PREFACE
AProject Study ReportOn
New Product Development With
Tata Nano
And
Comparative Study on Maruti Suzuki Alto 800
Submitted to RTU, Kota in partial fulfillment for the Award of
degree ofMaster of Business Administration
Submitted To: -Submitted By: - Dr.PANKAJ GUPTADIWAKAR
PALIWALFaculty Guide MBA IVSEM. 2011- 2013
APEX INSTITUTE OF MANAGEMENT & SCIENCE, JAIPUR(Approved by
AICTE, New Delhi & Affiliated to Rajasthan Technical
University, Kota)
PREFACE
This is the specialization project on a study onNEW PRODUCT
DEVELOPMENT WITH TATA NANO AND COMPARATIVE SYUDY ON MARUTI SUZUKI
ALTO 800 The objective of this study is to gain knowledge about how
Tata brought this new product i.e., Nano up to the development
stage and finally going to launch it on 23rd of March.During the
project I researched on how Tata developed Nano costing Rs 1 lakh
and what will be its effects. This study also includes comparison
between Tata Nano and Maruti Suzuki Alto 800. A survey was also
done for understanding consumer buying pattern and preferences.
Thus, this study is based on new product development in
marketing for Tata Nano.
ACKNOWLEDGEMENT
Such Thanks I give as near death to those that wish him Live -
Shakespeare A formal statement of acknowledgement will hardly meet
the ends of justice in the matter of expressing my deep sense of
gratitude and obligation to all those who helped me in the
completion of this project report.
I express gratitude to various faculty members
especiallyDr.Pankaj Gupta for his valuable guidance which was a
good learning experience in order to make my efforts
successful.Special, continual assistance while collecting the data
was provided by the respondents. I wish to acknowledge my special
thanks to them for their help and cooperation in order to complete
this project.I am also thankful to those who have helped me
intellectually in preparation of this project directly or
indirectly.I am deeply indebted to the various sources of
information from relevant sites from internet and books and
newspapers which helped me a lot in my study and helped me to learn
a lot.
(Signature of student)
DIWAKAR PALIWALMBA IV SEM.
Table of contents:
Sr. No.SubjectPg. No
1Introduction to Automobile industry in India5
2Introduction to the subject new product development 13
3Introduction to Tata Nano 22
4 Tata Nano and new product development 27
5Upcoming Variant Of Tata Nano In 201338
6Some myths about Nano 46
7Comparison between Nano and Maruti Suzuki Alto 80049
8Research Methodology 64
9Data collection method& interpretation 70
10Some feedback about Nano 91
11Conclusion 93
12Bibliography 101
Introduction to Automobile industry in India
Introduction to Automobile industry in India
The automotive industry in India is one of the larger markets in
the world and had previously been one of the fastest growing
globally, but is now seeing flat or negative growth rates.India's
passenger car and commercial vehicle manufacturing industry is the
sixth largest in the world, with an annual production of more than
3.9 million units in 2011.According to recent reports, India
overtook Brazil and became the sixth largest passenger vehicle
producer in the world (beating such old and new auto makers as
Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain,
France, Brazil), grew 16 to 18 per cent to sell around three
million units in the course of 2011-12.In 2009, India emerged as
Asia's fourth largest exporter of passenger cars, behind Japan,
South Korea, and Thailand. In 2010, India beat Thailand to become
Asia's third largest exporter of passenger cars.As of 2010, India
is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of
33.9%), making the country the second (after China) fastest growing
automobile market in the world in that year. According to the
Society of Indian Automobile Manufacturers, annual vehicle sales
are projected to increase to 4 million by 2015, no longer 5 million
as previously projected.The majority of India's car manufacturing
industry is based around three clusters in the south, west and
north. The southern cluster consisting of Chennai is the biggest
with 35% of the revenue share. The western hub near Mumbai and Pune
contributes to 33% of the market and the northern cluster around
the National Capital Region contributes 32%. Chennai, with the
India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan,
BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is
about to begin their operations by 2014. Chennai accounts for 60%
of the country's automotive exports. Gurgaon and Manesar in Haryana
form the northern cluster where the country's largest car
manufacturer, Maruti Suzuki, is based. The Chaka corridor near
Pune, Maharashtra is the western cluster with companies like
General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force
Motors having assembly plants in the area. Nashik has a major base
of Mahindra & Mahindra with a UV assembly unit and an Engine
assembly unit. Aurangabad with Audi, Skoda and Volkswagen also
forms part of the western cluster. Another emerging cluster is in
the state of Gujarat with manufacturing facility of General Motors
in Halol and further planned for Tata Nano at their plant inSanand.
Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come
up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and
Bangalore with Toyota are some of the other automotive
manufacturing regions The first car ran on India's roads in 1897.
Until the 1930s, cars were imported directly, but in very small
numbers.An embryonic automotive industry emerged in India in the
1940s. Mahindra & Mahindra was established by two brothers as a
trading company in 1945, and began assembly of Jeep CJ-3A utility
vehicles. Following the independence, in 1947, the Government of
India and the private sector launched efforts to create an
automotive component manufacturing industry to supply to the
automobile industry. However, the growth was relatively slow in the
1950s and 1960s due to nationalization and the license raj which
hampered the Indian private sector. Total restrictions for import
of vehicles were set and after 1970 the automotive industry started
to grow, but the growth was mainly driven by tractors, commercial
vehicles and scooters. Cars were still a major luxury. Eventually
multinational automakers, such as, though not limited to, Suzuki
and Toyota of Japan and Hyundai of South Korea, were allowed to
invest in the Indian market around the country. Ultimately leading
to the establishment of an automotive industry in India. A number
of foreign firms also initiated joint ventures with Indian
companies.On 03-18-23 global brands such as Proton Holdings, PSA
Group, and Geely Holding Group are shelving plans for India do to
the global economic crisis.
Emission normsIn tune with international standards to reduce
vehicular pollution, the central government unveiled the standards
titled 'India 2000' in 2000 with later upgraded guidelines as
'Bharat Stage'. These standards are quite similar to the more
stringent European standards and have been traditionally
implemented in a phased manner, with the latest upgrade getting
implemented in 13 cities and later, in the rest of the nation.
Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad,
Ahmadabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra are the
13 cities where Bharat Stage IV has been imposed while the rest of
the nation is still under Bharat Stage III.Exports
Mahindra Scorpio Jeep in service with the Italy's CNSAS.
India's automobile exports have grown consistently and reached
$4.5 billion in 2009, with United Kingdom being India's largest
export market followed by Italy, Germany, Netherlands and South
Africa. India's automobile exports are expected to cross $12
billion by 2014.According to New York Times, India's strong
engineering base and expertise in the manufacturing of low-cost,
fuel-efficient cars has resulted in the expansion of manufacturing
facilities of several automobile companies like Hyundai, Nissan,
Toyota, Volkswagen and Maruti Suzuki.In 2008, South Korean
multinational Hyundai Motors alone exported 240,000 cars made in
India. Nissan Motors plans to export 250,000 vehicles manufactured
in its India plant by 2011.Similarly, USautomobile company, General
Motors announced its plans to export about 50,000 cars manufactured
in India by 2011.In September 2009, Ford Motors announced its plans
to set up a plant in India with an annual capacity of 250,000 cars
for US$500 million. The cars will be manufactured both for the
Indian market and for export. The company said that the plant was a
part of its plan to make India the hub for its global production
business. Fiat Motors also announced that it would source more than
US$1 billion worth auto components from India.
A Tata Safari on display in Poznan, Poland.In July 2010, The
Economic Times reported that PSA Peugeot Citron was planning to
re-enter the Indian market and open a production plant in Andhra
Pradesh with an annual capacity of 100,000 vehicles, investing EUR
700M in the operation. PSA's intention to utilize this production
facility for export purposes however remains unclear as of December
2010. In 2009 India (0.23m) surpassed China (0.16m) as Asia's
fourth largest exporter of cars after Japan (1.77m), Korea (1.12m)
and Thailand (0.26m) by allowing foreign carmakers 100% ownership
of factories in India, which China does not allow.
The Maruti Ertiga, a model exported by Maruti Suzuki India.In
recent years, India has emerged as a leading center for the
manufacture of small cars. Hyundai, the biggest exporter from the
country, now ships more than 250,000 cars annually from India.
