tata naino

8/3/2019 Tata Naino

1/54

1 Entire contents 2006 Forrester Research, Inc. All rights reserved.

They are still saying it cantbe done, he says, insistingthat it can and will

8/3/2019 Tata Naino

2/54


8/3/2019 Tata Naino

3/54


Tata motors limited is India's largestautomobile company. The company is the worldsfifth largest medium and heavy commercialvehicles manufacturer. Established in 1945, TATAMotors presence indeed cut across the length,

breadth of India with over 4 million vehicles sincethe first rolled out in 1954 . The foundation of thecompanys growth is the deep understanding of thecustomer need, and ability to translate them intocustomer-desired offerings through leading edgeR&D.

8/3/2019 Tata Naino

4/54


Introducing the Tata Nano itreceived media attention due to its target low price.The car is expected to boost the Indian economy,create entrepreneurial-opportunities across India,

as well as expended the car market by 65%. The carwas envisioned by Ratan Tatachairman of TataGroup and Tata motors who has describes it as aneco-friendly peoples car.

8/3/2019 Tata Naino

5/54


To study about how a new product- Tata Nano wasdeveloped based on marketing theory of newproduct development.

To study about what made possible for Tata to

develop and produce a car for just Rs. One Lakh. To study the objectives and target customer of

Tatas One lakh car.

8/3/2019 Tata Naino

6/54


A promise is a promise, said Rattan Tata, chairmanof Tata motors, on 10th January 2008 when theNano was first displayed at the auto show in Delhi.The Nano project didnt grab the attention of only

Indians; the entire worlds had their eyes glued tothe worlds cheapest car.

8/3/2019 Tata Naino

7/54


StrengthBrand Name TATA

Cost Price Low

Fuel Efficiency

Safe

Weaknesses

Low power

Not a status symbol

Delay in manufacturing

Limited features

8/3/2019 Tata Naino

8/54


Opportunities

Large market for selling

Awareness in the market

First car in low range

Can hit it global market

Threads

Company rival

Not sure to hit in rural and semi

urban area

8/3/2019 Tata Naino

9/54


A product can be considered new in thefollowing situations:

New to the world products

New product lines

Additions to exiting product line Improvements and revisions of exiting product

Repositioning

Cost reducing

As far as Nano is concerned, it falls into new tothe world products in the context that it has madea history for the cheapest car ever made withoutcompromising on quality.

8/3/2019 Tata Naino

10/54


For a father driving scooter with ayoung kid standing in front and wife seatedbehind holding a little baby in slippery roads.itgoes downright dangerous. This led to wonder

whether one could conceive of a safe affordable,all-weather form of transport for such a family.

8/3/2019 Tata Naino

11/54


no. of cars has per 1000 people = 7. Average growth of auto industry=12% , but

passenger vehicle sold in India(end of march2006)=just 1.3 million.

The car purchased by 1 billion Indian per year =car purchased by 300 million American per month.

if 4 wheeler cost as little as 2 wheeler , that couldchange the fast.

About 7 million two wheelers were sold in India in2006- prices between Rs 3000 & Rs 7000.

8/3/2019 Tata Naino

12/54


So Tata is targeting a price of one lakh. that is impossibly cheap in the west but remains 3times higher than Indias annual per capita income.

The average pay for factory workers a Tata motorsis just Rs 27500.

8/3/2019 Tata Naino

13/54


A scooter with two extra wheels at the back forbetter stabilities? An auto rickshaw with four wheels?

A three wheeled car like a closed auto rickshaw? A four wheeled car made ofengineering plastic? A four wheeled rural car?

8/3/2019 Tata Naino

14/54


Rolled up plastic curtains in place of window?

Openings like auto rickshaw from the side? A four wheeled opened car with safety side bars?

But a market wanted a car which is not something thatpeople would say, ah! Thats just a scooter with four

wheels or an auto rickshaw with four wheels and notreally a car.

8/3/2019 Tata Naino

15/54


During interaction with customers Wagh(Garish Wagh, project leader) realize that fourwheels had emotional not just practical appeal.Areas of concern:

Built on a different platform than conventionalonce.

Safety & regulatory requirements

Capable to take any challenge.

8/3/2019 Tata Naino

16/54


Cost:

8/3/2019 Tata Naino

17/54


Total sale estimation:Now the question was, how

much to produce.

1. It should be twice of the demand of Maruti 800,the lowest end car.

2. The price shall be increasing the demand.3. If only 10% customer of 9 million two wheeler

market transit to 4-wheeler it shall amount to50% of the passenger car market share.

4. It was decided to setup plant with 5 lacs car perannum capacity.

8/3/2019 Tata Naino

18/54


finally the product was developed withfollowing features:

Engine capacity- Bosch 624 c.c. twin cylinder.

Low capacity, lighter.

4 speed manual gear box. All aluminum engine.

Higher thermal conductivity than cost iron,lighter and so better mileage.

Superb control over emission and smoothacceleration.

Dimensions L:3.1m, W:1.5m, H:1.6m.

8/3/2019 Tata Naino

19/54


Safety requirements are adequately met.

Single wiper in place of two.

Cost effective yet functionality is met.

Tube less tires.

Instrument console in the center.

Elegant to look and can be used both in left and right

hand version.

The final verdict

THE COST IS Rs1 LAC

8/3/2019 Tata Naino

20/54


8/3/2019 Tata Naino

21/54


Nano would be commercialized in wholeof the India. It was mostly targeted to the middleclass and lower middle class people.

