MARKETING

PLAN
TATA NANO in Malaysia

Submitted by:

Hardeep Singh

A00137210
1.0 EXECUTIVE SUMMARY

Tata Nano is the least expensive auto on the planet. It is sold in home nation India around Rs

1-lakh i.e. around USD 2000. It is produced by Tata Motor Limited, the biggest vehicle

organization in India. It's Chairman, Mr Ratan Tata imagines that Tata Nano to end up a

"People's auto" which is moderate by nearly everyone. Tata Nano was initially propelled in

India on first April 2009 and anticipated that would be in Indian market by July 2009. Since

propelling, it has made a colossal buzz all over India. Inside the initial two days of dining, it

has gotten 5500 booking. The figures continue expanding each day since the starting.

What makes Tata Nano so shoddy? Essentially, by making things littler, lighter, get rid of

shallow parts and change the materials wherever conceivable without trading off the security

and ecological consistence. It is said that Tata Nano has preferable millage over Toyota Prius

and same gas discharge as a bike.

Tata Nano will be foreign made to Malaysia by Tata Industries in parts. It will be amassed in

its two plants i.e. in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four

dispersion focuses in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and

Kuantan. All Tata Nano autos will be conveyed through these appropriation focuses as it

were. Request can be made vide these circulation focuses or its site.

There are three sorts of Tata Nano auto accessible i.e. Goodbye Nano, Tata Nano CX and Tata

Nano LX. Notwithstanding, because of hot climate in Malaysia, just Nano CX will be conveyed

to Malaysia and will be sold here. The offering cost of Nano CX in Malaysia is RM 13,704 for

each unit. It is evaluated that gross benefit for the main year would yield xxx, second year xxx

and third year xxx. Evaluated regularly scheduled payment installment is xxx for a long time's
 period. With this value, the objective market is wide which incorporates those with salary RM

2000 every month, understudies, female specialists and bikes' riders.

2.0 SITUATION ANALYSIS

Tata Motors Limited is India's biggest vehicle organization, with incomes of Rs. 35651.48

crores (USD 8.8 billion) in 2007-08. It is the pioneer in business vehicles in every section, and

among the main three in traveler vehicles with winning items in the minimal, average size

auto and utility vehicle fragments. The organization is the world's fourth biggest truck

producer, and the world's second biggest transport maker. In March 2008, Tata Motors

gained Ford's UK based auto brands Jaguar and Land Rover (BBC News, 2008).

As per Ratan Naval Tata (Chairman of Tata Group), the requirement for a development like

Nano must help out the general population of India and transport. Inaccessibility and low

quality of mass transport is a typical issue in India. In a bike, father driving with senior kid

remaining in front and spouse behind holding an infant is standard in this nation.

Consequently, this is a generally a dangerous method of transporting a family. Hence,

because of this Tata Nano was made as a more secure type of transport.

As one of its goals is to wind up an Indian business combination working in numerous nations,

Tata Nano will be presented in Malaysia.

2.1 Market Summary

It is estimated that Malaysia has more than 5 million motorcycles on the road, compared to over

4 million motorcars (ICE, 2001). The majority of motorcycle buyers or users does not own a car
and belong to the lower and middle-income group. A significantly larger percentage of

motorcycle users in Malaysia are male.

2.1.1 Target Markets

The company is targeting lower income group with family, first-time buyers of car (fresh

graduates) and motorcycle owners.

2.1.2 Positioning

Tata Nano will position itself as the world least expensive auto but then does not trade off the

quality, wellbeing and environment. This situating will be accomplished by utilizing Tata Nano's

focused edge: businesses encounter from the parent organization Tata Motor who has been in

vehicles enterprises (business, travellers and utilities) since 1945. Tata engine has great provider

producer association with more than 100 segments.

2.1.2 Demographics

Population, demographics, rural urban, vital statistics from Malaysian auto report.

2.1.4 Geographics

Tata Motors has targeted the urban area in Malaysia. This is going to be Kuala Lumpur and Johor

Bahru. There are 5 million motorcycle riders in Malaysia.

