Innovative marketing Strategy : TATA NEXON EV 2020

A report on

“Aspire To Go Green”

In partial fulfilment of the requirements of the course

Marketing Management

Submitted to

Dr. Mohan Agarwal

On 13.03.2020

Submitted By:

Vineet Kumar Mahra (19PGDM05A019)

Mobile: 9650995358 email: x19vineets@nsb.ac.in
Dilip Kumar (19PGDM05A009)
Mobile: 9425823654 email: x19dilipk@nsb.ac.in
Alok Kumar (19PGDM07A030)
Mobile: 8130891672 email: x19alokk@nsb.ac.in

NTPC School of Business (NSB)

(A unit of NTPC Education and Research Society)
Plot No. 5-14, Sector 16-A, NOIDA- 201301 (U.P.), INDIA
E-mail: nsb@ntpc.co.in; Website: http://nsb.ac.in/
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Acknowledgement

It was a great pleasure for us to undertake this project report. I feel highly doing the
project entitled “Innovative Marketing Strategy: TATA NEXON EV”

We whole heartedly express our sincere gratitude to Dr. Mohan Agarwal for his able
guidance and support in completion of project. His valuable suggestions & discussions during
class sessions and project preparation are the key ingredients for the project. Further the
concepts and marketing mantras provided by him and his worthy experience were core to
understand the dynamics of marketing in contemporary world.

We would also like to express our thanks of gratitude to NSB, PMI Noida for
providing all the facility that was required and opportunity

At last we also want to thank our batch mates for sharing thoughts and help for
completing project in limited time frame.

Kind regards

Group 09

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 Innovative marketing Strategy : TATA NEXON EV 2020

Table of Content

Content Page no

Executive Summary 4

Current Marketing Situation 5

Key Highlights Of Nexon EV 8

Marketing Perception Survey 9

Understanding Market Perception 11

SWOT Analysis 12

Objective And Issues 13

Marketing Strategies 14

Action Plan 15

References 17

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Executive Summary

Today world is looking into EVs as potential solution to environmental and health problems.
The market of EVs is rapidly growing all over the globe. India Also plans to replace its
carbon based vehicle to EVs. Experts view Indian market of electric cars worth 300 billion
dollars by 2030. In view of NITI Aayog recommendations and Paris Commitment
Government is desperate for every initiative and support for the sector.
Eyeing the potential TATA has launches its second electric car in cross SUV segment TATA
Nexon EV. It is proving to be a game changer for the industry and has potential to grab
market share and large revenue for TATA. Nexon EV is based on Ziptron technology and
features exceptional specifications which are hard to match.
Market perception makes it clear that people are well aware about EVs and ready to accept a
solution to environmental and health problem even at premium prices. However they are
reluctant on the factors about charging infrastructure and charging time and range of EVs.
Provided these issues are resolved customer perceive a great value for the product and see
long term value and benefits in fuel saving, maintenance cost, convenience and health.
TATA having huge experience in automobile and Indian market along with Nexon being
viewed as Environmental solution poses huge strength. Also conducive socio-political
environment opens up greater opportunities for Nexon. On the other side charging problems
and battery capacity is a huge weakness for EVs and other market player’s entry and change
in technology can prove as threat.

Marketing strategy employed must address all customers concerns and SWOT of the product.
Nexon EV is a product which has a segmented market among upper middle class
professionals who have environment concerns and reside in metro cities. Also early
technology accepters, frequent travellers and sports freaks are interested in the Nexon as their
potential partner in travel. Marketing strategy require to “Aspire Nexon as GO Green”
initiative by concentrated marketing strategy among segmented customers.
An action plan which can Project sustainability among the customers to make them
comfortable with new technology by assuring value and increased infrastructure is required.
A Brand Value must be reinforced in mind of customers By Environment EXPO online
Articles and extension promotion in social media platforms that must trend periodically.
Education to customer regarding features, developments and benefits are must to lure new
customers. Also taking first mover’s advantage and increasing sales discovering new markets
bulk markets must be done. Also keeping in mind current sales volume more focus must be
given on Social media and direct communication rather than endorsement and TV
advertisements.

