marketing strategy of TATA motors - page 8
Keywords: marketing strategy
By finil on 15/05/2009
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 8 of 10 pages: 1 2 3 4 5 6 7 8 9 10
new product (Lilly & Walters (1997).
The Mintel (2006) study gives following options of possible advertising channels:
TV;
Print advertising;
Internet Advertising
Mintel (2006) asserts that the ATL (above the line) spending account for the major share of all expenditures on promotional activities, whereas the share of TV advertising might exceed 50% of total cost. KPMG (2004) notes that promotional budget usually comprises 1%-2% of the expected sales. Provided that the initial target for Tata Motors is to sell 25 000 units in the first year of operations, the marketing budget will be £3 750 0002. Additionally, the similar contribution will be expected from the contractual partner of Tata Motors. 50% of marketing budget will be allocated to TV advertisings, 25% - promotional activities in Car and Life style Magazines. 25% - will allocated for point of sales promotions, events and co-marketing activities. To increase the level of coverage the company will look for partnerships that can strengthen its promotional appeal.
Conclusion
The paper suggested that Tata Motors should enter the UK market. This country was chosen due to the presence of the number of favorable business and environmental factors such as economic stability, relatively medium entry barriers, positive growth of certain car market segments and the future growth potential within EU whereas the UK might be used as expansion base. The analysis of business factors indicated the importance of choosing fast mode of entry and the development of contractual relationships with UK operating market agents. To address this issue the paper suggested that the company should use contractual joint venture as the mode of UK market entry. This strategic option will provide Tata Motors with fast market penetration, access to market knowledge and reduced financial strain. At the same time, possible negative aspects of this choice should be counterbalanced. The analysis of internal factors revealed that the company’s performance is strongly dependent on the success of operations in Indian market, which might be undermined with the further increase of competitive pressure. To strengthen its position against aggressive tactics of competitors Tata Motors is suggested to focus on building customer relationships and employ marketing tools designed to increase the level of customer loyalty.
On the basis of the analysis of current market dynamics Tata Motors is advised to enter the market with SUV model, designed for sport type oriented individuals, who look for a relatively cheap, environmentally friendly, high quality car. The price will be one
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