marketing strategy of TATA motors - page 1
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 1 of 10 pages: 1 2 3 4 5 6 7 8 9 10
Final Draft – Marketing Strategy
Tata Motors hypothetical entry on UK market
The market of Tata’s entry
Despite the global trend for the important fall of car sales there are certain car segments which experience vibrant growth. According to Datamonitor (2006b) the sales of commercial vehicles and port utility vehicles were very strong. Windecker (2005) stresses the influence of socio-cultural forces which formed the increased preferences towards more fashionable, sport-type, SUV equipped cars. The extremely high growth of SUVs was identified in US and United Kingdom.
Initially the main focus of Tata’s market entry will be United Kingdom. There were plenty of reasons for choosing United Kingdom as the target market. These positive factors were the prominence of India as the positive economic driving force, United Kingdom Car market dynamics and potential, language connection. The other countries which were considered as potentially attractive were: the US - the biggest market in the world, Russia – growing market with major potential for sales. The opportunity of the USA as target market was declined due to tremendously high class requirements and other non-tariff barriers which make it hard for a new competitor to enter this market. in addition, this market is extremely mature and experiences extreme level of competitive pressure. With regard to Russian market, there were several critical factors which made it less attractive then the UK – the uncertainty of the further economic state, high entry barriers and no well—developed dealership network.
External Environmental Analysis of UK market
There are several number of factors that might be included into P.E.S.T. analysis. But due to various limitations (time, word limit), the factors will be outlined, whereas the major focus will be made on several sub-factors only (according to the Pareto Principle, it is likely that about 20% of the factors will represent 80% of the potential effect on the business (Wit & Meyer, 1998).
Political factors
Political and legal factors play vital role on the growth of the industry. These factors figure the rules of competition, operational costs and supply chain requirements.
Oil prices resulting from international instability - The special attention shall be given to oil prices and its affect on the market requirement. According to Mintel (2006) the increase of oil prices has created a strong tendency towards small engines, hybrid engines and diesel engines. Current high level of oil price increase the strain on the sales of luxury and premium cars,
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