Tata Motors Limited is an Indian multinational automotive manufacturing company. It is a member of the Tata Group and the company is mainly engaged in the production and distribution of trucks, cars, vans, sports cars, buses, coaches, military vehicles, etc. Its headquarters is situated in Mumbai, Maharashtra and in 2008; organization launched the Nano, world’s cheapest car. Along with launching the world’s cheapest car, Tata Motors acquired the English car maker Jaguar Land Rover, the manufacturer of the Jaguar and Land Rover cars from Ford Motors. With this acquisition, organization has made their position stronger in the global automotive industry (Tata Motors, 2018). Tata Motors ranked 19th in the global automotive industry and it is considered as the leader in terms of producing commercial vehicles.
These are the most crucial segment for every organization as these strategies not only help the company to enhance their brand image but it also helps the organizations to approach to its target audience along with spreading awareness with the objective of enhancing organizational performance (Ryan, 2016). Tata Nano is a city compact car and its major target market segment is lower middle and middle class consumers.
|
Segmentation Type |
Segmentation Criteria |
Target Customer Segment |
|
Geographic |
Region |
Tata Nano is available in India |
|
Density |
Urban and rural areas (Utkarsh, 2015). |
|
|
Demographic |
Age |
Above 18 years |
|
Gender |
Male & Female |
|
|
Life Cycle Stage |
Lifetime. |
|
|
Occupation |
Business professionals, Students and all other customer segments especially middle and lower middle class consumer segment. |
|
|
Behavioural |
Loyalty |
High brand loyalty for Tata Motors due to which demand for Tata Nano could easily be enhanced (Ottman, 2017). |
|
Psychographic |
Social class, lifestyle |
Middle class and lower middle class people. |
Indian market is considered as one of the largest consumer segments across the globe and the competition in the Indian automotive market is also very intense due to large number of companies present in the market. Amongst the whole consumer segment, major consumer segment in the Indian market falls under the middle class and lower middle class income group. Due to this, demand for budget cars is very high in comparison to the luxurious and high priced cars (Pappas, 2016). Tata Motors launched Nano in 2008 with the objective of targeting the large part of the consumer segments in the Indian market and initially, organization decided to launch this compact car at only ? 1 lakh or US$2500. But due to certain challenges such as relocation of the factory from Singur, safety issues and the complaints regarding low quality products used in the car led to decrease the sale volume of the Nano which ultimately affected the success of organizational dream project.
In order to re-position the brand image in the target market, organization has made appropriate changes in Nano with the objective of making it appropriate and relevant for the target audience. Apart from this, Tata’s brand image and their brand loyalty will also play vital role in terms of making setting up trust amongst the target audience for their brand new car Nano. Re-positioning of the Nano will help the organization to attain its desired goals and additionally, organization will focus over creating positive impact over their target and potential customers through trending advertisement and promotional strategies (Bauman, McFadden & Jablonski, 2018).
Marketing mix is one of the great measure for enhancing the demand, sales and revenues for a particular product. In relation to this scenario, marketing mix will be implemented in order to enhance the demand and sales for the Tata Nano with the objective of strengthening the position of the organization in the budget car segment (Khan, 2014).
Tata Nano was launched in 2008 as an inexpensive rear-engined hatchback intended to appeal to the current riders of scooters and motorcycles as it was launched at the cheapest price of ? 1 lakh or US$2500. Tata Motors projected 250,000 units at its launch but the actual units sold in 2016-17 were just 7591. With regards to this, organizational Chairman Cyrus Mistry confirmed that the project lost money for Tata Motors. In 2017, organization decided to continue its manufacturing due to emotional commitment to the project but consistently poor demand led to the shut down the further production of Nano and in 2018, Cyrus Mistry officially announced that it was a failed project and the production for the same ended in May, 2018 (Bhasin, 2018).
Although, the Nano was a unique project due to its price and the major objective behind introduction of Nano was targeting middle class consumer segment but its consistent failures led to the shutdown of the project. Thus, it is recommended to the organization to re-launch the Nano with the adaptation of product differentiation strategy in order to make it attractive for the target customer segment. Apart from this, organization could also launch it with the objective of targeting other consumer segments by enhancing the quality of the material used in the manufacturing of car as well as to re-establish the brand positioning of Tata Nano (Rowley, 2016).
The price strategy adapted for the Nano was the major attraction for this project and the idea behind launching cheapest car of the world was to target riders of scooters and motorcycles. Organization adopted cost leadership and fair pricing strategy to launch Nano but due to challenges like relocation of the factory from Singur led to the increase in the initial set price of the car. In order to keep the lowest price of the car, organization removed various non-essential features such as passenger’s side wing mirror, not having air conditioning, having only three lug nuts per wheel, having only one wiper blade and removal of the fuel filler cap from the fuel tank (Fine, 2017). The introduction of Nano grabs much attention from the media and their target audience due to its lowest price.
As the car did not stands on the company’s expectations and after making certain attempts to make it successful and to generate demand for the product in the Indian market, it is recommended to the organization to re-launch the car with batter fitted engine in order to make it environment friendly. Pollution is the major concern for every country and the transportation mediums are the biggest contributors for enhancing the level of pollution day-by-day, thus, the battery fitted engine would help the organization to establish an effective brand positioning for Tata Nano amongst the target audience.
