Introduction
India is a developing country and is have lot of population with middle and lower middle class. Two -wheeler is most affordable vehicle for personnel ownership. Many couples with kids travel in single two wheeler. It was Ratan Tata’s dream to have a car, which these families can afford [3].
2.1 Background study and SWOT analysis of NANO car
2.1.1 About TATA MOTORS [1]
TATA Motors is India’s market leader and largest automobile industry. It is established in 1945. First TATA vehicle rolled out in 1954 and today over 8 million vehicles ply on Indian roads. Consolidated revenue for 2013-14 is INR 2,32,834 crores (USD 38.9 billion). Over 60,000 employees will work in TATA Motors.
TATA Motor’s manufacturing facilities spread across
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This helps in making decisions about product issues and strengths.
Strengths of Tata Nano: [4]
1. First innovations in global automobile industry. Set a bench mark.
2. Low price
3. High fuel efficiency, suited for all weather.
4. Brand name and vast experience in automobile industry
5. Stylish appearance and colors
6. Environmental friendly
7. Low parking space.
Weakness of Tata Nano: [4]
1. Low engine capacity.
2. Small tyres
3. Airbag and power steering not available in basic models
4. Difficult to drive in hilly areas
5. Poor engine cooling. Which creates over heating issues
6. Manual window up-down
7. No headlight levelers
8. Fiber body
Opportunities for Tata Nano [4]
1. Created world wide appeal in automobile market
2. Diesel and electric variants
3. Developing low cost engine oil
4. Bikes can be motived
5. Use in place of auto rickshaw and city taxi
6. Royalty
7. Motivate used car market
Threats for Tata Nano [4]
1. Competitors like Reva an electric car, Bajaj, Chery, General Motors, Maruti Suzuki
2. Fluctuating oil prices
3. Government regulations on taxes
4. Increasing cots on raw materials and
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1,00,000 and cost is increased to Rs. 1,50,000 in 2010 [8]. Competitors for NANO car in price are used car market and small cars like Maruti 800. Also NANO car has potential to attract two-wheeler users. Cost of NANO car should be competitive for all these segments.
2.3.3 Promotion Strategy
Tata admitted that, promoting and placing NANO car as world’s cheapest car was to blame for in failure in gaining success [11]. Positioning car is very important and it should give positive impact for the customers. NANO car should be promoted as “safe” alternative to attract two-wheeler customer. And TATA Motors already started promoting it as “smart city car” instead of cheapest car to attract urban customers. Its price, safety and car image should be collectively promoted to send a message to customers to be proud of having it. Social media also should be used to for promotion.
2.3.4 Distribution
TATA NANO will compete with two-wheeler customers as well as small car users. It is important to have sales network in tyre-II cities and small towns. People who know how to buy a two-wheeler should also know with same ease how to buy a TATA NANO car. Exposure of two-wheeler customer to NANO car will increase its sales from that
Through the Tata Megapixel marketing campaign need for a stylish, reliable, ecofriendly and economic vehicle will be created.
Provide wide range of modern, eco friendly and high quality vehicle to meet the needs of the customers
Tata motors approaching the market according to the nature of the market. Medium cost cars have more demand in Indian market than luxury cars. Tata motors identify the market demand and customer preference in advance. Nano car is the cheapest car in the world. It is an example of the company’s smart approach.
They are Hyundai Motor’s “Santro”, Daewoo Motors “Matiz” and Fiat India “Uno”. There was an effect on price sensitivity as people are ready to pay more for fuel efficient cars.
