THE PEOPLE’S CAR

PRESENTED BY :DHIRENDRA SUMAN

MONIKA THACKARDEEPESH SETHIGAGAN BAZWA

• India's record in road deaths has touched a new low, as toll rose to at least 14 deaths per

hour in 2008 against 13 the previous year.

While the toll was only 84,430 in 2003, it crossed 1.18 lakh in 2008,

In fact, 4.69 lakh people were injured in road accidents in 2008, nearly four times the total

death toll.

While trucks/lorries and two-wheelers were responsible for over 40% deaths.

DREAM OF RATAN TATA

NANO

The People’s Car

VISION

INTRODUCTIONThe Tata Nano was introduced at the 9th auto expo by Tata

Motors in New Delhi, India on Jan. 10, 2008.

Car delivery to customers started in July, 2009.

Tata Nano is made for medium class family, it is Small, affordable and Stylish Car.

The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating

agency CRISIL.

MARKET POTENTIAL

1. GEOGRAPHYICAL2. FAMILY SIZE

3. DEMOGRAPHICAL4. INFRASTRUCTURE

MARKET

• India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.

MARKET REPORT

CONCENTRATE ON TIER II & TIER III CITIES

Source : MGI report

Source : MGI report

Source : MGI report

Source : MGI report

The middle class segment in boomtowns by 2016

LOW IN-

COMEASPIRANTS MIDDLE

CLASS HIGH INCOME

02000400060008000

10000120001400016000

2007-08

2015-16

2007-082015-16

Source: Marketing White Book ‘09

More than half of the households will be middle class by 2016

1998-99 2001-02 2004-05 2007-08 2015-160%

10%20%30%40%50%60%70%80%90%

100%

Chart Title

high incomemiddle classaspirantslow income

Source: Marketing White Book ‘09

Automotive Component Manufacturers Association of India (ACMA)

Automotive Component Manufacturers Association of India (ACMA)

Automotive Component Manufacturers Association of India (ACMA)

Automotive Component Manufacturers Association of India (ACMA)

Automotive Component Manufacturers Association of India (ACMA)

JD POWER Report

- 23rd SEPTEMBER,2010

‘ROADS’ TO SUCCESS » » » »

(SOURCE: GOVERNMENT OF INDIA,MINISTRY OF ROAD TRANSPORT & HIGHWAYS,2008-09)

‘ROADS’ TO SUCCESS » » » »

(SOURCE: GOVERNMENT OF INDIA,MINISTRY OF ROAD TRANSPORT & HIGHWAYS,2008-09)

SWOT ANALYSIS

• Low Price & Stylish• High fuel efficiency• Space-Internal-21%

more than Maruti- 800 External-8% less than M-800

• Tested successfully

• Less Boot space• No Headlight

levellers• Not fit for hilly

terrain• Small Tyre• No passenger side

mirror

• Created a Niche market

• Diesel & Electric variant

• Royalty

• Developing low price engine

• Auto Finance

• Create Employment

• New competitor – Bajaj, Cheery, Honda Siel, GM etc.

• REVA an electric car.• Traffic congestion.• Government may

increase taxes in metros.

• Rising cost of raw material.

• Reducing Parking Space.

Strength Weakness

Opportunity Threat

STRATEGICFRAMEWORK

PRICING STRATEGY Though the one lakh price tag was 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. To accept this challenge the following strategies are followed:-

– Target costing method– Penetration pricing– Low pricing policy with minimum profit margin.

WHAT MAKES IT SO CHEAP

PERSONALIZATION

• Tata launched two special editions of Nano at Auto Expo 2010

• Called “Nano for him” & “Nano for her”.

“Nano for her" comes with decorated

interiors – cocktail red spilled over dashboard, seats and central console. Exteriors too get floral pattern to lure the fair sex.

“Nano for him" is available in an exclusive

wild lime colour shade. It also gets leather seats and door pads.

TARGETMARKET SEGMENT

TARGET MARKET SEGMENT

• Two wheeler market.(nearly 75% of Indian population travels on two wheeler)

• Second car user.

• Middle and lower income group people.

CONSUMER SEGMENTATIONURBAN & SEMI-URBAN AREA:-

•SEC-A•SEC-BWhich

Which Is Shown In This Table:-

Economic status SEC-A SEC-B SEC-C SEC-D SEC-E

Average Monthly Household Income

18549 10911 6776 5112 4219

SEGMENTATION CONTINUED…………

• Segmentation In Different SEC’S is Shown in this Graph:-

SEC-A SEC-B SEC-C SEC-D SEC-E0%

10%20%30%40%50%60%70%80%90%

100%

upto 1250012500-2500025000 Above

URBAN INDIAN CONSUMER PYRAMID

Sec-aSec-b105 million30%

Sec-c79 million 23%

Sec-dSec-e159 million47%

Contd……………

• Target Area is sec-a & sec-b (a) More people in between income 12500-

25000 (b)SPENDING ON PUBLIC CONVEYENCE: (i) sec-a=13% (ii) sec-b=12%

DEMOGRAPHIC ANALYSIS of BANGALORE CITY AS SAMPLE

• PROFESSION BASIS• AGE BASIS• GENDER BASIS

PROFESSION BASIS

AGE BASIS

GENDER BASIS

Competitive Analysis

•Maruti 800;with almost equal features to nano

•Maruti Alto(std):2.60lakh and 1 year warranty and 3 free service. Under true value initiative you can get your old car

exchanged.•Bikes: Price between (50000-80000) with engine capacity between (120cc-

