CHAPTER - 1

INTRODUCTION

1

Automobile Industry in India

The automotive industry in India is one of the larger markets in the world and had

previously been one of the fastest growing globally, but is now seeing flat or negative growth

rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest

in the world, with an annual production of more than 3.9 million units in 2011. According to

recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer

in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy,

Canada, Mexico, Russia, Spain, France, Brazil) , grew 16 to 18 per cent to sell around three

million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest

exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat

Thailand to become Asia's third largest exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the

second (after China) fastest growing automobile market in the world in that year. According

to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to

increase to 4 million by 2015, no longer 5 million as previously projected.

2

TATA MOTORS

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 is 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 was established in 1945, when the company began manufacturing locomotives.

The company manufactured its first commercial vehicle in 1954 in a collaboration with

Daimler Benz AG, which ended in 1969 Tata Motors was listed on the NYSE in 2004, and in

2005 it was- ranked among the top 10 corporations in India with an annual revenue exceeding

INR 320 billion. In 2004, it bought Daewoo's truck manufacturing unit, now known as Tata

Daewoo Commercial Vehicle, in South Korea. It also, acquired a 21% stake in Hispano

Carrocera SA giving it controlling rights in the company. Tata Motors launched the Tata

Nano, noted for its Rs100,000 price-tag, in January 2008.

In March 2008, it finalized 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 2 June 2008 Tata Motors has its manufacturing base

in Jamshedpur, Pantnagar, Lucknow, Ahmadabad and

Pune.

3

1. History

Tata Motors launches its first truck in collaboration with Mercedes-Benz. Tata Motors is a

part of the Tata and Sons Group, founded by Jamshedji Nussarwanji Tata and J Baker. The

company was established in 1945 as a locomotive manufacturing unit and later expanded its

operations to commercial vehicle sector in 1954 after forming a joint venture with Daimler-

Benz AG of Germany.

Tata Motors Limited is India's largest automobile company, with consolidated revenues of

INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in

each segment, and among the top three in passenger vehicles with winning products in the

compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and

bus manufacturer.

Tata Motors is the 18th largest vehicle manufacturer in the world. It also won the coveted

title of 'India's most reliable brand' in an annual survey (2010) organized by Brand Finance

and the Economic Times. Tata formed a joint venture with the German automobile brand

Daimler-Benz in 1954, which marked its venture into the commercial vehicle segment. And

after establishing supremacy in that segment, Tata Motors then forayed into the passenger

vehicle segment in 1991. Their first passenger vehicle to enter the Indian automobile world

was the Tata Estate, which went out of production due to its underpowered engine, even

though it was quite an advanced car for its time. However, it was the multi-utility vehicle

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Tata Sierra that really marked the entry of Tata cars in India. And even though its

collaboration with Daimler-Benz ended in 1969, Tata Motors went on to become the world's

fourth-largest truck manufacturer and second-largest bus manufacturer in terms of volume.

Tata Motors took their promise and legacy of innovation a step further with the launch of the

Tata Nano in 2009. With an initial price tag of Rs 1 lakh, Tata Nano is the least expensive

production car in the world.

Tata Motors' presence spreads across the entire nation with manufacturing and assembly

plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune. With over 7.5

million Tata cars in India, Tata Motors also provides the best service to its customers through

a wide network of about 3, 500 dealerships, sales, services, and spare parts touch points.

Tata has 15 car models available in India. The available models are Tata Nano,Tata Indica

eV2,Tata Indica Vista, Tata Venture, Tata Indigo CS,Tata Sumo,Tata Manza,Tata Indigo

XL,Tata Sumo Grande,Tata Winger,Tata Winger Platinum,Tata Safari,Tata Xenon XT,Tata

Aria,Tata Safari Storme,. The minimum priced model of Tata is Tata Nano priced at Rs

1,41,898.

5

TATA NANO

AN INTRODUCTION

Tata Nano - THE PEOPLE’S CAR- is a comfortable, safe, all-weather car, high on fuel

efficiency & low on emissions. The Tata Nano is a city car manufactured by Tata Motors.

