Tata Nano

PREFACE This is a explore intention on a cultivation on effectuate of impudent cheapest auto in the existence by TATA Company name TATA NANO. The objective of this research proposal is to rise up come in an opportunity or a problem in the launch of the sm completelyest /cheapest auto targeting masses through secondary information / selective information. Also to come upon knowledge close how TATA brought this reinvigo pointd product i. e. , NANO up to the development confront and ultimately going to launch it on 23rd March, 2008 (already launched till now). During this stray I researched on how TATA real NANO following Rupees1 lakh ($ 2500 U. S) and what forget be its effects.A mountain was also done for understanding consumer subverting simulate and preferences (which is a part of secondary data). Thus, this study is based on natural product development in marketing for TATA NANO. Marketing guessk is the revenue enhancementonomic and objective identificati on, collection, analysis, dissemination, and use of information for the r tabuine of improving decision devising related to identification and solution of problems and opportunity. Perception is the process, by which an private selects, organizes and interprets information inputs to create a meaningful picture of the world near as.I conducted to gain an understanding of what goes in to mind of the customer ab turn out NANO. I have accepted lot during my research proposal on TATA NANO and I hope this will be helpful to remember out the proposal information. parry OF CONTENTS ACKNOWLEDGEMENT2 PREFACE3 INTRODUCTION OF TATA beat backS5 PROBLEM & research OBJECTIVES6 context OF teach7 OBJECTIVE OF STUDY7 LIMITATIONS7 QUALITATIVE research7 ENVIRONMENTAL stage setting OF THE PROBLEM8 MANAGEMENT decisiveness AND marketing look PROBLEM8 MANAGEMENT DECISION PROBLEM8 merc pass onise RESEARCH PROBLEM9 guesswork9 second-string DATA9TATA NANO FEATURES10 aim MARKET10 SWOT ANAL YSIS11 COMPETENCIES OF TATA NANO11 COMPETITION11 CAR monomania PER green muckle12 RESEARCH METHODOLOGY12 add together human activity OF VEHICLES (INDIA)12 GROWTH OF MOTOR VEHICLES (INDIA)13 % OF PEOPLE WHO ARE aw be(predicate) OF TATA NANO13 PREFERENCES OF diametrical AGE GROUP REGARDING BUYING OF NANO13 TATA NANO A PEOPLES CAR13 interior(prenominal) MARKET SHARE13 BOMBAY STOCK EXCHANGE TATA MOTORS14 gondolaMOBILE PRODUCTION14 railrailway car EXPORT14 IDENTIFICATION OF cardinal ISSUES14 SUGGESTIONS14 ANALYSIS OF TATA NANO15 IMPACT OF TATA NANO ON LIFE OF COMMON MAN15PORTERS 5 FORCES MODEL OF NANO CAR15 BARRIERS TO ENTRY15 BUYERS16 SUPPLIERS16 SUBSTITUTES16 COMPETITVE RIVALRY16 CONCLUSION FUTURE OF TATA NANO16 mesaS CHARTS & FIGURES17 INTRODUCTION OF TATA NANO18 SECONDARY DATA18 RESEARCH METHODOLOGY20 ANNEXURE23 INTERNET WEBSITES23 TEXT BOOKS / MAGAZINES/ NEWSPAPERS24 INTRODUCTION OF TATA MOTORS DREAM DREAM AND DREAM, because dream gives visual modality, vision give s thoughts and finally thoughts lead to the action Each letter of these motivational spoken communication said by Indias former President DR. A. P. J. ABDUL KALAM, goes exactly with MR.rattan TATA, Chairman of TATA GROUP, who in the year 2003, dreamt of producing a safe, afford suitable car for the commonalty man. Mr. RATAN TATA launched TATA NANO on 10th January, 2008, at the 9th railcar Expo 2008 in New Delhi. Established in 1945. First Vehicle rolled out in 1954. Indias largest business group. Diverse Business in 7 sectors. International income 61 % of group revenue. Operations in over 80 countries. Products & Services exported to 85 countries. Largest employer in private sector over 3, 00,000 employees. military man cheapest car with a price tag of $ U.S 2,500. First partnership from Indias engineering sector to be listed in NYSE (September, 2004). unquestionable Indias first fully indigenous passenger car. Operations in U. K, South Korea, Thailand & Spain. Over 4 milli ons TATA vehicles fly on Indian roads. dry land wide dealership 3500. * (TABLES CHARTS & FIGURES) PROBLEM & RESEARCH OBJECTIVES To study about how a new(a) product TATA NANO was developed based on marketing practicalness of new product development. To study about what made possible for TATA to develop and produce a car for just Rupees ONE hundred thousand ($ U. S 2,500).To study the objectives and target customers of TATAS ONE LAKH CAR. To study on consumers buying behavior and preferences and views about TATA NANO by divers(a) methods of data collection. To