TATA NANO

Submitted By: Group 2

Rohan Shah FT151052
Swagatam Basu FT153062
Sayantan Dutta FT152092
Rakshit Srivastava FT153003
Mehtaab Singh FT151059
Tushar Aggarwal- FT151014
Anurup Das FT153055
Shraddha Dadhich- FT151099

TATA Nano Launch Advertisement

www.youtube.com/watch?v=3WB87eo_obU

INTRODUCTION
India is a company with majority of its population residing as low income
group. Buying a car is still a dream for many people in India.
Cars are restricted strictly to people belonging to upper middle class and
above them.

Tata Motors, a major player in the Indian automotive industry

-

In 2008, it launched the Tata Nano, 'the world's cheapest car'. Tata judged that it
would be ideal for India's growing middle class.
The dream of a Middle and even lower middle class household to have their own
car came alive with this announcement from Tata Motors.
The Tata Nano was conceived, designed, and marketed with a near-exclusive focus
on cost reduction.

Environmental Influences

PURCHASE CAPACITY-MIDDLE CLASS-PERFECT FIT

India has an expanding middle class, whose income is sufficient for

them to acquire consumer goods rather than simply subsisting.
The largest tranche of Indian households are in the $2,000 - $10,000
income bands.
A household in the $2,000 -$10,000 range might well be in a position to
spend on consumer goods.

INDUSTRY STATISTICS INDIA

Except for 2008, car sales in India has been

increasing at a rate of more than 10 %

BIKE SEEN AS AN ALTERNATIVE

Increase in cc of bikes. More people looked for

power and performance in bikes , increase in
variants in bikes More energy, more speed, more
power where as Tata Nano was a 642 cc car.

Other Factors
Political
Tax reductions applied to
specific vehicle segments

Economic

Socio-Cultural

Fastest automotive
market in Asia

Focus shift on how to

serve the bottom of the
pyramid

The growth of exports in

Asia and Africa are strong
Change in FDI rules
State wise difference in
incentives

Global recession had an

impact on the industry

By 2020 disposable
income will grow
significantly

PERCEPTION MAP Worlds Cheapest Car

VALUE

PERCEIVED

ACTUAL

PRICE

PRICE

VALUE

A Common Mans car did not go well with the aspirers as they wanted to
change their status from a two-wheeler to four-wheeler.

Do consumers have the resources to buy this

product?

In the year 2006-07, Indian domestic passenger car market grew up by 20 percent

Majority of the growth is in the small car segment

The small car penetration in the Indian market is eight cars per thousand people

The automotive sector in India, specially the small car segment is being driven by
several factors like:

improved economic growth and the resulting rising incomes of Indian consumers
preference for fuel efficient and low maintenance cars due to rise in gas prices
improved financing for autos at better interest rates
improved infrastructure like roads and other auto supplier and maintenance facilities
finally the Tax incentives provided by the Indian government

All these factors have made India into one of the fastest growing passenger car
markets in the world. It is an attractive market for innovation and investments with
a great probability of profitable returns on these investments (ROI)

High
Involvemen
t
Significant
Difference

Few
Differences

Low
Involvement

Complex
buying
behavior

Variety
seeking
buying
behavior

Dissonance
reducing
buying
behavior

Habitual
buying
behavior

Complex buying behavior

It falls under complex buying behaviour
despite the low price
In a survey 70% people have
respondent that buying TATA NANO is
as difficult as buying other cars

Consumers do not take the decision of

buying a car immediately and follow the
pattern of decision making process very
religiously

 Aim at consumers who look to a car for

Need Recognition
(safety, need, esteem)
safety

Information Search

Consumer seeks lots of information and

clarification
Focus on customer testimonials & word of
mouth

Evaluation of
alternative

Consumer paid extra for few additional

features offered by competitors, considered
as value for money

Purchase Decision

Lack of Information: mixed response for technical

features
Diffusion Process adopt innovative product after
1-2 years

Post Purchase
decision

80% satisfied vs. 20% dissatisfied

80% average safe vs. 20% equally safe as big cars

Personality, Values and Lifestyles

Tata Nano was specifically aimed at people who needed a transition from their
two- wheelers to four wheelers. Tata Nano seemed to be the logical jump at that
time since it was about Rs.50000 more than a standard two wheeler. Nano was
targeted at middle and lower income segments. It was positioned in the minds of
the people as ONE LAKH CAR that drives ONE BILLION DREAMS and as The
Peoples Car and also as The Worlds Cheapest Car.

If online polls are an indication, target audience of TATA Nano "hum-do-hamare-do

families," who were the main inspiration behind the Nano. If online polls at social
networking sites are some indication, a bulk of the potential buyers for the Nano is
predominantly male. And, they will be less than 25 years. In one online poll, 39%
of the respondents felt that the average Nano buyer will be under 25 years of age
while 81% agreed that the Nano buyer will be less than 40 years.

Research has shown that people prefer Tata Nano as the second car, despite of
their ability to pay for the costly cars. People are postponing the purchase of Tata
Nano waiting for the first car. The target audience of the company are the people
who belong to lower middle class and lower class. Lower middle class and lower
class people still purchase the car based on esteem need to improve their social
status.

Influence of Social Media etc.

To keep a tight rein on costs and yet make the Nano a marketing
success before its launch, the company wanted a website that
would use a rich social media platform to interact with customers
and end users.
The website would function as the not just as a companys brand
space but also as a creative space where customers, competitors,
evangelists and pessimists could view and evaluate and even seek
to personalize the Nano.
Tata Nano conducted this digital campaign to lift the spirit of youth.
This campaign consists a series of graffiti based pictures where
youth centric slogans were printed on them. These slogans echo the
voice for young generation and to show their contempt towards
being underestimated.
Statistics showed that there were over 30 million hits in the first
few days, with over 80000 car configurations and over 15000
individually completed survey results.

Attitudes towards the product

As mentioned in the point above as well, there are many
customers of Tata Nano who are happy of their purchase.
It was found during a survey after Nanos failure that
people didnt find it safe and often treated and regarded
it as a Toy car.
This type of pricing and ad made Nano models as poor
mans car. And people in India while buying the car also
think about the social status they would get associated
with if they drive the car.
Even though the price of cars like Alto and Spark is high
compare to the NANO people are considering SPARK and
ALTO as alternative of TATA Nano, due to image and
safety aspects.