Tata Nano Cars In The New Zealand Market Marketing Essay

Tata Nano Cars In The New Zealand Market Marketing Essay Globalisation is the trend which has an impact on countries, organisations and peoples. Global markets help organisations to do their business on a worldwide scale (Bradley, 2005). This report is divided into five sections. In section first it describe about the chosen Indian automobile company which is Tata motors and the chosen product which is Tata Nano car. It also discussed the rate in which the car is sold and who are target customer and where product is marketed. In section second it describe marketing situation about the car. Further, it presents a review of the product and explaining its features as to why the car has to be launched in New Zealand which is the target country. Moreover, pricing strategy is mention which is followed by the promotion techniques. In section third it consists of objectives of it and in section fourth implementation of the marketing strategy is done by analyzing the present marking and giving ideas to market the car. Finally, in section fifth futu re research about the product is carried out. 1. Overview about the company Tata Nano is the cheapest motor-car in the world. It is traded in domestic nation, India for about Rs 1 Lakh (Guardian, 2010). It is constructed by Tata motor limited, the biggest vehicle industry in India. Its chairperson, Mr. Ratan Tata envisions that Tata Nano to turn out to be a peoples car which is cheap for everyone (Tata, 2010). Tata Nano was started in India on 1st April 2009 and anticipated in Indian marketplace by July 2009(Tata, 2010). While launching, it has made an enormous buzz among the Indians. By the initial of launching, it has encountered by 5500 registrations for the car (Tata, 2010). Since from launching, the production of the car is still growing high. Target market and customer If 4 wheels cost as small as two wheels, that would quickly alter among the people. Last year about seven million scooters and motorcycles were traded in India, generally among 30,000 INR to 70,000 INR, about 936 NZD to 2185 NZD (Times of India, 2010). Tata is aiming a cost of 100,000 INR as a single of 100 thousand, by Indian conditions of evaluation or about 3122 NZD at present to replace the rates, for that motor-car. Its impossible that which is affordable in the west however persists three times upper than Indias yearly per capita money. The medium wage for industry employees at Tata motors is just $5500 per annum (Gupta, 2009). There are three kinds of model available of Tata Nano car that are Tata Nano, Tata Nano cx and Tata Nano lx (Tata, 2010). In most of the countries the Tata Nano car is introduced. Here the target place is New Zealand marketplace. So, due to warm climate in New Zealand, exclusive Tata Nano cx shall be launched in New Zealand. The retailing cost of Tata Nano cx in New Zealand will be NZD 5746.90 as a whole. With this price, the focus of the marketplace is wide for the company as the average income of the people is NZD 838.70 per month (New Zealand Income Survey, 2009). So, the company can target the people who need their own transportation facility and desire to have luxurious in a very low cost. 2. Situational Analysis 2.1 Product review à ¢Ã¢â€š ¬Ã‚ ¢ There are three variants in the Tata Nano stage: Tata Nano, Tata Nano cx and Tata Nano lx (Tata, 2010) à ¢Ã¢â€š ¬Ã‚ ¢Exclusively the Tata Nano cx variant could be prefaced in the New Zealands marketplace for the initial phase à ¢Ã¢â€š ¬Ã‚ ¢Tata Nano lx shall prefaced in the New Zealands marketplace since the subsequent years the motor-car has attained its base expense by minimizing costs on needless luxuries, the fundamental Nano car approaches unless frontage and back fog glows, unless a heater or ambience disciplining, unless anti-lock brakes, single windscreen wiper, manually functioned windows, guidebook steering with nothing ambience purses, small 12 wheels, plastic body portions added with paste besides of more traditional metal and welding and a two cylinder 623 cc locomotive that renders a big highest speed of 65 mph (approximately 105 km/h) (Dhingra,2009). 2.2 Stylish and comfortable The peoples car, planned with a component of mind, has a spacious passenger compartment with benevolent leg gap and head room. It can be contentedly placed by 4 members. 