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3. Table & Graph 3.1 4. Table & Graph 4.1 5 Graph 5.1 6 Graph 6.1 7 Graph 7.1 8 Graph 8.1 9 Graph 9.1 10 Graph 10.1 11. Table 11.1 Table 11.2
Awareness of TATA Nano Responses over Awareness Acceptance Level of TATA Nano Responses over Liking and Plan to Buy Name Justifies the Product Showing Responses over Name NANO Bike over NANO Showing responses for Bike over NANO Feature that inspires the purchasing decision for NANO Showing responses over the features Preferred Color Showing responses over most preferred color Recommendation of NANO Showing responses over Recommendation of NANO NANO as Dream Car Showing responses over NANO as Dream Car Cluster Analysis Final Cluster Centers No. of Clusters in each case
Executive Summary
The research was conducted to find out the perception of the mass towards TATA Nano. The research was done completely for academic purpose for the course Research Methodology. The Researchs main objective was to find out the awareness level, acceptance level towards NANO and the major factors affecting the purchase of a small car like NANO. The research was based on both primary data collected through survey using questionnaire and also through secondary data like journals, magazines and articles. Almost 100 respondents were interviewed using a structured questionnaire. The data was collected from different areas of Bangalore like BTM, Kormangla etc. The data was tabulated using excel sheet. The data analysis was done through tables, charts, graphs and some of the statistical tool like factor Analysis, cluster Analysis. The software package used for the data analysis was SPSS 14.0.
Manufacturing:
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenization. This focus has driven the Company to set up world-class manufacturing units with state-of-the-art technology. Every stage of product evolution-design, development, manufacturing, assembly and quality control, is carried out meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in the West and Lucknow in the North.
Jamshedpur:
Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab & Cowl Factories, and the Novus. Engineering Division, which has one of the most versatile tool making facilities in the Indian sub-continent.
Uttarakhand
The company has set up a plant for its mini-truck, Ace, at Pant Nagar in Uttarakhand. The plant will begin commercial production during the course of the year.
Research:
Research & Development:
Research provides the much-needed inspiration for the birth of new ideas, which in turn breathes new life into products. World-class automotive research and development are key factors that contribute to the leadership of the Company.
TATA NANO
Tata Motors' plans would produce, in real terms, by far the cheapest car ever made. An Indian car may soon earn a parking place in history alongside Ford's Model T, Volkswagen's Beetle and the British Motor Corp.'s Mini, all of which put a set of wheels within reach of millions of customers after they rolled onto the scene. Tata Motors is developing a car it aims to sell for about $2,500 the cheapest, by far ever made.
# Source :(NYSE: TTM - news - people)
Tata Nano - The little car that might change the world
TECH SPECS:
Length Width Height To seat Engine Power Position Boot Fuel Fuel injection Fuel consumption AC Passenger side mirror Power steering Price Tyres Body Safety features Suspension : 3.1 m : 1.5 m : 1.6 m :4 : 643cc, 2-cylinder, all-aluminum : 33 BHP : Engine, battery at rear end : In front : Petrol : MPFI : 20 kmpl. : Only in deluxe version : No : No : $2500 at dealer + VAT + transport cost. Base version approximate on-road price: $3000 : Tubeless tyres. : All-steel : Crumple zones, intrusion-resistant doors, seat belts, 2 A-Pillars : Independent front and rear
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The ultra-secret people's car for India - the Tata Nano - is here. How will this car change the way India, and the developing countries drive?
The Nano is disruptive tech - make no mistake. The world's car manufacturers have expressed all shades of opinion in the run-up to the Tata Nano. Suzuki has said that it is impossible V W said it is not what they want to do. DaimlerChrysler said they think it is an important market Tata is trying to tap. There was no way Tata could design a car the conventional way. So went at it on a clean slate. And seems to have pulled it off. The rear engined car will have a small boot for luggage storage in the front. In the process of developing the Nano, Tata Motors has added 40 patents to its kitty. This car, if it becomes a hit, will make every auto company change the way it works and look at the volume market. Not only in India, but in entire Asia and every third world country. Offering mobility for the masses is big business. The VW Beetle did that, and so did Henry Ford.
