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PREFACE

This is the specialization project on a


study on new product development for Tata Nano
along with a comparative study between Tata Nano
and Maruti 800. The objective of this study is to gain
knowledge about how Tata brought this new product
i.e., Nano up to the development stage and finally
going to launch it on 23rd of March.

The project was assigned by Dipti Mam


(co-coordinator) and Dwani Mam (assistant co-
ordinator).

During the project I researched on how


Tata developed Nano costing Rs 1 lakh and what will
be its effects. This study also includes comparison
between Tata Nano and Maruti800. A survey was also
done for understanding consumer buying pattern and
preferences.

Thus, this study is based on new


product development in marketing for Tata Nano.

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ACKNOWLEDGEMENT

I am thankful to SNDT University and


Gandhi Mahila College and specially BMS department
who provided me with the opportunity for carrying out
the study.

I would also like to acknowledge my


sincere thanks to our co-ordinator Dipti Mam. Under
their valuable guidance, constant interest and
encouragement, who have devoted her ever-precious
time from their busy schedule and helped me in
completing the project. Her co-operation was not only
useful for this project but will be a constant source of
inspiration for me in the future.

I express gratitude to various faculty


members especially Sandeep Sir for his valuable
guidance which was a good learning experience in
order to make my efforts successful.

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Special, continual assistance while
collecting the data was provided by the respondents. I
wish to acknowledge my special thanks to them for
their help and cooperation in order to complete this
project.

I am also thankful to those who have


helped me intellectually in preparation of this project
directly or indirectly.

I am deeply indebted to the various


sources of information from relevant sites from
internet and books which helped me a lot in my study
and helped me to learn a lot.

Table of contents:
Sr. Subject Pg. No

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No.

1 Objective of research 5

2 Methodology of research 6

Introduction to the subject –new product


3 development 7

4 Introduction to Tata Nano 19

Tata Nano and new product


5 development 25

6 Some myths about Nano 44

Comparison between Nano and Maruti


7 800 49

8 Data collection method 56

9 Analysis of data collection 60

10 Various charts 60

11 Some feedback about Nano 67

12 Conclusion 70

Research objectives
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o To study about how a new product- Tata Nano
was developed based on marketing theory of
“new product development.”

o To study about what made possible for Tata to


develop and produce a car for just Rs. One lakh.

o To study the objectives and target customers of


Tata’s one lakh car

o To study and compare between Tata Nano and


Maruti 800

o To study on customers buying behavior and


preferences and views about Tata Nano and
Maruti 800 by various methods of data collection.

RESEARCH METHODOLOGY

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o Research methodology deals with the various
methods of research. The purpose of the research
methodology is to describe the research
procedure used in the research.

o Research methodology helps in carrying out the


project report in by analyzing the various research
findings collected through the data collection
methods.

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Introduction To New Product
Development

Meaning Of Product:
E.g.:- milk, computer, shoes, service after
sales, railway services etc. a product can be divided into
two categories

o Tangible goods

o Intangible goods

Tangible products are known as goods that


can be touched, felt and seen. E.g.:- computer, mobile
phone etc

Intangible products are known as services


that cannot be touched and seen as the customer can
feel and experience only after utilizing it. E.g.:- service
after sales

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New Product Development:

A product can be considered new under the


following situations:-

 New-to-the-world products

 New product lines

 Additions to existing product lines

 Improvements and revisions of existing


products

 Repositioning

 Cost reductions

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Stages Of New Product Development

Before the introduction of a product into


the market, it goes through several stages of
development. These stages are known as stages of new
product development. It includes the following:

Idea Generation:

Companies seek new ideas to enhance the


performance of the existing products and to innovate new
ideas. This stage is called idea generation stage. There
are many sources for idea generation. It may be from
customers, dealers etc.

Employees throughout the company


can also be a source of idea. Toyota claims that its
employees submit two million ideas annually over 85% of
which are implemented.

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Companies also find good ideas by
researching competitor’s products and services. They can
find out what the customers like or dislike about their
competitor’s products. Ideas can also come from
investors. External research, surveys industrial
publications research and development etc.

But the main source of idea generation


is the customers by their grievances and complains and
feedback. However, although ideas can flow from many
sources, it is not feasible to implement all the ideas
generated due to lack of time and capital.

Idea Screening

The main purpose of idea generation is to


collect a larger number of ideas. However, not all ideas
can be commercially viable. Therefore, the companies
filter the less viable ideas with the help of systematic
process. Companies can use various parameters to
screen the ideas such as market size, technical
capabilities, potential competition etc.

