Tata group has a combined worth of $232 trillion. It has grown at a rate of 47% since last year. It has been one of the oldest industrial groups in India.
It has a huge amount of success in its life span which is still growing.
Thus this makes us keen to know the marketing mix of Tata Group.
In this blog, we will see the marketing mix of Tata Group which will consist of the price, place, promotion, and product mix.
Before we start with its marketing mix let us know about Tata Groups as a company.
Tata Group- India’s only value-based corporation founded in the year 1868 by Jamsetji Tata. A global enterprise, headquartered in India, has 30 giant listed companies across ten verticles. Those companies operate independently under the leadership of their own board of directors.
The worldwide success of a company depends upon the ideation and execution especially if they are directed by core values. Integrity, Responsibility, Excellence, Pioneering and Unity are the core values Tata Group believes in.
It has a total of 750,000 employees and they are still growing. The growth of the Tata group has a direct impact on the growth of the Indian economy too. It has changed the face of India in the fields of automobiles and technological advancements.
Let us now start with the marketing mix of Tata.
Marketing Mix of Tata
Brand loyalty and Innovation in its products are what separates Tata from the other brands present in the market. But, cash is what strengthens the financials and motivates its community. This key responsibility is what marketing fulfills, turning its target audience into loyal customers.
For the marketing to be a success, it has to be planned to focus on multiple areas. The above explanation would make the Marketing Mix definition easy for you.
Marketing Mix is the set of foundation tools that companies follow to achieve their marketing objectives in the target market. Those tools are 4Ps. So, let’s have a deep insight into it.
Let us first see the product mix of Tata.
1. Product mix of Tata
Tata Group has 29 listed companies operating and growing in numerous sectors, under the principal investment holding company, Tata Sons. Freedom from this holding company has proved to be effective for the companies and has boosted innovation. The sectors in which Tata companies are involved are as follows:
- Tata Elxsi
- Tata Steel- Asia’s first integrated steel factory
- Tata Motors- Revenue of US$ 35 billion
- Jaguar Land Rover- Premium Cars manufacturing company acquired
- Tata Autocamp Systems
- Tata Chemicals
- Tata Consumer Products- Salt, Dal, Tea, etc
- Voltas- AC
- Titan- Jewellery, Watches and Eyewear
- Infiniti Retail- Consumer durables and electronics (Croma)
- Trent- Westside, Zudio, Star and Landmark
- Tata Power
- Tata Projects- Engineering, Procurement and Construction, etc.
- Tata Housing
- Tata Consulting Engineers- Design, Project management, etc
- Tata Realty and Infrastructure- Real Estate
- Tata Capital- Financial Services
- Tata AIA Life- Life Insurance
- Tata Asset Management- MFs, Portfolio Management, etc
- Tata AIG
Aerospace and Defence
- Tata Advanced Systems- Aerospace and Defence
Tourism and Travel
- Indian Hotels Company- Taj hotels
- Tata SIA Airlines- Vistara
- AirAsia India
Telecom and Media
- Tata Communications
- Tata Sky
- Tata Teleservices
Trading and Investments
- Tata International- Leather, Trading, etc
- Tata Industry- Incubation
- Tata Investment Corporation- Non-banking financial company
Let us now see the Price mix of Tata.
2. Price mix of Tata
Tata group has several subsidiaries and has a board of directors independent to make decisions for their own companies. But, there is a common underlying pricing policy that they adopt. They believe in charging prices for their products lower than that of the industry average penetrating the market.
Due to the inverse relationship of demand and price, they generate large revenue. Utilizing such funds they explore new products and markets. Also, they are smart enough to manufacture products and price them according to the need and affordability of the people present in that particular country, respectively.
Furthermore, they take into account economic factors, policies, scope, scale and capital in the sectors or industries they are doing business in.
Let us now see the Place mix of Tata.
3. Place and Distribution mix of Tata
The Tata group has spread its reach to 100 countries across 6 continents providing its innovative projects and taking India to greater heights. Its effective product and pricing strategies have gained market share for its products not only in India but also in the international markets.
In addition, strategic alliances, M&As with foreign companies have given it access to the global markets where it can manufacture its products and render services with ease.
Tata relies more on physical distribution channels to make it available to its customers directly and instantly at its stores. But to cope up with e-commerce giants, it has a web presence as well where its customers can order the products online. Tata CLIQ is the company that serves this purpose. Croma, playing in the electronics and consumer durables industry also has an online presence for the consumer’s convenience.
Lastly, let us see the Promotion mix of Tata.
4. Promotional mix of Tata
For Product, Place and Price strategies to come into fruition, promotion is a must. Tata follows unique promotion techniques for its products to attract its target audience:
It hires actors as brand ambassadors to promote its product. This enhances the standard of the product and raises brand loyalty. This is a great way to promote luxury and consumer products.
Next is the advertisement for the TVs. FMCG products such as tea, coffee, salt, etc are promoted on the TVs. This raises the awareness in the housewives and hence increases sales.
Print Media is also useful when it comes to electronics products, telecom and media, tourism and travel services.
CSR activities that Tata carries can be considered as promotions as it connects the people in large with the companies. 66% of Tata Sons is held by Tata Trusts. All the dividends flow into philanthropic work.
It can be understood from the above information that how the marketing mix has proven vital for such a conglomerate to grow.
In its product mix, we have seen that tata group acquires different subsidiary companies which help in the diversification of products some of which are in the field of steel, automobile, infrastructure, etc.
They price their products lower than that of the market competitors in most of their companies in the market. This help in making more profit due to the inverse relation of price and demand.
It has a wide reach in the international market having its branches in 100 countries over the world. It relies more on the physical channel of distribution to provide its products to its customers.
It hires celebrities to promote its products in the market. They use different modes like television, print media, and social media to promote their products.
Also, this should be in mind that this is not the sure short method. There are times when these fail. It is for giants like Tata also.
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