MK-101 Sec-F Group-4

Executive Summary
Highly anticipated and hyped automobile debut in India The peoples car or the 1 Lakh car promising safety and

comfort Planned to be launched in gasoline-powered version followed up by diesel versions Highly fuel efficient 22 to 26 kmpl Backed up by the big brand image of Tata Motors, the first Indian manufacturing company to be listed on the NYSE Plans to target masses focusing on the lower income segment

Marketing Plan

Market Identification Providing Value Communicating Value

Market Identification
Customer Segmentation/ Market Selection
Income distribution Middle-Income group (2-5 l.p.a.) Low-Income group (upto 2 l.p.a.) Family-Size distribution
Small family (2-4 people)

Potential substitutes Used cars 2-wheelers

Recommendation: More markets can be tapped E.g., Youth, Old and retired people, Individual members of the family

Market Identification
Customer Segmentation/ Market Selection
Youth Market Research Results

who buy

who doesn t

Market Identification
Value Positioning
Touted as the one-lakh car and peoples car The most fuel-efficient car

Market Identification
Market attractiveness
Porters 5 forces

Marketing Plan

Market Identification Providing Value Communicating Value

Providing Value

Providing Value
Product Design
Design built from scratch No compromise on components quality Streamlined modular design components serving multiple purposes No frills - AC, tachometer, airbags, etc. not provided in the base model More Boot/seating space compared to other small cars Green car complying with stricter emission norms

Recommendations: Offer more customization

Providing Value
Pricing How Nano reached the 1 Lakh figure?
Design built from scratch No legacy costs

Cut down on features Multi function parts used Reverse auctioning used 90% components outsourced; 75% of them single sourced. Low-rejection rate of parts Warranty costs went down tenfold
Low dealer margins (2-3%) and low contribution margins (15%) Taxes 12.5%

Final on road price = Rs 1,30,000 cheapest

car in the world

Providing Value
Supply Chain
Suppliers and Vendors Long-term volume contracts Majority of components outsourced/single-sourced Co-location of vendors Manufacturing/Assembly/Processing facility Initially 1 plant to be followed by addition of 3 other

Providing Value
Supply Chain
Distribution Network Different distribution channels car shipped as kits Established distribution network 200 existing Tata Motors dealers Recommendation: Increase number of dealers Service Outlets Currently, the customer service index of TATA Motors is below market average. Recommendation: Increase in number of service outlets

Marketing Plan

Market Identification Providing Value Communicating Value

Communicating Value
Promotion
Radio FM Publicity event in Malls More focus on safety risks involved with two wheelers Projecting image of Green Technology Encouraging use in rural areas