Apart from Maruti Exports' shipments to Suzuki's other markets,
Maruti Suzuki also manufactures small cars for Nissan, which sells
them in Europe. Nissan will also export small cars from its new
Indian assembly line. Tata Motors exports its passenger vehicles to
Asian and African markets, and is in preparation to launch electric
vehicles in Europe in 2010. The firm is also planning to launch an
electric version of its low-cost car the Tata Nano in Europe and in
the U.S. Mahindra & Mahindra is preparing to introduce its
pickup trucks and small SUV models in the U.S. market. Bajaj Auto
is designing a low-cost car for Renault Nissan Automotive India,
which will market the product worldwide. Renault Nissan may also
join domestic commercial vehicle manufacturer Ashok Leyland in
another small car project. While the possibilities are impressive,
there are challenges that could thwart future growth of the Indian
automobile industry. Since the demand for automobiles in recent
years is directly linked to overall economic expansion and rising
personal incomes, industry growth will slow if the economy
weakens.Top 20 export destinations in 2007-2008 and growth from
previous yearRankCountry2007-2008 (in USD Millions)2008-2009 (in
USD Millions)Percentage Growth
1United States of America593.64525.24-11.52
2Italy332.35359.688.22
3Sri Lanka249.14216.11-13.26
4South Africa224.93188.57-15.79
5United Kingdom165.57246.3248.77
6United Arab Emirates164.44192.7417.21
7Algeria147.34265.6380.28
8Bangladesh137.26164.8620.11
9Egypt134.43143.545.99
10Germany133.52409.63206.8
11Colombia118.88120.711.54
12Nepal111.3398.13-11.86
13Mexico93.8094.100.32
14Turkey83.5373.82-11.63
15Spain81.0156.96-29.69
16France76.77134.2174.83
17Nigeria66.01148.74125.03
18Greece65.75127.6394.1
19Netherland65.19163.66151.05
20Ghana59.9138.30-36.07
Passenger vehicles in IndiaThis list is of cars that are
officially available and serviced in India. While other cars can be
imported to the country at a steep 105% import duty, car-makers
such as Romeo, McLaren, Pagani, Cadillac, Chrysler, SSC,Zenvo,
SEAT, Smart,Daihatsu, Lexus, Infiniti, Acura, Saab, Spyker, Lotus,
Ariel, Caterham,Peugeot-Citron, Mazda, Jeep, SsangYong, Kia,GAZ and
Proton are in varying stages of official introduction to the Indian
automobile market.Electric vehicle and Hybrid vehicle (xEV)
industryDuring April 2012 Indian Government has planned to unveil
the roadmap for the development of the domestic electric and hybrid
vehicles (xEV) in the country. A discussion between the various
stakeholders including Government, industry and the academia is
expected to take place during 2324 February. The final contours of
the policy will be formed after this set of discussions. Ministries
such as Petroleum, Finance, Road Transport and Power are involved
in developing a broad framework for the sector. Along with these
ministries big auto industry names such as MrAnand Mahindra (Vice
Chairman and Managing Director, Mahindra & Mahindra) and
MrVikramKirloskar (Vice-Chairman, Toyota Kirloskar) are also
involved in this task. Government has also proposed to set up an Rs
740 crore R&D fund for the sector in the 12th five year plan
during 2012 The idea is to reduce the high cost of key imported
components such as the battery and electric motor and develop such
capabilities locally.
Introduction to the subject new product development
Introduction To New Product Development
Meaning Of Product:
E.g.:- milk, computer, shoes, service after sales, railway
services etc. a product can be divided into two categories Tangible
goods Intangible goodsTangible products are known as goods that can
be touched, felt and seen. E.g.:- computer, mobile phone
etcIntangible products are known as services that cannot be touched
and seen as the customer can feel and experience only after
utilizing it. E.g.:- service after salesNew Product
Development:
A product can be considered new under the following situations:-
New-to-the-world products New product lines Additions to existing
product lines Improvements and revisions of existing products
Repositioning Cost reductions
Stages Of New Product Development
Before the introduction of a product into the market, it goes
through several stages of development. These stages are known as
stages of new product development. It includes the following:
Idea Generation:Companies seek new ideas to enhance the
performance of the existing products and to innovate new ideas.
This stage is called idea generation stage. There are many sources
for idea generation. It may be from customers, dealers
etc.Employees throughout the company can also be a source of idea.
Toyota claims that its employees submit two million ideas annually
over 85% of which are implemented.Companies also find good ideas by
researching competitors products and services. They can find out
what the customers like or dislike about their competitors
products. Ideas can also come from investors. External research,
surveys industrial publications research and development etc.But
the main source of idea generation is the customers by their
grievances and complains and feedback. However, although ideas can
flow from many sources, it is not feasible to implement all the
ideas generated due to lack of time and capital.
Idea ScreeningThe main purpose of idea generation is to collect
a larger number of ideas. However, not all ideas can be
commercially viable. Therefore, the companies filter the less
viable ideas with the help of systematic process. Companies can use
various parameters to screen the ideas such as market size,
technical capabilities, potential competition etc.Addressing the
following issues will also help the companies to analysis the
attractiveness of ideas. Whether the product idea match the
existing products of the company. The degree to which the new
product can cannibalize the sale of the existing product. Companys
ability to produce and market the product. Buying behavior and the
probable changes in the environment.While screening the ideas, an
organization may commit two types or errors.Drop error where the
firm rejects a very good idea.Cro error where a company selects a
poor idea.
Concept Testing And Development:All ideas that survive in the
process of screening will be studied in details. They will be
developed into mature products. At this stage, the idea is
submitted for the external evaluation to get a feedback from the
market. It helps a firm are organization to collect important
information like customers initial reactions towards the product
development. During this stage, new product idea is described in
the form of one or more benefit that is then presented to a sample
of potential customers for their reactions.
Marketing Strategy:Following a successful concept test, the new
product manager will develop a preliminary strategy plan for
introducing new product in the market. The plan consists of three
parts. The first part describes the target market size, structure
and behavior for the first few years. The second part outlines the
planned price distribution strategy and marketing budget for the
1st year. The third part of marketing strategy plan describes the
long run sales and profit goals and the marketing mix strategy over
time.
Business Analyses.After management develops the product concept
and market strategy, it can evaluate the business attractiveness.
Business analyses are the first in-depth financial evaluation of
new product to be developed. Here management needs to prepare sales
cost and profit projections to determine whether they satisfy
company objectives. If they do, then concept can move to the
development stage. SOWT analysis will be conducted at this stage by
the organization. It also includes the following:
Total sales estimation:-These are the sum of estimated first-
time sales, replacement sales and repeat sales. Its method depends
upon whether the product is one time purchase(an engagement ring),
an infrequently purchased products like toaster, auto mobile etc.
or a frequently purchased products like consumer and industrial non
durables.
Estimation costs and profits.The R&D, manufacturing,
marketing and financial departments estimates the costs. The
profitability of the new product is estimated through various
financial tools. The simplest technique is the breakeven analysis
in which the management estimates how many units of the product the
company would have to sell to break even with the given price and
cost structure. If the management believes that sales could easily
reach the break even number, it is likely to move the project into
development stage.
Product DevelopmentIn this stage, detailed technical analysis is
conducted to know whether the product produced at costs is low
enough to make the final price attractive to the customer.Here a
working model or a prototype is developed to disclose all tangible
and intangible attributes of the product. A product protocol is
prepared which is a detailed downiest containing the important
attributes that are expected in the product. Once the protocol has
been developed, it is handed over to the research the development
department to develop the prototype of the product.
Test Marketing:The test marketing is the stage where the product
is introduced in a few selected cities. During this stage, the
company has to fate the following expense: High advertisement High
manufacturing cost. High distribution cost etc.For testing the
product, marketer needs to make the decision on the following
issues. The no. of cities in which the product is to be tested.
Geographic location of the cities. Time to carry ort test
marketing.
Through this exercise, company can know the customers response,
feedback, suggestions, complaints and any other changes required to
be done for product modification.After successfully laughing the
product in selected cities the company launches the new product in
all other cities.
