Tata Nano…

The ONE lakh car that drives ONE billion dreams…

 Delhi School of Management
Case Study on Tata Nano
Prof. Incharge: Dr. P.K. GUPTA

Presented by :
Ashish Marwah(13/MBA)
Chandra Shekhar Sharma(17/MBA)
Gagan Gupta(20/MBA)
Kshitij Sharma(25/MBA)
Sanchit Agrawal(49/MBA)

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 Table of Contents
S.No. Topic Slide No.
1 About Tata Motors 4
2 Significant Mergers & Acquisitions 6
3 Vision of the Company 7
4 Idea Generation 8
5 Tata Nano – Project 9
6 Marketing Mix(4 P’s) 10
7 What makes Tata Nano so cheap? 12
8 What Tata Nano offers? 13
9 Product Life Cycle Curve 14
10 SWOT Analysis 15
11 Comparison between Tata Nano & Maruti 800 17
12 Question &Answers 18
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About Tata Motors
History:-
 Established in 1945 .
 India's largest automobile company, with consolidated
revenues of Rs.70,938.85 crores (USD 14 billion) in
2008-09 .
 Over 4 million Tata vehicles ply on Indian roads.
 The first company from India's Engineering Sector to be
listed in the New York Stock Exchange (September 2004)

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(contd…)
The company's manufacturing base in India is spread
across:-
1) Jamshedpur (Jharkhand)
2) Pune (Maharashtra)
3) Lucknow (Uttar Pradesh)
4) Pantnagar (Uttarakhand)
5) Dharwad (Karnataka).

 Tata Motors has operations in the UK, South Korea,

Thailand and Spain as well.
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Significant Mergers & Acquisitions
 Jaguar Land Rover, a business comprising the two iconic British brands that
was acquired in 2008.
 In 2004, it acquired the Daewoo Commercial Vehicles Company, South
Korea's second largest truck maker.
 In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently the remaining stake
in 2009.
 In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand .

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Vision of the Company
I. Best in the manner in which we operate.
II. Best in the products we deliver.
III. Best in our value system and ethics.

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Idea Generation

“I saw families riding around on

scooters with kids standing up
and the mother carrying a baby
and sitting pillion and decided to
do something about it. It started
as a quest for an affordable
transportation solution”.
RATAN TATA

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Tata Nano – Project
 Lead by Girish Wagh (General Manager, Tata Motors Ltd.)
 Began in 2003
 Objective was to create very low cost transportation system with four
wheels
 The car was designed at Italy's Institute of Development in
Automotive Engineering
 A team of 500 engineers worked on it
 Faced political obligations in Singur
 Shifted to Pantnagar, Uttarakhand
 Came out with world’s cheapest car in July, 2009
 Till date 10,518 units on road

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 Marketing Mix(4 P’s)
Product: An impeccable vehicle, covering all
segments of the market, from youngsters to senior
citizens. Attractive, small yet comfortable.

Price: Offering the lowest price in this segment,

requires no comments.

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(contd…)
Place (distribution): With the existing Tata dealers
and roping in its other business lines like Westside,
Croma , Titan stores, the distribution was never an
issue for Nano.

Promotion: Coming from the Tata’s stable, the Nano

has already created a brand image. The price of the
car has offered enough promotion not only in India
but also globally.
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.

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What Nano offers..?
 A roomy passenger compartment with generous leg space and
head room.
 Seating capacity of four.

 Safety performance exceeds regulatory requirements in India.

 Eco friendly

 High fuel efficiency.

