Individual Report Understanding Markets and Buyer Behavior Module Number P58214 µTATA NANO EUROPA¶ Market Analysis
and Strategies for 2011
BUNNY MENRA 10016309
...8 CONSUMER BUYER PERFORMA«««««««««««««««««««««8 COMPETITIVE ANALYSIS««««««««««««««««««««««««...................9 CONCLUSION««««««««««««««««««««««««««««««9 APPENDICES««««««««««««««««««««««««««««««10 REFERENCES«««««««««««««««««««««««««««««................INDEX OVERVIEW OF COMPANY AND PRODUCT««««««««««««««««3 CURRENT MARKET SCENARIO«««««««««««««««««««««.............................................4 MARKETING FOR NANO EUROPA««««««««««««««««««««6 IMPORTANT MARKETING ANALYSIS FOR EUROPA««««««««««««7 SWOT ANALYSIS...........7 PEST ANALYSIS««««««««««««««««««««««««««««.........15
The model will be highly upgraded to meet EU safety and emission standards and is likely to cost 4000-5000 GBP in UK. the $2. The company is the world's fourth largest truck manufacturer.autocar. £1. 2009).490. electric power steering and twin airbags (www. the tiny car with the even tinier price-tag. 3
.com. A triumph of homegrown engineering. It is aimed primarily at Indian Domestic market.2008). midsize car and utility vehicle segments. In January.uk. 2008 Tata Motors launched Tata Nano in India.imaginmor. It is the leader in commercial vehicles and among the top three in passenger vehicles. It features an all-steel body with an overall length of 3300mm.com). 2009). 4 passengers. which will produce around 60bhp. Tata Motors now aims to launch a new model of Nano for developed markets.economictimes. improved fuel economy and reduced CO2 emissions. There were great expectations from Tata Nano. Since first rolled out in 1954. thought Nano would expand nation¶s car market by 65% (www. but far shorter than any contemporary European supermini." (Source: www. the world's second largest bus manufacturer and employs 24. Tata Nano is a small. The car rides on 14-inch alloys and has traction control.co. Tata Motors has products in the compact. This new model is called Tata Nano Europa. low cost car built by the Indian company Tata Motors. In 2008 the Financial Times reported: "If ever there were a symbol of India¶s ambitions to become a modern nation. the least expensive production car in the world. The Europa will get a five-speed manual box (the Indian version is four-speed) to allow for longer gearing.200 (¼1.com.indiatimes.186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity. with consolidated revenues of USD 20 billion in 2009-10. This makes it around eight inches longer than the original Mini. It is an exemplary example of Gandhian Engineering. 2008). R. This export version of Nano was first displayed at Geneva Motor Show in 2009 (Alborz Fallah. It will be powered by a 1. An Indian rating agency CRISIL. it would surely be the Nano.A.ft.000 workers. 2009).OVERVIEW OF THE COMPANY AND PRODUCT Tata Motors is India¶s largest automobile company.0-litre three-cylinder engine. a concept involving deep frugality and a willingness to challenge conventional wisdom (Mashelkar. Tata Motors has produced and sold over 4 million vehicles in India (www.
SWOT ANALYSIS IN CURRENT SCENARIO Strengths: Cheapest car Stylish look Eco friendly Fuel efficiency Weaknesses: No AC in standard model Window wind down by hand Manual steering No air bag Body made of sheet metal and plastic Plastic and adhesives replace welding 624cc 2 cylinder engine gives speed of only 43mph
Opportunities: Low maintenance World wide appeal Cost control Parking space
Threats: Traffic congestion Security not very high Prices may rise in future Competitors may arise
(Tata Motors Group. 2008)
. The car was highly publicized and promoted even before the actual launch in market. It sold over 200K units in 2009.CURRENT SCENARIO FOR TATA NANO In India Tata Nano was launched in 2008.
5. 3. Company current strategies in India can provide a base for ideas. The car website recorded exceptionally high number of hits which were 300 million hits.K and Europe in 2011. Nano Capsule were all received by people wholeheartedly. 2. 2. 2. psychographics. Booking forms costs only around 3-4 pounds. Pricing strategies were so efficient that before actually bringing the car to market total bookings of 203000 were recorded. PROMOTION: 1. Nano Europa is set to launch in U. PLACE: 1. Can be booked starting with 2500 rupees only which is just 34 pounds. Nationwide launch. Promotional campaigns like advertising competition. cultures and regulatory factors. AC version costs 148000 rupees which equals 2000 pounds. 3.
