Customer Attitude Towards “TATA NANO” on Present Scenario

Research Proposal

Submitted
In the Partial fulfillment of the Degree of Master in Business Administration
Semester-IV

By
Rami dhaval (Enroll. No: 097130592057)
Desai Mahesh (Enroll. No: o9713059)

Under The Guidance of

Asst. Prof. Ms Mital Aradan
Faculty of Management Studies

Submitted To
Faculty of Management Studies
Gujarat Technological University

(March 2011)
 CONTENT

1. INTRODUCTION……………………………………………………………………

2. STATEMENT OF THE PROBLEM………………………………………………..

3. LITERATURE SURVEY……………………………………………………………

4. MOTIVATION OF THE
STUDY…………………………………………………………………………………

5. RESEARCH DESIGN AND HYPOTHESIS ……………………………………….

6. RESEARCH METHODOLOGY……………………………………………………..

7. DATA SOURCES………………………………………………………………………

8. TENTATIVE CHAPTER PLAN ……………………………………………………..

9. BENEFICIARIES………………………………………………………………………

10. A SHORT WRITE UP ON THE RESEARCHER…………………………....….......

11. BIBLIOGRAPHY……………………………………………………………………
 INTRODUCTION

Tata Group is one of India's largest and most respected business groups. Tata Group's name is
synonymous with India's industrialization. The Group gave India her first steel plant, hydro-
electric plant, inorganic chemistry plant and created a reservoir of scientific and technological
manpower for the country. Its Trusts have instituted the Tata Institute of Social Sciences in 1936;
India's first cancer hospital, the Tata Memorial in 1941, and in 1945, the Tata Institute of
Fundamental Research, which became the cradle of India's Atomic energy program.

Today, Tata Group comprises 96 operating companies in seven business sectors: information
systems and communications; engineering; materials; services; energy; consumer products; and
chemicals. The Group has operations in more than 54 countries across six continents, and its
companies export products and services to 120 nations.

 
Ratan Tata's dream was to manufacture a car costing Rs 1 00,000 (1998: approx. US$2,200;
today US$2,000 US$2,528). He realized his dream by launching the car in New Delhi Auto Expo
on January 10, 2008. Three models of the Tata Nano were announced, and Ratan Tata delivered
on his commitment to developing a car costing only 1 lakh rupees, adding that "a

promise is a promise," referring to his earlier promise to deliver this car at the said cost.
However, the price of the car has since been raised.
Recently when his plant for Nano production in Singur, West Bengal, was obstructed by Mamta
Banerjee, his decision of going out of the state was warmly welcomed by the Indian corporate
media and the English-speaking middle class. Banerjee had the support of the people of Singur,
where the Nano plant was being constructed, and many social movements. They criticised Ratan
Tata for forcing people out of their land in collusion with the Left Front government in the state,
which is headed by Budhadeb Bhattacharjee.
On October 7, 2008, after a controversial stay in West Bengal, Ratan Tata and his team shifted
their Rs 1-lakh car Nano project to Sanand near Ahmedabad at an investment of Rs 2,000 crore
(Rs 20 billion), declaring that efforts will be made to roll out the world's cheapest car from a
make-shift plant to meet the deadline.
The Gujarat chief minister Narendra Modi, who is accused of masterminding the Gujarat riots of
2002, granted him huge subsidy for building the facility, including free land. Praising Modi for
speedy allocation of about 1,100 acres (4.5 km2) of centrally located land, Ratan Tata said that
the company had a great deal of urgency in having a new location and was driven by the
reputation of the state.

