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Sales & Distribution of TATA NANO & Commercial Vehicles.

P.C.C.C.S.

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

P.C.C.C.S.

STUDY ON Sales & Distribution of Tata Nano & commercial Vehicles AT

TATA MOTORS PVT. LTD. SUBMITTED TO UNIVERSITY OF PUNE BACHELOR DEGREE IN BUSINESS ADMINISTRATION BY NIKHIL DATTATRYA TAMBE UNDER THE GUIDANCE OF PROF. ANAMIKA GHOSH

PRATIBHA COLLAGE OF Commerce & COMPUTER STUDIES CHINCHWAD, PUNE-19 2010-11

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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ACKNOWLEDGEMENT I would like to give sincere thanks to Mr. R. L.Utpath Sir, Senior Manager , Mr. Y K Jain Sir, Senior Manager Recovery and Mr. S K Saha Sir, Senior Manager and each member of Solapur District Central Co-op.Bank for their extreme help, self-guidance, cooperation and friendliness; they did it in one-way or other for successful completion of the project. My deep gratitude to Dr. Rajendra kankariya, the Principle of, Pratibha College of commerce & computer studies. Pune who always has been playing a great role in all round development of the student. I would like to put on record my thanks to my faculty project Guide Prof. Miss. Shweta Jain and I would also like to thank our HOD Miss. Anamika Ghosh & faculty member Miss Kshitija Ghandi, Miss. Archana Salve, Miss. Harshada Deshmukh and Miss Petriciya for their support and non teaching staff for their kind support, help and assistance, which they extended as and when required. Last but not the least I wish to thank my friends for providing technical and especially moral support.

I hope that this project report would meet the high standards of all concerned people. Date: (Nikhil Dattatrya Tambe)

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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DECLARATION

I, NIKHIL DATTA TRYA TAMBE, BBA-III (20010-11) at P.C.C.S, Chinchwad, Pune, hereby solemnly declare that project on Sales & Distribution of Tata Nano & commercial Vehicles was completed at The Pune TATA MOTERS Sehagal Auto Chinchwad, as a result of my research.

The project was undertaken as a part of academic curriculum, according to the University rules and with no commercial interest and motives. It is my original work and not submitted elsewhere for any other purpose earlier. The project report does not contain any fake information and data collected is Included in the project with prior permission of Manager at the TATA MOTERS Sehagal Auto Chinchwad.

Place:

Date: (Nikhil Dattatrya Tambe)

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

P.C.C.C.S.

OBJECT OF PROJECT.

As a part of the Curriculum of the BBA Programmed of the PUNE UNIVERSITY.I underwent my Training at TATA MOTERS Sehagal Auto Chinchwad.. The aim behind is to let the Students draw out the Difference & Similarities between the theoretical knowledge with the actual Job conditions, so they can be able to Pursue & Cultivate Strategic decisions making capabilities & establish themselves as capable Managers of tomorrow. To get an opportunity of observing the business. To be able to apply theoretical knowledge into practical in International Business Environment. To know how organization work. To get an opportunity to interact with dynamic managers and people at various levels in the organization and gain knowledge of their authorities & responsibilities. To get acquainted with real organizational problems, perceptions Challenges faced by business. To know & understand the career opportunities available in this sector. &

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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SELECTION OF TOPIC.

Objectives of the Study To understand the process international marketing. To understand the process and key pricing strategy. To study the Restricted Areas of International market. To analyses the performance of multinational company. To find out the causes of selection of Malaysia.

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact research is an art of scientific investigation. Another meaning of research as a careful investigation or inquiry specially through for new facts in any branch of knowledge. Redman and More define research as a systemized effort to gain new knowledge. Some people consider as movement a movement from the known to the unknown it is actually a voyage of discovery.

Data Sources: In the Preparation of this project it is necessity to collect the Primary data and Secondary data

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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Primary Data: The first-hand information bearing on any research which has been collected by the researcher may be called primary data. Collecting information various with the help of proposals credit policy of the Bank.

Secondary Data: The Secondary Data on the other hand, are based on second-hand information. The data which have been already been collected, compiled & presented easier by any agency may be used for the purpose of investigated such data may be called Secondary Data. Collecting the in formation with the help of Annual Reports, Magazines, Internet, and Reference Book. The Secondary data provide by organization. The needed information is collected from Journals Annual Reports, Magazines, etc.

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SCOPE OF THE STUDY The Indian Automobile Industry has come a long way since 1991 when it produced only two million automobiles. In 2006 it produced almost eleven million vehicles. The total number of cars produced in 1991 was 1,78,930 as opposed to 2006 where the total 10 production was 1.2 million. The total number of two wheelers in the same period increased from 1.6 million to 8.4 million. Between 2003-2007 the total number of cars produced grew from 770771 in 2003 to 1.2 million in 2006 and the two wheelers grew from 5.4 millions to 8.4 millions in the same period. The three-wheeler production also increased from 332095 to 5333595:

B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

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1.6 LIMITATIONS Following are the limitations for carrying out this project work. As the project was restricted for the period of two months, hence the data obtained may not be sufficient for interpretation.

The study was related to the Sales & Distribution of Tata Nano & commercial Vehicles.

The study was related to Credit Appraisal System for specifically Home Loan, so other Credit Appraisal System was not taken into consideration for the study.

The study is based on the past data & may not be true indicator of future performance.

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UTILITY OF PROJECT. The project study helped me to get the practical exposure to the International world. It also gave an opportunity & experience to collect data, analyses it and interpret it, which helped to develop my analytical skills. It helped me to gain knowledge about the how any multinational motor company launches any motor car in international market and why? This knowledge will be helpful to me for my career or even in other way. The project will help the bank to analyses its performance and to make necessary improvements.

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HYPOTHESIS: The following statements can be the statements for hypothesis are as follows:-

Why NANO Concept developed.

How NANO made a cheapest car

Why NANO is called as common people car?

Why NANO launches in Malaysia.

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Introduction Tata Motors Going Global

In early 2004, the mood at Tata Motors, earlier called Telco (Tata Engineering and Locomotive company) was distinctly optimistic. After a spectacular comeback in the past two years, Tata Motors was planning to expand the capacity of its Pune factory from 1.5 lakh cars to 2.5 lakh cars by December 2004, to meet the growing domestic and international demand for its products. This was the first major capital investment by the company since 1999, when it had invested Rs 1,800 crore to design and manufacture its small car, the Indica.

Just three years back, not many analysts believed such a transformation could happen. The company was reeling under the biggest ever loss in its 58-year corporate history. Following a whopping Rs 500 crore loss (in 2001), its stock price fell from Rs 564 in 1996 to Rs 59 in 2001.

