1.

CHAPTER ONE: GENERAL INTRODUCTION

1.1 AIM
The aim of this research “Customer Satisfaction of Tata Nano” is to know satisfaction level
of Tata Nano user. After literature reviews and analyzing of data gathered make a
recommendation for addressing the problem faced by Tata Nano user in Panipat area.

1.2 OBJECTIVE
The objective of this assignment is to conduct a research on some of the problem that is faced
by Tata Nano customer. The main objective of the study to accomplish our aim aare given
below.
I. To build up a theoretical and conceptual framework for analyzing the Tata Nano user
customer satisfaction level to enhancement in modification in all the area of Nano.
II. To create a questionnaire from the framework to extract data from Managers and user
of Tata Nano.

1.3 GENERAL INTRODUCTION

Tata Nano, pet project of the chairman of the Tata Group Mr. Ratan Tata was a car which
was expected to change the face of automobile sector in India. In the highly competitive
small-car market of India, Tata Nano promised to set the bar so high that it would become
extremely difficult for the competitors to match. The dream of owning a car for as little as
Rupees 1 lakh (Rs.100, 000 – roughly USD2500) was too tempting for millions of Indians
who cannot afford even a small car. The kind of extensive media coverage Tata Nano
received right from the day it was announced through the entire period until the first units
were handed over to the owners was something that its competitors dreamed of. However,
after two years of launch, the Tata Nano manufacturing plant at Sanand in Gujrat, India is
running at around 20% utilization.
Tata Nano” one of the India's biggest car company recently their long awaited one lakh rupee
in India with the name of “Tata Nano” with the launch of Tata Nano’ it became the world’s
cheapest car. The critics initially derided the, concept mainly on the basis of the price target,
more so as oil & steel prices rocketed. But Ratan Tata is still kept his promises & delivered
the Nano almost his target price, forcing global car makers to make note. In fact many top
automobile giant are now scarring for the own version to meet growing environment & cost
concern. The People’s Car, designed with a family in mind, has a roomy passenger
compartment with generous leg space and head room. It can comfortably sit four persons.
Four doors with high seating position make ingress and egress easy.

1.4 INTRODUCTION TO THE COMPANY CHOSEN

Idea behind manufacture of TATA Nano: - The idea for making the Tata Nano car is come
in the mind of Rattan Tata when he saw a family. It is like a short story. Once upon a time the
chairman of Tata motors Mr. Rattan Tata was going somewhere in market then suddenly he
saw scooter on which a husband, wife and two child were sited. We know on a scooter four
people will face problem in sitting. And unfortunately that day was a rainy day so those
people were facing so many problem on scooter. Then rattan Tata thought that I will launch a
car which is affordable for a middle class family too.
Unlike others low cost Indian cars, this is going to have a variomatic gear system. Instead of
manual gear box in conventional cars it is coming up as gear less or rather with an automatic
gear transmission. This helps to improve the efficiency and mileage by magnifying the torque
output. The People’s Car has a rear-wheel drive, all aluminium, two cylinder, 623 cc, 33 PS,
multi point fuel injection petrol engine. Balance shaft By adhering to the fact that less weight
requires less power, the 1 lakh car is made of light weighing steel. This has made the Tatas
come up with a cheap alternative without compromising with on safety and performance.
Controversies also involved on Tata’s planned manufacturing unit for the car in Singur, West
Bengal, where the state government of West Bengal has allocated 997 acres (4.03 km2) to
Tata Motors. The construction of car factory on that tract of land will require fertile
agricultural land and the expropriation and eviction of ca. 15000 peasants and agricultural
workers.

Tata Nano - world's cheapest new car is unveiled in India Tata Motors, One of the India's
Biggest Car Companies recently launched their long awaited one lakh rupee car in India with
the name "Tata Nano". With the launch of Tata Nano, it became the world's cheapest car. The
critics initially derided the concept mainly on the basis of the price target, more so as oil and
steel prices rocketed. But Ratan Tata still kept his promise and delivered the Nano almost at
his target price, forcing global car makers to take note. In fact, many top automobile giants
are now scurrying for their own versions to meet growing environmental and cost concerns he
People’s Car, designed with a family in mind, has a roomy passenger compartment with
generous leg space and head room. It can comfortably seat four persons. Four doors with high
seating position make people easy to enter and egress easy. The People’s Car, designed with
family in mind, has a roomy passenger compartment with generous leg space and head room.
It can comfortably seat four persons. Four doors with high seating position make people easy
to enter and egress easy. Design unlike other low cost Indian cars, this one is going to have a
variomatic gear system. Instead of manual gear box in conventional cars it is coming up as
gear less or rather with an automatic gear transmission. This helps to improve the efficiency
& mileage by magnifying the torque output. :
Unlike other low cost Indian cars, this one is going to have a variomatic gear system. Instead
of manual gear box in conventional cars it is coming up as gear less or rather with an
automatic gear transmission. This helps to improve the efficiency & mileage by magnifying
the torque output.
 2. CHAPTER TWO
DISCUSSION OF THE PROBLEMS IDENTIFIED AND THE RELATED
ISSUES
2.1 PROBLEM FACING OF TATA NANO.
1. Cost and Quality
2. Road
3. Catching fire
4. Service related problem
5. Problem with the electricity

2.1.1 Cost and quality

Nano at cheap cost Tata reduced the use of quality materials which affected the performance
of the car engine side, Nano had issues with Turbo alternator belt, Condenser problem, Gear
shift issues etc. Head light switch was the more reported problem in Nano cars. The
combination switch had to be replaced because the Headlight Dim switch started
malfunctioning. Another issue was with accelerator cables. It gets broke frequently. Starter
motor behaved as if there was a loose contact. Occasionally the motor wouldn’t crank when
the ignition switch was turned. Sometimes starter motor burnt off due to a malfunctioning
solenoid.. Nano shows vibrations before first service and certainly all Tata cars are a
vibration product.

2.2 TECHNICAL PROBLEM

2.2.1 Catching fire: - You have heard of some Nano cars got fire while driving. What the
company says about it is “It is a problem with the rear engine. The rear engine does not have
a proper cooling system as a result of which the engine heats up leading to such an incident.”
From these words, it seems to be the summer season will get Nano a fire drive.
 Figure 1(Tata Nano catches fire)

2.2.2 Problem with the electricity:-The AC Pre-tensioner belt needs some attention. It takes
2-3 Secs before the compressor kicks in. When it does – it is very audible since the belt is so
loose! Turn indicator become malfunctioning in Nano cars after 3 or 4 service. There is a
blind zone on the right side corner glass area. When you take a right turn, you may see a car,
but you may miss a two wheeler! This can cause accidents while overtaking or taking a hard
left or right. Nano gives good air conditioning for that cheap price. But AC air flow will get
drastically reduced after each month causing low cooling condition.

2.3. MANAGEMENT PROBLEM

2.3.1 Service related problem:-The basic problem with Indian manufacturers like Tata,
Mahindra etc. is that they don’t put enough effort in pre-launch testing and research on the
proposed cars rather, they launch the cars in basic form, let the people use it and in the due
course find out the defects in the car, give free service for 3-5 years, and then based on the
study.

