Research Project Report

On
THE STUDY INTO THE PROCESS OF PRODUCT PLANNING AND
DEVELOPMENT IN MARKETING

For the partial fulfillment of the requirement of

MASTER OF BUSINESS ADMINISTRATION

Affiliated to Uttar Pradesh Technical University, Lucknow, (U.P.)

(2013-2015)
Under The Guidance of:

Submitted by:
Mr. Ankit Kumar

Dr. Avijit Dey

Roll No.1327270012

GNIT MBA Institute

6-C, Knowledge Park-II, Greater Noida ( G. B. Nagar)

TOPICS

Institutes Certificate
Acknowledgement
Preface / Executive Summary

1. INTRODUCTION

(1-16)

2. INDUSTRY PROFILE

(17-24)

3. COMPANY PROFILE

(25-57)

4. FINANCIAL ANALYSIS OF THE COMPANY

(58)

5. DATA ANALYSIS & INTERPRETATION OF DATA

(59-70)

6. FINDINGS

(71)

7. CONCLUSIONS

(72-73)

8. SUGGESTIONS

(74)

9. LIMITATIONS OF THE STUDY

(75)

10. APPENDICES

(76-83)

11. BIBLIOGRAPHY

(84)

ACKNOWLEDGEMENT
I feel an immense pleasure in taking this opportunity to express my sincere thanks and deep
gratitude towards my honourable guide Dr. Avijit Dey, for designing of the project and being a
constant source of inspiration and guidance. It has been a great privilege for me to his constant
encouragement, meticulous guidance and invaluable counsel throughout the conduct of the
project.
I shall be failing in my duty if I do not acknowledge my thanks to DR. SAVITA MOHAN,
DIRECTOR, GNIOT MBA INSTITUTE, without whose guidance and cooperation would
havent been successfully accomplished.

DATE:

ANKIT KUMAR

EXECUTIVE SUMMARY
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.
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.

1. INTRODUCTION

History of Product Planning:

Modern production planning methods and tools have been developed since late 19th century.
Under Scientific Management, the work for each man or each machine is mapped out in advance
(see image). The origin of production planning back goes another century. Kaplan (1986)
summarized that "the demand for information for internal planning and control apparently arose
in the first half of the 19th century when firms, such as textile mills and railroads, had to devise
internal administrative procedures to coordinate the multiple processes involved in the
performance of the basic activity (the conversion of raw materials into finished goods by textile
mills, the transportation of passengers and freight by the railroads.
Herrmann (1996) further describes the circumstances in which new methods for internal
planning and control evolved: "The first factories were quite simple and relatively small. They
produced a small number of products in large batches. Productivity gains came from
using interchangeable parts to eliminate time-consuming fitting operations. Through the late
1800s, manufacturing firms were concerned with maximizing the productivity of the expensive
equipment in the factory. Keeping utilization high was an important objective. Foremen ruled
their shops, coordinating all of the activities needed for the limited number of products for which
they were responsible. They hired operators, purchased materials, managed production, and
delivered the product. They were experts with superior technical skills, and they (not a separate
staff of clerks) planned production. Even as factories grew, they were just bigger, not more
complex."
About production planning Herrmann (1996) recounts that "production scheduling started simply
also. Schedules, when used at all, listed only when work on an order should begin or when the
order is due. They didn't provide any information about how long the total order should take or
about the time required for individual operations.
In 1923 Industrial Management cited a Mr. Owens who had observed: "Production planning is
rapidly becoming one of the most vital necessities of management. It is true that every

establishment, no matter how large or how small has production planning in some form ; but a
large percentage of these do not have planning that makes for an even flow of material, and a
minimum amount of money tied up in inventories.

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

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

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.
Companies also find good ideas by researching competitors products and services. They can
find out what the customers like or dislike about their competitors 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.

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.
Companys 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.
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:
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 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 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.

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

Gamma Testing:
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.

Research objectives

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 Tatas one lakh car

o To study and compare between Tata Nano and Maruti 800

To study on customers buying behavior and preferences and views about Tata Nano and Maruti
800 by various methods of data collection.

RESEARCH METHODOLOGY
Research methodology is simple framework or plan for the study that is as guide in collection
and analyzing the data. It is the blue print that is followed in completes the study. Thus, good
research methodology ensures the completion of project efficiency and affectivity. Since there
are many aspect of research methodology, the line of action has to be chosen from the variety of
alternatives, to choose the suitable method through the assessment from various alternatives.
Research methodology gives the researcher an opportunity to put forward his argument for
having opted for certain alternatives and also at the same time he can justify his ruling out some

other possibility likes. Why research study has been undertaken, how the research problem has
been formulated what data has been collected, what particular technique if analyzing the data has
been used and lot of similar type question are usually answered when we talk of research
problem in study.

Sample Design: 69 responsdents

Sample Composition:

Youth

Service Class

Housewives

The details of the methodology adopted are presented below:

The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and tested on few
employees. After getting the proper response and sanction from the concerned department the
questionnaire was finalised.

PRIMARY DATA
Market Survey.
Personal Interview.

SECONDARY DATA
Magazines.
Internet.

Business Journal.

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 its used for the same purpose. The secondary data sources here in
this project are:
Websites
Books

2. INDUSTRY PROFILE
The automobiles sector is compartmentalized in four different sectors which are as follows:

Two-wheelers which comprise of mopeds, scooters, motorcycles and electric twowheelers

Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose
vehicles

Commercial Vehicles that are light and medium-heavy vehicles

Three Wheelers that are passenger carriers and goods carriers.

