automated
ensuring that there is minimal chance for error in the manufacturing processes. After the
car is completely assembled, it goes through several checks like wheel alignment,
sideslip test, brake test, shower test, and a short test run before it is ready for dispatch.
All systems such as materials management, maintenance and other activities are

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computerized, enabling smooth operations and minimum inventory needs. The
Electronics Division is engaged in the production of a wide variety of Machine Tool
Controllers, PLCs, Test rig instrumentation, Servomotors, Proximity Switches. In
addition, it has developed a number of components such as flashers, horns, timers that
are used in Tata Motors' vehicles.
Industry experts rate the fully automated Foundries at Chinchwad and Maval
among the best, worldwide. The Iron Foundry at Chinchwad produced 37,000 Tons of
high precision castings in 2006-07 while the Iron Foundry at Maval produced 14000
Tons of spherical Iron castings in 2006-07. These include Cylinder Blocks, Cylinder
Heads, Gear Box Housing, etc. To dispense with the need for outsourcing, an
Aluminum Foundry with an annual capacity of 3,300 Tones has been established.
2.4.3 Lucknow;
Tata Motors Lucknow is one of the youngest production facilities among all the
Tata Motors locations and was established in 1992 to meet the demand for Commercial
Vehicles in the Indian market. The state of art plant is strongly backed by an Engineering
Research Centre and Service set-up to support with latest technology and cater to the
complexities of automobile manufacturing. Fully Built Vehicle business, which is one of
the fast growing areas of our business, is also established in Lucknow. Our plant rolls out
commercial vehicles and is specialized in the designing and manufacturing of a range of
modern buses which includes Low-floor, Ultra Low-floor, CNG & RE Buses the
Lucknow facility also specializes in manufacturing HCBS (High capacity Bus System)
buses.
In light of Company s aggressive growth plans, we are currently in expansion‟
phase and production at Lucknow would grow many-fold in near future. The expansion
shall be in the areas of painting, welding, vehicle assembly & testing and utility services,
driven by latest technology. To achieve these plans we invite people who have good
Technical Knowledge, seek Challenging Opportunities and have a Drive for Engineering
Excellence to come and partner us in our journey.

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2.4.4 Uttarakhand;
The company has set up a plant for its mini-truck Ace and the passenger carrier
Magic (based on the Ace platform) at Pantnagar in Uttarakhand. The plant began
commercial production in August 2007. This is the company's fourth plant, after
Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger vehicles)
and Lucknow (commercial vehicles). The plant is spread over 953 acres, of which 337
acres is occupied by the vendor park. State-of-the-art facilities include weld shops, paint
shops, engine and gear box shops and assembly lines. The company has invested over
Rs.1000 crores in the plant. Vendors for the vehicle have made additional investments to
set up their plants in the vendor park adjoining the plant. The operation has generated
about 7500 direct and indirect jobs in the plant, among vendors and service providers in
the area.
2.5 Awards
 Car Plant Pune bags Safety, Health & Environment Award.
 Tata Motors Jamshedpur wins Energy Conservation Award
 Tata Motors bags two awards for excellence in IT implementation
 Land Rover Discovery 4 named best 4X4 at the 'What Car Awards 2010
 Auto critics recognize new generation Tata Motors Cars
 Tata Motors has received the prestigious NDTV Profit Business Leadership
Award
 Tata Motors among India s most Trusted Brand in cars‟
 Tata Motors wins award at the Bangkok International Motor Expo
 CVBU Pune wins Rajiv Gandhi National Quality Award for 2007
 Tata Motors receives Uptime Champion Award 2007
 Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL
 Tata Motors bags National Award for Excellence in Cost Management
 Tata Motors' TRAKIT bags silver award for 'Excellence in Design'
 Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality
Award
 Tata Motors was awarded four prestigious honors, at the 'CNBC TV18- Autocar
Auto Awards', and the 'TNS Voice of the Customer Awards'
 Tata Motors chosen as India's Most Trusted Brand in Cars

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 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'.
 ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards.
 Tata Motors receives JRD QV awards for Business Excellence.
 'Car Maker of the Year' Award for Tata Motors
 Tata Motors is 'Commercial Vehicle Manufacturer of the Year'
 TNS Voice of the Customer Award for Indica Diesel.
 Tata Motors wins the prestigious 'Corporate Platinum' Award at the India
Manufacturing
 Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility.
 Tata Motors CVBU Pune wins National Energy Award
 TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES.
 Tata Indica and Tata Safari EXi win awards.
 Tata Motors-Car plant gets two ISO certifications.
 Tata Motors Receives "India's Best Employer" Award From The Employee.
 Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award
institute.
 Tata Motors receives all India trophy for Top Exporters.
 Tata Indigo ad campaign wins Effie award.
 Golden Peacock Environment Management Award - 2003.
 Tata Engineering was conferred Bharat Gaurav Puraskar.
 Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto
Awards - 2003
 National Best Training Establishment Award
 National Award for Successful Commercialization of Indigenous Technology.
 National Award for R&D Efforts.
 Regional Top Exporter's Trophy.
 Best Company Award at Work skills Competition.

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2.6 Brief History of Auto Matrix, Hassan
(Authorized Dealers for TATA MOTORS)
AUTO MATRIX is the authorized dealers and distributors of TATA MOTORS in
and around HASSAN and CHICKMANGALUR. This organization is more than 7 years
old and regarded amongst the most loyal dealers to TATA MOTORS. It was started by
Mr. RAJENDRE KUMAR in the year 2003. Mr. RAJENDRE KUMAR who is very
smart businessman marketed TATA PRODUCTS in HASSAN over the years built a very
strong and unshakable relationship with TATA motors. AUTO MATRIX is one amongst
the most successful and trusted dealer of TATA MOTORS all over Karnataka. AUTO
MATRIX is situated in B.M. road, HASSAN. The working hour of the showroom is from
10.am to 7 pm apart from this they also have a service station at backside of the
showroom.
2.6.1 Advertising Techniques adopted by AUTO MATRIX, Hassan
AUTO MATRIX gives first importance to advertising. At frequent intervals,
Advertisement appears in newspapers and magazines. Cars like Indigo, Indica and now
the Sumo Grandy, launched by the company, AUTO MATRIX advertises with great
enthusiasm.
AUTO MATRIX often selects print media to advertise their product. By this way
it has improved their sales to greater heights. Clarion advertising Company, Sands
Advertising Agency, Trishul Advertisement and promodrome Advertising Company
designs its advertising campaigns.
Besides these promotional activities are also done pasting stickers on cars that are
delivered and serviced by the AUTO MATRIX, provision of financial assistance to the
customers through link with financial institutions etc.
As mentioned above advertisement is major tool. It is accomplished in order to
make the public aware of the product and create an impression on the minds of the
people.