Made and sold in India, the Nano is the cheapest car in the world today. Before it went on

sale, a price of 1 lakh (US$1,800) was widely touted. Since its 2009 debut, the price has

increased. Nevertheless, the Nano remains the lowest-cost four-wheeled passenger vehicle in

India.

“I observed families riding on two- wheelers -- the father driving the scooter, his young kid

standing in front of him, his wife seated behind him holding a little baby. Add to that the

slippery roads & Night time too. It is downright dangerous. It led me to wonder whether

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

said Mr Ratan Tata, the chairman of Tata Motors, who laid the foundation for creation of

the World’s cheapest car.

Providing a car worth rupees one lakh was the dream of the chairman of Tata Motors, Mr.

Ratan Tata. And with high qualified IT skills he has shown the Indian talent to the whole

world.

The advent of Nano represents a victory for those who advocate making cheap goods for

potential customers at the "bottom of the pyramid" in emerging markets. Most of all, it gave

millions of people, now relegated to lesser means of transportation, the chance to drive cars.

The project has literally become India's claim-for-fame in the international-media due to Tata

Motors' innovation in developing the car, as well as keeping it low in price. The car itself is

expected to boost the Indian Economy, create entrepreneurial-opportunities across India, as

well as expand the Indian car market by 65%.

The Tata Nano is a proposed city car debuted by India's Tata Motors at the 9th annual Auto

Expo on January 10, 2008 at Pragati Maidan in New Delhi, India. Called the people’s car in

Tata's promotional material, it was projected to be the least expensive production car in the

world. The standard version of the Nano is projected to sell for Rs. 100,000 (approximately

US $2500, GBP 1277, or € 1700) , not including fees or delivery. Newsweek identifies the

6

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 confirms a global trend toward

small cars, led by the Nano.

The prefix "Nano" derives from the Greek root 'nanos', meaning dwarf — as with nanometer.

"Nano" also means "small" in Gujarati, the native language of the Tata family, founders of

the Tata Group.

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FEATURES OF TATA NANO

a) Stylish and Comfortable

The Passenger Car, designed with a family comfortable in mind, has a luxury passenger space

with superb leg space and head room. It can luxury sit 4 persons. 4 doors with excellent

seating perfection make ingress and egress easy.

with a measuring length of 3.1 meters, width of 1.5 meters and a height of 1.6 meters, with

adequate ground clearance, it can effortlessly maneuver on busy roads in cities as well as in

rural areas. Its semi volume structure, with tires at the sides and the power train at the rear,

enables it to uniquely combine both space and maneuverability, which will set a benchmark

among small cars.

b) Fuel-efficient Engine

The People's Car has a back wheel drive, with aluminum, 2 cylinder, 523 cc, 33 PS, multi

point fuel injection petrol engine. This is the first time that a 2 cylinder gasoline engine fitted

in a car with a one balancer shaft. The lean design strategy has helped minimize weight,

which helps maximize performance per unit of energy consumed and delivers high fuel

efficiency. Performance is controlled by a specially designed electronic engine management

system.

c) Meets all safety requirements

The People's Car's safety performance exceeds current regulatory requirements. With an all

metal body sheet, it has a solid passenger department, with safety features for e.g crumple

zones, intrusion resistant doors, seats belts, strong seats and anchorages, and the rear tailgate

glass bonded to the body. Tubeless tyres further enhance safety.

8

d) Environment-friendly

The People's Car's tailpipe emission performance exceeds regulatory requirements. In terms

of overall pollutants, it has a lower pollution level than two-wheelers being manufactured in

Malaysia today. The high efficiency also ensures that the car has low carbon dioxide

emissions, thereby providing the twin benefits of an affordable transportation solution with a

low carbon footprint.

