TATA NANO

Tata Nano…: 

Tata Nano … The ONE lakh car that drives ONE billion dreams…

Delhi School of Management: 

Delhi School of Management Case Study on Tata Nano Prof. Incharge: Dr. P.K. GUPTA Presented by : Ashish Marwah(13/MBA) Chandra Shekhar Sharma(17/MBA) Gagan Gupta(20/MBA) Kshitij Sharma(25/MBA) Sanchit Agrawal(49/MBA) Friday, November 27, 2009 2 Marketing Management

Table of Contents: 

Table of Contents S.No . Topic Slide No. 1 About Tata Motors 4 2 Significant Mergers & Acquisitions 6 3 Vision of the Company 7 4 Idea Generation 8 5 Tata Nano – Project 9 6 Marketing Mix(4 P’s) 10 7 What makes Tata Nano so cheap? 12 8 What Tata Nano offers? 13 9 Product Life Cycle Curve 14 10 SWOT Analysis 15 11 Comparison between Tata Nano & Maruti 800 17 12 Question &Answers 18 Friday, November 27, 2009 3 Marketing Management

About Tata Motors: 

About Tata Motors History :- Established in 1945 . India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09 . Over 4 million Tata vehicles ply on Indian roads. The first company from India's Engineering Sector to be listed in the New York Stock Exchange (September 2004) Friday, November 27, 2009 4 Marketing Management

(contd…): 

(contd…) The company's manufacturing base in India is spread across:- Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar ( Uttarakhand ) Dharwad (Karnataka). Tata Motors has operations in the UK, South Korea, Thailand and Spain as well. Friday, November 27, 2009 5 Marketing Management

Significant Mergers & Acquisitions: 

Significant Mergers & Acquisitions Jaguar Land Rover, a business comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009. In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand . Friday, November 27, 2009 6 Marketing Management

Vision of the Company: 

Vision of the Company Best in the manner in which we operate. Best in the products we deliver. Best in our value system and ethics. Friday, November 27, 2009 7 Marketing Management

Idea Generation: 

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 Friday, November 27, 2009 8 Marketing Management

Tata Nano – Project : 

Tata Nano – Project Lead by Girish Wagh ( General Manager, Tata Motors Ltd.) Began in 2003 Objective was to create very low cost transportation system with four wheels The car was designed at Italy's Institute of Development in Automotive Engineering A team of 500 engineers worked on it Faced political obligations in Singur Shifted to Pantnagar, Uttarakhand Came out with world’s cheapest car in July, 2009 Till date 10,518 units on road Friday, November 27, 2009 9 Marketing Management

Marketing Mix(4 P’s): 

Marketing Mix(4 P’s) Product : An impeccable vehicle, covering all segments of the market, from youngsters to senior citizens. Attractive, small yet comfortable. Price : Offering the lowest price in this segment, requires no comments. Friday, November 27, 2009 10 Marketing Management

(contd…): 

(contd…) Place (distribution): With the existing Tata dealers and roping in its other business lines like Westside, Croma , Titan stores, the distribution was never an issue for Nano. Promotion : Coming from the Tata’s stable, the Nano has already created a brand image. The price of the car has offered enough promotion not only in India but also globally. Friday, November 27, 2009 Marketing Management 11

.: 

. Friday, November 27, 2009 12 Marketing Management

What Nano offers..?: 

What Nano offers..? A roomy passenger compartment with generous leg space and head room. Seating capacity of four. Safety performance exceeds regulatory requirements in India. Eco friendly High fuel efficiency. Friday, November 27, 2009 13 Marketing Management

Product Life Cycle Curve: 

Product Life Cycle Curve Friday, November 27, 2009 14 Marketing Management

SWOT Analysis: 

SWOT Analysis STRENGTHS WEAKNESS First innovation – set a benchmark 7 Cheapest & Stylish 6 Eco-friendly – green house effect 5 Fuel-efficiency & engine 5 Space – Internal - 21% more than M-800 5 External - 8% less than M-800 +28 No passenger side mirror - 4 Low quality seat - 3 Poor engine cooling & hence overheating - 2 Not fit for hilly terrain - 3 -12 OPPORTUNITIES THREATS Diesel & electric variant 3 Created a niche market 4 Recession 4 Parking space 5 +16 Traffic congestion - 3 Security not sure - 4 Bad impression due to late delivery in market -2 Competitors – Bajaj , Renault & Nissan -2 Rising cost of raw material - 7 - 18 Overall +44 -30 Overall Final Rating = +28+16-12-18 = +14 Friday, November 27, 2009 15 Marketing Management

