PROJECT REPORT ON

SUBMITTED BY:

WILLIAM MICHAEL (REG.NO.3510910931)

MD.ZAHID HASSAN(REG.NO.3510910936)

M. Pallavi(REG.NO. 3510940123)
INTRODUCTION :

◦ Market: People or institutions with sufficient

purchasing power, authority, and willingness to buy
◦ Target market: Specific segment of consumers most
likely to purchase a particular product

MARKET TARGETING OF TATA NANO:

The low-cost car is clearly intended for the masses.For the family of four that
would otherwise ride on a scooter,It also attracts the small cars buyers like Maruti
800, bike riders etc.
 Executive two wheeler people – people who are working professionals but
can not afford to buy a three lakh car which is the average cost of a small car in
India
 Second hand car user – those people that can not afford to buy a new car.
Now they will be able to buy a new car cheaper then they buy a used car for.
 Auto rickshaw market – most of the Auto rickshaws also cost same as the
price of Nano. This may help the Nano to replace them as well
 Middle and lower income group people – these are the people that are
growing and are becoming a little richer which is making them afford a car

Tata Motors Limited:

 Tata Motors Limited, formerly known as TELCO (TATA Engineering
and Locomotive Company), is a multinational corporation headquartered in
Mumbai, India. It is India's largest passenger automobile and commercial
vehicle manufacturing company. Part of the Tata Group, and one of the
world's largest manufacturers of commercial vehicles. The OICA ranked it
as the world's 20th largest automaker, based on figures for 2006.

 Tata Motors has its manufacturing base in Jamshedpur, Pantnagar,

Lucknow, Pune.

 Tata Motors was established in 1945, when the company began

manufacturing locomotives. The company manufactured its first commercial
vehicle in 1954 in collaboration with Daimler-Benz AG, which ended in
1969.

 In March 2008, it finalised a deal with Ford Motor Company to acquire their
British Jaguar Land Rover (JLR) business, which also includes the Rover,
Daimler and Lanchester brand names.The purchase was completed on 2nd
June 2008.

 Tata Motors was established in 1945, when the company began making
trains.
  It has its manufacturing base in Jamshedpur, Lucknow, Pune and soon one
more plant is going to established at Singur, West Bengal.

 Product Manufactured - Passenger Cars and commercial vehicle

 Installed Capacity - 350,000-400,000 vehicles a year

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

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

 Employees - 2,46,000/22001

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

Tata Nano - ONE LAKH CAR PROJECT “People’s Car”

“Dream-dream and dream, because dream gives vision, vision

gives thoughts and finally thoughts lead to the action". Each letter of these
motivational words said by India's former President Dr. A.P.J. Abdul Kalam
goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year
2003, dreamt of producing a safe, affordable Car for the common man.
Finally after the wait of five years, crossing all financial and technological
barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on 10th
January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool &
smart, launched by Tata Motors is world's cheapest Car with a price tag of $
2500.

NANO FAST FACTS:

• Designed with a family in mind, the Nano has a roomy passenger
compartment with generous leg space and head room.

• Can comfortably seat four persons. Four doors with high seating position
make ingress and egress easy.

• With a length of 3.1 meters, width of 1.5 meters and height of 1.6 meters,
with adequate ground clearance, it can effortlessly maneuvers on busy roads
in cities as well as in rural areas.

• Its mono-volume design, with wheels at the corners and the power train at
the rear, enables it to uniquely combine both space and maneuverability,
which will set a new benchmark among small cars.

• The Nano has a rear-wheel drive, all-aluminum, two-cylinder, 623 cc, 33 PS,
multi point fuel injection petrol engine. This is the first time that a two-
cylinder gasoline engine is being used in a car with single balancer shaft.

• The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency.

• Performance is controlled by a specially designed electronic engine

management system.

• The Nano’s safety performance exceeds current regulatory requirements.

With an all sheet-metal body, it has a strong passenger compartment, with
safety features such as crumple zones, intrusion-resistant doors, seat belts,
strong seats and anchorages, and the rear tailgate glass bonded to the body.

• Tubeless tires further enhance safety.

• The Nano’s tailpipe emission performance exceeds regulatory requirements.

• In terms of overall pollutants, it has a lower pollution level than two-

wheelers being manufactured in India today.
• The high fuel efficiency also ensures that the car has low carbon dioxide
emissions, thereby providing the twin benefits of an affordable
transportation solution with a low carbon footprint.
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

Product Development:
The product was developed with the following features.

 Engine Capacity Bosch 624 c.c. twin cylinder

 Low capacity, Lighter, sufficient with better Power Rear Engine to reduce
the transmission length using a balancer shaft.

 4 Speed Manual Gear Box

 All Aluminum Engine

 Higher thermal conductivity than cast iron, Lighter and so better mileage

 Engine Management System by Bosch

 Superb control over emission and smooth acceleration.

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

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

 Independent Front & Rear Suspension McPherson Strut in Front & Coil
spring & trailing arm in rear.

