Revamping Marketing Strategyof

TATA Nano

Presented By:

Kirtan Pandya (32)

Flow Of Content

• Initial marketing strategy STP Marketing Mix Brief Marketing strategy

• Proposed marketing strategy Communication process

o National levelo Ahmedabad level

Start of Dream!“I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”.

- RATAN TATA

STPGeographic Rural and Urban (Tier 2 , Tier 3)

Demographic Family size Nuclear family (married couple, children)

Income Middle class (80,000 – 1,20,000 p.a.)Lower middle (40,000 – 80,000 p.a.)

Psychographic SEC : B1 B2

Behavioral Benefits Economy, quality

User status First time users

Target market Executive two wheeler segment, second hand car user, lower income group people.

Positioning TATA intending to place in the mind of the consumers as a ‘People’s car’

Marketing Mix

ProductAn impeccable vehicle, covering middle and lower middle segments of the market, attractive, small yet comfortable

PriceOffering the lowest price in this segment

Place With the existing Tata dealers

(2n

d

largest dealer and service network in India)

Promotion Coming from the Tata’s stable, the Nano already created a brand image. The price of 1 lakh has offered enough promotion not only in India but also globally.

4P’s

Creative Brief• Problem

To spread Word of mouth as 1 Lakh car

• Audience Lower middle and middle class

• Support Economical car with sufficient features

• Core message To speak the language of the middle class

consumers, while highlighting the product's features including space, performance, mileage, safety and durability.

The campaign was a blend of emotionality and functionality.

Marketing strategies

• Online strategiesWebsite Social mediaNano game Online Advertisements

Marketing strategies

• Offline strategies Collaborations with banks Mall displays Dealer networkTV commercials and Print AdsAuto Expo (Delhi and Geneva)

What went wrong with Nano?

• Wrong positioning with some technical errors in the car

Proposed Marketing Strategy

Factors that support new marketing strategy

• Compared to advanced automobile markets, income levels in India are significantly lower and it results into very less market share (around 3%) of 4 wheelers of India in world market i.e. Enough scope to grow

• 65% population is below the age of 35• Perfect combination of quantity and quality!

Creative brief

• Problem To remove its tag of poor people’s car

• Audience Primary audience: Young executives Secondary audience: Middle class & lower middle class

• Core message Nano will be stepping stone to your career path

• Support Available in 3 variants with Basic features, superior quality and small price!

Communication Process Identify Target Audience

Determine Objectives

Design Communications

Select Channels

Decide On Media Mix

Establish Budget

Measure Results

Identify Target AudienceGeographic Rural and Urban

Demographic Family size Young SingleNuclear family (married couple, children)

Income Upper Middle (> 1,60,000 p.a. )Middle class (80,000 – 1,20,000 p.a.)Lower middle (40,000 – 80,000 p.a.)

Psychographic SEC : A1 A2 B1 B2

Behavioral Benefits Economy, quality

User status First time users and Potential users

Target market Young executives who has just started their career , second hand car user,

Positioning Tata Nano will be positioned as car which is for all the young people who believes they are hard working and who invest their money wisely

Determine Objectives

• To revamp the ‘Brand attitude’ for Nano• To change ‘Brand purchase’ intention for Nano• To portray Nano as an ‘Intelligent choice’

amongst competitor cars

Design Communications

Message strategy What to say? Rational and Social rewards

Creative strategy How to say it? Informational appeal

Select Channels

Personal Communication channel Advocate and Social channelsNon Personal Communication channel Advertising

Sales PromotionEvents

Decide On Media Mix

Advertising• Print &

broadcast Ads

• Billboards

Sales Promotion• Contest

s• Tie-ins

Events• Festivals• College

activities

Direct Marketing• Web

sites• Blogs• Catalogs

Personal Selling• Fairs &

trade shows

• Incentive programmes

Establish Budget

• Print media• TV Commercials• Outdoor Advertisements

India Level

Print MediaNewspaper Size

(Color Ad)Rate of 1 day

Total rate for 3 days in a week

Duration Total cost for 2 months

Times of India

Full page 14,85,000 44,55,000 2 months 3,56,40,000

TV commercialsChannels Timing (Slots) 1 day cost for airing

Ad for 8 times(30 sec)

Total cost for 2 months

MTV 7pm – 11 pm 15 Lakh 9,00,00,000

Aaj Tak 7pm – 11 pm 18 Lakh 10,80,00,000

Star Plus 7pm – 11 pm 20 Lakh 12,00,00,00031,80,00,000

Outdoor advertisement

Location Size (cm) Rate of 1 billboardfor2 months

Rate of 5 billboards for 2 months

Frequency Total cost

City 400*500 12,03,960 60,19,800 20 12,03,96,000

Highways 720*2400 18,06,680 90,33,400 20 18,06,68,000

30,10,64,000

Total advertising budgetTool Cost

Print 3,56,40,000

TV 31,80,00,000

Outdoor 30,10,64,000

Total 65,47,04,000

Ahmedabad Level

Outdoor advertisement

Location Size (cm) Rate of 1 billboardfor2 months

Rate of 40 billboards for 2 months

Main Cross roads& Near corporate houses

400*500 12,03,960 4,81,58,400

4,81,58,400

Events

• ‘Bright future with Tata Nano’• Fairs & trade shows by authorised dealers • Tie ups with corporates and driving schools

Total advertising budgetTool CostOutdoor 4,81,58,400

Events 20,00,000

Total 5,01,58,400

Measure Results

• Survey among the consumers asking them their previous and current attitudes towards Nano and their behavioral response

After first 2 months (Jan-Feb) Comparative increase in sales of Jan-Feb than previous 2 months

After 4 more months (March-April) Increase of 5% in sales

After 3rd quarter Increase of 10% in sales

After 4th quarter Increase of 10% in sales

References

• www.afaqs.com• http://www.business-standard.com/india/• www.tata.com/media/reports/inside.aspx?arti

d=7wzQgIGpR6g=

Thank you