Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Advertising and Personal Selling

Download as pdf or txt
Download as pdf or txt
You are on page 1of 20

SUBMITTED BY: SUBMITTED TO:

NAME: STUTI SHARMA MR SHAHID ALI


COURSE: B.COM HONS.
ROLL NO: BCH21305
SECTION: C
ASSIGNMENT TITLE
GENERAL OUTLINE OF THE PROJECT
1. Introduction
Key points about Tata Motors and its industry
Significance of studying company’s advertising techniques
2. Background
Historical Overview of Tata Motors
3. Current Position of Tata Motors
Annual report 2022-23 analysis
Techniques and Methods of Advertising used by Tata Motors
Successful Advertising and Marketing Campaigns
Patterns of Advertising used by Tata Motors
4. Key Findings And Suggestions
5. References
INTRODUCTION
 Tata Motors Ltd. is one of India's largest and most prominent automotive
manufacturers, and it's a subsidiary of Tata Group, one of India's oldest and largest
conglomerates. Tata Motors is headquartered in Mumbai, Maharashtra, India, and
has a significant global presence. Established in 1945, the company has a rich
history of producing a wide range of vehicles, from passenger cars and commercial
vehicles to trucks and buses.
 Tata Motors has a global presence and is recognized as a significant player in the
automotive industry. The company's commitment to innovation, quality, and
sustainability has allowed it to compete on both domestic and international fronts.
Tata Motors has also expanded its presence in various international markets, with
operations in regions such as Europe, Africa, the Middle East, South Asia, and
Southeast Asia.
 Tata Motors is one of the sectors or company of the Tata Group and one of the
highest earner in automobile industry.
KEY POINTS ABOUT TATA MOTORS

• Product Range: Tata Motors manufactures a diverse portfolio of


vehicles, including the Tata Tiago, Tata Nexon, Tata Harrier, Tata
Safari, and commercial vehicles like Tata Ace and Tata Prima.
• Global Presence: Tata Motors has a strong international presence,
with manufacturing and assembly plants in various countries,
including the United Kingdom, South Africa, and Thailand.
• Sustainability: Tata Motors is committed to sustainability and has
introduced electric and hybrid vehicles as part of its efforts to
reduce its environmental impact. The company's electric vehicle,
the Tata Nexon EV, is a notable example.
• Innovations: The company has invested in research and
development to introduce innovative features and technologies in
its vehicles, such as advanced safety features, connectivity
solutions, and fuel-efficient engines.
• Commercial Vehicles: Tata Motors is a leader in the Indian
commercial vehicle segment, offering a wide range of trucks and
buses for various industries and applications.
SIGNIFICANCE OF STUDYING COMPANY’S ADVERTISING TECHNIQUES
Studying a company's advertising techniques is significant for various reasons, as it provides valuable insights and
benefits to different stakeholders, including consumers, businesses, marketers, and investors. Here are some key
reasons why studying a company's advertising techniques is important:
• Market Trends and Consumer Behavior: Analyzing advertising techniques can reveal broader market trends
and shifts in consumer behavior. Advertisers often adapt to changing consumer preferences and behaviors,
making advertisements a barometer of market dynamics.
• Brand Perception and Image: Advertising shapes how consumers perceive a brand. Studying a company's
advertising helps assess how it aims to position itself in the market and whether it's successful in doing so.
• Competitive Analysis: Companies often use advertising to differentiate themselves from competitors. Studying
competitors' advertising can provide insights into their strategies, strengths, and weaknesses, helping
businesses develop their own strategies.
• Product Innovation and Development: Advertising can reveal new product launches or features. This
information is valuable for businesses looking to stay competitive and innovative.
• Investment Decisions: Investors use advertising data to assess a company's marketing efforts and its potential
impact on revenue and profitability. Effective advertising can contribute to a company's financial success.
BACKGOUND
HISTORICAL OVERVIEW OF TATA MOTORS
1945 - 1950s: The Early Years
Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. (TELCO) to manufacture locomotives and other engineering
products.. In the 1950s, Tata Motors began collaborating with international automobile manufacturers like Daimler-Benz and started producing
commercial vehicles in India.
1960s - 1970s: Commercial Vehicle Expansion
Tata Motors expanded its commercial vehicle production and introduced models like the Tata 407, which became popular for transporting goods
in India.
1980s - 1990s: Passenger Car Entry and Global Ambitions
Tata Motors ventured into the passenger car market in the 1980s with the Tata Sierra, an SUV. This marked the company's entry into the
passenger vehicle segment. In the 1990s, Tata Motors expanded its global presence by exporting its commercial vehicles and passenger cars to
various countries. The Tata Indica, India's first indigenously designed passenger car, was launched during this period.
2000s: International Acquisitions and Innovation
Tata Motors gained international recognition in 2008 when it acquired Jaguar Land Rover (JLR) from Ford Motor Company. This acquisition
allowed Tata Motors to enter the luxury car market. The Tata Nano, introduced in 2008, was marketed as the world's cheapest car, designed to
make personal transportation more affordable in India.
2010s - 2020s: Electric Vehicles and Sustainability
Tata Motors placed a strong emphasis on sustainability and electric mobility in the 2010s. The Tata Nano Electric, Tata Indica Vista Electric, and
Tata Tigor Electric were some of the electric vehicle offerings. The Tata Nano, however, faced challenges in the market and was eventually
discontinued. Tata Motors introduced new passenger car models like the Tata Tiago, Tata Nexon , Tata Harrier, and Tata Safari, which received
positive responses. The company continued to expand its global footprint, with manufacturing and assembly operations in various countries.
Tata Motors focused on safety features, design, and technology to meet evolving customer demands.
CURRENT POSITION OF TATA MOTORS
TATA MOTORS ANNUAL REPORT(2022-23) ANALYSIS

