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    Tata Nano - Case Analysis

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    Santosh Rajan Iyer
    The document outlines Tata Motors' marketing plan for launching their new automobile, the Nano, in India. It discusses targeting lower income groups by positioning the Nano as the "one lakh car" and focusing on its fuel efficiency. Details are provided on market segmentation, product design, pricing strategy to reach 1 lakh, supply chain management, and promotional activities.

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    Tata Nano - Case Analysis

    Uploaded by

    Santosh Rajan Iyer
    1K views16 pages
    The document outlines Tata Motors' marketing plan for launching their new automobile, the Nano, in India. It discusses targeting lower income groups by positioning the Nano as the "one lakh car" and focusing on its fuel efficiency. Details are provided on market segmentation, product design, pricing strategy to reach 1 lakh, supply chain management, and promotional activities.

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    The document outlines Tata Motors' marketing plan for launching their new automobile, the Nano, in India. It discusses targeting lower income groups by positioning the Nano as the "one lakh car" and focusing on its fuel efficiency. Details are provided on market segmentation, product design, pricing strategy to reach 1 lakh, supply chain management, and promotional activities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    1K views16 pages

    Tata Nano - Case Analysis

    Uploaded by

    Santosh Rajan Iyer
    The document outlines Tata Motors' marketing plan for launching their new automobile, the Nano, in India. It discusses targeting lower income groups by positioning the Nano as the "one lakh car" and focusing on its fuel efficiency. Details are provided on market segmentation, product design, pricing strategy to reach 1 lakh, supply chain management, and promotional activities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 16

    MK-101 Sec-F Group-4

    Executive Summary
    Highly anticipated and hyped automobile debut in India The peoples car or the 1 Lakh car promising safety and

    comfort Planned to be launched in gasoline-powered version followed up by diesel versions Highly fuel efficient 22 to 26 kmpl Backed up by the big brand image of Tata Motors, the first Indian manufacturing company to be listed on the NYSE Plans to target masses focusing on the lower income segment

    Marketing Plan

    Market Identification Providing Value Communicating Value

    Market Identification
    Customer Segmentation/ Market Selection
    Income distribution Middle-Income group (2-5 l.p.a.) Low-Income group (upto 2 l.p.a.) Family-Size distribution
    Small family (2-4 people)

    Potential substitutes Used cars 2-wheelers

    Recommendation: More markets can be tapped E.g., Youth, Old and retired people, Individual members of the family

    Market Identification
    Customer Segmentation/ Market Selection
    Youth Market Research Results

    who buy

    who doesn t

    Market Identification
    Value Positioning
    Touted as the one-lakh car and peoples car The most fuel-efficient car

    Market Identification
    Market attractiveness
    Porters 5 forces

    Marketing Plan

    Market Identification Providing Value Communicating Value

    Providing Value

    Providing Value
    Product Design
    Design built from scratch No compromise on components quality Streamlined modular design components serving multiple purposes No frills - AC, tachometer, airbags, etc. not provided in the base model More Boot/seating space compared to other small cars Green car complying with stricter emission norms

    Recommendations: Offer more customization

    Providing Value
    Pricing How Nano reached the 1 Lakh figure?
    Design built from scratch No legacy costs

    Cut down on features Multi function parts used Reverse auctioning used 90% components outsourced; 75% of them single sourced. Low-rejection rate of parts Warranty costs went down tenfold
    Low dealer margins (2-3%) and low contribution margins (15%) Taxes 12.5%

    Final on road price = Rs 1,30,000 cheapest

    car in the world

    Providing Value
    Supply Chain
    Suppliers and Vendors Long-term volume contracts Majority of components outsourced/single-sourced Co-location of vendors Manufacturing/Assembly/Processing facility Initially 1 plant to be followed by addition of 3 other

    Providing Value
    Supply Chain
    Distribution Network Different distribution channels car shipped as kits Established distribution network 200 existing Tata Motors dealers Recommendation: Increase number of dealers Service Outlets Currently, the customer service index of TATA Motors is below market average. Recommendation: Increase in number of service outlets

    Marketing Plan

    Market Identification Providing Value Communicating Value

    Communicating Value
    Promotion
    Radio FM Publicity event in Malls More focus on safety risks involved with two wheelers Projecting image of Green Technology Encouraging use in rural areas

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