Internal and external market analysis for the Tata Group

July 12, 2017 Music

The Nano was the inspiration of Ratan Tata, the president of the Tata Group, who told his applied scientists to construct a auto that would sell for 100,000 rupees ( $ 2,200, GBP 1,414 ) to people who would otherwise be doing make with bikes and scooters. It is common to see Indian households of four siting on bikes with the male parent upfront, the female parent sitting side saddle with a babe in her weaponries and a kid sandwiched between them.

After doing a splashy public introduction here on March 23, the Nano officially went on sale from April 9-25. For a fee of around $ 6, clients could use to buy a Nano at more than 30,000 locations in 1,000 metropoliss across India. Orders could besides be submitted online at on the company ‘s particular Web site. Tata Motors estimates that the Web site received more than 1 million day-to-day hits during the engagement procedure. The sum of paid engagements calculates to about 25 billion rupees, or more than $ 500 million at current exchange rates.

But the Nano has been troubled about from its origin. The company ‘s production programs were thrown off kelter in 2008 when husbandmans, led by regional politicians, protested that the province of West Bengal had forcibly acquired land at low monetary values for a mill where the Nano and its parts would be made. Tata had to relocate the mill to another province Gujarat.

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Referee: 22/12/2010

Selling Plan

Referee: S. Rajagopalan. “ Marketing direction ” 2009, 2, p 31.


The house ‘s mission statement is the long-run vision based on a careful analysis of benefits sought by nowadays and possible clients and analysis of bing and awaited environment conditions. Specifying the concern in footings of goods and services instead than in footings of the benefits clients seek is sometimes called selling nearsightedness.

Business mission answers the inquiry: what concern are we in and where are we traveling? Ref: S. Rajagopalan. “ Marketing direction ” 2009, 2, p 31.

To go a universe category automotive technology and merchandise development Centre, and enable Tata Motors to go a universe category automotive company.


A selling aim is a statement of what is to be accomplished through selling activities. Marketing aims should be realistic and mensurable and clip specific. Aims communicate selling direction philosophises, supply way service as incentives, are a footing for control and force executives to clear up their thought.

Referee: S. Rajagopalan. “ Marketing direction ” 2009, 2, p 32.

The aim of presenting a four-wheeled all-metal auto with public presentation, safety and comfort besides had to maintain an oculus non merely on the client monetary value point framed in 1000-point letters on the applied scientists walls in the ERC but besides the fact that the undertaking has to do money as good.




Monetary value leader ( universe ‘s cheapest auto ) .

Excess characteristics for its section.

Alliance with Jaguar and Land wanderer.

Fuel efficient.

Advanced merchandise.

Fiscal support.


Merchandise hold.

Technical troubles.

Political protest.

Perceived to be a non lasting auto.

Least powerful engine.


Enter other developing state markets.

Go green.

Booming Indian auto market.

Get more powerful engine.

Add luxury to its auto.


New market entrants.

Safety issues.

Global diminution in auto gross revenues.

Huge debt.

Fuel monetary value hiking.


Monetary value leader: Tata Nano is the universe ‘s cheapest auto with its base theoretical account get downing at Rs 1, 00,000 approx 1,414 GBP. There is no other auto available in auto at that monetary value scope.

Excess characteristics for its section: Nano has a set of characteristics that are non available in any other auto of its section such as grips & A ; ORVM, forepart and rear fog lamps, digital fuel gage and tubeless Surs.


Nano CX

Nano LX

Maruti 800 AC

Alto LX

Alto Lxi

Santro GL

Santro GLS

Air conditioner

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Front Power Windows

Cardinal Locking

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Body Colored Bumpers

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Handles & A ; ORVM

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Front & A ; Rear Fog Lamps

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Tinted Spectacless

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Digital Fuel Gauge

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Tubeless Surs

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Alliance with Jaguar and Land wanderer: This strategic confederation for Tata Nano has built a support system for proficient and fiscal aid.

Fuel efficient: Nano is really fuel efficient as it gives around 42 stat mis for a gallon of fuel.

Advanced merchandise: Nano is a game altering merchandise as it is the first auto to tap into a market where merely two Wheelers where nowadays. The ground for this being its monetary value and fuel efficiency.

Fiscal support: Bing the pet undertaking for Ratan Tata, Nano has a good fiscal support.


Merchandise hold: The waiting clip for Nano is really long as it took 1 and half twelvemonth to finish its first 1,00,000 autos therefore its comparable to the waiting period for a Ferrari, Aston Martin or Lamborghini.