2.4 GOVERNMENT PROBLEM

2.4.1 Road:-Indian roads are different from those German roads. During rainy season, Nano
losses its stability. After a good rain, our roads get muddier and Nano’s tiny wheel’s would
sink into mud. If Tata engineers could have developed the design for use on poor and
unpaved roads with tall wheels and lots of ground clearance, Nano could have been a best
budget vehicle. In huge gutters, Nano couldn’t survive due to its low displacement
 3.CHAPTER THREE
RESEARCH METHODOLOGY

3.1 TYPE OF RESERCH: - DESCRIPTIVE

No category of educational research is more widely used than the type of known variously as
the survey, the normative surveyor descriptive research.
Descriptive research is concerned with the present and attempts to determine the status of the
phenomenon under investigation.
3.1.1 The nature of research
The nature of descriptive research can be explained with reference of other research.
3.1.2 Descriptive and Historic research
A clear distinction can be drown between survey studies and historic studies on the basic of
time, the latter deals with past, the former with past, the former with present.
3.1.3 Descriptive research and Experimental research
Descriptive research as the oriented towards the determination of the status of the given
phenomenon rather than towards isolation of the causative factor accounting for its existence.
It is based on cross-sectional samples, the sample should be representative of the population.
Descriptive research involves large number of samples and experimental research include
small sample. Descriptive research investigates trend of characteristic of population. This is
less scientific and sophisticated.
3.1.4 Descriptive and Case study
Both type of research establish cause and effect of relationship.

3.2 PURPUSE OF DESCRIPTIVE RESARCH

The following are the main objective of descriptive research.

 To identify present conditions and point to present needs.

 To study immediate status of the phenomenon.

 Facts finding

 To examine the relationships of traits and characteristics (trends of patterns).

3.3 PROBLEM OF DESCRIPTIVE RESEARCH

 The problem of sampling, to select representative sample(size of the sample)
 The validity of the measuring instruments. Validity of the tool is crucial to the validity
of the finding study.

3.4 TYPES OF DESCRIPTIVE RESERCH

1. Survey testing.

2. The questionnaire, and

3. Interview

3.4.1 Survey testing

Survey testing researches are concerned with academic and psychological problem in which
academic and psychological test are administered for data collection.

3.4.2 The questionnaire

This type of descriptive reserch uses the questionnaire as reserch tool for data collection. It is
the most frequently used in this type of reserch. Reserches of this type are employed for
school and educational survey and also for educational admistration. Through this type of
reserch is considered the easy yet the investigator has to face the foll

The descriptive survey is more realistic than experimental research. Descriptive research are
oriented towards descriptive of present status of a given phenomenon. Special problem of
descriptive research are given below

Questionnaires are a good way to obtain information from a large number of people and/or
people who may not have the time to attend an interview or take part in experiments. They
enable people to take their time, think about it and come back to the questionnaire later.
Participants can state their views or feelings privately without worrying about the possible
reaction of the researcher. Unfortunately, some people may still be inclined to try to give
socially acceptable answers. People should be encouraged to answer the questions as honestly
as possible so as to avoid the researchers drawing false conclusions from their study.

Questionnaires typically contain multiple choice questions, attitude scales, closed questions
and open-ended questions. The drawback for researchers is that they usually have a fairly low
response rate and people do not always answer all the questions and/or do not answer them
correctly. Questionnaires can be administered in a number of different ways (e.g. sent by post
or as email attachments, posted on Internet sites, handed out personally or administered to
captive audience (such as people attending conferences). Researchers may even decide to
administer the questionnaire in person which has the advantage of including people who have
difficulties reading and writing. In this case, the participant may feel that s/he is taking part in
an interview rather than completing a questionnaire as the researcher will be noting down the
responses on his/her behalf.

3.5 PROBLEMS OF QUESTIONNARIRE SURVEY

 The first problem is faced in the planning a questionnaire and its development.

 Another problem is to get adequate answer or information through questionnaire, of

questionnaire is always doubtful.

 The reliability and validity of the data through questionnaire is doubtful.

 Sometimes it difficult to analyse the data. Only descriptive statistics can be used in
this type of data.

 Selection of large and representative sample.

3.6 ADVANTAGE OF QUESTIONNAIRE SURVE

The following are the main advantage of the of questionnaire survey research:

 Among the major advantage of the questionnaire is that it permits wide coverage at
minimum expense of both money and effort. It affords wide geographical coverage it
makes for greater validity in the result through promoting the selection of large and more
representative sample.

 The validity of the questionnaire data also depends in a crucial way on the validity
and willingness of the respondent to provide the information requested. Research has
shown that respondents are group of superior intelligence.
3.7 DISADVANTAGE OF QUESTIONNAIRE SURVEY
The major disadvantage of the questionnaire are responsibility of the misinterpretation of the
questions. Misinterpretations are due to respondent’s willingness or impersonality. Mailed
questionnaire usually impersonal. The reliability of the questionnaire is often ignored.

3.8 LITERATURE REVIEW

 Satisfaction is crucial concern for both customer and organizations. Satisfaction is a

subjective concept and therefore difficult to determine. It depends on many factors and
varies from to person and product to product. The importance of customer satisfaction in
strategy development for customers and market oriented cannot be under determined.
Now a day it has become very important factor for each and every organization to
enhance the level of customer satisfaction. The overall study reveals that It was found that
the customer are mostly satisfied with price, design, safety ,mileage, interior space, status
brand name, comfort level, spares part and after sale service.

 In this study concluded that mostly Tata customer purchased car on loan, used the
Tata car for personal purpose, having the car from 1-5 year and they are recommended by
their friends as well as take preventive maintenance from authorised dealer. In case of
level of customer satisfaction, It was found that the customer are mostly satisfied with
price, design, safety, mileage, interior space, status brand name, comfort level, spares part
and after sale service. Finding pertaining to most influencing show that most influencing
factor for customer satisfaction in case of Tata motors were mileage and interior space. At
the end finding pertaining to competitive position shows the customer preferred Maruti
800 as comparison to Tata Nano but mostly customers are loyal with Tata Nano.

 The present study is based on the awareness of TATA NANO cars among the
customers. A sample survey of 110 respondents was undertaken to find out the awareness
of TATA NANO cars in PANIPAT city. The study mainly concentrated on general
applications, general awareness, advantages and consumer preferences of TATA NANO
cars.

The project work titled “A study on customer satisfaction towards TATA NANO in
Panipat town”. The collected data was analysed using chi-square and Bar charts test.
2Certain factors which inhabit and facilities the customer preference of the availability
and reduce the price were found out. Based on the inferences draw certain suggestions
have been recommended. In this study an attempt is made to measure the customer
analysis and preference about these brands. It is found that customers are satisfied with
their brands

 This study attempts to find the factors, which are important for choosing the
revolutionary car ‘Nano’ launched by one of the leading Indian automobile industry
called ‘Tata Motors’. The year 2009 has been significant for Indian automobile industry
as numbers of new models were launched for the domestic market and also registered a
significant growth in exports. The report published by Cygnus research ranked Indian
automobile sector to be number one on the basis of sales growth and Profit After Tax
(PAT) growth during October- December 09 over October- December 08 over other 14
manufacturing sectors. The paper considers22 factors, which may be important in the
customer decision-making process. Two approaches viz. Grey Relational Analysis and
RIDIT analysis is used to rank the factor.

