Marketing Research

“NANO”
Market Research Problem
• Will the conversion of ‘Nano’ to a taxi affect brand image and
consequently sales?
• Will initial demand may lead to stock out.
• Whether the prices of ‘Nano’ will be sustained over a period of
time with the economic changes in raw material price rise?
• With the hike in sales of ‘Nano’, whether the infrastructure of the
country will be able to sustain the volume of traffic?
• Will the Protest of farmers against Nano plant in Singur affect the
sale?
• Will General Perception of brand “TATA” in small car segment
affect the sale?
Environmental context of the problem
• PAST INFORMATION AND FORECAST
– Tata is one of the oldest companies fighting to establish its
position in small car segment.
• RESOURCES AND CONSTRAINTS
– Tata has wide resources in terms of infrastructure and money. But
the rising price of steel in the world market is major concern.
• OBJECTIVE
– Tata want to become no: 1 in automobile industry (both small
and large) and want to provide everyone with an affordable car of
their dream
• BUYER BEHAVIOUR
– In India the market for four wheeler is huge. Demographic
feature is also favourable for India
Environmental context of the problem
• LEGAL ENVIRONMENT
– With the increase in volume of traffic there will be pollution
problems and also will increase the accidents.
• ECONOMIC ENVIRONMENT
– As the GDP of India is rising the living standard of consumers is
also rising and now their purchasing power is also increasing. So
there is more disposable income.
• MARKETING AND TECHNOLOGICAL SKILLS
– Tata has expertise in marketing and technology. Bosch developed
623.6cc multi point fuel injection system engine, which will give a
performance of 20kmpl. The car has its engine at rear which
increases the inner space of the car and it also has an air
conditioner with heater.
Hypothesis
• Conversion of ‘NANO’ to a taxi will not affect the
brand image and sales.
• NANO is safe for driving.
• Hike in price of NANO will not effect the sale.
• People prefer to purchase the NANO instead of
two wheeler.
• People can wait for NANO for few months.
Methodology
• Data collection
– Primary Source
• Potential Customers
• Those who have good knowledge of Nano
– Secondary Source
• Internet
• Magazines and Newspapers
• Research Instruments
– Questionnaire
– Interview with experts
Focus group
Focus group study with 10 respondents
Group Size - 10
Time Duration - 1 hour
Characteristics of Respondents
All have good driving experience
Between age group 20-40
All have a Good Knowledge of Nano
1- Will the conversion of Nano into a taxi have an impact on its
sales?
Conclusion- Most of the
respondents believes that there
will be no impact on sales while
others disagreed with this.

2- Can the company face the problem of stock out? Will it have
any impact on sales?

Conclusion- A majority of the

respondents believe that initially
there will be a waiting on the
purchase of Nano because of the
increase in number of orders and
anyhow it will not affect the sales.
3- Will Tata be able to maintain the price of Nano in future if
there is hike in cost of raw materials?
Conclusion- Most of the respondents
believe that the rise in the price of raw
material will lead to a increase in the
price of the car while few believes in
Ratan Tata’s statement that “ promise is a
promise” but still all the respondent
believe that there will be no impact on
sales.
4- Will our infrastructure be able to sustain the traffic
conjunction?

Conclusion- Most of the respondent believe

that the development in Indian
infrastructure will be able to sustain the
volume of traffic while the others believe
that there will be traffic conjunctions.
Despite of the traffic conjunctions they will
still prefer to purchase Nano
5- Will the protest by farmers have an impact on its sales?
Conclusion-Most of the respondents felt that the
protest by farmers in Singur is for a short period
of time. It is a political issue which does not
seems to affect the sales but a quite a few do not
believe in this way. Although the entire
respondents feel that Tata’s Nano project in
Singur will lead to the economic development of
farmers.

6- Can the brand name “Tata” (which is known for heavy vehicles)
have an impact on its sales?

Conclusion- Majority of the respondent

believe that the brand name Tata carries a
good image in the market while others
believe that Tata is not successful in small
car segment which might affect the brand
name to an extent.
7- Can upcoming competition (Renault, Bajaj) have an impact
on its sales?
Conclusion- Most of the respondent
believe that Nano is the pioneer in
small car segment and backed by
strong brand name Tata. It will be able
to sustain the upcoming competition
from rivalry entering the same market

8- Whether safety or cost is the top the priority while buying

Nano?
Conclusion- Most of the respondent give
safety as there top priority while
purchasing Nano and rest of them think
that still Nano will be safer than two
wheelers.
An over view or sum of all the conclusions of the
focus group :
QUESTIONNAIRE OF TATA-NANO

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

........................................................................................................................
........................................................................................................................
..
2. Instead of purchasing a Bike, will you prefer to go for the NANO?
1. Yes 2. No 3. Can’t say

3. Which feature of NANO attracts you most, that inspires you to go for
NANO?
1. Price 2. Design
3. Mileage 4. Interior space
5. All the above 6. Can’t say
QUESTIONNAIRE OF TATA-NANO
4. Which colour of NANO would you prefer?
1. Red 2. Blue
3. White 4. Yellow
5. Silver 6. Other, Specify……............

5. For what purpose would you like to use NANO?

1. Will offer it to your children to use it in place of a two wheeler.
2. Will use as family car for shopping and travel.
3. Will prefer as a taxi.
4. Would like to offer as gift.
5. Any other, specify.................................
QUESTIONNAIRE OF TATA-NANO
6.Do you think NANO is people's car
1. Yes 2. No 3. Can’t say
7. Will you recommend NANO to your friends and relatives?
1. Yes 2. No 3. Can’t say
8. Which small car would you prefer to buy?
1. Maruti 800 2. Tata NANO 3. Other………………..
9.How long can you wait for NANO?
1. 1 months 1. 1-2 months 2. 2-4 months
3. 4-6 months 4. Can’t wait
10.If the price of NANO rises, would you still purchase it?
1. Yes 2. No 3. Can’t say
QUESTIONNAIRE OF TATA-NANO
11.Will Tata be able to maintain the price of nano in future if there is hike in
cost of raw materials?
1. Yes 2. No 3. Can’t say

12.How will you feel if NANO is used as a taxi?

1. Embarrass 2. Don’t care 3. Can’t say

13.Will there be traffic problem with the introduction of Nano on Indian

roads?
1. Yes 2. NO 3. Can’t say

14.Can you trust NANO for safety?

1. Yes 2. No 3. Can’t say
 SUGGESTIONS

1. Tata should increase the production of NANO so

that customers don’t have to wait much for their car,
as they feel urgency for NANO.

2. As people believes that NANO is people’s car, and will

be affordable by common men which was a dream
earlier for them. So the price should be kept stable
in future with the increase in price of raw material.
Otherwise it will be out of their reach and people
believe in Mr. Ratan Tata’s statement of- “Promise is
a promise”.
 SUGGESTIONS

3. Tata should give exchange offer against a two/four

wheeler so that those consumers can be easily
converted to NANO users.

4. Safety measures can be enhanced, because people

consider it as their prime concern while purchasing.

5. An option for more customization should be

available.
Group No: 7
Abhijeet Mishra
Ampili C. Nair
Aravind TU
Chinnu Prasad
Biswas B Chandran
Krishna Raaj