4 doors with elevated seating places create ingress and egress. Length with a distance of 3.1 meters, breadth of 1.5 meters and an altitude of 1.6 meters, with sufficient land clearance, it can effortlessly access on busy roads in metropolises as fine as in countryside fields(Infibeam, 2010). Its mono-mass plan, with wheels at the corners and the power train at the back, facilitates it to unique aggregate of the couple space and the ability of movement that shall group a standard between little cars. 2.3 Fuel-efficient engine The peoples car has a back-wheel drive, all aluminum, two-cylinder, 523 cc, 33 PHS, multi point fuel infusion petrol locomotive (Infibeam, 2010). This is the initial occasion that a two-cylinder gas locomotive is being applied in a car with a one balancer ray. The lean plan strategy has availed to minimize the load that aids to maximize the activity as a whole expended and renders elevated fuel accuracy. Activity is ascertained by particularly planned electronic locomotive administration. 2.4 Environment-friendly The peoples car tailpipe releases the activity beyond the restrictive necessities. In conditions of total pollutants, it has a less pollution than the two-wheelers being constructed in New Zealand nowadays. The elevated accuracy also assures that the motor-car has less carbon dioxide emissions, thereby offering the twin advantages of a cheap transportation solution with a less carbon footprint (Guardian, 2010) 3. Financial Analysis 3.1 Pricing strategies The cost expense is an approximated USD 2,420 that involves importing revenue, responsibilities excise, trades revenue, shipment costs and gathering cost. The retailing expense for the New Zealand marketplace is comprehensive of principle supplements; however omit road revenue (NZD 29.40), listing payments (NZD 62.90), number plate (NZD 21.00) and possession endorsing payment (NZD 21.00), trades revenue (NZD 574.70) that numbered to NZD 134.20(New Zealand Govt., 2010). The on-the-road expense shall be NZD 6624.80.those issues replicate a strategy for accepting a portion from found competitors, such as peroduas paradigm of kancil and viva (Farris, et al 2009). 3.2 Setting the price selecting price objectives Tata Nano New Zealand has a group of three aims in its attempt to place itself in the New Zealand moving marketplace. The aims are: survival, highest current incomes and highest market income. Survival Strong contest from New Zealands latter motor-car producer, perodua for a portion of the moving marketplace chapter for the under 1,000 cc sort shall spur Tata Nano New Zealand to assure that the motor-car expense conceals the variable costs and certain determined costs. In this example, existence is a concise word goal as in the lengthy execution, Tata Nano New Zealand shall append rate such as joined security characteristics to the Nano stage (Omar, 2009). Highest current incomes Tata Nano New Zealand has a group of expense that shall enlarge the present earnings, currency run and continues on asset, later than accepting into assumption the requirement and costs committed. As this sort of little overseas cars chapter has not been absolutely tested by other producers, hence the requirement is alternatively hard to approximate however Tata Nano New Zealand is self-assured of a better acknowledgement that towards the entrance in the New Zealand markets (Times of India, 2010). Highest market income For the New Zealand marketplace, Tata Nano shall execute the marketplace-diffusion pricing that is to group a low expense for a recent motor-car in sequence to lure a huge number of customers and a huge marketplace portion. This shall be finished by accomplishing the elevated trades and their outcomes in low costs, admitting the industry to reduce its expense. The base-expense entrance shall render New Zealand customers with a feasible option to perodua -New Zealand latter federal motor-car. More relaxation is anticipated as New Zealand implements the Asian independent sale domain contract that commits the New Zealand regime to reduce the overseas motor-car taxes (Michael, 2009). 3.3 Total sales estimation The expenditure choice of 100 thousand INR is absolutely moving to create a numerous people that transit to four-wheeler fold and that will burst the requirement (Tata, 2010). The fundamental cause was the certainty that the aim of the expenditure will modify the four wheeler sector. It was chosen to group the organisation with 500 thousands car per year capability and increase upward in levels, with expand of small car in marketplace requirement (Fill, 2006). 