marketing strategy of TATA motors - page 7
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 7 of 10 pages: 1 2 3 4 5 6 7 8 9 10
The product advantage is a key differentiator between success and failure in the development of new products and services alike. In order to hit the market the company have manufactured the model X1 which is environmentally friendly mini- sport utility vehicle with 5 speed automatic transmission and 140 HP 1,8L hybrid engine with relatively low fuel consumption1. The company needs to emphasize the order-winning qualities of the product to potential customers. The decision of entering SUV segment was determined by the growth dynamics of this segment during 2003-2005 - 10%. The product will be designed to meet the quality preferences of the following customer segments: fashion oriented individuals, 25-45 years old, who look for affordable sport type utility vehicle.
One of the essential aspects of Product mix will be the development of post-purchase service. The company will seek to develop contractual relationships with different car service networks like independent garages, specialist fast-fit chains, mobile servicing and tuning services and autocentres. The development of strong relationship with Kwik-Fit, Finelist and Halfords will increase product attractiveness in terms of availability and accessibility of service facilities.
Price
The Mintel (2006) research indicates the relative importance of price issue, especially for customers who seek to own a second car. The chosen pricing strategy will seek to attract potential customers buy affordable price – £10 000. This price is 2,995 lower then the price of one of the best-selling cars - Daihatsu's Terios. The aspect of pricing is related to the cost of service and car accessories. The major focus will be to minimize the servicing costs by concluding conditional agreements with service partners and providing them with low-cost quality accessories and spare parts.
Place
Distribution is crucial in the eventual acceptance and sales of a new product in the market as it governs the availability of the new product to customers (Calantone & Montoya-Weiss, 1993). It goes without saying that the distribution channels chosen must reflect the target market's buying behavior and allow for maximum availability to the target market. The distribution channels chosen may reinforce or dilute the intended message of the product's positioning in the marketplace. To maximize the product availability Tata Motors will select the contractual partner with strong dealership network. Additionally, e-distribution strategy will be implemented to utilize the capacity of this distribution channel.
Promotion
Promotion decisions encompass the range of communication and motivation instruments needed to raise awareness and precipitate purchase of the
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