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Tata Nano Is Cheapest Car In Whole World Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 2647 words Published: 1st Jan 2015

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Tata Nano is cheapest car in whole world. It is sold in India around Rs 1-lakh 25 thousand i.e approximately$ 2000.It is a brand of Tata Motor Limited, which is the largest automobile company in India. The Chairman, Mr Ratan Tata decided to make the “People’s car”which is affordable by everybody. It was first launched in India on 1-4-2009 and it will be in Indian market by 1-06- 2009. after launching, it has created a huge buzz in around the India. Within the first two days , 5500 bookings were made for it. The figures increases day by day.

Due to its smaller and lighter shape and its economical parts and easy to change the material wherever you want without any compromising with environment and safety makes its cheaper.. Tata Nano has better millage than any smaller car and having gas emission like a scotter.

It was assembled in two factories one is in ______-, _________, . There are four distribution centres in India one in ______ ,_______,_______,______. All cars will distributed through there assigned distribution centers. Order can made via these distribution centres or through its web site.

Tata nano has three types which are available

1. Tata Nano

2.Tata Nano CX

3. Tata Nano LX.



Tata Motors Limited is one of the India’s largest automobile company.its revenues are Rs.35651.48 crores which are approximately $8.8 billion in 2007-08. It is leading company in each segment of commercial vehicles and it’s on a third number in utility vehicle segments and acquired winning products in compact and medium cars. Tata nano is the fourth largest truck manufacturer, second largest bus manufacturer all over the world. In March 2008, Tata Motors also introduced Ford’s UK based car brands Jaguar and Land Rover as per (BBC 2008)

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As per Chairman Mr Ratan Naval Tata, the need for the invension of Tata nano has wiling to do something for the indian people and there transport. Poor quality and massive traffic is the worst problem in India. In india on motercycle, man driving with a child sitting in front and wife holding a baby in her hands is normal in this country. So, this is a quit an unsafe mode of transportation of a family. By keeping this in minds a safer form of a car is produced called Tata nano

Market Summary

As per (ICE 2001) India has 5 million bikes as compared to four million cars .The majority was unable to buy a car because of there low income. Significantly huge percentage of motorcycle users in India are men.

2.1.1Target Markets

As per company target policy they focussed on,

Below average income community.

Middle Class families.

First-time buyers.

Fresh graduates.

Bike owners.

2.1.2 Positioning

Tata Nano is on a position as the world cheapest car and still it does not compromise on the quality and safety and environment. This position is achieved by Tata Nano’s due to parent company Tata motors who has been in vehicles industries (commercial, passengers & utilities) since 1945. Tata has good relations in more than 100 components a a manufacturer and supplier.

2.1.4 Geographics

Tata nano is targeted the urban area in India. Because most of the motorcycle riders are in the urben areas


2.1.5 Distribution review

The car then will be assembled at

pre-defined locations. The proposed locations are ________, _________ and

______________. It will be then redistributed to showrooms that will be set up based on region.30sales offices will be opened throughout India.

2.1.6 Competitor review

The main competitors are _________, ___________, Toyota and Honda. The table below indicates the

market share of the main competitors in the auto industry for the year 2008.

3.2 Product Review


There are three varieties of Tata Nano are introduced in the market


2 Nano CX

3. Nano LX

On first basis only Nano CX was introduced in the Indian market

Tata Nano LX will introduced in the Indian Market during the following year

The basic Nano has achieved its low price tag by reducing extra cost of the extra “luxuries”,

It does not have front and rear fog lights.

There is no facility of heater and air conditioner.

It does not have anti-lock brakes.

Just having one windscreen viper

Manual windows

Manual steering without any airbag

Very small 12″ tyres

Its body is made with plastic joined with adhesive instead of pure metal without welding stuff.

It has two cylinders its engine capacity 633 cc which provides the maximum speed of 105 km/h (around 65 mph)

The features of the car are as mention below,

Stylish and comfortable

Tata nanao designed as a family car it has quit spacious compartment having enough legs space. Having space for four persons who can enjoy its ride easily. It has Four doors having high and comfortable seats.its about 2.1 meters long, having width of 1.5 and its height is 1.6 meters. Due to its size it can easily manage on busy roads.

b) Fuel-efficient engine

This car has a quality of rear wheel drive. Its engine is completely made with aluminium having two cylinders and 633cc . It has a multifuel injector in petrol. Two cylinder gas engine is used with a single shaft for the first time in this car.. Its plastic body design helps to reduce the wight, with the help of which its energy per unit consumed and give better fuel mileage . Electronic engine management system designed to control its performance.

c)Meets all safety requirements

This beautiful small call meets the all requirments of the safety regalotary board. Passenger compartment is quit strong in order to safe the passengers at the time of any incident. This car kept all safety features such as seat belts, resistive doors, tubeless tyres strongly built in seats.

d) Environment-friendly

Its emission power satisfies the regulatory procedure. Its high efficiency performance reduces the carbon emission .having low pollution level as compared two any two-wheeler in India. Due to its all features it should be called environment friendly car.

