Competition is hitting up in the sports utility vehicle segment (SUV) in India once again.

Even
as Mahindra & Mahindra Ltd is in the process of rolling out an integrated marketing plan to
announce the prelaunch of Scorpio, Tata Motors is drawing up an aggressive marketing
strategy to popularize its recently-launched petrol variant of Tata Safari.

For starters, Mahindra & Mahindra Ltd has launched a multi-media ad campaign to promote
the new avatar of Scorpio. Created by Interface Communications, the mass media campaign
includes a series of press advertisements and a television commercial. As for the rationale
behind the prelaunch of Scorpio, says Mahindra & Mahindra Ltd executive vice-president
(marketing & sales) Rajesh Jejurikar: “After conducting an extensive market research (with
AC Nielson), we upgraded our existing model with new features. However, the positioning of
the brand will remain the same so the adline will continue to be the same—‘Nothing Else Will
Do.’”
The company plans to focus on press ads to highlight the new features and improved fuel
efficiency of the upgraded version of Scorpio. “To support mass media advertising, we’ll be
hosting roadshows and ground promos. Till now we have sold over 20,000 Scorpios since we
launched this brand. With this improved version, we will phase out the old brand,” hisadds. In
addition, Mahindra & Mahindra has recently launched a nationwide talent search programmed
titled ‘Scorpio Speedster with Timex’ in 10 cities across the country. Through this initiative,
the company plans to strengthen Scorpio’s brand positioning of being a youthful and sporty
SUV, says MrJejurikar.Tata Motors is gearing up to launch a new multi-media ad campaign to
announce the new variant of Tata Safari, the petrol version. On Tata Motors new marketing
strategy, says Ogilvy & Mather India clients service director SharmilaMalekar: “To announce
the launch of Tata Safari (petrol variant), we will be launching a multi-media ad campaign
within a month. The new campaign will include, press ads, TVCs and radio advertising. There
will be a new adline too.”
At present, the baseline for Tata Safari is ‘Make Your Own Roads’. In addition to mass media
advertising, the agency will continue to focus on its CRM initiatives such as the Tata Safari
Explorer Club to promote the new avatar of Tata Safari.
In the Indian automobile industry, SUVs today account for only 15 per cent of the total market
unlike western countries where it is almost 80 per cent
1.1.2 WHAT IS MARKETING STRATEGY
Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contributes to
the goals of the company and its marketing objectives.

1.1.3 TYPES OF STRATEGIES

Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief
description of the most common categorizing schemes is presented below:

 Strategies Based On Market Dominance

In this scheme, firms are classified based on their market share or dominance of an industry.

 Porter generic strategies

Strategy on dimensions on strategic scope and strategic strength. Strategic scope refers to the
market penetration while strategic strength refers to the firm’s sustainable competitive
advantage. The generic strategy framework comprises two alternative scopes. These are-
Differentiation and low-cost leadership each with a dimension of focus-broad or narrow

 Innovative Strategy

This deals with the firm’s rate of the new product development and business model innovation.
It asks whether the company is on cutting edge of technology and business innovation.

1.2 AN OVERVIEW OF INDIAN CAR INDUSTRY

Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the
Indian car industry has demonstrated a phenomenal growth to this day. Today, the Indian car
industry presents a galaxy of varieties and models meeting all possible expectations and
globally established industry standards. Some of the leading names echoing in the Indian car
industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero
Honda and Toyota Motors etc.

During the early stages of its development, Indian car industry heavily depended on foreign
technologies. However, over the years, the manufacturers in India have started using their own
technology evolved in the native soil. The thriving market place in the country has attracted a
number of car manufacturers including some of the reputed global leaders to set their foot in
the soil looking forward to enhance their profile and prospects to new heights.

In 1940s the Indian automotive industry was at a very low stage. An embryonic automotive
industryemerges in India. In the initial years after independence Indian automobile industry
was plagued by unfavorable government policies. All it had to offer in the passenger car
segment was a 1940s Morris model called the Ambassador. In 1953, government of India and
private sector came together to build an automotive component manufacturing industry to meet
the rising needs of the automobile industry.

