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CHAPTER-I
INTRODUCTION
1
INTRODUCTION
Tata Group
Type Private
Industry Conglomerate
Founded 1868
Founder(s) Jamsetji Tata
HeadquartersBombay,house
Mumbai, India
Area served Worldwide
Key peopleRatanTata
(Chairman)
Products Steel
Automobiles
2
Telecommunications
Software
Hotels
Consumer goods
Revenue 319,534 crore (US$69.34 billion)
Profit 8,240 crore (US$1.79 billion)
Total assets US$ 52.8 billion (2009-10)
Employees 396,517 (2009-10)
Subsidiaries
TataSteel
TataSteelEurope
TataMotors
TataConsultancyServices
TataTechnologies
TataTea
TitanIndustries
TataPower
TataCommunications
TataTeleservices
TataAutoCompSystemsLimited
Taj Hotels
Website Tata.com
Tata Group
3
Companies
India-based
CMC · Tata BP Solar · Tata Coffee · Tata Chemicals ·
Tata Consultancy Services · Tata Elxsi · Tata Interactive
Systems · Tata Motors · Tata Steel · Tata Power · Tata
Tea · Tata Communications · Tata Technologies
Limited · Tata Teleservices · Titan Industries · Tata
Voltas · The Indian Hotels Company · Trent
(Westside) · Cromā
Other
Brunner Mond · Jaguar Land Rover (Jaguar Cars · Land
Rover) · Tata Daewoo Commercial Vehicle · Tata Steel
Europe · Tetley · VSNL International Canada
Brands
Ginger · Good Earth Teas · Tanishq · Taj Hotels · I-shakti · Tata
Salt · Tata Sky · Tata Indicom · Tata DoCoMo · Titan · Westside ·
Voltas · Virgin Mobile India
Notable
People
Jamsetji Tata · Ratanji Dadabhoy · Dorabji Tata · Nowroji
Saklatwala · J. R. D. Tata · Ratan Tata · Pallonji Mistry
Bombay House is the head office of Tata Group
The Tata Group is an Indian multinational conglomerate company headquartered in the
Bombay House in Mumbai, India. In terms of market capitalization and revenues, Tata
Group is the largest private corporate group in India. It has interests in chemicals, steel,
automobiles, information technology, communication, power, beverages, and hospitality.
The Tata Group has operations in more than 80 countries across six continents and its
companies export products and services to 80 nations. The Tata Group comprises 114
companies and subsidiaries in eight business sectors, 27 of which are publicly listed.
65.8% of the ownership of Tata Group is held in charitable trusts.
4
Companies which form a major part of the group include Tata Steel (including Tata Steel
Europe), Tata Motors (including Jaguar and Land Rover), Tata Consultancy Services,
Tata Technologies, Tata Tea (including Tetley), Tata Chemicals, Titan Industries, Tata
Power, Tata Communications, Tata Teleservices and the Taj Hotels.
The group takes the name of its founder, Jamsedji Tata, a member of whose family has
almost invariably been the chairman of the group. The chairman of the Tata group is
Ratan Tata, who took over from J. R. D. Tata in 1991 and is one of the major
international business figures in the age of globality. The company is currently in its fifth
generation of family stewardship. The 2009 annual survey by the Reputation Institute
ranked Tata Group as the 11th most reputable company in the world. The survey included
600 global companies.
On 9 February 2011 a major fire broke out in the Bombay House, the Tata Group's
headquarters, causing three deaths and one injury, and reportedly gutting the building.
HISTORY
The beginnings of the Tata Group can be traced back to 1868, when Jamsetji Nusserwanji
Tata established a trading company dealing in cotton in Bombay (now Mumbai), British
India. This was followed by the installation of Empress Mills in Nagpur in 1877.
Taj Mahal Hotel in Bombay (now Mumbai) was opened for business in 1903. Sir Dorab
Tata, the eldest son of Jamsetji became the chairman of the group after his fathers death
in 1904. Under him, the group ventured into steel production (1905) and hydroelectric
power generation(1910). After the death of Dorab Tata in 1934, Nowroji Saklatwala
headed the group till 1938. He was succeeded by Jehangir Ratanji Dadabhoy Tata. The
group expanded significantly under him with the establishment of Tata Chemicals (1939),
Tata Motors and Tata Industries (both 1945), Voltas (1954), Tata Tea (1962), Tata
Consultancy Services (1968) and Titan Industries (1984). Ratan Tata, the incumbent
chairman of the group succeeded JRD Tata in 1991.
RATAN NAVAL TATA
5
BornDecember28,1937(age 73)
Bombay, Bombay Presidency, British India
Residence Colaba,Mumbai, India
Nationality Indian
Ethnicity Parsi
Alma materCornellUniversity
Harvard University
Occupation Chairman of Tata Group
Awards
PadmaBhushan(2000)
PadmaVibhushan(2008)
Order of the British Empire (2009)
Ratan Naval Tata is the present Chairman of Tata Sons and therefore, Tata Group. He is
also the chairman of major Tata companies such as Tata Steel, Tata Motors, Tata Power,
Tata Consultancy Services, Tata Tea, Tata Chemicals, The Indian Hotels Company and
Tata Teleservices
EARLY LIFE AND EDUCATION
Ratan Tata born to Naval Tata and Soonoo Commisariat in the Tata family, a prominent
family belonging to the Parsi community. Ratan is the great-grandson of Tata group
founder Jamsedji Tata. After his parents separated in 1944, he was brought up by his
grandmother Lady Navajbai and did his schooling in Mumbai from Campion School.
Later, he enrolled in Cornell University, where he earned a B.S in architecture with
structural engineering in 1962, and has also completed the Advanced Management
Program at Harvard Business School.