8/3/2019 Tata Naino

22/54


8/3/2019 Tata Naino

23/54


To find the perception of TATA NANOamong the young Generation Executives studyingat IILM.

8/3/2019 Tata Naino

24/54


Characteristics of NANO..

Cheap- it is the cheapest car in the world. 1 lackfor standard model. Due to this it is considered asthe peoples car.

Fuel-efficient engine- its mileage is 20km/liter.The luxury model has a diesel engine.

8/3/2019 Tata Naino

25/54


Safe- the car contains a strong passengercompartment with crumple zones, intrusionresistant doors, seat belts, strong seats,anchorages it had passed a full frontal crashtests. Moreover its a safer way of transport thanmotorcycle and rickshaws.

Comfortable NANO has been conceived for fourperson . Its space adapted according for this. Fourdoors enables the entrance in the car. Seatingspace is generous and quit comfortable. Besides,

the car will be available in to two models- standardand deluxe.

8/3/2019 Tata Naino

26/54


Ecological according to Ratan Tata, It is lesspollutant than two wheelers being manufactured in

India.

Trendy- both version of Tata Nano (standard anddeluxe ) will be available in several colors. Thecustomer will also have the possibilities to chooseadditional accessories to adapt the car to its needsto make its look trendy and stylish.

8/3/2019 Tata Naino

27/54


To discover the Tata Nanos perception weneeded to know what respondent think about TataNano. We identified some characteristics as rural,safety, trendy and ecological which can define TataNano and respondent need to be asked if theyagreed and also know information about whetherthe respondents perceive NANO as the car foryoung generation or peoples car or both. Besidesthey needs to be questioned social class target for

NANO. They have to chosen between upper class ,upper middle class ,middle class, middle lowerclass and lower class.

8/3/2019 Tata Naino

28/54


Moreover we identified the following criteria:price and affordability, fuel efficiency, good design,quality, comfort, after sale services and Tatasbrand name as part of the reason why people byNano.We need to know the purchase intention of therespondents and whether they think Tata Nano willbe successful or not .

8/3/2019 Tata Naino

29/54


Survey result-

We interviewed 50 student of theschool in order to complete the survey. 44% ofthem were female and 56 % male. We have

balanced proportion between both genders .

8/3/2019 Tata Naino

30/54


General perception of Nano.

8/3/2019 Tata Naino

31/54


8/3/2019 Tata Naino

32/54


8/3/2019 Tata Naino

33/54


8/3/2019 Tata Naino

34/54


8/3/2019 Tata Naino

35/54


8/3/2019 Tata Naino

36/54


Target market.

8/3/2019 Tata Naino

37/54


8/3/2019 Tata Naino

38/54


8/3/2019 Tata Naino

39/54


8/3/2019 Tata Naino

40/54


8/3/2019 Tata Naino

41/54


8/3/2019 Tata Naino

42/54


8/3/2019 Tata Naino

43/54


8/3/2019 Tata Naino

44/54


8/3/2019 Tata Naino

45/54


8/3/2019 Tata Naino

46/54


Correlation

8/3/2019 Tata Naino

47/54


Nano is not really perceived as a rural car. 64% ofrespondents disagree with this fact that it is a ruralcar. Despite being the cheapest car in the worldpeople accept and see it as a city car. According tosecondary data analysis we found that Nanos mainmarket in rural India but it has also huge market inTier1, Tier2 and Tier3 cities in India.

8/3/2019 Tata Naino

48/54


60% of respondents agree that Nano is a trendycar. People perceive it is also a fashionable car. Ithas potential to make huge business apart from

rural part.

More than 90% of respondents agree with the it ispeoples car. We got mixed responses about Nanoas a car for young generation . It is a car fits to theneeds of all types of customers. It is a product formass consumption.

We have got fairly mixed response in term ofsafetyand ecology. Most respondents said they dontknow whether it is safe, ecology or not.

Th d i N f

8/3/2019 Tata Naino

49/54


The respondents perceive Nano as a car ofmiddleand lower middle class. Its price, its size and itsfeatures are the reason of such an affirmation . It is

also conform that it is a car of masses.

Price and Tata brand name is most importantreason for that the people buy Nano. 96%respondents gave price as the first reason for thebuy Nano. We believe the company should keep upits brand leverage on the people. It must keep thepromised price . The other reason like gooddesign, fuel efficiency , after sale services were not

considered important because Nano is yet to belaunched.

8/3/2019 Tata Naino

50/54


67% respondents think that the Nano is asuccessful car just 4% of them doubt this. Thissuggest that people trust Tata as a company, theythink very positively about Nano despite the fact

that is has not launched.

8/3/2019 Tata Naino

51/54


In the questionnaire in a question where the

respondents had to rank choices from 1 to 7, theyticked only one choice, instead of ranking them sowe had to narrate that question to most of therespondent order to get accurate information.

The term ecological in one of the questions wasnot very clear so we had to explain it torespondents.

8/3/2019 Tata Naino

52/54


Anther issue while selecting the sample is

convenience sampling. We decided to go forconvenient sampling in order to make the processsample

Sample does not represent the whole target marketfor Nano. We have chosen only one segment,young executive.

8/3/2019 Tata Naino

53/54


This project useful because it completed the theorywhich we learned in class. It allows us to use thewhole market research process and to understandthe each stage of it. We learn that how to conductthe survey through the collection of secondary dataand the elaboration and administration of aquestionnaire to a selected sample.

8/3/2019 Tata Naino

54/54

Submitted bySHACHI PANDEY

AD & Vth sem

tata naino

Documents