Tata Motors Zest & Bolt: Market Positioning Analysis
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AI Summary
This assignment requires an in-depth analysis of the marketing positioning strategies employed by Tata Motors for their Zest sedan and Bolt hatchback. Students must examine the target audience for each vehicle, analyze the competitive landscape within the relevant market segments, and evaluate the effectiveness of promotional campaigns used to launch and position these models. The analysis should draw upon various sources such as marketing reports, news articles, and company press releases.
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Running head: MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Marketing research of Tata Motors Zest Sedan
Name of the Student
Name of the University
Author note
Marketing research of Tata Motors Zest Sedan
Name of the Student
Name of the University
Author note
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1
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Executive summary
The aim of the paper is to analyze the alternative targeting market and population for Tata
Motors New Zest Sedan launch and the sampling approach for the survey. The alternative
target market for the company is the high-level income customers and the population has
been divided into three groups such as the high-income level customers, car lovers and the
people having fewer parking spaces. For the survey on appropriate market for new car a
sampling approach is used to reach an appropriate result.
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Executive summary
The aim of the paper is to analyze the alternative targeting market and population for Tata
Motors New Zest Sedan launch and the sampling approach for the survey. The alternative
target market for the company is the high-level income customers and the population has
been divided into three groups such as the high-income level customers, car lovers and the
people having fewer parking spaces. For the survey on appropriate market for new car a
sampling approach is used to reach an appropriate result.
2
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Table of Contents
Introduction................................................................................................................................3
Alternative targeting market for Zest Sedan..............................................................................3
Alternative ways of defining population....................................................................................5
Sampling Frame.........................................................................................................................6
Sampling Approach....................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Table of Contents
Introduction................................................................................................................................3
Alternative targeting market for Zest Sedan..............................................................................3
Alternative ways of defining population....................................................................................5
Sampling Frame.........................................................................................................................6
Sampling Approach....................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
3
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Introduction
Tata Motors has been known for launching huge range of cars from premium rage
cars to low range cars. It had come up with few luxury range cars such as the Jaguar, Land
Rover that targeted the premium customers. However, the company has experienced a loss in
its market share in the past few years to the other motor companies like Hyundai Motor and
Maruti Suzuki. This made the company to launch a car that can suit the needs to middle class
customers as well. Thus, the company came up with a new car in the name of Zest Sedan that
it wanted to target the middle-income customers (Businesstoday 2017). The paper discusses
about the alterative target market for Tata Motors and defines an alternative population for
the company. Further, it focuses on the sampling frame and sampling approach for the new
target market for Tata Motors.
Alternative targeting market for Zest Sedan
Targeting is one of the important activities of any firm before launching a new
product. Before launching a product, the company first plans the target market that it wants
for its product and accordingly strategizes its marketing plan and prices. The target market
comprises of the customers that the company wants to sell its product. Thus targeting the
customers for the product is essential before developing the marketing plan for the new
product. Tata Motors has also planned to launch a new product for which it has targeted the
middle-income customers as the targeted market. This is because the car is introduced as a
compact and small car that is cheaper ad fuel-efficient. According to the company, this range
of car will be of great demand as most of the population consists of middle class and the new
car will fulfill their need and budget (Wirtz and Lovelock 2017). However, ever though the
car is aimed to serve the middle-income customers the alternative target market can be high-
end premium customers to some extent. This is because there are few premium customers
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Introduction
Tata Motors has been known for launching huge range of cars from premium rage
cars to low range cars. It had come up with few luxury range cars such as the Jaguar, Land
Rover that targeted the premium customers. However, the company has experienced a loss in
its market share in the past few years to the other motor companies like Hyundai Motor and
Maruti Suzuki. This made the company to launch a car that can suit the needs to middle class
customers as well. Thus, the company came up with a new car in the name of Zest Sedan that
it wanted to target the middle-income customers (Businesstoday 2017). The paper discusses
about the alterative target market for Tata Motors and defines an alternative population for
the company. Further, it focuses on the sampling frame and sampling approach for the new
target market for Tata Motors.
