“ Study

on Consumer

behavior at Tata Motors for Nano ”

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INTRODUCTION

Introduction
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Consumer behaviour is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. [1] It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the decision-making processes of buyers, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is difficult to predict, even for experts in the field.[2] Relationship marketing is an influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalisation, customisation and one-to-one marketing. Social functions can be categorized into social choice and welfare functions. Each method for vote counting is assumed as social function but if Arrow’s possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneously. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in mind, the productive system is considered from its beginning at the production level, to the end of the cycle, the consumer

Black box model ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
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BUYER'S

where the focus is not set on the processes inside a consumer. political and cultural circumstances of a society.RESPONSE Marketing Stimuli Environmental Stimuli Buyer Characteristics Decision Process Problem Economic Product Price Place Promotion Technological Political Cultural Demographic Natural Attitudes Motivation Perceptions Personality Lifestyle Knowledge recognition Information search Alternative evaluation Post-purchase Product choice Brand choice Dealer choice Purchase timing amount Purchase decision Purchase behaviour The black box model shows the interaction of stimuli.[4] The black box model is related to the black box theory of behaviourism. based on the economical. in reality many decisions are not made in awareness of a determined problem by the consumer. Belch and Belch (2007) explain that consumers undertake both an internal (memory) and an external search. However. The buyers black box contains the buyer characteristics and the decision process. rational decision process. consumer characteristics. in which it is assumed that the buyer has recognized the problem. Information search Once the consumer has recognised a problem. but the relation between the stimuli and the response of the consumer.[3] It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people). The marketing stimuli are planned and processed by the companies. they search for information on products and services that can solve that problem. The black box model considers the buyers response as a result of a conscious. Sources of information include: • • • Personal sources Commercial sources Public sources 4 . decision process and consumer responses. which determines the buyers response. whereas the environmental stimulus are given by social factors.

It also needs to check other brands of the customer’s consideration set to prepare the right plan for its own brand. selects. Consumers' tendency to search for information on goods and services makes it possible for researchers to forecast the purchasing plans of consumers using brief descriptions of the products of interest. Selective attention consumers select which promotional messages they will pay attention to. • • • The implications of this process help develop an effective promotional strategy. organises. this set tends to be small relative to the total number of options available. The marketing organisation needs to understand what benefits consumers are seeking and therefore which attributes are most important in terms of making a decision. attitudes. Sometimes also known as consideration .[5] The selective perception process Stage Description • Selective exposure consumers select which promotional messages they will expose themselves to. Selective comprehension consumer interpret messages in line with their beliefs. and select which sources of information are more effective for the brand. The evoked set refers to the number of alternatives that are considered by consumers during the problem-solving process. Selective retention consumers remember messages that are more meaningful or important to them. and interprets information to create a meaningful picture of the world". How can the marketing organisation increase the likelihood that their brand is part of the consumer's evoked set? Consumers evaluate alternatives in terms of the functional and psychological benefits that they offer. Evaluation of alternatives At this time the consumer compares the brands and products that are in their evoked set. Purchase decision 5 . Perception is defined as "the process by which an individual receives.• Personal experience The relevant internal psychological process that is associated with information search is perception. motives and experiences.

personality. Other influences Consumer behaviour is influenced by internal conditions such as demographics. The relevant internal psychological process that is associated with purchase decision is integration. and feelings. There are 5 stages of a consumer buying process [6] they are: The problem recognition stage.[6] This shows the complete process that a consumer will most likely. the organisation can influence the purchase decisions much more easily. attitude and belief. which means you search your knowledge bases or external knowledge sources for information on the product. Congruence between personality and the way a persuasive message is framed (i.e. meaning the identification of something a consumer needs. beliefs. go through when they go to buy a product. perception.Once the alternatives have been evaluated. attitudes. Blackwell) model was further developed by Rice (1993) which suggested there should be a feedback loop. whether recognisably or not. The possibility of alternative options. knowledge. The search for information. Kollat. The choice to purchase the product and then finally the actual purchase of the product. the consumer is ready to make a purchase decision. while personal factors include income level.. Once the integration is achieved. aligning the message framing with the recipient’s personality profile) may play an important role in 6 . The organisation can use a variety of techniques to achieve this. Psychological factors include an individuals motivation. The provision of credit or payment terms may encourage purchase. Foxall (2005) further suggests the importance of the post purchase evaluation and that it is key because of its influences on future purchase patterns. Postpurchase evaluation The EKB (Engel. personality. age. or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now. motivation. psychographics (lifestyle)sadam . occupation and lifestyle. Sometimes purchase intention does not result in an actual purchase. meaning whether there is another better or cheaper product available. The marketing organisation must facilitate the consumer to act on their purchase intention.

Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. social class. five advertisements (each designed to target one of the five major trait domains of human personality) were constructed for a single product. royalty. In 2005. sub-culture. Tata Motors. Behaviour can also be affected by external influences. Spain. South Korea. Through subsidiaries and associate companies. a global leader in body-building for buses and coaches to manufacture fully-built buses and coaches for India . Among them is Jaguar Land Rover. The results demonstrated that advertisements were evaluated more positively the more they cohered with participants’ dispositional motives. while also exporting these products to several international markets.the plant is located in Dharwad.. market mix factors. such as culture. and entered the market in 2008. In 2004. Tata Motors' joint venture with Tata Africa Holding (Pty) Ltd. South Korea's second largest truck maker. family. a reputed Spanish bus and coach manufacturer. has emerged as an international automobile company. Tata Motors has operations in the UK. lifestyle. Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006. also listed in the New York Stock Exchange (September 2004).ensuring the success of that message. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. and subsequently the remaining stake in 2009. Tata Motors acquired a 21% stake in Hispano Carrocera. In a recent experiment. Thailand. it acquired the Daewoo Commercial Vehicles Company. set up in 7 . Marcopolo. South Africa and Indonesia. locality. ethnicity. past experience reference groups. acquired in 2008. Tata Motors formed a 51:49 joint venture with the Brazil-based. In 2006. Tata Motors (SA) (Proprietary) Ltd. Hispano's presence is being expanded in other markets. [7] Tailoring persuasive messages to the personality traits of the targeted audience can be an effective way of enhancing the messages’ impact.

semi knocked down (SKD) kits.2011. the Tata Indica. Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and. north of Pretoria. Lucknow. carrying capacity. they will introduce new benchmarks in India and match the best in the world in performance at a lower life-cycle cost. the Middle East. In 2005. established in 1966. The company's commercial and passenger vehicles are already being marketed in several countries in Europe. Tata Motors is also expanding its international footprint. Ukraine. in India in March 2009. The plant can assemble. In their power. and subsequently in 2011 8 .500 engineers. South East Asia. the company launched its globally benchmarked Prima range of trucks and in 2012 the Ultra range of international standard light commercial vehicles. South Asia. and the ability to translate them into customerdesired offerings through leading edge R&D. Tata Motors unveiled its People's Car. speed. In January 2008. and Senegal. in 1998. established through exports since 1961. as planned. and the UK. CIS and Russia. Jamshedpur. South America. It was Tata Motors. The foundation of the company's growth over the last 66 years is a deep understanding of economic stimuli and customer needs. The company today has R&D centres in Pune. Tata Motors created a new segment by launching the Tata Ace. India's first indigenously developed mini-truck. Spain. Africa. and in South Korea. Dharwad in India. medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes. The Tata Nano has been subsequently launched. has enabled pioneering technologies and products. operating economy and trims. It has franchisee/joint venture assembly operations in Bangladesh. has an assembly plant in Rosslyn. India's first fully indigenous passenger car. In 2009. the Tata Nano. light. With over 4. scientists and technicians the company's Engineering Research Centre. which launched the first indigenously developed Light Commercial Vehicle in 1986.

It has also been implementing several environment-friendly technologies in manufacturing processes. The company's support on education and employability is focused on youth and women. the company is engaged in engineering and automotive solutions. They range from schools to technical education institutes to actual facilitation of income generation. Through its subsidiaries. Tata Motors began development of an affordable car that would appeal to the many Indians who drive motorcycles. Tata Motors is equally focussed on environment-friendly technologies in emissions and alternative fuels.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features. With the foundation of its rich heritage. by introducing appropriate technologies in vehicles and operations for constantly enhancing environment care. significantly enhancing resource conservation. A development. It has developed electric and hybrid vehicles both for personal and public transportation. The goal of environment protection is achieved through tree plantation. conserving water and creating new water bodies and. and machine tools and factory automation solutions.employability. In health.in Nepal and Sri Lanka. the Nano brings the joy of a car within the reach of thousands of families. as well as a new design concept called Frugal Engineering. [5] 9 . health and environment. History of Tata Nano After having successfully launched the low cost Tata Ace truck in 2005. The activities touch the lives of more than a million citizens. and relying on low cost Indian labor. reducing the amount of steel used in its construction. education. Tata Motors today is etching a refulgent future. Tata Motors is committed to improving the quality of life of communities by working on four thrust areas . last but not the least. vehicle financing. the company's intervention is in both preventive and curative health care. which signifies a first for the global automobile industry. automotive vehicle components manufacturing and supply chain activities.