No. of Months Year Ending 12 Mar-22* 12 Mar-23* % Change


TATA MOTORS Income Statement Analysis: Net Sales Rs m 2,784,536 3,459,670 24.2%
Other income Rs m 44,242 47,371 7.1%

• Operating income during the year rose 24.2% on a Total Revenues Rs m 2,828,778 3,507,040 24.0%
year-on-year (YoY) basis. Gross profit Rs m 227,199 334,063 47.0%
• The company's operating profit increased by 47.0% Depreciation Rs m 248,357 248,604 0.1%
YoY during the fiscal. Operating profit margins Interest Rs m 93,119 102,255 9.8%
witnessed a fall and down at 9.7% in FY23 as against
8.2% in FY22. Profit before tax Rs m -70,034 30,576 NA
Tax Rs m 42,313 7,041 -83.4%
• Depreciation charges increased by 0.1% and finance
costs increased by 9.8% YoY, respectively. Profit after tax Rs m -112,347 23,535 NA

• Other income grew by 7.1% YoY. Gross profit


margin
% 8.2 9.7

• Net profit for the year declined by NA YoY. Effective tax rate % -60.4 23.0
• Net profit margins during the year grew from 4.0% in Net profit margin % -4.0 0.7
FY22 to 0.7% in FY23.
TATA MOTORS Balance Sheet Analysis:
• The company's current liabilities during FY23
No. of Months Year Ending 12 Mar-22* 12 Mar-23* % Change
stood at Rs 1,550 billion as compared to Rs
1,507 billion in FY22, thereby witnessing an Networth Rs m 445,166 452,561 1.7
increase of 2.9%.
Current
• Long-term debt down at Rs 887 billion as Liabilities
Rs m 1,506,797 1,550,273 2.9

compared to Rs 978 billion during FY22, a fall Long-term


Rs m 977,592 886,958 -9.3
Debt
of 9.3%.
Total Liabilities Rs m 3,267,491 3,308,967 1.3
• Current assets rose 3% and stood at Rs 1,507
billion, while fixed assets fell 0% and stood at Current assets Rs m 1,464,537 1,507,007 2.9
Rs 1,794 billion in FY23. Fixed Assets Rs m 1,797,715 1,793,682 -0.2