. The product is new and is to enter its market in coming year. 2008. As far as Europa is concerned it is a new product it was showcased in Geneva Motor show but that is its only public contact till now. 2008). 6. but company will have to keep in mind the differences in terms of geography. blessings for Nano. The product was showcased for first time in Auto Expo (Delhi) in 2007 and later in 78th Geneva Motor Show in March. on the day of its launch. 3. The deluxe version costs 172000 rupees equaling 2300 only 2500 pounds. 4. Product available through agents as well as can be booked online. Finances are easily available from number of banks for buying Nano. (Tata Motors Group. Non AC standard version costs 123000 rupees which is around 1700 pounds.Marketing mix used by Nano in its current scenario: PRICE: 1.
. Since this is a clear case of a new product entering a new market there is requirement of stringent market analysis and proper strategy. fundamental analyses of trends in market environment. objectives. Formulation of marketing strategy. pp: 565).Company needs to have a proper marketing plan before it enters a new market.
3. Development of plan for implementation and control.
5. The marketing planning process consists of organization¶s overall strategy. Development of marketing objectives relative to performance. competitive strategies and identification of target market segments.
(Simkin et al. company SWOT analysis. Assessment of marketing resources and opportunities.MARKETING FOR NANO EUROPA Tata Nano Europa is set to hit UK roads in 2011. Implementation of marketing plan.
4. Strategic models available in literature offer different methodologies for positioning in a new market (Azzone et al. Market plan is a systematic process involving assessing of resources. 1. 2003). 1994. opportunities and then developing a plan for implementation and control.
by investing strategically in key areas. customers. opportunities and threats. SWOT ANALSIS The most basic analyses and indeed the most important is SWOT analysis. 2007). market trends. Firms can convert weaknesses into strengths. SWOT analysis is a tool for a company to identify its strengths. For a company introducing a new product in new market SWOT analyses is crucial because it provides us with mixture of qualitative and quantitative information. opportunities and threats with respect to the market they are entering and plan their strategy further accordingly.A good marketing plan should be dynamic and companies should continuously revise and update their marketing plan to keep a competitive edge in market. 1989). IMPORTANT MARKETING ANALYSIS FOR NANO EUROPA Market analysis is the heart of marketing planning exercise. It would be useful if they identify their strengths. competitors. competitor positions and competitor strategies. weaknesses. The successful achievement of the firm's goals and objectives depends on its ability to transform key strengths into capabilities by matching them with opportunities in the marketing environment. and even capabilities. weaknesses. of familiar and unfamiliar facts. (Piercy and Giles.
. of known and half known understandings that characterizes strategic marketing planning. This is true for case of Tata nano Europa which is about to enter a new unknown market with a completely new offering. (Wood. The assessment of the firm's strengths and weaknesses involves looking beyond the firm's current products. It includes analysis of marketing environment.
1996). When operating in Indian market the buying performa for Nano included people in lower middle class. But this segment does not exist in U. PEST analysis give information for four macro environment areas.
. Tata Nano Europa can make great use of this analysis since they are entering a new market understanding what all factors can affect their operations and all the important issues that require consideration. It is another basic analysis model in strategic marketing.K people do not use two wheelers when travelling with their families. there is huge market of used cars in U.PEST ANALYSIS Next important analysis required by Tata Nano Europa is PEST analysis. the KCVs.environment and is a method of capturing details of the factors that require consideration when formulating a marketing plan. CONSUMER BUYER PERFORMA Another market analysis which is important for Nano Europa is to have proper buying performas for their identified segments.K that all the people can afford and buy a car for themselves.K market. in U. PEST analysis is a useful tool for understanding risks associated with market. As mentioned on Tata Nano website. political.uk.K and create the buying performas for them. If a company understands these areas well and also identifies their changing patterns it can position its product well and target the consumers effectively. so that they could be effectively targeted. Buying performa identifies the segments based on their characteristics. A PEST analysis is a useful tool for understanding the µbig picture¶ of the environment in which an organization is operating or going to operate. This asks for Tata group to define the segments for Europa in U. social and technological. and Nano Europa can make use of this tool to reduce any risks involved with entering new market (cipd. It is a tool for presenting information about macro. Buying Process and Influencing Factors (Dibb and Simkin. It gives company a deeper insight into the profiles of segments and helps in utilizing correct measures to reach them. Nano was designed for those Indian populations that travel on two wheelers with their whole family because they cannot afford a car. 2008). economical.co. (Mackay. 2010). Also.
K and hence have enormous benefits from the strategically analyzing this market.