The Nano is an excellent example of LAPD. [6] However. by Indian rating agency CRISIL.[10] The introduction of the Nano received much media attention due to its low price.000 units although Tata appears intent on maintaining a capacity to produce the car in much larger quantities. and prices did drop 25-30% prior to the launch.[12] but.[15] It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes. Tata motors chose to "outsource 85% of the Nano’s components and use 60% fewer vendors than normal to reduce transaction costs and achieve better economies of scale". E. and India’s Madras Rubber Factory for tougher than normal rear tires. [14] Sales of the Nano's nearest competitor. While that paper may seem to focus on the Indian contribution. Institute and Trilix for styling and exterior design. America’s Johnson Controls for the seating system. some 250. news reports have detailed the underwhelming response of the Indian consumer to the offering. In July 2012.“Frugal Engineering” was a term coined in 2006 by Renault Chief Executive Carlos Ghosen to describe the design process behind the Tata Nano. sales in the first two fiscal years after the car's unveiling remained steady at about 70. the existing economies of scale from other manufactures are not to be ignored. The "LAPD (lean principle applied product development) process is implemented with utilization of external sources of knowledge and utilization of the digital technology that support the product development process in order to complement the weakness of technological capability. India’s Sona Koyo for lightweight steering shafts. said that the car has immense potential in the 10 . A. “A Study on [7] Consumer Perceptions & Expectations for Tata Nano” shows that the bottom of the pyramid is not very aware of what they are getting when purchasing a Tata Nano. Italy’s I. however." [9] While the Nano is engineerd from the bottom up. should the need arise. Ratan Tata. as of late 2012. Japan’s Toyo for the engine-cooling Germany’s Behr for the heating. thought the Nano would expand the nation's car market by 65%. Tata Group Chairman. For the Nano. the Maruti 800.D. Expectations and effects Expectations created for the car during the run up to its production may have been out of proportion with its realized success.000 per year. fell by 20% immediately following the unveiling of the Nano. ventilating.” [8] So to call it the Indian Car is understandable. the Nano was a truly international effort. “Tata turned to Germany’s Bosch for a new engine-management system.[13] It was anticipated that its 2009 debut would greatly affect the used car market. and air-conditioning system. but misleading. A 2008 study. This type of design concept was designed to better the those at the bottom of the pyramid.

60. due to a large amount of soft-loan offered by the Gujarat government.1% and with the loan to be paid back in 20 years.developing world while admitting that early opportunities were wasted due to initial problems. instead. as of 2012. The land that government sold to the company was done so for under half of its market value. 9570 Crores. or 100.000 per car. [21] This is just another example of a developing country (or in this case. Tata aimed for a price of one lakh rupees. The opposition is also claiming that the project is actually heavily subsidied by the people to the tune of Rs. which is more than Tata's investment.[ Singur factory pullout Tata Motors announced in 2006 that the Nano would be manufactured in Singur. The government also promised to put up a waste disposal plant. The Gujarat plant came under severe criticism from sections of society.[24] Increasing material costs may be to blame for this rapid rise in price.000. however. The conservative estimates start at 800 million $US.[17] Local farmers soon began protesting the forced acquisition of their land the new factory entailed.000 US at the time. with a meagre interest rate of 0. The farmers who agreed to lease their land to Tata motors found out afterward that they would not receive any compensation. and. The Gujarat government offered a loan of Rs. the price for the basic Nano is around 150.[25] 11 . paying incentives which are too high in the hopes of landing some investment. which is more than half of the initial offer price of the car.[23] Only the very first customers were able to purchase the car at that price. registration and transfer charges of land. This is where the savings lie. [20] This subsidization comes in many forms. Gujarat Factory Controversy The plant was moved to Gujarat after the controversy in Singur. Gujarat. supply natural gas through a pipeline and provide 100 acres near Ahmedabad for a township. West Bengal. which was approximately $2.[17] Tata first delayed the Nano launch and later decided to build the car in a different state.000. a state). The government also promised to build a four-lane road and give exemption on electricity duty. [19] The opposition parties alleged mass corruption in the project. Price Announced as the least expensive production car in the world.

987 today.Compared to the Volkswagen Beetle it has a relatively low price. In 1990. The 800 version will be the last among the three upgraded versions of Nano. unnecessary due to its light weight[11] Three lug nuts on the wheels instead of the usual four (also seen on Smart) [29] Only one wing mirror[11] Radio or CD player is optional (the idea picked on some basic car models in North America) [11] No airbags on any model [30] 624cc rear engine has only 2 cylinders (recently implemented in new Fiat 500. however. The car complies with BS4 Indian emission standards and can also meet European emission standards as well. Technical specifications The Nano (2012) is a 38 PS (28 kW. The development of the Nano had led to 31 Design and 37 Technology patents being filed Radical powerplants 12 . Cost-cutting features The Nano's design implements many measures that make its manufacture cheap. equivalent to $21.[26] about $9. 37 hp) car with a two-cylinder 624 cc rear engine. a Beetle from Mexican factories was priced at $5. Most probably the car will be launched by 2013-end and it will have a competitive price tag of around Rs. the car will feature an 800cc engine and will compete with the segment topper Maruti Suzuki Alto 800.5 lakh. The Ford Model T's initial price was about $850.[28] One windscreen wiper instead of the usual pair (also seen earlier on certain Citroen and Mercedes models) [11] No power steering. as the rear hatch does not open. • The Nano's trunk is only accessible from inside the car.300.428 in today's money. while other two Tata Nano Diesel and Nano CNG will be launched shortly. with a surcharge) [11] No air conditioning in base model (as on most basic car models in Europe and North America) • • • • • • • • Tata Nano 800 There are reports for a larger capacity Tata Nano. 2.

[41] no such car is currently on the market. Also.[43] A Norwegian electric car specialist. The Nano is only available in a Petrol version.[42] use lithiumion batteries. has been named as a supposed partner in the project.[38] Tata Motors have not confirmed this but have stated: "As of now there is no Diesel variant of the Nano.[40] European export An upscale Nano concept car called the Europa was shown at the 2009 Geneva Motor Show.[40] and while it showcased an electric vehicle Nano at the 2010 Geneva Motor Show.While the Nano is driven by a petrol engine. 13 . Compressed-air engine Tata Motors signed an agreement in 2007 with a French firm.[36] While the vehicle was supposed to be able to travel approximately 200 kilometres (120 mi) on $3 US of electricity to compress the air. and have a range of 80 miles (130 km). an upscale version was shown at an autoshow." Electric vehicle Tata has discussed the possibility of producing an electric version. Tata's Vice President of Engineering Systems confirmed in late 2009 that vehicle range continues to be a problem. to produce a compressed air car Nano. If an EV Nano is sold it is expected to be the "world's cheapest electric car". Diesel A website has speculated that the Nano might be made available with a diesel engine. Miljøbil Grenland AS. Motor Development International. several more-radical powerplants have been proposed but not put into production.

LITERATURE REVIEW 14 .

Small-car concept The Tata project bore none of the above usual stamps of success. 15 . Tata’s capture of the “small car concept” is in itself hardly path-breaking. This perhaps indicates that the real game is one of strategy. it is not so much about cars or of experience as about getting clear the underlying concepts and attitudes. Some known facts Not too long ago. Yet it is pretty hard to term Nano anything but a success going by the reception it received. admittedly. Indeed. But the Tata offering has come to topple all those casts by reordering the status-quo. deeper portfolio of cars are rightly believed to be able to gain more profitably from a radical but relevant offering. are able to reap from the economies of scale that can be got from sharing the costs of design. it is not so much about cars or of experience as about getting clear the underlying concepts and attitudes. New launches basically add a whistle here and a bell there to the plethora of existing models. it is often acknowledged. Ratan Tata drove on to the stage in his Nano. And. Yet it is pretty hard to term Nano anything but a success going by the reception it received. Tata's capture of the "small car concept" is in itself hardly path-breaking. It looks like. that sports a far lower powered engine and which may soon storm the Indian roads. many of the same pundits who had bemoaned the twilight of Maruti 800 have now begun to celebrate the business sense that the Nano exudes. Surprisingly. therefore. in more than 70 car launches worldwide. Small-car concept The Tata project bore none of the above usual stamps of success. manufacture and retail. The first one is true to the old adage among businesses that the wise profit from giving that which profits their customers. In fact. Indeed. Yet. pack up. there have been not more than a handful of seminal shifts within this industry.LITERATURE REVIEW Article 1 :What gave Nano a headstart ? The Nano could potentially challenge the conventional wisdom within the auto industry that wholly new concepts do not live long enough. We also knew that products conceived for specific markets have less possibility of success than those visualized on a global basis. auto majors with a wider. just into 2008. a glowing Mr. the Tata Nano project has defied textbook constructs of successful venturing. among their entire product line-up. in any case. the second dares to contrarily create and nurture a space that others overlooked or even rejected. we knew for good reasons that there is much less money to be made in small cars. Ironically. Such manufacturers. The whole story seems to strike two notes at once. Ironically. Indeed. many pundits within the industry had held that small cars such as the Maruti 800 have outlived their use and must. This perhaps indicates that the real game is one of strategy.

in effect. sweet car. One could say that the future Nanos would certainly get their shots of incremental improvement. design. then. and costs) appealingly. brings home the truth that lacking certain advantages can actually prove more rewarding. where a pre-liberalised mid-1980s represented stunted buying power. But. smaller cars. has never been able to obtain a guaranteed cover for assured success. retailing. and so on.almost every other major car company in the world seems to have otherwise just as seriously investigated small cars. The Nano. for sure. they were all. The gamut of idea generation. after taking note of this primordial shift. which kept on surging. Besides the element of price-point . notwithstanding the environment dimension. making. 2008 Article 2: Tata to ride Nano to Geneva Motor Show 16 Tata Motors' Nano. how did Tata Motors achieve such astounding price levels? Indeed.rather than the real demand for small cars . whereas the second creates afresh to fulfill what is widely sought. will make its international debut at the 78th Geneva Motor Show in the first week of . attempting to scale down on what they were traditionally good at: Medium and big cars. The stalwarts of the car industry never quite saw 'small cars' as 'small cars'. is: With so many auto firms zeroing in on small cars. Tata and his team a headstart. in effect. too. in fact. bolder in imagination. Understandably. even after adjusting for the then stronger rupee. It was. The price element And. Nano's price would have still generated a landslide sales record in the mid-1980s. gives the Nano an exceptional welcome thrust. The car industry. # Source : The Hindu Business Line — February 5th. almost none of the global majors had paid due attention to the thought of an all-new small car. nimbler in evaluating and. the processes that colour the making of an inexpensive and cheerful car are not at all 'cheap'.where Tata Motors led the pack on a wide margin . unlike the insurance industry. hardware. Consequently. made all makers gravitate toward more fuelefficient. when global industry majors were talking about a small car with trendy. shrewder in putting together the pieces (ideas. what is important is. That was primarily because of its price. tiny engines. an immensely affordable car (well below a lakh of rupees).had diminished. easily the world's most talked-about car these days. So. the sweetness of Maruti 800 . it was. represents greatly enlarged buying power. differs a great deal between the two perspectives. which enjoys safety cover from reinsurance. What is certainly path-breaking is the price tag of the Nano. If anything. giving Mr. The key question. "today's India" that is to receive the Nano. This. in fact.One recollects that when the Maruti 800 was introduced around the mid-1980s. There is. The first perspective tweaks to fit what is already on hand. over time. India's first small. the persistently high oil prices of the present decade have. Even if we went all the way back before all those price rises and income growth spread over the past two consecutive decades. would be the approaches of many other aspiring small-car makers. Two perspectives Unlike Tata Motors. those processes have to be richer in innovation. of course. Here is where Tata Motors strode ahead. then. concept. a big difference between scaling down a big-sized car to a viable small size.

