Warren final assignment(international market planning).niraj kumar
1. NAME: NIRAJ KUMAR
STUDENT NO: 11229617
ASSIGNMENT TITLE: INTERNATIONAL MARKETING PLANNING FOR
TATA NANO ENTER IN CHINA
MODULE CODE: MKT9104
CO-ORDINATOR: WARREN GLOVER
DATE OF SUBMITTION: 19TH
,DECEMBER, 2011
2. 2
INTRODUCTION
People Say ―Love has no national and International boundaries‖ and I believe
companies are on the same track.
In this assignment we will see when a company expands there market
from their home country to totally different market (country or continent) which
may be different in every aspect, what do they plan? How do they plan? What
do they do? How do they do it? And we call it International marketing planning.
In the following we are going to launching Tata Nano to China. The first
phase of the international marketing plan will deal with introduction of the
organization deep study of the chosen market and its suitability for growth
opportunity. The second phase will discuss various strategic development
opportunities and market strategies for the product including the recommended
mode of market entry. The third phase will focus on the various aspects of the
extended marketing operations including reference to product, pricing,
distribution, communication and services dimensions. In the final phase author
will raise critical points and views.
3. 3
The Analysis
Marketing Theory
Marketing is the process which creates communicates delivers the value to the
customer and maintain the relationship with customers. It generates the strategy
that underlies sales techniques, business communication, and business
developments. It is an integrated process through which companies build
strong customer relationships and create value for their customers and for
themselves.
Marketing evolved to meet the stasis in developing new markets caused
by mature markets and overcapacities in the last 2-3 centuries.
The adoption of
marketing strategies requires businesses to shift their focus from production to
the perceived needs and wants of their customers as the means of
staying profitable.
The term marketing concepts holds that achieving organizational goals depends
on knowing the needs and wants of target markets and delivering the desired
satisfactions. It proposes that in order to satisfy its organizational objectives, an
organization should anticipate the needs and wants of consumers and satisfy
these more effectively than competitors.
When marketing their products firms need to create a successful mix of:
the right product
sold at the right price
in the right place
Using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following
conditions:
The product has to have the right features - for example, it must
look good and work well.
The price must be right. Consumer will need to buy in large
numbers to produce a healthy profit.
The goods must be in the right place at the right time. Making
sure that the goods arrive when and where they are wanted is an
important operation.
The target group needs to be made aware of the existence and
availability of the product through promotion. Successful
promotion helps a firm to spread costs over a larger output.
4. 4
About Tata Nano:
―Dream-dream and dream, because dream gives vision, vision gives thoughts
and finally thoughts lead to the action". Each letter of these motivational words
said by India‘s former President Dr. A.P.J. Abdul Kalam goes exactly with Mr.
Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing
a safe, affordable Car for the common man. Finally after the wait of five years,
crossing all financial and technological barriers, Ratan Tata kept his promise
and unveiled Tata Nano on 10th January 2007, at the 9th Auto Expo 2008 in
New Delhi. Tata Nano, cool & smart, launched by Tata Motors is worlds
cheapest Car with a price tag of $ 2500The Making of Tata Nano Ratan Tata
rolls the window down and talks about the vision and conviction, the innovation
and improvisation, and the leap of faith that went into creating the Peoples Car.
The launch of the Peoples Car by Tata Motors is a defining moment in the
history of India‘s automotive industry.
Tata Nano is the cheapest car in the world. It is sold in home country
India around Rs 1-lakh, approximately GBP 1700. It is manufactured by Tata
Motor Limited, the largest automobile company in India. The project to create
the world's cheapest car inspired by the number of Indian families with two-
wheeled rather than four-wheeled transport. Mr. Ratan Tata makes this dream
car for low income categories people and those segments of people who can
easily afford to make their dream true to buy a car
Founder: Mr Ratan Naval Tata
(It‘s their dream project to make world cheapest car INR 1-Lakh, approximately
GBP: 1700, 15000 Yen)
Factory:
Tata Motors announced in 2006that the Nano would be manufactured
in Singur, West Bengal, helped in part by a forced acquisition and reuse of
farmland by the West Bengal state government to entice Tata to build
their Local farmers soon began protesting the forced acquisition of their land for
the new factory. As the protests continued through 2007 and 2008, Tata first
delayed the Nano launch and later decided to build the car in a different state
(Gujarat) instead.