Alternative targeting market for Zest Sedan
Targeting is one of the important activities of any firm before launching a new
product. Before launching a product, the company first plans the target market that it wants
for its product and accordingly strategizes its marketing plan and prices. The target market
comprises of the customers that the company wants to sell its product. Thus targeting the
customers for the product is essential before developing the marketing plan for the new
product. Tata Motors has also planned to launch a new product for which it has targeted the
middle-income customers as the targeted market. This is because the car is introduced as a
compact and small car that is cheaper ad fuel-efficient. According to the company, this range
of car will be of great demand as most of the population consists of middle class and the new
car will fulfill their need and budget (Wirtz and Lovelock 2017). However, ever though the
car is aimed to serve the middle-income customers the alternative target market can be high-
end premium customers to some extent. This is because there are few premium customers
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MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
that need small and compact cars for their home or other activities. Moreover, the tax and
other price addition increase the price range above the desired amount for the middle-income
customers. further most of the customers holds sedans as luxury cars and thus it can be
accepted by the premium customers. This is the alternative targeting market for the company.
The interior of the car is also said to have a premium feel suited to high-end customers.
Alternative target market is known as one of the cheapest way the company can target a
specific market or neighborhood (The Economic Times 2017). The company according to the
age group, community, literacy rate and others can target various types of alternative market.
The alternative target market for Tata Motors for its new Zest Sedan range is the high-income
customers as they also buy low range cars for regular uses. There are also various advantages
attached to the broad target market with alternative targeting strategy such as more number of
target customers, high revenue, more safety and better media approach. By alternative
targeting, the company will target larger market such as both the low and high range
customers (Barton 2015). Increase in customer size automatically increases the revenue of the
firm and the company is safe from losing the market share from other competitors. This is
because their number of sales volume will increase for the company with these alternative
target markets. Further Tata Motors will gain a lot in future as well with the alternative target
market while launching other ranges of cars. This is because most of the customers will know
the brand and the company will also be able to know the mindset of the customers while
setting the price and promotional strategy of the product. Tata Motors too will gain a lot
from the alternative strategy suggested for its new range of Zest sedan (Gengler and Mulvey
2017).
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
that need small and compact cars for their home or other activities. Moreover, the tax and
other price addition increase the price range above the desired amount for the middle-income
customers. further most of the customers holds sedans as luxury cars and thus it can be
accepted by the premium customers. This is the alternative targeting market for the company.
The interior of the car is also said to have a premium feel suited to high-end customers.
Alternative target market is known as one of the cheapest way the company can target a
specific market or neighborhood (The Economic Times 2017). The company according to the
age group, community, literacy rate and others can target various types of alternative market.
The alternative target market for Tata Motors for its new Zest Sedan range is the high-income
customers as they also buy low range cars for regular uses. There are also various advantages
attached to the broad target market with alternative targeting strategy such as more number of
target customers, high revenue, more safety and better media approach. By alternative
targeting, the company will target larger market such as both the low and high range
customers (Barton 2015). Increase in customer size automatically increases the revenue of the
firm and the company is safe from losing the market share from other competitors. This is
because their number of sales volume will increase for the company with these alternative
target markets. Further Tata Motors will gain a lot in future as well with the alternative target
market while launching other ranges of cars. This is because most of the customers will know
the brand and the company will also be able to know the mindset of the customers while
setting the price and promotional strategy of the product. Tata Motors too will gain a lot
from the alternative strategy suggested for its new range of Zest sedan (Gengler and Mulvey
2017).