9

Tata Nano Dimensions

Length 3.1 metres

Width 1.5 metres

Height 1.6 meters

Engine All-aluminium, Rear Mounted, Rear Wheel Drive

Capacity 623 cc

Power 33 PS

Fuel Injection Multi Point Fuel Injection (MPFI)

Fuel Type Petrol, Diesel Version will be later

Body Type Sheet Metal

Seating Capacity 04 (Four)

Mileage 20-22 Kmpl (City drive)

26 Kmpl (Highways)

Top Speed 75 K.M

Emission Norms Euro-IV, Bharat Stage-III compliant

Safety Norms Frontal Crash Tested

Versions One Standard and Two Deluxe

10

VERSIONS OF TATA NANO

Tata Nano Standard

Tata Nano Diesel Standard

Tata Nano Deluxe

Tata Nano Diesel Deluxe

Tata Nano Luxury

Tata Nano Diesel Luxury

TATA NANO BASIC

TATA NANO LUXURY

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Technical specifications

The Nano (2012) is a 38 PS (28 kW; 37 hp) car with a two-cylinder 624 cc engine. The car

complies with BS4 Indian emission standards and can also meet European emission standards

as well. The development of the Nano had led to 31 Design and 37 Technology patents being

filed.

Engine: 2 cylinder petrol with Bosch multi-point fuel injection (single injector) all

aluminum 38 metric horsepower (28 kW) 624 cc (38 cu in)

Value Motronic engine management platform from Bosch

Two valves per cylinder overhead camshaft

Layout and

Transmission

Rear wheel drive

4-speed manual transmission

Steering mechanical rack and pinion w/o servo

Turning radius: 4 meters

Performance Acceleration: 0-60 km/h (37 mph): 8 seconds

Maximum speed: 105 km/h (65 mph)

Body and

dimensions

Seat belt: 4

Trunk capacity: 150 L (5.3 cu ft)

Suspension,

Tires & Brakes

Front brake: 180 mm drum

Rear brake: 180 mm drum

Front track: 1,325 mm (52.2 in)

Rear track: 1,315 mm (51.8 in)

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Ground clearance: 180 mm (7.1 in)

Rear suspension: Independent coil spring

Launch of TATA NANO

Tata Nano is an amazing innovation, perhaps the best automobile innovation of 2009. To

pack an entire car for such a rock bottom price is next to impossible for any car company in

today's marketplace. Tata has started something that will overhaul the small car industry. If

Tata Nano is a wild success, if the owners love the new car, if the car lives up not only to its

looks but also on important metrics such as safety, ride, handling, fuel economy, and quality,

and if Tata is able to create the Nano in hordes to satisfy the appetite and dreams of the

Indian buyers - well, we may be witnessing the beginning of at least a $1 billion enterprise in

the making.

People are so happy with the Nano launch that they just cannot stop talking about it. Nano

bookings have now opened and just in one day the small wonder car received over 650

bookings across various Tata dealerships in Bangalore.

On the first day itself a huge crowd gathered near the Tata showrooms in the city and

dealerships were buzzing with potential Nano buyers. The queue to buy the world’s cheapest

car was growing throughout the car as more and more people joined the mob including city’s

IT professionals, bus drivers, and auto drivers. To your surprise many of the dealerships also

experienced bookings from first time car buyers. And this was what Ratan Tata dreamt for

when he saw the vision of producing an ultra-cheap car.

Scores of people have made booking for the standard and the top-end variant of the Tata

Nano. Most interesting experience for the dealership was that many of the buyers are

personally financing the full cost of the car and only a few are opting for a car loan. To ease

the finance needs of these people Tata Motors Finance is offering a 1005 loan amount at an

interest rate of 12-13% with for a period of 3 years.

The booking of Nano was closed on April 25, 2009. After the closure of the booking, section

was made through a random computerised process in which 100000 applicants were selected

who would buy the Nano in the first phase.

13

RE-LAUNCH OF TATA NANO

(2013 NANO)

Tata is currently working on a face lifted version of its Nano, with the vehicle set to

receive multiple changes, among which we'll find new power plants.

Alongside the CNG (compressed natural gas) and diesel versions that have already been

confirmed, the 2013 Nano is expected to receive an 800cc engine. The 0.8-liter unit for the

Nano is expected to arrive on the market in about one year from now.