As per Cygnus Research (2009) report among the manufacturing industries, automobiles
witnessed highest growth followed by steel. Automobiles led to strong demand due to
signs of revival in economy and increasing trend in hiring especially in IT sector and
cheaper bank credit. In this context Tata Motors strategy of producing of people’s car for
India is rightly timed. The project is the realization of dream of Ratan Tata Chairman of
Tata groups to provide car to common men of India. The study carried out intends to have
an insight into prospective consumers mind for the car Nano.. The finding of the study
shows that price of the car is most important factor for selecting Nano followed by the
name TATA which stand quite tall in the country. The colour variant, style, fuel
efficiency and financing option offered by the company are other important factors which
attract the customers towards the car. Power, safety feature, prestige involved, resale
value of the car etc. are some of the features which ranks low in the priority of the
consumers.

 The key to success of automobile industry lies not only in having good designed
vehicles but also in being able to provide the customer with the level of service they
desire. Satisfaction is crucial concern for both customers and organizations. It depends on
many factors and varies from person to person and product to product. If customer
expectations meet with the perceived value of goods and service then customer is
satisfied but if the perceived value of goods and service is less than the customer
expectations then customer
is dissatisfied and if the perceived value exceeded the expected value of the goods and
service then the customer is delighted. Measuring customer satisfaction provides an
indication of how successful the organization is at providing products and/or services to
the marketplace. This study lays emphasis on Customer Satisfaction towards Tata Nano
Car. The present study reveals that the customers have a good preference towards TATA
Nano vehicle. They are mainly motivated by price of the car. The popularity of the brand
also, one of the factors urged the customers for their purchase decision. Overall, it can be
concluded that customers are satisfied with the price, appearance of the vehicle and
Comfort ability in crowded area but they expect variety of models.

 The Indian automobile industry is the tenth largest in the world with an annual
production of two million units. Indian Auto Industry promises to become the major
automotive industry in the upcoming years and the industry experts are hopeful that it
will touch ten million units mark. Tata Motors dominates over 60% of the Indian
commercial vehicle market. This study would be useful for companies to know the
acceptance level of NANO by its customers. It would be also useful for companies to
form strategies according to perception of people about Nano. This study is based on data
collected from fifty customers of TATAs Nano car confined to Coimbatore city. Primary
data was collected by using a structured questionnaire. The main factor that attracted and
influenced the purchase decision of Nano is its price. The study on perception of
customers on Tata’s
Nano car also gives an insight on the acceptance level of the respondents towards the
Tata’s Nano car.The study on perception of customers on Tata Nano car paves way to
understand the acceptance level of the respondents towards the product. The main factor
that attracted and influenced the purchase decision of Nano is its Price. The name as the
product features are created a big wave in the Indian automobile market not only standing
in line with the B segment in the four wheeler market, but also with the two wheeler
segment on the price factor Though there are drawbacks pertaining to the comfortness
and space they also feel that Nano is performing better than its main competitor
Maruti800. The study has helped to gain knowledge about the most talked low cost car
Tata Nano. From the study it is understood that Tata’s initiative to come up with such a
car must be appreciated.

 Tata Nano car has been one of the innovative products in designing the “cheapest
car.” It has caught attention and admiration from many major car manufacturers all over
the
world during Geneva conference. The path of Tata Nano car was not a easy one but had
problems of shifting the Singur plant to Sanad due to political pressures. With a strong
faith and creditability built by Tata Motors, their suppliers agreed to move to Sanad. In
2009, much awaited Tata Nano car was launched and there was very good response to car
booking. This shows the customers confidence in owning Tata Nano car. However there
were also reports of Tata Nano not meeting the safety standards and a incidences of fire.
With a reasonable number of users, the researchers decided to conduct a market study to
determine the customer

Satisfaction, to carry out gaps analysis and to find out whether any impact on Tata Nano
Car users in Pune city due to fire incidences reported earlier.
 The Tata Nano customers are not satisfied with the performance of the car.
 There is no significant difference between many attributes.
 Due to longer waiting period, there is significant gap noticed in waiting period.
 Fire incidences reported earlier has an impact on the customer’s satisfaction.
 Customers are satisfied with affordability of the Tata Nano car (Kurtkoti, 2011).

 A Tata Motor is one of the best cars manufacturing company in India, customers are
satisfied because of affordable price, but the maintenance is a problem and resale value is
very low. These are the two main reasons and other reasons are customer care does not
respond to customers complaints, so the customers are dissatisfied. TATA Motors have to
improve its customer care and decrees the price of their spare part and make available in
all part of the country (Sharma, 2010).

 The project work titled a studying on customer satisfaction towards TATA NANO in
Panipat City. The collected data was analyzed using chi-square and Bar charts test.
Certain factors which inhabit and facilities the customer preference of the availability and
reduce the price were found out. Based on the inferences draw certain suggestions have
been recommended. In this study an attempt is made to measure the customer analysis
and preference about these brands. It is found that customers are satisfied with their
brands.

 The quality teams have helped the service team to resolve repairs in the most effective
manner. The move helps in a revamped customer complaints management programed that
is backed now by a post-resolution feedback system to ensure lasting resolutions and
customer satisfaction, the spokesperson added.
Further, the company has worked on the supply side by re-working its logistics
management system for speedy spare parts delivery. It has also has enhanced its
distribution warehouse network with development of a warehousing facility in Panipat.
Further, the company has worked on the supply side by re-working its logistics
management system for speedy spare parts delivery. It has also has enhanced its
distribution warehouse network with development of a warehousing facility in Panipat.

 Customer satisfaction studies with current TATA NANO owners indicate that over
80% are satisfied or very satisfied with the car, because of it being small yet spacious, its
performance, manoeuvrability, durability, mileage and safety.Tata Motors Finance (TMF)
will provide finance up to 90% for the NANO at easy rates. TMF, which provides
customer finance for all Tata Motors vehicles. The move may help boost Tata Nano’s
flagging popularity, as sporadic incidents of the small car catching fire has made it
difficult for the company to push Nano sales The Tata Nano will now come with a four
year/60,000 km (whichever is earlier) manufacturer’s warranty, at no extra cost. Besides
being applicable on new deliveries, the warranty is also being extended to all existing
owners of the car.

