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This is the specialization project on a study

on new product development for Tata Nano along with a
comparative study between Tata Nano and Maruti 800.
The objective of this study is to gain knowledge about
how Tata brought this new product i.e., Nano up to the
development stage and finally going to launch it on
23rd of March.

The project was assigned by Dipti Mam

(co-coordinator) and Dwani Mam (assistant co-

During the project I researched on how

Tata developed Nano costing Rs 1 lakh and what will be
its effects. This study also includes comparison between
Tata Nano and Maruti800. A survey was also done for
understanding consumer buying pattern and

Thus, this study is based on new

product development in marketing for Tata Nano.


I am thankful to SNDT University and

Gandhi Mahila College and specially BMS department
who provided me with the opportunity for carrying out
the study.

I would also like to acknowledge my

sincere thanks to our co-ordinator Dipti Mam. Under
their valuable guidance, constant interest and
encouragement, who have devoted her ever-precious
time from their busy schedule and helped me in
completing the project. Her co-operation was not only
useful for this project but will be a constant source of
inspiration for me in the future.

I express gratitude to various faculty

members especially Sandeep Sir for his valuable

guidance which was a good learning experience in order
to make my efforts successful.

Special, continual assistance while

collecting the data was provided by the respondents. I
wish to acknowledge my special thanks to them for
their help and cooperation in order to complete this

I am also thankful to those who have

helped me intellectually in preparation of this project
directly or indirectly.

I am deeply indebted to the various

sources of information from relevant sites from internet
and books which helped me a lot in my study and
helped me to learn a lot.

Table of contents:
No. subject Pg. No

1 Objective of research 5

2 Methodology of research 6

Introduction to the subject –new product

3 development 7

4 Introduction to Tata Nano 19

5 Tata Nano and new product development 25

6 Some myths about Nano 44

Comparison between Nano and Maruti

7 800 49

8 Data collection method 56

9 Analysis of data collection 60

10 Various charts 60

11 Some feedback about Nano 67

12 Conclusion 70

Research objectives

o To study about how a new product- Tata Nano was

developed based on marketing theory of “new
product development.”

o To study about what made possible for Tata to

develop and produce a car for just Rs. One lakh.

o To study the objectives and target customers of

Tata’s one lakh car

o To study and compare between Tata Nano and

Maruti 800

o To study on customers buying behavior and

preferences and views about Tata Nano and Maruti
800 by various methods of data collection.


o Research methodology deals with the various

methods of research. The purpose of the research
methodology is to describe the research procedure
used in the research.

o Research methodology helps in carrying out the

project report in by analyzing the various research
findings collected through the data collection

Introduction To New Product

Meaning Of Product:
E.g.:- milk, computer, shoes, service after
sales, railway services etc. a product can be divided into
two categories

o Tangible goods

o Intangible goods

Tangible products are known as goods that

can be touched, felt and seen. E.g.:- computer, mobile
phone etc

Intangible products are known as services

that cannot be touched and seen as the customer can feel
and experience only after utilizing it. E.g.:- service after

New Product Development:

A product can be considered new under the

following situations:-

 New-to-the-world products

 New product lines

 Additions to existing product lines

 Improvements and revisions of existing


 Repositioning

 Cost reductions

Stages Of New Product Development

Before the introduction of a product into

the market, it goes through several stages of development.
These stages are known as stages of new product
development. It includes the following:

Idea Generation:

Companies seek new ideas to enhance the

performance of the existing products and to innovate new
ideas. This stage is called idea generation stage. There are
many sources for idea generation. It may be from
customers, dealers etc.

Employees throughout the company can

also be a source of idea. Toyota claims that its employees
submit two million ideas annually over 85% of which are

Companies also find good ideas by
researching competitor’s products and services. They can
find out what the customers like or dislike about their
competitor’s products. Ideas can also come from investors.
External research, surveys industrial publications research
and development etc.

But the main source of idea generation is

the customers by their grievances and complains and
feedback. However, although ideas can flow from many
sources, it is not feasible to implement all the ideas
generated due to lack of time and capital.

Idea Screening

The main purpose of idea generation is to

collect a larger number of ideas. However, not all ideas can
be commercially viable. Therefore, the companies filter the
less viable ideas with the help of systematic process.
Companies can use various parameters to screen the ideas
such as market size, technical capabilities, potential
competition etc.

Addressing the following issues will also
help the companies to analysis the attractiveness of ideas.

 Whether the product idea match the

existing products of the company.