5. 5
TATA NANO PRODUCT:
The project builds the Nano started in 2003, Mr.Girishwagh was selected as the
leader of the 500 member‘s team which was chosen to develop the Nano right
from the beginning, the team members were asked to be as frugal as possible to
maintain the low price target of the car. Tata Nano was first launched in India
on 1st April 2009 and expected to be in Indian market by July 2009. Since
launching, it has created a huge buzz all over India. Within the first two days of
lunching, it has received 5500booking. The figures keep increasing every day
since the launching. Basically, by making things smaller, lighter, do away with
superficial parts and change the materials wherever possible without
compromising the safety and environmental compliance.
6. 6
SWOT Analysis of Tata Nano
SWOT analysis investigates the China political, economic and business
environment. The following findings are adapted from China Auto Report 2009.
However, despite their importance, many companies often only have vague
ideas of their competitive strengths and weaknesses, opportunities and threats.
In this paper, the development of a knowledge-based system is described that
can assist managers of small and medium sized companies in performing a
SWOT-analysis. For our research purposes, we concentrated only on the
identification of internal strengths and weaknesses
SWOT analysis is a method for analysing a business, its resources, and its
environment.
7. 7
Strength:
During the past four decades, China has transformed itself from a commodities-
dependent backwater into a major world source for electronics and computer
parts. China is the world‘s largest producer of new electronics devices,
automobiles, technologies and all latest gadgets at cheaper rates. All this
provides a solid platform for economic growth.
Standards of corporate governance in China have greatly improved since
the Asian financial crisis at the end of the 1990s – more so, in fact, than in many
neighbouring countries. Foreign companies, or at least foreign manufacturing
companies, looking to do business in China will continue to be welcomed with
open arms, with the government offering lavish tax breaks and concessions.
The internationalisation strategy so far has been to keep local managers in
new acquisitions, and to only transplant a couple of senior managers from India
into the new market. The benefit is that Tata has been able to exchange
expertise. The company has had a successful alliance with Italian mass producer
Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in
terms of production and knowledge exchange. For example, the Fiat Palio Style
was launched by Tata in 2007, and the companies have an agreement to build a
pick-up targeted at Central and South America.
Weakness:
The Chinese half of the population holds a constitutionally enshrined special
position in society, amounting to positive discrimination in not only jobs, but
also wealth. China‘s new five-year plan will have important implications for the
global economy. Its key feature is to shift official policy from maximizing GDP
growth toward raising consumption and average workers‘ standard of living.
Despite China‘s successful economic rise to date and the many strong domestic
and international supports for continued fast growth for decades to come,
numerous weaknesses and potential weaknesses challenge China‘s
policymakers. Economic statistics themselves continue to represent a weakness
in the management of China‘s economic rise. Instead of using seasonally
adjusted data, rates of change—such as output, trade, inflation and money
aggregates—still rely too heavily upon year-on-year measures that delay
recognition of major short-term shifts. One of China‘s most serious problems,
corruption, is shared with other developing countries. The two most serious
risks China faces, to its financial system and in its rural areas, are also likely to
find resolution in a combination of ad hoc policies and systemic reforms.
Interest rate liberalization at this point would undermine the affordability of
financing for China‘s infrastructure.
8. 8
Opportunities:
The opportunity for private-sector-led growth will improve as the government
continues divestment of state shareholdings in order to raise funds to narrow the
budget deficit.
The opportunity to invest in China state assets could improve. The government,
if it sticks to its word, will conduct its biggest ever divestment of state
shareholdings. China is eager to compete globally in banking, and although it
currently lacks a domestic champion, with ten main institutions in the market,
bank consolidation is a strong possibility.
