1.1 BACKGROUND OF STUDY
Tata Motors came out with the World’s least expensive car Tata Nano in 2008. The making of this compact vehicle involved a lot of innovation and the pricing, sourcing, distribution and marketing strategies of Tata Motors also had to be revamped only for this particular car. The major target market for Tata Nano was the low income individuals and families, the individuals who want to move from a two-wheeler to a four-wheeler and the medium and high income families looking out for an inexpensive second vehicle. The pricing strategy for the vehicle was penetration pricing. The sourcing strategy had some changes over the years while the major distribution channel model was the hub and spoke model and an unconventional…
customers. Tata Motors went from the leading automobile manufacturer and the number 3 passenger vehicle brand in India to a decrease in estimated sales and a deteriorating brand. Multiple factors are taken into account with this decline including the economy, competition increasing, external factors, and the brand. Many of these factors can be tracked to make predictions on how they will affect a company but cannot be fully controlled.
The leading problem Tata Motors needs to focus on is the…
Tata Nano: The People’s Car
I. Key Marketing
While the Tata Nano may have been touted as a game changer in the auto industry in India as the least expensive vehicle a “car for everyone” it lacked a clear pricing strategy, market segmentation strategy, and an import-export strategy.
II. Situation Analysis
Company: A conglomerate that has international ties to engineering, energy, information systems, materials, services,…
CASE BRIEF – TATA NANO
Tata developed and started manufacturing Tata Nano, “the cheapest car in the world”, and has to decide the level of production capacity. Should Tata be conservative risking to cede market to competitors or should they make an aggressive commitment?
Tata worked years to develop a ULCC (Ultra Low Cost Car) targeting the bottom end of the pyramid of the Indian population. The development of Tata Nano was based on 3 main targets: cost lower than Rs 1…
manufactured by Tata Motors is Nano. Nano is distinct from all other cars as it is the world’s cheapest car., Nano was widely publicized as a 1 lakh (US$1,700) car during the period of its launch. It was considered as one of the milestones in the history of automotive industry.
Since its launch 4 years back though, the price has increased. Only the very first few customers were able to purchase the car at that price. Present day, the basic price for the Nano is around 150,000. Nevertheless,…
Company Market Share
(as in August 2014)
Maruti Suzuki India Ltd. 47%
Hyundai Motor India Ltd. 16%
Honda Cars India Ltd. 8%
Tata Motors Ltd. 5%
Mahindra & Mahindra 6%
Maruti Suzuki India Limited has been highly successful in rural areas and smaller towns in India because of its excellent distribution and service network. It is mainly known for its small car segment with popular model being Swift, Dzire, Alto, Zen and Ritz. It is the largest automobile…
Given Articles talks about the automobile industry of India in which Honda Jazz makes a another entry with dual variant cars segment in India i.e. both Diesel as well as Petrol version to compete with cars like Maruti Suzuki Swift and Hyundai Motor Elite i20 in the price range of 5.3 to 8 lakh and India became the first country where Jazz is going to launch a diesel version engine. As in Asia 30% sales of Honda motors is contributed by India so they are very optimistic in investing in…
'Nissan's Approach to Supplier Development'
From Burnes, B. (2014) 'Managing Change' 6thed. pp.51-55
Nissan's Sunderland assembly plant is the most productive in Europe and produces almost one in every four cars built in the UK. However, when it opted for a UK base in 1984, the company faced a major challenge in bringing its European suppliers up to the same standard as those in Japan. Nissan recognised that European – especially UK – component suppliers fell far short of Japanese standards of…
Maruti Suzuki Case Analysis
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The Business world in India is marked by strong competition, uncertainty, non-linear growth, turbulence and all this is very much seen in the auto mobile industry. There is lot of…
Overview of Hyundai Creta car insurance
The second largest car manufacturer company Hyundai Motor has launched Creta to enter into SUV car segment. Hyundai Creta is a picture-perfect smarter SUV from Hyundai Motor and it came into appearance on July 2015 in India. The new premium SUV has a strong outer structure made of Advanced High Strength Steel and Ultra High Strength Steel. The refined modern look adds to the charm of the vehicle. So if you own this car, it is important to have an…