1. MANAGEMENT PLAN OF JAGUAR AND LAND ROVER FOR TATA MOTORS
Tata Motors Limited, India’s largest automobile company and leader in
commercial vehicles is also the second largest in the passenger vehicles market. We are the
world’s fifth largest in the medium and heavy commercial vehicle segment and the world’s
second largest medium and heavy bus manufacturer.
Our company's 22,000 employees are guided by the vision to be the "best in the
manner in which we operate, best in the products we deliver and best in our value system and
ethics."1
Starting from 1859, when we were established, we have had a rich culture and
heritage. We have always been a company that was driven by its values. The age-old values
we have been following are Integrity, Understanding, Excellence, Unity and Responsibility.2
Our main policy in recent times have our drive to go global with our aggressive inorganic
route to growth. Our major acquisitions in the recent two years have been Daewoo
commercial vehicles in South Korea, Hispano Carrocera in Spain, Tata Finance and Incat
International in UK. We want to acquire something that gives us new technology, new
markets, new products, new customer bases or an idea to develop a new product and only if
the deal is financially sensible.
We acquired Jaguar and Land Rover from Ford for $2 billion. It has been
profitable for us because when Ford acquired Jaguar it was for $2.5 billion way back in 1989.
Now we have got it in a cheaper price. Since we have both Jaguar and Land Rover in our
hands now, we are going to get the best out of it.
We have actually chalked out a business plan for maintaining both Jaguar and
Rover. Our marketing strategy for Jaguar and Rover would concentrate more on the target
market. Currently our research team has found out that the target market for Jaguar has
always been the niche class of people and mostly the people above the age of sixty bought it.
This is fine as far it keeps up the brand image of the car. But with a growing population of a
the younger people we have to come out with some trendy models of Jaguar. If we look at
demographics, Jaguar and Rover concentrated mostly on the European and the North
American segment of the world. It had tough competition with the likes of BMW, Mercedes,
Porsche and Ferrari. So Jaguar was not able to capture the market there. It is not only US or
Europe where we get rich people. If we see minutely there are more emerging billionaires in
the Asian countries than there. Countries in the middle-east consist of a high class of people.
If we can brand our models here it will be more profitable. Also looking from the economic
point of view, we know these brands are costly. We are not going to bring down the price. It
is still going to target the rich. We would target the business class which comprises of people
from the age group of 30 to 50 years.
That was for Jaguar. For Rover we have planned for a new target market in
addition to the previous. We are planning to introduce Rover in India. This would be a totally
customised Rover model particularly designed for Indian roads.

2. Now from the production aspect we have seen that most of the production units of
Jaguar and Land Rover are in Britain and the best strategy would be to retain those
production units there. This would cancel the cost of building a new plant. This would also
save quite some jobs in Britain which would not make them unhappy. If necessary then cheap
labour from India will be transferred. Since Jaguar and Land Rover together employ 15,000
people in Britain, we are going to retain all three of these UK factories at Solihull, Castle
Bromwich in the Midlands and Halewood on Merseyside. Anyways Ford is still continuing
to supply the material for the production of Jaguar.
Besides these there are other Jaguar and Rover plants in South-East Asia, Japan
and Argentina. We continue production in these countries too. Increased production in these
countries would benefit us more because of low productivity tax there. Then these cars can be
exported to the European market and the US market to increase the export revenue and hence
more profit. This would help us solve the problems in the European market which is having
Euro as their currency. This helps in imposing high tax which increase production cost.
Another problem is that European countries have their own trade union. So the production
unit in Britain will be able to cut down costs on labour and wages.
Since Jaguar has mainly targeted the niche class of people so long we will
continue the same strategy. The main target would be the increasing profit. Once this has
been achieved, the next step would be to open a production plant in India which would bring
new jobs to the country. We have cheap labour and the increased productivity and export
earnings would add to the GDP of the country. This would require a huge investment that
will be met by the profit from the sales of these two brands. The only short term investment is
on production of these cars now. But once the sales gears up, we can plan for long term
investments. We have seen the growing market of SUVs in India. This brings forth the idea
of producing new models of Land Rover customized to the Indian road conditions.
We are planning to come out with independent production hubs that will focus on
making different vehicles at different locations, instead of the earlier integrated facility where
it had the commercial vehicle and passenger vehicle production lines in the same unit. Newer
models of Land Rovers suitable for Indian roads will be manufactured. This would definitely
increase the sales of Land Rover because we Indians always desire to drive a foreign SUV
and when our own company produces it would be a definite hit. Our design team is already
working with the compatible models with Indian roads.
Jaguar was already planning to expand its model range with at least three new
models after its sell-off by Ford to Tata. Executives and engineers are coming up with a new
GB40000 two-seat sports car, a two door coupe version of the XF saloon and four-door
version of the XF luxury coupe. None of these three models are officially signed but the plans
have been presented to Tata Motors’ management and this will be our key new programme.
We are actually researching on the energy sources for these two models. Both
Jaguar and Land Rover runs on petrol and diesel. But looking at the availability of these
resources we have decided to implement something new in these brands. This might retain