. price cannot be the only factor Nano can expect to gain market shares on. Nano. it will have to compete with other known. although format tables for both is attached along to understand the important of analysis and what key finding they can provide.K in the coming year the strategic analysis should be carefully done and marketing plan should be developed keeping in mind all the findings of analyses. in the present scenario Nano occupies a niche market segment and is operating in area where there are no competitors. But many companies have already made their announcements for low cars in competition to Nano. In this situation. though innovative have some drawbacks also.1996). Nano Europa is accepted by people across the globe. Though. CONCLUSION Nano is a very innovative product and has changed the Indian automobile industry.K especially small car brands like Mini. So. World is now eagerly waiting to see how global version of Nano. (Dibb and Simkin. assessing competitor¶s strengths and weaknesses.K market and they need a very strong marketing plan to create their position in this competent car market in U. The five steps of competition analysis involve identifying company¶s competitors. This product is going to be launched in a foreign country where Tata brand is not a known brand. estimating their reaction patterns and finally choosing which competitors to attack and avoid. To support the report and explain the concepts better.K in terms of perceived brand value for customers. it is important for Nano Europa to consider the competition it is going to get from existing car brands in U. well settled car brands in U. determining competitor¶s objectives and strategies. Thus.COMPETITIVE ANALYSES Lastly. the analyzing tool that Nano Europa should use is Competitive Analysis. Nano Europa is a new product for U. To successfully market it in U. they are not done in this report. The buyer behavior and competitive data analyses are more focused and require the statistics. Nano Europa has more factors to consider. the examples of SWOT analyses and PEST analyses are done.
Europa model is costlier than Indian model and price is the base they are marketing the product on. Launching Nano at this time could produce huge benefits. This shows that product is high quality and ready to compete existing brands in the market. Economic Opportunities: Recession has caused a huge demand for low cost products in U. Threats: Nano is basically a low cost product.
.K such product may not be able to get enough sales or acceptance. there are chances that in a developed economy like U.K market.APPENDICES EXAMPLE PEST ANALYSIS Political/ Legal/ Regulatory Opportunities: Upgraded version meets all the regulations of EU safety and emission standards. Threats: Higher quality demand led to tradeoffs between quality and price.
. So.K market and trends in car industry due to presence of its own brand Jaguar Land Rover in U. It is first of its kind in market and is expected to create a new market trend in car industry. It is easier to launch a new product in market about which a company has some previous knowledge. Nano is an example of brilliance. It is difficult to estimate the reaction of market to such low cost product offered by a foreign brand.
Opportunities: In terms of technology and innovation.Societal
Opportunities: Tata Motors has knowledge of U. Threats: Due to its low cost.K. there are cuts on quality. it cannot compete with high quality cars and brands already existing in U.K.K. Threats: A small car like Nano will be first of its kind in U.
low cost car market. Huge sales potential. Upgrading required to meet the EU requirements increases the overall price of car. Extremely cost effective. Market knowledge due to existing own brand Jaguar Land Rover. 3. Most suitable for early adapters and technology savvies. Long history and experience of Tata Motors.
. 5. 2.
THREATS 1. WEAKNESSES 1. 3. All safety and emission tests cleared. 6. High regulations and standards in EU market can lead to more tradeoffs between price and quality. A real example of innovation. Not much demand for low cost car in developed nations as compared to developing nations. 3. 2. A chance to get product recognition on a global level. 4. Need to establish brand in a foreign market. Copy cats and similar innovation products are already been proposed by many companies. Huge competition from better and high quality established car manufacturers.
OPPORTUNITIES 1. 2. Quality little lower than most other cars existing in U. 3.EXAMPLE SWOT ANALYSIS STRENGHTS 1. Can become a trend setter or even market leaders in small. 2.K market. 4.
FORMAT FOR BUYER BEHAVIOUR PERFORMA
FORMAT FOR COMPETITIVE ANALYSES PERFORMA
com. 6. Retrieved 200906-08 [accessed 9-12-2010]. MIP 7.html [accessed on 9-12-2010]. I. Available from http://www.com/cms/s/0/ac0298a0-0434-11de-845b000077b07658. L. The Economic Times (2008). Warwickshire: The Greatest In The World Ltd. 12.au/24821/tata-nanoeuropa [ accessed on 9-12-2010]. London: Houghton Hill Company. Tata sets Nano launch date [www]. Available from: http://imaginmor. WOOD. 10.REFERENCES 1. Marketing planning and sales potential [diagram]. 8. 2ND European edition.co. (1999).
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