Tata nano-vs-maruti-800


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Tata nano-vs-maruti-800

  1. 1. http://www.gameswala.com/ Project Report On New Product Development With Tata Nano And Comparitive Study On Maruti 800 Submitted To Submitted ByMr. Rajiv Bhandari Priyank Mehrotra BBA VI Sam. R No. 915605 http://www.gameswala.com/ 1
  2. 2. http://www.gameswala.com/ PREFACE This is the specialization project on astudy on new product development for Tata Nano alongwith a comparative study between Tata Nano andMaruti 800. The objective of this study is to gainknowledge about how Tata brought this new producti.e., Nano up to the development stage and finally goingto launch it on 23rd of March. During the project I researched on howTata developed Nano costing Rs 1 lakh and what will beits effects. This study also includes comparison betweenTata Nano and Maruti 800. A survey was also done forunderstanding consumer buying pattern andpreferences. Thus, this study is based on newproduct development in marketing for Tata Nano. http://www.gameswala.com/ 2
  3. 3. http://www.gameswala.com/ ACKNOWLEDGEMENT I am thankful to INVERTIS INSTIUTE OFMANAGEMENT who provided me with the opportunityfor carrying out the study. Under their valuable guidance, constantinterest and encouragement, who have devoted herever-precious time from their busy schedule and helpedme in completing the project. Her co-operation was notonly useful for this project but will be a constant sourceof inspiration for me in the future. I express gratitude to various facultymembers especially Rajeev Sir for his valuable guidancewhich was a good learning experience in order to makemy efforts successful. Special, continual assistance whilecollecting the data was provided by the respondents. Iwish to acknowledge my special thanks to them fortheir help and cooperation in order to complete thisproject. http://www.gameswala.com/ 3
  4. 4. http://www.gameswala.com/ I am also thankful to those who havehelped me intellectually in preparation of this projectdirectly or indirectly. I am deeply indebted to the varioussources of information from relevant sites from internetand books and newspapers which helped me a lot in mystudy and helped me to learn a lot. http://www.gameswala.com/ 4
  5. 5. http://www.gameswala.com/ Table of contents:Sr.No. Subject Pg. No 1 Objective of research 6 2 Methodology of research 7 Introduction to the subject –new product 3 development 8 4 Introduction to Tata Nano 20 5 Tata Nano and new product development 26 6 Some myths about Nano 45 Comparison between Nano and Maruti 7 800 50 8 Data collection method 57 9 Analysis of data collection 60 10 Various charts 62 11 Some feedback about Nano 68 12 Conclusion 71 http://www.gameswala.com/ 5
  6. 6. http://www.gameswala.com/ Research objectiveso To study about how a new product- Tata Nano was developed based on marketing theory of ―new product development.‖o To study about what made possible for Tata to develop and produce a car for just Rs. One lakh.o To study the objectives and target customers of Tata’s one lakh caro To study and compare between Tata Nano and Maruti 800o To study on customers buying behavior and preferences and views about Tata Nano and Maruti 800 by various methods of data collection. http://www.gameswala.com/ 6
  7. 7. http://www.gameswala.com/ RESEARCH METHODOLOGYThis chapter describes the methodology of the study. This project isbased on information collected from primary sources. After the detailedstudy, an attempt has been made to present “A STUDY OF NEWPRODUCT DEVLOPMENT WITH TATA NANO ANDCOMPRATATIVE STUDY ON MARUTI 800”. The data had beenused to cover various aspects like consumer’s preference and customer’ssatisfaction regarding “TATA NANO AND MARUTI 800”. Incollecting requisite data and information regarding the topic selected, Iwent to the residents of BAREILLY and collected the data.Survey design:The study is a cross sectional study because the data were collected at asingle point of time. For the purpose of present study a related sample ofpopulation was selected on the basis of convenience.Sample Size and Design:A sample of 100 people was taken on the basis of convenience. Theactual consumers were contacted on the basis of random sampling.Research Instrument:This work is carried out through self-administered questionnaires. Thequestions included were open ended, dichotomous and offered multiplechoices. http://www.gameswala.com/ 7
  8. 8. http://www.gameswala.com/Introduction To New Product Development Meaning Of Product: E.g.:- milk, computer, shoes, service aftersales, railway services etc. a product can be divided intotwo categories o Tangible goods o Intangible goods Tangible products are known as goods thatcan be touched, felt and seen. E.g.:- computer, mobilephone etc Intangible products are known as servicesthat cannot be touched and seen as the customer can feeland experience only after utilizing it. E.g.:- service aftersales http://www.gameswala.com/ 8
  9. 9. http://www.gameswala.com/ New Product Development: A product can be considered new under thefollowing situations:-  New-to-the-world products  New product lines  Additions to existing product lines  Improvements and revisions of existing products  Repositioning  Cost reductions http://www.gameswala.com/ 9
  10. 10. http://www.gameswala.com/ Stages Of New Product Development Before the introduction of a product intothe market, it goes through several stages of development.These stages are known as stages of new productdevelopment. It includes the following:Idea Generation: Companies seek new ideas to enhance theperformance of the existing products and to innovate newideas. This stage is called idea generation stage. There aremany sources for idea generation. It may be fromcustomers, dealers etc. Employees throughout the company canalso be a source of idea. Toyota claims that its employeessubmit two million ideas annually over 85% of which areimplemented. http://www.gameswala.com/ 10
