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A Dissertation Project On

Brand Positioning Strategies of TATA nano

Submitted by

Biswojit Prasad Swain

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Chapter Contents/Subject Page Number

1 BUSINESS OVERVIEW AND EXECUTIVE SUMMARY

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1.1 About Product 2-32 BRAND POSITIONING STRATEGY

2.1 Evolution

I. PROMOTION 4II. Communication strategy 4

III. Internet marketing program implementation

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3 POSITION AND PRODUCT POSITION 64 3CS OF POSITIONING

1) The target customer(Relevance) 72) The target competition (Uniqueness) 83) The Company or brand (Value

Proposition)9

5 TATA nano BRAND PROFILE- HOFESTEDE MODEL

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6 TATA nano Brand Identities - Alfer Kapferer Brand Prism

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7 FINDINGS 12

8 Conclusion 13

10 Bibliography 14

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MARKETING PLAN FOR TATA NANO

BUSINESS OVERVIEW AND EXECUTIVE SUMMARY

Established in 1945, Tata Motors is now one of the leading automakers in India. From 2001- 2006, Tata Motors flourished more and was listed in the list of top ten wealth creators in India. About five years ago, Ratan Tata, chairman of the tata group and tata motors first declared to introduce a car with a price level of Rs. 100,000. From then on, the one lakh car was one of the most talking points in India’s auto market. The introduction of the Nano received media attention due to its targeted low price. The Financial Times reported: "If ever there were a symbol of India’s ambitions to become a modern nation, it would surely be the Nano, the tiny car with the even tinier price-tag. A triumph of homegrown engineering, the $2,200 Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." The car is expected to boost the Indian economy, create entrepreneurial-opportunities across India, as well as expand the Indian car market by 65% [20]. The car was envisioned by Ratan Tata, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano). Tata Group is expected to mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide.

The Nano was originally to have been manufactured at a new factory in Singur, West Bengal, but increasingly violent protests forced Tata to pull out October 2008. Currently, Tata Motors is reportedly manufacturing Nano at its existing Pantnagar (Uttarakhand) plant and a mother plant has been proposed for Sanand Gujarat. The company will bank on existing dealer network for Nano initially. The new Nano Plant could have a capacity of 5,00,000 units, compared to 3,00,000 for Singur.

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PRODUCT- Tata Nano

The Tata Nano is BS-III* compliant and comes with an all-new 2-cylinder aluminum MPFI 624 cc petrol engine mated to a four-speed gear box and will be available in three variants. The Tata Nano is currently being manufactured at the company’s Pantnagar plant in Uttarakhand in limited numbers. The new dedicated plant, at Sanand in Gujarat, now ready with an annualized capacity of 350,000 cars.

THE THREE VARIANTSThe Tata Nano offers an incredibly spacious passenger compartment which can comfortably seat four adults. With a length of just 3.1 meters, width of 1.5 meters and height of 1.6 meters, the Tata Nano has the smallest exterior footprint for a car in India but is 21% more spacious than the smallest car available today. A high seating position makes ingress and egress easy. Its small size coupled with a turning radius of just 4 meters, makes it extremely maneuverable in the smallest of parking slots.

The three trim levels and their key features available at launch are:Tata Nano Standard (BSII* and BSIII*): The standard version, in three color options, single-tone seats, and fold-down rear seat;

Tata Nano CX (BSII* and BSIII*): In five color options, with heating and air-conditioning (HVAC), two-tone seats, parcel shelf, booster-assisted brakes, fold-down rear seat with nap rest;

Tata Nano LX (BSIII*): With the features of CX plus complete fabric seats, central locking, front power windows, body colored exteriors in three premium colors, fog lamps, electronic trip meter, cup holder in front console, mobile charger point, and rear spoiler.

Many of these features are not available on current entry-level small cars in the country.

