TATA NANO in Malaysia

MARKETING
PLAN

Submitted by:
Hardeep Singh
A00137210

1.0

EXECUTIVE SUMMARY

Tata Nano is the least expensive auto on the planet. It is sold in home
nation India around Rs 1-lakh i.e. around USD 2000. It is produced by Tata
Motor Limited, the biggest vehicle organization in India. It's Chairman, Mr
Ratan Tata imagines that Tata Nano to end up a "People's auto" which is
moderate by nearly everyone. Tata Nano was initially propelled in India on
first April 2009 and anticipated that would be in Indian market by July
2009. Since propelling, it has made a colossal buzz all over India. Inside
the initial two days of dining, it has gotten 5500 booking. The figures
continue expanding each day since the starting.
What makes Tata Nano so shoddy? Essentially, by making things littler,
lighter, get rid of shallow parts and change the materials wherever
conceivable without trading off the security and ecological consistence. It
is said that Tata Nano has preferable millage over Toyota Prius and same
gas discharge as a bike.
Tata Nano will be foreign made to Malaysia by Tata Industries in parts. It
will be amassed in its two plants i.e. in Shah Alam, Selangor and Pasir
Gudang, Johor Bahru. There are four dispersion focuses in Peninsular
Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata
Nano autos will be conveyed through these appropriation focuses as it
were. Request can be made vide these circulation focuses or its site.
There are three sorts of Tata Nano auto accessible i.e. Tata Nano, Tata
Nano CX and Tata Nano LX. Notwithstanding, because of hot climate in

Malaysia, just Nano CX will be conveyed to Malaysia and will be sold here.
The offering cost of Nano CX in Malaysia is RM 13,704 for each unit. It is
evaluated that gross benefit for the main year would yield xxx, second
year xxx and third year xxx. Evaluated regularly scheduled payment
installment is xxx for a long time's period. With this value, the objective
market is wide which incorporates those with salary RM 2000 every
month, understudies, female specialists and bikes' riders.
2.0

SITUATION ANALYSIS

Tata Motors Limited is India's biggest vehicle organization, with incomes

of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the pioneer in
business vehicles in every section, and among the main three in traveler
vehicles with winning items in the minimal, average size auto and utility
vehicle fragments. The organization is the world's fourth biggest truck
producer, and the world's second biggest transport maker. In March 2008,
Tata Motors gained Ford's UK based auto brands Jaguar and Land Rover
(BBC News, 2008).
As per Ratan Naval Tata (Chairman of Tata Group), the requirement for a
development like Nano must help out the general population of India and
transport. Inaccessibility and low quality of mass transport is a typical
issue in India. In a bike, father driving with senior kid remaining in front
and spouse behind holding an infant is standard in this nation.
Consequently, this is a generally a dangerous method of transporting a

family. Hence, because of this Tata Nano was made as a more secure type
of transport.
As one of its goals is to wind up an Indian business combination working
in numerous nations, Tata Nano will be presented in Malaysia.

2.1

Market Summary

It is estimated that Malaysia has more than 5 million motorcycles on the

road, compared to over 4 million motorcars (ICE, 2001). The majority of
motorcycle buyers or users does not own a car and belong to the lower and
middle-income group. A significantly larger percentage of motorcycle users
in Malaysia are male.

2.1.1 Target Markets

The company is targeting lower income group with family, first-time buyers
of car (fresh graduates) and motorcycle owners.

2.1.2

Positioning

Tata Nano will position itself as the world least expensive auto but then does
not trade off the quality, wellbeing and environment. This situating will be
accomplished by utilizing Tata Nano's focused edge: businesses encounter
from the parent organization Tata Motor who has been in vehicles enterprises
(business, travellers and utilities) since 1945. Tata engine has great provider
producer association with more than 100 segments.

