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They are still saying it cant be done, he says, insisting that it can and will

Entire contents 2006 Forrester Research, Inc. All rights reserved.

Entire contents 2006 Forrester Research, Inc. All rights reserved.

Tata motors limited is India's largest automobile company. The company is the worlds fifth largest medium and heavy commercial vehicles manufacturer. Established in 1945, TATA Motors presence indeed cut across the length, breadth of India with over 4 million vehicles since the first rolled out in 1954 . The foundation of the companys growth is the deep understanding of the customer need, and ability to translate them into customer-desired offerings through leading edge R&D.

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Introducing the Tata Nano it received media attention due to its target low price. The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as expended the car market by 65%. The car was envisioned by Ratan Tata chairman of Tata Group and Tata motors who has describes it as an eco-friendly peoples car.

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To study about how a new product- Tata Nano was developed based on marketing theory of new product development. To study about what made possible for Tata to develop and produce a car for just Rs. One Lakh. To study the objectives and target customer of Tatas One lakh car.

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A promise is a promise, said Rattan Tata, chairman of Tata motors, on 10th January 2008 when the Nano was first displayed at the auto show in Delhi. The Nano project didnt grab the attention of only Indians; the entire worlds had their eyes glued to the worlds cheapest car.

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Strength
Brand Name TATA Cost Price Low Fuel Efficiency Safe Weaknesses Low power Not a status symbol Delay in manufacturing Limited features

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Opportunities Large market for selling Awareness in the market First car in low range Can hit it global market Threads Company rival Not sure to hit in rural and semi urban area

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A product can be considered new in the following situations: New to the world products New product lines Additions to exiting product line Improvements and revisions of exiting product Repositioning Cost reducing As far as Nano is concerned, it falls into new to the world products in the context that it has made a history for the cheapest car ever made without compromising on quality.

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For a father driving scooter with a young kid standing in front and wife seated behind holding a little baby in slippery roads.it goes downright dangerous. This led to wonder whether one could conceive of a safe affordable, all-weather form of transport for such a family.

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no. of cars has per 1000 people = 7. Average growth of auto industry=12% , but passenger vehicle sold in India(end of march 2006)=just 1.3 million. The car purchased by 1 billion Indian per year = car purchased by 300 million American per month. if 4 wheeler cost as little as 2 wheeler , that could change the fast.

About 7 million two wheelers were sold in India in 2006- prices between Rs 3000 & Rs 7000.

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So Tata is targeting a price of one lakh. that is impossibly cheap in the west but remains 3 times higher than Indias annual per capita income. The average pay for factory workers a Tata motors is just Rs 27500.

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A scooter with two extra wheels at the back for better stabilities?
An auto rickshaw with four wheels? A three wheeled car like a closed auto rickshaw?

A four wheeled car made of engineering plastic?


A four wheeled rural car?

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Rolled up plastic curtains in place of window? Openings like auto rickshaw from the side? A four wheeled opened car with safety side bars?

But a market wanted a car which is not something that people would say, ah! Thats just a scooter with four wheels or an auto rickshaw with four wheels and not really a car.

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During interaction with customers Wagh (Garish Wagh, project leader) realize that four wheels had emotional not just practical appeal.
Areas of concern: Built on a different platform than conventional once. Safety & regulatory requirements Capable to take any challenge.

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Cost:

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Total sale estimation: Now the question was, how much to produce. 1. It should be twice of the demand of Maruti 800, the lowest end car. 2. The price shall be increasing the demand. 3. If only 10% customer of 9 million two wheeler market transit to 4-wheeler it shall amount to 50% of the passenger car market share. 4. It was decided to setup plant with 5 lacs car per annum capacity.

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finally the product was developed with following features: Engine capacity- Bosch 624 c.c. twin cylinder. Low capacity, lighter. 4 speed manual gear box. All aluminum engine. Higher thermal conductivity than cost iron, lighter and so better mileage. Superb control over emission and smooth acceleration. Dimensions L:3.1m, W:1.5m, H:1.6m.

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Safety requirements are adequately met. Single wiper in place of two.

Cost effective yet functionality is met.