The Nano revamp should also bring certain design and equipment upgrades, as Tata wants its

affordable car to be able to face the rising competition. We are talking about vehicles that

have appeared o will arrive as a reaction to the Nano. The list of names includes the Maruti

Alto, Hyundai Eon, as well as the future propositions from Datsun and Renault, which should

be launched in 2014.

The Nano will probably keep its current 624cc unit, which should be used for the entry-level

model. As for the all-important pricing, the 800cc version of the Nano is expected to retail for

Rs. 2.5 lakhs ($4,550 or€3,450).

14

STP Analysis

Tata Motors has identified a distinctive strategic position for itself in the small-car industry,

segmenting the market by end-user. The Nano will target two-wheeler and three-wheeler

users, and also woo individuals looking for a second car and second hand car.

S EGMENTATION

As far as the geographic segmentation is concerned, all of India will be the target

market. Mainly the semi-rural and semi-urban areas will be targeted.

There is also a plan to segment the market on the basis of income levels for

demographic classification.

For the psychographic segmentation, personality type of people will be considered.

Actually, Tata Nano is going to create a new market segment in Indian market. It is

expected to lessen the difference in price level between two wheelers and four

wheelers. So, industry analysts are thinking that the market of two wheelers will be

affected with the advent of Tata Nano.

T ARGETING

Geographic - the main target audience will be people living in the Tier 2 (which

includes 3800 cities & towns), Tier 3 (around 597 districts) areas.

Demographic - Lowest 60% of people (income-wise) account for 33.4% of total

expenditure in India and it is this group that will be planned to tap.

Psychographic - The Aspirers’ (Having income Rs.90000-Rs.200000) account for

21.9% of Indian households and Seekers (Having income Rs. 200000-Rs.500000)

account for 4.8%. 47% of aspirers and 70% of seekers own two-wheeler and the plans

are to persuade them to upgrade to Car.

15

P OSITIONING

1. “SMALL CAR WITH BIG DREAMS”

2. “MANZIL KI ORE PEHLA KADAM”

Points of Parity (POP)

Safety features

For Luxury variant - Features like Power windows, AC , Power steering will be

available

Well designed Car available in attractive colors.

Fuel Efficiency

Points of Difference (POD)

Affordability (Purchase & Maintenance of the car).

Effects of launch of TATA NANO

16

The introduction of a cheap, mass market auto such as the Nano is bound to have some

unforeseen effects.

Safer Travel

Nano is safer than the currently used two wheelers, especially during monsoon, when heavy

rains can make travelling difficult on a two-wheelers due to wet roads.

Pollution increase

As the Nano was designed for a population currently using eco-friendly bicycles and

motorcycles, environmentalists are concerned by the increase in pollution that would follow a

mass motorization in developing countries such as India.

The Nano has far lower emissions compared with developed country autos, however.

Indian used car market

The Nano is thought to have affected the used car market in India, as many Indians may opt

to buy a Nano rather than a used vehicle. The new-car market is also being affected. Sales of

new Maruti 800s, the second-cheapest car in India, dropped by 20% and used models by 30%

immediately prior to the Nano's introduction.

AWARDS

2010 Business Standard Motoring Indian car of the year

2010 Bloomberg UTV-Autocar car of the year

2010 Edison Awards, first place in the transportation category

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COMMENTS ABOUT TATA NANO

"It's a good historic moment for the Indian auto industry and also a proud one indeed that an

Indian company took a step forward on this road. It’s an up gradation for an auto wheeler

rider to by a car now.”

- Rajesh Jejurikar, Managing Director, Mahindra and Renault's.

"It's good product but it's still too early to say whether it will overtake the 800 because it

caters to a totally new market segment.”

- Jagdish Khattar, Former MD of Maruti Udyog Limited

"Meeting the proper quality standards and safety is not feasible at all in such a model.”

- Andreas Prinz, Managing Director (Passenger Cars),

Volkswagen Group Sales India.

"I think it is a great thing for India because mobility is giving new opportunities. I hope Tata

drives to great success with the Rs one lakh car, but it is not included in our plan.”

