Market Segmentation, Positioning, Targeting: A case of Tata Nano in India EXECUTIVE SUMMARY: Targeting and positioning strategy of Tata Nano and recommendations for the company are given. INTRODUCTION:
According to Howard and Sheth (1969, p. 70), “market segmentation depends on the idea that the company should segment or divide the market in such a way as to achieve sets of buyers” Historically sellers were engaged in mass marketing. They were into the mass production, mass promotion and mass distribution of one product to all consumers in order to obtain economies of scale. This approach of marketing segmentation made the producers to compete against their competitors in terms of products and services. Kotler says “the product differentiation is to provide variety to the buyers rather than to appeal to different segments”. DISCUSSION:
CRITICISM OF MARKETING SEGMENTATION:
When the size of the market is so small to do marketing When a brand is a dominant brand in the market.
When more number of people falls in the same category. Most of the brands do not operate within the same segment. Certain brands cannot fit into a particular segment which is a drawback to this strategy. In very small businesses and brands this strategy will not work and it is not possible. CASE OF TATA NANO IN INDIA AND ITS MARKET SEGMENTATION: Tata Motors is the leading automobile manufacturer in India with a huge portfolio which includes trucks, passenger cars, buses, and utility vehicles. Even though there are many products from Tata Motors an interesting case of Tata Nano is discussed further. Generally Tata Motors follow the marketing segmentation concept and they have succeeded which already prevails in the history. Tata Nano which comes under the passenger car segment was launched in January 2008. India’s passenger car segment has been grown extraordinarily...