Tata Nano

The Peoples Car

By: Lial B, Christina C, Alyson D and Stephanie V

Agenda
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Company Goals Marketing Mix SWOT Analysis Competition Pricing Consumer Profile External Marketing Factors Promotion Strategy Time Line

Company Goals
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Brand Image
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Overall safety and reliability

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When Tata expands to Canada, they want to have an overall good brand image in order for consumers to want to buy the Nano Tata wants to prove to be a reliable car and meet necessary safety standards The Nano reduces fuel economy, and is said to meet the fuel efficiency of domestic and European emission standards. The Nano would be priced at $2,500 US, which is ultra cheap compared to the prices of other cars in the market This would able thousands of consumers to be able to obtain car ownership. Consumers could include low income families or students.
Stephanie

Environmentally Friendly
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Affordable
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Company Goals
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Revolutionize the Industry

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A goal is to revolutionize the auto industry which may force other manufacturers to lower their prices to reach that of the Nano. The company is also hoping it will become the basis for cheap car models in developing markets around the world.

Stephanie

The Marketing Mix

Product
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Perception of car z small car (compact but with big interior), drives like a big car. z uniquely shaped car Personal Perceptions z unique car z big potential z practical and affordable Vehicle Features z Highlights, safety features, engine type

http://tatanano.inservices.tatamotors.com/tatamotors/index.php?option=com_whynano&ta sk=experience&Itemid=303 Lial

The Marketing Mix

Price
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Starting price in India: z Rs. 100,000 (approx. $2,000 US, approx. $2,997,20 Can) Goal Price: $5,800 Can

Place
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Manufactured in India Sold through dealerships or internet Alliance created with Nissan z Sold at Nissan dealerships z Good Strategic Alliance due to its costumer loyalty, establishment in North America, etc.
Lial

The Marketing Mix

Promotion
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Create Hype about the product Advertise the features of the car
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the compact yet spacious size, going for winding roads

Advertise the benefits of low cost, yet high quality.

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Allow consumers to be aware that quality of car is high, however cost is low

Lial

SWOT Analysis
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Strengths
price is low compact size big interior for its smaller size maximum interior space due to location of engine (rear) smooth drives, good for winding and narrow roads fuel-efficient

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Weaknesses
lack of features in comparison to competition safety regulations may not be met
Christina

SWOT Analysis
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Opportunities
strategic alliance to expand consumer base and create more product awareness use promotion techniques to specifically target the desired consumer

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Threats
competition both direct and indirect lack of meeting safety requirements

Christina

Competition
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MERCEDES (Smart) Smart Fortwo Coup { Starting at $14 990 HONDA Fit { Starting at $14 480 BMW Mini Cooper { Starting at $19 500 HYUNDAI Accent { Starting at $13 599 MAZDA Mazda 3 { Starting at $15 999 CHEVROLET Cobalt { Starting at $15 710 DODGE Hornet { Unknown (intro in 2010)
Alyson

Competition
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VOLKSWAGEN { Starting at TOYOTA { Starting at TOYOTA { Starting at KIA { Starting at SUBARU { Starting at FORD { Starting at

Jetta $17 605 Yaris Hatchback $14 750 Matrix $16 665 Fort Koup $18 495 Impreza $20 995 Fiesta $12 999

Alyson

Positioning Map
Compact Size, High Cost

HighCost
Impreza MiniCooper

Relatively High Cost, Large Size

Matrix Kia Forte Dodge Hornet Jetta

Micro-Compact, Reasonable Price

Smart Fortwo

Reasonable Cost, Mid-Size

Mazda3 Cobalt

Compact Size

a
Micro-Compact, Extraordinary Low Price

HondaFit

Reasonable Cost, Large Size Large

Yaris

Size

Hyundai Accent Low FordFiesta

Cost, Mid-Size

Tata Nano

LowCost
Alyson

Pricing

PRICING { Starting price in India:

Rs. 100, 00 (approx. $2 160 CDN.) { Rs. 172, 000 (approx $2 800 CDN.) for LX Model
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Alyson

Pricing
FEATURES NEEDED: { Mirror on right side of car { Radio/mP3 and speaker system { Antenna { Modern airbag system { 12 V power outlet { Digital instrumentation (clock, notifications, etc.) { Cruise control _____________
(Additions) + Original Cost = TOTAL COST (CDN)
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= = = = = = =