There are certain methods of product testing.Alpha TestingIn
this method, a group of target audience is selected from the
employees of the company.Beta Testing:It is carried out at the
customers site. Generally, it is applicable for industrial products
where the customization takes place.Gamma Testing:It is carried out
on a long term basis where the customers uses the product
extensively and gives response after a long period of time. Say six
months.
Commercialization:The results of the test marketing help
marketers to decide the changes that are needed in the marketing
mix before entering into the market. It also helps the marketer to
decide the amount of production distribution strategy, selling
efforts and other issue like providing guarantees, service after
sales etc. the product enters the market during the
commercialization stage.Introduction To Tata Motors: Tata Motors
was established in 1945, when the company began making trains. It
has its manufacturing base in Jamshedpur, Lucknow, Pune and soon
one more plant established at Singur, West Bengal. Product
Manufactured - Passenger Cars and commercial vehicle Installed
Capacity - 350,000-400,000 vehicles a year Investment - Rs 2,500
crore (Rs 25 billion) Turnover - $21.9 billion (Rs 967,229 million)
Employees - 2,46,000/22001 Tata Motors had created the wealth Rs.
320 billion during 2001-2006 and stood among top 10 wealth creators
in India.
Introduction to Tata Nano
Tata Nano - ONE LAKH CAR PROJECT Peoples Car
A promise is a promise, said Rattan Tata, Chairman, Tata Motors,
on 10th January, 2008, when the Nano was first displayed at the
Auto Show in Delhi. The Nano project didnt grab the attention of
only Indians; the entire world had their eyes glued to the worlds
cheapest car. A truly Peoples Car, this time is from India. Though
the dealer price is Rs. 1 lakh, the price on road, when it will be
launched, will reach around Rs. 1,25,000 but it will be still more
affordable and will be more eco-friendly than most other cars
giving a mileage of around 23km/liters. The price of the car is
such that a lot of rich and HNIs, if interested, can buy the car
just by a single swipe of their credit cards.Providing a car worth
rupees one lakh car was the dream of the chairman of Tata motors
Mr. Rattan Tata. And with high qualified IT skills people he has
shown the Indian talents to whole the world.
Idea conceived by -Rattan Tata Cost of development - 1700 crores
Manufacturing cost (excluding dealer margin and taxes)- Rs 65,000
per unit Development of Design -India Time for designing the car -4
years Team - A team of 150 engineers , everyone below age 28
Biggest hurdle - To make a car cheap car without Compromising
design
May western countries as well as many foreign countries have
accepted Indian IT skills?
Details Of Nano
Specs:Engine: 624 cc / 33 bhp4 door, 5 seater (and yes 4 Wheeled
too)Rear EngineWeight: 600 kgsMileage - 22-23 km/liter
Variants:StandardDeluxe (with AC)
Future:Diesel And CNG VariantExports outside India or assembly
plants outside
Comparison8% less in length (bumper to bumper) with respect to
Maruti Suzuki Alto 800 21% more in inner space with respect to
Maruti Suzuki Alto 800
Looks:Front side looks more like Matiz (or Spark as we now call
it)Back side looks more like India with those long tail lights.
Insight:People often criticize something that is making waves
everywhere. This has also been the case with Tata Nano.
Competitors, safety regulators, environmentalists and most others
conceived the problems that India will face, when such a car is
available, much before the actuallaunch of the car.
This will result into: OLD GENERATION NEW GENERATION
SOWT Analysis
1 STRENGTH Brand name TATA Cost price low Fuel efficient Safe
OPPORTUNITIES Large market for selling Awareness in the market
First car in low range Can hit in global market
WEAKNESS Low power Not a status symbol Delay in manufacturing
Limited features
THREATS Company rival Not sure to hit in rural and semi-urban
areas
29
Tata Nano and new product development
New Product Development AndNano
As seen before, A product can be considered new under the
following situations:- New-to-the-world products New product lines
Additions to existing product lines Improvements and revisions of
existing products Repositioning Cost reductionsAs far as Nano is
concerned, it falls into new to the world products in the context
that it has made a history for the cheapest car ever made without
compromising on quality. I.e. best way value analysis. It can also
be considered as new product in the since of cost reduction as its
the first time in the history that such a cheap car is produced.The
story of the Nano is not confined to its impact on the auto
industry. It's a tale that illuminates the India of todayan eager,
ambitious nation with a combination of engineering talent, a desire
for low costs and value, and the hunger of young managers looking
to break from a hidebound corporate environment. Indeed, the team
that worked on the Nanoon average aged between 25 and 30has helped
to flatten Tata Motors' stodgy, multilayered management structure,
which has resulted in an unexpected side-benefit called
organizationalinnovation".
Idea Generation AndNanoA dream is born Says, I observed families
riding on two- wheelers -- the father driving the scooter, his
young kid standing in front of him, his wife seated behind him
holding a little baby. Add to that the slippery roads & Night
time too. It is downright dangerous. It led me to wonder whether
one could conceive of a safe, affordable, all-weather form of
transport for such a family. So when Tata Motors needed someone to
take charge of the company's most ambitious plan yet to build the
world's cheapest car ever Ravi Kant, who by then had become the
company's managing director, again turned to Wagh. Wagh remembers
what he learned marketing the little truck. "People want to move
from two-wheelers to four-wheelers," he says. "Today they can't
afford it."More and more can, but Indian car buyers today represent
a tiny slice of a potentially giant market India has just seven
cars per 1,000 people. India's auto industry has grown an average
of 12% for the past decade, but just 1.3 million passenger vehicles
were sold in India in the fiscal year ending March 2006. That means
a billion Indians buy about the same number of cars in a year as
300 million Americans buy in a month.If four wheels cost as little
as two wheels, that could change fast. About 7 million scooters and
motorcycles were sold in India last year, typically for prices
between 30,000 rupees and 70,000 rupees, about $675 to $1,600. Tata
is targeting a price of 100,000 rupees one lakh, in Indian terms of
measurement or about $2,500 at current exchange rates, for its
small car. That sounds impossibly cheap in the West but remains
three times higherthan India's annual per capita income. The
average pay for factory workers at Tata Motors is just $5,500 a
year.
Idea screeningThe next step was the screening of idea. How is
this dream possible? What should they make? A scooter with two
extra wheels at the back for better stability? An Auto-rickshaw
with four wheels? A three wheeled car like a closed auto-
rickshaw?? A four wheeled car made of Engineering Plastics? A Four
wheeled rural car? Rolled up Plastic curtains in place of windows?
Openings like Auto rickshaws from the side A four wheeled open car
with safety side bars?
But the market wanted a car and if they build a peoples car it
should be a car and not something that people would say, Ah! Thats
just a scooter with four wheels or an auto-rickshaw with four
wheels & not really a Car. Trying to build a car cheap enough
for motorcycle buyers seems to make sense now but seemed crazy
several years ago when Rattan Tata, longtime chairman of Tata
Motors and scion of the nation's giant Tata Group conglomerate,
first mentioned his dream of building a one-lakh car in 2003. "They
are still saying it can't be done," he says, insisting that it can
and will. "Everybody is talking of small cars as $5,000 or $7,000.
After we get done with it, there will hopefully be a new definition
of low-cost."
Concept Testing And DevelopingBefore starting the project, Wagh
did something no one at Tata Motors ever had: He talked to
customers. The three-wheeler men inevitably insisted on a cheap,
dependable truck that could go from village to market carrying,
say, a ton of onions or potatoes, one night, as sunset approached,
Wagh stuck with one rickshaw driver. He says, "I kept asking the
question. Why? Why? Why do you want a four-wheeler?" Wagh
remembered. Finally, he got the real answer. It turned out it
wasn't really a problem of transportation of vegetables If I had a
four-wheeler, I would have better marriage prospects in my
village," the young man said. Drivers of three-wheelers are looked
down upon in India. Wagh realized that four wheels had emotional,
not just practical, appeal.Thus the new product was now to be
developed. But what type of product?
The car to cost Rs. 1 lakh on road.
