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Tata Nano
Tata Nano
Tata Nano
MARKETING
PLAN
Submitted by:
Hardeep Singh
A00137210
1.0
EXECUTIVE SUMMARY
Tata Nano is the least expensive auto on the planet. It is sold in home
nation India around Rs 1-lakh i.e. around USD 2000. It is produced by Tata
Motor Limited, the biggest vehicle organization in India. It's Chairman, Mr
Ratan Tata imagines that Tata Nano to end up a "People's auto" which is
moderate by nearly everyone. Tata Nano was initially propelled in India on
first April 2009 and anticipated that would be in Indian market by July
2009. Since propelling, it has made a colossal buzz all over India. Inside
the initial two days of dining, it has gotten 5500 booking. The figures
continue expanding each day since the starting.
What makes Tata Nano so shoddy? Essentially, by making things littler,
lighter, get rid of shallow parts and change the materials wherever
conceivable without trading off the security and ecological consistence. It
is said that Tata Nano has preferable millage over Toyota Prius and same
gas discharge as a bike.
Tata Nano will be foreign made to Malaysia by Tata Industries in parts. It
will be amassed in its two plants i.e. in Shah Alam, Selangor and Pasir
Gudang, Johor Bahru. There are four dispersion focuses in Peninsular
Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata
Nano autos will be conveyed through these appropriation focuses as it
were. Request can be made vide these circulation focuses or its site.
There are three sorts of Tata Nano auto accessible i.e. Tata Nano, Tata
Nano CX and Tata Nano LX. Notwithstanding, because of hot climate in
Malaysia, just Nano CX will be conveyed to Malaysia and will be sold here.
The offering cost of Nano CX in Malaysia is RM 13,704 for each unit. It is
evaluated that gross benefit for the main year would yield xxx, second
year xxx and third year xxx. Evaluated regularly scheduled payment
installment is xxx for a long time's period. With this value, the objective
market is wide which incorporates those with salary RM 2000 every
month, understudies, female specialists and bikes' riders.
2.0
SITUATION ANALYSIS
family. Hence, because of this Tata Nano was made as a more secure type
of transport.
As one of its goals is to wind up an Indian business combination working
in numerous nations, Tata Nano will be presented in Malaysia.
2.1
Market Summary
2.1.2
Positioning
Tata Nano will position itself as the world least expensive auto but then does
not trade off the quality, wellbeing and environment. This situating will be
accomplished by utilizing Tata Nano's focused edge: businesses encounter
from the parent organization Tata Motor who has been in vehicles enterprises
(business, travellers and utilities) since 1945. Tata engine has great provider
producer association with more than 100 segments.
2.1.2 Demographics
Population, demographics, rural urban, vital statistics from Malaysian auto
report.
2.1.4 Geographics
Tata Motors has targeted the urban area in Malaysia. This is going to be
Kuala Lumpur and Johor Bahru.
Malaysia.
2.1.5 Distribution review
Much the same as in India, Tata Nano will be situated as a reasonable auto
even in abroad markets. 'Simple to-amass packs' will be foreign made from
Tata in India. The auto then will be assembled at pre-characterized areas.
The proposed areas are Shah Alam, Selangor and Pasir Gudang, Johor Bahru.
It will be then redistributed to showrooms that will be set up in view of locale.
30 deals workplaces will be opened all through Malaysia.
2.1.6
Competitor review
The main competitors are Proton, Perodua, Toyota and Honda. The table
below indicates
other industries
Brain drain into other countries
Comfort zone mentality
During the past four decades, Malaysia has transformed itself from a
commodities-dependent
backwater
into
major
world
source
for
Opportunities
The opportunity for private-sector-led growth will improve as the
government continues divestment of state shareholdings in order to raise
funds to narrow the budget deficit.
Threats
Wages are higher in Malaysia than in a number of its competitors, such as
China and Vietnam, which could be a long-term hindrance to economic
expansion. To maintain its competitive edge, Malaysia needs a steady
Strengths
Standards of corporate governance in Malaysia have greatly improved
since the Asian financial crisis at the end of the 1990s more so, in fact,
than in many neighbouring countries. Foreign companies, or at least
foreign manufacturing companies, looking to do business in Malaysia will
continue to be welcomed with open arms, with the government offering
lavish tax breaks and concessions.