The automobile industry is one of the key drivers that boosts the economic growth of the
country. Since the de-licensing of the sector in 1991 and the subsequent opening up of 100
percent FDI through automatic route, Indian automobile sector has come a long way. Today,
almost every global auto major has set up facilities in the country.
Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson from
the US and Mahindra & Mahindra have set up manufacturing bases in India. Furthermore,
according to internal projections by Mercedes Benz Cars, India is set to become Mercedes
Benzs fastest-growing market worldwide ahead of China, the US and Europe.
As per the data published by Department of Industrial Policy and Promotion (DIPP), Ministry of
Commerce, Government of India, the cumulative FDI inflows into the Indian automobile
industry during April 2000 to October 2013 was noted to be US$ 9,079 million, which amounted
to 4% of the total FDI inflows in terms of US $. The production of compact superbikes is also
expected to take place in India. The country has a mass production base of 16 million two-

wheelers and the several global as well as Indian bike makers are looking forward to use it as an
advantage in order to roll out sports bikes in the 250 cc capacity.
The world standing for the Indian automobile sector, as per the Confederation of the Indian
industry is as follows:

Largest three-wheeler market

Second largest two-wheeler market

Tenth largest passenger car market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment

However, the year 2013-2014 has seen a decline in the industrys otherwise smooth-running
growth. High inflation, soaring interest rates, low consumer sentiment and rising fuel prices
along with economic slowdown are the major reason for the downturn of the industry.
Except for the two-wheelers, all other segments in the industry have been weakening. There is a
negative impact on the automakers and dealers who offered high discounts in order to push
sales. To match the decline in demand, automakers have resorted to production cuts and lay-offs,
due to which capacity utilization for most automakers remains at a dismal level.
Despite the comprehensive market being under extreme burden, the luxury car market has
observed a robust double-digit hike during the year 2013-2014, as a result of rewarding new
launches at compelling lower price points. Further, with the measured increases in the price of
diesel, the overall market continues to shift towards petrol-fuelled cars. This has lead to the
growth in sales of the 'Mini' segment of the PV market by of 5.5%
Factors determining the growth of the industry

Fuel economy and demand for greater fuel efficiency is a major factor that affects
consumer purchase decision that will bring leading companies across two-wheeler and fourwheeler segment to focus on delivering performance-oriented products.

Sturdy legal and banking infrastructure

Increased affordability, heightened demand in the small car segment and the surging
income of the Indian population
India is the third largest investor base in the world
The Government technology modernization fund is concentrating on establishing India as
an auto-manufacturing hub.
Availability of inexpensive skilled workers
Industry is perusing to elevate sales by knocking on doors of women, youth, rural and
luxury segments
Market segmentation and product innovation

Employment Opportunities
There are a wide range of jobs available in the automobile industry. With the number of vehicles
available on the road today, the need and requirement for people who can fix these machines is
fast increasing. Careers like automobile technician, car or bike mechanics are a great option.
Becoming a diesel mechanic is also a significant alternative. Diesel mechanics are responsible
for repairing and servicing diesel engines. As they are also required to repair engines of trucks
and buses, other than cars, they are provided with hefty wages.
If communication with people instead of repairing cars is what interests you, then you have the
opportunity of becoming a salesperson or sales manager in an automobile company. Career
opportunities in automobile design, paint specialists, job on the assembly line and insurance of
vehicles is also available.
Employment Trends
The Automotive Mission Plan for the period of 2006-2016 aims to make India emerge as a global
automative hub. The idea is to make India as the destination choice for design and manufacture
of automobiles and auto components, with outputs soaring to reach US$ 145 billion which is
basically accounting for more than 10% of the GDP. This would also provide further
employment to over 25 million people by 2016 making the automobile the sunrise sector of the
economy.

According to the Confederation of Indian Industry, the automobile sector currently employs over
80 lac people. An extension in production in the automobile industry is forecasted, it is likely to
rise to Rs. 600000 crore by 2016.
Future Trends in the Automobile Industry
As the auto-shows began in January 2014, the industry promised a blend of technology and
automotives. With the recession trend breaking its leashes form the past two years, 2014 is
expected to get back on track with the sales of automobiles in the country.

Almost Self-governing cars are predicted to be on the streets by 2020

More than half the cars on the streets are going to be powered by diesel by 2020

Industry watcher Gartner indicates that 30 percent of motorists want parking info. The
facility is likely to come up after glitches in the infrastructure catch up.

High Performance Hybrid cars are likely to gain greater popularity among consumers.

The Indian automobile industry has a prominent future in India. Apart from meeting the
advancing domestic demands, it is penetrating the international market too. Favoured with
various benefits such as globally competitive auto-ancillary industry; production of steel at
lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centres etc., the
industry provide immense investment and employment opportunities.
With a scintillating 2.3 million units produced in 2008 the Indian automobile industry bagged the
position of being the ninth largest in the world. Following economic liberalization, Indian
domestic automobile companies like Tata Motors Maruti Suzuki and Mahindra and Mahindra
expanded their production and export operations in and across the country and since then the
industry has only shown signs of growth. The automobile industry comprises of heavy vehicles
(trucks, buses, tempos, tractors), passenger cars, and two-wheelers.
The Indian automobile industry seems to come a long way since the first car that was
manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the
country contributing majorly to the economy of India. It directly and indirectly provides
employment to over 10 million people in the country. The Indian automobile industry has a well
established name globally being the second largest two wheeler market in the world, fourth
largest commercial vehicle market in the world, and eleventh largest passenger car market in the
world and expected to become the third largest automobile market in the world only behind USA

and China.
The growth of the Indian middleclass along with the growth of the economy over the last few
years has resulted in a host of global auto giants setting their foot inside the Indian Territory.
Moreover India also provides trained manpower at competitive costs making the country a
manufacturing hub for many foreign automobile companies. India proves to be a potential
market as compared to most of the other countries which are witnessing stagnation as far as
automobile industry growth is concerned.
A recent research conducted by the global consultancy firm Deloitte says that at least one Indian
automobile company will feature among the top six automobile companies that will dominate the
car market by 2020.
The Indian automobile industry proved to be in good shape last year even after the economic
downturn. This was majorly due to the fact of renewed interest shown by global automobile
players like Nissan Motors which consider India to be a potential market.
As far as authorized dealer networks and service stations are concerned Maruti Suzuki is the
most widespread. The other automobile companies are also showing rapid progression in this
field.

Indian Automobile Export market

India is a very favorable market for small cars be it production, sales or export. Since the Indian
automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan
Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest
exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile
exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows:
Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by 19.10 percent.

