Background And SUMMARY OF Tata Group

Tata Company was founded by Jamsetji Nusserwanji Tata in 1868. First he began trading company which deals with Opium in Mumbai. Then in 1877, he started out Express mill a textile industry in Nagpur, it was the major industrial job of the Tata group. Jamsetji in 1903 opened up a Taj Mahal Hotel in Bombay. After his loss of life in 1904, his eldest boy Sir Dorab Tata experienced end up being the chairman of the Tata Group. In his period, he began group venture of steel development in 1905 and hydroelectric vitality technology in 1910. In 1934, Nowroji Saklatwala became the head of Tata group due to the death of Dorab Tata. He was called JRD Tata. Under his management the group regularly broadened new spheres of businesses. There industries were Tata Chemicals[1939], Tata Motors and Tata Market sectors[1945], Voltas[1954], Tata Tea[1963], Tata Consultancy Services [1968] and Titan Market sectors[1984]. In 1991, Ratan Tata got become the chairman of Tata Group. He is running the business very efficiently till today.

Code of Ethics of the company: "Authority with Trust"

Business Industries:

Tata group has the business in a variety of areas such as:

Communication and Technology





Consumer Products


In this article, we are going to see, how the macro environment has inspired the marketing decision making of TATA Group going back a year?

Marketing Environment:

It is the environment where all the causes and works within or outside the company which influences the marketing decision of the company. It really is Micro or Internal Environment and Macro or External Environment. [Armstrong and Kotler 1999]

Macro Environment:

It is the external factors which impacts the actions of the business from outside. In addition, it affects the business's marketing decisions, goals and performance.

External Factors:


Any business which is began should comply with the rules and regulations integrated by government. The federal government develop varies plan to safeguard culture all together. Every marketing activity are handled by laws and regulations. There are plenty of legal areas of concern to marketers, ranging from data coverage and pricing statements, comparative advertising, marketing of poor food and advertising to children. In lots of countries, governments have passed strong consumerism legislation. The government implemented many guidelines covering the areas such as competitive habit, good insurance policy in trade, guarding the environment, preserving the standard of products, liability of the merchandise and commercial business transactions.

Tata group is following all government regulations in everything areas of businesses:

The company is documented under Company's Function. As it is a stated company it is complied with the laws and regulations of "SEBI [Stock Exchange Plank Of India]". Tata Communication is also following rules and regulations of TRAI [Telecom Regulatory Expert Of India], which is the primary rule implemented to safeguard and provide quality telecom service to all customers. The company is also following the guidelines of DoT [Division of Telecommunication]. Tata Capital is performing based on the laws and regulations of RBI [Reserve Loan company of India] and Tata Insurance is under the guidelines of IRDA [Insurance Regulatory and Development Expert]. These rules and regulations are changing yearly and the business has to follow every single rules implemented by the government.

Recently, DoT has changed the guidelines on purchases of telecom equipment from manufacturers outside the India, dated 3rd December 2009, which afflicted the activities of all telecom providers.

Tata telecommunication is one of the big telecom companies in India, as it has collaboration across the world, as it is purchasing the telecom equipments from various countries around the world.

It has encountered the issue in fulfilling the customer orders and broadening the new infrastructure around India, because of lack in equipment source for expansion. Moreover it also impacts the income of the business for the financial period 2009-2010.


An ethics is the certain standard which is practiced and used by the organization to run the business effectively. Ethics are of three types i] Code of Carry out [employee's ethics] ii] Code of Ethics [corporate and business or group ethics] iii] Code of practice [professional ethics]

Tata group is following 5 cores of worth and 25 code of practice in its business. Tata group always relay on principles. They thought that their beliefs led their business successful. Their central of values is

Integrity: THE BUSINESS runs the business enterprise legally, seriously & transparency. Every activity must stand the public interest.

Responsibilities: The Company must be dependable to the nation, society and surroundings it works. It always means that "what originates from the general public must get back to the general public".

Understanding: The Company should be helpful and mankind to all people, show value to the public, employees and countries.

Unity: The Company must work united using its employees, customers and partners across the world, build mutual relationship by concentrating tolerance, mutual co-operation and understanding.