TATA MOTORS , one of the leading players in automobile industry in south asia , the world’s
second largest Bus manufacturer and 4rth largest Truck manufacturer, launched the cheapest
car in the world ,
TATA NANO.
At the time of inception , the estimated purchase price for consumers was Rs.100,000(Indian) but
a few years down the line , the prices of raw materials increased by 23% and the car price raised
substantially.
Tata initially targeted the vehicle as "the least expensive production car in the world" — aiming
for a starting price of 100,000 rupees or approximately US$2000 (using exchange rate as of 22
March 2009)6 years ago, despite rapidly rising material prices at the time. The base price for the
Nano will be 120,000 rupees, including road tax and delivery. Higher level models will cost
more and come with air-conditioning. Sun visors and radios are extra. As of August 2008,
material costs had risen from 13% to 23% over the car’s development, and Tata faced the choice
of

 introducing the car with an artificially low price through government subsidies and tax-
breaks.
 forgoing profit on the car, raising the price of the car.
 using vertical-integration to artificially boost profits on cars at the expense of their
materials industries.
 partially using inexpensive polymers or biodegradable plastics instead of a full metal-
body
 STATEMENT OF THE PROBLEM
 Question of safety

India has 8 percent of the world’s vehicle fatalities and less than 1 per cent of its
cars, with more than 90,000 people killed on the country’s roads every year.
Introducing a million Nanos into the mix may bring more – and unwelcome –
headlines.

Tata, which has the only crash-test facility in the country, said that the Nano
"exceeds current regulatory requirements". And while it is not a deathtrap – it has
crumple zones, seat belts and strong seat anchors – it is worth bearing in mind that
total vehicle crash testing (rather than just frontal impact), airbags and antilock
braking systems are not mandatory. Without these, the Nano would not even be
considered for approval in Britain. Adding them would double its price in India,
which is why they have been omitted. ”
Tata Motors will offer a version of the Nano with these safety-features, including an airbag
system in its electric version. The Nano has an all sheet-metal body made from Japanese
and Korean steel, with safety features such as crumple zones, intrusion-resistant doors,
seat-belts, strong seats and anchorages, and the rear tailgate glass bonded to the body.
Tires are tubeless.

 Mass motorisation
As the Nano was conceived and designed around introducing the automobile to a sector of the
population who are currently using eco-friendly bicycles and motorcycles, environmentalists are
concerned that its extraordinarily low price might lead to mass motorization in countries like
India and therefore possibly aggravate pollution as well as increase the demand for oil. The
ecology focused German newspaper die tageszeitung feels that such concerns are "inappropriate"
as the Tata Nano has lower emissions compared to the average Volkswagen, and that developing
countries shouldn't be denied the right to motorized mobility when industrialized countries
should be looking to reduce their emissions and usage of cars. Die Welt reports that the car
conforms with environmental protection, and will have the lowest emissions in India.
In crowded metropolitan cities like Mumbai, Ratan Tata has conceived a scheme to only offer
the Nano to those individuals who do not have an automobile already. The Nano will also
replace many overloaded and worn-out two-stroke polluting vehicles, both two and three-
wheeled. According to Anumita Roychowdhury, associate director of the Centre for Science and
Environment in New Delhi, "the low-cost cars will be disastrous" in the current policy and
regulatory framework.

 Used car market effect

The Nano is alleged to have severely affected the used car market in India, as many
Indians opt to wait for the Nano's release rather than buying used cars, such as the Maruti
800 (a rebadged Suzuki Alto), which is considered as the Nano's nearest competitor.
Sales of new Maruti 800s have dropped by 20%, and used ones by 30% following the
unveiling of the Nano. As one automotive journalist summarises; “People are asking
themselves—and us—why they should pay, say, 250,000 Rupees for a Maruti Alto, when
they can wait and get a brand new Nano for less in a few months’ time, a car that is
actually bigger”.
 Environmental impact
In India, a car like this can crowd the streets, forcing the government to improve
infrastructure - and as the evolution of the Western industrial society demonstrates,
affordable cars can be a major force for change.
But till that happens, this is a car that can seriously crowd the streets - and make life a bit
tougher in the short-term
 Spontaneous fire
There have been three cases of spontaneous fires occurring inside the Nano. The fires
have been traced to a short circuit in the combination switch that controls the headlights,
windscreen wipers and indicators located in the steering column.
Technical experts have also blamed the placement of the battery for contributing to
overheating in the wires, the failure of the circuit breaker in tripping during a short circuit
episode, and the failure of the fuse to melt when excessive amperage (resulting from a
short circuit condition) is detected in the circuit leading to heated wire.
 LITERATURE SURVEY
The Tata ‘Nano’
By Raju Rao
International Correspondent for PM Forum & PM World Today
Chennai, India
Never before has a single project in India generated so much of interest at the global level. The
recent launch of the Rs 1 lakh (about $2500) car from the house of Tatas has indeed received
rave reviews both in India and around the world. Unveiled by Mr. Ratan N. Tata, Chairman of
the Tata Group and Tata Motors, ‘N A N O ’, the People’s Car signifies a first for the global
automobile industry.
small is beautiful ! Tata Group Chairman Ratan Tata unveiling the Rs. 1 lakh car ‘Tata Nano’
at the 9th Auto Expo in New Delhi on 10 Jan 2008 .

