Target Market Alternatives
Tata motors, which are an automobile manufacturing company, started its journey from 1945. However, to change the organization that were sinking with passenger’s car sales due to the emerging competitions of foreign companies Tata motors came up with two new models in four years that are Sedan Zest and Hatchback bolt (Businesstoday.in 2017). They came up with small cars with various new attracting features just to grab the small car market in India where there are huge passengers for vehicle sales. This report will further discuss about the target market alternative, defining the population, sample frame and sample approach of Tata motor’s Sedan Zest
Target market includes the fragmenting the market into segments and therefore focusing the marketing efforts on more than one key segment comprising the needs and desires of those consumers who match the offerings of the product or service. For Tata motors Zest sedan, which is known as the comeback cars for Tata motors in the market, are available in both petrol and diesel forms. However, to push the diesel version it has targeted the upper middle class customers in India. However, for better sale and growth it will be better if the target the middle class customers as well. This will definitely push the customers to select the petrol vision as well. Due to the high fuel prices in India maximum of the consumers takes a step back when it comes to affording a car but this Sedan can target those middle-class customers with their petrol version. Then what they can do is to target the business families who can buy this small cars and use for their different business purposes. Many business families need cars for transporting facilities. Thus, Sedan can target those, develop their market, and gain profit. In recent times, many companies are buying cars and giving them on rent services that are highly replacing the cabs in India (Nielsen and Wilhite 2015).
Therefore, these companies can be targeted as well. However, the customers can be segmented in many other ways mainly concentrating on their needs and class of cars. Sedan can target various other customers like those customers who considers cars to be a status symbol, just married couples who need a small car just for themselves, those customers who have just started their career and want to buy an affordable car that is from their own earning. Larger families can be targeted as well who already has a big car but now needs a small car that will not take much space for parking. Lastly, those consumers who are wanting to buy a latest model with technically advanced features. Thus for them this Sedan is the best option where they are getting a stylish car with both petrol and diesel version, it is small so will not much space and the most attracting part is the different new features involving the electronic power assisted system (EPAS). Thus, in the country where consumer prefers quality cars at cheaper rates Sedan can be everyone’s first and best choice if the targeted market is revised by Tata motor (Tiwari and Herstatt 2012).
Alternative Ways of Defining the 'Population' For a Research Study
When for a research study a group is targeted then information is collected from each member who is falling in the group. However, here it is evident that this article on ‘Tata Motors unveils sedan Zest’ the targeted population is those group who are businessperson like who keeps a tract about the vehicles in the market. Then, that group of people who are interested in cars. This article clearly states the ravishing features and advantages of this car in a country where fuel price is high and people prefers to drive cheap. Thus, the alternative can be those groups of population who are sports lover like those who goes for car rallies. They can be the population who can use these for local car rallies utilizing its various features and facilities. The two versions of Sedan that is the petrol and diesel version can highly attract the car lovers who actually love to keep a tract on latest cars and have enormous knowledge about them. Apart from that, the population can also be those who are thinking for buying a car but in a dilemma because of the high fuel prices and economical conditions of the country (Thompson 2013).
However, the targeted population is never small, but it is not always possible to cover the whole of the population thus, the important part is to identify a set of population to work further that will be the representative of the entire population. While considering a particular population for research study for Zest Sedan, Tata motors must keep in mind three important features of the population that are consistency, diversity and transparency. As for this article, the clear-targeted population is the consumers who are of the business group, those who are falling in a group who are working, consumers who are interested in keeping track of gadgets and cars through magazines and online news and updates. But apart from that there are many group in the population that needs to get some attention and consideration for further future research and that population will include the rich children of upper class families who wants to buy cars, the sports lovers. The ordinary middle class consumers can also be a part of the targeted population as well as those who are not so well updated with online news and magazines. Therefore, the population must define in the above alternative ways for a research study on Zest Sedan (Tripathi, Guin and De Sadhan 2012).
Sample frame is a definite itinerary of the prerequisites that are required for the researcher to conduct a study on a topic. Population of a study is the general people who are being studied, while the sample frame is therefore a set and bound concept of everyone and everything that is related to the study (Sekaran and Bougie 2016). The sample frame that is given focuses on a number of traits of the population. As the company focuses the car to be an entry-level sedan, the price of the car is lower hence targeting people who are in the average income group with inclination towards the higher side. Sedan is known to be a car to cater to the a above average group of people, though the company says it is an entry level car the price point is on the higher side and the high interest rate in the market also makes it a car for the above average group. The car is targeted towards small families who are looking for a low maintained, fuel-efficient car. Fuel efficiency is important owing to the constantly rising fuel price (Shende 2014).