Excellence: The Company must work in order to bring high standard of quality in its product. It should improve the standard in day to day work.

Code of practice: Every employee should follow each code of practice during the period of employment with Tata, failure to follow the codes leads to termination of job.

Tata Group totally believes on their core of principles and code of practice, which leads the business very successful on the market till today. Ethical factor really helps to improve the standard of work, quality in the merchandise produced, common understanding among the company and customer, job satisfaction within the employees, goodwill etc.

Political Factor:

It is also one of the factors of macro environment, which influences the actions of business. It means the political get-togethers which influence on the activities of big corporation in order to get support from the traders or getting ultimately more shares from the project.

Tata group is also inspired by two major politics get-togethers such as Congress and BJP in India. These two parties received greatest share contribution from Tata Group between 2003 and 2007. The Congress got received the most significant stocks around $ 860, 000. On the other hand, BJP also received more than $540, 000 from Tata.

Due to the political support, Ratan Tata happened the position has chair of Investment Fee in 2004 after the Federal framed under Congress Party. He was appointed for the reason that position in order to attract Foreign Direct Investment to India.

Tata motors presented Nano car during election period inorder to support Narendra Modi [Gujarat Key Minister], who helped them to solve land problems for the automobile project.

Thus the politics parties have great deal of impact in your choice making of Tata group. Like, launch of new tasks, locations and correcting of price.

Economic Factor:

It is the factor that affects the buyer buying ability and patterns. Economic factor predicts the business's economic status, profit and reduction and development of the organization. Recently, Tata possessed faced troubles in Bombay, Indian financial center was unexpectable. Tata Motors experienced struggled to improve funds in the administrative centre market, more than thousands employees face lay-offs, factories are being shut down, finished temporarily, top executives are considering taking pay cuts. On the other hand, Tata Consultancy Service had shown good level of expansion doubled with improved efficiencies helped them to show great results in economic progress.

Therefore, Tata organizations got shown good monetary development in its Telecommunication and Technology areas in comparison to Tata Motors in the current year. Although advantages of Nano car increased the sale rate but due to fire accidents, the deal of the car was reduced it also influences the economic condition of Tata motors now it is increasing upwards eventually.

Technological Factor:

Like the other factor, technology and technical change may be both the cause and effect of environmental change. Technology change is also has the effect in development orientation, R&D and marketing orientation.

The objective of Tata Technology Corporate communal Responsibility program is "To make positive effect on the communities where the company does business through its support of go for programs efforts and initiatives that enhances and improve the standard of living".

The goal of Tata group is "Serving better for entire world, better for people, better for business, better for the present time and better for future".

Due to the improvement in technology, Tata group has developed many products and service to develop the typical of life. Tata is one of the primary organizations focusing more technical development in India. Tata Elexsi Ltd has effect on Engineering services, IT support, Aerospace, Product design service, System integration services and Visual computing labs.

"Technology and creativity" are binding with each other in Tata Motors, to structure vehicles that satisfied the thirst of Indian. Tata group is innovator for auto industry in India. The Tata motors are dotted with ground breaking ideas, that ideas help the study and development team to add new type of vehicles in vehicle industry. In 1966, Tata group possessed established Engineering research Centre, which played a essential position in the development of new product and improvement of existing product. Today 2000 engineers and scientists will work together for the introduction of services in Tata motors.


In 1998-India's first indigenous car presented by Tata-It was less costly, cope with international specifications in conditions of distance coverage, safe practices factors & drive quality etc.

Following the time, the motor industry acquired developed the Indica system by adding new models like V2, X2 and the new Vista series was unveiled in 2008. Each model has different in look, performance and features supplying their riders top notch generating experience. Tata Nano is one of the greatest inventions of Tata Motors because of the advanced technology, with low emission, low priced car with all safeness or comfort or certainty. It becomes a greater challenge to all or any competitors.

