Introduction Traditional marketing mix consists of 4Ps (Product, Price, Place, Promotion) now it’s extended to 7Ps the additional 3Ps are useful for services industry which will help the company to provide good services to their consumers. Only the additional 3Ps will be discussed which is related to services industry Following are the additional 1. People 2. Process 3. Physical INNOVATION Innovation in Tata Motors is not a recent phenomenon, but is a part of its legacy.
The Company’s culture of perpetual search for excellence is highly attributed to the Tata’s thos and incessant efforts of its employees in the past several decades to serve the customers by bringing continuous innovation in its products and processes. I would first touch upon three major areas to illustrate how Tata Motors has effected innovation in the past several years. 1. Products 2. Processes 3.
Tata Motors created several breakthrough products in the past which changed the market dynamics and helped in providing a new customer experience. 1. 407 platforms in 1980s Japanese LCV players had made inroads into the Indian automobile market in the 1980s. Tata Motors came out with its innovative 407 platform which was designed to suit the Indian conditions. It quickly became the bestseller in LCVs and the platform still continues control 2/3rd of the market even in the third decade of its existence. . Indica in the late 90s This was the first indigenously designed passenger car in India and it was innovative in the sense that it provided more value for money in terms of internal space (comparable to the Ambassador which was the benchmark in the country for internal space), contemporary features (comparable to Maruti Zen) and all that at a very ompetitive price. 3. ACE – Last mile distribution vehicle… Ace was India’s first mint-truck launched in 2005.
While heavy trucks ply on the highways, research showed the need for a small sub one-tone truck for intracity and truck terminal-to-nearby locations connectivity. The Ace helped in meeting that last mile distribution need with emergence of Hub and spoke transportation model in The vehicle offered 4 wheeler functionality at 3 Wheelers price. The unconventional design features used in the vehicle were: Innovative 2 cylinder Indica engine Semi-monologue body to withstand abuse ? Rigid front axle and rear wheel drive for low cost Flat faces vs. emi-forward face to enhance the loading space. 4. NANO – the People’s car/ Rupees 1 lakh car The target price itself became the source of innovation, as you all must have read that the big names in the industry Just rubbished it as false claims and commented that it was impossible to make a “CAR” at that price. This was made possible through series of innovative ideas which led to acquisition of 37 patents by Tata Motors. Engine was packaged on the rear side. cylinder engine (conventionally there are 3-4 cylinder engines) Identical handles nd mechanisms for left and right side doors Instrument cluster in the middle of the dashboard Unconventional seats Interior space was maximized by pushing wheels to the corners and power train below the rear seat. Product created was very contemporary and It has sufficient Space inside to accommodate 4 persons comfortably. Highly fuel efficient Exceeds the current Safety requirements Complies with the current emission requirements. 5.
WORLD TRUCK – a new era in the Indian automobile industry The new generation range of trucks which would match with the best in the world in performance at a ower life-cycle cost is being unveiled in Just a few hours from now. It will create a new benchmark in India in terms of power, speed, carrying capacity, operating economy and trims and a new experience for the drivers in terms of drivability and comfort. PROCESS: Sustainability of innovation in products needed to be complemented with innovative changes in the organizational processes too.
Some examples are: Adoption of the Tata Business Excellence Model (TBEM): It is based on Malcolm Baldridge Award for business excellence and Balance Score Card. This has created a ulture of exploring various innovative ways to achieve excellence in all the organizational processes. Tata Motors in the past has received the “Hall of Fame” award for BSC, JRQV award, CII-EXIM award and many other such awards which prove the effective deployment of the model. throughout the VALUE CHAIN. Supply Side – Free-Markets/ARlBA for e-Sourcing, Supplier Relationship Management (SRM). Design – PLM, Advanced Computer Aided design (CAD), etc.
Enterprise Resource Planning – SAP for enhancing transaction effectiveness. Demand side – (CRM) with SIEBEL , a comprehensive Customer Relationship Management program, enabling it to gain market insights by exploiting the huge online customer transaction database. It is the largest deployment of a customer management tool across the automotive world till date. Product Development Process Institutionalized Stage Gate process in the organization is a benchmark in itself and ensures development of right product for the market and also an effective and efficient program management.