In the summer of 2008, Tata Motor's announced that it had successfully
purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3
million. Two of the
World's luxury car brand has been added to its portfolio of brands, and will
undoubtedly off the company the chance to market vehicles in the luxury
segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle
business in 2004 for around USD $16 million. Nano is the cheapest car in the
World - retailing at little more than a motorbike. The new and emerging
industrial nations such as India, South Korea and China will have a thirst for
low-cost passenger and commercial vehicles. These are the opportunities.
However the company has put in place a proactive Corporate Social
Responsibility (CSR) committee to address potential strategies that will make is
operations more sustainable. The range of Super Milo fuel efficient buses are
powered by super-efficient, eco-friendly engines. The bus has optional organic
clutch with booster assist and better air intakes that will reduce fuel
consumption by up to10%.
Threats:
China has a huge population. Moreover people there are advancing each passing
day. China launches new mobiles, technologies, automobiles almost every day.
China‘s automobile industry is much bigger than India‘s. it can therefore serve
quality products at lower cost. China has a string support from the government.
Indian IT industries have negligible support .China launches many products like
gadgets etc every day. Because of this they can sell them at a cheaper rate.
China‘s market cannot be a thread untie India considers and works on each
opportunity that comes its way. It should efficiently make use all possible
resources and infrastructure to welcome foreign investment and manpower
hiring.
9. 9
STRATEGY DEVELOPMENT
Product Information
Tata Nano Technical Specification, Interiors and Exteriors
Tata Nano is available in three variant,
Nano
Nano CS
Nano LX
Nano Technical Specifications
According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24
kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel
economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under
city road conditions, and 3.85 L/100 km on highways (25.97 km/L, 61.1 mpg
(US), 73.3 mpg (UK)). It is the first time a two-cylinder non-opposed petrol
engine will be used in a car with a single balancer shaft. Tata Motors has
reportedly filed multiple patents related to the innovations in the design of
Nano, with power train design alone having 34 patents.
Details Nano
DIMENSIONS
Overall Length 3099 mm
Overall Width 1495 mm (Without ORVMs)
Overall Height 1652 mm
Wheelbase 2230 mm
Ground clearance 180 mm
Minimum Turning Circle Radius 4 m
Seating Capacity 4 persons
Fuel Tank Capacity 15 Litres
Kerb Weight
Nano 600 kg
Nano CX 615 kg
Nano LX 635 kg
Boot Space With rear seat folded: 500 Litres
Without rear seat folded: 80 Litres
10. 10
ENGINE & TRANSMISSION
Engine Type 624 cc, 2 cylinder, MPFI
Maximum Engine Output 38 PS @ 5500 ± 250 rpm
Maximum Torque 51 Nm @ 4000 ± 500 rpm
Maximum Speed 105 Kmph
Gradeability 30%
Transmission
Synchromesh on all forward gears, Sliding mesh on reverse gear
with overdrive on 4th gear
No. of Gears 4 Forward + 1 Reverse
SUSPENSION
Front
Independent, Lower Wishbone, McPherson Strut with gas filled
dampers and anti-roll bar
Rear
Independent, Semi Trailing arm with coil spring & gas filled shock
absorbers
BRAKES
Brake Type
Dual Circuit, Vertical Split operated by tandem master cylinder with
vacuum booster
Front 180 mm diameter Drum Brake
Rear 180 mm diameter Drum Brake
WHEELS & TYRES
Tyre Type Radial & Tubeless
Front Tyre size 135/70 R12
Rear Tyre size 155/65 R12
Spare Tyre size 135/70 R12
Wheels 4 B x 12
11. 11
Features of Tata Nano
Details Nano Nano CX Nano LX
COLOURS
Serene White
Rouge Red
