NAME: NIRAJ KUMAR

STUDENT NO: 11229617

ASSIGNMENT TITLE: INTERNATIONAL MARKETING PLANNING FOR

TATA NANO ENTER IN CHINA

MODULE CODE: MKT9104

CO-ORDINATOR: WARREN GLOVER

DATE OF SUBMITTION: 19TH,DECEMBER, 2011

INTRODUCTION

People Say “Love has no national and International boundaries” and I believe companies are on the same track.

In this assignment we will see when a company expands there market from their home country to totally different market (country or continent) which may be different in every aspect, what do they plan? How do they plan? What do they do? How do they do it? And we call it International marketing planning.

In the following we are going to launching Tata Nano to China. The first phase of the international marketing plan will deal with introduction of the organization deep study of the chosen market and its suitability for growth opportunity. The second phase will discuss various strategic development opportunities and market strategies for the product including the recommended mode of market entry. The third phase will focus on the various aspects of the extended marketing operations including reference to product, pricing, distribution, communication and services dimensions. In the final phase author will raise critical points and views.

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The AnalysisMarketing Theory

Marketing is the process which creates communicates delivers the value to the customer and maintain the relationship with customers. It generates the strategy that underlies sales techniques, business communication, and business developments. It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.

Marketing evolved to meet the stasis in developing new markets caused by mature markets and overcapacities in the last 2-3 centuries. The adoption of marketing strategies requires businesses to shift their focus from production to the perceived needs and wants of their customers as the means of staying profitable.

The term marketing concepts holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions. It proposes that in order to satisfy its organizational objectives, an organization should anticipate the needs and wants of consumers and satisfy these more effectively than competitors.

When marketing their products firms need to create a successful mix of:

the right product sold at the right price in the right place Using the most suitable promotion.

To create the right marketing mix, businesses have to meet the following conditions:

The product has to have the right features - for example, it must look good and work well.

The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.

The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

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About Tata Nano:“Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India’s former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the wait of five years, crossing all financial and technological barriers, Ratan Tata kept his promise and unveiled Tata Nano on 10th January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool & smart, launched by Tata Motors is worlds cheapest Car with a price tag of $ 2500The Making of Tata Nano Ratan Tata rolls the window down and talks about the vision and conviction, the innovation and improvisation, and the leap of faith that went into creating the Peoples Car. The launch of the Peoples Car by Tata Motors is a defining moment in the history of India’s automotive industry.

Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1-lakh, approximately GBP 1700. It is manufactured by Tata Motor Limited, the largest automobile company in India. The project to create the world's cheapest car inspired by the number of Indian families with two-wheeled rather than four-wheeled transport. Mr. Ratan Tata makes this dream car for low income categories people and those segments of people who can easily afford to make their dream true to buy a car

Founder: Mr Ratan Naval Tata (It’s their dream project to make world cheapest car INR 1-Lakh, approximately GBP: 1700, 15000 Yen)

Factory:Tata Motors announced in 2006that the Nano would be manufactured in Singur, West Bengal, helped in part by a forced acquisition and reuse of farmland by the West Bengal state government to entice Tata to build their Local farmers soon began protesting the forced acquisition of their land for the new factory. As the protests continued through 2007 and 2008, Tata first delayed the Nano launch and later decided to build the car in a different state (Gujarat) instead.

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TATA NANO PRODUCT:

The project builds the Nano started in 2003, Mr.Girishwagh was selected as the leader of the 500 member’s team which was chosen to develop the Nano right from the beginning, the team members were asked to be as frugal as possible to maintain the low price target of the car. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500booking. The figures keep increasing every day since the launching. Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance.

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SWOT Analysis of Tata Nano

SWOT analysis investigates the China political, economic and business environment. The following findings are adapted from China Auto Report 2009. However, despite their importance, many companies often only have vague ideas of their competitive strengths and weaknesses, opportunities and threats. In this paper, the development of a knowledge-based system is described that can assist managers of small and medium sized companies in performing a SWOT-analysis. For our research purposes, we concentrated only on the identification of internal strengths and weaknessesSWOT analysis is a method for analysing a business, its resources, and its environment.

Strength:

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During the past four decades, China has transformed itself from a commodities-dependent backwater into a major world source for electronics and computer parts. China is the world’s largest producer of new electronics devices, automobiles, technologies and all latest gadgets at cheaper rates. All this provides a solid platform for economic growth.

