Alternative targeting market for Zest Sedan
Discuss about the Marketing Research of Tata Motors Zest Seda for Jaguar.
Tata Motors has been known for launching huge range of cars from premium rage cars to low range cars. It had come up with few luxury range cars such as the Jaguar, Land Rover that targeted the premium customers. However, the company has experienced a loss in its market share in the past few years to the other motor companies like Hyundai Motor and Maruti Suzuki. This made the company to launch a car that can suit the needs to middle class customers as well. Thus, the company came up with a new car in the name of Zest Sedan that it wanted to target the middle-income customers (Businesstoday 2017). The paper discusses about the alterative target market for Tata Motors and defines an alternative population for the company. Further, it focuses on the sampling frame and sampling approach for the new target market for Tata Motors.
Targeting is one of the important activities of any firm before launching a new product. Before launching a product, the company first plans the target market that it wants for its product and accordingly strategizes its marketing plan and prices. The target market comprises of the customers that the company wants to sell its product. Thus targeting the customers for the product is essential before developing the marketing plan for the new product. Tata Motors has also planned to launch a new product for which it has targeted the middle-income customers as the targeted market. This is because the car is introduced as a compact and small car that is cheaper ad fuel-efficient. According to the company, this range of car will be of great demand as most of the population consists of middle class and the new car will fulfill their need and budget (Wirtz and Lovelock 2017). However, ever though the car is aimed to serve the middle-income customers the alternative target market can be high-end premium customers to some extent. This is because there are few premium customers that need small and compact cars for their home or other activities. Moreover, the tax and other price addition increase the price range above the desired amount for the middle-income customers. further most of the customers holds sedans as luxury cars and thus it can be accepted by the premium customers. This is the alternative targeting market for the company. The interior of the car is also said to have a premium feel suited to high-end customers. Alternative target market is known as one of the cheapest way the company can target a specific market or neighborhood (The Economic Times 2017). The company according to the age group, community, literacy rate and others can target various types of alternative market. The alternative target market for Tata Motors for its new Zest Sedan range is the high-income customers as they also buy low range cars for regular uses. There are also various advantages attached to the broad target market with alternative targeting strategy such as more number of target customers, high revenue, more safety and better media approach. By alternative targeting, the company will target larger market such as both the low and high range customers (Barton 2015). Increase in customer size automatically increases the revenue of the firm and the company is safe from losing the market share from other competitors. This is because their number of sales volume will increase for the company with these alternative target markets. Further Tata Motors will gain a lot in future as well with the alternative target market while launching other ranges of cars. This is because most of the customers will know the brand and the company will also be able to know the mindset of the customers while setting the price and promotional strategy of the product. Tata Motors too will gain a lot from the alternative strategy suggested for its new range of Zest sedan (Gengler and Mulvey 2017).
Alternative ways of defining population
Population in research is considered the large number of people in a region that the company targets for its products. The population is he customers that buy the product that the company is offering. Population in market research is considered as customers. The population comes under wide umbrella compared to the sample population. This is because a population is divided under a huge range that the company will sell it product. The population type is used by a brand to survey the customer before launching its products in the market (Mook et al. 2016). However, it is difficult to survey the whole population at one go because of its huge size. For this reasons companies first divide the whole population into various alternatives and from those alternatives, it further selects some sample for the survey. Tata Motors too needs to divide its market population into wide groups to survey on it. This is because survey helps to give the company a valuable insight about the about their future line of growth. Further, it will also help them to know the growth and acceptability rate they will achieve for their new product launch. The alternative ways by which Tata Motors can divide the population among various umbrellas for its new Zest Sedan are the card lovers, the high and middle-income customers and customer having less space for car parking. These are the three alternative ways the brand can divide their population of customers that will help them survey the right customers and gain back its market share (Levy and Lemeshow 2013). The first way of defining population for Tata Motors Zest Sedan launch is by car lovers. They are the first people that any car company targets for any of its products. This is because these customers have a passion for cars and love to buy new range of cars launched in the market. Thus, Tata Motors should aim these customers first to capture the market share. The next division of population will be the middle and high-income customers (Goetz et al. 2016). They are the revenue givers for the company and depending on these customers; the company decides the price of its new car launch. Lastly, the car can also be offered to the customers having less space for parking. Focusing on this part of population the company has made the car compact and suitable for these customers (Tata Motors Limited 2017).