TATA Nexon EV has all dimensions aligned which can set market and customers into an
“ELECTRIFYING JOURNEY”

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Current Marketing Situation

India is 4th largest and fastest growing automobile market in the world. Total of 34 lakh
units’ of four-wheeler car were sold in India in year 2019. The electric vehicles Industry is in
nascent phase around the world. In many developed economies, the growth of electric
vehicles was seen much rapid compared to India. The overall sale of four-wheelers EV in last
fiscal year was only 3600 units which witnessed 200 percent growth on year to year basis, but
the percentage of EV on road is very low as compared to Petrol and diesel car.

According to latest data published by Society of Manufacturers of Electric Vehicles (SMEV),

the electric vehicle (EV) industry has sold more than 7.5 lakh units in the year of 2018-19 and
registered a growth of huge 31.8 percent as compared to previous financial year.

The growth in Electric vehicle sale in the country is in line with the government’s
government vision to achieve 100 percent electric vehicles on road by 2030.

The total market size of electric car market size in India was at $71.1 million in 2017 and is
projected to reach 300 billion dollars by 2030, according to NITI Aayog. Government
schemes and subsidies are playing a major role in the growth of the Indian market. Also there
is a vide opportunity for varied range of Indian business of small and large scale as entire
value chain in manufacturing trading and services of electric automobiles

Indian Electric Vehicle Industry Size will be around $300 billion (Rs 20,00,000 crores) by
2030,. This is a massive opportunity for a wide range of Indian businesses for both large and
small as well as in entire value chain sector manufacturing, trading and services. So, there is
huge potential of EV in India.

EV sector is soon going to be an inevitable force to be ignored by any auto manufacturer.

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“Following are the manufacturers already present in EV 4 wheeler segment in market in

India.

 Mahindra and Mahindra

 MG ,
 Hyundai
 Tata Motors

Current market share of EV manufacturers during April- November 2019

Electric car sales in India during April-November 2019: Sales from April-November
Car (units)

Mahindra e-Verito 513

Tata Tigor EV 491

Hyundai Kona EV 280

Mahindra e2o 25

Total
1,309

Sales of EV Four wheeler in current year

Mahindra e-Verito
Tata Tigor EV
Hyundai Kona EV
Mahindra e2o

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Drivers of EV Market:
As per Environmental Pollution Index (EPI) 2018, In the environmental health category
India is among the bottom five countries and ranked 178 out of 180 in air quality
concerns. India’s carbon dioxide emissions grew by an estimated of 4.6% last year.
The PM 2,5 emitted by fuel-based vehicles, are harmful. To reduce the air pollution,
government has taken steps to shift from oil based fuel vehicles to EV.
India is would be jumping to BS VI emission skipping BS V standards. This decision is
due to environmental degradation, pollution levels increase, and health problems
caused by automobile pollution. This initiative is for cleaner environment by the
government and will boost further growth of electric vehicles in India.

Initiative taken by leading states in India for growth of EVs:

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Key Highlights of Nexon EV

By Managing Director TATA motor

“This is the launch of an ecosystem, which is the real need, not just another vehicle launch”

Recently, Tata motor has launched their new electric vehicle Nexon in India. It’s their second
electric vehicle after Tata Tigor EV. This is a compact and powerful cross SUV which is
based on ZIPTRON POWERTRAIN technology. EV Nexon has high capacity 30.2 KWh
lithium ion battery. Car is fully equipped with powerful and high-efficiency 129 PS
permanent-magnet AC motors which produce 245 Nm of instant torque and enabling to
accelerate from 0 to 100 kmph in just 9.9 seconds.

The Ziptron technology has efficient high voltage system, fast charging capability, long
range and battery with a warranty of eight years. Nexon EV covers long distance of more
than 312 kms on a single charge with zero emissions. Nexon EV will replenish 80% battery
capacity within 60 minutes when plugged into a Fast DC Charger. In addition, the Nexon EV
can be charged from any 15 amp plug point in eight Hours.

Nexon EV was unveiled in India on 19 December 2019.

Priced at Rs 15 lakh Rs 17 lakh

Color options: Signature Teal Blue, Glacier White and Moonlit Silver
Motor: it is powered by a 3-phase permanent magnet synchronous motor that delivers 129
PS and 245 Nm of peak torque.
Driving Modes: -- Drive and Sport
EV Battery: The motor is paired with an IP67-certified 30.2 kWh lithium-ion battery, which
can be charged through a couple of modes

Range: The ARAI-certified range of Tata Nexon electric vehicle is 312 km.
EV Variants: XM, XZ+ and XZ+ Lux.

