- Key product development opportunities for Tata Motors
Project development opportunity is the process of identifying a want and bringing a new product to the market. The marketing capability of a company is positively associated with new product development performance. The launch of Zest, Tiago, and Hexa, their design, finish and the quality made the company record higher sales volume (MADHAVAN, 2017). Tata Nano was a big blow to the company that saw the company saw the company face low capital utilization. The poor performance of Nano made the company lay down capacity rump-up plans to develop new products.
Also, the introduction of TAMO that is meant to act as an incubator and act like a start-up in providing groundbreaking mobility solutions will bring new technology to the market of the automobile in India. The product will be offered in three models, as road-based Racemo, a track-ready Racemo and electric-Racemo EV Madhavan, (2017).
According to (Tata Motors press release in January 2020), new product portfolio the company planned to introduce all of its new BSVI range of products. The company plans to bring new generation products in the market through its range of products; it aims to design and develop an enhanced proposition for its aspiring customers. Also, the company plans to offer the safest variety of vehicle to set new industry standards.
To increase its existing and new product market, Tata Motors will design an interactive and engaging digital interface that will provide visiting customers with an exciting experience. The bringing of new product is meant to expand the company’s market to exiting the market in India (Pareek, 2018). The aim was to move from its 70% range of products to a 90% share in the market. Also, the company plans to back electric mobility, and have most of the products have an electronic solution in the future.
Tata plans to bring new products that target GenNext customers in India, UK, US, Italy and South Korea. At the same time, it continues to enjoy market dominance in other areas of the world. These new products are meant to bring back customer loyalty that was affected by the failed Nano model.
However, for the company to successfully develop and market a new product, it needs to have proper innovative sustainability and a well-planned product development process. The product should undergo certain stages for it to be successful.
3.1 Key theory and models relating to new product design and development
There are several theories that a business can use to determine the demand and needs of customers. With the high global competition in the automotive industry, companies should be concerned with meeting customer needs. Companies should design products that meet customer demands. For the business to understand customer needs, a business can use any of the new product development theories and modules. One of the models that promote innovation during product development is a product-service system (PSS), model. With this model, a company can integrate its new product with the services. Integrating product systems, services, the network of players, and supporting the infrastructure enables the company to provide customer needs and makes the company have less environmental impacts.
Also, integrating PSS with product life-cycle could enhance long term profitability (Kwon et al. 2019). Though PSS is believed to be most applicable in manufacturing, most manufacturers don’t deliver PSS because of the poor definition of customer wants and service portfolio. Nano product development failed because the company could not the customer need for a low priced car with the services provided the product. However, planning with a sound business model is crucial for the successful employment of PSS.
The business model plays a significant role in overcoming the firm’s challenges and preparing for future instability in the industry. With the employment of proper business models, Tata motors can develop a new product or modify Nano that will enable the company to grow.