VIJAY GAIKWAD JITESH JAIN BHAGWAN JADHAV

It was established in 1945. It is India's largest car company. Annual revenues of nearly $9 billion. It has 23,000 employees. It has more than 4 million vehicles. It sales, services and spare parts network comprises over 3500 touch points. The company is the worlds fourth largest truck manufacturer, and the worlds second largest bus manufacture

 According to Ratan Naval Tata (Chairman of Tata Group), the need for an innovation like Nano has got to do something for the people of India and transport. Unavailability and poor quality of mass transport is a common problem in India. In a two wheeler, father driving with elder child standing in front and wife behind holding a baby is norm in this country. Thus, this is a relatively an unsafe mode of transporting a family. Thus, with this in mind Tata Nano was created as a safer form of transport

STP Segmentation Targeting Positioning

SEGMENTATION
Process of subdividing a total market into different subsets or groups. Where the marketer may select one or more segments. To be reached with an appropriate marketing mix.

Evaluation of segmentation
Measurable Substantial Accessible Differentiable Actionable

Basis for market segmentation

On the basis of consumers personal characteristics (nonbehavioral correlates)

On the basis of consumer responses (behavioral correlates)

Geographic

Psychographic

Demographic

Socio-economic

Usage based

Benefits

Loyal status

Usage based segmentation

Market segmented into High buyers Medium buyers light buyers

Targeting
Once the firm has segmented the total market ,it should select the target market segment or segments for marketing. Investing in a particular segment should be sensible in terms of companys mission, objectives, skills and resources.

Targeting Strategies

Single segment concentration strategy

Multi segment strategy or differentiated marketing strategy

Undifferentiated marketing strategy

Single segment concentration strategy

The firm selects a single segment or market and fully concentrate its marketing efforts to try and seek maximum advantage.
Single marketing mix

Semi-luxury segment
(Expensive) Small car segment (affordable, less expensive) Luxury car segment (very expensive)

Car maker

Target Markets
The company is targeting lower income group with family First-time buyers of car (fresh graduates) Existing Motorcycle owners

Market Positioning
Positioning of a product or service is creating an image in the consumers mind. Consumers generally buy images rather than actual product. Marketers mostly use advertising as a tool to build up brand or corporate image.

Positioning strategies
Sl. no. 1. Positioning strategies Customer benefits Price and quality Definition Advertising claims

Associate a brand or product with Benefit(s) customer benefits A product is highlighted in terms of service features or performance. Manufacturer charges high price Associating a product or service with a use or application Associating a product or service with a user or class of users. Value for money

2.

3.

Application

Use or application of a product or services. Cine stars or sports heroes using the product

4.

Product user

Positioning strategies
Sl. no. 5 Positioning strategy Product class Definition Associating a product or service in a particular product class Associating cultural symbols with a product or service to differentiate from competitors product Associating with competitors product or service by comparison Advertising claims World class products

Cultural symbols

Royal

Competitors

Compares with competitors brand

"Nano"--the name, its image...any stimuli relating to Nano will generate a common response in the minds of most people...1 Lakh Car.. How is this image going to effect the success of Nano.... Will Nano be rejected as a "cheap car"? Will its image be destroyed by it being excessively used as taxi cabs..?

So how should Tata position Nano in the minds of Indian Customer..?

Nano must be projected as the FIRST CAR to the potential customer. The BEST FIRST CAR an average Indian can have "Nano is the best option for a first car, and you can upgrade to a bigger car when you are in a financially better position..

If Nano is first car, in a few years people will go for a new car.

 Tata's product line will range form Nano to

Jaguar. Nano buyer can be a potential Jaguar customer.