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Product Life Cycle Curve

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SWOT Analysis STRENGTHS WEAKNESS

First innovation – set a benchmark 7 No passenger side mirror -4

Cheapest & Stylish 6 Low quality seat -3
Eco-friendly – green house effect 5 Poor engine cooling & hence
Fuel-efficiency & engine 5 overheating -2
Space – Internal - 21% more than M-800 5 Not fit for hilly terrain -3
External - 8% less than M-800
+28 -12

OPPORTUNITIES THREATS

Diesel & electric variant Traffic congestion -3

3 Security not sure -4
Created a niche market Bad impression due to late delivery
4 in market -2
Recession 4 Competitors – Bajaj, Renault & Nissan -2
Parking space 5
Rising cost of raw material -7
-18
+16
Overall Overall
+44 Final Rating = +28+16-12-18 = +14
-30

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Tata Nano - Specifications
• Length:- 3.1 m
• Wide:- 1.5 m
• Height:- 1.6 m
• Weight:- 600 kg
• Mileage:- 20 km/l
• Fuel tank:- 15 l
• Engine:- 624 cc
• Ground
clearance:180mm
• Gear box:- 4-speed
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 Compare….
Tata nano Maruti 800
Engine:-624cc, petrol. Engine:-796cc, petrol.
Transmission:-4 forword,1- Transmission:-4 forword,1-
reverse,manual. reverse, manual.
Max power:-34.5 bhp @ 5250 Max power:-37 bhp @ 5000
rpm. rpm.
Performance:- 0-60 kph:8.66 Performance:- 0-60 kph: 8.1
sec and 0-100 kph:31.3 sec. secs. And 0-100 kph:26.3 secs.
Top speed:- 70 km/h. Top speed:- 130 kmph.
Mileage(overall):- 20 km/l. Mileage(overall):- 16 kmpl.
Price:- 123360 to 172360 (Ex Price:- 1.97 lakh onwards.
showroom, Delhi)

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Questions & Answers

Q1 Do you agree that Tata would be able to

maintain the committed price?

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A.1
No. It would be difficult for Tata Motors to maintain
the committed price of Nano
because of:-

Rising prices of steel and other raw materials from

13% to 23% since Aug’08(Development Phase).

Inclusion of total vehicle crash testing system

comprising airbags, antilock breaking system will
increase the price.
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(contd…)
Just delivering to complete the promise.
Loss of about 1200 crores due to shifting of
manufacturing unit from Singur to Pantnagar.
Not compliant to Euro IV emission standards.
Current price itself exceeds 1 lakh.

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(contd…)
Because of the already mentioned reasons Tata
Motors were left with the following choices:-
Introducing the car with an artificially low price
through government subsidies and tax-breaks
forgoing profit on the car.
Partially using inexpensive polymers or biodegradable
plastics instead of a full metal-body.
Rising the price of the car.

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Price list… (Ex showroom price in Delhi)
TATA nano std (BS3) Rs-123360

TATA nano cx solid paint Rs-148360

(BS3)
TATA nano cx metallic paint Rs-151360
(BS3)

TATA nano LX metallic paint Rs-172360

(BS3)

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 Q2 What marketing strategy you
would recommend ?

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Current Marketing Strategies
ONLINE STRATEGIES

1) Website: www.tatanano.com

2) Social Media:
a) Blog
b) Orkut
c) Facebook
d) YouTube

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(contd…)
3) Nano Game:
The game by Zapak was a great move to
spread word about the car and it seems
to have really worked well in doing it's
job.

4) Online Advertisements:
The blogosphere and indian media sites were inundated
with ads for Tata Nano. The ads came in all shapes and
sizes and were definitely noticed.

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(contd…)
OFFLINE STRATEGIES
1) Collaborations:
Tata partnered with a few banks for releasing application
forms.

2) Mall Promotions:
Models on display

3) Leveraging Existing Infrastructure:

Now you can find Nano merchandise(eg. Nano watches,
Nano T-shirts), application forms and demo cars in Tata
Indicom, Titan, Croma and Westside stores.

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Proposed Marketing Strategies
Extensive marketing approach through TV commercials &
print media.
Involving a brand ambassador to save it’s image(recently
marred by short-circuit incidents).
Tapping the commercial service(eg. Taxi,auto) market
through attractive exchange & finance schemes.
More investment in R&D to come up with more
innovative features & to eliminate shortcomings as well.

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References
Mr. Arun Kumar Gupta of Rasanbik Engg. Industries
India Ltd. (vendor of Tata Nano)
www.tatanano.com
www.google.co.in
www.wikipedia.com
www.autosmaxabout.com

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