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Addressing the following issues will also
help the companies to analysis the attractiveness of
ideas.

 Whether the product idea match the


existing products of the company.

 The degree to which the new product


can cannibalize the sale of the existing
product.

 Company’s ability to produce and


market the product.

 Buying behavior and the probable


changes in the environment.

While screening the ideas, an


organization may commit two types or errors.

Drop error where the firm rejects a very good idea.

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Cro error where a company selects a poor idea.

Concept Testing And Development:

All ideas that survive in the process of


screening will be studied in details. They will be
developed into mature products. At this stage, the idea is
submitted for the external evaluation to get a feedback
from the market. It helps a firm are organization to collect
important information like customers initial reactions
towards the product development. During this stage, new
product idea is described in the form of one or more
benefit that is then presented to a sample of potential
customers for their reactions.

Marketing Strategy:

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Following a successful concept test, the new
product manager will develop a preliminary strategy plan
for introducing new product in the market. The plan
consists of three parts.

 The first part describes the target market size,


structure and behavior for the first few years.

 The second part outlines the planned price


distribution strategy and marketing budget for the
1st year.

 The third part of marketing strategy plan describes


the long run sales and profit goals and the marketing
mix strategy over time.

Business Analyses.

After management develops the product


concept and market strategy, it can evaluate the
business attractiveness. Business analyses are the first
in-depth financial evaluation of new product to be
developed. Here management needs to prepare sales
cost and profit projections to determine whether they

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satisfy company objectives. If they do, then concept can
move to the development stage. SOWT analysis will be
conducted at this stage by the organization. It also
includes the following:

Total sales estimation:-

These are the sum of estimated first- time


sales, replacement sales and repeat sales. Its method
depends upon whether the product is one time
purchase(an engagement ring), an infrequently
purchased products like toaster, auto mobile etc. or a
frequently purchased products like consumer and
industrial non durables.

Estimation costs and profits.

The R&D, manufacturing, marketing and


financial departments estimates the costs. The
profitability of the new product is estimated through
various financial tools. The simplest technique is the
breakeven analysis in which the management estimates

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how many units of the product the company would have
to sell to break even with the given price and cost
structure. If the management believes that sales could
easily reach the break even number, it is likely to move
the project into development stage.

Product Development

In this stage, detailed technical analysis


is conducted to know whether the product produced at
costs is low enough to make the final price attractive to
the customer.

Here a working model or a prototype is


developed to disclose all tangible and intangible
attributes of the product. A product protocol is prepared
which is a detailed downiest containing the important
attributes that are expected in the product. Once the
protocol has been developed, it is handed over to the
research the development department to develop the
prototype of the product.

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Test Marketing:

The test marketing is the stage where


the product is introduced in a few selected cities. During
this stage, the company has to fate the following
expense:

 High advertisement

 High manufacturing cost.

 High distribution cost etc.

For testing the product, marketer needs


to make the decision on the following issues.

 The no. of cities in which the product is to be tested.

 Geographic location of the cities.

 Time to carry ort test marketing

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Through this exercise, company can
know the customers response, feedback, suggestions,
complaints and any other changes required to be done for
product modification.

After successfully laughing the product


in selected cities the company launches the new product
in all other cities.

There are certain methods of product


testing.

Alpha Testing

In this method, a group of target audience is


selected from the employees of the company.

Beta Testing:

It is carried out at the customer’s site.


Generally, it is applicable for industrial products where
the customization takes place.

Gamma Testing:

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It is carried out on a long term basis where
the customers uses the product extensively and gives
response after a long period of time. Say six months.

Commercialization:

The results of the test marketing help


marketers to decide the changes that are needed in the
marketing mix before entering into the market. It also
helps the marketer to decide the amount of production
distribution strategy, selling efforts and other issue like
providing guarantees, service after sales etc. the product
enters the market during the commercialization stage.

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Introduction To Tata Motors:
o Tata Motors was established in 1945,
when the company began making
trains.

o It has its manufacturing base in


Jamshedpur, Lucknow, Pune and soon
one more plant established at Singur,
West Bengal.

o Product Manufactured - Passenger


Cars and commercial vehicle

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o Installed Capacity - 350,000-400,000
vehicles a year

o Investment - Rs 2,500 crore (Rs 25


billion)

o Turnover - $21.9 billion (Rs 967,229


million)

o Employees - 2,46,000/22001

o Tata Motors had created the wealth


Rs. 320 billion during 2001-2006 and
stood among top 10 wealth creators in
India.

