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Tata Group is one of India’s largest and most respected business groups.The Group gave India her first steel plant, hydro-electric plant, inorganic chemistry plant and created a reservoir of scientific and technological manpower for the country. Its Trusts have instituted the Tata Institute of Social Sciences in 1936; India’s first cancer hospital, the Tata Memorial in 1941, and in 1945, the Tata Institute of Fundamental Research, which became the cradle of India’s Atomic energy program. Today, Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group has operations in more than 54 countries across six continents, and its companies export products and services to 120 nations.
The two Promoter companies of Tata Group are: Tata Sons and Tata Industries. Tata Sons is the promoter of all key companies of the Tata Group and holds the bulk of shareholding in these companies. Tata Sons is the owner of the Tata name and the Tata trademark, which are registered in India and several other countries. Tata Industries was set up by Tata Sons in 1945 as a managing agency for businesses it promoted. Tata Industries’ mandate was recast, in the early 1980s, to promote the Group’s entry into new and high-tech areas.
Now Tata groups operates in different sector such as
* Tata AutoComp Systems
Subsidiaries / associates / joint ventures: Automotive Composite Systems International, Automotive Stampings and Assemblies, Knorr Bremse Systems for Commercial Vehicles, TACO Engineering, TACO Faurecia Design Centre, TACO Hendrickson Suspension Systems, TACO Interiors and Plastics Division, TacoKunststofftechnik, TACO MobiApps Telematics, TACO Supply Chain Management, TACO Tooling, TACO Visteon Engineering Center, Tata Ficosa Automotive Systems, Tata Johnson Controls Automotive, Tata Toyo Radiator, Tata Yazaki AutoComp, TC Springs, Technical Stampings Automotive
* Tata Motors
Subsidiaries / associates / joint ventures: Concorde Motors, HV Axels, HV Transmissions, Nita Company, TAL Manufacturing Solutions, Tata Cummins, Tata Daewoo Commercial Vehicles Company, Tata Engineering Services, Tata Precision Industries, Tata Technologies, Telco Construction Equipment Company
(b) Engineering Services
(c) Engineering Products
* Tata Advanced Materials
* Tata Steel
Subsidiaries / associates / joint ventures: Hooghly Met Coke and Power Company, Jamshedpur Injection Powder (Jamipol), Lanka Special Steel, mjunction services, NatSteel, Sila Eastern Company, Tata Metaliks, Tata Pigments, Tata Ryerson, Tata Sponge Iron, Tata Refractories, Tayo Rolls, The Indian Steel and Wire Products, The Tinplate Company of India, TM International Logistics, Wires Division.
* Tata BP Solar India
* Tata Power
Subsidiaries / associates / joint ventures: Tata Ceramics, Tata Power Trading, North Delhi Power Limited
(b) Oil & Gas
* Tata Petro dyne
* Rallis India
* Tata Chemicals
* Tata Pigments
(a) Hotels and Realty
* Indian Hotels (Taj group)
Subsidiaries / associates / joint ventures: Taj Air , Roots Corporation (Ginger Hotels)
(b) Financial Services
(c) Other Services
* Tata Quality Management Services
* Tata Services
* Tata Strategic Management Group
6. Consumer Products
* Infiniti Retail
* Tata Tea
Subsidiaries / associates / joint ventures: Tetley Group, Tata Coffee, Tata Tetley, Tata Tea Inc
* Tata Ceramics
* Tata McGraw Hill Publishing Company
* Titan Industries
7. Information Systems and Communications
(a) Information Systems
* Nelito Systems
* Tata Consultancy Services
Subsidiaries / associates / joint ventures: APONLINE, Airline Financial Support Services, Aviation Software Development Consultancy, CMC, CMC Americas Inc, Conscripti, HOTV, Tata America International Corporation, WTI Advanced Technology
* Tata Sky
* Tata Teleservices
* Subsidiaries / associates / joint ventures: Tata Teleservices (Maharashtra), Tata Internet Services
(c) Industrial Automation
Subsidiaries / associates / joint ventures: Tatanet
Tata water purifier “Swach”
Tata is best known as for the low cost product. Recently Tata groups has launched its the world cheapest one lakh car i.e Nano. Now the company had came with the low cost water purifier in the market. It is considered as world cheapest water purifier.
Tata Industries, an incubator of ideas and an investor in sunrise industries, has identified opportunities in water, including making seawater drinkable and purifying sewage into potable water. Interestingly, group firm and home appliances maker Voltas, also undertakes water management and treatment projects. Tata Projects is setting up drinking water plants to treat subterranean water polluted by fluoride (defoliation units) in rural areas of Andhra Pradesh and Rajasthan, as part of a community initiative.
Swach means “clean” on Hindi. Is very affordable cost for the poor people of India which cannot afford highly purifier present in the market so it will save the lives of millions of people who die each year of waterborne diseases.