“The vision was to give the people of India a car which is not produced anywhere else in the
world. Through “ n a n o ” which denotes high technology and small size, I have tried to provide
a reliable mode of transport to every Indian family,” Mr. Tata told an overflowing press
conference attended by Indian as well as international media at the inaugural day of the Auto
Expo 2008 here.

http://www.pmworldtoday.net

Girish Wagh: Man behind the machine.

The man behind building the ‘Nano’ is 37 yr old Girish Wagh . Ratan Tata
acknowledged the contribution of Wagh and his team of 500 engineers, calling
him over to the dais near the car and introducing him at the unveiling ceremony.
Girish Wagh, the leader of the Tata Motors engineers who built the Nano,
repeatedly used two words to describe how they helped turn Ratan Tata’s dream
into reality. “Team work... team work ... team work,”
Financial Express 14 Jan 2008h ttp : / / w w w financial xpress. co m/ n ew s/ Ta ta - N a no s-
design_price_wow_foreigners/261017/
 Maurya Krishna Kumar
I was a researcher of the “TATA’S NANO” car in which, I research perception of customer on
“NANO”. I had use questionnaire as a tool in my marketing research.

In my project, I have visited some areas to collect the data like (Krishnanagar, Bapunagar,
Parshwanath town ship, Nroda, amraiwadi, R.B.Institute of management thakkarnagar, Income
tax and laldarwaj) in ahmedabad city .I educated every people before filling the questionnaire
about my project work. The task of filling of questionnaire was finished. After that I analyses the
entire questionnaire and get real perception of the people about “TATA NANO” in ahmedabad
city, and I also came to know the acceptance level of “TATA NANO” in ahmedabad city

(1)-"Hats off to Mr. Ratan Tata"

A review on Tata  Nano (LX) by Sumit Kumar .

User's Ratings for the car (           )

 Style        

 Comfort        

 Performance
Avg Model Rating:     Fuel Economy        

 Overall        

Pros: Turning Radius, Exteriors, Seating Comfort, HVAC, Inner Space 

Cons: lack of boot space 

I am driving my TATA NANO LX in Delhi. This car is amazing at this price point. its smiley face and
soft eyes in the front are very cool. Hats off to Mr. Ratan Tata for his efforts to make such a wonderful
car for a Aam Aadmi. It is very spacious from inside. Even five people can sit comfortably.I like the
turning radius the most. In cities like Delhi this car is very comfortable to ride in traffic.Its HVAC is very
effective, As the car is new,No problem with AC wid or widout load and on flyovers. the pickup is also
good. On a new car I go to 70km/h only and the stability was more than expected.The major drawback for
this car is its storage space. The engine is little bit noisy but in cabin there is no sound.

(2)-"My amazing Dream Car"

A review on Tata  Nano (Luxury) by anuj das .

