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Tata Nano

INTRODUCTION

1.1 INDUSTRY PROFILE

The automobile industry in India is the ninth largest in the world with an annual

production of over 2.3 million units in 2008. In 2009, India emerged as Asia's

fourth largest exporter of automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry

has demonstrated sustained growth as a result of increased competitiveness and

relaxed restrictions. Several Indian automobile manufacturers such asTata

Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and

international operations. India's robusteconomic growthled to the further

expansion of its domestic automobile market which attracted significant India-

specific investment by multinational automobile manufacturers. In February 2009,

monthly sales of passenger cars in India exceeded 100,000 units.

The automotive industry emerged inIndia in the 1940s. Following the

independence, in 1947, the Government of India and the private sector launched

efforts to create an automotive component manufacturing industry to supply to the

automobile industry. However, the growth was relatively slow in the 1950s and

1960s due to nationalisation and the license raj which hampered the Indian private

sector. After 1970, the automotive industry started to grow, but the growth was

M.S. Ramaiah College of Arts, Science & Commerce 1

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Automotive_industry

http://en.wikipedia.org/wiki/Economic_liberalization_in_India

http://en.wikipedia.org/wiki/Tata_Motors


http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Mahindra_and_Mahindra

http://en.wikipedia.org/wiki/Economic_development_in_India


http://en.wikipedia.org/wiki/Independence_of_India

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Private_sector

http://en.wikipedia.org/wiki/License_raj


http://en.wikipedia.org/wiki/Automotive_industry

http://en.wikipedia.org/wiki/Economic_liberalization_in_India




http://en.wikipedia.org/wiki/Mahindra_and_Mahindra

http://en.wikipedia.org/wiki/Economic_development_in_India


http://en.wikipedia.org/wiki/Independence_of_India

http://en.wikipedia.org/wiki/Government_of_India

http://en.wikipedia.org/wiki/Private_sector

http://en.wikipedia.org/wiki/License_raj



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mainly driven by tractors, commercial vehicles and scooters. Cars were still a

major luxury. Japanese manufacturers entered the Indian market ultimately leading

to the establishment of Maruti Udyog. A number of foreign firms initiated joint

ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for

building motorcycles and light commercial-vehicles. It was at this time that the

Indian government chose Suzuki for its joint-venture to manufacture small cars.

Following the economic liberalisation in 1991 and the gradual weakening of the

license raj, a number of Indian and multi-national car companies launched

operations. Since then, automotive component and automobile manufacturing

growth has accelerated to meet domestic and export demands

1.2 CAR STATISTICS

The Indian automotive industry is the 2nd fastest growing in the world. About 8

million vehicles are produced annually in this country toady. During 2005-2006,

India has emerged as the 3 rd largest market in the Asia Pacific Region. With

various car manufacturing companies setting up their units in different parts of the

country, the production of the cars will increase at a very fast rate. The car reports

indicate that India will soon become one of the top 10 car manufacturing countries

leaving behind the U.K. Car statistics also show that by the end of the fiscal year

2006-2007, the car production capacity in India will exceed the mark of 2 million.


http://en.wikipedia.org/wiki/Japan


http://en.wikipedia.org/wiki/Suzuki

http://en.wikipedia.org/wiki/Japan


http://en.wikipedia.org/wiki/Suzuki



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Thus, the production of cars will increase by 70% from the present capacity of 1.2

million.

The Indian automotive industry is the 2nd fastest growing in the world. About 8

million vehicles are produced annually in this country toady. During 2005-2006,

India has emerged as the 3rd largest market in the Asia Pacific Region.

With various car manufacturing companies setting up their units in different parts

of the country, the production of the cars will increase at a very fast rate. The car

statistics indicate that India will soon become one of the top 10 car manufacturing

countries , leaving behind the UK. Car statistics also show that by the end of the

fiscal year 2008-2009, the car production capacity in India will exceed the mark of

2 million. Thus, the production of cars will increase by 70% from the present

capacity of 1.2 million.

The domestic sale of passenger cars have increased significantly over the years. A

graphical representation of the domestic sale of cars will give you an insight about

the present market situation prevailing in the country.

In the recent years, India has emerged as one of the major bases for manufacturing

small passenger cars. At In the recent years, India has emerged as one of the major

bases for manufacturing small passenger cars. At present the Indian automotive

industry boasts of being the 3 rd largest manufacturer of small cars . According to

the car statistics almost 70 % of the cars sold in this country come under the




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segment of small cars. A number of car manufacturers like: Maruti Udyog, Tata

Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer

various new model of cars now and then. It is expected that the various automobile

manufacturers will be investing about $ 5 billion in India, between 2005-2010.

Some important statistics about cars also include car insurance statistics, auto

insurance statistics, auto accident statistics and car crash statistics. All these data

and statistics help in framing the state policies and issuing the guidelines to

different auto manufacturers and dealers. As per the car reports , export of

passenger cars from India have also grown considerably over the last decade. A

graphical representation of car export trend will help you to make an in-depth

analysis of the present status of the Indian automotive industry: With new

strategies being implemented and more investments being made in

automotive industry the production as well as the domestic sale and exports will

increase substantially.

1.3 INDUSTRY BACKGROUND

Driving the most luxurious car has been made possible by the stiff competition in

the automobile industry in India, with overseas players gathering the same

momentum as the domestic participants. Every other day, we have been hearing

about some new launches, some low cost cars – all customized in a manner such

that the common man is not left behind. In 2009, the automobile industry is




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expected to see a growth rate of around 9%, with the disclaimer that the auto

industry in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world.

Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth

largest exporter of automobiles. Several Indian automobile manufacturers have

spread their operations globally as well, asking for more investments in the Indian

automobile sector by the MNCs.

1.4 POTENTIAL OF THE AUTOMOBILE INDUSTRY

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan

Motors plans to export 250,000 vehicles manufactured in its India plant by 2011.

Similar plans are for General Motors.