2.1.5 Distribution review

Much the same as in India, Tata Nano will be situated as a reasonable auto even in abroad

markets. 'Simple to-amass packs' will be foreign made from Tata in India. The auto then will be

assembled at pre-characterized areas. The proposed areas are Shah Alam, Selangor and Pasir

Gudang, Johor Bahru. It will be then redistributed to showrooms that will be set up in view of

locale. 30 deals workplaces will be opened all through Malaysia.

2.1.6 Competitor review

The main competitors are Proton, Perodua, Toyota and Honda. The table below indicates

the market shares of the main competitors in the auto industry for the year 2014.

2.2 SWOT Analysis

 The following SWOT analysis investigates the Malaysian political, economic and business

environment. The following finding are adapted from Malaysian Auto Report 2009.

a. Malaysia Political SWOT

SWOT

Strengths

- Strong government support in developing the creative content sector (national

policy, developmental programs, grants, incentives)

- Availability of raw talent that can be trained

- Growing presence in the international market as a regional player for animation and live

action production

- Active overseas promotion of industry players who are capable of servicing the

needs of the global market

- Malaysia is a successful example of a democratic Islamic state. Despite murmurs of

discontent among hardline Muslims in some states, multiracial Malaysia is unlikely to

abandon moderate Islam

Weaknesses

The Malay half of the population holds a constitutionally enshrined special position in society,

amounting to positive discrimination in not only jobs, but also wealth.

Opportunities

- Relatively high level in GDP per capita

- Good penetration of Internet

 - Start of terrestrial digital broadcasting at the end of 2013 and the completion of

shifting predicted by 2015

- Strong connections with Islamic nations, which provide wide opportunity for

market expansion

Threats

- Limited size of domestic population

- Importance of export and import in the content industry as same as other industries

- Brain drain into other countries

- Comfort zone mentality

b. Malaysia Economic SWOTaysia Economic SWOT

Strengths

During the past four decades, Malaysia has transformed itself from a commodities-

dependent backwater into a major world source for electronics andcomputer parts. Malaysia

is the world’s largest producer of rubber, palm oil, pepper and tropical hardwoods, and is also

a net exporter of crude oil. All this provides a solid platform for economic growth

Weaknesses

Malaysia’s relative insulation from global energy price shocks is being eroded. Within the next

5 years Malaysia could become a net importer of oil Malaysia’s economic openness can be as

much of a burden as a benefit, since it confers a high degree of vulnerability to global growth

and capital flows.

 Opportunities

The opportunity for private-sector-led growth will improve as the government continues

divestment of state shareholdings in order to raise funds to narrow the budget deficit.

Threats

Wages are higher in Malaysia than in a number of its competitors, such as China and Vietnam,

which could be a long-term hindrance to economic expansion. To maintain its competitive

edge, Malaysia needs a steady stream of inward investment Export competitiveness could be

eroded if the exchange rate continues to appreciate markedly.

c. Malaysia Business Environment SWOT

3 Strengths

4 Standards of corporate governance in Malaysia have greatly improved since the Asian

financial crisis at the end of the 1990s – more so, in fact, than in many neighbouring countries.

Foreign companies, or at least foreign manufacturing companies, looking to do business in

Malaysia will continue to be welcomed with open arms, with the government offering lavish

tax breaks and concessions.

Weaknesses

State subsidization of prices will remain a peripheral but persistent part of daily economic life

in Malaysia. Doing business in Malaysia will always, to some extent, mean dealing with the

politically well-connected. Big construction projects – and big contracts for foreign

construction firms – are unlikely to be as much of a priority for Malaysia’s government as they

were under the previous administration of former prime minister Mahathir Mohamad.
Opportunities

The opportunity to invest in Malaysian state assets could improve. The government, if it sticks

to its word, will conduct its biggest ever divestment of state shareholdings. Malaysia is eager

to compete globally in banking, and although it currently lacks a domestic champion, with ten

main institutions in the market, bank consolidation is a strong possibility.

Threats

The waterways and shipping lanes that surround Malaysia will continue to pose the threat of

piracy and terrorism Malaysia is at risk, conceivably, of losing out to China in the race for

foreign investment. Penang, once the pillar of Malaysia’s electronics industry, has seen an

exodus of foreign firms, with Seagate, Motorola and Solectron all shifting production

elsewhere in Asia.

d. The following will be key strengths and weakness within the company and describes the

opportunities and threats facing Tata Nano.