Technical troubles: Nano faced a few proficient troubles in its term of office of these two old ages. Couple of engine jobs were reported and some had digital panel misreading.

Political protest: Tata had to confront a political protest when it was approximately to get down its mill in West Bengal. The acquisition made on them was that it had acquired land for the mill illicitly. This tarnished the image a spot.

Perceived to be a non lasting auto: Nano is perceived to be a little less powerful auto. Therefore people do n’t anticipate to travel in Nano for long distance traveling which is oppugning the long term lastingness of the auto.

Least powerful engine: Nano has the least powerful engine for its section.




Maruti 800

Displacement ( milliliter )

624 milliliter

796 milliliter

Maximal Power

35 PS @ 5250 +/- 250 revolutions per minute

37.3 PS @ 5000 revolutions per minute

Maximum Torque

48 NM @ 3000 +/- 500 revolutions per minute

59 Nm @ 2500 revolutions per minute

Referee: 22/12/2010


Enter other developing state markets: Since the monetary value ticket of Nano is such it has an chance to come in markets that are still to develop.

Go green: The planetary phenomenon is to travel green therefore Nano shapers should look for greenish versions of Nano with different beginnings of fuel which are see green such as CNG or Solar powered.

Booming Indian auto market: Opposing the planetary tendency of diminution in gross revenues Indian market is holding an addition in demand for auto which can be a immense chance.

Get more powerful engine: Tata Nano has programs for enter in planetary phase which would necessitate it to increase its engine capacity. This would besides assist it in India.

Add luxury to its auto: The gross revenues figure indicates that the high terminal Nano has been the most popular boulder clay now therefore adding excess luxury characteristics such as forepart powered Windowss or a deck system could be an chance.


New market entrants: Nano had a immense initial success, sing these, large participants such as General motors and Nissan besides decided to come in into this extremist inexpensive auto section.

Safety issues: Since April Nano had a few safety issues a twelve of its auto all of a sudden caught fire without any evident ground which has shaken the trust of people on that auto.

Global diminution in auto gross revenues: Last two old ages have shown a lessening in demand for auto globally this could halter the hereafter plans for Nano when it is wishing to come in foreign shores.

Huge debt: Tata has acquired two large trade names, Jaguar and Land Rover for this ground Tata group has a debt of over US $ 2 billion. The planetary demand for auto has gone down therefore the gross from the two is besides less this is organizing a menace to Nano for overburden gross revenues and hope.

Fuel monetary value hiking: the recent rising prices in India as got the fuel monetary values to touch the sky this could do the possible purchaser think twice earlier geting any new auto.


Tata Nano is a little auto therefore has entered the little auto section which is one of the largest market sections for autos in India due to the of all time turning in-between category population of the state. The in-between category of India is non merely turning in Numberss but besides in power which is impacting the demands in the market for merchandises like auto which were considered merely an luxury for the rich people till the last decennary. Now the scenario has changed in-between category people do non see auto as luxury but a necessity, ensuing in the splurge of little autos being launched in India over the past decennary.

Tata Nano has understood this demand good and created an extremist cheap auto which will do more figure of in-between category households auto proprietors due to its pricing schemes.

Tata Nano has entered this section on footing of cost advantage as its universe ‘s cheapest auto and the pricing is low to an extent were its sometimes viing with two Wheelers section. This it self becomes a new market section in which Nano has a monopoly right now. Still Nano gross revenues are worsening because it made a error by non clearly sectioning its mark market it really did a mass selling in existent sense. It thought its mark market is the in-between category but this category has out grown to be called a focused market section non merely due to its big Numberss but because it has smaller sections with different set of demands which could be contrasting for illustration a demand of in-between category household in metropolis like Mumbai would be different from in-between category household in Pune.

Therefore the mark clients for Nano are non the in-between category but people who have aspirations of owing a auto but can non afford at the motion which can be divided into two classs town and rural:


Huge population in small towns which up boulder clay now merely owned a two Wheeler for transposing long distance. This are people who largely live in joint households and a two Wheeler like motorcycle or scooter could non fulfill the demand of the whole household when it came to transposing still due to fiscal restraints the lone option available for them was two Wheeler but now Nano can became an option for them


Graduation pupils in little and large towns and metropoliss who commute to their colleges, universities and their haunts etc. The big population in this metropoliss commute by public conveyance which is sometimes a cause of concern for the safety of this pupils in the heads of parents. Since most could non afford endowing a auto they had no option but Nano can alter this.

Young professional who have merely started their calling and are mounting the stairss of corporate ladder have an impulse to demo this growing and promise in the hereafter, whom Nano would be an attractive option.

