...Pitch: This case talks about how Tata Motors, India's largest automobile company, developed the Nano, the world's cheapest car. The case focuses on the translation of Ratan Tata's (chairman of Tata Motors) vision of a safe affordable car for the masses by Ravi Kant, managing director of Tata Motors into the Nano Project. The case raises questions around breaking the price-quality barrier and changing existing internal processes to accommodate revolutionary new ideas. The dilemma of success—Tata Nano was a runaway bestseller—left Tata Motors debating how large a bet they should make on the Nano and what kind of capacity commitment this requires. Never before in the history had, a new product in the automobile industry created such a huge buzz after Ford's famous Model ‘T’. Ever since Ratan Tata announced that he would make a ‘People’s car’ for a price less than $ 2,500, in 2003 Geneva Auto show, it mystified various groups of people about the possibility of price, power, quality, performance and other factors. However, Ratan Tata was never to be bogged down with by apprehensions and or naysayers. During 2008, Nano was all over the press for the wrong reasons and that probably would have been a blessing in disguise for Nano’s buzz and all the critics were are silenced for ever when the car was launched on March 23rd 2009 with various public and private sector banks offering loans to customers. Nano and Ratan Tata became almost synonymous providing India Inc. in general and Tata Group...
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... 1.1 BACKGROUND OF THE COMPANY Tata Motors is India’s largest automobile company, with revenues of USD 14 billion in 2008-2009. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, and Spain. The company’s 24,000 employees are guided by the vision to be “best in the manner in which we operate best in the products we deliver and best in our value system and ethics” (Tata Motors, 2010) According to the Equity Bulls (2010), Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in January 2010 were 65,478 vehicles, a growth of 77% over 36,931 vehicles sold in January 2009. The company's domestic sales of Tata commercial and passenger vehicles for January 2010 were 62,202 vehicles, a 74% growth over 35,704 sold in January last year. Cumulative sales (including exports) for the company for the fiscal at 498,108 vehicles, recorded a growth of 24% over 400,284 sold last year. 1.2 TATA MOTORS – TATA NANO In January 2008, Tata Motors unveiled its People's Car, the Tata NANO, which India and the world have been looking forward to. Tata’s NANO is a new product with a new technology which promises the market of an efficient car with a very low cost. The Tata NANO has been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the NANO brings the comfort and safety of a car within the reach...
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...Management Development Institute, Gurgaon MARKETING PLANNING Study on ‘TATA NANO’ Submitted By : Aabid Bains (15P001) Arti Jain (15P011) Gautam Bindlish (15P021) Mayank Rajput (15P031) Rohit Gupta (15P041) Siddharth Gupta (15P051) INDEX Chapter No. Section-1 1 2 3 Section-2 4 5 Section-3 6 Chapter Name Page Number Preface The Curious Case of Tata Nano SWOT and PEST Analysis 3 4 6 Porter’s Five Forces Analysis Analysis of Consumer Behavior 11 14 Positioning Strategies 20 2 CHAPTER : 1 PREFACE The project aims at building a comprehensive understanding of how a company decides its marketing strategy and answer associated questions such as pricing, promotion and positioning of the product. Post launch, the effectiveness of the marketing strategy and performance of the product is also to be analyzed. The project also aims to analyze the decision-making process, purchase behavior and buying patterns from the perspective of the consumer. We will consider the dynamic market environment and changes at the micro and macro levels in the economy which affect the automobile sector 3 CHAPTER : 2 The Curious Case Of TATA Nano Introduced in January 2008 and launched in March 2009, TATA Nano was the most awaited launch of the year or perhaps the decade for the automobile industry. TATA MOTORS invested heavily in the project, not only financially but also as a brand. They were going to build an affordable “Rs...
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...Tata Motor’s -Company Background Tata Motors was established in 1945 and is formerly known as Tata Engineering and Locomotive Company. It is India's largest automobile company, and a fortune 500 company. Tata Motors acquired Jaguar and Land Rover, a premium car brand in UK, in 2013. The company always worked in line the Tata Values to contribute to Indian society. Tata Nano - Origin Ratan Tata’s thought about a people’s car was a social concern. He wanted to give a car to middle class of the society. Accordingly Ratan Tata, former Chairman, Tata Motor’s, shared his vision of making Rs. 1 lakh car at the Geneva Motor Show, in 2003. A team was then constituted to build a car with a target price of Rs. 1 lakh. Subsequently, the car was launched with a tag line “A promise is a promise”. Executive Summary TATA Nano is the cheapest car in the world. It is manufactured by TATA Motor Limited, the largest automobile company in India. Its chairman, Mr. Ratan Tata envisions that Tata Nano to become a “People’s car” which is affordable by almost everybody. Tata Nano is scheduled to first be launched in India on 1st April 2009 and expected to be in Indian market by July 2009. From the first moment that Tata Nano project was published, a huge buzz has been created all over India. It has already received 3000 bookings. What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising...
