...a 10 EXECUTIVE SUMMARY Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car“which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching. 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 the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot weather...
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...EXECUTIVE SUMMARY Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1- lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People’s car“which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. The figures keep increasing every day since the launching. 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 the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter. Tata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order can be made vide these distribution centres or its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due...
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...The old adage “a person cannot be too rich or too thin”. As well-known Tata Motors’ (TTM) disappointing experience with the Nano, the $2,000 small size car it introduced with huge publicity in 2008, it is clear a car can be too cheap—at least for consumers who don’t want to be recognized with a low-end car. Ratan Tata, the chairperson of parent Tata Group, announced headlines a decade ago when he ordered up a “people’s car” which will appeal to Indian families who earlier can only own a scooter for travel. But Tata Motors has sold just 229,157 Nanos since deliveries began in 2009, and sales in March were off by 85% than previous year. Tata MD Karl Slym insists the company will not kill the tiny, egg-shaped car. It will soon add improvements to sustain the model, a move that will ultimately bring its price closer to those of competitors. The Nano’s marketing “didn’t jell with anyone,” he says. Scooter drivers were not attracted because others “never think that they are buying a car, they only think that they are buying something between a two-wheeler and a car. Anyone who had a car will never want to buy it, because it will always be supposed to be a two wheeler substitute.” Analysis of stages in complex buying behavior 1. Need recognition 2. Information search 3. Evolution of alternative 4. Purchase decision 5. Post purchase evaluation. Need Recognition. Need for Tata Nano can be driven either by internal stimuli (Desire/attitude/perception) or external...
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...Analysis of consumer behavior in Indian Market The announcement of the car The expectation of the Nano car & its positioning The issues faced when the car came to the market The failure with respect to positioning The re-launch The road ahead Indian Customer perspective Using the Consumer or the Customer brand equity model, let’s try to look at the car from an Indian consumer’s perspective, what are the expectations: When it comes to buying a car, usually it is seen the Indian customer looks for the following in a car; Convienece, Car personality, Fuel efficiency, Power, Econmoic, Smartness of car and Status symbol. So the primary question is whether Tata Nano was able to live up to this expectation? Announcement When Tato Nano was announced in the month of January, 2008 it was over hyped to be the car of every Indian. The price of Nano was said as Rs. 1 lakh or $2500, as said by Ratan Tata, the Chairman of the Tata Group at that point of time. It became a dream car for every person belonging to the lower middle class and even the lower class. However the ministry of transport also raised concerns about the congestion on roads that the car would bring in as people may start to use it regularly for their day to day transportation. Marketing Plan Tata Motors basically Segmented and targeted the following groups of Indian population: 1. The Middle class Mainly the lower middle class Upper lower class 2. Usually the two-wheeler users 3. Family with 3-4 members...
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...MKT 1003: Principles of Marketing Group Case 5: Tata Nano Prepared for: Assoc Prof Ang Swee Hoon Submitted by Yee Kuan Teck (A0087051J) Yin Jianan (A0088292U) Seow Yuxin (A0083446B) Jeannette Koh (A0083591Y) A.P.Pravweenraam (A0088362X) Augustus Set (A0086766L) Lam Yan Ting (A0088777A) Lai Yee Chuang (A0084426A) Table of Contents 1.0 Introduction 3 2.0 Background information 3 2.1 Product Description 3 2.2 Market Segmentation 4 2.3 Targeted Market Segment 4 2.4 Current Competitors 4 2.5 Current Marketing Mix (4Ps) 5 2.5.1 Product 5 2.5.2 Price 5 2.5.3 Promotion 5 2.5.4 Place 6 2.6 Current Sales 6 3. S.W.O.T Analysis (Tata Nano) 6 3.1 Strengths 6 3.2 Weakness 7 3.3 Opportunities 7 3.4 Threats 8 4.0 Recommendations 8 4.1 Improvement to Product Perceptions: Advertisement Focus 8 4.2 Improvement to Distribution Channels: Mobile Showrooms 9 4.3 Improvement to Marketing Methods: Personal Selling 9 4.4 Improvement to Marketing Methods: Radio and TV Commercials 9 4.5 Improve Financing: “Micro”- Credit 10 4.6 Continuous Innovation 10 5. Conclusion 10 1.0 Introduction The Tata Nano is a car born from the vision of Mr Ratan Tata, the chairman of the Tata Group and Tata Motors. He envisioned a car that every middle-low income Indian would be able to afford. The outcome of this is the world’s cheapest car. Since its inception, the Tata Nano has received tremendous attention from the media, and yet it is unable...