Weaknesses
State subsidization of prices will remain a peripheral but persistent part of
daily economic life in Malaysia. Doing business in Malaysia will always, to
some extent, mean dealing with the politically well-connected. Big
construction projects and big contracts for foreign construction firms
are unlikely to be as much of a priority for Malaysias government as they
were under the previous administration of former prime minister Mahathir
Mohamad.
Opportunities
The opportunity to invest in Malaysian state assets could improve. The
government, if it sticks to its word, will conduct its biggest ever
divestment of state shareholdings. Malaysia is eager to compete globally
Strength
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. The benefit is that Tata has been able to
exchange expertise. The company has had a successful alliance with
Italian mass producer Fiat since 2006. This has enhanced the product
portfolio for Tata
exchange.
which
is
often
not
natural grip with supporter help and better air admissions that will
decrease fuel utilization by up to 10%.
Threats
Other competing car manufacturers have been in the passenger car
business for 40, 50 or more years. Therefore, Tata Motors Limited has to
catch up in terms of quality and lean production. Sustainability and
environmentalism could mean extra costs for this low-cost producer. This
could impact its underpinning competitive advantage. Obviously, as Tata
globalises and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle
segments, it has left itself open to 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 the Indian market include Ford, Honda and Toyota. In fact,
the entire Indian market has become a target for other global competitors
including Maruti Udyog, General Motors, Ford and others. Rising prices in
the global economy could pose a threat
fuel which is becoming expensive globally and within its traditional home
market.
2.3
Objectives and issue
We have set aggressive yet achievable objectives for the first, second and
third year of market entry.
First year objective (July 2017 to December 2017)
We want to achieve 25,000 units of sales gaining . market share %
get from market size
Second year objective (JAN 2018 TO DEC 2018)
We want to achieve 10% increase in quarterly basis (RM 48,600)
Third year objective (JAN 2019 TO DEC 2019)
We want to achieve 10% increase in quarterly basis (RM 53, 460)
2.0
There are three variants in the Nano range: Nano, Nano CX and Nano
LX
The car has achieved its low price by minimizing costs on unnecessary
luxuries, the basic Nano comes without front and rear fog lights,
without a heater or air conditioning, without anti-lock brakes, only one
single windscreen wiper, manually operated windows, manual steering
with no air bags, tiny 12 wheels, plastic body parts joined with adhesive
instead of more conventional metal and welding and a two cylinder 623
cc engine that provides a massive maximum speed of 65 mph (around
105 km/h).
Among the features of the car are:
a) Stylish and comfortable
The Peoples Car, designed with a family in mind, has a roomy
passenger compartment with generous leg space and head room. It
can comfortably sit four persons. Four doors with high seating position
make ingress and egress easy.
Yet with a length of 3.1 metres, width of 1.5 metres and a height of 1.6
metres, with adequate ground clearance, it can effortlessly manoeuvre
on busy roads in cities as well as in rural areas. Its mono-volume
design, with wheels at the corners and the power train at the rear,
specific
maker
or
merchant.
Marking
is
investing
items
and
cost. The selling price for the Malaysian market is RM13,704.00, which is
inclusive of standard accessories, but exclude road tax (RM70.00),
registration fees (RM150.00), number plate (RM50.00) and ownership
endorsement fee (RM50.00), sales tax (RM1370.40) which amounted to
RM320.00. The On-The-Road price will be RM15797.40. These prices reflect
a strategy of taking a share from established competitors, such as Perodua
s model of Kancil and Viva.
3.5.1 Setting the price selecting price objectives
Tata Nano Malaysia (TNM) has set major three objectives in its effort to
position itself in the Malaysia Automotive market.
distribution costs will fall as sales volume increases and the low price of
Nano cars will help to keep out competition and maintain its low-price
position. The low-price entry will provide Malaysians consumers with a
viable alternative to Perodua Malaysia second National car. Further
liberalization is expected as Malaysia implements the ASEAN Free Trade
Area agreement, which commits the Malaysia Government to scrap
foreign car taxes.
4.0
PROMOTION STRATEGIES
4.1
about what are the objectives we need to achieve. We know as above, our
missions are to promote Tata nano in Malaysia and increase the sales
quarterly. Tata Nano is very new for Malaysian, they feel fresh with this new
brand and concept of this car. Tata Nano will get into Malaysia market in July
2016.
So first of the objective for promotion strategies are aims to create brand
awareness and concept/knowledge of this new car Tata Nano. This is the
cheapest car in the world and
short time. But still is the new brand for the Malaysians, so we do the
advertisement and organize the event or campaign in sufficient detail to
establish the good brand attitudes. Brand awareness is important to provide
a
Why we establish this tag line? Because this is make all the Malaysian too
easy to remembered Tata Nano and feel happy all the ways with Tata Nano.
