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TRANSCRIPT
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1 December 2009 Tushar Rastogi 2
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Topics of Presentation. Introduction. Description about Tata Nano.
Why it is so cheap?
Obstacles to Nano
6 Ms
Conclusions.
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Introduction. Dream-dream and dream, because
dream gives vision, vision gives thoughts
and finally thoughts lead to the action".
By India's former President Dr. A.P.J. Abdul Kalam
Dreams also give you an idea to changeyours and other life.
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1 December 2009 Tushar Rastogi 5
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An idea can change
yourLIFE
An idea can change
yourWIFE
An idea can also
change OTHERS
life
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Seeds of the Dreams.
Mr. Ratan Tata
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Motivational words said by Dr. A.P.J. Abdul Kalam goes
exactly with Mr. Ratan Tata, Chairman of Tata group, who in
the year 2003, dreamt of producing a safe, affordable Car for
the common man.
Finally after the wait of five years, crossing all financial and
technological barriers, Ratan Tata kept his promise and
unveiled Tata 'Nano' on 10th January 2008, at the 9th Auto
Expo 2008 in New Delhi. Tata Nano, cool & smart, launched by Tata Motors is world's
cheapest Car with a price tag of $ 2500
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Competencies of Tata Nano Tata is now 57th most valuable brand globallylivemint.com: April 22,
2008 The Tata groups intense activities in 2007 have seen itrising 45 places to No. 57 in Brand Finance Top 500 Global Brands
Expectations
According to one report, India as well as other nations, such asEuropean nations[, have great expectations from the Nano and are
keenly and eagerly eagerly awaiting it, especially the electric version ofthe Nano.
Modular design
In fact, Tata envisions going even further, providing the tools for localmechanics to assemble the car in existing auto shops or even in new
garages created to cater to remote rural customers. With the exception ofManjeet Kripalani, BusinessWeek's India bureau chief, few have focused onthis breakthrough element of the Nano innovation (BusinessWeek.com,1/10/08).
http://www.livemint.com/2008/04/22000325/Tata-is-now-57th-most-valuable.htmlhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://www.livemint.com/2008/04/22000325/Tata-is-now-57th-most-valuable.html -
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Competencies of Tata Nano Pricing strategy
Tata initially targeted the vehicle as "the least expensive production carin the world" aiming for a starting price of 100,000 rupees orapproximately $2300 US despite rapidly rising material prices
Export expectation
Being worlds cheapest car it is expected that not only India demand for Nanowill go rise at global level. Since it meeting Euro-4 norms at this price so this istaking as a future of small car segment .
Reputation and Acceptance of Tata After launch
TATAs have shown the world what Indian engineering is truly capable ofFinancial Times U K reports
Enthusiastic support
Tata Motors is receiving preliminary and some very enthusiasticsupport in the media and officials, even from Europe, for the electric-
version from India as well as other-nations. The enthusiasm is even
higher than that for the petrol-version
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Maruti 800 Tata Nano
Engine 800 cc 623 cc
Length 3.335 m 3.1 m
Width 1.440 m 1.5 m
Height 1.405 m 1.6 m
Top speed 120 km/hr 90 km/hr
Cost 2.25 Lakh (on road) 1.26 lakh (on road)
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Petrol Engine
2 cylinder petrol all aluminium Engine
624 cc, 33bhp
Bosch multi-point fuel injection (mpfi)
Variants
Models Ex-showroom
prices
Nano Standard Rs 1,23,360
Nano Deluxe-Cx Rs 1,51,360
Nano luxury-Lx Rs 1,72,360
Diesel Engine
Jointly developed with Diesel Enginespecialist FEV
684 cc
Smallest Common Rail TurbochargedDiesel engine
Engine Options Petrol, Diesel, Hybrid, Electric, Compressed Air
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Vehicle Summary
Body Type HatchbackSeating Capacity 4
Transmission 4 Speed Manual
Suspension McPherson strut
& Independentcoil spring
Brakes Front Disk, RearDrum
Kerb Weight 580 Kgs
Fuel Tank 30 Litres
GroundClearance
180 mm
Wheels 12 inch
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Safety features
The Nanos safety performance exceeds current regulatory requirements
Tata Nano passed the required 'homologation tests
The car has passed the full-frontal crash and the side impact crash
Tata said the Nano has an all sheet-metal body.
