HC2022 Market Research and Consultancy | Tata Motors Limited

‘Tata Motors unveils new Zest sedan’

The outputs of this assignment will be:

• A discussion of the target market alternatives for the Zest sedan.
  
  
• A discussion of the alternative ways of defining the ‘Population’ for a research study on the Zest sedan.
  
  
• A discussion of the alternative ways of defining the ‘Sampling Frame’ for the research on the Zest sedan.
  
  
• A discussion of the alternative ways of defining the sampling approach for the research on the Zest sedan.
  
  
• Explain why the approach expressed in the earlier sections will deliver an effective research outcome.

Introduction

Tata Motors Limited which was known as TELCO is an Indian multinational company that excels in manufacturing and is one of the members of TATA Group. They manufacture products such as sports cars, passenger cars, vans, trucks, buses, coaches, military vehicles and construction equipment. This company was founded in the year 1945 and their market is spread worldwide. They also provide services such as automotive design, engineering and outsourcing services apart from the goods mentioned above (Business 2016). Their manufacturing and assembly plants is not only present in India but also in Argentina, Thailand, Great Britain and South Africa. Even the research centers are located in Spain, Great Britain and South Korea along with India. Their main subsidiaries have purchased the English supreme car maker Jaguar Land Rover and the South Korean manufacturer of commercial vehicle TATA Daewoo. They also have different joint enterprises such as bus manufacturing with Marco polo S.A., construction equipment with Hitachi and automotive components with Fiat Chrysler. They had manufactured their first commercial vehicle in 1954 by collaborating with Daimler Benz AG but it was finished in 1969. TATA penetrated the passenger vehicle market in 1991 by introducing TATA Sierra. They became the first Indian company to launch a competitive indigenous automobile.

Target market alternatives

style="text-align: justify;">The Zest is a compact and comfortable car that has been manufactured keeping in mind the present and the future market in mind (Chatterjee 2015). It is a new model which possess a fresh look which can be attributed for the family and also has some interest applications suitable for the young generation. The LED daytime running lights is absolutely perfect for the target audience. The voice- controls of the car is really unique and created after testing the dialects of 70 individuals. This will attempt to target the audience of different areas and regions. The attempt of the company to make the journey of passengers’ safe along with comfort will be appealing to all kind of customers who will have income range to afford the car.

Recommendation- four speakers and four tweeters in the car for a surround sound experience is best recommended for today’s youth who lives for the music. This car will easily make way into their life by providing the opportunities that they always look for (Chia 2014).

Defining the population

For the research study of Zest Sedan, if the population needs to be defined then that will include the people of those areas where it is launched. The price range of the car starts from 5.21 lakhs at 17.57 km/l. Therefore, the population whose income ranges in this group will be able to afford this new member of the TATA family. As the company is situated at more than one location therefore the natives of all those places will be counted in the population for the research study. Then the large population group will be classified according to the age, gender, income range and needs of the customers. The customers will also be sorted according to their choice of specifications of the car (Chu and Guo 2015).

Recommendation- As the TATA company is based in India therefore the prime attraction will be the Indian population. The sorting will be done as in among the Indian population who are the potential customers who can purchase the car. There will be different choices on the part of the customers. A market research on the population of the area will be able to measure the buying decision, purchasing behavior, choices of the product and preferences of the customer. This classification will be helpful for the researchers to draw a picture of the sale of the product.

Sampling frame

Sampling frame is referred to as the source material of a given area from which the required amount of sample population is taken into consideration. In the given scenario of Zest Sedan, the alternatives of sampling frame can be the population classification can be according to their age, another according to the gender, the other according to the buying pattern and the other according to preference of the product. The sampling frame can also be based on the customers’ previous purchasing pattern which will hint at their recent buying behavior (Dawar and Arora 2016). This market survey will help the TATA company to get an idea about the sale and profit of their new product. The same process will be followed in all the region wherever Zest will be launched. The sample selected for the research will further be surveyed on the basis of primary and secondary data. Following this procedure will help the researcher to understand the market in a better way and also the lifetime of their product.   

Recommendation- It can be recommended that the sampling frame should be chosen as per the income range of the population. Affordability is the most important factor when it comes to buying a product. This is because choice, preference, age, gender will not matter when the individual cannot pay the necessary money for the product. So, the company will have to target the population by keeping in mind their annual income range (Gupta 2017). Although the EMI system is applicable for purchasing the product but it should be taken into consideration that the individual must be sufficient enough to pay the EMI at the given time. Thus, there will be a sorted sampling frame for Zest Sedan which will only be targeted towards the chosen population.