Strength

The internationalisation strategy so far has been to keep local managers in new acquisitions,

and to only transplant a couple of senior managers from India into the new market. The

benefit is that Tata has been able to exchange expertise. The company has had a successful

alliance with Italian mass producer Fiat since 2006. This has enhanced the product portfolio

for Tata and Fiat in terms of production and knowledge exchange. For example, the Fiat
Palio Style was launched by Tata in 2007, and the companies have an agreement to build a

pick-up targeted at Central and South America.

Weaknesses

The company's passenger car products are based upon 3rd and 4th generation platforms,

which put Tata Motors Limited at a disadvantage with competing car manufacturers. One

which is often not recognised is that in English the word 'tat' means rubbish.

Opportunities

In the mid-year of 2008 Tata Motor's reported that it had effectively obtained the Land Rover

and Jaguar brands from Ford Motors for UK £2.3 million. Two of the World's extravagance

auto mark has been added to its arrangement of brands, and will without a doubt off the

organization the opportunity to market vehicles in the extravagance sections. Goodbye

Motors Limited gained Daewoo Motor's Commercial vehicle business in 2004 for around USD

$16 million. Nano is the least expensive auto in the World - retailing at minimal more than a

motorbike. The new and developing mechanical countries, for example, India, South Korea

and China will have a hunger for ease traveler and business vehicles. These are the open

doors. Notwithstanding, the organization has set up a proactive Corporate Social

Responsibility (CSR) board of trustees to address potential techniques that will make is

operations more practical. The scope of Super Milo fuel proficient transports is controlled by

super-productive, eco-accommodating motors. The transport has discretionary natural grip

with supporter help and better air admissions that will decrease fuel utilization by up to 10%.
 Threats

Other competing car manufacturers have been in the passenger car business for 40, 50 or

more years. Therefore, Tata Motors Limited has to catch up in terms of quality and lean

production. Sustainability and environmentalism could mean extra costs for this low-cost

producer. This could impact its underpinning competitive advantage. Obviously, as Tata

globalises and buys into other brands this problem could be alleviated. Since the company

has focused upon the commercial and small vehicle segments, it has left itself open to

competition from overseas companies for the emerging Indian luxury segments. For example,

ICICI bank and DaimlerChrysler have invested in a new Pune-based plant which will build 5000

new Mercedes-Benz per annum. Other players developing luxury cars targeted at the Indian

market include Ford, Honda and Toyota. In fact, the entire Indian market has become a target

for other global competitors including Maruti Udyog, General Motors, Ford and others. Rising

prices in the global economy could pose a threat to Tata Motors Limited on a couple of

fronts. The price of steel and aluminium is increasing putting pressure on the costs of

production. Many of Tata's products run on Diesel fuel which is becoming expensive globally

and within its traditional home market.

2.3 Objectives and issue

We have set aggressive yet achievable objectives for the first, second and third year of market

entry.
 First year objective (July 2017 to December 2017)

We want to achieve 25,000 units of sales gaining …. market share % get from market

size

Second year objective (JAN 2018 TO DEC 2018)

We want to achieve 10% increase in quarterly basis (RM 48,600)

Third year objective (JAN 2019 TO DEC 2019)

We want to achieve 10% increase in quarterly basis (RM 53, 460)

2.0 MARKETING MIX STRATEGIES

3.1 Product Strategies

The item methodology which will be adjusted would be the straight item augmentation, which is

showcasing the auto in another remote market with no change. This is on the grounds that there

would be no extra item improvement cost, producing changes, or new advancement.

3.2 Product Review

 There are three variants in the Nano range: Nano, Nano CX and Nano LX

 Only the Nano CX variant would be introduced in the Malaysia Market for the first stage

 Tata Nano LX will introduced in the Malaysia Market during the following year

The car has achieved its low price by minimizing costs on unnecessary “luxuries”, the basic

Nano comes without front and rear fog lights, without a heater or air conditioning, without

anti-lock brakes, only one single windscreen wiper, manually operated windows, manual

steering with no air bags, tiny 12” wheels, plastic body parts joined with adhesive instead of
more conventional metal and welding and a two cylinder 623 cc engine that provides a

massive maximum speed of 65 mph (around 105 km/h).