Tata Nano - ONE LAKH CAR


PROJECT “People’s Car”

“A promise is a promise,” said Rattan


Tata, Chairman, Tata Motors, on 10th January, 2008,
when the Nano was first displayed at the Auto Show in

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Delhi. The Nano project didn’t grab the attention of only
Indians; the entire world had their eyes glued to the
world’s cheapest car.
A truly People’s Car, this time is from
India. Though the dealer price is Rs. 1 lakh, the price on
road, when it will be launched, will reach around Rs.
1,25,00 but it will be still more affordable and will be
more eco-friendly than most other cars giving a mileage
of around 23km/liters. The price of the car is such that a
lot of rich and HNIs, if interested, can buy the car just
by a single swipe of their credit cards.
Providing a car worth rupees one lakh car
was the dream of the chairman of Tata motors Mr.
Rattan Tata. And with high qualified IT skills people he
has shown the Indian talents to whole the world.

 Idea conceived by -
Rattan Tata

 Cost of development - 1700


crores

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 Manufacturing cost
(excluding dealer margin and taxes)- Rs 65,000
per unit

 Development of Design - India

 Time for designing the car - 4


years

 Team - A team of 150 engineers , everyone


below age 28

 Biggest hurdle - To make a car cheap car

without Compromising design

May western countries as well as many foreign


countries have accepted Indian IT skills.

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Details Of Nano
Specs:
Engine: 624 cc / 33 bhp
4 door, 5 seater (and yes 4 Wheeled too)
Rear Engine
Weight: 600 kgs
Mileage - 22-23 km/liter
Variants:
Standard
Deluxe (with AC)
Future:
Diesel Variant
Exports outside India or assembly plants outside
Comparison
8% less in length (bumper to bumper) with respect
to Maruti 800 21% more in inner space with respect
to Maruti 800
Looks:
Front side looks more like Matiz (or Spark as we
now call it)Back side looks more like India with
those long tail lights.

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Insight:
People often criticize something that is making
waves everywhere. This has also been the case
with Tata Nano. Competitors, safety regulators,
environmentalists and most others conceived the
problems that India will face, when such a car is
available, much before the actual launch of the car.

This will result into:


OLD GENERATION NEW GENERATION

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SOWT Analysis

 STRENGTH  Large market


for selling
 Brand name
TATA  Awareness in
the market
 Cost price low
 First car in low
 Fuel efficient
range
 Safe
 Can hit in global
 OPPORTU market
NITIES

 WEAKNESS

 Low power

 Not a status symbol

 Delay in manufacturing

 Limited features

 THREATS

 Company rival

 Not sure to hit in rural and semi-urban areas

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New Product Development And
Nano

As seen before, A product can be considered


new under the following situations:-

 New-to-the-world products

 New product lines

 Additions to existing product lines

 Improvements and revisions of existing


products

 Repositioning

 Cost reductions

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. I.e. best way value analysis.
It can also be considered as new product in
the since of cost reduction as it’s the first time in the
history that such a cheap car is produced.

The story of the Nano is not confined to its


impact on the auto industry. It's a tale that illuminates
the India of today—an eager, ambitious nation with a
combination of engineering talent, a desire for low costs
and value, and the hunger of young managers looking to
break from a hidebound corporate environment. Indeed,
the team that worked on the Nano—on average aged
between 25 and 30—has helped to flatten Tata Motors'
stodgy, multilayered management structure, which has
resulted in an unexpected side-benefit called
"organizational innovation".
Idea Generation And Nano
A dream is born –

Says, “I observed families riding on two-


wheelers -- the father driving the scooter, his young kid
standing in front of him, his wife seated behind him
holding a little baby. Add to that the slippery roads &
Night time too. It is downright dangerous. It led me to
wonder whether one could conceive of a safe, affordable,
all-weather form of transport for such a family.”

So when Tata Motors needed someone to


take charge of the company's most ambitious plan yet to
build the world's cheapest car ever Ravi Kant, who by
then had become the company's managing director,
again turned to Wagh. Wagh remembers what he learned
marketing the little truck. "People want to move from
two-wheelers to four-wheelers," he says. "Today they
can't afford it."

More and more can, but Indian car buyers


today represent a tiny slice of a potentially giant market
India has just seven cars per 1,000 people. India's auto
industry has grown an average of 12% for the past
decade, but just 1.3 million passenger vehicles were sold
in India in the fiscal year ending March 2006. That means
a billion Indians buy about the same number of cars in a
year as 300 million Americans buy in a month.