Key automobile manufactures in India

Maruti Udyog

General Motors

Ford India Limited

Eicher Motors

Bajaj Auto

Daewoo Motors india

Hero Motors

Hindustan Motors

Hyundai Motors India Limited

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Limited

Indian Automobile Industry Growth 2009

Gaining from Government stimulus packages, more demands and lower interest rates on
automobile loans the Indian automobile industry witnessed a phenomenal growth of 26.41 per
cent in the year 2009. Segment wise cars posted a growth of 25.10 percent and two wheelers
sales grew by 26 percent. The year 2009 actually turned out to be one of the best years in the
history of the automobile industry in India. If the trend continues the same way then Indian will
soon become the second fastest growing automobile market in the world only after China.
Domestic Market Share for 2009 - 2010
Automobiles

Market Share

Passenger Cars

15.86 %

Commercial Vehicles

4.32 %

Two Wheelers

3.58 %

Two Wheelers

76.23 %

Market Size
The growth story for the Indian automobile industry in 2014 rode on the two-wheeler segment.
The segment has clocked positive growth at 12.9 percent year-on-year to reach sales of nearly
13.5 million units by October 2014.

India's automobile sector has also picked up pace, with eight of the country's leading
manufacturers' reporting combined passenger vehicle sales of 198,427 in November 2014, a 10
per cent annual rise. The rise in sales in November 2014 was led by Maruti Suzuki, whose sales
increased 17 per cent to 100,024 units in the domestic market.
The commercial vehicles (CV) industry in India has registered an increase of 8.59 per cent in
September 2014, as fleet owners have started to buy trucks in the anticipation of an improved
economic activity.
The automobile sector in Andhra Pradesh has a potential for US$ 1 billion investment and US$
1.50 billion output, according to a recent analysis by Automotive Components Manufacturers
Association of India (ACMA) and city-based Andhra Chamber of Commerce and Industry
Federation (ACCIF).

Investments
To match production with demand, many auto makers have started to invest heavily in various
segments in the industry in the last few months. The industry has attracted FDI worth US$
11,351.26 million during the period April 2000 to November 2014, according to the data released
by Department of Industrial Policy and Promotion (DIPP).
Some of the major investments and developments in the automobile sector in India are as
follows:
Snapdeal.com has entered into a partnership with Hero MotoCorp Ltd to sell twowheelers and expect its online automobile sales to generate Rs 1,000 crore (US$ 162.33
million) of business in next six to 10 months.
Automotive supplier Uno Minda and Japans Toyoda Gosei Co Ltd have announced a
joint venture (JV) partnership to manufacture and sell rubber hoses to automobile makers
in India. The JV will be set up with a total investment of Rs 85.3 crore (US$ 13.84
million) in a phased manner.
Tafe Motors and Tractors Ltd (TAFE) has invested around US$ 140 million by way of
equity in the US-based AGCO Corporation, a worldwide manufacturer and distributor of
agricultural equipment.
Flipkart founders Mr Sachin Bansal and Mr Binny Bansal have led a US$ 1 million
investment in Ather, an electric vehicle start-up focused on designing high-speed electric
two-wheelers.
Harley Davidson Motor Co. has expanded their line up in India as it has launched three
new models the Breakout, Street Glide and CVO limited edition.
Hero Electric is looking for merger and acquisition (M&A) options or technology tie-ups
to encourage its next generation electric vehicle technology.

Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows 100
per cent FDI under the automatic route. To boost manufacturing, the government had lowered
excise duty on small cars, motorcycles, scooters and commercial vehicles to eight per cent from
12 per cent, on sports utility vehicles to 24 per cent from 30 per cent, on mid-segment cars to 20
per cent from 24 per cent and on large-segment cars to 24 per cent from 27 per cent.
Some of the major initiatives taken by the Government of India are:
The governments decision to resolve VAT disputes has resulted in the top Indian auto
makers namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and Tata Motors
announcing an investment of around Rs 11,500 crore (US$ 1.86 billion) in Maharashtra.
The Automobile Mission Plan for the period 20062016, designed by the government is
aimed at accelerating and sustaining growth in this sector. Also, the well-established
Regulatory Framework under the Ministry of Shipping, Road Transport and Highways,
plays a part in providing a boost to this sector.
The Government of India-appointed SIAM and Automotive Components Manufacturers
Association (ACMA) are responsible in working for the development of the Indian
automobile industry.
The government plans to come out with policies to introduce clean fuels such as
biodiesel, bioethanol and electricity for public transport vehicles and school buses in big
cities to tackle air pollution.
The Lok Sabha passed the Motor Vehicles Amendment Bill, 2014, paving the way for
regularisation of e-rickshaws.
The government has set up National Automotive Testing and R&D Infrastructure Project
(NATRiP) at a total cost of US$ 388.5 million to enable the industry to be on par with
global standards.

Road Ahead
India is probably the most competitive country in the world for the automotive industry. It does
not cover 100 per cent of technology or components required to make a car but it is giving a

good 97 per cent, highlighted Mr Vicent Cobee, Corporate Vice-President, Nissan Motors
Datsun.
The vision of AMP 2006-2016 sees India, to emerge as the destination of choice in the world for
design and manufacture of automobiles and auto components with output reaching a level of
US$ 145 billion; accounting for more than 10 per cent of the GDP and providing additional
employment to 25 million people by 2016.
Exchange Rate Used: INR 1 = US$ 0.0162 as on January 21, 2015

3. COMPANY PROFILE

Introduction To Tata Motors:

Tata Motors was established in 1945, when the company began

making trains.
It has its manufacturing base in Jamshedpur,

o
Lucknow, Pune and

soon one more plant is going to established at Singur,

West Bengal.
o

Product Manufactured - Passenger Cars and

commercial

vehicle
o

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

Investment - Rs 2,500 crore (Rs 25 billion)

Turnover - $21.9 billion (Rs 967,229 million)

Employees - 2,46,000/22001

Tata Motors had created the wealth Rs. 320 billion during 20012006 and stood among top 10 wealth creators in India.

Tata Nano - ONE LAKH CAR PROJECT Peoples Car

Tata Nano

Overview
Manufactur Tata Motors
er
Also called one-lakh car
Production 2008present
Assembly

Sanand Plant, Sanand, Gujarat,

India[1]

Designer

Girish Wagh, Justin Norek, Pierre

Castinel[2]
Body and chassis

Class

City car

Body style 4-door one-box

Layout

RR layout

Powertrain
Engine

2 cylinder SOHC petrol Boschmultipoint fuel injection (singleinjector) all

aluminium 420 cc(26 cu in)

Transmissi 4
on

speed synchromesh manual withover

drive in 4th
Dimensions

Wheelbase 2,230 mm (87.8 in)[3]

Length

3,099 mm (122.0 in)[3]

Width

1,495 mm (58.9 in)[3]

Height

1,652 mm (65.0 in)[3]

Kerb weigh 600 kg (1,300 lb)635 kg (1,400 lb)[3]

t

The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano was
initially launched with a price tag of 100,000 (US$1,600) which was ultimately increased with
time. Designed to lure India's burgeoning middle classes away from two-wheelers, it received
much publicity.

