marketing strategy of TATA motors - page 2
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 2 of 10 pages: 1 2 3 4 5 6 7 8 9 10
the majority of which are equipped with large-size engines (more then two litres).
Administrative barriers (quality controls and operations requirements) (KPMG, 2004) - Administrative barriers need to be seriously concerned as various requirements for safety standards and emission level might increase the costs of production and reduce the operating profit margin.
Car parc legislation - According to Mintel (2006) the UK experience the threat of high overcapacity with the excessive traffic load of road networks.
The political relationships between countries of operations (regimes of favourability/protectionism) (Hill, 2002) – India cooperates with the UK within the regime of favourability which implies the certain benefits as reduced tariff and non-tariff barriers.
The foreign ownership regulations (The market expansion mode (Hill, 2002) – At the present time the UK is considered as one of the most pro-FDI country in EU. The large number of industries, including automotive one, are deregulated. It means that foreign regulation provides foreign companies with flexibility of choosing between all possible entry and expansion modes.
Economic factors
One of the major location choice determinants is the current and future demand conditions as they will affect the market growth potential, pricing strategy and operations margin and the potential of the return on investment.
The target market size – According to Mintel (2006) since 2001 there has been a steady market growth by size and value. The current UK car parc is estimated to accommodate 31 million units. The market value was contributed by the steady growth of average price level. The present market value is estimated to reach the level of £31 billion
The maturity of the target market - The UK market is viewed (Mintel, 2006) as highly mature. The current maturity causes overcapacity issue and significant sales fall of particular car segments.
The growth potential of the target market – The overall UK market experiences negative growth due to the maturity issue. Nevertheless, certain the sales of certain car segments have significant growth potential due to the impact of socio-cultural and technological factors.
PDI - According to Mintel (2006) the strong growth of GDP (10% between 1998-2005), personal disposable income (PDI) (19%) and consumer expenditures (18%) reflect the high level of consumer confidence. Mintel (2006) claims that in terms of the purchase of new cars consumer confidence has significantly fallen. By the present moment UK consumers have been reluctant to take out new debt and instead are choosing to
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