TATA NANO..Lakh-Takiya to Awesomeness Awaits ! (By-GAURAV KUMAR)

TATA MOTORS

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 35651.48 crores (USD 8.8 billion) in 2007-08. It is the leader in commercial vehicles in eacsegment, and among the top three in passenger vehicles
with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. In March 2008, Tata Motors acquired Ford's UK based car brands Jaguar and Land Rover (BBC News, 2008).

TATA NANO

Tata Nano is the first car to be said to be the common man's car. It is sold in home country India around Rs 1-lakh i.e approximately USD 2000. It is manufactured by Tata Motor Limited, the largest automobile company in India. It's Chairman, Mr Ratan Tata envisions that Tata Nano to become a “People car” which is affordable by almost everybody. Tata Nano was first launched in India on 1st April 2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge buzz all over India. Within the first two days of lunching, it has received 5500 booking. 

1 lac..seriously!!!

What makes Tata Nano so cheap? Basically, by making things smaller, lighter, do away with superficial parts and change the materials wherever possible without compromising the safety and environmental compliance. It is said that Tata Nano has better millage than Toyota Prius and same gas emission as a scooter.

MARKETING MIX

PRODUCT: Tata has a very wide range of products it has passenger cars, utility vehicles, Trucks, Commercial passenger Carriers and Defence Vehicles.

• Nano received media attention due to its targeted low price
• The Tata Nano is a rear-engine, fourpassenger ,city car built by Tata Motors,
• From Singur to Pantnagar (Uttakrkhand
• Aimed primarily at the Indian market

Price:  

The prices of Tata motors are generally affordable acceptable by the general public at large. Tata always have something for the lower class people with Nano being their trump card. Giving discount every month and special promotion for certain type of vehicle also one of the strong strategy use by Tata Motors. Discount can be made from Company’s profit or from dealer’s profit at certain range.

Pricing strategies:

•  Penetration pricing
• Low pricing policy with minimum profit margin.
• Though the one lakh price tag is not fixed by TATA group, it was the word of mouth of people which fixed that range. This expectation of people creates a big challenge for the company.

Place: Tata Motors has an extensive dealer network covering Indian and International markets. Wherever you are, there is a Tata Motors Sales and Service dealership close to you. The channel of distribution, physical location, and dealership method of distribution and sales is generally adopted. The distribution of vehicle must be in a very systematic way, from the plant to dealership and to end user. This is not only in India itself but also to the world-wide dealership.

Promotion: 

Tata motors promote their products via Advetising and after sales services.

• Enough use of one of the most important element of promotion mix, publicity reduces the necessity of other promotional devices for nano.
•  Publicity as “One lakh car” by mouth to mouth.
• Auto expo 2008,New Delhi & Geneva
• Publicity through print & electronic media
• Singur violation.

Internet will be a major media for advertising.

• Online buzz:-Nano has gone beyond the traditional methods of advertising and promotion online.
• Official Orkut community Members - 6,906.
• Official Facebook Group Fans - 4,210
• Highest View Count on You Tube- 303,006 (it was just under 3,00,000 when I began writing this post)
• No. of Blog Posts - 61,664

People: 

Tata Motors owe our success to the highly motivated and talented staff. Our recruitment division picks the crème-de-la-crème from premier universities, management and engineering institutes in India. They put them through rigorous training programmes to hone their entrepreneurial skills and impart comprehensive product knowledge.

Processes: 

Tata motors follow Balanced Scorecard Collaborative, Inc for achieving excellence in overall Company performance

Physical Evidence: 

The management of the company has managed to keep their hopes alive even in this recession and hopes that the worse is behind Tata Motors recently launched the most awaited car of the year, Tata Nano and the company has already received 203,000 booking that are fully paid and 70 percent of the applicants are ready to wait till the end of 2010 for the car to be manufactured.

STP ANALYSIS

Why the World's Cheapest Car Flopped

POSITIONING: 

TATA NANO was positioned as logical upgrade for a family of four with a two wheeler. This concept did not gel as every such household had an aspiration to move to something better and not necessarily cheaper,thus NANO was brought as a second car and not as a first car

PRICE:

 TATA NANO was supposed to be available for 1 lac only , which was increased due to the increase in input cost,yet it was called as one lac car.The companydid come out to explain the reason but it did not go well with the buyers

PROMOTIONS:

Instead of using right marketing channels, NANO was promoted using non-conventional marketing concept like social media which was simply a case of lack of communication to the appropriate customer

PRESENTED BY -GAURAV KUMAR

PGDMM01

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