Tata Motors established the Tata Nano as the world's cheapest car through a collaborative approach. They broke down the car components and outsourced manufacturing to over 100 suppliers, such as Bosch, to reduce costs. This allowed suppliers to innovate and helped Tata Motors produce the Nano for under Rs. 100,000. However, Tata Motors struggled to meet sales targets of the Nano due to production delays from strikes and negative publicity from fires, limiting their ability to capitalize on the initial hype around the affordable "people's car."
WHY DID TATA NANO
Positioning, Branding, psychographic, Tata Nano.
SWOT Analysis
1. Strengths
2. What made the brand weak? Weaknesses
3. Threats in the SWOT analysis of Tata nano.
Factors & Failure
The Positioning Failure
Psychographic Factors
Conclusion
WHY DID TATA NANO
Positioning, Branding, psychographic, Tata Nano.
SWOT Analysis
1. Strengths
2. What made the brand weak? Weaknesses
3. Threats in the SWOT analysis of Tata nano.
Factors & Failure
The Positioning Failure
Psychographic Factors
Conclusion
This is a research paper that i have worked in Feb 2008.
I have taken a sample size of 300 people of diverse back ground. For detail look at it.
Please do drop your comments.
Hi All, We have analyzed the positioning of Tata Nano (Kellogg School of Management Case Study)... We have looked into the current sales trends as of 2015... We have proposed an unique positioning... Hope you will appreciate.
This slide cover how the nano concepts are emerged. All marketing strategies are covered in this slide. 1 lakh costing car and its feature are analysed in this slide.
Tata nano-mba-542 nano in bangladesh nana business Abdullah Al Masud
launched in 2008, Abdul Matlub Ahmad, the chairman of the Nitol Niloy Group, Tata Motors Ltd's manufacturing partner in Bangladesh, had ordered four of them from the first series.
Now, he's back with a business proposal, which might revive Nano's future prospects.
This is a research paper that i have worked in Feb 2008.
I have taken a sample size of 300 people of diverse back ground. For detail look at it.
Please do drop your comments.
Hi All, We have analyzed the positioning of Tata Nano (Kellogg School of Management Case Study)... We have looked into the current sales trends as of 2015... We have proposed an unique positioning... Hope you will appreciate.
This slide cover how the nano concepts are emerged. All marketing strategies are covered in this slide. 1 lakh costing car and its feature are analysed in this slide.
Tata nano-mba-542 nano in bangladesh nana business Abdullah Al Masud
launched in 2008, Abdul Matlub Ahmad, the chairman of the Nitol Niloy Group, Tata Motors Ltd's manufacturing partner in Bangladesh, had ordered four of them from the first series.
Now, he's back with a business proposal, which might revive Nano's future prospects.
RATAN TATA
Two-wheelers - with the father driving, the elder child standing in front and the wife behind holding a baby - is very much the norm in this country. In that form two-wheelers are a relatively unsafe mode of transporting a family. The two-wheeler image is what got me thinking that we needed to create a safer form of transport The two-wheeler image is what got me thinking that we needed to create a safer form of transport.
Detail explanation of Ultra low cost car segments.
brief explained with an example of TATA NANO CAR
Global Market study and forecast of Ultra low cost car.
Its product development and Approach.
Challenges and Opportunities of Ultra low cost car segments
Target costing is defined as a cost management tool for reducing the overall cost of a product over its product life cycle. Management utilizes this pricing technique to meet both the demands of its customers as well as company profit goals. Target costing is particularly popular among Japanese firms such as Toyota, Nissan, Toshiba and Daihatsu Motor in various industries such as automobile, manufacturing, electronics, machine tooling and precision machine manufacturing.
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The digital marketing industry is changing faster than ever and those who don’t adapt with the times are losing market share. Where should marketers be focusing their efforts? What strategies are the experts seeing get the best results? Get up-to-speed with the latest industry insights, trends and predictions for the future in this panel discussion with some leading digital marketing experts.