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The recovery had been led by the remarkable success of its small car, the Indica. The larger and more recently introduced Indigo also seemed to be faring well. The Tatas had made major forays into global markets. The acquisition of Daewoos commercial vehicles division in Korea for $102 million, signaled the companys global intentions. There was a speculation that Tata Motors was ready to develop a new car that would take on Suzukis highly successful small car, the Maruti 800, which dominated the Indian roads.

Did the Tatas have the capabilities and resources needed to implement such ambitious plans? That was the question uppermost in the minds of analysts in mid-2004, notwithstanding the optimism of chairman Ratan Tata and his colleagues.

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Background Note The Tatas In 1868, Jamsetji Nusserwanji Tata, the founder of the Tata group, started a private trading firm in Bombay with a capital of Rs.21,000. His travels in the Far East and Europe inspired him to start manufacturing cotton goods. In 1874, the first Indian textile mill, The Central India Spinning, Weaving & Manufacturing Company, was established. In 1877, Jamsetji established the famous Empress Mill in Nagpur. And in the same year, Tata and Sons was set up. In 1886, Jamsetji launched the Swadeshi Mills to mark the beginning of a movement to popularize the use of indigenous goods in place of British goods.

Jamsetji foresaw the significance of the industrial revolution for India. He believed three basic ingredients were needed for progress: steel, hydroelectric power, and technical education. In 1900, Jamsetji got the approval for building a steel plant. In 1904, Jamsetji passed away in Germany, but his vision became a reality under his son, Dorabji Tata. The Tata Iron and Steel Company was set up in 1907, in Jamshedpur, in Bihar. In 1910, the Tata Hydro Electric Power Supply Company was established.

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In 1938, JRD Tata was appointed as the head of Tata group. One of Indias most respected business leaders, JRD guided the group for well over half a century. In 1956, he initiated a programme to facilitate greater participation of workers in the management of the company. Five core values - Integrity, Understanding, Excellence, Unity, and Responsibility directed the group's expansion. JRD succeeded in attracting and nurturing talented mangers who were empowered to manage individual businesses with considerable freedom.

Over time, the Tatas became a large, diversified business group with interests in metals, automobiles, energy, engineering, chemicals, consumer products, finance, international operations, information technology, and agri-industries. Since the mid-1990s, under the leadership of Ratan Tata (Tata), the group had restructured itself. Many business activities had been rationalized or divested. New blood had been brought in as the need for change was strongly felt in a liberalized environment. For Ratan Tata, automobiles were a strong passion. Within the Tata group, Tata Motors enjoyed a special place. Tata genuinely believed the company had in it to become a global player.

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The Formation of Tata Motors

The Telco saga began in 1948 when the Tatas acquired an Eastern Railway Workshop to build boilers and steam locomotives for the railways. Though Telco made 1,000 locomotives, the company did not make any profit in the first ten years. By then Sumant Moolgaokar, head of Telco, was desperately scouting for a foreign collaboration.

Shortly after World War II, when the German industry lay in tatters, hungry for business, Daimler-Benz looked eastward. It approached Telco with a proposal to manufacture diesel road transport vehicles. T.T. Krishnamachari, then industries minister, flagged off the project in 1954 on the undertaking that within four years, Telco would indigenise considerably, a commitment that was met by Telco. Thereafter, the company never looked back.

Until 1969, when the collaboration agreement ended, Jamshedpur became virtually a German town. It was widely believed that Tata Motors picked up its uncompromising standards of quality and meticulous engineering from Daimler

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Benz. Before the collaboration ended, Moolgaokar had succeeded in developing strong engineering capabilities within the organization.

The master plan to duplicate Jamshedpur began in 1966 when 800 acres of barren, rocky land was purchased in Pune. The facility became the testimony to Moolgaokars long term vision and ability to look years ahead into the future. Variously described as an "industrial jewel" and a "grand masterpiece", it epitomised Moolgaokars engineering philosophy: vertical integration, selfreliance, constant technical innovation, research and development.

The various assembly lines at the Pune plant were all supported under one roof by divisions that designed and manufactured state-of-the-art machine tools and press tools. The heart of the plant was what Moolgaokar considered as "the most sacred place" - the Engineering Research Centre (ERC). Moolgaokar had laid heavy emphasis on training

The first building to be constructed was indeed the training center. Every year, a quarter of the workforce acquired a higher skill. All promotions and increments were skill-related.

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In 1981, the Indian government declared its new policy of allowing broadbanding of licenses in the automobile industry. New firms could enter any segment while existing firms could introduce new models. A firm could change its product mix within its overall capacity. For example, a four-wheeler manufacturer could make cars, jeeps, and any type of commercial vehicles. Tata Motors utilized this opportunity to enter the light commercial vehicles (LCV) market. The company successfully withstood the onslaught of the Japanese and staked its credentials as a serious player.

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Ratan Tata takes charge Though a late entrant, the Tatas had long eyed a place in the passenger car market. These initiatives gained momentum under the leadership of Ratan Tata. Tata got involved in the passenger car project right from the time he joined the company, (then called Telco) in 1986 as deputy chairman. In 1988, Tata Motors introduced its pick-up truck model Tatamobile1 206. In hindsight, this was the turning point in Tata Motors history. The model failed to build volumes, but gave the company confidence in its design capabilities. The companys engineers realized a car was not far away. Tata Motors launched Tata Sierra2 in 1991, followed by Tata Estate3, in 1992. In 1994, Tata Motors launched a multi utility vehicle - Tata Sumo, and a full forward control, LCV LPT 709. In the same year, the company signed an agreement with Daimler-Benz to manufacture Mercedes Benz cars in India. Tata Motors launched the Tata Sumo deluxe in 1996 followed by the Tata Sierra Turbo in 1997. In 1998, the company launched Tata Safari, a sports utility vehicle.

