We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

Business Analysis of Tata Nano

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Executive Summary

Tata Nano is the first auto to be said to be the common adult male ‘s auto. It is sold in place state India around Rs 1-lakh i.e about USD 2000. It is manufactured by Tata Motor Limited, the largest car company in India. It ‘s Chairman, Mr Ratan Tata envisions that Tata Nano to go a “People car” which is low-cost by about everybody. Tata Nano was foremost launched in India on 1st April 2009 and expected to be in Indian market by July 2009.

Since launching, it has created a immense bombilation all over India. Within the first two yearss of lunching, it has received 5500 booking. The s support increasing every twenty-four hours since the launching.

Don't use plagiarized sources. Get Your Custom Essay on
Business Analysis of Tata Nano
Just from $13,9/Page
Get custom paper

What makes Tata Nano so cheap? Basically, by doing things smaller, lighter, make off with superficial parts and alter the stuffs wherever possible without compromising the safety and environmental conformity. It is said that Tata Nano has better millage than Toyota Prius and same gas emanation as a scooter.

Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two mills i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution Centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano autos will be distributed through these distribution centres merely. Order can be made vide these distribution centres or its web site.

There are three types of Tata Nano auto available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot conditions in Malaysia, merely Nano CX will be brought to Malaysia and will be sold here. The merchandising monetary value of Nano CX in Malaysia is RM 13,704 per unit. It is estimated that gross net income for the first twelvemonth would give xxx, 2nd twelvemonth thirty and 3rd twelvemonth thirty. Estimated monthly instalment payment is xxx for seven old ages period. With this monetary value, the mark market is really broad which includes those with income RM 2000 per month, pupils, female workers and scooters ‘ riders.

2.0 SITUATION ANALYSIS

Tata Motors Limited is India ‘s largest car company, with grosss of Rs. 35651.48 crores ( USD 8.8 billion ) in 2007-08. It is the leader in commercial vehicles in each section, and among the top three in rider vehicles with winning merchandises in the compact, midsize auto and public-service corporation vehicle sections. The company is the universe ‘s 4th largest truck maker, and the universe ‘s 2nd largest coach maker. In March 2008, Tata Motors acquired Ford ‘s UK based auto trade names Jaguar and Land Rover ( BBC News, 2008 ) .

Harmonizing to Ratan Naval Tata ( Chairman of Tata Group ) , the demand for an invention like Nano has got to make something for the people of India and conveyance. Unavailability and hapless quality of mass conveyance is a common job in India. In a two Wheeler, father driving with senior kid standing in forepart and married woman behind keeping a babe is norm in this state. Therefore, this is a comparatively an insecure manner of transporting a household. Therefore, with this in head Tata Nano was created as a safer signifier of conveyance.

As one of its aims is to go an Indian concern pudding stone operating in many states, Tata Nano will be introduced in Malaysia.

2.1 Market Summary

It is estimated that Malaysia has more than 5 million bikes on the route, compared to over 4 million autos ( ICE, 2001 ) .The bulk of bike purchasers or users does non have a auto and belong to the lower and middle-income group. A significantly larger per centum of bike users in Malaysia are male.

2.1.1 Target Markets

The company is aiming lower income group with household, first-time purchasers of auto ( fresh alumnuss ) and bike proprietors.

2.1.2 Positioning

Tata Nano will place itself as the universe cheapest auto and yet does non compromise the quality, safety and environment. This placement will be achieved by leveraging Tata Nano ‘s competitory border: industries experience from the parent company Tata Motor who has been in vehicles industries ( commercial, riders & A ; public-service corporations ) since 1945. Tata motor has good supplier-manufacturer relationship with more than 100 constituents.

2.1.2 Demographics

Population, demographics, rural urban, critical statistics from Malayan car study.

2.1.4 Geographies

Tata Motors has targeted the urban country in Malaysia. This is traveling to be Kuala Lumpur and Johor Bahru. There are 5 million bike riders in Malaysia.

