Presentation-Nano-29 Jan-01_v2
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Transcript of Presentation-Nano-29 Jan-01_v2
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TATA - a Revolutionary
ITM- XMBA Batch 34
- Terence Fernandes
- Bhavesh Bhanushali
- Philip Thankan
- Wilson Monteiro
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TATAGROUP
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CATEGORY - AUTOMOBILE
Automobile
PassengerCars
Trucks
CommercialPassengerCarriers
Utilityvehicles
DefenseVehicles
2 Wheelers
3 -Wheelers
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KEYAUTOMOBILE PLAYERS
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MARKET SHARE
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PASSENGER CAR - MODELS
Indica
Vista
V2
Xeta
V2
Indigo
Manza
CS
Marina
XL
Nano
Basic
CX
LX
FIATCars
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Nano is often used to mean small
Launched Nano on March 23, 2009.
Bookings started on April 9 to April
25
Launched using a tag line as
Peoples Car
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TATANANO TARGET SEGMENT
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NANO LXVS OTHER CARS
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SALES FIGURES FOR NANO
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NANO BRANDING 5 LAWS
Law of the word- The tag line used a Peoples Car meant anybody can
own it. A car for everyone.
Law of Publicity- 1 lakh price tag generated lot of curiosity about
its possibility and hence gathered media attention
Law of Credentials-Low Cost Car
-High Fuel Efficient
-Small Car
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NANO BRANDING 5 LAWS
Law of Siblings
Tata Nano Electric
Tata Nano Diesel
Law of Advertising
Achieved lot of publicity due to low cost tag. To maintain the
interest and to keep cost low, Tata decided innovative way of
marketing
Advertisement on Radio
News paperWeb
After burning incidents, this strategy was modified and
now advertisment is done on TV.
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TATANANO PROBLEM & CHALLENGES
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TATAS RECOVERY PLAN
Tata appointed group of experts from foreign automobile industry toreview NaNo designs. Experts did not find major faults and suggested
few changes.
Tata implemented suggestions in new models and recalled 30,000
Nano cars for fitting security kit as suggested by experts.
All the NaNo car customers will get security kit free if they insisted.
Tata organised 12000 km rally from Sanand plant in gujarat. Three
groups of 3 Nana cars each travelled to North, South and East. Rally
was successful with no problems reported.
Offered 4 yrs 60000Km warranty.
Comprehensive maintenance contract at Rs 99 / month
100% finance at 5% interest rate is also available.
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Strengths:
Low Price & stylish
High fuel effeciency
Brand name,
First innovation 35 Patents for innovation
Environmental friendly- Green House Effect
Variometric Gear System- Magnifies Torque
Tested successfully for crumple zones
SWOT ANALYSIS
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Weaknesses:
Fiber body,
Low suspension power,
Low engine capacity,
Light vehicle, Not suitable for hilly areas
Less Boot space
Poor engine cooling & hence over heating
No headlight levelers
No modern facilities- ABS, PS, AC
SWOT ANALYSIS
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Opportunities: Bikers can be motivated
Created a Niche Market
Creates Employment
Auto Finance
Diesel & Electric Variant
Developing Low Price Engine Oil
Threats:
New Competitor- Bajaj, Honda Siel, GM etc.
REVA an electric car
Traffic Congestion Government may increase taxes in metros
Rising cost of raw material
Reducing parking space
SWOT ANALYSIS
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4 PS OF MARKETING
1.Product:Tata has a very wide range of products it has passenger cars,
utility vehicles, Trucks, Commercial passenger Carriers and Defence
Vehicles.
The Tata Nano is a rear-engine,Four passenger ,city car built by Tata Motors,
It was first presented at the
9th annual Auto Expo on 10 January 2008,
at Pragati Maidan in New Delhi, India.
From Singur to Pantnagar (Uttakrkhand)
Aimed primarily at the Indian market
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Price: Received Media attention due to its targeted low price Tata always have something for the lower class people with Nano
being their trump card.
Giving discount every month and special promotion for certain
type of vehicle also one of the strong strategy use by Tata Motors.
Pricing strategies:
Penetration pricing
Low pricing policy with minimum profit margin.
Though the one lakh price tag is not fixed by TATA group, it was the
word of mouth of people which fixed that range.
This expectation of people creates a big challenge for the company
4 PS OF MARKETING
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Place: Tata Motors has an extensive dealer network covering Indian and
International markets.
The channel of distribution, physical location, and dealership method of
distribution and sales is generally adopted.
The distribution of vehicle must be in a very systematic way,
from the plant to dealership and to end user.
This is not only in India itself but also to the world-wide dealership
Promotion: Tata motors promote their products via Advertising and after
sales services.
Enough use of one of the most important element of promotion mix,
publicity reduces the necessity of other promotional devices for Nano. Publicity as One lakh car by Word to mouth.
Auto expo 2008,New Delhi & Geneva
Publicity through print & electronic media
4 PS OF MARKETING
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BCG MATRIX
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BCG MATRIX- TATA MOTORS
STARSQuestion
Marks
Dogs
Cash cow
Relative Market share
x
0.1 x10x
Market
Growth
Rate (%)
0
10
20
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Market
Share
Growth
Rate
Earnings Cash
Needs
Strategy Egs
High High High,
Stable
Growing
High Invest,
Integrate,
Take Over
Low High Low,
Unstable,
Growing
High Harvest,
Divest
High Low High,
Stable
Low Maintain
Dominance
&
Leadership
Low Low Low,
Unstable
Low Divest,
Liquidate
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ANSOFF MATRIX
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ANSOFF MODEL
Market penetration strategy
Attract competitors customer:
y Launch worlds first cheapest car campaign.
y Highlight value for money.
y Good and wide spread service network.
Convert non user into user:y Special schemes for youth and middle income group like
zero down payments, low interest rate or a low EMI.
Market development
Geographically:
Launch in major emerging economies like Brazil, Russia, etc.
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ANSOFF MODEL
Product developmentQuality improvement:
Improve power and pick up.
Better and comfortable interiors.
New product development:Develop LPG and CNG versions for petrol versions.
New technologies like hybrid and electric versions.
Feature addition:
Smart security system .
GPS.
Parking assistant.Rear wash wipers
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ANSOFF MODEL
Product line extension:
Launch new model with more boot space and leg room.
Diversification
Car insurance.
Car finance.
Consultancy services on R&D.
Integrative Growth
y Forward integration:
y Open its exclusive showrooms and dealerships.
yBackward integration:y Entering manufacturing of key auto ancillaries.
y Horizontal integration:
y May acquire automobile R&D firm.
y Overseas acquisition.
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CONCLUSION
Expand the Indian car market by 65%, according to rating agency
CRISIL. The low price makes the car affordable for families with incomes of
Rs 1 lakh [1,00,000] per annum
The increase in the market is expected to push up car sales by 20%
over the previous year.
Thus, the Indian Economy is expected to remain strong and grow in
2009