Tata nano…NANOThe ONE lakh that car drives ONE billion dreams…

contentsIdea GenerationProduct SpecificationProduct FeaturesSWOTSTPPricingPromotionPost purchase serviceFuture2020bibliography

Idea generation“I saw families riding around on scooters with kids standing up and the mother carrying a baby and sitting pillion and decided to do something about it. It started as a quest for an affordable transportation solution”. RATAN TATA source:- Business standard

Tata Nano: Specifications Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan

Micra and the Smart.Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres

high. Can seat four to five peopleEngine: A two cylinder 623 cc, 35 horsepower rear mounted, all

aluminium, multi-point fuel injection petrol engine can power the car to top speeds of 105 kilometres per hour (65 miles per hour).

Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.Pollution: Exceeds Indian regulatory requirements and can meet strict Euro

IV emission standards. In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currently

specification……Safety: Car exceeds current regulatory requirements with a strong

passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.

Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable whose base model sells for about 4,800 dollars -- nearly double the price of the Nano

Nearest International Rival: China's Chery QQ which retails for 3,600 dollars.

Market: India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.

Product Features• Length:- 3.1 mtr• Wide:- 1.5 mtr• Height:- 1.6 mtr• Weight:- 600 Kg• Mileage:- 20 Kmpl• Fuel tank:- 15 Ltr• Engine:- 624 cc• Top speed:- 95-100

Kph• Ground clearance:-

180 mm• Gear box:- 4-speed

COMPARISON TO ITS NEAREST RIVALS

Brand Model Variant Enginecylinde

r

CC power AC Price(Lakhs

)

TATA NANO BASIC 2 623 35 NO 1.3

TATA INDICA XETA GLE 4 1193 65.3 YES 2.82

MARUTI 800 STANDARD

3 796 37 NO 1.86

MARUTI OMNI PETROL 3 796 47 NO 2.23

MARUTI ALTO STANDARD

3 796 35 NO 2.26

HYUNDAI SANTRO

GL 4 1086 62 NO 2.21

CHEVROLET

SPARK STANDARD

4 995 63 YES 2.61

SWOT analysisSTRENGTH Price, mileage, style, brand name,

all weather vehicle, first innovation.

WEAKNESS Fiber body, low suspension power, low engine capacity, light vehicle, not suitable for hilly areas, delay due to singur violation.

OPPORTUNITY Bikers can be motivated, auto rickshaw & second hand market can be motivated.

THREAT Other competitors (Bajaj, Maruti , Tara tiny) not eco-friendly, Govt. may come with new rule.

S T P Segmentation :Variable Used Geographic: rural and urban Demographic: family size & income. Behavioral: benefit & user status. Target Market: Executive two wheeler segment,

second hand car user, auto rickshaw market, middle and lower income group people.

Positioning: TATA intending to place in the mind of the consumers as a people’s car.

Strategic options: Undifferentiated marketing.

PRICING STRATEGY Though the one lakh price tag is not fixed by TATA

group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company. To accept this challenge the following strategies are followed:-

• Target costing method• Penetration pricing• Low pricing policy with minimum profit margin.

Promotion activitiesEnough use of one of the most important element of

promotion mix , publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:-

• Publicity as “One lakh car” by mouth to mouth.• Auto expo 2008,New Delhi & Geneva• Publicity through print & electronic media• Singur violation.

Promotion activities….For other type of promotional activities ,cost factor that is 1

lakh price tag is to be keep in mind, TATA is going to launch its nano mobile for indicom user, nano watches , nano T-shirts available in Westside stores .

Advertising:- TV & other mass media will be less effective, thus too much money will not be invested in this regard . Mainly word of mouth advertising will get more emphasis.

Internet will be a major media for advertising.

Promotion activities….Online buzz:-Nano has gone beyond the traditional methods

of advertising and promotion online .Social Media communities:-Official Orkut community Members - 6,906. Official Facebook Group Fans - 4,210 Highest View Count on You Tube- 303,006 (it was

just under 3,00,000 when I began writing this post)

No. of Blog Posts - 61,664 TATA have a blog on the official website where

they have been discussing quite interesting topics and generally maintaining an active community.

distribution• So far we know TATA, it’s business has been extended to the

overseas i.e. to the Europe, Africa, U.S & Australia.• Hence it has n-number of showrooms in India & outside of

India.• The exclusive showrooms are the best distribution channels

for TATA itself.

Post purchase service• As Tata is going to provide this car with rupees one lakh only,

so it may not give the same service like it’s other vehicles. • But it’s post purchase services will be better than a costlier

bike.• Customers may get minimum three services from Tata in any

of it’s servicing center, all over the country.• We the future customers, can also hope for additional services

from TATA group.

Nano story 2020….

Nano story 2020….

Nano story 2020….

Nano story 2020….

THANK YOU

NEERAJ KUMARIM-2K5-30ZEESHAAN IM-2K5-63