The new model "Indica EV, the electric Version" will be the Tata Motors next goal to achieve the market in advertising. This car will create awareness for global energy problems. It really is created by "European Techie Centre, a subsidiary of Tata Motors". This new EV series will appeal to more potential buyers from European countries this year. This EV car will have four car seats and wide area for baggage, mileage up to 200km and accelerate range 0-60kmph in 10 secs.

Future Ideas of Tata Group:

Based on the analysis of macro environment, it is evidently seen that Tata Motors are going to introduce new models of autos like New Mercedez Benz in October 2010, small cars between Nano and Indica Vista, Mahindra Scorpio with new construction model.

The financial condition of the company will be increased, it creates more demand for the Tata Product in worldwide.

Tata Group is going to start home based business sectors round the world.

To give attention to Cost command strategy.


Marketing Combine:

Marketing mix is the procedure of planning, making, and organizing various elements into the business to be able to attain the marketing goals available. The marketing mix is dependant on 4 P's in the marketing practices. To be able to achieve the mark market, the business should concentrate on the factors such as i] Price ii] Place iii] Special offers and iv] Product. [Mc Carthy, EF 1978]

Target Market Product Place

Price Promotions

While launching the merchandise into the market, the company must create a successful mixture of:

The right product

Sold at the right price

In the right place

Using the best option promotion [David Needham & Robert Dransfield 1996]

Based on the marketing mixture, Tata group is pursuing 4 'P' strategies in its all areas to achieve target market.

Product: "THE MERCHANDISE has to have the right features, it will look good and work very well". It might be thing or services offered to the customer. In turn, the customer will pay to the marketer. The merchandise should fulfill the needs and wishes of the client. Tata group has lot of products, each product as differentiation in its quality, service etc.

Tata Group has various products and services in every industries of businesses:

Agriculture -Agricultural Tools, Agrochemicals, Resource Centres

Appliances - Air-Conditioners, Drinking water Coolers, Water Purifiers, Water dispensers

Automobiles - Automotive components, Commercial Vehicles, Traveler Cars

Beverages-Coffee, Tea, Water


Charter Flights-Air services

DHT Television-Satellite television

Financial Services--Mutual money, Credit Cards, MORTGAGE LOANS, Insurance, Other services

Food-Food Additives, Spices

Holiday homes--Vacations

Hotels-Ginger, Taj Group

Housing-Residential and Enclosure Buildings

Jewellery-Gold, Platinum and Gemstone Jewellery

Leather-Finished Leather Goods

Retail-Croma, Landmark, StarBazaar, Westside

Solar Appliances-Solar products and systems

Telecommunications-Telecommunications, Telephony

Watches and Clocks-Wristwatches

Price: The price must be right and realistic to the merchandise and services offered by the organization. Prices is the essential aspect in order to advertise the product to the buyer. Based on the price only, the demand of the product increase or decrease. It only makes a decision the life span of the product in market. If the purchase price is high but the quality and quantity is low, then the product life comes to end in the marketplace.

Tata Communities are focusing more pricing factor. They will be the person who offered India's first cheapest car Indica in 1998 and Nano Car in 2009 2009. Usually, People have trust in Tata Group, there will be the person who provide product and service at affordable rates. Tata steels are extremely cheap and with good quality in comparison with all the steels on the market. Tata telecommunications are also offering suprisingly low tariff rate, low priced mobile phones etc. Tata home appliances such as Voltas air-conditioner, Freezer, Torso coolers, Little Coolers and Drinking water Coolers and Dispensers are saturated in cost however in good operating provided by them

Promotions: It is the activity which included increasing the deal of the merchandise in the market. There are many of promotional activities such as I] Ad II] Telecalling III] Pamphlets, Notices, Brochures IV] Promoting TV programmes V] Public relations VI] Personal Offering.

Advertisement: It is the one of the major promotional activity of the Tata Group. They believe advertisement is the only way to reach the clients easily. Advertisement is used to market the Tata Steels, Tata Consumer Products, Tata Devices, Tata Hotels and Tata Motors.

Promotional Services: Tata telecommunication is offering many promotional services to its customers. They will be the person who provided accessories with interconnection for both mobiles and landlines. They offer very low tariff rates for both local and nationwide calls. They also provide customers free Text message service for local Text message. They also introduced many Value Added Services. Using Tata mobiles, people can access internet free of charge of cost. DTH television is created by Tata in India first. These services can be found in low rate, cellular with all local and countrywide channels.

