Revamping marketing strategy of Tata Nano

1. Revamping Marketing Strategy
of
TATA Nano
Presented By:
Kirtan Pandya (32)

2. Flow Of Content
• Initial marketing strategy
 STP
 Marketing Mix
 Brief
 Marketing strategy
• Proposed marketing strategy
 Communication process
o National level
o Ahmedabad level

3. Start of Dream!
“I saw families riding around on
scooters with kids standing up and
the mother carrying a baby and
sitting pillion and decided to do
something about it. It started as a
quest for an affordable
transportation solution”.
- RATAN TATA

4. STP
Geographic Rural and Urban (Tier 2 , Tier 3)
Demographic Family size Nuclear family (married couple, children)
Income Middle class (80,000 – 1,20,000 p.a.)
Lower middle (40,000 – 80,000 p.a.)
Psychographic SEC : B1 B2
Behavioral Benefits Economy, quality
User status First time users
Target market Executive two wheeler segment, second hand car user,
lower income group people.
Positioning TATA intending to place in the mind of the
consumers as a ‘People’s car’

5. Marketing Mix
Product Price
An impeccable vehicle, covering middle and Offering the lowest price in this segment
lower middle segments of the market,
attractive, small yet comfortable
4P’s
Place Promotion
Coming from the Tata’s stable, the Nano
With the existing Tata dealers
nd largest dealer and service network in already created a brand image. The price of 1
(2
lakh has offered enough promotion not only in
India)
India but also globally.

6. Creative Brief
• Problem
 To spread Word of mouth as 1 Lakh car
• Audience
 Lower middle and middle class
• Support
 Economical car with sufficient features
• Core message
 To speak the language of the middle class
consumers, while highlighting the product's
features including space, performance,
mileage, safety and durability.
 The campaign was a blend of emotionality
and functionality.

7. Marketing strategies
• Online strategies
 Website
 Social media
 Nano game
 Online Advertisements

8. Marketing strategies
• Offline strategies
 Collaborations with banks
 Mall displays
 Dealer network
TV commercials and Print Ads
Auto Expo (Delhi and Geneva)

9. What went wrong with Nano?
• Wrong positioning with
some technical errors in
the car

11. Proposed
Marketing Strategy

13. Factors that support new marketing
strategy
• Compared to advanced automobile markets,
income levels in India are significantly lower
and it results into very less market share
(around 3%) of 4 wheelers of India in world
market i.e. Enough scope to grow
• 65% population is below the age of 35
• Perfect combination of quantity and quality!

14. Creative brief
• Problem
 To remove its tag of poor people’s car
• Audience
 Primary audience: Young executives
 Secondary audience: Middle class & lower middle class
• Core message
 Nano will be stepping stone to your career path
• Support
 Available in 3 variants with Basic features, superior quality and small price!

15. Communication Process
Identify Target Audience
Determine Objectives
Design Communications
Select Channels
Decide On Media Mix
Establish Budget
Measure Results

16. Identify Target Audience
Geographic Rural and Urban
Demographic Family size Young Single
Nuclear family (married couple, children)
Income Upper Middle (> 1,60,000 p.a. )
Middle class (80,000 – 1,20,000 p.a.)
Lower middle (40,000 – 80,000 p.a.)
Psychographic SEC : A1 A2 B1 B2
Behavioral Benefits Economy, quality
User status First time users and Potential users
Target market Young executives who has just started their career , second
hand car user,
Positioning Tata Nano will be positioned as car which is for all the young
people who believes they are hard working and who invest
their money wisely

17. Determine Objectives
• To revamp the ‘Brand attitude’ for Nano
• To change ‘Brand purchase’ intention for Nano
• To portray Nano as an ‘Intelligent choice’
amongst competitor cars

18. Design Communications
Message strategy What to say? Rational and Social rewards
Creative strategy How to say it? Informational appeal

19. Select Channels
Personal Communication channel Advocate and Social channels
Non Personal Communication channel Advertising
Sales Promotion
Events

20. Decide On Media Mix
Advertising Sales Events Direct Personal
• Print & Promotion • Festivals Marketing Selling
broadcast • Contests • College • Web sites • Fairs & trade
Ads activities shows
• Tie-ins • Blogs
• Billboards • Incentive
• Catalogs
programmes

21. Establish Budget
• Print media
• TV Commercials
• Outdoor Advertisements

22. India Level

23. Print Media
Newspaper Size Rate of 1 Total rate Duration Total cost
(Color Ad) day for 3 days in for 2
a week months
Times of Full page 14,85,000 44,55,000 2 months 3,56,40,000
India

24. TV commercials
Channels Timing (Slots) 1 day cost for airing Total cost for 2
Ad for 8 times months
(30 sec)
MTV 7pm – 11 pm 15 Lakh 9,00,00,000
Aaj Tak 7pm – 11 pm 18 Lakh 10,80,00,000
Star Plus 7pm – 11 pm 20 Lakh 12,00,00,000
31,80,00,000

25. Outdoor advertisement
Location Size (cm) Rate of 1 Rate of 5 Frequency Total cost
billboard billboards
for for 2
2 months months
City 400*500 12,03,960 60,19,800 20 12,03,96,000
Highways 720*2400 18,06,680 90,33,400 20 18,06,68,000
30,10,64,000

26. Total advertising budget
Tool Cost
Print 3,56,40,000
TV 31,80,00,000
Outdoor 30,10,64,000
Total 65,47,04,000

27. Ahmedabad Level

28. Outdoor advertisement
Location Size (cm) Rate of 1 billboard Rate of 40
for billboards for 2
2 months months
Main Cross roads 400*500 12,03,960 4,81,58,400
& Near corporate houses
4,81,58,400

29. Events
• ‘Bright future with Tata Nano’
• Fairs & trade shows by authorised dealers
• Tie ups with corporates and driving schools

30. Total advertising budget
Tool Cost
Outdoor 4,81,58,400
Events 20,00,000
Total 5,01,58,400

31. Measure Results
After first 2 months (Jan-Feb) Comparative increase in sales of Jan-Feb than
previous 2 months
After 4 more months (March-April) Increase of 5% in sales
After 3rd quarter Increase of 10% in sales
After 4th quarter Increase of 10% in sales
• Survey among the consumers asking them their previous and
current attitudes towards Nano and their behavioral response

33. References
• www.afaqs.com
• http://www.business-standard.com/india/
• www.tata.com/media/reports/inside.aspx?arti
d=7wzQgIGpR6g=

34. Thank you 