 The degree to which the new product can

cannibalize the sale of the existing

 Company’s ability to produce and market

the product.

 Buying behavior and the probable

changes in the environment.

While screening the ideas, an

organization may commit two types or errors.

Drop error where the firm rejects a very good idea.

Cro error where a company selects a poor idea.

Concept Testing And Development:

All ideas that survive in the process of

screening will be studied in details. They will be developed
into mature products. At this stage, the idea is submitted
for the external evaluation to get a feedback from the
market. It helps a firm are organization to collect important
information like customers initial reactions towards the
product development. During this stage, new product idea
is described in the form of one or more benefit that is then
presented to a sample of potential customers for their

Marketing Strategy:

Following a successful concept test, the new

product manager will develop a preliminary strategy plan

for introducing new product in the market. The plan
consists of three parts.

 The first part describes the target market size,

structure and behavior for the first few years.

 The second part outlines the planned price

distribution strategy and marketing budget for the 1st

 The third part of marketing strategy plan describes the

long run sales and profit goals and the marketing mix
strategy over time.

Business Analyses.

After management develops the product

concept and market strategy, it can evaluate the business
attractiveness. Business analyses are the first in-depth
financial evaluation of new product to be developed. Here
management needs to prepare sales cost and profit
projections to determine whether they satisfy company
objectives. If they do, then concept can move to the
development stage. SOWT analysis will be conducted at

this stage by the organization. It also includes the

Total sales estimation:-

These are the sum of estimated first- time

sales, replacement sales and repeat sales. Its method
depends upon whether the product is one time purchase(an
engagement ring), an infrequently purchased products like
toaster, auto mobile etc. or a frequently purchased
products like consumer and industrial non durables.

Estimation costs and profits.

The R&D, manufacturing, marketing and

financial departments estimates the costs. The profitability
of the new product is estimated through various financial
tools. The simplest technique is the breakeven analysis in
which the management estimates how many units of the
product the company would have to sell to break even with
the given price and cost structure. If the management
believes that sales could easily reach the break even

number, it is likely to move the project into development

Product Development

In this stage, detailed technical analysis

is conducted to know whether the product produced at
costs is low enough to make the final price attractive to the

Here a working model or a prototype is

developed to disclose all tangible and intangible attributes
of the product. A product protocol is prepared which is a
detailed downiest containing the important attributes that
are expected in the product. Once the protocol has been
developed, it is handed over to the research the
development department to develop the prototype of the

Test Marketing:

The test marketing is the stage where the

product is introduced in a few selected cities. During this
stage, the company has to fate the following expense:

 High advertisement

 High manufacturing cost.

 High distribution cost etc.

For testing the product, marketer needs

to make the decision on the following issues.

 The no. of cities in which the product is to be tested.

 Geographic location of the cities.

 Time to carry ort test marketing

Through this exercise, company can

know the customers response, feedback, suggestions,

complaints and any other changes required to be done for
product modification.

After successfully laughing the product

in selected cities the company launches the new product in
all other cities.

There are certain methods of product testing.

Alpha Testing

In this method, a group of target audience is

selected from the employees of the company.

Beta Testing:

It is carried out at the customer’s site.

Generally, it is applicable for industrial products where the
customization takes place.

Gamma Testing:

It is carried out on a long term basis where

the customers uses the product extensively and gives
response after a long period of time. Say six months.


The results of the test marketing help

marketers to decide the changes that are needed in the
marketing mix before entering into the market. It also helps
the marketer to decide the amount of production
distribution strategy, selling efforts and other issue like
providing guarantees, service after sales etc. the product
enters the market during the commercialization stage.

Introduction To Tata Motors:
o Tata Motors was established in 1945, when the
company began making trains.

o It has its manufacturing base in Jamshedpur,

Lucknow, Pune and soon one more plant is going
to established at Singur, West Bengal.

o Product Manufactured - Passenger Cars and

commercial vehicle

o Installed Capacity - 350,000-400,000 vehicles a


o Investment - Rs 2,500 crore (Rs 25 billion)

o Turnover - $21.9 billion (Rs 967,229 million)

o Employees - 2,46,000/22001

o Tata Motors had created the wealth Rs. 320
billion during 2001-2006 and stood among top
10 wealth creators in India.

