Project Report

On

Consumer Attitude towards

TATA NANO

Submitted to: Prof. Tripti Ghosh

Submitted by-: Parth Arora-1078 Gagandeep Singh-1079 Rishub Pal-1080 Tushar Sardana-1081 Rohit Shukla-1082 Kuldeep Dixit-1083 Mayank Shukla-1085

Executive summary
Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1.5lakh i.e. approximately USD 2000. It is manufactured by Tata Motor Limited, the largest to automobile company in India. Its Chairman, Mr Ratan Tata envisions that Tata Nano become a Peoples 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 mileage 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 with 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 in Malaysia, only Nano CX will be brought to Malaysia and will be sold here. The purpose of this research is to find the attitude of the customers, for this we have defined the objective of the research; we have also done sampling and finally data analysis.

Environmental Context of the problem

NANO which is a brain child of Ratan Tata raised hope for a lot of lower Middle class families by giving them the status of owning a car. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find whats inside NANO? The only factor the customer knew in advance was its price tag of 1 lack as conveyed by Ratan Tata. But why it was not a big hit and why is it still lagging to grab the market in spite of its good and convincing features?

Industry Overview
Price itself was a major strength factor for the mini magical vehicle which created a sensation all over the world. Even US president Obama was all praises for the Nano during his Indian visit, an appreciation which soon spread across the world. The five seater car Nano from Tata finally arrived in the market. The strengths of the product included its small size, ease in handling and good mileage efficiency. It directly took on the motorcycle market and tried to attach a status symbol to itself such that customers prefer the Nano above buying a motorcycle. Thus they get a four wheeler instead of a two wheeler. However, sales did not

The launch price came in two variants ranging between 1.2 lacks to 1.5lacs. It was 20 50% higher then the proposed rates which was a major setback to customers. Within a few months of initial sales, technical problems were found in the product and there were a few reports of Nano catching fire, which further weakened the trust for the brand Nano as a whole. Tata also faced political problems and had to shift the plant location which led to production delays. And now due to inflation, Nanos prices have further increased due to increase in the prices of raw material such as steel, rubber and others. Happen as expected and Tata Nano lagged behind.

External Enviornment
After the launch of Nano there were many manufacturers who wanted to take advantage of the hype of the Tata nano, and started working on manufacturing an alternative for Nano. Upcoming cars like H800 from Hyundai priced around 1.6 lac, Maruti Cervo 600cc priced around 1.7 lacs to 2lacs were imposing threats to further growth of Nanos market share. Vehicles like Alto, Chevy Spark and second hand vehicles were major substitutes for Nano. People were looking for alternatives for the main reason that it cannot be much used for driving in highways or long distances as the engine cc is low. The main threat was from an indirect competitor Motorcycles. Nano was in between motorcycles and car and it was proving to be unreliable due to technical glitches. Thus some people were going for the cost effective solution of buying motorcycles thereby affecting Nano sales. Though Nano is considered to be a boon for middle class people, it is most often bought by the people who already own one or two cars!! Nano is considered to be a vehicle of convenience to drive in metro traffic. Nano 2012 is a new ray of hope in increasing number of sales and making many satisfied customers. The increase in buying power of the younger generation is a major factor for Indias automobile growth. Tata Nano diesel priced at 3.5lacs has already created a hype among its customers as Tata is known for its diesel products with high mileage efficiency like Indica and Indigo CS. Even Ratan Tata has admitted that they were wrong in the positioning of the Nano and that the initial marketing effort was poor. Instead Nano should have been marketed as a utility car rather than a cheap car. Many manufacturers are still striving hard to compete with Nano, even they will have many drawbacks and failures and it should be a better product than Nano. Certainly revolutions arent usually neat and tidy to start with; hence Nano too is a revolution in Indian Automobile history.

Objective of study We are going through a study for identifying The customers attitude towards TATA NANO. Why TATA NANO was not able to leave mark on Targeted customers heart, what were the constraints which lead to downfall in the estimated sales for the much awaited Family Gift.

Approach to the problem:

We selected the Questionnaire survey for the course of action, to get the new ideas and insights about the perception of the people. We targeted the young executives as they are the key potential buyers of Nano. We decided to go for a closed ended questionnaire with a rating scale ( in most questions) so that it become easy for both the respondents and us to administer it and easily tabulate and analyse it. We also pre-tested it two within the group so, as to make the questions error-free and accurate so that it can reveal relevant and accurate information that we require to analyse the problem.

Research Design:
A research design is a framework or blueprint for conducting the marketing research project, in our project we would go for conclusive research design. We adopted conclusive research design because we wanted detailed information. For secondary data analysis we referred to the websites of Tata nano and some famous blogs and interviews. We went for the questionnaire survey as that is the most effective. The sampling method which we used was non-profitability sampling method. Our sample size is 200-250 in the area of Greater Noida.

Research techniques:
Some of the Survey Methods which we will use are: Traditional interviewing Personal interviewing Mail interviewing Electronic interviewing

Data Analysis:

In this we would be using Graphs and pie charts to make the questionnaire more clearer.

Budgeting the project:

Budgeting and scheduling help to ensure that the marketing research project is completed within the available resources-financial, time another. We will use CPM(critical path method) approach which will enable us dividing the research project into component activities,determining the sequence of those activities and estimating the time required for each activity. Our estimated budget is expected to be 500000 and estimated time for the research will be 2 months.