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Management

Board of Directors Mr. Ratan N Tata (Chairman) Mr. Ravi Kant Dr. J J Irani Mr. Nusli N Wadia Mr. S M Palia Dr. R A Mashelkar Mr. Nasser Munjee Mr. Subodh Bhargava Mr. V K Jairath Mr. Ranendra Sen Dr. Ralf Speth Mr. Carl-Peter Forster Mr. P M Telang

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Senior Management Mr. Carl-Peter Forster Chief Executive Officer & Managing Director Mr. P M Telang Managing Director-India Operations

Mr. C Ramakrishnan Chief Financial Officer Mr. R Pisharody Mr. T Leverton Mr. S B Borwankar Mr. S Krishnan Mr. P Y Gurav Mr. Prabir Jha Mr P K Chobe Mr. Vikram Sinha Mr. B B Parekh Mr. U K Mishra President (Commercial Vehicles Business Unit) Head, Advanced and Product Engineering Sr. Vice President (Manufacturing Operations-CVBU) Sr. Vice President (Latin America-Operations) Sr. Vice President (Corp. Finance-Accounts and Taxation) Sr. Vice President, Human Resources Head (Jamshedpur - Plant) Head (Car Plant - PCBU) Chief (Strategic Sourcing) Vice President (ADD and Materials - CVBU)

Mr.A.Gajendragadkar Vice President (Corp. Finance-Business Planning) Mr. N Pinge Mr. R Bagga Chief Internal Auditor Vice President (Legal)

Mr. R Ramakrishnan Vice President - Sales & Marketing(CVBU)

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Sales & Distribution of TATA NANO & Commercial Vehicles. Mr. S Ravishankar Mr. Girish Wagh Mr. Atul Renavikar Vice President (Engg. Systems, ERC) Head (Small Car Project) Head (Pantnagar Plant)

P.C.C.C.S.

Company Secretary Mr. H K Sethna

Corporate Communications Mr. Debasis Ray Head - Corporate Communications

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Tata Nano The Tata Nano is a proposed city car a small, affordable, rearengine, four passenger car aimed primarily at the Indian market first presented by India's Tata Motors at the 9th annual Auto Expo on January 10, 2008, at Pragati Maidan in New Delhi, India Tata targets the vehicle as the least expensive production car in the world aiming for a starting price of 100,000 rupees or approximately $2300 US. Newsweek identifies the Nano as a part of a "new breed of 21st-century cars" that embody "a contrarian philosophy of smaller, lighter, cheaper" and portend a new era in inexpensive personal transportation and potentially, "global gridlock"..The Wall Street Journal confirms a global trend toward small cars, which includes the Nano The prefix "Nano" derives from the Greek root 'nanos', meaning dwarf as with nanometer. "Nano" also means "small" in Gujarati, the native language of the Tata family, founders of the Tata Group.

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Overview

The introduction of the Nano received media attention due to its targeted low price. The car is expected to boost the Indian Economy, create entrepreneurialopportunities across India, as well as expand the Indian car market by 65%. The car was envisioned by, Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an ecofriendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to mass-manufacture the Nano in large quantities, particularly the electric-version, and, besides selling them in India, to also export them world-wide. Critics of the car have questioned its safety in India (where reportedly 90,000 people are killed in road-accidents every year), and have also criticized the pollution that it would cause (including criticism by Nobel Peace Prizewinning scientist, Rajendra Pachaur). However, Tata Motors has promised that it would definitely release Nano's eco-friendly variants alongside the gasoline-variant. Due to opposition to Tata's Singur car-factory by Mamta Banerjee, Tata Motors decided to cease operations in Singur on 2 October 2008 and started manufacturing Tata Nano at its Pantnagar plant. On her protests and the

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consequent pullout, the media heavily ritcised her and The Telegraph even said: "India is being raped by those who profess to be her soldiers, the guardians of peace." Financial Times reported: "If ever there were a symbol of Indias ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the $2,200 (1,490, 1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity. That process has stalled...No big economy has prospered without undergoing a huge, often brutal, shift of labour from the countryside to cities and from farms to factories...There is a yawning gap with China. Indias information technology and service sector, no matter how dynamic, simply cannot absorb enough labour. To truly shine, India will need millions, perhaps tens of millions, more manufacturing jobs. Why has it not created them?" Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company is hoping to produce 50 Nanos per day in Pantnagar by JanuaryMarch 2009]. Ratan Tata has said that Nano will be brought within set timelines. Not many dealers will be appointed till March 2009. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 5,00,000 units, compared to 3,00,000 for Singur. Gujarat has also agreed to match all the incentives offered by West Bengal government.

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Conception and design

The project to create the world's cheapest production car began in 2003, under the Chairman of Tata Motors, Ratan Tata, inspired by the number of

Indian families with two-wheeled rather than four-wheeled transport. The Nano's development has been tempered by the company's success in producing the low cost 4 wheeled Ace truck in May 2005. Contrary to speculation that the car might be a simple four-wheeled auto rickshaw, The Times of India reported the vehicle is "a properly designed and built car". The Chairman is reported to have said, "It is not a car with plastic curtains or no roof it's a real car." To achieve its design parameters, Tata has refined the manufacturing process, emphasized innovation and sought new design approaches from suppliers. The car was designed at Italy's Institute of Development in Automotive Engineering with Ratan Tata requesting certain changes, such the elimination of one of two windscreen wipers. The Nano has 21% more interior space and an 8% smaller exterior, when compared with its closest rival, the Maruti 800. The car will come in different versions, including one standard and two deluxe variants. The deluxe version will have air conditioning, but no power steering. The car was expected to be produced in the Singur plant in West Bengal, but due to politicallymotivated agitations instigated by the Trinamool Congress, mother plant has

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been shifted to Sanand in Gujarat. The initial production target set by Tata Motors is 250,000 units per year.

Expectations

According to one report, India as well as other nations, such as European nations, have great expectations from the Nano and are keenly and eagerly awaiting it, especially the electric version of the Nano, which is expected to be released in 2008, making it in all probability the "world's cheapest electric car" officially on record. The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL.

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Pricing strategy

Tata initially targeted the vehicle as "the least expensive production car in the world" aiming for a starting price of 100,000 rupees or approximately $2050 US despite rapidly rising material prices.

As of August 2008, material costs have risen from 13% to 23% over the

with an artificially low price through govt-subsidies and taxbreaks, or

-integration, or

of a full metal-body, or

decrease demand.

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Release-date

As of 11 December 2008, Tata Motors has not yet announced any releasedate for the Nano and the future of the car remains uncertain, with some sources expecting it to be released in 2008 and others in 2009]. Currently, no orders for the car are being taken but it has been announced that Nano will be finally manufactured in Sanand and Pantnagar. Some sources expect Nano's electric- and gasoline-variants to be released in 2008], and the diesel-variant in late or mid-2009, though both dates remain uncertain due to lack of any official announcement.

