...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 ...
Words: 4004 - Pages: 17
...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...
Words: 4758 - Pages: 20
...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 $2500, as said by Ratan Tata, the Chairman of the Tata Group at that point of time. It became a dream car for every person belonging to the lower middle class and even the lower class. However the ministry of transport also raised concerns about the congestion on roads that the car would bring in as people may start to use it regularly for their day to day transportation. Marketing Plan Tata Motors basically Segmented and targeted the following groups of Indian population: 1. The Middle class Mainly the lower middle class Upper lower class 2. Usually the two-wheeler users 3. Family with 3-4 members who have troubles while travelling on a 2-wheeler. Tata Motors positioned the...
Words: 2480 - Pages: 10
...The case discusses the making of Tata Nano, the world's cheapest car, manufactured by India based Tata Motors. On March 30, 2009, Tata Nano was launched with an ex-factory price tag of INR 100,000 (about US$ 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.....
Words: 1782 - Pages: 8
...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...
Words: 5923 - Pages: 24
...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...
Words: 6332 - Pages: 26
...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...
Words: 4810 - Pages: 20
...Research The actual goal of the research process is to evaluate the customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. Scope of the Research The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano. It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success. Factors of the Research The main factors of this project are as follows: * The overview of the Indian automobile industry * The detailed information on the buying behavior of the customers when they buy cars Research and Study Within the process of completing this research, hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of secondary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to...
Words: 1537 - Pages: 7
...Introduction: The Tata Nano also called one-lakh car is a city car manufactured by Tata Motors, a car company based in India, is quickly becoming a new star in the car industries as other big names in industries such as Toyota and General Motor are suffering losses due to the economic crisis. One of the smallest as well as lowest powered cars in the world, it was designed to be the cheapest car in India aimed mainly at the lowest price segment in the Indian domestic market. The Nano sold in India is a 624cc, rear-engine (for a less complex and hence cheaper transmission), manual transmission, four-passenger, four-door car. The car lacks power steering and safety features like air-bags and ABS. Assemble line is in Pantnagar, Uttarkhand, India and Charodi, Gujarat, India (since June 2010). The car was launched in the Indian market in March, 2009 with a pre-launch price offer of 100,000 (US$ 2100). II. History: 1945 - The Company was incorporated on 1st September at Mumbai to manufacture diesel vehicles for commercial use, excavators, industrial shunner, dumpers, heavy forgings and machine tools. - The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) are now called `Tata' vehicles after the expiry of the collaboration agreement with Daimler-Benz AG, West Germany. The company also used to manufacture pulp and paper making machinery. Seeing an opportunity in the great number of Indian families with two-wheeled rather than four-wheeled vehicles, Tata Motors began...
Words: 375 - Pages: 2
...Reasurch objective To find out the perception about Tata Nano among the youth generation exclusively students studying in Jain university Reasurch deasign Information available: About Tata Tata motors is Indias largest automobile Company it is the leader by far in commercial vahicles in each seagment , and second largest in passenger vahicles market . The company is world's fifth largest medium in heavy commercial vahicle manifacture , world's second largest medium in heavy bus manifacture . Established in 1945 , Tata motors presence inded cuts length and breth of India with over 4 million vehicles which rolled out in 1954 . The foundation of the company is deep understanding of customer needs . About Tata Nano: Tata motors lonched Tata Nano in 2008 , world's cheapest car ₹ 100,000. Ratan Tata the chairman of Tata group and Tata motors promised India to build " World's cheapest car " and now it's done , it was defined by the company as ' a comfortable , all weather car, with high on fuel efficiency and low emission ' Characteristics of Tata Nano : Cheap:- Nano is considered as ' world's cheapest car' which is 'one lakh' due it is considered as "people's car" Fuel efficient engine: It's mileage is 20km/Litre . The luxury models has a Diesel engine Comfortable : Nano has been convinced for four persons . It's space adapted to this. Four doors enable the enterence in the car. Seating space is generous and quiet comfortable it enables the driver to manoveure...
Words: 381 - Pages: 2
...To study the marketing strategies of TATA and how they implemented it for NANO. * To know about the 4p’s of marketing and to study the segmentation, targeting and positioning. * To know about the recent trends that TATA has been using to promote NANO in market. COMPANY PROFILE Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It encompasses seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata Group was founded in 1868 by Jamsetji Tata as a trading company. It has operations in more than 80 countries across six continents. Tata Group has over 100 operating companies each of them operates independently out of them 32 are publicly listed. The major Tata companies are Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan Industries, Tata Communications and Taj Hotels. The combined market capitalization of all the 32 listed Tata companies was $89.88 billion as of March 2012. Tata receives more than 58% of its revenue from outside India. Founded : 1945 Founder(s) : J. R. D. Tata Headquarters : Mumbai, Maharashtra, India. Employees : 59759+ Vehicles: HMV, LMV, Buses, mini trucks and cars. Production: India, Argentina, Thailand, UK and south Africa. Subsidiaries: Jaguar and Land Rover, Tata Daewoo, Tata Hispano. Revenue | US$ 100 billion...