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2.6.2 Services Provided By Auto Matrix, Hassan;
AUTO MATRIX, Hassan, uses judicious mix of service with its products offering
to meet the customer s requirements. It has recognized the importance of service to‟
exceed customer s expectations, the range of services provided by AUTO MATRIX,‟
Hassan can by broadly classified under the following three heads.
A part from these regular services like exchange schemes, they also have in-house
spare parts section to add to the convenience of customers obtaining various components
at one place. They also provide customized car seat covers and designs.
Apart from this they also provide car stereos of customers choice.‟
Now let us discuss about the various services provided by AUTO MATRIX,
Hassan
 Pre – Sale Service.
 After Sales Service.
 Free Service.
 Paid Service.
 Regular Service (Paid Service).
 Accidental repairs.
 Warranties and running repairs.
2.6.3 Sales Promotion in Auto Matrix, Hassan:
AUTO MATRIX, Hassan reveals that this outlet depends much on the sales
promotional activities of the parent Company, M/s TATA MOTORS that is found not
only efficient but also effective. In addition AUTO MATRIX undertakes separate
promotional activities in Hassan and Chickmangalore City.
In AUTO MATRIX the sales promotion activity is a combination of consumer
sales promotion and dealer sales promotion.
The other sales Promotions carried out are, demonstration and instructions.
In the showroom, the following activities are performed with a view to provide
proper information and adequate exposure to the potential buyers.

a. Explanation of Product.
b. Explanation of usage and Safety Measures.
c. Pre-delivery Service and Demonstration.
d. Periodical training on minor Maintenance.
e. Explanations about tool kit
2.6.4 Organization structure of AUTO MATRIX
Managing director
Sales general manager Finance general manager Service general manager
Sales manager (senior Sales manager Sales manager Showroom
manager UV and SUV) (manager for FEAT) (manager for car) manager
Seven Seven Seven Seven
executives executives executives executives
Workshop Warranty Regular/Floor Spares Bode shop
manager manager manager manager manager
Workshop team

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2.7 Products / Services
2.7.1 Tata Indica;
More Cars per Car
December 1998 saw India's first hatchback car Tata Indica developed
indigenously by Tata Motors Ltd. After its launch this car has placed itself at a prominent
place in small car market that carries compact but classy looks, roomy interiors and a
powerful engine to coup with tough Indian road conditions. Gone through remarkable
model revamp Tata Indica has become a hot cake in this segment.
Tata Indica car was the epitome of the vision for every Indian that Ratan Tata had.
Ease of maneuverability, small-size with large space, comfortable with safety of
passengers are the striking features that are accredited to Tata Indica. Since its launch
Tata Indica saw number of changes in its technology combined with the state-of-the-art
features. Tata Indica has been launched in three upgraded versions as Indica V2 (in year
2002), Indica V2 Turbo (in year 2005) and Indica V2 Xeta (in year 2006).
The Indica V2 was the revamped version of Tata Indica. Indica V2 was launched
with lots of exciting features like: new front grille, clear lens head & tail lamps, muscled
sporty look, designer alloy wheels, refurbished interiors combined with micro processor
based engine to deliver superior fuel efficiency.
The Indica V2 Turbo was launched with turbo engine to offer turbo charger that
make turbo diesel engine more advanced with power output of 68PS@ 4500 rpm. Indica
V2 Turbo was launched with lots of new features like: Chrome-plated strip on hood,
internally adjustable Outer Rear View Mirror, plush fabric used in interiors, adjustable
head rest and rear seat, new electronic instrument cluster, power Steering, power
Windows.

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Price
Available Versions Price (Rs.)
Tata Indica V2 DLE BSII 3,41,647
Tata Indica V2 DLE BSIII 3,48,821
Tata Indica V2 DLS BSII 3,58,855
Tata Indica V2 DLS BSIII 3,70,112
(Please Note: The prices are ex-showroom and based on the close approximation. Please
check the latest prices and variant specifications with your dealer)
2.7.2 Tata Indigo MANZA;
Luxury within Range
Tata Motors has launched the all new Indigo Manza at a surprising cost of Rs 4.8
lakhs. The car simply shows how effectively Tata Motors has progressed as a car maker.
Tata Manza is a new and updated version of Tata's Indigo Vista. A combination of space,
features, technology and looks Manza is available at a competitive and surprising price of
Rs 4.8 lakhs. The segment of sedans is surely at an all time hot point with Fiat Linea,
Honda City, Maruti Suzuki SX4 and the all new Tata Indigo Manza.
Sleekly styled and very well built, the new multi-featured Indigo Manza is sure to
gear up the sedan car segment in India. Packed with exciting features like Bluetooth

connectivity, outdoor temperature sensor, three barreled headlamps and power outlets for
charging laptops and other mobile devices Indigo Manza has a centrally mounted MID
(Multi Information Display) which is generally available in the higher end vehicles. Other
attractive features of Tata Manza like ABS (Antilock Braking System) and Airbags offer
a great safety. Fully fabricated (leather as an option) and comfortable seats offer a high
degree of comfort. Equipped with the same 1.4L, 1396cc MPFI petrol engine producing
85PS of maximum power as Indigo, Manza is Assured Luxury at Affordable Price.
Company Segment USP
Tata Motors Limited Sedan Luxury at affordable price.
Striking Features
Excellent Engine Performance.
Ample Space to make driving comfortable.
Great Mileage in city traffic.
Affordable Price of Rs 4.8 lakhs only.
Model Variants
Indigo Manza Aqua Saffire
Indigo Manza Aura Saffire
Indigo Manza Aura (ABS) Saffire
Indigo Manza Aura+ Saffire
Indigo Manza Aqua Quadrajet
Indigo Manza Aura Quadrajet
Indigo Manza Aura (ABS) Quadra jet
Indigo Manza Aura+ Quadra jet