Standards of corporate governance in China have greatly improved since the Asian financial crisis at the end of the 1990s – more so, in fact, than in many neighbouring countries. Foreign companies, or at least foreign manufacturing companies, looking to do business in China will continue to be welcomed with open arms, with the government offering lavish tax breaks and concessions.

The internationalisation strategy so far has been to keep local managers in new acquisitions, and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.

Weakness:

The Chinese half of the population holds a constitutionally enshrined special position in society, amounting to positive discrimination in not only jobs, but also wealth. China’s new five-year plan will have important implications for the global economy. Its key feature is to shift official policy from maximizing GDP growth toward raising consumption and average workers’ standard of living. Despite China’s successful economic rise to date and the many strong domestic and international supports for continued fast growth for decades to come, numerous weaknesses and potential weaknesses challenge China’s policymakers. Economic statistics themselves continue to represent a weakness in the management of China’s economic rise. Instead of using seasonally adjusted data, rates of change—such as output, trade, inflation and money aggregates—still rely too heavily upon year-on-year measures that delay recognition of major short-term shifts. One of China’s most serious problems, corruption, is shared with other developing countries. The two most serious risks China faces, to its financial system and in its rural areas, are also likely to find resolution in a combination of ad hoc policies and systemic reforms. Interest rate liberalization at this point would undermine the affordability of financing for China’s infrastructure.

Opportunities:

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The opportunity for private-sector-led growth will improve as the government continues divestment of state shareholdings in order to raise funds to narrow the budget deficit.The opportunity to invest in China state assets could improve. The government, if it sticks to its word, will conduct its biggest ever divestment of state shareholdings. China is eager to compete globally in banking, and although it currently lacks a domestic champion, with ten main institutions in the market, bank consolidation is a strong possibility.

In the summer of 2008, Tata Motor's announced that it had successfully purchased the Land Rover and Jaguar brands from Ford Motors for UK £2.3 million. Two of theWorld's luxury car brand has been added to its portfolio of brands, and will undoubtedly off the company the chance to market vehicles in the luxury segments. Tata Motors Limited acquired Daewoo Motor's Commercial vehicle business in 2004 for around USD $16 million. Nano is the cheapest car in the World - retailing at little more than a motorbike. The new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to10%.

Threats:

China has a huge population. Moreover people there are advancing each passing day. China launches new mobiles, technologies, automobiles almost every day. China’s automobile industry is much bigger than India’s. it can therefore serve quality products at lower cost. China has a string support from the government. Indian IT industries have negligible support .China launches many products like gadgets etc every day. Because of this they can sell them at a cheaper rate. China’s market cannot be a thread untie India considers and works on each opportunity that comes its way. It should efficiently make use all possible resources and infrastructure to welcome foreign investment and manpower hiring.

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STRATEGY DEVELOPMENT

Product Information

Tata Nano Technical Specification, Interiors and Exteriors

Tata Nano is available in three variant,

Nano

Nano CS

Nano LX

Nano Technical Specifications

According to Tata Group's Chairman Ratan Tata, the Nano is a 33 PS (33 hp/24 kW) car with a 623 cc rear engine and rear wheel drive, and has a fuel economy of 4.55 L/100 km (21.97 km/L, 51.7 mpg (US), 62 mpg (UK)) under city road conditions, and 3.85 L/100 km on highways (25.97 km/L, 61.1 mpg (US), 73.3 mpg (UK)). It is the first time a two-cylinder non-opposed petrol engine will be used in a car with a single balancer shaft. Tata Motors has reportedly filed multiple patents related to the innovations in the design of Nano, with power train design alone having 34 patents.