London on January 11th. education and healthcare. 2008 Article 3: Indian people's car India is one of those developing countries whose economies are expected to be among the world leaders by the middle of this century. This year's edition of the Geneva Motor Show will mark the 11th year of participation for Tata Motors. Tata has produced a car that not only costs pounds 500 less than the cheapest Chinese model. whether roads. PROBLEM DEFINITION Marketing Research Problem: 17 . The world's second most populous nation presents a striking contrast between that kind of industrial clout and the poverty in which most Indians still live. The Nano lies between those two extremes: a car built to attract members of the urban middle class who at present perch on motorcycles. it has undeniably put India on the global automotive map and has triggered a race among leading car makers to match the Nano price-point. thus opening a potentially huge market in the developing world. The five-door hatchback that costs just Rs 100. the country's largest conglomerate. But the unveiling of Tata Motors' Nano car in New Delhi yesterday The headline news is that the Nano will cost only pounds 1. But Tata has also stolen a march on giant vehicle manufacturers such as GM. a company spokesperson said here. # Source :The Economic Times — February 7th. is expected to start in the second half of this year. to take just two examples.300. but also breaks technological ground by having a rear-mounted two-cylinder engine.500). having acquired the Corus metals company last year. making it the world's cheapest. Sales of Nano. The Tata Group. easily the world's most talked-about car these days.March. flat and declining. Nano would be among Tata Motors' exhibits at the show. will make its international debut at the 78th Geneva Motor Show in the first week of March. It has taken out more than 34 patents on technologies used in its manufacture. it is now seeking to buy Jaguar Cars and Land Rover. Ford. That it will add to India's already acute traffic problems should remind the government of how far it has fallen behind in infrastructure development. which Tata Motors has said meets all safety and emission norms. which both saves fuel and creates interior space. At one end of the scale are billionaires such as Vijay Mallya. Africa and Latin America at a time when the European and American markets are. Although the car has its share of critics. nicknamed the people's car for its affordable pricing that will make four-wheelers available to millions of middleclass people who hitherto rode two-wheelers. car manufacturers Renault and Nissan are eyeing a $3000 car. all of which are looking to expand sales in Asia. will share the limelight with top marques from around the world that are expected at the show. V W. The Nano is a remarkable first from a country that still exasperates for its failure to provide basic services. Mitsubishi and Renault-Nissan. Toyota. At the other are the inhabitants of Mumbai's periphery who lack decent housing. epitomizes the global outreach of modern India. 2008. Tata Motors' Nano. Its technological skill and financial clout have already made an impact in the IT industry and the international cricketing arena. who is promoting India as a Formula 1 racing power. # Source : As published in The Daily Telegraph. The Nano. respectively. was unveiled in January this year at the Auto Expo here.000 ($2. electricity or water. Already.

“To find out the consumer perception on TATA’S NANO in Bangalore city. LIMITATIONS:  The accuracy of the responses given by the respondents. There has been lot’s of excitement and enthusiasm among the mass for the product. FORUM Mall.  Language was a barrier between the interviewer and the respondents to collect the responses.  To find out the Acceptance level of people. SECONDARY DATA COLLECTION: 18 . The group was divided into three groups of 2 interviewers each who interviewed respondents at the above mentioned locations.  To find out the awareness level about TATA “NANO”. Objective of the Study:  To know the consumer perception on TATA “NANO”. The respondents were interviewed from 4thMar-7th Mar 2009. To find out how the common mass perceives the product and how should TATA Motors position “NANO” it is important to conduct a research.  To find out the target segment for TATA NANO RESEARCH METHODOLOGY RESEARCH DESIGN: Descriptive Research Method SAMPLING PROCEDURE: Sampling Plan: Convenient Sampling (Non-Probabilistic Sampling Method) Sample Size: 100 respondents QUESTIONNAIRE DESIGN: The research was done on the basis of a structured questionnaire FIELD WORK PLAN: 100 respondents were interviewed in and around the Alliance Central campus.” TATA’s NANO will be launched on 23rd March 2008. BTM Stage 1 & 2 and Kormangala areas of Bangalore. DATA COLLECTION Data was collected from the following two sources: PRIMARY DATA COLLECTION: Primary Data was collected through “SURVEY” using a structured questionnaire through which the research was able to get an insight in to the consumers mind and to learn about perception towards “NANO”.  Data was collected from the limited locations of Bangalore. therefore findings cannot be generalized for the whole city or country.  To know about factors affecting purchase decision of TATA “NANO”. Anekal.

articles and earlier reports. journals. 19 . Secondary Data helped in finding the variables that has an effect on the perception made by the people towards TATA Nano.Secondary Data was collected through magazines.

Company Profile 20 .

powerful engine and an aggressive marketing strategy made it one of the best selling cars in the history of the Indian 21 . Thailand and the United Kingdom. Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial Vehicles Company in 2004 and the British premium car maker Jaguar Land Rover in 2008.[3] Tata Motors has auto manufacturing and assembly plants in Jamshedpur. which ended in 1969.. Tata launched the Indica in 1998. Spain. its excellent fuel economy.A. Jamshedpur.[4] Tata Motors entered the passenger vehicle market in 1991 with the launch of the Tata Sierra and in 1998 launched the first fully indigenous Indian passenger car. Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra. and the United Kingdom.Tata Motors Limited (formerly TELCO) is an Indian multinational automotive manufacturing company headquartered in Mumbai. Tata Marcopolo. and in Argentina. Lucknow. and in South Korea. coaches. After years of dominating the commercial vehicle market in India. India. South Africa. Lucknow and Dharwad. India's first sports utility vehicle). Founded in 1945 as a manufacturer of locomotives. India. After the launch of three more vehicles. LCV) and Tata Safari (1998. where it is a constituent of the BSE SENSEX index. Although initially criticised by auto-analysts. a station wagon design based on the earlier 'TataMobile' (1989). Maharashtra. vans.[3 History Tata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany. the first fully indigenous Indian passenger car. the Indica. Dharwad and Pune. Tata Sumo (1994. It has a bus manufacturing joint venture with Marcopolo S. Its products include passenger cars. Sanand. Tata Motors is ranked 314th in the 2012 Fortune Global 500 ranking of the world's biggest corporations. fourth-largest truck manufacturer and second-largest bus manufacturer by volume. It has research and development centres in Pune. and a construction equipment manufacturing joint venture with Hitachi. Telcon Construction Solutions. India and a subsidiary of the Tata Group. trucks. Pantnagar. the National Stock Exchange of India and the New York Stock Exchange. Tata Estate (1992. the company manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG. a light commercial vehicle). It is the world's eighteenth-largest motor vehicle manufacturing company. a multi utility vehicle. buses and military vehicles. Tata Motors is listed on the Bombay Stock Exchange.

Tata Daewoo and Tata Hispano. Tata formed a joint venture with the Brazil-based Marcopolo. later renamed Tata Daewoo.[7] Tata Motors continued its market area expansion through the introduction of new products such as buses (Starbus & Globus. named Indica V2. the United Kingdom. to manufacture fully built buses and coaches. the SAARC countries and the MiddleEast by the end of 2009. was a major improvement over the previous version and quickly became a mass-favorite. South Korea. Tata Motors also successfully exported large quantities of the car to South Africa.[8] In 2008. The success of Indica played a key role in the growth of Tata Motors. Tata Marcopolo Bus.[6] In 2005. Daewoo Commercial Vehicles Company.[16] Operations Tata Motors has vehicle assembly operations in India. Land Rover and Daimler luxury car brands.[5] In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit. Spain and South Africa.[9][10][11] [12] In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo.85 million.automobile industry. 22 .[17] Tata Motors' principal subsidiaries include Jaguar Land Rover. The acquisition formed part of the company's plan to enhance its styling and design capabilities. from Ford Motor Company. Tata Motors acquired the British car maker Jaguar Land Rover. Thailand. jointly developed with subsidiary Hispano Carrocera) and trucks (Novus. manufacturer of the Jaguar.[14] In 2010.[13] Tata acquired full ownership of Hispano Carrocera in 2009.[13] Debuting in South Korea. It plans to establish plants in Turkey. Tata Motors acquired a 21% controlling stake in the Spanish bus and coach manufacturer Hispano Carrocera. Tata Motors announced it will invest around 6 billion on developing Futuristic Infantry Combat Vehicles in collaboration with DRDO. Indonesia and Eastern Europe. In 2006. A newer version of the car. jointly developed with subsidiary Tata Daewoo). South Africa. Tata Motors acquired an 80% stake in the Italy-based design and engineering company Trilix for a consideration of €1.[15] In 2012.