The car should be built on a different platform than
conventional ones. It must be meeting all the safety and regulatory
requirements. It has to be built on a scale which shall be more
than double the earlier launches of similar products and the ramp
up must be smooth. The car has to be designed so that it can be
exported to other countries as the domestic demand may not
materialize as per projections. The car must be a beacon for the
Indian Automobile industry and prove to the world that we are
capable to take any challenge and come out worthy winners.That
quest to build the world's cheapest car hasn't ended. The Nano
should be available this fall, but the mission began back in 2003,
when Rattan Tata, chairman of Tata Motors and the $50 billion Tata
conglomerate, set a challenge to build a "people's car". Tata gave
an engineering team, led by 32-year-old star engineer Garish Wagh,
three requirements for the new vehicle: It should be low-cost,
adhere to regulatory requirements, and achieve performance targets
such as fuel efficiency and acceleration capacity.The design team
initially came up with a vehicle which had bars instead of doors
and plastic flaps to keep out the monsoon rains. It was closer to a
quadricycle than a car, and the first prototype, even a bigger
engine, which boosted the power by nearly 20 per cent, was still
dismal. "It was an embarrassment," says Wagh.But failure didnt stop
them they quickly realized it was necessary to bring everyone on
board, "else it leads to last-minute heartache and delays". Every
morning, he would spend an hour or two on the floor of the Pune
factory, insisting that everyone involveddesigners, manufacturing
teams, and vendor development peoplebe there to accelerate
decision-making and problem-solving.Over time, Wagh's team grew to
comprise some 500 engineers, an impractically large group to gather
on a daily basis. So instead, a core team of five engineers
gathered every day at three pm to discuss the latest developments.
Each engineer represented a different part of the car: engine and
transmission, body, vehicle integration, safety and regulation, and
industrial design. The body had to be changed because Rattan Tata,
over six feet tall himself, wanted it to be easy for tall people to
get in and out of the car. "Imagine the plight of the body
designerhe went through hundreds of iterations, then at the last
minute the car length was increased by 100 millimeters!" Wagh says.
The attention to detail paid off: When the car rolled onto the dais
at the Auto Show in New Delhi in January, and Rattan Tata stepped
out of the driver's seat with ease, it made an immediate impact.
What shook the automobile world most was the fact that the
designers seem to have done the impossible: The sleek,
sophisticated Nano doesn't look flimsy or inexpensive. If it had
been an upgraded scooter on four wheels, Tata still would have been
applauded for making a family of four safer on Indian roads. The
Nano, however, affords both safety and status. "The innovation
wasn't in technology; it was in a mindset change".
Business AnalysisCost Since the car had to be built within a
cost of Rs. 1 Lac, no conventional design would work as the costs
shall be higher and so the entire car has to be redesigned. What
makes Nano so less expensive can be well understood from the
following diagram
The design has to question the need of each and every component
from the point of view of its necessity of existence and also the
minimum requirements of its functionality. Value Engineering
concepts have to be deployed to finalize the minimum
requirements.
Disruptive Technology:Is a Technology that brings radical change
by introducing new ways of doing things usually at a Technology
that is: Significantly cheaper than existing Technology. Is much
higher performing? Has greater functionality and Is more convenient
to Use. Brings to market a totally different Value proposition than
the one available and can change the Paradigm about a product.The
Guiding factor was that the cost has to be minimized for each
component yet maintaining its basic functionality.The Alternatives
are: Reduce Consumption of Material being used. Alternate Suppliers
to get same material at fewer prices. Use alternate materials.
Eliminate use of Material. Eliminate a process Or a Combination of
the above.
The design was outsourced to Italy's Institute of Development in
Automotive Engineering, but Tata himself ordered changes along the
way. Most recently he vetoed the design of the windshield wipers.
His solution: a single wiper instead of two, giving the car a
cleaner look.THE COST REDUCTION PARADIGM Value Engineering
Alternatives:
The target was very clearly defined that within the given cost
structure of 1 Lac all the components have to be allocated a
maximum price and the same had to be achieved using the available
alternatives. The Guiding factor was that the tax structure, on
materials and manufacturing, must support the final cost of Rs. 1
LacThe Decisions were: Establish factory in a tax free zone. Get
the tax advantages on infrastructure development. Get the suppliers
to establish base near the factory. Get special concessions from
State Govt. In short select a manufacturing location where all the
advantages could be achieved. In short select a manufacturing
location where all the advantages could be achieved. Total sales
estimationNow the question was, how much to produce It was
estimated that the demand for the peoples car shall be at least
twice the demand for Maruti 800, the lowest end car. Initial
projections were at about 500 K cars per year. The basic reason was
the conviction that the target price shall redefine the 4 - wheeler
segment. The price decision of Rs 1 lakh is definitely going to
make a lot many people transit to 4-wheeler fold and that shall
explode the demand. F only 10% customers of 9 Million two wheeler
market transit to 4-wheelers it shall amount to 50% of the
passenger car market share. It was decided to set up plants with 5
lacs cars per annum capacity and ramp the same up in stages, in
line with increase in market demand.
The initial response to the Nano has been overwhelming and the
tiny, Noddy-land car is expected to help the company cross several
milestones. With revenues at Rs 1,29,994 crore for the financial
year 2006-7, and group companies enjoying a market capitalization
of Rs 2,51,487 crore as on January 10, 2008, the Tata Group is on a
strong footing, contributing more than 3 per cent to India's GDP.
Nano, being the world's cheapest car, has made international
players sit up in amazement and the company has received proposals
from some African, Latin American and Southeast Asian countries to
manufacture the car there.
Product DevelopmentAnd finally the product was developed with
the following features. Engine Capacity Bosch 624 c.c. twin
cylinder Low capacity, Lighter, sufficient with better Power Rear
Engine to reduce the transmission length using a balancer shaft. 4
Speed Manual Gear Box All Aluminum Engine Higher thermal
conductivity than cast iron, Lighter and so better mileage Engine
Management System by Bosch Superb control over emission and smooth
acceleration. Dimensions L: 3.1m, W: 1.5m, H: 1.6m Less length but
more inner cabin space due to height. Comfortable leg room.
Independent Front & Rear Suspension McPherson Strut in Front
& Coil spring & trailing arm in rear. Better ride than
Maruti Suzuki alto 800. Single piece ribbed steel body with safety
features such as crumple zones, intrusion resistant doors, seat
belts, strong seats & anchorages. Safety requirements are
adequately met. Single Wiper in place of two. Cost effective yet
functionality is met Tube less Tires Weight reduced by 2 Kg. Cost
reductions 200 Rs. And in line with modern vehicles Instrument
console in the centre Elegant to look at and can be used both in
Left Hand & Right hand version. The list goes on and on. The
Final verdict
THE CAR COSTS Rs 1 lac Test Marketing And Commercialization Nano
is soon going to launch by the end of April. It will be
commercialized in whole of India. It is mostly targeted to the
middle class and lower middle class people. The effects of Nano and
its commercialization will be soon known after it comes into the
market.
UPCOMING VARINT OF TATA NANO IN 2013
Tata Nano to get a DIESEL VARIANT-:Tata Nano Diesel is one of
the much awaited cars in the Indian auto market. It is anticipated
that the car will be introduced in 2013 in the hatchback segment.
As per latest updates, the Nano Diesel will have the smallest
diesel power-train in the world, which will set another record in
Nanos history. Post launch, the car will be considered as the most
fuel efficient diesel car in India. It is expected that the Tata
Nano Diesel will hold a CRDI diesel engine from Bosch. The car
maker has not provided much detail regarding the technicalities of
the Nano Diesel.Tata Nano Diesel will be assimilated with a 0.7
litre diesel engine, which will have a displacement of 700 cc. The
maximum power churned out by the engine of this car is 33 bhp,
which is quite acceptable in this segment. In addition, maximum
torque attained by this engine is 51 Nm at 4000 rpm. In order to
assist the mechanism of this car, the engine of Tata Nano is
expected to be assimilated with a four speed manual transmission.
Tata Nano diesel is equipped with a performance oriented engine and
thus it is bound to deliver low emission and a decent fuel economy.