$ $ $ $ $ $ $

500.00 500.00 250.00 1000.00 250.00 250.00 250.00

$ 3000.00

$3000 + $2800 =

$5800.00
Alyson

Pricing Strategy
New motor vehicle sales
2005 2006 2007 2008 2009 seasonally unadjusted vehicles New motor vehicles Passenger cars North America Overseas Commerci al vehicles North America Overseas 1,630,31 0 845,222 574,639 270,583 785,088 673,205 111,883 1,666,32 7 863,161 573,102 290,059 803,166 681,244 121,922 1,690,53 8 859,003 551,001 308,002 831,535 727,909 103,626 1,674,14 5 894,506 557,422 337,084 779,639 667,139 112,500 1,484,85 6 747,671 426,709 320,962 737,185 639,306 97,879

Source: Statistics Canada, CANSIM, table (for fee) 079-0003 and Catalogue no 63-007-X. Last modified: 2010-04-19.

This table and graph show the new motor vehicle sales in Canada. There are 747,671 new passenger cars, and the Tata Nano should expect to take up 2-3% of this total market, being a very new car and targeting a completely different segment and target audience.

Stephanie

Pricing Strategy
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The price strategy that would be used is penetration pricing The Nano right now is already set at an artificially low price in comparison to other cars in the Canadian market This is needed in order for it to gain a respectable part of the market share, and then the price could be increased The price increase will have to only be a minimal general increase so it still targets the consumer as an ultra subcompact affordable car

Stephanie

Consumer Demographics
Persons in low income before tax (In percent, 2003 to 2007)
2003 2004 2005 prevalence1 in % All persons Under 18 years of age 18 to 64 65 and over Males Under 18 years of age 18 to 64 65 and over Females Under 18 years of age 18 to 64 65 and over 16.0 18.0 15.5 15.2 14.8 18.0 14.5 10.2 17.2 18.0 16.6 19.2 15.8 17.9 15.4 14.1 14.7 18.1 14.4 9.4 16.9 17.8 16.4 17.9 15.3 16.9 14.9 14.5 14.4 17.5 14.2 9.4 16.2 16.3 15.7 18.7 14.5 15.9 14.3 12.9 13.5 15.7 13.6 8.3 15.5 16.1 15.1 16.6 13.6 15.0 13.4 12.5 12.9 15.6 12.7 8.5 14.3 14.3 14.0 15.8 2006 2007

Christina

Consumer Demographics
Focus on the red and green lines. Red other fees aside from tuition, per student Green other fees aside from tuition, per student [projected]
2008 data

Christina

Consumer Profile
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Target Market

middle to low income families can afford this without going over their budget or creating a debt for themselves post-secondary students can afford this car without increasing their debt from tuition good for driving around campus because of its compact size and good for going through winding, small roads - get students from point A to point B
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Christina

Consumer Profile
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Target Market

newlyweds theres no immediate need for a family car help them through their financial transitions (buying a new house, etc) singles no need for a large car get them to and from work get them through traffic in heavy populated areas (downtown)
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Christina

Consumer Profile
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Basic Needs and Wants

Needs basic car to get them around from point A to point B basic features to make the ride enjoyable, yet no need for luxury Wants lost price and low cost to maintain fuel-efficient have an environmental conscience to better their own conscience
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Christina

Consumer Profile
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Buying Process

Need Recognition gas prices are too high or tuition is too high previous car broke down and needs to be replaced
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Information Search look to the Tata Nano website for further information word of mouth heavy advertising techniques (print ads in all magazines, outdoor ads, TV ads, radio ads, etc) promotion by several dealerships carrying the Tata Nano
Christina

Consumer Profile
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Buying Process

Evaluation of Alternatives ensure potential buyers that the Tata Nano will accommodate for all their needs and wants use heavy advertising techniques and different promotions Purchase the customer purchases the Tata Nano
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Christina

Consumer Profile
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Buying Process

Post-Purchase Behavior conduct surveys to see customer satisfaction keep track of the number of times customers come in for check ups *Customers could be offered a five year warranty plan, 0% financing or one year gas payment must be generous. This would be targeted toward the target market in the information search and evaluation of alternative process steps.

Christina

Outside Factors and Marketing Environment

Current real economic condition as they relate to vehicle sales.

