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Submitted to: Submitted by-:

Prof. Tripti Ghosh Parth Arora-1078

Gagandeep Singh-1079

Mayank Shukla-1085

Kuldeep Dixit-1083

Rishub Pal-1080

Tushar Sardana-1081

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Table of Content

Sr no. Particulars Page no. Remarks Signature

1 Executive Summary 4

2 Background 5

3 SWOT &Marketing Mix 6-10

4 Objective of thestudy 11

5 Research Design 12-13

6 Data Analysis 13-18

7 Conclusion 19

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Acknowledgment

We have taken efforts in this project. However, it would not have been possible without the

kind support and help of all the people who helped me in the project report. I would like toextend my sincere thanks to all of them.

We are highly indebted to Prof. Tripti Ghosh for her guidance and constant supervision aswell as for providing necessary information regarding the project & also for their support incompleting the project.

We would like to express our gratitude towards our parents & Prof. Tripti Ghosh for theirkind co-operation and encouragement which help me in completion of this project.

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Executive summary

Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1.5lakh

i.e. approximately USD 2000. It is manufactured by Tata Motor Limited, the largest to

automobile company in India. Its Chairman, Mr Ratan Tata envisions that Tata Nanobecome a Peoples car which is affordable by almost everybody. Tata Nano was first

launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since

launching, it has created a huge buzz all over India. Within the first two days of lunching, it

has received 5500 booking. The figures keep increasing every day since the launching. What

makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with

superficial parts and change the materials wherever possible without compromising the safety

and environmental compliance. It is said that Tata Nano has better mileage than Toyota Prius

and same gas emission as a scooter Tata Nano will be imported to Malaysia by Tata

Industries in parts. It will be assembled in its two factories i.e in Shah Alam, Selangor and

Pasir Gudang, Johor Bahru. There are four distribution centres in Peninsular Malaysia i.e. in

Kuala Lumpur, Penang, Johor Bahru and Kuantan. All Tata Nano cars will be distributed

through these distribution centres only. Order can. Be made with these distribution centres or

its web site. There are three types of Tata Nano car available i.e. Tata Nano, Tata Nano CX

and Tata Nano LX. However, due to hot weather in Malaysia, only Nano CX will be brought

to Malaysia and will be sold here. The purpose of this research is to find the attitude of the

customers, for this we have defined the objective of the research; we have also done sampling

and finally data analysis.

Background:In this we have included three things:

Past information: NANO which is a brain child of Ratan Tata raised hope for alot of lower Middle class families by giving them the status of owning a car.

Expectations were increasing amongst the customers regarding the product features

and its efficiency. Competitors were eagerly waiting for its arrival to find whats

inside NANO? The only factor the customer knew in advance was its price tag of 1

lack as conveyed by Ratan Tata. Price itself was a major strength factor for the mini

magical vehicle which created a sensation all over the world. Even US president

Obama was all praises for the Nano during his Indian visit, an appreciation which

soon spread across the world. The five seater car Nano from Tata finally arrived in the

market. The strengths of the product included its small size, ease in handling and good

mileage efficiency. It directly took on the motorcycle market and tried to attach a

status symbol to itself such that customers prefer the Nano above buying a

motorcycle. Thus they get a four wheeler instead of a two wheeler. However, sales

did not increase.

The launch price came in two variants ranging between 1.2 lacks to 1.5lacs. It was 20

50% higher then the proposed rates which was a major setback to customers. Within

a few months of initial sales, technical problems were found in the product and there

were a few reports ofNano catching fire, which further weakened the trust for thebrand Nano as a whole. Tata also faced political problems and had to shift the plant

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location which led to production delays. And now due to inflation, Nanos prices have

further increased due to increase in the prices of raw material such as steel, rubber and

others. Happen as expected and Tata Nano lagged behind.

Obstacles:Controversies also arose about Tata's planned manufacturingunit for the car in Singur, WestBeng al , whe re th e s ta te go ver nme nt of Wes t B enga l h as a l l oca ted 997 ac res (4 .03 km ) to T a ta Motors . The

construction of the car factory on that tract of land will require fe rtile

agricultural land and the expropriation and eviction of ca. 15,000 peasants and

agricultural workers.