Table 1.1

Turnover of Automobile Manufacturers(In USD Million)

Year In USD Million

2003-04 14,880

2004-05 16,544

2005-06 20,896

2006-07 27,011

2007-08 34,285

Source (Secondary Data)

Graph 1.1 :

Graph showing Turnover of Automobile Manufacturers(In USD Million)




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14,880

16,544

20,896

27,011

34,285

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2003-04 2004-05 2005-06 2006-07 2007-08

The figures show that the automobile sector in India has been growing robustly.

The market shares of the different types of vehicles will clearly depict the demand

pattern in this sector.

Domestic Market Share for 2008-09

Table 1.2

Passenger Vehicles 15.96%

Commercial Vehicles 3.95%

Three Wheelers 3.6%

Two Wheelers 76.49%


Graph 1.2




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15.96%

3.95% 3.60%

76.49%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Passenger Vehicles Commercial Vehicles Three Wheelers Two Wheelers

1.5. DEFINITIONS OF TERMS USED

Market

Traditionally market was a place where buyers and sellers gathered to exchange

their goods, such as village square. Economists use this term to refer to a

collection of buyers and sellers who transact over a particular product or

product class.

Business people often use the term market colloquially to cover various

grouping of customers. They talk about market need, demographic market and

geographic market or they extend the concept to cover non cu

groupings as well. The concept of exchange leads to the concept of market.




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According to Philip Kotler :-

“A market consists of all the potential customers sharing particular need or

want who might be willing and able to engage in the exchange to satisfy needs

or want”.

Thus the size of the market depends on the number of people who exhibit their

needs or wants, have resources that interests others, end are willing and able to

offer those resources in the exchange for what they want.

Marketing

Marketing is indeed an ancient art, it has been practiced in tone form or the

other since the days of Adam and Eve. Its emergence as a marketing discipline,

however, is of relatively recent origin. And within this relatively most

marketing thinkers and practitioners in the world over, regard marketing as the

most important of all functions in any business.

Marketing is the economic process by which goods and services are exchanged

between the producer and the consumer and their values determined in terms of

money prices.

According to Philip Kotler :-




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“Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating offering and exchanging

products of value with others”.

Thus the definition of marketing rests on the following core concepts :-

Fig 1.1

As the twenty first century is upon us, marketing is becoming more attractive at

the company, state, national and international levels. In the early days, there

was no difference between ‘selling’ and ‘marketing’. But today the difference

between these two terms is clearly evident.

Many organizations have been involved in developing marketing activities to

satisfy the needs and wants of a group of customers. This ‘segment’ concept


Needs

Products (Good, Services & Ideas)

Value, Cost and Satisfaction

Exchange and Transactions

Relationships and Networks

Markets

Marketers & Prospects



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has helped in the development of new products and services an

specialization in selling is being attained.

With the development of new markets and new avenues of selling, a wide

variety of consumer and producer goods has been designed and developed, and

for many the ‘marketing’ has become a good profession.

The developing countries are giving much importance for marketing to develop

their internal and external markets. Even the socialist countries have started

studying the marketing concept in a scientific way to introduce them actively in

their internal distribution system.

Consumer

The consumer is the king in the market. Consumer tries to satisfy the wants

from different market sources. His taste, fashion and preference also changes

from time to time. Hence, the marketer should learn the art of reading the

mind of the consumer and act accordingly.

As the country is vast geographically, the consumers of India are scattered over

a vast territory. As the country is marked by great diversity in climate,

religion, language, literacy level, customs and calendars, life styles

economic status, the consumers of India present a complex and bizarre group.




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The heterogeneity holds many implications for marketers especially to those

going in for national marketing. There are certain data in the Indian consumer

as a first step at drawing a broad sketch of the Indian consumers.

The Indian marketing environment, has more than 920 million consumers as of

March 1995 survey and today the country has more than a billion consumers.

Life expectancy today is 62 years, ten years ago it was only 54 years and in

1947 it was just about 30 years, improved health standards, lower infant

mortality, fall in birth rate and the growth in medical facilities have contributed

to such an increase in life expectancy.

Consumer Perception

Perception is the process by which individuals select, organize and interpret

stimuli into a meaning and coherent picture of the world. Perception has

strategy implication for marketers, because consumers make decision based on

what they perceive, rather than on the basis of objective reality.

The lowest level at which an individual can perceive a specific stimulus is

called the absolute threshold. The minimal difference that can be perceived

between two stimuli is called the differential threshold or just noticeable

difference. Most stimuli are perceived above the level of consumer conscious

awareness, however, weak stimuli can be perceived below the lev




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conscious awareness. Research does not support the contention that subliminal

stimuli effect consumer buying behaviour.

Consumer selection of stimuli from the environment is based on the interaction

of their expectations and motives with the stimulus itself. The principle of

selective perception includes the following concepts, selective exposu

selective attention, perception defense and perceptional blocking. People

usually perceive things they need or want, and block the perception of

unnecessary, unfavorable, or painful stimuli. Consumers organize

perceptions into unified whole according to the principle or gestalt psychology,

figure and ground, grouping and closure.

Interpretation stimuli is highly subjective and is based on what the expects to

see in light of previous experience, on the number of plausible, and on the

clarity of the stimulus itself. Influences that tend to distort

interpretation include physical appearances stereo types, hello effec

irrelevant cues, first impression and the tendency to jump the conclusion.

Just as individual have a perceived self image as a certain kind of person, so,

too, do products and brands have images (i.e. symbolic meaning) for the

consumer. The perceived image of a product or services (i.e. positioning) is

probably more important to its ultimate success than are its actual physical

characteristics.




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Products and services that are perceived favorably have a much better chance

of being purchased than products or services with unfavorable or neutral

images.

Compared with manufacturing firms, service marketers face several unique

problems in the positioning at promoting their offering, including the service

environment and service characteristics (e.g. intangibility, variability

perishable, simultaneous production and consumption).

Regardless of how-well positioned a product or service appears to be the

marketers may be forcing to reposition it in response to market events such as

new strategies or changing consumer preference.