PERFORMANCE & SPECIFICATIONSPerformance: The 2-cylinder engine – delivering 35 PS @ 5250 rpm and a torque of 48 Nm @ 3000 rpm – enables the car to have a top speed of 105kmph and negotiate inclines with a grade ability of 30%.Fuel efficiency: 23.6 km/liter certified by the Automotive Research Association of India (ARAI) under mandated test conditions, which is the highest for any petrol car in India. Emission: The high fuel efficiency, coupled with a low kern weight of 600 kg, ensures that the Tata Nano – at 101 gm / km – has the lowest CO2 emission amongst cars in India. The Tata Nano is BS-III* compliant and is BS-IV* ready. It is also available in BSII* norms.Safety: The Tata Nano’s safety performance exceeds current regulatory requirements – it passes the roll-over test and offset impact, which are not regulated in India. It has an all sheet-metal body, reinforced passenger compartment, crumple zones, intrusion resistant doors, besides mandatory seat belts and complies fully with existing Indian safety standards. Tubeless tyres – among which the rear ones are wider endowing extra

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stability – enhance safety.Warranty: 18 months or 24,000 km, whichever is earlier.

MODELS OF TATA NANO Tata Nano Standard Tata Nano Diesel Standard Tata Nano Deluxe Tata Nano Diesel Luxury Tata Nano Luxury Tata Nano Diesel Deluxe

VEHICLE SUMMARYName: NanoModel: StandardCar Body Type: HatchbackSegment: A SegmentTop Speed: 1050 to 60: 12.600 to 100: 0.00Fuel Consumption: Highway 26.00 kmpl.Fuel Consumption: City 22.00 kmpl.

ENGINE SPECIFICATIONSDisplacement: 624cc, 3 cylinder, rear engineEngine Type: PetrolMaximum Power: 33bhp@5500rpmMaximum Torque: 48Nm@2500rpm

DIMENSIONSLength: 3090 mmWidth: 1485 mmHeight: 1570 mm

OTHER SPECIFICATIONSSeating Capacity: 4Tyre Size: R12Suspension: McPherson strut & Independent coil springSteering: PowerBrakes: Front Disk, Rear DrumGears: 4 ManualGround Clearance: 180.00 mmKerb Weight: 580.00 kgs.Fuel Tank: 30.00

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BRAND POSITIONING STRATEGY

EVOLUTION:

IV. PROMOTIONTATA NANO is promoted mostly in leading newspapers in india. also they are advertising in magazines as well. when nano was first out locked in india, they advertise on the first full page of newspaper just to raise and turn the people face turn around towards their product. also they are advertising on hoardings on most viewable sites around the cities in whole country mainly in the places like bus stands, railway stations, main mall. Also when someone made the online booking, they are giving merchandise to them such as t-shirts, watches and phones.

In internet sector, they are promoting it through social websites by forming communities and groups on facebook, orkut and other social networking websites. They are also conducting online contests in which they excite the people to participate in it and upon winning they can drive away a nano.TATA NANO has recently sponsored a reality show in India. nano was the key sponsor for the program.TATA NANO is also co-partner in the cricket series with new Zealand. They gave tata nano to each man of the match in a tournament. Cricket is a famous sport in india ,and they did well by promoting the nano through this sport.NANO has started a new campaign in their show room. They are marketing nano in such a way that they are convincing people to test drive a nano and fill a simple form after the ride, and that form will go in a luck draw and if they won they can own a tata nano.

V. Communication strategy:

Tata has innovate communicated with whole work about their new product called tata nano in a effective way through· Media· Trade shows and auto shows· Internet· Mainly from word of mouth· Pre launching the Tata nanoThey have raised the curiosity all over world by just publishing that it is a 1 lakh car and world’s cheapest car.