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Price
Model Variant Price (Rs. in lakhs)
Indigo Manza Aqua Saffire 4,80,000
Indigo Manza Aura Saffire 5,15,000
Indigo Manza Aura (ABS) Saffire 5,40,000
Indigo Manza Aura+ Saffire 5,90,000
Indigo Manza Aqua Quadra jet 5,70,000
Indigo Manza Aura Quadra jet 5,99,000
Indigo Manza Aura (ABS) Quadra jet 6,29,000
Indigo Manza Aura+ Quadra jet 6,75,000
2.7.3 Tata Indigo CS;
Class Starts Early
The launch of Tata Indigo CS is all set to redefine the current sedan car segment
in India. Indigo Compact Sedan (CS) car has been dubbed as world's first sub four meter
sedan, packed with the large capacity space, sleek-stylish design, efficient engine
technology for both petrol and diesel variant and this world's shortest sedan has been
given price tag starting from 4.0 lakhs.

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Tata Indigo CS (Compact Sedan) car is the all-new entrant into the sedan car
segment launched by India's leading auto company Tata Motors Limited. The launch of
Tata Indigo CS is an attempt to encash the lowered excise duty benefits for limiting the
overall length and engine class in passenger cars. Tata Motors has dubbed the all new
Indigo CS as "sub four-meter sedan" (world's shortest sedan car) and packed it with the
size of a hatchback and spaciousness of a sedan car. Tata Indigo Compact Sedan car
promises to become a complete pack of comfort, convenience and power packed
performance.
Under the hood of Indigo CS lies a 1.2 liter, 65 PS, MPFI engine for petrol variant
and a 1.4 litre TCIC engine for the diesel version. Tata Indigo CS sports number of
interior and exterior features that gives it a look that one would like to flaunt. Beige
interiors (in petrol variant), new AC facia, reading lamp, sporty steering wheel and the
instrument panel. The spaciousness of sedan, ease of handling like a hatchback and power
packed performance of Tata Indigo CS comes with a competitive price between Rs. 4.0-
5.0 lakhs. Indigo CS Car is available in four variants of both petrol and diesel and
features seven attractive colors.
Striking Features
New styled Front Grille and front and rear bumper
Soft touch finest quality seats
Centre Cluster & Air Conditioning Controls
Anti-glare Inner Rear View Mirror
Sporty Steering Wheel
Larger trunk space of 380 liters
Independent McPherson struts equipped suspension system
Color Options
Scarlet Red
Sparkling Gold
Mica Grey
Carbon Black
Cosmic Blue
Mint white

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Arctic Silver
Price & Variants
The price range of Tata Indigo Compact Sedan car start with Rs 3.79 Lakhs. The
ex-showroom (in Mumbai) price of various models are given below:
Model Variant Price in Rs.
Tata Indigo CS GLE 3,72,954.00
Tata Indigo CS GLS 3,91,400 .00
Tata Indigo CS LE TDI 4,11,397.00
Tata Indigo CS LS TDI 5,07,236.00
Tata Indigo CS LS DICOR 5,35,204.00
(Please Note: The prices are based on the close approximation. Please check the latest
prices and variant specifications with your dealer)
2.7.4 Tata Indigo Marina;
Carry Your World in Style with You
Tata Indigo Marina is a Station Wagon Vehicle packed with power and dressed in
style with unbelievable performance which would allow you to 'carry your world in style .‟
Fuel efficient and powerful engine, high-end entertainment system, big trunk space and
refined suspension are the eye-catching features of Marina. The large size space with

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great comfort and style has transformed Indigo Marina into useful Multi Utility Vehicle
with elegance of Sedan.
Tata Motors Ltd., a flagship company of Tata Group, with the launch of Tata
Indigo Marina created the new set of standards in terms of style, comfort and space. Tata
Indigo Marina is the 2nd car model in Indigo series since its launch in December 2002.
With innovative design and attractive features, Tata Indigo Marina makes you to carry
your world in style and promises big space, big comfort and also big style. Tata Indigo
Marina is packed with the luxury of a Sedan and the convenience of a Multi-Utility
Vehicle (MUV). Indigo Marina has a innovative design that provides big trunk space of
670 liters that is convertible to 1370 liters, upgraded soft leather seats, rear seat armrest,
new instrument cluster, individual LCD screens gas filled shock absorbers, and 14" classy
wheels are teamed up for the premium driving experience.
Tata Indigo Marina has 05 striking colors and a price tag of Rs. 4.60-5.60 Lakhs.
Available for sale at your nearest Tata Motors dealer in both Petrol and Diesel variants,
Tata Indigo Marina comes with 1.4 litre high performance 85 PS petrol engine and the
highly fuel efficient 62 PS turbo charged diesel engine.
Company Segment USP
Tata Motors Ltd. Mid Size (C ), Station Wagon segment Stylish and Spacious
Striking Features
Improved and powerful engine delivering fuel-efficient output.
New front fascia and dual beam headlamps.
Central arm rest on rear seat and height adjustable driver seat.
Individual LCD screens with built-in-video player with MP3 compatibility.
Improved interiors include leather wrapped gear shift knob, sporty steering wheel,
analog clock and electronic instrument cluster.
Big trunk space of 670 later that is convertible to 1370 later.
Convenient power socket of 12V DC one at the rear seat and one for front
passenger.
Three-link independent rear suspension, with gas filled shock absorbers for
comfortable riding.