2.1.2 Demographics
Population, demographics, rural urban, vital statistics from Malaysian auto
report.

2.1.4 Geographics
Tata Motors has targeted the urban area in Malaysia. This is going to be
Kuala Lumpur and Johor Bahru.

There are 5 million motorcycle riders in

Malaysia.
2.1.5 Distribution review
Much the same as in India, Tata Nano will be situated as a reasonable auto
even in abroad markets. 'Simple to-amass packs' will be foreign made from
Tata in India. The auto then will be assembled at pre-characterized areas.
The proposed areas are Shah Alam, Selangor and Pasir Gudang, Johor Bahru.
It will be then redistributed to showrooms that will be set up in view of locale.
30 deals workplaces will be opened all through Malaysia.
2.1.6

Competitor review

The main competitors are Proton, Perodua, Toyota and Honda. The table
below indicates

the market shares of the main competitors in the auto

industry for the year 2014.

2.2 SWOT Analysis

The following SWOT analysis investigates the Malaysian political,
economic and business environment. The following finding are adapted
from Malaysian Auto Report 2009.
a. Malaysia Political SWOT
SWOT
Strengths
-

Strong government support in developing the creative content sector

(national
policy, developmental programs, grants, incentives)

Availability of raw talent that can be trained

Growing presence in the international market as a regional player for

animation and live action production

Active overseas promotion of industry players who are capable of
servicing the

needs of the global market

- Malaysia is a successful example of a democratic Islamic state. Despite
murmurs of

discontent among hardline Muslims in some states,

multiracial Malaysia is unlikely to abandon moderate Islam

Weaknesses
The Malay half of the population holds a constitutionally enshrined special
position in society, amounting to positive discrimination in not only jobs,
but also wealth.
Opportunities
-

Relatively high level in GDP per capita

Good penetration of Internet
Start of terrestrial digital broadcasting at the end of 2013 and the
completion of

shifting predicted by 2015

-

Strong connections with Islamic nations, which provide wide opportunity

for
market expansion
Threats
-

Limited size of domestic population

Importance of export and import in the content industry as same as

other industries
Brain drain into other countries
Comfort zone mentality

b. Malaysia Economic SWOTaysia Economic SWOT

Strengths

During the past four decades, Malaysia has transformed itself from a
commodities-dependent

backwater

into

major

world

source

for

electronics andcomputer parts. Malaysia is the worlds largest producer of

rubber, palm oil, pepper and tropical hardwoods, and is also a net
exporter of crude oil. All this provides a solid platform for economic
growth
Weaknesses
Malaysias relative insulation from global energy price shocks is being
eroded. Within the next 5 years Malaysia could become a net importer of
oil Malaysias economic openness can be as much of a burden as a
benefit, since it confers a high degree of vulnerability to global growth
and capital flows.

Opportunities
The opportunity for private-sector-led growth will improve as the
government continues divestment of state shareholdings in order to raise
funds to narrow the budget deficit.
Threats
Wages are higher in Malaysia than in a number of its competitors, such as
China and Vietnam, which could be a long-term hindrance to economic
expansion. To maintain its competitive edge, Malaysia needs a steady

stream of inward investment Export competitiveness could be eroded if

the exchange rate continues to appreciate markedly.
c. Malaysia Business Environment SWOT
3
4

Strengths
Standards of corporate governance in Malaysia have greatly improved
since the Asian financial crisis at the end of the 1990s more so, in fact,
than in many neighbouring countries. Foreign companies, or at least
foreign manufacturing companies, looking to do business in Malaysia will
continue to be welcomed with open arms, with the government offering
lavish tax breaks and concessions.
Weaknesses
State subsidization of prices will remain a peripheral but persistent part of
daily economic life in Malaysia. Doing business in Malaysia will always, to
some extent, mean dealing with the politically well-connected. Big
construction projects and big contracts for foreign construction firms
are unlikely to be as much of a priority for Malaysias government as they
were under the previous administration of former prime minister Mahathir
Mohamad.

Opportunities
The opportunity to invest in Malaysian state assets could improve. The
government, if it sticks to its word, will conduct its biggest ever
divestment of state shareholdings. Malaysia is eager to compete globally

in banking, and although it currently lacks a domestic champion, with ten

main institutions in the market, bank consolidation is a strong possibility.
Threats
The waterways and shipping lanes that surround Malaysia will continue to
pose the threat of piracy and terrorism Malaysia is at risk, conceivably, of
losing out to China in the race for foreign investment. Penang, once the
pillar of Malaysias electronics industry, has seen an exodus of foreign
firms, with Seagate, Motorola and Solectron all shifting production
elsewhere in Asia.

d. The following will be key strengths and weakness within the

company and describes the opportunities and threats facing
Tata Nano.

