marketing strategy of TATA motors - page 3
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 3 of 10 pages: 1 2 3 4 5 6 7 8 9 10
service their existing debt. Additionally the levels of mortgage equity withdrawal have declined, what indicates that UK consumers do not seek alternative funds to buy expensive items like cars.
Currency stability - The current strong state of British pound against other currencies have created various benefits for manufacturers consumers operating in pound zone such as predictability of operations and minimised currency fluctuation risk .
Labour costs - As the outlook of the automotive industry highlighted, the cost factor and the capability of direct and indirect costs becomes one of the key issues in maintaining competitive advantage. According to the opinion of the industry specialists (KPMG, 2004), one of the key issues that will influence the operations location decision will be labour-specific costs. According to survey (KPMG, 2004) industry specialists put a major emphasis on the labour-specific cost saving. Moreover, 85 % of the respondents agreed that during coming five years there will be a major increase of labour specific costs (cost of pensions, health care, and legal services) in US and EU .
The expansion of existing political and economic blocs (EU) – The importance of the recent further expansion of EU is in the enlargement of the EU as single market. In case of successful expansion on the UK market, Tata might consider the further expansion in certain EU countries. According to estimations of Nieuwenhuis & Wells (2003) the attractiveness of EU as the target market for a car manufacturer will remain high. They claim that the attractiveness of EU as a target market will be maintained by the increase of its market size and value as the outcome of the extension of EU zone. However the current maturity of the market, excessive completion and demand trend suggests that the share of Europe will drop.
Social factors
Demographic factors – Demographic factor is one of the key social factors. It affects lifestyle, consumer trends, the type of risk aversive behaviour, spending power and value per customer. The state of demographic trends allows building projections for the use of particular type of products. The current UK demographics have undermined the sales of family cars
Lifestyles – The change of lifestyles and habits have a direct impact on the consumer expenditures. For instance, Mintel (2006) points out the recent increase of preferences for second car ownership. Mintel (2006) adds that the impact of lifestyle factors such as fashionability and luxury preferences are so strong
Last 5 comments…
There have been no comments posted for this article, but you need to register if you want to be the first!