BUSINESS ENVIRONMENT

TOPIC : TATA NANO- ENVIRONMENTAL

ANALYSIS

• SUBMITTED TO: • SUBMITTED BY:

DR. SADHANA PATHANIA UTKARSHA

ROLL NO: 76619
 THE TATA GROUP: COMPANY HISTORY

• FOUNDED BY JAMSHEDJI TATA IN 1868 AS TRADING COMPANY.

• IT IS AN MULTINATIONAL CONGLOMERATE MANUFACTURE OF AUTOMOBILES, AIRPLANES
AND OTHER PRODUCTS.
• FIRST STEEL MILL, POWER UTILITY, LUXURY HOTEL AND INTERNATIONAL AIRLINE.
• ONE OF THE OLDEST INDUSTRIAL GROUPS IN INDIA.
• TATA GROUP NOW STANDS ON A MARKET CAPITALISATION OF US$318 BILLION (2021)
• COMPANY SEEN AS INSPIRED TRUST AND A STRONG COMMITMENT TO ETHICS.
 INTRODUCTION OF TATA NANO

• IN JANUARY 2008, TATA MOTORS INTRODUCED TATA

NANO, DUBBED AS THE “PEOPLE’S CAR” AND ALSO
KNOWN AS THE WORLD’S CHEAPEST CAR.
•  THE CAR WAS LAUNCHED IN MARCH 2009 WHICH
CREATED A SIGNIFICANT IMPACT IN THE INDIAN
AUTOMOBILE MARKET.
• THE MAIN TARGET GROUP OF CUSTOMERS FOR TATA
NANO ARE THE LOWER AND MIDDLE INCOME FAMILIES
IN INDIA, MANY OF WHOM RESISTED PURCHASING FOUR-
WHEELERS MAINLY DUE TO THE PRICE AFFORDABILITY
AND MAINTENANCE COST. LAUNCHING TATA NANO GAVE
AN OPPORTUNITY FOR THESE GROUPS TO PURCHASE A
CAR WITHIN THEIR MEANS.
 SPECIFICATION OF TATA NANO

 THE STANDARD VARIANT OF THE CAR HAS A DEALER

PRICE OF 1LACKH RUPEE AND CHEAPEST CAR IN THE
WORLD.
 A FOUR-DOOR CAR THAT CAN SEAT 4-5 PASSENGERS.
 IT CONFORMS TO ALL THE EMISSION STANDARDS AS
WELL AS THE OFFSETS AND SIDE CRASH NORMS
FOLLOWED INTERNATIONALLY.
 TINY 12 INCH WHEELS NEED JUST 3 LUG NUTS.
 THE POWERTRAIN WAS A 624CC SOHC PETROL, REAR ENGINE
AND REAR-WHEEL CAR WITH A MANUAL GEARBOX THAT
GAVE A VERY COMMENDABLE 25 KILOMETERS PER LITER.
BUT, THE FOUR-DOOR HATCHBACK’S KEY SELLING POINT
WAS ITS PRICE.
VISION AND MISSION APPROACH TOWARDS TATA NANO PROJECT

• THE DRIVING IDEA BEHIND THE NANO HAS BEEN GROUP CHIEF RATAN TATA’S VISION OF
PROVIDING A SAFE AND COMFORTABLE MEDIUM OF TRANSPORT TO MILLIONS OF INDIAN
FAMILIES THAT USE TWO-WHEELED VEHICLES TO TRAVEL WITH THEIR FAMILY (SPOUSE AND
CHILDREN) OF 4-5 PERSONS UNDER EXTREME WEATHER CONDITIONS IN SUMMER, WINTER AND
DURING MONSOON.
• THE TARGET CUSTOMERS FOR TATA NANO WERE LOWER AND MIDDLE W FAMILIES, WHO ASPIRE
TO UPGRADE TO 4-WHEELERS FROM BEING 2-WHEELERS USERS.
• TATA MOTOR’S TRIED TO FOCUS ON THE PRICE FACTOR AND DEVELOPED “PRICE POSITIONING
STRATEGY” FOR TATA NANO.
• TATA NANO MISSION WAS TO PROVIDE CAR TO THE PEOPLE AT THE MOST AFFORDABLE PRICE
AND POSITION ITSELF AS MOST CHEAPEST CAR IN THE WORLD.
• FORMER CHAIRMAN OF TATA, Mr. RATAN TATA, HAS ENVISIONED TATA NANO TO BECOME A
“PEOPLE’S CAR.”
 AWARDS AND RECOGNITION WON BY
TATA NANO
AWARDS YEAR

• INDIAN CAR OF THE YEAR AWARD 2009

• BUSINESS STANDARD MOTORING 2010

INDIAN CAR OF THE YEAR
• GOOD DESIGN AWARDS 2010
• GOLD PRIZE IN THE BEST NEW PRODUCT 2010
SEGMENT
• BEST CAR ADVERTISEMENT OF THE
2011
YEAR
 WHY DID TATA NANO FAILED?

FAILURE IN MARKETING:
• TATA NANO PROMOTES ITSELF AS THE LEAST EXPENSIVE VEHICLE.

• PURCHASING A VEHICLE IS IDENTIFIED WITH ECONOMIC WELL-BEING AND DISTINCTION IN THE PUBLIC ARENA.

• "CHEAP" AND "LAKHTAKIYA" USED IN TATA NANO'S ADVERTISING FOR ADVANCEMENT AND SHOWCASING ALL OVER
INDIA DISTURBED ITS IMAGE.