Consumers often judge the quality of service on the basis of variety of

informational cues, some are intrinsic to the product (e.g. color, size, flavor and

aroma) while other are extrinsic (e.g. price, store, image, brand image, service

environment). In the absence of direct experience or other experience.

Consumer often relies on price as indicator of quality. The image of retail

stores influence the perceived quality of products they carry, as well as the

decision of a consumer as where to stop.




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Consumer imagine beyond perceived price as store image to the producers

themselves. Manufacturer who enjoy favors generally find their new products

are accepted more readily then those of manufacturer with less favorable or

‘neutral’ images.

Consumer Perception Towards a Product

After undertaking a various amount of research and later developing a product,

the feedback forms a vital part. How the customer perceives the product is very

necessary. The company should give utmost importance to the opinions of the

customer. Based on their feedback and perception, a product m

manufactured.

Once the company releases a new product into the market, it is necessary to

know the response from the market as to how well the product is being

received. Customers Perception gives out the opinions about the product. If

there are any drawbacks, then it gives a chance to the company to rectify them

and improve upon them.

Periodical surveys such as this, should be undertaken by the company to keep

in touch with the customers perception and preferences from the company.




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Satisfaction

Satisfaction in the literal sense means something, which brings about contentment

or pleasure or a state of being satisfied by the fulfillment of the needs or desire.

But in terms of marketing it is used as relative term to refer to the match between

the expectations and the actual satisfaction derived by the consumers. Before

making a purchase a consumer forms a expectation about a particular product.

After the purchase if the product lives up to the expectations of the consumer then

only he is going to be satisfied. But if the product does not meet the expectations

than the consumer feel dissatisfaction.

Consumer Satisfaction

Consumer satisfaction in marketing terminology is defined as the “response of a

consumer towards a particular product or service available, it is feeling of

happiness or appreciation arising in a person after using a commodity or service

and even a feeling to acquire or consume the commodity again”. In other words

satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance (or outcome) in relation to his or

her expectations. The consumer satisfaction is function of the closeness between

the buyer’s product expectations and the product perceived performance. If the

product performance falls short of consumer expectations, the consumer is more

likely to be disappointed, if it meets expectations the consumer is satisfied if it




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exceeds expectations the consumer is delighted. These feelings make difference in

whether the consumer buys the product again and talks favorably or unfavorably

about the products to others.

Customer Satisfaction

Fig. 1.2


PerceivedQuality

Customer Expectation

s

PerceivedQuality

Customer Satisfactio

n

Customer Complaint

s

Customer Loyalty



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RESEARCH DESIGN

2.1 TITLE OF THE PROJECT

This project is done based on the topic “CONSUMER SATISFACTION

TOWARDS TATA NANO CAR IN BANGALORE CITY”

2.2 STATEMENT OF PROBLEM

With the recent influx of different brands in today’s four wheeler auto

segment each striving to satisfy customers with the end resu

maintaining loyalty, at present cars as such have become necessity but not a

nicety. With this out look of today’s market it is even a layman’s perceptive

that Tata Motors by itself reflects a satisfied customer.

Keeping in mind curriculum requirement & organizational requirement the study

has been conducted to find out customer satisfaction towards newly launched Tata

Nano car in Bangalore city. However, due to time constraint an in-depth study

could not be under taken.




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2.3 OBJECTIVES OF THE STUDY

1. To know the awareness level of Tata Nano car amon

respondents.

2. To know the reasons for preferring Tata Nano car.

3. To know the advertisement effectiveness on consumers.

4. To study the expectation of consumers from Tata Nano car.

5. To know what segment of customer is attracted towards Tata Nano

car.

2.4 SCOPE OF STUDY

The geographical scope of study is confined to Bangalore city only. The

various customers were met to find out their perception towards the various

elements that satisfies the customer specially towards Tata Nano car.

2.5 RESEARCH METHODOLOGY

This research work is basically a descriptive research as it involved the study of

attitudes & satisfaction of customers for users and non users of Tata Nano car i.e.

their satisfaction levels for various attributes were studied.




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Most of the time it is not possible to examine the whole of the universe. Naturally

drawing conclusions about a large group on the basis of small sample has become

very popular & so this studies has also no exception.

2.6 SAMPLE SELECTION & SIZE

Sampling is a systematic approach of selecting a few elements from an entire

collection of units (population) in order to make some inferences about the total

population. It is a small specimen area representation of the whole population.

The sample size was decided to be 50, large enough to represent the population.

The data was collected through a sample survey by personal interviews using

structured questionnaires & reviewing secondary data.

Systematic sampling was follows to provide representative samples at different

locations in Bangalore.

2.7 RESEARCH INSTRUMENT

The questionnaire used for this study in highly structural keeping in mind to get

reliable information. It consisted of 20 questions dealing with various aspects of

sales satisfaction towards mainly services provided by Auto Link showroom.




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The questionnaire along with a covering letters from the project guide, soliciting

customers co-operation for the study & appeal to extend their free & frank

opinions regarding the various parameters of satisfaction. They were also assured

the valuable information given by them shall be treated as confidential & would be

used only for research purposes.

2.8 DATA COLLECTION & ANALYSIS

The data was collected by interviewing the respondent through questionnaire

& this raw data collected was transformed in to a needed list of information.

The collected data from the respondents with the help of research instruments i,e

questionnaire were tabulated, analyzed & inter predated. Liberal usage of bar

charts & graphs has been made in this study so as to make the data illustrative.

2.9 OPERATIONAL DEFINITIONS & CONCEPTS

Auto consultant: the people who technicalities and the present

market scenario of the vehicles. They give their opinion or advice

for those who seek their help.




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Market penetration: improving sales of a product in a particular

market by increasing advertisements. By using new application

techniques.

Quantitative research: the design of a quantitative research study

includes the method for collecting the data the sample design, and

construction of data collection instrument.

Mobile servicing: the active or movable service from one place to

another, to provide assistance to customers in case of any vehicle

breakdown.

2.10 LIMITATIONS OF STUDY

The study could not be conducted on a large sample size and area

because of time constraints.

The number of sample size is 50 respondents.