  11. 11. http://www.gameswala.com/ Companies also find good ideas byresearching competitor’s products and services. They canfind out what the customers like or dislike about theircompetitor’s products. Ideas can also come from investors.External research, surveys industrial publications researchand development etc. But the main source of idea generation isthe customers by their grievances and complains andfeedback. However, although ideas can flow from manysources, it is not feasible to implement all the ideasgenerated due to lack of time and capital.Idea Screening The main purpose of idea generation is tocollect a larger number of ideas. However, not all ideas canbe commercially viable. Therefore, the companies filter theless viable ideas with the help of systematic process.Companies can use various parameters to screen the ideassuch as market size, technical capabilities, potentialcompetition etc. http://www.gameswala.com/ 11
  12. 12. http://www.gameswala.com/ Addressing the following issues will alsohelp the companies to analysis the attractiveness of ideas.  Whether the product idea match the existing products of the company.  The degree to which the new product can cannibalize the sale of the existing product.  Company’s ability to produce and market the product.  Buying behavior and the probable changes in the environment. While screening the ideas, anorganization may commit two types or errors.Drop error where the firm rejects a very good idea.Cro error where a company selects a poor idea. http://www.gameswala.com/ 12
  13. 13. http://www.gameswala.com/Concept Testing And Development: All ideas that survive in the process ofscreening will be studied in details. They will be developedinto mature products. At this stage, the idea is submittedfor the external evaluation to get a feedback from themarket. It helps a firm are organization to collect importantinformation like customers initial reactions towards theproduct development. During this stage, new product ideais described in the form of one or more benefit that is thenpresented to a sample of potential customers for theirreactions.Marketing Strategy: Following a successful concept test, the newproduct manager will develop a preliminary strategy plan http://www.gameswala.com/ 13
  14. 14. http://www.gameswala.com/for introducing new product in the market. The planconsists of three parts.  The first part describes the target market size, structure and behavior for the first few years.  The second part outlines the planned price distribution strategy and marketing budget for the 1st year.  The third part of marketing strategy plan describes the long run sales and profit goals and the marketing mix strategy over time.Business Analyses. After management develops the productconcept and market strategy, it can evaluate the businessattractiveness. Business analyses are the first in-depthfinancial evaluation of new product to be developed. Heremanagement needs to prepare sales cost and profitprojections to determine whether they satisfy companyobjectives. If they do, then concept can move to thedevelopment stage. SOWT analysis will be conducted at http://www.gameswala.com/ 14
  15. 15. http://www.gameswala.com/this stage by the organization. It also includes thefollowing:Total sales estimation:- These are the sum of estimated first- timesales, replacement sales and repeat sales. Its methoddepends upon whether the product is one timepurchase(an engagement ring), an infrequently purchasedproducts like toaster, auto mobile etc. or a frequentlypurchased products like consumer and industrial nondurables.Estimation costs and profits. The R&D, manufacturing, marketing andfinancial departments estimates the costs. The profitabilityof the new product is estimated through various financialtools. The simplest technique is the breakeven analysis inwhich the management estimates how many units of theproduct the company would have to sell to break even withthe given price and cost structure. If the management http://www.gameswala.com/ 15
  16. 16. http://www.gameswala.com/believes that sales could easily reach the break evennumber, it is likely to move the project into developmentstage.Product Development In this stage, detailed technical analysisis conducted to know whether the product produced atcosts is low enough to make the final price attractive to thecustomer. Here a working model or a prototype isdeveloped to disclose all tangible and intangible attributesof the product. A product protocol is prepared which is adetailed downiest containing the important attributes thatare expected in the product. Once the protocol has beendeveloped, it is handed over to the research thedevelopment department to develop the prototype of theproduct. http://www.gameswala.com/ 16
  17. 17. http://www.gameswala.com/ Test Marketing: The test marketing is the stage where theproduct is introduced in a few selected cities. During thisstage, the company has to fate the following expense:  High advertisement  High manufacturing cost.  High distribution cost etc. For testing the product, marketer needsto make the decision on the following issues.  The no. of cities in which the product is to be tested.  Geographic location of the cities.  Time to carry ort test marketing http://www.gameswala.com/ 17
  18. 18. http://www.gameswala.com/ Through this exercise, company canknow the customers response, feedback, suggestions,complaints and any other changes required to be done forproduct modification. After successfully laughing the productin selected cities the company launches the new product inall other cities. There are certain methods of product testing.Alpha Testing In this method, a group of target audience isselected from the employees of the company.Beta Testing: It is carried out at the customer’s site.Generally, it is applicable for industrial products where thecustomization takes place.Gamma Testing: http://www.gameswala.com/ 18
  19. 19. http://www.gameswala.com/ It is carried out on a long term basis wherethe customers uses the product extensively and givesresponse after a long period of time. Say six months. Commercialization: The results of the test marketing helpmarketers to decide the changes that are needed in themarketing mix before entering into the market. It also helpsthe marketer to decide the amount of productiondistribution strategy, selling efforts and other issue likeproviding guarantees, service after sales etc. the productenters the market during the commercialization stage. http://www.gameswala.com/ 19