5
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Alternative ways of defining population
Population in research is considered the large number of people in a region that the
company targets for its products. The population is he customers that buy the product that the
company is offering. Population in market research is considered as customers. The
population comes under wide umbrella compared to the sample population. This is because a
population is divided under a huge range that the company will sell it product. The population
type is used by a brand to survey the customer before launching its products in the market
(Mook et al. 2016). However, it is difficult to survey the whole population at one go because
of its huge size. For this reasons companies first divide the whole population into various
alternatives and from those alternatives, it further selects some sample for the survey. Tata
Motors too needs to divide its market population into wide groups to survey on it. This is
because survey helps to give the company a valuable insight about the about their future line
of growth. Further, it will also help them to know the growth and acceptability rate they will
achieve for their new product launch. The alternative ways by which Tata Motors can divide
the population among various umbrellas for its new Zest Sedan are the card lovers, the high
and middle-income customers and customer having less space for car parking. These are the
three alternative ways the brand can divide their population of customers that will help them
survey the right customers and gain back its market share (Levy and Lemeshow 2013). The
first way of defining population for Tata Motors Zest Sedan launch is by car lovers. They are
the first people that any car company targets for any of its products. This is because these
customers have a passion for cars and love to buy new range of cars launched in the market.
Thus, Tata Motors should aim these customers first to capture the market share. The next
division of population will be the middle and high-income customers (Goetz et al. 2016).
They are the revenue givers for the company and depending on these customers; the company
decides the price of its new car launch. Lastly, the car can also be offered to the customers
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Alternative ways of defining population
Population in research is considered the large number of people in a region that the
company targets for its products. The population is he customers that buy the product that the
company is offering. Population in market research is considered as customers. The
population comes under wide umbrella compared to the sample population. This is because a
population is divided under a huge range that the company will sell it product. The population
type is used by a brand to survey the customer before launching its products in the market
(Mook et al. 2016). However, it is difficult to survey the whole population at one go because
of its huge size. For this reasons companies first divide the whole population into various
alternatives and from those alternatives, it further selects some sample for the survey. Tata
Motors too needs to divide its market population into wide groups to survey on it. This is
because survey helps to give the company a valuable insight about the about their future line
of growth. Further, it will also help them to know the growth and acceptability rate they will
achieve for their new product launch. The alternative ways by which Tata Motors can divide
the population among various umbrellas for its new Zest Sedan are the card lovers, the high
and middle-income customers and customer having less space for car parking. These are the
three alternative ways the brand can divide their population of customers that will help them
survey the right customers and gain back its market share (Levy and Lemeshow 2013). The
first way of defining population for Tata Motors Zest Sedan launch is by car lovers. They are
the first people that any car company targets for any of its products. This is because these
customers have a passion for cars and love to buy new range of cars launched in the market.
Thus, Tata Motors should aim these customers first to capture the market share. The next
division of population will be the middle and high-income customers (Goetz et al. 2016).
They are the revenue givers for the company and depending on these customers; the company
decides the price of its new car launch. Lastly, the car can also be offered to the customers
6
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
having less space for parking. Focusing on this part of population the company has made the
car compact and suitable for these customers (Tata Motors Limited 2017).
Sampling Frame
Sample frame is the material from which the sample is drawn for the research. It
consists of those people from the targeted population with the help of which the survey can
be done. It is through a good sampling method the company can achieve its right target
market. It is the prerequisite required by the company to carry out effective research on the
topic they want. Population is considered to be the huge space whereas the sample is the
compact version of the population that is easily studied for a conclusion. The sample frame
formed for the research purpose of Tata Motors new car launch focuses on various traits as
the population has been defined into three groups (Chao et al. 2014). Thus from the three
division of population each sample is selected for carrying out the survey for each of them.
As in this research it is about a new launch that is being brought about by Tata Motors
through a new compact car, it is necessary for the company to know the traits of the three
division of population. As it is said that the car is an entry-level car therefore the price of the
car is kept at the medium range. However, the incline of the price is towards the high-end
customers because of the style, the features that the brand is offering are of high range. Thus,
even though the targeted market are the middle income customers looking for low range cars
yet the design and class of the car in a compact way make it acceptable by rich customers as
well. This makes Sedan to fulfill the desire for high-income customers as well. Further, the
price of the car also increases due to addition of taxes and other additions, which makes the
price of the car higher for the average income customers. On the other hand, it is seen that the
entry level Zest Sedan is a fuel-efficient low maintenance car and is targeted to small families
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
having less space for parking. Focusing on this part of population the company has made the
car compact and suitable for these customers (Tata Motors Limited 2017).