Details NanoDIMENSIONS 

Overall Length 3099 mm

Overall Width 1495 mm (Without ORVMs)

Overall Height 1652 mm

Wheelbase 2230 mm

Ground clearance 180 mm

Minimum Turning Circle Radius 4 m

Seating Capacity 4 persons

Fuel Tank Capacity 15 Litres

Kerb Weight  

     Nano 600 kg

     Nano CX 615 kg

     Nano LX 635 kg

Boot Space With rear seat folded: 500 Litres

  Without rear seat folded: 80 Litres

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ENGINE & TRANSMISSION Engine Type 624 cc, 2 cylinder, MPFI

Maximum Engine Output 38 PS @ 5500 ± 250 rpm

Maximum Torque 51 Nm @ 4000 ± 500 rpm

Maximum Speed 105 Kmph

Gradeability 30%

TransmissionSynchromesh on all forward gears, Sliding mesh on reverse gear with overdrive on 4th gear

No. of Gears 4 Forward + 1 Reverse

SUSPENSION 

FrontIndependent, Lower Wishbone, McPherson Strut with gas filled dampers and anti-roll bar

RearIndependent, Semi Trailing arm with coil spring & gas filled shock absorbers

BRAKES 

Brake TypeDual Circuit, Vertical Split operated by tandem master cylinder with vacuum booster

Front 180 mm diameter Drum Brake

Rear 180 mm diameter Drum Brake

WHEELS & TYRES Tyre Type Radial & Tubeless

Front Tyre size 135/70 R12

Rear Tyre size 155/65 R12

Spare Tyre size 135/70 R12

Wheels 4 B x 12

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Features of Tata Nano

 

Details Nano Nano CX Nano LX

COLOURSSerene White

Rouge Red

Aqua Blue

Serene White

Rouge Red

Neon Rush

Papaya Orange (M/P)

Meteor Silver (M/P)

Champagne Gold (M/P)

Papaya Orange (M/P)

Sunshine Yellow (M/P)

Champagne Gold (M/P)

Mojito Green (M/P)

Pearl White (M/P)

Meteor Silver (M/P)

  M/P- Metallic/ Premium

INTERIOR OF TATA NANO

Seat Upholstery Dual Tone Vinyl Trendy Black FabricPremium Beige Fabric

Door Trim Dual Tone VinylTrendy Black Fabric & Vinyl

Premium Beige Fabric & Black Vinyl

Dashboard Medium Graphite Ebony Black Barley Beige

Centre Facia Ebony Black Silver Dust Silver Metallic

Roof Lining Jute Based Polyester Fabric Polyester Fabric

Premium seats - Yes Yes

Rear Parcel Shelf - Yes Yes

A & B Pillar Trims - Yes Yes

Electronic Trip Meter - - Yes

Instrument Cluster Illumination Yes Yes Yes

Fuel Gauge Digital Digital Digital

Steering Wheel 2 Spoke 2 Spoke 3 Spoke

COMFORT & CONVENIENCE AC - Yes Yes

Heater - Optional Yes

Front Power Windows - - Yes

Cup Holders in Front Console - - Yes

Anti Glare Inside Rear View Mirror

- - Yes

Gear Shift Console Basic BasicWith provision for 12V socket

Cabin Lamp Yes Yes Yes

Magazine and coin Holder on all - - Yes

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doors

Map pocket Integral with Driver &Co driver Seat

Fabric pocket Fabric pocket Separate plastic trim

Front Seat Headrests Yes Yes Yes

Rear Seat Integral Headrests - Yes Yes

Sun visor on Driver & Passenger side

Yes Yes Yes

Driver Seat with Slider Yes Yes (With Recliner) Yes (With Recliner)

Passenger side Seat with Slider - Yes (With Recliner) Yes (With Recliner)

Front assist grips Yes Yes Yes

Rear assist grips - Yes Yes

Head lamp levellingIntegral feature through innovative suspension design

Integral feature through innovative suspension design

Integral feature through innovative suspension design

Low Fuel Warning Lamp Yes Yes Yes

Rear Seat Folding Yes Yes Yes

SAFETY & SECURITY Central Locking - - Yes

Centre High Mount Stop Lamp Yes Yes Yes

Laminated Windshield Yes Yes Yes

Door Lock on Driver Side Yes Yes Yes

Door Lock on Passenger Side - - Yes

Booster-assisted Brakes Yes Yes Yes

Front & Rear Seat Belts Yes Yes Yes

Additional Body Reinforcements

Yes Yes Yes

Intrusion beam

Integral feature through innovative door system design

Integral feature through innovative door system design

Integral feature through innovative door system design

Radial Tubeless tyres Yes Yes Yes

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Tata Nano Interior

Tata Nano CS

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Tata Nano LX

Accessories of Tata Nano

 EXTERIOR  ACCESSORIES

     