• Overall, the total assets and liabilities for FY23 Total Assets Rs m 3,267,491 3,308,967 1.3
stood at Rs 3,309 billion as against Rs 3,267
billion during FY22, thereby witnessing a
growth of 1%.
TATA MOTORS Cash Flow Statement Analysis
No. of
• TATA MOTORS's cash flow from operating Particulars months
12 12
% Change
activities (CFO) during FY23 stood at Rs 354 Year Ending Mar-22 Mar-23
billion, an improvement of 147.8% on a YoY
basis. Cash Flow
from Operating Rs m 142,828 353,880 147.8%
• Cash flow from investing activities (CFI) during Activities
FY23 stood at Rs -168 billion, an improvement
of 251.9% on a YoY basis. Cash Flow
from Investing Rs m -47,751 -168,042 -
• Cash flow from financial activities (CFF) during Activities
FY23 stood at Rs -262 billion on a YoY basis.
Cash Flow
• Overall, net cash flows for the company from Financing Rs m -33,802 -262,429 -
during FY23 stood at Rs -63 billion from the Rs Activities
65 billion net cash flows seen during FY22.
Net Cash Flow Rs m 64,590 -62,721 -
Ratio Analysis for TATA MOTORS
Solvency Ratios
• Current Ratio: The company's current ratio improved and stood at 1.0x
during FY23, from 1.0x during FY22. The current ratio measures the
company's ability to pay short-term and long-term obligations.
No. of Months Year Ending 12 Mar-22* 12 Mar-23*
• Interest Coverage Ratio: The company's interest coverage ratio improved
and stood at 1.3x during FY23, from 0.2x during FY22. The interest Current ratio x 1.0 1.0
coverage ratio of a company states how easily a company can pay its
interest expense on outstanding debt. A higher ratio is preferable. Debtors’ Days Days 2 2

Profitability Ratios Interest


x 0.2 1.3
coverage
• Return on Equity( ROE): The ROE for the company improved and stood at
Debt to equity
5.2% during FY23, from -25.2% during FY23. The ROE measures the ability ratio
x 2.2 2.0
of a firm to generate profits from its shareholders capital in the company. Return on
% -0.6 3.8
• Return on Capital Employed (ROCE): The ROCE for the company assets

improved and stood at 9.9% during FY23, from 1.6% during FY22. The Return on equity % -25.2 5.2
ROCE measures the ability of a firm to generate profits from its total
capital (shareholder capital plus debt capital) employed in the company. Return on
capital % 1.6 9.9
• Return on Assets (ROA): The ROA of the company improved and stood at employed
3.8% during FY23, from -0.6% during FY22. The ROA measures how
efficiently the company uses its assets to generate earnings.
Current Valuations for TATA MOTORS TATA MOTORS Share Price Performance

