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New product Development
      TATA Nano




              Mahesh-A-Kapse
Development Process of TATA Nano

         Idea Generation
Idea Screening

Option to make a scooter with two extra
 wheels at the back for better stability.
A three wheeled car like a closed auto-
 rickshaw.
Concept testing and
         development

 People wanted a four wheeler which was
  cheap, dependable and strong enough to carry a load of
  1 ton.
 It must be meeting all the safety and regulatory
  requirement.
 Each engineer represented a different part of the car:
  engine and transmission, body, vehicle
  integration, safety and regulation, and industrial design
 over six feet can also fit into the car without any
  discomfort
Business Analysis

Cost
COST REDUCTION PARADIGM: Value
 Engineering Alternatives
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
TOTAL SALES ESTIMATION

Estimated demand would be twice the demand of
 Maruti Suzuki 800.
Initial projections were at about 500,000 cars
 per year.
Only 10% customers of 9 Million two wheeler
 market transit to 4-wheelers it shall amount to
 50% of the passenger car market share.
MARKETING

                          Physical
Product
                          Evidence




 Price                    Processes




 Place        Promotion    People
CHALLENGES FACED DURING THE
 DEVELOPMENT OF TATA NANO


                       Question
                       of Safety




                                             Mass
  Competitors
                                          Motorisation




                                   Used car
            Cases of
                                    market
              fire
                                    effect
Cost cutting features


No Radio, Power windows, anti lock brakes, air
 bags, remote locks or power steering.
Rear wheel drive.
Analogue speedometer, odometer and fuel gauge.
Single windscreen wiper.
Three lug nuts on the wheels instead of the usual four.
Radio or CD player is optional.
No airbags on any model.
624cc rear engine has only 2 cylinder
Comparison OF Tata NANO with motor bike and
             Maruti Suzuki 800

 Maruti 800      Tata Nano         bike Engine
  796 cc               623 cc         100 cc

 Price(OTR)
 Rs 225,000       Rs 120,000(88%)       Rs.45,000

 Down Payments
 Rs 10,000         Rs 10,000            Rs 5000

 EMI(60m)
 Rs 3583           Rs 1833(95%)         Rs 667

 Kmpl
  15kms                 20kms           50kms
Making of TATA Nano

The mission began back in 2003
Team led by 32-year-old star engineer Girish Wagh
 The suppliers
Germany's Bosch
GKN Driveline India
Engineers- team grew to comprise some 500
 engineers.
Changed the engine designs three times.
INNOVATIONS INCORPORATED IN TATA
              NANO



Strategic Innovations


Focused Innovation
SWOT analysis of TATA Nano

Strengths                                  Weaknesses
Price                         20 – 50% higher then the proposed rates
Small size                                     Technical problems
Ease in handling                               Nano catching fire
Good mileage efficiency                        Political problems
convenience to drive in metro traffic


Opportunities                                 Threats
convenience to drive in metro traffic.    Alternatives by competitors
younger generation                       Chevy Spark
Structural safety tests

Its first basic structural safety tests which will becomes
 Indian structural safety standard in 2012.




The aim of the tests was to show that with basic
 modifications the present car could meet the existing
 safety.
Thank you…

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Amm presentation

  • 1. New product Development TATA Nano Mahesh-A-Kapse
  • 2. Development Process of TATA Nano Idea Generation
  • 3. Idea Screening Option to make a scooter with two extra wheels at the back for better stability. A three wheeled car like a closed auto- rickshaw.
  • 4. Concept testing and development  People wanted a four wheeler which was cheap, dependable and strong enough to carry a load of 1 ton.  It must be meeting all the safety and regulatory requirement.  Each engineer represented a different part of the car: engine and transmission, body, vehicle integration, safety and regulation, and industrial design  over six feet can also fit into the car without any discomfort
  • 5. Business Analysis Cost COST REDUCTION PARADIGM: Value Engineering Alternatives 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
  • 6. TOTAL SALES ESTIMATION Estimated demand would be twice the demand of Maruti Suzuki 800. Initial projections were at about 500,000 cars per year. Only 10% customers of 9 Million two wheeler market transit to 4-wheelers it shall amount to 50% of the passenger car market share.
  • 7. MARKETING Physical Product Evidence Price Processes Place Promotion People
  • 8. CHALLENGES FACED DURING THE DEVELOPMENT OF TATA NANO Question of Safety Mass Competitors Motorisation Used car Cases of market fire effect
  • 9. Cost cutting features No Radio, Power windows, anti lock brakes, air bags, remote locks or power steering. Rear wheel drive. Analogue speedometer, odometer and fuel gauge. Single windscreen wiper. Three lug nuts on the wheels instead of the usual four. Radio or CD player is optional. No airbags on any model. 624cc rear engine has only 2 cylinder
  • 10. Comparison OF Tata NANO with motor bike and Maruti Suzuki 800  Maruti 800 Tata Nano bike Engine 796 cc 623 cc 100 cc  Price(OTR) Rs 225,000 Rs 120,000(88%) Rs.45,000  Down Payments Rs 10,000 Rs 10,000 Rs 5000  EMI(60m) Rs 3583 Rs 1833(95%) Rs 667  Kmpl 15kms 20kms 50kms
  • 11. Making of TATA Nano The mission began back in 2003 Team led by 32-year-old star engineer Girish Wagh The suppliers Germany's Bosch GKN Driveline India Engineers- team grew to comprise some 500 engineers. Changed the engine designs three times.
  • 12. INNOVATIONS INCORPORATED IN TATA NANO Strategic Innovations Focused Innovation
  • 13. SWOT analysis of TATA Nano Strengths Weaknesses Price 20 – 50% higher then the proposed rates Small size Technical problems Ease in handling Nano catching fire Good mileage efficiency Political problems convenience to drive in metro traffic Opportunities Threats convenience to drive in metro traffic. Alternatives by competitors younger generation Chevy Spark
  • 14. Structural safety tests Its first basic structural safety tests which will becomes Indian structural safety standard in 2012. The aim of the tests was to show that with basic modifications the present car could meet the existing safety.