Tata Nano

Failure or Success ?
Presented To: Presented By:
Dr.Monica sharma
Shabid Ashraf
Abhishek Sharma
Shikha Mathur
Neha Dagur
Ankita Singh

Research Objective
To find out the perception of Tata Nano among the
young generation studying at MNIT Jaipur
Work done/Methodology
Objective Identified.
Questionnaire prepared.
Data collected from the survey results.
Interpretation of result.
Preparations of Graphs
Collection of market information

How ?
Preparing a questionnaire of around 15 questions.
Taking feedbacks of MNIT students i.e. there
perception about Tata Nano.
Target is to collect around 50 responses.
On the basis of there feedback we are trying to prove
our point of view.
Take the help of survey method.
Research is purely based on primary data/First hand
data.
Data analysis is being done.
Market statistics are also taken into consideration.

Sampling
We choose the sample on the basis of Non-Probability sampling.
We decided to use Convenience sampling by taking student of
MNIT as sample.
Data Analysis
56%
44%
RATIO
male
female
We have taken samples of
around 50 students. In which
56% are male and 44% are
female.
As shown in a pie chart.


Market Survey: Consumers View on TATA Nano

PERSONAL DETAILS












1. What is the first thing which comes to your mind when you think about NANO?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________

2. Instead of purchasing a Bike, will you prefer to go for a NANO
a) yes b) no

3. Which feature of Nano attracts you the most and inspires you to go for it?
a) Mileage b) design
c) Price d) cant say
e) All the above

1. NAME:________________________________________________

2. AGE : _______yrs 3. GENDER: M F

4. OCCUPATION:___________________________

5. ADDRESS:_____________________________________________




4. For what purpose you would like to use Nano?
a) Will offer it to your children to use it in place of a two- wheeler
b) Will use it as family car for shopping and travel
c) Will prefer as a taxi
d) Would like to have as a taxi
e) Others- Specify

5. Do you think Nano is a peoples car?
a) Yes b) No
c) Cant say

6. Will you recommend NANO to your friends?
a) Yes b) No
c) Cant say

7. Which small car would you prefer to buy?
a) Alto b) Nano
c) Other..

8. How will you feel if Nano is used as a taxi?
a) its a great concept
b) I dont think its a good idea

9. Can you trust Nano for safety?
a) Yes b) No
c) Cant say
10. What is the rate of fuel consumption for Nano?
a) Low b) Average
c) Better

11. Participant is fully aware of Nanos Offers and Promotions?
a) Yes, fully aware b) No, not fully aware
c) Not at all aware
12. Why will you buy Nano?
a) Low Price b) After sales service
c) Attractive looks d) Comfort and convenience
e) Patriotism. Its an Indian car. f) I wont buy it

13. When it comes to comfort and convenience, Nano is
a) Very comfortable and convenience b) Average
c) Less than average d) Not at all comfortable

14. Do you think Nano is designed and built according Indias local weather and road conditions?
a) Yes b) No
c) Not fully

15. According to your opinion what can be done to improve Nanos sales in local markets?
a) Nano should provide new models
b) Improve quality and so that car maintenance cost is decreased
c) Should reduce car prices
d) Lower installments
e) Others Specify

Student perception about
Nano
64%
12%
8%
8, 16% cheap
car
efficient
car
less
space
useless
Instead of bike will you go
for Nano
24%
76%
yes
no
Feature of Nano which
attract most
10%
12%
70%
6%
2%
Mileage
Design
Price
Can't
say
All
For what purpose you would
like to use Nano?
31%
36%
19%
14%
response
use it in place of a
two- wheeler
Will use as a family car
for shopping and
travel
Will prefer as a taxi
Do you think Nano is a
peoples car?
27%
73%
YES
NO
Will you recommend NANO to
your friends?

23%
59%
18%
YES
NO
MAY BE
Which small car would you
prefer to buy?

55%
26%
19%
REFERENCE
ALTO
NANO
OTHER
How will you feel if Nano is used
as a taxi?

24%
51%
25%
ITS GREAT
OPTION
ITS NOT A GOOD
IDEA
BAD IDEA
Can you trust Nano for
safety?
25%
75%
YES
NO
When it comes to comfort and
convenience, Nano is
10%
16%
43%
31%
Very
comfortable and
convenience
AVG
LESS THEN AVG
NOT
Do you think Nano is designed and built
according Indias local weather and road
conditions?