Strength
The internationalisation strategy so far has been to keep local managers
in new acquisitions, and to only transplant a couple of senior managers
from India into the new market. The benefit is that Tata has been able to
exchange expertise. The company has had a successful alliance with
Italian mass producer Fiat since 2006. This has enhanced the product
portfolio for Tata
exchange.

and Fiat in terms of production and knowledge

For example, the Fiat Palio Style was launched by Tata in

2007, and the companies have an agreement to build a pick-up targeted

at Central and South America.
Weaknesses
The company's passenger car products are based upon 3rd and 4th
generation platforms, which put Tata Motors Limited at a disadvantage
with competing car manufacturers. One

which

is

often

not

recognised is that in English the word 'tat' means rubbish.

Opportunities
In the mid-year of 2008 Tata Motor's reported that it had effectively
obtained the Land Rover and Jaguar brands from Ford Motors for UK 2.3
million. Two of the World's extravagance auto mark has been added to its
arrangement of brands, and will without a doubt off the organization the
opportunity to market vehicles in the extravagance sections. Goodbye
Motors Limited gained Daewoo Motor's Commercial vehicle business in
2004 for around USD $16 million. Nano is the least expensive auto in the
World - retailing at minimal more than a motorbike. The new and
developing mechanical countries, for example, India, South Korea and
China will have a hunger for ease traveler and business vehicles. These
are the open doors. Notwithstanding, the organization has set up a
proactive Corporate Social Responsibility (CSR) board of trustees to
address potential techniques that will make is operations more practical.
The scope of Super Milo fuel proficient transports is controlled by superproductive, eco-accommodating motors. The transport has discretionary

natural grip with supporter help and better air admissions that will
decrease fuel utilization by up to 10%.

Threats
Other competing car manufacturers have been in the passenger car
business for 40, 50 or more years. Therefore, Tata Motors Limited has to
catch up in terms of quality and lean production. Sustainability and
environmentalism could mean extra costs for this low-cost producer. This
could impact its underpinning competitive advantage. Obviously, as Tata
globalises and buys into other brands this problem could be alleviated.
Since the company has focused upon the commercial and small vehicle
segments, it has left itself open to competition from overseas companies
for the emerging Indian luxury segments. For example, ICICI bank and
DaimlerChrysler have invested in a new Pune-based plant which will build
5000 new Mercedes-Benz per annum. Other players developing luxury
cars targeted at the Indian market include Ford, Honda and Toyota. In fact,
the entire Indian market has become a target for other global competitors
including Maruti Udyog, General Motors, Ford and others. Rising prices in
the global economy could pose a threat

to Tata Motors Limited on a

couple of fronts. The price of steel and aluminium is increasing putting

pressure on the costs of production. Many of Tata's products run on Diesel

fuel which is becoming expensive globally and within its traditional home
market.

2.3
Objectives and issue
We have set aggressive yet achievable objectives for the first, second and
third year of market entry.
First year objective (July 2017 to December 2017)
We want to achieve 25,000 units of sales gaining . market share %
get from market size
Second year objective (JAN 2018 TO DEC 2018)
We want to achieve 10% increase in quarterly basis (RM 48,600)
Third year objective (JAN 2019 TO DEC 2019)
We want to achieve 10% increase in quarterly basis (RM 53, 460)
2.0

MARKETING MIX STRATEGIES

3.1 Product Strategies

The item methodology which will be adjusted would be the straight item
augmentation, which is showcasing the auto in another remote market with
no change. This is on the grounds that there would be no extra item
improvement cost, producing changes, or new advancement.
3.2 Product Review