Tata Motors released the Nano automobile in 2008. In 2007, India with a population of 1.2 billion, only bought a little over 1 million automobiles. By contrast, they bought over 7 million
The automobile industry has exceedingly grown in today’s world. From the world’s fastest, luxurious car to the economic and fairly cheap ones, the market is very demanding. The industry in this analysis is Tata Nano. Tata Motors was established in the year 1945 by Ratan Tata and has developed as one of the most prevalent automobile industry in India. Tata Motors, established in a country where most of the population can only afford purchasing motorbikes. But, recent studies showed that 65% of Indian families are now able to afford cars and also applies to the increasing purchasing power of people across developing countries. The Tata Nano was launched in 2008, as a vision of Ratan Tata to facilitate those families who drove on a scooter to have a more comfortable drive at an affordable price of just $2500. Tata Nano is also known as the world cheapest car and signifies great technology and a small
Tata Motors is launched in 1945 as Tata Engineering and Locomotive Company Limited, for producing locomotives and other engineering products. Its first commercial vehicle was manufactured in 1954 with Daimler-Benz AG, ended in 1969. In 1991 with launch of the Tata Sierra it entered in the passenger vehicle market. Its first passenger car Tata Indica was launched in 1998 and it also launched the world’s cheapest car Tata Nano in 2008. Now it is involved in design, development, manufacturing and sales of vehicles and its parts. This is a second largest bus manufacturing company and fourth largest truck manufacturing company in the world
Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to
Ventures with local Chinese automotive companies. A joint venture with local Chinese automotive companies has allowed GM to overcome most of the foreign market entry barriers and accelerated the company’s growth in China. The company gained an access to the local brands and opened the market for its own brands. Few of General Motors’ rivals have succeeded in China so well. Moreover, I did mentioned Sustainability...."Since GM has enrolled into U.S. Environmental Protection Agency (EPA) ENERGY STAR energy-reduction challenge in 2010; the company has already avoided over $237 million in energy costs and reduced 1.8 million metric tons of carbon emissions in 73 of its U.S. facilities. The company was able to cut its energy spending per vehicle produced by 5.6% in 2015 alone.” General Motors (2016). General Motors is committed to sustainable clean environment results in lower cost, happier communities around it, attracts plenty positive publicity while strengthen brands image. Analyst making assessment strength company the change results, positive outcome of the company ethic images working internally with staff and workers to reap the benefits as well.
Production appears to be a constant problem for Tata Motors. Branded production of Tata motors vehicles is geared towards economical cars and not luxury, while it appears that the market is geared more towards luxury. Tata Motors branded car sells fell 31 percent from 2013 to 2014, and in 2015 fell another 24.5 percent from 2014. Production also appeared to have missed a large flaw in the Nano which caused it to catch fire. Marketing also seems to be lacking in other countries. Although Tata Motors is present in many countries, the largest portion of their consumer based is India where the company is mainly located. Although the largest portion of their sales comes from India, Tata Motors holds very little of the market share for passenger vehicles in India.
Being an Indian conglomerate holding company with its headquarter in Mumbai, Maharashtra.. Tata’s have 30 publicly- listed enterprises with a market capitalization of approximate $134 billion. And it has its own respect for its values and business ethics since from 1868, that is for more than 148 years.
Biswajit Mahanty and Virupaxi Abode (2007) More than 55 million two-wheelers are moving on Indian roads. Accordingly, two-wheeler service sector should have generated revenue amounting to INR 100,000 million per year, but in reality, this has not been realised in the organized service sector, the Indian two-wheeler service industry has not considered servicing as a line of business and providing conveniently reliable services is most important in two-wheeler services in India to capture the
Consumer nowadays are quite concern on the quality of the products purchased. They are more willing to pay for a premium in order to obtain a superior quality of a product rather than spend less money to get a low quality of product. Thus, quality has become an important factor in determining what car or vehicle to purchase among consumers. Previous research has suggested that consumers are keeping their cars for longer, so it is even more vital that their car be well-built and relatively inexpensive to maintain. Definitely, imported car is better as compared to local car especially in term of quality. This is because imported cars were more reliable and cheaper to maintain than domestic car. This helps consumers to save their considerable money at import car services such as for maintenance and repair over the life of the car. Even the price of domestic car is cheaper than imported car, but it require consumers to spend a lot for maintenance and repair in the future. As a smart consumer, it is essential to consider not only the initial cost, but also the overall cost of ownership for the life of the vehicle.
The Indian automobile industry is one of the largest automobile industries in the world with an annual production of 21.48 million vehicles in 2013-14. This industry accounts for 22% of the country’s manufacturing GDP (Gross Domestic Product).
Ratan Tata, chairman of Tata Motors Ltd., hoped to raise the status of Middle class families in India by offering the Tata Nano. Expectations were increasing amongst the customers regarding the product features and its efficiency. Competitors were eagerly waiting for its arrival to find out what they were going to be up against. It had strong and convincing features and was actually a good product. Unfortunately there were too many strategic marketing problems that kept it from being as big as they thought it was going to be. We will explain the problems it met and showcase some alternative solutions that could be implemented.