Environmental Impact
In India, a car like this can crowd the streets, forcing the government to improve infrastructure - and as the evolution of the Western industrial society demonstrates, affordable cars can be a major force for change. But till that happens, this is a car that can seriously crowd the streets - and make life a bit tougher in the short-term. The car will have a two-cylinder 624-cc petrol engine with 33 bhp of power. It will also have a 30-litre fuel tank and four-speed manual gearshift. The car will come with air conditioning in the deluxe version, but will have no power steering. I know, that's pathetic power by American and Western standards. But Indian maximum legal speeds are way lower than them - and Tata Motors anyway claims that the car is as fast as the Maruti 800, India's original People's Car that changed things a couple decades back. And there are a million or more of them on the streets of India already. The car will have front disk and rear drum brakes. The company claims mileage of 22 kmpl in city and 26 kmpl on highway. The $ 2500 is the dealer price - the actual price on the road might be approx Rs. $3000. The car launched is being avidly watched by the auto industry around the world.
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SAFETY
Passes crash tests. Side impact test yet to be done, but Tata is confident about it. It has 2 A-pillars on one side to better meet safety norms. No airbags. Airbags are still not a required feature in India. But you have crumple zones, intrusion-resistant doors, seatbelts and anchorages. A four wheeler is safe than a scooter. So to begin with, the huge two wheeler population of India gains a safety benefit. But will it pass the safety requirements of a large car or even a high technology compact? Unlikely. But that is not the objective - it is to improve the safety of fourmember families like this one that rides scooters and at risk every day. And so here it is. If Tata Motors is right, we could be witnessing a serious disruptive force and one that might kick-start India on to a high growth path. Successful mass market mobility does that to a country.
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Mechanicals:
Everyone, and it does not discount the motoring journos, expected the One Lakh Car to have a plastic body. But boy did Tata play it big there! Contrary to everyones belief, the Nano is a metalbodied car with four full-blown doors to ease the ingress and egress. This is a uni-body construction but makes use of a sub-frame which adds to the strength in addition to providing support for drive train and suspension units. The suspension has a story of its own altogether! Well, Tata engineers said that since the rear-biased weight distribution led to some scary moments while testing the car, they had to optimize the suspension setup and add a fair amount of other eccentric but equally helpful technical add-ons like fatter rear tyre while the battery box and fuel tank are placed right underneath front occupants. The engine is what has been the buzz word around the car. It is an all-aluminum two cylinder engine displacing 624cc with two valves per cylinder driven by a single overhead camshaft. The bore and stroke are nearly similar giving it a square form. Making the Nano move will be the power of 33 horses which will peak out at 5500rpm while 48Nm of turning force will be supplied at a meager 2500rpm which should help the drivability of the car. The Nano will transmit its small amount of power via a 4-speed cable operated gearbox with the fourth being an overdriven ratio. Tata is working on developing an automatic gearbox as well but that will not be available when the car gets launched later this year. In addition to the 624cc petrol engine, the Indian auto giant might also bring out a common-rail diesel engine (700cc) which might be of the same architecture as the one seen on Tata Ace.
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LITERATURE REVIEW
Article 1 :What gave Nano a headstart ?
The Nano could potentially challenge the conventional wisdom within the auto industry that wholly new concepts do not live long enough. New launches basically add a whistle here and a bell there to the plethora of existing models. Indeed, in more than 70 car launches worldwide, there have been not more than a handful of seminal shifts within this industry.
But the Tata offering has come to topple all those casts by reordering the status-quo. The whole story seems to strike two notes at once. The first one is true to the old adage among businesses that the wise profit from giving that which profits their customers; the second dares to contrarily create and nurture a space that others overlooked or even rejected.
Small-car concept
The Tata project bore none of the above usual stamps of success. Yet it is pretty hard to term Nano anything but a success going by the reception it received. This perhaps indicates that the real game is one of strategy. Indeed, it is not so much about cars or of experience as about getting clear the underlying concepts and attitudes. Ironically, Tata's capture of the "small car concept" is in itself hardly path-breaking.
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Two perspectives
Unlike Tata Motors, almost none of the global majors had paid due attention to the thought of an all-new small car. There is, for sure, a big difference between scaling down a big-sized car to a viable small size. The gamut of idea generation, concept, design, making, retailing, and so on, differs a great deal between the two perspectives. The first perspective tweaks to fit what is already on hand, whereas the second creates afresh to fulfill what is widely sought. Consequently, the processes that colour the making of an inexpensive and cheerful car are not at all 'cheap'. Understandably, those processes have to be richer in innovation, bolder in imagination, nimbler in evaluating and, of course, shrewder in putting together the pieces (ideas, hardware, and costs) appealingly.
