House of tata 1995 the next generation case analysis

Tata group case study pdf

Instructor: Dr. In this 21st century, the world is changing. You are on page 1of 94 Search inside document Companies undertake International Marketing for a variety of reasons. Most industry experts believe that a global appeal and a global campaign are more effective in creating the perception of value than is a series of separate national campaigns. Another important reason for placing channel decisions on the agenda of international marketing managers is the number and nature of relationships that must be managed. This company focuses upon domestic markets, domestic suppliers, and domestic competitors. Caterpillar is a good example. This policy permits subsidiary or affiliate managers to establish whatever price they feel is most desirable in their circumstances. The critical difference is one of execution and mindset. Every opting-in business would undoubtedly get the advantages of the centrally endorsed Tata brand name and of the Tata connection.

For a company with worldwide operations, the cost of preparing separate print and television ads for each market is a significant marketing expense. Of the three methods, only the geocentric approach lends itself to global competitive strategy.

tata group case study analysis

Being new and outsider Westerly tries to implement a change in sales Two or three names will keep coming up. Is demand in the international market elastic or inelastic? This strategy makes sense for an industry such as telecommunica- tions where each nation requires some adaptation of its equipment but the providing company can also standardize some of the core components.

tata group case study ppt

If the product is normally priced well above full manufacturing costs, the international marketer has the latitude to price below prevailing levels in higher-income markets and, as a result, reduces the gross margin on the product.

The marketing strategy of the stage-two company is extension; that is, products, advertising, promotion, pricing, and business practices developed for the home- country market are "extended" into markets around the world.

House of tata case study summary

Strategy 2: Product Extension-Communications Adaptation When a product fills a different need, appeals to a different segment, or serves a different function under use conditions that are the same or similar to those in the domestic market, the only adjustment that may be required is in marketing communications. Alternatively, the company must establish company-owned or franchised outlets. Their number, geographical distribution, income, shopping habits, and reaction to different selling methods all vary from country to country and therefore require different channel approaches. Introduction and Background This policy requires that the price of an item be the same around the world and that the importer absorbs freight and import duties. The second and related requirement for successful distributors or agents is that they must be successful with the product. Once these price levels have been established, the base price can be determined. Inflexible demand will allow for a higher price. You are planning to go to a Hollywood movie made in Los Angeles and then you plan to meet friends for dinner at the new McDonald's in town.

Scale and experience mean lower costs, and lower costs and higher quality are essential in serving global markets in the s.

Given limited resources and experience, companies must focus on what they do best.

House of tata case study ppt

The pure stage-one company is not conscious of its domestic orientation. To be…. This latter situation applies to the less developed part of the world, which includes roughly three-quarters of the world's population. Since these utilities can be a basic source of competitive advantage and product value, choosing a channel strategy is one of the key policy decisions, marketing management must make. The products portability creates added value for customers. Such products usually need relatively direct channels to ensure satisfactory condition at the time of customer purchase. While these generalizations apply to all countries, regardless of stage of development, individual country customs will vary. Examples of the stage- four global company are Harley Davidson and the Gap. If the market accepts the price and product, the company can then build a local manufacturing facility to further develop the identified market opportunity in a profitable way. It only adapts to add value to its offer. Selection and Care of Distributors and Agents The selection of distributors and agents in a target market is a critically important task. As was true about strategy 3, stage- three companies will also use dual adaptation regardless of whether the strategy is warranted by market conditions, preferences, function, or receptivity. And others went as much as to declare that the Tata label had not always been the reason behind their firms' achievement.

Preferably a group brand name, in contrast to an individual brand as outlined by Ratan produces a single powerful value that rewards all of the businesses Khanna et al.

And others went as much as to declare that the Tata label had not always been the reason behind their firms' achievement.

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A company pursuing this approach works on the assumption that there are unique local market factors that should be recognized in arriving at a pricing decision. Success means that they can sell the product and make money on it.

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House of Tata The Next Generation (A)