Demand Forecasting on Tata Nano

Submitted by- Aman Mahajan

About the Organization

Tata Group is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India.[3] It is one of the largest conglomerates in India by market capitalization and revenue. It encompasses several primary business sectors: chemicals, consumer products, energy, engineering, information systems, materials, and services. Tata Group has operations in more than 80 countries across six continents and its companies export products and services to 80 nations. It comprises 114 companies and subsidiaries in eight business sectors,[4] 27 of which are publicly listed. 65.8% of the ownership of Tata Group is held in charitable trusts.[5] Companies which form a major part of the group include Tata Steel (including Tata Steel Europe), Tata Motors (including Jaguar Land Rover), Tata Consultancy Services, Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata Power, Tata Communications, Tata Sons, Tata Teleservices and the Taj Hotels.

About the Product Tata Nano

The Tata Nano is a city car manufactured by Tata Motors. Made and sold in India, the Nano is the cheapest car in the world today. Before it went on sale a price of 1 lakh (US$2,000), was widely touted. Since its 2009 debut, the price has increased, and, while the Nano remains the lowest cost four-wheeled passenger vehicle in India, it's significantly more expensive than a motorcycle, a popular means of cheap transport in the country.

Demand Forecasting
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 wants to become: no 1 in automobile industry (both large and small) and want to provide everyone with an affordable car of their dream.

Tasks Involved

Discussion with decision maker Interview with experts Secondary data analysis Qualitative Research
In qualitative research we performed focus group in which we took a sample of 10 respondents. Who had a previous driving experience, driving licence, knowledge about nano, and were from different cultures, regions and of age groups between 20-25 yrs. We made them aware about the topic and collected their views about nano.

Question 1 will the conversion of nano into a taxi have an impact on its sales?
21%

79%

Conclusion- Most of the respondents believe that there will be no impact on sales while others disagreed on this.

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

29.25%

70.75%

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.

Question 3 will Tata be able to maintain the price of Nano in future if there is a hike in cost of raw material?

25%

75%

Conclusion- Most of the respondents believe that the rise in the price of raw materials will lead to a increase in the price of the car while few believe in Ratan Tatas statement that Promise is a Promise but still all the respondents believe that there will be no impact on sales

Question 4 Will our infrastructure be able to sustain the traffic conjunction?

31.25%

68.75%

Conclusion- Most of the respondents believe that development in indian infrastructure will be able to sustain the voloume of traffic while others believe that there will be traffic conjunctions. Despite of the traffic conjunctions they will still prefer to purchase Nano.

Question 5- Will the protests by farmers have an impact on its sales?

12.5%

87.5%

Conclusion- most of the respondents believe that protests by farmers in singur is for a short term. It is a political issue which does not seems to affect the sales but quite a few do not believe this way. Although the entire respondents feel that Tatas Nano project in singur will lead to the economic development of farmers.

Question 6- Whether or cost is the top priority while buying Nano?

12.5%

87.5%

Conclusion- Most of the respondents give safety as their top priority while purchasing Nano and rest of them think that still Nano will be safer than two whealers.

Survey Results and Analysis

The first thing about Nano which comes in mind of all age groups is compact small and economical. From the research it came out that most of the respondents both male and female of all age groups consider price as major purchasing factor while on other hand there are many who consider all the factors- price, mileage, design and interior space. But there is a degree of variation in these preferences.