Presentation-Nano-29 Jan-01_v2

8/7/2019 Presentation-Nano-29 Jan-01_v2

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TATA - a Revolutionary

ITM- XMBA Batch 34

- Terence Fernandes

- Bhavesh Bhanushali

- Philip Thankan

- Wilson Monteiro


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TATAGROUP


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CATEGORY - AUTOMOBILE

Automobile

PassengerCars

Trucks

CommercialPassengerCarriers

Utilityvehicles

DefenseVehicles

2 Wheelers

3 -Wheelers


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KEYAUTOMOBILE PLAYERS


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MARKET SHARE


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PASSENGER CAR - MODELS

Indica

Vista

V2

Xeta

V2

Indigo

Manza

CS

Marina

XL

Nano

Basic

CX

LX

FIATCars


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Nano is often used to mean small

Launched Nano on March 23, 2009.

Bookings started on April 9 to April

25

Launched using a tag line as

Peoples Car


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TATANANO TARGET SEGMENT


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NANO LXVS OTHER CARS


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SALES FIGURES FOR NANO


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NANO BRANDING 5 LAWS

Law of the word- The tag line used a Peoples Car meant anybody can

own it. A car for everyone.

Law of Publicity- 1 lakh price tag generated lot of curiosity about

its possibility and hence gathered media attention

Law of Credentials-Low Cost Car

-High Fuel Efficient

-Small Car


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NANO BRANDING 5 LAWS

Law of Siblings

Tata Nano Electric

Tata Nano Diesel

Law of Advertising

Achieved lot of publicity due to low cost tag. To maintain the

interest and to keep cost low, Tata decided innovative way of

marketing

Advertisement on Radio

News paperWeb

After burning incidents, this strategy was modified and

now advertisment is done on TV.


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TATANANO PROBLEM & CHALLENGES


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TATAS RECOVERY PLAN

Tata appointed group of experts from foreign automobile industry toreview NaNo designs. Experts did not find major faults and suggested

few changes.

Tata implemented suggestions in new models and recalled 30,000

Nano cars for fitting security kit as suggested by experts.

All the NaNo car customers will get security kit free if they insisted.

Tata organised 12000 km rally from Sanand plant in gujarat. Three

groups of 3 Nana cars each travelled to North, South and East. Rally

was successful with no problems reported.

Offered 4 yrs 60000Km warranty.

Comprehensive maintenance contract at Rs 99 / month

100% finance at 5% interest rate is also available.


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Strengths:

Low Price & stylish

High fuel effeciency

Brand name,

First innovation 35 Patents for innovation

Environmental friendly- Green House Effect

Variometric Gear System- Magnifies Torque

Tested successfully for crumple zones

SWOT ANALYSIS


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Weaknesses:

Fiber body,

Low suspension power,

Low engine capacity,

Light vehicle, Not suitable for hilly areas

Less Boot space

Poor engine cooling & hence over heating

No headlight levelers

No modern facilities- ABS, PS, AC

SWOT ANALYSIS


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Opportunities: Bikers can be motivated

Created a Niche Market

Creates Employment

Auto Finance

Diesel & Electric Variant

Developing Low Price Engine Oil

Threats:

New Competitor- Bajaj, Honda Siel, GM etc.

REVA an electric car

Traffic Congestion Government may increase taxes in metros

Rising cost of raw material

Reducing parking space

SWOT ANALYSIS


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4 PS OF MARKETING

1.Product:Tata has a very wide range of products it has passenger cars,

utility vehicles, Trucks, Commercial passenger Carriers and Defence

Vehicles.

The Tata Nano is a rear-engine,Four passenger ,city car built by Tata Motors,

It was first presented at the

9th annual Auto Expo on 10 January 2008,

at Pragati Maidan in New Delhi, India.

From Singur to Pantnagar (Uttakrkhand)

Aimed primarily at the Indian market


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Price: Received Media attention due to its targeted low price Tata always have something for the lower class people with Nano

being their trump card.

Giving discount every month and special promotion for certain

type of vehicle also one of the strong strategy use by Tata Motors.

Pricing strategies:

Penetration pricing

Low pricing policy with minimum profit margin.

Though the one lakh price tag is not fixed by TATA group, it was the

word of mouth of people which fixed that range.

This expectation of people creates a big challenge for the company

4 PS OF MARKETING


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Place: Tata Motors has an extensive dealer network covering Indian and

International markets.

The channel of distribution, physical location, and dealership method of

distribution and sales is generally adopted.

The distribution of vehicle must be in a very systematic way,

from the plant to dealership and to end user.

This is not only in India itself but also to the world-wide dealership

Promotion: Tata motors promote their products via Advertising and after

sales services.

Enough use of one of the most important element of promotion mix,

publicity reduces the necessity of other promotional devices for Nano. Publicity as One lakh car by Word to mouth.

Auto expo 2008,New Delhi & Geneva

Publicity through print & electronic media

4 PS OF MARKETING


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BCG MATRIX


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BCG MATRIX- TATA MOTORS

STARSQuestion

Marks

Dogs

Cash cow

Relative Market share

x

0.1 x10x

Market

Growth

Rate (%)

0

10

20


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Market

Share

Growth

Rate

Earnings Cash

Needs

Strategy Egs

High High High,

Stable

Growing

High Invest,

Integrate,

Take Over

Low High Low,

Unstable,

Growing

High Harvest,

Divest

High Low High,

Stable

Low Maintain

Dominance

&

Leadership

Low Low Low,

Unstable

Low Divest,

Liquidate


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ANSOFF MATRIX


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ANSOFF MODEL

Market penetration strategy

Attract competitors customer:

y Launch worlds first cheapest car campaign.

y Highlight value for money.

y Good and wide spread service network.

Convert non user into user:y Special schemes for youth and middle income group like

zero down payments, low interest rate or a low EMI.

Market development

Geographically:

Launch in major emerging economies like Brazil, Russia, etc.


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ANSOFF MODEL

Product developmentQuality improvement:

Improve power and pick up.

Better and comfortable interiors.

New product development:Develop LPG and CNG versions for petrol versions.

New technologies like hybrid and electric versions.

Feature addition:

Smart security system .

GPS.

Parking assistant.Rear wash wipers


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ANSOFF MODEL

Product line extension:

Launch new model with more boot space and leg room.

Diversification

Car insurance.

Car finance.

Consultancy services on R&D.

Integrative Growth

y Forward integration:

y Open its exclusive showrooms and dealerships.

yBackward integration:y Entering manufacturing of key auto ancillaries.

y Horizontal integration:

y May acquire automobile R&D firm.

y Overseas acquisition.


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CONCLUSION

Expand the Indian car market by 65%, according to rating agency

CRISIL. The low price makes the car affordable for families with incomes of

Rs 1 lakh [1,00,000] per annum

The increase in the market is expected to push up car sales by 20%

over the previous year.

Thus, the Indian Economy is expected to remain strong and grow in

2009

Presentation-Nano-29 Jan-01_v2

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