Among the features of the car are:

a) Stylish and comfortable

The People’s Car, designed with a family in mind, has a roomy passenger compartment

with generous leg space and head room. It can comfortably sit four persons. Four doors

with high seating position make ingress and egress easy.

Yet with a length of 3.1 metres, width of 1.5 metres and a height of 1.6 metres, with

adequate ground clearance, it can effortlessly manoeuvre on busy roads in cities as well

as in rural areas. Its mono-volume design, with wheels at the corners and the power train

at the rear, enables it to uniquely combine both space and manoeuvrability, which will

set a benchmark among small cars.

b) Fuel-efficient engine

The People's Car has a back wheel drive, all aluminum, two-chamber, 523 cc, 33 PS, multi-

point fuel infusion petrol motor. This is the first occasion when that a two-barrel gas

motor is being utilized as a part of an auto with a solitary balancer shaft. The incline plan

technique has minimized weight, which boosts execution per unit of vitality devoured

and conveys high fuel proficiency. Execution is controlled by an uncommonly composed

electronic motor administration framework.

c) Meets all safety requirements

The People's Car has a back wheel drive, all aluminum, two-chamber, 523 cc, 33 PS, multi-

point fuel infusion petrol motor. This is the first occasion when that a two-barrel gas
 motor is being utilized as a part of an auto with a solitary balancer shaft. The incline plan

technique has minimized weight, which boosts execution per unit of vitality devoured

and conveys high fuel proficiency. Execution is controlled by an uncommonly composed

electronic motor administration framework.

d) Environment-friendly

The People's Car has a back wheel drive, all aluminum, two-chamber, 523 cc, 33 PS, multi-

point fuel infusion petrol motor. This is the first occasion when that a two-barrel gas

motor is being utilized as a part of an auto with a solitary balancer shaft. The incline plan

technique has minimized weight, which boosts execution per unit of vitality devoured

and conveys high fuel proficiency. Execution is controlled by an uncommonly composed

electronic motor administration framework.

3.3 Branding

Brands distinguish the source or creator of an item and permit customers – either people or

associations to allocate obligation regarding its execution to a specific maker or merchant.

Marking is investing items and administrations with the force of a brand. It's about making

contrasts between items. For marking procedures to be fruitful and mark esteem to be made,

purchasers must be persuaded there are important contrasts among brands in the item or

administration classification. In Tata Nano's case, the marking methodology utilized is corporate

name joined with individual item names. This present organization's name legitimizes and the

individual name individualizes the new item

3.4 Product Strategy

The Tata Nano CX, including all the features described in the earlier Product Review section, will

be sold with a three-year warranty or 100,000km warranty, whichever comes first. We will

introduce the Tata Nano LX during the following year, after we have established our Tata brand.

The brand and logo will be displayed on the car as well as in all marketing campaigns.

3.5 Pricing Strategies

The Cost price is an estimated USD2, 420 or equivalent to RM8,954, which includes import tax,

duties excise, sales tax, shipment costs and assembly cost. The selling price for the Malaysian

market is RM13,704.00, which is inclusive of standard accessories, but exclude road tax

(RM70.00), registration fees (RM150.00), number plate (RM50.00) and ownership endorsement

fee (RM50.00), sales tax (RM1370.40) which amounted to RM320.00. The On-The-Road price

will be RM15797.40. These prices reflect a strategy of taking a share from established

competitors, such as Perodua’ s model of Kancil and Viva.