Current Economy of Canada:

GDP (PC): $38,400 Unemployment Rate: 8.5% - this is 96th in the world Population below Poverty Line: 10.8%

Current Economy of India:

GDP (PC): $3,100 Unemployment Rate: 10.7% - this is 164th in the world Population below Poverty line: 25%

Lial

Outside Factors and Marketing Environment

Relation to Vehicle Sales:

GDP per capita - Canada is at an extremely high standard of living in comparison to India.
o

Tata Nano might have the problem for the lack of interest for purchase. o The Canadian economic conditions are one of the worlds highest and strongest, the population is mostly of interest to high quality and most suitable cars, ones that most comfortably suite their way of life.

Lial

Outside Factors and Marketing Environment

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A car like the TATA at a low cost can provide these people, that are unemployed or have family members that are unemployed, transportation. In comparing the two countries, India has a 10% greater percent of people under the poverty line. TATA would be more popular in India then in Canada

Lial

Outside Factors and Marketing Environment

Product Life Cycle

Lial

Outside Factors and Marketing Environment

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Product Life Cycle

TATA Nano is will enter the Canadian car in its introductory stage.
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Although the Tata will be in its introductory stage is will almost directly hit the competition This will come into Canada with no past presence. It new, its unknown and should evolve starting at the top, not work its way up.

Lial

Promotion Techniques

Look at the life of the Nano so far and make a final decision Geared toward keeping the Nano in consumers views and minds its all they should talk about Geared toward fighting competition while trying to innovate the product

Geared toward product awareness emphasize the newness and benefits

Christina

Promotion Techniques
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create hype

make consumers excited to see this product before it even enters the Canadian market

advertise the compact, yet spacious shape and size of the car

attract post-secondary students looking for a comfortable car to take them around campus singles working in a populated, heavy traffic area looking for a enjoyable car that can maneuver through occupied streets

Christina

Promotion Techniques
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advertise the low price of the car

attract those lower income families who just need a car to fit their basic need attract post-secondary students looking to reduce possible debt or loans
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Where and how will the Tata Nano be sold?

sold directly through dealerships or through the internet advertised and available through product and company websites, TV and radio commercials, magazine and outdoor ads, flyers in the mail, etc.
Christina

Push vs. Pull Strategies

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Pull Strategy
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Tata Nano will first start off with a pull strategy in order for Tata as well as Nissan to get an idea of the interest for this new car being introduced in the Canadian market customers will have to request the car through Nissan dealerships in Canada ensures the amount of demand occurring and give Tata an idea of how much to supply in order to avoid an excess of supply good way to start off the Nano because of the high uncertainty in demand with the target audience

Stephanie

Push vs. Pull Strategies

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Push Strategy
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After gaining a more certain demand from consumers, they will begin the push strategy, in the middle of the growth stage With the hopefully growing popularity of this car, the push strategy will ensure that everyone who wants a Nano will be able to get one where they want and when they want important in keeping customers happy and not having to wait for their car because Nano is not a luxury car that is known as rare like some models of Mercedes or Porsche are want customers to know that this ultra compact car is ready when they are
Stephanie

Centralized vs. Decentralized

1. Centralized
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As Tata Motors has a strong backing and establishment in India, the company would rely on this strength to produce the automobiles in a CENTRALIZED market { A centralized market produces all its products in one central location, thinking locally, and acting globally { A form of brand building This would allow the company to utilize its production facilities in India while growing in the North American market { Rather than investing in new production facilities before having a strong base

Alyson

Centralized vs. Decentralized

2. Decentralized
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It would be a very intelligent investment to change to a DECENTRALIZED marketing strategy after gaining a North American loyalty { Using local (North American) facilities, distribution centres, agencies, etc to target international markets, thinking globally, and acting locally. This process would be advantageous to: { Significantly cut down shipping and transportation costs { Further establish the companys presence in the North American market

Alyson

Advertising Ideas
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Commercial Storyboards
it is important to target specific markets through our commercials POST SECONDARY STUDENTS
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clips of students walking past a car dealership and look longing at the cars, until their face comes across the price; their face is shocked and sad, almost depressed next, a student wearing shades, very cool looking is driving a Tata Nano down the street sad students follow the car and look back at the car dealership and thats when they see the Nano on a pedestal; zooms on the price voice over: you dont just have to wish for a car like the Nano, just go for it!