If four wheels cost as little as two wheels,


that could change fast. About 7 million scooters and
motorcycles were sold in India last year, typically for
prices between 30,000 rupees and 70,000 rupees, about
$675 to $1,600. Tata is targeting a price of 100,000
rupees one lakh, in Indian terms of measurement or
about $2,500 at current exchange rates, for its small car.
That sounds impossibly cheap in the West but remains
three times higher than India's annual per capita income.
The average pay for factory workers at Tata Motors is just
$5,500 a year.

Idea screening
The next step was the screening of idea.
How is this dream possible? What should they make?

 A scooter with two extra wheels at the back for


better stability?

 An Auto-rickshaw with four wheels?

 A three wheeled car like a closed auto- rickshaw??

 A four wheeled car made of Engineering Plastics?

 A Four wheeled rural car?

 Rolled up Plastic curtains in place of windows?

 Openings like Auto rickshaws from the side

 A four wheeled open car with safety side bars?


But the market wanted a car and if they build a people’s
car it should be a car and not something that people
would say,“ Ah! That’s just a scooter with four wheels or
an auto-rickshaw with four wheels & not really a Car.”

Trying to build a car cheap enough for


motorcycle buyers seems to make sense now but seemed
crazy several years ago when Rattan Tata, longtime
chairman of Tata Motors and scion of the nation's giant
Tata Group conglomerate, first mentioned his dream of
building a one-lakh car in 2003. "They are still saying it
can't be done," he says, insisting that it can and will.
"Everybody is talking of small cars as $5,000 or $7,000.
After we get done with it, there will hopefully be a new
definition of low-cost."
Concept Testing And Developing

Before starting the project, Wagh did


something no one at Tata Motors ever had: He talked to
customers. The three-wheeler men inevitably insisted on
a cheap, dependable truck that could go from village to
market carrying, say, a ton of onions or potatoes, one
night, as sunset approached, Wagh stuck with one
rickshaw driver. He says, "I kept asking the question.
Why? Why? Why do you want a four-wheeler?" Wagh
remembered. Finally, he got the real answer. It turned out
it wasn't really a problem of transportation of vegetables
“If I had a four-wheeler, I would have better marriage
prospects in my village," the young man said. Drivers of
three-wheelers are looked down upon in India. Wagh
realized that four wheels had emotional, not just
practical, appeal.

Thus the new product was now to be developed.

But what type of product?

The car to cost Rs. 1 lakh on road.

 The car should be built on a different platform than


conventional ones.

 It must be meeting all the safety and regulatory


requirements.

 It has to be built on a scale which shall be more than


double the earlier launches of similar products and
the ramp up must be smooth.
 The car has to be designed so that it can be exported
to other countries as the domestic demand may not
materialize as per projections.

 The car must be a beacon for the Indian Automobile


industry and prove to the world that we are capable
to take any challenge and come out worthy winners.

That quest to build the world's cheapest car


hasn't ended. The Nano should be available this fall, but
the mission began back in 2003, when Rattan Tata,
chairman of Tata Motors and the $50 billion Tata
conglomerate, set a challenge to build a "people's car".
Tata gave an engineering team, led by 32-year-old star
engineer Garish Wagh, three requirements for the new
vehicle: It should be low-cost, adhere to regulatory
requirements, and achieve performance targets such as
fuel efficiency and acceleration capacity.
The design team initially came up with a
vehicle which had bars instead of doors and plastic flaps
to keep out the monsoon rains. It was closer to a
quadricycle than a car, and the first prototype, even a
bigger engine, which boosted the power by nearly 20 per
cent, was still dismal. "It was an embarrassment," says
Wagh.

But failure didn’t stop them


they quickly realized it was necessary to bring everyone
on board, "else it leads to last-minute heartache and
delays". Every morning, he would spend an hour or two
on the floor of the Pune factory, insisting that everyone
involved—designers, manufacturing teams, and vendor
development people—be there to accelerate decision-
making and problem-solving.
Over time, Wagh's team grew to comprise
some 500 engineers, an impractically large group to
gather on a daily basis. So instead, a core team of five
engineers gathered every day at three pm to discuss the
latest developments. Each engineer represented a
different part of the car: engine and transmission, body,
vehicle integration, safety and regulation, and industrial
design.

The body had to be changed because Rattan


Tata, over six feet tall himself, wanted it to be easy for
tall people to get in and out of the car. "Imagine the
plight of the body designer—he went through hundreds of
iterations, then at the last minute the car length was
increased by 100 millimeters!" Wagh says. The attention
to detail paid off: When the car rolled onto the dais at the
Auto Show in New Delhi in January, and Rattan Tata
stepped out of the driver's seat with ease, it made an
immediate impact.

