NANO DC

About The Industry

Company Profile

Introduction Competitors

Marketing Mix

Distribution

SWOT Analysis

PEST Analysis Product life cycle curve Target Segment

Marketing Strategies Financial projection Implementation control Break even analysis

In the post globalized era where India is looking at growth rates of more than 8%,

one of the main beneficiaries of India’s growth story is Automobile Industry.

Termed as “Industry of Industries” by management guru Peter Drucker,

Automobile industry has been one of the indicators of a country’s economic

prosperity. Prior to the 1991 liberalization, auto industry in India was controlled

and licensed by the government. Post 1991, the industry has grown at an average

rate of 17%. Currently contributing to around 5% of the GDP, this is expected to

rise to 10% of GDP.

In the post globalized era where India is looking at growth rates of more than 8%,

one of the main beneficiaries of India’s growth story is Automobile Industry.

Termed as “Industry of Industries” by management guru Peter Drucker,

Automobile industry has been one of the indicators of a country’s economic

prosperity. Prior to the 1991 liberalization, auto industry in India was controlled

and licensed by the government. Post 1991, the industry has grown at an average

rate of 17%. Currently contributing to around 5% of the GDP, this is expected to

rise to 10% of GDP.

Headquarters - Mumbai.

TML is currently headed by Ratan Tata.

Tata Motors manufactures HCV, LCV,

Passenger cars, MUV and Military Vehicles.

Global operations - UK, South Korea, Thailand and Spain.

TML - world's fourth largest truck manufacturer. world’s second largest bus

manufacturer.

Holding 60% of market shares in commercial vehicles.Holding 60% of market shares in commercial vehicles.

With revenue of USD 14Billion(2007-2008),Tata Motors is the largest automobile company.With revenue of USD 14Billion(2007-2008),Tata Motors is the largest automobile company.

What do we want them to THINKWhat do we want them to THINK

First Indian Company to be listed in the New York ExchangeFirst Indian Company to be listed in the New York Exchange

Dealership operating in 26countries across 4 continents.Dealership operating in 26countries across 4 continents.

SEEDS OF DREAM

I observed familiesriding on two-wheelerthe father driving thescooter, his young kidstanding in front ofhim, his wife seatedbehind him holding alittle baby. It led me towonder for such a carwhich is safe &

affordable to any middle class

family.

INTRODUCTION OF TATA NANO DC

“Dream-dream and dream, because dream gives vision, vision gives thoughts and finally thoughts lead to the action". Each letter of these motivational words said by India's former President Dr. A.P.J. Abdul Kalam goes exactly with Mr. Ratan Tata, Chairman of Tata group, who in the year 2003, introduce a affordable car for the common people. Innovatively planning to form one more series of Nano Dc.The Nano Dc has created a completely new category and continues to innovate in line with the evolution of the market.The awesome spirit of the Nano Dc - of living life on your own terms - is depicted through the colourful world of Nano Dc and the people in this world who share the brand's unique attitude - to do things bigger, better, and differently.

Competitors

o Present nearest Present nearest rivals rivals

oInternal competitor

o Future competitor

• 1. Maruti Alto 800Price: 2.44 -  3.56 lakhMileage: 22.74 Kmpl

• 2. Hyundai i10

Price: 3.69 – 6.15 lakh

Mileage: 20.36 kmpl

• 3. Hyundai EON Price: 2.73 - 3.76 lakh Mileage: 21.1 kmpl

Competitors

• 1.Tata Indica V2

Price: 3.99 - 4.33 lakh

Mileage: 17.88 kmpl

• 2.Tata Venture

Price: 4.57 - 5.34 lakh

Mileage: 15.42 kmpl

• 3.Tata Indica Vista

Price: 4.61 - 6.83 lakh

Mileage: 19.1 kmpl

o Present nearest

rivals

oInternal competitorInternal competitor

o Future competitor

Competitors

o Present nearest

rivals

oInternal competitor

o Future competitorFuture competitor

• 31 DESIGN AND TECHNOLOGY PATENTS

• Cutting edeg Cutting edeg aesthetics and aesthetics and functionalityfunctionality

• AMAZING FUEL EFFICIENT AT 60MPG

• Now fuel prices Now fuel prices won't decide won't decide where you gowhere you go

• HIGH GROUND CLEARANCE

• Tell like an SUVTell like an SUV

• 6 EXITING COLOURS

• What's your What's your pick?pick?