2.1.5 Distribution reappraisal

Merely like in India, Tata Nano will allow topographic point as an low-priced auto even in foreign markets. ‘Easy-to-assemble kits ‘ will be imported from Tata in India. The auto so will be assembled at pre-defined locations. The proposed locations are Shah Alam, Selangor and Pasir Gudang, Johor Bahru. It will be so redistributed to salesrooms that will be set up based on part. 30 gross revenues offices will be opened throughout Malaysia.

2.1.6 Competitor reappraisal

The chief rivals are Proton, Perodua, Toyota and Honda. The tabular array below indicates the market portion of the chief rivals in the car industry for the twelvemonth 2008.

2.2 SWOT Analysis

The undermentioned SWOT analysis investigates the Malayan political, economic and concern environment. The undermentioned determination are adapted from Malayan Auto Report 2009.

a. Malaysia Political SWOT

Strengths

Malaysia is a successful illustration of a democratic Islamic province. Despite mutters of discontent among hardline Muslims in some provinces, multiracial Malaysia is improbable to abandon moderate Islam

Failings

The Malay half of the population holds a constitutionally enshrined particular place in society, amounting to positive favoritism in non merely occupations, but besides wealth.

Opportunities

The weak public presentation by the opinion Barisan Nasional in the general elections held on March 8 2008, has paved the manner for the stalled reformer docket -promised by Prime Minister Abdullah Ahmad Badawi back in 2004 – to garner gait. This would assist to open up the state ‘s closed political system and better transparence and answerability within cardinal establishments.

Menaces

Cultural tenseness will stay a non-violent, but simmering, job, so long as there remains a menace that the influence of hardline Islam could resuscitate. For now, nevertheless, the hardliners have lost much of their political clout. The hapless screening of Barisan Nasional at the 2008 general elections has put Prime Minister Abdullah under intense force per unit area from both resistance parties and members of his United Malays National Organization ( UNMO ) party, who blame him for the alliance ‘s worst of all time consequence.

b. Malaysia Economic SWOTaysia Economic SWOT

Strengths

During the past four decennaries, Malaysia has transformed itself from a commodities-dependent backwater into a major universe beginning for electronics and computing machine parts. Malaysia is the universe ‘s largest manufacturer of gum elastic, palm oil, Piper nigrum and tropical hardwoods, and is besides a net exporter of rough oil. All this provides a solid platform for economic growing

Failings

Malaysia ‘s comparative insularity from planetary energy monetary value dazes is being eroded. Within the following 5 old ages Malaysia could go a net importer of oil Malaysia ‘s economic openness can be every bit much of a load as a benefit, since it confers a high grade of exposure to planetary growing and capital flows.

Opportunities

The chance for private-sector-led growing will better as the authorities continues divestment of province shareholdings in order to raise financess to contract the budget shortage.

Menaces

Wagess are higher in Malaysia than in a figure of its rivals, such as China and Vietnam, which could be a long-run hinderance to economic enlargement. To keep its competitory border, Malaysia needs a steady watercourse of inward investing Export fight could be eroded if the exchange rate continues to appreciate markedly.

c. Malaysia Business Environment SWOT

3 Strengths

4 Standards of corporate administration in Malaysia have greatly improved since the Asian fiscal crisis at the terminal of the 1990s – more so, in fact, than in many adjacent states. Foreign companies, or at least foreign fabrication companies, looking to make concern in Malaysia will go on to be welcomed with unfastened weaponries, with the authorities offering munificent revenue enhancement interruptions and grants.

Failings

State subsidisation of monetary values will stay a peripheral but relentless portion of day-to-day economic life in Malaysia. Making concern in Malaysia will ever, to some extent, average covering with the politically well-connected. Large building undertakings – and large contracts for foreign building houses – are improbable to be every bit much of a precedence for Malaysia ‘s authorities as they were under the old disposal of former premier curate Mahathir Muhammad.

Opportunities

The chance to put in Malayan province assets could better. The authorities, if it sticks to its word, will carry on its biggest of all time divestment of province shareholdings. Malaysia is eager to vie globally in banking, and although it presently lacks a domestic title-holder, with 10 chief establishments in the market, bank consolidation is a strong possibility.