The study is time bound & would be applicable to the current

findings of the study.




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COMPANY PROFILE

3.1 ABOUT TATA NANO

Tata Nano is a rear-engined, four-passenger city car built by Tata Motors, aimed

primarily at theIndian market. The car has a fuel efficiency of aro

26 kilometres per litre (73 mpg-imp; 61 mpg-US) on the highway and around

22 kilometres per litre (62 mpg-imp; 52 mpg-US) in the city. It debuted at the 9th

annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi, India.

The Nano had its commercial launch on March 23, 2009 and a booking period

from April 9 to April 25, generating more than 200,000 bookings for the car. The

cars started to be delivered to customers after July 17, 2009, with a starting price

of Rs 100,000, which is approximately equal to UK£1,360 or US$2,160 as of

December 2009. This is cheaper than the Maruti 800, its main competitor and next

cheapest Indian car priced at Rs 184,641 ($3,988 U.S.).Tata had sought to produce

the least expensive production car in the world aiming for a starting price of Rs

100,000 (approximately US$2,000 as of June 2009).


http://en.wikipedia.org/wiki/Rear-engine_design

http://en.wikipedia.org/wiki/City_car


http://en.wikipedia.org/wiki/Transport_in_India#Automobiles

http://en.wikipedia.org/wiki/Auto_Expo

http://en.wikipedia.org/wiki/Pragati_Maidan

http://en.wikipedia.org/wiki/New_Delhi


http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/UK%C2%A3

http://en.wikipedia.org/wiki/US$

http://en.wikipedia.org/wiki/Maruti_800

http://en.wikipedia.org/wiki/Production_car

http://en.wikipedia.org/wiki/File:Nano.jpg

http://en.wikipedia.org/wiki/Rear-engine_design

http://en.wikipedia.org/wiki/City_car


http://en.wikipedia.org/wiki/Transport_in_India#Automobiles

http://en.wikipedia.org/wiki/Auto_Expo

http://en.wikipedia.org/wiki/Pragati_Maidan

http://en.wikipedia.org/wiki/New_Delhi


http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/UK%C2%A3

http://en.wikipedia.org/wiki/US$





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In early 2008 the news magazine Newsweek identified the Nano as a part of a

"new breed of 21st-century cars" that embody "a contrarian philosophy of smaller,

lighter, cheaper" and portend a new era in inexpensive personal transportation

and potentially, "global gridlock ". The Wall Street Journal confirmed a global

trend toward small cars, which includes the Nano.

"Nano" means "small" in Gujarati, the language of the founders of the Tata Group.

"Nano" from the SI prefix for one-billionth is derived from the Greek, meaning

dwarf, and is sometimes used to mean "small" in colloquial English.

3.2 HISTORY

The introduction of the Nano received media attention due to its targeted low

price. The car is expected to boost the Indian economy, create entrepreneurial-

opportunities across India, as well as expand the Indian car market by 65%. The

car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors,

who has described it as an eco-friendly "people's car". Nano has been greatly

appreciated by many sources and the media for its low-cost and eco-friendly

initiatives which include using compressed-air as fuel and an electric-version (E-

Nano). Tata Group is expected to mass-manufacture the Nano, particularly the

electric-version, and, besides selling them in India, to also export them worldwide.

Critics of the car have questioned its safety in India (where reportedly 90,000

people are killed in road-accidents every year), and have also criticised the


http://en.wikipedia.org/wiki/Newsweek

http://en.wikipedia.org/wiki/Gridlock

http://en.wikipedia.org/wiki/Wall_Street_Journal

http://en.wikipedia.org/wiki/Gujarati_language

http://en.wikipedia.org/wiki/Tata_Group

http://en.wikipedia.org/wiki/SI_prefix

http://en.wikipedia.org/wiki/Indian_economy


http://en.wikipedia.org/wiki/Ratan_Tata






http://en.wikipedia.org/wiki/Newsweek

http://en.wikipedia.org/wiki/Gridlock

http://en.wikipedia.org/wiki/Wall_Street_Journal

http://en.wikipedia.org/wiki/Gujarati_language


http://en.wikipedia.org/wiki/SI_prefix

http://en.wikipedia.org/wiki/Indian_economy










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pollution that it would cause (including criticism by Intergovernmental Panel on

Climate Changechairman Rajendra Pachauri). However,Tata Motorshas

promised that it would definitely release Nano's eco-friendly models alongside the

gasoline-model.

The Nano was originally to have been manufactured at a new factory in Singur ,

West Bengal, but increasingly violent protests forced Tata to pull out October

2008. (See Singur factory pullout below.) Currently, Tata Motors is reportedly

manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and another

plant has been proposed has also agreed to match all the incentives offered by

West Bengal government.

3.3 DESIGN


http://en.wikipedia.org/wiki/Pollution

http://en.wikipedia.org/wiki/Intergovernmental_Panel_on_Climate_Change


http://en.wikipedia.org/wiki/Rajendra_Pachauri


http://en.wikipedia.org/wiki/Gasoline

http://en.wikipedia.org/wiki/Singur

http://en.wikipedia.org/wiki/West_Bengal

http://en.wikipedia.org/wiki/Tata_Nano#Singur_factory_pullout

http://en.wikipedia.org/wiki/Pantnagar

http://en.wikipedia.org/wiki/Uttarakhand

http://en.wikipedia.org/wiki/File:Tata_Nano_.jpg

http://en.wikipedia.org/wiki/File:Tata_Nano_yellow.jpg

http://en.wikipedia.org/wiki/Pollution



http://en.wikipedia.org/wiki/Rajendra_Pachauri


http://en.wikipedia.org/wiki/Gasoline

http://en.wikipedia.org/wiki/Singur

http://en.wikipedia.org/wiki/West_Bengal

http://en.wikipedia.org/wiki/Tata_Nano#Singur_factory_pullout

http://en.wikipedia.org/wiki/Pantnagar

http://en.wikipedia.org/wiki/Uttarakhand



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Ratan Tata, the Chairman of Tata Motors, began development of the world's

cheapest production car in 2003, inspired by the number of Indian families with

two-wheeled rather than four-wheeled vehicles. The Nano's development has been

tempered by the company's success in producing the low cost 4 wheeled Ace truck

in May 2005.