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...Case Summary The Tata Nano is a city car manufactured by Tata Motors which is made and sold in India. The Nano is the cheapest car in the world today. Before it went on sale, a price of 1 lakh Rupee (US$1,600) was widely touted. Since its 2009 debut, the price has increased; while the Nano remains the lowest-cost four-wheeled passenger vehicle in India, it is significantly more expensive than a motorcycle, a popular means of cheap transport in the country. In early 2006, Tata Motors announced its intentions to revolutionize the automobile industry through a centralized manufacturing plant. This plant was conceived in order to manufacture the much awaited “1 lakh Rupee car”, the world’s cheapest car. The launch of the Nano would not only be a huge coup for Tata Motors, but would also put the Indian car manufacturing industry firmly on the global map. As a result, the proposed launch had received wide media coverage both in India and internationally. In late 2006, several Indian state governments had approached Tata about establishing the Nano plant in their respective states. The plant would generate revenues for the state and create much-needed jobs. The economic and social benefits of Tata’s industrialization would also be crucial for a developing country like India and largely benefit only the state selected for the plant. The four-door Nano is about 10 feet long and 5 feet wide, and powered by a 623cc two-cylinder engine at the back of the car. The car has 33 horsepower...
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...Advertisement Advertisement Advertisement Advertisement Advertisement Advertisement Advertisement Advertisement as higher fossil fuels leaked into the environment causing even more pollution then there alreadyis.Tata Motors is family owned and this can potentially cause problems down the road because some family members can become greedy and money hungry. Once they really start torapidly grow then there may be family feuds and people not pulling their part.Another threat is the whole point of their cars being made with cheap plastic. Are thesecars durable? Will they hold together in a head-on collision? As off August 2007 there was nofurther information on this topic though. CAPITALIZING ON TATA MOTORS’ SUCCESS Arguably, one of the most significant aspects of a business’s strategy is constantenvironmental scanning, or looking for opportunities that will either...
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...POSITIONING IS INEVITABLE –A CASE STUDY OF TATA NANO Natasha Saqib Assistant Professor Department of Management Studies, University of Kashmir, South Campus Email –natalie81985@gmail.com Correspondence Address Natasha Saqib C/O Jamsheed Saqib United India Insurance Co. Ltd Divisional Office Regal Chowk Srinagar, Jammu & Kasmir Pincode No 190001 POSITIONING IS INEVITABLE –A CASE STUDY OF TATA NANO Abstract The forces of globalization and technological advancement have rendered the market place highly competitive and complex. The customer's needs, wants and expectations are changing at an exponential rate posing great challenges to the companies. For surviving and thriving in this scenario companies need to develop effective brand positioning strategies .Positioning helps customers know the real differences among competing products so that they can choose the one that is most valuable and useful to them.This is a case study of Tata Nano, one of the most ambitious projects of Tata Motor’s, which was started in 2008. It was envisioned by the Tata Group former chairman Ratan Tata himself. The case focuses on how the initial strategies for launching and positioning Tata Nano as a “People’s Car” backfired and how management recognized its shortcomings and mistakes that led to the wrong positioning of Tata Nano as “Worlds Cheapest Car” among the segment it was created for. And how finally after four years of it commercial launch, understanding the inevitability...