Tata Nano - ONE LAKH CAR

PROJECT “People’s Car”

“A promise is a promise,” said Rattan Tata,

Chairman, Tata Motors, on 10th January, 2008, when
the Nano was first displayed at the Auto Show in Delhi.
The Nano project didn’t grab the attention of only
Indians; the entire world had their eyes glued to the
world’s cheapest car.
A truly People’s Car, this time is from India.
Though the dealer price is Rs. 1 lakh, the price on road,
when it will be launched, will reach around Rs. 1,25,00
but it will be still more affordable and will be more eco-
friendly than most other cars giving a mileage of around
23km/liters. The price of the car is such that a lot of rich

and HNIs, if interested, can buy the car just by a single
swipe of their credit cards.
Providing a car worth rupees one lakh car
was the dream of the chairman of Tata motors Mr. Rattan
Tata. And with high qualified IT skills people he has
shown the Indian talents to whole the world.

 Idea conceived by - Rattan


 Cost of development - 1700 crores

 Manufacturing cost
(excluding dealer margin and taxes)- Rs 65,000
per unit

 Development of Design - India

 Time for designing the car - 4 years

 Team - A team of 150 engineers , everyone

below age 28

 Biggest hurdle - To make a car cheap car

without Compromising design

May western countries as well as many foreign
countries have accepted Indian IT skills.

Details Of Nano
Engine: 624 cc / 33 bhp
4 door, 5 seater (and yes 4 Wheeled too)
Rear Engine
Weight: 600 kgs
Mileage - 22-23 km/liter
Deluxe (with AC)
Diesel Variant
Exports outside India or assembly plants outside

8% less in length (bumper to bumper) with respect to
Maruti 800 21% more in inner space with respect to
Maruti 800
Front side looks more like Matiz (or Spark as we now
call it)Back side looks more like India with those long
tail lights.
People often criticize something that is making waves
everywhere. This has also been the case with Tata
Nano. Competitors, safety regulators,
environmentalists and most others conceived the
problems that India will face, when such a car is
available, much before the actual launch of the car.

This will result into:


SOWT Analysis

 STRENGTH  Large market for

 Brand name
TATA  Awareness in

the market
 Cost price low
 First car in low
 Fuel efficient
 Safe
 Can hit in global


 Low power

 Not a status symbol

 Delay in manufacturing

 Limited features


 Company rival

 Not sure to hit in rural and semi-urban areas

New Product Development And

As seen before, A product can be considered

new under the following situations:-

 New-to-the-world products

 New product lines

 Additions to existing product lines

 Improvements and revisions of existing


 Repositioning

 Cost reductions

As far as Nano is concerned, it falls into new

to the world products in the context that it has made a
history for the cheapest car ever made without
compromising on quality. I.e. best way value analysis.
It can also be considered as new product in
the since of cost reduction as it’s the first time in the
history that such a cheap car is produced.

The story of the Nano is not confined to its

impact on the auto industry. It's a tale that illuminates the
India of today—an eager, ambitious nation with a
combination of engineering talent, a desire for low costs
and value, and the hunger of young managers looking to
break from a hidebound corporate environment. Indeed,
the team that worked on the Nano—on average aged
between 25 and 30—has helped to flatten Tata Motors'
stodgy, multilayered management structure, which has
resulted in an unexpected side-benefit called
"organizational innovation".
Idea Generation And Nano
A dream is born –

Says, “I observed families riding on two-

wheelers -- the father driving the scooter, his young kid
standing in front of him, his wife seated behind him
holding a little baby. Add to that the slippery roads & Night
time too. It is downright dangerous. It led me to wonder
whether one could conceive of a safe, affordable, all-
weather form of transport for such a family.”

So when Tata Motors needed someone to take

charge of the company's most ambitious plan yet to build
the world's cheapest car ever Ravi Kant, who by then had
become the company's managing director, again turned to
Wagh. Wagh remembers what he learned marketing the
little truck. "People want to move from two-wheelers to
four-wheelers," he says. "Today they can't afford it."

More and more can, but Indian car buyers

today represent a tiny slice of a potentially giant market
India has just seven cars per 1,000 people. India's auto
industry has grown an average of 12% for the past decade,
but just 1.3 million passenger vehicles were sold in India in
the fiscal year ending March 2006. That means a billion
Indians buy about the same number of cars in a year as
300 million Americans buy in a month.