Menaces

The waterways and transporting lanes that surround Malaysia will go on to present the menace of buccaneering and terrorist act Malaysia is at hazard, conceivably, of losing out to China in the race for foreign investing. Penang, one time the pillar of Malaysia ‘s electronics industry, has seen an hegira of foreign houses, with Seagate, Motorola and Solectron all switching production elsewhere in Asia.

d. The followers will be cardinal strengths and failing within the company and describes the chances and menaces confronting Tata Nano.

Strength

The internationalization tactics so far has been coup d’etat to local directors in new manner, and merely to transfering a twosome of higher directors from India into the new trade. The cardinal point is that Tata has been able to portion thoughts. The company had a successful understanding with Italian mass merchandise Fiat in 2006. This has enhanced the merchandise aggregation of investings for Tata and Fiat as per understandings of production and thoughts sharing. An illustration, Fiat Palio design was introduced in 2007 by Tata, and both the companies have an contract to make and accomplish their Goal at Central and South America.

Failings

The Tata Nano rider travel auto merchandises are depends upon 3rd and 4th coevals platforms, which is a disadvantage of Tata Motors Limited with competition others auto makers. One which is non recognised in English the word ‘tat ‘ agencies ‘rubbish ‘ .

Opportunities

In 2008 Tata Motor ‘s announced that they had successfully purchased the foreign auto assembled Land Rover and Jaguar from Ford Motors for United land ?2.3 million. World ‘s Two luxury auto trade name have been added to Tata Motors portfolio of trade names, They have a opportunity to show Company vehicles in the luxury sections. Tata Motors Ltd have taken Daewoo Motor ‘s Commercial vehicle concern in 2004 for USD $ 16 million. Tata Nano is the most inexpensive auto in the World – merchandising at little more than a minibike. The new emerging industrial of the states such as India, S.Korea and Republic of China will hold a thirst for green goods and distribute vehicles in low-priced rider. These are the advantages. However the company has put in topographic point a proactive Corporate Social Responsibility sing to turn to possible tactics that will do its operations more sustainable. The scope of Super Mileage fuel efficient coachs are powered by efficient, atmosphere friendly auto engines. The coach has automatic organic clasp with supporter aid and better air consumptions that will moo fuel ingestion by up to 10 per centum.

Menaces

Other auto makers companies are in rider auto concern for 40 or more so 40 old ages. Therefore Tata Motors Limited has to catch up in footings of quality and thin production. Sustainability and environmentalism could intend excess costs for this low-priced manufacturer. This could impact its underpinning competitory advantage.

2.3 Aims and issue

We have set aggressive yet accomplishable aims for the first, 2nd and 3rd twelvemonth of market entry.

First twelvemonth aim ( July 2009 to December 2009 )

We want to accomplish 25,000 units of gross revenues deriving ….market portion % get from market size

Second twelvemonth aim ( JAN 2010 TO DEC 2010 )

We want to accomplish 10 % addition in quarterly footing ( RM 48,600 )

Third twelvemonth aim ( JAN 2011 TO DEC 2011 )

We want to accomplish 10 % addition in quarterly footing ( RM 53, 460 )

1.0 Selling MIX STRATEGIES

3.1 Merchandise Schemes

The merchandise scheme which will be adapted would be the consecutive merchandise extension, which is marketing the auto in another foreign market without any alteration. This is because there would be no extra merchandise development cost, fabrication alterations, or new publicity.

3.2 Product Review

* There are three discrepancies in the Nano scope: Nano, Nano CX and Nano LX

* Merely the Nano CX discrepancy would be introduced in the Malaysia Market for the first phase

* Tata Nano LX will introduced in the Malaysia Market during the undermentioned twelvemonth

The auto has achieved its low monetary value by minimising costs on unneeded “luxuries” , the basic Nano comes without forepart and rear fog visible radiations, without a warmer or air conditioning, without anti-lock brakes, merely one individual windshield wiper, manually operated Windowss, manual maneuvering with no air bags, bantam 12” wheels, plastic organic structure parts joined with adhesive alternatively of more conventional metal and welding and a two cylinder 623 milliliter engine that provides a monolithic upper limit velocity of 65 miles per hour ( around 105 kilometers per hour ) .