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...LEGAL ELEMENT West Bengal's Nano Impasse: A Roadblock for Tata The slogans on signs in Singur -- the West Bengal site where Tata Motors plans to manufacture the Nano, its $2,500 small car -- say it all. Most are in Bengali, but the few in English capture the overriding sentiment. "Nano No No," reads one. "Atta not Tata," says another. Atta, which is flour made from whole wheat, refers to the core question of the dispute: Should fertile farmland be requisitioned for industrial purposes? Does food get priority or factories? According to faculty at Wharton and the Indian School of Business, the impasse over the plant in West Bengal threatens to increase the Nano's production costs and could delay its entry into the domestic market. Moreover, they say, it will likely impact investment in the region, as outside companies shy away from antiquated land laws and political disruption. As things stand today, work has been suspended at the Nano plant. Tata has closed shop because, as chairman Ratan Tata told journalists in Kolkata (formerly Calcutta): "I can't bring our managers and their families to West Bengal if they're going to be beaten, if there is going to be violence constantly, if their children are afraid to go to school." Tata has faced trouble ever since it got the go-ahead for the plant on May 18, 2006. Just a week later, there were angry demonstrations by farmers objecting to the "forcible" acquisition of land for the project. The Trinamool Congress, a political party...
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...Innovative Practices in Customer Creation Submitted to : Prof. Mithileshwar Jha On 18th October 2013 In partial fulfillment of the requirements of GMITE-VII By |Name |Registration No. | |Gopakumar Nair |GMITE- 22 | |Jijo Mathew |GMITE | |P G Rajesh Nair |GMITE- 63 | |Name |Registration No. | |Gopakumar Nair |GMITE 22 | |Jijo Mathew |GMI | Name Registration no. Gopakumar Nair GMITE 22 Jijo Mathew Rajesh Nair [pic] Executive Summary From the conception level to the launch of a product/service and then to sustain and enhance market acceptability, each product /service follows certain marketing techniques. Marketing strategies decide the futuresucess of a product, be it services or a new product, it is the strategies adopted to identify the customers, positioning and pricing of the product which determines the life of the product in the market. In this paper we have researched on some of the Innovative strategies successfully employed by automobile companies for new customer creation This document is a study about...
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...center in producing small cars. In the year 2006, Ratan Tata of Tata Motors conceived the idea of a tiny car at an extremely cheap price to capture the potential of the rapidly growing middle class segment. The outcome was the Tata Nano, the world’s cheapest car priced at one lakh INR. Rolled out from Tata Motors as the world’s cheapest car in the year 2009, the indigenous Tata Nano achieved immediate success, fulfilling its promises of a complete car at an affordable price for the middle class masses. The Tata’s had relied rather heavily on the publicity of their product. But rather than leveraging this publicity, Tata became complacent about the communication strategy. The USP of the product, the “cheapest” price tag, had backfired miserably, and actually shunned its sales. The status conscious customer obviously did not want to get associated with the tag of “Poor man’s car”, and would rather opt for slightly pricier rival options. Hence, instead of being perceived as a functional step above the motorcycle as it was intended to be, the Tata Nano started being largely perceived as a cut-price car. The Tata Nano was initially conceived as a safe personal mobility alternative to the huge section of the Indian two wheeler riding population, at an equally competitive price. But the safety of the car came under intense criticism when quite a few of the cars caught fire in their early days. This was followed by a call from Tata Motors to its existing customers to install safety devices...