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Effect on Indian Economy

Tata Nanos launch could expand the Indian car market by 65%, according to rating agency CRISIL. The low price makes the car affordable for families with incomes of Rs 1 lakh per annum, the agency said. The increase in the market is expected to push up car sales by 20% over the previous year. The unveiling of Tata Nano, the eapest car in the world, triggers an important event in the car market. Based on the statement by company officials, CRISIL Research estimates the consumer price of the car at aroundRs 1.3 lakh. This brings down the cost of ownership of an entry level car in India by 30%, the company said in a report.

Thus, the Indian Economy is expected to remain strong and grow in 2008 and beyond, despite the temporary financial turmoil in the US, because the car will also lead to a boost in other sectors of the Indian Economy besides the auto-market. However, due to the current Singur land dispute, the "Stalled Car Factory" is "Costing Jobs, Splitting Neighbors in West Bengal"

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Branding Brands identify the source or maker of a product and allow consumers either individuals or organisations to assign responsibility for its performance to a particular manufacturer or distributor. Branding is endowing products and services with the power of a brand. Its all about creating differences between products. For branding strategies to be successful and brand value to be created, consumers must be convinced there are meaningful differences among brands in the product or service category. In Tata Nanos case, the branding strategy used is corporate name combined with individual product names. This companys name legitimizes and the individual name individualizes the new product

Product Strategy The Tata Nano CX, including all the features described in the earlier Product Review section, will be sold with a three-year warranty or 100,000km warranty, whichever comes first. We will introduce the Tata Nano LX during the following year, after we have established our Tata brand. The brand and logo will be displayed on the car as well as in all marketing campaigns.

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MUMBAI/BANGALORE: In a trend setting move, Tata Motors, Indias largest automobile firm is hiving off its sales and distribution operations into a separate entity, as part of a restructuring exercise. The development comes at a time when the company is readying to launch the worlds ultra cheap Nano.

The new entity, TML Distribution Company, a wholly owned subsidiary of Tata Motors, will now take on the operations of sales, logistics and distribution of both commercial vehicles and passenger vehicles to its 200 odd dealers across the country.

Tata Motors is transferring approximately 100 people to TDCL, which is expected to start operations shortly. A source said that many factors have led Tata Motors to realign its business structure. It is looking to curtail its costs and one way to do that is through tierisation. Logistics requires specialized skills and greater attention; a separate entity also helps in unlocking value in the future. TDCL has been formed with a capital of Rs 25 crore.

When contacted a Tata Motors spokesperson said, Tata Motors' product portfolio, which already includes large volume vehicles, is being further expanded. Simultaneously new plants are being set up at Pant Nagar, Singur, and Dharwad, while capacities are being added at Pune, Jamshedpur and

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Lucknow.

The dealership network itself is being expanded. In line with the growth, breadth and reach required for the product portfolio and multi-locational operations, it is necessary to bring focus and greater efficiency in the selling and distribute on operations and processes.

It is speculated that new entity has the potential to become as big an entity like Tata Motors, considering TDCL will procure vehicles from Tata Motors and the sale will be reflected on books of TDCL.

It (new set up) will help improve planning, inventory management, transport management, on-time delivery, while harnessing cost synergies. Tata Motors and subsidiary will work together for sales plans, with the subsidiary procuring vehicles and selling them to dealers as per their orders, the spokesperson added..

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Tata Vehicles Sales and Distribution: Our sales and distribution network in India as of March 2009 comprised over 1,500 sales outlets for our passenger and commercial vehicle business. In line with our growth strategy, we formed a 100% subsidiary, TML Distribution Company Limited, or TDCL, in March 2008 to act as a dedicated logistics management company to support the sales and distribution operations of our vehicles in India. We believe this will improve the efficiency of our selling and distribution operations and processes. TDCL will take over and/or set up stocking points for both commercial vehicles and passenger vehicles, in the places of manufacture and also at different places throughout India. TDCL will help improve planning, inventory management, transport management and on-time delivery. As a focused entity, we believe it will make delivery and inventory management more efficient. Additionally, we have completed the initial rollout of a new customer relations management system, which has been certified by Oracle as the largest Siebel deployment in the automotive market at all our dealerships and offices across the country. Being implemented in phases since 2003, the combined online customer relations management system initiative supports users both within the Company and among our distributors in India and abroad.

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Through our vehicle financing division and wholly owned subsidiary, Tata Motors Finance Limited, or TMFL we also provide financing services to purchasers of our vehicles through our independent dealers, who act as our agents, and through our branch network. During fiscal 2008 and 2009, approximately 34% and 31%, respectively, of our vehicle unit sales in India were made by the dealers through financing arrangements where our captive vehicle financing divisions provided the credit. Total vehicle finance receivables outstanding as at March 31, 2009 and 2008 amounted to Rs.158,803 million and Rs.163,960 million, respectively. We use a network of service centers on highways and a toll-free customer assistance center to provide 24-hour on-road maintenance (including replacement of parts) to vehicle owners. We believe that the reach of our sales, service and maintenance network provides us with a significant advantage over our competitors. We also market our commercial and passenger vehicles in several countries in Europe, Africa, the Middle East, Australia, South East Asia and South Asia. We have a network of distributors in almost all of the countries where we export our vehicles, who work with us in appointing a local dealer for sales and servicing our product in various regions. We have also stationed overseas

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resident sales and service representatives in various countries to oversee our operations in their respective territories. Automobile major Tata Motors today said its total sales of Tata commercial and passenger vehicles in October this year were 64,757 vehicles, up 21 per cent from 53,404 vehicles sold in the same month of last year. According to a press release issued by the company, its domestic sales of Tata commercial and passenger vehicles for October 2010 were 58,807 numbers, a 16% growth over 50,552 numbers sold in October last year. Cumulative sales (including exports) for the company for the fiscal are 444,870 units, a growth of 50% over 296,354 units sold last year, it said. The companys sales of commercial vehicles in October 2010 in the domestic market were 34,329 nos., a 12% growth compared to 30,541 vehicles sold in October last year. Light commercial vehicles (LCV) sales were 20,689 nos., a growth of 11% over October last year. Medium and heavy commercial vehicles (M&HCV) sales stood at 13,640 nos., a growth of 14% over October last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal are 238,571 nos., a growth of 48% over last year. Cumulative LCV sales are 136,031 nos., a growth of 36% over last year, while M&HCV sales stood at 102,540 nos., a growth of 67% over last year, the release said.