3.5.1 Setting the price – selecting price objectives

Tata Nano Malaysia (TNM) has set major three objectives in its effort to position itself in the

Malaysia Automotive market. The objectives are: Survival, maximum current profit and

maximum market share.

a. Survival

Intense competition from Malaysia’s second car manufacturer, Perodua for a share of the

automotive market segment for the below 1,000 cc category will spur TNM to ensure that
 the car price covers variable costs and some fixed costs. In this case, survival is a short

term objective as in the long run, TNM will add value such as added safety features to the

Nano range.

b. Maximum current profit

TNM has set a price that will maximize current profits, cash flow and return on

investment, after taking into consideration the demand and costs involved. As this

category of small foreign cars segment has not been really tested by other manufacturers,

therefore the demand is rather difficult to estimate but TNM is confident of a good

response towards its entry into the Malaysian market.

c. Maximum Market Share

For the Malaysian market, TNM will implement the market-penetration pricing, which is to

set a low price for a new car in order to attract a large number of buyers and a large market

share. This will be done by achieving high sales volume, which will result in falling costs,

allowing the company to cut its price even further. We are positive enough that the Malaysia

car market is highly price sensitive, as a low price produces more market growth. TNM is

also confident that production and distribution costs will fall as sales volume increases and

the low price of Nano cars will help to keep out competition and maintain its low-price

position. The low-price entry will provide Malaysians consumers with a viable alternative to

Perodua –Malaysia second National car. Further liberalization is expected as Malaysia

implements the ASEAN Free Trade Area agreement, which commits the Malaysia

Government to scrap foreign car taxes.

4.0 PROMOTION STRATEGIES

4.1 Objectives of Promotion Strategies

Before determine the promotion strategies, we need to very clear about what are the

objectives we need to achieve. We know as above, our missions are to promote Tata nano in

Malaysia and increase the sales quarterly. Tata Nano is very new for Malaysian, they feel fresh

with this new brand and concept of this car. Tata Nano will get into Malaysia market in July 2016.

So first of the objective for promotion strategies are aims to create brand awareness and

concept/knowledge of this new car – Tata Nano. This is the cheapest car in the world and

burst into the worldwide market in the short time. But still is the new brand for the

Malaysians, so we do the advertisement and organize the event or campaign in sufficient detail

to establish the good brand attitudes. Brand awareness is important to provide a

foundation for brand equity.

After that, our second objective is knowledge and persuasive. We aim to create liking,

preference, conviction, and purchase of a Tata Nano car. We can do the comparison with other

cars which are higher purchase price and this price is not every people will be affordable

especially lower income families and students. Beside that we will convince current purchasers

that we will give the potential customer to enjoying the good experience with Tata Nano by give

try to drive the Tata Nano before buying the car. And also will provide them warranty to the Tata

Nano.
We will organize all the promotion strategies with lower cost to maintain the lower purchase

price for the Tatanano in Malaysia.

4.2 Promotion Tag line

‘Have Fun, Pay Less, get more with Tata Nano’

Why we establish this tag line? Because this is make all the Malaysian too easy to remembered

Tata Nano and feel happy all the ways with Tata Nano. Tata Nano is safety and you can travel

everywhere by Tata Nano with your family or friends with fun, but you just need to pay all of this

at lower price –Pay Less & Get More.

Beside that we can enjoying special fun with Tatanano, our earth also will feel happy with

Tatanano because Tatanano also is the environment friendly car.

4.3 Advertising Program

We aim to inform Malaysians this is the cheapest car in the world and persuade

Malaysians to buy Tata Nano due to this car is safety, useful, all in good quality and also

environment friendly by developing an advertising program.

4.3.1 Online Advertisement

Initial step we begin before dining Tata Nano, we do the online notice. Tata Nano made a Web

website – www.tatanano.com – on March 2016 to better speak with the clients. In the Web

website, we posted the photograph classifications and recordings to give clients the data and
extraordinary elements of Tata Nano and bring them inside the organization. Notwithstanding

photographs and recordings, the site connections to late news about Tata Nano and space for

open input.

Other than that, Blogs have turned into an imperative outlet for informal which are routinely

redesigned online journals. Online journals are uniting individuals with normal interests. They

fluctuate wide and can impact an inconceivable group of onlookers because of numerous web

clients have perused Blogs. We can build up the blog arrange and painstakingly observing to

discover what's on individuals' psyches particularly the potential clients. This is a least expensive

and great approach to develop mark mindfulness.