4. Advertising and promotion 4.1 Promotion strategies The actual missions are to boost the Tata Nano in New Zealand and to expand the trades periodically. Tata Nano is very recent for New Zealand, they sense new with their recent trademark and procedure of this motor-car. Thus the goal for promotion plan is their objective to build trademark consciousness and procedure/information of this recent motor-car Tata Nano. This is the cheapest motor-car in the world and explodes into the global marketplace in the concise occasion. However this is the recent trademark for the New Zealand, thus it performs the announcement and manages the occasion or operation in adequate information to constitute the better trademark approaches (Gillespie et al, 2007). Trademark consciousness is essential to render the establishment for trademark fairness. The target to build, preference, certainty, and buy a Tata Nano motor-car it can perform the evaluation with other cars that are very expensive. However, company shall convince the consumer that the company will provide a trial to drive the Tata Nano for before purchasing it and will also render its guarantee for Tata Nano (Shah, 2008). 4.2 Promotion tag line Tata Nano peoples car Why we constitute this label line? This is to create that all the New Zealand people to memorize that Tata Nano is for the people. Tata Nano is for security and it can migrate universally by Tata Nano name with the peculiar entertaining for the people, however it just want to wage all of this at lesser expense -pay fewer and obtain more. Along that the people can enjoy their globe size and cost expenditure (Cadbury, 2008). 4.3 Online advertisement Initially, the launching of Tata Nano in New Zealand will be done by online announcement. The company will develop a website for intercommunication with their customer. In the website, the company will upload photos and videos of the car and will ask for the feedback from the customer. These help people to get latest news about Tata Nano and gap for common acknowledgement. More than that, blogs have turned out to be an essential outlet that is routinely updated by online diaries. Blogs is bestowing collectively by people with general interests. They differ in broad and can impact enormous listeners due to numerous web clients to study blogs. The company can constitute the web blogs network and cautiously supervising to determine out what is on peoples mind. This is a cheapest and better manner to construct trademark consciousness (Schmidt Hollensen, 2006). 4.4 Television advertisement Television announcement is very costly however this is the most effectual to carry out the Tata Nano to the common people by showing Tata Nano properties and persuasively explaining their equivalent customer advantages. By lesser announcing spending plan, the company cant perform the TV announcement in altogether day (Srivastava, 2008) thus it can select the occasion time (7pm 11pm) for the announcement. 4.5 Radio advertisement Most of the New Zealand people hear to the radio day-to-day. Presently they have numerous services suchlike as mp3, hand phone and so on, is expedience for the people to hear the radio anytime at anyplace; this is an affordable and pervasive average for manufacturers to build the trademark consciousness by often hearing the announcement and the trademark identity. Benefits of the radio announcement are versatility, fast acknowledge and also more effectual media for reaching teens (Mooij, 2003). 4.6 Newspaper advertisement Along with the radio, most of the New Zealand people also read the newspaper daily. Thus this is better way for marketing the product (Alexander, n.d). Due to it company can obtain wide adoption and better reputation among the local people and it is cheaper also. 5. Objectives The objective of company is to fast-grow and accomplishing the aims for three years of the markets. First year goal is to accomplish 25,000 units of trades acquiring the market and to obtain the highest percentage. Second year goal is to accomplish 10% for expanding in periodical establishment (NZD 20381.00). Third year goal is to accomplish major people using Tata Nano by the end of 2014. 6. Implementation 6.1 Business and marketing analysis Tata motors limited is Indias biggest vehicle industry, with incomes of Rs. 35651.48 crores (used 8.8 million) in 2007-08(Brokersreport, 2008). It is the organizer in marketable automobiles in every chapter, and between the peak three in passenger automobiles with succeeding commodities in the constriction, midsize motor-car and usefulness vehicle sectors. The industry is the worlds 4th biggest truck producer, and the worlds latter biggest motorbus producer (Guardian, 2010). In March 2008, Tata motors adopted Fords UK depend motor-car brands Jaguar and Land rover (BBC news, 2008). As per the Ratan naval Tata (chairperson of Tata team), the requirement for the creation which is similar to Nano that has obtained to perform somewhat for the people of India and for their traveling, unavailability and bad feature