Have you ever wondered how the Tata Group managed to amass such a massive empire and brand value? This is case study will delve into the details of the business model of TATA – one of India’s most prominent corporate houses.
We will discuss how the Tata group employs numerous business tactics and has perfected its operating principles, allowing them to reach new heights in the economy. We will explore topics such as the marketing mix, segmentation, target audience and much more.
Before we start exploring the business model of TATA in detail, let us start by learning a bit more about the group.
About Tata
Jamshedji Tata founded the Tata Group in 1868, making it India’s largest and most trusted global conglomerate. It is one of India’s most powerful industrial conglomerates. It operates in more than 80 countries on six continents. Its businesses export goods and services to more than 120 countries.
The company’s headquarters are in Mumbai, Maharashtra, and it has 114 firms and subsidiaries in eight business sectors, with 27 of them being publicly traded. Tata Group is owned by a charitable trust, which owns about 66 per cent of the company.
JRD Tata claims that his business philosophies are uncomplicated. He considers the owners’ interests, as well as the health and welfare of the employees, for their basis to be strong.
The business model of a corporation lays out its business plans and strategies, making it crucial to comprehending its primary business activities. Let’s take a look at the Tata Group’s numerous business strategies.
Now that we understand the origin and background of the company – let us start exploring the business model of Tata.
Business Model of Tata
Tata is a massive conglomerate, as we learned earlier, and hence they do not have one particular business model they stick to. Rather the company depends on employing multiple tactics and strategies for their different wings and brands in order to maximise their reach and diversify strongly in each market accordingly.
There are multiple aspects to a business model, and hence we shall start exploring more about the business model of Tata by first looking at their customer segmentation.
Business Model of Tata – Customer Segmentation
Tata, as a worldwide conglomerate, caters to a wide range of customer segments through its numerous business divisions and organizations. Over 150 countries benefit from the Tata Group’s services.
Due to its massive size and diversified business ventures, Tata caters to both – retail customers, governmental clients and other corporations. Through financial services and its dedicated consumer retail segment, the Tata Group delivers precisely to consumers. It also caters to a wide range of industrial and corporate clients, including those in the automotive, shipbuilding, engineering, and agriculture sectors.
Tata Consultancy Services is one of Tata Group’s most profitable businesses. TCS provides services to well-known organizations such as Sony, Microsoft, Cisco, British Airways, etc. as well as government bodies.
Now that we have understood the customer segment of Tata. Let’s move on to the value proposition of the Tata company.
Business Model of Tata – Value Proposition
Tata Group is one of the largest and most diverse business conglomerates on the planet. The brand is represented by the quality and dependability of its products and services because the group offers both consumer and business goods and services. The value proposition of Tata changes with each of it’s brands as their target audience changes respectively.
For example – Tanishq is a premium jewellery brand that offers high-quality designer products, whereas Tata Motors is more in line with masse needs for personal vehicles and creates more economically sound products.
A wide range of products is supplied through various channels and made available in both the physical and online markets. So let us now take a peek into the channels managed by Tata.
Business Model of Tata – Distribution Channels
Tata Group is one of the oldest business concerns existing till date and has been operating through multiple business channels and across multiple business sectors for many years.
The following are the products that the Tata company offers directly to its customers:
- a chain of retail stores.
- Third-party and property e-commerce platforms, as well as via authorized resellers.
- Tata Group also sells its products and services directly to industrial and corporate clients through its various sales teams.
This discusses the Tata company’s channels. The key resources of Tata are detailly discussed below.
Business Model of Tata – Key Resources
Tata Groups’ key resources are as follows:
- Logistics and distribution services
- Infrastructure for information technology
- Supply chains and retail
- Massive Talent Pool
The cost structure plays a vital role in Tata company. Now let’s tear it down and understand the cost structure of Tata.
Business Model of Tata – Cost Structure
The Tata Group’s cost structure is about the operation of its manufacturing facilities. This includes
- supply chain management.
- The logistics operation
- Chains of distribution and warehousing
- Upkeep of its IT infrastructure
- Data centers and servers
- Partnership administration
As we have learned the different aspects of the business model of Tata, let us learn about how all these elements come together by understanding the marketing mix of Tata.
Marketing Mix of Tata
The 4ps of the marketing mix are evaluated in the Tata Group’s marketing strategy. Product, Price, Location, and Promotion, to name a few. Certain marketing strategies include product innovation, pricing strategy, promotion planning, and so on. Based on the Tata Group marketing mix, these business strategies help the brand succeed.
The company’s marketing strategy aids in positioning its brand above and above its competitors, resulting in the achievement of its business goals and objectives.
Let’s take a closer look at the Tata Group’s Marketing Mix to discover more about its product, price, location, and distribution strategies.
Product Strategy of Tata
The Tata Group is one of India’s most powerful conglomerates. It operates in a variety of industries and has businesses all over the world in its marketing mix. The Tata group places a premium on product quality, dependability, and efficiency, and is constantly seeking new methods to improve its product line.
Pricing Strategy of Tata
The pricing approach of the Tata Group is unique across the board because each member of the tata group acts independently and is not reliant on anyone.
Each company is distinct and unaffiliated from the others. However, each company’s price strategy and the marketing mix are unique, as each is dealing with different difficulties such as capital scale, economic variables, and so on. As a result, the Tata group maintains a single pricing policy for its various businesses.
Place Strategy of Tata
The Tata Group has operations in more than 80 countries on six continents. It has a variety of ventures and projects that may be accessed via digital platforms. Since 1868, it has always been open to revolution while also being environmentally and socially conscious.
Promotion Strategy of Tata
The Tata Group employs a variety of promotional and advertising tactics across all of its businesses, which is possible because the group has a variety of resources to promote its products at various levels. The Tata Group advertises via appointing celebrities or brand ambassadors, as well as any advertising agency. Printing media is also frequently utilized.
A small trading corporation that has grown into a global giant with branches in every industry – The Tata Group’s diverse brand portfolio enables them to effectively compete. It also makes it easier for businesses to break into new markets.
Conclusion
Tata Group is India’s largest automaker and one of the world’s top ten multinational conglomerates. Tata is the world’s 50th most valuable brand. The company’s business model is based on the principles of the founding father of the company, i.e., integrity, unity, and responsibility. The excellent business model of Tata also makes it the first choice of candidates across the world to want to work for them.
The Tata Group’s business strategies are based on deep consumer behaviour insights and the product selections are based on their likes and dislikes. It employs over 4,24,365 people across India and is thus the country’s largest private employer.
One aspect where the Tata group is still coming to speed is digital marketing, where the majority of their customers have now migrated to. If you wish to be relevant as well and learn more about how marketing operates in the 21st century, head on over to the Free Digital Marketing MasterClasses by the CEO and Founder of IIDE, Karan Shah.
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