TATA NANO

Presenters:
Sumeet Parkar 03
Parikshit 05
Onil 14
Sripad 15
Mahesh 16
Akash 26
Sumit sahu 45
Radhika 46
Started with a Promise Sonu 55
Ankush 59
 Table of Contents
• Idea Generation and Screening
• Concept Development and Testing
• Marketing Strategy
• Business Analysis
• Product Development
• Test Marketing
• Commercialization
 Introduction to Tata Motors
• Established in 1945

• Plants in Jamshedpur, Lucknow and Pune.

• Passenger cars and commercial vehicles

• 350000-400000 vehicles per year

• Turnover $21.9 bn.

 IDEA GENERATION
• Idea conceived by - Rattan Tata

• Cost of development - 1700 crores

• Manufacturing cost(excluding dealer margin )- 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

“It led me to wonder whether one could conceive of a safe, affordable, all-
weather form of transport for such a family”
– Ratan Tata
Concept Development and Testing
• The vision of Car affordability to middle class
family.
• To be built on a different platform than
conventional ones.
• Upgraded scooter on four wheels.
• Designed for the domestic as well as export
purpose.
• The car must be a beacon for the Indian
Automobile industry
 Marketing Strategy
 TATA will opt for cost-effective and innovative use of
media.
 Promotion with its multiple bank partners. These
financiers will promote the nano brand during
booking jointly with tata motors and on there own.
TATA team is working of nano news in papers,nano
breaks on radio, in form of messages or ticker and
nano conversation on facebook,orkut and blogspaces.
Also available will be a whole range of nano
merchandise like baseball caps,T-shirts and key-
chains, among others.
Why People should buy Tata Nano
 Low price. And people get all facilities in
affordable price.
 Attractive and available in many colours.
 Its 20% more spacious then other low price car in
India.
 After buying Nano, company serve all facilities
through his own service centre.
 Tata’s provide direct car loan facilities through
your nearest bank like SBI. United bank of India and
many more.
 “S.T.P”
• Segmentation: based on
Demographic: family size and income
Behavioral : benefit and user status
• Target market :
Executive two wheeler segment and middle
and low income group people
• Positioning:
TATA intending to place in the mind of the
consumers as People’s car.
 BUSINESS ANALYSIS AND PRODUCT DEVELOPMENT

COST
oSince the car had to be built within a cost of Rs. 1
Lac, no conventional design would work
oThe costs shall be higher
oSo the entire car has to be redesigned
 BUSINESS ANALYSIS
• The design must justify all component from the
point of view of necessity and minimum
requirements of functionality
• Disruptive Technology
 Significantly cheaper than existing Technology
 Is much higher performing
 Has greater functionality
 Is more convenient
 Brings to market a totally different Value proposition
• COST HAS TO BE MINIMIZED FOR EACH
COMPONENT YET MAINTAINING ITS BASIC
FUNCTIONALITY
 REDUCE CONSUMPTION OF MATERIAL BEING
USED.
 ALTERNATE SUPPLIERS TO GET SAME MATERIAL AT
FEWER PRICES.
 USE ALTERNATE MATERIALS.
 ELIMINATE USE OF MATERIAL
 The Cost Reduction Paradigm

• Within the given cost structure of 1 Lac all the

components have to be allocated a maximum price
• The Guiding factor: materials and manufacturing,
must support the final cost of Rs. 1 Lac
 Establish factory in a tax free zone.
 Get the tax advantages on infrastructure
development.
 Get the suppliers to establish base near the factory.
 Get special concessions from State Govt.
 TOTAL SALES ESTIMATION

• It was estimated that the demand for the car at least twice the
demand for Maruti 800.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.
• IF 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.
70,000
units
 PRODUCT LIFE CYCLE

• Introduction: Brand awareness by media.

Online booking facility
Established distribution networks.

• Growth : 70,000 units sold by volume ,In december 28 % of tata

motors sale came from Nano.
Brand Extension : the basic Std priced at 142,000
The deluxe Cx at 171,000 has air conditioning
The luxury Lx at 195,000 has air conditioning and power windows
Also includes Petrol and Diesel variants

• Maturity

• Decline
 TEST MARKETING
PHASE-1
Maharashtra,
Delhi
Gujarat,
Andhra Pradesh CUSTOMER FEED BACK
Madhya Pradesh

PHASE-2
Himachal Pradesh,
West Bengal,
Kerala, etc
 COMMERCIALIZATION
Standard-without A.C. Two types of variant cars
Deluxe-The Deluxe are available:
and Luxury variants Gasoline variant(G- Variant)
will get AC and body Electric Variant(E- Variant)
colored bumpers
Luxury-Luxury
Variants will also have
A.C.& power window
Thank you…