Among the characteristics of the auto are:

a ) Stylish and comfy

The Passenger Car, designed with a household comfortable in head, has a luxury rider infinite with brilliant leg infinite and caput room. It can luxury sit 4 individuals. 4 doors with first-class siting flawlessness make immersion and egress easy.

with a mensurating length of 3.1 meters, breadth of 1.5 meters and a tallness of 1.6 meters, with equal land clearance, it can effortlessly maneuver on busy roads in metropoliss every bit good as in rural countries. Its semi volume construction, with tyres at the sides and the power train at the rear, enables it to unambiguously unite both infinite and maneuverability, which will put a benchmark among little autos.

B ) Fuel-efficient engine

The People ‘s Car has a back wheel thrust, with aluminum, 2 cylinder, 523 milliliter, 33 PS, multi point fuel injection gasoline engine. This is the first clip that a 2 cylinder gasolene engine fitted in a auto with a one balancer shaft. The thin design scheme has helped understate weight, which helps maximize public presentation per unit of energy consumed and delivers high fuel efficiency. Performance is controlled by a specially designed electronic engine direction system.

degree Celsiuss ) Meets all safety demands

The People ‘s Car ‘s safety public presentation exceeds current regulative demands. With an all metal organic structure sheet, it has a solid rider section, with safety characteristics for e.g crumple zones, invasion immune doors, seats belts, strong seats and anchorages, and the rear tailboard glass bonded to the organic structure. Tubeless tyres farther enhance safety.

vitamin D ) Environment-friendly

The People ‘s Car ‘s tailpipe emanation public presentation exceeds regulative demands. In footings of overall pollutants, it has a lower pollution degree than two-wheelers being manufactured in Malaysia today. The high efficiency besides ensures that the auto has low C dioxide emanations, thereby supplying the duplicate benefits of an low-cost transit solution with a low C footmark.

3.3 Stigmatization

Trade names identify the beginning or shaper of a merchandise and allow consumers – either persons or administrations to delegate duty for its public presentation to a peculiar maker or distributer. Branding is induing merchandises and services with the power of a trade name. It ‘s all about making differences between merchandises. For branding schemes to be successful and trade name value to be created, consumers must be convinced there are meaningful differences among trade names in the merchandise or service class. In Tata Nano ‘s instance, the stigmatization scheme used is corporate name combined with single merchandise names. This company ‘s name legitimises and the single name individualises the new merchandise

3.4 Product Strategy

The Tata Nano CX, including all the characteristics described in the earlier Product Review subdivision, will be sold with a three-year guarantee or 100,000km guarantee, whichever comes foremost. We will present the Tata Nano LX during the undermentioned twelvemonth, after we have established our Tata trade name. The trade name and logo will be displayed on the auto every bit good as in all selling runs.

3.5 Pricing Schemes

The Cost monetary value is an estimated USD2, 420 or tantamount to RM8,954, which includes import revenue enhancement, responsibilities excise, gross revenues revenue enhancement, cargo costs and assembly cost. The merchandising monetary value for the Malayan market is RM13,704.00, which is inclusive of standard accoutrements, but exclude route revenue enhancement ( RM70.00 ) , enrollment fees ( RM150.00 ) , figure home base ( RM50.00 ) and ownership endorsement fee ( RM50.00 ) , gross revenues revenue enhancement ( RM1370.40 ) which amounted to RM320.00. The On-The-Road monetary value will be RM15797.40.These monetary values reflect a scheme of taking a portion from established rivals, such as Perodua ‘ s theoretical account of Kancil and Viva.

