THE PEOPLE’S CAR PRESENTED BY : DHIRENDRA SUMAN MONIKA THACKAR DEEPESH SETHI GAGAN BAZWA
Jan 14, 2015
THE PEOPLE’S CAR
PRESENTED BY :DHIRENDRA SUMAN
MONIKA THACKARDEEPESH SETHIGAGAN BAZWA
• India's record in road deaths has touched a new low, as toll rose to at least 14 deaths per
hour in 2008 against 13 the previous year.
While the toll was only 84,430 in 2003, it crossed 1.18 lakh in 2008,
In fact, 4.69 lakh people were injured in road accidents in 2008, nearly four times the total
death toll.
While trucks/lorries and two-wheelers were responsible for over 40% deaths.
DREAM OF RATAN TATA
NANO
The People’s Car
VISION
INTRODUCTIONThe Tata Nano was introduced at the 9th auto expo by Tata
Motors in New Delhi, India on Jan. 10, 2008.
Car delivery to customers started in July, 2009.
Tata Nano is made for medium class family, it is Small, affordable and Stylish Car.
The car itself is expected to boost the Indian Economy as well as expand the Indian car market by 65%, according to rating
agency CRISIL.
MARKET POTENTIAL
1. GEOGRAPHYICAL2. FAMILY SIZE
3. DEMOGRAPHICAL4. INFRASTRUCTURE
MARKET
• India's car market is a huge draw because car penetration is just seven per 1,000 people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according to the Society of Indian Automobiles.
MARKET REPORT
CONCENTRATE ON TIER II & TIER III CITIES
Source : MGI report
Source : MGI report
Source : MGI report
Source : MGI report
The middle class segment in boomtowns by 2016
LOW IN-
COMEASPIRANTS MIDDLE
CLASS HIGH INCOME
02000400060008000
10000120001400016000
2007-08
2015-16
2007-082015-16
Source: Marketing White Book ‘09
More than half of the households will be middle class by 2016
1998-99 2001-02 2004-05 2007-08 2015-160%
10%20%30%40%50%60%70%80%90%
100%
Chart Title
high incomemiddle classaspirantslow income
Source: Marketing White Book ‘09
Automotive Component Manufacturers Association of India (ACMA)
Automotive Component Manufacturers Association of India (ACMA)
Automotive Component Manufacturers Association of India (ACMA)
Automotive Component Manufacturers Association of India (ACMA)
Automotive Component Manufacturers Association of India (ACMA)
JD POWER Report
- 23rd SEPTEMBER,2010
‘ROADS’ TO SUCCESS » » » »
(SOURCE: GOVERNMENT OF INDIA,MINISTRY OF ROAD TRANSPORT & HIGHWAYS,2008-09)
‘ROADS’ TO SUCCESS » » » »
(SOURCE: GOVERNMENT OF INDIA,MINISTRY OF ROAD TRANSPORT & HIGHWAYS,2008-09)
SWOT ANALYSIS
• Low Price & Stylish• High fuel efficiency• Space-Internal-21%
more than Maruti- 800 External-8% less than M-800
• Tested successfully
• Less Boot space• No Headlight
levellers• Not fit for hilly
terrain• Small Tyre• No passenger side
mirror
• Created a Niche market
• Diesel & Electric variant
• Royalty
• Developing low price engine
• Auto Finance
• Create Employment
• New competitor – Bajaj, Cheery, Honda Siel, GM etc.
• REVA an electric car.• Traffic congestion.• Government may
increase taxes in metros.
• Rising cost of raw material.
• Reducing Parking Space.
Strength Weakness
Opportunity Threat
STRATEGICFRAMEWORK
PRICING STRATEGY Though the one lakh price tag was not fixed by
TATA group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company. To accept this challenge the following strategies are followed:-
– Target costing method– Penetration pricing– Low pricing policy with minimum profit margin.
WHAT MAKES IT SO CHEAP
PERSONALIZATION
• Tata launched two special editions of Nano at Auto Expo 2010
• Called “Nano for him” & “Nano for her”.
“Nano for her" comes with decorated
interiors – cocktail red spilled over dashboard, seats and central console. Exteriors too get floral pattern to lure the fair sex.
“Nano for him" is available in an exclusive
wild lime colour shade. It also gets leather seats and door pads.
TARGETMARKET SEGMENT
TARGET MARKET SEGMENT
• Two wheeler market.(nearly 75% of Indian population travels on two wheeler)
• Second car user.
• Middle and lower income group people.
CONSUMER SEGMENTATIONURBAN & SEMI-URBAN AREA:-
•SEC-A•SEC-BWhich
Which Is Shown In This Table:-
Economic status SEC-A SEC-B SEC-C SEC-D SEC-E
Average Monthly Household Income
18549 10911 6776 5112 4219
SEGMENTATION CONTINUED…………
• Segmentation In Different SEC’S is Shown in this Graph:-
SEC-A SEC-B SEC-C SEC-D SEC-E0%
10%20%30%40%50%60%70%80%90%
100%
upto 1250012500-2500025000 Above
URBAN INDIAN CONSUMER PYRAMID
Sec-aSec-b105 million30%
Sec-c79 million 23%
Sec-dSec-e159 million47%
Contd……………
• Target Area is sec-a & sec-b (a) More people in between income 12500-
25000 (b)SPENDING ON PUBLIC CONVEYENCE: (i) sec-a=13% (ii) sec-b=12%
DEMOGRAPHIC ANALYSIS
• PROFESSION BASIS• AGE BASIS• GENDER BASIS
PROFESSION BASIS
AGE BASIS
GENDER BASIS
Competitive Analysis
•Maruti 800;with almost equal features to nano
•Maruti Alto(std):2.60lakh and 1 year warranty and 3 free service. Under true value initiative you can get your old car
exchanged.•Bikes: Price between (50000-80000) with engine capacity between (120cc-
220cc)
Nano Vs Maruti 800
TECHNICAL SPECIFICATIONDESCRIPTION TATA NANO MARUTI 800
LENGTH 3100mm 3335mm
BREADTH 1500mm 1440mm
HEIGHT 1600mm 1500mm
WHEELBASE 2230mm 2175mm
ENGINE 624cc; 2 Cylinder 796cc; 3 cylinder
MILEAGE 20kmpl 15kmpl
WEIGHT 600kg 650kg
Nearest Domestic Car Rival:
Maruti 800, Reva, Oreva Super
Nearest International Rival:
China's Cherry QQ which retails for 3,600 dollars.