6
When he returned to India in 1962 after turning down a job with IBM on the advice of
JRD, he was sent to Jamshedpur to work on the shop floor at Tata Steel with other blue-
collar employees, shovelling limestone and handling the blast furnace. In 1971, he was
appointed the Director of National Radio and Electronics (Nelco), which was in dire
straits when he came on board: with losses of 40% and barely 2% share of the consumer
electronics market. However, just when he turned it around (from 2% to 25% market
share), the Emergency was declared. A weak economy and labour issues compounded the
problem and Nelco was quickly near collapse again.
For his next assignment, in 1977 he was asked to turn around the sick Empress Mills,
which he did. However, he was refused a Rs 50 lakh investment required to make the
textile unit competitive. Empress Mills floundered and was finally closed in 1986.In
1981, JRD Tata stepped down as Tata Industries chairman, naming Ratan as his
successor. He was heavily criticized for lacking experience in running a company of the
scale of Tata Industries.
In 1991, he was appointed group chairman of the Tata group. As group chairman, he has
been responsible for converting "the corporate commonwealth" of different Tata-
affiliated companies into a cohesive company. He has been responsible for the
acquisition of Tetley, Jaguar Land Rover and Corus, which have turned Tata from a
largely India-centric company into a global business, with 65% revenues coming from
abroad. He also pushed the development of Indica and the Nano. He is widely credited
for the success of the Tata Group of companies, especially after the liberalization of
controls after the 1990s.
RECOGNITION AND HONORARY APPOINTMENTS
Ratan Tata serves in senior capacities in various organisations in India and he is a
member of the Prime Minister's Council on Trade and Industry. Tata is on the board of
governors of the East-West Center, the advisory board of RAND's Center for Asia Pacific
7
Policy and serves on the program board of the Bill & Melinda Gates Foundation's India
AIDS initiative. Ratan Tata's foreign affiliations include membership of the international
advisory boards of the Mitsubishi Corporation, the American International Group, JP
Morgan Chase and Booz Allen Hamilton. He is also a member of the board of trustees of
the RAND Corporation, University of Southern California and of his alma mater, Cornell
University. He also serves as a board member on the Republic of South Africa's
International Investment Council and is a member of the Asia-Pacific advisory committee
for the New York Stock Exchange. In 2010, he joined BMB Group as an advisory board
member.
He has also been appointed to the following honorary distinctions:
honorary economic advisor to Hangzhou city in the Zhejiang province of China.
FIRST Award for Responsible Capitalism. 26th Robert S. Hatfield Fellow in
Economic Education, awarded by Cornell University
recipient of the NASSCOM Global Leadership Awards (2008)
Carnegie Medal of Philanthropy (2007), on behalf of the Tata family.
honorary citizenship of Singapore.
honorary doctorate in business administration by the Ohio State University,
honorary doctorate in technology by the Asian Institute of Technology, Bangkok,
honorary doctorate in science by the University of Warwick, honorary fellowship
by the London School of Economics., and honorary Doctor of Law from the
University of Cambridge.
honored as 'Businessman of the Decade' by The Federation of Indo-Israeli
Chambers of Commerce (2010) .Legend in Leadership award from Yale (2010)
ENGINEERING
The Tata Nano, world's cheapest car
TAL Manufacturing Solutions exports titanium-composite floor beams that are
installed in the Boeing 787 aircraft.
8
Tata AutoComp Systems Limited (TACO) and its subsidiaries, auto-component
manufacturing
Tata Motors (formerly Tata Engineering and Locomotives Company Ltd
(TELCO)), manufacturer of commercial vehicles (largest in India) and passenger
cars
Jaguar and Land Rover
Tata Projects
Tata Consulting Engineers Limited
Telco Construction Equipment Company
TRF Bulk Material Handling Equipment and Systems, and Port and Yard
Equipments.
Voltas , consumer electronics company
Voltas Global Engineering Centre
ENERGY
Tata Power is one of the largest private sector power companies. It supplies power
to Mumbai, the commercial capital of India and is the retailer of electricity in the
northern suburbs of New Delhi.
Tata BP Solar , a joint venture between Tata Power and BP Solar
CHEMICALS
Rallis India
Tata Pigments
Tata Chemicals , headquartered in Mumbai, India, Tata Chemicals has the largest
single soda ash production capacity plant in India. Since 2006 Tata Chemicals has
owned Brunner Mond, a United Kingdom-based chemical company with
operations in Kenya and the Netherlands.
Advinus Therapeutics , headquartered in Bangalore, Indian, a Contract research
organization focused on drug discovery and development for Pharmaceutical,
Agro and Biotech industries.
9
SERVICES
The Indian Hotels Company
Tata Housing Development Company Ltd. (THDC)
TATA AIG General Insurance
TATA AIG Life Insurance
Tata Advanced Systems Limited
Tata Asset Management
Tata Financial Services
Tata Capital
Tata Investment Corporation
Tata Quality Management Services
Tata Share Registry
Tata Strategic Management Group (TSMG) is one of the largest consulting firms
in South Asia.
Tata Services
Tata Consulting Engineers Limited
Tata Realty and Infrastructure Limited
CONSUMER PRODUCTS
Tata Salt , i-Shakti Salt, Tata Salt Lite
Tata Swach water purifier
Eight O'Clock Coffee
Tata Ceramics
Infiniti Retail
Tata Tea Limited is the world's second largest manufacturer of packaged tea and
tea products. It also owns the Tetley brand of tea sold primarily in Europe.