Aqua Blue
Serene White
Rouge Red
Neon Rush
Papaya Orange (M/P)
Meteor Silver (M/P)
Champagne Gold (M/P)
Papaya Orange (M/P)
Sunshine Yellow (M/P)
Champagne Gold (M/P)
Mojito Green (M/P)
Pearl White (M/P)
Meteor Silver (M/P)
M/P- Metallic/ Premium
INTERIOR OF TATA NANO
Seat Upholstery Dual Tone Vinyl Trendy Black Fabric
Premium Beige
Fabric
Door Trim Dual Tone Vinyl
Trendy Black Fabric
& Vinyl
Premium Beige
Fabric & Black Vinyl
Dashboard Medium Graphite Ebony Black Barley Beige
Centre Facia Ebony Black Silver Dust Silver Metallic
Roof Lining Jute Based Polyester Fabric Polyester Fabric
Premium seats - Yes Yes
Rear Parcel Shelf - Yes Yes
A & B Pillar Trims - Yes Yes
Electronic Trip Meter - - Yes
Instrument Cluster Illumination Yes Yes Yes
Fuel Gauge Digital Digital Digital
Steering Wheel 2 Spoke 2 Spoke 3 Spoke
COMFORT & CONVENIENCE
AC - Yes Yes
Heater - Optional Yes
Front Power Windows - - Yes
Cup Holders in Front Console - - Yes
Anti Glare Inside Rear View
Mirror
- - Yes
Gear Shift Console Basic Basic
With provision for
12V socket
Cabin Lamp Yes Yes Yes
Magazine and coin Holder on all - - Yes
12. 12
doors
Map pocket Integral with Driver
&Co driver Seat
Fabric pocket Fabric pocket Separate plastic trim
Front Seat Headrests Yes Yes Yes
Rear Seat Integral Headrests - Yes Yes
Sun visor on Driver &
Passenger side
Yes Yes Yes
Driver Seat with Slider Yes Yes (With Recliner) Yes (With Recliner)
Passenger side Seat with Slider - Yes (With Recliner) Yes (With Recliner)
Front assist grips Yes Yes Yes
Rear assist grips - Yes Yes
Head lamp levelling
Integral feature
through innovative
suspension design
Integral feature
through innovative
suspension design
Integral feature
through innovative
suspension design
Low Fuel Warning Lamp Yes Yes Yes
Rear Seat Folding Yes Yes Yes
SAFETY & SECURITY
Central Locking - - Yes
Centre High Mount Stop Lamp Yes Yes Yes
Laminated Windshield Yes Yes Yes
Door Lock on Driver Side Yes Yes Yes
Door Lock on Passenger Side - - Yes
Booster-assisted Brakes Yes Yes Yes
Front & Rear Seat Belts Yes Yes Yes
Additional Body
Reinforcements
Yes Yes Yes
Intrusion beam
Integral feature
through
innovative door
system design
Integral feature
through innovative
door system design
Integral feature
through innovative
door system design
Radial Tubeless tyres Yes Yes Yes
14. 14
Tata Nano LX
Accessories of Tata Nano
EXTERIOR ACCESSORIES
Rear Bumper Protector Rear Mud Flap Front Mud Flap
Front Bumper Protector Rub Rails Decal Disney Series
15. 15
Body Kit - Front Skirt Body Kit - Rear Skirt Decals Top
Alloy Wheels - Y type Exhaust Tip Type 1 Exhaust Tip Type 2
Body Decals Body Decals
16. 16
INTERIOR ACCESSORIES
Neck Rest Seat Cover - Rear Seat Covers - Front
Dashboard Audio Speaker Audio System Steering Wheel Cover
Windscreen Sub lock -
Disney Series
Window Sun block - Disney
Series
Windscreen Sun block
Remote Central Locking
17. 17
TARGET GROUP:
Overview of China
Since the beginning of its history, China has been a meeting place for a diverse
range of external cultures and religions. As a result of these external influences,
a new unified but distinguished Malay culture has emerged. Contemporary
China represents a unique fusion of Chinese, and Indian traditions, creating a
pluralistic and multi cultural nation that has its character strongly rooted in
social harmony, religion and pride in it ancestral background. With such a rich
cultural heritage, acquiring the relevant skills and cultural knowledge in order to
conduct business in China is crucial to your success. Following years of
confrontation in search of independence, China (Hongkong) was established
in On July 1, 1997. Hong Kong consists of the island of Hong Kong (32 sq mi;
83 sq km), Stonecutters' Island, Kowloon Peninsula, and the New Territories on
the adjoining mainland.