Lucknow (Uttar Pradesh). Tata Daewoo • Company's global plans to reduce domestic exposure. • To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus from Daewoo’s (South Korea) (TDCV) platform.[20] It has the 3rd largest Sales and Service Network after Maruti Suzuki and Hyundai. The reasons behind the acquisition were: 23 . Since the domestic commercial vehicle sales of the company are at the mercy of the structural economic factors. This was mainly to cater to the international market and also to cater to the domestic market where a major improvement in the Road infrastructure was done through the National Highway Development Project. Ukraine. Tata's dealership. Pantnagar (Uttarakhand) and Dharwad (Karnataka). service and spare parts network comprises over 3500 touch points. The domestic commercial vehicle market is highly cyclical in nature and prone to fluctuations in the domestic economy. Spain and South Africa.[18] Tata has dealerships in 26 countries across 4 continents.[19] Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent. The company plans to diversify into various markets across the world in both MHCV as well as LCV segments. Tata has a growing consumer base in Italy. Tata plans to leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time.[17] Tata also has franchisee/joint venture assembly operations in Kenya. Bhutan. In 2004. Bangladesh. Bangladesh.Tata Motors Cars Tata Motors is among the top three in passenger vehicles in India with products in the compact. sales. namely India. The company is establishing a new plant at Sanand (Gujarat). midsize car and utility vehicle segments. Sri Lanka and Nepal. Pune (Maharashtra). Russia and Senegal. Tata Motors acquired Daewoo Commercial Vehicle Company of South Korea. it is increasingly looking at the international markets.[17] The company’s manufacturing base in India is spread across Jamshedpur (Jharkhand). Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India. Tata Motors has a high domestic exposure of ~94% in the MHCV segment and ~84% in the light commercial vehicle (LCV) segment.

It also owns the currently dormant Daimler. 24 . Morocco. with production facilities and infrastructure based at Jamshedpur. [22] Its principal activity is the development. Under Tata ownership.[7] and acquired the remaining 79% for an undisclosed sum in 2009. HVAL and HVTL have been amalgamated ton HVAL and is renamed as TML Drivelines Ltd. Lanchester and Rover brands. Tata Hispano has plants in Zaragoza. is a bus and coach cabin manufacturer based in Zaragoza. manufacture and sale of Jaguar luxury and sports cars and Land Rover premium four wheel drive vehicles. Aragon. HV Transmission and HV Axles HV Transmission (HVTL) and HV Axles (HVAL) are 100% subsidiary companies of Tata Motors engaged in the business of manufacture of gear boxes and axles for heavy and medium commercial vehicles. Jaguar Land Rover has launched new vehicles including the Range Rover Evoque. Volvo and Navistar into the Indian market. Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truck and buses including GloBus and StarBus. United Kingdom and has been a wholly owned subsidiary of Tata Motors since June 2008.Tata Daewoo is the second-largest heavy commercial vehicle manufacturer in South Korea.[ Tata Hispano Tata Hispano Motors Carrocera. S. Tata will start developing a new line to manufacture competitive and fuel efficient commercial vehicles to face the competition posed by the entry of international brands like Mercedes-Benz. Jaguar F-Type and the fourth-generation Range Rover. making it a fully owned subsidiary. when it was acquired from Ford Motor Company. Jaguar Land Rover Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley. Spain and a wholly owned subsidiary of Tata Motors. Tata Motors first acquired a 21% stake in Hispano Carrocera SA in 2005.[23] Jaguar Land Rover has two design centres and three assembly plants in the UK. In 2012. Spain and Casablanca.A. subsequently renamed Tata Hispano. Coventry.

European Technical Centre The Tata Motors European Technical Centre (TMETC) is an automotive design.[24] Joint ventures Tata Marcopolo Tata Marcopolo is a bus manufacturing joint venture between Tata Motors (51%) and the Brazil-based Marcopolo S. The joint venture manufactures and assembles fully built buses and coaches targeted at developing mass rapid transportation systems. and know-how in processes and systems for bodybuilding and bus body design from Marcopolo. engineering and research company based at the campus of the University of Warwick in the United Kingdom. Hyderabad. Tata Technologies is a software service provider in the IT services and BPO space.A. TTL is based in Pune (Hinjawadi) and operates in the United States and Europe through its wholly owned subsidiaries in Detroit and London respectively. Its global client list includes Ford. General Motors. Pune.91% of TTL’s share capital. It was established in 2005 and is a wholly owned subsidiary of Tata Motors. Its manufacturing facility is based in Dharwad. Tata Motors holds 86. Mumbai. Tata Marcopolo has launched a low-floor city bus which is widely used by Chennai. Trivandrum and Bengaluru transport corporations. TTL acquired the British engineering and design services company Incat International Plc for 4 billion in August 2005. Coimbatore. aerospace and engineering markets.Tata Technologies Tata Technologies Limited (TTL) provides engineering and design services to the automotive industry. Delhi. Kochi. It utilises technology and expertise in chassis and aggregates from Tata Motors. 25 . (49%). It also has a presence in Thailand. Incat specializes in engineering and design services and product lifecycle management in the international automotive. It was the joint developer of the World Truck. Toyota and Honda. Lucknow.

Fiat India Automobiles Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel engine technology.[25] Tata Motors sells Fiat cars in India through a 50/50 joint venture Fiat Automobiles India Limited, and is looking to extend its relationship with Fiat and Iveco to other segments. Telcon Construction Solutions Telcon Construction Solutions is a joint venture between Tata Motors and Hitachi Products Commercial vehicles
• • • • • • • • • • • • • • • • •

which

manufactures

excavators

and

other

construction

equipment.

Tata Ace Tata Ace Zip Tata Super Ace Tata TL/Telcoline/207 DI Pickup Truck Tata 407 Ex and Ex2 Tata 709 Ex Tata 809 Ex and Ex2 Tata 909 Ex and Ex2 Tata 1109 (Intermediate truck) Tata 1512 (Medium bus chassis) Tata 1612/1616 (Heavy bus chassis) Tata 1618 (Semi Low Floor bus chassis) Tata 1623 (Rear Engined Low Floor bus chassis) Tata 1518C (Medium truck) Tata 1613/1615 (Medium truck) Tata 2515/2516 (Medium truck) Tata Starbus (Branded Buses for city, inter city, school bus and standard passenger transportation) Tata Divo (Hispano Divo; Fully built luxury coach) Tata CityRide (12 – 20 seater buses for intra-city use) Tata 3015 (Heavy truck) Tata 3118 (Heavy truck) (8×2)
26

• • • •

• • • • • • •

Tata 3516 (Heavy truck) Tata 4018 (Heavy truck) Tata 4923 (Ultra-Heavy truck) (6×4) Tata Novus (Heavy truck designed by Tata Daewoo) Tata Prima (The World Truck designed by Tata Motors and Tata Daewoo) Tata Prima LX (Stripped down version of Tata Prima) Tata Ultra (ICV Segment) Tata LSV (Light Specialist Vehicle) Tata Mine Protected Vehicle (4×4) Tata 2 Stretcher Ambulance Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions Tata LPTA 713 TC (4×4) Tata LPT 709 E Tata SD 1015 TC (4×4) Tata LPTA 1615 TC (4×4) Tata LPTA 1621 TC (6×6) Tata LPTA 1615 TC (4×2) Tata Winger Passenger Mini Bus Tata Landrover 1515 F

Military vehicles
• • • •

• • • • • • • •

Electric vehicles Tata Motors has unveiled electric versions of the Tata Indica passenger car and the Tata Ace commercial vehicle, both of which run on lithium batteries. The company has indicated that the electric Indica would be launched locally in India in about 2010, without disclosing the price. The vehicle would be launched in Norway in 2009.[26] Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of Norway for US$1.93 million, which specialises in the development of innovative solutions for electric vehicles, and plans to launch the electric Indica hatchback in Europe next year. [27][28][29] In September 2010, Tata Motors presented four CNG–Electric Hybrid low-floored Starbuses to the Delhi Transport Corporation, to be used during the Commonwealth games. These were the first environmentally friendly buses to be used for public
27

History of Tata Nano After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began development of an affordable car that would appeal to the many Indians who drive motorcycles.[4] The purchase price of this no frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low cost Indian labor, as well as a new design concept called Frugal Engineering.
[5]

“Frugal Engineering” was a term coined in 2006 by Renault Chief Executive Carlos Ghosen to describe the design process behind the Tata Nano. This type of design concept was designed to better the those at the bottom of the pyramid.
[6]

However, “A Study on
[7]

Consumer Perceptions & Expectations for Tata Nano” shows that the bottom of the pyramid is not very aware of what they are getting when purchasing a Tata Nano. While that paper may seem to focus on the Indian contribution, the Nano was a truly international effort. “Tata turned to Germany’s Bosch for a new engine-management system; Italy’s I.D. E. A. Institute and Trilix for styling and exterior design; India’s Sona Koyo for lightweight steering shafts; America’s Johnson Controls for the seating system; Japan’s Toyo for the engine-cooling Germany’s Behr for the heating, ventilating, and air-conditioning system; and India’s Madras Rubber Factory for tougher than normal rear tires.”
[8]

So to call it the

Indian Car is understandable, but misleading. The Nano is an excellent example of LAPD. The "LAPD (lean principle applied product development) process is implemented with utilization of external sources of knowledge and utilization of the digital technology that support the product development process in order to complement the weakness of technological capability."
[9]

While the Nano is engineerd from the bottom up, the existing

economies of scale from other manufactures are not to be ignored. For the Nano, Tata motors chose to "outsource 85% of the Nano’s components and use 60% fewer vendors than normal to reduce transaction costs and achieve better economies of scale".[10] The introduction of the Nano received much media attention due to its low price. Expectations and effects Expectations created for the car during the run up to its production may have been out of proportion with its realized success. A 2008 study, by Indian rating agency CRISIL, thought the Nano would expand the nation's car market by 65%,[12] but, as of late 2012, news reports
28

000 per car. fell by 20% immediately following the unveiling of the Nano.[15] It is unknown if the Nano has had a lasting effect on the prices of and demand for close substitutes.000 per year. the Maruti 800. [21] This is just another example of a developing country (or in this case. The farmers who agreed to lease their land to Tata motors found out afterward that they would not receive any compensation. [20] This subsidization comes in many forms. The government also promised to put up a waste disposal plant. supply natural gas through a pipeline and provide 100 acres near Ahmedabad for a township. The opposition is also claiming that the project is actually heavily subsidied by the people to the tune of Rs.1% and with the loan to be paid back in 20 years. instead.[13] It was anticipated that its 2009 debut would greatly affect the used car market. Gujarat Factory Controversy The plant was moved to Gujarat after the controversy in Singur. The land that government sold to the company was done so for under half of its market value. a state). some 250. 9570 Crores. should the need arise. and prices did drop 25-30% prior to the launch. paying 29 . [14] Sales of the Nano's nearest competitor. registration and transfer charges of land. due to a large amount of soft-loan offered by the Gujarat government.[17] Tata first delayed the Nano launch and later decided to build the car in a different state.have detailed the underwhelming response of the Indian consumer to the offering. Ratan Tata. sales in the first two fiscal years after the car's unveiling remained steady at about 70. In July 2012. The Gujarat government offered a loan of Rs. said that the car has immense potential in the developing world while admitting that early opportunities were wasted due to initial problems. which is more than half of the initial offer price of the car. The Gujarat plant came under severe criticism from sections of society. however. Tata Group Chairman.[17] Local farmers soon began protesting the forced acquisition of their land the new factory entailed. with a meagre interest rate of 0.[ Singur factory pullout Tata Motors announced in 2006 that the Nano would be manufactured in Singur. West Bengal. The government also promised to build a four-lane road and give exemption on electricity duty. This is where the savings lie. 60. [19] The opposition parties alleged mass corruption in the project.000 units although Tata appears intent on maintaining a capacity to produce the car in much larger quantities. Gujarat.