Safety features such as crumple zones, intrusion-resistant doors, seat-belts, strongseats and anchorages.
The rear tailgate glass bonded to the body.
Tyres are tubeless
Performance
Top Speed 90 Km/hr
Acceleration 0-70 kmph in14s
Fuel Efficiency 22 kmpl (city)
26 kmpl (highway)
Emissions Bharat III and Euro IV
compliant
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Tata Nano Car
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Description about Nano The project has literally become India's claim-for-fame in the
international-media due to
Tata Motors' innovation in developing the car, as well as keeping it
low in price.
The car itself is expected to boost the Indian Economy
create entrepreneurial-opportunities across India,
expand the Indian car market by 65%.
Mr.Ratan Tata, Chairman of the Tata Group and Tata Motors,
who has described it as an eco-friendly "people's car".
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cont Nano has been greatly appreciated by many sources and themedia
for its low-cost and
eco-friendly initiatives which include using compressed-air asfuel and an electric-version.
Tata Group is expected to mass-manufacture the Nano in verylarge quantities,
particularly the electric-version, and,
besides selling them in India, to also export them world-wide.
The Tata Nanois a rear-engine,
four passenger
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Design.
The Peoples Car,designed with a family
in mind, has a roomy
passenger compartment
with generous leg spaceand head room.
It can comfortablyseat four persons.
Four doors with highseating position make
ingress and egress easy.
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What makes it so cheap ! The Tata Nano uses plastics and adhesives rather than welding.
Introducing the car with an artificially low price through govt-
subsidies and tax-breaks,
Using vertical-integration, or partially using inexpensive
polymers or biodegradable plastics instead of a full metal-body.
It has no AC, no power steering, no power windows, no power
bells and whistles.
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cont The Nano's boot does not open, instead the rear seats can befolded down to access the boot space.
It has a single windscreen wiper instead of the usual pair.
Its door opening lever was simplified.
It has 3 nuts on the wheels instead of the statutory 4 nuts.
It only has 1 side view mirror
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Target market. The low-cost car is clearly intended for the masses.
For the family of four that would otherwise ride on a scooter,
Its also attracts the small cars buyers like Maruti 800, bike
riders etc.
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Obstacles to Nano However, Due to the Singur land dispute, the "Stalled Car Factory" is
"Costing Jobs, Splitting Neighbors in West Bengal Tata's problems in West Bengal are scaring off other industries hoping to
locate here, including Infosys, a software maker that wanted to build abusiness park that would provide 5,000 jobs.
Due to ongoing opposition to Tata's Singur car-factory byMamta Banerjee,who demanded land to be returned from the factory, Tata Motors tookdecision to pull out of Singur. Tata Motors is manufacturing Tata Nano atits Pantnagar plant.
Tata Motors announced it was pulling out its Nano small car industrialproject from West Bengal's Singur and blamed the Mamata Banerjee-ledTrinamool Congress, which spearheaded the protests against the factory,for the 'painful' decision.
While existence of Tata Nano could lead to high industrial growth , the exitlead west Bengal a loss of more than 80,000 crore .How ever Tata has tosuffer in terms of delay and settlement cost .
http://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Pantnagarhttp://economictimes.indiatimes.com/Singur_exit_Tata_not_to_reconsider_decision/articleshow/3557557.cmshttp://economictimes.indiatimes.com/Singur_exit_Tata_not_to_reconsider_decision/articleshow/3557557.cmshttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Mamta_Banerjeehttp://en.wikipedia.org/wiki/Singurhttp://en.wikipedia.org/wiki/Singur -
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The 6 Ms of Mgt Manpower
Money
Material Machine
Method
Marketing
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MANPOWER
Hired more than 2,500 employees for manufacturingthe peoples car
Training given to unskilled labors
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MONEY
A loan of Rs. 9750 Crore at0.1
% simple rate ofinterest.
Repayment of this loan @ 0.1% over 20years.
They got 100% exemption on electricity duty.
The 1100Crores Land has been given with highsubsidies without any stamp duty registration andtransfer charges.