Public Relations: Tata Motors are planning public relations camp in every areas of city during weekends. These meetings help the buyer to understand the features of the product

through the dialogue with professionals, engineers and customer marriage officers.

Place: Place is another important strategy that needs to be considered while making the marketing decision of the company. The product should be presented in the place, where there is more demand for this. After the product comes at finishing stage, the business should decide where the product should be unveiled? How it should be come to the consumers?

The two main factors should be considered I] Function of syndication II] Physical Syndication.


Tata Motors possess the distribution in globally. Tata automobiles have significantly more demand in

Worldwide because of new technology, impressive ideas, price, models and styles etc.

Tata group has extended their business in all areas around the country. There is no differentiation as rural and cities. Tata Telecommunication is jogging in all rural areas in India. The network coverage area is very huge that attracts more mobile customers to them. Tata retail services are positioned in the heart of each city in India. Landmark stores in Chennai, Bangalore, Mumbai and Delhi are found in Spencer Plaza and City Middle which allures more young individuals to collect Audio tracks/Video Cd's, Literature, Stationary, Chocolates, Beverages etc in one place.

Competitive Advantages:

According to Michael E Porter [1990], Competitive benefit is one of the factors that decide the economic development of the company. Competitive gain has focused on three factors:

Tata Group is targeted on these three competitive strategies in its business areas.

I] Predicated on Cost Leadership: When the product and services are offered at very low cost to be able to accomplish more customers on the market. Though there are more competitors on the market but credited to cost differentiation people preferred some company products which are available at cheap rate. Markets in cost command are achieved not because of cost but also by the quality and quantity of the product when compared with competitors. Once the same service provided by more companies but people will choose the service, which is available at affordable price.

Tata motors are following a Cost Leadership ways of achieve target market. Tata engine was the first automobile industry to create India's first indigenous car Indica at affordable price. It created the boom in car industry in 1998. The success of the Indica contributes to the benefits of new model cars like Indica V2, Indigo, Sumo and heavy vehicles such as Tata Ace.

Recently, Tata has released Tata Nano car for Rs. 1 Lakhs, which end up being the world's cheapest car with low emission, spacious and safety precautions. This launch made the Tata Electric motor to attain the market again.

II] Based on Focus: When the merchandise and services are presented by focusing this people or targeted market. Then, the company is increasing competitive advantage in the concentrate sector. It is not strategy employed by all business industries. Mainly the business which is very well in its economical status is going with this strategy. But the concentrate will change based on the marketing situations.

Tata group has released many products in order to appeal to all the clients. Especially Taj Hotel is one of the biggest luxury hotels in Mumbai which attracts more rich individuals in the country. The facilities and services proposed by this hotel made more customers to them. Even foreigners are receiving captivated by this hotel. The emphasis of this kind of hotels is to appeal to more rich individuals, businessman, and high representatives.

Even the Tata motor has launched many luxuries car such as Jaguar, Land Rover, BMW Z4 Roadster and Mercedes in order to get more rich customers, stylish young people etc.

III] Based on Differentiation: When the product has differentiation in its elements, taste, flavor and benefits in comparison to its competitors. Then your firm is concentrating on differentiation advantages in its competitive strategy.

Tata group has lot of products, each product as differentiation in its quality, service etc. Especially, when we look on the consumer products Tata tea which differs from all the tea products on the market. The preference of the tea differs which draws in more consumers in world wide. Tata Tea Carrier is selling around the world.

Benefits of consuming Tata Tea:

It offers refreshment and energy

It reduces the chance of heart disease, strokes and cancer tumor.

Thus, the Tata Group has pursuing the different strategy in marketing combination, in order to gain competitive advantages.


Today the company is becoming India's largest and oldest industry. At the moment the group operates ninety six businesses in six continents across the world. In 2010 2010, they have hired more than 363, 039 employees. The full total revenue for the year July 2010 is 78. 42 billion.

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