The document provides an analysis of introducing Tata's Nano car into the US market. It begins with an introduction to Tata and its international presence. It then performs a SWOT analysis and identifies political, economic, social, technological, and competitive factors that could impact Nano's entry. Three scenarios are mapped out - Oasis (optimistic), Nostradamus (most likely), and Curse of Blossom (pessimistic). Competitors are analyzed for each scenario. The point of difference, brand image, product features, and pricing strategy are proposed for each scenario.

1. NANO in US

2. INTRODUCTION
 Tata’s International Presence
• First Indian engineering company to be listed on New York Stock
Exchange
• Acquired international companies Daewoo (South Korea), Carrocera
(Spain), Jaguar Land Rover (Britain)
• Commercial and passenger vehicle cars marketed and exported in
Europe, Africa, Middle East, South East Asia, South Asia and South America
High Fuel
 Vision : Best in the manner in which Efficiency
we operate, best in the products we deliver, and
best in our value system and ethics
Roomy
Passenger
PEOPLE’S Minimum
Weight
Compartment CAR
Low CO2
Emissions

3. SWOT ANALYSIS
STRENGTHS WEAKNESSES
• Cheap car • Does not comply with US safety
• Compact, cute and adorable standards
• Use for a year and change • Labeled as “cute death trap” in
attitude US
• Other smart car brands expensive • Unfit for travel on highways
like Mercedes • Labeled as a kids use car
• Easy parking
OPPORTUNITIES THREATS
• Fuel Efficient • Low profit margins
• Environment friendly • Safety low as compared to large
• Large single population heavy cars
• Large Generation Y
• Budget conscious buyers
• Sexy factor

4. MAJOR EVENT EFFECT OF THE PROBABILITY OF
EVENT ON OUR THE EVENT
BUSINESS(+3 OCCURING (0 TO
TO -3) 100)
Termination of Cash for Clunkers program – POL1 -1 80
Obama’s second term /Democrats – POL2 1 60
USA emission cut target by 2020 for Copenhagen meet
leads to new emission standards for new cars – ECL1 1 60
Global protest on resource wastage – ECL2 2 50
Hybrid cars becoming technologically superior &
cheaper – TEC1 -2 50
Increased penetration of Information Technology for
consumers – TEC2 -1 60
Change in cultural norms – SOC1 2 70
Change in consumer attitudes – SOC2 2 60
Revival of Economy – ECO1 -1 70
Depreciation of USD with respect to INR – ECO2 -2 70

6. SCENARIO MAPPING
OASIS – Most Optimistic Scenario •Based on consumer awareness and
regulatory requirements
•Environmental Friendliness
•Safety
•Cost efficiency
NOSTRADAMUS – Most Likely •Cash for Clunkers
Scenario •Preference for US products
•Depreciation of USD with respect to
INR
•Nullification of the cost advantage
enjoyed by Indian and Chinese car
manufacturers
CURSE OF BLOSSOM – Most •Increase in purchasing power due to
Pessimistic Scenario end of recession
•Increase penetration level of IT
•Breakthrough in Hybrid technology

7. COMPETITOR ANALYSIS
OPTIMISTIC MOST LIKELY PESSIMISTIC
KEY SUCCESS Cost of Customer’s Design
FACTORS ownership brand Convenience
Environmental perception Variance
friendliness Customer value Fuel efficiency
Safety for money
Fuel efficiency
and
environmental
friendliness
MAIN Chinese cars US Brand cars US Cars
COMPETITORS US cars imported from Japanese Cars
Japanese Cars India & China Hybrid/ Electric
Chinese & Indian Cars
Cars
Japanese cars

8. OPTIMISTIC
SCENARIO - OASIS
Very
Important
US cars Chinese cars NANO
Japanese cars
Cost of
Ownership
US cars
Environment
Friendliness
Chinese cars NANO Japanese cars
Safety Chinese cars NANO Japanese cars US cars
Less
Important
Weak Strong

9. MOST LIKELY SCENARIO -
NOSTRADAMUS
Very
Important
Chinese cars Japanese cars US cars
NANO
Brand
Perception
US cars NANO
Value For Money
Chinese cars Japanese cars
Fuel efficiency US cars Japanese cars Chinese cars NANO
Less
Important
Weak Strong

10. PESSIMISTC SCENARIO –
CURSE OF BLOSSOM
Very
Important
Chinese cars NANO US cars Japanese cars
R&D
US cars
Environment
Friendliness
NANO Chinese cars Japanese cars
NANO US cars Japanese cars
Purchasing factor Chinese cars
Less
Important
Weak Strong