3.5.1 Puting the monetary value – selecting monetary value aims

Tata Nano Malaysia ( TNM ) has set major three aims in its attempt to place itself in the Malaysia Automotive market. The aims are: Survival, maximal current net income and maximal market portion.

a. Survival

Intense competition from Malaysia ‘s 2nd auto maker, Perodua for a portion of the automotive market section for the below 1,000 milliliter class will spur TNM to guarantee that the auto monetary value screens variable costs and some fixed costs. In this instance, endurance is a short term nonsubjective as in the long tally, TNM will add value such as added safety characteristics to the Nano scope.

B. Maximal current net income

TNM has set a monetary value that will maximise current net incomes, hard currency flow and return on investing, after taking into consideration the demand and costs involved. As this class of little foreign autos section has non been truly tested by other makers, hence the demand is instead hard to gauge but TNM is confident of a good response towards its entry into the Malayan market.

c. Maximum Market Share

For the Malayan market, TNM will implement the market-penetration pricing, which is to put a low monetary value for a new auto in order to pull a big figure of purchasers and a big market portion. This will be done by accomplishing high gross revenues volume, which will consequences in falling costs, leting the company to cut its monetary value even further. We are positive plenty that the Malaysia auto market is extremely monetary value sensitive, as a low monetary value produces more market growing. TNM is besides confident that production and distribution costs will fall as gross revenues volume additions and the low monetary value of Nano autos will assist to maintain out competition and keep its low-price place. The low-price entry will supply Malaysians consumers with a feasible option to Perodua -Malaysia 2nd National auto. Further liberalisation is expected as Malaysia implements the ASEAN Free Trade Area understanding, which commits the Malaysia Government to trash foreign auto revenue enhancements.

4.0 PROMOTION STRATEGIES

4.1 Aims of Promotion Strategies

Before determine the publicity schemes, we need to really clear about what are the aims we need to accomplish. We know as above, our missions are to advance Tata nano in Malaysia and increase the gross revenues quarterly. Tata Nano is really new for Malayan, they feel fresh with this new trade name and construct of this auto. Tata Nano will acquire into Malaysia market in July 2009.

So foremost of the aim for publicity schemes are aims to make trade name consciousness and concept/knowledge of this new auto – Tata Nano. This is the cheapest auto in the universe and explosion into the worldwide market in the short clip. But still is the new trade name for the Malaysians, so we do the advertizement and form the event or run in sufficient item to set up the good trade name attitudes. Brand consciousness is of import to supply a foundation for trade name equity.

After that, our 2nd aim is knowledge and persuasive. We aim to make liking, penchant, strong belief, and purchase of a Tata Nano auto. We can make the comparing with other autos which are higher purchase monetary value and this monetary value is non every people will be low-cost particularly lower income households and pupils. Beside that we will convert current buyers that we will give the possible client to basking the good experience with Tata Nano by give attempt to drive the Tata Nano before purchasing the auto. And besides will supply them warranty to the Tata Nano.

We will form all the publicity schemes with lower cost to keep the lower purchase monetary value for the Tata nano in Malaysia.

4.2 Promotion Tag line

‘Have Fun, Pay Less, acquire more with Tata Nano ‘

Why we set up this ticket line? Because this is do all the Malayan to easy to retrieve Tata Nano and experience happy all the ways with Tata Nano. Tata Nano is safety and you can go everyplace by Tata Nano with your household or friends with merriment, but you merely necessitate to pay all of this at lower monetary value -Pay Less & A ; Get More.

Beside that we can basking particular merriment with Tata nano, our Earth besides will experience happy with Tata nano because Tata nano besides is the environment friendly auto.

4.3 Ad Plan

We aims to inform Malaysians this is the cheapest auto in the universe and persuade Malaysians to purchase Tata Nano due to this auto is safety, utile, all in good quality and besides environment friendly by developing an advertisement plan.

4.3.1 Online Advertisement

First measure we start before lunching Tata Nano, we do the online advertizement. Tata Nano created a Web site – www.tatanano.com – on March 2009 to better communicate with the clients. In the Web site, we posted the exposure classs and pictures to supply clients the information and particular characteristics of Tata Nano and convey them inside the company. In add-on to exposures and pictures, the web site links to recent intelligence about Tata Nano and infinite for public feedback.