  20. 20. http://www.gameswala.com/ Introduction To Tata Motors:o Tata Motors was established in 1945, when the company began making trains.o It has its manufacturing base in Jamshedpur, Lucknow, Pune and soon one more plant established at Singur, West Bengal.o Product Manufactured - Passenger Cars and commercial vehicle http://www.gameswala.com/ 20
  21. 21. http://www.gameswala.com/ o Installed Capacity - 350,000-400,000 vehicles a year o Investment - Rs 2,500 crore (Rs 25 billion) o Turnover - $21.9 billion (Rs 967,229 million) o Employees - 2,46,000/22001 o Tata Motors had created the wealth Rs. 320 billion during 2001-2006 and stood among top 10 wealth creators in India. Tata Nano - ONE LAKH CAR PROJECT “People’s Car” ―A promise is a promise,‖ said Rattan Tata,Chairman, Tata Motors, on 10th January, 2008, whenthe Nano was first displayed at the Auto Show in Delhi.The Nano project didn’t grab the attention of only http://www.gameswala.com/ 21
  22. 22. http://www.gameswala.com/Indians; the entire world had their eyes glued to theworld’s cheapest car. A truly People’s Car, this time is from India.Though the dealer price is Rs. 1 lakh, the price on road,when it will be launched, will reach around Rs. 1,25,00but it will be still more affordable and will be more eco-friendly than most other cars giving a mileage of around23km/liters. The price of the car is such that a lot of richand HNIs, if interested, can buy the car just by a singleswipe of their credit cards. Providing a car worth rupees one lakh carwas the dream of the chairman of Tata motors Mr. RattanTata. And with high qualified IT skills people he hasshown the Indian talents to whole the world.  Idea conceived by - Rattan Tata  Cost of development - 1700 crores  Manufacturing cost (excluding dealer margin and taxes)- Rs 65,000 per unit  Development of Design - India  Time for designing the car - 4 years http://www.gameswala.com/ 22
  23. 23. http://www.gameswala.com/ Team - A team of 150 engineers , everyone below age 28 Biggest hurdle - To make a car cheap car without Compromising design May western countries as well as many foreigncountries have accepted Indian IT skills. Details Of Nano Specs:Engine: 624 cc / 33 bhp4 door, 5 seater (and yes 4 Wheeled too)Rear Engine http://www.gameswala.com/ 23
  24. 24. http://www.gameswala.com/Weight: 600 kgsMileage - 22-23 km/liter Variants:StandardDeluxe (with AC) Future:Diesel VariantExports outside India or assembly plants outside Comparison8% less in length (bumper to bumper) with respect toMaruti 800 21% more in inner space with respect toMaruti 800 Looks:Front side looks more like Matiz (or Spark as we nowcall it)Back side looks more like India with those longtail lights. Insight:People often criticize something that is making waveseverywhere. This has also been the case with TataNano. Competitors, safety regulators,environmentalists and most others conceived theproblems that India will face, when such a car is http://www.gameswala.com/ 24
  25. 25. http://www.gameswala.com/ available, much before the actual launch of the car.This will result into:OLD GENERATION NEW GENERATION SOWT Analysis STRENGTH  Fuel efficient Brand name TATA  Safe Cost price low  OPPORTUNITIES http://www.gameswala.com/ 25
  26. 26. http://www.gameswala.com/ Large market for selling  First car in low range Awareness in the  Can hit in global market market WEAKNESS Low power Not a status symbol Delay in manufacturing Limited features THREATS Company rival Not sure to hit in rural and semi-urban areas http://www.gameswala.com/ 26
  27. 27. http://www.gameswala.com/ New Product Development And Nano As seen before, A product can be considerednew under the following situations:-  New-to-the-world products  New product lines  Additions to existing product lines  Improvements and revisions of existing products  Repositioning  Cost reductions As far as Nano is concerned, it falls into newto the world products in the context that it has made ahistory for the cheapest car ever made withoutcompromising on quality. I.e. best way value analysis. It can also be considered as new product inthe since of cost reduction as it’s the first time in thehistory that such a cheap car is produced. The story of the Nano is not confined to itsimpact on the auto industry. Its a tale that illuminates the http://www.gameswala.com/ 27
  28. 28. http://www.gameswala.com/India of today—an eager, ambitious nation with acombination of engineering talent, a desire for low costsand value, and the hunger of young managers looking tobreak from a hidebound corporate environment. Indeed,the team that worked on the Nano—on average agedbetween 25 and 30—has helped to flatten Tata Motorsstodgy, multilayered management structure, which hasresulted in an unexpected side-benefit called"organizational innovation". http://www.gameswala.com/ 28
  29. 29. http://www.gameswala.com/ Idea Generation And Nano A dream is born – Says, ―I observed families riding on two-wheelers -- the father driving the scooter, his young kidstanding in front of him, his wife seated behind himholding a little baby. Add to that the slippery roads & Nighttime 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.‖ So when Tata Motors needed someone to takecharge of the companys most ambitious plan yet to buildthe worlds cheapest car ever Ravi Kant, who by then hadbecome the companys managing director, again turned toWagh. Wagh remembers what he learned marketing thelittle truck. "People want to move from two-wheelers tofour-wheelers," he says. "Today they cant afford it." http://www.gameswala.com/ 29
  30. 30. http://www.gameswala.com/ More and more can, but Indian car buyerstoday represent a tiny slice of a potentially giant marketIndia has just seven cars per 1,000 people. Indias autoindustry has grown an average of 12% for the past decade,but just 1.3 million passenger vehicles were sold in India inthe fiscal year ending March 2006. That means a billionIndians buy about the same number of cars in a year as300 million Americans buy in a month. If four wheels cost as little as two wheels,that could change fast. About 7 million scooters andmotorcycles were sold in India last year, typically for pricesbetween 30,000 rupees and 70,000 rupees, about $675 to$1,600. Tata is targeting a price of 100,000 rupees onelakh, in Indian terms of measurement or about $2,500 atcurrent exchange rates, for its small car. That soundsimpossibly cheap in the West but remains three timeshigher than Indias annual per capita income. The averagepay for factory workers at Tata Motors is just $5,500 ayear. http://www.gameswala.com/ 30
