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Nano in America
 

Nano in America

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    Nano in America Nano in America Presentation Transcript

    • NANO in US
    • INTRODUCTION Tata’s International Presence • First Indian engineering company to be listed on New York Stock Exchange • Acquired international companies Daewoo (South Korea), Carrocera (Spain), Jaguar Land Rover (Britain) • Commercial and passenger vehicle cars marketed and exported in Europe, Africa, Middle East, South East Asia, South Asia and South America High Fuel Vision : Best in the manner in which Efficiencywe operate, best in the products we deliver, andbest in our value system and ethics Roomy Passenger PEOPLE’S Minimum Weight Compartment CAR Low CO2 Emissions
    • SWOT ANALYSIS STRENGTHS WEAKNESSES• Cheap car • Does not comply with US safety• Compact, cute and adorable standards• Use for a year and change • Labeled as “cute death trap” inattitude US• Other smart car brands expensive • Unfit for travel on highwayslike Mercedes • Labeled as a kids use car• Easy parking OPPORTUNITIES THREATS• Fuel Efficient • Low profit margins• Environment friendly • Safety low as compared to large• Large single population heavy cars• Large Generation Y• Budget conscious buyers• Sexy factor
    • MAJOR EVENT EFFECT OF THE PROBABILITY OF EVENT ON OUR THE EVENT BUSINESS(+3 OCCURING (0 TO TO -3) 100)Termination of Cash for Clunkers program – POL1 -1 80Obama’s second term /Democrats – POL2 1 60USA emission cut target by 2020 for Copenhagen meetleads to new emission standards for new cars – ECL1 1 60Global protest on resource wastage – ECL2 2 50Hybrid cars becoming technologically superior &cheaper – TEC1 -2 50Increased penetration of Information Technology forconsumers – TEC2 -1 60Change in cultural norms – SOC1 2 70Change in consumer attitudes – SOC2 2 60Revival of Economy – ECO1 -1 70Depreciation of USD with respect to INR – ECO2 -2 70
    • SCENARIO MAPPINGOASIS – Most Optimistic Scenario •Based on consumer awareness and regulatory requirements •Environmental Friendliness •Safety •Cost efficiencyNOSTRADAMUS – Most Likely •Cash for ClunkersScenario •Preference for US products •Depreciation of USD with respect to INR •Nullification of the cost advantage enjoyed by Indian and Chinese car manufacturersCURSE OF BLOSSOM – Most •Increase in purchasing power due toPessimistic Scenario end of recession •Increase penetration level of IT •Breakthrough in Hybrid technology
    • COMPETITOR ANALYSIS OPTIMISTIC MOST LIKELY PESSIMISTICKEY SUCCESS Cost of Customer’s DesignFACTORS ownership brand Convenience Environmental perception Variance friendliness Customer value Fuel efficiency Safety for money Fuel efficiency and environmental friendlinessMAIN Chinese cars US Brand cars US CarsCOMPETITORS US cars imported from Japanese Cars Japanese Cars India & China Hybrid/ Electric Chinese & Indian Cars Cars Japanese cars
    • OPTIMISTIC SCENARIO - OASIS VeryImportant US cars Chinese cars NANO Japanese cars Cost ofOwnership US carsEnvironment Friendliness Chinese cars NANO Japanese cars Safety Chinese cars NANO Japanese cars US cars Less Important Weak Strong
    • MOST LIKELY SCENARIO - NOSTRADAMUS Very Important Chinese cars Japanese cars US cars NANO Brand Perception US cars NANOValue For Money Chinese cars Japanese cars Fuel efficiency US cars Japanese cars Chinese cars NANO Less Important Weak Strong
    • PESSIMISTC SCENARIO – CURSE OF BLOSSOM Very Important Chinese cars NANO US cars Japanese cars R&D US cars Environment Friendliness NANO Chinese cars Japanese cars NANO US cars Japanese carsPurchasing factor Chinese cars Less Important Weak Strong
