Professional Documents
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ACKNOWLEDGEMENT
I am thankful to SNDT University and Gandhi Mahila
College and specially BMS department who provided me with the
opportunity for carrying out the study.
I would also like to acknowledge my sincere thanks to
our co-ordinator Dipti Mam. Under their valuable guidance, constant
interest and encouragement, who have devoted her ever-precious time
from their busy schedule and helped me in completing the project. Her
co-operation was not only useful for this project but will be a constant
source of inspiration for me in the future.
I express gratitude to various faculty members
especially Sandeep Sir for his valuable guidance which was a good
learning experience in order to make my efforts successful.
Special, continual assistance while collecting the data
was provided by the respondents. I wish to acknowledge my special
thanks to them for their help and cooperation in order to complete this
project.
Table of contents:
✔ Objective of research
✔ Methodology of research
✔ Introduction to the subject –new product development
✔ Introduction to Tata Nano
✔ Tata Nano and new product development
✔ Some myths about Nano
✔ Comparison between Nano and Maruti 800
✔ Data collection method
✔ Analysis of data collection
○ Various charts
○ Some feedback about Nano
✔ Conclusion
Research objectives
✔ To study about how a new product- Tata Nano was
developed based on marketing theory of “new product
development.”
✔ To study about what made possible for Tata to develop and
produce a car for just Rs. One lakh.
RESEARCH METHODOLOGY
✔ Research methodology deals with the various methods of
research. The purpose of the research methodology is to
describe the research procedure used in the research.
Meaning of product:
E.g.:- milk, computer, shoes, service after sales, railway
services etc. a product can be divided into two categories
✔ Tangible goods
✔ Intangible goods
Tangible products are known as goods that can be
touched, felt and seen. E.g.:- computer, mobile phone etc
Intangible products are known as services that cannot
be touched and seen as the customer can feel and experience only after
utilizing it. E.g.:- service after sales
Business analyses.
After management develops the product concept and
market strategy, it can evaluate the business attractiveness. Business
analyses are the first in-depth financial evaluation of new product to be
developed. Here management needs to prepare sales cost and profit
projections to determine whether they satisfy company objectives. If
they do, then concept can move to the development stage. SOWT
analysis will be conducted at this stage by the organization. It also
includes the following:
Total sales estimation:-
These are the sum of estimated first- time sales,
replacement sales and repeat sales. Its method depends upon whether the
product is one time purchase(an engagement ring), an infrequently
purchased products like toaster, auto mobile etc. or a frequently
purchased products like consumer and industrial non durables.
Estimation costs and profits.
The R&D, manufacturing, marketing and financial
departments estimates the costs. The profitability of the new product is
estimated through various financial tools. The simplest technique is the
breakeven analysis in which the management estimates how many units
of the product the company would have to sell to break even with the
given price and cost structure. If the management believes that sales
could easily reach the break even number, it is likely to move the project
into development stage.
Product development
In this stage, detailed technical analysis is
conducted to know whether the product produced at costs is low enough
to make the final price attractive to the customer.
Here a working model or a prototype is developed
to disclose all tangible and intangible attributes of the product. A product
protocol is prepared which is a detailed downiest containing the
important attributes that are expected in the product. Once the protocol
has been developed, it is handed over to the research the development
department to develop the prototype of the product.
Test marketing:
The test marketing is the stage where the product
is introduced in a few selected cities. During this stage, the company has
to fate the following expense:
✔ High advertisement
✔ High manufacturing cost.
✔ High distribution cost etc.
For testing the product, marketer needs to make
the decision on the following issues.
✔ The no. of cities in which the product is to be tested.
✔ Geographic location of the cities.
✔ Time to carry ort test marketing
Through this exercise, company can know the
customers response, feedback, suggestions, complaints and any other
changes required to be done for product modification.
After successfully laughing the product in
selected cities the company launches the new product in all other cities.
There are certain methods of product testing.
Alpha testing
In this method, a group of target audience is selected
from the employees of the company.
Beta testing:
It is carried out at the customer’s site. Generally, it is
applicable for industrial products where the customization takes place.
Gamma testing:
It is carried out on a long term basis where the
customers uses the product extensively and gives response after a long
period of time. Say six months.
