Market Segments and Decision Making Proof Reading Services

Market Segments and Decision Making Proof Reading Services

Introduction

In this assignment, there is the discussion of the Tata Xenon. This is the product of the Tata Motors. This is the light commercial vehicle. This company used to manufacture the different type of automotive. This company belongs to the automobile industry.  After that different ratio are analysed in this assignment for the Tata Motors. There is the investigation of the different type of segment in which this company used to target the customers. There are the different competitors of the company that are present are analysed. After that, there is the comparison of the Tata Motors with the Isuzu Motors Ltd. in context of Light Commercial Vehicle. The strength and the weakness of both the companies are analysed. After that, there is the discussion of the primary market map for this company.

1) Industry market: -

Tata Motors was established in 1945. This is the automotive manufacturing company. This company used to produces the different type of products like passenger cars, trucks, vans, military vehicles, coaches, buses, sports construction equipment. This company also used to do vehicle leasing and vehicle servicing. This company is headquartered in Mumbai, India. This is the company of automotive industry. The automotive industry has a different variety of the operations that include design and development, manufacturing, marketing, and selling of the automotive goods that this company used to manufactures.

Current trends in: -

a) Growth

Revenue in percentage

Their revenue growth of the Tata Motors is 2.75% in the last financial year.  The three-year average revenue growth for this organisation is 4.29%. The variation in the revenue growth can be understood better with the help of the graph. By considering from the year 2012, revenue percentage was highest in this year. It became the negative value in the year 2017 (Morningstar, 2017).

Operating Income Percentage

In the ratios of the operating income, it can be analysed that this has shown an increase in the year 2014 and 2015 as compared to 2012 and 2013. In 2016 it again comes to the negative value.

Net Income Percentage

There are ups and downs in the net income from the tear 2012 to 2017 that can be better understood from the graph. 2012 and 2014 was the better year in terms of the net income for the Tata Motors (Morningstar, 2017).

EPS

Earnings per share are becoming down from the year 2014 and gradually it is becoming down form the year 2015.

b) Profitability

It is the degree to which the particular organisation yields a gain in terms of the financial perspectives. There can be the different ratios that can be understood for the profitability that is as follows:-

c) Macro environment

The macro environment covers the different factors that can be understood as: -

Political factor

When this company was formed it faced a lot of opposition from the government. The present situation shows that there is the ease of business that is provided by the government to this company that is helping this company to develop and grow. With the stability of the government, this company is able to open the new manufacturing units without the external pressure and risk from the government side.

Economic Factors

The fluctuation in the demands of the customers leads to fewer revenues and the profits from the last financial year with this company. The fluctuation in demands used to be occurring because of the competitors of this company(Best, 2012). The fluctuation in the prices and the change in the inflation also results in the low profits and the revenues for this company as compared to the last financial years.

Social factor

This is the company that is doing well for the society. This company is improving the standards of the education near the areas where this company is doing the manufacturing. This company is improving the infrastructure of the rural areas nearby places of the manufacturing plant of this company. This company is empowering the women by training them in the technical aspects of their manufacturing plants (Marketing Dawn, 2017).

Technological factors

Tata Motors is the company that has research and development department and the orifices of the same. This department brings the innovations in Tata Xenon. The innovation in the product brings a large number of the customers for this company. The innovation includes the attraction that attracts a large number of the customers for this company.

Legal factors

The advancement in the legal procedures and the easy legal producers enables this company to form the new business units in the fast way that is helpful for this company in terms of growth. The manufacturing procedures of Tata Xenon are followed according to the state laws by this company. The workplace standards are followed by this company according to the law of the state (Best, 2012).

Environmental factors

This company used to manufacture the motor engine of Tata Xenon that produces less pollution. After the production of the engine, there is the system of the quality check in which engine is checked that is manufactured to the quality standards or not. If the engine is manufactured according to the quality standards then it is sent for the assembling of the vehicle otherwise it gets improved according to the desired quality standards. The manufacturing processes of this company are such that they do not affect the environments up to some extent. The innovation in the processes is used by this company so there would be less efficient on the environment because of the manufacturing process of this company (Marketing Dawn, 2017).

2) Major market segments

The major market segment of the Tata motors is divided into three groups that are as follows: -

Low income and middle-income groups

This company used to manufacture the products that can be afforded by the low-income people of the society. This would help this company to target this section of the society. This company makes the strategies in the innovation so that the product can be manufactured in the low costs and the maximum resources. The lean manufacturing process is used by this Company for the manufacturing process.

For example, Tata Nano is the best example of a car that is manufactured to target the low-income customers. This car was the lowest priced car in the world that is manufactured by this company.