 According to the report of Tata Company, NANO entered the Indian roads in the year
2009 and it is the cheapest car in the world replacing Maruthi 800. This article was an
introduction to Tata NANO car and its features with detailed information on making of
NANO. According to this article, buying a car is the major dream for many people in
India, especially for middle income and rural people.
Even though two wheelers are widely used in India, people are still looking to buy car
according to their budget. Ratan Tata owner of Tata Motors specified his views on
NANO that it is the only car that has fulfilled the dream of individuals to buy a car with
general income. Tata NANO price is one lakh Indian rupees which is equal to that of two
wheeler price.
The establishment of NANO can be considered as the competitive strategy of Tata
Motors in order to attract customers of all ends. The detailed information on facts and
figures of Tata NANO is explained in detail and according to TATA report NANO is “the
people’s car”. The significant information available on Tata NANO is explained clearly
but still this article should be improved with new information on review of Tata NANO
customers.
Tata NANO is taken as an example in the research process and for this specific reason
this article is used in the research and analyzed according to the research requirements.
The report submitted by PCTI (2011) includes significant information on overview of
Tata NANO car along with its features, benefits etc. This article includes the significant
information on conception and design of NANO car, expectations of customers on
NANO introduction, modular design, pricing strategy and release date etc. On the other
hand, this article even explained the impact on NANO car on Indian economy along with
opinions of different analysts on Tata NANO car. This article includes a table that
contains detailed information on entire features of Tata NANO car and their
specifications. This article even explained the information on reviews of different
communities of people who has used Nano cars previously. The actual failures and
problems of Tata NANO car are explained clearly. Finally this article includes the
information on major competitors of NANO car such as Bajaj Auto and some other
electric cars.
The future work is required in order to explain more reviews on NANO car in order to
identify whether NANO is a useful car or not.
NANO car is taken as example in the research process and information on NANO is
considered from this article.

 The study on perception of customers on Tata Nano car paves way to understand the
acceptance level of the respondents towards the product. The main factor that attracted
and influenced the purchase decision of Nano is its Price. The name as the product
features are created a big wave in the Indian automobile market not only standing in line
with the B segment in the four wheeler market, but also with the two wheeler segment on
the price factor Though there are drawbacks pertaining to the comfortness and space they
also feel that Nano is performing better than its main competitor Maruti- 800. The study
has helped to gain knowledge about the most talked low cost car Tata Nano. From the
study it is understood that Tata’s initiative to come up with such a car must be
appreciated.

 Expectations created for the car during the run up to its production may have been out
of proportion with its realised success. By Indian rating agency CRISIL, thought the
Nano would expand the nation's car market by 65%, but, as of late , news reports have
detailed the underwhelming response of the Indian consumer to the offering; sales in the
first two fiscal years after the car's unveiling remained steady at about 70,000 units
although Tata
 appears intent on maintaining a capacity to produce the car in much larger quantities,
some 250,000 per year, should the need arise
 It was anticipated that its debut would greatly affect the used car market, and prices did
drop 25–30% prior to the launch. Sales of the Nano's nearest competitor, the Maruti 800,
fell by 20% immediately following the unveiling of the Nano. It is unknown if the Nano
has had a lasting effect on the prices of and demand for close substitutes, however. In
July, Tata's Group chairman Ratan Tata, who retired in January, said that the car had
immense potential in the developing world while admitting that early on opportunities
were wasted due to initial problems.

 This case study narrates the insightful and interesting story of Tata Nano, the world's
cheapest car. Though much applauded and publicized for the feat of having manufactured
a car at an impossibly low cost, Tata Motors (the company which developed this car)
faced many challenges in making this car a viable commercial proposition. This paper
discusses as to what went wrong and what remedial steps could be taken to make this car
commercially successful.

 In the first year, sales of NANO are two high and many low-income customers
purchased NANO car in the place of two wheelers. In simple words NANO replaced
Maruti 800 and became major competitor for many other car companies in the automobile
market. The best example is that many companies are offering NANO car as incentives
and benefits to their employees. The low price of NANO attracted many customers and
allowed them to buy a car and fulfil their dream. The maintenance of NANO car is even
less according to low budget of customers. According to this article no other car company
in the world is offering a car with one lakh rupees which can be considered as the major
competitive benefit to Tata Motors. Even though there are many other cars in the markets
with good features, most of the people prefer NANO as the car because of its low price.

 Even though two wheelers are widely used in India, people are still looking to buy car
according to their budget. Ratan Tata owner of Tata Motors specified his views on
NANO that it is the only car that has fulfilled the dream of individuals to buy a car with
general income. Tata NANO price is one lakh Indian rupees which is equal to that of two
wheeler price. The establishment of NANO can be considered as the competitive strategy
of Tata Motors in order to attract customers of all ends. The detailed information on facts
and figures of Tata NANO is explained in detail and according to TATA report NANO is
“the people’s car”. The significant information available on Tata NANO is explained
 clearly but still this article should be improved with new information on review of Tata
NANO customers.

 Mentioned a study on “customer satisfaction, dissatisfaction and post purchase

evaluation: an empirical study on small size passenger cars in India” with the main
objectives to examine the satisfaction and impact on future purchase decision and explore
the performance of different attributes in automobile in giving satisfaction to customer
with the sample size of 150 customers and they revealed from this study that customers
are highly satisfied with the performance of attributes like pickup, wipers, etc. and other
attributes like pollution, engine, battery performance, and pick up influence the consumer
5future Purchase decisions and consumer give the more importance to these factors.

 The customer satisfaction level” with the sample size of 150 customers. The
objectives of the study was to identify the post purchase behaviour and customer
satisfaction level and find the effectiveness of after sales service of customer of Hyundai
i10. They revealed from the study that customers are satisfied with the car after purchase
because its gives the feel of luxury to customers and a convenience of smaller car in
crowded area

 Revealed study on “Customer satisfaction towards Tata Motors - A study on

Passenger cars in Warangal district of Andhra Pradesh” with the objectives to study the
customer satisfaction with the usage of vehicles, after sale service, key area of strength,
pricing affects, service and quality. They take the sample of 100 respondents and used the
percentage technique. They concluded from the study that majority of customers are
satisfied with the safety, dealer.

 Investigated the effects of the intrinsic cues of price brand and store information on
consumer perception of product quality. They found that price had a positive effect on
perceived quality but a negative effect on perceived value and respondent’s willingness to
buy. Samson Itamer (1992) has observed that purchase decisions are determined on the basis
of both absolute attributes of the alternatives and their relative positions within the particular
choice set under consideration. He has further suggested that consumers are less likely to
choose alternatives that are offered with unneeded features or premium even when the
features do not reduce the value of the product in any way. Aradhana Krishna (1994) viewed
that buyers purchase behaviour can be influenced not only by the current price of a product
but also by what price they expect in future
5

4. CHAPTER FOUR
DISCUSSION AND FINDING OF THE WORK
4. 1 SWOT ANALYSIS
4.1.1 Introduction
The point of a SWOT analysis is to help you develop a strong business strategy by making
sure you’ve considered all of your business’s strengths and weaknesses, as well as the
opportunities and threats it faces in the market place. S.W.O.T. is an acronym that stands for
Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list
of your business’s greatest strengths, weaknesses, opportunities, and threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location).
Change them over time but not without some work. Opportunities and threats are external
(think: suppliers, competitors, prices) they are out there in the market, happening whether
you like it or no (Berry, 2009).

4.1.2 Strength

 Very affordable price.

 Easy to drive in traffic conditions.

 Innovative engineering which provides better facilities compared to same segment cars.
 Low maintenance and handling cost.
 Good fuel efficiency.
 When it was introduced it created a huge buzz in the global automobile industry being a
‘common mans’ car.

