Post on 22-Nov-2014
TATA NANO (THE SUCCESS
STORY)
REVIEW ON TATA GROUP
Founded in 1868 by Jamsetji Tata Present Chairman – Ratan Naval Tata Operates in seven different sectors –
Engineering, Materials, Energy, Services, Consumer products, Chemicals and IT.
Empowers 96 companies across 6 continents
Human assets – 6,50,000 in number Total Revenue 2008-09 – 325,334 Crore
TATA’S TALE OF PAST GLORY
Brand Finance – valued the Tata Brand at $9.92billion ranked 51st among world’s 100 brands
Reputation Institute ,USA – ranked
11th as world’s most reputable
companies Tata motors -6th largest commercial
manufacturer in the world and
largest Indian automobile companies In 2004 – Tata Motors – listed as
1st Indian manufacturing company on
New York Stock Exchange 2004 – Acquired Daewoo motors 2005 – Acquired 21% stake in Hispano Carrocera SA In May,2008 –Acquired the British automotive icons
Jaguar and Land Rover from Ford Motor Co.
SCOPE Automobile ownership in India – 8 to 25 of 1000 people. Country Motor Vehicles per 1,000
United States 765
Australia 619
Canada 563
Germany 546
Japan 543
United Kingdom 426
India 12
China 10
In 2007 – India’s two wheeler market- second largest globally – 8 million units sold
In 2011 – production forecasted upto 18million units
Cost – INR 37,000
Vehicle Gas mileag
e(km/liter)
Cost (INR)
Market Speed (kph)
Moped, mokick, orstep-thru
55–70 15,000–40,000
Teens, and elderly
40–45
Scooterette/mini
55 20,000–25,000
City riders, students
65
Scooter 40-60 25,000–50,000
women,city riders
70 and up
Motorcycle Upto 70 35,000–75,000
men 80 and up
Enfields Diesel Bullet
66 65,000 Seekers of “India’sHarley-
Davidson”
80 and up
CONT.
Three – wheelers Bajaj Auto – dominated the Passenger – carrying three wheeler
market “autorickshaws” Faced competition from Tata Ace and
Piaggio’s Ape truk
PRODUCT AND ITS FEATURESTATA NANO
10 January,2008 – Tata Motors unveiled its “People’s car” at 9th Auto Expo in New Delhi
Cheapest Car – INR 1Lakh Launched in two versions – two cylinder
gasoline powered and diesel version World’s most fuel efficient cars – 22Km/L
in city and 26Km/L on Highways Smallest and Comfortable car – 21%
greater seating room than Maruti 800
FEATURES Air conditioning Power steering Power windows A Tachometer Dual windshield wipers Streamlined modular design Easy to assemble – car component parts could be
built at separate facilities and shipped to local manufacturer for assembly
( Manufacturing plants in Jamshedpur, Pune and Lucknow and assembly operations in Malaysia, kenya , Bangladesh, Spain, Ukraine, Russia and Senegal. Globally caters to Europe, Africa, Asia, Middle East and Australia)
Plan to setup three additional plants- to sell 1 million units annually
TARGET AUDIENCE
Middle class families – more comfortable, safe and spacious journey
College going students People owning second hand car People depending on public transport People owning two – wheelers (If Nano Manages to convert 10% of two wheeler market, it
will have 50% of car market share – lead to 20% reduction in prices of two wheeler and 35% reduction on second hand cars)
PRICE
World’s cheapest car Payable cost – INR 1 Lakh
+ 12.5%value added tax
+ charges (road and transportation
tax) Research report by the Credit Rating
and Information Services of India Ltd.
– Expand the number of
households that can afford a car
by 65% On-road price – INR 1.3 Lakh Can be afforded by families with 2Lakh Income level
PLACE
INDIA – Jamshedpur, Pune and Lucknow World’s third largest economy by 2020 2005-06 – largest and fastest growing car markets in
world Passenger car market – 25% annually Passenger vehicle exports – 12.7% annually Exports to Asia and Africa – 8,50,000 units in 2005-06 India exports
Passenger cars – 1,70,000 units
Commercial vehicle – 40,000 units
Three wheelers – 77,000 units
PROMOTION
World’s cheapest car – INR 1.3 Lakh World’s most Fuel Efficient car Attractive Design and great looks – appealing
to middle class families Provide a much more safer and comfortable
transportation to people dependent on two wheelers, second hand cars or Public transports
DEALERS Cars sold via dealer networks ( sales
volume depends on extent of network and sales per dealer)
Manufacturer Number of
DealersSales (Units) per Dealer
Maruti 580 1,275
Hyundai 225 800
Tata Motors 200 1000
Ford 125 225
GM 100 600
Tata’s dealer margins – 4% to10% Profit margin received by dealers –
USD75 for the USD2,500 Tata dealer’s satisfation – Dealers
increased the number of service stations and outlets in few months
COMPETITORS Six major players in passenger vehicle
segment Passenger Vehicles - Percentage of
Market Share Maruti Udyog - 52.2 Hyundai Motors India Ltd. - 19.2 Tata Motors - 16.6 Honda Siel Cars India Ltd. - 4.4 Ford India Pvt. Ltd. - 1.9
MARUTI 800 AND ALTO - THE BIGGEST COMPETITOR
Closest price competitor –
USD 5000
Biggest brand name
Highest market share
OTHER COMPETITORS
Two wheelers
• Bajaj Auto, Hero Honda, TVS Motors, Yamaha Motor and Kinetic
Three wheelers and Public Transport
• Tata Ace
DOWNTURNS In stock price – from USD 18,60/share (Sept 2007) to
USD 9,53/share (Sept 2008)
In mid-2008- increase in cost of materials used in car assembly – from 13% to 23%
Protest from farmers and govt put on hold the bulk manufacturing of Nano before its launch
Declared “Environmental unfriendly”
CONCLUSION Has given a new definition to low price,
affordable, safe and comfortable transportation
Features such as low price and small price has lured the middle class families and college students who could only afford a two wheeler or a second hand car
Catered to the needs of Population who were only dependent on public transport
Broaden the spectrum and increased the choices in small cars segment
In addition to all these features a focus on the safety and emission standards should be there to make the car environmental friendly