- Thomas Kuehl, Board Member, Skoda Auto India.

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THE CONTROVERSIES AND CONCERNS

THE CONTROVERSY:

Tata Motors has been occupying the headlines more

for the Singur controversy than for the Nano. Singur

car factory land dispute arose as Tata's planned

manufacturing unit for the car in Singur, where the

state government of West Bengal had allocated

997 acres to Tata Motors. The construction for this

factory on which the Nano was supposed to be

coming up started in the month of July 2007 but

soon faced opposition from a political party. The

Trinamool Congress, led by Mamata Bannerjee,

protested against the manufacture of the car and the plant saying that the land was to be used

for agrarian purposes and was wrongfully allotted to Tata Motors for making the Nano. There

were protests all over the state and even in the capital city of New Delhi. Activists of the

Trinamool Congress stood outside the main gate of the plant and protested against any work in

the plant.

For completing their Nano project in West Bengal the Tata motors had invested a lot of

money and if they shifted their plant from West Bengal to other states then they would

have to bear a loss of approximately 1000 crore rupees . This is because they had

assembled their machinery in Singur plant for manufacturing the Nano car.

But due to continued agitation, Tata Sons chairman Mr. Ratan Tata on 2nd October, 2008

officially announced that Tata Motors would be pulling out of Singur for the security of their

officers was of paramount importance to them and the states of Karnataka, Maharashtra as

well as Gujarat were being looked at as viable options for the setting up of the Tata motors

factory.

19

Finally Gujarat was taken up as the apt place for building a new factory. West Bengal’s loss

turned out to be Gujarat’s gain. Ratan Tata was quoted saying in a paper, whether the people

of West Bengal wanted jobs or lawlessness. Pranab Mukherjee the external affairs minister of

the country had said that if a group like Tata motors exited the state of west Bengal it would

be a great setback for them and the industrialization of the state.

But the controversy, though financially is backbreaking, it hasn’t diluted the brand Nano. In

fact, it has made Nano a huge brand even before its launch. In every article on Singur,

the Tata Nano model is invariably mentioned. Nano was covered extensively by world media

when it was launched and except for one-full page advertisement Tata did not spend on

advertising for Nano at all. Yet, Nano is a household name today, thanks to the controversy

and the Analysts estimate that the buzz created by the free publicity for Nano is worth over

Rs 500 crores.

In fact what we feel is that Nano is on everyone’s mind but the production has been

hampered by this controversy. The new facilities are not yet ready which will lead to delays

in time schedules. Adding to this, the waiting list is very long and increasing rapidly. Failure

of order delivery on time will create disappointments all around. Also, the losses of over Rs

500 crores will surely put pressures to keep the price at Rs 1 lakh. The price will not be

sustainable and there will be likely price hikes following the introductory offers.

20

Pollution and safety concerns:

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 criticized the pollution that it would cause.

They fear that the car will increase the number of cars in Indian roads significantly and thus

the amount of emission will be increased as well as accelerating the global warming. Tata’s

competitors are not that much satisfied with the launch of their new product indicating its

safety concern.

Nano is Bharat III and Euro IV complaint. It has lower carbon footprint, 20 mg / Km of

Carbon Dioxide emission as compared to 45mg / Km, emitted by most of the two wheelers.

The high fuel efficiency (20 km/litre) also ensures that the car has low carbon dioxide

emissions, thereby providing the twin benefits of an affordable transportation solution with a

low carbon footprint.

Tata has also said that Nano has an all sheet-metal body, with safety features such as crumple

zones, intrusion-resistant doors, seat-belts, strong seats and anchorages, tubeless tyres and the

rear tailgate glass bonded to the body. It meets the frontal impact requirement and also the

side impact requirement (although they are not mandatory in India).

21

Objective of the Study

To know the present consumer perception about Tata Nano.

To study the various features and utility of Tata Nano.

The various effects after launch of Tata Nano.

To study the various limitations in Tata Nano.

Finding future potential for Tata Nano.

