Marketing Strategies for Tata Nano: Enhancing Demand and Sales

Principles of Marketing 1 | P a g e
Principles of Marketing

Principles of Marketing 2 | P a g e
Executive Summary
The Tata Nano was manufactured by Tata Motors and the origination of manufacturing this
compact city car was providing the budget car for all the middle class and lower middle class
customer segment. The car was launched with the price of one lakh Indian rupees or US$2500 in
the year 2008. But before its launching, organization faced numerous issues and the impact of
these factors led to increase in the price of the car and decrease in the sale volume. Amongst
those factors, the major factor was relocation of the factory Singur (Thakkar & Shyam, 2018).
Apart from this, instances such as cars catching fire, lack of safety measures and low quality of
car due to its low cost were some of the major factors due to which the dream project of Tata
Motors did not moved as per the expectations. This report will aim over enhancing the demand
for Tata Nano in the target market and in relation to this; marketing strategies will be discussed
for the purpose of fulfilling desired goals and objectives.

Principles of Marketing 3 | P a g e
Table of Contents
Executive Summary.........................................................................................................................3
Company Recap...............................................................................................................................5
Marketing strategies.........................................................................................................................5
Target market and Positioning.....................................................................................................5
Marketing mix.................................................................................................................................6
Product.........................................................................................................................................6
Price.............................................................................................................................................7
Place.............................................................................................................................................7
Promotion.....................................................................................................................................7
People...........................................................................................................................................8
Processes......................................................................................................................................8
Physical Evidence........................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Principles of Marketing 4 | P a g e
Company Recap
Tata Motors Limited is an Indian multinational automotive manufacturing company. It is a
member of the Tata Group and the company is mainly engaged in the production and distribution
of trucks, cars, vans, sports cars, buses, coaches, military vehicles, etc. Its headquarters is
situated in Mumbai, Maharashtra and in 2008; organization launched the Nano, world’s cheapest
car. Along with launching the world’s cheapest car, Tata Motors acquired the English car maker
Jaguar Land Rover, the manufacturer of the Jaguar and Land Rover cars from Ford Motors. With
this acquisition, organization has made their position stronger in the global automotive industry
(Tata Motors, 2018). Tata Motors ranked 19th in the global automotive industry and it is
considered as the leader in terms of producing commercial vehicles.
Marketing strategies
These are the most crucial segment for every organization as these strategies not only help the
company to enhance their brand image but it also helps the organizations to approach to its target
audience along with spreading awareness with the objective of enhancing organizational
performance (Ryan, 2016). Tata Nano is a city compact car and its major target market segment
is lower middle and middle class consumers.
Target market and Positioning
Segmentation Type Segmentation Criteria Target Customer Segment
Geographic Region Tata Nano is available in India
Density Urban and rural areas
(Utkarsh, 2015).
Demographic Age Above 18 years
Gender Male & Female
Life Cycle Stage Lifetime.
Occupation Business professionals,
Students and all other