Besides that, Blogs have become an of import mercantile establishment for word of oral cavity which are on a regular basis updated online journals. Blogs is conveying together people with common involvements. They vary broad and can act upon a huge audience due to many cyberspace users have read Blogs. We can set up the web log web and carefully supervising to happen out what ‘s on people ‘s heads particularly the possible clients. This is a cheapest and good manner to construct up trade name consciousness.

4.3.2 Television Advertisement

Television advertizement is really expensive but this is the most powerful to execute the Tata Nano to the populace by showing Tata Nano attributes and persuasively explicating their corresponding consumer benefits. By lower advertisement budget, we can non make the Television advertizement in whole twenty-four hours, so we merely take the premier clip ( 7pm – 11pm ) to put the advertizement. By decently designed and executed Television advertizement can better trade name equity and affect gross revenues and net incomes.

4.3.3 Radio Advertisement

Most of the Malaysians listen to the wireless daily. Now a twenty-four hours have many installations such as MP3, manus phone and so on, is convenience for the people to listen the wireless anytime at anyplace, This is a inexpensive and permeant medium for us to make the trade name consciousness by repeatedly listen the advertizement and the trade name name. Advantages of the wireless advertizement are flexibleness, speedy response and besides more effectual media for making teens.

4.3.4 Newspaper Advertisement

Beside that the wireless, most of the Malaysians besides will saw a newspaper everyday. So this is good market coverage. From here, Tata Nano can acquire the wide credence and good repute from Malaysians. Newspaper advertisement is cheap.

4.4 Marketing Campaign

This Marketing run is base on every four month:

4.4.1 Marketing Campaign for July 2009 to October 2009

Tata Nano will lunch at Malaysia on July 2009. Establishing plan is really of import for positioning which is the act of planing Tata Nano and image to busy Malaysia in the heads of the mark market. Establishing plan besides is one of the publicity schemes to construct consciousness, through establishing at public centre Tata Motor will present the Tata Nano to market.

In July and August, we focus on selling run which will take topographic point at all the IPTA and IPTS which have organize the convocation, by supplying merchandise show and streamer ; and the peoples can hold the experience with Tata Nano by provide the chances to drive Tata Nano around the campus. Subject for this run is ‘Good hereafter with Tata Nano ‘ . Reason for this selling run is one of our marks are pupils such as fresh alumnus who merely acquire the new occupation and besides the international pupils. Fresh alumnus need the transit in their on the job life but they ca n’t afford to purchase the excessively expensive auto ; international pupil merely necessitate the auto which is economic system and utilizing it in short period around 2-3years for their pupil life in Malaysia. This is cheapest cost by event or run in the campus.

In September and October, Malaysians will observe two large festivals together, there are Hari Raya Puasa Aidifitri and Deepavali. So we can concentrate on lower income group with household particularly those are come from Malay household or Indian household. Use the mail, telephone, facsimile, e-mail to pass on straight with them. Base on historical, more of the Malay or Indian will purchase the auto before festival. ‘Raya with Tata Nano ‘ can be the subject for our run at this period, and advance them Tata Nano is cheapest and safety.

4.4.2 Marketing Campaign for November 2009 to February 2009

In November and December, Malaysia have the Mega Gross saless due to Merry Christmas and New Year in the terminal of the twelvemonth at whole Malaysia so that have many people will travel to shopping. We can form the event at shopping centres in Malaysia such as KLCC, Midvalley, Berjaya Times Square, and Sungai Wang by supplying merchandise show and streamer.

On January and February, most of the employees in Malaysia will acquire the fillip in this period so the buying power will increase. Beside that Chinese New Year is at February. Send the booklets to the little and average company or office and do the debut or briefing to them. Follow by mail, telephone, facsimile or electronic mail to developing effectual communicating.