Contrary to speculation that the car might be a simple four-wheeled auto rickshaw,

The Times of India reported the vehicle is "a properly designed and built car". The

Chairman is reported to have said, "It is not a car with plastic curtains or no

roof it's a real car."

To achieve its design goals, Tata refined the manufacturing process, emphasized

innovation and sought new design approaches from suppliers. The car was

designed at Italy's Institute of Development in Automotive Engineering with

Ratan Tata requesting certain changes, such as the elimination of one of two

windscreen wipers. Many components of the Nano are made in Germany by

Bosch, such as fuel injection, brake system, Value Motronic ECU, ABS and other

technologies.

The Nano has 21% more interior space (albeit mostly as headroom, due to its tall

stance) and an 8% smaller exterior compared to its closest rival, the Maruti 800.

Tata offered the car in three versions: the basic Tata Nano Std; the CX; and the

LX. The CX and LX versions each have air conditioning, power windows, and

central locking. Tata has set its initial production target at 250,000 units per year.



http://en.wikipedia.org/wiki/Tata_Ace

http://en.wikipedia.org/wiki/Auto_rickshaw

http://en.wikipedia.org/wiki/The_Times_of_India

http://en.wikipedia.org/wiki/I.DE.A_Institute

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/Bosch

http://en.wikipedia.org/wiki/Fuel_injection



http://en.wikipedia.org/wiki/Tata_Ace

http://en.wikipedia.org/wiki/Auto_rickshaw

http://en.wikipedia.org/wiki/The_Times_of_India

http://en.wikipedia.org/wiki/I.DE.A_Institute

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/Bosch

http://en.wikipedia.org/wiki/Fuel_injection




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3.4 COST CUTTING FEATURES

• The Nano's car boot does not open. Instead, the rear seats can be folded

down to access the boot.

• It has a single windscreen wiper instead of the usual pair.

• It has no power steering.

• The base model has only three lug nuts on the wheels instead of the usual

four.

• The base model has only one side view mirror.

• Some use of plastic and glue in place of welded steel

• Manually operated side windows

• Air conditioning/heating not part of base model

• Airbags not part of base model

3.5 PRICE

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 US$2000

(using exchange rate as of 22 March 2009)6 years ago, despite rapidly rising

material prices at the time.

As of August 2008, material costs had risen from 13% to 23% over the car’s

development, and Tata faced the choice of:


http://en.wikipedia.org/wiki/Car_boot

http://en.wikipedia.org/wiki/Power_steering

http://en.wikipedia.org/wiki/Lug_nut


http://en.wikipedia.org/wiki/Car_boot

http://en.wikipedia.org/wiki/Power_steering

http://en.wikipedia.org/wiki/Lug_nut




Tata Nano

• introducing the car with an artificially low price through government

subsidies and tax-breaks

• forgoing profit on the car

• using vertical-integration to artificially boost profits on cars at the expense

of their materials industries

• partially using inexpensive polymers or biodegradable plastics instead of a

full metal-body

• raising the price of the car

3.6 MODEL VERSIONS

Model Cost Features

Basic Tata Nano Standard 1,23,000 No extras

Deluxe Tata Nano CX 1,51,000 Air conditioning

Tata Nano LX 1,72,000 Air conditioning, power windows,

fabric seats & central locking

Nano Europa -- All the above plus a larger body,

bigger 3-cylinder engine, anti-lock

braking system



http://en.wikipedia.org/wiki/Biodegradable_plastic

http://en.wikipedia.org/wiki/Biodegradable_plastic



Tata Nano

ANALYSIS AND DATA INTERPRETATION

AGE GROUP RESPONDENTS

This table shows that the different age group of respondents

TABLE NO: 1

(N=50

AGE

GROUP

NUMBER OF

RESPONDENTS

Percentage

18-25 5 10 %

25-35 11 22 %

34-40 12 24 %

45 & above 22 44 %

Total 50 100%

Source (Primary Data)

Analysis

The above table shows that majority of respondents fall in the category age

group of 45 & above followed by 24% the age group of 34 to 40 ; 22% in

the age group of 25 to 35 & lastly 10% in the age group of 18-25.




Tata Nano

Graph -1

Inference

It can be concluded that majority of the respondents surveyed belonged to

the age group of 45 and above.


5

11 12

22

0

5

10

15

20

25

a b c d

40 & above

35-40

25-35

18-25



Tata Nano

QUALIFICATION OF RESPONDENTS:

This table shows the qualification of respondents

TABLE NO: 2

(N=50)

QUALIFICATION NUMBER OF

RESPONDENTS

Percentage

Under graduate 14 28 %

Graduate 10 20 %

Post- graduate 16 32 %Others 10 20 %

Total 50 100%Source (Primary Data)

Analysis

The above table presents the distribution of the respondents on their

educational qualification. The above table shows that 14 respondents are

under graduate, 10 respondents are graduate & 16 are post-graduate and 10

respondents constitute others.




Tata Nano

Graph -2

Inference

Thus it can be inferred that majority of the car owners are post-graduate and

under graduate, so it is clear that most of the customer are educated. Thus it

is easy to understand about the product and take the right decision.


14

10

16

10

0

2

46

8

10

12

14

16

a b c d

others

post-graduate

graduate

under graduate



Tata Nano

MONTHLY INCOME OF RESPONDENTS:

This table shows the monthly income of respondents

TABLE NO: 3

(N=50)


Analysis

As Tata Motors boasts to give cars to its customers for least price in India so

maximum its preferred by middle class being 34% of them as their owners.