Tube less tires.

Instrument console in the center.


Elegant to look and can be used both in left and right hand version. The final verdict THE COST IS Rs1 LAC

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Nano would be commercialized in whole of the India. It was mostly targeted to the middle class and lower middle class people.

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To find the perception of TATA NANO among the young Generation Executives studying at IILM.

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Characteristics of NANO..

Cheap- it is the cheapest car in the world. 1 lack for standard model. Due to this it is considered as the peoples car. Fuel-efficient engine- its mileage is 20km/liter. The luxury model has a diesel engine.

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Safe- the car contains a strong passenger compartment with crumple zones, intrusion resistant doors, seat belts, strong seats, anchorages it had passed a full frontal crash tests. Moreover its a safer way of transport than motorcycle and rickshaws.
Comfortable NANO has been conceived for four person . Its space adapted according for this. Four doors enables the entrance in the car. Seating space is generous and quit comfortable. Besides, the car will be available in to two models- standard and deluxe.

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Ecological according to Ratan Tata, It is less pollutant than two wheelers being manufactured in India. Trendy- both version of Tata Nano (standard and deluxe ) will be available in several colors. The customer will also have the possibilities to choose additional accessories to adapt the car to its needs to make its look trendy and stylish.

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To discover the Tata Nanos perception we needed to know what respondent think about Tata Nano. We identified some characteristics as rural, safety, trendy and ecological which can define Tata Nano and respondent need to be asked if they agreed and also know information about whether the respondents perceive NANO as the car for young generation or peoples car or both. Besides they needs to be questioned social class target for NANO. They have to chosen between upper class , upper middle class ,middle class, middle lower class and lower class.
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Moreover we identified the following criteria: price and affordability, fuel efficiency, good design, quality, comfort, after sale services and Tatas brand name as part of the reason why people by Nano. We need to know the purchase intention of the respondents and whether they think Tata Nano will be successful or not .

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Survey result-

We interviewed 50 student of the school in order to complete the survey. 44% of them were female and 56 % male. We have balanced proportion between both genders .

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General perception of Nano.

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Target market.

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Correlation

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Nano is not really perceived as a rural car. 64% of respondents disagree with this fact that it is a rural car. Despite being the cheapest car in the world people accept and see it as a city car. According to secondary data analysis we found that Nanos main market in rural India but it has also huge market in Tier1, Tier2 and Tier3 cities in India.

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60% of respondents agree that Nano is a trendy car. People perceive it is also a fashionable car. It has potential to make huge business apart from rural part.
More than 90% of respondents agree with the it is peoples car. We got mixed responses about Nano as a car for young generation . It is a car fits to the needs of all types of customers. It is a product for mass consumption. We have got fairly mixed response in term of safety and ecology. Most respondents said they dont know whether it is safe, ecology or not.

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The respondents perceive Nano as a car of middle and lower middle class. Its price, its size and its features are the reason of such an affirmation . It is also conform that it is a car of masses. Price and Tata brand name is most important reason for that the people buy Nano. 96% respondents gave price as the first reason for the buy Nano. We believe the company should keep up its brand leverage on the people. It must keep the promised price . The other reason like good design, fuel efficiency , after sale services were not considered important because Nano is yet to be launched.

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67% respondents think that the Nano is a successful car just 4% of them doubt this. This suggest that people trust Tata as a company, they think very positively about Nano despite the fact that is has not launched.

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In the questionnaire in a question where the respondents had to rank choices from 1 to 7, they ticked only one choice, instead of ranking them so we had to narrate that question to most of the respondent order to get accurate information.

The term ecological in one of the questions was not very clear so we had to explain it to respondents.

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Anther issue while selecting the sample is convenience sampling. We decided to go for convenient sampling in order to make the process sample Sample does not represent the whole target market for Nano. We have chosen only one segment, young executive.

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This project useful because it completed the theory which we learned in class. It allows us to use the whole market research process and to understand the each stage of it. We learn that how to conduct the survey through the collection of secondary data and the elaboration and administration of a questionnaire to a selected sample.

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Submitted by SHACHI PANDEY AD & Vth sem

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