Price itself was a major strength factor for the mini magical vehicle which created a sensation
all over the world. Even US pr

4.1.3 Weakness
 Perceived as a cheap product which repels the aspirational customers.

 Setting up of production plant in WB caused a lot of tension.

 Smaller fuel tank and less powerful engine.
 Limiter international presence.
The launch price came in two variants ranging between 1.2 lacks to 1.5lacs. It was 20 – 50%
higher than the proposed rates which was a major setback to customers. Within a few months
of initial sales, technical problems were found in the product and there were a few reports of
Nano catching fire, which further weakened the trust for the brand ‘Nano’ as a whole. Tata
also faced political problems and had to shift the plant location which led to production
delays. And now due to inflation, Nano’s prices have further increased due to increase in the
prices of raw material such as steel, rubber and others (Goodrich, 2015).

4.1.4 Opportunity
customers.
Capitalize on the fact that it is the most affordable car and acquire new

 Increasing per capita income and purchasing capability of potential customer base.

 Introduce CNG model at the earliest and attract the public passenger car segment.

 Increase international market presence especially Europe.

 Augmenting the distribution and service network in various countries

(Goodrich, 2015).

4.1.5 Threats
 Increasing fuel costs.

 Competition from other big automobile giants.

 Competitive products offering same level features at a lesser price.
 Product innovations and frugal engineering by competitors.
 Customer perception of a cheap car can lead to loss of sales.
After the launch of Nano there were many manufacturers who wanted to take advantage of
the hype of the Tata Nano, and started working on manufacturing an alternative for Nano.
Upcoming cars like H800 from Hyundai priced around 1.6 lac, Maruti Cervo 600cc priced
around 1.7 lacks to 2lacs were imposing threats to further growth of Nano’s market share.
Vehicles like Alto, Chevy Spark and second hand vehicles were major substitutes for Nano.
People were looking for alternatives for the main reason that it cannot be much used for
driving in highways or long distances as the engine cc is low. The main threat was from an
indirect competitor – Motorcycles. Nano was in between motorcycles and car and it was
proving to be unreliable due to technical glitches. Thus some people were going for the cost
effective solution of buying motorcycles thereby affecting Nano sales (Goodrich, 2015).

4.2 COMPETETOR OF TATA NANO

 Maruti Alto
 Hyundai EON

 Maruti 800

4.2.1 Compression between Maruti Alto 800 and Tata Nano

4.2.2 Exterior Maruti Suzuki Alto 800 vs. Tata Nano
The Nano has a jelly bean design with its tall design language. Some also claim that the Nano
is inspired from SMART series of cars. The company wanted to make a small car but without
it being too congested. A design which shouldn’t look compromised. The Nano has a sloping
pillar which flows above the roof and falls on the tail in the form of a moon’s crescent. The
ultra slim tail lights give the car a smart profile.

Figure 2(Maruti Alto 800)

The Alto 800 looks as if the designers submitted their mast minute job to their bosses. It
seems copied from other popular selling models like the Figo, i20 etc. It looks tacky and
makes the classic 800 make a lot better compares to this. A myth that small budget cars
cannot look good was broken by Hyundai when they launched the Eon. The Alto 800 does
not impress seen from any corner. Be it the unfinished design language or the weirdly small
tyres. This car snatches the crown of being the most disappointing design from Estilo.

4.2.3 Interior Maruti Suzuki Alto 800 Vs Tata Nano

The Nano’s interiors have recently gone through an upgrade and now offer features like
music system, Bluetooth connectivity etc. It has power windows for the front row seats while
the rear does not get them. This is the most spacious micro hatch you will come across. Even
the taller passengers cannot possibly crib of any space issue as the Nano is wider, taller and
longer then a normal micro hatch. Tatas claim this one to be 20% more spacious than the 800.
Figuratively, it may sound less but then in real it is quite a lot.

The Alto 800 may not be as spacious as Tatas offering but then average sized passengers
won’t be complaining at all. It manages to offer some basic frills and gizmos which are not
engaging for the driver but then connects better with the audience of such cars.

4.2.4 Performance Maruti Suzuki Alto 800 Vs. Tata Nano

The Alto 800 has a bigger engine as it has a 796cc petrol engine which produces a power
output of 48PS at 6000 rpm and a torque of 69Nm at 3500 rpm. It has a 5 speed manual
transmission. The Alto 800 claims to be a better handler than its earlier versions but then it
misses on the punch. The Alto 800 doesn’t perform as effective as the earlier Alto K10.

Figure 3(Tata Nano)

The Tata Nano is equipped with a 624cc two cylinder MPFI engine which produces 38 PS
power at 5500 rpm and a torque of 51Nm at 4000 rpm. It has 4 speed manual transmissions.
The Nano has a very functional engine and not at all peppy. It has decent handling. The
shortage of power that’s felt on long free roads is however compensated in traffic jams. One
can take this vehicle through any corner of any dimension possible. So when all the big high
performance cars are stuck in jams, the pint sized Nano can take you through the rough
tarmac beside the road and envy all.

4.2.5 Conclusion Maruti Suzuki Alto 800 Vs Tata Nano

Tata Nano being cheaper does not make any less than the Maruti Alto 800. With the top-end
LX Nano, we can expect two front power windows and an efficient air conditioning system
as well as fog lamps, which surprisingly are not available in the Maruti Alto STD. In terms of
space, Maruti Alto 800 is the favourite, with ample space to carry four individuals easily (five
at a squeeze) and luggage carrying volume of close to 170 litres compared to 80 litres of
Nano. That said, the Nano has as much head room and leg room as the Alto for all the four
passengers, which makes it unexpectedly spacious.

4.3 4PS OF MARKETING

4.3.1 How 4Ps of marketing beneficial?
The definition that many marketers learn as they start out in the industry is:

Putting the right product in the right place, at the right price, at the right time.

It's simple, just need to create a product that a particular group of people want, put it on sale
some place that those same people visit regularly, and price it at a level which matches the
value they feel they get out of it; and do all that at a time they want to buy. Then you've got it
made.

There's a lot of truth in this idea. However, a lot of hard work needs to go into finding out
what customers want, and identifying where they do their shopping. Then you need to figure
out how to produce the item at a price that represents value to them, and get it all to come
together at the critical time.

But if you get just one element wrong, it can spell disaster. You could be left promoting a car
with amazing fuel-economy in a country where fuel is very cheap; or publishing a textbook
after the start of the new school year, or selling an item at a price that's too high – or too low
– to attract the people you're targeting.
4.3.2 Understanding the Tool
The marketing mix and the 4Ps of marketing are often used as synonyms for each other. In
fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of choices
organizations have to make in the whole process of bringing a product or service to market.
The 4Ps is one way probably the best-known way of defining the marketing mix, and was
first expressed in 1960 by E J McCarthy.

4.3.3 THE 4PS ARE

 Product (or Service).
 Place.
 Price.
 Promotion.

A good way to understand the 4Ps is by the questions that to ask to define your marketing
mix. Here are some questions that will help you understand and define each of the four
elements.

