Marketing Segmentation of Tata Nano in India and Its Targeting and Positioning Strategy.

Market segmentation is where marketers split the market into groups with similarities that would make it easy to target their product to the consumers, if they

During this project I researched on how TATA developed NANO costing Rupees1 lakh ($ 2500 U.S) and what will be its effects. A survey was also done for understanding consumer buying pattern and preferences (which is a part of secondary data).

They have a very clear strategy for the pursuit of their goal and vision. The market segmentation as well as the identification of target markets is the important element of each marketing strategy at which they are the basis for determining any particular of the marketing mix, which is product, pricing, place and promotion. Market segmentation reveals the company's market segment opportunities. The company has to evaluate the various segments and decide how many and which segments it can serve the best. In evaluating different market segments, a company must consider of three factors, that is, segment size and growth, segment structural attractiveness and also company’s objectives and resources. (Armstrong & Kotler, 2005)

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications

Tata engineered this car with the idea in mind to create a car that represented the base cost of owning a car. This cost strategy targets two important, but large market segments. Tata plans to reach all of those who had not purchased a car in the past. This group included those who never could afford a car, and current owners of other passenger vehicles such as motorcycles. Because the price of the car was so low, each consumer would have to weigh the option of purchasing a Nano over a motorcycle. The Nano was appropriately designed to be more beneficial to this target market than a motorcycle. It promised comfort, agility, low carbon emissions, and could even be seen as a statement of status. With so many pros and so few cons, many motorcycle and non-vehicle owners purchased the

Market segmentation is a process of segregating the market into different smaller groups. A market comprises of large number of heterogeneous customer base with distinct tastes and preferences. A marketer needs to classify and segment people into smaller homogeneous groups basis similar characteristics, tastes, preferences, likes, etc. so that they will respond in a similar fashion to a particular product launched for that segment. Thus, market segmentation can be defined as, “the sub-dividing of a market into homogeneous subsets of customers from the

Segmentation brings benefits not only to the marketer, but to the customer as well. When segmentation attains higher levels of sophistication and perfection, customers and companies can conveniently settle down with each other, as at such a stage, they can safely rely on each other’s discrimination. The firm can anticipate the wants of the customers and the customers can anticipate the capabilities of the firm.

Tata motors Indica was the elementary car which was launched in the market beside maruti 800 which was already in the market and competing well in the automobile industry. Maruti 800 had a competitive advantage over the other competitors

Production appears to be a constant problem for Tata Motors. Branded production of Tata motors vehicles is geared towards economical cars and not luxury, while it appears that the market is geared more towards luxury. Tata Motors branded car sells fell 31 percent from 2013 to 2014, and in 2015 fell another 24.5 percent from 2014. Production also appeared to have missed a large flaw in the Nano which caused it to catch fire. Marketing also seems to be lacking in other countries. Although Tata Motors is present in many countries, the largest portion of their consumer based is India where the company is mainly located. Although the largest portion of their sales comes from India, Tata Motors holds very little of the market share for passenger vehicles in India.

Between 1970 and 1984 cars were considered a luxury product; manufacturing was licensed, manufacturing was restricted; there were quantitative restrictions on import and a tariff structure designed to restrict the market. The market was dominated by 6 manufacturers - Telco (now Tata motors), Ashok Leyland, Mahindra & Mahindra, Hindustan motors, Premier automobiles and Bajaj auto.

Market segmentation was to dividing a market into distinct groups of buyers with different needs, charactistics or behaviour who might require separate products or marketing mixes, the company will first

TATA Motors is the flagship company of the TATA group & is India's largest automobile player with consolidated revenues of USD 14 billion in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. TATA Motors was listed on the New York Stock Exchange in 2004.

‘Market segmentation represents an effort to identify and catergorise groups of customers and countries according to common characteristics’ (Keegan and Green 2016, p.228). For any business, it is crucial that they segment their market accordingly or they will risk forgoing sales opportunities. Fahy and Jobber (2015) identify the objective of market segmentation as distinguishing groups of customers with similar requirements so

Economic With business practices all over the world , Tata Motors concentrates on global economies while focusing on individual markets within countries. In recent years Tata Motors has experienced high growth since 2004. They have created joint ventures with 5 countries across the

Then use a combination of the various market segments to narrow down on an EFFECTIVE target market. Some of these may include, but are not limited to demographic, geographic, and behavioral. They were really pushing the whole “cheap” aspect in an area where the market segment is more interested in cars that symbolize a greater status. In other words, the Tata Nano is