The payment for land would be made in eight equal
annual instalment at a compound interest of 8% p.a.
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MATERIALS
1. Bosch
2. Caparo
3. Continental4. Delphi
5. Denso Fag
6.
Ficosa
8. Freudenburg
9. GKN
10.
Itw Deltar11. INA
12. Johnson Controls
13. Mahle
14. Saint gobain
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MACHINES State of the art machines were installed in the plant
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Marketing Strategies. For marketing strategy Tata had use conventional media in an
unconventional manner.
Nano was big on advertising ,TV campaign was one of the biggest!!
Only innovative use of print, radio and other media, particularly the web. The Tata team was working on
Nano news in papers,
Nano breaks on radio,
Nano appearing in the form of messages or ticker news on TV,
Online Nano games,
Nano chat rooms on the Net,
Nano pop-ups on major websites and
Nano conversationon Facebook, Orkut and blog spaces
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Promotional Tag line.Have Fun, Pay Less, get morewith Tata Nano
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Online Marketing.
Website: www.tatanano.com
The major sections of
the site are:
a. Galary (both pictures
and videos).
b. Game (rather Link to
a nice virtual driving
game by Zapak).
c. Community.
d. Why Nano?e. Booking Details.
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Social Media.
Facebook
Blog
Orkut
YouTube
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Nano Game.
The game by
zapak was a
great move to
spread word
about the car.
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Offline Marketing. Collaborations: Tata partnered with a few banks for releasing
application forms.
Leveraging Existing Infrastructure: People can find Nano
merchandise, application forms and demo cars in Tata Indicom,
Titan, Croma and Westside stores. Tata Indicom is also offering
a money-back offer with every application form.
.
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Print media. The grand launching ceremony
of Tata Nano was covered by all
kind of media personal. It was a
front page headline in many
leading newspapers.
International motor show at
Geneva where Mr. Tata shows
the Nano in front of international
media.
Business tycoon like Mr. Tatawhen delivered the first Nano to
a comman person, itself it makes
a big news.
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METHOD
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Reactions about Nano.
"It's a good historic moment for the Indian auto industry and also a proud oneindeed that an Indian company took a step forward on this road. Its an upgradationfor an auto wheeler rider to by a car now.
Rajesh Jejurikar, Managing Director, Mahindra and Renault's.
"It's good product but it's still too early to say whether it will overtake the 800because it caters to a totally new market segment.
Said Jagdish Khattar, Former MD ofMaruti Udyog Limited
"Meeting the proper quality standards and safety is not feasible at all in such amodel.
Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group SalesIndia.
"I think it is a great thing for India because mobility is giving new opportunities. Ihope Tata drives to great success with the Rs one lakh car, but it is not included inour plan.
Thomas Kuehl, Board Member, Skoda Auto India.
http://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/skoda-auto-india-private-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.html -
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Future of Nano (conclusion). World is getting tougher day by day being unique is acompetitive advantage. Expectations to Nano has proved this .
As customers gain more power, they will demand more
tailoring and value-added service to meet their needs.Companies that innovate on this dimension are likely to berichly rewarded.
So as per this presentation, conclusion can be draw as a futurecar not only of Indian but also if exported than could be to theworld.
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Future of Nano (conclusion)
Emerging markets are a fertile ground for innovation. The challenge ofreaching dispersed, low-income consumers in emerging markets oftenspurs significant innovation.
As customers gain more power, they will demand more tailoring andvalue-added service to meet their needs. Companies that innovate onthis dimension are likely to be richly rewarded.
World is getting tougher day by day being unique is a competitiveadvantage. Expectations to Nano has proved this .
After 100 years to Henry Ford , Tata has proved him again not only hecame out of the expectations but also came out with a platform for
Indian auto sector . So this as per this project conclusion can be draw as a
future car not only of Indian but also if exported than couldbe to the world.
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ConclusionNano really proved cheapest car of the industry
Nano definitely helps to come true for middle man
s dream
Some hidden minus points of nano are there, still Itis beneficial to Gujarat as a state development.
Brand Gujarat gets a big boosts internationallydue to Nano Project.
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Questions forAudiences???
Will the Nano
succeed?
What do you think? Is
the Nano a car of the
future? Would you
drive one?