The affected farmers fear they will receive inadequate or no compensation and

therefore lose their livelihoods. Activists near Kolkata, where Tata's manufacturing

unit is located, started burning the car.In New Delhi, a group of six women protested

wearing T-shirts bearing slogans that said, "The Rs 1lakh car has Singur people's

blood on it." The Trinamool Congress alleged that Tata motors usurpedthe agrarianland for the construction site and have threatened to stall the manufacture of the car.

The11 cases were dismissed.

The Nano is alleged to have severely affected the used car market in India, as many

Indians opt towait for the Nano's release rather than buying used cars, such as the

Maruti 800 (a rebadged SuzukiAlto), which is considered as the Nano's nearest

competitor. Sales of new Maruti 800s have dropped by 20%, and used ones by 30%.

The decision to relocate the Nano to Gujarat marks the end of a traumatic experience

for the house of Tat as . I t was th e ra pid dec isi on mak in g of the

Gujara t government which car r ied the day for the Narendra Modi

government, with the state government ready to hand ov er land within a

mat ter of days.In a n i n ter view shor t ly befo re r ushi ng o f f t o me et t he

CM, Mr. Tat a lo oke d b ac k o n t he Sin gur experience and spoke about

the new scenario facing the Nano. Intriguingly he l eft some hope

for Singur saying that Tata Motors could revisit Singur if the atmosphere was

conducive.

External Enviornment(pest analysis)Political

Since Tata Motors operates in multiple countries across Europe,Africa, Asia,t h e M i d d l e E a s t , a n d A u s t r a l i a , i t n e e d s t o p a y c l o s e a t t e n t i o n t o t h e

pol i t ica l c l imate but a lso laws and regula t ions in a l l the countr ies i toperates in while also paying attention to regionalgoverning bodies. Laws

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governing commerce, trade, growthand investment are dependent on the localgovernment as well as howsuccessful local markets and economies will be due toregional, national and local influence. In accordanc e, Tatas headquartersinMumbai, India, strictly controls and regulates operations in alldealershipsand subs idiar ies , in addi t ion to knowing and abiding byal l labor laws in

the mult iple countries where they have manu fac tu rin g pla nts i t ha s t o wat chp o l i t i c a l c h a n g e .

E c o n o m i c :

Operating in numerous countries across the world, Tata Motorsfunctions witha g lobal economic perspect ive whi le focus ing on eachindividual market .Because Tata is in a rapid growth period,expanding or forming a joint venture inover five countries world-wide since 2004, a global approach enables TataMotors to adapt andlearn from the many different regions within the wholeautomotiveindustry. They have experience and resources from five

continentsacross the globe, thus when any variable changes in the markettheycan gather information and resources from all over the world toaddress anyissues. For instance, if the price of the aluminum requiredto make engineblocks goes up in Kenya, Tata has the opt ion to get the a luminum fromother suppliers in Europe or Asia whothey would normally get from forproduction in Ukraine or Russia.Tata Motors also has to pay close attention toshifts in currency rates throughout the world. Currency fluctuations can equateto higher or ower demands for Tata vehicles which in turn affect profitability.I t can a l so mean a r i se in cos t s o r a d rop in r e tu rns . B u t they a l soh a v e t o p a y a t t e n t i o n t o n o t j u s t t h e d o m e s t i c c u r r e n c y , t h e r u p e e , b u ta l s o t o t h e d o l l a r , e u r o , b h a t , w o n , a n d p o u n d , t o j u s t n a m e a f e w .J u s t b e c a u s e t h e r u p e e i s s t r o n g a g a i n s t t h e d o l l a r d o e s n o t m e a n i tisstrong against all the other currencies. Attention to currency isimportantbecause it influences where capital investment will develop.

