Positioning the Tata Nano – Case Memo

13. If the selling price is $22 per unit, what is the contribution margin per unit sold?

There were certain competitive threats due to opening up the Indian economy. One brand, instead of many, will create a strong equity that will benefit all Tata companies to fight competitors entering Indian market.

Pricing can play an important role in the success or disaster of any product. Too high a price and the product will fail; too low a price and not enough profits will be made to sustain business operations (Hisrich, Peters, & Shepherd, 2014). The key is to make the customer think that they are paying exactly the right price for the product. Anything else though in this regard means the product is not positioned well in the mind of the consumer. First of all, Gril-Kleen will have to decide on what sort of strategy it needs to pursue. This strategy is decided on three factors namely costs, margins and competition.

Contribution Margin = (Unit selling price – unit variable cost) / unit selling price = ($9.00 – $2.60) / $9.00 = 0.7111 = 71.111%

determined by world prices. In Bloch and Sapsford (2000) the price of manufactures, which is

Using $8.50 as the variable cost provided at the bottom of the case study and using $39.95 as the retail selling price as compared to $23.97 as the wholesale selling price (60% of the retail price), ServiSoft will realize a contribution margin of $31.45 with the retail distribution channel versus $15.47 with the wholesale distribution channel.

Over the past decade, Tata Communications has evolved from a wholesale service provider serving the Indian market to a leading provider of A New World of Communications to enterprise customers and service providers worldwide.

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).

3. Seven to eight percent profit margin on each textbook sold is reinvested in the company.

Tata Consultancy Services Ltd. (TCS) began its software research and service about three decades ago. TCS offers a range of IT solutions, services, outsourcing for and of business. It’s a part of Tata Group, one of India's respected business conglomerate, Headquartered in Mumbai, Maharashtra. They have 142 offices in 42 countries and 105 delivery

Was to focus on convenience and "coolness" of the product. Price was not an issue!

What’s more, the price is not only affected by demand. It may also be influenced by dealer to dealer. Different dealer will offer a different price because of delivery fee. Thus it is another particular factor that causes price difference.

What were the key challenges facing Tata Motors in the process of moving to produce passenger cars from successfully producing commercial vehicles?

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.

Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.