There are three variants in the Nano range: Nano, Nano CX and Nano
LX

Only the Nano CX variant would be introduced in the Malaysia Market

for the first stage

Tata Nano LX will introduced in the Malaysia Market during the

following year

The car has achieved its low price by minimizing costs on unnecessary
luxuries, the basic Nano comes without front and rear fog lights,
without a heater or air conditioning, without anti-lock brakes, only one
single windscreen wiper, manually operated windows, manual steering
with no air bags, tiny 12 wheels, plastic body parts joined with adhesive
instead of more conventional metal and welding and a two cylinder 623
cc engine that provides a massive maximum speed of 65 mph (around
105 km/h).
Among the features of the car are:
a) Stylish and comfortable
The Peoples Car, designed with a family in mind, has a roomy
passenger compartment with generous leg space and head room. It
can comfortably sit four persons. Four doors with high seating position
make ingress and egress easy.
Yet with a length of 3.1 metres, width of 1.5 metres and a height of 1.6
metres, with adequate ground clearance, it can effortlessly manoeuvre
on busy roads in cities as well as in rural areas. Its mono-volume
design, with wheels at the corners and the power train at the rear,

enables it to uniquely combine both space and manoeuvrability, which

will set a benchmark among small cars.
b) Fuel-efficient engine
The People's Car has a back wheel drive, all aluminum, two-chamber,
523 cc, 33 PS, multi-point fuel infusion petrol motor. This is the first
occasion when that a two-barrel gas motor is being utilized as a part of
an auto with a solitary balancer shaft. The incline plan technique has
minimized weight, which boosts execution per unit of vitality devoured
and conveys high fuel proficiency. Execution is controlled by an
uncommonly composed electronic motor administration framework.
c) Meets all safety requirements
The People's Car has a back wheel drive, all aluminum, two-chamber,
523 cc, 33 PS, multi-point fuel infusion petrol motor. This is the first
occasion when that a two-barrel gas motor is being utilized as a part of
an auto with a solitary balancer shaft. The incline plan technique has
minimized weight, which boosts execution per unit of vitality devoured
and conveys high fuel proficiency. Execution is controlled by an
uncommonly composed electronic motor administration framework.
d) Environment-friendly
The People's Car has a back wheel drive, all aluminum, two-chamber,
523 cc, 33 PS, multi-point fuel infusion petrol motor. This is the first

occasion when that a two-barrel gas motor is being utilized as a part of

an auto with a solitary balancer shaft. The incline plan technique has
minimized weight, which boosts execution per unit of vitality devoured
and conveys high fuel proficiency. Execution is controlled by an
uncommonly composed electronic motor administration framework.
3.3 Branding
Brands distinguish the source or creator of an item and permit customers
either people or associations to allocate obligation regarding its execution to
a

specific

maker

or

merchant.

Marking

is

investing

items

and

administrations with the force of a brand. It's about making contrasts

between items. For marking procedures to be fruitful and mark esteem to be
made, purchasers must be persuaded there are important contrasts among
brands in the item or administration classification. In Tata Nano's case, the
marking methodology utilized is corporate name joined with individual item
names. This present organization's name legitimizes and the individual
name individualizes the new item
3.4 Product Strategy
The Tata Nano CX, including all the features described in the earlier Product
Review section, will be sold with a three-year warranty or 100,000km
warranty, whichever comes first. We will introduce the Tata Nano LX during
the following year, after we have established our Tata brand. The brand and
logo will be displayed on the car as well as in all marketing campaigns.
3.5 Pricing Strategies
The Cost price is an estimated USD2, 420 or equivalent to RM8,954, which
includes import tax, duties excise, sales tax, shipment costs and assembly

cost. The selling price for the Malaysian market is RM13,704.00, which is
inclusive of standard accessories, but exclude road tax (RM70.00),
registration fees (RM150.00), number plate (RM50.00) and ownership
endorsement fee (RM50.00), sales tax (RM1370.40) which amounted to
RM320.00. The On-The-Road price will be RM15797.40. These prices reflect
a strategy of taking a share from established competitors, such as Perodua
s model of Kancil and Viva.
3.5.1 Setting the price selecting price objectives
Tata Nano Malaysia (TNM) has set major three objectives in its effort to
position itself in the Malaysia Automotive market.