Social:

Undoubtedly, the beliefs, opinions, and general attitude of all thestakeholders ina company will affect how well a company performs.This includes everys takeholder f rom the CEO and Pres ident , down to the l ine workers whoscrew the door panel into place,from the investor to the customer, the culture and

attitude of all thesepeople will ultimately determine the future of a company andwhether they will be profitable or not. For this reason, Tata Motors tends tousean integration and rarely separation technique with foreigncompanies theyacquire. In 2004, Tata Motors acquired DaewooCommercial Vehicles Company,which was at the t ime Koreassecond largest t ruck maker. Rather thanus in g de -c ul tu ra ti on or assimilating Daewoo, Tata took an integratedapproach, andcontinued building and marketing Daewoos current models aswe l l a s in t roduc ing a f ew new mode l s g loba l ly jus t a s i t had been doneu n d e r K o r e a n m a n a g e m e n t .

T e c h n o l o g i c a l :

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E m p l o y i n g 1 , 4 0 0 s c i e n t i s t s a n d e n g i n e e r s , T a t a M o t o r s R e s e a r c handDevelopment team is ahead of the pack in Indias market and rightwith therest of the field internationally. Among Tatas firsts are thefirst indigenouslydeveloped Light Commercial Vehicle, India's firstSports Utility Vehicle and, in1998, the Tata Indica, India's first fully indigenous passenger car, as well as the

increasingly famous TataNano, which is projected to be the worldsc h e a p e s t p r o d u c t i o n c a r ( T a t a ) . I n t h e a u t o m o t i v e i n d u s t r y , i t i sbecoming increasingly crucialfor manufacturers to stay on top of thetechnology curve wi th newproblems a lways r i s ing such as escala t ing gasprices and pollutionproblems. Tata recognizes this and dedicates lots ofresources andtime into research and development to be even with orpreferablyahead of other competitors, global trends, and changing economies.Inall, an automobile manufacturer must change, adapt, and evolve tostayc o m p e t i t i v e i n t h e a u t o m o t i v e g a m e , a n d t h i s i s e x a c t l y w h a t T a t a i sd o i n g w i t h t h e i r r a p i d g r o w t h .

Porters 5 forces analysis:

1-Threat of New Entrants:

Indian compact car market seems to be getting hotter, with not only better car models, but

also the intensity of the competition in the segment.The market which is growing at 20-25%

annually is attractinginternational player like Volkswagen, Toyota, Nissan and Ford,

all of whom are expected to come up with a number of new launches in thissegment of theIndian car market.

The new players plan to differentiatetheir products through competitive pricing and

additional features likeadded space, fuel efficiency and better performance. It seems

likecompetition is set to go to a whole new level for existing players in themarket.The way in

which Nano is produce such a methods will lead toeven more new manufacturing innovations

to offer affordable cars toconsumers. New entrants in this category need to address

variouschallenges such as inflation, low-price barriers, substantial changes inraw material

prices, and government regulations, for example vehiclesabove 650cc pay excise taxes in

India, but with 624cc engine, the Nano isexempt. Achieving a US$2,500 will be difficult forany carmaker, butgoing forward more automakers will develop low cost cars. It takes 4 to 5

years and a huge investment for a car maker to design and build a lowcost car, which itself

has low margins.So, there is threat of new entrant to Nano in the long run.

2-Rivalry Among existing Firms:

The small car market in India is very competitive with players likeMaruti Suzuki, Tata

Motors, Huyndai etc. which was pretty muchdominated by Maruti. But with launch of Nano

the 1 lakh car the wholemomentum of the market has shifted.Maruti is planning to first slash

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the price of its best-selling model800cc Alto which is priced at Rs2.3 lakh. And the price

change would beeffective only from 2010 once Tata Motors begins rolling out Nano fromits

Sanand plant in Gujarat in big number. Earlier, the news was thatMaruti may slash the price

of its 800 model to compete with Nano.The Nano is alleged to have severely affected the

used car marketin India, as many Indians opt to wait for the Nano's release rather than buyingused cars, such as the Maruti 800, which is considered as the Nano's nearest competitor. Sales

of new Maruti 800s have dropped by20%, and used ones by 30% following the unveiling of

the Nano. As oneautomotive journalist summarises; People are asking themselvesandus

why they should pay, say, 250,000 Rupees for a Maruti Alto, whenthey can wait and get a

brand new Nano for less in a few months time, acar that is actually bigger The launch of

Tata Nano is expected to diminish the sales of theused cars under Rs. 1 Lakh - 2 Lakhs range

and also the sales of the other entry level cars like Maruti 800, Alto, Chevrolet Spark etc.