Rear Bumper Protector Rear Mud Flap Front Mud Flap

     

 

Front Bumper Protector Rub Rails Decal Disney Series

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Body Kit - Front Skirt Body Kit - Rear Skirt Decals Top

     

 

Alloy Wheels - Y type Exhaust Tip Type 1 Exhaust Tip Type 2

     

 

Body Decals Body Decals  

     

 

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INTERIOR ACCESSORIES     

Neck Rest Seat Cover - Rear Seat Covers - Front

     

 

Dashboard Audio Speaker Audio System Steering Wheel Cover

     

 

Windscreen Sub lock - Disney Series

Window Sun block - Disney Series

Windscreen Sun block

     

 

   

Remote Central Locking

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TARGET GROUP:

Overview of China

Since the beginning of its history, China has been a meeting place for a diverse range of external cultures and religions. As a result of these external influences, a new unified but distinguished Malay culture has emerged. Contemporary China represents a unique fusion of Chinese, and Indian traditions, creating a pluralistic and multi cultural nation that has its character strongly rooted in social harmony, religion and pride in it ancestral background. With such a rich cultural heritage, acquiring the relevant skills and cultural knowledge in order to conduct business in China is crucial to your success. Following years of confrontation in search of independence, China (Hongkong) was established in On July 1, 1997. Hong Kong consists of the island of Hong Kong (32 sq mi; 83 sq km), Stonecutters' Island, Kowloon Peninsula, and the New Territories on the adjoining mainland.

China is a successful example of a democratic Buddhism state. Despite murmurs of discontent among hard-line Buddhism in some states, multiracial China is unlikely to abandon moderate Buddhist. During the past four decades, China has transformed itself from a commodities-dependent backwater into a major world source for electronics and computer parts. China is the world’s largest producer of automobile, electronics goods, and wooden goods and is also a net exporter of crude oil. All this provides a solid platform for economic growth. The opportunity for private-sector-led growth will improve as the government continues divestment of state shareholdings in order to raise funds to narrow the budget deficit. The Standards of corporate governance in China have greatly improved since the Asian financial crisis at the end of the 1990s – more so, in fact, than in many neighbouring countries. Foreign companies, or at least foreign manufacturing companies, looking to do business in a China will continue to be welcomed with open arms, with the government offering lavish tax breaks and concessions.

The opportunity to invest in China state assets could improve. The government, if it sticks to its word, will conduct its biggest ever divestment of state shareholdings. China is eager to compete globally in banking, and although it

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currently lacks a domestic champion, with ten main institutions in the market, bank consolidation is a strong possibility.

The internationalisation strategy so far has been to keep local managers in new acquisitions and to only transplant a couple of senior managers from India into the new market. The benefit is that Tata has been able to exchange expertise. The company has had a successful alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat Palio Style was launched by Tata in 2007, and the companies have an agreement to build a pick-up targeted at Central and South America.

Nano is the cheapest car in the World - retailing at little more than a motorbike. The new and emerging industrial nations such as India, South Korea and China will have a thirst for low-cost passenger and commercial vehicles. These are the opportunities. However the company has put in place a proactive Corporate Social Responsibility (CSR) committee to address potential strategies that will make is operations more sustainable. The range of Super Milo fuel efficient buses are powered by super-efficient, eco-friendly engines. The bus has optional organic clutch with booster assist and better air intakes that will reduce fuel consumption by up to 10%.

Over the last few decades the country has evolved from a successful producer of raw materials to a multi sector economy. Today, China offers a unique blend of old traditional culture and new technological innovations. As the China market continues to develop and prosper, it is becoming increasingly valuable for those entering into business in China to be aware of the cultural dimensions that shape the fabric of this country.

EXECUTIVE SUMMARY

Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1-lakh i.e. approximately GBP 1700. It is manufactured by Tata Motor Limited, the largest Automobile Company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car’’ which is affordable by almost everybody. Tata Nano was first launched in India On 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 Booking. The figures keep increasing every day since the launching.

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What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and Same gas emission as a scooter. Tata Nano will be imported to China by Tata Industries in parts. It will be assembled in its two factories in Beijing and Hongkong distribution centres or its web site.

There are three types of Tata Nano car will be available in Chinese market i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot and mixed weather in China, only Nano CX will be brought to china and will be sold here. The target market is very wide which includes those with income yen 3000 per month, students, female workers and scooters’ riders.