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Model Variants
Tata Indigo Marina GLS - BS III
Tata Indigo Marina GLX - BS III
Tata Indigo Marina LX - BS III
Tata Indigo Marina LS - BS III
Tata Indigo Marina LX Dicor - BS III
Colors Variants
Sunrise Pearl
Mint White
Carbon Black
Arctic Silver
Starry Grey
Price
The all new Tata Indigo Marina has been priced between Rs. 4.60-5.60 Lakhs.
Quotes-Unquote’s
"We believe that the Indigo Marina will create a new segment in the market. Tata
Motors has always endeavored to grow the market by prying open new segments and it
will be our efforts to have the Indigo Marina emulate the success of its predecessors in
our product portfolio."
2.7.5 Tata Nano;

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Finally the wait is over. World's most low priced car, Tata Nano, with the price
tag of Rs. 1 lakhs is all here. Also called People's Car Tata Nano is the realization of a
dream, car for the common man, seen by Ratan Tata, Chairman of Tata Group. Looking
nice from the outside and promising to provide better from inside, the Tata Nano features
are all set to change the modern face of the Indian automobile Industry.
The people's car, Tata Nano was finally launched in Mumbai on 23rd March,
2009.
"The journey started six years ago when we overtook
what looked like just another business... a business to
give Indian families an affordable transport means, a
small car which was very low in cost. It is to the credit
of the team what we have achieved today" said Ratan
Tata at the launch of the car.
Ratan Tata (Chairman, Tata Group) announced at the launch that the standard
model of Tata Nano will have a dealer price of Rs. 100,000 a promise that he has lived up
to despite a steep rise in the prices of steel and other input costs. Ratan Tata has fulfilled
his promise of delivering the world s cheapest car, Tata Nano which is safe, affordable‟
and fuel efficient at the same time. The initial 1 lakhs customers which would be picked
through a computer draw would be promised price protection which means they will be
getting the cars as per the promised launch day prices despite any economic conditions in
the future. This would surely be a big reprieve for the initial customers.
"A promise is a promise", said Ratan Tata. Nano launched by Tata Motors is
going to change the face of Indian automotive industry. With this launch India has most
definitely marked its presence in the global automotive industry. A lot has been talked
about this car and another first has been associated with this car. Usually with the launch
of a new product a company goes into a spending spree in terms of marketing of the
product. However, Nano managed to get free publicity because of the hype which was
associated with every move that it made. Be it the starting controversy over the Singur
project or the hype of the launch day which was tracked through daily countdowns on the
visual media, the car has been in news for a long time now.

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Color Options:
Nano base: Bright red, ivory white, summer blue.
Nano CX: Bright red, Ivory white, Summer blue, Champagne gold, Lunar silver
Nano LX: Champagne gold, Lunar silver, Sunshine yellow
Price
The standard model, the CX and the LX are the 3 variants of the new Tata Nano.
The non AC standard version of the car comes with an ex-factory price of Rs 1 lakh and
will cost Rs 1.12 lakh at showrooms in Pant Nagar, where the company is making the car.
In Delhi, it will cost just over Rs 1.23 lakh (Rs 1.34 lakh in Mumbai). The AC version
would be priced at Rs 1.48 lakh in Delhi and Rs 1.6 lakh in Mumbai, while the deluxe
version would cost 1.72 lakh in Delhi (Rs 1.85 lakh in Mumbai). The booking amount
would range from Rs 95,000 to Rs 1.4 lakh for different versions
2.7.6 Tata Sumo Grande;
More Than Meets the Eye
Tata Motors, with the Sumo Grande, has come up with its new entrant in the Multi
Utility Vehicle segment. The all new Sumo Grande is boasting a completely changed
styling, design and power packed features. This MUV is packed with cutting edge engine
and transmission technology for easy riding in tough conditions. It has lots of spacious
and plush qualities in the interiors that give a comfy experience to all the passengers.
Indian auto giant Tata Motors has come up with its all new version of Multi
Utility Vehicle (MUV), Sumo with a unique-catchy name of The Sumo Grande, that
promises to deliver "more than meets the eye". Casted with the blend of elements that
offers the stylish-sporty looks of a Sports Utility Vehicle (SUV) with the comfort-

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convenience and performance of a family car. The clear lined outlook and the roomy-
comfy interiors of the Sumo Grande car is perfectly complimented by the strong
performance of latest engine and transmission technology that makes sure that all the
passengers get a superb riding experience.
Under the hoods of all new Tata Sumo Grande, lies a powerful 2.2 L Direct
Injection Common Rail (DICOR) engine that delivers 120 ps of refined power with 250
nm torque. The re-designed front fascia of Sumo Grande looks distinctive, supporting the
strong on road presence of this MUV. Sumo Grande offers ample legroom and headroom
through its spacious seating, the dual HVAC outlets, sporty-plush centre console, MP3
player with IPod interface are some of the highlighting features of this grand MUV.
Launched in three variants of LX, EX and GX, the Tata Sumo Grande is available
in six sizzling colors. The ex-showroom price of Sumo Grande starts at Rs. 6.55 lakhs to
Rs.7.49 lakhs.
Company Segment USP
Tata Motors Limited Multi-Utility Vehicle (MUV) A Sporty Family Car.
Striking Features
Strong muscular looks through revamped front fascia and sporty chrome plated
tail lamps
Spacious interiors with comfortable seat rows offering ample space for legs,
shoulders and head
Versatile storing capacity by folding rear seats
Separate Ac vents for 2nd and 03rd row seats
Attractive centre console and newly styled steering wheel
06 speakers Alpine CD/MP3 player with an Ipod interface
Height adjustable seats with tilt steering
Small turning radius of 5.25 meter
Colors Options
Marine Blue
Zephyr Green

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Quartz Black
Mineral Red
Sunset Orange
Arctic Silver
Variants & their price
Version Price (ex-showroom)
Tata Sumo Grande LX Rs. 6,70,046
Tata Sumo Grande EX Rs. 7,08,571
Tata Sumo Grande GX Rs. 7,68,147
2.7.7 Tata Safari;
Reclaim Your Life
Reclaim your life with fresh and revamped Tata Safari which is here to rule the
Sports Utility Vehicle (SUV) segment with the stunning looks, awesome features and
power of new age TCIC, DICOR and MPFI engines with state-of-the-art technology. Tata
Safari comes powered with Turbo Charged Inter-cooled (TCIC) Diesel, 115 PS Direct
Injection Common Rail (DICOR) Diesel, and 127 PS, Multi-point Fuel Injection (MPFI)
Petrol engine to deliver a robust performance.