Words: 1778 - Pages: 8
...Section 3, Group 30: Sang Min (121063), Roland Xing(121171) , Tis Xiang(121168), Jolie Zhu(121213) , Sky Xie(121169), Talha Khan(121059) Tata Nano background The country The market The Car • 1.21B Population • GDP +8% • Private Consumption +8% • Middle class growing Tata Nano • Market +17% • 76% 2-wheelers • Fuel-Efficient • Safe • Inexpensive • India car market have huge potentials due to growing GDP and middle class • Tata Nano is known for its low-price Sales Forecast |Q1: Sales Goal for 5 years New Passenger car Buyer Probability of purchasing Nano Compute method 2009 2010 2011 2012 2013 2,058,896 2,305,596 2,581,856 2,891,218 3,237,648 0.0020 0.0020 0.0020 0.0020 0.0020 Sales of Nano Probability of purchasing Nano New 2 wheeler buyer Product limit 50000 2009 2010 2011 2012 2013 51,261 57,403 64,281 71,984 80,609 2009 2010 2011 2012 2013 9,428,664 10,558,421 11,823,547 13,240,263 14,826,731 0.0050 0.0050 0.0050 0.0050 0.0050 Assumption: • Tata Nano buyer comes form new passenger car buyers and 2-wheelers buyers • Market research indicate that Probability of those who initially want to purchase Passenger car turn out to purchase Nano is 0.2% , from 2-wheelers to Nano is 0.5% Segmentation|Q2: How to position Young rural • Pragmatic • Entrepreneurial • Cost sensitive y o u n g Young Urban • Fashionable • High income • High education Young rural • Relatively rich • Entrepreneurism • Fashionable y o u n g ...
Words: 811 - Pages: 4
...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...
Words: 2541 - Pages: 11
...| BRANCH: M. Tech. Design ROLL NO. : -121424016 TRAINING AND PLACEMENT CELL COLLEGE OF ENGINEERING, PUNE RESUME YEAR: 2015-2016 I) PERSONAL 1) Full Name: KASHID ANURAG ASARAM (SURNAME NAME FATHER’S NAME) 2) Present Address: -: Rahi Apartment Flat no. 9. 365, Ganjwe chowk, Navi Peth Pune 411030 Mobile No. : - 9404266841 Email: anuragkashid@gmail.com 3) Permanent Address: -Vishweshwar Nagar Pimpargawhan Road , Beed-431122 4) Male/Female: - Male 5) Date of Birth: - 18/12/1991 Age: 23 Height (cm):170 Weight (Kg): 70 6) Father’s Name: - Asaram Kashid Mother’s Name: - Sanjivni Kashid his Occupation: -Teacher her Occupation: - Housewife II) EDUCATIONAL QUALIFICATIONS:- Sr. No | Examination(Branch) | Institution/University | Year of Passing | CGPA | 1) | S.S.C. (XTH STD) | Champavati Vidyalaya, Beed | 2007 | 81.53 | 2) | H.S.C. (XIITH STD) | D.S.C., Latur | 2009 | 87.83 | 3) | F.Y. I-II SEM. | COEP | 2010 | 7.08 | 4) | S.Y. III SEM. | COEP | 2010 | 6.80 | | S.Y. IV SEM. | COEP | 2011 | 6.52 | 5) | T.Y. V SEM. | COEP | 2011 | 6.52 | | T.Y. VI SEM. | COEP | 2012 | 6.73 | 6) | B.Tech. VII SEM. | COEP | 2012...
Words: 319 - Pages: 2
...and Pune. The questionnaire is available in the Appendix section. DATA ANALYSIS AND FINDINGS: Demographic details of the respondents: Age: Respondents from all age groups were selected to identify how age influences awareness and attitude towards the NANO. The split up is as above. Gender: Around 35% of the respondents in the sample were female, as illustrated below: Annual Income: Annual incomes ranging from Rs. 2, 50,000 to Rs. 17, 00,000 were taken to include lower to upper middle class income groups. The annual incomes of the selected respondents are as below: Number of family members: Data on the number of family members present in a family was also collected to check if there was any dependence between the number of family members and the customer preferring/not preferring a NANO. REGRESSION ANALYSIS: The various factors affecting the perception and acceptance of the customer towards NANO were analyzed using regression techniques via SPSS. The main aim of this regression analysis was to analyze the relationships between a set of dependant and independent variables. The results are as follows: It was found that gender did not play any role in making the customer include the NANO in his/her consideration set or not. The results are as follows: | Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | 1 | .068a | .005 | -.009 | .491 | a. Predictors:...
Words: 2278 - Pages: 10