 Better ride than Maruti 800.

 Single piece ribbed steel body with safety features such as crumple zones,
intrusion resistant doors, seat belts, strong seats & anchorages.

 Safety requirements are adequately met.

 Single Wiper in place of two.

 Cost effective yet functionality is met

 Tube less Tires

 Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern
vehicles

 Instrument console in the centre

 Elegant to look at and can be used both in Left Hand & Right hand version.
SWOT ANALYSIS

STRENGTHS:
 Low Price & stylish
 High fuel effeciency
 Brand name,
 First innovation
 35 Patents for innovation
 Environmental friendly- Green House Effect
 Variometric Gear System- Magnifies Torque
 Tested successfully for crumple zones

WEAKNESS:

 Fiber body,
 Low suspension power,
 Low engine capacity,
 Light vehicle,
 Not suitable fir hilly areas
 Less Boot space
 Poor engine cooling & hence over heating
 No headlight levelers
 No modern facilities- ABS, PS, AC

OPPORTUNITIES:

 Bikers can be motivated

 Created a Niche Market
 Creates Employment
 Auto Finance
 Diesel & Electric Variant
 Developing Low Price Engine Oil

THREATS:
  New Competitor- Bajaj, Honda Siel, GM etc.
 REVA an electric car
 Traffic Congestion
 Government may increase taxes in metros
 Rising cost of raw material
 Reducing parking space

STATEMENT OF THE PROBLEM:

 To analyse the market targeting methodology of Tata Nano

 To know the marketing methodology they have adopted .

SCOPE OF THE STUDY:

PLACE: CHENNAI

OBJECTIVE OF THE STUDY:

 To analyse the performance of Tata groups

 To study the Marketing strategy adopted by TATA in

positioning the TATA NANO

 To know about the Target customers i.e. to know about their

Market targeting

SOME MYTHS ABOUT NANO:

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

Myth no #1

Nano is an unsafe car

 The car has an all steel body.

 It meets the mandatory Frontal Impact requirements.

 It also meets the Side Impact requirements although they are not mandatory
in India.

Myth no #2

Nano will greatly increase the Pollution Level

 The car is Bharat IV and Euro IV compliant although these norms, which are
stricter than the present Bharat III norms, are yet to be introduced.

 It has lower carbon footprint, 20 mg / Km of Carbon Dioxide emission as

compared to 45mg / Km, emitted by most of the two wheelers.

 Its Multi Port Fuel Injection system is controlled by an intelligent Bosch

Engine
 Management system which controls the combustion cycle precisely to
ensure compliance to all emission norms.

Myth no #3

Nano will struggle to perform

 Although the car has 33 bops as the maximum horsepower it has a low kerb
weight of 550 Kg and so has a higher power-to – weight ratio when
compared to many existing cars running on Indian roads.
  The car has a matching acceleration to Maruti 800 and also a good top
speed.

 Although the manufacturers have estimated 90 Kms as the maximum speed

the car can go up to 105 Kms per hour top speed.

Myth no #4

Nano has very little leg room

 Although the car is 8% smaller than Maruti 800 it has lot of extra leg room
at front as there is no engine compartment. This also leaves sufficient knee
room at the rear.

 The car has a tall boy type design so there is lot of head space and also
enough Shoulder room.

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

Myth no #5

Cheap means Uncomfortable

 More comfortable than some of the cars selling at even twice the price.
Leaves sufficient knee room at the rear.

 Easy to get in & out of the car because of perfect seat height from the
ground.
 Suspension systems are good and the trailing arms with coil springs are not
found in cheap cars.

Myth no #6

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

 Rear engines work in many cheap as well as expensive cars.

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

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

 Cooling is easier in Nano as compared to some vans and there are the air
ducts on either side behind the edge of the doors, which allow air to seep in
for both cooling & for intake.

Myth no #7

There is a shortage of storage space.

 There is some storage space although not much.

 The rear seat with parcel shelf folds to allow accommodating a large
suitcase.

 Small articles can be placed under the bonnet also.

Myth no #8

Cutting Corners is evident everywhere

 Cost cutting is done by smart designing rather than taking out the essentials.

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

 Wheels are held by three bolts instead of four.

 On the contrary, MRF tubeless tyres and all Alumininium engine, have been
used, which are more expensive than conventional ones.

Because of all these reasons the Tata is facing a problem in Targeting their
product in the market.Even though the above said reasons were proved to be wrong
but they entered into the minds of the people through words by mouth. So it is
becoming very difficult for the company in targeting their customers.

LIMITATIONS OF STUDY:
 The research area we took is very small

 The time for the project is very short.

 Research conducted on the response of the 20 respondents, which cannot

correctly
 represent the population.

DATA ANALYSIS AND INTERPRETATION:

1. Do you have a car ?

S.NO PARTICULARS RESPONSE %

1 Yes 11 55
2 No 9 45
20 100

INFERENCE:

55% people have car and 45% don’t have car .

