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Why Mexico? ,[object Object],Now we can...,[object Object],offer a “peoples car” to Mexico,[object Object],manufacture a car at a 10% profit margin,[object Object], generate revenues of $185 million in new market,[object Object],generate additional net profits of $18.5 million per annum,[object Object],position ourselves strongly for expansion in the Americas,[object Object]
Cecile Wong, Sasha Oness, and Myrosha Daley,[object Object]
Overview,[object Object],Mexico: The Target Market,[object Object],Environmental Analysis,[object Object],Entry Mode and Rationale ,[object Object],Marketing Mix,[object Object],Summary,[object Object]
Mexico,[object Object],Democracy since 1997,[object Object],Pop.  109 million,[object Object],GDP of $1,559 trillion,[object Object],GDP per capita $14,200,[object Object],Trade Agreements,[object Object],NAFTA,[object Object],EU,[object Object]
Target Market,[object Object],Middle Class Families,[object Object],Dual income with kids,[object Object],10 million,[object Object],Booming Middle Class,[object Object],Rising Wages,[object Object],Growing Purchasing Power,[object Object],Growing GDP per capita,[object Object],Peso on the rise,[object Object]
Environmental Analysis,[object Object],Economical,[object Object],Stability ,[object Object],Sound economic policy,[object Object],Competition,[object Object],Many players,[object Object],Slow growing market,[object Object],Political,[object Object],Democratic Government,[object Object],Many FTA’s,[object Object],Labour,[object Object],Skilled ,[object Object],Cost efficient,[object Object]
Porters Five Forces Analysis,[object Object]
Competition,[object Object],ChevDesde 93,823 pesos*,[object Object],Toyota Yaris 151,100 pesos,[object Object],Ford Fiesta 123,000 pesos,[object Object],VW Pointer 92,060 pesos,[object Object],Nissan Aprio 101,700 pesos,[object Object],*All prices listed at Mexican market list price. ,[object Object],All models listed are base models. Manual transmission and no A/C,[object Object]
Entry Mode ,[object Object],Internal and External Factors,[object Object],Hierarchal Mode,[object Object],Sales and Production Subsidiaries: Host,[object Object],R & D: Home ,[object Object],Marketing: Host ,[object Object],Risks & Benefits,[object Object],The Future,[object Object]
Marketing Mix: Distribution,[object Object],Unique model: JIT,[object Object],Trial & Order Centres,[object Object],Intensive Market Coverage,[object Object],Reduced inventory costs,[object Object],preserves our competitive,[object Object],advantage!,[object Object],Low Price!,[object Object]
Marketing Mix: Promotion,[object Object],Sales Promotion,[object Object],“Tata Lana”,[object Object],Advertising,[object Object],Strong Family Values,[object Object],Passion for Soccer,[object Object],Out Of Home,[object Object],Billboard,[object Object],Direct,[object Object],Megaphone vehicles,[object Object]
Marketing Mix,[object Object],Product,[object Object],Tata Poco,[object Object],Adaptation,[object Object],Price,[object Object],Combination Strategy,[object Object],Penetration/Low Cost,[object Object],49,900 Pesos,[object Object]
Summary,[object Object],Attractive Market,[object Object],Strong Competitive Advantage,[object Object],Good Profit Potential,[object Object],Future Growth,[object Object],Unique Distribution Model,[object Object],Future International Expansion,[object Object],USA,[object Object],South America,[object Object]
Market and Forecast,[object Object],Current Market = 1 million vehicles ,[object Object],Forecasted to drop to 700,000 (WSJ),[object Object],Our target,[object Object],Yr 1: 25,000 cars, Yr 2: 40,000 cars, Yr 3: 50,000 cars (or 5% market share),[object Object],Currently sold in India for 28,268 pesos(equiv),[object Object],If we manufacture for 44,910 pesos,[object Object],50,000 @ 49,900 pesos = 2495 million pesos,[object Object],Or 185 million US dollars @ 10% profit margin,[object Object],$18.5 million in profits,[object Object]

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Tata Poco

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Editor's Notes

  1. In India the campaign is Now you can. Now you safe transport, affordable. We chose to follow the You can theme with a We can them. Note $$$ will change for monday
  2. After researching the word Nano in Spanish. We have decided to rename the car the Poco “little”