4.4.3 Marketing Campaign for March 2009 to June 2009

We will make the route show at every province ( whole Malaysia ) . We can hold the route show at the centre market such as all market at all the province. Have many people will travel to market early forenoon to purchase the vegetable, take the breakfast or purchase the necessary things. Most of them are adult females or homemakers who may be come from the lower or average income household. Some of them go to Pasar by bike or by coach. There are our mark markets. We can advance Tata Nano to them such as, Tata Nano is the cheapest auto in the universe, Get the Tata Nano to be 2nd auto for their household member particularly for their kids or elder parent, ‘Easy life with Tata Nano ‘ . Housewife or female parent can travel to Pasar or anyplace by Tata Nano better than bike or by coach for complete their day-to-day affair more efficaciously. When the adult females get the intelligence, they will go through this intelligence to their friend instantly. This will assist us to advance Tata Nano efficaciously in the local society. At the route show, people besides can acquire the experience with Tata Nano by have the chances to drive the Tata Nano auto before purchase it.

5.0 Channel of Distribution Schemes

5.1 Direct selling channel ( zero-level channel )

We perform the Tata Nano in Malaysia by selling it straight to clients. Customers can cover straight with our traders and do the engagement for Tata Nano by visit our gross revenues office or at any particular event/campaign. Besides that, clients besides can acquire the information or do the engagement via the telephone ( 1-800-88-nano ) and through the Internet ( www.tatanano.com ) . By this manner we can salvage more cost and keep the cheapest purchasing monetary value instead than through retail merchants or resellers.

5.2 Physical Flow

From the diagram, can cognize that Tatanano will direct the waies to the Malaysia after received the order from the gross revenues office. After that, we will piece a auto at the workshop. Finally, direct to the clients straight. From here, we can frequently supply faster bringing to clients because we are closer to the clients.

5.3 Payment Flow

Customers can paying measures by hard currency or do the funding from bank. Customers pay less by this diagram due to non necessitate to pay excess committee to third party such as jobbers or retail merchants. Tata Motor besides can roll up the payment more efficient.

5.4 Information Flow

Customers can acquire the information straight from Tata Motor such as new merchandise, monetary value development and so on. Tata Motor can more understanding client ‘s demands when having clients, response calls and mailings or through internet web log. If clients have any demand or ailment, we can fulfill them instantly by trade with clients straight.

5.5 Promotion Flow

Selling Campaign/Event

Have two ways of publicity flow, straight and indirectly. Directly is we ‘ll form the selling run, event and route show. By this manner, we ‘ll advance Tatanano to aim market by face by face and supply the chances to them seek to drive the Tatanano. Indirect ways are we will make the advertizement through media such as cyberspace, Television, wireless and besides newspaper. By this publicity flow, Tata Motor aims to make trade name consciousness and increase the gross revenues in the Malaysia.

6.0 Financial Plan

This subdivision will offer the overview of Tata Nano related selling activities. It is include, sale prognosis, expense prognosis, interrupt even analysis and how those relate to the market scheme.

6.1 Break even analysis

Break even analysis indicates that 3369 unit or $ 46,168,776 will be required in monthly gross revenues gross to make the interruption even point.

Table: Break Even Analysis

Break even analysis:

Monthly unit interruption even 3369

Monthly gross revenues interrupt even

$ 46,168,776

Monthly unit production

6083

Average per unit gross

$ 13704

Average per unit variable cost

$ 8,954

Average per unit fixed cost

$ 2630.28

Estimated monthly fixed cost

$ 16,000,000

6.2 Gross saless prognosis

Sale was forecasted quarterly footing, with accommodation of seasonal factor. At Malaysia there is 3 chief jubilations each twelvemonth, which Aidil Fitri, Chinese new twelvemonth, and Deepavali, those factors was used as seasonal factor. Since one of our mark markets is fresh alumnus pupil, graduation month besides was used as seasonal factor to set our forecasted gross revenues. The gross revenues was forecasted to increase 10 per centum yearly, gross revenues forecast can be refer to chart below.