If four wheels cost as little as two wheels, that

could change fast. About 7 million scooters and
motorcycles were sold in India last year, typically for prices
between 30,000 rupees and 70,000 rupees, about $675 to
$1,600. Tata is targeting a price of 100,000 rupees one
lakh, in Indian terms of measurement or about $2,500 at
current exchange rates, for its small car. That sounds
impossibly cheap in the West but remains three times
higher than India's annual per capita income. The average
pay for factory workers at Tata Motors is just $5,500 a

Idea screening
The next step was the screening of idea. How
is this dream possible? What should they make?

 A scooter with two extra wheels at the back for better


 An Auto-rickshaw with four wheels?

 A three wheeled car like a closed auto- rickshaw??

 A four wheeled car made of Engineering Plastics?

 A Four wheeled rural car?

 Rolled up Plastic curtains in place of windows?

 Openings like Auto rickshaws from the side

 A four wheeled open car with safety side bars?

But the market wanted a car and if they build a people’s
car it should be a car and not something that people would
say,“ Ah! That’s just a scooter with four wheels or an auto-
rickshaw with four wheels & not really a Car.”

Trying to build a car cheap enough for

motorcycle buyers seems to make sense now but seemed
crazy several years ago when Rattan Tata, longtime
chairman of Tata Motors and scion of the nation's giant
Tata Group conglomerate, first mentioned his dream of
building a one-lakh car in 2003. "They are still saying it
can't be done," he says, insisting that it can and will.
"Everybody is talking of small cars as $5,000 or $7,000.
After we get done with it, there will hopefully be a new
definition of low-cost."
Concept Testing And Developing

Before starting the project, Wagh did

something no one at Tata Motors ever had: He talked to
customers. The three-wheeler men inevitably insisted on a
cheap, dependable truck that could go from village to
market carrying, say, a ton of onions or potatoes, one
night, as sunset approached, Wagh stuck with one
rickshaw driver. He says, "I kept asking the question. Why?
Why? Why do you want a four-wheeler?" Wagh
remembered. Finally, he got the real answer. It turned out
it wasn't really a problem of transportation of vegetables “If
I had a four-wheeler, I would have better marriage
prospects in my village," the young man said. Drivers of
three-wheelers are looked down upon in India. Wagh
realized that four wheels had emotional, not just practical,

Thus the new product was now to be developed.

But what type of product?

The car to cost Rs. 1 lakh on road.

 The car should be built on a different platform than

conventional ones.

 It must be meeting all the safety and regulatory

 It has to be built on a scale which shall be more than
double the earlier launches of similar products and the
ramp up must be smooth.

 The car has to be designed so that it can be exported

to other countries as the domestic demand may not
materialize as per projections.

 The car must be a beacon for the Indian Automobile

industry and prove to the world that we are capable to
take any challenge and come out worthy winners.

That quest to build the world's cheapest car

hasn't ended. The Nano should be available this fall, but
the mission began back in 2003, when Rattan Tata,
chairman of Tata Motors and the $50 billion Tata
conglomerate, set a challenge to build a "people's car". Tata
gave an engineering team, led by 32-year-old star engineer
Garish Wagh, three requirements for the new vehicle: It
should be low-cost, adhere to regulatory requirements, and
achieve performance targets such as fuel efficiency and
acceleration capacity.

The design team initially came up with a

vehicle which had bars instead of doors and plastic flaps to
keep out the monsoon rains. It was closer to a quadricycle
than a car, and the first prototype, even a bigger engine,
which boosted the power by nearly 20 per cent, was still
dismal. "It was an embarrassment," says Wagh.

But failure didn’t stop them

they quickly realized it was necessary to bring everyone on
board, "else it leads to last-minute heartache and delays".
Every morning, he would spend an hour or two on the floor
of the Pune factory, insisting that everyone involved—
designers, manufacturing teams, and vendor development
people—be there to accelerate decision-making and

Over time, Wagh's team grew to comprise

some 500 engineers, an impractically large group to gather
on a daily basis. So instead, a core team of five engineers
gathered every day at three pm to discuss the latest
developments. Each engineer represented a different part of
the car: engine and transmission, body, vehicle integration,
safety and regulation, and industrial design.

The body had to be changed because Rattan

Tata, over six feet tall himself, wanted it to be easy for tall
people to get in and out of the car. "Imagine the plight of
the body designer—he went through hundreds of iterations,
then at the last minute the car length was increased by 100
millimeters!" Wagh says. The attention to detail paid off:
When the car rolled onto the dais at the Auto Show in New
Delhi in January, and Rattan Tata stepped out of the
driver's seat with ease, it made an immediate impact.