Recently launched Market competitors of NEXON EV in segment are

 Hyundai Kona
 MG ZS EV.

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Market perception survey

For understanding EV market and user perception for electric vehicles we have used recent
extensive survey of Forth Lion which is a reputed private survey firm. This Bangalore based
Technology start-up Fourth Lion is best known for providing the data backup for Infosys
cofounder Nandan Nilekani’s parliamentary campaign. Also company has successfully
consulted many government surveys in past.

Methodology and date of conduct of survey:

Sample size n= 2,178

Margin of +/- 2.1 percentage points
error
Survey dates Aug 21-24, 2018
Urban/rural City, urban or semi-urban 85% / rural 15%
Sex Men 69% / Women 31%
Age 18-24 23% / 25-29 28% / 30-39 34% / 40+ 14%
State Delhi 23% / Maharashtra 17% / Karnataka 11% / West Bengal 8% / Tamil
Nadu 7% / Telangana 4% / Gujarat 4% / Andhra Pradesh 3% / Uttar Pradesh
3% / Kerala 2% / Haryana 2% / Chandigarh 2% / Rajasthan 2% / Bihar 1% /
Madhya Pradesh 1% / Punjab 1% / Odisha 1% / Assam 1% / Jharkhand 1% /
Jammu & Kashmir 1% / Himachal Pradesh 1% / Chhattisgarh 1% / Other 4%
Annual Under 6 lakhs 36% / 6-9 lakhs 28% / 10-19 lakhs 25% / 20+ lakhs 11%
income

Key highlights of survey:

 Drivers and vehicle owners have heard a ‘great deal’ about electric vehicles (68%),
especially in Delhi (81%).
 Drivers and vehicle owners are ‘very likely’ to consider purchasing an electric vehicle
(66%), especially in Delhi (77%).
 By a wide margin, drivers and vehicle owners say that ‘reducing air pollution’ (87%)
is the best reason to purchase an electric vehicle, not because they will ‘never pay for
petrol or diesel again’ (12%).
 Drivers and vehicle owners say that the cost of purchasing an electric vehicle is higher
(58%) than the cost of purchasing a traditional petrol or diesel vehicle (32%).
 Drivers and vehicle owners say that the cost per kilometer to drive an electric vehicle
is less than the cost of a petrol or diesel vehicle (53%).
 Drivers and vehicle owners don’t know whether the annual maintenance and service
costs for electric vehicles are higher (44%) or lower (46%) than a petrol or diesel
vehicle.
 Drivers and vehicle owners say that electric vehicles have a longer usable life (68%)
than petrol or diesel vehicles (24%).
 Drivers and vehicle owners say they are ‘much more likely’ to consider purchasing an
electric vehicle after learning that ‘electric vehicles reduce air pollution through zero
on-road emissions’ (72%).

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 Drivers and vehicle owners are ‘very concerned’ (74%) about the cost of petrol or
diesel fuel.
 Drivers and vehicle owners are even more concerned about air quality than they are
about the cost of petrol or diesel fuel. 81% are ‘very concerned’ about the air they
breathe compared.
 Most drivers and vehicle owners are personally affected by poor air quality. 76% say
‘my neighbors, nearby family, friends and I suffer from poor air quality every day’
(39%)
 The most common symptoms are ‘shortness of breath, trouble breathing’ (55%),
headaches (51%) and coughing (51%).

The biggest objections to electric vehicles are:

 Electric vehicles do not have enough charging stations or other infrastructure near
where I need it (59%)
 Electric vehicles do not have enough driving range (46%)
 Electric vehicles are too new and they haven’t worked out all the problems yet (32%)
 Electric vehicles take too long to recharge (31%)
 Electric vehicles aren’t available with all the same features and styles as traditional
petrol or diesel vehicles (26%)
 Electric vehicles are too expensive, especially considering their limited driving range
(25%)
 I don’t know enough about electric vehicles, including cost, performance, safety and
maintenance (24%)
 Electric vehicles cost too much to recharge (17%).

Key Findings:

 49% of drivers and vehicle owners say they would pay more for an electric vehicle
than a petrol or diesel vehicle IF the total cost over the life of the electric vehicle were
the same or lower than a petrol or diesel vehicle.

