Tata Nano

Introduction

• Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the Indian company Tata Motors

• This nickname is due to the Nano's price point, nearly 100,000

• Less expensive after the road tax, service tax & the other registration fees.

• Greatest strengths of Nano is its tiny price tag.

Pricing

• It used plastic and adhesive instead of welding.• No AC, No power steering, No Air bags, No power

window.• Used inexpensive polymers or biodegradable plastics

instead of a full metal-body.• 624 cc 2 cylinder engine.

Price of different models

• Tata Nano Base model Rs. 135000

• Tata Nano CX Rs.164481

• Tata Nano LX Rs.186498

Controversy of increased price

• Price increased as increase in input cost. especially metal.

• Increase in excise duty after union budget of 2010.

Planning & StrategyQuestionnaire

• Discussion with Decision maker

• Interview with Expert• Secondary data Analysis• Quantitative Research

with 10 people

Hypothesis after research

• Nano is safe for driving• Conversion of Nano to a

Taxi; do not affect the brand image & consequently sales.

• Hike in sales do not affect sales

• Prefer Nano instead of two wheeler

• People can wait for 2 months

Could have also included

• It should not have waiting period• Ratan Tata’s statement : Promise is a promise• Exchange offer• Safety measures can be enhanced because it is a prime

concern while purchases• Customization

Consumer behaviourNeed Recognition

68%8%

24%

Classification of consumer need

safetyNeedEsteem

Consumer behaviourInformation Search

22%

66%

12%

Preference of channel of information

TV

Reference Group

Magzine

Consumer behaviourEvaluation of alternative

• After collecting the information, consumers arrive at some conclusion about the product

• In this stage consumers are comparing different brands based on set parameters which he or she thinks required in the product

• Since it is clear from the above data that majority of the people are buying the car driven by safety need

Consumer behaviourPurchase decision

• In this stage consumer buy the most preferred brand• The decision of making the particular brand is made

after consumer conviction over the alternative product• There are two factors which are making people to

postpone the purchase of Tata Nano.– Lack of information– Diffusion Process

Consumer behaviourPost purchase evaluation

• After purchasing the product consumer will experience some level of satisfaction and dissatisfaction

22% Satisfied 78% DissatisfiedSatisfaction:

Safety: 8o% Average Safe 20% Equally safe

Consumer behaviourRole of impulse purchase in decision making process

• An impulse purchase or impulse buy is an unplanned decision to buy a product or service, made just before a purchase

• The research has shown that buying a Tata Nano falls under complex buying behaviour despite the low price

• The research has also shown that people wait for 1 to 2 year before buying the product like Tata Nano

Consumer behaviourTarget Audience

• Who will buy the Tata Nano?

First Car Second Car12

88

consumer preference of Tata Nano

Consumer behaviourStrengthCheapestEco-FriendlyFuel Efficiency & EngineStylish

WeaknessNO MORDEN FACILITIES- ABS, PS, AC etcNot suitable hilly areasPoor engine cooling & hence overheatingSmall tyres and fiber body

OpportunitiesCost ControlParking SpaceLow MaintenanceWorld Wide AppealCreated a Niche market

ThreatsTraffic CongestionCost may increase in FutureBad impression due to late date in marketSecurity not secureCompetitors – HYUNDAI, BAJAJ, GM

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