TATA NANO

Presented by:
……………………..
………………………
 INTRODUCTION

THE NANO
 Product of TATA MOTORS, one of the leading vehicle manufacturing company in the world.
Launched during 9th Auto Expo on 10 Jan, 2008 in New Delhi.
Designed and introduced as substitute of two wheeler for small sized middle class families for safe
city ride.
“world’s smallest and cheapest car” and most fuel-efficient which is known as “ people’s car” at
INR 1 lakh price tag (about $2500).
Built with the intention of manufacturing and selling in India

Khushiyon ki chabi
 THE NANO…
 Received highly favorable coverage and appreciation from both domestic and European
journalists.
TML planned to produce 3,50,000 Nanos at a plant being built at Singur, WB.
Conflict at Singur.
 In September 2008, shift to Sanand, Gujarat – which delayed in production of 18 to 24 months.
 By not postponing the much anticipated launch, TML started to produce 50,000 Nanos
temporarily at Pantnagar plant, Uttarakhand.
In the year 2013 Tata motors re-launched Tata Nano with all new features and advertising
campaigns. “Why not buy a Nano when it gives everything at a half price”
Besides Nepal, Tata Motors has launched the Nano in Sri Lanka at 9.25 lakh Sri Lankan rupees.

Khushiyon ki chabi
Idea Generation
 Vision
Replace the two wheelers.
Safe & comfortable means of transportation.
Low cost product can be effectively designed and developed.

Mission

 To strengthen the TATA brand and create lasting relationship

 Create shareholder value by generating returns.
 To be the most admired multinational Indian car company producing car that people love to buy.
 Objective

To make comfortable and safe ride of two wheeler for nuclear families in the city life.
To establish customer brand loyalty, maintain position as the lowest priced car within the
market.
To increase sales in the long term by a successful marketing campaign.
Wants to make transport easily available to a common man.
Specifically designed covering middle and small market segments.
Impeccable, attractive, Eco-friendly, small and comfortable vehicle. Product
Has an automatic transmission system and petrol engine for gear that is helpful in improving the
mileage and efficiency.
Light steel is used for cost cutting.
Comes in a small and compact size but whose technology is more superior than some
other products that are available in the market.
Varieties like Nano LX, Nano CX, Nano XE, XM, XT, XMA, XTA, CNG XM, Nexus, etc.
Penetration pricing policy.
Designed to create an alternative for two wheelers at a nearby pricing range.
Projected as an affordable car with an initially price tag of INR 100,000.
As a commitment was given to the consumers at INR 100,000, the company decided to bear
the loss and the first few cars were delivered at the decided price.
“A promise is a promise” – Ratan Tata
Able to achieve low and realistic prices by minimizing on the costs and cutting on the
unnecessary luxuries.

Price
Nano Standard Rs 123,360
Nano Deluxe-Cx Rs 151,360
Nano luxury-Lx Rs 172,360
Nano XE – Rs. 236,000
Nano XT –Rs. 293,000
Nano XTA – Rs. 335,000
NanoCNG XM –Rs. 297,000
 Place

All TATA Motors showrooms.

Second largest dealer and service network in India (with existing TATA dealers).
The customer can purchase either through the sales office or any organized event and
make a booking or online booking or bookings via the telephone.
Wide spread distribution network of its parent company that covers every corner of the
country.
Booking at banking partners, like SBI branches.
 The company has gone for a strategy of direct marketing for this product.
Create a brand image for itself separate from its parent company.
Today each section of the society is aware of this product because of its high publicity.
Multiple bank partners promoted the nano brand during booking jointly with TATA motors.
Mouth Publicity, newspaper, magazines, televisions, online nano games, social sites and
official websites -create awareness about the product.
Different expos and rallies. Promotion
Length:- 3.1 mtr
Height:- 1.6 mtr Features Wide:- 1.5 mtr
Weight:- 600 Kg
Mileage:- 20 Kmpl Fuel tank:- 24 Ltr
Engine:- 624 cc 2 cylinder (Petrol) Top speed:- 95-100 Kph
Gear box:- 4-speed Ground clearance:- 180 mm
Brakes :- Drum wheel size:- 12 Inch
 Two Wheeler Market
Second hand car user
Targeted towards the families belonging to middle class segment.
About 76 % of all vehicle sales in India are of 2 wheelers and remaining are
passenger vehicle.
Youngsters who are generating incomes independently.
Strength weakness
 Price  Wrong positing of price
 Mileage  Low Engine capacity
 Style  Not suitable for hilly areas
 Brand Name  Delay due to conflict