Titan Industries manufacturers of Titan watches
Trent (Westside)
Tata Sky
Tata International Ltd - Leather Products Division
10
Tanishq jewellery
Star Bazaar
INFORMATION SYSTEMS AND COMMUNICATIONS
Computational Research Laboratories
INCAT
Nelco
Nelito Systems
Tata Business Support Services (formerly Serwizsol)
Tata Consultancy Services Ltd. (TCS) is Asia's largest software company with
2008-09 revenues being over US$ 6 bn.
Tata Elxsi is another software and industrial design company of the Tata stable.
Based in Bangalore and Trivandrum.
Tata Interactive Systems
Tata Technologies Limited
Tata Teleservices
Tata Communications , formerly VSNL, the Indian telecom giant, was acquired in
2002. Tata-owned VSNL acquired Teleglobe in 2005.
CMC Limited
TATANET , Managed connectivity and VSAT service provider
THE TATA LOGO
The Tata logo was designed by the Wolff Olins consultancy. The logo is meant to signify
fluidity; it may also be seen as a fountain of knowledge; maybe a tree of trust under
which people can take refuge.
PHILANTHROPY AND NATION BUILDING
The Tata Group has helped establish and finance numerous quality research, educational
and cultural institutes in India. The Tata Group was awarded the Carnegie Medal of
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Philanthropy in 2007 in recognition of the group's long history of philanthropic activities.
Some of the institutes established by the Tata Group are:
Tata Institute of Fundamental Research
Tata Institute of Social Sciences
Indian Institute of Science
National Centre for Performing Arts
Tata Management Training Centre
Tata Memorial Hospital
Tata Football Academy
Tata cricket Academy
Tata Trusts , a group of philanthropic organizations run by the head of the business
conglomerate Tata Son
The JRD Tata Ecotechnology Centre
The Energy and Resources Institute (earlier known as Tata Energy and Research
Institute) - which is an NPO completely committed to the cause of research in the
field of renewable energy.
The Tata Group has donated a ₨ 220 crore ($50 million) to the prestigious Harvard
Business School (HBS) to build an academic and a residential building on the institute’s
campus in Boston, Massachusetts. The new building will be called the Tata Hall and used
for the institute’s executive education programmes. The amount is the largest from an
international donor in Harvard’s 102-year-old existence.
A comprehensive list is available on the company website.
TATA ACQUISITIONS AND TARGETS
February 2000 - Tetley Tea Company, $407 million
March 2004 - Daewoo Commercial Vehicle Company, $102 million
August 2004 - NatSteel's Steel business, $292 million
November 2004 - Tyco Global Network, $130 million
July 2005 - Teleglobe International Holdings, $239 million
12
October 2005 - Good Earth Corporation
December 2005 - Millennium Steel, Thailand, $167 million
December 2005 - Brunner Mond Chemicals Limited, $120 million
June 2006 - Eight O'Clock Coffee, $220 million
November 2006 - Ritz Carlton Boston, $170 million
Jan 2007 - Corus Group, $12 billion
March 2007 - PT Kaltim Prima Coal (KPC) (Bumi Resources), $1.1 billion
April 2007 - Campton Place Hotel, San Francisco, $60 million
February 2008 - General Chemical Industrial Products, $1 billion
March 2008 - Jaguar Cars and Land Rover, $2.3 billion
March 2008 - Serviplem SA, Spain
April 2008 - Comoplesa Lebrero SA, Spain
May 2008 - Piaggio Aero Industries S.p.A., Italy
June 2008 - China Enterprise Communications, China
June 2008 - Neotel, South Africa.
October 2008- Miljo Grenland / Innovasjon, Norway
Imacid chemical company, Morocco
TARGETS
Close Brothers Group , $2.9 billion
Orient-Express Hotels , $2.5 billion
January 2008 - T-Systems International (IT division of Deutsche Telekom)
REVENUE
Tata gets more than 2/3rd of its revenue from outside India.
TATA NANO
13
TATA NANO
Manufacturer Tata Motors
Also called one-lakh car
Production 2008–present
Assembly
Pantnagar, Uttarkhand, India
Charodi, Gujarat, India (since June
2010)
Class City car
Body style(s) 4-door
Layout RR layout
Engine(s)
2 cylinder SOHC petrol Bosch multi-
point fuel injection (single injector) all
aluminium 624 cc (38 cu in )
Transmission(s)4 speed synchromesh with overdrive in
4th
Wheelbase 2,230 mm (87.8 in)
Length 3,099 mm (122.0 in)
Width 1,495 mm (58.9 in)
14
Height 1,652 mm (65.0 in)
Kerb weight 600 kg (1,300 lb)–635 kg (1,400 lb)
DesignerGirish Wagh, Justin Norek of Trilix,
Pierre Castinel
The Tata Nano is an inexpensive, rear-engined, four-passenger city car built by the
Indian company Tata Motors and is aimed primarily at the Indian domestic market.
Tata Motors began selling its "one-lakh car" in March, 2009. The cheapest car in the
world today, though the price continues to rise due to increasing material costs, it is an
exemplary example of Gandhian engineering, a concept involving deep frugality and a
willingness to challenge conventional wisdom.
In 2008 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 (€1,490, £1,186) Nano
encapsulates the dream of millions of Indians groping for a shot at urban
prosperity.Homegrown engineering" is a relative term here as much of the systems and
parts used in the Nano may not have been developed or produced in India.
The nickname, "one-lakh car" is due to the Nano's low price point, near 100,000 (one
lakh rupees).
BENEFITS OF NANO
The car is expected to boost the Indian Economy.
Create entrepreneurial-opportunities across India.
15
Expand the Indian car market by 65%.
CRITICISM/PROBLEMS OF NANO
Mass motorization and climate change: It would clog the roads, the atmosphere and
ultimately the lungs of little ones
Would seriously effect used car market: Middle class people would prefer buying NANO
intsead of a used car.