Tata Nano is safety and you can travel everywhere by Tata Nano with your
family or friends with fun, but you just need to pay all of this at lower price
Pay Less & Get More.
Beside that we can enjoying special fun with Tatanano, our earth also will
feel happy with Tatanano because Tatanano also is the environment friendly
car.
4.3
Advertising Program
We aim to inform Malaysians this is the cheapest car in the world and
persuade Malaysians to buy Tata Nano due to this car is safety, useful, all in
good quality and also environment friendly by developing an advertising
program.
4.3.1 Online Advertisement
Initial step we begin before dining Tata Nano, we do the online notice. Tata
Nano made a Web website www.tatanano.com on March 2016 to better
speak with the clients. In the Web website, we posted the photograph
classifications and recordings to give clients the data and extraordinary
elements of Tata Nano and bring them inside the organization.
Notwithstanding photographs and recordings, the site connections to late
news about Tata Nano and space for open input.
Other than that, Blogs have turned into an imperative outlet for informal
which are routinely redesigned online journals. Online journals are uniting
individuals with normal interests. They fluctuate wide and can impact an
inconceivable group of onlookers because of numerous web clients have
perused Blogs. We can build up the blog arrange and painstakingly observing
to discover what's on individuals' psyches particularly the potential clients.
This is a least expensive and great approach to develop mark mindfulness.
4.3.2 Television Advertisement
Television advertisement is very expensive but this is the most
powerful to perform the Tata Nano to the public by demonstrating Tata Nano
attributes
and
persuasively
explaining
their
corresponding
consumer
are 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 every day. So this is good market coverage. From here, Tata Nano
can get the broad acceptance and good reputation from Malaysians.
Newspaper advertising is inexpensive.
4.4
Marketing Campaign
This Marketing campaign is based on every four months:
crusade is 'Great future with Tata Nano'. Explanation behind this advertising
effort is one of our objectives are understudies, for example, crisp graduate
who simply land the new position furthermore the universal understudies.
New graduate need the transportation in their working life however they
can't bear to purchase the excessively costly auto; global understudy simply
requires the auto which is economy and utilizing it as a part of brief period
around 2-3years for their understudy life in Malaysia. This is least expensive
cost by occasion or battle in the grounds.
In September and October, Malaysians will praise two major celebrations
together, there are Hari Raya Puasa Aidifitri and Deepavali. So we can
concentrate on lower pay amass with family particularly those are originated
from Malay family or Indian family. Utilize the mail, phone, fax, email to
discuss specifically with them. Base on recorded, a greater amount of the
Malay or Indian will purchase the auto before celebration. 'Raya with Tata
Nano' can be the subject for our crusade at this period, and advance them
Tata Nano is least expensive and wellbeing.
4.4.2 Marketing Campaign for November 2016 to February 2017
In November and December, Malaysia have the Mega Sales due to
Merry Christmas and New Year in the end of the year at whole Malaysia so
that have many people will go to shopping. We can organize the event at
shopping centers in Malaysia such as KLCC, Midvalley, Berjaya Times Square,
and Sungai Wang by providing product display and banner.
On January and February, most of the employees in Malaysia will get the
bonus in this
Chinese New Year is at February. Send the brochures to the small and
medium company or office and do the
Follow
by
mail,
telephone,
fax
to
developing
effective
communication.
4.4.3 Marketing Campaign for March 2017 to June 2017
We will do the street appear at each state (entire Malaysia). We can have the
street appear at the focus market, for example, all market at all the state.
Have many individuals will go to advertise early morning to purchase the
vegetable, take the breakfast or purchase the essential things. A large
portion of them are ladies or housewife who might be originated from the
lower or medium pay family. Some of them go to Pasar by bike or by
transport. There are our objective markets. We can elevate Tata Nano to
them, for example, Tata Nano is the least expensive auto on the planet, Get
the Tata Nano to be second auto for their relative particularly for their
youngsters or senior parent, 'Simple existence with Tata Nano'. Housewife or
mother can go to Pasar or anyplace by Tata Nano superior to bike or by
transport for finish their day by day matter all the more viably. At the point
when the ladies get the news, they will pass this news to their companion
quickly. This will help us to advance Tata Nano adequately in the nearby
society. At the street appear, individuals likewise can get the involvement
with Tata Nano by have the chances to drive the Tata Nano auto before buy
it.