• The trailing twelve-month earnings per share • Over the last one year, TATA MOTORS share price has
(EPS) of the company stands at Rs 6.1, an moved up from Rs 405.1 to Rs 567.1, registering a gain
improvement from the EPS of Rs -29.3 recorded of Rs 162.0 or around 40.0%.
last year. • Meanwhile, the S&P BSE AUTO Index is trading at Rs
• The price to earnings (P/E) ratio, at the current 33,830.6 (up 0.0%). Over the last one year it has moved
price of Rs 567.1, stands at 80.0 times its trailing up from 25,298.0 to 33,830.6, a gain of 8,533 points (up
twelve months earnings. 33.7%).
• Overall, the S&P BSE SENSEX is up 19.3% over the year.
• The price to book value (P/BV) ratio at current
price levels stands at 4.2 times, while the price to
sales ratio stands at 0.6 times.
• The company's price to cash flow (P/CF) ratio
stood at 6.1 times its end-of-year operating cash
flow earnings.
TECHNIQUES AND METHODS OF ADVERTISING USED BY TATA
MOTORS
Tata Motors, like many other automotive companies, uses a variety of advertising
techniques to promote its vehicles and brand. Here are some advertising techniques
that Tata Motors:
 Television Commercials: Television ads are a staple in automotive advertising.
Tata Motors creates engaging and visually appealing commercials that highlight
the features, performance, and benefits of their vehicles.
 Print Advertising: Tata Motors may place advertisements in newspapers,
magazines, and automotive publications to reach a wider audience. These ads
often include high-quality images and detailed specifications of their vehicles.
 Online Advertising: In the digital age, online advertising is crucial. Tata Motors
advertises on various websites, social media platforms, and search engines. They
may use banner ads, sponsored content, and pay-per-click campaigns to target
specific demographics.
 Content Marketing: Tata Motors might create informative and engaging content
related to automobiles. This can include blog posts, videos, and articles that
provide valuable information to potential customers while subtly promoting their
vehicles.
 Sponsorships and Partnerships: Tata Motors may sponsor events, sports teams,
or other organizations to increase brand visibility. These partnerships can also
lead to co-branded advertising campaigns.
• Test Drives and Events: Organizing test drive events allows potential customers to
experience Tata Motors' vehicles firsthand. These events can be promoted through
various advertising channels.
• Celebrity Endorsements: Companies sometimes use celebrities to endorse their
products. Tata Motors might enlist the help of well-known personalities to create a
buzz around their vehicles.
• Comparative Advertising: Tata Motors may compare their vehicles with competitors'
models to highlight the advantages of choosing their brand.
• Environmental and Social Responsibility: Highlighting the company's commitment
to sustainability and social responsibility is becoming increasingly important. Tata
Motors may use advertisements to showcase their eco-friendly and socially
responsible initiatives.
• Interactive Advertising: Interactive ads, such as mobile apps or virtual reality
experiences, can engage customers in a unique way, allowing them to explore Tata
Motors' vehicles and features in a more immersive manner.
• Customer Testimonials: Featuring real customers sharing their positive experiences
with Tata Motors' vehicles can build trust and credibility.
ADVERTISING PATTERNS USED BY TATA MOTORS
• Product Features and Technology Showcase: Tata Motors often highlights the features
and technological advancements in their vehicles through advertising. This includes
showcasing innovations in safety, fuel efficiency, connectivity, and comfort to attract tech-
savvy consumers.
• Brand Endorsement: Tata Motors has occasionally used celebrity endorsements to
enhance the appeal of their products. Well-known personalities have been featured in
their advertising campaigns to create a positive brand image and connect with a broader
audience.
• Emotional Storytelling: Tata Motors has used emotional storytelling in their advertising
campaigns to connect with consumers on a deeper level. These ads often focus on the
values of trust, reliability, and family.
• Customer Testimonials: Sharing real customer experiences and testimonials in
advertisements is a common tactic to build trust and credibility among potential buyers.
SUCCESSFUL ADVERTISING CAMPAIGNS OF TATA MOTORS
#GetSetBolt Campaign (2015) Atmanirbharta by Tata Motors’ – A digital
One of the most successful marketing campaigns of Tata campaign vocalising the need for Local
Motors, this campaign was well received by the Tata Motors, India’s leading auto brand in association with
consumers, boosting Tata Bolt car sales. At a time when WATConsult, the globally awarded hybrid digital agency from
most of the companies were only using Facebook as the house of Dentsu Aegis Network (DAN) India, today
their source of online marketing, Tata Motors used a announced the launch of ‘Atmanirbharta by Tata Motors’ – a
more innovative and unconventional approach. They digital campaign highlighting the existence of localisation in
made use of a gamification strategy which was everything that we do. Designed and conceptualised by
advertised through Twitter and Youtube. The campaign WATConsult, this campaign has been released ahead of the
hired the services of four popular influencers and glorious occasion of India’s 74th Independence Day and
followed the theme of a reality show. The campaign emphasises on the meaning of ‘Atmanirbharta’ or self-
helped create a buzz among the audience and a good reliance for individuals and the nation as a whole.
brand image for the Tata Bolt hatchback. The campaign
received over 1500 mentions on Twitter.
KEY FINDINGS
• The Tata Motors strong hold has always been their brand image that have built a loyal customers
along the years.
• The pricing strategy is the most effective. Even though the different subsidiaries follow different
pricing methods for product and services but the Tata Motors in general follow a differential
pricing strategy.
• Tata’s advertisement campaigns connect strongly with people as the Indian market is mostly value
and price sensitive.
• Tata Motors is well aware of their corporate social responsibilities and have served greatly during
the recent pandemic.
• Their strong distribution network has the potential to reach the potential market.
• Financial planning is not the strongest hold.
• Organizational structure has been unclear because of the various subsidiaries.
• Tata Motors focus on various age groups of their potential customer and set their pricing
accordingly.
• Tata Motors marketing mix give them diverse opportunities to set multiple target markets.
SUGGESTIONS
• To re-evaluate its current orientation and try to keep its focus on a limited number of
priorities.
• The global expansion did not bring any results so for the easier management and
increased profitability it is advised to consider before branching out.
• It is also recommended to integrate social responsibility efforts for retaining talent in the
corporation since the country is already experiencing immense shortage of workforce
• Introduce measures for effective financial planning.
• Train managers through coaching sessions and courses.
• It is advisable to disregard underperforming industries after 10 years.
• Introduce micromanagement through the concentration of funds.
• It is advisable, for the next three years the strategy of Tata Motors should be focused on
increasing its local presence and revenue to break the cycle of the negative attitudes
shown by local consumers.
REFERENCES
• https://www.tatamotors.com
• https://www.researchgate.net
• https://www.bseindia.com
• https://www.moneycontrol.com
• https://www.marketing91.com
• https://www.equitymaster.com
THANKYOU

You might also like