[24] Increasing material costs may be to blame for this rapid rise in price.987 today.5 lakh.000. 2.[25] Compared to the Volkswagen Beetle it has a relatively low price. a Beetle from Mexican factories was priced at $5. unnecessary due to its light weight[11] Three lug nuts on the wheels instead of the usual four (also seen on Smart) [29] Only one wing mirror[11] Radio or CD player is optional (the idea picked on some basic car models in North America) [11] No airbags on any model [30] 624cc rear engine has only 2 cylinders (recently implemented in new Fiat 500. as of 2012. as the rear hatch does not open.000. Most probably the car will be launched by 2013-end and it will have a competitive price tag of around Rs. or 100.[23] Only the very first customers were able to purchase the car at that price.000 US at the time. with a surcharge) [11] No air conditioning in base model (as on most basic car models in Europe and North America) • • • • • • • • Tata Nano 800 There are reports for a larger capacity Tata Nano. In 1990. however. equivalent to $21. the price for the basic Nano is around 150.[28] One windscreen wiper instead of the usual pair (also seen earlier on certain Citroen and Mercedes models) [11] No power steering. and. which was approximately $2. The conservative estimates start at 800 million $US. • The Nano's trunk is only accessible from inside the car. Price Announced as the least expensive production car in the world. however.428 in today's money. the car will feature an 800cc engine and will compete with the segment topper Maruti Suzuki Alto 800.[26] about $9. The 800 version will 30 .incentives which are too high in the hopes of landing some investment. The Ford Model T's initial price was about $850. Cost-cutting features The Nano's design implements many measures that make its manufacture cheap. which is more than Tata's investment.300. Tata aimed for a price of one lakh rupees.

while other two Tata Nano Diesel and Nano CNG will be launched shortly. The car complies with BS4 Indian emission standards and can also meet European emission standards as well. 37 hp) car with a two-cylinder 624 cc rear engine. The development of the Nano had led to 31 Design and 37 Technology patents being filed Radical powerplants While the Nano is driven by a petrol engine.be the last among the three upgraded versions of Nano. Miljøbil Grenland AS." Electric vehicle Tata has discussed the possibility of producing an electric version. Diesel A website has speculated that the Nano might be made available with a diesel engine. The Nano is only available in a Petrol version.[45] The company denied those were connected to the car’s design or its parts 31 . Also. to produce a compressed air car Nano. several more-radical powerplants have been proposed but not put into production.[40] and while it showcased an electric vehicle Nano at the 2010 Geneva Motor Show. Tata's Vice President of Engineering Systems confirmed in late 2009 that vehicle range continues to be a problem.[43] A Norwegian electric car specialist. Car fires There were reports of several fire incidents involving the Nano. Technical specifications The Nano (2012) is a 38 PS (28 kW. and have a range of 80 miles (130 km). If an EV Nano is sold it is expected to be the "world's cheapest electric car". Compressed-air engine Tata Motors signed an agreement in 2007 with a French firm.[36] While the vehicle was supposed to be able to travel approximately 200 kilometres (120 mi) on $3 US of electricity to compress the air.[42] use lithiumion batteries.[38] Tata Motors have not confirmed this but have stated: "As of now there is no Diesel variant of the Nano.[41] no such car is currently on the market. Motor Development International. an upscale version was shown at an autoshow.[40] European export An upscale Nano concept car called the Europa was shown at the 2009 Geneva Motor Show. has been named as a supposed partner in the project.

[45] Tata extended the warranty on the car. done based on geography. Consumer Decision making process in buying TATA Nano. service tax and the other registration fees. in the category of transportation TATA NANO: THE PEOPLES’ CAR One of the greatest strengths of NANO is its tiny price tag.and blamed “foreign electrical equipment” found on top of the exhaust system.1. 32 .641. “ONE LAKH CAR that drives ONE BILLION DREAMS” and “The World’s cheapest car” without compromising on quality.00. TATA positioned NANO in peoples’ mind as “THE PEOPLES’ CAR”. auto rickshaw segments. rural and urban.79.000. family size and income. first place in the transportation category[48]  2010 Good Design Awards. 1. middle and lower income segments. and on demography. Awards  2010 Business Standard Motoring Indian car of the year[46]  2010 Bloomberg UTV-Autocar car of the year[47]  2010 Edison Awards.30. the next cheapest car in Indian market priced at Rs. safety and ecofriendliness.000 which is cheaper than Maruti 800.000. The starting price is Rs. from 18 months to four years in early December 2010. Segmentation for NANO market is Even its advanced versions like NANO LX will at most cost around 1.84. NANO is targeted at two-wheeler segments. Even after the road tax. including those already sold.[45] The company offered to retrofit the exhaust and electrical systems but refused to recall the cars. NANO base model will work out to be just Rs. second-hand car segments.1.

Even though Tata Nano is the least price 4 seater car in India. in survey 70% people have respondent that buying TATA NANO is as difficult as buying other cars. Need Recognition Information search Evolution of alternative Purchase decision Post purchase evaluation.      33 . HIGH involvement LOW SIGNIFICANT DIFFERENCE FEW DIFFERANCES FIG 1: Buying behaviour To substantiate the above statement. Analysis of stages in complex buying behaviour. it falls in the category of complex buying behaviour.

68% people buy the car driven by safety need. 24% buy a car driven by esteem need. An attempt is made to understand the need recognition process based on Maslow’s theory. To arouse the need for Tata Nano Company should look to aim at 76% people who look for car for safety and basic need knowing the fact that company will not be able to drag the people who want to satisfy esteem need. 8% people buy a car driven by basic need.  Information Search 34 . Fig2: Classification of consumer need. Thus it is clear from the Fig 1. for Tata Nano can be driven either by internal stimuli (Desire/attitude/perception) or external stimuli advertising etc. Need Need Recognition.

dealers. examining the product. Price and point of purchase. A) B) C) D) Personal Sources. Public Sources: Mass media and consumer rating agencies Experiential sources: Demonstration. sales people. friend and neighbours. Commercial sources: Advertising.  Evaluation of alternative: 35 .Family. Company should aim on minimizing the customer cost while seeking these information.In this stage customer wants to find out the information about the Product. Place. display. The research shows that majority of people depend on reference group for information while buying TATA NANO. Fig 3: Preference of channel of information Since buying Tata Nano is complex buying behaviour people seek lots of information and clarification. The company should focus more on customer testimonials and word of mouth communication. While buying a product like car people seek information from different sources like.

After collecting the information. TATA NANO SPARK ALTO 36 . consumers arrive at some conclusion about the product. Even though the price of both the cars is high compare to the NANO people are considering SPARK and ALTO as alternative of TATA Nano.  Point of difference between Maruti Alto. In this stage consumers are comparing different brands based on set parameters which he or she thinks required in the product. An attempt is made to understand the evaluation of alternative “Chevrolet spark and Maruti Alto”. Chevrolet Spark and Tata Nano. Since people are motivated by safety need and Chevrolet safety positioning and 3 years free servicing warranty is able to draw the customer attention. People are considering Chevrolet spark and Maruti Alto as the alternative car. This process differs from consumer to consumer and with respect to Tata Nano some have given importance to the price and for few durability and safety is important. Since it is clear from the above data that majority of the people are buying the car driven by safety need.

This prevents the car from being "hot wired" after entry has been achieved”.23.350 Rs.458 8.361 Rs. The decision of making the particular brand is made after consumer conviction over the alternative product. “An immobiliser or immobilizer is an electronic device fitted to an automobile which prevents the engine from running unless the correct key (or other token) is present.184 Rs. In this stage consumer buy the most preferred brand.915 (for (for Rs.148 5. 2. 3. 36 month loan) 3495 mm 16 km/litre 5 Person 161Km/Hour 36 month loan) 3495 mm 18. dia. The above table shows that there is a difference in the features and consumer has to pay 2915/month extra to get additional features offered by Maruti Alto.29.Price (Ex-Showroom) Rs. (for Rs.3 km/litre 5 Person 137 Km/Hour drum b drum brake Ventilated discs Self-Adjusting Drum Disc Drum We can see that Tata Nano does not have immobiliser.23. 3. which he considers as value for money. 36 month loan) Immobilizer Overall Length Mileage (Highway) Seating Capacity Maximum Speed Front Brakes Rear Brakes 3099 mm 24 km/litre 4 Person 105 Km/Hour 180 180 mm mm dia. 1.  Purchase decision. 37 .

38 . When it comes to the features like engine capacity. Company is promoting the price tagline and that is not enough to motivate the consumers who are derived by complex buying behaviour. There are two factors which are making people to postpone the purchase of Tata Nano. Price is not the factor which is postponing the purchase decision of the consumers. Company should have patience in launching the marketing programme because it is just 19 months since Tata Nano is launched. Diffusion Process:  Majority of people (70% people) adopt the innovative product when it is 1 to 2 year old in the market.  Lack of information: People have complete awareness about the price and 100% people have claimed that they are aware of the price of Tata Nano. Post purchase evaluation:  After purchasing the product consumer will experience some level of satisfaction and dissatisfaction. safety people have mixed response and it reveals that company has not paid attention in communicating the features. mileage. People are still waiting to watch out this car and they are postponing the decision of buying this car.Since research has revealed that people do not postpone the purchase of Tata Nano because it is difficult to make the payment.