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According to it, the passenger vehicles business reported a total sale and distribution offtake of 26,503 nos. (24,478 Tata + 2,025 Fiat) in the domestic market in October 2010, a 19% increase compared to 22,232 nos. (20,011 Tata + 2,221 Fiat) in October last year. Sales of Tata passenger vehicles are 24,478 nos., a growth of 22% over October 2009. Sales of the Tata Nano were 3,065 nos., higher by 2% over October last year. The Indica range sales were 9,732 nos., higher by 1% over October last year. The Indigo range recorded sales of 8,292 nos., a growth of 69% over October last year. The Sumo/ Safari/ Aria range accounted for sales of 3,389 nos., higher by 38% over October last year. Jaguar Land Rover sales continued their upward trend, the release said. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 187,539 nos. (173,651 Tata + 13,888 Fiat), against 133,693 nos. (118,579 Tata + 15,114 Fiat) last year, a growth of 40%. Cumulative sales of Tata passenger vehicles were 173,651 nos., a 46% increase compared to 118,579 nos., in October last year. Cumulative sales of the Nano are 40,467 nos., a 285% increase compared to 10,518 nos., in October last year.

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Cumulative sales of the Indica range are 58,634 nos., lower by 12%. Cumulative sales of the Indigo family are 52,063 nos., higher by 123%. Cumulative sales of the Sumo/Safari/ Aria range are 22,487 nos., higher by 24%. The company's sales from exports at 5,950 vehicles in October 2010 registered a growth of 109% compared to 2,852 vehicles in October last year. The cumulative sales from exports for the fiscal at 32,648 nos. are higher by 103% over 16,075 nos. in the same period last year, the release added. Figures from Tata Motors have also rolled in. The company has sold a total of 65,938 units compared to 49,810 units sold in the same month last year resulting in a YOY growth of 32%. Cumulative sales (including exports) for the company for the fiscal are 315,445 nos., a growth of 43% over 220,978 nos. sold last year. The passenger vehicles business reported a total sale and distribution offtake of 27,008 units (25,196 Tata + 1,812 Fiat) in the domestic market in August 2010, a 34% increase compared to 20,146 nos. (17,364 Tata + 2,782 Fiat) in August last year. Sales of Tata passenger vehicles are 25,196 units, a growth of 45% over August 2009. Sales of the Tata Nano were 8103 units, higher by 224% over August last

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year. The Indica range sales were 7,531 units, lower by 22% over August last year. The Indigo range recorded sales of 6,678 units, a growth of 151% over August last year. The Sumo/Safari range accounted for sales of 2,884 nos., higher by 11% over August last year. Jaguar Land Rover sales continued their upward trend. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 135,509 units (125,296 Tata + 10,213 Fiat), against 90,718 units (80,392 Tata + 10,326 Fiat) last year, a growth of 49%. Cumulative sales of Tata passenger vehicles were 125,296 units, a 56% increase compared to 80,392 units, last year. Cumulative sales of the Nano are 31,882 units, a 541% increase. Cumulative sales of the Indica range are 42,644 units, lower by 9%. Cumulative sales of the Indigo family are 34,988 units, higher by 132%. Cumulative sales of the Sumo/Safari range are 15,782 units, higher by 18%.

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Tata Motor Company sales, Tata Group of Industries The story of Tata begins in 1868 when a young boy named Jamsetji Tata joined his father's small trading company. Thirty-five years later, that same boy was the owner of India's largest textile company, Tata Textile. Over the last century, Tata has excelled in many different business sectors including Materials (Steel and Mining), Agriculture, Energy, Consumer Products, Information Technology, Consultancy, Finance, Automobiles, Chemicals, Engineering and Hospitality. Tata Group of Industries reported $17.6 billion in revenues in 2005, which is equivalent to 2.8 percent of India's GDP. In 2006, it is projecting its annual revenue to be around $24

billion. Figure 1 shows the breakdown of Tata's revenues for the fiscal year 2004-05 between the separate business sectors and how much it contributed to Tata as a whole. Tata is one of the world's largest employers, and is the largest private employer in India with about 222,000 employees. many as a very Is this Essay helpful? Join OPPapers to read more and access more than 325,000 just like it! get better grades diverse country; there are 26 states in India and the culture of each is extremely different from the others in language and lifestyle. This diverse culture within India makes Tata's human resources India is known to

department work to lead major changes across the vastly different cultures of

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the employees that exist within Tata as a whole group. Tata's management training center located in Pune serves as a corporate school to help Tata's managers learn how to lead such a diverse workforce.

National Culture of India There are several issues that need to be addressed before entering a new country expecting to maximize profits. One such issue is the culture of the country where the firm wants to enter, as there are many differences in the culture of business practices and the way things are generally done. Doing business internationally is affected by the way a society functions on the macro level with factors including the size of economy, wealth of the citizens, religion, race, etc. There... Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in December 2010 were 67,441 vehicles, a growth of 31% over 51,627 vehicles sold in December 2009. Interestingly, overcoming its sales decline in the past months, Nano, the cheapest car in the world, registered 60% growth in December 2010 by selling 5,784 units as compared to the sales figures of the same period last year. The sudden leap in Nano sales is because of the discounts and sops including extending warranty and easy finance offered by Tata following the steep decline in the small cars sales due to safety concerns. The domestic sales of Tatas commercial and passenger vehicles for December 2010 were 61,632 units, 28% growth over 48,173 vehicles sold in December

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last year. Cumulative sales (including exports) for the company for the fiscal are 566,933 nos., a growth of 31% over 432,630 nos. sold last year.

The companys sales of commercial vehicles in December 2010 in the domestic market were 41,926 nos., a 25% growth compared to 33,519 vehicles sold in December last year. LCV sales were 24,558 nos., a growth of 35% over December last year, with the highest ever monthly sales of the Ace family. M&HCV sales stood at 17,368 nos., a growth of 14% over December last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal are 315,576 nos., a growth of 24% over last year. Cumulative LCV sales are 180,965 nos., a growth of 17% over last year, while M&HCV sales stood at 134,611 nos., a growth of 33% over last year. The passenger vehicles business reported a total sale and distribution off take of 19,977 nos. (19,706 Tata + 271 Fiat) in the domestic market in December 2010, higher by 28% compared to 15,661 nos. (14,654 Tata + 1,007 Fiat) in December last year. Sales of Tata passenger vehicles are 19,706 nos., higher by 34% over December 2009. Sales of the Tata Nano were 5,784 nos., higher by 60% over December last year. Industry experts say that the discounts and sops offered to Nano found

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takers after the sales of the worlds cheapest car touched lows in the previous months. Nano sales nose-dived on safety concerns following some incidents of the car catching fire in various parts of the country. Tata swung into action by extending warranty period to four years and making available easy loans to promote Nano sales. The Indica range sales were 5,923 nos., higher by 40% over December last year. The Indigo range recorded sales of 5,234 nos., a growth of 3% over December last year. The Sumo/ Safari/ Aria range accounted for sales of 2,765 nos., higher by 62% over December last year. Jaguar Land Rover sales continued their upward trend. Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 223,881 nos. (208,697 Tata + 15,184 Fiat), against 172,004 nos. (153,939 Tata + 18,065 Fiat) last year, a growth of 30%. Cumulative sales of Tata passenger vehicles were 208,697 nos., a 36% increase compared to 153,939 nos., in December last year. Cumulative sales of the Nano are 46,760 nos., a 167% increase compared to 17,534 nos., in December last year. Cumulative sales of the Indica range are 70,273 nos., lower by 12%. Cumulative sales of the Indigo family are 63,306 nos., higher by 84%. Cumulative sales of the Sumo/Safari/ Aria range are 28,358 nos., higher by 28%.