In India majority of the population belong to middle income group, the fact

that this sector prefers Tata cars the most as indicated by the study reveals

M.S. Ramaiah College of Arts, Science & Commerce

MONTHLY

INCOME

NUMBER OF

RESPONDENTS

Percentage

20000-30000 10 20 %

30000-40000 17 34 %

40000-50000 14 28 %

50000 & Above 9 18 %

Total 50 100%

32



Tata Nano

that Tata Nano is a vehicle for middle income group with its wide spread

sales penetration in Indian market

Graph – 3

Inference

It can be inferred that majority of the respondents had an monthly income of

Rs. 30,000-40,000.


10

17

14

9

0

2

4

6

8

10

12

14

16

18

a b c d

25,000 & above

20,000-25,000

15,000-20,000

10,000-15,000



Tata Nano

OCCUPATION OF RESPONDENTS:

This table shows the occupation of the respondents

TABLE NO: 4

(N=50)

OCCUPATION NUMBER OF

RESPONDENTS

Percentage

Student 2 4 %

Service 14 28 %

Business 21 42 %

Professional 13 26 %

Total 50 100%


Analysis

The statistical data reveal that majority are in business class being 42%,

service sector 28%, professional being 26% and also owned by 4% students.




Tata Nano

It shows that it has favorable impact on respondents who are in service

sector.

Graph -4

Inference

Thus it can be inferred that majority of respondent fall in the occupation of

business followed by service & professional occupation.


2

14

21

13

0

5

10

15

20

25

A B C D

PROFESSIONAL

BUSINESS

SERVICE

STUDENT



Tata Nano

TABLE SHOWING THE MODEL OF CAR OWNED BY T

RESPONDENTS

TABLE NO: 5

(N=50)

Model NUMBER OF

RESPONDENTS

Percentage

Tata Indica 4 8 %

Maruthi Zen 10 20%

Maruthi Alto 16 32%

Tata Nano 7 14%

Hyundai Santro 11 22%

Others 2 4%

Total 50 100%


Analysis




Tata Nano

The statistics show that 32% of the respondents owned a Maruthi Alto, 22%

of the respondents owned Hyundai Santro, closely 20% of them owned

Maruthi Zen, 14% of them owned Tata Nano, 8% owned Tata Indica and 4%

of them owned other brand of cars.

GRAPH NO: 5

GRPAH SHOWING THE MODEL OF CAR OWNED BY T

RESPONDENTS

8%

20%

32%

14%

22%

4%

0%

5%

10%

15%

20%

25%

30%

35%

Tata Indica Maruthi Zen Maruthi Alto Tata Nano Hyundai Santro Others

Inference




Tata Nano

It can be inferred from the above graph that majority of the respondents

owned a Maruthi Alto car.

AVERAGE KILOMETER TRAVELLED PER DAY

TABLE NO: 6

(N=50)

Kms TRAVELLED NUMBER OF

RESPONDENTS

Percentage

15-25 9 18 %

25-40 17 34 %

40-55 8 16 %

55 & above 16 32 %

Total 50 100%


Analysis

The statistics reveal that 34% respondent’s traveled around 25-40 Kms per

day, 32% of respondents traveled 55 and above Kms/day. 18% of them




Tata Nano

traveled around 15-25 kms per day and rest 16% traveled around 40 to 55

kms per day.

Graph – 6

18%

34%

16%

32%

0%

5%

10%

15%

20%

25%

30%

35%

15-25 25-40 40-55 55 & above

Inference

It can be inferred that on an average the respondents traveled 25 to 40

kilometers. It can be concluded that the users of cars traveled within the city

limits.




Tata Nano

USAGE PURPOSE BY RESPONDENTS

This table shows the usage of vehicle for different purposes

TABLE NO: 7

(N=50)

PURPOSE NUMBER OF

RESPONDENTS

Percentage

COLLEGE 1 2 %

OFFICE 18 36 %

JOB 7 14 %

OTHERS 24 48 %

Total 50 100%


Analysis




Tata Nano

It can be analyzed that most of the respondents used the cars for office

purpose i.e. 36%. 48% of them used it for other purposes and 14% of them

used it for job purpose.




Tata Nano

Graph -7

Inference

It can be inferred from the above graph that on an average respondents used

the car for going to office and other purposes.

TABLE SHOWING HOW THE RESPONDENTS CAME TO KNOW

ABOUT TATA NANO


1

18

7

24

0

5

10

15

20

25

a b c d

OTHERS

JOB

OFFICE

COLLEGE



Tata Nano

TABLE NO: 8

(N=50)

Sources NUMBER OF

RESPONDENTS

Percentage

Media (TV, Radio, Newspaper) 23 46%

Hoarding 4 8%

Word-of-Mouth 11 22%

Auto Magazine 5 10%

Others 7 14%

Total 50 100%


Analysis

The above table shows that majority of the respondents i.e. 46% of them

came to know about Tata Nano through media which includes TV, radio and

newspapers, 22% of them knew through word-of-mouth, 10% were aware

through auto magazine and 8% through hoarding.

GRAPH NO: 8




Tata Nano

GRAPH SHOWING HOW THE RESPONDENTS CAME TO KNOW

ABOUT TATA NANO

46%

8%

22%

10%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Media (TV, Radio, Newspaper)

Hoarding

Word-of-Mouth

Auto Magazine

Inference

Awareness level among the respondents about Tata Nano was mainly

through television, radio and newspaper.

TABLE SHOWING REASONS FOR PREFERRING TATA NANO




Tata Nano

TABLE NO: 9

(N=50)

Reasons NUMBER OF

RESPONDENTS

Percentage

Brand Name 9 28%Pricing 35 70%

Fuel Efficiency 2 4%

Looks 2 4%

Comfort 1 1%

Others 1 0%


Analysis

The above table shows that a large majority of the respondents i.e. 70% of

them prefer to go for Tata Nano because of its pricing, 28% went upon the

brand name of Tata Nano, 4% each preferred it due to fuel efficiency and

looks and 1% of them preferred it due to the comfort level.

GRAPH NO: 9

GRAPH SHOWING REASONS FOR PREFERRING TATA NANO




Tata Nano

28%

70%

4%

4%

1%

0%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Brand Name

Pricing

Fuel Efficiency

Looks

Comfort

Others

Inference

Awareness level among the respondents about Tata Nano was mainly

through television, radio and newspaper.