22%
66%
12%
YES
NOT
NOT FULLY
According to your opinion what can be
done to improve Nanos sales in local
markets?
18%
50%
15%
17%
) Nano should
provide new
models
Improve quality
and so that car
maintenance cost
is decreased
) Should reduce
car prices
Lower installments
Tata Nano sales dropped
Tata Nano sales
The overall sales for Tata Motors for January 2014
stand at 40,481 units as compared to the 61,660
units sold in January 2013. This shows a decline in
sales of 34 per cent. The domestic sales also shows a
drop of 37 per cent for last month as 36,657 units
were sold in contrast to 57,780 units sold in the same
period last year. Exports fell by 1 per cent with
3,824 units being sold out of the country as against
3,880 units exported in January 2013.

When Ratan Tata unveiled the Nano in 2009 at the
New Delhi Auto Expo, the car propelled India's global
standing in the sphere of frugal engineering and
reinforced his image as a visionary business leader.

The "People's Car", as it was called because of its Rs 1
lakh base price, was supposed to transform the auto
sector in India and rest of the developing world. In a
2009 report, rating agency CRISIL, in fact, predicted
that the Nano could expand the Indian car market by
as much as 65 per cent.
Four years later, the story is very different.
Ratan Tata: Marketing Nano as
'cheapest car' was our mistake.
The Nano has failed to live up to the expectations
after being hyped as the cheapest car to hit the
roads. It sales have been dwindling despite the
company's attempts to reposition it. In the April-
October period this fiscal, it clocked just 12,322
units as against 43,627 units in the year-ago period,
down 71.7 per cent.
In the festive month of November, just about 3,500
Nanos were sold as against the monthly production
capacity of 21,000 units. In the April-November period,
total sales were at 39,646 units.
Some Facts about Tata
Nano
A fair share of India's two-wheeler owners - about 12
million get purchased a year - who were expected to
upgrade to a Nano failed to turn up at Tata Motors'
showrooms. The company has cut back production at
the Rs 2,000 crore Sanand plant in Gujarat. Many
vendors supplying components to the Nano have
begun laying off workers as their volumes have shrunk
too.

Conclusion
Where Nano Fail..
Tata made two miss-steps here. First, the company
designed for what it thought its customers should
have, instead of figuring out what they really wanted.
And second, it didnt understand the cultural drivers of
customers brand perceptions.
Low quality paint job,
Undersized engine,
Small boot,
Small fuel tank,
Low comfort level,
It turns out that those climbing into India's middle class
want cheap cars, but they don't want cars that seem
cheapand are willing to pay more than Tata
reckoned for a vehicle that has a more upmarket
image
Safety issue
Finishing and interiors are not so attracting.


Recommendations
Improve quality so that maintenance cost is decreased.
Clean up the Brand Image Nano first of all needs to re-
establish itself as a credible brand. This might be the
hardest thing to do given the beating the brand image
has taken because of the fires. Nano would need to
aggressively work on its PR and show how the accidents
are not because of flaws in Nanos design but because of
some unfortunate external factors.
Define a clear Marketing Strategy Nano needs to have
marketing strategies to target its real consumer segment
which is the masses of India and showcase the Nano as
an aspirational product for them instead of coming
across as an accessory for the rich.

Use Shareholder base of Tata Tata Motors have a
shareholder base of around 350,000 right now. It could
be utilized to boost Nano sales through discounts etc.
Rework on Pricing when Nano started, a major
challenge was to prove whether it was possible to
manufacture a car which can be sold at the price of
Rs. 1 lakh. That point has been proven. The real
challenge now is creating profitable car business. If
Tata starts pricing its Nano in a range where it is more
cost-effective, it would first, reduce the losses Tata
incurs per car, as well as give the brand a facelift.
References
http://www.pcmrd.org/Documents/Journals/PMRVol1
0Issue2/PMRVol10Issue2-5.pdf
http://online.wsj.com (wall street journal)
www.studymode.com
www.tatanano.com
http://daindunston.com
http://deniseleeyohn.com/bites/2013/05/22/what-
went-wrong-with-tata-motors-nano