Avg Model Rating:    User's Ratings for the car ( )

 Style        
Comfort
 Performance

Pros: Great looks, good mileage, wonderful car 

Cons: overall performance, include gear 

The total car is very good for middle class family as well as govt. service holders like us and who
is looking for a new an fantastic car. I think it is affordable for every middle class family and
more or less the lower class family who struggle for income. I always looking for different and
amazing thing because I am a magician as well as a Govt. employee. So, I found Nano just a
wonderful ....really wonderful.
 RESEARCH DESIGN
Research design is the arrangement for conditioned for the data collection and analysis of
the data in a manner that aims to combined relevance to research purpose with economy
in procedure.
We can conduct a descriptive research. This is descriptive in nature because study is a
focused on fact finding investigation in a well structured from and is based on primary
data.

RESEARCH METHODOLOGY
Research methodology is very important for the customer survey by questionnaire is the
effective instrument for the survey.

Composition of sample
Composition fundamental idea of sampling is that a small number of items or parts called a
“sample” composition of sample have includes types of information like research design,
collection sampling unit , sampling size, method of sampling & research instrument

Sampling method

For making report on customer survey in “TATA NANO” we have used non probability method
to convenience people meet and personnel interview about this car and asking them question by
questionnaire.

Size of sample

Size of sample will be 100 for conducting the survey of customer attitude towards TATA NANO
in present scenario

Area of survey:

Area of survey means from which the information is collected for the research so we have
selected different cities in our Gujarat like himmatnagar, kadi, idar, vadali, khedbramha.
Research instrument

Research instrument is the tools by which information is collected there are some types of
instrument like personnel meet with customer, questionnaire for the collection of the information
and survey the instrument in question.

DATA SOURCE

Source of data collection

Primary

 It is the first hand information collected directly from customers. The primary data is that,
which collected first time from the customers is.

 In my survey primary data have been used as a questionnaire to collect the data

Secondary

 The secondary data has been collected from the following modes, like:-
 Data through internet sources.
 Data through Journals
 Data through Newspaper
 Data trough Web Sites and map
 TENTATIVE CHAPTER PLAN

1. PREFACE
2. ACKNOWLEDGEMENT
3. EXECUTIVE SUMMERY
4.INTRODUCTION
-BACKGROUND
-OBJECTIVE
-PROBLEM
-SCOPE&LIMITATION
-DEFINING THE VARIABLES
-WHAT IS CUSTOMER ATTITUDE TOWARDS “TATA NANO”
-HISTORY OF “TATA MOTORS”
-ABOUT “TATA NANO”
-COMPARE WITH OTHER SMALL CAR
5. RESEARCH METHODOLOGY

-research design
-sources of data
-scope of the study
-sampling design
-sample unit
-size of sample
-data collection method
-data analysis method
6. FINDINGS
-data analysis
7. CONCLUSION
8. RECOMMENDATION/ SUGGESTION
9. BIBLIOGRAPHY
10. ANNEXURES
 A SHORT WRITE UP ON THE RESEARCHERS

Mr. Dhaval rami

“Believe in the impossible, hold tight to the incredible, and live each day to its fullest
potential.”

Complete a B.B.A. degree pursuing his MBA with specialization in Marketing in Faculty
of Management Studies, Grow More Foundation at Himmatnagar. Pursued his
SIP(Summer Internship Report) on “Potential Market Segment and Marketing Research
of Mobile Application” in Sufalam Technology Pvt. Ltd.

MR Mahesh desai

Compete a B. com degree pursuing his MBA with specialization in Marketing in Faculty of
Management Studies, Grow More Foundation at Himmatnagar. Pursued his SIP(Summer
Internship Report) on company , Somay tiles ltd.
 BIBILIOGRAPHY

Books:

1. Philip Kotler, Kevin Keller (2009),

Marketing Management (Thirteenth Edition)

2.Business Research Methods, 8th Edition, Tata McGraw-Hill

INTERNET:

1. Tata Motors' Official Website

2. Wiki - Tata Motors Ltd
3. http://www.docasi.com/doc/12248800/Grand-Project-on-NANO-Car