<ul><li>India's record in road deaths has touched a new low, as toll rose to at least 14 deaths per hour in 2008 against 13 the previous year. While the toll was only 84,430 in 2003, it crossed 1.18 lakh in 2008,In fact, 4.69 lakh people were injured in road accidents in 2008, nearly four times the total death toll.While trucks/lorries and two-wheelers were responsible for over 40% deaths.</li></li></ul><li>DREAM OF RATAN TATA<br />NANO<br />
INTRODUCTION<br /><ul><li>The Tata Nano was introduced at the 9th auto expo by Tata Motors in New Delhi, India on Jan. 10, 2008.
Car delivery to customers started in July, 2009.
Tata Nano is made for medium class family, it is Small, affordable and Stylish Car.
The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating agency CRISIL.</li></li></ul><li>MARKET <br />POTENTIAL<br />
1. GEOGRAPHYICAL2. FAMILY SIZE3. DEMOGRAPHICAL4. INFRASTRUCTURE<br />
MARKET<br />India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.<br />
PRICING STRATEGY<br /><ul><li>Though the one lakh price tag was not fixed by TATA group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company. To accept this challenge the following strategies are followed:-</li></ul>Target costing method<br />Penetration pricing<br />Low pricing policy with minimum profit margin.<br />
Creating and sourcing new capabilities<br />Various companies reached out for making the world’s cheapest car:<br />Germany’s Bosch – new engine management system<br />Italy’s I.DE.A. – styling n interior deign<br />India’s Sona Koyo – light weight steering shaft<br />Japan’s Toyo – engine cooling module<br />Germany’s Behr – heating, ventilating & air – conditioning system.<br />India’s Madras rubber factory – tougher than normal rear tires<br />
SAFETY<br />Car exceeds current regulatory requirements with a strong passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.<br />
PROMOTIONS<br />* Enough use of one of the most important element of promotion mix , publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:-<br />* Publicity as “One lakh car” by word of mouth.<br />* Auto expo 2008,New Delhi & Geneva.<br />* Publicity through print & electronic media.<br />* Internet will be a major media for advertising.<br />
PROMOTIONS<br />Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online .<br />Social Media communities:-<br />Official Orkut community Members – 11,448 <br />Official Facebook Group Fans – 9,191<br />Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing this post) <br />No. of Blog Posts - 61,664 <br />TATA has a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community<br />
DISTRIBUTION<br /><ul><li>TATA, it’s business has been extended to the overseas i.e. to the Europe, Africa, U.S & Australia.
Hence it has large number of showrooms in India & outside of India.
The exclusive showrooms are the best distribution channels for TATA itself.</li></li></ul><li>SERVICE MIX<br />As Tata is going to provide this car with rupees one lakh only, so it may not give the same service like it’s other vehicles. <br /><ul><li>But it’s post purchase services will be better than a costlier bike.
Customers will get minimum three services from Tata in any of it’s servicing center, all over the country.</li></li></ul><li>OUR SELLING STRATEGY<br /><ul><li>Awareness campaign through advt. tools, projecting as VALUE ADDED PRODUCT (more mileage,safety,easy to buy, very convenient to drive).
Persuasive advertisement justifying switching over to 4 wheeler from 2 wheeler (considering safety at a low cost and non affordable medical expenses in case of an accident i.e. 2wheeler are more prone to accident).
FUTURE MARKET<br /><ul><li>Can be used in hotels as a pick n drop vehicle.
Parents can be encouraged to provide their children with nano instead of 2- wheelers, to ensure safety.
Project Nano as pollution free & environment friendly
Strike a deal with builders & colonisers like Eldico ,DLF , Sahara etc. to give Nano to each flat buyer because small cost of Nano can be easily absorbed in huge cost of property & thus making the flat purchase more attractive</li></li></ul><li>FUTURE MARKET- ‘nano taxi’<br />
REACTIONS ABOUT NANO<br />"It's a good historic moment for the Indian auto industry and also a proud one indeed that an Indian company took a step forward on this road. Its an up gradation for an auto wheeler rider to by a car now.“<br /> Rajesh Jejurikar, Managing Director, Mahindra and Renault's.<br />"It's good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment.”<br /> Said Jagdish Khattar, Former MD of Maruti Udyog Limited<br />
REACTIONS ABOUT NANO<br />"Meeting the proper quality standards and safety is not feasible at all in such a model.Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India.<br />"I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drives to great success with the Rs one lakh car, but it is not included in our plan.“<br />Thomas Kuehl, Board Member, Skoda Auto India.<br />