Marketing Strategy of Tata Motors

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Tata Motors Limited, Formerly known as TELCO, is a multinational corporation headquartered in Mumbai, India. It is India's largest passenger automobile and corporation commercial vehicle manufacturing company. Tata Motors was established in 1945, when the company began manufacturing locomotives. The company manufactured its first commercial vehicle in 1954 in collaboration with Daimler Benz AG, which ended in 1969. The Tata Nano is a car manufactured by Tata Motors. Made and sold in India, the Nano is the cheapest car in the world today. Before it went on sale, a price of 1 lakh (US$1,900) was widely touted. Since its 2009 debut, the price has increased, while the Nano remains the lowest-cost four-wheeled passenger vehicle in India, it is significantly more expensive than a motorcycle, a popular means of cheap transport in the country. The company is targeting lower income group with family, first-time buyers of car (fresh graduates) and motorcycle owners. The factors which have the greatest influence on Tata’s decision about pricing its Nano. Price is the sum of value that a customer is willing to pay or give in exchange for the benefits gained from the purchase of a product or service. There are several factors which have the greatest influence on Tata’s decision about pricing its Nano. One of the factors is a consumer behavior. The response of the customers is towards when a new product has been introduced to the public. For instance, its qualities are the cheapest car in India, but are more expensive than a motorcycle which is commonly used by the people. This may lead the company to reduce its car price in order to compete with other means of transport. The other factor is customer satisfaction. This is a major factor in reduction of product price because it is all about the customer getting their money’s worth. It seems self evident that companies should

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