History
After having successfully launched the low cost Tata Ace truck in 2005, Tata Motors began
development of an affordable car that would appeal to the many Indians who ride
motorcycles. The purchase price of this no frills auto was brought down by dispensing with most
nonessential features, reducing the amount of steel used in its construction, and relying on low
cost Indian labour.
The introduction of the Nano received much media attention due to its low price.

Expectations and effects

Expectations created for the car during the run up to its production may have been out of
proportion with its realised success. A 2008 study, by Indian rating agency CRISIL, thought the
Nano would expand the nation's car market by 65% but, as of late 2012, news reports have
detailed the underwhelming response of the Indian consumer to the offering; sales in the first two
fiscal years after the car's unveiling remained steady at about 70,000 units although Tata appears
intent on maintaining a capacity to produce the car in much larger quantities, some 250,000 per
year, should the need arise.
It was anticipated that its 2009 debut would greatly affect the used car market, and prices did
drop 2530% prior to the launch. Sales of the Nano's nearest competitor, the Maruti 800, fell by
20% immediately following the unveiling of the Nano.[9] It is unknown if the Nano has had a
lasting effect on the prices of and demand for close substitutes, however. In July 2012, Tata's
Group chairman Ratan Tata, who retired in January 2014, said that the car had immense potential
in the developing world while admitting that early on opportunities were wasted due to initial
problems.
Singur factory pullout
Main article: Tata Nano Singur controversy
Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West
Bengal.] Local farmers soon began protesting the forced acquisition of their land the new factory
entailed. Tata first delayed the Nano launch and later decided to build the car in a different
state, Gujarat, instead.
Price
Announced as the most affordable production car in the world, Tata aimed for a price of
one lakh rupees, or 100,000, which was approximately $2,000 US at the time.[13] Only the very
first customers were able to purchase the car at that price, however, and, as of 2012, the price for
the basic Nano is around 150,000.[14] Increasing material costs may be to blame for this rapid
rise in price.[15]
Compared to the Volkswagen Beetle it has a relatively low price, however. In 1990, a Beetle
from Mexican factories was priced at $5,300,[16] about $9,567 in today's money. The Ford Model
T's initial price was about $850, equivalent to $22,311 today.
The second-generation Nano is expected to be sold in the United States by 2015. The original
Nano is not street legal in the US, and cannot legally be sold as a grey market import until 2034,
when the original 2009 models receive a 25-year exemption from the US Customs and Border
Protection. Despite a readily-available dealership network in the US through the Jaguar Land
Rover division of Tata, Tata Motors won't use Jaguar Land Rover to sell the Nano.

Cost-cutting features

Tata Nano engine in trunk that's only accessible from inside as a cost reduction feature

Tata Nano dashboard is very simple. CD player and radio on this deluxe model

The car's exterior and interiors were designed at Italy's Institute of Development in Automotive
Engineering.[4]
The Nano's design implements many measures to reduce manufacturing costs.
Comparison with the Maruti 800, the Tata Nano's closest competitor:
Tata Nano

Maruti 800

* Maruti 800 initially had only an opening

* The Nano's trunk is only accessible from inside
rear-windscreen, but later got a full
the car, as the rear hatch does not open.[21]
hatchback.

* One windscreen wiper instead of the usual pair

(also seen earlier on certain Citroen and
Mercedes models)[5]

* Two windscreen wipers.

* No power steering initially, unnecessary due to

its light weight.[5] Added in higher variants in
later models.

* Power Steering only in higher variants.

* Three lug nuts on the wheels instead of the

usual four (also seen on Smart)[22]

* Four lug nuts per wheel.

* Only one wing mirror on base models. Higher

variants fitted with passenger side ORVM from
2012 onwards.[5]

* No option for both side ORVMs in any

variant.

* Radio or CD player is optional (the idea picked

on some basic car models in North America and
all basic cars in India)[5]

* Radio/CD Player is optional.

* No airbags on any model[23]

* no airbag in any variant.

* 624cc rear engine has 2 bigger cylinders

(312cc each)[5]

* 800cc front engine has 3 smaller

cylinders (266cc each).

* No air conditioning in base model (as on most

* No air conditioning in base model
basic car models in Europe and North America)[5]

* Front passenger seat same as the driver seat,

and the headrests are integrated.

* Front passenger seat same as the driver

seat, but headrests separate. Later models
switched to integrated headrests.

* Thinner 135/70-R12 space saver spare tyre.

* Full size spare tyre.

* No external fuel filler cap. Fuel inlet is

accessed by opening the front hood.

* External fuel filler cap.

* Front door power windows only offered on

highest variant. PW switches placed on central
console rather than on door pads.

* Front door power windows only offered

on highest variant.

Technical specifications
The Nano (2012) is a 38 PS (28 kW; 37 hp) car with a two-cylinder 624 cc rear engine.
The car complies with Bharat Stage 4 Indian Emissions Standards, which are roughly equivalent
to Euro 4 and can meet European emission standards as well.
The development of the Nano had led to 31 design and 37 technology patents being filed.
Engine:

2 cylinder petrol with Bosch multi-point fuel

injection (single injector) all aluminium 38 metric
horsepower (28 kW) 624 cc(38 cu in)

Value Motronic engine management

platform from Robert Bosch GmbH

2 valves per cylinder overhead camshaft

Compression ratio: 9.5:1

bore stroke: 73.5 mm (2.9 in) 73.5 mm (2.9 in)

Power: 38 PS (28 kW; 37 hp) @ 5500 +/-500 rpm

Torque: 51 Nm (38 ftlbf) @ 3000 +/-500rpm

Layout and
Transmission

Rear wheel drive

4-speed manual transmission

Steering

mechanical rack and pinion w/o servo

Turning radius: 4 metre

Performance

Acceleration: 0-60 km/h (37 mph): 30 seconds

Maximum speed: 105 km/h (65 mph)