What shook the automobile world most was

the fact that the designers seem to have done the
impossible: The sleek, sophisticated Nano doesn't look
flimsy or inexpensive. If it had been an upgraded scooter on
four wheels, Tata still would have been applauded for
making a family of four safer on Indian roads. The Nano,
however, affords both safety and status. "The innovation
wasn't in technology; it was in a mindset change".

Business Analysis


Since the car had to be built within a cost of

Rs. 1 Lac, no conventional design would work as the costs
shall be higher and so the entire car has to be redesigned.
What makes Nano so less expensive can be
well understood from the following diagram

The design has to question the need of each

and every component from the point of view of its necessity
of existence and also the minimum requirements of its
functionality. Value Engineering concepts have to be
deployed to finalize the minimum requirements.

Disruptive Technology:
Is a Technology that brings radical change by
introducing new ways of doing things usually at a
Technology that is:

 Significantly cheaper than existing


 Is much higher performing?

 Has greater functionality and

 Is more convenient to Use.

 Brings to market a totally different Value

proposition than the one available and
can change the Paradigm about a

The Guiding factor was that the cost has to

be minimized for each component yet maintaining its basic

The Alternatives are:

 Reduce Consumption of Material being

 Alternate Suppliers to get same material

at fewer prices.

 Use alternate materials.

 Eliminate use of Material.

 Eliminate a process Or a Combination of

the above.

The design was outsourced to Italy's Institute

of Development in Automotive Engineering, but Tata
himself ordered changes along the way. Most recently he
vetoed the design of the windshield wipers. His solution: a
single wiper instead of two, giving the car a cleaner look.

The target was very clearly defined that

within the given cost structure of 1 Lac all the components
have to be allocated a maximum price and the same had to
be achieved using the available alternatives.

The Guiding factor was that the tax

structure, on materials and manufacturing, must support
the final cost of Rs. 1 Lac

The Decisions were:

 Establish factory in a tax free zone.

 Get the tax advantages on infrastructure


 Get the suppliers to establish base near

the factory.

 Get special concessions from State Govt.

 In short select a manufacturing location

where all the advantages could be

In short select a manufacturing location

where all the advantages could be achieved.
Total sales estimation

Now the question was, “how much to


 It was estimated that the demand for the

people’s car shall be at least twice the
demand for Maruti 800, the lowest end
car. Initial projections were at about 500
K cars per year.

 The basic reason was the conviction that

the target price shall redefine the 4 -
wheeler segment.

 The price decision of Rs 1 lakh is

definitely going to make a lot many
people transit to 4-wheeler fold and that
shall explode the demand.

 F only 10% customers of 9 Million two

wheeler market transit to 4-wheelers it
shall amount to 50% of the passenger
car market share.
 It was decided to set up plants with 5
lacs cars per annum capacity and ramp
the same up in stages, in line with
increase in market demand.

The initial response to the Nano has been

overwhelming and the tiny, Noddy-land car is expected to
help the company cross several milestones. With revenues
at Rs 1,29,994 crore for the financial year 2006-7, and
group companies enjoying a market capitalization of Rs
2,51,487 crore as on January 10, 2008, the Tata Group is
on a strong footing, contributing more than 3 per cent to
India's GDP. Nano, being the world's cheapest car, has
made international players sit up in amazement and the
company has received proposals from some African, Latin
American and Southeast Asian countries to manufacture
the car there.
Product Development
And finally the product was developed with the
following features.

 Engine Capacity Bosch 624 c.c. twin cylinder

 Low capacity, Lighter, sufficient with better Power Rear

Engine to reduce the transmission length using a
balancer shaft.

 4 Speed Manual Gear Box

 All Aluminum Engine

 Higher thermal conductivity than cast iron, Lighter

and so better mileage

 Engine Management System by Bosch

 Superb control over emission and smooth acceleration.

 Dimensions L: 3.1m, W: 1.5m, H: 1.6m

 Less length but more inner cabin space due to height.
Comfortable leg room.

 Independent Front & Rear Suspension McPherson

Strut in Front & Coil spring & trailing arm in rear.

 Better ride than Maruti 800.

 Single piece ribbed steel body with safety features such

as crumple zones, intrusion resistant doors, seat belts,
strong seats & anchorages.

 Safety requirements are adequately met.

 Single Wiper in place of two.

 Cost effective yet functionality is met

 Tube less Tires

 Weight reduced by 2 Kg. Cost reductions 200 Rs. And

in line with modern vehicles

 Instrument console in the centre

 Elegant to look at and can be used both in Left Hand &

Right hand version.
 The list goes on and on.