4.3.3.1 Product/Service
What does the customer want from the product/service? What needs does it satisfy?
 What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't actually use?
 How and where will the customer use it?
 What does it look like? How will customers experience it?
 What size(s), colour(s), and so on, should it be?
 What is it to be called?
 How is it branded?
 How is it differentiated versus your competitors?

 What is the most it can cost to provide, and still be sold sufficiently profitably
(James
Manktelow & Amy Carrion)?
 How can you access the right distribution channels?
 Do you need to use a sales force? Or attend trade fairs? Or make online
submissions? Or send samples to catalogue companies?
 What do you competitors do, and how can you learn from that and/or differentiate?
4.3.3.3 Price
What is the value of the product or service to the buyer?

 Is the customer price sensitive? Will a small decrease in price gain you extra
market share? Or will a small increase be indiscernible, and so gain you extra profit
margin?

 What discounts should be offered to trade customers, or to other specific segments

of your market?

 How will your price compare with your competitors? [James Manktelow & Amy
Carrion]

4.3.3.4Promotion
Where and when can you get across your marketing messages to your target market?
 Will you reach your audience by advertising in the press, or on TV, or radio, or on
billboards? By using direct marketing mailshot? Through PR? On the Internet?

 When is the best time to promote? Is there seasonality in the market? Are there any
wider environmental issues that suggest or dictate the timing of your market launch, or
the timing of subsequent promotions?

 How do your competitors do their promotions? And how does that influence your
choice of promotional activity (James Manktelow & Amy Carrion)?

4.3.3.5 Enhancement in 4Ps of marketing

The 4Ps of marketing is just one of many lists that have been developed over the years. And,
whilst the questions we have listed above are key, they are just a subset of the detailed
probing that may be required to optimize your marketing mix.

Amongst the other models that have been developed over the years is Boom and Bitner's 7Ps,
sometimes called the extended marketing mix, which include the first 4Ps, plus people,
processes and physical layout decisions.

Another approach is Lauterborn's 4Cs, which presents the elements of the marketing mix
from the buyer's, rather than the seller's, perspective. It is made up of Customer needs and
wants (the equivalent of product), Cost (price), Convenience (place) and Communication
(promotion). In this article, we focus on the 4Ps model as it is the most well-recognized, and
contains the core elements of a good marketing mix. [James Manktelow & Amy Carrion]

4.3.3.5Use of 4Ps of marketing

The model can be used to help to decide how to take a new offer to market. It can also be
used to test your existing marketing strategy . Whether you are considering a new or existing
offer, follow the steps below help you define and improve your marketing mix.

 Start by identifying the product or service that you want to analyze.

 Now go through and answer the 4Ps questions – as defined in detail above.

 Try asking "why" and "what if" questions too, to challenge your offer. For
example, ask why your target audience needs a particular feature. What if you drop
your price by 5%? What if you offer more colours? Why sell through wholesalers
rather than direct channels? What if you improve PR rather than rely on TV
advertising? [James Manktelow & Amy Carrion]

4.4 MASLOW’S THHEORY OF MOTIVATION

Maslow was a behavioural scientist; spend most of life in analyzing the behavior of workers.
Maslow’s theory relates the hierarchy of needs and the motivation of workers. For example if
you take any normal worker they set a specific goal or need and motivate themselves, when it
is achieved they motivate them self for the next goal. So, for motivating anyone the
knowledge of his need is very important and according to the needs a worker can be placed in
any one of the hierarchy of needs. The hierarchy is provided below in figure. For each
category of need, suitable motivation is provided in this theory.

Figure 4(Maslow's theory)

Physiological Needs includes basic needs like food, clothes, shelter, sleep etc. Safety Needs
includes physical safety, income loss, stability etc. Social Needs includes love, support,
friends etc. Esteem Needs includes appreciation, promotion, rewards etc. Self-actualization is
thinking of people for them and this includes self-respect, personal growth etc. Maslow
theory is of utmost important for Ambey spinning mills because this theory deals with
motivating workers according to their needs. Since many of problems identified falls in this
pyramid of needs like safety needs and social needs.
4.5 Sampling Frame: - The list of sampling units from which sample is taken is called
sampling frame. Panipat City map was studied thoroughly and samples were selected from
the place in a scattered manner to get effective result.
4.6 Sampling Technique: - Convenient Sampling.
4.7Sampling Size: - Total sample size is 25 and got back 23 sample.
Response rate: 92 %( percentage).

4.8 PIE CHART BASED ON THE QUESTIONNAIRE

1. Gender

Pie Chart of Gender

Category
F
M

34.8%

65.2%

Figure 5(Pie chart of gender)

 Questionnaire filled by male i.e. 65.2%.

  Questionnaire filled by female i.e. 34.8%

2. AGE

Pie Chart of Age

Category
18
4.3% 19
4.3%
17.4% 20
4.3% 21
22
4.3% 23
24
28
36
8.7%
13.0%

17.4%

17.4%

8.7%

Figure 6(Pie chart of age)


Questionnaire filled by below 18 i.e. 17.4%.

Questionnaire filled by 19 year old i.e. 8.7%.

Questionnaire filled by 20 year old i.e. 17.4%.

Questionnaire filled by 21 year old i.e. 8.7%.

Questionnaire filled by 22 year old i.e. 17.4%.

Questionnaire filled by 23 year old i.e. 13.0%.

Questionnaire filled by 24 year old i.e. 2.3%.
3. Educational Qualification

Pie Chart of Educational Qualification

Category
College Degree
4.3% Graduate school Degree
High school Deploma
Less than high school

43.5%

43.5%

8.7%

Figure 7(Pie chart of educational qualification)


Qualification of the respondent which have college degree i.e. 43.5%.

Qualification of the respondent which have graduated school program degree i.e.
8.7%.

Qualification of the respondent which have high school diploma i.e. 43.5%.

Qualification of the respondent which have less than high school diploma i.e. 43.5%.
4. Occupation

Pie Chart of Occupation

Category
other
13.0% professional
student

13.0%

73.9%

Figure 8(Pie chart of occupation)

 Qualification of the respondent which have opted occupation of professional

i.e. 43.5%.
 Qualification of the respondent which have opted occupation of student i.e.
73.5%.
 Qualification of the respondent which have opted occupation of other i.e. 43.5%.
5. INSPIRATION OF NANO

Pie Chart of Inspiration for Nano

Category
All the Above
13.0% can not say
Design
Mileage
4.3% Price

17.4%

60.9%

4.3%

Figure 9(Pie chart of inspiration of Tata Nano)

This pie chart tells that which feature of Tata Nano attract them are given below are:-
 17.4% of the respondent attracted by design.
 4.3% of the respondent attracted by mileage.

 60.9% of the respondent attracted by price.

 4.3% of the respondent attracted by can’t say.

 13.0% of the respondent attracted by design.

6. Purpose to use Nano

Pie Chart of Purpose to use Nano

Category
Any other
4.3%
for children instead of two wheeler
17.4%
for family

for gift
21.7%
Prefere as a texi

17.4%

39.1%

Figure 10(Pie chart of purpose to use Tata Nano)

This pie chart of tells about purpose of use of Tata Nano:-
 39.1% of the respondent told that Nano only for family use.
 17.4% of the respondent told that Nano only for gift.