    • 1 OPTIMISTIC MOST LIKELY PESSIMISTICPoint of Lowest price, fuel efficient Fuel efficient, convenience Mass customization anddifference convenienceBrand/ •Inexpensive •Small •ConvenientImage •Safe •Efficient •HipProposition •Fuel efficient car for short distance •Less pollution car - caters to the •Affordable travel primarily within the city needs of all the low income customers •Budget car with a superior performanceProduct -Basic Model: Comes in 5 different -Nano comes with Basic and -Meet existing US automobile colours. Micro-Hybrid versions. emission standard and safety standard - More colour variance - Tata should also speed up its R&D - 5 different colors. on hybrid technology to launch hybrid version along with gas- - Allow customers to customize - Add some accessories to appeal powered version the car stickers or to add to university students accessories to appeal to the - Leverage brand image of Jaguaar young and modern customer - Leverage brand image of Jaguaar segments - Leverage brand image of Jaguaar
    • OPTIMISTIC MOST LIKELY PESSIMISTICPrice •Recommended price is •Target customers – Price •Target Customers - Less price USD2600 Sensitive. Hybrid version to be sensitive. Price is USD3000 sold at USD3500 with the •Target profit margin is 8% • The profit margin is 15% promise of mileage of 65 mpg (compared to 2-3% for current (compared to 2-3% for current based on EPA fuel efficiency model) model). The hybrid version will test. be sold at USD3700. •Recommended price is •Price can be increased to raise USD2800 the contribution margin. •Target profit margin is 10% Higher margins would make (compared to 2-3% for current mass-customization viable. model)Place/ - Use dealers for distribution, competitive distributor margin is givenDistributio - Selective strategy in the short term, start with smaller citiesn - Increase the Intensity gradually to reach throughout the country - Set up show rooms and service centers at major cities - Customers can also book their cars through internet website and select the required features.
    • OASIS Oasis (in USD 000s) 2010 2011 2012No of Units Sold 80 120 180Profit Margin Per unit 0.4 0.45 0.4Revenue 208000 312000 468000COGS 176000 264000 396000Gross Profit 32000 54000 72000Marketing ExpensesTV, Media 5200 7800 11700Internet 6240 9360 14040PR 5200 7800 11700Road Shows Etc. 4160 6240 9360TOTAL Marketing Exp 20800 31200 46800Other Expenses 8320 12480 18720Net Profit 2880 10320 6480Cummulative Profit 13200 $19,680.00Break Even 73 97 164
    • NOSTRADAMUS Nostradamus (in USD 000s) 2010 2011 2012No of Units Sold 46 51 60Profit Margin Per unit 0.6 0.55 0.55Revenue 138000 153000 180000COGS 101200 112200 132000Gross Profit 27600 28050 33000Marketing ExpensesTV, Media 3450 3825 4500Internet 4140 4590 5400PR 3450 3825 4500Road Shows Etc. 2760 3060 3600TOTAL Marketing Exp 13800 15300 18000Other Expenses 5520 6120 7200Net Profit 8280 6630 7800Cummulative Profit 14910 $22,710.00Break Even 32 39 46
    • CURSE OF BLOSSOM Curse of Blossom (in USD 000s) 2010 2011 2012No of Units Sold 20 22 19Profit Margin Per unit 0.8 0.75 0.7Revenue 60000 66000 57000COGS 44000 48400 41800Gross Profit 16000 16500 13300Marketing ExpensesTV, Media 1500 1650 1425Internet 1800 1980 1710PR 1500 1650 1425Road Shows Etc. 1200 1320 1140TOTAL Marketing Exp 6000 6600 5700Other Expenses 2400 2640 2280Net Profit 7600 7260 5320Cummulative Profit 14860 $20,180.00Break Even 11 12 11
    • OASIS CONSUMER BELIEFS Low Price 52% Environment 15% Friendly Safe 33%
    • 5 NOSTARDAMUS 50% Market share3 7 1.5%of small 30 70 Car market % %1 1 Units sold EVA ( in $ ’0,000 ) 0 1 100 Relative market 35000 % % Units 5 share 3 7 1 1 Payback period(in 0 years) NOSTRADAMUS – Most likely Scenario
    • 5 CURSE OF BLOSSOM 50%3 7 30 70 Market share % % 2.5%of small Car market1 1 1 100 0 % % Units sold Brand Development Relative market 59000 Index share Units 53 71 1 Percent Good 0 Value NOSTRADAMUS – Most likely Scenario
    • THANK YOU !!