5.0
5.1
Customers
Physical Flow
Transporters,
Warehouses
Assembly Workshop
At Malaysia
Customers
From the diagram, can know that Tatanano will send the paths to the
Malaysia after received the order from the sales office. After that, we will
assemble a car at the workshop. Finally, send to the customers directly. From
Payment Flow
Banks
Sale Office
At Malaysia
Banks
Customers
Information Flow
Sale Office
At Malaysia
Customers
Customers can get the information directly from Tata Motor such as
new product, price development and so on. Tata Motor can more
understanding customer's needs when receiving customers, response calls
and mailings or through internet blog. If customers have any need or
complaint, we can satisfy them immediately by deal with customers directly.
5.5
Promotion Flow
Marketing Campaign/Event
Sale Office
At Malaysia
Media
Customers
100000
90000
80000
70000
60000
fixed cost
50000
total cost
40000
total revenue
30000
20000
10000
0
1000
2000
3000
4000
5000
6000
7000
unit
break
even
3369
Monthly
sales
break $46,168,
even
776
6083
Average
per
unit $13704
revenue
Average
per
unit $8,954
variable cost
Average per unit fixed $2630.28
cost
Estimated
fixed cost
6.2 Sales forecast
monthly $16,000,
000
Sales (unit)
coming years, the advertising cost will have planned around 3-4 percent of
aggregate deals.
Table: Marketing Expense Forecast
Advertisement
- Newspaper,
3rd
4th
1st
2nd
Quarter
Quarter
Quarter
Quarter
2017
2017
2018
2018
2`000,000
1,500,000
1,200,00
1,200,000
Billboard and
-
Magazine
TV advertisement
0
5,000,000
4,000,000
3,500,00
3,500,000
75,000
150,000
Online
100,000
100,000
0
75,000
advertisement
Radio
200,000
200,000
150,000
advertisement
Marketing campaign
- Grand Launching
7,000,000
event
Graduation
2,000,000
campaign
Hari raya aidil fitri
2,000,000
campaign
Depavaali
2,000,000
campaign
Christmas
2,000,000
campaign
Chinese new year
2,000,00
0
3,000,000
- Roadshow
Direct marketing
- 1-800 toll free
- Web site
Other
- Printed material
150,000
500,000
100,000
75,000
100,000
75,000
100,000
75,000
1,000,000
800,000
600,000
600,000
Total
19,950,00
10,775,00
7,700,00
8,700,000
Percent of sales
0
8.09%
0
3.75 %
0
3.12%
3.97%
(brochure, banner,
etc)
Milestone
Start
Marketing
date
1/02/201
manager
Departm
Marketing
ent
marketin
manager
Promotion
Promotio
and
advertising
advertisi
manager
Promotion
ng
Promotio
and
billboard
advertising
advertisi
advertisement
TV advertisement
manager
Promotion
ng
Promotio
plan
End date
1/03/2017
completion
1/02/201
15/03/201
and launching
Newspaper,
magazine
and
1/07/201
30/06/201
1/07/201
30/06/201
Budget
0
500,000
5,900,000
16,000,000
and
and
Radio
1/07/201
30/06/201
advertisement
and
advertising
advertisi
manager
Promotion
ng
Promotio
and
advertising
advertisi
7,000,000
manager
Marketing
ng
marketin
g
Sales
700,000
and
and
Grand launching
06/07/20
Graduation
17
01/08/20
31/08/201
2,000,000
manager
Sales
campaign
Harirayaaidilfitri
17
1/09/201
7
30/09/201
2,000,000
manager
Marketing
marketin
campaign
Depavaali campaign
7
1/10/201
7
31/10/020
2,000,000
manager
Marketing
g
Marketin
7
10/11/20
17
10/01/201
2,000,000
manager
Marketing
g
Marketin
year campaign
Roadshow
17
01/03/20
8
01/06/201
3,000,000
manager
Sales
g
Sales
18
manager
Customer satisfaction
Marketing
director
Marketing
manager
Sales
manager
Promotion
and
advertising
manager
References
http://choubeyrajj.blogspot.ca/2013/07/tata-nano-marketing-strategies.html
https://www.linkedin.com/pulse/analysis-marketing-strategy-tata-nanokumar-utkarsh
http://www.motortrader.com.my/news/category/market-reports/
http://paultan.org/2016/01/21/2015-malaysia-vehicle-sales-market-review-bybrand/
http://www.heritage.org/index/country/malaysia