ABSTRACT

This project report gives an overview about the customer responses towards the various factor witch determine the sales of tata nano and how significant is launching low pricing strategy of TATANANO. This project report helps in defining various factors company should focus for establishing itself in todays competitive market. The details about the customer liking and various factors that play a major role in buying decision of the customer. This analysis was done through a sample survey conducted on 30 persons in colleges and malls & shopping area. During conducting survey various questions are asked from these respondents which provided an insight about the feasibility of various factor. Result showed that there peer liking is the least significant factor and pricing is important factor which determine the buying decision of customer.

Background of The Study

TATA plans to launch a MARKET RESEARCH to identify the important factors which will influence the buying decision of the customer. The company will focus on various marketing strategy. The company is going to launch TATA NANO. The company wants to research the possible factors which can increase or influence the sales of Tata motors. The Indian market has already witnessed the launching of different automobile in the past few years, but never before a similar launching had occurred. The present company has small market share in small car segment, they want to how cheap factor will work when they launch the Tata Nano.

Business Objectives (Need for research)

Tata is going to launch 5k INR project for which the top management of the company would want to make sure really lowest price will work in the market, so a market research is needed to augment the depth to which they can saturate the market.

Research objective
Identify the important factor which influence the buying behavior of the

customer For this following objectives are achieved during market research

Identify Indian customer buying behavior. Understand the attributes and what actually attract the customers most. Find out how price affect the customers.

Exploratory studies
Following factors affected the research

Reluctance of customers to disclose about of their financial condition. Time constraints(college, work, etc)

Research Design:
Location of the test: IBS CAMPUS Centers: Bangalore.
Sampling: Two forms of sampling are used.

Convenience sampling: The selection of the sampling units is left primarily to the interview place. Respondents are selected. Use of students, members Colleges turned out to be beneficial and less time consuming. Judgmental Sampling: This method best suits the survey as a I can use my own expertise to find out population interests, where test markets are best suited to launch a new product.

Target Groups:

Middle class customer Students

Methodology
Mainly use of Primary data. Use of Judgmental & Convenience Sampling. Use of internet.

Analysis tools used

SPSS & excel.

Information Areas
Following areas are covered to extract information relevant to the research.

Primary survey
Questionnaires hand out given to students

Secondary survey
Mainly used for understanding the customer buying behavior.

Analysis based on spss

KMO and Bartlett's Test Kaiser-Meyer-Olkin .626 Measure of Sampling Adequacy. Bartlett's Approx. 103.953 Test of ChiSphericity Square Df Sig. 15 .000

Valu of KMO statistic (.626) is also very large. Thus factor analysis is an appropriate technique for analysing the above correlation matrix. 1.
Component Matrixa Component

Service centre price accesories Peer group liking Quality service milage

1 -.886 .402 -.922 .557 .814 .396

2 .361 .541 .207 .680 -.482 .775

Communalities Above results indicate the amount of variance in each variable that it accounted for. Initial communalities are estimates of the variance in each variable accounted for by all components or factors. This is always equal to 1.0 for correlation analyses. Extraction communalities are estimates of the variance in each variable accounted for by the

components. As above tables shows that communalities in this table are all high, which indicates that the extracted components represent the variables well.this shows how much component related to attributes
Total Variance Explained Initial Eigenvalues Compone nt 1 2 3 4 5 6 Total 2.924 1.762 .721 .334 .171 .089 % of Variance 48.733 29.360 12.015 5.567 2.843 1.483 Cumulati ve % 48.733 78.093 90.108 95.674 98.517 100.000 Total 2.924 1.762 Extraction Sums of Squared Loadings % of Variance 48.733 29.360 Cumulative % 48.733 78.093 Rotation Sums of Squared Loadings % of Varianc Cumulati Total e ve % 2.663 44.386 44.386 2.022 33.707 78.093

The variance explained by the initial solution, extracted components, and rotated components is given in the above table. 2nd 3rd and 4th Column of the table shows the Initial Eigen values i.e. total variance attributed to that factor. Number of factors for that should be used in the analysis are determined based on the eegenvalues. (Only the factors with eigenvalu greater than one is retained i.e. first two factors in with eigenvalue of2.924 and 1.762). we can interpret ate from the last column that nearly 78% of the variability is explained by two extracted variables , so you can considerably reduce the complexity of the data set by using these components, with only a 22% loss of information.

2.
Rotated Component Matrixa Component

1 Service centre price accessories My group liking Service quality milage .951 -.098 .910 -.168 -.945 .019

2 -.102 .666 -.254 .863 -.039 .870

By seeing rotated component matrix it can be concluded that the first component has high coefficient for variables service centre, accessories, milage and negative coefficient for price and peer group and service quality .therefore this component can be labeled as service related factors. Here negative coefficient for price and peer group also leads to a positive interpretation as if a customer looks for service he is lest bothered about price /peer group. Second component is highly coefficient for variable economic factors. priced and negative coefficient for variable service centre, service quality, accessories. Thus component two can be labeled as

Conclusion
Indian customer is concern about the pricing and service centre . indian customers dont care about the peer pressure.

ICFAI UNIVERSITY DEHRADUN

Name: Satyajeet Chauhan

IUD No: 0901202101

IBS No: 09BS0002101

Course Code: slrm 502

Course Name: Business research method

Faculty Name: Miss. DEEPIKA MG

Topic of the Assignment: Research on pricing strategy of nano (non-field)

Student Signature Signature

Faculty