Tutorial 2

Brazilian automobile market – Macro

and category analysis

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Task
• The Marketing Manager of the Tata Motors in India has asked you to
look into the viability of launching their ultra-low cost car (The Tata
Nano, which retails for approximately $2000) in the Brazilian car
market.
• You are asked to carry out the first two stages of the PMA model
researching the Brazilian market generally and the car market
specifically to gauge its attractiveness

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Using the information sources in the tutorial book build
a macro and micro analysis of the Brazilian market

• Allows you to rehearse the type of information that might be useful

for you in your assessment.
• Practice the application of the so what question so that you are
analytical rather than descriptive
• Choose the most important factors and state their relevance to the
launch of an ULCC in Brazil.

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Comrie and Hunt-Fraisse (2015) Potential
Market Assessment model.

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Macro factors
• Looking at the information, pull out key macro factors and consider
the so what? question. Why does this information have an impact on
the launch of the Tata Nano in the Brazilian market?
• Put the FACTORS under headings – PESTLE
• Remember we do not expect you to use all of the headings / all of the
factors but to extract those you consider to be the most important.

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Micro factors
• Within this section you will be looking at elements such as:
• Competition in the market / key competitors
• Where consumers buy the product
• Any links between Tata and other car manufacturers
• What consumers are looking for
• How the market is segmented
• The size of the different segments

• (you will not have all of this information in the data I have given you, but it
gives you an idea of the type of things you are looking for)
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What we asked you to complete in your
tutorial book.
Factors So what?
Macro Political:
As of April 2023, the National Electric Energy
Agency is working on revising its implementation
processes to comply with a federal law that
mandates R&D requirements on electricity utilities
in the country.
The measures aim to address investor concerns about fiscal discipline under
President Luiz Inacio Lula da Silva's administration, while keeping gross debt
around 75.0% of GDP without exceeding 80.0%.
ch
Economic: Technology and Intellectual capital
Chinese electric vehicle (EV) manufacturer BYD announced that it will invest $600.0 Employment
million in the construction of an industrial complex in Brazil's Bahia state to produce Investment inflow FDI
electric and hybrid cars, buses, and trucks. Incentive for clean energy EV market
Socio-cultural:
Brazilians dream of owning a car as it represents success to them, however these big This is positive for the launch of an ULCC provided
ticket items are often out of their financial reach (McKinsey, 2015) the product can be promoted effectively as good
value for money rather than cheap

Technological
According to MarketLine, internet users stood
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190 million, with 88.5% of the population having
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What is
important to
Brazilians when
buying a car

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Preparation for next week
• Revise Porter’s (1985) value chain, ensuring you understand how it is
applied
• Revise FSAs and CSAs.
• Read the Tata Nano case study in your tutorial book and to look at the
video clips prior to the tutorial.
• Complete the tables in your tutorial book using the information
provided and what you have learned from the video clips.

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