This will be considered as boon for the rural area people as they can acess the clean drinking water at low cost. Swach is convenient to use. It produces clean and safe water without using electric power or running water, which is often not available in rural areas. The cartridge bulb is packed with a purification medium which has the capability to kill bacteria and disease-causing organisms.
Amarketing planis a written document that details the necessary actions to achieve one or more marketing objectives. It can be for a product or service, abrand, or aproduct line. Marketing plans cover between one and five years. A marketing plan may be part of an overallbusiness plan. Solid marketing strategyis the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, a marketing plan without a sound strategic foundation is of little use.
Pure drinking water is basic human need of people. Most of people get water broune disease due to the contaminated water. Poor quality of drinking water is one of the global problem. In context of India, there is lack of supply of water in most of cities and the water which is supplied is contaminated. There is rapid industrialisation which is also contributing for the degradation of water.
So people get diseases like diarrhoea, cholera, etc. due to drinking of contaminated water. Most of affected area is the rural areas and low income group in the urban areas.
So company has came with water purifier with low cost to serve the people, so that they can get clean drinking water.
Some 1.2 billion people globally don’t have access to safe water, according to a 2006 UNDP report. Almost 80 per cent of diseases in developing countries are associated with water, causing some 3 million early deaths, according to a 2009 UNESCO report. In India alone, 380,000 children die each year from diarrhea, according to UNICEF.
The main objective to come with the solution of this global problem. To become the market leader in the field of safe drinking water provider and serve the people.
India has huge rural market about 60-70 % of people live in the rural area. The income level in the higher class in rural and lower level class of urban area has average income. So the potential market of swach is high.
Now after having the analysis of available of the potential market the market can be divided into different segments. There are different basis of segmentation of market for product such as geographical, psycho graphical, behavioural and demographic variables. Here for the potential market of water purifier can be segmented on the basis of geographical and behavioural variables.
In the geographical segmentation we can divide the potential customer in the in terms of density in rural and urban lower level people.
In the behavioural segmentation we can divide the people having high, average and low income group which has direct impact on the purchasing behaviour of people. After having properly segmenting the market the next step is to select target market
For the Tata water purifier the target market is the people in urban areas having low income and in rural areas. Especially to the place where there is low quality supply of water.
Now having targeted the product in the segmented market the next step is to create the image of product in market. As we know that Tata is already established brand in the market so the product will be easily positioned in the mind of customer.
We cannot survive just waiting for the customer to come to us. Instead, we must get better at focusing on the specific market segments whose needs match our offerings. Focus on targeted segments is the key to our future.
Therefore, we need to focus our marketing message and our product offerings. We need to develop our message, communicate it, and make good on it.
The target group of consumers for this product are those who has problem of safe cleaning drinking water who are situated in the urban and rural areas. They are affected by diseases which are generally caused by unsafe drinking waters. Such as diarrhoea, cholera etc there are also different disease which directly affect the children.
If we see the income level of these consumers it is between 2000-3000 pm. They don’t have purchasing power of the water purifier which a have high cost. And they cannot afford the maintenance of high cost water purifier. So they are bound to use traditional filters which are totally unsafe.
After having target market and its strategy the next step is to create the marketing mix for the targeted customer.
Here we have product named Swach by tata groups. It is the product manufactured by the Tata Chemicals by doing research for no. of years.
Each filter for the Tata Swach, which is packaged as a 19-liter, teal and white plastic box, having the filter cost 299. It will purify 800 gallons (3000) litres – about enough to provide a family of five, drinking water for a year.
It also doesn’t require any access to running water or electricity and saves Rs 2000 and with a replaceable battery kit costing Rs 365.
The filter uses paddy husk ash as a matrix, bound with microscopic particles of silver to kill the bacteria that cause 80 percent of waterborne disease, executives said.
Paddy husk ash has long been known for its cleansing properties — it has been used traditionally for tooth washing — and India produces about 20 million tons of it a year.
Tata has came with Swach which is easily affordable by rural masses. The product has two price tags i.e. Rs 749 and Rs 999. Both are below the one thousand price line. It is considered as the cheapest water purifier in the world. It is giving the quality of water as of its biggest competitor Puriet which is priced at Rs 2000 a piece.
The pricing strategy followed by Tata for its water purifier will be market penetration. In this pricing strategy the price is kept very low so that it penetrate deep in the market.
The price of Swach is very low than the other products in this market. As it is targeted for the rural areas, and it will help to penetrate the rural areas with the low price.
When we see the at the Michael Poter competitive advantage model company will follow
A COST LEADERSHIP STRATEGY is based on the concept that you can produce and market a good quality product or service at a lower cost than your competitors. These low costs should translate to profit margins that are higher than the industry average. Some of the conditions that should exist to support a cost leadership strategy include an on-going availability of operating capital, good process engineering skills, close management of labor, products designed for ease of manufacturing and low cost distribution.