Situation Analyse

Tata Motors Limited is India’s largest automobile company, with revenues of Rs.35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer. In March 2008, Tata Motors acquired Ford’s UK based car brands Jaguar and Land Rover (BBC News, 2008).According to Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like Nano has got to do something for the people of India and transport. Unavailability and poor quality of mass transport is a common problem in India. In a two wheeler, father driving with elder child standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a safer form of transport. As one of its objectives is to become an Indian business conglomerate operating in many countries, Tata Nano will be introduced in China.

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Market SummaryIt is estimated that china has more than 15 million motorcycles on the road, compared to over 10 million motorcars(ICE, 2001).The majority of motorcycle buyers or users does not own a car and belong to the lower and middle-income group. A significantly larger percentage of motorcycle users in Chinese are male.

Target MarketsThe company is targeting lower income group with family, first-time buyers of car (fresh graduates) and motorcycle owners.

PositioningTata Nano will position itself as the world cheapest car and yet does not compromise the quality, safety and environment. This positioning will be achieved by leveraging Tata Nano’s competitive edge: industries experience from the parent company Tata Motor who has been in vehicles industries (commercial, passengers & utilities) since 1945. Tata motor has good supplier manufacturer relationship with more than 100 components.

Geographic Segmentation

Tata Motors has targeted the urban area in china. This is going to be Hongkong and shanghai. There are 15 million motorcycle riders in china. Geographic segmentation calls for dividing the market into different geographical units such as nations, states, regions, countries, cities or neighbourhoods. In the Chinese context geographic segmentation assumes importance due to variations in consumer preference & purchase habits across different regions and states of the country .One of the major geographic segmentation variables relevant for marketers in India is the division of markets into rural and urban areas. Differences in urban & rural markets, based on different parameters including market potential, have major implications for marketers. The need to segment the market geographically becomes clearer when we look at some of the characteristics of the market.

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Distribution review

Just like in India, Tata Nano will be positioned as an affordable car even in overseas markets. ‘Easy-to-assemble kits’ will be imported from Tata in India. The car then will be assembled at pre-defined locations.

Competitor review

The main competitors are Proton, General Motors, Perodua, Ford, Opel, Toyota and Honda.

PROMOTION STRATEGIES

Before determine the promotion strategies, we need to very clear about what are the Objectives we need to achieve. We know as above, our missions are to promote Tata Nano in Malaysia and increase the sales quarterly. Tata Nano is very new for Chinese; they feel fresh with this new brand and concept of this car. Tata Nano will get into Chinese market in 2011.

So first of the objective for promotion strategies are aims to create brand awareness and concept/knowledge of this new car – Tata Nano. This is the cheapest car in the world and burst into the worldwide market in the short time. But still is the new brand for the China, so we do the advertisement and organize the event or campaign in sufficient detail to establish the good brand attitudes. Brand awareness is important to provide a foundation for brand equity. After that, our second objective is knowledge and persuasive. We aim to create liking, preference, conviction, and purchase of a Tata Nano car. We can do the comparison with other cars which are higher purchase price and this price is not every people will be affordable especially lower income families and students.

Beside that we will convince current purchasers that we will give the potential customer to enjoying the good experience with Tata Nano by give try to drive the Tata Nano before buying the car. And also will provide them warranty to the Tata Nano. We will organize all the promotion strategies with lower cost to maintain the lower purchase price for the Tata Nano in China.

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Online AdvertisementFirst step we start before lunching Tata Nano, we do the online advertisement. Tata Nano created a Web site – www.tatanano.com – on March 2009 to better communicate with the customers. In the Web site, we posted the photo categories and videos to provide customers the information and special features of Tata Nano and bring them inside the company. In addition to photos and videos, the web site links to recent news about Tata Nano and space for public feedback.

Besides that, Blogs have become an important outlet for word of mouth which is regularly updated online diaries. Blogs is bringing together people with common interests. They vary wide and can influence a vast audience due to many internet users have read Blogs. We can establish the blog network and carefully monitoring to find out what's on people's minds especially the potential customers. This is a cheapest and good way to build up brand awareness.

