The document analyzes various factors that influenced the success of the Tata Nano, including economic, technological, competition, legal, political, consumer choice, product, price, positioning, distribution, and CRM factors. It notes that the Nano fulfilled the need for affordable transportation for middle class families in India. It was successful due to its low price of 100,000 rupees, support from the government, and Tata's strong brand and distribution network.

2. INTRODUCTION
 “I observed families riding on two-
wheeler the father driving the
scooter, his young kid standing in
front of him, his wife seated behind
him holding a little baby. It led me to
wonder for such a car which is safe &
affordable to any middle class
family.”
- Ratan Tata

3. TATA

4. ECONOMIC FACTORS
 Opportunity
 Inflation rate: (-0.21)
 Per Capita Income
 Rs. 18,885 in year 2002-03
 Rs. 38,084 in year 2008-09
 Market share of two Wheelers is
76.5% Prospects

5. ECONOMIC FACTORS (CONTD.)
 Threats
 Fuel price hikes may prove challenging
for Tata Nano.
 Increase in material cost like steel and
tires

6. TECHNOLOGICAL FACTORS
Influence of Technology on Customers’ Lifestyle:

7. COMPETITION FACTORS
 Threats
 Direct Competition: Maruti Suzuki Alto, Reva
Competition
 IndirectCompetition: Second Hand/Used
Competition
Car Market
 Substitutes:
Substitutes Two Wheelers, Public transport,
Tube Rail & Metro Rail, Auto Rickshaw
 New entrants: Bajaj-Renault-Nissan Small
Car, Ajanta Group Small Car, Mahindra 1.3
lakh Rupees car, Honda Siel

8. LEGAL FACTORS
 Opportunities
 State Bank of India’s Loan
 11.75% for five Years
 12 % for Seven Years
 MOU with UCO Bank for financing Nano
 Agreements with 15 Banks for Loans
 100% exemption on electricity duty for
Production of Nano

9. POLITICAL FACTORS
 Opportunities
 Support of Gujarat Government

10. CONSUMER CHOICE DECISION
FACTORS
 Opportunities
 Affordable Price
 Small Family Car
 World’s cheapest car
 Comfortable seat for four person
 Available in both petrol and diesel
engines

11. CONSUMER CHOICE DECISION
FACTORS (CONTD.)
 Opportunities (Contd.)
 Average of 22 Kilometers per liter
 Available in three different models
 Tata Nano Standard
 Tata Nano CX (Deluxe)
 Tata Nano LX (Luxury)

12. PRODUCT FACTORS
 Strengths
 Small Car.
 Available with Air Condition, power
window in Luxury model.
 Available in both petrol and diesel
engines
 Warranty: 18 months or 24,000 km,
whichever is earlier

13. PRODUCT FACTORS
 Weaknesses
 No power steering
 Used partially inexpensive polymers
or biodegradable plastics instead of
metal
 Lesser safety as fuel tank is right
under the front seats.

14. PRICE FACTORS
 Strengths
Model Features Price (Rs)
Nano Std - 1,23,000
Nano Deluxe AC 1,51,000
Nano Luxury AC, Power Window 1,72,000
and Central Locking
 There is no such car available in present
market that comes in price lower than
Nano

15. POSITIONING FACTORS
 Strengths
 USP : ONE LAKH RUPEES CAR,
THE PEOPLE’S CAR
 World’s Cheapest car
 Common man car
 Small Family car

16. DISTRIBUTION FACTORS
 Strengths
 Tata Nano is a product of Tata Motors
Ltd.
 Tata Motors already has a distribution
alliance with Italian car maker Fiat Spa.
Fiat to sell Tata Nano in overseas market.
 Booking of Nano can be done in 146
cities across 29 states all over India.

17. CRM FACTORS
 Strengths
 Financial Bond
 Low Price car
 Cheapest Car in the world
 Value for Money
 Social Bond
 Small Family Car

18. CRM FACTORS (CONTD.)
 Strengths (Contd.)
 Structural Bond
 Tata’s good image in market
 Satisfaction of customer with Tata Indica.
 Customization Bond
 Fulfilling the latent need of middle class
people to have a car.

19. CRM FACTORS (CONTD.)
 The first three customers received their
Nanos from none other than the chairman
of Tata Group, Ratan Tata, this was the
first time in the history of Indian Industry
a customer receives the keys of car from
the Owner of car company.

20. SOURCES
 www.tatanano.com
 www.tatamotors.com
 www.scribd.com
 http://www.siamindia.com/scripts/market-share.aspx
 http://www.thefinblog.com/2009/01/inflation-rates-of-india-2009.html
 http://www.rediff.com/money/2009/feb/09indias-per-capita-income-do
 http://www.dancewithshadows.com/autoindia/tata-nano-sbi-canara-ban
 http://www.tatamotors.com/nano/prefered-finance/.htm
 http://en.wikipedia.org/wiki/Tata_Nano