...Tata Nano Case „5 C Analysis and STP“ For Marketing Strategy & Customer Management By: Sebastian Schmickler As of 20. March 2013 Customer The core benefit for the potential customer can be seen in the extremely cheap availability of a 4 seats offering individual transportation opportunity with a certain level of safety and comfort. This benefit will satisfy the pursuit of an affordable, individual and independent way to travel and transport things. The Customer therefore can be defined as individual that only can afford a limited small amount of money in order to buy a car (smaller household income). This leads to the conclusion that the potential buyer can be seen as part of the lower income class of the population (Indian middle class). The buyer of a Tata Nano will additionally generate in interest for those who search for more safety for example while transporting family members from a place to an other. Looking at this concern a consumer is a person not having a similar opportunity for same transportation. This can result from the absence of a car or the use of a scooter or bike (public transportation in some region can be seen as dangerous too). The customer could likewise have the need for a more convenient alternative to travel (for example during rainy or cold weather conditions). Company As core competence of Tata Motors Ltd. (Tata Group)(former TELCO) the good worldwide experience of manufacturing cars must be taken into account...
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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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...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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...THE TATA NANO: THE PEOPLE’S CAR (ABRIDGED) Source: © User:High Contrast/Wikimedia Commons/CC-BY-SA-3.0. It was one of the longest-awaited and most-talked-about car debuts in India. On January 10, 2008, Tata Motors unveiled the Nano, a USD2,5001 automobile referred to as “the people’s car.” Would it live up to the hype? And did its launch signal a new era for the small car market in India? How could Tata ensure the product would be profitable? Measuring 3.1 m by 1.5 m, the Nano displaced Maruti Udyog’s Maruti 800 as the world’s smallest car, yet its seating room was 21% greater than the 800’s—providing ample room for four adults. The Nano was also one of the world’s most fuel-efficient cars, getting 52 mpg in the city and 61 mpg on the highway. Touted as the cheapest car in the world, the Nano was scheduled to be available in September 2008. 1 USD = U.S. dollar; INR = Indian rupee. Tata and India’s Automobile Industry Tata Engineering and Locomotive Co. Ltd. was established in 1945. In 1954, the company launched its first automobile; between 1954 and 1969, it collaborated with Daimler Benz to produce commercial vehicles. By the 1990s, the company had entered the passenger vehicle market. In 2004, Tata Motors acquired the Daewoo Commercial Vehicle Co. Ltd., Korea’s second-largest truck manufacturer, and became the first Indian company to be listed on the New York Stock Exchange. The next year, it acquired a 21% stake in a Spanish bus manufacturer, and in May 2008,...
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...Positioning the Tata Nano Master in Management 2013/2014 Introduction Is important to consider India as a really special market. The cultural background deeply influences all the interactions between the population and with brands. The castes are a very important structure, and although this is changing, it still harder for people for desire big achievements if they are not in the right caste. Also the Tata Group deserves an introduction, being a group founded in 1868 with a trading company by Jamesetji Tata. The Tata Group is responsible for major improvements in India and follows a Code of Conduct that reflects the trust they want to inspire and also their commitment...
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...Company Profile Tata Motors Limited is India’s largest automobile company. In the years of 2008-09, the company produced over USD 14 billion in consolidated revenues. Tata is now the leader in leader in commercial vehicles in each segment. The company also boasts of producing the top three passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. Tata is the fourth largest truck manufacturer and second largest bus manufacturer in the world. Established in 1945, the company now employs 24,000 people, all led by one vision. A strategic alliance with Fiat in 2005 has allowed Tata Motors to set up an industrial joint venture with Fiat Group Automobiles to produce both Fiat and Tata cars and Fiat Power trains. A recent plant has been established at Sanand. The company also distributes and markets Fiat brand cars in India. Now seen as an international automobile company, Tata Motors was the first company from India’s engineering sector to be listed in the New York Stock Exchange in September of 2004. The company has expanded its operations to parts of the United Kingdom, South Korea, Thailand and Spain. The operations include Jaguar and Land Rover, two of Britain’s iconic brands that were acquired in 208. In 2004 the company had previously acquired the Daewoo Commercial Vehicles Company, the largest truck manufacturer in South Korea. The acquisition of Hispano Carrocera, a Spanish bus manufacturer, took place in 2005. Tata Motors enter into...
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...District, West Bengal, India. This place was practically unheard of and gained international media attention after Tata Motors proposed the idea of setting a factory to manufacture the world’s cheapest car- The Tata Nano. It was supposed to be priced at Rs 1, 00,000 and the car was scheduled to be rolled out by 2008. The Communist Party of India (Marxist) had just come to power at that time, (May 18, 2006). The State Government had allowed Tata to take over 997 acres of farmland in Singur to build its factory. Buddhadeb Bhattacharjee, the then Chief Minister of West Bengal, wanted Tata to go ahead with the Tata Nano project in his state citing reasons of industrialisation and State development. West Bengal was viewed as an anti- industrialised state and Buddhadeb Bhattacharjee wanted to reform that image. However, this act was received with much opposition from the activists, the displaced land owners and the opposition parties in Bengal. (Singur Tata Nano Controversy, 2012) The government had acquired 1200 acres of land which included 997 acres from 13000 'unwilling' farmers. These 997 acres of land was leased to the Tata Motors to set up the Nano plant. The government had offered a price which was better than that in Nandigram and also provided compensation which had included the sharecroppers also. There were six sites offered by the state government to Tata Motors. The company had selected Singur as the chosen site. Singur is the most fertile belt in that region. Almost...