*give students the impression that its a cool car, its something desirable and its affordable
Christina

Advertising Ideas
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LOWER INCOME FAMILIES

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Commercial Storyboards
dad is driving home from work with a huge bag in his hands while driving, narrator is talking: "What can a slick, smooth car turning through winding roads and the smallest paths and gliding through the sun..."(dad turns into driveway)... do?" narrator says "everything, from the little most important things on the road....to what means the most" narrator" how do you spend your money?" "how about low?" as dad comes and hugs kids and kisses wife with big present at hand... narrator says "what matters to you...where are you going to spend your money?" narrator "It's what matters most...get what you want

z z z

*give families the impression that its affordable because money is meant to be spent on more important things in life

Lial

Advertising Ideas
Print Ad 1

Move over, bicycles...

Alyson

Advertising Ideas
Print Ad 2

THE TATA NANO:

The decision is practically made for you.

Alyson

Strategic Alliance: Nissan Motors Canada

Qualities needed in the parent company:
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Strong customer loyalty basis z Nissans popularity and success signify its strong customer loyalty basis Established in North American market z Expanded internationally in 1959, giving it an advantage in its knowledge in the market versus newer unaware companies Already existing associations with daughter models z The success of Infiniti as a luxury spinoff industry means Nissan is established enough to handle another name and model associated with it

Stephanie

Strategic Alliance: Nissan Motors Canada

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Safety and reliability z According to Consumer Reports Canada, after testing all brands of vehicles, 77% of Nissan and Infiniti vehicles were recommended to the consumer based on safety and reliability standards z In 2008, Infinity was rated one of the three most reliable cars in Canada High quality with reasonable price z Nissan continues to have a good reliability and high quality image without the high prices that vehicles such as BMW, Mercedes, and Porsche have No recent events that would deter market z Ex. Toyotas recent downfall in the automotive industry due to safety issues
Stephanie

Strategic Alliance: Nissan Motors Canada

Reasons for Nissans interest in Tata and the Nano being a part of their name and company is important to consider: { Missing area in the market z Nissan currently does not have any models found within the sub or micro compact sectors of the auto market z A cheaper option in the company could be beneficial for opening up markets { Gather in a new target customer z Currently, Nissan is not a company of interest for students or individuals looking for a low-cost, fuel efficient vehicle { Will not compete with existing models z With no Nissan or Infinity model coming even close to comparison with the Tata Nano, there would be no inter-company competition or conflict between a Nissan and Tata vehicle Alyson

Strategic Alliance: Nissan Motors Canada

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Willingness z The fact that Nissan has already agreed to opening an alliance with Infinity signifies that they are accepting to association with different, foreign models z Forming an alliance with Tata would be a big risk, but it is one that they have taken before with a great outcome of success Environmental Contribution z Currently, the Nissan and Infiniti brands have a poor fuel economy; therefore, they could see the highly efficient fuel usage of the Tata Nano as a way to gain a more positive environmental spin
Alyson

Timeline for Success

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2010- Tata Nano will be first introduced to the North American market under the Nissan/Infiniti name will be advertised first at Auto Shows in Canada in order for the consumer to be familiar with it before it becomes open to buy in the market and then anticipate its launch great deal of advertising (such as print ads and information booklets or brochures) will be needed nationwide to boost the image of the Nano 2011- Tata will begin its launch into the market and will be first sold at limited Nissan dealerships Nissan will want to ensure that with the first one hundred purchases by consumers, that the Nano will meet their expectations of being a safe and reliable car
Stephanie

Timeline for Success

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2012- With all hopes that the Tata Nano has performed well with customers and has developed a good brand image for itself and Nissan, it will start the growth stage it will be expanding itself to a wider selection of dealerships throughout Canada and more cars will be manufactured to ensure that any customer can have one 2013/2014- Nano will have reached its maturity stage where many customers will already be familiar with this car when maturity starts to kick in, the company will start to think of what is next for Tata or what we could do to make the Nano different and better; a new version of the Nano or a different Tata car will be start to be advertised now

Stephanie

Timeline for Success

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2015/2016- The Nano that was originally marketed will have hit the decline stage which means that there will not be as many consumers buying it, and manufacturing will have slowed new version of the Nano or a new Tata vehicle will have already been in the advertising stage, and will be introduced at this point This timeline would then again be followed, with a different aspect and approach to a new marketing plan to achieve a higher level of success

Stephanie

Thank You
Tata Nano
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The Peoples Car