 35% say they would pay a premium for an electric vehicle because it’s better for the
environment and the air we breathe while 15% are not interested in owning or
purchasing an electric vehicle.

 59% of drivers and vehicle owners would pay at least 11% more for an electric
vehicle than a petrol or diesel vehicle.

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Understanding Market Requirement

1. Competitive Initial capital cost:

Customers have knowledge about higher Initial cost of Electric vehicles as compared to ICE.
However they are willing to pay a premium of 30% easily on environmental concerns.

2. Charging time & Infrastructure availability:

It has been observed in survey results that prime concerns were electric vehicles take too long
to recharge and requirement of more charging infrastructure near to his place.

3. Performance:
Customer wanted fully equipped powerful and high efficiency car which covers long distance
on one single charge.

4. Low operational cost:

Operational cost should be low as compared with traditional petrol/diesel car which is easier
to achieve. Also maintenance cost is lower for EVs.

5. After sale service:

Customer gives more weightage to better after sales service due to convenience.

6. Safety features:
Customer doesn’t want to compromise with safety features. So Nexon car must be full of
safety features like Air bag, ABS, etc.

7. Ambiance and exterior: From customer survey results, customer gives more weightage
to ambience and exterior of car.

8. Fuel economy:
Customer prefer car which gives more fuel economy.

9. Environment and health :

People are most concern about environment and health issue , even they are wiling to
pay premium for these issues as they believe they are suffering from city pollution and
heath is effecting due to pollution emitting vehicles.

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Strengths: Nexon has powerful motto of being a cause for environmental conservation and
health protection in metros. Also there is no cross SUV which can compete Nexon EV in its
segment. Also Tata has vast experience in selling and manufacturing 4 wheelers and has
experience in electric 4 wheeler segment through already selling TATA Tigor EV.

Weakness: Presently ICE vehicles have low initial cost, and there are only 350 charging
station available in highways which is very low compare to the potential market. Limited
range and charging infrastructure can result in slow acceptance of EVs and Nexon.

Opportunities: Government initiatives and international commitment will boost the sector
definitely. It also aims for complete transformation of sector. Also growing awareness and
environmental concerns emerge as great opportunities for EVs and a definite future.

Threats: Many players are planning to enter the EV market viewing the future, this can
increase competition. Also technology is changing fast, new name like hydrogen cell and
hybrid cars are buzzing. Also recycling of battery could be a big problem needed to be
addressed in future.

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Objectives

Creating dominant and sustainable market position in EV segment and delivering maximum
value to customer by providing environmental solution with total satisfaction by providing
reliable infrastructure and services.

Issues

 The lack of charging infrastructure is one major hurdle and most decisive factor for
sale of electric car in the Indian market. The inadequate availability of charging
stations, coupled with lack of adequate financial schemes for the growth of such
infrastructure, hinders the adoption of electric cars by customers.

 The New technology, limited Range and long charging time are also affecting the
customer towards adoption of EV in India.

 Consumers have low awareness about EV in India. The demand creation for EVs lies
with vehicle manufacturers.

 High price (14-15 lakhs) of Electric car as compared to traditional fuel car (5-6 lakhs)
is also one of the major issues towards adoption of EV in the country.

 30% Cost Premium compared to equivalent ICE engine cars.

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Market segmentation:
Geographic segmentation divides the market into geographical units such as nation’s states
regions countries cities. We want to emphasise on metro cities and state capitals where
awareness and environmental concerns are higher. Also infrastructure available and growth
for charging stations is huge.

Demographic segmentation we will focus on upper middle income group professionals with
age group between 30 to 45 years. Also Women’s increasingly being part of decision making
will be focussed.

Physiological segmentation will cover those who are adventure and sports freaks and give
much emphasis on environmental and health.

Behavioural segmentation will include frequent shorts distance travellers and technology
geeks who are front runner in accepting latest technology.

•Metro cities •Upper middle income

•State capitals •Age 30 - 45
•Working men &
women
Geo- Demo- •Professionals

graphic graphic
al al

Psycho Behavi
logical oral
•Adventure & Sports •Frequent travelers
•Environmental •Tech geeks
thinkers
•Health concisous

Target strategy: Concentrated marketing strategy may be used for above selected segment
so that optimal customer is reached in view of limited starting sale numbers.

