Tata Nano 704c4t

VIJAY GAIKWAD JITESH JAIN BHAGWAN JADHAV

It was established in 1945. It is India's largest car company. Annual revenues of nearly $9 billion.  It has 23,000 employees.  It has more than 4 million vehicles.  It sales, services and spare parts network comprises over 3500 touch points.  The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacture

• 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

STP Segmentation Targeting Positioning

SEGMENTATION Process of subdividing a total market into different subsets or groups. Where the marketer may select one or more segments. To be reached with an appropriate marketing mix.

Evaluation of segmentation Measurable Substantial Accessible Differentiable Actionable

Basis for market segmentation

On the basis of consumer’s personal characteristics (nonbehavioral correlates)

Geographic

Demographic

On the basis of consumer responses (behavioral correlates)

Psychographic

Socio-economic

Usage based

Benefits

Loyal status

Usage based segmentation Market segmented into  High buyers  Medium buyers  light buyers

Targeting Once the firm has segmented the total market ,it should select the target market segment or segments for marketing. Investing in a particular segment should be sensible in of company’s mission, objectives, skills and resources.

Targeting Strategies

Single segment concentration strategy

Multi segment strategy or differentiated marketing strategy

Undifferentiated marketing strategy

Single segment concentration strategy  The firm selects a single segment or market and fully concentrate its marketing efforts to try and seek maximum advantage.

Car maker

Single marketing mix

Semi-luxury segment (Expensive) Small car segment (affordable, less expensive)

Luxury car segment (very expensive)

Target Markets The company is targeting lower income group with family First-time buyers of car (fresh graduates) Existing Motorcycle owners

Market Positioning Positioning of a product or service is creating an “image” in the consumers’ mind. Consumers generally buy “images” rather than actual product. Marketers mostly use advertising as a tool to build up brand or corporate “image”.

Positioning strategies Sl. no.

Positioning strategies

Definition

Advertising claims

1.

Customer benefits

Associate a brand or product with Benefit(s) customer benefits

2.

Price and quality

A product is highlighted in of service features or performance. Manufacturer charges high price

Value for money

3.

Application

Associating a product or service with a use or application

Use or application of a product or services.

4.

Product

Associating a product or service with a or class of s.

Cine stars or sports heroes using the product

Positioning strategies Sl. no.

Positioning strategy

Definition

Advertising claims

5

Product class

Associating a product or service in a particular product class

World class products

6

Cultural symbols

Associating cultural symbols with a product or service to differentiate from competitors product

Royal

7

Competitors

Associating with competitor’s product or service by comparison

Compares with competitors brand

"Nano"--the name, its image...any stimuli relating to Nano will generate a common response in the minds of most people...1 Lakh Car.. How is this image going to effect the success of Nano.... Will Nano be rejected as a "cheap car"? Will its image be destroyed by it being excessively used as taxi cabs..?

So how should Tata position Nano in the minds of Indian Customer..?  Nano must be projected as the FIRST CAR to the potential customer.  The BEST FIRST CAR an average Indian can have  "Nano is the best option for a first car, and you can a bigger car when you are in a financially better position..

 If Nano is first car, in a few years people will go for a new car.

 Tata's product line will range form Nano to

Jaguar.  Nano buyer can be a potential Jaguar customer.