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Exports The companys sales from exports at 5,809 vehicles in December 2010 registered a growth of 68% compared to 3,454 vehicles in December last year. The cumulative sales from exports for the fiscal at 42,660 nos. are higher by 81% over 23,523 nos. in the same period last year.

November 01, 2010 Tata Motors October sales at 64,757 vehicles Mumbai: Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in October 2010 were 64,757 vehicles, a growth of 21 per cent over 53,404 vehicles sold in October 2009. The companys domestic sales of Tata commercial and passenger vehicles for October 2010 were 58,807 vehicles, a 16-per-cent growth over 50,552 sold in October last year.

Cumulative sales (including exports) for the company for the fiscal are 444,870 vehicles, a growth of 50 per cent over 296,354 vehicles sold last year.

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Commercial vehicles. The companys sales of commercial vehicles in October 2010 in the domestic market were 34,329 vehicles, a 12-per-cent growth compared to 30,541 vehicles sold in October last year. Light commercial vehicles (LCV) sales were 20,689 vehicles, a growth of 11 per cent over October last year. Medium and heavy commercial vehicles (M-and-HCV) sales stood at 13,640 vehicles, a growth of 14 per cent over October last year.

Cumulative sales of commercial vehicles in the domestic market for the fiscal are 238,571 vehicles, a growth of 48 per cent over last year. Cumulative LCV sales are 136,031, a growth of 36 per cent over last year, while M-and-HCV sales stood at 102,540 vehicles, a growth of 67 per cent over last year.

Passenger vehicles. The passenger vehicles business reported a total sales and distribution offtake of 26,503 vehicles (24,478 Tata + 2,025 Fiat) in the domestic market in October 2010, a 19 per cent increase compared to 22,232 vehicles (20,011 Tata + 2,221 Fiat) in October last year. Sales of Tata passenger vehicles are 24,478 vehicles, a growth of 22 per cent over October 2009. Sales of the Tata Nano were 3,065 vehicles, higher by two per cent over October last year. The Indica range sales were 9,732 vehicles, higher by one per cent over October last year. The Indigo

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range recorded sales of 8,292 vehicles, a growth of 69 per cent over October last year. The Sumo / Safari / Aria range accounted for sales of 3,389 vehicles, higher by 38 per cent over October last year.

Jaguar Land Rover sales continued their upward trend.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 187,539 vehicles (173,651 Tata + 13,888 Fiat), against 133,693 vehicles (118,579 Tata + 15,114 Fiat) last year, a growth of 40 per cent. Cumulative sales of Tata passenger vehicles were 173,651 vehicles, a 46per-cent increase compared to 118,579 vehicles, in October last year. Cumulative sales of the Nano are 40,467 vehicles, a 285-per-cent increase compared to 10,518 vehicles, in October last year. Cumulative sales of the Indica range are 58,634 vehicles, lower by 12 per cent. Cumulative sales of the Indigo family are 52,063 vehicles, higher by 123 per cent. Cumulative sales of the Sumo / Safari / Aria range are 22,487 vehicles, higher by 24 per cent.

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Exports The company's sales from exports at 5,950 vehicles in October 2010 registered a growth of 109 per cent compared to 2,852 vehicles in October last year. The cumulative sales from exports for the fiscal at 32,648 vehicles are higher by 103 per cent over 16,075 vehicles in the same period last year.

Tata Motors December sales at 67,441 Nos 2011-01-01 by Tata Motors Press Release Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in December 2010 were 67,441 vehicles, a growth of 31% over 51,627 vehicles sold in December 2009. The companys domestic sales of Tata commercial and passenger vehicles for December 2010 were 61,632 nos., 28% growth over 48,173 nos. sold in December last year.

Cumulative sales (including exports) for the company for the fiscal are 566,933 nos., a growth of 31% over 432,630 nos. sold last year.

commercial vehicles The companys sales of commercial vehicles in December 2010 in the domestic market were 41,926 nos., a 25% growth compared to 33,519 vehicles sold in

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December last year. LCV sales were 24,558 nos., a growth of 35% over December last year, with the highest ever monthly sales of the Ace family. M&HCV sales stood at 17,368 nos., a growth of 14% over December last year.

Cumulative sales of commercial vehicles in the domestic market for the fiscal are 315,576 nos., a growth of 24% over last year. Cumulative LCV sales are 180,965 nos., a growth of 17% over last year, while M&HCV sales stood at 134,611 nos., a growth of 33% over last year.

Passenger vehicles. The passenger vehicles business reported a total sale and distribution offtake of 19,977 nos. (19,706 Tata + 271 Fiat) in the domestic market in December 2010, higher by 28% compared to 15,661 nos. (14,654 Tata + 1,007 Fiat) in December last year. Sales of Tata passenger vehicles are 19,706 nos., higher by 34% over December 2009. Sales of the Tata Nano were 5,784 nos., higher by 60% over December last year. The Indica range sales were 5,923 nos., higher by 40% over December last year. The Indigo range recorded sales of 5,234 nos., a growth of 3% over December last year. The Sumo/ Safari/ Aria range accounted for sales of 2,765 nos., higher by 62% over December last year.

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Jaguar

Land

Rover

sales

continued

their

upward

trend.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 223,881 nos. (208,697 Tata + 15,184 Fiat), against 172,004 nos. (153,939 Tata + 18,065 Fiat) last year, a growth of 30%. Cumulative sales of Tata passenger vehicles were 208,697 nos., a 36% increase compared to 153,939 nos., in December last year. Cumulative sales of the Nano are 46,760 nos., a 167% increase compared to 17,534 nos., in December last year. Cumulative sales of the Indica range are 70,273 nos., lower by 12%. Cumulative sales of the Indigo family are 63,306 nos., higher by 84%. Cumulative sales of the Sumo/Safari/ Aria range are 28,358 nos., higher by 28%.