8o% Average Safe Equally safe Safe 20% The above data shows that company has to clearly work on safety point of view and has to come up with the innovative safety measures to increase the satisfaction level. finishing of the car. Company should make use of these happy users in word of mouth advertisement.20% of people feel that it is equally safe as big cars. 20% people are dissatisfied and they are dissatisfied due to interior of the car. Satisfaction:Dissatisfied 8o% Satisfied 20% 80% of the users are satisfied with the car and they feel that they have got what was promised by the company and they are happy to refer this car to others. made just before a purchase .One who tends to make such purchases is referred to as an impulse purchaser or 39 . An impulse purchase or impulse buy is an unplanned decision to buy a product or service. delivery time and front view.An attempt is made to measure the satisfaction level of TATA NANO users after the purchase and the security concerns which is raised by many prospective users of TATA Nano. Safety: Safety is still the concern with the existing users and 80% of the people feel that they feel Average safe while driving Tata Nano as big cars.  Role of impulse purchase in decision making process.

 Who will buy the Tata Nano? If online polls are an indication. Target Audience. And. People are postponing the purchase of Tata Nano waiting for the first car. Marketer can influence the consumer in choosing the colour and accessories. they will be less than 25 years. 39% of the respondents felt that the average Nano buyer will be under 25 years of age while 81% agreed that the Nano buyer will be less than 40 years. The target audience of the company are the people who belong to lower 40 .impulse buyer." who were the main inspiration behind the Nano. The research has shown that company should craft and execute different strategy towards target audience and the positioning of the car should be changed. a bulk of the potential buyers for the Nano is predominantly male. Research findings suggest that emotions and feelings play a decisive role in purchasing. Consumers do not take the decision of buying a car immediately and follows the pattern of decision making process very religiously thus impulse purchase is not relevant in buying Tata Nano. • Research has shown that people prefer Tata Nano as the second car. however it can play an Important role in choosing the accessories of the car. In one online poll. . despite of their ability to pay for the costly cars. The research has also shown that people wait for 1 to 2 year before buying the product like Tata Nano. target audience of TATA Nano "hum-do-hamare-do families. The research has shown that buying a Tata Nano falls under complex buying behaviour despite the low price. triggered by seeing the product or upon exposure to a well crafted promotional message. If online polls at social networking sites are some indication.

Once the target audience know the driving it will be easier for the company to identifies anticipates and satisfies customer requirements profitably. Fig 4. Company should give them the exchange offer and offer them good resell price of bike.middle class and lower class. Company should launch a marketing programme to teach driving to the target audience. Company should keep in the mind the fact that apart from price consumers are looking for many other aspects while buying a car. • Research has shown that most of the Target audience likes the advertisement which is informative followed by which shows the safety.consumer preference of Tata Nano • 80% of the lower middle class and lower class people do not know driving and thus they are comfortable riding the bike. • Research has shown that most of the Target audience has bike and it is not easy for them to abandon the bike which costs half of the price of Tata nano. Currently the company has the 41 . safety and the benefit to target audience and focused hugely on the price. • Research has shown that company has not communicated the features. Lower middle class and lower class people still purchase the car based on esteem need to improve their social status.

• The company should look beyond the current target audience and should focus on including females in their target audience.advertisement which brings pride which is chosen least by the consumers. Current users are satisfied with the car while prospect users have many uncertainties in mind. Fig5: Advertisement preference by consumers. since most of the female feel that it is compatible and easy to drive. Conclusion:  42 . Company should try to minimize this gap by including the marketing programme which focuses on the word of mouth. • Research also revealed that there is difference in attitude between the prospects and the current users. Company should design the advertisement which combines the information and safety .

which is the key of decision making process. thus making decision making process much simpler for the consumers. Company has to provide the enough information to the consumers. however to sell maximum car to maximum people. Company has to offer test drives to shorten the decision making process of the consumers. Even though Nano comes with the tiny price tags it follows a complex buying behaviour process.The strategy should not be to sell maximum cars to target audience. Company has to work on the positioning of the car and provide more features which eliminates the doubt of safety from the prospects. 43 .

000 employees are guided by the vision to be "best in the manner in which we operate best in the products we deliver and best in our value system and ethics. Tata Motors' presence indeed cuts across the length and breadth of India. The company's 22. The company has won several awards recognising its training programs." Tata Motors helps its employees realize their potential through innovative HR practices. services and spare parts network comprises over 2. Established in 1945. with revenues of Rs. and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). The company's manufacturing base is spread across India Jamshedpur (Jharkhand) in the east. It is the leader by far in commercial vehicles in each segment. and the world's second largest medium and heavy bus manufacturer. midsize car and utility vehicle segments. TML Financial Services 44 . A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car.TATA MOTORS PROFILE: Tata Motors Limited is India's largest automobile company. Over 4 million Tata vehicles ply on Indian roads. The company's goal is to empower and provide employees with dynamic career paths in congruence with corporate objectives. since the first rolled out in 1954. 32. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer.2 billion) in 2006-07. The nation-wide dealership. The company also has a strong auto finance operation. Pune (Maharashtra) in the west. All-round potential development and performance improvement is ensured by regular in-house and external training. and the second largest in the passenger vehicles market with winning products in the compact.426 crores (USD 7.000 touch points. sales.

Tata Motors. The foundation of the company’s growth is a deep understanding of economic stimuli and customer needs. and the ability to translate them into customer-desired offerings through leading edge R&D. India) to produce both Fiat and Tata cars and Fiat power trains for the Indian and overseas markets. Africa. It has assembly operations in Malaysia. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. in 1998. The company's commercial and passenger vehicles are already being marketed in several countries in Europe. Jamshedpur and Lucknow. Hispano's presence is being expanded in other In 2006. The pick-up will be sold in South and Central America and select European markets. the Tata Indica. established through exports since 1961. the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004). and has facilities in Pune. Bangladesh. Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Cordoba. India's first fully indigenous passenger 45 . a global leader in Body-building for buses and coaches to manufacture fully-built buses and coaches for India and select international markets. while also exporting these products to several international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. Korea's second largest truck maker. Ukraine.Limited. It was Tata Motors. both through organic and inorganic growth routes. the company's objective is to expand its international business. The R&D establishment includes a team of 1400 scientists and engineers. In 2006. Tata Motors already distributes and markets Fiat branded cars in India. Argentina. the Middle East. it formed a joint venture with the Brazil-based Marcopolo. with an option to acquire the remaining stake as well. Russia and Senegal. While currently about 18% of its revenues are from international business. In 2004. In 2005. it acquired the Daewoo Commercial Vehicles Company. a reputed Spanish bus and coach manufacturer. Kenya. Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra. The ERC has enabled pioneering technologies and products. Tata Motors acquired a 21% stake in Hispano Carrocera. supporting customers to purchase Tata Motors vehicles. which developed the first indigenously developed Light Commercial Vehicle. South East Asia and South Asia. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market. These linkages will further extend Tata Motors' international footprint. In 2007. The company's Engineering Research Centre was established in 1966. India's first Sports Utility Vehicle and. has also emerged as an international automobile company. Australia.

and automotive retailing and service operations. supporting Tata Motors' skill sets. It consists of 4 major divisions . The NPI process helped Tata Motors create a new segment. Through its subsidiaries. In accordance with this. The process with its formal structure for introducing new vehicles in the market brings in greater discipline in project execution. Tata Daewoo Commercial Vehicle Company and Hispano Carrocera also have R&D establishments at Gunsan in South Korea and Zaragoza in Spain. Jamshedpur: Established in1945. and the CSIR Diamond Jubilee Technology Award in 2004. high-precision tooling and plastic and electronic components for automotive and computer applications.car. Within two years of launch. Pune in the West and Lucknow in the North. Cab & Cowl Factories.Truck Factory. Tata Motors is committed in letter and spirit to Corporate Social Responsibility. The ERC in Pune. machine tools and factory automation solutions. The pace of new product development has quickened through an organisation-wide structured New Product Introduction (NPI) process. development. construction equipment manufacturing. serving rural communities adjacent to its manufacturing locations. It is a signatory to the United Nations Global Compact. India’s first indigenously developed mini-truck. R&D is also focusing on environment-friendly technologies in emissions and alternative fuels. True to the tradition of the Tata Group. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. the company is engaged in engineering and automotive solutions. Engine Factory. Manufacturing: Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenization. in 2005. has received several awards from the Government of India. Some of the more prominent amongst them are the National Award for Research and Development Efforts in Industry in the Mechanical Engineering Industries sector in 1999. all rooted in emerging customer needs. assembly and quality control. is carried out meticulously. Engineering 46 . the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. the National Award for Successful Commercialization of Indigenous Technology by an Industrial Concern in 2000. The company set up the Tata Motors European Technical Centre (TMETC) in 2005 in the UK. it plays an active role in community development. and the Novus. Every stage of product evolution-design. by launching the Tata Ace. With the foundation of its rich heritage. The years to come will see the introduction of several other innovative vehicles. manufacturing. Tata Indica became India's largest selling car in its segment. automotive vehicle components manufacturing and supply chain activities. Tata Motors today is etching a refulgent future. and is engaged in community and social initiatives on labor and environment standards in compliance with the principles of the Global Compact. Besides product development. TMETC is engaged in design engineering and development of products. Our manufacturing plants are situated at Jamshedpur in the East. among whose facilities are India's only certified crash-test facility and hemi-anechoic chamber for testing of noise and vibration.