220cc)

Nano Vs Maruti 800

TECHNICAL SPECIFICATIONDESCRIPTION TATA NANO MARUTI 800

LENGTH 3100mm 3335mm

BREADTH 1500mm 1440mm

HEIGHT 1600mm 1500mm

WHEELBASE 2230mm 2175mm

ENGINE 624cc; 2 Cylinder 796cc; 3 cylinder

MILEAGE 20kmpl 15kmpl

WEIGHT 600kg 650kg

Nearest Domestic Car Rival:

Maruti 800, Reva, Oreva Super

Nearest International Rival:

China's Cherry QQ which retails for 3,600 dollars.

Petrol Engine2 cylinder petrol all aluminium Engine

624 ccBosch multi-point fuel injection (mpfi)

VariantsModels Ex-showroom

prices

Nano Standard Rs 1,23,360Nano Deluxe-Cx Rs 1,51,360Nano luxury-Lx Rs 1,72,360

Diesel Engine

Jointly developed with Diesel Engine specialist FEV 684 cc

Smallest Common Rail Turbocharged Diesel engine

Engine Options – Petrol, Diesel, Electric.

Vehicle Summary

Body Type Hatchback

Seating Capacity 4

Transmission 4 Speed Manual

Suspension McPherson strut & Independent coil spring

Brakes Front Disk, Rear Drum

Kerb Weight 580 Kgs

Fuel Tank 30 Liters

Ground Clearance 180 mm

Wheels 12 inch

CREATING AND SOURCING NEW CAPABILITIES

• Various companies reached out for making the world’s cheapest car:

• Germany’s Bosch – new engine management system• Italy’s I.DE.A. – styling n interior deign• India’s Sona Koyo – light weight steering shaft• Japan’s Toyo – engine cooling module• Germany’s Behr – heating, ventilating & air – conditioning

system.• India’s Madras rubber factory – tougher than normal rear

tires

SAFETY

Car exceeds current regulatory requirements with a strong passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.

CRASH TEST OF ‘NANO’

CRASH TEST OF ‘CHERRY’

SALESPROMOTIONS

PROMOTIONS

* Enough use of one of the most important element of promotion mix , publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:-

* Publicity as “One lakh car” by word of mouth.

* Auto expo 2008,New Delhi & Geneva.

* Publicity through print & electronic media.

* Internet will be a major media for advertising.

PROMOTIONS

Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online .

Social Media communities:-Official Orkut community Members – 11,448 Official Facebook Group Fans – 9,191

Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing this post) No. of Blog Posts - 61,664 TATA has a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community

WEBSITE OF ‘NANO’

NANO - GEARS

PROMOTIONS

PROMOTIONS

SOCIAL MEDIA

DISTRIBUTIONTATA, it’s business has been extended to the

overseas i.e. to the Europe, Africa, U.S & Australia.

Hence it has large number of showrooms in India & outside of India.

The exclusive showrooms are the best distribution channels for TATA itself.

SERVICE MIXAs Tata is going to provide this car with rupees one lakh only, so it may not give the same service like it’s other vehicles.

But it’s post purchase services will be better than a costlier bike.

Customers will get minimum three services from Tata in any of it’s servicing center, all over the country.

OUR SELLING STRATEGY Awareness campaign through advt.

tools, projecting as VALUE ADDED PRODUCT (more mileage,safety,easy to buy, very convenient to drive).

Persuasive advertisement justifying switching over to 4 wheeler from 2 wheeler (considering safety at a low cost and non affordable medical expenses in case of an accident i.e. 2wheeler are more prone to accident).

Target middle & lower middle cost, income ranging 2 lakhs - 4 lakhs per annum

NICHE

HIGHER CLASS

UPPER MIDDLE CLASS

MIDDLE CLASS

FUTURE MARKET Can be used in hotels as a pick n drop

vehicle.

Parents can be encouraged to provide their children with nano instead of 2- wheelers, to ensure safety.

Project Nano as pollution free & environment friendly

Strike a deal with builders & colonisers like Eldico ,DLF , Sahara etc. to give Nano to each flat buyer because small cost of Nano can be easily absorbed in huge cost of property & thus making the flat purchase more attractive

FUTURE MARKET- ‘nano taxi’

REACTIONS ABOUT NANO• "It's a good historic moment for the Indian auto

industry and also a proud one indeed that an Indian company took a step forward on this road. Its an up gradation for an auto wheeler rider to by a car now.“

Rajesh Jejurikar, Managing Director, Mahindra and Renault's.

• "It's good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment.”

Said Jagdish Khattar, Former MD of Maruti Udyog Limited

REACTIONS ABOUT NANO"Meeting the proper quality standards and safety is not

feasible at all in such a model.Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India.

"I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drives to great success with the Rs one lakh car, but it is not included in our plan.“

• Thomas Kuehl, Board Member, Skoda Auto India.

AWARDS

THANK YOU