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TATA STYLO

PRINCIPLES OF FASHION MARKETING

SUKHDEEP SINGH

SHIKHA KANDHARI

SEEMA VERMA

RUCHI SHARMA

ROHIT KUMAR SINGH

SHREYA SRIVASTAVA

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AUTOMOBILE INDUSTRY

OVERVIEW

India is the third largest manufacturer of compact cars in the world. In India there are 100 people per vehicle, 82 in China.

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COMPETITOR ANALYSIS MARKET

SHARE

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ABOUT INDIAN CAR MARKET

IT is expected that by 2030, the Indian car market will be the 3rd largest car

market across the globe.

The main encouraging factors for the success story of the car market in India are

the increase in the opportunity for new investments, the rise in the GDP rate, the

growing per capita income, massive population, and high ownership capacity.

Initially the most popular car model dominating the Car Market in India was the

Ambassador, which however today gave way to numerous new models like Maruti,

Fiat, Hyundai, BMW, and many others.

The future of Indian Automobile market is bright as it looks forward to

manufacturing and implementing new innovations .

Small cars are launched, keeping in view the financial standards of the majority of

Indian citizens.

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KEY ISSUES IN PROCESS OF

GROWTH Customer care, and not just 'service' .

Domestic as well as multinational investments

Searing through cut-throat competition Almost all brands in the world available

Road safety Lacking the basic amenities.

Anti-pollution norms affect the exports as the norms are stringent in foreign

countries.

Coordination with the government to enable advancement

Used vehicle trade in initial phases but does not enjoy the market like in

European countries.

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COMPETITOR ANALYSIS COMPACT

CAR MARKET

MARUTI SUZUKI 800 - For years Maruti 800 has remained the right opening car

for people who look for low cost of ownership and fuel efficiency.

CHEVROLET SPARK - The spark is contemporary and appealing. It offers better

fuel efficiency and low cost of service and extended warranty. The spark is

exceedingly refined but the pricing is little higher than its rivals. MARUTI SUZUKI ALTO - 796 cc engine similar to the Maruti 800 but a little

refined. It has a 5 speed gearbox and higher build quality.

HYUNDAI SANTRO - The santro has a tall boy design and is equipped with eRLX

engine that is a 1.1 litre sized engine. The car is easy to drive and agile but lacks in

the safety parameter TATA INDICA - It is a good looking and spacious family hatchback but is fighting

for a image in the Indian markets. Designed by the Pininfarina Corp.. The same

company that designed the cars for Ferrari.

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COMPANY PROFILE

Tata Motors Limited, earlier known as TELCO (TATA Engineering andLocomotive Company) is headquartered in Mumbai, India.

It Is India's largest passenger automobile and commercial vehiclemanufacturing company.

The OICA ranked it as the world's 20th largest automaker.

Tata has developed Tata Ace, India's first indigenous lightcommercial vehicle, Tata Safari, India's first sports utility vehicle, TataIndica, India's first indigenously manufactured passenger car, andthe Nano, the world's cheapest car.

Tata Motors has over 1,400 engineers and scientists in six R&Dcentres in India, South Korea, Spain and the UK.

Its vehicles are exported to Europe, Africa, the Middle East, Southand Southeast Asia and South America.

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IDEA BEHIND THE PRODUCT

Towns and cities offer a vast array of amenities. But whats the use of havingcountless shops, restaurants and cafs, if you cant find anywhere to park nearby?

The idea behind the STYLO is to create a vehicle easy to park and short enough to

allow "nose-in" parking.

Small size allow two STYLO to park in the space as one mid sized luxury car.

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IDEA BEHIND THE PRODUCT

The STYLO would be the most fuel-efficient petrol-engined car for sale in India.

The raised seat position will offer a clearer overall view of the traffic situation.

Apart from the added comfort, the STYLO also provides for more flexible and

agile motoring in towns and cities.

The particularly light bodypanels contribute to an excellent power/weight ratio,

resulting in improved performance and reduced fuel consumption.

The low fuel consumption is kind not only on wallet but on the environment too.

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FEATURES

The engine: With a capacity of less than one litre, the engine is extremely

compact and space-saving. The compact 3-cylinder in-line engine is with a

capacity of 800 cc. Low on consumption, high on performance.

The transmission: The newly developed automated manual 4-speed

transmission provides for faster gear shifting, free of any delays. The STYLO

will also offer user-friendly option in the form of the automatic gear

programme which does away with the need to use a clutch pedal. This is

particularly convenient in town and city traffic.

Safety: Protection is also provided in the event of a head-on collision by belttensioners and belt-force limiters. Collapsible steering column and dual impact

side bars add more safety. Deformable, high quality plastics are cushioned

with thick foam to absorb impact energy and minimise risk of injury.