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Search Engine Marketing - Competitor and Keyword researchETMARK ACADEMY
Over 2 Trillion searches are made per day in Google search, which means there are more than 2 Trillion visits happening across the websites of the world wide web.
People search various questions, phrases or words. But some words and phrases are searched
more often than others.
For example, the words, ‘running shoes’ are searched more often than ‘best road running
shoes for men’
These words or phrases which people use to search on Google are called Keywords.
Some keywords are searched more often than others. Number of times a keyword is searched
for in a month is called keyword volume.
Some keywords have more relevant results than others. For the phrase “running shoes” we
get more than 80M relevant results, whereas for “best road running shoes for men” we get
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The former keyword ‘running shoes’ has way more competition from popular websites to
new and small blogs, whereas the latter keyword doesn’t have that much competition. This
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In other words, if the keyword difficulty is ‘low’ or ‘easy’, there won’t be any competition
and if you target such keywords on your site, you can easily rank on the front page of Google.
Some keywords are searched for, just to know or to learn some information about something,
that’s their search intention. For example, “What shoe size should I choose?” or “How to pick
the right shoe size?”
These keywords which are searched just to know about stuff are called informational
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Conversion funnel is the journey that search visitors go through on their way to an email
subscription or a premium subscription to the services you offer or a purchase of products
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For some buyers, research is the most important part when they have to buy a product.
Depending on that, their journey either widens or narrows down. These types of buyers are
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Conversion is the action you want from your search visitors. Number of conversions that you
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People who are at different stages of a conversion funnel use different types of keywords.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
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Applications of 3D and AR in Digital Commerce,
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Digital Money Maker Club – von Gunnar Kessler digital.focsh890
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Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
Key Takeaways:
• Uncover the power of a foundational marketing system that dynamically communicates with prospects and customers on autopilot.
• Harness neuroscience and Tribal Alignment to transform your communication strategies, turning potential clients into fans and those fans into loyal customers.
• Discover the art of automated segmentation, pinpointing your most lucrative customers and identifying the optimal moments for successful conversions.
• Streamline your business with a content production plan that eliminates guesswork, wasted time, and money.
2. About TATA
motors
Established in 1945, the company is top 1 automobile
manufacturer in India, world’s 4th largest truck
manufacturers and world’s third largest bus manufacturer.
Tata motors has produced & sold more than 4 million cars in
India so far.
It has more than 25000 employees, 4500 engineers and
scientists and with R&D.
Tata launched “TATA INDICA” India’s largest selling car,
which is India’s first fully indigenous car.
In 2005, they created a new segment mini trucks with the
launch of “TATA ACE”.
In Jan 2008, TATA unveiled its “People car” , TATA NANO the
cheapest car.
3. Business
Models for
TATA NANO
Dream of Sri RATAN TATA, a car cheap enough for motor
cycle buyers.
For this project, TATA adopted “COLLABARATIVE
APPROACH”, which usually believes in vertically integrated
approach and company believes it could do everything
better than others
BUSINESS PROCESS OUTSOURCING
Outsourcing was into New product development, SCM,
Design and styling of its products also.
Refined the manufacturing process by breaking down every
component of the car into its smallest pieces.
eliminating everything that was unnecessary.
4. Business
Models for
TATA NANO
Continued…..
outsourcing its manufacturing to a limited number of
suppliers.
NANO was more eco-friendly and affordable with a millage
of 23 KM/ltr.
It even attracted rich individuals.
“A Promise is a Promise” said Ratan TATA, on launch of TATA
NANO.
The NANO project didn’t grab the attention of only Indians
but whole word.
7. IDEA
SCREENING
Three major requirement of TATA Motor’s engineers is
Low cost (₹ 1,00,000)
Emission Norms
Acceptable performance standards( 4 wheeler)
8. Company
generated
several ideas,
such as….
A scooter with two more back wheels for better stability.
An auto rickshaw with four wheels?
A four wheeled rural car?