4.3.2 Television Advertisement

Television advertisement is very expensive but this is the most powerful to perform the

Tata Nano to the public by demonstrating Tata Nano attributes and persuasively explaining their

corresponding consumer benefits. By lower advertising budget, we cannot do the TV

advertisement in whole day, so we just choose the prime time (7pm – 11pm) to place the

advertisement. By properly designed and executed TV advertisement can improve brand equity

and affect sales and profits.

4.3.3 Radio Advertisement

Most of the Malaysians listen to the radio daily. Now a day have many facilities such as

MP3, hand phone and so on, is convenience for the people to listen the radio anytime at

anywhere, this is a cheap and pervasive medium for us to create the brand awareness by
repeatedly listen the advertisement and the brand name. Advantages of the radio advertisement

are flexibility, quick response and also more effective media for reaching teens.

4.3.4 Newspaper Advertisement

Beside that the radio, most of the Malaysians also will saw a newspaper every day. So this

is good market coverage. From here, Tata Nano can get the broad acceptance and good

reputation from Malaysians. Newspaper advertising is inexpensive.

4.4 Marketing Campaign

This Marketing campaign is based on every four months:

4.4.1 Marketing Campaign for July 2016 to October 2016

Tata Nano will lunch at Malaysia on July 2016. Propelling system is vital for situating which is the

demonstration of outlining Tata Nano and picture to involve Malaysia in the minds of the

objective market. Propelling system likewise is one of the advancement techniques to

manufacture mindfulness, through propelling at open focus Tata Motor will acquaint the Tata

Nano with market.

In July and August, we concentrate on promoting effort which will happen at all the IPTA and IPTS

which have composed the meeting, by giving item show and flag; and the people groups can have

the involvement with Tata Nano by give the chances to drive Tata Nano around the grounds.

Subject for this crusade is 'Great future with Tata Nano'. Explanation behind this advertising

effort is one of our objectives are understudies, for example, crisp graduate who simply land the
new position furthermore the universal understudies. New graduate need the transportation in

their working life however they can't bear to purchase the excessively costly auto; global

understudy simply requires the auto which is economy and utilizing it as a part of brief period

around 2-3years for their understudy life in Malaysia. This is least expensive cost by occasion or

battle in the grounds.

In September and October, Malaysians will praise two major celebrations together, there are Hari

Raya Puasa Aidifitri and Deepavali. So we can concentrate on lower pay amass with family

particularly those are originated from Malay family or Indian family. Utilize the mail, phone, fax,

email to discuss specifically with them. Base on recorded, a greater amount of the Malay or Indian

will purchase the auto before celebration. 'Raya with Tata Nano' can be the subject for our

crusade at this period, and advance them Tata Nano is least expensive and wellbeing.

4.4.2 Marketing Campaign for November 2016 to February 2017

In November and December, Malaysia have the Mega Sales due to Merry Christmas and

New Year in the end of the year at whole Malaysia so that have many people will go to shopping.

We can organize the event at shopping centers in Malaysia such as KLCC, Midvalley, Berjaya

Times Square, and Sungai Wang by providing product display and banner.

On January and February, most of the employees in Malaysia will get the bonus in this period

so the purchasing power will increase. Beside that Chinese New Year is at February. Send the

brochures to the small and medium company or office and do the introduction or briefing to

them. Follow by mail, telephone, fax or e-mail to developing effective communication.

4.4.3 Marketing Campaign for March 2017 to June 2017

We will do the street appear at each state (entire Malaysia). We can have the street appear at

the focus market, for example, all market at all the state. Have many individuals will go to

advertise early morning to purchase the vegetable, take the breakfast or purchase the essential

things. A large portion of them are ladies or housewife who might be originated from the lower

or medium pay family. Some of them go to Pasar by bike or by transport. There are our objective

markets. We can elevate Tata Nano to them, for example, Tata Nano is the least expensive auto

on the planet, Get the Tata Nano to be second auto for their relative particularly for their

youngsters or senior parent, 'Simple existence with Tata Nano'. Housewife or mother can go to

Pasar or anyplace by Tata Nano superior to bike or by transport for finish their day by day matter

all the more viably. At the point when the ladies get the news, they will pass this news to their

companion quickly. This will help us to advance Tata Nano adequately in the nearby society. At

the street appear, individuals likewise can get the involvement with Tata Nano by have the

chances to drive the Tata Nano auto before buy it.

