DISTRIBUTION & MARKETING PLAN-SLP WK4

Marketing Strategy

Professor Senft

MKT501

Trident University International

March 6, 2018

Marketing Strategies for Tata Nexon

Introduction

The car at first glance resembles a styling pastiche derived from Honda, Fiat, BMW and a few other manufacturers, can easily be forgiven. Once inside the car and with express orders to drive it, the styling puzzle tends to become a lot less significant. And the adage about imitation being the most sincere form of flattery springs to mind. This section takes you through the marketing plan for Tata Nexon. It will be a true ‘Value-for-money’ product and will be available in varied colors suited to the Indian and global markets. The company’s under-development compact car, code named project Nexon, will also be exclusively made and exported from India. Running around the clock and selling everything it can build; Tata Motors is bursting at the seams. But as demand grows and rivals scale up, the car maker has chosen to take its foot off the pedal. Tata Motor’s strategic decision to focus on quality over quantity, even as its production lines are stretched in India and elsewhere, risks losing hard-won market share and is forcing it to divert output from its plant outside India away from exports to other high-growth markets to meet domestic demand.

Issues Analysis

Rolling out of newer products into the market is an uphill task, even when the company behind the product has been around for a while. This id the understanding with which the Tata Nexon will be based on, and these issues must be clearly articulated and strategies be formulated creating the most appropriate way of addressing them. Based on this understanding, these are the issues which ought to be addressed by the company as it rolls out Tata Nexon (Morgan, 2012).

· Product failure and has never ranked well in countries such as US, UK and European car markets (although done reasonably well in light trucks and buses), thus failed miserably in their City Rover launch in Europe.

· Not yet prepared fundamentally to handle the global market shares being enjoyed with other brands such as Landrover.

· High level of Competition experienced by the Company, both at it backyard and in the global arena.

· Returns on Sales of the Vehicles of the company remain relatively low.

Based on the issues above, it’s imperative on the company to focus on campaigns aimed at promoting and creating awareness on their products. When rolling out the Tata Nexon, the company will have to inform the targeted customer base on their products. Global strategic collaborations should also be adopted as a mechanism of marketing the products in the global arena. When these measures are adopted, the company will be able to achieve the desired market penetration and hype the return on sales, which has continually remained low. These strategies will not only increase the returns on sales, but will also act as an important forum for creating awareness on the Tata Brands in the international Market (Samli, 2012).

Goals and Objectives

The marketing objectives while rolling out the new model of Tata Nexon shall be guided by the following goals and objectives:

1. Product development to meet the needs of the company and those of the organization.

· Objective: Maintenance of and sustenance of vehicle development both in India and in the global Arena.

2. Brand market Penetration

· Objective: Brand development and entry into new markets

· Address consumer needs in order to achieve their satisfaction

· Develop and Maintain Brand quality in the home as well as international markets

3. Increased Return and Sales

· Objective1: Increase the sales by over 30% in the first quarter of the year when the model is rolled out.

· Objective 2: Increased sales per unit to over one thousand units in the first quarter of the project.

Target Market

The company’s motivation in rolling out Tata Nexon is not only driven by the appeal to the local Indian Market, but also to break the dominance of other car manufacturers in this area. A large proportion of the Indian population is relatively young - in the age group of 20-59 years. This is expected to boost the automotive domestic market as a younger population has a higher consumption index. The rise in income levels of the Indians and the emergence of the consuming class that has higher propensity to spend offers great opportunities for growth to companies across various sectors. This trend is not only witnessed in the targeted Indian Market, but is also the current trend in various parts of the world. This therefore means that the targeted market will be the increased young population who are lovers of luxury cars.

Primary Target Market

Over the last few decades, the car market in India have been in a burgeoning stage with all types of cars flooding the market in order to meet the demands of Indian customers who are increasingly exposed to state-of-the-world automobiles and want the best when it comes to purchasing a car. It is expected that by 2030, the Indian car market will be the 3rd largest car market across the globe. Small cars seem to be ruling the roost in the Indian automobile market with over 7.5 lakh small cars being sold in India in 2016-17. The main encouraging factors for the success story of the car market in India are the increase in the opportunity for new investments, the rise in the GDP rate, the growing per capita income, massive population, and high ownership capacity. Therefore, it’s expected that once the Tata Nexon is rolled out to the market, its sales will surely be on the rise. The number of car users will therefore increase to over 200 million. This is the share of the market in which the Tata Nexon will thrive upon once it’s rolled out (Becker, 2014).

Market Position

This is the current market standing of Company enjoys and will therefore be used as a gateway mechanism for launching the Tata Nexon. The company’s primary target market is within its backyard, and therefore, while using this as strength, it will be able to increase its sales and subsequently debut to the global arena by launching the car in Europe and other Asian countries. To position itself effectively into the already flooded market, more aggressive ways of marketing the product will be adopted.

The fact that the market has remained competitive is not ignored, but the marketing is strengthened by the fat that Tata Motors has been in the limelight for quite sometimes now and will therefore use this as strategy to enter into the other markets, and achieve market expansion of market from the existing 23% to 30% within the first quarter. The venture into affordable luxury car therefore increases the market base for the company (Singh, 2014).

Value Proposition

Tata Nexon is built to withstand all the conditions of the roads, give comfort to the riders and deliver to the expected level. While undertaking to satisfy all these needs, the car will be available at affordable rates to the growing middle class within its target market and other global markets. Therefore, customers have found value for their money and should not look further. With Tata Nexon, the value for money is indeed assured.

Accessibility Statement

The 4ps of product, place, pricing and promotion are adopted. Accordingly, our product is specifically designed so as to meet the needs of the growing middle class. The pricing of the car will be done in a way which is affordable to the targeted middle class. The car will be made available to the customers on order, and delivery will be done to the customers once an order has been placed. Promotions for the car shall be done in the televisions, show rooms, magazines and social media. With all these put into place, the accessibility and marketing mix for the car will be achieved.

Communication statement

A multifaceted communication models shall be adopted by the company in marketing and conducting the sales for the car. The print as a result, the will be use of print, media and the television networks. This is aimed at achieving maximum reach out to the targeted customer base (Tata Motors, 2018).

References

Becker-Ritterspach, F., & Bruche, G. (2012). Capability creation and internationalization with business group embeddedness–the case of Tata Motors in passenger cars. European Management Journal, 30(3), 232-247.

Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102-119.

Motors, T. (2014). 69th Annual Report 2013–2014. Accessed March, 3, 2018.

Samli, A. C. (2012). International consumer behavior in the 21st century: impact on marketing strategy development. Springer Science & Business Media.

Singh, N., & Shalender, K. (2014). Success of Tata Nano through marketing flexibility: A SAP– LAP matrices and linkages approach. Global Journal of Flexible Systems Management, 15(2), 145-160.