find out the consumer perception on NANO car in INDIA. SCOPE OF STUDY This study would be utile for companies to know what mass perceive and thinking about Small Fight that is NANO. This study would be useable to other students as a secondary data. This study would be reusable to form strategies according to perception of people about NANO. OBJECTIVE OF STUDY To know the consumer perception on NANO car.To find out t he acceptance train of people. To find out the aw are(predicate)ness level about NANO car. To know about factors affecting purchase decision of NANO. To know how purchase decision of NANO varies from polar income group. LIMITATIONS I will have to rely upon the information effrontery by respondents, which whitethorn not be fully true. This study will be limited to only Indian Population. It is only for short period of clock. lack of professional approach since researcher is a student. Subjectivity is the main limitations of such(prenominal) studies. These sorts of upchucks take generally longer period than other ones.Situations may abide a change. Hence, time gap may effects the achieverful implementations of research results. CHARACTERISTICS OF RESPONDENTS all told have thrust experience. Time Duration 1 hour. All have a good knowledge of TATA NANO. specimen sizing 500. Sample group location. information collection involves a field force and electronically. mount Group 20 25 26 35 36 45 45+ (both males & females) QUALITATIVE RESEARCH Taken 100 respondents, placid on the basis of secondary data. Respondents based on previous driving experience, driving license & knowledge about TATA NANO.Based on different cultures, regions & age-group amongst 20 25 years. This project of TATA NANO is based on based on basic research because it is not aimed at solving a grumpy pragmatic problem. Also generally force outnot be immediately implemented by marketing executive. Verify the acceptability of a given theory, or to l master to a abundanter extent about a certain concept. My research is based on Descriptive Research. Survey most common method of descriptive research. Research technique gathering information from a take of people utilize questionnaires (which will be utilized later for primary data).Different survey methods to contact respondents telephone/mail internet & in person. ENVIRONMENTAL CONTEXT OF THE PROBLEM Past Information & Forecast Resources & Constraints Objective Buyer look Legal Environment Economic Environment MANAGEMENT DECISION AND trade RESEARCH PROBLEM MANAGEMENT DECISION PROBLEM Will the rebirth of TATA NANO to a taxi affect cross out image and consequently sales? Will initial demand may lead to stock out? Whether the prices of TATA NANO will be sustained over a period of time with the economic changes in raw material price rise?With the swinger in sales of TATA NANO, whether the understructure of the country will be able to sustain the volume of traffic? Will the protest of farmers against TATA NANO plant in SINGUR will affect the sales? Will general perception of defacement TATA in small car segment affect the sales? MARKETING RESEARCH PROBLEM As price of TATA NANO is very cheap in INDIA, possibility of car being used as taxi stoolnot be avoided. Time to convert raw material into TATA NANO. Determining the trends in steel, gum elastic and other raw material prices. The counsel of INDIA i n building infrastructure and spending trends.They (TATA) thought that they are cheated by the government. TATA Company is known for operose commercial vehicle. This common perception screwing affect the sale of NANO. HYPOTHESIS Conversion of TATA NANO to a taxi do not affect the brand image and consequently sales. TATA NANO is safe for driving. Hike in price of TATA NANO will not affect the sale. People prefer to purchase TATA NANO instead of ii wheeler. People fag end wait for TATA NANO for few months. SECONDARY DATA The success of any project or market survey depends upon heavily on the data collection and analysis.It is necessary that the data collected is a sure data in order to achieve the research objective. Secondary Data are those data, which have been already collected or published for the purpose other than specific research need at dig. This data is simply used by the researcher for his purpose of collected data and its used for the analogous purpose. The seconda ry data sources here in this project are websites, books. It is also often called desk research because, as the name implies, it