  31. 31. http://www.gameswala.com/ Idea screening The next step was the screening of idea. Howis 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’scar it should be a car and not something that people wouldsay,― Ah! That’s just a scooter with four wheels or an auto-rickshaw with four wheels & not really a Car.‖ http://www.gameswala.com/ 31
  32. 32. http://www.gameswala.com/ Trying to build a car cheap enough formotorcycle buyers seems to make sense now but seemedcrazy several years ago when Rattan Tata, longtimechairman of Tata Motors and scion of the nations giantTata Group conglomerate, first mentioned his dream ofbuilding a one-lakh car in 2003. "They are still saying itcant 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 newdefinition of low-cost." http://www.gameswala.com/ 32
  33. 33. http://www.gameswala.com/ Concept Testing And Developing Before starting the project, Wagh didsomething no one at Tata Motors ever had: He talked tocustomers. The three-wheeler men inevitably insisted on acheap, dependable truck that could go from village tomarket carrying, say, a ton of onions or potatoes, onenight, as sunset approached, Wagh stuck with onerickshaw driver. He says, "I kept asking the question. Why?Why? Why do you want a four-wheeler?" Waghremembered. Finally, he got the real answer. It turned outit wasnt really a problem of transportation of vegetables ―IfI had a four-wheeler, I would have better marriageprospects in my village," the young man said. Drivers ofthree-wheelers are looked down upon in India. Waghrealized that four wheels had emotional, not just practical,appeal. http://www.gameswala.com/ 33
  34. 34. http://www.gameswala.com/Thus the new product was now to be developed.But what type of product?The car to cost Rs. 1 lakh on road.  The car should be built on a different platform than conventional ones.  It must be meeting all the safety and regulatory requirements.  It has to be built on a scale which shall be more than double the earlier launches of 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. http://www.gameswala.com/ 34
  35. 35. http://www.gameswala.com/ That quest to build the worlds cheapest carhasnt ended. The Nano should be available this fall, butthe mission began back in 2003, when Rattan Tata,chairman of Tata Motors and the $50 billion Tataconglomerate, set a challenge to build a "peoples car". Tatagave an engineering team, led by 32-year-old star engineerGarish Wagh, three requirements for the new vehicle: Itshould be low-cost, adhere to regulatory requirements, andachieve performance targets such as fuel efficiency andacceleration capacity. The design team initially came up with avehicle which had bars instead of doors and plastic flaps tokeep out the monsoon rains. It was closer to a quadricyclethan a car, and the first prototype, even a bigger engine,which boosted the power by nearly 20 per cent, was stilldismal. "It was an embarrassment," says Wagh. http://www.gameswala.com/ 35
  36. 36. http://www.gameswala.com/ But failure didn’t stop themthey quickly realized it was necessary to bring everyone onboard, "else it leads to last-minute heartache and delays".Every morning, he would spend an hour or two on the floorof the Pune factory, insisting that everyone involved—designers, manufacturing teams, and vendor developmentpeople—be there to accelerate decision-making andproblem-solving. Over time, Waghs team grew to comprisesome 500 engineers, an impractically large group to gatheron a daily basis. So instead, a core team of five engineersgathered every day at three pm to discuss the latestdevelopments. Each engineer represented a different part ofthe car: engine and transmission, body, vehicle integration,safety and regulation, and industrial design. The body had to be changed because RattanTata, over six feet tall himself, wanted it to be easy for tallpeople to get in and out of the car. "Imagine the plight ofthe body designer—he went through hundreds ofiterations, then at the last minute the car length wasincreased by 100 millimeters!" Wagh says. The attention todetail paid off: When the car rolled onto the dais at the http://www.gameswala.com/ 36
  37. 37. http://www.gameswala.com/Auto Show in New Delhi in January, and Rattan Tatastepped out of the drivers seat with ease, it made animmediate impact. What shook the automobile world most wasthe fact that the designers seem to have done theimpossible: The sleek, sophisticated Nano doesnt lookflimsy or inexpensive. If it had been an upgraded scooter onfour wheels, Tata still would have been applauded formaking a family of four safer on Indian roads. The Nano,however, affords both safety and status. "The innovationwasnt in technology; it was in a mindset change". http://www.gameswala.com/ 37
  38. 38. http://www.gameswala.com/ Business AnalysisCost Since the car had to be built within a cost ofRs. 1 Lac, no conventional design would work as the costsshall be higher and so the entire car has to be redesigned. What makes Nano so less expensive can bewell understood from the following diagram http://www.gameswala.com/ 38
  39. 39. http://www.gameswala.com/ The design has to question the need of eachand every component from the point of view of its necessityof existence and also the minimum requirements of itsfunctionality. Value Engineering concepts have to bedeployed to finalize the minimum requirements. Disruptive Technology: Is a Technology that brings radical change byintroducing new ways of doing things usually at aTechnology that is: http://www.gameswala.com/ 39
  40. 40. http://www.gameswala.com/  Significantly cheaper than existing Technology.  Is much higher performing?  Has greater functionality and  Is more convenient to Use.  Brings to market a totally different Value proposition than the one available and can change the Paradigm about a product. The Guiding factor was that the cost has tobe minimized for each component yet maintaining its basicfunctionality. The Alternatives are:  Reduce Consumption of Material being used.  Alternate Suppliers to get same material at fewer prices.  Use alternate materials.  Eliminate use of Material. http://www.gameswala.com/ 40