CONTROVERSY OVER NANO
Singur Controversy
Singur car factory land dispute arose as Tata's planned manufacturing unit for the car in,
Singur, where the state government of West Bengal had allocated 997 acres (4.03 km2) to
Tata Motors.The construction of the car factory on that tract of land began in January
2007 on fertile agricultural land and the expropriation and eviction of approximately
15,000 peasants and agricultural workers. The affected farmers have fears that they will
receive inadequate or no compensation and therefore lose their livelihoods.
On 2 October 2008, Ratan Tata officially announced that Tata Motors is pulling the Tata
Nano project out of Singur and "evaluating options from Maharasthra and Gujarat," as
well as Karnataka to relocate the plant and machinery.
HISTORY
Seeing an opportunity in the great number of Indian families with two-wheeled rather
than four-wheeled vehicles, Tata Motors began development of an affordable car in 2003.
The purchase price of this no frills auto was brought down by dispensing with most
nonessential features, reducing the amount of steel used in its construction, and relying
on low-cost Indian labor. The introduction of the Nano received much media attention
due to its low price. While the car has sold over 200K units, disappointing November,
2010, sales figures have made some rethink current opinion that selling no frills products
16
to the poor will be a winning strategy in the future. The Nano's development was
foreshadowed by the 2005 success of the affordable, 4-wheeled Tata Ace truck.
EXPECTATIONS
Many have had great expectations for this small car, some perhaps going a bit too far.
One study, by Indian rating agency CRISIL, thought the Nano would expand the nation's
car market by 65%.
SINGUR FACTORY PULLOUT
Tata Motors announced in 2006 that the Nano would be manufactured in Singur, West
Bengal, helped in part by a forced acquisition and reuse of farmland by the West Bengal
state government to entice Tata to build there. Local farmers soon began protesting the
forced acquisition of their land for the new factory. As the protests continued through
2007 and 2008, Tata first delayed the Nano launch and later decided to build the car at a
different location in Gujarat, instead.
DESIGN
The car's exterior was designed at Italy's Institute of Development in Automotive
Engineering.
COST CUTTING FEATURES
The Nano's design implements many cost-reducing innovations.
The Nano's trunk is only accessible from inside the car, as the rear hatch does not
open.
One windscreen wiper instead of the usual pair
No power steering, unnecessary due to its light weight
Three lug nuts on the wheels instead of the usual four
Only one wing mirror
17
No radio or CD player
No airbags
623cc engine has only 2 cylinders
PRICE
Announcing the vehicle as the least expensive production car in the world, Tata aimed for
a starting price of one lakh, or 100,000, rupees. This was approximately US$2000 at the
time. As of December, 2010, the cheapest Nano costs around US$2900.
Rapidly rising material prices (up 13% to 23% over the car’s development time) caused it
to cost somewhat more than 1 lakh (US$2,170).
In late October 2010, Reuters reported that prices will be raised by an average of 9,000
rupees (US$202) from November because of rising material costs.
MODEL VERSIONS
Tata Nano Europa
At its launch the Nano was available in three trim levels:
the basic Std priced at 142,000 (US$3,081.4) has no extras
the deluxe Cx at 171,000 (US$3,710.7) has air conditioning
the luxury Lx at 195,000 (US$4,231.5) has air conditioning and power windows
EUROPA
This export version of the Nano was first shown at the 2009 Geneva Motor Show but has
yet to go on sale. Heavily upgraded to meet EU safety and emission standards, the car
will have a number of improvements over the standard Nano, including an extended
wheelbase, a new 3-cylinder engine, power steering, an anti-lock braking system (ABS)
and an improved interior and exterior. The Nano Europa will be more expensive, heavier,
and less fuel efficient than the standard Nano with prices said to be around US$6000.
18
TECHNICAL SPECIFICATIONS
The Nano is a 35 PS (26 kW; 35 hp) car with a two-cylinder 624 cc rear engine.
The car complies with Indian emission standards and can also meet European emission
standards as well.
Engine: 2 cylinder petrolwith
Bosch multi-point fuel
injection (single injector)
all
aluminium33 horsepower
(25 kW) 624 cc (38 cu in )
Value Motronic engine
management platform
from Bosch
2 valves per cylinder
overhead camshaft
Compression ratio: 9.5:1
bore × stroke: 73.5 mm
(2.9 in) × 73.5 mm (2.9
in)
Power: 35 PS (26 kW; 35
hp) @ 5250 rpm
Torque: 48 N·m (35
ft·lbf) @ 3000 +/-500
rpm
Layout and
Transmission
Rear wheel drive
4-speed manual
transmission
Steering mechanical rack and
19
pinion w/o servo
Turning radius: 4 metres
Performance Acceleration: 0-60 km/h
(37 mph): 8 seconds
Maximum speed:
105 km/h (65 mph)
Fuel efficiency (overall):
23.6 kilometres per litre
(4.24 litres per 100
kilometres (66.6 mpg-imp;
55.5 mpg-US))
Body and
dimensions
Seat belt: 4
Trunk capacity: 150 L
(5.3 cu ft)
Suspension,
Tires &
Brakes
Front brake: 180 mm
drum
Rear brake: 180 mm
drum
Front track: 1,325 mm
(52.2 in)
Rear
track: 1,315 mm (51.8 in)
Ground clearance:
180 mm (7.1 in)
Front suspension:
McPherson strut with
lower A arm
Rear suspension:
Independent coil spring
12-inch wheels
20
ALTERNATIVE-ENERGY ENGINES
While the Nano is a driven by a gasoline-powered engine, several more-radical
powerplants have been proposed but not put into production.