Tata Nano - Specifications: 

Tata Nano - Specifications Length:- 3.1 m Wide:- 1.5 m Height:- 1.6 m Weight:- 600 kg Mileage:- 20 km/l Fuel tank:- 15 l Engine:- 624 cc Ground clearance:180mm Gear box:- 4-speed Friday, November 27, 2009 16 Marketing Management

Compare…. Tata nano Maruti 800: 

Compare…. Tata nano Maruti 800 Engine:-624cc, petrol. Transmission:-4 forword,1-reverse,manual. Max power:-34.5 bhp @ 5250 rpm. Performance:- 0-60 kph:8.66 sec and 0-100 kph:31.3 sec. Top speed:- 70 km/h. Mileage(overall):- 20 km/l. Price:- 123360 to 172360 (Ex showroom, Delhi) Engine:-796cc, petrol. Transmission:-4 forword,1- reverse, manual. Max power:-37 bhp @ 5000 rpm. Performance:- 0-60 kph: 8.1 secs. And 0-100 kph:26.3 secs. Top speed:- 130 kmph. Mileage(overall):- 16 kmpl. Price:- 1.97 lakh onwards. Friday, November 27, 2009 17 Marketing Management

Questions & Answers: 

Questions & Answers Q1 Do you agree that Tata would be able to maintain the committed price? Friday, November 27, 2009 Marketing Management 18

A.1 : 

A.1 No. It would be difficult for Tata Motors to maintain the committed price of Nano because of:- Rising prices of steel and other raw materials from 13% to 23% since Aug’08(Development Phase). Inclusion of total vehicle crash testing system comprising airbags, antilock breaking system will increase the price. Friday, November 27, 2009 Marketing Management 19

(contd…): 

(contd…) Just delivering to complete the promise. Loss of about 1200 crores due to shifting of manufacturing unit from Singur to Pantnagar. Not compliant to Euro IV emission standards. Current price itself exceeds 1 lakh. Friday, November 27, 2009 Marketing Management 20

(contd…): 

(contd…) Because of the already mentioned reasons Tata Motors were left with the following choices:- Introducing the car with an artificially low price through government subsidies and tax-breaks forgoing profit on the car. Partially using inexpensive polymers or biodegradable plastics instead of a full metal-body. Rising the price of the car. Friday, November 27, 2009 Marketing Management 21

Price list… (Ex showroom price in Delhi): 

Price list … ( Ex showroom price in Delhi ) TATA nano std (BS3) Rs-123360 TATA nano cx solid paint (BS3) Rs-148360 TATA nano cx metallic paint (BS3) Rs-151360 TATA nano LX metallic paint (BS3) Rs-172360 Friday, November 27, 2009 22 Marketing Management

Slide 23: 

Q2 What marketing strategy you would recommend ? Friday, November 27, 2009 23 Marketing Management

Current Marketing Strategies: 

Current Marketing Strategies ONLINE STRATEGIES 1) Website: www.tatanano.com 2) Social Media: a) Blog b) Orkut c) Facebook d) YouTube Friday, November 27, 2009 24 Marketing Management

(contd…): 

(contd…) 3) Nano Game: The game by Zapak was a great move to spread word about the car and it seems to have really worked well in doing it's job. 4) Online Advertisements: The blogosphere and indian media sites were inundated with ads for Tata Nano. The ads came in all shapes and sizes and were definitely noticed. Friday, November 27, 2009 25 Marketing Management

(contd…): 

(contd…) OFFLINE STRATEGIES 1) Collaborations: Tata partnered with a few banks for releasing application forms. 2) Mall Promotions: Models on display 3) Leveraging Existing Infrastructure: Now you can find Nano merchandise(eg. Nano watches, Nano T-shirts), application forms and demo cars in Tata Indicom , Titan, Croma and Westside stores. Friday, November 27, 2009 26 Marketing Management

Proposed Marketing Strategies: 

Proposed Marketing Strategies Extensive marketing approach through TV commercials & print media. Involving a brand ambassador to save it’s image(recently marred by short-circuit incidents). Tapping the commercial service( eg . Taxi,auto ) market through attractive exchange & finance schemes. More investment in R&D to come up with more innovative features & to eliminate shortcomings as well. Friday, November 27, 2009 Marketing Management 27

References: 

References Mr. Arun Kumar Gupta of Rasanbik Engg. Industries India Ltd. (vendor of Tata Nano) www.tatanano.com www.google.co.in www.wikipedia.com www.autosmaxabout.com Friday, November 27, 2009 28 Marketing Management

Slide 29: 

Friday, November 27, 2009 Marketing Management 29