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FEATURES

InteriorRear Passenger seat backrest can be folded right down for storage.

Storage compartments on front doors.

Coin holder

Interior lighting

Make-up mirror in passenger sun visor

Exterior

Body panels in deep black or body colour

Side indicators Door mirror caps in body colour

Third brake light

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STANDARD EQUIPMENT

Safety

Safety seats with integral seat belts Seat belts with belt tensioners and belt force limiters.

Dual Side-double impact beams to absorb impact.

Drive lock automatic door locking when the vehicle is in motion

Functional equipment

Automated / manual 5-speed transmission

Central locking with radio remote control and immobiliser.

multi-functional display (fuel gauge, coolant display, reserve indicator, service interval

indicator, trip recorder, clock)

Exterior temperature indicator

Rear window wiper with interval wiping and automatic wipe/wash function (coup)

Electrical equipment

Headlamp range adjustment (manual)

3-button key Tank cap integrated in the central locking system

12 volt socket

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VARIANTS

Pure

Solid roof

Manual window winders

3 - spoke steering wheel

Steel wheels (15") with front tyres:155/60 R 15;

Rear tyres: 175/55 R 15

Door mirror caps & radiator grille inblack

Colour of upholstery: Plain grey

Contrast components in the colour:Plain grey

Fabric elements on instrument panel;

In car clock.

Pulse

Solid roof

Softip manual gear shifting (shiftlever).

Air conditioning manual.

Electric windows

3-spoke steering wheel

Steel wheels (15") with stylishwheelcaps, front: 175/55 R 15; rear:195/50 R 15

Dashboard instruments (cockpit clockand rev counter)

Front fog lights

Body coloured rear view mirrors

Colour of upholstery: Black Contrast components in the colour:Pearl grey

Fabric elements on instrument panel,door trim and knee pad; colour-coordinated with upholstery

Passion

Solid roof

Softouch automatic gearprogramme

Air conditioning manual + dust filter

Electric windows

3-spoke sports leather steering wheeland leather gear knob

12-spoke alloy wheels (15") withfront tyres: 155/60 R 15; rear tyres:175/55 R 15

Front fog Lights

Body coloured rear view mirrors

Colour of upholstery: Design black,design red or design beige Contrastcomponents in the colours: Pearl grey,pearl red or pearl beige; colour-coordinated with upholstery

Fabric elements on instrument panel,door trim and knee pad; colour-coordinated with upholstery.

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WARRANTY / SERVICING

The manufacturers warranty without mileage restrictions from Tata Motors will

offer a comprehensive scope of protection which a customer can additionally

extend with the service packages to meet their individual needs.

2-year warranty without mileage restrictions.

Short stays at the workshop, low maintenance and repair costs, modern service

intervals and a low insurance rating mean extremely low running costs for a

STYLO.

STYLO service covers all your servicing costs, including the oil changes and, TILLyour car reaches 3 years old.

The On road Assistance service provides free breakdown assistance in

emergencies. The service will be offered around the clock and for the whole

duration of the 2-year manufacturers warranty.

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MARKET SEGMENTATION Market segmentation is defined as the division of a particular market into differentsegments or sub markets according to different factors

Here the primary segmentation is based on the price of the car and also the nature of thecar. So we have - A segment, B segment, D segment etc and segments like MUV, SUV,Sedan, Hatchback, small car etc.

The market segmentation for the STYLO will be based on several factors. Special Interests The current offerings in the target price range do not offer

different features like a/c or power windows or alloy wheels. The target marketcomprises of consumer who is looking for some extra package in the similar pricerange.

Age - In this case, the age group that is being targeted is 25-40.

Financial Strength the consumer afford a vehicle in the said price range. Thereforefinancial ability and affordability is also a mode of segmenting the market.

Functional - The vehicle serves the function of providing the customers best in entry

segment mode of transportation. Need for quality, durability, etc perceived need for quality can be another methodof segmenting the markets as time and again consumers have shown interest inslightly upmarket cars even if they are able to afford entry level priced vehicles.

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TARGET MARKET

Target market is chosen after the segmentation of the markets. Most companiesrealize that they cannot effectively serve all the segments in a market, and mustinstead target their marketing efforts.

Focus is on mass marketing where we will do mass production, mass promotionof the Tata STYLO in about the same way to all the consumers.

The target market is the huge middle class population to a tune of 300 MnIndians with about 70 Mn house holds, who are waiting to go for a car that offersdesign, economy and style keeping in mind the affordability.