Sampling Frame
Sample frame is the material from which the sample is drawn for the research. It
consists of those people from the targeted population with the help of which the survey can
be done. It is through a good sampling method the company can achieve its right target
market. It is the prerequisite required by the company to carry out effective research on the
topic they want. Population is considered to be the huge space whereas the sample is the
compact version of the population that is easily studied for a conclusion. The sample frame
formed for the research purpose of Tata Motors new car launch focuses on various traits as
the population has been defined into three groups (Chao et al. 2014). Thus from the three
division of population each sample is selected for carrying out the survey for each of them.
As in this research it is about a new launch that is being brought about by Tata Motors
through a new compact car, it is necessary for the company to know the traits of the three
division of population. As it is said that the car is an entry-level car therefore the price of the
car is kept at the medium range. However, the incline of the price is towards the high-end
customers because of the style, the features that the brand is offering are of high range. Thus,
even though the targeted market are the middle income customers looking for low range cars
yet the design and class of the car in a compact way make it acceptable by rich customers as
well. This makes Sedan to fulfill the desire for high-income customers as well. Further, the
price of the car also increases due to addition of taxes and other additions, which makes the
price of the car higher for the average income customers. On the other hand, it is seen that the
entry level Zest Sedan is a fuel-efficient low maintenance car and is targeted to small families
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MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
as well. Thus, the company will find its sample for doing survey for future growth under
these frames.
Sampling Approach
Sampling is one of the most important activities for a firm while conducting a
research on future growth. It is by forming a small group of sample the company will be able
to interview the potential buyers of the new car. This is because surveying a large population
is impossible as it time consuming as well as confusing. Thus, Tata Motors needs to divide
the population in various ways as stated above and from each of the population segment the
company needs to find a sample that will best define their purpose. Thus sampling also helps
is researching various segmented portion of a market that is selected by the company.
Sampling is essential, as it will initiate the research to be taken by the company and help
them to reach a conclusion about the market segment they want to target the most. Further,
sampling guide, this consists of all data that is required for further survey. There are some
basics for further survey with the help of a sample such as sample should be appropriate to
match the required research, sample should be valid and up-to-date, sample should be
accurately selected from the population and research should be done accurately. Further, it
should be focused that the sample should not be a biased one and it should cover all required
points of the chosen population (Wood 2014). The researcher also should have a clear idea
about the research it wants to pursue with the sample and should reach an unbiased result
with the survey. Another feature of a sample is that it should be dependable sample and
should help in explaining the survey in a better way. In this research the sample that Tata
Motor choose from the three division of population should be used by the company
accurately and end with a helpful unbiased result. The result of the research thus depends
upon the sample approach and on the size of the sample being used for the result depending
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
as well. Thus, the company will find its sample for doing survey for future growth under
these frames.
Sampling Approach
Sampling is one of the most important activities for a firm while conducting a
research on future growth. It is by forming a small group of sample the company will be able
to interview the potential buyers of the new car. This is because surveying a large population
is impossible as it time consuming as well as confusing. Thus, Tata Motors needs to divide
the population in various ways as stated above and from each of the population segment the
company needs to find a sample that will best define their purpose. Thus sampling also helps
is researching various segmented portion of a market that is selected by the company.