3. our customers for a longer period of time. Our research team is working on the
implementation of electricity in these cars. Land Rover being an off-road vehicle cannot be
run on electricity because of the immense consumption of power. But Jaguar cars can be run
on electric charge. Our main idea is to charge the engine of Jaguar. For this we are planning
to have charge stations like the normal gas stations. If we can charge the engine of the car in a
very short time and calculate the mileage it would give we can actually give new life to the
world by making a pollution free atmosphere. Yes, there is a huge investment in it if things
work out. The production of electricity and setting up charge stations would be a matter of
concern. This is still in the R&D phase.
Jaguar and Land Rover were expensive and ranged approximately above $30,000
to around $100,000. We are planning to reduce the price by around $5,000 to attract
customers. This would help us to gear up the sales and increase the profit margin.
Talking about investments we have already incurred a huge expense of $2 billion
acquiring Jaguar and Land Rover. We have decided to continue with the production in the
previous production units of Jaguar and Land Rover. There is not going to any more
investments in plants. The focus would be on the marketing aspect of it. Since Jaguar and
Land Rover lost its sales for inadequate marketing, we will focus on it. Investments would be
on advertising and hiring new brand ambassadors for the international market. We already
have some of the eminent personalities from India as our brand ambassadors for Tata Motors.
We are on talks with someone from Europe and the Hollywood for branding our cars for the
international segment which is our recent target market.
We are also investing on the R&D as we are planning to come out with an
alternative energy source. But this is a long-term investment. For the time being we do not
expect much return on the investments. The main motive is to bring a breakeven in the sales
and come out of the losses these companies have incurred. It was only Land Rover that could
keep its sales intact. So we are not anticipating any profit margin in this year. But for the next
two years we expect the profit margin to increase. Ford will continue supplying the raw
material for manufacturing Jaguar. For raising the operational cost of the company fresh
stocks are going to be released in recent times.
Our short and long term goals are clear now. Now the most important is who are
going to be the part of this new venture. Since we are going global, we are planning to keep
some of the officials of Jaguar and Land Rover who were working with Ford. Our
management style has always been to retain the best. The previous officials are well
accustomed with the business process going on there and it would be easier for us to deal
with the complicacies that may arise. This would also actually give us time to train our own
people to work in a global environment.
Since our target market is now more focussed on the younger people it would ask
for new trendy designs. For this we need fresh talents with new innovative ideas. We have
designers in India who are internationally acclaimed. Hiring them is also a good option. Also
automobile engineers and designers from across the world can be hired. Since our major

4. plants are in Britain, Japan, Argentina and South-East Asia we will hire fresh talents from
these places. This would also create a well being with the people of those countries. This
would cost more because labour is not cheap everywhere but for the betterment of the
company and to gain long term returns it is necessary. Giving employment to the local people
would help us address the issues of unionization. The key ideas for motivating our workforce
would be to spread the vision of Tata that has been followed since the time the company is.
Moreover it is necessary to make them understand that if Tata is able to come out with the
cheapest car in the world using its own engineering which many big companies have not been
able to do then managing Jaguar and Rover should not be difficult.
Tata Motors has an age old tradition to be engaged in community welfare take
social initiatives on labour and environment standards in compliance with the principles of
the Global Compact. They play a major role in serving rural communities. This makes the
population of India so much loyal to this company. We are going to follow maintain our same
attitude towards the welfare of the country and the world as a whole. We are going to provide
free education for the children of the labours working in Tata Motors both national and in the
global space. Social awareness programs are also one of our key activities.
To end with I would like to say that Jaguar and Land Rover has not fallen into the
wrong hands. We at Tata are going to remould the future of these two international luxury
brands. Our investment plans, new designs with a scope for alternate energy usage, our new
target markets and retaining the best both production units and talents, hiring fresh talents
from around the world is definitely going to make us a global company. All our teams
(marketing, production, design, finance and HR) have come together for this new venture and
we keep our fingers crossed for a new revelation. We made the Nano. Now we have Jaguar
and Land Rover!
Credits:
1- http://www.tatamotors.com/our_world/profile.php
2- http://www.tata.com/0_about_us/values_purpose.htm