Ford and General Motors, sensing the potential, set up local companies that year to sell and
service their motor cars and trucks. In 1928, General Motors India Ltd commenced assembling
trucks and cars in its factory in Bombay, the first car assembled in India rolling off the assembly
line on December 4th. Two years later, Ford Motor Co of India Ltd commenced assembly of
automobiles in Madras, and the next year in Bombay and Calcutta. And in 1936, Addison &
Co Ltd commenced assembly of cars and trucks in Madras.

Hindustan Motors Ltd, Calcutta, and Premier Automobiles Ltd, Bombay, were established in
1942 and 1944 respectively to progressively manufacture complete automobiles. Hindustan
Motors, a Birla group company, began manufacturing operations in 1948 by assembling Morris
Oxford cars and Bedford trucks, gradually indigenizing the components. In 1957, the Morris
Oxford, substantially indigenized, was re-introduced as the Hindustan Ambassador.

The car sector of India is the seventh largest in the world. The country is the largest
manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry
experts have visualized an unbelievably huge increase in these figures over the immediate
future. In the year 2009, India rose to be the fourth largest exporter of cars following Japan,
South Korea and Thailand.

1.3 COMPANY’S PROFILE

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The
company was established in 1950 as a locomotive manufacturing unit and later expanded its
operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-
Benz AG of Germany. Despite the success of its commercial vehicles, Tata realized his
company had to diversify and he began to look at other products. Based on consumer demand,
he decided that building a small car would be the most practical new venture. So in 1998 it
launched Tata Indica, India's first fully indigenous passenger car. Designed to be inexpensive
and simple to build and maintain, the Indica became a hit in the Indian market. It was also
exported to Europe, especially the UK and Italy. After years of dominating the commercial
vehicle market in India, Tata Motors entered the passenger vehicle market in 1991 by launching
the Tata Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata
Estate (1992, a station wagon design based on the earlier 'Tata Mobile' (1989), a light
commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility
vehicle). Tata launched the Indica in 1998, the first fully indigenous passenger car of India.
Though the car was initially panned by auto-analysts, the car's excellent fuel economy,
powerful engine and aggressive marketing strategy made it one of the best selling cars in the
history of the Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-favorite. Tata Motors
also successfully exported large quantities of the car to South Africa. The success of Indica in
many ways marked the rise of Tata Motors.

Production
Although the sector was hit by economic slowdown, overall production (passenger
vehicles,commercial vehicles, two wheelers and three wheelers) increased from 10.85 million
vehicles in2007-08 to 11.17 million vehicles in 2008-09. Passenger vehicles increased
marginally from 1.77million to 1.83 million while two-wheelers increased from 8.02 million
to 8.41 million.In recent times, India has emerged as one of the favorite investment destinations
for automotivemanufacturers.

•Volvo Buses India is eyeing 35 per cent growth in domestic sales this year at 550-600 unitsas
against around 440 units sold in 2008.

•Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of Japan’s Toyota
Motor Corp, is increasing its investment by US$ 164.8 million at its manufacturing site
near Bangalore, to touch US$ 824.32 million by 2016.

•French carmaker, Renault, has completely recast its plans for India as part of a new,aggressive
approach that will see it producing cars in its Chennai plant by 2011.

•Hyundai has made India its global hub for manufacturing small cars. It will invest US$
1 billion in its second plant in Chennai by 2013. In addition, it is also investing US$ 40
millionin its research and development (R&D) facility in Hyderabad.

•General Motors has so far invested about US$ 1 billion into its Indian operations.

•Mercedes-Benz will invest about US$ 64. 21 million in its plant at Chakan near Pune.

Domestic Market
 Sales of cars and commercial vehicles have been impacted due to global economic
slowdown.However, in spite of that there has been a marginal increase in the number of
vehicles sold in 2008-09 as compared to 2007-08. Total number of vehicles sold including
passenger vehicles, commercialvehicles, two-wheelers and three-wheelers in 2008-09 was
9.72 million as compared to 9.65 millionin 2007-08. According to an Ernst &Young analysis,
passenger vehicle sales in the country willgrow at a C