5.0 Channel of Distribution Strategies

5.1 Direct marketing channel (zero-level channel)

Manufacturer Customers

We perform the Tata Nano in Malaysia by selling it directly to customers. Customers can

deal directly with our dealers and make the booking for Tata Nano by visit our sales office or at

any special event/campaign. Besides that, customers also can get the information or make the
 booking via the telephone (1-800-88-nano) and through the Internet ( www.tatanano.com ). By

this way we can save more cost and maintain the cheapest purchasing price rather than through

retailers or resellers.

5.2 Physical Flow

Transporters, Assembly Workshop

Tata Motor at India Customers
Warehouses At Malaysia

From the diagram, can know that Tatanano will send the paths to the Malaysia after

received the order from the sales office. After that, we will assemble a car at the workshop.

Finally, send to the customers directly. From here, we can often provide faster delivery to

customers because we are closer to the customers.

5.3 Payment Flow

Banks Sale Office Banks

Tata Motor at India Customers
At Malaysia

Customers can be paying bills by cash or do the financing from bank. Customers pay less by this

diagram due to not need to pay extra commission to third party such as wholesalers or retailers.

Tata Motor also can collect the payment more efficient.

5.4 Information Flow

Tata Motor at India Sale Office

Customers
At Malaysia
 Customers can get the information directly from Tata Motor such as new product, price

development and so on. Tata Motor can more understanding customer's needs when receiving

customers, response calls and mailings or through internet blog. If customers have any need or

complaint, we can satisfy them immediately by deal with customers directly.

5.5 Promotion Flow

Marketing Campaign/Event

Tata Motor at India Sale Office Media Customers

At Malaysia

Have two methods for advancement stream, specifically and in a roundabout way.

Specifically, is we'll sorting out the promoting effort, occasion and street appear. By along these

lines, we'll elevate Tata Nano to target advertise by face by face and give the chances to them

attempt to drive the Tata Nano. Backhanded ways are we will do the notice through media, for

example, web, TV, radio furthermore daily paper. By this advancement stream, Tata Motor

intends to make mark mindfulness and increment the deals in the Malaysia.

6.0 Financial Plan

This section will offer the overview of Tata Nano related marketing activities. It is including, sale

forecast, expense forecast, break even analysis and how those relate to the market strategy.
6.1 Break even analysis

Break even analysis indicates that 3369 unit or $ 46,168,776 will be required in monthly

sales revenue to reach the breakeven point.

100000
90000
80000
70000
60000 fixed cost
50000
total cost
40000
total revenue
30000
20000
10000
0
1000 2000 3000 4000 5000 6000 7000

Table: Break Even Analysis

Break even analysis:

Monthly unit break even 3369

Monthly sales break even $46,168,77

Monthly unit production 6083

Average per unit revenue $13704

Average per unit variable cost $8,954

Average per unit fixed cost $2630.28

 Estimated monthly fixed cost $16,000,00

6.2 Sales forecast

Deal was estimated quarterly premise, with modification of occasional component. At

Malaysia there is 3 fundamental festivals every year, which Aidil Fitri, Chinese new year, and

Deepavali, those variables were utilized as occasional element. Since one of our objective

markets is crisp graduate understudy, graduation month likewise was utilized as occasional

element to modify our gauge deals. The deals were anticipated to build 10 percent every year;

deals gauge can allude to diagram underneath.

Figure: Sales Forecast

30000
Sales Forecast Quarterly (unit)
25000

20000

15000
23100 25410 Sales (unit)
10000 21000 19800 19800 21780
18000 18000 16000 16600
5000

0
Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019Q3 2019Q4 2019

6.3 Marketing Expense Forecast

Advertising cost figure will be utilized as instrument to keep the promoting office on

target and give pointers when adjustments are required for the best possible execution of the

showcasing arrangement. Costs are followed in significant showcasing classifications of

promotion, advertising effort, coordinate advertising and other. Advertising are planned at

around of 8 percent of aggregate deals for third quarter of 2017, the showcasing cost will be high

amid those quarter to enter showcase and advancing our item so costumer will acknowledge

about presence of our new item. For the following coming years, the advertising cost will have

planned around 3-4 percent of aggregate deals.