However, it must also frame those samples in the population like the ones who are slightly above the middle class people. This sampling of people can be further categorize the teachers, the youth professions and even the single parents or working woman’s who like to drive by themselves. This sampling frame can best suit the needs and demands of the consumers for whom this type of car with the above-mentioned features will be very much useful and demanding. Therefore, for a research study Tata motors first needs to define its sampling frame that are a list of unit of the interested consumers in the population. Thus, for the slightly above middle class group this car is easily affordable with last features included in it for the consumers to get easily attracted if targeted properly. For this article mainly the middle class people have been targeted keeping in mind the high fuel price and economical condition of India (Acharya et al. 2013).
Sampling is important in a research because it is impossible for the researcher to survey and interview each potential buyer of the car. A sample is a portion of a large population. Sampling in a research is done based on the market segmentation that is done. It is essential and is significant as it is an approach that will push the research forward and help the researcher reach a conclusion. A sample guide is an estimate based on the data that is taken as a sample, of a population requirement. These are some of the prerequisites of a good sample: the sample should be an appropriate representation based on the topic of research, the sample must be suitable and valid for the measurement and this validity is dependent on the accuracy of selection form the population. The sample should not be biased before starting a research or even reaching a conclusion the researcher must have a clear mind so that the sampling and the outcomes are not biased in nature. Lastly, the sample size should be adequate and dependable. The inference of a research is heavily dependent on the sample approach and sample size as the size of the population of a research based on a niche item will be lower than a popular product. In this case a minimum of 90 people have to be surveyed for the purposed of primary data collection and analysis. Out of 90 people 20% of the sample will not revert back hence; approximately 72 people are going to be analyzed by the researcher (Fowler Jr 2013).
The approach that should be taken to understand and get an insight about the new sedan launched by Tata Motors must have a definite market segmentation idea. In order to carry out the research probability methods are taken into consideration as the target market set by the company is urban people who are looking for fuel-efficient small cars. This segmentation includes a wide variety of groups of people that should be considered hence both the techniques will give a better sample size and will enhance the insights about the product (Hair 2015).
To get a better understanding about the Tata zest, all the methods of probability sampling approaches are used, which includes random sampling; systematic sampling, and stratified sampling. All three approaches are used so that the researcher can get a better understanding in identifying the diverse target market set by the company and analyzing the product’s success in the market. In this method of sampling, every member of the population has a known non-zero chances of being chosen. The approach that will have a better outcome and result to the research is the Stratified sampling approach. In this case, the market is categorized into sets and clusters based on various traits and attributes, for example: middle-income group of people and people who have a crunch of place to park the car etc. After identifying these traits within each group, a simple random probability sample is chosen. The number of the groups created will be are the strata and because the target market has set characteristics of the group this approach will be perfect to carry out a research on the Tata motors Zest sedan (Bryman 2015).
Another probability method of sampling that can be used by the researcher is the cluster sampling approach. In this method each member of the population of the study falls under only one category, for example, there are two categories middle-income group and small family, one individual will be a part of just one of the above stated group overlapping of characteristics will not be taken into consideration. A sample cluster is chosen using the random method and only individuals within the sampled clusters are studied. To modify this approach the researcher might take the cluster, which he or she may decide to be the most important for the research and not select it randomly.
Both the above stated methods of the probability approach are contrasting to each other in their process of evaluation hence providing the researcher a full view of the study from all aspect. In the first process the samples are included form all categories and characteristic traits rather than just focus on one group. As the population of the research is clear and the target market has a clear segmentation it is easy for the researcher to identify the characteristic and the groups in which the population can be segregated in. In the case of Tata Zest, research probability the better option as it assures that the sample selected is an illustration of the population. Hence improving the chances of statistical validity of the study. These sampling methods are non-complicated approach of sampling which will provide with enough data for the researcher to carry out an analysis and reach a concrete conclusion (Ritchie et al. 2013).
Acharya, A.S., Prakash, A., Saxena, P. and Nigam, A., 2013. Sampling: Why and how of it. Indian Journal of Medical Specialties, 4(2), pp.330-333.
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