Marketing Plan: Tata Nexon

EV

XLRI GMP (2020-21)

Marketing Management (MKGG20-2)

Section A – Group 7
Satyam Prabhakar G20038
Akshay Dinde G20015
Anirudh Singh G20007
Milap Mukherjee G20023
Vikash Mohan G20047
Table of Contents
Table of Contents............................................................................................................................................................................2

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Introduction....................................................................................................................................................................................3
Market Factors................................................................................................................................................................................4
SWOT – Tata Nexon EV...................................................................................................................................................................6
Porters Five Forces..........................................................................................................................................................................7
PESTEL Analysis...............................................................................................................................................................................8
Company and Competitor Analysis................................................................................................................................................9
SWOT ANALYSIS – COMPARATIVE LANDSCAPE...........................................................................................................................11
Marketing Mix..............................................................................................................................................................................13
BCG Matrix Analysis.....................................................................................................................................................................15
Value Chain...................................................................................................................................................................................16
Differential Advantage for each company..................................................................................................................................17
Expected Future Strategies...........................................................................................................................................................19
Segmentation................................................................................................................................................................................20
Framework of Segment Attractiveness........................................................................................................................................21
Market Strategy Framework........................................................................................................................................................22
Targeting.......................................................................................................................................................................................23
Positioning....................................................................................................................................................................................24
Customer Journey Map.................................................................................................................................................................25
References.....................................................................................................................................................................................30

Introduction

Tata Nexon EV is currently the most affordable electric SUV in India, making it a market leader in its segment with a market
share of over 60 percent. Tata Nexon uses the components of Tata Motors' new proprietary EV technology called Ziptron.

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Nexon EV has a "minimum range of 250km" and will support fast charging. Its battery pack comprises lithium-ion cells and features
liquid cooling to maintain the ideal operating temperature.
Nexon cars will features drive modes to give drivers the option to maximize range or enhance performance. Connectivity
technology is also part of Nexon EV cars; It gives buyers remote access to location reports, vehicle health, and status.
The charge range is a critical criterion for any electric car; Though Nexon EV might be the cheapest and illustrious kid in the block, it
falls short when it comes to charging, going up to only 312 km in a single charge. Simultaneously, Kona EV and ZS EV well surpasses
it by providing 452km and 340 3km, respectively, in a single charge.

Source: (Tata Nexon – Evo India, 2020) & (Tata Nexon - Autocar India,2020)

• ZIPTRON technology comprises of a highly efficient permanent magnet AC motor providing superior performance
on demand. Further, ZIPTRON utilizes smart regenerative braking to charge the battery while on the drive.
• With the launch of ZIPTRON, Tata Motors also rolled out the ZIPTRON Freedom 2.0 campaign. This campaign aims at
highlighting how this technology breaks existing barriers and provides freedom from pollution, addresses range anxiety,
and
offers electrifying driving performance.
Market Factors

Aggregate Factors Attractiveness

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Market Size High
Market Growth Moderate
Sales Cyclicity High
Sales Seasonality Moderate
Profits Low
Category Factors
Threat of New Entrants High
Bargaining Power of Buyers Moderate
Bargaining Power of Suppliers Moderate
Current Category Rivalry High
Pressure from Substitutes Low
Capacity High
Environmental Factors
Technological Low
Political Moderate
Economic Low
Legal High
Social Moderate

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SWOT – Tata Nexon EV

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Market Share of 60.23% for FY-21 & Sales Data - Source: (Tata Nexon EV Review, 2020)

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Porters Five Forces

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PESTEL Analysis

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Company and Competitor Analysis

Product Features Matrix

Objective

The core objective is to provide safe, economic & sustainable solutions to transportation through innovative electric vehicles
thereby enhancing the quality of life & provide leadership into the problem of green logistics & urban mobility. The EV sector is
poised for tremendous growth backed with pro-electric government policies.

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Strategies

Tata Motors Morris Garages Hyundai Motors

• Promote participation in Test
Drives
Strategy • Utilization of Godrej
L'AFFAIRE platform to augment
the electric experience
• Installation of Virtual Demo
Setups in metropolitan
cities across India
• Digital Marketing in social
media platforms like Facebook,
Twitter and Instagram
• A mix of ad formats including • First mover’s advantage of
sponsored content, video ads, launching the first electric
dynamic ads SUV in India
• LinkedIn Insight tag installed on • R&D centers located in
their website to unlock valuable key regions to study
product insights changing consumer
• A massive investment of 5000 preferences
crores between 2019 and 2025 • Association with
• Cutting edge technological international events like
features such as blind spot FIFA, UEFA, ICC
detection, adaptive cruise cricket matches
control with traffic jam • Customer Centric after
assist sales service