 The Final verdict


Test Marketing And Commercialization

Nano is soon going to launch by the end of April. It will

be commercialized in whole of India. It is mostly targeted to
the middle class and lower middle class people. The effects
of Nano and its commercialization will be soon known after
it comes into the market.

Some myths about Nano

When Nano was introduced, it
surprised everyone. It had so many features but the cost
was as low as Rs. 1 lakh. This was really amazing. Due to
this, many competitors, governments and others opposed
Nano. Moreover, it’s not a new thing that whenever a new
concept is developed, people oppose. They find more
limitations then seeing the benefits. Following are some
myths about Nano. But these are then proved to be wrong.

Myth no 1

Nano is an unsafe car

 The car has an all steel body.

 It meets the mandatory Frontal Impact requirements.

 It also meets the Side Impact requirements although

they are not mandatory in India.

Myth no 2

Nano will greatly increase the Pollution Level

 The car is Bharat IV and Euro IV compliant although

these norms, which are stricter than the present
Bharat III norms, are yet to be introduced.
 It has lower carbon footprint, 20 mg / Km of Carbon
Dioxide emission as compared to 45mg / Km, emitted
by most of the two wheelers.
 Its Multi Port Fuel Injection system is controlled by an
intelligent Bosch Engine Management system which
controls the combustion cycle precisely to ensure
compliance to all emission norms.

Myth no 3

Nano will struggle to perform

 Although the car has 33 bops as the maximum
horsepower it has a low kerb weight of 550 Kg and so
has a higher power-to – weight ratio when compared to
many existing cars running on Indian roads.

 The car has a matching acceleration to Maruti 800 and

also a good top speed. Although the manufacturers
have estimated 90 Kms as the maximum speed the car
can go up to 105 Kms per hour top speed.

Myth no 4

Nano has very little leg room

 Although the car is 8% smaller than Maruti 800 it has

lot of extra leg room at front as there is no engine
compartment. This also leaves sufficient knee room at
the rear.

 The car has a tall boy type design so there is lot of

head space and also enough Shoulder room.
 The mono volume design and the wheels having been
put at the corners have freed up lot of in- cabin space
and although the car may be registered as a four-
setter, three slim adults can sit comfortably at the

Myth no 5

Cheap means Uncomfortable

 More comfortable than some of the cars selling at even

twice the price. Leaves sufficient knee room at the

 Easy to get in & out of the car because of perfect seat

height from the ground.

 Suspension systems are good and the trailing arms

with coil springs are not found in cheap cars. Rear.

Myth no 6

It’s very difficult for a rear - engine car to work.

 Rear engines work in many cheap as well as expensive

 Auto-rickshaws at one end and Formula One cars on
the other extreme all use rear engines.

 Maruti Omni too has a rear engine, under the seat and
no one has been burnt due to that.

 Cooling is easier in Nano as compared to some vans

and there are the air ducts on either side behind the
edge of the doors, which allow air to seep in for both
cooling & for intake.

Myth no 7

There is a shortage of storage space.

 There is some storage space although not much.

 The rear seat with parcel shelf folds to allow

accommodating a large suitcase.

 Small articles can be placed under the bonnet also.

Myth no 8

Cutting Corners is evident everywhere

 Cost cutting is done by smart designing rather than

taking out the essentials.
 One wiper has been taken out but the functionality is
intact. Wind shield washer fluid jets are mounted on
the wiper itself rather than the body.

 Wheels are held by three bolts instead of four.

 On the contrary, MRF tubeless tyres and all

Alumininium engine, have been used, which are more
expensive than conventional ones.



As we know the price of Nano car is much

affordable for middle class people. This car can be easily
affordable by middle class people. In the Indian market it
will face only by one competitor that is Maruti – 800, which
produced by Maruti udyog.

The real question arise who will have the last

laugh Tata or Maruti 800?

The answer is neither Tata nor Maruti 800

but they are the buyers who will have the last laugh
Can Nano beat the popularity of Maruti 800. All the things
depend on their marketing strategy that how they will
attract to Indian middle class customers.

Never mind the fact that what was touted as

a Rs.100,000 car will cost at least a fifth more and that's
for the standard non-air conditioned version.
Jagdish Khattar, a former head of Maruti 800
manufacturer Maruti Udyog Ltd, says it's too early to say
whether the Nano will overtake the original.