Petrol Engine2 cylinder petrol all aluminium Engine
624 ccBosch multi-point fuel injection (mpfi)
VariantsModels Ex-showroom
prices
Nano Standard Rs 1,23,360Nano Deluxe-Cx Rs 1,51,360Nano luxury-Lx Rs 1,72,360
Diesel Engine
Jointly developed with Diesel Engine specialist FEV 684 cc
Smallest Common Rail Turbocharged Diesel engine
Engine Options – Petrol, Diesel, Electric.
Vehicle Summary
Body Type Hatchback
Seating Capacity 4
Transmission 4 Speed Manual
Suspension McPherson strut & Independent coil spring
Brakes Front Disk, Rear Drum
Kerb Weight 580 Kgs
Fuel Tank 30 Liters
Ground Clearance 180 mm
Wheels 12 inch
CREATING AND SOURCING NEW CAPABILITIES
• Various companies reached out for making the world’s cheapest car:
• Germany’s Bosch – new engine management system• Italy’s I.DE.A. – styling n interior deign• India’s Sona Koyo – light weight steering shaft• Japan’s Toyo – engine cooling module• Germany’s Behr – heating, ventilating & air – conditioning
system.• India’s Madras rubber factory – tougher than normal rear
tires
SAFETY
Car exceeds current regulatory requirements with a strong passenger compartment, crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.
CRASH TEST OF ‘NANO’
CRASH TEST OF ‘CHERRY’
SALESPROMOTIONS
PROMOTIONS
* Enough use of one of the most important element of promotion mix , publicity reduces the necessity of other promotional devices for nano. Nano got publicity in the following ways:-
* Publicity as “One lakh car” by word of mouth.
* Auto expo 2008,New Delhi & Geneva.
* Publicity through print & electronic media.
* Internet will be a major media for advertising.
PROMOTIONS
Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online .
Social Media communities:-Official Orkut community Members – 11,448 Official Facebook Group Fans – 9,191
Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing this post) No. of Blog Posts - 61,664 TATA has a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community
WEBSITE OF ‘NANO’
NANO - GEARS
PROMOTIONS
PROMOTIONS
SOCIAL MEDIA
DISTRIBUTIONTATA, it’s business has been extended to the
overseas i.e. to the Europe, Africa, U.S & Australia.
Hence it has large number of showrooms in India & outside of India.
The exclusive showrooms are the best distribution channels for TATA itself.
SERVICE MIXAs Tata is going to provide this car with rupees one lakh only, so it may not give the same service like it’s other vehicles.
But it’s post purchase services will be better than a costlier bike.
Customers will get minimum three services from Tata in any of it’s servicing center, all over the country.
OUR SELLING STRATEGY Awareness campaign through advt.
tools, projecting as VALUE ADDED PRODUCT (more mileage,safety,easy to buy, very convenient to drive).
Persuasive advertisement justifying switching over to 4 wheeler from 2 wheeler (considering safety at a low cost and non affordable medical expenses in case of an accident i.e. 2wheeler are more prone to accident).
Target middle & lower middle cost, income ranging 2 lakhs - 4 lakhs per annum
NICHE
HIGHER CLASS
UPPER MIDDLE CLASS
MIDDLE CLASS
FUTURE MARKET Can be used in hotels as a pick n drop
vehicle.
Parents can be encouraged to provide their children with nano instead of 2- wheelers, to ensure safety.
Project Nano as pollution free & environment friendly
Strike a deal with builders & colonisers like Eldico ,DLF , Sahara etc. to give Nano to each flat buyer because small cost of Nano can be easily absorbed in huge cost of property & thus making the flat purchase more attractive
FUTURE MARKET- ‘nano taxi’
REACTIONS ABOUT NANO• "It's a good historic moment for the Indian auto
industry and also a proud one indeed that an Indian company took a step forward on this road. Its an up gradation for an auto wheeler rider to by a car now.“
Rajesh Jejurikar, Managing Director, Mahindra and Renault's.
• "It's good product but it's still too early to say whether it will overtake the 800 because it caters to a totally new market segment.”
Said Jagdish Khattar, Former MD of Maruti Udyog Limited
REACTIONS ABOUT NANO"Meeting the proper quality standards and safety is not
feasible at all in such a model.Andreas Prinz, Managing Director (Passenger Cars), Volkswagen Group Sales India.
"I think it is a great thing for India because mobility is giving new opportunities. I hope Tata drives to great success with the Rs one lakh car, but it is not included in our plan.“
• Thomas Kuehl, Board Member, Skoda Auto India.
AWARDS
THANK YOU