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PROBLEM DEFINITION
Marketing Research Problem:
To find out the consumer perception on TATAS NANO .
TATAs NANO was launched on 23rd March 2008. There has been lots of excitement and enthusiasm among the mass for the product. To find out how the common mass perceives the product and how should TATA Motors position NANO it is important to conduct a research.
To know about factors affecting purchase decision of TATA NANO. To find out the target segment for TATA NANO
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RESEARCH METHODOLOGY
RESEARCH DESIGN:
Descriptive Research Method
SAMPLING PROCEDURE:
Sampling Plan: Convenient Sampling (Non-Probabilistic Sampling Method) Sample Size: 40 respondents
QUESTIONNAIRE DESIGN:
The research was done on the basis of a structured questionnaire
LIMITATIONS:
The accuracy of the responses given by the respondents. Data was collected from the limited locations of Bangalore; therefore findings cannot be generalized for the whole city or country. Language was a barrier between the interviewer and the respondents to collect the responses.
DATA COLLECTION
Data was collected from the following two sources:
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Graph 1.1
The above mentioned chart clearly shows that out of 100 respondents 64 were males and 36 were females.
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Graph 1.2
The above mentioned chart clearly shows that majority of the respondents lies between the age group of 18-50 yrs.
Graph 1.3
The above mentioned chart shows that data was collected from respondents having varied types of occupation. The majority of the respondents were pvt. sector employee and students.
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Graph 1.4
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2. FACTOR ANALYSIS
To understand the various parameters affecting the perception of the mass towards TATA Nano, the respondents were interviewed with the help of questionnaire mentioned in the appendix having the variables found from the secondary data. Further analysis was done through factor analysis with the help of SPSS software. The goal of the factor analysis is to reduce the no. of original set of variables to a smaller set of comprehensive factors for use in subsequent multi-variant analysis. Therefore through the factor analysis the 13 variables that the perception of the mass can be reduced to lesser no. of comprehensive factors that can explain the other variables. This shall reduce the complexity. The output we get after compiling the input data is:
From this table it can be interpreted that the value of KMO is greater than 0.5, which means that our research data is appropriate and valid. KMO value is greater than 0.5 because no. of respondents were more than 5 times the no. of the decision variables.
1 2 3 4 5 6 7 8 9 10 11 12 13
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Graph 3.1
The above mentioned pie-chart (Graph 3.1)and table (Table 3.1) shows that majority of the respondents were aware of the TATAs Nano.
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Graph 4.1
From the above mentioned chart it can be realised that liking of the respondents towards TATA Nano is very high i.e. TATA Nano is liked by most of the respondents. But there is mixed responses over their plan to buy TATA Nano. There were around 40 respondents who may buy TATA Nano and there 32 respondents who may not buy. The rest 28 were neutral.
Graph 5.1
The Graph 5.1 shows that most of the respondents believe that the name NANO justifies the product.
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Graph 6.1
Most of the respondent will not prefer purchasing Bike over Nano.
Graph 7.1
Price is the major feature of NANO that inspires respondents the most.
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8. COLOUR
Graph 8.1
Most of the respondents preferred yellow and red colour as their preferred colour for NANO.
9. RECOMMENDATION OF NANO
Graph 9.1
From the above mentioned graph it can be observed that most of the respondents shall recommend NANO to others.
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10.
Graph 10.1 It can be observed from the chart that majority of the respondents do not see NANO as their dream car.
11.