TABLE SHOWING WHETHER DEMONSTRATION OF TATA

NANO WAS GIVEN TO THE RESPONDENTS

TABLE NO: 10

(N=50)




Tata Nano

Response NUMBER OF

RESPONDENTS

Percentage

Yes 46 92%

No 4 8%


Analysis

The above table shows that according to a large majority of the respondents

i.e. 92% of them revealed that the demonstration of Tata Nano car was given

to them while 8% of reacted negatively.

GRAPH NO: 10

GRAPH SHOWING WHETHER DEMONSTRATION OF TATA

NANO WAS GIVEN TO THE RESPONDENTS




Tata Nano

Yes

92%

No

8%

Inference

The above graph reveals that most of the respondents got a demonstration of

Tata Nano car.

TABLE SHOWING WHETHER THE RESPONDENTS ARE

SATISIFED WITH THE COLORS OF TATA NANO

TABLE NO: 10




Tata Nano

(N=50)

Response NUMBER OF

RESPONDENTS

Percentage

Yes 39 78%No 11 22%

Total 50 100%


Analysis

The study reveals that 78% of customers are very well satisfied with the

available colors, while 22% of customers are not satisfied with colors.

GRAPH NO: 10

GRAPH SHOWING WHETHER THE RESPONDENTS ARE

SATISIFED WITH THE COLORS OF TATA NANO




Tata Nano

DISPOSING NUMBER OF

RESPONDENTS

Percentage

Yes 19 38%

No 31 62%

Total 50 100%

Analysis

The study reveals that 62% of customers do not have any plans of disposing

the present model. Still a good majority i.e. 38% of them like to dispose of

the present model and go for Tata Nano.

GRAPH NO: 11

GRAPH SHOWING WHETHER THE RESPONDENTS ARE

PLANNING TO DISPOSE THE EXISTING MODEL AND GO FOR

TATA NANO




Tata Nano

Yes

38%

No

62%

Inference

It can be inferred that majority of the respondents did not have an intention

to dispose of the present model they own.

TABLE SHOWING THE NO. OF FREE SERVICES EXPECTED BY

THE RESPONDENTS FROM THE COMPANY / DEALER

TABLE NO: 12

(N=50)




Tata Nano

No. of Services NUMBER OF

RESPONDENTS

Percentage

1 to 5 14 28%

5 to 10 31 62%

10 to 15 5 10%

Total 50 100%


Analysis

The study reveals that 62% of the respondents expect at least 5 to 10 free

services from the company / dealers, 28% of them expected 1 to 5 free

services while 10% of them expected 10 to 15 free services.

GRAPH NO: 12

GRAPH SHOWING THE NO. OF FREE SERVICES EXPECTED BY

THE RESPONDENTS FROM THE COMPANY / DEALER




Tata Nano

1 to 5

28%

5 to 10

62%

10 to 15

10%

Inference

It can be inferred that majority of the respondents expected atleast 5 to 10

free services from the company / dealer.

TABLE SHOWING ROAD PERFORMANCE OF TATA NANO WITH

REGARD TO COMFORT LEVEL.

TABLE – 13




Tata Nano

(N=50)

Comfort Level No. of Respondents Percentage

Excellent 10 20

Good 29 58

Average 07 14

Bad 04 8Total 50 100


Analysis

The above table shows that 58% of the respondents had a good review about the

comfort level of Tata Nano. 20% of them had an excellent review about the comfort

of Tata Nano. 14% of them rated the comfort of Tata Nano as average and 8% of

them rated it as bad.

GRAPH – 13

GRAPH SHOWING ROAD PERFORMANCE OF TATA NANO WITH

REGARD TO COMFORT LEVEL.




Tata Nano

20

58

14

8

0 10 20 30 40 50 60

Excellent

Good

Average

Bad

Inference

From the analysis we can infer that majority of the respondents had an good review

about the comfort level of the Tata Nano.


REGARD TO TECHNICAL FEATURES

TABLE – 14

(N=50)




Tata Nano

30

45

8

2

0 5 10 15 20 25 30 35 40 45

Excellent

Good

Average

Bad

Inference

From the analysis we can infer that majority of the respondents had an good and

excellent review about the technical features of the Tata Nano vehicle.


REGARD TO FUEL EFFICIENCY

TABLE – 15

(N=50)




Tata Nano

Fuel Efficiency No. of Respondents Percentage

Excellent 09 18

Good 19 38

Average 17 34

Bad 05 10

Total 50 100


Analysis

The above table shows that 38% of the respondents had a good review about the fuel

efficiency of Tata Nano. 34% of them rated the fuel efficiency of Tata Nano as

average, 18% of them rated it as excellent and the rest 10% of them rated it as bad.

GRAPH – 15

GRAPH SHOWING ROAD PERFORMANCE OF TATA NANO WITH

REGARD TO FUEL EFFICIENCY




Tata Nano

18

38

34

10

0 5 10 15 20 25 30 35 40

Excellent

Good

Average

Bad

Inference

From the analysis we can infer that majority of the respondents had an good and

average review about the fuel efficiency of Tata Nano. This is one of the area

where the company has to improve a lot, because mileage is an important factor for

giving sales satisfaction to a customer.

TABLE SHOWING MECHANICAL PROBLEMS OF TATA NANO

TABLE – 16

(N=50)




Tata Nano

Mechanical Problems No. of Respondents Percentage

None 43 86

Sometimes 5 10

Breaks Down Quite Often 2 4

Total 50 100


Analysis

The above table shows that a large majority of the respondents i.e. 86% of them had

no mechanical problems with their Tata Nano, 10% told sometimes they had, while

4% of them had break down quite often.

GRAPH – 16

GRAPH SHOWING MECHANICAL PROBLEMS OF TATA NANO




Tata Nano

43

5

2

0

5

10

15

20

25

30

35

40

45

None Sometimes Breaks Dow n Quite Of ten

Inference

From the analysis we can infer that majority of the respondents had no mechanical

problems with their Tata Nano.