There are two strategies the company follows while having the promotional activities such as
* The PUSH STRATEGY maximizes the use of all available channels of distribution to “push” the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing your need for advertising.
* The PULL STRATEGY requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. The objective is to “pull” the prospects into the various channel outlets creating a demand the channels cannot ignore.
For the Swach, push strategy will be used as this type of product is almost new to the rural market so the distributional channels will be used so that people can get easy access to this product. Swap will be made available in the local market.
There are different medium for have advertising such as t.v, radio news paper, magines, trade fairs etc. all the medium of advertisement will be used.
As we know that Swach is targeted in rural areas and most of rural people are not well educated so along with the advertisement in mass media, personal promotion will be also be used. So that information about the product can be given to general people.
The strategy in the advertising will be
The comparison about the quality of water will be focussed in comparison to the competitors offering at the price.
The family of product will be focussed in the advertisement. This will really make much difference as Tata has very good reputation in India.
As this product is new for the rural market. So huge distribution channels will be used reach each and every corner of Indian rural areas.
Tata is well established in the Indian market and it has huge distribution channel for its different product so Tata group plans to distribute the purifier using distribution networks of Rallis, Tata’s agrochemical subsidiary with over 30,000 retailers in rural India, and Tata Kisan Sansar, a farm services business run by Tata Chemicals, which reaches 2.5 million farmers.
The water purification market in recent years has caught the attention of multinationals. Hindustan Unilever launched Pureit in 2005, while Philips India launched Philips Intelligent Water Purifier in 2007. Aquaguard continues to be the leader in this category, where the penetration of water purifiers is a mere 2.5 %.
The main manufactures of water purifier in India are
There are different brands of water purifier in India such as
3. Alfa Water Purifiers
4. Aqua Water Purifiers
5. Astonik Water Purifiers
6. Bajaj Water Purifiers
7. Crompton Greaves Water Purifiers
8. Eureka Forbes Water Purifiers
9. Hemkund Water Purifiers
10. Hindustan UniLever Limited Water Purifiers
11. IKEA Magic
12. Jaipan Water Purifiers
13. KenStar Water Purifiers
14. Kent Water Purifiers
15. Maharaja Whiteline Water Purifiers
16. Micro Water Purifiers
17. Modi Hoover Water Purifiers
18. Moniba Anand Water Purifiers
19. Orpat Water Purifiers
20. Philips Water Purifiers
21. Pristine Water Purifiers
22. Resiline Water Purifiers
23. Sintex Water Purifiers
24. Ultra Care Water Purifiers
25. Ultra Guard Water Purifiers
26. Usha Brita Water Purifiers
27. Usha Water Purifiers
28. Guard Water Purifiers
29. Videocon Water Purifiers
30. WaterDoc Water Purifiers
31. Zero Water Purifiers
There is large no. of manufactures producing different water purifier in India. So Tata Swach has fierce competition.
Swach is only the water purifier in India which is priced below 1000 price line. Its next competitor is Hindustan Lever Limited’s Pureit which has the price tag of 2000. So swach is getting the competitive advantage on the price.
It’s cheaper than boiling water, cheaper than bottled water, and 2.5 times less expensive than Hindustan Unilever’s low-cost Pureit filter, according to data provided by the companies.
And no other water purifier has been targeted for rural masses. But the Swach is made taking care of the purchasing power of rural people and rural area is still un explored in this sector so Swach will get advantage of mass potential consumer.
Tata group is one of the popular brand in India almost all people knows Tata due to the auto mobile. Swach will get benefit of reliability of people about the Tata Group.
Tata has huge distribution channels of distribution and has excess to every corners of India. The cost of distribution will also be advantage of Tata against its competitor.
By positioning Swach as the low cost and cost effective product may also start cost cutting in the price of water purifier. Or may competitor may come with the similar type of product with similar price level. So to take with that Tata has planned for the alternative strategy to have high promotional activities.
The initial production of will be 1 million units a year from a Tata Chemicals plants Halida, West Bengal, with a planned ramp up to 3 million units annually with in five years.
We have planned to invest 1 billion rupees in the project over the next 5 years and eventually export the filter to Africa.
For manufacturing and distribution of Swach company has planned to invest Rs 100 crore. Swach will debut in Maharashtra, Karnataka and west Bengal and will be launched in other states.
It has been planned to market the purifier using the network of rallis, Tata’s agrochemical subsidiary with over 30,000 retailers in rural India and Tata Kisan Sansar, a farm services business run by Tata Chemicals which reaches 2.5 million farmers.
This product is having sophisticating technology so for the installation of the product the technician will be sent form Tata. It will have 1 year guarantee and free services period . Within this period if any problem with the operation of the purifier the technician will repair with in 48 hrs of complaint. If it is not possible to make there then it will be replaced with in further 3 days.
Marketing management by Philip Kotler.
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