The company has not made any official declaration regarding the
test figures of Tata Nanos fuel economy, but it is expected that
the car will cover a distance of 40 kmpl, which is excellent in
this segment.In order to deliver a hassle free drive to its
passengers, the company has incorporated independent McPherson
Struts, coil spring suspensions in the car. Along with this,
analysts are also expecting revamped suspension system and a power
assisted steering wheel, which are some of the mechanical upgrades
that will be incorporated within the car.Tata Nano Diesel will be
incorporated with improved interiors with up market upholstery. As
per speculations, the car will have better bolstered seats to
provide optimum comforts to its passengers. Tata Nano Diesel will
be provided with sufficient space for the passengers of both the
rows, resulting in a peaceful journey. Four passengers can
comfortably travel in the car. A boot space of 80 liters enhances
the comfort of this small car.Tata Nano Diesel will be almost
identical to the current petrol version of Nano. The length, width
and height of Tatas new car are 3099 mm, 1495 mm and 1652 mm,
respectively. Fuel tank capacity of the car is 30 litres, which is
quite sufficient since its performance oriented engine delivers an
impressive fuel economy. Apart from these advancements, the company
has also made a special provision for the security of its
passengers, and thus the car holds some of the advanced safety
features. The company has offered seat belts in front as well as
rear portion, remote central locking system, fog lamps in front as
well as rear end and door ajar warning system.About Tata Nano
DieselAlmost two years after launching the petrol version of its
small creation Tata Nano in the Indian market, Indian auto giant
Tata Motors is now planning to launch the diesel version of this
car in the country by Sep 2011. The engine capacity of the Nano
Diesel is speculated to be in the range of 600 to 700 cc and the
Nano Diesel will boast the worlds smallest Bosch Common Rail Direct
Injection (CRDi) system.The Tata Nano diesel will be the smallest
diesel run car in the Indian market as so far there are only petrol
run cars available in the starting range segments A (Maruti 800)
and A+ (Maruti Alto). Tata Nano diesel will be the only such car in
the country and will thus create a segment of its own in the Indian
auto market.Fact Sheet:
MakeTata
ModelNano
Fuel TypesDiesel
PriceRs.1.75 lakhs to Rs.2.5 lakhs
Key Specifications0.7 litre CRDI engine of 700 ccMaximum power
produced 33 bhp at 5500 rpm, whereas highest torque attained is 51
Nm at 4000 rpm.
Launch Date of Nano Diesel: Nano Diesel can be seen any where
between August - October 2013 in Indian Market.It will come in 3
models - Base, Cx, Lx Models
Tata Nano to get a CNG VARIANT-:
Tata will also be launching a CNG variant of the Tata Nano,
which should reduce running costs considerably. The CNG variant of
the Nano will have its CNG tank under the front seats to distribute
weight more evenly and save space in the car. It will, however, be
a much smaller tank than what hatchbacks normally carry, but the
combined range of the 15 litre petrol tank and CNG should give the
car a range of over 500 km. It should be introduced this summer.The
new Tata Nano CNG Concept Car powered by 624cc, which generates
withMaximum Power 37 Bhp @ 5500 rpm, Maximum Torque 51 Nm @ 4000
rpm, 4 Manual Gears.
Tata Nano CNG Concept Car Summary:-* Name: Nano CNG Concept*
Model:* Car Body Type: Hatchback* Segment: A Segment* Top Speed:
105* 0 to 60: 8.00* 0 to 100: 12.50
Tata Nano CNG Concept Car Specification:-* Length: 3099 mm*
Width: 1495 mm* Height: 1652 mm* Seating Capacity: 4* Tyre Size:
135/70 R12 155/65 T12* Suspension: Independent McPherson Struts,
Coil Spring* Turning Circle: 4.00 mtrs.* Boot Space: 80.00 ltrs.*
Steering: Power* Brakes: Front Disk, Rear Drum* Gears: 4 Manual*
Ground Clearance: 180.00 mm* Fuel Tank: 15.00* Kerb Weight: 635.00
kgs.* Trip Meter: 2Launch Date: As per our estimates - Nano CNG can
be launched anytime during Quarter - 2, May - June 2013 in
IndiaPrice: Tata Nano CNG can be priced in range of Rs. 1.85 Lacs -
2.49 Lacs
Tata Nano 800cc car launch In 2013-2014It is shocking that Tatas
dream car and the worlds cheapest car Tata Nano has faced defeat in
its own homeland. But the car maker is unwilling to face it and
thus is about to make three fresh attempts in order to make this
car a real success in India.
First will be the launch of the 800cc model and the next two
will be addition of the diesel and the CNG variants. Thus, the Tata
Nano 800 will be competing head on with the Maruti Alto 800 that
has these days literally swept the entire entry level car buyers to
its side.
Now that Tata has decided to launch the 800cc Nano soon, it
seems that there will be now no reasons for people to deny buying
this car. The Tata Nano 800 price is also expected to be around Rs
2.5 lakh and at this price the car will be much more lucrative than
the Alto 800 or the entry level Chevrolet Spark.It is three years
now and the Nano still is trying to force Tata Motors to expand its
production capacity whereas other car makers go for capacity
expansion even in the first year of the launch of any new car. So
what went wrong with the Nano? But whatever happened to Nano is not
good for Tata Motors.In November the car sales have touched as low
as 3500 units only and that is a danger sign and thus the car maker
has devised these three ways to transform Nano from a low selling
car to the highest selling car. First it was the poor mans car
title that did the damage and then some stray incidents of fire
fueled the hate for this car among the nave rich.
Some myths about Nano
When Nano was introduced, it surprised everyone. It had so many
features but the cost was as low as Rs. 1 lakh. This was really
amazing. Due to this, many competitors, governments and others
opposed Nano. Moreover, its not a new thing that whenever a new
concept is developed, people oppose. They find more limitations
then seeing the benefits. Following are some myths about Nano. But
these are then proved to be wrong.
Myth no 1
Nano is an unsafe car
The car has an all steel body. It meets the mandatory Frontal
Impact requirements. It also meets the Side Impact requirements
although they are not mandatory in India.
Myth no 2
Nano will greatly increase the Pollution Level
The car is Bharat IV and Euro IV compliant although these norms,
which are stricter than the present Bharat III norms, are yet to be
introduced. It has lower carbon footprint, 20 mg / Km of Carbon
Dioxide emission as compared to 45mg / Km, emitted by most of the
two wheelers. Its Multi Port Fuel Injection system is controlled by
an intelligent Bosch Engine Management system which controls the
combustion cycle precisely to ensure compliance to all emission
norms.
Myth no 3
Nano will struggle to perform
Although the car has 33 bops as the maximum horsepower it has a
low kerb weight of 550 Kg and so has a higher power-to weight ratio
when compared to many existing cars running on Indian roads. The
car has a matching acceleration to Maruti 800 and also a good top
speed. Although the manufacturers have estimated 90 Kms as the
maximum speed the car can go up to 105 Kms per hour top speed.
Myth no 4
Nano has very little leg room
Although the car is 8% smaller than Maruti 800 it has lot of
extra leg room at front as there is no engine compartment. This
also leaves sufficient knee room at the rear. The car has a tall
boy type design so there is lot of head space and also enough
Shoulder room. The mono volume design and the wheels having been
put at the corners have freed up lot of in- cabin space and
although the car may be registered as a four-setter, three slim
adults can sit comfortably at the rear.
Myth no 5
Cheap means Uncomfortable
More comfortable than some of the cars selling at even twice the
price. Leaves sufficient knee room at the rear. Easy to get in
& out of the car because of perfect seat height from the
ground. Suspension systems are good and the trailing arms with coil
springs are not found in cheap cars. Rear.
Myth no 6
Its very difficult for a rear - engine car to work.
Rear engines work in many cheap as well as expensive cars.
Auto-rickshaws at one end and Formula One cars on the other extreme
all use rear engines. Maruti Omni too has a rear engine, under the
seat and no one has been burnt due to that. Cooling is easier in
Nano as compared to some vans and there are the air ducts on either
side behind the edge of the doors, which allow air to seep in for
both cooling & for intake.
Myth no 7
There is a shortage of storage space.
There is some storage space although not much. The rear seat
with parcel shelf folds to allow accommodating a large suitcase.
Small articles can be placed under the bonnet also.
Myth no 8
Cutting Corners is evident everywhere
Cost cutting is done by smart designing rather than taking out
the essentials. One wiper has been taken out but the functionality
is intact. Wind shield washer fluid jets are mounted on the wiper
itself rather than the body. Wheels are held by three bolts instead
of four. On the contrary, MRF tubeless tyres and all Alumininium
engine, have been used, which are more expensive than conventional
ones.