Fuel efficiency (overall): 25.35 kilometres per litre

(4.24 litres per 100 kilometres (66.6 mpg-imp;
55.5 mpg-US))

Body and
dimensions

Seat belt: 4

Trunk capacity: 150 L (5.3 cu ft)

Suspension,
Tires & Brakes

Front brake: 180 mm drum

Rear brake: 180 mm drum

Front track: 1,325 mm (52.2 in)

Rear track: 1,315 mm (51.8 in)

Ground clearance: 180 mm (7.1 in)

Front suspension: MacPherson strut with lower A arm

Rear suspension: Independent coil spring

12-inch wheels[26]

Supplier[27]

Part/system[27]

Texspin

Clutch Bearings

Bosch

Oxygen sensor, Gasoline injection system (diesel will

follow), starter, alternator, brake system

Continental AG

Gasoline fuel supply system, fuel level sensor

Caparo

Inner structural panels

HSI AUTO

Static sealing systems (Weather Strips)

Delphi

Instrument cluster

Rane Madras
Limited

Steering Assembly

Denso

Windshield wiper system (single motor and arm)

FAG Kugelfischer

Rear-wheel bearing

Federal-Mogul

Pistons, Piston rings, Spark plugs, Gaskets, Systems

protection

Ficosa

Rear-view mirrors, interior mirrors, manual and CVT

shifters, washer system

Freudenberg

Engine sealing

GKN

Driveshafts

INA

Shifting elements

ITW Deltar

Outside and inside door handles

Johnson Controls

Seating

Mahle

Camshafts, spin-on oil filters, fuel filters and air

cleaners

Saint-Gobain

Glass

TRW

Brake system

Ceekay

Clutch sets

Daikin/Valeo

Vibracoustic

Engine mounts

Visteon

Air induction system

ZF Friedrichshafen
Chassis components, including tie rods
AG

Behr

HVAC for the luxury version

Drr

Lean Paint Shop

The Tata Nano is also considered to be the world's slowest Petrol Car.
Alternative powerplants
While the Nano is driven by a petrol engine, several more-radical powerplants have been
proposed but not put into production. Also, an upscale version was shown at an autoshow.

Compressed-air engine
Tata Motors signed an agreement in 2007 with a French firm, Motor Development International,
to produce a compressed air car Nano. While the vehicle was supposed to be able to travel
approximately 200 kilometres (120 mi) on $3 US of electricity to compress the air, Tata's VicePresident of Engineering Systems confirmed in late 2009 that vehicle range continues to be a
problem.

Electric vehicle

Tata has discussed the possibility of producing an electric version, and while it showcased
an electric vehicle Nano at the 2010Geneva Motor Show, no such car is currently on the market.
If an EV Nano is sold it is expected to be the highly affordable electric car, use lithiumion batteries, and have a range of 80 miles (130 km). A Norwegian electric car
specialist, Miljbil Grenland AS, has been named as a supposed partner in the project.
Bi-fuel variant
The Nano CNG emax is launched in October 2013. It can run on either gasoline or compressed
natural gas. Initially, it will be sold in Delhi and parts of Maharashtra and Lucknow, where CNG
is available at fuel outlets.
Tata Nano AMT
Tata Motors is planning to launch the Nano AMT variant to be launched in the second half of
2015. The Tata Nano AMT variant will get better quality plastic, electric power assisted steering,
front power windows, newly designed instrument cluster and better upholstery on seats. It also
features the open-able tailgate, which helps in adding to its luggage space. Under the bonnet is
the same 2-cylinder 624cc engine that churns out a maximum power output of 36PS and a peak
torque of 51Nm

European export

A Nano Europa concept car

An upscale Nano concept car called the Europa was shown at the 2009 Geneva Motor Show.
Car fires
There were reports of several fire incidents involving the Nano.] The company denied those were
connected to the car's design or its parts and blamed "foreign electrical equipment" found on top
of the exhaust system. The company offered to retrofit the exhaust and electrical systems but

refused to recall the cars. Tata extended the warranty on the car, including those already sold,
from 18 months to four years in early December 2010.
Reception
The Nano has received a tepid reception from Indian consumers. Reasons given have included
that it is still too expensive compared with a motorcycle. Also it is identified as the most
affordable car, whereas a secondhand car that was more expensive when new has more social
cachet. The fires and other safety issues have also been nominated.
Still, Tata Nano has managed to fulfill the dream of Ratan Tata due to its economic affordability.
After a cap on Maruti 800 production, Tata Nano has become as a lone bystander in the range of
affordable cars to common man in India.

Crash safety
In 2014 a Nano was crashed for NCAP by ADAC in Germany. Despite Tata's claim that it was
expecting 4 stars, the Nano actually achieved zero stars.
Sales
Nominal factory output is 250,000 pa
FY 20092010 30,000 approx
FY 20102011 70,432
FY 20112012 74,527
FY 20122013 53,848
FY 20132014 first half (April to Sept.) 10,202
Awards

2010 Business Standard Motoring Indian car of the year

2010 Bloomberg UTV-Autocar car of the year

2010 Edison Awards, first place in the transportation category

2010 Good Design Awards,in the category of transportation

2014 India's Most Trusted hatchback car according to the The Brand Trust Report 2014
edition.

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 Delhi. The Nano project didnt grab
the attention of only Indians; the entire world had their eyes glued to the worlds cheapest car.
A truly Peoples 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
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.

This will result into:

OLD GENERATION

NEW GENERATION

SWOT Analysis
STRENGTH
Brand name TATA
Cost price low
Fuel efficient
Safe

WEAKNES
Low power

 Not a status symbol

Delay in manufacturing
Limited features

OPPORTUNITIES
Large market for selling
Awareness in the market
First car in low range
Can hit in global market
THREATS
Company rival
Not sure to hit in rural and semi-urban areas

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 its 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 todayan 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 Nanoon average aged between 25
and 30has 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 peoples car it should be a car and not something
that people would say, Ah! Thats 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 didnt 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 involveddesigners, manufacturing
teams, and vendor development peoplebe there to accelerate decision-making and problemsolving. 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 designerhe 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 peoples 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 4wheeler 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 was launched in the month of April. It has been commercialized in whole of India. It is
mostly targeted to the middle class and lower middle class people. The effect of Nano has seen
over the period of time.

