Question

4C strategies of Tata Motors company at least 600 words

Answer 1

I am happy to answer about Tata motors

Let’s clarify the models:

The 4Cs to replace the 4Ps of the marketing mix: Consumer wants and needs; Cost to satisfy; Convenience to buy and Communication (Lauterborn, 1990).

4Cs_both models

Lauterborn’s 4Cs: Consumer wants and needs; Cost to satisfy; Convenience to buy and Communication.

In 1990 Bob Lauterborn wrote an article in Advertising Age saying how the 4Ps (he didn’t address the 7Ps) were dead and today’s marketer needed to address the real issues.

He suggested ‘Consumer wants and needs’ as the focus on being product-led to companies making things customers didn’t want. Tata Bolt was an example. So now Tata is trying to make not to repeat the same mistake. That's why brought fantastic models like Altroz that can easily attract customers.

His second ‘C’ is ‘Cost to satisfy’ on the basis that price was irrelevant as so many other factors were involved. Tata cars are cost effective when compared to its competitors. They always try to bring affordable cars with decent features. Tata Nano was an example.

There are many reasons behind it. I will try to cover few of them.

1. In house capabilities :Tata motors is one of the major companies of Tata Group. It has very good pool of knowledge through benchmarking and collaboration in commercial vehicle and passenger vehicle segments that they are using very effectively.
2. Supporting Group Companies : Support of other group companies is very vital too, when it comes to cost of a car. TCS, TTL, TACO etc are working along with TML to develop concepts and making them real.
3. Local Supplier Base : Most of the suppliers for TML are based in Pune and near by region. They are developed over decades and are very much compatible with needs of TML.

The third ‘C’ is ‘Convenience to buy’ and admittedly, the ‘P’ for ‘Place’ always felt tenuous as it’s really about access to the product and the letter ‘P’ worked in the alliterative set!

Convenience to buy is an interesting concept as we live in a 24/7 always-on world. The concept of shopping from 9am to 5pm, has gone.

Tata Motors' 'Click to Drive' program integrates 750 outlets across the country into one online platform. To buy, customers have to register on the 'Click to Drive' website of the company, select the product of choice from the passenger vehicles' portfolio which has a video brochure, select a dealer nearest to them and select either home delivery or collect at dealership option. The booking amount can also be paid online while financing and exchange services, details on price quotes and offers - if any - would also be reflected.

Tata Motors says that the entire sales process is completed virtually using online communication tools such as emails, texting apps and video calls.

Here is a list of car makers in India who have taken a digital route to boost sales amid the coronavirus crisis.
Here is a list of car makers in India who have taken a digital route to boost sales amid the coronavirus crisis.
Altroz, the latest product from the company, also comes with an immersive virtual showroom experience, called Imaginator, allowing customers to customize the vehicle by selecting from a range of variants and colors as well as factory customization options.

The final ‘C’ is collection is communication. Lauterborn viewed promotion as manipulative and described it as a one-way system with communications pushed from company to consumer. His view of communication was that it should be about dialogue, a two-way conversation, between company and customer. Applying this in a digital sense, we can see customers creating communications through User Generated Content, so perhaps Lauterborn’s comments were an early insight into the changing nature of customer communication.

Tata uses digital platforms to communicate with the customers. They spend lot of money for the television advertisements. Also they are now stepping into social media marketing. They already keep in touch with the customer through emails and text messages informing them about regular services and other cares.

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