 -

2. If yes ,Which type of company ?

S.NO PARTICULAR RESPONSE %

1 Mahendira 1 5
2 Maruthi 5 25
3 Tata 2 10
4 Ford 1 5
5 Others 2 10
11 55
INFERENCE:

5% people have mahendira company of car

25% have maruthi

10% have Tata

5% have Ford

10% have other company cars

3.Are you interested in buying TATA NANO ?

S.NO PARTICULARS RESPONSE %

1 Yes 8 40
2 No 12 60
20 100
 -

INFERENCE:

40% people are interested in buying Tata nano and 60% are not interested.

4.Do you know about Nano ?

S.NO PARTICULARS RESPONSE %

1 Yes 14 70
2 No 6 30
20 100
 -

INFERENCE:

70% people are knowing about NANO and 30% are not.

5.What do you think about Nano’s feature ?

S.NO PARTICULARS RESPONSE %

1 POOR 7 35
2 AVERAGE 10 50
3 FAIR 3 15
4 EXCELLENT - -
20 100
INFERENCE:

35 % people think that the Nano’s feature is poor and 50% average and 15% of
people think excellent about its features.

5. How about the fuel efficiency ?

S.NO PARTICULARS RESPONSE %

1 POOR
2 AVERAGE
3 FAIR
4 EXCELLENT
2 10
9 45
6 30
3 15
20 100

INFERENCE:
 10% of the respondents said poor , 45% said average, 30% fair and 15% said

excellent

6.How about the pick up of Nano ?

S.NO PARTICULARS RESPONSE %

1 LESS 10 50
2 AVERAGE 10 50
3 HIGH - -
20 100

INFERENCE:

50% people think less about the pickup and 50% think average
 -

13. Do you think the long journey with Nano be comfortable ?

S.NO PARTICULARS RESPONSE %

1 YES 1 5
2 NO 19 95
20 100

INFERENCE:

5 % People think it is comfortable with long journey and 95% people think it is not

comfortable for long journey.

 -

14.Why you prefer Nano for its brand or for its features ?

S.NO PARTICULARS RESPONSE %

1 BRAND 8 40
2 FETURES 12 60
20 100

INFERENCE:

40% People are preferring NANO for its brand and 60% people are preferring for

its features.
 -

15.What is the impact of Nano at the traffic ?

S.NO PARTICULARS RESPONSE %

1 LESS JAM 7 35
2 AVERAGE JAM 4 20
3 MORE JAM 9 45
20 100

INFERENCE;

35% People said it crates less jam at traffics and 20% said moderate and 45% said

more jam.
 -

16. How about the damage to the car in case of accidents ?

S.NO PARTICULARS RESPONSE %

1 LESS DAMAGE 2 10
2 HIGHLY 5 25
DAMAGE
3 TOTALLY 13 65
DAMAGE
20 100

INFERENCE:

10% People responded that it will get less damage in case of accidents and 25%

said it will get high damage and 65% said it will get fully damaged.
 -

17.Risk of road accidents with Nano ?

S.NO PARTICULARS RESPONSE %

1 LESS 2 10
2 AVERAGE 7 35
3 HIGH 11 55
20 100

INFERENCE:
10% People said the risk of accident is less and 35% said average

and 55% said the risk is very high.

 -

18. Why cant you prefer Maruthi 800 or any other small car than Nano ,
because of its ?

S.NO PARTICULARS RESPONSE %

1 PRICE 19 95
2 SHOW 1 5
3 HEAVY - -
20 100

INFERENCE:

95% People preferring Nano for its price and 5 % for its show.
 -

19. How do you feel the presence of only one single side mirror ?

S.NO PARTICULARS RESPONSE %

1 POOR 11 55
2 OK 7 35
3 EXCELLENT 2 10
20 100

INFERENCE:

55% of the respondent felt it is poor and 35 % felt ok and 10 % felt excellent
 -

FINDINGS:
 Most people are interested in buying NANO.

 Most of the respondents know abou Nano.

 Majority of the people think Nano’s features are average.

 Most of the respondents said that the fuel efficiency was average.

 Half of them are satisfied with the pick up of NANO

 Long journey with NANO was not a comfortable one according to

many of the respondents.

 Majority are preferring NANO for its features

 Most of them felt it will create more traffic jam

 Majority felt the car tends to get more damage in case of accidents
  Many are thinking that the risk of accident is high with NANO

 Many are preferring NANO for its price

 Many are not satisfied with the single side mirror.

SUGGESTIONS:

• Fuel efficiency can be improved to attract more customers

• Try to target the high middle income group of people

• Import some more space inside the car for comfortable journey

• Try to give some loan facility through banks

• Improve the weight of the car so that it can stand with accidents

• Improve the external look of the car

CONLUSION:

The market targeting strategies of the Tata motors

in case of their NANO car was studied and due to the time
constrain we were not go deep for further studies. We didn’t
touch the areas like their market segmentation and their market
positioning which can be done at future.