China is a successful example of a democratic Buddhism state. Despite
murmurs of discontent among hard-line Buddhism in some states, multiracial
China is unlikely to abandon moderate Buddhist. During the past four decades,
China has transformed itself from a commodities-dependent backwater into a
major world source for electronics and computer parts. China is the world‘s
largest producer of automobile, electronics goods, and wooden goods and is
also a net exporter of crude oil. All this provides a solid platform for economic
growth. The opportunity for private-sector-led growth will improve as the
government continues divestment of state shareholdings in order to raise funds
to narrow the budget deficit. The Standards of corporate governance in China
have greatly improved since the Asian financial crisis at the end of the 1990s –
more so, in fact, than in many neighbouring countries. Foreign companies, or at
least foreign manufacturing companies, looking to do business in a China will
continue to be welcomed with open arms, with the government offering lavish
tax breaks and concessions.
The opportunity to invest in China state assets could improve. The government,
if it sticks to its word, will conduct its biggest ever divestment of state
shareholdings. China is eager to compete globally in banking, and although it
currently lacks a domestic champion, with ten main institutions in the market,
bank consolidation is a strong possibility.
18. 18
The internationalisation strategy so far has been to keep local managers in new
acquisitions and to only transplant a couple of senior managers from India into
the new market. The benefit is that Tata has been able to exchange expertise.
The company has had a successful alliance with Italian mass producer Fiat since
2006. This has enhanced the product portfolio for Tata and Fiat in terms of
production and knowledge exchange. For example, the Fiat Palio Style was
launched by Tata in 2007, and the companies have an agreement to build a pick-
up targeted at Central and South America.
Nano is the cheapest car in the World - retailing at little more than a
motorbike. The new and emerging industrial nations such as India, South Korea
and China will have a thirst for low-cost passenger and commercial vehicles.
These are the opportunities. However the company has put in place a proactive
Corporate Social Responsibility (CSR) committee to address potential strategies
that will make is operations more sustainable. The range of Super Milo fuel
efficient buses are powered by super-efficient, eco-friendly engines. The bus
has optional organic clutch with booster assist and better air intakes that will
reduce fuel consumption by up to 10%.
Over the last few decades the country has evolved from a successful
producer of raw materials to a multi sector economy. Today, China offers a
unique blend of old traditional culture and new technological innovations. As
the China market continues to develop and prosper, it is becoming increasingly
valuable for those entering into business in China to be aware of the cultural
dimensions that shape the fabric of this country.
EXECUTIVE SUMMARY
Tata Nano is the cheapest car in the world. It is sold in home country India
around Rs 1-lakh i.e. approximately GBP 1700. It is manufactured by Tata
Motor Limited, the largest Automobile Company in India. It‘s Chairman, Mr
Ratan Tata envisions that Tata Nano to become a ―People‘s car‘‘ which is
affordable by almost everybody. Tata Nano was first launched in India On 1st
April 2009 and expected to be in Indian market by July 2009. Since launching,
it has created a huge buzz all over India. Within the first two days of lunching, it
has received 5500 Booking. The figures keep increasing every day since the
launching.
What makes Tata Nano so cheap? Basically, by making things smaller,
lighter, do away with superficial parts and change the materials wherever
possible without compromising the safety and environmental compliance. It is
said that Tata Nano has better millage than Toyota Prius and Same gas emission
19. 19
as a scooter. Tata Nano will be imported to China by Tata Industries in parts. It
will be assembled in its two factories in Beijing and Hongkong distribution
centres or its web site.
There are three types of Tata Nano car will be available in Chinese
market i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot
and mixed weather in China, only Nano CX will be brought to china and will be
sold here. The target market is very wide which includes those with income yen
3000 per month, students, female workers and scooters‘ riders.
