STP Analysis of Tata STP Analysis of Tata Nano Vs. Maruti Nano Vs. Maruti

Suzuki AltoSuzuki Alto

Presented By:- Presented By:- Samridh KhuranaSamridh Khurana

STP Analysis STP Analysis Segmentation :Variable Used

-- Geographic: rural and urban -- Demographic: family size & income. -- Behavioral: benefit & user status.

Target Market: Executive two wheeler segment, second hand car user, auto rickshaw market,

middle and lower income group people.

Positioning: TATA intending to place in the mind of the consumers as a people’s car.

Strategic options: Undifferentiated marketing

Segmentation Segmentation • Segmenting means dividing a Segmenting means dividing a

heterogeneous demanding heterogeneous demanding markets into homogenous markets into homogenous groups based on similar groups based on similar characteristics or traits.characteristics or traits.

• Heterogeneous demand- Heterogeneous demand- different groups of customers different groups of customers have differing needs from have differing needs from specific products.specific products.

Segmentation Segmentation • Homogeneous segment- the Homogeneous segment- the

separation of markets into separation of markets into distinctive groups based on distinctive groups based on homogeneous characteristics.homogeneous characteristics.

Bases for Segmenting Consumer MarketsBases for Segmenting Consumer Markets

Geographic

DemographicAge, gender, family size and life cycle, or income

PsychographicSocial class, lifestyle, or personality

BehavioralOccasions, benefits, uses, or responses

Nations, states, regions or cities

TargetingTargeting

• Targeting: choose the specific Targeting: choose the specific segment toward which a firm segment toward which a firm directs its market efforts.directs its market efforts.

• Niche Marketing: the process Niche Marketing: the process of targeting a small market of targeting a small market segment with a specific, segment with a specific, specialized marketing mix.specialized marketing mix.

PositioningPositioning

• Kotler defined: “designing an offer so that it occupies a distinct and valued place in the minds of the target customer.”

Positioning of Tata NanoPositioning of Tata NanoTata nano…NANOThe ONE lakh that car drivesONE billion dreams…

The The “Lakhtakia” “Lakhtakia” CarCar

Idea GenerationIdea Generation• “I saw families riding

around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”.

RATAN TATASource:-

Business standard

PRICING STRATEGYPRICING STRATEGY

Though the one lakh price tag is not fixed by Though the one lakh price tag is not fixed by TATA group, it was the word of mouth of people TATA group, it was the word of mouth of people which fixed that range. This expectation of people which fixed that range. This expectation of people creates a big challenge for the company. To accept creates a big challenge for the company. To accept this challenge the following strategies are this challenge the following strategies are followed:-followed:-

• • Target costing methodTarget costing method• • Penetration pricingPenetration pricing• • Low pricing policy with minimum profit margin.Low pricing policy with minimum profit margin.

Promotion Promotion activitiesactivities

Enough use of one of the most important element Enough use of one of the most important element of promotion mix , of promotion mix , publicity publicity reduces the necessity reduces the necessity of other promotional devices for nano. Nano got of other promotional devices for nano. Nano got publicity in the following ways:-publicity in the following ways:-

• • Publicity as “One lakh car” by mouth to mouth.Publicity as “One lakh car” by mouth to mouth.

• • Auto expo 2008,New Delhi & GenevaAuto expo 2008,New Delhi & Geneva

• • Publicity through print & electronic mediaPublicity through print & electronic media

• • Singur violation.Singur violation.

For other type of promotional activities ,cost For other type of promotional activities ,cost factor that is 1 lakh price tag is to be keep in factor that is 1 lakh price tag is to be keep in mind, TATA is going to launch its nano mobile mind, TATA is going to launch its nano mobile for indicom user, nano watches , nano T-shirts for indicom user, nano watches , nano T-shirts available in Westside stores .available in Westside stores .

• Advertising:- TV & other mass media will be Advertising:- TV & other mass media will be less effective, thus too much money will not be less effective, thus too much money will not be invested in this regard . Mainly word of mouth invested in this regard . Mainly word of mouth advertising will get more emphasis.advertising will get more emphasis.

• Internet will be a major media for advertising.Internet will be a major media for advertising.

Online buzz:-Nano Online buzz:-Nano has gone beyond the has gone beyond the traditional methods of advertising and traditional methods of advertising and promotion online promotion online ..

Social Media communitiesSocial Media communities:-:-

Official Orkut community Members - 6,906.Official Orkut community Members - 6,906.

Official Facebook Group Fans - 4,210Official Facebook Group Fans - 4,210

Highest View Count on You Tube- 303,006 (it Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing was just under 3,00,000 when I began writing this post)this post)

`No. of Blog Posts - 61,664`No. of Blog Posts - 61,664

TATA have a blog on the official website TATA have a blog on the official website where they have been discussing quite where they have been discussing quite interesting topics and generally maintaining interesting topics and generally maintaining an active community.an active community.

Promotional activities of Alto• The MD and CEO of Maruti Suzuki is The MD and CEO of Maruti Suzuki is Mr. Shinzo Mr. Shinzo

nakanishi.nakanishi.

• The Alto was launched in September 2000, and The Alto was launched in September 2000, and customers accorded a rousing reception to the customers accorded a rousing reception to the "hottest little thing". Its popularity has continued to "hottest little thing". Its popularity has continued to grow, with customers attracted to its unmatched grow, with customers attracted to its unmatched combination of fuel efficiency, contemporary design combination of fuel efficiency, contemporary design and looks and features including Electronic Power and looks and features including Electronic Power Steering and air-conditioning. Steering and air-conditioning.