A four wheeled open car with safety side bar?
Made with openings like auto rikshaw?
And so on…
But market wanted a CAR and not something people would say
“That’s just a scooter with four wheels or auto-rickshaw with four
wheels”
9. RESEARCH &
DEVELOPMENT
Named the project X3 consisting of 5 major team members from
different disciplines.
Girish Wagh one of the 5 members, did something no one at tata
thought of,
“He interacted with customers”
He approached with a question, why? Why do you want a four
wheeler?
Interestingly, customers said,
“If I had a four wheeler, I would have better marriage prospects in
my village”
Drivers of 3 wheelers are looked down upon in India.
Then he understood that four wheels had an emotional, not just
practical.
10. BUT
what type of
product?????
The car has to be built on a different platform as compared to the
conventional one.
It must meet all the safety and regulatory requirements.
The car has to be designed so that it can be exported.
The car must be a beacon for the Indian automobile Industry and
prove the world India is capable enough.
11. Continued…
The design team initially came up with a vehicle which had bars,
which wasmore of a quadricycle than a car, so a failure.
Wagh used to spend an hour or two on the floor in order to take
suggestions from designers, manufacturing team.
Then team grew into 500 members, on a daily basis 5 core
members gathered to discuss about development and
suggestions.
Ratan Tata insisted to change the design, he wanted it to be easy
for tall people to get in and out and the height was increased by
100millimeters.
The initial two cylinder engine was 580cc, later the capacity raised
to 624cc to have optimumengine performance.
12. COST
CUTTING
FEATURES
The trunk is only accessible from inside the car as the rear hatch
doesn’t open
One wide wiper instead of usual pair.
No power steering, radio or music can be fitted as accessories.
No air bags In any model
624cc two engine cylinder.
No air conditioning.
To ease the assembly, body panels are glued instead of welded.
13. Collaboration
as a source of
innovation….
TATA MOTORS considered COLLABORATION as the source of
innovation from different company’s idea to reduce cost.
TATA divided the components into two types – proprietary design
andTatamotors design.
For proprietary design components Tata went with established
suppliers such as BOSCHGROUP.
BOSCH GROUP, which supplies the engine management systems.
14. BOSCH GROUP
Bosch group decided to take the challenge to be a part in cheapest
car though they (Bosch) developed systems only for high end
vehicles.
Bosch again split the development between its design centers
Bangalore and Germany
Using local design capabilities was a crucial decision and
employment took place at higher wage levels.
Bosch developed a software consists of electronic control unit,
fuel injectors, sensors, ignition oil, tank vent level and throttle
body assembly.
Cost effective “drum brakes” were used.
15. SUPPLIERS
There were more than 100 suppliers.
The brief to suppliers was:
“Make things smaller and lighter, do away with superficial parts, and
change the material wherever possible”
A few did their own way and few developed with the tata motors.
Arvind Kapur, CEO of Rico, supplier of blocks to the engine,
decided to use aluminum for engine instead of traditional cast iron
as it was smaller, lighter and cost was less.
Rico also found a way not to connect the engine with the rear
wheels
Price negotiations from Tata motors side apparently started from
50%of what suppliers offered.
16. Distribution
Manufacturing
EOS was very crucial factor to reach low cost of the product.
Tata wanted to build one million Nano’s per year.
NANO is constructed of components that can be built and shipped
separately to be assembled in a variety of location.
So. Tata nano is being sold in KITS.
Any local entrepreneur can establish assembly unit and can sell in
pre-defined locations.
17. TATA NANO-A
GLOBAL
CAR?
Though It succeeded in creating huge market hype before the
launch, it took whole 2 years to sell its 1,00,000th car.
Couldn’t meet the annual sales expectations of 2,50,000 cars.
First reason is the forced movement of production plant from west
Bengal to sanand, Gujarat because of strike.
“Hence company was unable to deliver cars to first buyer’s in time”
Few fire incidents and resulted media sensitivity.