  41. 41. http://www.gameswala.com/  Eliminate a process Or a Combination of the above. The design was outsourced to Italys Instituteof Development in Automotive Engineering, but Tatahimself ordered changes along the way. Most recently hevetoed the design of the windshield wipers. His solution: asingle wiper instead of two, giving the car a cleaner look.THE COST REDUCTION PARADIGM Value EngineeringAlternatives: The target was very clearly defined thatwithin the given cost structure of 1 Lac all the componentshave to be allocated a maximum price and the same had tobe achieved using the available alternatives. The Guiding factor was that the taxstructure, on materials and manufacturing, must supportthe final cost of Rs. 1 Lac The Decisions were: http://www.gameswala.com/ 41
  42. 42. http://www.gameswala.com/  Establish factory in a tax free zone.  Get the tax advantages on infrastructure development.  Get the suppliers to establish base near the factory.  Get special concessions from State Govt.  In short select a manufacturing location where all the advantages could be achieved. In short select a manufacturing locationwhere all the advantages could be achieved.Total sales estimation Now the question was, ―how much toproduce‖  It was estimated that the demand for the people’s car shall be at least twice the demand for Maruti 800, the lowest end http://www.gameswala.com/ 42
  43. 43. http://www.gameswala.com/ car. Initial projections were at about 500 K cars per year.  The basic reason was the conviction that the target price shall redefine the 4 - wheeler segment.  The price decision of Rs 1 lakh is definitely going to make a lot many people transit to 4-wheeler fold and that shall explode the demand.  F only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share.  It was decided to set up plants with 5 lacs cars per annum capacity and ramp the same up in stages, in line with increase in market demand. The initial response to the Nano has beenoverwhelming and the tiny, Noddy-land car is expected tohelp the company cross several milestones. With revenuesat Rs 1,29,994 crore for the financial year 2006-7, and http://www.gameswala.com/ 43
  44. 44. http://www.gameswala.com/group companies enjoying a market capitalization of Rs2,51,487 crore as on January 10, 2008, the Tata Group ison a strong footing, contributing more than 3 per cent toIndias GDP. Nano, being the worlds cheapest car, hasmade international players sit up in amazement and thecompany has received proposals from some African, LatinAmerican and Southeast Asian countries to manufacturethe car there. Product Development And finally the product was developed with the following features.  Engine Capacity Bosch 624 c.c. twin cylinder  Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft. http://www.gameswala.com/ 44
  45. 45. http://www.gameswala.com/ 4 Speed Manual Gear Box All Aluminum Engine Higher thermal conductivity than cast iron, Lighter and so better mileage Engine Management System by Bosch Superb control over emission and smooth acceleration. Dimensions L: 3.1m, W: 1.5m, H: 1.6m Less length but more inner cabin space due to height. Comfortable leg room. Independent Front & Rear Suspension McPherson Strut in Front & Coil spring & trailing arm in rear. Better ride than Maruti 800. Single piece ribbed steel body with safety features such as crumple zones, intrusion resistant doors, seat belts, strong seats & anchorages. Safety requirements are adequately met. Single Wiper in place of two. Cost effective yet functionality is met Tube less Tires Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles Instrument console in the centre http://www.gameswala.com/ 45
  46. 46. http://www.gameswala.com/  Elegant to look at and can be used both in Left Hand & Right hand version.  The list goes on and on.  The Final verdictTHE CAR COSTS Rs 1 lacTest Marketing And Commercialization Nano is soon going to launch by the end of April. It willbe commercialized in whole of India. It is mostly targeted tothe middle class and lower middle class people. The effectsof Nano and its commercialization will be soon known afterit comes into the market. Some myths about Nano When Nano was introduced, itsurprised everyone. It had so many features but the costwas as low as Rs. 1 lakh. This was really amazing. Due tothis, many competitors, governments and others opposed http://www.gameswala.com/ 46
  47. 47. http://www.gameswala.com/Nano. Moreover, it’s not a new thing that whenever a newconcept is developed, people oppose. They find morelimitations then seeing the benefits. Following are somemyths about Nano. But these are then proved to be wrong.Myth no 1Nano is an unsafe car  The car has an all steel body.  It meets the mandatory Frontal Impact requirements.  It also meets the Side Impact requirements although they are not mandatory in India.Myth no 2Nano will greatly increase the Pollution Level http://www.gameswala.com/ 47
  48. 48. http://www.gameswala.com/  The car is Bharat IV and Euro IV compliant although these norms, which are stricter than the present Bharat III norms, are yet to be introduced.  It has lower carbon footprint, 20 mg / Km of Carbon Dioxide emission as compared to 45mg / Km, emitted by most of the two wheelers.  Its Multi Port Fuel Injection system is controlled by an intelligent Bosch Engine Management system which controls the combustion cycle precisely to ensure compliance to all emission norms.Myth no 3Nano will struggle to perform  Although the car has 33 bops as the maximum horsepower it has a low kerb weight of 550 Kg and so has a higher power-to – weight ratio when compared to many existing cars running on Indian roads.  The car has a matching acceleration to Maruti 800 and also a good top speed. Although the manufacturers have estimated 90 Kms as the maximum speed the car can go up to 105 Kms per hour top speed.Myth no 4Nano has very little leg room http://www.gameswala.com/ 48