Sampling is essential, as it will initiate the research to be taken by the company and help
them to reach a conclusion about the market segment they want to target the most. Further,
sampling guide, this consists of all data that is required for further survey. There are some
basics for further survey with the help of a sample such as sample should be appropriate to
match the required research, sample should be valid and up-to-date, sample should be
accurately selected from the population and research should be done accurately. Further, it
should be focused that the sample should not be a biased one and it should cover all required
points of the chosen population (Wood 2014). The researcher also should have a clear idea
about the research it wants to pursue with the sample and should reach an unbiased result
with the survey. Another feature of a sample is that it should be dependable sample and
should help in explaining the survey in a better way. In this research the sample that Tata
Motor choose from the three division of population should be used by the company
accurately and end with a helpful unbiased result. The result of the research thus depends
upon the sample approach and on the size of the sample being used for the result depending
8
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
on the population used. This is because any research that depends on a niche item gives a
lower inference than others do. For example, if the company is researching eighty people
from all the types of population then there are great chances that around 20 percent of the
sample will not respond back. Thus, the researcher for analysis and conclusion of a result will
use the rest 80 percent. Sampling is thus stated to be an essential part of the research if a large
number of populations are being used for the research. Tata Motors can also make their
launch a successful one if they carry out extensive research on alternative target market and
population. This will also help them reduce the inaccuracy that the company was going to
make by targeting only a single group of market (Wells et al. 2015).
Conclusion
From the above discussion and analysis, it can be concluded that Tata Motors Zest
Sedan has a lot of alternative target market and population in the market. The suggested
alternative targeting for the company is the above average income level customers as the car
has a class in its style and feature that is loved by the premium customers as well. Further, the
population can be divided into three groups such as car lovers, average and above average
customers and those having small parking space. For the research purpose and adequate result
sampling method is chosen with a sampling approach that will make it easier for the company
to research a huge population. This is because it has been stated that sampling is the best way
a research can be conducted that includes huge population to be surveyed.
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
on the population used. This is because any research that depends on a niche item gives a
lower inference than others do. For example, if the company is researching eighty people
from all the types of population then there are great chances that around 20 percent of the
sample will not respond back. Thus, the researcher for analysis and conclusion of a result will
use the rest 80 percent. Sampling is thus stated to be an essential part of the research if a large
number of populations are being used for the research. Tata Motors can also make their
launch a successful one if they carry out extensive research on alternative target market and
population. This will also help them reduce the inaccuracy that the company was going to
make by targeting only a single group of market (Wells et al. 2015).
Conclusion
From the above discussion and analysis, it can be concluded that Tata Motors Zest
Sedan has a lot of alternative target market and population in the market. The suggested
alternative targeting for the company is the above average income level customers as the car
has a class in its style and feature that is loved by the premium customers as well. Further, the
population can be divided into three groups such as car lovers, average and above average
customers and those having small parking space. For the research purpose and adequate result
sampling method is chosen with a sampling approach that will make it easier for the company
to research a huge population. This is because it has been stated that sampling is the best way
a research can be conducted that includes huge population to be surveyed.
9
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
References
Barton, L., 2015. Active Positioning: The Importance of Relevancy. Journal of Marketing
Perspectives, 1, p.48.
Businesstoday.in. 2017. Tata Motors unveils sedan Zest, hatchback Bolt- Business News.
[online] Available at: http://www.businesstoday.in/sectors/auto/tata-motors-new-sedan-zest-
hatchback-bolt-unveiled-auto-expo/story/202919.html [Accessed 26 Sep. 2017].
Chao, A., Gotelli, N.J., Hsieh, T.C., Sander, E.L., Ma, K.H., Colwell, R.K. and Ellison, A.M.,
2014. Rarefaction and extrapolation with Hill numbers: a framework for sampling and
estimation in species diversity studies. Ecological Monographs, 84(1), pp.45-67.
Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation via
willingness-to-pay and means-end brand differentiators. Journal of Brand
Management, 24(3), pp.230-249.
Goetz, T., Sticca, F., Pekrun, R., Murayama, K. and Elliot, A.J., 2016. Intraindividual
relations between achievement goals and discrete achievement emotions: an experience
sampling approach. Learning and Instruction, 41, pp.115-125.
Levy, P.S. and Lemeshow, S., 2013. Sampling of populations: methods and applications.
John Wiley & Sons.
