marketing mix on tata nano

Marketing Mix Tata Nano

1

Company profile

Mr. Ratan Tata is the chairman of the TATA Company

The business operations of the Tata group - communications and

information technology, engineering, materials, services, energy, consumer

products and chemicals.

The major companies-Tata Steel, Tata Motors, Tata Consultancy Services

(TCS), Tata Power, Tata Chemicals, Tata Tea, Indian Hotels and Tata

Communications

Tata group provides IT solutions and services to customers worldwide -

systems integration, hardware manufacturing and educational services.

Tata Motors Limited is India's largest automobile company, with revenues

of Rs. 32,426 crores (USD 7.2 billion) in 2006-07.

It is the leader by commercial vehicles in each segment.

The company is the world's fifth M&HCV manufacturer, and the world's

second largest medium and heavy bus manufacturer.

Annual turnover of over Rs 108 billion.

The company has manufacturing plants at Jamshedpur, Pune and Lucknow,

Bangalore, Chennai, Noida, Uttaranchal & Singur, & has many more

manufacturing & R&D units abroad.

Focusing on new technologies and innovation to drive its business in India.


2

Marketing Mix

1. Product: Tata has a very wide range of products it has passenger cars,

utility vehicles, Trucks, Commercial passenger Carriers and Defence

Vehicles.

Nano received media attention due to its targeted low price.

The Tata Nano is a rear-engine, fourpassenger ,city car built by Tata

Motors,

It was first presented at the 9th annual Auto Expo on 10 January 2008,

at Pragati Maidan in New Delhi, India.

From Singur to Pantnagar (Uttakrkhand)

Aimed primarily at the Indian market.


3

2. Price: The prices of Tata motors are generally affordable acceptable by

the general public at large. Tata always have something for the lower

class people with Nano being their trump card. Giving discount every

month and special promotion for certain type of vehicle also one of the

strong strategy use by Tata Motors. Discount can be made from

Company’s profit or from dealer’s profit at certain range.

Pricing strategies:

Penetration pricing

Low pricing policy with minimum profit margin.

Though the one lakh price tag is not fixed by TATA group, it was the

word of mouth of people which fixed that range. This expectation

of people creates a big challenge for the company.

3. Place: Tata Motors has an extensive dealer network covering Indian and

International markets. Wherever you are, there is a Tata Motors Sales

and Service dealership close to you. The channel of distribution, physical

location, and dealership method of distribution and sales is generally

adopted. The distribution of vehicle must be in a very systematic way,

from the plant to dealership and to end user. This is not only in India itself

but also to the world-wide dealership.


4

4. Promotion: Tata motors promote their products via Advetising and after

sales services.

Enough use of one of the most important element of promotion mix,

publicity reduces the necessity of other promotional devices for nano.

Publicity as “One lakh car” by mouth to mouth.

Auto expo 2008,New Delhi & Geneva

Publicity through print & electronic media

Singur violation.

For other type of promotional activities, cost factor that is 1 lakh price tag is to be

keep in mind, TATA is going to launch its nano mobile for indicom user, nano

watches, nano T-shirts available in Westside stores.

Advertising: - TV & other mass media will be less effective, thus too much money

will not be invested in this regard. Mainly word of mouth advertising will get more

emphasis.

Internet will be a major media for advertising.

Online buzz:-Nano has gone beyond the traditional methods of advertising

and promotion online.

Official Orkut community Members - 6,906.

Official Facebook Group Fans - 4,210

Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when

I began writing this post)

No. of Blog Posts - 61,664

TATA have a blog on the official website where they have been discussing

quite interesting topics and generally maintaining an active community.


5

5. People: Tata Motors owe our success to the highly motivated and talented

staff. Our recruitment division picks the crème-de-la-crème from premier

universities, management and engineering institutes in India. They put them

through rigorous training programmes to hone their entrepreneurial skills and

impart comprehensive product knowledge.

6. Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for

achieving excellence in overall Company performance.

7. Physical Evidence: The management of the company has managed to keep

their hopes alive even in this recession and hopes that the worse is behind Tata

Motors recently launched the most awaited car of the year, Tata Nano and the

company has already received 203,000 booking that are fully paid and 70 percent

of the applicants are ready to wait till the end of 2010 for the car to be

manufactured.


6

SWOT Analysis

Strengths:

Low Price & stylish

High fuel effeciency

Brand name,

First innovation

35 Patents for innovation

Environmental friendly- Green House Effect

Variometric Gear System- Magnifies Torque

Tested successfully for crumple zones

Weaknesses:

Fiber body,

Low suspension power,

Low engine capacity,

Light vehicle,

Not suitable fir hilly areas

Less Boot space

Poor engine cooling & hence over heating

No headlight levelers

No modern facilities- ABS, PS, AC


7

Opportunities:

Bikers can be motivated

Created a Niche Market

Creates Employment

Auto Finance

Diesel & Electric Variant

Developing Low Price Engine Oil

Threats:

New Competitor- Bajaj, Honda Siel, GM etc.

REVA an electric car

Traffic Congestion

Government may increase taxes in metros

Rising cost of raw material

Reducing parking space


8

Impact

Economical Impact

Boom in the banking and financial sector

Competitive advantage

Mass Selling and production

Employment

Energy security issue

Social Impact of TATA NANO

Living standard up gradation

Increased safety

1 million cars per year

Inadequate infrastructure

Traffic congestion

Parking problem

Price hike in real estate.


9

Impact of Inflation

Introducing the car with an artificially low

price through government subsidies and tax breaks

Forgoing profit on the car

Using vertical-integration to artificially boost

profits on cars at the expense of their

materials industries

Partially using inexpensive polymers or

biodegradable plastics instead of a full metal body

Raising the price of the car


10

Conclusion

Expand the Indian car market by 65%, according to rating agency CRISIL.

The low price makes the car affordable for families with incomes of Rs 1

lakh [1,00,000] per annum

The increase in the market is expected to push up car sales by 20% over

the previous year. “

Thus, the Indian Economy is expected to remain strong and grow in 2009

NANO definitely helps to come true for Middle Man’s Dream

It truly proved to be the cheapest car of the industry


11

Bibliography

Sites Referred:

http://www.scridb.com

http://www.marketing91.com/marketing-mix-tata-motors

http://www.tatamotors.com

http://www.tatanano.com

http://www.economictimes.com

http://www.srmuniv.ac.in/downloads/marketing-plan-for-tata-nano.pdf

Search engine used:

http://www.google.co.in

marketing mix on tata nano

Documents