Do More with Less: Navigating Customer Acquisition Challenges for Today's Ent...
Tata nano
1.
2. TATA NANO – The People’s Car
ATIN DHARA
MOUMITA CHOWDHURY
MRINAL KANTI GHOSH
PRITHVIRAJ DASGUPTA
SHIKHAR BHATNAGAR
3. Introduction
• Launched Tata Nano, World’s cheapest car in 2009 priced at 1 Lakh
• Realized Ratan Tata’s vision
• Created the ULC Segment
• Resounding Success
4. Overview of the Indian Passenger Vehicle
Segment
• India’s automotive industry fastest growing in India
• Passenger vehicle segment = Passenger cars + utility vehicles (UV)+ multi-purpose vehicles (MPV)
• Maruti Suzuki leader with 47 % and expected to grow at 14.5 % b/w 2009 to 2013
• UV and MPV expected to grow because of reductions in taxes
• People's preference shifting from sedans to small cars or utility vehicles
5. TATA GROUP
• Founded by Jamshetji Tata in 1968
• 98 companies operating in 7 sectors
• 27 public listed companies with market capitalization of $60 billion
• Largest Conglomerate in India
6. History of Tata Motors
• Established in 1945 as Tata Engineering and Locomotive Company
• Initial collaboration with Daimler Benz
• Zen’s size, Ambassador’s internal dimensions, price of Maruti Suzuki, running cost of diesel
= Tata Indica
• In 2003 , changed its name to Tata Motors
• Provide innovative products and services to the common man so that even they can afford
them
• Leader in commercial vehicles and among the top three in passenger vehicles with products
in compact, midsize car and utility vehicles
8. • CAGR (Global Forecast) – Ultra low segment – 500% increase by 2020
• Number of People – 439 Million (Can invest $2500 - $5000) by 2020
• Mini-car $7801-$12000 – 2.5 to 3.7 million
• Regular low cost car $5001-$7800 – 2.4 to 4.5 million
• Ultra-low-cost car $2500-$5000 – 2.3 to 3 million
9. Analysis on Nano booking
• 2009 – Received 206,000 order
• January – 2010 – 20,000 nano delivered
• 50% booking LX
• 30% booking CX
• 20% booking base model
• 75% booking outside big five cities
• 30 % from existing 2 wheeler owner
• 50 % buying there second car
10. PESTEL Analysis
• Framework - analyze and monitor - macro-environmental factors that have
an impact on an organization.
11. Political
• Tax reductions applied to the specific vehicle segments
• The growth of exports - Asia and Africa
• FDI rules
• Labor regulations
• Tax Incentives
12. Economical
• Cheapest car $5495 - 2 wheeler cost roughly $880-$1100 – 1 Lakh
• Cost Reduction on Power Train, Rolling chassis.
• Seating Arrangement.
• Manufacturing plant
• Relocation cost
13. Socio-Culture
• First car
• Traffic Conditions
• Marketing decision
• Emotional decision
• Aspirational
• National Pride
• Reception
14. Technological
• Strong R&D
• 10-inch wheel
• Every components were redesigned
• Rear-engine rear-wheel drive
• 624 cc with 2 cylinder
• Steering
• Manufacturing team
16. Legal
• Singur Legal case :
1. Total Land acquisition -997 acre.
2. In 2007 Tata motors get possession of land and start construction, five guards
injured in clash with protestors
3. In 2008 Kolkata high courts rules in favor of state government in dispute over
land.
4. 2nd sept Tata motors announces the suspension of work and reallocate to sanand
5. Tata Nano announces exit by 3 October 2008
17. Promotion
• $220 million worth of PR
• Online Buzz : Nano has gone beyond the traditional methods of advertising
and promotion online.
• Social Media Communities
• Blog on official website
20. Future Market
• Pick and Drop – Hotels or Cab services
• Parents – Encourage to provide there children Nano in place of 2-wheeler
• Project Nano – For environment
• Deal with Builders – Like Sahara, DLF