Somecompanies such as Bajaj is working on a much less priced car and companies such as

Maruti will think of reducing the price of their smallcars.A source in the automobile industry

with direct knowledge of the plans said Alto will have a stripped down version (i.e. basic) to

competewith Tata Motors small car Nano.It shows there is threat of rivalry for Nano car.

3.Threat of substitutes:

The threat of substitute for Nano car is that of electric car, the newentrant in the small car

sector is the Morbi-based world famous clock-maker Ajanta group. The company is planning

to manufacture an electriccar at its unit at Kutch district and market it at a price lower than Rs

1-lakh Nano. The company is already manufacturing electric scooters and bikes under

Oreva' brand. Production of electric car is not difficult for them as the technology is almost

similar and 70 per cent of its parts can be produced in-house, giving them an edge over the

vehicle's pricing. TheAjanta group is serious in its attempt to keep the basic price of the

proposed car as low as Rs 85,000.At present, in the electric car segment only Reva car is

available inIndia. Another player in the small car segment, the Rajkot-based FieldMarshal

group, is in negotiations with Australian company FarnowTechnologies for a joint venture for

a low cost electric car.Tata itself is believed to be making an electric version of the

Nano,called the E-Nano which might well turn out to be the "world's cheapestelectric car"

which is more eco-friendly. It's supposed to be as cheap asthe conventional gasoline version.

Economic Times reported that the

"electric Nano" would still make good sense for economic, clean andgreen personal mobility

in countries around the world.Since two-wheeler owners are used to getting 60-70 km per

litre, ascompared to the Nano's 20+, the cost of ownership of a Nano is likely to be far higher

than that of a two-wheeler. One time investment of buyingcar can be done by the lower

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income group people but it will be difficultfor them to overcome maintenance cost and cost

of running i.e. fuel these people would like to remain in bike segment only.So there is a high

threat of substitutes for Nano as electric carstrying to keep prices lower, less cost of running

as a productdifferentiation.

4-Threat of bargaining power of buyer:

Tata Motors has to work out their strategies to meet the challengesof sales and after-sales.

The first is to meet the high demand that is likelyto get created. As there would be many first-

time customers, the salesforce will have to advise them on issues like running and

maintenance of the car. Further, the Indian consumer is very discerning and the productand

after-sales service quality will need to live up to the consumers'expectations for the Nano to

be successful.As the Nano car is made for lower income group people we can saythere is no

power in the hands of buyer at present as only Nano isavailable in Indian market but soonthere will be cheaper car in the Indianmarket and buyers will have power to switch to other

cars.

5-Threat of bargaining power of supplier:

For Nano about 60 suppliers collectively spent about Rs. 500crores ($112.7 million) to locate

on the Singur complex. Suppliers havesaid that they have the capacity in existing plants to be

part of the Tata Nano launch, if the Tata plant moves to Pantnagar, or even Pune. Othersuppliers are willing to stay, put and use their sheds as warehouses tostore the

components.The company said most of its vendor relationships are covered by abill

marketing system, where Tatas bank makes payments to thevendors, and Tata Motors pays

the bank.Tata Motors had set up a so-called suppliers council to addressseveral issues,

including delayed payments that were causing friction between the auto maker and its parts

suppliers.Rather than a threat to Nano, suppliers were supporting TataMotors for launch of

Nano and there are overall thousands of suppliers toTATA Motors.

SWOT ANALYSIS

STRENGTH- Main strength of Nano over its competitors was price which created

sensation all over the world. Even US president Obama was all praises for the Nano

during his Indian visit, an appreciation which soon spread across the world. Its main

strengths were small size, ease in handling and great mileage efficiency. It has

affected motorcycle market a lot because it gives a feeling of higher status. Thus they

get a four wheeler instead of a two wheeler.