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The all new Tata Safari with its sporty presence and amazing interiors and
exteriors makes the SUV distinctive on Road. Roof -mounted AC, lumbar support seats
with rear arm rest, adequate storage space, DVD/MP3 system with dual LCD screens,
leather wrapped steering wheel, silver finish console, and body colored trimmings are few
luxury and comfort features of Tata Safari apart from advanced safety features like
antilock braking system (ABS) and dual airbags as standard fitment.
Company Segment USP
Tata Motors SUV (Sports Utility Engine Options of TCIC, DICOR and
Ltd. Vehicle) MPFI
Striking Features
New generation 2.2 L Dicor (Direct injection common rail) engine
Two Tone Beige Interiors, wood-finish center console and leather upholstery
Tubeless Alloy Wheels
Electric shift-on-the-fly 4 Wheel Drive mechanism
DVD / MP3 System with LCD Screen
Height Adjustment In Driver's Seat and electrically adjustable side-view mirrors
Power Steering and Power Windows At Front & Rear
Dual Air Bag, Anti Locking Braking System (ABS) With EBD.
Front Seat Belt Warnings, door open warning
Leather Wrapped Steering Wheel
New spare wheel cover
Model Variants
Tata Safari 4x2 LX TCIC
Tata Safari Dicor 2.2 VTT
Tata Safari MPFI Petrol.

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09 Colors options of Tata Safari
Light Gold
Arctic Silver
Quartz Black
Passion Red
Mountain Green
Steel Blue
Pearl White
Cycus Grey
Arctic White
Price
Model Variants 4 X 2 4 X 4
Safari DICOR 2.2 LX 770,761 N.A.
Safari DICOR 2.2 EX 903,030 989,501
Safari DICOR 2.2 GX 988,483 1,079,896
Safari DICOR 2.2 VX 1,088,487 1,179,228
Quotes-Unquote’s
"Tata Safari has created a premium position for itself in the Indian market and is
the highest selling SUV in the above-Rs. 7 lakh category. The Safari brand grew by 18.5
per cent last fiscal and is growing by 18 per cent this year. It has always defined new
standards for luxury and comfort for vehicles in its class. The Tata Safari - petrol is
amongst the most powerful SUVs available in the country and offers unmatched content
and specifications. It is a perfect blend of technology, performance and safety for its price
level."

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2.7.8 Fiat Linea;
The launch of Linea by Fiat stable in India would add another gem in the crown of
sedan cars segment. This upcoming car model from the leading auto maker of Italy would
be an attempt to raise the sale bar while facing the challenges posed by its arch rivals like
Honda City, Hyundai Verna, Ford Fiesta and Maruti Suzuki SX4. So simply read on to
find out more about the fascinating features of Fiat Liena.
Eying sharp to churn more bucks out of the sedan car market of India, the Italian
car major Fiat Auto is gearing up to launch Linea as a mid-size sedan car, by the end of
year 2008. In feel of strong competition by other big auto players like Honda, Ford,
Hyundai and Maruti, Fiat auto, with the launch of Fiat Liena would target the small
family segment in India. The design team of the Fiat Style centre has put lots of brain to
carve out a four-door sedan car to appeal all. To think something big for the said segment,
Fiat has come up in India having a joint venture (JV) with Indian auto major Tata Motors.
The finely tuned interiors of Fiat Linea represent a blend of elegance and
functionality. Inside the Fiat Linea everything has been put so thoughtfully, right from the
pedals to steering wheel and from front seats to the rear seats. Sporty instrument console
with digital illuminated panel, controls mounted steering wheel, rear seats with head rests,
high-class entertainment system and voluminous space for storing needs are enough to
make it clear that Fiat Linea lets you feel special when you are inside it.
Fiat Linea would be launched in both petrol and diesel version with different
engine capacities of 1.3 & 1.4 litre options. Fiat Linea car will come up to rock the Indian
roads with ten cool color options and may price somewhere between Rs.7-8 Lakhs.

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Company Segment USP
Fiat India Private Petrol-78PS/115Nm
Limited
Sedan
Diesel - 90PS/200Nm; 120PS/206Nm
Striking Features
Dressed with dynamic outline having finest chrome outline.
Sporty wheel-rims and bumpers.
Linea comes packed with fuel-efficient three engine variants.
Illuminated digital console panel.
Rear seat headrests.
Spacious luggage capacity of 500 L.
Responsive suspension system for great driving pleasure.
Maximum levels of safety of passengers by ABS and EBD. It also comes with
side and roof bags.
The engine of Fiat Linea comes loaded with FPS (Fire Protection System) that
stops the fuel supply to the engine, in case of need.
Variants
Fiat Linea 1.4 - 8v
Fiat Linea 1.4 16v T-Jet
Fiat Linea 1.3 Multi jet 16v
Price
The price of this upcoming luxury sedan car Fiat Linea may be between Rs. 7.0-8.0
Lakhs.