Comparison between Nano and Maruti Suzuki Alto 800
COMPARISON BETWEENTATA NANO V/S MARUTI SUZUKI ALTO 800As we know
the price of Nano car is much affordable for middle class people.
This car can be easily affordable by middle class people. In the
Indian market it will face only by one competitor that is Maruti
SUZUKI ALTO 800, which produced by Maruti udyog.
The country like India is aware of the hard fact that if one
desires better fuel efficiency and effortless driving on road;
small cars are the best option. So from leading automobile
manufacturer Maruti Suzuki to home grown carmaker Tata Motors, both
have designed and offered best small cars to the country. And here
we are seeking to comparenew Alto 800from Maruti toTata Nano2012,
which are two exclusive models in the country with quite a lot
differences and exclusive features but at the same time terrific
pricing in order to attract entry-level car buyers. Therefore in
order to make the decision process easier for customers, lets
explore both the models New Alto 800 and Tata Nano and bring out
the exclusivity of these two amazing small cars.Exteriors:-All-new
Alto 800 is truly adorable as it is bit boxy, taller, smarter and
exquisite. It is quite refreshing to look at from exteriors point
of view with fresh designing and trendier pattern. Extremely sporty
in appearance, the new model Alto 800 has got redesigned headlamps,
tail lamps and brushed up structuring as it flaunts more on the
outside with:- High mounted headlamps in petal designTwo part front
grill-Trendy Spoiler-Wheel Arches- Crystal Tail Lamps, etcTata Nano
2012 is very cute to look at, especially with its exciting and
catchy color scheme from Rouge Red, Mojito Green, Sunshine Yellow,
Meteor Silver to Neon Rush, Papaya Orange, Pearl White, Champagne
Gold, Aqua Blue and Serene White. Nano 2012 also shows off:- Body
Color Bumpers & Door Handles- Clear Lens Headlamps & Tail
Lamps- Tinted Glasses- Tinted Windshield with intermittent washer
and dual speed wipers, etcInteriors:-
New Alto 800, being the most eagerly awaited car of this festive
season comes with some grand cabins that look plush and elegant.
Smartly crafted model has now got heightened leg and head room with
newly crafted dashboard, improved central console plus overall use
of quality plastic material. Maruti Suzukis new Alto 800
swanks:
- Bits of Silver Tracing in the Cabins- Sleek Seating
Arrangement- Better Upholstery Design with New Shading, etc
The mini car Nano is superb from inside as compared to its older
sibling. The 2012 version is quite refined and tasteful as the Nano
is adorned with luxury appeal along with several toned up interior
designing. The Nano now comes with:- Premium Beige Color Dashboard-
Upholstery in Premium Beige Fabric- Trendier Comfortable Seating
with new shade combination, etc
Engine, Specification & Performance:-The newly arrived Alto
800 from the home of Maruti Suzuki is equipped with tried and
tested 3-cylinder, 800cc petrol engine borrowed from the older
sibling Alto, the best selling hatch in India. But at the same
time, automaker has improved the overall efficiency of the engine,
which now fetches impressive power of 47.5Bhp at 6000rpm and 69Nm
of peak torque at 3500rpm. With powerful engine and smarter plus
quick gear shifting, the new Alto 800 is effective, terrific and
flawless.Tata Nano 2012 captures its cruising capability from
2-cylinder, 624cc, MPFI engine that delivers fine maximum power of
38 Ps at 5500 rpm and great torque of 51 Nm at 4000 rpm. The engine
comes mated to four-speed manual gearbox. The mini hatch also gets
Independent, Lower Wishbone, McPherson Strut with gas filled
dampers and anti-roll bar for suspension purpose for front power
while Independent, Semi Trailing arm with coil spring & gas
filled shock absorbers for the rear ones. The new Nano 2012 covers
its 0-100km distance in 29.7 seconds.
Comfort and Convenience:-
The new small car Alto 800 from king of the Indian auto jungle,
Maruti Suzuki offers some very exciting features in the compact car
that makes the ride more comfortable and convenient. Few of them
are listed below:
- Power Steering- All Four Door Power Windows- Air
Conditioner/Heater- Rear Headrest- Front Cup Holder- Glove
Compartment
Tata Nano 2012 is too filled with ample of amazing comforting
features such as air conditioner, heater, front power windows,
cabin lamp, map pocket of fabric, front seat headrests, sun visor
on driver and passenger side, driver seat with slider, head lamp
leveling, low fuel warning lamp etc. The top end version also
gets:- Rear Seat Integral Headrests- Passenger Side Seat with
Recliner- Rear Assist Grips- Front Cup Holder- Gear Shift Console,
etc
Safety:-Maruti Suzuki, the Japanese auto giant has equipped its
newly launched Alto 800 with few of the significant safety features
such as:- Central Locking- Outside Rear-View Mirrors- Front Fog
Lamps- Safety Belts- Driver Side AirbagTata Motor Nano 2012 from
the Indian carmakers home has got good safety lineaments like:-
Center High Mount Stop Lamp- Laminated Windshield- Door Lock on
Driver Side- Booster-assisted Brakes- Front & Rear Seat Belts-
Additional Body Reinforcements- Intrusion beam and
radialMileage:-New Alto 800 (petrol) gives a mileage of 22.7kmpl
and CNG version renders fuel efficiency of 30.46 km/kg, according
to ARAI certification.The all new Tata Nano 2012 is more fuel
efficient, offering a mileage of 25.4 kmpl, ARAI
certified.Price:-With competitive pricing, the new Alto 800
(petrol) shows off a price tag of Rs. 2.44 lakh, while the CNG
version comes with a price label of Rs. 3.56 lakh, ex-showroom
Delhi.Tata Nano 2012 is available at a range between Rs. 1.27 lakh
to Rs 1.96 lakh (Ex-showroom New Delhi).Verdict: -Small cars are
truly the top contenders of domestic auto market and one among them
is newly launched Alto 800 from the auto rulers stable, Maruti
Suzuki. On the contrary stands the peoples car Nano from Tata
Motors that is still struggling to make big in the market with few
wonderful updates and facelifts. Though Nano never able to pick up
that top speed in the country, Alto 800 is the new contender that
is very sure of its success because of many great aspects and its
crafted platform based on bestseller Alto. Choice is all personal,
which one to pick and drive on busy Indian streets.
Price of Maruti Suzuki Alto 800 in major city of India Alto 800
(Figures in rupees)Mumbai257000
Delhi243000
Bangalore258000
Kolkata262000
Lucknow 253000
Jaipur251000
TATA NANO V/S MARUTI SUZUKI ALTO 800
FEATURES OF TATA NANO COMPRAED TO MARUTI SUZUKI ALTO 800
COST:
The dealer price of Maruti Suzuki Alto 800 varies from city to
city. The dealer price in Delhi is approximately2.43 lakh and the
on road price is approximately 2.73 lakhs Indian rupees. The dealer
price of Nano is just 1.00 lakhs rupees and the road price is only
1.26 lakhs rupees. So here we can put the equation 2 * Nano = 1*
Maruti Suzuki Alto 800
ENGINE:
Maruti Suzuki Alto 800: 796 cc Tata Nano :624 cc (better fuel
than Maruti Suzuki Alto 800)
ENGINE TYPE:
Maruti Suzuki Alto 800 petrol/CNG Nano : petrol (diesel / CNG
version will be later)
SEATING CAPACITY:
Maruti Suzuki Alto 800: 4+1 person Nano: 4+1 person
FUEL TANK CAPACITY: Maruti Suzuki 800 : 35 Lt (petrol) Nano: 15
Lt.
WEIGHT Maruti Suzuki Alto 800 more than 695 kg (gross weight is
1185 kg) Nano more than 600 kg
TOP SPEED: Maruti Suzuki Alto800 : 145 km/hr Nano : 90 km
/hr
SEGMENT: Maruti Suzuki Alto 800 middle class people Nano: lower
and middle class people.