The objectives are:

Survival, maximum current profit and maximum market share.

a. Survival
Intense competition from Malaysias second car manufacturer, Perodua
for a share of the automotive market segment for the below 1,000 cc
category will spur TNM to ensure that the car price covers variable
costs and some fixed costs. In this case, survival is a short term
objective as in the long run, TNM will add value such as added safety
features to the Nano range.
b. Maximum current profit
TNM has set a price that will maximize current profits, cash flow and
return on investment, after taking into consideration the demand and
costs involved. As this category of small foreign cars segment has not
been really tested by other manufacturers, therefore the demand is
rather difficult to estimate but TNM is confident of a good response
towards its entry into the Malaysian market.
c. Maximum Market Share

For the Malaysian market, TNM will implement the market-penetration

pricing, which is to set a low price for a new car in order to attract a large
number of buyers and a large market share. This will be done by
achieving high sales volume, which will result in falling costs, allowing
the company to cut its price even further. We are positive enough that
the Malaysia car market is highly price sensitive, as a low price produces
more market growth.

TNM is also confident that production and

distribution costs will fall as sales volume increases and the low price of
Nano cars will help to keep out competition and maintain its low-price
position. The low-price entry will provide Malaysians consumers with a
viable alternative to Perodua Malaysia second National car. Further
liberalization is expected as Malaysia implements the ASEAN Free Trade
Area agreement, which commits the Malaysia Government to scrap
foreign car taxes.
4.0

PROMOTION STRATEGIES

4.1

Objectives of Promotion Strategies

Before determine the promotion strategies, we need to very clear

about what are the objectives we need to achieve. We know as above, our
missions are to promote Tata nano in Malaysia and increase the sales
quarterly. Tata Nano is very new for Malaysian, they feel fresh with this new
brand and concept of this car. Tata Nano will get into Malaysia market in July
2016.

So first of the objective for promotion strategies are aims to create brand
awareness and concept/knowledge of this new car Tata Nano. This is the
cheapest car in the world and

burst into the worldwide market in the

short time. But still is the new brand for the Malaysians, so we do the
advertisement and organize the event or campaign in sufficient detail to
establish the good brand attitudes. Brand awareness is important to provide
a

foundation for brand equity.

After that, our second objective is knowledge and persuasive. We aim to

create liking, preference, conviction, and purchase of a Tata Nano car. We
can do the comparison with other cars which are higher purchase price and
this price is not every people will be affordable especially lower income
families and students. Beside that we will convince current purchasers that
we will give the potential customer to enjoying the good experience with Tata
Nano by give try to drive the Tata Nano before buying the car. And also will
provide them warranty to the Tata Nano.
We will organize all the promotion strategies with lower cost to maintain the
lower purchase price for the Tatanano in Malaysia.
4.2

Promotion Tag line

Have Fun, Pay Less, get more with Tata Nano

Why we establish this tag line? Because this is make all the Malaysian too
easy to remembered Tata Nano and feel happy all the ways with Tata Nano.

Tata Nano is safety and you can travel everywhere by Tata Nano with your
family or friends with fun, but you just need to pay all of this at lower price
Pay Less & Get More.
Beside that we can enjoying special fun with Tatanano, our earth also will
feel happy with Tatanano because Tatanano also is the environment friendly
car.
4.3

Advertising Program
We aim to inform Malaysians this is the cheapest car in the world and

persuade Malaysians to buy Tata Nano due to this car is safety, useful, all in
good quality and also environment friendly by developing an advertising
program.
4.3.1 Online Advertisement
Initial step we begin before dining Tata Nano, we do the online notice. Tata
Nano made a Web website www.tatanano.com on March 2016 to better
speak with the clients. In the Web website, we posted the photograph
classifications and recordings to give clients the data and extraordinary
elements of Tata Nano and bring them inside the organization.
Notwithstanding photographs and recordings, the site connections to late
news about Tata Nano and space for open input.