TABLE SHOWING WHETHER REGULAR MAINTENANCE IS

REQUIRED FOR TATA NANO

TABLE – 17

(N=50)




Tata Nano

Regular Maintenance No. of Respondents Percentage

Required 14 28

Breaks Down Very Rarely 36 72

Total 50 100


Analysis

The above table shows that a large majority of the respondents i.e. 72% of them

suggest that their Tata Nano breaks down very rarely so regular maintenance is not

required. The remaining 28% of them feel they require regular maintenance of the

car.

GRAPH – 17

GRAPH SHOWING WHETHER REGULAR MAINTENANCE IS

REQUIRED FOR THEIR TATA NANO




Tata Nano

Required

28%

Breaks Down Very Rarely

72%

Inference

From the analysis we can infer that majority of the respondents had breakdowns

very rarely so they don’t require regular maintenance for their Tata Nano.

TABLE SHOWING RATING OF THE PRICES OF SPARE PARTS OF TATA

NANO

TABLE – 18

(N=50)

Rating No. of Respondents Percentage




Tata Nano

Economical 13 26

Reasonable 37 74

Expensive 0 0

Total 50 100%


Analysis

The above table shows that according to majority of the respondents i.e. 74% of

them revealed that the prices of spare parts of Tata Nano is reasonable while the

remaining 26% of them rated the prices of spare parts as economical.

GRAPH – 18

GRAPH SHOWING RATING OF THE PRICES OF SPARE PARTS OF TATA

NANO.




Tata Nano

26

74

00

10

20

30

40

50

60

70

80

Economical Reasonable Expensive

Inference

It can be inferred from the table and analysis that the prices of spare parts of Tata

Nano are reasonable.

TABLE SHOWING WHETHER THE RESPONDENTS ARE SATIIFED WITH

TATA NANO

TABLE – 19

(N=50)




Tata Nano

Opinion No. of Respondents Percentage

Yes 46 92

No 08 8

Total 50 100%


Analysis

The above table reveals that a very large majority i.e. 92% of the respondents were

highly satisfied with Tata Nano, while only 8% of them were not satisfied.

.

GRAPH – 19




Tata Nano

GRAPH SHOWING WHETHER THE RESPONDENTS ARE SATIIFED

WITH TATA NANO

Inference

It can be concluded that satisfaction level of the respondents regarding the Tata

Nano is very high

SUMMARY OF FINDINGS


Yes

85%

No

15%



Tata Nano

1. Firstly majority numbers of respondents are present in the age group of 40

& above. This implies utmost importance & care should be given to their

age group.

2. The majority number of respondents falls in business category. Who use the

vehicles much more than others special importance must be given to this

people.

3. The majority of respondents use the vehicle for other purposes and who also travel

longer distances will have an idea of changing the vehicle.

4. Most of the respondents are very well satisfied with the available colors and

they have also overall satisfied with the product the respondents have

strong value in their mind.

5. Most of the respondents through advertisement came to be known about

dealership network. Special importance is to be given to advertisements.

Through visibility came to know about the product utmost

6. Majority of respondents says that product briefing was not provided

properly, test drive was not provided and lack of financial schemes

provided by the company.

7. Almost all the respondents say that cost of spares is high and

medium (middle class people) and some of the respondents say

that it is low (upper class people).




Tata Nano

8. Majority of the respondents had seen the demonstration of the Tata

Nano before purchasing.

9. Majority of the respondents expected 5 to 10 free services by the

company / dealer.

10. Surveyed respondents had a good and average review about the

fuel efficiency of Tata Nano.

11. Majority of the respondents had no mechanical problems with their

Tata Nano.

12. Majority of the respondents had breakdowns very rarely so they

don’t require regular maintenance for their Tata Nano.

13. The survey revealed that the satisfaction level of the respondents

regarding Tata Nano is very high.




Tata Nano

SUGGESTIONS & CONCLUSION

Based on the findings of the study conducted following suggestions are

offered:

- To give a 100% sales satisfaction the company should introduce

new schemes / offer / gift.

- The company / dealers should try and give its customers more no.

of free services.

- The company / dealers should be more prompt and quick in

delivering the car so as to gain good reputation in the means of

sales & after sales service.

- Customers though are satisfied in general with the interiors, but

many of them would love to have a more luxurious feel to them.

- Displays should be made in public places like shopping malls,

exhibitions, main streets of the cities so that customers come to

know about the product very easily.




Tata Nano

- Should appoint more number of dealers and the showrooms should

be designed in such a way that it attracts the pro

customers.

- Company should provide training to the sales person so that they

can convince the buyers and get more sales.

- Should provide test drive facilities and bank loans so that the

prospective buyers get desire to go for the product a

influences the buyer to buy it.




Tata Nano

CONCLUSIONS

From the survey its clear that customers are highly satisfied with Tata

Nano its new technology, pricing, outlook, fuel efficien

comfortability and road performance.

The study revealed that advertising media was being referred before

purchasing a vehicle and most of the customers like to g

demonstration before purchasing it.

The company needs to give more number of services to satisfy its

customers and also needs to increase the fuel efficiency, this is one of

the area where the company has to improve a lot, because mileage is an

important factor for giving sales satisfaction to a customer.




Tata Nano

BIBLIOGRAPHY

Books Referred

1. Marketing Management, Philip Kotler, Prentice Hall of India Pvt. Ltd., 2003.

2. Consumer Behavior, Suja R. Nair,. Himalaya Publishing House, 2004.

3. C.R. Kothari, “Research Methodology (Methods & Techniques)”,

1995, Wishwa Prakashan.

4. Donald R. Cooper & Pamela S. Schindler, “Research Methodology”,

1999, Tata MacGraw Hill.

5. Schiffman, “Consumer Behaviour”, 2000, Tata MacGraw Hill.

Journals & Magazines

1. Overdrive

2. Indian Journal

3. The Economic Times

4. Auto Car

5. Company Journal Web-sites

1

wasim (final)

Documents