PRESENTED BY-Deepak Khandelwal

MARKETING STRATEGY OF

Contents• Idea Generation• History• Introduction • Product Specification• Product Features• Pricing• Promotion• Distribution• SWOT analysis• Post purchase service

• “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

Idea generation

History Tata Motors Limited, formerly known as TELCO (TATA

Engineering and Locomotive Company), is a multinational corporation headquartered in Mumbai, India. It is India's largest passenger automobile and commercial vehicle manufacturing company. Part of the Tata Group, and one of the world's largest manufacturers of commercial vehicles.

The OICA ranked it as the world's 20th largest automaker, based on figures for 2006.

Tata Motors has its manufacturing base in Jamshedpur, Pantnagar, Lucknow, Pune.

Tata Motors was established in 1945, when the company began manufacturing locomotives. The company manufactured its first commercial vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in 1969.

In March 2008, it finalised a deal with Ford Motor Company to acquire their British Jaguar Land Rover (JLR) business, which also includes the Rover, Daimler and Lanchester brand names.The purchase was completed on 2nd June 2008.

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Introduction

The Tata Nano was introduced at the 9th auto expo by Tata Motors in New Delhi, India on Jan. 10, 2008.

Tata Nano is made for medium class family it is Small, affordable and great Stylish Car.

The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL

Specification• Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan

Micra and the Smart.

• Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four to five people

• Engine: A two cylinder 623 cc, 35 horsepower rear mounted, all aluminium, multi-point fuel injection petrol engine can power the car to top speeds of 105 kilometres per hour (65 miles per hour).

• Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.

• Pollution: 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

Specification….• Safety: Car exceeds current regulatory requirements with a strong

passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.

• Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable whose base model sells for about 4,800 dollars -- nearly double the price of the Nano

• Nearest International Rival: China's Chery QQ which retails for 3,600 dollars.

• Market: India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.

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)

• Length:- 3.1 mtr• Wide:- 1.5 mtr• Height:- 1.6 mtr• Weight:- 600 Kg• Mileage:- 20 Kmpl• Fuel tank:- 15 Ltr• Engine:- 623 cc• Top speed:- 95-100 Kph• Ground clearance:- 180

mm• Gear box:- 4-speed

Petrol Engine

2 cylinder petrol all aluminium Engine

624 cc

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 Engine specialist FEV

684 cc

Smallest Common Rail Turbocharged Diesel engine

Engine Options – Petrol, Diesel, Hybrid, Electric, Compressed Air

Vehicle Summary

Body Type Hatchback

Seating Capacity 4

Transmission 4 Speed Manual

Suspension McPherson strut & Independent coil spring

Brakes Front Disk, Rear Drum

Kerb Weight 580 Kgs

Fuel Tank 30 Litres

Ground Clearance

180 mm

Wheels 12 inch

• Though the one lakh price tag is not fixed by TATA group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company. To accept this challenge the following strategies are followed:-

• Target costing method

• Penetration pricing

• Low pricing policy with minimum profit margin.

Promotion * Enough use of one of the most important element of

promotion mix , publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:-

* Publicity as “One lakh car” by mouth to mouth.o * Auto expo 2008,New Delhi & Genevao * Publicity through print & electronic media.o * Internet will be a major media for advertising.

* For other type of promotional activities ,cost factor that is 1 lakh price tag is to be keep in mind, TATA is going to launch its nano mobile for indicom user, nano watches , nano T-shirts available in Westside stores .

*Advertising:- TV & other mass media will be less effective, thus too much money will not be invested in this regard . Mainly word of mouth advertising will get more emphasis

Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online .

Social Media communities:-Official Orkut community Members - 6,906. Official Facebook Group Fans - 4,210 Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when

I began writing this post) No. of Blog Posts - 61,664 TATA have a blog on the official website where they have been discussing

quite interesting topics and generally maintaining an active community

distribution TATA, it’s business has been extended to the overseas i.e. to the

Europe, Africa, U.S & Australia.

Hence it has n-number of showrooms in India & outside of India.

The exclusive showrooms are the best distribution channels for TATA itself.

SWOT analysisSTRENGTH Price, mileage, style, brand name, all weather vehicle,

first innovation.

WEAKNESS Fiber body, low suspension power, low engine capacity, light vehicle, not suitable for hilly areas, delay due to singur violation.

OPPORTUNITY Bikers can be motivated, auto rickshaw & second hand market can be motivated.

THREAT Other competitors (Honda, Maruti , Tara tiny) not eco-friendly, Govt. may come with new rule.

• Family of four riding a scooter on wet roads

• Two Wheeler Market

• Used Cars Market

• second hand car user

• middle and lower income group people.

Post purchase service• -As Tata is going to provide this car with rupees one lakh

only, so it may not give the same service like it’s other vehicles.

• -But it’s post purchase services will be better than a costlier bike.

• -Customers may get minimum three services from Tata in any of it’s servicing center, all over the country.

• -We the future customers, can also hope for additional services from TATA group.

Conclusion• World is getting tougher day by day being unique is a

competitive advantage. Expectations to Nano has proved this .

• After 100 years to Henry Ford , Tata has proved him again not only he came 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 could be to the world.

Important questions ?

• Will the Nano succeed?

• Is it fair to blame the Nano for the (upcoming)

ills of Indian road infrastructure?

• Is the Nano a car of the future?