Other than that, Blogs have turned into an imperative outlet for informal
which are routinely redesigned online journals. Online journals are uniting
individuals with normal interests. They fluctuate wide and can impact an
inconceivable group of onlookers because of numerous web clients have
perused Blogs. We can build up the blog arrange and painstakingly observing
to discover what's on individuals' psyches particularly the potential clients.
This is a least expensive and great approach to develop mark mindfulness.
4.3.2 Television Advertisement
Television advertisement is very expensive but this is the most
powerful to perform the Tata Nano to the public by demonstrating Tata Nano
attributes

and

persuasively

explaining

their

corresponding

consumer

benefits. By lower advertising budget, we cannot do the TV advertisement in

whole day, so we just choose the prime time (7pm 11pm) to place the
advertisement. By properly designed and executed TV advertisement can
improve brand equity and affect sales and profits.
4.3.3 Radio Advertisement
Most of the Malaysians listen to the radio daily. Now a day have many
facilities such as MP3, hand phone and so on, is convenience for the people
to listen the radio anytime at anywhere, this is a cheap and pervasive
medium for us to create the brand awareness by repeatedly listen the
advertisement and the brand name. Advantages of the radio advertisement

are flexibility, quick response and also more effective media for reaching
teens.
4.3.4 Newspaper Advertisement
Beside that the radio, most of the Malaysians also will saw a
newspaper every day. So this is good market coverage. From here, Tata Nano
can get the broad acceptance and good reputation from Malaysians.
Newspaper advertising is inexpensive.
4.4

Marketing Campaign
This Marketing campaign is based on every four months:

4.4.1 Marketing Campaign for July 2016 to October 2016

Tata Nano will lunch at Malaysia on July 2016. Propelling system is vital for
situating which is the demonstration of outlining Tata Nano and picture to
involve Malaysia in the minds of the objective market. Propelling system
likewise is one of the advancement techniques to manufacture mindfulness,
through propelling at open focus Tata Motor will acquaint the Tata Nano with
market.
In July and August, we concentrate on promoting effort which will happen at
all the IPTA and IPTS which have composed the meeting, by giving item show
and flag; and the people groups can have the involvement with Tata Nano by
give the chances to drive Tata Nano around the grounds. Subject for this

crusade is 'Great future with Tata Nano'. Explanation behind this advertising
effort is one of our objectives are understudies, for example, crisp graduate
who simply land the new position furthermore the universal understudies.
New graduate need the transportation in their working life however they
can't bear to purchase the excessively costly auto; global understudy simply
requires the auto which is economy and utilizing it as a part of brief period
around 2-3years for their understudy life in Malaysia. This is least expensive
cost by occasion or battle in the grounds.
In September and October, Malaysians will praise two major celebrations
together, there are Hari Raya Puasa Aidifitri and Deepavali. So we can
concentrate on lower pay amass with family particularly those are originated
from Malay family or Indian family. Utilize the mail, phone, fax, email to
discuss specifically with them. Base on recorded, a greater amount of the
Malay or Indian will purchase the auto before celebration. 'Raya with Tata
Nano' can be the subject for our crusade at this period, and advance them
Tata Nano is least expensive and wellbeing.
4.4.2 Marketing Campaign for November 2016 to February 2017
In November and December, Malaysia have the Mega Sales due to
Merry Christmas and New Year in the end of the year at whole Malaysia so
that have many people will go to shopping. We can organize the event at
shopping centers in Malaysia such as KLCC, Midvalley, Berjaya Times Square,
and Sungai Wang by providing product display and banner.

On January and February, most of the employees in Malaysia will get the
bonus in this

period so the purchasing power will increase. Beside that

Chinese New Year is at February. Send the brochures to the small and
medium company or office and do the
Follow

by

mail,

telephone,

fax

introduction or briefing to them.

or

e-mail

to

developing

effective

communication.
4.4.3 Marketing Campaign for March 2017 to June 2017
We will do the street appear at each state (entire Malaysia). We can have the
street appear at the focus market, for example, all market at all the state.
Have many individuals will go to advertise early morning to purchase the
vegetable, take the breakfast or purchase the essential things. A large
portion of them are ladies or housewife who might be originated from the
lower or medium pay family. Some of them go to Pasar by bike or by
transport. There are our objective markets. We can elevate Tata Nano to
them, for example, Tata Nano is the least expensive auto on the planet, Get
the Tata Nano to be second auto for their relative particularly for their
youngsters or senior parent, 'Simple existence with Tata Nano'. Housewife or
mother can go to Pasar or anyplace by Tata Nano superior to bike or by
transport for finish their day by day matter all the more viably. At the point
when the ladies get the news, they will pass this news to their companion
quickly. This will help us to advance Tata Nano adequately in the nearby
society. At the street appear, individuals likewise can get the involvement

with Tata Nano by have the chances to drive the Tata Nano auto before buy
it.
5.0