of long travel is a general difficulty in India. So with this, Tata Nano is made as a safer mode of travel (Tata, 2010). The following will be key strengths and weakness within the company and describes the opportunities and threats facing Tata Nano. 6.2 SWOT Analysis Strengths The internationalization strategy thus distant has been to retain native directors in recent gains, and to exclusive transplant a pair of superior directors from India into the recent marketplace. The advantage is that Tata has capability to replace the expertness. The industry has a prospering federation with Italian bulk manufacturer fiat since 2006(Marketingteacher, 2010). This has improved the merchandise portfolio for Tata and fiat in conditions of generation and information change. For instance, the fiat polio elegance is started by Tata in 2007, and the parties have a contract to construct a select-upward that was aimed at middle and South America (Yoginvora, 2009). Weaknesses The industrys passenger motor-car commodities depends on 3rd and 4th production platforms, which places Tata motors limited at a demerit with opposing motor-car producers. It is frequently not recognized that in English the term tat implies garbage (Marketingteacher, 2010). Opportunities In the summer of 2008 Tata motors proclaimed that it have profitably purchased the Land Rover and Jaguar brands from fords motor (Marketingteacher, 2010). Two of the worlds comfort motor-car trademark have been joined to its portfolio of brands, and shall undoubtedly to the industry. The opportunity to marketplace automobiles in the comfort sector Tata motors limited adopted Daewoo motors marketable vehicle trade in 2004 for approximately used $160 lakhs (Marketingteacher, 2010). Nano is the cheapest motor-car in the world selling more than a motorbike. The recent and emerging industrial countries suchlike India, South Korea and china shall have a thirst for low-cost passenger and marketable automobiles. The stage of wonderful Milo fuel proficient buses is powered by wonderful-proficient, eco-friendly engines. The motorbus has optional biological grab with booster aid and best ambience intakes that shall decrease fuel expenditure by 10% (Marketingteacher, 2010). Threats Other opposing motor-car producers have been in the automobile industry for more than 40-50 years (Marketingteacher, 2010). Hence the Tata motors have to grasp in conditions of feature and lean generation. Sustainability and environmentalism would imply additional costs for this base-cost manufacturer. This would influence its underpinning spirited benefits. Apparently, as Tata globalizes and buys other brands this difficulty would be improved (Doole Lowe, 2005). Since the industry has concentrated on the marketable and little vehicle sectors, it has to explicit to the contest from abroad parties for the emerging Indian comfort sectors. Recently, in Pune city Mercedes Benz has decided to build 5000 car per year (Marketingteacher, 2010). Other participants of growing comfort cars aimed at the Indian marketplace that contains ford, Honda and Toyota. Growing companies in the international financial system which would pose a danger to Tata motors limited on a pair of faces. The rise in the cost of steel and aluminum is putting force on the costs of generation. The Tatas commodities which run on diesel fuel are turning very expensive for internationally and for inside its conventional domestic marketplace (Yoginvora, 2009). 6.3 Product strategies The product strategy that shall be accommodated direct product elongation that is trading the motor-car in an additional overseas marketplace unless some alteration was made. This is due to the products growth and its cost, constructing alters, or recent promotions (Bhanot, 2008). The Tata Nano cx, consisting of all the characteristics explained in the previous product study division, shall be traded with 3 yr guarantee or 100,000km guarantee, either approaches the initial stage. The company shall preface the Tata Nano lx since the subsequent annum, later than we have found our Tata trademark. The trademark and logo shall be showed on the motor-car as fine as in all trading sectors. 6.4 Branding Brands analyze the resource or producer of a product and permit the customers Persons or organisations which will allocate its problems for its activity to a specific producer. Marketing is endowing with commodities and facilities with the influence of a trademark. Its all about making dissimilarities among commodities. For marking plans to be prospering and trademark rate should be made, customers should be satisfied and there are significant dissimilarities between brands in the product or sustainable sort. In Tata nanos example, the marketing strategy is applied to the companies identity merged with single product names. This companys identity legitimizes and the identity individualizes the recent product (McDonald, 2007). 