FUEL CONSUMPTION: Maruti Suzuki ALTO 800: city 17.0 and highway
22.74km Nano: city 22.2 km and highway 25.4 km
DIMENSIONS:
Maruti Suzuki ALTO 800Tata Nano
Length3.335 meters (131.3 inch3.1 meters
Width1.440 meters (56.7 inch)1.5 meters
Height(55.3 inches)1.6 meters
BREAKS: Maruti Suzuki Alto800: Front Disk, Rear Drum Nano: Front
Disk, Rear Drum
COLOURS
Maruti Suzuki Alto 800
Tata Nano:
The Nano are not much taller and broader as compared to Maruti
Suzuki Alto800 but it has 21 percent larger spaces in side but 8
percent short than ALTO800.
Disadvantages of NANO vs. Maruti Suzuki Alto 800
1. LPG/CNG/DIESAL version is Work In Progress.2. Top Speed will
be laser than Alto800.3. Space for Language is less.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This
project is based on information collected from primary sources.
After the detailed study, an attempt has been made to present A
STUDY OF NEW PRODUCT DEVLOPMENT WITH TATA NANO AND COMPRATATIVE
STUDY ON MARUTI SUZUKI ALTO 800. The data had been used to cover
various aspects like consumers preference and customers
satisfaction regarding TATA NANO AND MARUTI SUZUKI ALTO 800. In
collecting requisite data and information regarding the topic
selected, I went to the residents of JAIPUR and collected the
data.
Survey design:The study is a cross sectional study because the
data were collected at a single point of time. For the purpose of
present study a related sample of population was selected on the
basis of convenience.
Sample Size and Design:A sample of 100 people was taken on the
basis of convenience. The actual consumers were contacted on the
basis of random sampling.
Research Instrument:This work is carried out through
self-administered questionnaires. The questions included were open
ended, dichotomous and offered multiple choices.
Research objectives
To study about how a new product- Tata Nano was developed based
on marketing theory of new product development.
To study about what made possible for Tata to develop and
produce a car for just Rs. One lakh.
To study the objectives and target customers of Tatas one lakh
car.
To study and compare between Tata Nano and Maruti Suzuki Alto
800.
To study on customers buying behavior and preferences and views
about Tata Nano and Maruti Suzuki Alto 800 by various methods of
data collection.
Data Collection MethodsThe success of any project or market
survey depends heavily on the data collection and analysis. It is
necessary that the data collected is a reliable data in order to
achieve the research objective. For research regarding the views of
people about Tata Nano and its comparison between Tata Nano and
Maruti Suzuki ALTO 800 two types of data collection methods were
used. Primary Data Secondary Data
PRIMARY DATA:Primary data is the data, which are fresh and
collected for the first time, and are original in character. There
are various Primary Data Collection techniques, which have helped
in data gathering. This was collected through
questioner.Questionnaires are a popular means of collecting data,
but are difficult to design and often require many rewrites before
an acceptable questionnaire is produced.
Advantages: Can be posted, e-mailed or faxed. Wide geographic
coverage. Relatively cheap. No prior arrangements are needed.
Avoids embarrassment on the part of the respondent. Respondent can
consider responses. No interviewer bias.
Disadvantages: Design problems. Questions have to be relatively
simple. Time delay whilst waiting for responses to be returned.
Several reminders may be required. Assumes no literacy problems. No
control over who completes it. Not possible to give assistance if
required. Problems with incomplete questionnaires.
Points kept in mind while preparing the questioner Liberal
spacing Length of the questioner is kept normal Logical Order
Question are short, simple and to the point; all unnecessary words
are avoided Close ended questions are asked so that its easy for
the respondent to fill the questioner and also easy to analysis
Sample population was selected on the basis of random sampling
method.
SECONDARY DATA:Secondary data are those data, which have been
already collected or published for the purpose other than specific
research need at hand. This data is simply used up by the
researcher for his purpose of collected data and its used for the
same purpose. The secondary data sources here in this project
are:Websites:
www.tatamotors.com,www.marutisuzuki.com,www.autocarindia.com,www.autobid.in,www.overdrive.in,Books:
Auto Bid Magazine, Overdrive Magazine, Autocarindia Magazine
DATA ANALYSIS AND INTERPRETAION
Various Results Of Analysis In The Form Of Charts
The % of people who are aware of the Tatas new product Nano car
is shown with the help of pie chart. Here, blue color indicates
that people are aware of Tata Nano And red color indicates the % of
people who are not aware of Tata Nano.While analyzing the chart, we
can know that only 3% of the total sample population is not aware
about Tata Nano. This shows the great effect of media, newspaper
and launching of this product.
Preferences Of Different Age Group Regarding Buying Of Nano.
This chart shows the preference of different age group to buy
Tata nano when it is launched.Here on x- axis, no of respondents is
given. And on y axis the age group is given. Blue triangle
indicates willingness to purchase Tata Nano. Red triangle indicates
that the respondent is not willing to purchase it And green
indicates that the respondent is not sure.While analyzing this
chart, we can see that the young generation is egar to buy the
product. While due to some misunderstandings about tatanano, the
older generation doesnt desire to buy it or are not sure about
it.
Preferences Of The Respondents Regarding Buying Of Maruti Suzuki
Alto 800 And Tata Nano
This chart shows the preference of the respondent. The question
asked in the questioner was, if you were to buy one of the
following, which would you prefer. the options given were:Maruti
Alto800 Tata Nano by having a glance at the chart, we can see that
majority went for Tata Nano. Maruti Suzuki Alto 800 got very less
votes. This shows a tough time for Maruti Suzuki Alto800 in
future.
Views about success of Nano
The question asked here was, do you think Nano will be
successful the options given were yes no not sure.Its very
interesting to note here that none of the respondent said that Nano
wont be successful. As shown in the chart, the portion of purple
color which shows failure is not there at all.But again everybody
does not believe in its success. As seen from the chart, 50% of the
respondent has a doubt about success of Nano.
Nano- A Peoples Car!!!
The question asked here is, What is it that makes Nano a peoples
car?By analyzing the chart, we can say that people consider the
cost factor the most for Nano followed by the innovation. Even
looks has got quite positive reply. Nano is a product that is
developed perfectly at minimum cost without sacrificing the
quality.
QUESTIONNAIRE
Que1. Which brand of Cars do you prefer?
Interpretation:
Tata Nano60Maruti Suzuki alto 800 40
60% peoples prefer Tata Nano while 40% prefer Maruti Suzuki alto
800.
Que2. Rank the brands of cars according to your preference? (1
for most preferred)
Interpretation:
Tata Nano Maruti Suzuki Alto 800
Design12Mileage12
Company Status21
Resale Value21
Que3. Which brand of a Car do you like to buy?
Interpretation:
Tata (Other Cars) 45%Maruti Suzuki Alto 800 (Other Cars) 55%
55% people like to buy Maruti brand and 45% like to buy Tata
brand.
Que4. Which small car would you prefer to buy?
Maruti Suzuki Alto 800 .Tata NANO
Other..
Interpretation:
20% peopleprefer to buy Maruti Suzuki as a small car. And
60%prefer Tata Nano as a small car. And remaining 20% people prefer
other car.
Que5. Do you think NANO is people's car?
Yes
No
Cant say
Interpretation:
90% people says that nano is people car. 5%people say no. And
remaining 5% cants say.
Que6. Will Tata be able to maintain thepriceof nano in future if
there is hike incost of raw materials?
Yes No Cant say
Interpretation:
60% people say yes that Tata be able to maintain thepriceof nano
in future if there is hike incost of raw materials. 30% say no. And
remaining 10%cant say.
Que7. What are the factors considered by you to buy a Tata Nano
car? Price
Quality
Mileage
Comforts
Interpretation:
For the above question, among the total number of participants
from, 70% of the participants answered that they buy Tata Nano Car
for its price, 10% of them answered that they buy Nano for its
quality, 10% of the participants stated that they buy Nano for its
mileage and finally 10% of the participants stated that they buy
Nano for its comforts.
Que8. Which promotional offers attract you most?
Interpretation:
Free gifts 40% Price Offer45%any other 15%
40% attracts for free gifts, 45% attracts for price offer and
15% attract on any other offer.
Que9.Which of these factors affects your purchase?