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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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...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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...positioning strategies are required. Positioning allow customers for product differentiation so that they can choose the appropriate product for themselves. This case study of Tata Nano identifies the pitfalls and shortcomings of their prevalent positioning strategy of “People’s Car” and suggests ways in which Tata Motors could reposition its product for glorifying its image once again in-spite of changing industry dynamics. Since the economic liberalization of the 1990s, development of infrastructure within the country has progressed at a rapid pace, and today there is a wide variety of modes of transport by land, water and air. However, India's relatively low GDP has meant that access to these modes of transport has not been uniform. India's rapidly expanding economy has provided the basis for a fundamental change -- the emergence of a "new vanguard" increasingly dictating India's political and economic direction. This group is India's new middle class - mobile, driven, consumer-oriented, and, to some extent, forward-looking. It encompasses prosperous farmers, white-collar workers, business people, military personnel, and myriad others, all actively working toward a prosperous life. Televisions, and other consumer goods, reasonable earnings and savings, and educated children typify this diverse group. While Nano tries to target to the needs of this emerging middle class families which are yet to enjoy the privileges of most of the modern day requirements with respect to transport...
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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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...SHARMA-10BSPHH010936 * SUNIL Kr. YADAV-10BSPHH011074 * SAURABH TRIVEDI-10BSPHH011076 * NILABH-10BSPHH011081 * SHAUNAK GOSWAMI-10BSPHH010718 INDIAN AUTOMOBILE INDUSTRY (A MACRO AND MICRO ANALYSIS) With a Focus on TATA Motors | FINAL REPORT (Business Strategy) | IBS-2011 BS-SEC I (Group-3) SHINY ACHARYA-10BSPHH010733 SHWETABH SRIVASTAVA-10BSPHH010766 SUNIL Kr. YADAV-10BSPHH011074 SAURABH TRIVEDI-10BSPHH011076 NILABH-10BSPHH011081 RAGHINI SHARMA-10BSPHH010936 SHAUNAK GOSWAMI- | Table of Contents Indian Automobile Industry: An Overview 3 A. Macro analysis of Indian Automobile Sector 3 1. PESTEL Analysis 3 I. Political and Legal Factors 3 II. Economic Factors: 4 III. Social Factors: 5 IV. Technological Factors 6 V. Environmental Factors 6 2. Key Drivers of Growth and Change 6 3. Porter’s Diamond 7 I. Factor Conditions 7 II. Demand Conditions 7 III. Related and Supporting Industries 8 IV. Firm Strategy, structure and rivalry 8 B. Micro-analysis of Automobile Industry 9 1. Porter’s 5 Force Framework 9 2. Dynamics of Competition 9 C. Competitors & Markets 10 1. Strategic Groups 10 2. Market Segments 13 3. Identifying Strategic Customer 16 D. Strategic Gaps 17 E. Tata Motors 19 1. Introduction 19 Mission Statement 19 Vision Statement 19 Goal 19 Core Values 19 Market share 19 Revenue and profits 20 Domestic growth 20 2. SWOT Analysis 22 3. Strategies 24 4. Projection...
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...Tata Nano - Porter’s Five Forces Businesses need to understand the forces affecting them. These competitive forces offer a framework for every firm showing them how they can influence competition in the future. (PORTER 2008, p. 80) They also indicate the attractiveness of a given industry. (PORTER 2008, p. 80) The first part of these five forces consists of the rivalry of existing competitors. Which competitors are taken into consideration depends on the scope of competition the firm is defining. Many firms struggle because they do not define the industry broadly enough they are doing business in. (LEVITT 1960, p. 45) In the case of Tata competitors consist of manufacturers of motorcycles and scooters. According to the case study, there were 7 million sold in 2007. Another competitor is BAJAJ Auto that is also developing a low-price car. At the moment, the rivalry is not very strong for this price-class but success of the Tata could change that. As this market segment will grow, there might be new market entrants, e. g. European, American or other Asian car manufacturers that find it attractive to produce for the Indian market. Nevertheless, there are a few entry barriers like financial resources or capacity of the factories, e. g. to realize economies of scale. The third force is the bargaining power of suppliers. Like all car manufacturers, Tata is dependent from suppliers of various parts. On the one hand, the suppliers’ bargaining power is high because their parts...
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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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...| Case 3 Critique | 21 July 2014 | | Pt 1 Strategy Formulation 1. Business and Corporate-level strategies a. Business-level strategies Cost leadership strategy is utilized by Tata Motors, producing their goods in India at a low cost. The low costs of the Nano allowed consumers to own a vehicle when there was no way prior. b. Corporate-level strategies Tata Motors possess over 90 establishments in 80 countries. The globally owned organization allows for a large amount of diversification. 4 P’s framework-product, price, place, promotion a. Position: The mission is to provide vehicles that will appeal to the global consumer. Values of Tata Motors are customer satisfaction, innovation and integrity, while the vision is to have a valued product and provide excellent service. b. Priority: Priorities include low cost, quality vehicle, expand the product line to include a luxury vehicle, and to increase capacity globally. c. Payment: Investment of a Spain organization to gain shares and technology as well as merge with Jaguar/Land Rover to produce a luxury vehicle. d. Performance: Improve image of the organization and to increase profits as expansions continue to grow globally. Key Questions Key Questions | Option | Decision Criteria | Pros | Cons | Purchase of HCPurchase of JLR | Purchase shares, brand rights and technologyTo add a luxury line to the products | Market/competitionCost/benefitsMarket/competitionCost/benefits | Increase product...
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