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Color Options
Fiat Linea will be made available for sale with 10 sizzling color options as follows:
Cool Jazz Blue
Techno Grey
Flamenco Red
Lullaby Blue
Fox-Trot Azure
Minimal Grey
Rockabilly Black
Breakdance Green
Ambient White
2.7.9 Fiat Grande Punto:
With the grand launch of Fiat Grande Punto in New Delhi, India on 17th June
2009, the joint venture between Fiat Motors (Italy) and Tata Motors (India) is all set to
revolutionize the hatchback car segment of India. Fiat Grande Punto, the premium
hatchback car is equipped with many features including an impressive design, spacious
interiors, world class safety features and the power of advanced and ultra responsive
multi jet engine.
The hatchback car segment has got its newest entrant in the form of the Fiat
Grande Punto. This would be the first product from the joint venture between Italy's
leading car maker Fiat Motors and India's trusted car maker Tata Motors. Fiat Grande
Punto was launched in New Delhi, India on 17th June, 2009. The Grande Punto is a
premium B-segment hatchback car powered with a 1.3-litre multi jet diesel engine that is

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similar to the Common Rail Direct Injection (CRDi) technology capable of generating an
output of 75bhp.
Fiat Grande Punto boasts of a stunning sporty look with host of value additions in
terms of design, comfort, safety, style and space. The interiors of Fiat Grande Punto have
quality fabric seats, adjustable driver s seat, roomy boot space, dashboard and instrument‟
panel in catchy design. The larger wheelbase gives Fiat Grande Punto a big presence on
the road.
The launches of the Fiat Grande Punto will definitely give good competition to cars
like the Maruti Suzuki Swift and Hyundai i20. Punto is temptingly priced a few notches
below the recently launched Honda Jazz in this segment and this very attractive pricing
will surely woo the Indian customers.
Company Segment USP
Fiat India Private
Hatchback
Innovative look with practical features for comfort,
Limited safety, performance and space
Striking Features
Designed by world renowned Giorgetto Giugiaro
Nicely crafted styling for aerodynamic and sporty
presence Catchy and clear instrument panel
Comfortable Height adjustable driver seat for better sitting posture
Optimum power performance from dialogic transmission
Secured by active safety features like: ABS, EBD, ESP incorporating Anti Slip
Regulation system
Dual front air bags, designed on an energy absorbing body shell
Variants
Fiat Grande Punto 1.2 Fire Petrol
Fiat Grande Punto 1.4 Fire Petrol
Fiat Grande Punto 1.3 Multi jet Diesel

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Price
Fiat Grande Punto is priced as follows:
Type: Grande Punto Petrol
1.2 Fire Active- Rs. 399,552
1.4 Fire Dynamic Rs. 466,562
1.4 Fire Emotion Rs. 506,573
1.4 Fire Emotion PAC Rs. 561,581
Type: Grande Punto Diesel
1.3 Multi jet Active- Rs. 485,567
1.3 Multi jet Dynamic Rs. 516,574
1.3 Multi jet Emotion Rs. 556,579
1.3 Multi jet Emotion PAC Rs. 611,590
Color Options
Exotica Red
Minima Grey
Medium Grey
Electric Blue
Bossa Nova White
Hip Hop Black
2.8 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.‟

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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 Wholesaler & Retailers
Quality Discounts
2.8.1 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 „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 s 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
department ensures that the customer does not face any inconveniences of a defective
product.

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2.8.2 PRICE (Pricing Strategy, Alterations, Discounts)
a. Pricing Strategy: The prices are fixed keeping in mind a number of factors. As told by
Mr. Desai, 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
Market Condition
Costs incurred
Profit percentage desired by the company.
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.
2.8.3 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, and Internet etc. The dealer
conducts point-of-purchase displays to advertise the products. The advertisements done
by the company help the dealer to capitalize on the market.

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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 company 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 company takes serious measures to maintain
good public relations. The company follows business ethics to ensure that the customer is
satisfied and receives good service whenever and wherever he desires
2.8.4 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 company at a
negotiated price. The MRP is fixed by the company and the dealer gets a profit within
these prices. As the company 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 Government. Sometimes, bulk quantities of
vehicles are ordered by a Government department or a private company. The sales,
distribution and billing of these are looked after by the company itself.
b. Physical Distribution: The commercial vehicles are manufactured at Jamshedpur,
Lucknow and Pantnagar 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.

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2.9 SWOT analysis of Tata motors
Strengths
The internationalization strategy so far has been to keep local managers in new
acquisitions, and to only transplant a couple of senior managers from India into
the new market. The benefit is that Tata has been able to exchange expertise. For
example after the Daewoo acquisition the Indian company leaned work discipline
and how to get the final product „right first time.‟
The company has a strategy in place for the next stage of its expansion. Not only
is it focusing upon new products and acquisitions, but it also has a programme of
intensive management development in place in order to establish its leaders for
tomorrow.
The company has had a successful alliance with Italian mass producer Fiat since
2006. This has enhanced the product portfolio for Tata and Fiat in terms of
production and knowledge exchange. For example, the Fiat Palio Style was
launched by Tata in 2007, and the companies have an agreement to build a pick-
up targeted at Central and South America.

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Weaknesses
The company s passenger car products are based upon 3rd and 4th generation‟
platforms, which put Tata Motors Limited at a disadvantage with competing car
manufacturers.
Despite buying the Jaguar and Land Rover brands; Tata has not got a foothold in
the luxury car segment in its domestic, Indian market. Is the brand associated with
commercial vehicles and low-cost passenger cars to the extent that it has isolated
itself from lucrative segments in a more aspiring India?
One weakness which is often not recognized is that in English the word „tat‟
means rubbish. Would the brand sensitive British consumer ever buy into such a
brand? Maybe not, but they would buy into Fiat, Jaguar and Land Rover.
Opportunities
In the summer of 2008 Tata Motor s announced that it had successfully purchased‟
the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of
the World s luxury car brand have been added to its portfolio of brands, and will‟
undoubtedly off the company the chance to market vehicles in the luxury
segments.
Tata Motors Limited acquired Daewoo Motor s Commercial vehicle business in‟
2004 for around USD $16 million.
Nano is the cheapest car in the World - retailing at little more than a motorbike.
Whilst the World is getting ready for greener alternatives to gas-guzzlers, is the
Nano the answer in terms of concept or brand? Incidentally, the new Land Rover
and Jaguar models will cost up to 85 times more than a standard Nano!
The new global track platform is about to be launched from its Korean (previously
Daewoo) plant. Again, at a time when the World is looking for environmentally
friendly transport alternatives, is now the right time to move into this segment?
The answer to this question (and the one above) is that new and emerging
industrial nations such as India, South Korea and China will have a thirst for low-
cost passenger and commercial vehicles. These are the opportunities. However the
company has put in place a very proactive Corporate Social Responsibility (CSR)