Exports The company's sales from exports at 5,809 vehicles in December 2010 registered a growth of 68% compared to 3,454 vehicles in December last year. The cumulative sales from exports for the fiscal at 42,660 nos. are higher by 81% over 23,523 nos. in the same period last year.

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ATA motor's domestic sales of Tata commercial and passenger vehicles for January 2010 were 62,202 nos., a 74 % growth over 35,704 nos. sold in January last year.

Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in January 2010 were 65,478 vehicles, a growth of 77% over 36,931 vehicles sold in January 2009. The companys domestic sales of Tata commercial and passenger vehicles for January 2010 were 62,202 nos., a 74 % growth over 35,704 nos. sold in January last year. Cumulative sales (including exports) for the company for the fiscal at 498,108 nos., recorded a growth of 24 % over 400,284 nos. sold last year.

Commercial Vehicles: The companys sales of commercial vehicles in January 2010 in the domestic market were 35,957 nos., the second highest ever and a 107% growth compared to 17,373 vehicles sold in January last year. LCV sales were 20,255 nos., the highest ever and a growth of 75% over January last year. M&HCV sales stood at 15,702 nos., a growth of 170% over January last year. Cumulative sales of commercial vehicles in the domestic market for the fiscal are 291,125 nos., a growth of 37% over last year. Cumulative LCV sales are 174,276 nos., a growth of 45% over last year, while M&HCV sales stood at 116,849 nos., a growth of 26% over last year.

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Passenger Vehicles: The passenger vehicles business reported a total sale and distribution offtake of 28,547 nos. (26,245 Tata + 2,302 Fiat) in the domestic market in January 2010, the highest ever and a 43% increase compared to 19,911 nos. (18,331 Tata + 1,580 Fiat) in January last year. Sales of Tata cars, at 22,707 nos. are the highest ever and a growth of 47% over January 2009. Sales of the Tata Nano were 4,001 nos. [/FONT]

[FONT=arial,helvetica,sans-serif]The Indica range sales were 11,448 nos., the highest this fiscal though flat over January last year. The Indigo range recorded sales of 7,258 nos., the highest ever since the Indigos launch in 2002 and a growth of 83% over January last year. The Sumo/Safari range accounted for sales of 3,538 nos., the highest this fiscal and a growth of 21% over January last year

Jaguar Land Rover sales continued their upward trend since launch in June with their highest sales in January.

Cumulative sales and distribution offtake of passenger vehicles in the domestic market for the fiscal are 200,573 nos. (180,184 Tata + 20,389 Fiat), against 162,425 nos. (157,439 Tata + 4,986 Fiat) last year, a growth of 23%. Cumulative sales of the Nano are 21,535 nos. Cumulative sales of the Indica range at 91,295 nos., reported a growth of 6%. Cumulative sales of the Indigo

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family are 41,724 nos., higher by 3%, coming into the positive territory for the first time this fiscal based on the growing acceptance of the newly launched Indigo Manza. Cumulative sales of the Sumo/Safari range are 25,630 nos., lower by 17%.

The company's sales from exports at 3,276 vehicles in January 2010 registered a growth of 167% compared to 1,227 vehicles in January last year. The cumulative sales from exports for the fiscal at 26,799 nos. are lower by 12% over 30,293 nos. in the same period last year.

coustomers Area dealers state wise dealers ware house

production

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1. LIST OUT THE STRATEGIES FOLLOWED BY TATAS FOR THE LAUNCH OF THEIR NEW VENTURE OF NANO. SALES STRATEGY: In the run-up to the much-awaited commercial launch of Nano, Tata Motors has put in place its sales strategy for Nano. In the last one month alone the company has tied up with a dozen public sector banks to finance its range of passenger cars. As most of the prospective Nano buyers, middle and lower middle income groups, live in semi-urban and rural India where PSU banks have greater presence this move will pay rich dividends. A few weeks earlier, Tata Motors dealers were asked to conduct local surveys to gauge the sales prospects and to increase staff strength to deal with the huge customer response. We have created an exclusive Nano sales team. We have a sales manager and four field executives exclusively for Nano, said a dealer. Expecting huge customer demand, way above what it can meet in the near term, the company has entered into an exclusive tie-up with State Bank of India to manage the booking process. There is a 15-day window for booking the Nano, from April 9-25. The application forms will be sold at over 30,000 locations and in about 1,000 cities through Tata Motors dealerships, SBI branches, other

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preferred financiers as well as outlets of Westside, Croma, the World of Titan and Tata Indicom exclusive stores. In addition, the company offers an option to submit bookings online at www.tatanano.com. The first one lakh customers will be chosen through a computerized random selection method. The marketing of the Nano will see a wide range of merchandise that no Indian car in the recent history has seen. The company is ready with a Nano phone, Nano watches as well as T-shirts which will be available at dealerships and Croma and Westside outlets. The idea is to create a buzz for the car all around. While micro-targeting Nano customers, Tata Motors could well have a problem of handling multiple target groups. We have got response from a wide range of sections. It is actually breaking all class barriers, age, gender and psychographic profiles, said Ravi Kant, Managing Director, Tata Motors, at the launch. The company has adopted a tagline Tata Nano: Now within Reach, indicating the affordability of the car as well as the fact that its finally arrived. Tata Motors ad agency Reinfusion Y&R and media agency Lodestar are responsible for Nanos communication campaign and advertising. The emphasis is clearly on print media, especially the regional language press, and radio to reach out to the masses. A double-spread ad announcing Now we can, quite similar to Barack Obamas presidential campaign which struck a chord with the US voting public, is already out.

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Unlike a classical product launch, Nano has got so much unpaid coverage. In normal media buying terms the unpaid coverage for the launch day would be worth Rs 100 crore. Going forward, we would be using different forms of communication at different stages. Online is a fairly big medium for us, says Mahesh Chauhan, Group CEO, Rediffusion Y&R. And, a more subtle strategy is to make Nano part of everyday lingo through word-of-mouth publicity. Newspapers are now calling brief news items nano news and news anchors on television say We will come back after a nano break, says Rajiv Dube, President, Passenger Car, Tata Motors. Nano is not just a disruptive innovation in manufacturing. The way it is marketed is equally innovative. No other car might have generated such a huge customer interest online as well as offline the way Nano has generated, says Mohit Dubey, Managing Director of the online car portal Carwale. Clearly, the little car will have to live up to some big expectations of it.