WEAKNESS The main priority itself acted as a major drawback for Nano. The

launch price came in two variants ranging between 1.2 lacs to 1.5lacs. It was 20 50% higher then the proposed rates which was a major setback to customers. After

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few months of the initial sales, technical problems were found which lead to the

weakness of the trust of brand Nano. Tata also faced political problems and had to

shift the plant location which led to production delays. And now due to inflation,

Nanos prices have further increased due to increase in the prices of raw material such

as steel, rubber and others.

OPPORTUNITIESThough Nano is considered to be a boon for middle class people

,it is most often bought by the people who already own one or two cars!! Nano is

considered to be a vehicle of convenience to drive in metro traffic. Nano 2012 is a

new ray of hope in increasing number of sales and making many satisfied customers.

The increase in buying power of the younger generation is a major factor for Indias

automobile growth. Tata Nano diesel priced at 3.5lacs has already created a hype

among its customers as Tata is known for its diesel products with high mileage

efficiency like Indica and Indigo CS. Even Rata tata has admitted that they werewrong in thepositioningof the Nano and that the initial marketing effort was poor.

Instead Nano should have been marketed as a utility car

rather than a cheap car.

Many manufacturers are still striving hard to compete with Nano, even they will have

many drawbacks and failures and it should be a better product than Nano. Certainly

revolutions arent usually neat and tidy to start with; hence Nano too is a revolution in

Indian Automobile history.

THREATS - After the launch of Nano there were many manufacturers who wanted

to take advantage of the hype of the Tata nano, and started working on manufacturing

an alternative for Nano. Upcoming cars like H800 from Hyundai priced around 1.6

lac, Maruti Cervo 600cc priced around 1.7 lacs to 2lacs were imposing threats to

further growth of Nanos market share. Vehicles like Alto, Chevy Spark and second

hand vehicles were major substitutes for Nano. People were looking for alternatives

for the main reason that it cannot be much used for driving in highways or long

distances as the engine cc is low. The main threat was from an indirect competitor

Motorcycles. Nano was in between motorcycles and car and it was proving to beunreliable due to technical glitches. Thus some people were going for the cost

effective solution of buying motorcycles thereby affecting Nano sales.

MARKETING MIX

PRODUCT- Tata is into a diversified range of products in its car segments from passengerscars to heavy trucks, defence vehicles etc. Nano is the cheapest car which has been launchedin India so far. This car gained a lot of attention all over world due to its such a low price.

Some facts about Tata Nano are:-

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-engine, fourpassenger ,city car built by Tata Motors,

in New Delhi, India.

PRICENano was a car which was affordable by major part of population of India. It wasspecially emphasized for the middle class people who would be shifting from two wheeler tothree wheeler with Nano.

Nano followed the following pricing policy:-

cy with minimum profit margin.

people which fixed that range. This expectation of people creates a big challenge for thecompany.

PLACE - Tata Motors has an extensive dealer network covering Indian and Internationalmarkets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you.The channel of distribution, physical location, and dealership method of distribution and salesis generally adopted. The distribution of vehicle must be in a very systematic way, from the

plant to dealership and to end user. This is not only in India itself but also to the world-widedealership.

PROMOTIONTatahas always emphasised on its after sale services via advertising

necessity of other promotional devices for nano.

Objective of study

We are going through a study for identifying The customers attitude towards TATA

NANO. Why TATA NANO was not able to leave mark on Targeted customers heart, what

were the constraints which lead to downfall in the estimated sales for the much awaitedFamily Gift.

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Approach to the problem:

We selected the Questionnaire survey for the course of action, to get the new ideas and

insights about the perception of the people. We targeted the young executives as they are the

key potential buyers of Nano. We decided to go for a closed ended questionnaire with arating scale ( in most questions) so that it become easy for both the respondents and us to

administer it and easily tabulate and analyse it. We also pre-tested it two within the group so,

as to make the questions error-free and accurate so that it can reveal relevant and accurate

information that we require to analyse the problem.

Research Design:

A research design is a framework or blueprint for conducting the marketing research project,

in our project we would go for conclusive research design.

We adopted conclusive research design because we wanted detailed information.

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For secondary data analysis we referred to the websites of Tata nano and some famous blogs

and interviews.