squirt often be completed from the desk of the researcher victimization printed information, the Internet, the phone and so on.The information might be internal, i. e. , available within the researchers own organization, or external where the information comes from elsewhere. Internal sources includes Organizations sales records Customer Database Complaints and other comments received from customers market research antecedently carried out from the organization Inquiries received from prospective customers Organizations annual report & Brochures, newsletters & house magazines produced by the organization.External sources includes libraries company data directories & almanacs books of statistical data Internet academic research media articles in the general & sell press reports by data agencies commercial sources international sources government database s exertion experts industry data market research reports & unpublished sources. TATA NANO FEATURES continuance 3. 1 METERS WIDTH 1. 5 METERS WEIGHT 600 KGS HEIGHT 1. 6 METERS ENGINE altogether ALUMINIUM, REAR MOUNTED, REAR WHEEL DRIVE CAPACITY 623 CC personnel 33PS FUEL INJECTION MULTI POINT FUEL INJECTION (MPFI) FUEL showcase PETROL, DIESEL VERIONS WILL BE LATERBODY TYPE winding-sheet METAL SEATING CAPACITY 04 (FOUR) MILEAGE 26 KMPL (HIGHWAYS) 20 22 KMPL (CITY DRIVE) TOP SPEED 75 K. M EMISSION NORMS EURO 1V, BHARAT STAGE terzetto COMPLIANT SAFETY NORMS FRONTAL CRASH TESTED VERSIONS ONE prototype & 2 DELUXE COMPARISON 8% LESS IN LENGTH (BUMPER TO BUMPER) WITH RESPECT TO MARUTI 800. 21% MORE INNER SPACE WITH RESPECT TO MARUTI 800. TARGET MARKET The low cost care is clearly intended for the masses. For the family of four-spot that would otherwise ride on a scooter, precariously balancing a tiny tot on the front and a baby on the wifes lap.For the first time car buye r in INDIA a huge market despite the increasing number of cars in the urban and semi urban areas. It also attracts the small cars buyers like Maruti 800. TATA NANO uses plastics and adhesives kinda than welding. Introducing the car with an artificially low price through government subsidies and tax breaks, or using vertical integration or partially using inexpensive polymers or biodegradable plastics instead of a full surface body. It has no AC, no force steering, no power windows, and no power bells and whistles Executive two wheeler people People that are works rofessionals but cannot afford to buy a three lakh car which is medium cost of small car in INDIA. Second hand car user Those people that cannot 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. midpoint and lower income group peop le These are the people that are increment and are becoming a little richer which is making them afford a car. SWOT ANALYSIS STRENGTH Cheapest car in the World. 21% much space than Maruti 800.Brand Name (TATA). Cost scathe Low. Fuel Efficient. Safe. inviolate Market Position. Research and Development. WEAKNESSES Low power Not a attitude symbol. Delay in manufacturing. No regular size luggage room. It may create much traffic problems. Dependent on vendors. Overdependence on Indian Market. OPPORTUNITIES It can capture the large market in the society i. e. center field Class. Large Market for Selling. Awareness in the market. First car in low range. Can hit in global market. THREATS Its nearer competitors BAJAJ AUTO & TARA are ready to introduce cars less than the price of NANO.Company equal Not sure to hit in rural & semi-urban areas. COMPETENCIES OF TATA NANO Expectations. Modular Design. determine Strategy. Export Expectation. Pricing & Acceptance of TATA after launch. Enth usiastic Support. COMPETITION automotive CAR CAR TATA NANO MARUTI 800 HINDUS AMBY ANDY NANO WEIGHT KG 600 800 2,000 600 SPEED 110 60 100 110 HP 33 37 100 30 VOLUME CC 630 800 1,800 200 FUEL L/HR 5. 5 3. 75 8. 0 1. 0 FUEL/HR/1000/CC 8. 73 4. 69 4. 44 5. 0 SPH 6. 0 9. 87 12. 5 30 HP/1000 CC 52. 40 9. 87 12. 5 30 CO2 E G/KM 116 145 186 21 KMPL 20 16 12. 5 11T. KMPL 12 12. 8 25 66 MPG 47. 3 37. 8 29. 6 26. 0 FARE $/HR 11 6 10 11 FUEL $/HR 5. 5 3. 75 8 1. 0 NET $/HR 5. 5 2. 25 2. 0 1. 