Situation Analyse
Tata Motors Limited is India‘s largest automobile company, with revenues of
Rs.35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial
vehicles in each segment, and among the top three in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. The
company is the world‘s fourth largest truck manufacturer, and the world‘s
second largest bus manufacturer. In March 2008, Tata Motors acquired Ford‘s
UK based car brands Jaguar and Land Rover (BBC News, 2008).According to
Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like
Nano has got to do something for the people of India and transport.
Unavailability and poor quality of mass transport is a common problem in India.
In a two wheeler, father driving with elder child standing in front and wife
behind holding a baby is norm in this country. Thus, this is a relatively an
unsafe mode of transporting a family. Thus, with this in mind Tata Nano was
created as a safer form of transport. As one of its objectives is to become an
Indian business conglomerate operating in many countries, Tata Nano will be
introduced in China.
20. 20
Market Summary
It is estimated that china has more than 15 million motorcycles on the road,
compared to over 10 million motorcars(ICE, 2001).The majority of motorcycle
buyers or users does not own a car and belong to the lower and middle-income
group. A significantly larger percentage of motorcycle users in Chinese are
male.
Target Markets
The company is targeting lower income group with family, first-time buyers of
car (fresh graduates) and motorcycle owners.
Positioning
Tata Nano will position itself as the world cheapest car and yet does not
compromise the quality, safety and environment. This positioning will be
achieved by leveraging Tata Nano‘s competitive edge: industries experience
from the parent company Tata Motor who has been in vehicles industries
(commercial, passengers & utilities) since 1945. Tata motor has good supplier
manufacturer relationship with more than 100 components.
Geographic Segmentation
Tata Motors has targeted the urban area in china. This is going to be Hongkong
and shanghai. There are 15 million motorcycle riders in china. Geographic
segmentation calls for dividing the market into different geographical units such
as nations, states, regions, countries, cities or neighbourhoods. In the Chinese
context geographic segmentation assumes importance due to variations in
consumer preference & purchase habits across different regions and states of the
country .One of the major geographic segmentation variables relevant for
marketers in India is the division of markets into rural and urban areas.
Differences in urban & rural markets, based on different parameters including
market potential, have major implications for marketers. The need to segment
the market geographically becomes clearer when we look at some of the
characteristics of the market.
21. 21
Distribution review
Just like in India, Tata Nano will be positioned as an affordable car even in
overseas markets. ‗Easy-to-assemble kits‘ will be imported from Tata in India.
The car then will be assembled at pre-defined locations.
Competitor review
The main competitors are Proton, General Motors, Perodua, Ford, Opel, Toyota
and Honda.
PROMOTION STRATEGIES
Before determine the promotion strategies, we need to very clear about what are
the Objectives we need to achieve. We know as above, our missions are to
promote Tata Nano in Malaysia and increase the sales quarterly. Tata Nano is
very new for Chinese; they feel fresh with this new brand and concept of this
car. Tata Nano will get into Chinese market in 2011.
So first of the objective for promotion strategies are aims to create brand
awareness and concept/knowledge of this new car – Tata Nano. This is the
cheapest car in the world and burst into the worldwide market in the short time.
But still is the new brand for the China, so we do the advertisement and
organize the event or campaign in sufficient detail to establish the good brand
attitudes. Brand awareness is important to provide a foundation for brand
equity. After that, our second objective is knowledge and persuasive. We aim to
create liking, preference, conviction, and purchase of a Tata Nano car. We can
do the comparison with other cars which are higher purchase price and this
price is not every people will be affordable especially lower income families
and students.
Beside that we will convince current purchasers that we will give the
potential customer to enjoying the good experience with Tata Nano by give try
to drive the Tata Nano before buying the car. And also will provide them
warranty to the Tata Nano. We will organize all the promotion strategies with
lower cost to maintain the lower purchase price for the Tata Nano in China.
22. 22
Online Advertisement
First step we start before lunching Tata Nano, we do the online advertisement.
Tata Nano created a Web site – www.tatanano.com – on March 2009 to better
communicate with the customers. In the Web site, we posted the photo
categories and videos to provide customers the information and special features
of Tata Nano and bring them inside the company. In addition to photos and
videos, the web site links to recent news about Tata Nano and space for public
feedback.