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...The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 2000). The case explains the design and development process of Tata Nano. The car was the result of a five year research and development project carried out by Tata Nano development team. While developing the car, Tata Motors and its suppliers constantly made efforts to reduce the costs while ensuring quality of each and every component including engine, steering, wheels, tires, windshield washing system, gear shifter etc. | | Analysts opined that Tata Nano had created a new segment in the passenger car market. However, they were concerned about the company's lack of capacity to fulfill high demand. They also argued that considering the low margins the company would get, it would take a long time for the project to break even. The case ends with a discussion on the challenges Tata Nano might face in the future. ------------------------------------------------- Excerpts ------------------------------------------------- Background Note The history of Tata Motors dates back to the mid-1900s. In 1945, Tata Motors was incorporated as Tata Engineering and Locomotive Company Limited (TELCO). The company was engaged in manufacturing locomotives and engineering products. Three years later, it launched a steam road roller in association with the UK-based Marshall Sons.....
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...India’s Drive to Industrialization: The Tata Nano Case Study [pic][pic] STRATEGIC MANAGEMENT IN NON-MARKET ENVIRONMENTS GROUP 3 Table of Contents I. INTRODUCTION 3 II. CASE SUMMARY 3 III. BACKGROUND 3 a. A History of Tata Motors 3 b. Tata’s Nano 4 c. Politics in West Bengal 4 IV. ANALYSIS 5 a. Issues 5 b. Interests 7 c. Institutions 8 d. Information 8 V. RECOMMENDATIONS 9 a. Better Government Involvement 9 b. More Effective Branding 9 c. Tata Nano Coalition Prospects 10 d. Develop Grassroots-level communications 10 e. Create True Stakeholders 11 VI. CONCLUSION 11 VII. BIBLIOGRAPHY 11 VIII. APPENDICES 12 I. INTRODUCTION This paper analyzes the case of India-based Tata Motors and the controversial introduction of the Nano, Tata’s revolutionary inexpensive car. The case represents a study of the non-market forces that influence the decisions made by managers of big firms with an Indian national and global perspective. The paper is divided into 2 parts: The first part (sections II – III) is an overview of this particular case study, and the second part (sections IV – V), presents detailed analyses and recommendations for Tata to become successful in future investments. In addition, a bibliography and some appendices are included to illustrate the content of this...
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...1 A Project Report Submitted on the Technology of “Tata Nano Car” As Part of the Course Managing Technology for Competitiveness PREPARED BY Choidup Dorji (113378) Wangmo Chador (113377) Pishenbay Adilbaevich Umirbekov (113417) Nipu Kumar Nath (112889) Christian Riisager (112846) 2 Executive Summary The study of Tata Nano car technology has demonstrated the fact that how a technological revolution has taken place in Automobile sector by the introduction of Tata Nano car in the market. It is 2 feet shorter than a Mini Cooper, has a comical appearance and weighs less than the four passengers it seats. But for the 350-millionplus middle class of India, Tata Nano, the world's cheapest car at $2,000, is a cause for exhilaration and for the first 100,000 lucky customers drawn via lottery, it's a dream come true. A century after Henry Ford put America on wheels with the Model T; the affordable Tata Nano is doing the same to the less privileged of the world. What is now dismissed by many as a "toy car" could soon reveal itself to be the mouse that roared, one of the most transformational consumer products of the century. Roughly 100,000 Indians lose their lives on the road every year, seven times the rate of the developed world. In a country where it is not uncommon to see entire families overflowing a rickshaw or women in saris sitting side-saddle on a bike with small children on their laps, moving one's family from an unsafe bike into a plastic capsule is a...
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...Forces Model on Tata NANO Brand Name: Unit Name Unit Code Tutor School Date Introduction The turnover in automotive industry is growing significantly. Companies need to sell their product across borders. To realize this, companies must evaluate the market forces in target markets in order to increase sales. One strategic tool used in evaluating market forces is porters five forces model. This tool highlights the key factors that determine the industry competition and the viability of such a market. The porters five forces model has been evolving with time. The principle ‘’the state of competition in an industry depends on five basic forces’’ (Porter, 2008 P.3) is still relevant. This analysis model covers a wide range of factors affecting the industry. Companies with awareness about their environment are able to make strategic decisions concerning their business. This paper discuses the application of Michael porter’s five forces model by Tata Motors Company on their new product, Tata Nano. Tata motors are the largest automobile company in India with revenues in excess of USD 16 billion in 2011. Tata motors have subsidiary companies and associate companies involved in various industries including mining, oil, manufacturing, and telecommunications. Tata motors have operations in Spain, Korea, Thailand, UK, and South Korea. The paper begins by identifying porters five forces. Second, a brief history of the Tata Nano is discussed....
