A

report
On

New Product Development (NPD) Project

Submitted To
RAJIV GANDHI COLLEGE OF MANAGEMENT
MBA PROGRAMME (2009-2011)

Affiliated To
GUJARAT TECHNOLOGICAL UNIVERSITY

In partial fulfillment of the requirement for the degree

of
MASTER OF BUSINESS ADMINISTRATION

Submitted by
PANDEY DHIRAJ
MANAN OZHA
MAHESH MODI

RAJIV GANDHI COLLEGE OF MANAGEMENT

MBA Campus, Ahmedabad Highway, BALASINOR, Dist-KHEDA
Generation of idea…

1: Brainchild of Ratan Tata

2: Strategy /Idea: Segment accounts for 92% of

the two-wheeler market in India in terms of
sales. With the launch of Nano (Rs 100,000 +
taxes), the spill over will happen from two-
wheeler market to Nano.

4: The engineering team achieved the cost target

5: by implementing an

6: innovative design and reducing

7: cost by paying attention to each and

8: every component of the car

A dream is born – Says, “I observed families riding on two- wheelers -- the

father driving thescooter, his young kid standing in front of him, his wife seated
behind him holding a little baby.Add to that the slippery roads & Night time
too. It is downright dangerous. It led me to wonderwhether one could conceive
of a safe, affordable, all-weather form of transport for such a family.”
Idea screening

1 Will the customer in the target market benefit from

the product?

2 What is the size and growth forecasts of the market

segment/target market?

3 What is the current or expected competitive

pressure for the product idea?

4 What are the industry sales and market trends the

product idea is based on?

5 Is it technically feasible to manufacture the

product?

6 Will the product be profitable when manufactured

and delivered to the customer at the target price?

The next step was the screening of idea. How is this dream
possible? What should they make?  A scooter with two extra wheels
at the back for better stability?
 An Auto-rickshaw with four wheels?
 A three wheeled car like a closed auto- rickshaw??
 A four wheeled car made of Engineering Plastics?
 A Four wheeled rural car?
 Rolled up Plastic curtains in place of windows?
 Openings like Auto rickshaws from the side
 A four wheeled open car with safety side bars?

But the market wanted a car and if they build a people’s car it should be
a car and not something that people would say,“ Ah! That’s just a
scooter with four wheels or an auto-rickshaw with four wheels & not
really a Car.”
Trying to build a car cheap enough for motorcycle buyers seems to
make sense now but seemed crazy several years ago when Rattan
Tata, longtime chairman of Tata Motors and scion of the nation's giant
Tata Group conglomerate, first mentioned his dream of building a one-
lakh car in 2003. "They are still saying it can't be done," he says,
insisting that it can and will. "Everybody is talking of small cars as $5,000
or $7,000. After we get done with it, there will hopefully be a new
definition of low-cost."

CONCEPT EVEOPMENAN
TESTING

1 Develop the marketing and engineering details

2 Who is the target market and who is the

decision maker in the purchasing process?

3 What product features must the product

incorporate?

4 What benefits will the product provide?

5 How will consumers react to the product?

6 How will the product be produced most cost

effectively?

7 Prove feasibility through virtual computer

aided rendering
 T h e c a r s h o u l d b e b u i l t o n a

d i f f e r e n t p l a t f o r m t h a n

c o n v e n t i o n a l o n e s .

 I t m u s t m e e t i n g a l l t h e

s a f e t y a n d r e g u l a t o r y

r e q u i r e m e n t s .

 I t h a s t o b e b u i l t o n a

s c a l e w h i c h s h a l l b e m o r e

t h a n d o u b l e t h e e a r l i e r

l a u n c h e s o f
similar products and the ramp up must be smooth. The car has to
be designed so that it can be exported to other countries as the domestic
demand may not materialize as per projections.  The car must be
a beacon for the Indian Automobile industry and prove to the world that we
are capable to take any challenge and come out worthy
winners.
Market testing

1 Produce a physical prototype or mock-up

2 Test the product (and its packaging) in typical

usage situations

3 Conduct focus group customer interviews or

introduce at trade show

4 Make adjustments where necessary

5 Produce an initial run of the product and sell it

in a test market area to determine customer
acceptance

Business Analysis

1 Estimate likely selling price based upon

competition and customer feedback.

2 Estimate the cost of the project.

3 Estimate profitability and breakeven point
What makes Nano so less expensive can be well understood
from the following diagram The design has to question the need of
each and every component from the point of view of its necessity of
existence and also the minimum requirements of its functionality. Value
Engineering concepts have to be deployed to finalize the minimum
requirements.

Disruptive Technology: Is a Technology that brings radical

change by introducing new ways of doing things usually at a
Technology that is:

Expectations

1 According to one report,Indi a as well as other

nations, such as European nations, have great
expectations from the Nano and are keenly
awaiting it, especially the electric version of the
Nano, making it in all probability the "world' cheapest
electric car“ The car itself is expected to boost
the Indian Economy as well as expan the Indian car market
by 65%, according to ratingagency CRISIL. The Nano, already
in production, ha already been listed in the Guinness Book of
World Recordsas theworld's cheapest car.

Info and Rating

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Uploaded:

10/12/2009

Category:

Research>Arts & Architecture

Rated:

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(1 Rating)

Hi all, This project covers about the New Product Development Process of TATA NANO pls
reply with your comments
initial

car product

nanocar

tata produce

produce tata

would tata

product introduction

product devlopment

(more tags)

initial

car product

nanocar

tata produce

produce tata

would tata

product introduction

product devlopment

introduction department
product came

(fewer)

vamsi.kanth

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