COMPRESSED-AIR ENGINE
Tata Motors signed an agreement in 2007 with a French firm, Motor Development
International, to produce a compressed air car Nano. While the vehicle was supposed to
be able to travel approximately 200 kilometres (120 mi) on US$3 of electricity to
compress the air, Tata's Vice President of Engineering Systems confirmed in late 2009
that vehicle range continues to be a problem. Unless there is some form of insulation that
can keep the stored air from cooling, compressed air cars waste much of the charging
power as heat and then form ice that tends to clog the air engine when driving.
DIESEL
A website has speculated that the Nano might be made available with a diesel engine.
Tata motors have not confirmed this but have stated, "As of now there is no Diesel
variant of the Nano. The Nano is only available in a Petrol version.
ELECTRIC VEHICLE
Tata has discussed the possibility of producing an electric version, and while it
showcased an electric vehicle Nano at the 2010 Geneva Motor Show, no such car is
currently on the market.
If an EV Nano is sold it's expected to be the "world's cheapest electric car", use lithium-
ion batteries, and have a range of 80 miles (130 km). A Norwegian electric car specialist,
Miljøbil Grenland AS, has been named as a supposed partner in the project.
SAFETY CONCERN
21
A small number of fire incidents involving the Nano were reported. This led Tata to add
safety devices to the vehicle, although no recall was initiated and according to Tata, the
car is safe.
EFFECTS
The introduction of a cheap, mass market auto such as the Nano is bound to have some
unforeseen effects.
SAFER TRAVEL
Nano driving is safer than that of the currently used two-wheelers especially during
monsoon, when heavy rains can make traveling difficult on two-wheelers due to wet
roads.
POLLUTION INCREASE
As the Nano was designed for a population currently using eco-friendly bicycles and
motorcycles, environmentalists are concerned by the increase in pollution that would
follow a mass motorization in developing countries such as India. The Nano has far lower
emissions compared with developed country autos, however.
INDIAN USED CAR MARKET
The Nano is thought to have affected the used car market in India, as some Indians may
opt to buy a Nano rather than a used vehicle. The new-car market is also being affected.
Sales of new Maruti 800s, the second-cheapest car in India, dropped by 20% and used
models by 30% immediately prior to the Nano's introduction.
AWARDS
2010 Business Standard Motoring Indian car of the year
2010 Bloomberg UTV-Autocar car of the year
2010 Edison Awards, first place in the transportation category
22
2010 Good Design Awards, in the category of transportation
IN THE MEDIA
"Small Wonder: The Making of Nano", is a book on creation of Tata Nano.
CUSTOMER PERCEPTION ABOUT TATA NANO
OBJECTIVE & METHODOLOGY
Try to ascertain whether there has been a change of customer perception about
tata nano since it was launched.
1 Identifying the factors which led to this change
2 SWOT Analysis
3 Competitor Analysis
4 Online Survey
5 Customer Feedback
6 TATA Motors officials feedback
7 General public feeback
TATA NANO
unveiled on 10th January2008
1 Lakh Peoples Car Cheapest car in the world
Car of the year 2 years back to back
Booked several times over huge Popularity
SWOT
Affordable, Fuel efficient, collision safety requirements
S t r e n g t h Meets emission standards, Huge prospective customer
base
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Stylish, TATA motors has fully developed SSS, Eco
friendly
Short distance car , Less power, Noisy,
Weakness Not suited for high speed driving
No modern facilities
Tapping the publicity , Eating into second hand car
market O p p o r t u n i t y Making Nano hybrid , Nano electric, Ramping
production
Giving more facilities at the same cost
Competition , Perception as a cheap, unsafe product
T h r e a t Increase in the road congestion ,
Loss in sales due to low production output
INTERPRETATION & LEARNING
Huge Potential has clicked in peoples mind, Sense of association, Head turner
Needs to tap the publicity created, Need to address &rectify safety concerns
COMPITETOR ANALISIS
INTRODUCTION & OBJECTIVE
Framework to identify Identifying current
The strength and weakness status vis-a-vis the
Of the competitor offensive comparative SWOT
And defensive strategy analisis analysis of our
To get an insight into competi competitors with TATA
24
Tor available oppoutunity Nano
and possible threats
Developing the product
profile of the competitor
i.e. identifying key
features comparative to
TATA NanO
IDENTIFIED MAJOR COMPITITOR
MARUTI ALTO:
From the stable of Largest automobile manufacturer of South Asia Maruti
Suzuki India Limited Largest selling car in INDIA since 2006
KEY FEATURES IN COMPARISON WITH TATA NANO
H IGHS: Better performance (speed),higher engine power, more seating
capacity, larger fuel tank and available modern features like power steering,
disk brakes etc.
LOWS: Higher pricing (about twice to that of Nano), Lower fuel mileage, lack
of amenities like fog lights; tubeless tyres etc
BAJAJ LITE:
Bajaj Indias top most 2/3 wheel manufacturer First mover advantage with Lite
(small segment 4-wheeler) To be built in collaboration with Nissan;launch by
2012
KEY FEATURES
Collaborative product with Nissan –leading automaker in the worldhaving high
technological prowess Expected to have higher fuel efficiency 35
km/l as compared to Nanos 25 km/l
Expected to be slightly lower priced around `1,17000 as compared to Nano ’s `
1,23,000 Will have an transmission intermediate to manual and automatic; slight
edge over Nano’s purely Manual transmission
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SECOND HAND CARS:
U sed car market tremendously increasing in INDIA
Leading players Maruti & Honda
Reasons: Easy accessibility and lower interest rates for loans
KEY FEATURES
Lower pricing of around 1,00,000 Association with bigger, established
brands in 4-wheeler industry like Maruti and Honda as compared to a
new entrant like TATA .Obvious higher engine power
Better performance in terms of speed On the low side, lower fuel mileage
than Nanos 25 km/l
PLANNED CARS:
Eco friendly cars like TARA Tiny and Oreva Superwhich run on electricity;
priced
around ` 1,00,000
26
CHAPTER-II
REVIEWOF
LITERATURE
27
REVIEW OF LITERATURE
A review of literature is a critical analysis of a segment of a published body of
knowledge. A number of studies had been conducted related to TATA MOTORS.Due to
shortage of time and inability to cover all these past studies, some of these studies have
been considered in this section that has provided a base for this research.
