DASAR-DASAR PEMASARAN

Member :
1.Rahimma Febriani (C1B019019)
2.Oktania Wulandari (C1B019030)
3.Deri Arianto (C1B019035)
4.Doni Idhul Adha (C1B019079)

COMPANY CASE CH.10

1.How do Tata Motors’ marketing objectives and its marketing mix strategy affect the
pricing of the Nano?

Answer :
• Survival - Tata Motor set survival as their major objective. To keep a plant going they set a
lowprice on Nano considering that survival is more important than profit. As long as
theirvariable cost and some of the fixed costs are recovered from the price they will stay
inbusiness.
• There are three most common pricing strategies used the manager, each of these strategy
satisfies certain objectives, below are explain each of the strategy and objectives it is able
to achieve. Pricing is called skimming pricing when is it charged above the industry regular
prices and it is kept on higher side, objective of such pricing is to recover early cash from
the market or serve a certain niche in the market, moreover such pricing is also used to
provide prestigious image of brand
 2. Discuss the factors in the Indian environment that have affected pricing
decisions among car manufacturers like Tata Motors.

Answer :

• The first factor of the 'PESTEL analysis' is the political influence on the company. The
positive political effect for Tata Motors is the attitude of several Indian state governments
towards the establishment of Tata Motors factories.
• Second, the 'PESTEL analysis' discusses economic effects. The economic factor affecting Tata
Motors is India's economic growth. Among the various sectors wages have increased and due
to increased competition in the banking sector, banks have become more lenient in lending
money to the public.
• The third factor is sociocultural, which differs from country to country. Tata Motors has to deal
with the popularity of motorbikes and scooters in India
3. Do you think Tata Motors will be able to maintain a competitive edge based on price?
What would have happened if other car manufacturers match the Nano’s low price?

Answer :

• Tata Nano is specially designed and manufactured for the middle class and lower
class people in India. The products offered are manufactured at a much lower cost
and sold to new markets earning huge profits for the company. Because Tata Nano
has successfully done this by manufacturing one of the most low- cost and efficient
vehicles. This eventually led automobile manufactures operating all over the world
to deliver cheap cars so the millions of people could afford their own means of
transportation. It restricted the amounts of profit returns for those manufactures but
small profit with increased customer loyalty and product demand served the purpose
fully.
4. What do you think of the Nano’s revised positioning as the coolest small car?

Answer :

• LACK OF PRACTICALITY

Two-wheelers are a nimble little vehicle that let people navigate through traffic easily,
while parking is rarely an issue. The same could not be said about the Nano. So, a major
issue with it was that it was not a motorbike.

• POSITIONING AS CHEAP

The automaker was under the misconception that the low price would be enough to
motivate people to buy the Nano. They did not account for their positioning it as a cheap
vehicle which, in India’s markets, translates to low quality.