  49. 49. http://www.gameswala.com/  Although the car is 8% smaller than Maruti 800 it has lot of extra leg room at front as there is no engine compartment. This also leaves sufficient knee room at the rear.  The car has a tall boy type design so there is lot of head space and also enough Shoulder room.  The mono volume design and the wheels having been put at the corners have freed up lot of in- cabin space and although the car may be registered as a four- setter, three slim adults can sit comfortably at the rear.Myth no 5Cheap means Uncomfortable  More comfortable than some of the cars selling at even twice the price. Leaves sufficient knee room at the rear.  Easy to get in & out of the car because of perfect seat height from the ground.  Suspension systems are good and the trailing arms with coil springs are not found in cheap cars. Rear. Myth no 6 http://www.gameswala.com/ 49
  50. 50. http://www.gameswala.com/It’s very difficult for a rear - engine car to work.  Rear engines work in many cheap as well as expensive cars.  Auto-rickshaws at one end and Formula One cars on the other extreme all use rear engines.  Maruti Omni too has a rear engine, under the seat and no one has been burnt due to that.  Cooling is easier in Nano as compared to some vans and there are the air ducts on either side behind the edge of the doors, which allow air to seep in for both cooling & for intake.Myth no 7There is a shortage of storage space.  There is some storage space although not much.  The rear seat with parcel shelf folds to allow accommodating a large suitcase.  Small articles can be placed under the bonnet also.Myth no 8 http://www.gameswala.com/ 50
  51. 51. http://www.gameswala.com/Cutting Corners is evident everywhere  Cost cutting is done by smart designing rather than taking out the essentials.  One wiper has been taken out but the functionality is intact. Wind shield washer fluid jets are mounted on the wiper itself rather than the body.  Wheels are held by three bolts instead of four.  On the contrary, MRF tubeless tyres and all Alumininium engine, have been used, which are more expensive than conventional ones. http://www.gameswala.com/ 51
  52. 52. http://www.gameswala.com/ TATA NANO V/S MARUTI 800 Competitor As we know the price of Nano car is muchaffordable for middle class people. This car can be easilyaffordable by middle class people. In the Indian market itwill face only by one competitor that is Maruti – 800, whichproduced by Maruti udyog. The real question arise who will have the lastlaugh Tata or Maruti 800? The answer is neither Tata nor Maruti 800but they are the buyers who will have the last laughCan Nano beat the popularity of Maruti 800. All the thingsdepend on their marketing strategy that how they willattract to Indian middle class customers. Never mind the fact that what was touted asa Rs.100,000 car will cost at least a fifth more and thatsfor the standard non-air conditioned version.Jagdish Khattar, a former head of Maruti 800manufacturer Maruti Udyog Ltd, says its too early to saywhether the Nano will overtake the original. http://www.gameswala.com/ 52
  53. 53. http://www.gameswala.com/ "Its a good product but its still too early tosay whether it will overtake the 800 because it caters to atotally new market segment," he said while watching a livetelecast of Tatas press conference after unveiling of theNano. But clearly, at least one other manufacturer wasworried. Whether or not the Nano will overtake theMaruti 800, one thing is for sure: the current Auto Expowill be remembered for Tatas peoples car and for thatproduct alone. It is the Nano that has captured the heartsand minds of a majority of the spectators. Price of Maruti in major city of India – 800 (a/c LPG) (Figures in rupees) Mumbai 245648 Delhi 228858 Bangalore 231407 Kolkata 236826 Lucknow 232542 http://www.gameswala.com/ 53
  54. 54. http://www.gameswala.com/ TATA NANO V/S MARUTI 800 FEATURES OF TATA NANO COMPRAED TO MARUTI 800 COST: The dealer price of Maruti 800 varies from city to city. The dealer price in Delhi is 1.97 laths and the road price is approximately 2.28 laky Indian rupees. The dealer price of Nano is just 1.00 lakhs rupees and the road price is only 1.26 lakhs rupees. So here we can put the equation 2 * Nano = 1* Maruti – 800 http://www.gameswala.com/ 54
  55. 55. http://www.gameswala.com/ ENGINE: Maruti 800: – 800 cc Tata Nano :623 cc (better fuel than Maruti 800) ENGINE TYPE: Maruti 800 – petrol/LPG Nano : petrol (diesel version will be later)SEATING CAPACITY: Maruti 800: 4+1 person Nano: 4+1 person FUEL TANK CAPACITY: Maruti800 : 28 Lt (petrol), 19.2 (LPG) Nano: 30 Lt. WEIGHT http://www.gameswala.com/ 55
  56. 56. http://www.gameswala.com/ Maruti 800 – more than 690 kg (gross weight is 1000 kg) Nano – more than 600 kg TOP SPEED: Maruti 800 : 120 km/hr Nano : 90 km /hr SEGMENT: Maruti 800 – middle class people Nano: lower and middle class people. FUEL CONSUMPTION: Maruti 800: city 13.6 and highway 17.6 km Nano: city 22 km and highway 26 km DIMENSIONS: Maruti 800 Tata Nano Length 3.335 meters 3.1 meters (131.3 inch Width 1.440 meters 1.5 meters (56.7 inch) Height (55.3 inches) 1.6 meters http://www.gameswala.com/ 56
  57. 57. http://www.gameswala.com/ BREAKS: Maruti800: Front Disk, Rear Drum Nano: Front Disk, Rear Drum COLOURS Maruti 800 Tata Nano: http://www.gameswala.com/ 57
  58. 58. http://www.gameswala.com/ The Nano are not much taller and broader as compared to Maruti – 800 but it has 21 percent larger spaces in side but 8 percent short than Maruti.Disadvantages of NANO vs. Maruti 800 http://www.gameswala.com/ 58
  59. 59. http://www.gameswala.com/1. LPG/CNG version is doubtful.2. Top Speed will be laser than 800.3. Space for Language is less.Data Collection Methods The success of any project or market surveydepends heavily on the data collection and analysis. It isnecessary that the data collected is a reliable data in orderto achieve the research objective. For research regarding the views of peopleabout Tata Nano and its comparison between Tata Nanoand Maruti 800 two types of data collection methods wereused Primary Data Secondary Data http://www.gameswala.com/ 59
  60. 60. http://www.gameswala.com/ PRIMARY DATA: Primary data is the data, which are fresh andcollected for the first time, and are original in character.There are various Primary Data Collection techniques,which have helped in data gathering. This was collectedthrough questioner. Questionnaires are a popular means ofcollecting data, but are difficult to design and often requiremany rewrites before an acceptable questionnaire isproduced.Advantages:  Can be posted, e-mailed or faxed.  Wide geographic coverage.  Relatively cheap. http://www.gameswala.com/ 60