Wells (2010) conducted a case study of the Tata Nano, a low-price car designed
primarily in and for the Indian market, and its implications for the developed industrial
markets. While the Nano is a classic ‘disruptive’ innovation in an Indian context, this
paper argues that the car and its emulators have the potential to undermine the viability of
the European automotive industry whose business is premised on technological
sophistication, premium branding and high price. In an era of greater austerity, the ‘value
for money’ segment is the one with global growth potential in emergent markets as well.
The paper concludes that policy makers in Europe will need to decide how to react to the
rather different vision of automobility offered by the Nano.
Thomaas(2010) conducted that Public agencies increasingly perform their functions in
partnership with other public, nonprofit, and private sector actors, prompting growing
research interest in how these collaborations function. As yet, almost no one has thought
it worth asking how collaborative partners perceive each other's performance, although
these perceptions may themselves constitute important measures of agency effectiveness.
28
Their determinants, in turn, could point to how agency effectiveness might be enhanced.
This article examines these perceptions and their possible determinants for the
partnerships between the state of Georgia's Department of Transportation and the state's
local governments. Drawing from prior research on citizen satisfaction with local
governments, the article proposes a preliminary theory of local government partner
perceptions of state agency performance, including several principal dimensions of those
perceptions—customer, partner, and overseer or principal—and hypotheses on possible
determinants of those perceptions. The relevance of the dimensions and the hypotheses
are then tested using data from two surveys of local government officials in Georgia. A
concluding section offers speculations on the meaning of these findings for thinking
about public service collaborations
. Markovits (2010) conducted in 1984, then-Professor (now-Judge) Frank Easterbrook
published an article recommending that U.S. courts use five filters to dismiss antitrust
cases without considering the merits of the plaintiff's or State's claim in any detail.
According to Easterbrook, the courts' use of these filters would serve the public interest
more by preventing them from mistakenly finding lawful conduct illegal than it would
disserve the public interest by enabling some perpetrators of illegal conduct to escape
liability or conviction. Although Easterbrook did not emphasize this fact, if his filters
were as inexpensive to apply as he assumed, their use would also serve the public interest
by reducing the transaction costs generated by antitrust litigation. Easterbrook's proposals
belong to a wider set of proposals made and/or adopted by economists, antitrust law
professors, antitrust judges, and antitrust enforcement officials that are designed to serve
the public interest (usually, more specifically, to increase economic efficiency) by
simplifying the application of U.S. antitrust law. This article argues that no member of
any of the eight sets of proposals of this kind that have been made and/or adopted can
bear scrutiny. It argues first that all these proposals must be rejected because they are too
inaccurate to be morally acceptable or legally valid—that is, because they ignore the fact
that the U.S. antitrust laws promulgate cognizable specific-anticompetitive-intent or
decreasing-competition tests of legality (do not authorize the courts to “regulate” the
conduct the statutes cover in the public interest, much less in the way that would be most
29
economically efficient) and the related fact that the moral-rights bearers for whom the
United States is responsible have a moral and legal right to courts, and juries' doing their
best in individual cases to discover the answer to the legal claim at issue that is correct as
a matter of law. It argues second that, for a variety of reasons, the proposals in question
would not serve the public interest or increase economic efficiency even if such moral-
rights considerations could be ignored because they are too inaccurate and relatively too
transaction-costly to be desirable, moral rights considerations aside.
Rieger (2010) conducted that “Dulles is driving his second Volkswagen already,”
announced the headline of a provincial West German newspaper in April 1957. The
accompanying article recounted how the automaker Volkswagen ( VW) had established
itself as a premier purveyor of export vehicles in the United States. 1 Only a decade after
the end of World War II, the report made clear, the superpower that had recently been the
Third Reich's enemy and that now towered as the Western leader of the Cold War
alliance welcomed the German-made commodity. The article gave no reason for John
Foster Dulles's vehicle purchase, but the fact that none other than the secretary of state
had opted for a small foreign car underlined for West German readers the significance of
VW's good fortune in America. Dulles's “Beetle” made the news thanks to the leading
positions that both the car and its manufacturer secured as symbols of West German
postwar recovery at home and abroad. Viewing the success of their exports as an
important sign of their international rehabilitation, West Germans developed a sensitive
radar for American recognition, particularly high-profile consumption of the product that
epitomized the Federal Republic's “economic miracle.”
The Volkswagen Beetle's American journey points to an important aspect of postwar
cultural and commercial relations between the United States and Western Europe that has
received little scholarly attention. While a substantial body of work has examined the
growing transatlantic prominence of American consumer commodities and practices as
well as other cultural products, Western Europe's cultural place in the United States has
only rarely aroused curiosity among historians. America's cultural importance in Western
Europe since 1945 has become convenient shorthand for the importance of the nation's
“soft power.” Both American elite culture—including abstract expressionism—and
30
popular culture—ranging from rock ‘n’ roll music to Hollywood film—were widely
accepted among Western …
Duysters et.al (2009) conducted that China and India have in recent years been
demonstrating their ability to face up to the challenges of globalization by
internationalizing their operations. In this article we carry out a case study of China's
Haier Group followed by a comparison of its growth and internationalization with those
of India's Tata Group. We examine several aspects of their internationalization, such as
the mode of internationalization and the choice of overseas destinations. The study
further explores the importance of, among others, conglomerate structure, prior
experience, the state, and entrepreneurship in the internationalization of the two groups.