Table: Marketing Expense Forecast

3rd Quarter 4th Quarter 1st Quarter 2nd Quarter

2017 2017 2018 2018

Advertisement

- Newspaper, Billboard 2`000,000 1,500,000 1,200,000 1,200,000

and Magazine

- TV advertisement 5,000,000 4,000,000 3,500,000 3,500,000

- Online advertisement 100,000 100,000 75,000 75,000

- Radio advertisement 200,000 200,000 150,000 150,000

Marketing campaign

- Grand Launching event 7,000,000

- Graduation campaign 2,000,000

- Hari raya aidil fitri 2,000,000

campaign

- Depavaali campaign 2,000,000

 - Christmas campaign 2,000,000

- Chinese new year 2,000,000

- Roadshow 3,000,000

Direct marketing

- 1-800 toll free 150,000 100,000 100,000 100,000

- Web site 500,000 75,000 75,000 75,000

Other

- Printed material 1,000,000 800,000 600,000 600,000

(brochure, banner, etc)

Total 19,950,000 10,775,000 7,700,000 8,700,000

Percent of sales 8.09% 3.75 % 3.12% 3.97%

Table: Milestone of Key Marketing Activities

Milestone Start date End date Budget manager Department

Marketing plan 1/02/2017 1/03/2017 0 Marketing marketing

completion manager

Web site completion and 1/02/2017 15/03/2017 500,000 Promotion Promotion

launching and and

advertising
 advertising

manager

Newspaper, magazine 1/07/2017 30/06/2018 5,900,000 Promotion Promotion

and billboard and and

advertisement advertising advertising

manager

TV advertisement 1/07/2017 30/06/2018 16,000,000 Promotion Promotion

and and

advertising advertising

manager

Radio advertisement 1/07/2017 30/06/2018 700,000 Promotion Promotion

and and

advertising advertising

manager

Grand launching 06/07/2017 - 7,000,000 Marketing marketing

manager

Graduation campaign 01/08/2017 31/08/2017 2,000,000 Sales manager Sales

Harirayaaidilfitri 1/09/2017 30/09/2017 2,000,000 Marketing marketing

campaign manager

Depavaali campaign 1/10/2017 31/10/02017 2,000,000 Marketing Marketing

manager
 Christmas and new year 10/11/2017 10/01/2018 2,000,000 Marketing Marketing

campaign manager

Roadshow 01/03/2018 01/06/2018 3,000,000 Sales manager Sales

7.0 IMPLEMENTATION AND CONTROL

The objective of tata nano marketing plan is to serve as reference for the organizations. The

following areas will be monitored to gauge performance:

Revenue: monthly and annual

Expense: monthly and annual

Customer satisfaction

Sales growth by 10 percent annually

7.1 Marketing Organization

Promoting director will be essentially in charge of the showcasing exercises. Showcasing

supervisor will designate duties to advancement and publicizing director to oversee item

advancement and promoting. Deals director will in charge of offer execution. Showcasing

executive will administer all office

Marketing
director

Promotion and
Marketing
Sales manager advertising
manager
manager
7.2 Contingency plan

Difficulties and risks

Slow sales resulting less than projected cash flow

Unexpected and excessive cost increase compared to the forecasted sales

Overly aggressive and debilitating actions by competitors

Significant economic downturns

Worst case risk includes

Liquidate asset to cover marketing expenses and liabilities

Determining the product cannot support itself on ongoing basis

 References

http://choubeyrajj.blogspot.ca/2013/07/tata-nano-marketing-strategies.html

https://www.linkedin.com/pulse/analysis-marketing-strategy-tata-nano-kumar-utkarsh

http://www.motortrader.com.my/news/category/market-reports/

http://paultan.org/2016/01/21/2015-malaysia-vehicle-sales-market-review-by-brand/

http://www.heritage.org/index/country/malaysia