In 2016, Tata Motors' market share in the Indian automotive industry stood at 4.6%, down by over 10% from 2010. By 2020, that market share grew marginally to 5%.
But as of January this year, the Mumbai headquartered carmaker has gradually become India’s third-largest with a market share of 14%, after Hyundai Motors with 15% and market leader Maruti Suzuki with a share of 42.5%, according to the Society of Indian Automobile Manufacturers.
Besides the product range and safety features, a large part of Tata Motors' success is credited to the company’s aggressive marketing strategy at the peak of the pandemic. In June 2020, the company splashed print ads with its ‘New Forever’ identity, a move that the company now reckons to be a pivotal moment in its history.
exchange4media caught up with Vinay Pant, Head-Marketing, Tata Motors Passenger Vehicles, to understand the company’s brand philosophy, marketing strategy and expansion plans:
Excerpts:
Early this year, Tata Motors ended Maruti's seven-year run as India's most valuable auto firm, in terms of market capitalisation. What does it mean for you?
It's a culmination of lots of years of hard effort. The transformation of the brand Tata Motors started in 2020. It was our chance to show the world what this Tata Motors is about. And that journey, which was about a complete transformation, whether it's the design of our cars or the performance of our cars, everything culminated in this sweet little spot that we finally earned this year. It shows the kind of product decisions that we took, the launching of the models, right, and the betting big on the Indian market.
The surge in customer satisfaction, reflected in the impressive 48% Net Promoter Score, speaks volumes about the brand's resonance with the Indian market. By anticipating trends and swiftly adapting, Tata Motors set itself apart. The introduction of innovative models like the Nixon and the Hydrogen Safari captured the imagination of consumers, establishing Tata Motors as a trendsetter in the industry.
With a remarkable 254% surge in social media sentiment driven by Tata Motors, the brand's buzz is palpable. From electric vehicles to commercial vehicles, Tata Motors continues to lead the conversation, demonstrating an unwavering commitment to customer satisfaction and innovation. This milestone underscores Tata Motors' relentless pursuit of excellence and its enduring bond with its customers.
Our production, design, and marketing teams have tirelessly worked together, resulting in successful launches: Nixon and Hydrogen Safari. This achievement underscores our commitment to innovation.
What are your top priorities and challenges at this point?
There is so much more that can be done and this means that we need to keep on coming up with the path-breaking kind of products, interesting marketing campaigns, and good pricing points, which are sweet spots and they work for you in the market. I think it's all about our “New Forever” philosophy that focuses on continuously improving the value of their cars for customers, including adding new features, technology, and functionality based on customer feedback.
We keep on doing something to shake the apple cart because otherwise usually the product cycles that we have in our industry are around three to six years, three years for a minor change and five to six years for a major change. The customer today is much more aware of things that are happening around him and he wants to see those things in our car. Customers feel Tata Motors is an Indian brand they take a lot of pride in it. We try to live up to their expectations.
How has consumer preference evolved in India over the years?
The evolution of consumer preferences in India's automotive landscape reflects a shift from mere mobility solutions to personalized expressions of lifestyle and values. Affordability remains crucial, but safety and technology have emerged as key considerations. Features like air conditioning and sunroofs, once seen as luxuries, are now basic necessities.
Moreover, consumers seek eco-friendly options like CNG and EVs, alongside traditional petrol and diesel vehicles. Tata Motors has embraced this diversity by democratizing features across trim levels, catering to individual preferences. As the industry adapts to this nuanced market, cars are no longer just modes of transportation but extensions of personal identity, embodying the ethos of today's discerning Indian consumer.
Colours, for example, it used to be all about whites, greys and silvers. Today, the penetration of red, purple, orange and yellow has increased. Who would have expected those kinds of colours in India? But that's what the Indian customer is about. And that's what we are providing to them.
What percentage of cars are ordered in the colour white?
At one time, white and greys were around 70-80% and chromatic colours were much lower. Now that has changed. White and grey cars could be 30-40% in our case. Earlier, cars were a basic mobility solution. Today, it is the reflection of your personality. You see the vivaciousness of the colours that we as Indians wear. I mean, you go to Europe, you go to Japan, it's very basic blues and grays and blacks that they wear. Same is true with cars.
An increasing number of women are also buying cars these days. What kind of features are you incorporating for women customers?
The penetration of cars among women has been increasing, it's in double digits. Usually, the features are the same because when it comes to technology, women are no less today. Women also want to experiment much more with colours instead of black and white.
We do a lot of research to provide more features for women customers. For example, Harrier and Safari have memory seat adjustments available for the driver’s seat. This helps when a man and a woman in the family both drive the same car.
What is the share of your sales in the rural market and how have you adapted your marketing strategies to effectively reach rural consumers?
Rural market has been growing exponentially. A couple of years ago, its share in our total PV sales used to be hardly around 20%, but in the last two-three years, it has gone up to 40-45%.
A lot of activities are done for rural markets. Our ‘Anubhav vans’ go door to door to make them experience the cars. We also put up big screens to display car features. A large number of kids from villages are going to large cities for studies. So they have exposure to cars, they have aspirations. Many families, in villages and even in cities, buy cars even if they don’t use them on a regular basis. They use bikes usually but cars come out when they are going as a family.
We would also like to understand your media mix in general and for rural in particular.
Rural marketing is largely print-based and whenever there's a launch or a big news, it will be the television. But increasingly, it comes to tactical stuff. Since mobile phones are becoming bigger now, hyperlocal advertising, say within 20-25 kilometres of the dealer location, is being done increasingly through mobile phones. A lot of digital spends goes into mobile today. Over 95% of Tata Motors search starts from the mobile. YouTube is quite popular in rural areas.
There is a lot of vernacular content you can see from there. For awareness building, there is still a lot of print, but otherwise, what you call more middle funnel and lower funnel activities, digital is becoming very big.
The difference between an urban and a rural customer is the way you approach them in terms of content.
How much of your ad spend is actually allocated to digital advertising? Within digital, which platform gives you the highest ROI?
If you talk about launch, television, print, outdoors and digital become nearly equal. When it comes to regular sales promotion and those tactical kinds of stuff, it is largely about the print and outdoors sometimes and radio. Again, when it comes to digital, there are certain reasons where YouTube becomes very important.
How are you incorporating AI and Generative AI into your marketing strategies?
AI is on track to become mainstream in the near future, with initial developments already underway. Personalization has emerged as a crucial aspect. Our recent website overhaul reflects this focus. Depending on your profile and past interactions, such as viewing a car ad, you'll notice tailored content on the homepage upon your return.
Have you deployed AI in media planning as well as certain tools are available now?
To some extent, it is being done, but at present it's more about experimentation in digital media planning.