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CHAPTER - 2

METHODOLOGY

23

RESEARCH METHODOLOGY

OBJECTIVES

• To know the present Consumer Perception about TATA NANO.

• Finding future potential for NANO.

RESEARCH METHODOLOGY

The research design is the conceptual structure within which research is conducted; it constitutes the blueprint

for the collection, measurement and analysis of data. The data was collected from 50 customers from Delhi

district. A scheduled questionnaire was used to collect primary data on the other hand; secondary data was

collected using books, magazines and websites. Graphical tools including bar diagrams, pie charts and

percentage analysis were used in the process of analysis and interpretations of the collected data. The research

methodology for the present study has been adopted to reflect these realties and help to reach the logical

conclusion in an objective and scientific manner.

UNIVERSE

The customers of Tata Nano mainly of Rohini and Pitampura concertedly contributed to the universe.

POPULATION

The sample size is 50. Respondents are selected above 18 years of age with a household income less than 5,

00,000 per annum

SAMPLING

Convenient sampling was the method adopted for the selection of sample from the above-mentioned

universe.

SOURCE OF DATA COLLECTION

During preparation of the Project Report many different kinds Of Data were required which Included both

Primary and Secondary Sources.

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PRIMARY SOURCES

Primary sources are original sources from which the researcher directly collects data that have not been

previously collected, e.g., collection of data directly by the researcher on brand awareness, brand

preference, brand loyalty and other aspects of consumer behaviour from a sample of consumers by

interviewing them. Primary data are first-hand information collected through various methods such as

observation, interviewing, mailing etc

Questionnaire - A sample questionnaire was provided to around 50 different people which

was used to Derive Results and Analyze customer needs for Tata Nano.

A sample of the questionnaire along with Results from Findings and Analysis are given later

in the Project

SECONDARY SOURCES

These are sources containing data that have been collected and compiled for another purpose. The

secondary sources consist of readily available compendia and already compiled statistical statements and

reports whose data may be used by researches for their studies.

Journals – Various Journals published by Automotive Magazines as well as Business houses

have provided vital statistical as well as Theoretical Data which have been very helpful.

Newspapers and Magazines – Economic Times as Well as Magazines such as Overdrive,

Autocar have provided useful Information on Developing Indian Automotive Sector as well as

how the trend and demand of customers has changed over a period of time .

Internet and Other Media Sources – WWW has the latest data and interviews which helped

me in determining the scope pf my project as well as make it as up to date as possible.

TOOLS USED FOR THE STUDY

Various statistical tools have been used for the study.

Statistical tables

Charts and Diagrams are used for the presentation of the data.

25

CHAPTER 3

FINDINGS & ANALYSIS

26

The questionnaire is given in Appendix. 20 respondents were interviewed. The questionnaire

was basically developed to understand how people perceive Tata Nano, so that suitable

marketing communications strategies could be developed.

The following observations were made and conclusions drawn from them:

Age of the respondents

Graph 3.1

This chart shows that about 80% of the respondents were in the age group of 18 to 25 years.

People from other age group categories are less responsive about TATA Nano.

27

Income of the respondents

Graph 3.2

Most of the respondents were in the income group of less than 1,50,000p.a. This is the main

for Tata Nano. This may be due to the reason that respondents in the income group more than

1,50,000p.a can afford to buy other cars which are expensive than Tata Nano.

28

Do you know about the features of tata nano?

Graph 3.3

As the chart shows almost everyone is aware of Tata Nano’s features except that of 10%, this

implies that word of mouth publicity is already in progress for Tata Nano. It further implies

that Tata Nano is the concern of almost everyone.

29

Which of the following options do you prefer?

Graph 3.4

Since most of the respondents were young and within the income group of less than 1,50,000,

the maximum response for preference was for Tata Nano. Others having more income prefer

other expensive vehicles because of their ability to pay more. About 20% people prefer two

wheelers to travel nearby places and pleasure to ride two wheelers.

30

How do you rate Tata Nano on the following attributes?

Prestige

Graph 3.5

Tata Nano is obviously not a symbol of prestige due to its lower cost. Tata Nano does not

fare well in the prestige aspect.