Selling Mix

The term selling mix refers to a alone blend of merchandise, topographic point, publicity, and pricing schemes designed to bring forth reciprocally fulfilling exchanges with mark market.


Consumer ‘s bargain a merchandise or service non merely because they have a demand for it but besides because they perceive assorted characteristics attached to the merchandise in comparings to similar merchandises. Tata Nano as a merchandise has lot to offer when compared to the other autos in its section to call a few are

Air conditioner.


Cardinal Locking.

Body Colored Bumpers.

Handles & A ; ORVM.

Front & A ; Rear Fog Lamps.

Tinted Spectacless.

Digital Fuel Gauge.

Tubeless Surs.

4 old ages warranty.

Fuel efficient,

This all characteristics give Nano an advantage but still few betterments are required such as

More powerful engine.

Different fuel beginning such as CNG or H.

Music system or at least a wireless.

Air bags.

Anti brake system.

Topographic point

Topographic point refers to the existent location where the merchandise or service is sold and the through which medium is it sold. When Nano was launched it had to confront few jobs which caused the bringing of the initial Nano ‘s a batch of hold, there was confusion in the engagement procedure as there was no fiscal support for possible costumiers which resulted in lose of purchasers. The new thing that Nano did was people could book it online.

The betterments need to transport out in its distribution system is

Establish tie ups with traders that have reach up to rural multitudes which chiefly consist of two Wheeler traders as they have few salesrooms in rural countries this will assist them to make new possible purchasers.

Create plans to back up the consumers that can non finance themselves with 0 % involvement or something similar.

Establish stronger distribution concatenation by holding more warehouses or storage Centres which will cut down the delay period for the auto from booking to bringing.


Promotion is the medium through which we reach our clients heads and Black Marias. Nano has been Media ‘s star kid when it was launched and so lost its flicker subsequently. Tata group focussed on the monetary value when it was constructing its publicity but pricing entirely could non entice the consumers for long as person other rival would copy that. Now Tata group needs to concentrate on the intangible benefits that consumers can be drawn to which can non be copied easy.

Reaching and informing about the merchandise to above discussed mark market section is really of import. Therefore a publicity designed to suit it is really necessary for the merchandises success.

Therefore Tata group should advance itself in such a mode where it can make its mark market expeditiously and efficaciously.

In order to better gross revenues of Tata Nano, Tata motors has come up with a new Ad commercial for the universe ‘s cheapest auto. In a effort to advance the safety facet of Tata Nano, the new Ad commercial of Nano carries a tagline, ‘Key to your felicity ‘ . In the new Ad commercial, Tata Nano is shown whizzing through narrow roads and bouldery terrains and the Ad construct is of a little miss waiting for her male parent to come back place safely and in a blink of an eye.

Tata group has been advancing its merchandise via Television advertisement, web and through large intelligence documents such as Timess of India, Hindustan times, DNA etc. The range of these publicity media is great when considered for large and little towns therefore good for assailing the graduation pupil section and the new professional section. But when it comes to making the rural countries it ‘s neither effectual nor efficient. A better option would be the wireless as it has a greater range in the rural parts of India. Another option would be utilizing local linguistic communication newspapers as they have larger circulation in their several rural countries. Last route show is more likely to pull big crowds.

Monetary value

Monetary value is the most easy changed characteristic of a selling mix. Ratan Tata ‘s dream of making a people auto came true with Nano due to pricing scheme as there is no other auto in the universe with such a low monetary value ticket attached to it and still has a nice trade name name associated to it.

Tata group achieved enormous efficiencies when it created basal theoretical account of Nano for merely over 1 lakh rupees.

The gross revenues figures of Tata Motors shows that 20 per centum of clients chose the no-frills Nano Standard, 30 per centum opted for the mid-level Nano CX, while the staying 50 percent went with the top-end Nano LX which is over 2 lakh rupees. This means that the consumers are ready to pay duplicate the sum of money for a luxuries theoretical account of Nano alternatively of a base theoretical account.

Therefore Tata group should see adding more luxury to establish theoretical account with some alteration in monetary values and relaunching it in the urban section and for the rural multitudes merely alter its monetary value which would be suited for rural countries like 80- 90 1000 by acquiring more economical so that it can be more competent to contend the two Wheeler laterality in rural country.


In order to implement the new selling mix Tata group will hold to do some alterations such as: – `

Start advertisement in regional linguistic communication newspapers.

Make more people aware about Nano through the wireless.

Advertise its dependability and cost factor in Television advertisement.