Channel of Distribution Strategies

5.1

Direct marketing channel (zero-level channel)

Manufacturer

Customers

We perform the Tata Nano in Malaysia by selling it directly to

customers. Customers can deal directly with our dealers and make the
booking for Tata Nano by visit our sales office or at any special
event/campaign. Besides that, customers also can get the information or
make the booking via the telephone (1-800-88-nano) and through the
Internet ( www.tatanano.com ). By this way we can save more cost and
maintain the cheapest purchasing price rather than through retailers or
resellers.
5.2

Physical Flow

Tata Motor at India

Transporters,
Warehouses

Assembly Workshop
At Malaysia

Customers

From the diagram, can know that Tatanano will send the paths to the
Malaysia after received the order from the sales office. After that, we will
assemble a car at the workshop. Finally, send to the customers directly. From

here, we can often provide faster delivery to customers because we are

closer to the customers.
5.3

Payment Flow

Tata Motor at India

Banks

Sale Office
At Malaysia

Banks

Customers

Customers can be paying bills by cash or do the financing from bank.

Customers pay less by this diagram due to not need to pay extra commission
to third party such as wholesalers or retailers. Tata Motor also can collect the
payment more efficient.
5.4

Information Flow

Tata Motor at India

Sale Office
At Malaysia

Customers

Customers can get the information directly from Tata Motor such as
new product, price development and so on. Tata Motor can more
understanding customer's needs when receiving customers, response calls
and mailings or through internet blog. If customers have any need or
complaint, we can satisfy them immediately by deal with customers directly.
5.5

Promotion Flow
Marketing Campaign/Event

Tata Motor at India

Sale Office
At Malaysia

Media

Customers

Have two methods for advancement stream, specifically and in a

roundabout way. Specifically, is we'll sorting out the promoting effort,
occasion and street appear. By along these lines, we'll elevate Tata Nano to
target advertise by face by face and give the chances to them attempt to
drive the Tata Nano. Backhanded ways are we will do the notice through
media, for example, web, TV, radio furthermore daily paper. By this
advancement stream, Tata Motor intends to make mark mindfulness and
increment the deals in the Malaysia.
6.0 Financial Plan
This section will offer the overview of Tata Nano related marketing activities.
It is including, sale forecast, expense forecast, break even analysis and how
those relate to the market strategy.

6.1 Break even analysis

Break even analysis indicates that 3369 unit or $ 46,168,776 will be
required in monthly sales revenue to reach the breakeven point.

100000
90000
80000
70000
60000

fixed cost

50000

total cost

40000

total revenue

30000
20000
10000
0
1000

2000

3000

4000

5000

6000

7000

Table: Break Even Analysis

Break even analysis:
Monthly

unit

break

even

3369
Monthly

sales

break $46,168,

even

776

Monthly unit production

6083

Average

per

unit $13704

revenue
Average

per

unit $8,954

variable cost
Average per unit fixed $2630.28
cost
Estimated
fixed cost
6.2 Sales forecast

monthly $16,000,
000

Deal was estimated quarterly premise, with modification of occasional

component. At Malaysia there is 3 fundamental festivals every year, which
Aidil Fitri, Chinese new year, and Deepavali, those variables were utilized as
occasional element. Since one of our objective markets is crisp graduate
understudy, graduation month likewise was utilized as occasional element to
modify our gauge deals. The deals were anticipated to build 10 percent every
year; deals gauge can allude to diagram underneath.
Figure: Sales Forecast

Sales Forecast Quarterly (unit)

30000
20000
25410
23100
21780
21000
10000 18000
19800
19800
18000
16600
16000
0

Sales (unit)

6.3 Marketing Expense Forecast

Advertising cost figure will be utilized as instrument to keep the
promoting office on target and give pointers when adjustments are required
for the best possible execution of the showcasing arrangement. Costs are
followed in significant showcasing classifications of promotion, advertising
effort, coordinate advertising and other. Advertising are planned at around of
8 percent of aggregate deals for third quarter of 2017, the showcasing cost
will be high amid those quarter to enter showcase and advancing our item so
costumer will acknowledge about presence of our new item. For the following

coming years, the advertising cost will have planned around 3-4 percent of
aggregate deals.
Table: Marketing Expense Forecast