0 NET $/YR 19,800 13,500 7,200 36,000 COST $ 2500 5500 10,000 2,400 CAR OWNERSHIP PER 1000 PEOPLE COUNTRY PASSENGERS CARS/ 1000 POPULATION TOTAL VEHICLES/ 1000 POPULATION GNI / CAPITA (GROSS NATIONAL INCOME) INDIA 8 12 620 CHINA 10 15 1,500 SRI LANKA 13 42 1,010 THAILAND 35 276 2,490 KOREA 218 302 14,000 MALAYSIA 225 272 4,520 JAPAN 441 586 37,050 UNITED KINGDOM 451 510 33,630 UNITES STATES 465 808 41,440 RESEARCH METHODOLOGYResearch methodology deals with the confused methods of research. The purpose of the research methodological analysis is to describe the research procedure used in the research. Research Methodology helps in carrying out the project report in by analyzing the various research findings collected through the data collection methods. TOTAL NUMBER OF VEHICLES (INDIA) TABLE 1 shows the progress report of number of vehicles from 1951 2008, shown on x-axis, where as number of vehicles shown on y-axis. add of vehicles in car maturationd due(p) to demand and supply of cars with potential scope in INDIA.GROWTH OF MOTOR VEHICLES (INDIA) TABLE 2 Two Wheelers Two wheel vehicles are the supreme mode of private road transport in INDIA. They account for more than three quarters of the total registered vehicle population and have exhibited the highest average annual developing rate 14. 5% between 1980 and 2007. Car, Jeeps and Taxis taken together have grown at an average annual growth rate of 9. 5% during this period, whereas the population of registered buses has incr eased at an average annual growth rate of 7. 5% over the same period. % OF PEOPLE WHO ARE AWARE OF TATA NANOTABLE 3 The % of people who are aware of the TATAS new product NANO car is shown with the help of pie map. Here, blue color indicates that people are aware of TATA NANO and red color indicates the % of people who are not aware of TATA NANO. While analyzing this chart, we can know that only 3% of the total sample population is not aware about TATA NANO. This shows the great effect of media, newspaper publisher and launching of this product. PREFERENCES OF DIFFERENT AGE GROUP REGARDING BUYING OF NANO TABLE 4 This chart shows the preference of different age group to buy TATA NANO when it is launched.On X-axis, number of respondents is given where as on Y-axis the age group is given. savory bar indicates willness to purchase TATA NANO. Red bar indicates that the respondent is not willing to purchase it and green indicates that the respondent is not sure. While analyzing this chart, we can see that the young generation is eager to buy the product. While due to some misunderstanding about TATA NANO, the older generation doesnt desire to buy it or are not sure about it. TATA NANO A PEOPLES CAR TABLE 5 In this chart, number of respondents is given on the y-axis and some features are given on x-axis.By analyzing the chart, we can say that people consider the cost factor the most for TATA NANO followed by the innovation. Even looks has got quite positive reply. TATA NANO is a product that is developed dead at minimum cost without sacrificing the quality. DOMESTIC MARKET SHARE TABLE 6 In this pie chart diagram, it shows that INDIA has a big potential in auto industry. 77% shows two wheeler, 14% passenger vehicles, commercial vehicles & 4% three wheelers. TATA NANO decided to capture two-wheeler market. BOMBAY STOCK EXCHANGE TATA MOTORSTABLE 7 This chart represents how the stock market fluctuate with the ups & downs of TATA NANO Company. The chart is f rom 2007-08 which shows how BSE increase with an increase in TATA NANO. AUTOMOBILE PRODUCTION TABLE 8 This chart shows that how automobile production is increasing any year. correspond to this chart, it shows from 2001 to 2007, where every year automobile production is increasing in all sectors such as Passenger Cars Multi-utility vehicles Commercial Vehicles Two Vehicles & deuce-ace Vehicles. AUTOMOBILE EXPORT TABLE 9 This chart shows that how automobile exports is increasing every year.According to this chart, it shows from 2001 to 2007, where every year automobile export is increasing in all sectors such as Passenger Cars Multi-utility vehicles Commercial Vehicles Two Vehicles & Three Vehicles. SEGMENTATION VARIABLE USED GEOGRAPHIC RURAL & URBAN demographic FAMILY SIZE & INCOME BEHAVIRAL BENEFIR & USER STATUS TARGET MARKET EXECUTIVE TWO WHEELER SEGMENT, SECOND HAND CAR USER, AUTO RICKSHAW MARKET, affectionateness & LOWER INCOME GROUP PEOPLE POSITIONING TATA INTENDING TO PLA CE IN THE straits OF THE CONSUMERS AS A PEOPLES CAR STARTEGIC OPTIONS UNDIFFERENTIATED MARKETING IDENTIFICATION OF KEY ISSUESSUGGESTIONS TATA should increase the production of NANO so that customers dont have to wait much for their car, as they feel urgency for NANO. As people believes that NANO is peoples car and will be low-cost by common man which was a dream earlier for them. So the price