"It's a good product but it's still too early to

say whether it will overtake the 800 because it caters to a
totally new market segment," he said while watching a live
telecast of Tata's press conference after unveiling of the
Nano. But clearly, at least one other manufacturer was

Whether or not the Nano will overtake the

Maruti 800, one thing is for sure: the current Auto Expo
will be remembered for Tata's people's car and for that
product alone. It is the Nano that has captured the hearts
and minds of a majority of the spectators.

Price of Maruti in major city of India – 800 (a/c LPG)

(Figures in rupees)

Mumbai 245648
Delhi 228858
Bangalore 231407
Kolkata 236826
Lucknow 232542




 The dealer price of Maruti 800 varies from city to city.

The dealer price in Delhi is 1.97 laths and the road
price is approximately 2.28 laky Indian rupees.

 The dealer price of Nano is just 1.00 lakhs rupees and

the road price is only 1.26 lakhs rupees.

So here we can put the equation 2 * Nano = 1*

Maruti – 800

 Maruti 800: – 800 cc

 Tata Nano :623 cc (better fuel than Maruti 800)


 Maruti 800 – petrol/LPG

 Nano : petrol (diesel version will be later)


 Maruti 800: 4+1 person

 Nano: 4+1 person


 Maruti800 : 28 Lt (petrol), 19.2 (LPG)

 Nano: 30 Lt.

 Maruti 800 – more than 690 kg (gross weight is 1000

 Nano – more than 600 kg


 Maruti 800 : 120 km/hr

 Nano : 90 km /hr


Maruti 800 – middle class people

Nano: lower and middle class people.

Maruti 800: city 13.6 and highway 17.6 km
Nano: city 22 km and highway 26 km
Maruti 800 Tata Nano
Length 3.335 meters 3.1 meters
(131.3 inch
Width 1.440 meters 1.5 meters
(56.7 inch)
Height (55.3 inches) 1.6 meters

• Maruti800: Front Disk, Rear Drum

• Nano: Front Disk, Rear Drum


Maruti 800

Tata Nano:
The Nano are not much taller and broader
as compared to Maruti – 800 but it has 21 percent
larger spaces in side but 8 percent short than Maruti.
Disadvantages of NANO vs. Maruti 800
1. LPG/CNG version is doubtful.
2. Top Speed will be laser than 800.
3. Space for Language is less.

Data Collection Methods

The success of any project or market survey
depends heavily on the data collection and analysis. It is
necessary that the data collected is a reliable data in order
to achieve the research objective.

For research regarding the views of people

about Tata Nano and its comparison between Tata Nano
and Maruti 800 two types of data collection methods were

• Primary Data

• Secondary Data
Primary data is the data, which are fresh and
collected for the first time, and are original in character.
There are various Primary Data Collection techniques,
which have helped in data gathering. This was collected
through questioner.

Questionnaires are a popular means of

collecting data, but are difficult to design and often require
many rewrites before an acceptable questionnaire is


 Can be posted, e-mailed or faxed.

 Wide geographic coverage.

 Relatively cheap.

 No prior arrangements are needed.

 Avoids embarrassment on the part of the


 Respondent can consider responses.

 No interviewer bias.


 Design problems.

 Questions have to be relatively simple.

 Time delay whilst waiting for responses

to be returned.

 Several reminders may be required.

 Assumes no literacy problems.

 No control over who completes it.

 Not possible to give assistance if


 Problems with incomplete


Points kept in mind while preparing the

 Liberal spacing

 Length of the questioner is kept normal

 Logical Order

 Question are short, simple and to the

point; all unnecessary words are

 Close ended questions are asked so that

its easy for the respondent to fill the
questioner and also easy to analysis

 Sample population was selected on the

basis of random sampling method.


Secondary data are those data, which have

been already collected or published for the purpose other
than specific research need at hand. This data is simply
used up by the researcher for his purpose of collected data
and it’s used for the same purpose. The secondary data
sources here in this project are:



Various Results Of Analysis In The

Form Of Charts
% of people who are aware of tata


the % of people who are aware of the tata’s

new product – Nano car is shown with the help of pie chart.

o Here, blue color indicates that people are aware of tata


o And red color indicates the % of people who are not

aware of tata Nano.

While analyzing the chart, we can know that

only 3% of the total sample population is not aware about
tata Nano. This shows the great effect of media, newspaper
and launching of this product.
Preferences Of Different Age Group Regarding
Buying Of Nano.
this chart shows the preference of different
age group to buy tata nano when it is launched.