  61. 61. http://www.gameswala.com/  No prior arrangements are needed.  Avoids embarrassment on the part of the respondent.  Respondent can consider responses.  No interviewer bias.Disadvantages:  Design problems.  Questions have to be relatively simple.  Time delay whilst waiting for responses to be returned.  Several reminders may be required.  Assumes no literacy problems.  No control over who completes it.  Not possible to give assistance if required.  Problems with incomplete questionnaires. http://www.gameswala.com/ 61
  62. 62. http://www.gameswala.com/Points kept in mind while preparing thequestioner  Liberal spacing  Length of the questioner is kept normal  Logical Order  Question are short, simple and to the point; all unnecessary words are avoided  Close ended questions are asked so that its easy for the respondent to fill the questioner and also easy to analysis  Sample population was selected on the basis of random sampling method. http://www.gameswala.com/ 62
  63. 63. http://www.gameswala.com/ SECONDARY DATA: Secondary data are those data, which havebeen already collected or published for the purpose otherthan specific research need at hand. This data is simplyused up by the researcher for his purpose of collected dataand it’s used for the same purpose. The secondary datasources here in this project are:Websites:www.tatamotors.com,www.marutisuzuki.com,www.autocarindia.com,www.autobid.in,www.overdrive.in,Books : http://www.gameswala.com/ 63
  64. 64. http://www.gameswala.com/Auto Bid Magazine, Overdrive Magazine, AutocarindiaMagazine Various Results Of Analysis In The Form Of Charts % of people who are aware of tata nano 3% yes no 97% http://www.gameswala.com/ 64
  65. 65. http://www.gameswala.com/ the % of people who are aware of the tata’snew product – Nano car is shown with the help of pie chart. o Here, blue color indicates that people are aware of tata Nano o And red color indicates the % of people who are not aware of tata Nano. While analyzing the chart, we can know thatonly 3% of the total sample population is not aware abouttata Nano. This shows the great effect of media, newspaperand launching of this product.Preferences Of Different Age Group RegardingBuying Of Nano. http://www.gameswala.com/ 65
  66. 66. http://www.gameswala.com/ 8 7 6 5 yes 4 3 no 2 not sure 1 not sure 0 no 15-30 yes 31-45 45-60 above 60 this chart shows the preference of differentage group to buy tata nano when it is launched. Here on x- axis, no of respondents is given.And on y – axis the age group is given. o Blue triangle indicates willingness to purchase tata Nano. o Red triangle indicates that the respondent is not willing to pruchase it o And green indicates that the respondent is not sure. While analysing this chart, we can see thatthe young generation is egar to buy the product. While due http://www.gameswala.com/ 66
  67. 67. http://www.gameswala.com/to some misunderstandings about tata nano, the oldergeneration doesn’t desire to buy it or are not sure about it.Preferences Of The Respondents RegardingBuying Of Maruti 800 And Tata Nano http://www.gameswala.com/ 67
  68. 68. http://www.gameswala.com/ Preferences for buying maruti 800 or tata nano maruti 800 tata nano this chart shows the preference of therespondent. The question asked in the questioner was, ―ifyou were to buy one of the following, which would youprefer.‖ the options given were: Maruti 800 tata Nano by having a glance at the chart, we can seethat majority went for tata Nano. Maruti 800 got very lessvotes. This shows a tough time for Maruti in future. Views about success of Nano http://www.gameswala.com/ 68
  69. 69. http://www.gameswala.com/ views on success of nano success 50% 50% not sure the question asked here was,‖do you thinkNano will be successful‖ the options given wereyes no not sure. It’s very interesting to note here that none ofthe respondent said that Nano won’t be successful. Asshown in the chart, the portion of purple color whichshows failure is not there at all. But again every body does not believe in itssuccess. As seen form the chart, 50% of the respondenthas a doubt about success of Nano. Nano- A People’s Car !!! http://www.gameswala.com/ 69
  70. 70. http://www.gameswala.com/ No of People, 30 No of People, 44 No of People, 14 No of People, 12 Cost Size Looks InnovationThe question asked here is, ―What is it that makes Nano apeople’s car?‖ By analyzing the chart, we can say thatpeople consider the cost factor the most for Nano followedby the innovation. Even looks has got quite positive reply.Nano is a product that is developed perfectly at minimumcost without sacrificing the quality. Some Feedbacks Based On Questioner: http://www.gameswala.com/ 70
  71. 71. http://www.gameswala.com/Positive Response  I have one more angle to look at Nano. I think it is worlds most hyped about gadget after the iPhone. Did I just say ―gadget‖. Well, yes Tata Nano is not just a car; one can also look at it like an expensive gadget which also gives us mobility. One of the very few cute looking gadgets that all us geeks will love, who would generally be interested in stuff that is sleek and powerful. I am also hopeful that Tata will launch FCV and alternative fuel cars soon.  I definitely would like to buy the car. Who would not want a good car for just 100000 Rs?  It’s just cool. One should definitely buy it.  Cheap As it is, but very smart and sexy. I would defiantly buy it.  Congratulations to Mr. Rattan Tata. He did a real good job. http://www.gameswala.com/ 71
  72. 72. http://www.gameswala.com/Negative Response  It is impossible to build a car at such a price. No one has been able to do it so far. It is just not possible.  It will be more like a scooter with a roof. I am sure no one can make the car for the cost of two bikes.  This car is another auto rickshaw. It will add a lot to the traffic on road.  It shall be a half car with no roof. I doubt if it will be able to go up the flyovers.  It may be an upgraded Auto-rickshaw with plastic body. It shall be a very unsafe car as the very idea of 1 Lac car is too farfetched to be true.  It shall never meet the emission norms. We shall choke on the poisonous emissions from this car. The disbelief kept piling up and up and was further compounded by the competitors adding their own mite to the speculations. http://www.gameswala.com/ 72