What shook the automobile world most was


the fact that the designers seem to have done the
impossible: The sleek, sophisticated Nano doesn't look
flimsy or inexpensive. If it had been an upgraded scooter
on four wheels, Tata still would have been applauded for
making a family of four safer on Indian roads. The Nano,
however, affords both safety and status. "The innovation
wasn't in technology; it was in a mindset change".

Business Analysis

Cost

Since the car had to be built within a cost of


Rs. 1 Lac, no conventional design would work as the costs
shall be higher and so the entire car has to be
redesigned.
What makes Nano so less expensive can be
well understood from the following diagram

The design has to question the need of each


and every component from the point of view of its
necessity of existence and also the minimum
requirements of its functionality. Value Engineering
concepts have to be deployed to finalize the minimum
requirements.

Disruptive Technology:
Is a Technology that brings radical change
by introducing new ways of doing things usually at a
Technology that is:

 Significantly cheaper than existing


Technology.

 Is much higher performing?

 Has greater functionality and

 Is more convenient to Use.

 Brings to market a totally different


Value proposition than the one
available and can change the Paradigm
about a product.

The Guiding factor was that the cost has to


be minimized for each component yet maintaining its
basic functionality.

The Alternatives are:


 Reduce Consumption of Material being
used.

 Alternate Suppliers to get same


material at fewer prices.

 Use alternate materials.

 Eliminate use of Material.

 Eliminate a process Or a Combination of


the above.

The design was outsourced to Italy's


Institute of Development in Automotive Engineering, but
Tata himself ordered changes along the way. Most
recently he vetoed the design of the windshield wipers.
His solution: a single wiper instead of two, giving the car
a cleaner look.
THE COST REDUCTION PARADIGM Value Engineering
Alternatives:
The target was very clearly defined that
within the given cost structure of 1 Lac all the
components have to be allocated a maximum price and
the same had to be achieved using the available
alternatives.

The Guiding factor was that the tax


structure, on materials and manufacturing, must support
the final cost of Rs. 1 Lac

The Decisions were:

 Establish factory in a tax free zone.

 Get the tax advantages on


infrastructure development.

 Get the suppliers to establish base near


the factory.

 Get special concessions from State


Govt.

 In short select a manufacturing location


where all the advantages could be
achieved.
In short select a manufacturing location
where all the advantages could be achieved.

Total sales estimation

Now the question was, “how much to


produce”

 It was estimated that the demand for


the people’s car shall be at least twice
the demand for Maruti 800, the lowest
end car. Initial projections were at
about 500 K cars per year.

 The basic reason was the conviction


that the target price shall redefine the 4
- wheeler segment.

 The price decision of Rs 1 lakh is


definitely going to make a lot many
people transit to 4-wheeler fold and
that shall explode the demand.
 F only 10% customers of 9 Million two
wheeler market transit to 4-wheelers it
shall amount to 50% of the passenger
car market share.

 It was decided to set up plants with 5


lacs cars per annum capacity and ramp
the same up in stages, in line with
increase in market demand.

The initial response to the Nano has been


overwhelming and the tiny, Noddy-land car is expected to
help the company cross several milestones. With
revenues at Rs 1,29,994 crore for the financial year 2006-
7, and group companies enjoying a market capitalization
of Rs 2,51,487 crore as on January 10, 2008, the Tata
Group is on a strong footing, contributing more than 3 per
cent to India's GDP. Nano, being the world's cheapest car,
has made international players sit up in amazement and
the company has received proposals from some African,
Latin American and Southeast Asian countries to
manufacture the car there.

Product Development
And finally the product was developed with the
following features.

 Engine Capacity Bosch 624 c.c. twin cylinder

 Low capacity, Lighter, sufficient with better Power


Rear Engine to reduce the transmission length using
a balancer shaft.

 4 Speed Manual Gear Box

 All Aluminum Engine

 Higher thermal conductivity than cast iron, Lighter


and so better mileage
 Engine Management System by Bosch

 Superb control over emission and smooth


acceleration.

 Dimensions L: 3.1m, W: 1.5m, H: 1.6m

 Less length but more inner cabin space due to


height. Comfortable leg room.

 Independent Front & Rear Suspension McPherson


Strut in Front & Coil spring & trailing arm in rear.

 Better ride than Maruti 800.

 Single piece ribbed steel body with safety features


such as crumple zones, intrusion resistant doors, seat
belts, strong seats & anchorages.

 Safety requirements are adequately met.

 Single Wiper in place of two.

 Cost effective yet functionality is met

 Tube less Tires


 Weight reduced by 2 Kg. Cost reductions 200 Rs. And
in line with modern vehicles

 Instrument console in the centre

 Elegant to look at and can be used both in Left Hand


& Right hand version.

