Introduction• Tata Nano is an inexpensive, rear-engined, four- passenger city car built by the Indian company Tata Motors• This nickname is due to the Nanos price point, nearly 100,000• Less expensive after the road tax, service tax & the other registration fees.• Greatest strengths of Nano is its tiny price tag.
Pricing• It used plastic and adhesive instead of welding.• No AC, No power steering, No Air bags, No power window.• Used inexpensive polymers or biodegradable plastics instead of a full metal-body.• 624 cc 2 cylinder engine.
Price of different models• Tata Nano Base model Rs. 135000• Tata Nano CX Rs.164481• Tata Nano LX Rs.186498
Controversy of increased price• Price increased as increase in input cost. especially metal.• Increase in excise duty after union budget of 2010.
Planning & StrategyQuestionnaire Hypothesis after research• Discussion with Decision • Nano is safe for driving maker • Conversion of Nano to a• Interview with Expert Taxi; do not affect the• Secondary data Analysis brand image &• Quantitative Research consequently sales. with 10 people • Hike in sales do not affect sales • Prefer Nano instead of two wheeler • People can wait for 2 months
Could have also included• It should not have waiting period• Ratan Tata’s statement : Promise is a promise• Exchange offer• Safety measures can be enhanced because it is a prime concern while purchases• Customization
Consumer behaviourNeed Recognition 24% safety 8% Need 68% Esteem Classification of consumer need
Consumer behaviourInformation Search 12% 22% TV Reference Group Magzine 66% Preference of channel of information
Consumer behaviourEvaluation of alternative• After collecting the information, consumers arrive at some conclusion about the product• In this stage consumers are comparing different brands based on set parameters which he or she thinks required in the product• Since it is clear from the above data that majority of the people are buying the car driven by safety need
Consumer behaviourPurchase decision• In this stage consumer buy the most preferred brand• The decision of making the particular brand is made after consumer conviction over the alternative product• There are two factors which are making people to postpone the purchase of Tata Nano. – Lack of information – Diffusion Process
Consumer behaviour Post purchase evaluation • After purchasing the product consumer will experience some level of satisfaction and dissatisfactionSatisfaction: 22% Satisfied 78% Dissatisfied 20% Equally Safety: 8o% Average Safe safe
Consumer behaviourRole of impulse purchase in decision making process• An impulse purchase or impulse buy is an unplanned decision to buy a product or service, made just before a purchase• The research has shown that buying a Tata Nano falls under complex buying behaviour despite the low price• The research has also shown that people wait for 1 to 2 year before buying the product like Tata Nano
Consumer behaviourTarget Audience• Who will buy the Tata Nano? 88 12 First Car Second Car consumer preference of Tata Nano
Consumer behaviourStrength WeaknessCheapest NO MORDEN FACILITIES-Eco-Friendly ABS, PS, AC etcFuel Efficiency & Engine Not suitable hilly areasStylish Poor engine cooling & hence overheating Small tyres and fiber bodyOpportunities ThreatsCost Control Traffic CongestionParking Space Cost may increase in FutureLow Maintenance Bad impression due to late dateWorld Wide Appeal in marketCreated a Niche market Security not secure Competitors – HYUNDAI, BAJAJ, GM