The following criteria has been used to select the markets

Measurable the size, the purchasing power and the characteristics of the segment can beeasily measured.

Substantial these segments are large and profitable enough to serve.

Accessible these segments have access to all the possible media like T.V. and the internetand can be accessed through promotional campaigns.

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PRODUCT POSITIONING

Product positioning is the act of designing the companys offering and image to occupy a

distinctive place in the mind of the target market.

A products position is the complex set of perceptions, impressions and feelings thatconsumers have for the product compared with or without the help of marketers.

Tata, while offering its STYLO should categorize itself with the low cost, entry level carslike Maruti Suzuki 800, Maruti Suzuki Alto, Chevrolet Spark etc.

High on features, fuel-efficient car.

STYLO is a smart automobile designed by Tata to be affordable to millions who commuteon 2-wheelers or some basic no frill entry level car carrying a family of 4, but at the sametime need features and options.

Tata STYLO should be perceived a similarly priced model as Maruti Suzuki 800 and theAlto. That advantage and the value with Tata is that low price and superior design can beachieved without compromising on the quality as the Tata in-house design team is nowcapable of bringing new designs at a cheaper in the markets.

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THE PRODUCT

The Tata STYLO is a city car a small, affordable, rear-engined, four-passenger car

aimed primarily at the Indian market.

For the car an engine, a suspension system, and a steering system have specifically been

designed for its size.

The car will be launched in 3 variants - standard, deluxe and luxury versions.

Its mono-volume design, with wheels at the corners and the powertrain at the rear,

enables it to uniquely combine both space and manoeuvrability, which will set a new

benchmark among small cars.

Higher versions will have the comforts of power steering, power windows, air-

conditioning and much more.

Tubeless tyres further enhance safety. It exceeds current regulatory requirements with a

strong passenger compartment, crumple zones, intrusion resistant doors, seat belts &

strong seats.

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PRODUCT PRICING

Penetration pricing will help Tata Motors to get hold of the sales of most of the

Maruti-Suzuki entry level cars and also the base models offered by Hyundai

(Santro) and Chevrolet (spark).

The conditions that favour the decision to go for penetration pricing

The Middle class in our country is extremely price sensitive.

A low price with lots of features will discourage the competitors.

Production and distribution costs will fall with time and numbers.

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PRODUCT PROMOTION

The current offering in the entry level segment by TATA is Tata Indica which comes in

different engine and price potions is the only diesel engine car available in the class.

The current offering, i.e. Tata STYLO will cater to the needs of middle class families needs

to be the promotional objective and Tata should make sure that the vehicle offered is

able to build a right image in the minds of the customers.

Promotion Objective

The advertising has to create the perception in the car owners mind that Tata STYLO, which is

meant for the middle class and the most fuel efficient vehicle Indian Markets have ever seen

Being a High-involvement product, car owners make their purchase decisions by themselves.

the purchase decisions will be taken jointly by all the members of the family.

It is specifically designed to suit Indian conditions and has good suspension systems and

safety features also needs to be communicated, because generally with nightmarish tales of

deplorable roads and unending, undisciplined traffic

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MODES OF PROMOTION

T.V. Advertisements The T.V. advertisements will show the

product and not any celebrity as the product is value product and

does not need any external support to be sold.

Hoardings and Displays The Companys media wing will but

exclusive spaces on city roads where billboards and hoardings will bedisplayed. These will catch the attention of the consumers.

Print Advertisements print ads showing features and price will

be printed in all the leading dailies and weeklies in order to get themaximum exposure.

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PLACE

Channels of distribution the existing distribution channels and the dealers of TATA

would be utilized for promoting, selling and providing after sales support services. Thiswould give the company economies of scale and help in keeping the costs at a low level.

Manufacturing facility - Tata Motors' plants are located at Jamshedpur (eastern India),

Pune (west), and Lucknow and Pantnagar (north). Tata Motors and Fiat have set up a

common manufacturing facility at Ranjangaon, near Pune.

Locations The strategy is to first create a position in the metros and then reach the

Tier-II and other cities. TATA would even try to create a position in the rural sector in the

future after testing the product for acceptance in urban and Semi-urban areas. Economies

of scale would also help it in percolating the market in an ameliorate fashion.

Transport a major advantage for TATA is that it can utilize its present system of

transportation for the new offering i.e. STYLO. Even this would help TATA in keeping cost

for the new car low and would also help in achieving economies of scale.

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BIBLIOGRAPHY

www,automobileindia.com

www.autocarindia.com

www.tatamotors.com

www.google.com

www.wikipedia.com

BBC TOPGEAR volume 3, Issue 2, November 2007

Autocar India January 2008 ISSUE

Nift Resource Centre