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SWOT ANALYSIS – COMPARATIVE LANDSCAPE
Tata Nexon EV
Strength • Cost-Effective variants
tailored for Indian Market
• Tata is one of the most
trusted consumer brands in
India
• ZIPTRON Technology
attributes to high
efficiency and purpose
Weakness • Battery Capacity less than
its competitors
• Battery Charging time
greater than its competitors
Opportunity • Need to sustain the current
market share as the leader
in the EV segment
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MG ZS EV Tata Tigor EV Hyundai KONA EV
• Highest battery capacity • Priced the lowest • One of the highest in
amongst competitors amongst its battery capacity
• Battery Charging time competitors • Lowest charging time of
is less than the average • Tata is a highly trusted 6.1 hours among its
of the competitors consumer brand competitors
• Technologically • A large number of
Superior among Distribution channels
the cohort (Adaptive facilitates seamless
learning, Over the Air delivery to customers
updates)
• MG is still trying to get a • Battery capacity • Price is too high for the
foothold in the Indian weakest amongst Indian market
Market competitors • Brand awareness lower
• Brand awareness is low • Charging time is than Tata in India
among consumers highest of 11.5 hours
• Bargaining power
is relatively low
with suppliers at
present
• MG is trying to capture • Need to maintain the • Technological
the mid-market segment, current price to retain advantage, if retained,
which is the largest the competitive can prove to be

• Brand reliance on Tata is
high among consumers, and
it can be used to capitalize
on the EV Market
Threats • The industry is relatively
new, and many new
players are expected to
enter the market with
cheaper variants
• Sales can be Cannibalized
by the lower cost
sibling Tata Tigor
Price
Price is highly visible and probably the most differentiating factor by which consumers choose one brand over the other.
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portion of the Indian
market. If successful, it
can lead to sustainability
• Need to introduce cost-
effective variants
• Plenty of new players are • Technological
expected to enter the EV
market with lower-
priced variants
• Switching cost to MG is
high for Indian
Consumers
Marketing Mix
advantage beneficial in the long run
• Brand reliance on • Planning to introduce a
Tata is high among new variant in the
consumers, and it can market at a price lower
be used to capitalize than Tata Nexon EV
on the EV Market
• High threat of new
advancement required entrants at a significantly
to keep up with lower price
competitors • Sale (in units) has been
• Sales can clash with almost constant from
Tata Nexon EV July to August 2020
unlike the growing trend
as shown by Nexon and
ZS
 Marketing Plan: Tata Nexon
EV

Tata Motors - Hyundai Motors -

Nexon EV - 14 lakh Kona EV - 24 lakh

Price
Morisson Garages - Tata Motors -
ZS EV: 21 - 24 Lakh Tigor - 11 Lakh

Product

Product is a pre-requisite of marketing strategy which goes a long way in determining a company's success. The more
acceptable is the product by the consumers, the more they will be willing to pay for the product. The quality of the finished product is
an important aspect to determine the bargaining power of the organization with its customers.
Promotion

Promotion is a means to increase the probability of transactions between sellers and customers. Promotion is primarily done by

media like the press, television, radio, and social media platforms. The frequency of promotions also an important aspect of

determining customer acceptability of the product.

Place

Place refers mainly to the distribution channels of the products. Showrooms, Retail outlets, True Value outlets provide a means

of convenience for the customer to examine the outlook and specifications of the product and tom initiate transaction if interested.

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BCG Matrix Analysis

Market Share, Market Share of the largest competitor, Relative Market Share and Market Growth of Tata Nexon, MG ZS, Hyundai
Kona, and Tata Tigor for the months of April 2020 – Aug 2020

BCG Matrix for Tata Nexon, MG ZS, and Hyundai Kona for the months of April 2020 – Aug

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Value Chain

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Differential Advantage for each company

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Expected Future Strategies

Tata Motors Morris Garages Hyundai Motors

• Continue to produce cost-
effective variants to retain their
competitive advantage
• Focus on improving
Expected technological standards to
Future align themselves with the new
Strategy players having a technological
edge
• Explore further into the
domain of Electrical
Vehicles and Clean
Technology
• Likely to introduce ZIPTRON
technology in Tata Tigor EV
• Enhance Promotional • Introduce more cost-efficient
activities in India to gain a models of Electric Vehicles
strong foothold and to to gain a greater competitive
generate a customer base edge
• Invest more in Promotional
• Increase Distribution
activities in order to generate
Channels in India
a stronger customer base
• Introduce economic variants
• Likely to introduce dedicated
of their products in order to
Hydrogen Fuel Cell system
compete in the Indian
branded as “HTWO”
market
• Continue to retain their
technological supremacy
and strike a balance
between Technology
and price

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Segmentation

Segmentation – Market Segmentation is the identification of portions of the market that differ from each other. Segmentation allows
the firm to identify its potential customers and cater to their needs.

