MK-101 Sec-F Group-4

Executive Summary
y Highly anticipated and hyped automobile debut in India y The people s car or the 1 Lakh car promising safety and comfort y Planned to be launched in gasoline-powered version followed up by diesel versions y Highly fuel efficient

22 to 26 kmpl y Backed up by the big brand image of Tata Motors, the first Indian manufacturing company to be listed on the NYSE y Plans to target masses focusing on the lower income segment

 Market Identification

Marketing Plan

Providing Value Communicating Value

Market Identification
Cust rS g tati / Mark t S l cti
y Income distribution y Middle-Income group (2-5 l.p.a.) y Low-Income group (upto 2 l.p.a.) y Family-Size distribution y Small family (2-4 people) y Potential substitutes y Used cars y 2-wheelers

Recommendation: y More markets can be tapped E.g., Youth, Old and retired people, Individual members of the family

Market Identification
Cust rS g tati / Mark t S l cti
Youth Market Research Results

who buy

who doesn t

Market Identification
Value siti i g
y Touted as the one-lakh car and people s car y The most fuel-efficient car

Market Identification
Market attractiveness
Porter s 5 forces
High Entry barrier No Existing competiti on Placed above substitute s Low Customer Bargainin g Power

Low Supplier Bargainin g power

 Market Identification

Marketing Plan

Providing Value Communicating Value

Providing Value
Lowest Price Ecofriendly Product Design

Good Vendor and Distributor network

Providing Value
Pr uct Design
No compromise on components quality

y Design built from scratch

y Streamlined modular design components serving multiple purposes y No frills - AC, tachometer, airbags, etc. not provided in the base model y More Boot/seating space compared to other small cars y Green car
complying with stricter emission norms

Recommendations: Offer more customization

Providing Value
Pricing H w Nano reached the 1 Lakh figure?
y Design built from scratch
No legacy costs

y Cut down on features y Multi function parts used y Reverse auctioning used y 90% components outsourced; 75% of them single sourced. y Low-rejection rate of parts Warranty costs went down tenfold
y Low dealer margins (2-3%) and low contribution margins (15%) y Taxes 12.5%

y Final on road price = Rs 1,30,000

cheapest

car in the world

Providing Value
Supply Chain
y Suppliers and Vendors y Long-term volume contracts y Majority of components outsourced/single-sourced y Co-location of vendors y Manufacturing/Assembly/Processing facility y Initially 1 plant to be followed by addition of 3 other

Providing Value
Supply Chain
y Distribution Network y Different distribution channels car shipped as kits y Established distribution network 200 existing Tata Motors dealers Recommendation: Increase number of dealers y Service Outlets y Currently, the customer service index of TATA Motors is below market average. Recommendation: Increase in number of service outlets

 Market Identification

Marketing Plan

Providing Value Communicating Value

Communicating Value
Promotion
y Radio FM y Publicity event in Malls y More focus on safety

risks involved with two wheelers y Projecting image of Green Technology y Encouraging use in rural areas