31

Safety

Graph 3.6

Tata Nano was perceived as a safe car by most of the respondents. However, due to its singur

controversy, it left a bad impression with regard to its safety on few respondents.

32

33

Economy

Graph 3.7

Almost everybody believe Tata Nano to be economical. The lowest priced car in the

world has to be economical.

34

Family car

Graph 3.8

Tata Nano was perceived as a neutral when it comes to being called a family car by

60% of the respondents. However 20% respondents believed it to be bad in context of

a family car.

35

The Brand TATA

Graph 3.9

The Brand TATA as a passenger car manufacturer is perceived to be good and neutral

by most of the respondents. Tata still needs to work upon in new ways to build its

brand image. It needs to develop its new target market and strategies to create its

brand amongst topmost priorities.

36

SWOT ANALYSIS

STRENGTHS:

41 Patents for innovation

Low- priced

Stylish

Environment- friendly

High fuel efficiency

Spacious- Internal space 21% more than Maruti 800 and External space 8% less than

Maruti 800

Variometric gear system- magnifies torque

WEAKNESSES:

Less boot space

No headlight levelers

Not fit for hilly terrain

Poor traction control

Poor engine cooling and hence over heating

Small wheel base

Windows wind down by hand

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OPPORTUNITIES:

Recession

Royalty

Auto finance

Create employment

THREATS:

New competitors- Bajaj, Chery, Honda Siel, GM

Electric car- REVA

Traffic congestion

Reducing parking space

Strict European Safety standards

Rising cost of raw materials

Rise in taxes

38

FINDINGS

Knowing the fact that TATA is a old player in automobile sector still in a passenger

car segment, its image is not at par as of its competitors.

Tata Nano has been promoted as an economical car for the lower/middle income

segments and is not being promoted in rural areas.

The performance of the car is not at par as it was promised.

As Nano was introduced as a “Lakhtakia” Car but its on road price is more than a lakh

which becomes a hindrance in its promotion.

39

CHAPTER 4

CONCLUSIONS

40

CONCLUSION

Tata hopes the Nano will help millions of poor people around the world — the “Bottom of

the Pyramid” in developing world marketing-speak —switch from two wheels to four.

Environmentalists, city planners and even some competitors, on the other hand, warn that the

new vehicle will clog up India’s crowded roads and add clouds of pollution to its already

filthy air.

Tata emphasized that the new car complies with India’s emissions laws and even with

Europe’s much stronger Euro 4 standards. Emissions, Tata says, are “lower than a scooter’s

today”. The company claims the car will also deliver 50 miles per gallon, or better than 20

kilometers per liter, which would make it one of India’s most efficient vehicles, and vastly

more efficient than the average in the U.S.

After the study of various aspects I found that –

NANO IS DEFINITELY NOT FOR:

Someone looking for great performance.

Someone looking for social prestige.

Someone looking for speed.

Someone looking for long hours of drive.

BUT IT IS DEFINITELY FOR:

Someone who is looking to buy a car but cannot afford one

A student who wants to go to college in his own car.

Someone who depends on second hand car.

A house wife who can buy a car with her own savings.

Someone who depends on two-wheeler.

So Tata Nano is basically not a luxury car but it can fulfill the needs of the lower and

the middle class people.

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Why would a person owning two-wheeler buy Tata Nano?

With a Rs 30,000 down payment, one can take a loan of around Rs 1 lakh and EMI works out

to be around Rs 3,716 per month. With just Rs 3,700 per month on an EMI, anybody can

afford this product. As far as the shift is concerned, initial estimates is around 10% of the

two-wheeler market can actually shift towards the small car.

How will Tata Nano affect used car market?

What is felt is that used car market won’t be affected initially as people who want to buy a

second hand car won’t have the patience to wait. Already the production has been delayed

due to various reasons so the waiting period is bound to increase. But as the production

facilities are utilized to maximum capacity, the waiting period will come down and it is at

that time, I feel, the second hand car market will be affected.

