Question

How does Tata Motor's marketing objectives and its marketing mix strategy affect the pricing of the nano?

Answer 1

The marketing objective of Tata Motors is to provide quality service to the customer in low price, in this way company can fulfill customer needs and demand as well as company can achieve its goal. As far as marketing mix strategy is concerned they use the Market-Penetration pricing. By using this strategy, they can penetrate more market and know how to get large market place. The large amounts of customers are attracted by Tata Nano cars' price. Marketing mix of Tata Motors:

1) Product: The products of Tata Motor's have many special characteristics to them. Tata motors have been successful in creating and maintaining a professional brand image. The special feature attached with Tata Nano was its price. The cost of Tata Nano was Rs. 1 lac because of which it gained extreme popularity. Tata nano has been specifically designed with a small family in mind. The dream of a Middle and even lower middle class household to have their own car came alive with the announcement from Tata Motors regarding Tata Nano.

2) Price: The prices of Tata Motor's are generally affordable, acceptable by general public at large. Tata always have something for lower class people with Nano being their trump card. Tata motors follows penetration pricing strategy. The project Tata nano was designed to create an alternative for two wheelers at a nearby pricing range.  

3) Place: In case of vehicles, dealership method of distribution and sales is generally adopted. In case of Tata Nano similar method was adopted. Tata Motors the parent company has a vast and extensive distribution network that covers every nook and corner of the country. One can easily find a service and sales dealership for Tata Nano because of its parent company.

4) Promotion: Tata motors is responsible for the advertising of its products. Through advertising & sales promotion it attracts large number of customers.To promote Tata Nano various advertising measures were adopted. Tata nano has been able to create a brand image for itself separate from its parent company. Today each section of the society is aware of this product because of its high publicity. It has gone for an extensive market promotional policy for its product. Tata nano has gone for an all-embracing publicity on the internet.

Tata nano has an apt tag line “People’s Car” and this concept has led to its popularity in the Indian automobile market. This has been Ratan Tata’s answer to the middle class family’s quest of an affordable car. The marketing objective of Tata Motor's to provide quality service to the customer in low price and & by following penetration pricing strategy, Tata Motor's had priced Tata Nano at low price. Penetration pricing helps to reach a wide fraction of market by setting low price initially. Customers switch to the new brand because of its low price. Also, Tata Nano was unique in itself as it is one of the inexpensive car available in Indian market. Tata Nano was launched in the segment of being a cost leader in the broad market to attract maximum number of the population.