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...Audit……………………………………………………………………….4 A SWOT Analysis The Internal Environment…………………………………………………………………5 Strengths……………………………………………………………………………………..5 Weaknesses…………………………………………………………………………………5 The External Environment…………………………………………………………………6 Opportunities………………………………………………………………………………..6 Threats ……………………………………………………………………………………….6 Summary of key issues and implications for the eco-Nano…………………….…6 Marketing Objectives……………………………………………………………………..7 Segmentation, targeting and positioning strategies………………………………..8 The marketing mix………………………………………………………………………….9 Marketing budget………………………………………………………………………...10 A marketing Audit the Gap Analysis Recommend evaluation and control…………………………………………………12 Assess the internal marketing environment…………………………………………15 Processes and techniques ……………………………………………………………..16 The Boston Consulting Grid …………………………………………………………….16 McKinsey’s Seven S’s ……………………………………………………………………17 The planning Gap………………………………………………………………………..18 Brand management Role and significance of Branding…………………………………………………….22 Impact of Branding on marketing mix………………………………………………..22 Brand management……………………………………………………………………...23 Recommendation for improvement…………………………………………………..24 core section - task one Case – Tata motors 1 Introduction Tata Motors Ltd is a wholly owned company which is a part of the TATA GROUP. The company is going to launch a new eco-friendly car in the existing segment that another car, the Nano has already been developed...
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...brand image of the TATA Nano -------------------------------------------- 5 2.3 Unnecessary Expenses --------------------------------------------------------------- 6 3. Analysis ------------------------------------------------------------------------------------------- 7 3.1 Alarming attrition rate of executives ------------------------------------------- 8 3.2 Poor brand image of the TATA Nano ------------------------------------------ 9 3.3 Unnecessary Expenses 4. Criteria of Evaluation ------------------------------------------------------------------------ 10 5. Alternatives ------------------------------------------------------------------------------------- 11 5.1 Managing Employees’ motivation in challenging times -------------------- 12 5.2 Reduce attrition rate by increasing salary --------------------------------------- 13 5.3 Managing perceptions and TATA Nano ----------------------------------------- 14 5.4 False perceptions by means of prestige pricing ----------------------------- 15 5.5 Reducing costs by relocating production lines ------------------------------ 16 5.6 Country of origin effect --------------------------------------------------------------- 17 6. Recommendations and Justifications ------------------------------------------------- 18 6.1 Managing Employees’ motivation in challenging times -------------------- 18 6.2 Managing perceptions and TATA Nano ------------------------------------------...
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... South Korea, and Thailand. (Reason: More demand and lower interest rates on automobile loans) * India's major car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" .Chennai accounts for 60 per cent of the country's automotive exports. NOTE: The level of technology change in the Motor vehicle Industry has been high but, the rate of change in technology has been medium. Key automobile manufactures in India: * Maruti Udyog * General Motors * Ford India Limited * Bajaj Auto * Mahindra & Mahindra * Hyundai Motors India Limited Research on Tata Motors Tata Motors is leading the commercial vehicle segment with a market share of about 64%. Research on TM: Tata Motors Limited is a multinational automotive corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO. It was established in 1950 as a locomotive manufacturing unit and later expanded its operations to commercial vehicle sector. In 1998...
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...SWOT Analysis for TATA Motors TATA motors are one of the leading motor vehicle producers in the world. TATA motors have strong background and reputation in the market. The company is working to strengthen its position in automobile industry by adopting different strategies. Following are the strengths, weaknesses, opportunities and strengths of TATA motors. Strengths TATA Motors is one of the leading companies in automobile industry with more than 70 years of experience. During this period it had produced more than 3 million vehicles which is huge achievement for the company. TATA motors have been expanding its business which is obviously requiring more workforces. Currently TATA motors employee base is 23,000 Approx. One of the strengths which is very visible in the industry and also beneficial for TATA motors revenue are low price vehicles and low fuel consumption. Due to TATA motors strong brand and quality vehicles it has good reputation in the industry. It is India largest automobile company with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. TATA motors are expanding its network in International market by aggressively acquiring foreign companies. TATA motors has been famous to introduce new vehicles, this is possible just because of the strong research and development. TATA motors also play active role in corporate and social responsibility. Weaknesses There are strings attached with every new invention and improvement on products. These strings are Tata...
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