Commercialization:
The results of the test marketing help marketers to
decide the changes that are needed in the marketing mix before entering
into the market. It also helps the marketer to decide the amount of
production distribution strategy, selling efforts and other issue like
providing guarantees, service after sales etc. the product enters the
market during the commercialization stage.
Details of Nano
Specs:
Engine: 624 cc / 33 bhp
4 door, 5 seater (and yes 4 Wheeled too)
Rear Engine
Weight: 600 kgs
Mileage - 22-23 km/litre
Variants:
Standard
Deluxe (with AC)
Future:
Diesel Variant
Exports outside India or assembly plants outside
Comparison
8% less in length (bumper to bumper) with respect to Maruti 800
21% more in inner space with respect to Maruti 800
(Info for westerners: Maruti 800 is the benchmark small car
currently available and has been in India for about 25 years. It is
much more popular and reliable than those Chinese Cherry cars)
Looks:
Front side looks more like Matiz (or Spark as we now call it)
back side looks more like India with those long tail lights.
Insight:
People often criticize something that is making waves
everywhere. This has also been the case with Tata Nano.
Competitors, safety regulators, environmentalists and most
others conceived the problems that India will face, when such a
car is available, much before the actual launch of the car.
Myth no 1
Nano is an unsafe car
The car has an all steel body.
It meets the mandatory Frontal Impact requirements.
It also meets the Side Impact requirements although they are not
mandatory in India.
Myth no 2
Nano will greatly increase the Pollution Level
The car is Bharat IV and Euro IV compliant although these norms,
which are stricter than the present Bharat III norms, are yet to be
introduced.
It has lower carbon footprint, 20 mg / Km of Carbon Dioxide
emission as compared to 45mg / Km, emitted by most of the two
wheelers.
Its Multi Port Fuel Injection system is controlled by an intelligent
Bosch Engine Management system which controls the combustion
cycle precisely to ensure compliance to all emission norms.
Myth no 3
Nano will struggle to perform
Although the car has 33 bops as the maximum horsepower it has a
low kerb weight of 550 Kg and so has a higher power-to – weight
ratio when compared to many existing cars running on Indian
roads.
The car has a matching acceleration to Maruti 800 and also a good
top speed. Although the manufacturers have estimated 90 Kms as
the maximum speed the car can go up to 105 Kms per hour top
speed.
Myth no 4
Nano has very little leg room
Although the car is 8% smaller than Maruti 800 it has lot of extra
leg room at front as there is no engine compartment. This also
leaves sufficient knee room at the rear.
The car has a tall boy type design so there is lot of head space and
also enough Shoulder room.
The mono volume design and the wheels having been put at the
corners have freed up lot of in- cabin space and although the car
may be registered as a four-seater, three slim adults can sit
comfortably at the rear.
Myth no 5
Cheap means Uncomfortable
More comfortable than some of the cars selling at even twice the
price. Leaves sufficient knee room at the rear.
Easy to get in & out of the car because of perfect seat height from
the ground.
Suspension systems are good and the trailing arms with coil
springs are not found in cheap cars. Rear.
Myth no 6
It’s very difficult for a rear - engine car to
work.
Rear engines work in many cheap as well as expensive cars.
Auto-rickshaws at one end and Formula One cars on the other
extreme all use rear engines.
Maruti Omni too has a rear engine, under the seat and no one has
been burnt due to that.
Cooling is easier in Nano as compared to some vans and there are
the air ducts on either side behind the edge of the doors, which
allow air to seep in for both cooling & for intake.
Myth no 7
There is a shortage of storage space.
There is some storage space although not much.
The rear seat with parcel shelf folds to allow accommodating a
large suitcase.
Small articles can be placed under the bonnet also.
Myth no 8
Cutting Corners is evident everywhere
Cost cutting is done by smart designing rather than taking out the
essentials.
One wiper has been taken out but the functionality is intact. Wind
shield washer fluid jets are mounted on the wiper itself rather than
the body.
Wheels are held by three bolts instead of four.
On the contrary, MRF tubeless tyres and all Alumininium engine,
have been used, which are more expensive than conventional ones.
ENGINE:
➢ Maruti 800: – 800 cc
➢ Tata Nano :623 cc (better fuel than Maruti 800)
ENGINE TYPE:
➢ Maruti 800 – petrol/LPG
➢ Nano : petrol (diesel version will be later)
SEATING CAPACITY:
➢ Maruti 800: 4+1 person
➢ Nano: 4+1 person
FUEL TANK CAPACITY:
➢ Maruti800 : 28 Lt (petrol), 19.2 (LPG)
➢ Nano: 30 Lt.
