Tata nano

The ONE

lakh

that car drives ONE billion dreams

contents

Idea Generation About TATA group Product Specification Product Features STP Pricing Promotion Post purchase service SWOT

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

TATA GROUP

Founded by Jamsetji Tata in 1868,

Tatas early years were inspired by the spirit of nationalism. It pioneered several industries of national importance in India: steel, power, hospitality and airlines. Tata companies operate in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals.

TATA MOTORS

Tata Motors is Indias largest automobile company.

Established in 1945, it is also among the worlds top five manufacturers of medium and heavy trucks and the world's second largest medium and heavy bus manufacturer. It entered the passenger vehicles segment in 1991 and now ranks second in India's in this market. Going forward, Tata is focusing on new technologies and innovation to drive its business in India and internationally. The latest example is of TATA nano which was recently unveiled as the worlds lowest cost car.

Tata Nano: Specifications

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

Micra and the Smart. Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four to five people Engine: A two cylinder 623 cc, 35 horsepower rear mounted, all aluminium, multi-point fuel injection petrol engine can power the car to top speeds of 105 kilometres per hour (65 miles per hour). Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed. Pollution: Exceeds Indian regulatory requirements and can meet strict Euro IV emission standards. In terms of overall pollutants, Tata says the car is better than two-wheelers manufactured in India currentl
www.tatanano.com

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

compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage. Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable whose base model sells for about 4,800 dollars -- nearly double the price of the Nano Nearest International Rival: China's Chery QQ which retails for 3,600 dollars. Market: India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.
www.tatanano.com

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 Life Cycle

PRODUCT LIFE CYCLE

Its objective is to create awareness. TATA NANO is at its introduction state. It is following selective distribution. Creating awareness in dealers and early adopters.

Maturity

Sales

Growth
Decline

Introduction

Time

STP
Segmentation :Variables used Geographic: rural and urban

Demographic: family size & income.

Behavioral: benefit & user status.

Target Market: Executive two wheeler segment,

second hand car user, auto rickshaw market, middle and lower income group people. Positioning: TATA intending to place in the mind of the consumers as a peoples car Positioning by product user.

PRICING STRATEGY

Though the one lakh price tag is not fixed by TATA group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company. To accept this challenge the following strategies are followed:-

Value Pricing Method Target return pricing

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 US$2000 (using exchange rate as of March 22, 2009)

As of August 2008, material costs had risen from 13% to 23% over the cars development ,and Tata faced the choice of: introducing the car with an artificially low price through government subsidies and tax-breaks forgoing profit on the car using vertical-integration to artificially boost profits on cars at the expense of their materials industries partially using inexpensive polymers or biodegradable plastics instead of a full metal-body raising the price of the car

CHANNEL OF distribution
So far we know Tata, its business has been expanded to the overseas i.e to the Europe,Africa,US and Australia. Hence it has n number of showrooms in India and outside of India. The exclusive showrooms are the best distribution channels for Tata itself. Its a brick and click e commerce

Tata Motors has reportedly decided to focus on semi urban and rural markets to sell the peoples car. Tata now has a plan in place where any customer that purchases a Nano in India will have to pay a variable transportation charge depending upon the purchase location, company officials said. One case in point is a car will cost 11% more in Mumbai than in New Delhi. Tata also worked out a modular manufacturing design for the vehicle, making it possible to distribute it in complete knock-down (CKD) kits where local assembly hubs and entrepreneurs can assemble and service the vehicles closer to consumers, officials said.

Tata Nano Distribution Channel

Tata Nano to have permanent Nano facility at Pantnagar

Tata Motors will set up a permanent facility for

manufacturing the Nano, the world's cheapest car, at Pantnagar in Uttarakhand, even as round-the-clock work to ready Nano's new home at Sanand, 40 km from Ahmedabad, by 2009 is on Tata Motors is also reported to have launched a distribution company - Tata Motors Distribution Companies Ltd - at Pantnagar industrial area to sell the Nano.

PROMOTION Have Fun, Pay Less, With TATA nano

The main objective of promotion strategies is to promote nano and to increase the quarterly sales. .. First objective is to create BRAND AWARENESS Second objective is KNOWLEDGE AND PERSUASION

Promotion activities
One of the most important element of promotion mix ,

publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:Publicity as One lakh car by mouth to mouth. Auto expo 2008,New Delhi & Geneva Publicity through print & electronic media Singur violation.

The Nano,, has already been listed in the Guinness Book of

World Records as the world's cheapest car.

PROMOTION
OFFLINE
COLLABORATIONS MALL PROMOTIONS TELEVISION

ONLINE
BLOGS SOCIAL NETWORKS FACEBOOK ORKUT YOUTUBE ONLINE PANEL ONLINE NANO GAMES ONLINE ADVERTISEMENT

ADVERTISEMENT RADIO ADVERTISEMENT NEWSPAPER ADVERTISEMENT LEVERAGING EXISTING INFRASTRUCTURE

promotion activities
For other type of promotional activities ,cost factor that is 1 lakh

offline

price tag is to be keep in mind, TATA is going to launch its nano mobile for Indicom user, nano watches , nano T-shirts available in Westside stores .
Advertising:- Though Tata didnt invest heavily into TV

commercials because too much money will be invested in this regard, they did get a few channels to use the word nano instead of small wherever possible. As a part of their strategy to avoid premium for booking Nano, Tata partnered with a few banks for releasing application forms . . ICICI bank for example initiated a whole campaign to get noticed and spread the word.

Collaboration:

promotion activities. ONLINE

BLOGS:- TATA has establish the blog network and is carefully

monitoring to find out what's on people's minds especially the potential customers.. No. of Blog Posts - 61,664
SOCIAL MEDIA COMMUNITIES: Official Orkut community Members - 10,906. Official Face book Group Fans 6,000(app)

Highest View Count on You Tube- 303,006

NANO GAMES: The latest promotion includes collaboration

with ZAPAK to introduce a new game and spread the word about the car.

First Tata Nano Car Goes into the Hands of a Mumbaikar Ashok Raghunath Vichare
So, 17th July, 2009 marks a remarkable date from which the distribution of this first lakh cars had started and this month also marks the nationwide distribution of nano cars.

SWOT analysis
STRENGTH Price, mileage, style, brand name, all weather vehicle, first innovation. Fiber body, low suspension power, low engine capacity, light vehicle, not suitable for hilly areas, delay due to singur violation. WEAKNESS

OPPORTUNITY Bikers can be motivated, auto rickshaw & second hand market can be motivated. THREAT Other competitors (Bajaj, Maruti , Tara

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