Advertisement
Suggestion from friends and relatives
Attractive Offers
Brand Ambassadors
Interpretation:
30% people buy cars while watching AD on T.V, 15% buying from
suggestion of friends & family, 10% buy cars by checking
attractive offers and 45% buying cars while checking their brand
ambassador.
Que10. Which media of advertisement influence your purchase?
Television40%Newspapers30%Brochures 15%
Hoarding5%Display10%
Interpretation:
40% buying through TV adv., 30% buying through newspaper adv.,
15% buying through broachers, 5% buying through hording boards and
10% buying through display ads.
Que11. How frequently do you purchase cars?
Once in a YearOnce in a Two YearsOnce In a Five YearOnce in Ten
YearsOnce in a hole Life
Interpretation:
5% Buyers purchase the car once in a Year. 21%Buyer purchase the
car once in a Two Years. 42% Buyers purchase the car in Once In a
Five Year. 27% Buyers purchase the car in once in ten Years. 5%
Buyerspurchase the car in once ina whole Life.
Que12. What according to you is the reasonable price of
Cars?
Below One Lakh 5%One Lakh10%1-2 Lakh 35%
2-3 Lakh 30%above 3 Lakh 20%
Interpretation:
5% prefer car prize below 1 Lakh, 10% prefer car prize Rs. 1
Lakh, 35% prefer car prize between 1-2 Lakhs, 30% prefer car prize
between 2-3 Lakhs and 20% prefer car prize above 3 lakhs.
Que13. If your preferred brand is not available for repeat
purchases then what will you do?
Postpone your purchase30%
Switch over to other brand 40%
Go to the other showroom to search for your preferred brand
30%
Interpretation:
30% people postpone their purchase while 40% switch over to
another brand and 30% go to another showroom for their prefer brand
car.
Que14. If another brand of the same product appears in the
market, will you prefer to stop? Buying this brand and buy the new
brand?
No, not at all 20%I may consider 30%
No, I shall not35% cant say15%
Interpretation:
20% will not stop buying their brand while 30% while consider
about this and 35% shall not change their brand and 15% cant say
about this.
Que15. If you dont like to change to the new brand, then what
are the reasons for continuing to purchase the old brand?
PERSONAL DETAILS
Name:
Address:
Age: Between 15-30Between31-45Between 45-60Above 60
Gender: M/F
Phone Number:
Marital status:
Education:
Profession:
Some Feedbacks Based On Questioner:
Positive Response
I have one more angle to look at Nano. I think it is worlds most
hyped about gadget after the iPhone. Did I just say gadget. Well,
yes Tata Nano is not just a car; one can also look at it like an
expensive gadget which also gives us mobility. One of the very few
cute looking gadgets that all us geeks will love, who would
generally be interested in stuff that is sleek and powerful. I am
also hopeful that Tata will launch FCV and alternative fuel cars
soon. I definitely would like to buy the car. Who would not want a
good car for just 100000 Rs? Its just cool. One should definitely
buy it. Cheap As it is, but very smart and sexy. I would defiantly
buy it. Congratulations to Mr. Rattan Tata. He did a real good
job.
Negative Response
It is impossible to build a car at such a price. No one has been
able to do it so far. It is just not possible. It will be more like
a scooter with a roof. I am sure no one can make the car for the
cost of two bikes. This car is another auto rickshaw. It will add a
lot to the traffic on road. It shall be a half car with no roof. I
doubt if it will be able to go up the flyovers. It may be an
upgraded Auto-rickshaw with plastic body. It shall be a very unsafe
car as the very idea of 1 Lac car is too farfetched to be true. It
shall never meet the emission norms. We shall choke on the
poisonous emissions from this car.
The disbelief kept piling up and up and was further compounded
by the competitors adding their own mite to the speculations.
Mixed Response
IT HAS NOT BEEN DONE EVER. Even the nearest car is double the
cost. Let us see what Mr. Tata can do to maintain the price line. I
am not very convinced but would definitely go for it if it is safe.
I hope I can take my family of 4 in this car. I wish Tata's make
this dream a reality. I know the talk is that it is a myth. However
miracles do happen. Let us wait and watch.The reaction was a mixed
one. People wished it to be true but were very cautious about
expressing their optimism.
Conclusion
MY OPINIONAfter the study of various aspects I found that
Nano Car Is Definitely Not For:-
Someone looking for better performance Someone who is looking to
impress Someone who want to speed trial on Sunday Someone who is
looking for long drives.
But Nano Car Is Defiantly For
Someone who is looking to buy a car but cannot afford much
price. A students who want to go college, tuition instead of bike
etc. Someone who depends on second hand car. For a house wife who
can buy a car with her own savings. Someone who depends on
scooter.
So Nano is not a basically a luxury cars but it can fulfilled
the all capacity for middle class people.
Impact Of Tata Nano On Life Of Common Man
In India every one can afford a Nano, just as we buy any
electronic appliances for a home uses. Decrease in price of second
hand car. High traffic on roads due to sale of exceeds car on
roads. Increase in loan on car installments.
And finally Nano is definitely better than Maruti Suzuki Alto
800. Tata has succeeded in value engineering of the product and its
great success for Tatas. Its something on which India can feel
proud of. Nano has been developed effectively.
Appendix
QUESTIONNAIRE
PERSONAL DETAILS
Name:
Address:
Age: Between 15-30Between31-45Between 45-60Above 60
Gender: M/F
Phone Number:
Marital status:
Education:
Profession:
Dear Respondent
I, DIWAKAR PALIWAL student of MBA, APEX INSTITUTE OF MANAGEMENT
&SCIENCE, JAIPUR, is working on project NEW PRODUCT DEVELOPMENT
WITH TATA NANO AND COMPARITIVE SYUDY ON MARUTI SUZUKI ALTO 800 The
following questions are the main instrument of my survey. So please
give your opinion up to the best of your knowledge.
Que1. Which brand of Cars do you prefer?
Maruti Suzuki alto 800
Tata Nano
Que2. Rank the brands of cars according to your preference?
(TATA NANO V/S MARUTI SUZUKI ALTO 800) (1 for most preferred)?
Design Mileage
Company Status
Resale Value
Que3. Which brand of a Car do you like to buy?
Tata (Other Cars)
Maruti Suzuki Alto 800 (Other Cars)
Que4. Which small car would you prefer to buy?
Maruti Suzuki Alto 800
.Tata NANO
Other..
Que5. Do you think NANO is people's car?
Yes
No
Cant say
Que6. Will Tata be able to maintain thepriceof nano in future if
there is hike in cost of raw materials?
Yes No Cant say
Que7. What are the factors considered by you to buy a Tata Nano
car?
Price
Quality
Mileage
Comforts
Que8. Which promotional offers attract you most?
Free gifts
Price Offer
any other
Que9.Which of these factors affects your purchase?
Advertisement
Suggestion from friends and relatives
Attractive Offers
Brand Ambassadors
Que10. Which media of advertisement influence your purchase?
Television
Newspapers
Brochures
Hoarding
Display
Que11. How frequently do you purchase cars?
Once in a Year Once in a Two Years
Once In a Five Year Once in Ten Years
Once in a hole Life
Que12. What according to you is the reasonable price of
Cars?
Below One Lakh
One Lakh
1-2 Lakhs
2-3 Lakhs
Above 3 Lakhs
Que13. If your preferred brand is not available for repeat
purchases then what will you do?
Postpone your purchase
Switch over to other brand
Go to the other showroom to search for your preferred brand
Que14. If another brand of the same product appears in the
market, will you prefer to stop? Buying this brand and buy the new
brand?
No, not at all
I may consider
No, I shall not
cant say
Que15. If you dont like to change to the new brand, then what
are the reasons for continuing to purchase the old brand?
BIBLIOGRAPHY
Books -:
Kotler Philip Marketing Management, millennium edition, prentice
Hall inc.Publication. Kothari C.R.Research Methology, 3rd
Edition,New age Publication Sharma D.D.Marketing
Research,3rdEdition,Publication Sultan Chand & son
Publication
Magazines-:
Auto-India Auto-Car Auto Bid Magazine Overdrive Magazine
Autocarindia Magazine
Websites -:
http://www.wikipedia.com/ http://www.tatamotors.com/
http://www.maruti.com/