Advertisement
- Newspaper,

3rd

4th

1st

2nd

Quarter

Quarter

Quarter

Quarter

2017

2017

2018

2018

2`000,000

1,500,000

1,200,00

1,200,000

Billboard and
-

Magazine
TV advertisement

0
5,000,000

4,000,000

3,500,00

3,500,000
75,000
150,000

Online

100,000

100,000

0
75,000

advertisement
Radio

200,000

200,000

150,000

advertisement
Marketing campaign
- Grand Launching

7,000,000

event
Graduation

2,000,000

campaign
Hari raya aidil fitri

2,000,000

campaign
Depavaali

2,000,000

campaign
Christmas

2,000,000

campaign
Chinese new year

2,000,00

0
3,000,000

- Roadshow
Direct marketing
- 1-800 toll free
- Web site
Other
- Printed material

150,000
500,000

100,000
75,000

100,000
75,000

100,000
75,000

1,000,000

800,000

600,000

600,000

Total

19,950,00

10,775,00

7,700,00

8,700,000

Percent of sales

0
8.09%

0
3.75 %

0
3.12%

3.97%

(brochure, banner,
etc)

Table: Milestone of Key Marketing Activities

Milestone

Start

Marketing

date
1/02/201

manager

Departm

Marketing

ent
marketin

manager

Promotion

Promotio

and

advertising

advertisi

manager
Promotion

ng
Promotio

and

billboard

advertising

advertisi

advertisement
TV advertisement

manager
Promotion

ng
Promotio

plan

End date
1/03/2017

completion

Web site completion

1/02/201

15/03/201

and launching

Newspaper,
magazine

and

1/07/201

30/06/201

1/07/201

30/06/201

Budget
0

500,000

5,900,000

16,000,000

and

and

Radio

1/07/201

30/06/201

advertisement

and

advertising

advertisi

manager
Promotion

ng
Promotio

and

advertising

advertisi

7,000,000

manager
Marketing

ng
marketin
g
Sales

700,000

and

and

Grand launching

06/07/20

Graduation

17
01/08/20

31/08/201

2,000,000

manager
Sales

campaign
Harirayaaidilfitri

17
1/09/201

7
30/09/201

2,000,000

manager
Marketing

marketin

campaign
Depavaali campaign

7
1/10/201

7
31/10/020

2,000,000

manager
Marketing

g
Marketin

Christmas and new

7
10/11/20

17
10/01/201

2,000,000

manager
Marketing

g
Marketin

year campaign
Roadshow

17
01/03/20

8
01/06/201

3,000,000

manager
Sales

g
Sales

18

manager

7.0 IMPLEMENTATION AND CONTROL

The objective of tata nano marketing plan is to serve as reference for the
organizations. The following areas will be monitored to gauge performance:

Revenue: monthly and annual

Expense: monthly and annual

Customer satisfaction

Sales growth by 10 percent annually

7.1 Marketing Organization

Promoting director will be essentially in charge of the showcasing exercises.
Showcasing supervisor will designate duties to advancement and publicizing
director to oversee item advancement and promoting. Deals director will in
charge of offer execution. Showcasing executive will administer all office

Marketing
director

Marketing
manager

Sales
manager

Promotion
and
advertising
manager

7.2 Contingency plan

Difficulties and risks

Slow sales resulting less than projected cash flow

Unexpected and excessive cost increase compared to the forecasted

sales

Overly aggressive and debilitating actions by competitors

Significant economic downturns

Worst case risk includes

Liquidate asset to cover marketing expenses and liabilities

Determining the product cannot support itself on ongoing basis

References

http://choubeyrajj.blogspot.ca/2013/07/tata-nano-marketing-strategies.html
https://www.linkedin.com/pulse/analysis-marketing-strategy-tata-nanokumar-utkarsh
http://www.motortrader.com.my/news/category/market-reports/
http://paultan.org/2016/01/21/2015-malaysia-vehicle-sales-market-review-bybrand/

http://www.heritage.org/index/country/malaysia