Add new safety characteristics such as anti brake system and air bags.

Add basic characteristic such as a wireless in its base theoretical account and a music system in its LX theoretical account.

Make proficient alteration and give future Nano a more powerful engine.

Search for more greener fuels till so launch Nano with CNG option as there is no major alteration required in design or engine when doing a displacement from Diesel to CNG. Now CNG is available in most of the parts of INDIA.

Establish tie ups with traders of two Wheelers in rural countries and for the long tally choose strategic topographic points for salesrooms and warehouses from where both metropolis and rural mass can be targeted.

Come up with 0 % finance strategy by holding and bind up any nationalised bank so its accessible to both rural every bit good as metropolis crowd.

Make a more economical version of base theoretical account Nano for rural market section which can be priced around 90,000 rupees and a more luxuries one for metropolis section which can be priced around 1,40,000 rupees.


For control mechanism Tata can make the following Design a feedback signifier through which we can understand

The consciousness of assorted option available in the market,

Fiscal position of the person,

Reason for the demand of auto,


Finance option used,

The version of Nano bought and

If non so what was the ground of denial.

Ask to make full a feedback signifier from of all time single that enters any autos salesroom or visits their web site. This will ensue in apprehension of: –

whether the mark market is cognizant of the merchandise,

Are we able to project the image which is required by mark market,

Is the fiscal support given by us utile or non,

Which version is most popular so that an precedence can be given for assorted grounds and

The grounds why other auto are been chosen over Nano so that necessary alterations can be done.


Though auto gross revenues have shot up across India, because of an economic system that is turning at about 9 per centum yearly, gross revenues of the Nano have been falling for the last four months. Its shaper, Tata Motors, sold merely 509 Nano ‘s to its traders in November – a blunt contrast to the 9,000 it delivered in July

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The followers are the ground for Tata Nano ‘s diminution: –

Production holds.

Fires in some of the instances.

Rival autos like the Maruti Suzuki Alto have overtaken the Nano.

Lose of media coverage.

Wait clip for its bringing.

Learning aims achieved

The learning result of utilizing appropriate selling nomenclature, constructs, theories and theoretical accounts applied in a assortment of selling scenes. As the procedure for analyzing the company, market and the merchandise in diminution I started understanding the assorted nomenclature used in assorted constructs. This construct and theories were used as a tool to compare by assorted administrations to cognize its standing against rivals which proved to be useless some times.

A smattering of the administration pattern constructs and theories in existent market scenes at that place focus in on gross revenues and grosss on which they can advance the company and merchandise but non on advancing the grind or pestel analysis of the company

Second larning result is to depict the constituents of a professional selling program. Every book talked about the importance of a selling program but none specify one which is the best selling program. The ground I came upon is that there nil as one good selling program or its constituents do every administration sees itself in a different manner each market unambiguously as it all about demoing the client the trade name and distinction so at that place can non be one good selling program to demo uniqueness of every company.

The last learning result I could associate was the dynamic nature of market. Proved to be 100 % true as many companies are missing behind merely because there consumers they targeted have moved on or changed the demand they had to a newer one and the company is still seeking to sell on the old perceived demand. Thus the market is every dynamic presents.

Expectations at start of faculty

The followers were the outlooks at the start of faculty: –

Come to cognize what a trade name is, how is it made, why is it so valued.

What are assorted theories in selling

Who are the people how started selling as a concern maps itself.

Procedure of larning

The procedure of acquisition was really different to what i use to see in my degree degree survey. Back in my state every facet of topic is taught to us and we respect our instructors for the cognition they impart on us. We have six months to analyze a new faculty so ample of clip is given to us to hold on the cognition. So there is a huge difference from that I have experienced here the instruction here is more of ego betterment instead to be taught. So the construct is introduce to us by the instructor or professor an so we are left to shirk around that construct entirely and come up with our really ain reading of it.

BIBLOGRAPHY 14/12/2010.

Referee: Udai Pareek 2004, “ understanding organizational behavior ” .

Kathryn M. Bartol and David C. Martin 1998. Management. 385

Robbins, Stephen P. 1988. “ Organizational Behaviour construct contentions ”

Kumar, Arun. 2002, “ Organizational Behaviour theory and pattern ”

Dwivedi, R. S.1999, “ Human Relations and Organisational Behaviour – A Global position “ .

E-learning in little administrations Sally Sambrook Education + Training Volume 45 A· Number 8/9 A· 2003 A· 506-516

Hertzberg ‘s theory of Human Motivation ( 1959 ) .


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