Tata nano (1)


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Tata nano (1)

  1. 1. History of TATA Motors 96 Companies 650,000 Employees 6 Continents 6th Largest commercial Vehicle Manufacturer in the world.
  2. 2. 2004 1st Indian manufacturing company listed in NYSE Manufacturing plants in India : Jamshedpur, Pune, Lucknow Assembly Operations across globe Malaysia, Kenya, Bangladesh, Spain, Ukraine, Russi a and Senegal.
  3. 3. 2004 acquired Daewoo commercial Vehicle co. Ltd. o Korea’s 2nd largest Truck manufacturer 2005 acquired 21% stake in Hispano carroccera o Spanish bus manufacturer
  4. 4. Indian Automobile Market  Benefited after Liberalization  2005-2006 One among the largest and fastest growing car markets.  Best and Top manufacturers of two and four wheelers present in India  Rapidly expanding middle class increases scope of wide market
  5. 5. Unveiled Nano in 2008
  6. 6. Questions How would you segment the Indian automobile market? Where is Nano likely to have most appeals? Accordingly how should it be positioned?
  7. 7. Second hand vehicle users Auto Rickshaw Market Middle and lower income people Positioned itself in the mind of people as “The people’s Car”
  8. 8. Will Nano cannibalize Indica and Tata’s other popular model?
  9. 9. Tata Indica – India’s Car Launched in 1998 Price Approx Rs 3,00000 starting
  10. 10. Tata Indigo Economy car Launched in 2002 Price approx Rs 4,00,000
  11. 11. Tata Nano “People’s car” Launched in 2008 Price Approx Rs 1,30000
  12. 12. A news report on Nano  Tata Nano by Tata Motors will have only a marginal impact on the sale of Maruti-800, said Maruti Suzuki chairman RC Bhargava  Two-wheeler makers Hero Honda, Bajaj Auto and TVS Motors, too, underplayed the anticipated impact of Nano.  Mr Bhargava said, “Nano may impact the sale of our entry-level model Maruti 800.
  13. 13. How do you evaluate Nano from the perspective of Tata motors , perspective of customers, and society at large?
  14. 14. Company Perspective Tata Nano is a kit Car. Innovation both in case of value for money and comfortably It gives margin 4-10% to dealers. 20 – 25% for company. Production of 350000 cars
  15. 15. Customer Perspective Value for Money. Comfort travelling experience Low budget car
  16. 16. Society Perspective Considered the market as middle class families and college students. “Freedom for Four”
  17. 17. What are the economies of the nano for the channel members .viz component suppliers, manufacturers and dealers ?
  18. 18. Component Supplier 90% of the products are out sourced 75% were single sourced 100 sub contractors
  19. 19. Manufacturer Production of nearly 350000 Nano Increase in cost of material by 10% Margin around 20-25% overall Estimated profit of nearly 900 crore (approx)
  20. 20. Dealer Less outlets so scope of buying from particular dealer is more , increasing the sales Pre- booking Demand of Nano was more during the starting stage .
  21. 21.  Should Tata’s Sales and distribution strategy be changed for Nano? Is the planned distribution model of local assembly feasible?
  22. 22. TATA NANO is using Hub and Spoke Model for distribution TATA has many C&F Agents (Collects Nano from hubs and distribute it across nation) Sales & Distribution strategy
  23. 23. TATA NANO Distribution Model Hub and Spoke Model
  24. 24. While the Nano seemed tailor-made for rural drivers, Tata only has dealers in major cities. Lack of dealers in the target market i.e semi urban cities and rural areas. Present Issues with sales and Distribution Strategy
  25. 25. Tata has nearly 200 dealers in major cities.  Reputation was damaged when five of the first 30,000 cars had engine fires. The final nail in the coffin is the price: Rising material costs pushed the car’s price up to Rs. 1.5 lakh the same as a used Maruti 800
  26. 26. Target segment
  27. 27. • Setting up exclusive showrooms for NANO • Developing Specialized Logistics Facilities by collaboration with Specialized logistics providers • Should Move from full range dealership to Product Based Dealership • Financing better facilities like Tata Finance Reinvent the distribution strategy Recommendations
  28. 28. • Dedicated Nano kiosks and Mobile display units, the company also can step up its drive through the hinterlands to spruce sales. • Association with Retail Outlets like Vishal Mega Mart, Shoppers Shop, Pantloon etc. (Booking facilities, with promotion schemes like ‘Win Silver Coin’) Reinvent the distribution strategy Recommendations
  29. 29. Suppose Tata wishes to go international with Nano then which countries will be suitable to enter and when?
  30. 30. Internationally we would like to place Tata Nano in country like Bangladesh Assembly plant present in the country Cost will be low and scope is high. Not developed country scope of selling to middle class is High High demand for low budgetary cars.
  31. 31. One more country in the list will be Thailand More of two wheelers than four wheelers. Some places they heavily depend on Two wheelers even for tourism.
  32. 32. Adarsh surana, Rishab chandan, Magesh veeramani, Princy koratty Sabari nathan