3.3 Branding

Brands identify the source or maker of a product and allow consumers – either individuals or organisations to assign responsibility for its performance to a particularmanufacturer or distributor. Branding is endowing products and services with the power of abrand. It’s all about creating differences between products. For branding strategies to besuccessful and brand value to be created, consumers must be convinced there are meaningfuldifferences among brands in the product or service category. In Tata Nano’s case, the brandingstrategy used is corporate name combined with individual product names. This company’s namelegitimises and the individual name individualises the new product

3.4 Product Strategy

The Tata Nano CX, including all the features described in the earlier Product Review section,will be sold with a three-year warranty or 100,000km warranty, whichever comes first. We willintroduce the Tata Nano LX during the following year, after we have established our Tata brand.The brand and logo will be displayed on the car as well as in all marketing campaigns




Objectives of Promotion Strategies

Before we start to discuss about promotion strategies we require to clear about our all objectives which we need to achieve. As we know our motto is to promote Tata Nano in India and increase its sales as much as we can. This car is quit new for Indian people, they fell quit fresh with this new brand introduced by there well popular company Tata.

Our first and priority objective is to create the awareness for this about the concept of hiding behind its launch.

. As we know it’s the cheapest car all over the world and our aim is to burst it in the world-wide market. But for this first we need to spread it in all over the Indian market for this we need to organize some events and we need to launce some advertisement programs. Brand awareness is the basic need for our strategies.

Then our second objective is to create the knowledge and persuasive. Our aim is to create preference to purchase the Tata Nano car. We can do the comparison with higher price cars in the market which are not affordable to everyone especeilly for the lower income groups, families and also the students.

. Beside all that we give the opportunity to the current buyers they will get test drive before there so that they can get good experience before investing money and satisfies there minds. And also we will offer warrenty for tata nano

We will organize all the promotion strategies with lower cost to maintain the lower purchase price in Indian market.


Promotion Tag line

‘Have Fun, Pay Less, get more with Tata Nano’

The purpose for this Tag line is to understand the Tata Nano qualities. And it’s easy to remember Tata Nano and feel happy all the ways with it. It’s the safer mode of travelling and you can travel everywhere with for friends and families with a lot of fun, just you need to do is , pay less and get with all this our earth also will feel happy with Tata Nano as you know it’s a environment friendly car


Advertising Program

Our aim is to inform Indians that this is the cheapest car in the whole world. You need to buy this car for your safety, good use and for good quality, By developing an advertising program.

4.3.1 Online Advertisement

Firstly before its launch we need need to the online advertisement. Tata Nan has created a Web site -www.tatanano.com for better communication with their precious customers. In this Web site, we posted different photos and picture catalogues and also some videos in order to create knowledge about this product and with the help of this we bring them inside the company

W also provides the space for customers feedback.

Besides that, Blogs have become an important outlet for word of mouth which are 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.

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4.3.2 Television Advertisement

Television advertisement is very expensive but this is the most powerful to perform theTata Nano to the public by demonstrating Tata Nano attributes and persuasively explaining theircorresponding consumer benefits. By lower advertising budget, we cannot do the TVadvertisement in whole day, so we just choose the prime time (7pm – 11pm) to place theadvertisement. By properly designed and executed TV advertisement can improve brand equityand affect sales and profits.

4.3.3 Radio Advertisement

Most of the Malaysians listen to the radio daily. Now a day have many facilities such asMP3, hand phone and so on, is convenience for the people to listen the radio anytime atanywhere, This is a cheap and pervasive medium for us to create the brand awareness byrepeatedly listen the advertisement and the brand name. Advantages of the radio advertisementare flexibility, quick response and also more effective media for reaching teens.

4.3.4 Newspaper Advertisement

Beside that the radio, most of the Malaysians also will saw a newspaper everyday. So thisis good market coverage. From here, Tata Nano can get the broad acceptance and goodreputation from Malaysians. Newspaper advertising is inexpensive.

The following will be key strengths and weakness within the company and describes

theopportunities and threats facing Tata Nano.


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. Thebenefit is that Tata has been able to exchange expertise. The company has had a successfulalliance with Italian mass producer Fiat since 2006. This has enhanced



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 companieshave


agreement to build a pick-up targeted at Central and South America.


The company’s passenger car products are based upon 3rd and 4th generation platforms,

which put Tata Motors Limited at a disadvantage with competing car manufacturers. One

which is often not recognised is that in English the word ‘tat’ means rubbish.


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 have been added to its portfolio of brands, and willundoubtedly off the company the chance to market vehicles in the luxury segments. TataMotors Limited acquired Daewoo Motor’s Commercial vehicle business in 2004 for aroundUSD $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


opportunities. However the company has put in place a proactive Corporate SocialResponsibility (CSR) committee to address potential strategies that will make isoperations more sustainable. The range of Super Milo fuel efficient buses are

powered bysuper-efficient, eco-friendly engines. The bus has optionalorganicclutch

with boosterassist and better air intakes that will reduce fuel consumption by up to



Other competing car manufacturers have been in the passenger car business for 40, 50 ormore years. Therefore Tata Motors Limited has to catch up in terms of quality and leanproduction. Sustainability and environmentalism could mean extra costs for this low-costproducer. This could impact its underpinning competitive advantage. Obviously, as Tataglobalises and buys into other brands this problem could be alleviated. Since the companyhas focused upon the commercial and small vehicle segments, it has left itself



competition from overseas companies for the emerging Indian luxury segments. For example

ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build

5000 new Mercedes-Benz per annum. Other players developing luxury cars targeted at theIndian market include Ford, Honda and Toyota. In fact the entire Indian market has become atarget for other global competitors including Maruti Udyog, General Motors, Ford andothers. Rising prices in the global economy could pose a threat

to Tata Motors Limitedon a couple of fronts. The price of steel and aluminium is increasing putting pressure on thecosts of production. Many of Tata’s products run on Diesel fuel which is becoming expensiveglobally and within its traditional home market.


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