People living in cities

This company used to target the people that are living in the cities. The different marketing strategies are used to be followed by this company to target a large number of the customers that are living in the cities. There is the large poster advertisement, promotions on the TVs, internet and the radios is done to target the large number of the population that are living in the cities(Becker-Ritterspach & Bruche, 2012).

Commercial use vehicles

This company use to target the customers that are involved in the commercial use of the vehicles practices. This company used to manufacture the light commercial vehicle. So the related customers are targeted by this company for the growth and the sustainability of the organisation. Tata Xenon is the product that is manufactured by this company as a light commercial vehicle for the people that required such vehicle for their specific purpose. The bases that are operating as city buses in the different cities are manufactured by Tata Motors (Becker-Ritterspach & Bruche, 2012).

(Figure: Tata Xenon)

Primary target markets

The primary target markets are the segment in which any organisation gets the good amount of sell. This can be because of the good position of that particular organisation in the market. Another reason can be the popularity if the particular organisation in that market. Such markets can be targeted easily. These are the main builders that build the organisation in the profit direction (Baker, 2014). This makes the path that would result in the development and the growth of the organisation as the revenue can be collected in the large amount for the organisation. Tata Motors is gaining the high profits from the city population, the light commercial vehicles i.e. Tata Xenon and Low income and middle-income groups.

Secondary target markets

After targeting the primary markets, secondary markets are targeted. These are segments of the markets that are targeted when the business of the particular organisation reaches a good position in terms of the money and a great deal of energy. The targeting of this market is done to add the extra income and the profits for the company. The secondary target markets can be the agricultural based machinery that is manufactured by this company(Srivastava, et. al., 2012).

3) Primary segment and decision making

The primary target market is the main source of the income, revenues and the profit for the organisation. It is very necessary to take all the decisions based on the primary segment. The primary segment is helpful in the growth and the development of the organisation(Baker, 2014). The revenues of the organisation are collected from the primary target markets that can be used for the setting up of the new manufacturing facility for this organisation.

Example: - The xenon is the best example that is being manufactured to target a large number of customers. This is the decisions that are taken for targeting the low-income population. This is a decision that has been taken by this organisation for the primary target segmentation (Srivastava, et. al., 2012).

Example: - To target the agricultural related population this company takes the decision to make the agricultural automotive and the machinery so that profits can be earned from this sector also. This is a decision that is based on the secondary target market that has been taken by this organisation (Marketing Dawn, 2017).

4) Nature of competitions & analysis with one competitor

There are the different companies that are competitors of this company. The nature of the competition in this automotive industry is based on the technical specification of the particular automobile (Hollensen, 2015). There can be the high cc engine that can be offered by the competitor company at the same price so the customers would buy the competitors product instead of Tata competitors.

Other factors can be the average, mileage, pickup and the innovation in the vehicles on to which the competitors gain a competitive advantage on the Tata Motors.

There are the different competitors of this company that gives the tough competition to this company. These companies are Eicher Motors, Ashok Leyland, SML Isuzu, and Toyota that gives the tough competition to Tata motors (Cision, 2017).

The comparison of the Tata motors can be seen with Isuzu Motors

5) Level of involvement in competition & Positioning map of marketplace

Tata Motors is getting tough completion from the major competitors that are already present in the market. These companies have the good market share and giving the tough competition to the Tata Motors. Isuzu Motors product D-Max is the main product that gives the tough competition to Tata Xenon.

(Figure: Isuzu D-Max a product in Australia and competitor of Tata Xenon)

The primary target of the market is the low income based customers but there can be the targeting of the light commercial vehicles that would help in the development and the growth of the company(Hollensen, 2015).

The positioning of the market is being done in which the customers that are related to the business in which there is the requirement of the commercial light vehicle. This helps in the creation of the new business that can be helpful and fruitful for this organisation (Cision, 2017).

Conclusion

It can be concluded from the assignment that there is the great market share of the Tata motors in the automotive industry. The automotive industry is having the different global players. The competition in the automotive industry is based on the technical specification of the particular product that is being manufactured by the particular organisation. The Tata Motors has the good customer base at the primary market. This company used to make the strategic steps to target the secondary market. This company is facing ups and downs in the financial aspects. This company is making the decision in the way that would be helpful for this company to grow and develop in the direction that would help for the overall growth of this company.

References

Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

Becker-Ritterspach, F., & Bruche, G. (2012). Capability creation and internationalization with business group embeddedness–the case of Tata Motors in passenger cars. European Management Journal, 30(3), 232-247.

Best, R. (2012). Market-based management. Pearson Higher Ed.

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Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

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