Safety features like the collapsible Safety features like the collapsible steering column and booster assisted brakes steering column and booster assisted brakes reassure customers, and add to the popularity reassure customers, and add to the popularity of the Alto. Like other Maruti Suzuki models, of the Alto. Like other Maruti Suzuki models, Alto is equipped with iCATS - a factory fitted Alto is equipped with iCATS - a factory fitted immobilizer system that prevents theft of the immobilizer system that prevents theft of the car. car.

• Besides its huge success in India, over Besides its huge success in India, over 1.5 lakh units Alto have been exported.1.5 lakh units Alto have been exported.

• Alto recorded its highest ever Alto recorded its highest ever monthly sales of 22,784 units in monthly sales of 22,784 units in November 2007. November 2007. This is the highest ever-This is the highest ever-domestic sales achieved by any car in domestic sales achieved by any car in India in a month. India in a month.

Specification Criteria of Specification Criteria of Tata Nano & Maruti Tata Nano & Maruti

Suzuki AltoSuzuki Alto

Engine ComparisonEngine Comparison• 624 cc engine624 cc engine• All aluminum, Rear Mounted, All aluminum, Rear Mounted,

Rear Wheel Drive, 2 cylinderRear Wheel Drive, 2 cylinder• Power - 33psPower - 33ps• Top speed - 105km/hTop speed - 105km/h• Gearbox – 4 speed-manual Gearbox – 4 speed-manual • Fuel capacity – 15 litFuel capacity – 15 lit• Mileage – City-20-25 kmplMileage – City-20-25 kmpl

Highway-26 kmplHighway-26 kmpl• Fuel Type : PetrolFuel Type : Petrol• Fuel Injection: Multi Point Fuel Injection: Multi Point

Fuel Injection Fuel Injection (MPFI)(MPFI)

Tata Nano EngineTata Nano Engine

Maruti Suzuki Alto EngineMaruti Suzuki Alto Engine• 796 cc engine796 cc engine• FC engine, 3 cylinder, front FC engine, 3 cylinder, front

mountedmounted• Power – 47psPower – 47ps• Top speed – 138km/hTop speed – 138km/h• Gearbox - 5 speed, all Gearbox - 5 speed, all

synchromesh, manualsynchromesh, manual • Mileage – City-15.9kmplMileage – City-15.9kmpl

Highway-23.2kmplHighway-23.2kmpl• Fuel type – PetrolFuel type – Petrol• Fuel Injection: Multi Point Fuel Injection: Multi Point

Fuel Injection Fuel Injection (MPFI)(MPFI)Alto EngineAlto Engine

Dimension ComparisonDimension Comparison• Length – 3.1metersLength – 3.1meters

• Width – 1.5 metersWidth – 1.5 meters

• Height – 1.6 metersHeight – 1.6 meters

• Wheelbase – 2230mmWheelbase – 2230mm

• Ground clearance – 180mmGround clearance – 180mm

• Seating capacity – 4 personsSeating capacity – 4 persons

• Weight – 600 kgs.Weight – 600 kgs. Tata Nano interiorsTata Nano interiors

Dimension ComparisonDimension Comparison

Length – 3.5metersLength – 3.5meters

Width – 1.5 metersWidth – 1.5 meters

Height – 1.45 metersHeight – 1.45 meters

Wheelbase – 2360mmWheelbase – 2360mm

Ground clearance – 166mmGround clearance – 166mm

Seating capacity – 5 personsSeating capacity – 5 persons

Weight – 1165 kgs.Weight – 1165 kgs.

Alto interiorsAlto interiors

Pricing Structure of Tata NanoPricing Structure of Tata Nano

Model Mumbai Delhi Chennai

Alto STD (BS3) 2.34 lakh 2.48 lakh 2.32 lakh

Alto LX (BS3) 2.66 lakh 2.82 lakh 2.64 lakh

Alto LXi (BS3) 2.84 lakh 3 lakh 2.82 lakh

Pricing Structure of AltoPricing Structure of Alto

Distribution of Tata NanoDistribution of Tata Nano

• • So far we know TATA, it’s business has So far we know TATA, it’s business has been extended to the overseas i.e. to been extended to the overseas i.e. to the Europe, Africa, U.S & Australia.the Europe, Africa, U.S & Australia.

• • Hence it has n-number of showrooms in Hence it has n-number of showrooms in India & outside of India.India & outside of India.

• • The exclusive showrooms are the best The exclusive showrooms are the best distribution channels for TATA itself.distribution channels for TATA itself.

Distribution of Distribution of Maruti AltoMaruti Alto

• Maruti Suzuki India is currently focussing Maruti Suzuki India is currently focussing its distribution network to setup stock patio its distribution network to setup stock patio in different parts of the country to reduce in different parts of the country to reduce delivery time to customers, while it looks to delivery time to customers, while it looks to boost its sales force.boost its sales force.

• Nakanishi Nakanishi said the company, along with its said the company, along with its dealers, will be increasing the strength of its dealers, will be increasing the strength of its sales force.sales force.

Nano imagesNano images

Tata Tata NanoNano

Maruti Maruti AltoAlto

Conclusion• According to the economic point of view the According to the economic point of view the

Nano is affordable for middle and lower Nano is affordable for middle and lower middle class families.middle class families.

• According to engine power and efficiency According to engine power and efficiency Alto is better preferred than Nano and is for Alto is better preferred than Nano and is for those who like efficiency and comfort. those who like efficiency and comfort.

Mr. Shinzo Mr. Shinzo Nakanishi with AltoNakanishi with Alto

Mr. Ratan Tata Mr. Ratan Tata with Nanowith Nano

Thank Thank You.You.

Thank Thank You.You.