Business Memo

TO: Tata Motor

FROM: Frank Wu, Marketing Analyst

SUBJECT: Proposal for New Advertising Strategies

DATE: March 8, 2013

BACKGROUND

According to market research, the target group for Tata Motor’s Nano model in the United States is different from its target group in the domestic country. As the target group is different, the advertising strategies for Nano model entering the United States’ market need to be changed.

PROPOSAL

The survey results show that Tata Nano’s target market is mainly lower-income urban population and young adults in the United States. To effectively promote the product, we suggest using different advertising strategy for these two major target customer groups.

TARGETING LOWER-INCOME BUYERS

* Television advertisements

According to surveys, 80% of our targeted lower-income families spend eight hours or more watching television shows per week. Also, findings from surveys show that 65% of target customers prefer to watch reality shows rather than non-reality shows. Shifting advertising budget to television advertisements will help Tata Motor with promoting the product effectively. The cost estimated for this strategy will be around $5,000,000.

* Public transportation advertisements

Tata Motor should promote the Nano model through transit advertising. Transit advertising has the potential to reach a broad cross-section of consumers. According to research, a person is exposed to at least ten transit advertisements during the morning commute. The transit advertising strategies we suggested would be advertisement placed at bus stops, and advertisement placed on the interiors or exteriors of buses. This normally costs $4,000 to $5,000 per month per advertisement.

TARGETING YOUNG ADULTS

* Social Media

Internet advertising has the great opportunity to engage with young adults. According to research, over a third of young adults watch online advertisement, with a similar proportion watching videos or articles demonstrating...