 17.4% of the respondent told that Nano only for refer use as taxi.

 21.4% of the respondent told that Nano only for children instead of two wheeler.

 4.3% of the respondent told that Nano only for any other.
7. Nano is Chip or Economical

Pie Chart of Nano is chip,economical

Category
Agree
Disagree
17.4%
Neutral
strongly Agree
30.4%

30.4%

21.7%

Figure 11(Pie chart of chip or economic)

This pie chart tells about Tata Nano is cheap or economical and opinions of the user
given below in the percentage:-

 30.4% of the respondent agree.

 21.4% of the respondent disagree.

 30.4% of the respondent neutral.

 17.4% of the respondent strongly disagree.

Level 2 Asia Pacific Institute of Information Technology 2015
8. Is Nano People’s car

Pie Chart of Is Nano Peoples car

Category
Agree
Disagree
17.4% Neutral
strongly Agree

13.0%

56.5%

13.0%

Figure 12(Pie chart of Nano peoples car)

This pie chart shows about opinions of the respondent about, is Tata Nano peoples car ?
 56.6% of the respondent agree.
 13.0% of the respondent disagree.

 13.0% of the respondent neutral.

 1704% of the people strongly disagree.

9. colour preferable for Tata Nano

Pie Chart of Colour preffered for nano

Category
Blue
Red
21.7%
White
Yellow
34.8%

26.1%

17.4%

Figure 13(Pie chart of preferred for Nano)

This pie chart tells that which colour preferred for Nano.
 27.7% of the respondent prefer blue colour.
 26.1% of the respondent prefer red colour.
 17.4% of the respondent prefer white colour.
 34.8% of the respondent prefer yellow colour.
10. Preferable car

Pie Chart of Prefferable car

Category
Maruti 800
4.3% other
Tata Nano

34.8%

60.9%

Figure 14(Pie chart of preferable car)

This pie chart shows that preferable car are:-
 4.3% respondent prefer Maruti 800.
 60.9% respondent prefer Tata Nano.

 34.8% respondent prefer other car.

11. Price of Nano same in future

Pie Chart of Price of Nano same in future

Category
Agree
4.3% Disagree
8.7% Neutral
strongly Agree
strongly Disagree
30.4%

4.3%

52.2%

Figure 15(Pie chart of price of Nano same in future)

This pie chart shows that opinion of the people about the price of Tata Nano same in future:-
 30.4% respondent told that agree.
 4.3% respondent told that disagree.
 52.2% respondent told that neutral.
 8.7% respondent told that strongly agree.
 4.3% respondent told that strongly agree.
12. Nano affect traffic

Pie Chart of Nano affect Traffic

Category
Agree
8.7% Disagree
Neutral
strongly Agree

26.1% 43.5%

21.7%

Figure 16(Pie chart of Nano affect Traffic)

This pie char tells about effect of Nano on the traffic are given below:-
 43.3 % of the people are agree.
 21.7 % of the people are disagree.

 26.1% of the people are agree.

 8.7% of the people strongly agree.

13. Nano is Safe

Pie Chart of Nano is safe

Category
Agree
13.0% Disagree
Neutral
Strongly Agree
26.1%

34.8%

26.1%

Figure 17(Pie chart of Nano is safe)

This pie chart tell about safety of Tata Nano are given below:-
 26.1% of the people are agree.
 26.1% of the people are disagree.

 34.8% of the people are neutral.

 13.0% of the people are strongly agree.

14. Expected feature in Nano

Pie Chart of Expected feature in Nano

Category
Good mileage
Good seating capacity
High quality
Low price
26.1%

39.1%

8.7%

26.1%

Figure 18(Pie chart of expected feature in Nano)

This pie chart tell that expected feature in Nano are given below:-
 26.6% respondent prefer good mileage.
 8.7% respondent prefer good seating capacity.

 26.6% respondent prefer high quality.

 26.6% respondent prefer low price.

15. Nano is suitable for user

Pie Chart of Nano is suitable for you

Category
Agree
Disagree
21.7% 21.7% Neutral
Strongly Agree

26.1%
30.4%

Figure 19(Pie chart of Nano is suitable for user)

This pie chart shows that Nano is suitable for user pinion given below:-
 21.7% says agree.
 21.7% says disagree.

 30.4% says neutral.

 21.7% says strongly agree.

16. Recommended Nano for Relative

Pie Chart of Recomend Nano for Relative

Category
Agree
13.0% Disagree
Neutral
Strongly Agree

21.7% 47.8%

17.4%

Figure 20(Pie chart of recommended Nano for relative)

This pie chart sys that Nano recommended for your relative:-
 47.8% of the people are agree.
 17.4% of the people are disagree.

 21.7% of the people are neutral.

 13.0% of the people are strongly agree.

 5 CHAPTER FIVE
CONCLUSION AND RECOMMENDATION TO SOLVE THE
IDENTIFIED ISSUES
5.1 CONCLUSION
Thus far, we have analysed, in isolation, the Tata Nano crisis, as a case study of India’s
attempt to industrialize. Evidently, opposition from various stakeholders, while reasonable to
a certain extent exemplifies the perpetual resistance that continues to hinder industrialization
in developing countries such as India. The Tata outcome is therefore an awakening call to not
just India, but also other developing nations to never underestimate the value that non-market
strategic coordination brings to revolutionary propositions.

5.2 RECOMMENDATIONS
5.2.1 Focus on youth
To build a youthful and aspirational value around the brand, Tata Motors through its
'awesomeness' branding and marketing campaign worked with fashion designer Masaba
Gupta on the launch of the Twist. The makeover campaign is an attempt to get youngsters to
look at the Nano as a fashion accessory. "Young consumers want complete accessorisation in
the car like alloy wheels, different interiors, spoilers and graphic designs," explains Arora.
The company promises more on-ground activities and showcases at colleges to woo the
youth.

5.2.2 Government Involvement

Once Tata has purchased working relationships with all parties, it can use these relationships
to make non-manufacturing investments into the Singur community. Although the land
payoffs were clearly above market price, investments into technical and agricultural training,
and other social programs may convince the Minority Farmers that Tata’s purpose is not to
negatively transform their lives, but rather to allow them to elevate themselves through a
continuation of their “traditional” Bengal lifestyle.

Most importantly, it is very clear that political parties have limited commitment to a set of
values, and are extremely willing to adopt new ideas or positions based on an idea’s potential
to either relict their party, or bring their party to prominence. Tata must make sure that it has
the support of all parties to forestall its temporary allies from shifting positions

5.2.3 More Effective Branding

By branding the Nano Plant as an investment in the future, as well as labelling the Nano,
“The Pride of Bengal”, Tata will be able to build local support to complement its previous
status as a national brand. Because most farmers’ “sphere of influence” extends only to the
state level, Tata must reinvent itself as a local company, or risk losing the support of the
Minority Farmers who only view themselves as citizens of Bengal, rather than India.

5.2.4 Tata Nano Coalition Prospects

Ideally, Tata would have been advised to formulate a coalition building strategy to broaden
its West Bengal production facility proposition support base. In particular, forming a
coalition within Tata’s supply chain would have enhanced Tata’s position with respect to
government contacts.