 The list goes on and on.

 The Final verdict

THE CAR COSTS Rs 1 lac

Test Marketing And Commercialization

Nano is soon going to launch by the end of April. It


will be commercialized in whole of India. It is mostly
targeted to the middle class and lower middle class
people. The effects of Nano and its commercialization will
be soon known after it comes into the market.

Some myths about Nano


When Nano was introduced, it
surprised everyone. It had so many features but the cost
was as low as Rs. 1 lakh. This was really amazing. Due to
this, many competitors, governments and others opposed
Nano. Moreover, it’s not a new thing that whenever a new
concept is developed, people oppose. They find more
limitations then seeing the benefits. Following are some
myths about Nano. But these are then proved to be
wrong.

Myth no 1

Nano is an unsafe car

 The car has an all steel body.

 It meets the mandatory Frontal Impact requirements.

 It also meets the Side Impact requirements although


they are not mandatory in India.

Myth no 2
Nano will greatly increase the Pollution Level

 The car is Bharat IV and Euro IV compliant although


these norms, which are stricter than the present
Bharat III norms, are yet to be introduced.

 It has lower carbon footprint, 20 mg / Km of Carbon


Dioxide emission as compared to 45mg / Km, emitted
by most of the two wheelers.
 Its Multi Port Fuel Injection system is controlled by an
intelligent Bosch Engine Management system which
controls the combustion cycle precisely to ensure
compliance to all emission norms.

Myth no 3

Nano will struggle to perform


 Although the car has 33 bops as the maximum
horsepower it has a low kerb weight of 550 Kg and so
has a higher power-to – weight ratio when compared
to many existing cars running on Indian roads.

 The car has a matching acceleration to Maruti 800


and also a good top speed. Although the
manufacturers have estimated 90 Kms as the
maximum speed the car can go up to 105 Kms per
hour top speed.
Myth no 4

Nano has very little leg room

 Although the car is 8% smaller than Maruti 800 it has


lot of extra leg room at front as there is no engine
compartment. This also leaves sufficient knee room
at the rear.

 The car has a tall boy type design so there is lot of


head space and also enough Shoulder room.
 The mono volume design and the wheels having
been put at the corners have freed up lot of in- cabin
space and although the car may be registered as a
four-setter, three slim adults can sit comfortably at
the rear.

Myth no 5

Cheap means Uncomfortable

 More comfortable than some of the cars selling at


even twice the price. Leaves sufficient knee room at
the rear.

 Easy to get in & out of the car because of perfect


seat height from the ground.

 Suspension systems are good and the trailing arms


with coil springs are not found in cheap cars. Rear.
Myth no 6

It’s very difficult for a rear - engine car to


work.

 Rear engines work in many cheap as well as


expensive cars.

 Auto-rickshaws at one end and Formula One cars on


the other extreme all use rear engines.

 Maruti Omni too has a rear engine, under the seat


and no one has been burnt due to that.

 Cooling is easier in Nano as compared to some vans


and there are the air ducts on either side behind the
edge of the doors, which allow air to seep in for both
cooling & for intake.

Myth no 7

There is a shortage of storage space.

 There is some storage space although not much.

 The rear seat with parcel shelf folds to allow


accommodating a large suitcase.

 Small articles can be placed under the bonnet also.


Myth no 8

Cutting Corners is evident everywhere

 Cost cutting is done by smart designing rather than


taking out the essentials.

 One wiper has been taken out but the functionality is


intact. Wind shield washer fluid jets are mounted on
the wiper itself rather than the body.

 Wheels are held by three bolts instead of four.

 On the contrary, MRF tubeless tyres and all


Alumininium engine, have been used, which are
more expensive than conventional ones.
TATA NANO V/S MARUTI 800
Competitor

As we know the price of Nano car is much


affordable for middle class people. This car can be easily
affordable by middle class people. In the Indian market it
will face only by one competitor that is Maruti – 800,
which produced by Maruti udyog.

The real question arise who will have the


last laugh Tata or Maruti 800?

The answer is neither Tata nor Maruti 800


but they are the buyers who will have the last laugh
Can Nano beat the popularity of Maruti 800. All the things
depend on their marketing strategy that how they will
attract to Indian middle class customers.

Never mind the fact that what was touted as


a Rs.100,000 car will cost at least a fifth more and that's
for the standard non-air conditioned version.
Jagdish Khattar, a former head of Maruti 800
manufacturer Maruti Udyog Ltd, says it's too early to say
whether the Nano will overtake the original.
"It's a good product but it's still too early to
say whether it will overtake the 800 because it caters to a
totally new market segment," he said while watching a
live telecast of Tata's press conference after unveiling of
the Nano. But clearly, at least one other manufacturer
was worried.

