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Tata Motors Shamoon Saeed November 5th, 2010, Marketing 100 Tidewater Community College Instructor: James Womick
the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). The company is establishing a new plant at Sanand (Gujarat). The company is the world's fourth largest truck manufacturer. services and spare parts network comprises over 3500 touch points. and among the top three in passenger vehicles with winning products in the compact. The company's dealership. sales. It is the leader in commercial vehicles in each segment. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand). Established in 1945. Thailand and Spain. midsize car and utility vehicle segments. a business comprising the two iconic British brands that was acquired in 2008. Tata Motors also distributes and markets Fiat branded cars in India. . since the first rolled out in 1954.2 Tata Motors. with consolidated revenues of Rs.Target Customer Company Background Tata Motors is India's largest automobile company. has also emerged as an international automobile company. Through subsidiaries and associate companies. Lucknow (Uttar Pradesh). Pantnagar (Uttarakhand) and Dharwad (Karnataka). it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat power trains. Among them is Jaguar Land Rover. Tata Motors has operations in the UK. Pune (Maharashtra).519 crores (USD 20 billion) in 2009-10.9 million Tata vehicles ply on Indian roads. 92. Over 5. Tata Motors. Tata Motors' presence indeed cuts across the length and breadth of India. and the world's second largest bus manufacturer. South Korea. Following a strategic alliance with Fiat in 2005.
the United States of America is the country that has the largest economy and biggest products and services market. Thailand. Tata Nano is going to represent itself to be green product from the fuel efficiency composition. the ³cheap price´ would be Tata¶s best strategy to enter other countries¶ market in introduction stage. In addition. This has affected to US consumers to alter their consumption patterns by spending less money such as postponing purchases new cars. and it shows itself to be the cheapest car in the world. Spain and now has there eyes set for the US. it is attracted to families with four.3 Target Market Tata Motors has operations in the UK. it also has the efficiency with safety system and modern model which could attract American people in no doubt. and the price is the most powerful benefit of Tata Nano in the whole market. South Korea. eating out less. Also. Tata Motors tries to place Tata Nano as a people¶s car in worldwide automobile market. According to Consumer Trends in US (2008). For expanding to new market. Tata Motors has always been targeting to lower income group. the first-time car buyers or fresh graduate and second-hand car owners. The Tata Nano is the cheapest car in the world.500 for 1 unit. Tata Nano will be replacement for their 2 wheeler or a new car at a price of 2nd hand car. Especially. it could powerfully compete with existing rivals and penetrate their market without difficulties. Tata Nano is the low-cost car that clearly intends for the mass market. . Accordingly. which costs only USD$2. the main impact of US inflation has been to reduce the amount of income available to many US consumers.
000. and they just go to dealer after they choose what they need. The car¶s opinion can be selected by the customers online. . |Model |Basic (STD) |Deluxe (CX) |Luxury (LU) |Price |$4. Therefore.500 |$5. consumers can also download form from this website. it could be highly benefit for Tata Nano to compete with others in United States.com. the price for Tata Nano could be under $6. It can be not only convenient. it could have some special services such as customize.000 |$4.000 |Margin |15% |17% |20% | | | | Tata will have online shop for its cars as a direct marketing channel.500 plus the shipment and other expenses as $1. It shows that Tata consumers would have the convenient procedures for buying Tata Nano but booking fee might be added from regular price as usual. Additionally.4 As has been mentioned. the Nano¶s price in US market could estimate as the original price in India $2. In addition.500 per car. if there is a newcomer who want to fight with Tata Nano¶s price. but also save expense for Tata Motors to operate retail stores. Tata Nanos will be available in online channel for booking cars through its website which is Tatanano. Thus. Also. it also might add the cost of developing cars which has to achieve the standard of US regulation. However. company can use pricing strategies for competing by decreasing original price in maturity stage because Tata already has got high range of margin.
France. Also. Germany. but has shrunk to about 20 percent in today's world (Tardiff 394). This drastic change has occurred by the booming economies in such nations as Japan. Ford. By the end of 19th century. producing 21 percent. and Canada . There are more than 400 million passenger cars alone on the roads today. with the Japanese industries coming in second. General Motors. Condition of Auto Market There is no industry more present in the worldwide community than the automobile industry.. consumers can book and buy Tata¶s products from the retail stores and dealership. The US auto industry "sales totaled $205 billion. which account for 23 percent of the world's motor vehicle production in 1997. Germany produces 9 percent. the United States was home to more than 90 percent of the world's automotive industry. Spain. and other nations. Canada. but that number dropped sharply to 23 by 1917. Customers might negotiate with salesmen in car dealers because they purchase products from corporation at a negotiated price. During the early part of the twentieth century. and economy of the people and nations that manufacture and demand them. the industry has grown into a billion dollar industry affecting so many aspects of our lives. France. and Chrysler make up the Big Three. The Tata¶s dealerships will be located in the target center of efficient consumers. Italy. or 3. and today the Big Three dominant the market.5 People who interested in Tata product could ask information or be able to book Tata¶s cars through the hotline phone which is called Tata¶s Call Center all of USA. culture. South Korea. there were about 500 auto manufacturers.3 percent of the total Gross Domestic Product" (Tardiff 394). The automobile has changed the lives. Ever since the late 1800s when Benz and Daimler in Germany invented the first "modern" car.
000 car-related businesses. The US has three main auto manufacturers. Japan has five major producers. Fuel mileage of the Tata car is good. and rely heavily on non-price competition (Womack 154). Less service stations. especially in the US which registered 141 million cars in 1988. which includes it's 500. creates 12 million jobs (Broughty 290). like sedans. Conclusion FINDINGS of the study The price of the TATA car is reasonable. TATA cars suits middle income group people. The automobile is clearly an oligopoly. two-doors. In the US alone. Spare parts are easily available. Sport Utility Vehicles (SUVs). you can see how great the similarities are. the second highest. Each company produces a new line of cars for each model annually. People rely on cars for so many things that life without one seems impossible. Each of these companies produce differentiated versions of the same product.6 each produce 5 percent of the international market in 1997. There are many different types of cars. the auto-industry. whereas Japan. only registered 30 million (Broughty 96). The auto industry can still thrive even though their products are so similar because the demand for cars is immense and continuous. and fourdoors. Easy to maintain. as does Germany. station wagons. have control over their products' prices. but by comparing models between two competing companies. . but each company's control of the market has gradually diminished because of rising foreign competition.
Chicago: The Institute for Research.7 Need of more attractive merchandize display References Consumer Trends-www.trendwatching. Jones." US Industry Profiles. James P.. The Machine that Changed the World." Career Information Center. Joseph. New York: MacMillan Publishing Company. Gordon.. Online. New York: Gale Research. New York: MacMillan Library Reference USA. ed." Hoover's Online.com McBride. 1996 Tardiff. 1999 Womack. Daniel T. 1990 Farr. Max. 1998 Broughty. "Automobile Manufacturing. Internet. 2 vols. November 2001 ." Motor Vehicles and Motor Vehicle Equipment. and Roos. "Automobile Industry. Careers in Transport. James. Daniel.
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