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committee to address potential strategies that will make are operations more
sustainable.
The range of Super Milo fuel efficient buses are powered by super-efficient, eco-
friendly engines. The bus has optional organic clutch with booster assist and better
air intakes that will reduce fuel consumption by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car business for
40, 50 or more years. Therefore Tata Motors Limited has to catch up in terms of
quality and lean production.
Sustainability and environmentalism could mean extra costs for this low-cost
producer. This could impact its underpinning competitive advantage. Obviously,
as Tata globalizes and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle segments,
it has left itself open to competition from overseas companies for the emerging
Indian luxury segments. For example ICICI bank and DaimlerChrysler have
invested in a new Pune-based plant which will build 5000 new Mercedes-Benz
per annum. Other players developing luxury cars targeted at the Indian market
include Ford, Honda and Toyota. In fact the entire Indian market has become a
target for other global competitors including Maruti Udyog, General Motors, Ford
and others.
Rising prices in the global economy could pose a threat to Tata Motors Limited on
a couple of fronts. The price of steel and aluminum is increasing putting pressure on the
costs of production. Many of Tata s products run on Diesel fuel which is becoming‟
expensive globally and within its traditional home market

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3.1 Introduction
In a business environment characterized by an increasing unhealthy competition,
greater complexity, shorter product of life cycle, greater rate of new product failure,
product, process and technology obsolescence, increasing debates on privatization.
Marketing occupies a central position in business. It is not any has an inherent mechanism
of facing the turbulent environment but also goes to a long way in building and
maintaining the company image, which is very crucial for the effective functioning of any
company. In fact, success or failure of the firm is determined by marketing strategies in
the exploitation of the best possible mix if 4 p s viz., product, price, promotion and place.‟
Among the 4 P s of marketing mix, a promotion is of great significance to‟
marketing practitioners. The best effort or best of product would be meaningless or of no
use without promotional efforts. If the prospective customer are unaware of the product
availability, inability, benefit affordability above all its capability of satisfying consumer
needs he would be grouping in the market dominated by many such products. Therefore,
in order to survive and grow in the market, and also grow in the market, also retain the
brand image and to face cutthroat competition, promotion is a vital tool in the hands of
marketer.
Advertising is one of the activities of promotional mix. Advertising is a powerful
mean of communication and a vital marketing tool. It helps to bridge the gap between
underdeveloped and untapped resource and the satisfaction of human wants. In modern
business world, no business can survive without advertisement. Advertising generates
sales over a period of time through sustained efforts involving, the informed and the
target audience, through persuasion, reminding, reassurance, image building, developing
brand loyalty, developing an inclination to switch to our products.
Advertising is defined as, the printed, written, spoken or pictured representation of
a person, product service or movement, openly sponsored by the advertiser and at the
expense for the purpose of influencing sales, use, votes or endorsements”. Thus
Advertising consist of all the activities involved in presenting to a group of non
personal, oral or visual, openly sponsored message regarding a product ,service or an
idea.

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3.2 Definitions
“ The dissemination concerning an idea, service or product to compel action in
accordance with the interest of the advertiser” -ADVERTISING AGE
“Advertising is the presentation and promotion of the product, service or idea
where such presentation and promotion is identified with and paid for the sponsor.
-BLAKE
“Advertising message are identified with the Advertises either by signature or by
oral statement advertising is the commercial transaction involving payments to
publishers or broadcasters and others whose media are employed”
-Borden
“Any paid form of non personal communication of ideas , goods or services by
business firms identified in the advertising message intended to lead to a scale
immediately or eventually”
“ Advertising is causing to know , to remember, to do” -Wood
“Advertising is any paid form of non personnel presentation of ideas, goods or
services for the purchase of including people. -Weeler
3.3 Evolution and Criteria of Advertising
The history of advertising dates back to civilization itself. As much as some 3000
year back papyrus sheet were used in Thebes in Egypt to announce the rewards for the
return of runway slaves. In Egypt, criers were used to announce the arrival of trade ships.
Around 1500 B.C shopkeepers in Athens were advertising.
Largely in the form of signboards and hoardings. In ancient Greece town, criers
sold slaves and cattle, made public announcements and chanted advertising rhymes,
which must have sounded something s, like today s singing commercials.‟ ‟
Then with the rise of craft economy in Europe and Asia, advertising arrived with a
rapid pace on the business area. In fact, spoken words were the most predominant form of
advertising till 1450 A.D, the invention of movable type printing press by Johann

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Guestonoberg, revolutionized advertising and the first printed advertisement of prayer
book appeared in England in 1477. The first news paper advertisement gained momentum
with the introduction of England s first daily newspaper „London daily gourant in 1702.‟ ‟
The modern market system appeared in the scene, by the sixteenth century, and
this tempted the Europeans to expand business around the world. By early eighteenth and
mid eighteenth century, in North American colonies of England, many newspapers came
to be known as advertisers and carried large number of classified advertisements aimed at
small but affluent of readership.
In early nineteenth century printer and publishers of newspapers who used to sell
advertisements space to procure necessary finances for their survival and growth mostly
handled advertising. The concept of mass production and standardization of products by
industrialists contributed greatly towards not only in the emergence of consumer markets
during mid nineteenth century but also gave rise to modern marketing system.
Development of chromolithography, especially in Germany, enabled the use if
color picture, which rendered advertisement more eyes catching. In the early twentieth
century the appearance of consumer product advertisements with pictorial display has
given a new shift in advertising.
3.3.1 Criteria
Not every product lends to advertising, Prof Neil h Borden has identified five
criteria that serve as guides for management in deciding whether the company should use
advertising to increase the demand for the product. They are as follows:
The primary demand trend for the product should be favorable, and then only the
advertising works best. It cannot successfully sell a product that people do not
want, nor can it reverse demand trend.
There should be considerable opportunity to differentiate the product. When this
condition exists, it is easier to advertise because the company has something to
say. A trade association may still advertise products, which are not easy to
differentiate by brand.