Whether or not the Nano will overtake the


Maruti 800, one thing is for sure: the current Auto Expo
will be remembered for Tata's people's car and for that
product alone. It is the Nano that has captured the hearts
and minds of a majority of the spectators.

Price of Maruti in major city of India – 800 (a/c LPG)


(Figures in rupees)

Mumbai 245648
Delhi 228858
Bangalore 231407
Kolkata 236826
Lucknow 232542
TATA NANO V/S MARUTI 800

FEATURES OF TATA NANO COMPRAED TO MARUTI 800

COST:

 The dealer price of Maruti 800 varies from city to


city. The dealer price in Delhi is 1.97 laths and the
road price is approximately 2.28 laky Indian rupees.

 The dealer price of Nano is just 1.00 lakhs rupees


and the road price is only 1.26 lakhs rupees.

So here we can put the equation 2 * Nano = 1*


Maruti – 800
ENGINE:

 Maruti 800: – 800 cc

 Tata Nano :623 cc (better fuel than Maruti 800)

ENGINE TYPE:

 Maruti 800 – petrol/LPG

 Nano : petrol (diesel version will be later)

SEATING CAPACITY:

 Maruti 800: 4+1 person

 Nano: 4+1 person

FUEL TANK CAPACITY:

 Maruti800 : 28 Lt (petrol), 19.2 (LPG)


 Nano: 30 Lt.

WEIGHT

 Maruti 800 – more than 690 kg (gross weight is


1000 kg)

 Nano – more than 600 kg

TOP SPEED:

 Maruti 800 : 120 km/hr

 Nano : 90 km /hr

SEGMENT:

Maruti 800 – middle class people


Nano: lower and middle class people.

FUEL CONSUMPTION:
Maruti 800: city 13.6 and highway 17.6 km
Nano: city 22 km and highway 26 km
DIMENSIONS:
Maruti 800 Tata Nano
Length 3.335 meters 3.1 meters
(131.3 inch
Width 1.440 meters 1.5 meters
(56.7 inch)
Height (55.3 inches) 1.6 meters
 BREAKS:

• Maruti800: Front Disk, Rear Drum

• Nano: Front Disk, Rear Drum

 COLOURS

Maruti 800

Tata Nano:
The Nano are not much taller and broader
as compared to Maruti – 800 but it has 21 percent
larger spaces in side but 8 percent short than Maruti.
Disadvantages of NANO vs. Maruti 800
1. LPG/CNG version is doubtful.
2. Top Speed will be laser than 800.
3. Space for Language is less.

Data Collection Methods


The success of any project or market survey
depends heavily on the data collection and analysis. It is
necessary that the data collected is a reliable data in
order to achieve the research objective.

For research regarding the views of people


about Tata Nano and its comparison between Tata Nano
and Maruti 800 two types of data collection methods were
used

• Primary Data

• Secondary Data

PRIMARY DATA:
Primary data is the data, which are fresh
and collected for the first time, and are original in
character. There are various Primary Data Collection
techniques, which have helped in data gathering. This
was collected through questioner.

Questionnaires are a popular means of


collecting data, but are difficult to design and often
require many rewrites before an acceptable questionnaire
is produced.

Advantages:
 Can be posted, e-mailed or faxed.

 Wide geographic coverage.

 Relatively cheap.

 No prior arrangements are needed.

 Avoids embarrassment on the part of


the respondent.

 Respondent can consider responses.

 No interviewer bias.

Disadvantages:

 Design problems.

 Questions have to be relatively simple.

 Time delay whilst waiting for responses


to be returned.

 Several reminders may be required.

 Assumes no literacy problems.

 No control over who completes it.


 Not possible to give assistance if
required.

 Problems with incomplete


questionnaires.

Points kept in mind while preparing the


questioner

 Liberal spacing

 Length of the questioner is kept normal

 Logical Order

 Question are short, simple and to the


point; all unnecessary words are
avoided

 Close ended questions are asked so


that its easy for the respondent to fill
the questioner and also easy to analysis

 Sample population was selected on the


basis of random sampling method.
SECONDARY DATA:

Secondary data are those data, which have


been already collected or published for the purpose other
than specific research need at hand. This data is simply
used up by the researcher for his purpose of collected
data and it’s used for the same purpose. The secondary
data sources here in this project are:

Websites

Books
Various Results Of Analysis In The
Form Of Charts

%of people who are aware of tata


nano

yes
no

the % of people who are aware of the tata’s


new product – Nano car is shown with the help of pie
chart.

o Here, blue color indicates that people are aware of


tata Nano

o And red color indicates the % of people who are not


aware of tata Nano.
While analyzing the 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 and launching of this product.
Preferences Of Different Age Group Regarding
Buying Of Nano.

this chart shows the preference of different


age group to buy tata nano when it is launched.