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, its 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
Its 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)
Mumbai
Delhi
Bangalore
Kolkata
Lucknow

245648
228858
231407
236826
232542

(Figures in rupees)

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
Length
3.335 meters (131.3 inch
Width
1.440 meters (56.7 inch)
Height
(55.3 inches)
BREAKS:
Maruti800: Front Disk, Rear Drum
Nano: Front Disk, Rear Drum

Tata Nano
3.1 meters
1.5 meters
1.6 meters

 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.

Particulars
lakh car Maruti 800

Tatas one

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.

4. FINANCIAL ANALYSIS OF THE COMPANY

Tata Motors was established in 1945, when the company began

making trains.
It has its manufacturing base in Jamshedpur,

o
Lucknow, Pune and

soon one more plant is going to established at Singur,

West Bengal.
o

Product Manufactured - Passenger Cars and

commercial

vehicle
o

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

Investment - Rs 2,500 crore (Rs 25 billion)

Turnover - $21.9 billion (Rs 967,229 million)

Employees - 2,46,000/22001

Tata Motors had created the wealth Rs. 320 billion during 2001-2006 and stood among top 10
wealth creators in India.

5. DATA ANALYSIS

We planned to start the analysis part by flow of question in the questionnaire

1. What do you own presently?
Car
Bike
Other

ownpresently

Valid

car
bike
car and bike
others
Total

Frequency
26
17
19
7
69

Percent
37.7
24.6
27.5
10.1
100.0

Valid Percent
37.7
24.6
27.5
10.1
100.0

Cumulative
Percent
37.7
62.3
89.9
100.0

From the 69 respondents 26 of them owned only car which is 37.7%, 17 respondents owned only
bikes, contributed to 24.6% and there were 19 such respondents who owned car as well as bikes,
contributes to 27.9%, 7 respondents were there who didnt had a car or a bike, who traveled in
bus or in autorikshaw or owned autorikshaw.

2. If car then, what type of car do you own?

Small

Sedan

SUVs

Premium

Type of car

Valid

Missing

Frequency
21
12

Percent
30.4
17.4

Valid Percent
46.7
26.7

Cumulative
Percent
46.7
73.3

SUVs

13.0

20.0

93.3

Premium

1.4

2.2

95.6

1.4

2.2

97.8
100.0

Small
Sedan

small and
SUVs
Small and
sedan
Total

1.4

2.2

45

65.2

100.0

System

24

34.8

69

100.0

Total

The car owners were asked to specify there car, i.e. class wise. This showed that maximum were
the small car owners and contributed to 46.7% of the total.

3. If bike then, what type of bike do you own?

Economic

Premium

Type of bike

Valid

Missing
Total

Frequency
17
21

Percent
24.6
30.4

Valid Percent
44.7
55.3

Total

38

55.1

100.0

System

31

44.9

69

100.0

economic
premium

Cumulative
Percent
44.7
100.0

The bike owners were asked to categorize their bikes in two categories namely economic and
premium.

4. In car which brand do you own? (Please specify brand model)

Maruti Suzuki: ____19%_______________________

Hyundai: ________10%___________________
Tata: ____6%_______________________
Ford: __________3%_________________
Other Brand: _______10%_____________

Brand Preference

Maruti Suzuki
Hyundai
Tata
Ford
Other Brand

Interpretation
When the car owners were asked to specify the brand, as known Maruti holds the major market
share, 19 respondents owned Maruti, 10 respondents owned Hyundi, 6 owned Tata, 3 owned
Ford and 10 owned different brand cars.

\
5. Do you intend to buy a car in next 1 year?

Definitely will buy

Probably will not buy

probably will buy

definitely will not

May or may not buy

Intend to buy a car in next 1yr

Valid

Frequency
9
22

Percent
13.0
31.9

Valid Percent
13.0
31.9

Cumulative
Percent
13.0
44.9

may or may not buy

13

18.8

18.8

63.8

probably will not buy

10

14.5

14.5

78.3

def will not buy

15

21.7

21.7

100.0

Total

69

100.0

100.0

definitely will buy

probably will buy

When we asked the respondents weather they will be buying a car in coming one year, we got a
very mixed up response, where 13% of the respondents said thy will definitely buy a car, and
21.7% said they will not be buying a car. The rest were not sure with yhere decision.

6. Will you be interested in buying TATA NANO car? (If yes go to Q.no:7,if not go to Q.no:8)
Yes
No

Interested in buying TATA NANO

Valid

yes
no
Total

Frequency
35
34

Percent
50.7
49.3

Valid Percent
50.7
49.3

69

100.0

100.0

Cumulative
Percent
50.7
100.0

A straight question, will you be buying TATA NANO, we thought that we would receive a
good positive response, but to our astonishment, the response was almost 50/50.

7. What intended you to think to buy NANO in future?

Price
mileage
maintenance

safety

service

What intended you to buy TATA NANO

Valid

Missing
Total

Frequency
18
5

Percent
26.1
7.2

Valid Percent
51.4
14.3

Cumulative
Percent
51.4
65.7

price,milage,service

1.4

2.9

68.6

price,milage,mainten
ance

1.4

2.9

71.4

price,maintanance

1.4

2.9

74.3

price,milage

8.7

17.1

91.4

price,milage,maint,se
rvice,safety

1.4

2.9

94.3

price,safety

100.0

Price
price and service

2.9

5.7

Total

35

50.7

100.0

System

34

49.3

69

100.0

35 respondents were willing to buy TATA NANO, and the major factor was PRICE, which
inspired them to think for TATA NANO.
8. What intended you not to buy NANO?

______________________________________________________________________________
______________________________________________________________________________
_____________________________________________
Most common answers given for this question are:
1) Size, Safety, and Performance- 32%
2) Price and Status- 40%
3) Traffic and Not need- 28%

Buying Intention

Size, Safety &

Performance
Price & Status
Traffic & No Need

Interpretation
The people who were not aware about TATA NANOs specifications they were saying about size,
safety and performance. Persons who were from high income group were saying about price and
status. The middle income group people who are qite satisfied with the public transport said I
would increase traffic problem or its not needed at this point in their lif

9. What do you feel about TATA NANO will perform in the market?
Highly successful
Successful
neither successful nor unsuccessful
Unsuccessful
highly unsuccessful

What do you feel about TATANANO will perform in the market

Valid

Frequency
11
33

Percent
15.9
47.8

Valid Percent
15.9
47.8

Cumulative
Percent
15.9
63.8

20

29.0

29.0

92.8

unsuccessful

4.3

4.3

97.1

highly unsuccessful

2.9

2.9

100.0

69

100.0

100.0

highly successful
successful
neither successful
nor unsuccessful

Total

On the success matter when we asked them 63.8% of the respondent said that TATA NANO will
be a success and 7.2% said it will be unsuccessful, where as 29% of the respondent were clue
less.