Mook, P., Kanagarajah, S., Maguire, H., Adak, G.K., Dabrera, G., Waldram, A., Freeman, R.,
Charlett, A. and Oliver, I., 2016. Selection of population controls for a Salmonella case-
control study in the UK using a market research panel and web-survey provides time and
resource savings. Epidemiology & Infection, 144(6), pp.1220-1230.
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
References
Barton, L., 2015. Active Positioning: The Importance of Relevancy. Journal of Marketing
Perspectives, 1, p.48.
Businesstoday.in. 2017. Tata Motors unveils sedan Zest, hatchback Bolt- Business News.
[online] Available at: http://www.businesstoday.in/sectors/auto/tata-motors-new-sedan-zest-
hatchback-bolt-unveiled-auto-expo/story/202919.html [Accessed 26 Sep. 2017].
Chao, A., Gotelli, N.J., Hsieh, T.C., Sander, E.L., Ma, K.H., Colwell, R.K. and Ellison, A.M.,
2014. Rarefaction and extrapolation with Hill numbers: a framework for sampling and
estimation in species diversity studies. Ecological Monographs, 84(1), pp.45-67.
Gengler, C.E. and Mulvey, M.S., 2017. Planning pre-launch positioning: Segmentation via
willingness-to-pay and means-end brand differentiators. Journal of Brand
Management, 24(3), pp.230-249.
Goetz, T., Sticca, F., Pekrun, R., Murayama, K. and Elliot, A.J., 2016. Intraindividual
relations between achievement goals and discrete achievement emotions: an experience
sampling approach. Learning and Instruction, 41, pp.115-125.
Levy, P.S. and Lemeshow, S., 2013. Sampling of populations: methods and applications.
John Wiley & Sons.
Mook, P., Kanagarajah, S., Maguire, H., Adak, G.K., Dabrera, G., Waldram, A., Freeman, R.,
Charlett, A. and Oliver, I., 2016. Selection of population controls for a Salmonella case-
control study in the UK using a market research panel and web-survey provides time and
resource savings. Epidemiology & Infection, 144(6), pp.1220-1230.
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10
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Tata Motors Limited. 2017. Tata Motors unveils the All-New ZEST and the BOLT. [online]
Available at: http://www.tatamotors.com/press/tata-motors-unveils-the-all-new-zest-and-the-
bolt/ [Accessed 26 Sep. 2017].
The Economic Times. 2017. Tata Motors unveils Zest sedan & premium hatchback Bolt.
[online] Available at: http://economictimes.indiatimes.com/industry/auto/news/passenger-
vehicle/cars/tata-motors-unveils-zest-sedan-premium-hatchback-bolt/articleshow/
29815060.cms [Accessed 26 Sep. 2017].
Wells, J.D., Lecheta, M.C., Moura, M.O. and LaMotte, L.R., 2015. An evaluation of
sampling methods used to produce insect growth models for postmortem interval
estimation. International journal of legal medicine, 129(2), pp.405-410.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World
Scientific.
Wood, M.B., 2014. The marketing plan handbook. Pearson.
MARKETING RESEARCH OF TATA MOTORS ZEST SEDAN
Tata Motors Limited. 2017. Tata Motors unveils the All-New ZEST and the BOLT. [online]
Available at: http://www.tatamotors.com/press/tata-motors-unveils-the-all-new-zest-and-the-
bolt/ [Accessed 26 Sep. 2017].
The Economic Times. 2017. Tata Motors unveils Zest sedan & premium hatchback Bolt.
[online] Available at: http://economictimes.indiatimes.com/industry/auto/news/passenger-
vehicle/cars/tata-motors-unveils-zest-sedan-premium-hatchback-bolt/articleshow/
29815060.cms [Accessed 26 Sep. 2017].
Wells, J.D., Lecheta, M.C., Moura, M.O. and LaMotte, L.R., 2015. An evaluation of
sampling methods used to produce insect growth models for postmortem interval
estimation. International journal of legal medicine, 129(2), pp.405-410.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World
Scientific.
Wood, M.B., 2014. The marketing plan handbook. Pearson.
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