11. 1
OPTIMISTIC MOST LIKELY PESSIMISTIC
Point of Lowest price, fuel efficient Fuel efficient, convenience Mass customization and
difference convenience
Brand/ •Inexpensive •Small •Convenient
Image
•Safe •Efficient •Hip
Propositi
on •Fuel efficient car for short distance •Less pollution car - caters to the •Affordable
travel primarily within the city needs of all the low income
customers
•Budget car with a superior
performance
Product -Basic Model: Comes in 5 different -Nano comes with Basic and -Meet existing US automobile
colours. Micro-Hybrid versions. emission standard and safety
standard
- More colour variance
- Tata should also speed up its R&D - 5 different colors.
on hybrid technology to launch
hybrid version along with gas- - Allow customers to customize
- Add some accessories to appeal
powered version the car stickers or to add
to university students
accessories to appeal to the
- Leverage brand image of Jaguaar
young and modern customer
- Leverage brand image of Jaguaar segments
- Leverage brand image of Jaguaar

12. OPTIMISTIC MOST LIKELY PESSIMISTIC
Price •Recommended price is •Target customers – Price •Target Customers - Less price
USD2600 Sensitive. Hybrid version to be sensitive. Price is USD3000
sold at USD3500 with the
•Target profit margin is 8% • The profit margin is 15%
promise of mileage of 65 mpg
(compared to 2-3% for current (compared to 2-3% for current
based on EPA fuel efficiency
model) model). The hybrid version will
test.
be sold at USD3700.
•Recommended price is
•Price can be increased to raise
USD2800
the contribution margin.
•Target profit margin is 10% Higher margins would make
(compared to 2-3% for current mass-customization viable.
model)
Place/ - Use dealers for distribution, competitive distributor margin is given
Distributio - Selective strategy in the short term, start with smaller cities
n - Increase the Intensity gradually to reach throughout the country
- Set up show rooms and service centers at major cities
- Customers can also book their cars through internet website and select the required features.

13. OASIS
Oasis (in USD '000s)
2010 2011 2012
No of Units Sold 80 120 180
Profit Margin Per unit 0.4 0.45 0.4
Revenue 208000 312000 468000
COGS 176000 264000 396000
Gross Profit 32000 54000 72000
Marketing Expenses
TV, Media 5200 7800 11700
Internet 6240 9360 14040
PR 5200 7800 11700
Road Shows Etc. 4160 6240 9360
TOTAL Marketing Exp 20800 31200 46800
Other Expenses 8320 12480 18720
Net Profit 2880 10320 6480
Cummulative Profit 13200 $19,680.00
Break Even 73 97 164

14. NOSTRADAMUS
Nostradamus (in USD '000s)
2010 2011 2012
No of Units Sold 46 51 60
Profit Margin Per unit 0.6 0.55 0.55
Revenue 138000 153000 180000
COGS 101200 112200 132000
Gross Profit 27600 28050 33000
Marketing Expenses
TV, Media 3450 3825 4500
Internet 4140 4590 5400
PR 3450 3825 4500
Road Shows Etc. 2760 3060 3600
TOTAL Marketing Exp 13800 15300 18000
Other Expenses 5520 6120 7200
Net Profit 8280 6630 7800
Cummulative Profit 14910 $22,710.00
Break Even 32 39 46

15. CURSE OF BLOSSOM
Curse of Blossom (in USD '000s)
2010 2011 2012
No of Units Sold 20 22 19
Profit Margin Per unit 0.8 0.75 0.7
Revenue 60000 66000 57000
COGS 44000 48400 41800
Gross Profit 16000 16500 13300
Marketing Expenses
TV, Media 1500 1650 1425
Internet 1800 1980 1710
PR 1500 1650 1425
Road Shows Etc. 1200 1320 1140
TOTAL Marketing Exp 6000 6600 5700
Other Expenses 2400 2640 2280
Net Profit 7600 7260 5320
Cummulative Profit 14860 $20,180.00
Break Even 11 12 11

16. OASIS
CONSUMER BELIEFS
Low Price 52%
Environment 15%
Friendly
Safe 33%

17. 5
NOSTARDAMUS
50%
Market share
3 7 1.5%of small
30 70
Car market
% %
1 1 Units sold
EVA ( in $ ’0,000 ) 0 1 100
Relative market 35000
% % Units
5 share
3 7
1 1
Payback period(in 0
years)
NOSTRADAMUS – Most likely Scenario

18. 5 CURSE OF BLOSSOM
50%
3 7 30 70 Market share
% % 2.5%of small
Car market
1 1 1 100
0 % % Units sold
Brand Development
Relative market 59000
Index
share Units
5
3 7
1 1
Percent Good 0
Value
NOSTRADAMUS – Most likely Scenario

19. THANK YOU !!