10. What do you perceive TATA NANO in terms of safety?

Definitely will be good
probably will be good
may be good
Probably will not be good
definitely will not be good

May or

What do fell in terms of safety

Valid

def will be good

probably will be good

Frequency
10
19

Percent
14.5
27.5

Valid Percent
14.5
27.5

Cumulative
Percent
14.5
42.0

may or may be good

15

21.7

21.7

63.8

17

24.6

24.6

88.4

11.6

11.6

100.0

69

100.0

100.0

probably will not be

good
def will not be good
Total

42% of the respondents had faith in Tata and said the car will be good at the safety parameters,
where as 37.2% of respondents felt that it will not be good at safety parameters.

11. Do you think TATANANO will increase traffic problem?

Yes
No

Will increase traffic problem

Valid

yes
no
Total

Frequency
47
22

Percent
68.1
31.9

Valid Percent
68.1
31.9

69

100.0

100.0

Cumulative
Percent
68.1
100.0

There were only 31.9% of the respondents who said it will not increase the traffic but rest of
them felt that it will increase the traffic problem.

6. FINDINGS
After the study of various aspects we found that
Nano Car Is Definitely Not For: Someone looking for better performance.
Someone who is looking to impress somebody.
Someone who wants 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.

7. CONCLUSION

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 tatas. Its
something on which India can feel proud of. Nano has been developed effectively.

8. SUGGESTIONS
As per our findings we have some recommendations, which will be useful when TATA NANO
will be introduced in the market.
Advertisement and Publicity should be done very strongly, not only by price tag but also by
showing the technical specification, this will help in,
1) NANO will be visible in the market.
2) Help in converting the potential car customers to brand customers.

3) Will give strong position in the market to stand against the stronge competitor
800.

Maruti

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.

9. LIMITATIONS

As every research have its own limitations, so as we had and they are as follows:
1) Survey conducted in a small geographical area, in Bangalore.
2) Research conducted on the response of the 69 respondents, which cannot correctly
represent the population.

10.

APPENDICES

QUESTIONAIRE
Date ___________
Dear sir/madam,
We are doing a brief survey to find out more about consumers perception about TATAs new
people car TATA NANO. We would be grateful if you could spare a few minutes to participate
in it and we assure that this information taken will be purely used for academics purpose only.
Thank you for your cooperation.
1. What do you own presently?

Car

Bike

Other

2. If car then, what type of car do you own?

Small

Sedan

SUVs

Premium

3. If bike then, what type of bike do you own?

Economic

Premium

4. In car which brand do you own? (Please specify brand model)

Maruti Suzuki: ___________________________
Hyundai: ___________________________
Tata: ___________________________
Ford: ___________________________
Mitsubishi: ___________________________
If not any of these please specify: ____________________
5. Do you intend to buy a car in next 1 year?
Definitely will buy
May or may not buy
definitely will not

probably will buy

probably will not buy

6. Will you be interested in buying TATA NANO car? (If yes go to Q.no:7,if not go to Q.no:8)
Yes
No
7. What intended you to think to buy NANO in future?
Price
mileage
maintenance
safety
service
If others please specify _______________________________________________
8. What intended you not to buy NANO?
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________
9. What do you feel about TATA NANO will perform in the market?

Highly successful
Unsuccessful

Successful
neither successful nor unsuccessful
highly unsuccessful

10. What do you perceive TATA NANO in terms of safety?

Definitely will be good
May or may be good
not be good

probably will be good

probably will not be good

definitely will

11. Do you think TATANANO will increase traffic problem?

Yes

No

Personal details
Name: __________________
Age:

21 - 25
41 45

Sex:

Male

26 30
46 50

31 35
51 55

36 40
56 60

Female

Occupation:
Self employed
Monthly Income:
Less than 15000

Service
15000-20000

Student

Housewife

20000-25000

QUALITY MODEL

above 25000

Organizational Structure

The Organization and Management Team (TATA NANO)

The management team for Tata Nano is a diverse group with strong skills in technology,
marketing and sales, finance and operations. Our primary criteria when filling these executive
positions was extraordinary past achievement.

Key Players
John Smith CEO
Mr. Smith brings more than 25 years of marketing and executive management expertise in
growing businesses at leading companies. Immediately prior to Tata Nano Mr. Smith was CEO
of New One Corporation. While there he led the worldwide widget marketing group, a
multibillion
dollar enterprise that is currently ranked first in its industry. Mr. Smith also successfully
reorganized the company, streamlining operations and improving profitability.
Mr. Smith had previously spent seven years at Future, Inc. as COO. He was responsible for the
development and launch of numerous successful products in growing markets and new
business categories for Future. He helped drive revenues from more than $3 billion to more
than $12 billion. Under his guidance, the company was named the most-respected brand
names in America in 1996 and 1997. He holds both a Bachelor of Science in Industrial
Engineering and a Bachelor of Science in Management from Northwestern.
Fred Stone COO
Fred Stone was brought in a COO in January 2008. As COO, Mr. Stones mission is to establish
Tata Nanos leadership in the worldwide market. Mr. Stone was most recently senior vice
president of the global customer service organization at Gravel, Inc. His responsibilities included
customer service for all of Gravels Large Boulder Operations. Prior to his worldwide service
role, Mr. Stone was responsible for Gravels worldwide Enterprise Sales and Service
organization.
Mr. Stone has held a variety of sales and marketing management positions at including vice
president of Gravels North America System Sales, vice president and general manager for
Gravels boulder networking product group, and a director of marketing with responsibility for
key gravel product lines.
TATA Nano 4
Mr. Stone holds an MBA from the University of North Carolina at Chapel Hill and a degree in
Business, with honors, from Michigan State University.
Bob White VP of Product Development
Bob White was named to the Tata Nano, Inc. executive team in August 2007, as VP of Business
Development. A 13-year veteran of SIMs Corporation, Mr. White was most recently chief
software engineer with SIMs' global development team. Prior to his worldwide development
role, Mr. White was responsible for SIMs worldwide business development group.
He has held a variety of engineering management positions other Fortune 500 companies,
including vice president of development at North America Car Sales with responsibility for key
network communication product lines.
Mr. White do holds an MBA from the University of California at Berkeley and a degree in
Business, with honors, from San Jose State University.
Kate Brown VP of Marketing
Kate Brown is Tata Nanos VP of Marketing. She joined after nine years at OFFON, Inc., where