Besides that, Blogs have become an important outlet for word of mouth
which is regularly updated online diaries. Blogs is bringing together people with
common interests. They vary wide and can influence a vast audience due to
many internet users have read Blogs. We can establish the blog network and
carefully monitoring to find out what's on people's minds especially the
potential customers. This is a cheapest and good way to build up brand
awareness.
Television Advertisement
Television advertisement is very expensive but this is the most powerful to
perform the Tata Nano to the public by demonstrating Tata Nano attributes and
persuasively explaining their corresponding consumer benefits. By lower
advertising budget, we cannot do the TV advertisement in whole day, so we just
choose the prime time to place the advertisement. By properly designed and
executed TV advertisement can improve brand equity and affect sales and
profits.
Radio Advertisement
Most of the Chinese listen to the radio daily. Now a days have many facilities
such as MP3, hand phone and so on, is convenience for the people to listen the
radio anytime at anywhere, This is a cheap and pervasive medium for us to
create the brand awareness by repeatedly listen the advertisement and the brand
name. Advantages of the radio advertisement are flexibility, quick response and
also more effective media for reaching teens.
Newspaper Advertisement
Beside that the radio, most of the Chinese also will saw a newspaper every day.
So this is good market coverage. From here, Tata Nano can get the broad
acceptance and good reputation from Malaysians. Newspaper advertising is
inexpensive
23. 23
IMPLIMENTATION:
Product: An impeccable vehicle covering all segment of the market from
youngster to senior citizen as well as low income group people. Attractive,
compatible and small yet comfortable with wide space make it attractive.
Price: Tata Nano offers world cheapest car which have no other competitors in
the market. Tata Nano is affordable to every low income group of peoples as
well as students and two wheeler group. 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.
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.
Promotion: Tata motors promote their products via Advertisings ( TV., radio,
news paper, promotional events) and after sales services
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.
Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for
achieving excellence in overall Company performance.
24. 24
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.
25. 25
Channel of Distribution Strategies
Direct marketing channel (zero-level channel)
We perform the Tata Nano in China by selling it directly to customers. Customers can deal
directly with our dealers and take the booking for Tata Nano by visit our sales office or at any
special event/campaign. Besides that, customers also can get the information or make the
booking via the telephone (1-800-88-nano) and through the Internet ( www.tatanano.com ).
By this way we can save more cost and maintain the cheapest purchasing price rather than
through retailers or resellers.
Physical Flow
From the diagram, we can know that Tata Nano will send the paths to the China after
received the order from the sales office. After that, we will assemble a car at the workshop.
Finally, send to the customers directly. From here, we can often provide faster delivery to
customers because we are closer to the customers.
Payment Flow
Customers can pay bills by cash or do the financing from bank. Customers pay less by this
diagram due to not need to pay extra commission to third party such as wholesalers or
retailers. Tata Motor also can collect the payment more efficient.
Information Flow
Customers can get the information directly from Tata Motor such as new product, price
development and so on. Tata Motor can more understanding customer's needs when receiving
customers, response calls and mailings or through internet blog. If customers have any need
or complaint, we can satisfy them immediately by deal with customers directly.
Promotion Flow
Manufacturer
Tata Motor at India
Transporters
Warehouse
CustomersAssembly Workshop
at Malaysia
Customers
Tata Motor at India Sale Office at
Malaysia
Banks Banks Customers
Tata Motor at India Sale Office at
Malaysia
Customers
Tata Motor at India
Marketing
Campaign/ Event
MediaSale Office at
Malaysia
Customers
26. 26
Have two ways of promotion flow, directly and indirectly. Directly is we'll organize the
marketing campaign, event and road show. By this way, we'll promote Tata Nano to target
market by face by face and provide the opportunities to them try to drive the Tata Nano.
Indirect ways are we will do the advertisement through media such as internet, TV, radio and
also newspaper. By this promotion flow, Tata Motor aims to create brand awareness and
increase the sales in the China.