Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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

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 Marketing Mix Tata Nano

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

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 Marketing Mix Tata Nano

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.

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 Marketing Mix Tata Nano

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

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 Marketing Mix Tata Nano

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

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 Marketing Mix Tata Nano

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

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