she served most recently as Senior Marketing Director. At OFFON, she was responsible for
creating new strategic partnerships and also for creating a brand awareness for a $500 million
joint venture between Act, 1business, and others.
Previously, she served as Vice President at JKL, managing regional business development,
marketing and sales teams. Brown also did marketing and consulting for BBB and DDE
consulting.
Brown holds an MBA degree from the Duke University.
Johan Bill VP of Finance
Johan Bill joined Tata Nano, Inc. as Vice President of Finance in September 2008. He manages
the company's finances and has established the financial systems. He worked with his former
employer, Wings, for over 12 years, holding numerous executive finance management positions
as Wings grew from a $200 million to a $2 billion company. Most recently working as Controller
of Wings, he was an integral player in executing and integrating numerous acquisitions. He also
spearheaded the development of the cash management and capital infrastructure, and
streamlined the financial planning process which led to significant improvements in the internal
systems architecture.
5 TATA Nano
Mr. Bill has a diverse financial background, with experience at both start-up and large
corporations. He graduated Summa Cum Laude from Berkley with a degree in Accounting. He
also holds an MBA from Santa Clara University.
The relationship between the Board, the Committees and the senior management functions is
illustrated below:
TATA Nano 6
Staffing Costs
Title Salary Benefits*
CEO 228,000 273,600
COO 180,000 216,000
VP of Product Development 100,000 120,000
VP Marketing 80,000 96,000
VP Finance 100,000 120,000
Management Committee 40,200 - 51,200 48,240 - 61,440
Engineering Committee 40,200 - 51,200 48,240 - 61,440
Finance Committee 40,200 - 51,200 48,240 - 61,440
Sales Committee 46,000 - 56,000 55,200 - 67,200
Operation Committee 19,400 - 22,400 23,280 - 26,880
Total 874,000 - 920,000 1,048,800 - 1,104,000
(* 20% added for employee benefits)
(These are salary levels where we will be at the end of year one.)
7 TATA Nano
The Revenue Model
The way Tata Nano raise funds include several aspects. Those aspects are detailed in the as
follows.
Selling the cars to clients
This activity is the first revenue flow of the project. The first targeted market is the Indian one.
The cars deliveries have started in July 2009. There are also project to extend the market to
Malaysia, the rest of Asia, Europe, Africa and south America, starting in 2011.

Bank Services
Tata Nano have sign contract with Indian Banks in order to allow low income people to get
loans at low interests. Therefore, they could afford booking for their Tata Nano. In that
contract, Tata Nano and the bank all take advantages.
Maintenance Services
The Tata Nano project include a maintenance department. In fact, the customers will be offered
maintenance services at a fix price per month. Those services will be extremely competitive
and cheap as the car itself.
Advertising
Tata nano have been making a lot of advertisement in a lot of countries. As Tata Nano have
become a famous trade, some channel will allow Tata Nano advertisement to be displayed,
increasing the channel audience. In addition, Tata Motors will take advantage of sweepstakes
organized in order to promote the car. Those events always bring to the company both
publicity and money.
Marchandising
There are a lot of product that have been manufactured in order to promote the Tata Nano,
namely hats and cups. The company will therefore sell those product and make money
benefits from them.
Making franchises
The development of Tata Nano started 6 years ago and have lead to the production of an
extremely efficient car as far as pollution and gas consumption are concerned . The technology
used could be sold to other companies as Licenses, leading to funds raise.
TATA Nano 8
Distributors In addition, Tata Nano have planned to use Distributors to make its product easily
available to the Indian population. Therefore those distributors will pay royalties to Tata Nano
after selling each car
The Financial Plan
Investment funding is needed for capital expenses and operating expenses as can be observed by
the
following financial statements:
BALANCE SHEET
(Euro'000's) Year 1 Year 2 Year 3
Fixed Assets
Tangible assets 15 350 16 118 16 716
Investments 1 000 1 000 1 000
19 850 20 618 21 216
Current Assets
Accounts Receivable 3 785 4 663 5 290
Inventory 2 744 3 372 3 873
Cash at Bank 0 120 550
Net Current Assets 6 529 8 035 9 163
Liabilities
Accounts Payable 5000 4500 4000
Long-term debt 0 150 750
Total Liabilities 5000 4650 4750

Total Assets less Current Liabilities 21 379 24 003 25 629

TATA Nano 20
INCOME STATEMENT
(Euro'000's) Year 1 Year 2 Year 3
Sales 20 000 23 000 25 500
Cost of Sales 17 500 19 000 21 000
Gross Profit 2 500 4 000 4 500
Sales, General &
Administration
Expense
3 000 3 000 3 000
Operating Profit -500 1 000 1 500
Taxation on
Profit/(Loss)
0 0 300
Profit/(Loss) after
Taxation
-500 1 000 1 200
Dividends Paid &
Proposed
137 120 103
Retained
Profit/(Deficit)
-637 880 1 097
Cash Flow Statement
(Euro'000's) Year 1 Year 2 Year 3
Opening Cash 0 -2 504 -2 998
Cash from Operations -2 004 -644 992
Increases in Assets -5 500 -1 500 -1 200
Increases in Liabilities 5 000 1 650 100
Closing Cash -2 504 -2 998 -3 106.

11. BIBLIOGRAPHY

1.

Book:

Product Planning Essentials

Authors: Kahn, Kenneth B. Kahn

2.

Book:

Product Management

Author: Lehmann, Winer

3.

Book:

Marketing Management

Author: Phillip Kotler

4.

Book: The Big Book of Marketing

Author: Anthony G. Bennett