Division. which has one of the most versatile tool making facilities in the Indian sub-continent. Report: Perception towards TATA “Nano” 7 47 .

safety is of paramount importance. Ace. Different types of accidents are simulated. Thus. The CAD centre is a vital organ of ERC's Cab Design Section. virtual prototyping to check for design acceptability and feasibility of manufacture. at the speed of 50 kilometers per hour. 125 frames recorded by these cameras are available for study with the completion of each individual test. Through a special crash test facility. Minimizing Noise (ANECHOIC CHAMBER): Anechoic chamber is a highly sophisticated noise and vibration laboratory. 48 . for instance. CAD designing involves development of vehicle specifications. A well-equipped torture track enables rigorous and exhaustive testing of modifications before they are used as regular fitments. An accident. lasts one eighth of a second. Engineering Research Centre (ERC): The Research Centre at Jamshedpur regularly upgrades components and aggregates. which in turn breathes new life into products. the nerve centre of which is a vast chamber lined with 88. styling interiors and exteriors. Safety (CRASH TEST FACILITY): For Tata Motors. Designing and Styling (CAD CENTRE): The CAD centre is equipped with 53 state-of-the-art CAD stations and the latest software.000 cones projecting at various angles from the walls and ceiling. The plant will begin commercial production during the course of the year. Special high-speed cameras record test crashes at the rate of 1000 frames per second. reviewing the styling from the engineering and aesthetic points of view. Tata Motors ERC is the only hightech facility in India to evaluate the degree of passenger safety in the event of any high-speed impact. at Pant Nagar in Uttarakhand. It is one of its kinds in India and is developed completely with in-house facilities. the results analyzed. World-class automotive research and development are key factors that contribute to the leadership of the Company. Research: Research & Development: Research provides the much-needed inspiration for the birth of new ideas. and put to use in the development of a vehicle that satisfies stringent international safety norms.Lucknow: Tata Motors Lucknow is one of the youngest production facilities among all the Tata Motors locations and was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. Uttarakhand The company has set up a plant for its mini-truck. This avenue provides no room for the slightest margin of error.

AC : Only in deluxe version Passenger side mirror : No Power steering : No Price : $2500 at dealer + VAT + transport cost.TATA NANO Tata Motors' plans would produce. Base version approximate on-road price: $3000 Tyres : Tubeless tyres. 2 A-Pillars Suspension : Independent front and rear Seldom do we see cars that rewrite the history books even before they are seen running around on the roads. seat belts. Ratan Tata for his determination to build a low cost family car that has come true.5 m Height : 1. Nano is a car which has breathed into life due to one man. 2cylinder. Body : All-steel Safety features : Crumple zones. Give credit to Mr.The little car that might change the world TECH SPECS: Length : 3. all of which put a set of wheels within reach of millions of customers after they rolled onto the scene.1 m Width : 1. Head 49 . all-aluminum Power : 33 BHP Position : Engine. intrusion-resistant doors. for reasons good and evil. And hardly ever do we see cars that vow to put the nation on four wheels. Tata Motors is developing a car it aims to sell for about $2. in real terms. Nano has been the talk of the town around the globe.'s Mini. Volkswagen's Beetle and the British Motor Corp.people) Tata Nano . Touted as world’s cheapest car by a far cry. An Indian car may soon earn a parking place in history alongside Ford's Model T. The Tata Nano is one such car – a car that has been in the news for quite a few years. battery at rear end Boot : In front Fuel : Petrol Fuel injection : MPFI Fuel consumption : 20 kmpl. by far ever made. but the Nano came in a beautiful form. # Source :(NYSE: TTM . finally! Took long it did.news .500 the cheapest. by far the cheapest car ever made.6 m To seat : 4 Engine : 643cc.

the Nano is an extremely sexy looking car with futuristic design cues. and the developing countries drive? The Nano is disruptive tech . The bonnet line is steep and unites together with the bumper in a seamless way. The ultra-secret people's car for India . will make every auto company change the way it works and look at the volume market. For a car of this size and image. The back side of the Nano is made attractive by the mid mounted exhaust pipe which peeps out of the aggressively designed bumper. but in 50 . you are massively wrong. Even I was dumbfounded when I discovered that the Nano cannot be called a hatchback – a word so true to the way the small cars are. How will this car change the way India. The tail lamps are inspired from elder sister. But a hatchback it will be called still.make no mistake. Ground Clearance – 180mm You will be wondering why I am talking about the dimensions of the Nano. Tata Motors has added 40 patents to its kitty. if it becomes a hit. So in essence. DaimlerChrysler said they think it is an important market Tata is trying to tap. What it ensures the Nano with is extremely short overhangs and tight packaging. But you could throw in the Alto and Zen Estilo to mark out some design and packaging aspects. It is because I have good reason to talk about the dimensions.honchos of big organizations have been pouring in by numbers to have a look at this engineering masterpiece. Suzuki has said that it is impossible V W said it is not what they want to do. if you wear one! But before you enter inside. but manages to look really funky and cool. Tata has managed to squeeze out a 60mm advantage in width and Maruti 800 falls short of about 100mm in height. So went at it on a clean slate. Indica. Looks: Length 3100mm Width 1500mm Height 1600mm Wheelbase 2230mm. you are bound to gape in admiration at the beautifully crafted curves of this micro car. Nano is over 230mm shorter than 800 in overall length but the wheelbase advantage of 155mm over the offering from Maruti makes sure that the Nano is more accommodating than the 800. The mono-volume design establishes a sea of change from the two-box layout of the 800. the Nano resembles Mitsubishi’s latest small car ‘i’. We bring you some interesting bits. This car. The reason for this is because it does not have a hatch! The tail gate cannot be opened owing to it being joined together with the boot sill.is here. you get more legroom. the front has a smiling look which accentuates the ‘happy’ feeling. So this is a very compact hatchback. And seems to have pulled it off.the Tata Nano . The world's car manufacturers have expressed all shades of opinion in the runup to the Tata Nano. Though there is no ‘grille’ per se. You see. The rear of the Nano is somewhat recognizable. yes? No my friend. the Nano is going to be faced with Maruti 800 as its main rival. better shoulder room and room more than enough for a turban. In profile. since all of you know that it is a rather compact and tiny machine. The fog lamps are incorporated in the bumper which has a distinct air dam running across in between them. This makes accessing the engine a pain in the bottom. There was no way Tata could design a car the conventional way. I personally feel that the front has a lot of Zen Estilo written on it. The rear engined car will have a small boot for luggage storage in the front. In the process of developing the Nano. Just to get things in perspective. Not only in India.

I know. The car launched is being avidly watched by the auto industry around the world. This is a uni-body construction but makes use of a sub-frame which adds to the strength in addition to providing support for drive train and suspension units. If Tata Motors is right. The suspension has a story of its own altogether! Well. they had to optimize the suspension setup and add a fair amount of other eccentric but equally helpful technical add-ons like fatter rear tyre while the battery box and fuel tank are placed right underneath front occupants. It has 2 A-pillars on one side to better meet safety norms. $3000. a car like this can crowd the streets.and make life a bit tougher in the short-term. Side impact test yet to be done.and as the evolution of the Western industrial society demonstrates. and so did Henry Ford. It will also have a 30-litre fuel tank and four-speed manual gearshift. Airbags are still not a required feature in India. Offering mobility for the masses is big business. The car will come with air conditioning in the deluxe version. Mechanicals: Everyone. The car will have a two-cylinder 624-cc petrol engine with 33 bhp of power.it is to improve the safety of four-member families like this one that rides scooters and at risk every day. Successful mass market mobility does that to a country. But till that happens. 51 . But you have crumple zones. The $ 2500 is the dealer price . intrusion-resistant doors. And there are a million or more of them on the streets of India already. The car will have front disk and rear drum brakes.and Tata Motors anyway claims that the car is as fast as the Maruti 800. the huge two wheeler population of India gains a safety benefit. seatbelts and anchorages. But boy did Tata play it big there! Contrary to everyone’s belief. SAFETY Passes crash tests. But that is not the objective . But Indian maximum legal speeds are way lower than them . Tata engineers said that since the rear-biased weight distribution led to some scary moments while testing the car. we could be witnessing a serious disruptive force and one that might kick-start India on to a high growth path. And so here it is. The VW Beetle did that. and it does not discount the motoring journos.the actual price on the road might be approx Rs. Environmental Impact In India. No airbags. but Tata is confident about it. forcing the government to improve infrastructure . affordable cars can be a major force for change. expected the ‘One Lakh Car’ to have a plastic body. that's pathetic power by American and Western standards. The company claims mileage of 22 kmpl in city and 26 kmpl on highway.entire Asia and every third world country. So to begin with. India's original People's Car that changed things a couple decades back. the Nano is a metal-bodied car with four full-blown doors to ease the ingress and egress. But will it pass the safety requirements of a large car or even a high technology compact? Unlikely. this is a car that can seriously crowd the streets . but will have no power steering. A four wheeler is safe than a scooter.

The Nano will transmit its small amount of power via a 4-speed cable operated gearbox with the fourth being an overdriven ratio. Making the Nano move will be the power of 33 horses which will peak out at 5500rpm while 48Nm of turning force will be supplied at a meager 2500rpm which should help the drivability of the car.The engine is what has been the buzz word around the car. The bore and stroke are nearly similar giving it a ‘square’ form. In addition to the 624cc petrol engine. 52 . Tata is working on developing an automatic gearbox as well but that will not be available when the car gets launched later this year. It is an all-aluminum two cylinder engine displacing 624cc with two valves per cylinder driven by a single overhead camshaft. the Indian auto giant might also bring out a common-rail diesel engine (700cc) which might be of the same architecture as the one seen on Tata Ace.

1 The above mentioned chart clearly shows that out of 100 respondents 64 were males and 36 were females. AGE DISTRIBUTION 53 . DEMOGRAPHIC ANALYSIS GENDER Male Female Total 64 36 100 Table 1.DATA ANALYSIS & INTERPRETATION 1.

PROFESSION Table 1.Table 1.3 54 .2 yrs 30-50 yrs Above 50 yrs Total 64 32 4 100 The above mentioned chart clearly shows that majority of the respondents lies between the age group of 18-50 yrs.

The above mentioned chart clearly shows that out of 100 respondents 64 were males and 36 were females. AGE DISTRIBUTION Table 1.2 The above mentioned chart clearly shows that majority of the respondents lies between the age group of 18-50 yrs.3 55 . PROFESSION Table 1.