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VI. Internet marketing program implementationInternet Marketing is one of the most important aspects of an effective website. InternetMarketing is the piece of the puzzle that joins your development efforts with actual sales.

a) Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online.

b) Social Media communities:- ○ Official Orkut community Members - 6,906. ○ Official Facebook Group Fans - 4,210 · Highest View Count on You Tube- 303,006 (it was just under 3, 00,000 when I began writing this post) · No. of Blog Posts - 61,664· TATA have a blog on the official website where they have been discussing quite interesting topics and generally maintaining an active community.

c) Advertising:- TV & other mass media will be less effective, thus too much money will not be invested in this regard . Mainly word of mouth advertising will get more emphasis.

Internet will be a major media for advertising. · Tata motors have created a special website for tata nano car. There are several listing in all the major car sites like autocar.com

d) SMS marketing – advertising through sending text message. Using the existing database of targeted customer.

e) Trade shows - A trade fair (trade show or expo) is an exhibition organized so that companies in a specific industry can showcase and demonstrate their latest products, service such as auto expo and auto fair.

f) Program launch – special launching of nano was done in auto expo held in india last year creating a hype was good medium

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POSITION AND PRODUCT POSITION:-

TATA nano Compared to Other cars in its Category-

Brand Model

Variant Enginecylinder

CC Power

AC Price(Lakhs)

TATA NANO

BASIC 2 623 35 NO 1.3

TATA INDICA XETA GLE 4

119365.3 YES 2.82

MARUTI 800 STANDARD 3 796 37 NO 1.86

MARUTI OMNI PETROL 3 796 47 NO 2.23

MARUTI ALTO STANDARD 3 796 35 NO 2.26

HYUNDAI SANTRO

GL 4 1086 62 NO 2.21

CHEVROLET

SPARK STANDARD 4 995 63 YES 2.61

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3CS OF POSITIONING:-

4) The target customer(Relevance)

MARKET SEGMENTATION

GEOGRAPHIC:1.Region INDIA2.City All Over India3.Rural And Semi Urban Area Rural villages with a population over

10,000; semi urban Areas; small towns with population between 20,000 and 50,000

DEMOGRAPHIC:Age >18Family Size > 5Gender Male or FemaleIncome > 10,000/monthOccupation Student, Govt Service, Private Service,

NGO, Any Other.PSYCHOGRAPHIC:Lifestyle Culture oriented, Sports oriented, Outdoor

orientedPersonality Compulsive,Gregarious,Authoritarian,Ambi

tiousBEHAVIORAL:Occasions Regular, SpecialBenefits Quality,Service,Economy,SpeedUser Status First time user, Regular userUser Rate HeavyLoyalty Status Strong, AbsoluteReadiness Stage Aware, Informed, Interested, DesirousAttitude towards Product Enthusiastic, Positive

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5) The target competition (Uniqueness)

I. TATA NANO is offering many services such as PREFERRED FINANCIERS

Tata Motors has entered into agreements with 15 preferred banks/NBFCs for the Tata Nano booking loan product. The preferred financial institutions are: State Bank of India, Tata Motor Finance, State Bank of Patiala, ICICI Bank, State Bank of Travancore, State Bank of Mysore, State Bank of Hyderabad, State Bank of Bikaner and Jaipur, State Bank of Indore, Axis Bank, Punjab National Bank, Federal Bank, Corporation Bank, Indian Bank, and the Central Bank of India. The updated list and details are available at www.tatanano.com .

II. MERCHANDISE AND ACCESSORIES

The Tata Nano comes with an attractive range of accessories and merchandise. The range of merchandise includes a Nano phone, Nano watch, T-Shirts, etc. and will be made available online at www.tatanano.com as well at all Tata Motors Passenger Car dealerships, Westside & Croma outlets. Tata Indicom will also market the Nano phone and Titan the Nano watch.

Accessories include alloy wheels, body kits, decals etc., to customize the Tata Nano to individual tastes. Details are available at www.tatanano.com .