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The product should have hidden qualities. If a product exhibits everything it has,
there is no necessity to advertise. Hence, it must possess certain hidden properties,
which could be advertised.
Powerful emotional buying motives should exist for the product, and then buying
action can be stimulated by appeal to these motives.
The company must have sufficient funds to support an advertisement program
adequately.
3.4 Main Steps in Building Advertisements
There are ten steps that are more or less fundamental. Those are:
Get the facts.
Statement of purpose
Assemble ad materials.
Organize ad materials.
Word or phrase the key idea.
Visualize the elements and sequence.
Write the first draft.
Pre-check the ad
Revise and refine.
Measure effects and learn.
It is a logical order. It should be followed as closely as the organizational and
planning situation allows.
3.5 Advertising Copy
The term „copy covers all items appearing in an advertisement .the main purpose‟
of an advertising copy is to constitute AIDA formula (attention, interest, desire and
action). The advertising copy has 2 main parts i.e. ., advertising theme or appeal and
advertising layout.
Advertising theme of appeal: it represent a specific point of view or an idea to
be stressed in the advertisement which aims at a basic buying motive, attract
the right group of prospects, and to tie in logically with the product and its
qualities and be capable of being used in multiple media.

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Advertising Layout: Advertising layout deals with proper and attractive
physical arrangement for the best presentation of the message or sales
communication. Advertising layout has the following elements.
a) Headline: headline put froths the main theme or appeal in a few words.
It should be clear, simple, short and attractive to hold attention of the
prospect.
b) Illustration: it s a vital demonstration consisting of drawings, cartoons,‟
pictures, photographs, for attracting attention, creating interest and
arousing desire.
c) Color: Color attracts great attention- attraction power and judicious
blending of which can evoke emotional reaction. Red ,green, blue and
black are the most popular colors used in advertisement
d) Text: Is the advertising massages, which explains and develops the
ideas presented in the headlines.
3.6 Copy Testing
It is necessary to measure the effect of communication in many ways such as, it is
said to be copy testing. Copy testing can be done before or after an ad is printed or
broadcasted. That is, it may be:
a) Presenting
b) Possessing
3.6.1 Presenting: They are 3 major type of presenting.
Direct rating- where the advertiser exposes panel to alternatives
advertisements and asks them to rate the advertisements.
Portfolio tests- where consumers view or listen to a portfolio of advertisement
and is asked to recall all the ads and their contents. Their recall level indicates
the ability of advertising.
Laboratory tests- where equipments are used to measure consumer s‟
physiological reactions towards an ad though which attitudes intentions of
beliefs of a consumer are revealed?
3.6.2 Post testing: The 2 popular methods of post-testing are stated below.

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Recall tests – were an advertiser asks people to recall everything they can
remember the advertiser and products from the television programs or
magazines. Recall scores indicates the ad s power to be noticed and retained.‟
Recognition tests- where recognition scores can be used to assess advertising
impact in different segment and to compare the company s ad with‟
competitor s advertising.‟
3.7 Functions and Objectives of Advertising
We may group the various function of advertisement in two:
1. Primary functions
2. Secondary functions
3.7.1 Primary functions: Primary functions of advertisements are as follows
To increase sales of the product by securing greater consumption attracting new
buyers or introducing new uses for a commodity.
Persuasion of dealers to stock the goods is one of the functions of advertisements.
It helps the dealers (wholesalers and retailers) to sell the products.
Advertising is effectively used to increase the per capita use of the commodity by
its constant repetition.
The receptiveness of a new product or a new model increases if producer as
earned a name as a producer of good quality products. Advertising does this
3.7.2 Secondary functions:
Such function includes the following:
Adverting encourages the salesmen and lens them moral support in facing a
difficult customer.
Necessary information is furnished to salesman, dealers and customer about the
product. The printed word is manufacturer s guarantee.‟
It creates a feeling among the executives and administrative staff that they are
working in a company having public response.

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The worker of the company of a well advertises goods feel themselves secured. It
means steady work and consequent prosperity. There is a feeling in the minds of
workers that their jobs are permanent and are likely to be promoted.
It helps the company to secure better employees, executives, salesmen and
workers
3.8 Objectives
The purpose of advertising is nothing but so sell- a product, a service or an ideal
the real objectives of advertising is effective communication between producers and
consumers. The following are the main objectives of advertisings
3.8.1 Preparing ground for new product:
Advertisement may be used for introducing a new product in the market. New
product needs introduces because potential customers have never used such product
earlier and the advertisement prepares a ground for the new product. Most of the
advertisement in cinema s –halls or at radio and television serve this purpose.‟
3.8.2 Creation of demand:
The main objective of the advertisements is to create a favorable climate for
maintaining or improving sales mainly in growth and maturity stages of product life
cycles. Customers are to be commonly reminded about the product and the brand. It may
induce new customers to buy the product by informing them its qualities since it
impossible that some of the customer may change their brands. Thus in other words,
advertisement may bring new areas and customer to the company s product thereby‟
increasing the company s share in the total market.‟
3.8.3 Facing the competition:
Another important objective of the advertisement is to face the competition. In
other words advertising in modern days is undertaken not only to inform about a product,
but is used also to maintain and increase the demands of the product by wearing people
away from rival products in the market. Under competitive conditions advertisement help
to build up brand loyalty and when customers have developed brand loyalty, if becomes
difficult for the middlemen to change it.
3.8.4 Creating or enhancing goodwill:

Impact of Advertising on Customers in Tata Motors

Impact of Advertising on Customers in Tata Motors

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