5 Year Strategy (FY20 – 24)

Tata Motors Prolife

1A

Expectations for the function (Prolife) from LOB (RMCCs, TGP, KA, STU, Defence)

EXPLICIT REQUIREMENTS BY LOBs TO THE FUNCTION IMPLICIT REQUIREMENTS BY LOBs

Who are Prolife customers, why they buy, Segmentation, analytics, Marketing & sales
<icon> <icon>
where are they, size? services

<icon> Ensure consistent good quality product Enhance Process & People Capability
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Competitive pricing, flexible discounts,

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incentives, timely payments, CP Profitability
Cost reduction, effectiveness & efficiency of
<icon>
FME, VME & Payables
<icon> Ensure availability

<icon> Fund, Stock & Core management

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Technology trends, regulations & their implications for the function

KEY EXTERNAL TRENDS IMPLICATIONS FOR THE FUNCTION

• Increased complexity of Product Portfolio.

<icon> Emission technology • Increased inventory
• Investment to reman new parts / aggregates
Technology Trends

1B
<icon> Enhanced warranty • Reduced overall demand.

• Increased life of aggregates reducing demand.

<icon> Better infrastructure • Reduced logistics time.
• Penetration to rural market

<icon> Axle load • Anticipated positive impact on demand

Regulation

1C

<icon> Scrappage policy • Tendency to Extend life of vehicle will increase & so
reman requirement will increase.
• Old aggregates availability will impact adversely.
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Competitive insights and their implications for the function

KEY EXTERNAL TRENDS IMPLICATIONS FOR THE FUNCTION

Segmentation to identify potential and actions.

Very low (20%) awareness of Prolife
<icon> Awareness enhancement by arranging Prolife Plant
brand and its value
visits of influencers.
Insights from Competition

Total cost to Customer is lower by 30 ~ Work to revise GST from 28% to 18% including labor
<icon>
40% by local mechanics cost at CPs, Provide low cost peripherals as kit.
1D

Post warranty, Customer prefer own or

<icon> local reconditioning due to cost & Reach customers through TGP – retail net
relationships

Introduce innovative finance schemes like discounting

<icon> Customers demand credit of 10 days finance processing cost, use of Emperor & delight
points.

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1E

FY19 performance review

FY19 PERFORMANCE REVIEW

FY19 Learnings so far (YTD)

Performance FY19 FY19
Measures
(Strategy), if
(Budgeted)
FY19 (YTD)
(Expected) • DWM, PDCA & Review governance helped to achieve
applicable meeting monthly targets consistently over 12 months.
Revenue (Rs 230 150 230 • Increase in vehicle coming to service net through Prolife
Cr) & TMGO not realized limiting sales through Service net.
31 16 31 • Detailed needs of systems not identified and acted
PBIT (Rs Cr)
upon for entering into new net – TGP
Total Long 3400 2700 3000 Plans for the rest of the year
Block sales
per month • CPs are encouraged to sell through mechanics. KA
special scheme released to increase sales through KA.
Long Block 500 0 200
SCV Engine warranty increased from 6/9 to 12 months.
sales per
month thr • South - Focused region for sales through TGP Selected
TGP Distributors, retailers & mechanics.
• Process and People capability enhancement WIP.

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5 Year vision and strategic objectives for the function
3A
5 Year Aspiration
Key Implications Innovate rebuilding solutions with passion to enhance the life of
2
• Top most gap is awareness about Prolife vehicles and reduce Total Cost of Ownership.
Brand and its Product values. SML – Sales  Deliver OE Performance at Optimum overall Cost
& Marketing services.  Grow 5 times in 5 Years
• Penetrate into recondition segment  Achieving Sustainable Financial Performance
addressing cost challenge.
• Finance, Credit & flexible discount.
3B
• CP payables & profitability.
• Fund, stock & core management.
• Penetrate through TGP into retail net
aggressively.
• Product portfolio – BSVI: DMF, EPB, Doser
• Focus on tooling, fixturing and gauging to
enhance process capability – quality &
productivity.
• Focus on people capability – Leadership &
Functional capability.

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 STRATEGIC OBJECTIVES

Revenue growth OF1 Grow revenue 5 times in 5 years Productivity improvement

with sustained profitability
Financial
OF2 5 times LB sales Rationalized product portfolio includes OF4 Total Cost to
OF3 BSVI technology intensive parts – DPF, Customer
EPB, Doser unit management

Value proposition
End Consumer Channel Partner
OC1
Enhance Customer satisfaction OC4 OC5
Customer

KA, STU, Defence

OC2 engagements Enhance Value
Enhance OC3 for Channel
Customer relationship
availability partners
management

Value creation Value Delivery

Business Process

Install Globally benchmarked processes in...

Rebuilding Customized Focused Mkt,

Fund
OP1 Processes
OP2
offering – Product, OP3 Core & FG OP4 Segment, Chanel,
SCM management Partners
Services, Schemes
OP5

A motivated, high performing and disciplined workforce

Culture and climate for action Strategic competencies Continuous Improvement
Learning & Growth

OL1 Develop a OL2 OL4 Map and source/ develop

Capability
organisational strategic competencies
building: Process OL6 WCQ /
structure in line & People Deming
with changing
(DWM,
business needs
OL5 Prepare & Deploy IT PDCA, Rev
OL3 roadmap Gov)
CFT & SDT Culture
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