Here on x- axis, no of respondents is given.


And on y – axis the age group is given.

o Blue triangle indicates willingness to purchase tata


Nano.

o Red triangle indicates that the respondent is not


willing to pruchase it
o And green indicates that the respondent is not sure.

While analysing this chart, we can see that


the young generation is egar to buy the product. While
due to some misunderstandings about tata nano, the
older generation doesn’t desire to buy it or are not sure
about it.
Preferences Of The Respondents Regarding
Buying Of Motor Car, Maruti 800 And Tata
Nano

this chart shows the preference of the


respondent. The question asked in the questioner was, “if
you were to buy one of the following, which would you
prefer.” the options given were:

motor bike Maruti 800 tata Nano

by having a glance at the chart, we can see


that majority went for tata Nano. Maruti 800 got very less
votes. This shows a tough time for Maruti in future.
Views about success of Nano

the question asked here was,”do you think


Nano will be successful” the options given were

yes no not sure.

It’s very interesting to note here that none


of the respondent said that Nano won’t be successful. As
shown in the chart, the portion of purple color which
shows failure is not there at all.
But again every body does not believe in its
success. As seen form the chart, 50% of the respondent
has a doubt about success of Nano.

Nano- A People’s Car !!!

in this chart, number of respondents is given


on the y axis and some features are given on x- axis.

The question asked here is, “What is it that


makes Nano a people’s car?”

By analyzing the chart, we can say that


people consider the cost factor the most for Nano
followed by the innovation. Even looks has got quite
positive reply. Nano is a product that is developed
perfectly at minimum cost without sacrificing the quality.

Some Feedbacks Based On


Questioner:

Positive Response

 I have one more angle to look at Nano. I think it is


worlds most hyped about gadget after the iPhone.
Did I just say “gadget”. Well, yes Tata Nano is not
just a car; one can also look at it like an expensive
gadget which also gives us mobility. One of the very
few cute looking gadgets that all us geeks will love,
who would generally be interested in stuff that is
sleek and powerful. I am also hopeful that Tata will
launch FCV and alternative fuel cars soon.

 I definitely would like to buy the car. Who would not


want a good car for just 100000 Rs?

 It’s just cool. One should definitely buy it.


 Cheap As it is, but very smart and sexy. I would
defiantly buy it.

 Congratulations to Mr. Rattan Tata. He did a real


good job.

Negative Response

 It is impossible to build a car at such a price. No one


has been able to do it so far. It is just not possible.

 It will be more like a scooter with a roof. I am sure no


one can make the car for the cost of two bikes.

 This car is another auto rickshaw. It will add a lot to


the traffic on road.

 It shall be a half car with no roof. I doubt if it will be


able to go up the flyovers.

 It may be an upgraded Auto-rickshaw with plastic


body. It shall be a very unsafe car as the very idea of
1 Lac car is too farfetched to be true.
 It shall never meet the emission norms. We shall
choke on the poisonous emissions from this car.

The disbelief kept piling up and up and was


further compounded by the competitors adding their
own mite to the speculations.

Mixed Response

 IT HAS NOT BEEN DONE EVER. Even the nearest car


is double the cost. Let us see what Mr. Tata can do to
maintain the price line.

 I am not very convinced but would definitely go for it


if it is safe.
 I hope I can take my family of 4 in this car. I wish
Tata's make this dream a reality.

 I know the talk is that it is a myth. However miracles


do happen. Let us wait and watch.

The reaction was a mixed one. People


wished it to be true but were very cautious about
expressing their optimism.

Conclusion

MY OPINION

After the study of various aspects I found


that –

Nano Car Is Definitely Not For:-


 Someone looking for better performance

 Someone who is looking to impress

 Someone who want to speed trial on Sunday

 Someone who is looking for long drives.

But Nano Car Is Defiantly For –

 Someone who is looking to buy a car but cannot


afford much price.

 A students who want to go college, tuition instead of


bike etc.

 Someone who depends on second hand car.

 For a house wife who can buy a car with her own
savings.

 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.
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 Nano is definitely better than


Maruti 800.

tata has succeeded in value engineering of


the product and its great success for tata’s. It’s
something on which India can feel proud of. Nano has
been developed effectively.