should be kept stable in future with the increase in price of raw material. Otherwise it will be out of their reach and people believe in MR. RATAN TATAS narrative of PROMISE IS A PROMISE. TATA should give exchange offer against a two or four wheeler so that those consumers can be easily converted to NANO users.Safety measures can be enhanced because people consider it as their prime concern while purchasing. An option for customization should be available. ANALYSIS OF TATA NANO This project on marketing research was a study experience and brought me close to NANO and provided us depth know ledge through focus group and survey. Focus group ended up with innovative findings, which helped us in going further on the research. But time in between the focus group was leading to group discussion. IMPACT OF TATA NANO ON LIFE OF COMMON MAN In INDIA every one can afford a NANO, just as we buy any electronic appliances for a home uses.Decrease in price of second hand car. High traffic on roads due to sale of exceeds car on roads. Increase in loan on car installments. And finally TATA NANO is definitely better than Maruti 800. TATA has succeeded in value engineering of the product and its great success for TATAS. Its something on which INDIA can feel proud of. NANO has been developed effectively. PORTERS 5 FORCES MODEL OF NANO CAR There is go along interest in the study of the forces that impact on an organization, particularly those that can be harnessed to provide competitive advantage.The ideas and models which emerged during the period from 1979 to the mid mid-eighties wer e based on the idea that competitive advantage came from the ability to earn a return on investment that was better than the average for the industry sector. As Porters 5 Forces analysis deals with factors outside an industry that enamour the nature of competition within it, the forces inside the industry (microenvironment) that influence the way in which firms compete, and so the industrys likely positiveness is conducted in Porters five forces model. BARRIERS TO ENTRY Time and cost of entry. Knowledge and Technology.Product Differentiation and Cost Advantage. Government Policy and expect Retaliation. Access to Distribution Channels. Economies of scale. Barriers. BUYERS Number of customers or Volume of Sales. Buying Volume. Differentiation. charge Elasticity. Incentives. Brand Identity or Brand Image. Switching Costs. SUPPLIERS Number of Suppliers. Size of Suppliers. Switching Costs. Unique service or product. Ability to Substitute. SUBSTITUTES Substitute accomplishment Cost of Switching Buyer willingness Price Brand COMPETITVE RIVALRY Number of Competitors. Exit Barriers. Niche Product Quality. Differentiation.Switching Costs. Industry Concentration. Diversity of Competitors. Price Competition. CONCLUSION FUTURE OF TATA NANO Emerging markets are a fertile fuze for innovation. The challenge of reaching dispersed, low income consumers in emerging markets often spurs probatory innovation. As customers gain more power, they will demand more tailor and value added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded. World is getting tougher day by day being unique is a competitive advantage. An expectation to TATA NANO has turn up this.After 100 years to Henry Ford, TATA has proved him again not only he came out of the expectations but also came out with a platform for INDIAN Auto Sector. My opinion after the study of various aspects I found that TATA NANO is definitely not for a)Someone looking for b etter accomplishment b)Someone who is looking to impress c)Someone who want to speed trial on sunlight d)Someone who is looking for long drives TATA NANO is definitely for a)Someone who is looking to buy a car but cannot afford much price. b)A student who want to go to college, culture instead of bike. c)Someone who depends on second hand car. )For a house wife who can buy a car with her own savings. e)Someone who depends on scooter. So NANO is not a basically a luxury cars but it can fulfilled the all capacity for middle class people. In this report, I would like to conclude that TATA NANO report was a challenging project for me. I have tried my level best to provide secondary data before the due date of my project. I also believe that more information could be collected and if collected more, it can be useful for the next assignment. I believe that the information or data collected are relevant and correct and could be useful for someone else also.