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CHAPTER 5

RECOMMENDATIONS

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RECOMMENDATIONS

Tata Nano has been a very interesting case about studying business in India and other

emerging markets. It has seen some very interesting highs and lows which are unique to the

Indian market. However, following recommendations can be made:

1. Clean up the Brand Image – Nano first of all needs to re-establish itself as a

credible brand. This might be the hardest thing to do give the beating the brand image

has taken because of the fires. Nano would need to aggressively work on its PR and

show how the accidents are not because of flaws in Nano’s design but because of some

unfortunate external factors.

2. Define a clear Marketing Strategy – Nano needs to have marketing strategies to

target its real consumer segment which is the masses of India and showcase the Nano as

an aspiration product for them instead of coming across as an accessory for the rich.

3. Focus on Other Countries – Export Nano to Indonesia, Eastern Europe and also

Brazil as well as Southeast Asia where it can be sold without the bad name it has earned

in India.

4. Use Shareholder base of Tata – Tata Motors have a shareholder base of around

350,000 right now. It could be utilized to boost Nano sales through discounts etc.

5. Rework on Pricing – when Nano started, a major challenge was to prove whether

it was possible to manufacture a car which can be sold at the price of Rs. 1 lakh. That

point has been proven. The real challenge now is creating profitable car business. If Tata

starts pricing its Nano in a range where it is more cost-effective, it would first, reduce the

losses Tata incurs per car, as well as give the brand a facelift.

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CHAPTER 5

LIMITATIONS OF THE

STUDY

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Limitations of the Study

By working on this project I gained a lot of knowledge over this sector in India. But there are

a certain no. of problems which I faced while working on this project. These problems can be

illustrated as limitations of study which are as followed:–

Since the study was within a period of 8 weeks, time factor was a major constraint.

The study was based on the assumption that the respondents will always be truthful and correct. But

this assumption might not be true always.

The study depends upon responses of the respondents, who are believed to be giving the right

information. Thus the accuracy of the survey and its findings depends a lot on the respondents and their

responses.

This sample size cannot represent the features and characteristics of the universe to its entirety.

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BIBLIOGRAPHY

WEBSITES

http://tatanano.inservices.tatamotors.com/tatamotors/ - 12-03-2013

http://economictimes.indiatimes.com/articleshow/2694186.cms - 12-03-2013

http://www.businessweek.com/content/feb2008/id2027_3233.htm - 17-03-2013

http://tatananoindia.blogspot.com/ - 12-03-2013

BOOKS

Kothari, C.R. Research methodology, 3rd edition, 1997, Vikas

Publishing House Pvt. Ltd, New Delhi.

Kotler Philip ,Marketing Management, 4th edition, 2002, Prentice Hall of

India Pvt Ltd

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ANNEXURE

Questionnaire for the primary research conducted:

Name:

Contact No.:

Q.1 Age

1. 18 – 25 years

2. 26 – 40 years

3. 41 – 50 years

4. 50 +

Q.2 Income Level per Annum

a. Less than 1,50,000

b. 1,50,000 – 2,50,000

c. 2,50,000 – 5,00,000

d. More than 5,00,000

Q.3 Are you aware about the various features of Tata Nano?

a. Yes

b. No

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Q.4 What do you prefer from the following options?

a. Neither a two wheeler nor a four wheeler

b. A two wheeler

c. Tata Nano

d. Four wheeler other than Tata Nano

Q.5 Rate Tata Nano on Prestige

a. Very Bad

b. Bad

c. Neutral

d. Good

e. Very Good

Q.6 Rate Tata Nano Safety

a. Very bad

b. Bad

c. Neutral

d. Good

e. Very good

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Q.7 Rate Tata Nano Economy

a. Very bad

b. Bad

c. Neutral

d. Good

e. Very good

Q.8 Rate Tata Nano Family car

a. Very bad

b. Bad

c. Neutral

d. Good

e. Very good

Q.9 Rate Tata Nano The Brand TATA

a. Very bad

b. Bad

c. Neutral

d. Good

e. Very good

THANK YOU FOR YOUR VALUABLE TIME AND RESPONSES.

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