Tata Nano is an inexpensive, rear-engined, four-passenger city car produced by Tata Motors of India. It was designed to be affordable for the average Indian citizen, with a base model price of around $2,500. To keep costs low, it uses plastic and adhesive in place of welding and lacks amenities like air conditioning, power steering, and airbags. Despite safety concerns from some, the Nano addresses a need for basic, affordable transportation and has the potential for global appeal if Tata can control costs and improve perceptions of the car's safety.

1. Tata Nano

2. Introduction
• Tata Nano is an inexpensive, rear-engined, four-
passenger city car built by the Indian company Tata
Motors
• This nickname is due to the Nano's price point,
nearly 100,000
• Less expensive after the road tax, service tax & the other
registration fees.
• Greatest strengths of Nano is its tiny price tag.

3. Pricing
• It used plastic and adhesive instead of welding.
• No AC, No power steering, No Air bags, No power
window.
• Used inexpensive polymers or biodegradable plastics
instead of a full metal-body.
• 624 cc 2 cylinder engine.

4. Price of different models
• Tata Nano Base model
Rs. 135000
• Tata Nano CX
Rs.164481
• Tata Nano LX
Rs.186498

5. Controversy of increased price
• Price increased as increase in input cost. especially
metal.
• Increase in excise duty after union budget of 2010.

6. Planning & Strategy
Questionnaire Hypothesis after research
• Discussion with Decision • Nano is safe for driving
maker • Conversion of Nano to a
• Interview with Expert Taxi; do not affect the
• Secondary data Analysis brand image &
• Quantitative Research consequently sales.
with 10 people • Hike in sales do not affect
sales
• Prefer Nano instead of two
wheeler
• People can wait for 2
months

7. Could have also included
• It should not have waiting period
• Ratan Tata’s statement : Promise is a promise
• Exchange offer
• Safety measures can be enhanced because it is a prime
concern while purchases
• Customization

8. Consumer behaviour
Need Recognition
24%
safety
8%
Need
68%
Esteem
Classification of consumer need

9. Consumer behaviour
Information Search
12%
22%
TV
Reference Group
Magzine
66%
Preference of channel of information

10. Consumer behaviour
Evaluation of alternative
• After collecting the information, consumers arrive at
some conclusion about the product
• In this stage consumers are comparing different brands
based on set parameters which he or she thinks required
in the product
• Since it is clear from the above data that majority of the
people are buying the car driven by safety need

11. Consumer behaviour
Purchase decision
• In this stage consumer buy the most preferred brand
• The decision of making the particular brand is made
after consumer conviction over the alternative product
• There are two factors which are making people to
postpone the purchase of Tata Nano.
– Lack of information
– Diffusion Process

12. Consumer behaviour
Post purchase evaluation
• After purchasing the product consumer will experience
some level of satisfaction and dissatisfaction
Satisfaction: 22% Satisfied 78% Dissatisfied
20% Equally
Safety: 8o% Average Safe safe

13. Consumer behaviour
Role of impulse purchase in decision making process
• An impulse purchase or impulse buy is an unplanned
decision to buy a product or service, made just before a
purchase
• The research has shown that buying a Tata Nano falls
under complex buying behaviour despite the low price
• The research has also shown that people wait for 1 to 2
year before buying the product like Tata Nano

14. Consumer behaviour
Target Audience
• Who will buy the Tata Nano?
88
12
First Car Second Car
consumer preference of Tata Nano

16. Consumer behaviour
Strength Weakness
Cheapest NO MORDEN FACILITIES-
Eco-Friendly ABS, PS, AC etc
Fuel Efficiency & Engine Not suitable hilly areas
Stylish Poor engine cooling & hence
overheating
Small tyres and fiber body
Opportunities Threats
Cost Control Traffic Congestion
Parking Space Cost may increase in Future
Low Maintenance Bad impression due to late date
World Wide Appeal in market
Created a Niche market Security not secure
Competitors –
HYUNDAI, BAJAJ, GM

17. Thank You