Monday, October 7, 2019

Tata Nano Cross Culture Marketing Essay Example | Topics and Well Written Essays - 2500 words

Tata Nano Cross Culture Marketing - Essay Example The focus of the case study is on the Tata Ultra-Low Cost Car. The Tata Nano is a small car targeting the lower echelons in the society. The product has several distinct features such as size, engine size, design and speed. The car borrows from the principles used in the production of the Volkswagen Beetle and the British Mini popular with the Mr. Bean films. In all cases, the cars were produced to meet a certain market segment and increase the ease of acquisitions. The performance and efficiency of the cars may not be compared to other luxurious cars, but the main goal of the cars is to reduce cost of purchase, as well as maintenance (Hollensen, 2007, p. 287). The car has registered mixed fortunes in the market since it was officially launched into the market. The marketing of the product may be the weak link, but there are still other improvements to be implemented in the product to succeed. Additionally, the product will face stiff competition from Bajaj motors who also intend to produce fuel efficient cars that fit in the same category as the Tata Nano. Market Segmentation for Tata Nano Market segmentation is the process of dividing the market using a certain way in order to target a certain set of buyers or consumers. In the past, most companies employed mass marketing with the exception of the motor vehicle industry which initially targeted the rich, but later covered the middle class and the current trend are to incorporate the low end earners (Sandhusen, 2000, p. 34). To incorporate them, Tata Motors produced the Tata Nano. Tata Nano is nicknamed the â€Å"people’s car† based on the specification and performance stipulated by the company. The cars were rolled into the market in 2006 with the Nano have different specifications (Beverly and Thomson, 2011, p. 67). The four-door Nano is over 10 feet long and nearly five feet wide. The size indicates the targeted market segment because the bigger the size the higher the cost of the vehicle. In addition, it is powered by a 623cc two cylinder engine as compared to the standard four cylinder engines. The reduction in the cylinder numbers is to reduce fuel consumption. In the process of reducing the fuel consumption, other features are eliminated. The maximum speed of the car is 65 miles per hour, which is slightly slower compared to luxury cars. The location of the wheels of the vehicle at the extreme ends improves the handling. It has a small trunk for load carriage (Allen, 2010, p. 89). The product design ensures cost of production is reduced while ensuring that the needs of the customers are met. The product targets the low end users in India which has several challenges (Cleland and Ireland, 2006, p. 45). India is marked with a serious challenge in terms of transportation because of the increased traffic snarl ups and jams. These traffic jams leads to loss of fuel and affects people's wealth. The production of the Nano ensures easy transportation and lower cost even in t raffic jams due to the low consumption associated with the car. The lower echelons in the society have already been targeted by other companies such as the production of the Maruti 800 by the Maruti Udyog Ltd. The Nano has distinct advantages over the Maruti 800 because of the seating space, luggage space and cost. The product’s target market of the middle class and low echelons in the society must be evaluated to obtain brand association. The middle class in India cannot be

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