Sample frame is the material from which the sample is drawn for the research. It consists of those people from the targeted population with the help of which the survey can be done. It is through a good sampling method the company can achieve its right target market. It is the prerequisite required by the company to carry out effective research on the topic they want. Population is considered to be the huge space whereas the sample is the compact version of the population that is easily studied for a conclusion. The sample frame formed for the research purpose of Tata Motors new car launch focuses on various traits as the population has been defined into three groups (Chao et al. 2014). Thus from the three division of population each sample is selected for carrying out the survey for each of them. As in this research it is about a new launch that is being brought about by Tata Motors through a new compact car, it is necessary for the company to know the traits of the three division of population. As it is said that the car is an entry-level car therefore the price of the car is kept at the medium range. However, the incline of the price is towards the high-end customers because of the style, the features that the brand is offering are of high range. Thus, even though the targeted market are the middle income customers looking for low range cars yet the design and class of the car in a compact way make it acceptable by rich customers as well. This makes Sedan to fulfill the desire for high-income customers as well. Further, the price of the car also increases due to addition of taxes and other additions, which makes the price of the car higher for the average income customers. On the other hand, it is seen that the entry level Zest Sedan is a fuel-efficient low maintenance car and is targeted to small families as well. Thus, the company will find its sample for doing survey for future growth under these frames.
Sampling is one of the most important activities for a firm while conducting a research on future growth. It is by forming a small group of sample the company will be able to interview the potential buyers of the new car. This is because surveying a large population is impossible as it time consuming as well as confusing. Thus, Tata Motors needs to divide the population in various ways as stated above and from each of the population segment the company needs to find a sample that will best define their purpose. Thus sampling also helps is researching various segmented portion of a market that is selected by the company. Sampling is essential, as it will initiate the research to be taken by the company and help them to reach a conclusion about the market segment they want to target the most. Further, sampling guide, this consists of all data that is required for further survey. There are some basics for further survey with the help of a sample such as sample should be appropriate to match the required research, sample should be valid and up-to-date, sample should be accurately selected from the population and research should be done accurately. Further, it should be focused that the sample should not be a biased one and it should cover all required points of the chosen population (Wood 2014). The researcher also should have a clear idea about the research it wants to pursue with the sample and should reach an unbiased result with the survey. Another feature of a sample is that it should be dependable sample and should help in explaining the survey in a better way. In this research the sample that Tata Motor choose from the three division of population should be used by the company accurately and end with a helpful unbiased result. The result of the research thus depends upon the sample approach and on the size of the sample being used for the result depending on the population used. This is because any research that depends on a niche item gives a lower inference than others do. For example, if the company is researching eighty people from all the types of population then there are great chances that around 20 percent of the sample will not respond back. Thus, the researcher for analysis and conclusion of a result will use the rest 80 percent. Sampling is thus stated to be an essential part of the research if a large number of populations are being used for the research. Tata Motors can also make their launch a successful one if they carry out extensive research on alternative target market and population. This will also help them reduce the inaccuracy that the company was going to make by targeting only a single group of market (Wells et al. 2015).
From the above discussion and analysis, it can be concluded that Tata Motors Zest Sedan has a lot of alternative target market and population in the market. The suggested alternative targeting for the company is the above average income level customers as the car has a class in its style and feature that is loved by the premium customers as well. Further, the population can be divided into three groups such as car lovers, average and above average customers and those having small parking space. For the research purpose and adequate result sampling method is chosen with a sampling approach that will make it easier for the company to research a huge population. This is because it has been stated that sampling is the best way a research can be conducted that includes huge population to be surveyed.
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