Opportunity
 Huge number of Two wheelers
riders
 Second hand car user can divert.
 Large no. of earning youngsters.
Threats
 Perception as cheap car
 Upcoming low budget cars
 Bad impression
 Increase in raw materials
 Strength
Major strength – affordable price which created a sensation all over the world.
Even US president Obama praised the nano, which soon spread across the world.
Good fuel efficiency.
 Easy to drive in traffic conditions.
Low maintenance and handling cost.
 A huge buzz was created in the global automobile industry being a ‘common mans’ car.
 Excellent Publicity in social media, newspaper, other media, online ads etc.
 Weakness

 Positioning “world’s cheapest car” lead the product as not reliable.

Perceived as a cheap product which repels the aspirational customers.
The launch price was 20 – 50% higher then the proposed rates.
Production delays due to political problems (shift from WB to Gujarat).
Not suitable for hilly areas.
Engine used to make a lot of noise and people even started comparing it with an
auto riksa.
Interiors were dull with insufficient leg space.
Proving to be unreliable due to technical glitches.
 Opportunity
Considered to be a vehicle of convenience to drive in metro traffic.
Create employment opportunity.
Two wheelers and second hand market can be motivated.
Increase in buying power of the younger generation.
Should have been marketed as a utility car or affordable car rather than a “cheapest car” and
acquire new customers.
Increase in per capita income.
 Threats
Customer perception as a cheap car.
Cars like H800, Maruti Cervo 600cc, Alto, Chevy Spark and second hand vehicles, Bajaj -threats to
further growth.
 Not suitable for long drives and for highway drives due to low engine capacity.
Bad impression due to late distribution in the market.
Rising cost of raw materials.
Low availability of parking space.
 Government tax policy on brand new car
Why the product is failed?
Failed in customer expectations:
Customers require product which would be an aspiration to neighbours,
“Neighbours Envy Owner’s Pride”.
Failed to understand demand:
Overall, people expected a good car, and nano was just a utility vehicle where a person would be
confused between a good bike or a cheap car.
Failed to understand the targeted use:
People wants a car which would be spacious for his family, nano failed here comprehensively.
Price
Price should be fixed as promised, TATA nano promised to give a car at 1 lac but then it
raised its price from 1 lac to 1.2 lac and then 1.5 lac.
• Product
It has neither speed nor power, nor build to handle
highway and muddy road. This car fails miserably while
climbing hilly areas.
• Promotion
Company promoted this product as “cheap car”. This
hurts the ego of buyers.
• Inability to manage PR
Everyone got to know of the incident of nano caught
fire that weakened the trust on Nano. Thus, managing
PR is very important.
• Initial waiting period
Initial waiting period which was too high that makes
several customers go away empty handed and divert on
other vehicle.
Conclusion
Designed and introduced as substitute of two wheeler for small sized middle class families for safe
city ride.
“world’s smallest and cheapest car” and most fuel-efficient which is known as “ people’s car” at
INR 1 lakh price tag.
Although the car was good to target market, the positioning was of its price tag weaken the image
of the car.
A car which is little higher priced than an iPhone could not get space in the market and peoples
home, only got space in news, and media gossips.
Certainly revolutions aren’t usually neat and tidy to start with; hence Nano too is a revolution in
Indian Automobile history.
Manufacturing a good product is very important, but more important is to make space in the
market rather than in medias, which TATA NANO could not do.
A product will be priced after the production but in case of Nano, before its innovation the price
tag was fixed because of which lots compromise have to be done.
Reference:

https://www.tatamotors.com
https://www.tatamotors.com.np
Interviews, News articles,