• New Amphistream Music System

• Best-in-class AC

• Remote keyless entry

• Best Petrol mileage of 25 Kmpl#

• Warranty for 4 years / 60,000 KM^

Marketing Mix

NANO Dc is using Hub and Spoke Model for distributionTATA has many C&F Agents (Collects Nano Dc from hubs and distribute it across nation)

NANO Dc is using Hub and Spoke Model for distributionTATA has many C&F Agents (Collects Nano Dc from hubs and distribute it across nation)

While the Nano Dc seemed tailor-made for rural drivers, Tata only has dealers in major cities. 

Lack of dealers in the target market i.e semi urban cities and rural areas. While the Nano Dc seemed tailor-made for rural drivers, Tata only has

dealers in major cities. The car’s reputation was further damaged when five of the first 30,000 cars had engine fires. Although no one was hurt in these instances, two of the cars burnt to the ground.

The final nail in the coffin is the price: Rising material costs pushed the car’s price up to Rs. 1.5 lakh the same as a used Maruti 800. Even without the social stigma, this price left many people wondering why they would choose to buy a car that didn’t even have a trunk

Marketing Strategies.

• Online Marketing

• Offline Markting

For marketing strategy Tata had use conventional media in an unconventional manner.

Nano DC isn’t big on advertising. There are no TV campaign.

Only innovative use of print, radio and other media, particularly the web.

Online Marketing

The major sections of the site are:The major sections of the site are:

a.a. Galary (both pictures and videos). Galary (both pictures and videos).

b.b. Game (rather Link to a nice virtual driving Game (rather Link to a nice virtual driving

game by Zapak). game by Zapak).

c.c. Community. Community.

d.d. Why Nano? Why Nano?

e.e. Booking DetailsBooking Details

Online Online

Social Media

Nano Game

Website: www.tatananodc.com

DC

Online Marketing

FacebookFacebook

BlogBlog

Orkut Orkut

YouTube YouTube

Online

Social MediaSocial Media

Nano Game

DC

Online Marketing

The game by The game by zapakzapak was a great move to was a great move to spread word about the car. spread word about the car.

Online

Social Media

Nano GameNano Game

Offline Marketing

OfflineOffline

Print Media

Collaborations: Tata partnered with a few banks for

releasing application forms.

Leveraging Existing Infrastructure: People can find

Nano Dc merchandise, application forms and demo cars in

Tata Indicom, Titan, Croma and Westside stores. Tata

Indicom is also offering a money-back offer with every

application form.

TV: Tata also invest heavily into TV commercials. Instead of anchors saying ‘we’ll be back after a

short break’ on TV channels, now they’re saying,

‘We’ll be back after a Nano break.’

Offline Marketing

Offline

Print MediaPrint Media

The grand Relaunching The grand Relaunching ceremony of Tata Nano DC was ceremony of Tata Nano DC was covered by all kind of media covered by all kind of media personal. It was a front page personal. It was a front page headline in many leading headline in many leading newspapers.newspapers.

International motor show at International motor show at Geneva where Mr. Tata shows Geneva where Mr. Tata shows the Nano DC in front of the Nano DC in front of international media.international media.

Business tycoon like Mr. Tata Business tycoon like Mr. Tata when delivered the New Nano when delivered the New Nano DC to a comman person, itself it DC to a comman person, itself it makes a big news.makes a big news.

Newspaper

Size(Color Ad)

Rate of 1 day

Total rate for 3 days in a week

Duration Total cost for 2 months

Times of India

Full page 14,85,000 44,55,000 2 months 3,56,40,000

Channels Timing (Slots)

1 day cost for airing Ad for 8 times(30 sec)

Total cost for 2 months

MTV 7pm – 11 pm 15 Lakh 9,00,00,000

Aaj Tak 7pm – 11 pm 18 Lakh 10,80,00,000

Star Plus 7pm – 11 pm 20 Lakh 12,00,00,000

31,80,00,000

Location

Size (cm)

Rate of 1 billboardfor2 months

Rate of 5 billboards for 2 months

Frequency

Total cost

City 400*500 12,03,960

60,19,800

20 12,03,96,000

Highways

720*2400

18,06,680

90,33,400

20 18,06,68,000

30,10,64,000

• Break even analysis indicates that 3742 unit or 65,47,04,000 will be required in monthly sales revenue to reach the break even point.

• Table: Break Even Analysis

• Break even analysis :

•  Total expenses / revenue

per car

65,47,04,000/175000

= 3741.1657

So the Break even could

have been achived after

3742units of car sold.

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

1000 2000 3000 4000 5000 6000 7000

fixed cost

total cost

total revenue

Break even analysis

• Break even analysis indicates that 3742 unit or 65,47,04,000 will be required in monthly sales revenue to reach the break even point.

• Table: Break Even Analysis

• Break even analysis :

•  Total expenses / revenue

per car

65,47,04,000/175000

= 3741.1657

So the Break even could

have been achived after

3742units of car sold.

Break even analysis