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Shastri Sadan, Sector III, R. K. Puram, New Delhi

TATA NANO

MARKETING THE INNOVATION

GROUP 2

(SECTION B PGDM FT)

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BIRTH OF AN IDEA Mr. Jamshed Ji Tata was the first Indian to own a car. His vision was carried forward by no less able successor Mr.Ratan N. Tata

to provide car to evry indian.

Year 2003: Mr. Ratan N. Tata noticed a huge middle class

balancing its self just on two wheels.

A dream was born in his mind of a low cost car, no more than Rs.

100000 (USD 2500), meeting international standards.

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HISTORY IN THE MAKING A gaping hole in the market, where for middle class it was only adream to own a car.

Where there was a dream, Mr.Ratan Tata saw an opportunity, anopportunity to sell the dreams.

Despite facing problems in SINGUR, West Bengal, Mr. Tata movedforward with his vision to realize his dream.

A Rs.1700 Crore investment and an effort to create a EURO IV andBHARAT III compliant car was in the making.

So was realized the BIGGEST INNOVATION MIRACLE ever inautomobile industry,

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LAUNCH 2008 Day: 9th January 2008, Venue: AUTO EXPO, DELHI

Tata Nano was launched successfully.

Key Features

623 cc, 34 bhp rear mounted

engine

Fuel efficiency 20 kilometers\litre

Top speed: 105 kmph Safety: Survived frontal crash at

48 kmph

Emission: Bharat III and EURO

IV compliant

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MARKETING INSIGHTS In the most ancient form, marketing is described in four Ps PRICE

PLACE

PRODUCT

PROMOTION

1. PRICE

Rs. 100000= USD 2500, mind boggling figure, which grabbed the

attention of the whole world.

An exquisite research, following many innovations resulted in such a lowcost four wheeler.

It is significant to understand how prices were slashed down so heavily.

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HowPrices Were SlashedDown? Two things- RESEARCH and INNOVATION, led to prices being

slashed down so heavily.

One principle followed-

Cutting cost by reducing number of parts in each component.

From hollow steering shaft to 70% less components in doorhandles, parts were reduced wherever possible.

Glues were used instead of welding of parts, nevertheless,no compromise was made on safety.

Reducing on Air conditioning, power brakes, radios etc. onentry level models.

Despite an initial innovation cost of up to 40-50%, the results ofcreative thinking turned out to be amazing.

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MARKETING INSIGHTS-PRODUCT The following features led to marketing of product throughout world

COST: RS. 100000 (USD 2500)

The only car in the world WITH 34 INNOVATION PATENTS.

BHARAT III and EURO IV COMPLIANT four wheel automobile, withlesser pollution levels than most two wheelers.

Impressive fuel efficiency of 20 KILOMETERS/LITRE and a sufficient

top speed of 105 kmph for Indian roads.

21 percent more space than MARUTI 800, despite a sharp reduction by

8% in length.

Availability in three variants-BASIC , DELUXE and PREMIUM MODEL

to serve variants in income class.

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MARKETING INSIGHTS-PLACE Tata Nano is well grafted for INDIAN MARKET

Very large population base, most of which is middle class.

India, where four wheeler is considered a status symbol.

India, where pockets can afford only two wheelers, while their needs

was no less than four wheeler.

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MARKETING INSIGHTS-PROMOTION Coming to probably the most important of all Ps of marketing-

PROMOTION, played a significant role in making TATA NANO a brand in

its own.

The following PROMOTION STRATEGIES were put to effect for NANO-

NANO as a brand with the name of TATA, the most recognizable name

in Indian industry.

Promoted Nano as JOY ,COMFORT and SAFETY of a car, at a

cost only cut above the two wheeler.

Envisioned as the PEOPLEs CAR, Nano soon made its place in

middle class dreams.

The rest was completed by consistent presence through AUTO SHOWSworldwide, and news bulletins broadcasting the features of Nano.

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TRENDS IN INDIAN AUTOMOBILE INDUSTRY

Indian automobile industry is seeing the following trends with respect to two

and four wheelers

An upward trend in commercial vehicle sales in 2003-07 years and a

subsequent rise in percentage of market share of Tata.

But in the passenger vehicle sector, Tata was experiencing a stagnation

in its market share since 2005-07, TATA NANO is like the ultimate intent

to grab back the market share in this sector.

Prices of two wheelers kept on rising whereas prices of four wheelers

fell.All these factors contributed to provide a huge customer base for NANO.

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IMPACT OF NANO ON AUTOMOBILE

INDUSTRY

The impact of NANO on the industry

POSITIVEIMPACT

Generation of employment across Indian economy.

A boost to rural economy and better mobility for Indias

profound middle class and lower class.

Provide healthy competition to other car segments.

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IMPACT OF NANO ON AUTOMOBILE

INDUSTRY-CONTD.

NEGATIVEIMPACT

Negative impact of Nano are formidably small in front of its positive impact,

nevertheless for the sake of analysis-

The first and most obvious will be the congestion brought about by a cheap

four wheeler.

Vehicle distribution, sales and service may also see changes in the post-Nano

world.

The challenge of sales and after sales is massive and efficient strategies will

be needed to catch up.

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SWOT ANALYSIS

STRENGTHS

Ultra affordable cost will appeal to

masses.

Highly fuel efficient with fuel

efficiency 20+ kmpl.

A strategy for next phase of

expansion is already in place.

Low pollution level with BHARAT

III and EURO IV compliance.

WEAKNESSES

Weak body will not withstand a

mildly hard collision.

Coping with production and sales

magnitudes will be hard even for a

biggie like TATA.

Coping with enough service

centers will be a tough task,

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THANK YOU

tata nano1

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