6.3 Marketing Expense Forecast

Marketing disbursal prognosis will be used as tool to maintain the selling section on mark and supply indexs when corrections are needed for the proper execution of the selling program. Expenses are tracked in major selling classs of advertizement, selling run, direct selling and other. Marketing are budgeted at about of 8 per centum of entire gross revenues for 3rd one-fourth of 2009, the selling disbursal will be high during those one-fourth to perforate market and advancing our merchandise so costumer will recognize about being of our new merchandise. For the following approaching old ages the selling disbursal will budgeted about 3-4 per centum of entire gross revenues.

Table: Selling Expense Forecast

3rd One-fourth 2009

4th One-fourth 2009

1st One-fourth 2010

2nd One-fourth 2010

Ad

– Newspaper, Billboard and Magazine

2`000,000

1,500,000

1,200,000

1,200,000

– Television advertizement

5,000,000

4,000,000

3,500,000

3,500,000

– Online advertizement

100,000

100,000

75,000

75,000

– Radio advertizement

200,000

200,000

150,000

150,000

Selling run

– Grand Launching event

7,000,000

– Graduation run

2,000,000

– Hari raya aidil fitri run

2,000,000

– Depavaali run

2,000,000

– Yule run

2,000,000

– Chinese new twelvemonth

2,000,000

– Roadshow

3,000,000

Direct selling

– 1-800 toll free

150,000

100,000

100,000

100,000

– Web site

500,000

75,000

75,000

75,000

Other

– Printed stuff ( booklet, streamer, etc )

1,000,000

800,000

600,000

600,000

Entire

19,950,000

10,775,000

7,700,000

8,700,000

Percentage of gross revenues

8.09 %

3.75 %

3.12 %

3.97 %

Table: Milestone of Key Marketing Actvities

Milestone

Start day of the month

End day of the month

Budget

director

Department

Selling program completion

1/02/09

1/03/09

0

Selling director

selling

Web site completion and launching

1/02/09

15/03/09

500,000

Promotion and advertisement director

Promotion and advertisement

News paper, magazine and hoarding advertizement

1/07/09

30/06/10

5,900,000

Promotion and advertisement director

Promotion and advertisement

Television advertizement

1/07/09

30/06/10

16,000,000

Promotion and advertisement director

Promotion and advertisement

Radio advertizement

1/07/09

30/06/10

700,000

Promotion and advertisement director

Promotion and advertisement

Grand launching

06/07/09

7,000,000

Selling director

selling

Graduation run

01/08/9

31/08/09

2,000,000

Gross saless director

Gross saless

Hari raya aidil fitri run

1/09/09

30/09/09

2,000,000

Selling director

selling

Depavaali run

1/10/09

31/10/09

2,000,000

Selling director

Selling

Christmas and new twelvemonth run

10/11/09

10/01/10

2,000,000

Selling director

Selling

Roadshow

01/03/10

01/06/10

3,000,000

Gross saless director

Gross saless

7.0 IMPLEMENTATION AND CONTROL

The aim of tata nano selling program is to function as mention for the organisations. The undermentioned countries will be monitored to estimate public presentation:

Gross: monthly and one-yearExpense: monthly and one-yearCustomer satisfactionGross saless growing by 10 per centum yearly

7.1 Marketing Organization

Selling director will be chiefly responsible for the selling activities. Marketing director will depute duties to publicity and advertisement director to pull off merchandise publicity and advertisement. Gross saless director will responsible for sale public presentation. Marketing manager will oversee all section

7.2 Eventuality program

Troubles and hazards

Slow gross revenues ensuing less than projected hard currency flowUnexpected and inordinate cost addition compared to the forecasted gross revenuesExcessively aggressive and enfeebling actions by rivalsSignificant economic downswings

Worst instance hazard include

Liquidate plus to cover selling disbursals and liabilitiesDetermining the merchandise can non back up itself on ongoing footing

Cite this Business Analysis of Tata Nano

Business Analysis of Tata Nano. (2016, Nov 30). Retrieved from https://graduateway.com/tata-nano/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page