6.5 Marketing analysis Launching code is very essential for placing that the role of planning Tata Nano and picture to employ in New Zealand in the minds of the targeted marketplace. Launching code is also a single for the promotion plans to construct consciousness, via launching at common midpoint Tata motor shall preface the Tata Nano to marketplace. The company focus on trading operation that shall take position at all the IPTA and IPTS that can manage the convocation, by offering merchandise show and sign; and the people can have the knowledge with Tata Nano by rendering the chances to drive Tata Nano in the campus (Doore Lowe, 2005). For this operation, the title is better outlook with Tata Nano. In their processing existence however they cannot provide to purchase the too costly motor-car; multinational young people just want the motor-car that is under their financial system and by it in concise period for about 2-3 years for their adolescent existence in New Zealand. This is the cheapest cost by o ccasion or operation in the campus (Baden, 2008). Thus it can focus on lesser money team with module particularly these are arrived from New Zealand or India. By the e-mail, telephone, fax, email to intercommunicate with them. Low on historical, more of the Malay or India shall purchase the motor-car in some reasonable cost. Raya with Tata Nano can be the topic for our operation at this era, and boost the Tata Nano as the cheapest and security (Cadbury, 2008). After the arrival of Nano, New Zealand will have the mega trades due to the recent annum in the stop of the annum at altogether New Zealand thus that they have numerous people and shall move for purchasing. The company can manage the occasion at purchasing in midpoints. In New Zealand such as klcc, mid-valley, betrayal and sungai wang by offering merchandise show and sign (Bradley, 2005). Very soon most of the employees in New Zealand shall obtain the incentive in this era thus for buying influence will expand. The company shall perform the road display at each state (altogether New Zealand). The company can used the road display at the midpoint of the market such as the entire marketplace at all the state. Numerous people come to the marketplace for purchasing vegetable and essential entities. Among, them most of are ladies or housewife. Certain of them move to markets by motorcycle or by motorbus. So, they are aim trades for the company (Cadbury, 2008). The company can boost Tata Nano to it such as, Tata Nano is the cheapest motor-car in the world, obtain the Tata Nano to be latter motor-car for their module person particularly for their kids or senior root, simple existence with Tata Nano. Housewife or mother can move to market or anyplace by Tata Nano best than motorcycle or by motorbus for their total day-to-day issue more efficiently. When, the ladies obtain this news, they pass on others very instantly. This will support the company in boosting Tata Nano efficiently in the native com munity. At the road display, people also can obtain the knowledge regarding Tata Nano by having the chances to drive the Tata Nano motor-car. 7. Future Research To be successful, Tata Nano would be required to spend a handful of time in researching its target market. Firstly, it would be required to indentify what information is needed about its target audience, secondly, it is required to collect the essential data and finally to analyse the information which in return would help Tata Nano with its decision making. It is agreed that it is a matter of indentifying and understanding the customers choices, thoughts and behaviors which would play a large part in successfully launching its new product. Using the data collected, Tata Nano would be able to adjust or mould its product to make it most suitable for the customers experience. For the most effective approach, Tata Nano would be required to take a methodological approach to market research including qualitative and quantitative research. A qualitative approach could include the interviews of target consumers to see what opinions on the product are, this is normally done on a small scale to give a detailed response. A Quantitative approach would include random sampling of the target audience in the form of surveys or questionnaires. A mix of both forms of research should give them the information and knowledge to penetrate the market with their new product.