Here on x- axis, no of respondents is given.

And on y – axis the age group is given.

o Blue triangle indicates willingness to purchase tata


o Red triangle indicates that the respondent is not

willing to pruchase it

o And green indicates that the respondent is not sure.

While analysing this chart, we can see that

the young generation is egar to buy the product. While due
to some misunderstandings about tata nano, the older
generation doesn’t desire to buy it or are not sure about it.

Preferences Of The Respondents Regarding

Buying Of Motor Car, Maruti 800 And Tata
this chart shows the preference of the
respondent. The question asked in the questioner was, “if
you were to buy one of the following, which would you
prefer.” the options given were:

motor bike Maruti 800 tata Nano

by having a glance at the chart, we can see

that majority went for tata Nano. Maruti 800 got very less
votes. This shows a tough time for Maruti in future.

Views about success of Nano

the question asked here was,”do you think
Nano will be successful” the options given were

yes no not sure.

It’s very interesting to note here that none of

the respondent said that Nano won’t be successful. As
shown in the chart, the portion of purple color which shows
failure is not there at all.

But again every body does not believe in its

success. As seen form the chart, 50% of the respondent
has a doubt about success of Nano.

Nano- A People’s Car !!!

in this chart, number of respondents is given
on the y axis and some features are given on x- axis.

The question asked here is, “What is it that

makes Nano a people’s car?”

By analyzing the chart, we can say that

people consider the cost factor the most for Nano followed
by the innovation. Even looks has got quite positive reply.
Nano is a product that is developed perfectly at minimum
cost without sacrificing the quality.
Some Feedbacks Based On

Positive Response

 I have one more angle to look at Nano. I think it is

worlds most hyped about gadget after the iPhone. Did I
just say “gadget”. Well, yes Tata Nano is not just a car;
one can also look at it like an expensive gadget which
also gives us mobility. One of the very few cute looking
gadgets that all us geeks will love, who would generally
be interested in stuff that is sleek and powerful. I am
also hopeful that Tata will launch FCV and alternative
fuel cars soon.

 I definitely would like to buy the car. Who would not

want a good car for just 100000 Rs?

 It’s just cool. One should definitely buy it.

 Cheap As it is, but very smart and sexy. I would

defiantly buy it.
 Congratulations to Mr. Rattan Tata. He did a real good

Negative Response

 It is impossible to build a car at such a price. No one

has been able to do it so far. It is just not possible.

 It will be more like a scooter with a roof. I am sure no

one can make the car for the cost of two bikes.

 This car is another auto rickshaw. It will add a lot to

the traffic on road.

 It shall be a half car with no roof. I doubt if it will be

able to go up the flyovers.

 It may be an upgraded Auto-rickshaw with plastic

body. It shall be a very unsafe car as the very idea of 1
Lac car is too farfetched to be true.

 It shall never meet the emission norms. We shall choke

on the poisonous emissions from this car.
The disbelief kept piling up and up and was
further compounded by the competitors adding their own
mite to the speculations.

Mixed Response

 IT HAS NOT BEEN DONE EVER. Even the nearest car

is double the cost. Let us see what Mr. Tata can do to
maintain the price line.

 I am not very convinced but would definitely go for it if

it is safe.

 I hope I can take my family of 4 in this car. I wish

Tata's make this dream a reality.
 I know the talk is that it is a myth. However miracles
do happen. Let us wait and watch.

The reaction was a mixed one. People wished

it to be true but were very cautious about expressing
their optimism.



After the study of various aspects I found that

Nano Car Is Definitely Not For:-

 Someone looking for better performance

 Someone who is looking to impress

 Someone who want to speed trial on Sunday

 Someone who is looking for long drives.

But Nano Car Is Defiantly For –

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

much price.

 A students who want to go college, tuition instead of

bike etc.

 Someone who depends on second hand car.

 For a house wife who can buy a car with her own

 Someone who depends on scooter.

So Nano is not a basically a luxury cars but it

can fulfilled the all capacity for middle class people.

Impact Of Tata Nano On Life Of Common Man

 In India every one can afford a Nano, just as we buy
any electronic appliances for a home uses.

 Decrease in price of second hand car.

 High traffic on roads due to sale of exceeds car on


 Increase in loan on car installments.

And finally Nano is definitely better than

Maruti 800.

tata has succeeded in value engineering of

the product and its great success for tata’s. It’s
something on which India can feel proud of. Nano has
been developed effectively.