III. Price

Tata initially targeted the vehicle as "the least expensive production car in the world" —aiming for a starting price of 1,00,000 rupees or approximately US$2500As 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· 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

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· raising the price of the carVariants

Models Ex-showroom prices

Nano Standard Rs 1,23,360

Nano Deluxe-Cx Rs 1,51,360

Nano luxury-Lx Rs 1,72,360

6) The company or brand (Value Proposition)

Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, dreamt of producing a safe, affordable Car for the common man. Finally after the wait of five years, crossing all financial and technological barriers, Ratan Tata kept his promise and unveiled Tata 'Nano' on 10th January 2007, at the 9th Auto Expo 2008 in New Delhi. Tata Nano, cool &

smart, launched by Tata Motors is world's cheapest Car with a price tag of $ 2500

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SYMBOLS For Tata Motors, the car - christened

the Nano, because it is a small car with high technology

ROLE MODEL Mr. Ratan Tata, Chairman of Tata group

RITUALS

Mr Ratan Tata rolls the window down and talks about the vision and

conviction, the innovation an Improvisation and the leap of faith

that went into creating the People's Car.

VALUES Price, mileage, style, brand name, all

weather vehicle, first innovation. safety performance

TATA nano BRAND PROFILE

HOFESTEDE MODEL

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FINDINGS

PHYSIQUE Car, Innovative Features,Brand Name

CULTURE Target People: Student, Govt Service,

Private Service, NGO, Any Other Product: technology savvy ,Iconoclastic

PERSONALITY Culture oriented, Sports oriented,

Outdoor oriented

RELATIONSHIP Benifits:

Quality,Service,Economy,Speed

REFLECTION Buyer: First time user,

Regular user

SELF IMAGE Enthusiastic, Positive

TATA nano Brand Identities Alfer Kapferer Brand Prism

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Who am I: Tata nano was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car".

What am I: Benefit Related Positioning-

Engine Capacity Bosch 624 c.c. twin cylinder Low capacity, Lighter, sufficient with better Power Rear Engine to reduce the transmission length using a balancer shaft. 4 Speed Manual Gear Box All Aluminum Engine Higher thermal conductivity than cast iron, Lighter and so better mileage Engine Management System by Bosch Superb control over emission and smooth acceleration. Dimensions L: 3.1m, W: 1.5m, H: 1.6m Less length but more inner cabin space due to height. Comfortable leg room. Independent Front & Rear Suspension McPherson Strut in Front & Coil spring & trailing arm in rear. Better ride than Maruti 800.Single piece ribbed steel body with safety features such as crumple zones, intrusion resistant doors, seat belts, strong seats & anchorages. Safety requirements are adequately met. Single Wiper in place of two. Cost effective yet functionality is met Tube less Tires Weight reduced by 2 Kg. Cost reductions 200 Rs. And in line with modern vehicles Instrument console in the centre Elegant to look at and can be used both in Left Hand & Right hand version. THE CAR COSTS Rs 1 lac

For Whom am I:

Someone who is looking to buy a car but cannot afford much price. A students who want to go college, tuition instead of bike etc. Someone who depends on second hand car. For a house wife who can buy a car with her own savings. Someone who depends on scooter.So Nano is not a basically a luxury cars but it can fulfilled the all capacity for middle class people.

Why Me: People 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.

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CONCLUSION

The introduction of the Nano received media attention due to its targeted low price. The car was envisioned by Ratan Tata, Chairman of the Tata Group and Tata Motors, who has described it as an eco-friendly "people's car". Nano has been greatly appreciated by many sources and the media for its low-cost and eco-friendly initiatives which include using compressed-air as fuel and an electric-version (E-Nano).Tata Group is expected to mass-manufacture the Nano, particularly the electric-version, and, besides selling them in India, to also export them worldwide. Only 35,000 Nanos have been sold as of June 2010, which is less than expected.

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BIBLIOGRAPHY: -

HARSH V VERMA. Brand Management, 2nd Edition

SUBROTO SENGUPTA Brand positioning, Second Edition

WEBSITE

www.google.co.in

www.tatamotors.com

www.tatanano.com