Initially, Tata Motors launched Nano in the Indian market as it is the largest consumer market across the globe and the primary target audience for Nano was scooters and motorcycles riders. Although, organization planned to expand the market of Nano in the international markets but after attaining positive response from the primary target market but due to several failure attempts, the project was limited to the Indian market only (De Mooij, 2018).
It is recommended to the Tata Motors to launch Nano in other countries across the globe where individual disposable income of the people is low such as Bangladesh, Nepal, and other poor Asian countries. This could help the organization to attain its desired goals along with setting off the losses incurred in the Indian market.
Tata Motors did not compromise with the promotion and advertisement of Tata Nano. All possible measures were adopted along with contracting with the famous celebrities as the brand ambassador of Nano in order to create positive impact over the target audience. Along with this, organization also used trending mediums of advertisement such as social media platforms and other digital media mix.
In the re-launch of the Nano, it is recommended to the organization to make it bit more attractive by adding unique features along with making it as per the requirements and demands of millennials. This is another big consumer segment in the Indian market and in order to target this consumer segment, use of digital media mix will be the most effective option (Armstrong, Adam, Denize & Kotler, 2014).
Tata Motors and its chairman always owe its success to the highly talented and motivated staff. Idea of Nano was of the top management but it was the people in the organization who actually made the plans into reality. The recruitment division of the organization pick candidate from premier universities, engineering and management institutes in India with the objective of appreciating talent available in India along with the objective of enhancing the performance of the organization.
In order to make the sufficient utilisation of the available human resources, it is recommended to the organization to adopt rigorous training and development programs to hone their staff members’ entrepreneurial skills along with imparting the broad product knowledge with the intention of accomplish the goals (Wirtz & Lovelock, 2016).
Tata Motors has adopted Balance Scorecard technique with the objective of evaluating the performance of the organization as a whole as well as to analyse the performance at individual level. With regards to this, organization could easily be able to manage its performance along with the objective of attaining excellence in the overall organizational performance.
It is recommended to the organization to adopt quality measures for maintaining the quality of the materials used in the production of automotive vehicles and its products along with adaptation of training and development techniques to improve staff’s performance.
Tata Motors announces the launch of Tata Nano in 2008 and the major attraction of the car was its price and due to high brand value in the Indian market, company received 203,000 bookings with fully paid and amongst them 70% of the applicants were ready to wait till the end of 2010 to get the car on road.
With the help of huge brand value, organization could re-launch the project in order to enhance organizational performance along with the objective of setting off the losses incurred while initial launch of the car (Baker, 2014).
Conclusion
From the aforesaid information, it can be concluded that the organization is one of the largest and most reliable automotive brand in the global market. Company has acquired various big automotive brands like Jaguar and Land Rover and with the help of these brands; organization could have been able to mark itself with the luxurious car brands like Mercedes-Benz, Volvo, BMW, Audi, etc. Organization also tried to set up its position in the budgeted car market in the India with the launch of Tata Nano. Due to several fail attempts, organizational chairman Cyrus Mistry announces the shutdown of the project in May 2018. This report has concluded marketing plan to re-launch the cheapest car in the global automotive industry with the objective of enhancing its market share and brand value.
References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.
Baker, M. J. (2014). Marketing strategy and management. Macmillan International Higher Education.
Bauman, A., McFadden, D. T., & Jablonski, B. B. (2018). The financial performance implications of differential marketing strategies: exploring farms that pursue local markets as a core competitive advantage. Agricultural and Resource Economics Review, 1-28.
Bhasin, H. (2018). Marketing mix of Tata Nano – Tata Nano marketing mix. Retrieved from: https://www.marketing91.com/marketing-mix-tata-nano/
De Mooij, M. (2018). Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited.
Fine, S. H. (2017). Introduction to social marketing. In Marketing the Public Sector (pp. 1-12). Routledge.
Khan, M. T. (2014). The concept of’marketing mix’and its elements (a conceptual review paper). International journal of information, business and management, 6(2), 95.
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge.
Pappas, N. (2016). Marketing strategies, perceived risks, and consumer trust in online buying behaviour. Journal of Retailing and Consumer Services, 29, 92-103.
Rowley, J. (2016). Information marketing. Routledge.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. Kogan Page Publishers.
Tata Motors. (2018). The Newest Compact Hatch in Town. Retrieved from: https://nano.tatamotors.com/
Thakkar, K. & Shyam, A. (2018). Tata Motor crosses 1-million sales mark in FY18. Retrieved from: https://economictimes.indiatimes.com/industry/auto/auto-news/tata-motors-crosses-1-million-sales-mark-in-fy18/articleshow/63753539.cms
Utkarsh. K. (2015). Tata Nano & Car Industry. Retrieved from: https://www.linkedin.com/pulse/analysis-marketing-strategy-tata-nano-kumar-utkarsh
Wirtz, J., & Lovelock, C. (2016). Services Marketing: People, Technology. World Scientific Publishing Company.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download