PROMOTIONAL STRATEGIES: Tata Motors is all set to launch its dream car, Tata Nano. Though till now the official launch date has not been disclosed, it is speculated to be launch on March 3.

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It is believed that 3rd March is the birth anniversary of the Tata groups founder Jamsetji Tata. It is also said that initially Nano will be sold to selected customers comprising celebrities, sportspersons, and leading politicians. This initiative is taken by the car manufacturer to re-create the lost hype and excitement of the worlds cheapest car.

Tata desires to make the Nano launch a grand, memorable, and historic celebration so that the company can erase the negative publicity it got in the world media due to land disputes over the Nano project. Its not the dispute that created a bad image but the delay of Nano launch that affected the company the most.

Though the mass production of the car will take some time as the manufacturing facility at Sanand near Ahmedabad is still under development, the company is gearing up to roll out small numbers from its facility in Pantnagar (Uttarakhand) and Pune.

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Skilled officials of the company have completed field trials of the Nano in the Kumaon hill, Uttarakhand. The factory-fresh Nanos are also being driven to various religious places to seek divine blessings. Ratan Tata has instructed his officials to take the Nano to all significant shrines across the country before the car hits the road.

Meanwhile, Tata Motors is also redefining its marketing and promotional strategies. The company has already signed a partnership with State Bank of India for booking Nano and is now finalizing its loan strategy.

The booking amount for Nano is Rs. 70,000. Initially, the company would take bookings of just one lakh cars as in the present production facility only 3,000 cars a month are likely to be manufactured.

MARKETING STRATEGY: The Nanos overall marketing strategy will use conventional media in an unconventional manner. Unlike most small cars, Nano won't be big on advertising. There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. The Tata team is working on Nano news

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in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chat rooms on the Net, Nano popups on major websites and Nano conversation on Facebook, Orkut and blog spaces Tatanano.com

Tata has launched an online community based marketing effort to generate pre launch buzz about Tata Nano and build a community around its brand. Tata Nano is touted as the peoples car and building up on that platform Tata has launched a website named www.tatanano.com to direct to an intrinsically social media driven website for the Tata Nano hosted on Tata Motors sub domain. The website features a

Blog A forum which already has 12000 members A dream car configurator which allows you to play with Tata Nano's design and create your own design.

Booking Nano online,

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You can "build" your Nano on the company website, which means that you can select the color, decals, wheels, fog lamps, seat covers, and dashboard.

Along with this, there are features like free downloads, contests, and so on.

Tata seems to be actively engaging people by also discussing the ideas being generated in forum including the idea of actually selling the car online. Using this Tata can also actually gauge international interest in Nano Market Research using website:

If you want to design an innovative distribution/marketing strategy, but are not sure of your customers would react to it what will you do? How do you reach out to your customers at the lowest cost, and in the most effective manner to get fair idea of their reaction? If you are Tata Nano then you would simply, bring this idea on your own personal website, and ask your to-be customers to leave in their comments about the proposed idea. And Voila! U have your market research done at 0 costs. Marketing Head of Tata Motors, monitored the comments posted on the Tata Nano website, an found the interesting concept of online selling of cars put

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forth by one of the viewers. Conventional automobile wisdom says that if a car dealer is any way required to complete the transaction, a web based option is a mere information window. It can never really be an alternative to a 'brick-andmortar' dealer. So how to gauze the customer response to this idea. The marketing head took forth this point on the Tata Nano website, and asked others to comment on it. Result of this was:

People from all walks of life ranging from businessmen to farmers, and from city dwellers to rural villagers came forth with their views.

The comments posted by the customers ranged from enthusiastic acceptance of this idea to a complete denial of the same.

Some customers even mentioned the areas where Tat would need to exercise caution before undertaking such an initiative.

All in all it was a wonderful demonstration of using customers as a sounding base for new ideas.

Thus, the Tata Nano has a strong online presence and its novel website is just adding to it.

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Sales & Distribution of TATA NANO & Commercial Vehicles.

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Social Networking Ratan Tata has worked out a viral marketing strategy to promote the Nano at the lowest cost.The social networking era has become a great aid for the Tata Motors' Nano sale buzz to flourish in the online world. The Nano campaign, prior to its release, has been intensified through its extension to networking sites like Facebook and Orkut making the 'world's cheapest car' known to a larger mass. Tata is using social networking sites Facebook and Orkut to help build up a network of prospective customers to virally market the small car.

While the official Tata Nano Facebook profile counts 4,210 fans as its members including Vismaya Firodia Bakshi, younger daughter of Kinetic group chairman Arun Firodia, and Vishal Gondal, CEO of Indiagames

The Orkut site lists 6,906 members.

Tata Nano on Facebook Tata Motors' sales push on social networking sites makes for smart marketing even with India's low levels of Internet penetration. Given that half of India's online population of some 50 million users is touched by social media platforms.

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B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

P.C.C.C.S.

Problem with use of social networking:

The only challenge that the social networking can trigger is the miscommunication of facts.

Information on prices and features of the product if miss communicated could kill the product itself.

There are several Facebook groups from several countries in the Americas and elsewhere, who are Nano fans. There will also be a Nano online game; a Nano portal already has received 30 million hits, according to Kant. Search engines will soon have Nano pop-ups encouraging consumers to buy. Blogs While Orkut and Facebook are quite ubiquitous when it comes to social media strategies these days, however, media sharing and blogs certainly are more active setups compared to networking as seen from the above example. The discussion on these blogs ranged from various issues ranging from how the cost worked out, to the safety of the car to the markets that it can tap into. Even YouTube videos are filled with comments on these matters.

Highest View Count on YouTube - 303,006

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B.B.A. Sem -VI (Marketing)

Sales & Distribution of TATA NANO & Commercial Vehicles.

P.C.C.C.S.

No. of Blog Posts - 61,664

The Nanos overall marketing strategy will use conventional media in an unconventional manner. Unlike most small cars, Nano wont be big on advertising. There will be no TV campaign, only innovative use of print, radio and other media, particularly the web. The Tata team is working on Nano news in papers, Nano breaks on radio, Nano appearing in the form of messages or ticker news on TV, online Nano games, Nano chat rooms on the Net, Nano popups on major websites and Nano conversation on Facebook, Orkut and blog spaces. In any case, the online buzz is enough to point out the brand that Tata has already built with this product; the buzz has caught the attention of even regular people in international markets if the forum topics on the official online communities are to be believed. To their credit Tata has handled these touch points pretty well by being active on them. In fact they also have a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community. This reliance on the online media also will make their advertising budget come low.

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B.B.A. Sem -VI (Marketing)

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