TATA NANO : Peoples car

presented by:
Leonie Dennis
Samrat Jain
Ankur Singh
Prateek Singh
Harshit Chandra
Nitin Bharti
Rajeev Ranjan

INTRODUCTION
Founded by Jamsetji Tata in 1868
over 100 independent operating companies in

more than 100 countries across six continents

65.8% of the ownership of Tata Group is held in
philanthropic trusts.
Tata Sons is the principal investment holding
company and promoter of Tata companies
There are 29 publicly-listed Tata enterprises with a
combined market capitalization of about $116
billion (as on March 31, 2016).
Chairperson of Tata Mr. Cyrus Pallonji Mistry

PASSENGER CAR MARKET

Production - 3.23 million in 2012-13

expected to grow at CAGR of 13 per cent during 20122021, as per data published by the Automotive
Component Manufacturers Association of india (ACMA)
Passenger car sales stood at 1.89 million units in 201213.
Basic categories in car market
1. Hatchbacks
2. Sedans
3. Suv
.
newly-launched model are now termed as crossover
.
The Indian market continues to be dominated by
hatchbacks

Overview of the Peoples

Car
World's
Cheapest Car
Only made &
sold in India
currently
Launched in
2009
Designed and
manufactured
by Tata Motors

What makes it so cheap?

SEGMENTATION
Lower middle class and middle class
Two wheeler riders

POSTIONING
TATA NANO tried to positioned as Logical
Upgrade for a family of four with two wheeler

It also tried to attract the small car buyers like

Maruti Alto, Maruti 800, etc.,
Cheapest car
One lakh car
Youth car

Marketing Mix
Product
Nano was presented at the 9 th Annual Auto Expo on
January 10, 2008 in New Delhi
Aimed Primarily at Indian Market
Price
Target costing method
Penetration pricing
Low pricing policy with minimum profit margin

Place
Tata Motors has an extensive dealer network covering
Indian and International markets
Promotion
Publicity as One lakh car by word of mouth
communication
30 million hits
Received 2Lakh applications

SWOT
Internal Strengths

able to up capacity in previous case so proven its doable (pg 4 of case)

brand strength / awareness = strong domestic player 64% market share in India, leader in commercial
market)
first to market advantage R & D (37 patents for Nano, over 3000 engineers)
supplier / partner relationships demand driven
large portfolio with global presence

Internal Weaknesses

Safety concerns
inability to produce products to meet
demand in timely manner
People don't want to buy 'worlds cheapest car, customers want
trendy

External Threats

fuel costs
recession / hard economic times
head hunters / poachers
volitality and pressure of competition high in
auto industry

External Opportunities

recession / hard economic times

BRIC economy growth
demand for smaller cars (congestion and envt)
growth of local car buying market
opportunity to expand model to other BRIC
economies

PORTERS
FORCES
High

Attributes of car for Indian

buyers

CBBE model

Convenience: True
Comfort: Doubtful as Boot space etc were less
Pride: Strong No
Status Symbol: Doubtful
Display of smartness: Doubtful
Economic/ Easy on pocket: True
Mileage/Fuel efficiency: True
Power: Doubtful
Car personality: Very weak

REASONS FOR THE LACKLUSTER

PERFORMANCE OF TATA NANO
Car is an aspirational product
Social symbol
Singur issue
Car catching fire
Clumsy marketing strategy
Poor road conditions
Longer waiting lists.

MENTAL MAP

CORE BRAND VALUE

Low price
Its a common mans car
Middle class group

conclusion

Complacency
Unclear target audience
Confused customers

Recommendations
Position Strategy should be different for rural,
urban , and Smaller cities
Promotions were based on Affordability
Not on attributes like performance, efficiency..
Used Car Market had much competiton