Positioning: Will be positioned as a environment saver in the mind of customer with

environment focused tag line for marketing.

“Aspire To Go Green”
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Marketing action plan:

Projecting sustainability: Sustainability can be projected by creating believe in technology
and future prospects. It can be ensured by ascertaining value after some years and
eliminating treats of using new and untested technology for long.

• Buy back scheme for sustained value. In buy back scheme, 40% value of car to be
fixed for buy back of customer after 4 years of use. This will create believe and
advertisement and customer will be more interested to buy electric vehicle.

• Assured mobile charging and road side assistance: can eliminate fear and threat If EV
battery discharged on the way then we will provide Road side assistance facilities to
charge the battery.

Increasing infrastructure: Increasing Company owned charging infra structure will create
loyalty for brand and can be source of revenue also. Any how the future in automobile is EV
hence infrastructure can give strategic advantage to the brand.

• Installing fast charges at corporate work places

Person can utilize his time during working hours if fast charging facilities provided in
corporate office. Also bilateral tie ups will provide more visibility.

• Mobile charging facility for all customers with subsidy to TATA.

Charging infrastructure will be increased and subsidy will be provided to TATA

motors car owner while another owner can be charged on paid basis. This will
increase the trust of customer as well as brand value of tata motors.

Creating brand value: Brand value is immensely important for capturing growing market
segment. As current sale of EV is marginal however in future this market will grow at huge
pace and any slight change in market share will affect huge revenue. Hence company shoul
eye the long term market share of EVs.

• Environment expo can be used as a platform in metro city in the name of Go Green
Expo which will create brand value of EV in customer mind and position our product.

• Social media is very powerful platform for promotion. Advertisement on Face book,
Instagram & twitter are effective and economical.

• Creating experience partnership Godrej L’Affaire. It is a lifestyle experiential platform

by the Godrej Group, it will be used to demonstrate demo of Nexon and provide
world to mouth experience and promotion.

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• F1 circuit race competition are very popular in India which will further increase the
brand value Nexon EV among adventure seekers , sports lovers and people looking
for performance

Education to customer: Education of consumer can help customers in shifting toward

greener transport vehicles. Also people do not have proper reach to facilities and initiatives
taken by government and maximum benefits one can obtain from it. Providing those
platforms and information will give value to the customer and brand to TATA.

• Articles on Nexon for all trending search key words in Google. Articles may be
floated for gathering attention of new car buyers who uses net to finalize cars.

• Educating customers with Loan facilities and government and tax subsidies under
FAME II.

Discovering new markets: The current EV market as per reports ending November is very
small hence for boosting sale and visibility in market along with replacement of ICE vehicles
all sort of efforts for bulk market may be constantly followed up. This can give Boost to
production and scale of economics will benefit further price decline. Also these reputed tie
ups may enhance brand value and image of the product in the market.

• Fleet marketing with renounced customers like Taj hotels which can enhance value
to the brand and can be bigger customers.

• Targeting PSUs and harnessing government initiatives as already government has

made EVs compulsory in government offices which are a huge market to tap.

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References:

As on 13.03.2020
1. Marketing Management by PHILIP KOTLER & KEVIN LANE KELLER
2. https://en.wikipedia.org/wiki/Electric_vehicle_industry_in_India
3. https://auto.ndtv.com/news/only-1-071-electric-cars-sold-in-india-between-april-october-
2019-2155186
4. https://www.globenewswire.com/news-release/2019/12/11/1959361/0/en/India-s-EV-
market-to-grow-at-CAGR-of-36-till-2026.html
5. https://www.team-bhp.com/forum/indian-car-scene/217554-december-2019-indian-car-
sales-figures-analysis.html
6. https://www.thehindubusinessline.com/news/electric-vehicles-a-huge-opportunity-for-
india-niti-aayog/article28513792.ece
7. https://auto.economictimes.indiatimes.com/
8. Electric Vehicle Survey Fourth Lion
https://archive.indiaspend.com/wp-content/uploads/Electric-Vehicle-Survey-Fourth-Lion-
for-GSCC-Aug-24-1.pdf
9. https://www.pluginindia.com/blogs/reducing-air-pollution-best-reason-to-buy-electric-
vehicles-not-rising-fuel-cost-survey-reveals

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