CLUSTER ANALYSIS
Cluster Analysis is performed to assign the objects into groups (called clusters) so that objects from the same cluster are more similar to each other than objects from different clusters. Therefore in this research, the sample of 100 respondents can be classified into certain no. of groups or clusters showing the same attributes. This form of analysis will basically help the marketer to position their product in a much effective way by targeting a certain group of individuals. Therefore it is important for the research to find as to which cluster of people TATA Nano should be targeted. Here the grouping variables are age, sex, profession, monthly income, family members, awareness of TATA Nano, liking and plan to buy Nano. After running cluster analysis through SPSS software using the above mentioned grouping variables, following output was obtained:
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K-means Clustering
After running the K-means clustering by entering the no. of clusters as 3, following output was
obtained:
Table 11.1 Final Cluster Centers Cluster 1 SEX AGE PROFESSION MONTHLYINCOME FAMILYMEMBERS AWARENESS LIKING PLANTOBUY 1.62 1.54 2.69 3.85 6.62 1.00 3.92 1.92 2 1.28 1.25 1.72 1.94 4.19 1.06 4.03 1.75 3 1.35 1.45 2.98 4.42 4.05 1.11 4.09 1.62
Table 11.2
CLUSTER 1:
This cluster includes 13 respondents. The major characteristics of this cluster are that most of them are females, the age group is between 18-50yrs, the major profession is Pvt. Sector employee and students, monthly income is above Rs. 20000, Avg. no. of family members are 6, all are aware of the TATAs Nano, they somewhat like TATAs Nano but they dont plan to buy it.
CLUSTER 2:
This cluster includes 32 respondents. The major characteristics of this cluster are that most of them are males, the age group is between 18-30yrs, the major profession is Pvt. Sector employee and govt. employee, average monthly income is around Rs. 10000-Rs.15000, Avg. no. of family members are 4, all are aware of the TATAs Nano, they somewhat like TATAs Nano but they dont plan to buy it.
CLUSTER 3:
This cluster includes 55 respondents. The major characteristics of this cluster are that most of them are males, the age group is between 18-30yrs, the major profession is Pvt. Sector employee and students, average monthly income is above Rs. 20000, Avg. no. of family members are 4, all are aware of the TATAs Nano, they somewhat like TATAs Nano but they have larger orientation towards buying TATA Nano. Therefore, TATA Nano should target cluster 3 due to higher intend to purchase, family members are 4 which are suitable for TATA Nano.
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Appendix
APPENDIX 1 QUESTIONNAIRE
SECTION - I
PERSONAL DETAILS Name: __________________________________________________________________ Sex : Male Female
Age :
18 - 30 yrs
30 - 50 yrs
Above 50 yrs
Profession:
Businessman Professional Any other _______________ Rs. 10,000- Rs.15000 Above Rs. 20,000
(1) Do you have any Vehicle ? Yes If Yes than Specify, Two Wheeler Four Wheeler Both No
(2) Are you aware of Tatas NANO car ? Yes (3) Do you like the Tatas NANO ? Very much Somewhat Somewhat Not at all not No
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(4) Do you plan to buy a NANO in the next 1 to 2 year ? Yes No cant say
(5) Which model would you go for ? Deluxe (with AC) Standard (without AC)
(6) Do you think name NANO justifies the product like car? Definately Probably Might or might not Probably not Definitely not (7) Instead of purchasing a Bike, will you prefer to go for the NANO? Yes No cant say
(8) Which feature of NANO attracts you most, that inspires you to go for NANO? Price Interior space Design Mileage (9) Which colour of NANO would you prefer? Red Blue White (10) For what purpose would you like to use NANO? Will offer it to your children to use it in place of a two wheeler. Will use as family car for shopping and travel. Will prefer as a taxi. Would like to offer as gift. Any other, specify ................................. All the above Cant say
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(12) Will you recommend NANO to your friends and relatives? Probably will not recommend Definitely will recommend Probably will recommend Not sure (13) Which small car would you prefer to buy? Maruti 800 Tata NANO (14)Will there be traffic problem with the introduction of NANO on Indian roads? Definately Probably not Probably Might or might not (15) Can you trust NANO for safety? Definately Probably Might or might not Probably not Definitely not (16) What do you think of its mileage of 21km/l ? Very Good & reason to buy Good enough for small town (17) Do you think that Purchase decision of NANO will affect your status? Definately Probably Might or might not Probably not Definitely not Not enough Definitely not Other.. Definitely will not recommend
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(18) Rate the following attributes of in order of your preference , while buying NANO, on a scale of 1 to 7 (7=very good, 1= very poor) 1 2 3 4 5 6 7 I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I I------I-------I-------I-------I------I------I
Brand Name Shape/Design Safety Affordability Comfort Status Lifestyle Mantainence Interior space Accessories Power power steering brakes
(19) Do you believe that NANO is a dream car of yours? Definitely Probably Might or might not Probably not Definitely not
Place..
Sign..
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