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The ONE lakh Car that drives ONE billion Dreams…
TATA NANO
SWOT ANALYSIS OF TATA NANO
IDEA GENERATION
“I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”.
RATAN TATA
source:- Business standard
TARGET MARKET
Lower and Middle Class Families
ECONOMIC FACTOR OF NANO OPPORTUNITY• The car itself is expected to boost the Indian Economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65%.
• Per Capita income Rs. 38000 (2008) from Rs. 1000 (2002) induces a higher purchasing power.
• The Nano's low purchase and running cost, the more its demand will be for the markets into which it will be introduced, the more it will be bought.
• Nano is sure to cut into bigger car companies' sales in India and other developing markets.• Generally companies target only the 10% rich population of the country but Nano has target a 72% of the population wh o are lower class and middle class level.
THREAT• Increase in the Steel price Increases the cost
Domestic market share in 2006-07
Two WheelerCommercial vehicle Passenger Ve-hicleThree Wheeler
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08E
2008-09E
2009-10E
2010-11E
2011-12E
0
10000
20000
30000
40000
50000
60000
70000
Rapid expansion in addressable households
Rapid expansion in addressable households
Source: Crisil Report, 2008
POLITICAL INFLUENCE ON TATA NANO
THREAT• Political controversy may difficult to stick
on 1 lakh price
• Farmer escalate the protest in singur.
• Block roads across the Singur on Aug.29 for demand the return of 400 acres land.
CONTINUE
OPPORTUNITY• Gujarat government said that 1,000 acres of land
would be given to the Tata Motors.
• Tata Motors will produce 2.5 lakh cars annually in Gujarat; the capacity can go up to 5 lakh cars per annum.
• A loan of Rs. 9750 Crore & that too at an amazingly soft at 0.1% simple rate of interest.
• Repayment of this loan @ 0.1% over 20 years.
• They got 100% exemption on electricity duty.
TECHNOLOGY IN TATA NANO
OPPORTUNITY• The project to create the world's cheapest car. • Inspired by the number of Indian families with two-wheeled
rather than four-wheeled transport.• In fact, Tata envisions going even further, providing the tools for
local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers.
• Significantly cheaper than existing Technology.• Has greater functionality and• Is more convenient to Use.• Brings to market a totally different Value proposition than the
one available and can change the Paradigm about a product.
COMPETITORS OF TATA NANO
OPPORTUNITY• Till now, It is the only low cost first car which is
Launched.
THREAT• Mahindra launhes Renult Yuni cost Rs. 130000.• Bajaj Auto, the country's second biggest two-
wheeler maker, comes after 4 year.• Other Indirect Competitors are Two Wheeler
and Second hand Vehicle market.
Porters five force model of NANO Car
Suppliers: Bosch, Caparo, Continental,Delphi, Denso, Fag, Ficosa,
Freudenburg, GKN, Saint Gobain, Johnson
Controls, INA
Customer
New Enterant: Mahindra Renult Yuni
Sibling rivals: Second hand Cars, Maruti 800
Substitute: Auto rickshaw, Two Wheelers
CONSUMER CHOICE DECISION
OPPORTUNITY It is the Cheapest car in the world.Because of its stylish and its price look more number of
people will shift toward Tata nano than a Maruti 800.
THREAT Nano is made only to ride in the city and only four
people can sit the car.
GRAPH SHOWING THE CONSUMER WILL PURCHASE
THE NANO OR NOT
Source: Crisil Report, 2008
LEGAL FACTORS
STRENGTH• Exceeds Indian regulatory requirements and can meet
strict Euro IV emission standards.
• In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currently.
PRODUCT FEATURES
Length 3.1 metres
Width 1.5 metres
Height 1.6 meters
Engine All-aluminium, Rear Mounted, Rear Wheel Drive
Capacity 623 cc
Power 33 PS
Fuel Injection Multi Point Fuel Injection (MPFI)
Fuel Type Petrol, Diesel Version will be later
Body Type Sheet Metal
Seating Capacity 04 (Four)
Mileage
20-22 Kmpl (City drive)
26 Kmpl (Highways)
Top Speed 75 K.M
Emission Norms Euro-IV, Bharat Stage-III compliant
Safety Norms Frontal Crash Tested
Versions One Standard and Two Deluxe
• The Tata Nano uses plastics and adhesives rather than welding.
• partially using inexpensive polymers or biodegradable plastics instead of a full metal-body. • Engine Capacity Bosch 624 c.c. twin cylinder.
• Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft.
• Superb control over emission and smooth acceleration.
• Less length but more inner cabin space due to height and Comfortable leg room.
• Single Wiper in place of two.
• Tube less Tyres.
• Elegant to look at and can be used both in Left Hand & Right hand version.
ddd Nano CX Nano LX Maruti 800 Std
Maruti 800 AC Alto Alto LX Alto Lxi Santro
Non-AC Santro GL Santro GLS
Airconditioner - - -
Heater - - -
Front Power Windows - - - - - - - -
Central Locking - - - - - - - -
Body Colored Bumpers - - - - - - - -
Body Colored Door Handles & ORVM - - - - - - - - -
Front & Rear Fog Lamps - - - - - - - - -
Tinted Glasses - - -
Digital Fuel Gauge* - - - - - - - -
Tubeless Tyres* - - - - - - - -
* Features available in all three versions of Nano
COMPARISON OF SMALL CAR
PRICE FACTORSTRENGTH• Tata initially targeted the vehicle as "the least expensive production car in the world" — aiming for a starting price of 100,000 rupees or approximately $2000 US despite rapidly rising material prices.
• As of August 2008, material costs have risen from 13% to 23% over the car’s development,and Tata now faces the choice of:introducing the car with an artificially low price through govt subsidies and tax-breaks, or foregoing profit on the car, or using vertical-integration, or partially using inexpensive polymers or biodegradable plastics instead of a full metal-body, or raising the price of the car.
WEAKNESS• An increased price on the Nano will likely decrease demand.
Cars Nano Maruti 800
Chevrolet Spark
Maruti Alto
Hyundai Santro
Price 1.3 lakh 2.30 lakh 2.61 lakh 2.35 lakh 2.40 lakh
Comparison of Price Differenciation in Small car
POSITION OF TATA NANO
OPPORTUNITY Its low price. And people get all facilities in affordable price.
Its look very attractive and available in many colour.
Its 20% more species then other low price car in India.
After buying nano company serve all facilities through his own service centre.
Company provide direct car loan facilities through your nearest bank like SBI. United bank of India and many more.
THREAT
It’s a Low status symbol car.
DISTRIBUTION OF TATA NANO
STRENGTH Tata Motors and Fiat are also jointly building a factory
Ranjangaon in Maharashtra. TML Distribution Co. Ltd, which was incorporated on 28 March,
according to the company’s latest annual report. Tata Motors may outsource distribution to a new unit. TATA Motor has n-numbers of showroom in indiaWEAKNESS It is not able to deliver the nano on time as there is a delay in
production of car.
CUSTOMER RELATIONSHIP MANAGEMENT
STRENGTH
Easy availability of spare parts.
Efficient collection of data from field and communication to
the respective plants.
Pan India presence, as well as global presence.
Large network of workshops – Dealer workshops and TASS.
Training facilities – for dealer end and TASS personnel.
THANK YOU
AVANI VERMAROLL NO. 11KUNJ NAGARIAROLL NO. 38