Hoven and Vermaas(2007) conducted that that nano-technology in the form of invisible
tags, sensors, and Radio Frequency Identity Chips (RFIDs) will give rise to privacy
issues that are in two ways different from the traditional privacy issues of the last
decades. One, they will not exclusively revolve around the idea of centralization of
surveillance and concentration of power, as the metaphor of the Panopticon suggests, but
will be about constant observation at decentralized levels. Two, privacy concerns may not
exclusively be about constraining information flows but also about designing of materials
and nano-artifacts such as chips and tags. We begin by presenting a framework for
structuring the current debates on privacy, and then present our arguments.
Meikle (2000) conducted that this essay explores a topu that recalls Reyner Banham's
celebration of American popular culture and his enthusiastic travels through the United
States From 1931 into the early 1950s, the US market for inexpense postcards was
dominated by the s0-called hnen postcard, which was developed, designed, printed and
marketed by Curt Teuh & Co of Chiacgo Based on retouched black-and-white
photographs and printed in vivid, often exaggerated colours on textured card stock, these
inexpensive postcards represented the landscape and roadside attractions of an optimistic,
even important. American scene—an alternate world not always congruent with the relay
of the US during decades of economic depression and war. To a historian, the
31
encyclopaedic geographic iconographic of Tech's hnen cards, and of those printed by
competitors, suggests popular middle-class attitudes about nature, wilderness,
technology, mobility and the city during a self-conscious 'machine age'. For a collector,
on the other habd, these cards which are certainly authentic survivors of these time,
evolve postmodem nostalgia for a lost world portrayed through the maccurate
representations of pasteboard images.
Klepper and Kenneth (1997) conducted a buildup in the number of firms, new
industries commonly experience a ‘shakeout’ in which the number of firms declines
sharply. Three theoretical perspectives on how technological change contributes to
industry shakeouts are analyzed. The theories are used to synthesize predictions
concerning technological change and industry evolution. The predictions inform an
analysis of four US industries that experienced sharp shakeouts: automobiles, tires,
televisions and penicillin. Using data on firm participation and innovation from the
commercial inception of the four products through their formative eras, we uncover
regularities in how the products evolved. The regularities suggest that shakeouts are not
triggered by particular technological innovations nor by dominant designs, but by an
evolutionary process in which technological innovation contributes to a mounting
dominance by some early-entering firms.
32
CHAPTER-III
NEED, SCOPE AND
OBJECTIVES OF
THE STUDY33
NEED , SCOPE AND OBJECTIVES OF THE STUDY
3.1 NEED OF STUDY
The researches that were conducted in past by various professionals were regarding
various products of Tata but not done about the customer perception about Tata nano.
Study relating to other products of Tata is done but not regarding the customer perception
about Tata ano. This gap has been identified and it has let to the present research being
under taken so, the need was felt to cover the area as neglected, thus customer perception
about Tata nano has been study
3.2 SCOPE OF STUDY
Scope of the study about the customer perception about Tata nano is limited to Palampur
3.3 OBJECTIVE OF THE STUDY
Objectives are the guiding lights of the study. The present study is undertaken to achieve following objectives
1 To check the awareness level of customers about Tata nano..
2 To study the perception of customer regarding the inexpensive car
34
3 To know which features of the Tata nano is liked the most by the customers
4 To know which features of Tata Nano is not liked by the customer.
5 To know about the competitors of Tata nano
CHAPTER IV
RESEARCH METHODOLOGY
35
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The
Research Methodology includes the various methods and techniques for conducting a
Research. “Marketing Research is the systematic design, collection, analysis and
reporting of data and finding relevant solution to a specific marketing situation or
problem”. D. Slesinger and M.Stephenson in the encylopedia of Social Sciences define
Research as “the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge, whether that knowledge aids in
construction of theory or in the practice of an art”.
Research is, thus, an original contribution to the existing stock of knowledge making for
its advancement. The purpose of Research is to discover answers to the Questions
through the application of scientific procedures. Our project has a specified framework
for collecting data in an effective manner. Such framework is called “Research Design”.
The research process followed by us consists of following steps:
Research Design:-
Exploratory Research:-
36
Descriptive Research:-A type of conclusive research which has as its major
objective the description of something-usually market characteristics or functions.
In other words descriptive research is a research where in researcher has no
control over variable. He just presents the picture which has already studied.
Conclusion Oriented Research:-Research designed to assist the decision maker
in the situation. In other words it is a research when we give our own views about
the research.
Sample Design-Sampling can be defined as the section of some part of an aggregate or
totality on the basis of which judgement or an inference about aggregate or totality is
made. The sampling design helps in decision making in the following areas:-
Universe of the study-The universe comprises of two parts as theoretical
universe and accessible universe
Theoretical universe- It includes all the people throughout the universe.
Accessible universe- It includes people in palampur region.
Sample frame-Sample frame refers from where the questionnaires are to be
filled. Our sample frame consists of family, friends and classmates.
Sample size- Sample size is the number of elements to be included in a study.
Keeping in mind all the constraints 60 respondents were selected.
Sample unit- Sampling unit is the basic unit containing the elements of the
universe to be sampled. The sampling unit of our study is general public.
Sampling Techniques- The sampling techniques used are convience technique
and simple random sampling technique.
Methods of Data Collection- Research work is exploratory in nature. Information has
been collected from both Primary and Secondary data.
37
Primary sources- Primary data are those, which are collected are fresh and for
the first time, and thus happen to be original in character. Primary data has been
collected by conducting surveys through questionnaire, which include both open-
ended and close-ended questions and personal and telephonic interview.