Sampling approach

Sampling approach or methods are categorized as either probability or non- probability. In probability sampling, every member in the sampling frame has indefinite chance of being selected. Random sampling, systematic sampling, and stratified sampling fall under the approach of probability sampling. Non- probability sampling is suitable for statistical quantitative research because there arise some questions in the assertions. Accidental, snowball, purposive, deviant and others fall under the category of non- probability sampling. According to the researchers, probability approach of sampling is appropriate for large scale studies and surveys which include representativeness but non- probability approaches are more appropriate for detailed qualitative research (Hensher, Ho and Beck 2017). For the survey of Zest both the approaches of sampling are some way or the other required to derive a finding. Both probability and non- probability sampling will be applicable to seek findings about the sampling frame for TATA company’s new product.

Recommendation- It is recommended to use probability approach of sampling to conduct a research on Zest. This is because this is a research based on a large- scale study and requires representativeness. The study of the population for the sale of Zest needs to be minutely done. There is not so much importance of theoretical saturation or generalization of analytical data but statistical generalization is required (Karosiya and Shukla 2017). This given case study is not appropriate for non- probability sampling because it gives rise to certain doubts, queries and questions. The TATA company will only find out in details about the purchasing power and the buying behavior of the target customers in their specific market where they want to launch the product. Probability sampling is best suited for this survey of TATA motors’ Zest as it will take into consideration the random sampling frame and draw the data accordingly.

Effectiveness of the selected approach

Sampling is referred to as the data that is beneficial in drawing conclusion by analyzing the data from selected items of the total population. For instance, in the given scenario, a sampling frame was selected from the whole population (Ng et al. 2016). Then the selected sampling was done according to specific criteria such as age, gender, preference, choice, selection, buying decision and purchasing behavior. According to these criteria, the sample were surveyed by the process of random sampling. The sample of the population were surveyed at a random basis to find out the require outcome. It helped the researcher to gauge the sale or the challenge that the company might experience after the new product will be launched in the market.

In probability sampling each item in the population carries a balanced chance of getting selected. It is assured that all the item has at least a single chance of getting selected (Planet and Radisson Blu Plaza 2017). Probability sampling is more effective because it uses a minimum reliance over the judgement of human beings and thus there is no scope of biasness. There is a list of advantages behind the reason of selecting probability sampling for this research. It is a cost- effective process as the study of selection of the items is done that completes half of the work. It not only saves money but also time. There is no limitation of selecting samples in this process. When the study of the sample is conducted, the researcher has a random trend that makes the process of probability sampling more effective and accurate. It does not involve any complex and long duration process therefore sampling can be done easily with efficiency. It is such an easy process that any person can do this if he is given a brief idea on the background.  Probability sampling used random numbers while surveying for Zest which assures that the selected sample can vary just like the population (Nielsen and Wilhite 2015).

Conclusion

From this assignment on Zest Sedan of TATA Motors Company it can be concluded that not all the sample that is selected for simple random sampling will provide necessary to permit the researcher to make proper estimates and derive correct and appropriate inference. This is because the sample size can vary just like the total population. The primary step involved in working with the survey data of Zest is to understand the sampling design. There are certain ideas and concepts which needs general apprehension for defining the sample in order to deliver an appropriate context for analyzing estimates and deriving interferences. The sampling unit of the study of Zest Sedan is the most important to be included in the sample of the probability random sampling. This unit has referred to the person who were selected as the target customer based on the specific criteria given throughout the assignment. The sampling units need to be put into proper frame and context in order to get the desired outcome.

References

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Chatterjee, A., 2015. A study of consumer behaviour towards premium passenger car segment in Uttar Pradesh in post liberalization era a case study of Kaval Towns.

Chia, R., 2014. Reflections on the distinctiveness of European management scholarship. European Management Journal, 32(5), pp.683-688.

Chu, T.H. and Guo, Y.S., 2015. The Relationships among Service Quality, Relationship Quality and Customer Satisfaction in Automobile Maintenance Services. 

Dawar, D. and Arora, S., 2016. Event Study on Stock Prices of Tata Motors-A Study on Launch of Zest. Wealth: International Journal of Money, Banking & Finance, 5(1). 

Gupta, P., 2017. ANALYSIS ON TWITTER DATA OF AUTOMOBILE DOMAIN USING ONTOLOGY. International Education and Research Journal, 3(5).

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Karosiya, A. and Shukla, V., 2017. A Survey on Automobile Registration Number Retrieval System Using Novel Partitioning Method.

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