WEIGHT
➢ Maruti 800 – more than 690 kg (gross weight is 1000 kg)
➢ Nano – more than 600 kg
TOP SPEED:
➢ Maruti 800 : 120 km/hr
➢ Nano : 90 km /hr
SEGMENT:
Maruti 800 – middle class people
Nano: lower and middle class people.
FUEL CONSUMPTION:
➢ BREAKS:
Tata Nano:
The Nano are not much taller and broader as compared to
Maruti – 800 but it has 21 percent larger spaces in side but 8
percent short than Maruti.
PRIMARY DATA:
Primary data is the data, which are fresh
and collected for the first time, and are original in
character. There are various Primary Data Collection
techniques, which have helped in data gathering. This
was collected through questioner.
Questionnaires are a popular means of collecting data,
but are difficult to design and often require many rewrites before an
acceptable questionnaire is produced.
Advantages:
✔ Can be posted, e-mailed or faxed.
✔ Wide geographic coverage.
✔ Relatively cheap.
✔ No prior arrangements are needed.
✔ Avoids embarrassment on the part of
the respondent.
✔ Respondent can consider responses.
✔ No interviewer bias.
Disadvantages:
✔ Design problems.
✔ Questions have to be relatively simple.
✔ Time delay whilst waiting for responses
to be returned.
✔ Several reminders may be required.
✔ Assumes no literacy problems.
✔ No control over who completes it.
✔ Not possible to give assistance if
required.
✔ Problems with incomplete
questionnaires.
Points kept in mind while preparing the
questioner
✔ Liberal spacing
✔ Length of the questioner is kept normal
✔ Logical Order
✔ Question are short, simple and to the
point; all unnecessary words are
avoided
✔ Close ended questions are asked so
that it’s easy for the respondent to fill
the questioner and also easy to analysis
✔ Sample population was selected on the
basis of random sampling method.
SECONDARY DATA:
Secondary data are those data, which have
been already collected or published for the purpose other
than specific research need at hand. This data is simply
used up by the researcher for his purpose of collected
data and it’s used for the same purpose. The secondary
data sources here in this project are:
Websites
Books
Positive response
✔ I have one more angle to look at Nano. I think it is worlds most
hyped about gadget after the iPhone. Did I just say “gadget”. Well,
yes Tata Nano is not just a car; one can also look at it like an
expensive gadget which also gives us mobility. One of the very
few cute looking gadgets that all us geeks will love, who would
generally be interested in stuff that is sleek and powerful. I am also
hopeful that Tata will launch FCV and alternative fuel cars soon.
✔ I definitely would like to buy the car. Who would not want a good
car for just 100000 Rs?
✔ It’s just cool. One should definitely buy it.
✔ As it is, but very smart and sexy. I would defiantly buy it.
✔ Congratulations to Mr. Rattan Tata. He did a real good job.
Negative response
✔ It is impossible to build a car at such a price. No one has been able
to do it so far. It is just not possible.
✔ It will be more like a scooter with a roof. I am sure no one can
make the car for the cost of two bikes.
✔ This car is another auto rickshaw. It will add a lot to the traffic on
road.
✔ It shall be a half car with no roof. I doubt if it will be able to go up
the flyovers.
✔ It may be an upgraded Auto-rickshaw with plastic body. It shall be
a very unsafe car as the very idea of 1 Lac car is too farfetched to
be true.
✔ It shall never meet the emission norms. We shall choke on the
poisonous emissions from this car.
Mixed response
✔ IT HAS NOT BEEN DONE EVER. Even the nearest car is double
the cost. Let us see what Mr. Tata can do to maintain the price line.
✔ I am not very convinced but would definitely go for it if it is safe.
✔ I hope I can take my family of 4 in this car. I wish Tata's make this
dream a reality.
✔ I know the talk is that it is a myth. However miracles do happen.
Let us wait and watch.
✔ The reaction was a mixed one. People wished it to be true but were
very cautious about expressing their optimism.
Conclusion
MY OPINION
After the study of various aspects I found that –
Nano car is definitely not for
✔ Someone looking for better performance
✔ Someone who is looking to impress
✔ Someone who want to speed trial on Sunday
✔ Someone who is looking for long drives.