If the issues that Tata currently faces have a similar impact on the rest of the auto industry,
then a trade association could lobby for a better result. However, because the issues are
unique to Tata and do not necessarily threaten the auto industry in entirety, the coalition
prospects for Tata are exponentially diminished. Particularly after the Nano innovation, Tata
has a first mover advantage in the affordable mini-car space.

The interest groups associated with the Tata Nano from a competitive standpoint will not
work on the same side for the following reasons:

5.2.5 Tata’s Cost Advantage

Tata has priced the Nano at $2,500 and clearly has a cost advantage compared to competitors
like Bajaj, Toyota IQ, Nissan-Renault and Maruti who have a priced a similar vehicle at
$5,000. With this cost edge, there are no incentives for competitors like Bajaj and Maruti to
form a coalition with Tata to succeed in West Bengal. Rather, the roadblocks that Tata
continues to experience in West Bengal have in turn been leveraged by competitors such as
Bajaj and Maruti to promote their Nano rivals.

5.2.6 Tata’s Targeting Marketing

Tata has created the Nano not just to meet market needs in India but also to meet needs in
other emerging markets, thus becoming a fierce competitive threat to other multinational car
manufacturers’ businesses. Instead, Tata’s competitors are using this delay to gain similar
first mover advantages in emerging markets (such as China) by marketing their low-cost cars
to rival the Nano
5.2.7 Tata’s “Home Country” Bias
Because Tata has a “home country” advantage in India, most of the customers in India will
favour the Nano over other low-cost cars that are not just foreign, but also more expensive.
While some of the local, but smaller Indian automakers might be in a position to form an ad
hoc coalition with Tata due to the seeming homogeneity of their interests, any marginal gains
made by this kind of coalition would not favour the smaller-sized auto manufacturers.

5.2.8 Develop Grassroots-level communications

Tata should have deployed grassroots-level communications in order to better reach the
Singur communities. One way of approaching this challenge could have been to hire local
people to counter the language and culture barriers of the region. Having natives working for
Tata could have made easier for the company to provide compelling explanations and help
Minority Farmers to better understand the benefits that the Nano could bring into the area.
Tata could have contacted NGOs working in the area, as a starting point to learn and receive
guidance on how to learn the peculiarities of the people living in Singur.

An important part of this tactic would have been to identify and convince community leaders
to use their power of influence to convince Minority Farmers. By having these people explain
the pros and cons of bringing the manufacturing facility to Singur, Tata may have been able
to successfully enter and remain in Singur.

5.2.9 Create True Stakeholders

Thus far, Tata has failed to create true non-market stakeholders who have a vested interest in
the idea of the Nano plant being located in Singur. All supporters of the plant outside of the
economic value chain have demonstrated their opportunism and ability to switch sides of the
argument based on whomever is in power, or offering more compensation. By creating
committed stakeholders who are convinced that the idea of the plant is positive, Tata can
strengthen its position within the community.

In the introduction of every new product, it is important to remember the various stages of
adoption within the general public. The first four categories of “customers” (Innovator, Early
Adopter, Early Majority, and Late Majority) have been convinced of the merits of the Plant
through the usage of fair land payments and other government efforts.

The remaining category, (Holdouts) has a different set of motivations from the general
public, and as such must be treated and approached differently. By properly identifying
portions of the population that may fall into the Holdout category, Tata may be able to judge
the probability of success for its plant. Most new ideas have at least 5-10% of a target
population residing in the Holdout category, yet Singur has almost 17% of the total
population falling into the Holdout category.
 6 CHAPTER SIX
REFERENCING
1. Arunpriya,S.,& Devi, M.S.,(2013)A Study on Customer Satisfaction Towards Tata
Nano Car with Special Reference to KARNAL City. GRA - GLOBAL RESEARCH
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 APPENDIX

QUESTIONNAIRE OF TATA-NANO

Dear respondents,
We all are students of Asia Pacific Institute of Information Technology. As a part of my
curriculum. We are conducting a research on “consumer satisfaction of TATA NANO” It
would be a great help if you please spare some of your time to fill this questionnaire. The
responses would be kept strictly confidential & use to data analysis only for academic
purpose only.
1. What’s your good Name: -

Email ID:-

2. Which category below includes your age?


Options mark
a) Below 20
b) 18-20
c) 21-29
d) 30-39
e) 40-49
f) Above 50

3. What is your gender?


Options mark
a) Male
b) Female

4. What is the highest level of education that you have achieved?


Options mark
a) Less than high school diploma
b) High school diploma or GED
 c) Associates degree or trade school
d) College degree
e) Graduate school degree

5. What is your Occupation?


Options mark
a) Student
b) Professional
c) Other

6. What is the first thing, which comes into your mind when you
think about NANO?

7. Which feature of NANO attracts you most, that inspires you to go

for NANO?

Options mark
a) Price
b) Design
c) Mileage
d) Interior space
e) All the above
f) Can’t say

8. For what purpose would you like to use NANO?


Options mark
a) Will offer it to your children to
use it in place of a two wheeler.
b) Will use as family car for
shopping and travel.
c) Will prefer as a taxi.
 d) Would like to offer as gift.
e) Any other.

9. If the price of NANO rises, would you still purchase it?


Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

10. Is TATA NANO cheap, economical, affordable and compact car as compared to other
cars in small car segment?

Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

11. Do you think NANO is people's car?


Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

12. Which colour of NANO would you prefer?


Options mark
a) Red
b) White
c) Blue
 d) Yellow
e) Graduate school degree
f) Other

13. Which small car would you prefer to buy?


Options mark
a) Maruti 800
b) TATA NANO
c) Other

14. Will Tata be able to maintain the price of Nano in future if there is hike
in cost of raw materials?

Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

15. Will there be traffic problem with the introduction of Nano on Indian?

Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

16. Can you trust NANO for safety?


Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
 e) Strongly agree

17. What type of features are you expecting in a Nano car?


Options mark
a) Low price
b) Good mileage
c) Good seating capacity
d) High Quality

18. . Do you think a Tata Nano car is suitable for you?


Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree

19. . Which marketing source will initiate you to purchase a Nano car?

Options mark
a) Advertisements
b) Marketing staff
c) Feedback and review of existing
customers
d) All the above

20. Will you recommend NANO to your friends and relatives?


Options mark
a) Strongly agree
b) Agree
c) Neutral
d) Disagree
e) Strongly agree
21. For what purposes would you use Nano?

Options mark
a) Family car for shopping
&travelling
b) Instead of bikes
c) Second car
d) Easy for a new driver
e) For short distance travel

22. Would you say” Nano is a people’s car” & recommend to others?

Options mark
a) Yes
b) No
c) Recommended
d) ) People’s car

23. Any suggestion please write in provided space given below?

24. Any type of problem you have while driving the car ?

25. Will there be traffic problem with the introduction of Nano on

Indian roads?

Options mark
a) Strongly agree

b) Agree
c) Neutral
 d) Disagree
e) Strongly agree

Thanks dear respondent for sharing your valuable time with us.
Signature of respondents.
………………………

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