Tata enter Indonesian market

INTERNATIONAL MARKETING

Table of content:
1.0 Introduction 2
2.0 Market selection 3
2.1 Political factors 3
2.2 Economic factors 4
2.3 Social factors 6
2.4 Technological factors 7
3.0 Market competiton 8
3.2 Competitive strenght 11
4.0 Strategies in market of Indonesia 14
4.1 Entry Model 14
4.2 Positioning and Segmentation 16
4.3 Marketing Mix Strategies 17
5.0 Conclusion 19
6.0 References: 20

1.0 Introduction
Tata group was built in India by Jamsetji Tata at 1868. The Tata group operates more than one hundred subsidiaries in worldwide. Tata group set up Tata Motor for the purpose of entering car manufacturing industry at 1998. Besides, Tata Motor launched Tata Nano in 2009 (Tata, 2014).

Tata Nana was known as the cheapest car around the world. Tata Motor produces Nano for the market of lower - and - middle - income segments in India. Nano is just sold for about 2,500 dollars. Thus, it is not only the lowest price in domestic market in India, but also the most competitive price in worldwide car industry (CNN, 2009). However, the sale volume of Tata Nano had a unsatisfactory performance that could not meet the objective of Tata Group (Kannan, 2012).

Thus, the main purpose of this paper is to select and evaluate appropriate Indonesia’s market through business environment and competitors analysis for Tata Nano. Besides, main competitors and potential customer in the market of Indonesia will be also identified in order to improve Tata Nano’s performance.

2.0 Market selection
PEST framework is one of environment frameworks which grouped macro environment elements into key types. The PEST framework identifies four environment factors in particular: technological factors, social factors, economic factors and political factors. Johnson and Whittington (2011) state that PEST analysis model provides the overall information which to identify key driven changes in the future that might influence on decision making of a organization.

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