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...TATA NANO CASE STUDY MIDDLESEX UNIVERSITY Module: - International and cross cultural marketing Module leader: - Dr Michael Kourtoubelides Student name: - KANUPRIYA BANSAL Student number: - M00430431 EXECUTIVE SUMMARY Tata motors ltd. is a renowned automobile company of India and is a part of Tata group. It is a pioneer of commercial vehicles, utility vehicles, passenger vehicles and it is world’s fourth largest manufacturer of trucks and buses. Ratan Tata, the CEO of Tata group had a vision to design a car for a low income group family and he came with the design of Tata Nano in 2008, tagged as “ People’s car” which was created for all the sections of economy. The automakers were shocked that how could Tata motors achieve the price target of 1 lakh ($2500). Tata Nano’s car design won the Edison award in 2009 and best compact car award. Tata Nano was launched in March 2009. The spokesperson of Tata, Mr. Kant agreed that initially the marketing strategy as well as positioning and targeting strategies were inappropriate as it did not reach the targeted customers as a result sales dipped. Many policies were incorporated and the marketing strategy was altered. Tata group’s retail outlets, big bazaar and croma made open distribution. It tied up with banks to provide easy finance to targeted customers. “Happiness guaranteed” was an initiative by Tata motors to boost Nano sales by improving after sale service. Tata motors has international expansion plans...
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...Advance Access publication 1 April 2010 The Tata Nano, the global ‘value’ segment and the implications for the traditional automotive industry regions Peter Wells Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive CF10 3EU, UK, wellspe@cardiff.ac.uk Received on June 30, 2009; accepted on March 4, 2010 Downloaded from cjres.oxfordjournals.org at East China Normal University on May 24, 2011 This paper provides a case study of the Tata Nano, a low-price car designed primarily in and for the Indian market, and its implications for the developed industrial markets. While the Nano is a classic ‘disruptive’ innovation in an Indian context, this paper argues that the car and its emulators have the potential to undermine the viability of the European automotive industry whose business is premised on technological sophistication, premium branding and high price. In an era of greater austerity, the ‘value for money’ segment is the one with global growth potential in emergent markets as well. The paper concludes that policy makers in Europe will need to decide how to react to the rather different vision of automobility offered by the Nano. Keywords: Tata Nano, automotive industry, strategy, regional development, economic policy, price competition JEL Classifications: F01, L11, L52, L62 Introduction In March 2009, the Indian company Tata launched the long-awaited Nano model, intended to provide a low-cost entry to automobility as an alternative to the...
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...Case exam 2013 2014: TATA Nano Tata Motors is India's largest automobile company, with consolidated revenues of USD 34.7 billion in 2012-13. Through subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea, Thailand, Spain, South Africa and Indonesia. Among them is Jaguar Land Rover, the business comprising the two iconic British brands Jaguar and Land Rover, which Tata bought in 2008. In the same year Tata Motors launched the Tata Nano, the cheapest car in the world. When Tata Motors, the automaker from the $68 billion Tata Group of India, announced the launch of a people’s car in 2003, the idea had everything in it to make the Indian middle-class dream of owning their first car come true. Nano looked to be the perfect platform to reap the fortune at the Base-of-thePyramid (a term which denotes the poorest socio-economic group, or the 4 billion people on earth who live on less than US$2.50 per day), and more importantly, showcase to the world how frugal innovations in the developing world could create affordable cars with a price tag of $2,500. While India's population is more than one billion people, only around one million passenger cars were sold in the country in 2007. By contrast, more than seven million motorcycles and scooters were sold. Mr. Tata said the tiny car is aimed at keeping the families of India's growing middle class from having to travel with as many as four people on a scooter. "It will provide Indian families with...