For segmentation process, we took the help of SPSS Software for Cluster Analysis.
After running the Cluster Analysis on the SPSS Software, we found the following results for each Cluster(Segment).
Number of Cases in
each Cluster
Cluster 1 53.000
2 132.000
Valid 185.000
Missing 38.000

Cluster 1 of the segmentation

Persona: Male, 30-34 years Age, Willing to Pay 8-12 Lakhs, has a family with 1 kid and likes to drive high performance cars. He is

inclined towards comfort and style but is Cost conscious and likes to travel.

Cluster 2 of the segmentation

Persona: Male, Willing to Pay 12-16 Lakhs, has no children.

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Framework of Segment Attractiveness

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Market Strategy Framework

Tata Nexon EV falls in the opportunity market and Market Strategy framework is shown below:

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Targeting

• Since we have a single product focused on a Single segment, we must go for a highly focused targeting for our product,
TATA Nexon EV.
Among the various Targeting Strategy listed below, we chose Concentrated Marketing for the Cluster identified.
1. Undifferentiated Marketing.

2. Differentiated Marketing.

3. Concentrated Marketing.

4. Customized Marketing.

5. Mass Marketing.

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We are choosing the Concentrated Marketing for our product with this data as we have got a single cluster (segment) to
concentrate on with our product.
Positioning

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Customer Journey Map

Our Product is an Electric Vehicle: Tata Nexon EV, we have categorized the customer journey in three stages:
1. Presales
2. Sales
3. After Sales.
We identified 18 touch points which the customers might experience out of which we have shortlisted 9 Key Touchpoints in
the horizontal axis through group discussion.
We developed the vertical axis map of the customer journey map for strategic & service innovation by focussing on Employee
action, Brand Value Perception & Showroom Design which combines the cross-functional aspects of marketing, human resource,
Operations & Information Technology to enhance the customer experience at touchpoints wherever possible.

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Desire to Online
Visit Explore After Sales
Purchase a Car Search & Media Purchase
Showroom Options Service

Customers Touchpoints
Online Search & Visit Explore After Sales
Desire to Purchase a Car Media Showroom Options Purchase Service
Choices of Incentives
Cars & Display based on
Advertising & Digital Salesperson Models(Test Customer Customer
Marketing Behaviour Drive Facility) Profiles Relationship
In Showroom
Raising Product Information Payment
Awareness(Brochure) Display methods Service Schedule
Customer
Amenities at Recommend the
Offers & Discounts Showroom Product to others

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Addressing Service Mechanic
Queries Training
Customer
Amenities at
Service Center
Feedback
Payment methods

Customer’s Needs and Activities

Desire to Purchase a Online Search &
Car Media Visit Showroom Explore Options Purchase After Sales Service
Accessible Good Salesman Availability of Finance
Owning 1st Vehicle Websites Behaviour Models Options Short TAT
Strategic Flexible
Placement of Showroom Payment Good Customer
Convenience Advertisements Amenities Test Drive Facility Options Relationship
Upgradation from Social Media Proper Display Proper address of Discounts & Transparent
Present Car Presence of Information Purchase Queries Incentives Maintenance Charges
3rd Party Reviews
Status Symbol of vehicle Accessories
Potential Opportunities
for Improvement
Online Search &
Desire to Purchase a Car Media Visit Showroom Explore Options Purchase After Sales Service

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Constant
Engagement with
Target Customers Finance
through Social Design Options with Vehicle Pick up &
Media (Facebook, Showrooms All Major Drop service from
Instagram, Twitter exclusively for Provide on door test Banking Home for Scheduled
etc). e-Vehicles. drive facilities Institutions maintenance
Offer
Advertising Proper facilities Customer Preventive &
through Media for Sanitation & Profile Predictive maintenance
(TV, Radio, hygiene to be Avoid Stock targeted using Technology
Print). maintained. Out Risk discount (IoT, GIS).
Set up
information
kiosks at Photo Booths
strategically to be installed
people-intensive and Hashtags
places like malls, to be
Technology Make sure that the incorporated Application based
Parks, and Have free showrom has a Glass for Check-in service slot booking
Business Parks to Wifi access Façade for a proper in Social and maximizing
grab maximum for Customer visibility of Cars Media adherence to Service
public attention. Connectivity. from outside. Promotion Schedule timing.
Deploy Make the Merchandise and Free Goodies Construct Observation
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Advertisements &
Billboards with
Creative &
Informative Accessories should
Content at Showroom be available on
Roadways accessible to display and and Brand
approaching Specially abled promoted with the Customized gallery to ensure
Showrooms. individuals. sales of the Car. Accessories transparency of service

Expectation of Customer

Desire to Online Search & Explore After Sales

Purchase a Car Media Visit Showroom Options Purchase Service
Email Accessibiity of Test Drive Vehicle Delivery
Communication Website Ambience Experience Experience Service Schedule
Budget tailored Employee Adequate
Suggestions Seating & Lounge Behaviour Ease of Payment Warranty Period
Proper visibility of Addressal of Charging Setup
Chatbot Assistance desired models Queries Installation
Briefing about the
Operation of Car

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