  73. 73. http://www.gameswala.com/Mixed Response  IT HAS NOT BEEN DONE EVER. Even the nearest car is double the cost. Let us see what Mr. Tata can do to maintain the price line.  I am not very convinced but would definitely go for it if it is safe.  I hope I can take my family of 4 in this car. I wish Tatas make this dream a reality.  I know the talk is that it is a myth. However miracles do happen. Let us wait and watch. The reaction was a mixed one. People wished it to be true but were very cautious about expressing their optimism. http://www.gameswala.com/ 73
  74. 74. http://www.gameswala.com/ Conclusion MY OPINION After the study of various aspects I found that –Nano Car Is Definitely Not For:-  Someone looking for better performance  Someone who is looking to impress  Someone who want to speed trial on Sunday  Someone who is looking for long drives.But Nano Car Is Defiantly For –  Someone who is looking to buy a car but cannot afford much price.  A students who want to go college, tuition instead of bike etc.  Someone who depends on second hand car.  For a house wife who can buy a car with her own savings.  Someone who depends on scooter. So Nano is not a basically a luxury cars but it can fulfilled the all capacity for middle class people. http://www.gameswala.com/ 74
  75. 75. http://www.gameswala.com/ Impact Of Tata Nano On Life Of Common Man In India every one can afford a Nano, just as we buy any electronic appliances for a home uses. Decrease in price of second hand car. High traffic on roads due to sale of exceeds car on roads. Increase in loan on car installments. And finally Nano is definitely better thanMaruti 800. tata has succeeded in value engineering ofthe product and its great success for tata’s. It’ssomething on which India can feel proud of. Nano hasbeen developed effectively. http://www.gameswala.com/ 75
  76. 76. http://www.gameswala.com/ QUESTIONNAIREQue1. Which brand of Car’s do you prefer? Maruti 800 40% Tata Nano 60% Tata Nano 60 Maruti 800 4060% peoples prefer Tata Nano while 40% prefer Maruti 800. http://www.gameswala.com/ 76
  77. 77. http://www.gameswala.com/Que2. Rank the brands of cars according to your preference? (1 for most preferred) 2.5 2 1.5 tata Nano 1 Maruti 800 0.5 0 Design Mileage Company Status Resale Value Tata Nano Maruti 800 Design 1 2 Mileage 1 2 Company Status 2 1 Resale Value 2 1 http://www.gameswala.com/ 77
  78. 78. http://www.gameswala.com/Que3. Which form of a Car do you like? 45% 55% tata (other cars) Maruti (other cars) Tata (Other Cars) 45% Maruti Suzuki (Other Cars) 55% 55% people like to buy Maruti brand and 45% like to buy Tata brand http://www.gameswala.com/ 78
  79. 79. http://www.gameswala.com/Que 4. Which promotional offers attract you most? 15% 40% Free Gifts Price Offers 45% Any Other Free gifts 40% Price Offer 45% Any other 15% 40% attracts for free gifts, 45% attracts for price offer and 15% attract on any other offer. http://www.gameswala.com/ 79
  80. 80. http://www.gameswala.com/Que5.Which of these factors affect your purchase? 30% Advertisment 45% Suggestion from friends & relatives Attractive offers 15% 10% brand Ambassadors  Advertisement  Suggestion from friends and relatives  Attractive Offers  Brand Ambassadors http://www.gameswala.com/ 80
  81. 81. http://www.gameswala.com/30% people buy cars while watching AD on T.V, 15% buying from suggestion of friends &family, 10% buy cars by checking attractive offers and 45% buying cars while checking theirbrand ambassador.Que 6. Which media of advertisement influence your purchase? 10% 5% 40% 15% Television newspaper brouchers hoarding 30% display Television 40% Newspapers 30% Brochures 15% Hoarding 5% Display 10%40% buying through TV adv., 30% buying through newspaper adv., 15% buying throughbrochers, 5% buying through hording boards and 10% buying through display ads. http://www.gameswala.com/ 81
  82. 82. http://www.gameswala.com/Que 7. How frequently do you purchase cars? 5% 5% 21% 27% once in a year once in a two years once in a 5 years once in a 10 years 42% once in a whole life Once in a Year Once in a Two Years Once In a Five Year Once in Ten Years Once in a hole Life http://www.gameswala.com/ 82
  83. 83. http://www.gameswala.com/Que8. What according to you is the reasonable price of Cars ? 5% 20% 10% Below 1 Lakh Once Lakh 35% 1-2 Lakhs 30% 2-3 Lakhs Above 3 Lakhs Below One Lakh 5% One Lakh 10% 1-2 Lakhs 35% 2-3 Lakhs 30% Above 3 Lakhs 20%5% prefer car prize below 1 Lakh, 10% prefer car prize Rs. 1 Lakh, 35% prefer car prizebetween 1-2 Lakhs, 30% prefer car prize between 2-3 Lakhs and 20% prefer car prize above 3lakhs. http://www.gameswala.com/ 83
  84. 84. http://www.gameswala.com/Que 9. If your preferred brand is not available for repeat purchase then what will you do? 30% 30% Postpone your purchase Switch over to other brand 40% go to the other showroom to search for your preffer brand Postpone your purchase 30% Switch over to other brand 40% Go to the other showroom to search for your preferred brand 30% http://www.gameswala.com/ 84
  85. 85. http://www.gameswala.com/30% people postpone their purchase while 40% switch over to another brand and 30% go toanother showroom for their prefer brand car.Que10. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand? 15% 20% No, not at all I may consider 35% No, I shall not 30% cant say No, not at all 20% I may consider 30% No, I shall not 35% can’t say 15% http://www.gameswala.com/ 85
  86. 86. http://www.gameswala.com/ 20% will not stop buying their brand while 30% while consider about this and 35% shallnot change their brand and 15% can’t say about this.Que11. If you don’t like to change to the new brand, then what are the reasons for continuing topurchase the old brand?PERSONAL DETAILSName:Address:Age: Between 15-30 Between31-45 Between 45-60 Above 60Gender: M/FPhone Number:Marital status:Education:Profession: http://www.gameswala.com/ 86
  87. 87. http://www.gameswala.com/ BIBLIOGRAPHYMagazines Auto-India Auto-CarWebsites http://www.wikipedia.com/ http://www.tatamotors.com/ http://www.maruti.com/ http://www.gameswala.com/ 87
  88. 88. http://www.gameswala.com/http://www.gameswala.com/ 88