Negative word of mouth from non targeted customers who
bought the car.
Positioning as “worlds cheapest car” was actually a disaster in
global market.
19. How do you view Tata Nano as an innovation ?
A differentiated product or a low cost product
20. Differentiated
+
Low cost
product
Tata Nano is a both a differentiated product with the lowest
possible price.
Tata Nano is a low cost car by the positioning itself as the “Worlds
cheapest Car” with a price tag of ₹ 1,00,000.
Started with the theme “A car for everyone”
Targeted to 2 wheeler motor cycle buyer who cant afford 4
wheelers
Low cost product with complete entry level features.
Tata Nano is differentiated in a very different manner,
Stating itself as worlds cheapest affordable car
Nano born with the emotional touch and that created a huge
market hype.
Collaborative approach with more than 100 suppliers for this
project is truly uniqueness
Also targeting is differential factor.
21. Tata Nano could not have seen the light of the day had it not
embarked upon a policy of collaborations and alliances.
Do you agree? Justify?
22. Without
collaborations
and alliances,
NANO wouldn’t
have reached
customer.
Bosch being a major player in supplier took a challenge and
succeeded in providing with the least cost technology.
Giving free decision making to the suppliers made them innovators.
Without the suppliers the Nano would have been costlier in several
factors.
The innovation was faster as each supplier produced simultaneously.
Innovation from different suppliers.
The plants and employment might have increased the price of end
product.
Breaking down of components and outsourcing them gave an option
to concentrate more on that particular product.
Tata Motors bargained up to 50%with the suppliers.
23. Despite the huge market hype and the first mover advantage,
it appears that company has not able to cash upon in? do you
agree with this? What are the reasons for this?
24. Yes, TATA
MOTORS was
unable to cash
upon it.
Because,
The annual sales expectations of 1 lakh per year was not reached.
It took 2 long years to reach its 1,00,000th car.
Strikes in west Bengal resulted in movement of production plant
to sananda, Gujarat which not only resulted in 18 months delay to
first buyer and also huge cost.
It also resulted in heavy inventory costs.
Few fire cases made customers to back out on the verge of
buying, safety does matter.
The sound of 2 cylinder engine was a major negative factor which
made it sound like a auto.
Negative word of mouth by non targeted customer group.
25. Continued..
Lack of basic features made it just plane product but not a
complete car.
The price gap between Nano and Suzuki alto was only around
50,000 after equipping Nano with necessary accessories.
The positioning was a unable to attract customers as they still
looked car as a status of symbol.
No one wants to own a car, that showcases as cheapest car.
Style
Craze over 2 wheelers and convenience of travelling in rural areas
with two wheeler in lands.
Well, the launch of 2012 model, is a success.
26.
27. What is the role of leadership and strategy execution in
bringing out such zero- base products? Justify your answer.
28. Team work
Suggestions
from everyone
freedom to
suppliers in R&D
A team of 500 members lead by 5 core members made Nano into
reality.
Mr. wagh used to take suggestions from every person in the plant
to make it better and better with least cost.
The suppliers are allowed to research for their particular part so
that they can come up with innovative ideas.
29. Collaborative
approach
Open distribution
Cost reduction (Low
cost provider strategy
with manufacturing
strategy)
EOS
Niche market
For this project RatanTata believed “Together more can be
achieved”
More than 100 suppliers, everyone trying to reduce the cost.
Anyone with an assembly plant can become a distributer for that
particular region.
Cost reduction of each and every part resulted in low price.
Economies of scale is a strategy that they have planned but failed.
Tata Nano targeted to motor cycle buyers instead of car buyers.
Penetration pricing.
STRATEGIES
COLLABARATIVE APPROACH= few companies coming together for a common cause.
Vertically integrated approach= major things are done in company without any other co help.
KM/LTR= kilo meter per litre
EOS= Economies of scale
Strike for 1000 acre land
Accessories such as music, Ac
Nobody wants to show they have the worlds cheapest car, a middle class family