• THE ENGINE WAS AN ISSUE.

• THERE WAS A BUZZ IN THE UNIVERSAL MEDIA, "WHAT IF NANO BECOMES SUCCESSFUL? IT WOULD MEAN AN END TO
THE SECOND-HAND ”CAR MARKET."
POOR BUILD QUALITY:

• ONE OF THE MOST SIGNIFICANT PROBLEMS WITH THE NANO WAS ITS SAFETY RATING. THE MANUFACTURER
EXPECTED THE NANO TO RECEIVE FOUR STARS IN THE EURO NEW CAR ASSESSMENT PROGRAM (NCAP) CRASH
TEST. BUT, WHEN ALLGEMEINER DEUTSCHER AUTOMOBIL-CLUB (ADAC), A GERMAN AUTOMOBILE CLUB, TESTED
IT IN 2014, IT FAILED MISERABLY. THE NANO LACKED AIRBAGS AND PROPER ADULT PROTECTION. IT ALSO DID
NOT MEET BASIC UN SAFETY REQUIREMENTS AND WAS NOT AS SAFE AS TATA HAD CLAIMED AND EXPECTED IT
TO BE.

• ON TOP OF THAT, SEVERAL INCIDENTS WERE REPORTED IN WHICH THE NANO CAUGHT FIRE FOR MYSTERIOUS
REASONS. THE COMPANY CLAIMED THE CAUSE WAS FAULTY FOREIGN ELECTRICAL EQUIPMENT LINKED TO THE
EXHAUST.

• HE NANO WAS ALSO VERY LIGHTWEIGHT WHICH MADE IT A VERY BAD CHOICE FOR THE USUAL INDIAN ROADS
WHICH ARE NOT ALWAYS SMOOTH AS SILK. THAT ALSO MEANT THAT IT FELT UNSAFE TO DRIVE BECAUSE OF THE
SIMPLE LACK OF BULK.

• TO MAKE MATTERS WORSE, THEY REFUSED TO RECALL THE VEHICLES WITH DEFECTIVE EQUIPMENT AND INSTEAD
EXTENDED THE WARRANTY PERIOD TO FOUR YEARS, WHILE OFFERING TO REPLACE THE SUPPOSEDLY FAULTY
PARTS IN THOSE ALREADY SOLD. BAD CUSTOMER SERVICE ALSO ADDED TO MAKING THE TATA NANO A FAILURE.
NON-EXISTENT PUBLIC RELATIONS

• THE AUTOMAKER’S BAD PUBLIC RELATIONS DID NOT IMPROVE

MATTERS. THE COMPANY SIMPLY IGNORED THIS CRUCIAL ASPECT
AND, WHILE EVERYONE FOCUSED ON HOW MANY UNITS CAUGHT
FIRE, NO ONE TALKED ABOUT HOW MANY WERE RUNNING ON
THE ROADS JUST FINE. THAT ALSO CONVINCED THE GENERAL
PUBLIC THAT THE TATA CAR WAS SO CHEAP BECAUSE THE

COMPANY CUT CORNERS IN THE MANUFACTURING PROCESS.

• WHILE THIS WOULD NOT HAVE BEEN A MAJOR ISSUE ON

ITS OWN, WHEN COMBINED WITH BAD MARKETING AND
ADVERTISING, IT BECAME ONE OF THE BIGGEST REASONS
FOR FIRST-TIME CAR BUYERS TO AVOID THE NANO.
 RECOMMENDATIONS
• TATA NANO SHOULD BE MARKETED AS NICHE SEGMENT PRODUCT RATHER THAN EVERYONE’S PRODUCT.
• ONE THING THAT TATA GOT TOTALLY WRONG IS INDIAN MINDSET REGARDING LOW COST MODEL, FOR
MAJORITY INDIANS, CAR IS NOT A NECESSITY OR ABOUT CONVENIENCE, FOR THEM IT IS A LUXURY AND A
SENSE OF PRIDE IS ATTACHED TO IT
• RATHER THAN MAKING IT POOR PEOPLE’S FIRST CAR, MAKE IT AT RICH PEOPLE’S FIRST CAR.
• IT REQUIRES A CHANGE IS AN ENGINE, RATHER THAN HAVING 750 CC ENGINE, EQUIP NANO WITH POWERFUL
HIGH CC ENGINE PROBABLY VISTA’S ENGINE CAN BE USED HERE THAT WILL SAVE LOT OF COST ALSO. 
• MAKE IT TWO SEATER CAR REMAINING SPACE SHOULD BE USED FOR SAFETY FEATURES AND FOR BOOT
SPACE. THIS WILL ALSO INCREASE LOT OF BOOT SPACE. SO EVEN IF IT IS A SMALL CAR IT WILL HAVE VERY
POWERFUL ENGINE, INTERNATIONAL LEVEL OF SAFETY STANDARDS AND UNMATCHED BOOT SPACE, THUS
THREE PRIMARY CONCERN OF CONSUMER IS BEING TAKEN CARE OF.
• PROMOTING NANO IN FEW CITIES WILL SIGNIFICANTLY REDUCE THE COST OF MARKETING AS WELL. APART
FROM THIS TATA CAN THINK OF PROMOTING NANO IN TOURIST SPOT LIKE GOA, DEHRADUN, SHIMLA ETC
TATA NANO CAN BE USED THERE FOR RENTALS IT WILL BE THE ONE OF THE UNIQUE WAY TO PROMOTE IT.
Thank you