Research on Tata Nano

Research on tata nano

Market Research Problem• Will the conversion of ‘Nano’ to a taxi affect brand image and consequently sales?

• Will initial demand may lead to stock out.

• Whether the prices of ‘Nano’ will be sustained over a period of time with the economic changes in raw material price rise?

• With the hike in sales of ‘Nano’, whether the infrastructure of the country will be able to sustain the volume of traffic?

• Will the Protest of farmers against Nano plant in Singur affect the sale?

• Will General Perception of brand “TATA” in small car segment affect the sale?

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

• BUYER BEHAVIOUR

– In India the market for four wheeler is huge. Demographic feature is also favourable for India

• LEGAL ENVIRONMENT

– With the increase in volume of traffic there will be pollution problems and also will increase the accidents.

• ECONOMIC ENVIRONMENT

– As the GDP of India is rising the living standard of consumers is also rising and now their purchasing power is also increasing. So there is more disposable income.

• MARKETING AND TECHNOLOGICAL SKILLS

– Tata has expertise in marketing and technology. Bosch developed 623.6cc multi point fuel injection system engine, which will give a performance of 20kmpl. The car has its engine at rear which increases the inner space of the car and it also has an air conditioner with heater.

Hypothesis• Conversion of ‘NANO’ to a taxi will not affect the brand image and sales.

• NANO is safe for driving.

• Hike in price of NANO will not effect the sale.

• People prefer to purchase the NANO instead of two wheeler.

• People can wait for NANO for few months.

Methodology• Data collection

– Primary Source

• Potential Customers

• Those who have good knowledge of Nano

– Secondary Source

• Internet

• Magazines and Newspapers

• Research Instruments

– Questionnaire

– Interview with experts

Focus group

Focus group study with 10 respondents

Group Size - 10

Time Duration - 1 hour

Characteristics of Respondents

All have good driving experience

Between age group 20-40

All have a Good Knowledge of Nano

1- Will the conversion of Nano into a taxi have an impact on its sales?

Conclusion- Most of the respondents believes that there will be no

impact on sales while others disagreed with this.

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

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.

3. Will Tata be able to maintain the price of Nano in future if there is hike in cost of raw materials?

Conclusion- Most of the respondents believe that the rise in the price

of raw material will lead to a increase in the price of the car while few believes in Ratan Tata’s statement that “ promise is a promise” but still all the respondent believe that there will be no impact on sales.

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

Conclusion- Most of the respondent believe that the development in Indian

infrastructure will be able to sustain the volume of traffic while the others believe that there will be traffic conjunctions. Despite of the traffic conjunctions they will still prefer to purchase Nano

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

Conclusion-Most of the respondents felt that the protest by farmers in

Singur is for a short period of time. It is a political issue which does not seems to affect the sales but a quite a few do not believe in this way. Although the entire respondents feel that Tata’s Nano project in Singur will lead to the economic development of farmers.

6- Can the brand name “Tata” (which is known for heavy vehicles) have an impact on its sales?

Conclusion- Majority of the respondent believe that the brand name Tata

carries a good image in the market while others believe that Tata is not successful in small car segment which might affect the brand name to an extent.

7- Can upcoming competition (Renault, Bajaj) have an impact on its sales?

Conclusion- Most of the respondent believe that Nano is the pioneer in small

car segment and backed by strong brand name Tata. It will be able to sustain the upcoming competition from rivalry entering the same market.

8- Whether safety or cost is the top the priority while buying Nano?

Conclusion- Most of the respondent give safety as there top priority while

purchasing Nano and rest of them think that still Nano will be safer than two wheelers.

An over view or sum of all the conclusions of the focus group :

QUESTIONNAIRE OF TATA-NANO

1. What is the first thing, which comes into your mind when you think about NANO?

...............................................................................................................................................................

...................................................................................

2. Instead of purchasing a Bike, will you prefer to go for the NANO?

1. Yes 2. No 3. Can’t say

3. Which feature of NANO attracts you most, that inspires you to go for NANO?

1. Price 2. Design

3. Mileage 4. Interior space

5. All the above 6. Can’t say

4. Which colour of NANO would you prefer?

1. Red 2. Blue

3. White 4. Yellow

5. Silver 6. Other, Specify……............

5. For what purpose would you like to use NANO?

1. Will offer it to your children to use it in place of a two wheeler.

2. Will use as family car for shopping and travel.

3. Will prefer as a taxi.

4. Would like to offer as gift.

5. Any other, specify.................................

6.Do you think NANO is people's car ?


7. Will you recommend NANO to your friends and relatives?


8. Which small car would you prefer to buy?

1. Maruti 800 2. Tata NANO 3. Other………………..

9.How long can you wait for NANO?

1. 1-2 months 2. 2-4 months

3. 4-6 months 4. Can’t wait

10.If the price of NANO rises, would you still purchase it?


11.Will Tata be able to maintain the price of nano in future if there is hike in cost of raw materials?


12.How will you feel if NANO is used as a taxi?

1. Embarrass 2. Don’t care 3. Can’t say

13.Will there be traffic problem with the introduction of Nano on Indian roads?

1. Yes 2. NO 3. Can’t say

14.Can you trust NANO for safety?


SUGGESTIONS1. Tata should increase the production of NANO so that customers don’t have to wait much for

their car, as they feel urgency for NANO.

2. As people believes that NANO is people’s car, and will be affordable by common men which was a dream earlier for them. So the price should be kept stable in future with the increase in price of raw material. Otherwise it will be out of their reach and people believe in Mr. Ratan Tata’s statement of- “Promise is a promise”.

3. Tata should give exchange offer against a two/four wheeler so that those consumers can be easily converted to NANO users.

4. Safety measures can be enhanced, because people consider it as their prime concern while purchasing.

5. An option for more customization should be available.

Research on Tata Nano

Documents

Transcript of Research on Tata Nano