The above mentioned chart shows that data was collected from respondents having varied types of occupation. INCOME GROUP 56 . The majority of the respondents were pvt. sector employee and students.

FACTOR ANALYSIS To understand the various parameters affecting the perception of the mass towards TATA Nano. the respondents were interviewed with the help of questionnaire mentioned in the appendix having the variables found from the secondary data. Further analysis was done through factor analysis with the help 57 .Table 1.4 2.

of the decision variables. This shall reduce the complexity.5. of original set of variables to a smaller set of comprehensive factors for use in subsequent multi-variant analysis.2 Total Variance Explained Now from the above table of SPSS output the total no. which means that our research data is appropriate and valid. From the Eigen values of each factor 58 . Therefore through the factor analysis the 13 variables that the perception of the mass can be reduced to lesser no. The output we get after compiling the input data is: KMO and Bartlett's Test Table 2. The goal of the factor analysis is to reduce the no.of SPSS software. Table 2. of factors in which the variables can be classified can be realized. KMO value is greater than 0. of comprehensive factors that can explain the other variables.1 From this table it can be interpreted that the value of KMO is greater than 0. of respondents were more than 5 times the no.5 because no.

919) + Affordability (L value = . we may name as “ . As in this case the Eigen value of 4 factors is more than 1.in the table. = Comfort (L value = . Rotation Method: Varimax with Kaiser Normalization. so the no.927)+ Lifestyle (L value = .898) shall be combined together to get the 2nd major factor. a) Rotation converged in 4 iterations.608% of total variation. The percentage of variance column shows that the total variance explained by each factor. Factor3 = Status (L value = .930) shall be combined together to get the 3rd major factor.952) + Safety (L value = . Upto 68. As in this case the 1st factor explains the total variance up to 29. we may name as “ “. This factor is explaining 16. which we may name as ‘ “. Our 4 factors are as follows - Factor1 Factor2 = Design (L value = .174% are explained by other factors which have not been taken into account.924) + Accessories (L value = . From the above table of output we can identify the distribution of each variable in our selected factors. similarly the entire factors explains the variable. 59 . the factors having Eigen value greater than 1.882) + Mantainence (L value = .704) shall be combined together to get our 1st major factor. Table 2. shall be considered for further analysis.826% of the variables are explained by the 4 factors.3 Rotated Component Matrix(a) Extraction Method: Principal Component Analysis. This factor is explaining 129. This factor is explaining 13.115 % of total variation.294 %. of factors shall be 4. It means 31.830) + Power (L value = .076 % of the variation.

027% of total variation.1 (Responses over Awareness) The above mentioned pie-chart (Graph 3.1) shows that majority of the respondents were aware of the TATA’s Nano.1)and table (Table 3.822). 3. 60 .Factor4 = Interior Space (L value = . This factor is explaining 10. AWARENESS OF TATA NANO Table 3.

e.4. But there is mixed responses over their plan to buy TATA Nano.1(Responses over Acceptance) From the above mentioned chart it can be realised that liking of the respondents towards TATA Nano is very high i. NAME JUSTIFIES THE PRODUCT 61 . TATA Nano is liked by most of the respondents. The rest 28 were neutral. There were around 40 respondents who may buy TATA Nano and there 32 respondents who may not buy. the respondents were interviewed over their liking towards TATA Nano and their Plan to buy on a likert scale. Following were the responses: Table 4. 5. ACCEPTANCE LEVEL OF TATA’S NANO To find out the acceptance level.

7. FEATURE THAT INSPIRES THE MOST TO BUY NANO 62 . 6. NANO OVER BIKE Most of the respondent will not prefer purchasing “Bike” over Nano”.1 shows that most of the respondents believe that the name “NANO” justifies the product.The Graph 5.

COLOUR Most of the respondents preferred yellow and red colour as their preferred colour for “NANO”. 8. 9.Price is the major feature of “NANO” that inspires respondents the most. RECOMMENDATION OF NANO 63 .

11. of groups or clusters showing the same attributes.From the above mentioned graph it can be observed that most of the respondents shall recommend “NANO” to others. CLUSTER ANALYSIS Cluster Analysis is performed to assign the objects into groups (called clusters) so that objects from the same cluster are more similar to each other than objects from different clusters. Therefore in this research. 10. the sample of 100 respondents can be classified into certain no. NANO AS “DREAM CAR” It can be observed from the chart that majority of the respondents do not see “NANO” as their dream car. This form of analysis will basically help the marketer to 64 .

Sector employee and govt. Avg. Therefore it is important for the research to find as to which cluster of people TATA Nano should be targeted. CLUSTER 3: 65 . following output was obtained: CLUSTER 1: This cluster includes 13 respondents. the major profession is Pvt. Here the grouping variables are age. The major characteristics of this cluster are that most of them are females. average monthly income is around Rs. of clusters into which the sample should be classified can be obtained. profession. monthly income. Avg. the age group is between 18-30yrs. of family members are 6. they somewhat like TATA’s Nano but they don’t plan to buy it. K-means Clustering After running the K-means clustering by entering the no. 20000.15000. all are aware of the TATA’s Nano. From this agglomeration schedule it can be observed that the no. following output was obtained: Agglomerative hierarchical clustering First step for clustering shall be Agglomerative hierarchical clustering which breaks up (divisive) a hierarchy of clusters. The next step of classification of sample into clusters is done through K-means clustering. CLUSTER 2: This cluster includes 32 respondents. employee. the major profession is Pvt. awareness of TATA Nano. monthly income is above Rs. they somewhat like TATA’s Nano but they don’t plan to buy it. sex. of clusters as 3. no.position their product in a much effective way by targeting a certain group of individuals. the age group is between 18-50yrs. 10000-Rs. After running cluster analysis through SPSS software using the above mentioned grouping variables. all are aware of the TATA’s Nano. The major characteristics of this cluster are that most of them are males. This is done using “Agglomeration Schedule” mentioned in Appendix. family members. of clusters should be 2 or 3. Therefore through hierarchical clustering an idea of the no. no. Sector employee and students. liking and plan to buy Nano. of family members are 4.

family members are 4 which are suitable for TATA Nano. 1 lakh. TATA Nano should target cluster 3 due to higher intend to purchase. The major characteristics of this cluster are that most of them are males.This cluster includes 55 respondents. This has been due to many reasons like controversy in “Singur”. of family members are 4. Affordability. first people’s car in just Rs. lifestyle. no. 20000.  Research shows that the name “NANO” is very well accepted by the people as most of them believe that “Nano” justifies the product. This is a very good sign for TATA Nano to capitalize on their public relations. comfort. brand name of TATA linked with NANO etc. most of the people are aware about Tata Nano. most of the respondents believe that “NANO” is not their dream car.  The most important factors that affect the purchasing decision of the people to purchase a small car like “NANO” are Design. they somewhat like TATA’s Nano but they have larger orientation towards buying TATA Nano.  Also. Safety. 1 lakh only therefore most of the people believe that it is affordable to them. Avg.  Private Sector employees and students have higher degree of acceptance level for TATA Nano.  It has also been found out through research that most of the people shall recommend TATA’s Nano to other which is a very good sign for TATA Motors. As the car is available in Rs. Conclusion & Research Findings  TATA Nano’s awareness level is very high (92%) i. the age group is between 18-30yrs. Therefore.e. the major profession is Pvt.  “Price” was the most important feature that shall inspire most of the people to purchase “NANO”. power. average monthly income is above Rs.  “Blue” and “Yellow” are the most demanding color that shall be preferred by most of the people for their “NANO”.  It was also observed in the research that majority of people shall not prefer “Nano” over “Bike” as they believe that bike has some additional benefits over “NANO”. accessories status and interior space. all are aware of the TATA’s Nano. 66 . Sector employee and students.

cms  http://www. 2008-01-10.rediff. 2006. IBN.cms  http://www.timesonline. Eric Bellman.reuters. 2004. 2006.indiana.uk/tol/driving/news/article3168303.co. Retrieved on 2008-01-10.2307/2288117  Schutt.in/news_jan_23.edu/~intell/rcattell.autoexpo.html 67 . http://www. SAGE Publications  Mohanty. 10 January 2008.wsj.edu/~rcm/book/factornew.ibnlive.com/money/2008/jan/04tatacar. http://www.unc.  First Look: Ratan Tata unveils Nano". Retrieved June 8. Retrieved on 2008-03-22.html.ece  http://in. & MacCallum R.indiatimes.  http://economictimes.html. "Investigating the Social World: The Process and Practice of Research". "A Method for Comparing Two Hierarchical Clusterings".uk/tol/driving/article3164205.com/article/topNews/idINIndia-35844720081007 2008 Issues  http://www. Die Welt. http://online.com/news/first-look-ratan-tata-unveils-nano/56038-7.  Tata's High-Stakes Bet on Low-Cost Car". The Wall Street Journal. Mrituinjoy (2008-01-10).co. (1993). Retrieved July 22.A Book Manuscript by Tucker. L. B.ece  http://www. Fowlkes & C.com/article/SB119993102461279857.ca/consumer/story/2008/01/10/nano-tata. Russell K. Retrieved on 2008-01-10.de/wirtschaft/article1536886/Tata_Nano__der_indische_Volkswa gen. Rediff News. "Why criticising the 1-Lakh car is wrong". Mallows (September 1983).com/News_by_Industry/Nano_to_rollout_from_P antnagar/articleshow/3523806.asp  http://economictimes. doi:10. L. http://www.html.htm.  "Deutscher Konzern verdient am Tata kräftig mit" (in German). from: http://www.Bibliography & References  Exploratory Factor Analysis .indiatimes. fromhttp://www.htm  Raymond Cattell.com/News/News_By_Industry/Auto/Automobiles /Rahul_Bajaj_says_Mamata_fought_for_farmers_not_politics/articleshow/345625 0.timesonline. 2008.welt. Journal of the American Statistical Association 78 (383): 553–584. Jan 10.cbc.shtml  E.

APPENDIX 1 QUESTIONNAIRE SECTION – I PERSONAL DETAILS Appendix 68 .

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