We went for the questionnaire survey as that is the most effective.

The sampling method which we used was non-profitability sampling method.

Our sample size is 100 in the area of Greater Noida.

Research techniques:

Some of the Survey Methods which we will use are:

Telephonic interviewing

Electronic interviewing

Data Analysis:

In this we would be using Graphs and pie charts to make the questionnaire more clearer.We

have received responses from 100 respondants out of which 69.6% were male and 30.4%

were females and out of these 100 respondants 56.92% were married and 43.8% were

unmarried.

Here is our Quessionnarie:

Do you own a car?

Yes 40.4

No 59.6

When we started this project the first question whichcomes in our mind after going through the result of

40.4

59.6

yes

no

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secondary research was how much percentage of people

do have cars,so we propose our first question,do you own

a car,the response which we got was 40.4% respondants

do have cars but still 69.6% of respondants do not have a

car and out of these 59.6%,72% of people are from middle

income group and they do not have a car so there is a huge

potential in this low price segment,so what tata can do,as

tata is the most trusted brand in India and the Indian

customers specially the middle class,they know tata as a

synonym of trust, so tata can take advantage of this trust

and according to the datas which we have received the

higher share of untapped market is the middle income

group so it is the big opportunity for tata the grab the

market share as well as increase the brand value.

Which type of car do u prefer?

small 23.90

luxury 28.3

sedan 21.7

SUV 26.1

We can clearly see that 23.9% people prefer small cars,28.3% people luxury cars,21.7%

people prefer sedan car and 26.1% people SUV cars

small

luxury

sedan

SUV

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Intead of purchasing a bike,will you prefer to go for the nano?

yes 38.3

no 33.2

cant say 8.5

Instead of bike 38.3% people arepreffering nano,which is a very

good thing and there is a hugemarket for nano.

What do you like about nano?

design 26.1

milage 32.6

power 0

performance 6.5

service 10.9

others 23.9

38.3

33.2

8.5

yes

no

cant say

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We can see from the data that mileage and design are quite good for nano but as we can see

that power is 0% so we need to rectify it .

do you think nano is a people's car?

Yes 43.5

No 30.4

cant say 26.1

43.5% people feel that yes nano is a peoples car which is a very good sign for future growth

of nano.

Will you recommend nano to your friends and relatives?

yes 45.7

no 43.5

cant say 10.9

26.1

32.6

0

6.5

10.9

23.9 design

milage

power

performance

service

others

43.5

30.4

26.1

yes

no

cant say

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45.7% are saying that they will recommend their relatives or friends to buy nano as a new

car.

Which small cars do you prefer to buy?

maruti 800 8.5

nano 25.5

eon 40.4

others 25.5

45.7

43.5

10.9

yes

no

cant

8.5

25.5

40.4

25.5

maruti 800

nano

eon

others

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We can see from the data that eon is preferred by more than 40% people so tata needs to do

something about its competitor so that it can increase its sales and improve its position in the

eyes of the customers.

can you trust nano for safety?

yes 17

no 61.7

cant say 21.3

Only 17% people trust nano for safety which is a cause of concern and proper measures need

to be taken to rectify it.

Budgeting the project:

Budgeting and scheduling help to ensure that the marketing research project is completed

within the available resources-financial, time another.

We will use CPM(critical path method) approach which will enable us dividing the research

project into component activities, determining the sequence of those activities and estimating

the time required for each activity.

Our estimated budget is expected to be 30000 and estimated time for the research will be 20

days.

Conclusion:

From this study, we can find that from the total of 100 Respondents interviewed

25.5 respondents would like to prefer this car. From this result, we can conclude

yes

no

cant say

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that generally people whose income is more than Rs. 45,000 they do not prefer to

purchase Nano Car and the people whose income is below Rs.10,000 generally

they already possess vehicle and they dont want to replace it because as a

financial condition Car is not preferred and neither they want to purchase Nano Car.

Another main concern for Nano is safety, 61.7% people are very much concerned aboutsafety and they think Nano is not safe enough for their ride.

Bibliography:

www.tatanano.com

naresh malohatra