Television AdvertisementTelevision advertisement is very expensive but this is the most powerful to perform the Tata Nano to the public by demonstrating Tata Nano attributes and persuasively explaining their corresponding consumer benefits. By lower advertising budget, we cannot do the TV advertisement in whole day, so we just choose the prime time to place the advertisement. By properly designed and executed TV advertisement can improve brand equity and affect sales and profits.

Radio AdvertisementMost of the Chinese listen to the radio daily. Now a days have many facilities such as MP3, hand phone and so on, is convenience for the people to listen the radio anytime at anywhere, This is a cheap and pervasive medium for us to create the brand awareness by repeatedly listen the advertisement and the brand name. Advantages of the radio advertisement are flexibility, quick response and also more effective media for reaching teens.

Newspaper Advertisement

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Beside that the radio, most of the Chinese also will saw a newspaper every day. So this is good market coverage. From here, Tata Nano can get the broad acceptance and good reputation from Malaysians. Newspaper advertising is inexpensive

IMPLIMENTATION:

Product: An impeccable vehicle covering all segment of the market from youngster to senior citizen as well as low income group people. Attractive, compatible and small yet comfortable with wide space make it attractive.

Price: Tata Nano offers world cheapest car which have no other competitors in the market. Tata Nano is affordable to every low income group of peoples as well as students and two wheeler group. The prices of Tata motors are generally affordable acceptable by the general public at large. Tata always have something for the lower class people with Nano being their trump card. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy   use by Tata Motors. Discount can be made from Company’s profit or from dealer’s profit at certain range.

Place: Tata Motors has an extensive dealer network covering Indian and International markets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership.

Promotion: Tata motors promote their products via Advertisings ( TV., radio, news paper, promotional events) and after sales services

 People: Tata Motors owe our success to the highly motivated and talented staff. Our recruitment division picks the crème-de-la-crème from premier universities, management and engineering institutes in India. they put them through rigorous

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training programmes to hone their entrepreneurial skills and impart comprehensive product knowledge.

Processes: Tata motors follow Balanced Scorecard Collaborative, Inc for achieving excellence in overall Company performance.

Physical Evidence: The management of the company has managed to keep their hopes alive even in this recession and hopes that the worse is behind Tata Motors recently launched the most awaited  car of the year, Tata Nano and the company has already received 203,000 booking that are fully paid and 70 percent of the applicants are ready to wait till the end of 2010 for the car to be manufactured.

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Channel of Distribution Strategies

Direct marketing channel (zero-level channel)

We perform the Tata Nano in China by selling it directly to customers. Customers can deal directly with our dealers and take the booking for Tata Nano by visit our sales office or at any special event/campaign. Besides that, customers also can get the information or make the booking via the telephone (1-800-88-nano) and through the Internet ( www.tatanano.com ). By this way we can save more cost and maintain the cheapest purchasing price rather than through retailers or resellers.

Physical Flow

From the diagram, we can know that Tata Nano will send the paths to the China after received the order from the sales office. After that, we will assemble a car at the workshop. Finally, send to the customers directly. From here, we can often provide faster delivery to customers because we are closer to the customers.

Payment Flow

Customers can pay bills by cash or do the financing from bank. Customers pay less by this diagram due to not need to pay extra commission to third party such as wholesalers or retailers. Tata Motor also can collect the payment more efficient.

Information Flow

Customers can get the information directly from Tata Motor such as new product, price development and so on. Tata Motor can more understanding customer's needs when receiving

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Manufacturer

Tata Motor at IndiaTransporters Warehouse

CustomersAssembly Workshop at Malaysia

Customers

Tata Motor at India Sale Office at Malaysia

Banks Banks Customers

Tata Motor at India Sale Office at Malaysia

Customers

customers, response calls and mailings or through internet blog. If customers have any need or complaint, we can satisfy them immediately by deal with customers directly.

Promotion Flow

Have two ways of promotion flow, directly and indirectly. Directly is we'll organize the marketing campaign, event and road show. By this way, we'll promote Tata Nano to target market by face by face and provide the opportunities to them try to drive the Tata Nano. Indirect ways are we will do the advertisement through media such as internet, TV, radio and also newspaper. By this promotion flow, Tata Motor aims to create brand awareness and increase the sales in the China.

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Tata Motor at India

Marketing Campaign/ Event

MediaSale Office at Malaysia Customers