Secondary sources- Secondary data are those which have already been collected
by someone else which already had been passed through the statistical process.
Secondary data has been collected through magazines, websites, newspapers and
journals.
Tools of Analysis-
To analyse the data obtained with the help of questionnaire, following tools were used.
Likert Scale : These consist of a number of statements which express either a
favourable or unfavourable attitude towards the given object to which the
respondents are asked to react. The respondent responds to in terms of several
degrees of satisfaction or dissatisfaction.
Weighted Average Score: This tool is used to calculate highest and lowest rank.
Tables: This is a tool to present the data in tabular form.
Percentage, Bar Graphs And Pie Charts: These tools were used for analysis of
data.
LIMITATIONS OF THE STUDY
Due to constraints of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that the findings of the study may
be understood in a proper perspective.
The limitations of the study are:
38
The research was carried out in a short period. Therefore the sample size and the
parameters were selected accordingly so as to finish the work within the given
time frame.
The information given by the respondents might be biased some of them might
not be interested to give correct information.
Some of the respondents could not answer the questions due to lack of
knowledge.
Some of the respondents of the survey were unwilling to share information.
CHAPTER-V
DATA ANALYSIS AND
INTERPRETATION
39
1. Do you have any vehicle ?
TABLE 5.1RESPONSE TOTAL NUMBER % OF RESPONSE
YES 47 78.33
NO 13 21.66
TOTAL 60 100
FIGURE 5.1
40
INTERPRETATION
Majority of people in Palampur region have vehicle.
41
2 If yes, then specify ?
TABLE 5.2
RESPONRES TOTAL NUMBER % OF RESPONSE
TWO WHEELER(1) 34 59.65
FOURWHEELER(2) 23 40.35
ANY OTHER(3) 0 0
TOTAL(4) 57 100
FIGURE 5.2
INTERPRETATION
Majority of the people have two wheelers in Palampur region
42
3 Are you aware about TATA NANO ?
RESPONSE TOTAL NUMBER % OF RESPONSE
YES 59 98.33
NO 1 1.66
TOTAL 60 100
Table 5.3
Figure 5.3
INTERPRETATION
Majority of the people in the Palampur region are aware about TATA NANO
43
4 Would you like to go for Rs one lakh car ?
Table 5.4
RESPONSE TOTAL NUMBER % OF RESPONSE
YES 28 46.66
NO 32 53.33
TOTAL 60 100
Figure 5.4
INTERPRETATION
44
Majority of people in Palampur region would not like to buy Rs 1 lakh car
5. What do you think of its mileage of 21 km/l?
RESPONSE TOTAL NUMBER % OF RESPONSE
Very good and reason to buy
16 26.67
Not good enough 14 23.33
Good enough 30 50
TOTAL 60 100
Table 5.5
Figure 5.5
45
INTERPRETATION
Majority of people of Palampur thinks its mileage is good enough
46
6. What Change would you like to see in TATA NANO ?
RESPONSE TOTAL NUMBER % OF RESPONSE
Regarding Design 24 37.5
Regarding color 3 4.68
Regarding the noise produced like three-wheeler while running
37 57.81
TOTAL 64 100
Table 5.6
Figure 5.6
INTERPRETATION
Majority of people wants to see change regading noise produced like three wheeler while running
47
1
7 . Is TATA NANO equal safe to travel as other cars?
RESPONSE TOTAL NUMBER % OF RESPONSE
YES 15 25
NO 45 75
TOTAL 60 100
Table 5.7
INTERPRETATION
Majority of people thinks that it is not equally safe to travel in TATA NANO as in other cars.
48
1
8. Kindly rank your preference (on the1 to 5 scale) about the parameters of TATA NANO considered while making purchase where 1 being the most important rank
To calculate the responses given by customers we apply the submitted scrore as below
OPTIONS RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 TOTAL
Brand Name
37 37
10 20
6 18
5 20
2 10
105
Shape and design
5 5
12 24
23 69
13 52
7 35
185
Safety 2 2
4 8
7 21
15 60
32 160
251
Affordability 16 16
19 38
9 27
12 48
4 20
149
Comfort 0 0
16 32
13 39
17 68
14 70
209
TOTAL 60 122 174 248 295 899
INTERPRETATION
1 By concluding we can say that safety ad comfort are not liked by people.
2 Or Brand name and affordability is likrd by people
49
9 Would you like to buy second hand car instead of TATA NANO ?
Table 5.9RESPONSE TOTAL NUMBER % OF RESPONSE
YES 28 46.67
NO 32 53.33
TOTAL 60 100
figur5.9
INTERPRETATION
Majority of people dose not like to buy second hand car instead of TATA NANO
50
10 Who is main competitor of TATA NANO ?
Table 5.10RESPONSE TOTAL NUMBER % OF RESPONSE
Maruti 800 34 56.67
Second hand cars 16 26.66
Bajaj lite 10 16.67
Planned car 0 0
TOTAL 60 100
Figure 5.10
INTERPRETAATION
51
Majority of people thinks that maruti 80 is the main competitor of TATA NANO
52
11. Do you think purchase decision of TATA NANO will effect your status?
RESPONSE TOTAL NUMBER % OF RESPONSE
YES 25 41.67
NO 35 58.33
TOTAL 60 100
Table 5.11
Figure 5.11
INTERPRETATION
Majority of people thinks that purchase decision of TATA NANO will not effect their status
53
CHAPTER-VI
FINDINGS OF THE
STUDY
54
CHAPTER – VII
CONCLUSION AND
RECOMMENDATIONS
55
REFERENCES
56
ANNEXURES
57
58