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...Literature Review On Why TATA NANO Flops in the market Shabid Ashraf Abhishek Sharma Ankita Singh Neha Dagur Shikha Mathur Dept. Of Management Studies, Malviya National Institute Of Technology Abstract: When the Tata Nano, a stripped-down minicar priced at around $2,000, was introduced in 2009, it was marketed as a car that would transform the way aspiring consumers in India and other developing countries got around. But the low-cost automotive revolution fizzled. Selling poorly at home and with exports drying up, the Nano has become a cautionary tale of misplaced ambitions and a drag on sales and profit at Tata Motors. It turns out that those climbing into India's middle class want cheap cars, but they don't want cars that seem cheap—and are willing to pay more than Tata reckoned for a vehicle that has a more upmarket image. In this study we will see why TATA is trying remake the "people's car," into the "cool people's car." It has given the car itself a face-lift, adding a stereo, hubcaps and chrome trim, raised the price and started a new marketing campaign to give it more cachet. 1. INTRODUCTION Tata Motors Limited is India's largest automobile company, with consolidated revenues of INR 1,88,818 crores (USD 34.7 billion) in 2012-13. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fifth...
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...UVA-M-0768 Rev. Feb. 2 2011 24, THE TATA NANO THE PE T O: EOPLE’S CAR It was one of the longest t f t-awaited an most talke nd ed-about aut tomobile deb in India On buts a. January 10, 2008, Ta Motors unveiled its (U.S. dollar USD2,50 car1 (also called “Rs1 lakh ata u rs) 00 car” or “t people’s car”) at the ninth Auto Expo in New Delhi. The Tata Nano brought a m the s w o media blitz and a crush of onlookers th required top-level sec o hat t curity. Woul the car liv up to its h ld ve hype? ignal a new era for the sm car mar e mall rket in India How could Tata ensur the a? re And did its launch si w ofitable? product would be pro Widely touted as the chea W d apest car in the world, th Nano was scheduled to be availab in t he s ble September 2008. In addition to paying (Indian rupees) IN lakh— a p INR1 —equivalent t INR100,0 to 000— buyers would also have to pay 12.5% valu w h ue-added tax along wit charges s x th such as road and d transport tation taxes. The two-cy ylinder gaso oline-powere version w ed would debut first; the d t diesel versions would soon follow. The Nano wa one of th world’s most fuel-eff T as he m fficient cars, getting 52 miles per g gallon (mpg) in the city and 61 mpg on the highwa (22 km pe liter and 2 km per lit respectiv d n ay er 26 ter, vely). Measurin 3.1 meters by 1.5 meters, it dis ng m splaced Mar Udyog’s Maruti 80 as the wo ruti s 00 orld’s smallest...
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...net/publication/228143324 The Tata Nano: The People's Car ARTICLE · JUNE 2009 CITATION READS 1 709 3 AUTHORS, INCLUDING: Paul Farris University of Virginia 115 PUBLICATIONS 1,044 CITATIONS SEE PROFILE Available from: Paul Farris Retrieved on: 08 January 2016 UVA-M-0768 Rev. Feb. 2 2011 24, THE TATA NANO THE PE T O: EOPLE’S CAR It was one of the longest t f t-awaited an most talke nd ed-about aut tomobile deb in India On buts a. January 10, 2008, Ta Motors unveiled its (U.S. dollar USD2,50 car1 (also called “Rs1 lakh ata u rs) 00 car” or “t people’s car”) at the ninth Auto Expo in New Delhi. The Tata Nano brought a m the s w o media blitz and a crush of onlookers th required top-level sec o hat t curity. Woul the car liv up to its h ld ve hype? ignal a new era for the sm car mar e mall rket in India How could Tata ensur the a? re And did its launch si w ofitable? product would be pro Widely touted as the chea W d apest car in the world, th Nano was scheduled to be availab in t he s ble September 2008. In addition to paying (Indian rupees) IN lakh— a p INR1 —equivalent t INR100,0 to 000— buyers would also have to pay 12.5% valu w h ue-added tax along wit charges s x th such as road and d transport tation taxes. The two-cy ylinder gaso oline-powere version w ed would debut first; the d t diesel versions would soon follow. The Nano wa one of th world’s most fuel-eff ...
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...Business Policy & Competitive Strategy Vivek Khanna TATA Motors This project is a part of the internal assessment for the subject Business Policy & Competitive Strategy. I have developed a Porter’s Five Forces analysis for the organization. I identified strategic strengths and weaknesses and identified core competencies of the organization . The company that I have taken into account to analysis the Porter’s Five Forces is the Tata Motors. The Specific product that I will be taking into analysis is the NANO CAR. This segment has a great growth potential in developing countries , especially in a country like India. 1. Potential Entrants – Threat of new entrants 2. Buyers – Bargaining power of buyers 3. Substitutes – a. Threat of substitute products or services b. Rivalry among existing firms 4. Suppliers - Bargaining Power of Suppliers 5. Other Stakeholders – Relative Power of Union, Governments etc. A brief Information about the product : The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a commercial launch on March 23, 2009 and, a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car will begin in...
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